TITLE: Can You Get Mortgage Forbearance More Than Once? CONTENT: Can You Extend Your Mortgage Forbearance?\n-----------------------------------------\nAmong the many provisions of the 2020 pandemic relief legislation known as the CARES Act was a mandate requiring servicers of mortgages guaranteed by the federal government to grant borrowers mortgage forbearance. They could do this by accepting reduced mortgage payments or even suspending them altogether for a period of up to 180 days, with an option to extend them another 180 days as needed.\nThat mandate has been extended, giving borrowers the option to request up to two more 90-day forbearance periods, for a maximum total of 540 days (roughly 18 months) of forbearance relief. These provisions protect roughly 70% of all single-family home mortgages in the U.S.\nThe U.S. Consumer Financial Protection Bureau (CFPB) has created an online clearinghouse for information on COVID-19-related relief and assistance options for homeowners. It includes:\n*   A lookup tool that tells you if your mortgage is backed by the federal government and how to contact your mortgage servicer if it is.\n*   Resources on requesting mortgage forbearance, extending existing forbearance plans and working with lenders to avoid foreclosure. END
 TITLE: Can You Get Mortgage Forbearance More Than Once? CONTENT: You Can Still Request Mortgage Forbearance\n------------------------------------------\nIf you haven't already submitted an initial request for mortgage forbearance, you can do so until September 30, 2021, if your loan was issued through the Veterans Administration (VA), U.S. Department of Agriculture (USDA) or Federal Housing Administration (FHA).\nIf your mortgage is guaranteed by Fannie Mae or Freddie Mac, there is no deadline for submitting an initial forbearance request. END
 TITLE: Can You Get Mortgage Forbearance More Than Once? CONTENT: How to Get Mortgage Forbearance Extensions\n------------------------------------------\nThe CARES Act initially entitled borrowers with mortgages backed by the federal government (FHA Loans, USDA Loans, VA Loans) or guaranteed by Fannie Mae or Freddie Mac up to 180 days (roughly six months) of mortgage forbearance, with an option to extend forbearance up to 180 more days.\nAs many as two additional extensions of 90 days each are available to homeowners who obtained mortgage forbearance under the CARES Act, adding up to a total maximum of 540 days (about 18 months) of forbearance for those who meet these eligibility requirements:\n*   If your mortgage is backed by Fannie Mae or Freddie Mac, you must have been in an active forbearance plan as of February 28, 2021, to qualify for one or more additional extensions.\n*   If your mortgage is backed by the FHA, USDA or VA, you must have requested a forbearance plan on or before June 30, 2020, to be eligible for additional extensions.\nIf you are eligible for extended forbearance on your government-backed mortgage, you must proactively request extension(s) from your loan servicer—forbearance is not extended automatically.\nIf your mortgage is not backed by the federal government, you may still be eligible for a forbearance extension. According to the CFPB, many loan servicers are offering customers with non-guaranteed loans forbearance comparable to what they provide borrowers with government-backed mortgages. To learn what options are available, reach out to your mortgage servicer. END
 TITLE: Can You Get Mortgage Forbearance More Than Once? CONTENT: Foreclosure Protections Are Still Available in Some States\n----------------------------------------------------------\nAlong with mortgage forbearance mandates, the CARES Act imposed a temporary moratorium preventing mortgage lenders from foreclosing on borrowers with federally backed mortgages during the COVID-19 crisis. That moratorium was extended several times, but its most recent extension was struck down by the U.S. Supreme Court—a move that allowed foreclosures to resume.\nHowever, the foreclosure moratoriums that some states and municipalities have instituted still stand. Some of these protections extend to all mortgage lenders, not just issuers of government-backed loans. END
 TITLE: Can You Get Mortgage Forbearance More Than Once? CONTENT: Prepare Your Finances for the End of Relief Measures\n----------------------------------------------------\nMortgage forbearance and foreclosure moratoriums won't be extended forever. If they've bought you some breathing room in the face of pandemic-related income reductions, now is a good time to plan for their inevitable expiration.\n### Forbearance Repayment Options\nIf you're in mortgage forbearance, it's important to work with your mortgage servicer to figure out how you will repay the sum you were permitted to forgo paying during your forbearance period. Options include the following:\n*   **Repayment plan:** Under this option, your regular mortgage payments are increased temporarily (typically for no more than 12 months) until you repay the amount left unpaid during your forbearance period.\n*   **Payment deferral:** With this arrangement, the sum you owe (and interest charges that apply to it) are added to the end of your mortgage term. You must pay it in full as the final payment on your mortgage or pay it off when you sell the house, whichever comes first.\n*   **Loan modification:** In a mortgage modification, your loan servicer issues you a new loan for the sum of the amount you owe from forbearance and your outstanding mortgage balance, lowering your monthly payments (and typically increasing your total interest costs) by extending the payback period by several months or years.\n*   **Lump sum:** At the conclusion of your forbearance period, you must repay all the money you were spared paying during forbearance, in one single payment.\n### Foreclosure Alternatives\nIf you're behind on mortgage payments and concerned that foreclosure could begin as soon as applicable moratorium(s) expire, connect with your mortgage lender or servicer as soon as possible to try to work out alternatives to foreclosure:\n*   **Sell the house.** Housing markets are highly competitive in many parts of the country right now, so it may be possible to sell your home and use the proceeds to pay off the remainder of your mortgage (including the back payments you owe).\n*   **Pursue a short sale.** If your home's market value is less than what you owe on your mortgage, your best option for getting out from under it may be a short sale. Under this arrangement, which requires permission from your mortgage lender, you can sell the house at market value and turn all of the proceeds over to the lender. Depending on how the deal is negotiated, the lender may forgive the amount you still owe on the original mortgage, or arrange for you to pay back some or all of that remainder over time.\nYour credit report will reflect a short sale by listing your mortgage account as settled for less than the full amount owed, which can have negative consequences for your credit scores. END
 TITLE: Can You Get Mortgage Forbearance More Than Once? CONTENT: How to Get Help\n---------------\nIf you're worried about how you'll be able to resume payments following mortgage forbearance, or if you're otherwise concerned about the possibility of losing your home to foreclosure, the following federal resources may offer help:\n*   The U.S. Department of Housing and Urban Development (HUD) has a team of housing counselors who can offer guidance and help you understand the options in your state to help you stay in your home.\n*   The CFPB provides a directory you can use to locate an attorney in your state who can help you navigate the legal processes around foreclosure.\n*   If you feel your mortgage lender or servicer has mismanaged your forbearance or foreclosure proceedings, you can submit a complaint to the CFPB and the bureau will follow up with an investigation.\n### Watch Out for Scams\nCriminals are always ready to take advantage of people who are financially vulnerable, so be careful about offers from \"experts\" who claim they can make your mortgage difficulties go away:\n*   Verify the identity of anyone who calls, emails or texts you claiming to represent your mortgage lender or mortgage servicer. Insist on calling them directly, and do so using a publicly available phone number or email address taken from your mortgage paperwork.\n*   Monitor your credit reports closely to make sure your mortgage payments are being reported accurately, and to help you detect any unauthorized credit activity by criminals who manage to obtain your personal information.\nFederal mortgage forbearance and foreclosure protections must eventually come to an end. With careful preparation, you can help put them, and the COVID-19 pandemic, behind you. END
 TITLE: 10 Potential Reasons Why Your Credit Card Application Was Denied CONTENT: 1\\. You Have a Low Credit Score\n-------------------------------\nCredit cards are available for consumers across the credit spectrum, but many have stricter credit score requirements than others. With most of the top rewards credit cards, for instance, you may need good or even excellent credit to get approved.\nEach lender has its own criteria for what constitutes good or excellent credit, but according to FICO, good credit starts at a 670 FICO® Score☉ .\nCheck your credit to find out where you stand and work on areas that need improvement. Also, consider using a tool like Experian CreditMatch™ to get card offers based on your credit profile. END
 TITLE: 10 Potential Reasons Why Your Credit Card Application Was Denied CONTENT: 2\\. You Have a Limited Credit History\n-------------------------------------\nIf you're fairly new to credit, it can be challenging to get approved for some credit cards. While this doesn't seem fair—after all, you can't build credit without getting approved for and using credit accounts—it comes down to uncertainty for lenders.\nHaving a limited credit history doesn't mean you're not trustworthy. However, it likely means the card issuer doesn't have enough information on how you manage credit to determine whether you'd be a good customer.\nConsider applying for a credit card that's designed to help people build credit, or with a card issuer that uses alternative credit data like income and expenses to evaluate credit applications. END
 TITLE: 10 Potential Reasons Why Your Credit Card Application Was Denied CONTENT: 3\\. You Have Insufficient Income\n--------------------------------\nCard issuers typically don't disclose how much money you have to earn to get approved. But if you're a college student or only working part time, it could prove difficult to convince a credit card company that you have the ability to repay all debts you charge to the card.\nUnderstand what counts as income on a credit application to ensure that you're not leaving anything out. END
 TITLE: 10 Potential Reasons Why Your Credit Card Application Was Denied CONTENT: 4\\. You Have a History of Late Payments\n---------------------------------------\nYour payment history is the most important factor in your FICO® Score, so if you've missed even one payment by 30 days or more, it could damage your credit score and make it hard to get approved for certain credit cards.\nUnfortunately, you can't get rid of late payments unless the information is inaccurate. But some secured credit cards and other cards for bad or fair credit could still be accessible as you work to rebuild your credit score. END
 TITLE: 10 Potential Reasons Why Your Credit Card Application Was Denied CONTENT: 5\\. You Have High Debt\n----------------------\nThe more debt you have, the harder it can be to keep up with all of your monthly payments. And because credit card issuers prioritize on-time payments, having too much debt relative to your income can hurt your odds of getting a new credit card.\nIf you have high credit card balances or a lot of debt payments in general, consider paying down your credit cards before you apply again. END
 TITLE: 10 Potential Reasons Why Your Credit Card Application Was Denied CONTENT: 6\\. You're Too Young\n--------------------\nYou must be at least 18 years old to get a credit card on your own. If you're younger than that, consider asking a parent to add you as an authorized user on one of their credit cards. It'll help build your credit and give you a card you can use before you apply for another card of your own. END
 TITLE: 10 Potential Reasons Why Your Credit Card Application Was Denied CONTENT: 7\\. Your Credit Report Is Frozen\n--------------------------------\nCredit card issuers use your credit reports to determine whether you're eligible to open a new account. If you've frozen your credit reports to stop identity thieves from accessing or using your information to open fraudulent accounts, you'll need to unfreeze them before you submit an application for yourself. END
 TITLE: 10 Potential Reasons Why Your Credit Card Application Was Denied CONTENT: 8\\. You Have a Recent Bankruptcy\n--------------------------------\nAs previously mentioned, payment history is the most influential component of your FICO® Score, and filing bankruptcy indicates that you didn't pay your debts as originally agreed.\nIf your bankruptcy is still open, it can be incredibly difficult to get approved for a new credit card because you could technically include it in the bankruptcy. Even if your bankruptcy has been discharged, it may still take a while and some positive credit history before you'll qualify for certain cards.\nFortunately, there are some credit cards that are still available if you have a bankruptcy on your credit report, such as a secured credit card. Keep in mind, though, that you may need to provide a security deposit or pay high fees and interest. END
 TITLE: 10 Potential Reasons Why Your Credit Card Application Was Denied CONTENT: 9\\. You Have Too Many Recent Credit Inquiries\n---------------------------------------------\nEach additional hard inquiry on your credit report doesn't impact your credit score by much. But if you have multiple credit inquiries in a short period and they weren't for rate-shopping a mortgage, auto loan or student loan, that could indicate that you're having a hard time managing your finances without debt.\nIn that event, you may need to wait until some inquiries fall off your credit report before you apply again. Hard inquiries remain on your report for two years but won't affect your credit score for that long. END
 TITLE: 10 Potential Reasons Why Your Credit Card Application Was Denied CONTENT: 10\\. You Didn't Fill Out the Application Correctly\n--------------------------------------------------\nIn some cases, applicants who have been denied may have accidentally entered incorrect information on their credit application. If this happens and it causes you to be viewed in a more negative light, you could potentially fix the error and request that the card issuer reconsider your application. END
 TITLE: 10 Potential Reasons Why Your Credit Card Application Was Denied CONTENT: Does Getting Denied for a Credit Card Hurt Your Credit Score?\n-------------------------------------------------------------\nGetting denied doesn't directly hurt your credit, but the hard inquiry from applying can temporarily lower your credit score by a few points. And remember, if you apply for multiple credit cards in a short period in the hopes that one card issuer will approve you, that can have a compounding negative effect on your score.\nIn most cases, though, your credit score will bounce back in a few months to a year after a single inquiry. END
 TITLE: 10 Potential Reasons Why Your Credit Card Application Was Denied CONTENT: What to Do if Your Credit Card Application Is Denied\n----------------------------------------------------\nIf your credit card application has been rejected, it's important to avoid applying for another card until you've received the adverse action letter in the mail to find out the reasons for the denial. In some cases, you may also be able to contact the card issuer directly to get the information.\nOnce you know why you were denied, take steps to address the issue. For example, you may need to increase your credit score, pay down other credit card balances, get caught up on past-due payments or unfreeze your credit reports.\nOne relatively easy way to improve your credit score is through Experian Boost™† . With this tool, you can get credit for on-time payments you've made with your phone, utility and certain subscription services. Simply connect your financial accounts and choose which payments you want to have added to your Experian credit file. If the new additions can increase your score, you'll see the results immediately.\nNo matter why you were denied for a credit card, be proactive about improving your credit and financial situation so that the next time you apply for the card you want, your odds of getting approved will be higher. END
 TITLE: How to Recast Your Mortgage CONTENT: How Does a Mortgage Recast Work?\n--------------------------------\nWhen you recast your mortgage, you pay a lump sum toward the principal you owe on your home loan. Your mortgage lender then calculates a new monthly payment based on the reduced balance. The term and interest rate of the loan stay the same.\nRecasting a mortgage does come with an out-of-pocket cost, in the form of an administrative fee, but it's typically only a few hundred dollars.\nA key difference between a mortgage recast and a mortgage refinance is a recast isn't a new loan. You don't have to go through an application process, and the lender won't check your credit or order an appraisal of your home. Both processes involve fees, though they're typically lower for recasting than they are for refinancing. Even with cheaper fees, however, the process of recasting tends to be much more expensive than refinancing thanks to the required lump-sum payment. The best choice for you depends on your needs and preferences.\nHere's an example of how a recast might work.\nLet's say you bought your home in May 2016. You currently owe $250,000, with a monthly principal and interest payment of $1,600. The interest rate for your 30-year conventional mortgage is 5%.\nNow, let's say you inherited $100,000 from your Aunt Betty, and you decide to put $50,000 of that toward a mortgage recast. While you'll still have a 30-year loan with a 5% interest rate, the recast will drop your monthly payment from $1,600 to $1,179. That's a savings of $421 a month. END
 TITLE: How to Recast Your Mortgage CONTENT: How to Request a Mortgage Recast\n--------------------------------\nThe steps you need to take for a mortgage recast are pretty straightforward:\n*   **Review your current mortgage status.** You might not be able to recast your mortgage if, for instance, you're currently behind on your loan payments or you've made late payments in the past 12 months.\n*   **Contact your lender or loan servicer.** Some lenders don't allow mortgage recasts.\n*   **Find out how much cash you'll need.** If your lender does allow mortgage recasting, ask how much you'll need to provide as a lump-sum payment. Generally, the payment must be at least $20,000, although lenders may require as much as $50,000 or as little as $5,000. The mandatory payment may be a flat amount or a percentage of the loan balance.\n*   **Apply for a recast.** Obtain a mortgage recast application from your lender.\n*   **Make the lump-sum payment.** If your application is approved, send the lump-sum payment and recast fee to your lender.\n### What Kinds of Mortgages Qualify for Recasting?\nOnly conventional loans, which are not backed by the federal government, can be recast. These include loans that \"conform\" to Fannie Mae and Freddie Mac standards, as well as jumbo loans that exceed Fannie Mae and Freddie Mac borrowing limits. Government-backed mortgages, such as FHA, VA and USDA loans, cannot be recast. END
 TITLE: How to Recast Your Mortgage CONTENT: Pros and Cons of Mortgage Recasting\n-----------------------------------\nRecasting your mortgage offers pros and cons.\n### Pros\n*   Lower monthly mortgage payment\n*   No credit check\n*   No closing costs\n*   No home appraisal\n*   Low administrative fee\n*   Same interest rate\n*   Same loan term (such as 30 years)\n### Cons\nAmong the cons of mortgage recasting are:\n*   Not offered by all lenders\n*   Not all mortgages qualify\n*   A potentially large lump-sum payment is required\n*   Interest rate stays the same\n*   Loan term doesn't decrease. If you initially took out a 30-year loan, a recast mortgage will still be a 30-year loan. END
 TITLE: How to Recast Your Mortgage CONTENT: Alternative Ways to Save Money on Your Mortgage\n-----------------------------------------------\nIf for some reason a mortgage recast doesn't work out, you've still got options for saving money on your mortgage. Here are five of them.\n1.  **Refinance the mortgage to gain a lower interest rate.** This might result in tens of thousands of dollars in savings on interest charges over the life of the loan.\n2.  **Make just one extra payment each year.** This can potentially save you thousands of dollars in interest over the life of the loan.\n3.  **Get rid of mortgage insurance****.** If you made a down payment of less than 20% for a conventional mortgage, you may have had to pay private mortgage insurance (PMI). The insurance protects the lender in case you default on your loan. You can ditch PMI by speeding up mortgage payments in order to reach the 20% PMI threshold.\n4.  **Modify the mortgage** **if you're experiencing financial difficulties.** You may be able to reduce the interest rate or principal, or extend the time you have to pay off the loan.\n5.  **Go over** **your budget****.** When you review your household spending, you may be able to find savings that can be earmarked for extra mortgage payments. END
 TITLE: How to Recast Your Mortgage CONTENT: The Bottom Line\n---------------\nAs you're considering a mortgage recast, you may want to check your free Experian credit report and free Experian credit score to see where you stand financially. By checking your credit, you can put yourself in a better position to pursue refinancing if mortgage recasting turns out not to be an option. END
 TITLE: How Does Inflation Affect Your Credit? CONTENT: What Is Inflation?\n------------------\nThe federal government tracks inflation using statistical measurements known as the consumer price index (CPI). The CPI tracks the prices of consumer goods and services and breaks out separate measures of food and energy costs. Inflation happens when prices rise and each dollar of income has less buying power. In April 2021, the CPI saw its largest year-over-year gain in eight years. While inflation can be a byproduct of healthy economic expansion, and many economists expect the recent trends to be temporary, others are concerned about the trend. END
 TITLE: How Does Inflation Affect Your Credit? CONTENT: Inflation Is Not a Credit Score Factor\n--------------------------------------\nRising prices and the dollar's purchasing power have no direct impact on credit or credit scores: Credit scores are calculated using the data compiled in your credit reports by the three national credit bureaus (Experian, TransUnion and Equifax). Credit reports document your accounts, their status and your history of borrowing and repaying debts. Economic measurements such as inflation do not influence credit scores. Only the following factors affect your FICO® Score☉ , which is the credit score used by 90% of top lenders:\n*   **Timely payments**: Paying your debts on time each month is the top factor for promoting credit score improvement. As a result, late or missed payments can do significant damage to your credit scores. Payment history is responsible for about 35% of your FICO® Score.\n*   **Credit usage:** Your total debt, and especially your credit utilization—the percentage of your credit card borrowing limits represented by your outstanding balances—contributes about 30% of your FICO® Score. As the sum of all your balances approaches and exceeds 30% of the sum of all your credit limits, your credit scores can see a potentially significant drop.\n*   **The length of your credit history:** Lenders value borrowers with lots of experience managing debt. For that reason, credit scores tend to increase over time in the absence of missed payments or other credit slip-ups. The age of your credit history accounts for about 15% of your FICO® Score.\n*   **Credit mix:** Lenders also value a borrower's ability to handle multiple types of debt at once. Your FICO® Score may be helped if you have multiple open accounts, and combinations of installment debt and revolving credit. Credit mix is responsible for about 10% of your FICO® Score.\n*   **New credit:** When you apply for a credit card or loan, the lender typically requests a copy of your credit report and, often, a credit score based on that report—a credit check known as a hard inquiry. Hard inquiries have the potential to cause temporary credit score drops. The appearance of a new credit account can also result in a short-lived score drop. New credit accounts for about 10% of your FICO® Score. END
 TITLE: How Does Inflation Affect Your Credit? CONTENT: How Inflation Can Indirectly Affect Credit\n------------------------------------------\nWhile inflation cannot directly influence your credit scores, big changes in the value of the dollar could lead to circumstances that hurt your credit scores and limit your ability to borrow money:\n*   **Unaffordable payments:** If the prices on everyday necessities increase to a point that you're forced to choose between, say, buying groceries and making monthly debt payments, then late or missed payments could damage your credit scores.\n*   **Increased debt:** If you resort to using credit cards to cover expenses your income can't cover in full, higher card balances and utilization could start to affect your credit scores. END
 TITLE: How Does Inflation Affect Your Credit? CONTENT: Managing Credit in Times of Inflation\n-------------------------------------\nStrategies to consider for managing your finances in times of inflation include diversifying your investment holdings, seeking a raise or starting a \"side hustle\" to boost your income. Here are a few other basic steps:\n*   **Think hard about major purchases.** Factors influencing today's inflationary trends include limited availability coupled with high demand for goods and property in many parts of the U.S. That means this may not be the ideal time to buy a car or purchase a house, for instance.\n*   **Consider selling surplus assets.** When prices are rising, there's typically a seller's market for many types of high-value assets, so if you have an extra car, vacation home, RV, or other type of property you've been considering selling, inflation and market demand could help you get top dollar on the sale. Note, however, that inflated prices will work against you as a buyer if you need to replace the item you sell.\n*   **Plan for a rainy day.** Prudent uses for any money you're able to save or that you gain from selling assets include bolstering your household emergency fund and retirement savings.\n*   **Pay down debt.** Once your bills are paid and your other major financial priorities are covered, consider using any extra income to pay down outstanding debt. While consumer prices are increasing, the cost of existing debt—especially loans and credit cards with fixed interest rates—remains stable, so it can be a good use of funds. In addition, lowering overall debt and credit utilization can boost your credit scores and spare you interest charges.\n*   **Get assistance if you need It.** If rising prices stretch your household expenses to a point where you're having trouble paying bills, consider working with a certified credit counselor to get advice and assistance with budgeting, prioritizing debt and, if necessary, help negotiating with your creditors to ease your monthly payments. You can also look for financial assistance in the form of grants, government benefits and access to services.\nInflation isn't a major influence on credit, but when prices are increasing, making good financial choices can help you build or maintain a strong credit profile, so you can borrow money when you really need it. You can check your credit report and get your credit score for free with Experian to make sure you're still on solid ground. END
 TITLE: Credit Score Basics CONTENT: What Is a Credit Score?\n-----------------------\nParaphrasing from the Fair Credit Reporting Act, a credit score is a numerical value derived from a modeling system used to predict the likelihood of default. To put it simply, credit scores are used to differentiate higher-risk borrowers from lower-risk ones. To do this, the main consumer credit scoring models, FICO® and VantageScore®, rank consumers using a 300-to-850 score range.\nCredit scores are important because they are one of the core tools used by lenders to determine whether they'll grant you credit, and at what cost. If you have great credit scores, then you'll have access to competitively priced credit from many mainstream lenders. If you have poor credit scores, your options will be more limited and more expensive. END
 TITLE: Credit Score Basics CONTENT: How Are Credit Scores Calculated?\n---------------------------------\nThe different brands of credit scores actually have many things in common. Both your FICO® and VantageScore credit scores consider information from your credit reports that reflect your payment history, your debt, the age and diversity of your credit reports, and credit inquiries. While the FICO® and VantageScore scoring models weigh the information slightly differently, your scores should never be wildly different if they are calculated from the same credit report at the same or similar points in time.\nThe most effective way to ensure that you'll have good credit scores is by paying your bills on time and maintaining low amounts of debt, specifically credit card debt. And, if you only apply for credit when you truly need it, then you won't fill up your credit reports with an excessive number of credit inquiries. Finally, scores tend to climb as the length of your credit history grows. If you perform well in all of these credit scoring categories, then you will likely have high FICO® and VantageScore credit scores. END
 TITLE: Credit Score Basics CONTENT: What Is Considered a Good Score?\n--------------------------------\nThe question of what is considered a \"good\" credit score is really best answered by your lenders. Because it's ultimately your lenders that are on the hook for monetary losses if their borrowers default, it's the lenders that decide what is and what is not a good score. Having said that, there is some general consensus on what is a good, or better, credit score.\nAs of mid-2020, the average FICO® Score☉ was 707, while the average VantageScore credit score was 686. As such, anything at or around 700 is about an average score. Lenders, however, are looking for considerably higher scores if they're going to approve credit applications with their best interest rates and terms.\nFor example, according to Informa Research Service, the lowest average interest rates on a 30-year fixed-rate mortgage are reserved for consumers who have FICO® Scores of 760 or higher. The lowest average rates for a loan on a new car go to consumers who have FICO® scores of 720 or higher. END
 TITLE: Credit Score Basics CONTENT: Will Checking Your Credit Reports Affect Your Credit Scores?\n------------------------------------------------------------\nIt's always a good idea to monitor your credit reports and credit scores regularly, especially since you can get so much of your credit information for free. And, checking your own credit reports will not have any negative impact on your credit scores, as long as you're accessing your credit reports from the right places.\nIf you check your credit reports with any of the three credit reporting companies (Experian, TransUnion and Equifax), your scores will not be impacted at all. The same goes if you check your credit reports through www.AnnualCreditReport.com.\nChecking your credit via either of these reputable methods will result in what's called a \"soft\" credit inquiry being placed on your credit reports. Soft credit inquiries do not affect your credit scores.\nBe careful, however, not to ask connections who work at car dealerships or mortgage brokers to access your credit reports as a favor. This will result in what's called a \"hard\" credit inquiry being placed on your credit reports. Hard inquiries are usually the result of a consumer applying for some form of credit. While hard inquiries do not always impact credit scores, they can. END
 TITLE: Credit Score Basics CONTENT: How to Improve Your Credit Scores\n---------------------------------\nBecause your credit scores are a product of the information on your credit reports, for you to improve your scores you will need to first improve your credit reports. Some consumers have poor scores because of negative information on their credit reports, such as late payments, defaults or collections. For those consumers, the journey to higher credit scores will take longer because that type of negative information can remain on your reports for up to seven years.\nThe best ways to improve your credit scores going forward, whether or not you have negative information on your credit reports, is to make all your debt payments on time—every time. Once the existing negative information starts to age and is eventually removed from your credit reports, you'll be well on your way to better scores.\nIf your credit scores aren't as high as you'd like because of excessive credit card debt, then the news is more optimistic. As soon as you are able to pay down or pay off credit card debt, your scores will likely improve because of the reduction in the highly influential credit utilization ratio, which considers your credit card balances relative to your credit card limits. END
 TITLE: Does the Type of Credit Score Matter? CONTENT: What Is a Credit Score?\n-----------------------\nA credit score is a three-digit number usually ranging from 300 to 850 that lenders use to predict your credit risk. A credit score takes into account the information appearing on your credit reports as maintained by the three national credit reporting agencies (Experian, TransUnion and Equifax). Information that is not on your credit reports is not considered by credit scoring models. END
 TITLE: Does the Type of Credit Score Matter? CONTENT: What Are the Main Credit Scoring Models?\n----------------------------------------\nThere are two commonly used brands of credit scores in the U.S. consumer credit environment: FICO®, named for the Fair Isaac Corp., and VantageScore®. Collectively, these two scoring brands account for over 20 billion scores used annually. END
 TITLE: Does the Type of Credit Score Matter? CONTENT: Where Can I Get My Credit Scores?\n---------------------------------\nWith so many credit scores out there, there's little chance all of them are the same, though they are likely to be similar.\nThere is no shortage of places where consumers can go to see their credit scores. Some are free and some are not. The credit reporting agencies all either sell credit scores or provide them at no cost. There are also various third-party websites that will either sell you a score or give you a free credit score in exchange for you becoming a registered user of their site. And finally, many financial institutions have partnered with either FICO® or the credit reporting agencies to give away either FICO® or VantageScore branded scores. For example: END
 TITLE: Does the Type of Credit Score Matter? CONTENT: Are There Other Types of Scores?\n--------------------------------\nWhile the FICO® and VantageScore credit scoring models certainly get most of the attention, there are other types of scores in use today. Some other examples include:\n*   **Insurance risk scores**: An insurance risk score predicts either the likelihood that you will file an insurance claim or that you will be an otherwise less profitable insurance customer. FICO® builds insurance risk scores, as does LexisNexis.\n*   **Collection scores**: A collection score, used by debt collectors, ranks debtors based on their likelihood of paying their collection account debts. FICO® creates collection scores.\n*   **Custom scores**: Custom scores are credit scoring models built for use by one party, usually a lender or an insurance company. Custom scoring systems can take into account credit report data, credit application data and even other credit scores. Most mid- to large-sized lenders use custom scoring systems, as well as garden variety credit bureau scores.\n*   **Bankruptcy scores**: Bankruptcy scores are designed to predict the likelihood that you'll file for bankruptcy protection. END
 TITLE: Does the Type of Credit Score Matter? CONTENT: How to Improve Your Credit Scores\n---------------------------------\nWhile there are numerous credit risk scores that fall under the FICO® and VantageScore brands, they all consider the same information: your credit report data. Simply put, if you have great credit reports, you're going to have great credit scores, regardless of the score brand, variation or generation. And while the FICO® and VantageScore credit scores max out at 850, scores in the mid-to-high 700s are generally considered to be excellent.\nCredit scoring models use roughly five categories of information to calculate credit scores. Both the FICO® and VantageScore scoring systems use the following metrics:\n*   **Payment history**: How reliably you make on-time payments is very influential to your credit scores, accounting for 35% to 40% of your score. Negative information that could appear here includes late payments, bankruptcy, collections, foreclosures, repossessions and any record of account defaults. If you can avoid these negative events, you'll be well on your way to earning and maintaining great credit scores.\n*   **Credit utilization and other debt-related metrics**: A common misconception about credit scores is that as long as you make your payments on time, you'll have great scores. Your debt load is also a very influential component of your credit scores. In fact, this category accounts for about one-third of your credit scores.  \n    This category considers the number of accounts with balances, your credit card balances relative to their limits (known as your credit utilization ratio), the percentage of your loan balances relative to loan amounts, and the amounts you owe across different types of accounts. In both the VantageScore 4.0 and FICO® 10T credit scores, your trended balance data is also considered.\n*   **Inquiries, credit age and account types**: These three categories account for the remaining roughly one-third of your credit score calculation. Individually these categories are the least influential, but if you want top credit scores, then they are important.\nThese categories consider the number of inquiries on your credit reports in the past 12 months, the age of your oldest account (the more credit history you have, the better), the average age of your accounts, and the mix of account types on your credit reports. END
 TITLE: Does the Type of Credit Score Matter? CONTENT: Building Great Credit\n---------------------\nCredit scores are commonly used by lenders and other service providers, and have been for decades. They are a numeric representation of the quality of your credit reports. If you have top credit scores, then you will have greater access to competitively priced credit from lenders.\nTo earn great credit scores, you need to follow a simple routine: Make all of your payments on time, always; maintain low or no credit card debt; and only apply for credit when you need it. If you can do these things, then your credit scores—all of them—will reflect your positive credit behavior. END
 TITLE: What Are Inquiries On Your Credit Report? CONTENT: How Do Credit Inquiries Work?\n-----------------------------\nWhen deciding whether to extend you credit—and if so, how much and at what interest rate—lenders typically obtain your credit report from one or more of the three national consumer credit bureaus (Experian, TransUnion and Equifax). Your credit report offers a summary of your debts and payment history on those debts.\nAs part of their evaluation process, creditors often also obtain one or more credit scores: three-digit numbers derived from statistical analysis of your credit report's contents. A higher score indicates lower likelihood you'll fail to repay your debts. When you apply for credit or services such as a cellphone account, your application usually indicates that you are giving the lender permission to do a credit check. When lenders run those credit checks, hard inquiries appear on your credit report.\nCertain companies are also legally allowed to access your credit information for reasons other than an application you made, such as when your current lenders periodically check your reports or when a potential lender sends you a preapproved offer.\nEmployers may also check your credit history with your written permission, although they will not receive a credit score. In addition, you may check your own credit reports and credit scores, and it's wise to do so regularly—these checks have no effect on your credit rating. Credit checks such as these, which are not related to credit applications, generate soft inquiries on your credit report. END
 TITLE: What Are Inquiries On Your Credit Report? CONTENT: What Is a Hard Inquiry?\n-----------------------\nA hard inquiry appears on your credit report when a lender checks your credit in response to an application for a new loan, credit card or line of credit.\nWhenever you seek new credit, there's the potential for a new debt, which may temporarily lower scores slightly until you can show that you are managing that new debt responsibly. Credit scoring models such as those from FICO® and VantageScore® sometimes account for that increase in risk by lowering your scores slightly; FICO® says hard inquiries typically dock scores by less than five points.\nHard inquiries remain on your credit report for up to two years, but as long as you keep up with your debt payments, credit scores often rebound from an inquiry within a few months. And, most credit scoring models no longer count a hard inquiry in score calculations at all after 12 months. END
 TITLE: What Are Inquiries On Your Credit Report? CONTENT: What Is a Soft Inquiry?\n-----------------------\nSoft inquiries appear on your credit report when someone runs a credit check for reasons unrelated to lending you money. These events are not associated with greater repayment risk, so they have no effect on your credit scores. Here are a few examples:\n*   Utility companies may use credit checks to decide if they require security deposits on leased equipment such as Wi-Fi routers or satellite dishes.\n*   Auto insurers may use credit checks to help set premiums, since safe driving habits and high credit scores show strong correlation.\n*   Credit card issuers with whom you already have accounts may check your credit scores for purposes of marketing new cards or other products to you.\nIf you obtain your own credit report or check your credit score using a credit monitoring service such as Experian's, that will generate a soft inquiry on your credit report. But, as with other soft inquiries, monitoring your own credit scores cannot hurt your credit. END
 TITLE: What Are Inquiries On Your Credit Report? CONTENT: How to Manage Hard Inquiries\n----------------------------\nBecause hard inquiries can reduce your credit score, it's wise to refrain from seeking multiple new loans or credit cards in rapid succession. Applying for multiple credit cards in quick sequence or at the same time can ding your credit score unnecessarily, for instance.\nBecause hard inquiries can temporarily reduce your credit score, it's wise to only apply for credit when you really need it. Although some credit scoring models count multiple inquiries for the same purpose made within a short period of time as one, several different types of inquiries made within a short period of time can ding your credit score or cause lenders to worry that you are experiencing financial distress.\nIt's also a good idea to avoid loan or credit applications for six months to a year before you apply for a mortgage or car loan, so your application reflects your best possible credit score.\nOnce you're ready to seek a loan, however, it's OK to submit applications to multiple lenders to shop for the best combination of interest rates and fees. You don't have to worry that doing so will mean a cumulative hit on your credit scores: The FICO® Score☉ and VantageScore models are designed to allow for rate shopping on loans, so they treat multiple inquiries related to loans of similar type as one, as long as they occur within a short time of one another. To play it safe, keep your rate shopping within a two-week period. END
 TITLE: What Are Inquiries On Your Credit Report? CONTENT: How to Remove Hard Inquiries\n----------------------------\nYou should check your credit reports from all three credit bureaus regularly—at least once each year—which you can do for free at AnnualCreditReport.com. You can also check your Experian credit report for free anytime. One thing to look for is any hard inquiry you don't recognize. Unexplained hard inquiries, while rare, can lower your credit scores—but more importantly, they can be signs of criminal activity.\nIf you see a hard inquiry you don't recognize, reach out to the creditor in question, using the contact information included in your credit report. Suspicious inquiries aren't always connected to illegitimate activity: An unfamiliar creditor may turn out to be the lending partner of a retailer where you applied for a credit card or a dealership where you applied for an auto loan, for instance.\nIf you confirm a hard inquiry is connected to fraudulent activity such as someone applying for credit with your information, take these steps:\n*   Report it to the appropriate law-enforcement agencies.\n*   Consider protecting your credit reports with a fraud alert or security freeze.\n*   Dispute the inquiry to have it removed from your credit report. END
 TITLE: How to Dispute Credit Report Information CONTENT: TransUnion and Equifax have their own processes for disputing credit reports, but Experian provides three methods for submitting disputes:\n*   **Online**: Get access to your Experian credit report and initiate a dispute at the Experian [Dispute Center](;phx=disable&op=FRCD-ASK-ART-102-MDL-XXXXXXX-XX-EXP-VMAC-DIR-817XXX-21273X-XXXXX) (more on that below). There is no cost to you for using this service.\n*   **By phone**: To initiate a dispute by phone, you'll call the number displayed on your Experian credit report. If you'd like to have a copy of your credit report delivered to you by mail, call 866-200-6020.\n*   **By mail**: You can dispute without a credit report by writing to Experian, P.O. Box 4500, Allen, TX 75013. (Printing out Dispute by Mail instructions can streamline the process; you can also scan the completed form and submit it electronically to Experian.com\/upload). END
 TITLE: How to Dispute Credit Report Information CONTENT: Step-by-Step Guide for Disputing Online\n---------------------------------------\nThe quickest and easiest way to dispute your Experian credit report is to check your credit report online and submit corrections through the online [Dispute Center](;phx=disable&op=FRCD-ASK-ART-102-MDL-XXXXXXX-XX-EXP-VMAC-DIR-817XXX-21273X-XXXXX).\nYour Experian credit report is divided into sections with the following headings: Personal Information, Accounts, Inquiries and, possibly, Public Records (not all credit reports contain public records entries). Information that could be hurting your credit may appear under an additional section with the heading Potentially Negative.\nIf you've found inaccurate information on your Experian credit report, these steps will help you complete your dispute online:\n1.  **Go to the Dispute Center for details on the dispute process.** The Experian Dispute Center is your source for correcting credit report information that you consider incomplete or inaccurate. Once you've had a chance to read through the information there, click \"Start a new dispute\" to view your credit report and select an entry to dispute.\n2.  **Indicate the reason for each dispute.** Select the reason for each dispute from the dropdown box. Some entries may ask you to type in explanatory information, and in certain cases, you will be directed to provide documentation to verify the correction.\n3.  **Review and submit the dispute.** Double-check your dispute request, revise the details if you wish, and then click Submit. You'll see a confirmation page when the dispute is filed successfully, and an \"Upload a document\" link you can use to submit scanned pages to support your dispute.\n4.  **Let the dispute process play out.** Experian will send you emails when your dispute has been opened, provide updates as appropriate during the process, and let you know when your dispute results are available. You can also view these notes in the Alerts section of the Dispute Center. Once completed, your dispute results will be available in the Completed section of the Dispute Center. Generally all disputes are resolved within 30 days.\nWhen necessary, Experian will contact data furnishers (the original source of disputed information, such as a lender or other business) to verify the information you are disputing. Note that information verified as accurate cannot be removed from your credit report. END
 TITLE: How to Dispute Credit Report Information CONTENT: What Happens After You Submit Your Dispute?\n-------------------------------------------\nAfter you've submitted a dispute, Experian goes to work to resolve the issue. The data furnisher (for example, your bank or a credit card issuer) will be asked to check their records. Then one of three things will happen:\n*   Incorrect information will be corrected.\n*   Information that cannot be verified will be updated or deleted.\n*   Information verified as accurate will remain intact on your credit report. END
 TITLE: How to Dispute Credit Report Information CONTENT: How to Track Your Dispute Status\n--------------------------------\nOnce you've submitted your dispute, Experian will send you alerts via email whenever there is a status update. If you already have an account with Experian, you can also view your dispute alerts in the main Alerts section of your Experian account. Alerts you'll receive while Experian processes your dispute include:\n*   **Open**: This indicates the dispute process has been initiated.\n*   **Update**: Your dispute investigation has been completed and your credit report is being updated with the results.\n*   **Dispute results ready**: Your credit report has been updated with the results of the dispute investigation. END
 TITLE: How to Dispute Credit Report Information CONTENT: Possible Dispute Outcomes\n-------------------------\nWhen the dispute process is complete, Experian will display the outcome in the Alerts section of your Experian account. Here are possible outcomes you may see and what they mean.\n### Disputes Related to Accounts or Public Records\n*   Updated: This can mean a couple different things, such as:\n    *   The information you disputed has been updated.\n    *   The information you disputed might have been verified as accurate by the data furnisher, but other information on your account unrelated to your dispute has been updated.\n*   Deleted: The disputed item was removed from your credit report.\n*   Processed: The disputed item was updated or deleted from your credit report.\n*   Remains: The company reporting the information has certified to Experian that the information is accurate, so the item has not changed.\n### Disputes Related to Your Personal Information or an Inquiry\n*   Added: This item was added to your credit report.\n*   Updated: The information you disputed has been updated on your credit report.\n*   Address Updated: This may appear to you as Deleted, as your address is updated to the current address.\n*   Deleted: The item was removed from your credit report.\n*   Processed: The item was either updated or deleted.\n*   Remains: The company reporting the information has certified to Experian that the information is accurate, so the item has not changed. END
 TITLE: How to Dispute Credit Report Information CONTENT: How Disputing Impacts Credit\n----------------------------\nFiling a dispute with one or all of the credit bureaus has no direct impact on your credit scores. But once the dispute process is completed, any changes to your credit reports could lead to changes in your credit scores.\nWhether your score goes up, down or remains the same depends on what you're disputing and the outcome of the dispute. Removal of mistakenly reported negative information, such as late payments or unpaid collections accounts, could lead to credit score improvements. On the other hand, corrections to your personal information, while important to maintaining accurate credit tracking, have no impact on credit scores. END
 TITLE: How to Dispute Credit Report Information CONTENT: What to Do if You Disagree With the Outcome of Your Dispute\n-----------------------------------------------------------\nIf you don't agree with the results of your dispute, here are some additional steps you can take:\n*   **Contact the information source(s).** Your best next step is to contact the entity that originally provided the disputed information to Experian and offer proof their information is incorrect. The source may be the lender or financial institution that issued you a loan or credit, but it could also be a collection agency or government office. Contact information for each source appears on your credit report, and you can use it to reach out to them.\n*   **Add a statement of dispute to your credit report.** A statement of dispute lets you explain why you believe the information in your credit report is incomplete or inaccurate. Your statement will appear on your Experian credit report whenever it's accessed or requested by a potential lender or creditor, so they may ask you for more details or documentation as part of their review or application process. To add a statement of dispute, go to the Dispute Center, choose the item in dispute, and select Add a Statement from the menu of dispute reasons.\n*   **Dispute again with relevant information.** If you have additional relevant information to substantiate your claim, you can submit a new dispute. If you're filing the dispute online, follow the steps listed above for using the Dispute Center, and use the upload link to provide your supporting documentation.\nA dispute with additional relevant information can also be submitted by mail to Experian at P.O. Box 4500, Allen, TX 75013.\nRegularly checking your credit reports for accuracy and disputing any errors you discover can help ensure your activity is tracked correctly, and that you get the credit score you deserve based on your credit habits. END
 TITLE: Credit Repair: How to “Fix” Your Credit Yourself CONTENT: What Is the Credit Repair Organizations Act?\n--------------------------------------------\nCredit repair companies dispute negative information found on your credit reports. But in the past, some of these companies would overstate what they could do for consumers to drum up business.\nThe Credit Repair Organizations Act (CROA) is a federal law that became effective on April 1, 1997, in response to a number of consumers who had suffered from credit repair scams. In effect, the law ensures that credit repair service companies:\n*   Are prohibited from taking any payment from a consumer until they fully complete the services they promise.\n*   Are required to provide consumers with a written contract stating all the services to be provided as well as the terms and conditions of payment. Under the law, consumers have three days to withdraw from the contract.\n*   Are forbidden to ask or suggest that you mislead credit reporting companies about your credit accounts or alter your identity to change your credit history.\n*   Cannot knowingly make deceptive or false claims concerning the services they are capable of offering.\n*   Cannot ask you to sign anything that states that you are forfeiting your rights under the CROA. Any waiver that you sign cannot be enforced.\nThe CROA adds transparency and due diligence to the credit repair process, making it less likely that consumers will be taken advantage of. However, regulators have still found wrongdoing among credit repair companies.\nThe Consumer Financial Protection Bureau has sued several credit repair companies over the years for requesting prohibited upfront fees, misleading customers about their ability to fix credit and more. END
 TITLE: Credit Repair: How to “Fix” Your Credit Yourself CONTENT: Can You Pay to Have Your Credit Fixed?\n--------------------------------------\nIf your credit file has information you feel is incorrect, credit repair companies may offer to dispute the information with the credit reporting agencies on your behalf. Credit repair companies typically charge a monthly fee for work performed in the previous month or a flat fee for each item they get removed from your reports. However, Experian does not charge consumers or require any special form to dispute information, so this is something you can do on your own at no cost.\nIf you're on a monthly subscription, the cost is typically around $75 per month but can vary by company. The same goes for paying a fee for each deletion, but that option typically runs $50 each or more.\nThat said, it's important to keep in mind that credit repair isn't a cure-all—and in many cases it crosses the line into unethical or even illegal measures by attempting to remove information that's been accurately reported to the credit bureaus. While these companies may try to dispute every piece of negative information on your reports, it's unlikely that information reported accurately by your lenders will be removed.\nAnd again, credit repair companies can't do anything that you can't do on your own for free. As a result, it's a good idea to consider working to fix your credit first before you pay for a credit repair service to do it for you. END
 TITLE: Credit Repair: How to “Fix” Your Credit Yourself CONTENT: There is no quick fix for your credit. Information that is negative but accurate (such as missed payments, charge-offs or collection accounts) will remain on your credit report for seven to 10 years. However, there are steps you can take to start building a more positive credit history and improve your credit scores over time. END
 TITLE: Credit Repair: How to “Fix” Your Credit Yourself CONTENT: How Long Does It Take to Rebuild Credit?\n----------------------------------------\nIt's hard to say with certainty how long it takes to rebuild credit because each person's credit history is different. If you've had credit difficulties in the past, how long it will take to rebound depends in part on the severity of the negative information in your credit report and how long ago it occurred. While some actions can have an almost immediate effect—such as paying down credit card balances—others may take months to make a significant positive impact.\nIf you're disputing information in your credit report you believe is fraudulent or inaccurate, the investigation can take up to 30 days. If the credit reporting agency finds your dispute valid, the information will be removed from your credit report, and your score will reflect that change as soon as it's calculated again.\nIf you're making payments or reducing your credit card balances, don't worry if your credit report isn't updated right away. Creditors only report to Experian and other credit reporting agencies on a periodic basis, usually monthly. It can take up to 30 days or more for your account statuses to be updated, depending on when in the month your creditor or lender reports their updates.\nIt's critical that you check your credit score regularly to keep track of your progress and make sure the right information is being reported over time. As you build a positive credit history, over time, your credit scores will likely improve, and you'll have a better chance of qualifying for favorable credit terms when you need to borrow again. END
 TITLE: Credit Repair: How to “Fix” Your Credit Yourself CONTENT: How to Get Extra Help With Your Credit and Debt\n-----------------------------------------------\nIf your debt is manageable, consider consolidating it via a personal loan or balance transfer credit card.\nIn some cases, debt consolidation loans can provide lower interest rates and reduced monthly payments, as long as you qualify and stick to the program terms. With a balance transfer card, you can typically get an introductory 0% APR promotion, during which you can pay down the balance interest-free. Just be mindful not to continue charging on the original card once the balance is transferred.\nIf your debt feels overwhelming and your credit isn't good enough to get a balance transfer card or a low-interest personal loan, it may be valuable to seek out the services of a reputable credit counseling agency. Many are nonprofit, and you can typically get a consultation with personalized advice for your situation at no cost.\nYou can review more information on selecting the right reputable credit counselor for you from the National Foundation for Credit Counseling.\nCredit counselors can also help you develop a debt management plan (DMP) with unsecured debt like credit cards. With this arrangement, you'll make your monthly debt payments to the credit counseling agency, and it will disburse the funds to your creditors. The agency may also be able to negotiate lower monthly payments and interest rates.\nIf the credit counselor negotiates settled amounts that mean you pay less to your creditors than was originally owed, your credit score could take a hit. In addition, your credit report may denote that accounts are paid through a DMP and were not paid as originally agreed, which may be viewed negatively by lenders. However, using a DMP may not negatively impact your credit history when you continue to make payments on time as agreed under the new terms. END
 TITLE: Credit Repair: How to “Fix” Your Credit Yourself CONTENT: Keep Track of Your Credit After You've Reached Your Goal\n--------------------------------------------------------\nOnce you've done the work to rebuild your credit history, you may be tempted to move on and focus on something else. While you likely won't need to focus as much on your credit score as you used to, it's still a good idea to keep an eye on it.\nMonitoring your credit will help you spot any potential issues that could cause your credit score to drop again. It'll also give you a heads up if someone commits identity theft, so you can address it before it gets out of hand.\nWith Experian's free credit monitoring tool, you'll get access to your FICO® Score☉ powered by Experian data and also an updated copy of your Experian credit report. You'll also get real-time alerts about new inquiries and accounts, suspicious activity and changes to your personal information. END
 TITLE: Understanding Your Experian Credit Report CONTENT: Personal Information\n--------------------\nThis information is reported to Experian by you, your creditors and\/or other sources. Each source may report your information differently, which may result in variations of your name, address, Social Security number and so on. For example, if you sign one application with your middle initial and another without, both variations of your name may appear on your credit report. This is used for identification purposes only, so these variations will not have any impact on your credit score. Here are some examples of the types of personal information you'll see on your credit report: END
 TITLE: Understanding Your Experian Credit Report CONTENT: Accounts\n--------\nAccounts in a credit report include revolving credit accounts and installment loans. This information is reported to the credit bureaus by your creditors. Accounts in good standing reflect your creditors' reports that you have satisfactorily met the terms of your agreements with them and all payments have been made on time. Lenders are not required to report account information to the credit reporting companies. Some lenders may choose to report to only one or two of the three major credit reporting companies (Experian, TransUnion and Equifax), and some choose not to report to any. Therefore, it is possible to have an account that does not appear on your credit report. This section may also include up to two years of your monthly balances on an account if it has been reported by your creditor. Here are some examples: END
 TITLE: Understanding Your Experian Credit Report CONTENT: Collections\n-----------\nWhen an account becomes seriously past due, the creditor may decide to turn the account over to an internal collection department or sell the debt to a collection agency. Once an account is sold to a collection agency, the collection account can then be reported as a separate account on your credit report. Collection accounts have a significant negative impact on your credit scores. Here's how collection accounts will appear on your report: END
 TITLE: Understanding Your Experian Credit Report CONTENT: Public Records\n--------------\nBankruptcy is the only public record that will appear on your credit history. Bankruptcy is a legal proceeding under which a person is provided relief from debts they are unable to pay. There are two primary forms of bankruptcy filed by consumers: Chapter 7 and Chapter 13. They are called \"chapters\" because they are defined by chapters in the bankruptcy law. In a Chapter 7 bankruptcy, you do not repay any of the debt owed. Under Chapter 13 bankruptcy, you are responsible for paying back a portion of the debts that you owe through a debt repayment plan.\nIf your report contains public records, the Public Records section includes items from courts that Experian may have obtained through LexisNexis Risk Data Management Inc., a third-party vendor. You may contact them at LexisNexis Consumer Center, P.O. Box 105615, Atlanta, GA 30348-5108, or by visiting END
 TITLE: Understanding Your Experian Credit Report CONTENT: Credit Inquiries\n----------------\nWhen applying for credit or financing, or as a result of a collection attempt, a hard inquiry may appear on your credit report. Hard inquiries stay on your credit report for two years. Soft inquiries are usually initiated by others, such as companies making promotional offers of credit or your lender conducting periodic reviews of your existing credit accounts. Soft inquiries also occur when you check your own credit report or when you use credit monitoring services from companies like Experian. These inquiries do not impact your credit score. Soft inquiries are not disputable but are available here for reference.\nInquiries are not currently disputable online through the Dispute Center. If you believe an inquiry is the result of identity theft, the inquiry can be disputed by phone with the help of an Experian Specialist. You can find the support number at Experian's Dispute Center. Here's how inquiries will appear on your credit report: END
 TITLE: Understanding Your Experian Credit Report CONTENT: Medical Information, Disputing and Your Rights\n----------------------------------------------\n### Medical Information\nBy law, Experian cannot disclose certain medical information (relating to physical, mental or behavioral health or condition). And while we do not collect or display medical information as part of your credit history, you may see the name of a medical provider listed as the original creditor on a collection agency account (such as \"Cancer Center\"). Although you can see the name of the original creditor that the collection debt was purchased from, it will display to your lenders and others viewing your credit report simply as \"medical payment data.\" Consumer statements included on your report at your request that contain medical information are disclosed to others.\n### Disputing Information in Your Credit Report\nIf you feel that an item is being reported incorrectly, you may dispute it. We will generally process your dispute by sending it to the furnisher of the information or to the vendor who collected the information from a public record. The fastest and easiest way to dispute most information is online at Experian's Dispute Center. Be advised that written information or documents you provide with respect to your disputes may be shared with the creditor who is reporting the information you are disputing.\nLearn more about How to Dispute Credit Report Information.\nKnow Your Rights\n----------------\nThe Fair Credit Reporting Act (FCRA) is a federal law that helps to ensure the accuracy, fairness and privacy of the information in consumer credit bureau files. The law regulates the way credit reporting agencies can collect, access, use and share the data they collect in your consumer reports. END
 TITLE: What You Can Do to Avoid Identity and Credit Fraud CONTENT: What to Do if You Believe You're a Victim of Fraud\n--------------------------------------------------\nIf you believe you are a victim of fraud, there are steps you can take to protect your credit, and Experian is available with help and advice, including step-by-step instructions with steps to take for recovery.\nAmong the first steps to take if you believe your credit or finances have been compromised is to safeguard your credit so criminals can't apply for loans or credit cards in your name. Tools for this include:\n*   **Fraud alerts**: A fraud alert asks lenders who view your credit report to verify your identity before processing a credit application or issuing credit in your name.\n*   **Credit freezes**: A credit freeze, or security freeze, restricts access to your credit file until you remove, or \"thaw,\" the freeze. END
 TITLE: What You Can Do to Avoid Identity and Credit Fraud CONTENT: What Is the Difference Between a Fraud Alert and a Security Freeze?\n-------------------------------------------------------------------\nThere's more detailed information about fraud alerts, security freezes and the differences between them here, but the basic rundowns of the two credit protection measures are as follows:\n*   **Fraud alerts** expire after a period of one year or seven years, depending on the type of alert, but may be renewed indefinitely. A fraud alert allows you to apply for credit in the usual way, but may delay the approval process somewhat until your identity can be confirmed by the lender. It is often more convenient for users who plan to seek new loans or credit in the near future.\n*   **Credit freezes**, while preventing unauthorized access to your credit information, also block legitimate credit checks. That means you must thaw your credit before applying for new loans or credit cards. This option may be more convenient for users such as retirees who foresee little need for new loans or credit accounts. A credit freeze remains in place indefinitely until you remove it. END
 TITLE: What You Can Do to Avoid Identity and Credit Fraud CONTENT: How Fraud Can Happen\n--------------------\nCredit fraud and identity theft can take many forms. The various types of fraud differ chiefly in what personal credentials are involved and the means by which that information is stolen.\nPersonal data routinely targeted by criminals includes:\n*   Social Security numbers\n*   Driver's licenses or other government-issued photo IDs\n*   Credit cards, debit cards and related account numbers\n*   Passwords to social media, e-commerce and banking accounts\nThe many ways criminals obtain personal data include (but are not limited to):\n*   **Phishing scams**: By means of email, phone calls, text or social media messaging, criminals present themselves as an authority you can trust and try to trick you into disclosing personal data. When in doubt, cease communication and reach out to the company or agency yourself. By responding to a suspicious message, clicking a link or opening a file, you might give an identity thief a way in.\n*   **Data breaches**: By hacking into commercial databases, criminals sometimes obtain troves of individuals' personal data in large batches, which they either use for their own purposes or sell to other criminals. If a vendor or financial institution alerts you that your data has been breached, consider a fraud alert or credit freeze. You can also sign up for a credit monitoring service that will alert you whenever there's new activity on your credit accounts.\n*   **Physical theft**: Stolen wallets and purses—and the credit cards and ID information they contain—can open up a world of opportunity for credit fraudsters. It's a good idea to keep an inventory of the items you carry routinely, and information on whom to contact if they're lost or stolen. END
 TITLE: What You Can Do to Avoid Identity and Credit Fraud CONTENT: How to Keep Your Information Safe Online\n----------------------------------------\nSafeguarding personal data online requires vigilance. It may require you to take steps that fly in the face of online shopping convenience, but that can help you avoid major hassles in the long run:\n*   **Avoid storing your credit card information** at e-commerce sites, to reduce vulnerability to data breaches and minimize the damage that can occur if someone steals your account password.\n*   **Develop good online security habits**, by creating strong passwords, using unique passwords for each account and changing them often. Where it's available, take advantage of two-factor authentication, which confirms your identity via voice call or text message as part of your account login.\n*   **Be smart about online shopping in public** by avoiding public Wi-Fi networks and taking care that others can't observe or overhear you as you enter account numbers or other personal information.\nThe best way to reduce your risk of credit fraud is to be vigilant and do your best to protect your personal information. Experian offers a wealth of advice to help in this effort, and also offers many resources in case you become an unfortunate victim.  \n### Fraud Prevention Resources\n*   What to Know About Credit Card Fraud Protection  \n    General fraud protection methods are similar across major credit card issuers, but some offer features that stand out. Here’s what you need to know.\n*   What Is Credit Fraud?  \n    Credit fraud is the use of victims' personal information and credit standing to borrow cash or buy goods or services on credit, without repaying the debt.\n*   How to Prevent Debit Card Fraud  \n    Reviewing bank statements regularly and reporting fraud immediately can help you minimize loss from debit card fraud.\n*   What Should You Do When Your Identity Is Stolen: Credit Freeze or Fraud Alert?  \n    Discover your best options after finding suspicious activity on your credit report.\n*   The Many Different Forms of Identity Theft  \n    There are many different types of identity theft and fraud. Some lesser-known culprits could wreak havoc on your financial life if gone undetected.\n*   Four Ways to Reduce the Risk of Identity Theft  \n    There’s no way to eliminate the threat of identity theft, but there are steps you can take to reduce your exposure to it. Here’s how to do it.\n*   The Unexpected Costs of Identity Theft  \n    Identity theft brings a host of financial, practical and emotional costs. Prevention tactics, monitoring and resolution support can minimize negative impact.\n*   What Is a Fraud Alert?  \n    A fraud alert can protect against unauthorized access to your credit files without creating major obstacles to your ability to apply for credit yourself. END
 TITLE: What Is Identity Theft? CONTENT: How Identity Theft Happens\n--------------------------\nIdentity theft is a broad term that applies any time someone steals your personal information, such as your Social Security number, and uses it to create a new account, make a purchase or commit other fraud.\nDue to the nature of technology and the internet, your personal information is always at risk. If you're not carefully monitoring your credit file, you may not notice you've been victimized until the damage is already done.\nHere are 10 of the most common ways identity thieves get hold of your data:\n### 1\\. Data Breaches\nA data breach happens when someone gains access to an organization's data without authorization. The most common types of information stolen in data breaches include full names, Social Security numbers and credit card numbers.\nIn 2018, there were 1,244 data breaches in the U.S., and more than 446 million records were exposed, according to the Identity Theft Resource Center.\nBecause people have so many accounts with various businesses and other organizations, it's virtually impossible to keep your information safe from a data breach, but there are steps you can take to minimize your risk.\n### 2\\. Unsecure Browsing\nFor the most part, you can browse the internet safely, especially if you stick to well-known websites. But if you share any information on an unsecure website or a website that's been compromised by hackers you could be putting your sensitive information directly in the hands of a thief.\nDepending on your browser, you may get an alert if you try to access a risky website.\n### 3\\. Dark Web Marketplaces\nThe dark web is often where your personally identifying information ends up after it's been stolen. Hackers may not necessarily be stealing your information to use it for themselves, but will instead choose to sell it to others who have potentially nefarious intentions.\nThe dark web is a hidden network of websites that aren't accessible by normal browsers. People who visit the dark web use special software to mask their identities and activity, making it a haven for fraudsters. If your information ends up on a dark web marketplace, anybody could buy it, putting your identity in more danger.\n### 4\\. Malware Activity\nMalware is malicious software that's designed to wreak all sorts of havoc. Fraudsters may use malware is to steal your data or spy on your computer activity without you knowing.\n### 5\\. Credit Card Theft\nOne of the simplest forms of identity theft is credit card theft. If a thief can gain access to your credit card information, they can use it to make unauthorized purchases.\nCommon ways credit card theft occurs are through a data breach, physical theft, credit card skimmers and via online retail accounts where card information is stored.\n### 6\\. Mail Theft\nSince long before the internet, identity thieves have been combing through the mail to find documents that held personal information. Bank and credit card statements and any other document you send or receive through the postal system can be intercepted and used to gain access to your data.\nThe mail you throw away also can leave you vulnerable, so be sure to shred any old mail that may contain personal information.\n### 7\\. Phishing and Spam Attacks\nSome scammers use email and text messages and other forms of electronic communication to steal your sensitive information. The message often looks like it's coming from a reputable source and asks victims to give up one or more types of information.\nFor example, a bogus email made to look like it's from your bank may include a link that directs you to a spoof website that looks just like the one it's mimicking. Once there, the website may ask you for a username and password, or to input credit card information or your Social Security number. If something seems suspicious, it might be an attempt at identity theft.\n### 8\\. Wi-Fi Hacking\nIf you use your computer or phone on a public network—airport, department store or coffee shop Wi-Fi—hackers may be able to \"eavesdrop\" on your connection.\nThis means that if you type in a password, bank account or credit card number, Social Security number or anything else, an eavesdropper can easily intercept it and use it for their own purposes.\n### 9\\. Mobile Phone Theft\nSmartphones are a treasure trove of information for identity thieves, especially if your apps allow you to log in automatically without a password or fingerprint. If someone manages to steal and unlock your phone, it could allow them to view the information found in your apps, as well as in your emails, text messages, notes and more.\nMake sure your phone locks with a secure passcode, biometric screening is set up properly and your passwords aren't stored in plain text anywhere on your phone.\n### 10\\. Card Skimming\nSome thieves use a skimming device that easily can be placed over a card reader on an ATM or a fuel pump without looking out of the ordinary. When somebody swipes a debit or credit card at a compromised machine, the skimmer reads the information from the card's magnetic stripe and either stores it or transmits it. A criminal can then use this information to make purchases. END
 TITLE: What Is Identity Theft? CONTENT: How Identity Theft Can Affect You\n---------------------------------\nOnce a thief has your information, they can do several things with it, including:\n*   Open fraudulent credit cards.\n*   File phony health insurance claims.\n*   Use your existing bank or credit card accounts to make unauthorized purchases.\n*   Sell it to other thieves.\n*   File a fraudulent tax return or steal your tax refund.\n*   Access your financial accounts and steal your money.\n*   Commit child identity theft using your child's information.\nDepending on the type of theft that occurs, and how the criminal uses your information, identity theft can result in immediate financial loss, damage to your credit and emotional distress. It can also take anywhere from less than a day to several months or even years to resolve the issue.\nAs you work on recovering from identity theft, you may end up dealing with late payments, medical bills, and even IRS penalties requiring investigations and long-term assistance if you are a tax identity theft victim. It can also result in losing account access, having your personal accounts taken over by thieves and general loss of data privacy. END
 TITLE: What Is Identity Theft? CONTENT: How to Check for Identity Theft\n-------------------------------\nYou can't completely avoid the possibility that your identity may be stolen, but you can take action to spot potential fraud before it becomes a major problem.\nTo check for identity theft, keep an eye on your credit reports. While you can view each one for free every 12 months through AnnualCreditReport.com, you can view a summary of your reports more regularly through various free and paid credit monitoring services.\nAs you check your report, watch for tradelines that you don't recognize or remember opening. Also, keep an eye on your credit score—a sudden inexplicable drop can be a dead giveaway that something is wrong.\nHere are some other telltale signs that someone may have stolen your identity:\n*   You aren't receiving important mail such as bills or checks.\n*   You get bills for items you didn't order or statements for credit cards you didn't sign up for.\n*   You're denied credit, despite having an excellent credit rating.\n*   You have unauthorized bank transactions or withdrawals.\n*   You've received notice that your personal information may have been compromised in a data breach.\n*   Your electronic tax filing is denied.\n*   You receive unauthorized authentication messages by text or email for unknown accounts.\n*   You get an email from an organization that says your account has been recently accessed and it wasn't you.\n*   You receive a bill or an explanation of benefits for health care that you didn't seek. END
 TITLE: What Is Identity Theft? CONTENT: What to Do if You Think You're a Victim\n---------------------------------------\nIf you have even an inkling that you've fallen victim to identity theft, the most important thing to do is to limit the potential damage. If a credit card or debit card was stolen, contact the card issuer and your bank immediately—some banks may even allow you to lock your account through your mobile app until you can report the fraud.\nNext, double-check your credit reports with the three credit bureaus (Experian, TransUnion and Equifax) to confirm any type of unusual activity and get help dealing with the theft. If you find something is amiss, consider locking or freezing your credit.\nAlternatively, you can set up a fraud alert, which notifies lenders that you've been a victim of identity theft so they can take extra measures to verify your identity.\nRemember, identity theft is a crime, so it's also a good idea to contact your local law enforcement agency. While authorities may not be able to do much, they can take reports and be on the alert for suspicious behavior that could involve your name or address.\nBefore you do report the crime, reach out to the Federal Trade Commission to file a report. The agency will provide steps you need to take and paperwork to file reports—including how to deal with police reports—and help you dispute fraudulent charges.\nBeing a victim of identity theft is a harrowing experience. It can take months and many hours of filling out forms and working with agencies and businesses to recover your identity once it is stolen. END
 TITLE: What Is Identity Theft? CONTENT: Diligence Pays Off\n------------------\nRecognizing the signs of identity theft and taking steps to prevent it can save you heartache, stress and loss.\nAs you check your credit report and score regularly, watch out for suspicious transactions, accounts and notifications, and act fast when something is off. If you're diligent, you'll be in a better position to catch identity theft early before it ruins more than just your day. END
 TITLE: What Is a Fraud Alert? CONTENT: What Does a Fraud Alert Do?\n---------------------------\nThe purpose of a fraud alert is to add a layer of security to the loan application process, with the goal of preventing criminals from opening bogus credit accounts or taking out loans in your name. The first step that typically occurs when a creditor processes your credit application is a credit check, and that requires access to your credit file at one of the national credit bureaus (Experian, TransUnion or Equifax). A fraud alert pauses the credit check process and instructs the creditor to confirm your identity before it accesses your report.\nRequesting a fraud alert at any one of the credit bureaus automatically applies alerts to your credit files at all three bureaus. Each fraud alert deactivates itself on a preset expiration date. You can have a fraud alert lifted before its expiration date if you wish, but you must contact each credit bureau individually to do so.\nThere are three types of fraud alerts, and you can request any one that applies to you:\n*   **A temporary fraud alert.** Also known as an initial fraud alert, this type of alert lasts one year and then expires. You can add one to your credit report anytime, for any reason. You can renew it as many times as you like.\n*   **An active-duty fraud alert.** This alert protects active-duty service members on assignment away from home, and also lasts one year unless it's removed earlier.\n*   **An extended fraud victim alert.** Extended alerts last seven years and are designed for victims of credit fraud or identity theft. If you've been victimized and have reported the crime to authorities, you can obtain an extended fraud alert by submitting a copy of the identity theft report you filed with law enforcement. END
 TITLE: What Is a Fraud Alert? CONTENT: Does a Fraud Alert Affect Credit?\n---------------------------------\nA fraud alert has no impact at all on the contents of your credit report, or on the credit scores derived from the data stored in your credit report. It therefore can neither help nor hurt your ability to qualify for a loan or credit card.\nA fraud alert can hinder your ability to get instant approval for credit card or in-store credit offers you encounter online or at retail outlets. The automated approval systems used for these offers may not be equipped to handle the identity-confirmation steps fraud alerts require. So while you cannot not be disqualified for a credit offer due to a fraud alert, you may have to contact retailer reps by phone or in-person to complete your application. END
 TITLE: What Is a Fraud Alert? CONTENT: When Does It Make Sense to Get a Fraud Alert?\n---------------------------------------------\nA fraud alert is a good precaution to take if you're worried about potential misuse of your personal information. If you suspect your credit card number or Social Security number has been stolen or exposed in a data breach, for instance (or if you'll be on a military assignment and unlikely to be monitoring your credit activity closely), placing a fraud alert is a good way to quickly add a measure of security to your credit files. You only need to notify one credit bureau to activate one, and it's only slightly more time-consuming to deactivate fraud alerts than it is to put them in place.\nIn addition, a fraud alert can prevent unauthorized access to your credit files without significantly hindering authorized access to them. It's easy to remove fraud alerts if you discover your data was not compromised, or to just let them lapse if you find you aren't getting any indication that fraudsters are applying for credit in your name.\nIf you're certain your data has been compromised and you're seeking an extended fraud victim alert, you may want to consider a credit freeze instead. A credit freeze is a more severe measure—it prevents all access to your credit report unless you remove it or authorize temporary access to your files, and it never expires unless you remove it. A credit freeze can be inconvenient for individuals who are actively applying for new loans or credit cards, but it can be useful for those who don't soon plan to seek new credit, and don't want to worry about renewing a fraud alert upon its expiration. END
 TITLE: What Is a Fraud Alert? CONTENT: How to Place a Fraud Alert\n--------------------------\nPlacing a fraud alert at any of the national credit bureaus automatically attaches notices to your credit files at all three bureaus.\nTo place a fraud alert through the Experian Fraud Alert Center, visit the webpage, select the type of alert you want, and follow the instructions on how to upload or mail in copies of necessary proof of identity.\nYou'll need to provide:\n*   A copy of a state-issued photo ID\n*   Proof of address, provided via a piece of mail such as a utility or insurance bill\n*   An identity-theft report, if you're seeking an extended fraud victim alert END
 TITLE: What Is a Fraud Alert? CONTENT: Protect Yourself\n----------------\nA fraud alert is a useful option to keep in mind in case you feel your personal data has been compromised. It can protect against unauthorized access to your credit files without creating major obstacles to your ability to apply for credit yourself. END
 TITLE: How to Freeze Your Credit CONTENT: What Is a Credit Freeze?\n------------------------\nA credit freeze, also known as a security freeze, is a tool designed to help protect you from fraud and identity theft. It limits access to your credit report unless you lift the freeze, or \"thaw\" your credit. Having a freeze in place won't affect your credit scores, but it will prevent your credit report from being accessed to calculate scores unless you first lift the freeze.\nFreezing your credit can help prevent identity thieves and other criminals from using stolen personal information (your Social Security number, for instance) to apply for new credit in your name. Since checking your credit report and credit scores are typically the first steps in processing any credit application, freezing your credit at the national credit bureaus (Experian, TransUnion and Equifax) can help stop unauthorized credit accounts from being opened.\nThe major drawback of credit freezes is that, along with preventing unauthorized credit applications, they also block authorized checks. This can complicate legitimate applications for loans, credit cards and other things because you'll need to unfreeze your reports before the process can move forward.\nYou must contact each national credit bureaus individually to freeze (or unfreeze) your credit reports. They'll do so for free upon request. END
 TITLE: How to Freeze Your Credit CONTENT: How Can I Place a Free Credit Freeze?\n-------------------------------------\nExperian, TransUnion and Equifax maintain dedicated webpages where you can set up credit freezes. When requesting a credit freeze online, the bureau may supply, or have you create, a personal identification number (PIN) or password to use when thawing or reactivating your freeze.\nFreeze My Experian Credit File\nTo freeze your Experian credit report by mail, you can write to Experian Security Freeze, P.O. Box 9554, Allen, TX 75013. Written requests should include the following:\n*   Your full name including middle initial (and generation)\n*   Social Security number\n*   Complete addresses for the past two years\n*   Date of birth\n*   One copy of a government issued identification card, such as a driver's license, state ID card, etc.\n*   One copy of a utility bill, bank or insurance statement, etc.\nMake sure that each copy is legible and displays your name and current mailing address and the date of issue. Send copies of any documents you wish to provide to us and always retain your original documents. END
 TITLE: How to Freeze Your Credit CONTENT: How Can I Lift a Credit Freeze?\n-------------------------------\nThe same webpages used to set up credit freezes can be used to remove or suspend them. All three bureaus also provide instructions for lifting a freeze by phone, using the password or PIN connected to your freeze at each bureau.\nIn addition to your ability to permanently unfreeze your credit, you may have the option to lift the freeze temporarily, either by granting one-time access to a specific creditor, or by indicating a length of time (one day, one week, etc.) you want the freeze to be suspended. Policies vary by bureau so make sure you understand what your options are before you begin the process.\nWhen you enter your password or PIN online or by phone, your credit will be thawed within one hour. If you lose your password or PIN, the credit bureaus will need to verify your identity, which will delay the process. END
 TITLE: How to Freeze Your Credit CONTENT: Can I Freeze My Child's Report?\n-------------------------------\nIf your minor children have credit files, it can be a good precaution to freeze those files. Underage children ordinarily have credit files only if you've made them an authorized user on a credit card (to jumpstart their efforts at building a credit history) or as a result of identity theft.\nTo freeze a credit report for someone under 16, you'll need to prove you have authority to make that request. Proof of this authority can include:\n*   A court order\n*   A lawfully executed and valid power of attorney\n*   A document issued by a federal, state or local government agency in the United States attesting to your parental relation to the minor\n*   A birth certificate\nYou can thaw the files when the children come of age and are ready to begin seeking credit on their own. END
 TITLE: How to Freeze Your Credit CONTENT: How Does a Credit Freeze Compare With a Fraud Alert?\n----------------------------------------------------\nWhile credit freezes restrict access to credit reports indefinitely, fraud alerts are temporary. An initial alert remains for one year, while an extended alert remains for seven. And while freezes must be removed before most access is granted, fraud alerts give lenders access to your credit reports and ask that they verify your identity before processing credit applications made under your name.\nCompared with the process of lifting and reapplying a credit freeze at all three credit bureaus anytime you need to allow access to your report and scores, a fraud alert offers a more convenient and potentially safer alternative. A fraud alert stays in place while you continue to use your credit as normal, and won't need to be lifted like a credit freeze would.\nUnlike a credit freeze, when you request a fraud alert at any one of the three credit bureaus (Experian, TransUnion or Equifax), alerts are automatically placed at all three bureaus. Removing fraud alerts before they expire will require you to contact each bureau separately. END
 TITLE: How to Freeze Your Credit CONTENT: Locking Your Credit\n-------------------\nAnother alternative to freezing your Experian credit report is to lock it. The CreditLock feature of Experian IdentityWorks℠ Premium service lets you instantly lock and unlock your credit file, so you can give lenders access anytime you're ready.\nCreditLock also notifies you in real time if anyone applies for credit in your name while your credit file is locked.\nYou control CreditLock using a smartphone app or at Experian's web site. END
 TITLE: How to Freeze Your Credit CONTENT: Does a Credit Freeze Hurt Your Credit Score?\n--------------------------------------------\nA credit freeze has no effect on your ability to qualify for loans or credit cards, but a freeze can prevent a creditor's evaluation of your credit application. Unless you thaw your credit before you submit a loan application, the lender cannot use your credit report or credit score to gauge your qualifications as a borrower. That could delay the processing of your application.\nFreezing, locking or applying for fraud alerts on your credit reports are all options for protecting your credit history after confirmed or suspected identity theft or fraud.\nIf a credit freeze is something you'd like to apply to your credit reports and scores, learn how to request one at the Experian's Security Freeze Center. END
 TITLE: How to Freeze Your Credit CONTENT: Additional Services\n-------------------\n**Credit Lock**: An additional protection or alternative to a security freeze is to lock your Experian credit file. Experian CreditLock allows you to easily and instantly control access to your Experian credit report in real time with one click without having to remember your PIN.\n**Identity Theft Protection**: To see other ways in which Experian can help keep your credit and identity secure, learn about our Identity Theft Protection solutions.\n**Free Dark Web Scan**: Get a one-time scan for your Social Security number, email and Phone Number, that also includes a free Experian credit report every 30 days on sign in, and with free credit monitoring and alerts.\n**Check If a Minor has a Credit Report**: See if your child has a credit file that has potentially been compromised with a free check. END
 TITLE: What to Know About Employment and Your Credit CONTENT: Can an Employer Access My Credit?\n---------------------------------\nThe Fair Credit Reporting Act (FCRA) lists who can obtain your credit report and for what purpose. Employers, for instance, are allowed to run a credit check for hiring and promotion decisions, but only if the applicant or employee has given written permission for them to do so.\nIn fact, there are only a few exceptions to the requirement to obtain permission before pulling a credit report, including:\n*   In response to a court order or federal grand jury subpoena.\n*   In connection with your application for a license or other benefit granted by the government, when consideration of financial responsibility is required by law.\n*   In connection with a child support determination (in certain circumstances).\n*   In connection with a credit or insurance transaction not initiated by you, when a firm offer of credit or insurance is extended and certain other restrictions are met.\n*   For the purposes of a potential investor assessing the risk of a current credit obligation.\nAlso, creditors are allowed to run soft credit checks, which don't impact your credit, to send you pre-screened offers.\nRemember, though, that while your employer can view a modified version of your credit report with your permission, they will not have access to your credit score. END
 TITLE: What to Know About Employment and Your Credit CONTENT: Will Past Employers Appear on My Credit Report?\n-----------------------------------------------\nIt is possible for current and past employers to show up on your credit report if they were listed on a credit application you submitted. Creditors commonly ask for employment information, which then may get passed along to the national credit reporting agencies and added to your credit file.\nThat doesn't mean all your past employers will be listed, though. Lenders aren't required to send employment information to the credit bureaus, so some choose not to. As a result, a credit report won't necessarily provide a complete history of your past jobs.\nIt's also important to note that your past and current employment doesn't impact your credit score in any way—the same goes for your income.\nOther personal information you might find on your credit reports includes your name (including various aliases you've used in the past), Social Security number, date of birth and address. END
 TITLE: What to Know About Employment and Your Credit CONTENT: Can My Credit Prevent Me From Getting a Job?\n--------------------------------------------\nA bad credit history could hurt your chances of getting a job, especially if you're applying for a role in finance or management or a job with the government that includes security clearances.\nThat said, 47% of employers in the U.S. don't run a credit check on any employee candidates, according to the NAPBS. Also, many states and municipalities have laws against employers using an applicant's credit history against them.\nIf you're thinking of applying for a job, talk with the hiring manager to find out what's involved with the background check process, so you can know what to expect. END
 TITLE: What to Know About Employment and Your Credit CONTENT: How Is My Credit Report Protected?\n----------------------------------\nBecause information found in your credit report is sensitive, federal law prohibits employers (and most others) from accessing it without your written authorization.\nAdditionally, before an employer takes an adverse action based on your credit report, it must provide you with a copy of your report, along with a summary of your rights under FCRA. You'll then have the opportunity to review the report and explain any negative information before the employer finalizes its employment decision.\nExperian strongly recommends that employers do not deny employment solely on the basis of a credit report.\nWhen an employer obtains a copy of a credit report for employment purposes, that soft inquiry will appear on your credit reports. Those inquiries won't, however, show up on the version employers see. This policy protects your privacy because other employers or creditors won't be informed about job-related activities.\nFinally, inquiries for employment purposes don't affect your creditworthiness or credit scores. END
 TITLE: What to Know About Employment and Your Credit CONTENT: What Else Do Employers Check?\n-----------------------------\nThere are several different types of background checks you may undergo when applying for a new job or a promotion. Depending on the employer and type of position, that can include:\n*   Criminal background check\n*   Fingerprint background check\n*   International background check\n*   Drug test\n*   Sex offender registry check\n*   Office of Inspector General background check (health care workers only)\n*   Social media background check\n*   Professional license background check\nAgain, you typically need to provide permission for an employer to run various background checks. You can ask beforehand what will be checked, so you know how much of your personal information is being shared. END
 TITLE: What to Know About Employment and Your Credit CONTENT: Build Good Credit to Improve Employment Opportunities\n-----------------------------------------------------\nDepending on the industry you're in, you may never have to deal with a credit check by an employer. However, if you're hoping to obtain a role in management, financial services or for a government agency with security clearance, it's best to work on improving and maintaining a good credit history.\nStart by checking your credit score to see where you stand, then review your credit report to see which areas need some improvement. Also focus on making all your debt payments on time, keeping your credit card balances relatively low and avoiding new credit unless it's absolutely necessary. END
 TITLE: Identity Theft Victim Assistance CONTENT: Review Your Credit Report and Accounts\n--------------------------------------\nIf you suspect someone's seeking or opening a bogus credit account in your name, get copies of your latest credit reports from each national credit bureau (Experian, TransUnion and Equifax). You can obtain free reports from all three bureaus at AnnualCreditReport.com. Each bureau is required by law to provide a free report if you're the victim of identity theft, and Experian also provides monthly reports through CreditWorks℠ Basic, a free service that also offers basic credit monitoring that alerts you anytime your Experian credit report changes.\nInformation on lenders who've asked for credit checks in response to new credit applications will appear in the \"Inquiries\" section of your credit report. If you see an inquiry that's unrelated to an application you've made, contact the lender and ask for details on the application.\nLoans and credit cards opened in your name will be listed in the \"Accounts\" section of the credit report. If there are any entries there that you don't recognize, contact the lender immediately so they can begin investigating the matter.\nSometimes unrecognized credit report entries prove innocuous—inquiries or accounts from a bank you don't recognize could be the lender financing your new cellphone, for instance—but if there's no explanation for an entry, work with the lender to get it resolved. END
 TITLE: Identity Theft Victim Assistance CONTENT: File an Identity Theft Report\n-----------------------------\nIf a lender confirms they've received a credit application in your name, or issued a loan or credit to someone using your personal information, report the matter to the appropriate law enforcement agency immediately.\nA great starting place is the Federal Trade Commission's fraud-reporting website, IdentityTheft.gov. It provides step-by-step guidance on which authorities to notify concerning different types of identity theft and fraud. You can also contact fraud to the FTC by phone, at 877-ID THEFT (877-438-4338).\nOther authorities you may need to contact include:\n*   **Local law enforcement**: Start with the department with jurisdiction where you live. You may also need to contact or cooperate with other departments if crimes are believed to have been committed elsewhere.\n*   **The IRS**: If you think your Social Security number (SSN) has been stolen and misused, it's possible the thieves will file a bogus tax return in an attempt to claim your refund. You can check to see if this has occurred and report potential abuse at the Internal Revenue Service website or by phoning 800-908-4490.\n*   **The FBI**: If you believe your SSN has been stolen, or if you believe your personal data has been used to commit online fraud, file a report with the FBI's Internet Crime Complaint Center (IC3).\n*   **Your state's motor vehicles department**: If your driver's license is stolen, it could be used to obtain additional personal credentials including a birth certificate or Social Security Card, so report the loss immediately to your state motor vehicles department.\n*   **The U.S. State Department**: If your passport has been lost or stolen, it could fall into the wrong hands and be used to steal your identity. Contact the U.S. State Department passport agency at once.\n*   **The U.S. Postal Service**: If you or a relative have been the victim of fraud committed through postal mail, file a report with the Postal Inspection Service as soon as possible. END
 TITLE: Identity Theft Victim Assistance CONTENT: Place a Fraud Alert or Security Freeze\n--------------------------------------\nTo secure your credit reports and prevent unauthorized access to loans or credit in your name, you may choose to place a fraud alert or security freeze on your credit file. Fraud alerts instruct lenders and credit issuers to verify your identity before processing any credit applications made in your name, while credit freezes block potential new creditors (and others) from accessing your credit file at all. Both services are free.\nYou can read more about the differences between the measures and when either might be appropriate on our blog, but here's an overview: END
 TITLE: Identity Theft Victim Assistance CONTENT: Dispute Inaccurate Information\n------------------------------\nIf you've confirmed criminal credit activity, reported it to appropriate law enforcement and government agencies and secured your credit report with a credit freeze or fraud alert, you can then focus on getting the inaccurate information removed from your credit reports.\nEach of the national credit bureaus has its own procedure for requesting removal or correction of inaccurate information, a process known as a dispute. If the same inaccuracy appears on multiple credit reports, you'll need to submit disputes to each bureau separately to get its report corrected.\nWhen you submit a dispute to Experian, Experian takes the following steps:\n*   Experian verifies the information you've identified as fraudulent with the creditors or data furnishers that reported the information.\n*   Upon receipt of a valid police report or state-approved identity-theft form, which you can submit by mail or upload electronically at the Experian Fraud Center, Experian blocks alleged fraudulent information from view by creditors or others using your credit report to check your credit. This allows you to continue to apply for loans or credit without being penalized for fraudulent entries on your report.\n*   Experian must complete an investigation and report back to you within 30 days (or 45 days if information on your credit report is disputed). The report will indicate:\n    *   Whether lenders have verified the activity you reported as fraudulent (and what their investigation found).\n    *   Any action that has been taken in response to the lender's response to the verification request—including removal of fraudulent entries, revision of entries that reflected fraudulent activity, or (if the lender concluded there was no fraud) restoration of the disputed entries without change.\n    *   In case disputed credit-report entries are not changed to your satisfaction, the report will also provide information on pursuing your dispute further by working with the lender(s) in question. END
 TITLE: Identity Theft Victim Assistance CONTENT: Additional Identity Theft Resources\n-----------------------------------\nIf you suspect you are a victim of identity theft, here are some important contact information that can help you:\n*   Experian Fraud Division: 888-397-3742\n*   Equifax Fraud Division: 800-525-6285\n*   TransUnion Fraud Division: 800-680-7289\n*   The U.S. Department of Justice's Identity Theft Resource Center.\nUnauthorized credit activity could be a sign of identity theft or other fraud, and the key to avoiding fraud and other problems is to act quickly. Experian is available to help, and there are many other resources you can tap to address potential fraud before it does financial harm—or to undo any damage that's been done. END
 TITLE: Steps to Take if You Are a Victim of Credit Card Fraud CONTENT: What Is Credit Card Fraud?\n--------------------------\nCredit card fraud is a form of identity theft in which criminals make purchases or obtain cash advances using a credit card account assigned to you. This can occur through one of your existing accounts, via theft of your physical credit card or your account numbers and PINs, or by means of new credit card accounts being opened in your name without your knowledge. Once they're in, thieves then run up charges and stick you and your credit card company with the bill.\nCredit card issuers are acutely aware of this scourge, and are continually developing new methods to thwart unauthorized card usage. At the same time, however, resourceful fraudsters (including international organized crime syndicates) keep finding work-arounds for new security measures.\nBecause card issuers are well-versed in dealing with card fraud, it's unlikely that being defrauded will cost you money out-of-pocket over the long haul, but necessary investigations can take months and, as discussed at greater length below, unaddressed credit card fraud can do major damage to your credit reports and scores.\nDealing with credit card fraud can cost you a great deal of time and aggravation, and the theft of hundreds of millions of dollars every year adds to the overall cost of using credit cards (in fees and interest rates) for all account holders.\nCredit card fraud is a form of a broader category of crime known as identity theft, by which criminals use your personal information to impersonate you and hijack your finances. In addition to credit card information, identity thieves can use credentials including your name, date of birth, address and Social Security number to take over bank accounts, take out loans in your name, and apply for bogus tax refunds, unemployment benefits and Social Security checks—taking advantage of benefits you've earned. END
 TITLE: Steps to Take if You Are a Victim of Credit Card Fraud CONTENT: Look Out for the Common Types of Credit Card Fraud\n--------------------------------------------------\nCredit card fraudsters are eager to use new technologies in their schemes for ferreting out credit card numbers and PINs, adding to tried-and-true methods as old as credit cards themselves.\nCredit card fraud methods include:\n*   **Card theft**: Snatching a card from a restaurant table, bar or wallet (or just grabbing an entire wallet or purse) is a classic way to get access to someone's credit card. Swiping newly issued cards from mailboxes is a variation on this ploy. If your card goes missing, or if you're notified that you should have received a card that never arrived, inform the card issuer immediately.\n*   **Account takeover**: In this approach, a criminal contacts your card issuer and uses your personal information to change access PINs, passwords, mailing address and the like so that they control your account and you can no longer get into it. Depending on how often you use your card, this can take a while to notice, and even longer to sort out with the card issuer. Some credit card companies enable setup of a verbal password that isn't documented anywhere else to prevent this form of theft.\n*   **Cloned cards**: Devices called \"skimmers\" that fit over card readers on gas pumps and at retail sales terminals can allow thieves to grab your card number when you swipe your card, then make a duplicate for their illicit use. EMV chip\\-equipped cards have made this process much more difficult.\n*   **Card-not-present theft**: This refers to the fraudulent use of a credit card account that doesn't require possession of a physical card. Commonly a method used to make online purchases, it requires only that the thief knows your name, account number and the card's security code. In recent years, millions of users' information has been exposed through data breaches at retailers and other companies that maintain large card-number databases, and illicit websites traffic in lists of card-user data. END
 TITLE: Steps to Take if You Are a Victim of Credit Card Fraud CONTENT: Detecting and Fending Off Credit Card Fraud\n-------------------------------------------\nIt's possible to detect credit card fraud early by routinely checking for signs of shady activity on your credit accounts:\n*   **Review your card statements monthly**, whether you get them online or in hard-copy form, looking carefully for unexpected purchases or cash advances. If you see any unfamiliar purchases, contact the card issuer immediately to dispute the charges.\n*   **Check your credit reports** from all three national credit bureaus (Experian, TransUnion and Equifax). You can download your reports for free at AnnualCreditReport.com. Once you have your reports, look for unfamiliar inquiries—credit checks associated with applications for new credit—and loan or credit card accounts that you didn't open. If you see any credit report entries that look fishy, use the contact information in the credit report to notify the creditor in question. They can give you more information, begin an investigation and may ultimately notify the credit bureaus to remove the account. You can also file a credit report dispute if you believe there are inaccurate entries on your credit reports.\nIf you suspect you have been the victim of identity theft, consider visiting the Experian Fraud Center to place a free fraud alert on your credit report. When a fraud alert is in place, potential new lenders are asked to verify your identity before issuing any new accounts in your name. You only have to contact one credit bureau to have a fraud alert put in place on all three of your credit reports. You can cancel the alert at any time.\nEnrolling in a credit monitoring or identity theft protection service such as those available from Experian, automates the process of checking your credit reports and accounts. They also notify you by text or email when credit checks are performed, so you can spot suspicious activity and act quickly if you suspect fraud. END
 TITLE: Steps to Take if You Are a Victim of Credit Card Fraud CONTENT: Reporting the Credit Card Fraud to Law Enforcement\n--------------------------------------------------\nIf you've confirmed that you're a victim of credit card fraud, you may want to report the crime to law enforcement. To begin this process, visit the Federal Trade Commission's IdentityTheft.gov website. The site will then give you the opportunity to file an identity theft report, which is used by law enforcement agencies in their investigation. You can then follow up with local law enforcement, as advised by your creditors.\nNot every case of identity theft necessitates getting the police involved, but doing so can help assist in investigations of theft and might help you recover belongings that were stolen along with your credit cards. END
 TITLE: Steps to Take if You Are a Victim of Credit Card Fraud CONTENT: How Can Credit Card Fraud Impact My Credit?\n-------------------------------------------\nWhen credit card fraud goes undetected, thieves have a chance to run up charges in your name—which they never intend to pay. This can be damaging to your credit profile. In most cases, you'll be able to clear up these matters by proving you didn't authorize the charges. In the meantime, however, anyone checking your credit may see fraudulent credit card accounts, missed payments or increased balances that are appearing as a result of fraud. The presence of these fraudulent items could paint a less-than-flattering picture of your credit habits. Card fraud can put negative marks on your credit reports, including:\n*   **Late payments**: If a fraudster opens a credit card account in your name and never pays a bill, late payments could be reported to the credit bureaus in your name and your credit scores could suffer. Payment history, the most important factor in credit scores, accounting for 35% of your FICO® Score☉ .\n*   **High credit utilization**: If a fraudulent credit card, or one of your own cards, is being used to run up bogus charges, your credit utilization—the percentage of your borrowing limit represented by your outstanding balances—could skyrocket. Credit utilization is nearly as important as payment history in determining your credit scores, and a high utilization could cause your credit scores to suffer.\nIf this happens to you, contact the creditor who reported the fraudulent information to the credit bureaus and they should be able to clear it up. And, again, you might consider disputing the information with the credit bureaus. END
 TITLE: Steps to Take if You Are a Victim of Credit Card Fraud CONTENT: Protecting Yourself From Credit Card Fraud\n------------------------------------------\nThe growing prevalence of credit card fraud means there's no surefire way to avoid becoming a victim, but common-sense precautions can help you avoid it:\n*   Guard your wallet or purse carefully when you're out and about, and don't leave credit cards unattended.\n*   Keep credit cards you don't use in a safe place at home, instead of carrying them with you, and never carry your Social Security card unless you must (when obtaining a passport, for example), and put it back in safekeeping when you're done using it.\n*   When shopping online, make sure the website is secure (look for \"https:\/\/\" at the start of the site address), and skip the option of storing your card number at the website.\n*   If asked to provide a credit card number, Social Security number or other personal information over the phone, verify you are talking to a person or company you trust. If the request comes from someone who called you, ask yourself if the organization they claim to represent should already have the information they seek. (Banks and credit card issuers already know your account numbers and wouldn't ask you for them, for instance.) If in doubt, insist on calling them back and use a verifiable number.\n*   Take a look at the Experian Fraud FAQ and Fraud Alert Center for more information and tips on protecting yourself from credit card fraud. Experian will offer support by providing a free copy of your credit report, investigating disputed credit report information, and if fraud is verified, remove the information from your credit report.\nFraud is an ugly side effect of the convenience of using credit cards. Knowledge and vigilance can help you stop it, and if you become a victim, acting quickly and decisively can help limit the damage. END
 TITLE: How to Build and Maintain Good Credit at Every Stage of Life CONTENT: How to Build Credit When You're College\n---------------------------------------\nCollege, for many, is an ideal time to begin building credit. You'll have a few years of practice and credit history behind you by the time you graduate from school, when you may want to buy a car or get your own rewards credit card.\nIdeally, while in college, you'll build positive payment history on an account that doesn't come with a lot of risk of accruing debt. For instance, you could consider opening a secured credit card, which typically comes with a comparatively low credit limit—say, $250 or $500. You'll need to pay a deposit usually in the same amount as your credit limit, and you'll use the card like you would a traditional card. To benefit the most from a secured card, make small charges and pay them off right away, or at least by the end of the month. That way you'll give your credit score the best shot at improving.\nAfter a period of time of responsible use, your issuer might convert the card to an unsecured credit card, potentially with a higher credit limit. But you'll learn how to spend within a budget and pay off your purchases on time. Another credit-building option is joining another person's account as an authorized user, which lets you make charges on the account and benefit from the primary user's positive payment history. But you won't be responsible for paying the bill each month. This can be a good option if you know the primary user manages their credit card well, paying all bills on time and maintaining low balances. END
 TITLE: How to Build and Maintain Good Credit at Every Stage of Life CONTENT: How Employment Can Affect Your Credit\n-------------------------------------\nIt's possible that a potential employer will check your credit during the application process. They must get written permission to do so, and it's most common for them to check credit when the job requires you to manage money or receive a government security clearance. Employers can't see your credit score, though they can see your payment history and the credit report factors that contribute to your score.\nIf you've listed work information, such as your employer's name on a previous application for credit, your employment history could show up on your credit report. This additional personal data can help lenders confirm your identity when they're considering you as a potential borrower. But your income and the length of your positions won't appear on your credit report.\nLenders will commonly request your income and calculate your debt-to-income ratio (DTI) when evaluating your credit application, so in this way your employment could indirectly affect your ability to get credit. But your credit score will not be affected simply by the type of work you do or whether you were fired from a job, for instance. END
 TITLE: How to Build and Maintain Good Credit at Every Stage of Life CONTENT: Does Marriage Have an Impact on Your Credit?\n--------------------------------------------\nGetting married doesn't mean automatically sharing credit reports. Your past credit history will remain separate from your spouse's, and you'll maintain your own credit score. But any accounts that you decide to open jointly will appear on both credit reports.\nIf you cosign a student loan for your spouse, for example, you will be responsible for that debt if your spouse is unable to make the payments. The debt itself could also increase your personal DTI. A spouse's bad credit won't affect yours directly, meaning your score won't decrease merely by marrying them. But if you want to get a mortgage together, one partner's poor score could make it more difficult to qualify for a loan or get the lowest interest rates.\nChanging your name after marriage won't result in a new credit report or score. But once you update your last name with the Social Security Administration, your banks and the lenders you have accounts with, the name change will be reflected on your credit reports too. Your given name will still appear on your reports, listed as a former name. END
 TITLE: How to Build and Maintain Good Credit at Every Stage of Life CONTENT: Should You Start Building Your Kid's Credit?\n--------------------------------------------\nIt's possible to help your child start building credit when they're quite young, which can give them the opportunity to enter adulthood with positive credit history. Several credit card issuers allow teens and young adults to become authorized users on their parents' credit cards, which can help responsible high school and college students learn about credit early. But consider your child's maturity level and understanding of saving and budgeting before providing them the opportunity to make purchases on a card that you'll have to pay off.\nHaving kids can affect your own credit, often indirectly: You may take on debt for a larger house, take out student loans for your children or pay for increasing expenses with a credit card. According to a 2019 Experian analysis, the more children a consumer had, the more debt they carried. But consumers with four or more children also had higher credit scores than those with one, two or three children, according to the analysis. Monitoring your credit closely and making payments on time can prevent periods of high debt loads from leading to poor credit. END
 TITLE: How to Build and Maintain Good Credit at Every Stage of Life CONTENT: The Impact of Divorce on Your Credit\n------------------------------------\nJust like getting married, getting divorced in itself does not directly affect your credit score. Your credit report also won't show whether you're married or not. Still, it's important to keep close track of how joint debt is handled in a divorce, because a spouse's missed payments on a debt you share will affect your credit report and score.\nEven if a divorce decree says otherwise, you both remain legally responsible for a shared mortgage, car loan, student loan or credit card account you opened together. Creditors consider you both responsible for the debt as a joint account owner, which means your credit can be affected by payment history, and the debt will remain on your credit report. If your credit allows it, you may consider closing joint accounts or splitting them up. Closing accounts can have a temporary, negative impact on your credit score, but the peace of mind you'll gain will likely make doing so worthwhile.\nIn the nine community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin), debt that one spouse took on during the marriage is considered joint debt, which can make both spouses responsible for it if they divorce. Understand the rules in your state and discuss with a lawyer your options for making an agreement to divide up your debts. END
 TITLE: How to Build and Maintain Good Credit at Every Stage of Life CONTENT: Is Your Credit Important When You Retire?\n-----------------------------------------\nRetirement planning can require a lot of energy—and, of course, money—over a lifetime. It's important to build good credit and check it closely so you can enjoy retirement when you get there.\nStrong credit can help you qualify to refinance your mortgage when rates are low, downsize to a smaller home or finally buy a dream vacation property. If you need to rely on credit cards in a pinch—for medical expenses, for instance—good credit can allow you to pay off debt fast with a low-rate card like a 0% intro APR balance transfer credit card.\nThe simple fact of earning less money in retirement can lead to a dip in credit scores, or to more difficulty qualifying for credit. If you experience a drop in income, you might find it harder to get new loans or credit cards, unless you have no debt at all and your debt-to-income ratio hasn't changed. END
 TITLE: How to Build and Maintain Good Credit at Every Stage of Life CONTENT: What Happens to Your Debt and Credit After You Die?\n---------------------------------------------------\nWhen a person dies, that information must first get flagged to the credit bureaus so they can note it on the credit file. This process can help prevent identity theft in the deceased person's name.\nOften, family members of the deceased will alert creditors that the borrower has died and that the account should be closed. Lenders then let the credit bureaus know. Accounts for people listed as deceased will be deleted after a year, and a credit file will disappear once there are no accounts associated with it.\nIf you die with debt in your name, what happens to it depends on whether it's backed by collateral or not. In the case of a mortgage or car loan, the lender has the ability to collect on your debt using the value of those assets. Your estate may pay off those debts or sell property to settle them. Unsecured debt like credit card balances will often also be paid by your estate before your heirs can get money you left them—but only if your estate has the money to pay off the debt. If not, the lender will not be repaid in full. END
 TITLE: How to Build and Maintain Good Credit at Every Stage of Life CONTENT: Credit Over a Lifetime\n----------------------\nCredit will stick with you at each stage of your life, starting from the moment you take on your first loan or credit card account. You will likely encounter ups and downs during your credit journey. But as long as you monitor it and take steps to repair it when necessary, credit can be a tool that you'll come to appreciate each time you approach a new financial milestone. END
 TITLE: How to Manage Your Credit During a Divorce CONTENT: How Will Getting Divorced Affect Your Credit?\n---------------------------------------------\nYour credit report doesn't show your marital status, so a divorce won't appear anywhere in your credit history. It's also not a factor that affects your credit score. But that doesn't mean a divorce can't impact your credit indirectly if it, for example, causes you to fall behind on your debt payments.\nThe first thing to know is that divorce doesn't automatically split up the credit you and your former spouse established together. Even if your debts (and the responsibility for paying them) are assigned as part of your divorce decree, creditors still hold you liable for the debt. This also means account information, including negative items such as late payments and high credit utilization, can be reported to the credit bureaus and added to your credit report if you are still associated with the account. So if your ex agrees to make payments on a joint account and then doesn't, those late or missed payments can show up on your credit report as well as theirs. If they default, you are jointly responsible for their debt. END
 TITLE: How to Manage Your Credit During a Divorce CONTENT: How Do You Manage Debt in a Divorce?\n------------------------------------\nEven though the divorce itself isn't relevant to your credit status, the way you resolve and manage your joint debt and credit accounts can make a difference. Your good credit can survive a divorce. For the sake of your financial—and emotional—equilibrium, it helps to take early steps to manage and protect your credit.\n*   **Create a plan.** As soon as possible—even before you separate, if you can—try to work together to take stock of your joint credit accounts, loans and other bills and decide who will take charge of paying each one. If savings accounts are intertwined, figure out a way to divide assets, possibly by determining how much each person contributed to the account.\n*   **Close or separate your accounts.** To simplify things, pay off and close joint accounts wherever possible. When that's not feasible, talk to your lender or card issuer about converting to an individual account by removing your ex-spouse as an account holder or authorized user. You also want to remove your name from any open accounts your ex plans to continue using.\n*   **Be responsible.** Until your accounts are fully separated, you and your ex have the potential to run up joint debt and\/or damage each other's credit. Your divorce process will go far more smoothly and your good credit has a much better shot at staying intact if you act responsibly now. While you are sorting things out, make at least your minimum payments on time. And don't rack up any debt you don't intend to repay yourself.\nMonitoring your credit is a good practice during this time as well. Not only will it help you check on the status of your accounts (whether you've closed or converted them), but it also allows you to see any missed payments or other negative information—as well as any inquiries or new accounts. END
 TITLE: How to Manage Your Credit During a Divorce CONTENT: Can You Remove a Mortgage After a Divorce?\n------------------------------------------\nIf both you and your ex are named on your mortgage, credit bureaus cannot remove the account from your credit report. You are still liable for the loan, even if your divorce decree assigns responsibility for payment to your ex.\nContinuing to hold a mortgage with your former spouse isn't ideal. The loan will continue to show up on your credit report as well as theirs, possibly restricting either party's ability to get a new home loan in the future. If your ex makes late payments or—worse—defaults, your credit will be damaged as well. Having a joint mortgage is an ongoing responsibility you may prefer not to share, or may make things more difficult going forward.\nBut it isn't always simple to remove one spouse or the other from a mortgage. If you qualified for the loan together, your lender probably won't be willing to simply remove one party from the loan. Instead, you may have to refinance, sell your home or pay off the loan in order to make a clean break. END
 TITLE: How to Manage Your Credit During a Divorce CONTENT: How to Rebuild and Establish Your Credit Independently\n------------------------------------------------------\nIf you established credit before you got married and maintained a solid credit history and score throughout your marriage, you may emerge with your good credit intact. But if your credit was tied to your spouse—along with your income and assets—rebuilding or establishing credit can be a key challenge after divorce.\n*   **Start small and build.** Improving your credit score takes time. You may have to start with a small credit limit or even a secured credit card. Use your card for a few purchases and always pay your bills on time. After six months, you may be able to be approved for an unsecured card, or your card issuer might convert your account and refund your security deposit. If not, keep managing your card responsibly and try again in another six months.\n*   **Find a cosigner.** If you need help getting approved for a loan, consider asking a friend or family member with established credit to cosign. If your credit improves, you may be able to refinance on your own at a later time.\n*   **Maintain a positive payment history.** Your payment history is the single biggest factor in determining your credit score; it accounts for 35% of your FICO score. Even one late payment can set you back, so pay every bill on time.\nHelp may be available if you're having a hard time paying your bills. The nonprofit National Foundation for Credit Counseling (NFCC) can help you establish a budget and repay creditors. Or look for other nonprofit organizations that provide low- or no-cost credit counseling and financial management training. Just be wary of for-profit companies that charge a substantial fee in exchange for a \"quick fix\" to your credit problems. END
 TITLE: How to Manage Your Credit During a Divorce CONTENT: Moving Forward\n--------------\nDivorce is a financially tumultuous time. But if you take steps to protect your credit, sort out your loans and credit accounts, monitor your credit activity and score, and work to establish or rebuild your individual credit, you can keep your possibilities open while minimizing risk and damage. Weather this storm and get on with your financial life. END
 TITLE: How to Plan for Retirement CONTENT: Start Saving Immediately\n------------------------\nIf you haven't started saving for retirement yet, now is the best time to do it—before the years start slipping away. This applies whether you're in your 30s, 40s or 50s and even if you're nearing the traditional retirement age of 65.\nBy age 30, it's smart to have an emergency fund with enough to cover three to six months' worth of living expenses. Once you've set aside some money in your emergency fund (even if it's not fully funded), start saving money for retirement, especially if you don't have any retirement savings yet.\nOnce you hit the 40-year mark, your emergency fund should be well-established, and you should have some savings in a tax-deferred retirement account such as a 401(k) sponsored by your employer or an IRA that you set up on your own.\nAt age 50, you should have a healthy stockpile of money for retirement and, of course, a fully funded emergency fund.\nRegardless of your age, if you have no money saved for retirement, today is the day you should get started. Of course, everyone's circumstances are different, but keep in mind that retirement can last for 30 years or more.\nSaving even a small amount of money per month can bring you closer to achieving your retirement goals. Assuming an annual return of 6%, saving just $50 a month will put you at $3,506 in five years. Bump that up to $500 a month at 6%, and you're looking at 10 times that amount—$35,059—over a five-year period. Investment experts usually recommend carving out at least 15% of your gross income to put toward retirement. END
 TITLE: How to Plan for Retirement CONTENT: Choose Where to Store Your Funds\n--------------------------------\nAs we mentioned before, a 401(k) and an IRA are two options for your retirement savings. In fact, they're the two most common types of retirement accounts. Let's dig a little deeper into the 401(k) and IRA.\nSponsored by your employer, a 401(k)—or 403(b) for some nonprofit and other employers—lets you put some of your pretax income in a retirement account. The amount you select is deducted automatically from your paycheck before it hits your bank account. Investment options for a 401(k) include mutual funds and exchange-traded funds (ETFs). In some instances, your employer will match your contributions up to a certain amount, often as a percentage of your salary (like 3%).\nFinancial experts typically recommend earmarking at least 10% to 15% of your pretax income for your 401(k). But if you're 40 or over, you might want to aim for 20%.\nAs opposed to a 401(k), an IRA is a retirement account that you open on your own through a bank, credit union, investment firm or a mutual fund company. Two common kinds of IRAs are a traditional IRA and a Roth IRA:\n*   A **traditional IRA** enables you to contribute pre- or after-tax dollars. Your money grows tax-deferred, and withdrawals are taxed after age 59½.\n*   A **Roth IRA** allows you to contribute after-tax dollars. Your money grows tax-free, and you usually can withdraw money after age 59½ without paying taxes or penalties. END
 TITLE: How to Plan for Retirement CONTENT: Start Reducing Expenses Before Retirement\n-----------------------------------------\nSo, you might be wondering how you can come up with enough money to set aside for retirement. Two ways you can accomplish that are by creating a financial plan and reducing expenses. END
 TITLE: How to Plan for Retirement CONTENT: Monitor Your Credit\n-------------------\nProperly planning and managing your finances—including your retirement savings—depends, in part, on monitoring your credit. So, why is it important to keep on top of your credit ahead of retirement? Here are four reasons:\n1.  You don't want to carry a heavy load of debt that eats into your retirement income.\n2.  If you decide to downsize to a different house, your credit score will impact your approval for a mortgage and the interest rate and terms you're offered. You might want to downsize from a house you own to an apartment you rent. When reviewing your rental application, a landlord likely will review your credit.\n3.  You might be leaning toward refinancing a mortgage or auto loan. Healthy credit can help lower monthly payments and interest rates for these loans.\n4.  You might need to pay health care expenses with a credit card or loan. A strong credit record can boost your credit score and potentially lead to lower interest rates.\nKeep in mind that your retirement won't be reflected on your credit reports. These reports, which are used to calculate your credit scores, don't include information about your employment or income. END
 TITLE: How to Plan for Retirement CONTENT: Keep Track of Your Social Security Statement\n--------------------------------------------\nYour Social Security statement offers an estimate of the amount of Social Security benefits you could receive once you retire. It's one of the tools you can use to plot your retirement strategy. For instance, it can give you a better sense of how much money you should be putting into your 401(k) or whether you should open an IRA.\nTo check your Social Security statement, visit ssa.gov, click Menu at the top of the page and then click Social Security Statement on the left side of the page. END
 TITLE: How to Handle Credit and Debt After the Death of a Spouse CONTENT: Do I Need to Notify Credit Bureaus of My Spouse's Death?\n--------------------------------------------------------\nWhen your spouse dies, you'll need to notify lenders that accounts held in your spouse's name alone should be closed. If you have joint accounts, notify lenders that one party on the account is now deceased. Lenders will report your spouse as deceased when they send their next account update to the credit bureaus.\nCredit bureaus also receive periodic lists of newly deceased people from the Social Security Administration (SSA). Funeral homes generally notify the SSA of a death; if you want the funeral home to handle this for you, give them your spouse's Social Security number. You can also report the death to the SSA yourself by calling 800-772-1213 or visiting your nearest Social Security office in person.\nWhen a credit bureau receives notice of the death, your spouse's credit report will be flagged to indicate that he or she is deceased. If anyone attempts to apply for credit in your spouse's name, lenders will be alerted that they've passed away.\nIf you'd like to speed up the notification process and help ensure your spouse's identity is secure, you can notify the credit reporting agencies yourself. You only have to notify one of the major consumer credit bureaus—Experian, TransUnion or Equifax—and they will tell the others. Here's how to notify each credit reporting agency of a death:\n*   **Experian:** Mail a copy of the death certificate to Experian's Consumer Assistance Center, P.O. Box 4500, Allen, TX 7501, or upload it online.\n*   **TransUnion:** Mail a copy of the death certificate to TransUnion, P.O. Box 2000, Chester, PA 19016\n*   **Equifax:** Mail a copy of the death certificate to Equifax Information Services LLC, P.O. Box 105139, Atlanta, GA 30348-5139\nAlong with the death certificate, you'll need to provide the credit bureau with your spouse's legal name, Social Security number, date of birth and date of death. They'll also want your name, mailing address, and a copy of your driver's license or other government-issued identification. If someone else, such as the executor of your spouse's estate, is notifying the credit bureau, that person should provide a copy of their government-issued identification and a copy of the will, executor agreement or power of attorney documentation proving they are authorized to act on behalf of your spouse's estate. END
 TITLE: How to Handle Credit and Debt After the Death of a Spouse CONTENT: What Happens to Joint Accounts After a Spouse Dies?\n---------------------------------------------------\nCreditors cannot legally close a joint account or modify its terms just because one of the account holders has died. However, creditors typically ask you to reapply for credit in your own name. Based on this application, they will decide whether to continue extending credit or adjust your credit limit.\nSometimes, lenders will mistakenly report both spouses on a joint account as deceased. If this happens, you'll need to determine which creditor made the error and contact them to correct it.\nIf you live in a community property state, any credit accounts your spouse opened while you were married are automatically joint accounts, meaning you're responsible for these debts. Your spouse may have had credit accounts you weren't aware of or have forgotten about, so be sure to keep an eye on all incoming bills and pay them on time to avoid credit damage.\nPaying jointly held accounts on time is critical to maintaining your good credit. Making even one late payment can negatively affect your credit score and make it harder for you to get loans or credit cards in your own name in the future. END
 TITLE: How to Handle Credit and Debt After the Death of a Spouse CONTENT: Am I Responsible for My Deceased Spouse's Debt?\n-----------------------------------------------\nWhen your spouse dies, their debt survives, but that doesn't necessarily mean you're responsible for paying it. The debt of a deceased person is paid from their _estate_, which is simply the sum of all the assets they owned at death. If your spouse had a will, the executor they named in the will uses the estate to pay off creditors. If your spouse didn't have a will, a probate court judge will decide how to distribute their estate and will choose an administrator to carry out those decisions.\nIn general, you are not responsible for your spouse's debts unless you held a joint credit account (which is different from being an authorized user on your spouse's account); cosigned for a loan, debt or account; or live in one of the nine community property states—Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. (Alaska residents have the option to choose community property by signing a special agreement.)\nCommunity property states generally hold spouses responsible for one another's debts. However, laws differ from one community property state to another. If you're not sure what the law requires, consult an attorney familiar with estate law in your state.\nIf you signed or cosigned hospital admission papers or medical treatment authorizations, you may also be responsible for any medical bills your spouse incurred that their insurance doesn't pay. This depends on your state's laws and the specific documents you signed.\nIf your spouse's assets at the time of their death don't cover their debts, will you be forced to hand over the proceeds of their life insurance policy or tap their retirement account to pay the bills? Thankfully, certain assets—including life insurance policies, retirement plans, brokerage accounts and any assets held in a living trust—are protected from creditors and can't be pursued to pay debts after a spouse's death. Otherwise, the estate executor or probate administrator will refer to your state's probate laws to prioritize creditors and distribute payments accordingly until the money runs out. If there's not enough money to pay all the debts, some creditors will not get paid. END
 TITLE: How to Handle Credit and Debt After the Death of a Spouse CONTENT: Where to Look for Help\n----------------------\nAfter the death of a spouse, you may be a target of creditors seeking repayment for your spouse's debts. While it's legal for creditors to contact you for information about your spouse's debt, such as how to contact the estate executor, they cannot request payment for debts that aren't your responsibility. Debt collectors must follow federal, state and local laws, including the Fair Debt Collection Practices Act, when pursuing a debt. If you are being harassed by creditors, you can send a cease and desist letter, submit a complaint to the Consumer Financial Protection Bureau or your state's attorney general, or contact an attorney for help.\nHave you discovered your spouse had credit card debt or other debt you never knew about? Are you having trouble paying the bills on your own? Perhaps your spouse always handled the finances and you're feeling overwhelmed. A credit counselor can help you learn to handle your finances, make a budget and develop a debt management plan.\nCredit counseling agencies are usually nonprofit organizations; you can find them through the National Foundation for Credit Counseling, Financial Counseling Association of America or the U.S. Department of Justice's list of approved credit counseling agencies.\nWatch out for \"credit repair\" organizations that promise to wipe out your debt, recommend doing anything dishonest or charge a hefty fee. Legitimate credit counselors provide free or low-cost services and teach clients financial literacy, not just how to get out of debt. END
 TITLE: How to Handle Credit and Debt After the Death of a Spouse CONTENT: Maintain Your Credit for the Future\n-----------------------------------\nNow that you're on your own, being able to get credit cards and loans can be key to your financial security. Help protect your future by reviewing your credit reports. You can get them for free from all three major consumer credit bureaus through AnnualCreditReport.com. Your free credit report and score are also available for free directly through Experian. While you're at it, set up free credit monitoring to stay on top of any changes to your credit score and get alerts of suspicious activity. It's a great way to help maintain your own credit as you move into a new phase of your life. END
 TITLE: These Tips Can Help You Improve Your Credit CONTENT: Steps to Improve Your Credit\n----------------------------\nYour credit report shows how well you've managed your financial responsibilities over a certain time period. The information in your credit report determines your credit score, and the most commonly used credit score—the one calculated using the FICO® Score☉ model—ranges from 300 to 850. The higher your FICO® Score, the better (and the same goes for any other scoring model). Negative credit report information drops off over time, but positive information sticks around a bit longer, sometimes indefinitely. To establish a positive credit history and help improve credit scores:\n1.  Pay your bills on time. Because payment history accounts for 35% of your FICO® Score, this should be your top priority when focusing on improving credit. While you can't remove past missed payments, you can take steps to avoid them. And it's never too late to make a commitment to building a spotless payment history.\n2.  Set up a budget, and live within it. After payment history, credit utilization is the second most important factor, making up 30% of your FICO® Score. Experts recommend using no more than 30% of your available credit at any time, but those with the highest credit scores often use much less than that. Ideally, you'll pay off credit card balances completely each month—which likely also means making a budget and avoiding purchases that you can't comfortably afford that month.\n3.  Thoughtfully apply for new credit. Your credit score will suffer if you frequently apply for new credit cards or loans. Lenders may assume you're a risk if you're looking for more credit because you've maxed out the accounts you already have. Only apply for the credit you truly need, especially just before you seek out a mortgage or other major loan, where a drop in your score could cost you an approval.\n4.  Use personal data consistently. Providing complete, accurate and consistent identification on your credit applications helps set up your credit history correctly from the beginning. It also minimizes the chance that your credit file will be incomplete or mixed with another consumer's file. In the worst-case scenario, another consumer could accidentally—or fraudulently—use your personal information to establish credit accounts that end up on your credit report, and if they go unpaid, lower your score.\n5.  Avoid closing your oldest accounts. Length of credit history accounts for 15% of your FICO® Score. Lenders prefer to take on borrowers who have a wealth of experience managing credit, so long credit histories will contribute to high credit scores. If you're tempted to close old credit cards you no longer use, pause and consider keeping them open to maintain a longer credit history. But closing accounts can be advisable in certain circumstances, such as if the card carries a high annual fee or is otherwise problematic for your finances.\n6.  Look to professionals. If you need credit help or if you don't have time to develop your own plan, quality nonprofit credit counseling organizations can help consumers understand credit reports, contact creditors, manage debt and set up budgets. END
 TITLE: These Tips Can Help You Improve Your Credit CONTENT: How Long Does It Take to Improve Credit?\n----------------------------------------\nImproving credit won't happen overnight. Since credit history length is a crucial part of the equation, only consistently positive credit behavior will have a major impact. Negative information stays on your credit report for a long time—seven years for late and missed payments, for instance. The effect of these on your score will become less potent over time, but it will take regular positive information to balance it out and improve your score.\nKnow, too, that going to a credit repair company will not help improve credit scores. A credit repair company can't have accurate credit information taken off your report, even if it's hurting your scores. Everything one of these companies can do is possible to do on your own at no cost. You could end up paying hundreds to thousands of dollars for this unnecessary service.\nThe Credit Repair Organizations Act is a federal law that prohibits credit repair companies from taking payment from a consumer until the promised service has been provided. It also requires companies to give consumers a written contract explaining the services it will offer and the terms and conditions of payment. You have three days to withdraw from the contract. If you work with a credit repair company—which experts generally caution against—make sure you receive and understand the contract and make sure the company abides by it. END
 TITLE: These Tips Can Help You Improve Your Credit CONTENT: Does Paying Off Accounts in Collections Improve Credit Scores?\n--------------------------------------------------------------\nIn general, paying off an account in collections is a smart move, as it will close the chapter on the delinquent account and end contact with your creditor and debt collector. But the associated missed payments on the account will remain on your credit report for seven years, and the appearance of an account in collections could lead to denials when you apply for certain loans.\nWhen you pay off an account in collections, your balance will drop to zero, and some credit scoring models and versions will not factor this account into your credit score. That's a good thing: It means your credit score will likely increase, because the collection account alone is no longer a negative contributor to your score.\nBut that's only true for the FICO® 9 and VantageScore® 3.0 and 4.0 credit scores. So if a lender uses an older version to make a lending decision, paid collections accounts will still factor negatively into your score, and your score will not improve because you've paid off your balance.\nIt's still a positive move to pay off an account in collections. But an improved credit score may not be the No. 1 reason to do so. END
 TITLE: These Tips Can Help You Improve Your Credit CONTENT: Why Improving Your Credit Is Important\n--------------------------------------\nA good credit score can be a lifeline when you're focused on achieving certain milestones, like getting a mortgage, car loan or even an apartment. Lenders and landlords look at credit reports as evidence of your financial responsibility. Improving your credit so that it's in the good to exceptional range will give you access to the widest variety of loan and credit card options at the lowest interest rates.\nThink of a good credit score as reinforcement, or a bodyguard backing you up when you're ready to make a change or pursue a financial goal. If a relationship ends unexpectedly and you suddenly need to seek out a new apartment, knowing you have good credit can give you peace of mind, knowing you'll easily be able to qualify for a new place.\nOn the other hand, when your partner says they're ready to buy a home together, already having good credit can put you in a better position to agree that it's the right time—and you'll be able to jump into the housing search with enthusiasm, rather than feeling that you're not yet a strong candidate for a mortgage. END
 TITLE: These Tips Can Help You Improve Your Credit CONTENT: Good Credit Is Worth Working Toward\n-----------------------------------\nWhile it will take time, an improved credit score has the potential to improve your financial life, and potentially your day-to-day life if it can bring you closer to the things you want. Don't focus on the past if you're rebuilding damage credit. Know that it's possible to improve yours starting today, as long as you dedicate time and consistent practice to your goal. END
 TITLE: How to Improve Your Credit Score CONTENT: Steps to Improve Your Credit Scores\n-----------------------------------\nThe specific steps that can help you improve your credit score will depend on your unique credit situation. But there are also general steps that can help almost anyone's credit. END
 TITLE: How to Improve Your Credit Score CONTENT: How Long Does It Take to Rebuild a Credit Score?\n------------------------------------------------\nThere's no set timeline for rebuilding your credit. How long it takes to increase your credit scores depends on what's hurting your credit and the steps you're taking to rebuild it.\nFor instance, if your score takes a hit after a single missed payment, it might not take too long to rebuild it by bringing your account current and continuing to make on-time payments. However, if you miss payments on multiple accounts and you fall over 90 days behind before catching up, it will likely take longer to recover. This effect can be even more exaggerated if your late payments result in repossession or foreclosure.\nIn either case, the impact of negative marks will diminish over time. Most negative marks will also fall off your credit reports after seven years and stop impacting your scores at that point if not sooner. Chapter 7 bankruptcies can stay for up to 10 years, however.\nIn addition to letting time help you rebuild your scores, you can follow the steps above to proactively add positive information to your credit reports.\nYou may also hear about credit repair companies that offer to repair or \"fix\" your credit—for a price. It might seem tempting, but credit repair companies can't do anything that you can't do on your own for free. Similarly, you should be wary of so-called debt settlement companies that may encourage you to stop making payments in an attempt to try to \"settle\" the debt for less than you owe. Their plan can result in major credit score harm and may not even ultimately work to reduce your debt obligation. END
 TITLE: How to Improve Your Credit Score CONTENT: Establishing or Building Your Credit Scores\n-------------------------------------------\nDepending on your experience with credit, you might not have a credit report at all. Or, your credit report might not have enough information that credit scoring models are able to assign you a credit score.\nWith FICO® Scores☉ , you need to have at least one account that's six months old or older, and credit activity during the past six months. With VantageScore, a score may be calculated as soon as an account appears on your report.\nWhen you don't meet the criteria, the scoring model can't score your credit report—in other words, you're \"credit invisible.\" As a result, creditors won't be able to check your credit scores, which could make it difficult to open new credit accounts.\nSome people may be in a situation where they've only opened accounts with creditors that report to only one bureau. When this happens, they may only be scorable if a creditor requests a credit report and score from that bureau.\nIf you're brand new to credit, or reestablishing your credit, revisit step one above. END
 TITLE: How to Improve Your Credit Score CONTENT: How Credit Scores Are Calculated\n--------------------------------\nCredit scores are determined by computer algorithms called scoring models that analyze one of your credit reports from Experian, TransUnion or Equifax. Scoring models (and there are many) may use different factors, or the same factors weighted differently, to determine a particular score. However, consumer credit scores generally share a few similarities:\n*   Scores are calculated based on the information in one of your credit reports.\n*   Scoring models try to predict the likelihood that a borrower will be 90 days late on a bill in the next 24 months.\n*   A higher score indicates a person is less likely to fall behind on a bill, and vice versa.\nThe vast majority of lenders use credit scores calculated by FICO and VantageScore® scoring models. The most recent versions of their generic credit scores use a score range of 300 to 850—and a score in the mid-600s or higher is often considered a good credit score. (Generic means they're created for any type of lender. FICO also creates industry-specific scoring models for auto lenders and card issuers that range from 250 to 900).\nConsidering how different credit scores use the same underlying information to try and predict the same outcome, it might not be surprising that the steps you take to try to improve one score can help increase all your credit scores.\nFor example, making on-time payments can help all your credit scores, while missing a payment will likely hurt all your scores. There are several factors that can affect your credit scores. Here, we'll focus on the actions you can take to help improve your credit scores.\n> ### How to Get Your FICO® Score for Free\n> \n> Understand the reasons that help or hurt your FICO® Score, including your payment history, how much credit you are using, as well as other factors that influence your overall credit.\n> \n> [Get Your FICO® Score](;br=exp&show=true&op=FRSC-ASK-ART-100-INL-XXXXXXX-XX-EXP-VMAC-YYY-836XXX-21271X-XXXXX&dAuth=true) END
 TITLE: How to Improve Your Credit Score CONTENT: Credit Education Resources\n--------------------------\nContinue your credit education with our guides and resources:\n*   **What Affects Your Credit Scores?** Learn how different types of accounts and actions can impact your credit scores.\n*   **How to Calculate Credit Card Utilization**: Your credit utilization rate can have a big impact on your scores. The math is easy, but there are common misunderstandings about which numbers to use.\n*   **Credit Repair: How to \"Fix\" Your Credit Yourself**: Find out how you can improve your credit for free.\n*   **4 Simple Habits That Build Good Credit**: Follow these simple rules for building and maintaining good credit.\n*   **What Is a Bad Credit History and Rating?**: If your credit needs some work, learn more about why you may have a bad credit score and what you can do about it.\n*   **Which Debts Should I Pay Off First to Improve My Credit?**: Prioritizing certain bills can be important when you're trying to increase your credit scores.\n*   **Credit Myths**: Learn the truth and don't get caught off guard. END
 TITLE: A Debt Management Plan: Is It Right for You? CONTENT: A debt management plan is a type of repayment plan that's set up and managed by a credit counseling agency. Many credit counseling agencies are nonprofit organizations that offer education and assistance to help people better manage their finances.\nWhen you work with a credit counseling agency, you'll meet with a counselor who will review your financial situation and help you understand your options. If a DMP is a good fit, the counselor can negotiate with your creditors on your behalf to create new payment plans.\nAs part of the negotiation, creditors may waive fees and lower the interest rate on your accounts if you agree to repay the debt through a DMP. With many DMPs, the goal is to have your debts fully repaid within three to five years, which is easier to do when less interest accrues each month.\nOnce you start the DMP, you'll make a single monthly payment to the counseling agency, which will then distribute the money to your creditors. The agency may also charge you a small monthly fee for the service, but your interest savings could more than cover the cost.\nGenerally, DMPs are only available on accounts that aren't backed by collateral, such as credit cards. And while you may be able to pick and choose which accounts you want to include in your DMP, you'll need to close all the credit cards that are part of the DMP. END
 TITLE: A Debt Management Plan: Is It Right for You? CONTENT: What Are the Benefits of a Debt Management Plan?\n------------------------------------------------\nBorrowers who are struggling with their bills may find a DMP offers a sense of relief and a practical solution. Particularly if you're feeling overwhelmed or you're making monthly payments and the balance never seems to decrease, a DMP can put you on a path to paying off your debts.\nThe main benefits of working with a counselor and getting on a DMP include:\n*   **Professional advice**: You'll start with a financial counseling session where a counselor will go over your budget, debts, goals and options to help you determine the best course of action. Even if you don't go with a DMP, you may find this initial (often free) session helpful.\n*   **Waived fees and lower payments**: The counselor can work with your creditors to waive previously charged fees and lower your monthly payments, helping you pay down your debts more quickly and freeing up room in your budget for other necessary expenses.\n*   **Debt deleted sooner**: The counselor may also be able to negotiate lower interest rates on your debts, which means a larger portion of your payment goes toward the principal balance, and you'll be out of debt sooner.\n*   **One monthly payment**: You receive one monthly statement and send one monthly payment to the counseling agency. It can be much easier to manage than juggling bills from multiple creditors.\n*   **Accounts brought current**: If you've fallen behind on payments, you might not be able to afford to pay your entire past-due balance—even if you can afford the monthly payment. As part of a DMP, your creditors may agree to \"re-age\" your account and update the account status to current, saving you on late fees, after you make several on-time payments through the DMP.\n*   **Fewer calls**: If you're able to include past-due accounts or collection accounts in your DMP, the creditors and collection agencies should stop calling. But it can take several months for calls to stop, as it takes time for all the paperwork and processing to get worked out.\n*   **A plan with accountability**: You could stick to making minimum payments on credit cards and be stuck with the debt for years. But with a DMP, you'll have a plan for paying off the debt and a credit counselor who will keep you accountable.\nYour credit counselor may be able to offer support or referrals to help you manage other aspects of your finances. For example, some agencies offer budgeting, homebuying, student loan and bankruptcy workshops, and have trained counselors who can help you navigate all these situations or goals. END
 TITLE: A Debt Management Plan: Is It Right for You? CONTENT: What Are the Disadvantages of a Debt Management Plan?\n-----------------------------------------------------\nThere are also potential drawbacks to getting on a DMP rather than a different type of debt consolidation or repayment program.\n*   **It won't include every debt.** DMPs generally won't include your secured debts and some types of unsecured loans, such as student loans. Counselors may be able to offer guidance, but you'll generally need to manage those payments on your own.\n*   **There are fees.** You may need to pay an initial setup fee (such as $30 to $50) and a monthly fee (often ranging from $20 to $75) to participate in a DMP. The amounts can vary depending on the counseling agency and state laws, and your financial situation may qualify you for waivers or accommodations.\n*   **Less access to credit.** You'll have to close any credit cards that you include in the DMP, which will diminish your access to credit throughout the month. Your creditors may also monitor your credit reports and require you to stop using credit cards that aren't part of the DMP while you're participating in the program.\nDuring the initial counseling session, the counselor can help you review your financial situation and determine which options are best. Sometimes, a debt consolidation loan or balance transfer credit card might make more sense. If your situation is severe, it might warrant bankruptcy to clear away overwhelming debts and get you on a more manageable repayment plan. END
 TITLE: A Debt Management Plan: Is It Right for You? CONTENT: Does a Debt Management Plan Affect Credit?\n------------------------------------------\nWorking with a credit counselor or starting a DMP won't have a direct impact on your credit scores. However, notes that you're working with a counselor or using a DMP could be added to your credit report, and the DMP process can indirectly impact your credit in several ways:\n*   **Closing accounts may increase utilization.** Your credit utilization ratio is the percentage of your total available credit on revolving accounts (such as credit cards) that you're currently using. A lower utilization ratio is better for your scores. Closing credit cards can decrease your available credit and lead to a higher utilization ratio if you keep other non-DMP credit card accounts open.  \n    The exact impact, however, will depend on your specific situation and the type of credit score. Some scoring models won't include any closed accounts in utilization calculations, while others—including FICO—may include closed accounts that have a balance when determining utilization.\n*   **Bringing accounts current can help you build positive payment history.** If your creditors agree to re-age your past-due accounts and change their status to current, your monthly DMP payment will result in on-time payments on all accounts included in your DMP. These can help you build positive payment history, which is the most important credit scoring factor.\n*   **You'll repay your accounts in full.** A DMP can result in waived fees and lower interest rates, but you'll still be paying your accounts in full when you complete the DMP. This may be better for your credit than settling debts for less than the full amount.\nKeep in mind, too, that contrary to popular belief, closing credit accounts won't immediately impact the length of your credit history and the mix of account types in your credit history. Closed accounts can stay on your credit reports for up to 10 years, and they can continue to impact your credit history's length and credit mix during this time. As a result, closing accounts as part of a DMP (or for any other reason), won't have an impact on these scoring factors for a long time. END
 TITLE: A Debt Management Plan: Is It Right for You? CONTENT: Getting Started With a DMP\n--------------------------\nIf you think a DMP might be a good option, find a trained credit counselor and meet with them in person, or work with a counselor over the phone or online if you'd prefer.\nMany, but not all, credit counseling agencies are nonprofits, and you may want to limit your search to nonprofits. You can start by looking for agencies that are part of the National Foundation for Credit Counseling or Financial Counseling Association of America, two certification organizations, or are accredited by the Council on Accreditation.\nIn preparation, you could review your credit report and make a list of your current debts—information that you may have to prepare and share with your counselor before the initial consultation. You can start by checking the accounts listed on your Experian credit report for free online. END
 TITLE: How to Get Out of Debt - Experian CONTENT: 1\\. List Everything You Owe\n---------------------------\nTo pay off your debt, you need to know exactly how much you owe:\n*   Make a list of all your debts. Include your mortgage, vehicle loans, student loans, other types of loans, accounts in collection and credit cards.\n*   For loans, note your interest rate and monthly payment.\n*   For credit cards, note your interest rate and the minimum monthly payment.\nAdd your monthly loan payments and minimum credit card payments to determine the minimum amount you owe each month.\nIf you're unsure of all the accounts you have open, especially those that might be in collections, you can check your free credit report. It will show what creditors are currently reporting to the credit bureaus, including your most recently reported balances and contact information for the accounts. (Your banks and credit card issuers will have the most up-to-date information.)\nThe total you come up with is the minimum amount you need to pay every month simply to stay current on your debt. However, if that's all you pay toward your debt on a monthly basis, it will be nearly impossible to pay it all off. END
 TITLE: How to Get Out of Debt - Experian CONTENT: 2\\. Decide How Much You Can Pay Each Month\n------------------------------------------\nOnce you've listed out your current debts, make another list that includes all your non-debt monthly expenses, such as groceries, cell phone bill, utilities, gas for your car, rent, entertainment, clothing and so on.\nSome of these amounts can vary from month to month, so it's a good idea to take the average of several months. For example, to find out your average monthly electricity payment, add up the total from six months' worth of bills and then divide the sum by six. That's your average monthly electricity cost for the past six months.\nThis list represents basic expenses that you have to pay every month. Now compare this amount with your monthly income, considering only the money you have left after paying taxes and other salary withholdings—your take-home pay or monthly net income. Subtract these total expenses from your monthly income.\nIf the amount you have left over after paying these necessary bills is less than the amount you need to put toward your debt, you'll need to take action. You may choose to:\n*   **Look for opportunities to save.** Reconsider your expenses and consider ways to spend less. For example, if you dine out a lot, cutting back could save money that you could put toward paying off debt.\n*   **Consider debt consolidation.** A debt consolidation loan allows you to compile multiple high interest debts, such as credit card balances, into a single lower interest debt. While debt consolidation can't lower the principal of what you owe, it can reduce the total amount of interest you'll pay over the life of the debt. Reducing interest expenses may make it easier for you to put more money toward paying down the principal of the debt.\n*   **Increase your income.** This will give you more money to put toward your debt. You might get a second job, sell some things you don't need or look for a job that pays more.\nIf the amount left over after paying basic expenses is more than the minimum amount you need to put toward your debt, decide how much additional money you would like to set aside to pay down your debt each month. Remember, the more you can pay above the minimum, the faster you'll be able to pay off your debt. END
 TITLE: How to Get Out of Debt - Experian CONTENT: 3\\. Reduce Your Interest Rates\n------------------------------\nHigh interest rates can cause your debt to grow rapidly, especially if you have a lot of credit card debt. When you're paying a lot in interest, it can be difficult to pay off the principal.\nHere are some common types of higher interest debt and tips for how to reduce the interest you pay on each:\n### Credit Cards\nYou have a few options for reducing credit card interest rates:\n*   **Ask the credit card issuer for a lower rate.** If you have a good payment history with them and good credit, they may agree to lower your rate for a period of time, or even permanently. Calling your issuer and asking for a lower interest rate costs you nothing and doesn't affect your credit report or credit score.\n*   **Consider a balance transfer credit card.** If you're not able to secure a lower interest rate from your current credit card company, you may be able to transfer outstanding credit card balances to a balance transfer card with a lower or zero interest rate. Credit card companies often offer promotional rates for a limited period in exchange for you transferring a balance from an existing card to a new one. You'll need to meet the balance transfer card company's qualifications, and you'll probably need to pay a transfer fee of around 3 percent of the balance you're transferring.\n*   **Look into a debt consolidation loan.** This option can be another way to lower your interest rates because loans of this type typically charge lower interest than credit cards.\n### Student Loans\nWhile certain types of student loans can have fairly low interest rates, if your student loans are older, your rates may be higher. Additionally, if you have a high principal, the interest can quickly add up.\nDepending on your income and the type of student loan you have, you may be able to apply for an income-driven repayment plan on StudentLoan.gov that will lower your monthly payment. You must be current on your student loan debt to qualify, but you could reduce your monthly payment without incurring a penalty or harming your credit score.\nYou may also be able to obtain a debt consolidation loan if you have more than one student loan. Consolidating multiple student loans, which you can also apply for through StudentLoan.gov, will allow you to have a single monthly payment at a fixed interest rate that's based on the average of the interest rates on the loans you're consolidating. There's no cost to consolidate multiple federal education loans into one loan. However, you may lose certain student loan benefits, such as the ability to defer repayment.\nYou may also apply for a debt consolidation loan from a bank or other financial institution that combines your student loans and other debt, such as credit card debt. If you go this route, however, you may lose student loan benefits, such as the ability to defer repayment.\n### Debt Settlement\nIf you're looking for help dealing with high interest rates and difficult-to-manage debt, you may wonder if debt settlement is a good option for you. Some debt settlement companies advertise that they will negotiate with lenders on your behalf to get your payments reduced. With debt settlement, you go through a third-party company to pay your creditors a lump sum, usually an amount less than the total you owe, to settle the debt. While debt settlement may make it easier for you to pay off your debt, it does have some significant credit consequences.\nWhenever you pay less than the full amount you owe—which you agreed to pay when you entered into a credit agreement with the lender or credit card company—the settlement appears as negative information on your credit report. Negative information can contribute to lower credit scores.\nInstead of diving into debt settlement, a better option might be to talk to a nonprofit credit counselor. Credit counseling organizations can help you better understand tactics for managing and reducing your debt, such as creating and following a budget, and they may help you avoid the negative impact of debt settlement\nCredit counseling organizations also offer debt management plans, which are typically for those deep in debt. A debt management plan can reduce the number of payments you have to remember each month. A credit counselor from a government-approved list will negotiate with your creditors to see if they'll accept reduced interest rates or monthly payments, waive fees or reduce the amount you owe. Then you pay the credit counseling agency once a month and the organization distributes the funds to your creditors per their agreement. If you enroll in a debt management plan, it could appear on your credit report. For more, see \"A Debt Management Plan: Is It Right for You?\" END
 TITLE: How to Get Out of Debt - Experian CONTENT: 4\\. Pay Your Bills on Time Each Month\n-------------------------------------\nPaying all your bills on time every month is one of the single best things you can do for your credit. Take any steps necessary to ensure you remember to pay your bills. You can set up automatic payments or payment reminders through your bank to ensure you never miss a payment.\nIf you find you're having trouble juggling all your bills and keeping up with payments, a debt consolidation loan or a debt management plan, mentioned above, could help. But you don't need professional help to create your own plan for managing debt. There are multiple ways to pay down debt, including:\n*   **Put extra money toward the debt with the highest interest rate.** In the long run, this will reduce the total amount of interest you pay.\n*   **Put extra money toward the credit card or debt with the smallest balance.** You'll be able to pay it off quickly, reducing the total number of accounts you have to deal with and giving yourself the mental boost of successfully eliminating part of your debt (though you'll pay more interest in the long run than if you were to pay off debt with the highest interest rate first).\n*   **Deal with any debts in collections.** Bringing collection accounts current can help reduce their negative impact on your credit, which is a good reason to put it at the top of your to-do list. Plus, reducing calls from debt collectors can help relieve some of the stress of being in debt. END
 TITLE: How to Get Out of Debt - Experian CONTENT: 5\\. Be Diligent Moving Forward\n------------------------------\nAs you work to pay down your current debts, it's important not to undermine your hard work by taking on any new debt. Avoid the temptation to use a personal loan or balance transfer card to consolidate credit card debt unless you're extremely diligent about not using the card once you've paid off the balance, or only charge what you know you can pay off every month.\nEach time you successfully pay off a debt, put the extra money you freed up toward paying off more of your other debts. In months where you make more money than anticipated, or your expenses are less than expected, make the extra money work harder for you by putting it toward additional payments on your debt. END
 TITLE: How to Get Out of Debt - Experian CONTENT: What if You Still Need Help?\n----------------------------\nSometimes debt is just too much and you may fear you'll never be able to repay everything you owe. You do have some last resort options, such as getting a debt management plan or declaring bankruptcy.\nDeclaring bankruptcy is one of the most harmful circumstances for your credit, and it should only be a last resort. Depending on the type of bankruptcy you declare, the negative information will remain on your credit report for seven to 10 years. You may either have all your debts eliminated or have to agree to a plan to repay at least part of your debt.\nIf your debt management plan isn't working and you're thinking about declaring bankruptcy, you might first consider getting a debt consolidation loan to help streamline your payments and lower your interest rates. Check out these Experian partner loans offering debt consolidation loans with competitive annual percentage rates (APRs).\n### Prosper\n[](;site=exp&placement=ae-single-embed&sessionid=7A1270B6-72F3-3402-82EB-0B394FE33A55&pageid=blogs:ask-experian:credit-education:how-to-get-out-of-debt&previouspageid=&ecsstaticid=A2C32774-7BC6-4F8A-EBC7-87C68D58DD27)[Apply](;site=exp&placement=ae-single-embed&sessionid=7A1270B6-72F3-3402-82EB-0B394FE33A55&pageid=blogs:ask-experian:credit-education:how-to-get-out-of-debt&previouspageid=&ecsstaticid=A2C32774-7BC6-4F8A-EBC7-87C68D58DD27)\non Prosper's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $2,000 to $40,000\nEst. monthly payment: $61 to $1,720\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   640 minimum FICO® Score\n*   More than $16 billion loans funded\n*   Consolidate debt, finance a home improvement project, or pay off medical expenses\n*   9 out of 10 customers would recommend Prosper to friends or family\\*\\*\n*   Co-borrower option available. Applying with a co-borrower could help improve your rates.\n*   Get your money in as few as 3 days - your monthly payment stays the same\nDisclosure\nProsper accepts applicants with a FICO® Score☉ of 640 or above and offers fixed interest rates ranging from 7.95% to 35.99%, depending on your creditworthiness. If you qualify for a loan with low interest, you could borrow up to $40,000 and use it to consolidate your current balances, streamlining your payments and saving you money on interest. Prosper has a simple online application process and allows you to find out your interest rate without your credit scores being affected.\nOnce you've reduced or even eliminated your debt, you can begin rebuilding your credit by practicing good credit and financial management. Pay all your bills on time, and avoid carrying credit card balances from month to month. To keep track of your credit going forward, you can check your credit reports and scores for free with Experian or enroll in ongoing credit monitoring. END
 TITLE: How to Get Out of Debt - Experian CONTENT: ### Prosper\n[](;site=exp&placement=ae-single-embed&sessionid=7A1270B6-72F3-3402-82EB-0B394FE33A55&pageid=blogs:ask-experian:credit-education:how-to-get-out-of-debt&previouspageid=&ecsstaticid=A2C32774-7BC6-4F8A-EBC7-87C68D58DD27)[Apply](;site=exp&placement=ae-single-embed&sessionid=7A1270B6-72F3-3402-82EB-0B394FE33A55&pageid=blogs:ask-experian:credit-education:how-to-get-out-of-debt&previouspageid=&ecsstaticid=A2C32774-7BC6-4F8A-EBC7-87C68D58DD27)\non Prosper's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $2,000 to $40,000\nEst. monthly payment: $61 to $1,720\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   640 minimum FICO® Score\n*   More than $16 billion loans funded\n*   Consolidate debt, finance a home improvement project, or pay off medical expenses\n*   9 out of 10 customers would recommend Prosper to friends or family\\*\\*\n*   Co-borrower option available. Applying with a co-borrower could help improve your rates.\n*   Get your money in as few as 3 days - your monthly payment stays the same\nDisclosure\nProsper accepts applicants with a FICO® Score☉ of 640 or above and offers fixed interest rates ranging from 7.95% to 35.99%, depending on your creditworthiness. If you qualify for a loan with low interest, you could borrow up to $40,000 and use it to consolidate your current balances, streamlining your payments and saving you money on interest. Prosper has a simple online application process and allows you to find out your interest rate without your credit scores being affected. END
 TITLE: Is a Debt Consolidation Loan Right For You? CONTENT: When Debt Consolidation May Be a Good Option\n--------------------------------------------\nYou can use a personal loan for just about anything you want. But if you're thinking of using it as a debt consolidation loan, here are the times when it's worth considering:\n*   **You already have a good credit score.** Personal loans are available to borrowers across the credit spectrum. But if you want favorable terms and a low interest rate, you'll generally need at least a good credit score, which starts at a FICO® Score☉ of 670.\n*   **You have high-interest debt.** The average personal loan interest rate is 9.41%, according to Experian data. In contrast, the average credit card interest rate hovers around 16%. If you can qualify for a lower rate than what you're paying now, consolidating your debt could allow you to save some money on those interest charges.\n*   **You have a repayment plan.** One of the dangers of credit cards is that as a type of revolving credit, they allow you to borrow and pay off funds on an ongoing basis—and as a result, there's no set repayment plan. If you keep using your card and paying just the minimum amount due every month, you could remain in debt forever. Personal loans, on the other hand, have a set repayment term, so they can be an excellent alternative if you're motivated to have a plan and stick to it.\nKeep in mind, though, that if your credit score is solid and you have a clear plan for repaying your debt, you may also benefit from a balance transfer credit card. These cards offer introductory 0% APR promotions, which could save you even more money if you can pay off your debt during the promotional period.\nHowever, the interest rate will jump when the promotional period ends, so consider this option only if you're confident you'll pay off the balance before that time. END
 TITLE: Is a Debt Consolidation Loan Right For You? CONTENT: When Debt Consolidation May Not Work for You\n--------------------------------------------\nAlthough there are some clear benefits to using a debt consolidation loan to pay off credit card debt, there are some situations where it might not be the best fit:\n*   **You don't plan to change your spending habits.** A consolidation loan may be appealing because it frees up available credit on your credit card. But if you transfer the debt, then rack up more on those cards you just paid off, you could end up in an even worse financial situation. It's best to address potential spending issues before moving forward with a loan.\n*   **You have fair or poor credit.** Again, it's possible to get approved for a personal loan with bad credit. But you'll likely end up with a higher interest rate, which could increase your costs and potentially make the monthly payments unaffordable.\n*   **You don't have a lot of debt.** If you think you can pay off your credit card balances in the next six to 12 months, the savings from a debt consolidation loan may not be worth the effort of researching, comparing and applying. END
 TITLE: Is a Debt Consolidation Loan Right For You? CONTENT: How to Get a Debt Consolidation Loan\n------------------------------------\nMany lenders allow you to get prequalified for a loan before you submit an official application. This process typically includes a soft credit check, which won't hurt your credit score. If a lender doesn't offer prequalification and several others on your list do, it may be best to avoid the one that doesn't.\nOnce you've committed to a lender, submit an application. This typically requires you to provide some personal information, employment and income information, and how much you're hoping to borrow.\nIn some cases, a lender may ask you to offer documentation to prove some of the information you've provided. That can include things like a copy of your government-issued photo ID, pay stubs, bank statements and proof of residence (such as a lease agreement or utility bill). Have these things ready before you apply so the process goes more quickly and smoothly.\nBefore you pull the trigger and apply, though, figure out what the lifetime cost of the loan will be, then use a credit card payoff calculator to see what you'd pay if you continued making payments on your credit cards instead. Comparing these numbers will help you determine if you'll save enough to make the loan process worthwhile. END
 TITLE: Is a Debt Consolidation Loan Right For You? CONTENT: Where to Get a Debt Consolidation Loan\n--------------------------------------\nThe more options you have, the better your chances of finding the most affordable debt consolidation loan available to you. You can start your search with the bank or credit union you use for your banking and lending needs. It's also a good idea to check with online lenders, which may be able to provide cheaper options.\nExperian CreditMatch™ can assist with this process by helping you get prequalified and showing loan offers from multiple lenders all in one place, based on your credit profile.\nAs you compare your options, look at more than just the interest rate. For example, some lenders offer both variable and fixed rates, so you'll want to make sure you're comparing similar loans.\nAlso, consider the loan amounts, repayment terms, origination fees and other features to make sure you find the right fit. The best debt consolidation loans offer low interest rates, flexible repayment terms and low or even no fees. END
 TITLE: Is a Debt Consolidation Loan Right For You? CONTENT: What if Your Loan Application Is Denied?\n----------------------------------------\nIf your loan gets denied, there could be many reasons why. You'll receive an adverse action notice, typically in the mail, which details why the lender made its decision. You'll also be entitled to a free copy of your credit report, which can help you pinpoint the areas of your credit history you can improve.\nBe sure to check your credit score and credit report to get an idea of where you stand and what actions you can take. If your credit history is in relatively good shape, consider reducing your loan amount or applying with a different lender that may not have such stringent credit requirements.\nIf your credit woes will take some time to improve, consider other ways you can pay down your credit card balances more effectively. For example, creating a budget can help you get an understanding of where your money is going and which areas you can cut back on and reallocate that cash to pay off debt.\nIf you have multiple credit cards, consider using the debt avalanche or debt snowball method to pay them off. With both of these approaches, you'll make just the minimum payment on all of your credit cards except for one, to which you'll add extra payments every month.\nOnce that account is paid off, you'll take the amount you were paying and apply it to the next card on top of its minimum payment, and you'll continue that process until all of your balances are paid in full.\nThe primary difference between the two methods is which cards you target first. With the debt avalanche method, it's the card with the highest interest rate, and with the debt snowball method, it's the card with the lowest balance. While you may save a little in interest by using debt avalanche, if quicker wins help to motivate you, debt snowball may be the better approach. END
 TITLE: Is a Debt Consolidation Loan Right For You? CONTENT: How Do Debt Consolidation Loans Affect Credit?\n----------------------------------------------\nA debt consolidation loan can affect your credit scores in a few ways, both good and bad. Here's how:\n*   **Credit utilization ratio**: Your credit utilization ratio is the percentage of your available revolving credit that you're using. Keeping this ratio below 30% for each of your credit cards is important to maintaining a good credit score. For example, if you have a $1,000 balance on a credit card with a $2,000 limit, your utilization rate is 50%. A utilization ratio this high can hurt your credit score. When you pay off credit cards with a consolidation loan, which is a form of installment credit that doesn't count toward your ratio, it drops your utilization to 0%, which can help your credit score.\n*   **Payment history**: If you make your loan payments on time every month, it can help improve your credit score over time. However, if you miss a payment by 30 days or more, your score could take a massive hit.\n*   **Average age of accounts**: Every time you open a new credit account, it reduces the average age of your accounts, which impacts your length of credit history. It's not as important as your payment history or utilization rate, but it can still have an impact.\n*   **Hard credit inquiry**: Each time you apply for a loan, the lender will run a hard inquiry to review your credit reports. According to FICO, this can lower your score by a few points.\nIf you're thinking of consolidating debt, make sure to consider these factors and how the process might affect your credit profile now and in the future.\nMake Plans for Responsible Credit Card Use\n------------------------------------------\nPaying off credit card debt can have a significant positive impact on your financial health, but only if you can avoid racking up balances again in the future. Use a budget to stay on top of your spending and avoid charging more than you can afford to pay off.\nAlso, make it a priority to monitor your credit regularly to keep an eye on any changes that could impact your ability to qualify for favorable credit terms in the future. As you take these and other steps to use your credit cards responsibly, you'll have a better chance of staying debt-free. END
 TITLE: Is a Debt Consolidation Loan Right For You? CONTENT: Make Plans for Responsible Credit Card Use\n------------------------------------------\nPaying off credit card debt can have a significant positive impact on your financial health, but only if you can avoid racking up balances again in the future. Use a budget to stay on top of your spending and avoid charging more than you can afford to pay off.\nAlso, make it a priority to monitor your credit regularly to keep an eye on any changes that could impact your ability to qualify for favorable credit terms in the future. As you take these and other steps to use your credit cards responsibly, you'll have a better chance of staying debt-free. END
 TITLE: APR Calculator CONTENT: The interest rate on a loan determines how much interest you’ll pay, but it doesn’t account for fees and other charges that you also owe. When comparing loan offers, it’s best to use the annual percentage rate (APR) to get the true cost of your loan.\nA loan APR includes financing charges to determine your annualized cost of taking out a loan. As a result, the APR can help you compare two loans with different fees and interest rates.\n†The information provided is for educational purposes only and should not be construed as financial advice. Experian cannot guarantee the accuracy of the results provided. Your lender may charge other fees which have not been factored in this calculation. These results, based on the information provided by you, represent an estimate and you should consult your own financial advisor regarding your particular needs.\nHow to Use This Calculator\n--------------------------\nThe APR calculator determines a loan’s APR based on its interest rate, fees and terms. You can use it as you compare offers by entering the following details:\n*   **Loan amount:** How much you plan to borrow.\n*   **Finance charges:** Required fees from the lender, such as an origination fee or mortgage broker fee. Situational fees, such as a late payment fee, generally aren’t included in APR calculations.\n*   **Interest rate:** The interest rate that the lender charges on the loan.\n*   **Term:** The number of years you have to repay the loan.\nOften, the Federal Truth in Lending Act requires lenders to tell you the APR, so you won’t have to calculate it on your own. In some cases there are even templates that lenders must use, such as the Loan Estimate form for mortgages. When reviewing that form, you can find the interest rate on the first page and the loan’s APR on page three.\nHowever, if you’re comparing loan offers from different lenders, it’s sometimes helpful to look into the details and do the APR calculations on your own. For example, mortgage lenders might be able to exclude certain fees from their APR calculations, and you want to make sure the APRs you're comparing are based on the same financing charges.\nWhat's the Difference Between APR and Interest Rate?\n----------------------------------------------------\nThe difference between a loan's APR and its interest rate can depend on the type of financial product.\nFor installment loans, such as personal, auto, student and mortgage loans, the APR and interest rate may be the same if there are no finance charges. However, if there is a finance charge, such as an origination fee, the APR will be higher than the interest rate because your cost of borrowing is more than the interest charges alone. The difference between the APR and interest rate can also increase if the loan’s term is shorter, as you’ll be repaying the entire finance charge more quickly.\nOn credit cards, the APR and interest rate are the same because a credit card APR never takes the card’s fees into account. As a result, you may want to compare not only cards’ APRs, but also their annual fees, balance transfer fees, foreign transaction fees and any other fees when deciding on a credit card. Keep in mind that you can generally avoid paying interest on your credit card if you pay off the balance in full every month.\nHow Is APR Calculated for Loans?\n--------------------------------\nA loan’s APR is calculated by determining how much the loan is going to cost you each year based on its interest rate and finance charges. While the APR will be displayed as a percentage, it’s not a new or different interest rate—it’s a measure that can help you understand the cost of borrowing money given the specific terms.\nIt’s also important to remember that a loan’s APR can change after you take out the loan. This could be due to a changing interest rate if your loan has a variable or adjustable rate. Or, if you pay off or refinance your loan before the end of its term, the effective APR of that loan may increase.\nImproving Your Credit Can Get You Lower Rates\n---------------------------------------------\nLenders may offer you a different APR on your loan depending on your creditworthiness and the repayment term you choose. Those applicants with higher credit scores and lower debt-to-income ratios may qualify for lower interest rates and finance charges, leading to a lower APR.\nTo improve your credit and avoid late payment fees, make all your debt payments on time. Paying down your credit card balances can also help your credit by lowering your credit utilization ratio.\nIf you need to borrow money now and don’t have time to improve your credit first, you can still compare lenders’ offers to figure out which loan has the lowest APR. Often, you can start by getting prequalified or preapproved for a loan to see your estimated APRs and terms.\nAll else being equal, the lowest APR may be best. However, keep the big picture in mind before taking out a loan. For example, lenders may offer you a lower rate on shorter-term loans, which can lead to a lower APR but higher monthly payments. If that’s not affordable, the longer-term loan with a higher APR may be best. END
 TITLE: How to Pay Off Credit Card Debt CONTENT: Credit Card Debt Repayment Strategies\n-------------------------------------\nThere are several different ways you can tackle your credit card debt. And depending on your credit situation and budget, some may be better than others. Here's a quick summary of your options that could help you decide which path to pursue. END
 TITLE: How to Pay Off Credit Card Debt CONTENT: Tips for Paying Off Credit Card Debt\n------------------------------------\nAs you consider your options for paying off your debt and try to find the most effective way to achieve your goal, here are some tips to help you make it happen. END
 TITLE: How to Pay Off Credit Card Debt CONTENT: Should You Close a Credit Card After Paying Off Debt?\n-----------------------------------------------------\nEven if you manage to tackle your debt swiftly, it can feel like you're spinning your wheels if you're adding more to your balances each month. Consider putting a moratorium on your current credit card spending while you focus on eliminating the balances. Instead of canceling the accounts, however, consider keeping them in a safe location where you don't have convenient access to them.\nWhen you cancel a credit card account, it can potentially hurt your credit scores by reducing your overall credit limit. This can impact your credit utilization, which makes up 30% of your FICO® Score☉ .\nIf you cancel a card with a high credit limit and have high balances on your remaining cards, even if you pay them in full each month, it could increase your credit utilization and negatively impact your credit scores.\nOn the flip side, if your card has an annual fee or a security deposit attached and you don't plan to use it, it may be worth it to cancel and save money or get your deposit back. You can also consider downgrading your credit card to one without an annual fee.\nIf you decide to hold on to the cards you no longer plan to use, try to use them occasionally (and pay them off immediately) to keep the accounts active. Otherwise, your card issuer may choose to close down the account for you, which they can do without notice. END
 TITLE: How to Pay Off Credit Card Debt CONTENT: Learn How to Use Your Credit Responsibly in the Future\n------------------------------------------------------\nAfter you reach your goal of paying off your credit card debt, it's important to be proactive about developing good credit habits to avoid ending up in the same situation again.\nThis includes:\n*   Sticking to your budget to avoid overspending.\n*   Paying off your balance on time and in full every month.\n*   Avoiding racking up a high balance.\n*   Taking advantage of credit card rewards and benefits to add more value to your everyday spending.\nIt's also a good idea to check your credit score regularly to know where you stand at all times. This can also help you spot potential issues that could hurt your credit, so you can address them quickly. In addition to your credit score, make sure you also frequently review your credit reports, which give you a deeper understanding of what's affecting your credit score. END
 TITLE: Credit Card Payoff Calculator CONTENT: Paying off credit card debt can help you save money on interest and improve your overall financial well-being. Whether you have just one credit card or many, you can use this calculator to figure out how long it’ll take to pay off your debt and how much interest it’ll cost you.\n†The information provided is for educational purposes only and should not be construed as financial advice. Experian cannot guarantee the accuracy of the results provided. Your lender may charge other fees which have not been factored in this calculation. These results, based on the information provided by you, represent an estimate and you should consult your own financial advisor regarding your particular needs.\nHow to Use This Calculator\n--------------------------\nFor each credit card you have, enter the current balance, the annual percentage rate (APR) and your monthly payment. When you enter the balance and APR, an estimated minimum payment will automatically show up in the third field, but you can change it based on your actual payment amount.\nWhen you click the Calculate button, you’ll see several things to help inform your debt payoff strategy, including:\n*   The month and year you’ll be debt-free\n*   The number of payments you’ll need to make\n*   Total interest you’ll pay\n*   Total payment amount, including interest and principal\nYou can also click on the Payment Schedule tab to see exactly how much of each payment will go toward interest and how much will go toward paying down your balance.\nRemember, you can add multiple credit cards to the calculator. And as you define your strategy for eliminating credit card debt, you can enter different payment amounts to see how much time and money you’ll save.\nHow to Pay Off Credit Card Debt\n-------------------------------\nDepending on your situation, you may have several different options to pay off your credit card debt. If you’re not planning to consolidate your credit card balances (see below for more), there are two approaches you can use: the debt snowball method and the debt avalanche method.\nThe debt snowball method involves making just the minimum payments on all of your credit cards except for the one with the lowest balance. Take any extra money you have to put toward your debt every month, and apply it to that card.\nOnce that card is paid off, you’ll take the monthly payment you were putting toward it and apply that to the card with the next-lowest balance (on top of its minimum monthly payment). You’ll continue that same strategy until all of your balances are paid off.\nThe debt avalanche method works similarly, but instead of targeting cards based on their balance, you’ll work on paying off the cards with the highest interest rates first.\nNeither method is inherently better than the other, so choose the right one for you based on your goals and preferences. With the debt snowball method, for instance, you’ll be guaranteed to pay off smaller balances first, which can give you the wins you need to keep your motivation going.\nWith the debt avalanche method, focusing on higher interest rates first could save you more money on interest charges. Depending on the makeup of your credit card debt, however, those savings may not be much higher than what you’d achieve with the debt snowball approach.\nHow Does Credit Card Debt Consolidation Work?\n---------------------------------------------\nIf your credit score is in good shape, debt consolidation may be an excellent way to pay off your debt faster and save money along the way.\nConsolidating credit card debt involves paying off your existing debt with a new credit card or personal loan, preferably with better terms. Here’s a breakdown of how each debt consolidation option works:\n*   **Balance transfer credit cards**: With a balance transfer credit card, you can transfer debt from one or more existing cards to a new one. Many balance transfer cards offer an introductory 0% APR promotion, which means you can pay off your debt interest-free during the promotional period. Some of these cards charge an upfront fee of up to 5% of the transfer amount, but that may be worth it for the interest savings.\n*   **Personal loans**: You can use personal loans for just about anything, including debt consolidation. On average, personal loans charge lower interest rates than credit cards, and you may be able to get a rate in the single digits if your credit is excellent. Personal loans also offer the benefit of set repayment terms instead of just giving you a minimum payment.\nRegardless of which option you choose, it’s important to avoid racking up balances on your paid-off credit cards—otherwise, you could end up in an even more difficult financial situation.\nHow Does Credit Card Debt Impact Your Credit Score?\n---------------------------------------------------\nYour credit utilization rate—the percentage of your available credit that you’re using at any given time—is an important indicator of how you manage debt. As a result, it’s one of the major factors that help determine your credit score.\nIf you’re bumping up against your credit limits, it could be damaging your score considerably. In other words, paying off your credit card debt can improve your credit and your overall financial well-being.\nAs you work on paying down your debt, make sure to check your credit score regularly to keep track of your progress. This practice can also help you spot other areas of your credit history that you can address to increase your credit score. END
 TITLE: Car Payment Calculator CONTENT: Picking out a new car can be fun. Choosing the best auto loan—not so much. Your monthly payment is determined by many factors, including the loan amount, term and the loan’s interest rate, and understanding how they all fit together can be tricky.\nTo ease this process, Experian’s Auto Loan Calculator can help you figure out how much you can afford and what your payment might be when various factors are adjusted. You can use this information when selecting a loan offer and can also utilize this calculator to gain an edge before you begin shopping.\nWhen using this calculator, provide as much information as possible—that way your results will be more accurate and provide a better starting point you can use to negotiate the best deal.\n†The information provided is for educational purposes only and should not be construed as financial advice. Experian cannot guarantee the accuracy of the results provided. Your lender may charge other fees which have not been factored in this calculation. These results, based on the information provided by you, represent an estimate and you should consult your own financial advisor regarding your particular needs.\nHow to Use the Car Payment Calculator\n-------------------------------------\nThe main purpose of this calculator is to help you compare estimated payments for loans with different term lengths and interest rates. When you apply for a loan, you’ll get to choose a term length, which is the number of months you’ll make payments. Your interest rate may change based on which term length you choose, and your rate will also change based on your credit score.\nAs you use this tool, you’ll find that the interest rate and loan amounts have already been filled in. These pre-filled values are national averages, so if you aren't sure what to enter, you can leave these values in place. However, providing specific information will give you a more accurate result for your situation.\nOnce you enter all the information below, click “Calculate” and you’ll be shown a breakdown of your monthly payment, along with information about how much you’ll pay in interest and sales tax. If you click “Add another option to compare payment,” you can enter a different term and rate to see how the payment changes. Comparing these payment estimates could help you choose the term and interest rate that fits better within your budget.\nHere is an overview of each field:\n*   **Loan Amount:** This is the total amount of money you plan to borrow. You can calculate this by taking the total vehicle price (including taxes, fees and other add-ons) and subtracting your down payment and any additional deductions like a vehicle trade-in.\n*   **Interest Rate:** When you apply for a loan, you’ll be assigned an interest rate that can vary depending on how the lender rates your creditworthiness. Your interest rate will be a percentage ranging from 0% to 15% or more.\n*   **Term (in years):** When you choose the term of your loan, it will likely be in an interval of 12 months. The average term is around 72 months, but common auto loan terms range from 48 months up to 84 months. Whatever your loan term, take this figure and divide it by 12 to figure out your term in years.\nHow to Decide on a Loan Term for Your Car\n-----------------------------------------\nThe term of your auto loan is the length of time you’re given to pay back the loan in full. You select the term when you lock in your loan, and the duration you choose will affect your monthly payment amount.\nGenerally, loans with longer terms have lower monthly payments. As the term of your loan shortens, your monthly payment will go up. Remember, your loan amount remains the same regardless of the term, so even though loans with longer terms have cheaper monthly payments, you’ll likely pay more interest over time.\nSince the term you choose can impact your monthly payment, it's important to know what you can afford before locking in a term. To do this, add all your monthly financial obligations and subtract this total from your net income. Take a portion of the leftover money—how much will depend on your lifestyle and income—and set it aside for your monthly transportation costs, part of which will be your monthly car loan payment.\nThough it may seem attractive to opt for a longer term for your auto loan, remember that the longer your loan term is, the more you will pay in interest over time. That means that even though you may pay more per month for a 48-month loan, that loan will likely cost you less than a 72-month loan by the time you’re done paying it off.\nHow to Get a Lower Car Payment\n------------------------------\nIf it looks like you won’t be able to afford the monthly payment for your dream car, don’t worry. You can lower your car payment by making a few changes. Check out the following list for tips on how to lower your car payment:\n*   **Pick a cheaper car.** One easy way to lower your payment is by reducing the cost of the car, which will lower your loan amount. The lower your loan amount, the less you’ll have to pay each month—and the less you’ll pay overall in interest.\n*   **Save for a larger down payment.** Your down payment is the money you pay upfront when you purchase the car. If you aren't in a rush to get a new car, saving for a bigger down payment will reduce your loan amount and could help you lower your monthly payment. Furthermore, reducing the size of your loan with a big down payment may help you lock in other favorable loan terms.\n*   **Shop around for a lower interest rate.** When you take out an auto loan, you’ll be assigned an interest rate that represents the cost to borrow money to pay for your car. Interest is paid as part of your monthly payment, and the lender determines your rate based on your creditworthiness and other factors. If you can lock in a lower interest rate, your monthly payment should be lower as a result. Rates vary by lender, and an improved credit score could help you land a lower one.\nUltimately, when you go to the negotiation table to buy a car and apply for a new loan, it’s always helpful to have good credit. A high credit score can help you lock in a low interest rate and can get you more favorable terms on your loan.\nIf you don't know your credit score, you can get a free copy of your credit report and FICO® Score from Experian to get an updated view of where your credit stands. END
 TITLE: Mortgage Calculator CONTENT: Shopping for a new home is a time of dreams and possibilities, but navigating the mortgage process can also make it stressful and confusing. Differences in interest rates and repayment terms can complicate the process of comparing mortgage offers.\nThe Experian Mortgage Calculator is designed to help you make sense of it all. This helpful tool takes some of the complexity out of shopping for mortgage loans and choosing the offer that’s best for you.\nRead on to learn how the calculator works, and how it can help you better understand the mortgage process.\n†The information provided is for educational purposes only and should not be construed as financial advice. Experian cannot guarantee the accuracy of the results provided. Your lender may charge other fees which have not been factored in this calculation. These results, based on the information provided by you, represent an estimate and you should consult your own financial advisor regarding your particular needs.\nHow to Use This Calculator\n--------------------------\nThe Experian Mortgage calculator can help you understand how differences in rates and repayment terms affect the amount of your monthly payment and the total cost of a home over time. It requires just a few pieces of information to get started. If you add a few more details using the calculator’s optional Advanced Options, you can get an even clearer idea of what your monthly mortgage payment might look like for different loans.\n*   **Home Price**: This is the amount you’ll pay the home seller. If you’re in the early stages of home shopping, use the sellers’ asking prices for comparison, but keep in mind that figure is negotiable. If you’re shopping in a highly competitive market and expect to be one of several bidders, you may want to make an offer higher than the asking price. In slower markets or with properties that have been on the market for extended periods, a bid below asking price could succeed. Work with a real estate professional to determine your offer strategy.\n*   **Down Payment**: When you enter the Home Price, the calculator automatically fills in the Down Payment field to reflect 20% of the home price. That’s the standard down payment required for most conventional mortgages. Many mortgage lenders, including those that issue federally backed loans, will accept lower down payments, typically in exchange for higher interest rates and\/or fees—and with the stipulation that you pay mortgage insurance, which you can account for in the calculator’s Advanced Features. (If you’re in a position to make a higher down payment, you can account for that here as well.) You can adjust this entry by changing either the percentage figure or the dollar amount.\n*   **Term (in years)**: Enter the number of years required to repay the mortgage. By default, this calculator assumes a 30-year mortgage, since that’s the most common term for a home loan in America. Other standard mortgage terms include 15 years, 20 years and 40 years; adjust this number as appropriate for the offer you’re evaluating. All other factors being the same, longer mortgage terms mean lower monthly payments, but they also mean significantly greater interest costs over the life of the loan.\n*   **Interest Rate**: Enter the interest rate for the loan you’re considering. Make sure to enter the interest rate, not the APR (annual percentage rate). These figures can be similar, but the APR reflects interest charges plus additional financing costs such as fees and mortgage insurance (more below). Enter only the interest rate here.\n### Advanced Options\n*   **Property Tax (annual)**: Property taxes vary according to where you live and depend on the assessed value of the home as determined by local taxing authorities. It’s common for lenders to roll your property taxes into your mortgage payments (though it’s not always required). The lender uses the collected payments to pay your taxes each year on your behalf. If that’s applicable to your loan, you can enter an approximate annual tax bill in this field.\n*   **Homeowners Insurance (annual)**: Because the mortgage lender holds title to your home until the mortgage is paid off, and reserves the right to seize and sell the property if you fail to repay the loan, the lender typically insists that you maintain sufficient fire and casualty insurance on the property to restore it to its full market value in case of fire, flooding or other disasters. To that end, property insurance premiums are typically added to the monthly mortgage payment. Adding annual property insurance costs here will mean insurance costs are reflected in the monthly payments generated by the calculator.\n*   **Mortgage Insurance**: If you make a down payment of less than 20% of the home value when you take out the mortgage, your lender will require you to pay for mortgage insurance to offset the costs they’ll incur if you fail to repay your loan. Mortgage insurance pricing is typically expressed as a percentage of the total home price, and typically range from 0.5% to 2% of the loan amount. If you’ll be paying for this, enter its cost in points. The calculator accepts any entry of 3 or less. The calculator will use this cost to factor mortgage insurance costs into the monthly payment.\n    If mortgage insurance is required for your mortgage, you may be able to have it removed once you’ve paid off enough of the loan to have 20% equity in the property, which will lower your monthly payment. Leaving this calculator field untouched or setting its value at zero will show you what your monthly payment would be without this cost.\n*   **Monthly HOA**: If the home you’re buying is part of a homeowners association (HOA), you’ll be expected to pay regular fees or dues to cover services and amenities provided by the association. These can include community clubhouses, pools, gyms and sports facilities, and services such as security patrols, landscaping and road maintenance. Those costs are often folded into monthly mortgage payments. Add monthly HOA charges here to have them reflected in your monthly payment calculation.\n### Calculated Results\nAfter you’ve filled in all applicable fields, press the Calculate button and you’ll be shown a results box with two tabs, marked Payment Summary and Payment Schedule.\n*   **Payment Summary**: The Payment Summary tab, which displays by default, shows you your calculated monthly payment, plus the total amounts you’ll pay in principal and interest, property taxes and homeowners insurance (at current rates), and homeowner association fees over the course of the loan.\n*   **Payment Schedule**: The Payment Schedule shows you the breakdown of principal and interest on every monthly payment, and reflects the process known as amortization, by which you pay significantly more toward interest than the principal balance in early loan installments, and gradually shift to more principal and less interest over the life of the loan.\nIf you must pay for mortgage insurance, you can use the Payment Schedule to estimate when you might be able to have it removed from the loan. Look in the Total Principal Paid column for the first month in which the listed figure exceeds 20% of the total home price. If you put 10% down, that’ll likely be about 12 years into a 30-year mortgage.\nYou can print the contents of either the Payment Summary or Payment Schedule tabs to save for comparison purposes if you’re running the numbers on several loan offers.\nHow Much Mortgage Can I Afford With My Salary?\n----------------------------------------------\nWhen a mortgage lender is deciding how much it will lend you (or if it will lend to you), it considers your monthly income and, more important, how large a percentage of it you put toward debt payments. The percentage of your monthly pretax income used to pay debt is called debt-to-income ratio (DTI), and from a lender’s standpoint, the lower your DTI ratio is, the better. The calculations can be somewhat complex, but many mortgage lenders decline to issue loans that raise the borrower’s DTI ratio to more than 36%; and under federal home-lending guidelines, a loan must not cause the borrower’s DTI ratio to exceed 43%. This will give you a good idea of how much mortgage you can afford.\nWhat Credit Score Do I Need to Buy a House?\n-------------------------------------------\nCredit scores do not factor into the mortgage calculator directly, but they have a major influence on the interest rate charged on your loan. Credit scores are designed to predict your likelihood of defaulting on a loan, or going 90 days without making a payment. People with lower credit scores are statistically more likely to default than those with higher credit scores. A widespread lending industry practice known as risk-based pricing typically assigns higher interest rates to loan applicants with lower credit scores and reserves the lowest (most affordable) rates for applicants with high credit scores.\nLenders make their own determinations, based on prevailing interest rates and their own lending strategies, when deciding which credit scores ranges they will assign which interest rates. Because each lender’s approach is different, it’s prudent to apply to multiple lenders when seeking a mortgage, because some may offer you a lower interest rate than others.\nEach lender typically requires a minimum credit score in order to consider a mortgage application. If your score falls below a lender’s minimum threshold, they can deny your application. It’s important to check your credit three to six months before you plan to apply for a mortgage to determine whether you should take some time to make improvements first. You can check your credit score and report for free from Experian to see where you stand and what measures you may be able to take, such as paying down credit card balances or bringing any past-due accounts current, before seeking a mortgage.\nHow Much Interest Will I Pay on a Mortgage?\n-------------------------------------------\nYou can use the Experian mortgage calculator to determine how much interest you can expect to pay on a loan for a specific amount, on a loan with a known repayment term and a set interest rate. In general, the amount of interest you pay will depend on the following:\n*   **The total cost of the house**: The more expensive the house, the more sizable loan you’ll need.\n*   **The size of your down payment**: The larger your down payment, as a percentage of the total home cost, the less money you’ll have to borrow in the form of a mortgage.\n*   **The loan term**: All else being equal, a longer loan term will mean smaller monthly payments, but more interest paid over the life of the loan.\n*   **The interest rate**: The higher the interest rate, the more you’ll spend in total interest payment—and your mortgage interest rate is strongly influenced by your credit score. Lenders typically offer their lowest interest rates to applicants with very good to exceptional credit scores. While it may be possible to get a mortgage with a credit score as low as 500, the interest rates associated with that loan will likely be relatively steep.\n    If your mortgage is a fixed-rate loan, you can calculate the amount you’ll pay each month with certainty. If you get an adjustable-rate mortgage (ARM), you’ll be charged an introductory interest rate for a specified number of years (typically one, but sometimes three or five), and then the interest rate will change annually. (If you’re using the Experian Mortgage Calculator to price out an ARM, you’ll need to update the calculation annually to recalculate the total payments for the next 12 months, and then revisit the calculations again when you receive the rate for the following year.)\nCompare Mortgage Offers\n-----------------------\nYou can use the Experian Mortgage Calculator before and after you actually apply for mortgage loans. Enter the basic required data—Home Price, Down Payment, Term (in years) and Interest Rate—from mortgage ads or the pre-qualification widgets on lender websites to get a rough idea of how much you can afford to borrow, and to get a ballpark idea of what your monthly charges will be based on different interest rates and loan terms.\nOnce you have a specific home in mind, have submitted formal applications, and have received one or more loan offers, you can again plug in the details from each offer, plus details on property taxes, homeowner insurance and, if applicable, mortgage insurance charges and HOA fees. These details can help you compare the overall costs of different loan offers, and let you see which deal is the best for you. END
 TITLE: Personal Loan Calculator CONTENT: Before taking out a personal loan, you’ll want to compare your options and figure out which loan will be best for you. This personal loan calculator can help you estimate your monthly payments based on a few pieces of information. You can then change the loan amount, interest rate or repayment term to see how a different loan might be better or worse for your situation.\n†The information provided is for educational purposes only and should not be construed as financial advice. Experian cannot guarantee the accuracy of the results provided. Your lender may charge other fees which have not been factored in this calculation. These results, based on the information provided by you, represent an estimate and you should consult your own financial advisor regarding your particular needs.\nHow to Use This Calculator\n--------------------------\nThe personal loan calculator estimates your monthly payment once you input the loan amount, estimated interest rate and repayment term. By changing one or more of the numbers, you can see how different loan offers will impact your monthly payment and how much interest you’ll pay overall.\nGenerally, a loan with a longer term will have a lower monthly payment, as you’re taking more time to repay what you owe. But you’ll also wind up paying more interest because it will accrue over a longer period. Some lenders may also charge a higher interest rate if you choose a longer term.\nAs you compare lenders and loan offers, also find out whether the loans you’re considering charge an origination fee—a common fee on personal loans that’s generally a percentage of the loan amount.\nLenders may deduct this fee from your loan disbursement—for example, sending you $9,500 if you accept a $10,000 loan that has a 5% origination fee. In these cases, use the full loan amount (not how much you receive), as that’s the amount you’ll need to repay. But if a lender adds the origination fee to your loan rather than subtracting it from your disbursement, use the total of the loan plus the fee as your loan amount in the calculator. In both situations you’ll be paying interest on the full outstanding amount, which may include the fee.\nBased on the numbers you enter, our calculator’s results will show you how many months it will take to pay off the loan, when it will be paid off and how much you’ll pay in interest.\nWhat Can a Personal Loan Be Used For?\n-------------------------------------\nOne of the benefits of taking out a personal loan is that you can use the money for almost anything. Popular uses include paying for home or vehicle repairs, medical bills, weddings and paying off higher-interest loans or credit cards.\nCredit card debt consolidation is one of several ways you can use a personal loan to save money by refinancing higher-rate debts. For example, say you have $10,000 in credit card debt at a 16% APR and get approved for a $10,000 personal loan with a 10% APR and no origination fee. If you take the same amount of time to pay off the debt—36 months—you’ll save about $1,040 by paying off the credit card debts with the lower-rate personal loan instead of leaving the debt on your credit card.\nYou could also take out one loan and use it for several purposes. Read the lender’s terms before applying, however, because the lender may limit how you can use the funds. Common restrictions include:\n*   Gambling\n*   Investments\n*   Post-secondary education\n*   Business\n*   Anything illegal\nThe restrictions can vary by lender. If you’re looking for a personal loan for one of these reasons (aside from illegal activity), you may be able to find a lender that allows it. Sometimes, though, a more specific type of loan, such as a student loan or small business loan, may be a better fit over a personal loan.\nHow to Apply for a Personal Loan\n--------------------------------\nMany lenders let you apply for a personal loan online and complete the entire process electronically. Even the few that require you to go into a branch to complete the application may let you start the process online.\nOften, you can start the process with a prequalification that only requires a soft credit check, which won’t hurt your credit scores. You may need to share your personal information, such as your name, address, date of birth and Social Security number, along with an estimate for how much you want to borrow and how you intend to use the money. You also might have to create an online account with the lender before getting your results.\nIf you’re preaqualified for a loan, you’ll see the estimated loan offers and can choose one before proceeding with an application. If you’re not prequalified, you likely won’t get approved for the loan and shouldn’t submit an application, as the application can result in a hard inquiry that may hurt your credit.\nLenders may ask for more information or verification documents if you proceed with your loan request. For example, you may have to share copies of a government-issued ID, tax returns or pay stubs to verify your identity and income.\nEven if you’re prequalified, you might not get approved for a loan if you can’t verify the information you originally shared—or if your income, employment or creditworthiness changed since you were preapproved.\nIf the lender verifies and approves your application, it can then disburse your loan. Often, lenders can send you the money electronically, and it will appear in your account within a few business days.\nHow a Personal Loan Can Impact Your Credit Score\n------------------------------------------------\nA personal loan can impact your credit scores in several ways. When you apply for a loan, the lender may review your credit, and the resulting hard inquiry could hurt your scores a little. Once you open your account, the new account could also lower the average age of accounts in your credit history, which can also hurt scores.\nThe negative impact from these initial score drops fades over time, however, and opening a new account can also help improve your credit in several ways. If you haven’t had an installment loan before, the personal loan could add to your credit mix, which can help your scores. Also, if you’re using the loan to pay down credit card debt, you’ll be decreasing your credit utilization, which can increase your credit scores.\nAs you repay the loan, your on-time payments can also help you build a positive credit history, one of the most important credit scoring factors. Although, conversely, missing a payment could hurt your scores.\nCheck Your Personal Loan Matches\n--------------------------------\nExperian’s CreditMatchTM tool can show you personalized loan offers from our partners. You can sort by the estimated APR, repayment terms or estimated monthly payments to narrow in on a few of the best-fitting options. END
 TITLE: U.S. Auto Debt Grows to Record High Despite Pandemic CONTENT: Auto Debt Climbs to Record High of $1.37 Trillion\n-------------------------------------------------\nBetween 2019 and Q4 2020, overall auto debt in the U.S. grew by $80 billion to $1.37 trillion—a 6% increase, according to Experian data. That expansion mirrors the 6% average auto debt growth rate over the past decade. In other words, despite changes in consumers' daily travel and commuting habits, the automotive financing market didn't experience major disruption similar to what occurred with other types of consumer debts.\nSource: Experian\nCompared with other types of consumer debt, auto loans saw one of the more modest increases in overall balances during the past year. END
 TITLE: U.S. Auto Debt Grows to Record High Despite Pandemic CONTENT: Average Consumer Auto Debt Balances Grow Amid Pandemic\n------------------------------------------------------\nAlong with overall debt, consumers saw little growth in their average balances, with the amount they owe increasing by $634—3%—since 2019, according to Experian data. That's just 1 percentage point more than the rate at which consumer balances grew in 2019, again reinforcing that consumer auto debt didn't undergo drastic change during the pandemic.\nSource: Experian\nWhen compared with the significant changes to other debt balances—student loan balances grew by 9% between 2019 and Q3 2020 and credit card debt decreased by 14% during that time—auto debt's consistent annual growth pattern may have more complexity than appears.\n\"COVID-19 caused some disruptions in the market that defied ongoing trends that we had seen,\" says Melinda Zabritski, Experian's senior director of automotive financial solutions. \"Perhaps one of the most unexpected trends was that delinquencies didn't rise significantly during the pandemic, though we know that a variety of accommodation programs, along with stimulus packages, likely helped keep them down.\"\nAs part of the Coronavirus Aid, Relief and Economic Security (CARES) Act, the federal government suspended student loan repayment and issued guidance that directed mortgage lenders to allow forbearance for those impacted by the pandemic.\nThese measures aimed to offer relief to consumers in need—and while they appear to have been successful (so far), the efforts also translated to rising balances as fewer accounts are being paid down. Take for example the case of student loans, which increased by 12% due in large part to continued borrowing coupled with non-payment of existing debt.\nIn the case of auto debt, however, there was no clear guidance from the federal government. As a result, consumers in need of financial relief had to find it on their own by way of refinancing, selling their car or taking other action. Some had the option of negotiating with their lenders, many of which announced willingness to work with borrowers in need at the onset of the pandemic. While it's unclear how many lenders made special repayment arrangements for borrowers financially impacted by the pandemic, it's clear whatever actions they took did not change the growth pattern of auto debt. END
 TITLE: U.S. Auto Debt Grows to Record High Despite Pandemic CONTENT: Auto Delinquencies Dipped But Are Now on the Rise\n-------------------------------------------------\nWithout sweeping policies that paused or helped to defer auto loan repayment, consumers had to either continue paying their auto debt or find other means to avoid missing payments.\nWhile rates of most delinquency decreased sharply during the first months of the pandemic, data from Q4 2020 shows that the number of past-due accounts is creeping up again. From Q3 to Q4 of 2020, the ratio of accounts 30 to 59 days past due (DPD) increased by 12%; 60 to 89 DPD accounts rose by 18%; and 90 to 180 DPD accounts rose by 3%.\nThat followed the period between 2019 and Q3 2020 when consumers saw the percentage of their accounts 30 to 59 days past due drop by 26%, according to Experian data. The ratio of delinquent accounts 60 to 89 DPD also fell by 22%.\nThe only exception to delinquency improvement over that time period was the percentage of accounts severely behind (90 to 180 DPD), which saw an increase between 2019 and Q3 2020. Among other possible factors, this group could include people who were past due at the onset of the pandemic and were not able bring their accounts up to date during the crisis.\nThough delinquencies (those in the 30 to 59 and 60 to 89 DPD ranges) for auto debt were ultimately down between 2019 and Q4 2020, the slow increase observed in the last quarter may indicate that change is coming.\nSource: Experian\nOverall, the decline in delinquent auto accounts is positive, as payment history is the most important aspect of a consumer's credit score. So far during the pandemic, the average FICO® Score☉ has increased, growing 7 points to a record of 710 in 2020. END
 TITLE: U.S. Auto Debt Grows to Record High Despite Pandemic CONTENT: Car Buyers Skew Prime During Pandemic\n-------------------------------------\nOverall, consumers with credit ratings in the prime and super prime ranges led new borrowing, while those in the subprime and deep subprime groups saw declines in new auto originations. The following VantageScore ranges were used to establish score groups:\n*   **Deep subprime**: 300-500\n*   **Subprime**: 501-600\n*   **Nonprime**: 601-660\n*   **Prime**: 661-780\n*   **Super prime**: 781-850\nIn Q4 2020, 43% of total loan originations were attributed to prime consumers and 20% to the super prime borrower segment, an increase from 2019, according to data from Experian's Q4 2020 State of the Automotive Finance Market report. On the other end of the spectrum, subprime and deep subprime borrowers reduced their share of originations, dipping to 16% and 2%, respectively.\n\"Stimulus packages likely played a part in financing volumes, but with that said, subprime borrowers were probably some of the most impacted by COVID-19, and may not have been in the market for a vehicle,\" Zabritski says. \"Overall, we saw subprime originations decline at a faster pace in 2020 than previously.\" END
 TITLE: U.S. Auto Debt Grows to Record High Despite Pandemic CONTENT: Auto Balances Increase Most Across High Credit Ranges\n-----------------------------------------------------\nBroken out by FICO® Score range, it's clear that those with scores in the \"good\" and \"very good\" ranges—who are considered prime borrowers—experienced the biggest changes in auto debt. Consumers with scores between 300 and 579 saw balances increase by only 1%—significantly less than the 3% to 4% growth seen by other groups.\nSource: Experian END
 TITLE: U.S. Auto Debt Grows to Record High Despite Pandemic CONTENT: Young Generations Again Drive Auto Debt Growth\n----------------------------------------------\nSimilar to what was seen across other types of debt in the past year, the youngest adult consumers were the ones who saw the greatest change in their auto debt in 2020. Generation Z—consumers ages 18 to 23 as of 2020—saw a whopping 12% increase, which is nearly six times the growth of the silent generation, who have nearly equivalent levels of auto debt.\nSource: Experian; ages as of 2020 END
 TITLE: U.S. Auto Debt Grows to Record High Despite Pandemic CONTENT: Consumers in All States See Increase in Auto Balances\n-----------------------------------------------------\nConsumers in all 50 states and Washington, D.C., saw their average auto balance increase in 2020, according to Experian data. In the majority of states—35 to be exact—consumers saw increases that at least matched the national average growth rate of 3%. Borrowers in nearly half of states—24—saw an average growth rate of at least 4%. And as Americans overall saw modest growth in their balances, consumers in one-third of the nation saw average growth of above 5%.\nThe varying change seen across the states is a reminder that the pandemic has had disparate impacts, many of which are based on geography.\nSource: Experian END
 TITLE: U.S. Auto Debt Grows to Record High Despite Pandemic CONTENT: Auto Leasing Slows, While Electric Vehicles' Popularity Surges\n--------------------------------------------------------------\nWhile most borrowing trends have remained relatively steady since 2019, certain areas of the automobile market are experiencing changes worth highlighting. Experian's Q4 2020 State of the Automotive Finance Market report gives a detailed overview of changes in the auto finance market. Here are the highlights from Q4 2020:\n*   **Consumers are leasing vehicles less often.** The percentage of all new vehicles that are leased dropped to 27% in Q4 2020, down from 31% in 2019. Lease payments have ticked up for nearly all consumers, except those in the prime and super prime segments who saw lease payments decrease in 2020.\n*   **Electric and hybrid cars are growing in popularity.** Electric and hybrid vehicles are becoming more commonplace, and their popularity spiked in 2020. Electric and hybrid vehicles now make up 7% of new financing—an increase from 4% in 2019. Toyota leads the market with the largest share (39%) of electric and hybrid vehicles, followed by Tesla (26%) in Q4 2020.\n*   **Loan payments are growing, despite lower interest rates.** The average interest rate for an auto loan was 4.31% in Q4 2020, down from 5.25% from the same period the previous year. But even with interest rates on the decline, the average new loan amount spiked along with the average monthly payment. The average amount financed grew by nearly $2,000 to a total of $35,228 and the average monthly payment grew by $21 to $563 in Q4 2020.\n\"The automotive finance industry is a resilient one, and we saw that again in 2020,\" says Zabritski. \"Despite the turbulent year, we did see automotive portfolio balances grow, which is a positive sign, though it's likely driven by the higher average loan amounts. END
 TITLE: How to Get a Debt Consolidation Loan with Bad Credit? CONTENT: Consolidating Debt with Bad or Average Credit\n---------------------------------------------\nThe FICO® Score☉ , which ranges between 300 and 850, is the most commonly-used credit scoring model by lenders for evaluating a borrower's creditworthiness and has several ranges. Credit scores above 670 are considered good, very good or exceptional depending on the score. A \"fair\" score ranges from 580 to 669 and any score that is lower than 579 is considered \"poor.\" Knowing your credit score is important in determining your options, but even with less than perfect credit, there are still ways you can consolidate your debt. END
 TITLE: How to Get a Debt Consolidation Loan with Bad Credit? CONTENT: While there are debt consolidation options available for people with \"poor\" scores, they often come with high-interest rates that may be higher than the rates of your current loans.\nA good option would be to look at online lenders like Upstart—which is an Experian personal loan partner. Upstart looks at alternative data, beyond credit reports and scores, to determine whether a person qualifies for a loan. Factors like job history, income and education influence whether a candidate qualifies for a loan and a lower rate.\n* * *\n### Upstart\n[](;site=exp&placement=ae-single-embed&sessionid=8952CE01-C3FF-5C0C-1210-7E33C129F096&pageid=blogs:ask-experian:how-to-get-a-debt-consolidation-loan-with-bad-credit&previouspageid=&ecsstaticid=8A13831A-7B59-4855-92DA-BEBA4848241A)[Apply](;site=exp&placement=ae-single-embed&sessionid=8952CE01-C3FF-5C0C-1210-7E33C129F096&pageid=blogs:ask-experian:how-to-get-a-debt-consolidation-loan-with-bad-credit&previouspageid=&ecsstaticid=8A13831A-7B59-4855-92DA-BEBA4848241A)\non Upstart's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,262\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Loan amounts from $1,000 - $50,000\n*   APRs from 6.46% - 35.99% with loan terms of 3 or 5 years\n*   Won't affect your credit score\n*   You can have funds in as fast as 1 day\n*   You are more than your credit score. On Upstart your education and experience help you get the rate you deserve.\nDisclosure\nUpstart offers loans of up to $50,000 that can be used to pay off credit cards and consolidate other types of debt. Upstart has an easy application process and getting prequalified will not affect your credit scores.\n* * *\n### LendingPoint\n[](;site=exp&placement=ae-single-embed&sessionid=8952CE01-C3FF-5C0C-1210-7E33C129F096&pageid=blogs:ask-experian:how-to-get-a-debt-consolidation-loan-with-bad-credit&previouspageid=&ecsstaticid=8A13831A-7B59-4855-92DA-BEBA4848241A)[Apply](;site=exp&placement=ae-single-embed&sessionid=8952CE01-C3FF-5C0C-1210-7E33C129F096&pageid=blogs:ask-experian:how-to-get-a-debt-consolidation-loan-with-bad-credit&previouspageid=&ecsstaticid=8A13831A-7B59-4855-92DA-BEBA4848241A)\non LendingPoint's website\n**Recommended FICO® Score\\***\nFair - Good\nAmount\nAvailable loan amounts: $2,000 to $25,000\nEst. monthly payment: $95 to $1,437\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   Personal loans from $2,000 to $25,000\n*   Rates from 15.49% to 35.99% APR with no prepayment penalties\n*   Check your rate for free without impacting your credit score\n*   Qualified customers receive offers in three simple steps, and funds in as little as 24 hours if approved\n*   Simple and Secure - quick online application\n*   LendingPoint's customer success representatives are available online or by phone 24\/7, just call 888-969-0959\n*   Terms from 24 - 60 months\nDisclosure\nLendingPoint offers loans to those with credit scores in the \"fair\" or \"good\" range that can be anywhere from $2,000 to $25,000. LendingPoint allows you to check your rate before you apply and doesn't ding your credit score for doing so. In addition to your credit score, LendingPoint also considers factors such as your job history and income when deciding your loan terms.\n* * *\n### SoFi\n[](;site=exp&placement=ae-single-embed&sessionid=8952CE01-C3FF-5C0C-1210-7E33C129F096&pageid=blogs:ask-experian:how-to-get-a-debt-consolidation-loan-with-bad-credit&previouspageid=&ecsstaticid=8A13831A-7B59-4855-92DA-BEBA4848241A)[Apply](;site=exp&placement=ae-single-embed&sessionid=8952CE01-C3FF-5C0C-1210-7E33C129F096&pageid=blogs:ask-experian:how-to-get-a-debt-consolidation-loan-with-bad-credit&previouspageid=&ecsstaticid=8A13831A-7B59-4855-92DA-BEBA4848241A)\non SoFi's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $5,000 to $100,000\nEst. monthly payment: $217 to $4,944\nGrace period: 10 days\nApplication fee: $0\n##### Loan Details\n*   Personal Loans with low fixed rates\n*   Borrow up to $100,000\n*   No Origination Fees, No Prepayment Penalties, and No Late or Overdraft Fees\n*   Simple online application with live support 7 days a week\n*   Apply Now\nDisclosure\nIf your credit scores are in the good to exceptional range, SoFi provides loans from $5,000 to $100,000 without charging application or origination fees. SoFi is a great option if you need a large loan and can stand to wait a few days for your funds to arrive.\nWhat Are the Benefits of a Debt Consolidation Loan?\n---------------------------------------------------\nOne of the main advantages of a debt consolidation loan is eliminating the task of paying multiple lenders each month. When you consolidate all your existing debt into one new loan, you only have to make payments to your new lender. Making only one payment is not only easier, but it can save you from dealing with late and missed payments—which can occur when juggling multiple different payments each month.\nPayment history is the most important factor in calculating your credit score—accounting for 35% of your FICO® Score—and it is important to avoid paying any loan payments past their due date. Late payments can easily occur when someone has multiple loan payments each month and is not using auto pay. Another advantage of a debt consolidation loan is lowering the amount of interest you're paying on your outstanding debt. People typically use debt consolidation loans to pay off their high-interest debt—like credit card debt, which can have interest rates that range from 18-25%. In most cases, a debt consolidation loan will have a much lower interest rate depending on your creditworthiness, saving you money on interest over the life of your loan.\nImagine you had $5,000 worth of credit card debt with an APR of about 25%. Over 36 months, the monthly payment on the debt would be approximately $240 and you would pay a total of $2,500 in total interest. If you were to consolidate this debt into a new loan with an average APR of 17% over 36 months, the total amount you pay toward interest would drop to around $1,700 and your monthly payment would come down to $200. In this scenario, the lower the APR on your new loan, the less you will pay toward interest over time.\nHow Do I Qualify for a Debt Consolidation Loan\n----------------------------------------------\nDepending on your credit range, taking out a debt consolidation loan might not be the best idea. If you have a \"poor\" credit score, it may be difficult to get approved for a debt consolidation loan. Lenders often see people in \"poor\" credit ranges as risky, and as a result, might not issue a new loan to someone in that range.\nAnother potential issue with getting a debt consolidation loan with a \"poor\" credit score is that the interest rate on your new loan could, in some cases, be higher than the APR on your existing debt. Lenders often use your creditworthiness to establish what interest rate you get, so people with \"poor\" or even \"fair\" credit scores should be careful not take on new loans with higher rates.\nDebt Consolidation Loan Options for Military Members\n----------------------------------------------------\nMembers of the military can sometimes have more difficulty obtaining new credit from conventional lenders. Spending extended periods away from home without the need to take loans and utilize lines of revolving credit, members of the military can often have a less robust credit history.\nAs a result, there are specialized private lenders that service members of the military exclusively. Through these lending institutions, members of the military can apply for auto loans, mortgages and even personal loans that can be used for debt consolidation.\nObtaining a personal loan from a military lender is one option for military members trying to consolidate their existing debt. Military lenders will consider applicants with a lower score, but may still find people with a severely compromised credit history risky.\n* * *\n### Prosper\n[](;site=exp&placement=ae-single-embed&sessionid=8952CE01-C3FF-5C0C-1210-7E33C129F096&pageid=blogs:ask-experian:how-to-get-a-debt-consolidation-loan-with-bad-credit&previouspageid=&ecsstaticid=8A13831A-7B59-4855-92DA-BEBA4848241A)[Apply](;site=exp&placement=ae-single-embed&sessionid=8952CE01-C3FF-5C0C-1210-7E33C129F096&pageid=blogs:ask-experian:how-to-get-a-debt-consolidation-loan-with-bad-credit&previouspageid=&ecsstaticid=8A13831A-7B59-4855-92DA-BEBA4848241A)\non Prosper's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $2,000 to $40,000\nEst. monthly payment: $61 to $1,720\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   640 minimum FICO® Score\n*   More than $16 billion loans funded\n*   Consolidate debt, finance a home improvement project, or pay off medical expenses\n*   9 out of 10 customers would recommend Prosper to friends or family\\*\\*\n*   Co-borrower option available. Applying with a co-borrower could help improve your rates.\n*   Get your money in as few as 3 days - your monthly payment stays the same\nDisclosure\nProsper works with members of the military to provide fixed-rate loans without requiring the borrower to visit a physical bank location. Prosper provides unsecured loans as large as $40,000 for those with good to very good credit scores.\n* * *\nAlternatives to Debt Consolidation\n----------------------------------\nWhile consolidating your debt may seem like the best way to lower your monthly payments or eliminate the hassle of paying multiple bills each month, for some people other debt management tactics might be a better option.\n*   ### Debt Management Plans\n    Before you consider applying for a loan, one option is to use a debt management plan to consolidate your monthly debt payments. With a plan like this, you must first find a credit counselor and work with them to formulate and stick to a repayment plan. Once you and your counselor agree on a plan, they will often try to negotiate with your creditors to see if they can get you a lower monthly payment and sometimes a lower interest rate.\n    In this scenario, once the counselor has finished negotiating, you will pay their organization directly each month and they will make all of your monthly debt payments for you.\n    A debt management plan may be a good alternative for people with \"poor\" credit scores who may not be approved for a debt consolidation loan.\n*   ### Credit Card Usage\n    Responsible credit card usage can help make sure that you don't rack up too much debt and don't get behind on payments. Knowing how to pay down credit card debt can be extremely helpful and can help you save money over time.\n*   ### Creating a Budget\n    Creating a budget and monitoring your expenses is a vital step in understanding how much you can afford to pay toward existing debt each month. Once a budget is in place, you will be able to set aside a set amount toward your debt payments and inch toward your goal of paying your loans off.\n*   ### Bankruptcy\n    If you are overwhelmed with debt and see no way of paying it off, bankruptcy may help you find relief. Filing for bankruptcy, however, will remain on your credit file for seven to 10 years and may affect your ability to obtain other loans in the future.\nIf you think debt consolidation might help you, but you are unsure what your credit score is, Experian's CreditMatchTM tool can help you find a personalized loan based your FICO® Score.\nPersonal Loan Calculator\n------------------------\n†The information provided is for educational purposes only and should not be construed as financial advice. Experian cannot guarantee the accuracy of the results provided. Your lender may charge other fees which have not been factored in this calculation. These results, based on the information provided by you, represent an estimate and you should consult your own financial advisor regarding your particular needs.\n* * *\n**Want to instantly increase your credit score?** Experian Boost™ helps by giving you credit for the utility and mobile phone bills you're already paying. Until now, those payments did not positively impact your score.\nThis service is completely free and can boost your credit scores fast by using your own positive payment history. It can also help those with poor or limited credit situations. Other services such as credit repair may cost you up to thousands and only help remove inaccuracies from your credit report. END
 TITLE: How to Get a Debt Consolidation Loan with Bad Credit? CONTENT: * * *\n### Upstart\n[](;site=exp&placement=ae-single-embed&sessionid=8952CE01-C3FF-5C0C-1210-7E33C129F096&pageid=blogs:ask-experian:how-to-get-a-debt-consolidation-loan-with-bad-credit&previouspageid=&ecsstaticid=8A13831A-7B59-4855-92DA-BEBA4848241A)[Apply](;site=exp&placement=ae-single-embed&sessionid=8952CE01-C3FF-5C0C-1210-7E33C129F096&pageid=blogs:ask-experian:how-to-get-a-debt-consolidation-loan-with-bad-credit&previouspageid=&ecsstaticid=8A13831A-7B59-4855-92DA-BEBA4848241A)\non Upstart's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,262\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Loan amounts from $1,000 - $50,000\n*   APRs from 6.46% - 35.99% with loan terms of 3 or 5 years\n*   Won't affect your credit score\n*   You can have funds in as fast as 1 day\n*   You are more than your credit score. On Upstart your education and experience help you get the rate you deserve.\nDisclosure\nUpstart offers loans of up to $50,000 that can be used to pay off credit cards and consolidate other types of debt. Upstart has an easy application process and getting prequalified will not affect your credit scores. END
 TITLE: How to Get a Debt Consolidation Loan with Bad Credit? CONTENT: * * *\n### LendingPoint\n[](;site=exp&placement=ae-single-embed&sessionid=8952CE01-C3FF-5C0C-1210-7E33C129F096&pageid=blogs:ask-experian:how-to-get-a-debt-consolidation-loan-with-bad-credit&previouspageid=&ecsstaticid=8A13831A-7B59-4855-92DA-BEBA4848241A)[Apply](;site=exp&placement=ae-single-embed&sessionid=8952CE01-C3FF-5C0C-1210-7E33C129F096&pageid=blogs:ask-experian:how-to-get-a-debt-consolidation-loan-with-bad-credit&previouspageid=&ecsstaticid=8A13831A-7B59-4855-92DA-BEBA4848241A)\non LendingPoint's website\n**Recommended FICO® Score\\***\nFair - Good\nAmount\nAvailable loan amounts: $2,000 to $25,000\nEst. monthly payment: $95 to $1,437\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   Personal loans from $2,000 to $25,000\n*   Rates from 15.49% to 35.99% APR with no prepayment penalties\n*   Check your rate for free without impacting your credit score\n*   Qualified customers receive offers in three simple steps, and funds in as little as 24 hours if approved\n*   Simple and Secure - quick online application\n*   LendingPoint's customer success representatives are available online or by phone 24\/7, just call 888-969-0959\n*   Terms from 24 - 60 months\nDisclosure\nLendingPoint offers loans to those with credit scores in the \"fair\" or \"good\" range that can be anywhere from $2,000 to $25,000. LendingPoint allows you to check your rate before you apply and doesn't ding your credit score for doing so. In addition to your credit score, LendingPoint also considers factors such as your job history and income when deciding your loan terms. END
 TITLE: How to Get a Debt Consolidation Loan with Bad Credit? CONTENT: * * *\n### SoFi\n[](;site=exp&placement=ae-single-embed&sessionid=8952CE01-C3FF-5C0C-1210-7E33C129F096&pageid=blogs:ask-experian:how-to-get-a-debt-consolidation-loan-with-bad-credit&previouspageid=&ecsstaticid=8A13831A-7B59-4855-92DA-BEBA4848241A)[Apply](;site=exp&placement=ae-single-embed&sessionid=8952CE01-C3FF-5C0C-1210-7E33C129F096&pageid=blogs:ask-experian:how-to-get-a-debt-consolidation-loan-with-bad-credit&previouspageid=&ecsstaticid=8A13831A-7B59-4855-92DA-BEBA4848241A)\non SoFi's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $5,000 to $100,000\nEst. monthly payment: $217 to $4,944\nGrace period: 10 days\nApplication fee: $0\n##### Loan Details\n*   Personal Loans with low fixed rates\n*   Borrow up to $100,000\n*   No Origination Fees, No Prepayment Penalties, and No Late or Overdraft Fees\n*   Simple online application with live support 7 days a week\n*   Apply Now\nDisclosure\nIf your credit scores are in the good to exceptional range, SoFi provides loans from $5,000 to $100,000 without charging application or origination fees. SoFi is a great option if you need a large loan and can stand to wait a few days for your funds to arrive. END
 TITLE: How to Get a Debt Consolidation Loan with Bad Credit? CONTENT: What Are the Benefits of a Debt Consolidation Loan?\n---------------------------------------------------\nOne of the main advantages of a debt consolidation loan is eliminating the task of paying multiple lenders each month. When you consolidate all your existing debt into one new loan, you only have to make payments to your new lender. Making only one payment is not only easier, but it can save you from dealing with late and missed payments—which can occur when juggling multiple different payments each month.\nPayment history is the most important factor in calculating your credit score—accounting for 35% of your FICO® Score—and it is important to avoid paying any loan payments past their due date. Late payments can easily occur when someone has multiple loan payments each month and is not using auto pay. Another advantage of a debt consolidation loan is lowering the amount of interest you're paying on your outstanding debt. People typically use debt consolidation loans to pay off their high-interest debt—like credit card debt, which can have interest rates that range from 18-25%. In most cases, a debt consolidation loan will have a much lower interest rate depending on your creditworthiness, saving you money on interest over the life of your loan.\nImagine you had $5,000 worth of credit card debt with an APR of about 25%. Over 36 months, the monthly payment on the debt would be approximately $240 and you would pay a total of $2,500 in total interest. If you were to consolidate this debt into a new loan with an average APR of 17% over 36 months, the total amount you pay toward interest would drop to around $1,700 and your monthly payment would come down to $200. In this scenario, the lower the APR on your new loan, the less you will pay toward interest over time. END
 TITLE: How to Get a Debt Consolidation Loan with Bad Credit? CONTENT: How Do I Qualify for a Debt Consolidation Loan\n----------------------------------------------\nDepending on your credit range, taking out a debt consolidation loan might not be the best idea. If you have a \"poor\" credit score, it may be difficult to get approved for a debt consolidation loan. Lenders often see people in \"poor\" credit ranges as risky, and as a result, might not issue a new loan to someone in that range.\nAnother potential issue with getting a debt consolidation loan with a \"poor\" credit score is that the interest rate on your new loan could, in some cases, be higher than the APR on your existing debt. Lenders often use your creditworthiness to establish what interest rate you get, so people with \"poor\" or even \"fair\" credit scores should be careful not take on new loans with higher rates. END
 TITLE: How to Get a Debt Consolidation Loan with Bad Credit? CONTENT: Debt Consolidation Loan Options for Military Members\n----------------------------------------------------\nMembers of the military can sometimes have more difficulty obtaining new credit from conventional lenders. Spending extended periods away from home without the need to take loans and utilize lines of revolving credit, members of the military can often have a less robust credit history.\nAs a result, there are specialized private lenders that service members of the military exclusively. Through these lending institutions, members of the military can apply for auto loans, mortgages and even personal loans that can be used for debt consolidation.\nObtaining a personal loan from a military lender is one option for military members trying to consolidate their existing debt. Military lenders will consider applicants with a lower score, but may still find people with a severely compromised credit history risky.\n* * *\n### Prosper\n[](;site=exp&placement=ae-single-embed&sessionid=8952CE01-C3FF-5C0C-1210-7E33C129F096&pageid=blogs:ask-experian:how-to-get-a-debt-consolidation-loan-with-bad-credit&previouspageid=&ecsstaticid=8A13831A-7B59-4855-92DA-BEBA4848241A)[Apply](;site=exp&placement=ae-single-embed&sessionid=8952CE01-C3FF-5C0C-1210-7E33C129F096&pageid=blogs:ask-experian:how-to-get-a-debt-consolidation-loan-with-bad-credit&previouspageid=&ecsstaticid=8A13831A-7B59-4855-92DA-BEBA4848241A)\non Prosper's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $2,000 to $40,000\nEst. monthly payment: $61 to $1,720\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   640 minimum FICO® Score\n*   More than $16 billion loans funded\n*   Consolidate debt, finance a home improvement project, or pay off medical expenses\n*   9 out of 10 customers would recommend Prosper to friends or family\\*\\*\n*   Co-borrower option available. Applying with a co-borrower could help improve your rates.\n*   Get your money in as few as 3 days - your monthly payment stays the same\nDisclosure\nProsper works with members of the military to provide fixed-rate loans without requiring the borrower to visit a physical bank location. Prosper provides unsecured loans as large as $40,000 for those with good to very good credit scores.\n* * *\nAlternatives to Debt Consolidation\n----------------------------------\nWhile consolidating your debt may seem like the best way to lower your monthly payments or eliminate the hassle of paying multiple bills each month, for some people other debt management tactics might be a better option.\n*   ### Debt Management Plans\n    Before you consider applying for a loan, one option is to use a debt management plan to consolidate your monthly debt payments. With a plan like this, you must first find a credit counselor and work with them to formulate and stick to a repayment plan. Once you and your counselor agree on a plan, they will often try to negotiate with your creditors to see if they can get you a lower monthly payment and sometimes a lower interest rate.\n    In this scenario, once the counselor has finished negotiating, you will pay their organization directly each month and they will make all of your monthly debt payments for you.\n    A debt management plan may be a good alternative for people with \"poor\" credit scores who may not be approved for a debt consolidation loan.\n*   ### Credit Card Usage\n    Responsible credit card usage can help make sure that you don't rack up too much debt and don't get behind on payments. Knowing how to pay down credit card debt can be extremely helpful and can help you save money over time.\n*   ### Creating a Budget\n    Creating a budget and monitoring your expenses is a vital step in understanding how much you can afford to pay toward existing debt each month. Once a budget is in place, you will be able to set aside a set amount toward your debt payments and inch toward your goal of paying your loans off.\n*   ### Bankruptcy\n    If you are overwhelmed with debt and see no way of paying it off, bankruptcy may help you find relief. Filing for bankruptcy, however, will remain on your credit file for seven to 10 years and may affect your ability to obtain other loans in the future.\nIf you think debt consolidation might help you, but you are unsure what your credit score is, Experian's CreditMatchTM tool can help you find a personalized loan based your FICO® Score.\nPersonal Loan Calculator\n------------------------\n†The information provided is for educational purposes only and should not be construed as financial advice. Experian cannot guarantee the accuracy of the results provided. Your lender may charge other fees which have not been factored in this calculation. These results, based on the information provided by you, represent an estimate and you should consult your own financial advisor regarding your particular needs.\n* * *\n**Want to instantly increase your credit score?** Experian Boost™ helps by giving you credit for the utility and mobile phone bills you're already paying. Until now, those payments did not positively impact your score.\nThis service is completely free and can boost your credit scores fast by using your own positive payment history. It can also help those with poor or limited credit situations. Other services such as credit repair may cost you up to thousands and only help remove inaccuracies from your credit report. END
 TITLE: How to Get a Debt Consolidation Loan with Bad Credit? CONTENT: * * *\n### Prosper\n[](;site=exp&placement=ae-single-embed&sessionid=8952CE01-C3FF-5C0C-1210-7E33C129F096&pageid=blogs:ask-experian:how-to-get-a-debt-consolidation-loan-with-bad-credit&previouspageid=&ecsstaticid=8A13831A-7B59-4855-92DA-BEBA4848241A)[Apply](;site=exp&placement=ae-single-embed&sessionid=8952CE01-C3FF-5C0C-1210-7E33C129F096&pageid=blogs:ask-experian:how-to-get-a-debt-consolidation-loan-with-bad-credit&previouspageid=&ecsstaticid=8A13831A-7B59-4855-92DA-BEBA4848241A)\non Prosper's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $2,000 to $40,000\nEst. monthly payment: $61 to $1,720\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   640 minimum FICO® Score\n*   More than $16 billion loans funded\n*   Consolidate debt, finance a home improvement project, or pay off medical expenses\n*   9 out of 10 customers would recommend Prosper to friends or family\\*\\*\n*   Co-borrower option available. Applying with a co-borrower could help improve your rates.\n*   Get your money in as few as 3 days - your monthly payment stays the same\nDisclosure\nProsper works with members of the military to provide fixed-rate loans without requiring the borrower to visit a physical bank location. Prosper provides unsecured loans as large as $40,000 for those with good to very good credit scores.\n* * * END
 TITLE: How to Get a Debt Consolidation Loan with Bad Credit? CONTENT: Alternatives to Debt Consolidation\n----------------------------------\nWhile consolidating your debt may seem like the best way to lower your monthly payments or eliminate the hassle of paying multiple bills each month, for some people other debt management tactics might be a better option.\n*   ### Debt Management Plans\n    Before you consider applying for a loan, one option is to use a debt management plan to consolidate your monthly debt payments. With a plan like this, you must first find a credit counselor and work with them to formulate and stick to a repayment plan. Once you and your counselor agree on a plan, they will often try to negotiate with your creditors to see if they can get you a lower monthly payment and sometimes a lower interest rate.\n    In this scenario, once the counselor has finished negotiating, you will pay their organization directly each month and they will make all of your monthly debt payments for you.\n    A debt management plan may be a good alternative for people with \"poor\" credit scores who may not be approved for a debt consolidation loan.\n*   ### Credit Card Usage\n    Responsible credit card usage can help make sure that you don't rack up too much debt and don't get behind on payments. Knowing how to pay down credit card debt can be extremely helpful and can help you save money over time.\n*   ### Creating a Budget\n    Creating a budget and monitoring your expenses is a vital step in understanding how much you can afford to pay toward existing debt each month. Once a budget is in place, you will be able to set aside a set amount toward your debt payments and inch toward your goal of paying your loans off.\n*   ### Bankruptcy\n    If you are overwhelmed with debt and see no way of paying it off, bankruptcy may help you find relief. Filing for bankruptcy, however, will remain on your credit file for seven to 10 years and may affect your ability to obtain other loans in the future.\nIf you think debt consolidation might help you, but you are unsure what your credit score is, Experian's CreditMatchTM tool can help you find a personalized loan based your FICO® Score.\nPersonal Loan Calculator\n------------------------\n†The information provided is for educational purposes only and should not be construed as financial advice. Experian cannot guarantee the accuracy of the results provided. Your lender may charge other fees which have not been factored in this calculation. These results, based on the information provided by you, represent an estimate and you should consult your own financial advisor regarding your particular needs. END
 TITLE: Women and Credit 2021: How the Pandemic Affected Women’s Lives—and Finances CONTENT: Credit Trends in 2020: Credit Card Debt Down, Scores Up\n-------------------------------------------------------\nThe COVID-19 pandemic brought with it swift and startling economic distress. According to the Federal Reserve, employment shrank by 20 million jobs between February and May 2020. Meanwhile, U.S. gross domestic product (GDP, or the value of goods and services the country produces in a year) fell 10% in the second quarter (Q2) of 2020 alone, the biggest decrease ever recorded.\nDespite the grim global economic picture, and the difficulties many consumers faced due to lost jobs and income, Experian data shows that on average, debt dropped and credit scores grew in 2020. Credit card debt fell 14% from Q3 2019 to Q3 2020, and average credit utilization—the amount of debt individuals carry compared with their credit limit—fell 12%. Consumers also improved their payment habits: The average portion of credit accounts that were 90 to 180 days past due dropped by 53% from Q3 2019 to Q3 2020.\nSource: Experian\nPayment history and credit utilization are the two main factors in a consumer's credit score. Less debt and more on-time payments led credit scores to increase on average in 2020. The average FICO® Score rose from 703 to 710 between 2019 and 2020, a much larger increase than the average one point per year gain over the past 10 years. END
 TITLE: Women and Credit 2021: How the Pandemic Affected Women’s Lives—and Finances CONTENT: Women's Finances in 2020: Opportunities and Challenges\n------------------------------------------------------\nThe pandemic has affected consumers in markedly different ways. While some lost jobs and paychecks, others benefited from slashed expenses amid steady income. The economic fallout from the pandemic has resulted in a split experience among consumers: About half of adults report that their financial situation is about the same as it was at the start of the pandemic, compared with 21% that say it's worse, according to a March 2021 Pew Research Center survey. Yet half of adults not in retirement say they will have more difficulty achieving their long-term financial goals as a result of the pandemic, according to the same survey.\nThis division in experience is true of both consumers in general and of women in particular, as we found in a February 2021 Experian survey of 347 adult women in the U.S. In our survey, 43% of women said their income stayed roughly the same between March 2020 and February 2021, and 21% said it increased. Additionally, 37% of women said their expenses stayed the same, and 1 in 5 said their expenses went down during the pandemic.\nBut women also experienced many challenges. Among survey respondents, 24% said they have less savings, 18% said they were unable to earn as much money because their industry was affected by the pandemic, and 17% said they have more debt. Of those who said their expenses rose during the pandemic, the most common categories of increased spending were groceries (35%), takeout and restaurant meals (34%) entertainment like movies and streaming services (21%) and utilities (21%).\nWomen have also dealt with specific concerns during the pandemic as a result of the caregiving and domestic work they are still more likely to take on than men. More women than men have left the workforce completely: 2.7 million women between March and September 2020, compared with 1.7 million men, according to the Bureau of Labor Statistics.\nWomen may decide to quit working entirely to care for sick or aging parents, oversee remote schooling for their children, look after small children unable to go to daycare or manage the household. As a result, female participation in the workforce has not been this low since 1988, according to one NPR analysis. END
 TITLE: Women and Credit 2021: How the Pandemic Affected Women’s Lives—and Finances CONTENT: What Women Are Saying About Money in 2020\n-----------------------------------------\nBut even among women who lost jobs, some have taken the chance to pursue paths they might not have otherwise.\nMargo Gabriel, 34, was laid off from her job as a finance assistant at MIT in Boston in February 2020. She had worked there for about five years, and her first step upon learning of her layoff was to seek work in other departments at the university—only to find, when the pandemic hit weeks later, that those positions were suddenly much harder to come by.\n\"When I lost my job, I was so embarrassed,\" she says. \"I had to really come to terms with separating my identity from my job.\"\nGabriel had planned to travel to Lisbon, Portugal, in December 2020, but after losing her job, she decided to take a leap and move to Lisbon in the fall instead. She now makes a living as a writer and editor for U.S. publications in Lisbon, continuing work she had done on the side while working for MIT.\nAcross the world, outside Atlantic City, New Jersey, Rachel Kramer Bussel, 45, also made some changes as a result of the pandemic. In 2020, knowing her expenses would be far reduced due to canceled travel plans, Bussel cut her nonessential expenses drastically. As a result, she paid off the remaining $35,000 of a total $80,000 in tax debt she had accrued and was slowly eliminating via a monthly payment plan.\n\"If there wasn't the pandemic and I had done all my weddings and travel that I was going to throughout the year, I wouldn't have been able to pay it off plus do all those things,\" Bussel says. \"And I know I wouldn't have canceled them just to save money.\"\nThere's no single story that illustrates how COVID-19 has affected women in the U.S., and the many consequences of the pandemic will take more time to unravel. But as vaccines become commonplace and travel begins again, there is hope that more women will have the chance to pursue their goals, financial and otherwise, with the pandemic behind them. END
 TITLE: What Is Account Takeover Fraud and How Can You Prevent It? CONTENT: Account takeover fraud occurs when cybercriminals gain access to your online accounts and use them to withdraw money, make purchases or extract information they can sell or use to access your other accounts. Potential targets of account takeover fraud include social media and email accounts, as well as those you use to shop or handle bank and credit card transactions. During the pandemic, there's been an uptick in government benefits, such as unemployment payments, involved in account takeover fraud—a good example of the opportunistic thinking that drives this trend. END
 TITLE: What Is Account Takeover Fraud and How Can You Prevent It? CONTENT: How Do Criminals Get Your Account Information?\n----------------------------------------------\nFraudsters can buy stolen credentials off the dark web and use them to access your accounts. Where does data on the dark web come from? Data breaches are a prime source. The Identity Theft Resource Center (ITRC) reports that just over 300 million individuals were impacted by publicly reported data breaches in 2020. As massive as that sounds, it was a 66% decrease since 2019. Since its inception in 2005, the ITRC has tracked more than 12,250 data breaches involving billions of individual records. The first half of 2021 saw 846 publicly recorded data breaches, putting this year on pace to break a record for the number of breaches in a single year.\nAdditionally, criminals may use malware, phishing or other methods of identity theft to obtain your login and password information. Once they have credentials, they may attempt credential stuffing, where the login and password from one site is used to try to log in to others. Alternatively, they may execute a brute force attack, which uses bots to try multiple passwords on a single site. END
 TITLE: What Is Account Takeover Fraud and How Can You Prevent It? CONTENT: What Do Fraudsters Do With Stolen Accounts?\n-------------------------------------------\nOnce they gain access to your account, criminals may do any number of things to cause trouble. They may, for example:\n*   Order a new card from your credit card company and use it to make purchases.\n*   Buy a new smartphone from your mobile phone carrier.\n*   Access and redeem your account credits or rewards points for their own benefit.\n*   Make a payment to a fraudulent company from your bank account.\n*   Open a new bank account in your name.\n*   Place orders on a shopping or restaurant delivery site.\n*   Redirect unemployment benefits.\n*   Access and steal personally identifiable information.\n*   Change account information, including your phone number, email, home address or login and passwords.\n*   Use the information they obtain to access other accounts.\n*   Sell the account information on the dark web.\nFor all the problems account takeover can create, it can be difficult to detect. Often, criminals take the extra step of changing your account preferences so you don't receive notifications that might otherwise tip you off that something is amiss. Play defense: Pay attention to password change notifications and other account alerts as they come in before fraudsters have the chance to disable them. If you're notified of activity you don't recognize, look into it right away. END
 TITLE: What Is Account Takeover Fraud and How Can You Prevent It? CONTENT: How Can You Protect Yourself From Account Takeover?\n---------------------------------------------------\nWhat else can you do to reduce your risk of account takeover fraud? Following general best practices for reducing the risk of identity theft is a good place to start. Some factors may be out of your control. For example, your information may be leaked in a data breach without your knowledge or the opportunity to secure your information. You can, however, take steps to limit the ways bad actors can use your data.\n**Be meticulous with passwords.** Hackers will be more successful with their attacks if you tend to use the same logins and passwords on multiple sites. Ideally, you should have a unique, secure password for every online account. Using a secure password manager to generate and store these passwords across devices could be a great help.\n**Use multifactor authentication.** Simply setting up security on your accounts to send a one-time passcode by email or text can help thwart an account takeover. Adding biometrics like face recognition or fingerprints can also be effective. Multifactor authentication isn't available on all accounts, but it is available on many critical ones. Activate it wherever you can.\n**Safeguard your credit.** Even before you fall victim to account takeover, you might want to consider placing a credit report fraud alert or credit freeze with all three credit bureaus. With a fraud alert, credit bureaus will ask creditors to take steps to verify your identity before issuing credit in your name. A credit freeze prevents potential creditors (and others) from viewing your credit report and scores unless you deliberately \"thaw\" your credit information.\n**Consider identity theft protection.** You can get help tracking your identity, accounts and credit file with Experian IdentityWorks℠. With Experian's credit monitoring services, you can keep close tabs on your credit report and scores, receive alerts when changes are made to your financial accounts, scan the dark web and get help if your identity is compromised. END
 TITLE: What Is Account Takeover Fraud and How Can You Prevent It? CONTENT: What to Do if Your Account Has Been Hacked\n------------------------------------------\nIf you discover your account has been hacked, follow these basic steps for dealing with account fraud and identity theft:\n*   **Report the fraud to the company or agency involved.** You may need to close your account or upgrade your account security.\n*   **Check your accounts.** Assess whether your other accounts have been affected, especially those that use the same password.\n*   **Change your passwords.** Update account information for the affected account and any others that share passwords with it. Better yet, you may want to take this opportunity to change and upgrade your passwords across the board.\n*   **Consider your credit.** If you haven't already, you may want to freeze your credit or add a fraud alert to your credit reports and activate credit monitoring. Experian can help you start the recovery process. END
 TITLE: What Is Account Takeover Fraud and How Can You Prevent It? CONTENT: Taking Account of Identity Fraud\n--------------------------------\nAccount takeover fraud is potentially damaging to your finances—and your sense of well-being—and there is no failsafe protection against it. Yet, you can take steps to limit your vulnerabilities and stop account takeover fraud when it happens. Maintaining strong account security and remaining vigilant are both critical. If you need help monitoring activity related to your identity and credit, consider identity theft monitoring and protection, available through Experian IdentityWorks℠. END
 TITLE: What Is Synthetic ID Fraud? CONTENT: How Does Synthetic Identity Fraud Happen?\n-----------------------------------------\nSynthetic identity fraud is one of the fastest-growing types of financial crimes, and it can happen in several ways.\nA fraudster may steal someone's personal information or buy it on the dark web, then combine it with fake information to create a new identity. In some cases, the fraudster might even use a single SSN to create multiple identities.\nFraudsters may then use this new synthetic ID to build credit. It may take months or years to create good credit profiles for their fake identities, and then they \"bust out,\" or borrow a lot of money and disappear.\nSynthetic identities may also be used to fraudulently apply for government benefits, open bank accounts to launder money and commit other nefarious acts. A 2021 Experian report found that fraudsters are even using artificial intelligence to create fake faces in an attempt to fool companies' biometric verification systems.\nAnother way synthetic fraud can happen is when someone uses their real name, date of birth and contact information with an SSN that doesn't belong to them. Sometimes this occurs to unsuspecting consumers who are trying to build or rebuild their credit. They may reach out to a credit repair company that offers to help them \"start over\" with a credit privacy number (CPN). In reality, the CPN may be an SSN that hasn't been assigned to anyone yet or is stolen.\nStolen SSNs often actually belong to children, incarcerated people, homeless people or the elderly—many of whom don't have or actively use their credit information. The consumer might be trying to do the right thing by following a \"professional's\" advice to get their credit on track—but all the while may be inadvertently committing fraud by using the stolen SSN to open new credit accounts.\nOne reason synthetic fraud has been possible is that many organizations couldn't electronically check the name and date of birth associated with the SSN. And, since 2011, SSNs have been assigned at random—which means there isn't a clear link between the number and a person's place or date of birth.\nTo help solve this problem, the Social Security Administration launched an electronic consent-based verification service (eCBSV) in 2020. It's currently in an initial testing period with a select group of participants, including Experian. END
 TITLE: What Is Synthetic ID Fraud? CONTENT: How to Protect Yourself From Identity Theft\n-------------------------------------------\nDetecting synthetic ID theft can be more difficult than detecting other types of identity theft. But here are some things you can do to keep your—and your loved ones'—information protected.\n*   **Monitor your credit.** To check for any unfamiliar accounts and ensure all your information is correct, get your credit reports from all three credit bureaus (Experian, TransUnion and Equifax) at least once a year, which you can do for free through AnnualCreditReport.com. You can also monitor your Experian credit report for free.\n*   **Lock or freeze your credit reports.** This keeps others from opening an account in your name.\n*   **Freeze your children's credit reports.** The credit bureaus will create and then freeze children's credit reports, which could help keep others from using their SSN to open new credit accounts. The process is a little different at each bureau—you can learn about Experian's process.\n*   **Be careful about what you share on social media.** Fraudsters may be able to gather information, such as birthdays, from social media posts.\n*   **Limit sharing SSNs.** This is particularly important if you have children or are a caretaker for an older relative. You can ask organizations if they truly need an SSN, or if a different type of personal information or identification could work instead.\n*   **Keep an eye on your mail.** If you see unusual mail regarding government benefits, Social Security statements or preapproved credit offers for a child, that could be an indication of fraud.\nUnless you're complicit in the creation or use of the fake identity, you likely won't be responsible for any of the fraudulent activity.\nHowever, synthetic identity fraud is far from a victimless crime—as it's sometimes described. Rising fraud rates could increase the cost of credit for everyone and make it more difficult to open a credit account or apply for government benefits. END
 TITLE: What Is Synthetic ID Fraud? CONTENT: See if Your Information Is Already on the Dark Web\n--------------------------------------------------\nIn addition to taking protective measures, you could look to see if your personal information has already been compromised. You can get a free, one-time dark web scan from Experian to check for your SSN, email and phone number.\nIf you want ongoing scans, the Experian IdentityWorks℠ subscriptions include dark web surveillance. Users also get a variety of credit and identity protection services, such as monitoring alerts and identity theft insurance. END
 TITLE: What Is Familiar Fraud and How It Can Affect Your Family? CONTENT: It's easy to assume that con artists are unknown predators lurking in the shadows, but they can also be people close to you. According to Eva Velasquez, president and CEO of the nonprofit Identity Theft Resource Center, this can include a spouse, parent, friend, caregiver or anyone else who has access to your personally identifiable information (PII) or account information. If motivated to do so, they could do the following things in your name without your permission or knowledge:\n*   Open new accounts\n*   Make large purchases\n*   Receive medical care\n*   Commit other identity crimes\nWhen the person committing the fraud is a friend or family member, they may readily have access to your confidential information and devices. This makes it easier to verify your identity. END
 TITLE: What Is Familiar Fraud and How It Can Affect Your Family? CONTENT: How to Help Prevent Familiar Fraud\n----------------------------------\nWhile there are no surefire ways to avoid being targeted, you can take steps that help prevent a familiar fraudster from being successful. Consider the following actions:\n### Place a Security Freeze on Your Credit\nRequesting a security freeze will limit access to your credit reports, including for legitimate purposes. If someone tries to open an account in your name, the lender will not be able to view your reports when attempting to do a credit check and therefore won't be able to approve the account. You can freeze your credit by contacting each of the major credit bureaus (Experian, TransUnion and Equifax). You'll have to remember to \"thaw\" the freeze whenever you want to apply for credit.\n\"Freezing your credit is now free for everyone, including minor children, and it's one of the most robust risk minimization steps you can take,\" Velasquez says. \"If your credit is frozen, another person cannot open new lines of credit using your identity information even if they have your identity credentials or PII.\"\nJust be sure to protect the PIN that's used to thaw your credit, just like you protect other sensitive documents and information.\n### Set Up a Fraud Alert\nAdding a fraud alert to your credit reports is usually a quick and easy process and may be preferable to a credit freeze if you plan to apply for credit in the near future. It adds a notification to your credit file that asks lenders to take additional steps to verify your identity before approving any new credit requests. You only need to request a fraud alert with one of the credit bureaus and it will be added to all three of your credit reports.\nA temporary fraud alert lasts for one year and can be canceled at any time. If you know you've been the victim of identity theft, you can opt for an extended fraud alert, which lasts seven years. Some people prefer fraud alerts over credit freezes because they don't require you to thaw your credit when completing a legitimate credit application.\n### Monitor Your Accounts for Suspicious Activity\nStaying on top of your accounts can alert you to potential familiar fraud. \"If you check your accounts on a consistent basis, you should be able to catch any unauthorized purchases and take the appropriate steps to resolve the fraud,\" Velasquez says.\nIt's also wise to check your credit reports regularly for suspicious activity. Unfamiliar accounts or elevated balances are red flags for identity theft.\n### Explore Identity Protection Programs\nTaking more in-depth precautions may help you sleep better at night, especially if you've been the victim of familiar fraud in the past. Experian IdentityWorks℠ provides identity theft monitoring and dark web surveillance, which can offer some peace of mind. You can also lock and unlock your credit file with ease, adding an additional layer of protection. If you are ultimately victimized, you'll have access to fraud resolution services and up to $1 million in ID theft insurance.\n### Keep Sensitive Documents in a Safe Place\nVelasquez suggests taking extra steps to keep your personal information safe from potential scammers. A lockbox or fire safe can do the trick. It's also wise to be mindful of oversharing information with those close to you, as people can't steal information they don't have.\n\"Don't leave your purse or wallet out when visitors come because they could also be easily accessed,\" she says. \"While it may seem overboard, familiar fraud is typically committed by people you trust and would not expect to steal your PII.\" END
 TITLE: What Is Familiar Fraud and How It Can Affect Your Family? CONTENT: How to Detect Familiar Fraud\n----------------------------\nFamiliar fraud often goes undetected for years. It's usually discovered when someone goes to take out a loan or apply for new credit, only to find fraudulent activity on their credit reports. With regard to minors, children under 16 likely won't have a credit report at all. There are some cases where a credit report may have been created for them, however, such as if they've been added as an authorized user on an adult's credit account. If they have a credit report and you can't think of a clear explanation why, it may be due to fraud.\nThe best way to detect familiar fraud is to check your credit reports regularly and monitor your accounts. \"If you spot unusual activity on your existing accounts or on your credit file, you need to act quickly and take the appropriate steps to resolve the fraud and recover your identity,\" Velasquez says. END
 TITLE: What Is Familiar Fraud and How It Can Affect Your Family? CONTENT: What to Do if You Experience Familiar Fraud\n-------------------------------------------\nReacting sooner rather than later can help prevent further damage. Here are some helpful tips for overcoming identity theft:\n*   **Protect your credit.** If you haven't already done so, now is the time to establish a security freeze or fraud alert. This action can help put a stop to the fraud and prevent more abuse.\n*   **Report the fraud.** While this may feel difficult if the perpetrator is a family member or friend, it's still wise to report the fraud to the appropriate law enforcement agency as it's a criminal act. Beyond that, you can also report it to the Federal Trade Commission at IdentityTheft.gov. Here you'll also find recovery resources and step-by-step guidance for setting things right.\n*   **Dispute fraudulent charges.** \"Be sure to contact the companies where the fraud happened and the three credit bureaus,\" Velasquez says. The latter is especially important as each has its own process for disputing information on your credit reports that you believe to be inaccurate or fraudulent. END
 TITLE: What Is Familiar Fraud and How It Can Affect Your Family? CONTENT: The Bottom Line\n---------------\nFamiliar fraud is often a quiet form of identity theft that you don't see coming. You can check your credit reports for free at AnnualCreditReport.com. Experian also has lots of resources to help you protect your credit, including free credit monitoring that will alert you to new credit inquiries and changes on your credit report. END
 TITLE: How to Set Up Credit Card Alerts for Fraud and Purchases CONTENT: Types of Credit Card Alerts\n---------------------------\nThere are several different types of alerts you can set on your credit cards. While these may vary slightly from one issuer to another, most credit card companies allow you to set the following alerts:\n*   **Purchase alert**: Get alerted every time a purchase is made, or only for purchases over a certain dollar amount. You may also be able to get more details; for example, Capital One lets you enable notifications including the amount of the purchase and information about the merchant.\n*   **Bill due date reminders**: Avoid missing a payment by signing up for reminders that let you know when your next payment is due.\n*   **Payments posted**: Keep tabs on your payments to make sure they post on time.\n*   **Balance updates**: Monitor your spending by receiving balance updates.\n*   **Foreign purchases**: A purchase in another country when you're in the U.S. is a warning sign of fraud.\n*   **Cash advances**: Crooks may take cash advances on your account.\n*   **Balance transfers**: Identity thieves might try to transfer their high-interest balances to your card, leaving you responsible for payment. END
 TITLE: How to Set Up Credit Card Alerts for Fraud and Purchases CONTENT: You can receive credit card alerts via text, email and\/or push notification. Using the credit card issuer's mobile app to set up alerts and enabling push notification ensures you're alerted quickly. Here's how to set up credit card alerts for the major card issuers.\n**American Express**\n1.  Tap Account\n2.  Under Settings, tap Notifications\n3.  Select the alerts you want to receive\n**Bank of America**\n1.  Tap Menu\n2.  Tap Alerts, then Settings\n3.  Select the alerts you want to receive\n**Capital One**\n1.  Tap your profile icon\n2.  Tap Alerts Notifications\n3.  Select your account, then the alerts you want to receive\n**Citi**\n1.  Tap your profile icon\n2.  Under Settings, tap Account Alerts\n3.  Select your account, then the alerts you want to receive\n**Chase**\n1.  Tap your profile icon\n2.  Under Alerts Messages, tap Manage Alerts\n3.  Select the alerts you want to receive\n**Discover**\n1.  Tap More\n2.  Under Profile Settings, tap Alerts\n3.  Select Allow Push Notifications, then the alerts you want to receive END
 TITLE: How to Set Up Credit Card Alerts for Fraud and Purchases CONTENT: How Can Credit Card Alerts Help You?\n------------------------------------\nCredit card alerts can warn you of fraud and allow you to take swift action. For example, if you notice a purchase you didn't make, you can quickly notify your card issuer and file a police report if necessary. Your card issuer will cancel your card and issue a new one.\nYou should check your credit report regularly to make sure all the information there is correct; this is especially critical after discovering credit card fraud. The criminal could have opened new credit cards or other credit accounts using your identity. Fraudulent credit card activity that appears in your credit report can negatively affect your credit score unless you have it removed, which you can do by contacting your card issuer or filing a dispute with the credit bureau on whose report it appears.\nTo protect against future fraud, consider placing a fraud alert, also called a security alert, on your credit report. This requires credit grantors to confirm your identity before issuing new credit in your name.\nFighting fraud isn't the only thing credit card alerts can do. Receiving alerts about your balance or purchases can help you stay on top of your spending, stick to a budget or monitor an authorized user's spending.\nYour payment history with credit cards and other credit accounts is the single biggest factor in your FICO® Score☉ , the most commonly used credit scoring model. Alerts about payment due dates remind you to pay your bill on time, which can boost your credit score. END
 TITLE: How to Set Up Credit Card Alerts for Fraud and Purchases CONTENT: Monitor Your Credit and Stay Alert\n----------------------------------\nHaving a good credit score can help you get approved for credit cards and loans, and can qualify you for lower interest rates and favorable terms. It can even make it easier to get an apartment or a job. To protect your credit, consider signing up for free credit monitoring from Experian, which tracks your credit score, helps you stay on top of spending and sends real-time alerts of key changes to your credit report. Armed with credit card alerts on your mobile credit card app and credit monitoring alerts from Experian, you'll be better prepared to fight fraud. END
 TITLE: What’s the Difference Between Cash Back, Points and Miles? CONTENT: Three Types of Credit Card Rewards\n----------------------------------\nCash Back\nPoints\nMiles\nCash back cards generally have a low annual fee or none at all\nCards have annual fees ranging from $0 to $500 or more\nCards have annual fees ranging from $0 to $500 or more\nRedemption options could include statement credits, direct deposits, paper checks, gift cards and more\nRedemption options could include travel, statement credits, direct deposits, paper checks, gift cards, merchandise and more\nRedemption options could include travel, statement credits, direct deposits, paper checks, gift cards, merchandise and more\nRedemption value is straightforward—$1 in rewards usually equals $1 in cash back\nRedemption value can vary depending on the rewards program, credit card and how you redeem your points\nRedemption value can vary depending on the rewards program, credit card and how you redeem your points\n### Cash Back\nCash back is by far the simplest and most flexible way to earn and redeem credit card rewards. When you have a cash back credit card that offers 2% back on all purchases, you'll earn $2 in rewards for every $100 you spend. If the card allows you to redeem your rewards for a direct deposit or paper check, you can use your cash however you want.\nHowever, some cards only allow statement credits, which helps you pay down your credit card balance, but it limits your flexibility.\nCash back credit cards typically don't charge an annual fee, though there are some exceptions with cards targeted to people with poor or fair credit and with cards that offer outsized rewards value. Cash back cards may offer welcome bonuses worth hundreds of dollars and introductory 0% APR promotions that apply to purchases, balance transfers or both.\n### Points\nPoints-based credit cards can earn points that are redeemable for a variety of things, such as hotel stays, flights, general travel rewards, cash back rewards, gift cards or even charitable contributions. Redemption options and values can vary, depending on the program and the card you're using.\nSome points-based credit cards don't have an annual fee, but many of them do. If you have a card with an annual fee, you'll typically have access to a bigger welcome bonus—some are worth $500 to $1,000 or even more—and more benefits.\nWhile some points cards offer an introductory 0% APR on purchases or balance transfers, it's not as common as it is with cash back credit cards.\n### Miles\nHistorically, the term \"miles\" only referred to rewards you could earn with frequent-flier programs. Now, there are a handful of airline rewards programs that use the term \"points\" instead, and there are also some general travel rewards programs that use miles.\nIn other words, there isn't a lot of difference between points and miles. They're simply terms for different types of rewards program currencies.\nLike points credit cards, miles credit cards can come with or without an annual fee, but cards with annual fees often offer bigger bonuses, better rewards and more valuable perks. Miles cards—especially airline credit cards—typically don't offer introductory 0% APR promotions.\nRules on How You Can Redeem Rewards\n-----------------------------------\nDepending on which card you have and how its rewards program works, there may be certain rules you have to follow to use your cash back, points or miles. Here are some rules you may come across:\n*   Some card issuers require you to have a minimum balance—such as $25 or 2,500 points or miles—in your rewards account before you redeem.\n*   Some rewards, particularly with airline and hotel loyalty programs, may expire if you cancel the account or don't maintain activity in your account for a certain period. In some cases, rewards expire after a certain time regardless of your activity.\n*   You may not be able to redeem your rewards unless your account is in good standing, meaning you're not behind on payments.\n*   Some cash back credit cards may require you to have an account with the issuing bank in order to request a direct deposit redemption.\n*   Some travel credit cards offer lower redemption rates on non-travel redemptions.\nBefore you apply for a credit card, be sure to read the fine print to determine which rules apply and whether they fit with your goals.\nWhat's the Best Way to Redeem Credit Card Rewards?\n--------------------------------------------------\nThe best way to redeem your credit card rewards depends not only on the card you have, but also on your financial situation and goals.\nWith a cash back credit card like the Capital One Quicksilver Cash Rewards Credit Card, it's relatively easy to maximize your rewards because you're getting cash back rewards that don't change in value when redeemed for cash back.\nWith points and miles cards, however, things can get a bit trickier. For example, if you have the Chase Sapphire Preferred® Card, you can get 1 cent per point if you redeem your rewards for cash, but you'll get 1.25 cents per point if you redeem for travel through Chase's Ultimate Rewards platform. If you transfer your rewards to one of Chase's airline or hotel partners, you could potentially get even more value that way.\nIf you want to maximize the value of your points, taking the time to research redemptions with Chase's partners and transferring your points could net you far more value than what you'd get if you redeem directly with Chase. The same goes for other points and miles credit cards. Take a look at how much your rewards are worth, and try to pick the redemptions that give you the most bang for your buck. Keep in mind, however, that there may be times where it's better to pick a lower-value redemption option if it meets your current needs or goals, such as cash back if you're short on funds.\nCheck Your Credit Before Applying for a Rewards Card\n----------------------------------------------------\nMost of the top cash back, points and miles credit cards are targeted to people who have good or excellent credit. That generally means having a credit score in the upper 600s or higher.\nBefore you apply for a new credit card—or any type of credit for that matter—check your credit score to get an idea of where you stand. If it needs some work, take time to improve your credit before you submit an application. Alternatively, you can apply for a card that's a better fit for your credit range.\nWith Experian CreditMatch™, you can get personalized credit card offers based on your credit profile. END
 TITLE: What’s the Difference Between Cash Back, Points and Miles? CONTENT: ### Cash Back\nCash back is by far the simplest and most flexible way to earn and redeem credit card rewards. When you have a cash back credit card that offers 2% back on all purchases, you'll earn $2 in rewards for every $100 you spend. If the card allows you to redeem your rewards for a direct deposit or paper check, you can use your cash however you want.\nHowever, some cards only allow statement credits, which helps you pay down your credit card balance, but it limits your flexibility.\nCash back credit cards typically don't charge an annual fee, though there are some exceptions with cards targeted to people with poor or fair credit and with cards that offer outsized rewards value. Cash back cards may offer welcome bonuses worth hundreds of dollars and introductory 0% APR promotions that apply to purchases, balance transfers or both. END
 TITLE: What’s the Difference Between Cash Back, Points and Miles? CONTENT: ### Points\nPoints-based credit cards can earn points that are redeemable for a variety of things, such as hotel stays, flights, general travel rewards, cash back rewards, gift cards or even charitable contributions. Redemption options and values can vary, depending on the program and the card you're using.\nSome points-based credit cards don't have an annual fee, but many of them do. If you have a card with an annual fee, you'll typically have access to a bigger welcome bonus—some are worth $500 to $1,000 or even more—and more benefits.\nWhile some points cards offer an introductory 0% APR on purchases or balance transfers, it's not as common as it is with cash back credit cards. END
 TITLE: What’s the Difference Between Cash Back, Points and Miles? CONTENT: ### Miles\nHistorically, the term \"miles\" only referred to rewards you could earn with frequent-flier programs. Now, there are a handful of airline rewards programs that use the term \"points\" instead, and there are also some general travel rewards programs that use miles.\nIn other words, there isn't a lot of difference between points and miles. They're simply terms for different types of rewards program currencies.\nLike points credit cards, miles credit cards can come with or without an annual fee, but cards with annual fees often offer bigger bonuses, better rewards and more valuable perks. Miles cards—especially airline credit cards—typically don't offer introductory 0% APR promotions. END
 TITLE: What’s the Difference Between Cash Back, Points and Miles? CONTENT: Rules on How You Can Redeem Rewards\n-----------------------------------\nDepending on which card you have and how its rewards program works, there may be certain rules you have to follow to use your cash back, points or miles. Here are some rules you may come across:\n*   Some card issuers require you to have a minimum balance—such as $25 or 2,500 points or miles—in your rewards account before you redeem.\n*   Some rewards, particularly with airline and hotel loyalty programs, may expire if you cancel the account or don't maintain activity in your account for a certain period. In some cases, rewards expire after a certain time regardless of your activity.\n*   You may not be able to redeem your rewards unless your account is in good standing, meaning you're not behind on payments.\n*   Some cash back credit cards may require you to have an account with the issuing bank in order to request a direct deposit redemption.\n*   Some travel credit cards offer lower redemption rates on non-travel redemptions.\nBefore you apply for a credit card, be sure to read the fine print to determine which rules apply and whether they fit with your goals. END
 TITLE: What’s the Difference Between Cash Back, Points and Miles? CONTENT: What's the Best Way to Redeem Credit Card Rewards?\n--------------------------------------------------\nThe best way to redeem your credit card rewards depends not only on the card you have, but also on your financial situation and goals.\nWith a cash back credit card like the Capital One Quicksilver Cash Rewards Credit Card, it's relatively easy to maximize your rewards because you're getting cash back rewards that don't change in value when redeemed for cash back.\nWith points and miles cards, however, things can get a bit trickier. For example, if you have the Chase Sapphire Preferred® Card, you can get 1 cent per point if you redeem your rewards for cash, but you'll get 1.25 cents per point if you redeem for travel through Chase's Ultimate Rewards platform. If you transfer your rewards to one of Chase's airline or hotel partners, you could potentially get even more value that way.\nIf you want to maximize the value of your points, taking the time to research redemptions with Chase's partners and transferring your points could net you far more value than what you'd get if you redeem directly with Chase. The same goes for other points and miles credit cards. Take a look at how much your rewards are worth, and try to pick the redemptions that give you the most bang for your buck. Keep in mind, however, that there may be times where it's better to pick a lower-value redemption option if it meets your current needs or goals, such as cash back if you're short on funds. END
 TITLE: What’s the Difference Between Cash Back, Points and Miles? CONTENT: Check Your Credit Before Applying for a Rewards Card\n----------------------------------------------------\nMost of the top cash back, points and miles credit cards are targeted to people who have good or excellent credit. That generally means having a credit score in the upper 600s or higher.\nBefore you apply for a new credit card—or any type of credit for that matter—check your credit score to get an idea of where you stand. If it needs some work, take time to improve your credit before you submit an application. Alternatively, you can apply for a card that's a better fit for your credit range.\nWith Experian CreditMatch™, you can get personalized credit card offers based on your credit profile. END
 TITLE: Is an FHA Loan Worth It if You Have Good Credit? CONTENT: Advantages of FHA Loans\n-----------------------\nFHA loans are not limited to first-time homebuyers, but they are meant to help borrowers with limited or spotty credit histories. By design, their eligibility requirements are less stringent than what you'd find with many conventional mortgages that are not backed by government agencies.\n*   **Down payment:** The 3.5% minimum down payment requirement on FHA loans is lower than what many (but not all) conventional loans require. If you have a credit score of about 650 or higher, the low down payment requirement is likely the main reason you'd be considering an FHA loan. As you'll see below, however, there are other low-down-payment options worthy of consideration if this is the case for you.\n*   **Credit score:** The credit score requirement of 580 on FHA loans is lower than what most lenders require for conventional loans. (The vast majority of conventional loans conform to standards set by Fannie Mae and Freddie Mac, which require minimum FICO® Scores☉ of 620.) It's even possible to qualify for an FHA loan with a FICO® Score as low as 500, but you must put down 10% of the purchase price to do so.\n*   **Debt-to-income ratio:** All mortgage lenders look at your debt to income ratio (DTI), the percentage of your monthly pretax income that goes toward debt payments. Lenders view borrowers with high DTIs as posing more financial risk, and they tend to prefer DTIs of 36% or less for conventional mortgages. You can qualify for an FHA loan with a DTI ratio as high as 43%. END
 TITLE: Is an FHA Loan Worth It if You Have Good Credit? CONTENT: Financial Trade-Offs of FHA Loans\n---------------------------------\nThe lower barriers to entry on FHA loans come with financial trade-offs, and those additional costs are the main reason to consider a conventional loan if you qualify for one:\n*   **Mortgage insurance:** You'll be charged an upfront mortgage insurance premium (MIP) of 1.75% of the loan amount on every loan. (This amount can be financed and added to the monthly loan payment, with applicable interest charges.) Depending on your credit scores, an additional MIP of 0.45% to 1.05% of the loan amount is also charged annually and added to your monthly payment. If you make a down payment less than 10% on an FHA loan, these MIP charges remain for the life of the loan; if you put 10% or more down, MIP charges are removed after 11 years.\n*   **Interest rates:** Depending on your credit score, lenders that issue FHA loans typically charge interest rates that are anywhere from 0.5% to 1.5% higher than those available on conventional loans.\nThese costs, particularly on loans where MIPs are required for the entire life of the loan (or until you refinance), can add up to tens of thousands of dollars over the life of a 30-year mortgage. If your good credit qualifies you for a conventional loan with better borrowing terms, it's wise to consider one. END
 TITLE: Is an FHA Loan Worth It if You Have Good Credit? CONTENT: What's the Difference Between an FHA Loan and a Conventional Loan?\n------------------------------------------------------------------\nWhen deciding whether an FHA loan or a conventional loan will work best with your credit score and financial situation, consider the following factors. END
 TITLE: Is an FHA Loan Worth It if You Have Good Credit? CONTENT: Other Loan Options to Consider\n------------------------------\nIf you have high credit scores but are having a hard time raising a down payment of 20% (or even 10%) of the purchase price, FHA loans are not your only option. Consider some of these alternatives:\n*   **Freddie Mac Home Possible loan****:** Freddie Mac, as the Federal Home Loan Mortgage Corporation is popularly known, devised the Home Possible loan to lower the barriers to homeownership. Down payments start at 3% and can come from family, employer assistance, a secondary loan or \"sweat equity.\" The minimum credit score requirement is 660 (680 if you're refinancing an existing loan), but if you or a co-applicant lack a credit score, you still could qualify through an alternative underwriting process.\n*   **Fannie Mae 97 LTV loan:** The Federal National Mortgage Association, better known as Fannie Mae, authorizes two categories of mortgage loans that require minimum down payments of 3% (or LTV ratios of 97%):\n    *   The Fannie Mae Home Ready 97 LTV loan is designed for low-income borrowers—specifically those with incomes below 80% of their local area median income as designated by the U.S. Census Bureau.\n    *   The Fannie Mae Standard 97 LTV loan is open to any borrower, provided at least one applicant is a first-time homebuyer and all applicants have credit scores. (An automated underwriting process that uses credit scores is required for loan approval.)If all applicants for Fannie Mae LTV loans are first-time homebuyers, at least one must complete a homeowner education program.\n*   **VA loan****:** Backed by the U.S. Department of Veterans Affairs, VA loans are designed for qualifying veterans, servicemembers, their spouses and other beneficiaries. They are available with no down payment and do not require mortgage insurance. A funding fee of 2.3% of the loan amount is required if you put less than 5% down—down payments can be as low as 0%. If you make a down payment of 10% or greater, the fee drops to 1.4% of the loan amount.\n*   **USDA loan****:** Guaranteed by the U.S. Department of Agriculture, USDA loans can help low- to moderate-income homebuyers who want to purchase a home in eligible rural areas. They don't require down payments, and offer flexible credit score requirements. (A minimum FICO® Score of 640 is required for rapid approval using the USDA's automated application process, but you can be approved with a lower credit score via the process of manual underwriting.)\nGet Your Credit Ready for a Mortgage Application\n------------------------------------------------\nTo optimize your credit profile for mortgage approval, check your free credit report and get your credit score for free through Experian to know where you stand. Make sure to pay your bills on time, avoid taking on major new debt, and pay down your credit card debt as much as possible before applying for a mortgage. END
 TITLE: Is an FHA Loan Worth It if You Have Good Credit? CONTENT: Get Your Credit Ready for a Mortgage Application\n------------------------------------------------\nTo optimize your credit profile for mortgage approval, check your free credit report and get your credit score for free through Experian to know where you stand. Make sure to pay your bills on time, avoid taking on major new debt, and pay down your credit card debt as much as possible before applying for a mortgage. END
 TITLE: What Is a USDA Loan? CONTENT: How Does a USDA Loan Work?\n--------------------------\nThe USDA's Rural Development Guaranteed Housing Loan Program offers loans to help low- to moderate-income consumers buy homes. To qualify, applicants must be looking to finance a home in an eligible rural or suburban area. The home must be intended for use as their primary residence and the homebuyer's income must fall below specific limits, which depend on local median income levels.\nDensely populated urban areas of the country are excluded from the program, but that leaves 97% of the geographical U.S. as eligible for USDA home financing. The USDA's Single Family Housing Direct Self- Assessment tool can help you determine your eligibility in the area where you wish to finance a home. END
 TITLE: What Is a USDA Loan? CONTENT: Types of USDA Loans\n-------------------\nThere are three types of USDA loans:\n### Section 502 Direct Loans\nThis type of USDA mortgage loan is available to low- and very-low-income borrowers. Loan proceeds may be used to purchase, renovate or relocate a home, or to make site improvements including installation of water and sewage services.\nThe current interest rate for direct home loans is 2.5%, but rates can drop as low as 1% when modified by payment assistance—a subsidy that temporarily reduces mortgage payments. Loan repayment periods are typically no longer than 33 years, but 38-year loans are available to recipients who cannot afford monthly payments on a 33-year loan.\nThe home you wish to finance using Section 502 direct loans must meet certain requirements, including cost. Because home values vary widely by geography, each county has its own price limit for purchases made using Section 502 loans.\n### Single Family Housing Repair Loans & Grants\nAlso known as the Section 504 Home Repair Program, this USDA initiative lends funds to homeowners who wish to repair or upgrade their homes. The program is available to applicants with incomes that fall below 50% of the local median income who cannot get affordable credit elsewhere, to fund improvements on homes they occupy (no rental properties or vacation homes).\nSingle Family Housing Repair Loans offer financing of up to $20,000 at a fixed interest rate of 1%, to be repaid over a period of up to 20 years.\nSingle Family Housing Repair Grants allow applicants aged 62 or older who cannot afford home improvement loans to receive as much as $7,500 for projects that make their homes safer. Individuals can apply for multiple grants over time, but the total lifetime grant amount cannot exceed $7,500. The grant must be repaid if the property is sold within three years of the grant being issued.\nHomeowners who can afford to make partial, but not full, repayment on Section 504 loans are eligible to apply for a combination of grants and loans to fund qualified home improvement projects, for total funding of up to $27,500.\nThe USDA Single Family Housing Section 504 Repair Pilot Program is offering qualified applicants even higher loan and grant amounts in rural areas of California, Hawaii, Illinois, Indiana, Iowa, Kentucky, Maine, Michigan, Mississippi, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Puerto Rico, South Carolina, Texas, Tennessee, Virginia, Washington and West Virginia.\nTo learn more about USDA Single Family Housing Repair Loans and Grants and to apply for them, contact your regional [Rural Development office](;agency=rd).\n### USDA Guaranteed Loans\nA contrast to the direct loans issued by the USDA itself, USDA Guaranteed Loans are issued through USDA-approved lenders, including banks and credit unions. The Guaranteed Loan program promises lenders it will cover 90% of any loan issued under its guidelines if the borrower fails to repay the loan. That enables lenders to offer low-interest loans to borrowers who don't have a down payment and have a less-than-ideal credit score. With this type of loan, the buyer will be required to pay a type of mortgage insurance fee called a guarantee fee if they don't put any money down.\nTo get this type of loan, you'll need to work with a USDA-approved lender. While many lenders offer USDA loans, it's best to work with one that specializes in this type of mortgage. END
 TITLE: What Is a USDA Loan? CONTENT: How to Qualify for a USDA Loan\n------------------------------\nYou are eligible to apply for a USDA loan if you meet the following requirements:\n*   You are a U.S. citizen or permanent resident.\n*   The property you wish to buy or renovate is located in an eligible rural or suburban area; its market value falls below designated limits for the area; and it will serve as your primary residence.\n*   You can show stable, dependable income sufficient to make the loan payments.\n*   Your income is sufficiently below local median income for your area and meets specific requirements dependent on the loan type and local median income.\n*   For USDA direct loans, the property you're intending to buy must be under 2,000 square feet in area.\n*   You don't own another home. END
 TITLE: What Is a USDA Loan? CONTENT: What Credit Score Do I Need to Get a USDA Loan?\n-----------------------------------------------\nThe USDA doesn't have a fixed credit score requirement, but most lenders offering USDA-guaranteed mortgages require a score of at least 640, and 640 is the minimum credit score you'll need to qualify for automatic approval through the USDA's automated loan underwriting system. Before you submit any loan applications, take a look at your credit reports and scores to see where you stand. You can get your credit report from all three credit bureaus (Experian, TransUnion and Equifax) for free through AnnualCreditReport.com. Your Experian credit report and credit score based on Experian data are also available for free.\nIf your credit score is below 640, or if you have no established credit history (and therefore cannot generate a credit score), you could still qualify for a USDA mortgage if the lender gauges your creditworthiness through a process known as manual underwriting. This typically requires an examination of your financial records, including evidence of at least 12 months of timely bill payments. Manual underwriting takes longer than automated underwriting and can still result in your loan application being declined. You also have the option of taking the opportunity to improve your credit.\nIf you have steady but limited income and are interested in buying or making improvements to a home in a rural or suburban area, a USDA loan could be a great vehicle for getting you set up in a house of your own. END
 TITLE: How to Compare Mortgage Rates CONTENT: How Do You Evaluate a Mortgage?\n-------------------------------\nBefore you start assessing mortgage loans, it's important to learn a few basic terms. The more informed you are when you begin your search for a home loan, the better equipped you'll be to make the right decision. Here are some terms you should know:\n*   **Loan term:** This is the length of time the lender agrees to give you to pay off your loan balance. Most mortgages offer terms of 10, 15, 20 or 30 years. During this period, you will make monthly payments to the lender to cover the principal and interest (and escrow payments if you have them).\n*   **Principal:** The principal is the remaining balance of the loan, not including interest.\n*   **Interest:** This is the fee a lender charges on an ongoing basis for a loan they issue. It's noted as a percentage. The annual percentage rate (APR) on the loan includes the interest rate but also factors in other fees. Interest rates are either fixed or variable. You will lock in your rate during the application process.\n*   **Escrow****:** You may pay into this account, which the lender will use to make payments for property taxes, homeowners insurance and mortgage insurance (if applicable) on your behalf. This is different from an escrow account that is utilized during the homebuying process and holds your earnest money deposit.\n*   **Points****:** Some lenders sell what are called origination points and discount points. You can buy origination points to reduce the fees you pay to the lender during the loan process, and discount points can help you lower the interest rate on your mortgage. They essentially let you prepay interest in order to reduce your monthly payment.\n*   **Closing costs****:** These are fees you have to pay when the loan is issued. Costs generally range between 2% and 5% of the home purchase price.\nIt's tempting to shop based on rates alone, but it's key to consider the quality of the lender you'll be working with. Check online reviews from past and current borrowers. You could also refer to the Better Business Bureau and Consumer Finance Protection Bureau.\nA mortgage broker is an option if you're having trouble finding a lender you want to work with. They can shop your information around to lenders in their network to find a loan product with competitive terms. Or you can ask friends and family for recommendations. END
 TITLE: How to Compare Mortgage Rates CONTENT: How to Compare Mortgage Estimates\n---------------------------------\nThe lenders you're considering can provide loan estimates to help you determine who has the best deal. Before you request loan estimates, though, set a budget for how much home you can afford so you can provide realistic figures to the lenders.\nMake sure you're comparing loans of the same amount and type, rate type and down payment amount. Doing so will help you compare your options more effectively.\nThe lenders will likely need the following information to generate loan estimates:\n*   Your name and Social Security number\n*   The address and sale price of the home you want to purchase\n*   Your desired loan amount (or the amount you want to borrow after making the down payment)\nWhen you have the loan estimates in hand, evaluate these factors:\n*   **Loan amount:** Is the loan amount within your homebuying budget?\n*   **Monthly payment:** What is the monthly principal and interest payment? How much will you pay each month for property taxes, homeowners insurance, mortgage insurance and homeowners association (HOA) dues, if applicable?\n*   **Interest rate:** Is the interest rate fixed or variable? What's the worst-case scenario for interest rates if you get an adjustable-rate mortgage (ARM)?\n*   **Rate lock period:** When are you able to lock in your rate? Mortgage rates tend to fluctuate, so the timing can make a big difference. Can you purchase points or credits to lower your interest rate?\n*   **Mortgage insurance:** Will you be required to pay mortgage insurance in the form of private mortgage insurance (PMI) or a mortgage insurance premium? If so, how much will it cost each month? If it can be removed from the loan, when can that happen?\n*   **Fees and credits:** What are the upfront loan costs? Does the lender offer credits?\n*   **Closing costs:** How much money will you need to bring to closing?\nBe mindful that the amounts listed for escrow accounts, including property taxes and home insurance, may differ. These figures are rough estimates used by the lender to gauge your monthly payment and could change once the loan is approved and cleared to close. Pay attention to factors that can vary by property location, too, such as HOA fees and utility costs. END
 TITLE: How to Compare Mortgage Rates CONTENT: Why Do Lenders Have Different Mortgage Rates?\n---------------------------------------------\nLenders consider market factors and the borrower's finances to set mortgage rates. So, it's not uncommon to receive offers for the same loan amount and term but with different interest rates when shopping around for a home loan.\nIn fact, before the lender processes your application, they evaluate the bond market, federal funds target rate and current market conditions. They also analyze rates and fees from competitors as well as operational and labor costs to set baseline rates.\nWhen reviewing your loan application, the lender evaluates the information in your credit report, your credit score, your debt-to-income ratio and the size of your down payment. Even if you meet the loan program's general guidelines, some lenders have mortgage overlays that could require you to meet more stringent criteria. END
 TITLE: How to Compare Mortgage Rates CONTENT: How Much Do Basis Points Matter?\n--------------------------------\nBasis points are equivalent to 1\/100th of a percent, or 0.01%. They may seem tiny, but they can have a major impact on your monthly payment and the amount you'll ultimately pay in interest on your mortgage.\nTo illustrate, let's take a look at a $300,000, 30-year ARM with an interest rate of 3%. Your monthly mortgage payment (principal and interest only) will be $1,264.80. At this interest rate, you'll pay $155,332.36 in interest over the loan term. If market conditions change and the rate increases 12.5 basis points to 3.125%, however, your monthly mortgage payment will climb to $1,285.13, and you'll pay $162,645.59 in interest over the life of the loan.\nIf you're considering an ARM, use Experian's mortgage calculator to determine how fluctuations in market conditions could affect your monthly payment. END
 TITLE: How to Compare Mortgage Rates CONTENT: When Should I Start Shopping for a Mortgage?\n--------------------------------------------\nYou should start shopping for a mortgage when your credit is in good shape and you have enough money saved for a down payment. If your credit isn't up to par, you can start making improvements now and working on your overall financial health.\nTo get a better idea of the loan terms you're likely to be offered, consider getting preapproved. Be mindful, though, that mortgage preapprovals generally only last for up to 90 days. If your income or creditworthiness changes, you could receive a higher interest rate or be denied a home loan when you submit your application. END
 TITLE: How to Compare Mortgage Rates CONTENT: Save Money by Comparing Mortgage Rates\n--------------------------------------\nYou can save a bundle on your home loan by comparing rates, but it's equally important to evaluate all terms of a mortgage. When shopping around with lenders, get a loan estimate and review the fine print to find the mortgage product that works best for you.\nYou can get your free credit report from Experian and read over it in detail. And with Experian CreditWorks Premium℠, you can view your mortgage-specific credit scores before you formally apply with lenders. This allows you to know where you stand, and if you need to improve your credit score before moving forward. END
 TITLE: How to Get Down Payment Assistance CONTENT: Buying a home is often the largest purchase a person will make in their lives. Unless you're one of the lucky few who can buy a home outright with no need for a mortgage loan, you'll need to have at least some money on hand for a down payment. A down payment shows lenders you are committed to the purchase by putting your own money on the line.\nLenders may require a certain amount for a down payment, which is usually a percentage of the purchase price. For example, if you were buying a home that cost $200,000 and your lender required you to put 10% down, the down payment would be $20,000. Even utilizing government-backed mortgages intended to help low-income or first-time homeowners, you may still be required to put some money down (such as 3.5% for an FHA loan). The good news is there are many programs designed to help potential homeowners cover the down payment.\nAlmost all down payment assistance programs are provided through the federal government at the state level. Sometimes local nonprofits may partner with the government to provide homebuying education or distribute money for down payment help; however, the funding still flows down from the federal government. There are other institutions that provide down payment assistance too. (More on that later.)\nDown payment assistance programs fall into four general categories:\n*   **Grants**: This is money that you don't have to pay back. If you can get a grant to cover your down payment, that's the most ideal scenario.\n*   **Deferred payment loans:** This is a second mortgage you can take out to cover the down payment costs on the home you're purchasing. It's called a deferred payment loan because you don't have to pay back the money unless you move, sell or refinance your first loan. That said, these loans are never forgiven.\n*   **Low-interest loans:** A low-interest loan is also a second mortgage. The difference between this and a deferred payment loan is that you have to start making monthly payments on this loan right away, usually at the same time you make your regular monthly mortgage payments.\n*   **Forgivable loans:** A forgivable loan is another type of second mortgage. You won't have to pay this one back unless you move before your loan term ends. These loans usually come with an interest rate of 0%.\nOnce you find a down payment assistance program you think you may qualify for, you'll need to find out if your lender works with the program (or seek out other lenders that do). END
 TITLE: How to Get Down Payment Assistance CONTENT: Who Qualifies for Down Payment Assistance?\n------------------------------------------\nTo qualify for down payment assistance, you usually need to be a first-time homeowner (defined as someone who hasn't owned a home within the previous three years) and meet other requirements, like income limits. Income limits are the maximum amount of income a household can receive to be eligible for assistance. Income limits vary depending on the program you're considering, where you live and how large your family is. Certain programs may also have debt-to-income ratio (DTI) requirements. Additionally, some down payment assistance programs target specific groups of people, such as teachers, veterans and police officers.\nCredit requirements may be more relaxed for down payment assistance programs than for typical mortgage approval. That said, if you have a credit score below 620, you'll want to work on improving your score to give yourself the best shot at qualifying for down payment assistance. If you're not sure where your credit stands, you can get your free credit report and score from Experian to see where you're at and how you might improve. END
 TITLE: How to Get Down Payment Assistance CONTENT: How to Apply for Mortgage Down Payment Assistance\n-------------------------------------------------\nRequirements and processes for applying for down payment assistance vary by state, by the organizations offering assistance and by lender. If you've found a lender you want to work with, they may be able to refer you to state and local resources. Here are other good places to start:\n*   **Federal Housing Administration (FHA) down payment grants programs:** The FHA provides a list of specific grants and programs for buyers in need of down payment assistance.\n*   **HUD local homebuyer programs:** The U.S. Department of Housing and Urban Development offers an extensive list of resources that can help you find and apply for programs in your area that may offer down payment assistance and other homebuying resources. Programs may also provide a list or recommendations of approved lenders.\nOnce you've connected with an approved lender and determined you're eligible for a down payment assistance program, follow the instructions set out by the lender and program or agency to apply for assistance. END
 TITLE: How to Get Down Payment Assistance CONTENT: Pros and Cons of Down Payment Assistance\n----------------------------------------\nThe biggest pro of getting down payment assistance is the possibility of receiving free money or low-cost financing to help offset the expense of a large down payment. Interest rates on down payment assistance loans can be as low as 0%, and the debt may even be forgiven in certain instances.\nThere aren't too many downsides to getting down payment assistance, although there are some things to consider:\n*   Many programs might require you to attend an educational homebuyer class or workshop to be eligible for funding, adding extra time in the homebuying process.\n*   If you get down payment assistance in the form of a second mortgage, you may have to repay it if you move, sell your home or refinance your primary mortgage loan.\n*   Some programs have sales price limits, meaning you can only buy a home in a specific price range. Depending on where in the U.S. you live—especially if you live in a more expensive area—this could limit your choices in homes. END
 TITLE: How to Get Down Payment Assistance CONTENT: Alternative Ways to Get Help Buying a House\n-------------------------------------------\nIn addition to seeking out down payment assistance programs, first-time homebuyers have other programs and resources that can help them navigate the homebuying process:\n*   **Government-backed loans and programs:** Find out if you qualify for any other types of federal or local programs designed to help you buy a home. You may be eligible for government-backed loans, such as an FHA loan, which can help you buy a house with as little as a 3.5% down payment; a USDA loan, which requires no down payment for low-income buyers in suburban and rural areas; or a VA loan from the U.S. Department of Veterans Affairs. You may also want to check out HUD's Dollar Homes program aimed at low-income borrowers. With this program, you could be eligible to buy a foreclosed home for just $1 plus closing costs.\n*   **Work with an experienced real estate agent.** They can often point you in the right direction for lenders who are a good fit, connect you to useful resources, and generally help you navigate what can be a complex journey. You can find a real estate agent through family and friend recommendations or real estate websites such as Realtor.com. END
 TITLE: How to Get Down Payment Assistance CONTENT: The Bottom Line\n---------------\nEspecially for first-time homebuyers, it can be hard to save up enough money for a substantial down payment. Down payment assistance programs help fill that gap by covering all or part of the cost. When looking for programs to apply for, research their requirements, understand whether it's a grant or loan, and get specifics on how much assistance you can receive. No matter what, with the right knowledge and resources, buying a home can be within your reach. END
 TITLE: Experian Boost Helped Raise American Credit Scores by Over 50 Million Points CONTENT: Does Experian Boost Work?\n-------------------------\nSince its launch, 60% of people who have completed the Experian Boost process have seen their FICO® Score go up, with consumers experiencing a 12-point increase on average. For Experian Boost users who started the process with a FICO® Score of 579 or below (considered \"poor\"), the average increase was even more significant: 87% of that group grew their scores, and had an average increase of 22 points.\nAmong those who saw an increase with Experian Boost, many improved from one scoring range to the next—which could ultimately help them get approved for credit or a loan on better terms.\nOf the consumers who saw a score range improvement, 21% moved from the poor FICO® Score range to the fair FICO® Score range (580-669). Here is a look at users who moved up to a new FICO® Score range:\n*   21% improved from a poor to fair FICO® Score\n*   4% improved from a fair to good FICO® Score (670-739)\n*   3% improved from a good to very good FICO® Score (740-799)\n*   3% improved from a very good to exceptional FICO® Score (800 and above)\nLenders use FICO® Scores to assess borrowers' potential risk in paying back a loan or credit card bill on time. Improved FICO® Scores can mean a better chance of approval or more attractive interest rates and terms. In this way, Experian Boost is helping lenders get a clearer picture of creditworthiness among potential borrowers. END
 TITLE: Experian Boost Helped Raise American Credit Scores by Over 50 Million Points CONTENT: Experian Boost Has Helped Thousands of Consumers Become Scoreable\n-----------------------------------------------------------------\nExperian Boost not only helps people raise their existing FICO® Scores, but for consumers who have no score, the tool can actually help them become \"scoreable.\" A consumer who isn't scoreable doesn't have enough data in their credit history for credit scoring algorithms to assign them a score.\nOf the \"unscoreable\" users who completed the Experian Boost process, almost half—47%—of them built their credit file enough to become scoreable. Many of these consumers entered the poor or fair credit score range, but 15% of newly scoreable users ended up in the good score range or better. END
 TITLE: Experian Boost Helped Raise American Credit Scores by Over 50 Million Points CONTENT: Experian Boost Helped 85% of Thin-File Consumers Raise Their Credit Scores\n--------------------------------------------------------------------------\nIn addition to moving consumers to the scoreable status, Experian Boost also helped many users with \"thin files\" (less than five accounts in their credit file) increase their FICO® Score.\nMany of the more than 100 million consumers who have a thin credit file can see a transformational change when they add new data to their credit report, as lenders often adopt tighter criteria when evaluating someone with a thin file.\nOverall, 85% of thin-file consumers who used Experian Boost saw their FICO® Scores increase. And on average, consumers saw an increase of 19 points. Further, 15% of those users moved to a higher credit score range, and 41% shed their thin-file status. END
 TITLE: Experian Boost Helped Raise American Credit Scores by Over 50 Million Points CONTENT: State With the Largest Average Score Increase\n---------------------------------------------\nSince Experian Boost launched, the state where consumers added the most points to their FICO® Scores using the tool is West Virginia. Consumers in the state who saw a FICO® Score increase using Experian Boost improved their scores by 16.6 points on average. Nevada followed closely, along with Oklahoma, Alabama and Indiana, to make up the top five.\nSource: Experian END
 TITLE: Experian Boost Helped Raise American Credit Scores by Over 50 Million Points CONTENT: States With the Highest Percentage of Experian Boost Increases\n--------------------------------------------------------------\nNevada was home to the highest percentage of scores boosted using Experian Boost. Of the users in the state who tried Experian Boost, 68% saw their FICO® Scores increase.\nSource: Experian END
 TITLE: Experian Boost Helped Raise American Credit Scores by Over 50 Million Points CONTENT: Metro Area With the Largest Average Score Increase\n--------------------------------------------------\nRome, Georgia was the metropolitan statistical area (MSA) where consumers saw the largest average point increase among those whose scores improved with Experian Boost: 19 points. The other top five MSAs with the highest average per-consumer increases were spread across the country, including Gadsen, Alabama; San Angelo, Texas; Lima, Ohioa; and Parkersburg-Marrietta-Vienna, West Virginia-Ohio.\nSource: Experian END
 TITLE: Experian Boost Helped Raise American Credit Scores by Over 50 Million Points CONTENT: Metro Area With the Highest Percentage of Experian Boost Increases\n------------------------------------------------------------------\nThe Rome, Georgia, metro area had the highest percentage of Experian Boost users who saw a score increase after connecting to the service. Of those in the metro area who used Experian Boost, nearly 73% saw an increase in their FICO® Score.\nSource: Experian END
 TITLE: Experian Boost Helped Raise American Credit Scores by Over 50 Million Points CONTENT: Experian Boost Continues to Improve Credit Access\n-------------------------------------------------\nSince Experian Boost launched, it continues to improve, adding more and more financial institutions to the platform. Experian Boost can add phone, utility, telecom and streaming service payments made with a credit card, expanding opportunities to thicken credit files. These improvements, among others, make it easier for more people to connect their accounts and ultimately get credit for the payments they are already making.\nIf you've been working to improve your credit scores and want to get credit for the utility and telecom payments you're already making, check out Experian Boost to see if you can increase your FICO® Score. END
 TITLE: What Are the Most Affordable States to Live In? CONTENT: 10 Cheapest States to Live in America\n-------------------------------------\nThe most affordable states to live in are concentrated in the South and the Midwest, while those with the highest cost of living are located on the coasts.\n### 1\\. Mississippi\nMississippi earned the top affordability spot from the Council for Community and Economic Research. Its average housing costs are the lowest of any state, and the only states with lower transportation costs on average are Tennessee and Virginia. Its median household income, however, is the lowest on the list, at $45,792.\n### 2\\. Kansas\nNext-most affordable is Kansas, with the third-lowest average housing costs in the country (behind Mississippi and Alabama). Kansas' median household income is almost $20,000 more per year than Mississippi's, and its median home value is nearly $35,000 more.\n### 3\\. Oklahoma\nMedian rent in Oklahoma is lower than in Kansas or Mississippi; in fact, Arkansas is the only state on this list with a lower median rent. Compared with Kansas, however, Oklahoma's median home value is nearly $30,000 less.\n### 4\\. Alabama\nAlabama's median household income is slightly lower than Oklahoma's—$51,734 compared with $54,449 per year—but both its median home value and median rent are higher.\n### 5\\. Tennessee\nTennessee is one of two states on the list, along with Georgia, whose median home values are over $200,000. It's also one of three states, alongside Georgie and Indiana, with median rent above $1,000 per month.\n### 6\\. Arkansas\nArkansas has the lowest median rent and the second-lowest median home value on the list, just above Mississippi.\n### 7\\. Georgia\nGeorgia has the highest median home value and outstanding mortgage balance of the states in the top 10, but it has the median household income to match. Georgians earn $61,980 per year at the median, the most on the list.\n### 8\\. Indiana\nMedian household income in Indiana is about the same as the next-most-affordable state on the list, Missouri, but the average mortgage balance is about $20,000 less than in Missouri.\n### 9\\. Missouri\nRenters in Missouri benefit from lower median rent than many states on our list; only Iowa, Arkansas, Oklahoma and Kansas have less expensive rental costs.\n### 10\\. Iowa\nIowans have the highest average FICO® Score on our list, at 726—higher than the national average of 711 in 2020. The median household income is the third-highest in the top 10, after Kansas and Georgia. END
 TITLE: What Are the Most Affordable States to Live In? CONTENT: How Are the Cheapest States Determined?\n---------------------------------------\nThe Council for Community and Economic Research (known as C2ER) determines its Cost of Living Index by looking at six component categories in each state: housing, utilities, grocery items, transportation, health care, and miscellaneous goods and services. C2ER assesses about 60 types of goods and services in metropolitan statistical areas and counties throughout the country.\nTo create the index, C2ER considers the number 100 to be the average cost of living across the whole country. If a state has a cost of living that is less than 100, it costs less than average and is more affordable. If a state has a cost of living that is more than 100, it costs more than average and is less affordable.\nExperian's state-by-state list is based on the average cost of living for all participating metropolitan areas in each state, as calculated by the Missouri Economic Research and Information Center. END
 TITLE: What Are the Most Affordable States to Live In? CONTENT: Evaluating Affordability by State\n---------------------------------\nWhen determining which state would be most affordable for you and your family, look at your own circumstances and consider the factors that are most important to you. Are you hoping to have a short commute or afford a larger home for your growing family? Take the general data points we've listed as a starting point, then look into the particulars that will affect your financial life in that state. END
 TITLE: Growth of Personal Loan Debt Slows Amid Pandemic CONTENT: Overall Personal Loan Debt in the U.S. Grew in 2020\n---------------------------------------------------\nThough the nation's outstanding personal loan debt grew in 2020, the rate at which the balances expanded was cut in half—shrinking from 12% growth in 2019 to just 6% in 2020, according to Experian data. This slowing marks a deviation from a six-year-long trend that saw personal loans become the fastest-growing type of consumer debt in the country. As of 2020, however, student loan and mortgage balances grew at a rate faster than personal loans, increasing by 24% and 7%, respectively.\nBeginning in 2009—on the heels of the Great Recession—personal loan balances began to shrink and continued to do so until 2014. This period of decline resulted in overall personal loan debt falling from $259 billion in 2008 to $171 billion in 2013. Outstanding personal loan balances began to rebound in 2014, and personal loans became one of the fastest-growing debt categories leading up to 2020.\nIn Q3 2020, overall personal loan debt reached a new all-time high of $323 billion. This represented a 6%—$18 billion—increase from $305 billion in 2019. Despite the growing balances, personal loan debt still represents only 2% of overall debt in the U.S., ahead of only retail credit cards in terms of total balance.\nSource: Experian END
 TITLE: Growth of Personal Loan Debt Slows Amid Pandemic CONTENT: Average Consumer Snapshot: Personal Loan Balances\n-------------------------------------------------\nThough overall personal loan debt saw growth in 2020—in continuation of the six-year trend—the average amount each consumer owes only increased by only 1%, according to Experian data.\nAs of Q3 2020, consumers owed an average of $16,458 in personal loans, up $199 from $16,259 in 2019. This year's increase in individual average personal loan debt comes on the heels of several years in which average consumer balances went down. In 2018 and 2019, average personal loan balances per consumer shrank by 1% and 0.5%, respectively—a decline that occurred while overall personal loan debt increased.\nThe contrast between overall growth and declining individual balances is likely explained by the increasing number of personal loan accounts, which has been the trend since 2013, according to Experian data. With more accounts, overall debt balance can grow while the average balance remains about the same. Since 2013, the total number of personal loan accounts has grown 90%, from 22 million to 43 million in Q3 2020. END
 TITLE: Growth of Personal Loan Debt Slows Amid Pandemic CONTENT: Personal Loan Debt Increases in Some States, Falls Elsewhere\n------------------------------------------------------------\nAcross the U.S., the country was split when it came to how consumers' average personal loan debt changed in the past year. Consumers in 27 states saw their balances grow in 2020, while personal loan debt balances fell in the remaining 23 states and the District of Columbia.\nAmong the states where consumers' balances increased, nearly two-thirds—17 states—saw amounts owed grow by 4% or more. Two states saw double-digit percentage growth.\nOf the states where consumer balances decreased, a little over half—16 states—saw a decrease of less than 4% and only two saw double-digit percentage declines. Notably, in the 10 states that saw balances drop the most, consumers' average FICO® Scores☉ were consistently above the national average of 710—a potential nod to the ability higher-score holders had in paying down debt over the past year.\nSource: Experian\nNearly half of all states and the District of Columbia saw their average personal loan balance drop in 2020. The nation's capital saw the biggest drop by far, nearly doubling the decrease seen in the second-ranked state—New Jersey. Vermont, Connecticut and North Dakota followed closely behind New Jersey to round out the states with the top five biggest decreases in debt.\nConsumers in the District of Columbia decreased their average balance by 19.6% since 2019, according to Experian data. This reduction is in line with other trends within the district. In 2020, consumers there also saw their credit card debt drop by 20%—the most of any state.\nSource: Experian\nConsumers in more than half of states—27 to be exact—saw average personal loan balances increase since 2019. The greatest increase was recorded in Kentucky, where consumers saw their average personal loan balance spike by 11%. Nebraska, Nevada, Maine and Wyoming followed Kentucky as the states where consumer balances saw the greatest growth in 2020.\nSource: Experian END
 TITLE: Growth of Personal Loan Debt Slows Amid Pandemic CONTENT: Younger Generations Drove Changes in Personal Loan Debt\n-------------------------------------------------------\nSince the time personal loan debt began to increase in 2014, the composition of lenders issuing the debt has changed. In 2015, only 22% of unsecured personal loans were issued by fintech lenders (online-based technology companies), with traditional financial institutions (including brick-and-mortar banks and credit unions) accounting for the rest. That figure more than doubled by 2019, when fintech lenders accounted for 49.4% of new originations, according to an Experian report.\nThe growing popularity of fintech lenders has many implications, one of which is the inclusion of younger Americans in the borrowing pool. Among personal loans issued by traditional banks, only 28% were taken out by millennials and members of Generation Z, according to Experian. Meanwhile, 39.9% were issued by fintech lenders, a sign of the shifting digital landscape and younger generations' affinity for fintech solutions.\nIn terms of how much is being borrowed, members of Generation Z saw their personal loan balances grow the most of any age group in 2020. These consumers increased their personal loan balances by 33%, or $1,478, on average. Though millennials saw a fraction of the growth in their debt—millennials' average balance increased by just 4%—the second-youngest generation still recorded the second-highest spike in 2020.\nSource: Experian; Ages as of 2020\nThe growth in personal loans among younger generations can't all be traced to the increased popularity of fintech lenders, though. As time's gone on, many of these consumers have reached an age where taking out a personal loan is more common. Additionally, as these consumers age, their average credit scores generally increase—opening the doors to new borrowing opportunities. The confluence of these factors is likely what's driving the significant debt growth among younger Americans.\nAt the same time, the opposite pattern is appearing across the oldest generations. Baby boomers have the highest personal loan balances of any group, but they are growing this debt at the second slowest rate. The silent generation saw virtually no balance change from 2019 to 2020, as many members of the generation are retired and in the process of paring their debt down as they age by paying off mortgages, for example. END
 TITLE: Growth of Personal Loan Debt Slows Amid Pandemic CONTENT: Personal Loan Delinquencies Decreased in 2020\n---------------------------------------------\nAs the pandemic took hold and the economy began to slump, many worried that consumers would fall behind on their debt payments. During the Great Recession that began in 2007, delinquencies grew to record highs, and the impact of falling behind left a lasting stain on the economy and individuals' finances.\nIn an effort to minimize widespread delinquency and other economic repercussions caused by the pandemic, Congress and other institutions took preemptive measures by issuing relief measures—including legislation in the form of the Coronavirus Aid, Relief and Economic Security (CARES) Act—that gave borrowers options to help them avoid letting their accounts become delinquent.\nPaired with other factors, these measures have seemingly proved effective thus far—at least in part—as credit report data show that across nearly all debts and time periods, consumers have improved their delinquency rates since 2019.\nPersonal loan delinquency rates saw significant improvement in the past year, decreasing by double-digit percentages across measures of delinquency. The ratio of personal loan accounts severely delinquent—90 to 180 days past due (DPD)—shrank by 35% from 1.37% to 0.89% between 2019 and Q3 2020, according to Experian data. The portion of accounts 30 to 59 DPD reduced by 24% and accounts 60 to 89 DPD shrank by 17%.\nSource: Experian\nPersonal loans were not the only credit type to see a decrease in delinquencies. In fact, across the U.S., the ratio of all delinquent accounts shrank between 2019 and 2020, and this pattern of decline was true for all debt types, according to Experian data.\nThe reasons behind improvements for student loan and mortgage are fairly clear: The CARES Act not only suspended student loan repayment, but it issued guidance for mortgage lenders, allowing many consumers financially impacted by the pandemic to place their home loans in forbearance.\nThe explanation for the decrease in personal loan delinquency is more opaque, however. While the federal government urged lenders to work with borrowers who were struggling due to the pandemic, there was no clear mandate for personal loans and other debts. It's unclear to what extent personal loan issuers worked with consumers financially impacted by the pandemic, but there is a possibility that at least some of the improved delinquency rates can be attributable to lender accommodations such as lowered monthly payments. END
 TITLE: Growth of Personal Loan Debt Slows Amid Pandemic CONTENT: How Did COVID-19 Impact Personal Loans in 2020?\n-----------------------------------------------\nThe COVID-19 pandemic has clearly impacted the way consumers interact with personal loans, both negatively and positively. Borrowers still seem to be turning to these lump-sum payment options, but overall debt is growing at half the rate it did in past years.\nTo understand more about how COVID-19 impacted consumers' decision to take a personal loan, Experian surveyed a group of 186 Americans who had taken a personal loan in the past 12 months.\nOf this group, only 26% said they took the loan because of direct financial hardship from COVID-19. Another 24% said the pandemic had some influence on their decision to take a new loan, but was not the entire reason for their doing so.\nThe vast majority of those surveyed said they were confident in their ability to pay back their debt. A total of 86% of respondents said they can afford the monthly payment on their personal loan, according to the survey. The remaining 14% did not say they could afford their monthly payment.\nFinally, the pandemic hasn't only changed the ways borrowers think about taking out debt, but it's changed how some lenders view applicants. According to media reports, the pandemic's economic impact has caused some lenders to reign in the number of loans they issued. Any reduction in lending that occurred could have contributed to the slowing overall debt growth.\nEven if consumers had maintained—or even increased—their appetite for personal loans during the pandemic, with a reduction in borrowing opportunities, debt growth is bound to slow. END
 TITLE: Growth of Personal Loan Debt Slows Amid Pandemic CONTENT: Credit and Debt Trends in Changing Times\n----------------------------------------\nThough initial debt data shows promising changes—including the slowed debt growth and an improved delinquency rate—it's important to recognize that this data is a snapshot taken during a turbulent period. Additionally, most of these changes occurred over a period of less than a year and are subject to further change as time goes on.\nThis analysis looks at the most recent (upon date of publication) data from Q3 2020 and compares it with an annual snapshot for 2019 and other years cited. As time goes on, we will continue to monitor changes to consumer credit reports and will provide updates when notable change occurs. END
 TITLE: What Is the Difference Between a Prime Loan and a Subprime Loan? CONTENT: Prime Loans vs. Subprime Loans\n------------------------------\nWhen lenders consider your loan application, they assess factors including your credit score, credit history and debt-to-income ratio (DTI) to determine your creditworthiness and how much risk you present as a borrower. You might be considered high risk if you are new to credit, if you have a fair or poor credit score, or if your credit history shows serious negative events such as a bankruptcy in your past.\nLenders use risk-based pricing to set loan terms such as interest rates and fees. There are different credit scoring models, and each lender may have its own criteria for assessing your creditworthiness. A FICO® Score☉ of 670 to 739 is considered prime and generally qualifies you for loans at competitive rates, if your FICO® Score is 740 or above, you're considered super prime and can qualify for the lowest rates.\nExperian generally defines subprime borrowers as those with a FICO® Score of 580 to 669, or fair credit. Subprime loans include many of the same types of loans open to prime borrowers; there are subprime mortgages, auto loans and personal loans (and subprime scores can vary depending on the type of loan and lender). But because these loans are designed for subprime borrowers, there are some key differences.\n*   **Higher interest rates**: Subprime borrowers are viewed as a greater lending risk compared with prime borrowers, so lenders tend to charge higher interest rates to protect themselves.\n*   **Larger down payments**: If you're getting a subprime mortgage or car loan, you'll usually have to make a bigger down payment than you would for a prime loan of the same size.\n*   **Smaller loan amounts**: Subprime borrowers may not be able to borrow as much as prime borrowers.\n*   **Higher fees**: Lender fees such as origination and late payment fees are typically higher for subprime loans.\n*   **Longer repayment periods**: Subprime loans often take longer to pay back than prime loans. The term of a subprime car loan, for example, might be 60 months compared with 36 months for a prime loan of the same amount. Longer repayment periods reduce your monthly payments, but usually mean you will pay more in interest over the loan term.\n*   **Adjustable interest rates**: Fixed interest rates don't change over the life of a loan, but many subprime loans have adjustable interest rates. Adjustable interest rates are locked for a set period; after that, they typically adjust every year, which can lead to steep increases in both monthly payments and total interest. END
 TITLE: What Is the Difference Between a Prime Loan and a Subprime Loan? CONTENT: How Do Subprime and Prime Loans Affect Credit?\n----------------------------------------------\nBoth subprime and prime loans affect your credit in the same way. If you make your loan payments on time, both can help improve your credit score. If you miss loan payments or default on either type of loan, however, your credit score can suffer.\nAre you trying to boost your credit score into the prime range? The way you manage a subprime loan can help. Doing the following can help ensure the most positive impact on your scores:\n*   **Make sure your payments are reported.** Before you apply for a subprime loan, ask if the lender reports your account to the three consumer credit agencies: Experian, TransUnion and Equifax. This ensures your on-time payments will show up on your credit history, which can help to improve your credit.\n*   **Always make your loan payment on time.** To avoid missing a payment, set reminders, put the loan due date on your calendar or set up an automatic payment from your bank account. (Just be sure to have enough money in the account to cover the payment.) The timeliness of your payments is the single biggest factor in your FICO® Score.\n*   **If you do miss a payment despite your efforts, don't panic.** Instead, pay it as soon as you possibly can. Late payments aren't reported to credit bureaus until they are 30 days past due. Although you may be charged a late fee and face other penalties, a payment that's a couple days past due shouldn't affect your credit score. END
 TITLE: What Is the Difference Between a Prime Loan and a Subprime Loan? CONTENT: How to Get a Subprime Loan\n--------------------------\nLenders have different definitions of subprime borrowers, so checking your credit score won't give you a definitive answer on where you stand, but it will give you a good idea. If your credit score falls at the high end of the subprime range, you may get better loan terms by delaying your loan application a bit while you work to improve your credit score. (More on that later.)\nIf you're solidly in the subprime category, follow these steps to get the best subprime loan for you. END
 TITLE: What Is the Difference Between a Prime Loan and a Subprime Loan? CONTENT: How to Improve Your Credit and Become a Prime Loan Borrower\n-----------------------------------------------------------\nPrime borrowers have FICO® Scores of 670 or above and a history of paying their debts. As a result, lenders consider them lower risk, and it's generally easy for them to get competitive rates on loans. Super prime borrowers, who have FICO® Scores of 740 or higher, are even more desirable to lenders and can qualify for the lowest rates.\nOver time, getting the lower interest rates available to prime borrowers can save you hundreds or even thousands of dollars on a loan. To become a prime borrower, you'll need to improve your credit score.\nStart by getting a copy of your credit report from each of the three major credit bureaus (Experian, TransUnion and Equifax). You can get free copies of your credit reports through AnnualCreditReport.com. Review your credit reports carefully to make sure they're up to date and accurate. If you suspect fraudulent activity or believe information is incorrect, contact the credit bureau to file a dispute.\nIf you have any late accounts, bring them current. Going forward, focus on paying all your bills on time. Paying down debt and reducing your credit utilization rate can also help boost your credit score.\nEnrolling in Experian Boost™† can be a quick way to increase your FICO® Score from Experian. This free service gives you credit for paying your phone, utility, certain streaming services and other bills on time.\nAvoid opening new credit accounts or closing existing credit accounts. Even if you aren't using them, having those accounts on your credit report can add to your credit mix, lengthen your credit history and provide more available credit, lowering your credit utilization ratio. You may, however, consider closing a credit account if it charges high annual fees you have a hard time keeping up with.\nAs you work to improve your credit score, Experian's free credit monitoring service can help you track your progress over time and alert you when your FICO® Score changes. END
 TITLE: What Is the Difference Between a Prime Loan and a Subprime Loan? CONTENT: Should You Get a Subprime Loan?\n-------------------------------\nIf you need money quickly, a subprime loan might be your best option. But keep in mind that the bigger the subprime loan amount, the more the higher interest costs will add up. For example, interest on a subprime mortgage loan over 30 years could cost you tens of thousands of dollars more than interest on a prime loan for the same amount. Think long and hard about whether you really need a loan immediately or whether you should wait until you've improved your credit score—and your odds of qualifying for a prime loan. END
 TITLE: What Is the Average Credit Score in the U.S.? CONTENT: Drops in Delinquency, Utilization Likely Driving Score Growth\n-------------------------------------------------------------\nThe standout growth of the average FICO® Score in 2020 can likely be attributed to shrinking debt, decreased credit utilization and a drop in delinquencies (late payments). Since the onset of COVID-19 in January 2020, consumer debt management has trended in a positive direction.\nFICO® Scores are calculated using information from consumer credit reports. And when features of consumers' credit profiles improve, their scores typically do as well. Not all changes will have an immediate or visible impact, but improvement in key areas of credit reports will.\nFICO® Scores are based on five types of information found in your credit report:\n1.  **Payment history:** Payment history is the most important factor in your credit scores and shows whether you have paid your credit accounts on time.\n2.  **Amounts owed:** How much debt you owe is the second most important category, including how much of your available revolving credit you are using each month.\n3.  **Length of credit history:** The length of your credit history is based on how long you have had credit accounts open. A more established credit history usually helps credit scores.\n4.  **Credit mix:** Your credit mix is based on how many different types of credit accounts you have, including mortgages, credit cards, auto loans and installment loans.\n5.  **New credit:** This category looks at how many hard inquiries you have, as well as how many times you have applied for credit in the past 12 months. In addition, this category includes other credit activities in the recent past such as reducing balances, paying off installment loans, closing accounts and new accounts being added. Inquiries are only one small part of the puzzle when it comes to credit scores.\nSince 2019, consumers have seen record improvement in utilization rates, debt amounts and number of delinquencies. The most significant changes between 2019 and October 2020:\n*   Average credit card utilization decreased by 12%.\n*   The average number of consumer accounts ever delinquent dropped by 10%.\nThese changes are not only positive for consumers' credit health, but they are unprecedented in recent years. Considering the importance of payment history and credit utilization when calculating credit scores, improvement in these two areas may have been a driving force in increasing the nation's average score. END
 TITLE: What Is the Average Credit Score in the U.S.? CONTENT: Average FICO® Score Remains in \"Good\" Score Range\n-------------------------------------------------\nFICO® Scores, which range from 300 to 850, are the credit scoring model most commonly used by lenders for evaluating a borrower's creditworthiness. A FICO® Score of 711 is considered \"good\" by most lending standards. Approximately 21% of Americans had a FICO® Score that fell in the \"good\" credit score range in 2020.\nHere are the FICO® Score ranges:\n*   800-850: Exceptional\n*   740-799: Very good\n*   670-739: Good\n*   580-669: Fair\n*   300-579: Very poor END
 TITLE: What Is the Average Credit Score in the U.S.? CONTENT: Average FICO® Scores by Age Group\n---------------------------------\nAverage credit scores vary by age groups, and generally, the older someone is and the more experienced with credit they are, the higher their credit score will be. Members of the silent generation—the oldest group in our analysis, age 75 and older—consistently have the highest average FICO® Score of any generation. In October 2020, members of the silent generation have an average FICO® Score of 758; that's 47 points higher than the national average, according to Experian data.\nConversely, the youngest generation of adults—Generation Z, ages 18 to 23—have the lowest average score. This group has an average score of 674, which is 37 points below the national norm in October 2020.\nRegardless of age group, every generation saw its average FICO® Score improve since this time last year. The bulk of the improvement occurred for the middle generations—millennials and Generation Xers—who each saw their average FICO® Score grow by 10 or more points.\nSource: Experian. Table compares annually representative samples from 2019 and October 2020. END
 TITLE: What Is the Average Credit Score in the U.S.? CONTENT: Average Credit Scores by State\n------------------------------\nAcross the country, consumers in all 50 states and Washington, D.C., saw their average FICO® Score increase since 2019. Compared with last year's growth—which only saw 42 states increase their scores—2020's average score improvement can be seen in all states. Minnesota remained the state with the highest average score in 2020, at 739.\nSource: Experian. Table compares annually representative samples from 2019 and October 2020.\nHow to Increase Your Credit Score\n---------------------------------\nImproving your FICO® Score can be helpful before applying for a new line of credit such as a credit card, mortgage or personal loan. A higher score can help you secure better terms and lower interest rates available. Here are some actions that can help improve your FICO® Score:\n*   **Pay all of your bills on time.** This will help ensure your payment history is unblemished and shows lenders that you have a history of paying on time.\n*   **Pay down credit card balances.** Keeping balances on your credit cards low will help keep your credit utilization at a good level.\n*   **Apply for credit only when you really need it.**\n*   **Enroll in Experian Boost™† .** Adding your positive cellphone, utility and streaming service payment could help boost your credit scores instantly.\nKnow your financial profile to understand what lenders see when they look at your credit report so you can make sure to get the best interest rates and terms on loans and credit cards. END
 TITLE: What Is the Average Credit Score in the U.S.? CONTENT: How to Increase Your Credit Score\n---------------------------------\nImproving your FICO® Score can be helpful before applying for a new line of credit such as a credit card, mortgage or personal loan. A higher score can help you secure better terms and lower interest rates available. Here are some actions that can help improve your FICO® Score:\n*   **Pay all of your bills on time.** This will help ensure your payment history is unblemished and shows lenders that you have a history of paying on time.\n*   **Pay down credit card balances.** Keeping balances on your credit cards low will help keep your credit utilization at a good level.\n*   **Apply for credit only when you really need it.**\n*   **Enroll in Experian Boost™† .** Adding your positive cellphone, utility and streaming service payment could help boost your credit scores instantly.\nKnow your financial profile to understand what lenders see when they look at your credit report so you can make sure to get the best interest rates and terms on loans and credit cards. END
 TITLE: What Is a Cosigner? CONTENT: What Does a Cosigner Do?\n------------------------\nA cosigner can help you qualify for a credit card, mortgage or other loan when you can't do so on your own. Cosigners share equal responsibility for the debt and agree to cover any loan or credit card payments and applicable fees if the primary borrower fails to pay. The debt account will appear on the cosigner's credit report, and depending on how the primary borrower manages the account, could help or hurt the cosigner's credit score.\nAlthough the cosigner is legally obligated to make payments if the borrower can't, they have no rights to the loan proceeds. END
 TITLE: What Is a Cosigner? CONTENT: Pros and Cons of Cosigning\n--------------------------\nIf you can find a cosigner with a strong credit profile, you may be more likely to get approved for the credit card or loan you need. However, there are potential risks to consider—whether you're the cosigner or the borrower considering asking someone to cosign with you.\n### Pros\n*   **Your approval odds may increase**. If you have bad or even fair credit, applying with a cosigner could help you qualify for an unsecured credit card; you're also more likely to be approved for a loan or mortgage with more favorable terms and a lower interest rate.\n*   **You can help a friend or relative in need.** Cosigning for someone with bad credit could help them get approved and save hundreds or thousands of dollars in interest. Even better, you can play a part in helping the primary borrower learn to manage credit responsibly.\n### Cons\n*   **You risk damaging your credit.** As a cosigner, your credit could take a hit if the borrower pays late or misses payments and the lender reports the delinquency to the credit bureaus. This can cause your credit score to plummet and could result in a strained relationship with your cosigner.\n*   **You assume liability for the entire credit card balance or loan amount.** You will be on the hook for missed payments as a cosigner if the primary borrower falls behind on their debt payments. If they open the account and fail to make a single payment, you will be responsible for repaying the entire debt. If you're unable to pay, you could get sued by the creditor to recoup the funds owed.\n*   **It's challenging to** **remove yourself as a cosigner****.** If you want to take yourself off the loan or card account, it's up to the lender to decide if the primary borrower can make payments on their own. The only other way to remove yourself as a cosigner is for the primary borrower to refinance or pay off the loan. If it's a mortgage loan, you could get released once the borrower sells the property and the loan is paid in full. For other loans, read the fine print to determine the terms under which you can be released as a cosigner.\n*   **You may get turned down if you apply for other credit products in the future.** If you cosign a loan and then need to apply for credit for yourself, the lender may deny you because your current debt levels are too high. This is especially the case if your debt-to-income ratio is high and you're seeking a mortgage. END
 TITLE: What Is a Cosigner? CONTENT: How to Find a Cosigner\n----------------------\nIf you need a cosigner, start by asking family and friends who are financially stable, have a steady source of income and have good or excellent credit for help. Explain to the person you're asking how the debt product will benefit you, why you need a cosigner and their role in the transaction. Being honest and upfront about their responsibility for the loan is crucial to maintaining a strong relationship once the documents are signed. If you are the person being asked to cosign a loan or credit card, think very carefully about doing so and consider all the pros and cons first.\nNo luck getting a cosigner? You may need to improve your credit before applying for a loan or card. You can get your Experian credit report and credit score for free to know where you stand and what to focus on to boost your credit health. When you register, you'll also get real-time alerts of any activity on your credit reports and free insights on factors that are impacting your credit score. END
 TITLE: What to Do if There Is a Bank Error in Your Favor CONTENT: 1\\. Don't Touch the Money\n-------------------------\nWhen encountering what seems to be a huge windfall, even the saintliest among us may be tempted to pay off debt, make a major purchase or put a down payment on a house. After all, the bank is insured against such losses, right? Or maybe you plan to report the error and pay back the money. In the meantime, however, you might figure there's no harm in putting the cash in an interest-bearing account or using it to buy some stocks and earn a profit. Aside from the moral implications of using money that's not yours, the error will eventually come to light and consequences could result.\nEven if the bank doesn't notice its mistake, the money's real owner will. When the bank investigates their customer's complaint and finds the money in your account, they'll naturally question why you didn't report it. If you've spent the money or transferred it to another account, you'll have to pay the bank back and may face criminal charges. That Georgia couple, having spent almost all of the $120,000 before the bank uncovered the mistake, were convicted of theft and ordered to repay more than $100,000 to the bank. END
 TITLE: What to Do if There Is a Bank Error in Your Favor CONTENT: 2\\. Contact Your Bank\n---------------------\nIf you discover a bank error in your favor, alert your bank right away and ask them to investigate the source of the funds. It's possible someone else, such as a parent or other relative who knows your account number, put money in your account without telling you. If so, the bank will uncover it and let you know you're free to use the money as you wish.\nEven though bank errors sometimes get automatically reversed, don't rely on that happening. Telling the bank about the mistake immediately shows them you're being honest about the situation. Maintain records of your interactions with the bank about the error, including who you talked to, the date and what was said. END
 TITLE: What to Do if There Is a Bank Error in Your Favor CONTENT: 3\\. Monitor Your Account\n------------------------\nUnless you're ultra wealthy, you'd probably notice if $30,000 accidentally appeared in your checking account. However, if you only glance at your bank balance from time to time, you might not notice a deposit error of a few hundred dollars. These small errors in your favor still have the potential to negatively affect your credit score. How? Here's an example.\nSuppose an extra $500 is mistakenly deposited into your checking account and you don't notice it. If the bank discovers the error, they can withdraw the funds without your permission, freeze your account or place a hold on the funds. Any checks you've written could bounce; automatic bill payments you've set up may not get funded. If your bills don't get paid on time, you might face late fees from creditors. Your bank may also charge fees for having non-sufficient funds (NSF) or overdraft fees if your balance goes below $0.\nThis financial turmoil could easily result in late payments that can hurt your credit score. Your payment history is an important factor in credit score calculations—and even one payment that's 30 days late or more can take time to recover from. Overdrafts and NSF fees don't appear on credit reports, so they won't directly affect your credit score. However, if you don't pay your NSF fees or overdraft fees or repay your negative balance after an overdraft, your bank might send your debt to collections. This creates a collection account that appears on your credit report for up to seven years and has a derogatory effect on your credit score.\nClearly, it's important to keep tabs on your bank account and make sure you always have enough money to cover upcoming expenses. Making it a habit to review the details of your account details once a week or so will help you spot anything out of the ordinary before it seriously affects your finances.\nIf you do find a bank error in your favor, alert your bank immediately and then check your account every few days until you see that the deposit has been reversed. Your bank's deposit account agreement will specify how long it should take to correct a deposit error. Generally, banks have 10 business days to investigate a report of an error on a consumer bank account, but it may take as long as 45 days to complete an investigation. Keep checking back until you have proof that the issue is resolved. END
 TITLE: What to Do if There Is a Bank Error in Your Favor CONTENT: Keep Track of Your Financial Health\n-----------------------------------\nSetting up alerts on your bank account is an easy way to keep tabs on your finances so you can spot errors or fraud right away and act quickly. You can typically set up bank account alerts through your bank's website or app. Different banks offer different alerts, but you can usually get alerted when your balance is low, when a deposit or withdrawal is made, when your debit card is used at an ATM and more.\nIn addition to monitoring your bank accounts, keeping an eye on your credit report and credit score is key to protecting your financial health. Experian also offers free access to your credit report and credit score , as well as free credit monitoring to alert you of changes in your credit. END
 TITLE: What Is No-Exam Life Insurance? CONTENT: How Does Life Insurance Work?\n-----------------------------\nWhen you purchase a life insurance policy, you're typically purchasing protection for your family or other loved ones. Your policy names a beneficiary or beneficiaries who receive the policy's payout after you die, as long as the policy remains in effect.\nTwo basic types of life insurance are available:\n*   **Term life insurance:** A term life policy covers a certain stretch of time, such as 10, 20 or 30 years. If the policy is in effect when you pass away and your payments are up to date, the beneficiaries get the death benefit (such as $25,000) that you selected when you bought the policy. If you're still alive when the policy's term expires, the policy no longer stays in effect unless you renew the coverage on an annual basis at a higher cost.\n*   **Permanent life insurance:** As its name suggests, permanent life insurance can offer coverage for as long as you're alive. Types of permanent life insurance include whole life and universal life. These types of insurance offer a death benefit, as well as cash value, which acts similarly to a savings account. The cash value of a permanent life policy grows over time on a tax-deferred basis and may be used while you are still alive. Permanent life insurance is significantly more expensive than term life.\nBefore extending coverage to you, life insurers typically ask questions about your health, including your medical history and your family's medical history.\nThe insurer will also often require a medical exam. Among other things, the person administering the exam likely will record your height and weight, check your blood pressure, take blood and urine samples for lab tests, and conduct other screenings. You'll probably be checked for use of recreational drugs and cigarettes or other products with nicotine.\nIf a life insurance medical exam determines you're in good health, the insurer will deem you a relatively low risk and you'll likely enjoy lower premiums. But if the exam turns up serious medical issues, such as high blood pressure or hepatitis, you're considered higher-risk and may be hit with high premiums or even be rejected for coverage.\nWhat can you do if your health is not so great and you don't want to submit to a medical exam? You may be able to purchase a no-exam life insurance policy. END
 TITLE: What Is No-Exam Life Insurance? CONTENT: No-exam life insurance generally comes in two forms: simplified issue and guaranteed issue. Normally, you can expect coverage amounts of $25,000 to $1 million for a no-exam policy.\nTo qualify for a simplified issue policy, you'll answer questions about your current health, your medical history and your family medical history. An insurer will also want to review your medical records; however, you won't be required to get a medical exam.\nSimplified issue coverage may be a term life policy or a permanent life policy, with coverage often limited to anywhere from $25,000 to $300,000.\nGuaranteed issue life insurance also requires no medical exam. To qualify for this coverage, you'll answer some questions about your health and your medical history.\nPremiums for this coverage typically are higher than for simplified issue coverage. Furthermore, the death benefit may be under $25,000, and the amount of the benefit may be reduced if you pass away within two or three years of the policy being issued.\nAside from simplified issue and guaranteed issue policies, there's \"instant approval\" coverage. A number of online insurers provide instant approval of no-exam coverage based on answering questions online about your health, family medical history and lifestyle. They also consider your credit history (where allowed), driving history and other non-medical information.\nKeep in mind that you might not qualify for no-exam life insurance if you're older than 60 or 70, depending on the insurer. END
 TITLE: What Is No-Exam Life Insurance? CONTENT: How Much Does No-Exam Life Insurance Cost?\n------------------------------------------\nThe cost of a no-exam life insurance policy varies based on the insurance company, your age and other factors. Premiums for a policy with no medical exam typically are at least twice as much as premiums for a policy requiring a medical exam.\nA woman in her late 60s might pay $122 a month for $25,000 worth of coverage, according to insurance marketplace Breeze, while a woman in her mid-30s might pay around $12 a month for $30,000 worth of coverage. In other words, the older woman in this scenario pays more money for less coverage.\nA check of online quotes for traditional and no-exam life insurance found a difference that could add up to hundreds of dollars per year between premiums for these two types of coverage purchased by the same policyholder. A price comparison revealed premiums of approximately $29 to $45 a month for a $500,000, 20-year policy purchased by a 30-year-old man in California who's in excellent health and doesn't use tobacco. Meanwhile, a quote for the same man supplied by a provider of no-exam coverage showed a monthly premium of $44 to $69. END
 TITLE: What Is No-Exam Life Insurance? CONTENT: Should You Get a No-Exam Life Insurance Policy?\n-----------------------------------------------\nIf you can't qualify for a typical life insurance policy requiring a medical exam because of your health or you just don't want to bother with a medical exam, a no-exam policy might be a good option. It also might be a smart choice for someone who's young, in good health and wants to skip a medical exam, or for somebody who simply wants to leave enough money for beneficiaries to cover funeral costs and other final expenses.\nBut if you're in great health and willing to undergo a medical exam, a traditional life insurance policy typically makes more sense because you'll likely pay lower rates. END
 TITLE: What Is No-Exam Life Insurance? CONTENT: Why Should You Buy Life Insurance?\n----------------------------------\nRegardless of whether you obtain a traditional policy or a no-exam policy, life insurance can be a wise investment. For instance, life insurance can:\n*   **Replace your income.** A policy's death benefit can provide much-needed money to help survivors, such as a spouse or young children, ease the financial burden of your loss.\n*   **Pay final expenses.** Money from your life insurance payout can cover \"final\" costs like your funeral and burial.\n*   **Pass along wealth.** Life insurance can create a pool of money that can be inherited by your heirs.\n*   **Cover estate taxes.** Your life insurance payout can help pick up the bill for estate taxes that your beneficiaries may need to pay after they've inherited your estate. END
 TITLE: How Much Does Car Insurance Cost? CONTENT: Average Cost of Car Insurance\n-----------------------------\nThe cost of a policy that sets you back $1,202 per year breaks down to about $100 per month, though car insurers tend to offer discounts if you pay your policy premium in full instead of in monthly increments.\nThis average is based on national data, which takes into account everyone from teen drivers to experienced and accident-free drivers. Depending on where you live, how long you've been driving, how much you drive, your age and sex and several other factors, the premium you're charged may be very different. END
 TITLE: How Much Does Car Insurance Cost? CONTENT: Factors That Affect Car Insurance\n---------------------------------\nThere are several primary elements insurance companies look at to decide your premium when you apply for a car insurance quote.\n### State and Region\nCar insurance is regulated at the state level, and rates can vary by state and even by ZIP code. In other words, the exact location of your residence can have a major impact on your monthly premiums.\nFor instance, the incidence of vandalism, theft and accidents is higher in urban areas than in rural areas. So you can generally expect to pay more if you live in a city versus someone who lives in a small town.\n### Driving Record\nTickets and other violations can spike your car insurance rate because they're a sign that you may be a risky driver.\nAccidents, primarily when you're at fault, can also cause your premium rates to balloon. In some cases, you can see a rate increase after an accident even if you were not at fault for the accident but still filed a claim. That's especially the case if you've filed other claims in the past.\n### Vehicle Type and Use\nThe type of car you drive is a key consideration for insurers. For example, cars that are statistically more likely to be stolen may carry higher rates than others that are further down the list. And the more expensive the car, the more expensive the potential claims, which makes it more likely that you'll have a higher monthly premium. Insurers use the car's vehicle identification number (VIN) to assess its mileage, accident history and other factors to help determine your rate.\nHow you use the car is also important. You'll typically share how many miles you expect to drive each year and the primary usage. For example, if you have a long commute, you may be more likely to get into an accident than someone who primarily drives on the weekends for pleasure. Some insurance providers even ask you to install a GPS tracker on your car so your rates can be adjusted based on your driving habits.\n### Demographics\nInsurance carriers use a lot of data to determine risk profiles, including demographics such as age, gender and marital status. For example, single males under 25 are the most likely to get in an accident, and they can expect their insurance rates to reflect that elevated level of risk.\n### Type and Amount of Coverage\nIn most states, you must have at least a minimum level of liability insurance on your vehicle. Even where it's not required, you have to provide evidence that you're financially equipped to pay for damages if you cause an accident. If your car is financed, your lender may require you to carry a certain level of insurance above the legal minimum.\nBut beyond that requirement, the types of coverage you choose and how much will be reflected in your premiums. The main coverage types include:\n*   **Liability:** This protects you in an accident when you're at fault; it covers the cost of the damage to the other vehicle and the medical bills resulting from injury.\n*   **Collision and comprehensive:** Collision coverage provides protection if you're in an accident and not at fault. Comprehensive protection covers theft and damage that occurs in other ways, such as vandalism or natural disasters.\n*   **Uninsured\/underinsured motorist:** If you get in an accident where the other party is at fault and they either don't have insurance or their liability protection is insufficient, this coverage kicks in to help your policy bridge the gap.\n*   **Personal injury protection:** This covers medical bills for both you and others in your vehicle at the time of an accident, regardless of who's at fault. This type of insurance is not available in all states.\nSome insurers will also provide additional coverage types, such as rental car reimbursement and emergency roadside assistance.\nIn addition to the coverage amounts you choose, insurers will also consider your deductible. This is the amount you'll pay out of pocket before your coverage kicks in when you file a claim. A lower deductible means you're on the hook for less if something happens, but it will typically result in a higher monthly rate.\n### Credit History\nIn states where it's allowed, auto insurers also may use what's called a credit-based insurance score to help determine your rate. That's because credit scores can help predict the likelihood that you'll miss a premium payment or file a claim.\nKeep in mind, though, that insurers don't consider your credit history in California, Hawaii, Michigan or Massachusetts. Even in states where it is allowed, insurers typically can't use your score as the sole reason to raise your rate, deny you coverage or cancel or refuse to renew your policy.\n### Other Factors\nWhile not as prominent in the decision, there are several other factors that an insurance company may consider when determining your rate, including:\n*   Occupation\n*   Housing situation\n*   Previous insurance coverage (specifically, whether there's been had a gap in coverage)\n*   Driving experience\n*   Discount eligibility END
 TITLE: How Much Does Car Insurance Cost? CONTENT: How to Lower Your Car Insurance Rate\n------------------------------------\nNow that you understand what goes into the decision-making process for car insurance, here are some tips to help you qualify for a lower rate:\n*   **Shop around.** One of the best things you can do to score a low rate is to shop around and compare quotes from several insurers. This process could save you hundreds or even thousands of dollars, depending on where you live.\n*   **Ask about discounts.** Insurers offer discounts as an incentive to buy a policy. There are generally discounts available based on your driving habits, your demographics, the vehicle's safety technology and how you plan to use the vehicle.\n*   **Bundle your policies.** If you own more than one vehicle, own a home or are renting, getting all of your insurance policies from the same company can help you save money. Those savings could be as high as 30%.\n*   **Improve your credit score.** If your credit isn't in great shape, look for ways to improve it before you buy a policy. You can get your free credit report and credit score through Experian. Take a look for areas that need work, focusing on some of the more significant factors that go into your credit score, such as account balances.\n*   **Raise your deductible.** Increasing your deductible eliminates some of the risk for the insurance company, so you can generally expect a slightly lower rate. That said, consider raising your deductible only if you're confident you'll be able to pay it in the event of a claim without causing financial distress.\nReview Car Insurance Rates Regularly\n------------------------------------\nCar insurance rates are never set in stone, and the factors that determine yours can change over time. While you may get extra benefits for being loyal to your local grocery store, favorite airline or retailer, that's not always the case with car insurers.\nAs such, it may be a good idea to check in on your car insurance rate every year or two. Consider shopping around a bit to make sure you still have the lowest rate possible. If not, it may be worth switching to take advantage of lower costs elsewhere. You can browse auto insurance offers through Experian and potentially find a cheaper rate. END
 TITLE: How Much Does Car Insurance Cost? CONTENT: Review Car Insurance Rates Regularly\n------------------------------------\nCar insurance rates are never set in stone, and the factors that determine yours can change over time. While you may get extra benefits for being loyal to your local grocery store, favorite airline or retailer, that's not always the case with car insurers.\nAs such, it may be a good idea to check in on your car insurance rate every year or two. Consider shopping around a bit to make sure you still have the lowest rate possible. If not, it may be worth switching to take advantage of lower costs elsewhere. You can browse auto insurance offers through Experian and potentially find a cheaper rate. END
 TITLE: How to Open an IRA in 3 Easy Steps CONTENT: 1\\. Decide Between a Traditional and Roth IRA\n---------------------------------------------\nYou have two main choices: a traditional IRA and a Roth IRA. In simple terms, a traditional IRA is more of a \"buy now, pay later\" proposition. You use pretax dollars to fund it—meaning you may be able to deduct contributions from your income taxes—and defer paying taxes until you withdraw the money in retirement. By contrast, you don't get a tax deduction when you contribute to a Roth IRA; it's funded with income that's already been taxed. As long as you follow eligibility guidelines, however, you don't pay taxes on Roth IRA withdrawals. You can even pass along your Roth IRA tax-free to your heirs.\nHere's a chart comparing some of the features of traditional and Roth IRA accounts:\nWhich type of account is better for you? Ask yourself three questions:\n*   **Are you eligible to deduct your contributions?** Check the IRS Guide to IRAs for information. Your deductions may be limited if you or your spouse contribute to an employer-sponsored retirement plan such as a 401(k).\n*   **Are the tax savings worth it?** If you have a high income, the tax deduction could be significant. Your tax savings may not be as impactful if your income is lower, however.\n*   **Would you rather have a tax advantage before or after you retire?** With a Roth IRA, you forgo an immediate tax deduction in favor of getting a tax break when you're retired. Getting to keep and spend more of your retirement money will help you maximize the dollars you've saved.\nCan't decide? If you're eligible and you have enough funds, you can open both a traditional and a Roth IRA. The contribution limit for both types of accounts is $6,000 annually, with an additional $1,000 if you'll be age 50 or older by the end of the tax year. END
 TITLE: How to Open an IRA in 3 Easy Steps CONTENT: 2\\. Choose an IRA Provider\n--------------------------\nYou can open an IRA with many types of financial institutions, including banks, credit unions, investment brokerages and mutual fund providers. You can choose from these four basic options:\n*   **Savings:** Banks and credit unions typically offer IRAs that keep your money in savings or certificates of deposit. The downside is that these accounts will appreciate slowly. The upside: little to no risk. A bank or credit union may also offer investment-based IRAs, including some options listed below.\n*   **Self-managed investments:** Open an investment or mutual fund account and manage your own investments. You may save money in management fees, but beware that fluctuations in the market and constantly changing opportunities aren't easy for an amateur investor to track.\n*   **Automated** **robo-advisor** **accounts:** Although the term \"robo-advisor\" may sound weirdly futuristic, the process of engaging one is straightforward. You provide information about your risk tolerance, life stage and goals, and the robo-advisor uses complex algorithms to create and manage your investments. You don't get much human interaction or hand-holding, but you will save a few dollars on management fees while still having an active \"eye\" on your investments.\n*   **Professionally managed investments:** There's no doubt that having a live human advisor who can answer your questions, discuss goals and strategies, and actively manage your investments is a great benefit. Finding the right advisor can be a bit of a challenge, however. Be prepared to pay higher fees in exchange for personalized advice. Also, scrutinize any candidate carefully before turning over your money. Be sure you know upfront how fees are structured (flat fee vs. commissions) and how much you should expect to pay. END
 TITLE: How to Open an IRA in 3 Easy Steps CONTENT: 3\\. Open and Fund Your IRA\n--------------------------\nOnce you've chosen your account type and provider, you're ready to open your account and start funding it. Check with your provider about minimum contributions. You may be able to open an account with little to no money and fund it electronically from your bank account or paycheck. Choose one of three ways to fund your account:\n**Make regular automatic contributions.** Calculate how much you'd like to contribute annually and divide it by the number of contributions you plan to make in a year. For example, say you'd like to contribute $6,000 in 2021 and you have 12 remaining pay periods before the April 15, 2022, contribution deadline for the 2021 tax year. You can set up an automatic contribution of $500 every payday to reach your goal—and spread out the timing of your investments. If you'd like to keep going for the 2022 tax year, divide your $6,000 by 24 twice-monthly paychecks. You'll contribute $250 each pay period.\n**You can also make lump-sum contributions.** Do you have a few extra dollars in savings or checking? Have you recently had a windfall—stimulus money, a tax refund, a signing bonus? Transfer any amount—up to your yearly contribution limit—directly into your IRA account. Your provider will send you and the IRS Form 5498 showing the yearly total of your contributions, including lump sums, automatic payments and rollovers.\n**Roll over funds from another IRA or retirement account.** If you have another IRA or a 401(k) or other retirement plan with a previous employer, you can usually arrange an electronic transfer from your old account directly into your new one. Alternatively, make sure you maintain a paper trail that shows where the money came from, how much was withdrawn, and the amount deposited into your new IRA (which should equal the amount withdrawn). Documenting these moves will prevent confusion at tax time. END
 TITLE: How to Open an IRA in 3 Easy Steps CONTENT: Additional Ways to Invest for Retirement\n----------------------------------------\nIf you aren't eligible for a traditional IRA or have exceeded contribution limits for the year, consider opening or funding a regular investment account to grow your money over time. You'll pay taxes on your earnings and capital gains each year (starting immediately), and your contributions won't be tax-deductible. But you can contribute as much as you'd like to a regular investment account—and withdraw your money whenever you'd like as well. If you have the funds, this could be an excellent way to grow your retirement nest egg.\nYou can also invest for retirement by contributing to your employer's 401(k) or 403(b) plan. Check with your employer for full details. You'll be limited in terms of where and how you can invest. Still, these accounts are hard to beat if your employer matches your contributions.\nFinally, if you're self-employed, you might consider SEP-IRA or SIMPLE accounts. These are similar to traditional IRAs but have different contribution limits and rules. END
 TITLE: How to Open an IRA in 3 Easy Steps CONTENT: More Is Better\n--------------\nChoosing, opening and funding an IRA account (or two) takes a bit of research and initiative, but the benefits you receive may go well beyond the dollars you deposit. With a 5% average annual return, a $6,000 investment today could be worth $44,328 in 40 years, even if you never contribute another dime. Then again, once you've opened accounts and set up funding, it's easy to continue growing your savings, which in turn contributes to a more optimistic and realistic outlook on retirement. END
 TITLE: Do I Need Insurance to Rent a Car? CONTENT: Check if Your Credit Card Offers Rental Car Insurance\n-----------------------------------------------------\nTo find out if your credit card offers car rental insurance and what type of coverage it includes, check your credit card agreement or call the number on the back of your card. Policies vary from one card to another, so be sure you understand your policy's coverage, requirements and exclusions. For instance, some policies exclude long-term rentals or certain types of vehicles. Coverage may require that you decline the car rental company's coverage, use the card to pay all charges for the rental car, or file a claim within a certain time frame.\nAlso check to see if the credit card provides primary or secondary rental car coverage. Primary coverage is rarer and means you can file a claim with the credit card benefits administrator before filing a claim with your own car insurance or homeowners insurance. If the credit card policy covers the damage, you won't have to pay your own insurance policy's deductible or worry about your premiums rising. Secondary coverage kicks in only after any benefits from your own insurance policy have been exhausted. It may cover any deductibles you have to pay your insurance company.\nIf you don't have a credit card that includes car rental insurance, you may want to apply for one that does. The Chase Sapphire Preferred® Card and Chase Sapphire Reserve® card offer primary rental car insurance, while the Chase Freedom Unlimited® card offers secondary rental insurance. All these cards require good or better credit or better and offer plenty of other rewards and benefits.\nA personal credit card that has rental car coverage may not cover a car rented for business. For that, you'll want to use a business credit card. END
 TITLE: Do I Need Insurance to Rent a Car? CONTENT: Rental Car Insurance Options\n----------------------------\nAfter you determine what your car insurance and your credit card cover, consider whether you need any of the rental agency's insurance products. You'll generally be offered four types of rental car coverage:\n1.  **Loss damage waiver (LDW) or collision damage waiver:** This covers damage to or theft of the rental car, similar to the collision and comprehensive coverage in a car insurance policy. Most LDWs also cover loss of use while the car is being repaired; some also cover towing or any administrative fees the rental company charges. Clarify what is covered and what might void the coverage; for example, accidents due to speeding, driving while intoxicated or driving on unpaved roads are typically not covered. Cost: $9 to $19 per day.\n2.  **Liability coverage:** This provides financial protection from lawsuits related to accidents you cause while driving the rental vehicle. Car rental agencies must provide the minimum amount of liability insurance required by state law. However, these minimums tend to be low, so you may want to buy supplemental liability insurance to protect yourself. Cost: $7 to 14 per day.\n3.  **Personal accident insurance (PAI):** PAI covers medical bills for you and your passengers. If you have health insurance or have medical coverage or personal injury protection through your car insurance policy, you probably don't need PAI. Cost: $1 to $5 per day.\n4.  **Personal effects protection (PEP):** PEP covers personal items stolen from the rental car. Homeowners or renters insurance that includes off-premises coverage generally covers this, but you'll have to pay your deductible if you file a homeowners claim. If the car rental company's PEP doesn't have a deductible, paying $1 to $4 per day for this coverage may be worthwhile.\nBefore purchasing any type of coverage from the rental car company, make sure you understand its dollar limits, exclusions and requirements—and whether you may already be covered by your insurance policy or your credit card's policy. END
 TITLE: Do I Need Insurance to Rent a Car? CONTENT: Protect Yourself When Renting a Car\n-----------------------------------\nPaying for a rental car accident or theft out of pocket could cost you tens of thousands of dollars. Before you hop into the driver's seat, make sure you're adequately insured by your own car insurance, the rental company's coverage or your credit card's policy.\nGood credit can make it easier to qualify for credit cards that include rental car coverage. Before applying for such a card, review your credit report for accuracy and check your credit score. Taking a few simple steps, such as paying down debt and bringing late accounts current, can help improve your credit score so you can get the credit card you want. END
 TITLE: How to Refinance Your Car Loan CONTENT: Benefits of Refinancing a Car Loan\n----------------------------------\nThere are a few reasons to consider refinancing your car loan with a different lender. Here are some benefits to keep in mind:\n*   **Lower interest rate:** If your credit has improved since you first bought your vehicle or market interest rates have decreased, you may be able to get a lower interest rate than what you have right now.\n*   **Lower monthly payment:** If you keep the same repayment term, a lower interest rate will typically translate into lower monthly payments. If you want to lower your monthly payment even more, though, you may be able to get a new loan with a longer repayment term. This may mean higher interest charges over the life of the loan, but it can be worth it if your monthly budget is tight.\n*   **Choose to pay off debt sooner:** On the flip side, you could also choose a shorter repayment term. Shorter terms typically correspond with lower interest rates, which means you'll save more money and eliminate the debt sooner—although your monthly payments will be more expensive.\n*   **Get cash from your equity:** Some auto lenders offer cash-out refinance loans that allow you to refinance the original loan and get some cash to pay for other expenses. This option is typically limited to people who have a lot of equity in their vehicle.\nAs you consider these benefits, think about whether refinancing is right for you and take steps to refinance your auto loan. END
 TITLE: How to Refinance Your Car Loan CONTENT: 1\\. Consider if Refinancing Makes Sense for You\n-----------------------------------------------\nBefore you start the application process, it's important to determine if refinancing is the right move for you right now. Here are some factors to consider:\n*   **Credit requirements:** To qualify for the best terms on the new loan, your credit history typically needs to be in great shape. If you're not quite ready, consider waiting and improving your credit score first.\n*   **Prepayment penalty:** Some lenders will charge you a fee if you pay off your auto loan earlier than agreed. Check your loan terms to see if you have a prepayment penalty and how much it'll cost you compared with the potential savings you expect to get from the new loan.\n*   **Origination fee:** Some lenders may charge an upfront fee when you refinance. This fee can vary from lender to lender, but it's important to compare it with the potential savings to see if it's worth the hassle.\n*   **Length of repayment period:** If your new repayment term is longer than your current one and you don't necessarily need the lower payments, it may not be worth it simply because you may end up paying more in interest over the life of the loan. END
 TITLE: How to Refinance Your Car Loan CONTENT: 2\\. Check Your Credit\n---------------------\nIdeally, your credit score will be better now than it was when you received your first auto loan on the car. Check your credit score to see where you stand and if it might make sense to wait and continue making improvements before you apply.\nIf your credit does need some work, go over your credit reports to get ideas of where you can focus your efforts. You can get your credit report from all three bureaus for free through AnnualCreditReport.com. Your Experian credit report is also available for free directly through Experian. END
 TITLE: How to Refinance Your Car Loan CONTENT: 3\\. Gather the Necessary Documents for a Loan Application\n---------------------------------------------------------\nAfter you submit your application, you'll typically be required to provide some documents to your new lender. Having this information before you even start the loan process will help it go more smoothly.\nDocuments that you may be required to share include:\n*   Copy of your driver's license\n*   Vehicle registration\n*   Proof of insurance\n*   Proof of income\n*   Proof of residence\n*   10-day payoff statement\nYou'll also typically need to provide the vehicle identification number (VIN), so the lender can determine the car's value. END
 TITLE: How to Refinance Your Car Loan CONTENT: 4\\. Compare Offers\n------------------\nThe best way to maximize your savings is to shop around and compare offers from multiple lenders. Some lenders will allow you to get prequalified before you submit an application, while others may require a full credit check before offering any kind of interest rate information.\nThe good news is that if you do submit multiple auto loan applications in a short period—try to submit all applications within 14 days—FICO will generally combine all of them into one for purposes of calculating your credit score.\nAs you compare offers, look at the interest rate, repayment terms, fees and other features that are important to you. END
 TITLE: How to Refinance Your Car Loan CONTENT: 5\\. Apply for a New Auto Loan\n-----------------------------\nOnce you've narrowed down your list of offers to one, submit an application with that lender. Depending on the financial institution, you may be able to do it online, over the phone or even in person.\nYou'll generally need to provide the same information you shared when you applied for your existing auto loan. END
 TITLE: How to Refinance Your Car Loan CONTENT: 6\\. Review the Terms and Sign the Contract\n------------------------------------------\nOnce you've submitted your application, the lender will go through the underwriting process to determine whether you qualify and what your loan terms will be.\nCarefully read the fine print to make sure you understand what you're getting yourself into. If you agree, sign the contract, and the lender will pay off your existing loan. The contract will let you know when you'll need to start making payments on the new loan.\nBe sure to manage this transition to the new loan carefully to avoid missing payments. Pay attention to all communication from both your old lender and your new one to make sure everything is buttoned up. END
 TITLE: How to Refinance Your Car Loan CONTENT: How Refinancing a Car Loan Affects Your Credit\n----------------------------------------------\nWhen you first apply for a new loan, the hard credit inquiry made by the lender can cause your credit score to temporarily dip by a few points. But over time, your score will rebound, especially if you make all of your payments on time.\nRefinancing can also lower the average age of your accounts, which could impact your score negatively. But again, payment history is the most important factor in your FICO® Score☉ , so making your payments on time will do the most good to protect your credit score. END
 TITLE: How to Refinance Your Car Loan CONTENT: Continue to Monitor Your Credit\n-------------------------------\nAfter you've been approved to refinance your auto loan, it's still important to keep track of your credit and make adjustments as needed. That way, you'll be ready the next time you need to borrow money.\nExperian's credit monitoring tool makes it easy to stay on the right track. You'll get free access to your FICO® Score powered by Experian and your Experian credit report. You'll also get real-time alerts whenever your credit report updates with new inquiries, accounts and personal information.\nWith your pulse on your credit score, you'll be in a better position to address issues as they arise to maintain good credit. END
 TITLE: Can a Lending Circle Help You Build Credit? CONTENT: What Is a Lending Circle?\n-------------------------\nLending circles aren't a new idea. Groups of family, friends and community members around the world form rotating savings and lending circles that go by many names, including _tandas_, _cundinas_, _susu_, _hui_ and _paluwagan_.\nThe basic premise is that every member of a group contributes to a shared pot of money, and one member receives the entire sum. The circle continues until everyone receives their payout. Most lending circles charge low or no fees or interest.\nFor example, you could join a lending circle with 12 people where everyone contributes $100 each month. For the next 12 months, each person puts in $100, and one person a month receives $1,200. The order of distribution may be determined when the lending circle first forms. END
 TITLE: Can a Lending Circle Help You Build Credit? CONTENT: Will All Lending Circles Help You Build Credit?\n-----------------------------------------------\nLending circles rely on community participation and informal arrangements, or formal commitments through organizations. But even if everyone makes their payments on time, a lending circle won't help participants build credit unless the loan and payments get reported to the credit bureaus.\nSome organizations that run lending circle programs have created official loan documents and established credit reporting systems. Participation in one of these lending circles may be able to help your credit.\nFor example, Mission Asset Fund (MAF), a nonprofit organization that helps facilitate lending circles, reports its lending circle loans to all three major bureaus—Experian, TransUnion and Equifax. It also partners with organizations across the country to help form and run lending circles.\nCircles organized by MAF generally consist of six to 12 participants and last six to 12 months, respectively, with monthly payments ranging from $50 to $200. Once the lending circle begins, MAF will report the installment loan and its details, along with your payments, to the credit bureaus.\nMAF doesn't charge interest or fees to participate in a lending circle. And you may qualify regardless of your credit history or score. However, the organization may consider your debt-to-income ratio (DTI) to ensure you'll be able to afford the payments. It might recommend other options, such as working with a financial counselor, if a lending circle doesn't seem workable right now.\nThere's also a lending circle option through the Esusu Savings app. Using the app, you may be able to create an Esusu savings group and invite participants. Esusu may report the payments to the credit bureaus if the circle lasts at least six months. It charges a $10 fee per each payment cycle, which is evenly split among participants. END
 TITLE: Can a Lending Circle Help You Build Credit? CONTENT: How to Find a Lending Circle\n----------------------------\nIf you're interested in joining or starting a lending circle that can help build your credit, MAF has a directory you can search based on your ZIP code. You might work directly with MAF, or form a group through a local partner organization. In either case, you'll see MAF as the lender in your credit reports. The lending circle payments are also guaranteed, so you'll receive your full payout even if a member of your circle misses a payment.\nYou can download the Esusu Savings iOS or Android app to create an account and start a savings group. While Esusu helps facilitate the transfer of funds and credit reporting, the group leaders are responsible for setting the group's terms, inviting people to participate and encouraging participants to make their contributions on time. END
 TITLE: Can a Lending Circle Help You Build Credit? CONTENT: How Do Lending Circle Loans Affect Your Credit?\n-----------------------------------------------\nA lending circle can impact your credit in the same way as other installment loans. The benefit is that the programs often don't have credit score requirements or charge interest, and there may be low or no fees.\nAssuming the loan is reported to a credit bureau, a lending circle installment loan can help your credit by:\n*   Letting you build positive payment history if you make the payments on time\n*   Adding to your credit mix\n*   Establishing a new tradeline in your credit report\nIf you've already established credit, opening a new loan may lower the average age of your accounts, which might hurt your score. You can ask if the lending circle provider requires a credit check (many don't), as a hard inquiry could hurt your scores a little as well.\nMissing your payments could hurt your credit when the late payment gets reported. And past-due accounts could be sent to collections, which will also cause a credit score drop.\nIf you think you may have trouble affording a payment, reach out to the lending circle coordinator immediately. Some may be able to work with you to find an alternative payment plan that's affordable and won't lead to missing a payment. END
 TITLE: Can a Lending Circle Help You Build Credit? CONTENT: Alternatives to Lending Circle Loans\n------------------------------------\nMany loans and credit cards can also help you establish or build credit. When researching options, make sure the loans and cards you're considering report payments to the credit bureaus. If you're just getting started or rebuilding your credit, you could look into:\n*   **Secured credit cards****:** Secured credit cards work like regular credit cards, but the issuer requires a refundable security deposit in case the cardholder stops making their payments. You can get the deposit back after closing your account if it's in good standing. Some cards, like the Secured Mastercard® from Capital One, may refund the deposit as a statement credit and let you upgrade to an unsecured version after you've used the card responsibly.\n*   **Credit-builder loans****:** A credit-builder loan is an installment loan that lets you build savings and credit. When you take out a credit-builder loan, the loan proceeds are typically set aside in a savings account. Your loan payments get reported to the credit bureaus, and you'll receive the set-aside funds once you pay off the loan.\nIf you're looking for a loan because you want to borrow money (and not just build credit), an unsecured personal loan could be an option. Some lenders, such as Avant and LendingPoint, work with borrowers who have fair credit. Repaying the loans on time can help you improve your credit.\nIt's generally best to avoid other options that don't require a credit check, such as payday loans. In addition to being much more expensive than other options, payday loans don't get reported to the credit bureaus—meaning they won't help your credit even if you repay the loan on time. END
 TITLE: Can a Lending Circle Help You Build Credit? CONTENT: Monitor Your Credit\n-------------------\nYou can watch your progress by Experian Boost™† tool to add other regular bills to your Experian credit report, such as bills for phone, utilities and popular streaming services. END
 TITLE: How Much Money Should You Have Saved by 60? CONTENT: Just how much should you have saved by 60? The answer is completely personal—and a source of some anxiety for many non-retirees in their 60s. In a 2020 Federal Reserve Board of Governors survey released in May 2021, 87% of non-retirees in their 60s had at least some retirement savings, but only 48% felt as though those savings were on track.\nAccording to guidelines created by investment firm Fidelity, at age 60 you should have saved roughly eight times your annual salary if you plan to retire at age 67, the age at which people born after 1960 can collect full Social Security benefits. To better understand how this estimate plays out in real dollars, let's consider a hypothetical example.\nTo keep the math simple, let's say your current salary is $100,000 a year. According to Fidelity guidelines, you should have $800,000 saved up now and $1 million by 67. How do you get from $800,000 to $1 million?\n*   If you set aside 15% of your income, you'll save $105,000 in seven years (not including any interest earned) for a total of $905,000. A good start, but this doesn't get you to your goal.\n*   Invest your money with an average return of 4% and no additional contributions, and you'll have just over $1.05 million at 67.\n*   Contribute 15% and earn a conservative 1.5% annually: You'll reach $999,000+ in seven years.\nSay you're 60 today and you retire at 67. Using the figures in our example, your monthly Social Security benefits would be $2,544. (Estimate your own Social Security benefits on the Social Security site.) Plan to withdraw roughly 4% to 5% of your starting balance ($1 million) each year for additional monthly income of about $4,000. Stick to these numbers and, by Fidelity's calculation, you should stay on track financially through age 93. END
 TITLE: How Much Money Should You Have Saved by 60? CONTENT: Factors to Consider When Saving for Retirement at 60\n----------------------------------------------------\nEstimating your retirement income only tells one part of the story; several additional factors come into play. Before you celebrate—or despair—over your projected funds, think through these questions:\n*   **How much income do you need to support your lifestyle?** Consult your current budget, but also look ahead at factors that may reduce your needs when you retire. Will your mortgage be paid off? Will switching to Medicare save you money? Will you spend less on clothing, cars, dry cleaning or dining out? Will you spend more on travel?\n*   **What sources of income will you have?** In addition to retirement savings and Social Security, do you have separate savings, passive income or additional pensions you can tap?\n*   **How long can you work?** Can you continue doing your current job for as long as you want? Is it possible your job will end? Do you feel physically and emotionally capable of working for another five or 10 years?\n*   **What will you do if you run out of money?** You don't want to resort to a backup plan, but you should have one just in case.\nThese issues can be complicated. If you need an expert eye, consider working with a financial advisor to help you figure out exactly what your options might be. At age 60, you don't have decades to save and invest for your future retirement, but you do have time to gather the facts, make some plans and save, save, save. END
 TITLE: How Much Money Should You Have Saved by 60? CONTENT: How to Save More Money for Retirement\n-------------------------------------\nRegardless of where you are in your retirement savings journey, you may want to take this opportunity to save a little more. How can you save more for retirement during the home stretch of your working life?\n*   **Max out your** **401(k) contribution**, especially if your employer matches it.\n*   **Contribute to a separate IRA or Roth IRA.** Your contribution to a traditional IRA may be tax-deductible. Roth IRA contributions are not tax-deductible, but your future retirement withdrawals are tax-free.\n*   **Check up on your investments.** Can your money work harder for you? Even a small tick-up in interest, dividends or investment value adds up over the years.\n*   **Convert to a retirement lifestyle now.** An empty nest, changing work requirements, a simpler life—some elements of a less expensive retired lifestyle may be available to you now. Are you thinking of downsizing your home? If so, you might see multiple benefits:\n    *   Your home sale could generate a net profit that you can add to your retirement savings now.\n    *   You could reduce or eliminate your mortgage payment, which would increase your current monthly income and ability to contribute to retirement.\n    *   You could get a jump on enjoying a less work-intensive lifestyle by moving to a home with no yard work, for example.\n*   **Find an encore career.** Does converting to part-time work or consulting make long-term employment seem more appealing? Is there another type of work you might enjoy, even if it paid less? A new career could bridge the gap between your current job and no job at all.\n*   **Reimagine your retirement.** Your post-career life doesn't have to be expensive or income-free. Now's a great time to look for opportunities to make your post-retirement life sustainable. Rent out your house and live on a sailboat. Teach English abroad. Take up house or dog sitting. So many life pressures are about to shift: Figure out what you want now. END
 TITLE: How Much Money Should You Have Saved by 60? CONTENT: Save Enough to Support Your Best Choices\n----------------------------------------\nAs you look forward to retirement, the money you've spent a lifetime saving will fund your vision for what the coming years bring. You still have time to save more, adjust your plans and cultivate new opportunities. As you go, don't overlook the value of good credit. Retirement isn't a great time to spend wildly or take on excess debt. But having access to the flexibility of credit cards, low-interest home and auto loans, good scores for rental applications—the list goes on—will expand your choices as you age. Check your credit report and score or sign up for free credit monitoring that will help you track your credit into the future.\nAt 60, you have many choices ahead. With good stewardship and planning, they can be some of the best choices of your life. END
 TITLE: How to Improve Your Payment History CONTENT: How Payment History Affects Your Credit Score\n---------------------------------------------\nPayment history is the single biggest factor that contributes to your FICO® Score☉ , the credit score used by 90% of top lenders; it's responsible for about 35% of your score.\nThat means establishing and maintaining a spotless record of on-time debt payments is the single most important habit you can adopt to promote a strong credit score. It also means that—except for major credit missteps such as allowing unpaid bills to be turned over to collections, foreclosure or bankruptcy—nothing hurts your credit score more than a late or missed payment.\nFor the purposes of your credit reports and the credit scores based on them, a late payment is one that's 30 days overdue—and the first time one appears on your credit report, it can cause a significant drop in your credit score. Late payments typically remain on your credit report for seven years, but their effect on your credit scores wanes over time.\nWhile lenders won't report payments made a few days late to the credit bureaus, they may charge you a penalty for missing the due date, so there's ample reason for getting your bills paid on or before their due date. END
 TITLE: How to Improve Your Payment History CONTENT: Which Bills Count Toward Your Payment History?\n----------------------------------------------\nThe types of accounts considered for credit payment history are those that involve repaying borrowed funds, including:\n*   **Credit cards:** Paying your minimum monthly payment before the due date is essential to keeping your credit card account in good standing. Making payments greater than the monthly minimum can help you save on interest charges and potentially boost your credit score, and paying on time will spare you late fees and penalties.\n*   **Other revolving credit accounts:** Personal lines of credit, home equity lines of credit (HELOCs), and any other accounts that let you borrow against a set credit limit and charge interest only on the funds you use are known as revolving accounts. (Credit cards are revolving credit too.)\n*   **Installment loans:** Credit reports track payments on all installment loans—those with fixed monthly payments, such as mortgages, student loans and auto loans. When you finish making payments on an installment loan, it will be noted in your credit report as closed in good standing, but its payment history will continue to benefit your credit until the loan is removed from your credit report, usually after 10 years.\n*   **In-store financing:** If a merchant such as a furniture store or electronics retailer lets you buy an item on a payment plan, that's another form of installment credit. The merchant (or the finance company they work with) may report your payments to the national credit bureaus, so they'll show up on your credit reports and can influence your credit scores. END
 TITLE: How to Improve Your Payment History CONTENT: Non-Debt Payments (Usually) Don't Affect Payment History\n--------------------------------------------------------\nPayments for expenses unrelated to borrowing money such as rent, utility and cellphone bills, don't automatically influence your credit standing the way debt payments do, but they can affect your credit scores as well:\n*   Few landlords and property managers do so, but they can report rent payments to the national credit bureaus—and if they do, rent payments may be incorporated into your payment history. Recent versions of the FICO® Score and VantageScore® scoring models are designed to consider rent payments if they appear in your credit reports.\n*   If any bill you fail to pay is turned over to a collection agency, a collection account will appear on your credit report and will adversely affect your credit scores.\n*   Enrolling in Experian Boost™† for free can incorporate your history of utility, cellphone and streaming service payments into your Experian credit report, and a record of on-time payments can increase your FICO® Scores based on Experian data. END
 TITLE: How to Improve Your Payment History CONTENT: The following tactics can help you maintain a solid payment history, or start rehabbing one that's a little spotty:\n*   **Pay on time.** This may seem obvious, but the key to a solid payment history is paying your bills on time, every month, without fail. Late payments in your past can't be taken back, but their effect will diminish with time, so if you move ahead without new missteps, your credit scores and standing will tend to improve.\n*   **Dispute misreported payments**. If you made late payments in the past, you just have to live with the consequences—but if you believe your credit reports mistakenly list on-time payments as missed or late, you should consider contacting your lender or going through the credit report dispute process. You may have to furnish the credit bureaus (Experian, TransUnion or Equifax) with evidence of the inaccuracy.\n*   **Avoid underpayment.** Late payments are the biggest potential blemish in your payment history, but payments that fall short of the required amount could also mar your credit history. It is better to pay something every month if you can't make a full payment, but underpaying does damage too. If you have trouble making your credit card payments, avoid using those cards and focus on paying down your balances, at least until the required minimum payment is within reach. On installment loans such as mortgages, car loans and student loans, if you're having trouble making your full payment, consider reaching out to your lender—ideally before you send in an underpayment—to see if you can work out new terms that lower your monthly obligation. If the lender approves a new financing arrangement, you'll likely pay more in interest over the life of the loan, but that could be a good trade-off for preserving your payment history.\n*   **Establish a bill-paying routine.** If you have trouble remembering to pay your bills each month, scheduling a regular day for all your bill payments can be helpful. Pick a time and day that works for you—the last Sunday of the month, for bills due in the month ahead, for example—and put it on your calendar.\n*   **Let technology help.** Most financial institutions let you schedule automated electronic bill payments (autopay), which is a great tool for avoiding late payments. Other tech tools that can help you avoid late payments are digital calendar reminders, alert features found in many credit card issuers' smartphone apps, and even virtual sticky notes. Any tech you're comfortable with that stops you from forgetting a payment is a win for your finances and your credit. END
 TITLE: How to Improve Your Payment History CONTENT: Benefits of Paying Your Bills on Time\n-------------------------------------\nGetting in the habit of paying your bills on time can pay off in lots of ways:\n*   **Help improve your credit scores**. Making all your debt payments on time can go a long way toward helping you build good credit. Lenders view steadily rising credit scores as evidence that you pose less of a risk as a borrower, so as scores increase over time, you gain access to a wider array of loans and credit cards, with potentially higher loan amounts and credit limits and lower interest rates and fees.\n*   **Avoid penalties from your lender.** Loan contracts and cardholder agreements typically spell out fees or penalties you must pay if you miss a payment due date by as little as one day. On a first offense you might be able to get a lender to rescind the penalty (it can't hurt to ask), but those fees can really add up. And credit card penalties are added to your purchase balance, so they can cost you interest charges as well. It's far less costly to just make your payments on time.\n*   **Worry less.** If you don't have a system for ensuring payments are made on time, you can spend a surprising amount of energy fretting about whether you've made this or that payment already this month, scrambling to transfer funds in the eleventh hour, and otherwise sweating over the state of your bills. We all experience anxiety over things we can't control, and taking charge of a manageable task like bill paying can make your life a little calmer and less stressful.\nA healthy credit history can bring some peace of mind and will promote steady credit score improvement. Checking your credit score and report for free through Experian can help you see how improving your payment history can have a positive effect. As long as you pay your bills on time every month without fail, and attend to the other factors that contribute to credit scores, monitoring your credit scores will be a satisfying endeavor. END
 TITLE: What is a Line of Credit? CONTENT: How Does a Line of Credit Work?\n-------------------------------\nA personal credit line is a form of revolving credit that operates much like a credit card: You can write checks or make card payments in any amount up to your borrowing limit, and make payments in variable amounts as long as you meet a monthly minimum requirement. You pay interest only on the funds you borrow, and as you pay down your balance, your available credit is replenished.\nInterest rates on personal LOCs can be significantly lower than those on credit cards. And since you only incur interest if you use the credit line, setting one up can be a good strategy for dealing with unplanned expenses that exceed your emergency savings or other resources.\nPersonal lines of credit have fixed durations, which encompass two distinct phases, each typically lasting three to five years:\n*   **Draw period:** During the initial draw period, you can freely borrow and repay money against your credit line.\n*   **Repayment period:** During the subsequent repayment period, you can no longer borrow against the credit line, and must repay the outstanding balance in a series of fixed monthly payments.\nThe lengths of the draw and repayment periods are spelled out in the terms of the letter of credit loan agreement. END
 TITLE: What is a Line of Credit? CONTENT: Unsecured and Secured Lines of Credit\n-------------------------------------\nLines of credit may be secured loans or unsecured loans. With a secured loan, you put up a personal asset as collateral, which the lender can seize if you fail to repay the loan. With an unsecured loan, the lender issues credit after reviewing your finances and credit history and determining you are likely to repay the loan. Unsecured credit is riskier for lenders than secured credit, so they typically charge higher interest rates and fees for unsecured credit lines.\nMost personal lines of credit are unsecured, but there are two popular types of secured personal credit lines:\n*   A home equity line of credit (HELOC) allows you to borrow against the equity in your home—that is, the amount by which its appraised value exceeds the unpaid balance on your mortgage—and uses your home as collateral. You can typically borrow 60% to 85% of your home's equity. If, for example, you have paid off $200,000 in mortgage principal on a $500,000 mortgage, your unpaid principal equals $300,000; and if your home is appraised for $600,000, your equity would be that appraised value less the unpaid principal ($600,000 ᠆ $300,000), or $300,000. If a lender agreed to lend you 85% of your home equity, in this example, you could qualify for a HELOC of up to $255,000.\n    HELOCs typically have draw periods of five to 10 years, followed by repayment periods of 10 to 20 years.\n*   A CD-secured line of credit uses money you have on deposit in a certificate of deposit (CD) as collateral. You may be able keep a CD-secured line of credit open for more than the three- to five-year spans that are common with unsecured personal lines of credit. END
 TITLE: What is a Line of Credit? CONTENT: How Lines of Credit Compare with Personal Loans and Credit Cards\n----------------------------------------------------------------\nThe most popular forms of unsecured loans available from financial institutions are lines of credit, personal loans and credit cards. Here's a look at their similarities and differences.\nHere are the main ways these forms of credit differ from one another:\n*   **Lump sum vs. credit line:** With a loan, the amount you borrow is delivered in a lump sum and you must start making monthly payments (including interest charges) immediately and continue for the duration of the loan—typically 24 to 60 months. With a LOC or credit card, you have access to a maximum amount of cash—your credit line or borrowing limit—but you don't pay interest or make payments until you use your credit.\n*   **Payment amounts:** A loan requires you to pay an identical amount every month for the life of the loan. With a credit line or credit card, you can pay back what you owe in payments of any amount at or above a specified monthly minimum. That means you can save on interest charges if you pay off your balance with a few large payments, or spread smaller payments out over a longer time span, and pay more in interest.\n*   **Cost:** It typically costs less to use than it does a credit card. Some personal lines of credit currently have interest rates of 8.25% to 15%. That compares to an average credit card interest rate of about 16.3% these days and average annual rates on two-year personal loans of 9.58%.\n*   **Getting cash:** It's much easier (and less costly) to get cash from a personal LOC or personal loan than from a credit card. With a personal loan, you receive a lump-sum cash payment, and with a personal credit line, you typically get a checkbook and a debit card you can use for purchases or cash withdrawals. Taking out a cash advance from a credit card can be much more expensive. Card issuers typically charge higher interest rates on cash advances than they do ordinary purchases, and many also charge additional fees on each cash advance.\n*   **Length of term:** You can keep a credit card account open indefinitely if you keep the card active and make payments as agreed, but loans and personal LOCs have fixed durations. END
 TITLE: What is a Line of Credit? CONTENT: What to Do if Your Personal Line of Credit Is Closed\n----------------------------------------------------\nIn recent months, some lenders have indicated a desire to stop offering unsecured personal lines of credit. If your lender informs you it is closing your personal line of credit, you should be aware that the action could adversely affect your credit score, even if you have no outstanding balance on the LOC. That's because closure of a credit line like the closure of a credit card account, lowers your total available credit. If you have an outstanding balance on your LOC or any other revolving credit account, less available credit increases your credit utilization—the percentage of your available credit represented by your outstanding balances. Utilization greater than about 30% can cause a significant decrease in your credit score.\nIf a lender plans to close your personal LOC, you have options for replacing this source of credit, including:\n*   **Take out a new personal LOC at another financial institution.** You may be able to get a personal credit line at another financial institution. If you do so, consider keeping the new account active by using it to make a small regular monthly payment, such as a media-streaming subscription or gym membership, that you can easily pay in full each month. Doing so can prevent the new LOC from being closed due to inactivity, without running up interest charges.\n*   **Open a credit card account.** As detailed above, this won't give you the same options as a personal LOC, and the interest charges are likely to be higher, but a credit card account with a borrowing limit close to that of your closed LOC can help you cover emergency expenses. It will also increase your available credit, and may offset some of the credit score damage caused by a rise in utilization. You can find cards you may qualify for using Experian CreditMatch™, which provides offers based on your unique credit profile. END
 TITLE: What is a Line of Credit? CONTENT: How a Line of Credit Can Impact Your Credit Score\n-------------------------------------------------\nAs with a card account, your management (or mismanagement) of a personal credit line can have a major impact on your credit scores.\nIf you run up a balance on a personal line of credit and fail to make a minimum monthly payment, your credit score could suffer significantly. Payment history is responsible for about 35% of your FICO® Score☉ , making it the most important scoring factor.\nIf you use more than about 30% of the borrowing limit on a personal LOC, you can expect your credit scores to go down and to stay somewhat depressed until you repay enough of the balance to reduce your credit utilization. The amount you owe on your accounts is responsible for about 30% of your FICO® Score—and credit utilization factors heavily in that category.\nWhen you apply for a personal line of credit, the lender typically conducts a credit check, which leads to a hard inquiry on your credit report. A hard inquiry can cause a short-term drop in credit score, which typically recovers in a few months as long as you keep up with your bills.\nOpening a personal credit line can increase the variety of accounts you have on your credit report. Also known as credit mix, this factor accounts for about 10% of your FICO® Score.\nIf you want to see how a personal line of credit could affect your credit scores, consider signing up for Experian's free credit monitoring service, which will give you access to your credit report and FICO® Score and will alert you when your credit file changes. END
 TITLE: What is a Line of Credit? CONTENT: The Bottom Line\n---------------\nA personal line of credit can be a valuable source of cash for emergencies or ongoing projects such as home repairs, and it can be a more affordable form of revolving credit than a credit card. END
 TITLE: How Much Money Should You Have Saved by Age 50? CONTENT: Although there's no magic number that will guarantee you'll have saved enough money to retire worry-free, you can consider retirement savings guidelines that aim to help you figure out whether you're on track. Fidelity Investments suggests saving at least six times your annual salary by age 50 to retire comfortably at age 67, the age at which people born after 1960 are eligible to receive full Social Security benefits. This estimate assumes you are saving 15% of your income, plan to withdraw no more than 4% to 5% of your savings each year, and that you'll live a good long life to the age of 93.\nThe savings you'll need may be greater if you plan to retire earlier—or less if you continue working until maximum Social Security benefits kick in at 70. Lifestyle factors will also affect how much you need to save for retirement. Will you receive a pension from work? Do you anticipate major lifestyle changes, such as selling your home, traveling the globe or taking up expensive hobbies? END
 TITLE: How Much Money Should You Have Saved by Age 50? CONTENT: Factors to Consider When Saving for Retirement\n----------------------------------------------\nStart with a gut check. Suppose you want to retire at 67. By the time you reach this age, Fidelity suggests that you have 10 times your salary in retirement savings at the time you retire and plan to withdraw 4.5% of your total savings per year (based on the total amount you have saved when you start retirement). If your salary is $80,000, your numbers might look something like this:\nSource: Fidelity Investments\nTo get a rough picture of what your own retirement finances might look like, ask yourself these basic questions:\n**What are your expected sources of retirement income?**\n*   Estimate your Social Security benefits. How much you receive depends on your eligibility, earnings over the years and your age when you begin drawing benefits. Using our example of someone earning $80,000 per year, Social Security benefits would be $1,630 monthly at age 62, $2,454 monthly if they retired at 67 and $3,100 at age 70. You can get a personalized estimate of your projected benefits on the Social Security Administration's website.\n*   Get details on any pension program(s) you qualify for.\n*   Add in any sources of passive income (and consider developing passive income if you don't have any yet).\n*   Take inventory of your retirement accounts: 401(k)s, IRAs, Roth IRAs and regular savings you've earmarked for retirement.\n**What are your baseline monthly expenses?**\n*   Review your budget or create one.\n*   Think about which expenses are likely to continue in retirement and which ones you can eliminate.\n*   Factor in the cost of any dependent children who will require support or college tuition.\n**What is your plan for housing?**\n*   Will you have rent or a mortgage payment?\n*   Are you thinking of downsizing your home? Would you make money by doing so?\n*   Would you like to move?\n*   Are you eligible for a reverse mortgage?\n**Is health a concern?**\n*   Honestly assess whether chronic health conditions might be a factor in how long you work or whether you're likely to require prolonged medical care.\n*   Consider the ongoing cost of maintaining your physical and mental health, including everything from long-term care insurance to medical care, a gym membership or prescription medications.\nEven if your estimates are vague—or you expect to alter your plans by the time you retire—it's helpful to think through what your retirement might look like and how much it might cost. At 50, you still have time to save more, adjust the timing of your retirement or otherwise alter your plans. END
 TITLE: How Much Money Should You Have Saved by Age 50? CONTENT: How to Save More Money\n----------------------\nWhat if your projected retirement savings just won't be enough? Here are eight tips for maximizing your retirement savings, starting now:\n*   **Don't wait.** The very best time to begin saving for retirement is when you're young, but the second best time to start saving is right now. Compound interest or investment growth will make the value of every dollar you put away now significantly larger by the time you retire.\n*   **Take full advantage of employer-matched 401(k) contributions.** You'll double your contribution on day one, which is an unmatched opportunity.\n*   **Look into Roth IRAs.** Although you can't deduct Roth IRA contributions from your taxes now, your future withdrawals will be tax-free. This means your Roth IRA funds go further in retirement.\n*   **Automate your retirement savings.** Having contributions deducted from your account automatically takes away some of the temptation to spend it instead.\n*   **Eliminate as much debt as possible.** The interest you're paying now may slow down your rate of savings. And the less debt you have in retirement, the less income you'll need.\n*   **Create extra income to help fund your retirement.** Even a little money from a side job or freelance gig can help you beef up your savings without cutting into your regular income.\n*   **Look for ways to** **spend less and save more****.** Make a budget and stick to it, adjusting as needed.\n*   **Talk to a financial advisor.** Preparing for retirement can be a long, complex process. A financial advisor can help you make sense of your options. END
 TITLE: How Much Money Should You Have Saved by Age 50? CONTENT: Thinking Through Your Future Finances\n-------------------------------------\nAlthough saving six times your annual salary is a helpful milestone for age 50, your retirement needs are unique to you. To understand how much you'll really need—and what it takes to get there—take the time to run actual numbers, then consider how your expectations match up against resources.\nAs you're thinking about your future finances, don't overlook the value of credit. Good credit can open doors for you and help you keep your options open if you want to resize or refinance your home down the road. Monitoring your credit starting now will help keep you on the right path all the way to retirement. END
 TITLE: What Is a Solo 401(k)? CONTENT: How a Solo 401(k) Works\n-----------------------\nThis type of retirement account, also known as an individual 401(k) or one-participant 401(k), has the same rules and requirements that apply to traditional 401(k)s. The only difference is that it's designed specifically for business owners who don't have employees. With a traditional 401(k), the contributions you put in as an employee are tax-deductible. That means they reduce your taxable income today—a nice perk during your working years. Your employer may also choose to match some or all of your contributions. Solo 401(k)s are no different, but they are unique in that the business owner fulfils both roles—acting as both the employee and the employer.\nYou can make regular contributions to the solo 401(k) and, as the employer, you can also kick in a certain percentage of your total compensation. This sets the stage for higher contributions when compared with regular 401(k)s or individual retirement accounts (IRAs). But just like these accounts, you'll be taxed on the withdrawals you make in retirement. If you choose to tap your account balance prior to age 59½, you may also be hit with a 10% penalty. END
 TITLE: What Is a Solo 401(k)? CONTENT: How Much Can You Contribute to a Solo 401(k)?\n---------------------------------------------\nContribution limits for a solo 401(k) are unique since the business owner serves as both the employee and employer. If you have a one-participant 401(k) in 2021, you can contribute as follows:\n*   **As the employee:** Up to $19,500 of earned income. Those who are 50 or over can contribute up to $26,000.\n*   **As the employer:** Up to 25% of your compensation. If you're self-employed and your business isn't structured as a corporation, you can calculate your earned income by taking your net earnings and subtracting the following:\n    *   Half of your self-employment tax\n    *   Contributions for yourself\nWhen taken together, total contributions to a solo 401(k) must not exceed $58,000 in 2021. That number jumps up to $64,500 for those 50 or older. This figure includes both the elective deferrals you make as the employee _and_ contributions on the employer side.\nAnother distinctive feature of a solo 401(k) is that it extends to one other person besides the business owner. If your spouse also earns income from the business, they can enroll in the plan as well—potentially accelerating your family's retirement contributions in the process.\nWhat Are the Tax Benefits of a Solo 401(k)?\n-------------------------------------------\nA one-participant 401(k) has a number of tax advantages that make it an attractive retirement savings plan for self-employed workers.\n*   **Your contributions are tax-deductible.** As previously mentioned, the money you put into a solo 401(k) as an employee will reduce your tax liability during your pre-retirement years. That money also enjoys tax-deferred growth. There are some tax benefits on the employer side as well. Profit-sharing contributions count as a deductible business expense for businesses that are incorporated. If not, they'll likely count as a personal income deduction.\n*   **You can opt for a Roth solo 401(k).** Traditional 401(k)s are funded with pretax dollars; not so with Roth 401(k)s. These types of retirement accounts are funded with contributions that have already been taxed. While you'll miss out on the tax deduction today, you can enjoy tax-free distributions in retirement.\nHow to Open a Solo 401(k)\n-------------------------\nIf you decide that a solo 401(k) is right for you, opening one isn't unlike opening an IRA. You can establish this type of account with many investment brokerages. Be prepared to provide an employer identification number (EIN) and appoint a plan administrator (most likely you). Once you've completed all the paperwork, you can choose your investment options. Some brokers provide additional assistance with this, so it's wise to review all fees and investment support before finalizing your plan.\nManaging your solo 401(k) plan should be pretty straightforward since there are only one to two participants. Just keep in mind that the IRS will require you to file Form 5500-EZ annually once your plan exceeds $250,000 in assets. That said, another perk of a solo 401(k) is that it allows you to borrow against it. While taking out a 401(k) loan isn't generally advised because it can set back your retirement savings, it could serve as a last resort in a financial emergency.  \nThe Bottom Line\n---------------\nA one-participant 401(k) is a retirement plan designed specifically for business owners with no employees. It can allow for larger contributions while providing notable tax benefits along the way. Consider it another financial resource to keep in your toolbox. The same can be said for monitoring your credit—something you can do for free with Experian. It's a simple move that can help detect potential fraud and keep your financial health going strong. END
 TITLE: What Is a Solo 401(k)? CONTENT: What Are the Tax Benefits of a Solo 401(k)?\n-------------------------------------------\nA one-participant 401(k) has a number of tax advantages that make it an attractive retirement savings plan for self-employed workers.\n*   **Your contributions are tax-deductible.** As previously mentioned, the money you put into a solo 401(k) as an employee will reduce your tax liability during your pre-retirement years. That money also enjoys tax-deferred growth. There are some tax benefits on the employer side as well. Profit-sharing contributions count as a deductible business expense for businesses that are incorporated. If not, they'll likely count as a personal income deduction.\n*   **You can opt for a Roth solo 401(k).** Traditional 401(k)s are funded with pretax dollars; not so with Roth 401(k)s. These types of retirement accounts are funded with contributions that have already been taxed. While you'll miss out on the tax deduction today, you can enjoy tax-free distributions in retirement. END
 TITLE: What Is a Solo 401(k)? CONTENT: How to Open a Solo 401(k)\n-------------------------\nIf you decide that a solo 401(k) is right for you, opening one isn't unlike opening an IRA. You can establish this type of account with many investment brokerages. Be prepared to provide an employer identification number (EIN) and appoint a plan administrator (most likely you). Once you've completed all the paperwork, you can choose your investment options. Some brokers provide additional assistance with this, so it's wise to review all fees and investment support before finalizing your plan.\nManaging your solo 401(k) plan should be pretty straightforward since there are only one to two participants. Just keep in mind that the IRS will require you to file Form 5500-EZ annually once your plan exceeds $250,000 in assets. That said, another perk of a solo 401(k) is that it allows you to borrow against it. While taking out a 401(k) loan isn't generally advised because it can set back your retirement savings, it could serve as a last resort in a financial emergency. END
 TITLE: What Is a Solo 401(k)? CONTENT: The Bottom Line\n---------------\nA one-participant 401(k) is a retirement plan designed specifically for business owners with no employees. It can allow for larger contributions while providing notable tax benefits along the way. Consider it another financial resource to keep in your toolbox. The same can be said for monitoring your credit—something you can do for free with Experian. It's a simple move that can help detect potential fraud and keep your financial health going strong. END
 TITLE: Tips for Choosing a Credit Counseling Agency CONTENT: A credit counseling agency is an organization that helps you get out of debt and manage your money. Credit counseling agencies, also sometimes called debt counseling agencies, focus on financial education and work with you to navigate the debt paydown process and offer strategies to help you avoid taking on more debt than you can afford in the future.\nA vital service credit counseling agencies can offer is helping you understand your credit report and score. Your credit report—and credit score based on the information in your report—is important because it tells lenders how risky it might be to lend you money. Reviewing your report to ensure all the information there is correct, as well as understanding areas for improvement in your credit score, are good first steps in helping get your debt under control. You can review your Experian credit report and credit score for free to get an idea of what's there before you meet with a credit counselor.\nCredit counseling agencies can also help you:\n*   Get a realistic picture of your finances\n*   Help you make a budget\n*   Give you a better understanding of how debt works\n*   Know your rights and responsibilities as a borrower\n*   Provide free workshops and materials\n*   Create a debt management plan to pay down your debts\nCredit counseling agencies can be helpful in many ways, but at a minimum, you can expect them to review your income and expenses, create an action plan for getting back on track, and make recommendations for managing your credit. END
 TITLE: Tips for Choosing a Credit Counseling Agency CONTENT: Should I Use a Credit Counseling Service?\n-----------------------------------------\nUsing a credit counseling service isn't for everyone, but there are some telltale signs it could be helpful to you, especially if you:\n*   Regularly miss credit card payments\n*   Struggle to pay your mortgage\n*   Consistently pay credit cards late\n*   Make only the minimum payments on credit cards\n*   Are surprised by unforeseen bills or expenses\n*   Are receiving calls from collection agencies\n*   Have difficulty understanding your credit report\n*   Live paycheck to paycheck\n*   Feel overwhelmed by your debt\nBefore you find a credit counselor, it's essential to take a few minutes to consider your \"why\": Are you trying to find ways to improve your overall financial health? Did you just receive an unexpected debt collection notice? Are you trying to avoid accruing even more interest on your debt? Whatever your biggest needs are, jot them down so that you can make the best use of your time with a counselor. END
 TITLE: Tips for Choosing a Credit Counseling Agency CONTENT: How Do I Choose a Credit Counseling Agency?\n-------------------------------------------\nOnce you've figured out what areas you need help with, you'll need to find a credit counseling agency that can help you work through your financial issues. It can be hard to know whom to trust with something as important as your financial well-being. Fortunately, there are trustworthy resources available to help match you with a certified credit counselor. The first step is to look for nonprofit agencies that work with certified credit counselors. The two most well-known resources are:\n*   The National Foundation for Credit Counseling (NFCC): This nonprofit financial counseling organization and its member agencies offer a free online assessment to determine if financial counseling is right for you. Their website is easy to navigate, and you can arrange an appointment with a certified counselor online or over the phone.\n*   Financial Counseling Association of America (FCAA): FCAA is another nonprofit resource that lets you search for certified agencies by state and also offers the Debt Decisioning Tool, a free calculator to help you get a good snapshot of your current financial health.\nThese organizations can connect you with certified credit counselors. Once you've developed a list of potential credit counseling agencies, make sure the agencies you're considering are certified by checking the U.S. Department of Justice's list of agencies approved by state. Also check with your state's attorney general's office, local consumer protection agency and the Better Business Bureau to see if there are any customer complaints against the agency and make sure they're in good standing.\nAsk the counselors for free information about their services and see if their expertise lines up with your list of needs and priorities. A reputable credit counseling organization should be willing to send you free information about itself and the services it provides without requiring you to give any details about your situation. If a service doesn't do that, consider this a red flag and go elsewhere for help.\nCredit counseling agencies are not the same as for-profit \"credit repair\" companies, which charge fees and make promises to change information on your credit report. These companies often are scams and should be avoided. END
 TITLE: Tips for Choosing a Credit Counseling Agency CONTENT: How Much Does Credit Counseling Cost?\n-------------------------------------\nAre you worried about the prospect of going into even more debt to pay for credit counseling services? You'll be happy to know that many nonprofit credit counseling agencies offer helpful services at no charge. In fact, the first step of any credit counseling service is a free budget and debt counseling appointment. Your selected advisor will get information from you regarding your financial situation, explain your options for managing your debt, offer recommendations, and help you develop a plan to meet your goals.\nSome additional services may come with a fee, however. For example, you might decide to enroll in a debt management plan. With this arrangement, you make a single, recurring payment to the credit counseling agency. In turn, the agency makes monthly payments to each of your creditors (with whom they may negotiate reduced payments or interest charges). Typically these plans have an initial application fee and an additional monthly fee, which is either a fixed rate or a percentage of your debt. The industry average application fee is around $75, and a typical monthly cost might be between $25 and $55 per month.\nA word of caution: If a counseling service asks for payment before they've even met with you for an initial consultation, it could be a scam. No certified, nonprofit agencies found through FCAA or NFCC will require upfront payment before you meet.\nWith many certified nonprofit credit counseling agencies offering free initial consultations, there's not much downside to enlisting the help of a counselor other than a bit of your time. Understanding the services they offer and how they might be able to help you navigate your debt payments could be well worth it. END
 TITLE: Tips for Choosing a Credit Counseling Agency CONTENT: The Bottom Line\n---------------\nCredit counseling could be an excellent way to get back on track with your finances if you struggle to cover payments due to low income or too high expenses that don't leave you enough money for living costs. There are many resources to help you along your journey, including Experian's debt resource center.\nMonitoring your credit can help you understand your current debt situation and also help you track your progress as you begin your debt paydown. Experian offers free credit monitoring, which allows you to check your credit regularly and will also update you when there's a change to your Experian credit report so you can keep an eye out for any potentially fraudulent activity. END
 TITLE: 10 Alternatives to Payday Loans CONTENT: Why Should I Avoid Payday Loans?\n--------------------------------\nTaking out a payday loan is one of the most expensive ways to borrow money. A two-week payday loan with a fee of $15 per $100 borrowed would result in fees equivalent to an annual percentage rate (APR) of nearly 400%, according to the Consumer Financial Protection Bureau. By comparison, credit cards have an average APR of around 16%.\nA common amount for a payday loan is $500, although it may be more or less. Generally, a borrower repays the entire loan on their next payday or when they receive another type of payment, such as a Social Security check. The timeframe for paying off a payday loan usually ranges from two to four weeks. Most payday loans don't require a credit check or proof that you can repay the loan.\nIf you fail to pay off the loan within the time period spelled out in your lending agreement, you might be able to extend the loan through what's known as a renewal or rollover. However, you may be hit with a renewal or rollover fee of $45, for example, on top of the principal and interest already owed. This cycle could continue every time you renew or roll over a payday loan, perhaps resulting in several hundred dollars in extra fees.\nSome states ban payday loans, and some payday lenders don't do business in states where interest rates and fees are tightly regulated. The maximum size of payday loans is regulated in other states. END
 TITLE: 10 Alternatives to Payday Loans CONTENT: What Are Better Alternatives to Payday Loans?\n---------------------------------------------\nThankfully, a payday loan isn't your only option for quickly accessing cash. Here are 10 better alternatives.\n### 1\\. Consider a Payday Alternative Loan (PAL)\nCredit unions that are members of the National Credit Union Administration offer payday alternative loans (PALs). You could use money from a PAL to avoid a payday loan or to pay off an existing one. Lower-cost PALs give a borrower more time to pay off a loan than a payday loan does.\nA credit union can charge an application fee of up to $20 for a PAL. PAL amounts can range from $200 to $1,000, with the payoff period lasting one to six months. As many as three PALs may be given to the same borrower during a six-month period, as long as no PAL overlaps or rolls over.\nCommonly, credit unions offer PALs with APRs comparable to that of credit cards.\n### 2\\. Apply for a \"Bad Credit\" Personal Loan\nInstead of getting a payday loan, you may be able to qualify for a \"bad credit\" personal loan. A number of lenders offer these loans for amounts that range from $500 to $10,000. However, APRs can commonly be quite high, and you may wind up paying an origination fee or other charges too.\nUnlike home and auto loans, these loans don't require you to put up property as collateral. They typically require a credit check.\n### 3\\. Borrow From Family or Friends\nIf you're in a financial bind, a family and friends loan may be a great way to dodge a high-interest payday loan. In fact, you may even be able to borrow money with no interest.\nRegardless of the interest rate you decide on, put your loan agreement in writing. This contract should include the amount of money you're borrowing, the interest being charged or the collateral being used, the payoff period, and the payment amounts and due dates.\nFailure to repay a loan of this type won't hurt your credit, but it can result in legal action and a severed friendship or strained family relationship.\n### 4\\. Ask Your Creditor About a Payment Plan\nIf you're short on cash, borrowing more might not be a great option. Instead of going down that road, you might try asking your creditors whether they'll put you on a payment plan.\nUnder this kind of plan, you agree to pay a smaller amount of money each month over a certain period of time. While you might end up paying more interest under a payment plan, it could ease your current cash crunch without causing you to take on more debt.\n### 5\\. Seek Help From a Credit Counselor\nA nonprofit credit counseling agency may be the way to go if you feel like you're swimming in debt.\nA certified credit counselor can help you pay off your debt faster, lower your interest rates, work with you on a household budget and improve your financial situation. Depending on which services you utilize, nonprofit credit counseling agencies may provide their services at little to no cost.\n### 6\\. Get a Side Hustle\nDo you have a little extra time on your hands? If so, you may be able turn that time into cash through a side gig. Here are a few examples:\n*   Become an online tutor.\n*   Sell unused or retired clothing online.\n*   Do part-time freelance work, such as web design, writing or graphic design.\n*   Drive for a ride-hailing service like Uber or Lyft.\n*   Sell craft items that you make, such as quilts or jewelry.\n### 7\\. Consider a Low-Interest Credit Card\nAlthough your credit may be a bit wobbly right now, you might be able to get a low-interest credit card (or at least a card with an APR that's considerably lower than the APR for a payday loan). Use Experian CreditMatch™ to see whether you can qualify for a low-interest card. If you're having a hard time paying back credit card debt, a balance transfer card can give you some breathing room. You'll typically need good credit or better to qualify for a credit card with a low interest rate.\n### 8\\. Explore Lending Circles\nAs a member of a lending circle, you can borrow money from other people at no cost to pay off high-interest loans, cover emergency expenses, buy a car and so forth. A lending circle includes six to 12 people. Loan amounts range from a couple hundred dollars to thousands of dollars. Mission Asset Fund operates one of the most well-known lending circles.\n### 9\\. Investigate Peer-to-Peer Loans\nPeer-to-peer loans are available through online platforms, such as LendingClub and Prosper, that match potential borrowers with investors willing to issue loans. At Prosper, APRs range from 7.95% to 35.99%. LendingClub advertises APRs from 7.04% to 35.89%. Keep in mind that peer-to-peer loans typically come with fees based on the percentage of the amount you've borrowed.\n### 10\\. Look Into a Cash Advance From a Credit Card\nA credit card cash advance typically charges a lower interest rate than a payday loan. Keep in mind, though, that the APR for a cash advance from a credit card may be higher than the APR for purchases made on the same credit card. You'll also be charged a fee for withdrawing a cash advance (3% or 5% of the amount borrowed is common). Beware of the potential to increase your credit utilization (which can hurt your credit) and accrue large fee and interest charges, however. END
 TITLE: 10 Alternatives to Payday Loans CONTENT: The Bottom Line\n---------------\nPayday loans are easy to get, but consumers can pay a steep price for that convenience. Many alternatives are worth considering. In a lot of cases, you'll want to get your free credit score and free credit report from Experian to see where your credit stands before applying for an alternative to a payday loan. Doing so can help you narrow your options and better ensure your application gets approved. END
 TITLE: What Is a Balance Transfer and How Does It Work? CONTENT: How Do Balance Transfers Work?\n------------------------------\nThe goal of a balance transfer is to save money on interest while you pay off credit card debt. You can move a credit card balance to a new card, but typically, you're not allowed to transfer a balance from one card to another that's issued by the same company or any of its affiliates.\nFor instance, Wells Fargo won't approve a balance transfer from a Wells Fargo Platinum card to a Wells Fargo Active Cash℠ Card because they're both issued by Wells Fargo. But you may be able to transfer a Wells Fargo card balance to a Chase card, for example, if you qualify.\nBeyond credit card debt, you may also be able to move other types of debt, like personal loans, directly to a balance transfer credit card. Or the card issuer may provide paper checks you can use to pay off balances on other accounts, like auto loans or home equity lines of credit (HELOCs). The amount you pay with the check will then be added to your balance transfer card balance and accrue interest at the promotional annual percentage rate (APR). END
 TITLE: What Is a Balance Transfer and How Does It Work? CONTENT: How Much Money Can You Save With a Balance Transfer?\n----------------------------------------------------\nThe amount a balance transfer can save you depends on the new interest rate you receive and the length of your 0% APR promotional period.\nFor example, say you have a $3,000 balance on a credit card with an APR of 16.3%. Your minimum monthly payment would be $90, and it would take you 152 months to pay off the balance by paying only the minimum. You'd pay $2,239 in interest charges in that time.\nNow imagine you transfer the $3,000 balance to a card that carries a 0% intro APR, a 3% balance transfer fee and an 18-month interest-free period. If you pay off your balance in 18 months, you'd pay $0 in interest, and your payment would increase to about $167 per month. You'd also pay a $90 balance transfer fee.\nIf you kept your monthly payment the same—$90 rather than $167—you'd take 36 months to pay off your debt. For 18 of those months, you'd pay interest. If your interest rate after the promotional period increased to 14.99%, you'd pay about $252 in interest in total. That's still nearly $2,000 in interest savings compared with not using a balance transfer card at all. END
 TITLE: What Is a Balance Transfer and How Does It Work? CONTENT: What to Consider Before Completing a Balance Transfer\n-----------------------------------------------------\nWhen you're evaluating whether to pursue a balance transfer, consider the following:\n*   **Credit score requirements:** Check your credit score before you proceed. Most balance transfer credit cards require good to excellent credit—670 or higher. If you're not quite there yet, look into ways to improve your score.\n*   **Effect on your credit score:** When you apply for a new credit card, your credit score may dip as a result of a hard inquiry being added to your credit report. The effect will likely be minor, if there's any effect at all. Still, it's something to keep in mind if you're applying for new credit, such as a mortgage, in the near future. On the other hand, transferring a balance could be a way to improve your credit utilization, which is an important credit scoring factor. The new card would increase your overall credit limit and your individual card balance on the card you're transferring the balance from.\n*   **Balance transfer limits:** Your new credit card issuer will take a look at your credit history and determine your credit limit. You can then likely only transfer a certain proportion or dollar amount of that limit to the card. Prioritize transferring the highest-interest debt you can to save the most money.\n*   **Time period to complete the transfer:** You may be allotted as little as 45 to 60 days from account opening to initiate the balance transfer. Make sure you set aside time to do so.\n*   **Calculate the fees and savings:** Since you'll most likely have to pay a balance transfer fee, make sure the interest savings from the transfer justify it. END
 TITLE: What Is a Balance Transfer and How Does It Work? CONTENT: How to Complete a Balance Transfer\n----------------------------------\nTo begin the balance transfer process, and to make the most of your card:\n1.  **Choose the right** **balance transfer credit card**. You'll likely need a good or excellent credit score to qualify. Also specifically look for cards that offer a 0% intro APR for 12 months or longer and as low a balance transfer fee as possible.\n2.  **Verify the credit limit and fees.** You may receive a limit that is less than your total debt. Check the card's fees, transfer and purchase APR, the length of its promotional period, and the circumstances under which you could lose access to the 0% intro APR deal, including making a late payment.\n3.  **Determine how much to transfer.** Consider the new card's credit limit when planning your transfer. The new card's credit limit may mean you're only able to transfer a portion of an existing card's balance. Moving the balance with the highest interest rate will likely save you the most on interest.\n4.  **Complete your transfer.** Verify with the issuer whether you can make the transfer online, and check that you have the necessary information handy, including the original account number, to do so. Make sure to complete the transfer within the time limit the issuer specifies. If you're using a paper check to complete the transfer, make sure you fill it out completely and accurately to prevent any delays.\n5.  **Use the new card wisely.** Continue making payments on your previous balances until your new card's issuer confirms the transfer is complete. Don't make any purchases while you pay down balances on the new card. Additionally, calculate the monthly payment you'll have to make in order to pay off the balance by the end of the 0% APR period. Stick as closely to that schedule as you can. END
 TITLE: What Is a Balance Transfer and How Does It Work? CONTENT: Best Balance Transfer Credit Cards\n----------------------------------\n[](;site=exp&placement=ae-single-embed&sessionid=69BF63E3-7477-9D68-72EF-C5BAA701A70F&pageid=blogs:ask-experian:what-is-a-balance-transfer-and-how-does-it-work&previouspageid=&ecsstaticid=512AC342-64A0-3046-F31E-9E697654A67D)\nWells Fargo Platinum card\n-------------------------\n[Apply](;site=exp&placement=ae-single-embed&sessionid=69BF63E3-7477-9D68-72EF-C5BAA701A70F&pageid=blogs:ask-experian:what-is-a-balance-transfer-and-how-does-it-work&previouspageid=&ecsstaticid=512AC342-64A0-3046-F31E-9E697654A67D)\non Wells Fargo's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nWells Fargo Platinum card\n-------------------------\nAPR\n16.49%-24.49% (Variable)\nIntro APR\n0% for 18 months from account opening on purchases and qualifying balance transfers\n##### Card Details\n*   0% intro APR for 18 months from account opening on purchases and qualifying balance transfers, then a 16.49% to 24.49% variable APR; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5\n*   $0 Annual Fee\n*   Get up to $600 protection on your cell phone (subject to $25 deductible) against covered damage or theft when you pay your monthly cellular telephone bill with your Wells Fargo Platinum card\n*   Easy access to your FICO® Credit Score with Wells Fargo Online®\n*   Monitor your spending, purchases and any suspicious activity with text and email alerts and notifications\n*   Convenient tools to help create a budget and manage your spending with My Money Map\n*   Select \"Apply Now\" to learn more about the product features, terms and conditions\n*   Matched For You are statements made by Experian and may not reflect Wells Fargo’s underwriting standards\n[Rates and Fees](;offerid=949414.284&type=3&subid=0)\n[](;site=exp&placement=ae-single-embed&sessionid=69BF63E3-7477-9D68-72EF-C5BAA701A70F&pageid=blogs:ask-experian:what-is-a-balance-transfer-and-how-does-it-work&previouspageid=&ecsstaticid=512AC342-64A0-3046-F31E-9E697654A67D)\nWells Fargo Active Cash℠ Card\n-----------------------------\n[Apply](;site=exp&placement=ae-single-embed&sessionid=69BF63E3-7477-9D68-72EF-C5BAA701A70F&pageid=blogs:ask-experian:what-is-a-balance-transfer-and-how-does-it-work&previouspageid=&ecsstaticid=512AC342-64A0-3046-F31E-9E697654A67D)\non Wells Fargo's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nWells Fargo Active Cash℠ Card\n-----------------------------\nAPR\n14.99%-24.99% (Variable)\nIntro APR\n0% Intro APR for 15 months from account opening on purchases and qualifying balance transfers\nRewards\n2% cash back on Purchases\n**Intro Bonus**\nEarn a $200 cash rewards bonus after spending $1,000 on purchases in the first 3 months\n##### Card Details\n*   New! Earn a $200 cash rewards bonus after spending $1,000 on purchases in the first 3 months\n*   Earn unlimited 2% cash rewards on purchases\n*   0% intro APR for 15 months from account opening on purchases and qualifying balance transfers, then a 14.99% to 24.99% variable APR; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5\n*   $0 annual fee\n*   No category restrictions or sign ups and cash rewards don’t expire as long as your account remains open\n*   Enjoy a premium collection of benefits at a selection of the world's most intriguing and prestigious hotel properties with Visa Signature Concierge\n*   Get up to $600 protection on your cell phone (subject to $25 deductible) against covered damage or theft when you pay your monthly cellular telephone bill with your Wells Fargo Active Cash℠ Card\n*   Select “Apply Now” to learn more about the product features, terms and conditions\n*   Matched For You are statements made by Experian and may not reflect Wells Fargo’s underwriting standards\n[Rates and Fees](;offerid=954920.366&type=3&subid=0) END
 TITLE: What Is a Balance Transfer and How Does It Work? CONTENT: Is a Balance Transfer the Right Option for You?\n-----------------------------------------------\nConsider a balance transfer if your credit qualifies you for a card with a promotional 0% APR period and you can commit to paying off the whole balance, or at least a significant portion of it, in that time. A balance transfer might also be a good option if you can find a card with no balance transfer fee or the amount you'd pay in fees wouldn't cut notably into your savings.\nIn the right circumstances, a balance transfer can be a ticket to freedom from overwhelming debt, or a meaningful step in that direction. END
 TITLE: How to Prepare for Student Loan Payments to Resume Soon CONTENT: Will Federal Student Loan Forbearance Be Extended?\n--------------------------------------------------\nThe CARES Act not only paused payments on federal student loans but also dropped interest rates to zero and halted collection efforts by the Department of Education on loans that are in default.\nThe initial provision was slated to end September 30, 2020, but the Trump and Biden administrations both issued extensions. According to the Biden administration, the August extension to January 31, 2022, will be the last one issued, so student loan borrowers should start thinking now about how they'll pay down their student loans once it ends. END
 TITLE: How to Prepare for Student Loan Payments to Resume Soon CONTENT: Depending on your situation and budget, there may be several ways you can approach paying down your student loans. While the CARES Act provisions dropped the minimum required payment to $0, you still owe the full balance remaining on the loan. Here are some ways you can start thinking about preparing for student loan payments to start up again.\n### Make a Budget\nIf you don't already have a budget in place, now may be a good time to start using one. A budget is a simple way to help you understand exactly where all of your money is going.\nTo make a budget, start by writing down your income and expenses from the last few months to get an idea of where your money is coming from and where it's going. Depending on your comfort level, break out your expenses into different categories—the more categories you have, the easier it will be to make decisions about how to allocate your spending.\nWith that information in mind, you can start planning how you want to spend your money for the upcoming month, including your student loan payment. Check with your loan servicer to confirm your payment amount in advance, as it's possible it may have changed. Once student loan payments start up again, your budget will help you make sure you have enough cash flow for that expense, along with all of your other ones.\n### Cut Costs\nIt's been a long time since student loan payments were required, and your budget may have changed significantly by now. If you've started using the money that would have otherwise gone to student loan payments for other purposes, you may have to cut back in certain areas of your budget.\nIf you've improved your financial footing, however, you could consider putting more toward your student loans than is required. Even a little extra every month can shave off months of repayment and hundreds or even thousands of dollars in interest.\nAs you look for areas to cut back, be honest with yourself but also reasonable, so you can achieve your debt payoff goals while also being able to pay your other bills on time.\n### Earn More Income\nIf you have the time, you may also look into opportunities to earn more income. This may include working overtime at your current job, taking on a second, part-time job or starting a side hustle.\nIf you're thinking about getting a side hustle, opportunities are plentiful, so do some research based on what you enjoy doing or what you're good at to find the right fit.\nSome common side hustle options include:\n*   Driving for Uber or Lyft\n*   Delivering food or groceries for apps like DoorDash and Instacart\n*   Buying and selling used items online\n*   Renting a room on a short-term rental website\n*   Performing odd jobs on Craigslist, Mechanical Turk or Thumbtack\n*   Tutoring young students\n*   Becoming a mystery shopper\n*   Walking dogs\nTake some time to consider several options, including the time requirement, flexibility and pay, to find the best one for you. END
 TITLE: How to Prepare for Student Loan Payments to Resume Soon CONTENT: What to Do if You Can't Afford Your Student Loan Payments\n---------------------------------------------------------\nWhile many student loan borrowers have managed to get back on their feet financially since the economy was hit hard by the pandemic, others may still be experiencing financial hardship.\nIf you believe you might still have trouble paying your student loans once the federal student loan payment pause ends, here are some potential solutions:\n*   **Request forbearance or deferment.** The federal government offers forbearance and deferment for people experiencing financial difficulties. Your options may depend on your situation, so contact your student loan servicer directly for more information.  \n*   **Get on an income-driven repayment plan.** The Department of Education offers four different income-driven repayment plans, all of which can reduce your monthly payment to 10% to 20% of your discretionary income. That way, you don't have to worry about the end of a forbearance plan creeping up on you and being right back where you started. Income-driven repayment plans also extend your repayment plan up to 20 or 25 years, after which any remaining balance is forgiven.\nThese options can provide immediate relief and potentially help you get to where you need to be financially to continue paying down your student loan debt.\nStudent loan refinancing can be another way to reduce your monthly payments, but private lenders typically don't offer income-driven repayment plans, and their forbearance options are often less generous than what the federal government provides. END
 TITLE: How to Prepare for Student Loan Payments to Resume Soon CONTENT: Monitor Your Credit as You Pay Down Your Debt\n---------------------------------------------\nRegardless of how you approach your student loan debt, it's important to keep track of your credit score and credit reports.\nWith Experian's free credit monitoring service, you'll be able to keep track of your FICO® Score☉ and regularly review your Experian credit report to understand what impacts your score and to address issues as they come up.\nYou'll also get real-time alerts when changes are made to your credit report, such as a new account or inquiry. As you monitor your credit, you'll be better positioned to build a strong credit history and to prevent potential negative items from doing significant damage to your credit score. END
 TITLE: How Does a Personal Line of Credit Affect Your Credit? CONTENT: A personal line of credit is similar to a credit card account. A bank or other financial institution extends a line of credit with the invitation to access this money up to a certain amount whenever you need it. Any money you use becomes revolving debt that you pay back over time just like you would with a credit card, with minimum payments and no early repayment penalty. Limits depend on a variety of factors, including your credit score. Typical lines range from $1,000 to $25,000 or more.\nInterest rates on personal lines of credit are generally lower than they would be on a credit card, currently starting around 10% with good credit. Lines of credit may have limited terms, typically three to five years. When the term ends, you can continue paying your outstanding balance until it's paid off, but you no can no longer use the account to draw additional money. Secured lines of credit that use certificates of deposit or investment accounts as collateral may offer higher limits, depending on the size of the account. Some lines of credit come with annual fees.\nA long time ago, when credit card payments pretty much always involved using an actual card, a personal line of credit was a handy way to pay bills or cover expenses that did not accept a card for payment. You might have used it to cover overdrafts on your checking account, for example, or medical bills. Now that you can pay for almost anything with a credit card, the benefit of a personal line of credit may be more psychological than functional: It's a way of borrowing a set amount of money at a decent interest rate and paying it back as a separate debt over time. END
 TITLE: How Does a Personal Line of Credit Affect Your Credit? CONTENT: How Does a Personal Line of Credit Affect Your Credit?\n------------------------------------------------------\nCredit reporting agencies typically track personal lines of credit as revolving credit, like a credit card account. Since a credit line is treated as revolving debt, both your maximum credit line limit and your balance affect your credit utilization. Your payment history is also reflected on your credit report, which could help or hurt your score depending on how you manage the account. Here's more detail on how a personal line of credit affects your credit:\n*   **Available credit on your personal line of credit can improve credit utilization**, which accounts for 30% of your FICO® Score☉ . To calculate your credit utilization ratio, divide your total credit limits by your total debt on credit cards and personal lines of credit. Quick example: If the credit limits on your credit cards and personal line of credit add up to $40,000, and you have $4,000 in combined debt, your credit utilization is 10%.\n*   **Debt on your personal line of credit adds to your revolving debt**, along with your credit card balances. Revolving debt raises your credit utilization. When credit utilization approaches and climbs above 30%, it has a greater potential to harm your credit; those with the highest credit scores tend to keep it under 10%.\n*   **On-time payments on your line of credit help your credit score**. Payment history is the most heavily weighted factor in calculating your credit score, accounting for 35% of your FICO® Score. On the other hand, payments that are 30 days or more late can stay on your credit report and affect your score for up to seven years.\n*   **A long-standing personal line of credit adds to your length of credit history**. However, a new line shortens your overall history of accounts as will closing a personal line of credit. A shorter credit history may lower your credit score.\nWhat if your bank closes your personal line of credit before your term is up? As these accounts become less common, some banks may stop offering them or even close accounts. If this happens, your available credit would shrink and your length of credit history could drop. A reduced credit limit could affect your overall credit utilization ratio. If this happens to you, contact your bank to find out what arrangements they might be able to make to help minimize the impact to your credit. END
 TITLE: How Does a Personal Line of Credit Affect Your Credit? CONTENT: 5 Reasons a Personal Line of Credit May Not Be a Good Fit\n---------------------------------------------------------\nAs personal lines of credit become less popular with financial institutions, new types of credit are replacing them. Here are a few reasons you might not want to choose a personal line of credit—and what you might choose instead.\n1.  **You can't find a personal line of credit.** Not every bank offers personal lines of credit. As with any type of credit, you'll have to shop for good terms.\n2.  **Your credit card offers a pay-in-installments feature.** Some credit cards now allow cardholders to separate out large purchases and pay them off in regular installments over time. My Chase Plan, offered on Chase cards like the Chase Freedom Flex℠, is one example. This will allow you to pay off your purchase off as if it's a separate loan.\n3.  **A** **personal loan** **works just as well.** If you want to borrow a set amount of money at a favorable interest rate, a personal loan might work for you. Bonus: Personal loans count as installment loans, not revolving debt, so your credit utilization won't be affected.\n4.  **You can buy now, pay later,** often without interest, using a company like Klarna or Afterpay. No interest beats low interest any day.\n5.  **A** **home equity line of credit (HELOC)** **is a better fit.** Although some personal lines of credit offer six-figure limits, a HELOC may be more appropriate if you're hoping to take on a major home repair or renovation. A HELOC may offer a lower APR and a larger credit line. The downside: Your home is collateral, and can be at risk of repossession if you default on your loan.\nA personal line of credit—or any of the choices listed above—is a better option than a payday loan or title loan, either of which can trap you into a cycle of debt with ultra-high interest rates, and ballooning payments. END
 TITLE: How Does a Personal Line of Credit Affect Your Credit? CONTENT: The Right Kind of Credit for Your Situation\n-------------------------------------------\nIf you're concerned about how a personal line of credit might affect your credit, this is an excellent opportunity to get up to speed on your credit file. Check your credit score and report for free with Experian anytime to get a clear, personalized picture of how you're managing your credit—and what you can do to improve.\nIn the meantime, a personal line of credit can be a useful tool for managing and diversifying your overall credit portfolio. With so many options available in the market for credit, you have an excellent chance of finding a solution that fits your situation and needs. END
 TITLE: What Does Homeowners Liability Insurance Cover? CONTENT: All standard homeowners insurance policies include liability coverage. This insurance protects you if a visitor is injured on your property, or if you or a family member living in your home accidentally hurts another person or damages their belongings off your property. If your children are playing football and break a neighbor's window, for example, home liability insurance can pay for it.\nThe two key components of home insurance liability coverage are _personal liability coverage_ and _medical expense coverage_.\n**Personal liability**: If you're sued due to a covered incident, homeowners insurance liability coverage pays for (and usually appoints) an attorney for you. It also pays damages for which you're found responsible, up to the limits of your coverage.\n**Medical expenses**: When a visitor is injured on your property, the policy may help pay their medical bills, even if they have health insurance. It's no-fault coverage, which means the injured party can generally submit medical bills to your insurer without filing a claim against you.\nTypically, home liability insurance also covers:\n*   **Lost wages**: If the injured person can't work due to their injuries and you're found to be at fault, your policy can reimburse them.\n*   **Pain and suffering**: These can result if a court awards damages to compensate the injured person for mental, emotional and physical pain from the injury.\n*   **Death benefits:** These include funeral costs and death benefits for survivors if someone dies due to an injury in your home.\n*   **Libel and slander**: Most homeowners liability insurance covers you in lawsuits that accuse you of defaming someone's character. END
 TITLE: What Does Homeowners Liability Insurance Cover? CONTENT: What Is Not Covered by Home Insurance Liability?\n------------------------------------------------\nInjuries or damages not covered by home insurance liability commonly include:\n*   **Injuries to your family members**: This is covered by your health insurance.\n*   **Intentional injury or property damage**: If a salesperson falls down your steps, it's covered by liability insurance. If you push them down the steps, it's not covered.\n*   **Dog bites**: The way insurance providers handle dog bites varies. Some won't insure you if you own a breed the insurer considers \"dangerous\" or if your dog has been declared vicious according to your local ordinances. Restraining the dog with a cage or a chain or showing proof of obedience training may qualify you for coverage.\n*   **Car accidents**: These should be covered by auto insurance. Some policies have other out-of-home exclusions, such as boating accidents.\n*   **Business-related injuries**: If you run a business out of your home and someone visiting you for business purposes is injured on your property, that would be covered by business insurance.\nThere may be other exclusions, so review your policy carefully to clarify what is and isn't covered. END
 TITLE: What Does Homeowners Liability Insurance Cover? CONTENT: What to Do if Someone Is Injured in Your Home\n---------------------------------------------\nIf you think you or the injured person may want to file a claim, tell the insurance company about the incident right away. (Many policies require notifying the insurer as soon as possible, or the claim may not be covered.) If the person later sues you, inform your insurance company immediately.\nThe process that follows a personal injury is similar to what happens after a car accident. Take photos of any damages or injuries as well as the setting where they occurred. Get names and contact information of any witnesses, as well as the injured person, so your insurance company can contact them to handle the claim.\nFor the injury to be covered, the injured person generally must prove you were somehow negligent, which could mean you're ignoring unsafe conditions on your property or not cautioning visitors. For example, if you warn a visitor to be careful about a loose step on your porch, you're not being negligent. If you know about the loose board and say nothing, you could be considered negligent. END
 TITLE: What Does Homeowners Liability Insurance Cover? CONTENT: Do You Have Enough Homeowners Liability Insurance?\n--------------------------------------------------\nLiability claims accounted for just 2.8% of all homeowners insurance claims in 2019. As rare as they are, however, they can be costly. In 2019, the average loss from a liability claim was $22,363. Fortunately, protecting yourself is fairly inexpensive. Home liability insurance usually costs about $10 annually for each $100,000 worth of coverage, according to an Insure.com analysis.\nBut how much liability coverage is enough? In a lawsuit, all your assets could be at risk, including your home, retirement accounts, investments and savings, so liability coverage should provide coverage that's at least equivalent to your total net worth.\nMost homeowners insurance starts with $100,000 worth of liability insurance, but you can buy more. You may also want umbrella insurance, which provides additional coverage in increments of $1 million for liability coverage that exceeds the limits of your home or auto insurance policy. You'll generally need a home and auto policy with the same insurer and at least $300,000 in homeowners liability insurance to buy umbrella coverage. An insurance agent can help you determine the amount and type of coverage you need. END
 TITLE: What Does Homeowners Liability Insurance Cover? CONTENT: Protect Your Finances, Protect Your Credit\n------------------------------------------\nWhen accidents happen, home insurance liability coverage can provide peace of mind. So can a good credit score. In most states, insurers review your credit-based insurance score when setting insurance rates. While this isn't the same as your credit score, the two are generally similar, and a poor score can mean you'll pay more for insurance. Checking your credit report regularly and paying bills on time can protect your credit—just like insurance protects your home. END
 TITLE: Credit Card Authorized User: What You Need to Know CONTENT: An authorized user is a person added to a credit card account by the primary cardholder. Anyone can be an authorized user, as long as they meet the card issuer's age requirements; for instance, the primary cardholder may choose to add their child, spouse, partner or close friend as an authorized user.\nThere may be a fee for adding an authorized user. Cards that charge an annual fee might also charge an authorized-user fee, which could be $75 or more.\nWhile an authorized user can make purchases with their card (assuming the cardholder agrees), the liability for making payments lies only with the primary cardholder. The credit card issuer will expect the primary account owner to pay the monthly bill as normal, no matter who made the purchases. END
 TITLE: Credit Card Authorized User: What You Need to Know CONTENT: What Responsibilities Does an Authorized User Have?\n---------------------------------------------------\nOfficially, an authorized user is not expected to pay their portion of the monthly bill directly to the card issuer. But in order to build responsible credit habits—and avoid buying more than they can afford, leaving the account owner with the bill—it's typically a good idea for an authorized user to cover their charges.\nTo keep card balances under control, the authorized user should set up a payment arrangement with the primary cardholder. At the end of each month, for example, the authorized user could transfer an amount equivalent to their purchases to the account owner, or the account owner could send a request on Venmo or another payment app for the charges. Both parties should create accounts on the card issuer's website or mobile app so they can track their purchases. END
 TITLE: Credit Card Authorized User: What You Need to Know CONTENT: How Does Being an Authorized User Affect Your Credit?\n-----------------------------------------------------\nAs an authorized user, the credit card account is reflected on your credit report, which can help you make progress toward building a robust credit history.\nFor example, say you're 18 and you've been added to a parent's credit card as an authorized user. A few times a month, you use the card to pay for gas, and you pay your parent for those charges. Meanwhile, your parent uses the card to make purchases of their own, like a new dishwasher and a Netflix subscription. Your parent pays off the full balance each month.\nIf the credit card company reports authorized user activity to the credit bureaus, all of the credit card's characteristics will be reflected on your credit report, including: its credit limit, the amount of credit being used (known as credit utilization) and payment history. If the card's been managed responsibly, meaning no missed payments or high levels of debt, an authorized user account has the potential to improve your credit scores.\nOn the flip side, if your parent misses payments or uses a big portion of their credit limit, your credit may not improve. The impact of negative information depends on how the credit bureau views that history. Experian, for example, won't include the information on an authorized user's credit report if the primary account owner misses payments, but high credit utilization—like a maxed-out credit card—could wind up damaging the authorized user's credit.\nPlus, your own credit history will factor into how much your credit is affected by authorized-user status. If you're new to credit, being an authorized user could have a bigger positive impact than it would for someone who has an established credit history or damaged credit. END
 TITLE: Credit Card Authorized User: What You Need to Know CONTENT: How to Add or Become an Authorized User on a Credit Card\n--------------------------------------------------------\nTo become an authorized user, ask a trusted family member or friend to add you to their account. Make sure you can rely on the account owner to pay their bill on time every month, and ideally that they pay their whole balance. The lower their utilization, the better; using more than 30% of an account's credit limit at one time can result in credit score damage.\nSome cards let the primary cardholder set spending limits for authorized users. But even if that's not possible, you can informally agree to spend up to a certain amount each month and pay back the cardholder by a certain date. END
 TITLE: Credit Card Authorized User: What You Need to Know CONTENT: How to Remove or Get Removed as an Authorized User on a Credit Card\n-------------------------------------------------------------------\nThe primary account owner can remove an authorized user at any time. It's often possible to do so online, but calling is your best bet if you're unable to find a way to do so on the issuer's website or mobile app. You may also be able to remove yourself by requesting the change directly with the credit card issuer.\nKeep in mind that your credit may be affected after the removal. If it was a card with a long history and you don't have any other accounts of similar age, or you have little credit otherwise, you may see a drop in your credit score. END
 TITLE: Credit Card Authorized User: What You Need to Know CONTENT: Managing Your Credit as an Authorized User\n------------------------------------------\nYou can retrieve your free credit report from all three credit bureaus through AnnualCreditReport.com. You can also get your credit report for free directly through Experian, which also offers access to your free FICO® Score☉ . It's always important to keep an eye on your credit, but it's especially urgent when you're eager to build or improve it as an authorized user. Regularly check your credit report and score so that you can determine if becoming an authorized user is helping your score grow. END
 TITLE: What Are the Cheapest Days of the Week to Fly? CONTENT: Generally, Tuesday, Wednesday and Saturday are the cheapest days to fly, while Fridays and Sundays are pricier, according to travel deal site FareCompare. Leisure travelers tend to fly on the weekends, either starting their vacations on Friday or taking a long weekend Friday to Sunday. Business travelers often return on Fridays and head out on business trips on Sunday evenings. Mid-week flights are cheaper because there's generally less demand from both business and leisure travelers.\nFor example, compare prices for a nonstop, one-way, 7 a.m. Delta flight from New York City's JFK Airport to Los Angeles International Airport in early September. On Sunday, the cheapest fare is $199. Monday, the lowest price drops to $169. On Tuesday, Wednesday and Thursday, the flight costs $119, but on Friday, it jumps to $169. On Saturday, it drops back to $119. END
 TITLE: What Are the Cheapest Days of the Week to Fly? CONTENT: What's the Cheapest Time of Day to Fly?\n---------------------------------------\nEarly morning and late-night flights tend to be cheaper than midday flights. For example, the aforementioned September Delta flight costs $119 at 7 a.m. on a Saturday, but a 1:57 p.m. flight the same day costs $263—more than double the cost of the early morning flight.\nHowever, guidelines about the cheapest days and times to fly aren't foolproof, especially in the current travel environment. For example, a nonstop, one-way 2:40 p.m. Delta flight from New York City's JFK Airport to Los Angeles International Airport in late August costs $150 Monday through Thursday and $169 on Sunday. Friday, which should be a more expensive day, boasts the lowest price of the week ($146), while a 7 a.m. flight (which should be cheaper) costs $199. END
 TITLE: What Are the Cheapest Days of the Week to Fly? CONTENT: How to Save Money on Flights\n----------------------------\nYou may save money shifting your travel time and flying out at dawn on Tuesday, but there are other tactics you can use to save on airfare.\n*   **Do some comparison shopping.** Start with third-party travel price comparison sites like Google Flights, Kayak or Skyscanner. Most let you set price alerts on desired routes or see price forecasts. Before buying, check prices on airline websites. Buying direct may save you money and make it easier to change your itinerary if need be.\n*   **Be flexible with** **dates**. Arriving a few days early or leaving a few days later than planned could save money.\n*   **Avoid popular dates and seasons.** Airfares are higher in the middle of summer, when most people vacation, and right before and after Thanksgiving and Christmas. For instance, Google Flights estimates a one-way, nonstop flight from New York City's JFK airport to Los Angeles International Airport starts at $119 for most of November. The day before Thanksgiving, however, the cheapest price more than doubles to $269; the Sunday after, flights start at $435.\n*   **Consider connecting flights.** Connecting flights are often cheaper than nonstop. Weigh the savings against the inconvenience of the extra travel time, greater odds of losing your luggage and the risk of missing a connecting flight.\n*   **Shop early.** Airfare prediction app Hopper says the best time to get a low fare is 25 to 150 days before traveling. If you're heading to a popular destination—say, Hawaii in July—start searching ASAP.\n*   **Join airline frequent flyer programs.** Members can get fare discounts and earn points toward future travel.\n*   **Get an** **airline rewards credit card**. Look for one with an introductory sign-up bonus that awards points or miles for spending a set amount on the card within a certain time frame. You could earn enough to pay for a ticket. Airline rewards cardholders often get perks like free checked baggage, travel credits, upgrades and preferred boarding. Use Experian CreditMatch™ to get personalized offers for travel rewards cards.\n*   **Watch out for the extras.** Check the fine print of airfare offers for extra charges. Fees for checked baggage or changing your flight can add up. END
 TITLE: What Are the Cheapest Days of the Week to Fly? CONTENT: Travel Smart, Save Money\n------------------------\nCarrying a few credit cards when traveling is a smart move. Using credit cards is easier and safer than carrying cash; if your card is lost or stolen, you can freeze it and quickly get a replacement. Credit cards offering trip or rental car insurance and other travel protections can provide peace of mind too. When traveling internationally, bring a card that doesn't charge foreign transaction fees.\nMost travel rewards credit cards require good or excellent credit, so familiarize yourself with your credit before you apply. You can view your credit report from all three bureaus through AnnualCreditReport.com to check for things like late payments and accounts in collection. You can also get your credit report for free directly through Experian. Importantly, you should also review your FICO® Score☉ to make sure you meet the credit card issuer's minimum requirements. If not, work on improving your credit score while you plan your trip. END
 TITLE: What Is a Cashier’s Check and How Does it Work? CONTENT: How Do Cashier's Checks Work?\n-----------------------------\nA cashier's check works like a personal check but with one key difference: Instead of the check being guaranteed by money in your bank account, it's guaranteed by the bank or credit union that issued the check.\nIn addition to having a bank or credit union guarantee, cashier's checks also typically come with added security features, such as a watermark or signatures from two bank or credit union employees.\nWhen you request a cashier's check, you'll pay the financial institution that issues it, either with cash or a withdrawal from your bank account. The check is then issued to you, with the name of the person or business you're paying in the recipient line. You cannot get a blank cashier's check.\nCashier's checks are often required when you are making large purchases in which the seller needs a high level of certainty that the check won't bounce.\nBecause they're one of the safest forms of payment available, they also tend to clear more quickly than personal checks—usually by the next business day. However, larger checks may be held for longer than that to ensure that they're not fraudulent. END
 TITLE: What Is a Cashier’s Check and How Does it Work? CONTENT: Cashier's Check vs. Certified Check vs. Money Order\n---------------------------------------------------\nWhile some recipients may require a cashier's check to complete a transaction, you may be able to use a certified check or money order instead in some situations.\n### Certified Check\nA certified check is a type of personal check that's drawn from your account rather than the bank's or credit union's reserves. But as added security, the issuing bank or credit union certifies that funds were available for the amount of the check at the time you wrote it.\nThe bank or credit union also verifies that the signature on the check is genuine and sets aside the amount to be used only for that transaction. That action essentially guarantees the check won't bounce.\nA certified check may be a good option when the purchase is large enough that you can't use a money order, and using cash or a personal check would be impractical.\n### Money Order\nA money order is another form of payment that provides more security than a personal check.\nMoney orders are similar to cashier's checks in that they are both prepaid and guaranteed by the issuer of the check instead of the person buying it. With a money order, however, the guarantor is typically a company like Western Union, the U.S. Postal Service or a retailer like Walmart, and not a bank or credit union.\nMoney orders are also typically more convenient to buy versus a cashier's check or certified check due to their wider availability. If you need to send money securely or make a utility or rent payment, a money order may suffice. Money orders typically have a $1,000 limit, however, which means it may not be an option if you need to make a large purchase. END
 TITLE: What Is a Cashier’s Check and How Does it Work? CONTENT: When You May Need a Cashier's Check\n-----------------------------------\nCashier's checks may be required on certain large transactions, such as when you're buying a car, motorcycle, boat or RV from a private party or dealership. It may also be possible to use one to close on a home purchase, though the title company may request a wire transfer instead.\nIf you're making a large purchase like a vehicle or home, ask the seller, dealership or title company about the payment methods they accept. END
 TITLE: What Is a Cashier’s Check and How Does it Work? CONTENT: You can get a cashier's check from any bank or credit union, but you may be required to be an existing customer to buy one. Whether you're heading into a local branch or submitting your request online, here are some steps you'll need to take.\n### 1\\. Have the Money Ready\nBecause the bank or credit union guarantees a cashier's check with its own funds, it'll require you to pay the amount of the check upfront. You can do this with cash or funds from your own checking or savings account. In some cases, you may be required to pay a small fee.\nIf you want to withdraw the funds for a cashier's check, though, you may be required to provide some form of identification.\n### 2\\. Provide the Check Details\nThe bank or credit union prints off the cashier's check, including the recipient's name and the amount of the check. This means you'll need to have all the necessary information ready to give the teller.\n### 3\\. Ask for a Receipt\nOnce your request is completed, the bank will either freeze the amount of the check or deduct it from your account balance, plus any applicable fees. Once you have the check in hand, make sure to also ask for a receipt, which may be helpful if you need to track the check or if it goes missing. END
 TITLE: What Is a Cashier’s Check and How Does it Work? CONTENT: Best Practices When Giving or Receiving a Cashier's Check\n---------------------------------------------------------\nIn general, cashier's checks are among the safest payment methods available. But even with the security features they include, they're not entirely immune to fraud. Here are some best practices to keep in mind.\n### When Receiving\nIf you don't know the person who gave you the check, it's best to avoid using the funds until after the check clears with your bank. This typically only takes a day, but it can take longer depending on the bank and the amount of the check. Avoid buyers who want to give you a cashier's check for more than the purchase price or who offer you checks with misspellings or no security features. These are both signs of common cashier's check scams.\nIf you're receiving the check in the sale of a car or something else that's valuable, consider making the sale contingent upon the check clearing instead of when the buyer hands it to you. If the buyer refuses, you can always look for someone else.\n### When Purchasing\nIf you purchase a cashier's check and lose it before giving it to the recipient, the bank will require you to purchase an indemnity bond before it issues a new one. The bond ensures that you will be liable for the original check instead of the bank if it's found and used for payment. You can also purchase an indemnity bond from select insurance companies, but it's not easy to get one, so safeguard the cashier's check like you would cash. END
 TITLE: What Is a Cashier’s Check and How Does it Work? CONTENT: Know When to Use the Right Payment Method\n-----------------------------------------\nCashier's checks are a safe way to send money or make a payment, but they're not always necessary. Because some banks charge a fee to issue a cashier's check, check with the recipient to see what other options are available. If you can complete the transaction with a more convenient and less expensive option, you may be able to save both time and money.\nIf you do need a cashier's check, though, make sure you have the money and the information required, and treat the check the same as you would cash until you hand it to the recipient. At that point, they're responsible for its safekeeping until they deposit or cash it. END
 TITLE: What Is Consumer Credit? CONTENT: What Are the Main Types of Consumer Credit?\n-------------------------------------------\nThere are two broad ways consumer credit is categorized: how it's paid back (revolving vs. installment), and whether it requires collateral (secured vs. unsecured). The credit types you use—whether it's personal loans, credit cards or mortgages—fit into these categories. It's likely that you've got both installment and revolving credit as well as secured and unsecured credit.\n### Revolving and Installment Credit\nInstallment credit typically refers to loans, such as mortgages, auto loans, personal loans and student loans. With installment credit, you repay what you borrow in fixed payments made each month over a set period of time, or term. The monthly payments, or installments, are based on the amount you borrow plus the interest you owe.\nWith revolving credit, you can borrow money numerous times a month as long as you stay below your credit limit. You'll have to make at least a minimum monthly payment on revolving credit on or before the account's due date. The amount of your monthly payment will depend on how much money you've borrowed and whether you regularly pay off the full balance to avoid interest changes. If you don't pay off your debt immediately, it rolls over—or \"revolves\"—to the next billing period.\nThe most familiar and common type of revolving credit is a credit card. Two other kinds of revolving credit are personal lines of credit and home equity lines of credit (HELOCs).\n### Secured and Unsecured Credit\nSecured debt is backed by collateral—such as a home, car or cash deposit—that a lender can take to cover your debt if you fail to pay back the loan. Types of secured credit include mortgages, auto loans and secured credit cards.\nUnsecured debt does not involve collateral. Credit cards, personal loans and student loans are often unsecured, and are lent primarily on the basis of someone's creditworthiness. When a lender extends unsecured credit, it typically charges a higher interest rate than it would for secured credit. That's because a lender assumes more risk with unsecured credit than secured credit. END
 TITLE: What Is Consumer Credit? CONTENT: Lending Sources for Consumer Credit\n-----------------------------------\nConsumer credit is available from a variety of lending sources, such as:\n*   Banks\n*   Credit unions\n*   Online lenders\n*   Peer-to-peer lending platforms, such as LendingClub and Prosper\n*   Consumer finance companies, whose products include personal loans\n*   Sales finance companies, whose products include auto loans and furniture loans\n*   State and federal agencies (student loans)\n*   Payday lenders\n*   Pawn shops\n*   Family and friends END
 TITLE: What Is Consumer Credit? CONTENT: Advantages of Consumer Credit\n-----------------------------\nConsumer credit could offer a number of advantages, depending on how you use it. They include:\n*   **Building your** **credit history**: If you establish a solid payment history for consumer credit accounts, including credit cards and personal loans, and otherwise handle credit responsibly, consumer credit can be a valuable tool for building your credit.\n*   **Boosting your** **credit score**: A positive history of making payments on credit cards, loans and other types of consumer credit can positively affect your credit score.\n*   **Providing** **perks and rewards****:** Consumer credit, particularly credit cards, can deliver goodies like airline miles, hotel points and cash back rewards.\n*   **Protecting you** **against fraud**: Credit cards provide all sorts of ways to protect yourself against fraud, such as contactless cards, virtual card numbers, card-locking capabilities and little to no cardholder liability for unauthorized purchases.\n*   **Reimbursing** **certain purchases:** Some credit card issuers reimburse you for purchases if you're not satisfied with an item you bought but the merchant won't accept a return. END
 TITLE: What Is Consumer Credit? CONTENT: Disadvantages of Consumer Credit\n--------------------------------\nWhile consumer credit provides advantages, it also provides disadvantages. Some of those are:\n*   Consumer credit can come at a cost, including interest charges and potential fees.\n*   Access to consumer credit might enable you to spend beyond your means.\n*   Missed payments and high debt levels could damage your credit and impact your ability to obtain credit in the future.\n*   Piling up a lot of consumer debt could result in your debt being turned over to a debt collector, who might constantly nag you about paying the debt.\n*   Some predatory lenders might trap you into borrowing money at sky-high interest rates. END
 TITLE: What Is Consumer Credit? CONTENT: The Bottom Line\n---------------\nConsumer credit comes with trade-offs: You balance the freedom and convenience of borrowing money with the costs and potential pitfalls of debt. For instance, a mortgage gives you the freedom to buy a home, but falling behind on mortgage payments could harm your credit history and might even lead to the loss of the home. If you're careful with consumer credit, however, the freedom and convenience can far outweigh the risks.\nTo keep on top of managing your consumer credit, get your free credit report and free credit score from Experian. END
 TITLE: What’s the Most Important Factor of Your Credit Score? CONTENT: Payment History Is the Most Important Factor of Your Credit Score\n-----------------------------------------------------------------\nPayment history accounts for 35% of your FICO® Score. Four other factors that go into your credit score calculation make up the remaining 65%.\nKeep in mind that there are as many as 28 versions of the FICO® Score, meaning you may have one score that's used to determine whether your credit card application is approved, another score for a mortgage application and yet another score for an auto loan application. When calculating these various scores, FICO weighs your payment history on your credit accounts most.\nWhy is payment history more important than the other factors? A lender wants to protect itself from risk. Therefore, it wants to know whether you've made timely payments on current and previous credit accounts. According to FICO, research shows payment history is typically the No. 1 predictor of whether you'll pay your debts on time, thus the heavier emphasis on this factor. END
 TITLE: What’s the Most Important Factor of Your Credit Score? CONTENT: What Bills Affect My Payment History?\n-------------------------------------\nSeveral kinds of bills affect your payment history. These include:\n*   Credit cards, including Mastercard, Visa, American Express and Discover cards\n*   Retail credit cards from stores\n*   Installment loans, such as auto loans and mortgages, that involve making regular payments for a set term\n*   Accounts from finance companies\nIn addition to these accounts, FICO considers bankruptcies and collection accounts as part of payment history. Both can have a significant negative effect on your scores.\nBills from providers of phone, utility, cable TV and streaming services also may affect your payment history. In the past, these accounts would only impact your credit if they were sent to collections as a result of non-payment, in which case they'll stay on your credit report for seven years and negatively affect your score.\nToday, these accounts can actually help improve your credit score, through Experian Boost™† . With Experian Boost, you can allow Experian to securely access your online payment history for phone, utility, cable TV and certain streaming service providers. Then, on-time payments on authorized accounts will start showing up on your Experian credit report, and your FICO® Score may get a boost. END
 TITLE: What’s the Most Important Factor of Your Credit Score? CONTENT: How Long Do Late Payments Stay on Credit Reports?\n-------------------------------------------------\nLate payments can stay on your credit report for up to seven years. They can damage your credit score, but the effect on your score fades over time.\nNot all late payments show up on your payment history, however. If you didn't make a credit card payment by the due date and instead made the payment a day late or a week late, you could be hit with a late fee by the card issuer, but your credit won't be hurt.\nWhy is that? Because credit card issuers won't notify the major credit bureaus (Experian, TransUnion and Equifax) about a late payment until a full billing cycle, or 30 days, has gone by.\nThe situation changes if the payment is more than 30 days late. In this case, the effect on your credit scores depends on how long your account was delinquent before you made a payment. So, a payment that's 60 days late will do more harm than a payment that's more than 30 days late but less harm than a payment that's 90 days late. END
 TITLE: What’s the Most Important Factor of Your Credit Score? CONTENT: How to Improve Your Payment History\n-----------------------------------\nIf you're looking to improve your payment history and potentially bump up your credit score, the simplest advice is to always pay your bills on time and be sure you've budgeted enough money to cover them. Other recommendations include:\n*   **Catch up on past-due payments.** Bringing unpaid bills current will help your score over time.\n*   **Activate** **automatic bill payments****.** If you put your payments on autopilot, you reduce the chance that a bill will go unpaid.\n*   **Set up payment alerts.** Many creditors let you create reminders to inform you when upcoming payments are due.\nOther Factors That Impact Your Credit Score\n-------------------------------------------\nWhile payment history ranks as the top factor in calculating your FICO® Score, it's important to be aware of the four other factors:\n1.  **Amounts owed (30%):** The amount of available revolving credit you're using (also known as your credit utilization ratio) and how much debt you're carrying accounts for 30% of your score. If you're using too much of your available credit, it may be a sign that you're financially strapped and might end up defaulting on your debt. For the best scores, keep your credit usage on each of your individual revolving accounts and overall under 10%.\n2.  **Length of credit history (15%):** Generally, a longer credit history can result in a higher score.\n3.  **Mix of credit types (10%):** Managing different types of credit, such as credit cards, mortgage loans and personal loans, can help your score.\n4.  **New credit (10%):** Opening several new credit accounts over a short period of time may signal risky financial behavior. It also reduces the average age of your accounts, which can lower your score. END
 TITLE: What’s the Most Important Factor of Your Credit Score? CONTENT: The Bottom Line\n---------------\nBecause payment history is the most important factor in your FICO® Score, paying all your bills by the due date can go a long way to helping you build a positive credit history over time. To ensure your payment history and other aspects of your credit are in good shape, check your free credit score from Experian and regularly review your free Experian credit report. END
 TITLE: What Are the FICO<sup>®<\/sup> Score Versions? CONTENT: How Many FICO® Score Versions Are There?\n----------------------------------------\nFICO® reports there are currently 16 distinct versions of the FICO® Score in use by creditors and other authorized users of personal credit data, such as landlords, utility companies and companies performing certain types of pre-employment background checks. These are just a portion of the dozens of FICO® Score versions issued since 1989.\n### Most Widely Used FICO® Score Versions\n**FICO® Score 8:** The company says that FICO® Score 8, introduced in 2009, is currently the most widely used version of the FICO® Score.\n**FICO® Score 9:** FICO® Score 9, which debuted in 2014, is also widely used by lenders, according to FICO®.\n### Newly Released FICO® Score Versions\nThe most recent versions of the FICO® Score were introduced in January 2020. It often takes new score versions several years to gain widespread usage, as lenders typically do extensive testing with them before integrating them into automated approval processes.\n**FICO® Score 10:** FICO® reports that the FICO® Score 10, the company's latest version of its standard FICO® Score software, offers better predictive accuracy than earlier versions of the scoring model.\n**FICO® Score 10T:** Also introduced in January 2020, this version of the scoring software uses the same analytical framework FICO® Score 10, but also makes use of _trended data_, an enhanced method of organizing credit report information. Implemented in recent years by all three national credit bureaus, trended data allows credit scoring software to make predictions based on behavior patterns that cannot be discerned using traditional credit report data. For example, traditional data distinguishes borrowers who pay bills on time each month from those who don't, but trended data can also enable comparisons between bill payers who habitually pay credit card balances in full and those who make only the minimum required payment each month.\n**FICO® Auto Score 10:** Launched in 2020, this version of the FICO® Score model is specially designed to gauge the likelihood a borrower will repay an auto loan. It offers refined assessments of new credit users, who make up a large portion of the first-time car buyer segment. In contrast to the standard FICO® Score 10, which assigns scores on a scale of 300 to 850, Auto Score 10 uses a scale range of 250 to 900.\n**FICO® Bankcard Score 10:** The latest version of the FICO® Bankcard Score 10 adapts the scoring framework of FICO® Score 10 to predict how borrowers may pay their credit card bills. Its refinements include greater accuracy among \"subprime\" borrowers targeted by some credit card issuers. (For purposes of FICO® Bankcard Score 10, the company defines a subprime borrower as one with at least one credit account that's delinquent by 90 days or more, with at least one account in collections, and\/or with a bankruptcy in their credit history.) FICO® Bankcard Score 10 uses a scale range of 250 to 900.\n### FICO® Scores for Credit Card Decisions\nSince 1993, FICO® has introduced multiple versions of its credit scoring software optimized for assessing the creditworthiness of credit card borrowers. All versions of the FICO® Bankcard Score assign scores using a scale range of 250 to 900.\n**FICO® Bankcard Score 9 and FICO® Bankcard Score 8:** Released in 2014 and 2009, respectively, these versions are available from all three national credit bureaus.\n**FICO® Bankcard Score 2 and FICO® Score 3:** Experian provides these versions of the FICO® Score to credit card issuers that prefer them for their approval processes.\n**FICO® Bankcard Score 4**: Card issuers can get this version of the FICO® Bankcard Score from TransUnion.\n**FICO® Bankcard Score 5:** Credit card issuers can obtain this version of the FICO® Bankcard Score from Equifax.\n### FICO® Scores for Mortgage Lending\nKnown as \"classic\" FICO® Scores, the following versions of the FICO® Score are widely used by mortgage lenders.\n**FICO® Score 2:** Mortgage lenders get this version of the FICO® Score from Experian.\n**FICO® Score 4:** Mortgage lenders get this version of the FICO® Score from TransUnion.\n**FICO® Score 5:** Mortgage lenders obtain this version of the FICO® Score from Equifax.\nFor many years, lenders offering mortgages known as conforming loans—loans eligible for purchase by Fannie Mae and Freddie Mac—were required to use these classic FICO® Scores in their loan approval process. In late 2020, the Federal Housing Finance Agency (FHFA)—the regulating agency that oversees Fannie Mae and Freddie Mac—announced that other credit scoring software, including newer versions of the FICO® Score and competing software from VantageScore, will be evaluated for future use with conforming loan applications.\n### FICO® Scores for Auto Lending\n**FICO® Auto Score 9 and FICO® Auto Score 8:** Introduced in 2014 and 2009, respectively, these versions of the FICO® Auto Score are available from all three national credit bureaus.\n**FICO® Auto Score 2:** Experian provides this version of the FICO® Auto Score to auto lenders.\n**FICO® Auto Score 5:** Auto lenders can obtain this version of the FICO® Auto Score from TransUnion.\n**FICO® Auto Score 4:** Auto lenders can secure this version of the FICO® Auto Score from Equifax. END
 TITLE: What Are the FICO<sup>®<\/sup> Score Versions? CONTENT: How Are FICO® Scores Calculated?\n--------------------------------\nEach FICO® Score version calculates scores somewhat differently, and the specific calculations each uses are trade secrets, but FICO® cites five behaviors that influence _all_ FICO® Scores. Focusing on these score factors will tend to bring improvement to all credit scores:\n*   **Payment history**: Paying your bills on time each month—especially debts such as loans and credit cards—promotes credit score improvement more than any other single factor. On the other hand, payments made more than 30 days late can do major damage to your credit scores. Payment history accounts for about 35% of your FICO® Score.\n*   **Amounts owed:** Your total outstanding debt and your credit utilization—the percentage of your total credit card borrowing limit represented by the sum of your outstanding balances—contributes about 30% of your FICO® Score. Keeping your outstanding credit card balances well below 30% of your borrowing limit can help your FICO® Score.\n*   **The age of your credit history:** Lenders like to work with borrowers who have experience managing debt, as long as you avoid major missteps your credit scores tend to increase over time. This factor accounts for about 15% of your FICO® Score.\n*   **Credit mix:** Lenders appreciate borrowers who can responsibly manage multiple types of debt at once, so a blend of active accounts can increase your credit scores. The FICO® Score tends to reward combinations of installment debt (loans with fixed monthly payments and defined repayment terms) and revolving credit (accounts like credit cards, in which you borrow against a credit limit and make payments in variable amounts). Credit mix is responsible for about 10% of your FICO® Score.\n*   **New credit:** When you apply for a loan or credit card, the lender usually performs a credit check known as a hard inquiry, typically requesting a copy of your credit report and, often, a credit score based on that report. Hard inquiries can cause your credit score to drop a few points. And while scores tend to rebound quickly if you keep up with your bills, multiple credit applications for different types of credit over a short time can do cumulative harm to your credit scores. END
 TITLE: What Are the FICO<sup>®<\/sup> Score Versions? CONTENT: Which FICO® Score Should I Check?\n---------------------------------\nBecause lenders use so many different versions of the FICO® Score, and because they can get many of them from any of the three national credit bureaus (whose versions of your credit reports typically differ somewhat at any given time), it's practically impossible to know exactly which score a lender will see when they process your credit application. Fortunately, knowing exactly which score a lender sees is less important than working to make all your scores as high as they can be before you apply for a loan or credit card.\nIn keeping with the status of FICO® Score 8 as the most widely used version of the score currently in use, many free credit scoring services provide access to that version of the FICO® Score. It is a good representation of the scores lenders will likely see when they check your credit. END
 TITLE: What Are the FICO<sup>®<\/sup> Score Versions? CONTENT: Check Your FICO® Score With Experian\n------------------------------------\nWhen you check your FICO® Score for free with Experian, the version you'll see is FICO® Score 8. Experian also offers a paid subscription service that gives you access to FICO® Score calculations based on your credit reports from Experian, TransUnion and Equifax, and to your credit reports from all three national credit bureaus.\nChecking credit scores from all three credit bureaus on a regular basis can give you a good idea of your progress toward building up your credit. It's normal for scores to vary somewhat month to month, but large changes in score can be a sign of credit fraud. If you see a major change in your credit score that doesn't correspond with your credit activity, check your credit reports for signs of unauthorized activity. END
 TITLE: Should I Get a Student Credit Card? CONTENT: Benefits of a Student Credit Card\n---------------------------------\nOpening a student credit card could be a smart move if you use it sparingly and pay the balance off each month. Here are some things that a student credit card can help you do:\n*   **Build credit.** If you don't have any other credit accounts, a student card can help you get started on your credit journey, which can pay off later when it's time to take out a loan, rent an apartment or even get a job. Paying your credit card bill on time can help you establish a positive payment history as you work toward a strong credit score.\n*   **Pay simply and safely.** Credit cards can make online shopping easier and safer. Student cards may come with zero liability protection, which means you won't be held responsible for unauthorized charges if your card number gets into the wrong hands. You may even be able to connect your card to a mobile wallet to make contactless in-store purchases.\n*   **Earn shopping rewards.** Some student cards offer cash back on purchases or when you shop in certain stores.\n*   **Get student perks.** You may be able to qualify for incentives, such as a credit if you maintain a certain GPA or bonus cash back if you pay on time. END
 TITLE: Should I Get a Student Credit Card? CONTENT: Drawbacks of a Student Credit Card\n----------------------------------\nWhile there are many benefits of student credit cards, there are some drawbacks to think about before applying. Here are some disadvantages of student credit cards:\n*   **Low credit limits:** Student cards may have lower credit limits than you might find with a non-student credit card. However, the credit card company may increase your limit after you establish a track record of on-time payments.\n*   **High annual percentage rates (APRs):** Student cards are geared toward students with limited credit. Because of this, they may have higher interest rates than other cards.\n*   **Potential debt trap:** If debt piles up on your card, a student credit card could end up doing more harm than good, especially if you have a limited income. Not being able to make the minimum monthly payments could hurt your score, and late payments can stick around on your credit report for up to seven years. END
 TITLE: Should I Get a Student Credit Card? CONTENT: Do You Have to Be a Student to Get a Student Credit Card?\n---------------------------------------------------------\nWhether or not you have to be a student to get a student credit card depends on the card issuer. In some cases, you have to tell the credit card company what school you attend in the application. There are exceptions, though: Being a student isn't required to apply for the Journey Student Rewards from Capital One.\nBesides the school requirement, you may need to be a U.S citizen or legal resident with a social security number to apply. The minimum age for a student credit card is typically 18 years old. However, if you're under 21, you may need to sign up with a cosigner or show proof of independent income.\nThe credit history needed to qualify for a student credit card can vary as well. In some cases, you may need _some_ credit history to get approved, and payments on student loans could help you in this area.\nIf you have no credit history, you may still have options. For example, Petal is a company that looks beyond credit history alone to approve borrowers for the Petal® 1 \"No Annual Fee\" Visa® Credit Card. END
 TITLE: Should I Get a Student Credit Card? CONTENT: Choose One of the Best Student Credit Cards\n-------------------------------------------\nIf you're interested in applying for a student credit card, the Journey Student Rewards from Capital One and Petal® 1 \"No Annual Fee\" Visa® Credit Card are two excellent choices—and neither one has an annual fee.\nThe Journey Student Rewards from Capital One, for example, offers 1% cash back on all purchases, but that bumps up to 1.25% cash back if you pay your bill on time for that month. New cardholders can also earn a $5 statement credit per month (with a 12-month limit) for select streaming services when you pay your credit card bill on time; restrictions apply.\nIf you're not sure which student credit card would be the best for your situation, you could use Experian CreditMatch™ to get personalized student credit card offers. END
 TITLE: Should I Get a Student Credit Card? CONTENT: Next Steps\n----------\nBefore applying for a student credit card to build credit, a good first step is checking to see what's currently on your credit report. You can get your Experian credit report and FICO® Score☉ for free when you sign up for Experian CreditWorks℠.\nGot approved for your first student card? Congratulations! Now it's time to use your card to build credit. Maintaining a low balance and diligently paying the bill on time each month can help you grow your credit score in college and beyond—and that can help you reach your future financial goals. END
 TITLE: Can My Credit Score Affect Renting? CONTENT: Will My Credit Score Affect My Ability to Rent?\n-----------------------------------------------\nWhen a landlord runs a credit check on a potential renter, they likely won't zero in on the person's credit score. In fact, a landlord might not care at all about the credit score. Instead, the landlord might concentrate more on the potential renter's overall credit history, particularly their record of on-time payments.\nA landlord is trying to assess the likelihood that you'll pay your rent on time every month, and reviewing your track record of managing your debts can help them with that. A credit history free of negative marks could tip the landlord's decision to approve you, while lackluster credit may cause the landlord to ask for other assurances—such as a higher security deposit.\nThe commonly used FICO® Score☉ ranks payment history as the most important factor in calculating your score, assigning it a weight of 35%. The other factors are how much debt you carry (30%), the length of your credit history (15%), new credit (10%) and the types of credit accounts in your credit report (10%). END
 TITLE: Can My Credit Score Affect Renting? CONTENT: What Credit Score Do I Need to Rent an Apartment?\n-------------------------------------------------\nThere's no specific FICO® Score that will determine whether or not you can move into a new apartment.\nWhile your FICO® Score may not be the No. 1 factor in deciding whether you'll be approved for an apartment lease, a higher score may give you an advantage. That's especially true in a competitive rental market, where higher-rent apartments may demand a higher credit score.\nFICO® Scores range from 300 to 850, and a FICO® Score above 670 indicates good credit. However, a FICO® Score below 670 doesn't necessarily mean a landlord will reject your rental application outright. A landlord may scrutinize your application more closely if your FICO® Score is low, but the score that gets you in the door can depend on the type of apartment you want to rent, the rent you'll be paying, the state of the local rental market and your income. Your landlord may not even consider your credit at all when reviewing your application. FICO® Scores don't include income as a factor, nor is your income included on your credit report.\nBefore you submit a rental application, you can get your free Experian credit report to help you understand where your credit stands. To get your credit move-in ready, review your credit report and take the time to address any issues you find, such as high credit card balances. END
 TITLE: Can My Credit Score Affect Renting? CONTENT: How to Pass a Rental Credit Check\n---------------------------------\nA landlord might take a close look at the information in your credit report when deciding whether to approve your application. Plenty of factors typically will be examined. They include:\n*   Ratio of debt to income (you'll likely be asked to report your income on your rental application)\n*   Bankruptcies\n*   Foreclosures\n*   Defaults on loans\n*   Delinquent accounts\n*   Charge-offs, meaning a creditor has written off your debt as unpaid and has closed your account\n*   Auto repossessions\nKeep in mind that items like foreclosures or a bankruptcy might be more important to a landlord than hefty credit card balances or a couple of late credit card payments. Also, you should know that a landlord typically can deny your rental application if you refuse to authorize credit and background checks.\nIt's worth noting that evictions and your history of paying rent don't automatically appear on your credit report. That's because landlords and property management companies don't always report your payment activity to the three major credit reporting bureaus—Experian, TransUnion and Equifax. They also won't submit information to the credit bureaus about evictions, bounced checks, broken leases or property damage. Unpaid rent may show up on your credit report if the debt wound up going to collections, however.\nYour history as a renter can also show up in your rental history report, which is a separate report landlords can request through services like Experian RentBureau. Rental history reports show things like evictions, late payments you've made in the past, broken leases and bad checks.\nTo help ensure you pass a landlord credit check:\n*   Pay all of your bills, including your rent, on time.\n*   Pay off credit cards and loans.\n*   Dispute information on your credit report that you believe to be incorrect, such as accounts reported as late that your records show to be current.\n*   Keep spending well below your credit limits to protect your credit utilization ratio.\n*   Consider signing up for Experian Boost™† , which reports payments on things like cellphone service, utilities and certain streaming services to credit bureaus.\nIf you have a poor credit score, you can improve your odds of your rental application being approved by:\n*   Explaining your circumstances. A landlord may give you some leeway if, for instance, your credit was damaged because of a divorce or you lost a job but now have a new one and are now getting back on your feet financially.\n*   Getting a cosigner for your lease who's got good credit.\n*   Providing concrete proof of your income, such as recent pay stubs. END
 TITLE: Can My Credit Score Affect Renting? CONTENT: The Bottom Line\n---------------\nYour credit score may affect your ability to rent a place, so make sure you know what it is and work toward a good score. To track the condition of your credit, obtain your free Experian credit report and free Experian credit score. END
 TITLE: Is It Worth Paying an Annual Fee for a Credit Card? CONTENT: How Much Do Credit Card Annual Fees Cost?\n-----------------------------------------\nThe cost of a credit card's annual fee can vary greatly from one card to the next. Some credit cards have no annual fee, while others may charge $39 to $95 per year. Credit cards that come with premium benefits and travel perks may carry a much higher price tag of $250, $550 or even $995 per year.\nCards with higher annual fees may offer extra bells and whistles like access to an exclusive airport lounge, hotel upgrades and introductory rewards bonuses. In essence, you get what you pay for. END
 TITLE: Is It Worth Paying an Annual Fee for a Credit Card? CONTENT: Why Do Credit Card Issuers Charge Annual Fees?\n----------------------------------------------\nCompanies may charge an annual fee for certain cards that provide generous cardholder benefits, like travel credits, exclusive rewards opportunities or free checked luggage on flights. You generally pay more per year for the cards that come with the most perks.\nAnother time a credit card may have an annual fee is if it's geared to borrowers with fair or poor credit. Interest rates for these types of cards may also be high. The good news is that after building credit with the card you may be able to qualify for a card that has a lower fee (or none at all) and a better interest rate. END
 TITLE: Is It Worth Paying an Annual Fee for a Credit Card? CONTENT: When You May Want to Pay an Annual Fee\n--------------------------------------\nBefore automatically ruling out a credit card that has an annual fee, it's worth doing some math to see if you can benefit from the card despite the fee. If the value you get from the card's rewards and other benefits exceeds the annual cost, paying the fee could be worthwhile. Here are some scenarios in which it could make sense to pay an annual fee:\n### Lucrative Rewards\nIf a card has a high-value rewards offer or introductory bonus, you may earn enough to cover the fee and still see some upside.\nFor example, the Credit One Bank American Express® Credit Card has a $95 annual fee, but there's an opportunity to earn even more in cash back. Cardholders can earn 5% cash back on the first $5,000 spent on gas, groceries, cable, internet, cellphone service and satellite TV each year. That's $250 in potential cash back for that category, plus you can earn an extra 1% cash back on everything else. If you shop heavily at the grocery store and commute by car daily for work, you may easily earn enough cash back to cover the card's $95 fee and still make a profit.\nAnother example, the Chase Sapphire Preferred® Card, allows you to earn a generous intro bonus of 100,000 bonus points if you spend $4,000 in the first 3 months you have the card. That's worth $1,250 when redeemed for travel through Chase Ultimate Rewards, which is more than enough value to cover the card's $95 annual fee.\n### Money-Saving Perks\nA card with an annual fee might offer savings opportunities in the form of its benefits. At first, you may balk at the $550 annual fee you'd pay with the Chase Sapphire Reserve®, but it's one of the most popular travel credit cards for a reason.\nFirst off, the credit card offers you a $300 travel credit each year. Plus, you can get complimentary access to VIP airport lounges (through Priority Pass Select after enrollment), 1:1 point transfers to other loyalty programs and a credit every four years or 4.5 years to pay for Global Entry or TSA Precheck.\nAfter you earn the $300 travel credit, you can earn 5 points per dollar spent on flights and 10 points per dollar on hotels and car rental bookings through Chase Ultimate Rewards. In addition, the card offers another 3 points per dollar on other travel bookings and 3 points per dollar on dining, including takeout. There may be lots of opportunities to receive credits and earn rewards to offset your annual costs.\n### Help Building Credit\nAs mentioned, credit cards geared toward borrowers with limited credit or poor credit may also have annual fees. While paying an annual fee may not be ideal, opening up a card with an annual fee and using it to build credit could have long-term advantages.\nIf you keep credit usage low and make your card payment on time each month, the card could help you build credit so you're better positioned to apply for loans and credit cards in the future.\nBefore opening up a credit card, be sure to compare rates and fees to see where you can get the best deal. Then after opening up the card, try to pay off the entire balance each month because it'll help you avoid interest. Otherwise, paying an annual fee on top of interest charges each month can get pretty expensive. END
 TITLE: Is It Worth Paying an Annual Fee for a Credit Card? CONTENT: How to Get Your Credit Card's Annual Fee Waived\n-----------------------------------------------\nIn some cases, credit card companies will waive the annual fee for the first year as a new cardholder incentive. If you're an existing cardmember and an intro offer isn't on the table, you may be able to call your card issuer to request a one-time waiver. END
 TITLE: Is It Worth Paying an Annual Fee for a Credit Card? CONTENT: Compare Cards Before Applying\n-----------------------------\nWhether paying an annual fee for a card makes sense for your budget depends on your spending habits and the benefits the card provides. If you rarely travel and barely use a credit card, choosing one with an annual fee may not be worthwhile since you may not see enough benefit to justify the fee.\nOn the other hand, if you spend heavily in a certain shopping category and a credit card rewards you for it, paying an annual fee for premium perks and rewards opportunities could work out well for you.\nBefore choosing a card, it's always a good idea to compare rewards programs to land on the right card for your situation. If you're looking for a good place to start shopping around, you can get personalized credit card offers that won't affect your credit score using Experian CreditMatch™. END
 TITLE: How to Fight an Eviction CONTENT: Know Your Rights\n----------------\nEviction laws vary widely from state to state and even county to county, so as the national moratorium ends, it's important to know what other laws protect you. For instance, if you live in a multifamily property with a mortgage through Fannie Mae or Freddie Mac, you cannot be evicted until at least September 30, 2021. If you're an active-duty servicemember or live in federally funded housing, you may have additional rights.\nMany states, counties and cities have their own eviction moratoriums. You can find lists of state moratoriums online, but since the situation changes daily, the best place to get up-to-date information is your state, city or county government website.\nWhether or not there's a moratorium in place where you live, be sure you understand your rights as a tenant. Review your lease and any other written agreements with your landlord. The U.S. Department of Housing and Urban Development (HUD) has a directory of tenant rights by state. END
 TITLE: How to Fight an Eviction CONTENT: Negotiate With Your Landlord\n----------------------------\nLaws vary depending on where you live, but typically, landlords must give tenants a written notice of eviction and allow time to respond; after that time period passes, they may file a lawsuit. Until a lawsuit is filed, you can still negotiate with your landlord to come up with a more realistic payment plan for back rent and future rent.\nDepending on your situation, options your landlord may agree to include adjusting rent due dates to better fit your income; splitting rent into smaller payments throughout the month; waiving late fees, interest and penalties as long as you pay some amount of rent; reducing rent temporarily; or setting up a repayment plan to repay back rent over time in the future. Be sure to get any agreement with your landlord in writing. END
 TITLE: How to Fight an Eviction CONTENT: See if You Qualify for Rental or Financial Assistance\n-----------------------------------------------------\nThe U.S. Treasury Department is making it easier for state and local governments to distribute emergency rental assistance (ERA) to households whose finances have been affected by the pandemic. Search for emergency rental assistance in your area through the National Low Income Housing Coalition, 211.org, FindHelp.org, Benefits.gov or the Consumer Financial Protection Bureau.\nYou can also seek other types of assistance, such as that offered by local religious groups or food banks. Contact your local utility provider to see if they're offering relief or look for assistance with utility bills. Also explore options for credit card and debt relief from your lenders. Put the money you'd normally spend on those expenses toward the rent. END
 TITLE: How to Fight an Eviction CONTENT: Seek Free Legal Assistance\n--------------------------\nIf you can't pay your rent and your landlord files an eviction lawsuit, you'll need to file a response with the court within a certain time frame, either on your own or with the help of an attorney. Contact the court to find out how to do this. You can find free legal help in your area through the American Bar Association, the Legal Service Corp. and LawHelp.org. END
 TITLE: How to Fight an Eviction CONTENT: Increase Your Savings and Income\n--------------------------------\nIf you have time to gather more money to pay rent and stay in your home, consider the following actions:\n*   **Save as much money as possible.** If your landlord hasn't started eviction proceedings but you're worried about making rent in the near future, revamp your budget to cut out all the fat, looking for ways to save money you can put toward housing.\n*   **Take in a roommate.** A roommate can help share the rent burden, but read your rental agreement and get your landlord's blessing first. Some landlords will raise the rent or want an extra security deposit for adding a roommate to a lease.\n*   **Find a side gig.** Look for a part-time job to earn extra money or consider selling items on Amazon, eBay, Poshmark, Facebook Marketplace or other sites. There are many jobs you can do online to bring in more money for the rent.\n*   **Look for cheaper housing.** If you think you'll have trouble paying the rent for the foreseeable future, now may be the time to find more affordable housing. For example, you could rent a room in someone's house, move in with a roommate to pay less rent, or move in with family or friends. END
 TITLE: How to Fight an Eviction CONTENT: Pay Your Rent with a Credit Card\n--------------------------------\nMany landlords won't accept rent payment by credit card. Even if yours does, the fees and interest can add up, and the charges could increase your credit utilization ratio, potentially hurting your credit score. However, if you expect funds from a new job or rental assistance to kick in soon, paying rent with a credit card could tide you over until your bank account is back in shape. END
 TITLE: How to Fight an Eviction CONTENT: Have a Backup Plan\n------------------\nWhile you work to prevent eviction, be prepared in case the worst should happen. Once a court rules against you, you may be forced out of your rental in as little as 24 hours. Look for temporary shelter with friends or relatives, or visit JustShelter.org and HUD for resources to find housing and other assistance. END
 TITLE: How to Fight an Eviction CONTENT: Protect Yourself and Your Credit\n--------------------------------\nEven though evictions don't appear in your credit history, they can still damage your credit and finances. Landlords may sell your account to a collection agency; if the collection account is reported to the credit bureaus, it will stay on your credit report for seven years and have a negative impact on your credit score.\nIf a landlord sues you for unpaid rent and wins a judgment, the court could garnish your wages. Judgments don't appear on credit reports, but they do appear in the public record and may show up in other types of consumer reports. Evictions are also part of your rental history report, which landlords may review when considering your rental application.\nMany Americans are still struggling financially due to the pandemic. If you're one of them, getting credit counseling can help you pay down debt and get your finances back on track. Monitoring your credit regularly can help you understand what factors may be affecting your credit score and how you can improve it going forward. END
 TITLE: What to Consider When Choosing a New Credit Card CONTENT: 1\\. Credit Score Requirements\n-----------------------------\nCredit card issuers don't necessarily have (or share) a minimum credit score requirement for each of their cards, but they may offer some general guidance. Certain cards may primarily be intended for people who fall within certain credit score ranges—whether that's poor or very good or somewhere in between.\nThe Experian CreditMatch™ credit card marketplace can show you recommended FICO® Score☉ ratings for each card. You can get your credit score for free from Experian to see where your FICO® Score stands and then apply for cards that align with your score. Or you may want to improve your score first, and then apply after it increases. Doing so can increase your chances of a successful application. END
 TITLE: What to Consider When Choosing a New Credit Card CONTENT: 2\\. How You Plan to Use the Card\n--------------------------------\nYou'll also want to consider how you plan on using your new credit card.\nFor example, if you're going to use one card for everyday spending, a flat-rate rewards card might make the most sense. If you're willing to put in a little bit of work to make sure you're maximizing your rewards, you could try to get several rewards cards that offer complementary bonus categories. For example, you could get a grocery card for your grocery runs, a travel card for when you're getting away and a flat-rate rewards card for everything else.\nIf you plan on only using the card during emergencies, you might look for a card with a high credit limit, low interest rate and no annual fee.\nOr perhaps you have a specific upcoming purchase in mind or want to consolidate and pay down debt. A card with an introductory 0% annual percentage rate (APR) offer on purchases or balance transfers might make sense. END
 TITLE: What to Consider When Choosing a New Credit Card CONTENT: 3\\. Fees\n--------\nCredit card fees can impact your cost for using the card even if you never pay interest. Some of the most important fees to consider are:\n*   **Annual fee:** An annual fee isn't necessarily a bad thing, but it can definitely impact the value you get from a credit card. There are plenty of good options that don't require an annual fee, including some of the best credit cards for beginners, such as the Capital One Platinum Credit Card. When looking at a card that has an annual fee, consider the benefits that come with the card. Premium cards like the Chase Sapphire Reserve® may have a high annual fee, but they can also offer benefits that more than outweigh the cost. If you think you'll end up taking full advantage of the card's benefits, it may well be worth paying the annual fee.\n*   **Balance transfer fee:** Balance transfer fees are often around 3% to 5% and can apply to every balance transfer. You may be able to save money by finding a card that charges a lower balance transfer fee.\n*   **Late fee:** Card issuers may charge a late payment fee if you don't make the minimum payment by the due date. There are a few cards that don't have late payment fees. But you can also avoid accidentally getting charged the fee by setting up autopay for at least the minimum payment amount.\n*   **Foreign transaction fee:** A foreign transaction fee may apply when making purchases outside the U.S. or shopping online if the purchase isn't in U.S. dollars. It's often around 3%, but there are also many credit cards, including many travel cards, that don't have this fee. END
 TITLE: What to Consider When Choosing a New Credit Card CONTENT: 4\\. Annual Percentage Rates (APRs)\n----------------------------------\nA credit card's APR determines how much interest accrues when you carry a balance.\nYou generally won't pay any interest on purchases if you pay off the card's entire balance each month. A card with a potentially low interest rate could be best if you intend to occasionally revolve a balance. For reference, the average interest rate on credit cards is around 16%.\nIf you plan on using the card for a large expense that you'll pay off over time, look for a card that has an intro 0% APR offer. Similarly, balance transfer cards can offer an intro 0% APR on balance transfers during a limited period.\nThe Wells Fargo Platinum card offers an 18-month promotional 0% APR period on purchases and qualifying balance transfers. However, with all intro APR offers, the card's standard variable APR applies to remaining balances once the promotional period ends—that's a 16.49% to 24.49% variable APR with the Wells Fargo Platinum card. Balance transfers made within 120 days of account opening qualify for the card's 0% APR intro offer. You'll pay a 3% balance transfer fee ($5 minimum) on balance transfers made within the first 120 days, and a 5% fee on transfers made thereafter ($5 minimum).\nAlso, credit card cash advances may carry a separate (often higher) APR that applies even if you have a 0% APR offer for purchases and balance transfers. END
 TITLE: What to Consider When Choosing a New Credit Card CONTENT: 5\\. Rewards\n-----------\nRewards credit cards can offer you cash back, points or miles on every eligible purchase. Generally, a rewards card will use one of three earnings styles:\n*   Flat-rate rewards cards give you the same rewards on every purchase that can earn rewards.\n*   Tiered-rate rewards cards earn bonus rewards on select purchase categories.\n*   Rotating rewards cards have rotating bonus categories.\nIn addition to the earnings style, consider the type of rewards you want to earn.\n*   Cash back may be the easiest to use as you can often redeem the rewards for statement credits or a check, or transfer them to an eligible bank account.\n*   Cards that earn rewards points can be very flexible and potentially offer more value.\n*   Co-branded cards that give you airline miles, hotel points or points in other loyalty programs can sometimes be the best fit if you're already a fan of the brand.\nHaving a strategy for earning and redeeming miles is a fun and fruitful hobby for some. Others prefer the simplicity of cash back. END
 TITLE: What to Consider When Choosing a New Credit Card CONTENT: 6\\. Credit Limit\n----------------\nYour card's credit limit dictates how high your balance can go before you can no longer make additional purchases. Your initial credit limit may depend on your credit history, score and relationship with the issuer, and you generally won't know your exact credit limit until after you apply and get approved.\nHowever, you can review some cards' minimum credit limit. For example, the Petal® 1 \"No Annual Fee\" Visa® Credit Card has a $500 minimum limit. Other cards may also list their minimum credit limit in their terms and conditions.\nSome cards have different minimums depending on the version of the card you're approved for. With the Chase Freedom Unlimited®, for example, you may get a Visa Signature card with a $5,000 minimum or a Visa Platinum card with a $500 minimum.\nThere are also cards that may automatically review your account for a credit limit increase. With the Capital One Platinum Credit Card, you could be automatically considered for a credit limit increase after as little as six months.\nYou can also ask for a credit limit increase on one of your open cards. But the request could result in a hard inquiry, which may slightly hurt your credit scores. Focusing on improving your credit, paying your bill on time and updating the card issuer with your new income when it increases could also lead the issuer to increase your credit limit without a request. END
 TITLE: What to Consider When Choosing a New Credit Card CONTENT: Compare Personalized Credit Card Offers\n---------------------------------------\nIf you want to quickly narrow down the list of available cards, you can use Experian CreditMatch™ to review cards from our partners based on their credit score requirements and main attributes. After logging in to an Experian account, you can also choose several cards to create a custom side-by-side comparison before applying. END
 TITLE: What to Do if Your Personal Credit Line Is Closed CONTENT: Similar to a home equity line of credit (HELOC), a personal line of credit lets you borrow money from a pool of available funds at any time during what's known as the \"draw period,\" which lasts several years. You pay interest only on the cash you actually borrow, not your entire borrowing limit. By contrast, a personal loan provides a lump sum of cash that you begin repaying (and paying interest on) right away.\nYou can use money from a personal line of credit for many purposes, such as consolidation of high-interest credit card debt, a home improvement project or a vacation. Once you've paid back any cash you've borrowed, the full amount of money authorized under a personal line of credit once again becomes available.Personal lines of credit are frequently used to fund big-ticket purchases, while people often turn to credit cards for smaller purchases. Interest rates on personal lines of credit tend to be lower than interest rates on credit cards, especially for borrowers with good credit scores. END
 TITLE: What to Do if Your Personal Credit Line Is Closed CONTENT: How Does Closure of a Personal Line of Credit Affect Your Credit Score?\n-----------------------------------------------------------------------\nSimilar to a credit card account, a personal line of credit is a form of revolving credit. In both cases, a lender enables you to borrow against an approved credit limit and pay off the debt over time. Both credit card accounts and personal lines of credit also affect your credit scores, based on how you handle these accounts.\nThe FICO® Score☉ and VantageScore® credit scoring models place a lot of emphasis on how you manage your revolving credit. In particular, they keep a close eye on how much of your available credit you're using (your credit utilization). As your credit utilization climbs above 30%, your credit score could suffer. When a personal line of credit is closed, that chunk of available credit is lost, which could cause your overall credit utilization ratio to go up.\nIn addition, closure of a personal line of credit decreases the number of accounts you have and could reduce the average age of your accounts. Both of these factors can affect your credit score, but not to the same extent that a high credit utilization ratio can.\nIf you get enough notice that a lender plans to close your personal line of credit, consider reducing the balances on your other debts to potentially cushion any blow to your credit score. END
 TITLE: What to Do if Your Personal Credit Line Is Closed CONTENT: Options When a Personal Line of Credit Is Closed\n------------------------------------------------\nFortunately, closure of a personal line of credit doesn't dry up the availability of credit. If a bank has shut down your personal line of credit, take a look at:\n*   **Getting your credit in shape:** If you're concerned about how an account closure might affect your credit score—and your ability to take out a personal loan, auto loan or mortgage, for instance—you might want to work on boosting your score. One way to do this is by decreasing the balances on your other credit accounts while not taking on more debt. This can lead to a lower credit utilization ratio, which in turn can help your credit score and can open up more borrowing opportunities.\n*   **Finding another lender:** If you've got a good credit score, a lender may be eager to let you open a personal line of credit. This could let you still enjoy the borrowing flexibility you're seeking without much disruption. Another flexible option may be the Upgrade Visa® Card with Cash Rewards, which provides access to credit you repay in fixed installments.\n*   **Applying for a personal loan:** A personal loan may be able to fill the borrowing gap left by the closure of a personal line of credit. Keep in mind, though, that unlike a personal line of credit, a personal loan provides a fixed amount of money upfront, starts charging interest right away and requires fixed payments over a fixed period of time.\n*   **Obtaining a new credit card:** A credit card also may be a viable alternative to a personal loan of credit. Remember that credit cards typically come with higher interest rates than you'd get from a personal line of credit, but 0% intro APR offers are available. As you're shopping for a credit card, be sure to check out Experian CreditMatch™, which can pair you with a credit card suitable for your needs. END
 TITLE: What to Do if Your Personal Credit Line Is Closed CONTENT: The Bottom Line\n---------------\nWhatever option you pick if a personal line of credit is closed, stay on top of your credit by signing up for your free credit score, free credit report and free credit monitoring from Experian. Understanding your credit before you make any major decisions can help you narrow down your options and plan ahead in a smarter way. END
 TITLE: Can You Use One Credit Card to Pay Off Another? CONTENT: There are two ways you can use one credit card to pay off another one, including a balance transfer and a cash advance.\n### Balance Transfer\nBalance transfers involve using a credit card, typically from another card issuer, to pay off an existing credit card balance and effectively transfer the balance from the original card to the new one.\nMany credit cards offer an introductory annual percentage rate (APR) on balance transfers—typically 0%, but sometimes the rate is just lower than the standard rate—for a set period, which can range from six to 20 months, depending on the card. Other cards may send out balance transfer checks to existing cardholders, so you don't necessarily have to apply for a new card to get this benefit.\nThis feature makes it easy to pay down a balance and save on interest charges in the process. Once the promotional period ends, though, the remaining balance will typically be assessed interest based on the card's regular APR until it's paid in full.\nIf you have a card with a 0% APR balance transfer promotion, paying off your credit card balance before the promo period ends can be an excellent way to save money and achieve your goal of paying off the debt more quickly.\nHowever, keep in mind that balance transfers typically come with a fee of 3% to 5% of the transferred balance. So if you transfer $5,000, you can expect to have between $150 and $250 added to your balance. That fee can still be worth it if the interest savings exceed the upfront charge, but it's important to run the numbers.\n### Cash Advance\nWhile you can technically use a cash advance to pay off another credit card, it's not advisable. Cash advances typically come with an upfront fee, and it's generally higher than what you'd be charged for doing a balance transfer of the same amount.\nYou'll also never get an introductory 0% APR on a cash advance. What's more, the interest you get charged—which often comes at a higher rate than the card's regular purchase and balance transfer APR—starts accruing immediately.\nIn other words, a cash advance could wind up costing you more money than if you were to keep the balance on the original card. END
 TITLE: Can You Use One Credit Card to Pay Off Another? CONTENT: You Can't Pay Your Monthly Bill With Another Credit Card\n--------------------------------------------------------\nAlthough you can request a balance transfer from one card to another, you can't make your monthly payment on one card with a different one.\nOf course, you could technically request a balance transfer every month, but the fees and hassle of submitting a request every month likely wouldn't be worth it. END
 TITLE: Can You Use One Credit Card to Pay Off Another? CONTENT: What to Do if You Can't Pay Your Credit Card Bill\n-------------------------------------------------\nIf you're having a hard time keeping up with your minimum monthly payment, requesting a balance transfer likely won't solve your problem because you'll eventually need to make a payment on the new card.\nThere are, however, other potential solutions:\n*   **Contact your card issuer****.** Many credit card companies offer some form of relief to borrowers who can't afford their payments. This assistance may come in the form of forbearance, a reduced interest rate or a modified payment plan. Just keep in mind that this relief may be temporary, so it's typically not a good long-term solution.\n*   **Work with a** **credit counselor****.** If you've tried working with your credit card issuer and it hasn't helped, consider reaching out to a nonprofit credit counseling agency. A credit counselor can help you evaluate your situation and determine some next steps. In some cases, that may involve a debt management plan. For a modest upfront and ongoing fee, the agency can negotiate with your creditors to potentially reduce your monthly payment or interest rate and get you on a payment plan that helps you avoid defaulting.\n*   **Offer to** **settle your debt****.** If your situation is dire enough that a debt management plan might not help, you may consider offering to settle for less than what you owe. Because this option can damage your credit score significantly, it's best considered only if you're already far behind on your payments.\n*   **File** **bankruptcy****.** If you've pursued all other avenues and can't find a solution, filing bankruptcy may be the only option that's left. Due to the devastating effect it'll have on your credit and finances, however, it's important to consider bankruptcy only as a last resort. In the right circumstances, this option could help you get back on your feet. END
 TITLE: Can You Use One Credit Card to Pay Off Another? CONTENT: Check Your Credit Before Applying for a New Credit Card\n-------------------------------------------------------\nIf you're thinking about applying for a balance transfer credit card to get an introductory 0% APR, it's important to note that these cards typically require good or excellent credit to get approved.\nAccording to credit scoring company FICO, that typically means a credit score of 670 or above. Check your credit score to get an idea of where you stand, and if your credit history needs some work, take the time to improve your credit before you apply. Also, consider using Experian CreditMatch™ to get personalized card offers based on your credit profile. END
 TITLE: Still Waiting on Your Tax Refund? Here’s What to Do CONTENT: Why Is Your Refund So Late?\n---------------------------\nThe IRS typically processes tax returns and issues refunds within 21 days of receipt. However, this tax season is different. Working under COVID-19 restrictions slowed productivity at the IRS, causing a backlog. At the same time, massive new demands have been placed on the agency: Three rounds of stimulus payments since the pandemic began, new monthly Child Tax Credit payments, an extra round of refunds for Recovery Rebate Credits and a raft of new tax laws and COVID-related benefits that made tax returns more complicated for the 2020 tax year. Add in the limitations and age of many IRS systems, and you have a perfect storm of delay.\nAccording to the IRS, your tax refund may also take longer to process if your tax return has any of the following issues:\n*   Errors\n*   Missing information\n*   A need for additional review\n*   Possible identity theft\n*   A claim for an Earned Income Tax Credit or an Additional Child Tax Credit\n*   Form 8379, Injured Spouse Allocation, which can take up to 14 weeks to process\nHow Can You Find Out Your Refund Status?\n----------------------------------------\nThe most efficient way to track your refund is through the IRS' Where's My Refund? tool or mobile IRS2Go app. Either one will show your tax return's status 24 hours after it's received. Your status will indicate one of the following:\n*   **Received** means your return is being processed.\n*   **Approved** indicates your return has been accepted and your refund amount is approved.\n*   **Sent** confirms that your refund is being direct-deposited into your bank account or mailed to you as a check.\nIf it's been more than 21 days since you e-filed your return—or six weeks since you mailed a paper return—you can also call the IRS at 800-829-1040 for a status update. Be forewarned: Phone lines are busy and capacity is limited. Only 3% of callers to the IRS \"1040\" helpline reached live help during the regular tax season.\nIs there a simple way to speed up your refund payment? Although there is a process for requesting an expedited refund to cover hardship expenses (more in a moment), since most delays appear to be normal at this point, there may not be much you can do other than track your refund to make sure it isn't lost in transit.\nE-filing your taxes (if you haven't filed them already) can help you eliminate the lengthy delays taking place as IRS workers manually input information from paper returns. And selecting direct deposit instead of a paper check lets you skip mailing delays. If your refund check is more than 28 days past the date the IRS mailed it, you can file an online claim for a replacement check. END
 TITLE: Still Waiting on Your Tax Refund? Here’s What to Do CONTENT: How to Pay Bills While You Wait for Your IRS Refund\n---------------------------------------------------\nWaiting for a tax refund is never fun, but if you've weathered economic challenges during the pandemic, you may need your refund money to make ends meet. If you need help covering expenses while you're waiting, here are a few ideas for bridging the gap:\n*   **Make a hardship request to the IRS.** If your refund is being held up by a temporary backlog in processing, you can ask the IRS to expedite all or part of your refund to cover hardship expenses by calling (800) 829-1040 and explaining your situation. This is for serious hardships only; examples include eviction notices, utility shut offs and inability to pay for medication. You can only request enough money to cover your emergency hardship, and receiving this partial payment may delay the remainder of your payment.\n*   **Put your budget into survival mode.** Cut discretionary spending, make minimum card payments and postpone major purchases.\n*   **Take advantage of 0% intro APR credit card offers.** If you have good credit and are confident you'll manage a new account well, you may be able to find a 0% intro APR credit card offer on new purchases or balance transfers. Your current card issuers may also offer 0% APR balance transfers you can use to buy yourself some time on other accounts—and save on interest while you're waiting for your refund.\n*   **Get a personal loan.** Although it's wise to resist running up debt while you're waiting for critical funds, a personal loan could help you get your money now and pay it back later. Lenders that fund their loans quickly may be able to provide the emergency cash you need. To get the right loan for you:\n    *   Leverage your good credit score to get the lowest possible APR.\n    *   Try to keep your loan to the amount of your refund minus interest, so when your refund arrives, you can pay the whole loan off. Make sure your loan doesn't have any penalties for paying it off early.\n    *   Stay clear of payday lenders, title lenders and other high-interest sources of fast cash. Sky-high interest could leave you owing far more than your refund amount.\n*   **Look for ways to** **make money fast**. Also seek opportunities to earn passive income. Gig work and selling your unwanted items online are two simple ideas for generating a few dollars.\n*   **Seek** **financial assistance**. Private charity and government relief programs may be able to help. Also look into credit counseling or similar help with student loans or medical debt.\n*   **Adjust your 2021 withholding or estimates.** Receiving a tax refund means you've overpaid your taxes. If the same thing is set to happen for the 2021 tax year, you may be able to reduce your withholding or estimated tax payments for the remainder of 2021. You won't receive a lump sum of cash, but you might increase your take-home pay. Try using the IRS Tax Withholding Estimator or check with your tax preparer before making any adjustments. END
 TITLE: Still Waiting on Your Tax Refund? Here’s What to Do CONTENT: Waiting Is the Hardest Part\n---------------------------\nTracking the progress of your tax return and refund won't make the money arrive any faster. But you may be able to allay some of your fears about your tax return never arriving or your refund getting intercepted by fraudsters by using Where's My Refund or IRS2Go to see exactly where you are in the process. The IRS assures taxpayers that they're making progress toward getting 2020 refunds paid out—hopefully soon, before the 2021 tax season is upon us. END
 TITLE: Do You Need a Checking Account to Get a Credit Card? CONTENT: Having a Bank Account Makes Managing a Credit Card Easier\n---------------------------------------------------------\nWhen we talk about bank accounts, we're generally referring to checking and savings accounts. Each serves its own purpose when it comes to managing your finances, and both can help you manage your credit card in various ways. A checking account is meant for the frequent withdrawals and deposits associated with everyday spending. Checking accounts allow for unlimited monthly transactions with little to no fees. Find out how to get a checking account, and learn more about he benefits of having one.\nMeanwhile, a savings account is exactly what the name implies. It also allows you to set aside money long term, potentially earning interest on your deposits. Most banks and credit unions tack on fees or change the account type if you make too many withdrawals from a savings account in a given month.\nFor right now, let's focus on checking accounts. Having a checking account lets you see your spending history, deposits and account balance in one place pretty much in real time. What's more, a checking account provides a simple way to pay for various goods and services. You may be able to have your paycheck directly deposited into your account as well. And since bank checking accounts are insured up to a certain amount, you can rest easy knowing that your money is in a safe place.\nWhen it comes to your credit cards, you can set up automatic bill pay from your bank account so that you never miss a payment—a simple perk that can go a long way to protecting your credit score. If you have a cash back credit card, a checking account makes it easier to redeem your rewards. In most cases, you can receive your cash back as a direct transfer to an eligible bank account. END
 TITLE: Do You Need a Checking Account to Get a Credit Card? CONTENT: How to Pay Your Credit Card Bill Without a Bank Account\n-------------------------------------------------------\nIt's still possible to pay your credit card bill without a bank account, though you'll have to take a few extra steps. Here are your options:\n*   **Money order****:** This form of payment works like a regular check, except that it isn't linked to a checking account. Instead, you purchase a money order upfront using cash. You can do this at a post office, Walmart, Western Union or elsewhere at a cost of anywhere from $1 to $5 per transaction.\n*   **Cashier's check****:** A cashier's check is similar to a money order, but is guaranteed by the financial institution that issues it. They're typically only available to account holders, but some banks and credit unions may allow you to purchase them upfront in cash without an account. Just bear in mind that the fee probably will set you back about $10.\n*   **Cash:** Some credit card companies accept cash payments. For example, you can make payments toward a Chase credit card using cash at one of their ATMs. If your credit card issuer has a physical location nearby, you can pop in or call to see if cash payments are accepted. END
 TITLE: Do You Need a Checking Account to Get a Credit Card? CONTENT: Benefits of Having a Credit Card and Checking Account at the Same Bank\n----------------------------------------------------------------------\nThere's one other benefit of opening a checking account: If you do so at the same bank that issued your credit card, chances are you'll have access to their mobile app and online checking features. This allows you to link up your accounts, making it easier to manage your financial life because everything will be in one place.\nYou can schedule automatic transfers from your checking account right to your credit card and keep track of your transaction activity across all your accounts. This kind of simplicity can prevent overspending and keep your budget intact. END
 TITLE: Do You Need a Checking Account to Get a Credit Card? CONTENT: The Bottom Line\n---------------\nCarrying cash on your person or storing it in your home or car aren't the safest options. Establishing a checking account is a more secure way of managing your financial life. It also makes it that much easier to stay on top of your credit card bill payments. If you're considering getting a new credit card, Experian CreditMatch™ provides credit card offers that are personalized to you—and you can rest easy knowing viewing offers won't affect your credit scores. END
 TITLE: How to Downgrade Your Credit Card CONTENT: Benefits to Downgrading a Credit Card\n-------------------------------------\nDowngrading and upgrading cards is also called a product change, as you're swapping the credit card product without closing your account. As a result, you can keep your credit line and avoid the potential impact that closing a card can have on your credit scores.\nOften, people downgrade a card because their current card's annual fee is coming due soon. They might feel like the card isn't worth its fee anymore, but they also don't want to close the account altogether. If you downgrade to a card that doesn't have an annual fee, you may be able to avoid the fee or get a recently charged annual fee refunded.\nYou may even find that the card you swap to is more suitable for you. Maybe it has a more generous rewards program, or offers bonus rewards in a category that you're spending more money in right now. Even if your new card has lower rewards rates, you might wind up earning more overall after you account for the lack of an annual fee. END
 TITLE: How to Downgrade Your Credit Card CONTENT: Drawbacks to Downgrading a Credit Card\n--------------------------------------\nThere may be downsides to downgrading a credit card as well. For instance, if your current card has an introductory 0% annual percentage rate (APR) offer, the intro promotional period might be cut short. Ask a card issuer representative how a product change will impact your account's standard and promotional APRs to verify their policy before you make your decision.\nDowngrading to a lower-tier card could also mean you'll lose your original card perks, such as access to statement credits, primary rental car insurance and airport lounges. Additionally, you won't necessarily get intro bonus offers for the new card.\nAnd, if you earned an intro bonus on your original card and then try to downgrade it to avoid paying the first annual fee, the card issuer may claw back your rewards if it suspects you're gaming the system. END
 TITLE: How to Downgrade Your Credit Card CONTENT: Credit card issuers don't have to offer product changes or comply with your request, and each company may have different policies and rules.\nIf your card issuer allows downgrades, you can make the request by calling the card issuer and asking for a product change. Some issuers may also give you an option to request the downgrade online or send you a product change offer in the mail or online.\nReview the issuer's credit cards ahead of time to see which card you want to switch to. Your options could be limited to cards within the same \"family.\" For example, if you have a co-branded airline card, you might only be able to change to other co-branded cards with the same airline.\nWhen you request the change, the issuer's representative can tell you about the next steps in the process. You'll have to wait for the new card to arrive in the mail, but you may still be able to use your old card in the meantime.\nWhen downgrading isn't an option, you may have to close your account and apply for a new card. However, there's no guarantee that an issuer will approve your application for the new card. If your current card has rewards, you may also want to review the program rules to ensure you won't lose the rewards in your account when it's closed. END
 TITLE: How to Downgrade Your Credit Card CONTENT: Does Downgrading a Credit Card Affect Your Credit Score?\n--------------------------------------------------------\nDowngrading a credit card won't directly impact your credit score if your account isn't closed and your credit limit doesn't change.\nCredit scoring models, such as FICO, consider various factors related to credit card accounts, including when the account was opened, its current balance compared with the credit limit (credit utilization rate) and your payment history with the account. However, the specific card, interest rate and rewards program aren't part of your credit report and don't impact your credit score.\nClosing the account and applying for another credit card could impact your score in several ways, however. For instance, closing a card can lower your overall available credit, which may increase your utilization rate and hurt your scores. Opening a new card could lead to a hard inquiry and lower the average age of your accounts, which could also hurt your scores. END
 TITLE: How to Downgrade Your Credit Card CONTENT: Compare Options Before Downgrading or Applying\n----------------------------------------------\nWhether you're downgrading or applying to a different card, you can compare your options and choose the card that will be the best fit. You can review cards in the Experian CreditMatch™ marketplace. If you're going to apply for a new card, you may want to check your credit score for free first. END
 TITLE: How a Credit Card Bonus Can Help You Pay for Travel CONTENT: Credit Card Rewards Can Help Offset a Vacation\n----------------------------------------------\nThe most straightforward way your credit cards can help you offset or fully pay for an upcoming trip's expenses is with their rewards. Depending on the cards you have and the type of rewards they earn, you may be able to use your rewards to cover the cost of your airfare, hotels, rental car, gas, food and more.\nHere are some potential ways you can do this.\n### Book via Your Card Issuer's Travel Portal\nMany major financial institutions, including Chase and Capital One, have their own travel platform. So if you have a card that earns Chase Ultimate Rewards points, for instance, you can use your rewards to book travel through the Ultimate Rewards portal and save money that way.\nThis option is convenient, and in some cases, it's a method you can use to squeeze more value out of your rewards. For example, points earned with the Chase Sapphire Preferred® Card are worth 25% more when redeemed for travel through Chase Ultimate Rewards. And if you have the Chase Sapphire Reserve®, they're worth 50% more.\nThat said, some of these portals may not offer access to all travel providers, so you may miss out on a deal with a certain airline, hotel chain or other brand.\n### Book Directly With Travel Providers\nCertain travel credit cards, including the Capital One Venture Rewards Credit Card, allow you to use your card to book travel with any eligible travel provider, then use your rewards to get a statement credit that helps cover that purchase.\nThis method offers a lot of flexibility and also allows you to book directly with airlines, hotel brands and car rental companies, so you don't have to go through a middleman if there are issues with the reservation.\n### Transfer Rewards\nSome travel rewards programs allow you to transfer your points or miles to select partners, usually airline and hotel loyalty programs. You can do this with Capital One Miles, Chase Ultimate Rewards and certain Citi ThankYou® Points.\nBecause airline and hotel rewards programs often have dynamic pricing structures, this approach can make it possible to get more value out of your rewards than if you were to redeem them directly with the card company. That said, it can take more time and research to maximize your rewards this way.\n### Redeem for Cash or Gift Cards\nSome credit cards allow you to redeem your rewards for cash or gift cards at a good redemption rate. This can make it possible to cover expenses that travel rewards don't traditionally cover, such as groceries, restaurant meals, gas and more.\nHowever, it's important to note that many travel rewards programs don't offer as much value if you redeem your rewards for cash versus travel. With Capital One, for instance, your rewards miles are worth 1 cent apiece on travel redemptions but just 0.5 cents apiece if you redeem them for cash.\nIntro Bonuses Are Another Way to Save\nIn addition to the ongoing rewards cards earn on purchases, many of the top travel rewards cards offer a one-time intro bonus for new cardholders. In most cases, you'll be required to use the card to spend a certain amount on purchases within a set period in order to earn the bonus.\nThe spending requirement will vary depending on the card, but it usually ranges from $1,000 to $5,000, and most cards give you three months to meet the requirement—though in some cases, you may get up to six months.\nIn rare cases, you may get the welcome offer after you make just one purchase. But in most cases, expect to have to meet a spending threshold. For example, the Chase Sapphire Preferred® Card offers 100,000 bonus points after you spend $4,000 in the first 3 months.\nOne thing to keep in mind is that many card issuers place restrictions on who can earn a bonus. For example, if you've earned a bonus on the same card recently—say you had the card a few years ago and canceled it but want it again—you may not qualify to receive the intro bonus. This is one way card issuers can prevent credit card churning. END
 TITLE: How a Credit Card Bonus Can Help You Pay for Travel CONTENT: What to Consider Before Earning a Welcome Bonus\n-----------------------------------------------\nIf you're thinking about applying for a new credit card to take advantage of a welcome offer, there are several factors to keep in mind before you pull the trigger and apply.\n*   **Spending requirement:** Earning hundreds of dollars worth of points and miles can be exciting, but it's important to avoid overspending to achieve that goal. Check the card's spending requirement and determine if you can achieve it with your normal spending habits. For example, if you need to spend $4,000 in three months to earn a bonus, that comes out to roughly $1,333 per month. It's best to avoid an offer like this if you can't pay off the bill in full every month—otherwise you risk losing the rewards' value by paying interest on charges.\n*   **Ongoing annual fee:** A welcome bonus is often enough to make up for the card's annual fee for the first year and often even longer. But once you redeem those rewards, you'll need to pay the card's annual fee out of pocket. Run the numbers to find out whether you can get enough value out of the card after the intro bonus through its rewards program and perks.\n*   **Rewards value:** Not all rewards programs are created equal. While some credit cards may offer higher bonuses, they may not necessarily be more valuable than bonuses with fewer points. Do your research on point valuations and compare average values to determine which card can give you the most value. Look for cards that offer rewards rates that align well with your spending and also benefits that can enhance your travel experience.\n*   **Other card features:** While potential reward earnings and the card's welcome bonus are likely what you prioritize, there are other cost-saving features to keep in mind as well. With a travel credit card, you can benefit from things like extended warranties, purchase protection, added insurance coverage and more. Read the card's fine print before you sign up so you can understand the complete suite of benefits it offers. END
 TITLE: How a Credit Card Bonus Can Help You Pay for Travel CONTENT: Check Your Credit Before Applying for a Credit Card\n---------------------------------------------------\nMost of the best travel rewards credit cards with high intro bonuses require good to excellent credit. That generally means a FICO® Score☉ of 670 or higher, but each card issuer has its own criteria for creditworthiness.\nAs a result, the higher your credit score is, the better your chances of approval. Check your credit score and report to determine where you stand. If your score needs some work, take some time to review your credit report and look for areas where you can improve. It may take a while to achieve the credit score you want, but the effort can open up opportunities for bigger and better credit card bonuses and benefits. END
 TITLE: Is The Platinum Card<sup>®<\/sup> from American Express Worth the Annual Fee? CONTENT: As with every card that charges an annual fee, it's important to run the numbers before you apply to determine if you'd get enough value from the card every year to make it worth the cost. Keep in mind that while a card may offer enough theoretical value to make up for its annual fee, it only makes sense to keep it if you actually plan to use those benefits. Terms apply to all American Express offers.\nHere's a comprehensive list of what The Platinum Card® from American Express offers and how much each perk is worth:\n*   **Welcome offer:** As a new cardholder, you could be eligible for 100,000 bonus points after you spend $6,000 in the first 6 months you have the card. You can get up to 1 cent per point when you redeem your rewards with Amex, making the bonus worth up to $1,000. You may also get more value by transferring points to an Amex partner.\n*   **$200 airline fee credit:** You can get up to $200 in statement credits annually for airline incidental fees, such as checked baggage and inflight food and drinks paid for with your card and charged by the airline. You can only get the credit on one airline, which you can choose from a list of major U.S. carriers. You can update your selected airline once per year in January.\n*   **$200 Uber Cash benefit:** You'll get up to $200 in Uber Cash every year—that's up to $15 most months and $35 in December. You can use your Uber Cash to pay for rides or Uber Eats food delivery. Cardholders could also automatically become an Uber VIP member, where available. This benefit does not extend to additional card members.\n*   **$240 digital entertainment credit:** Each month, you'll get up to $20 in statement credits for subscription fees for Peacock, The New York Times, Audible and SiriusXM that are paid for using your card. Enrollment is required to receive this benefit.\n*   **$200 hotel credit:** You'll get up to $200 in statement credits every year on select prepaid hotel reservations booked through American Express Travel with your card. (Some bookings require a minimum two-night stay.)\n*   **$300 Equinox credit:** Cardholders get up to a $25 statement credit every month when they use their card to pay for a monthly membership to Equinox All Access, Destination or E by Equinox, or for Equinox+.\n*   **Global Entry or TSA Precheck application fee credit:** You'll get a statement credit every 4 or 4.5 years that covers the application fee for Global Entry ($100) or TSA Precheck ($85) when you use your card. The perk is effectively worth up to $20 per year.\n*   **$100 Saks credit:** From January through June, and again for the July through December period, cardholders can get a statement credit of up to $50 when you use your card to shop at Saks Fifth Avenue or saks.com.\n*   **Complimentary CLEAR membership:** Each year, you'll get up to $179 in statement credits when you use your card to pay the membership fee for CLEAR, which offers access to expedited airport security.\n*   **Airport lounge access:** The card offers access to the following airport lounge networks: The Centurion Lounge, American Express Global Lounge Collection, Airspace Lounge, Delta Sky Club, Escape Lounge, Priority Pass Select, Plaza Premium and Lufthansa. Amenities can vary by lounge, but many offer complimentary food and beverages, comfortable seating and more.\n*   **Elite status:** The card offers automatic Gold Elite status with Marriott Bonvoy and Gold status with Hilton Honors when you enroll. You'll also be able to enroll in Avis Preferred, Hertz Gold Plus Rewards and National Car Rental Emerald Club, all of which may offer discounts and complimentary upgrades when you rent a car.\n*   **The Hotel Collection credits:** When you book a stay of two nights or more at a property in The Hotel Collection through American Express Travel, you'll get a $100 experience credit for qualifying activities like dining or spa treatments.\n*   **Fine Hotels & Resorts perks:** When you book a stay at a property in the Fine Hotels & Resorts program through American Express Travel, you'll get benefits at each property. Examples include daily breakfast for two, late checkout and a $100 experience credit.\nAs you can tell, the card works best for people who regularly travel. Depending on how you plan to use the card and your travel habits, you could easily earn back more than the cost of the annual fee.\nUsing only the benefits with a predetermined annual value and the welcome offer, you can get up to $2,439 in the first year alone. After that, you could get up to $1,439 per year in value. Combine that with points earned when making purchases, too, and you can get even more value.\n> You may be matched with this and other cards at Experian CreditMatch™\n> \n> [Find Out If You're Matched](;refUrl=%2Fmember%2Foffers&br=exp&op=FRSC-ASK-ART-100-ILT-XXXXXXX-XX-EXP-VMAC-DIR-1205XX-44299X-XXXXX&dAuth=true) END
 TITLE: Is The Platinum Card<sup>®<\/sup> from American Express Worth the Annual Fee? CONTENT: Is the Annual Fee Worthwhile?\n-----------------------------\nThe annual fee on The Platinum Card® from American Express is worthwhile if you take advantage of most of the card's benefits—in the first year, you can make up for it with the welcome offer alone.\nAdditionally, you should consider the value you expect to get from the card's rewards. Cardholders get 5 points per dollar spent on flights booked with airlines or through the American Express Travel portal up to 500,000 per year, 5 points on prepaid hotels booked with American Express Travel and 1 point per dollar spent on most other purchases. During your first 6 months with the card, purchases at restaurants worldwide and at Shop Small-participating merchants in the U.S. get you 10 points per dollar spent—up to $25,000 in purchases.\nThat said, you'll need to keep using the benefits the card offers to offset the annual fee every year you have the card. That can be difficult because some, such as the airline incidental fee credit, have limitations that make it harder to maximize.\nBut if you travel often enough to use the card's benefits regularly and earn a lot of rewards points as you spend, it can make sense to have the card in your wallet.\nAlternatives to The Platinum Card® from American Express\n--------------------------------------------------------\nIf you're looking for a travel credit card that offers a lot of value with a lower annual fee or no annual fee at all, here are two options to consider:\n*   **Chase Sapphire Reserve®:** This premium travel credit card offers airport lounge access, a $300 annual travel credit, an application fee credit for Global Entry or TSA Precheck, special rental car privileges and more. While the $550 annual fee is steep, it's not as high as you'd pay with The Platinum Card® from American Express.\n*   **Chase Sapphire Preferred® Card:** This mid-tier travel card packs a punch despite its $95 annual fee. The card offers 5 points per dollar on travel booked through Chase; 3 points per dollar on dining, streaming services and online grocery purchases; 2 points per dollar on other travel purchases; and 1 point per dollar on everything else. You'll also get an annual $50 statement credit on hotel stays booked through Chase and a 10% points bonus every year based on your spending. END
 TITLE: Is The Platinum Card<sup>®<\/sup> from American Express Worth the Annual Fee? CONTENT: *   **Chase Sapphire Reserve®:** This premium travel credit card offers airport lounge access, a $300 annual travel credit, an application fee credit for Global Entry or TSA Precheck, special rental car privileges and more. While the $550 annual fee is steep, it's not as high as you'd pay with The Platinum Card® from American Express. END
 TITLE: Is The Platinum Card<sup>®<\/sup> from American Express Worth the Annual Fee? CONTENT: *   **Chase Sapphire Preferred® Card:** This mid-tier travel card packs a punch despite its $95 annual fee. The card offers 5 points per dollar on travel booked through Chase; 3 points per dollar on dining, streaming services and online grocery purchases; 2 points per dollar on other travel purchases; and 1 point per dollar on everything else. You'll also get an annual $50 statement credit on hotel stays booked through Chase and a 10% points bonus every year based on your spending. END
 TITLE: Is The Platinum Card<sup>®<\/sup> from American Express Worth the Annual Fee? CONTENT: Check Your Credit Before Applying for Your Next Card\n----------------------------------------------------\nIf you're thinking of getting a new card, make sure to check your credit score before you apply. Most of the top travel rewards cards require good or excellent credit. That typically means a credit score of 670 or above, though the higher it is, the better your odds of approval.\nIf your credit score needs some work, review your credit report for areas you can potentially address and take the time to improve your score before you apply. END
 TITLE: How to Pay Off Student Loans as a New Graduate CONTENT: 1\\. Start Paying as Soon as You Can\n-----------------------------------\nStudent loans typically have a grace period of six months after you graduate, and you technically don't have to make payments during that time.\nBut while your payments are still paused, interest may be accruing on your account. Once your monthly payments start coming due, the loan servicer capitalizes the accrued interest, adding it to your principal balance.\nIf you can afford it, pay off the accrued interest—and make additional payments—on your loans before the grace period ends to save money and speed up your repayment timeline. END
 TITLE: How to Pay Off Student Loans as a New Graduate CONTENT: 2\\. Pay More Than the Minimum Each Month\n----------------------------------------\nThe more you can pay each month, the fewer payments you will have to make over the life of the loan. It'll also save you money on interest.\nFor example, let's say you have $20,000 in student loans with an average interest rate of 5.5%. On a 10-year payment plan, your monthly payment would be roughly $217 and you'd pay $6,046 in interest. But if you were to pay an extra $50 to your monthly payment, you'd pay off your debt two years and four months early and save $1,493 on interest.\nKeep in mind that you'll need to let your loan servicer know you want the extra amount applied to the current month's payment—otherwise, they may apply it to the following month's payment. END
 TITLE: How to Pay Off Student Loans as a New Graduate CONTENT: 3\\. Pay More Toward Larger, High-Interest Loans First\n-----------------------------------------------------\nTake a look at your loans and see which ones are the largest and which have the highest interest rates. If you can pay extra each month, making sure the excess money goes toward the loans with the highest interest or balance can help you save money over time.\nOnce you finish paying off the larger, high-interest loans, you can focus your efforts on the remaining debt. END
 TITLE: How to Pay Off Student Loans as a New Graduate CONTENT: 4\\. Get a Job That Helps Pay Off Student Loans\n----------------------------------------------\nMany employers offer student loan repayment assistance programs. If you work in the medical field, public defense, armed forces or as a teacher, there are government agencies that offer this type of assistance. Additionally, some private employers offer repayment assistance as an employee benefit.\nDepending on your career field, research your options to find out if you can qualify for repayment assistance.\nThe same goes for federal student loan forgiveness programs. If you work for a government agency or eligible nonprofit organization, you could qualify for the Public Service Loan Forgiveness program. Also, some teachers may qualify for the Teacher Loan Forgiveness program. END
 TITLE: How to Pay Off Student Loans as a New Graduate CONTENT: 5\\. Get a Side Hustle\n---------------------\nIf your job doesn't provide enough income to help you achieve your goal of paying off your student loan, consider getting a side gig to make it easier.\nThere are plenty of ways you can earn money with a side hustle. For example, you may decide to be a rideshare or food delivery driver, work as a freelancer online, walk dogs or take on a small job that you can find through websites and apps like Craigslist or Thumbtack.\nSide hustles can take time out of your day, but they can also give you the extra income you need to eliminate your student loan debt. END
 TITLE: How to Pay Off Student Loans as a New Graduate CONTENT: 6\\. Refinance Your Loans\n------------------------\nRefinancing student loans involves paying off and replacing your existing student loans with a new one through a private lender.\nIn the right situation, refinancing can help you get a lower interest rate on your loans. You may also be able to get more flexibility with your repayment term. For example, if you can afford a larger payment, you can request a shorter repayment schedule and ensure that you become debt-free sooner.\nThat said, refinancing typically requires a solid credit history and income if you want to get the best terms. In some cases, it might make sense to ask a parent to cosign your student loan application to improve your odds of getting approved with favorable terms. END
 TITLE: How to Pay Off Student Loans as a New Graduate CONTENT: How Paying Off Student Loans Affects Your Credit\n------------------------------------------------\nMaking your student loan payments on time has a positive impact on your credit score. Having student loans along with other forms of credit, such as credit cards, an auto loan or a mortgage loan, can also help increase your score.\nOnce you fully pay off your loans, you may notice your credit score lower slightly. This may be because the account has been closed and you're no longer making payments, so that positive payment history isn't helping your credit as much as it was previously.\nBut in general, you'll typically see your score bounce back from this temporary dip. Overall, paying student loans responsibly can help build your credit. END
 TITLE: How to Pay Off Student Loans as a New Graduate CONTENT: Monitor Your Credit to Track Your Progress\n------------------------------------------\nAs a recent college graduate, you may not have had the chance to build your credit history much while you were in school. Now that you're making student loan payments and potentially also taking on other credit accounts, it's important to monitor your credit regularly, keep track of your progress and address potential issues as they arise.\nExperian's free credit monitoring service is an excellent way to do this. You'll get free access to your Experian credit report and your FICO® Score☉ powered by Experian data. You'll also get real-time alerts when updates to your credit report occur. This can include new accounts, new credit inquiries and new personal information.\nAs you monitor your credit consistently, you'll better understand how different actions can impact your credit score and have the information you need to address issues to avoid damage to your credit score. END
 TITLE: What Is a Bad Credit History and Rating? CONTENT: What Is Considered a Bad Credit Score and Rating?\n-------------------------------------------------\nTo a certain extent, bad credit is relative. As long as they obey laws forbidding discrimination, lenders get to determine their own lending criteria. Some seek only borrowers with exceptionally good credit ratings, and exclude applicants many others would accept. Other lenders focus on borrowers with less-than-ideal, or \"subprime,\" credit. Still others offer an array of products designed for borrowers with a variety of credit ratings.\nRegardless of their target borrower profiles, many lenders evaluate potential borrowers' credit ratings using credit scores: three-digit numbers derived by performing statistical analysis on the information in your credit report. Credit scores predict how likely you are to fail to repay a loan, with higher scores indicating lower risk that you'll fail to meet your obligations. The most popular scoring systems, the FICO® Score☉ and VantageScore® models, generate scores in the range of 300 to 850.\nLenders often use credit scores as a first step in their lending decision processes, excluding borrowers whose scores fall below a minimum threshold they choose. Lenders often also use credit scores to help set the interest rates they charge borrowers, and may direct applicants whose scores fall in certain ranges to particular products. Riskier borrowers might be offered credit cards with higher interest rates, for instance, while borrowers with the highest credit scores might be offered lower rates and bonus programs.\nFICO assigns ratings to ranges of credit scores according to their relative risk, as seen in the table below. Individual lenders may or may not segment credit applicants using these ranges and categories, and may be willing to extend credit to borrowers in any FICO® Score range from Exceptional to Fair. Some may even offer modest amounts of credit (possibly requiring a security deposit or collateral) to borrowers with scores in lowest range. END
 TITLE: What Is a Bad Credit History and Rating? CONTENT: What Factors Influence Your Credit Report and Scores?\n-----------------------------------------------------\nThe history of debt management recorded in your credit report is the basis for your credit scores and the determination whether your credit is \"good\" or \"bad.\"\nGenerally speaking, credit report entries that indicate the difficulties with credit management will be detrimental to your credit profile and your credit score, while those that show sound credit management will promote good credit scores. Credit report entries that can hurt your credit scores the most include:\n*   **Late or missed payments**: Payment history is the most important aspect of your FICO® Score, and even one 30-day-late or missed payment can hurt your score. Payment history is responsible for about 35% of your FICO® Score.\n*   **Excessive credit card usage**: Using a high percentage of the borrowing limit on individual credit cards or on all your cards collectively can make lenders think you're overly reliant on credit. You can calculate that percentage, known as credit utilization, for each credit card by dividing your current outstanding balance by its borrowing limit, and then multiplying by 100 to get a percentage. You can also calculate your overall utilization by dividing the sum of all your balances by the sum of all your limits. Lenders like to see credit utilization, for each card and especially on all cards overall, of less than 30%—individuals with the best credit scores tend to keep utilization at 10% or less. Credit utilization accounts for 30% of your FICO® Score.\n*   **Seeking a lot of credit in a short time**: Whenever a creditor requests your credit report or a credit score based on it for a lending decision, a hard inquiry is recorded in your credit file. These inquiries stay in your file for two years and can cause slight temporary reductions in your credit score. Lenders look at the number of hard inquiries to gauge how much new credit you are requesting. Too many inquiries can raise the level of risk you present to a lender or scoring model and affect your credit scores and the credit you'll be able to secure. New credit activity accounts for about 10% of your FICO® Score.\n*   **Major negative events**: Major credit management missteps that can appear on a credit report include foreclosure, bankruptcy, repossession, charge-offs (the lender gives up hope of collecting what you owe and closes your account) and settled accounts (the lender accepts less than the full amount you owe in a negotiated arrangement, and then closes your account). Each of these can severely hurt your credit for years, even up to a decade. END
 TITLE: What Is a Bad Credit History and Rating? CONTENT: Consequences of a Bad Credit History and Rating\n-----------------------------------------------\nIndividuals with good credit enjoy many advantages, but if you have a poor credit history and rating, lenders may be reluctant to do business with you. That means:\n*   It may be difficult for you to get loans and credit cards.\n*   If you can get a loan or credit card, you'll likely be offered a relatively small loan amount or spending limit, and you may have to pay a relatively high interest rate. That could cost you hundreds, thousands or even tens of thousands of dollars over the life of a loan, depending on the amount you're borrowing.\n*   When securing equipment such as cellphones or cable modem, or even renting a car or apartment, poor credit could mean you'll have to pay extra fees or put down security deposits that aren't required of borrowers with more favorable credit.\n*   Poor credit can mean you pay higher car insurance premiums than you'd receive if your credit were better. END
 TITLE: What Is a Bad Credit History and Rating? CONTENT: How to Improve Bad Credit\n-------------------------\nBad credit doesn't last forever. You can take steps anytime to begin adopting good credit habits that promote improvements in credit score and credit rating. These include:\n*   **Check your credit score.** When you get your free FICO® Score score from Experian, you'll also receive an explanation of the factors in your credit report that are having the greatest negative impact on your score. That can give you a good idea where to focus your score-improvement efforts.\n*   **Pay your bills on time.** A good way to avoid late payments is to set up automatic electronic payments for recurring bills, such as student loans and car payments. Setting up email or text message reminders and calendar alarms can help as well. Whatever it takes, do all you can to avoid making late payments.\n*   **Pay down credit card debt.** Any payment that reduces an outstanding credit card balance lowers your overall utilization ratio (assuming, of course, that you aren't running up new charges at the same time). If you focus on avoiding new card purchases, and work on paying down the cards with the highest individual credit utilization, you may be able to make progress toward credit score improvement in a relatively short time.\n*   **Apply for new credit only as needed.** Avoiding hard inquiries for a year or two can help your credit score recover some, and remove the appearance of overeagerness for new credit accounts.\n*   **Boost your credit.** Experian Boost™† is a free program that adds your on-time utility, phone and streaming service payments to your Experian credit report, often instantly increasing your credit scores based on your Experian credit data.\n*   **Get credit improvement help.** If you're having trouble getting approved for a credit card or loan on your own, you can build credit history with the help of others:\n    *   Become an authorized user on someone else's account.\n    *   Work with a cosigner who has good credit. When you have a cosigner for a loan or credit card, the lender also considers them jointly responsible for the debt.\n    *   Open a secured credit card account. With a secured credit card account, you provide a deposit and the card issuer allows you to borrow up to a certain amount, only using the deposit if you stop paying your bills.\n*   **Be patient.** If you have major negative events on your credit report, they can hurt your credit score and credit rating for years, but their impact will diminish over time. That's why patience is another prescription for improving your credit. As long as you avoid additional missteps and embrace good credit habits, your credit will tend to improve over time.\n### Learn More About Your Credit History and Rating\n*   How to “Fix” a Bad Credit Score  \n    To improve a bad credit score, understand the basic contributors to credit and take steps to address the factors that are making a negative impact.\n*   How to Improve Your Credit Score  \n    There are steps you can take to increase your credit score, and the sooner you address certain factors, the faster your credit score will go up.\n*   What Is a Bad Credit Score?  \n    Based on the FICO Score range of 300 to 850, a credit score below 669 is considered either fair or bad.\n*   How to Get a Loan With Bad Credit  \n    Getting a loan with bad credit is possible, but it may be more difficult and expensive. Here’s what you should do.\n*   How to Rebuild Credit  \n    Good credit can make many of life's financial situations easier and less costly. For example, with good credit, you can get approved for a mortgage or auto loan, and...\n*   What Are the Different Credit Scoring Ranges?  \n    Lenders use credit scoring ranges to decide whether to take a risk on a potential borrower. Understanding your score and how it fits into a scoring range will help...\n*   Why No Credit Is Better Than Bad Credit  \n    Having bad credit is more challenging than having no credit, but both can limit your ability to borrow money. Here’s how to overcome either.\n*   Can You Get a Job With Bad Credit?  \n    Bad credit can affect your job prospects, especially if you’re applying for a finance or management role. END
 TITLE: How Does a Foreclosure Affect Credit? CONTENT: What Is a Foreclosure?\n----------------------\nA foreclosure occurs when a mortgage lender takes possession of a property from a borrower after the borrower fails to keep up with their loan payments. The lender is legally entitled to seize the property to recover as much of the loan amount as possible.\nHere's what to know about foreclosures and how they can affect your credit. END
 TITLE: How Does a Foreclosure Affect Credit? CONTENT: How Long Does a Foreclosure Stay on Your Credit Report?\n-------------------------------------------------------\nA foreclosure entry typically appears on your credit report within a month or two after the lender initiates foreclosure proceedings. The entry remains on your credit report for seven years from the date of the first missed payment that led to the foreclosure. After that, it is deleted from your report.\nForeclosures have a considerable negative impact on credit scores, but as with all derogatory credit report entries, the number of points by which they'll lower your score depends on many factors. These include what your score was before foreclosure and the number of negative entries on your credit report.\nForeclosures typically occur only after you miss at least four successive monthly payments (120 days of delinquency). Missed payments bring down credit scores more than any other negative entries, so your credit scores typically will have dropped significantly even before a foreclosure appears on your credit report. (If you are missing payments on other debts as well, this has a compound effect.) END
 TITLE: How Does a Foreclosure Affect Credit? CONTENT: How Do Lenders See a Foreclosure?\n---------------------------------\nArguably more significant than its effect on credit scores is the negative light in which many lenders view foreclosures. Every lender sets its own lending criteria, and there's no universal rule about how a lender will treat a foreclosure in terms of this criteria. But it's safe to say all lenders consider foreclosure a serious derogatory event in your credit history, second only to bankruptcy in terms of severity. Many creditors won't even consider applicants with foreclosures on their credit reports, while others may disregard foreclosures that are several years old, if the applicant meets the rest of their lending criteria. END
 TITLE: How Does a Foreclosure Affect Credit? CONTENT: Can You Remove a Foreclosure?\n-----------------------------\nA legitimate foreclosure entry cannot be removed from your credit report before its expiration date, seven years from the date of the first missed loan payment. At that point in time, the entry should fall off your credit report on its own. If it doesn't come off your report after that date, or in the highly unlikely event that your credit report reflects a foreclosure that never happened, you can use the credit report dispute process to document the error and have your credit reports corrected.\nA foreclosure is a difficult process that can have major negative impacts on your credit, but with time and good credit habits, it is possible to recover and one day buy another home of your own. END
 TITLE: What to Know About Filing Bankruptcy CONTENT: What Happens When Declaring Bankruptcy?\n---------------------------------------\nIf you're struggling financially, bankruptcy gives you the opportunity to pay down a portion of your debts over time or have some of them eliminated entirely.\nEither way, declaring bankruptcy grants what's called an automatic stay, which is essentially a block on your debt to keep creditors from trying to collect. They can't deduct money from your bank account, garnish your wages or go after any of your other assets.\nYou'll then have time to work with the court and your creditors to determine the next steps. END
 TITLE: What to Know About Filing Bankruptcy CONTENT: Will I Lose My Property?\n------------------------\nWhat happens to your property depends on whether you file chapter 7 or chapter 13 bankruptcy. If you're not sure which option is right for your situation, see \"Bankruptcy: Chapter 7 vs. Chapter 13.\" Here's what to expect based on which route you choose.\n### Chapter 7\nChapter 7 bankruptcy is often called liquidation bankruptcy because you will likely need to sell off some of your assets to satisfy at least a portion of what you owe.\nThat said, state laws determine that some assets, such as your retirement accounts, house and car, are exempt from liquidation. Check with a bankruptcy attorney in your state to find out what property you would be allowed to keep.\n### Chapter 13\nWith a chapter 13 bankruptcy, you don't need to worry about needing to sell off any of your property to satisfy your debts. Instead, your debts will be reorganized so that you can pay them off partially or in full over the next three to five years.\nKeep in mind, though, that if you don't comply with the payment plan, your creditors may be able to go after your assets to satisfy your debts. END
 TITLE: What to Know About Filing Bankruptcy CONTENT: What Happens to My Credit if I Declare Bankruptcy?\n--------------------------------------------------\nWhen you declare bankruptcy, it's a sign that you are no longer paying your debts as originally agreed, and it can seriously damage your credit history. That said, the two types of bankruptcy aren't treated the same way. Because chapter 7 bankruptcy completely eliminates the debts you include when you file, it can stay on your credit report for up to 10 years.\nWhile chapter 13 bankruptcy is also not ideal from a credit standpoint, its setup is viewed more favorably because you are still paying off at least some of your debt, and it will remain on your credit report for up to seven years.\nShortly after your bankruptcy is discharged by the court—meaning you no longer owe the debts you've included in your filing—it may be difficult to get approved for credit, especially with favorable terms. There are some lenders, however, who specifically work with people who have gone through bankruptcy or other difficult credit events, so your options aren't completely gone.\nAlso, the credit scoring models favor new information over old information. So with positive credit habits post-bankruptcy, your credit score can recover over time, even while the bankruptcy is still on your credit report. END
 TITLE: What to Know About Filing Bankruptcy CONTENT: Are Bankruptcy Filings Publicly Available?\n------------------------------------------\nBankruptcies are considered a public record, but that doesn't mean everyone's going to know about it. Bankruptcy proceedings are filed in a system called Public Access to Court Electronic Records, or PACER for short.\nFor the most part, it's more common for attorneys and creditors to use this system to look up information about your bankruptcy. But anyone can register and check if they want to. The service charges 10 cents per page to access case information.\nAnother way people might find out about your bankruptcy is if your local newspaper publishes public notices.\nFinally, employers, landlords and creditors may be able to see on your credit report that you've filed bankruptcy when you apply for a job, an apartment lease, or a loan or credit card. END
 TITLE: What to Know About Filing Bankruptcy CONTENT: Will Bankruptcy Affect My Job or Future Employment?\n---------------------------------------------------\nTwenty-nine percent of employers run a credit check on new job applicants, according to a survey by CareerBuilder. As a result, declaring bankruptcy could affect your ability to get a new job, especially if that job is in the financial services industry or with a government entity.\nThey do this primarily to make sure you're a good fit for the jobs—such as handling money—and that you're not financially stressed, which could increase the likelihood of theft or fraud.\nIf an employer simply runs a routine criminal background check, however, your bankruptcy won't show up.\nIt's less likely that employers would conduct background checks on current employees. So if you're not planning to switch jobs, you likely don't need to worry much about a bankruptcy affecting your employment. END
 TITLE: What to Know About Filing Bankruptcy CONTENT: Keep Track of Your Credit During the Process\n--------------------------------------------\nBecause declaring bankruptcy can affect your credit history and ability to do certain things in the future, it's important to monitor your credit scores during the process and as you work on recovering from the ordeal.\nAs you do so, watch how certain actions affect your credit scores and look out for potential errors and negative information that might influence your score negatively. If you do find something that doesn't belong on your credit report, dispute it with the credit reporting agencies.\nAs you keep track of your credit score during and after bankruptcy, you'll learn better how to improve it over time and keep it in a good place going forward. END
 TITLE: How Do Lenders View Your Credit? CONTENT: What Lenders Look at on Your Credit Report\n------------------------------------------\nYour credit report provides a detailed record of how you manage credit. For lenders who are just getting to know you, a credit report tells a lot about your experience with various kinds of credit. The best way to visualize what your credit report says is to check it yourself. You can access your credit report for free from all three credit bureaus at AnnualCreditReport.com or get a free Experian credit report anytime. You can also read up on what a typical Experian credit report contains. A few highlights:\n*   **Personal information**, including any names associated with your credit, current and past addresses and date of birth\n*   **Current and past employers** that have been listed on past credit applications\n*   **Open loans and revolving credit accounts** with credit limits, dates of late payments and current status\n*   **Collection accounts**, both open and resolved\n*   **Bankruptcies**, which are the only public record listed on your credit report\n*   **Credit inquiries**, including those from prospective lenders and credit card issuers\nLenders don't necessarily expect to see a flawless credit report. But a history of late payments, accounts in collections or a flurry of recent credit inquiries can raise red flags, lower credit scores, and may disqualify you from getting the best rates and terms or from being approved at all. END
 TITLE: How Do Lenders View Your Credit? CONTENT: What Is Considered a Good Credit Score?\n---------------------------------------\nYour credit report provides a detailed credit history, while your credit score gives a quick read on how well you manage credit. Using data from your credit report, credit scoring models create numerical scores ranging from 300 to 850. The exact algorithms used to calculate these scores are not public knowledge, but the factors that affect your credit score are widely known. FICO, whose scores are used in most consumer lending decisions, breaks down the factors as follows:\n*   **Payment history**: Paying on time every time creates a solid base for your credit score.\n*   **Amounts owed**: The less of your available revolving credit you're using, the better. Progress on paying off loans is also considered in this factor.\n*   **Length of credit history**: Having long-standing accounts shows stability.\n*   **Credit mix**: A diverse mix of revolving credit cards and installment loans shows you can manage multiple types of credit.\n*   **New credit**: While opening new credit isn't bad per se, frequent credit applications can make you appear as more of a credit risk.\nHow does your credit score stack up? Here are FICO credit score ranges and how they might play out when you're applying for credit:\nAlthough scores of 670 and above are considered \"good,\" when you're applying for credit, there's no one credit score that's universally considered \"good enough\" for all lenders and all types of credit. For instance, the score you'll need to qualify for a benefits-rich rewards card with a hefty credit line is going to be significantly higher than what you'll need to get a more basic credit card. With a higher credit score, you'll often be able to access better rates and terms. If your score is less than stellar, however, your options are to accept the rates and terms you qualify for now, or wait and try to raise your score significantly. END
 TITLE: How Do Lenders View Your Credit? CONTENT: How to Improve Your Credit Before Applying\n------------------------------------------\nBefore applying with a lender, start by checking your credit score and report. This will give you a better idea of what types of loans and credit cards you might qualify for. You can access your Experian FICO® Score and credit report for free at any time, or sign up for free credit monitoring with alerts that let you know when changes have been made to your credit file.\nUnless your credit score is already top-tier, there's always room for improvement. And moving from \"good\" to \"very good\" credit, for example, may open the doors to lower interest rates, more favorable terms or simply a better chance of approval. Although there's no quick fix for your credit, there are steps you can take to bring your credit score up. Here are a handful of tips to consider:\n*   **Review your credit scoring risk factors.** These are shown with your Experian credit report and score, and are a great starting point when trying to bring your score up.\n*   **Practice good credit habits.** Pay every bill on time, keep your credit card balances low and don't apply for credit unnecessarily.\n*   **Check out Experian Boost™† .** Adding on-time utility, phone and streaming service payments to your credit file with Experian Boost may help you bump up your scores.\n*   **Give yourself time.** The longer your history of making on-time payments, the more beneficial those payments will be. If you have negative marks on your credit, the passage of time will reduce the impact they have on your scores and eventually they'll be removed entirely. If you've recently paid down card balances to reduce your credit utilization, it may take a few billing cycles for your score to fully reflect that change. Bottom line: If you want to raise your credit score to improve your loan or credit card options, there's no better time to start than now.\nThe same advice holds if you don't have much of a credit history—or your credit file is \"thin\" (with fewer than five credit accounts). It may take time to build the credit score you aspire to, so start working on it now. Building good credit from scratch may take multiple steps. You may need to begin with a secured credit card or start with a credit-builder loan. Over time, as long as you manage your credit responsibly and continue to make all payments on time, your positive credit history will populate your credit report and build up your score. END
 TITLE: How Do Lenders View Your Credit? CONTENT: What Else Do Lenders Look at in Your Credit Application?\n--------------------------------------------------------\nTogether, your credit score and report provide quite a bit of insight into how you manage credit. But most lenders also want to know more about you and your finances. This information is not included in your credit report, and they'll typically ask you to provide this information yourself or provide documentation to back it up.\n**Income**: Lenders want to know about your employment and monthly income so they know you can afford to pay back your debt. They'll also use this information to calculate your debt-to-income ratio to make sure your total debts aren't eating up too much of your monthly income.\n**Capital**: Lenders want to know that you'll be able to make your payments even if you run into a bit of financial trouble. Having emergency savings or an investment account shows you have the financial backup to carry on through choppy waters.\n**Collateral**: Two common examples of collateralized—or secured—loans are mortgages and car loans. If you default on either of these types of loans, the lender will seize your property and sell it to recoup their money. Credit cards are generally unsecured, though applicants who are building credit may consider secured credit cards, which require you provide a cash deposit equal to your credit line as collateral. If your collateral is property, you'll likely need to prove its value and that you own it.\nLenders may also look at factors that don't seem to relate directly to credit. For example, if you've been at your job for many years or have lived in the same place for a long time, that's seen as a sign of stability. END
 TITLE: What Is a Bad Credit Score? CONTENT: What Is a Bad or Poor FICO® Score?\n----------------------------------\nA FICO credit score is a number between 300 and 850 designed to indicate the likelihood that a consumer will repay a loan on time. The higher number, the greater the consumer's creditworthiness. This number is created from account and payment information on a user's credit report. A score between 300 and 579 is considered to be very poor, while one that's between 580 and 669 is considered fair.\nCredit Score\nRating\n% of People\nImpact\n300-579\nVery Poor\n16%\nCredit applicants may be required to pay a fee or deposit, and applicants with this rating may not be approved for credit at all.\n580-669\nFair\n18%\nApplicants with scores in this range are considered to be subprime borrowers.\n670-739\nGood\n21%\nOnly 8% of applicants in this score range are likely to become seriously delinquent in the future.\n740-799\nVery Good\n25%\nApplicants with scores here are likely to receive better than average rates from lenders.\n800-850\nExceptional\n20%\nApplicants with scores in this range are at the top of the list for the best rates from lenders. END
 TITLE: What Is a Bad Credit Score? CONTENT: What Is a Bad or Poor Vantage Score?\n------------------------------------\nVantageScore is another credit scoring model that also uses data from consumers' credit history to help predict their likelihood of repaying a loan. Like FICO scores, VantageScores also generally use the range of 300 to 850. With the newer VantageScore models, a score of 601 to 660 is considered to be fair, while a score of 500 to 600 is poor. Scores between 300 and 499 are very poor.\nCredit Score\nRating\n% of People\nImpact\n300-499\nVery Poor\n5%\nApplicants will not likely be approved for credit.\n500-600\nPoor\n21%\nApplicants may be approved for some credit, though rates may be unfavorable and with conditions such as larger down payment amounts.\n601-660\nFair\n13%\nApplicants may be approved for credit but likely not at competitive rates.\n661-780\nGood\n38%\nApplicants likely to be approved for credit at competitive rates.\n781-850\nExcellent\n23%\nApplicants most likely to receive the best rates and most favorable terms on credit accounts. END
 TITLE: What Is a Bad Credit Score? CONTENT: What Affects Your Credit Score\n------------------------------\nThere are many—in fact, hundreds—of credit scores that lenders use to help make lending decisions. Several factors affect those credit scores. But in almost all credit scores, the two factors that affect your credit scores the most are your payment history and credit utilization rate.\n*   **Payment history**: With the FICO credit scoring models, your bill payment history makes up 35% of your credit score. Consistently making payments on time helps your score, while missing payments will hurt it. Furthermore, the longer your payment is late, the more your score will suffer. And recent late payments have a greater effect than those that happened further in the past.\n*   **Amounts owed**: FICO scores consider how much of your available revolving credit you're using at any given time, also called your credit utilization ratio, for 30% of your score. Your credit utilization ratio is based on the amount you owe on revolving credit such as credit cards compared with the total amount of credit that you've been extended. To calculate your ratio, divide all your revolving credit balances by your total credit limits on those accounts. The more you owe relative to your total credit limit, the more it could lower your credit score. In general, always try to maintain a ratio of 30% or less to avoid hurting your score. For top credit scores, keep your utilization under 6%.\nThere are three other factors that affect your credit score to a lesser degree.\n*   **Length of credit history**: This factor makes up 15% of your credit score and is based on the average length of time your accounts on your credit report have been open. The older your credit accounts are, the better it will be for your credit score.\n*   **New credit**: When a consumer applies for many new credit accounts in a short period of time, it can be seen as an indication of possible financial problems. This factor makes up 10% of a FICO score.\n*   **Credit mix**: The FICO scoring models also consider the different types of credit used by a consumer. A good mix of installment credit (such as home mortgages, student loans and auto loans) and revolving credit (such as credit cards and lines of credit) shows that you can manage different types of accounts, and this usually helps your credit. However, FICO doesn't recommend that consumers take out additional types of loans in an effort to improve their scores.\nFinally, certain types of negative information can adversely affect a credit score, such as bankruptcies, foreclosures and collections. END
 TITLE: What Is a Bad Credit Score? CONTENT: How a Poor Credit Score Can Affect You\n--------------------------------------\nHaving a bad—or low—credit score can affect you in several ways:\n*   **Higher interest rates**: Because lenders see those with bad credit as a higher risk, they'll charge interest rates accordingly. Having a poor credit score will result in a higher interest rate on your home mortgage, for example, which can cost you tens of thousands of dollars over the life of the loan.\n*   **Trouble getting a mortgage**: Mortgages are very large loans, so understandably, lenders want to be confident you will not default on them. While some will simply charge higher interest rates, others may reject your application altogether.\n*   **Risk of being denied credit**: Lenders are more likely to reject your loan application if you have a history of managing credit poorly.\n*   **Difficulty getting approved for an apartment or cellphone contract**: Again, it all comes back to risk. Providers don't want to lose money by taking on a risky customer.\n*   **Risk of being turned down for a job**: While employers can't access your credit score, they can request your credit report, and having negative information there could put you at risk for being turned down for a job. That's particularly the case for positions that have financial responsibilities.\n*   **Difficulty obtaining a small business loan**: If you run a small business, having poor credit could make it difficult or impossible to borrow money to help your company.\nFinally, those with bad credit will likely have difficulty obtaining a conventional car loan and may have to utilize alternative, and more expensive, financing options.  \nHow to Improve Bad Credit\n-------------------------\nThere is not a simple answer to this question because every person's situation is unique. But under most circumstances, if your scores are low but you start to take some positive action, you can see results in about two to three months. Here are some ways to improve your credit scores:\n1.  First, check your credit score to see where it actually is. Experian offers you a free FICO® Score so you can see how you might look to a lender.\n2.  Pay all of your bills on time. Your payment history is the most important factor in your FICO® Score, so making sure you pay all of your bills on time should be the highest priority. Try setting up automatic payments and payment reminders to help you to avoid late payments.\n3.  Pay down revolving debt such as credit cards. This decreases your credit utilization rate and could help your scores.\n4.  Become an authorized user on a family member's credit card. You will have to find a trusted partner for this, as the account owner is responsible for paying the bill for this account.\n5.  Get a secured credit card. A secured credit card requires you to deposit money into an account which is used as collateral for a credit card and typically serves as your credit limit. The benefit for you is that most secured cards report your payment history to the three national credit reporting agencies—Experian, Equifax and TransUnion (confirm this with the card issuer when you're researching secured cards). If you maintain a positive payment history, this account will help you build your credit history and likely improve your credit score.\n6.  Try Experian Boost™† . This free program can help improve your FICO® Score by allowing you to add positive payment information from the utility and telecom bills you pay every month to your credit report, often immediately boosting your scores.\n7.  Apply for a short-term loan. A short-term loan is an unsecured loan that typically needs to be paid back in less than a year. Short-term personal loans are available in a variety of packages, and the devil is in the details with payment terms. Read agreements carefully.\n8.  Apply for a credit-builder personal loan. A personal loan is an installment loan that typically has a lower interest rate than credit cards and can help you make a big purchase or it can be used to consolidate multiple credit card debts into a single, lower-cost monthly payment. A credit builder personal loan requires a refundable security deposit.\n9.  Try to fix errors in your credit report. If there is fraudulent or inaccurate information on your credit report, then you can dispute it with the credit bureaus.\nThe Bottom Line\n---------------\nHaving bad credit presents serious problems with your personal finances, so it's important to know your credit report and credit score. Thankfully, there are many steps you can take to improve your credit, and you can start to see results within just a few months. By taking the time to understand how credit scores work, and what causes bad credit, you can manage your credit responsibly and enjoy additional financial opportunities as you improve your credit score. END
 TITLE: What Is a Bad Credit Score? CONTENT: How to Improve Bad Credit\n-------------------------\nThere is not a simple answer to this question because every person's situation is unique. But under most circumstances, if your scores are low but you start to take some positive action, you can see results in about two to three months. Here are some ways to improve your credit scores:\n1.  First, check your credit score to see where it actually is. Experian offers you a free FICO® Score so you can see how you might look to a lender.\n2.  Pay all of your bills on time. Your payment history is the most important factor in your FICO® Score, so making sure you pay all of your bills on time should be the highest priority. Try setting up automatic payments and payment reminders to help you to avoid late payments.\n3.  Pay down revolving debt such as credit cards. This decreases your credit utilization rate and could help your scores.\n4.  Become an authorized user on a family member's credit card. You will have to find a trusted partner for this, as the account owner is responsible for paying the bill for this account.\n5.  Get a secured credit card. A secured credit card requires you to deposit money into an account which is used as collateral for a credit card and typically serves as your credit limit. The benefit for you is that most secured cards report your payment history to the three national credit reporting agencies—Experian, Equifax and TransUnion (confirm this with the card issuer when you're researching secured cards). If you maintain a positive payment history, this account will help you build your credit history and likely improve your credit score.\n6.  Try Experian Boost™† . This free program can help improve your FICO® Score by allowing you to add positive payment information from the utility and telecom bills you pay every month to your credit report, often immediately boosting your scores.\n7.  Apply for a short-term loan. A short-term loan is an unsecured loan that typically needs to be paid back in less than a year. Short-term personal loans are available in a variety of packages, and the devil is in the details with payment terms. Read agreements carefully.\n8.  Apply for a credit-builder personal loan. A personal loan is an installment loan that typically has a lower interest rate than credit cards and can help you make a big purchase or it can be used to consolidate multiple credit card debts into a single, lower-cost monthly payment. A credit builder personal loan requires a refundable security deposit.\n9.  Try to fix errors in your credit report. If there is fraudulent or inaccurate information on your credit report, then you can dispute it with the credit bureaus. END
 TITLE: What Is a Bad Credit Score? CONTENT: The Bottom Line\n---------------\nHaving bad credit presents serious problems with your personal finances, so it's important to know your credit report and credit score. Thankfully, there are many steps you can take to improve your credit, and you can start to see results within just a few months. By taking the time to understand how credit scores work, and what causes bad credit, you can manage your credit responsibly and enjoy additional financial opportunities as you improve your credit score. END
 TITLE: How Can I Remove Late Payments From My Credit Report? CONTENT: Check Your Credit Report to See if the Late Payments Are Accurate\n-----------------------------------------------------------------\nTo start, review your credit reports and the details about the late payments. Consider which account is being reported late, when the late payments were reported and the amount that was reported past due. Keep in mind, interest and fees can lead to larger past-due balances.\nIf you're able to, review your own financial records about the account to see if there's a discrepancy. While even being one day late is enough for some creditors to charge you a late fee and dole out other penalties, many won't report an account as delinquent until it is 30 days past due.\nOnce a late payment is reported to one of the credit bureaus (Experian, TransUnion or Equifax), it can stay on your credit report for up to seven years. Even if you later bring your account current, the payment you missed will remain in your credit history as a record of what happened.\nMost negative information, late payments included, will be removed from your credit reports after seven years. Additionally, when a series of late payments leads to your account being closed, charged off or transferred to a collection agency, the entire account will be removed seven years after the first missed payment that led up that status. Chapter 7 bankruptcies stay on your credit report for up to 10 years, but the accounts included in the bankruptcy are also removed after seven years.\nIf you believe there's an error on your credit report, the federal Fair Credit Reporting Act (FCRA) gives you the right to dispute the item with the credit bureaus at no charge. The credit bureau will typically contact the company that reported the information and ask them to verify its accuracy. The creditor must complete a reasonable investigation and generally has 30 days to respond to the dispute. If additional information is provided during the dispute process, 15 days can be added to the investigation period. END
 TITLE: How Can I Remove Late Payments From My Credit Report? CONTENT: Contact Your Creditor for Assistance\n------------------------------------\nIf you believe a creditor incorrectly reported the late payment, you may want to start by submitting a dispute directly to them. Include any documentation you have—such as copies of a canceled check or payment verification email.\nIf the creditor investigates and agrees that there was an error, it will send an update to all the credit bureaus it reports to and have the late payment corrected or deleted. You can monitor your credit reports for the changes, which may take several billing cycles to appear. END
 TITLE: How Can I Remove Late Payments From My Credit Report? CONTENT: How to Dispute Inaccurate Information on Your Credit Report\n-----------------------------------------------------------\nYou can also dispute any inaccurate information on your credit reports with the appropriate credit bureaus. Once a dispute is filed with the bureau, it will reach out to the creditor that supplied the information and ask them to verify it and respond to your claim.\nIf the creditor makes a change in response to your dispute, it must notify all other consumer reporting agencies to which it reported the information of the change.\nBecause each bureau handles disputes independently, you should check your report with each to make sure the changes have been made. If they haven't, contact each of the credit reporting companies that are reporting the information separately to initiate a dispute with them.\nExperian has an online portal you can use to submit a dispute, or you can file a dispute by phone, mail or fax if you prefer. Equifax and TransUnion have similar systems and options.\nFiling a dispute is free, and you can attach or send copies of supporting documentation to verify your claim. However, some items that appear on your credit report typically aren't disputable, such as correct legal names and addresses.\nOnce a credit bureau concludes its investigation, it may verify, update or delete the item in question. Disputes are generally resolved in 30 days—although they may be completed even sooner.\nSometimes, the creditor will disagree and continue to report the late payment, or the late payment may be removed temporarily but re-reported later once it has been verified. If you still disagree, and you have additional documentation supporting your claim, you can submit that new documentation to the credit bureau and request a new dispute. END
 TITLE: How Can I Remove Late Payments From My Credit Report? CONTENT: Monitor Your Credit for Free\n----------------------------\nRegularly monitoring your credit reports for changes can help you stay on top of new information as it is reported and can also help detect potential credit fraud or identity theft sooner. Experian's free credit monitoring can help by automatically alerting you to important or potentially suspicious changes. Whether it's a late payment, a balance increase or a collection account, keeping a close watch can help you keep your credit scores in great shape and help you protect yourself from potential fraud. END
 TITLE: What Is the Fair Credit Billing Act? CONTENT: You may be familiar with some of the FCBA's provisions, even if you didn't realize it. The law defines what counts as a billing error, gives you the right to file disputes and creates billing-related requirements for creditors. END
 TITLE: What Is the Fair Credit Billing Act? CONTENT: How to Dispute a Billing Error\n------------------------------\nIf you notice a billing error and want to dispute it under the FCBA, you must write and mail a dispute letter to the creditor. You may want to send it by certified mail with a return receipt.\nThe letter should be mailed to a specific address for billing inquiries and must be received within 60 days of when the creditor sent the billing statement with the disputed charges. The Federal Trade Commission (FTC) has a sample letter you can use as a template. Keep copies of the letter and any additional documentation you send for your records.\nOnce the creditor receives your dispute, it has two billing cycles (up to 90 days maximum) to investigate and resolve the dispute. Depending on the results, you might have to pay none, part or all of the disputed amount.\nIf you believe your creditor isn't abiding by the FCBA, you also have the right to sue the creditor. The FCBA allows for the court to order the creditor to pay your attorney's fees and award you damages. END
 TITLE: What Is the Fair Credit Billing Act? CONTENT: How to Dispute Other Credit Card Charges\n----------------------------------------\nThere may be instances when you want to dispute a charge that isn't considered a billing error under the FCBA. Or, you may choose to dispute a charge or billing error over the phone or online rather than following the FCBA's process.\nFor instance, if you're the victim of identity theft, you may want to contact the card issuer right away so it can close the account. Depending on the circumstances, you may also want to report the fraud to the FTC's IdentityTheft.gov website.\nOr, you might want to initiate a chargeback if an item you purchased arrives damaged or doesn't match the merchant's description. Before attempting this, however, it's best to try to work out the issue with the merchant first. END
 TITLE: What Is the Fair Credit Billing Act? CONTENT: Monitor Your Credit Report for Unusual Activity\n-----------------------------------------------\nTo quickly detect unauthorized charges and billing errors, it's key to review your billing statements each month. If you use budgeting software, you could also connect and sync your accounts, letting you quickly identify new charges throughout the month.\nMonitoring your credit report is also important. With a free account from Experian, you'll receive notifications if someone applies for or opens a new credit account in your name. You can also check your credit reports after the disputes are resolved to make sure the creditor sends an update to the credit bureaus. Sometimes this can take a couple of billing cycles, so don't be surprised if your account's information isn't updated the same day. END
 TITLE: Do I Have to Notify Experian to Remove Collections? CONTENT: What to Do When You Find Out Your Debt Is in Collections\n--------------------------------------------------------\nFinding out a debt has gone into collections is never a happy experience. It happens when you've fallen behind in your payments—typically by three monthly payments or more. If this happens to you, both the late or missed payments and a collection account may appear on your credit report, and will likely have a negative effect on your credit score.\nIf you've been contacted by a debt collector, do everything you can to manage the situation proactively. By learning your rights under the Fair Debt Collection Practices Act and making an honest effort to pay back your debt, you may be able to contain the damage. Bear in mind:\n*   Before agreeing to anything, request details about the debt in writing.\n*   You have the right to ask a debt collector to stop contacting you, in writing.\n*   Ignoring calls from a debt collector won't make your debt go away. You may be able to work with a collector to find a manageable solution. Read up on the debt collection process to get familiar with how it works. END
 TITLE: Do I Have to Notify Experian to Remove Collections? CONTENT: How Long Will Collections Stay on My Credit Report?\n---------------------------------------------------\nA collection account stays on your credit report for seven years after the original delinquency. The original delinquency date is calculated based on when payment on the original account first becomes 30 days past due. Transferral of the debt to another creditor such as a collection agency doesn't reset the timeline for its removal from your credit report.\nOnce seven years have passed since the original delinquency date, the collection account should drop off your credit report automatically. If both the original debt and the collection account appear on your credit report, they will both be deleted at the same time. END
 TITLE: Do I Have to Notify Experian to Remove Collections? CONTENT: Should I Dispute a Collection Account?\n--------------------------------------\nIf the debt and the collection account in question are valid and correct, there's no basis for submitting a dispute. However, if you believe information about the collection is inaccurate, you have the right to dispute it. Here are three instances when disputing a collection account might make sense:\n*   **The collection account is not yours.** If you find a collection account on your credit report for a debt you don't recognize, contact the creditor or submit a dispute with the credit reporting agency that maintains the credit report it appears on. It could be the result of an error or identity theft. Once disputed, the company that reported the collection will investigate and, if it turns out not to be yours, the entry will be removed from your credit report.\n*   **The collection is expired.** If more than seven years have passed since the debt originally became delinquent, you can submit a dispute asking to have the entry removed.\n*   **The collection is paid but it shows a balance.** If you pay off a debt that is in collections, the collection account on your credit report should show a zero balance. File a dispute if the account continues to show an unpaid balance, since paying off a debt in collections may reflect positively to lenders and on your credit score, and may be a requirement for certain lenders. END
 TITLE: Do I Have to Notify Experian to Remove Collections? CONTENT: Recovering From Collections\n---------------------------\nSeven years may seem like a long time to carry collections information on your credit report, but while you're waiting for it to expire, focus on managing the collections process, paying off your debt and working on good credit habits. Checking your Experian credit score and report regularly can help you spot any new issues and track your progress. END
 TITLE: How Long Do Credit Report Disputes Take? CONTENT: How Does the Dispute Process Work?\n----------------------------------\nIf you discover inaccurate information on your Experian credit report, you can file a dispute quickly and easily online or by mail. (The other national credit bureaus, TransUnion and Equifax, have comparable dispute procedures of their own.)\nWhen you dispute credit report information by mail, you'll be asked to provide proof of identity, such as a copy of your photo ID and proof of address. Depending on the nature of the dispute, you may also wish to provide evidence of the inaccuracy, such as a copy of a statement or canceled check as evidence of an on-time payment. The Experian Dispute Center allows you to upload scanned documents electronically; you also can submit copies through the mail.\nIt's wise to dispute information that misstates your credit history, including but not limited to payments inaccurately reported as missed or late, or loans or other accounts reported as still open when you've paid them off or closed them.\nIt's also important to notify the credit bureaus (and the proper authorities) if you see listings for loans or credit card accounts you didn't request or open, which could be indications of credit fraud or identity theft. When reviewing your credit report, keep in mind that one or more of your creditors may go by a different name or acronym on your report than what you see on your account statement. Double-check to make sure the creditor listed is not one of your existing accounts.\nBecause credit scores are calculated using data from your credit reports, eliminating inaccuracies from your report can affect your credit scores. Eliminating inaccurate late or missing payments could mean a significant boost for your scores. It's always to your benefit in the long run to have your credit report accurately reflect your credit usage and activity. END
 TITLE: How Long Do Credit Report Disputes Take? CONTENT: Do I Need to Contact the Other Credit Bureaus?\n----------------------------------------------\nIf you discover an inaccuracy that appears on all your credit reports, you may want to contact each of the three credit reporting companies individually to dispute the information. If the lender determines that the information was in fact reported incorrectly, they are required to update or correct the information with each of the credit bureaus. So while you should only need to file a dispute with one credit bureau, it's best to contact each of them to ensure the information is updated correctly by the lender; you can submit a dispute if it is not. If a bureau's investigation confirms inaccurate reporting by an information furnisher, the furnisher must notify the other credit bureaus, which must update their files accordingly. END
 TITLE: How Long Do Credit Report Disputes Take? CONTENT: What to Do if You Disagree With the Outcome of Your Dispute\n-----------------------------------------------------------\nIf you dispute an entry on your credit report and the lender or data furnisher verifies the information is correct as reported, Experian will notify you that the lender has verified that the item should remain unchanged.\nExperian will update or remove an item in dispute if the lender or data furnisher does not respond within the time frame specified by the FCRA. However, if the data furnisher verifies the account information at a later date, it may be re-added to your credit history at that time.\nIf you disagree with the outcome of a dispute investigation, you have options, including:\n*   Communicate with the lender (or other data furnisher) directly to seek correction of any discrepancy in their records.\n*   Re-file a dispute with the credit bureau, along with additional information documenting the inaccuracy. (If you simply resubmit the same information you supplied with your original dispute, a different outcome is unlikely.)\n*   Add a statement of dispute to your credit report. This is a note that appears in your credit report when a creditor checks your credit, indicating that you disagree with an entry in the report. To add a statement of dispute to your Experian credit report, go to the Dispute Center, choose an item you've disputed, and select Add a Statement.\nContacting the credit bureaus is typically the quickest and easiest way to resolve an issue on your credit report. As a last resort, you can also consider filing a complaint with the U.S. Consumer Financial Protection Bureau (CFPB) or your state's attorney general's office. END
 TITLE: How Long Do Credit Report Disputes Take? CONTENT: Check Your Report Before Applying for New Credit\n------------------------------------------------\nCredit report disputes are typically concluded within a few weeks, but it may take a little longer for all of your credit reports to update, and for all of your credit scores to reflect the revised information. For that reason, it's always wise to check your credit reports and scores and submit any disputes three to six months before you apply for any major loans. This allows you to ensure the information being reported is accurate and gives you time to dispute any information you feel is incorrect or contact your lender directly to resolve any issues.\nYour free credit score from Experian will come with a list of the top factors that are currently impacting your score. Knowing these factors in advance will give you time to make changes to your credit accounts, which could put you in a better position to qualify for new credit with the best rates and terms. END
 TITLE: When to Dispute Credit Report Information CONTENT: Disputing Can Delay the Credit Approval Process\n-----------------------------------------------\nPeople commonly discover issues on their credit report when a lender or credit card company runs a credit check as part of a loan or card application. Perhaps your credit score isn't as high as you thought it was due to late payments, high credit card balances or other factors.\nBut what if you feel there's information in your credit report that's wrong? What if the high balances are on accounts you believe were opened fraudulently, or you're confident the late payment being reported was sent on time? You can dispute the information, but you may have to put the credit approval process on hold.\nIt's best not to dispute information on your credit report when you're trying to apply for credit or a loan, especially a mortgage. Having an account in dispute on your credit report during the mortgage application process, for example, can prevent you from being approved for the loan until the dispute process is complete. For that reason, it's a good idea to review your credit reports several months prior to making a major credit application.\nWhen you submit a dispute, the credit reporting agency will contact the information provider (typically a lender, credit card company or bank) to verify the information you're disputing. If they can't verify the information or they confirm an error, the item will be updated or removed. Information verified as accurate will remain on your credit report.\nBefore you file a dispute, it's important to know what can be disputed in the first place. Successful disputes typically involve inaccurate or incomplete information, including items such as:\n*   **Account information,** such as closed accounts reported as open, timely payments incorrectly reported as delinquent, and inaccurate credit limits or account balances.\n*   **Fraud,** including accounts opened as a result of identity theft or account balances that are the result of credit fraud.\nThere's also information in your credit report that can't be disputed at all (more on that later). END
 TITLE: When to Dispute Credit Report Information CONTENT: What if You're a Victim of Identity Theft?\n------------------------------------------\nFinding unfamiliar credit inquiries, accounts and balance or payment information on your credit report could be evidence that someone you don't know has opened accounts and run up debt in your name or that someone has gotten ahold of your credit card information and used it to make fraudulent charges on your account. If you find suspicious information on your credit report and believe you are a victim of identity theft or fraud, take these steps:\n*   File a report with your local police department or the Federal Trade Commission (FTC). IdentityTheft.gov, an FTC website, can walk you through the steps of dealing with identity theft.\n*   Contact any lenders and credit card companies reporting accounts you don't recognize. Explain that you are a victim of identity theft and ask that they close any unauthorized accounts, absolve you of responsibility for charges made and remove related information from your credit files. You can also ask that they refrain from furnishing further information about these accounts to any credit reporting agency. The FTC provides a templated letter you can use to submit your request in writing.\n*   Contact any credit reporting agency where the fraudulent accounts appear to notify them of the fraud and begin the dispute process. You may be asked to provide documentation that supports the dispute.\nIn addition to resolving disputes, Experian offers help to victims of identity theft, including temporary fraud alerts and the ability to add an extended fraud victim alert that will stay on your reports for up to seven years. Experian's Identity Theft Victim Assistance page provides more information. END
 TITLE: When to Dispute Credit Report Information CONTENT: How to File a Dispute Online\n----------------------------\nYou can file disputes by phone or mail, but the fastest and most secure way to submit a dispute is online at the Experian Dispute Center.\nTo start, click \"start a new dispute online.\" After signing in or creating an account, you'll be guided through your credit report section by section. Following the prompts, highlight the items you want to dispute and select your reasons for each dispute from the dropdown menu.\nYou can also upload supporting documents, review your dispute and submit it online. Once your dispute is finalized and submitted, the Dispute Center allows you to track its status until it's resolved. END
 TITLE: When to Dispute Credit Report Information CONTENT: Items That Are Not Disputable\n-----------------------------\nWhen filing a dispute, make sure you understand which items on your credit report can't be disputed. You have the legal right to dispute most of the information in your credit report, but there is information there that's maintained as a matter of factual record. Credit inquiries, for example, can only be disputed if they are the result of identity theft, and legitimate personal information such as your name and address cannot usually be disputed.\nInformation that is factually correct is unlikely to be removed. You may flinch at your credit card account balance, or you may have a very good reason for being late with your loan payment—but as long as these items are factually correct, they're not really disputable.\nYour credit score, while not something that's included on your credit report, is also not negotiable. Credit scores are based on the information in your credit report, and are not calculated by the same companies that maintain your reports. The items on your report that affect your credit score can be disputed, but the score itself cannot be. If you feel your credit scores need a lift, learn how those scores are calculated and take action to improve them. END
 TITLE: When to Dispute Credit Report Information CONTENT: What if You Disagree With the Outcome of Your Dispute?\n------------------------------------------------------\nIf you've filed a dispute with one (or all) of the credit bureaus and don't get the resolution you had hoped for, you can try contacting the source of the disputed information. It's a good idea to communicate with your lenders and card issuers about any issues you have anyway, as they may be willing to work with you as a customer. Be prepared to state your case clearly and have your supporting documents ready. If you agree on a resolution, your creditor can contact the credit reporting agencies to have the information deleted or updated.\nHave you recently uncovered additional information or supporting documents that might strengthen your case? You can re-submit your dispute along with any new evidence you have.\nOf course, sometimes disputes just don't go your way. If this happens, you can still add a consumer statement of explanation to your credit report to provide additional insight. Although this type of statement won't raise your credit score or change the items on your credit report, it may help a lender who is reviewing your credit file understand any extenuating circumstances that may apply. END
 TITLE: When to Dispute Credit Report Information CONTENT: How Does a Dispute Affect Your Credit?\n--------------------------------------\nFiling a dispute has no effect on your credit, although the outcome of a dispute might. If, for example, you successfully dispute a late payment because you actually paid on time, removing that entry from your credit report will likely raise your credit score. Personal information such as a name or address on your credit report won't impact your credit score, but you may still choose to reach out to the creditors reporting the information to see if they can update it. END
 TITLE: When to Dispute Credit Report Information CONTENT: Regular Reviews and Monitoring Can Help\n---------------------------------------\nYou can dispute an inaccuracy in your credit report anytime you find one. But keeping regular tabs on your credit can help you avoid the inconvenience of a stalled or postponed credit application. Monitoring your credit proactively can make it easier to catch inaccuracies and get them resolved quickly.\nDownload and review your credit reports from all three credit bureaus at least once a year to avoid last-minute surprises. You can also sign up for free credit monitoring through Experian and receive free alerts when your credit score changes or new accounts or inquiries appear on your credit report. If you plan to apply for a loan or credit in the near future, consider checking your credit now so you can resolve any issues in advance. END
 TITLE: How to Repair Your Credit CONTENT: What Is Credit Repair?\n----------------------\nA quick Google search for \"credit repair\" may convince you there's a company out there that can help you repair your credit in no time. Despite what you may hear about credit repair companies that supposedly make negative information on your credit report magically disappear, they can't do anything you couldn't do for free yourself to clean up your credit file.\nIn addition, credit repair scams are rampant, targeting distressed consumers who are lured in by false promises and who often end up worse off than they were before.\nCredit repair companies charge consumers to review their credit reports and dispute negative information that appears there. Often, you'll pay several fees, such as an ongoing monthly fee or a fee each time information is removed from one of your credit reports.\nOver time, working with a credit repair company could wind up costing you hundreds or thousands of dollars for actions you can take on your own for free. And keep in mind, credit repair companies cannot remove accurate, legitimate information from your credit report. END
 TITLE: How to Repair Your Credit CONTENT: Learning what impacts your credit scores and what's allowed on your credit report are important first steps to repairing your own credit.\n### Learn What Affects Your Scores\nWhile there are many credit scoring models, similar factors can impact all your scores. In order of importance, these are:\n*   **Payment history**: This includes whether you've paid your bills on time, defaulted on accounts or had accounts sent to collections. Public records, such as bankruptcies, also fall under the payment history category. A long history of on-time payments is best for your scores.\n*   **Credit usage**: If you're currently using a large portion of your available credit limits, that could hurt your scores. Having low credit usage, or credit utilization rate, is best.\n*   **Credit mix**: Experience managing different types of credit accounts, such as installment loans (including mortgages, car loans and student loans) and revolving credit accounts (including credit cards and credit lines), is usually better for your scores than having experience with only one type of account.\n*   **Age of accounts**: Managing credit over a long period can help improve your scores. The age of your oldest account and the average age of all your accounts can affect your scores.\n*   **Recent applications**: Credit applications can lead to hard inquiries, which may temporarily knock your credit scores down a few points. Multiple hard inquiries can increase the impact, although there's leeway for consumers who are rate shopping for certain types of loans.\nKnowing these factors can help you focus your efforts on paying your bills on time, not using too much available credit and only applying for new credit when you really need it as you try to improve your scores.\nWhen you're trying to repair your credit, usually you're also looking for derogatory marks (in other words, negative information) that are negatively impacting your scores. This can include:\n*   Late payments\n*   High balances\n*   Defaulted accounts\n*   Collections accounts\n*   Charge-offs\n*   Repossessions\n*   Foreclosures\n*   Bankruptcies\nOnce you spot a derogatory mark, you'll need to determine whether it's information you should dispute or it's accurate and belongs on your report. Credit bureaus such as Experian monitor reports closely to ensure information is deleted within the time frames specified by the Fair Credit Reporting Act. You should, however, dispute any information you believe is inaccurate.\n### Follow These Three Steps\nOnce you've got a grasp of how credit scoring and reporting work, here are three steps you can take to repair your credit.\n1.  **Check your credit reports.** You can request a free copy of your credit report from each of the three bureaus once every 12 months at AnnualCreditReport.com. You can also review your Experian credit report for free at any time by creating an account. Additionally, Experian offers a free FICO® Score☉ based on your credit report, which you can use to monitor changes in your score.\n2.  **Dispute negative information that you believe shouldn't be on your report.** You can file the dispute online, by mail or over the phone.\n3.  **Review your credit reports regularly for signs of fraud or incorrect information.** Continue to monitor your credit reports to make sure there are no signs of identity theft resulting in inaccurate information and that no new errors appear.\nWhen you're working to repair your credit, keep in mind that disputed items only need to be removed or updated if they are:\n*   **Inaccurate.** This includes accounts that aren't yours or late payment marks when you paid the bill on time.\n*   **Untimely.** Accounts or information that should have been removed from your credit reports because of their age.\nAfter you file a dispute, the credit bureau must forward it, along with any documentation you provide, to the source of the information. The source, usually a lender, must then review your dispute and either verify, update or delete the item you're disputing. END
 TITLE: How to Repair Your Credit CONTENT: How to Get More Help With Your Credit and Debt\n----------------------------------------------\nIf you're looking for help with your credit or are having trouble managing your bills, you could reach out to a nonprofit credit counseling organization. These companies offer guidance on a wide range of financial issues, and you may be able to start with a low-cost or free initial consultation.\nThe National Foundation for Credit Counseling (NFCC) can connect you with reputable partner agencies that meet the NFCC's standards and requirements. Depending on where you live, you could meet with a trained counselor in person, or arrange an online or phone meeting.\nThe counselor can offer guidance on your personal finances and show you steps you can take to improve your credit. If you're struggling to afford your bills, the counselor may be able to negotiate lower monthly payments with your creditors and set you up with a debt management plan. While this could negatively affect your credit scores in the short term, the plan can help your credit over time as you get better control of your debts. END
 TITLE: How to Repair Your Credit CONTENT: How to Build and Maintain Good Credit\n-------------------------------------\nWhile removing negative information from your credit history could increase your credit scores, it's only half the battle. You'll also want to build and maintain positive information on your credit reports. You can do that by:\n*   Making on-time payments\n*   Setting up automatic payments to avoid accidentally missing a payment\n*   Knowing and trying to lower your credit utilization rate\n*   Paying down debt\n*   Only applying for credit when you need it\nIn addition to repairing, building and maintaining your credit, you may also be able to improve your FICO® Score based on your Experian credit report with Experian Boost™† . By connecting the bank account(s) you use to pay your utility and telecom bills, you can add positive payment information to your credit reports. The service is free, and you choose which information to add to your credit file.\nRepairing and improving your credit can take time and effort, but working hard to keep your credit in good shape can help you reach your financial goals. END
 TITLE: Can Credit Repair Companies Remove Late Payments? CONTENT: Should I Hire a Credit Repair Company to Remove Late Payments?\n--------------------------------------------------------------\nCredit repair companies cannot have accurately reported late payments deleted from your credit reports. If a late payment was reported correctly to one of the three main credit bureaus (Experian, TransUnion and Equifax), that late payment will not be removed.\nCredit repair companies don't have any backdoor access to the credit bureaus or unique abilities to remove late payments. If you choose to hire a credit repair company, which can cost hundreds or thousands of dollars, be aware that they cannot do anything to remove information from credit reports that you can't do yourself for free.\nGenerally speaking, the only reason a credit reporting agency or a data furnisher, such as a bank, would remove a late payment from your credit report is that it is either incorrect or has reached its credit reporting time limit.\nBefore you pay a credit repair company to attempt to have your late payments removed, ask yourself a few questions:\n*   Are the late payments accurate?\n*   Has seven years passed since the date of the late payment?\n*   Does my lender have a record of these late payments?\nIf you answered \"yes\" to these questions, then it's unlikely you'll be able to have the late payments removed, whether you hire a credit repair company or attempt to do it yourself. END
 TITLE: Can Credit Repair Companies Remove Late Payments? CONTENT: How Long Do Late Payments Stay on Your Credit Report?\n-----------------------------------------------------\nLate payments can remain on your credit reports for up to seven years from the date of the delinquency, according to the Fair Credit Reporting Act (FCRA). If the account with the late payment remains open, just the late payment will be removed after this time period. If the account became late, was never brought current and subsequently was charged off as a loss and sold to a collection agency, all of the late payments, the charged-off account and the collection will be deleted seven years from the date of the first late payment. If you have paid off and closed the account, the late payment will be removed from your credit report seven years after it was first reported, but the account itself will remain 10 years from the closed date.\nOpen accounts that are in good standing and include no late payments may stay on your credit report indefinitely, depending on the individual credit bureau's policy. Experian, for example, will remove positive accounts up to 10 years after the account was closed. That means your credit history benefits from your clean payment record: It will reflect your positive payment history for an extra three years over accounts that have late payments. END
 TITLE: Can Credit Repair Companies Remove Late Payments? CONTENT: How to Dispute Inaccurate Late Payments Yourself\n------------------------------------------------\nThe FCRA gives you the right to challenge or \"dispute\" information on your credit reports that you believe is incorrect. Unlike hiring a credit repair company, disputing information on your own is free.\nIf you believe your credit reports hold incorrect information, late payments or otherwise, you can file a dispute with each of the credit bureaus or contact the company that furnished the allegedly incorrect information and ask them to have the information removed.\nIf you dispute credit report information with the credit bureaus, they will investigate your claim and then remove, update or leave the information on your credit report depending on the outcome of the investigation.\nTo dispute a late payment on your Experian credit report, go to the Experian [Dispute Center](;phx=disable&op=FRCD-ASK-ART-102-MDL-XXXXXXX-XX-EXP-VMAC-DIR-816XXX-39030X-XXXXX). END
 TITLE: Can Credit Repair Companies Remove Late Payments? CONTENT: The Bottom Line\n---------------\nIf you're tempted to hire a credit repair company to dispute late payments on your behalf, keep in mind that their fees can run into the hundreds or thousands of dollars. Credit repair companies are also not legally allowed to guarantee that they can have information from your credit reports deleted. And if the late payments are accurate, they will not be removed by the credit repair company or anyone else. END
 TITLE: How Do Credit Repair Companies Work? CONTENT: What Is Credit Repair?\n----------------------\nCredit repair is when a third party, often called a credit repair organization or credit services organization, attempts to get information removed from your credit reports in exchange for payment. These companies are for-profit and their services are marketed as being able to help people improve their credit. Credit repair is legal at the federal level and in almost every state (in Georgia, credit repair is a misdemeanor).\nSome credit repair companies suggest their services are designed to help consumers remove inaccurate or unverifiable information from their credit reports. In reality, however, many credit repair companies are simply trying to get negative, but accurate, information removed from credit reports before it would naturally fall off a credit report. END
 TITLE: How Do Credit Repair Companies Work? CONTENT: The Credit Repair Organizations Act\n-----------------------------------\nThe federal Credit Repair Organizations ([CROA](;num=0&edition=prelim)) Act not only defines what a credit repair organization is but also how these companies must operate. Enacted in 1996, CROA clearly articulates what credit repair companies must do, and must not do, to remain compliant with federal law.\nPractices that are not allowed under CROA include:\n*   Advising credit repair customers to make false statements to credit reporting agencies\n*   Advising credit repair customers to change their identification to prevent the credit bureaus from associating them with their credit information\n*   Charging credit repair customers any fee for services that have not been fully rendered\n*   Guaranteeing that they can remove information from their credit repair customer's credit reports\nThe CROA also requires credit repair companies to notify their customers of the following:\n*   They have the right to dispute their own credit report information for free\n*   They can sue the credit repair company if they violate CROA\n*   That while the credit bureaus must maintain reasonable procedures to maintain the accuracy of credit information, mistakes may occur\nCredit repair companies are not allowed to hide the above notices within the language of their contracts. These disclosures and others must be provided in a separate standalone form. And finally, credit repair companies are not allowed to force or entice you to sign a waiver whereby you would give up some or all of the aforementioned rights. Any attempt to do so would be a violation of the CROA. END
 TITLE: How Do Credit Repair Companies Work? CONTENT: Ultimately, credit repair companies communicate on your behalf either with the credit bureaus or with the companies that reported or \"furnished\" your credit information to the bureaus. These data furnishers are almost always debt collectors or financial services companies, like banks and credit card issuers.\nThe intent is to have the credit bureaus or furnishers either delete the credit information altogether or modify it in some way that's more favorable to the consumer. Communications by credit repair companies can happen via the internet, phone or U.S. mail. The U.S. mail has historically been the method that's preferred by credit repair companies for several reasons.\nMailing a few letters to the credit bureaus might sound unsophisticated, but it's the approach that works with how credit repair companies tend to operate. Some credit repair companies employ a process called \"jamming,\" which involves sending repetitive and often frivolous letters to the credit bureaus and their data furnishers.\nThe theory is if a credit repair company can send a large volume of dispute letters challenging the same item over and over, that somewhere along the way either a credit bureau, lender or debt collector will fail to process the dispute within the 30-day period specified by the Fair Credit Reporting Act (FCRA), resulting in the account being deleted. END
 TITLE: How Do Credit Repair Companies Work? CONTENT: How Much Does Credit Repair Cost?\n---------------------------------\nCredit repair companies generally charge one of two ways. The first is a garden-variety subscription service in which the credit repair company charges your credit card at the end of the month for services performed during the previous month. Subscriptions for credit repair generally fall somewhere between $50 and $100 per month, although there can be outliers. With the subscription fee structure, the credit repair company has a financial incentive to keep you as a paying customer as long as possible.\nThe second method of payment for credit repair is called \"pay per delete.\" With pay per delete, the credit repair company only charges you when an item on your credit report is actually deleted pursuant to their efforts. The theory with pay per delete is that it keeps the customer happy because they are only paying for tangible results, and the credit repair company stays on the right side of the CROA because they don't charge their customers until after results have occurred. END
 TITLE: How Do Credit Repair Companies Work? CONTENT: Does Credit Repair Work?\n------------------------\nWhile some credit repair companies claim to have deleted millions of negative credit entries, there are no reliable statistics available regarding the effectiveness of credit repair services. There are also no statistics about credit repair's impact on their customers' average credit scores, how many of the disputes they file result in deletion, or the average price paid by a credit repair customer.\nBecause there is nothing a credit repair company can do that you can't do for yourself, it's better to ensure the accuracy of your credit reports on your own. The process is free, and has always been. Also keep in mind that accurate negative information will automatically be removed from your credit reports once it's seven to 10 years old. END
 TITLE: How to Check if Something Changed on Your Credit Report CONTENT: How Often Does My Credit Report Update?\n---------------------------------------\nThe bulk of your credit reports consists of credit usage and payment information creditors furnish to the national credit bureaus (Experian, TransUnion and Equifax), typically on a monthly basis. Each lender updates the bureaus according to its own schedule: Some lenders may issue their updates at the beginning of the month, while others may wait until the end of the month. Additionally, each may update one credit bureau one day, and the others a few days later.\nDepending on the number of loans and credit card accounts you have, and how your payments and card purchases sync with the lenders' update schedules, your credit reports at each credit bureau change continually. That means it's perfectly normal that your credit reports at each bureau are not exactly the same.\nThe best approach to tracking your credit reports is to obtain a report from each credit bureau, which you can for free at AnnualCreditReport.com. Study each carefully to make sure all the information it contains is accurate. In the unlikely event you discover information you believe to be inaccurate, such as a reported late payment that you remember making on time, go back to the lender on whose account the information appears and ask them to update it. You can also file a dispute with the relevant credit bureau, supply any backup information they may request, and give them a chance to investigate and update your report if necessary.\nAfter this initial review, you should continue to check your credit regularly, focusing on the information that has changed. As new data is added between reporting periods, your credit reports maintain a true reflection of your credit activity. Credit scores calculated using those reports will give lenders an accurate picture of your ability to manage new credit in the future. END
 TITLE: How to Check if Something Changed on Your Credit Report CONTENT: Check Credit Report Updates With Experian's \"See What's Changed\" Feature\n------------------------------------------------------------------------\nExperian's free credit report service provides updates on your Experian credit report every 30 days. The \"See what's changed\" function on the app makes it easy to spot new information in your report. It's a more user-friendly option than the traditional practice of comparing your current credit report to the last one you checked to identify changes in your data.\nTo view the \"See what's changed\" information for your Experian credit report, click the Reports icon at the bottom of the Experian home screen on the app. Then click the \"See what's changed\" button marked with a yellow bell icon.\nThe \"See what's changed\" feature summarizes adjustments in your overall debt level, modifications to individual accounts, the opening or closing of new loans or credit card accounts, and any new inquiries or credit checks related to new applications for loans or other credit.\n\"See what's changed\" also reports increases or reductions in your total debt levels, changes in your total credit card borrowing limit and, if applicable, the addition or removal of collections accounts, foreclosures and bankruptcy filings.\nEach entry in the \"See what's changed\" list includes a notation of whether those changes \"could help\" your overall credit, \"could harm\" your credit, or \"could help or harm\" your credit standing. Click any entry to expand it for a more detailed explanation. END
 TITLE: How to Check if Something Changed on Your Credit Report CONTENT: What to Look for When You Review Your Credit Report\n---------------------------------------------------\nWhen reviewing your \"See what's changed\" information, or comparing full credit reports the old-fashioned way, it's normal to see changes in account balances and updates to your payment history. Each month you make a payment on a mortgage or auto loan, for example, a change in balance on that loan will be duly noted. Fluctuations in your credit card balances are also normal, as long as they track with your purchase and payment history. The things to look out for are changes you don't understand, such as:\n*   **Credit inquiries from unfamiliar sources:** If you haven't applied for a new loan, credit card or other credit (such as in-store financing on a new cellphone or laptop), or agreed to a background check or credit screen from a landlord, unexplained credit inquiries could indicate criminals are trying to obtain credit in your name.\n*   **New accounts you don't recognize:** The appearance of a new loan or credit card you didn't open is an even more serious indicator of potential fraud. It could mean a criminal has successfully borrowed money using your personal information. If so, they won't be paying back that debt, and their missed payments could harm your credit score—at least until you notify the lender and the credit bureaus of the fraud.\n*   **Accounts in collection:** When a creditor gives up on trying to get repayment on a debt and sells the debt to a collection agency, that's recorded as a serious negative event in your credit report—one that can cause a significant drop in your credit scores. Sometimes collections indicate nonpayment on accounts opened fraudulently in your name. Other times they may indicate debts, such as hospital bills unpaid by insurance, which you may not have even known you incurred. In any case, following up with the collection agent may help clear up the issue.\nRoutinely checking your credit scores and credit reports is a good habit for tracking improvements in your credit standing, flagging downturns in that standing, and detecting unauthorized activity that could indicate fraud or identity theft. END
 TITLE: Can a Personal Loan Hurt My Credit Score? CONTENT: When you apply for any type of credit, including a loan or credit card, the lender typically requests access to your credit report so it can assess the risk of nonpayment based on your credit history. That request for access leads to a hard inquiry on your credit report, which will remain there for up to two years. A hard inquiry can trigger your credit scores to drop slightly, but they're likely to recover within a few months to one year—and the impact will decrease with time as you continue to make on-time bill payments and show other positive credit behavior.\nA personal loan can also hurt your credit if you wind up missing even a single monthly payment. A missed payment will have a much more significant impact on your credit than the other factors, since payment history accounts for 35% of your FICO® Score☉ . Even if you're able to stay on top of your personal loan payments, though, they could stress the rest of your finances and put you at greater risk of credit score harm caused by late payments on your other accounts.\nFinally, the added debt from a personal loan contributes to the \"amounts owed\" category in FICO® Score calculations, which accounts for 30% of your FICO® Score. Merely owing money doesn't mean you're considered a risky borrower—and it won't sink your score—but high balances on credit accounts and the presence of loans with large balances left to pay off can negatively impact your credit. Additionally, while your debt-to-income ratio (DTI) isn't included in credit score calculations, a high DTI can make it difficult to qualify for certain types of loans, like mortgages, where lenders look specifically at DTI when making credit decisions. END
 TITLE: Can a Personal Loan Hurt My Credit Score? CONTENT: Ways to Limit a Personal Loan's Negative Credit Impact\n------------------------------------------------------\nIf you ultimately decide that a personal loan is the right choice for your finances, there are steps you can take to limit its effect on your credit score:\n*   **Apply for loans within a two-week period.** The FICO® Score algorithm will recognize that you're rate shopping, or comparing rates across multiple loans within the same category, if you submit applications within a specific time frame. That period is 14 days for older FICO® Score versions and 45 days for newer versions. To be safe, submit all loan applications within the 14-day time frame, since lenders may use an older version of the FICO® Score to assess your creditworthiness.\n*   **Make all payments on time.** Paying every bill on time is essential to maintaining a strong credit score. The same is true for your new personal loan. If 100% of your personal loan payments are made on time, the loan can help future lenders see that you can be trusted to follow through on your financial obligations.\n*   **Pay off the loan in full.** In addition to making on-time payments, it's important to make every payment until the load is paid off. Paying off a personal loan early won't necessarily improve your credit score, however. Once paid off, the account will be considered closed, and your score won't benefit as much from your on-time payment history as it would if the account were still open and being managed responsibly. END
 TITLE: Can a Personal Loan Hurt My Credit Score? CONTENT: How a Personal Loan Could Help Your Credit\n------------------------------------------\nDespite the risks, your personal loan account may wind up helping you improve your credit. First, it adds positive payment history to your credit report, assuming you regularly pay on time. It can also add to your credit mix, especially if you previously had only credit cards and a personal loan is the first installment loan in your name. Credit scoring models reward borrowers who are able to capably oversee multiple types of credit.\nA debt consolidation loan can also help your credit. This is a type of personal loan that combines multiple debt balances into one loan, ideally at a lower interest rate. It may also reduce your credit utilization, which is an important scoring factor that compares your revolving credit balances with your credit limits. High balances can drive up your credit utilization and hurt your credit, but your credit utilization on those cards will decrease to 0% when you transition those debts to an installment loan with a debt consolidation loan. That can have a positive effect on your credit score. END
 TITLE: Can a Personal Loan Hurt My Credit Score? CONTENT: Deciding on a Personal Loan\n---------------------------\nNegotiating the pros and cons of getting a personal loan for your credit is an important part of the decision-making process. You may decide that it's not the right time to add a hard inquiry to your credit report, or you may realize that the added monthly debt payment won't work with your current monthly budget.\nOnce you've decided to apply for a personal loan, choosing the right one based on interest rate, monthly payment and other features is the next step. When you start paying down a personal loan, keep in mind that it's an opportunity to pick up positive credit history, and it's in your power to make the loan work for you. If you need help finding a personal loan that works for you, Experian CreditMatch™ can pair you with personalized loan offers. END
 TITLE: When Should My Child Get a Credit Card? CONTENT: When It's Smart to Get a Credit Card for a Child Under 18\n---------------------------------------------------------\nBefore you imagine the potential pitfalls of an adolescent running amok armed with your credit card account at their disposal, let's take a look at the top five reasons you may want to consider letting your little one start swiping:\n1.  **Credit history**: In general, most minors don't have a credit report or score yet; starting them with one now by adding them to your account can set them up for future financial opportunities. Your responsible credit usage can pave the way for better loan rates, approval for credit cards with generous rewards or even allow them to finance their first car without you cosigning.\n2.  **Safety**: Credit cards offer more consumer protections than you can find with your typical debit card or cash. When it comes to purchase protection or defense against fraud, federal laws and credit card issuer policies make credit cards safer to use online and at the register.\n3.  **Education**: When your kids learn to ride a bike, you can probably expect more skinned knees if they don't have you around to help them steer. Likewise, parental guidance with credit cards can help kids learn to manage credit, minimize the risk of credit damage and ward off bad habits. You can teach them the importance of paying balances on time, keeping credit utilization low and how to spend within their means. It's better that they get an early start learning about credit cards' often-steep annual percentage rates (APR) than learn the hard way how quickly debt and interest charges can build up down the road. Some issuers, like American Express, let you set lower credit limits for authorized users and track their spending so you can really stay on top of your child's charges.\n4.  **Emergencies**: If your child has a cellphone, you've probably found some peace of mind knowing they can contact you in case of an emergency. With a credit card in their pocket, you can feel even more confident they won't get stranded without gas money or not have enough cash for lunch. It's wise to set rules on what exactly constitutes an emergency, and teach them to build their own emergency fund to immediately pay off any surprise expenses.\n5.  **Rewards**: Though not exactly pertinent to your kids' finances, it can be a nice perk to earn extra on a rewards card via their spending. After all, your children are gaining invaluable financial education and credit history—more travel miles or cash back just makes the arrangement more valuable for you too. END
 TITLE: When Should My Child Get a Credit Card? CONTENT: How to Decide if Your Child Is Ready for a Credit Card\n------------------------------------------------------\nBefore calling your credit card issuer and adding your kid to your account, determine if they're ready for the responsibility. Ask yourself these questions:\n*   **Can they follow your rules?** First and foremost, you'll want to know if you can expect them to abide by the limitations you put on their credit use. Figure out a few things in advance, such as whether they'll pay the bill themselves or reimburse you for their spending, where they can use their card and what they're allowed to buy. Determine the consequences for breaking your agreement, overspending or missing a payment. If your child isn't ready to meet your requirements (or breaches them when given the opportunity), it may be wise to wait a little longer.\n*   **Do they understand credit cards?** Your kids don't need to be financial geniuses to have a card with their name on it, but a basic understanding of interest rates, balances and credit limits is critical. Their past experience with cash and debit cards can be a good starting point as they adjust to being responsible with the additional spending power in their pocket. If they know how their actions can affect their credit (and yours) and why that's important, they may be ready.\n*   **Is** **_your_** **credit ready?** Authorized users can benefit from the primary account holder's credit history—but they have the potential to damage your credit if spending goes unchecked. An authorized user's excessive purchases can easily overburden the cardholder's finances, which risks increasing the account's credit utilization and potentially causing payments to be missed. In either case, your credit scores could be dragged down. If you're planning on a major financial move such as buying a home, you might prefer to avoid taking a chance on credit score damage. END
 TITLE: When Should My Child Get a Credit Card? CONTENT: Credit Card Age Requirements for Children\n-----------------------------------------\nSome credit card issuers have their own age restrictions for adding minors to your account, along with a few other caveats. To help, we've compiled a list of the age restrictions for the major credit card issuers:\nFor the account to affect your children's credit, the issuer must report the authorized users to one or more of the three major credit bureaus (Experian, TransUnion and Equifax). Each company on the list above reports authorized users to the credit bureaus, but some issuers have limitations. For example, American Express does not report credit for authorized users under 18. Be aware of smaller banks that may not report to all three bureaus.\nIf the restrictions on your current account don't suit your family's needs, consider applying for a new card. END
 TITLE: When Should My Child Get a Credit Card? CONTENT: The Bottom Line\n---------------\nCredit cards require a great deal of responsibility, and not every child is ready for it right away. A mature tween may be in a better place to navigate a credit account than some high school seniors—or even some adults, for that matter. If you can lay the groundwork for a healthy relationship with credit early on, your kids (and their wallets) will thank you later.\nYou can also take the time to teach your kids about credit reports and credit scores, and the importance of keeping an eye on them. With free credit monitoring from Experian, you'll have access to your Experian credit report and your FICO® Score☉ 8 based on Experian data as well as a suite of tools that helps you maintain healthy credit. END
 TITLE: 8 Ways to Build Credit If You’re New to the U.S. CONTENT: How Credit Works in the U.S.\n----------------------------\nCredit can influence many aspects of life in the United States. Your credit history and scores can impact your eligibility if you want to take out a loan or open a credit card, along with the fees and interest you'll pay.\nAdditionally, your credit (or lack thereof) can impact many non-lending decisions. These can include your ability to rent a home, get a job or promotion, how much you pay for insurance and whether you need to pay a deposit to open a new utility account.\nThere are several key components to the credit system in the United States:\n*   **Consumer** **credit bureaus** maintain records on consumers' experience with credit accounts. The three major consumer credit bureaus are Experian, TransUnion and Equifax, and they all create consumer credit reports. Credit reports are primarily built on data the credit bureaus receive from other companies, usually lenders, and your credit reports may differ depending on whether the company sends information to one, two or all three credit bureaus.\n*   **Credit scoring companies** such as FICO and VantageScore create scoring models that use the information in your credit report to calculate a credit score. Most credit scores range from 300 to 850, with higher scores meaning a lower risk in the eyes of potential lenders because it shows that you've managed credit responsibly in the past. Organizations use credit scores to quickly evaluate a person's creditworthiness. Many major financial institutions also create custom scores for their potential and current customers.\n*   **Creditors**, including lenders and credit card issuers, use credit reports and scores to help them make decisions about whether to offer someone a credit card or approve a loan application. If you don't have a credit report or you have a low credit score, it can be more difficult and expensive to take out a loan or open a credit card.\nUnfortunately, even if you had credit in your home country, you may need to start over in the U.S. There are several ways to do this, including opening certain types of accounts that Americans often use to first build their credit. END
 TITLE: 8 Ways to Build Credit If You’re New to the U.S. CONTENT: 8 Ways to Start Building Credit in the U.S.\n-------------------------------------------\nHere are actions that you may be able to take to establish and build credit once you arrive in the U.S.\n### 1\\. Become an Authorized User on Someone Else's Credit Card\nIf you have a friend or relative in the U.S. who has a credit card, they may be able to add you as an authorized user on their account. Once you're an authorized user, the credit card issuer might report the account to the credit bureaus under your name. Ask before getting added because some issuers might not report authorized users.\nYou may also receive a card that's tied to the account that you can use to make purchases (if the primary cardholder agrees), but you don't have to use it to build credit. Your credit report will reflect how the primary cardholder manages the account, so make sure they always pay their bill on time and maintain a low balance.\n### 2\\. Open a Secured Credit Card\nAnother option is to open a credit card on your own. Certain cards may be difficult to qualify for if you don't yet have a credit history, but you may still have options. With a secured credit card, for example, you'll send the card issuer a refundable security deposit. You may send them $200 to get a card with a $200 credit limit, for instance. You still need to make monthly payments on time to avoid hurting your credit, but the deposit limits the card issuer's risk, which is why it's easier to get approved for secured cards.\n### 3\\. Get a Credit-Builder Loan\nLenders offer credit-builder loans specifically to help people build credit. Once you're approved for the loan, the money may be set aside in a locked savings account. You then repay the loan with interest, and the lender reports your payments to the credit bureaus. When you're done repaying the loan, the savings account gets unlocked, and you'll have access to the funds.\n### 4\\. Use a Lending Circle\nAnother option is to get a no-interest loan through a community organization's lending circle. Each month, all the members make a loan payment, one member receives the full loan amount and the organization reports the loan activity to the credit bureaus. Mission Asset Fund, a nonprofit organization, facilitates lending circles and has a database you can use to search for additional options in your area.\n### 5\\. Look for Accounts That Use Alternative Underwriting Methods\nSome lenders and credit card issuers approve new accounts based on information that doesn't come from the credit bureaus. For example, with certain cards, you may be able to connect your checking account and get approved based on your banking history. (You will need to be a legal permanent U.S. resident and have a U.S. phone number and email address.) These may be good options once you establish bank accounts in the U.S.\n### 6\\. Try to Use Credit From Your Home Country\nIn some cases, you can use credit from your home country to quickly get credit in the U.S. International banks and credit card issuers, including American Express, BNP Paribas and HSBC have programs for customers moving to the U.S. If you have an established relationship with an international financial institution, see if it has any recommendations or options. Also look into Nova Credit, a U.S. company that helps people use their established credit from select countries to qualify for U.S. credit cards, loans and housing.\n### 7\\. Ask Your Employer and Local Community Banks and Credit Unions\nLarge employers may partner with financial institutions to help their foreign workers get access to banking and credit services. Ask your human resources department if any such resources exist. Also, ask local community organizations and fellow immigrants about community banks or credit unions that may have special programs.\n### 8\\. Add More Accounts to Your Credit Reports\nSome types of payments don't commonly get reported to the credit bureaus, including rent. However, you may be able to sign up for a rent reporting service and use your rent payments to establish or build your credit. You can also use the free Experian Boost™† tool to connect your bank account and add your utility, telephone and popular streaming service bill payments to your Experian credit report. END
 TITLE: 8 Ways to Build Credit If You’re New to the U.S. CONTENT: Build Positive Credit\n---------------------\nAfter establishing credit in the U.S., you'll want to focus on building a positive credit history. Doing so can help you qualify for more, better and lower-cost financial products.\nBuilding good credit can take time, partially because the age of your credit history is a scoring factor. But here are a few simple practices you can follow:\n*   **Pay your bills on time.** If possible, pay all your bills on time. If you miss a payment, try to bring your account current within 30 days. Falling 30 or more days behind can lead to a late payment in your credit history, which will hurt your credit scores.\n*   **Don't use all your available credit.** If you have a credit card, using a small portion of your account's credit limit is best for your credit scores. Only using small amounts can also make it easier to pay your bill in full, which will help you avoid paying interest.\n*   **Apply for credit sparingly.** You may want to open a few accounts when you're first building credit. But once you're established, limiting how many applications you submit can help you maintain a good score.\nThe Experian blog is filled with articles on credit reporting and credit scores. Continue learning about the intricacies of credit and how specific actions may help or hurt your credit. END
 TITLE: 8 Ways to Build Credit If You’re New to the U.S. CONTENT: Check and Monitor Your Credit\n-----------------------------\nYou can also monitor your Experian credit report for free. The program sends you real-time alerts, helping you stay on top of your credit and respond if there's any suspicious activity. You'll also get explanations about the different factors that are impacting your unique credit history and suggestions for how you can improve your credit. END
 TITLE: What Is a Prepaid Card? CONTENT: How Do Prepaid Debit Cards Work?\n--------------------------------\nWhile prepaid cards look a lot like traditional credit cards or debit cards—and many credit card issuers, like Visa, American Express and Mastercard, offer them—the similarities end there. The biggest difference is that a prepaid card must be loaded with funds before you can use it.\nPrepaid cards are sold at retailers like supermarkets and gas stations, and you can also order them online or get them at participating banks. You can specify the amount of money you want loaded on the card, though there may be daily, weekly or total limits to the amount you can add (these limits may be waived when you receive a direct deposit of funds to the card). Cards may be for one-time use, like gift cards, or reloadable.\nUnlike a credit card, you don't need to pass a credit check to receive a prepaid debit card. You won't pay interest on purchases, because they'll be debited from the amount you've added to the card. These cards don't allow you to carry a balance or to pay off your purchases over time.\nPrepaid cards also come with multiple fees to watch out for, such as fees for activating the card and loading and spending money, which you may not find on a debit or credit card. You could also pay fees for monthly maintenance, some ATM withdrawals and international transactions. END
 TITLE: What Is a Prepaid Card? CONTENT: Do Prepaid Cards Build Credit?\n------------------------------\nAnother difference between prepaid debit cards and credit cards? Prepaid cards will not help you build credit. In this way, they're more like traditional debit cards associated with a bank account. Your payments will not be recorded on your credit report, and your use of the card will not affect your credit score.\nThere may be other reasons to get a prepaid debit card, such as limiting spending, giving a child an allowance or enjoying the convenience of paying with a card rather than cash. But if you have no, poor or fair credit and you'd like your card usage to help improve it, consider an alternative to a prepaid card, such as a secured credit card.\nSecured cards function like a regular credit card, except that you are required to make a deposit, which typically becomes your credit limit. Unlike a prepaid debit card, you can't use that deposit to pay for purchases or your bills; it's essentially a safety net for the lender in case you stop making your card payments. In most cases, the credit card issuer reports your secured card's activity to the credit bureaus, so limiting purchases and paying off your balance in full each month by the due date will help you improve credit. Your secured card's payment history and credit utilization will be reflected on your credit report and score, unlike a prepaid card, and will help you rebuild or establish a credit history. Eventually, you may get your deposit back or be able to transition to an unsecured card. END
 TITLE: What Is a Prepaid Card? CONTENT: How to Choose a Prepaid Card\n----------------------------\nIf you decide a prepaid debit card would work well for you, first consider how you plan to use it. Depending on how you want to load it with money—by direct deposit only, for example, or with cash—search for cards that make that method as easy and low-cost as possible. Also identify whether you need to use the card for ATM withdrawals or online bill payments, and check what fees you will be charged for those features.\nFor example, some prepaid cards charge a high fee for ATM use, but will waive those fees at machines that belong to a certain network. Other prepaid cards will waive monthly fees for those who regularly use direct deposit, or who load a certain amount of funds each month.\nFinally, check for additional prepaid card features that may be valuable. For instance, some prepaid cards allow you to order additional cards for authorized users and set limits on their use. This can be useful when you'd like to give other family members the ability to use the card up to a certain limit.\nOne of the lowest-fee prepaid debit card options available is the Bluebird® American Express® Prepaid Debit Account, which charges no fees for monthly maintenance, foreign transactions, cash reloading at Walmart locations, in-network ATM withdrawals, card transactions or inactivity. For parents interested in overseeing how their kids spend money, Greenlight offers a prepaid card that comes with an app for both parents and kids to monitor balances and spending patterns. It comes with a monthly fee. END
 TITLE: What Is a Prepaid Card? CONTENT: How to Use and Reload a Prepaid Card\n------------------------------------\nSince they're typically part of a payment network such as Visa, Mastercard or American Express, prepaid cards can be used to make purchases at any merchant that participates in that network. Each time you use a prepaid card, it will authorize a purchase up to the amount of funds remaining on the card, but not more. If you don't have sufficient funds loaded on the card to make a purchase, the transaction will be declined.\nPrepaid cards generally can also be used to withdraw cash from ATMs, but fees may be charged. To use your prepaid card at an ATM, you'll create a four-digit personal identification number (PIN), like you would with a debit card. You can also use your PIN to make certain transactions that require a debit card. Additionally, some prepaid cards allow you to make online bill payments.\nTypically, you can load a prepaid card using the following methods:\n*   Cash\n*   Debit card\n*   Transfer from checking or savings\n*   Direct deposit from your employer\n*   Check\n*   Transfer of government benefits, including a tax refund.\nIt's less likely you'll be able to load a prepaid debit card using a credit card. END
 TITLE: What Is a Prepaid Card? CONTENT: Making the Best Use of a Prepaid Card\n-------------------------------------\nWhile prepaid cards can be convenient in certain situations, such as for giving a teen an allowance and introducing them to banking, prepaid card fees can make them a pricey choice.\nBefore opting for a prepaid card to receive government benefits or direct deposit, make sure you clearly understand what fees you'll be charged and how you can cheaply and easily reload the card if you want to. A secured credit card, or skipping the prepaid card and opting for direct deposit to a bank account, may be better choices. END
 TITLE: Credit Mistakes to Avoid When You Are Young CONTENT: 1\\. Waiting to Build and Establish Credit\n-----------------------------------------\nNo one comes into the world with good credit. In fact, until you begin using credit, you won't have a credit report or score. For most, establishing credit means starting small with a low line of credit that may require a security deposit. And if you think about it, that's not a bad place for a young person to start. You get a card to use for emergencies or to cover expenses without too much risk of running up a giant balance.\nMore importantly, you get the opportunity to learn how credit works—how to manage an account, make timely payments, mind your credit limit and avoid overspending. Play your cards right, and you'll graduate with solid credit to help launch you into independent adulthood.\nHere are two ways to establish credit when you're young:\n*   **Get added as an authorized user.** One place to start is to be added to a parent's or loved one's credit card account as an authorized user. Apple now allows parents to add children ages 13 and older to their Apple Card Family accounts as \"participants\" with optional spending limits; family members 18 and older may be added as co-owners on the account. The Apple Card isn't the only card that allows parents to designate their children as authorized users: Have your parents check with their card companies for options. As an authorized user, you will benefit from the primary cardholder's payment history, get your own credit card and be allowed to make purchases on the card (as long as the primary cardholder agrees).\n*   **Open your own credit card.** A few **student credit cards**, including the Journey Student Rewards from Capital One, allow you to open an account with no security deposit. Alternatively, **secured cards** are common for those with little or no credit history. With a secured card, you provide a deposit upfront that is typically equal to your credit line: A $200 deposit typically secures a $200 credit limit, for example. If you were to default on your credit card balance, the card issuer would use this deposit to pay off your debt. After a period of successful card management, your card issuer may refund your deposit or raise your credit limit.\nCredit cards are a great way to build credit—but they can also start you off on the wrong foot if you're not careful. That brings us to the next credit mistake you'll wait to avoid. END
 TITLE: Credit Mistakes to Avoid When You Are Young CONTENT: 2\\. Using Credit Cards Irresponsibly\n------------------------------------\nYou can build a positive credit history and grow your credit score with a secured card or student card, but only if you maintain good credit habits. Before you open credit card accounts and begin using your cards, learn about the factors that go into building a good credit score: payment history, credit utilization, credit mix, length of credit history and new credit. Each of these has an upside and an equally consequential downside.\nIf you don't feel prepared to manage credit responsibly, you may want to wait. After a year or two, when you have some experience managing money on your own, you may feel better equipped to handle regular bills and a credit line. Here are a few things it takes to manage credit responsibly:\n*   **Pay on time, every time.** Payment history accounts for 35% of your credit score, and every payment counts. A single 30-day late payment stays on your credit report for seven years.\n*   **Spend conservatively.** Just because you have $1,000 in available credit doesn't mean you should use it. To start, use your card to make a small purchase every month or so and pay it off right away; you don't have to carry a balance to build credit. Always try to keep your balances to 30% or less of your credit limit to maintain good credit.\n*   **Learn your card's terms.** Not only do your purchases add to your revolving balance, but if you don't pay your balance in full every month, you'll incur interest charges. How much interest? Read your card's terms carefully. They spell out how much time you have to pay off a purchase before interest kicks in, as well as what your interest rate is and what you'll pay in late fees. END
 TITLE: Credit Mistakes to Avoid When You Are Young CONTENT: 3\\. Losing Track of and Not Paying Bills\n----------------------------------------\nLate payments can be costly to your credit and otherwise. One payment made over 30 days late will ding your credit score, and accounts that end up in collections for nonpayment will damage your credit further. Even if you make a credit card payment before it's 30 days late (when it's reported to the credit bureaus), your card issuer may charge you a late fee and increase your interest rate as a penalty.\nBest strategy: Don't forget. Put a recurring reminder on your calendar or set up alerts on your credit card account and in your bank's mobile bill pay system. If you're confident you'll have enough money in your checking account at all times to cover a payment, consider setting up automatic minimum payments to remove the risk of missing a due date.\nIf your mailing address, email or phone number changes, remember to alert your card issuer or loan provider if you have student loans or a car loan. You want to be sure they can contact you with bills and any other notices. Also update any accounts that use your card for payment, especially automatic payments. If your contact or card information has changed, or your card has expired, your payments may not go through—and unpaid bills can result in credit-damaging collections. END
 TITLE: Credit Mistakes to Avoid When You Are Young CONTENT: 4\\. Not Checking Your Credit Regularly\n--------------------------------------\nChecking your credit report and score regularly can do a few important things for you. If you're doing a good job of managing your credit, you'll see your progress on your credit report, and tracking your rising credit score can be motivating. Monitor your report regularly, and you'll also get an intuitive sense of how your actions affect your credit. Make a few large purchases on your credit card and your credit score may dip due to increased credit utilization. Pay off your balance, and your score may rise. A certain amount of fluctuation is common with credit scores, so the point isn't to prevent or stress out over these minor changes, but rather to develop an understanding of how they play out.\nFinally, when you receive your credit score and report from Experian, you can see which factors are impacting your credit score along with suggestions on how to improve. You can receive a free copy of your credit report from all three credit reporting agencies at AnnualCreditReport.com or access your Experian FICO® Score☉ and credit report for free at any time. You can also use Experian's free credit monitoring to get alerts whenever there are changes to your credit report and score. END
 TITLE: How to Prevent Debit Card Fraud CONTENT: Pros and Cons of Using a Debit Card\n-----------------------------------\nDebit cards are tied to your bank account and let you make easy cashless and contactless transactions. Besides the convenience factor, there are other advantages of using debit cards—and a few disadvantages as well. END
 TITLE: How to Prevent Debit Card Fraud CONTENT: What Is Debit Card Fraud?\n-------------------------\nDebit card fraud is when someone gets access to your debit card number or PIN and makes unauthorized purchases or withdrawals from your account. Here are some ways that debit card fraud might occur:\n*   A fraudster installs a card skimming device to a gas station fuel pump, skims your debit card information and uses it to drain your bank account.\n*   A service or repair person finds old statements in your home, steals your account number and racks up thousands of dollars in fraudulent charges.\n*   A thief distracts you while walking down a busy street, takes your bookbag and uses the debit card in the bag to go on an online shopping spree.\n*   You get an email that links to a fraudulent retail store where your debit card number is collected and used to commit fraud.\n*   A data breach happens at your bank and hackers run off with your personal data. END
 TITLE: How to Prevent Debit Card Fraud CONTENT: The financial ramifications of debit card fraud can be harsher than credit card fraud. That's why credit cards are often considered a safer option when making purchases online or while abroad.\nTwo federal laws—the Fair Credit Billing Act (FCBA) and Electronic Fund Transfer Act (EFTA)—set rules for what consumer liability is in the event of credit card or debit card fraud.\nUnder the FCBA, credit card users are only responsible for up to $50 in unauthorized credit card transactions. Meanwhile, liability for debit card fraud depends on how soon you report it.\nUnder the EFTA, if you report a debit card lost or stolen _before_ someone uses the card, you're not responsible for any unauthorized transactions.\nIf you have not reported your debit card lost or stolen and you find unauthorized activity, here's what your maximum loss will be depending on when you report it:\n*   **Report loss within two days**: Up to $50\n*   **Report loss from two to 60 days**: Up to $500\n*   **Report loss after 60 days**: You could be responsible for all money taken\nAs you can see, it's crucial to keep tabs on your bank account so you can report fraudulent activity right away. If you're a victim of fraud, the FTC recommends calling your bank and also following up with a letter or email that details each fraudulent transaction. END
 TITLE: How to Prevent Debit Card Fraud CONTENT: How to Prevent Debit Card Fraud\n-------------------------------\nWhen it comes to protecting yourself from debit card fraud, the best offense is defense. Staying on top of your accounts can help you quickly catch transactions that look out of place so you can minimize your financial loss.\nHere are steps you can take to protect yourself:\n*   **Review your statement each month.** Online bank accounts typically offer a transaction log where you can regularly review your purchases, but it's also worthwhile to run through your statements each month to see if you missed any unusual activity. If you find a questionable charge, be sure to contact your debit card issuer immediately.\n*   **Keep statements in a safe place.** Physical statements you decide to keep should be put somewhere safe. Shred statements that you don't need.\n*   **Keep tabs on your debit cards.** Since so many transactions today happen virtually without an actual card swipe, you might not use your physical card on a daily basis. Keep track of which wallet your cards are in so they don't fall into the wrong hands. If you lose a card or think it may be stolen, report it right away.\n*   **Be careful about where you store your data.** Avoid storing your debit card number or PIN on your device or sending it through email. If someone gets access to your phone, computer or email, they could have all the information they need to take money from your account.\n*   **Protect your debit card when shopping online.** Scrutinize online stores before shopping because scammers can set up shops with bad intent. There are several precautions to take when making online transactions:\n*   Before entering debit card information, make sure there's an \"https\" (the \"s\" means secure) before the website name in the address bar and that there's a padlock icon next to it.\n*   Watch out for phishing scams, which often come in the form of fraudulent emails pretending to be from banks or retailers.\n*   Only give a business your debit card number if there's a valid reason and after you've determined that the company is reputable.\n*   Consider paying with a third-party payment service like PayPal when paying online since the recipient never sees your account information and you may be covered by purchase protection.\n*   Avoid making purchases on unsecured networks. END
 TITLE: How to Prevent Debit Card Fraud CONTENT: Stay Vigilant to Prevent Debit Card Fraud\n-----------------------------------------\nWhile you may not have the power to prevent big data breaches or theft fully, early detection of fraud can help minimize loss. Being hypervigilant could pay off if you catch fraud before someone is able to take off with a large sum. Review your bank accounts regularly and call the number on the back of the card if you identify unauthorized transactions. END
 TITLE: Four Ways to Reduce the Risk of Identity Theft CONTENT: 1\\. Monitor Your Credit\n-----------------------\nWhile it's possible for someone to steal your information by taking your purse or wallet or burglarizing your home, many incursions that lead to identity theft occur without the victim knowing.\nTo make sure nobody has opened up new accounts under your name, make sure to check each of your credit reports at least yearly. You can get your Experian, Transunion and Equifax credit reports for free at AnnualCreditReport.com.\nIf possible, pull one report every four months so that you're looking at your reports throughout the year. Through Experian, you can get a free copy of your Experian credit report every 30 days as well as free credit monitoring, which provides alerts about new inquiries, accounts and suspicious activity.\nIf you notice fraudulent activity, dispute it with the lender and the bureau. Also, consider freezing your credit reports and request a fraud alert be added to them if you've been victimized.\nWith a credit freeze, no one can view your credit reports, including lenders. So if a thief steals your Social Security number and plans to open credit accounts in your name, they'll be denied. Keep in mind, though, you'll also be denied for legitimate applications unless you lift the freeze. If you place a fraud alert, creditors are encouraged to contact you and verify your information (and that you applied for the loan or credit card in question) before approving the application. END
 TITLE: Four Ways to Reduce the Risk of Identity Theft CONTENT: 2\\. Keep Your Personal Documents Safe\n-------------------------------------\nOnline identity theft is more common than it used to be, but it's still possible for criminals to gain access to your credit card numbers, bank account information and other sensitive information on paper. Here are ways to safeguard your documents:\n*   **Request electronic statements**: Doing this eliminates the paper trail financial account statements create. Mail fraud is considered old school, but it's still alive and well. It's best to have financial statements delivered to your secure email inbox rather than your mailbox.\n*   **Keep your mail safe**: If you do receive paper documents with personal information, see if you can add a lock to your mailbox or use a P.O. box as your mailing address. You may also want to consider having smaller packages delivered to your work address so you receive them during the day versus having them left unattended on your porch. If you are going to be gone for a while, ask someone to pick up and hold your mail for you, or request a hold with the U.S. Postal Service until you return.\n*   **Buy a shredder**: If you plan to throw out financial and other sensitive documents, shred them first. This can take a little extra time but adds a layer of protection against dumpster-divers.\n*   **Lock it up**: There are some documents—your Social Security number, recent tax returns, birth certificate and more—you can't get rid of. Consider getting a safe deposit box at a local bank branch or purchasing a lockbox you can store them in at your house. END
 TITLE: Four Ways to Reduce the Risk of Identity Theft CONTENT: 3\\. Secure Your Online Data\n---------------------------\nStopping mail fraud is pretty straightforward, but protecting yourself online can be a lot trickier because criminals employ many tactics to steal your identity. Here's what you need to do:\n*   **Be cautious with links**: Phishing scams involve a thief using email to trick you into giving them personal information. These messages often look like they're coming from a reputable business and can take an eagle eye to spot. If something seems off about an email that's asking you to click a link to an offer or action, don't click. Instead, hover your cursor over the link and check the destination URL. If the link would take you to a different website than you were expecting, or seems otherwise illegitimate, ignore it. Additionally, these emails can include attachments that, if opened, install information-gathering malware.\n*   **Monitor your online accounts**: Staying up to date on changes to your financial accounts can be helpful in catching fraud as soon as it happens. Set up push notifications on your smartphone or other mobile devices, and pay attention to any alert emails you may get from financial institutions.\n*   **Be careful with public Wi-Fi**: Public Wi-Fi can be a convenient way to get access to the internet. But whether you're at a coffee shop or the airport, be careful about what you do while you're online. Hackers and others can set up their own free Wi-Fi networks and use them to scrape your data. Even legitimate Wi-Fi networks can be hacked, allowing the thief to \"eavesdrop\" on your connection and steal data. Make sure the network you are connected to is legitimate and can be trusted, and also use a virtual private network, or VPN, to add an extra layer of security and prevent eavesdropping.\n*   **Watch out for unsecure websites**: Before you enter payment or other personal information into a website, check to make sure it's secure and trustworthy. If the URL starts with \"HTTP\" instead of \"HTTPS,\" it's not secure and hackers can eavesdrop and steal information you share. Even if the site does have a secure connection, it can still be a front for a scam. If you don't recognize the name of the company, be diligent to make sure it's legitimate and trustworthy. END
 TITLE: Four Ways to Reduce the Risk of Identity Theft CONTENT: 4\\. Create Strong Passwords\n---------------------------\nSociety is so integrated with technology that it's easy to have scores of online accounts. As a result, it can be tempting to create one easy-to-remember password and use it everywhere.\nUnfortunately, scammers have gotten good at guessing passwords using publicly available information and social engineering—for example, asking you about your pets, children, other family members and more. And once they have your password for one website, they'll have it for all the other sites you use it on.\nTo help minimize the damage, create a unique, strong password for every online account. The strongest passwords are long, random strings of letters, numbers and symbols, and it would be impossible to memorize each one. For that reason, you could use a password manager such as LastPass or 1Password to securely store all of them in a place that's easily accessible when you need them.\nIf a website or app offers it, set up two-factor authentication. This will require you to provide a second piece of information to verify your identity. It may require you to use an authenticator app with a unique number that changes every 30 seconds or have a code sent to your email or phone.\nUsing this process takes a little more time every time you log in or change account details, but it provides valuable protection against people who want to do you harm. END
 TITLE: Four Ways to Reduce the Risk of Identity Theft CONTENT: Enlist Help to Protect Your Information\n---------------------------------------\nWith these tips, you can limit your exposure to identity theft significantly. But monitoring your information can be time-consuming, especially if you have a lot of other things to worry about. To stay up to date on how your credit and other information is being used, consider signing up for an identity theft monitoring service like Experian IdentityWorksSM Plus or Experian IdentityWorksSM Premium.\nThese services provide identity theft and credit monitoring, alerts, dark web surveillance and more to help you stay aware. They also connect you with fraud resolution services and identity theft insurance, which can come in handy if you do become a victim.\nBetween your efforts and a good identity theft monitoring service, you can not only reduce the risk of identity theft but also get back on your feet quickly if someone does manage to steal your information. END
 TITLE: The Unexpected Costs of Identity Theft CONTENT: How Can Identity Theft Impact Your Life?\n----------------------------------------\nThe impact of identity theft generally depends on the type of fraud and how long it takes to be detected. If caught immediately, an unauthorized charge to your credit card can usually be resolved quickly, with the charges reversed—or sometimes even declined before they're approved—and a new card and account number issued on the spot. But if just a little bit of time passes before the account holder, the creditor or a merchant catches on, the same fraudsters could quickly rack up charges and cause other harm that would take more time and effort to reverse.\nIn more complex cases, identity thieves may open loans and credit cards in your name, file taxes and receive refunds, or use your identity to obtain medical services. In these cases, it can take years to stop the fraud, undo the damages, and restore your identity and credit.\nHow can identity theft take a toll on you and your finances? Here are four key ways:\n*   **Time and money**: Although debit and credit card issuers limit your liability for fraudulent charges, you could still be on the hook for the loss if you don't report phony charges in time. And since time is money, the hours you spend tracking, reporting and resolving the effects of identity theft are also a significant loss. According to a report from the SANS Institute, it takes an average of six months and roughly 200 hours of work to recover your identity after it's been compromised. It may even cause you to have to take time off from your job.\n*   **Criminal record**: If someone is using your identity to commit crimes, you could be at risk for legal consequences, including arrest or a criminal record. Proving that your identity has been stolen is one hurdle; getting an arrest record cleared up—even if it's proven to be unjustified—is also a time-consuming challenge.\n*   **Credit damage**: Fraudulent charges on your accounts must be reported and resolved. In the meantime, work closely with your creditor to make sure you're meeting your financial obligations. If you fail to make a payment on an outstanding balance, you run the risk of having your payment reported as late or missed. If a fraudster has used your identity to open new accounts, their failure to pay can show up on your credit report and damage your credit score. The loans or credit they've opened also increase your debt amounts and credit utilization, which can affect your credit scores and inhibit your ability to get credit yourself. For the most part, these issues are resolvable, but the process will take some time and effort.\n*   **Emotional distress**: Having your identity stolen can be traumatic. In a survey of consumers who experienced identity crime, the Identity Theft Resource Center found that 77% reported increased stress levels and 55% experienced fatigue or decreased energy. Additionally, respondents said they had trust issues with friends and family, and problems with their employers or schools. END
 TITLE: The Unexpected Costs of Identity Theft CONTENT: How to Prevent Identity Theft\n-----------------------------\nPreventing identity theft is certainly better than having to deal with its effects. No matter how careful you are, it's not possible to avoid all risk. You can, however, improve your chances of avoiding identity theft and fraud by following some simple guidelines:\n*   Shred all documents that have personal identifying information or use a permanent marker to block it out.\n*   Stay skeptical when giving out personal information over the phone, especially if the caller is contacting you. If in doubt, hang up and directly call your financial institution or the company the caller said they represented.\n*   Don't open suspicious-looking email and never click on links in an unsolicited email. You can always log in to an account directly to see if there are outstanding issues.\n*   Use strong online passwords, stay away from public Wi-Fi, use an anti-malware program and consider using a virtual private network (VPN) to increase your online security.\nDetect fraudulent transactions quickly by monitoring your bank and credit card accounts frequently. If your card company offers transaction alerts and\/or the ability to turn your cards on and off, you can have even more immediate control over your account activity.\nMonitoring your credit can be helpful too. Check your credit report and score regularly for any unexpected changes, including new accounts or activity you don't recognize as yours. If you'd like to consolidate your efforts, credit monitoring from Experian lets you track your credit score, credit report and spending continuously, and you can set up alerts to let you know when changes and transactions occur.\nWhat if you've already been hacked? If you believe you are a victim of identity theft, consider taking these three steps:\n*   **File a report** with the authorities. Documenting your experience with the FTC and filing a police report could be necessary to dispute unauthorized charges or accounts. They can also help you clear your record if criminal activity has taken place in your name.\n*   **Freeze your credit.** A credit freeze limits the access that others, including lenders, have to your credit file. Experian, TransUnion and Equifax maintain dedicated webpages where you can set up credit freezes and find instructions for requesting freezes by mail. Since credit freezes stop legitimate applications for credit as well, and must be put in place and removed by contacting each bureau individually, they may be a hassle.\n*   **Add a fraud alert to your credit reports.** A more convenient alternative to freezing your credit is to add a fraud alert if you are, or suspect you may be, a victim of fraud. These alerts on your credit report ask creditors to take steps to verify your identity before issuing any credit in your name. Requesting a fraud alert with any credit reporting bureau will trigger an automatic fraud alert with all three bureaus.\nTools to Help You Manage Your Identity\n--------------------------------------\nWhether you're trying to prevent identity theft or are dealing with its aftereffects, managing your personal information and monitoring your credit consistently can feel like a full-time job. Services exist that can help you track your credit and accounts for signs of identity theft—and provide support if you experience identity fraud. Identity theft protection from Experian combines credit monitoring with dark web surveillance, fraud resolution support, ID theft insurance and an app that lets you lock and unlock your credit file any time, anywhere. END
 TITLE: The Unexpected Costs of Identity Theft CONTENT: Tools to Help You Manage Your Identity\n--------------------------------------\nWhether you're trying to prevent identity theft or are dealing with its aftereffects, managing your personal information and monitoring your credit consistently can feel like a full-time job. Services exist that can help you track your credit and accounts for signs of identity theft—and provide support if you experience identity fraud. Identity theft protection from Experian combines credit monitoring with dark web surveillance, fraud resolution support, ID theft insurance and an app that lets you lock and unlock your credit file any time, anywhere. END
 TITLE: What Is Credit Fraud? CONTENT: Types of Credit Fraud\n---------------------\nThere are at least 20 distinct types of credit fraud. All are forms of identity theft, distinguished by some combination of:\n*   **The type of personal information used to assume the victim's identity.** Stolen credit cards, account numbers, usernames and passwords, and Social Security numbers are among the many pieces of personal information that can be used to commit credit fraud.\n*   **The means by which personal information is stolen.** Criminals can gain possession of your personal information in many ways, including phishing scams conducted by phone, email or social media; skimming credit card data via bogus card readers; copying passwords, PIN codes and other information by looking over your shoulder; stealing your driver's license (which can be used to request birth certificates and other info), mail or credit cards; and purchasing lists of information leaked in data breaches.\n*   **The type of credit obtained through fraud.** Identity thieves use a variety of techniques to hijack credit, including opening new loans or credit card accounts in your name; taking control of existing credit card (or bank) accounts by changing mailing addresses and passwords; going on spending sprees with stolen credit cards or account numbers; opening one or more accounts in the names of your minor children who otherwise wouldn't have personal credit reports; and associating your name with another consumer's credit data to create a fictitious \"hybrid\" account they control. END
 TITLE: What Is Credit Fraud? CONTENT: How Does Credit Fraud Happen?\n-----------------------------\nCredit fraud occurs when thieves use personal information belonging to one or more consumers to open loans or credit card accounts, to buy goods or services, or to secure cash advances—and then disappear without ever paying a dime. It can also happen when fraudsters exploit existing accounts by gaining access to credit card information and using it to make purchases without the victim's knowledge or consent.\nAccording to the most recent available data from credit card industry publication The Nilson Report, losses from credit fraud were nearly $28 billion in 2018, with U.S. losses totaling nearly $9.5 billion.\nConsumers, businesses and credit users in general suffer as consumer information is compromised for criminal gain. Additionally, lenders may charge higher fees and interest rates to cover the costs of fraud-prevention and fraud management programs. END
 TITLE: What Is Credit Fraud? CONTENT: How to Avoid Credit Fraud\n-------------------------\nThe pervasiveness of credit fraud and the ever-evolving methods criminals use to steal personal data make it critical to safeguard your credit information, including credit card numbers, account usernames and passwords, and personal credentials such as your Social Security number.\nMeasures you can take to safeguard your info include:\n*   **Staying skeptical**: Be wary anytime you're asked to supply any sensitive information via email, phone call, text or instant message. The communication may appear to come from a trusted source, but the institutions you deal with regularly—including banks and credit unions, credit card issuers, the IRS and the Social Security Administration—already know your account numbers; they wouldn't be asking you for them, even if they were trying to verify your identity. If in doubt, contact the organization in question yourself by phone or their online accounts to verify the communication is legitimate.\n*   **Browsing securely**: When shopping online, make sure your browser connection to the merchant is secure and encrypted (look for an \"https\" at the beginning of the web address), and avoid using open public Wi-Fi networks (those without passwords), which thieves can easily monitor and troll for important data.\n*   **Protecting yourself from prying eyes**: Take care to shield the keypad when you enter your account PIN, and when possible, use credit cards with data chips, which are more difficult to skim than swipe-only cards.\n*   **Keeping your voice down**: When in public, avoid speaking account numbers and your Social Security number out loud. For instance, if you decide to pay your bills by phone while hanging out in public, use your phone's keypad, rather than voice prompts, to enter account numbers, PINs and other information. If you're dealing with someone in person, consider asking if there's a way you could enter the information into their system yourself, without speaking it aloud.\nGuarding your data is crucial, but because criminals can sometimes get personal data via large-scale data breaches that affect thousands of consumers at once, it's also important to continually watch for signs of unauthorized activity on your credit and other financial accounts:\n*   **Check your credit card statements carefully each month.** Keep tabs on all your accounts, even the ones you don't use regularly. Make sure you recognize all transactions, and if you're uncertain about any, call the card issuer to learn more. Lenders also have a stake in avoiding credit fraud, and can assist in checking out any suspicious activity on your accounts.\n*   **Review your credit reports for unfamiliar credit checks and new accounts.** If you see any entries that you don't understand, use the contact information included for each creditor to inquire about what's going on. If accounts you didn't authorize have been set up in your name, the creditors will begin investigating. You should also file a report with appropriate law enforcement organizations and take steps to secure your credit files (see below).\n*   **Consider using a credit monitoring service.** Monitoring services can notify you when a lender requests a copy of your credit report or credit score, or when new loan or credit card accounts are added to your credit file. Experian offers a free service that monitors your Experian credit file, and subscription identity protection services that monitor your credit files at all three national credit bureaus and add a variety of other fraud-detection benefits. END
 TITLE: What Is Credit Fraud? CONTENT: What to Do if You Believe You're a Credit Fraud Victim\n------------------------------------------------------\nIf you believe unauthorized credit activity has been committed in your name (or in the names of your minor children), it's important to report the crime to appropriate authorities as quickly as you can. Do the following as soon as possible:\n*   Contact the lender in question immediately to get a better handle on the situation. If fraudulent activity does appear to have occurred, advise the lender to begin an investigation, and cooperate with them as needed.\n*   Report the suspected crime to law enforcement immediately so they can begin investigating. The U.S. Federal Trade Commission's IdentityTheft.gov website is a great place to start; it can help you find the law enforcement organizations with jurisdiction over different types of credit fraud and other related financial crimes.\n*   Consider taking action to secure your credit reports at the three national credit bureaus (Experian, TransUnion and Equifax), to make it more difficult for fraudsters to apply for and secure credit in your name:\n    *   Adding a fraud alert to your credit reports instructs creditors to confirm your identity before processing credit applications received in your name.\n    *   Applying a security freeze to your credit file limits access to your credit information.\nCredit alerts and security freezes have different advantages and drawbacks, so compare them before deciding which is better for you.\nCredit fraud is an unfortunate occurrence that affects hundreds of thousands of people every year and causes consumers and businesses alike to lose money. Credit fraud is a persistent nuisance that's unlikely to disappear anytime soon, but safeguarding personal data, staying alert to the possibility of unauthorized credit activity, and reporting suspicious activity as soon as you notice it can help you avoid major grief at the hands of credit fraudsters. END
 TITLE: What Is the Dark Web? CONTENT: How Does the Dark Web Work?\n---------------------------\nThe Tor network is one of the largest and most well-known darknets, and it's what most people are referring to when they discuss the dark web.\nTor—short for \"The Onion Router\"—bounces information through a series of encrypted layers (like an onion) that offers users more anonymity. There are onion sites and services on the Tor network, and page addresses end in .onion.\nTo access the dark web, you can download and install the free Tor browser. (You can also use it to browse the surface and deep web.) It's perfectly legal, and the U.S. government is a major funder for the Tor Project, which creates the browser.\nBut having access to the browser is only the first step. Unlike the surface web, there aren't great search engines for the dark web. You may need to find an onion site's address on your own, and the names aren't easy to remember. For example, the CIA's onion address is ciadotgov4sjwlzihbbgxnqg3xiyrg7so2r2o3lt5wz5ypk4sxyjstad.onion, and the nonprofit newsroom ProPublica's is propub3r6espa33w.onion.\nThese are two examples of legitimate organizations that have sites on the dark web. But the dark web is best known for the illegal activity that takes place there. END
 TITLE: What Is the Dark Web? CONTENT: Why Is the Dark Web So Popular With Criminals?\n----------------------------------------------\nThe Tor network makes it easier to hide your identity and allows people to anonymously create and host onion services. As a result, criminals often use the dark web to buy and sell illicit goods and services.\nDarknet marketplaces can be surprisingly similar to sites you find on the surface web—complete with limited-time sales, customer reviews and advertisements for organic products. However, criminals use these marketplaces to sell illegal products and services, including drugs, weapons and hacking software. Many identity thieves and hacking groups make money selling the information they steal on the dark web.\nThe value of the information can vary greatly depending on what's being sold. Full profiles, or fullz, may come with a name, Social Security number, date of birth and account numbers and could cost around $8 to $30 each. Complete medical records can be particularly valuable to identity thieves, and may go for up to $1,000. Cryptocurrencies, such as Bitcoin, are the preferred means of payments as these also help keep buyers and sellers anonymous. END
 TITLE: What Is the Dark Web? CONTENT: How to Protect Yourself From the Dark Web\n-----------------------------------------\nThe dark web isn't intrinsically bad, illegal or dangerous. Whistleblowers, journalists, activists and law enforcement officers use the dark web to gather and share information without revealing their identity. And around the world, users may want to use Tor or the dark web to evade government censorship and surveillance.\nHowever, if you're the victim of identity theft or affected by a data breach, your information could be sold on the dark web. There are some steps you can take to help protect yourself and stay ahead of identity thieves.\n*   **Be cautious when browsing the dark web.** If you choose to browse the dark web, be mindful that you don't know where a .onion address will take you. You could unwittingly wind up on a site that tries to install malware on your device.\n*   **Use unique passwords for your accounts.** If your account information is stolen, it's only dangerous if an identity thief can actually use it. Creating unique passwords for all your online accounts can help limit the impact of a single data breach. If you suspect your account information may have been compromised, change your password immediately.\n*   **Update your passwords.** Regularly changing your passwords even in the absence of a threat can also make your account information less useful. A password manager can help you create and store strong passwords, and may even perform regular security checkups for you.\n*   **Sign up for dark web monitoring.** A dark web monitoring service will look for your information on the dark web and inform you if it finds anything. The forewarning will let you know which information is compromised, and gives you a chance to take steps to secure your identity and accounts.\n*   **Lock or freeze your credit reports.** Locking or freezing your credit reports can keep someone from opening an account in your name, even if they have your personal information.\nThere are other ways to protect your information online as well, such as being mindful of what you share on social media, closing unused accounts and avoiding phishing attacks. END
 TITLE: What Is the Dark Web? CONTENT: Get a Free Dark Web Scan\n------------------------\nWhile there's no way to ensure all your information stays private, putting protective measures in place can help. Knowing if and when your information is compromised can also help you respond quickly—before too much damage is done. Experian offers a free, one-time dark web scan for your Social Security number, email and phone number. If you want ongoing dark web surveillance, it's one of the many benefits included with an Experian IdentityWorksSM subscription. END
 TITLE: How to Protect Yourself From Identity Theft CONTENT: How to Recognize Signs of Identity Theft\n----------------------------------------\nIdentity theft can affect you in many ways, and there are various ways to identify it. Knowing the warning signs that signal fraud is developing—or is happening already—can help you more quickly take action to stop it. Here's what to look out for:\n*   **You no longer get your household bills in the mail.** An absence of bills in the mail could mean your personal data has been compromised, and the identity thief has changed your billing address to try to keep you from seeing your statements.\n*   **You've been turned down for a loan or credit card.** If you're rejected for credit but have a solid credit history, you might have been targeted by an identity thief. If you're approved for a loan or credit but at higher interest rates than you expect, that's also a sign you may have been victimized by identity theft. Monitoring your credit can help prevent this.\n*   **You're being billed for items you didn't purchase.** If you receive an invoice for a purchase you don't recognize, or you're being billed for overdue payments for credit accounts you don't own, that's a sign your identity's been compromised.\n*   **Your financial accounts show charges you don't recognize.** If your bank, credit card or other financial account show unauthorized transactions, those accounts may have been breached.\n*   **Your tax return was rejected.** If you filed your tax returns and received a rejection notice from the IRS due to a duplicate return, that could indicate a return has already been fraudulently filed in your name.\n*   **Small test charges appear on your credit card statement.** It's common practice for identity thieves to \"test\" that a stolen card is still active by making low-cost purchases of under $5. If the credit card is approved, the fraudster knows that the path is clear for larger transactions.\n*   **Your creditors alert you to suspicious activity.** You may get a call or text from a company you do business with that tells you fraudulent activity has been detected. For instance, the company that issued one of your credit cards might tell you a suspicious transaction has been attempted with your card. Take care of the immediate issue, and take steps to prevent it from happening again. END
 TITLE: How to Protect Yourself From Identity Theft CONTENT: To better protect your personal data against identity thieves, it's important to be proactive about your approach. Ultimately, the goal is to build as many effective barriers as you can, which can discourage identity thieves from trying to victimize you.\nStart that process with these eight steps: END
 TITLE: How to Protect Yourself From Identity Theft CONTENT: What to Do if You Believe You Are a Victim of Identity Theft\n------------------------------------------------------------\nIf you notice something suspicious, the sooner you take action to address it, the better. Once identity thieves know they can get away with their crimes, they can increase their activity and make it even more difficult to recover.\nHere are some steps you can take if you believe you've been victimized by an identity thief:\n*   **Review your credit report.** Regardless of the type of fraud that has occurred, take some time to review your credit report to make sure everything is accurate. If you find an account you don't recognize, address it immediately.\n*   **File an identity report if needed.** If you're able to confirm that your identity has been stolen, take steps to report it. That includes reporting to the Federal Trade Commission and possibly even filing a police report. You may also want to reach out to your creditors to explain the situation.\n*   **Place a fraud alert or security freeze.** Fraud alerts and security freezes can help prevent future fraud from happening. A fraud alert will notify prospective creditors that you may be a victim of fraud and encourages them to contact you at a number you provide to verify your identity. A security freeze, on the other hand, stops anyone from viewing your credit report to begin with, which prevents someone from opening a credit account in your name. Another option is to lock your Experian credit file with Experian CreditLock.\n*   **Dispute any inaccurate information you find in your report.** If you believe you have fraudulent information on one or more of your credit reports, make sure you dispute it with the appropriate credit bureau. Disputes are generally resolved within 30 days, and the fraudulent information will be removed if the credit bureau confirms your claim.\nBe Vigilant With Identity Theft Fraud Protection\n------------------------------------------------\nIdentity thieves often strike when you least expect it, so it's crucial to avoid taking the security of your personal data for granted. As you take steps to protect your information and identity, you'll make yourself a more difficult target for thieves and may even stop them in their tracks.\nAs you monitor your credit, protect your devices and accounts, avoid phishing and other scams and keep your documents out of the wrong hands, you'll be able to sleep better knowing that your information is safe. END
 TITLE: How to Protect Yourself From Identity Theft CONTENT: Be Vigilant With Identity Theft Fraud Protection\n------------------------------------------------\nIdentity thieves often strike when you least expect it, so it's crucial to avoid taking the security of your personal data for granted. As you take steps to protect your information and identity, you'll make yourself a more difficult target for thieves and may even stop them in their tracks.\nAs you monitor your credit, protect your devices and accounts, avoid phishing and other scams and keep your documents out of the wrong hands, you'll be able to sleep better knowing that your information is safe. END
 TITLE: What Is Dark Web Monitoring? CONTENT: How Does Dark Web Monitoring Work?\n----------------------------------\nDark web monitoring services scan hundreds of thousands of websites each day to look for personal information that criminals can use to steal your identity. That can include the following:\n*   Social Security number\n*   Email address\n*   Passport number\n*   Medical identification numbers\n*   Bank account numbers\n*   Phone numbers\n*   Driver's license\n*   Credit\/debit cards\n*   Retail\/membership cards\nExperian offers Dark Web Surveillance through its IdentityWorks℠ Plus and IdentityWorks Premium products. These paid services also provide several other credit monitoring and identity theft features and protections. With IdentityWorks, Experian will scan 600,000 dark web pages every day and send you a notification if it finds potentially compromising information.\nYou can get this product for yourself and your family, which means you can also check to see if your child's personal information is on the dark web. You are in control of what information you want to be monitored on the dark web. For the information you choose to monitor, just enter the relevant details directly in your Experian account.\nNot sure if you're ready to sign up? You can run a free dark web scan with Experian to see if your Social Security number, phone number or email is on the dark web. END
 TITLE: What Is Dark Web Monitoring? CONTENT: Types of ID Theft That Can Happen on the Dark Web\n-------------------------------------------------\nThe dark web gives criminals the gift of anonymity, so it can be difficult to track down who has sold and purchased your information. Depending on the type of information that's listed, thieves can commit all sorts of identity theft and fraud.\nFor example, if it's your Social Security number, whoever is in possession of it can open fraudulent accounts in your name, file fraudulent tax returns and health insurance claims, and more. If they manage to get a password that was leaked in a data breach, they can use that password to log in to any of the online accounts where you use it.\nFinally, if it's your bank account or credit card number that gets leaked and sold, criminals can use that information to drain your checking and savings accounts and make fraudulent purchases.\nWhile it's possible to recover from identity theft, the process can take anywhere between a few days and several years in some cases. It can also be an expensive endeavor, requiring a lot of your time to track down, report and resolve the issues that arise—in some cases, you may need to miss work to stay on top of things.\nIdentity theft left unaddressed can also have a big impact on your credit score, which will make getting financing expensive or even impossible. If identity theft has affected your credit reports, you might explore filing a dispute with the credit bureaus that maintain them.\nOne of the best ways to reduce the amount of time and money it requires to rebound from identity theft is to spot it before it happens (or early on in the process) and take steps to stop the thief in their tracks. END
 TITLE: What Is Dark Web Monitoring? CONTENT: How You Can Protect Your Information From the Dark Web\n------------------------------------------------------\nIn addition to monitoring that will alert you if your information shows up on the dark web, it's important to take a few extra steps to stay safe. There are some things you can do to reduce the odds that your personal information will land in the wrong hands in the first place and also spot the signs of identity theft early:\n*   **Use strong passwords and change them regularly.** With so many aspects of our life online, it's virtually impossible to remember a unique password for each online account. Consider using a password manager like LastPass or 1Password to help you set and keep track of strong passwords for each website you use. Also, consider changing your passwords regularly in case the information does get leaked.\n*   **Browse securely.** If you're on a public network like the one coffee shops, shopping malls and airports provide, use a virtual private network to protect others from eavesdropping on your connection. The same goes for using secure websites—before you provide any type of personal information, make sure the website you're using is secure. You can do this by checking to make sure the URL begins with HTTPS, or your browser might show a padlock icon or the word \"secure.\"\n*   **Safeguard your information.** There are several different ways criminals can access your personal information. Prevention tactics include signing up for e-statements so they can't get it from your mailbox, password-protecting your mobile devices, keeping your Social Security number and passport in a safe or lockbox, and avoiding leaving your wallet or purse in your vehicle.\nIf you've already fallen victim to identity theft, you may be able to spot the signs by checking your bank and credit card statements and online accounts regularly for transactions you don't recognize, checking your score and credit report frequently, and looking out for suspicious communications.\nOnce you spot identity theft, be sure to file an identity theft report with the Federal Trade Commission. Depending on the situation, you may also need to file a police report with local law enforcement and also contact your state's motor vehicle department, the U.S. postal service, the Federal Bureau of Investigation or the U.S. State Department passport agency.\nYou may also want to request a fraud alert or security freeze on your credit reports. These can help prevent fraudsters from opening new credit accounts in your name.  \nProactive Monitoring Can Help Reduce Your Risk\n----------------------------------------------\nCybercriminals aren't likely to let up anytime soon, so it's extremely important to do everything you can to safeguard your information. Monitoring your online information via dark web monitoring and credit monitoring—especially through services that do all the legwork and notify you of potential issues—can let you sleep a little better, knowing you will be notified if you need to take action to prevent financial or reputational harm. END
 TITLE: What Is Dark Web Monitoring? CONTENT: Proactive Monitoring Can Help Reduce Your Risk\n----------------------------------------------\nCybercriminals aren't likely to let up anytime soon, so it's extremely important to do everything you can to safeguard your information. Monitoring your online information via dark web monitoring and credit monitoring—especially through services that do all the legwork and notify you of potential issues—can let you sleep a little better, knowing you will be notified if you need to take action to prevent financial or reputational harm. END
 TITLE: What’s the Difference Between a Credit Freeze and a Credit Lock? CONTENT: Federal law allows you to activate and remove a credit freeze on your credit report from each credit bureau at no cost.\nTo block all access to your credit history using credit freezes, you must request a separate freeze from each of the three national credit reporting agencies. To request a free Experian security freeze, visit Experian's Security Freeze Center or call 888-EXPERIAN (888-397-3742) and provide the required information.\nWhen you place a security freeze on your credit report, the relevant credit bureau provides you with or lets you set up a PIN or password to use when lifting the freeze.\nBy law, credit bureaus must activate a credit freeze within 24 hours of receiving a request by phone or online, and they must lift a freeze within one hour of receiving a request to do so accompanied by your PIN or password. If you lose your PIN or password, you can request a reset from the respective credit bureau, but the one-hour time requirement will no longer apply.\nCredit freezes are effective at thwarting unauthorized access to your credit file, but they also block authorized access to credit information. Because they prevent lenders from checking your credit, you'll need to \"thaw\" your credit freezes before applying for a loan or credit account.\nBecause they prevent credit checks, credit freezes may interfere with your ability to get instant credit authorizations at online or at retail checkouts, but they do not harm your credit or have any impact on your credit scores. END
 TITLE: What’s the Difference Between a Credit Freeze and a Credit Lock? CONTENT: What Is a Credit Lock?\n----------------------\nLike a credit freeze, a credit lock blocks all access to your credit report, but you can activate it and disable it instantly via a dedicated smartphone app or secure website. There's no delay of up to 24 hours when locking your credit file, and no delay of up to one hour when unlocking it, as with a credit freeze.\nService offerings that include credit-locking differ among the national credit bureaus. Experian offers CreditLock as part of its CreditWorksSM Premium subscription service, which also includes:\n*   Monthly access to credit reports from all three bureaus\n*   Alerts when there's new credit activity on your accounts at any of the three bureaus, to help you detect unauthorized action\n*   Up to $1 million in identity theft insurance\n*   Phone assistance from Experian experts in credit and fraud resolution\nEach credit bureau requires you to provide proof of identity when you set up a credit lock. You can submit the necessary documents electronically or mail in hard copies.\nThe security benefits of a credit lock are the same as those for a credit freeze, and the limitations on access to your credit are the same as well: No criminal access to your credit file is possible, but neither is any legitimate access by new lenders to whom you are applying for loans or credit.\nThe ability to activate and deactivate a credit lock instantly, without the time delays inherent in the credit freeze process, can make the application process easier. So if you're at a stage of life where you anticipate to be making frequent applications for loans and credit, you may find a credit lock considerably more convenient than a credit freeze.\nYou may also want to consider a third option: a fraud alert. END
 TITLE: What’s the Difference Between a Credit Freeze and a Credit Lock? CONTENT: When to Use a Fraud Alert\n-------------------------\nA less severe alternative to credit freezes and credit locks is another free option called a fraud alert. Fraud alerts allow lenders to see your credit file, but it requires verification of your identity before any credit application is processed or any new account is opened in your name.\nThere are three types of fraud alerts available:\n*   **Initial fraud alert**: While all fraud alerts are free, only the most basic one, known as an initial or temporary alert, can be set up by anyone, anytime and for any reason. You may want to place a temporary fraud alert if you suspect your personal information has been compromised but haven't yet confirmed it; if a credit card goes missing, for instance, or if you see unusual activity on a credit card or bank account but haven't yet determined if it's criminal. A temporary fraud alert lasts one year, but can be renewed indefinitely.\n*   **Active-duty fraud alert**: This type of fraud alert also lasts one year, and is designed for use by members of the U.S. armed forces on assignment away from home.\n*   **Extended fraud alert**: This alert lasts seven years and requires you to submit a copy of a fraud report you supplied to a law enforcement agency.\nAll three types of fraud alerts are lifted automatically upon expiration, but you can remove one anytime before that upon request, just as you can discontinue a credit freeze or credit lock. END
 TITLE: What’s the Difference Between a Credit Freeze and a Credit Lock? CONTENT: How to Remove a Credit Freeze and Credit Lock\n---------------------------------------------\nThe quickest and easiest way to remove a credit freeze is via the PIN code or password set up when you activated your credit freeze. You can call the credit bureau by phone or visit the credit freeze page on its website. If you've frozen your credit at all three national bureaus, you'll need to thaw it at each bureau separately as well. You'll have the option to thaw your credit permanently, lift the freeze temporarily, or to get a single-use PIN or password you can provide to a creditor you want to give access to your frozen credit file.\nRemoving a credit lock requires only that you flip a virtual switch online or in an app provided by one of the credit bureaus. When access to your credit file is no longer required, you can reapply the lock just as easily by turning the switch back on.\nCredit freezes and credit locks are relatively extreme measures that lock down your credit files completely, preventing access by both criminal actors and lenders from whom you may be seeking credit. They offer excellent security for your credit data, but using them when you're actively seeking new credit requires some careful planning. END
 TITLE: How to Stay Safe While Shopping on Your Cellphone CONTENT: The Risks of Shopping on Your Phone\n-----------------------------------\nShopping by phone carries many of the same risks as shopping online using your home computer. The main concern in both cases is that the payment and personally identifiable information you share could lead to identity theft and fraud. Here are just a few of the ways mobile shopping can lead to trouble:\n*   Using public Wi-Fi exposes your data to hackers.\n*   Viruses, malware and ransomware infect your phone when you click a link in an ad, email or text message, or inadvertently download a malicious app.\n*   Phishing emails or texts lure you into sharing personal identifying information with fraudsters.\n*   Your phone itself is stolen and its information accessed.\n*   A site you shopped with experiences a data breach.\nIdentity theft can lead to a variety of problems including account takeover fraud, where criminals use your login information to access your accounts. Once in, they may make changes to lock you out of your account, make unauthorized purchases or gain access to your other accounts and personal information. If your payment information is compromised, a fraudster might rack up thousands in credit card bills before you even notice. END
 TITLE: How to Stay Safe While Shopping on Your Cellphone CONTENT: How Can You Protect Yourself While Mobile Shopping?\n---------------------------------------------------\nKeeping your information and identity safe is clearly a priority. By taking these steps, you'll be better equipped to stay safe while shopping from the comfort of your phone.\n### 1\\. Protect Your Phone\n*   **Use** **biometrics** **and a strong passcode.** This helps keep intruders out of the sensitive information you have stored on your phone.\n*   **Keep your phone's software updated.** Outdated software can make you more vulnerable to hackers.\n*   **Look into antivirus software.** You may associate antivirus software with desktop computers, but it's a valuable asset to have on your smartphone as well. Anything that accesses the internet could be vulnerable to a virus.\n*   **Only download trusted apps.** Beware of fake apps in the app store or invitations to download unfamiliar apps that arrive by email or text (even if they purport to be from a trusted friend).\n*   **Consider cellphone identity protection.** Cellphone ID protection may be available through your wireless carrier, though you might also consider getting general identity theft protection for broader coverage.\n### 2\\. Connect Safely\n*   **Don't shop on a public Wi-Fi network.** If you must shop or do your banking when you're on the go, your phone's cellular data is encrypted and will do a better job of keeping your information private. As an added safeguard, keep Wi-Fi and Bluetooth on your phone turned off when not in use so you don't inadvertently connect to a strange network or device.\n*   **Consider a virtual private network (VPN).** Signing up for a private mobile VPN can be relatively inexpensive and will add an extra layer of security to your mobile shopping.\n*   **Only shop on trustworthy sites.** Shop with retailers you know and be wary of offers you see in social media ads, email or texts. Verify that the site you're using is real and secure. Using your mobile browser, look for the letters \"https:\" at the beginning of the site's URL. This tells you their site is encrypted for better security. Also look for the \"lock\" icon next to the URL when you're on the payment screen.\n*   **Use unique passwords on each site you visit.** A password manager can help you generate strong passwords and keep track of them.\n### 3\\. Keep Your Information Private\n*   **Avoid storing your information.** Use guest checkout whenever practical and don't allow retailers to save your payment information. If someone gains access to your account, they can make purchases without needing your credit card number.\n*   **Use a digital wallet like Apple Wallet or Google Wallet.** Digital wallet apps don't store your credit card number on your device and don't even share it with merchants in most cases. The number the merchant sees is only associated with the app and not your actual payment information, which makes it useless to a hacker even if it is somehow pilfered. Securing your phone with biometrics makes it even harder for a payment to be made without your permission.\n*   **Consider using a payment platform like PayPal.** Third-party payment apps put a layer of security between your card information, the retailer and any prying eyes trying to get ahold of your data.\n*   **Be selective with the apps you install.** Apps can be convenient and secure, but be cautious. It's possible that an app you install could harbor malware and act as a Trojan horse to steal your data. Even when apps are legitimate, they may be gathering and selling your information.\n*   **Set up** **two-factor authentication** **on your accounts.** This security measure requires that anybody trying to access your account (yourself included) take an extra step to verify their identity. It can be a very effective way to keep fraudsters out. END
 TITLE: How to Stay Safe While Shopping on Your Cellphone CONTENT: What to Do if You Suspect Identity Theft\n----------------------------------------\nNo matter how careful you are, it's a good practice to monitor your accounts for signs of compromise. Check your credit report regularly for any inquiries or accounts you don't recognize. You may also want to set up credit monitoring, which will alert you to new credit inquiries or when a new account is opened in your name. Take a look at your debit and credit accounts frequently for unfamiliar charges and consider setting up account alerts that text you whenever a transaction is made.\nIf you suspect identity theft, consider following these steps:\n*   Contact your card company to report the problem.\n*   Visit the Federal Trade Commission at IdentityTheft.gov. Report a theft, get a recovery plan and assess your need to report the incident to local law enforcement.\n*   File a fraud alert that will ask creditors to verify your identity before issuing credit in your name. Filing a fraud alert with any of the three credit reporting agencies (Experian, TransUnion or Equifax), will trigger an alert with the remaining two bureaus.\n*   Consider a temporary credit freeze that prevents new credit from being opened in your name while it's in place.\n*   Change your passwords on any account that's been affected—directly or indirectly—by identity theft. If any of your other accounts share a password with the account that's been compromised, be sure to change it too.\n*   Continue monitoring your accounts. END
 TITLE: How to Stay Safe While Shopping on Your Cellphone CONTENT: Proceed With Caution\n--------------------\nYour mobile shopping habit probably isn't going to go away anytime soon. Taking the time now to shore up security can help you enjoy the convenience and speed of shopping by phone well into the future. Be mindful of where and how you shop, and monitor your accounts and credit to keep your information as safe as possible. END
 TITLE: While You’re Playing Fortnite, Fraudsters Are Looking to Play You CONTENT: How Big Is Fortnite?\n--------------------\n_Fortnite: Battle Royale_ has more than 80 million players worldwide monthly and some 200 million registered players, according to Epic Games. A live-streamed game last year set a new Twitch record for individual online streams, with over 600,000 people watching. The game featured rappers Drake and Travis Scott, Pittsburgh Steelers wide receiver JuJu Smith-Schuster and one of the game's popular players, Tyler \"Ninja\" Blevins.\nProfessional athletes are using the popular Fortnite dances in their own game celebrations, and Boston Red Sox pitcher David Price missed a start because he had carpal tunnel syndrome from playing too much Fortnite.\nNielsen's SuperData Research, that specializes in video games, reported that Fortnite earned $2.4 billion in annual revenue in 2018. That is more digital revenue in 2018 than any game in history. END
 TITLE: While You’re Playing Fortnite, Fraudsters Are Looking to Play You CONTENT: A Common Fortnite Scam: YouTube Free V-Bucks\n--------------------------------------------\nThat kind of money and the addictive nature of the game has drawn criminal elements to the Fortnite universe. New players mean new opportunities for fraudsters who promise something free to help elevate your game. In Fortnite there are V-bucks, the virtual money that players can use to buy new gear.\nWhile recently playing the game with my son and wanting to help advance our \"Battle Pass\" standing, I did a search for \"free V-bucks.\" I found results promising we would win huge amounts of Fornite V-bucks. My son suggested I check out those third-party videos on YouTube, and what came back were more than 4.6 million various videos promising players to get free V-bucks by following their instructions or tips. Most send you to a website where you share an obscure code from your game account; in some cases, that allows scammers to gain access to your payment information either on your smartphone or game console. The third-party sites also have plenty of ads (which can lead you to download malware on your computer) or follow up with an email, which is really a phishing attempt or to download their app that can have spyware.\nI know because I watched plenty of the videos hoping to find one I thought was legitimate but was too nervous to click on anything. Ironically, one video demo of how to get free V-bucks has the username shown as \"VIRUSS999.\" While that username may be an easy sign of a fake, other ways to spot a scam video are to look at the number of likes and dislikes a video has received, and whether or not the poster is verified by YouTube with a check symbol next to their name. END
 TITLE: While You’re Playing Fortnite, Fraudsters Are Looking to Play You CONTENT: Android Fornite App Scam\n------------------------\nAnother scam that has been affecting Fortnite players are fake apps in the Google Play store. Before the game was available on Android devices, security researchers at Zscaler found a bunch of Android apps posing as the official Fortnite app for Android. When players download the fake version of the game on their phones they ended up downloading spyware and adware that ends up being a real-life cyberattack. Many of these fake apps ask users to rate and review it with prewritten comments that make it look like the app is legitimate. In one case, Zscaler found an app that had over 5,000 downloads with more than 4,000 five-star reviews.\nYou should make sure to check your iOS and Android privacy settings to see if you're allowing third-party app downloads from untrusted sites. If you do, you may want to change that setting or delete those apps. You should only get apps from the official Apple and Android stores. END
 TITLE: While You’re Playing Fortnite, Fraudsters Are Looking to Play You CONTENT: Don't Get Scammed or Hacked While Playing Video Games\n-----------------------------------------------------\nYou need to understand that even while playing games, sharing too much information online can allow scammers to gain access to your stored credit card number and perhaps even steal your identity. Here are some video game tips to help you avoid scams:\n### 1\\. Don't Overshare Information\nAvoid sharing details such as your real name, address or your account password as scammers will try to become friends with anyone in order to steal information. Only follow friends or people you know and don't accept the random stranger friend request.\n### 2\\. Don't Use Your Game Password on Other Sites\nUsing a different password for a game site limits the risk if the site is compromised at any time. Make sure sites asking for your game password are legitimate either through a verification check mark on YouTube or has an official affiliation with the game website and developer.\n### 3\\. Use Two-Factor Authentication\nYou're able to add this to most video games and consoles now and it gives you an added layer of security. Two-factor authentication requires you to provide a second piece of proof to verify your identity, usually, a code sent to your mobile device or email. While it takes a little extra time to set up and log in, enabling the feature in a device or on the game console is worth it.\n### 4\\. Don't Let Friends or Family Share Your Account\nPassword sharing or account sharing is a surefire way to increase the odds of having your account hacked, have your information stolen, or lose money. As tempting or peer-pressure packed as it may be, don't give in.\n### 5\\. Use a Throwaway Credit Card\nUse a virtual credit card or one that is not your everyday card tied to your bank account. This will help you minimize your risk if your credit or debit card number is part of a data breach.\n### 6\\. Don't Talk to Strangers\nAs old-school as it sounds, if some random person asks for details such as name, birthdate, Social Security number, or even about hobbies and interests through a game or text, don't respond. If they ask for money, don't give it to them no matter the reason.\nIf other players start harassing you or ask for money you should report that player to the Epic Games player support page. END
 TITLE: While You’re Playing Fortnite, Fraudsters Are Looking to Play You CONTENT: What to Do If You Think Your Identity Was Stolen\n------------------------------------------------\nIf you think you or someone in your family has become a victim of identity theft you should report it to the support page for the game and to the game system so they are aware. If any of your information is compromised, change your password immediately and consider getting a new credit or debit card. You'll want to keep an eye on accounts and even your credit report (you can check your Experian credit report for free) to make sure no fraudulent charges or new accounts show up.\nHere are more actions you can take to help protect your data:\n1.  Add a free fraud alert to your Experian credit report that warns lenders you may have been a fraud victim. This notifies any potential lender to take additional steps to verify your identity before providing any new line of credit in your name. The new nationwide law extends an initial fraud alert from 90 days to 12 months for free.\n2.  Go over your free Experian credit report to make sure that there are not any unwanted accounts opened in your name or using your personal information.\n3.  File an identity theft report with your local police department through the non-emergency number and explain you are the victim of identity theft. They can tell you what information you need to provide.\n4.  If you discover that you are indeed a victim of identity theft, notify Experian to resolve fraudulent activity by speaking with Experian consumer assistance associates.\n5.  Add a seven-year fraud victim alert to your credit report after you have confirmed you are an identity theft victim and have obtained a police report. This notifies future creditors that you have been a victim of fraud, and extra steps need to be taken to verify your identity.\nHere are additional resources to protect you and your kids from identity theft:\n*   What Is Identity Theft?\n*   How to Reduce the Risk of Identity Theft\n*   How to Protect Your Child from Identity Theft END
 TITLE: Can You Freeze a Credit Score? CONTENT: What Is a Credit Freeze?\n------------------------\nAlso known as a security freeze, a credit freeze is a tool provided by the three national credit bureaus—Experian, TransUnion and Equifax—that allows you to restrict who can view your credit reports.\nWhen you or someone else submits a credit application in your name, most lenders run a credit check to determine your eligibility for the loan or credit card. But with a credit freeze, lenders are unable to view the credit reports that you've frozen, so they are unable to complete the application.\nAs a result, a credit freeze is an excellent defense against identity thieves who have your personal information and may attempt to use it to open fraudulent credit accounts in your name without your permission. But it's also an extreme measure that could prevent authorized creditors from checking your credit and complicate the loan or credit card application process. END
 TITLE: Can You Freeze a Credit Score? CONTENT: Does a Credit Freeze Affect Your Credit Score?\n----------------------------------------------\nYour credit score and your credit report are two separate things. The credit bureaus—Experian, TransUnion and Equifax—maintain credit reports, which contain information about your credit-related activities, while credit scoring companies such as FICO® and VantageScore® use the information in your credit reports to calculate your credit scores with each bureau.\nWhen you freeze your credit report, you block lenders from being able to access your credit information as a result of an application. However, your current lenders will continue to report and update the account information in your report, so a freeze will have no impact on your credit scores. A security freeze also doesn't stop you from using the credit accounts you currently have, and you must continue to make loan and credit card payments.\nIf you want to apply for new credit, you will need to \"thaw\" your credit reports in advance so lenders can view your credit reports to make a decision. If you know you will be applying for credit, you can request to thaw your credit report temporarily. You can also request a one-time-use PIN that you can provide to a specific lender to give them one-time access to your report.\nKeep in mind that lenders are not the only ones who may access your credit report when making decisions. For example, some insurance companies, such as homeowners and auto insurance companies, may use your credit information to calculate a credit-based insurance score to determine your premiums. Companies requesting your credit report for the purpose of insurance underwriting may still be able to see your credit information even with a credit freeze in place.\nGenerally speaking, however, if you are thinking of applying for credit in the near future, it may be better to consider a fraud alert or security alert in lieu of freezing your credit. END
 TITLE: Can You Freeze a Credit Score? CONTENT: Who Can View My Credit Report When It's Frozen?\n-----------------------------------------------\nWhen you freeze your credit reports, only the following people and organizations can view the information found in them:\n*   You\n*   Existing creditors or debt collectors acting on their behalf\n*   Government agencies responding to a court order, subpoena or search warrant\n*   Insurance companies accessing your report for the purpose of insurance underwriting\n*   Anyone accessing your credit report for employment, tenant or background screening purposes\nA credit freeze also won't stop you from receiving prescreened offers. This is because when a lender sends a prescreened (or preapproval) offer, it's not based on a check of your credit reports. Instead, lenders will request a list of people from the credit bureaus based on their criteria, such as a minimum credit score.\nIf you'd like to stop these offers, you can make a request at OptOutPrescreen.com or call 888-567-8688. END
 TITLE: Can You Freeze a Credit Score? CONTENT: Credit Freeze vs. Fraud Alert\n-----------------------------\nIt's important to note that a credit freeze is different from a fraud alert. With a fraud alert, the credit reporting agencies add a note to your credit reports stating that you may be a victim of fraud and providing lenders with your contact information, so they can call and verify your identity before they proceed with a credit application.\nAn initial alert lasts one year but can be renewed once it expires. Alternatively, you can add an extended fraud alert, which lasts seven years, if you have a police report or another identity theft report that shows you've been a victim of identity theft.\nFinally, if you're an active-duty military service member on a remote-duty assignment, you can file an active-duty fraud alert, to protect your credit report while you're away. This alert lasts for 12 months but can be renewed to match your deployment.\nFraud alerts may be preferable over security freezes for a few reasons. With a credit freeze, you have to thaw your credit report before applying for loans or credit cards so creditors can check your history. A fraud alert, on the other hand, allows creditors to access your report but asks the creditor to contact you to verify your identity when you (or anyone else) applies for a loan in your name—requiring no action on your part other than confirming your identity with the lender.\nIn addition, a credit freeze prevents access to your credit file indefinitely; you must remember to remove the freeze if you want to apply for credit. Fraud alerts, as noted, are temporary, with the option to extend them if necessary.\nFinally, if you place a fraud alert on your credit report with one of the credit bureaus, it will be automatically added to all three of your credit reports. With credit freezes, however, you must contact each bureau separately to place a freeze. (When you remove a credit freeze or fraud alert, you must do so with each bureau.) END
 TITLE: Can You Freeze a Credit Score? CONTENT: How to Freeze Your Credit\n-------------------------\nYou'll need to contact each credit bureau individually to place a security freeze on your credit reports. You can submit your request with Experian online, by phone or by mail. You'll need to provide information about yourself, including your:\n*   Full name\n*   Date of birth\n*   Social Security number\n*   Current address\n*   Contact information\nYou may also be asked a handful of questions to verify your identity, such as information about current credit accounts, places you've lived and more.\nDepending on the credit bureau, you may receive a PIN or be asked to create one, which you can use to freeze and unfreeze your credit as needed. When you're ready to thaw your Experian credit report, simply visit the Experian Security Freeze Center and provide your PIN; then you can do the same thing to refreeze it. END
 TITLE: Can You Freeze a Credit Score? CONTENT: A Credit Freeze Won't Stop All Forms of Fraud\n---------------------------------------------\nA credit freeze can be a great way to help prevent new-account fraud if you've repeatedly faced identity theft, such as a criminal using your personal information to open a new credit account in your name. But it won't stop all forms of identity theft.\nFor example, thieves may still be able to access your credit card accounts and use them without your permission. And if they have your Social Security number, they may still be able to file a fraudulent tax return or file a fraudulent health insurance claim in your name.\nAs such, if you think someone has stolen your personal information, it's important to be vigilant and keep track of the different areas of your life that fraudsters can attack.\nAlso, it's important to continue monitoring your credit while your credit reports are frozen, because while cybercriminals may not be able to open new accounts in your name, a missed payment, a high credit card balance or fraudulent use of your accounts could still damage your credit score. It's important to address potential issues as they arise to maintain good credit for the long haul. END
 TITLE: 6 Things to Know Before Freezing Your Credit CONTENT: Before You Freeze Your Credit\n-----------------------------\nThe process of freezing and unfreezing your credit can be done in a few minutes with each credit reporting agency (Experian, TransUnion and Equifax), but that doesn't mean it's an action to be taken lightly. Here are six things to understand before you start the process: END
 TITLE: 6 Things to Know Before Freezing Your Credit CONTENT: How to Freeze Your Credit for Free\n----------------------------------\nYou'll want to place a free credit freeze on all three of your credit reports, including from Experian, Equifax and TransUnion. That said, the process can vary from agency to agency.\nWith Experian, you can visit the Experian Freeze Center and request it online or call 888-397-3742. Provide the requested information and verify your identity to complete the process.\nIf you need to lift your credit in the future, you can do so by visiting your online account with each credit bureau or calling. END
 TITLE: 6 Things to Know Before Freezing Your Credit CONTENT: Does a Credit Freeze Affect Your Credit Score?\n----------------------------------------------\nA credit freeze won't have any impact on your credit score, nor will it impact your current credit accounts.\nWhile a credit freeze won't affect your credit score in any way, it will impact your ability to qualify for a loan or credit card unless you thaw your credit before submitting your application. If you're lifting the freeze temporarily, make sure you have enough time to complete the loan application and underwriting process. END
 TITLE: 6 Things to Know Before Freezing Your Credit CONTENT: A Credit Freeze Is Helpful but Not a Cure-All\n---------------------------------------------\nA credit freeze can help reduce your exposure if you suspect identity theft, but it won't eliminate it entirely.\nIt's important to keep track of your credit score and check your credit reports regularly. You can get a copy of each of your credit reports every 12 months through AnnualCreditReport.com, and you can access your free Experian credit report anytime. Now through April 2021, you can receive a free credit report from each of the bureaus once a week from AnnualCreditReport.com.\nAs you stay on top of your credit scores and reports, you'll be in a good position to detect potential fraud sooner, minimizing any damage to your credit history. END
 TITLE: How to Protect Yourself If You’ve Been Scammed Online CONTENT: Contact Your Banks and Credit Card Companies\n--------------------------------------------\nIf the scam involved your credit card information or login credentials for your financial accounts, contact your banks and credit card companies immediately to cancel your cards and receive new ones.\nWhile you're getting help with this process, ask the representative to check your recent transactions to make sure you recognize them. If there are some that you don't, you can flag them as fraudulent.\nAlso, take some time to change your online passwords to stop the criminal from accessing your accounts. If you use the same password on more than one website, update each account with a unique password to make it more difficult for hackers to crack.\nIf you have many different passwords and need help keeping track of them, consider registering for a password manager like LastPass or 1Password. END
 TITLE: How to Protect Yourself If You’ve Been Scammed Online CONTENT: Reach Out to the Credit Bureaus\n-------------------------------\nThe three national credit reporting agencies, Experian, TransUnion and Equifax, maintain and provide access to your credit reports. If you think someone has obtained your personally identifiable information, especially your Social Security number, contact each of the credit bureaus to restrict access to your credit reports. Here's how.\n### Freeze Your Credit\nOne way to keep people from using your credit report fraudulently is with a credit freeze. Freezing your credit prohibits anyone from viewing your credit report, including creditors, unless you lift the freeze using a personal identification number (PIN) provided to you.\nThis means that if someone tries to use your information to open a fraudulent account in your name, the creditor won't be able to approve the application because it can't run a credit check.\nYou can request a free credit freeze on your Experian credit report through the Experian Security Freeze Center or by calling 888-397-3742. The other two credit bureaus provide similar methods to freeze your reports.\nOne drawback to freezing your credit is that it doesn't only prevent scammers from getting approved for credit—it prevents you from getting approved as well. But if you're not planning on applying for a loan or credit card anytime soon, it can provide valuable protection.\n### Request a Fraud Alert\nIf you don't want to go through this process with each credit bureau, consider placing a fraud alert on your credit reports instead. There are two types of fraud alerts you can place on your report after discovering that you've been scammed: an initial fraud alert and an extended fraud alert.\nUnlike credit freezes, you only need to request an initial fraud alert with one of the three national credit bureaus. The agency that receives your request will pass it along to the other two.\nThis alert, which you can request with Experian through the Experian Fraud Alert Center or by calling 888-397-3742, adds a notification to your credit reports for potential creditors. The message encourages them to verify your information before extending credit in your name. You can provide a phone number where creditors can reach you to verify your identity before they proceed.\nAn initial fraud alert remains on your credit reports for 90 days, and you can renew it as many times as you want. If you want an extended fraud alert, which lasts for seven years, you will need to contact each credit bureau to submit your request. You'll also need to provide an identity theft report, which includes an identity theft affidavit from the FTC and a police report (see below). END
 TITLE: How to Protect Yourself If You’ve Been Scammed Online CONTENT: Submit a Complaint to the Federal Trade Commission\n--------------------------------------------------\nBefore you file a police report, submit a report about the theft to the FTC. As you go through the process, you'll answer some questions about what happened, and the FTC will create a personal recovery plan to help you with the next steps.\nFrom there, you can create an account with the FTC, which can give you access to additional resources and help you keep track of your progress. It will also provide an identity theft affidavit, which you can use when you file your police report and then if you decide to request an extended fraud alert. END
 TITLE: How to Protect Yourself If You’ve Been Scammed Online CONTENT: File a Police Report\n--------------------\nThe process for filing a police report can vary depending on where you live. Check with your local police department to see if you can file a report online or if you need to submit a paper report in person.\nGo through the report and answer all the questions to the best of your ability. Then provide it to the police department using its approved channels.\nAfter you've filed the report, request a copy of it, especially if you're thinking about requesting an extended fraud alert on your credit reports. END
 TITLE: How to Protect Yourself If You’ve Been Scammed Online CONTENT: Monitor Your Credit\n-------------------\nAs you take these steps, your information will become less valuable to the scammer who stole it. If they steal a credit card number, for instance, canceling the card will immediately stop them from being able to use your line of credit. And if they have your Social Security number, placing a credit freeze or fraud alert on your credit reports can stop the thief from opening new accounts in your name.\nJust keep in mind that there are other ways a criminal can use your Social Security number, including filing fraudulent tax returns and health insurance claims. So keep an eye on those things as well, so you can report the fraud immediately if it occurs.\nThroughout this process, it's important to monitor your credit in case a scammer manages to use your information before you lock it down. Check your credit report regularly for potential changes that you don't recognize, and also keep an eye on your credit score in case it drops suddenly, which could be a sign that there's trouble.\nThere's no surefire way to stop identity theft, but if you keep track of your credit and follow the other steps listed above, you'll have a much better chance of recovering quickly from a scam. END
 TITLE: How to Place a Fraud Alert CONTENT: Fraud alerts are available through all three national credit bureaus (Experian, TransUnion and Equifax). Placing a fraud alert at any one of the bureaus automatically triggers alerts at all three.\nWhen you request a fraud alert, you must provide a copy of a state-issued ID card and a piece of mail, such as a utility or insurance bill, as proof of address. At the Experian Fraud Alert Center, you have the option to upload those items (and other supporting documents, if you're requesting an active-duty or long-term alert) as electronic documents or to submit them by mail.\nTo place a fraud alert at the Experian Fraud Alert Center, visit the webpage, select the type of alert you want, and follow the instructions on how to upload or mail in copies of your ID, proof of address and any other required documentation.\nIf you want to remove a fraud alert from your credit reports before they expire naturally, you must contact all three credit bureaus separately. (While the bureaus alert one another when an alert is activated, they do not do the same when one is removed.) Follow each bureau's instructions for removing a fraud alert, as procedures may differ by bureau. END
 TITLE: How to Place a Fraud Alert CONTENT: Does Placing a Fraud Alert Hurt My Credit?\n------------------------------------------\nPlacing a fraud alert on your credit report has no effect whatsoever on your credit standing. The requirement that creditors verify your identity may limit your ability to get instant approval on in-store or online credit card applications, or financing at in-store kiosks (at cellphone and computer retailers, for instance). A credit alert may require you to take a few extra steps, such as talking with a service rep in the store or by phone, but by law a fraud alert cannot prevent you from being approved for a loan or credit if you qualify for it.\nIf you suspect your personal information has been compromised or that criminals have stolen your identity or are trying to do so, placing a fraud alert on your credit report is an easy form of protection you can initiate yourself quickly and easily, and remove whenever you like. END
 TITLE: What Are the Warning Signs of Tax Fraud? CONTENT: Scammers can defraud you at tax time in several different ways. Many involve tax identity theft, where a person obtains your name, address and Social Security number and uses this information to file a tax return in your name before you do to steal your tax refund.\nPart of this scheme can involve creating fake federal W-2 forms that show you've withheld a lot of money—and will receive a large refund. Fraudsters will have the refund deposited into their bank account, which they'll likely close once they receive the funds.\nThis is just one form of tax fraud, and it doesn't always provide warning signs. But that doesn't mean you're powerless to detect certain types of scams. END
 TITLE: What Are the Warning Signs of Tax Fraud? CONTENT: How to Detect Tax Fraud\n-----------------------\nThe most common signs of tax fraud include:\n*   **Your return has already been filed**: Unfortunately, you may not be aware that you're a victim of tax fraud until it's too late. Here's what can happen: You file your return and wait for your refund. Then you get a rejection from the IRS telling that your information has already been used in a different return.\n*   **An unknown employer sends you a tax form**: You receive a W-2 or 1099 form from an employer you're unfamiliar with. The IRS may also reach out to you and inform you that this employer has paid you.\n*   **You receive a tax refund you didn't expect**: If you get a paper refund check in the mail that you didn't request, don't get too excited. A criminal may have had it sent it to you by accident when they wanted to have it sent somewhere else.\n*   **The IRS asks you to verify information**: If the IRS detects a suspicious tax return, it may send you a letter that asks you to confirm you're the one who is actually filing with your name and Social Security number.\n*   **You owe more money to the IRS but can't figure out why**: In the event the IRS states you owe them more money but you can't determine why after carefully reviewing your income or deductions, you may be a victim.\n*   **You use a new tax preparer who has odd requests**: This could include wanting you to sign your return before it's completed, not asking you for W-2s or requiring you to pay them instead of the IRS for taxes owed.\n*   **You get phone calls from the IRS demanding payment**: The IRS will never call you to request payment or ask for personal identity information. They also will not call you to tell you they're involving law enforcement in regard to your tax return. END
 TITLE: What Are the Warning Signs of Tax Fraud? CONTENT: What to Do if You Think You're a Victim of Tax Fraud\n----------------------------------------------------\nIf you believe you're a victim of tax fraud, don't panic. Fortunately, the IRS is on your side and there are things you can do to recover from the situation including:\n*   Complete the IRS Identity Theft Affidavit. This informs the IRS that you may be a victim of tax fraud and prompts them to investigate your case.\n*   File a report with the Federal Trade Commission (FTC). Visit IdentityTheft.gov and click on \"Someone else filed a Federal Tax Return using my information.\" Then, fill out the form and provide additional information such as your driver's license number to verify your identity.\n*   Report the scam to the Treasury Inspector General for Tax Administration.\n*   File a police report. The FTC recommends filing a police report. If you do so, make sure you include any documents and forms that are related to the fraudulent tax returns. The more information you can provide, the better.\n*   Consider placing a credit freeze with the three national credit bureaus (Experian, TransUnion or Equifax) to prevent scammers from using your personal information to open credit accounts in your name. To place a security freeze on your Experian credit report, go to the Experian Security Freeze Center. END
 TITLE: What Are the Warning Signs of Tax Fraud? CONTENT: Protect Yourself From Tax Fraud\n-------------------------------\nUnfortunately, you can't always prevent tax fraud. What you can do, however, is reduce your risk of becoming a victim of it. Be aware of the signs of tax fraud, keep your Social Security number private, file your taxes early and protect all your devices with strong passwords. Taking these preventive measures can save you headache and stress down the road. END
 TITLE: How to Report Identity Theft CONTENT: Report Identity Fraud to the FTC\n--------------------------------\nThe first stop to reporting identity theft is the Federal Trade Commission. The FTC has a designated identity theft website that offers step-by-step instructions to help victims reach mediation. The site allows users to report incidents of identity theft or follow up on specific types of data theft situations, such as data breach, tax fraud or stolen information. The site will then give you the opportunity to file an identity theft report, which is used by law enforcement agencies in their investigation. END
 TITLE: How to Report Identity Theft CONTENT: Consider Filing a Police Report\n-------------------------------\nFor many, the gut reaction to identity theft is to contact the police and report the crime. But local law enforcement may not be able to do anything, especially if the theft involves internet crime. However, the FTC, which acts as the primary law enforcement agency for identity theft, offers suggestions on when individuals should file a police report:\n*   You can identify the person who stole your identity or used it fraudulently\n*   You have specific information that can aid a police investigation\n*   Your identity was used fraudulently in an encounter with the police, like a traffic stop\n*   A creditor or other entity requires you to file a police report\nIf you decide to file a police report, take a copy of your FTC report and provide as many details as possible. END
 TITLE: How to Report Identity Theft CONTENT: Notify Credit Bureaus\n---------------------\nNext, report the incident to the credit bureaus (Experian, TransUnion and Equifax) so they know the identity theft has occurred. This allows the bureau to put a fraud alert on your credit report, which should lead to even greater diligence before approving any new accounts under your name. You can provide a phone number and request the bureau to reach out to you directly about new activity on the account. No need to contact all of the credit bureaus; once you notify one of the bureaus to request a fraud alert, that bureau will automatically notify the other two. END
 TITLE: How to Report Identity Theft CONTENT: Dispute Errors Caused by Identity Theft\n---------------------------------------\nIdentify theft can often result in a drop in your credit score and other errors, so you'll want to dispute any problems as soon as possible. To dispute items on your Experian credit report, you can begin by initiating a report at the online dispute center, by phone or by mail.\nTo dispute errors, begin a new form, click on the disputed information on your report, select the reason why you are disputing the information, and submit. Experian will provide updates throughout the process, which normally takes about 30 days.\nOnce the dispute is resolved, you'll learn whether the disputed information was deleted or remains because the information was deemed to be accurate. Filing a dispute won't impact your credit score, but you may see changes based on the final decision regarding the disputed information. If your disputed information remains in your file, you can appeal this, but you'll need to gather more information to prove your case. END
 TITLE: How to Report Identity Theft CONTENT: Protect Your Credit\n-------------------\nAfter you've reported the identity theft to the proper authorities and begun the process to settle disputes in your credit reports, you may want to take one or two more steps to continue to protect your credit. Those are to lock your credit or add a security freeze. You have to initiate the security freeze with all of the credit bureaus separately, and once frozen, you'll need to contact each again to lift the freeze if you're applying for a loan, credit card or other credit product that requires a credit check. All three credit bureaus also allow you to lock your credit when you enroll in their individual programs. Certain credit lock programs may also offer extra benefits such as credit monitoring. These options allow you to add protection to your credit and give you peace of mind.\nResolving identity theft isn't always easy, but following the reporting steps is a vital part of the process. Keep records of each step and of any proof you come across so you are able to prove your complaint and win your disputes. Then be patient. Resolving identity theft is a time-consuming process, taking weeks or months. The more you provide to authorities, the better they can resolve your case. END
 TITLE: What Is the Difference Between a Fraud Alert and a Credit Freeze? CONTENT: The type of fraud alert most often discussed as an alternative to a credit freeze is an extended fraud alert, or fraud victim statement. Intended for victims of credit fraud or identity theft, an extended fraud alert will stay on your credit report for seven years unless you have it removed sooner. When adding one to your credit report, you must provide a copy of a police report or other valid identity theft report submitted to law enforcement.\nAn extended fraud alert attaches a notice to your credit report that indicates you are a fraud victim. It asks any business seeking your credit report to contact you to confirm your identity before granting credit in your name. These could include:\n*   Credit issuers\n*   Landlords\n*   Potential employers\n*   Car insurance companies\n*   Car rental agencies\nAnyone can place a less stringent type of fraud alert known as a temporary fraud alert, or initial security alert, on their credit report at any time and for any reason (no criminal report is required). It notifies businesses requesting your credit report that you are a potential victim of identity theft and asks them to confirm your identity. A temporary fraud alert stays on your credit report for one year unless you cancel it sooner.\nA third type of alert, the active-duty fraud alert, is functionally identical to a temporary fraud alert, but is designed for service members on remote-duty assignments. Proof of military orders must be submitted along with a request for this type of alert. END
 TITLE: What Is the Difference Between a Fraud Alert and a Credit Freeze? CONTENT: How to Set Up a Fraud Alert\n---------------------------\nIt's free to set up fraud alert at all three national credit reporting agencies, Experian, TransUnion and Equifax. When you request a fraud alert at one credit bureau, fraud alerts are automatically added at the other two bureaus. You can have a fraud alert removed at any time, but you must contact each credit bureau separately to do so. When you do, you will need to submit proof of identity, just as you did when you set up the alert, to prevent identity thieves from impersonating you and removing a fraud alert from your credit report.\nFraud alerts are a great option if you want to be cautious, but know you'll need to authorize access to your credit reports when it needs to be accessed. Still, it's usually more convenient than cutting off access to your credit reports altogether with a credit freeze. END
 TITLE: What Is the Difference Between a Fraud Alert and a Credit Freeze? CONTENT: What Is a Credit Freeze?\n------------------------\nA credit freeze, or security freeze, is a more severe measure for protecting your credit file. Unlike a fraud alert, a security freeze prohibits potential new creditors (and others permitted by law to view your credit files or obtain your credit scores) from accessing your credit history unless you first lift the freeze.\nThere's not much reason to put both a credit freeze and a fraud alert in place, but if you did, no one would ever see the fraud alert until you removed the credit freeze. Access to your credit file is required for the fraud alert to be visible. END
 TITLE: What Is the Difference Between a Fraud Alert and a Credit Freeze? CONTENT: How to Freeze Your Credit\n-------------------------\nTo freeze your credit reports, you must submit requests to each of the three credit bureaus individually. Procedures vary somewhat at each, but they are essentially similar to those used at the Experian Security Freeze Center. As part of the freeze request, which can be made online or by phone, you will be assigned (or asked to create) a PIN code or password for use in unfreezing your credit file.\nWhen you provide a PIN or use a password to request removal of a credit freeze online or by phone, your credit file will be unfrozen, or \"thawed,\" within one hour. If you lose your PIN or forget your password, thawing is still possible, but it may take longer and require resubmission of proof of identity. END
 TITLE: What Is the Difference Between a Fraud Alert and a Credit Freeze? CONTENT: When to Unfreeze Your Credit\n----------------------------\nYou must unfreeze your credit file before applying for credit or other services that require access to your credit history, such as opening a new cellphone account or applying to renting an apartment. If you do not unfreeze your credit file before filing an application, the business will not be able to access your credit file or process your application.\nIf you have one or more credit applications pending, or if you plan to apply for new credit in the near future, consider postponing a security freeze. For lenders to process your credit application, you will need to unfreeze your credit report, either permanently or for a designated time period.\nIf you know which credit bureau or bureaus a lender will be using to check your credit, you can request from them a single-use PIN you'll provide to the lender to grant one-time access to your credit report. If you're shopping for the best lending terms you can get (as you always should when applying for loans or credit cards), it's virtually impossible to know which bureaus all your lenders will use, so the one-time PIN option isn't very practical. In that case, you're better off lifting your credit freezes at all three credit bureaus for a set time period—until at least two weeks after you send out your last application. END
 TITLE: What Is the Difference Between a Fraud Alert and a Credit Freeze? CONTENT: Which Option Is Right for Me?\n-----------------------------\nDeciding whether to set up a fraud alert or credit freeze depends on your situation:\n*   **If you're a victim of credit fraud or identity theft**, deciding between an extended fraud alert and a credit freeze is mainly a matter of how often you anticipate needing to authorize access to your credit files in the months and years ahead.\n*   **If you're early in your career and foresee applying for credit**—including car loans, mortgages or credit cards—in the next few years (or seeking an apartment rental, rental cars, or new utility or cellphone accounts), freezing your credit files may prove unwieldy. You may even find yourself lifting the freezes so often that they are practically ineffective. An extended fraud alert will likely be more useful for you.\n*   **If you're late in your career or in retirement**, and don't anticipate needing any new credit cards or loans, credit freezes can provide peace of mind in the knowledge that no one can touch your credit files. Keep in mind that you may need to thaw your credit files occasionally for non-lenders who conduct credit checks, such as cellphone, cable or internet providers.\n*   **If your minor children have credit files**, freezing those credit files on their behalf is a good precaution. Underage children do not ordinarily have credit files, but will if you've made a minor a cosigner on a credit card (a good strategy for helping them get a headstart on building a credit history), or if your children have credit files as a result of identity theft. You can thaw the files when the children come of age and are ready to begin seeking credit on their own.\n*   **If you're concerned your personal information may have been compromised** but haven't seen evidence of a crime you can report to law enforcement, consider a temporary fraud alert. If you're worried that your personal information—credit card and bank account numbers, account passwords or Social Security number—may have been exposed to scammers or in a security breach, you can add a fraud alert to all your files with one quick request to any credit bureau. You can remove it anytime you like, renew it easily every year if you prefer or, if there's no indication of any criminal meddling after a year, just let it expire and return your credit files to normal accessibility.\nFraud alerts and credit freezes are valuable tools for combating identity theft and credit fraud. It's good to familiarize yourself with both and be ready to use them whenever they meet your needs. END
 TITLE: How to Handle Bankruptcy and Divorce at the Same Time CONTENT: Is It Wise to File for Bankruptcy Before Getting Divorced?\n----------------------------------------------------------\nBefore putting divorce and bankruptcy into motion, you should understand that it's unlikely the two proceedings can truly take place simultaneously. You can file legal motions at the same time, but in most jurisdictions one case will take precedence over the other. If both cases are pending simultaneously, bankruptcy is typically suspended until the divorce court apportions marital debts and assets to each party.\nJuggling the two legal actions will only complicate your situation, so for simplicity's sake, you may want to consider filing for divorce before tackling bankruptcy. Certain circumstances, however, can make it more desirable to file bankruptcy first, and then address divorce.\nDeciding the best order in which to handle divorce and bankruptcy will depend on your financial situation and the laws that apply in the jurisdiction where you live. You should consult legal counsel before starting either process to determine which makes the most sense for you. In a nutshell, here are the advantages to handling divorce before bankruptcy, and vice-versa. END
 TITLE: How to Handle Bankruptcy and Divorce at the Same Time CONTENT: When Does It Make Sense to File for Bankruptcy Before Divorce?\n--------------------------------------------------------------\nA main advantage to filing bankruptcy before divorce is the potential for cancelling joint marital debts that would otherwise have to be divided up as part of divorce proceedings, and then tackled separately in each spouse's bankruptcy. A joint bankruptcy filing requires cooperation between the spouses, but it can significantly streamline the divorce process, reducing legal fees and time commitment for both parties.\nIn many states, a couple filing for bankruptcy can keep a larger portion of their assets than they would when filing for bankruptcy individually, after a divorce.  \nWhen Does It Make Sense to File for Divorce Before Bankruptcy?\n--------------------------------------------------------------\nThe main case for filing for divorce before bankruptcy has to do with meeting the qualifications in your state for Chapter 7 bankruptcy. In contrast with Chapter 13 bankruptcy, which cancels certain types of debt but requires negotiating with creditors to structure a yearslong repayment plan, Chapter 7 cancels qualifying debts altogether. To meet the qualifications for Chapter 7, your income must fall below than that of the median for your state. In households where one spouse earns most or all of the income, completing a divorce before filing for bankruptcy can enable both parties to qualify for individual Chapter 7 bankruptcies. END
 TITLE: How to Handle Bankruptcy and Divorce at the Same Time CONTENT: What Happens to Your Credit After Divorce?\n------------------------------------------\nWhether you pursue divorce or bankruptcy first, it's important to know going in that it may not be possible for either process to completely disentangle your finances from your soon-to-be ex-spouse's.\nFor example, Chapter 13 plans on marital debt may leave both parties legally responsible for repayments. There are also categories of debt that bankruptcy cannot discharge (student loans, for example), and if you or your spouse cosigned on such a loan, you may be equally responsible for seeing to it that those debts are paid, even after divorce and bankruptcy.\nBankruptcy has severe, long-lasting negative consequences for individuals' credit scores and eligibility for loans or credit cards. While divorce doesn't directly affect individuals' credit, the aftermath of divorce can lead to circumstances that bring down credit scores as well. Those situations—and the long road to recovery from the credit impact of bankruptcy—will only be complicated if either party withholds payments or otherwise uses joint debt to spite the other party.\nGetting through bankruptcy and divorce is never easy, but with a sound strategy and some good faith on the part of both spouses, it's possible to move on from them and start regaining a solid financial footing within a few years. END
 TITLE: What Is a Divorce Decree? CONTENT: How Does a Divorce Decree Work?\n-------------------------------\nMarriages, like most partnerships, are formalized with documents. A marriage license is the document that formalizes a marriage, and a divorce decree is the document that formally ends it.\nDuring your marriage, you and your spouse may have signed documents such as cardholder agreements, leases, promissory notes and other contracts that obligated you to make payments on debts and services.\nIf you and your spouse entered into these agreements together, then you are what's known as co-obligors. That means you and your spouse are equally liable for the repayment of your debts, despite what your divorce decree may say. A divorce decree may specify which partner should be making a payment each month, but joint responsibilities don't just disappear when you decide to end your marriage. The divorce decree does not change your status as a co-obligor, which means you'll face consequences if your partner doesn't hold up their end of the agreement. END
 TITLE: What Is a Divorce Decree? CONTENT: Does a Divorce Decree Absolve You From Any Debt Liabilities?\n------------------------------------------------------------\nDivorce decrees, while legitimate court documents, do not change or modify your agreements with creditors or service providers. Even if your ex-spouse has agreed to make payments on debts you both incurred, your divorce decree does not amend the original agreements with your lenders accordingly.\nYour lenders are rarely, if ever, a party to your divorce decree. As such, they are not bound by the terms of the agreement you made with your ex-spouse regarding who will make payments on your joint liabilities. In your lenders' eyes, you're both still liable.\nBecause both spouses are still liable for jointly incurred debts, they are likely to remain on both spouses' credit reports. And they will continue to influence your credit scores. If the accounts are paid on time after a divorce, a record of on-time payments will continue to appear on the obligors' credit reports. And, conversely, if the accounts are not paid on time a record of the late payments will also appear on credit reports belonging to both partners.\nFor example, you and your ex-spouse may have purchased a home with a joint mortgage loan while you were still married. During the divorce process, your ex-spouse agrees to\ntake the house and continue to make payments on the mortgage loan. If your ex-spouse does not make the payments on the loan as agreed, those late payments will show up on both of your credit reports since you are both still liable for the debt. END
 TITLE: What Is a Divorce Decree? CONTENT: Does Divorce Affect Your Credit Report or Credit Scores?\n--------------------------------------------------------\nYour marital status, including whether you've gone through a divorce, isn't noted on your credit reports. As such, going through the divorce process has no direct impact on your credit scores or your credit reports. The impact of a divorce is, instead, indirect and can only be caused by missed payments on joint liabilities and debt.\nThe indirect impact of a divorce will vary from person to person. For some, divorce is immaterial to their credit. For others, a divorce can be very destructive.\nRemember, joint accounts will still appear on your credit reports even if the court assigns payment responsibility to your ex-spouse. The only way to have those debts exhausted would be to either pay off the debt or to refinance the loan into only one spouse's name. That would effectively pay off the joint debt or create a new debt, but only in one spouse's name. This won't cause the former account to be removed from your credit reports, but it will cause a zeroing out of the balance and an end to any activity.\nTo the extent a divorce leaves you unemployed and without sufficient income, that can certainly cause you to lean more heavily on credit cards to make ends meet. This can lead to a higher balance relative to your credit limits, which can lower your credit scores. And you may start missing payments on your own accounts, which will eventually lead to potentially score damaging late payments. END
 TITLE: What Is a Divorce Decree? CONTENT: Be Prepared Before You File\n---------------------------\nIf you know you or your spouse will be filing for divorce, then it's not a bad idea to take some steps in advance to ensure your credit reports are as insulated from the process as possible. This may cause you to do certain things that you wouldn't normally do as it pertains to credit management practices.\nFor example, if you have joint credit cards, it might not be a bad idea to open one or two new cards only in your name. This will help protect your buying power if and when your joint credit cards are closed as part of the divorce process. Experian CreditMatch™ can pair you with credit cards that fit your unique credit profile.\nIf you have joint loans, such as a mortgage or an auto loan, those are more difficult to address. Unless you want to leave it to the court to determine who will be responsible for making payments on those debts you may want to consider disposing of the assets. That means selling your home and\/or car, possibly to your spouse, as this will eliminate the joint debts. This also eliminates the possibility that joint loan obligations, and their potential problems, will persist after your divorce has been finalized.\nYou may also want to sign up for Experian Boost™† as a strategy to increase your credit scores. Boost is a free service you can use to add your phone, utility and other accounts to your Experian credit report, which can help improve your FICO® and VantageScore® credit scores. END
 TITLE: How Do I Remove a Mortgage From My Credit Report After a Divorce? CONTENT: Does a Divorce Decree Remove a Mortgage From Your Credit Reports?\n-----------------------------------------------------------------\nWhen you go through a divorce, you and your soon-to-be ex-spouse will have to agree on certain aspects of your separation. Part of that agreement will likely be representations or commitments to the court that you will perform certain duties, such as continuing to pay your credit obligations. This agreement is called a divorce decree.\nA divorce decree is between you, your ex-spouse and the court. And contrary to popular belief, these decrees do not supersede or override your existing contracts with your creditors. As such, just because the divorce decree assigns payment responsibility for your joint mortgage to your ex-spouse, you're still legally liable for the debt.\nBecause you are still liable for the debt, the lender or servicer will likely continue to furnish the payment activity to the credit reporting agencies. Since it's on your credit reports, the mortgage loan will continue to be considered by credit scoring systems such as FICO. END
 TITLE: How Do I Remove a Mortgage From My Credit Report After a Divorce? CONTENT: What Can You Do to Remove a Mortgage From Your Credit Reports After a Divorce?\n------------------------------------------------------------------------------\nThe only way to have a current mortgage loan removed from your credit reports is if it is being reported incorrectly and you go through the process of disputing the loan. If the reported loan is legitimate, however, you'll have to have your name removed from the debt as a liable party before it will come off your credit reports. There are several ways get your name off a mortgage loan:\n*   **Refinance the loan.** If you're able to persuade your ex-spouse to refinance the loan into just his or her name, then you've accomplished your goal. A refinance would pay off the existing loan and create a new loan in just your ex-spouse's name. Once that has been accomplished, the old mortgage loan would be updated on your credit reports to show as being paid in full, and payment activity would cease. The new loan would not be included on your credit reports, as you would have nothing to do with it.\n*   **Sell the house.** This is obviously a more complicated choice because you'll need to find a willing buyer and move out of the house. If you are able to sell the house, you can use the proceeds from the sale to pay off the loan. Once you pay off your loan, it will be updated on your credit reports to show as being paid in full.\n*   **Pay off the loan.** This is the most difficult of the three options because it assumes you have the liquid funds needed to pay off a large loan all at once. If you or your ex-spouse pays off the loan, then there is no longer a debt or a mortgage associated with the house because you will own it outright. Once that has been accomplished, your mortgage loan will be updated on your credit report to show as being paid in full. END
 TITLE: How Do I Remove a Mortgage From My Credit Report After a Divorce? CONTENT: A Clean Break\n-------------\nAfter a divorce, despite what your decree may say, you're liable for mortgage debt with your name on it. If payments are not being made as agreed, your credit will suffer and the lender could pursue foreclosure to take your home.\nThe better option would be to refinance the loan, sell the house or pay off the loan. In any of these cases, you'd no longer be liable for the debt, and the record of the loan would remain on your credit reports in good standing. And that could help your credit scores. END
 TITLE: Who Is Responsible for Credit Card Debt in a Divorce? CONTENT: When you get a divorce, you are still responsible for any debt in your name. That means that if you and your spouse had a joint credit card, you are just as liable for that debt as your spouse. Beyond that, however, the details of how credit card debt from your marriage is handled in divorce can depend on several factors, including where you live.\nStates handle debt from a marriage in one of two ways: It's either considered \"community property\" or \"common law\" property. Generally speaking, states that follow common law property rules hold the spouse who incurred the debts responsible for its repayment. On the other hand, states that follow community property rules hold both spouses responsible for debts incurred during the marriage.\nMost states follow common law, which means that a court will hold you responsible for:\n*   Credit card debt that is solely in your name\n*   Joint credit card debt that is both in your name and your spouse's\n*   Credit card debt from an account that you cosigned for your spouse, even if it's not owned jointly\nCurrently, there are 41 common-law property states. If you live in Alaska, you can elect to have your assets treated as community property.\nThe other nine states—Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin—do things differently. These states follow community property rules, which means you and your spouse will be held equally liable for:\n*   Any credit card debts in your name (as a sole owner or jointly)\n*   Credit card debt you cosign for, even if it's not owned jointly\n*   Any credit card debt belonging to your spouse that was incurred during the marriage, even if your name is not on the account or you're not a cosigner\nSometimes, there are exceptions to the rules. During divorce proceedings, the judge has the right to assign a credit card debt to you, even if you aren't technically liable for it. For example, you could be on the hook for a credit card debt that's only in your spouse's name, depending on what it was used for. The same rule goes for your spouse—they could be held responsible for a debt that's solely in your name if the judge assigns the debt to them in a divorce decree, which is legally binding.\nThis can get complicated, however. A divorce decree won't change the contract on the debt, which means the original account holder will retain their responsibility as far as the creditor is concerned. If your spouse refuses to pay the assigned debt, the credit card issuer may come after you. The creditor has a right to continue their collection efforts since the original agreement was between you and the credit card issuer. A divorce decree does empower an ex-spouse to sue their former partner if they don't handle a debt assigned to them, though.\nAlso, know that if you have a joint credit card, you can't just remove yourself from the account. You'll either need to pay off the balance or continue to make minimum payments until the card is paid off before you can close the account. END
 TITLE: Who Is Responsible for Credit Card Debt in a Divorce? CONTENT: How Will the Divorce Impact My Credit Score?\n--------------------------------------------\nYour marital status won't appear on credit reports, so it won't affect your credit scores. Joint accounts with your ex-spouse will have an impact, though, and could affect their credit score and yours for better or worse depending on how the account is managed. Accounts that you cosigned for your spouse or that listed you as an authorized user will also appear on your report as long as they remain open. This means if they make payments late, skip them altogether or run up the balance, your credit will be affected.\nIt's important to remember that divorce doesn't absolve you of your responsibility for accounts with your name on it, despite what your divorce decree may say. Even if your divorce decree assigns your former spouse responsibility for certain accounts in your name (or in the name of both partners), any missed payments or default on an account with your name on it will still be reflected on your credit reports.\nAccount payment history is an important factor in your credit scores, and late payments on accounts as a result of divorce can drag your scores down. That's why it's important to make sure you fully understand your debt obligations throughout the divorce process. If your former spouse is responsible for paying an account with your name on it, communicate with them to make sure the account is being managed responsibly. END
 TITLE: Who Is Responsible for Credit Card Debt in a Divorce? CONTENT: Am I Responsible for Other Forms of Debt in a Divorce?\n------------------------------------------------------\nCredit cards aren't the only forms of debt you have to worry about in a divorce. You could also be responsible for other debts, including car loans, student loans, personal loans, mortgages and business debts.\nThe same rules explained above also apply to other debts, including how debts are handled with regard to common law or community property rules. If you have questions about the specific types of debt involved with your divorce, talking to your creditor and divorce lawyer can help you clear things up.\nUnfortunately, it's not uncommon for divorce to be accompanied by bankruptcy. If this is the case with your situation, it may be simpler to delay bankruptcy until your divorce is settled. There could also be a case to be made for filing bankruptcy before your divorce if many of the debts in question are held jointly. Be sure to review your finances, and consult with an expert if necessary, before deciding what's best for you. END
 TITLE: Who Is Responsible for Credit Card Debt in a Divorce? CONTENT: How to Protect Your Credit During a Divorce\n-------------------------------------------\nDivorces are never fun, and handling debt after you part ways with your ex-spouse can be challenging. If possible, work with them to pay off and close existing joint accounts or inquire with the creditor about converting the account to an individual account to protect your credit during a divorce.\nAlso, check with creditors to confirm that your spouse is not listed as an authorized user on your accounts—if so, have them removed immediately to prevent unauthorized charges. If credit card debts were assigned to your ex-spouse through a divorce decree and they are not cooperating, try to make timely payments for at least the minimum amount due to avoid damage to your credit score. END
 TITLE: Who Is Responsible for Credit Card Debt in a Divorce? CONTENT: Stay on Top of Your Credit in a Divorce\n---------------------------------------\nYou can also keep tabs on your credit report with credit monitoring from Experian. It's free, and you'll get real-time alerts any time your credit report is updated. You'll also have access to an interactive FICO® Score☉ tracker to help you stay on top of your credit score and track changes over time. END
 TITLE: How to Pay for a Divorce CONTENT: Consider Applying for a Personal Loan\n-------------------------------------\nIf you have good to excellent credit, and you can evaluate ahead of time how much your divorce is going to cost you, a personal loan can be a good option.\nA personal loan can help you beyond just legal fees—you can use it to pay for any expense. While you could put expenses on your credit card, personal loans typically come with lower interest rates if your credit is in good shape.\nMoreover, a personal loan might allow you to borrow a larger sum than your current credit card's limit would offer. A loan is especially helpful when you need a significant amount of money to cover your divorce costs and need several years to pay it off. You'll repay a loan in fixed monthly installments, which makes it easier to budget for.\nIf your credit scores could use some work, a personal loan might not be the best choice. While it could be possible to qualify, a high interest rate could greatly increase the cost of borrowing. It's also important to make sure the loan is within your budget. Missed or late payments will hurt your credit score and financial standing, only adding to the stress of divorce. END
 TITLE: How to Pay for a Divorce CONTENT: Look Into Peer-to-Peer Lending\n------------------------------\nPeer-to-peer (P2P) lending is an alternative to traditional banks and credit unions. It works by pairing investors willing to issue a loan with potential borrowers who are likely to agree to their terms. The main advantage of loans through a P2P lender is they may offer lower interest than are offered by traditional loans. However, that's not their only benefit.\nA P2P loan is relatively hassle-free. The application process is simple, and everything is handled online. It starts with a preapproval screening that generates loan offers using a soft inquiry to check your credit. Unlike hard inquiries, soft inquiries don't hurt your credit score. That gives you an opportunity to shop around, compare loan terms and choose the best offer.\nOnce you review your options and accept one of the offers, the lender normally performs a hard credit inquiry and may ask you for additional information, which you'll submit online. It can take a few days to get the lender's decision. Once you're approved, you'll set up a payment process.\nWhile P2P lenders may have advantages over traditional credit sources, they also generally have stricter credit and income requirements. If you're not sure you can meet them, it might be a good idea to look into alternative options. END
 TITLE: How to Pay for a Divorce CONTENT: Borrow From Friends and Family\n------------------------------\nWhen you're going through a divorce, there's nothing wrong with asking for help from those closest to you. You don't have to go it alone: Your friends and family might be able to offer not only emotional support, but financial support too.\nBefore you ask relatives or friends to lend you money, however, you should make sure you have a plan to pay it back. Such a loan may be interest-free, won't require a credit check and won't hurt your credit if you fail to repay it. Still, reneging on your loan can definitely damage your relationship with people who are dear to you. END
 TITLE: How to Pay for a Divorce CONTENT: Other Ways to Cover Divorce Costs\n---------------------------------\nWhile financing your divorce can help you pay for it, there are actions you can take to make it more affordable. Look into these options to potentially reduce the costs. END
 TITLE: How to Pay for a Divorce CONTENT: The Bottom Line\n---------------\nDivorce can be hard not only emotionally, but financially as well. Fortunately, you have options that can make it easier to pay for the various costs associated with dissolving a marriage. No matter your income and credit score, there are resources out there that can help you figure it out.\nWhile money problems can bring a lot of stress, it's wise to focus on yourself and work to build your new life instead. END
 TITLE: What Happens to Your Credit When You Get Married? CONTENT: How Does Marriage Affect Credit?\n--------------------------------\nMarriage has no effect at all on your credit reports or the credit scores based upon them because the national credit bureaus (Experian, TransUnion and Equifax) do not include marital status in their records.\nYour borrowing and payment history—and your spouse's—remain the same before and after your wedding day. There is no such thing as a couple's credit report or score, but individual credit histories and credit scores for both spouses are considered whenever the couple applies for a loan together. END
 TITLE: What Happens to Your Credit When You Get Married? CONTENT: Does Marrying Someone With Bad Credit Affect Your Score?\n--------------------------------------------------------\nWhile marriage in and of itself has no impact on credit scores, common practices of married couples—seeking joint car loans or mortgages, opening joint credit card accounts, or adding a spouse as a cardholder on individual accounts—can affect both spouses' future credit. Each borrower on any joint loan or account is equally responsible for repaying associated debts, so usage and payment activity on those accounts is reflected in both spouses' credit reports and scores (for better or for worse).\nEach spouse's individual credit history also can affect the cost of joint loans and credit cards. Borrowing jointly allows lenders to consider both spouses' income when determining the amount they're willing to lend, but if one spouse's credit is significantly worse than the other's, lenders may charge more in interest and fees than the spouse with good credit could otherwise get on their own. Of course, applying for a loan with a single income might only qualify a borrower for a lower loan amount than the couple could get jointly, as well.\nEven worse, if one spouse's credit is extremely poor, as might be the case following a bankruptcy filing or mortgage foreclosure, the couple might not qualify for a joint loan at all, even if the other spouse has very good credit. END
 TITLE: What Happens to Your Credit When You Get Married? CONTENT: Will Changing Your Name Impact Your Credit?\n-------------------------------------------\nTaking your spouse's surname when you get married will not affect your credit, but you should notify your existing creditors and the Social Security Administration about the name change. You do not need to notify the credit bureaus; they will update your name on your credit report when creditors start reporting activity under your new name. When that happens, your old name will be added as a name by which you were formerly known—an alias.\nCheck your credit reports within a few months of notifying your creditors of your new name. In the unlikely event that your name hasn't been updated on your credit file, or has been updated incorrectly, you can file a dispute with the necessary credit bureau or bureaus to get the record corrected. END
 TITLE: What Happens to Your Credit When You Get Married? CONTENT: Do You Share Debt When You Get Married?\n---------------------------------------\nDebts you and your spouse acquired before marriage remain your individual responsibilities. After marriage, you'll undoubtedly assume some joint debts, but the extent and nature of those debts can depend on the state you call home. The so-called \"community property\" states—Louisiana, Arizona, California, Texas, Washington, Idaho, Nevada, New Mexico and Wisconsin, along with Alaska, which lets couples opt in to community property rules—consider both spouses equally responsible for all assets and debts acquired in the course of the marriage. That includes debts and other liabilities racked up by either spouse, even if the other spouse is unaware.\nResidents of the remaining states, as well as Alaskans who choose not to opt in to community property rules, follow \"common law\" rules, under which spouses can assume debts and own property as individuals but also take on joint debts that benefit both parties (and any children) as a family. END
 TITLE: What Happens to Your Credit When You Get Married? CONTENT: Should You Merge Your Credit Accounts?\n--------------------------------------\nOnce you've shared your credit histories with each other, you and your spouse will need to decide whether or not to merge all your financial accounts. Many couples do so because consolidated accounts can simplify record-keeping and make it easier to prepare joint tax returns. When considering whether to combine your finances, it's good to keep the following in mind:\n*   Both of you will be responsible for all debt incurred in any joint credit accounts.\n*   Regardless of who incurs the debt, a missed payment on a joint account will negatively affect both of partners' credit reports.\n*   If either spouse misses a payment on their individual account, that may impact your ability to borrow jointly.\nIf you decide to consolidate your accounts, you might want to keep at least one credit account in your own name as a safeguard in the event of an emergency. (No one likes to think of this, but keeping an individual account can also be helpful in the event of divorce, as it can be a good basis for rebuilding your credit history.)\nThe key to successful credit management as a couple is understanding that individual credit behavior can affect both partners. END
 TITLE: How to Get Started With Credit in College CONTENT: Get a Secured or Student Credit Card\n------------------------------------\nA secured credit card can be a great option if you don't yet have a credit history and don't qualify for an unsecured credit card. The biggest difference between the two is that with a secured card, you have to put down a security deposit to guarantee your credit line.\nOftentimes, your credit line will be the same amount as the deposit—so if your deposit is $250, that's how much you can spend. Once you've established a history of on-time payments, the bank or card issuer may give you the option to switch to an unsecured credit card, meaning one that doesn't require a deposit. In that case, you'll get your deposit back and have a standard credit account. The better your credit gets, the more likely you are to qualify for unsecured credit cards based on your credit score and history.\nThe benefit of a secured card is that it's easy to get even if you have little to no credit history—or a \"thin file\" in credit-speak. Even better for building credit history, the issuer will likely report your account activity to the three main credit bureaus (Experian, Equifax and TransUnion), just as they do with unsecured credit cards. Just be sure to check any secured cards you're considering to find out whether they do report to all three bureaus (some may report to just one or two). That's how you build credit history, so it's important to pay your bills on time and avoid maxing out your credit line. On-time payments and low credit usage are two of the biggest factors that go into calculating your credit score.\nIf you're 18 or older, enrolled at a college or university, and earn an income (even from a part-time job), you may qualify for an unsecured student credit card. You're likely to get a lower credit limit with a student card than with a standard credit card, usually $1,000 or less. But that can actually be a good thing. Lower credit limits mean less risk for lenders, and less risk means they can be more flexible in their approval criteria. Another perk of student credit cards is that they sometimes include bonuses such as discounts on school-related expenses and even cash back rewards. END
 TITLE: How to Get Started With Credit in College CONTENT: Join a Credit Card Account as an Authorized User\n------------------------------------------------\nYou can also build credit by asking your parents or a loved one to add you as an authorized user to one of their credit card accounts. Becoming an authorized user doesn't require a credit check, so that's one hurdle removed.\nThe primary cardholder's credit line and payment history will show up on your credit report when you become an authorized user, so this can be a great way to bulk up your credit profile. Ideally, they'll add you to an account that has been open for several years and which has a high credit limit or a low balance.\nBecoming an authorized user will only help you if the primary user's account is in good standing and you know that they're able to make their payments every month. If your parents sometimes miss their due dates, being added to their credit card could hurt your credit score.\nKeep in mind that if you do ask to be added to an account and are given a credit card, your parents or other loved one will be able to see everything you buy and how much you're spending. You may want to discuss any ground rules or expectations they have about how you'll use the card before they add you. That will help you avoid conflict when the bills start coming. END
 TITLE: How to Get Started With Credit in College CONTENT: Get a Credit-Builder Loan\n-------------------------\nA credit-builder loan not only helps you, well, build credit, but it also helps you establish savings. When you take out a credit-builder loan, you don't receive any money right away, the way you would with a traditional loan. Instead, a lender sets aside the loan amount—usually between $300 and $1,000—in a savings account. You pay monthly installments toward that amount until your \"repayments\" match the number in the savings account. Then you can withdraw the money, which can be really helpful for buying books, putting a security deposit on an apartment or saving a down payment for a new car.\nThe best part is, your lender will report your monthly payments to the three credit bureaus, so you can establish a good credit history while saving money. You will need to show proof of income to qualify for a credit-builder loan, so if you don't have a job, you may need to become an authorized user on an account or take out a secured credit card instead.\nThe key to making a credit-builder loan work for you is to request an amount that has manageable monthly installments. So, if you have a part-time job and only work a few hours a week, you may want to request $300. With a 12-month repayment period, you'll only owe $25 a month, which is fairly manageable. If you ask for a $1,000 loan, your payments will work out to about $83 a month—a pretty big jump.\nDifferent lenders offer varying repayment periods, but your goal with a credit-builder loan is to establish a history of on-time payments, so don't overburden yourself. Once you've reached a good credit score (aim for 670 or higher), you can qualify for credit cards and loans with higher limits. END
 TITLE: How to Get Started With Credit in College CONTENT: Practice Good Credit Habits\n---------------------------\nAlthough building credit in college will open financial doors for you post-graduation, it has another benefit as well. It helps you establish good credit and money management habits, which are crucial to your financial health.\nHere's what to do:\n1.  Pay bills on time. Making on-time payments has a huge impact on your credit score and is one of the top factors in whether lenders will work with you. Even if you can only make your minimum payments each month, be sure to submit them by the due date. Better still, set up autopay on your accounts so you never have to worry about missing a payment or owing late fees.\n2.  Create a budget. Make a list of your monthly expenses and compare it to your income. If you spend more than you earn, look for ways to trim your expenses so you can always make your credit card or loan payments. In the best-case scenario, you'll pay off your entire balance each month so you don't accrue interest—but at least factor your minimum payments into the budget.  \n    If you're charging items such as groceries and gas, factor those expenses into your budget and use the money you've set aside for those to pay off your cards every month. Avoid the trap of charging items and only paying your minimums without knowing how much interest you're paying and how your balances are increasing.\n3.  Don't charge too many expenses. It can be tempting to put all of your expenses—books, groceries, phone bill and the like—on a credit card, especially if you earn rewards or cash back bonuses. But the more you charge, the higher your balance runs, making it more difficult to pay it down each month. High balances also raise your credit utilization ratio (how much of your credit you're using compared to your credit limits), which lowers your credit score.\n4.  Only apply for credit when you need it. Every time you apply for a credit card or loan, lenders will run a \"hard\" credit check, also known as a hard pull. These pulls appear on your credit report and may temporarily lower your score slightly. If lenders see too many pulls, they might think you're a high-risk borrower and deny your credit card or loan application.  \n    Limiting the number of accounts you have also keeps your own spending in check. When you're focused on just one or two cards or loans, you can avoid having several balances and paying high interest.\n5.  Ask for help. Budgeting and managing your money can be challenging when you're first starting out, so don't be afraid to ask for help. Your parents may be able to weigh in on your budget and offer some tips for trimming your spending. There are also lots of blogs, digital resources and online communities around budgeting and personal finance that can provide answers and guidance. END
 TITLE: How to Get Started With Credit in College CONTENT: Keep Track of Your Credit\n-------------------------\nOnce you open a credit card or loan account, you'll need to start the lifelong process of tracking your credit. This is easier than it sounds. You're entitled to a free credit report every year from each of the three credit bureaus, which you can order at AnnualCreditReport.com (you can get a report every week through April 2021). Review the reports to make sure you recognize all of the accounts that appear under your name, and double-check that there are no inaccuracies in your payment history. If you notice any false information, you should contact whichever bureau issued the report right away.\nYou'll want to keep an eye on your credit score throughout the year as well. A sudden drop in your score could indicate identity theft, missed payments or other issues. Experian offers a free credit monitoring service that will monitor your score and send you an alert when it changes, help you dispute fraudulent activity and recommend ways to increase your score.\nTracking your credit helps you boost your financial profile and prevent identity theft. Most important, it gives you control as you prove yourself to be a trustworthy borrower. END
 TITLE: How to Get Started With Credit in College CONTENT: Building Toward Your Future\n---------------------------\nThe decisions you make in college set the foundation for your post-graduation life, especially when it comes to your finances. Can you start building credit after you graduate? Of course. But you'll thank yourself if you've already established a good credit history and solid credit habits, because the transition will be that much easier. If you're ready to get started, sign up for Experian's free CreditMatch™ service to find the right credit card for you. END
 TITLE: Can I Pay for a Divorce With a Personal Loan? CONTENT: Is a Personal Loan a Good Option for Your Divorce?\n--------------------------------------------------\nDivorce attorneys can cost hundreds of dollars per hour, so their bills add up fast. In addition to lawyer and court fees, you might also need money to help starting your life over, finding and furnishing a new place. It's typically best to pay for these expenses with savings so you don't accumulate any new debt. But if your savings isn't sufficient, a personal loan could work.\nFor one, interest rates on personal loans are typically lower than those on credit cards. If you have excellent credit, you can score a very reasonable interest rate on personal loans. You'll still be paying interest every month, which adds to the overall cost of your divorce, but it might be much less than what you'd pay by putting it on plastic.\nA personal loan also usually gives you a larger sum than you're able to access via a credit card or savings. If you need a significant sum of money to pay for divorce expenses, it might be easier to do that with a personal loan than a credit card or other form of financing.\nAlso, unlike a credit card, a personal loan usually has fixed monthly repayments, and this predictability can make it easier to work it into your budget. With a loan, you're given one lump sum upfront that you'll repay in installments over time, usually over a period of several years. END
 TITLE: Can I Pay for a Divorce With a Personal Loan? CONTENT: What to Consider Before Getting a Divorce Loan\n----------------------------------------------\nBefore you apply for a personal loan to cover your divorce, it's important to think through the decision carefully.\nFirst, consider whether you can realistically qualify for a personal loan. If you have good to excellent credit, which means a FICO® Score☉ of 670 to 850, chances are solid that you can qualify for a personal loan with a low interest rate. If your credit is fair (a score of 580 to 669), you might be able to qualify for a personal loan, but your interest rate might be steep. For credit scores below fair, an unsecured personal loan might not be an option. Keep in mind that lenders also look for a stable income that ensures you'll be able to repay the loan.\nOn that note, before you take out a loan, look at the estimated monthly repayment and make sure it will fit into your budget. Late or missed payments will negatively affect your credit score, so only take on a divorce loan if you know you can repay it on time every month.\nAlso, remember that with a loan, you can't increase the amount later. If what you need might change or increase, it could be better to use revolving credit such as a credit card or line of credit, which lets you borrow only what you need.\nIf you're thinking about getting a personal loan for your divorce, make sure to shop around and compare your options. You'll find that loan amounts, terms, interest rates and fees can vary quite a bit from lender to lender. It's also worth comparing different types of lenders, such as banks, credit unions and online-only lenders, SoFi or Prosper for example. Online lenders usually have a faster approval and funding process than do traditional financial institutions and may be more lenient with credit requirements. END
 TITLE: Can I Pay for a Divorce With a Personal Loan? CONTENT: Other Ways to Finance Your Divorce\n----------------------------------\nIf you want to avoid taking out a personal loan for your divorce costs, you may have other options. You can:\n*   **Ask for an attorney payment plan.** When you hire a divorce lawyer, ask if they offer any sort of payment plan you can use to pay your fee over time to avoid coughing up one lump sum or hefty retainer. Some lawyers may be willing to work with you on this.\n*   **Get a court order.** By default, you're obligated to pay your own attorney and court fees. But before you take out a loan, see if your lawyer will petition the court to require your spouse to cover your legal fees instead. This petition is more likely to succeed if your spouse earns much more money than you or financially supported you, and could go through if they unnecessarily drag out litigation. If it doesn't look like a petition will be granted, you could try to obtain a court order that will let you liquidate your share of assets to pay attorney's fees and court costs.\n*   **Borrow from family and friends.** If you don't need a substantial amount of money to cover divorce fees, you could consider asking to borrow money from a family member or close friend. If you go this route, draw up a written loan agreement that states the terms of borrowing and repayment. Make sure the person knows when they'll be repaid, and how much interest you'll pay them (if any), and they may feel more comfortable lending you money.\n*   **Opt for an uncontested divorce.** A contested divorce, especially one that goes to trial, costs a boatload in legal fees. The uncontested divorce route isn't possible for everyone since it requires agreement between the two parties, but it can make the divorce far less expensive. Uncontested divorces, since they don't require the same amount of legal maneuvering, are generally much cheaper and wrap up much more quickly than contested divorces. You can even do the legal paperwork yourself in an uncontested divorce rather than hiring a lawyer, which could eliminate or severely reduce the need to borrow money to pay for a divorce. Other options include collaborative divorce or mediated divorce, which are less adversarial and could save you on court costs. END
 TITLE: Can I Pay for a Divorce With a Personal Loan? CONTENT: Explore Your Options\n--------------------\nIf a personal loan sounds like the best way to pay for your divorce, be sure to check your FICO® Score for free before you apply to see where your score currently stands. Knowing your credit score will give you a better sense of your likelihood to qualify.\nWith an online lender, getting prequalified typically doesn't affect your credit score. This means you can see if you'd qualify and what your interest rate would be without it putting a hard inquiry on your credit report, which is important since hard inquiries temporarily ding your credit scores. END
 TITLE: How to Get Your Credit Ready for a Mortgage CONTENT: Check Your Credit Reports and Scores\n------------------------------------\nThe first step in prepping your credit for a mortgage is learning where your credit currently stands. That means checking your scores, and getting your credit reports from all three credit bureaus (Experian, TransUnion and Equifax) to review the factors affecting them. You can get a free credit report from Experian, Equifax and TransUnion at AnnualCreditReport.com.\nReview each credit report carefully to make sure it accurately reflects your credit history. If you get all three reports at the same time, don't be surprised if there are minor differences between them. Your lenders may not report all of your accounts to every credit bureau, or may send updates to the credit bureaus on slightly different schedules. So there's no need to be alarmed if, for instance, your Experian report reflects the most recent payment on your credit card but your TransUnion report doesn't show it yet.\nHere are some things to look for when you get your reports:\n*   High account balances relative to your credit limits. Paying down your balances will help your credit scores.\n*   Past-due accounts, charge-offs and accounts in collections. If possible, bring all accounts current and pay off any outstanding collection accounts.\n*   Loans or credit accounts that shouldn't be there (which could indicate criminal activity), and payments incorrectly listed as late or missed. If any inaccuracy exists, follow the dispute process for the relevant credit bureau as soon as you can.\nAt the same time you're checking your credit reports, it's a good idea to take a look at your FICO® Score☉ (which you can get for free from Experian and other companies). A credit score distills the contents of your credit report into a three-digit number, so if there are improvements made in your reports, your score will likely increase once that information is reported to the credit bureaus. Credit scores play an important role in determining whether you qualify for a mortgage—lenders may decline applications from individuals whose credit scores are too low. Lenders also use credit scores to help set the interest rates they charge, with higher credit scores typically translating into lower interest rates.\nFor example, say you start out with a FICO® Score of 675. According to the FICO® Loan Savings Calculator, you could purchase a $300,000 home with a 20% down payment (total loan amount of $240,000) and qualify for a 30-year fixed mortgage with an interest rate of about 3.04% at national rates as of mid-November 2020. Boosting your score just a few points, to 680 or more, could qualify you for an interest rate of 2.83%—saving you nearly $10,000 ($9,924) over the life of the loan. Bringing your score up to 700 could land you a rate of about 2.65%, saving you an extra $18,000. And if you could get your score to 760, an interest rate of about 2.43% could help you save $28,000 over what you'd currently be paying.\nFor an even more complete picture of your credit scores and how to improve them, consider Experian's 3-Bureau Credit Report and FICO® Scores product. In addition to the ability to view your Experian credit report and the FICO® Score based on it, you'll see scores and explanations based on your credit reports maintained by the other two credit bureaus.\nWhen you receive your scores from Experian, you'll also get some explanatory notes on what's affecting them (called risk factors) and how you can make improvements. Those suggestions can help you find focus when making moves to improve your scores in the months ahead. It's also wise to be mindful of the main factors that affect _all_ credit scores, and to adopt habits that tend to promote score improvement.\nWhen preparing to apply for a mortgage, the following steps are generally advisable to all borrowers. END
 TITLE: How to Get Your Credit Ready for a Mortgage CONTENT: Stop Applying for New Credit and Limit Big Purchases\n----------------------------------------------------\nAnytime you seek new credit or take on new debt, the statistical risk that you'll fail to repay your debts—as it's perceived by lenders and credit scoring models—tends to climb. For that reason, a credit check associated with a credit or loan application could cause your credit scores to drop slightly, although they may not drop at all. Scores also tend to dip when you accept a new loan or credit offer. These reductions are commonly just a few points each, and your scores typically recover within a few months as long as you keep responsibly managing your credit, but even slight drops should be avoided when you're preparing for a mortgage.\nBeyond credit scores, mortgage lenders consider your total debt load in relation to your income, called your debt-to-income ratio, when deciding how much they're willing to lend you. For that reason, it makes sense to avoid making any major purchases with your credit cards leading up to a mortgage application.\nEven if you can pay cash, it's wise to avoid large non-emergency purchases in the year or so preceding a mortgage application, since lenders will also consider your savings—and because putting cash reserves toward the down payment on your home instead of spending it now could save you thousands of dollars over the life of your mortgage. END
 TITLE: How to Get Your Credit Ready for a Mortgage CONTENT: Reduce Credit Card Debt\n-----------------------\nIf avoiding new debt helps burnish your credit, it's probably no surprise to learn that lowering existing debt can also help your credit standing. Paying down credit card balances is a great way to address this. Paying them off altogether is an ideal goal, but that isn't always feasible within the span of a year or less. In that case, it's wise to be strategic about which balances to tackle when paying off your credit cards.\nOne of the biggest influences on your credit scores is credit utilization ratio—the percentage of your credit card borrowing limits represented by your outstanding balances. Understanding how credit utilization affects your credit scores can help you determine the smartest approach to paying down your current balances.\nYour overall credit utilization ratio is calculated by adding all your credit card balances and dividing the sum by your total credit limit. For example, if you have a $2,000 balance on Credit Card A, which has a $5,000 borrowing limit, and balances of $1,000 each on cards B and C, with respective borrowing limits of of $7,500 and $10,000, your total your utilization ratio is:\n($2,000+$1,000+$1,000)\n\\=\n$4,000\n\\=\n18%\n($5,000+$7,500+$10,000)\n$22,500\nYou also can calculate the utilization ratios on each individual card:\nMost credit scoring models start to ding your scores once utilization ratios near or exceed 30%. Total utilization is the most important factor—and paying down any portion of a card's balance reduces that—but the guideline also applies to utilization ratios on individual cards.\nIn our example, the total utilization ratio of 18% is well under 30%, but the ratio for Card A is significantly over that amount, at 40%. So when determining how best to pay down debt to promote credit score improvement, it'd make sense in this case to focus first on reducing Card A's balance.\nThe 30% figure is more of a general recommendation than a hard target. If you reduce your total utilization ratio from 32% to 29% you shouldn't expect a major surge in scores. Nevertheless, higher utilization typically leads to lower credit scores, and vice versa. END
 TITLE: How to Get Your Credit Ready for a Mortgage CONTENT: Focus on Paying Every Bill on Time\n----------------------------------\nAnother factor that plays a major role in your credit scores is payment history. Late payments—especially recent late ones—can significantly drag down your credit scores. So in the months leading up to mortgage application, make sure to pay every bill on time.\nIf timely bill payments are a challenge for you, consider using technology to help: Automated electronic payments from your checking account can help you avoid accidental late payments. Calendar alarms, text-message email reminders can help as well.\nDo whatever it takes, because lenders will likely see a late debt payment within the 12 months leading up to a mortgage application as a significant red flag. It might not prevent you from getting a mortgage, but it could mean you'll be seen as a relatively risky borrower, and that could mean higher interest costs. END
 TITLE: How to Get Your Credit Ready for a Mortgage CONTENT: Additional Ways to Improve the Odds of Mortgage Success\n-------------------------------------------------------\nCredit is a major factor in determining your ability to get and afford a mortgage, but it's not the only influence. Some other approaches you can take to boost your chances of mortgage success include:\n*   **Save for a larger down payment.** Lenders love borrowers who demonstrate good savings discipline, and the more cash you have to put down on your new home, the less you'll have to borrow—and the less you'll spend over the course of repaying your mortgage.\n*   **Resist seeking more house than you need—or can afford.** There's more to being able to afford a house than simply covering the monthly mortgage payments. You'll need some money in reserve each month to cover house-related maintenance and repair costs, in addition to everyday family-related expenses that often accompany homeownership. Take care to be realistic about what your savings and income will support, and shop for a home accordingly.\n*   **Consider using a mortgage broker.** If you're not getting mortgage offers you like through the traditional loan application process, working with a mortgage broker who's familiar with multiple lenders and their target borrowers could help match you to a lender and a loan that suits your needs.\nTaking steps today to prepare for mortgage applications in the coming year can make a significant difference in the number of mortgage offers you receive, and the total amount you'll pay on your mortgage loan. Putting your best credit profile forward can mean big savings as you begin the process of buying a new home. END
 TITLE: What Happens to Your Credit File When You Die? CONTENT: Where Does Your Credit File Go When You Die?\n--------------------------------------------\nAfter you die, your Experian credit file will eventually be closed, but it doesn't happen immediately. There are several ways the credit bureaus may be notified of your death:\n*   **By lenders**: When you pass away, your spouse or the executor of your estate should alert your creditors of your death. The next time the creditor updates your accounts with the credit bureaus, they will also report that you are deceased. (If you have joint accounts with your spouse, it's important the creditor is told that only one account holder has died, or your spouse may be mistakenly reported as deceased.)\n*   **By the Social Security Administration (SSA)**: The SSA periodically sends a list of the newly deceased to the three major consumer credit reporting agencies: Experian, TransUnion and Equifax. This file isn't comprehensive, however; it only includes people who were receiving Social Security benefits and whose deaths have been reported to the SSA. Typically, the funeral home will report your death to the SSA. Your spouse or estate executor can also choose to notify the SSA themselves by calling 800-772-1213 or going to the local SSA office in person.\n*   **By your spouse or estate executor**: Your spouse or your estate's executor may want to notify the credit bureaus of your death themselves. This can be faster than waiting for the SSA or lenders to do it. When the death is reported to one credit bureau, they will alert the others.\nOnce a credit bureau is notified that you've died, they'll flag your credit file with an indicator that you are deceased, which helps to prevent fraud. If anyone tries to apply for new credit in your name, lenders will be alerted that you are deceased so they know the applicant is trying to steal your identity and can take appropriate measures.\nYour credit file will not be closed or deleted right away. Leaving the file open with the deceased indicator flag on it is an important tool that can help prevent identity theft. If your credit file were deleted and someone applied for credit in your name, a credit check wouldn't reveal any information. With no way of knowing that the applicant was trying to commit identity theft, the lender might issue the thief credit in your name.\nAny credit accounts showing the deceased indicator will be deleted after seven years. Over time, all your accounts will be deleted and the credit report will no longer exist. END
 TITLE: What Happens to Your Credit File When You Die? CONTENT: How to Report a Death to the Credit Bureaus\n-------------------------------------------\nThe sooner your death is reported to the credit bureaus, the sooner they can flag your credit report, which helps to prevent fraud. Rather than waiting for the credit bureau to receive notice from the SSA or be notified when creditors send their account updates, your family may want to report the death to credit bureaus themselves.\nOnly your spouse or another person with legal authority, such as the executor of your estate, can notify credit bureaus of your death. They will need a copy of your death certificate; anyone other than your spouse will also need to show proof that they're legally authorized to act on your behalf, such as with a copy of a legal document with a court seal showing that they are the executor of your estate.\nWhen one credit bureau is notified of a death, they will notify the others, so there's no need to alert all three. Here's how to report a death to each credit reporting agency:\n*   **Experian**: Mail a copy of the death certificate to Experian's Consumer Assistance Center, P.O. Box 4500, Allen, TX 7501, or upload it online.\n*   **TransUnion**: Mail a copy of the death certificate to TransUnion, P.O. Box 2000, Chester, PA 19016.\n*   **Equifax**: Mail a copy of the death certificate to Equifax Information Services LLC, P.O. Box 105139, Atlanta, GA 30348-5139.\nIn addition to notifying the credit reporting agencies of your death, it's a good idea for your family to request a copy of your credit report from each of the three credit reporting agencies. Not all creditors report to all three of the credit bureaus, so getting this information will provide a list of accounts that your survivors can use to notify each creditor that you have passed away. END
 TITLE: What Happens to Your Credit File When You Die? CONTENT: Who Is Responsible for My Debt When I Die?\n------------------------------------------\nNow you know what happens to your credit file when you pass away, but what about your debts? Will your spouse be responsible for paying your bills? In most cases, the answer is no, but there are some situations where others may be responsible for your debt.\nAfter you die, any debts you owe are paid from your estate—a term that simply refers to all of the assets you owned when you died. If you had a will, the executor you named will use the money from your estate to pay any debts you left behind. If you die without a will, a judge will make decisions about how your debts will be paid and will select an administrator to execute those decisions.\nDebts are classified as _secured_ (collateral-backed loans, such as mortgages or auto loans) and _unsecured_ (debts without collateral, such as most credit card debts and student loans). In general, secured debts must be repaid or the collateral will be repossessed. If your estate doesn't have enough money to pay all your debts, debts will be prioritized for repayment, with secured debts having the highest priority. Your executor or administrator may have to sell certain assets to pay your secured debts, while unsecured debts may remain unpaid.\nYour spouse or another family member may become responsible for the following debts after you die:\n*   **Joint debts**: Any debt held jointly with your spouse will become their responsibility. This commonly includes mortgages, auto loans and lines of credit. Your spouse is also responsible for paying the balance on any joint credit card accounts, even if you, not they, incurred the charges.\n*   **Cosigned debt**: Anybody who cosigned on a loan, credit card or other debt for you becomes responsible for that debt if you die.\n*   **Home equity loan on an inherited house**: If you had an outstanding home equity loan on a house that you left to an heir, they will be responsible for repaying the loan after you die.\n*   **Timeshares**: If you owned a timeshare and put your heirs' names on the deed, they will inherit the timeshare—and the responsibility for any associated maintenance fees.\n*   **Medical debt**: Did a spouse or other family member sign documents authorizing your medical treatment? Depending on the state where you live and the wording of the documents, they may have accepted legal responsibility for any medical bills your health insurance didn't cover.\nIf you had a credit card in your name only, your spouse is not responsible for the debt. A spouse or child who was an authorized user on your credit card is not responsible for that debt, either.\nThere may be some exceptions to these rules if you live in a community property state. There are nine such states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. Spouses in Alaska can choose to hold their property in common. Under community property laws, any debt that one spouse incurs is typically also the responsibility of the other. Because laws on community property may vary from one community property state to another, your heirs should consult an attorney with experience in estate law or check with your state attorney general's office to determine their obligations.\nWorried that your spouse will have to use your life insurance to pay off your debts? Don't stress. Life insurance proceeds are protected from creditors when you die, as are:\n*   **Retirement accounts**: These include employer-sponsored 401(k) or 403(b) plans, Solo 401(k)s, SEP IRAs, Simple IRAs, Roth IRAs and health savings accounts (HSAs).\n*   **Brokerage accounts**: These include any taxable investment accounts opened with a brokerage or investment firm. Brokerage accounts may invest in stocks, bonds, REITs, CDs or other investment vehicles.\n*   **Living trust**: Placing your assets in a living trust means your estate doesn't have to go through probate, a potentially costly and time-consuming court proceeding. Depending on the type of trust you choose, certain assets may also be protected from creditors after you die. END
 TITLE: How to Teach Your Kids About Money and Credit CONTENT: When Should Kids Start Building Credit?\n---------------------------------------\nIdeally, a strong credit profile should be established by the time a young person graduates from college or needs to start making independent financial decisions on their own, such as renting an apartment or applying for a car loan. That means the late teen and college years are ideal times to build good credit.\nBut it's possible to start building credit even earlier. Credit card issuers may allow minors to be added as authorized users to their parents' credit cards, for instance. American Express allows children aged 13 or older to become additional cardmembers, and there's no minimum age requirement for Capital One or Chase cards. Some issuers are more restrictive; Barclaycard, for instance, requires authorized users to be at least 18.\nAs an authorized user, your child will be able to make purchases on your account, but won't be responsible for paying them off. That means it's likely best to give them access to their own credit card when they're old enough to have a clear understanding of credit and debt. Until then, their credit profile will benefit from your own positive payment history on the account. Some credit issuers allow cardholders to set spending limits for authorized users, so you might explore this option if you'd like some guardrails. END
 TITLE: How to Teach Your Kids About Money and Credit CONTENT: How to Help Your Child Build Good Credit Habits\n-----------------------------------------------\nKids can start learning about good credit habits before they have access to any credit products of their own.\nFor instance, when you use a credit card at the grocery store, you can explain that even though you're not using cash, you're still responsible for paying the amount you owe. Or, perhaps you and your partner have a weekly or monthly family budget meeting. You can let your child know that this is the time when the family ensures their savings and debt repayment goals are in order. Your child does not need to know all the details of your finances, but simply expressing the importance of spending responsibly, making on-time payments and keeping your credit utilization low can go a long way.\nOther strategies can include allowing your child to earn money for doing chores around the house and helping them split their earnings into savings and \"fun\" money they can spend on things like video games or movies. The Consumer Financial Protection Bureau has money lessons by age group available in its Money as You Grow toolkit. END
 TITLE: How to Teach Your Kids About Money and Credit CONTENT: How to Teach Your Kids to Be Smart With Money\n---------------------------------------------\nAs you raise a kid, you'll have many opportunities to teach them smart money habits. The right strategy and level of sophistication will depend on their age, but to start, stay mindful of real-world experiences that can lead to teaching moments.\nFor instance, perhaps your child wants a pet. Along with discussing the responsibilities and lifestyle changes that come with having a pet, brainstorm with your child what it would cost. Make a list of line items for the family budget, such as food, toys and veterinarian visits, and add up what those could cost per month, and how they fit into your budget. Talk about how your child could perhaps save up money to buy the pet a new toy. This can help your child understand that planning and budgeting are important elements of money management, but that it's also OK to spend money on things you enjoy. If money's tight and a pet would cause you to live beyond your means, understanding the money factor in your decision to say no could soften the blow.\nTalking to your kids about money is especially important as they get older and have a stronger understanding of concepts like debt, taxes and investing as they start working and saving. You can move from broad discussions as they come up in everyday life to more specific conversations about the cost of car ownership, college, how to budget while at school and how to minimize student loan debt. END
 TITLE: How to Teach Your Kids About Money and Credit CONTENT: Getting Your Kids Started With Credit Cards\n-------------------------------------------\nWhile a child can be added as an authorized user to a parent's credit card from a young age, depending on the issuer, that doesn't mean it's the right choice for your family. Perhaps you'll choose to restrict access to the card until the child is mature enough to understand the consequences of running up credit card debt, or have a rule that the card is only to be used in the case of emergency. Maybe you allow the child to buy something on the card once per month under the watch of a parent who can help give context to the purchase.\nBut once your child turns 18, they may be able to open a credit card of their own. They may, however, have to start with a secured credit card, which requires putting down a cash deposit that becomes the card's credit line. It's a smart option as an alternative to authorized-user status, and as an additional credit-building method. Secured cards often come with a low credit limit, which provides some built-in protection against pricey purchases, but can cause a headache if it leads to consistently high credit utilization. Also, not all credit card issuers report authorized-user activity to the credit bureaus. So if your credit card activity won't help your child build a credit report and score, consider a secured card instead.\nSetting your child up with his or her own credit card could be a good opportunity to put your budgeting and saving lessons into practice. Perhaps you'll decide that the child must pay for all their own purchases using their allowance or money from work, if they're old enough. That can help your child start the process of making sound spending decisions based on what they can afford, rather than what they feel pressured by peers or advertising to buy. END
 TITLE: How to Teach Your Kids About Money and Credit CONTENT: Can a Child Have a Credit Report and Score?\n-------------------------------------------\nYour child could have a credit report and score if you added them as an authorized user to one of your credit card accounts. In that case, the credit bureaus will have received payment and balance information from your account, and as long as you made payments on time and kept your debt levels low, the information on your child's report will likely be positive.\nBut if you did not work to build your child's credit file, there's also a possibility that your child will have a credit report if they were a victim of identity theft. That means that a thief set up fraudulent addresses or bank accounts, or used the child's Social Security number and other personal information, to open up credit accounts in your child's name. When those financial accounts go unpaid, your child will be left with negative credit information before they've had the chance to make their own credit decisions.\nBut credit bureaus—including Experian—have safeguards in place in case a credit report has been requested on behalf of a minor (which could signal that a thief is trying to open a fraudulent account). Experian will alert the lender that the Social Security number associated with the credit report belongs to a minor to help keep the account from being opened. END
 TITLE: How to Teach Your Kids About Money and Credit CONTENT: How to Protect Your Child's Credit\n----------------------------------\nWhile it may come as a surprise that children can be the unwitting victims of identity theft, there are steps parents can take to limit that possibility. Many are the same as the precautions you'd take to protect your own credit: Keep their Social Security number safe, limit the amount of personal information you or your child shares online, and protect documents at home that could provide identifying information if they fall into the wrong hands.\nYou can also stay vigilant about the signals that identity theft has already happened: Is your child already receiving bills or credit card offers in their name? Has the government confirmed that someone with your child's Social Security number is already receiving benefits when you tried to apply? If you are concerned your child's identity has been compromised, contact the credit bureaus to see if there's a credit report in your child's name when there shouldn't be.\nYou can then dispute incorrect credit report information directly with the credit bureaus and take other actions. END
 TITLE: What Happens to Medical Debt When You Die? CONTENT: Who Is Responsible for Someone's Medical Debt When They Die?\n------------------------------------------------------------\nYour medical bills don't go away when you die, but that doesn't mean your survivors have to pay them. Instead, medical debt—like all debt remaining after you die—is paid by your estate.\nEstate is just a fancy way to say the total of all the assets you owned at death. When you die, the money in your estate will be used to cover your outstanding debts. If you had a will and named an executor, that person uses the money from your estate to pay your outstanding debts. If you didn't have a will, a judge will select an administrator to carry out the judge's decisions about how to distribute your estate.\nDebts must be paid before your heirs receive any money from your estate. If the value of your estate is equal to or more than the amount of your debt, your estate is _solvent_—that is, it can afford to pay the debt.\nIf you have more debt than assets, your estate is considered _insolvent_. In this situation, things get a bit more complicated. When you have more debt than your estate can cover, the court will prioritize payments to creditors according to federal and state laws. Some creditors may get the full amount they are owed; others may get partial payments or nothing at all. Your estate may have to sell some assets, such as your home or car, to pay the debts.\nIf you die with $100,000 in medical debt but have only $50,000 in assets, is your family responsible for paying the remaining $50,000? In most cases, no. If the estate can't pay your medical debt, the creditors generally write it off. However, there are some exceptions to this rule.\n*   **Cosigned medical bills**: When you seek medical treatment, you're generally required to sign paperwork promising to take responsibility for any bills your insurance doesn't pay. If someone else signed these papers for you, they could be held responsible for your medical bills. This varies depending on state laws and the specifics of the documents.\n*   **Filial responsibility laws**: More than half of states have laws that hold adult children responsible for financially supporting their parents if the parents can't afford to support themselves. These laws are rarely enforced, because Medicaid typically pays for medical care in these cases. However, Medicaid might pursue your estate to recover benefits (more on this below).\n*   **Medicaid estate recovery**: If you are a Medicaid recipient over age 55 when you die, federal law requires your state's Medicaid program to try to recover from your estate all the payments they made for your nursing facility services, home and community-based services, and related hospital and prescription drug services. Medicaid won't hold your survivors responsible for the repayments; any recovery will be made from your estate. If you are survived by a spouse, a child under age 21 or a blind or disabled child of any age, Medicaid can't pursue the repayments at all.\n*   **Community property states**: The nine community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. (Alaska gives both spouses the option to make their property community.) In community property states, spouses are generally held responsible for each other's debts, even if they did not incur the debts themselves. However, community property laws vary from one community property state to another, so you should speak to an attorney to determine responsibility for medical bills. END
 TITLE: What Happens to Medical Debt When You Die? CONTENT: What Happens to Other Forms of Debt When Someone Dies?\n------------------------------------------------------\nWhen someone dies, there are often other debts related to medical expenses. It's important to understand your responsibilities for these debts.\n*   **Nursing home debt**: In the past, nursing homes often required a third-party guarantee of payment before they would admit a resident. If a family member or friend signed as guarantor, they would be responsible for any nursing home bills after the resident's death. Federal law passed in 2016 makes it illegal for nursing homes to require or even request a third-party guarantee. However, it's important for family members to read any admission papers carefully before signing them, as nursing homes may use vague or confusing language to hold family members responsible for payment.\n*   **Mortgage or home equity debt**: You may have taken out a second mortgage or a home equity loan to finance your medical care. If your spouse was also on the loan, they will be responsible for paying it off after you die. If you leave the house to an heir, they may inherit the debt along with the house.\n*   **Cosigned personal loans**: Suppose you took out a personal loan to pay for your medical care. If someone else, such as your spouse or child, cosigned with you on the loan, they are responsible for paying those bills after you die. Because your cosigner is still around to handle the payments, your estate has no responsibility for the debt.\n*   **Credit card debt**: In some cases, you might use credit cards to pay for medical care; there are even credit cards designed specifically for this purpose. Any joint credit card accounts you held with your spouse will remain their responsibility after you're gone. (Authorized users on your credit card account are not responsible for the debt.) END
 TITLE: What Happens to Medical Debt When You Die? CONTENT: How Do You Notify Creditors of a Death?\n---------------------------------------\nOnce the extent of your debts has been established, your surviving family members or the executor of your estate will need to notify creditors of your death. Once they've been notified, creditors usually stop trying to collect unpaid bills until the estate has been sorted out.\nYour creditors may inform the major credit bureaus of your death; the Social Security Administration also periodically notifies credit bureaus of the deaths of people with Social Security numbers. Your survivors or executor can also contact the credit bureaus directly to report your death. They'll be asked to provide a copy of the death certificate. Anyone other than your surviving spouse will also have to provide evidence they're authorized to act on your behalf—for example, a copy of a legal document with a court seal indicating they are the executor of your estate.\nAs soon as a credit bureau is aware of your death, your credit report will be flagged to indicate that you're deceased. This helps prevent identity theft. If anyone applies for credit using your information, the credit bureaus will be alerted of the attempt and can stop the transaction. END
 TITLE: What Happens to Medical Debt When You Die? CONTENT: Can the Death of a Relative With Medical Debt Affect Your Credit?\n-----------------------------------------------------------------\nIn most cases, the death of a parent or other relative with medical debt will not affect your credit, because you are not personally responsible for the debt. However, if you cosigned on medical debt, live in a community property state, or live in a state with filial responsibility laws, and the deceased's estate is insolvent, it's possible you could be personally liable for the debt. How will that affect your credit?\nMedical debt is treated differently than most other types of debt. It won't show up on your credit report even if you pay late or the provider's internal collections department starts contacting you asking for payment. Problems arise, however, if the medical provider sells the debt to a third-party collection agency. If that happens, there is a 180-day grace period before the medical collection account will appear on your credit report.\nTaking action within that 180-day window is critical to keeping your credit score healthy. Use this time to get any billing errors corrected or work with the deceased's health insurance to pay the bill. If you can't get insurance to pay the bill, contact the medical provider to resolve the issue. You may be able to negotiate to lower or cancel the bill or work out a payment plan. Whatever you do, don't ignore medical bills. Collection accounts related to unpaid medical debt will stay on your credit report for seven years from the original delinquency date, which can significantly damage your credit. END
 TITLE: What Happens to Medical Debt When You Die? CONTENT: Protect Your Estate and Your Heirs From Medical Debt\n----------------------------------------------------\nSorting out an estate after a family member's death can be complicated; dealing with unpaid medical debt can add to the stress of an already harrowing time. Estate planning can help ensure that your heirs don't have to worry about your medical bills after you're gone.\nEstate planning can protect your assets from creditors so they can't be used to pay your debts after you die. For example, a life insurance policy cannot be used to pay an estate's debts. Certain other assets, such as retirement accounts, brokerage accounts and living trusts, can also be protected from creditors with proper estate planning.\nLaws regarding estate planning are complex and vary from state to state. An experienced estate planning attorney can help structure your assets in a way that gives you and your family peace of mind. END
 TITLE: What Happens to Debt When You Die CONTENT: How Debt Is Handled After Death\n-------------------------------\nProbate is the legal process for distributing your property after you die. During probate, a special court will validate your will and authorize someone to distribute your estate to your beneficiaries as you requested. They will also ask them to pay any taxes your estate may owe.\nIn the event you do not have a will, a court proceeding will be held to determine how to divide your estate. The court will name an administrator for your estate who will be required to follow the judge's directions on how to distribute your property.\nSince probate laws differ from state to state, it's important to familiarize yourself with the legalities of probate where you live. This will help ensure that your final wishes are properly carried out. END
 TITLE: What Happens to Debt When You Die CONTENT: Who Is Responsible for Debts of a Deceased Relative?\n----------------------------------------------------\nAfter you die, your debts will be classified as secured and unsecured. Secured loans such as mortgages and auto loans are backed by collateral—assets that can be taken by the lender if they don't get repaid. Most credit cards, student loans and other unsecured loans lack collateral.\nDepending on the assets of your estate and the provisions you make before you die, your estate could entirely pay off your secured debts or make installment payments through a trust or other legal entity. Also, your property may be sold, refinanced or turned over to the lender to take care of the debt.\nAny unsecured debts that belong to you will likely need to be paid from your estate. If you die with $10,000 in your savings account and $5,000 in student loan debt, for example, the lender would usually be paid before the remaining $5,000 can be distributed to your heirs.\nIf there are multiple creditors with total claims greater than the amount held by your estate, the laws in your state will determine who gets paid and how much. Your unsecured debts will go unpaid if your estate lacks sufficient funds to cover them. END
 TITLE: What Happens to Debt When You Die CONTENT: Which Debt Can Be Inherited?\n----------------------------\nIf you leave a will behind, the person appointed to distribute your estate (the executor) will collaborate with your creditors and survivors to settle any outstanding debts you may have. A probate court will handle this if there is no will.\nTo determine what debts you owe, the executor or probate officer will likely access your credit report and take a look at your open credit accounts. Then, they'll figure out which debts are inherited and must be paid off. Inherited debts may include:\n*   **Joint debts**: The most common example of a joint debt is a mortgage. If you took out a mortgage with your spouse, they'll be on the hook for paying it off if you die. Car loans, credit cards, lines of credit and almost any type of debt can be joint debts.\n*   **Cosigned debt**: A cosigner agrees to pay your debt in the event you default on a loan. If you had someone cosign any of your loans, they'll be responsible for the debt if you die. For example, if you had a credit card that only you used but your parent cosigned years ago when you were young, they'll be required to cover it.\n*   **Home equity loan on an inherited house**: A home equity loan can allow you to borrow money against the value of your home minus the amount of your outstanding mortgage. The home equity loan on an inherited house becomes an inherited debt upon your death.\n*   **Debt in community property states**: There are nine community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. If you live in a community property state or Alaska, which gives both parties the option to make their property community, your spouse may be liable for certain types of debt even if the loans were solely issued to you.\n*   **Timeshares**: If you purchased a timeshare and put the names of your heirs' on the deed to make it more convenient for them to use the property upon your death, your children will inherit the timeshare and be forced to pay the annual maintenance fees that come with it. END
 TITLE: What Happens to Debt When You Die CONTENT: Which Assets Are Protected From Creditors?\n------------------------------------------\nThere are certain assets that creditors can't go after once you die, such as:\n*   **Retirement accounts**: These may include an employer-sponsored 401(k) or 403(b) plan, Solo 401(k), SEP IRA, Simple IRA, Roth IRA or a health savings account you may have to fund your retirement.\n*   **Life insurance**: Life insurance is a contract you sign with an insurer so your beneficiaries are paid a lump-sum payment or death benefit when you die, as long as you make premium payments.\n*   **Living trust**: With a living trust, you can pass on property while avoiding the expenses and delays that often come with probate. A living trust is considered a valuable estate planning tool.\n*   **Brokerage accounts**: Any taxable investment account you open with an investment company or brokerage firm is referred to as a brokerage account. You may invest in stocks, bonds, REITs, CDs or other investment vehicles within a brokerage account. END
 TITLE: What Happens to Debt When You Die CONTENT: How to Notify Creditors of Death\n--------------------------------\nOnce your debts have been established, your surviving family members or the executor of your estate will need to notify your creditors of your death. They can do this by sending a copy of your death certificate to each creditor.\nWhen your creditors are notified of your death, they'll likely stop trying to collect unpaid bills while your estate is getting figured out. Your creditors will inform the three major credit bureaus (Experian, TransUnion and Equifax) of your death so they can prevent others from using your name to apply for credit. You also can contact Experian directly to update a loved one's credit report to show them as deceased and to get a copy of their credit report for probate purposes. END
 TITLE: What Happens to Debt When You Die CONTENT: The Bottom Line\n---------------\nWhile it's unpleasant to think about what will happen to your debt when you die, it's something you should understand to protect your loved ones and prevent difficult situations for them in the future. Additionally, since debt often outlives the debtor, it's a good idea to keep your debt under control while you're living. END
 TITLE: How Much Should I Save for Retirement? CONTENT: Estimate How Much You Need to Save\n----------------------------------\nEveryone is different, and your retirement goals may not be the same as the goals of your friends or family members. And frankly, there's no getting around that retirement planning is built on a bunch of assumptions.\nWhile those goals can change over time, you want to make the most educated guesses possible, and use them to adjust your savings plan accordingly. Here are three steps to help you create your plan:\n### 1\\. Consider Your Lifestyle\nSome people plan to downsize their lifestyle in retirement. A survey of retiree spending by the Employee Benefit Research Institute found that in the first two years of retirement, median household spending dropped by 5.5% from pre-retirement spending levels, and by 12.5% after four years of retirement.\nSimply not having to save for retirement anymore—whether through your company's 401(k) or an individual retirement account (IRA)—can reduce how much money you'll need. Also, aiming to pay off your mortgage before you retire would also reduce your living costs.\nStill, not all retirees have a big drop-off in expenses. Health care costs tend to get higher the older you get, and you may want to replace some expenses, such as retirement savings or a mortgage payment, with travel and other activities.\nIt's also important to consider how long you'll need to live off of retirement savings. According to the Social Security Administration, A 65-year old woman today has a life expectancy of 21.5 more years. For a 65-year old male, life expectancy is 19 more years. What's more, roughly a third of all 65-year-olds will live past 90.\nSo as you determine how much money you'll need each month to live comfortably and do the things you want in retirement, you'll need to multiply that by how many years you expect to live past retirement age. And, in general, it's best to be as conservative as possible to avoid putting yourself in a position where you run out of cash.\n### 2\\. Decide When You Want to Retire\nJust as your life expectancy helps determine how much you need to save, so does your retirement age. The sooner you choose to leave the workforce, the longer you'll be living off of your savings, so you'll need to have an idea of how old you'll be when you make the transition.\nAnd if you're thinking about working longer than the traditional retirement age, you've got plenty of company. According to the Employee Benefit Research Institute, more than half of today's workers expect to still be working past age 65. Yet less than 15% of today's retirees worked past 65.\nKeep in mind, though, that it's difficult to predict the future, and retiring before 65 may be inevitable. Illness, layoffs or needing to care for a family member can push people to retire earlier than expected.\n### 3\\. Calculate How Much to Save\nInvesting experts generally recommend saving 15% of your gross income or more toward retirement, but understanding your retirement goals can give you a better idea of the right savings rate for you.\nAs you think about your lifestyle, health care expenses, debt obligations and other costs, come up with an amount you expect you'll need in today's dollars to cover those expenses without putting you in a difficult financial position.\nThen use a retirement calculator such as those from investment firms Vanguard, Charles Schwab or Edward Jones to input your assumptions about income needs and debt to determine how much you need to save now to reach your goal.\nAlso, keep in mind that you can take full Social Security benefits at age 67. If you're not sure how much of a benefit you'll receive, you can register for a my Social Security account to get an estimate based on your earnings.\nThat said, avoid the temptation to rely fully on that estimate. The U.S. Congress has made changes to the normal retirement age for Social Security before, and the Social Security Board of Trustees projects that the program will only be able to pay 75% of its scheduled benefits by the year 2035.\nSo while it can be a nice supplement, don't take the estimate at face value—focus on your savings, and consider any Social Security benefits you might receive as a bonus. END
 TITLE: How Much Should I Save for Retirement? CONTENT: Types of Debt to Consider When Planning for Retirement\n------------------------------------------------------\nAs you work through the numbers of what you'll need to save to retire when and how you want, it's a good idea to work on paying down debt. Not only will it give you more freedom with your cash flow, but it can also reduce the amount of income you'll need each month.\nSpecifically, there are three types of debt to consider paying down as you work to plan your retirement.\n### Mortgage Loan\nBaby boomers—those between ages 55 and 73—have the second-highest debt burden of any generation, according to Experian data, and mortgage debt makes up a big chunk of it.\nBy owning your home free and clear before you enter retirement, you can save yourself hundreds, if not thousands, of dollars every month—that's money you can use to fund travel and other activities, or just not have to save for.\n### Student Loans\nThe student loan debt crisis is getting worse, and recent college graduates aren't the only ones suffering. According to Experian data, baby boomers saw a 7% increase in their student loan balances in the past year, at least some of which is attributable to parents taking out loans to fund their children's education.\nStudent loan debt can be tricky because it's more difficult to get rid of than other types of debt. It's virtually impossible to get it discharged in a bankruptcy, and defaulting can cause significant financial problems and result in garnishment of your Social Security benefits.\n### Credit Card Debt\nThe biggest threat credit card debt poses to your retirement is its high cost. According to the Federal Reserve, the average credit card interest rate is 17.14%, and with no set repayment period, it's easy to rack up a balance and carry it from month to month for years.\nBy eliminating credit card debt, you can avoid unnecessary interest charges that can linger far too long. END
 TITLE: How Much Should I Save for Retirement? CONTENT: Contribute to a Retirement Plan Early\n-------------------------------------\nThe sooner you start saving for retirement, the better because it gives your investments more time to grow. Again, how much you need to be saving depends on your retirement goals. But as a rule of thumb, Fidelity Investments suggests having the following saved at different age milestones along the way:\n*   **Age 30**: 1X your salary\n*   **Age 35**: 2X your salary\n*   **Age 40**: 3X your salary\n*   **Age 45**: 4X your salary\n*   **Age 50**: 6X your salary\n*   **Age 55**: 7X your salary\n*   **Age 60**: 8X your salary\n*   **Age 67**: 10X your salary\nAs you consider how much to save, take some time to consider the different retirement options. For example, a 401(k) plan is an employer-sponsored retirement plan that allows you to save through automatic deductions from your paycheck.\nIn some cases, your employer may even match some or all of your monthly contributions to your account, directly increasing your savings rate. Those contributions won't be included in your gross income when you file your tax return.\nAnother option is an IRA, which is a self-directed investment account. With a traditional IRA, you may be able to deduct the contributions you make from your taxable income, but you'll pay taxes later when you take withdrawals from the account.\nWith a Roth IRA, on the other hand, you'll be taxed on the contributions you make right now, but you'll be able to take tax-free withdrawals in retirement.\nAs you establish your retirement savings strategy, research the different savings options and choose the best ones for your situation. END
 TITLE: How Much Should I Save for Retirement? CONTENT: Do You Need a Good Credit Score to Retire?\n------------------------------------------\nNo one's going to check your credit score when you decide to finally hang up your hat. But your credit score can have a significant impact on your ability to retire when and how you want.\nRight now, for instance, having a good credit score makes it possible to qualify for low interest rates when you borrow money—whether it's for a home, a car or something else. Lower-cost loans give you more room to save for retirement. Your credit score can also affect your monthly premiums for auto and homeowners insurance.\nThese same situations can also come up during retirement. If you decide to move, renovate your house, buy a car, get a loan for health care expenses or apply for insurance, a good credit score will provide more savings, which are essential when you're on a fixed income. END
 TITLE: How Much Should I Save for Retirement? CONTENT: Start Your Planning Sooner Than Later\n-------------------------------------\nIt can be easy to put off planning for retirement, especially when it's still decades away. But the sooner you get a plan in place and start executing that plan, the better off you'll be in the long run.\nAs you work on creating your retirement plan, also be sure to check your credit score to see if there's room for improvement. If there is, take some time to work on improving your credit. It can take a while to get to where you want to be, but the resulting savings can make it easier to save for retirement and reduce your expenses once you get there. END
 TITLE: Is Employment Listed in Your Credit Report? CONTENT: You may assume that your bosses have been independently sending information about you to the credit reporting agencies, but that's not the case. In fact, an employer is on your report because you provided that information on an application for credit.\nThe paperwork for loans, credit cards and finance companies typically have a field for you to submit information about your job. The amount you earn, where you work and how long you've been with the company are relevant for the qualification process. To properly analyze risk and whether you can afford to pay back the loan or line of credit, the lender will need an accurate picture of your financial situation and source of income.\nOnce the lender has received your completed application, it will notify the credit reporting agencies with certain details about you, which can include the employer you listed. There is no requirement that the lender supply that information to the credit reporting agencies, but many do. When the information is shared, the credit reporting agency (Experian, TransUnion or Equifax) will attach the name of the company to the identification section of your credit report. It will appear alongside identifiers such as your name, Social Security number and date of birth.\nIf you applied for credit products while working at previous jobs, those may also be listed. Consequently, your credit report can contain a complete or partial history of your employers.\nWhat won't be included about your employment: the length of time you worked at each company, the positions you've held and your income. All that data is between you and the lender, so will not be shared with the credit reporting agencies. END
 TITLE: Is Employment Listed in Your Credit Report? CONTENT: Employment Information Doesn't Affect Your Credit Scores\n--------------------------------------------------------\nThe employment history that appears on your credit report is never factored into your credit scores. Credit scores, such as those developed by FICO® and VantageScore, help lenders and other businesses quickly understand how you've been handling your financial obligations. Your employer has nothing to do with the way you've managed credit and debt, so it's not a factor in your scores.\nSo why would any of your employment history be on your report in the first place? Because it can help a business confirm your identity. To offset the possibility of fraud, a lender may ask you to provide an SSN, mailing address or other reported personal data. A current or previous employer is another bit of information a lender can use to verify that the person applying for a loan or credit product is really who they say they are. END
 TITLE: Is Employment Listed in Your Credit Report? CONTENT: Your Employment Information Is Updated When You Apply for Credit\n----------------------------------------------------------------\nDon't worry about doing the legwork to ensure your most recent employer is listed on your report. If your new company isn't listed, it won't have an effect on your creditworthiness. The next time you apply for a loan or credit card and provide your job information, the lender will probably send the name of your employer to the credit reporting agency they use to pull your report. If it does, your current employer will automatically update on your report.\nAdditionally, it's not necessary to update the credit reporting agencies when you get a new job. A credit report is not a resume, so it doesn't need to list all the places you've worked.\nWhat you will want to do is make sure the employment information that does appear is accurate. Errors can cause confusion and delay a credit application from being approved. If you spot an unfamiliar company, dispute it with the credit reporting agency that lists it and it will make the appropriate change. END
 TITLE: Is Employment Listed in Your Credit Report? CONTENT: It's Important to Monitor Your Credit\n-------------------------------------\nIf you're curious about the employer listed on your credit report, chances are you're already keeping a close eye on your report. If you're in the process of applying for new credit, be sure to obtain a copy of your [free credit report from Experian](;bcd=ad_c_sem_427_393220579826&k_id=_k_EAIaIQobChMIleWJ0oSJ5wIVFtJkCh1QTQJbEAAYASAAEgLA9vD_BwE_k_&k_kw=kwd-4754763663&k_mt=e&pc=sem_exp_google&cc=sem_exp_google_ad_7708912303_80116599263_393220579826_kwd-4754763663_e_1t1__k_EAIaIQobChMIleWJ0oSJ5wIVFtJkCh1QTQJbEAAYASAAEgLA9vD_BwE_k_&ref=boostfreebrand&awsearchcpc=1&gclid=EAIaIQobChMIleWJ0oSJ5wIVFtJkCh1QTQJbEAAYASAAEgLA9vD_BwE) at least a month or two before you submit your application.\nIn addition to reviewing the factors in your report that do affect your credit scores, take a moment to scan the identification section as well. If anything is wrong and needs to be disputed, take action to have it fixed. END
 TITLE: Do Employers Check Credit Scores? CONTENT: Can Employers See Your Credit Score?\n------------------------------------\nPotential employers will never be able to see your three-digit credit score when you apply for a job. They will, however, be able to look at a version of your credit report that's different from the one that lenders see. This modified report will exclude information such as your date of birth, account numbers, details about your spouse or anything that could potentially violate equal employment laws.\nSince your credit score is meant to indicate your creditworthiness to a lender, it's not something a potential employer would use to make a hiring decision and is therefore not included in the report they see. END
 TITLE: Do Employers Check Credit Scores? CONTENT: What Employers Can See on Your Credit Report\n--------------------------------------------\nThe modified credit report a potential employer can access will disclose personal information such as your name, address and Social Security number. It contains details about the debt you've incurred, including your mortgage, credit card debt and student loans as well as your payment history of those debts.\nSo, why might a potential employer want to access your credit report? An employer may do this for several reasons. If a job requires managing money, a credit report may indicate lack of financial responsibility or it may show financial distress that increases risk of fraud or theft.\nBy eliminating potential employees who have certain credit red flags, an employer can reduce its risk in hiring. If a credit report shows several late payments or something more severe, an employer may interpret that to mean an applicant may have poor organizational skills and follow through.\nAn employer must get consent from an applicant before running their credit. If an applicant is rejected based on information found in a credit report, the Fair Credit Reporting Act requires that the applicant be told and given an opportunity to dispute the information.\nIf you have a healthy credit history with minimal debt and no late payments, that may tell a potential employer that you have the responsibility and maturity it takes to thrive in the position they are looking to fill. A credit report that indicates responsible money management and organizational skills works in your favor, so it's important to know what's on your credit report and what you can do to improve it.\nEssentially, a credit report helps a potential employer evaluate how trustworthy and responsible you are. It's particularly useful if you're applying for a job that will require you to work with sensitive customer data or manage financial information. END
 TITLE: Do Employers Check Credit Scores? CONTENT: Does an Employment Credit Check Affect Your Score?\n--------------------------------------------------\nWhen you apply for a loan or credit card and the lender pulls your credit report, a hard inquiry occurs. Too many hard inquiries in a short period of time may temporarily lower your credit score. Fortunately, this is not the case with employer credit checks.\nAn employment credit check is known as a soft inquiry because it does not involve applying for new credit. Therefore, an employment credit check is not viewed as a potential flag for lenders and won't affect your credit score in any way. END
 TITLE: Do Employers Check Credit Scores? CONTENT: Know What's in Your Credit File\n-------------------------------\nAlthough it can be nerve-racking to know that a potential employer can view a version of your credit report, don't let this discourage you from applying for a job that piques your interest.\nYou can always check your Experian credit report for free to get an idea of what a potential employer may see and dispute any inaccurate negative marks beforehand. This may allow you to avoid unwanted surprises during your job search and give you the peace of mind of knowing you did all you could to improve your report. END
 TITLE: When Is the Best Time to Start Saving for Retirement? CONTENT: When Should I Start Saving and Investing for Retirement?\n--------------------------------------------------------\nYour retirement party draws closer every day, so there's no reason to delay saving and investing for post-work life. Today, not tomorrow, is the best time to start putting away money for retirement. That's the case whether you're in your 20s or your 50s.\nIt's simple: If you start saving for retirement earlier in life using an IRA (individual retirement account) or 401(k), your money has more time to grow. Let's look at what could happen if you contribute to a tax-deferred retirement account beginning at age 25 versus age 35: END
 TITLE: When Is the Best Time to Start Saving for Retirement? CONTENT: Calculate How Much You'll Need to Save for Retirement\n-----------------------------------------------------\nNow, in order to put yourself on the right financial path for retirement, it helps to figure out how much money you'll need when you reach that point. To calculate that amount, you should consider what you want your retirement lifestyle to look like and when you want to retire. Then, you can do a little math to determine how much you'll need to save for retirement.\nTypically, investment experts suggest saving at least 15% of your gross income for retirement. But deciding on your desired retirement lifestyle and timeline will dictate whether that percentage is right for you.\nTake into account living expenses, health care expenses, debt obligations and other costs to arrive at an amount you anticipate needing in today's dollars to handle those expenses without straining your finances. Once you've got that picture in mind, use a retirement calculator like those from investment firms such as Vanguard, Fidelity, Charles Schwab and T. Rowe Price to plug in projections regarding income, expenses and investments to come up with an estimate. END
 TITLE: When Is the Best Time to Start Saving for Retirement? CONTENT: Where Should I Put My Retirement Savings?\n-----------------------------------------\nTax-favored retirement accounts like 401(k)s and IRAs are good places to start when you're seeking places to put your retirement savings. Employers sponsor 401(k) plans and may even match your contributions up to a certain percentage of your income. IRAs are retirement accounts you open on your own.\nRetirement accounts rely on investments to grow your contributions over time. They may use various strategies to do so based on the retirement fund manager's judgment and your own comfort level when it comes to risk. Investing involves buying an asset or several that you believe will grow in value over time, which usually means purchasing securities like stocks, bonds and mutual funds. Other kinds of investments include real estate and gold.\nIf you're uncertain about how to approach investing, you might seek advice from a financial advisor. But if you're more comfortable with investing, you might open an online brokerage account on your own or rely on a robo-advisor investing app, such as Betterment.\nBefore making any investment decisions, though, you should look at your financial situation. Do you have enough money to cover everyday expenses? Do you have an emergency fund? How much debt do you have? After you answer those questions, decide how much of your money you can spare to allocate toward your retirement fund.\nYou also should scrutinize the current condition of the investment markets and weigh your tolerance for financial risk. Among the risks: The value of your investment portfolio can fluctuate over time, based in part on how stocks, bonds and mutual funds are performing. Many retirement strategies will allow you to adjust your risk level. Making low-risk investments may provide some peace of mind that you're less likely to lose money—but you may miss out on the bigger payoff more risky investments can provide. END
 TITLE: When Is the Best Time to Start Saving for Retirement? CONTENT: Tips for Spending Less Money and Saving for Retirement\n------------------------------------------------------\nIf you've realized it's time to save money for retirement, you might examine your spending habits to accumulate more cash for your golden years. Here are three ways you can spend less and save more:\n1.  Decrease your credit card debt. One simple strategy: Pay your credit card bills in full every month so you can steer clear of interest charges. High credit card debts can result in big interest charges that leave you less wiggle room for retirement contributions. If that's not possible, work to pay down your credit card debt as quickly as possible. A credit card payoff calculator can help you understand how long it may take you to pay off your debt and how you might be able to shorten that period.\n2.  Consolidate your credit card debt. Shifting some of your higher-interest credit card debt to a lower-interest debt consolidation loan might leave you with additional cash to put aside for retirement.\n3.  Think twice about big purchases. Do you really need a new car? Can you do without a new dining room table? Look at whether you can get by with what you've got now or explore lower-cost alternatives, such as a used car or a used dining room table. The money you save could go into your retirement account. END
 TITLE: What to Know About Unemployment and Your Credit Report CONTENT: What Personal Information Does Your Credit Report Include?\n----------------------------------------------------------\nTo alleviate some of the stress you might be feeling about your employment status and its effect on your credit, it helps to understand what your credit report contains. Here's what you can expect to see:\n*   **Identifying data**: Your credit report includes your name, as well as any other names you've used; current and former addresses; Social Security number; phone numbers; and employers, if you noted them on applications for credit cards or loans in the past.  \n    Creditors don't use employment history on your credit report when determining whether to work with you. They might cross-check that information against data you've included on your application for a loan or credit card to verify your identity.\n*   **Account history**: All the credit cards and loans you've had will be listed on your credit report, along with their balances, when you got them, your payment history and the account's standing, such as whether it's current, closed or past due.\n*   **Public records**: Bankruptcy is the only public record that appears on your credit report. A Chapter 13 bankruptcy will be listed for seven years, while a Chapter 7 bankruptcy will appear for 10 years.\nYour income level, marital status and bank balances are not included on your credit report. END
 TITLE: What to Know About Unemployment and Your Credit Report CONTENT: How Unemployment Can Indirectly Affect Your Credit\n--------------------------------------------------\nWhile being unemployed won't appear on your credit report or directly impact your credit score, loss of income could lead to circumstances that will. For example:\n*   If you use credit cards to pay for more expenses while unemployed, your credit utilization will increase. Your credit utilization ratio is the amount of your total available credit you're using, and it's one of the most significant factors in your credit score. High credit utilization can drive down your credit score since nearly maxed-out credit cards often indicate risky borrowers.\n*   Limited income could also lead to missed payments on loans or credit cards if you don't have enough savings to make up the shortfall. Since payment history is the biggest contributor to your credit score, missing even one credit card bill could lead to a drop in your score.  \n    Utility bill payments typically aren't reported to the credit bureaus, so paying one cellphone or electric bill late likely won't have the same effect. (One exception is if you use Experian Boost™† to help improve your FICO® Score☉ , though late payments are not considered when you use Boost.) If you miss several bills, though, and the account is sent to collections, that could damage your score.\n*   Applications for new credit can also impact your score. If you apply for additional credit cards, for instance, each application will result in a hard inquiry on your credit report. It will stay on your credit history for two years and generally causes a temporary score drop. Lenders may determine that your search for new credit reflects poor management of your current accounts.\nWhile you're taking whatever measures necessary to get you through a period of unemployment, your credit could see a dip. But keep in mind that credit scores are constantly changing, and a couple hiccups now won't affect your credit forever. Once you are back on your feet, you can take steps to improve your credit and get you closer to your financial goals. END
 TITLE: What to Know About Unemployment and Your Credit Report CONTENT: Can You Be Approved for Credit if You Have No Job?\n--------------------------------------------------\nLack of employment won't disqualify you from taking on new credit, such as a new loan or credit card.\nA lender or credit card issuer is less concerned with your employment status than it is with seeing that you have a steady income, such as from unemployment benefits or savings. Lenders will also look at your credit score to confirm you have a history of repaying debts on time. If you've missed payments on your accounts or have taken on new credit since you've been unemployed, your credit score could have been affected, which may impact whether you'll be approved.\nBut before you apply for any new credit, consider whether you're ready to pay an additional monthly bill. Without a job, it will likely be more difficult to cover the expenses you're already responsible for, let alone new ones.\nIf you're feeling the pinch, instead of turning to a new line of credit, aim to make a budget and potentially cut back on spending. In cases when you truly need a loan to avoid falling behind on major expenses, consider a personal loan from a credit union, as credit unions often charge lower fees and interest rates and have more lenient credit requirements than traditional banks or online lenders. END
 TITLE: What to Know About Unemployment and Your Credit Report CONTENT: Stay Up to Speed on Your Credit\n-------------------------------\nIt's crucial to stay aware of your financial health, whether you're employed or not.\nCheck your credit report during periods of unemployment to make sure you're not falling behind on bills, and to spot potential fraud. That way, you'll be in the best position possible to access new credit when you're ready to, and your time between jobs won't have significantly affected your ability to achieve the financial goals you dream about. END
 TITLE: Does Being Unemployed Hurt Your Credit Scores? CONTENT: Is Unemployment Listed on My Credit Report?\n-------------------------------------------\nWhile you may see your current or past employer listed in your credit reports, your files do not record any periods of unemployment. The only reason an employer would show in your reports is if you listed who you worked for on a previous application for credit. When creditors submit records of loan applications to credit bureaus, that employment information is recorded and saved in your file, but is not used to calculate your scores.\nCredit scores are based on the data compiled in your credit reports by the three main credit bureaus (Experian, TransUnion and Equifax). Your creditors, and anyone you've applied for credit with, report this data to the bureaus, and scoring systems such as FICO use it to generate a three-digit credit score.\nYour credit reports show how you've managed borrowing and repaying money in the past. Information in your report includes:\n*   Records of loans and credit card accounts you've opened. This includes the dates they were opened (and closed, if applicable) and the creditor the account is with. Credit reports also contain information about credit applications (inquiries), whether you were approved or not.\n*   A record of your payment history on your accounts, including late and missed payments. This information shows how reliably you pay back your debts, and is the most important factor in your credit scores.\n*   Records of certain legal events related to your debt, including foreclosures, bankruptcies and repossessions.\n*   Any records of debts you've failed to repay and have been sent to collections agencies or \"charged off\" by a lender.\nCredit reports do not contain any information about your employment status, income, bank account balances or other assets. Additionally, your credit reports won't contain any record of applications for unemployment benefits. That information is not a part of the public record, and can only be shared by unemployment agencies in a few situations. END
 TITLE: Does Being Unemployed Hurt Your Credit Scores? CONTENT: Can Unemployment Make It Difficult to Get Credit?\n-------------------------------------------------\nEven though unemployment isn't a factor in your credit, it can alter your finances in ways that could make it difficult to get new credit. Along with checking your credit, prospective lenders will often ask how much you make and where you work when considering you for a loan. Lenders like to see that a borrower has a reliable income stream that will enable them to repay the loan in full, so one may view your application differently if you're unemployed when applying for a credit card or new loan.\nIf you expect to apply for new credit while unemployed, plan ahead to make sure you'll be able to cover the monthly payment based on any income you may have. If you'll use unemployment benefits to make your loan payments, have a plan for how to cover payments once you're no longer receiving those benefits. END
 TITLE: Does Being Unemployed Hurt Your Credit Scores? CONTENT: Is Filing for Unemployment Bad for Your Credit?\n-----------------------------------------------\nUnemployment agencies are only allowed to share your history in a few rare scenarios, and there are no public records of who collects unemployment. Because unemployment is not included in your credit reports, it has no impact on your credit scores, and lenders cannot see whether you're on unemployment when they pull your credit.\nReceiving unemployment benefits may actually help you maintain your credit while out of work due to the fact that it provides a reliable monthly income. Having at least some form of income during that time will allow you to purchase the essentials and might be enough to also cover the minimum payments on any debt you have.\nTrying your best to pay at least the minimum payments on your debts will go a long way in making sure your credit doesn't suffer a big drop while unemployed. Any late or missed payments could have a negative impact on your score. END
 TITLE: Does Being Unemployed Hurt Your Credit Scores? CONTENT: Indirect Impacts of Unemployment\n--------------------------------\nThough being unemployed or collecting unemployment benefits will not directly impact your credit scores, not having a job could bring your credit down in other ways. When you lose your income, it could become difficult to pay all your bills on time and in full, which could result in missed or late payments.\nAdditionally, a loss of income could drive you to rely on credit cards more than usual, which can spike your credit utilization ratio. Your credit utilization ratio compares the total of your revolving account balances (credit cards and lines of credit) with the total of all your credit limits. As your ratio climbs, so, too, does its impact on your credit scores. To determine your utilization ratio, divide your total account balances by your total credit limits. Always try to keep your utilization under 30% to avoid hurting your credit scores.\nThese two factors—credit utilization and payment history—are the most important aspects of your credit scores, so any changes in these areas could be reflected in your scores. The good news? Negative impacts can be temporary, and your credit can recover once your utilization ratio drops again and late or missed payments age and eventually drop off your report entirely. END
 TITLE: Does Being Unemployed Hurt Your Credit Scores? CONTENT: How to Protect Your Credit When Unemployed\n------------------------------------------\nWhile being unemployed can be stressful, it's usually temporary. During a period of unemployment, essential needs like food, shelter and transportation are the most critical concerns. But it's also important to think about your credit, since it could affect your ability to get loans and other forms of credit in the longer term.\nTo manage your credit while unemployed:\n*   **Monitor your credit.** Checking your credit regularly can give you peace of mind and help you understand what is going on with your credit. Unless something drastic changes in your credit card spending or repayment, your credit score shouldn't fluctuate too much in a short period of time.\n*   **Continue making on-time payments.** If possible, make at least your minimum payments on time to protect yourself from long-term damage to your credit scores. Paying the minimum keeps your account current, allowing you to keep your credit intact even if you can't pay down your debt as aggressively as you may like.\nOne way to keep up on your credit is through Experian's free credit monitoring service, which allows you to check your credit reports and scores so you'll be able to track your progress while you are unemployed and after you get back to work. Doing so can prepare you should you have a need for new credit in the future. END
 TITLE: What Is the Difference Between a 401(k) and an IRA? CONTENT: Many companies offer 401(k) plans as a benefit to help workers prepare for their retirement years. If yours does, you can use a 401(k) to save a portion of your pretax income in an account set up by your employer. The amount you contribute is automatically deducted from your paycheck before it reaches you, just like your taxes and Social Security contribution. When you enroll in the plan, you'll be presented a choice of where you would like to invest your savings, in the form of mutual funds or exchange-traded funds.\nTo encourage participation in 401(k) plans, some employers will match contributions up to a certain amount, often a percentage of your annual income. For instance, if your company offers a 3% match, it will contribute payments equal to your contributions up to 3% of your salary. Therefore if your salary is $40,000, your employer will match your contribution dollar-for-dollar up to $1,200 a year. After that, you can continue to save, but your employer will stop donating the extra funds. An employer may also choose to match only a portion of your contribution—50 cents per dollar you contribute, for instance.\nAnother thing to know about 401(k) plans is that they tend to reward company loyalty through a process known as \"vesting.\" To completely own all contributions to your 401(k), including your employer match, you must become \"fully vested\" or risk losing a portion of it if you leave your job. Vesting rules vary by plan; some plans vest an employee immediately, some do so gradually, and others vest all at once after several years. END
 TITLE: What Is the Difference Between a 401(k) and an IRA? CONTENT: What Is an IRA?\n---------------\nAn IRA is another way to save and invest for your retirement, but it's something you can do on your own instead through an employer. You would open an IRA for yourself at a bank, credit union, investment firm, broker or through a mutual fund provider. The different types of IRAs are as follows.\n*   **Traditional**: You can save pretax earnings and, as long as you qualify, those contributions will reduce your taxable income. So if your salary is $40,000 and you save $5,000, your taxable income will be $35,000. Your contributions are instead taxable only when you begin to withdraw the funds.\n*   **Roth**: With this IRA, you contribute after-tax earnings. Your contributions and the money they make are not treated as income when they're withdrawn, so will not be subject to income tax.\n*   **Spousal**: You can open a separate traditional or Roth IRA so a working spouse can make contributions in the name of a non-working spouse. This way, both partners will have their own retirement account to tap into when the need arises.\n*   **Rollover**: When you switch employers, you can transfer the money in a 401(k) plan to a rollover (traditional) IRA. While you may be able to remain with your employer's plan, the rollover IRA can reduce fees and provide you with greater control over your investments.\nSmaller companies that don't offer 401(k) plans have special IRAs available to them:\n*   **Simplified employee pension (SEP)**: This plan allows business owners to contribute to both their employees' and their own retirement savings. It follows the same rules as traditional IRAs, but only the employers can contribute, not their employees.\n*   **Savings Incentive Match Plan for Employees Individual Retirement Account (SIMPLE)**: This IRA has similar benefits to a 401(k), and employees can add money to their account with elective contributions from their paycheck. END
 TITLE: What Is the Difference Between a 401(k) and an IRA? CONTENT: Key Differences Between 401(k)s and IRAs\n----------------------------------------\nKnowing the broad ways each plan differs can help you decide if one is a better option for you. The devil is often in the details, however, and it's important to understand how each plan may differ in its practicality based on your employer, savings goals, when you plan to retire and other things. END
 TITLE: What Is the Difference Between a 401(k) and an IRA? CONTENT: How to Choose Between a 401(k) and IRA\n--------------------------------------\nClearly both 401(k) plans and IRAs have their own advantages and disadvantages, but either can be crucial to helping you start saving for your retirement early. The sooner you do, the more money you'll accumulate for the years when you're no longer working. Some rules of thumb when deciding where to put your money:\nIf a 401(k) plan is available to you, maxing out your allowable contribution can be wise (as long as doing so won't impact your ability to make your bill payments). A 401(k) plan allows for higher contributions than IRAs, and any matched funds your employer contributes are essentially free money.\nHave extra money to contribute after you've maxed out your 401(k)? As long as you meet the eligibility requirements, you can also contribute to an IRA.\nIn the event that a 401(k) plan is not an option, choose the right IRA for you. In general, a traditional IRA is preferable if you expect that your tax rate will decrease when you retire, and a Roth will be better if you think your taxes will be higher in retirement. There is no income limit for a traditional IRA, but there is an income limit for a Roth IRA.\nIf you haven't yet entered the world of 401(k) plans and IRAs, they may be intimidating. In the beginning, remember the basics: Take advantage of your employer's plan if one is available, save as much as makes sense for your budget and future needs, and select your investments wisely. The tax benefits of using these vehicles will get you to where you want to go without overpaying Uncle Sam. END
 TITLE: Why Credit Scores Matter in Retirement CONTENT: Does Retirement Show on Your Credit Report?\n-------------------------------------------\nCredit reports used to calculate your scores do not contain any information about employment status or income level. (Likewise credit reports contain no information about your age, marital status, ethnicity, religion or race.)\nWhat your credit reports _do_ track is your personal history of borrowing and repaying money, including loans and credit card accounts. Credit reports reflect your history of making payments on loans and accounts that have been active in the past 10 years, even if the loans are now paid off in full or the accounts have been closed. They also record major negative financial events including foreclosures, repossessions and bankruptcies. These entries in your credit report are the raw material credit scoring systems analyze to generate your credit scores. END
 TITLE: Why Credit Scores Matter in Retirement CONTENT: Retirement _Can_ Affect Your Borrowing Power\n--------------------------------------------\nWhile your credit scores won't change just because you retire, your ability to borrow money could decline somewhat because your income is likely to drop at least incrementally as you shift from collecting paychecks to drawing Social Security and tapping retirement savings.\nLenders often want to see evidence of steady income when considering loan applications, and the concern over having a smaller income is its role in increasing your debt-to-income (DTI) ratio. DTI ratio, which you can calculate by dividing your monthly bill payments by your monthly income, is a measure lenders often consider (along with credit score, employment history and other assets you may have) when deciding whether to lend you money.\nPeople often dial back credit usage as retirement approaches—mortgages may be paid off, cars accumulate fewer miles and get replaced less frequently, and household spending winds down as the nest empties—so odds are good the debt portion of your DTI ratio has shrunken. But unless you have zero debt, any drop in income will mean an increase in DTI ratio. Lenders typically look for DTI ratios below 43% when considering loan applications, so as long as you're below that level, you probably don't have much to worry about. END
 TITLE: Why Credit Scores Matter in Retirement CONTENT: Why Credit Scores Still Matter When You're Retired\n--------------------------------------------------\nCutting back on borrowing as retirement nears is far from a universal situation (lots of retirees take out new mortgages on condos or vacation homes), and some retirees whose days of big-ticket financing are behind them make the mistake of concluding they can forget about their credit scores. But your credit scores can affect your finances even if you're done applying for loans and credit cards. Here are a few ways low credit scores can cost retirees money:\n*   **Higher interest rates on existing debts.** Many credit card issuers routinely monitor your credit scores for purposes known in the industry as \"account management.\" This practice gives card issuers a heads-up of changes in your creditworthiness, and many issuers reserve the right to change the terms of your cardholder agreement if your credit score declines significantly. They may lower your borrowing limit, increase the interest rate they charge or even close your account.\n*   **Lower rates on insurance.** Auto and homeowners insurance companies often use information in your credit report to generate a type of specialized insurance score, which helps them decide what rates to charge you. Reductions in your credit score could mean higher insurance premiums.\n*   **Security deposits.** If you want to rent construction gear or other equipment for a DIY project, or if you just want to get a Wi-Fi router or DVR from the cable company serving your new retirement community, you'll likely be subjected to a credit check. A fair to good credit score might not prevent you from getting the rental, but it might mean you'll need to put down a higher security deposit than you would if your score were higher. END
 TITLE: Why Credit Scores Matter in Retirement CONTENT: How to Keep Your Credit Score High During Retirement\n----------------------------------------------------\nSo how do you maintain a high credit score (or build up a score that could stand to be higher) once you've entered retirement? The same way you keep up your score at any other phase of life: Understand the factors that promote strong credit scores and avoid decisions that can bring your score down.\nThe most important steps you can take to avoid hurting your credit score are:\n*   **Pay your bills on time.** Do this every month without fail. If your retirement will include a lot of travel, or if you'll be dividing time between two homes during the year, this may take some extra care. Schedule automatic payments for as many services as you can, and consider working with creditors, utilities and other vendors to keep all your payment due dates around the same time of the month to make it easier to organize your payments.\n*   **Avoid excessive credit balances.** Pay your credit card balances in full as often as possible (this also saves you from paying interest charges). When you must carry a balance from month to month, do your best to keep it below 30% of your borrowing limit. Experts agree that utilization rates in excess of 30% tend to lower your credit scores.\n*   **Resist the urge to close older credit card accounts.** Even if you're not using the cards regularly, unless you're paying fees for them, hang on to cards you've had a long time, particularly if you maintained a record of on-time payments for them. Why? Longstanding accounts help boost a credit scoring factor known as age of accounts.\n*   **Stay active.** It won't mean any major credit score increase, but active credit card accounts—those you use regularly—tend to elevate credit scores slightly more than disused cards. So consider using an idle card to make a small payment each month—for your video streaming service, perhaps. If you set up an automatic payment through your checking account to pay the credit card bill, this will keep the card account active without adding to your monthly activity.\n*   **Be vigilant.** Identity thieves can wreak havoc on your credit by hijacking your credit cards or opening new cards in your name, and senior citizens and children are among the most frequent targets. Review all your bank and credit statements carefully each month, check your credit reports at least annually, and report any unauthorized activity immediately. Consider using a credit monitoring or identity protection service such as those offered by Experian.\nRetirement is the time to relax, savor your free time, and enjoy the fruits of your life's labors and savings. Making just a little effort to keep up your credit scores can help ensure you have the flexibility to get the goods and services you want when you want them, make big or small purchases whenever the time is right, and pay for it all in whatever way is most convenient. You've earned that privilege. END
 TITLE: Does Being Self-Employed Affect Your Credit? CONTENT: Does Self-Employment Show Up on Your Credit Report?\n---------------------------------------------------\nYour credit report includes information about your credit accounts, bankruptcies and recent inquiries into your credit report. It also includes some personal information, such as your name, Social Security number, current and past addresses, and current and past employers.\nYour employment history (as well as any self-employment history) may show up on your credit report based on information you provided when applying for credit in the past. When you apply for a loan, credit card or other form of credit, you'll typically be asked to provide information about your job, including the name of your employer, your income and how long you've worked there. This information helps a lender decide if you're financially stable enough to be creditworthy.\nYour lenders may pass the employment information you listed on your application along to credit bureaus, but aren't required to do so. As a result, if you've ever filled out a credit application and listed yourself as self-employed, that information may be reflected on your credit report. Whether you're employed or self-employed, your employment history is not factored into your credit score. END
 TITLE: Does Being Self-Employed Affect Your Credit? CONTENT: Does Self-Employment Make It More Difficult to Get Credit?\n----------------------------------------------------------\nYour credit history is just one of the \"five Cs\" that lenders look at when determining your eligibility for credit. The other four are _capital_ (any assets you can use to repay a loan), _capacity_ (your monthly income), _collateral_ (any assets you can use to secure the loan) and _conditions_ (such as the amount and terms of the loan or the current state of the economy).\nYour income itself is not a factor in your credit score. However, lenders do consider your debt-to-income ratio, which compares the total amount you owe every month to your total income. An acceptable debt-to-income ratio depends on the lender's criteria, the type of loan you're seeking and a variety of other factors. In general, if your ratio is 50% or above, lenders may feel you already have too much debt and deny your credit application.\nSome lenders may view self-employed borrowers as riskier than those who work for someone else. There are several reasons for this. If you're relatively new to self-employment, you may not have a long track record of successfully generating income. Even if you've been self-employed for quite a while, you might make a lot of sales one month and fewer the next, or your customers may take a long time to pay their invoices. As a result of these natural ups and downs, your income is likely to be less stable than that of an employee receiving a regular paycheck.\nDepending on the nature of your business, you may also have taken on a lot of debt to get it up and running. If you've invested a lot of your own money in your business, you might be left with few liquid assets you can tap to pay off your loans in a crunch. Both can work against you when applying for more debt—but there are steps you can take to improve your situation. END
 TITLE: Does Being Self-Employed Affect Your Credit? CONTENT: How to Get a Loan When Self-Employed\n------------------------------------\nIf you're self-employed and having trouble getting a loan, you have a few options that may help.\nCheck your credit report and scores so you know where you stand and can assess what types of loans you may qualify for. You can research loans and credit card offers online to find the ones suited to your credit score. Don't try for loans or credit card offers that require a credit score above yours.\nAre you looking for a loan? Try approaching a credit union instead of a bank or asking someone with good credit to cosign the loan. You might also boost your odds of success by offering to secure the loan with collateral. If you're applying for a car loan or mortgage, save up to make a bigger down payment. A bigger down payment will reduce the cost you have to borrow and may make it easier to get approved.\nAre you trying to get a credit card? See if someone you trust who has good credit will add you as an authorized user on their credit card. If you're struggling to get a loan for your business, consider other financing options such as getting a business credit card, invoice financing or microloans.\nIf you're self-employed and planning to apply for credit in the near future, it may be a good idea to try to improve your credit score first. You can help to increase your credit score by paying your bills on time, paying down your debt so that your credit utilization ratio is under 30%, keeping existing credit accounts open even if you aren't using them, and limiting your applications for new credit. You can also use Experian Boost™† , a free service that adds your on-time utility and cellphone bill payments to your Experian credit report, potentially increasing your credit scores. END
 TITLE: Does Being Self-Employed Affect Your Credit? CONTENT: Self-Employment and Your Credit\n-------------------------------\nIn and of itself, self-employment doesn't help or hurt your credit scores. In fact, your self-employed status may not show up on your credit history at all. Still, lenders may view self-employed borrowers with some caution. Thankfully, there are steps you can take to alleviate their concerns. If you run into problems getting credit, checking your credit score and taking steps to improve it can help. With a little effort, you could enjoy all the freedoms self-employment has to offer and still be able to get credit when you need it. END
 TITLE: What Is the Rule of 55? CONTENT: Can I Withdraw From My 401(k) at 55 Without a Penalty?\n------------------------------------------------------\nIf you leave your job at age 55 or older and want to access your 401(k) funds, the Rule of 55 allows you to do so without penalty. Whether you've been laid off, fired or simply quit doesn't matter—only the timing does. Per the IRS rule, you must leave your employer in the calendar year you turn 55 or later to get a penalty-free distribution. (The rule kicks in at age 50 for public safety workers, such as firefighters, air traffic controllers and police officers.) So, for example, if you lost your job before the eligible age, you would not be able to withdraw from that employer's 401(k) early; you'd need to wait until you turned 59½.\nIt's also important to remember that while you can avoid the 10% penalty, the rule doesn't free you from your IRS obligations. Distributions from your 401(k) are considered income and are subject to federal taxes. END
 TITLE: What Is the Rule of 55? CONTENT: When Does the Rule Not Apply?\n-----------------------------\nThe Rule of 55 doesn't apply to any retirement plans from previous employers. Only the 401(k) you've invested in at your current job is eligible. Additionally, the Rule of 55 doesn't work for individual retirement accounts (IRAs), including traditional, Roth and rollover accounts. You'll have to wait until age 59½ to access those assets without penalty.\nThere's a way around this, however: You could roll over the funds from your former 401(k) and IRA plans into your current 401(k). Note that the process can be complicated, and not all employers accept rollovers. Before initiating a transfer, talk to your human resources representative and consult with a tax advisor to avoid unnecessary headaches. If you are allowed to make the transfer, all the funds in your current 401(k), including the transferred amount, will be available if you take early distribution using the Rule of 55. END
 TITLE: What Is the Rule of 55? CONTENT: Is It a Good Idea to Use the Rule of 55?\n----------------------------------------\nJust because you can take distributions from your 401(k) or 403(b) early doesn't mean you should. Depending on your financial situation, it might be better to let your money continue to grow. Holding off withdrawals could help you better position yourself for a financially sound future. If you're tempted to withdraw retirement funds before you're eligible, instead consider finding another job, drawing from your savings or using other sources of income until you need to tap into your retirement savings.\nIf you decide to begin withdrawing funds from your 401(k) early, the long-term value of your portfolio will likely decrease. It's essential that you time your withdrawals carefully and take into account how much they would cost you in taxes. To create a strategy that makes sense in your situation, consider working with a financial advisor or a retirement planner. END
 TITLE: What Is the Rule of 55? CONTENT: Will My Credit Score Be Impacted if I Withdraw Early?\n-----------------------------------------------------\nWithdrawing funds from your 401(k) early won't impact your credit directly since the credit bureaus don't track activity on your retirement accounts.\nMaking an early withdrawal can indirectly affect your credit when you use the money to pay down outstanding debt. It may seem like an easy way to ease a debt burden or boost your credit, but in most cases, this shouldn't be the only reason to withdraw funds from your 401(k). Such a move should only be considered in a financial emergency when you have exhausted all other options. END
 TITLE: What Is the Rule of 55? CONTENT: The Bottom Line\n---------------\nIn some cases, it might make sense to take advantage of the Rule of 55 and withdraw money from your 401(k) or 403(b) before age 59½. But it's generally recommended to let your money grow in your retirement accounts as long as you can.\nThere are many factors to consider before withdrawing from your 401(k) early, including taxes, life expectancy, savings and investment accounts, and more. If you're thinking of using the Rule of 55, consult with a financial professional to see if it's indeed the best option for you. END
 TITLE: How Does Your Credit Score Impact Your Retirement? CONTENT: Why a Good Credit Score Is Important in Retirement\n--------------------------------------------------\nYour credit scores continue to play an integral role in determining your options and expenses during retirement. For example, your credit can be important if you want to:\n*   **Move to a new home.** You may want to move to a smaller home or an area with a lower cost of living. Landlords will want to review your credit before accepting your rental application. Or, if you plan on buying a home, your credit can impact your ability to get a mortgage and the interest rate you'll receive.\n*   **Renovate your home.** Perhaps you want to add a room, create a new outdoor space or make other changes to your home. A personal loan or cash-out refinance could help you fund the project. The better your credit, the more likely you'll be able to get approved for a large enough loan with a low rate.\n*   **Travel the world.** If travel is on your to-do list, you might be interested in a rewards credit card that you can use to earn miles, points or cash back. You can then redeem your rewards to cover your travel expenses. The catch? The best cards often require a good to excellent credit score.\n*   **Pay for medical expenses.** Health care costs can rise with age, and having good credit can help if you want to pay a bill over time or are taking out a loan in anticipation of an upcoming procedure.\n*   **Lower your monthly bills.** Lowering your monthly expenses can make a big difference when you're living on a fixed income. With good credit, you may be able to refinance a mortgage or auto loan to lower your interest rate and monthly payments. Or, you could save money by taking out a low interest personal loan to consolidate higher interest debts. Good credit can also lead to cheaper homeowners insurance and auto insurance in most states.\n*   **Help your family members.** Good credit also allows you to help a child or grandchild get their footing by cosigning an apartment lease or auto loan.\nPut simply, whether or not you're borrowing money, good credit can give you more opportunities and lower your expenses. END
 TITLE: How Does Your Credit Score Impact Your Retirement? CONTENT: How to Keep Your Score High During Retirement\n---------------------------------------------\nMaintaining, building and rebuilding your credit isn't any different now that you're retired—the same factors will determine your credit scores.\nThe good news is that you likely have a long credit history, which can be good for your credit scores. Other important scoring factors include your payment history and credit usage. To address those, you can:\n*   **Continue making your payments on time.** Your payment history is the most important credit scoring factor, and it encompasses all the positive and negative marks associated with your accounts. Making payments on time is best for your credit, while missing a payment, having an account sent to collections or declaring bankruptcy can hurt your credit.\n*   **Pay down revolving account balances.** Your credit utilization rate shows how much of your available credit you're using. Keeping your account balances well below credit limits is best for your scores. Experts recommend a utilization rate of 30% or less to maintain good credit scores. To avoid paying interest on credit cards, try to pay off your balance in full each month.\nOther factors can also be important, such as whether you have experience paying off installment loans and managing credit cards (having a mix of accounts can help your scores)—or whether you've recently applied for a new loan or card, which can ding your credit scores a little.\nAnother thing to keep in mind is that if you're entering retirement without any debt, you may be in a great financial situation. However, without an open loan or credit card, you might not be scoreable because there isn't any recent information in your credit reports.\nTo maintain your credit without paying interest, you could open a credit card, use the card for a small monthly bill and then pay off the balance in full each month. This can add a current account to your credit reports and help you maintain a recent record of on-time payments and low utilization. END
 TITLE: How Does Your Credit Score Impact Your Retirement? CONTENT: Does Retirement Affect Credit Scores?\n-------------------------------------\nCredit scores typically don't consider your age, income or employment. They are only a reflection of how well you've managed debt. As a result, retiring won't have any direct impact on your credit scores. But there could be an indirect impact as you settle into a new lifestyle.\nFor example, your income could decrease while your expenses stay flat. As a result, you might wind up taking on new debt to fund that lifestyle. Rising credit card balances or missed payments could hurt your scores.\nOn the other hand, you may be able to better manage your bills and budget after leaving the rat race. Perhaps you can find creative ways to save money to help pay down your credit cards and increase your credit scores as a result. END
 TITLE: How Does Your Credit Score Impact Your Retirement? CONTENT: Continue Monitoring Your Credit\n-------------------------------\nIn addition to paying attention to their credit scores, retirees may want to enroll in some form of credit monitoring. Children and seniors tend to be the most at-risk age groups when it comes to identity theft, and retirees who have built up their nest eggs could be prime targets for fraudsters.\nA credit monitoring program like the one offered by Experian can send you an alert when there's an unusual or suspicious change in your credit report, allowing you to quickly act to stop an identity thief who opens an account in your name. END
 TITLE: Can You Raise Your Credit Score by 200 Points? CONTENT: How Long Does It Take to Improve Your Credit Score?\n---------------------------------------------------\nYou can always make improvements in your credit scores, but there's no guaranteed timeline for gaining a set number of points. Your timeline for improvement can be longer or shorter based on your credit habits, and how they work in combination with one another.\nA substantial gain in points will require some time and patience, but the sooner you start implementing positive credit habits, the sooner you'll hit your goal. You can start building a higher credit score right away by reducing your credit card balances, managing your credit card and loan accounts responsibly, and monitoring your credit file.\nIt's also important to avoid adding negative items to your credit file. Filing bankruptcy, for instance, is one of the most impactful items to your credit reports, with the potential to cost you hundreds of points. Other severely damaging items on your credit report include collection accounts and vehicle repossession. END
 TITLE: Can You Raise Your Credit Score by 200 Points? CONTENT: What Factors Affect Your Credit Score?\n--------------------------------------\nUnderstanding what goes into your credit scores can help you start gaining points faster and build up a strong credit file. Here are the main factors that go into calculating your scores:\n*   **Payment history**: Whether you pay your credit cards and loans on time accounts for 35% of your FICO® Score☉ , the score most often used by lenders.\n*   **Credit balances**: Credit utilization, or the percentage of your available credit that you're using, makes up 30% of your FICO® Score. Keeping your balances under 30% of total credit available is key to maintaining a solid credit score; for top scores, aim to keep your utilization in single digits.\n*   **Length of credit history**: The length of time you've had your credit accounts open makes up 15% of your FICO® Score. The longer you have your accounts open, the better.\n*   **Applications for new credit**: Applications for credit cards and loans can cost you a few points each, and they impact your scores for a year. New applications account for 10% of your FICO® Score. END
 TITLE: Can You Raise Your Credit Score by 200 Points? CONTENT: How to Improve Your Credit Score\n--------------------------------\nThere are a handful of ways to gain points, but the best way to improve your credit scores is to practice good credit habits over time. Here are some of the best ways to gain points and and maintain a strong credit file:\n*   **Pay every bill on time.** Paying credit cards and loans on time is the biggest factor in improving your scores, and it shows creditors that you're a reliable borrower. Although non-debt bills don't typically impact your credit, falling behind on them can result in accounts going to collections, which has a severe negative impact on your scores.\n*   **Keep your balances to a minimum.** Paying down your credit card balances will reduce your credit utilization ratio, which could help improve your scores. Low balances also show creditors that you're not strapped for cash and you can manage your credit card spending.\n*   **Limit your applications for new credit.** When you make lots of applications for new credit, your scores can take a hit. Multiple applications signal to lenders that you might be in financial trouble and could be taking on lots of new debt. You can limit the damage of comparison shopping by making all of your applications for a single type of credit, such as a mortgage or a car loan, within a two-week time frame.\n*   **Build long-term credit history.** The longer you keep your credit accounts open, the more your scores will improve. But you can still have high scores even if you haven't been using credit for a long period of time, as long as you practice good credit habits. You can also try becoming an authorized user to help lengthen your credit history.\nAnother important habit to practice while working on your credit scores is to keep an eye on your credit file. Monitoring your credit report and score for free with Experian will help you identify areas for improvement. It can also help you quickly catch errors that could hurt your scores and undo all of your hard work. END
 TITLE: Can You Raise Your Credit Score by 200 Points? CONTENT: Is There a Quick Fix for Repairing Credit?\n------------------------------------------\nIf you have negative items on your credit file, you might be tempted to work with a credit repair company for a quick fix.\nCredit repair companies offer to \"help\" by saying they can remove negative items from your credit reports. They do this by taking over communications with your creditors or reporting agencies, and filing disputes on your behalf. You typically pay around $50 to $100 a month for this service. If an item on your credit report is correct, it cannot be removed by a credit repair company or anyone else. And the damage credit repair companies could cause to your credit, by requiring you to stop paying your bills, is substantial.\nThe truth is that building great credit takes time. Correct information, even if it is negative, cannot be permanently removed from your reports until it's due to drop off, which generally takes seven to 10 years. During that time, the impact of negative information decreases and your scores can improve.\nIf you find incorrect information on your credit reports, the best solution is to file a dispute, which you can do for free, and it doesn't require any help from a third party. END
 TITLE: Can You Raise Your Credit Score by 200 Points? CONTENT: Boost Your Credit\n-----------------\nWhen you're working to improve your credit scores, the best approach is to practice healthy credit habits over the long haul. But if you're struggling to get approved for your first credit card or loan, it can feel like you're stuck in a catch-22, since you need credit to build credit.\nOne way to jump-start the process is by using Experian Boost™† . This free service allows you to add non-debt payments to your credit file. If you have a history of on-time payments for your cellphone, utility bills or even your Netflix® account, you can use Experian Boost to add those payments to your Experian credit report and improve your credit scores instantly. END
 TITLE: How to Manage Your Debt CONTENT: Get a Handle on Your Debt\n-------------------------\nProperly managing debt has two main components: paying all bills on time and keeping your balances low. To do both, you must first understand exactly how much debt you have. That can help you determine if you can afford to take on further debt, if you have the means to pay extra toward your current balances, and if it's time to make a change through a process like debt consolidation.\nHere's how to get a handle on how many debt accounts you have and how much you owe:\n1.  **Check your credit reports.** Look at each of your credit reports from all three consumer credit bureaus (Experian, TransUnion and Equifax) at least once per year. Viewing your credit report regularly is a good habit to get into, and it's free to access your report once per week from each credit bureau via AnnualCreditReport.com through April 20, 2022. You can also view your Experian credit report and FICO® Score☉ for free directly through Experian.\n2.  **Keep track of your debt accounts.** When evaluating your credit report, pay special attention to the \"Accounts\" section. That's where you'll find all credit cards and loans in your name, plus their account status (such as \"current\" or \"past due\"), credit limit or original balance, and term. Create your own record of your debts so they're easy to keep track of, whether that's in a spreadsheet or written down in a notebook. For each account, note the lender, current balance, interest rate and monthly payment due date, plus the original balance and final payoff date if it's a loan. Having this information in one central place can help you feel less overwhelmed by debt, and can help you more easily identify any action you need to take.\n3.  **Make sure you recognize all the accounts listed on your credit report.** If you didn't open one or more of the accounts you see, it's possible a fraudster did so in your name. Contact the lender right away to figure out whether you've been a victim of identity theft. You can spot these issues more quickly when you monitor your credit regularly, perhaps with a service like Experian's free credit monitoring tool, which provides an updated Experian credit report every 30 days. END
 TITLE: How to Manage Your Debt CONTENT: Pay Bills on Time and Pay More Than the Minimum\n-----------------------------------------------\nThe most important element of your FICO® Score is your payment history. The more often you make on-time payments toward your accounts, the better it is for your scores.\nAs you manage your debt, it's crucial you pay every bill on time, as even a single late or missed payment can have a significant effect on your credit. Setting up automatic payments from your bank account makes sure you pay at least the minimum required payment each month—just be sure to keep enough money in the account to cover it. Your credit score will benefit even further if you pay more than the minimum on your credit cards (more on that below).\nMaking payments for more than your monthly minimum will help prevent you from carrying balances that will result in interest charges. Getting into the habit of paying down credit card balances as much as possible will help prevent charges from building up to the point that your debt is out of control. END
 TITLE: How to Manage Your Debt CONTENT: Limit Your Outstanding Balances\n-------------------------------\nThe second most important factor in your FICO® Score is the amount of debt you owe, which also includes the amount of credit used in comparison to your credit cards' limits (your credit utilization). For the most benefit to your credit scores, it's best to keep balances as low as possible. That's because your credit scores can be negatively affected more significantly as your utilization approaches and climbs above 30%. In other words, if your limit on a credit card is $1,000, think of $300 as your actual limit for charges each month. For the best credit scores, keep your utilization in single digits.\nMake it a goal to pay off your credit card balance in full by your billing date to keep your credit utilization as low as possible. END
 TITLE: How to Manage Your Debt CONTENT: Use Credit Cards Strategically\n------------------------------\nThere are times when using a credit card is a smart way to finance a purchase, particularly if you use a credit card that allows you to collect rewards. Cash back or travel credit cards, for example, may give you a statement credit or travel miles for every dollar you spend. Choose a card that provides rewards on your biggest spending categories, like groceries, gas, dining out or entertainment.\nCarrying a balance and paying interest on the card will eradicate those benefits, however. Only consider opting for a rewards card if you're confident you can pay off your balance each month. END
 TITLE: How to Manage Your Debt CONTENT: Carefully Consider Taking on New Debt\n-------------------------------------\nWith any type of debt, there's the risk that you won't be able to make a payment on the account and wind up with a late payment or, at worst, a defaulted account. This can result in damage to your credit score, which can make it harder to borrow in the future. If you're not sure that you'll be able to make debt payments as agreed, hit pause before applying for a new credit account.\nConsider, for example, using your credit card only for occasional purchases you have to finance, like a new computer that you don't have the savings to cover. Or, use your rewards credit card for specific purchases you'll get cash back or points for, then pay off the whole balance each month.\nWhen looking into an installment loan, use a calculator—one for car payments or mortgages, for example—to understand exactly how much the monthly payment could burden your budget. END
 TITLE: How to Manage Your Debt CONTENT: Avoid Common Credit Mistakes\n----------------------------\nThese habits can make debt more of a strain, and can prevent your credit score from benefiting from the debt you've decided to take on.\n*   **Making only the minimum credit card payment:** While paying the minimum balance every month will prevent a missed or late payment, it can be a recipe for a ballooning credit card balance. Make the minimum payment only during months when your budget truly has no room to stretch; otherwise, always consider the full outstanding balance the ideal amount to pay off each month.\n*   **Closing credit cards you rarely use:** If a credit card comes with a high annual fee that you can no longer afford, closing the account could be a good idea. In nearly all other cases, your credit score will be stronger if you have a long credit history and a higher overall credit limit (assuming you use only a small proportion of it). Consider keeping your oldest cards open and making occasional charges to keep them active and prevent credit limit reductions or account closure.\n*   **Assuming paying off an installment loan will improve credit:** You likely won't see an immediate improvement in your credit score when you pay off a mortgage, car loan, student loan or personal loan—even if the loan is paid in full earlier than required. The loan will be \"closed\" on your credit report, and all of that loan's positive payment history will no longer figure as significantly into your credit score. It may give you peace of mind to pay off a loan early, but the credit score impact shouldn't be the top reason you do so.\nManaging your debt so you get the most benefit from your loans and credit cards involves being aware of exactly how much debt you have and keeping balances low—particularly with credit cards—so you don't find yourself taking on more debt than you can comfortably afford. Simply knowing how much you owe and paying as much as you can toward your debt can help you reach your financial goals sooner rather than later. If you're worried your debt has already gotten out of hand, consider enlisting the assistance of a certified credit counselor, who can offer advice and more to help you bring your debt back under control. END
 TITLE: How to Know if a Debt Management Plan Makes Sense CONTENT: How Do Debt Management Plans Work?\n----------------------------------\nA debt management plan (DMP) is a way for you to pay off your credit card and possibly unsecured personal loan debt by sending a monthly payment to a credit counselor, who distributes the funds to your creditors. Plans typically last three to five years, with the goal of deleting all the debts in the plan. You cannot obtain new debt while participating in a DMP.\nTo use a debt management plan, you'll need to find a reputable credit counselor. The U.S. Justice Department provides a list of approved credit counselors by state; you can also look to the National Foundation for Credit Counseling for their list of accredited counselors.\nIn your first meeting with your credit counselor, you'll share your financial goals and review your entire financial picture with them. If you have enough money to put toward debt payment after meeting your essential expenses and setting aside a little for savings, your counselor may offer a DMP. It will include the monthly payment (including a nominal administration fee), the duration of the plan and approximate total interest costs.\nYour credit counselor will negotiate with your creditors, who may agree to lower or eliminate fees, reduce interest rates and possibly even reduce the amount you owe. If you agree to the DMP, you will close your credit cards and give the agency permission to manage your accounts. You will send the counselor a single payment each month, and the counselor will pay your creditors. You just need to ensure that enough money is in your checking account on the date the agency withdraws the funds.\nIf you're having difficulties managing debt on your own, debt management plans offer several advantages:\n*   **Payment management**: Your credit counselor takes over payments so you can focus on other aspects of your life.\n*   **Single monthly payment**: You make a single payment each month instead of several, so handling your finances is simplified.\n*   **Financial education and support**: Credit counseling agencies offer workshops, additional counseling sessions and other resources to help get you back on solid financial footing.\n*   **Budget help**: Your counselor works with you to develop a livable budget that makes room for debt payment and savings.\n*   **Fewer collection calls**: Once your DMP is in place, you should get fewer calls from creditors and collection agencies.\nKeep in mind, DMPs are primarily for credit card debt, though sometimes collection accounts and unsecured loans can be included. Secured debts such as mortgage and auto loans, medical and legal bills, and student loans are not included in DMPs. Your credit counselor should provide information on how to best deal with them.  \nHow Does a Debt Management Plan Affect Your Credit?\n---------------------------------------------------\nEnrolling in a debt management plan will not hurt your credit score on its own. Your credit report will note that you are participating in a DMP, but such notes are not calculated into credit scores.\nKeep in mind, though, that anyone who pulls your credit report will see it and is free to make a judgment about it.\nActions taken as part of a DMP can hurt your credit scores. Here's how:\n**Increased credit utilization**: As part of your DMP, you'll be required to close the credit card accounts you're paying off under the plan. When you close a credit card, the amount of credit available to you shrinks, which increases your credit utilization rate (the amount of available credit you're using). Credit utilization accounts for 30% of your FICO® Score☉ , so closing accounts can negatively impact your scores.\n**Diminished account variety**: Managing different types of credit accounts is usually good for a credit score, so closing them can shave points from your score.\n**Possible late payments**: The Federal Trade Commission recommends you keep paying your creditors until you receive written confirmation from them noting they have accepted your DMP. Then check with your credit counselor to make sure payments will be made by each account's due date every month, and follow up with creditors to confirm the agency is paying bills on time.\nOn the other hand, DMPs can elevate your credit scores over the long term. If you had a history of delinquencies, you'll be paying on time, which is positive. Your debt will steadily decline too. Eventually your scores should not just recover, but escalate.  \nHow Is Debt Management Different From Debt Settlement?\n------------------------------------------------------\nAlthough debt management and debt settlement may sound similar, they are very different. With DMPs, you are satisfying 100% of the amount you owe, while debt settlement allows you to pay less than the full balance. For that reason and more, debt settlement can hurt your credit significantly more than a DMP.\nOther ways debt settlement differs from a debt management plan:\n*   **Debt settlement firms require you to stop making debt payments.** The thought is that if you stop making payments, your account will eventually become delinquent. At that point, usually when your account is referred to collections, the creditor will be willing to settle for less than the full amount owed. While you wait out the process, late payments are regularly reported to the credit bureaus, damaging your credit. With a DMP, the goal is to keep your credit in good standing and negotiate terms that will allow you to pay the debt in full.\n*   **Debt settlement companies have a profit motive.** Debt settlement companies are for-profit businesses that usually charge a percentage of the settled debt. For example, if you owe $5,000 and your debt was settled for $3,000, the company may charge you 25% of the $2,000 they saved you—costing you $500. And though you'd be wise not to avoid credit payments as a strategy to reduce debt, these companies can't do anything you can't do for free on your own.\n*   **You may have to pay taxes on the settled sum.** Forgiven debt of $600 or more is considered taxable income by the IRS. The settlement discount, then, may not be as attractive as it initially seemed.\nIs a Debt Management Plan Right for You?\n----------------------------------------\nA debt management program may make sense if:\n*   Most of your debts are unsecured credit card balances.\n*   The interest rate reductions are especially favorable.\n*   You have a secure income.\n*   The payment is feasible for years and doesn't jeopardize your essential expenses.\n*   You're ready to make necessary budgetary changes to pay off your debt.\n*   You can live a cash-based lifestyle for a number of years.\nAlternatives to Debt Management\n-------------------------------\nEven if a DMP is starting to sound like a good decision, weigh it against other potential options:\n**DIY**: Call the credit card companies, explain that you want to concentrate on paying off your debts, and ask if they will reduce the interest rate for you. Some may. Then pay your creditors with the same system: Determine a fixed amount you can send every month, and stop charging. As one account is paid off, pay more to the others until you're debt-free.\n**Debt consolidation loan**: If your credit scores are decent, you may be able to use a consolidation loan. With it you bundle all or most of your debts into one loan that offers a lower interest rate. Even if the lender charges an origination fee of a few percentage points, you may still come out ahead. And if the term is longer than five years, the monthly payment may be far lower than what it would be with a DMP.\n**Balance transfer credit card**: Another way to self-manage debt is to get a low or 0% annual percentage rate (APR) balance transfer credit card. To qualify, your credit scores usually need to be 670 or higher, but the savings can be tremendous. If the APR on a credit card with a balance of $8,000 is 26%, and you delete it in 15 months at zero interest, the accumulated interest you'd save would be $1,456. Use a balance transfer credit card, pay it off within the same time frame, and the only extra charge you'd pay would be a transfer fee (typically 3% of the transferred amount) of $240.\n**Bankruptcy**: Although this should be a very last choice, there may be no other options for some severely indebted people. A Chapter 7 will wipe out all allowable unsecured debts so you can start fresh, but you have to qualify and can lose property. A Chapter 13 lets you pay a wide variety of debts through the court over three to five years. Interest is dischargeable and you get to keep your property, but your spending may have to be pared down. Both bankruptcy types have dramatically bad effects on your credit scores.  \nWeigh Your Options\n------------------\nSo is a DMP the best option for you after all? If your credit history is attractive (check your Experian credit report for free to find out), you need high credit scores now, and you can manage your accounts with a few expense or income adjustments, maybe not. Under the right circumstances it can be, though, and it's definitely worth exploring if you're feeling crushed by credit card debt. At the very least, a nonprofit credit counselor will provide professional financial guidance at no cost to you. END
 TITLE: How to Know if a Debt Management Plan Makes Sense CONTENT: How Does a Debt Management Plan Affect Your Credit?\n---------------------------------------------------\nEnrolling in a debt management plan will not hurt your credit score on its own. Your credit report will note that you are participating in a DMP, but such notes are not calculated into credit scores.\nKeep in mind, though, that anyone who pulls your credit report will see it and is free to make a judgment about it.\nActions taken as part of a DMP can hurt your credit scores. Here's how:\n**Increased credit utilization**: As part of your DMP, you'll be required to close the credit card accounts you're paying off under the plan. When you close a credit card, the amount of credit available to you shrinks, which increases your credit utilization rate (the amount of available credit you're using). Credit utilization accounts for 30% of your FICO® Score☉ , so closing accounts can negatively impact your scores.\n**Diminished account variety**: Managing different types of credit accounts is usually good for a credit score, so closing them can shave points from your score.\n**Possible late payments**: The Federal Trade Commission recommends you keep paying your creditors until you receive written confirmation from them noting they have accepted your DMP. Then check with your credit counselor to make sure payments will be made by each account's due date every month, and follow up with creditors to confirm the agency is paying bills on time.\nOn the other hand, DMPs can elevate your credit scores over the long term. If you had a history of delinquencies, you'll be paying on time, which is positive. Your debt will steadily decline too. Eventually your scores should not just recover, but escalate.  \nHow Is Debt Management Different From Debt Settlement?\n------------------------------------------------------\nAlthough debt management and debt settlement may sound similar, they are very different. With DMPs, you are satisfying 100% of the amount you owe, while debt settlement allows you to pay less than the full balance. For that reason and more, debt settlement can hurt your credit significantly more than a DMP.\nOther ways debt settlement differs from a debt management plan:\n*   **Debt settlement firms require you to stop making debt payments.** The thought is that if you stop making payments, your account will eventually become delinquent. At that point, usually when your account is referred to collections, the creditor will be willing to settle for less than the full amount owed. While you wait out the process, late payments are regularly reported to the credit bureaus, damaging your credit. With a DMP, the goal is to keep your credit in good standing and negotiate terms that will allow you to pay the debt in full.\n*   **Debt settlement companies have a profit motive.** Debt settlement companies are for-profit businesses that usually charge a percentage of the settled debt. For example, if you owe $5,000 and your debt was settled for $3,000, the company may charge you 25% of the $2,000 they saved you—costing you $500. And though you'd be wise not to avoid credit payments as a strategy to reduce debt, these companies can't do anything you can't do for free on your own.\n*   **You may have to pay taxes on the settled sum.** Forgiven debt of $600 or more is considered taxable income by the IRS. The settlement discount, then, may not be as attractive as it initially seemed.\nIs a Debt Management Plan Right for You?\n----------------------------------------\nA debt management program may make sense if:\n*   Most of your debts are unsecured credit card balances.\n*   The interest rate reductions are especially favorable.\n*   You have a secure income.\n*   The payment is feasible for years and doesn't jeopardize your essential expenses.\n*   You're ready to make necessary budgetary changes to pay off your debt.\n*   You can live a cash-based lifestyle for a number of years.\nAlternatives to Debt Management\n-------------------------------\nEven if a DMP is starting to sound like a good decision, weigh it against other potential options:\n**DIY**: Call the credit card companies, explain that you want to concentrate on paying off your debts, and ask if they will reduce the interest rate for you. Some may. Then pay your creditors with the same system: Determine a fixed amount you can send every month, and stop charging. As one account is paid off, pay more to the others until you're debt-free.\n**Debt consolidation loan**: If your credit scores are decent, you may be able to use a consolidation loan. With it you bundle all or most of your debts into one loan that offers a lower interest rate. Even if the lender charges an origination fee of a few percentage points, you may still come out ahead. And if the term is longer than five years, the monthly payment may be far lower than what it would be with a DMP.\n**Balance transfer credit card**: Another way to self-manage debt is to get a low or 0% annual percentage rate (APR) balance transfer credit card. To qualify, your credit scores usually need to be 670 or higher, but the savings can be tremendous. If the APR on a credit card with a balance of $8,000 is 26%, and you delete it in 15 months at zero interest, the accumulated interest you'd save would be $1,456. Use a balance transfer credit card, pay it off within the same time frame, and the only extra charge you'd pay would be a transfer fee (typically 3% of the transferred amount) of $240.\n**Bankruptcy**: Although this should be a very last choice, there may be no other options for some severely indebted people. A Chapter 7 will wipe out all allowable unsecured debts so you can start fresh, but you have to qualify and can lose property. A Chapter 13 lets you pay a wide variety of debts through the court over three to five years. Interest is dischargeable and you get to keep your property, but your spending may have to be pared down. Both bankruptcy types have dramatically bad effects on your credit scores.  \nWeigh Your Options\n------------------\nSo is a DMP the best option for you after all? If your credit history is attractive (check your Experian credit report for free to find out), you need high credit scores now, and you can manage your accounts with a few expense or income adjustments, maybe not. Under the right circumstances it can be, though, and it's definitely worth exploring if you're feeling crushed by credit card debt. At the very least, a nonprofit credit counselor will provide professional financial guidance at no cost to you. END
 TITLE: How to Know if a Debt Management Plan Makes Sense CONTENT: How Is Debt Management Different From Debt Settlement?\n------------------------------------------------------\nAlthough debt management and debt settlement may sound similar, they are very different. With DMPs, you are satisfying 100% of the amount you owe, while debt settlement allows you to pay less than the full balance. For that reason and more, debt settlement can hurt your credit significantly more than a DMP.\nOther ways debt settlement differs from a debt management plan:\n*   **Debt settlement firms require you to stop making debt payments.** The thought is that if you stop making payments, your account will eventually become delinquent. At that point, usually when your account is referred to collections, the creditor will be willing to settle for less than the full amount owed. While you wait out the process, late payments are regularly reported to the credit bureaus, damaging your credit. With a DMP, the goal is to keep your credit in good standing and negotiate terms that will allow you to pay the debt in full.\n*   **Debt settlement companies have a profit motive.** Debt settlement companies are for-profit businesses that usually charge a percentage of the settled debt. For example, if you owe $5,000 and your debt was settled for $3,000, the company may charge you 25% of the $2,000 they saved you—costing you $500. And though you'd be wise not to avoid credit payments as a strategy to reduce debt, these companies can't do anything you can't do for free on your own.\n*   **You may have to pay taxes on the settled sum.** Forgiven debt of $600 or more is considered taxable income by the IRS. The settlement discount, then, may not be as attractive as it initially seemed. END
 TITLE: How to Know if a Debt Management Plan Makes Sense CONTENT: Is a Debt Management Plan Right for You?\n----------------------------------------\nA debt management program may make sense if:\n*   Most of your debts are unsecured credit card balances.\n*   The interest rate reductions are especially favorable.\n*   You have a secure income.\n*   The payment is feasible for years and doesn't jeopardize your essential expenses.\n*   You're ready to make necessary budgetary changes to pay off your debt.\n*   You can live a cash-based lifestyle for a number of years. END
 TITLE: How to Know if a Debt Management Plan Makes Sense CONTENT: Alternatives to Debt Management\n-------------------------------\nEven if a DMP is starting to sound like a good decision, weigh it against other potential options:\n**DIY**: Call the credit card companies, explain that you want to concentrate on paying off your debts, and ask if they will reduce the interest rate for you. Some may. Then pay your creditors with the same system: Determine a fixed amount you can send every month, and stop charging. As one account is paid off, pay more to the others until you're debt-free.\n**Debt consolidation loan**: If your credit scores are decent, you may be able to use a consolidation loan. With it you bundle all or most of your debts into one loan that offers a lower interest rate. Even if the lender charges an origination fee of a few percentage points, you may still come out ahead. And if the term is longer than five years, the monthly payment may be far lower than what it would be with a DMP.\n**Balance transfer credit card**: Another way to self-manage debt is to get a low or 0% annual percentage rate (APR) balance transfer credit card. To qualify, your credit scores usually need to be 670 or higher, but the savings can be tremendous. If the APR on a credit card with a balance of $8,000 is 26%, and you delete it in 15 months at zero interest, the accumulated interest you'd save would be $1,456. Use a balance transfer credit card, pay it off within the same time frame, and the only extra charge you'd pay would be a transfer fee (typically 3% of the transferred amount) of $240.\n**Bankruptcy**: Although this should be a very last choice, there may be no other options for some severely indebted people. A Chapter 7 will wipe out all allowable unsecured debts so you can start fresh, but you have to qualify and can lose property. A Chapter 13 lets you pay a wide variety of debts through the court over three to five years. Interest is dischargeable and you get to keep your property, but your spending may have to be pared down. Both bankruptcy types have dramatically bad effects on your credit scores. END
 TITLE: How to Know if a Debt Management Plan Makes Sense CONTENT: Weigh Your Options\n------------------\nSo is a DMP the best option for you after all? If your credit history is attractive (check your Experian credit report for free to find out), you need high credit scores now, and you can manage your accounts with a few expense or income adjustments, maybe not. Under the right circumstances it can be, though, and it's definitely worth exploring if you're feeling crushed by credit card debt. At the very least, a nonprofit credit counselor will provide professional financial guidance at no cost to you. END
 TITLE: The Difference Between Debt Consolidation Loans and Debt Management Programs CONTENT: What Is a Debt Consolidation Loan?\n----------------------------------\nDebt consolidation is a method of debt relief where you consolidate your various high interest debts, such as credit cards, into a single monthly payment ideally at a lower interest rate. There are two popular ways to consolidate debt, which can help you streamline your monthly payments and save money on interest over time:\n*   **Debt consolidation loan**: This wraps your other debts into one monthly loan payment, which you pay off in installments for a set amount of time.\n*   **Balance transfer credit card**: This concentrates all your existing credit card debt onto one card. END
 TITLE: The Difference Between Debt Consolidation Loans and Debt Management Programs CONTENT: Debt management is an approach that involves working with a credit counseling agency to help plan and execute a repayment plan. Once a credit counselor reviews your finances, they'll help you develop and stick to a plan for managing all your debt. Credit counselors may also try to reach out to creditors on your behalf to see if they can negotiate lower interest rates on your debt.\nIn most cases, debt management plans outline how much you'll have to pay each month and for how long—and your counselor will hold you accountable for sticking to your plan. They may even take over the repayment for you and you'll pay them each month and authorize them to make payment on your behalf. END
 TITLE: The Difference Between Debt Consolidation Loans and Debt Management Programs CONTENT: What Makes Them Different?\n--------------------------\nThe goal of both of these debt relief methods is the same: to help you regain control of your debt and save some money along the way. The tactics used, however, are significantly different. Debt consolidation can be done on your own, and requires the opening of a new account, whether a personal loan or new credit card. A formal debt management plan, on the other hand, is created with a credit counselor and doesn't involve taking on any additional lines of credit.\nRepayment under these plans looks different too. With a debt consolidation loan, you will make regular monthly installment payments to your new loan. With a balance transfer card, you'll choose how much you want to pay each month at or above the card's minimum payment, for an indefinite time period, ideally until the debt is paid off. Depending on how much debt you had across different accounts and how much you were approved for your debt consolidation loan or for your balance transfer, you may have to continue to pay down other accounts in addition to your consolidation payment. If you have a balance transfer card that offers 0% interest on transfers during an introductory period, you should attempt to pay off your debt before the promotional period ends and the interest rate rises.\nA debt management plan is not a loan but is more of a helpful service generally offered for a low cost by nonprofit organizations. With a debt management plan, your monthly payment typically goes to your credit counseling agency. In most situations, the debt management company will make your monthly payments for you and you'll pay them a single payment that covers all your monthly debt bills. There are some cases where a credit counselor will help you draft a repayment plan but won't take over repayment for you. END
 TITLE: The Difference Between Debt Consolidation Loans and Debt Management Programs CONTENT: What Credit Score Do I Need?\n----------------------------\nIn most situations, your credit score really only comes into play when you have to apply for new credit. Lenders will want to see that you are creditworthy and will use your credit history and scores as an indicator.\nIf you're looking to get a debt consolidation loan or balance transfer credit card, your credit scores are going to get reviewed by the lender. The higher your credit score, the higher the probability you'll get approved for your new loan or card. But that doesn't mean you have to have perfect credit. In fact, there are many debt consolidation loan options that are geared for people who have less than perfect credit scores. Ultimately, if you have a higher credit score, you may be eligible for favorable terms and conditions on your new loan.\nWith a debt management plan, there are no credit score requirements as you are not applying for any new debt. These plans are often used by people who are looking to protect or help rebuild their credit. END
 TITLE: The Difference Between Debt Consolidation Loans and Debt Management Programs CONTENT: How Can They Affect My Credit?\n------------------------------\nDebt relief—if executed well—shouldn't hurt your credit, and it should help you improve your scores over time. With a debt consolidation loan or balance transfer card, there is potential for your score to dip momentarily after you incur a hard inquiry when applying for a new loan. Hard inquiries are reported on your credit score whenever someone checks your reports as part of a new credit application. This change to your credit is typically small and short-lived.\nA debt management plan shouldn't affect your scores, as long as you make all your debt repayments on time, whether via the credit counselor or on your own. When working with another party to pay back your debt, make sure they are trustworthy before letting them take on that responsibility for you. Payment history is the most important aspect of your credit scores, so whatever you do, make sure all your payments are made on time. END
 TITLE: The Difference Between Debt Consolidation Loans and Debt Management Programs CONTENT: Which Method Is Right for Me?\n-----------------------------\nPicking the right debt relief option for you will depend on several things, like how much debt you have, how many accounts your debt spread across, the type of debt you have the most of, and whether you have a good enough credit score to be approved for a new loan.\nA debt consolidation loan might be right for you if you have a substantial amount of credit card debt across several high interest credit cards. You'll want to avoid paying that high interest across all your balances, so getting another loan with a lower rate could help you save a ton of money.\nThink about a debt management plan if you have different types of debt, or more than just credit card debt that is facing default. Credit counseling companies can often help you manage repayment of different debt types, not just credit cards. This type of repayment is also good for people who don't want to apply for new credit, or may not have the credit score necessary to be approved for a new consolidation loan.\nIf you aren't sure how much debt you actually have and want to learn more about your current balances, consider getting a free copy of your credit reports and scores from Experian to see what's in your credit file.\nAnd if you're interested in applying for a debt consolidation loan or a balance transfer credit card, check out Experian's CreditMatchTM marketplace to be paired with specialized offers based on your credit profile. END
 TITLE: Debt Settlement vs. Debt Management Programs: What’s the Difference? CONTENT: At first glance, debt settlement may seem like the better option. A debt settlement company has you stop paying your creditors as they negotiate a lower payment. Then, the debt settlement company pays the creditors on your behalf. Essentially, it seems like you save money and the debt settlement company takes care of getting the payments to your creditors for you.\nThe catch is that the lower payment they negotiate is lower than your full outstanding balance. This harms your credit score because you are not paying off the total amount. Typically with debt settlement, you only pay about 50% to 80% of the balance. Additionally, the debt settlement company does not pay your creditors while they are negotiating the lower payment, so you may begin to receive collection calls. The late payments then get reported to the three major credit bureaus (Experian, TransUnion and Equifax) and stay on your credit report for seven years. Regardless of whether your settlement is successful, your credit will be damaged.\nAlso, keep in mind if the debt is settled for less than the full balance, you may have tax implications because the debt that is forgiven will likely be reported to the IRS as income. Finally, you'll pay hefty fees for this service: You could be charged as much as 15% to 25% of the amount settled. END
 TITLE: Debt Settlement vs. Debt Management Programs: What’s the Difference? CONTENT: Debt Management\n---------------\nDebt management programs (DMPs) are administered by nonprofit credit counseling companies, as opposed to debt settlement companies, which are for-profit. In a DMP, the credit counseling company negotiates with your creditors to reduce your interest rates and fees, or lower monthly payments for you. You still pay off the principal amount, so your credit score is not impacted as it would be with debt settlement. Credit counselors will also help you to improve your money management skills and come up with a workable budget. END
 TITLE: Debt Settlement vs. Debt Management Programs: What’s the Difference? CONTENT: How to Find Credible Debt Management Services\n---------------------------------------------\nIt can be difficult to sort out the scammers from legitimate companies.\n\"Consumers should always do their research ahead of time to protect themselves,\" says Katie Ross, education and development manager at American Consumer Credit Counseling. \"Before you commit to any debt management service, there are a few credentials you should ensure the company has.\"\nThings to look for in a credible agency:\n*   Nonprofit status is important when choosing a debt management service.\n*   Check that the company's credit counselors are certified.\n*   As a rule of thumb, the longer the company has been in business, the more likely it is to have reputable services.\n*   If the company you are considering is a member of a national accreditation association, such as the National Foundation for Credit Counseling, it is probably a credible company.\n*   The agency is licensed and bonded to do business in your state.\n*   The agency charges reasonable fees. Research several different agencies to get a general idea of pricing.\nThe bottom line: Be on the lookout for companies that try to make money off your debt by charging you fees without offering real help. Choose a company that understands your situation and will work with you to reduce your debt without tanking your credit scores or taking advantage of you financially. While debt can be stressful and difficult to deal with, you should make a well-informed decision before choosing a debt settlement company or a debt management program. END
 TITLE: What Is APR and How Does It Affect Me? CONTENT: How Is APR Calculated for Credit Cards?\n---------------------------------------\nCredit cards can have more than one type of APR, and the different rates are tied to what you do with the card. Before we get into the details of each type of APR, let's go over how credit card companies calculates an APR in the first place.\n### How Your Credit Card APR and Interest Charges Are Determined\nCredit card issuers sometimes offer one APR for everyone who gets approved for a credit card, but most of the time, they provide a range instead. The APR you qualify for is based on your creditworthiness.\nThis concept is called risk-based pricing—the APR you qualify for is based on how risky the card issuer considers you to be. If you have excellent credit and a strong financial profile, for instance, you may qualify for the card's lowest interest rate. But if your credit score is low among qualified borrowers, your APR may end up on the higher end of the spectrum.\nOnce you know the APR, you can break it down to understand how much interest you'll pay on a monthly basis. At the end of each day, your credit card issuer will calculate your daily interest rate by dividing your APR by 365.\nFor example, if your interest rate is 20%, your daily interest rate is 0.05479%. So if you have a balance of $1,000 on the first day of your statement, it'll become $1,000.55 at the end of the day with interest. If you don't make any new purchases on day two, your balance will increase to $1,001.10 due to daily compounding interest. As you make purchases throughout the month, your daily interest will continue to compound each day until the statement closes.\nOf course, that doesn't mean you'll actually end up paying credit card interest (more on that in a bit).\n### Types of Credit Card APRs\nWhen you look at your credit card agreement, you may see a handful of different APRs. Here are some to know about:\n*   **Purchase APR**: This is the rate that applies to purchases you make with the card. Keep in mind, though, that if you use your credit card to make a purchase and pay off the full balance during the grace period, you can avoid paying interest.\n*   **Balance transfer APR**: In many cases, the balance transfer APR is the same as the purchase APR. However, balance transfers typically start accruing interest immediately, and there's no grace period like with purchases. Keep in mind, too, that if you move a balance from one card to another, you'll likely be charged a balance transfer fee, which is typically between 3% and 5% of the balance amount transferred. This fee isn't included in the balance transfer APR.\n*   **Introductory APR**: Some credit cards offer an introductory low or 0% APR to give you an incentive to apply for the credit card and to reward you for using it. This low promotional rate for all new purchases, balance transfers or both is available for a set amount of time—at least six months but sometimes as much as 21. When the introductory period ends, the APR will increase, in turn increasing the cost of using the credit card. Your APR may also increase if you trigger the penalty APR by violating any of the terms of the credit card agreement, such as failing to pay on time or paying less than the minimum monthly payment amount.\n*   **Cash advance APR**: When you use your credit card to withdraw cash from an ATM, this APR will apply to the amount you withdraw. Typically, cash advance rates are higher than purchase and balance transfer rates. And like balance transfers, as soon as you take the cash advance, you will begin accruing interest on the amount.\n*   **Penalty APR**: Many credit card agreements include a penalty APR that the company will charge if you fall behind on payments by 60 days or more. With business credit cards, however, you can trigger a penalty APR if you're late by just one day (though terms vary from card to card). All the balances on your account will be subject to the penalty rate, which is often much higher than other interest rates.\n### Where to Find Your Credit Card's APR\nInformation about the various interest rates and fees associated with a credit card can be found in the \"Schumer box.\"\nThe Schumer box was created through legislation spearheaded by now-U.S. Senator Charles Schumer to provide consumers with a simple and standardized display with all the pertinent rate and fee details about a credit card.\nIn 2009, the Credit CARD Act expanded the concept of the Schumer box and added a requirement that credit card companies provide clear information on all credit card statements. This includes how much you'll pay in interest and fees if you opt to pay only the minimum payment amount due every month.\nWhen you're comparing credit cards, you can typically find the Schumer box by clicking on a link from the card's landing page that says something like \"pricing and terms\" or \"rates and fees.\" You'll also get a copy with your cardholder agreement after you've been approved. END
 TITLE: What Is APR and How Does It Affect Me? CONTENT: How Is APR Calculated for Loans?\n--------------------------------\nRemember, the interest rate is what the lender charges to allow you to use its funds. But it's not the only cost associated with borrowing. Depending on the type of loan, the APR calculation may also include various other fees you'll be charged.\nThis is where credit cards and loans differ in how they calculate APR—even if a credit card has an annual fee or other fees, it's not included in the APR formula. With loans, however, the APR truly encompasses the total cost of the debt.\nFor example, a mortgage APR may include points, which are fees paid to lenders at closing in exchange for a lower interest rate. Lender fees and other charges you may need to pay to secure the loan also count toward a loan APR. APRs for dealer-underwritten auto loans sometimes include compensation for the dealer because it's handling the financing. Also, some personal loans carry an origination fee, which is deducted from your loan proceeds before you receive them.\nA loan APR takes these additional costs into account, which is why the APR is typically higher than your interest rate. END
 TITLE: What Is APR and How Does It Affect Me? CONTENT: How to Avoid Paying Interest on a Credit Card\n---------------------------------------------\nVirtually all credit cards offer grace periods—typically 21 days or more after each monthly statement closes—during which you can pay your balance with no interest attached.\nYou can avoid paying interest every month entirely by paying off the full balance by the due date. Remember, though, that the grace period applies only to new purchases. Cash advances and balance transfers don't come with grace periods, so sidestepping paying interest is not likely unless you have an introductory 0% APR promotion on balance transfers.\nIf the due date for your payment rolls around and you don't have the funds to pay your balance in full, you will be charged interest on the amount that remains. These finance charges can snowball due the fact you'll be paying interest on your interest charges as well, a practice known as compounding. Compounding interest means you will be charged on everything you owe—the unpaid amount on the card, the previous month's interest and on whatever new purchases you made.\nCredit card interest can get dangerous if you make just the minimum payment every month. Let's say you purchase a big screen TV and a new sofa for $2,500 on a credit card with an APR of 22%. If you commit and plan for paying this off in 12 months, your monthly payments will be about $234, and you will pay about $308 in total interest charges.\nIf, however, you make only the minimum monthly payment—credit card companies calculate this number differently, but we'll say it's $75 for this scenario—you would still be paying on this purchase more than four years later. Not only that, but you'd also pay a whopping $1,399 in interest, making the total cost of this purchase $3,899, or 55% more than the original sticker price.\nIf possible, make it a goal to pay your balance in full each month to avoid interest. If you have to finance a large purchase over time, consider using a 0% APR credit card to save money. END
 TITLE: What Is APR and How Does It Affect Me? CONTENT: Improve Your Credit to Qualify for Lower Rates\n----------------------------------------------\nLenders consider more than just your credit score when determining your APR on a loan or a credit card. But the better your credit history looks, the higher your chances of scoring favorable terms.\nYou can check your credit scores to see where you stand and pinpoint areas that may need some work. Also, get a copy of your credit report to check for errors and items that may need to be addressed.\nAs you work on improving your credit, it's no guarantee you'll get the best APRs possible, but it will give you the opportunity to get a lower rate than what you currently qualify for, which can save you a lot of money in the long run. END
 TITLE: What to Do if You’re Sued by a Debt Collector CONTENT: What a Lawsuit From a Debt Collector Means\n------------------------------------------\nDebt collectors employ many different tactics to try to collect on a debt—and in many cases, they turn to lawsuits to make it happen.\nWhen a debt collector files a lawsuit against a consumer, they're trying to get a court to force collection. This can come in the form of wage garnishments, property liens and bank account freezes, all of which can have a serious negative impact on your life and financial well-being.\nIf you simply ignore the lawsuit, the court may enter a default judgment, which essentially gives the plaintiff—the collection agency, in this example—what they're asking for. As a result, it's crucial that you respond quickly when you've been sued by a debt collector.\nHere are four steps you can take to protect yourself in a lawsuit. END
 TITLE: What to Do if You’re Sued by a Debt Collector CONTENT: 1\\. Challenge the Lawsuit\n-------------------------\nDebt collectors are never the original lender, which means that there may be details about the situation that you can use in your favor.\nDepending on where you live, for example, a lender may not be legally allowed to collect on a debt after a certain period, which can range from three to 20 years.\nIt's also possible to be sued for a debt that you've already paid off—in this case, a mistake has been made, but you shouldn't have to pay for it.\nFinally, it's possible to be sued for a debt that doesn't even belong to you. Or, even if the debt does belong to you, the collection agency may have the wrong figures or you may no longer owe money because the statute of limitations on the debt has passed.\nIf you disagree with any or all of the information in the lawsuit, you can contest it. You can also challenge a lawsuit if you have evidence that a collection agency has violated the Fair Debt Collection Practices Act and your consumer rights.\nThe important thing is that you respond by the date provided in the summons. END
 TITLE: What to Do if You’re Sued by a Debt Collector CONTENT: 2\\. Provide Documentation\n-------------------------\nIf you're going to challenge the lawsuit, make sure you have evidence of your claims. For example, when a debt collection agency first contacts you about a debt, it's required to provide a debt validation letter within five days. Furthermore, they're required to verify the debt if you dispute it within 30 days of the first contact.\nIf you have these documents, you can share them with the court, along with your own documentation showing that you no longer owe the debt or the figures are incorrect.\nAlso, if you believe the collection agency violated your consumer rights, share documentation backing up your claim, which can be in writing from the agency or a recording of a phone call.\nThe important thing is that you take steps to prove your case so that the court either rules in your favor or limits what the collection agency can do.\nFinally, if you aren't sure you can win but you have limited wages and assets, provide documentation showing this, as the court may prevent the agency from garnishing your wages or freezing your bank accounts. END
 TITLE: What to Do if You’re Sued by a Debt Collector CONTENT: 3\\. Consider Alternatives\n-------------------------\nIf you have no reason to dispute the lawsuit, consider some of your alternative options. If you can afford it, for instance, you may offer to settle the debt.\nDebt settlement involves paying less than what you owe on an account. Because debt collectors typically buy debt for pennies on the dollar, they're often open to a settlement. Even if they're confident they'll win the lawsuit, settlement can help the agency avoid costly court and attorney fees.\nIf your financial situation is dire, you may also consider filing for bankruptcy. While it's rarely ideal, bankruptcy can help you avoid paying the debt and making an already unmanageable situation worse. It could, however, have a devastating effect on your credit. END
 TITLE: What to Do if You’re Sued by a Debt Collector CONTENT: 4\\. Hire an Attorney\n--------------------\nIf you want to fight a debt collection lawsuit, it may be a good idea to hire an attorney. While you can defend yourself and save money, the right attorney will have experience working with consumers and protecting their rights.\nAn attorney can help you determine the best steps to take to defend yourself and which alternatives to consider based on your situation. They can also work as a middleman between you and the collection agency, so you don't have to worry about dealing with the agency directly. END
 TITLE: What to Do if You’re Sued by a Debt Collector CONTENT: How Debt Collections Affect Your Credit\n---------------------------------------\nWhen a lender sells a debt to a collection agency, that agency may choose to report it as a separate account on your credit reports. Just like late payments, collection accounts can damage your credit score significantly.\nBut if the collection account is inaccurate, you can file a dispute with the credit reporting agencies. In some cases, the information may simply be updated instead of removed entirely.\nIf the information is accurate, the collection account will remain on your credit report for seven years from the original delinquency date on the original loan—in other words, the first time you were late on a payment.\nFor example, if you stopped making payments on a loan in July 2019 and the collection account was first reported in January 2020, the negative item will remain on your reports until July 2026. END
 TITLE: What to Do if You’re Sued by a Debt Collector CONTENT: Building Credit After Collections\n---------------------------------\nRegardless of how you approach a lawsuit from a debt collector, it's important to start taking steps to improve your credit. While you can't remove a legitimate collection account from your credit report, you can take steps to build a positive credit history—which can help outweigh negative items on your credit reports over time.\nStart by monitoring your credit regularly and considering areas of your credit reports that you can address. This may include paying down credit card balances, getting caught up on other past-due accounts, disputing inaccurate credit information and more.\nThe process of rebuilding credit after collections can take time, but it can make a big difference in your financial life in the long run. END
 TITLE: What Is a Good Faith Estimate? CONTENT: How Does a Loan Estimate Work?\n------------------------------\nWithin three business days of receiving your loan application, each lender or mortgage broker must provide you with a loan estimate form. They may charge you a modest fee (around $20) to cover the cost of checking your credit report and credit score as part of the process.\nTo obtain a loan estimate, you must provide the lender with the following information:\n*   Full name\n*   Annual income\n*   Social Security number (so the lender can pull a credit report)\n*   Address of the property you want to buy\n*   Estimated value of the property (use the listed asking price or adjust as advised by a real estate professional)\n*   Amount you want to borrow (the property value minus the amount you're prepared to make as a down payment)\nDetails in every loan estimate include:\n*   Loan amount\n*   Term length\n*   Interest rate (If the loan has a variable rate, it will also include when the rate will reset, and how it relates to a published market rate.)\n*   Monthly payment amount, including applicable property taxes and insurance costs\n*   Closing costs\n*   Prepayment penalties (if any) and fees charged in case of late payments\n*   Origination fees, and whether they must be paid in full at closing or will be rolled into the monthly payments\n*   Loan Estimate document. The forms share a common three-page format designed to simplify comparison of estimates from different lenders\nMultiple loan estimates can help you shop for the best mortgage deal. Freddie Mac estimates the average American borrower could save as much as $1,500 over the life of the loan by getting just one extra loan estimate when applying for a mortgage; getting five additional estimates could save you $3,000 or more.\nBecause the lender runs a credit check before providing a loan estimate, getting one causes a hard inquiry to appear on your credit report. This can cause a small drop in your credit scores, but there's no need to worry about multiple inquiries causing cumulative damage to your scores: The FICO and VantageScore® credit scoring systems both are designed to accommodate rate shopping, and they treat multiple inquiries for similar loan amounts as one event, as long as they take place within a few weeks of each other. END
 TITLE: What Is a Good Faith Estimate? CONTENT: How Accurate Is a Loan Estimate?\n--------------------------------\nLoan estimates are just that—estimates, not guaranteed quotes. Lenders will provide more reliable quotes if you respond to a loan estimate with notice of intent to proceed with a formal loan application. If you agree to move forward, the lender typically requests additional financial information, including information on your debts and documents that can verify the income you claimed when seeking the loan estimate. Many lenders also require you to pay an application fee of several hundred dollars when you begin the formal application process.\nLenders recognize it's to their advantage to make loan estimates as accurate as they can be, since inaccurate estimates can cause potential customers to go elsewhere. For that reason, estimates of fees the lender itself assesses are typically quite accurate, but other charges cited in loan estimates may be less so. These include costs that are sometimes split between the buyer and seller but may be assumed in full by one or the other as part of sales negotiations.\nMany homebuyers received revised loan estimates prior to closing on their homes due to changes in initial cost estimates, such as taxes, closing costs or insurance costs. Revised estimates often occur as a result of delays or changes requested by borrowers. If you are shopping for a mortgage, make sure you understand and approve each step of the process to help avoid such changes. Also understand that interest rates, market prices and even taxes and fees can change over time, and that delays can affect them. END
 TITLE: What Is a Good Faith Estimate? CONTENT: What Is a Truth in Lending Disclosure?\n--------------------------------------\nAlong with the good faith estimate, the 2015 Truth in Lending Act update replaced another longstanding mortgage information document, the truth in lending disclosure, which helped explain loan details and costs.\nIf, instead of a standard home purchase mortgage, you apply for a home equity line of credit (HELOC), a manufactured housing loan that is not secured, or a homebuyer assistance program loan, you will still receive a truth in lending disclosure instead of a loan estimate. END
 TITLE: What Is a Good Faith Estimate? CONTENT: What Is a Closing Disclosure?\n-----------------------------\nA closing disclosure is a standardized form your lender must provide you at least three business days before you close on a mortgage loan, summarizing the final terms of the loan. You'll have been approved for the loan at that point, so all terms will be firm—no more estimates. Comparing the five-page closing disclosure to the lender's loan estimate may reveal changes in fees, taxes and other terms. It's wise to study these adjustments carefully and to be sure you are comfortable with all of them before you sign your closing documents. If you have concerns, consult the lender and your attorney or real estate professional. END
 TITLE: Personal Loan Interest Rates and APRs: What’s the Difference? CONTENT: What Is an Interest Rate on a Personal Loan?\n--------------------------------------------\nInterest rates determine the amount you pay for borrowing money. They are expressed as percentages and applied to the loan principal—the amount of money you borrow. Interest rates can be fixed (remaining the same for the life of the loan) or variable (subject to change over the life of the loan). Variable rates, more common with mortgages than with personal loans, typically are higher than the prime interest rate or another published market index, and are adjusted over the life of the loan, typically once a year.\nFor explanation purposes, we'll use an example of a typical five-year personal loan for $10,000 with a fixed interest rate of 9%.\nOver the life of the loan, with monthly compounded interest, you'd expect to pay $2,455 in interest charges in addition to the principal $10,000, for a total of $12,455. Divided by five years of 12 payments each, your monthly loan charge would be $12,455\/60, or $207.58 per month. END
 TITLE: Personal Loan Interest Rates and APRs: What’s the Difference? CONTENT: What Is the APR on a Personal Loan?\n-----------------------------------\nThe annual percentage rate (APR) on a personal loan combines the interest rate with any fees associated with the loan. If there are no fees, the APR is the same as the interest rate, but lenders almost always add upfront charges known as origination fees to the cost of a personal loan.\nOrigination fees can range from 2% to 5%, and fees of 3% are typical. These fees do not affect the monthly payment or interest charges on the loan, but they are part of its total cost. APR changes to reflect them.\nIn our example of a $10,000 five-year loan at 9% interest, adding a 3% origination fee leaves the interest rate and monthly payment amount untouched, but increases the APR from 9% to 10.31%.\nDiffering interest rates, loan lifespans and fees make it tricky to do apples-to-apples comparisons between personal loans, so the APR is a helpful yardstick. A loan with a higher APR will cost more over the lifetime of the loan than one with a lower APR—even if monthly payments don't change. END
 TITLE: Personal Loan Interest Rates and APRs: What’s the Difference? CONTENT: APR vs. Interest Rate on Revolving Accounts\n-------------------------------------------\nWith revolving credit accounts such as credit cards, which let you borrow against a specific spending limit and make variable monthly payments, APR and interest rate are the same thing. The annual fees charged on some credit cards are not reflected in their APRs.\nWhen comparing credit card APRs, keep in mind that many cards have several APRs, each of which apply to a different type of transaction. A low (or even 0%) promotional rate might apply to balance transfers added to the account when it was opened. The APR for purchases applies to ordinary charges made with the card. A higher rate typically applies for cash advances.\nHaving three interest rates apply to various portions of your monthly balance can be bewildering, and differing rules for applying payment to those partial balances can add to the confusion. Some cards apply payments to the highest-interest portion of your balance first, for instance, while others don't apply payments toward cash advances until all other partial balances are paid off.\nYou can use credit card APRs to compare the costs of using credit cards, just as you do with personal loans, but in practice, it can be a little more challenging. END
 TITLE: Personal Loan Interest Rates and APRs: What’s the Difference? CONTENT: How to Get a Great APR on a Personal Loan\n-----------------------------------------\nThe factors that determine the APR on a personal loan are similar to those used in all lending decisions. Lenders typically consider your credit report, credit score, employment history and income before extending a loan offer.\nOften, lenders use credit scores to help decide which applications warrant full consideration—ruling out candidates whose scores don't meet a threshold for a particular loan. Applicants with lower credit scores may not even be considered for the loans with the best available APRs.\nTo get the best loan terms available to you, it can be worthwhile to take a few preliminary steps before you apply for a personal loan:\n*   Review your credit reports, including the one from Experian, for accuracy and submit any corrections to the national credit bureaus (Experian, TransUnion and Equifax).\n*   Check your credit score and take steps to improve it, including:\n*   **Make sure to pay your bills on time.** Every month, without fail. Missing just one payment hurts your credit score more than any other single credit decision you can make.\n*   **Pay down your debts.** High balances, especially those that exceed about 30% of your credit card borrowing limit, can have a negative effect on your credit score.\n*   **Avoid applying for credit too often.** Each time you apply for a loan or credit card, the lender checks your credit through a process known as a hard inquiry, which typically causes a temporary dip in your credit scores. Your scores usually rebound within the space of a few months as long as you keep up with your payments, but they don't have time to recover if you apply for multiple loans in short succession.\n    An important exception to this is when you comparison-shop for loans. To encourage you to apply to multiple lenders when seeking a car loan or mortgage, credit scoring systems treat multiple applications for loans of the type and amount as a single event, which only lowers your score once.\n*   Apply to multiple lenders and shop carefully for the best deal. END
 TITLE: Personal Loan Interest Rates and APRs: What’s the Difference? CONTENT: The Takeaway\n------------\nThe APR is a valuable tool when comparing personal loans. Understanding its relationship to interest rate can help you choose wisely when you shop for the loan that best meets your needs and budget. END
 TITLE: Understanding Loan Origination Fees CONTENT: What Are Loan Origination Fees?\n-------------------------------\nA loan origination fee is an upfront fee charged by a lender to cover miscellaneous costs of making a loan. These might include preparing loan documents, processing your loan application and underwriting the loan (that is, checking your credit to make sure you qualify for the loan).\nSome lenders break out fees for preparation, processing and underwriting separately; others lump them all into the origination fee. Auto loans, mortgage loans, personal loans and student loans often have origination fees. Depending on the type of loan, origination fees may be due upfront as part of your loan closing costs, deducted from your loan proceeds or rolled into the total loan balance to be paid off over time.\nOrigination fees are set before you ever take the loan. If you apply for a mortgage, for example, the lender is required by law to give you a loan estimate that includes information about the cost of your loan, including origination fees and other closing costs. END
 TITLE: Understanding Loan Origination Fees CONTENT: Average Cost of Origination Fees\n--------------------------------\nOrigination fees, generally quoted as a percentage of the total loan amount, vary widely. Federal student loan origination fees are set by Congress; fees for most other loans vary depending on the lender, the type of loan you're getting and your creditworthiness. For example, origination fees on a mortgage loan can be less than 1%, while origination fees on personal loans may be as high as 8% depending on your credit score.\nWhile a lower origination fee may sound like a good deal, it's not always your best option. Because origination fees help compensate lenders for making the loan, you might find that a loan with a lower origination fee makes up for it with a higher interest rate. Especially when taking out a large long-term loan such as a mortgage or student loan, a loan with a lower interest rate is usually a better bet, even if it has a higher origination fee. Even a small increase in your interest rate can add up to thousands of dollars over the life of a large loan. END
 TITLE: Understanding Loan Origination Fees CONTENT: How Does a Good Credit Score Impact Origination Fees?\n-----------------------------------------------------\nHaving a good credit score can make it easier to get approved for all types of loans. It may also spur lenders to offer you a lower origination fee to get your business.\nWhat constitutes a good credit score? Lenders may use different credit scoring models, some specifically designed for their industry, and each lender has its own criteria for determining if you're creditworthy. However, a FICO® Score☉ of 670 or higher is generally considered \"good,\" 740 or higher is \"very good\" and 800 or higher is considered \"exceptional.\" END
 TITLE: Understanding Loan Origination Fees CONTENT: How to Minimize Origination Fees\n--------------------------------\nOrigination fees are set by lenders, and there's no rule that dictates how much they should charge or even requires an origination fee in the first place. As a result, you may be able to get a lower fee than you're originally quoted. (The only exception is federal student loans, whose fees are not negotiable.)\nLegitimate lenders disclose their fees upfront; if you're not happy with the quoted origination fees, here are some ways you can try to lower them.\n*   **Negotiate.** If you have good to excellent credit, you may be in a position to negotiate a lower origination fee. Keep in mind, however, that this generally requires a tradeoff. To get a reduced origination fee, you may have to agree to a higher interest rate or a longer loan term—both of which typically increase the overall total cost of the loan.\n*   **Shop around.** Before applying for a loan, compare various lenders' average origination fees. Lenders sometimes offer low or no origination fees to make their loans more appealing to borrowers. However, be sure to consider interest rates, loan terms and other fees—not just origination fees—to evaluate the overall cost of the loan.\n*   **Ask for seller concessions.** If you're buying a home, see if you can get the seller to pay your origination fees. This tactic works best in a buyer's market in which home sellers are having problems finding buyers.\n*   **Get lender credits.** Mortgage closing costs can run into several thousand dollars. Some mortgage lenders offer credits to cover these costs. The amount of the credits is rolled into your mortgage balance. You'll pay higher interest rates in return for lender credits. However, depending on the size of your mortgage, it may be advantageous to put the money you would have spent on closing costs toward your down payment instead. END
 TITLE: Understanding Loan Origination Fees CONTENT: Additional Loan Fees to Look Out For\n------------------------------------\nOrigination fees aren't the only loan costs you must take into account before signing on the dotted line. Lenders may charge a wide variety of other fees. These fees differ by loan type.\nMortgages:\n*   **Appraisal fee**: The appraisal fee covers the cost of having the property appraised to confirm the loan is big enough to cover the home's value.\n*   **Home inspection fee**: Some lenders require a home inspection before they will approve you for a mortgage; you'll pay a fee for this service.\n*   **Title insurance fee**: his fee covers the title insurance company's costs to insure the transfer of the deed into your name.\n*   **Recording fee**: Mortgage lenders may charge a fee for recording your deed to your new home with local government agencies.\nAuto loans:\n*   **Registration fee**: When you buy a car, you'll pay a state-mandated fee to register it.\n*   **Vehicle inspection fee**: Your state may require inspections to ensure the vehicle meets state standards.\n*   **Destination fee**: Sometimes called the shipping fee, this covers the cost of transporting the vehicle to the dealer.\n*   **Preparation fee\/dealer fee**: Dealers may add in vague fees for getting the vehicle ready for you.\nThere are also some miscellaneous fees that may be applied to any type of loan:\n*   **Brokerage fee**: Loan-matching services may charge a brokerage fee for this service.\n*   **Credit report fee**: his fee covers the lender's cost to obtain your credit report and credit score.\n*   **Underwriting fee**: This charge is for underwriting and approving your loan application.\n*   **Processing fee**: This is a fee for processing the loan.\n*   **Document preparation fee**: This covers the preparation of the documents involved in getting a loan.\nBefore signing any loan documents, make sure to get a detailed breakdown of all the fees you're paying and what each is for. If you see other fees in addition to the origination fee, ask the lender what the origination fee includes to make sure you aren't being charged twice. Don't agree to a loan until you fully understand what each fee is for and how it will be paid. END
 TITLE: Understanding Loan Origination Fees CONTENT: Know Your Score\n---------------\nBecause the costs associated with getting a loan can quickly add up, it's important to pay attention to the details of the loan agreement. Before you start shopping for a loan, get a free copy of your credit report and your credit score to see where you stand and whether you're in a good position to negotiate your origination fees. Understanding your options for handling origination fees will help you choose the best loan for your situation. END
 TITLE: What Is an Adjustable-Rate Mortgage? CONTENT: How Does an Adjustable-Rate Mortgage Work?\n------------------------------------------\nThe interest rate on an ARM is fixed for an initial period, during which it won't change. After that period ends, the rate fluctuates with limits based on the current market rates. A true ARM has a fixed interest rate for just one year.\nThere are, however, hybrid ARMs that offer longer introductory periods where the interest rate is fixed.\n### Types of Adjustable-Rate Mortgages\nHere are five common types of adjustable-rate mortgages you may see when shopping around for a loan:\n*   1-year ARM: The initial rate is fixed for 1 year, after which the rate can be adjusted once a year.\n*   3\/1 hybrid ARM: The initial rate is fixed for the first 3 years, after which the rate can be adjusted once a year.\n*   5\/1 hybrid ARM: The initial rate is fixed for 5 years, after which the rate can be adjusted once a year.\n*   7\/1 hybrid ARM: The initial rate is fixed for 7 years, after which the rate can be adjusted once a year.\n*   10\/1 hybrid ARM: The initial rate is fixed for 10 years, after which the rate can be adjusted once a year.\nIn general, the shorter the initial fixed-rate period, the lower the initial rate will be. For instance, the initial rate on a 1-year ARM will be lower than the initial rate on a 3\/1 ARM, and a 3\/1 ARM will have a lower initial rate than a 5\/1 ARM. This is because the longer the lender keeps the initial rate fixed, the more risk it takes that interest rates will rise during that time.\n### How Much Can the Interest Rate Change on an Adjustable-Rate Mortgage?\nAfter the initial period, the first reset is often capped at a maximum of 2 percentage points, though it can be as much as 5 percentage points. Subsequent rate adjustments are typically limited to 2 percentage points a year.\nThere is also a lifetime rate cap; this is the total maximum rate increase that can be charged over the life of the loan. The lifetime cap is typically 6 percentage points or so above the initial interest rate. While these figures are typical, though, they're not set in stone.\nWhen you apply for a mortgage, a lender is required to provide you with a loan estimate that spells out the various costs and features of the loan. If you are applying for an ARM, the loan estimate will include the maximum pay increase you will owe at the first adjustment, how often the rate can be adjusted, and the maximum monthly payment you could ever be charged. END
 TITLE: What Is an Adjustable-Rate Mortgage? CONTENT: The initial interest rate charged on an adjustable-rate mortgage will typically be lower than the interest rate on a fixed-rate mortgage, primarily because the lender is taking on less risk. That difference can make an ARM attractive because it reduces your monthly payment immediately.\nBut because the interest rate charged on an adjustable-rate loan can rise over time, it can ultimately cost more money in the long run if you're not careful.\nIf you're trying to decide between a fixed- or adjustable-rate mortgage, the right option for you depends on your situation and appetite for financial risk.\nFor example, if you'd prefer to lock in your monthly payment for the life of the loan and can afford the higher payment amount, a fixed-rate mortgage may be the better choice. That's especially the case when interest rates are relatively low, and you have the chance to nail down an initial low rate.\nOn the other hand, an adjustable-rate mortgage can make more sense when mortgage interest rates are relatively high. By taking advantage of a lower interest rate now, you can score a lower monthly payment and hope interest rates drop by the time your initial period ends. That said, you're taking the risk that interest rates may not decrease, which could result in a higher monthly payment after the initial period ends. END
 TITLE: What Is an Adjustable-Rate Mortgage? CONTENT: Who Qualifies for an Adjustable-Rate Mortgage?\n----------------------------------------------\nFrom a creditworthiness standpoint, getting an adjustable-rate mortgage isn't more difficult than getting a fixed-rate loan. In some ways, in fact, you may qualify for the former and not the latter.\nBecause an ARM has a lower monthly payment, it can make it easier to qualify based on debt ratios mortgage lenders use. For example, it's common for a lender to require that your monthly housing payment not exceed 28% of your gross income.\nIf a fixed-rate mortgage with a higher interest rate and monthly payment exceeds that amount, you may be able to qualify by switching to a lower payment on an ARM. END
 TITLE: What Is an Adjustable-Rate Mortgage? CONTENT: When Is an Adjustable-Rate Mortgage a Good Idea?\n------------------------------------------------\nThere are a few situations where it may be worth considering an ARM over a fixed-rate mortgage. Here are some of the more common ones:\n*   **To meet debt ratio requirements**: Getting an ARM can help you pass the debt-to-income (DTI) test lenders consider when reviewing your mortgage application.\n*   **Interest rates are high**: If you have good reason to believe that interest rates are high and may come down, it may not make sense to lock yourself into a high rate. With an ARM, your interest rate can go down over time as market rates change.\n*   **You're planning on refinancing**: If interest rates decrease significantly during your initial fixed-rate period, you may opt to refinance your loan at the lower rate rather than risking it going back up again on your ARM.\n*   **You're anticipating a move**: The average homeowner stays in their home for just over eight years, according to ATTOM Data Solutions. But if you think you won't outlast your ARM's initial fixed period, it may make more sense to take the lower monthly payment and save money. If your plans change, though, it could end up costing you more over time.\nIf you are approved for an ARM, be sure to carefully consider whether you will be able to handle higher payments in the event your ARM eventually adjusts higher. Otherwise, the risk could ultimately force you to sell the home or even default on the loan. END
 TITLE: What Is an Adjustable-Rate Mortgage? CONTENT: Are There Risks When Using an Adjustable-Rate Mortgage?\n-------------------------------------------------------\nThe primary risk of an ARM is that your monthly payment can increase after the initial fixed-rate period. Depending on the size of the adjustment that first year, you may still come out ahead with an ARM after the initial period.\nBut remember that the interest rate can be adjusted in the following years as well, up to a maximum rate cap. If interest rates continue to rise, you could end up paying a lot more in interest than if you had chosen a fixed-rate mortgage initially.\nRefinancing into a fixed-rate mortgage is always an option. Keep in mind, though, that if your ARM rate has moved higher, it's likely that fixed-rate mortgage rates will also be higher than when you first took out your loan.\nEven so, it's possible that you might not qualify to refinance at all. When you apply for a refinance loan, lenders will evaluate your current situation, not the situation when you first bought the house.\nYour credit scores will once again be a major factor in whether you qualify, and in the loan terms you are offered. What's more, if the value of your home or your income has declined, you may not be able to qualify for a refinance. END
 TITLE: What Is an Adjustable-Rate Mortgage? CONTENT: How an Adjustable-Rate Mortgage Could Impact Credit\n---------------------------------------------------\nThe type of loan itself doesn't impact your credit any differently than a fixed-rate mortgage. However, seeing a sudden increase in your monthly payment at the end of the initial fixed period or after that can cause it to become unaffordable.\nIf that happens and you miss payments, it could hurt your credit score. If you miss multiple payments, the lender could choose to foreclose on the house, causing even more damage than the initial missed payments.\nOn the flip side, making your payments on time every month can establish a positive payment history, which can help improve your credit score over time. END
 TITLE: What Is an Adjustable-Rate Mortgage? CONTENT: Where Can I Apply for an Adjustable-Rate Mortgage?\n--------------------------------------------------\nAn adjustable-rate mortgage is generally available from the same lenders that offer fixed-rate loans, including banks, credit unions and online lenders.\nYou can get an ARM as a conventional loan or as a government-backed mortgage from the Federal Housing Administration (FHA) and Veterans Administration (VA). Take some time to research all of your options to ensure that you get the best rate you qualify for.\nAlso, make sure you study the potential monthly costs if your interest rate rises at the first adjustment and at subsequent adjustments. Given the big financial commitment of a mortgage, it's smart to consider these what-ifs.\nIf those potentially higher monthly payments make you nervous, a fixed-rate mortgage may be your better option. END
 TITLE: What Is an Adjustable-Rate Mortgage? CONTENT: Improve Your Credit to Score a Lower Rate\n-----------------------------------------\nAn ARM can provide a lower interest rate than a fixed-rate mortgage. But if your credit isn't in great shape, your rate will still be higher than what you could qualify for with a better credit score.\nCheck your credit score to find out where you stand, and get a copy of your credit reports from AnnualCreditReport.com to determine which areas you may need to address. If you're not in a hurry, take some time to work on improving your credit before you start the mortgage preapproval process. It can take time to build your credit, but doing so could save you thousands, if not tens of thousands, of dollars over the life of your mortgage loan. END
 TITLE: Prequalified vs. Preapproved: What’s the Difference? CONTENT: What Does Prequalified Mean?\n----------------------------\nPrequalification means the creditor has done at least a basic review of your creditworthiness to determine if you're likely to qualify for a loan or credit card. Consumers initiate this process when they submit a prequalification application for a loan or card.\nRequirements for prequalification can vary depending on the situation. It may involve sharing basic information about your financial situation, such as your annual income, monthly housing payment and savings. For some prequalifications, lenders will check your credit through a soft inquiry—the type of inquiry that doesn't impact your credit scores.\nOnce you're prequalified, you can choose to apply and undergo a complete review process. The review may require you to submit official documents, rather than estimates, and agree to a hard credit inquiry, which can impact your credit scores.\nGetting prequalified doesn't guarantee an approval. But if you're able to apply for prequalification with a soft inquiry (or no inquiry), it's generally a good idea. If you get denied at this stage, you'll know you can move on and avoid the hard inquiry. END
 TITLE: Prequalified vs. Preapproved: What’s the Difference? CONTENT: What Does It Mean to Be Preapproved?\n------------------------------------\nGetting preapproved may be a better indication that you'll get approved for a loan or card—but it depends on the process. For example, if you're preapproved for a credit card online, the card issuer may be using preapproval and prequalified to mean the same thing.\nAdditionally, you may have received preapproval offers for loans or credit cards by mail, phone or email. These prescreened offers generally mean you appeared on a credit reporting agency's list of consumers that meet a creditor's criteria, and have been sent a firm offer of credit as a result.\nIf you respond to the offer and apply, the creditor must offer you the same terms as in the mailing. But those terms may have a range, and you won't know your exact offer until you apply and agree to a hard inquiry.\nWhether you applied or received an unsolicited offer saying you're preapproved, there's still no guarantee you'll get approved—especially if factors like your income, collateral or credit history have recently changed.\nMortgage and car loan preapprovals, however, are a contrast to preapproval for other types of credit and can involve a fairly complex application and review process. You may need to submit tax returns, proof of income and bank statements and agree to a credit check. The mortgage or auto lender could take some time to review and verify these documents, and they may then offer you a loan preapproval letter that's good for several months. END
 TITLE: Prequalified vs. Preapproved: What’s the Difference? CONTENT: Do Preapproval and Prequalification Offers Impact Credit Score?\n---------------------------------------------------------------\nWith credit cards, neither prequalification nor preapproval offers will impact your credit scores because with either process, if there's a credit check, the credit check usually results in a soft inquiry. Auto loans and mortgages are different, however, and will typically result in a hard inquiry on your credit that may hurt your credit scores. Fortunately, if it does, it's often a small impact that only lasts for a few months.\nAlso keep in mind that if you're rate-shopping for an auto or home loan, credit scoring models will treat all hard inquiries as one if made in a 14-day period (some models allow up to 45 days). So assuming you shop your loans in a short period of time, your credit will suffer little, if any, damage. END
 TITLE: Prequalified vs. Preapproved: What’s the Difference? CONTENT: Can I Opt Out of Credit Card and Loan Offers?\n---------------------------------------------\nIf you're receiving prescreened credit or insurance offers, you can opt out for a five-year period or permanently by calling 888-567-8688 or visiting OptOutPrescreen.com. It can take up to 65 days for you to stop receiving these offers once you opt out.\nOpting out will stop offers sent based on information in your credit report, but it won't stop all forms of prescreened offers. For example, some companies send offers based on marketing lists or mass mailings to residents of certain areas. You may be able to opt out of those lists by directly contacting the company that sent you the offer. END
 TITLE: Prequalified vs. Preapproved: What’s the Difference? CONTENT: Rate Shop Without Hurting Your Credit\n-------------------------------------\nIf you're looking for a loan or credit card, getting prequalified or preapproved could be a smart first step. You'll know upfront whether you're likely to get approved or denied and can see your estimated rates and terms. You can also use prequalification tools, such as Experian CreditMatchTM, to compare and find the best offers based on your credit. END
 TITLE: How to Finance a Swimming Pool CONTENT: What to Consider Before Getting a Pool\n--------------------------------------\nWhen you pick a pool design, you'll have to make a handful of decisions that'll have you consider your backyard aesthetic and what you can afford. You can choose to go classic with chlorine, or opt for a saltwater swimming pool. An above-ground pool is likely the cheapest option with a cost between $700 and $3,600, while a built-in style costs tens of thousands to construct. If you want a custom build, expect a six-digit price tag.\nThe design of your pool not only affects how much you'll need to fork over upfront to build it, but also how much you'll pay over time to keep it clean and swimmable (more on maintenance costs later). Gather estimates from several contractors to get a grasp on all the possibilities and their price points. Securing multiple quotes will help ensure you build your pool paradise at a price you can afford. END
 TITLE: How to Finance a Swimming Pool CONTENT: Five Ways to Finance a Pool\n---------------------------\nNo matter what kind of pool you want, you don't need to fund it all at once to make your swimming pool dreams a reality. Let's take a look at the five best ways to finance a pool, each of which have their own pros and cons.\n1.  ### Credit Card\n    You may choose to charge your pool expenses on a credit card with a low annual percentage rate (APR) or, even better, find a card with a 0% APR intro offer. That way, you can spread out the bulk of your payments over months without incurring any interest. Plus, rewards credit cards can give you a return on your purchase in the form of points, travel miles or cash back. If you're applying for a new card, one with an introductory bonus for new cardholders can also help save you some money.\n    **What to watch out for**: High interest rates can drive up the original price of your pool if you don't pay off the full amount before the end of your 0% APR period. Using a credit card for a major purchase is unwise if you don't have a plan to pay it off quickly. A high credit card balance can also cause your credit utilization to skyrocket—potentially affecting your credit scores.\n2.  ### Personal Loan\n    Possibly branded \"pool loans,\" personal loans are offered by banks, credit unions and online lenders, sometimes even in collaboration with your pool company of choice. Like with a traditional credit card, you won't have to put your home or other property on the line for a personal loan. The borrowing process tends to be fast and simple compared with other financing options. Personal loan lenders include Upstart and OneMain Financial.\n    **What to watch out for**: You may find a personal loan's interest rates aren't worth the convenience. Compare costs of home-secured loans (next on our list) to the costs of personal loans from different lenders.\n3.  ### Home Equity Line of Credit (HELOC)\n    A HELOC is secured by the value of your home. You can use a HELOC to pay for your pool and be charged a lower interest rate than you can get from many credit cards and personal loans—only paying interest on the money you withdraw. Also, the interest on your HELOC may be tax-deductible if you use it to upgrade your living space (for example, by adding a pool).\n    **What to watch out for**: Unlike credit cards, HELOCs put your house on the line, which means it can be repossessed by the lender if you fail to repay your debt. Additionally, HELOCs typically have variable interest rates, so your monthly payments may vary. When the 10-year draw period on your HELOC ends, you could face high monthly payments on the remaining balance if you haven't already paid off your pool.\n4.  ### Home Equity Loan\n    As with a HELOC, a home equity loan lets you borrow against the value of your home. Instead of a line of credit, however, a home equity loan offers a lump sum of cash you can use to pay for your pool, usually with a fixed interest rate.\n    **What to watch out for**: Taking out a home equity loan has potentially steep closing costs and also uses your home as collateral.\n5.  ### Cash-Out Mortgage Refinancing\n    Depending on the amount of equity you have in your home, you may be able to get cash when you replace your current mortgage loan with a new one. When you refinance, you can secure lower interest rates on your new mortgage and cash out up to 80% of your home equity.\n    **What to watch out for**: As with a home equity loan, refinancing means going through the whole mortgage borrowing process all over again—forms, closing costs and all. You'll also most likely stretch out the timeline to pay off your mortgage, which could result in paying significantly more in interest.\nBefore you dive into any applications, check your credit score. A shining credit score could help you secure more favorable interest rates on your credit cards and loans. If your credit isn't perfect, take a few steps to clean it up. END
 TITLE: How to Finance a Swimming Pool CONTENT: How Much Does It Cost to Maintain a Pool?\n-----------------------------------------\nOnce you sort out your financing options, consider the cost of pool upkeep. This can vary depending on a few factors, but maintenance costs are unavoidable unless you want a nasty, green pool. Here are some of the ongoing costs you take on with a pool:\n*   **Maintenance**: Pools require regular care, including seasonal \"openings\" and \"closings\" depending on where you live. You can probably cover some pool basics yourself, like checking water chemistry or emptying skimmers, but other jobs require a pro—that is, unless you can expertly disassemble and reassemble a pool heater (please don't try).\n*   **Materials**: Your pool's construction will factor into how much you'll spend on upkeep over the years. For example, you can opt for vinyl lining to cut upfront costs, but it may require more attention than a fiberglass liner. On the other hand, replastering a concrete pool totals around $10,000, whereas a replacement for a vinyl-lined pool costs under $5,000.\n*   **Utilities**: Unsurprisingly, pools require a sizable amount of water. Filling and maintaining tens of thousands of gallons of water adds up on your water bill. As far as electricity, running your pool heater or pump can add an average annual $300 to your energy bill.\n*   **Repairs**: Inevitably, whether it be a tear in the lining or a hopelessly backed-up filter, your pool will eventually need some extra TLC. Repairs can cost anywhere from a few hundred dollars to several thousand.\nHomeAdvisor estimates pool owners shell out between $3,000 and $5,000 every year to keep their pools clean and operational, so take a close look at how much your desired pool will cost over time. END
 TITLE: How to Finance a Swimming Pool CONTENT: Ready to Dive In?\n-----------------\nNow that you know the ins and outs of pool financing, you can select the best options for your home and budget. Consider both short- and long-term costs attached to your backyard oasis before setting your plan in stone—you'll feel much more relaxed sitting poolside knowing how well you financed it. END
 TITLE: What Is a Personal Loan? CONTENT: What Is a Personal Loan Used For?\n---------------------------------\nPersonal loans—sometimes called debt consolidation loans, signature loans or unsecured loans—offer a lot of flexibility in how you can use them.\nIn most cases, personal loans are unsecured, which means you don't need to put up collateral to get approved. There are, however, secured personal loans, which require you to use a savings account or another asset as collateral in case you default.\nPersonal loans typically come with fixed or variable interest rates, as well as repayment terms that range from just a few months to up to seven years—though some can go longer.\nWith most lenders, you have a lot of leeway for how you can use your personal loan funds. That includes things like:\n*   Debt consolidation (especially for credit card debt)\n*   Medical bills\n*   Home repairs and renovations\n*   Repaying family or friends\n*   Wedding expenses\n*   Divorce costs\n*   Moving expenses\n*   Funeral costs\n*   Vacations\n*   Furniture or appliance purchases\n*   Small business expenses\n*   Holiday shopping\nKeep in mind, though, that some lenders may have restrictions on how you can use your money. Some may prohibit education-related expenses, for instance. Check with the lender beforehand to make sure you can use a personal loan for your intended purpose. END
 TITLE: What Is a Personal Loan? CONTENT: When Is a Personal Loan a Good Idea?\n------------------------------------\nWhile it's possible to use a personal loan for just about anything, that doesn't mean it's always wise to do so. In general, it's a good idea to use a personal loan when it can improve your financial situation or provide necessary funds. Examples include:\n*   **Debt consolidation**: If you have high interest credit card debt, you may be able to save money by paying it off with a lower interest personal loan. Even if you don't necessarily save money on interest, a personal loan can provide a structured repayment term, which can help if you're struggling to stay motivated in paying off your debt.\n*   **Home renovations**: If you want to make some improvements to your home, a personal loan may be a better choice than a home equity loan or line of credit because it doesn't come with the threat of losing your home if you default.\n*   **Emergency expenses**: In an ideal world, you'd have enough money set aside for emergencies. But life isn't always ideal, and if you lose your job, your car breaks down or a major home appliance needs to be repaired or replaced, a personal loan can provide some peace of mind at a stressful time.\n*   **Personal events**: Weddings, divorce and funerals can be expensive, and it's not always possible to save up for such a major life event. In these instances, a personal loan can provide much-needed funds at the right time.\nWhile it's possible to use a personal loan for things like vacations and expensive consumer goods, it's best to save up until you can pay for these expenses with cash (or charge them on a credit card to get the points and then pay them off immediately). END
 TITLE: What Is a Personal Loan? CONTENT: How to Compare Personal Loans\n-----------------------------\nJust as with any other financial product, it's important to shop around and compare several personal loan options before applying for one. Even if you get an offer from your primary bank or credit union, it's possible you could find a better deal elsewhere.\nHere are the different features to consider while you're comparing personal loans:\n*   **Interest rate**: A loan's interest rate represents the cost of borrowing money. The average personal loan interest rate is 9.41%, according to Experian data. However, your rate offers may be higher or lower based on your credit and financial situation.\n*   **Loan term**: Different lenders offer varying repayment terms, and how long you have to repay a debt impacts your monthly payment. If one offers you three years to repay a debt and another offers only two years, your monthly payment could be significantly higher with the second option—but you might also save on interest with the shorter-term loan.\n*   **Fees**: In addition to interest, some lenders charge fees that could increase your annual percentage rate (APR). Origination fees, for instance, are deducted from your loan funds before you receive them, and some lenders also charge late fees and prepayment fees if you pay off your loan early.\n*   **Funding time**: Some lenders offer next-day or even same-day funding, while others can take several days to deposit the funds into your checking account. Depending on how soon you need the money, consider these timelines.\n*   **Other features**: Not all lenders provide added features, but some may allow you to get a lower interest rate if you set up automatic payments or have an existing relationship with the bank. Others may offer forbearance options if you lose your job.\nMany personal lenders allow you to get prequalified with a rate offer before you officially apply. This process typically requires a soft credit check, which won't impact your credit score. This process can allow you to compare loan options side by side and pick the best fit for you.  \nHow to Qualify for a Personal Loan\n----------------------------------\nPersonal loans are available for most consumers across the credit spectrum, but there are some things you can do to improve your chances of getting approved at a favorable rate. Here are some factors lenders consider when you apply:\n*   **Credit score**: Your credit score is a snapshot of your overall credit history, and the higher it is, the better your chances of getting approved with a low interest rate. That said, there are personal loans for bad credit, so you're not completely out of luck if you don't have time to improve your credit before you apply.\n*   **Income**: Your ability to repay the debt is another major factor, and lenders will specifically consider your debt-to-income ratio—that's how much of your gross monthly income goes toward debt payments. A low ratio means you're more likely to be able to afford your loan payments because there aren't too many competing debts.\n*   **Credit report**: While your credit score is important, lenders will also check your credit report to make sure there aren't any negative items from the past that could affect their decision. Specifically, things like delinquent payments, collection accounts, bankruptcy and foreclosure could act as a red flag and make it difficult to get approved.\nIf your credit and income situation isn't where you want it to be for a personal loan, work to improve it before you apply.\nStart by checking your credit report to pinpoint areas you need to address, and also work on paying down debt to reduce your debt-to-income ratio. This process can take time, but it can save you a significant amount of money if it can help you qualify for a lower interest rate.  \nDo Your Homework\n----------------\nA personal loan can help you cover necessary expenses and improve your debt situation. But it's important to consider both the benefits and drawbacks before you apply. It's also essential that you take the time to shop around and compare different options before applying for one.\nAs you research lenders, check out Experian CreditMatch™, which can provide loan offers from multiple lenders in one place with just a few details from you. This can help you save time as you research and narrow down your list of potential lenders. END
 TITLE: What Is a Personal Loan? CONTENT: How to Qualify for a Personal Loan\n----------------------------------\nPersonal loans are available for most consumers across the credit spectrum, but there are some things you can do to improve your chances of getting approved at a favorable rate. Here are some factors lenders consider when you apply:\n*   **Credit score**: Your credit score is a snapshot of your overall credit history, and the higher it is, the better your chances of getting approved with a low interest rate. That said, there are personal loans for bad credit, so you're not completely out of luck if you don't have time to improve your credit before you apply.\n*   **Income**: Your ability to repay the debt is another major factor, and lenders will specifically consider your debt-to-income ratio—that's how much of your gross monthly income goes toward debt payments. A low ratio means you're more likely to be able to afford your loan payments because there aren't too many competing debts.\n*   **Credit report**: While your credit score is important, lenders will also check your credit report to make sure there aren't any negative items from the past that could affect their decision. Specifically, things like delinquent payments, collection accounts, bankruptcy and foreclosure could act as a red flag and make it difficult to get approved.\nIf your credit and income situation isn't where you want it to be for a personal loan, work to improve it before you apply.\nStart by checking your credit report to pinpoint areas you need to address, and also work on paying down debt to reduce your debt-to-income ratio. This process can take time, but it can save you a significant amount of money if it can help you qualify for a lower interest rate. END
 TITLE: What Is a Personal Loan? CONTENT: Do Your Homework\n----------------\nA personal loan can help you cover necessary expenses and improve your debt situation. But it's important to consider both the benefits and drawbacks before you apply. It's also essential that you take the time to shop around and compare different options before applying for one.\nAs you research lenders, check out Experian CreditMatch™, which can provide loan offers from multiple lenders in one place with just a few details from you. This can help you save time as you research and narrow down your list of potential lenders. END
 TITLE: What Can a Personal Loan Be Used For? CONTENT: How Personal Loans Work\n-----------------------\nPersonal loans are credit products, and many banks, credit unions and online lenders offer them. These loans are typically unsecured, which means you don't have to provide any collateral. All come with terms, including:\n*   The number of months or years you have to repay the loan\n*   The interest rate, which is what the lender charges you to finance the loan\n*   The monthly payment\nSome loans come with origination fees, which might be anywhere from 1% to 8% of the loan amount. The fee for a $5,000 loan, for example, could range from $50 to $400. The fees will be tacked on to the principal, and interest will be calculated on the total.\nOnce you apply for a personal loan, the lender will check your credit history and credit scores, and analyze your cash flow to determine whether you can handle the payments. If you're approved, the money may be available to you within minutes or days, depending on the lender.\n> Find the best personal loans in Experian CreditMatch™. END
 TITLE: What Can a Personal Loan Be Used For? CONTENT: You can use your loan funds for a variety of things, and some are more financially healthy than others. Among the vast array of options:\n**Debt consolidation**: If your current batch of creditors are charging you a high interest rate, a personal loan to consolidate the old debts under one lower rate can work to your advantage, especially if it doesn't have an origination fee. One caveat, though: If you're consolidating credit card debt, those accounts can be used again. Those credit lines can be tempting, so make sure you resolve not to use your cards while you pay off your loan—otherwise you could be back in the same situation, but with an even higher pile of debt.\n**Medical bills**: Personal loans can help you when you find yourself with mounting medical bills. Because these liabilities can get very high, though, try to negotiate the bills down first. Your health care provider may give you a discount. If not, you may be able to pay in installments at no additional cost so you don't have to borrow money and thus pay interest. If these strategies don't work, a personal loan may be what you need to pay off that debt.\n**Student debt**: Although you can repay a student loan with a personal loan, it's usually not wise. Student loan interest rates are usually lower than other loans, and the payments on a new loan will probably be higher. Also, you'll forfeit the opportunity to obtain deferments and forbearances, flexible payment arrangements, and the potential to have all or some of your debt forgiven if you pay off your student loan with a personal loan.\n**Collection agency debt**: If collectors are breathing down your neck, satisfying the bad debts with a personal loan can make sense. Not only will the calls cease, but your credit rating may start to improve. The problem? Many collectors don't charge interest, but lenders do. And if your credit rating is low because of the collection activity, the interest rate on your personal loan will probably be high.\n**Tax debt**: Owing the IRS can be scary and expensive. Deleting the debt with a personal loan is an option, but be sure to find out if an IRS installment agreement is better first. Consider the interest rate and fees on your personal loan versus interest and penalties you'd accrue as you pay your installment agreement to determine whether this is a good idea.\n**Necessary home repairs**: Borrowing money to fix something crucial in your home (such as taking care of termite damage or a damaged roof) is reasonable and prudent. Installing custom stained glass windows? Not so much. Don't conflate need with desire. Also, check to see if repair costs can be covered by your homeowners insurance. After all, that's why you pay for it.\n**Repaying family or friends**: If you're indebted to someone who has helped you out with a loan but now you can't pay them back, your relationship is at risk. A personal loan can come to the rescue, but communicate with that person first. Maybe you can work out new payment arrangements that will be mutually satisfactory. While a personal loan may help you feel less guilt toward someone who has helped you financially, transferring this debt to a personal loan could end up costing you more in the long run.\n**Helping a loved one**: Conversely, when a destitute friend or family member approaches you for financial assistance, you may be so moved by their plight to take out a loan to help. If you're willing to assume the costs and can easily meet the payments, that's your prerogative, but think long and hard. If you fall behind, you'll be the one needing assistance.\n**Wedding costs**: A wedding can be wildly expensive. Without savings to pay for your big day, a personal loan may seem like a great idea. Just review the pros and cons first. The interest rate may be lower than if you used a credit card, and a well-managed loan can boost your credit rating, but you may be tempted to overspend. And do you really want to start your marriage in the red?\n**Divorce**: On the flip side, many marriages don't work out the way people hope. The cost to split can exceed the money in your bank account. According to a study by legal publisher Nolo, the average divorce costs around $15,500. If you don't have enough to cover the lawyers' fees and court costs, a personal loan can come in handy.\n**Vacation**: Can you pay for a fabulous vacation with a personal loan? Yes. Should you? Probably not. Traveling is wonderful, but it's best to use a portion of your paycheck or save for the trip instead. Then you can use a credit card for purchases and pay the balance in full, so you can get your rewards while not paying financing fees.\n**Vehicle financing**: Because car loans are secured by the vehicle, the interest rates tend to be lower than those on unsecured personal loans. Therefore, unless you can score an unusually low rate, an auto loan is probably preferable. The only alluring aspect of using a personal loan is that it doesn't require a downpayment, and auto loans typically do.\n**Expensive consumer goods**: Computers, mattresses, jewelry, appliances … There is an endless number of things you can buy. If you don't have the cash upfront, the funds from a personal loan can bring them home. To know whether it's a wise thing to go into debt for, ask yourself if you really need the item now. If you don't, start socking cash away for it instead.\n**Moving expenses**: The cost to have professional movers box up your things and transport them to your new abode can be thousands of dollars. If you can't do it yourself (or assemble a group of friends who can pitch in), a personal loan can come to your rescue.\n**Funeral costs**: Taking out a personal loan for a loved one's funeral is a personal choice, but you should consider your ability to repay the loan before making this decision.\n**Pets**: When you bring an animal into your life, you're assuming a serious responsibility. Major veterinary bills could be in your future, and a personal loan can help you pay for them when you're in a pinch. What's not recommended: purchasing a pet with the loan. You should be able to afford the animal, and having to go into debt to acquire a pet is a sign that you can't.\n**A small business**: Personal loans are not designed for business purposes, though some entrepreneurs try to use the funds for launching or operating costs. Small business loans or credit lines are the more appropriate products, so if you're tempted to augment those funding sources with a personal loan, first seek advice from a professional who can guide you to the right choice.\n**The holidays**: You want to spread joy, give generous gifts and celebrate the season in style, so why not take out a personal loan for it all? Because it's economically foolhardy. Added fees and interest increase the cost of all those purchases, and the monthly payments will erode the amount of money you have for essential bills.\n> Find the best personal loans in Experian CreditMatch™. END
 TITLE: What Can a Personal Loan Be Used For? CONTENT: What Credit Score Do I Need for a Personal Loan?\n------------------------------------------------\nAs with any credit product, personal loans with the lowest interest rates are available to people with the highest credit scores. Check your FICO® Score☉ before applying. If it's in the 670-to-850 range, the lender will consider your credit rating as good to excellent. In that case, the least expensive personal loan options will be open to you.\nMany lenders do offer personal loans to people with lower credit scores, but the interest rates will rise as your scores dip. The difference in the loan's ultimate cost can be dramatic. For example, if you take out a loan of $5,000 and it has a repayment term of three years:\n*   A rate of 5% will cost you $395 in interest\n*   A rate of 15% will cost you $1,240 in interest\n*   A rate of 25% will cost you $2,157 in interest\nKeep in mind that individual lenders set their own interest rates, so you may get a better or worse rate with the same credit score. Review many lenders' rates before deciding on one. END
 TITLE: What Can a Personal Loan Be Used For? CONTENT: Weigh the Pros and Cons\n-----------------------\nClearly, personal loans can be both beneficial and problematic, so always weigh the pros and cons of borrowing money prior to submitting an application. Will it solve your troubles, enhance your life and create a better financial picture? Can you easily afford the monthly payments and are the fees and financing costs reasonable? If all your answers are affirmative, taking out a personal loan may be a positive decision. END
 TITLE: How to Consolidate Your Credit Card Debt CONTENT: How Debt Consolidation Works\n----------------------------\nDebt consolidation occurs when you use a new loan or credit card to pay off existing debt. While the term \"consolidate\" implies merging multiple credit accounts into one, you can also consolidate a balance from just one credit card.\nConsolidating debt works best when you can score a lower interest rate on the new loan or credit card than what you're currently paying. With a lower rate, you can save money and potentially pay off your debt faster.\nIf you have multiple debt accounts you want to consolidate, the process can also simplify repayment by giving you just one monthly payment to keep track of. Also, if you have credit cards, which don't have set repayment terms, a personal loan's set repayment time frame could give you the structure you need to stick with the payoff plan.\nFor example, let's say you have a credit card with a $7,000 balance and a 20% annual percentage rate (APR). If you were to set a goal to pay off the debt over three years, you'd have a monthly payment of roughly $260, and you'd pay $2,365 in interest over that time.\nBut if you were to apply for a three-year personal loan with a 12% interest rate, your monthly payment would be $233, and you'd pay only $1,370 in interest—saving you $995.\nHowever, debt consolidation isn't for everyone, so it's important to consider your situation and options before you apply for a new credit card or consolidation loan. END
 TITLE: How to Consolidate Your Credit Card Debt CONTENT: Should I Consolidate My Credit Card Debt?\n-----------------------------------------\nIf you're struggling with the burden of your credit card debt, here are a few things to consider to determine if consolidating your debt is a good fit for you. END
 TITLE: How to Consolidate Your Credit Card Debt CONTENT: There are several ways to consolidate your credit card debt, and each comes with its own issues and pros and cons you should consider:\n1.  Use a balance transfer credit card\n2.  Apply for a personal loan\n3.  Tap your home equity\n4.  Consider a debt management plan\nBefore you choose one of these options, consider all of the costs associated with each one, including upfront fees and potential long-term drawbacks. END
 TITLE: How to Consolidate Your Credit Card Debt CONTENT: Look Into Strategies to Pay Off Credit Card Debt\n------------------------------------------------\nOne alternative to consolidating your credit card debt is to employ the debt snowball or debt avalanche method to more quickly pay down your balances.\nWith the debt snowball method, you target the card with the lowest balance and make extra payments toward that account, while paying just the minimum on all other cards. Once you've paid off that balance, move on to the next-lowest balance and add what you were paying on the first card to pay it off even faster—hence the \"snowball\" effect. You'll continue this practice until you've paid off all of your credit card balances.\nThe debt avalanche method works similarly to the debt snowball method. The only difference is that you'll focus on the cards with the highest interest rates first instead of the lowest balances.\nThe debt snowball method may be a better option if you're struggling to get motivated to pay off your debt. Paying off small balances quickly can give you small wins early, making it easier to build momentum. The debt avalanche method, on the other hand, can save you more money because you're getting rid of debts with higher interest first.\nDepending on your debt situation, though, the difference in savings may not be large. Use a debt snowball calculator to determine which is the better option for you. END
 TITLE: How to Consolidate Your Credit Card Debt CONTENT: Above All Things, Focus on Your Goal\n------------------------------------\nDebt consolidation can come in many forms, and some options may be better than others for your situation. The most important thing is that you make progress on eliminating your debt. The faster you can pay down your credit card balances, the sooner you'll have more cash flow to spend how you want.\nAs you work on consolidating and paying down your credit card debt, continue to check your credit score regularly to make sure your hard work is paying off. END
 TITLE: If I Get Approved for a Personal Loan, Do I Need to Accept It? CONTENT: How Do I Apply for a Personal Loan?\n-----------------------------------\nGetting a personal loan is a relatively easy process. You can apply for one with a bank, credit union or an online lender. Depending on which institution you're working with, you may be able to get preapproved before you officially apply.\nThe preapproval process includes sharing a little bit about yourself and your partial or full Social Security number, and the lender will run a soft credit check and share one or more quotes for rates and other terms. This process won't affect your credit, so it's a good idea to look for lenders that offer it.\nAfter you've been preapproved and you like what you see—or if the lender doesn't offer preapproval—you'll submit an official application. During this part of the process, you'll typically need to share more information, including your:\n*   Social Security number\n*   Address\n*   Proof of income and employment\n*   Government-issued photo ID\n*   Bank information\n*   Purpose for the loan\n*   How much you want to borrow\nOnce you submit the application, the lender will review the information you've shared and check your credit reports and score. It may also calculate your debt-to-income (DTI) ratio—your monthly debt payments divided by your gross monthly income—to see whether you can afford to take on more debt right now.\nIf your application has been approved, the lender will contact you with the terms and typically allow you a certain period to determine whether you want to accept.\nInstead of going with your own bank or credit union, or picking the first offer that comes your way, it's essential that you shop around and compare several lenders, so you may need to go through this process more than once.\nWhile that may sound redundant, different lenders have different criteria for how they determine rates and judge applicants. Checking terms with multiple lenders gives you the chance to make sure you get the most favorable terms you qualify for. END
 TITLE: If I Get Approved for a Personal Loan, Do I Need to Accept It? CONTENT: Do I Have to Take the Loan I've Applied For?\n--------------------------------------------\nIf a lender has approved your application for a personal loan, you're not required to take it. This is an important distinction from credit cards, where your account is opened immediately upon approval.\nBut there are a couple of things to consider before you start submitting applications all over the place. For starters, some personal lenders may charge a nonrefundable application fee, which you won't get back if you decline the loan offer.\nMost major lenders don't charge this fee, though some of them opt for an origination fee that gets deducted from your loan disbursement if you accept. So if you come across one, it may be best to avoid applying unless you're confident that's the lender you're going to choose.\nThe second thing to consider is that almost every time you submit an official application for credit, it will trigger a hard inquiry on your credit report. Unlike a soft credit check, a hard credit check will affect your credit scores, usually knocking a few points off with each inquiry.\nThe more you apply, though, the negative effect of the hard inquiries can be compounded and make it more difficult to get approved. What's more, each hard inquiry stays on your credit report for two years. END
 TITLE: If I Get Approved for a Personal Loan, Do I Need to Accept It? CONTENT: What to Consider Before Applying for a Personal Loan\n----------------------------------------------------\nPersonal loans are a big financial commitment and can often take years to repay, so it's important to understand both the benefits and the drawbacks before you apply for one.\n### Pros of Getting a Personal Loan\nThere are a few situations where a personal loan may be a better option than other available credit options, and here's why:\n*   **They can help you eliminate credit card debt.** If you can qualify for a personal loan with a lower interest rate than what you're paying on your credit cards, the loan can help you consolidate your credit card debt and save money as you pay it off. Moving your credit card debt over to a personal loan will also reduce your credit utilization rate, which can help improve your credit score.\n*   **They're often unsecured.** Many personal loans don't require collateral to get approved. If you're doing home improvements, for instance, a home equity loan or line of credit may be cheaper than a personal loan, but you risk losing your home if you can't repay the debt.\n*   **They can fund quickly.** If you need money fast to cover emergency expenses, some personal lenders can provide funds as early as the next day, or at least within the week.\n### Cons of Getting a Personal Loan\nWhile there are some clear advantages to using a personal loan in some situations, it's not always the best option available. Here are some reasons why:\n*   **They can be expensive.** It's possible to find personal loans with interest rates in the single digits, but the average rate on a two-year personal loan is 10.63%, according to the Federal Reserve. If you need a longer repayment term or your credit is less than perfect, you may end up with a rate that's much higher. Some of the most popular personal lenders charge rates upwards of 30% with some borrowers. In addition to a high interest rate, you may also be on the hook for an origination fee, which can be as high as 8% among top lenders.\n*   **They can have short repayment terms.** Depending on the lender you choose, you may only have a few years to repay the debt you've incurred. If you're looking to fund a large purchase, such as a new car or a home improvement project, a short repayment term could make the monthly payments unaffordable.\n*   **They may be unnecessary.** With most personal loans, you can use your funds for just about anything. But just because you can take out a personal loan for a vacation, college costs or a big-ticket item you don't need, it doesn't mean you should. In situations like these, it may be a better financial decision to save up for the purchase or use a different type of loan, such as student loans, that may be a better fit. END
 TITLE: If I Get Approved for a Personal Loan, Do I Need to Accept It? CONTENT: How a Personal Loan Can Affect Your Credit\n------------------------------------------\nAs mentioned before, applying for a personal loan can result in a hard inquiry on your credit report, which can temporarily drop your credit score by a few points. Also, taking on the new monthly payment will increase your debt-to-income ratio, which can affect your chances of getting approved for credit in the future.\nAnd, of course, missing payments or defaulting on a personal loan can have a significant negative impact on your credit score.\nThere are, however, some potentially positive effects a personal loan can have on your credit. For starters, taking out a loan and making payments on time and in full each month can establish a positive payment history, which is the most significant factor in your credit score.\nAlso, a personal loan can improve your credit mix—the different types of credit you have—and reduce your credit utilization rate if you're using it to pay down credit card debt.\nAs you consider whether a personal loan is right for you, think about how it can impact your credit for better and for worse. END
 TITLE: If I Get Approved for a Personal Loan, Do I Need to Accept It? CONTENT: Check Your Credit Score Before You Apply\n----------------------------------------\nHaving a great credit score can improve your chances of getting approved for a personal loan with favorable terms. If you're not sure where your credit stands, check your credit score from Experian for free to see. If it's considered good or excellent—typically a FICO® Score☉ of 670 or higher—you'll have better approval odds.\nIf it's less, though, or if you want to maximize your chances of scoring a low interest rate, consider working on improving your credit before you apply for a personal loan.\nAlso, to help simplify the shopping around part of the process, consider using a tool like Experian CreditMatch™, which can provide quotes from multiple lenders in one place based on your credit score. END
 TITLE: What Is a Soft Inquiry? CONTENT: How Does a Soft Inquiry Work?\n-----------------------------\nIf you submit an application for new credit, such as a loan or credit card, the loan or card issuer will typically request a hard inquiry to check your credit. Hard inquiries will stay on your credit report for two years, but their impact on your credit scores is typically minimal and will only last a few months.\nBy contrast, a soft inquiry may occur if someone checks your credit report but you didn't submit a new application for credit. Soft inquiries aren't an indicator of greater risk and thus don't impact your credit scores.\nFor example, a soft inquiry occurs when:\n*   You check your own credit\n*   One of your current creditors checks your credit\n*   You apply for a soft-pull preapproval with a creditor\n*   A company checks your credit to see if you qualify for preapproval offers\nSome applications can result in either a hard or soft inquiry, including opening a bank account and renting an apartment. In these situations, you could ask the company whether it will use a hard or soft pull to check your credit. END
 TITLE: What Is a Soft Inquiry? CONTENT: Can You See Soft Inquiries on Your Credit Report?\n-------------------------------------------------\nYou can view the soft inquiries on your credit reports. If you want to get copies of your credit report, you can request one free copy from each major credit bureau (Experian, Equifax and TransUnion) every 12 months on AnnualCreditReport.com. You can also check your Experian credit report monthly for free on Experian.com.\nSoft inquiries may be in their own section on your credit report. It might look similar to this: END
 TITLE: What Is a Soft Inquiry? CONTENT: Also, keep in mind that your three reports could have different inquiries, as an inquiry is only added to the credit report that was checked. For example, if you check your Experian credit report, the soft inquiry won't be added to your Equifax or TransUnion credit reports. END
 TITLE: What Is a Soft Inquiry? CONTENT: How Do Soft Inquiries Impact Credit Scores?\n-------------------------------------------\nCredit scoring models generate your credit score by analyzing the information in your credit report. Soft inquiries don't have any impact on your credit scores.\nHard inquiries may remain in your credit reports for about two years and they can impact your credit scores. But the impact is typically small, and credit scores tend to rebound within a few months if no new negative information gets added to your credit report. Scoring models usually only consider hard inquiries from the previous 12 months when calculating your scores.\nMultiple recent hard inquiries can do more damage to your credit scores. However, credit scoring models often combine (or \"deduplicate\") multiple inquiries from a 14- to 45-day period—depending on the type of credit score—to avoid punishing consumers who are rate shopping. END
 TITLE: What Is a Soft Inquiry? CONTENT: Should You Worry About Inquiries?\n---------------------------------\nIn general, hard inquiries only play a minor role in your score and fear of a hard inquiry shouldn't keep you from applying for credit when you need to open a new account.\nSoft inquiries are even less worrisome because you could have dozens, or even hundreds, of soft inquiries in your credit reports—and they still won't impact your credit scores. END
 TITLE: How Does a Personal Loan Affect Your Credit Score? CONTENT: What Is a Personal Loan?\n------------------------\nUnlike auto or home mortgage loans, which are designed for specific purposes, personal loans are consumer loans that can be used for just about anything you want. For instance, you might take out a personal loan to help you start a new business, pay your medical bills or finance an expensive but urgent home repair (such as a new roof in the middle of the rainy season).\nBecause personal loans generally have lower interest rates than credit cards, many people use them to pay off credit card debt or other high interest debt. (These loans are sometimes advertised as debt consolidation loans.) However, since personal loans are unsecured—meaning they don't require you to put up any collateral—their interest rates are higher than those for secured loans such as auto loans or home mortgages.\nYou can get a personal loan from a bank, credit union or online lender. The loan terms you qualify for will vary depending on your credit score, the amount you're seeking and other factors. As long as you have a good credit score, you can often get approved for a personal loan within days. Find out what else you should know before you apply for a personal loan.\n> Find the best personal loans in Experian CreditMatch™. END
 TITLE: How Does a Personal Loan Affect Your Credit Score? CONTENT: Depending on how you use them, personal loans can help to improve your credit score in several ways.\n*   **Contributing to a better credit mix**: Having a variety of different types of credit helps to boost your credit score. A personal loan is an installment loan (meaning you pay it off in regular monthly installments). If most of your credit is revolving credit, such as credit cards, a personal loan can enhance your credit mix.\n*   **Helping you build a payment history**: Making your personal loan payments on time helps to establish a positive payment history, which can increase your credit score. (The key is to be sure you can make the loan payments in full and on time every month.)\n*   **Reducing your credit utilization ratio**: Because it's an installment loan, a personal loan doesn't factor into your credit utilization ratio, which measures how much of your available revolving credit you're using. Using a personal loan to pay off revolving credit, such as credit card debt, can help you improve your credit scores by replacing revolving debt (which factors into your credit utilization ratio) with an installment loan (which doesn't). END
 TITLE: How Does a Personal Loan Affect Your Credit Score? CONTENT: How Personal Loans Can Hurt Your Credit\n---------------------------------------\nReady to fill out that personal loan application? Not so fast. Personal loans also have some downsides you should be aware of.\n*   **Creating an inquiry on your credit report**: When you apply for any type of credit, including a personal loan, lenders will do a credit check on you. This results in a hard inquiry on your credit report, which negatively affects your credit score. The dip from a single hard inquiry lasts only a few months; however, too many hard inquiries can do more damage to your credit score. If you're applying for personal loans from multiple lenders to get the best terms, consolidate your applications into the span of a week or two to minimize their negative impact on your credit score, since credit scoring models view this as rate shopping and don't ding your credit for it.\n*   **Getting you deeper in debt**: Taking out a new personal loan means taking on more debt. If you use the personal loan to pay off higher interest debt, it's important to make sure you also change the habits that got you into debt in the first place. For instance, if you use a personal loan to pay off a maxed-out credit card, and then start charging more than you can afford on that card again, you could easily end up with a maxed-out credit card ... _plus_ a personal loan to pay off.\n*   **Additional fees**: In addition to the interest you'll pay on a personal loan, don't forget about loan costs such as origination fees or late fees. Make sure you understand all of the fees involved before you apply. If necessary, consider borrowing enough to cover the fees. END
 TITLE: How Does a Personal Loan Affect Your Credit Score? CONTENT: When to Consider Taking Out a Personal Loan\n-------------------------------------------\nNow that you know the pros and cons of personal loans, when might it make sense to apply for one? Here are some scenarios where a personal loan could be your best option.\n*   **You need to pay off high interest debt.** Since they have lower interest rates than credit cards, personal loans can help you get out of credit card debt at a lower cost.\n*   **You have a costly emergency.** Sure, you could put that new roof on a credit card—but then you're taking on high interest debt that will grow over time. When an expensive emergency strikes, a personal loan with its lower interest rate and fixed payments can be a better way to go.\n*   **You want to remodel your home.** Unlike a home equity line of credit (HELOC), personal loans don't require using your home as collateral. This allows you to finance remodeling without putting your home at risk.\nSome people take out personal loans to finance weddings, vacations and other big events. Whether or not this makes sense for you depends on your personal finances. If you know you'll have the money to make the loan payment every month, a personal loan could be the answer you're looking for. But if you're already living on a tight budget, taking out a personal loan to finance a trip to Fiji could get you in trouble. If you can't make the payments, your credit score will suffer. Instead, start socking away money to save for the trip of your dreams rather than paying extra in interest to fund it. Find out more about when to take out a personal loan.\n> Find the best personal loans in Experian CreditMatch™.\nPersonal loans can be a useful tool for improving your credit score, reducing credit card debt or covering unexpected expenses. However, they also come with costs and risks that you need to consider before you apply. Carefully weigh the pros and cons of personal loans and take an honest look at your own financial behavior to decide if a personal loan is right for you. END
 TITLE: What Is a Hard Inquiry and How Does It Affect Credit? CONTENT: What Are Inquiries on Your Credit Report?\n-----------------------------------------\nAnytime you seek credit from a lender or credit card issuer, that organization will want to see your track record as a borrower. Your past and current financial behavior, such as payment history and balances on loans and credit cards, helps lenders decide whether to work with you.\nLenders could interpret several missed bill payments, for instance, as a sign that you're likely to miss a payment again in the future. That could lead to you getting denied for a loan or being charged higher interest rates. To get the information it needs, the lender must request your credit file from the credit bureaus, and that results in a hard inquiry. That inquiry, in turn, will appear on your credit report.\nIn contrast, a soft inquiry occurs when you check your own credit, for instance, or when a company wishes to prequalify you for a loan offer, but you haven't yet submitted a full application. Soft inquiries do not impact your credit score. END
 TITLE: What Is a Hard Inquiry and How Does It Affect Credit? CONTENT: How Do Hard Inquiries Affect Your Credit Score?\n-----------------------------------------------\nHard inquiries have a negative impact on your credit score, in the short term at least. While a hard inquiry will stay on your credit report for two years, it will usually only impact your credit for a few months. Too many hard inquiries in a short time could make it look like you're seeking loans and credit cards that you may not be able to pay back.\nThere are many factors that contribute to your credit score, however. The most important are payment history—which accounts for 35% of your FICO® Score☉ —and credit utilization, or the amount of available credit you're using, which makes up 30%. Applications for new credit account for just 10% of your score, according to FICO, so a hard inquiry won't necessarily make a major impact.\nThere are times when a hard inquiry is unavoidable, such as when you're applying for a mortgage or an auto loan. In these cases the credit bureaus recognize that you might submit applications to multiple lenders for one loan to compare rates.\nAs a result, you generally won't be penalized for several inquiries appearing on your credit report for one loan type if they're made within a 14- to 45-day period. On the other hand, applying for multiple credit cards and a personal loan in one week may be a red flag that you're seeking credit you can't afford. These will not be treated as one inquiry. END
 TITLE: What Is a Hard Inquiry and How Does It Affect Credit? CONTENT: How Long Does a Hard Inquiry Last?\n----------------------------------\nA hard inquiry will stay on your credit report for two years. While lenders can see all inquiries made during that time, the inquiries only directly affect your credit score for one year at most.\nThat means that when you apply for a credit card, for instance, you may initially see a small drop in your credit score. Over time, that impact will diminish, and with responsible credit behavior, you'll recover from the drop fairly quickly.\nTo keep your score strong, apply only for the credit you truly need. If you plan to apply for a major new credit product, like a mortgage, in the next several months, experts say you should avoid applications for other new credit to keep your score as high as possible. END
 TITLE: What Is a Hard Inquiry and How Does It Affect Credit? CONTENT: The Bottom Line\n---------------\nHard inquiries are an inevitable part of your credit file, but they should occur sparingly—and strategically, when you're comparing rates on financial products.\nTo keep an eye on hard inquiries' impact on your credit, monitor your credit score regularly. Many banks and lenders offer free score monitoring to customers; resources like Experian's free credit score tool provide access to your FICO® Score too.\nIn addition, check your credit report regularly to make sure all of the hard inquiries included are ones you've made. If you see any inquiries you don't recognize, you can dispute these errors with each of the credit bureaus. As an attentive consumer, you can make sure hard inquiries affect your score as little as possible, letting you access the financial products that can help you achieve your goals. END
 TITLE: What Is the Best Credit Utilization Ratio? CONTENT: How Much Credit Should I Use?\n-----------------------------\nIf you're focused on having excellent credit scores, a credit utilization ratio in the single digits is best. So, for example, if your credit limits across all of your credit cards add up to $10,000, keeping your total credit card usage under $1,000 will be best for your scores. If you need to occasionally use more credit to cover your bills or pay for an emergency, however, that's not necessarily bad for your credit in the long run—as long as you pay down the balance as quickly as possible.\nCredit utilization is an important credit scoring factor across all the various credit scoring models, but most credit scores only consider the current balances and credit limits on your credit report—it's a snapshot of where you stand when your score is calculated. (If you're unsure about the math, here's a closer look at how to calculate credit card utilization.)\nHaving a high utilization ratio one month may hurt your score. But once you pay down your balance and your card issuer sends an updated balance to the credit bureaus, your credit utilization goes down as well. As a result, you could quickly see an improvement in your credit scores.\nIt's also important to understand that credit card companies generally report your account balance around the end of your billing period. As a result, you could have a high utilization ratio even if you pay your bill in full, because the bill usually isn't due until around 21 to 25 days after you receive it.\nIf you frequently use your credit card to earn rewards or for the purchase protections it offers, you could pay down your balance during the billing period instead of waiting until just before the due date. Your card company will then report the lower current balance to the credit bureaus, which can lead to a lower utilization ratio and better scores. END
 TITLE: What Is the Best Credit Utilization Ratio? CONTENT: How to Lower Your Credit Utilization Rate\n-----------------------------------------\nYour credit utilization ratio is calculated using your credit limits and current balances, which means you can lower your utilization ratio by increasing your available credit or lowering your reported balance. END
 TITLE: What Is the Best Credit Utilization Ratio? CONTENT: Check and Monitor Your Credit and Utilization\n---------------------------------------------\nYou can calculate your credit utilization by comparing the current balances and credit limits for revolving accounts on your credit report. Additionally, when you check your credit report with Experian (which you can do for free), your credit utilization ratio will automatically be calculated and displayed. You can also look at each of your accounts to see their current individual utilization ratio. Both overall utilization and individual account utilization are considered in your credit score calculation. END
 TITLE: How to Apply for a Credit Card With Bad Credit CONTENT: What to Do Before You Apply for a Credit Card\n---------------------------------------------\nYou can start by checking your FICO® Score☉ for free with Experian. It's a good first step because submitting a credit card application can lead to a hard inquiry, which could lower your credit score slightly. With this in mind, you might not want to submit an application unless you're fairly confident you'll get approved. But there are ways to find credit cards that are a good fit without hurting your credit score.\nIf you have a bad score, such as a FICO® Score below 580, one option is to look for preapproved credit card offers. You might receive these in the mail or from your current financial institutions. If you've gotten these offers, it's because you've been prescreened and meet the card issuer's requirements to extend a firm offer of credit.\nCredit card issuers might also let you request a credit card prequalification. Don't be thrown off if the website says preapproval rather than prequalification—some card issuers use the two terms interchangeably.\nWhen you submit a prequalification, the card issuer reviews your basic information and may invite you to apply for certain cards. You may be presented with several card offers, but if you don't get prequalified, you might want to look for options from other card issuers.\nBoth credit card preapprovals and prequalifications result in a soft credit inquiry, which won't hurt your credit scores. Neither one is a guarantee of approval; however, if your creditworthiness hasn't gotten worse since you were preapproved or prequalified, there's a good chance you can get the card.\nPreapprovals and prequalifications aside (they're not always an option), you could focus on credit cards that are generally available to people with low credit scores. END
 TITLE: How to Apply for a Credit Card With Bad Credit CONTENT: What Type of Credit Card Can You Get With Bad Credit?\n-----------------------------------------------------\nSecured and subprime credit cards, tailored to those who have little credit history or are working to rebuild their credit from past mishaps, could be your best option. They work in similar ways, and there are many cards to choose from within each category. END
 TITLE: How to Apply for a Credit Card With Bad Credit CONTENT: How to Improve Your Credit Before Applying for a Credit Card\n------------------------------------------------------------\nImproving your credit score can increase your chances of getting approved for a new credit card. But your next steps can depend on why you have bad credit.\nIf you're behind on bills, you may want to focus on bringing past-due accounts current and settling or paying off collection accounts. You could even look into working with a credit counselor to get an outside perspective on your finances.\nOr, perhaps you have bad credit due to previous late payments, collection accounts or filing bankruptcy. Patience can be important here, as these negative items will stay on your credit report for seven years or possibly longer in the case of bankruptcy. The good news: The impact of negative items decreases over time.\nIn either case, you can commit to improving your credit by making on-time debt payments that add positive information to your credit history and reducing balances on revolving accounts, such as credit cards. Paying those down could help your scores by lowering your credit utilization rate. Payment history and credit utilization are the most important factors in calculating your credit scores, so these two steps could go a long way toward helping you rebuild your credit.\nIf you don't have any open loans, a credit-builder loan is one option to help you build credit. These loans are often offered by credit unions and smaller community banks. END
 TITLE: What’s the Average Length of a Car Loan? CONTENT: Average New-Car Loan Lengths Increase\n-------------------------------------\nThe latest Experian State of the Auto Finance Market report found the average term for new-car loans—the number of months required to repay the loans—increased by more than two months (2.37 months) to nearly 72 months overall, from the second quarter (Q2) of 2019 to Q2 2020.\nWhen new-car borrowers were segmented by credit score, average new-car loan terms increased across all groups from 2019 to 2020. And, for the first time ever, all but top-tier \"super prime\" borrowers (those with credit scores ranging from 781 to 850) saw average loan terms exceed 72 months.\nSource: Experian State of the Auto Finance Market END
 TITLE: What’s the Average Length of a Car Loan? CONTENT: Average Used-Car Loan Lengths Grow Too\n--------------------------------------\nAverage used-car loan terms increased as well, but by slimmer margins than those for new vehicles, lengthening by roughly two weeks (0.48 months), from 64.82 months for the Q2 2019 to 65.30 months in Q2 2020.\nComparison of used-car loans by credit score tier showed fairly modest growth in loan terms among borrowers in the upper credit score tiers (super prime, prime and nonprime), and reductions in term lengths for borrowers in the lower subprime and deep subprime tiers.\nSource: Experian State of the Auto Finance Market END
 TITLE: What’s the Average Length of a Car Loan? CONTENT: Longer-Term Loans Gain Popularity\n---------------------------------\nComparison of data on both new- and used-car financing showed notable growth in the popularity of loans with terms greater than 73 months, which largely came at the expense of the popularity of 49- to 60-month loans. END
 TITLE: What’s the Average Length of a Car Loan? CONTENT: What Is the Average Term Length for a New Lease?\n------------------------------------------------\nIn contrast with loan terms, auto lease terms fell from Q2 2019 to 2020, albeit very slightly. The overall average lease shortening from 36.76 months in Q2 2019 to 36.66 months for the same period in 2020.\nSegmented by credit score, changes in lease terms broke out as follows:\n*   Among **super prime borrowers**, the average lease terms slipped to 35.87 months in Q2 2020 from 35.98 months a year earlier.\n*   Average lease terms for **prime borrowers** ticked down from 36.96 months in 2019 to 36.92 months in 2020.\n*   Among **nonprime borrowers**, average lease terms remained unchanged, at 37.40 months, from Q2 2019 to the same period in 2020.\n*   **Subprime borrowers** saw the largest reduction in average lease term—declining by 0.25 months (or roughly one week), from 37.46 months in Q2 2019 to 37.21 months in 2020.\n*   **Deep subprime borrowers** were the only group that saw lease periods lengthen: The average lease term for those consumers extended very slightly, from 37.23 months for Q2 2019 to 37.35 months for the same period in 2020. END
 TITLE: What’s the Average Length of a Car Loan? CONTENT: How Longer Auto Loan Terms Can End Up Costing You More\n------------------------------------------------------\nFor car buyers, the main appeal of longer auto loan payment terms is lower monthly payments. For lenders, the advantage of these \"affordable\" loans is collecting significantly greater amounts in interest: No matter what interest rate you're charged, a greater number of payments likely means you'll be paying thousands of dollars more in interest. And, of course, if you're carrying a high interest rate, the additional amount you pay on a longer-term loan can add up to even more.\nConsider the following comparison of total purchase costs for new cars, based on a fairly moderate interest rate of 9% APR. While the monthly payment on an 84-month loan is roughly two-thirds of that on a 48-month loan, the total interest cost for the longer loan is more than 80% greater.\nSource: Experian\nWhen considering various auto loans offers, calculating the total cost of the vehicle and the total interest you'll pay is straightforward: Multiply the monthly payment by the total number of payments to get the total amount you'll pay on the loan. From that amount, subtract the amount you're borrowing to calculate your total interest cost.\nTo get the total vehicle cost, add the amount of your down payment to the total you'll pay on the loan.\nAlong with this considerably greater expense, there are other drawbacks to long-term car loans, such as the possibility you'll end up owing more on the vehicle than it is worth before the loan period is over. That, in turn, could mean your auto insurance policy wouldn't cover the balance of your loan if the car were totaled in an accident. END
 TITLE: What’s the Average Length of a Car Loan? CONTENT: How to Choose the Right Auto Loan Term for You\n----------------------------------------------\nWhen considering an auto loan, it's important to understand the role loan term plays in balancing the amount of the monthly payment against the total cost of the loan—and to determine how much car you can really afford, and whether the \"savings\" you'll see with lower monthly payments are worth the long-term interest charges.\nIf manageable payments are pulling you toward an auto loan with a term greater than 72 months, here are some ideas for rethinking the purchase, and perhaps steering toward a loan with a shorter payment term:\n*   **Consider a used vehicle.** New vehicles are notorious for losing significant market value within the first year after purchase, so one that's a year or two old may come with a significantly lower sticker price. Many are even still under their original manufacturer warranties.\n*   **Increase your down payment.** If you can add another 5% to 10% of the vehicle cost to your down payment, you'll reduce the amount you have to borrow—perhaps making the payments on a shorter-term loan more practical for you.\n*   **Get the best deal you can.** Always apply to multiple lenders when seeking an auto loan to be sure you get the best interest rates available to you, and be prepared to drive a hard bargain when negotiating purchase terms.\nIf the interest rates you're offered turn out to be higher than you'd like and you can afford to wait six months to a year before making your purchase, consider taking steps to strengthen your credit scores. Auto lenders, like other creditors, typically use credit scores to help set the interest rates they charge, so building up your credit score could mean lower interest rates. Lower interest rates mean lower monthly payments, which could help you afford a loan with a shorter payment term.\nThe growth in popularity of longer-term auto loans isn't a trend all car buyers should want to be part of. If you're planning to buy a car, look past the longer-term financing options many dealers are touting, and try to find a shorter-term loan that meets your needs. END
 TITLE: How Can I Get a Low Car Payment? CONTENT: Know and Improve Your Credit Score\n----------------------------------\nBefore you even step foot into a dealership and shop for a car, find out your credit score. If your credit score is below 650, you may be stuck with a high interest rate of 10% or more. This type of interest rate can leave you with high car payments and increase the overall cost of your car.\nFortunately, you can improve your credit score and increase your chances of landing a lower interest rate. Pay your bills on time, keep your credit accounts open, pay down outstanding credit card balances and avoid taking out other loans to help improve your score.\nOnce you've improved your credit score, you'll likely be able to secure a much lower interest rate. Believe it or not, dealers often treat their customers with excellent credit scores of 750 or higher to interest rates of 2.9%, 1.9% or even 0%. END
 TITLE: How Can I Get a Low Car Payment? CONTENT: Compare Auto Loans\n------------------\nInstead of going with the first car loan you find, take the time to shop around and compare all the options available to you. If you are already a customer at a bank or credit union, reach out to them and determine what type of car loan they can offer you. After they've provided you with a rate and term, go to your dealer and find out if they can beat the financing deal you already have.\nSince your credit score is likely to go down every time you apply for a car loan, complete all of your car loan applications within a two-week period. This way, they'll only count as one inquiry on your credit report and won't have too much of a negative impact on your score. END
 TITLE: How Can I Get a Low Car Payment? CONTENT: Make a Bigger Down Payment\n--------------------------\nA down payment isn't required to finance a car. In fact, many dealers often advertise \"0% down payment required.\" The truth is that while you can get a car loan without a down payment, your monthly payments will be much higher because you'll be financing the entire car.\nWhile putting 20% down is ideal, this may not be possible, so just focus on saving as much as you can for your down payment. In addition to lower car payments, a higher down payment may give you negotiating power on the price and interest rate of your car loan. END
 TITLE: How Can I Get a Low Car Payment? CONTENT: Choose a Less Expensive Car\n---------------------------\nAlthough it's tempting to go for the brand-new luxury SUV with all the bells and whistles, going this route can leave you with a very high payment. If your goal is to have a low car payment, choose a less expensive car. This may mean forgoing features like leather seats and a sunroof, opting for an older model, or buying used instead of new. END
 TITLE: How Can I Get a Low Car Payment? CONTENT: Try Avoiding Longer Term Loans\n------------------------------\nOne of the most common mistakes borrowers make when trying to get a low car payment is agreeing to longer term loans. While an 84-month car loan may come with lower payments than a 36-month car loan, you'll pay far more in interest and significantly increase the overall cost of your car. Plus, do you really want to owe money on your car for seven years? The shorter your car loan term is, the less you'll pay in interest and the faster you'll own 100% of your car. END
 TITLE: How Can I Get a Low Car Payment? CONTENT: Consider Leasing a Car\n----------------------\nLeasing a car can help you lower your car payment. Here's how a car lease works: You'll make monthly payments during the term of your lease. Once the term is over, you can return the car, buy it, extend the lease or trade it in for a new lease. Since you'll only be paying for the time you'll be driving the car, you can enjoy far lower monthly payments with a lease.\nIn addition to lower monthly payments, a lease offers fewer repair expenses because most maintenance and repairs will be covered by your warranty. A lease can also give you the chance to save money on sales tax and drive a new or luxury car that you may not be able to afford otherwise.\nOne of the greatest drawbacks of a lease is that it limits how much you can drive. While you can drive a car that you buy as frequently as you like, a lease will typically restrict you to 10,000 or 12,000 miles a year. A lease can also be more expensive in the long run because you'll always be making a car payment and won't have any positive equity that you can use toward your next car. END
 TITLE: How Can I Get a Low Car Payment? CONTENT: The Bottom Line\n---------------\nA high car payment can make it difficult for you to meet other financial goals like saving for retirement or funding your child's college. Fortunately, with a bit of planning and strategy, you can land a low car payment, increase your monthly cash flow and improve your financial situation. END
 TITLE: Why You Should Avoid Long-Term Auto Loans CONTENT: Auto Loan Debt Is Rising\n------------------------\nSince 2009, auto loan debt has risen by 81%; it's now the third-largest type of consumer debt, according to Experian data. All told, Americans owe more than $1.3 trillion in outstanding auto loan balances.\nThe growth in auto loan debt is partly a result of rising vehicle prices. In the first quarter of 2019, the average loan for new passenger vehicles hit a record high of $32,187, Experian data shows. More than 85% of new cars are financed, with the average monthly payment topping $500.\nAs auto loans get larger, consumers are increasingly stretching out their loan terms in an attempt to make their monthly payments more manageable. According to Experian, in Q1 2019, the number of new loans with terms between 85 and 96 months for new passenger vehicles rose 38% compared with Q1 2018. END
 TITLE: Why You Should Avoid Long-Term Auto Loans CONTENT: Alternatives to a Long-Term Auto Loan\n-------------------------------------\nFortunately, a long-term car loan isn't your only option for getting the car you need. There are several alternatives that make more financial sense.\n*   **Save up for a bigger down payment.** The more money you can put down when you buy a car, the less you will need to borrow. A smaller loan means smaller monthly payments, which can make your car more affordable without having to resort to a long-term auto loan.\n*   **Choose a different car.** You might have your heart set on a new car with all the bells and whistles, but adjusting your standards a bit can make a big difference in your costs. Opting for the base trim or a less-expensive model in the same line may be enough to reduce the price to a manageable level.\n*   **Consider a used car.** Opting for a late-model used car is another way to avoid long-term auto loans. You can find gently used, certified pre-owned cars at many dealers, often with warranties and other perks thrown in. Just keep in mind that interest rates on used car loans tend to be higher than those on new car loans.\n*   **Lease instead of buying.** Are you determined to drive a brand-new car? Leasing offers a way to do so with a smaller down payment and monthly payment compared with buying the same vehicle. However, leasing comes with many restrictions, fees and potential penalties—and at the end of the lease, you won't have anything to show for the money you spent. Depending on your needs, leasing may or may not be a good idea. END
 TITLE: Why You Should Avoid Long-Term Auto Loans CONTENT: How Your Credit Score Affects Your Auto Loan\n--------------------------------------------\nIs your credit score the only thing standing between you and your dream car? Having poor credit may make it harder to get an auto loan or may limit your options to high-interest loans. A FICO® Score☉ of 670 or above is considered \"good\" and can open the door to a car loan with a better interest rate (and lower monthly payment) than you'll get if your credit is only fair.\nBefore you start shopping for auto loans, check your credit report and get a free credit score to find out where you stand. Even if your score is good, why not aim for \"excellent\"? For example, those tempting 0% interest auto loan offers are typically reserved for those with the best credit scores.\nYou can improve your credit score fairly quickly by practicing these positive financial habits:\n*   Pay down existing debt, such as credit card balances.\n*   Avoid taking on new debt or applying for credit cards.\n*   Pay all your bills on time.\nSigning up for Experian Boost™† can be another quick way to improve your credit scores. This free service gives you credit for on-time phone, utility and Netflix® bill payments, which don't normally show up on your credit report. END
 TITLE: Why You Should Avoid Long-Term Auto Loans CONTENT: The Long-Term Results of Long-Term Car Loans\n--------------------------------------------\nLong-term auto loans lasting 84 months or more may seem like a great way to get your dream car for less. But in the long run, those lower monthly payments come at a steep cost. At best, a long-term auto loan means paying thousands of dollars more in interest over the loan term. At worst, it means owing more than your car is worth, which could put you in a precarious financial position. Improving your credit score, making a bigger down payment or choosing a less expensive car are smarter ways to get the car you need without getting in over your head financially. END
 TITLE: How to Calculate an Affordable Car Payment CONTENT: It's important you know how much you can afford to pay each month before you go car shopping. To figure this out, take into account all your monthly bills—such as your rent or mortgage, utilities and debt payments—as well as food and other necessary costs. After calculating all of your monthly expenses, take a portion of what's left—how much will depend on your lifestyle and income—and earmark it for your monthly transportation costs.\nAnother way to calculate how much money you'll have for a car payment is with the 50-30-20 rule, which is a popular budgeting ratio. With this method, you take your after-tax income and divide it into three portions. The first 50% goes toward necessities; the next 30% goes to things you want; and the final 20% is for savings.\nThe **50% for necessities** includes obvious items like your rent or mortgage, utilities, health care, food, debt payments, transportation costs and any other unavoidable costs you have each month.\nThe **30% for things that you want** includes entertainment costs, retail purchases and other spending for your enjoyment and quality of life. The key with this portion is to try to limit yourself as much as possible so that anything left over can be put toward savings.\nThe **20% for savings** is simple, and these funds can be allocated as you wish depending on your specific saving goals. Some could go toward a retirement account; some could be put toward an emergency fund; and some could be kept in a general savings account.\nFor most people, transportation costs are considered a monthly necessity, and using the 50-30-20 rule can help you figure out exactly how much this amount should be. Once you've taken 50% of your post-tax income, subtract all your monthly bills, and what you're left with can be used as your transportation allowance. Depending on your income, this leftover portion might be quite large. In this case, you don't have to use all of it for transportation; you can put any extra toward saving.\nRemember that owning a car means paying for much more than just the monthly loan payment, so be sure to account for all transportation costs when trying to calculate your car payment. END
 TITLE: How to Calculate an Affordable Car Payment CONTENT: Consider Total Transportation Costs\n-----------------------------------\nBecause your car payment is only one part of your overall transportation costs, you should also be prepared to pay for gas, maintenance and upkeep, insurance, tolls and other related expenses. Your transportation budget should include everything listed above and a little buffer in case of an emergency or extra unforeseen costs.\nWhile your gas, insurance and maintenance budget will be partly based on what type of car you have, roughly estimate these costs and deduct them from your overall transportation allowance. The remaining portion should give you an idea of what you can afford to pay for a car payment each month. END
 TITLE: How to Calculate an Affordable Car Payment CONTENT: Calculate How Much Down Payment You Can Afford\n----------------------------------------------\nA down payment is money you pay toward the vehicle sale price before taking an auto loan. So when you purchase a $15,000 car and put $1,500 down, for example, you'll need to finance $13,500. Because the amount you put down will change how much you need to borrow, knowing what you can afford to put toward a down payment in advance will help you gauge how much your future car payment will be. END
 TITLE: How to Calculate an Affordable Car Payment CONTENT: How a Car Payment Works\n-----------------------\nJust like any other loan, a car payment will have interest and a set term. Depending on your financial situation and creditworthiness, your car payment could be much more or much less than someone else's, even for the same vehicle. It's important to understand how these payments are calculated so you know if you're getting the best deal possible.\nFirst, be aware of the term, or over how many months your loan will be spread, because the longer you're paying interest, the more expensive the car becomes.\nImagine these scenarios:\n1.  You put a $1,500 down payment on a $15,000 car. Your interest rate is 5.35% and the term of the loan is 48 months. With this calculation, you'd be financing $13,500, and your monthly payment would be $313. The total interest paid on the loan would be $1,524 over the life of the loan.\n2.  Now imagine buying the same car as above, but instead your loan term is 60 months. With the same interest rate, your monthly loan payment goes down to $257, but your total interest paid increases to $1,920.\nWhile a shorter-term loan will typically have a higher monthly payment, the total cost will usually be less depending on your interest rate and term. If you can afford it, paying more each month will allow you to get rid of your car payment quicker and pay less in interest. END
 TITLE: How to Calculate an Affordable Car Payment CONTENT: How to Bring Down Your Car Payment\n----------------------------------\nThere are many ways to save on your car payment, and just because you can afford a certain amount each month doesn't mean you should plan to pay that much. Here are a few ways you may be able to get a lower car payment:\n*   **Buy a used car.** Used cars often cost much less than new vehicles, which means that your payments may be lower, depending on what your interest rate is. Used cars also may help you save on insurance, as your lender may have relaxed requirements on the extent of coverage you need to carry.\n*   **Make a larger down payment.** Consider saving for a few extra months so you can beef up your down payment when going to buy a car. Every extra dollar you pay in your down payment is one less that you'll have to finance and pay interest on over time.\n*   **Consider a lease.** Car leases often have lower monthly payments than car loans. Because you won't have any equity in the car after the lease term ends, car dealerships can often offer lessees new cars at a fairly low monthly rate. Lease agreements typically set a mileage limit and may have maintenance requirements, so make sure to run the numbers and look into all the details beforehand. Also keep in mind that while a lease may lower your monthly payments in the short term, you'll pay more in the long run because you will always have a monthly car payment. When you buy a car, ideally you'll keep the car for a period of time after you pay it off, which brings your monthly payment down to zero.\n*   **Improve your credit.** Interest rates are often based on creditworthiness. Improving your credit score before going car shopping may help you get a better interest rate which will save you money over the life of your loan. END
 TITLE: How to Calculate an Affordable Car Payment CONTENT: Consider Improving Your Credit Before Applying\n----------------------------------------------\nIf you're financing your new car and think you might be able to get a lower interest rate with a higher credit score, consider working on your score for a few months before making a purchase.\nThe best way to improve your credit score is to make all your debt payments on time, as this is the biggest factor credit scoring models consider when calculating your score. Also pay close attention to your credit utilization, or amount of available credit you're using, which is the second-largest factor in your credit score. Be on the lookout for any inaccurate information that might appear in your credit reports. If you find something in your reports that shouldn't be there, file a dispute with one or more of the three major credit bureaus (Experian, TransUnion and Equifax) to see if you can get the information removed from your report.\nConsider getting a free copy of your credit reports and credit scores from Experian to understand what a lender will see when they consider you for new credit.\nFinancing a car can get complicated, so determining how much you can put toward a monthly payment before going into a dealership will help you make sure you're getting a car you can afford. END
 TITLE: What Auto Loan Rate Can You Get With Your Credit Score? CONTENT: What Are the Average Auto Loan Rates by Credit Score?\n-----------------------------------------------------\nExperian's quarterly State of the Automotive Finance Market takes a look at the average auto loan interest rate paid by borrowers whose scores are in various credit score ranges.\nAs of the first quarter of 2020, borrowers with the highest credit scores were, on average, nabbing interest rates on new cars below 4%. Used car interest rates were slightly higher on average, bottoming out on average at 4.29%. Here's what you can expect from auto loan rates for new and used cars: END
 TITLE: What Auto Loan Rate Can You Get With Your Credit Score? CONTENT: How Do Auto Loan Rates Work?\n----------------------------\nAuto loan interest rates are determined through risk-based pricing. If a lender determines you're more at risk of defaulting on your loan because of your credit score and other factors, it will typically charge a higher interest rate to compensate for that risk.\nFactors that can impact your auto loan interest rate include:\n*   **Credit score and history**: Even if your credit score is relatively high, you may still end up with a higher interest rate if there are negative items on your credit report. Examples can include missed payments, collection accounts, repossessions and bankruptcy.\n*   **Loan term**: The longer your repayment term, the more risk it carries for the lender—both that you might default on your payments and that market interest rates may increase, making your loan less profitable than new loans. You may be able to score a lower interest rate by going with a shorter repayment term.\n*   **Down payment**: Putting more money down on your vehicle purchase not only reduces how much you owe, but also decreases the risk associated with your loan. As a result, a high down payment may result in a lower interest rate.\n*   **New vs. used vehicle**: Auto manufacturers provide many incentives for car buyers to purchase new vehicles, including lower interest rates through their financing companies. Other lenders, including banks and credit unions, may also lower their rates to compete. In contrast, if you're buying a used car, there's no incentive for lenders to offer lower rates, which results in higher rates on average.\n*   **Income and debt**: Lenders will also consider your debt-to-income ratio (DTI), or how much of your gross monthly income goes toward debt payments. A high DTI may be a sign that you can't take on any more debt without putting stress on your budget, and may result in a higher interest rate.\n*   **The lender**: Each lender has its own criteria for determining auto loan interest rates, and may have differing starting and maximum rates.\nWhatever auto loan interest rate you qualify for, it'll be represented in the form of an annual percentage rate (APR), which may include the cost of both interest and fees. The lender uses your interest rate to amortize the cost of the loan. This means that you'll pay more interest at the beginning of the loan's term than at the end. END
 TITLE: What Auto Loan Rate Can You Get With Your Credit Score? CONTENT: How to Reduce Your Auto Loan Interest Rate\n------------------------------------------\nImproving your credit score is one of the best ways to score a lower auto loan interest rate. You can do that by checking your credit score and credit report to get an idea of which areas you need to address.\nCommon ways to improve your credit score include getting caught up on past-due payments, paying down credit card debt, limiting new credit applications and disputing inaccurate information on your credit report.\nAs you work on building your credit, here are some other ways you may be able to reduce your auto rate:\n*   **Shop around.** One of the best ways to get a lower rate on your auto loan is to compare rate offers from multiple lenders. Apply for preapproval to get rates from at least three to five lenders to get a good idea of what you're likely to qualify for.\n*   **Apply with a cosigner.** If you don't have time to improve your credit, applying with a creditworthy cosigner may improve your chances of scoring favorable terms. The lender will consider both credit profiles to determine the loan's risk and your interest rate.\n*   **Make a larger down payment.** Again, putting more money down reduces how much you owe and the loan's risk to the lender. If you can afford it, consider making a larger down payment to save money with a lower rate.\n*   **Opt for a shorter repayment period.** A shorter repayment term will result in a higher monthly payment. But if you can afford it, it could help you qualify for a lower rate on your loan and reduce your overall interest costs.\n*   **Refinance your auto loan.** While you may not qualify for a low rate right now, you can refinance your loan at a later date once your credit and financial situation has improved. Many lenders offer auto loan refinance options, allowing you to shop around to increase your odds of getting a low rate.\nConsider each of these options and determine the right ones based on your situation, goals and abilities. END
 TITLE: What Auto Loan Rate Can You Get With Your Credit Score? CONTENT: Maintain Good Credit for Future Auto Purchases\n----------------------------------------------\nWhile improving your credit for your next car purchase can save you money in the short term, maintaining good or excellent credit can provide even more savings in the long run, on future auto purchases as well as other financing options.\nMake it a goal to monitor your credit regularly to keep an eye on your credit score and the different factors that influence it. Keeping track of your credit can also help you spot potential fraud when it happens, so you can address it quickly to prevent damage to your credit score. END
 TITLE: How Do Down Payments Work? CONTENT: Down payment requirements vary from lender to lender and from loan type to loan type. They are usually expressed as percentages of the purchase price—15%, 20% or 25% for example—and must be paid at the time of purchase.\nFor example, the mortgage on a $200,000 house with a 20% down payment of $40,000 would result in financing of 80% of the purchase price—$160,000.\nBecause lenders consider down payments marks of borrowers' good faith and hedges against non-payment risk, down payment requirements may vary according to loan applicants' credit profiles. Lenders may require higher down payments from borrowers with lower credit scores, which can indicate short credit histories, past instances of late or missed payments, or even more severe negative credit events such as loan defaults, foreclosures or bankruptcies.\nWhen you apply for a loan that requires a down payment, the amount of the required down payment will be stated, along with the interest rate and any applicable fees, in the loan offer. Like other loan terms, the down payment amount is negotiable; you may get the lender to agree to a lower down payment in exchange for a higher interest rate. (This boosts your overall borrowing costs two ways—by increasing the amount you're borrowing, and the interest you're paying on the borrowed sum.) Conversely, you can often negotiate lower interest rates or fees in exchange for making a larger down payment—a practice also called \"buying down the points.\"\nMortgage lenders typically require down payments to be made in the form of a certified check. Auto financiers may require certified checks as well, but some accept electronic transfers, debit card payments or personal checks. Retailers of appliances, furniture and other large goods may accept down payments by any of these methods or in the form of credit card payments. END
 TITLE: How Do Down Payments Work? CONTENT: What Is a Typical Down Payment on a House?\n------------------------------------------\nWithin regulated limits, mortgage lenders exercise wide leeway in setting down payment requirements for users with different credit qualifications, just as they do with interest rates and fees. But federal housing programs and industry guidelines make several general practices nearly universal among U.S. home lenders:\n*   While they regularly accept down payments of less than 20%, mortgage lenders nearly all require borrowers to buy private mortgage insurance (PMI) on such loans. Lenders require PMI because they consider it risky to provide a loan for more than 80% of a home's market value. If PMI premiums are required on your mortgage, they'll increase your monthly mortgage payments, but you can have them lifted once you've paid off 20% of the principal on your mortgage loan. For this reason, it's a good idea to try to make your mortgage down payment as close to 20% as you can manage.\n*   First-time homebuyers with FICO® Scores☉ of 580 or higher can make down payments as low as 3.5% on a mortgage backed by the Federal Housing Administration—an FHA loan. Borrowers with credit scores as low as 500 can qualify for FHA loans with a 10% down payment.\n*   Qualifying veterans, service members and surviving spouses can buy homes with no down payment at all through a VA loan backed by the U.S. Department of Veterans Affairs. END
 TITLE: How Do Down Payments Work? CONTENT: What Is a Good Down Payment on a Car?\n-------------------------------------\nAuto lenders typically require lower down payments than mortgage lenders do, with car loan down payments of 10% being fairly common. While lower down payments may be possible, there are good reasons to make a down payment that covers more than 10% of a car's value, not least of which is that a larger down payment generally means lower monthly payments on your loan:\n*   Beware of loan offers, particularly on new cars, that trade off a lower down payment for a longer repayment period. Stretching a loan out from a standard four-year or even a five-year repayment period to six years offers lower monthly payments but also adds significantly to the overall cost of the car.\n*   On most new vehicles, which quickly lose resale value in their first year or two on the road, a down payment of less than 10% and an extended loan term can increase the likelihood you'll end up \"underwater\" on your loan—that is, owing more than the car is worth. END
 TITLE: How Do Down Payments Work? CONTENT: Does a Large Down Payment Offset Bad Credit?\n--------------------------------------------\nIf you have poor credit, it may be possible to persuade a lender to issue you a loan they otherwise wouldn't if you offer a larger down payment than is typically required. Offering to put 25% down on a car, for instance, might sway the finance officer at a car dealership to consider lending you the remaining 75% of the purchase price.\nThere are no guarantees such an approach will work, but it's worth a try if you can afford the down payment and are otherwise disqualified for the loan.\nIf you find your credit is an obstacle to getting credit (or to getting credit at favorable interest rates) another approach to consider is taking steps to improve your credit scores and standing. There are no instant fixes for subpar credit, but taking action today can bring significant improvements in credit scores within a span of six to 12 months.\nIf you're looking for an opportunity to increase FICO® Scores based on your Experian credit data, consider sharing your cellphone and utility payment information via the Experian Boost™† program, so that activity can be reflected in your credit score. END
 TITLE: How Are Homeowners Insurance and Mortgage Insurance Different? CONTENT: What Is Homeowners Insurance?\n-----------------------------\nHomeowners insurance protects you if your home or belongings are damaged during an insured event—think natural disasters like hurricanes, fires, hailstorms and the like. The majority of policies also cover external structures like garages.\nEvery home insurance policy is different. For example, most standard policies exclude earthquakes and floods, so you may need to purchase additional insurance if you want one of these types of coverages. Damage that can be traced back to ordinary wear and tear is also typically not covered. On the upside, most homeowners insurance policies will cover some degree of loss if your personal belongings are stolen or destroyed in an insured event.\nHomeowners insurance typically extends to liability as well. If someone has an accident or gets hurt on your property, your policy will likely cover legal fees and medical costs. The fine print should clarify out-of-pocket costs you may encounter when filing a claim.\n### Homeowners Insurance and Your Mortgage\nSo what does homeowners insurance have to do with getting a mortgage? In most cases, lenders will require you to have homeowners insurance to fund your mortgage. Because they have a financial stake in your home, lenders want to make sure they're protected if, say, a hurricane levels the property.\nHow much you'll pay for it varies depending on where you live, your deductible, the replacement cost of your home and more. The average premium for the most common type of insurance was $1,211 in 2017, according to a National Association of Insurance Commissioners report. Lenders typically fold the premium into your monthly mortgage payment, but you may be able to request to pay it on your own.\nLike anything else, it pays to shop around. Look to your state insurance department, consumer guides, and referrals from friends and family to compare rates and get the best deal. END
 TITLE: How Are Homeowners Insurance and Mortgage Insurance Different? CONTENT: While homeowners insurance covers you if something goes wrong with your home, mortgage insurance protects the lender if you're unable to pay your mortgage. If you run into a situation where you can't make your mortgage payments, the mortgage insurer will take over, which guarantees that the loan gets paid.\nIn most cases, you don't have a choice of whether you pay mortgage insurance: If you can't make at least a 20% down payment on your home purchase, the lender will require it.\nThis is no small consideration. The national median price for a single-family home in the first quarter of this year was $274,600, according to the National Association of Realtors. A 20% down payment works out to nearly $55,000. For many would-be buyers, that's a huge barrier to homeownership. So while it can be costly, mortgage insurance is often worth the price for borrowers who need it to get into their desired home. END
 TITLE: How Are Homeowners Insurance and Mortgage Insurance Different? CONTENT: Is Mortgage Insurance Required?\n-------------------------------\nYou can usually sidestep mortgage insurance altogether if your down payment is at least 20%, but the kind of mortgage you get also plays an important part. Here's how mortgage insurance works for these four common types of home loans.\n*   **Conventional loans:** Borrowers who put down less than 20% will likely need to purchase private mortgage insurance (PMI). PMI generally ranges anywhere from 0.5% to 2% of your total annual loan amount, though factors like your credit score and length of the loan also come into play when determining your rate. Many lenders wrap the cost into your monthly mortgage payment and allow you to do away with PMI once your home equity reaches the 20% mark.\n*   **FHA loans:** Guaranteed through the Federal Housing Administration, FHA loans have less stringent requirements when it comes to income, credit score and down payment. However, borrowers are on the hook for paying a mortgage insurance premium (MIP). This translates to an upfront premium of 1.75% of the loan amount, along with an annual fee included in your monthly payment that ranges from 0.45% to 1.05%.\n    There's one catch: If your down payment is less than 10%, you'll pay mortgage insurance for the entirety of the loan. One workaround is to refinance into a conventional loan once you hit 20% equity. Meanwhile, borrowers who put down 10% or more can cancel their MIP after 11 years.\n*   **USDA loans:** These loans, which require no down payment, are insured by the U.S. Department of Agriculture and are available in specific rural and suburban areas. In lieu of mortgage insurance, borrowers are required to pay guarantee fees—one upfront fee of 1% of the total loan amount, plus a 0.35% annual fee included in your monthly payment that applies for the life of the loan.\n*   **VA loans:** Backed by the U.S. Department of Veterans Affairs, VA loans are designed for military families and don't require a down payment. Instead of buying mortgage insurance, borrowers pay a funding fee that's either paid at closing or folded into the loan balance. Rates range anywhere from 1.4% to 3.6%.\nWill you have to pay mortgage insurance if you refinance your loan? It depends on how much equity you have in your home at the time you refinance. Even if you weren't responsible for paying mortgage insurance on your original loan, you may get stuck with it when refinancing if you have less than 20% equity in your home.\nThe Bottom Line\n---------------\nHomeowners insurance and mortgage insurance are two very different parts of the homebuying journey. While you'll be hard-pressed to find a lender that doesn't require a homeowners policy, you have more flexibility when it comes to mortgage insurance. Your loan type and down payment carry the most weight here.\nA little bit of knowledge goes a long way—and understanding how these two types of insurance are different can only make you feel more confident when navigating the mortgage application process. No matter what, your credit score is an important factor in getting approved for a mortgage. Check your credit score and credit report for free with Experian to get yourself moving in the right direction. END
 TITLE: How the Right Mix of Credit Can Boost Your Credit Score CONTENT: Multiple factors determine your credit score, and two main credit scoring models—FICO® and VantageScore®—have similar criteria in calculating those scores.\nIn general, there are four main categories that impact your credit. The most influential factor is **payment history**, which makes up 35% of a FICO® credit score. If you make your debt payments on time every month, your credit scores will likely improve.\nWhen you miss a payment, the lender may report it as late. Because the credit scoring models put so much weight on payment history, this could seriously impact your scores. That doesn't mean you have to pay off your balance in full every month (though it certainly doesn't hurt). Even paying the minimum or just a portion of your balance—on time—will have a positive effect.\n**Credit utilization** is the next biggest component, making up 30% of your credit score. Your credit utilization rate is based on how much of your available credit is being used, and only considers revolving credit such as credit cards. Low credit utilization signals that you're a responsible borrower, whereas high utilization indicates an unhealthy reliance on credit to fund your lifestyle.\nIdeally, you should keep your credit utilization rate below 30% overall and on each individual credit card. To calculate your utilization, determine your total available credit and multiply it by 30%. Stay below that number or risk hurting your credit scores.\nThe third most important factor is the **length of credit history**, which is the average age of all your credit accounts. These are counted from the date you opened the account and include only currently active loans or lines of credit.\nA high credit age reflects well on your credit report, while a young one may drag down your scores. While you can't change these numbers overnight, paying your bills on time over months and years will help you as your credit history lengthens.\nThe final component of a credit score is the **credit mix**, determined by how many different types of revolving and installment credit you have (see below). Credit mix counts for 10% of a person's FICO® credit score.\nMaintaining a mix of credit demonstrates that you can handle multiple types of loans. Along with the other elements above, improving your credit mix can help you reach excellent credit score status.\nBe aware, however: Filing for bankruptcy, having a debt go to collections and being evicted will also be reported on your credit report and will negatively affect your credit scores. END
 TITLE: How the Right Mix of Credit Can Boost Your Credit Score CONTENT: What Are the Different Credit Types?\n------------------------------------\nThere are two kinds of credit: revolving and installment.\n**Installment credit** has a fixed end date with a series of payments due every month. Installment loans include mortgages, student loans, auto loans, and personal loans.\n**Revolving credit** doesn't have a specific end date or set balance. Instead of spacing out the balance equally over a certain length of time, a minimum payment is due each month. Consumers can choose to pay more than the minimum but are not required to. Credit cards are the most common type of revolving credit. A home equity line of credit (HELOC) is another type.\nThere are two types of credit cards: bank cards and retail cards. Bank cards are issued by banks, while retail cards are from brick-and-mortar and online stores. Retail cards often come with higher interest rates and sneaky fine print, so be sure you are familiar with all the details before using a retail card.\nAn ideal credit mix includes a blend of revolving and installment credit. An easy way to use revolving credit is to open a credit card—and pay your bill on time every month. Ideally, charge only what you can pay off every month to avoid interest. If you don't have an installment loan and only have credit cards, consider opening a small personal loan or other types of secured loan. This will demonstrate your ability to manage different types of credit. END
 TITLE: How the Right Mix of Credit Can Boost Your Credit Score CONTENT: What Isn't Part of Credit Mix?\n------------------------------\nTwo of the most common types of loans that don't count toward credit mix are payday loans and title loans. Lenders who provide payday and title loans don't report them to credit bureaus, so they won't impact your credit scores or show up on your credit report. Even if you repay a payday loan on time every month, it won't factor into your credit report.\nThe only catch is if you default on a payday loan or title loan. In this case, it may be sold to a collection agency, which will then report it on your credit. In other words, payday and title loans can't help your credit, but they can absolutely hurt it. END
 TITLE: How the Right Mix of Credit Can Boost Your Credit Score CONTENT: Does a Lack of Credit Mix Hurt Credit Scores?\n---------------------------------------------\nIf you only have one type of credit in your profile, you shouldn't see a huge impact on your score. You may even still reach the coveted \"800 club\" without a variety of credit, although it will be more difficult.\nIf you want to make your credit score as perfect as possible, however, having credit mix will help you get there. Building a financially secure future is a game of inches, so even a portion as small as 10% of your credit score should be taken seriously. END
 TITLE: Do You Really Need Mortgage Insurance? CONTENT: What Does Mortgage Insurance Cover?\n-----------------------------------\nMortgage lenders expect a buyer to provide at least 20% of a home's purchase price as a down payment. Such a sum can be prohibitive, especially when your income is limited, or if you're a first-time homebuyer and don't have existing home equity available. For example, 20% of a $200,000 mortgage would be $40,000, a cost that's likely to overwhelm many homebuyers. It's important for lenders, though, as it protects their interests in the event of default and foreclosure. They'll at least have the funds that you initially put down when you bought the home.\nThe primary purpose of mortgage insurance is to reduce a lender's risk in lending you money. With that coverage, your insurer will step in to pay the lender if you do not make your payments as agreed. Mortgage insurance can help you buy a home without needing to provide a substantial down payment because it gives the lender confidence the loan will be repaid if you renege. END
 TITLE: Do You Really Need Mortgage Insurance? CONTENT: What Are the Types of Mortgage Insurance?\n-----------------------------------------\nThere are several varieties of mortgage insurance, and the type you obtain depends on the kind of mortgage you get:\n*   **Private mortgage insurance (PMI)**: This type of mortgage insurance covers a conventional loan you'd get from a bank or credit union. The cost of PMI can range from 0.5% to 2% of the total loan amount per year and usually is paid monthly. The rate you get is based on factors such as your credit score, the loan type, down payment and length of the loan.\n*   **Federal Housing Authority (FHA) mortgage insurance**: If you have low to moderate income, you may be eligible for an FHA loan that does not require the standard 20% down payment. These loans are issued by lenders that are approved and insured by the FHA. Mortgage insurance is required, and it's broken down into two parts. The upfront mortgage insurance premium is 1.75% percent of the loan amount and you'll make monthly payments toward an annual mortgage insurance premium of 0.45% to 1.05%.\n*   **U.S. Department of Agriculture (USDA) mortgage insurance**: Mortgages issued through the USDA, USDA loans are available to certain suburban and rural homebuyers. Although no down payment is expected, a monthly mortgage insurance premium of 0.5% of the loan amount is required.\n*   **Funding fees**: With a mortgage that's guaranteed through the U.S. Department of Veterans Affairs (a VA loan), you have the option to put down less than 20% without PMI, though funding fees are required. These fees protect the lender in the event of foreclosure much like mortgage insurance. If you're in the regular military, the basic funding fee for a zero down payment mortgage is 2.15%, but it will be less if you put some money down. If you're in the Reserves or National Guard, the basic funding fee is a little higher, starting at 2.40%. END
 TITLE: Do You Really Need Mortgage Insurance? CONTENT: How Is Mortgage Insurance Calculated?\n-------------------------------------\nPaying mortgage insurance or funding fees instead of coming up with a large sum of cash for a down payment can be compelling. You may not want to wait many months or years to bid on your dream house. But before you decide, examine the numbers closely. With insurance or similar fees, the monthly payments will be higher than if you made the standard down payment, and the final costs can be extreme. You'll pay PMI premiums until you reach 20% to 22% equity.\nHere's how much to buy a home with PMI. Imagine the loan is $200,000, comes with a 30-year term and has an interest rate of 4%. The mortgage insurance is calculated at 1.5%:\n*   You would have 88 PMI payments of $235\n*   Your mortgage payment plus PMI would be $1,133\n*   The total PMI costs would be $20,680\n*   After the PMI is removed, your mortgage payments would be $898\nOn the other hand, if you gave the lender the full 20% down payment ($40,000):\n*   There would be no PMI costs\n*   Your mortgage-only payment would be $764\nHome prices can be far greater than $200,000, so the larger the mortgage and the less you offer as a down payment, the higher those costs will be. To make matters worse, the premiums or fees do not go toward the loan's balance. Run your own numbers in a mortgage calculator prior to entering into such an agreement, and ask yourself if it's truly worth it. END
 TITLE: Do You Really Need Mortgage Insurance? CONTENT: Can You Avoid Mortgage Insurance?\n---------------------------------\nAfter analyzing the costs, you may find that it's in your best financial interest to offer a lender 20% of the purchase price as a down payment after all. You'd avoid the extra expense associated with mortgage insurance, and the monthly payment will be more reasonable. To make it happen, develop a plan that will add to your income and decrease your expenses so you can save the necessary amount for your goal. Other methods include borrowing from your retirement plan or a relative, or selling unneeded but valuable assets.\nIf you don't want to delay homebuying and you're comfortable paying the extra costs with mortgage insurance or funding fees, it can also be a wise decision. Maybe you've found a piece of property that's too great of a deal to pass up. There is good news if you use PMI for your conventional loan because the premiums won't last for the life of the mortgage. After you accumulate 20% in equity, you can ask your lender to stop the policy. If you don't reach out to the lender, the insurance will automatically end when your home reaches an equity level of 22%.\nAs for FHA loans, there is a benefit to coming up with a down payment of at least 10%. The mortgage insurance will stop after 11 years, and at that stage your payments will be lowered. If you don't put that much down, though, the insurance will continue until the loan is paid in full.\nBuying a home is an exciting, if not expensive, venture. If you want to start with no or little money down, mortgage insurance or funding fees may be right for you. Then again, you may prefer to wait until you're in a stronger financial position with the full down payment ready to go. The choice is yours.\nWhichever direction you choose, obtain your free credit report with Experian long before house hunting so you can clear up any errors you may find and strategically add attractive information to increase your credit score. Doing so will lower the cost of PMI and possibly help you qualify for a lower-interest mortgage. END
 TITLE: How to Lower Monthly Mortgage Payments CONTENT: Lowering Your Monthly Mortgage Payment When You Buy\n---------------------------------------------------\nIf you're looking to nab a lower monthly mortgage payment when buying a home, focus on the ways you can decrease how much you borrow, how much interest you'll pay or the amount you're charged for the other expenses that make up your monthly mortgage payments.\n*   **Improve your credit.** While you can qualify for some types of mortgages with a credit score in the high 500s to mid 600s, a higher score can help you get a lower interest rate. If you don't need to buy a home right away, improving your credit first could be a wise idea.\n*   **Save for a bigger down payment.** The larger your down payment, the less money you'll have to borrow and repay. A larger down payment can also help you qualify for a lower interest rate. And, if you put 20% or more down, you can avoid paying for private mortgage insurance (PMI) with a conventional loan, which further reduces your monthly mortgage payment.\n*   **Look for no or lender-paid PMI options.** Even if you can't afford a 20% down payment, there are mortgage options without mortgage insurance. A VA loan through the Department of Veterans Affairs could work, if you qualify. Private mortgage lenders may also offer mortgages with a low down payment and charge a higher interest rate rather than requiring you pay for PMI. These lender-paid options can lower your monthly mortgage payment, but consider the long-term cost and whether it's a worthy tradeoff.\n*   **Get a piggyback loan.** Another way to avoid PMI without putting 20% down is to get a piggyback second mortgage. A common arrangement is a 80-10-10 loan, where you borrow 80% with your primary mortgage, borrow 10% with your second mortgage and put 10% down. You'll need to repay both mortgages, but sometimes it can be cheaper than a single mortgage with PMI.\n*   **Choose an adjustable-rate loan.** An adjustable-rate mortgage (ARM) has an initial period (often lasting one, three, five, seven or 10 years) with a fixed interest rate. After the initial period, the rate can be regularly adjusted (once a year is common) until it's paid off. ARMs often start with a lower rate and monthly payment than fixed-rate mortgages, but you're taking on the risk of having a higher interest rate and corresponding monthly payment later. If you're planning to sell your house within a few years, this could be a good solution—less so if you plan to stay for decades.\nFiguring out which mortgage offers will be best when you're buying a home is an important decision, but know that there will also be ways to lower your monthly mortgage payment after you've moved in. END
 TITLE: How to Lower Monthly Mortgage Payments CONTENT: Consider Refinancing Your Mortgage\n----------------------------------\nRefinancing a mortgage is when you take out a new mortgage to replace your current loan. Refinancing can help you save money and lower your monthly payment if you can qualify for a lower interest rate or a mortgage without PMI. You may also be able to lower your monthly payment by refinancing to a loan with a longer term.\nFor example, if you have 22 years left on your current mortgage and refinance to a 30-year mortgage, spreading out the payments over an extra eight years will lower your monthly payment amount—at a cost. Depending on rates when you refinance, you may have to accept a higher interest rate than you currently have, and those lower monthly payments will also cost you an extra eight years in interest.\nYou'll also need to account for the closing costs on the new loan when you refinance. It can take several years to break even, so refinancing might not be a good idea if you plan on moving soon. END
 TITLE: How to Lower Monthly Mortgage Payments CONTENT: Remove Mortgage Insurance Payments\n----------------------------------\nIf you took out a conventional loan with PMI, or a government-backed FHA or USDA loan with a mortgage insurance premium (MIP), removing the insurance can lower your monthly mortgage payments.\nWith a conventional loan, the PMI will be automatically removed when you're scheduled to reach 22% equity—meaning the principal balance is at 78% of the home's original value. However, you can request to cancel PMI earlier—when you reach 20% equity.\nIf you're over 20% equity because your home's value has increased, you may need to pay for a new appraisal and then request to cancel your PMI based on the current balance and value. Alternatively, you could refinance the loan and may qualify for a PMI-free mortgage.\nFor borrowers who took out an FHA loan after June 2013, the MIP will be removed after 11 years if you put at least 10% down. If you put less down with an FHA loan, or have a USDA loan, the only way to remove the MIP payments is to refinance with a different loan that doesn't require mortgage insurance. END
 TITLE: How to Lower Monthly Mortgage Payments CONTENT: Recast Your Mortgage\n--------------------\nIf you've been paying more than the required amount, or have savings that you could put toward your mortgage, you may be able to lower your monthly payments by recasting your mortgage.\nUnlike refinancing, recasting won't reset your loan term or change your loan's interest rate. Instead, recasting will reamortize your loan, which creates a new payment schedule based on the current principal balance.\nFor example, if you have a 30-year, $400,000 mortgage with a 3.65% APR, your monthly payment may be about $1,830. Ten years into the loan, your balance will be about $311,000.\nMaking an extra $11,000 payment won't lower your monthly mortgage payment, although it can lead to paying off the loan early. However, your lender may allow you to recast the loan based on the $300,000 principal balance. You'll keep the same term and interest rate, but your monthly payment drops to about $1,763, or $67 less a month.\nWhen it's an option—only some mortgages lenders offer recasting and it's not available on government-backed loans—there may be a fee of around $200 to $250 for recasting. END
 TITLE: How to Lower Monthly Mortgage Payments CONTENT: Request a Mortgage Loan Modification\n------------------------------------\nA mortgage loan modification may be another way to lower your monthly mortgage payment without refinancing. However, while recasting might work for people who can make extra payments, loan modification is generally for people who are struggling to afford their payments.\nIf you're having financial trouble, reach out to your loan servicer immediately, ideally before you miss a payment, to ask about hardship options. For example, a mortgage forbearance could allow you to skip a few payments if you're experiencing a short-term setback. A loan modification is a more medium- to long-term solution as it permanently modifies the terms of your loan.\nExamples of loan modifications include extending your repayment period to lower your monthly payment, decreasing the loan's interest rate or (less commonly) reducing your loan's principal balance. END
 TITLE: How to Lower Monthly Mortgage Payments CONTENT: Remember the Big Picture\n------------------------\nThere's no one-size-fits-all answer when it comes to whether you should try to lower your monthly payment. Doing so can lead to paying more interest in the long run, but that might not be a concern if you sell the home or refinance in a few years. And, even if you have to pay more interest, lowering your monthly payment is likely a good idea if you need to free up room in your budget to afford all your bills. In short, consider the pros and cons to each approach and how they'll impact your overall financial situation. END
 TITLE: How Much House Can I Afford? CONTENT: Check Your Credit Reports and Scores\n------------------------------------\nWhen you apply for a mortgage, most lenders request your credit report and credit score from one or more of the three national credit bureaus (Experian, TransUnion and Equifax). If your credit score falls below a minimum threshold (determined at the discretion of the lender), your application may be turned down. Mortgage lenders' credit score requirements vary, but a minimum of 620 on the FICO scale of 300 to 850 is not unusual for a mortgage, and most lenders will reject applicants with FICO® Scores☉ below 580.\nIf your credit score barely meets the lender's minimum requirements, you can expect to pay comparatively high interest rates and fees on the loan. Lenders typically charge borrowers with lower credit scores more than those with higher scores. The difference between a \"fair\" FICO® Score and one in the \"good\" range can mean thousands of dollars in savings over the life of a mortgage.\nIn addition to checking your credit scores, most lenders will look closely at the credit reports they're based on. Negative entries in a report such as late or missed payments, accounts transferred to collection agencies, or more severe items such as foreclosures or bankruptcies can also be grounds for a mortgage application being rejected.\nTo know where you stand before seeking a mortgage, it's a good idea to check your credit report and credit score at least three to six months before you apply for a loan. You can get a copy of your credit report from each credit bureau once a year at AnnualCreditReport.com, or get your Experan credit report and score for free. Review your credit report carefully and consider taking steps to get your credit mortgage-ready:\n*   Inaccurate information on your credit report can hurt your credit score, so if you find any, follow up with the credit bureaus to make any necessary corrections.\n*   If your credit score is lower than you'd like, consider taking six months to a year to try to improve your credit score before applying for a mortgage.\n*   If you're ready to proceed with your home search, avoid applying for new loans or credit cards at least six months before applying for your mortgage (or mortgage preapproval). The credit checks associated with those applications temporarily lower your credit scores, which can work against you when you apply for a mortgage. Taking on additional debt also increases your debt-to-income ratio. END
 TITLE: How Much House Can I Afford? CONTENT: Consider Your Income and Debt\n-----------------------------\nWhen you apply for a mortgage loan, one of a lender's chief considerations will be your debt-to-income (DTI) ratio, which is the portion of your monthly income that goes toward debt payments. To calculate your DTI ratio, add up your recurring debt-related expenses (credit card bills, student loans, auto loans, etc.) and divide that sum by your gross monthly income (the amount you earn before expenses, withholding taxes, retirement savings, etc.). If your gross earnings are $6,000 a month and the sum of your total debt-related expenses is $2,700, your DTI ratio is 2,700\/6,000, or 45%. From a lender's point of view, the lower your DTI ratio, the better, because somebody with a high DTI ratio may have difficulty covering the additional debt payments of a mortgage loan.\nThe maximum acceptable DTI ratio varies among lenders, but borrowers who receive qualified mortgages that meet federal home-lending guidelines must have a DTI ratio of 43% or lower, and many lenders look for a DTI no higher than 36%. END
 TITLE: How Much House Can I Afford? CONTENT: Decide How Much Money to Put Down\n---------------------------------\nThe amount of cash you put toward a down payment plays a major role in determining how much house and mortgage you can afford. It helps determine the amount the lender is willing to loan you and the fees and the interest charges that will apply. Those numbers, in turn, determine the amount of your monthly mortgage payment.\nWhen deciding how large a down payment to make, it's helpful to understand how mortgage lenders think about down payments. Instead of focusing on the down payment itself, lenders focus on the percentage of a property's value that isn't covered by the down payment—that is, the portion of the property value that they are willing to cover with a loan. Lenders (and the federal authorities who regulate them) refer to this using a figure known as loan-to-value (LTV) ratio, calculated by dividing the amount of the loan by the price of the property:\nIn the case of a $200,000 house, if you make a 10% down payment ($20,000) on the property, the LTV ratio on the amount you'd need to borrow to buy the property would be $180,000 divided by $200,000, or 90%. If you increase your down payment to $30,000 (15% of the purchase price), the LTV ratio would decrease to 85%.\n\"Conforming mortgages\" that meet the purchase requirements set by Fannie Mae and Freddie Mac, the government-sponsored enterprises that eventually buy most U.S. single-family-home mortgages, can have LTV ratios no greater than 80%—meaning down a payment of at least 20%.\nConventional mortgage lenders may issue \"nonconforming\" loans with LTV ratios as high as 95% (or down payments as little as 5%). The interest rates and fees on these loans are typically much higher than on conforming loans, and borrowers with LTVs greater than 80% are typically required to buy private mortgage insurance, which can increase in monthly mortgage payments.\nIn addition to its importance in determining the total amount you can borrow, your down payment amount often plays a role in setting the origination fees, you typically pay when you take out a mortgage loan. Many lenders give borrowers the option of trading a higher down payment for reductions in origination fees. Fees are expressed in terms of percentage points of the loan amount, or simply \"points,\" and buying these \"discount points\" can mean major savings over the life of a loan. END
 TITLE: How Much House Can I Afford? CONTENT: Consider the Mortgage Term\n--------------------------\nThe interest rate that applies to your mortgage is the single biggest determinant of what your loan will cost you over time, but the amount of time you'll be making payments is a huge factor as well.\nU.S. mortgages loans typically carry repayment periods of 15 years or 30 years, although longer and shorter repayment periods are available. Shorter loan periods typically come with lower interest rates, and because those rates are applied for a much shorter length of time, their costs over the life of the loan are considerably lower than on longer loans. The main advantage to longer-term loans is that stretching repayment over a longer time frame means lower monthly payments.\nTo illustrate the significance of repayment terms alone, holding other factors equal, consider the differences in monthly payment amount and total cost (principal and interest) between 15-year and 30-year mortgages on an average U.S. home priced at $226,800. For comparison purposes, we'll assume the interest rate on both loans is 4.5%, and that you made a down payment of 20% ($45,360), so PMI isn't a consideration: END
 TITLE: How Much House Can I Afford? CONTENT: Consider the Costs Beyond the Mortgage\n--------------------------------------\nWhen determining how much you can afford to budget each month to cover your mortgage, don't forget that you'll likely incur a number of new expenses beyond the mortgage when you become a homeowner. Be sure your planning allows sufficient funds to cover expenses such as:\n*   Property taxes\n*   Homeowners insurance (including basic casualty coverage as well as applicable riders for earthquakes, wildfires, floods and other natural disasters, which many lenders require on homes in susceptible parts of the country)\n*   Building association dues (where they apply)\n*   Home maintenance, repair or renovation\nDepending on the age and condition of your home when you buy it, you may need to plan for the cost to replace a roof, furnace, HVAC unit or to update appliances or other features of the home. Setting some funds aside for those projects each month can help prevent them from becoming emergencies down the line.\nMortgage Calculator\n-------------------\n†The information provided is for educational purposes only and should not be construed as financial advice. Experian cannot guarantee the accuracy of the results provided. Your lender may charge other fees which have not been factored in this calculation. These results, based on the information provided by you, represent an estimate and you should consult your own financial advisor regarding your particular needs. END
 TITLE: How Much House Can I Afford? CONTENT: Look Into Different Types of Mortgage Loans\n-------------------------------------------\nOnce you've determined how much you have to use as a down payment, and how much you can afford for a monthly mortgage payment, start comparing mortgage offers. Once you settle on a lender you like, consider getting preapproved for a mortgage before you begin shopping for a home.\nIf you're a first-time homebuyer, a service member or veteran (or the surviving spouse of one), or are looking for a home in a rural part of the country and you meet certain income requirements, you may qualify for one or more federal programs designed to help Americans become homeowners. A licensed real estate professional or a loan officer at a bank, credit union or home lender can help you decide which programs you qualify for, and which mortgage type is best for you. END
 TITLE: How Much Interest Do You Pay on a Mortgage? CONTENT: How Does Mortgage Amortization Work?\n------------------------------------\nMortgages are generally fully amortized installment loans, which means you repay the loan over a fixed repayment term and your monthly payment gets split between the principal—the amount you borrowed—and interest. (Additionally, part of your monthly mortgage payment may also go toward other expenses, such as mortgage insurance, homeowners insurance and taxes.)\nA mortgage's amortization table shows how this split changes over time. For example, here's an amortization table with the first four and last four payments on a $280,000 mortgage with a 30-year term and a fixed 3.25% interest rate.\nMonth\nPayment\nPrincipal\nInterest\nBalance\nSept. 2020\n$1,218.00\n$459.67\n$758.33\n$279,540.33\nOct. 2020\n$1,218.00\n$460.91\n$757.09\n$279,079.42\nNov. 2020\n$1,218.00\n$462.16\n$755.84\n$278,617.26\nDec. 2020\n$1,218.00\n$463.41\n$754.59\n$278,153.85\n...\nMay 2050\n$1,218.00\n$1,203.95\n$14.05\n$3,982.82\nJune 2050\n$1,218.00\n$1,207.21\n$10.79\n$2,775.61\nJuly 2050\n$1,218.00\n$1,210.48\n$7.52\n$1,565.13\nAug. 2050\n$1,569.37\n$1,565.13\n$4.24\n$0.00\nIf you have a fixed-rate mortgage, your monthly mortgage payment will be the same over the life of your loan. Initially, most of your mortgage payment will go toward interest. But as you pay down the loan's principal balance, less interest accrues and a larger portion your payment goes toward the principal. By the end, nearly the entire payment goes to paying down the principal.\nWith an adjustable-rate mortgage (ARM), your monthly payment may change as the interest rate adjusts. The loan can still have a set repayment term, such as 15 or 30 years, and there are estimated amortization tables. However, when your rate adjusts, your monthly payment may be recalculated, or \"recast,\" based on a new amortizable table and the remaining loan term.\nThere are also mortgages that offer different payment arrangements and don't fully amortize. For example, you may make interest-only payments or relatively lower monthly payments for five to seven years, and then have to pay the entire remaining balance with one balloon payment. The arrangement can be beneficial if you plan on moving or refinancing soon, but you're also taking on a big risk if your plans fall through.\nIn some cases, your mortgage could also have negative amortization—when your monthly payment isn't enough to pay off the accruing interest and your balance grows. As a result, you can wind up owing more than your house is worth. END
 TITLE: How Much Interest Do You Pay on a Mortgage? CONTENT: How to Calculate How Much Interest You'll Pay on a Mortgage\n-----------------------------------------------------------\nYou can figure out how much interest you'll pay each month by looking at an amortization table for your loan. You can ask your lender for one or use an online mortgage calculator that has an option to break down your amortized payments by month or year.\nWhen you close on your mortgage, you can also look at the fifth page of your Closing Disclosure form to see the total amount of your finance charges and the total interest percentage—the amount you pay in interest relative to the loan amount over the loan's term.\nHowever, how much you actually pay in interest will depend on whether you repay the mortgage over the full term, refinance your mortgage or pay off the mortgage early when you sell the home. END
 TITLE: How Much Interest Do You Pay on a Mortgage? CONTENT: What Factors Affect How Much Interest You'll Pay on a Mortgage?\n---------------------------------------------------------------\nWhile you may see headlines about how interest rates have climbed or fallen, the rate you read about in a news story isn't necessarily the one you'll receive on your mortgage. As with other types of loans, the rate you receive can depend on your creditworthiness and the loan's specifics.\nWith mortgages, the following can affect your interest rate:\n*   **The lender**: Lenders may offer different rates on their loans, which is why it's important to get several offers before choosing your lender.\n*   **Your credit**: You may be able to qualify for a mortgage with a score of 580 to 620, or lower if you can put at least 10% down. However, a higher credit score can help you qualify for the best rates on your mortgage.\n*   **Your down payment and loan amount**: Putting more money down and taking out a smaller loan can lead to lower interest rates as lenders take on less risk. Additionally, if you put at least 20% down, you don't need to pay for private mortgage insurance (PMI).\n*   **The loan term**: Choosing a shorter repayment term for your loan can also lead to lower interest rates, but your monthly payment will be higher.\n*   **The loan type**: There are different types of loans, such as conventional loans, jumbo loans and mortgages from government-backed lending programs. The loans may have different fees, insurance requirements, interest rates and minimum down payment amounts.\n*   **Whether the loan has a fixed or adjustable rate**: Adjustable-rate mortgages tend to start with a lower interest rate, but the rate can rise in the future. Fixed-rate loans can be less risky as the interest rate will never change, but the rate may start a little higher.\n*   **Mortgage points**: You may be able to make an upfront payment for discount points, which lower your loan's interest rate. Alternatively, lenders may offer you credits in exchange for accepting a higher interest rate. END
 TITLE: How Much Interest Do You Pay on a Mortgage? CONTENT: How to Lower the Interest on Your Mortgage\n------------------------------------------\nWith the above factors in mind, here are a few things you can do to help lower your interest payments when you get a mortgage:\n*   **Improve your credit.** Although it can take time, try to improve your credit before taking on a mortgage. One potentially quick way to do this is by paying down credit card debt or consolidating credit card debt with a personal loan. However, you should avoid taking on a new loan if you plan on buying a home in the near future as new debt could compromise mortgage approval.\n*   **Save up a large down payment or buy a cheaper home.** While you may want to move right away, taking more time to save up a large down payment could help you secure a lower interest rate and avoid extra mortgage insurance costs. If you can't wait, consider a less expensive home to increase the amount of your down payment relative to the home's cost.\n*   **Choose a shorter term or variable rate.** Regardless of the loan amount, a shorter term and variable rate can also help you lock in a lower interest rate. However, they both come with additional risk as it may be difficult to afford the large payments in the future. END
 TITLE: How Much Interest Do You Pay on a Mortgage? CONTENT: Don't Forget About Other Expenses\n---------------------------------\nWhile interest on a mortgage can be a significant expense, and finding ways to lower your rate can save a lot of money, don't forget about the other expenses that can come with buying a home. These may include closing costs, insurance premiums, taxes and fees. Understanding all of these, along with the interest rate, can help you determine if you can afford to buy a home. END
 TITLE: What Kind of Mortgage Interest Rate Can I Get With a 750 Credit Score? CONTENT: Is 750 a Good Credit Score?\n---------------------------\nIn the scoring models used by most mortgage lenders, credit scores range from 300 to 850. This score range is further divided into tiers, which can help you understand how lenders and others may view your score. FICO® Scores☉ , the most commonly used score among lenders, break into the following five ranges:\n*   300 to 579 is considered \"very poor\"\n*   580 to 669 is considered \"fair\"\n*   670 to 739 is considered \"good\"\n*   740 to 799 is considered \"very good\"\n*   800 to 850 is considered \"exceptional\"\nA score of 750 falls in the very good range and shows that you've historically done a good job managing your debt as agreed. When considering you for a loan, lenders use your credit score to help gauge how likely it is you'll pay back your debt on time. A higher credit score tends to predict a higher likelihood that they'll recoup their debt without issue. END
 TITLE: What Kind of Mortgage Interest Rate Can I Get With a 750 Credit Score? CONTENT: Since credit scores serve as evidence that a person has managed debt well in the past, consumers with higher scores typically qualify for better interest rates and credit products. Credit scores are not the only factor in determining the interest rate you'll pay on a mortgage, but they do play a big role. The following is an estimation of the annual percentage rate (APR) you could get on a 30-year, $300,000 mortgage with the following scores:\nSource: myFICO. Based on national average rates as of August 2020. END
 TITLE: What Kind of Mortgage Interest Rate Can I Get With a 750 Credit Score? CONTENT: Be Prepared and Know Your Credit Before You Apply\n-------------------------------------------------\nBefore you begin looking at homes, consider asking a lender to preapprove you for a loan. This will tell you how big of a loan you qualify for, which will be a major factor in your home search. Mortgage preapproval won't affect your credit scores.\nWhen getting a preapproval, lenders will check your credit and other aspects of your finances to see what you can afford. If you don't already know what your credit score is, it's a good idea to check it on your own prior to talking to a lender.\nLenders will look through your report carefully, with an eye out for a record of on-time payments and whether you have any derogatory marks on your reports. Your credit utilization ratio will also be a key factor, as it tells the lender how much of your available credit you're currently using.\nHaving a preapproval isn't always required, but many sellers will not accept offers from buyers who have not been preapproved. In a busy real estate market, you could hurt your chances for getting the house you desire if you don't have one.\nIf you check your credit and find that your score isn't where you want it to be, take some time to improve it before talking to a lender. END
 TITLE: What Kind of Mortgage Interest Rate Can I Get With a 750 Credit Score? CONTENT: How to Improve Your Credit Score Before Applying for a Mortgage\n---------------------------------------------------------------\nThere are several ways you can improve credit relatively quickly. Taking a few simple steps prior to applying for a mortgage could help increase your chances of approval and may help you lock in a favorable low interest rate.\n*   **Pay down existing debt.** Lenders will look at your debt payments as a ratio of your income when calculating how much you can borrow. This is called your DTI, or debt to income ratio, and paying down debts now can help improve this ratio for when you apply for a mortgage. Also, paying down revolving debts—like credit card balances—can help improve your credit utilization ratio and help you boost your score in a short period of time.\n*   **Keep paying bills on time.** Your payment history is the most important aspect of your credit score. Lenders view late and missed payments as signs you may not manage your finances well, which can affect their comfort level when it comes to taking you on as a borrower.\n*   **Dispute any inaccurate information.** Mistakes and fraud can happen, so if you see information you believe to be inaccurate on your credit report, make sure to file a dispute with one or all of the three main credit bureaus (Experian, TransUnion and Equifax) as soon as possible.\n*   **Don't apply for new credit.** During the mortgage approval process, even small changes to your credit can disrupt the underwriting process and disqualify you for a loan. Any applications for new credit will appear in your credit reports, and could cause a lender to change their mind. Creditors will pull your credit reports right before issuing you a mortgage (even if they've done it before for a preapproval), so it's important to make sure not to make drastic changes leading up to your closing date.\nIf you aren't sure where your credit stands, get a free copy of your credit report and scores from Experian to understand what lenders will see when they consider your application and what areas of improvement you may have. END
 TITLE: What Credit Score Do I Need to Buy a House? CONTENT: What Is the Minimum Credit Score to Get a Mortgage?\n---------------------------------------------------\nSeveral different types of mortgage loans exist, and each one has its own minimum credit score requirement. Even so, some lenders may have stricter criteria in addition to credit score they use to determine your creditworthiness.\nHere's what to expect based on the type of loan you're applying for:\n*   Conventional loans: These loans aren't insured by a government agency and conform to certain standards set by the government-sponsored entities Fannie Mae and Freddie Mac. Conventional loans typically require a minimum credit score of 620, though some may require a score of 660 or higher.\n*   Jumbo loans: A type of non-conforming mortgage loan, jumbo loans carry higher loan amounts than conventional loans. Because there's more risk involved with bigger loans, jumbo loans may require a credit score of 700 or higher.\n*   FHA loans: Insured by the Federal Housing Administration, FHA loans have a minimum credit score of 500 if you make a 10% down payment, or 580 if you put down 3.5%.\n*   VA loans: These loans are insured by the U.S. Department of Veterans Affairs and were created for select members of the military community, their spouses and other eligible beneficiaries. VA loans don't have a minimum credit score requirement, but lenders that offer these loans typically require that you have a score of 620 or higher.\n*   USDA loans: Insured by the U.S. Department of Agriculture, USDA loans are meant for low- and moderate-income homebuyers looking to purchase a home in rural areas. The USDA has a minimum credit score of 580 for its loans, but there's flexibility to go lower in certain situations.\nIf your credit score is in great shape, you may have several different loan types from which to choose. But if your credit score is considered bad or fair, your options may be limited. END
 TITLE: What Credit Score Do I Need to Buy a House? CONTENT: How Your Credit Score Affects Mortgage Rates\n--------------------------------------------\nYour credit score plays a role in determining the interest rate and payment terms on a mortgage loan. That's because lenders use what's called a risk-based pricing model to determine loan terms.\nThe more likely you are to pay your bills on time, based on your credit history, the lower your interest rate may be. With a less-than-stellar credit score, however, you may end up paying more.\nFor example, let's say you're hoping to get a mortgage loan for $250,000 over 30 years. If you have great credit and qualify for a 4% interest rate, your monthly payment would be $1,371 (excluding property taxes, homeowners insurance and private mortgage insurance), and you'd pay a total of $243,560 in interest over the life of the loan.\nBut if your credit needs some work and you qualify for a 5% interest rate instead, that increases your monthly payment to $1,446 and your total interest burden to $270,560—a difference of $27,000.\nMortgage lenders don't just look at your credit score when determining your rate, though. They'll also consider your debt-to-income ratio (DTI)—how much of your gross monthly income goes toward debt payments—as well as your down payment and available savings and investments.\nSo while it's important to work on your credit score before you apply for a mortgage, avoid neglecting these other important areas of your financial situation. END
 TITLE: What Credit Score Do I Need to Buy a House? CONTENT: Can You Get a Mortgage With a Bad Credit Score?\n-----------------------------------------------\nIt's possible to get approved for a mortgage with poor credit. But just because you can, it doesn't necessarily mean you should. As previously discussed, even a small increase in your interest rate can cost you tens of thousands of dollars over the length of a mortgage loan.\nIf you're planning on buying a home and you have bad credit, here are a few tips that can help you potentially score a decent interest rate:\n*   Consider applying for an FHA loan, which you can get with a credit score as low as 500—though to get approved with a score below 580, you'll need a 10% down payment.\n*   Make sure you have a large down payment, plus a good amount of cash reserves beyond that.\n*   Work on paying down other debts to reduce your DTI.\n*   Consider asking someone with good or exceptional credit to apply with you as a cosigner.\nThere's no guarantee that these actions will help you qualify for a mortgage loan with good terms, but they can improve your odds. END
 TITLE: What Credit Score Do I Need to Buy a House? CONTENT: How to Prepare Your Credit for a Mortgage\n-----------------------------------------\nIf you're thinking about buying a home soon, it may be worth spending some time getting your credit ready before you officially begin the process. Here are actions you can start taking now, some of which can improve your credit score relatively quickly.\n### Check Your Credit Score and Reports\nKnowing where you stand is the first step to preparing your credit for a mortgage loan. You can check your credit score with Experian for free, and if it's already in the 700s or higher, you may not need to make many changes before you apply for a preapproval.\nBut if your credit score is low enough that you risk getting approved with unfavorable terms or denied altogether, you'll be better off waiting until you can make some improvements.\nWhether or not your credit is ready for a mortgage, get a copy of your credit reports to check for potential problems or concerns. You can get a free copy of your credit report every 30 days from Experian or from each of the three national credit reporting agencies every 12 months at AnnualCreditReport.com.\nOnce you have your reports, read through them and watch for items you don't recognize or are outright inaccurate or fraudulent. If you find any inaccuracies, you can dispute them with the credit reporting agencies. This process can take time, but it can also improve your score quickly if it results in a negative item being removed.\n### Pay Down Debt\nPaying off other debts can not only lower your debt-to-income ratio, but it can also help improve your credit score. That's especially the case if you have credit card debt.\nYour credit utilization rate—how much credit card debt you have in relation to your total available credit—is an important factor in your credit score. While many credit experts recommend having a credit utilization of 30% or less, there is no hard-and-fast rule—the lower, the better.\nBecause your credit utilization rate is calculated each month when your credit card balances get reported to the credit bureaus, your credit score could respond quickly if you pay down high credit card balances.\n### Avoid Applying for New Credit\nVirtually every time you apply for credit, the lender runs a hard inquiry on your credit report. In most cases, you'll see your credit score drop by five points or fewer with one inquiry, if at all. But if you have multiple inquiries in a short period, it could have a compounding effect and lower your credit score even more.\nAlso, adding new credit increases your DTI, which is a crucial factor for mortgage lenders.\n### Consider Waiting\nIf your credit report includes some significant negative items, such as a bankruptcy, collection account or repossession, it may take more time for your credit score to recover than from high credit card balances or one late payment.\nWhile it may not be ideal to wait to buy a home, taking some time to allow your credit history to get back on track could save you a lot of money. It can also allow you to build up a more substantial down payment, which will likely boost your approval odds. END
 TITLE: What Credit Score Do I Need to Buy a House? CONTENT: Think About More Than Just the Loan Terms\n-----------------------------------------\nA mortgage is a long-term financial commitment. But getting into a home with less-than-perfect terms now can still make sense in certain situations.\nIf you live in an area where a mortgage payment would be cheaper than what you pay in rent, for example, even a loan with a slightly higher interest could save you money in the short term. And if owning your own home improves your overall quality of life, that could be worth paying a little more.\nAnd remember, you're not stuck with your first 30-year mortgage. As you continue to work on improving your credit, you may be able to refinance your loan down the road and get the better terms you're seeking. END
 TITLE: Student Loan Debt Reaches Record High as Most Repayment Is Paused CONTENT: All types of debt have seen significant change during the pandemic—for example, credit card debt decreased significantly while mortgage borrowing increased at record levels—but student loans saw the greatest change of any debt. From 2015 to 2019, student loan debt grew at an average rate of just under 6% per year—making it one of the slowest-growing consumer debts. Since 2019, however, the overall student loan balance increased by 12%—the largest annual growth rate of any debt type.\nTotal student loan debt in the U.S. reached a record high of $1.57 trillion in 2020—an increase of about $166 billion since 2019. And while debt is up 12%, the total number of accounts saw little growth (+0.3%), showing that it's not necessarily new borrowing driving the debt increase, but new borrowing on top of existing debt not being paid off. In fact, as of Q3 2020, 72% of student loan accounts were reported as in forbearance or deferral, according to Experian data. Compared with the same period in 2019, that's an increase of 37 percentage points.\nSource: Experian END
 TITLE: Student Loan Debt Reaches Record High as Most Repayment Is Paused CONTENT: Student Debt in Forbearance Doubles During Pandemic\n---------------------------------------------------\nAs noted, the number of loans in forbearance or deferral has reduced student loan repayment and contributed to total balances rising substantially. Student loan debt not in repayment spiked 114% in 2020, while the total number of accounts with this status doubled, growing 104%, according to Experian data.\nOverall, the 72% of accounts in forbearance or deferral in 2020 represents nearly $1.1 trillion worth of paused student loan debt—that's a $584 billion increase since 2019.\nSource: Experian END
 TITLE: Student Loan Debt Reaches Record High as Most Repayment Is Paused CONTENT: Individual Student Loan Balances Reach Record High\n--------------------------------------------------\nAs many consumers aren't actively paying down their student loans, individual balances grew by 9%, or over $3,000 per consumer, to a record high of $38,792, according to Experian data.\nThis rate of increase—while not as significant as the overall balance growth—was still slightly higher than the average 6% spike in individual balances seen from 2015 to 2019.\nSource: Experian END
 TITLE: Student Loan Debt Reaches Record High as Most Repayment Is Paused CONTENT: Average FICO® Score Among Student Loan Borrowers Increased\n----------------------------------------------------------\nThe average FICO® Score among consumers with a student loan account increased by seven points since 2019, according to Experian data. This improvement is in line with the national average, which also grew by seven points in the past year.\nSource: Experian\nIt's difficult to estimate what degree of influence—if any—the pandemic's student loan repayment pause has had on borrowers' credit scores. What is clear from the data, however, is that the pause in repayment—and the wide adoption of this non-payment option—has not (yet, at least) had a negative impact on consumer credit scores. This is a positive sign that student loan relief has been successful in protecting consumer finances during the economic downturn. END
 TITLE: Student Loan Debt Reaches Record High as Most Repayment Is Paused CONTENT: Consumers in All States Saw Increased Student Loan Debt in 2020\n---------------------------------------------------------------\nIn line with the increases in student loan debt seen across each generation and credit score range, consumers in all 50 states and the District of Columbia also recorded growth in their average individual balances in 2020, according to Experian data.\nGrowth across the states ranged from a high of 14% in Alaska to a low of 4% in North Dakota. In the majority of states—28—consumers saw their average balances grow by the national average of 9% or more.\nStudent loan borrowers in the District of Columbia had the highest debt burden in 2020, with an average balance of $60,651. They were followed by consumers in Georgia, California, Maryland and Virginia as the top five states with the highest balances. Notably, New York, which in 2019 had one of the top balances in the country, moved out of the top five in 2020.\nNorth Dakota—the state with the least growth—also had the lowest consumer student loan balance, of just $30,449.\nSource: Experian END
 TITLE: Debt Snowball Strategy: How Does It Work? CONTENT: What Is the Debt Snowball Method?\n---------------------------------\nThe debt snowball approach to paying off debt is primarily used for paying down high interest credit card debt, but it can be used to pay down any non-mortgage debt.\nWith this approach, you'll drop whatever monthly payments you're making down to the minimum amount due on all of your debts and move that extra freed-up cash to the credit card or loan with the lowest balance. Once that debt is paid off, you'll take the amount that you were paying toward it and apply it to the debt with the next lowest balance, and so on.\nYou'll continue this payment snowball process until you've eliminated the final credit card or loan balance included in your debt repayment plan.\nIf you have the budget, you may choose to add an extra payment on top of the debt snowball to really get the process rolling quickly. END
 TITLE: Debt Snowball Strategy: How Does It Work? CONTENT: How to Pay Off Debt Using the Snowball Strategy\n-----------------------------------------------\nTo give you an idea of how the debt snowball method works, here's an example based on some sample debts. This is what you'd pay if you continued making minimum payments on your existing debts:\nNow, let's say you employ the debt snowball method, tackling Credit Card No. 2 first, then Credit Card No. 1, and so on. Because you're snowballing each payment into the next debt, you don't actually need to pay anything more than what you're already paying to save time and money. Here's what the numbers look like if you don't add any extra payments.\nUsing the debt snowball method alone with no extra payments, you'll be debt-free more than five years earlier, and save more than $4,300 on interest.\nIf you can manage to pay extra, you'll become debt-free even sooner and save a lot more on interest charges. Here's what it looks like if you pay an extra $150 per month toward your debts.\nAs you can see, even if you can't manage to put any extra money toward your debt, using the snowball method will result in you paying off your debts more than five years sooner, and you'll save more than $4,300 in interest.\nBut if you can manage to put even a little extra money toward your payments each month, you'll become debt-free even faster and pay thousands less in interest. END
 TITLE: Debt Snowball Strategy: How Does It Work? CONTENT: Difference Between Debt Snowball and Debt Avalanche\n---------------------------------------------------\nAnother way to pay off your debt is by using the debt avalanche method. This approach rearranges the order in which you pay off debt by focusing on the loans or credit cards with the highest interest rates instead of the lowest balances.\nThe idea is that by eliminating the debts with the highest interest rates first, you'll save more money on interest. The actual difference, however, may not be a lot.\nUse the debt avalanche method if maximizing your savings is your top priority. But if you like the idea of getting rid of balances faster by focusing on the small ones first, use the debt snowball strategy. END
 TITLE: Debt Snowball Strategy: How Does It Work? CONTENT: When Is the Debt Snowball Method the Best Approach?\n---------------------------------------------------\nThere's no one-size-fits-all solution to paying off your debt. Where one method may work for a friend or family member, another may be a better fit for you. Here are some scenarios where the debt snowball method may be the best strategy to use:\n*   **You want to close some credit cards.** If you want to reduce your exposure to credit card debt and those balances are lower than other loans, the debt snowball method will help you pay them down faster. After that, you can close the account and keep yourself from racking up a balance again.\n*   **You're trying to reduce your debt-to-income ratio.** Your debt-to-income ratio (DTI) is an important factor when applying for new credit, especially with mortgage loans. By eliminating loans with lower balances, you'll remove them from the DTI equation entirely, making it easier to get approved for an auto loan or mortgage if you need it.\n*   **You're having a hard time staying motivated.** Paying off debt can be a monumental task, and it can be tough to stay on track if you go years without getting rid of any balances. By eliminating your lowest balances first, you'll start seeing progress sooner in the process, which can encourage you to stick to your plan. END
 TITLE: Debt Snowball Strategy: How Does It Work? CONTENT: Keep an Eye on Your Credit During the Process\n---------------------------------------------\nAs you work on paying down your debt, check your credit scores regularly to keep track of your progress, and also to make sure you don't hit any snags. If you're paying off debt to improve your credit and incorrect or fraudulent information gets added to your credit reports, it could halt your progress. And if you don't catch such things early, it could do more damage over time.\nEliminating debt and improving your credit history won't happen overnight. But if you're disciplined and stick to your strategy, you could save years' worth of time and interest charges, both of which you can spend working toward meaningful and exciting financial goals. END
 TITLE: The Debt Avalanche Method: How It Works and When to Use It CONTENT: The debt avalanche method eliminates your most expensive debts first, earning you returns on your money more quickly. Think of it this way: Say you have a student loan that carries a 6.8% interest rate annually. When you pay it off, your budget earns back the equivalent of that interest since you're no longer making payments on the debt.\nLoans and credit cards generally collect interest on top of the principal balance you've borrowed, or on top of the credit card charges you've made, as a fee for borrowing money. Taking on debt can end up being far more expensive than you initially planned, largely because of compound interest. That means that as interest is added to your debt, further charges are calculated based on the new, larger total. Your minimum payment might not be enough to cover all the interest that's accumulated over time.\nWhen you get rid of debts using the debt avalanche method, you stop the growth of compound interest and save the most in interest by attacking those debts with the highest interest first. END
 TITLE: The Debt Avalanche Method: How It Works and When to Use It CONTENT: How to Pay Off Debt Using the Avalanche Method\n----------------------------------------------\nHere's an example of what the debt avalanche method could look like. Let's say you have three credit card balances: $8,000 at 15% APR; $3,000 at 18% APR; and $5,000 at 20% APR.\nIf you make only the minimum payments on each debt—which are typically calculated as 1% to 4% of your outstanding balance—you could pay almost $9,000 in interest, and you wouldn't be debt-free for almost 12 years.\nUsing the debt avalanche, you'd pay off the $5,000 balance first, even though it's not the largest, because it has the highest interest rate. Once it's gone, you'd then apply its minimum monthly payment to the $3,000 balance with the 18% APR. Once the $3,000 balance is paid off, you'd apply its monthly payment to the final $8,000 balance.\nInterest savings will add up. You'll save almost $3,000 in interest alone by paying off your first $5,000 balance in 12 months, rather than the nearly 12 years it would take when paying only the minimum. END
 TITLE: The Debt Avalanche Method: How It Works and When to Use It CONTENT: Is the Debt Avalanche Better Than the Debt Snowball Method?\n-----------------------------------------------------------\nA drawback of the debt avalanche method, as you can see from our example, is that your first balance may feel overwhelming to eliminate. Paying off $5,000 to start might seem like a steeper hill to climb than paying off $3,000.\nThe debt snowball method is an alternative that can give you the opportunity to feel successful faster. This strategy recommends paying off your smallest balance first, no matter the interest rate. You won't see the same interest savings over time, but experiencing a quicker victory early could keep you going, and ensure you make it to the end of your debt payoff journey.\nIn our example, you'd pay off the $3,000 balance first because it's the smallest, then move on to the $5,000 balance, and finally the $8,000 balance. The $8,000 debt is the last one to tackle in both scenarios because it's the largest, and has the lowest interest rate. But using the debt snowball might give you more encouragement early on—and get you to the finish line.\nAn even bigger drawback of the debt snowball, though, is that you'll save less money. That makes the debt avalanche method a superior strategy in most cases.\nFor instance, tackling the $3,000 balance in 12 months rather than the nearly 10 years it would take while making minimum payments would save you about $1,370. That's a significant amount, but it's less than half what you'd save if you used the debt avalanche method at the first stage in the process. END
 TITLE: The Debt Avalanche Method: How It Works and When to Use It CONTENT: A Strategy That Gives You Control\n---------------------------------\nPerhaps the biggest upside to using a method like the debt avalanche is that it puts you in more control of your finances.\nWhen you make a plan, you'll familiarize yourself with the ideas of minimum payments, interest rates or payoff timelines. You'll do the work to gain an understanding of your debt, which is nearly as useful as making the payments to get rid of it. The debt avalanche method is a framework that can get you back in the driver's seat—and save you money along the way. END
 TITLE: Should I Pay Off Debt With the Highest Balance or Highest APR First? CONTENT: Consider Paying Credit Cards With the Highest Interest First\n------------------------------------------------------------\nYou'll typically save the most money if you get rid of high interest debt as quickly as possible. The longer interest accrues on a balance, the more you'll pay. Compound interest makes this even more of a challenge because it means you'll pay interest charges on top of your existing accrued interest each month.\nPrioritizing debt payoff based on interest rate is called the debt avalanche method. To begin, make a list of each of your debts, including their current balances, minimum monthly payments and interest rates, and sort them in order of interest rate.\nMake the minimum payment on each debt so that you never fall behind, but put as much money as possible toward the debt with the highest rate. Once you pay it off, you'll no longer have to make that minimum monthly payment, so you'll apply that amount to the next debt on the list.\nHere's an example. Let's say you have four debts:\n*   A student loan of $4,000 at 7%\n*   A credit card balance of $3,000 at 20%\n*   A second credit card balance of $6,000 at 18%\n*   A personal loan of $5,000 at 12%\nUsing the debt avalanche method, you attack the credit card with the 20% interest rate first, even though it has the smallest balance. If your minimum payment on that card was $120 per month, you'd pay extra toward it until it's gone.\nYou'd then apply that $120 to the credit card balance with the interest rate of 18%. Once that debt is paid off, prioritize the personal loan next, applying to it the minimum payment of $240 from your second credit card. In the meantime, your student loan at 7% would continue to accrue interest until it's paid off—but not as much as your higher-rate debts would have. END
 TITLE: Should I Pay Off Debt With the Highest Balance or Highest APR First? CONTENT: How Paying Off the Highest-Balance Debt Works\n---------------------------------------------\nIn some situations, though, paying off the debt with the highest balance may make the most sense.\nFor instance, perhaps you're focusing on debt payoff because you're hoping to qualify for a mortgage or other loan in the near future. Reducing your balances fast and limiting your credit utilization could become your top priority, rather than saving money on interest. In that case, you'd attack the highest balance rather than the debt with the highest rate.\nHere's why: Credit utilization is the amount of debt you carry when compared with your credit limit. It's the second most important factor in your credit score after payment history, which means it can have a significant impact on whether you'll get approved for a loan in the future.\nExperts recommend keeping your credit utilization to 30% or less at all times, but the lower, the better. So, if your credit limit is $10,000 on the card with a $6,000 balance, for instance, your credit utilization rate would be 60%. To qualify for a mortgage, your best bet would be to pay down that balance ASAP and get your credit utilization below 30%.\nAt the same time, your credit limit might be far higher on the card with the highest balance, meaning your credit utilization rate could be minimal. Take a look at all your cards' limits and focus on bringing down the balance on the card that's closest to its max.\nAnother time when paying off a high balance could be best? If your highest-balance debt carries a promotional interest rate for a certain period of time. Prioritize paying off that debt before the card's standard interest rate kicks in. END
 TITLE: Should I Pay Off Debt With the Highest Balance or Highest APR First? CONTENT: How to Choose a Payoff Strategy\n-------------------------------\nPaying down debt won't happen overnight, which means keeping yourself motivated should also be a consideration while choosing an approach.\nIf you think you'll enjoy making a dent in the biggest balance, that may keep you excited about continuing the payoff process—which, in turn, will make you more likely to reach your goal of debt freedom. Weigh the importance of saving money on interest with your likelihood of staying enthusiastic along the way. The best strategy is the one that is more likely to help you get your debt balances to zero. END
 TITLE: Where Can I Get a Personal Loan? CONTENT: Who Offers Personal Loans?\n--------------------------\nAlthough personal loans all work the same basic way—you borrow a fixed amount of money, then repay it in equal monthly installments—the financial institutions that offer them differ. Each has its own way of conducting business, unique qualification standards and rate structure, and benefits and drawbacks.\n### Banks\nConventional banks are for-profit financial institutions, and nearly all have branches that you can visit in person. In addition to providing deposit accounts such as credit and checking accounts, banks offer a variety of loan products, and personal loans are typically among them. To obtain a personal loan from a bank, you may be able to apply in person, over the phone or online.\nBecause banks are large financial institutions that often have long histories, obtaining a loan through one can feel comforting. If you already have accounts at the bank, or have borrowed money from it before with different loan types, you've formed a relationship. That can make it easier to get approved, and may result in a preferable interest rate.\nIn general, though, banks tend to have higher interest rates and stricter eligibility standards than other lenders, so if you're a newer customer you may be at a disadvantage. And if your credit scores aren't high enough, you may be denied with little explanation or assistance.\n### Credit Unions\nWhile similar to banks, credit unions are nonprofit financial institutions owned by their depositors, not by shareholders. They typically serve a specific audience, such as people in a certain city or area, profession, association or community group.\nTo apply for a personal loan at a credit union, you'll need to be a member or become one, which usually entails opening at least one deposit account. Credit unions typically have a physical storefront as well as an online presence, and personal loans are usually on their menu of products.\nSeeking a personal loan from a credit union comes with some significant upsides. Qualification is usually more forgiving than with conventional banks, and the interest rates are sometimes better than those you can find elsewhere. If you don't qualify for a loan from your credit union of choice, the credit union may work with you so you can qualify in the future. Support, financial education and assistance are all part of the credit union model.\nThere aren't many downsides to getting a personal loan from a credit union. One potential problem is that you may not be able to become a member at the one that offers loans with the lowest interest rates. If that happens, you'll have to seek another credit union or source of financing.\n### Online Lenders\nAs the name suggests, online lenders operate entirely over the internet. You can't enter a branch to talk with an employee. The focus is entirely on lending money rather than providing a wide array of financial services. In addition to mortgages, car loans and debt consolidation loans, almost all online lenders offer personal loans. To start the loan process with one of these companies, you'll complete and submit an application on the lender's website.\nA benefit of online lenders is that loans are their primary business. Personal loans are available to a wide variety of people, from applicants with poor credit to those with excellent credit. And if you want the money at the swiftest speed, online lenders win the race. Upon qualification, the funds may be at your disposal within minutes. It can take some banks and credit unions days or more.\nHowever, compared with banks and credit unions, online lending companies are relatively new. Some have only been in existence for a few years, and that may give you pause. Depending on the lender, customer service can be poor or virtually nonexistent. And while online lenders may qualify you when others won't, you could pay for it in the form of a prohibitively high interest rate. You may have been turned down from a bank or credit union for good reason. END
 TITLE: Where Can I Get a Personal Loan? CONTENT: What to Consider When Choosing a Lender\n---------------------------------------\nThere are some key factors you need to consider before deciding which lender to approach or personal loan to accept.\n*   **Interest rate**: All personal loans come with an interest rate. High rates will elevate the cost of the loan, so to save money, you'll want to get the lowest rate possible. An interest rate will usually be expressed as an APR (annual percentage rate), which includes the interest rate as well as other fees and costs. Most financial institutions that offer personal loans will publish the going rates as a range, such as 13.99% APR to 24% APR, so visit the websites of many different lenders to compare.\n*   **Credit scores**: Because qualification and interest rates are primarily dependent on your credit scores, you will want to know what your scores are before applying. FICO® and VantageScore® are the two most common credit scoring companies, and both produce credit scores ranging from 300 to 850. Higher numbers are predictive of lower credit risk. In general, credit scores in the mid-700s and above are considered good to excellent. Check your scores long before applying, so you can pursue the right loan for you.\n*   **Possible discounts**: Always contact the lender about ways you can lower the interest rate; discounts may be available. For example, some banks will give you a break on the rate if you have a checking account at the bank. Many lenders will reduce the rate if you enroll in automatic payments so the money is deducted from your checking account on the same day of every month, thus guaranteeing on-time payments. Still others will reduce a high rate after your credit score improves or you have made a certain number of on-time payments.\n> Find the best personal loans in Experian CreditMatch™. END
 TITLE: Where Can I Get a Personal Loan? CONTENT: How to Get Approved for a Personal Loan\n---------------------------------------\nIf you get rejected for a personal loan, don't take it personally. It's the lender's business decision. In fact, you should consider a denial as a sign that you need to improve your credit scores. If the only loan you can get comes with a stratospheric interest rate, you're probably better off turning it down.\nApproval for unsecured loans is largely based on your credit scores—which are calculated by taking the information found on your credit reports and inputting it into mathematical models. Therefore, the information on your credit reports is extremely important. To earn high scores, you'll need to have a history of paying your bills on time and carrying low debt compared with your credit limits. Using a variety of credit products and managing them responsibly will help, as will limiting the number of loan applications you send. Each time you apply for credit, a hard inquiry will be listed on your report, and an overabundance of them can have a negative impact on your score.\nIf you can wait to get your scores up, you'll be in a far better position to qualify for a low rate on a personal loan. Start sending your payments on time and drive credit card balances down. If you need to add credit history to your report, consider signing up for Experian Boost™† . With it, you can add your cell phone and utility payments to your credit report, so when you pay those on time, your scores will likely benefit.\nFinally, keep an eye on your credit reports, and make sure they're free of errors and fraudulent activity. Get a copy of your credit report and read it thoroughly. If you spot problems, dispute them immediately so they'll be removed. When they're off your report, your scores could rise, and you'll be more apt to get a personal loan that won't break the bank.\nPersonal Loan Calculator\n------------------------\n†The information provided is for educational purposes only and should not be construed as financial advice. Experian cannot guarantee the accuracy of the results provided. Your lender may charge other fees which have not been factored in this calculation. These results, based on the information provided by you, represent an estimate and you should consult your own financial advisor regarding your particular needs. END
 TITLE: Is the High Annual Fee on Your Rewards Credit Card Worth It? CONTENT: What Do Rewards Cards With an Annual Fee Offer?\n-----------------------------------------------\nRewards cards that have annual fees may charge anywhere from about $50 for entry-level rewards cards to over $500 for premium cards. Higher annual fees generally correspond with larger intro offers, more rewards and better benefits.\nWhat you may expect from the top rewards cards includes:\n*   More points or cash back on purchases\n*   Monthly or annual statement credits\n*   Free access to membership programs\n*   Status in loyalty programs\n*   Concierge services\n*   Higher limits and better coverage on insurance policies and purchase protections\n*   Extra perks on luxury travel\nMany premium cards also provide travel-related benefits by not charging foreign transaction fees, for instance, or by providing free access to airport lounges and loyalty status. However, credit card issuers can also respond to changing demand. As people scaled back their travel plans due to the coronavirus pandemic, several issuers let cardholders receive statement credits on purchases from non-travel categories, such as grocery stores, restaurants and gas stations.\nTake the temporary updates Chase made to the Chase Sapphire Reserve®, one of the most popular premium cards (and one that carries a $550 annual fee). In addition to broadening its statement credit criteria, several other changes were made to increase the value and benefit the card provides to cardholders who aren't currently able to travel. These included temporarily reduced renewal fees (either directly or through statement credits), additional bonus points on select purchases, and extra value when redeeming points to offset eligible recent grocery store, dining and home improvement store purchases. END
 TITLE: Is the High Annual Fee on Your Rewards Credit Card Worth It? CONTENT: When Are High Annual Fee Cards Worth Keeping?\n---------------------------------------------\nIf you choose to sign up for a card with a high annual fee, an important aspect of managing it is to make sure you're prepared to pay for it and to occasionally reevaluate whether it's worth keeping. Consider how much you expect to spend using the card and compare your earnings to what you could receive from a card that doesn't have an annual fee.\nor example, the Chase Sapphire Reserve® gives you 3 points per dollar on dining and travel, which is equivalent to 4.5% cash back when you receive a 50% bonus for redeeming your points for travel through the Chase Ultimate Rewards portal. But you usually only get 1 on other purchases—equivalent to 1.5% cash back. There are also many rewards cards that offer 1.5% cash back without charging an annual fee.\nRewards aside, consider which cardholder benefits you expect to use. For example, travel cards may come with a free Priority Pass membership, which gives access to certain airport lounges. While you might earn more on everyday purchases with a no-fee card, there's certainly a value in getting to step away from a crowded airport terminal and into a lounge that has free Wi-Fi, food and drinks.\nA Closer Look at Popular Cards With High Annual Fees\n----------------------------------------------------\nThere are a handful of premium cards, including co-branded options that are tied to a specific airline or hotel program. Here are two premium cards that provide a wider range of benefits.\n### Chase Sapphire Reserve®\nThe Chase Sapphire Reserve® has a $550 annual fee and rewards focused on dining and travel benefits. You can earn bonus points on travel and dining purchases, and $300 in an annual travel statement credit to help offset the annual fee. These credits can go toward a variety of travel purchases, including airfare, hotels, campgrounds, rental cars and toll bridges. You can also get $60 in annual DoorDash statement credits in 2020 and 2021 and earn 10 points per dollar on Lyft rides through March 2022.\nYou'll also receive a variety of benefits when booking travel with the card, including trip cancellation or interruption coverage, roadside assistance (with up to four $50 services each year covered) and primary coverage on rental cars for a collision or theft. After you enroll, you can also get complimentary access to airport lounges and up to $100 in statement credits every four years for a Global Entry or TSA Precheck membership.\nAs a cardholder, you'll receive 50% more value from your Chase Ultimate Rewards points when you redeem the points for travel (100 points is worth $1.50 rather than $1, for example) through the Chase Ultimate Rewards travel portal.\nOther Chase cards, such as the no-annual-fee Chase Freedom Unlimited®, offer a base rewards rate of 1.5 points per dollar on every purchase—more than you'd receive from non-bonus category purchases with the Chase Sapphire Reserve®. However, you can transfer points from other Chase accounts, including those that belong to your household members, to your Chase Sapphire Reserve® account. By combining the cards, you may be able to maximize your earnings opportunities and redemption value.\n### Platinum Card® from American Express\nThe Platinum Card® from American Express also has a $695 annual fee and dining and travel benefits. You can earn bonus points when buying flights directly from airlines, or paying for a prepaid hotel with American Express Travel. It's also best to redeem your Membership Rewards points for travel.\nWhile there's a steep annual fee, the card offers multiple statement credits including:\n*   $200 annual airline fee credit on incidental fees when you select one qualifying airline\n*   $300 Equinox Credit: Get up to $25 back each month on select Equinox memberships. Enrollment required.\n*   $200 Uber Cash credits for rides or Uber Eats ($15 a month and a bonus $20 in December)\n*   Up to $100 every 4 years for a Global Entry membership or every 4.5 years for TSA Precheck membership\n*   $179 CLEAR® Credit: Use your Card and get up to $179 back per year on your CLEAR® membership.\n*   $240 Digital Entertainment Credit: Get up to $20 in statement credits each month when you pay for eligible purchases with the Platinum Card® at your choice of one or more of the following providers: Peacock, Audible, SiriusXM, and The New York Times. Enrollment required.\nCardholders also get free access to American Express' global lounge collection and gold status in the Hilton Honors and Marriott Bonvoy loyalty programs. Terms apply.\nWhat About Less-Expensive Rewards Cards?\n----------------------------------------\nWhile premium credit cards come loaded with benefits and statement credits, there are also more moderately priced rewards cards. These may offer good rewards and a few perks, but they won't give you the luxury edge and major benefits that comes with premium cards:\n*   The Chase Sapphire Preferred® Card costs $95 a year. But you can earn 3 points per dollar on dining, 2 points per dollar on travel (1 point per dollar elsewhere), get 25% more value when redeeming points for travel through Chase's Ultimate Rewards portal and receive free primary coverage on rental car collision damage waivers.\n*   The Capital One Venture Rewards Credit Card also has a $95 annual fee. The card offers 2 points per dollar on every purchase and up to $100 in statement credits for a Global Entry or TSA Precheck membership every four years.\n*   The Blue Cash Preferred® Card from American Express has a $95 annual fee (after an introductory annual fee of $0 for the first year) and is one of the top grocery store cards. It offers 6% cash back on up to $6,000 in purchases at U.S. supermarkets each year (1% after that), along with 6% cash back on U.S. streaming service subscriptions, 3% U.S. gas stations and transit, and 1% elsewhere. Terms apply.\nThe same work goes into determining if a card is a good pick for your wallet. Consider the fee, rewards and benefits, and see if you'd be better off with a no-fee card or with a premium card.\nCheck Your Credit Before Applying\n---------------------------------\nThe best rewards cards often require good to excellent credit. Before applying, you can check your credit score for free through Experian. You can also review your credit report to find out what's helping or hurting your score, and get tips on what you can do to improve your score.\nIf you're still on the hunt for a credit card, use Experian CreditMatch™ to see card offers personalized to your credit profile. CreditMatch™ can also help you find a credit card with no annual fee. END
 TITLE: Is the High Annual Fee on Your Rewards Credit Card Worth It? CONTENT: or example, the Chase Sapphire Reserve® gives you 3 points per dollar on dining and travel, which is equivalent to 4.5% cash back when you receive a 50% bonus for redeeming your points for travel through the Chase Ultimate Rewards portal. But you usually only get 1 on other purchases—equivalent to 1.5% cash back. There are also many rewards cards that offer 1.5% cash back without charging an annual fee.\nRewards aside, consider which cardholder benefits you expect to use. For example, travel cards may come with a free Priority Pass membership, which gives access to certain airport lounges. While you might earn more on everyday purchases with a no-fee card, there's certainly a value in getting to step away from a crowded airport terminal and into a lounge that has free Wi-Fi, food and drinks. END
 TITLE: Is the High Annual Fee on Your Rewards Credit Card Worth It? CONTENT: A Closer Look at Popular Cards With High Annual Fees\n----------------------------------------------------\nThere are a handful of premium cards, including co-branded options that are tied to a specific airline or hotel program. Here are two premium cards that provide a wider range of benefits. END
 TITLE: Is the High Annual Fee on Your Rewards Credit Card Worth It? CONTENT: ### Chase Sapphire Reserve®\nThe Chase Sapphire Reserve® has a $550 annual fee and rewards focused on dining and travel benefits. You can earn bonus points on travel and dining purchases, and $300 in an annual travel statement credit to help offset the annual fee. These credits can go toward a variety of travel purchases, including airfare, hotels, campgrounds, rental cars and toll bridges. You can also get $60 in annual DoorDash statement credits in 2020 and 2021 and earn 10 points per dollar on Lyft rides through March 2022.\nYou'll also receive a variety of benefits when booking travel with the card, including trip cancellation or interruption coverage, roadside assistance (with up to four $50 services each year covered) and primary coverage on rental cars for a collision or theft. After you enroll, you can also get complimentary access to airport lounges and up to $100 in statement credits every four years for a Global Entry or TSA Precheck membership.\nAs a cardholder, you'll receive 50% more value from your Chase Ultimate Rewards points when you redeem the points for travel (100 points is worth $1.50 rather than $1, for example) through the Chase Ultimate Rewards travel portal.\nOther Chase cards, such as the no-annual-fee Chase Freedom Unlimited®, offer a base rewards rate of 1.5 points per dollar on every purchase—more than you'd receive from non-bonus category purchases with the Chase Sapphire Reserve®. However, you can transfer points from other Chase accounts, including those that belong to your household members, to your Chase Sapphire Reserve® account. By combining the cards, you may be able to maximize your earnings opportunities and redemption value. END
 TITLE: Is the High Annual Fee on Your Rewards Credit Card Worth It? CONTENT: What About Less-Expensive Rewards Cards?\n----------------------------------------\nWhile premium credit cards come loaded with benefits and statement credits, there are also more moderately priced rewards cards. These may offer good rewards and a few perks, but they won't give you the luxury edge and major benefits that comes with premium cards:\n*   The Chase Sapphire Preferred® Card costs $95 a year. But you can earn 3 points per dollar on dining, 2 points per dollar on travel (1 point per dollar elsewhere), get 25% more value when redeeming points for travel through Chase's Ultimate Rewards portal and receive free primary coverage on rental car collision damage waivers.\n*   The Capital One Venture Rewards Credit Card also has a $95 annual fee. The card offers 2 points per dollar on every purchase and up to $100 in statement credits for a Global Entry or TSA Precheck membership every four years.\n*   The Blue Cash Preferred® Card from American Express has a $95 annual fee (after an introductory annual fee of $0 for the first year) and is one of the top grocery store cards. It offers 6% cash back on up to $6,000 in purchases at U.S. supermarkets each year (1% after that), along with 6% cash back on U.S. streaming service subscriptions, 3% U.S. gas stations and transit, and 1% elsewhere. Terms apply.\nThe same work goes into determining if a card is a good pick for your wallet. Consider the fee, rewards and benefits, and see if you'd be better off with a no-fee card or with a premium card. END
 TITLE: Is the High Annual Fee on Your Rewards Credit Card Worth It? CONTENT: *   The Chase Sapphire Preferred® Card costs $95 a year. But you can earn 3 points per dollar on dining, 2 points per dollar on travel (1 point per dollar elsewhere), get 25% more value when redeeming points for travel through Chase's Ultimate Rewards portal and receive free primary coverage on rental car collision damage waivers. END
 TITLE: Is the High Annual Fee on Your Rewards Credit Card Worth It? CONTENT: *   The Capital One Venture Rewards Credit Card also has a $95 annual fee. The card offers 2 points per dollar on every purchase and up to $100 in statement credits for a Global Entry or TSA Precheck membership every four years. END
 TITLE: Is the High Annual Fee on Your Rewards Credit Card Worth It? CONTENT: Check Your Credit Before Applying\n---------------------------------\nThe best rewards cards often require good to excellent credit. Before applying, you can check your credit score for free through Experian. You can also review your credit report to find out what's helping or hurting your score, and get tips on what you can do to improve your score.\nIf you're still on the hunt for a credit card, use Experian CreditMatch™ to see card offers personalized to your credit profile. CreditMatch™ can also help you find a credit card with no annual fee. END
 TITLE: How to Unfreeze Your Credit Report CONTENT: If you freeze your credit reports—which you have to do separately for each of the three major credit bureaus (Experian, Equifax and TransUnion)—you'll likely want to unfreeze your credit information in the future. The reasons can range from applying for a new credit card, getting a mortgage or signing up for a cell phone contract to buying a new car, applying for insurance or applying for a job where the employer wants to check your financial background.\nBecause you establish your credit freeze at each of the three credit bureaus individually, you will need to unfreeze them at each bureau as well.\nYou have two options for unfreezing your credit reports:\n*   **Temporary lift**: This allows creditors to check your file for a set length of time, then restores the freeze.\n*   **Permanent removal**: This leaves your reports open until you request another freeze.\nTo unfreeze your credit, you'll need to use the secure PIN, or personal identification number, that you received when you originally requested a freeze. In most cases, if you make the request online or by phone, the credit bureaus can lift a freeze in as little as 15 minutes, although the Federal Trade Commission gives them up to three business days. If you lose your PIN, you'll need to contact each bureau individually to either request a new PIN or permanently lift your freeze. END
 TITLE: How to Unfreeze Your Credit Report CONTENT: How Much Does It Cost to Unfreeze Your Credit?\n----------------------------------------------\nPrior to September 2018, state regulators controlled the fees charged for freezing and unfreezing credit reports. But thanks to a new nationwide law, the process of freezing is now simplified and free for all, no matter what state you reside in. END
 TITLE: How to Unfreeze Your Credit Report CONTENT: CreditLock for Experian Members\n-------------------------------\nIf you want the ability to lock and unlock your Experian credit report on the fly from your smartphone or Experian app without a PIN or a waiting period, Experian CreditWorksSM or Experian IdentityWorksSM members can do that through Experian CreditLock. Just like a credit freeze, CreditLock will prevent potential lenders from accessing your credit report, and Experian will alert you if we detect attempts to access your credit file while it is in a locked state. END
 TITLE: How to Unfreeze Your Credit Report CONTENT: Online Credit Freeze Resources\n------------------------------\nFor more information and help with freezing and unfreezing your credit reports with the three major credit bureaus, check out these resources:\n*   Experian Freeze Center\n*   Equifax Credit Freeze Center\n*   TransUnion Credit Freeze Center END
 TITLE: Why Did My Credit Score Drop? CONTENT: You Have Late or Missing Payments\n---------------------------------\nYour payment history is the most important factor in your FICO® Score, the most widely used credit scoring model. It accounts for 35% of your score, and even one late or missed payment can have a negative impact. So, it's key to make sure you make all your payments on time.\nIf you are more than 30 days past due on a payment, credit issuers will report the delinquency to at least one of the three major credit bureaus, likely resulting in a drop in your score. Payments that become 60 or 90 days past due will have an even greater effect on your score..\nIf these delinquencies are not paid, the credit issuer may send your debt to a collection agency, and the collection account will be recorded on your credit report. Records of your late and missed payments remain in your credit file for seven years, while positive payment history on an open account can stay on file indefinitely (or 10 years if the account is closed in good standing). Be sure to make all your payments on time so the record of your strong credit behavior bolsters your score for years to come. END
 TITLE: Why Did My Credit Score Drop? CONTENT: You Recently Applied for a Mortgage, Loan or New Credit Card\n------------------------------------------------------------\nWhenever you apply for a new line of credit, lenders will request a copy of your credit report to determine your creditworthiness. They decide whether to lend to you by viewing characteristics like your payment history, credit usage and the types of accounts you currently hold.\nEach time you authorize someone other than yourself, such as a lender, to check your credit history, a [hard inquiry](') is recorded on your credit report and could slightly affect your score for up to two years.\nAs your credit profile matures, it's natural to accumulate hard inquiries. But if you apply for too much credit in a short period of time, it can negatively impact your scores and affect the likelihood that lenders will approve you for new credit.\nDepending on how many inquiries you already have, a new hard inquiry could cause your score to drop, but potentially only for a short period of time. And any effect on your credit score should disappear in about one year. END
 TITLE: Why Did My Credit Score Drop? CONTENT: Your Credit Utilization Has Increased\n-------------------------------------\nMaxing out your credit card could cause a quick drop in your credit score. Depending on your card's credit limit, making a large purchase or simply running up your balance can increase your credit utilization ratio, the second most important factor in calculating your FICO® Score. An increased credit utilization ratio can indicate to lenders that you are overextended and that, financially, you're not well-positioned to take on new debt.\nYour credit utilization ratio is calculated by adding all your credit card balances at any given time and dividing that sum by your total revolving credit limit. For example, if you typically charge about $2,000 each month, and your total credit limit across all your cards is $10,000, your utilization ratio will be 20%.\nYou should aim to keep your credit utilization ratio below 30%, and for the best scores, below 10%. So, if your total credit limit is $10,000, keep your balances below $3,000 at all times to help keep your score in good shape. END
 TITLE: Why Did My Credit Score Drop? CONTENT: One of Your Credit Limits Decreased\n-----------------------------------\nSimilar to maxing out your credit cards, having your credit limit decreased can increase your credit utilization ratio and negatively affect your credit scores.\nImagine, as in the example above, your total credit limit was $10,000 and you carried a balance of $3,000. In this case, your utilization ratio would be 30%. If a credit card issuer lowered your limit to $6,000, but your balance remained the same, your utilization ratio would change to 50%. This could cause your credit score to drop.\nCredit card issuers set initial credit limits based on factors including your income, current debt-to-income ratio, credit history and credit score. An issuer might lower your credit limit if, among other reasons, you haven't been using your card much or if you frequently miss payments or pay late.\nYou can request a credit limit increase from your current issuers or open a new credit card account if you're concerned that your credit limit is too low. But know that if your limit recently went down, an increase might be hard to come by, and it may be best to wait to request more credit until your score improves.\nRegardless of whether your credit limits are shrinking or your balances are increasing, keeping an eye on your credit utilization ratio will help you better understand your fluctuating credit score. END
 TITLE: Why Did My Credit Score Drop? CONTENT: You Closed a Credit Card\n------------------------\nThink twice before closing a credit card you don't use. Closing a credit card account will not only increase your utilization ratio, it may also reduce the length of your credit history—both of which can impact your credit score.\nWhen you cancel a credit card account, that credit limit is removed from your overall utilization ratio, which has the potential to lower your scores. Closing a credit card account you have had for some time can also shorten your average credit age, and that will factor into your credit score.\nThe length of your credit history counts for 15% of your FICO® Score, so a longer history is better for your scores. Keep in mind, however, that if your account is closed in good standing (meaning you made all your payments on time), it could remain on your credit report for up to 10 years.\nUnless the credit card has a high annual fee that you cannot afford or it tempts you to spend more than you should, it doesn't hurt to keep the account open to maintain your credit limit and length of credit history. END
 TITLE: Why Did My Credit Score Drop? CONTENT: There Is Inaccurate Information on Your Credit Report\n-----------------------------------------------------\nRegularly checking your credit reports is one of the best ways to ensure no inaccurate information shows up in your file. Although it's rare, mistakes happen, and it is possible that incorrect information on your credit report—such as inaccurate personal data or payment history—is causing your scores to drop.\nIf something in your report is inaccurate, it could be a result of a lender accidentally reporting the wrong information. It could also be a sign that you have fallen victim to identity fraud. If you see something you believe is inaccurate, dispute the information with all three credit bureaus as soon as possible. But keep in mind, some pieces of data can't be disputed, like credit inquiries, accurate birth dates and credit scores. END
 TITLE: Why Did My Credit Score Drop? CONTENT: You've Experienced a Major Event Such as Foreclosure or Bankruptcy\n------------------------------------------------------------------\nThe late payments that often lead up to a bankruptcy or foreclosure harm your credit scores—and the events themselves can make matters worse.\nBankruptcy is a legal process initiated by borrowers looking to get relief from debt payments, and it's the most harmful single event to a consumer's credit. Foreclosure is when your mortgage lender takes possession of your house, often following four consecutive months of missed payments, and is second only to bankruptcy in terms of credit harm.\nIn addition to damaging your credit score, either event can disqualify you from certain types of borrowing in the future. A mortgage lender may be unlikely to take you on as a borrower if you have a foreclosure in your past, for instance. A legitimate foreclosure mark on your credit report will stay there for seven years.\nThe amount of time a bankruptcy stays on a credit report depends on the type of bankruptcy filed. Chapter 7 bankruptcy, for instance, appears on your report for 10 years from the date you filed, while Chapter 13 bankruptcy appears for seven years. END
 TITLE: Why Did My Credit Score Drop? CONTENT: What Is a Good or Bad Credit Score?\n-----------------------------------\nMaintaining a good credit score has plenty of benefits, including potentially saving you a significant amount of money—and stress—over time. Good scores will help you qualify for more credit products at lower interest rates. Bad scores, on the other hand, may prevent you from qualifying for certain types of credit or may result in getting approved for credit products at higher interest rates, since your profile presents a bigger risk to the lender.\nCredit scores are divided into different scoring ranges. Many scoring models, including the FICO® Score, use a range of 300 to 850. In that model, scores above 800 are considered exceptional, while anything above 700 is typically considered good. Scores below 669 are considered to be fair or poor. In 2020, the average FICO® Score in the U.S. was 710, according to Experian data. END
 TITLE: Why Did My Credit Score Drop? CONTENT: Ways to Improve Your Credit Scores\n----------------------------------\nIf you're looking to improve your credit scores, these tips can help.\n*   **Pay your bills on time.** This is one of the most crucial steps to getting and keeping a good credit score. The best way to pay on time is to set up automatic payments so you won't miss a bill. But make sure you have enough money in the connected bank account to avoid an overdraft.\n*   **Minimize overall debt.** If possible, don't lean on credit to buy items you're not able to pay for in cash, or that you can't pay off by the end of the month. This keeps your payments manageable and your ongoing credit utilization ratio low. Your goal should be to bring your credit card balance to $0 at month's end.\n*   **Monitor your credit regularly.** There are many ways to check your credit score for free, including via Experian. Doing so can help you identify dips in your score quickly and course-correct if necessary. Free credit monitoring from Experian can help you keep tabs on both your FICO® Score and credit report, and keep you updated when there are any changes to your credit report.\n*   **Avoid applying for unnecessary credit cards.** Not only do some cards have pricey annual fees, but an abundance of cards might result in more spending than you can handle.\n*   **Practice responsible spending habits.** Setting up a budget—even a general one that categorizes your spending into a few overall buckets and doesn't require too much upkeep—can help you spend within your means over the long term. END
 TITLE: Why Did My Credit Score Drop? CONTENT: Handling a Dip in Credit Scores\n-------------------------------\nA drop in your credit score can be stressful, but it doesn't have to be permanent. There are ways to bring your score back up and to prevent another decrease in the future. Remember that credit scores are dynamic, and that you have the ability to improve yours with your own habits—an empowering truth that you can apply to other parts of your financial life too. END
 TITLE: What Is a Credit Freeze? CONTENT: When Should I Set Up a Credit Freeze?\n-------------------------------------\nIf you've been a victim of identity theft or credit fraud, or suspect you might be, you have more than one option. There are less-disruptive alternatives to a credit freeze (see below), including fraud alerts, but freezing your credit is one tool to consider.\nOther reasons to consider actions to protect your credit include:\n*   Signs of suspicious activity on your credit reports, such as new credit accounts or inquiries you don't recognize\n*   Unexplained bills or collection notices on your phone or mailed to your address\n*   Unauthorized withdrawals or cash transfers from your checking or savings accounts\n*   Notice that your personal information has been compromised in a data breach END
 TITLE: What Is a Credit Freeze? CONTENT: How Much Does a Credit Freeze Cost?\n-----------------------------------\nCredit freezes are free to set up at each of the national credit bureaus. You must contact each bureau separately to freeze its respective credit report, and to thaw it later.\nThe Experian Freeze Center explains how to freeze your Experian credit report online or by phone, and similar guidance is available from at TransUnion and Equifax. END
 TITLE: What Is a Credit Freeze? CONTENT: How to Freeze Your Credit\n-------------------------\nYou must contact each credit bureau separately to freeze your credit report with that company.\nWhen requesting your credit freezes, you must provide:\n*   Your Social Security number\n*   A copy of a photo ID\n*   Proof of address such as a recently postmarked utility bill\nYou can submit your proof of ID and address as digital files when submitting a credit freeze request online.\nWhen you activate your credit freeze, the bureau may supply or ask you to create a personal identification number (PIN) or password to use when lifting or reactivating your freeze. END
 TITLE: What Is a Credit Freeze? CONTENT: Does a Credit Freeze Affect My Credit Score?\n--------------------------------------------\nA credit freeze has no impact on your credit score or on your ability to qualify for loans or credit cards.\nBecause credit freezes prevent lenders from evaluating credit to process applications, they can hinder your ability to access new credit. You must thaw your credit before you apply for a loan or credit cards, or lenders will be unable to determine your creditworthiness and decide what kind of credit offer to make you. Failure to lift your credit freeze beforehand could mean delays in your credit applications.\nAside from preventing lenders from checking your credit, a credit freeze does not interfere in any way with:\n*   Your ability to use existing credit (credit cards, home equity lines of credit, other revolving lines of credit and so on)\n*   Your ability (and obligation) to make loan and credit card payments; our creditors will continue to report your activity to the credit bureaus\n*   Regular updates to your credit report, reflecting your credit usage and payments\n*   Access to your own credit scores or free annual credit reports\n*   Credit checks related to job applications, apartment rentals or insurance underwriting END
 TITLE: What Is a Credit Freeze? CONTENT: When Should I Unfreeze My Credit?\n---------------------------------\nYou should unfreeze your credit report anytime you plan to apply for credit, to give lenders access to your credit reports and credit scores. Be sure to lift your freezes at all three credit bureaus because lenders may work with any bureau (or all three) when checking your credit.\nThe same webpages you'd use to request a credit freeze can also be used to lift a freeze. You can also lift a freeze by phone, using the password or PIN linked to your freeze at each bureau.\nWhen you thaw your credit, you may have the option to either lift the freeze permanently or suspend it temporarily, or to grant one-time access to a particular creditor or specifying the duration of the suspension (an hour, a day or a week, for example). If you know only one lender will be checking your credit, you can request a one-time PIN instead and provide that PIN to the lender (just be sure the lender has the ability to enter a single-use PIN when they are accessing your credit). Policies vary by bureau, so make sure you understand your options are before you begin the process.\nWhen you enter your password or PIN online or by phone, your credit will be thawed within one hour. If you lose your password or PIN, the credit bureaus will need to verify your identity, which will delay the process. END
 TITLE: Do Library Fines Affect Your Credit Score? CONTENT: Why Library Fines Likely Won't Hurt Your Credit\n-----------------------------------------------\nBack in the day, forgotten library fines actually could show up on your credit report as an unwelcome surprise. But in 2016, the three national consumer credit reporting agencies—Experian, TransUnion and Equifax—agreed to change the types of public information that appear on credit reports. Among other reforms, the National Consumer Assistance Plan eliminated \"the reporting of debts that do not arise from a contract or agreement to pay,\" such as traffic tickets or fines. As a result, libraries no longer report this information directly to credit bureaus. If you believe you were reported to a credit bureau, take advantage of our free credit report.\nIs it a concern if the library sends your account to collections, though? Practically speaking, a library is unlikely to send a very small balance to a collection agency; it simply isn't worth the trouble. And if your account goes into collections for an amount less than $100, the collection account may appear on your credit report, but your credit score may not suffer much as a result. FICO® Score☉ 8, the most widely used version of your FICO score, ignores small-dollar \"nuisance\" collection accounts in which the original balance was less than $100.\nIf you are among the few library patrons whose overdue fines are in excess of $100, your credit may indeed be affected if the balance you owe is sent to a collection agency and the agency reports it to the credit bureaus. A collection account will appear as negative information on your credit report for up to seven years. An account in collections is considered delinquent and has the potential to lower your credit score significantly. END
 TITLE: Do Library Fines Affect Your Credit Score? CONTENT: How to Resolve Library Fines\n----------------------------\nStill, it's unlikely (though not impossible) that your unpaid library fines will make it to this point. Libraries themselves are trying to become less punitive as more readers turn to online information or digital booksellers like Amazon instead of risking fines, collections and the humiliation of running afoul of the system. The New York Times reports that libraries in Philadelphia, Los Angeles, San Diego, Chicago and Denver have adopted no-fee or amnesty policies in recent years. And at least one collection agency for libraries has moved to a \"gentle nudge\" policy that does not involve reporting the late fees to credit bureaus.\nOf course, every library system is different. If you've received a notice of overdue fines or you suspect you have unpaid fees, contact your local library. They may have an amnesty program in place or may be willing to accept an alternative arrangement, such as replacing a lost book with a gently used copy instead of a new one. If you're dreading the thought of runaway fees compounding year over year, take heart. Many library systems cap your fees at an affordable flat dollar amount or the price of the book itself.\nWhether or not you face a credit consequence for late fees or lost books, you may want to consider wiping out your debt regardless. Reminder notices, collections and old-fashioned guilt trips aren't fun to live with, and coming clean may lighten your conscience. Contributing to the health of your local public library by paying fines or replacing lost books is a good deed of citizenship as well. END
 TITLE: Do Library Fines Affect Your Credit Score? CONTENT: What Types of Public Records Do Affect Your Credit?\n---------------------------------------------------\nLibrary fees are probably not the only public information you'd rather not see pop up on your credit report. What about traffic and parking tickets or civil judgments? Take heart that none of these appear in your credit history. Other items that are not included in your credit report: Your income, bank accounts and their balances, investments and indications that credit applications have been denied.\nBankruptcies are now the only type of public record you might find in your credit report. A Chapter 7 bankruptcy appears as negative information on your credit report for up to 10 years; a Chapter 13 bankruptcy for seven. Bankruptcies affect your credit in a few different ways. Because a bankruptcy reflects poorly on your ability to manage credit, your credit score can drop severely after a bankruptcy filing. A bankruptcy on your credit report may also discourage lenders from offering you credit or may prevent you from getting good rates and terms on loans. END
 TITLE: Do Library Fines Affect Your Credit Score? CONTENT: Checking Out Ways to Improve Your Credit\n----------------------------------------\nAlthough chances are slim that library fines from your past will rise up and lay waste to your credit, worrying about this possibility—or a million other potential surprises—can still keep you up at night. If you're concerned about negative information showing up on your credit report, the best remedy is to check it. You can access your credit report from all three credit reporting agencies at AnnualCreditReport.com, or download your Experian credit report and FICO® Score based on Experian data for free at any time.\nIf you're getting ready to apply for a loan or credit card, you may be able to improve your credit score by factoring in on-time payments for utilities, phone bills and even streaming services for free using Experian Boost™† . END
 TITLE: Can You Check Your Credit Score Without a Social Security Number? CONTENT: Lenders typically require a Social Security number when you apply for a credit account. However, if you opened an account without an SSN and the lender reports its accounts to Experian, the account should still appear on your credit report, helping you establish credit. That's because Experian doesn't match information to a person's credit history using only the SSN: Experian matches information using all of the identification information provided by the lender.\nIf you are just starting to establish credit in your name, or if you have not used credit in quite some time, it is possible that you may not have a credit score even if you have a credit report. There are many different credit scoring models available for lenders to use. While some may be able to calculate a score with as little as one account appearing on your report, others may require multiple accounts to be reported for a certain period of time in order to generate a credit score. Credit scores often require three to six months of activity to be reported before the account will be included in score calculations.\nEven if you had an established credit history in the past, some credit score models may not be able to generate a score if there has been no activity on any of your accounts in the past several months. END
 TITLE: Can You Check Your Credit Score Without a Social Security Number? CONTENT: Can I Request a Credit Report With an Individual Taxpayer Identification Number (ITIN)?\n---------------------------------------------------------------------------------------\nAn Individual Taxpayer Identification Number (ITIN) is issued to an individual for tax purposes. These numbers, if used, would be recognized as an invalid Social Security number on your credit report.\nIf you do not have an SSN, you can submit your request for a free credit report in writing. Please include one copy of a government-issued identification card, such as a driver's license, state ID card or similar displaying your current address, and one copy of a current utility bill, bank statement, insurance statement or similar.\nPlease also include the following identification information:\n*   Your full name including middle initial (and generation - Jr., II, III)\n*   Social Security number\n*   Date of birth\n*   Complete addresses for the past two years\nSend your request to:\nExperian\nP.O. Box 9701\nAllen, TX 75013 END
 TITLE: Can You Check Your Credit Score Without a Social Security Number? CONTENT: What Is a Credit  Number (CPN)?\n--------------------------------------\nA Credit  Number (CPN) is a term coined by credit repair firms and other companies in an attempt to convince consumers that they can purchase a \"Social Security number replacement\" to use for the purpose of obtaining new credit. This may also be referred to as a Credit Profile Number or a Credit Protection Number.\nUnlike Social Security numbers and Individual Taxpayer Identification Numbers, a CPN is not issued by the Social Security Administration nor the IRS. Using these fictional and sometimes stolen numbers to apply for credit instead of your SSN may be considered a form of identity theft and fraud. END
 TITLE: Can You Check Your Credit Score Without a Social Security Number? CONTENT: How Can I Get or Replace a Social Security Card?\n------------------------------------------------\nIf you have lost your Social Security card or need a new one due to a name change, you will need to contact the Social Security Administration to request a replacement. You can do so either online (in most states), through the mail or by going to your local SSA office. Be prepared to provide proof of citizenship (a U.S. birth certificate or passport) and\/or proof of identity, such a driver's license or state-issued identification card.\nIf you are an adult and are requesting a Social Security number or card for the first time, the process may be somewhat different. You can read more about how to do this on the Social Security Administration website. END
 TITLE: Can You Check Your Credit Score Without a Social Security Number? CONTENT: Ordering Your Credit Report and Credit Score\n--------------------------------------------\nYou can order your free Experian credit report and your free credit score from Experian online anytime. You can also request your credit report by calling 888-EXPERIAN (888-397-3742).\nIf you do not have a Social Security number, you may be asked to send your request in writing, along with proof of your identity, such as a copy of your driver's license and a utility bill or bank statement. Send your request to:\nExperian\nP.O. Box 9701\nAllen, TX 75013\nWhen you order your credit report from Experian by phone or by mail, a credit score will be included.\nYou can also request a free copy of your credit report from each of the three credit reporting companies at AnnualCreditReport.com, but you will need to enter a Social Security number. Through at least April 20, 2022, Experian, TransUnion and Equifax are offering free reports weekly to all U.S. consumers through this website. END
 TITLE: Do Parking Tickets Affect Your Credit Score? CONTENT: A credit report is a record of how well you manage debt, including information related to accounts such as loans and credit cards.\nAt one time, information from public records, such as tax liens, civil judgments and parking tickets, also appeared on credit reports. But today, the three major credit bureaus (Experian, TransUnion and Equifax) no longer include public record information on credit reports, with the exception of bankruptcy.\nWhile parking tickets won't appear on your credit reports or directly affect your credit scores, an unpaid parking ticket that's been sent to a collection agency does have the potential to affect your credit. Most modern credit scoring models ignore the collection account if the original ticket amount is less than $100 (more on that later), but parking tickets can easily exceed this amount and there's no guarantee your potential lenders will use a scoring model that ignores these small accounts. That's why it's a good idea to take care of unpaid parking tickets before they're sent to collections no matter the amount. END
 TITLE: Do Parking Tickets Affect Your Credit Score? CONTENT: How Collections Impact Your Credit\n----------------------------------\nCollection accounts remain on your credit report for seven years from the original delinquency date (the date your account became 30 days past due). They are considered part of your payment history, which has the single biggest influence on your FICO® Score☉ . However, the effect collections have on your credit can vary based on the credit scoring model being used and the amount of the unpaid collection.\nPaying off a collection account may or may not improve your credit score depending on the credit scoring model that is used. The newest versions of the FICO® and VantageScore® credit scores—FICO® 9, VantageScore 3.0 and VantageScore 4.0—ignore collection accounts with a zero balance, so paying off such accounts could improve these scores. But older credit scoring models, including some used by mortgage and other lenders, do not ignore paid collection accounts. Paying off collection accounts won't affect scores calculated with these models.\nThe FICO® Score 8—a scoring model that's widely used by lenders—does not ignore paid-off collection accounts. However, it does ignore small-dollar \"nuisance\" collection accounts in which the original balance was less than $100. Of course, parking tickets in some cities routinely exceed this amount. For example, in New York City, you can get a $115 ticket for parking too close to a fire hydrant, double parking or parking in a bike lane, among other offenses. Park in a disabled parking space in Los Angeles County without a permit, and you can expect to shell out a whopping $330.\nNo matter how much your original parking ticket cost, it's always wise to pay off a collection account, but doing so won't remove the account from your credit report any faster. The good news: As collection accounts age, their impact on your credit score will diminish until they are ultimately removed from your credit reports entirely.\nTo see whether a collection account has affected your credit score, you can check your FICO® Score from Experian for free. The score you'll see is the FICO® 8 version, in which even paid collections can negatively affect your score. If your FICO® 8 score is good, your FICO® 9, VantageScore 3.0 and VantageScore 4.0 credit scores, which ignore paid collections, are likely to be as good or better. END
 TITLE: Do Parking Tickets Affect Your Credit Score? CONTENT: How to Resolve Unpaid Parking Tickets\n-------------------------------------\nTo resolve an unpaid parking ticket, look over your ticket for the agency that issued it to find out what you need to do. It may have been issued by a university law enforcement agency or local police, for instance. Contact them or explore their website to learn more about how to pay an unpaid traffic ticket.\nEven if your account has been sent to collections, contacting the agency that issued the ticket is the best place to start. Depending on your financial situation, you may be allowed to set up a payment plan for the ticket or negotiate a lower payment amount. This can make it easier to pay if your original ticket amount has multiplied due to fines, late fees and other penalties. END
 TITLE: Do Parking Tickets Affect Your Credit Score? CONTENT: What Type of Public Records Affect Your Credit?\n-----------------------------------------------\nAlthough public record information on civil judgments, tax liens and parking tickets won't show up on your credit report, bankruptcies will—and they can have a severe negative impact on your credit score.\nA Chapter 7 bankruptcy stays on your credit report for 10 years from the date of filing; a Chapter 13 bankruptcy stays on your credit report for seven years. Both types of bankruptcies are likely to affect your credit scores, as well as lenders' decisions about your creditworthiness. Having a bankruptcy on your credit report can make it more difficult to get approved for loans or could mean higher interest rates even if you are approved. END
 TITLE: Do Parking Tickets Affect Your Credit Score? CONTENT: Take Action Before Parking Tickets Affect Your Credit\n-----------------------------------------------------\nA parking ticket may seem like a minor inconvenience, but a parking ticket you ignore could become a major hassle. Depending on state and local laws, your driver's license could be suspended, you might not be able to register your car, your vehicle could be \"booted\" or impounded, or a warrant might even be issued for your arrest.\nIf a collection account related to a parking ticket shows up on your credit report, there are still ways to offset its negative impact on your credit score. Bring any other late payments current and make all future payments on time (consider setting up autopay to keep from missing a due date). Paying down debt, maintaining a low credit utilization rate and signing up for Experian Boost™† , a free service that can add on-time utility, streaming service and cellphone payments to your credit history, can also help improve your credit score. END
 TITLE: How Does a Credit Score Simulator Work? CONTENT: How Your Credit Score Is Calculated\n-----------------------------------\nCredit scoring models use sophisticated mathematical algorithms to calculate credit scores based on a credit report from one of the three national credit bureaus (Experian, TransUnion or Equifax). Each credit report reflects your credit history as reported by the creditors you've worked with, including your current and past debts and our record of making payments on them. FICO® and VantageScore®, which produce the most widely used consumer credit scores, generate most scores using a scale of 300 to 850. In this range, higher scores indicate lower risk of missing debt payments.\nCredit scores from different sources can vary considerably for a number of reasons:\n*   The contents of your credit reports change as you use credit cards, make payments and open new accounts.\n*   Various scoring models calculate scores differently. A 650 FICO® Score 8 is not the same as a 650 VantageScore 3.0, for instance, so it's important to know which scoring system is being used to determine (or simulate) your credit score.\n*   Different versions of the same credit scoring model can generate different scores. Lenders (and simulators) may use any of multiple versions of a scoring model, each of which yields somewhat different scores.\nWhile the specific calculations used to determine (or simulate) your credit score vary, the FICO® Score and the VantageScore systems look for patterns of credit behavior, and similar good habits promote higher scores on both systems.\nWhile credit scores are calculated somewhat differently, there are some basic credit factors that can reliably help you improve your scores, and score simulators can help you understand how those factors interact. According to both FICO® and VantageScore, those factors are:\n*   **Timely payments**: Paying your credit bills on time, every month, is the single most important thing you can do to build a good credit score. Conversely, going more than 30 days overdue on just one loan or credit card payment can have a major negative effect on your credit score. Payment history is responsible for about 35% of your FICO® Score.\n*   **Moderate balances**: Your debt balances have the potential to affect your credit scores, so it's important to keep a close eye on them. The percentage of revolving credit (such as credit cards) you're using compared with your credit limits is known as your credit utilization ratio. If that figure exceeds about 30%—on any individual card or when you divide the sum of all your balances by the sum of all your borrowing limits—the negative effect it could have on your credit score is more exaggerated. The amounts you owe on your accounts is responsible for about 30% of your FICO® Score.\n*   **Track record**: Lenders believe experience counts, so people with longer credit histories tend to have a higher credit score than more recent arrivals to the credit marketplace (all other factors being equal). Age of your credit accounts contributes about 15% of your FICO® Score.\n*   **Variety of credit**: A combination of credit cards and one or more installment loans, such as a student loan, car loan or home mortgage, shows lenders that you can handle a variety of credit types responsibly, and could help you credit scores. Credit mix is responsible for about 10% of your FICO® Score.\n*   **Responsible borrowing**: Your credit scores may take a hit whenever you apply for or accept a new loan or credit account. If you keep up with your bills after assuming new debt, however, scores tend to rebound within a few months. New credit accounts make up about 10% of your FICO® Score.\nCredit scores can take a major hit if severe negative information is added to your credit reports, including a bankruptcy, foreclosure or repossession of a financed vehicle. These events remain on your credit reports for seven to 10 years, although their negative impact on your credit scores lessen over time. END
 TITLE: How Does a Credit Score Simulator Work? CONTENT: What Credit Score Simulators Can and Can't Do\n---------------------------------------------\nCredit score simulators can help you see, in broad strokes, how different decisions tend to influence credit scores. Simulators that let you compare scenarios only consider one action at a time so, because, multiple actions influence your credit score—making purchases, paying down balances, making loan payments, etc.—no simulator can predict your future score with certainty, even one that begins its approximations using your actual credit score. END
 TITLE: How Does a Credit Score Simulator Work? CONTENT: When Does It Make Sense to Use a Credit Score Simulator?\n--------------------------------------------------------\nCredit score simulators let you compare the consequences of different actions in a general way. If you're considering taking on a mortgage, for instance, a simulator can help you see how taking on that new debt could affect your credit score.\nPerhaps more important, a simulator can give you an idea how different credit-use strategies can help you raise your credit score before you submit a mortgage application. Paying down a credit card with a high utilization ratio is likely to benefit your score more than paying off one with low utilization, for instance. On the other hand, making early payments on your loans may save you some interest charges, but it might not have much effect on your credit score at all.\nCredit score simulators can help you gain a greater understanding of the factors that influence credit scores and how they interact with one another. Consulting simulators to help think through credit decisions can be a useful exercise, along with regularly checking your credit reports and monitoring your credit scores. You can get a free copy of your credit reports from all three major credit bureaus through AnnualCreditReport.com. You can also check your credit report and see your FICO® Score 8 based on your Experian report for free directly through Experian. END
 TITLE: Why Credit Scores Could Drop After Paying Off Credit Cards CONTENT: Why Did My Credit Score Drop After I Paid Off a Credit Card?\n------------------------------------------------------------\nYour score could have taken a dive after paying off a credit card if you closed that credit card when the balance hit zero. While paying off and then closing the card may have been your goal all along, the action could actually hurt your score. This is why it's usually best to keep credit card accounts open even if you don't use them frequently. (More on that below.)\nIf you close a credit card, your credit utilization ratio will likely increase. That's the proportion of available revolving credit that you're using at any one time. Experts recommend keeping utilization below 30% to avoid damaging your scores, and in the single digits to maintain the highest credit score possible. Because closing a card will reduce the amount of available credit you have, your scores could take a hit.\nFor example, let's say you have three credit cards that have a combined credit limit of $12,000. You pay off the balance on one of the cards and close it, bringing your combined limit down to $4,000. If you have a $1,500 balance across the other two cards, and you maintain that balance after closing the third card, your total credit utilization will climb from 12.5% to 37.5%.\nIn this case, it would be better to keep the third card open but use it sparingly so that you can benefit from its credit limit without adding to your debt. END
 TITLE: Why Credit Scores Could Drop After Paying Off Credit Cards CONTENT: Why Hasn't My Score Changed After Paying Off Credit Cards?\n----------------------------------------------------------\nYour score won't get an immediate update once you pay off credit cards. That can be a disappointment when you've put a lot of effort into cutting down your balance. But all other things being equal, you will likely see an improvement in a relatively short period of time.\nCredit card issuers typically report new information to the credit bureaus, including Experian, after the end of your billing cycle. So if you pay off a balance on April 10 but your billing cycle ends on April 30, the credit bureaus won't receive that information until at least three weeks after you've made the payment.\nThe credit scoring models (FICO® and VantageScore®) may not update your credit score immediately so that they can also take note of whether you've simultaneously taken on more debt, which would also be reflected in your credit score. All in all, allow for at least one to two months after paying off a balance for your credit score to be recalculated. END
 TITLE: Why Credit Scores Could Drop After Paying Off Credit Cards CONTENT: Should I Close an Unused Credit Card After Paying It Off?\n---------------------------------------------------------\nIn the short term, closing an unused credit card account will typically cause a drop in your score due to the change in your credit utilization. On the positive side, if you close your account in good standing (with no late payments), your account will remain on your credit report for 10 years, and you'll continue to benefit from that past positive payment history.\nEven if closing an account hurts your credit, your score will likely rebound over time if you pay all bills on time across your other credit accounts and don't take on new debt. This can be a relief if you feel that closing the credit card is the best way to prevent you from accumulating more debt. You may also choose to close a card if it comes with a high annual fee that you can't afford or would rather not pay. END
 TITLE: Why Credit Scores Could Drop After Paying Off Credit Cards CONTENT: Other Reasons Why Your Credit Score May Have Dropped\n----------------------------------------------------\nWhile paying off credit cards often leads to a score increase, other credit activity could counteract those gains, or result in a drop in your score while you're waiting for the credit card issuer to report your paid-off debt to the credit bureaus.\nFor example, a late or missed payment on another credit card or loan will have a big impact on your score. That's because payment history is the most important credit scoring factor, accounting for 35% of your FICO® Score☉ . The delinquency's effect on your score increases as time goes on, so a payment that's 90 days late has a greater impact than one that's 30 days late.\nApplications for new credit, such as a private student loan, mortgage, credit card or car loan, can also cause a brief dip in your score. These applications create [hard inquiries](') on your credit report, which means a lender has requested access to your credit file to evaluate your creditworthiness. Hard inquiries typically lower your scores less than five points and can stay on your report for two years. END
 TITLE: Why Credit Scores Could Drop After Paying Off Credit Cards CONTENT: Keep Tabs on Your Credit to Understand Changes\n----------------------------------------------\nYour score may also drop if there is an error on your credit report, such as an inaccurately reported late payment from your credit card issuer. It's important to regularly monitor your credit report so you can take note of any updates to your accounts that could affect your score—and to recognize, and take action on, any inaccuracies that could negatively impact it. END
 TITLE: What Is the Best Way to Get a Credit Freeze Removed? CONTENT: How to Unfreeze Your Credit\n---------------------------\nWhen you enter the PIN at Experian's Security Freeze Center, you can lift a credit freeze online immediately. You also can call 888-EXPERIAN (888-397-3742) and provide the PIN to lift the freeze from your credit report. If you lost your PIN, Experian will need to reissue one.\nGetting a new PIN or password from the credit bureaus requires submitting the same proof of identity information you provided when setting up the security freeze: copies of a photo ID and a recent piece of mail, such as a utility bill or bank statement (as proof of address), plus your Social Security number. END
 TITLE: What Is the Best Way to Get a Credit Freeze Removed? CONTENT: Is It a Good Idea to Permanently Unfreeze Your Credit?\n------------------------------------------------------\nIt's necessary to unfreeze your credit reports anytime you want to enable someone to run a credit check on you—such as when you apply for a loan or credit or fill out a rental application with a landlord. It's quick and easy to remove a freeze altogether, and your decision whether to do so or not largely depends on why you put a credit freeze in place to begin with.\nIf you froze your credit purely as a precaution, or because you knew there would be an extended stretch of time when you would not be applying for credit or otherwise needing to grant access to your credit reports, then it's probably fine to lift the freeze permanently. If you applied a freeze because you knew or strongly suspected your Social Security number or other personal information had been stolen or misused, then it might make more sense to make your credit thaw temporary rather than permanent.\nWhen you use your PIN at the Experian Security Freeze Center webpage, the Experian automated phone system, or the equivalent resources at the other bureaus, you'll be given several options, including removing the freeze permanently or suspending it temporarily in a couple of different ways:\n*   **Allow one-time access to your credit report.** If you want to authorize one specific creditor (or landlord, utility company or other entity) to use your Experian credit report, you can obtain a single-use PIN that gives them access to the file and then expires, without actually lifting the credit freeze.\n*   **Suspend the freeze for a set time period.** If you are shopping for credit and submitting applications to multiple lenders, you can lift the credit freeze for a specific number of hours or days to give all the creditors a chance to check your credit report. Since you likely cannot know which credit bureau or bureaus a given lender uses for its credit checks, it's wise to unfreeze your credit reports at all three bureaus when shopping for credit.\nWhen you use your PIN to unfreeze your credit, your credit file becomes accessible within one hour. If you submit a request by mail, the freeze must be lifted within three business days of receiving the request.\nRemoving a credit freeze, temporarily or for good, is easy. Keep track of your PIN or password, and you'll be able to thaw your credit quickly whenever you need to. END
 TITLE: Does a Credit Freeze Hurt Your Credit Score? CONTENT: How Does a Credit Freeze Work?\n------------------------------\nFreezing your credit is something you can do to help prevent identity thieves or other fraudsters from securing credit in your name. A credit freeze blocks access to your credit reports, and to credit scores based on data in those reports. Because checking your credit report and credit score is typically the first step in processing any credit application, having credit freezes in place at all three credit bureaus (Experian, TransUnion and Equifax) is an effective way to stop unauthorized credit accounts.\nCredit freezes also block authorized access to your credit reports, however, so they can complicate the processing and approval of your legitimate loan or credit card applications.\nThe national credit bureaus will activate (and deactivate) a credit freeze for free upon request. You must contact each bureau separately to freeze its respective credit report; when you do so, you'll be assigned a PIN or password to use when requesting removal of the freeze.\nIf you freeze your credit reports, you'll need to unfreeze (or \"thaw\") them for lenders to be able to process your legitimate credit applications. You'll also have to remove a freeze to grant access to landlords, cellphone providers, insurance companies, car rental agencies and other nonlender parties that perform credit checks as part of their business practices.\nAs long as you have your PIN for each of the credit bureaus, you can request removal of your credit freezes by phone and have them lifted within one hour. You can remove the freezes permanently or request a temporary suspension of the freeze for a specified number of hours or days. If you lose your PIN, you still can have the freeze removed or suspended, but the process will take longer. END
 TITLE: Does a Credit Freeze Hurt Your Credit Score? CONTENT: Can a Credit Freeze Affect Getting Approved for Credit?\n-------------------------------------------------------\nIt's important to understand that credit freezes prevent access to your credit reports, but they don't affect tracking activity on current credit accounts. Payments on your existing loans and credit accounts will continue to be reported whether or not a credit freeze is in effect, so timely payments and careful use of credit will continue to benefit your credit during a freeze. By that same token, late or missed payments and excessively high credit card balances will damage your credit even if a credit freeze is in place.\nA credit freeze doesn't change your ability to qualify for a loan or credit card, but it can be an obstacle to getting your application approved: Unless you unfreeze your credit before you submit your application, the lender will not be able to use your credit report to judge your qualifications as a borrower.\nLenders cannot use a credit freeze as grounds for denying your application, but they also are not obligated to follow up with applicants whose credit reports are inaccessible. Setting aside your application technically isn't the same as denying it, but the end result could be the same for you: You won't get the credit in question, even if you're qualified for it based on your scores and credit history. END
 TITLE: Does a Credit Freeze Hurt Your Credit Score? CONTENT: Should I Freeze My Credit?\n--------------------------\nIt's a good idea to freeze your credit if you know or strongly suspect your Social Security number has been stolen or exposed in a data breach, or if you have evidence of identity theft or bogus attempts to open credit in your name. If you know you will not be seeking new loans or credit cards in the foreseeable future, it might make sense to freeze your credit reports as a precaution. But remember that you might need to thaw your accounts when dealing with companies that include credit checks in their customer-screening processes, such as when renewing a car insurance policy, renting a car or opening a new utility account.\nUnless you are certain your personal data is exposed or has been abused, you might want to consider adding fraud alerts to your credit files instead of freezing them. Somewhat less drastic than a freeze, a fraud alert requires creditors who receive applications in your name to verify your identity before proceeding with a credit check. There are several types of fraud alerts, so do your research to see which one is right for you.\nIf you want the security of blocking access to your credit reports altogether, but would prefer the ability to turn access off and on yourself without contacting the credit bureau each time, consider a credit lock. Experian offers credit locking as part of its CreditWorksSM Premium subscription service. END
 TITLE: Does a Credit Freeze Hurt Your Credit Score? CONTENT: How to Get a Credit Freeze\n--------------------------\nExperian, TransUnion and Equifax all have webpages you can use to set up a credit freeze. (They also have instructions on how to request a freeze by mail.) You'll have to provide scans or hard copies of a photo ID, proof of address (recently postmarked mail will suffice) and your Social Security number. Make sure to use a secure device and network—not a public Wi-Fi access point, for instance—if you're making the request online.\nThe same pages you use to set up a credit freeze can be used to remove or suspend a freeze, and they also provide instructions for lifting a freeze by phone.\nAlthough it's not free of drawbacks, a free credit freeze is a powerful tool that can protect you from having fraudulent loans or credit cards opened in your name. END
 TITLE: Will Paying Off My Student Loans Affect My Credit Score? CONTENT: What Happens to Your Credit After Paying Off Student Loans?\n-----------------------------------------------------------\nTo understand how paying off a student loan might affect your credit, it may help to consider how student loans can impact your credit throughout their lifecycle.\nStudent loans appear on your credit report as installment loans. These are loans that have a set dollar amount and a predetermined number of monthly payments, similar to a car loan. Adding an installment loan to any revolving credit card accounts you may have can improve your credit \"mix,\" or types of credit you manage, which is a factor in calculating your credit score.\nWhen you begin repaying your loan, your payments are reported to the credit bureaus. As long as your payments are on time, they contribute positively to your payment history—and, in turn, to your credit score. Late payments, collections or defaults also appear in your credit history and have a negative effect on your score. By the time you make that final loan payment, much of your student loan's credit story has already been written during the years you've been managing and repaying this debt.\nSo what happens when you pay off your loan? Paying off the loan in full looks good on your credit history, but it may not have a dramatic impact on your credit score.\nWhen you make your final loan payment, the account status on your credit report will be updated to \"paid\" (insert massive sigh of relief here). You may see a temporary dip in your score from the change to your credit report, especially if your student loan was your only installment loan or if your remaining loans or credit cards have high balances. You may also see a small increase after making your last on-time payment. Or you may also see no change at all. There is no set rule for how a final loan payment will affect your credit score—but in most cases, any effect is usually temporary.\nIf your score decreased after your last student loan payment, it will likely bounce back within a few months as long as there are no other negative issues in your credit history and you continue to make all your other debt payments on time. Your positive payment history on the account will remain part of your credit report for up to 10 years and will thus have some positive impact on your credit for years to come. If you had any negative items—late payments or collections, for example—these will stay on your credit report for seven years from the date of the original delinquency, at which point they will drop off. END
 TITLE: Will Paying Off My Student Loans Affect My Credit Score? CONTENT: The Benefits of Paying Off Your Student Loans as Soon as You Can\n----------------------------------------------------------------\nPaying off student loan debt can affect much more than your credit score. By removing the financial and emotional weight of student loan debt, you are free to reimagine your finances. You can:\n*   **Pay off high-interest credit cards.** You'll save money on interest and reduce your monthly debt load even further.\n*   **Save up for a house.** Funnel the money you used for monthly student loan payments into a down payment fund. Or upgrade to a nicer rental.\n*   **Qualify for a car loan or mortgage.** Not only can you save more toward a down payment, but you may also qualify for a larger loan now that you have a more favorable debt-to-income ratio (DTI). Lenders consider DTI to determine whether you can safely take on a new monthly loan payment.\n*   **Create an emergency fund.** If you haven't already, be sure to set aside emergency-only savings so you won't have to borrow money if you find yourself in a difficult position.\n*   **Treat yourself.** Go on vacation. Take yourself out to dinner. Buy yourself a computer. Invest in your own side hustle. As long as you're not putting yourself into a difficult financial position, celebrate your achievement.\nEliminating student debt makes financial goals more attainable. And here's a final note on financial health: With less debt to manage, it may be easier to manage your debt—that means making all of your monthly payments on time, keeping your credit utilization low, monitoring your credit consistently, and avoiding unnecessary applications for new credit. END
 TITLE: Will Paying Off My Student Loans Affect My Credit Score? CONTENT: How to Pay Off Your Student Loans Faster\n----------------------------------------\nIf life after student loans sounds appealing—but you still have a ways to go—consider forming a strategy for paying off your student loans faster. Here are a few ideas to get you started:\n*   **Start paying back your loan early.** Your student loan may not require you to begin repayment until six months after graduation, but you can begin paying while you're still in school and reduce the principal amount you owe.\n*   **Pay more than the minimum each month.** Adding even $50 or $100 to your monthly payment can chip away at your loan term significantly. Or throw in a lump sum when you receive a financial windfall—a tax refund or work bonus, for instance—to lower your principal.\n*   **Consider consolidating or refinancing your loans.** If you have multiple federal student loans, you may be able to consolidate them into a single fixed-rate direct consolidation loan. If you have good credit and you're open to private student loans, you may be able to lower your interest rate and\/or shorten your remaining loan term by refinancing your student loan on the private market. Keep in mind that you'll lose the benefits federal student loans offer, so weigh the pros and cons before refinancing. END
 TITLE: Do Prepaid Credit Cards Help Your Credit Score? CONTENT: Prepaid Credit Cards Will Not Affect Your Credit Score\n------------------------------------------------------\nEvery time you use a regular credit card to make purchases, you borrow money from the card issuer. Then, you can either repay this debt in full before the end of your billing period, or make at least a minimum monthly payment and let the remaining balance carry over (or \"revolve\") to the following month. If you carry a balance, you'll accrue added costs in the form of interest charges.\nCredit card companies typically report your payment activity to one or more of the three major consumer credit bureaus (Experian, TransUnion and Equifax). On-time payments help build a credit history and improve your credit score.\nA prepaid card works differently. You put your own money into the prepaid card account, and the amount you spend is limited to the account balance. Once the prepaid balance is exhausted, no more purchases can be made. If the prepaid card is reloadable, you add (or \"load\") money onto the card as needed. Non-reloadable prepaid credit cards, often sold as gift cards, are no longer usable when the funds are gone.\nYour use of prepaid credit cards is not reported to credit bureaus, so they don't affect your credit score. END
 TITLE: Do Prepaid Credit Cards Help Your Credit Score? CONTENT: When Is a Prepaid Credit Card a Good Option?\n--------------------------------------------\nThere are several reasons people choose prepaid credit cards.\n*   **You don't have a bank account.** You need a bank account to get a debit card and most regular credit cards. You can buy a prepaid credit card with cash and get the convenience of a payment card without a bank account.\n*   **You want an alternative to cash.** Prepaid credit cards can be more convenient than carrying cash or for businesses that don't accept cash. If you can't get a credit card or debit card, you can use a prepaid card to make online purchases. A prepaid credit card can be used anywhere the card's payment network, such as Visa, Mastercard or American Express, is accepted.\n*   **You're under 18.** You must be at least 18 to get a credit card in your name. If no one is willing to add you as an authorized user on their credit card, a prepaid credit card could be an alternative.\n*   **You can't qualify for a regular credit card.** Getting a regular credit card requires a credit check; if you have poor credit or no credit history, you may not qualify. There's no credit check for prepaid credit cards; you can get one at drugstores, office supply stores, gas stations, supermarkets and online, and start using it right away.\n*   **You want fraud protection.** Prepaid credit cards offer safeguards similar to what credit cards and debit cards do. Cardholders are only liable for up to $50 if an unauthorized charge is reported within two days of its occurrence, according to federal rules. Some protections only kick in once the card is registered with the issuer. If your card is lost or stolen, the card issuer may transfer your balance to a new card.\n*   **You want help budgeting.** If you tend to overspend, a prepaid credit card can restrain you, because spending is limited to the money in your account.\n*   **You want to give someone money.** Parents sometimes use prepaid credit cards to give children allowances. You can also give a housekeeper or nanny a card they can use to make purchases for your family, like buying groceries. END
 TITLE: Do Prepaid Credit Cards Help Your Credit Score? CONTENT: Are Prepaid Cards Safe to Use?\n------------------------------\nPrepaid credit cards offer some protections in case of loss or fraud. Once you get your card, register it immediately and write down the number on the back of the card. If the card is lost or stolen or you notice a suspicious withdrawal, call the number right away.\nYour responsibility for fraudulent or mistaken charges on a prepaid debit card is limited as long as you report it right away. If investigating the dispute will take more than 10 business days, card issuers are typically required to credit the amount in question back to your account while the problem is resolved.\nSome prepaid cards offer deposit insurance, which protects the money in your account if the card issuer goes out of business. You must register your card to get this protection.\nTo lessen the risk of loss from a prepaid credit card, keep the card in a safe place and limit the amount you load to the account. END
 TITLE: Do Prepaid Credit Cards Help Your Credit Score? CONTENT: Alternatives to Help You Build Credit\n-------------------------------------\nIf you can't get a regular unsecured credit card but would still like to build credit, here are two alternatives that offer convenient ways to pay with the added benefit of reporting payments to the credit bureaus.\n*   **Get a secured credit card.** Secured credit cards work like regular credit cards, except that you put down a refundable security deposit that serves as collateral and reduces the lender's risk. Your security deposit generally determines the card's credit limit. Choose a card that reports to at least one credit bureau, use it for small purchases, and pay your bill on time to potentially give your credit score a lift.\n*   **Become an authorized user.** If you have a family member with a good credit score, becoming an authorized user on one of their credit cards allows you to benefit from their positive credit history. You'll be authorized to make purchases with the card, but the primary account holder is ultimately responsible for payments. If the card issuer reports authorized user activity to the credit bureaus, the account will appear on your credit report and potentially help improve your credit score. END
 TITLE: Do Prepaid Credit Cards Help Your Credit Score? CONTENT: Is a Prepaid Credit Card Right for You?\n---------------------------------------\nPrepaid credit cards offer some advantages over cash but won't help improve your credit score. To build credit, you may want to get a secured credit card or become an authorized user on a family member's card instead. Use these payment methods responsibly to help improve your credit—and sign up for free credit monitoring to track your progress. END
 TITLE: How Often Should I Check My Credit Score? CONTENT: How Often Is My Credit Score Updated?\n-------------------------------------\nCredit scores are created on demand and are based on credit reports from the three major consumer credit bureaus—Experian, TransUnion or Equifax. While it can sometimes feel like you're checking a score that's constantly being updated in the background—that's simply not how it works. A credit report must be requested and created, and then that report is scored.\nWith this in mind, it may be more helpful to ask yourself what's changed in your credit report since the last time you checked your score?\nMany changes can affect your scores, including:\n*   You applied for a new credit account.\n*   You opened or closed an account.\n*   A creditor sent an update to the credit bureaus with your most recent payment and account information.\n*   A collection agency reported a collection account in your name to the credit bureaus.\nIf you regularly check your credit scores, you may see that they move up and down quite often. The changes may be due, in part, to one of the above. Additionally, credit scores may use several time-related attributes when determining a score, such as the average age of your accounts or how long it's been since a negative item was added to your credit report. As a result, even the passage of time can lead to changing credit scores—even if everything else stays the same. END
 TITLE: How Often Should I Check My Credit Score? CONTENT: You can check many of your credit scores for free online. For example, you can create a free Experian account to see your FICO® Score☉ 8 based on your Experian credit report.\nSome banks, credit unions, lenders and credit card issuers also offer free credit scores to current and prospective customers. There are also online financial technology companies that give members free credit scores.\nDepending on the provider, you may get either a FICO® Score or VantageScore® credit score, and the score could be based on either your Experian, TransUnion or Equifax credit report.\nAdditionally, you can purchase credit scores from FICO® and third-party providers. Buying a score doesn't always make sense, because you generally won't know which score type a lender will use to evaluate your application. However, many mortgage lenders use specific FICO® Score models. To help with your preparation, it may make sense to purchase those FICO® Scores or sign up for a program such as Experian CreditWorks℠ Premium that includes them.\nChecking your own credit will result in a soft inquiry being added to your credit report. Inquiries are simply records of who has viewed your credit, and soft inquiries have zero impact on your credit score. The other type of inquiry, a hard inquiry, is typically associated with applications for new credit accounts and may cause your credit scores to drop slightly. END
 TITLE: How Often Should I Check My Credit Score? CONTENT: What Determines Your Credit Score?\n----------------------------------\nWhile there are many credit scoring models used to calculate a score, they tend to be impacted by similar factors. So, while an exact score depends on the scoring model and which credit report it's analyzing, your credit scores are likely to trend in the same direction.\nCommon scoring factors include:\n*   Your account payment history\n*   Credit account balances\n*   Experience with different types of credit\n*   The age of your credit accounts\n*   Whether you've recently applied for or opened new accounts\nIn general, having a long history of making on-time payments and maintaining low balances on your credit cards can help all of your credit scores. Missing a payment, filing for bankruptcy or having an account sent to collections can hurt all your credit scores, although the impact can also diminish over time and eventually the negative information disappears completely. END
 TITLE: How Often Should I Check My Credit Score? CONTENT: Sign Up for Free Credit Monitoring\n----------------------------------\nIn addition to checking your credit score before applying for a loan or credit card, you may want to monitor your scores for large unexpected drops. These could indicate that you've missed a payment, or that someone has fraudulently applied for credit and opened accounts in your name.\nFortunately, you can get free Experian credit monitoring with real-time alerts. Experian also offers subscriptions to identity theft protection services, which include identity theft insurance and an option to get three-bureau monitoring and alerts. END
 TITLE: How to Qualify for a Car Loan CONTENT: Make Sure You Have Good Credit\n------------------------------\nHaving a good credit score is essential if you want to get approved for an auto loan with decent terms. In general, a good FICO® Score☉ ranges from 670 to 739, and a higher score is even better.\nAuto lenders typically use the FICO 8 or FICO Auto Score models to determine your score. Keep in mind, though, that lenders may have their own rubric for determining what they consider to be good or not. But if your credit score is at least in the good range, you'll have a relatively good chance of getting approved.\nAlso, note that lenders may choose to approve you for a car loan even if you have a less-than-ideal credit score. But they may charge you a higher interest rate or require a cosigner with strong, established credit. Some lenders specialize in working with people who have bad credit scores, but these loans can be expensive, so it's a good idea to work on improving your score before you apply. END
 TITLE: How to Qualify for a Car Loan CONTENT: Have a Source of Income\n-----------------------\nHaving a steady income is important to auto lenders because it improves the likelihood that you'll make your monthly payments. Depending on the lender and your job situation, you may need to provide one or more forms of documentation.\nIf you're a W-2 employee, for instance, a recent pay stub or a W-2 form may suffice. If you're self-employed or receive Social Security or other similar forms of income, however, you may need to provide bank statements.\nSpeak with the lender early on in the process to talk about your situation and find out what documents you need to avoid prolonging the process. END
 TITLE: How to Qualify for a Car Loan CONTENT: Be Able to Prove Your Identity and Residence\n--------------------------------------------\nIf you're getting a loan from the bank or credit union you use regularly, you may not need to provide this information. If you're working with a lender for the first time, however, you may need to provide a government-issued ID and proof of residence.\nThis is primarily because the lender wants to know where the car will be parked in case you default on payments and it needs to repossess the vehicle.\nAgain, requirements can vary by lender, but in general, a driver's license or other government-issued ID with your current address can satisfy both. If you don't have that, you can also provide a utility bill, lease agreement or bank statement with your address on it to prove your residence. END
 TITLE: How to Qualify for a Car Loan CONTENT: Consider Getting Preapproved\n----------------------------\nThe auto loan preapproval process allows a lender to run a soft credit check and review your credit report to determine what your chances are of getting approved and what interest rate and other terms you might qualify for. If a lender doesn't preapprove you, then you know not to waste your time applying.\nBecause it's a soft credit check, getting preapproved won't hurt your credit score. If you go through the process with multiple lenders, it also gives you an opportunity to compare different lenders to see which one will give you the best loan terms.\nKeep in mind, though, that not all auto lenders offer preapproval. Also, some may require that you have a specific car in mind, while others don't. END
 TITLE: How to Qualify for a Car Loan CONTENT: Have a Down Payment or Trade-In\n-------------------------------\nMaking a down payment or trading in your current car reduces how much you have to borrow and can make it easier to get approved at a lower interest rate. Here's what you need to know about each option.\n### Down Payment\nA down payment is cash that you give to the dealer or seller to help cover a portion of the sales price of the vehicle. Lenders tend to view borrowers with down payments more favorably because it means they have skin in the game and are less likely to default.\nBecause a down payment reduces how much you have to borrow, it also lowers your monthly payment and the total amount you pay in interest.\n### Trade-In\nA trade-in is any vehicle with value that you offer a dealer in exchange for credit to go toward the sales price of the car you're buying. For example, if you're buying a $15,000 car and trade in your current car for $8,000, you only need to borrow $7,000 on the new vehicle—that is, if you don't have a loan on the original car that you need to pay off.\nIf you owe more on the car than what the dealer offers for trading it in, you have what's called negative equity, and you'll need to pay the difference immediately to your lender upon the sale of the car.\nTrading in a car is convenient, but you typically won't get as much from the sale than if you sell it to a private party. If you don't have time to sell the car on your own, though, and you don't have negative equity, the convenience may be worth it. END
 TITLE: How to Qualify for a Car Loan CONTENT: Understand How Financing at a Dealer Works\n------------------------------------------\nIf you're working with a dealer, it's important to understand how they handle the financing process. With many dealers, they reach out to multiple lenders at once to get quotes that they can share with you. Be sure to ask to view all the quotes instead of just the one the dealer recommends.\nSome dealers may even offer special financing programs to borrowers that are sponsored by the car's manufacturer. These deals typically require that you have excellent credit and agree to specific terms. END
 TITLE: How to Qualify for a Car Loan CONTENT: Qualifying for a Car Loan With Bad Credit\n-----------------------------------------\nYou don't need good credit to get a car loan. In fact, there are several auto lenders that specialize in working with borrowers with bad credit.\nTo get an auto loan with bad credit, take your time shopping around to find lenders that offer preapproval and can give you relatively decent terms. Also, try to have a good down payment or trade-in value to help reduce the amount you need to borrow.\nFinally, consider getting a cosigner who has great credit and can help you qualify for a better auto loan. Just keep in mind that your cosigner is equally responsible for paying off the loan if you default, so it can ruin both your credit histories if you're not careful. END
 TITLE: How to Qualify for a Car Loan CONTENT: Work on Your Credit Before Applying\n-----------------------------------\nThe better your credit situation, the higher your chances of getting approved for an auto loan with excellent terms. If you don't need a new car quite yet, check your credit score to see where you stand, then focus on areas where you can improve.\nFor example, get caught up on any past-due payments and work on paying down credit card balances. Also, check your credit report for potential inaccuracies that you can dispute with the credit reporting agencies. Improving your credit can take time, but it's well worth it if it can save you money. END
 TITLE: What to Do if You Can’t Pay Your Credit Card Bills CONTENT: Call Your Credit Card Issuer\n----------------------------\nHow do you pay bills you can't afford? Once you've exhausted efforts to bring in more money or reduce your expenses, it's time to explore your other options. Among them is the possibility that your card company is willing to work with you to provide accommodations. Credit card companies are often understanding that financial situations change and may help you avoid a charge-off of your account. Before you make contact, do these two things:\n*   **Clarify your issue.** Are you experiencing a one-time issue—for example, an emergency car repair that depleted your bank accounts? Or will you be facing the same shortfalls month after month because your income has dropped? In a few words, what is the problem? Providing a clear, concise explanation to your card issuer can be helpful.\n*   **Create a plan.** If you can, try to figure out what might help. Would skipping a payment or two put you back on course? When would you be able to resume making normal payments? Would a lower monthly payment make a difference?\nIf you know what you might need, you're ready to contact your card issuer—the sooner, the better. Do not wait until you're behind in payments to contact your card company, as they may be less willing to help. When you call, explain your situation in detail. You may propose your own plan or ask what payment relief options they have and whether you're eligible. Many card companies will be able to offer at least some assistance. Examples include skip-a-pay programs that let you skip a few payments without penalty or adjusted payment plans with reduced interest rates.\nGet the details of any arrangement you make in writing. This helps you remember your terms and provides documentation in case there's any confusion with your card company going forward. END
 TITLE: What to Do if You Can’t Pay Your Credit Card Bills CONTENT: How Unpaid Credit Card Balances Affect Your Credit\n--------------------------------------------------\nIf you don't take proactive measures, your credit can take a serious hit. Once a late payment is reported to the credit bureaus, a series of consequences can result, especially if you've chosen not to take any action. Here are some of the ways an unpaid balance can hurt your credit:\n*   Just one 30-day-late payment can drop your credit score. A late payment stays on your credit report for seven years, but its effect on your credit score can lessen over time.\n*   When a delinquency is reported, your account is no longer considered \"in good standing\" on your credit report.\n*   If more billing periods pass without you making a payment, additional missed payments will be recorded on your credit report.\n*   After 180 days, your credit card company may close your account and charge off your debt, resulting in an additional negative mark on your credit.\n*   At this point, your card issuer could sell your debt to a collection agency, which adds a collection account to your credit information.\n*   Payment history affects 35% of your FICO® Score☉ ; it's the largest single factor in determining your score. Every delinquency reported has the potential to bring your score down drastically.\n*   When your account is closed, the amount of credit you have available will drop. If you have other revolving credit accounts, this could affect your credit utilization, which is the amount of credit you're using compared with your total available credit. The \"amounts owed\" category, which includes credit utilization, makes up 30% of your FICO® Score.\n*   Closing your account also reduces the length of your credit history, which measures how long your accounts have been open. The age of your accounts make up 15% of your FICO® Score.\n*   Your unpaid balance is subject to late fees and penalty interest rates that can make it even more difficult to get back on schedule, pay down your debt or gain control of your credit utilization.\nDo everything you can to avoid the above consequences. If you can afford it, be sure to pay at least the minimum credit amount required on all your accounts. You could also continue to revisit your budget and look for ways to bring in a bit of extra income each month. Debt consolidation could be a good option if you are dealing with high-interest debt. For help with any of the above, consider working with a qualified credit counselor (more on this below). Their services are free and can save you untold trouble and stress when your finances are in crisis. END
 TITLE: What to Do if You Can’t Pay Your Credit Card Bills CONTENT: Get Help From a Free Credit Counseling Service\n----------------------------------------------\nFree professional help is available for people who are having a tough time managing credit card debt. Free credit counseling services are not to be confused with for-profit credit repair, which is typically costly and ineffective. Nonprofit credit counseling offers free help with budgeting and advice on dealing with—and ultimately paying off—your debt. A credit counselor can also help you create a debt management plan to help you negotiate lower interest rates and pay off your credit card debts in three to five years.\nTraining, tools and support from a certified credit counselor can take some of the confusion and isolation out of overwhelming debt. Look for credit counseling agencies through the National Foundation for Credit Counseling or the Financial Counseling Association of America. The U.S. Department of Justice website also lists approved credit counselors by state. END
 TITLE: What to Do if You Can’t Pay Your Credit Card Bills CONTENT: Keeping Up With Your Payments and Your Credit\n---------------------------------------------\nNot having enough money to pay your credit card bills can be stressful, especially if your shortfall is connected to prolonged financial issues. Try to take the opportunity to fully understand your financial situation. With Experian, you can check your credit score and report for free, and sign up for free credit monitoring to help you stay on top of changes to your credit file. Enlist the help of your credit card company and think about seeking help from a nonprofit credit counseling agency: The more light you can shed, the clearer your path forward may be. END
 TITLE: What Does Adjusted Gross Income Mean? CONTENT: AGI is your gross—or total—income minus a few \"adjustments.\" Gross income includes wages, dividends, capital gains, business income, retirement distributions and additional items like tips, rental property income and unemployment benefits. Adjustments include educator expenses, student loan interest, alimony you've paid or contributions you've made to a retirement account.\nTo distinguish between three types of income you may be asked about:\n*   **Gross income** is all income that is not specifically tax-exempt.\n*   **Adjusted gross income** subtracts \"above the line\" adjustments like student loan interest and retirement contributions.\n*   **Taxable income** is AGI minus standard or additional itemized deductions. END
 TITLE: What Does Adjusted Gross Income Mean? CONTENT: What Is AGI Used for?\n---------------------\nAGI is one of the key metrics that determine how much income tax you owe, both at the state and federal levels. Once you calculate your AGI, you're ready to take your allowable deductions and exemptions and figure out how much tax you owe.\nThe IRS also requires you to enter your prior year's AGI when you e-file if you've prepared your own taxes. You'll find your AGI on last year's IRS Form 1040, line 8B.\nAGI is the figure lenders are looking for when they ask for your income on a mortgage application. Your AGI provides insight into multiple sources of income, not just your wages. This helps your lender get a clearer picture of how large a loan payment you can afford each month, based on all of your monthly income. Your AGI is also relatively easy for a lender to verify by reviewing your past tax returns.\nApplying for financial aid? AGI is the income used for the Free Application for Federal Student Aid (FAFSA). Overall, it's never a bad idea to clarify what a credit card company, lender or even the IRS means when they ask you for income information. But, more often than not, your AGI is the number they're looking for. END
 TITLE: What Does Adjusted Gross Income Mean? CONTENT: How to Calculate Your Adjusted Gross Income\n-------------------------------------------\nYour most recent tax return can be a great help in calculating your AGI. In fact, if you're looking for your most recent AGI, it's listed on your last tax return (as mentioned, on line 8B on Form 1040). If you need a more current number or your tax return isn't handy, here's a quick guide to calculating your adjusted gross income:\n**Add up your income.** Total up all sources of taxable income. These include wages, self-employment income, unemployment benefits, tips, investment dividends, taxable interest, taxable alimony, royalties, capital gains, income from real estate investments and any other income that is not tax-exempt. What doesn't qualify as gross income? The list of exceptions is relatively long. It includes life insurance benefits, some Social Security benefits, scholarships and some employee benefits.\n**Gather up your adjustments.** Check out all the options for above-the-line deductions, which include student loan interest, tuition, retirement account contributions and educator expenses. Add up all the adjustments that apply.\n**Subtract your adjustments from your gross income** to get your AGI.\nHere's an example of how this math works:\n**Gross income:**  \nWages (from your W-2): $72,000  \nDividend income: $3,100  \nTOTAL: $75,100\n**Adjustments:**  \nIRA contribution: $2,500  \nStudent loan interest: $635  \nTOTAL: $3,135\n**Adjusted Gross Income** (Gross income minus adjustments):  \n$75,100 - $3,135 = $71,965\nIf your finances are simple and accuracy isn't mission-critical, doing these back-of-the-envelope estimates is fine. However, if you need more detail, visit the IRS website for current information on gross income, exceptions, adjustments and more. And if you're submitting your AGI as part of a mortgage application, FAFSA or your tax return, consider working with a tax professional who can help you make sure your calculations are comprehensive and accurate. To find a trusted tax professional, you can use this IRS resource. END
 TITLE: What Does Adjusted Gross Income Mean? CONTENT: How Adjusted Gross Income (AGI) Compares to Modified Adjusted Gross Income (MAGI)\n---------------------------------------------------------------------------------\nIn a few cases—for example, if you want to contribute to a traditional or Roth IRA or apply for certain federal tax benefits such as adoption tax credits—you may need to provide a modified adjusted gross income (MAGI) instead of an AGI. What's the difference? Typically, MAGI is AGI with certain deductions added back. These deductions may include:\n*   Student loan interest\n*   Tuition and fees\n*   Foreign earned income exclusion\n*   Foreign housing exclusion or deduction\n*   Excludable savings bond interest\n*   Excluded employer-provided adoption benefits\nMAGI may be calculated differently for different applications. For example, IRS publication 590-A, Contributions to Individual Retirement Arrangements, has worksheets to compute MAGI for traditional IRA eligibility and for Roth IRA eligibility, with a slight difference between the two. If you're being asked to provide MAGI, look for specifics on how it should be calculated. In many cases, there is no difference—or very little—between AGI and MAGI; the deductions involved are relatively rare. END
 TITLE: What Does Adjusted Gross Income Mean? CONTENT: Calculating and Using Your AGI\n------------------------------\nAlthough AGI is a graspable concept—and a real number you can calculate yourself—it does require a bit of math and technical knowledge to get it right. Enlisting the help of a tax professional, tax preparation software or even your past tax returns can make that math a little easier.\nIf you're planning to use your AGI on a mortgage, loan or credit card application, don't overlook the value of preparing your credit as well. Checking your Experian FICO® Score☉ and credit report, and taking the time to improve your credit if that's warranted, can work hand in hand with your qualifying income to land you the credit or loan you want. END
 TITLE: What Are Real-Time Payments? CONTENT: Real-time payments became a reality in the U.S. in 2017, when The Clearing House Payments Company introduced new digital infrastructure capable of processing transactions almost instantly. The idea was revolutionary, and it allowed the average consumer to shop and pay bills online, or deposit a check using their mobile phone. Quickly, instant transactions became routine.\nIn addition to becoming a popular feature of person-to-person (P2P) payment apps like CashApp and Venmo, real-time payments are also a simple and transparent way for businesses to pay contractors, issue payroll and receive payment.\nReal-time payments are a way to avoid the lengthy verification processes that slow traditional transactions down. Paper checks can take days—even weeks—to post after being deposited. Regular electronic transfers, as already mentioned, are often a three-day event. Even credit and debit card transactions can take a day or longer to \"settle,\" even though purchases go through instantaneously. END
 TITLE: What Are Real-Time Payments? CONTENT: Where Can You Get Real-Time Payments?\n-------------------------------------\nIn your daily life, you're most likely to encounter real-time payments on P2P apps. These apps allow users to send or receive money almost instantly, any day of the week and any time of the day—although you may pay an additional fee for instant payments versus free regular payments. You don't have to exchange cash or a check. You don't have to visit a bank branch or wait for \"business hours\" for money to post.\nBut wait. Outside of these apps, maybe \"lightning fast\" doesn't actually describe your experience with most forms of money transfer. You're not imagining things. Real-time payments are still not the standard for most types of traditional transactions, including check payments, regular electronic transfers and card payments.\nStill, real-time payments do seem to be setting new expectations for speed. For one thing, people really like the idea of faster payments. According to industry tracker PYMNTS, 70% of consumers who have used real-time payments before would be \"very\" or \"extremely\" likely to use the option again if it were available for free, and nearly one-third (30%) consider real-time payments to be a key factor in selecting financial institutions.\nThe value of speedier transactions isn't lost on banks, credit card companies or lenders. They're looking at ways to entice customers by accelerating money movement with real-time payments and other types of timely incentives. Here are a few examples:\n*   Online bank Chime offers early access to your direct-deposited paycheck—up to two days faster.\n*   Personal loans from Upstart may be funded in as little as one day.\n*   The Mello Smartloan mortgage from LoanDepot may shave as many as 17 days off closing by speeding up the approval process.\n*   Many credit card issuers now offer instant card credentials you can use online while you're waiting for a new or replacement card to arrive.\nAnd these developments may be just the beginning. New ideas for faster payments and transactions are constantly coming to the fore. The industry is looking ahead to an additional real-time payments network from the Fed, called FedNow, which could help expand options and accelerate money transfer for consumers and businesses even further. END
 TITLE: What Are Real-Time Payments? CONTENT: How to Use Real-Time and Faster Payments Wisely\n-----------------------------------------------\nIn the meantime, consider these tips for speedy transactors:\n*   **Shop around for fast options.** If speed counts, seek it out. Whether you'd like a mortgage that closes fast or real-time payment capabilities for your small business, you may have more options than you think. Ask your bank how they can help you, or shop around for the speed you need.\n*   **Be prepared to pay, but don't overpay.** Fast money can cost you a bit more, but beware of exorbitant fees or choices that aren't in your best interest. You might choose to pay slightly more in interest or fees to get a personal loan with fast funding. Some fast money sources aren't consumer-friendly, however—a payday lender could charge an annual percentage rate of nearly 500%.\n*   **Think fast.** Since real-time payments have no built-in lag time, make sure you have the money available in your account before you send a real-time payment. Be careful when entering payment information as well: Once you've sent a payment to the wrong recipient, you probably can't retrieve it.\n*   **Beware of fast fraud.** The Federal Communications Commission warns that fraudsters—including some posing as charities or online sellers—are requesting payment by P2P apps as a way to get money instantly and anonymously. Before you know what hit you, they're gone—along with your money. END
 TITLE: What Are Real-Time Payments? CONTENT: Real-Time Payments: A Growing Reality\n-------------------------------------\nBoth directly and indirectly, real-time payments are changing the way we pay and get paid. Going forward, look for additional opportunities to transact quickly. And as you go, take an extra moment to be secure. END
 TITLE: What Credit Score Do I Need to Get a Mortgage? CONTENT: What Credit Score Do I Need for a Conventional Loan?\n----------------------------------------------------\nLenders issuing conventional mortgages have considerable leeway in determining credit score requirements for their applicants. Lenders may set credit score cutoffs differently according to local or regional market conditions, and they may also set credit score requirements in accordance with their business strategies. For example, some mortgage lenders may prefer to deal only with applicants with credit scores above 740—considered very good or exceptional on the FICO® Score☉ scale range of 300 to 850, while others may specialize in subprime mortgages aimed at applicants who have lower credit scores. Many lenders offer a catalog of mortgage products designed for applicants with a range of credit.\nAll that considered, the minimum FICO® Score required to qualify for a conventional mortgage is typically about 620. END
 TITLE: What Credit Score Do I Need to Get a Mortgage? CONTENT: What Is the Minimum Credit Score for an FHA Loan?\n-------------------------------------------------\nLoans backed by the Federal Housing Administration (FHA) are designed to help Americans get into their first homes. They are issued by the same kinds of lenders that provide conventional loans, including banks, credit unions and mortgage brokers, but must adhere to strict FHA guidelines. FHA loans are well-suited to applicants with limited or less-than-perfect credit histories who may not qualify for conventional mortgages.\nYou can get an FHA mortgage with a FICO® Score as low as 500, but applicants with scores ranging from 500 to 579 must make a down payment of at least 10% to qualify. Applicants with credit scores of 580 or greater can qualify with a down payment as low as 3.5%. END
 TITLE: What Credit Score Do I Need to Get a Mortgage? CONTENT: What Credit Score Is Needed for a USDA Loan?\n--------------------------------------------\nHome loans issued by the U.S. Department of Agriculture (USDA) are designed to help low- and moderate-income individuals and families buy and improve homes in non-urban America (that is, the 97% of the country's geographical area that's considered rural or suburban).\nThere are three types of USDA home loans, including those intended for very low-income applicants, homeowners wishing to improve their property and qualified moderate-income applicants who want a low interest loan with a small down payment. Mortgage rates and borrowing limits on USDA loans vary according to prevailing property values in different parts of the country.\nThe USDA doesn't specify minimum credit score requirements for the loans it backs, but the minimum FICO® Score requirement nationwide is about 640. END
 TITLE: What Credit Score Do I Need to Get a Mortgage? CONTENT: What Credit Score Is Needed for a VA Loan?\n------------------------------------------\nQualifying service members, veterans and surviving spouses can buy homes with little or no down payment and no private mortgage insurance requirements, thanks to housing benefits from the U.S. Department of Veterans Affairs, commonly known as VA loans. Issuers of VA loans have some discretion in setting minimum credit score requirements, but they may accept applications from borrowers with FICO® Scores as low as 620. END
 TITLE: What Credit Score Do I Need to Get a Mortgage? CONTENT: How to Get Your Credit Score Ready for a Mortgage\n-------------------------------------------------\nNo matter what type of mortgage you seek, it's always advantageous to apply with the highest credit score you can manage. Meeting the minimum score requirement for a loan is just the start. Lenders also use your credit score to help set interest rates and fees on the loan, and generally speaking, the higher your credit score, the better your borrowing terms will be and the less you'll pay in interest and fees over the life of the loan.\nIf you're planning to apply for a mortgage in the next 12 months, you may be able to take steps starting today to spruce up your credit score so your loan application reflects the best credit score you can get.\nAny credit score that helps you qualify for a mortgage you can afford can be considered a good score. Even so, most of us have room to improve our scores—and reap potential savings over the lifetime of a mortgage loan. END
 TITLE: Should I Pay Off My Credit Card Debt Immediately or Over Time? CONTENT: Does Paying Off Credit Cards Slowly Help My Credit Score?\n---------------------------------------------------------\nIt's an oft-repeated credit myth that carrying a credit card balance helps your credit scores. In reality, high balances on revolving credit accounts can mean high credit utilization, which can hurt your credit standing.\nYour credit utilization ratio is a comparison of your credit card balance to your total credit limit, expressed as a percentage. It's the second most important factor in your credit score calculation, making up 30% of your FICO® Score☉ . To calculate it, divide your total credit card balances by your total credit card limits. The lower the ratio is, the better for your credit health. Keep it under 30% to avoid hurting your scores; experts suggest keeping it under 7% for the best scores.\nThe effect credit utilization has on your credit scores is a strong argument for paying off your credit card balances every month—but it's not the only one. Carrying a balance can cost you heavily in interest. END
 TITLE: Should I Pay Off My Credit Card Debt Immediately or Over Time? CONTENT: How Making Minimum Payments Can Cost You\n----------------------------------------\nPayment history is the most heavily weighted credit score factor, so making credit card payments on time every month is essential to keeping your credit in good shape. It also helps you avoid late fees.\nIf you only make minimum payments each month, however, you'll pay interest on the remaining balance that carries over to the next billing period. Plus, most credit cards charge compounding interest, which can make credit card debt snowball fast and take years to repay.\nSay you owe $3,000 on a credit card with an 18% annual percent rate (APR), and your minimum payment is 3% of the balance or $25, whichever is greater. If you make just the minimum payments, it will take you nearly 14 years to pay off the debt. On top of that, it will cost you almost $2,700 in interest, nearly doubling the amount you owed originally. END
 TITLE: Should I Pay Off My Credit Card Debt Immediately or Over Time? CONTENT: The impact on your credit and finances of carrying credit card balances should be enough to convince you that low or no credit card debt is best. But don't get discouraged if you can't afford to pay off your credit cards all at once. The average U.S. consumer carries a credit card balance of nearly $6,200, not an amount most can quickly come up with. While it may feel overwhelming, try to focus on paying down the debt as soon as possible.\nHere are strategies to help you pay off credit card debt. END
 TITLE: Should I Pay Off My Credit Card Debt Immediately or Over Time? CONTENT: The Bottom Line\n---------------\nWhether or not you can pay off your credit cards immediately, make it a priority to maintain a positive payment history and use credit responsibly. Even if it takes a while to clear your balances, your credit will thank you in the end—and so will your bank account. END
 TITLE: How to Save Money on Furniture for a New Home CONTENT: 1\\. Review Your Budget Before You Buy\n-------------------------------------\nBefore you buy a single piece of furniture, it's wise to figure out how much you can reasonably afford to spend on furnishing your new home. You can do this by checking your household budget or creating one if need be.\nA household budget offers an overview of your income and expenses, and can help you figure out how much money you have available to set aside for home furnishings. You certainly want to avoid going into extreme debt to buy tables, beds, chairs, sofas and other items for your home.\nUsing cash savings to buy furniture will mean saving on interest charges that would result if you borrowed to pay for furniture. Depending on your timeline, you may be able to save up enough to furnish your entire home by the time you close the sale. Calculate your furniture costs and divide that by the number of months until your planned move-in date to figure out how much cash to send to your savings account every month. END
 TITLE: How to Save Money on Furniture for a New Home CONTENT: 2\\. Pay With a Credit Card\n--------------------------\nTo cover the cost of home furnishings, you might consider paying with a credit card. If you go this route, you'll probably want to stick with a card that provides a low annual percentage rate (APR) or get a card with a 0% intro APR. Why? Because if you carry a balance from one month to the next, a low APR or 0% intro APR can reduce or eliminate interest charges.\nEven better is a credit card that provides an attractive APR as well as the ability to earn rewards, such as travel miles or cash back. Additionally, you might consider opening a credit card account that provides a generous intro bonus. Again, you'll want to find a card that comes with a low APR or 0% APR if possible. One note of caution, however: It's important to wait until the mortgage approval process is completed before applying for a credit card or any other form of debt. The hard inquiry associated with the application and the appearance of a new credit account on your credit report has the potential to disrupt your loan approval.\nAs you're deciding whether to use a credit card to buy furniture, keep in mind that retail store credit cards often charge higher APRs than what you'd find with traditional credit cards. If you don't pay off your balance in full every month, you could wind up being saddled with more interest on the balance of a retail store credit card than with a traditional credit card. END
 TITLE: How to Save Money on Furniture for a New Home CONTENT: 3\\. Shop During Sale Seasons\n----------------------------\nShopping during the right seasons is a great way to snag deals on furniture. Generally, furniture prices fall in late summer and late winter as stores prepare to stock new styles that arrive in the fall and spring. Here's a bargain-hunting rundown for specific types of furniture:\n*   **Living room and dining room furniture**: For this category, aim to buy items from January through April, when demand and prices tend to decrease.\n*   **Mattresses**: You'll often come across mattress bargains around major holidays, such as Thanksgiving, Presidents Day, Memorial Day and Labor Day. Cyber Monday, which falls on the Monday after Thanksgiving, might be a good time to score an online deal on mattresses too. You might even try shopping for mattresses between Christmas Day and New Year's Day or on Super Bowl Sunday, when fewer shoppers are out and about.\n*   **Outdoor furniture**: You can unearth some sweet deals on outdoor furniture between Independence Day and Labor Day. Steeper discounts may be available on outdoor merchandise that remains unsold after Labor Day.\n*   **Office furniture**: Need to furnish your new home office? If so, the ideal time to buy office furniture usually is around back-to-school time, when retailers slash prices on desks, office chairs and the like.\nNo matter the season, remember that some retailers offer year-round furniture bargains. They include Amazon, Bed Bath & Beyond, Birch Lane, Hayneedle, Home Depot, IKEA, Kohl's, Overstock, Target, Walmart, Wayfair and World Market. END
 TITLE: How to Save Money on Furniture for a New Home CONTENT: 4\\. Buy Used Furniture\n----------------------\nIn some cases, secondhand furniture may be practically as nice and functional as brand-new furniture—but without the hefty price tag. Here are some cost-conscious options for purchasing used furniture:\n*   Online marketplaces such as Craigslist, eBay, Etsy, Facebook Marketplace and OfferUp\n*   Furniture consignment shops\n*   Thrift stores\n*   Antique shops\n*   Flea markets\n*   Habitat for Humanity ReStore locations\n*   Goodwill retail stores\n*   Estate sales\n*   Garage sales\nYou might even ask relatives, friends or colleagues if they've got any furniture they'd be willing to part with—perhaps at little to no cost to you.\nWhen making a major furniture purchase, a little bit of haggling may save you big as well. You might be able to talk your way into a lower price. But if you and the seller can't agree on a price, you may walk away to find a better deal elsewhere or return later and find that the seller is more eager to make a deal.\nWhen you're shopping for used furniture, be sure to closely examine any piece you want to purchase, look carefully at tags and labels, and buy only what you need. Also, you may want to shy away from buying used mattresses or used upholstered furniture, as bugs and dirt may be lurking where it can't be seen by the naked eye. END
 TITLE: How to Save Money on Furniture for a New Home CONTENT: 5\\. Create a Registry\n---------------------\nYou've heard of wedding registries and baby registries. Well, don't overlook the ability to set up a housewarming registry you can use to ask relatives, friends and colleagues to buy furnishings you've picked out for your new place. You might even be able to collect discounts—such as 15% at Crate & Barrel or 20% at Bed Bath & Beyond—when you sign up for a housewarming registry. END
 TITLE: How to Save Money on Furniture for a New Home CONTENT: The Bottom Line\n---------------\nFurnishing a new home can be a pricey proposition. If you settle on buying furniture with a credit card or loan, you might check out Experian CreditMatch™ to be paired with personalized credit offers. A move like this might even help you get your new home furnished on the double. END
 TITLE: How Does Refinancing a Mortgage Work? CONTENT: The process of refinancing a mortgage is similar to the process of getting one in the first place. You typically start by shopping around and comparing interest rates and other terms with various mortgage lenders to see which has the best offer. Then you compare that offer with the terms of your existing loan.\nIf your credit has improved since you were approved for your first loan, you may have a good chance of qualifying for more favorable terms.\nAs you go through this process, keep an eye on the closing costs. For example, if refinancing your loan with a new lender costs $5,000 upfront, and your new monthly payment is just $100 lower than what you're currently paying, you'll need to stay in the home at least 50 months to make the move worth it.\nAlso, watch out for things like prepayment penalties, which can cause problems down the road if you pay off the mortgage early or refinance again. END
 TITLE: How Does Refinancing a Mortgage Work? CONTENT: Reasons to Refinance a Mortgage\n-------------------------------\nThere are several reasons homeowners choose to refinance their mortgage loans. Here are some of the top ones to think about:\n*   **Lower interest rate and payment**: If your credit has improved or market rates have dropped since you got your first loan, you may be able to save money on interest with a lower rate and monthly payment.\n*   **Cash out**: If you have significant equity in your home, you may be able to cash out a portion of it with a refinance to pay bills, finance a large purchase, or buy out an ex-spouse in a divorce.\n*   **Change rate type**: If your original mortgage has an adjustable rate, moving to a loan with a fixed rate can help you avoid market fluctuations.\n*   **Change loan term**: You can typically qualify for a lower interest rate if you shorten your loan term from, say, 30 years to 20 or 15 years. Doing so can also save you money on interest over the life of the loan. If you lengthen your loan term, you can potentially lower your monthly payment.\nAs you consider your reasons for refinancing your mortgage loan, it's also important to consider the pitfalls of the process:\n*   Lengthening your loan term can result in paying more interest.\n*   Cashing out a portion of your equity will result in a higher loan amount on your new mortgage loan, which could increase your monthly payment.\n*   There's no guarantee you'll get better terms on the new loan.\n*   If market rates have increased enough since you got your first loan, a better credit score may not be enough to help you score a lower interest rate. END
 TITLE: How Does Refinancing a Mortgage Work? CONTENT: Different Types of Refinancing\n------------------------------\nThere are three general types of refinance loans you can apply for: rate-and-term, cash-out and cash-in. Here's what to know about each one.\n### Rate-and-Term Refinance Loan\nWith this type of loan, the goal is to change the interest rate, loan term or both without making any changes to the amount of the loan. This option is best if you're trying to save money on your monthly payment or switch your loan from an adjustable rate to a fixed rate.\n### Cash-Out Refinance Loan\nAs the name suggests, a cash-out refinance involves cashing out a portion of the home's equity. Doing so results in a higher loan amount, with the difference typically equal to the amount cashed out.\nWhile a cash-out refinance can help homeowners get the cash they need for certain activities, it typically results in a higher monthly payment and interest rate than a rate-and-term refinance loan.\n### Cash-In Refinance Loan\nMuch less common than a cash-out refinance is a cash-in refinance. This happens when the homeowner refinances their mortgage loan and brings money to the table to reduce their new mortgage balance.\nA cash-in refinance may be worth considering if you're underwater on your mortgage or want to get rid of private mortgage insurance, qualify for a lower interest rate, or keep your mortgage amount below certain limits. END
 TITLE: How Does Refinancing a Mortgage Work? CONTENT: How Do I Qualify for a Refinance Loan?\n--------------------------------------\nThe qualifications for refinancing a mortgage are similar to the criteria for a new mortgage loan. Lenders will consider several factors, including your:\n*   Credit history and score\n*   Payment history on your existing loan\n*   Income and employment history\n*   Equity in the home\n*   Home's current value\n*   Other debt obligations\nIf you meet a lender's standards based on these criteria, you'll receive an offer according to the risk you pose to the lender. If, for example, you have a spotless credit history, a solid income and a lot of equity in the home, you may get approved for better terms on the new loan.\nIf, however, your credit score has gone down since you got your first mortgage or you have more overall debt, you may have a harder time getting approved for more favorable terms. END
 TITLE: How Does Refinancing a Mortgage Work? CONTENT: How Will Refinancing Affect My Credit?\n--------------------------------------\nRefinancing a mortgage loan can affect your credit in a few ways. As a result, it's important to stay attentive to your current loan and be wise about the rate-shopping process. Here are some things to keep in mind:\n*   Applying for a mortgage loan will result in a hard inquiry on your credit report, which can knock a few points off your credit scores.\n*   Multiple credit inquiries in a short period—usually 14 to 45 days—typically only count as one on your credit report. But if you rate-shop over the course of a few months, your scores could drop from several inquiries.\n*   Your length of credit history could take a hit when your old mortgage loan is closed and replaced with a brand new one.\n*   Your credit scores could drop if you miss a payment on your old loan during the refinancing process.\nIf your credit is in great shape and you keep these things in mind, you may not see much of a negative effect on your credit history. But if your credit score is on the fence between fair and good, one wrong move could make it difficult to get approved for the new loan. END
 TITLE: How Does Refinancing a Mortgage Work? CONTENT: Keep Track of Your Credit Scores Before and During the Refinance Process\n------------------------------------------------------------------------\nAs you consider and apply for a refinance loan, it's important to know where you stand with your credit. Check your credit scores regularly to ensure you don't get blindsided by negative or erroneous information, and avoid taking out new credit before and during the refinance process, if possible. END
 TITLE: What Happens When You Pay Off Your Mortgage? CONTENT: Receive the Documents\n---------------------\nOnce your mortgage is paid off, you'll receive a number of documents from your lender that show your loan has been paid in full and that the bank no longer has a lien on your house. These papers are often called a mortgage release or mortgage satisfaction.\nYou'll likely receive:\n*   A statement indicating that the loan's balance has been paid in full\n*   A canceled promissory note (when you took out the mortgage, you signed one)\nIn many cases, your lender will file a certificate of satisfaction with your county government, which releases the home's deed to you and indicates that you are now the sole owner. Ask your lender if they will do this for you. If they will, be aware that it can take a few weeks or months for it to be filed. Once your lender has told you they've filed the documents, contact your local records office to confirm that their records show your mortgage has been cancelled.\nIf your lender says they don't file it for you, you can file it yourself—just check with your local county clerk or registrar to find out what the process entails. END
 TITLE: What Happens When You Pay Off Your Mortgage? CONTENT: Update Your Insurance and Taxes\n-------------------------------\nHere's the bad news: Your property taxes and homeowners insurance don't go away once you pay off your mortgage. If you have money in escrow that your lender used to pay your property taxes and homeowners insurance for you, it's possible that you'll have extra money leftover in your escrow account. If there is any extra, the lender should refund you by mailing a check. If you're not sure, ask your lender if you'll be getting a refund.\nOnce your mortgage is paid off, you no longer have a lender requiring you to have homeowners insurance. While you aren't federally required to have it, it's important to keep your coverage since it protects you financially if your home incurs major damage or if someone is injured on your property. If your homeowners insurance was paid by your lender via escrow, once your mortgage is canceled, contact your home insurance provider to inform them that you paid off the mortgage. Let them know that you are now the sole owner of the property and will now be handling the bill yourself. Also, make sure your premiums are set up to deduct from your bank account, not your lender's.\nProperty taxes, on the other hand, aren't optional, and you now have to remember to pay them. Check with your state, county and local taxing authorities to have your property tax invoice sent to you. Find out their billing frequency, since some charge annually and some charge quarterly, and make sure to start budgeting for this expense. END
 TITLE: What Happens When You Pay Off Your Mortgage? CONTENT: Allocate the Extra Funds\n------------------------\nOnce you no longer have a mortgage payment, a big chunk of your monthly income is now freed up for other goals and expenses. To make sure you don't fritter it away, put careful thought into what you'll do with the extra money. Here are some ideas:\n*   **Pay off your other debt.** Whether you have credit card debt, an auto loan, student loans or other obligations, consider paying off your debt with your new disposable income. By shortening your debt repayment timeline, you'll lower the amount of interest you pay over the life of the loan. Just make sure any other loans you have don't have a prepayment penalty.\n*   **Put it in an emergency fund.** Financial experts recommend having at least three to six months of living expenses saved in an emergency fund. That ensures when life's unexpected expenses pop up, such as a broken refrigerator, surprise medical bill or a last-minute flight for a family emergency, you can pay for it rather than going into debt.\n*   **Maximize retirement savings.** If your retirement account balance isn't where it needs to be, now is the perfect time to start using some of your former mortgage money to beef up that 401(k) or IRA. The sooner you start saving for retirement, the better due to compounding interest.\n*   **Work toward other savings goals.** What are your other financial dreams? Buying an investment property or vacation home? Going on a dream trip? Start setting aside some of this income toward your goal. Consider creating a separate savings account specifically for it to avoid any temptation to spend that money on something else.\n*   **Start investing.** While you can use this new cash cushion to invest in retirement, you can also put some of it toward other types of investments for shorter-term goals. Consider opening a brokerage account and buying stocks, bonds or mutual funds depending on your risk tolerance. Investing in the stock market can bring much higher returns than the low interest rates typical of checking and savings accounts, but it carries higher risk. If you're getting close to retirement, you could also invest in CDs, which are safer than investing in the stock market since the returns are somewhat low, but guaranteed. END
 TITLE: What Happens When You Pay Off Your Mortgage? CONTENT: Monitor Your Credit\n-------------------\nOnce all of the paperwork associated with your mortgage repayment is completed and filed, check your credit report to ensure it accurately reflects that your mortgage has been satisfied.\nHaving a mortgage in good standing can help your credit since on-time loan repayments over a long period looks great to lenders and creditors. Paying it off can have an impact on your credit score, though it's usually minor. If it was the only installment loan on your credit report, your mortgage dropping off could cause a slight decrease in your credit score since you'll no longer have a source of regular positive loan repayment or a mix of different credit types. If the rest of your accounts are in good standing, the change should be negligible, but it's smart to keep an eye on your credit just to make sure there are no big changes. END
 TITLE: What Happens When You Pay Off Your Mortgage? CONTENT: Get Prepared Now\n----------------\nDon't wait until you make your last payment to learn what you need to do when your mortgage is paid off. If your final mortgage payment is coming up soon, now is the time to start figuring out how your lender handles your documents, how to pay your taxes, and how you'll put that money to work once you no longer have a mortgage bill. END
 TITLE: What Is Inflation? CONTENT: What Causes Inflation?\n----------------------\nThree key factors can drive up inflation:\n1.  Demand for goods and services exceeds the supply, which can lead to higher prices.\n2.  The cost of producing goods and services goes up, with providers of goods and services passing along the extra expense to buyers.\n3.  A lot of money is floating around in the economy. When the pool of money available to spend deepens, it can pave the way for higher demand for goods and services. This, in turn, can trigger an uptick in the cost of producing those goods and services. For instance, that uptick might include a jump in wages paid to workers who generate those goods and services.\nMany economists sum up the cause of inflation as \"too much money chasing too few goods.\"\nEconomists and others measure inflation by tracking the following:\n*   **Consumer Price Index (CPI)**: This closely watched monthly index measures the average change, over time, in the prices paid by urban consumers in the U.S. for a big basket of goods and services. Among the many items in that basket are milk, chicken, rent, gas, prescription drugs, clothing, cable TV service and haircuts. From June 2020 to June 2021, the CPI jumped 5.4%. That was the biggest year-over-year increase in the CPI since August 2008, in the midst of the Great Recession.\n*   **Producer Price Index (PPI)**: This monthly index measures the average change, over time, in the prices that producers fetch for their goods and services.\n*   **Personal Consumption Expenditures Price Index (PCE)**: This monthly index reflects changes in the prices of goods and services that U.S. consumers purchase. It's similar to, but not the same as, the CPI. END
 TITLE: What Is Inflation? CONTENT: How Inflation Affects Your Money\n--------------------------------\nInflation weakens the purchasing power of your dollar. This means you pay more to buy goods and services than you did, say, in the previous month or previous year. For instance, Americans might see the price of a gallon of whole milk rise 30 cents in a one-year period. Or motorists may feel the pain at the pump, with the price of a gallon of unleaded gas soaring $1 during a one-year span.\nInflation can also harm people who keep cash in savings accounts. Why? Because the value of the saved money goes down when inflation is high. Even though your money will earn more if inflation pushes interest rates up, you may have to use your savings to compensate for the higher prices of goods. Inflation also can water down the value of money you've been holding in fixed-income investments like bonds and certificates of deposit (CDs). END
 TITLE: What Is Inflation? CONTENT: Who Benefits From Inflation?\n----------------------------\nWhile inflation can hurt consumers, it also can help some people.\nThose who can benefit from inflation include borrowers who have existing loans. How so? When inflation is high, the value of debt decreases. As the inflation rate goes up, the burden of future interest payments on that debt goes down.\nGenerally, investors in the stock market and real estate sector also may see a positive effect from inflation. Historically, stock prices have increased along with inflation. Meanwhile, owners of real estate might witness a spike in the value of their property when inflation spikes.\nAnd businesses might benefit from rising inflation if they wind up bumping up prices due to increased demand. Businesses also might end up paying more for materials or labor amid increasing inflation, however, which can erode their profits. END
 TITLE: What Is Inflation? CONTENT: How to Protect Your Money From Inflation\n----------------------------------------\nYou can't completely safeguard your money from being battered by inflation. But you can take action to help ease the financial blow.\nWhen inflation is on the rise, you might consider diversifying your investment portfolio to help protect your money. For instance, you may look at expanding the share of stocks and shrinking the share of bonds you're holding.\nFurthermore, you can commit to being better about budgeting. Creating and sticking to a budget can help you get a better handle on everyday expenses, lower your cost of living—and help loosen inflation's grip on your finances. END
 TITLE: What Is Inflation? CONTENT: The Bottom Line\n---------------\nRegardless of whether the economy is experiencing inflation or the opposite (deflation), it's always a good time to make sure your credit is in the best shape possible. You can do this by getting your free credit score and free credit report from Experian. END
 TITLE: Can You Use a Credit Card at an ATM? CONTENT: What Is a Cash Advance?\n-----------------------\nYou can think of a cash advance as a short-term loan from your credit card issuer.\nMost credit cards let you borrow a set amount of cash as an advance. The limit for the cash advance may be in the hundreds or even thousands of dollars. You probably won't be able to borrow as much as your regular credit limit would allow. Look at your credit card statement or reach out to the card issuer to find out the cash advance limit for your card.\nWhen you borrow cash using your credit card, the amount you borrow is added to your credit card balance. This has a few potential downsides, such as driving up your credit card's minimum payment and increasing your credit utilization, which is an important factor in your credit scores. If the amount you borrow is substantial, your credit utilization could increase drastically, and that could hurt your credit scores. END
 TITLE: Can You Use a Credit Card at an ATM? CONTENT: How Much Does a Cash Advance Cost?\n----------------------------------\nA cash advance is a quick way to get cash, but it normally comes at a price. Credit card cash advances typically charge fees as well as interest that could be much higher than you'd get on other types of loans, such as personal loans.\nThe interest on the amount you borrow often exceeds the APR for a credit card purchase. In fact, the cash advance APR frequently can be several percentage points higher than the card's standard purchase APR. For example, your purchase APR may be 13.99%, but your cash advance APR may be 19.99%. Generally, the interest on a cash advance starts accruing as soon you borrow the money.\nIn addition, the credit card issuer may hit you with a cash advance fee. An example of a cash advance fee is $10 or 5% of the cash advance amount, whichever is higher. On top of the cash advance fee, the operator of the ATM may charge a flat fee for using their machine. END
 TITLE: Can You Use a Credit Card at an ATM? CONTENT: How to Use Your Credit Card at an ATM\n-------------------------------------\nIf you have a PIN for your credit card, you can insert your card at an ATM, enter your PIN and withdraw cash. Most ATMs cap the dollar amount or number of transactions per day, however, so you may need to visit your financial institution to obtain the advance if you need to take out more than a few hundred dollars.\nIf you didn't get a PIN when you opened your credit card account, you can call your credit card issuer and request one. You might end up having to wait a few business days for the PIN. END
 TITLE: Can You Use a Credit Card at an ATM? CONTENT: Alternatives to Using Your Credit Card at an ATM\n------------------------------------------------\nBecause cash advances typically come with high costs and can affect your credit score, it's a good idea to look into alternatives. Those options include:\n*   **Loan from friends or family:** You may be able to ask a friend or relative for a loan. Be sure, though, to treat your loan just like you would a loan with a bank. Put your repayment agreement in writing and keep up your end of the bargain by making regular payments (potentially with interest).\n*   **Lending circle:** You may not be familiar with a lending circle, but it could be a valid alternative to a cash advance. A lending circle lets you borrow money and pay little to no interest—and your credit score might even get a boost. The nonprofit Mission Asset Fund provides lending circles and reports lending activity to the three national consumer credit bureaus (Experian, TransUnion and Equifax).\n*   **Use the credit card to make a purchase:** Instead of getting a cash advance and paying fees and higher interest, it might make more financial sense to simply make the purchase with the card.\n*   **Debt consolidation loan:** A debt consolidation loan rolls existing debt into one new loan, normally at a lower interest rate than the existing debt. This enables you to make a single monthly payment rather than many payments to various lenders. A debt consolidation loan can free up more money in your budget and help you avoid the need for a cash advance.\nThere are other options as well, but they are best to be avoided. These include payday loans, title loans and pawn shop loans. People often turn to payday loans because they do not require collateral. Payday lenders usually charge high fees as well as triple-digit APRs. Unfortunately, these loans can worsen your financial situation if you don't pay them off as soon as possible. Payday loans are a last-ditch alternative to cash advances. END
 TITLE: Can You Use a Credit Card at an ATM? CONTENT: The Bottom Line\n---------------\nA cash advance from a credit card can be a short-term fix when you're short on cash. Be sure to exhaust other options, such as a loan from friends or family, before you take advantage of a cash advance. If you're not diligent about paying off a cash advance as soon as possible, the associated APRs and fees can set you back even further financially. If you have the time, making an effort to improve your credit standing can help you qualify for more borrowing options that won't cost you as much. END
 TITLE: 4 Ways to Save Money on Your Mortgage CONTENT: 1\\. Refinance Your Mortgage\n---------------------------\nRefinancing your mortgage involves taking out a new loan to pay off your outstanding balance. You'll then have a new monthly payment that may be lower than what you were paying before. Refinancing can also be an opportunity to change the terms of your loan or lock in a lower interest rate. Both ways could help you save a significant amount of money on your mortgage. At the time of this writing, the average rate for a 30-year fixed mortgage is 2.87% (2.15% for a 15-year fixed mortgage).\nLet's say you owe $150,000 on a fixed mortgage that has 15 years left in its repayment term. Assuming an interest rate of 3.25%, here's how the savings would shake out if you were to refinance to a lower rate.\nIn this example, refinancing would shave over $14,000 off the amount of interest you'd pay over the life of the loan while also reducing your monthly payment. However, it's worth noting that refinancing typically comes with fees that can cut into your savings. Lenders set their own refinance loan fees, so it's wise to shop around for the best deal. Your credit score is also an important consideration when deciding whether to refinance. You'll likely need a minimum FICO® Score☉ of 620, though a higher score puts you in the best position to land a lower rate. END
 TITLE: 4 Ways to Save Money on Your Mortgage CONTENT: 2\\. Make an Extra Payment Every Year\n------------------------------------\nDialing up your loan payments can help you pay off your mortgage faster—and ultimately save money on interest. You can go about this in a few different ways. One option is to funnel any cash windfalls toward your principal balance. This can include tax refunds, bonuses, raises or other \"found\" money you come into throughout the year. Another approach is to divide your monthly mortgage payment by 12, then add this amount to your regular monthly bill. At the end of one year, you will have made an extra payment.\nThat may not feel like much, but an additional payment every year adds up over the long run. Let's look at the following example:\nIf you added just one extra mortgage payment per year, you'd pay off your balance two years earlier—and save $12,217 in interest charges.\nYou can save money in a similar way by paying your mortgage every other week, as opposed to making one payment per month. Making biweekly mortgage payments adds up to one extra payment per year. Just keep in mind that you'll have to check with your mortgage servicer first to see if they'll allow you to structure your payments in this way. END
 TITLE: 4 Ways to Save Money on Your Mortgage CONTENT: 3\\. End Your PMI Early\n----------------------\nIf you put less than a 20% down payment on a conventional mortgage loan, you'll typically have to pay private mortgage insurance (PMI). It's something lenders require to protect themselves should the homeowner default on their loan. Every loan and lender are different, but it isn't unusual to pay $30 to $70 per month for every $100,000 borrowed, according to Freddie Mac.\nIf you make at least a 20% down payment when buying your home, PMI shouldn't come into play—but not every homebuyer can put down that much. The good news is that you can eliminate your PMI payment once you cross the 20% equity threshold. This can be done earlier if you accelerate your monthly payments to reach that threshold faster. If you purchased your home with an FHA loan, mortgage insurance won't automatically drop off and you'll have to refinance.\nAnother option for conventional loan borrowers is to arrange for a fresh home appraisal with your lender, which will likely cost you a few hundred dollars. If your property's value has gone up, you could drop your PMI sooner rather than later as your home value is used to determine your equity. You can also consider making one lump-sum payment that decreases your loan balance enough to get you the equity you need. END
 TITLE: 4 Ways to Save Money on Your Mortgage CONTENT: 4\\. Review Your Budget\n----------------------\nOne of the most effective ways to save money on your mortgage is to pay it off ahead of schedule. Reexamine your budget to see if you're able to free up any extra money each month to put toward your home loan. This begins with tracking your spending to understand where your money goes during a typical month. The simple act of reviewing your bank and credit card statements could reveal areas of overspending that you can trim or eliminate altogether. If your expenses are in good shape, another option is to pick up a side gig or negotiate a pay raise to bring in some extra income.\nAs you decide your next move, it's important to remember that not all debt is created equally. If you have other debt with higher interest rates than your mortgage, it may make more financial sense to prioritize those accounts. You'll also want to make sure you aren't neglecting your future. Saving for retirement may not feel urgent right now, but putting it off to pay more toward your mortgage could leave you financially stranded in your golden years. Depending on your unique financial situation, you may be better off accelerating your 401(k) contributions than paying off your mortgage early. END
 TITLE: 4 Ways to Save Money on Your Mortgage CONTENT: The Bottom Line\n---------------\nIf you're thinking about refinancing your mortgage, maintaining strong credit is key to securing a good rate. You can get your credit report from all three credit bureaus for free through AnnualCreditReport.com. Not only that, your Experian credit report and your FICO® Score based on Experian data is available for free. Solid credit can also help improve your overall financial wellness. This goes hand in hand with achieving your short- and long-term financial goals. END
 TITLE: Best and Worst Ways to Use a HELOC CONTENT: What Is a HELOC?\n----------------\nA HELOC is a revolving credit line that lets you borrow against your home equity, using your home as collateral. (Your equity is your home's assessed value minus your mortgage balance.) You can typically borrow 60% to 85% of your home's equity. Most HELOCs have variable interest rates, usually with a rate cap.\nYou can draw as much as you need from the HELOC up to the borrowing limit during the draw period (usually 10 years) and make interest-only payments on the amount you borrow. Unlike other types of revolving credit such as credit cards, HELOCs aren't counted as part of your credit utilization ratio by the FICO credit scoring model, so your HELOC balance won't negatively affect your FICO® Score☉ .\nAfter the draw period, you'll have to repay the loan in full, generally over 20 years. (You can also choose to refinance it.) HELOC payments rise substantially at this point, so be sure to budget for the cost. Some HELOCs let you pay down principal during the draw period, making post-draw-period payments more manageable.\nLike HELOCs, home equity loans use your home as collateral. Unlike HELOCs, however, they are installment loans: You receive a lump sum and begin making fixed monthly payments immediately. Most home equity loans have a fixed interest rate. END
 TITLE: Best and Worst Ways to Use a HELOC CONTENT: What's a Good Way to Use a HELOC?\n---------------------------------\nHELOC payments can soar when the draw period ends, and you could lose your home if you can't repay the loan. Because of this risk, HELOCs are best used for the following:\n*   **Home improvements:** HELOCs are well-suited to finance home improvements that are completed in stages because you can draw money as you need it. If the improvements add to your home's value, interest paid on the HELOC may be tax-deductible.\n*   **Major home repairs:** Discovering your home needs a new roof or repiping can put a big dent in your budget if your emergency fund can't cover the cost. A HELOC can help pay for costly repairs, and interest on the HELOC can be tax-deductible if the repairs increase the home's value.\n*   **Financial emergencies:** If you lose your job, face a major medical bill or other financial crisis, a HELOC can help you get back on your feet.\n*   **Paying off credit card debt:** Using a HELOC to pay off high-interest credit card balances may be a wise move, but only if you have a well-thought-out plan to avoid building up that debt again. Otherwise, you could find yourself with high credit card balances plus HELOC payments. END
 TITLE: Best and Worst Ways to Use a HELOC CONTENT: What Are Bad Ways to Use a HELOC?\n---------------------------------\nAside from putting your home at risk, HELOCs also eat up precious home equity. During the Great Recession, many borrowers whose home values declined found they owed more than their homes were worth. To protect your equity, avoid using HELOCs for:\n*   **College tuition:** HELOCs are often promoted as a way to finance college, but federal student loans are generally a smarter choice. With federal student loans, you may qualify for loan deferment, forbearance, forgiveness or income-based repayment plans if you need it, and interest rates for new undergraduate federal student loans are generally lower than for HELOCs. Students can also apply for scholarships, select a budget-friendly school or start at community college to save money on college costs.\n*   **Vacations or weddings:** Rather than go into debt for a dream vacation, wedding or honeymoon, create a budget to save for your goal, or find budget-friendly ways to travel or host your event.\n*   **Buying a car:** With good credit, you can probably get an auto loan with a lower interest rate than a HELOC. If you can't repay the loan, you could lose your car, but you won't lose your home.\n*   **Starting a business:** Instead of putting your home in peril for an untested business idea, explore financing options such as investments or loans from friends or family, credit cards, crowdfunding or business loans.\n*   **Investing:** HELOCs can free up cash to invest in stocks or rental properties, but returns on such investments aren't guaranteed, making them risky bets. END
 TITLE: Best and Worst Ways to Use a HELOC CONTENT: Alternatives to HELOCs\n----------------------\nIf a HELOC isn't for you, consider these other ways to finance big purchases or unexpected expenses.\n*   **Personal loan:** Personal loans are installment loans that typically have fixed interest rates, require no collateral and can be used for any purpose. Interest rates are generally higher than for HELOCs, and interest is not deductible. Personal loans are available for up to $100,000. Experian CreditMatch™ can help you find loans fitting your credit profile.\n*   **Personal line of credit:** Borrowers with good credit may qualify for a personal line of credit from their bank or credit union. Most personal lines of credit are unsecured with a draw period of a few years. Unlike HELOCs, these unsecured credit lines count toward your credit utilization ratio, so drawing more than 30% of your limit may hurt your credit score.\n*   **Balance transfer card:** If you have good credit, a balance transfer card with a low or 0% introductory annual percentage rate (APR) can help you pay down high-interest credit card balances. Transfer balances to the new card, pay them off before the introductory period ends and you'll pay no interest.\n*   **Cash-out home refinance:** This option refinances your mortgage into a new, larger mortgage; you receive the difference in cash. If interest rates have dropped since you got your mortgage, a cash-out refi can also help you save on interest. However, cash-out refis are time-consuming and require starting your mortgage clock all over again, so carefully weigh the costs and benefits.\nKeep in mind that borrowing money isn't the only way to pay off debt. Investigate all your options. For instance, if you have medical debt, you can ask about payment plans, negotiate with the medical provider or seek financial assistance. Overwhelmed with credit card debt? A reputable credit counselor can create a debt management plan for you and work with your creditors to lower interest rates, waive fees and reduce your payments. END
 TITLE: Best and Worst Ways to Use a HELOC CONTENT: Is a HELOC Right for You?\n-------------------------\nWhile HELOCs do offer lower interest rates and greater flexibility than many other financing options, the tradeoff is putting your home up as collateral. Before choosing a HELOC, carefully consider how it will affect your home equity, how you will pay it back, and whether less risky financing alternatives are a better fit for your needs.\nTo qualify for a HELOC, you'll need a good credit score plus significant home equity. Before applying for a HELOC or any loan, check your FICO® Score and credit report. If your credit score needs work, you can help improve it by paying down debt, maintaining low credit utilization and not applying for new credit until you're ready to apply for the HELOC. Once you have a HELOC, make payments on time to help boost your credit score. END
 TITLE: What Is a Guarantor for an Apartment and Do I Need One? CONTENT: Some landlords or property managers require select applicants to have a guarantor, or someone who agrees to cosign the lease and assume financial responsibility for the unit. The terms \"guarantor\" and \"cosigner\" are often used interchangeably, but they aren't quite the same.\nA guarantor is responsible for the rent and any other charges incurred during the lease term if the tenant cannot pay. However, this individual doesn't live at the property or have a right to occupy it. A cosigner, on the other hand, is a roommate or spouse of the tenant that lives in the apartment. They also sign the lease and are responsible for rent payments, but have a right to occupy the unit. END
 TITLE: What Is a Guarantor for an Apartment and Do I Need One? CONTENT: When You May Need a Guarantor\n-----------------------------\nThere are several reasons you may need a guarantor to get your rental application approved. Common red flags that may lead a landlord to require a guarantor include:\n*   **Credit issues:** If you have little or no credit history, bad credit or a bankruptcy on your credit report, the property manager or landlord may have reservations about your ability to make timely rent payments.\n*   **No rental history:** Many landlords or property managers require first-time tenants to have a guarantor. Once you've built up your rental history, you can possibly lease elsewhere without a personal guarantor.\n*   **Unstable employment history:** Frequent gaps in your employment history could equate to income problems in the near future. Or, if you are a college student without a full-time job, the landlord may want a guarantee that your rent will be paid, even if you have student loans or savings to cover rental costs.\n*   **Minimal income:** Many landlords require the household income to be at least three times the monthly rent to ensure the tenant can afford rent payments and other living expenses. Landlords or property managers will request proof of income and may confirm this information with your current employer.\nThis list is not all-inclusive, and you will be notified if you need a guarantor once your landlord or property manager reviews your application. You can also ask the leasing agent about general qualification criteria for renters before you apply for an apartment to know if you should start looking for a guarantor.\nIf you plan to live alone and can't get approved for an apartment on your own, you may be left with no choice but to find a guarantor. But if you don't mind having a roommate to help save money, you may not need a personal guarantor if they meet the qualification criteria for the unit. END
 TITLE: What Is a Guarantor for an Apartment and Do I Need One? CONTENT: How to Find a Guarantor\n-----------------------\nParents, close relatives and friends are a good place to start when you're looking for a guarantor. Anyone you ask should be at least 21 years of age, financially stable and have good credit. It's also a plus if they currently own a home. They will typically be required to complete a rental application, submit income and financial documentation and undergo a credit check.\nHaving trouble finding a personal guarantor? There are guarantor services that can help you get the keys to your new apartment—but you'll pay for the convenience. This option generally costs between 4% and 10% of the annual rent, and the fee is payable before signing the lease. So, a $1,500 rental on a 12-month lease with a 7% fee from a guarantor service will cost you $1,260 annually. If a guarantor service is your only option, shop around and carefully review each company's policies and fees before moving forward. END
 TITLE: What Is a Guarantor for an Apartment and Do I Need One? CONTENT: Rent With Confidence\n--------------------\nIt's possible to avoid surprises when applying for an apartment. Reach out to the landlord to learn more about the income and credit qualification criteria before you get your heart set on a place. Also, check your credit report and FICO® Score☉ for free through Experian to know where your credit stands. If necessary, take time to improve your credit before you apply.\nIf your credit health is up to par, you meet the income requirements and you don't have an adverse rental history, you shouldn't have much trouble getting your apartment application approved. But if you need a guarantor, consider parents, family members or close friends who meet the qualifications and know that you'll follow through on your lease agreement. Once you have that guarantee in place, your new landlord will likely be more comfortable handing over the keys. END
 TITLE: 3 Reasons to Buy a Multifamily Home CONTENT: What Is a Multifamily Home?\n---------------------------\nMultifamily homes can take many forms. Unlike single-family homes, which are designed for single occupancy, multifamily dwellings contain more than one housing unit. Duplexes, apartment complexes and townhouses all fall under this umbrella. These homes allow multiple families to live in their own private sections of one property.\n3 Reasons Why Buying a Multifamily Home Is a Good Idea\n------------------------------------------------------\nInvesting in residential real estate can enable you to make money by renting to tenants. The idea is to charge enough rent to cover your monthly expenses (including taxes and insurance) while also turning a profit. You may also earn more on the back end if you sell the property for a profit at a later time. Multifamily properties are unique in that they typically provide these additional financial benefits:\n1.  **Reduce your living costs.** Many investors are attracted to multifamily homes because they can significantly decrease their own housing costs. For example, the average price for a single-family home in Orlando is $300,275, according to Zillow, while there are duplexes on the market for about 25% to 40% less.\nYou can reduce your costs even more if you occupy one of the units yourself. Every dollar you charge in rent will reduce your monthly mortgage payment. Freeing up this kind of income can provide financial peace of mind and help you reach your financial goals faster.\n1.  **Grow your investment portfolio.** Whether or not you choose to live in one of the units, adding a multifamily home to your investment portfolio can provide some diversity. Think of it as another way to potentially grow your wealth over the long term _and_ shore up your nest egg. Your investment returns can increase even more once you're free from mortgage payments and own the property outright. Either way, the money you spend maintaining your rental units is tax-deductible. Like most investments, however, there is no guarantee of returns—in this case, that your multifamily home's value will increase over time or that you'll be able to rent out the units.\n2.  **Expand your housing options.** Having the additional space that a multifamily home provides can come in handy if you need to take in an aging parent or adult child. As of July 2020, more than half of young adults lived with one or both of their parents, according to the Pew Research Center. Renting to a family member (or letting them stay for free) provides privacy and a housing solution. END
 TITLE: 3 Reasons to Buy a Multifamily Home CONTENT: What to Consider Before Buying a Multifamily Property\n-----------------------------------------------------\nBefore making a bid on a multifamily property, it's wise to consider the following details:\n*   **Your financial health:** Like other types of investments, you'll want to make sure you're on solid financial ground before pursuing a multifamily home. In addition to the costs associated with buying the home, you'll also need to be ready to address maintenance issues big and small. This can include everything from a leaky roof to a burst pipe. Costs related to homeowners insurance and property taxes will fall on you as well. It's also smart to pay down high-interest debt and build up your emergency fund before investing in a multifamily home to avoid financial stress that could harm your credit.\n*   **Your ability to be a landlord:** Be prepared to find reliable tenants, which involves screening applicants and running background and credit checks. From there, you'll have to make yourself available to fix problems with the property as they arise. Hiring a property manager can take this weight off your shoulders, but adds another expense to your ownership costs.\n*   **Your potential return on investment:** Buying a multifamily home doesn't guarantee future investment returns. The housing market in your area will play an important role in helping you determine if a property is right for you. Is it likely to attract tenants? And what do the average market rents and property taxes look like? Also consider whether the property values in the area are increasing or decreasing. You'll also want to factor in the cost of your down payment, monthly mortgage and closing costs. END
 TITLE: 3 Reasons to Buy a Multifamily Home CONTENT: You'll typically need a larger down payment—often 20% to 30%—when purchasing an investment property. However, multifamily homes with fewer than five units may provide a loophole. If you plan on living in one of the units, you may qualify for more traditional financing options. FHA loans allow for down payments as low as 3.5%, for example. If the home will be a traditional investment property that you will not occupy, you'll need to have good credit to qualify for financing. The minimum credit score for a mortgage used for an investment property is usually 620.\nNo matter how you finance your multifamily property, you'll want to pay extra attention to your home inspection. The last thing you want is to finalize the transaction only to find costly home repairs waiting for you on the other side. If all looks good, you'll move forward with the contract. Just keep in mind that your closing costs will increase your final spend by another 2% to 5% of the home price. END
 TITLE: 3 Reasons to Buy a Multifamily Home CONTENT: The Bottom Line\n---------------\nBuying a multifamily home can be a great investment that reduces your housing costs and unlocks additional monthly income. It can also grow your wealth over the long run, though it's not without risks. The first step is getting your credit as strong as it can be so you can qualify for the best financing options. Experian's free credit monitoring can help you get there. END
 TITLE: Prepare Your Finances to Care for an Elderly Family Member CONTENT: Start the Conversation\n----------------------\nAging is a natural process of life, but there are a lot of things to think about when it comes to caring for older family members. While it may be tempting to plan everything yourself, it's helpful to open up a discussion with the family member whose care you're considering. You might be surprised by what you find. For example, you might assume they want to live with you in their older years, but you discover that they'd in fact prefer to live independently or in another setting where they can receive care from someone else.\nConsider asking questions that show you care about their hopes for their future. What standard of living do they envision for themselves? What do they imagine they'll be doing in their later years? Do they plan on retiring or continuing to work? If they're no longer able to take care of themselves or their home, have they thought about where they'd prefer living? Let them know you're asking in order to ensure they get the care they need to thrive.\nOne of the biggest considerations around eldercare is money—specifically, who will care for your loved one and how much it will cost. Talking about money can be hard, but it's a critical part of the discussion. END
 TITLE: Prepare Your Finances to Care for an Elderly Family Member CONTENT: Collect More Information\n------------------------\nBefore you jump into action planning for an older family member's care, you'll need to gather more information.\n*   **Get the full financial picture.** It might be a tough conversation, but you'll want to figure out how much money your parent (or other family member) has from all sources, including retirement, Social Security, any real estate they own (like their home), savings or other types of accounts. Depending on your loved one's personal or cultural customs, you might have to determine how much cash they have and where they physically store it for safekeeping.\n*   **Get organized.** It's helpful to have documents with all your loved one's financial information in one safe place: It could mean the difference between speedy help or denial of benefits. For example, if your older loved one needs to apply for financial assistance (like Medicaid) later, they'll need to prove how much they make and why they need financial help—and that often comes with lots of paperwork. Some types of financial documents they might need to have include:\n    *   A list of all bank accounts and access to statements\n    *   A list of loans and debts, including all credit accounts\n    *   Retirement-related paperwork like pension or 401(k) information\n    *   Tax returns\n    *   Any investment records like bonds and stock certificates\n    *   Deeds to any properties they own\n*   **Ask specific questions.** Does your loved one have a will, living will or living trust? Do they have physical copies of vehicle titles or documents related to a business they own? Where can you find these documents if and when you need them? The sooner you have these conversations, the more likely you'll be prepared when the time comes to care for aging loved ones.\n*   **Get educated.** Take the time to do some research on the options available to you for eldercare support, such as Medicare and Medicaid. Getting a grasp on the differences and nuances can ensure the best outcomes. It's important to note, for example, that Medicare doesn't have income limits, while Medicaid does. Additionally, Medicaid covers many nursing home residents, but not a lot of seniors in residential care or home care have Medicaid due to long waiting lists and other challenges. Prepare for your transition into being an adult caregiver by reading books and blogs, attending workshops and connecting with others who are in similar situations. END
 TITLE: Prepare Your Finances to Care for an Elderly Family Member CONTENT: Don't Forget About You\n----------------------\nAs you consider what the future could look like for your loved one, don't forget that you're a critical part of it too. This means you'll need to take a close look at your own financial situation as well.\nWill you need to be completely financially responsible for their care? If so, you'll need to factor that into your budget and long-term financial goals. For example, you might need to focus on paying down debt first or adjusting your budget to include a monthly allowance for caregiving costs. You might also need to start or boost your emergency fund in the event you need to take time off work or pay extra expenses. Researchers estimate that out-of-pocket costs to care for an aging parent can be upwards of $100,000, so it's never too early to start saving.\nThis could also be a good time to start researching ways you can get financial support for your loved one if needed. For example, try to get familiar with benefits they might qualify for, like Medicare or Medicaid. Research caregiver tax breaks you might be able to take advantage of too. If times really get tough, you may need to explore financial assistance options for yourself or for your loved one. END
 TITLE: Prepare Your Finances to Care for an Elderly Family Member CONTENT: Make a Plan\n-----------\nAfter you talk to your loved one, gather important paperwork and other information, and take a look at your personal finances, it's time to make a plan. At a minimum, you'll need to figure out what you can afford to do for your family member, how much it will cost, and any cultural or religious considerations that might impact your decisions.\nWhen it comes to cost, the biggest factor is where your loved one will live:\n*   By far the most expensive care option is living in a nursing home facility, which can run upwards of $90,000 per year. Nursing homes provide round-the-clock care and licensed medical supervision to residents.\n*   Next up in terms of expense is in-home care services provided by a home health aide, which can cost around $55,000.\n*   An assisted living facility can provide social activities and personal care (but not to the same extent as nursing homes). The annual median cost for this option is around $52,000.\n*   Adult day health care is another option. These centers provide light supervision and social activities to help give caregivers a break. The annual costs for this hover around $20,000.\n*   The cheapest option is likely you acting as the caregiver. There are significantly fewer additional costs associated with providing care for your own parent or other loved one at home. However, costs can add up when you factor in transportation, medical devices, food, medical bills and lost hours from work due to increasing eldercare responsibilities.\nSo what can you do to ensure you cover all your bases? First, consider seeking outside help or resources. Talk to a financial advisor or lawyer about ways you can both support your loved one and protect yourself financially from unexpected expenses related to caring for them. Get information about wills and trusts, advanced directives and access to accounts, and help your loved one establish power of attorney for finances, health care decisions and property management. Additionally, make sure to talk to your loved one and decide who will manage their money. This is also a good time to consider purchasing long-term care insurance, which might help cover some of the costs of caring for them.\nWhile it may be tempting to put off making a plan, the data is clear: The number of adults aged 85 and older—the group that most often needs help with basic personal care—is predicted to more than double by 2040. Tackling some of these issues now could save you a lot of stress in the future. END
 TITLE: Prepare Your Finances to Care for an Elderly Family Member CONTENT: The Bottom Line\n---------------\nWhen it comes to taking care of an older family member, the financial responsibilities can seem overwhelming. If you find yourself in that position, having a solid plan and knowing what resources are available can give you peace of mind and keep your financial future healthy. END
 TITLE: Government Assistance for Low-Income Families CONTENT: Income Benefits\n---------------\n### Unemployment\nIf you lose your job, you might be eligible for benefits through the U.S. Department of Labor's unemployment insurance program. This program provides cash benefits for a limited time to people who recently lost a job through no fault of their own. If you lost your job for some other reason—for example, if you were fired or you quit—it's possible you could still be eligible for benefits, but it'll likely require an investigation and more paperwork. What if you're self-employed? As long as you have the proper documentation and fit the eligibility requirements, there's a chance you can qualify.\nEach state sets its own unemployment benefits eligibility guidelines, so you should file your claim with the state where you worked. If you worked in a different state from where you now live, you should still reach out to your current state's unemployment agency to ask about how to file your claim with other states.\nIf you recently lost your job, contact the unemployment insurance program as soon as possible: There's usually a lag time of two to three weeks between when you file your claim and when you receive your first benefit check—though it could take longer. To hasten the process, get organized. No matter which state you apply in, you'll at least need to document your work history, the address of your former employer and the dates you worked there, and identification such as a driver's license or passport. To file a claim and apply for unemployment, visit your state's website.\n### Supplemental Security Income (SSI)\nSSI is a federal program that helps support low-income Americans who are blind, disabled or 65 years of age or older and unable to provide for themselves. SSI cash benefits are paid out monthly and are intended to cover basic needs like food, housing and clothing. SSI is different from Social Security, which determines eligibility based on your work history. Some people who are eligible for SSI might also be eligible for Social Security benefits, but they're different programs. You can take a short quiz on the Social Security Administration website to find out if you meet eligibility requirements for SSI.\n### Temporary Assistance for Needy Families (TANF)\nTANF is a program focused on helping to support eligible families with a monthly cash payment to cover basic needs. There are usually limits on how long you can get the payments (rules vary by state), so make sure you have a plan in place to make ends meet. Like many other assistance programs, you'll need to look up the state you live in to see the list of eligibility requirements and apply locally.\n### Child Tax Credit\nThe child tax credit is a tax benefit that helps people support their families. Due to the increased hardship many families face during the pandemic, the federal government increased the benefit to up to $3,600 per child for 2021. The updated child tax program also includes an advance of the tax credit, paid out on a monthly basis to eligible families with children younger than 18 years of age in 2021. You can check to see if you're enrolled to receive payments on the IRS website.\n### Earned income tax credit (EITC)\nEITC provides some relief for low- to moderate-income workers and families. At tax time, you apply the credit directly toward your tax bill, and if you're eligible, you'll likely get a refund. You can check to see if you qualify by using this tool on the IRS website. END
 TITLE: Government Assistance for Low-Income Families CONTENT: Food Assistance\n---------------\n### Supplemental Nutrition Assistance Program (SNAP)\nSometimes called \"food stamps,\" the SNAP program provides food benefits to low-income families. To get SNAP benefits, you'll need to apply through your state's program. Each state has a different application form and process, and you'll have to meet certain requirements (like income limits). Additionally, there may be rules about how long you can receive SNAP that vary by state. END
 TITLE: Government Assistance for Low-Income Families CONTENT: Medical Benefits\n----------------\nIf your income is low and you need help with medical costs for you or your family, you might be eligible for additional programs focused on meeting the health needs of Americans with limited income.\n*   **Medicaid****:** Medicaid provides free or low-cost health care to those with low income including people with disabilities, children, pregnant women and the elderly. You can apply through the government's health insurance marketplace or through your local state agency.\n*   **Children's Health Insurance Program (CHIP)****:** CHIP is a government health care program that fills the gap between Medicaid and private insurance to cover uninsured children in families who make too much to qualify for Medicaid, but not enough to afford private health insurance. You can apply to CHIP the same ways you apply for Medicaid. END
 TITLE: Government Assistance for Low-Income Families CONTENT: Who's Eligible for Government Financial Assistance?\n---------------------------------------------------\nThere are many government benefit programs, and all of them have their own requirements you need to meet. For example, there may be requirements that have to do with citizenship status, family size or income. Luckily, a lot of programs require many of the same types of documents—government-issued photo IDs, passports, employment authorization cards and pay stubs, for instance. Check with your state agency's local office to confirm your eligibility. You can also get a sense of whether you'll qualify or not by doing your research ahead of time. END
 TITLE: Government Assistance for Low-Income Families CONTENT: What to Watch Out For\n---------------------\nOne note of caution: Despite what you may have heard, the government doesn't give out loans or grants directly to citizens. Don't share your personal or financial information with anyone claiming otherwise. It can seem like a hassle to go through the official channels for government benefits, but it will save you a lot of trouble in the future. END
 TITLE: Government Assistance for Low-Income Families CONTENT: The Bottom Line\n---------------\nIf you're struggling financially, it's important to know what options are available to you. The federal government offers a wide variety of assistance programs geared toward helping those in need with the basic necessities—from food and housing to medical care. There's no shame in reaching out for assistance when times get tough. Most government assistance programs have time limits on them, so being proactive about your financial situation and planning ahead can help you build a solid foundation, no matter what season of life you're in. END
 TITLE: Celebrities, Recent Graduates Weigh in on Personal Finances CONTENT: Young Adult Consumers Turn to Internet, Social Media for Education\n------------------------------------------------------------------\nBorn at a time when the U.S. was transitioning to an increasingly online economy, it's no surprise that Generation Z is learning about personal finance via social media and the internet. Though family members were the most popular source of financial education for those surveyed (39%), a third (33%) said they sought out financial advice using the internet, and 31% said they did so through social media, according to our survey. (Respondents could choose more than one answer.) END
 TITLE: Celebrities, Recent Graduates Weigh in on Personal Finances CONTENT: Most College Grads Feel Optimistic About Their Finances\n-------------------------------------------------------\nDespite the COVID-19 pandemic and subsequent economic crisis, recent college graduates are optimistic about their future and finances. When asked how they feel about their future generally, 74% of survey respondents said they felt optimistic and hopeful. When asked specifically about their finances, a smaller yet still significant portion of respondents—64%—reported feeling equally positive.\nIn our current economic climate, sentiments like these are promising. Digging deeper with this group of consumers, it was clear that most felt positive about the future, although money was still a concern. More than half of respondents—51%—said that having enough money to support their lifestyle impacted how they thought about their future.\nWhen asked what \"firsts\" (first experiences) they are looking forward to most post-college, 43% reported being most excited about getting an \"adult\" job. Another 40% of those asked said they looked forward to \"feeling independent.\"\nMany respondents seemed to have aspirations of putting their finances first as they embarked on their careers. Nearly half—44%—said they would use their paycheck from their first job for saving. Another 35% said they planned to use their earnings for investing—a sign that these recent grads have financial security in mind. END
 TITLE: Celebrities, Recent Graduates Weigh in on Personal Finances CONTENT: Celebs and Influencers on What They Wish They'd Known About Money\n-----------------------------------------------------------------\nTo add context to our survey results, Experian reached out to several celebrities and influencers to see what was important to them when they graduated from college and what they wished they knew as they ventured out on their own.\n### Mario Lopez, Actor\/Host\n**What was your most important \"first\" that you looked forward to when you first went out on your own or graduated from college?**\n**_Mario Lopez_****_:_** _First \"adult\" apartment\/house_\n**What do you wish you knew about finances when you left your parents' home and went out on your own?**\n**_Mario Lopez: \"_**_I wish I knew how to budget accordingly. When you're young, you feel like you have time on your side. That time should be used in having your money work for you. They say that youth is wasted on the young, but so is money.\"_\n### Diggy Simmons, Actor\/Recording Artist\n**What was your most important \"first\" that you looked forward to when you first went out on your own or graduated from college?**\n**_Diggy Simmons_****_:_** _First \"adult\" job_\n**What do you wish you knew about finances when you left your parents' home and went out on your own?**\n**_Diggy Simmons:_** _\"I wish I had a better understanding of how money works and the importance of having great credit. Since then, I have learned how important it is to pay your bills on time and_ _build your credit__.\"_\n### Taylor Price, Financial Educator\/Activist\n**What was your most important \"first\" that you looked forward to when you first went out on your own or graduated from college?**\n**_Taylor Price_****_:_** _Feeling independent_\n**What do you wish you knew about finances when you left your parents' home and went out on your own?**\n**_Taylor Price:_** _\"I wish I knew the true value of a dollar, how much work it takes to make that dollar, and how to grow that dollar into a passive money tree. I wish the conversation of_ _passive\/active_ _happened earlier in life.\"_\n### Teala Dunn, Actress\n**What was your most important \"first\" that you looked forward to when you first went out on your own or graduated from college?**\n**_Teala Dunn_****_:_** _First \"adult\" apartment\/house_\n**What do you wish you knew about finances when you left your parents' home and went out on your own?**\n**_Teala Dunn:_** _\"I really wish I knew more about utility bills, gas, water and power, and that they are all separate bills.\"_\n### Sara Finance, Financial Social Media Influencer\n**What was your most important \"first\" that you looked forward to when you first went out on your own or graduated from college?**\n**_Sara Finance_****_:_** _Feeling independent_\n**What do you wish you knew about finances when you left your parents' home and went out on your own?**\n**_Sara Finance:_** **_\"_**_I wish I knew about the importance of having an_ _emergency fund__. Ideally, having savings to cover six months of expenses is a must, especially because no job income is guaranteed.\"_\n### Isabella Gomez, Actress\n**What was your most important \"first\" that you looked forward to when you first went out on your own or graduated from college?**\n**_Isabella Gomez_****_:_** _Feeling independent_\n**What do you wish you knew about finances when you left your parents' home and went out on your own?**\n**_Isabella Gomez:_** **_\"_**_I wish I had learned more about hidden costs and all the unexpected expenses that come with being an adult, like living on your own. Saving for that is important!\"_ END
 TITLE: Celebrities, Recent Graduates Weigh in on Personal Finances CONTENT: The Bottom Line\n---------------\nThe common trend among celebrities—which was also apparent among recent college graduates—was the strong desire for independence and \"adult\" jobs and homes.\nAs for what they wish they knew when they left home, most celebrities answered that they wish they had more financial education of some kind, whether it was how to budget, why an emergency fund is important or how to manage multiple bills.\nRegardless of whether you're a recent graduate or far past your college days, it's never a bad time to focus on your personal finances. If you aren't sure where your finances stand and want to understand more about your debt and credit levels, consider enrolling in Experian's free credit monitoring service to see what's in your credit report, get alerts when your credit file changes and get your free credit score powered by Experian data. END
 TITLE: How to Survive Inflation CONTENT: What Is Inflation?\n------------------\nInflation is the measure of rising prices over a period of time, and economists determine inflation by comparing price indexes that group and track the cost of select items.\nOne of the most widely used measures of inflation is the Consumer Price Index (CPI), which is calculated by the U.S. Bureau of Labor Statistics and measures how the cost of a \"basket\" of consumer goods and services paid by urban consumers changes over time. The groups within the basket include food, housing, transportation, medical care and more. In just the past year, from June 2020 to June 2021, the index's rate of growth was 5.4%—helping to fuel inflation concerns in recent months.\nAs the cost of goods increases, purchasing power decreases. As an example, $1.00 in January of 2001 has the same buying power as $1.49 in January 2021—meaning that you need to spend $1.49 today to buy what a dollar could fetch two decades ago. END
 TITLE: How to Survive Inflation CONTENT: How to Survive the Effects of Inflation\n---------------------------------------\nAvoiding inflation completely is impossible, but there may be some things you can do to minimize its effect on your finances.\nFirst, it's important to differentiate between inflation that is short-lived and inflation that lasts over a longer period. Short-lived inflation can often be attributed to supply and demand issues that drive competition and temporarily raise prices. Lasting inflation is more gradual and based on a wider variety of factors.\nWhile both types of inflation are difficult to avoid, your strategies for dealing with each may differ. The main way to survive the impact of long-term inflation is to increase your income or invest in a way that helps you grow your money at a pace that exceeds the rate of inflation. Here are five ways to survive short- and long-term inflation. END
 TITLE: How to Survive Inflation CONTENT: Maintain a Diversified Portfolio of Investments\n-----------------------------------------------\nFor the everyday consumer, having investments and assets that appreciate is a great way to combat the impact of inflation. Since inflation often causes the value of money to decrease, positioning your money to grow over time means that—if your investments perform well—your dollar will ideally outpace inflation.\nIf you have an investment portfolio and\/or a 401(k), individual retirement account (IRA) or other retirement account, you'll want to make sure your investments in those accounts are diversified among stocks, bonds, index funds and other investment vehicles with varying levels of risk. Talking to an investment advisor or your company's retirement account representative can help ensure you've got a good balance of investments that will ideally outpace inflation while also mitigating your risk.\nOutside of your investment portfolio and retirement account(s), picking the right investments as a hedge against inflation will require some research. Many investors believe gold and silver are a good bet as they are known to hold their value well. Investing in real estate can also be a good strategy if you have the means, because inflation also causes property values and rents to rise—a benefit for both homeowners and landlords. END
 TITLE: How to Survive Inflation CONTENT: Build an Emergency Fund\n-----------------------\nOutside of planning for the future with investments, one of the best ways to protect your finances is to always have reserve funds for when an emergency hits. An emergency fund is a designated savings account where you store extra cash for unexpected expenses.\nWhile an emergency fund does not directly protect you from inflation, it can help you prepare for additional costs should temporary price fluctuations push you over budget. For example, if fuel costs surge due to market conditions, it could upend your monthly budget. Having an emergency fund in place could give you the breathing room you need until you have a chance to revise your budget.\nIf you have an emergency fund or are considering starting one, remember that storing your money in an account that offers some form of appreciation could help you further protect your money from devaluation. Consider opening a high-yield savings account, which allows instant access to your money while offering higher interest rates than typical savings accounts. END
 TITLE: How to Survive Inflation CONTENT: Review Your Budget\n------------------\nSince both temporary and lasting inflation will impact the cost of everyday items, it's important for you to regularly revisit your budget to ensure you're accounting for price changes over time.\nIf a large part of your budget goes toward items such as gas, utilities and food that can be impacted by temporary price increases, consider ways to save money in these areas when you hear that inflation might be driving prices higher. END
 TITLE: How to Survive Inflation CONTENT: Reconsider Large Expenses\n-------------------------\nIf you're planning any large projects or purchases, such as home renovations or buying a new car, consider how inflation may impact the costs and whether any price increases are likely to be short-term or longer-term.\nFor example, lumber prices spiked as a result of supply chain and other issues brought on by the pandemic, but prices are already beginning to drop from recent all-time highs. Recognizing that these cost increases may be temporary, you could put off replacing your wood floors, for example, until prices cool off. If you hear rumblings of inventory shortages in areas you plan to spend, either take action immediately or start setting aside extra cash to cover possible price hikes. END
 TITLE: How to Survive Inflation CONTENT: Ask for a Raise\n---------------\nAs inflation increases and the value of your dollar decreases, asking for a raise could help you keep up with the cost of living. If the cost of goods goes up over time but your pay remains the same, it may become difficult to afford your typical spending. When you increase your income, although inflation may spike the cost of everyday items, you'll know you're bringing in more money each month allowing you to cover the incremental new cost.\nThough asking for a raise is a great way to secure your personal finances, remember that many companies increase wages over time in an effort to account for changes to the cost of living. Your company may have such a policy in place, so check with your employer before asking for a wage increase to cover inflation.\nAs always, if you're keen on protecting your personal finances over time, it's important you keep up with your credit to ensure your credit health is in a good place. You can get a free copy of your credit reports and scores from Experian. END
 TITLE: How to Report a Name Change to a Credit Bureau CONTENT: How to Update Your Name on Your Credit Report\n---------------------------------------------\nWhen you want to legally change your name due to marriage, divorce, gender transition or another reason, you don't have to contact the credit bureaus to update your credit reports. Credit bureaus receive information about your accounts directly from creditors you have relationships with, including credit card companies, student loan providers and mortgage servicers among others. When your personal information that's stored with a creditor changes, the new information should eventually be reflected in your credit report.\nGender transitioning can pose additional challenges when updating records. If a person is changing their entire identity and establishing a new name, updating their Social Security information and other documents, a new credit history could be established. They would need to work with their lenders to move existing accounts and their account history to the new identity to be sure they were reported on the new credit report.\nTo ensure your name is changed on your credit report, you need to follow all the steps required in your state to formally change your name. These typically include the following:\n1.  File the appropriate name change documents with your state. The details of this process vary by state, but typically you need to receive a court order to legally change your name. You'll need to provide the courts with the reason you want to change your name, along with any additional documents your state may require. To find out more information about the process in your state, contact your local courthouse.\n2.  Update your Social Security card. The Social Security Administration will require you to provide documentation of your name change when you ask for a new Social Security card. Documents that prove a legal name change include a marriage certificate, divorce decree, certificate of naturalization or court order for a name change.\n3.  Update any other identification cards. Once your Social Security card reflects your new name, you should be able to update your other forms of identification, such as your driver's license. Government entities often require documentation of a name change, so save the documents you used to update your Social Security card as they may come in handy later on.\nOnce you've followed all the steps to legally change your name and update your identification, inform any companies you have accounts with of the change. It's a good idea to contact them all—from Amazon to your doctor's office to your bank—but any accounts that deal with finances should be of top priority.\nKeep in mind that although the steps outlined above are usually required to legally change your name, you may not have to go that far if, for instance, you just want to start using your nickname on certain documents. If you're altering your name or switching to a nickname to be used socially, you could do this informally and still maintain your legal name on important documents. END
 TITLE: How to Report a Name Change to a Credit Bureau CONTENT: Will Changing Your Name Affect Your Credit?\n-------------------------------------------\nChanging your name will not impact your credit. Your credit reports use multiple pieces of identification information, including your Social Security number, to compile your credit history. When you change your name, that new information may be added to your credit reports—but the change won't result in a new credit file being opened or previous account information being removed from the score calculations.\nYour previous name will continue to be reported with your credit history, but your new name will become the primary name on the report. Experian lists all names and name variations associated with your identifying information so that you have a complete record of what has been reported. Any nicknames or variations you have used in the past will also remain a part of your credit history (unless they are inaccurate). END
 TITLE: How to Report a Name Change to a Credit Bureau CONTENT: How to Dispute an Inaccurate Name on Your Credit Report\n-------------------------------------------------------\nWhile you can't remove accurate previous names, or name variations, from your credit reports, you can dispute inaccurate information—misspellings, for example, or incorrect names that appear in your credit file as a result of fraud.\nTo dispute a name in your report, you need to file a dispute with each credit bureau that lists the inaccurate information. Make sure to check all of your credit reports to see which reports may have the inaccurate information listed.\nIf you aren't sure what names are listed in your Experian credit report, you can easily check by getting a free copy of your credit report from Experian. Once you gain access to your report, look for the section that lists your names, and you'll see any variations or different names that have been reported as part of your credit history. END
 TITLE: Millennials Record Highest Credit Score Increase in 2020 CONTENT: Generational Credit Shows Change Since the Onset of COVID-19\n------------------------------------------------------------\nCredit is consumed differently across all generations. Younger Americans typically have lower debt balances and credit scores. Debt levels generally peak in a person's mid-50s, and then decrease as they head toward retirement. Credit scores are shown to grow throughout life, reaching a peak once consumers reach their late 70s on average.\nDue to factors such as savings and job security, each generation is positioned differently to weather an economic downturn like the one spurred by the COVID-19 pandemic. And as expected, since the beginning of the COVID-19 crisis each generation has seen nuanced changes in their credit reports.\nBetween the third quarter (Q3) of 2019 and Q3 2020, the change in credit report data showed measurable differences for all generations compared with years past. Younger generations saw the largest swings: Millennials experienced the largest growth in their average FICO® Score☉ , while Generation Z added the most to their total debt.\nLooking closer, much of this annual change occurred during the early days of the pandemic, Q1 2020 through Q3 2020, underscoring the impact the crisis has had on American finances—even if credit reports are not showing widespread negative impact for the time being.\nAs part of our ongoing review of debt and credit in the U.S., Experian compared consumer credit report data from Q3 2019 and Q3 2020 to see which generation experienced the most change since the start of the pandemic. We also compared data from Q1 2020 and Q3 2020 to understand how much of the change occurred after the beginning of the pandemic. Read on for our insights and analysis. END
 TITLE: Millennials Record Highest Credit Score Increase in 2020 CONTENT: Gen Z Increases Average Total Debt by 56%\n-----------------------------------------\nWhile younger consumers technically have the same access to credit that older generations do, they often lack the income and borrowing history needed to obtain larger loans and higher credit limits. As a result, members of Generation Z—consumers ages 18 to 23—tend to carry smaller balances across fewer accounts. During the pandemic, their total debt grew faster than any other generation.\n**_From Q3 2019 to Q3 2020_**:\n*   Generation Z's average total debt balance increased by 56%.\n*   Generation Z's average FICO® Score grew by six points.\n**_From Q1 2020 to Q3 2020_**:\n*   Generation Z's average total debt balance increased by 39%.\n*   Generation Z's average FICO® Score grew by four points.\nBy Q3 2020, Gen Zers' average total balance spiked to $16,043—a big jump from the same quarter the prior year but still just a fraction of the $140,643 average total balance held by Generation X, the most indebted generation. Though Gen Zers have a relatively small average total balance compared with other generations, they saw the largest increase in their overall debt since 2019—growing their average total balance 56% in 2020.\nAnd while the youngest generation's balance has been growing quickly—between 2018 and 2019, their total debt grew by 23%—2020's growth was more than double that, underscoring the difference of change recorded during the COVID-19 pandemic.\nSource: Experian\nZooming in, two-thirds of this dramatic increase occurred between Q1 and Q3 2020, during which time Gen Zers grew their total average debt by $4,500. Compared with other generations, Generation Z's growth in debt greatly outstripped everyone else's, including millennials'. The second-youngest generation in our analysis saw the second-highest increase in average total debt since last year, with a growth of 9% from Q3 2019 to Q3 2020.\nGeneration Z also saw high growth in their personal loan balances compared with other generations, with their average debt climbing by 26% between 2019 and 2020. On top of this change in debt balances, Gen Z consumers saw their average FICO® Score increase by six points year-over-year. END
 TITLE: Millennials Record Highest Credit Score Increase in 2020 CONTENT: Millennials See Biggest FICO® Score Increase of Any Generation\n--------------------------------------------------------------\nWhere Gen Z was the frontrunner in the debt growth category, millennials led the pack in terms of average FICO® Score growth. This generation also saw the second biggest growth in total debt, and is tied with Generation X as the age group with the largest decrease in credit card debt in 2020.\n**_From Q3 2019 to Q3 2020_**:\n*   Millennials' average total debt balance increased by 9%.\n*   Millennials' average FICO® Score grew by 11 points.\n**_From Q1 2020 to Q3 2020_**:\n*   Millennials' average total debt balance increased by 3%.\n*   Millennials' average FICO® Score grew by nine points.\nMillennial consumers—ages 24 to 39—improved their FICO® Score by 1.6%, or 11 points, between Q3 2019 and Q3 2020, according to Experian data. That's the biggest increase of any generation, and is nearly three times larger than the generation's four-point growth from 2018 to 2019.\nSource: Experian\nSimilar to Gen Z debt, millennials saw the bulk of the increase in their score occur after the onset of the pandemic, between Q1 and Q3 2020, during which time the generation's average credit score grew by nine points. Millennials joined Generation X as the only two generations that improved their scores by more than 1%.\nLooking at debt, millennials also saw the largest decrease in credit card debt, reducing their balances by 14% between 2019 and 2020. It's notable that nearly all of this decline occurred between Q1 2020 and Q3 2020, emphasizing the fact that this decrease was out of the ordinary and likely spurred at least in part by the pandemic. END
 TITLE: Millennials Record Highest Credit Score Increase in 2020 CONTENT: Gen X Sees Second-Highest Growth in FICO® Score\n-----------------------------------------------\nGeneration X—the age group with the highest amount of debt—followed millennials as the generation with the second-largest increase in their FICO® Score in 2020. These consumers—ages 40 to 55—have improved their average score by 10 points since Q3 2019, according to Experian data.\n**_From Q3 2019 to Q3 2020_**:\n*   Generation X's average total debt balance increased by 3%.\n*   Generation X's average FICO® Score grew by 10 points.\n**_From Q1 2020 to Q3 2020_**:\n*   Generation X's average total debt balance increased by 2%.\n*   Generation X's average FICO® Score grew by eight points.\nOther than FICO® Score growth, members of Generation X saw modest changes across other indicators. Compared with the changes they recorded between 2018 and 2019, the only standout area was in credit card debt. In line with the national trend, Gen X saw a 14% reduction in credit card debt since 2019. Of that, almost all of that change occurred between Q1 and Q3 2020, when their credit card balance shrank by 13%.\nSource: Experian END
 TITLE: Millennials Record Highest Credit Score Increase in 2020 CONTENT: Baby Boomers Increase Total Debt Balance, After Reducing It in 2019\n-------------------------------------------------------------------\nOf all generations, baby boomers saw the least change in their credit reports between 2019 and 2020. That said, they did buck a yearslong trend by increasing their total debt.\n**_From Q3 2019 to Q3 2020_**:\n*   Baby boomers' average total debt balance increased by 1%.\n*   Baby boomers' average FICO® Score grew by four points.\n**_From Q1 2020 to Q3 2020_**:\n*   Baby boomers' average total debt balance increased by 2%.\n*   Baby boomers' average FICO® Score grew by three points.\nFrom 2018 to 2019, baby boomers saw their total average debt decrease by 2%, according to Experian data. That was typical, as baby boomer debt has decreased each year since 2012. But in 2020—specifically between Q1 and Q3—baby boomer debt increased.\nIn line with past years, between Q3 2019 and Q1 2020, baby boomers reduced their average total debt by 1%—from $96,448 to $95,539. From Q1 2020 to Q3 2020, however, this pattern of decline reversed course and members of the generation saw their total debt balance increase to $97,290, a growth of nearly 2%.\nSource: Experian\nThis shifting pattern indicates that something during the pandemic may have caused a deviation from baby boomers' normal trajectory of reducing total debt each year. Credit report data shows that unlike between 2018 and 2019, when debt levels saw no growth year-over-year, baby boomers increased their average auto debt (+2%) and mortgage debt (+2%). END
 TITLE: Millennials Record Highest Credit Score Increase in 2020 CONTENT: Silent Generation Only One That Decreased Overall Debt\n------------------------------------------------------\nThe silent generation—the oldest age group in our analysis, consisting of Americans 75 and older—saw the least significant change of any generation since the onset of COVID-19. Given their age and pattern of shrinking debt, it comes as no surprise that the generation would appear more resistant to economic changes during the pandemic.\n**_From Q3 2019 to Q3 2020_**:\n*   The silent generation's average total debt balance decreased by 4%.\n*   The silent generation's average FICO® Score grew by two points.\n**_From Q1 2020 to Q3 2020_**:\n*   The silent generation's average total debt balance decreased by 2%.\n*   The silent generation's average FICO® Score grew by one point.\nThough members of the silent generation appear to have continued their momentum of reducing their debt over many years, nearly half of the reduction in balances seen since 2019 happened between Q1 2020 and Q3 2020, according to Experian data.\nOf the 4% reduction the generation saw in average total balance in 2020, 2% of this occurred from Q1 to Q3 2020. Compared with 2019, the silent generation also reduced debt at a higher rate. Between 2018 and 2019, these consumers reduced their average total balance by 3%.\nSource: Experian END
 TITLE: Millennials Record Highest Credit Score Increase in 2020 CONTENT: Most Change in Past Year Occurred During Pandemic Period\n--------------------------------------------------------\nAcross all generations, one thing was clear: Much of the change in debt and credit from the past year occurred once the economic changes related to the pandemic took effect. Though there has been significant change since Q3 2019, in many cases, most of the change occurred from Q1 2020 to Q3 2020.\nThis pattern shows that—while not necessarily negative (yet)—the pandemic is having financial impacts that are being seen in consumer credit reports. As this analysis shows, each generation has experienced different change, and this trend will likely continue as the pandemic continues to impact consumer finances in coming months. END
 TITLE: Mortgage Debt Sees Record Growth Despite Pandemic CONTENT: Overall Mortgage Debt Sees Highest Increase in Decade\n-----------------------------------------------------\nFrom 2019 to 2020, mortgage debt grew by 7% to reach a record high of $10.3 trillion, according to Experian data. Not only did this debt reach a record high, but it grew at the fastest rate it has in at least 10 years—underscoring how significant of a year 2020 was for home loans.\nSource: Experian\nSince the Great Recession in the late 2000s, overall mortgage debt has ebbed and flowed, with the trend of growth seen in the past seven years coming on the heels of a half-decade contraction that preceded it. In 2008, mortgage debt hit a peak at $8.7 trillion. Overall mortgage debt decreased for the five years that followed, shrinking to $7.7 trillion in 2013.\nThen, mortgage debt began a steady rebound, growing by $2.6 trillion to where it stood as of Q3 2020. For context, that growth eclipses the sum total of all student loan and credit card debt combined, and it happened in just seven years.\nDespite this bounce back in the aftermath of the Great Recession, consumers in 2020 appear well poised to manage their growing mortgage debt. Delinquency rates for mortgage holders are down (more on that later) and the average FICO® Score☉ among mortgage holders is up. These statistics, while not representative of every individual's financial situation, indicate that Americans are generally managing their mortgage debt responsibly. END
 TITLE: Mortgage Debt Sees Record Growth Despite Pandemic CONTENT: Consumers Increase Individual Mortgage Debt by 2%\n-------------------------------------------------\nIn line with the past decade of overall growth, average individual consumer balances grew in 2020, rising to $208,185, according to Experian data. Unlike the rise in overall debt, individual balances increased at a rate of 2%, which is similar to the annual growth seen over the past decade. Even with the moderate growth, individual mortgage balances are still the highest they have ever been.\nSource: Experian\nAs of 2020, approximately 44% of U.S. consumers have a mortgage. That's unchanged since 2019, according to Experian data. While the slice of the population with a home loan didn't change, average mortgage balances are up, which shows that consumers may be borrowing more than usual.\nHistorically low Federal Reserve rates helped ramp up competition in the housing market during the pandemic, and some homes have been sold above asking price as a result. In September 2020, according to data from homebuying website Zillow, 1 in 5 homes sold above their listing price. This indicates that competition and ample demand may have driven purchase prices up, and in combination with other factors, may explain why average mortgage balances are creeping up. END
 TITLE: Mortgage Debt Sees Record Growth Despite Pandemic CONTENT: Mortgage Inquiries Rise Nearly 50% at Onset of Pandemic\n-------------------------------------------------------\nA contributing factor to much of the surge in overall mortgage debt was the increased number of people applying for home loans. In early March 2020, at the onset of the pandemic, consumer inquiries for new mortgage loans spiked by 47% compared with the same period in 2019, according to Experian data.\nNearly a year into the pandemic, it's clear the financial impact was felt differently across various populations. While many consumers lost their jobs or saw their wages reduced and encountered financial hardship, others were able to keep their jobs and even found themselves spending less than before. On top of that, the Personal Saving Rate recorded by the U.S. Bureau of Economic Analysis reached record highs at the onset of the pandemic, most recently (as of December) settling at the highest level since 1975.\nIn combination with the Federal Reserve dropping interest rates in March 2020, consumers whose financial situations were secure, or even improved, during the pandemic appeared to see 2020 as an opportune time to purchase a home.\nFor almost every month in 2020, the number of hard inquiries for new mortgage loans was measurably higher than it was during the same month in the prior year. And while not all these inquiries turned into new loans, the surge in applications reveals a level of eagerness and financial ability that would not normally be expected during a financial downturn. END
 TITLE: Mortgage Debt Sees Record Growth Despite Pandemic CONTENT: Forbearances, Deferrals Double During Pandemic\n----------------------------------------------\nThough Americans have been applying for mortgages at record rates over the past year, the number of accounts placed in forbearance or deferral has also risen sharply since the onset of the pandemic. As the reality of the pandemic set in in April 2020, the number of accounts in forbearance and deferral doubled, according to Experian data.\nAt one point in April 2020, the number of accounts reported as in forbearance or deferral grew by 102%. The total balance of these accounts increased by 132% to more than $567 billion. In May 2020, both the number of accounts and the total balance recorded as in forbearance or deferral increased again. Total balances on accounts in forbearance or deferral grew by 67% (to a total of $944 billion) and the total number of accounts grew by an additional 60%, according to Experian data.\nThis sharp increase in paused mortgage repayment was likely sparked by the Coronavirus Aid Relief and Economic Security (CARES) Act, which was signed into law at the end of March 2020. The act required companies servicing government-backed mortgages to allow borrowers financially impacted by the pandemic to temporarily place their loans in forbearance.\nSo far—when measured by the health of overall consumer credit scores—these measures to avoid delinquency and allow those impacted by the pandemic to modify repayment seem to have worked. END
 TITLE: Mortgage Debt Sees Record Growth Despite Pandemic CONTENT: Consumers See Improvement in Mortgage Delinquency Rates\n-------------------------------------------------------\nAcross the various types of debt in the U.S., consumers consistently decreased their delinquency rates in 2020, and mortgage loans were no exception. Since 2019, consumers have seen significant improvement across measures of late payment severity.\nThe greatest change occurred among mortgage payments 60 to 89 days past due (DPD), with the percentage of accounts considered delinquent to that degree falling by 54%, according to Experian data.\nSource: Experian\nThis reduction in delinquency rates shows, among other things, that consumers are missing fewer payments than ever. Much of this reduction in delinquency can also likely be attributed to the protections put in place by Congress and various lenders.\nPayment history is the most important aspect of credit scores, and the decrease in delinquencies can likely be connected to overall growth of credit scores, especially the score growth seen among homeowners. END
 TITLE: Mortgage Debt Sees Record Growth Despite Pandemic CONTENT: Credit Scores Among Consumers With a Mortgage Up in 2020\n--------------------------------------------------------\nSince 2019, the credit profile of consumers with a mortgage has improved. The average FICO® Score among Americans with a home loan increased from 747 in 2019 to 753 in 2020, according to Experian data. That's 43 points higher than the national average FICO® Score, which was 710 in Q3 2020.\nThis score improvement mirrors the broader trend of the average FICO® Score increasing over time, but may also highlight the fact that mortgage lenders have continued to employ rigorous lending standards.\nSource: Experian\nThese stats also offer reassurance that the pandemic has not caused widespread trouble (so far) to homeowners' credit scores. If protections had not been put in place to help financially impacted borrowers insulate their credit to some degree, a wave of delinquencies and foreclosures could have severely impacted individual scores and finances overall.\nWhen looking at mortgage borrowers who have scores below the national norm, only around 15% of the consumers with a mortgage in 2020 were considered subprime or super subprime borrowers (those with an average FICO® Score of less than 670). These consumers had a mortgage balance of $160,913 in 2020—23% less than the national average. END
 TITLE: Mortgage Debt Sees Record Growth Despite Pandemic CONTENT: Mortgage Balances Saw Biggest Increase Among Youngest Generations\n-----------------------------------------------------------------\nIn line with patterns across other types of debt, younger generations drove a healthy portion of mortgage debt growth in 2020. Since 2019, members of Generation Z—the youngest generation in our analysis—saw their average balances spike by 19%, according to Experian data. That represents more than a $27,000 increase in mortgage debt on average in just a year.\nMillennials, who saw a fraction of the growth that Gen Z did—increasing their average mortgage balance by 6%—still had the second-highest spike of any generation. They were followed by Generation X, baby boomers and the silent generation.\nSource: Experian; Ages as of 2020 END
 TITLE: Mortgage Debt Sees Record Growth Despite Pandemic CONTENT: Consumers in Nearly All States Saw Mortgage Debt Increase\n---------------------------------------------------------\nAcross the country, individual mortgage balances increased in all but one state between 2019 and 2020. Only in Connecticut did consumer balances shrink—and just barely at that. The average mortgage debt in that state decreased by 0.3% in 2020.\nOverall, 36 states and the District of Columbia saw their mortgage debt increase at a rate of over 2% (the national average) in 2020. Consumers in Idaho saw the largest annual increase, at 8.3%, and the smallest growth was 0.4% in Illinois.\nBorrowers in the District of Columbia had the highest mortgage debt of any state, carrying an average of $437,976—an increase of nearly 4% since 2019. California had the second-highest average, with consumers owing $371,981 in mortgage debt in 2020—over $8,000 or 2.2% more than the previous year. The nation's capital and California were followed by Hawaii, Washington and Colorado as having the highest average mortgage debt.\nSource: Experian data END
 TITLE: Mortgage Debt Sees Record Growth Despite Pandemic CONTENT: How Did the COVID-19 Pandemic Impact Mortgages in 2020?\n-------------------------------------------------------\nIt's difficult to illustrate the pandemic's full impact on home borrowing in 2020, but there are a few trends that can be attributed to the pandemic with a high degree of confidence.\nFirst, the spike in mortgage forbearance and deferral clearly shows that mortgage lenders and consumers were quick to adopt Congress' emergency protections that allowed some to delay repayment. These protections were meant to help consumers struggling financially, and with the average FICO® Score of mortgage borrowers growing, this plan appears to have been successful thus far.\nSecond, the Fed's reduction in interest rates appears to have helped stimulate borrowing, as the number of hard inquiries for first mortgages showed a sharp increase the month the Fed announced changes to their benchmark rate compared with the same month the prior year. END
 TITLE: Bitcoin vs. Ethereum: What’s the Difference? CONTENT: Bitcoin was the first cryptocurrency ever invented, while Ether is a digital currency built on the Ethereum blockchain platform.\nIn addition to their name recognition and status as the two most popular digital currencies in the world, Bitcoin and Ether are the largest cryptocurrencies by market capitalization, meaning their total outstanding value for all currency in circulation is larger than all other digital currencies.\nThough Bitcoin and Ether are both decentralized digital currencies that use blockchain technology, Ether is built on the Ethereum platform and Ether transactions are processed differently from Bitcoin transactions. END
 TITLE: Bitcoin vs. Ethereum: What’s the Difference? CONTENT: How Does Bitcoin Work?\n----------------------\nDeveloped in 2009, Bitcoin uses blockchain technology to facilitate anonymous transfers of Bitcoin from person to person.\nBlockchain technology works by grouping together information (known as \"blocks\"), then adding these blocks to a public ledger, known as the blockchain. Since the blockchain is decentralized, these transactions are processed by computers all around the world and a record of all transfers can be reviewed by anyone.\nThough this may seem complicated, the blockchain can be understood simply if compared to a database or ledger (like the one that tracks your bank account). Once a transaction is recorded on the blockchain, the information is permanently stored, cannot be deleted and is viewable by anyone—putting control in the hands of the network, and not a centralized power like a bank or government. END
 TITLE: Bitcoin vs. Ethereum: What’s the Difference? CONTENT: How Does Ether Work?\n--------------------\nIn order to understand how Ether works, it's critical to understand the platform on which it's built: Ethereum. Ethereum is a decentralized software platform that uses blockchain technology like Bitcoin does—but with expanded capabilities.\nThe Ethereum platform uses blockchain technology to support multiple utilities, like the development of applications and programs, as well as powering cryptocurrencies including Ether. The platform does this through what are called \"smart contracts,\" which are essentially programs that can be stored and run on the Ethereum platform.\nWhile the name Ethereum is sometimes mistakenly or casually used to describe the cryptocurrency itself, Ether is the native and primary cryptocurrency built on the Ethereum platform. Ether is also the currency that fuels aspects of the platform. When transactions occur, the \"miners\" who run the computer programs around the world that power the network, are paid in Ether. END
 TITLE: Bitcoin vs. Ethereum: What’s the Difference? CONTENT: Should I Buy Cryptocurrency?\n----------------------------\nThe volatile nature of cryptocurrency value means some investors have made massive amounts of money buying, selling and trading it. But a lot of money has been lost in the pursuit of cryptocurrency riches too. Like any investment, you should only buy cryptocurrency if you've fully researched it and understand the risks involved. Cryptocurrency markets are very different from conventional securities markets, like the New York Stock Exchange. Similarly, payments with cryptocurrencies do not offer the same protections as those with a debit or credit card, making it difficult to get recourse should you encounter fraud.\nSince cryptocurrency markets are minimally regulated and not formally backed by any governments, opinions are mixed on whether they are reliable alternatives to conventional investments or cash. Though agencies like the Federal Trade Commission are aware of cryptocurrencies like Bitcoin and Ether, they advise consumers to learn the differences between digital and fiat currencies (government-issued paper money) and keep this in mind as they decide whether to purchase cryptocurrencies. END
 TITLE: Bitcoin vs. Ethereum: What’s the Difference? CONTENT: How to Buy Bitcoin and Ether\n----------------------------\nThere are several ways to purchase Bitcoin and Ether, and the method you choose will depend on what you want to do with your digital currency. Currently, there are two main reasons to own cryptocurrency.\nFirst, you may want to purchase and own crypto as an investment vehicle. Cryptocurrency prices are always changing, and many are rushing to purchase digital currencies to profit from the price growth over time (though there is no guarantee their value will rise). The other reason one may purchase digital currencies is to use them to make purchases in everyday life. Cryptocurrencies still haven't been widely adopted as a payment method, but many businesses have begun accepting certain digital currencies in addition to fiat currency as a form of payment.\nPrimarily, digital currencies are purchased via online exchange platforms, and the currencies are then stored in a digital wallet. The purchase transaction record is stored on the blockchain, but your digital wallets store your public and private keys, which are used to buy and sell digital currencies.\nSome of the popular online exchanges are Binance, Coinbase, Gemini and Kraken, through which you can use your bank account, debit card or (in certain instances) a credit card to purchase cryptocurrency. Once your cryptocurrency has been deposited into your digital wallet, you will then be able to use your public and private keys to transfer it and even make purchases from businesses that accept crypto as a form of payment.\nSome mainstream investment brokerages and online applications also allow users to purchase crypto through their platforms. Companies like Robinhood, CashApp, PayPal, Venmo and SoFi all allow limited buying and selling of certain digital currencies—mainly Bitcoin and Ether, along with some other alternative coins.\nHowever, one caveat to buying crypto through these mainstream investment apps is that since you're using an intermediary, you typically won't have access to a public and private key and won't be able to use the currency for purchases. This option is more for someone looking to invest in a digital currency for appreciation purposes, rather than for using the digital currency as a form of tangible payment. END
 TITLE: Bitcoin vs. Ethereum: What’s the Difference? CONTENT: Will Buying Cryptocurrency Impact Your Credit?\n----------------------------------------------\nBuying and selling cryptocurrency has no impact on your credit. Credit reports store information that primarily has to do with your history of borrowing and repaying debt, and information about your investments is never stored in your credit file.\nThough buying digital currencies won't directly impact your credit, it's always wise to fully consider your personal financial situation before investing or converting cash into something that could lose value.\nAlways be sure to have a robust emergency fund you could tap into if you were to come on hard times and need extra cash to cover essentials or bills. Putting all your money into crypto can also increase the risk that you'll miss payments, or pay late, which can impact your credit. To better protect yourself from credit score harm, make sure you always have enough cash on hand to fully cover your obligations every month.\nIf you want to check to see what's in your credit history, free credit reports from all three major consumer bureaus (Experian, TransUnion and Equifax) can be had through AnnualCreditReport.com. You can also get a free copy of your Experian credit report and FICO® Scores☉ from Experian. END
 TITLE: How Many People Have Credit Card Debt? CONTENT: Average American Credit Card Debt by Generation\n-----------------------------------------------\nThough members of all generations carry credit card debt, some have more than others. Like other debts, credit card balances tend to increase as people grow older—peaking around the early 50s before tapering off as a person ages.\nFollowing that pattern, members of Generation X—which includes people ages 40 to 55—have the highest debt of any generation, carrying an average credit card balance of $7,155, according to Experian data from Q3 2020.\nGeneration Z adults—the youngest age group in our analysis, consisting of people ages 18 to 23—have the lowest debt, with an average credit card balance of $1,963. Their average balance has seen the smallest decrease since last year, dropping just 6%.\n*   **Generation Z (18-23)**: $1,963 (down 6% from 2019)\n*   **Millennials (24-39)**: $4,322 (down 11% from 2019)\n*   **Generation X (40-55)**: $7,155 (down 12% from 2019)\n*   **Baby Boomers (56-74)**: $6,043 (down 12% from 2019)\n*   **Silent Generation (75+)**: $3,77 (down 16% from 2019)\nOverall, members of the older generations reduced their debt more than younger Americans. The silent generation—the oldest generation in our analysis—saw a 16% drop since 2019. END
 TITLE: How Many People Have Credit Card Debt? CONTENT: Top 10 States With the Most Credit Card Debt\n--------------------------------------------\nCredit card balances vary around the country, and consumers in 35 states carry an average balance that is less than the national average of $5,315. In the remaining 16 states—including the 10 listed below—consumers owe more than the national average.\nAlaskan consumers owed the most in 2020, carrying an average credit card balance of $6,617, according to Experian. Their balance is $1,302 less than the national average. On the opposite end of the spectrum, consumers in Iowa carried the lowest average credit card debt of $4,289—$1,026 less than the national norm.\nHere is an overview of the top 10 states (including Washington, D.C.) where consumers carried the highest credit card debt as of Q3 2020:\n*   **Alaska**: $6,617\n*   **Connecticut**: $6,040\n*   **Virginia**: $5,992\n*   **New Jersey**: $5,978\n*   **Maryland**: $5,977\n*   **Texas**: $5,848\n*   **Georgia**: $5,693\n*   **District of Columbia**: $5,671\n*   **Florida**: $5,623\n*   **Hawaii**: $5,614 END
 TITLE: How Many People Have Credit Card Debt? CONTENT: Tips for Getting Rid of Credit Card Debt\n----------------------------------------\nRegardless of whether you carry more or less credit card debt than the national average, there are plenty of ways to gain control over what you owe. Paying down credit card debt is not only a smart financial decision, but it could have a big positive impact on your credit score.\nTo get started, consider these strategies for reducing credit card balances:\n1.  Figure out how much you owe. Knowing what you owe across all your credit card accounts is the first step to tackling your debt. Tally all your outstanding balances and add them together. Having this figure will allow you to plan accordingly. To get an overall look at your credit situation, you might consider reviewing your credit reports, which you can get for free from all three consumer credit bureaus through AnnualCreditReport.com.\n2.  Make a repayment plan. Once you know what you owe, figure out how much you can afford to put toward your debt each month. If possible, find ways to put aside extra money each month so you can put it toward your debt as you work to repay what you owe. Before you start paying it back, find out which cards have the highest interest rates and put your efforts into paying that account off. Remember, the higher the interest, the more you'll pay to borrow—so eliminating high-interest balances first could help you save in the long run.\n3.  Consider alternatives. Depending on what you owe and how much you can afford to pay each month, you may want to consider a repayment alternative. Consolidating your debt with a personal loan is an example of an alternative that could save you some money on interest over time. You could also consider transferring your balance to a card with an introductory 0% interest rate that will eliminate your interest payment and give you some extra wiggle room as you pay back the debt.\nTo get an idea of how much you owe, consider getting a free copy of your credit reports and scores from Experian to see which creditors you have a balance with. This will help you get an initial idea of what's outstanding, and will help you stay organized while you work to repay your debts. END
 TITLE: How to Avoid Overspending on Amazon Prime Day 2021 CONTENT: Review Your Budget and Stick to It\n----------------------------------\nThe best way to avoid overspending is having a budget and sticking to it. Without a budget, you'll have no guardrails helping you determine how much you can afford to spend and may lose control when faced with fleeting deals on hot products.\nIf you have an existing budget, review it to see what wiggle room there is for discretionary retail spending. Looking for household products? You may be able to slot your Amazon Prime Day spending into that budget category. If you're looking for a bigger-ticket item, see how it fits in—if at all—with your allotted monthly spending money. Once you add up how much you can spend comfortably without sidetracking your budget, make that amount your spending limit for Amazon Prime Day purchases.\nIf you're already setting aside savings for holiday purchases, this could be a great opportunity to get a head start. Amazon Prime Day happens only once a year, and it could be the one day you get the majority of your holiday gift shopping done. Just be sure to read return policies to know whether your purchases will extend past return periods if you're hoping to use them for holidays late in the year. If you opt to dip into your savings, make a plan to replenish what you took—and be sure to follow through. While using your holiday savings can be a great money-saving strategy, using the money in your emergency fund to make Amazon Prime Day purchases isn't a good idea.\nIf you don't have a budget and aren't sure what you can afford to spend on Prime Day, take a look at your expenses for the rest of the month and see how much you'll have leftover. Then commit to creating a budget as soon as you can. It's not hard: Your budget essentially takes your monthly income, and subtracts your set monthly expenses. The remaining cash is then allotted for saving, discretionary spending and paying down debt. A couple budgeting methods to explore include the 50\/30\/20 budget and the zero-based budgeting method. END
 TITLE: How to Avoid Overspending on Amazon Prime Day 2021 CONTENT: Check to See if the Item Is a Good Deal\n---------------------------------------\nJust because something is on sale on Amazon, that doesn't mean that's the lowest price available. Amazon offers thousands of different products from retailers all around the world, and while the site is commonly known to have some of the lowest prices, some items may actually be cheaper elsewhere.\nWhen shopping on Amazon Prime Day, always leave yourself time to cross-check other retailers online to ensure you're getting the best deal possible. Price comparison sites like CamelCamelCamel can even show you price fluctuations over time. END
 TITLE: How to Avoid Overspending on Amazon Prime Day 2021 CONTENT: Offset Your Costs by Paying With a Rewards Credit Card\n------------------------------------------------------\nIf you have a rewards credit card, consider using it this Prime Day to offset your purchases by earning points, miles or cash back. Depending on what card you have, and what rewards program it manages (for example, Chase Ultimate Rewards), you'll have different options for how you can earn or redeem your points or cash back.\nIf you're looking to pay as little as possible for your Prime Day purchases, a card with generous cash back could be a good option.\nIf you're hoping to avoid paying interest on any big-ticket items you may buy, a card with a 0% introductory APR on purchases could save you a lot of money. Just be sure to pay off your purchases before the introductory period ends to avoid paying any interest on your Prime Day products.\nTrying to earn points for an upcoming vacation? If you have a card that offers generous point or mile earnings, that could be your best bet for Prime Day shopping. While you'll want to pay off your purchases as quickly as possible to make sure you get your full rewards earnings, committing to charging and then paying off those purchases right away could help you squeeze extra value from your upcoming trip.\nTo learn more about reward credit cards you may be eligible for, consider using Experian CreditMatch™ to get paired with personalized credit card offers based on your credit profile. END
 TITLE: Average Age to Buy a House CONTENT: Homebuying Trends in the United States\n--------------------------------------\nIn the U.S., there is over $10.3 trillion in outstanding mortgage debt held by a total of 56 million consumers as of the third quarter (Q3) of 2020, according to Experian data.\nAt the individual level, Americans had an average mortgage balance of $208,185 in Q3 2020. That amount is up $3,870 from the same period in 2019.\nBy generation, the highest average mortgage debt balance is held by members of Generation X, which includes people between the ages 40 and 55. In Q3 2020, members of the generation owed $247,564—nearly $40,000 higher than the national average. The silent generation, the oldest generation in our analysis, had the lowest average mortgage balance, owing only $133,827 in Q3 2020.\nSource: Experian END
 TITLE: Average Age to Buy a House CONTENT: When Is the Best Time to Buy a Home?\n------------------------------------\nBecause buying a home might be your largest financial commitment, it's important to be as prepared as possible ahead of purchasing your first home, even if that means waiting a little longer.\nIf you're thinking about buying a home, here are a few things to consider:\n*   Do you need a new home quickly for any reason?\n*   Do you have enough savings to make a sizable down payment?\n*   Are you confident you'll get approved for financing?\n*   Are there economic factors that might help me get a good deal?\nWhile there's no real estate equivalent to Black Friday retail discounts, new home listings tend to increase between April and June, according to Zillow. That means if you want a large inventory of homes to choose from, spring or summer might be the best time to buy. You will, however, have a lot of other homebuyers to compete with, so alternatively, looking for homes in the winter might give you a competitive edge with the homes that are available then.\nOf course, if you have an immediate need to move—if a baby's on the way or you are relocating for a new job, for instance—you won't have the luxury of waiting for the best time of year. Regardless of when you start looking for a home, always be sure to have your finances in order so you can use your time wisely and only look at properties you can afford.\nUltimately, the best time of year to buy a home is when you are financially and emotionally ready to move forward with this major life milestone. END
 TITLE: Average Age to Buy a House CONTENT: Loans, Programs and Grants for First-Time Homebuyers\n----------------------------------------------------\nBefore you get serious about the homebuying process, make sure you know the financing options that are available. Many first-time homebuyers are eligible for special programs that make the process of getting your first mortgage cheaper and easier.\nWhen thinking about how you plan to finance your home purchase, consider the following:\n*   What type of loan should I get?\n*   Are there homebuyer programs in my areas?\n*   Do I qualify for any grants?\nTo make homebuying more accessible, federal and local governments have created programs to assist first-time homebuyers. These programs provide down payment assistance as well as specialized programs that reduce the overall burden of buying your first home.\n*   **Neighbor Next Door**: This program is offered through the U.S. Department of Housing and Urban Development (HUD) and is geared toward public service workers, including teachers, law enforcement officers and firefighters. Through this program, HUD will give certain public service workers 50% off of homes that are listed for sale in their database.\n*   **Government-insured loans**: Mortgages insured by the Federal Housing Administration (FHA) are great for first-time homebuyers as the credit requirements are low and down payments can be as little as 3.5% of the home's purchase price. In addition to the FHA, the Department of Veterans Affairs (VA) offers specialized programs that can help certain purchasers buy homes with no down payment.\n*   **Down payment grants**: Sometimes the biggest hurdle in purchasing your first home is coming up with the cash for a down payment and closing costs. Depending on your home's purchase price, paying 10% to 20% upfront might not be an option. To help with this, local governments, lenders and other groups have specialized programs that lower the down payment costs associated with some home purchases. To find more information about the thousands of assistance programs that exist in the U.S. check out the Down Payment Resource.\nThese are just a few of the many programs that exist to help first-time homebuyers. To take advantage of these options, speak with your real estate agent, lender and local government officials to see if there are any specialized plans you qualify for. END
 TITLE: Average Age to Buy a House CONTENT: How to Get Your Credit Ready for a Mortgage\n-------------------------------------------\nAnother thing to consider before you start home shopping is your credit. Having good credit is important in the homebuying process, since any red flags in your credit history could cause your mortgage application to be denied, or result in paying a higher interest rate on your loan. If you worry your credit situation will limit your homebuying possibilities, take time to improve your score before applying for a mortgage. Remember, a mortgage is one of the largest loans a person can take out, so the bank will scrutinize your credit and income closely to evaluate how qualified you are to take on that type of debt.\nThere is no universal credit score minimum that mortgage lenders require. Rather, the score you need will depend on your lender and the type of loan you apply for. For example, a conventional loan—one that is not insured by the government—may have a minimum score requirement ranging from 620 to 660, depending on the lender. Some mortgages, such as those backed by the FHA, may only require a score of 500 if you're able to put at least 10% down on the purchase.\nOn top of using your credit score to approve you for the loan, lenders will also use your score to determine your interest rate. Typically, consumers with higher scores can lock in lower interest rates and save thousands of dollars over the life of their loan.\nIf you're considering buying a home and think you may need to first work on your credit, check out these tips for improving your scores:\n*   **Check your credit reports and scores.** The first step to figuring out how you can improve your credit is by looking through your reports to identify potential areas of improvement. You can get your credit reports for free from all three major credit bureaus (Experian, TransUnion and Equifax) at AnnualCreditReport.com. Look for any inaccurate information and report it to the appropriate credit bureaus. Removing false information can take time, so this is a process you want to kickstart a few months before you need to apply for credit.\n*   **Stop applying for new credit.** As you shop for a new home, limit the number of credit applications you submit. When you apply for new credit—regardless of whether it results in a new account or not—your credit could be impacted. A last-minute change to your credit could disrupt the mortgage underwriting process, so it's advised not to make any changes to your credit until the purchase of your new home is complete.\n*   **Reduce credit card debt.** Reducing credit card debt will help you decrease your credit utilization ratio. Your credit utilization ratio counts for 30% of your credit score, and improving this aspect of your credit could help you quickly improve your score.\n*   **Continue to make on-time payments.** Payment history is the most important aspect of your credit, and even one late or missed payment could have a negative impact on your scores. To maintain the best scores, be vigilant to make sure you do not miss payments or pay any bills late. A newly recorded delinquency in your credit report could be a red flag for a lender and could cause them to reconsider the terms of your mortgage.\nAs you work to improve your scores, consider using Experian's free credit monitoring service to track your progress. As your credit changes, you'll be notified and will see how certain things impact your score. You'll also be able to detect fraud sooner as it will alert you when changes occur in your credit reports. END
 TITLE: Credit Card Debt in 2020: Balances Drop for the First Time in Eight Years CONTENT: Credit Card Debt Saw Unprecedented Drop in 2020\n-----------------------------------------------\nSince 2019, outstanding credit card debt has dropped by 9%, bringing the total for Q3 2020 to $756 billion, according to Experian data. This drop represents over $73 billion in balances that consumers have paid down in the past year—despite a recession.\nSource: Experian\nAside from the fact this occurred during an economic recession, the decrease is notable because it marks the first drop in any type of debt since 2013. Until 2020, all debts—including mortgage, auto, personal loan, student loan and credit card—had been increasing year over year since 2014.\nThe expectation that consumers would rely more heavily on revolving debt during an economic crisis is not far-fetched. But reality shows that three-quarters of the way through 2020, U.S. credit card debt is at the lowest it's been for quite some time.\nIt's likely at least part of this drop in credit card debt can be attributed to consumers' access to cash and debt relief help from federal economic stimulus measures enacted by the Coronavirus Aid, Relief and Economic Security (CARES) Act. Provisions in the CARES Act, such as the suspension of student loan payments and a one-time stimulus check of up to $1,200, may have given consumers the wiggle room necessary to pay down their balances.\nWhile balances may have dropped, the number of consumer credit card accounts has grown over the past year. Consumers in the U.S. opened 12 million new credit card accounts since 2019, according to Experian data. And while this is less than the 21 million accounts added in 2019, it's still significant given larger economic conditions.\nUnlike in past years where balances grew in tandem with new accounts, 2020 is the first of at least 14 years (the oldest point in history included in this analysis) where consumers added new accounts but decreased their overall debt burden.\nThe past trend showed that new accounts typically brought increased debt. But in the case of 2020, the new accounts are either not being used to rack up high new balances, or consumers are aggressively paying down their debt enough to offset the balances being added to newly opened accounts.\nSource: Experian END
 TITLE: Credit Card Debt in 2020: Balances Drop for the First Time in Eight Years CONTENT: Credit Card Balances Down by an Average 14%\n-------------------------------------------\nIndividuals in the U.S. have seen their average credit card balance decrease by $879 since 2019, according to Experian data. That represents a 14% drop and marks the first time since 2011 that average individual credit card debt shrank compared with the previous year.\nWith the onset of the COVID-19 pandemic, mandatory lockdowns and business closures have stunted consumer spending—which, along with other factors (such as the economic stimulus measures noted above), may have contributed to the decrease in credit card balances. Consumer expenditure, as measured by the U.S. Bureau of Economic Analysis, took a dive beginning in March, dropping to the lowest point in five years in April.\nSource: Experian END
 TITLE: Credit Card Debt in 2020: Balances Drop for the First Time in Eight Years CONTENT: States With Highest Balances Saw Greatest Decrease\n--------------------------------------------------\nAcross the country, consumers in all states saw average credit card balances decrease in 2020. In most states, consumer balances shrank at around the national average rate of 14%, but some stood out as having either a larger or smaller decrease.\nConsumers in Washington, D.C., saw the largest average balance decrease, with credit card debt shrinking by 20% in the past year—6 percentage points more than the national average. The residents of the nation's capital saw their average balances drop over $1,400, from $7,077 in 2019 to $5,671 in Q3 2020.\nOn the other end of the spectrum, consumers in North Dakota saw their credit card balances shrink the least, dropping 8%. Their average balance started at $5,265 in 2019 and fell to $4,865 in Q3 2020.\nSource: Experian END
 TITLE: Credit Card Debt in 2020: Balances Drop for the First Time in Eight Years CONTENT: Credit Card Utilization at Lowest Level in Over a Decade\n--------------------------------------------------------\nDriven by shrinking balances, consumers' average credit utilization ratio dropped to 25%—the lowest it's been in at least 10 years. Since 2019, the average credit utilization ratio for credit cards dropped by 4 percentage points from 29% to 25%, according to Experian data.\nCredit utilization is the second most important factor in credit score calculations and is a measure of how much available credit a consumer is using on their credit card accounts at a given time. Those who can reduce their utilization could see higher credit scores—and thus typically better rates and terms when applying for credit.\nSource: Experian\nGiven that average credit limits shrank for many consumers this year, the fact that credit utilization is at a record low speaks to the transformative impact of paying down debt. Along with the decrease in credit utilization, the average U.S. consumer credit score also rose to a record high of 710 in Q3 2020. That's an increase of seven points since 2019.\nWhile credit utilization is not the sole driver of the national average credit score change, it plays a large role. The connection between the two can be seen when looking at the scores of consumers in top credit ranges.\nSource: Experian data from Q3 2020 END
 TITLE: Credit Card Debt in 2020: Balances Drop for the First Time in Eight Years CONTENT: All Generations Reduce Balances\n-------------------------------\nThough members of all generations have credit cards, each age group uses them differently. Members of younger generations (such as millennials and Generation Z) typically carry lower balances and have lower credit limits—and as a result, utilize more of their available balance. Older generations (such as the silent generation and baby boomers) are the opposite, carrying higher balances on cards with high credit limits—and have lower utilization.\nMembers of older generations decreased their debt at a higher rate than younger Americans in 2020. The silent generation, which includes Americans age 75 years and older, saw their average credit card debt decrease the most, shrinking 16% in 2020, according to Experian data. On the opposite end of the spectrum, Gen Z adults—Americans ages 18 to 23—only saw a 6% decrease during the same period.\nSource: Experian\nThough members of older generations cut a larger share of their credit card debt in 2020, the younger generations had greater reduction in credit utilization by paying down their balances. Members of Generation Z dropped their average utilization rate by 4.7 percentage points—three times as much as members of the silent generation. While older Americans have lower utilization overall, they also have much higher credit limits.\nSource: Experian\nYounger generations also differed from their older counterparts in how their average credit limit changed over the past year. In 2020, millennials and members of Gen Z saw their average credit limit grow by 2% and 10%, respectively. The silent generation, baby boomers and members of Generation X all saw their average credit limits decrease in the past year.\nSource: Experian END
 TITLE: Credit Card Debt in 2020: Balances Drop for the First Time in Eight Years CONTENT: Despite Recession, Credit Card Delinquencies Decreased\n------------------------------------------------------\nAs consumers actively paid down their credit card debt, late and missed payments for credit card accounts dropped in 2020, according to Experian data. Since 2019, the percentage of delinquent accounts—across 30-, 60- and 90-days-past-due periods—have all decreased.\nThe drop in credit card delinquency rates put a stop to five years of consecutive growth for late and missed payments. Before 2020, the last year to see any negative growth in delinquencies was 2014, which was the last in a five-year period of negative year-over-year decline in delinquencies as consumers emerged from the Great Recession.\nThe percentage of accounts that were 30 to 59 days past due (DPD) saw the most improvement, decreasing by 33% in 2020. Accounts 60 to 79 days past due followed, shrinking by nearly one-third since last year.\nSource: Experian END
 TITLE: Holiday Spending Looks Different for Consumers in 2020 CONTENT: Consumers in 2020 Tend to Use Credit Cards, Not Cash\n----------------------------------------------------\nWith more than 1 in 3 consumers stressed about staying within budget, many are open to using credit cards over cash this year. Over half of those surveyed—57%—said they tend to use credit cards instead of cash when holiday spending. That's an increase of 8 percentage points from the same time last year.\nAs part of their planning, 55% of consumers say they will put money aside for gifts as they approach the holidays. That figure is down from 65% who said the same in 2019.\nAnother 43% of Americans plan to tighten their budget ahead of the holidays. That's another reduction compared with last year, when 52% of consumers planned to clamp down their budget ahead of holiday shopping.\nThese changes may point to the fact that some consumers have had their incomes slashed due to the pandemic, or have already made cutbacks to the point that more may be impractical. END
 TITLE: Holiday Spending Looks Different for Consumers in 2020 CONTENT: 1 in 4 Plan to Apply for New Credit Ahead of the Holidays\n---------------------------------------------------------\nIn addition to more consumers saying they'll use credit cards over cash for holiday purchasing, some 28% of those asked say they plan to open a new credit card ahead of the holidays. Of that group, 45% say they are facing credit or financial barriers due to COVID-19.\nAmong the others planning to open a new credit card this holiday season, some were looking to take advantage of introductory 0% annual percentage rate (APR) credit card offers or travel reward earnings possibilities. A total of 32% said they wanted to apply for a 0% intro APR card, while 31% wanted to open a card for the travel rewards. END
 TITLE: Holiday Spending Looks Different for Consumers in 2020 CONTENT: Consumers Feel Less Holiday Shopping Stress This Year\n-----------------------------------------------------\nThough the pandemic may pose financial strain for many consumers, the winter months are a time when many celebrate what they are thankful for. Given the turbulence of the past year, and the toll physical separation has taken, the general sentiment around the upcoming shopping season appears to be less negative.\nWhen asked to choose any emotions they've been feeling, fewer said they felt stressed, overwhelmed, panicked and anxious compared with last year's survey. The largest reduction (13 percentage points) occurred among consumers who said they felt stressed when thinking about holiday shopping.\nAccording to the Experian survey, a larger proportion also said they are feeling more grateful in 2020. Compared with 2019—when 27% of Americans said they felt grateful when thinking about holiday shopping—30% report feeling this way in 2020. END
 TITLE: Holiday Spending Looks Different for Consumers in 2020 CONTENT: One-Third of Americans Stressed About Staying Within Their Budget\n-----------------------------------------------------------------\nDespite changes in sentiment, the larger economic strain hasn't escaped consumers gearing up for holiday spending. Over half of Americans—52%—said that COVID-19 has caused credit or financial barriers that have prevented them from doing holiday shopping the way they planned, according to Experian's survey.\nWhen asked to describe what makes holiday shopping stressful, respondents mostly replied with financial concerns. Over one-third—35%—said it's hard to stay within their budget while holiday shopping. Another 28% said they didn't want to add to their existing debt. More than a quarter—27%—said they didn't have the extra money to buy gifts, and 12% said they couldn't access credit in order to purchase presents. The remaining respondents cited other reasons. END
 TITLE: Holiday Spending Looks Different for Consumers in 2020 CONTENT: Consider Checking Credit Scores Ahead of Credit Applications\n------------------------------------------------------------\nFor anyone contemplating applying for new credit ahead of the holidays, there are a few important things to consider. First, try to get a card that offers some sort of benefit—like 0% intro APR on new purchases or an introductory bonus offer after meeting a minimum spend. These offers can be extremely valuable and can help you save money on your holiday shopping.\nSecond, make sure your credit is in good shape before applying for your new card. Consider getting a free copy of your credit reports and scores from Experian prior to sending in any new applications. Knowing where your credit stands will give you an idea of what cards you might be approved for.\nTo get credit card offers you are likely to be approved for, check out Experian CreditMatch™, which uses your FICO® Score☉ to pair you with the offers. END
 TITLE: How to Get a Car Loan With Bad Credit CONTENT: Steps to Take Before You Apply for a Car Loan With Bad Credit\n-------------------------------------------------------------\nCredit scores are one of the factors lenders consider when deciding whether to approve a person for a car loan. A score is considered fair or poor if it falls below 670 on the FICO® Score☉ range, which goes from 300 to 850.\nYou may not be eligible for all loans with a score like this—and you might pay more for the loans you are able to get—but with proper planning and research, you should be able to find a loan that works for you. Here are five things you can do to improve your chance of getting approved, and reduce how much you'll pay to borrow: END
 TITLE: How to Get a Car Loan With Bad Credit CONTENT: Where Can I Get a Car Loan With Bad Credit?\n-------------------------------------------\nBefore you apply for a car loan, it's important to become familiar with the various borrowing options you may have. Some lenders offer loans to those with poor credit, but others may not. Knowing how each lender works beforehand could save you time and energy in the application process. Here are the most common types of auto financing:\n*   **Captive financing**: This type of financing is organized directly through the manufacturer and kept in-house. That means not only are you buying a car from a dealership, but you also finance the loan directly through them. This type of financing is not always an option with used vehicles. These loans may also be easier to get for someone with less-than-perfect credit, as captive lenders can be forgiving and have an incentive to issue you a loan to buy their car.\n*   **Dealer-arranged financing**: In this situation, the dealer works with different lenders to find and obtain a loan for your vehicle. Once you apply, you may get several loan options from which you can pick the one with the best terms. This option could be good for someone with fair credit, as your information will be shared with several lenders at once—including at least a few that should consider applicants with imperfect histories.\n*   **Bank or credit union**: Banks and credit unions may have options for financing an auto purchase. Similar to any other loan, you would simply apply with a banker and receive a preapproval that you then take to the dealership. This loan is paid back directly to your bank or credit union back on a monthly basis. This could be a good option for people who already have an established relationship with a bank or credit union, as they may overlook blemishes in your credit history and use your experience with their institution as evidence of your creditworthiness. If you can't go into a branch, you can also apply for many bank loans online by visiting bank websites and looking for auto loans.\n*   **Online lenders**: Nowadays, online banks and fintech (financial technology) companies also offer auto loans. The process when applying for these loans typically takes place all online, and interest rates can vary widely depending on the lender. To find one of these offers, you can search generally online for auto loans, looking specifically for companies that exist completely online. You can also use a single aggregation website that allows you to use one application to receive several loan offers. Just be wary of unfamiliar companies and do your research to determine whether a lender you're considering is reputable and offering a fair deal.\n*   **\"Buy here, pay here\"**: These dealers specialize in working with people that have no credit or poor credit. Instead of sending your loan to an outside lender, they finance the purchase of the vehicles on their lot themselves. There are many downsides to this type of financing, however, including high interest rates, high down payment requirements and a potentially limited vehicle selection. END
 TITLE: How to Get a Car Loan With Bad Credit CONTENT: Additional Tips for Getting a Car Loan With Bad Credit\n------------------------------------------------------\nIf you need a car immediately and don't have time to improve your credit scores before applying for an auto loan, here are some alternatives that might help.\n1.  Get a cosigner. A cosigner is a person that agrees to apply for a loan with you, and is equally responsible for making loan payments. Cosigners typically have established good credit and give the lender peace of mind in situations where the primary applicant has less-than-perfect credit history. If you end up missing payments or defaulting, there will likely be credit consequences for both you and your cosigner.\n2.  Increase your down payment. The bigger your down payment, the more likely it is you'll get approved for a car loan. Down payments not only reduce the amount you have to borrow, but having some skin in the game shows lenders that you're serious about paying off your loan.\n3.  Choose a cheaper car. If you can't get approved for a loan, finding a less expensive car will reduce the amount you need to borrow. Even if your credit isn't good enough to land you a large auto loan, a lender may approve your application for a smaller one.\n4.  Look into second-chance car loans. These types of loans do exactly what they say and are meant to give people with bad credit a second chance. If you have been turned down for a conventional car loan, a second-chance lender will try to provide you with finance options you're practically guaranteed to get approved for. When choosing a second-chance car loan, be careful to pick a lender that's reputable and has a track record of positive customer experiences. These loans may be available through some credit unions and even large companies like Carvana have financing options specially designed for people with poor credit. These loans will almost certainly carry high interest rates and fees, though, so consider your options carefully. END
 TITLE: How to Get a Car Loan With Bad Credit CONTENT: How a Car Loan Impacts Your Credit\n----------------------------------\nGetting a car loan will impact your credit, and it could ultimately help or hurt your credit depending on how you handle your repayment.\nFirst, when you apply for an auto loan (or multiple loans if you try with several lenders), a record of your application (called a hard credit inquiry) will be listed in your reports. This shows that a lender checked your credit reports as part of the application process. This record remains in a credit report for up to two years, but might not have any impact on your scores after just a few months.\nLenders often report your payment history to one or more of the three major credit bureaus. This information will remain in your credit reports for many years, so it is important to make all your payments on time.\nPayment history accounts for 35% of your FICO® Score, and missing even one payment could negatively impact your scores. Too many missed payments could also result in your car getting repossessed by the lender, which has a devastating effect on your credit.\nIf you make all your payments on time, this positive information will be recorded in your file and will contribute to the overall health of your payment history—helping your scores over time. If you don't know what your credit score is, you can see your FICO® Score for free through Experian. END
 TITLE: 1 in 4 Americans Report Falling Victim to Fraud During the Holidays CONTENT: 1 in 4 Respondents Have Fallen Prey to Fraud During the Holidays\n----------------------------------------------------------------\nNearly one quarter—24%—of survey respondents reported being a victim of identity theft or fraud during the holidays, according to Experian's survey. Compared with last year's survey, that number has doubled from 12%.\nAs for how this fraud occurred: 22% of those asked said it happened when they used a credit card while shopping at a retail store; 21% said it happened while shopping online during the holidays; and 15% narrowed it down and said it happened specifically while shopping on Cyber Monday.\nThe type of fraud that saw the most growth since the last survey did not actually occur online—rather, it happened when consumers had their personal belongings stolen. Some 22% of survey respondents said the identity theft or fraud occurred when their wallet or purse was stolen or lost while shopping—that's up from 13% last year. Another 15% said they experienced fraud after their mail was stolen during the holidays—up from 4%. END
 TITLE: 1 in 4 Americans Report Falling Victim to Fraud During the Holidays CONTENT: Nearly 1 in 5 Have Experienced Pandemic-Related Scams\n-----------------------------------------------------\nOn top of the expected identity theft issues, 18% of Americans said they fell victim to fraud related to the COVID-19 pandemic, according to Experian's survey. Since the onset of the outbreak, numerous COVID-19 related scams have popped up, including fake COVID-19 testing, stimulus payment theft and more.\nOver half of respondents—57%—say they believe there is a greater risk of fraud this year due to the increase in online shopping brought on by COVID-19. Still, the risk of infection will continue to drive people to shop from home instead of doing so in person, despite worry of possible fraud.\nA total of 62% of Americans say they plan to shop more online this year due to the pandemic compared with last year. The share of people who plan to shop in-store dropped from 52% in 2019 to 43% in 2020. END
 TITLE: 1 in 4 Americans Report Falling Victim to Fraud During the Holidays CONTENT: One-Third of Americans Will Use Credit Cards Designated for Online Purchases\n----------------------------------------------------------------------------\nEven with concern over fraud on the rise, the Experian survey found that consumers are still willing to take risks to get good deals during the holidays. More than a quarter of Americans—28%—said they would risk becoming a victim of identity theft or fraud in exchange for getting a good deal on Cyber Monday. This represents a 9 percentage point growth since 2019.\nAnd while some are willing to risk it for a good deal, the majority—82%—agree that they want their banks and credit card companies to be more careful during the holidays. On top of wanting protection from financial institutions, one third—33%—of consumers will use a credit card designated to online purchases to help protect themselves while shopping. END
 TITLE: 1 in 4 Americans Report Falling Victim to Fraud During the Holidays CONTENT: Some Consumers Plan to Enroll in Identity Monitoring In New Year\n----------------------------------------------------------------\nOne in 10 consumers say they plan to make enrolling in a credit monitoring or identity theft protection service a financial New Year's resolution for 2021. Services that provide credit monitoring and identity theft protection can be lifesavers when it comes to early detection of fraud. They typically alert you to suspicious or unusual activity with your personal information so you can take action with your financial accounts and credit reports right away.\nIf you're concerned about protecting your identity going into the holidays, consider enrolling in Experian IdentityWorks℠ protection so you can make sure your personal information doesn't fall into the wrong hands. Regularly monitoring your credit reports and scores, which you can do for free with Experian, can help you know if new accounts are opened in your name without your permission and also what accounts are listed in your credit file. END
 TITLE: Experian Survey: How Is the Pandemic Affecting Personal Finances? CONTENT: Some Consumers Increased Their Saving During COVID-19\n-----------------------------------------------------\nTwo-thirds (66%) of those surveyed reported spending the same or less during the pandemic than they were this time last year. Nearly a third (30%) said they saw the greatest change to their spending on eating out and entertainment. Around a quarter (23%) said they saw their spending on nonessential purchases change, and 16% saw significant changes to their travel purchases.\nWhen spending is reduced but a household income stays the same, it's conceivable those extra funds could be allocated to savings. Though most respondents indicated that they have been spending less during the pandemic, only 28% said they were actually saving more during this time.\nBroken down by employment status, respondents with jobs were predominantly the ones who were able to increase their savings. The survey found that 32% of those with full-time jobs reported saving more now than during the same period in 2019; 34% of those with part-time jobs said the same. Just 8% of unemployed survey participants said they were saving more, and 21% of retired respondents reported putting more money into savings in 2020. END
 TITLE: Experian Survey: How Is the Pandemic Affecting Personal Finances? CONTENT: Unemployment and Reduced Wages Cause for Reduced Savings Contributions\n----------------------------------------------------------------------\nThough 28% of respondents said they've contributed more money to savings this year compared with the same time last year, 32% said the amount they're saving hasn't changed. A big share of respondents said they were either saving less than last year (20%) or not at all (19%).\nWhen asked to explain why they had stopped or reduced their savings during this time, 21% said they had become unemployed during the pandemic and 38% said they had lost hours or wages due to the COVID-19 pandemic; 32% said it was due to increased everyday expenses; and the remaining 8% cited other reasons. END
 TITLE: Experian Survey: How Is the Pandemic Affecting Personal Finances? CONTENT: Nearly Half of Consumers Who Received Stimulus Check Put Some in Savings\n------------------------------------------------------------------------\nIn response to the unprecedented economic impact of the pandemic, Congress passed the Coronavirus Aid, Relief and Economic Security (CARES) Act in March. Among other things, the bill included funding for a one-time cash payment of $1,200 to Americans making less than $99,000.\nMany U.S. consumers who received a stimulus payment in 2020 reportedly used the money for a host of things other than essential purchases, including paying down debt and contributing to investments and savings.\nWhen asked if they were able to use a portion or all of their stimulus check to contribute to their savings, 48% said they were able to save some or all of their check, while 33% answered that they weren't able to save any. The remaining portion of respondents said they did not receive a stimulus check at all. END
 TITLE: Experian Survey: How Is the Pandemic Affecting Personal Finances? CONTENT: Majority of Respondents Canceled Large Purchases Due to Pandemic\n----------------------------------------------------------------\nIn addition to reductions in everyday spending, some consumers boosted their savings by canceling large purchases as a result of COVID-19. More than half of those surveyed—54%—said they had canceled a large purchase, such as travel or home renovations, as a result of the pandemic.\nOf those who scrapped a large purchase, 49% said they used the money they saved for essential purchases. Another 31% said they were able to put the money into savings, and 19% said they spent the cash on non-essential purchases. END
 TITLE: Experian Survey: How Is the Pandemic Affecting Personal Finances? CONTENT: Consumers Continue Positive Financial Behavior Despite Pandemic\n---------------------------------------------------------------\nOverall, the fact that some people have continued to prioritize savings emphasizes that—where possible—consumers are still making prudent financial decisions during the economic downturn. Though many consumers may not have the luxury of saving leftover money at the end of each month, the ones who do appear to be preparing for a rainy day—which, no matter your financial situation, is a wise idea.\nIf you're interested in learning more about how to save and the benefits of saving, find out how to make a budget and then figure out how much you can afford to save. END
 TITLE: How Does Credit Card Autopay Work? CONTENT: What Is Autopay?\n----------------\nAutopay is a feature that some credit card issuers, lenders and service providers offer that lets you schedule automatic payments from a bank account to pay your bills. If you struggle to keep up with multiple bill due dates, autopay can work its magic by making on-time payments for you.\nCredit card issuers or merchants that offer autopay usually let you set it up in your online account dashboard. The payment may be debited on the bill due date, or you may have the option to choose another payment date. Make sure to mark this date on your calendar and keep enough cash in your account to cover the bill.\nIf there isn't enough money in your bank account when the automatic payment processes, you could get hit with fees from the merchant _and_ your bank. Also, exercise caution when giving your banking details to a company for autopay. Always double-check that a company is credible and trustworthy before authorizing it to debit payments from your account. END
 TITLE: How Does Credit Card Autopay Work? CONTENT: How to Set Up Autopay\n---------------------\nSetting up autopay can take just a few minutes once your bank account and routing number are provided. Part of the process is choosing the payment amount you want to make each month. Here are the options you may have depending on your issuer's policy:\n*   **Pay the minimum due.** Your payment is the amount of the minimum payment due.\n*   **Pay the full balance.** Your payment will pay off the entire statement balance (which may be different from your current balance).\n*   **Pay a fixed amount.** You choose a fixed payment each month. Be sure this amount is at least the minimum amount due (and ideally more) to avoid fees and keep your account in good standing.\nIf you want to make multiple payments each month, some credit card companies may let you split up the automatic payment into several installments. For example, for Citi credit cards, you may be able to set up bimonthly payments. So, if you want to autopay $100 per billing cycle, you could choose to pay in two $50 installments each month.\nKeep in mind that autopayments may still go through even if you choose to make another separate payment for the month. Say you set up autopay to never miss a payment, but also plan to add an extra payment manually to pay off your balance each month. The automatic payment that you set up may still go through as scheduled. Check with your credit card issuer to find out how they treat automatic payments when additional payments are made. To stop scheduled payments, you'll have to cancel them. END
 TITLE: How Does Credit Card Autopay Work? CONTENT: How Does Autopay Affect Your Credit Score?\n------------------------------------------\nAccidentally forgetting to make credit card payments can wreak havoc on your credit since payment history has the most influence on your FICO® Scores☉ . Using autopay for credit cards can help you establish stellar payment history with minimal effort since payments are made automatically and on time. If you already have a few late payments on your record, all isn't lost. Making on-time payments from now on using autopay could help improve your score over time.\nSetting up autopay for other service provider accounts like utilities and cable could also be beneficial. Usually, these accounts don't show up on your credit report (unless the account is sent to collections). But, with Experian Boost™† , you can add on-time utility, phone and streaming service payments to your credit report. If you use autopay to establish a positive payment history with these companies and sign up for Experian Boost, those payments could also help increase your FICO® Score powered by Experian data. END
 TITLE: How Does Credit Card Autopay Work? CONTENT: The Bottom Line\n---------------\nAutopay is a free feature that many creditors and merchants offer to automatically debit bill payments from your bank account. Setting up credit card autopay could help you build credit since it will help you consistently make on-time payments. Keep in mind that you always need to have enough money in your account to cover the autopayments you establish.\nIf you want to improve your credit score, monitoring your credit regularly can help you make a plan. Experian credit monitoring is free and comes with score tracking and alerts so you can keep tabs on your score as it grows. END
 TITLE: What Is a Credit Card Hardship Program? CONTENT: Not all credit card issuers offer hardship plans, and those that do generally don't advertise them (although many did at the start of the COVID-19 pandemic). These plans may include deferred payments, temporary reductions in your annual percentage rate (APR), relief from late fees, an installment plan to pay off your balance over time or other arrangements.\nWhen a financial setback hits, essentials such as rent, utilities, mortgage payments and groceries often take priority over credit card payments. But even if you're making your minimum monthly payments, interest on your credit card balance can add up. Credit card hardship plans provide some short-term relief that can make it easier to get a handle on your financial obligations. END
 TITLE: What Is a Credit Card Hardship Program? CONTENT: How to Apply for a Credit Card Hardship Plan\n--------------------------------------------\nTo apply for a credit card hardship plan, visit the card issuer's website to see if they offer financial hardship plans. You may be able to apply online; for example, Chase allows you to enroll online to defer one payment if you've been affected by the COVID-19 pandemic. In most cases, however, you'll need to call your card issuer to discuss options with a customer support agent.\nFirst, create a budget so you know how much you can afford each month. Be ready to explain the reason for your financial situation, such as:\n*   Job loss\n*   Pay cut\n*   Divorce\n*   Serious illness\n*   Natural disaster\nDon't wait until you've missed a payment to investigate credit card hardship plans. Under the CARES Act, any account that has a payment accommodation applied to it must be reported to credit bureaus as current if it was current when the accommodation was made. This applies to any accommodation made before 120 days from the date the COVID-19 national emergency is declared over. END
 TITLE: What Is a Credit Card Hardship Program? CONTENT: What to Consider Before Agreeing to a Financial Hardship Plan\n-------------------------------------------------------------\nBefore accepting a financial hardship plan, ask:\n*   **What documentation is needed?** You may be asked for pay stubs, divorce papers, medical bills, bank statements or other proof of financial difficulties.\n*   **When does the plan end?** Also, what payments are you responsible for when the plan ends?\n*   **What are the ongoing requirements?** Are payments automatically debited from your bank account? Do you have to work with a credit counselor? Will missing a payment expel you from the program? If you miss a payment date with American Express's hardship program, for instance, you may be removed from the program and your account may go to collections.\n*   **Can you afford it?** Make sure any minimum monthly payment adjustments are enough that they fit into your budget.\n*   **How will your credit card be affected?** Will the issuer freeze your card so you can't use it, reduce your credit limit or close the account?\n*   **How will your account status be reported to credit reporting agencies during the plan?** Some card issuers tell credit bureaus you're participating in a hardship plan. Even if this doesn't directly affect your credit score, lenders and others who check your credit report can see it, which has the potential to affect lending decisions.\nCredit card companies generally work with hardship customers on a case-by-case basis. If their first offer doesn't seem likely to help you, ask about alternatives.\nKeep records of phone conversations, emails or online chats. Get all the details of the plan in writing before signing or agreeing to anything. END
 TITLE: What Is a Credit Card Hardship Program? CONTENT: Do Credit Card Hardship Programs Affect Your Credit?\n----------------------------------------------------\nCommonly, a credit card issuer will provide a hardship accommodation by reducing the card's required minimum payment to as low as $0, which will not affect credit scores. Your creditworthiness can be affected, however, if the issuer indicates that a special accommodation has been made when it reports the account to the credit bureaus.\nAsk your card issuer how they will report your account during the hardship program. Once you're approved, occasionally check your credit report to make sure everything is as promised. If you find discrepancies, contact the credit card company and the credit bureaus. Through April 20, 2022, you can get a free copy of your credit report from each of the three major consumer credit bureaus (Experian, TransUnion and Equifax) once a week at AnnualCreditReport.com.\nA credit card hardship program could hurt your credit score if the card issuer lowers your credit limit or closes your account. Lowering your credit limit might increase your credit utilization ratio, which is an important factor in your FICO® Score☉ . Credit utilization measures the percentage of your available credit you use, and high credit card balances can drive down your scores—especially if they are above 30% of your credit limit. If the $3,000 credit limit on a card with a $1,000 balance drops to $2,000, your utilization rate goes from 30% to 50%.\nClosing your credit card account can also eventually reduce the length of your history, which can hurt your credit score. The age of your credit accounts for 15% of your FICO® Score.\nA credit card hardship program may wind up helping you improve your credit score by making it easier to pay down debt and freeing up cash for timely payments on your mortgage, student loan and other debts. END
 TITLE: What Is a Credit Card Hardship Program? CONTENT: Alternatives to Credit Card Hardship Plans\n------------------------------------------\nInstead of a credit card hardship plan, you could:\n*   **Ask the card issuer to** **lower your APR****.** Even a small drop in your interest rate could help.\n*   **Get a** **balance transfer credit card****.** A credit card with an introductory 0% APR on balance transfers will allow you to transfer your high-interest balance onto the new card and get a temporary reprieve from interest. You'll need good credit to qualify and you'll typically pay a fee of 3% or 5% of the transferred amount, but this can keep interest from accruing while you make minimum payments until you can afford to pay the balance off.\n*   **Get** **debt consolidation loan****.** This personal loan you can use to consolidate high-interest debt into a lower-interest loan with regular monthly payments.\n*   **Work with a** **credit counselor****.** Credit counselors can provide financial education, resources and debt management plans, which involve negotiating with creditors to reduce your debt and pay what you owe. Find reputable, nonprofit credit counselors through the National Foundation for Credit Counseling.\n*   **Request loan accommodations.** Contact your mortgage, student loan or auto lender to see if you can get mortgage forbearance or student loan forbearance or lower your interest rate. Doing this can help you reduce expenses so you're better able to pay down your credit cards.\n*   **Seek** **financial assistance****.** National, state and local financial assistance programs provide assistance with rent, food, utilities and more. END
 TITLE: What Is a Credit Card Hardship Program? CONTENT: Are Credit Card Hardship Plans Right for You?\n---------------------------------------------\nDuring a difficult time, a credit card hardship plan can help you manage debt and maintain your credit score. If you enroll in a plan, set up free credit monitoring to keep an eye on your credit score as you work to get your finances back on track. END
 TITLE: What Is a Cash Advance and How Does It Work? CONTENT: Most credit cards let you borrow a set amount of cash as an advance that you pay back with interest. Generally, you can only borrow up to your card's cash advance limit and not your full credit limit. To find your cash advance limit, check your credit card statement or contact the credit card company.\nWhen you take a cash advance, it gets added to your credit card balance and accrues interest until it's repaid just like purchases and balance transfers do. The annual percentage rate (APR) you're charged for a cash advance may not be the same as your APR for purchases, and you can find it on your credit card agreement or by contacting your card issuer. Unlike purchases, there's no grace period on cash advances—they begin accruing interest as soon as you borrow the money.\nThere are several ways to get a cash advance:\n*   **In person**: Take the credit card to your bank or credit union to request a cash advance. In addition to any fees and interest your credit card company charges, the bank or credit union may charge a separate fee.\n*   **At the ATM**: If you have a credit card PIN, you can visit an ATM and enter your PIN to withdraw cash. ATMs generally restrict how much money you can withdraw per day, so this only works if the amount you need is under that limit. If you don't have a credit card PIN, contact the credit card company to request one. Some card issuers will text or email you a new PIN to use right away, but most send your PIN by mail, which can take three to 10 business days.\n*   **Online**: If you have an account with the bank that issued the credit card, you may be able use the bank's website or mobile app to request a cash advance transferred into your account.\n*   **Convenience checks**: Some credit card issuers provide convenience checks you can use for cash advances. Make out the check for the amount you want and cash or deposit it at your bank or credit union. END
 TITLE: What Is a Cash Advance and How Does It Work? CONTENT: Common Cash Advance Fees\n------------------------\nCredit card cash advances usually come with high fees. Read your cardholder agreement to learn how much a cash advance will cost you before you consider borrowing one.\nHere are the typical fees to expect:\n*   **Cash advance APR**: This can be much higher than the regular APR charged on regular purchases.\n*   **Cash advance fee**: A common fee is 5% of the amount advanced or $10, whichever is higher.\n*   **ATM or bank fee**: Banks, credit unions or ATMs may charge a cash advance fee separate from the credit card company's fees.\nRegular credit card purchases give you a grace period to repay the balance before interest starts accruing that typically lasts from the last day of your billing period to the date your payment is due. You don't get this luxury with cash advances; interest begins accruing the day you receive the cash advance.\nWhen you get a cash advance on a credit card with an outstanding balance, your payments may be used to repay the purchase balance (which has a lower interest rate) before being applied to the cash advance balance (which has a higher interest rate). Contact your card issuer to find out.\nIf you have several credit cards, minimize the cost of a cash advance by using the card with the lowest cash advance APR and not using a card with a high balance. END
 TITLE: What Is a Cash Advance and How Does It Work? CONTENT: How a Cash Advance Impacts Your Credit Score\n--------------------------------------------\nA cash advance doesn't directly affect your credit score, and your credit history won't indicate you borrowed one. The cash advance balance will, however, be added to your credit card debt, which can hurt your credit score if it pushes your credit utilization ratio too high. This ratio reflects how much of your available revolving credit you're using. A high ratio can hurt your credit score, especially once it climbs above 30%.\nA cash advance could also ding your credit if taking on high-interest credit card debt makes it harder to stay on top of your bills. On-time payments are a major factor in your credit score; falling behind on payments could have a significant negative effect. END
 TITLE: What Is a Cash Advance and How Does It Work? CONTENT: Better Alternatives to a Cash Advance\n-------------------------------------\nA cash advance should be a last resort for a financial emergency. Instead, consider.\n*   **Borrowing from friends and family**: You may be able to borrow from a family member or close friend to cover your emergency. Always write up a loan agreement and repay the loan.\n*   **Lending circles**: Lending circles are small groups of individuals that pool money and lend it to group members, often at low or no interest. Mission Asset Fund is one organization that facilitates lending circles; community organizations or nonprofits in your area may offer others. If a lending circle reports to the three consumer credit bureaus (Experian, TransUnion and Equifax), paying off their loan could help improve your credit score.\n*   **Debt consolidation loans**: Debt consolidation loans are personal loans used to consolidate debt, such as high-interest credit card balances, into one new loan. Getting a debt consolidation loan at a lower interest rate than your existing debt reduces your payments, making it easier to save for emergencies or pay down debt. You're more likely to qualify for a debt consolidation loan if you have a good credit score. END
 TITLE: What Is a Cash Advance and How Does It Work? CONTENT: When to Take a Cash Advance\n---------------------------\nWhen you need cash in a hurry, a cash advance on your credit card may seem like the perfect solution. But cash advances come at a price, so don't rush into this decision without assessing all other alternatives.\nIf you decide a cash advance is your only option, make sure you understand all the costs involved. Then develop a plan to repay the advance quickly and ensure that the extra debt doesn't hurt your credit score. END
 TITLE: Should You Get a Credit Card From Your Bank? CONTENT: Is It Easier to Be Approved for a Credit Card From Your Bank?\n-------------------------------------------------------------\nOne of the main reasons you might want to weigh the credit card offers from your regular bank is that you already have a financial relationship with them. That might even make it easier to get approved.\nIf you've been a regular and reliable customer of the same bank for a long stretch of time, and your accounts are in good standing, the bank may be more inclined to extend you a new line of credit than an institution you've never worked with before. Not only that, but if you maintain a healthy balance in your account and have a solid record of paying any fees or charges that come due, your bank might take all that into account in addition to the usual factors that determine your credit score. This can be especially useful if you don't have a great credit score but do keep your bank accounts up to date.\nDepending on how creditworthy your bank deems you, you might be able to secure favorable interest rates, longer promotional periods for introductory financing (like 0% APR on purchases or balance transfers) and lower fees. END
 TITLE: Should You Get a Credit Card From Your Bank? CONTENT: Pros and Cons of Getting a Credit Card From Your Bank\n-----------------------------------------------------\nAs you consider whether to apply for a credit card from your bank versus another issuer, look at the benefits and disadvantages of doing so.\nFirst, the pros of getting a credit card from your bank:\n*   **Ease of applying**: You might find it easier and more convenient to apply online while logged in to your bank account, or even in person at a bank branch if you want to talk to a customer service representative about your options. Doing so might also be a good idea because a bank rep might be able to tell you your odds of being approved.\n*   **Convenience**: If you already have one or more accounts with your bank, then setting up a new credit card and adding it to your online profile is simple. You'll already be familiar with your banking app or website and won't have to get used to anything new. It may also make processing your monthly payments faster than establishing a payment system with another entity.\n*   **Having an alternative to a debit card**: Perhaps you have a debit card linked to your bank account that you use for withdrawing cash and making purchases. Instead of doing this, however, it's a good idea to open a credit card you can use for purchases since credit cards tend to have better fraud protection in case your card is lost, stolen or used for unauthorized charges.\n*   **Potential for generous bonuses**: You may qualify for higher benefits depending on your relationship with your bank. For instance, Bank of America Preferred Rewards members can boost their reward rate on Bank of America credit cards by 25%, 50% or 75% depending on their Preferred Rewards tier, which is determined by their qualifying combined account balance.\nNow for some of the cons of getting a credit card from your bank:\n*   **Limited options**: By sticking with a single bank, you're cutting yourself off from potentially great welcome offers and rewards from other credit card issuers.\n*   **Reduced bonuses**: Before you open a new credit card from your bank, compare the welcome bonus currently being offered with those that have been posted in the past. You might also get a better deal applying in-branch instead of via an offer that is mailed or emailed. Shop around before you hit that apply button.\n*   **No balance transfers**: If you already carry a credit card from your bank and want to open a second, you will not be able to take advantage of any promotional balance transfer options like you might with a card from another issuer. END
 TITLE: Should You Get a Credit Card From Your Bank? CONTENT: What to Consider When Getting a New Credit Card\n-----------------------------------------------\nThere are several other important factors to consider, whether you end up applying for a new credit card from your own bank with a new credit card issuer.\n*   **Whether you qualify for a specific card**: Before you submit a credit application, make sure you can qualify for any new credit card you're thinking about opening and that your credit score is within the normal range for applicants. You can review your credit report and FICO® Score☉ with a free Experian CreditWorks℠ account.\n*   **Apply for a worthwhile bonus**: A common reason one may apply for a specific credit card at a specific moment is to secure a lucrative welcome bonus that provides more points or better introductory financing than usual. Try to time your application for when the card's welcome offer is as high as possible and for when you can meet any spending or other requirements responsibly.\n*   **Earn the rewards you want**: It's also important to think about whether you want a credit card that earns rewards, and if so, what type of rewards it racks up. Perhaps you'd get the most value from cash back that can shave a few dollars off your monthly statement. On the other hand, you might prefer points you can redeem for travel, or airline miles that nab you award flights. Whatever your end goal, make sure the rewards you earn can help you achieve it.\n*   **Features and benefits to look out for**: Focus on credit cards that include perks you will use. With an airline credit card, for example, look for benefits like free checked bags and priority boarding. Or try to find a card that earns bonus cash back on specific categories, such as groceries or gas, where you tend to spend the most money each month. Finally, look at a card's purchase and travel protections to make sure you will be covered if something goes wrong with items you buy or you run into unexpected trouble on a trip.\n*   **Annual fees and interest rates**: Many credit cards charge annual fees. If you're considering a card that does, make sure you can afford it and that you get more value from the card's benefits each year than it costs to keep it open. Likewise, if you think you might end up carrying a balance, make sure your card's interest and late charges won't be so exorbitant that it sets you back financially. END
 TITLE: Should You Get a Credit Card From Your Bank? CONTENT: Credit Cards to Consider Now\n----------------------------\nAlthough the right card for you will depend on your individual circumstances, here are a few to consider right now.\n*   **Best for a high welcome bonus**: The Chase Sapphire Preferred® Card is currently offering its best-ever bonus of 100,000 points, which is earned when you spend $4,000 on purchases within the first 3 months of account opening. These points are worth $1,250 when used toward travel purchases through Chase Ultimate Rewards. Its annual fee is $95.\n*   **A wide variety of popular bonus categories**: The Capital One SavorOne Cash Rewards Credit Card earns unlimited 3% cash back on dining, entertainment, popular streaming services and at grocery stores (excluding superstores like Walmart and Target), plus 1% on all other purchases. Plus, earn 8% cash back on tickets at Vivid Seats through January 2023. There's no annual fee.\n*   **Best for cash back**: The Chase Freedom Unlimited® earns 5% cash back on travel purchased through Ultimate Rewards, 3% on dining and drugstores and 1.5% on all other purchases. It has no annual fee, and it's currently offering a $200 bonus after you spend $500 on purchases within 3 months of account opening, plus 5% cash back on grocery store purchases (not including Target or Walmart purchases) on up to $12,000 spent in the first year. END
 TITLE: Should You Get a Credit Card From Your Bank? CONTENT: How to Make Your Credit Card Work for You\n-----------------------------------------\nCredit cards are handy tools for making purchases and earning rewards, but only as long as you use them responsibly so you can build your credit rather than hurt it. You can do so by taking the following steps.\n*   **Pay on time.** Your payment history has a huge influence on your credit score, and making even just one late payment can bring your score down, not to mention potentially triggering late fees, interest charges and other penalties. So always be sure to pay your statement on time (and in full, if possible) every month.\n*   **Pay more than the minimum amount**. Most credit cards require you to pay at least a minimum amount each month to avoid late fees. More than that, though, you should try to pay as much of your statement balance as possible so you don't start carrying a large balance that accrues interest. High credit card balances will also raise your credit utilization ratio—the amount of credit you have available versus the amount you are using—which can in turn bring down your credit score.\n*   **Use your card for everyday purchases.** If you carry a card that earns rewards, you can maximize your earning by using it for most of your purchases, especially in any bonus categories it might offer. That said, only do so if you're able to pay off your balance on time and in full every month. Otherwise, interest and late fees will wipe out the value of any rewards you earn.\nGetting a credit card from your bank can be a great way to continue building your financial profile and credit history as well as earning valuable rewards. It can also be easier to qualify for a credit card from an issuer you already have a good relationship with. That said, you might want to look beyond your own bank to get cards with the best intro bonuses that earn the types of rewards that will be of most use to you. For personalized offers, check out Experian CreditMatch™. END
 TITLE: How Much Does Private Mortgage Insurance (PMI) Cost? CONTENT: How PMI Works\n-------------\nPMI is an insurance policy that protects lenders from borrowers who miss payments. You'll typically pay PMI if you put down less than 20% when you take out a conventional loan to buy a house. But it's also one of the few ways to get a loan that's not backed by the government if you want to make a low down payment.\nIf your lender requires PMI on your loan, you'll usually pay the premium as part of your monthly mortgage bill. Some lenders may also give you the option of paying the entire amount upfront, or paying some amount upfront and some with your monthly payment.\nLenders may also offer PMI-free conventional mortgages with down payments of less than 20%. These loans could have lender-paid private mortgage insurance (LPMI), however, and you may wind up with a higher interest rate instead.\nWhile PMI will increase your monthly payment, it's not all bad. Unlike mortgage insurance requirements on certain government-back loans, such as the mortgage insurance premium (MIP) on Federal Housing Authority (FHA) loans, you don't have to pay PMI for the lifetime of your loan. It may be automatically canceled by your lender, and there are several ways to proactively get rid of it. More on that below. END
 TITLE: How Much Does Private Mortgage Insurance (PMI) Cost? CONTENT: The Real Cost of PMI\n--------------------\nWhile PMI will increase the initial cost of your monthly payments, it could be a worthwhile tradeoff. You might be able to purchase a home sooner if you don't need to put 20% down. Or, you may be able to buy a larger or nicer home rather than making a large down payment.\nYou could also compare a conventional loan with PMI to a government-backed mortgage loan with MIP to see which offers the lowest monthly payment. A 2021 report from the Urban Institute shows the initial monthly payments for a conventional loan with PMI and an FHA loan with MIP based on borrowers' down payments and credit scores.\nSource: The Urban Institute\nThe monthly figures are for a $275,000 home and the amounts don't account for some expenses, such as homeowners insurance or property taxes.\nIn general, if you're not putting much down or you don't have good credit, an FHA loan may have lower monthly payments. But you could be better off with a conventional loan and PMI if you have a good credit score or can afford a larger down payment.\nYou may be able to avoid paying for mortgage insurance with other types of government-backed mortgages, such as U.S. Department of Agriculture (USDA) loans and loans through the Department of Veterans Affairs (VA). But you could pay upfront or monthly fees instead. If you qualify for either type of loan, you'll want to consider the upfront and monthly costs for these as well.\nAlso consider how long you plan on living in the home and whether you're likely to refinance your mortgage. An FHA loan's insurance premiums could remain for the life of the loan, which may increase your long-term costs. But there are several ways to cancel your PMI and lower your monthly payment. END
 TITLE: How Much Does Private Mortgage Insurance (PMI) Cost? CONTENT: How to Cancel PMI\n-----------------\nYou may need to pay a PMI premium when you first buy your home, but there are also four ways to get rid of PMI:\n*   **Automatic cancellation:** By law, your mortgage servicer can't require you to pay for PMI forever. It must automatically cancel the policy when you're scheduled to reach 22% equity (in other words, the principal balance is 78% of the home's original value), or when you're halfway through the repayment term. The timeline is based on the original loan's repayment schedule and value.\n*   **Request cancellation:** You may request a cancellation a little earlier—once you reach 20% equity based on the home's original value. However, you may need to meet other qualifications, such as not having a second mortgage, and you may have to pay for an appraisal.\n*   **Reappraise your home:** While the above methods depend on the home's original value, you may be able to pay for a reappraisal and request the PMI be canceled based on the current value and your equity. This can be beneficial if your home has quickly appreciated in value or if you've made home improvements that increased its value.\n*   **Refinance your mortgage:** Another option is to replace your mortgage with a new one. If you have at least 20% equity based on the current valuation, you may qualify for a conventional loan without PMI.\nYou may want to get rid of PMI as soon as possible to lower your mortgage payments. There's little downside, as the insurance doesn't protect borrowers. END
 TITLE: How Much Does Private Mortgage Insurance (PMI) Cost? CONTENT: Focus on Your Credit and Down Payment\n-------------------------------------\nAs you prepare to buy a home, consider how much you can afford to put down and whether you can improve your credit before applying for a loan. Higher down payments and credit scores can help you qualify for a mortgage with more favorable terms. And, if you need to get PMI, they could lead to paying less in premiums. You can check your Experian credit report for free online. After creating your account, you can also get personalized recommendations for improving your credit based on your unique credit profile. END
 TITLE: What Is a Cryptocurrency Wallet? CONTENT: How Cryptocurrency Wallets Work\n-------------------------------\nThere's a lot of jargon in the cryptocurrency world. So, before diving deeper into how cryptocurrency wallets work, let's decipher some of the key terms:\n*   A **blockchain** is the foundational technology that many cryptocurrencies use. Cryptocurrency blockchains are decentralized and public, meaning a record of all the transactions that have occurred are stored on computers around the world. Each cryptocurrency has its own blockchain.\n*   A **private key** is often a randomly generated number. It gives someone control of cryptocurrency that's on a blockchain. You need the private key if you want to send or spend cryptocurrency.\n*   A **public key** is derived from a private key. It's a bit like a cryptocurrency account number.\n*   A **cryptocurrency address** is created based on a public key as an added layer of security. It's what you share with others to receive cryptocurrencies. Anyone can look up a cryptocurrency address on the blockchain to see its transaction history.\nWhile the cryptocurrency itself is stored on the blockchain, cryptocurrency wallets store the public and private keys you need to access them and the addresses you need to receive them. You can have multiple addresses in your wallet—similar to how you can have multiple credit cards in a wallet or keys on a keychain. END
 TITLE: What Is a Cryptocurrency Wallet? CONTENT: Types of Cryptocurrency Wallets\n-------------------------------\nYou'll need a cryptocurrency wallet if you want to own Bitcoin, Ether or other cryptocurrencies. However, there are different types of wallets available.\nWallets are broadly classified as \"hot\" if the information in the wallet is connected to the internet or \"cold\" if it's stored offline. Hot wallets are more convenient if you frequently buy, sell or trade cryptocurrency, but it may be safer to store your cryptocurrency in a cold wallet. END
 TITLE: What Is a Cryptocurrency Wallet? CONTENT: ### Custodial Wallets\nMany people start with cloud-based wallets that are hosted or custodial wallets. For example, if you create an account on a cryptocurrency exchange, the exchange may set up and manage a wallet on your behalf.\nWith custodial wallets, you'll log in to your account with a username and password, similar to logging in to a bank account online. You don't have to worry about keeping track of your keys; however, you also don't control the private key—the exchange does.\nThere's a risk of losing your funds if the custodian turns out to be a scammer or is compromised, although some exchanges have insurance and keep most of their cryptocurrency in cold storage, which may provide you with some peace of mind. END
 TITLE: What Is a Cryptocurrency Wallet? CONTENT: ### Software Wallets\nYou can download mobile apps and desktop software wallets, which may also be hot wallets. Storing the wallet locally could add a layer of security, as you don't risk losing your wallet if a custodian is compromised.\nBut someone could steal the information if your computer or mobile device gets infected with malware. You also risk losing the keys if your device is lost, stolen or damaged, although some cryptocurrency wallets have 12- to 24-word recovery phrases that you can use to get your wallet back if that happens. END
 TITLE: What Is a Cryptocurrency Wallet? CONTENT: ### Hardware Wallets\nA hardware wallet stores a cryptocurrency wallet on a physical device, such as a USB drive. These cold wallets can be connected to a computer if you want to use your cryptocurrencies, but the information doesn't live on an internet-connected device or platform.\nSome hardware wallet providers also offer apps that make it easier to buy, sell or exchange cryptocurrencies but keep the private key safely hidden. END
 TITLE: What Is a Cryptocurrency Wallet? CONTENT: ### Paper Wallets\nWhen someone is using a paper wallet to store their cryptocurrency, that means their cryptocurrency information is written out on a literal piece of paper. Often, the information is created by a program and then printed, or a QR code is printed that can be scanned later. These aren't very popular options, as it's easy for the paper to be damaged or lost. END
 TITLE: What Is a Cryptocurrency Wallet? CONTENT: Where You Can Get a Crypto Wallet\n---------------------------------\nYou can get different types of cryptocurrency wallets from various sources.\nCryptocurrency exchanges, such as Coinbase and Gemini, offer free custodial wallets, though you may pay a fee to trade cryptocurrencies on the exchange. Some exchanges also have separate software wallets you can download and use to store your keys.\nThere are also other popular software options, such as the MetaMask app or browser extension that supports Ethereum-based tokens, or the Exodus desktop or mobile app. The non-custodial software options might not require you to create an account, which could help keep your identity and information private.\nLedger and Trezor are two popular hardware wallet options that work alongside the companies' apps and websites. Exodus also makes a hardware wallet. Unlike custodial and software wallets, you often have to pay for a hardware wallet. END
 TITLE: What Is a Cryptocurrency Wallet? CONTENT: Keep Your Keys Safe\n-------------------\nThere's a popular phrase in the cryptocurrency world: \"Not your keys, not your coins.\" In short, whoever controls a private key controls the cryptocurrency associated with it. Never share your private key—even if someone promises you free coins or contacts you to say there's something wrong with your account (it's a scam).\nIf you share or someone steals your private key, they can transfer your funds, and there might not be a way to get them back. Or, if you lose your private key, you might not be able to access the cryptocurrency again. END
 TITLE: Cash vs. Credit Card: Which Should I Use? CONTENT: When You Should Use a Credit Card Over Cash\n-------------------------------------------\nInstances when it makes sense to use a credit card instead of cash include the following situations.\n*   When making purchases online, by phone or through a catalog, especially when the product is unfamiliar to you, a credit card can help you avoid buyer's remorse. If the merchandise isn't all you hoped it would be, or if it arrives damaged, your credit card company can assist you to ensure you get a replacement or a refund.\n*   If you get cash back, airline miles or other rewards benefits from your card, you can benefit by using your card for everyday purchases (groceries, fuel and so on), as long as you aren't carrying a balance on that card and can pay off those charges in full and on time each month. If you carry a balance on the card, interest charges can quickly offset the value of any rewards you might accumulate.\n*   If you're working to improve or rebuild your credit, using your credit card(s) regularly for small purchases and paying your full balance on time every month can help. Each timely payment adds a positive entry to your payment history, which is the most influential factor that determines your credit scores. END
 TITLE: Cash vs. Credit Card: Which Should I Use? CONTENT: When You Should Use Cash Over a Credit Card\n-------------------------------------------\nThe main benefits of making payments with cash are straightforward.\n*   Limiting yourself to spending only the cash you have on hand during a night out, weekend away or any other occasion can make it harder to overspend or run up credit card purchases that'll lead to costly interest charges. Sticking only to cash takes discipline, but a bit of organization can help as well. Separating your money into daily or nightly \"allowances\" can help you stretch your vacation fund, for example.\n*   The protections against overspending are much the same whether you're reaching into your wallet for cash or a debit card or you're making cash payments from your checking account via a smartphone app such as Venmo, Zelle, or a digital wallet such as Apple Pay or Google Pay. If an app or debit card is your preference, be sure to pay close attention to your available balance: If the account linked to your app has overdraft protection, your financial institution might let you spend more than you have in the account, then charge you a fee for doing so.\n*   Paying cash sometimes earns you a discount as well. Independent merchants such as gas station owners may offer discounts on cash purchases to dissuade customers from using credit cards (which charge fees to merchants on each purchase).\nChoosing between paying with cash or a credit card isn't a life-or-death decision, but using each payment method appropriately can help you get the greatest benefit out of your credit cards, without paying more interest than you should. END
 TITLE: Do You Need a Real Estate Attorney to Buy a House? CONTENT: Why You Should Get a Real Estate Attorney\n-----------------------------------------\nMany states require the parties in a real estate sale to have an attorney present at closing, when all binding sale documents are signed. Those states are listed below.\nIn some cases, the buyer and seller can share the costs of this attorney; in others, each party is expected to hire their own counsel. Even in states where it's not mandatory, hiring a real estate attorney is often advisable for homebuyers.\nThe paperwork is straightforward enough in many traditional real estate transactions to be prepared by real estate agents using standard boilerplate appropriate to the state and county where the sale will take place. Having a lawyer review those documents may not be necessary, although you can probably arrange it for a reasonable fee, and the peace of mind might be well worth it.\nIt's much more important that you, as a homebuyer, have a lawyer advocating for you under any of the following circumstances:\n*   You are buying the home in a short sale from a buyer seeking to avoid foreclosure.\n*   You are buying the home in a foreclosure auction or from a lender as a real estate-owned property.\n*   The home is a rental property, and you plan on removing tenants so you can move in yourself, to renovate the property, or for any other reason.\n*   The home features unusual structures or features (in-law apartments, outbuildings) that could run up against zoning laws.\n*   You are buying a home in another state.\nA seasoned real estate attorney can help you avoid contractual surprises and guide you through any issues that arise as a home sale progresses from offer letter to closing. END
 TITLE: Do You Need a Real Estate Attorney to Buy a House? CONTENT: What Does a Real Estate Attorney Do?\n------------------------------------\nAs your advocate in the homebuying process, a real estate attorney typically handles the following tasks:\n*   **Title search and review**: The lawyer will research the status of the seller's title to the property up for sale to ensure that the seller is legally entitled to sell the home, and to identify any liens, judgments or other financial obligations that must be met before the property can be transferred to you. In cases other than short sales or foreclosures, the seller typically pays any outstanding obligations at the closing.\n*   **Sales contract prep or review**: In straightforward sales, this typically involves double-checking standardized documents prepared by a real estate agent. In more complicated sales, your attorney will play an active role in drafting or revising the sales contract to protect your interests. For instance, if a sale is contingent on the seller completing repairs on the property, your attorney can negotiate a timeline for the work to be done, specify that the seller put funds aside to cover their costs and spell out remedies you can pursue if the seller fails to get the work done as promised.\n*   **Consult at closing**: Ideally, any concerns you had with the seller will have been addressed by the time you close the deal and finalize your home purchase. The mountain of paperwork to be signed at closing can be daunting, however, so it's good to have your attorney available to explain documents and answer questions. In states where homebuyers are required to hire attorneys, this is the role they're typically required to play. END
 TITLE: Do You Need a Real Estate Attorney to Buy a House? CONTENT: How Much Does a Real Estate Attorney Cost?\n------------------------------------------\nReal estate attorneys can charge anywhere from $100 to $500 per hour, with rates often varying by location and relative demand for services. It pays to shop around for legal services, but while you may not have to pay top dollar, legal advice isn't a service you want to pinch pennies on, either.\nIt's not unusual for an attorney to set a flat fee for review of sale documents, as opposed to billing by the hour, if your home purchase is straightforward—such as if it's a sale in the state where you live, there aren't occupants that need to be evicted from the property and you're not buying at a foreclosure auction or short sale. Even then, however, it's important to recognize that issues uncovered during a standard legal review (outstanding liens against the property, for example) could lead to charges above an agreed-upon fee. END
 TITLE: Do You Need a Real Estate Attorney to Buy a House? CONTENT: State bar associations typically list attorneys by specialty and location and can be a helpful resource for finding a real estate attorney near you.\nMeet with several potential attorneys—a courtesy that should not involve any fees. Ask the following general questions, and if you're uncomfortable with the answers you get or the way those answers are delivered, keep looking until you find a lawyer you feel good about:\n*   How much do you charge, how are fees calculated, and how do you handle billing?\n*   What's the best way to communicate with you (phone call, text message or email)?\n*   How quickly can we expect a response if we call or message you with questions?\n*   How long have you been practicing real estate law?\n*   What's the best piece of general advice you'd offer a homebuyer who's your client?\nHiring a real estate attorney when you're buying a house is an added expense, but it can be well worth it if it uncovers issues that could mean even greater expenses and hassles in the future.\nOn the topic of preventing future issues, it's important to know what's going on with your credit if you plan on buying a home in the near future. You can check your credit reports from all three credit bureaus for free through AnnualCreditReport.com. Not only that, Experian allows you to view your Experian credit report as well as the FICO® Score☉ based on it for free. END
 TITLE: What Happens if a Home Appraisal Comes In Low? CONTENT: How the Appraisal Process Works\n-------------------------------\nA home appraisal is an analysis that ascertains a home's market value. It is conducted by a professional appraiser who is chosen by the lender, but typically paid by you, the buyer. An appraisal considers the attributes and condition of the property and the sale prices of comparable properties, or \"comps,\" recently sold in the local housing market.\nMortgage lenders require appraisals as part of the approval process on all loans they issue. This protects lenders in case the borrower fails to repay the loan by providing reassurance that the loan amount can be recouped by foreclosing on the property—taking it back from the borrower and reselling it at market price. The appraised price is also used to determine the amount of equity you have in your home if you seek a home equity loan or home equity line of credit: You calculate your equity by subtracting the outstanding balance on your mortgage from the home's appraised value.\nThe maximum amount a lender will issue on a mortgage is typically the appraised value of the home minus your down payment. Conventional mortgage loans sometimes require a down payment of 20% of the purchase price but, depending on your credit and the type of loan, down payments of 10% or even less may be acceptable.\nIf the appraisal sets the home value at less than your offer amount, however, you won't get a loan that covers your offer price—even if you can put down 20% of the offer price and the lender has preapproved you for a loan that covers that amount. END
 TITLE: What Happens if a Home Appraisal Comes In Low? CONTENT: You May Need Extra Cash if the Appraisal Is Low\n-----------------------------------------------\nAn appraisal can come in below the offer amount for a variety of reasons. Neighborhood housing prices may be on the decline, for instance, or the appraiser might determine that the home needs major repairs that aren't reflected in the asking price.\nRising prices and tight, competitive housing markets such as those seen across much of the U.S. over the past year also can cause appraised home values to fall short of offer prices: Buyers in bidding wars over hotly contested homes often make offers much greater than sellers' asking prices, and sometimes offers are so high that they exceed the home's appraised value.\nIf you outbid your home's appraised value, you have several options:\n*   **Accept the loan offer.** You can accept the offer based on the appraised value and then pay the seller enough cash to meet the offer price.\n*   **Withdraw your purchase offer.** Depending on the nature of your offer letter and whether local laws consider you \"under contract\" to buy the home at the time of the appraisal, withdrawing an offer could mean forfeiting some or all of any good-faith deposit (also known as earnest money) you submit with the offer. Including a check for 1% to 2% of the offer price with an offer letter is common in many (but not all) housing markets. This money is treated as a portion of your down payment but may be subject to forfeiture if the offer is withdrawn, depending on applicable local laws and the language of the offer letter or sales contract. (In some states, the offer letter _is_ a sales contract, which becomes binding as soon as the seller signs it; the offer letter and contract are separate documents in other jurisdictions, and the obligations associated with each depend on local laws.) Guidance from a real estate attorney could be helpful in this scenario.\n*   **Negotiate with the seller.** In light of the appraisal, you may get the seller to agree to a lower sale price. This is a viable strategy in cooler housing markets, but it's riskier in situations where sellers are sorting through multiple purchase offers.\n*   **Rebut the appraisal.** In some locales, the law allows you to hire an appraiser of your own to challenge the findings of the lender's appraiser. They might do so by considering a wider range of comparable properties than the lender's appraiser did, or by making a case for adding value based on amenities that are unique in the market (outbuildings, indoor pool, sauna and the like). This can be a costly process, and the bar for successful rebuttal is high. Also, in a hot real estate market, in which the seller has multiple offers to choose from, they'll likely just move on to another buyer rather than await the outcome of a challenge. END
 TITLE: What Happens if a Home Appraisal Comes In Low? CONTENT: How an Appraisal Contingency Protects You\n-----------------------------------------\nAn appraisal contingency is a clause in the offer letter or sales contract that allows you to withdraw your purchase offer in light of the appraisal results. In locations where earnest money otherwise may be forfeited for withdrawal of a purchase offer, an appraisal contingency can protect you from the loss of those funds.\nAppraisal contingencies are fairly standard buyer-protection measures, common in boilerplate real estate contract language. In today's highly competitive real estate climate, some buyers are explicitly waiving appraisal contingencies as a tactic to make their offers more attractive to sellers. This approach can make an offer stand out among multiple bids, but it's risky unless you are certain you have the cash on hand to make up any difference between the property's appraised value and your offer price.\nA lender's appraisal can come back below your purchase offer for lots of reasons, so it pays to anticipate that possibility and its implications, and to respond in a way that protects your money and your plans for buying your next home.\nAs you prepare to buy a home, and throughout the mortgage application and approval process, it's important to keep a close eye on your credit. Experian's free credit monitoring can help you spot issues and take care of them before they cause you trouble. END
 TITLE: How to Buy Car Insurance as a Senior CONTENT: How Seniors Can Get Car Insurance\n---------------------------------\nWhile the cost of an auto insurance policy can change as you get older, the process to buy one doesn't. Here are some steps you can take to find the right policy for you.\n### Gather Quotes\nOne of the best ways you can save money on a car insurance policy is to request quotes from several insurance carriers and see which one offers you the best rate. You can do this online or over the phone, by speaking with multiple insurance agents or by working with an independent agent who doesn't work for any specific insurer.\n### Compare Prices\nAs you compare quotes from various insurance companies, make sure you're looking at pricing for the same coverages. It doesn't make sense to compare the cost of full coverage from one company with a barebones policy from another, for instance. Insurance companies sometimes advertise low rates, but those prices are typically for their skimpiest policies.\nIn many cases, you can adjust the quote based on the types and amount of coverage you want. If you already have an auto insurance policy, you can use that as a guide. If not, consider speaking with an agent who can help you determine the right coverage for you. Cars financed by an auto loan you're still paying back typically need to have a certain minimum level of coverage, so keep your lender's requirements in mind when you're shopping for a policy.\n### Look for Discounts\nAuto insurance companies offer discounts as a way to incentivize new signups. While some are common, others may be unique to that insurer. As you compare your options, check to see which types of discounts they offer—including ones specifically for senior drivers. It's also worth checking out discounts that are offered through organizations you belong to, such as AARP.\n### Select an Insurer\nOnce you've done your due diligence, you can select the insurance company you want to work with and proceed to purchase a policy. END
 TITLE: How to Buy Car Insurance as a Senior CONTENT: How Much Does Car Insurance for Seniors Cost?\n---------------------------------------------\nThere's a long list of factors that go into determining the premium for a car insurance policy, and age is one of them. As people get older, the likelihood of them filing a claim or being involved in a crash increases.\nAs a result, the average cost of a car insurance policy drops to its lowest level around middle age, then starts creeping back up again. Here's what to expect, according to the 2021 state of auto insurance report by The Zebra, an online insurance broker:\nSource: The Zebra\nRemember, though, that there are many other factors that go into your insurance premium, including your gender, driving record, location, type of vehicle and more. These figures are averages, and your rate may be higher or lower, depending on the situation. END
 TITLE: How to Buy Car Insurance as a Senior CONTENT: Auto Insurance Discounts for Seniors\n------------------------------------\nThere are several discounts you can take advantage of as a senior, including general discounts available to all drivers and some specialized ones:\n*   **Mature driver discount**: Some insurers offer a discount to drivers who've reached a certain age. While some may require that you complete a defensive driving course, that's not the case with all carriers.  \n*   **Defensive driving discount**: Dozens of states have laws requiring insurance companies to offer a discount to seniors who complete a defensive driving course.\n*   **Safe driving discount**: Some insurers offer discounts to customers who've gone a certain number of years without an accident.\n*   **Low-mileage discount**: If you're retired, you may not be driving as much as you were when you had a daily commute. Update your miles driven per year, and you may see a drop in your rate. You may even consider opting for a pay-per-mile insurance plan.\n*   **Retired military discount**: Some insurance carriers offer a discount that's tailored to retired members of the military community.\n*   **Multi-vehicle discount**: If you have more than one vehicle you need to insure, you may get a discount when you add multiple cars to one policy.\n*   **Bundling discount**: You can also get a discount by bundling your auto insurance policy with other forms of insurance through the same company. This can include homeowners insurance, renters insurance, boat insurance, motorcycle insurance and more. END
 TITLE: How to Buy Car Insurance as a Senior CONTENT: A Good Credit History May Help Lower Your Premium\n-------------------------------------------------\nAnother important factor that goes into your auto insurance rate is your credit history. In most states, car insurance carriers are allowed to use what's called a credit-based insurance score to calculate your rate. This insurance score is different from a traditional credit score, but it includes many of the same elements.\nAs a result, if you're looking to maximize your savings on a new car insurance policy, take some time to improve your credit. Check your credit score regularly and review your credit report to find out if you need to take action, then take steps to address potential issues that you see.\nThis process can take time, but it can ultimately save you a lot, both when you apply for credit, and when you apply for an auto insurance policy. END
 TITLE: What Does Subprime Mean? CONTENT: Who Is Considered a Subprime Borrower?\n--------------------------------------\nLenders typically identify a subprime borrower using their credit scores, which are based on the applicant's credit history as recorded in credit reports at the three national credit bureaus (Experian, TransUnion and Equifax).\nExperian defines subprime borrowers as those with a FICO® Score☉ in the fair range, between 580 and 669. FICO® Scores in this range are below average when compared with all U.S. consumers, and borrowers with fair scores are statistically more likely than the average borrower to fail to repay their creditors.\nAs of the fourth quarter of 2018, 34.8% of U.S. consumers who have credit scores fell into the subprime FICO® Score range, according to the most recent research from Experian. That's down slightly from 35.6% in the fourth quarter of 2017.\nThose figures are useful for discussion purposes, and for studying trends, but it's important to remember that subprime isn't an absolute designation.\nIn a very real sense, subprime (like \"prime,\" the term used for credit applicants with more lender-desirable credit scores) is a moving target. Each lender defines subprime and prime as they see fit, depending on their lending strategies and business goals. What's more, different lenders define subprime using different credit scoring systems, including industry-specific scores, multiple versions of the FICO® Score, VantageScore, or even custom systems designed by the lender itself.\nNo matter how a lender defines subprime, the subprime loans offered to subprime borrowers typically carry higher interest rates and fees than those offered to prime borrowers—differences that mean subprime borrowers may pay much more than their neighbors with prime credit scores. END
 TITLE: What Does Subprime Mean? CONTENT: Types of Subprime Credit and Loans\n----------------------------------\nMany lenders have loans and credit card products geared toward subprime borrowers, and some lenders even specialize in subprime lending, although very few advertise themselves as such. If you think your credit falls into subprime territory, it may be hard to know which loans and credit cards you may qualify for until you apply.\nOne good place to start is the bank or credit union you use for your everyday finances.\nAlternatively, if you've received any offer or preapproval letters in the mail for the type of credit you need, consider those as well; chances are good they've used your credit score to target you and have a good idea of your credit standing already.\nOther borrowing opportunities subprime borrowers should consider include:\n*   **Government-backed mortgage programs**:\n*   FHA loans. Low interest mortgages backed by the Federal Housing Authority (FHA) are available with a 3.5% down payment to borrowers with credit scores of 580 or higher, and to borrowers with scores as low as 500 who can make a 10% down payment.\n*   USDA loans. U.S. Department of Agriculture (USDA) loans are available with a minimum credit score of 640 to borrowers who meet income guidelines and are buying homes in rural areas.\n*   **Subprime auto loans**:\n*   The financing officers at most car dealerships work with a variety of lenders, including subprime auto lenders. Depending on your credit score and income, they may offer a lower loan amount than a conventional lender might, and at a higher interest rate, but they may be able to help you get behind the wheel.\n*   If you don't have any luck at a traditional dealership, consider as a last resort shopping at a buy-here-pay-here dealer that offers direct financing.\n*   **Secured credit cards**: If you've been unsuccessful in applying for a credit card, consider getting a secured credit card as an interim option. With a secured credit card, you provide the lender with a sum of cash as collateral, and that amount becomes the borrowing limit on your card. You use the card as you would any other credit card, and as long as you maintain as low a balance as possible, and make your payments on time every month, your credit score will tend to improve so that after a year or so, you may be able to upgrade to a standard, unsecured, credit card. END
 TITLE: What Does Subprime Mean? CONTENT: Difference Between Subprime and Prime Consumers\n-----------------------------------------------\nWhat makes one consumer a subprime candidate for credit and another a prime borrower? The simple answer is that prime borrowers have higher credit scores than subprime borrowers, but that's just scratching the surface.\nCredit scores are derived from information found in the credit reports compiled at the national credit bureaus. Those reports, in turn, record your history of managing and repaying debt. They contain information about loans and credit cards you've taken out (including loans you may have paid off completely and credit card accounts you closed as long as 10 years ago). Credit reports keep tabs on your accounts, whether those payments were late or on time, and how close to your credit limits you are on your credit cards. If you've suffered severe financial setbacks, including bankruptcy, home foreclosure, vehicle repossession or the submission of unpaid bills to collection agencies, those events may appear on your credit report as well.\nCredit scoring systems apply sophisticated statistical analysis to the information in your credit report and, based on the historical actions of millions of consumers, look for combinations of behavior that indicate how likely you are to fail to repay your debts. This forecast is distilled into a three-digit number, typically on the scale of 300 to 850 used for both the FICO® Score and current versions of the VantageScore® system. A person with a higher credit score is statistically more likely to pay their bills than someone with a lower credit score.\nA person might have a credit score in the subprime range for at least a couple of reasons:\n*   So-called thin-file borrowers have little to no evidence of experience with debt and credit, and therefore lack enough of a track record to have earned a higher score. With time and consistent timely payment of their debts, thin-file borrowers can steadily improve their credit scores.\n*   Other borrowers may have subprime credit scores because mistakes or missteps in the past led to negative information in their credit reports that are hurting their credit scores. These borrowers can improve their credit scores as well, but the amount of time needed to do so may depend on the severity of the negative information.\nFrom a lender's standpoint, the difference between a prime borrower and a subprime borrower can be significant. While subprime borrowers are often limited to loans and credit cards with higher interest rates, and fees and relatively low borrowing limits, prime consumers have a greater range of choice, with better rates and terms available. END
 TITLE: What Does Subprime Mean? CONTENT: How to Become a Prime Consumer\n------------------------------\nCredit scores reflect an individual's credit management decisions. They can and do change, and the best way to move from the ranks of subprime borrowers to those of prime credit applicants is to develop habits that promote improvements in your credit score.\nThese include paying your bills on time every month, avoiding excessive balances on your credit cards, and demonstrating successful handling of a variety of different loans and credit types.\nWith patience and determination, it's possible for subprime borrowers to earn higher credit scores and enjoy the benefits of a prime credit score. END
 TITLE: How Secured Credit Card Deposits Work CONTENT: What Is a Security Deposit for a Credit Card?\n---------------------------------------------\nA security deposit is a refundable deposit that serves as collateral for the secured credit card. The credit card issuer holds the deposit and only uses it if you default on your credit card balance. It's important to understand that you can't use your security deposit to pay your monthly credit card bill.\nGenerally, your security deposit is equal to your credit limit. The credit card issuer may increase your credit limit after a certain time if you make on-time payments or provide an additional security deposit. Read the specific terms of the credit card you're applying for to find out how and when you can increase your credit limit.\nIf you use your secured credit card responsibly, the card issuer may offer to convert it to an unsecured credit card and refund your security deposit. Not all secured card issuers offer an unsecured option, so check the terms of the credit card you're applying for if you're interested in this feature. END
 TITLE: How Secured Credit Card Deposits Work CONTENT: How to Make a Deposit on a Secured Credit Card\n----------------------------------------------\nMaking your security deposit is usually the last step in the secured credit card application process. You'll fill out an application online, provide personal information such as your Social Security number and financial information such as your monthly income, and decide how high you want your credit limit to be. Typically, secured credit cards let you select a credit limit ranging from $200 to $2,000; some cards offer set amounts (such as $250, $500 or $1,000) for you to choose from.\nOnce you select the credit limit you want, you'll make a deposit for that amount (and pay any application fees, processing fees or other fees the card issuer charges) via electronic transfer or debit. Before you start filling out your online application, make sure you have enough money available to transfer at the end of the process.\nBecause you submit your deposit as part of the application process, you'll typically be approved immediately. Your secured credit card will then be mailed to you; as soon as you receive and activate it, you can start using it right away.\nAre you nervous about putting down a deposit online without having a credit card in hand? Some secured credit card issuers let you apply online and wait to make your security deposit once you've been approved and receive your credit card. Once you make the security deposit, the card will be activated and ready to use. Keep in mind that if you don't make the security deposit within a certain time period set by the card issuer, your card approval will be withdrawn. END
 TITLE: How Secured Credit Card Deposits Work CONTENT: When Do You Get Your Secured Credit Card Deposit Back?\n------------------------------------------------------\nIt's reassuring to know that your secured credit card deposit is refundable. But exactly when will you get the money back? In most cases, your security deposit will be refunded once your account balance is paid off and the account is closed, or when your secured credit card is converted to an unsecured credit card. Review the card's terms and conditions for the issuer's rules about when you can get your deposit back.\nEven if you don't plan to use your secured credit card anymore, there may be good reason not to close the account. Closing a credit card account could increase your credit utilization ratio, the amount of available credit you're using, which can hurt your credit score.\nInstead of closing the card, see if you can transition to an unsecured card with the same credit card issuer. For instance, some issuers will automatically offer you an unsecured credit card after you've made on-time payments on your secured card for 12 months. Others require you to request an unsecured card. Once you've transitioned to an unsecured card, the card issuer will refund your security deposit, minus any outstanding fees. END
 TITLE: How Secured Credit Card Deposits Work CONTENT: How to Get a Credit Card Without a Security Deposit\n---------------------------------------------------\nIf you want to avoid putting down a security deposit, consider working on improving your credit scores so you can qualify for an unsecured credit card. Secured credit cards can help by giving you the chance to prove you can use credit responsibly.\nBefore you apply for a secured credit card, make sure the card issuer will report your payment history to the credit reporting agencies. Once you get a secured credit card, work to improve your credit score by using the card to make small purchases every month and paying them off in full and on time. Going forward, focus on paying all of your bills on time—this is the single biggest factor that can help you attain a good credit score. Setting up automatic payments can help ensure you never miss a due date.\nIf you have any outstanding late payments, bring them current as soon as possible. And pay down credit card debt to ensure your credit utilization ratio remains below 30%. To calculate your utilization ratio, divide your total credit card balances by your total credit limits.\nCheck your credit report to make sure all the information there is correct, and dispute any items you believe to be inaccurate. You're entitled to a free credit report from each of the major credit bureaus (Experian, TransUnion and Equifax) every 12 months at AnnualCreditReport.com; you can also check your Experian credit report for free every 30 days. Also consider getting your free FICO® Score☉ from Experian to see how your efforts are paying off.\nFinally, if you pay phone and utility bills, using Experian Boost™† may also help increase your credit score. This free service uses your utility, phone and other telecom bill payments to help improve your FICO® Score. END
 TITLE: How Secured Credit Card Deposits Work CONTENT: A Deposit on Your Future\n------------------------\nPutting down a deposit on a secured credit card may be painful, especially since you can't use that deposit to pay your credit card bills. But keep in mind that you can get your deposit back once you close your account or convert it to an unsecured credit card. Ultimately, the deposit on a secured card is a small investment in building a good credit score, a robust credit history and a better financial future—and you can't put a price on that. END
 TITLE: Do You Have to Pay Auto Insurance When You’re Not Driving? CONTENT: Auto Insurance Discounts for COVID-19\n-------------------------------------\nMany auto insurance companies have stepped up to offer their customers discounts on auto insurance in response to the coronavirus pandemic. The discount might come in the form of rebates, credits or a price cut. If your insurer hasn't already notified you about what they're doing to ease the financial burden, contact them to find out what, if any, options are available and what you need to do to qualify.\nIf you foresee job loss or other coronavirus-related factors making it hard to pay your car insurance, contact your insurance company right away to ask about your options. They may be willing to work with you by setting up a payment plan or allowing you to defer payment temporarily. Don't wait until the last minute to contact your insurer—and definitely don't skip your payment. Missing payments could result in losing your insurance. END
 TITLE: Do You Have to Pay Auto Insurance When You’re Not Driving? CONTENT: Reasons for Not Driving Your Car\n--------------------------------\nEven in normal times, you might go through periods where you're not using your car. It could seem like a waste of money to pay for car insurance if:\n*   You're going overseas for an extended period\n*   You're in the military and are being deployed\n*   You've suffered an injury that will keep you from driving for several months\n*   You're repairing or restoring a car that won't be drivable for a while\n*   Your child is going off to college and leaving their car at home\nBut before you cancel, it's important to understand that car insurance protects you against more than just driving accidents. Even when your car spends most of the time in your driveway, certain coverage may be required—or is just a smart idea. END
 TITLE: Do You Have to Pay Auto Insurance When You’re Not Driving? CONTENT: What Car Insurance Coverage Is Required?\n----------------------------------------\nThere are several different types of auto insurance coverage. Here are the primary ones:\n*   **Liability coverage** covers the cost of bodily injury and property damage caused by your driving.\n*   **Collision coverage** covers damage to vehicles if you're involved in an accident.\n*   **Comprehensive coverage** protects you if your vehicle is stolen or is damaged by natural events, fire or vandalism.\n*   **Uninsured\/underinsured motorist coverage** can help pay for damages and medical costs if a driver who's uninsured or underinsured causes an accident you're involved in.\n*   **Medical payments\/personal injury protection coverage**: Medical payments coverage helps pay medical costs if someone in your vehicle is injured in an accident. Some states have personal injury protection (PIP) coverage instead. PIP covers not only medical costs, but also other expenses related to injury, such as lost wages.\nMost states require you to have a certain minimum level of insurance to protect other drivers. This typically includes liability coverage, but may also include medical payments or PIP coverage. The states that don't require insurance mandate some other proof of financial responsibility.\nStates aren't the only entities compelling you to have car insurance. If your vehicle is leased or financed, the lender typically will require a certain amount of collision or comprehensive coverage. This ensures that even if the vehicle is damaged, totaled or stolen, they still recoup the balance of the outstanding loan or lease.\nCoverage that is mandated by your state or lender isn't optional. Even if you aren't driving the car, you'll still need to maintain the minimum levels of insurance they require, or you'll be breaking the law. END
 TITLE: Do You Have to Pay Auto Insurance When You’re Not Driving? CONTENT: If you won't be driving for a while, you might be considering several options for reducing your auto insurance costs.\n*   **Canceling your insurance**: Canceling your auto insurance altogether is generally not a good idea. In addition to it possibly being against your state laws, it creates a lapse in your insurance history, which could cause insurers to consider you a high-risk driver going forward. This will make it harder to reinstate coverage when you start driving the car again, and any coverage you do get is likely to be more expensive.\n*   **Suspending your insurance**: Some insurers and states may allow you to temporarily suspend your coverage. If this is an option in your situation, it's a better choice than canceling your policy. Suspending your insurance isn't considered a lapse in coverage and can reduce your costs.  \n    Keep in mind that once your comprehensive coverage is suspended, you won't be covered if your car is stolen, vandalized or crushed by a tree branch. If you're trying to save money on car insurance, do you want to risk having to buy a new car out of pocket if the old one is stolen?\n*   **Cutting back your coverage**: Reducing your coverage can save you money while ensuring you're still protected. Some insurers will let you cut back to comprehensive-only coverage. However, your insurer may require you to store the vehicle in an approved, secured facility, not just leave it in your garage or driveway. You may also need to file documents with your state motor vehicle department certifying that the car is not in use.  \n    If your car is paid off and isn't worth very much, you can save money by canceling comprehensive and collision insurance altogether. Just know that if your car is stolen or totaled in a fire or disaster, you'll be on the hook for replacing it. END
 TITLE: Do You Have to Pay Auto Insurance When You’re Not Driving? CONTENT: Other Ways to Reduce Car Insurance Costs\n----------------------------------------\nThere are other, less drastic steps you can take to help lower your auto insurance costs while still maintaining your coverage.\n*   **Eliminate extras.** You might not even realize it, but your car insurance policy may cover things like rental cars, roadside assistance or providing a loaner car if yours is in the shop. Cutting out these little extras can save money.\n*   **Ask about usage-based insurance.** Also called _low-mileage_ or _pay-per-mile_ insurance, usage-based insurance offers lower premiums to people who don't drive very much. For example, if you drive under 10,000 or 12,000 miles annually, you might be eligible for a reduced rate.\n*   **Check into discounts.** You may be eligible for car insurance discounts based on membership in certain organizations, bundling your car and homeowners insurance with the same insurance company, or other factors.\n*   **Increase your deductible.** See how much you can save on premiums by increasing your deductible. Just be sure you're prepared to cover the larger deductible if you need to make a claim.\n*   **Shop around.** If you're not happy with the options your current insurer offers, get quotes from other insurance companies to compare prices.\n*   **Improve your credit score.** It's not a change you can make overnight, but raising your credit score might lower your insurance premiums. Car insurance companies in many states use your credit score as a factor in pricing your insurance; insurers generally offer lower rates to those with higher scores.\nThe Bottom Line\n---------------\nIt would be nice if you could simply cancel your auto insurance while you're not driving your car. In reality, however, it's not that simple. Going without auto insurance can put your physical and financial health at risk, which could end up costing you much more than any savings in premiums.\nFortunately, there are steps you can take to reduce your costs without eliminating coverage. The best place to start is by contacting your insurance company. Insurance agents will be up to date on current insurance requirements and can suggest options tailored to your specific situation. Chances are, they'll find a way you can lower your auto insurance premiums and still protect yourself, your car and everyone else on the road. END
 TITLE: Do You Have to Pay Auto Insurance When You’re Not Driving? CONTENT: The Bottom Line\n---------------\nIt would be nice if you could simply cancel your auto insurance while you're not driving your car. In reality, however, it's not that simple. Going without auto insurance can put your physical and financial health at risk, which could end up costing you much more than any savings in premiums.\nFortunately, there are steps you can take to reduce your costs without eliminating coverage. The best place to start is by contacting your insurance company. Insurance agents will be up to date on current insurance requirements and can suggest options tailored to your specific situation. Chances are, they'll find a way you can lower your auto insurance premiums and still protect yourself, your car and everyone else on the road. END
 TITLE: Why Do Auto Insurance Companies Consider Your Credit? CONTENT: How Does Your Credit Score Affect Your Insurance Rate?\n------------------------------------------------------\nThe types of credit scores that lenders and credit card issuers use to evaluate your creditworthiness won't affect your insurance rates. These scores, including many FICO® Scores☉ and VantageScore® credit scores, are created to help creditors predict the likelihood that a credit applicant will miss a payment. They might impact your ability to get a loan or the interest rate you'll receive, but they're not used for insurance purposes.\nFICO, LexisNexis and other companies also create credit-based insurance scores. Similar to general credit scores, credit-based insurance scores are largely based on your credit report from one of the major credit bureaus—Experian, TransUnion or Equifax. However, credit-based insurance scores are generally built to help insurance companies understand the likelihood that someone will file insurance claims that cost the company more than it collects in premiums.\nFactors that influence your credit scores can also affect your credit-based insurance scores. These include whether you made past payments on time and your current debt balances. If you have poor credit, you may have a harder time getting approved for an auto insurance policy or may have to pay more in premiums.\nHowever, insurance companies generally can't make a decision based solely on your credit—it's only one of many factors. Additionally, some states ban or strictly limit the use of credit-based insurance scores for use in auto insurance decisions. END
 TITLE: Why Do Auto Insurance Companies Consider Your Credit? CONTENT: What Additional Factors Do Auto Insurers Look at to Determine Rates?\n--------------------------------------------------------------------\nEven where it's allowed, your credit generally won't be the primary factor dictating whether you get offered a policy and how much you pay. Auto insurance companies consider many criteria when setting rates, including:\n*   **Your driving record**: A clean driving record can help you get lower auto insurance rates.\n*   **Where you live**: It may be more or less expensive to insure a vehicle depending on where you live, as some areas have higher rates of vandalism, theft and accidents than others.\n*   **Demographics**: Your age, sex and marital status could also impact your rates in most places.\n*   **The type of vehicle**: Some vehicles are more expensive to insure than others, which is one thing you may want to consider when buying a vehicle.\n*   **The types of insurance**: Auto insurance can encompass different types of coverage, including liability, collision and comprehensive coverage. Your deductibles and insurance limits also impact your rates.\n*   **Discounts**: You may be eligible for a wide range of discounts that can lead to lower insurance rates, such as a multi-policy discount if you also have homeowners or renters insurance with the same company.\n*   **The company**: Auto insurance providers may specialize in different types of coverage or drivers and weight factors differently. Getting quotes from several companies can help you find the best rate. END
 TITLE: Why Do Auto Insurance Companies Consider Your Credit? CONTENT: Insurance Inquiries Do Not Hurt Your Credit Score\n-------------------------------------------------\nWhen an insurance company checks your credit, a record of the credit check will be added to your credit file. You'll see this credit inquiry if you review a copy of your credit report, but because it's a soft inquiry, it won't impact your credit scores. In contrast, hard inquiries, the type that can come from applying for a new loan or credit card, can slightly hurt your credit scores temporarily.\nBecause applying for auto insurance doesn't impact your credit, you don't need to worry about rate shopping and submitting multiple insurance applications. You may even want to get quotes for a new policy every six months to a year to ensure you've still got the best deal. END
 TITLE: Why Do Auto Insurance Companies Consider Your Credit? CONTENT: How to Improve Your Credit Score Before Applying for Car Insurance\n------------------------------------------------------------------\nBecause credit-based insurance scores are largely based on the same underlying information that as other types of credit scores, similar actions can help you improve all your credit scores. These include:\n*   **Pay bills on time and in full.** Missing payments, having accounts sent to collections and filing for bankruptcy can all hurt your credit scores. On the flip side, making on-time payments can help your scores.\n*   **Pay down debts.** Having outstanding debts can hurt your credit scores, as can using a large portion of your available credit limit on your credit cards. Having low credit card balances and then paying your bill in full each month could help your score and save you money on interest.\nOver time, your credit scores may also improve as the length of your credit history increases. You may also benefit, a little, from having experience with both revolving and installment accounts in your credit history. Additionally, be mindful of applying for new credit as the resulting hard inquiries can temporarily hurt your scores. END
 TITLE: Why Do Auto Insurance Companies Consider Your Credit? CONTENT: Get Your FICO® Score for Free\n-----------------------------\nWhile you can't check your credit-based insurance scores, Experian offers you free access to your FICO® Score based on your Experian credit report. You can monitor your score to see how your actions help or hurt your credit. And, if you notice a large increase in your score, you may want to see if you can now qualify for lower insurance rates. END
 TITLE: How Much Does Credit Score Affect Auto Insurance Rates? CONTENT: How Do Credit-Based Auto Insurance Scores Affect Rates?\n-------------------------------------------------------\nCredit-based insurance scores are different from the credit scores that most people are familiar with—the credit scores that FICO® and VantageScore® calculate for use by creditors. While credit scores try to predict the likelihood that a consumer will be 90 days late on a payment in the next 24 months, credit-based insurance scores try to predict the likelihood that a consumer will file insurance claims that will cost the company more money than it collects in premiums.\nAuto insurance companies can, and often do, consider your credit history or use a credit-based insurance score before offering you coverage. It's only one piece of the puzzle, however, as insurance companies are generally prohibited from making a decision solely based on your credit.\nSome states—including California, Hawaii, Massachusetts and Michigan—strictly limit or entirely prohibit insurance companies' use of credit information in determining auto insurance rates. In these states, your credit score won't affect your insurance rates no matter how good or bad it is. END
 TITLE: How Much Does Credit Score Affect Auto Insurance Rates? CONTENT: What Else Do Auto Insurers Look at to Determine Rates?\n------------------------------------------------------\nWhether or not an insurance company uses a credit-based insurance score, a wide range of factors are considered to determine your eligibility and rates. These can include:\n*   Your driving record\n*   Where you live\n*   Demographics (your age, gender and marital status, for instance)\n*   The type of vehicle you're insuring\n*   The types of insurance you want, coverage amounts and the deductibles\nInsurance companies may take other factors into consideration as well, such as whether you qualify for discounts. A few companies also offer pay-per-mile policies, which tie cost to your usage. Or, there are companies like Root Insurance that use an app or install a device to track behavior such as how fast you drive and how aggressively you brake, and use the data to determine your eligibility and costs. END
 TITLE: How Much Does Credit Score Affect Auto Insurance Rates? CONTENT: How to Improve Your Credit Score\n--------------------------------\nWhile credit scores and credit-based insurance scores may be different, both types of scores consider similar behavior. If you have a high credit score, your credit-based insurance score is probably also high. If your credit score is low, taking action to improve it is likely to also give your credit-based insurance score a bump. Here's what you can do:\n*   Pay your bills on time every month as agreed.\n*   If you miss a payment, bring your account current as soon as possible.\n*   Decrease your credit utilization rate by paying down credit card debt.\n*   Check your credit report to ensure all the information there is accurate and up to date.\nYou can't check your credit-based insurance scores online, but Experian offers free access to your credit report and a credit score based on your Experian credit file. Using these tools, you can monitor your credit and get tips for improving your score. END
 TITLE: How Much Does Credit Score Affect Auto Insurance Rates? CONTENT: How to Get a Better Price on Car Insurance\n------------------------------------------\nIn addition to improving your credit, there are many ways to reduce your auto insurance costs.\nMany insurance companies offer discounts that can lower your premiums. These may include a good driving discount if you haven't gotten in an accident recently, or multiple-vehicle and multiple-policy discounts when you insure several vehicles or carry different types of insurance from the same company. You may also be able to qualify for a discount based on affiliations, such as an alumni association or through your employer.\nYour insurance company might not tell you about all the discounts upfront, or might not realize which ones you should receive. If you install anti-theft devices in your vehicles or aren't driving often right now, for instance, calling your insurer and letting them know may qualify you for new discounts.\nYou may also be able to lower your costs by choosing a policy with lower coverage limits or higher deductibles. If you have an older vehicle and don't have a loan or lease, only purchasing liability coverage (rather than full coverage, including collision and comprehensive) can also lead to significant savings.\nFinally, shop for auto insurance policies periodically to make sure you're getting the best price for your coverage. Even if you've paid for six months or a year in advance, you may be able to switch insurers to lock in the savings and get a prorated refund from your original insurer. END
 TITLE: How Much Does Credit Score Affect Auto Insurance Rates? CONTENT: Keep an Eye on Your Regular Expenses\n------------------------------------\nFrom subscription services to insurance, it can be easy to categorize monthly and periodic bills as fixed expenses. By shopping around, however, you can often find ways to decrease expenses, leading to regular and continued savings for months to come. Having good credit can also help you qualify for lower-cost financing, and make it easier to rent an apartment or find a new job.\nIn addition to providing free credit reports and score tracking, Experian offers the free Experian Boost™† tool, which lets you add utility, phone and certain streaming service payments to your credit history. If you have a history of paying these types of bills on time, you may be able to quickly boost your scores. END
 TITLE: Does My Auto Insurance Premium Go Down When I Turn 25? CONTENT: How Does Car Insurance Work?\n----------------------------\nCar insurance is designed to provide financial protection against the hazards that owning and driving presents. For example, if you're involved in an accident with another vehicle, hit an object or a tree falls on your car, your auto insurance policy may pay to repair or replace your car. If you damage someone else's property while driving or hurt somebody, your liability coverage will help pay for some or all of their associated costs.\nSome car insurance policies also provide other forms of coverage, such as reimbursement for a rental car if your vehicle is in the shop for a covered reason and roadside assistance.\nWhen you apply for car insurance, you'll typically share information about yourself and your vehicle. You'll also need to decide which level of insurance coverage to get:\n*   **Liability** coverage is the minimum that's required by law in many places. It protects other drivers on the road and kicks in to cover medical bills and repair bills if you cause an accident.\n*   **Collision** coverage pays for repairs to your vehicle even if you're at fault for the damage, meaning you hit property, an object or another car.\n*   **Comprehensive** coverage helps cover damage that's caused by events such as vandalism, hail, theft, fire and other natural disasters.\nIf you own your car outright, you have more freedom to pick and choose your insurance coverage as long as it meets the minimum legal requirement. If you lease your vehicle or are still paying off your auto loan, your leasing company or lender likely requires a higher level of coverage. Make sure you understand your obligations when choosing a policy.\nThe amount of coverage you get from collision and comprehensive policies is based on the value of your vehicle, but for liability coverage, you'll need to select limits for property damage and bodily injury. There's no best way to approach this, so it's important to find a good balance between the coverage amount and your budget.\nWhen you submit your application, the insurer will base the cost of your auto insurance policy on several factors, including:\n*   Age\n*   Gender\n*   Marital status\n*   Where you live\n*   Vehicle type\n*   Your driving record\n*   Your annual mileage\n*   Your credit history (in states where that's allowed)\nIt's important to shop around and get quotes from multiple insurance companies because each one weighs these factors differently. END
 TITLE: Does My Auto Insurance Premium Go Down When I Turn 25? CONTENT: Why Car Insurance Can Get Cheaper at 25\n---------------------------------------\nDrivers under the age of 25 are statistically more likely to cause an accident and file an insurance claim, so insurance companies mitigate this risk by charging higher premiums. According to 2018 data from the Insurance Information Institute, drivers ages 16 to 20 are the most likely of any age group to die in a car crash, followed by drivers ages 21 to 24. With the next age group, 25 to 34, the rate of fatal crashes drops considerably.\nGetting older changes one of the factors in your insurance, which may result in your insurer cutting your rates. Keep in mind, though, that policy periods typically last six or 12 months, and if you turn 25 in the middle of your policy's current term, the insurer won't change your rate. You'll either need to wait until it renews or switch to a different insurance carrier.\nIf you plan to wait until your policy renews, contact your insurance company to make sure that you'll get a discount when it calculates your rate for the next policy period. END
 TITLE: Does My Auto Insurance Premium Go Down When I Turn 25? CONTENT: Ways to Lower Car Insurance Costs\n---------------------------------\nWhile you can't control all of the factors that go into your car insurance rate—your date of birth is set in stone, for instance—there are some that you can control. Here are some ways you can potentially lower your car insurance costs:\n*   **Rate shop.** Shop around and get quotes online from a handful of insurance companies. Remember, each one will weigh various factors differently, and some offer discounts that others don't. It won't guarantee a lower rate, but it could help.\n*   **Adjust coverage and deductibles.** Some car insurance companies offer optional coverage that's nice to have, but may not be worth the cost. Look for ancillary coverage that you don't truly need and could stand to cut. Also, if you have the cash, consider increasing the deductible on your collision and comprehensive coverage policies.\n*   **Bundle your auto insurance.** Most insurers offer discounts to customers who purchase multiple policies. You may be able to save on your car insurance by bundling it with renters insurance, homeowners insurance, life insurance, motorcycle insurance or other policy types.\n*   **Take a defensive driving course.** Some insurance companies offer a discount if you attend a defensive driving course, either online or in-person. Check with your insurer to see if it offers this option.\n*   **Improve your credit score.** In many states, insurers might use something called a credit-based insurance score to help determine the likelihood that you'll file an insurance claim. Check your credit score and credit report to get an idea of your overall credit health. If you find areas that you can address, take action to improve your credit, which can help lower your car insurance rate.\nTake your time when choosing a policy and determining the right types of coverage. Again, you'll want to try to find a balance between what you could afford to pay if you cause an accident and your current budget for the premium. END
 TITLE: Does My Auto Insurance Premium Go Down When I Turn 25? CONTENT: Maintain Good Credit to Keep Lower Premiums\n-------------------------------------------\nSince your credit can be a factor in your insurance premiums, improving your credit may help you save.\nExperian's free credit monitoring service can help by giving you free access to your Experian credit report and FICO® Score☉ powered by Experian data. You'll also get real-time alerts when changes are made to your credit report, such as new accounts and inquiries. Monitoring your credit closely will give you the information you need to build and maintain a good credit score. END
 TITLE: How Long Does an Accident Stay on Your Insurance? CONTENT: What Happens to Your Insurance Rates After an Accident?\n-------------------------------------------------------\nSince your driving record influences your car insurance premiums, an accident could bump up your insurance costs. However, it doesn't mean that your rates will definitely skyrocket if you're involved in an accident. In some cases, they may not change at all if you weren't at fault or if it's your first accident. You're likely to see a rate hike if you've been involved in other accidents over the past few years. And, again, the same goes for moving violations.\nInsurers look at the big picture when determining your risk profile and, in turn, your rates. In this way, accidents and citations can stack on top of each other to increase your premium. Your rates could also go up after an accident if the other driver doesn't have enough insurance to cover the damage. In this situation, you might have to utilize your own uninsured\/underinsured motorist coverage, which could trigger a rate increase.\nIt's also helpful to think in terms of individual claims. A minor fender bender will likely result in a smaller claim when compared to a collision that causes serious damage or injuries. Let's say you get into an accident that's primarily your fault. If you file a claim with your insurance company that exceeds a specific amount, your premium will spike by a correlating percentage, according to the Insurance Information Institute. The correlation varies from insurer to insurer, and you can expect that rate hike to be there as long as your insurer considers the accident as a factor in your rate.\nIn some cases, an accident could result in your car being totaled, which is when the overall cost of repairs outweighs the value of the car. At that point, your insurer may provide a payout equivalent to your car's actual cash value. The value of a vehicle is typically determined by the vehicle's make and model, age, mileage and condition, among other factors, at the time of the accident. It's essentially a rough estimate of how much the car could have reasonably sold for had it not been totaled. END
 TITLE: How Long Does an Accident Stay on Your Insurance? CONTENT: What Else Affects Your Auto Insurance Rates?\n--------------------------------------------\nYour driving record isn't the only factor that affects your auto insurance rates. Every state has its own minimum coverage requirements, and rates tend to vary from state to state. Things like your gender, age and marital status and how much you drive can all come into play as well. And if you opt for a pricier car that's more expensive to repair or more likely to be stolen, you could end up paying a higher premium. Moreover, insuring a car that's leased or financed tends to be more expensive as your lessor or lender will likely require you to purchase additional coverage.\nA policy that has a higher deductible, which is the amount you'll pay in out-of-pocket costs before your policy coverage kicks in, generally comes with lower premiums, and vice versa. Just bear in mind that a high deductible could be costly in the event that you have to file a claim.\nIn most states, car insurance companies can also consider your credit when determining your rates by using a credit-based insurance score. Like your consumer credit scores, credit-based insurance scores are based on things like your debt payment history and account balances. If you have a high credit score, it's likely you also have a high credit-based insurance score. Having a strong score can unlock lower rates because it suggests that you may be less likely to file a claim in the future. END
 TITLE: How Long Does an Accident Stay on Your Insurance? CONTENT: How to Lower Your Car Insurance Rates After an Accident\n-------------------------------------------------------\nBesides being patient and waiting for the accident to no longer be considered, there are ways you may be able to offset an increase in your car insurance rates following an accident. Improving your credit is a great place to start: Even simple moves, like making timely debt payments and reducing your outstanding credit card balances, could have a big impact if your state allows the use of credit scores in insurance pricing. Review your credit by checking your free credit report and scores from Experian.\nAnother way to bring down high premiums is to explore discounts. Your insurer may offer discounts for students, military service members and seniors. You may also be able to shave your costs by bundling your auto coverage with your renters or homeowners insurance policies. Some insurers offer discounts to policyholders who take a defensive driving course or demonstrate safe driving for a certain period of time. No matter what discounts your current auto insurer may offer, be sure to shop around and compare quotes with other carriers to find the best rate.\nIf possible, it could help to reduce the number of miles you drive annually. Your average mileage plays a significant role in determining your risk and, by extension, your insurance rates. If you've started working from home or got a new job with a shorter commute, be sure to alert your insurance company so your premium can take your new driving habits into account. END
 TITLE: What Is Accident Insurance? CONTENT: What Is and Isn't Covered Under Accident Insurance?\n---------------------------------------------------\nWith accident insurance, the policyholder pays a premium to unlock coverage that can help pay for treatment and replace lost wages. Every policy is different, but they all typically contain an outline of payout amounts associated with specific injuries. Before you sign up for coverage, be sure to read the fine print, ask questions and make sure you fully understand what's covered.\nAccident insurance tends to cover a wide spectrum of injuries, including burns, lacerations, fractures, concussions and dislocations. Covered services may also include emergency transport, emergency room or urgent care visits, hospitalizations, therapy services, surgery, and even medical devices. Generally speaking, payout amounts are higher for more severe injuries. For instance, you may receive $3,000 for a fractured hip, but only $300 for a fractured toe. Similarly, some insurance carriers will pay out up to $10,000 for widespread third-degree burns, but only $100 for localized second-degree burns.\nAgain, every accident insurance plan is unique and has its own terms and conditions. When shopping around for the right policy, take a close look at any exclusions. For example, you may be on your own if you injure yourself while on the job or while participating in an excessively risky activity—like drag racing or flying in a private plane with an unlicensed pilot. Injuries that occur while you're under the influence of alcohol or narcotics will likely be off the table, as well. END
 TITLE: What Is Accident Insurance? CONTENT: Is Accident Insurance Worth It?\n-------------------------------\nWhether accident insurance is really worth it all depends on your individual situation. While it certainly isn't meant to replace traditional health insurance or disability insurance, it can be a useful supplement that helps round out your overall coverage. Those who have a health plan with a high deductible (meaning you'd have to pay a lot out of pocket before coverage kicks in) may find low-cost accident insurance valuable. Receiving a cash payout after a covered injury could help ease the financial burden of meeting that deductible.\nIt can also be helpful in providing coverage when disability insurance falls short—such as if you're injured severely enough that you require medical attention, but not so badly that you're unable to work. In this scenario, disability insurance would not kick in, but accident insurance could provide some level of financial relief.\nEach insurance provider has its own rules around eligibility. If accident insurance is being offered as an employee benefit, your eligibility may be determined in part by your employer. Things like your weekly hours and overall length of service may come into play. Alternatively, you may choose to purchase accident insurance independently as either a standalone policy or in addition to an existing dental, vision or critical illness policy. Just keep in mind that some insurers may reduce your accident insurance benefits as you age. END
 TITLE: What Is Accident Insurance? CONTENT: How Much Does Accident Insurance Cost?\n--------------------------------------\nWhen it comes to insurance policies, higher premiums typically translate to more thorough coverage and lower deductibles. How much you'll ultimately pay for accident insurance comes down to factors such as your level of coverage and age. Those who prefer a lower deductible or more inclusive coverage will likely face a steeper premium. With that said, policies tend to range in price anywhere from $5 to $50 monthly. END
 TITLE: What Is Accident Insurance? CONTENT: How to Cover Medical Costs\n--------------------------\nAccident insurance isn't the only way to offset your medical costs. There are other types of supplemental insurance and financial products available that could help relieve the burden. Some options to consider may include: END
 TITLE: How to File a Car Insurance Claim CONTENT: When Do You File a Car Insurance Claim?\n---------------------------------------\nYou're not obligated to file a claim if you're involved in an auto accident. But before you decide to pay out of pocket for repairs or medical expenses, consider the following:\n*   Did you damage the other party's vehicle?\n*   Are you unable to cover the cost of the damages?\n*   Did you or someone in the other party incur a total loss?\n*   Can you operate your vehicle safely?\n*   Do the cost of damages exceed your deductible?\n*   Were injuries sustained in the accident?\nIt's worth filing a claim if you answered yes to any of these questions. Even if the accident was minor, paying out of pocket for repairs may not be the only costs involved. If you're at fault, the other party could seek further damages down the road.\nNot at fault for the accident? You can file a claim with the other driver's auto insurance provider if you have their information. Contact the company right away, or start a claim online if the company offers this option. END
 TITLE: How to File a Car Insurance Claim CONTENT: The Steps to Filing a Car Insurance Claim\n-----------------------------------------\nTake these steps to file a car insurance claim if you've been in an accident:\n*   **Contact your insurance company.** Call from the scene (if you can) and notify your provider that you've been involved in an accident.\n*   **Contact the police.** Depending on your insurance provider and where you live, a police report and\/or a report with your state's motor vehicles office may be required depending on the type of accident. Your insurance company will also likely require a \"proof of claim\" form.\n*   **Use a mobile app to expedite the process.** If your auto insurance provider offers this option, the mobile app can help facilitate reporting the incident and starting the claims process.\n*   **Gather supporting documents.** Be sure to exchange insurance, ID and contact information with the other parties involved in the accident at the scene. Also, take pictures of the scene and of any property damage. Recording as many details as you can about the accident immediately after it occurs may help during the claims process.\n*   **Inquire about the timeline for the claim's process.** Auto insurance claims have deadlines, which vary by insurance company. Ask your provider how much time you have to submit a claim and any required documentation.\n*   **Ask about a rental car.** If your vehicle needs repairs or has been totaled, check your policy to see if it covers rental cars, or ask your provider if you're not sure.\n*   **File your claim.** Once you've gathered all the information your insurance provider needs, submit it right away.\nThe claims process may differ slightly by provider. Reach out to your insurance company to clarify any questions or concerns you may have. END
 TITLE: How to File a Car Insurance Claim CONTENT: How Can a Car Accident Impact Your Car Insurance Rates?\n-------------------------------------------------------\nThere are instances when car accidents result in higher premiums. However, insurance providers don't view all accidents as equal, and your rates may not increase at all if you're involved in an accident.\nWhen considering whether to increase premiums after an accident, auto insurance providers will assess the following:\n*   **Who's at fault**: If you're responsible for the accident, your insurance company may view you as a risky driver and increase your rates. But not being at fault doesn't necessarily mean you're in the clear for rate hikes—it depends on your driving history and the number of accidents you've been in (if any) before this incident. Your rate could also increase if the at-fault driver doesn't have adequate coverage and your insurance company has to use your uninsured\/underinsured motorist coverage to cover damages.\n*   **The claim amount**: Hefty claim amounts often result in rate increases, regardless of who's at fault. An accident that causes vehicle damage alone may not have the same impact on your premiums as accidents that result in both property damage and bodily injuries.\n*   **Your driving record**: Is your driving record squeaky clean, or does it include recent accidents or moving violations? Insurance companies take these factors into consideration when deciding if the accident will impact your insurance rate.\n*   **Incident details**: Some circumstances, like driving under the influence of alcohol or drugs, will cause your insurance provider to increase your premiums—or refuse you for coverage altogether once your current policy ends and it's time to renew.\nIf your premiums do increase after an accident, you may be able to reduce your costs in other ways. Consider these tips to reduce your car insurance rates going forward:\n*   **Shop around.** You may find more affordable car insurance elsewhere. You can use comparison sites or go straight to provider websites to shop for a new policy.\n*   **Increase your deductible.** Your deductible is the amount you have to pay out of pocket before your coverage kicks in to cover repairs and injuries. Be careful not to increase your deductible to an amount that you can't afford to pay should you have to file another claim in the future.\n*   **Reduce your coverage levels.** Review your policy to determine if you are carrying coverages you no longer need or if the coverage levels are excessive.\n*   **Adjust your coverage based on usage.** Notify your auto insurance providers if your vehicle usage has decreased since you initially purchased your policy; you may qualify for a lower rate.\n*   **Inquire about discounts.** While you may not qualify for a safe driver discount if you've just been in an accident, you may be able to save by bundling insurance policies or getting a reduced rate for good grades if you're a student. Affiliation discounts are also available for policyholders affiliated with certain employers, the armed forces or other groups. Insurance discounts aren't always advertised, so you may have to inquire to determine your eligibility.\n*   **Boost your credit health.** In states where it's allowed, auto insurance providers may use credit-based insurance scores when assessing risk. Improving your credit score and history can potentially qualify you for lower premiums when you're looking for a new policy. END
 TITLE: What’s the Best Way to Insure a New Teen Driver? CONTENT: When Does My Teen Need Car Insurance?\n-------------------------------------\nYou can minimize sticker shock by doing your homework before your teen gets a driver's license. First, find out exactly when you will need to add your teen to your auto insurance policy. Laws on this vary from state to state. Some states require teens to be insured when they receive their learner's permit; elsewhere, you can wait until your teen has a driver's license to add them to your policy. Also, some companies will let you add a teenager with a learner's permit to your auto insurance policy for free; others won't.\nStart by contacting your current auto insurance company to see when your child will need to be added to your policy and get an estimate of the cost. This gives you a starting point to work with and to see if you can find a lower price. END
 TITLE: What’s the Best Way to Insure a New Teen Driver? CONTENT: Should I Buy Separate Car Insurance for My Teenager?\n----------------------------------------------------\nIn general, it's cheaper to add your teenager to your existing car insurance policy than to purchase a separate policy for him or her. Being a homeowner, experienced driver and long-time customer of the insurance company, or bundling your home and auto insurance with the same provider, are all factors that can lower your rates compared to what a novice driver would expect to pay.\nPotentially high car insurance costs don't end when you add your teen to your policy. If your teenage driver receives several moving violations or has been involved in multiple accidents, your costs are likely to rise; the insurance company could even drop you from coverage. In this situation, it may make sense to buy a separate policy for your teenage driver. Some car insurance companies specialize in insuring drivers who have a lot of traffic tickets and accidents. Purchasing such a policy can minimize the cost of your child's insurance while allowing you to keep your existing car insurance coverage and low rates. END
 TITLE: What’s the Best Way to Insure a New Teen Driver? CONTENT: How Do I Add My Teen to My Auto Insurance?\n------------------------------------------\nWhen seeking the lowest price on car insurance for a teen driver, start with your current insurance provider. Your insurance agent can suggest ways to reduce your costs while providing the coverage your new driver needs.\nOnce you know what type of coverage your current company recommends, shop around to see if you can get a lower rate. Be sure to compare the same type and amount of coverage and deductibles from one provider to another.\nYou can go online to research car insurance and get a quote, either from specific insurance company websites or from a site that compares coverage from several companies at once. An independent agent is another option. Independent agents sell insurance from a variety of insurance carriers, so they can help you compare multiple policies and offer expert advice on ways to save.\nBefore making a decision, gather quotes from a minimum of three insurance companies. If you find a company that offers a lower rate than your present insurer, don't make a move until you weigh the cost of switching insurance companies against the savings. For example, if you're currently bundling your home and auto insurance, you will lose your bundling discount unless you also move your homeowners insurance to the new provider. If your existing insurance company offers accident forgiveness, which usually requires going three to five years without an accident to take effect, you'll have to start all over with a new provider. END
 TITLE: What’s the Best Way to Insure a New Teen Driver? CONTENT: Keep the Cost of Teen Driver Insurance Down\n-------------------------------------------\nInsuring a teenage driver, especially a boy, doesn't come cheap. However, if your teen maintains a clean driving record with no accidents or moving violations, each additional year of driving experience should mean lower premiums. Encourage safe driving by setting and enforcing ground rules and modeling good driving habits yourself. Comparison shop for car insurance once a year to make sure you're getting the best possible deal.\nShopping for car insurance for your new driver can be almost as stressful as teaching your teen to drive. But by taking some time to research your options, you can find car insurance that will protect both your teen and your bank account. END
 TITLE: Step-By-Step Checklist for Getting Car Insurance CONTENT: Understand Different Types of Car Insurance\n-------------------------------------------\nThere are several types of car insurance. \"Full coverage\" insurance usually includes the following:\n*   **Liability insurance** covers bodily injury or property damage you cause while driving.\n*   **Collision insurance** covers repairs to a vehicle or object (such as a fence) that you damage in an accident.\n*   **Comprehensive insurance** covers vehicle theft or damage unrelated to an accident, such as fire, vandalism or a tornado.\n*   **Uninsured and underinsured motorist insurance** covers medical bills and other costs from an accident caused by an uninsured or underinsured driver.\n*   **Medical payments\/personal injury protection insurance** covers medical and related costs if a passenger in your car is injured in an accident.\nYou can also add \"extra\" coverage; see Car Insurance Extras to Consider below for more. END
 TITLE: Step-By-Step Checklist for Getting Car Insurance CONTENT: Decide How Much Car Insurance You Need\n--------------------------------------\n*   Most states require a minimum amount of liability and uninsured\/underinsured driver insurance. That's a good starting point when deciding on coverage.\n*   Leased or financed cars must have comprehensive and collision coverage as mandated by the lender.\n*   If your car is older, collision and comprehensive insurance may not be worth the cost; the most they'll pay out is the total value of the car.\n*   If you own your home or have other assets, consider adding umbrella insurance to protect them.\n*   Review your budget to estimate how much insurance you can afford.\n*   Aim to strike a balance between your budget and your insurance needs. END
 TITLE: Step-By-Step Checklist for Getting Car Insurance CONTENT: Choose an Insurance Company\n---------------------------\n*   You can shop for car insurance online at insurance company websites or use an insurance comparison site like The Zebra.\n*   If you want a personal touch, talk to an insurance agent.\n    *   Ask friends and neighbors or search online review sites for recommendations.\n    *   Captive insurance agents sell insurance from one company.\n    *   Independent insurance agents sell policies from multiple carriers; they can help you shop around for the best insurance.\n*   Read car insurance reviews such as the J.D. Power Auto Insurance Satisfaction Study to see what customers say about carriers you're considering.\n*   Check A.M. Best's rating of the carrier's financial stability.\n*   Check for consumer complaints about providers at the NAIC website.\n*   If you're interested in a certain type of insurance, such as pay-per-mile coverage, look for a company that offers it.\n*   Compare quotes for the same type and amount of coverage from at least three insurance companies.\n*   To get the most accurate quote, be prepared to provide:\n    *   Make, model, year and vehicle identification number (VIN) for each car you want to insure\n    *   Driver's license information for everyone in your household you want to insure\n    *   An estimate of how many miles your cars are driven annually\n    *   Your current car insurance policy, if you have one\nThere are dozens of car insurance companies to consider. Here are some reviews to get you started in your search.\n*   AAA\n*   Allstate\n*   Elephant\n*   Esurance\n*   Farmers\n*   Geico\n*   Liberty Mutual\n*   Progressive\n*   Root\n*   State Farm END
 TITLE: Step-By-Step Checklist for Getting Car Insurance CONTENT: Look for Ways to Reduce Your Car Insurance Costs\n------------------------------------------------\n*   Maintain a clean driving record. Traffic tickets or accidents can mean higher insurance premiums.\n*   Raising your deductible can lower your coverage, but make sure you have enough savings to afford the higher deductible.\n*   If your car is older, consider reducing or eliminating collision and comprehensive coverage. If the car isn't worth much, you may not need the insurer's payout to repair or replace it.\n*   Bundle your car insurance by getting a homeowners or renters policy from the same carrier.\n*   See if your employer or organizations you belong to offer car insurance discounts.\n*   If you drive 12,000 or fewer miles a year, investigate usage-based or pay-per-mile insurance.\n*   Maintain a good credit score.\n    *   Insurance companies may charge you more if you have poor credit.\n    *   Check your credit score before you apply for insurance and take steps to improve it if necessary. END
 TITLE: Step-By-Step Checklist for Getting Car Insurance CONTENT: Car Insurance Extras to Consider\n--------------------------------\nMany insurance companies offer specialty car insurance extras that can save you money.\n*   **Accident forgiveness** prevents an accident from increasing your premiums.\n*   **Gap insurance** covers the difference between what you owe on your auto loan or lease and the car's value if the car is totaled.\n*   **Rideshare driving insurance** covers you during the period when you're logged in to the rideshare app but haven't accepted a trip request.\n*   **Roadside assistance insurance** provides emergency help for flat tires or other breakdowns.\n*   **Rental reimbursement insurance** pays for a rental car while your car is undergoing covered repairs.\n*   If you often drive in Mexico, you need **insurance from a Mexican company**; many U.S. insurers sell this through partners.\n*   **New-car replacement coverage** replaces your car with a new one of the same make and model if it's totaled within a certain number of miles or years.\n*   **Windshield\/glass insurance** replaces or repairs auto glass with little or no deductible.\n*   **Original Equipment Manufacturer (OEM) insurance** pays for using factory parts in covered repairs.\n*   **Customized equipment insurance** covers the cost to repair or replace aftermarket equipment on your car.\n*   **Classic or collectors' car insurance** covers specialized repairs, parts and restoration classic cars need.\n*   **Pet insurance coverage** pays medical costs if a pet in your car is injured in an accident.\n*   **Umbrella insurance** provides additional coverage if expenses or lawsuits exceed the limits of your car insurance. END
 TITLE: Can You Get Gap Insurance at Any Time? CONTENT: What Is the Timeframe for Buying Gap Insurance?\n-----------------------------------------------\nRules vary from one insurer to the next, but you usually can't buy gap insurance for a car that's more than two to three years old. If you do have gap insurance, it may expire after that timeframe.\nSome insurers may also require you to purchase collision and comprehensive coverage before getting gap coverage. If your car is used, or you aren't the original owner, you typically won't be able to buy gap insurance at all. END
 TITLE: Can You Get Gap Insurance at Any Time? CONTENT: Should You Buy Gap Insurance?\n-----------------------------\nGap insurance is worth looking into if the amount you owe on your loan is higher than your car's value, or you're worried that may happen. You're likely to go underwater if any of the following scenarios applies to you:\n*   You bought your car within the past year.\n*   Your down payment was less than 20%.\n*   You have a long repayment period of 60-plus months.\n*   You rolled debt from your old car into your new loan.\n*   Your make and model of car tends to lose value quickly.\n*   You put a lot of wear-and-tear on your vehicle.\nRegardless of the cause of your negative equity, gap coverage is probably worth purchasing if you can't afford to pay back the difference between your loan amount and your car's value. The insurance is unlikely to make a big dent in your pocketbook (policies can be had for as little as $20 per year, according to the Insurance Information Institute), but they can save you a bundle if you end up needing the coverage. END
 TITLE: Can You Get Gap Insurance at Any Time? CONTENT: Where Can You Buy Gap Insurance?\n--------------------------------\nBefore you start hunting for a quote, check to see if gap coverage was included in your financing. This is likely to be the case if you leased your vehicle.\nIf your financing didn't include coverage, the easiest way to buy it is through your current auto insurer. You can start by contacting the company to request a quote on the additional insurance coverage. Adding gap insurance to your policy is generally very affordable, and shouldn't be too much of a hassle to add to your policy.\nIf gap insurance isn't available through your current insurer, you may want to consider switching companies or going another route. Several nationwide and online insurance companies offer gap coverage, including Progressive, which charges an average of $5 per month, or $60 per year. You can also go through a dealership, but you could end up paying a price on the higher end of the spectrum. END
 TITLE: Can You Get Gap Insurance at Any Time? CONTENT: Saving Money on Insurance\n-------------------------\nShopping around for the best quote can save you money on insurance coverage, and so can working on your credit. In many states, insurers are allowed to consider your credit when deciding to take you on as a customer and when deciding your rates. Where it's considered as a factor, better credit can help you nab lower premiums.\nIf you're not sure what condition your credit is in, consider pulling your free credit report and scores before contacting your insurance company. Taking the extra step to improve your scores could ultimately save you money on your car insurance premiums, not just gap insurance.\nMany factors impact your premiums, however, including how experienced you are as a driver, the number of miles you drive and whether you have any accidents or moving violations in your history. Staying safe on the road and taking other steps to save on car insurance can make a big difference in your finances. If gap insurance sounds right for you, it could also be a very wise financial move. END
 TITLE: Which Traffic Violations Increase Your Insurance Rates? CONTENT: Which Traffic Violations Won't Cause Your Insurance Rates to Rise?\n------------------------------------------------------------------\nEvery insurance company has its own set of criteria for determining how traffic violations impact rates, so some tickets may affect you with one insurer but not another.\nIn general, though, when an insurance company raises your rates, it's an indication the company believes you're more at risk of filing a claim. So violations that don't necessarily show that you're a risky driver may be less likely to cause a premium hike than others.\nFor example, if you've received a parking ticket, there's little reason for an insurer to use that occurrence to justify raising your rates. The same goes for tickets for having your windows too heavily tinted or not wearing a seatbelt, as well as fix-it tickets.\nBut again, there are no hard-and-fast rules here. It's at the discretion of the insurer to define risk and how violations influence rates. END
 TITLE: Which Traffic Violations Increase Your Insurance Rates? CONTENT: Which Violations Are Likely to Cause Rate Increases?\n----------------------------------------------------\nWhile a few traffic violations—mostly non-moving violations—are unlikely to affect your rate, there are several that will. What's more, some will impact you more than others, with the highest increases coming with more severe violations.\nThe Zebra analyzed 61 million unique auto insurance rates to determine the average increase for 26 different traffic violations. Here's what the comparison website found:\nSource: The Zebra END
 TITLE: Which Traffic Violations Increase Your Insurance Rates? CONTENT: What Can You Do to Avoid the Extra Cost?\n----------------------------------------\nIt's clear that not all traffic violations are equal when it comes to your insurance rates. The length of time violations remain on your driving record can also vary depending on where you live. Speeding tickets, for instance, will stay on your record for anywhere from one to six years, depending on the state.\nIn some cases, though, you may be able to prevent the ticket from being added to your driving record, which will prevent your insurer from finding out and raising your rate:\n*   **Attend traffic school.** In some states, you may have the option to attend a defensive driving course to prevent the court from adding certain violations to your record. You'll typically need to pay a fee on top of the court fees to attend, but it could be worth the investment to prevent higher insurance rates in the long run.\n*   **Request a deferral.** Some courts may offer the chance to defer the consequences of your violation in lieu of attending traffic school. In this scenario, you'll typically need to plead guilty and pay a fee on top of the fine for the violation. In exchange, the court will place you on probation for a predetermined period. If you complete the probation with no new citations, the violation won't be added to your record.\n*   **Contest the ticket.** If you believe the ticket is unfair or inaccurate, you can go to court and argue to have the case dismissed or reduced to a lesser violation. If you can manage to create doubt of the circumstances through witnesses and evidence, you could succeed. For more serious violations, consider hiring an attorney to help.\nUnfortunately, there's no guarantee that any of these options will be available to you based on where you live and the type of traffic violation. But it won't hurt to reach out to the court and discuss some options it may have to keep your insurance premiums from spiking.\nAlso, keep in mind that more serious violations can cause your insurer to drop you entirely, which could make it difficult to get coverage from another insurance company without paying extremely high rates. The same goes if you have multiple accidents or violations and the insurer deems that you're too much of a risk to continue the relationship. END
 TITLE: Which Traffic Violations Increase Your Insurance Rates? CONTENT: Other Ways to Lower Your Auto Insurance Costs\n---------------------------------------------\nWhether or not you're facing the prospect of a rate hike due to a traffic violation, it's a good idea to consider ways to save on car insurance. Here are just a few options:\n*   **Shop around.** Each auto insurance company has its own criteria for determining rates, so even with a violation on your record, it's possible to save money by switching to a different insurer.\n*   **Ask about discounts.** You may be able to find discounts that help drive down the cost of coverage. Ask your insurance company if there are discounts available that you're not taking advantage of already. If you're shopping around for a policy, do the same with each insurer that gives you a quote.\n*   **Improve your credit.** In most states, auto insurance companies use a credit-based insurance score to help calculate your rates. Check your credit score to see where you stand, then review your credit report to identify areas that you can address. Improving credit can take time, but the effort can pay off for years to come.\n*   **Reduce coverage.** Downgrading your car insurance could be another way to save, especially if you're over-insured. Just be sure to weigh the benefits of saving now versus the costs you may face if you end up having to file a claim.\nAs you look into these and other ways to lower your auto insurance costs, you'll have a better chance of limiting the impact of a traffic violation now and in the future. END
 TITLE: Personal Loan vs. Cash Advance: Which Is Best? CONTENT: How Does a Personal Loan Work?\n------------------------------\nA personal loan is a type of installment loan, which means you'll borrow a certain amount and pay it back in fixed monthly payments for a specific period of time. Personal loans are generally unsecured, which means they're not backed by collateral—such as a house or car—that the lender can take possession of if you don't pay as agreed.\nMost lenders will use your credit score to determine your eligibility and interest rate, plus your debt-to-income ratio (DTI), which indicates how much of your gross earnings go toward debt each month. You're more likely to get approved, and get the lowest rates, if your credit score is higher than 670 and your DTI is under 36%. There are lenders that cater to those with lower scores and higher DTIs, however. Some, like Upstart, also use alternative data like employment and education history to assess eligibility, which has been shown to lead to higher applicant approval rates.\nAs of the second quarter of 2019, the average personal loan interest rate was 9.41%, according to Experian data. But rates can range from about 6% to above 100% depending on the lender, your credit and other factors. Terms commonly range from 24 to 60 months, with some reaching 84 months. The size of the personal loan you're approved for depends on your creditworthiness, but loans are typically available in amounts from less than $500 and up to $100,000. END
 TITLE: Personal Loan vs. Cash Advance: Which Is Best? CONTENT: How Does a Credit Card Cash Advance Work?\n-----------------------------------------\nA credit card cash advance is a short-term loan provided by your credit card issuer, rather than by a traditional or online lender. On your credit card statement, you'll find your individual cash advance limit, which will likely be smaller than your card's credit limit. You can generally withdraw a cash advance at an ATM with your credit card, via a check sent to you by the issuer or in person at a bank.\nWhile you won't have to go through the process of applying for a personal loan with a new lender, you'll pay credit card cash advance fees and interest. Card issuers charge an initial fee, often 3% to 5% of the cash advance amount, and the bank or ATM will typically also charge a fee for their end for the transaction.\nAdditionally, interest rates on cash advances are often higher than a card's interest rate for purchases. For instance, the Chase Freedom Unlimited® card charges 14.99% to 23.74% variable APR on purchases, but a variable 24.99% APR on cash advances. On top of it all, credit card issuers may start charging interest as soon as you take out a cash advance, which can cause them to get costly fast. END
 TITLE: Personal Loan vs. Cash Advance: Which Is Best? CONTENT: How to Choose Between a Personal Loan and a Cash Advance\n--------------------------------------------------------\nThe decision between a personal loan and a cash advance often comes down to the urgency of the need, the interest rate you're likely to pay and how quickly you can pay off the loan.\nA personal loan is best when:\n*   **You have good credit.** Those with good or excellent credit scores are likely better off choosing a personal loan than a cash advance, since cash advance interest rates are on the higher end. If you have solid credit and a low DTI, you may even get a lower interest rate on a personal loan than what you'd receive on a credit card.\n*   **You are willing to shop around.** You'll have a better chance at a low interest rate and low fees if you compare personal loan rates across multiple lenders. That means prequalifying with lenders on their websites—getting an interest rate estimate based on some basic financial information—and checking with local banks and credit unions for offers. You can get matched with personalized loan offers through Experian CreditMatch™.\n*   **You don't have a credit card, or you want to avoid a high-interest cash advance.** You won't be able to get a credit card cash advance without having a credit card in your name. In general, though, the high cost of a cash advance makes it an option that the majority of borrowers should avoid if possible. Personal loans are often more flexible, and offer more ways to avoid high fees. You may be able to get an interest rate discount if you're already a customer at the bank you borrow from, or if you sign up for automatic payments.\nAlternatively, a cash advance might be good when:\n*   **You need the money immediately.** The ability to withdraw a cash advance from an ATM makes this option attractive if you are in dire straits and need money now. But the fees at stake could make a cash advance prohibitively expensive, and risk that you won't be able to pay it off on time. A similarly fast alternative to a cash advance is a personal loan from an online lender, some of which offer same-day or next-day funding. A local credit union may also be able to provide a fast personal loan, but you'll typically have to join the credit union as a member first.\n*   **You're able to pay off the loan quickly.** If you can pay off the cash advance in just a few weeks or months, high interest rates are less of a concern, and the immediacy of the funding may win out. Before you borrow, make absolutely sure you can comfortably afford not only the cash advance payoff but also that month's other expenses and debt payments. END
 TITLE: Personal Loan vs. Cash Advance: Which Is Best? CONTENT: Other Options for Getting a Quick Cash Loan\n-------------------------------------------\nIf neither a personal loan nor a credit card cash advance will work for you, there are other options, some of which might even cost less. They include:\n*   **0% intro APR credit card**: This isn't an option for immediate cash, but an intro 0% APR credit card such as the Chase Freedom Flex℠ can help you avoid paying interest if you need to cover an emergency expense. If you're approved, cards with 0% intro APR offers give you a certain period of time—say, 12, 15 or 18 months—during which time purchases won't accrue interest. Just be sure to pay off the balance before the end of that period, or risk a high interest rate. Also, you'll often need good credit to qualify.\n*   **Lending circles**: Nonprofit organizations including Mission Asset Fund operate lending circles, which are groups of up to 12 people who borrow money from each other at low or no interest. In some cases, these organizations report payments to the credit bureaus, which means you can also build credit by repaying the loan on time. It will require some research to find a lending circle that works for you, and you may not be first in line for funding once you join.\n*   **Financial assistance programs**: You can also search for targeted assistance if you need money to pay utility bills, for instance, or rent. Call 211 for access to free guidance on the federal, state and local programs you may qualify for. Benefits.gov also offers a search tool to help you understand which government programs may meet your needs.\n*   **Borrowing from family or friends**: If a friend or family member is willing to help out, don't be afraid to ask for a loan. You can set up terms, including a repayment period and interest rate, just like a traditional loan if it would make one or both parties feel more secure.\nAvoid payday loans, title loans and pawn shop loans, however. These are quick-cash options that carry higher interest rates than cash advances and personal loans, and have the potential to trap borrowers in a cycle of debt. END
 TITLE: Personal Loan vs. Cash Advance: Which Is Best? CONTENT: How to Build Up Your Emergency Fund\n-----------------------------------\nOnce you're in a stronger financial position, direct your attention to building up an emergency cash reserve that can help you avoid the need for a quick loan in the future. The ideal size of your emergency fund is three to six months' worth of basic expenses, but it may make more sense for you to start small—with a goal of saving $200 or $500, for example.\nYou can fund this account with a windfall such as a tax refund or by automatically transferring a small amount to the account each month. A good option is an online savings account that pays you higher interest rates for saving than a typical bank would. END
 TITLE: Best Personal Loan Lenders for Bad Credit CONTENT: Avant\n-----\n[](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)[Apply](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)\non Avant's website\n**Recommended FICO® Score\\***\nFair - Very Good\nAmount\nAvailable loan amounts: $2,000 to $35,000\nEst. monthly payment: $91 to $2,048\nGrace period: 10 days\nApplication fee: $0\n##### Loan Details\n*   Personal loans from $2,000 to $35,0001 entirely online\n*   Checking your loan options will not affect your credit score\n*   Funding as soon as next business day2\n*   No collateral needed and customer support available 7 days a week\nDisclosure\nAvant is an online lender that offers unsecured personal loans with 24- to 60-month repayment terms and loan amounts as high as $35,000. Most Avant borrowers have a credit score of 600 to 700. However, even if you have a lower score, it could be worth checking your eligibility online. It's fast, free and won't impact your credit score.\nIf you're approved for a loan, you may be able to get the funds sent to your bank account by the next business day. However, Avant's unsecured loans have an upfront administration fee as high as 4.75% that will be taken out of your loan disbursement.  \nLendingPoint\n------------\n[](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)[Apply](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)\non LendingPoint's website\n**Recommended FICO® Score\\***\nFair - Good\nAmount\nAvailable loan amounts: $2,000 to $25,000\nEst. monthly payment: $95 to $1,437\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   Personal loans from $2,000 to $25,000\n*   Rates from 15.49% to 35.99% APR with no prepayment penalties\n*   Check your rate for free without impacting your credit score\n*   Qualified customers receive offers in three simple steps, and funds in as little as 24 hours if approved\n*   Simple and Secure - quick online application\n*   LendingPoint's customer success representatives are available online or by phone 24\/7, just call 888-969-0959\n*   Terms from 24 - 60 months\nDisclosure\nLendingPoint offers online personal loans for up to $25,000 with repayment terms ranging from two to five years. You can check your offers online without impacting your credit, and you could get your loan within one business day of approval. LendingPoint's loans may have an origination fee of 0% to 6% depending on your creditworthiness and state of residence.  \nUpgrade\n-------\n[](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)[Apply](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)\non Upgrade's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,095\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Affordable loans from $1,000 - $50,000 with low fixed rates that will never change, affordable monthly payments, and no prepayment penalties\n*   Quick online application -- get pre-approved in just minutes\n*   Checking your rate won't impact your credit score\n*   Review multiple loan options so you can pick the amount and term that fits your budget and timeline\n*   With automatic payments and a customizable due date, managing your account is easy and you'll be able to circle the date on your calendar when you'll be debt free\nDisclosure\nUpgrade is an online lender that offers personal loans and a card that's linked to a personal line of credit. You can see if you qualify for either option with a soft credit check. The personal loans range from $1,000 to $50,000 with an origination fee of 2.9% to 8%.\nUpgrade's loans have a repayment term of three or five years; the longer term could be a good option if you want a lower monthly payment, though a shorter term can help you pay less interest overall.  \nUpstart\n-------\n[](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)[Apply](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)\non Upstart's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,262\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Loan amounts from $1,000 - $50,000\n*   APRs from 6.46% - 35.99% with loan terms of 3 or 5 years\n*   Won't affect your credit score\n*   You can have funds in as fast as 1 day\n*   You are more than your credit score. On Upstart your education and experience help you get the rate you deserve.\nDisclosure\nUpstart is an online lending platform that stands out for its use of alternative data in underwriting new loans. While Upstart focuses on borrowers who have at least fair credit, it also offers loans to people who aren't scoreable at all.\nThe loan amounts can range from $1,000 to $50,000, with repayment terms of three or five years and a 0% to 8% origination fee. You can check to see if you qualify and review your loan offers without impacting your credit score. If you apply and are approved, the funds will be sent within one business day of when you sign your loan agreement.  \nOneMain Financial\n-----------------\n[](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)[Apply](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)\non OneMain Financial's website\n**Recommended FICO® Score\\***\nPoor - Exceptional\nAmount\nAvailable loan amounts: $1,500 to $20,000\nEst. monthly payment: $54 to $905\nGrace period: 7 days\nApplication fee: $0\n##### Loan Details\n*   Fixed rate and monthly payments\n*   No prepayment fees\n*   Easy online loan application\n*   Over 15 million customers served\n*   A trusted lender for more than 100 years\n*   Personalized service in nearly 1,400 locations\nDisclosure\nOneMain Financial offers unsecured personal loans and auto title loans for up to $20,000. You can check your loan offers online, but you may need to visit a OneMain Financial branch to complete the loan application. There are nearly 1,400 branches in 44 states, but visiting a branch in person is still an additional step over other lenders that have a fully online application process.\nIf you're approved for a loan, you may be able to choose repayment terms ranging from two to five years. The loans may be expensive because even the low end of the loans' interest rate range is high compared with what other lenders offer. There could also be a large origination fee—up to 10% in some states—and you may be offered several types of credit insurance, which could increase your cost.  \nHow Personal Loans Work\n-----------------------\nPersonal loans are often installment loans with fixed interest rates. With an unsecured personal loan, you won't need to use a vehicle, home or other property as collateral for the loan. But that's also why it can be more difficult—and expensive—to get a personal loan when you have bad credit.\nIt may be easier to get a secured personal loan and you may qualify for more favorable terms if you offer collateral, but you also risk losing your property if you can't afford the payments.\nWhen you take out a personal loan, you'll receive the entire loan right away—often via a direct transfer into your bank account. Some lenders charge an upfront fee that's taken out of the loan proceeds, but you repay the entire loan amount, generally with monthly payments.\nYou can find personal loans from different types of lenders, including traditional banks and online-only lenders. Some lenders may focus on lending to specific types of borrowers (such as those with bad credit) and also may offer personal loans for specific reasons, including consolidating credit card debt.  \nHow to Choose a Personal Loan Lender\n------------------------------------\nThere are a few considerations to keep in mind as you try to identify a good lender and get a personal loan:\n*   **Review minimum requirements.** Your creditworthiness can impact your eligibility, rates and loan amount, but lenders also often have minimum requirements you'll have to meet to be considered at all. For example, some lenders might not offer loans in your state—you can rule these out right away. Regardless of your credit score, you also might need to have a minimum debt-to-income ratio and a verifiable bank account.\n*   **Learn about the fees.** Lenders may charge upfront origination or administration fees that are taken out of your loan amount. Consider how the fee will impact how much you have to borrow and your total cost of borrowing. The fee will be incorporated in your loan offers' annual percentage rates (APRs), which makes it easier to compare offers.\n*   **Check loan offers.** Many personal loan lenders let you check your estimated loan offers with a soft credit inquiry—the type that doesn't impact your credit scores. Start with these lenders to see if you're likely to qualify and to determine which lender may offer you the best loan.\nOnce you've gotten several loan offers, you can complete an application with the lender that gives you the most favorable terms. Generally, you'll need to agree to a hard credit check at this point. You may also need to share verification documents, such as copies of a government-issued ID and pay stubs.  \nQuickly Compare Multiple Lenders and Offers\n-------------------------------------------\nRather than going lender by lender to compare loan terms yourself, Experian's CreditMatch™ personal loan marketplace lets you quickly compare partner lenders and loan offers. You can sort the results by lowest interest rate, monthly payment and repayment term.\nIf you create an account and log in, you may also be able to submit a single soft credit prequalification request. Experian will then show you personalized loan offers from multiple lending partners. You'll have up to 30 days to compare these offers and choose the best fit. END
 TITLE: Best Personal Loan Lenders for Bad Credit CONTENT: Avant\n-----\n[](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)[Apply](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)\non Avant's website\n**Recommended FICO® Score\\***\nFair - Very Good\nAmount\nAvailable loan amounts: $2,000 to $35,000\nEst. monthly payment: $91 to $2,048\nGrace period: 10 days\nApplication fee: $0\n##### Loan Details\n*   Personal loans from $2,000 to $35,0001 entirely online\n*   Checking your loan options will not affect your credit score\n*   Funding as soon as next business day2\n*   No collateral needed and customer support available 7 days a week\nDisclosure\nAvant is an online lender that offers unsecured personal loans with 24- to 60-month repayment terms and loan amounts as high as $35,000. Most Avant borrowers have a credit score of 600 to 700. However, even if you have a lower score, it could be worth checking your eligibility online. It's fast, free and won't impact your credit score.\nIf you're approved for a loan, you may be able to get the funds sent to your bank account by the next business day. However, Avant's unsecured loans have an upfront administration fee as high as 4.75% that will be taken out of your loan disbursement. END
 TITLE: Best Personal Loan Lenders for Bad Credit CONTENT: LendingPoint\n------------\n[](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)[Apply](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)\non LendingPoint's website\n**Recommended FICO® Score\\***\nFair - Good\nAmount\nAvailable loan amounts: $2,000 to $25,000\nEst. monthly payment: $95 to $1,437\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   Personal loans from $2,000 to $25,000\n*   Rates from 15.49% to 35.99% APR with no prepayment penalties\n*   Check your rate for free without impacting your credit score\n*   Qualified customers receive offers in three simple steps, and funds in as little as 24 hours if approved\n*   Simple and Secure - quick online application\n*   LendingPoint's customer success representatives are available online or by phone 24\/7, just call 888-969-0959\n*   Terms from 24 - 60 months\nDisclosure\nLendingPoint offers online personal loans for up to $25,000 with repayment terms ranging from two to five years. You can check your offers online without impacting your credit, and you could get your loan within one business day of approval. LendingPoint's loans may have an origination fee of 0% to 6% depending on your creditworthiness and state of residence.  \nUpgrade\n-------\n[](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)[Apply](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)\non Upgrade's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,095\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Affordable loans from $1,000 - $50,000 with low fixed rates that will never change, affordable monthly payments, and no prepayment penalties\n*   Quick online application -- get pre-approved in just minutes\n*   Checking your rate won't impact your credit score\n*   Review multiple loan options so you can pick the amount and term that fits your budget and timeline\n*   With automatic payments and a customizable due date, managing your account is easy and you'll be able to circle the date on your calendar when you'll be debt free\nDisclosure\nUpgrade is an online lender that offers personal loans and a card that's linked to a personal line of credit. You can see if you qualify for either option with a soft credit check. The personal loans range from $1,000 to $50,000 with an origination fee of 2.9% to 8%.\nUpgrade's loans have a repayment term of three or five years; the longer term could be a good option if you want a lower monthly payment, though a shorter term can help you pay less interest overall.  \nUpstart\n-------\n[](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)[Apply](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)\non Upstart's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,262\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Loan amounts from $1,000 - $50,000\n*   APRs from 6.46% - 35.99% with loan terms of 3 or 5 years\n*   Won't affect your credit score\n*   You can have funds in as fast as 1 day\n*   You are more than your credit score. On Upstart your education and experience help you get the rate you deserve.\nDisclosure\nUpstart is an online lending platform that stands out for its use of alternative data in underwriting new loans. While Upstart focuses on borrowers who have at least fair credit, it also offers loans to people who aren't scoreable at all.\nThe loan amounts can range from $1,000 to $50,000, with repayment terms of three or five years and a 0% to 8% origination fee. You can check to see if you qualify and review your loan offers without impacting your credit score. If you apply and are approved, the funds will be sent within one business day of when you sign your loan agreement.  \nOneMain Financial\n-----------------\n[](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)[Apply](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)\non OneMain Financial's website\n**Recommended FICO® Score\\***\nPoor - Exceptional\nAmount\nAvailable loan amounts: $1,500 to $20,000\nEst. monthly payment: $54 to $905\nGrace period: 7 days\nApplication fee: $0\n##### Loan Details\n*   Fixed rate and monthly payments\n*   No prepayment fees\n*   Easy online loan application\n*   Over 15 million customers served\n*   A trusted lender for more than 100 years\n*   Personalized service in nearly 1,400 locations\nDisclosure\nOneMain Financial offers unsecured personal loans and auto title loans for up to $20,000. You can check your loan offers online, but you may need to visit a OneMain Financial branch to complete the loan application. There are nearly 1,400 branches in 44 states, but visiting a branch in person is still an additional step over other lenders that have a fully online application process.\nIf you're approved for a loan, you may be able to choose repayment terms ranging from two to five years. The loans may be expensive because even the low end of the loans' interest rate range is high compared with what other lenders offer. There could also be a large origination fee—up to 10% in some states—and you may be offered several types of credit insurance, which could increase your cost.  \nHow Personal Loans Work\n-----------------------\nPersonal loans are often installment loans with fixed interest rates. With an unsecured personal loan, you won't need to use a vehicle, home or other property as collateral for the loan. But that's also why it can be more difficult—and expensive—to get a personal loan when you have bad credit.\nIt may be easier to get a secured personal loan and you may qualify for more favorable terms if you offer collateral, but you also risk losing your property if you can't afford the payments.\nWhen you take out a personal loan, you'll receive the entire loan right away—often via a direct transfer into your bank account. Some lenders charge an upfront fee that's taken out of the loan proceeds, but you repay the entire loan amount, generally with monthly payments.\nYou can find personal loans from different types of lenders, including traditional banks and online-only lenders. Some lenders may focus on lending to specific types of borrowers (such as those with bad credit) and also may offer personal loans for specific reasons, including consolidating credit card debt.  \nHow to Choose a Personal Loan Lender\n------------------------------------\nThere are a few considerations to keep in mind as you try to identify a good lender and get a personal loan:\n*   **Review minimum requirements.** Your creditworthiness can impact your eligibility, rates and loan amount, but lenders also often have minimum requirements you'll have to meet to be considered at all. For example, some lenders might not offer loans in your state—you can rule these out right away. Regardless of your credit score, you also might need to have a minimum debt-to-income ratio and a verifiable bank account.\n*   **Learn about the fees.** Lenders may charge upfront origination or administration fees that are taken out of your loan amount. Consider how the fee will impact how much you have to borrow and your total cost of borrowing. The fee will be incorporated in your loan offers' annual percentage rates (APRs), which makes it easier to compare offers.\n*   **Check loan offers.** Many personal loan lenders let you check your estimated loan offers with a soft credit inquiry—the type that doesn't impact your credit scores. Start with these lenders to see if you're likely to qualify and to determine which lender may offer you the best loan.\nOnce you've gotten several loan offers, you can complete an application with the lender that gives you the most favorable terms. Generally, you'll need to agree to a hard credit check at this point. You may also need to share verification documents, such as copies of a government-issued ID and pay stubs.  \nQuickly Compare Multiple Lenders and Offers\n-------------------------------------------\nRather than going lender by lender to compare loan terms yourself, Experian's CreditMatch™ personal loan marketplace lets you quickly compare partner lenders and loan offers. You can sort the results by lowest interest rate, monthly payment and repayment term.\nIf you create an account and log in, you may also be able to submit a single soft credit prequalification request. Experian will then show you personalized loan offers from multiple lending partners. You'll have up to 30 days to compare these offers and choose the best fit. END
 TITLE: Best Personal Loan Lenders for Bad Credit CONTENT: LendingPoint\n------------\n[](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)[Apply](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)\non LendingPoint's website\n**Recommended FICO® Score\\***\nFair - Good\nAmount\nAvailable loan amounts: $2,000 to $25,000\nEst. monthly payment: $95 to $1,437\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   Personal loans from $2,000 to $25,000\n*   Rates from 15.49% to 35.99% APR with no prepayment penalties\n*   Check your rate for free without impacting your credit score\n*   Qualified customers receive offers in three simple steps, and funds in as little as 24 hours if approved\n*   Simple and Secure - quick online application\n*   LendingPoint's customer success representatives are available online or by phone 24\/7, just call 888-969-0959\n*   Terms from 24 - 60 months\nDisclosure\nLendingPoint offers online personal loans for up to $25,000 with repayment terms ranging from two to five years. You can check your offers online without impacting your credit, and you could get your loan within one business day of approval. LendingPoint's loans may have an origination fee of 0% to 6% depending on your creditworthiness and state of residence. END
 TITLE: Best Personal Loan Lenders for Bad Credit CONTENT: Upgrade\n-------\n[](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)[Apply](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)\non Upgrade's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,095\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Affordable loans from $1,000 - $50,000 with low fixed rates that will never change, affordable monthly payments, and no prepayment penalties\n*   Quick online application -- get pre-approved in just minutes\n*   Checking your rate won't impact your credit score\n*   Review multiple loan options so you can pick the amount and term that fits your budget and timeline\n*   With automatic payments and a customizable due date, managing your account is easy and you'll be able to circle the date on your calendar when you'll be debt free\nDisclosure\nUpgrade is an online lender that offers personal loans and a card that's linked to a personal line of credit. You can see if you qualify for either option with a soft credit check. The personal loans range from $1,000 to $50,000 with an origination fee of 2.9% to 8%.\nUpgrade's loans have a repayment term of three or five years; the longer term could be a good option if you want a lower monthly payment, though a shorter term can help you pay less interest overall.  \nUpstart\n-------\n[](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)[Apply](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)\non Upstart's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,262\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Loan amounts from $1,000 - $50,000\n*   APRs from 6.46% - 35.99% with loan terms of 3 or 5 years\n*   Won't affect your credit score\n*   You can have funds in as fast as 1 day\n*   You are more than your credit score. On Upstart your education and experience help you get the rate you deserve.\nDisclosure\nUpstart is an online lending platform that stands out for its use of alternative data in underwriting new loans. While Upstart focuses on borrowers who have at least fair credit, it also offers loans to people who aren't scoreable at all.\nThe loan amounts can range from $1,000 to $50,000, with repayment terms of three or five years and a 0% to 8% origination fee. You can check to see if you qualify and review your loan offers without impacting your credit score. If you apply and are approved, the funds will be sent within one business day of when you sign your loan agreement.  \nOneMain Financial\n-----------------\n[](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)[Apply](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)\non OneMain Financial's website\n**Recommended FICO® Score\\***\nPoor - Exceptional\nAmount\nAvailable loan amounts: $1,500 to $20,000\nEst. monthly payment: $54 to $905\nGrace period: 7 days\nApplication fee: $0\n##### Loan Details\n*   Fixed rate and monthly payments\n*   No prepayment fees\n*   Easy online loan application\n*   Over 15 million customers served\n*   A trusted lender for more than 100 years\n*   Personalized service in nearly 1,400 locations\nDisclosure\nOneMain Financial offers unsecured personal loans and auto title loans for up to $20,000. You can check your loan offers online, but you may need to visit a OneMain Financial branch to complete the loan application. There are nearly 1,400 branches in 44 states, but visiting a branch in person is still an additional step over other lenders that have a fully online application process.\nIf you're approved for a loan, you may be able to choose repayment terms ranging from two to five years. The loans may be expensive because even the low end of the loans' interest rate range is high compared with what other lenders offer. There could also be a large origination fee—up to 10% in some states—and you may be offered several types of credit insurance, which could increase your cost.  \nHow Personal Loans Work\n-----------------------\nPersonal loans are often installment loans with fixed interest rates. With an unsecured personal loan, you won't need to use a vehicle, home or other property as collateral for the loan. But that's also why it can be more difficult—and expensive—to get a personal loan when you have bad credit.\nIt may be easier to get a secured personal loan and you may qualify for more favorable terms if you offer collateral, but you also risk losing your property if you can't afford the payments.\nWhen you take out a personal loan, you'll receive the entire loan right away—often via a direct transfer into your bank account. Some lenders charge an upfront fee that's taken out of the loan proceeds, but you repay the entire loan amount, generally with monthly payments.\nYou can find personal loans from different types of lenders, including traditional banks and online-only lenders. Some lenders may focus on lending to specific types of borrowers (such as those with bad credit) and also may offer personal loans for specific reasons, including consolidating credit card debt.  \nHow to Choose a Personal Loan Lender\n------------------------------------\nThere are a few considerations to keep in mind as you try to identify a good lender and get a personal loan:\n*   **Review minimum requirements.** Your creditworthiness can impact your eligibility, rates and loan amount, but lenders also often have minimum requirements you'll have to meet to be considered at all. For example, some lenders might not offer loans in your state—you can rule these out right away. Regardless of your credit score, you also might need to have a minimum debt-to-income ratio and a verifiable bank account.\n*   **Learn about the fees.** Lenders may charge upfront origination or administration fees that are taken out of your loan amount. Consider how the fee will impact how much you have to borrow and your total cost of borrowing. The fee will be incorporated in your loan offers' annual percentage rates (APRs), which makes it easier to compare offers.\n*   **Check loan offers.** Many personal loan lenders let you check your estimated loan offers with a soft credit inquiry—the type that doesn't impact your credit scores. Start with these lenders to see if you're likely to qualify and to determine which lender may offer you the best loan.\nOnce you've gotten several loan offers, you can complete an application with the lender that gives you the most favorable terms. Generally, you'll need to agree to a hard credit check at this point. You may also need to share verification documents, such as copies of a government-issued ID and pay stubs.  \nQuickly Compare Multiple Lenders and Offers\n-------------------------------------------\nRather than going lender by lender to compare loan terms yourself, Experian's CreditMatch™ personal loan marketplace lets you quickly compare partner lenders and loan offers. You can sort the results by lowest interest rate, monthly payment and repayment term.\nIf you create an account and log in, you may also be able to submit a single soft credit prequalification request. Experian will then show you personalized loan offers from multiple lending partners. You'll have up to 30 days to compare these offers and choose the best fit. END
 TITLE: Best Personal Loan Lenders for Bad Credit CONTENT: Upgrade\n-------\n[](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)[Apply](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)\non Upgrade's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,095\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Affordable loans from $1,000 - $50,000 with low fixed rates that will never change, affordable monthly payments, and no prepayment penalties\n*   Quick online application -- get pre-approved in just minutes\n*   Checking your rate won't impact your credit score\n*   Review multiple loan options so you can pick the amount and term that fits your budget and timeline\n*   With automatic payments and a customizable due date, managing your account is easy and you'll be able to circle the date on your calendar when you'll be debt free\nDisclosure\nUpgrade is an online lender that offers personal loans and a card that's linked to a personal line of credit. You can see if you qualify for either option with a soft credit check. The personal loans range from $1,000 to $50,000 with an origination fee of 2.9% to 8%.\nUpgrade's loans have a repayment term of three or five years; the longer term could be a good option if you want a lower monthly payment, though a shorter term can help you pay less interest overall. END
 TITLE: Best Personal Loan Lenders for Bad Credit CONTENT: Upstart\n-------\n[](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)[Apply](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)\non Upstart's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,262\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Loan amounts from $1,000 - $50,000\n*   APRs from 6.46% - 35.99% with loan terms of 3 or 5 years\n*   Won't affect your credit score\n*   You can have funds in as fast as 1 day\n*   You are more than your credit score. On Upstart your education and experience help you get the rate you deserve.\nDisclosure\nUpstart is an online lending platform that stands out for its use of alternative data in underwriting new loans. While Upstart focuses on borrowers who have at least fair credit, it also offers loans to people who aren't scoreable at all.\nThe loan amounts can range from $1,000 to $50,000, with repayment terms of three or five years and a 0% to 8% origination fee. You can check to see if you qualify and review your loan offers without impacting your credit score. If you apply and are approved, the funds will be sent within one business day of when you sign your loan agreement.  \nOneMain Financial\n-----------------\n[](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)[Apply](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)\non OneMain Financial's website\n**Recommended FICO® Score\\***\nPoor - Exceptional\nAmount\nAvailable loan amounts: $1,500 to $20,000\nEst. monthly payment: $54 to $905\nGrace period: 7 days\nApplication fee: $0\n##### Loan Details\n*   Fixed rate and monthly payments\n*   No prepayment fees\n*   Easy online loan application\n*   Over 15 million customers served\n*   A trusted lender for more than 100 years\n*   Personalized service in nearly 1,400 locations\nDisclosure\nOneMain Financial offers unsecured personal loans and auto title loans for up to $20,000. You can check your loan offers online, but you may need to visit a OneMain Financial branch to complete the loan application. There are nearly 1,400 branches in 44 states, but visiting a branch in person is still an additional step over other lenders that have a fully online application process.\nIf you're approved for a loan, you may be able to choose repayment terms ranging from two to five years. The loans may be expensive because even the low end of the loans' interest rate range is high compared with what other lenders offer. There could also be a large origination fee—up to 10% in some states—and you may be offered several types of credit insurance, which could increase your cost.  \nHow Personal Loans Work\n-----------------------\nPersonal loans are often installment loans with fixed interest rates. With an unsecured personal loan, you won't need to use a vehicle, home or other property as collateral for the loan. But that's also why it can be more difficult—and expensive—to get a personal loan when you have bad credit.\nIt may be easier to get a secured personal loan and you may qualify for more favorable terms if you offer collateral, but you also risk losing your property if you can't afford the payments.\nWhen you take out a personal loan, you'll receive the entire loan right away—often via a direct transfer into your bank account. Some lenders charge an upfront fee that's taken out of the loan proceeds, but you repay the entire loan amount, generally with monthly payments.\nYou can find personal loans from different types of lenders, including traditional banks and online-only lenders. Some lenders may focus on lending to specific types of borrowers (such as those with bad credit) and also may offer personal loans for specific reasons, including consolidating credit card debt.  \nHow to Choose a Personal Loan Lender\n------------------------------------\nThere are a few considerations to keep in mind as you try to identify a good lender and get a personal loan:\n*   **Review minimum requirements.** Your creditworthiness can impact your eligibility, rates and loan amount, but lenders also often have minimum requirements you'll have to meet to be considered at all. For example, some lenders might not offer loans in your state—you can rule these out right away. Regardless of your credit score, you also might need to have a minimum debt-to-income ratio and a verifiable bank account.\n*   **Learn about the fees.** Lenders may charge upfront origination or administration fees that are taken out of your loan amount. Consider how the fee will impact how much you have to borrow and your total cost of borrowing. The fee will be incorporated in your loan offers' annual percentage rates (APRs), which makes it easier to compare offers.\n*   **Check loan offers.** Many personal loan lenders let you check your estimated loan offers with a soft credit inquiry—the type that doesn't impact your credit scores. Start with these lenders to see if you're likely to qualify and to determine which lender may offer you the best loan.\nOnce you've gotten several loan offers, you can complete an application with the lender that gives you the most favorable terms. Generally, you'll need to agree to a hard credit check at this point. You may also need to share verification documents, such as copies of a government-issued ID and pay stubs.  \nQuickly Compare Multiple Lenders and Offers\n-------------------------------------------\nRather than going lender by lender to compare loan terms yourself, Experian's CreditMatch™ personal loan marketplace lets you quickly compare partner lenders and loan offers. You can sort the results by lowest interest rate, monthly payment and repayment term.\nIf you create an account and log in, you may also be able to submit a single soft credit prequalification request. Experian will then show you personalized loan offers from multiple lending partners. You'll have up to 30 days to compare these offers and choose the best fit. END
 TITLE: Best Personal Loan Lenders for Bad Credit CONTENT: Upstart\n-------\n[](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)[Apply](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)\non Upstart's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,262\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Loan amounts from $1,000 - $50,000\n*   APRs from 6.46% - 35.99% with loan terms of 3 or 5 years\n*   Won't affect your credit score\n*   You can have funds in as fast as 1 day\n*   You are more than your credit score. On Upstart your education and experience help you get the rate you deserve.\nDisclosure\nUpstart is an online lending platform that stands out for its use of alternative data in underwriting new loans. While Upstart focuses on borrowers who have at least fair credit, it also offers loans to people who aren't scoreable at all.\nThe loan amounts can range from $1,000 to $50,000, with repayment terms of three or five years and a 0% to 8% origination fee. You can check to see if you qualify and review your loan offers without impacting your credit score. If you apply and are approved, the funds will be sent within one business day of when you sign your loan agreement. END
 TITLE: Best Personal Loan Lenders for Bad Credit CONTENT: OneMain Financial\n-----------------\n[](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)[Apply](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)\non OneMain Financial's website\n**Recommended FICO® Score\\***\nPoor - Exceptional\nAmount\nAvailable loan amounts: $1,500 to $20,000\nEst. monthly payment: $54 to $905\nGrace period: 7 days\nApplication fee: $0\n##### Loan Details\n*   Fixed rate and monthly payments\n*   No prepayment fees\n*   Easy online loan application\n*   Over 15 million customers served\n*   A trusted lender for more than 100 years\n*   Personalized service in nearly 1,400 locations\nDisclosure\nOneMain Financial offers unsecured personal loans and auto title loans for up to $20,000. You can check your loan offers online, but you may need to visit a OneMain Financial branch to complete the loan application. There are nearly 1,400 branches in 44 states, but visiting a branch in person is still an additional step over other lenders that have a fully online application process.\nIf you're approved for a loan, you may be able to choose repayment terms ranging from two to five years. The loans may be expensive because even the low end of the loans' interest rate range is high compared with what other lenders offer. There could also be a large origination fee—up to 10% in some states—and you may be offered several types of credit insurance, which could increase your cost.  \nHow Personal Loans Work\n-----------------------\nPersonal loans are often installment loans with fixed interest rates. With an unsecured personal loan, you won't need to use a vehicle, home or other property as collateral for the loan. But that's also why it can be more difficult—and expensive—to get a personal loan when you have bad credit.\nIt may be easier to get a secured personal loan and you may qualify for more favorable terms if you offer collateral, but you also risk losing your property if you can't afford the payments.\nWhen you take out a personal loan, you'll receive the entire loan right away—often via a direct transfer into your bank account. Some lenders charge an upfront fee that's taken out of the loan proceeds, but you repay the entire loan amount, generally with monthly payments.\nYou can find personal loans from different types of lenders, including traditional banks and online-only lenders. Some lenders may focus on lending to specific types of borrowers (such as those with bad credit) and also may offer personal loans for specific reasons, including consolidating credit card debt.  \nHow to Choose a Personal Loan Lender\n------------------------------------\nThere are a few considerations to keep in mind as you try to identify a good lender and get a personal loan:\n*   **Review minimum requirements.** Your creditworthiness can impact your eligibility, rates and loan amount, but lenders also often have minimum requirements you'll have to meet to be considered at all. For example, some lenders might not offer loans in your state—you can rule these out right away. Regardless of your credit score, you also might need to have a minimum debt-to-income ratio and a verifiable bank account.\n*   **Learn about the fees.** Lenders may charge upfront origination or administration fees that are taken out of your loan amount. Consider how the fee will impact how much you have to borrow and your total cost of borrowing. The fee will be incorporated in your loan offers' annual percentage rates (APRs), which makes it easier to compare offers.\n*   **Check loan offers.** Many personal loan lenders let you check your estimated loan offers with a soft credit inquiry—the type that doesn't impact your credit scores. Start with these lenders to see if you're likely to qualify and to determine which lender may offer you the best loan.\nOnce you've gotten several loan offers, you can complete an application with the lender that gives you the most favorable terms. Generally, you'll need to agree to a hard credit check at this point. You may also need to share verification documents, such as copies of a government-issued ID and pay stubs.  \nQuickly Compare Multiple Lenders and Offers\n-------------------------------------------\nRather than going lender by lender to compare loan terms yourself, Experian's CreditMatch™ personal loan marketplace lets you quickly compare partner lenders and loan offers. You can sort the results by lowest interest rate, monthly payment and repayment term.\nIf you create an account and log in, you may also be able to submit a single soft credit prequalification request. Experian will then show you personalized loan offers from multiple lending partners. You'll have up to 30 days to compare these offers and choose the best fit. END
 TITLE: Best Personal Loan Lenders for Bad Credit CONTENT: OneMain Financial\n-----------------\n[](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)[Apply](;site=exp&placement=ae-single-embed&sessionid=E6BA5CF2-D08A-A03D-6AF5-6E97A8696A86&pageid=blogs:ask-experian:best-personal-loan-lenders-for-bad-credit&previouspageid=&ecsstaticid=5C9B4095-2284-BC37-6F8C-5A92AE1FA106)\non OneMain Financial's website\n**Recommended FICO® Score\\***\nPoor - Exceptional\nAmount\nAvailable loan amounts: $1,500 to $20,000\nEst. monthly payment: $54 to $905\nGrace period: 7 days\nApplication fee: $0\n##### Loan Details\n*   Fixed rate and monthly payments\n*   No prepayment fees\n*   Easy online loan application\n*   Over 15 million customers served\n*   A trusted lender for more than 100 years\n*   Personalized service in nearly 1,400 locations\nDisclosure\nOneMain Financial offers unsecured personal loans and auto title loans for up to $20,000. You can check your loan offers online, but you may need to visit a OneMain Financial branch to complete the loan application. There are nearly 1,400 branches in 44 states, but visiting a branch in person is still an additional step over other lenders that have a fully online application process.\nIf you're approved for a loan, you may be able to choose repayment terms ranging from two to five years. The loans may be expensive because even the low end of the loans' interest rate range is high compared with what other lenders offer. There could also be a large origination fee—up to 10% in some states—and you may be offered several types of credit insurance, which could increase your cost. END
 TITLE: Best Personal Loan Lenders for Bad Credit CONTENT: How Personal Loans Work\n-----------------------\nPersonal loans are often installment loans with fixed interest rates. With an unsecured personal loan, you won't need to use a vehicle, home or other property as collateral for the loan. But that's also why it can be more difficult—and expensive—to get a personal loan when you have bad credit.\nIt may be easier to get a secured personal loan and you may qualify for more favorable terms if you offer collateral, but you also risk losing your property if you can't afford the payments.\nWhen you take out a personal loan, you'll receive the entire loan right away—often via a direct transfer into your bank account. Some lenders charge an upfront fee that's taken out of the loan proceeds, but you repay the entire loan amount, generally with monthly payments.\nYou can find personal loans from different types of lenders, including traditional banks and online-only lenders. Some lenders may focus on lending to specific types of borrowers (such as those with bad credit) and also may offer personal loans for specific reasons, including consolidating credit card debt. END
 TITLE: Best Personal Loan Lenders for Bad Credit CONTENT: How to Choose a Personal Loan Lender\n------------------------------------\nThere are a few considerations to keep in mind as you try to identify a good lender and get a personal loan:\n*   **Review minimum requirements.** Your creditworthiness can impact your eligibility, rates and loan amount, but lenders also often have minimum requirements you'll have to meet to be considered at all. For example, some lenders might not offer loans in your state—you can rule these out right away. Regardless of your credit score, you also might need to have a minimum debt-to-income ratio and a verifiable bank account.\n*   **Learn about the fees.** Lenders may charge upfront origination or administration fees that are taken out of your loan amount. Consider how the fee will impact how much you have to borrow and your total cost of borrowing. The fee will be incorporated in your loan offers' annual percentage rates (APRs), which makes it easier to compare offers.\n*   **Check loan offers.** Many personal loan lenders let you check your estimated loan offers with a soft credit inquiry—the type that doesn't impact your credit scores. Start with these lenders to see if you're likely to qualify and to determine which lender may offer you the best loan.\nOnce you've gotten several loan offers, you can complete an application with the lender that gives you the most favorable terms. Generally, you'll need to agree to a hard credit check at this point. You may also need to share verification documents, such as copies of a government-issued ID and pay stubs. END
 TITLE: Best Personal Loan Lenders for Bad Credit CONTENT: Quickly Compare Multiple Lenders and Offers\n-------------------------------------------\nRather than going lender by lender to compare loan terms yourself, Experian's CreditMatch™ personal loan marketplace lets you quickly compare partner lenders and loan offers. You can sort the results by lowest interest rate, monthly payment and repayment term.\nIf you create an account and log in, you may also be able to submit a single soft credit prequalification request. Experian will then show you personalized loan offers from multiple lending partners. You'll have up to 30 days to compare these offers and choose the best fit. END
 TITLE: What Are the Different Types of Personal Loans? CONTENT: What Is a Personal Loan?\n------------------------\nA personal loan is an installment loan that's given to a borrower without a requirement to use the money for a specific purchase. In contrast, when you take out a loan such as an auto loan, student loan or mortgage, you're restricted to using the money for those express purposes.\nSome lenders let you check your personal loan offers online without any impact to your credit scores. When you apply, you may need to share your personal and financial information and agree to a hard credit pull, which can have a small, temporary negative effect on your credit scores. If you qualify, you may be able to choose between several offers with varying repayment periods, interest rates and monthly payments.\nPersonal loans generally have fixed interest rates, and monthly payments that stay the same for the life of the loan. Some lenders charge an upfront origination or administration fee that you won't get back. You can also generally repay the loan early without being charged additional fees or penalties. END
 TITLE: What Are the Different Types of Personal Loans? CONTENT: ### Unsecured Personal Loans\nMany personal loans are unsecured loans, meaning you don't have to offer collateral the lender can take possession of if you default on the loan. Unsecured loans may be less risky for borrowers because you won't lose any possessions if you can't afford a payment, but they may have higher fees, interest rates and credit requirements than secured loans.\nLenders that offer unsecured personal loans may specialize in lending to borrowers with good credit—SoFi, for example. Others, such as Avant, are open to borrowers with fair credit or better. END
 TITLE: What Are the Different Types of Personal Loans? CONTENT: ### Secured Personal Loans\nSecured personal loans aren't as common as unsecured personal loans. Generally, you'll secure the loan with money that's locked in a savings account, certificate of deposit or money market account. You may find them at credit unions and banks, or a lender such as OneMain Financial. A credit-builder loan is a type of secured personal loan that's offered specifically to help people build credit. END
 TITLE: What Are the Different Types of Personal Loans? CONTENT: ### Personal Loans From Lending Platforms\nSome online services, such as Prosper and Upstart, are marketplaces or platforms that connect borrowers with lenders. The application and repayment experience might not be hugely different for borrowers, although it could take a little longer to receive the funds once your application is approved versus a more traditional loan. END
 TITLE: What Are the Different Types of Personal Loans? CONTENT: ### Personal Loans for Specific Purposes\nMany lenders advertise their personal loans with a specific use in mind. For example, you might find a lender that has different pages on its website for wedding, funeral and emergency loans. While the loan offers target people who want to take out a loan for that purpose, the loans themselves are often simply personal loans. If you get one of these loans, you won't necessarily be required to use all (or even any) of the money for the stated purpose. END
 TITLE: What Are the Different Types of Personal Loans? CONTENT: ### Debt Consolidation Loans\nOne common type of targeted personal loan—and a common reason people take out personal loans—is a consolidation loan to consolidate debts that have higher interest rates. For example, Payoff offers personal loans that can be used to pay off credit card balances. By moving the debt to a lower-rate personal loan with a fixed repayment term, borrowers can save money while also having a more structured repayment plan. Some lenders, such as Upgrade, can send your loan directly to your credit card issuers or other lenders. END
 TITLE: What Are the Different Types of Personal Loans? CONTENT: Types of Personal Loans to Avoid\n--------------------------------\nSome personal loans are generally last-resort options that you should try to avoid.\n*   Payday loans: Payday loans are short-term loans with very high fees. These may leave borrowers in a debt cycle where they wind up taking out new loans to pay off their current debts.\n*   Title loans: Auto title loans can be easy to get, but you need to use your vehicle as collateral. They may have short repayment terms and high interest rates that could leave you worse off if you can't afford a payment and the lender repossesses your vehicle.\n*   Pawn shop loans: Some pawn loans may be cheaper than payday loans. However, you risk losing the items you pawn or may have to pay a fee to extend the repayment term.\nWhile your options may be limited if you have bad credit, these personal loans may have high fees or interest rates and short repayment terms that make them difficult to repay. Missing payments or defaulting on loans will only worsen your credit situation. END
 TITLE: What Are the Different Types of Personal Loans? CONTENT: When to Use a Credit Card Instead\n---------------------------------\nWhile personal loans can be a good fit for many situations, sometimes using a credit card makes more sense.\nFor example, while credit cards often have high interest rates, paying the interest on a several hundred dollar credit card balance over a few weeks is a more reasonable option than a payday loan. A $300 payday loan with a two-week payment period might cost you $45. A $300 credit card balance with a 28% annual percentage rate (APR) costs about $3 in interest over the same period. You can avoid interest charges on a credit card balance, however, by paying off your balance before the end of the card's grace period.\nIf you have good credit, you may also be able to qualify for a credit card with a promotional 0% intro APR offer.\nThe standard rate that applies to the balance that remains after the promotional period ends may be higher than what you could get with a personal loan, but you won't have to pay any origination fees. And any balance you pay off before the end of the promotional period won't accrue interest. END
 TITLE: What Are the Different Types of Personal Loans? CONTENT: How to Get a Personal Loan\n--------------------------\nYou can find personal loans from a variety of financial institutions, including banks, credit unions and online lenders. In general, you should look for the loan that has the lowest fees and interest rates (in other words, the lowest APR).\nYou can use a personal loan calculator to estimate your payments based on how much you want to borrow. However, you won't know the exact APR of your offers until after you apply.\nGetting prequalified with several lenders could help you narrow in on which one could offer you the most favorable terms. (It won't necessarily be the lender that has the lowest advertised rates.)\nOnce you check your offers and are ready to apply, many lenders have a straightforward online application process. Lenders may also ask for verification documents, such as copies of recent pay stubs. After approving your application and verifying your information, many lenders can directly deposit the loan into your bank account. It may take several days for the transfer to be completed. END
 TITLE: What Are the Different Types of Personal Loans? CONTENT: Find and Compare Your Personal Loan Offers\n------------------------------------------\nUsing Experian's CreditMatch™, you can compare personal loan offers from Experian's partners. You can also create an account and submit a prequalification application. Experian will then gather prequalified loan offers from partner lenders. You have up to 30 days to compare the offers and choose the one that works best for you. END
 TITLE: How to Get a Personal Loan Without a Credit Check CONTENT: Check Your Credit Report and Score\n----------------------------------\nBefore you rush to a lender that offers loans without requiring a credit check, it's a good idea to check your credit. If you've never done this before, you might find you have a credit report and credit score that qualifies you for a personal loan.\nYou can request free copies of your credit reports from the three consumer credit bureaus (Experian, TransUnion and Equifax) at AnnualCreditReport.com. You can also get a free FICO® Score☉ based on your Experian credit report.\nLenders don't all use the same scoring models or necessarily check all three of your credit reports, so the score you see may not be the same one that every lender uses. Still, many lenders use a FICO® Score to evaluate new credit applications, so seeing your FICO® Score can give you a good sense of where you fall in the credit score range.\nIf you don't need a loan right away, taking time to establish or improve your credit scores may make sense. If you check your FICO® Score through Experian, you'll get personalized suggestions based on your unique credit history. END
 TITLE: How to Get a Personal Loan Without a Credit Check CONTENT: Where to Get a Personal Loan With No Credit Check\n-------------------------------------------------\nSome people look for personal loans without a credit check because they have no credit. Others know they likely won't get approved if there's a credit check because they have poor credit. It's an important distinction.\nPersonal loans are often unsecured loans, meaning they don't require collateral. As a result, lenders generally want to review your financial information and credit to make sure you can afford to repay the loan and that you have a history of paying your bills on time.\nLenders that don't require a credit check often make up for this lack of information by charging borrowers high interest rates or fees.\nFor example, payday loans and high-rate installment loans might not require a credit check. Or, if you own a vehicle or valuable property, you may be able to get an auto title loan or pawn loan without a credit check. But these should be last-resort options as their high costs can make them difficult to repay, often resulting in a cycle of reborrowing at astronomical rates.\nHowever, there are increasingly new and better options for people who have no credit score. In these situations, lenders may focus on other information, such as your relationship with the company, employment history and debt-to-income ratio.\n### A Few Lower-Cost Options\nHere are a few options to explore if you want a personal loan without a credit check:\n*   Look into early payday apps to see if you can borrow money based on your income.\n*   Reach out to credit unions to see if you can get a payday alternative loan.\n*   If you have an account at a community bank or small credit union, contact the local loan officer. You may be able to get a personal loan based on your income and account history.\n*   Ask your employer if they offer loans to employees. Some companies have formal policies for employees who've been at the company for at least a few years and need a loan for an emergency expense.\n*   Some online lenders, such as Experian partner Upstart, can use alternative data. You may be asked to connect your bank account, and the lender will analyze your banking history to help determine your eligibility and loan offer.\n*   A loan from a friend or family member could also be an option. However, lending and borrowing money can lead to strained, and sometimes ruined, relationships. If you go that route, make sure to get your agreement in writing and stick to the repayment terms you agree on.\nMany of these options don't require good credit—or any credit at all—but the lender may try to check your credit. In some cases, having no credit may be better than having poor credit. END
 TITLE: How to Get a Personal Loan Without a Credit Check CONTENT: How to Apply for a Personal Loan\n--------------------------------\nThe application process for a personal loan can vary depending on the lender and the type of loan. Some lenders have streamlined online applications with step-by-step instructions you can follow. With others, your best option may be to call or visit a local branch and speak to a loan officer.\nWhile there might not be a credit check, you may still have to prove your identity and income, and provide other documentation. When preparing to apply for a personal loan, you may want to gather:\n*   A copy of a valid government-issued photo identification\n*   Recent pay stubs or other proof of income, such as recent tax returns\n*   Your employment history and contact information for your employers\n*   Recent bank statements\n*   Education history\n*   Personal and professional references END
 TITLE: How to Get a Personal Loan Without a Credit Check CONTENT: How to Establish Credit When You Have No Credit History\n-------------------------------------------------------\nIf you don't have a credit history, establishing your credit and building a good credit could be helpful. Even if you don't want to take out a loan or get a credit card, good credit can make it easier to rent an apartment or get a job. In many states, your insurance premiums may also be impacted by your credit history.\nTo get started, you'll need your accounts and payments to be reported to the consumer credit bureaus. Many people use one—or several—of the following approaches:\n*   Open a secured credit card.\n*   Take out a credit-builder loan, lending circle loan or peer-to-peer loan.\n*   Become an authorized user on a trusted friend or family member's credit card.\n*   Apply for a credit card that doesn't require a credit check.\n*   Sign up for a rent reporting service.\nOnce you've established your credit, be sure to manage your accounts to build good credit. Making all your debt payments on time and only using a small portion of your credit limit on credit cards are important ways to improve credit scores. END
 TITLE: How to Get a Personal Loan Without a Credit Check CONTENT: Build Your Credit and Get Personal Loan Offers\n----------------------------------------------\nOnce you've established credit, you can also use the features and tools in a free Experian account to build, monitor and use your credit.\nExperian Boost™† is a free app that you can use to connect your bank account and add utility, phone and popular streaming service bills to your Experian credit report. These extra accounts and on-time payments can also help improve your credit or make your credit report scoreable if you don't yet have a score.\nYour Experian account also comes with free credit monitoring and a free FICO® Score based on your Experian report. If you want to put your credit to use, you can use Experian CreditMatchTM to compare credit card and loan offers. In some states, you can also receive personalized offers based on your credit profile. END
 TITLE: What Is the Prime Rate? CONTENT: The prime rate was 3.25% at the time this article was published, according to the Federal Reserve.\nWhen you apply for a credit card or loan, the card issuer or lender will decide the interest rate you pay based on your creditworthiness, the prime rate and other factors. If you have good credit and meet the minimum qualification criteria, you're more likely to qualify for a low interest rate. The best interest rates available are reserved for the most creditworthy applicants with excellent credit scores.\nYou typically won't receive an interest rate that exactly matches the prime rate when applying for a credit card or fixed-rate loan product, though. Lenders use this percentage as a baseline, which means it significantly impacts the APR or interest rate you'll ultimately receive. END
 TITLE: What Is the Prime Rate? CONTENT: How Is the Prime Rate Determined?\n---------------------------------\nThe Federal Reserve doesn't determine the prime rate directly. Instead, it is set by individual banks with influence from what's known as the federal funds target rate, which is the target for the interest rate banks charge each other for short-term loans. The target rate is established by a team of 12 Fed members referred to as the Federal Open Market Committee. The Federal Reserve can adjust its monetary policy to encourage interest rates to stay within this target range.\nBanks generally add 3% to the federal funds target rate when setting the prime rate for their customers. With the current federal funds target set at 0% to 0.25%, it follows that the current prime rate is 3.25%. END
 TITLE: What Is the Prime Rate? CONTENT: What Does the Prime Rate Affect?\n--------------------------------\nThe prime rate affects nearly all credit products with interest. Anytime the federal funds target rate is changed, the prime rate will generally follow suit. But the extent of the impact depends on whether the financial product in question has a variable or fixed interest rate.\nCredit card issuers charge an interest rate that is well above the prime rate, with the average interest rate on credit cards 16.3% as of May 2021. Most credit cards have a variable rate, and cardholders are assessed a rate based on their creditworthiness. So, if the available rates are between 9.99% and 24.99%, the best-qualified consumers could nab a 9.99% interest rate. On the other hand, applicants with lower scores could receive the 24.99% rate.\nIf the federal funds target rate is adjusted, your credit card's annual percentage rate (APR) could trend in the same direction. These updates are usually reflected on your credit card statement within two billing cycles.\nLoan products with fixed interest rates, including personal loans, auto loans and fixed-rate mortgages, aren't impacted by changing rates in the same way. If you have existing fixed-rate debt, you won't experience interest rate fluctuations if rates change. The interest rate you received when you were approved for the loan will remain intact until you pay the balance in full. Prime rate could still influence the interest rate you receive when you apply for a new, fixed-interest loan product, however.\nLoan products with variable rates, like home equity lines of credit (HELOCs) and adjustable-rate mortgages, are heavily impacted when the prime rate changes. As the rate rises, mortgage payments can increase and vice versa. If the changes are drastic, refinancing your home loan could become a viable option to make your monthly mortgage payments more affordable. END
 TITLE: What Is the Prime Rate? CONTENT: Why the Prime Rate Matters to You\n---------------------------------\nAny changes to the federal funds rate could impact your APR on credit cards and other variable interest rate debt. You could also receive a higher rate when you apply for a fixed-rate loan product, even if you have good or excellent credit.\nWhile you have no control over the prime rate, you can position yourself for the best rate on credit products by boosting your credit health. You can get your Experian credit report and FICO® Score☉ based on Experian data for free to know where you stand and identify areas of your credit profile that need improvement.\nIt's free to sign up and only takes a few minutes of your time. You will also get credit monitoring and alerts anytime activity takes place in your credit file. END
 TITLE: What’s the Difference Between Money Market Accounts, CDs and Savings Accounts? CONTENT: A savings account at a bank, credit union or other financial institution gives you a place to park money you plan to use for short-term needs, such as paying for a wedding or making a car down payment, or establishing an emergency fund you can access easily.\nMoney deposited in a traditional savings account earns interest, but not much. As of January 2021, the average interest rate (known as annual percentage yield, or APY) for a U.S. savings account was only 0.05% for a balance below $100,000, according to the Federal Deposit Insurance Corp. (FDIC). A yield of 0.05% would earn you just $2.50 per year on a $5,000 balance.\nA high-yield savings account, often provided by online banks, can deliver an APY that's higher than a traditional savings account. But if you open a high-yield savings account at an online bank, be sure you're comfortable with the possibility that you may lack easy access to branches or ATMs.\nThe FDIC insures savings up to $250,000 per account holder at federally insured banks. If a bank fails and your savings account has less than $250,000 in it, the FDIC guarantees your money will be protected. If the savings account is at a credit union, the National Credit Union Administration (NCUA) insures the money under the same guidelines.\nKeep in mind that a savings account is restricted to six withdrawals per month—a limit not imposed on checking accounts. If you exceed the six-withdrawal threshold, your savings account may be switched to a checking account. After the coronavirus outbreak was declared a pandemic in March 2020, the Federal Reserve temporarily suspended the six-withdrawals-per-month limit. END
 TITLE: What’s the Difference Between Money Market Accounts, CDs and Savings Accounts? CONTENT: Money Market Accounts\n---------------------\nAs with a savings account, a money market account is insured by the FDIC or NCUA, and it has withdrawal limits.\nHowever, a money market account generally offers a higher APY than a traditional savings account. That's because cash in a money market account is invested in the financial markets. As of January 2021, the average interest rate for a money market account was 0.07% for a balance below $100,000 (compared with 0.05% for a savings account).\nUnlike a savings account, you may be able to write checks with a money market account. END
 TITLE: What’s the Difference Between Money Market Accounts, CDs and Savings Accounts? CONTENT: Certificates of Deposit\n-----------------------\nCDs, available from banks and credit unions, are deposit accounts like savings and money market accounts, but there are key differences. When you purchase a CD, a minimum deposit is required. Furthermore, you're not allowed to withdraw money from a CD before a certain period of time expires, such as six months or two years. Otherwise, you'll be hit with a financial penalty.\nAnother disadvantage: You can't use a check, ATM or electronic transfer to access your money.\nThat said, CDs typically provide higher interest rates than savings accounts and sometimes money market accounts. For instance, the average APY for a six-month CD with a balance below $100,000 was 0.10% as of January 21, 2021. The average APY for a 60-month CD was 0.32%. In most cases, the interest rate for a CD doesn't change while the account is open, which is a big perk if you open it before rates are cut.\nOnce the CD's term ends, you can withdraw the money or roll it over to a new CD.\nThe FDIC and NCUA insure CDs up to the same $250,000 limit (per institution and type of account) as savings and money market accounts. END
 TITLE: What’s the Difference Between Money Market Accounts, CDs and Savings Accounts? CONTENT: How to Choose the Right Account for Your Needs\n----------------------------------------------\nSavings account, money market account or CD—which one should you pick?\nA savings account might be a good option if you have a relatively small amount of money and aren't itching to earn a more competitive interest rate. It also might be a smart choice when you want to be able to use an ATM card or electronic transfer to access your cash.\nIf you've got a bigger stash of cash and you want to be able to access it easily, a money market account may be the way to go. You typically earn a higher interest rate with a money market account compared with a savings account. But you may need to stay above minimum balance requirements to avoid fees. And, just as with a savings account, the number of withdrawals per month may be limited.\nTo earn a potentially higher interest rate than a savings or money market account, you might park your money in a CD. But unless you keep your money in a CD for the prescribed amount of time, such as six months or 60 months, you may face a financial penalty that could erase the interest you've collected. END
 TITLE: What’s the Difference Between Money Market Accounts, CDs and Savings Accounts? CONTENT: Alternative Places to Grow Your Money\n-------------------------------------\nWhen you're selecting a spot to put your money—particularly for the long term—a savings account, money market account or CD may not be the right option. Fortunately, alternatives are available, including a 401(k), an individual retirement account (IRA) and individual stocks. END
 TITLE: How Long Should You Keep Bank Statements? CONTENT: Keep Bank and Credit Card Statements for One Year\n-------------------------------------------------\nHaving all of your statements available when you prepare your taxes will help you confirm income and track deductible expenses accurately.\nThis holds true whether you receive statements by mail or electronically. If you choose paperless statements, you can access them online, possibly going back months or years if your bank or credit card issuer keeps them available. Alternatively, you may download and store your statements in a password-protected file or print them out. Either way, you'll be able to access them for as long as you decide to keep them.\nIf you've used any statements to help calculate your taxes, save them—along with your tax return—for at least seven years, in case the IRS has any questions. See Experian's guide to storing financial documents for tips on how to maintain them safely and securely. END
 TITLE: How Long Should You Keep Bank Statements? CONTENT: Why Can It Be a Good Idea to Keep Bank Statements?\n--------------------------------------------------\nBank, credit card and investment account statements provide a wealth of information when you're filing your taxes. Use your statements to do the following:\n*   Document payroll deposits, which you can check against the income listed on your W-2.\n*   Verify 1099 income if you do occasional work as an independent contractor or have your own business.\n*   Track mortgage payments, student loan and tuition information, and charitable donations.\n*   Detail investment income and losses as well as retirement account contributions or distributions.\n*   Record business expenses, if any.\nIn addition to reviewing your statements annually at tax time, you should go over them monthly throughout the year. Although you may check your transactions frequently online or by mobile app, your monthly statement is a full accounting of your activity and may show transactions you've previously overlooked. Look for errors: Double-check that your expected deposits have been credited and that there are no unfamiliar or incorrect transactions that might indicate fraud.\nIf you find an inconsistency or evidence of suspected fraud, contact your bank or card company immediately and make a report. Hang on to any relevant statements until the issue is fully resolved. END
 TITLE: How Long Should You Keep Bank Statements? CONTENT: How Long Do You Need to Keep Other Financial Documents?\n-------------------------------------------------------\nOther documents related to your bank, credit card and investment accounts abound. Here are a few types and how long to consider saving them:\n**Save until reconciled with your monthly\/quarterly statement**:\n*   ATM receipts\n*   Deposit and withdrawal slips\n*   Investment transaction records\n*   Credit and debit card receipts\n**Save for tax time and\/or until reconciled with annual tax reporting documents**:\n*   Monthly\/quarterly checking, savings, credit card and investment statements\n*   Mortgage statements\n**Download and\/or save paper copies with your tax returns**:\n*   1098 showing annual mortgage interest paid\n*   Schedule K-1 forms for income, payments and losses on investments\n*   1099-INT for interest paid to you\n*   Form 5498 for retirement account contributions and 1099-R for distributions\n**Keep copies in your files while active**:\n*   Contracts\n*   Stock certificates and records\n*   Disputed bills and supporting receipts, statements and communications END
 TITLE: How Long Should You Keep Bank Statements? CONTENT: Is It Necessary to Keep Your Financial Statements?\n--------------------------------------------------\nIt's possible to access past statements without keeping copies yourself, but you may choose to keep your own statements on file anyway. Your financial institution stores information in their system for multiple years, and may be able to provide you with copies of older statements on request. You can also request past copies of the statements you normally receive by mail, sometimes for a fee, by contacting your bank or card company.\nThe length of time your financial institution will store these records—and make them available to you—varies, so it's a good idea to do a little research on your bank's policy. Some card companies only provide online statements for the previous 12 months, for example; you may have to do extra legwork or pay for missing statements and wait a few days or weeks to get anything beyond that.\nSome banks, including Wells Fargo, retain account statements for up to seven years on checking, deposit, home mortgage, trust and managed investment accounts. At other financial institutions, five years is the norm.\nIf you've used your financial statements to back up information on your tax returns, you may want to keep your own paper or digital copies, rather than relying on the bank to do it. That way, you can ensure that you have these documents on hand for a full seven years. And at any time, you'll be able to access and refer to this information without having to track it down online.\nWhen you no longer need your documents, be sure to shred the paper files and completely delete the electronic copies (including any backups). Free software for Windows and Mac computers can help make sure these files can't later be recovered by someone up to no good. END
 TITLE: How Long Should You Keep Bank Statements? CONTENT: Maintaining a Paper Trail\n-------------------------\nThe bank and credit card statements you receive provide concise and comprehensive information about what's happening with your accounts. It can also be key supporting documentation to prove yourself if your finances are ever called into question.\nReviewing statements can help you spot fraud and other irregularities, such as an unusually high bill. Keep them as long as needed to help with tax preparation or fraud\/dispute resolution. And maintain files securely for at least seven years if you've used your statements to support information you've included in your tax return. END
 TITLE: How Much Should You Save Each Month? CONTENT: Americans on average have been saving between 7% and 8% of their monthly income in recent years, but that doesn't mean that percentage is right for you. As noted above, your savings target will depend on your particular financial profile. Your savings goal could be more or less than the national average once you calculate those numbers.\nFor instance, you may find that your monthly budget doesn't allow for 7% savings and that you have to aim for saving 2% of your income instead. That's not a problem. The important thing is to establish a savings habit. You can always increase your monthly goal as you pay down debt or earn more money.\nOne thing to consider is what you're saving _for_. Rather than thinking of your savings as a lump sum that sits in a bank or investment account, it can help to save with specific goals in mind. For example, you might want to save for a house, a wedding or a general rainy day fund. In each case, you'll likely have a specific amount of money you need to save to achieve these goals, and figuring that out ahead of time can help you determine how much to save each month.\nYou may also be thinking about retirement and whether you'll have enough money to live on when you leave the workforce. Experts offer a few different takes on how far along your retirement savings should be at different points in your life. One view says that by age 30, you should have set aside the equivalent of one year's salary in retirement savings. Others take a less aggressive approach and suggest saving half your annual income in a retirement account by age 30.\nBut no matter where you are with your retirement savings, it's never too late to start. What matters is that you create a savings plan that works for you and that you can maintain month to month. END
 TITLE: How Much Should You Save Each Month? CONTENT: Why You Need an Emergency Fund\n------------------------------\nAn emergency fund is there for life's unexpected events. If you suddenly lose your job, it helps to have a few months' worth of expenses covered in a savings account so you don't have to worry about your ability to pay your bills while you look for work. If you get sick, an emergency savings fund can help you cover out-of-pocket expenses without taking on debt. If your car's transmission dies and you have to replace it, having an emergency fund could make that situation a bit less painful.\nYour emergency fund can give you the space to think through a difficult financial situation and make smart long-term decisions, since you'll be less panicked about how to afford a given expense.\nThe rule of thumb with emergency funds is to set enough aside to cover three to six months of expenses. You can build the emergency fund over time by putting a portion of your income into it each month.\nYou can calculate your emergency fund goal by adding up all of your essential monthly expenses, including:\n*   Rent or mortgage payments\n*   Utilities payments\n*   Groceries\n*   Gas or public transportation expenses\n*   Monthly minimum debt payments\nBe sure to add any other essentials you pay for on a recurring basis, such as medical prescriptions or other non-negotiables, like your car registration. Once you've tallied those costs, multiply them by three or six to get your emergency savings target.\nAgain, try not to be discouraged by the total number. Work toward your overall goal incrementally rather than stressing about fully funding it right away. If you come into a sudden windfall, such as a bonus or big commission at work, consider putting that into your emergency fund to speed up the funding process. When you withdraw money for emergency expenses, make a plan to replenish the fund once your finances are stable again. END
 TITLE: How Much Should You Save Each Month? CONTENT: How Budgeting Can Help You Save Every Month\n-------------------------------------------\nOne of the best steps you can take toward building your savings is to create a budget. Budgets can help you live within your means and make it easier to stay disciplined in making contributions to long-term goals. Putting a budget down on paper lets you see how much money you're bringing in, how much is going out and what kind of progress you're making on your savings.\nWhen you list your monthly expenses, you might be surprised by the amount you're spending and the things you're spending your money on. Perhaps you're being charged for a recurring subscription or streaming service you don't use often. Maybe you spend more on groceries every month than you realized. Spotting these types of costs can make it easy to trim your budget and free up extra cash to put into savings.\nThe good news is, budgeting can be quite simple. There are many ways to budget, and you can track expenses in an app, spreadsheet or on a plain old piece of paper. Here's how to get started:\n1.  Figure out your monthly income. This includes your regular paycheck and any side gig income.\n2.  Add up your expenses. List everything you buy or pay for in a month, including rent, groceries, movies, games, bills, medicines—anything that comes up regularly.\n3.  Set savings goals. Look at how much you have left over after your expenses and see how you could set that aside for savings goals. Decide how much to put toward each savings category, and set it aside. If you don't think you'll be able to reach your goals, or you don't have any money left over, look at reducing your expenses or increasing your income.\n4.  Track your expenses and check your budget each month. Setting a budget is one thing, but it won't do you much good unless you stick to it. If you exceed your budget limits, adjust your spending or reassess your goals to make sure they're realistic. Also review your savings deposits and see whether you hit your goals. If need be, adjust your budget for the next four weeks, cutting unnecessary categories and putting more money toward debts or savings.\nIf you're looking for a framework to get started, you might consider budgeting using the 50\/30\/20 method. Here's what it looks like:\n*   50% of your income is set aside for essential expenses, such as rent or mortgage, utilities, groceries and debt payments.\n*   30% goes to discretionary expenses, such as take-away meals, streaming subscriptions and other entertainment.\n*   20% goes to your debt payments and savings for things like buying a home, retirement and building your emergency fund.\nYou can adjust the formula to suit your budget and your financial priorities. If you want to pay down high-interest credit card debt or student loans faster, you might cut down on entertainment spending to set more than 20% of your income aside for that. Or, you might not put as much into savings. It will take you longer to reach your goals, but you'll likely save money on interest by paying down your debts as quickly as possible. END
 TITLE: How Much Should You Save Each Month? CONTENT: Ways to Save Every Month\n------------------------\nThere are a number of ways you can save money each month, even if you're just getting started with budgeting.\n1.  Skip takeout. Cooking meals at home costs less than ordering from restaurants, and it can be just as enjoyable. Cooking at home also reduces the chance that perishable groceries, such as fruits and vegetables, will go bad before you use them so you're less likely to have wasted money on those items.\n2.  Consolidate your credit card debt. If you have several high-interest credit cards, your balances could be growing rapidly. Consolidating all of your credit card debt onto one lower-interest credit card or through a lower-interest personal loan allows you to pay off existing debt and focus on making one payment each month while also saving on interest.\n3.  Pay for everything with cash. You don't need to close your credit card accounts—in fact, keeping them open can help your credit score if they help your credit utilization ratio and length of credit history. But paying for goods and services with cash or debit may make you more aware of how much you're spending, since the money comes out of your checking account right away. There's also a natural limitation built in because once you run out of cash, you have to stop spending. Just be sure you carefully monitor your balance to avoid an overdraft.\n4.  Buy secondhand. Purchasing clothes, shoes and even electronics secondhand can help you save a lot of money. If you search online marketplaces, you may even find seller ratings so you know whether the person you're buying from is legitimate and that the products are likely to be good quality.\n5.  Negotiate your bills. If your monthly cable, internet or cell service bills are high, try calling your provider. They may be willing to offer you discounts or special packages that will give you a lower rate, decreasing your monthly expenses.\nShifting a few spending habits and seeking out deals may have a significant impact on your budget. As you find ways to free up more cash, you can adjust your savings targets to set more aside. END
 TITLE: How Much Should You Save Each Month? CONTENT: What Should You Do With Your Savings?\n-------------------------------------\nIf you don't yet have emergency savings, funding that account will likely be your highest priority. You might consider keeping your emergency fund in a high-yield savings account, which will allow you to earn interest on your balance. This can be a solid way to increase your savings simply by leaving money in the account as long as possible.\nAfter you've established your emergency fund, you may want to focus on any outstanding high-interest debt. Allowing interest to accrue on your debts may cancel out your savings if you're carrying high balances, so that is a good next step.\nBig-picture savings goals to consider include saving for a down payment on a home or funding retirement accounts. Depending on the types of retirement accounts you open, you may be able to automatically have contributions withdrawn from your paycheck each month. You won't have to remember to make the transfers yourself, but you'll know that you are steadily moving toward your goals.\nIf your employer offers a 401(k) plan, that's a great place to begin saving for retirement, especially if they will match your monthly contributions. However, you have a wide variety of options for saving for retirement, including individual retirement accounts (IRAs) and other investment programs. END
 TITLE: How to Save Money on Back-to-School Shopping CONTENT: 1\\. Make a Budget\n-----------------\nFirst things first: Map out your budget for back-to-school shopping. If you know what you spent last year, see how much money went to different categories of school supplies, such as basics (notebooks, pens, etc.), art supplies and clothing. If you don't know what you spent, list out all the items you think you'll need and estimate how much you think you may spend. (Alternatively, your school may provide online lists of required supplies.) You can do a quick online search to find a range of costs for supplies to get a preliminary idea.\nThen determine how much you have to spend. Whether pulling from savings (though not your emergency fund) or carving out a chunk of your monthly income, determine how much you can comfortably afford to put toward school supplies. If you've already been setting aside money specifically for school shopping, all the better: Note that amount. END
 TITLE: How to Save Money on Back-to-School Shopping CONTENT: 2\\. Take Inventory\n------------------\nOnce you have your budget, take stock of what you already have at home. Check for pens and pencils, a backpack that can be washed and reused, paper and more to assemble and check off as many boxes on your supplies list as possible before you hit the stores. END
 TITLE: How to Save Money on Back-to-School Shopping CONTENT: 3\\. Compare Prices\n------------------\nWith your budget mapped out and your home inventory sorted, the time has come to start buying. But before you rush off to the closest office supply store or big box retailer and fill your cart, do a little homework to compare prices. Luckily, you can utilize a variety of web-based assistance to home in on the best prices. Try scanning barcodes with the ShopSavvy app to find superior bargains item-by-item. Note which stores will price match if you discover a better deal elsewhere, and you may not even need to leave the store to secure the lower price. For online shopping, you can install the [Honey](;utm_medium=sem&utm_campaign=GOOG_US_200603_Brand_All_All_Brand-Pure_ETA_DR-US-Simplified-Yellow-General&utm_content=DR-US-Simplified-Yellow-General&gclid=CjwKCAjw9aiIBhA1EiwAJ_GTSoQHGt8a8qc7SevK1BH2cjX9ysrNUaYT-Am3izr1Q1PpbaOl254t6hoCUBwQAvD_BwE&from=r) browser extension to your internet browser to automatically run price comparisons while you fill your virtual cart. END
 TITLE: How to Save Money on Back-to-School Shopping CONTENT: 4\\. Use Coupons and Stacked Discounts\n-------------------------------------\nTraditional coupon-clipping is not obsolete—you can still unearth good deals in local newspapers and catalogs, so don't neglect your mailbox this season. However, you can also find a goldmine of coupons and discounts offered online. Double-check big stores' social media feeds for extra deals before you walk out the door, and use apps and browser extensions to apply virtual coupons. Both [Ibotta](;utm_medium=cpc&utm_campaign=IbottaSearchBrandExact&utm_content=BrandExact&utm_term=ibotta&gclid=CjwKCAjw9aiIBhA1EiwAJ_GTSkL-enTYQ0ikU4rDNRIzja_R2BBGoH2np6kuQgmNiMTPAL70q-m6sBoC4EEQAvD_BwE) and Rakuten (formerly known as Ebates) can find the best prices and award you with cash back on your spending. END
 TITLE: How to Save Money on Back-to-School Shopping CONTENT: 5\\. Buy in Bulk\n---------------\nHere's the key to buying school supplies in bulk: Check the price per unit. Whether you have multiple kids to split that pack of glue sticks among or you're purchasing an item you expect to need more of in the future, a lower price per unit means you get a better deal than if you were to buy multiple smaller packs of the same item. END
 TITLE: How to Save Money on Back-to-School Shopping CONTENT: 6\\. Choose Your Stores\n----------------------\nPick your battles when it comes to certain items. You or your child might be particular when it comes to, say, store-brand notebooks or a specific brand of markers your child can't live without—but don't get too comfortable with the convenience of shopping in just one store. If you can buy acceptable, functioning pens at your local discount store for a bargain, go for it.\nAlso think about places where you have extra saving potential. For example, Target's rewards program earns you 1% just for having a Target.com account, but you can add their RedCard™ to save 5% on your purchases—even on already-discounted prices. END
 TITLE: How to Save Money on Back-to-School Shopping CONTENT: 7\\. Save on School Clothes\n--------------------------\nConsignment shops, thrift stores and garage sales are ideal spots to look for bargains on backpacks and clothes for the back-to-school season. You can also use school clothes shopping as a learning opportunity: Give your kids their own budget to buy school clothes and let them make their own choices at the store. For uniformed students, donate your used pieces and score new ones at your local uniform exchange. END
 TITLE: How to Save Money on Back-to-School Shopping CONTENT: 8\\. Use Your Student Status\n---------------------------\nIn college? Try to resell last year's books and dorm accessories and use the revenue to cover some of this year's costs. Or, help fellow students with a site like Stuvia, which pays you commission for selling your study documents. Whether you make $20 or $200, it's more profitable than tossing last semester's notes into the trash. And don't forget to flash your student ID card for added savings on memberships and merchandise whenever offered. END
 TITLE: How to Save Money on Back-to-School Shopping CONTENT: 9\\. Spread Out Your Purchases\n-----------------------------\nIf you're worried your budget won't cover all the items your child needs for the school year, consider breaking up your back-to-school shopping. For example, while a backpack and required books may be essentials before school starts, you can probably put off a winter coat purchase for a couple months. END
 TITLE: How to Save Money on Back-to-School Shopping CONTENT: 10\\. Pay With Rewards Credit Cards\n----------------------------------\nBack-to-school shopping is the perfect opportunity to take advantage of your rewards credit cards. You can simultaneously stock up on school supplies while you sack away extra travel miles, cash back or points just for swiping. Just don't let earning rewards be an excuse to spend more than you can pay off quickly, or you might end up losing money on steep interest charges. If you have cash set aside as part of your school supplies budget, you can use your rewards card to make the purchases, then pay off the charges right away. END
 TITLE: How to Save Money on Back-to-School Shopping CONTENT: The Bottom Line\n---------------\nEven with possibly temporary inflation supercharging prices, back-to-school necessities don't need to overwhelm your wallet. Try to approach your budget and shopping trips with a lot of preparation (and a few coupons), and you can help prepare your children for a successful year of learning. END
 TITLE: How Much You Should Have Saved for Retirement by Age CONTENT: How Much Money You Should Have Saved at Every Age\n-------------------------------------------------\nFirst, it can be useful to get an overall picture of what's ideal when it comes to retirement savings goals.\nExperts have various approaches to the common question of how much to save for retirement in total. Investment firm Fidelity recommends saving enough to cover 45% of your gross preretirement income per year, since the rest of your income in retirement will likely come from Social Security.\nThat means if you earn $50,000 per year right now, plan to save enough by retirement age to cover $22,500 in expenses each year you're retired. Many elements can affect this calculation, including the age you plan to retire and the kind of lifestyle you want after your working years.\nIt's also often difficult to plan using raw numbers, since your income and standard of living may fluctuate over your lifetime. Fidelity has created savings guidelines that track your income, rather than a total savings goal, so that you can identify retirement readiness decade by decade. Here are Fidelity's recommendations:\n*   **By age 30:** Have the equivalent of your current annual salary saved. If you earn $50,000, you should have $50,000 saved for retirement at this age.\n*   **By age 40:** Have three times your annual salary saved. If you earn $50,000, you should plan to have $150,000 saved for retirement by 40.\n*   **By age 50:** Have six times your annual salary saved.\n*   **By age 60:** Have eight times your annual salary saved.\n*   **By age 67:** Have 10 times your annual salary saved. END
 TITLE: How Much You Should Have Saved for Retirement by Age CONTENT: What to Consider When Saving for Retirement\n-------------------------------------------\nGuidelines can be convenient for planning purposes, but the reality of saving for retirement will change substantially from person to person.\nFor example, if your spouse is 10 years older than you are, you may stop working full time sooner so you can join them in retirement. If your spouse doesn't earn income from work, you may need to save more to ensure a comfortable retirement for both of you. You may be in good health and enjoy working, which could mean you'll retire later than the typical retirement age of 67. Or you may plan to substantially reduce or increase your standard of living in retirement, which affects the amount you should save now.\nMany factors, including your health, the strength of the economy and your employment situation, are largely out of your control. That means you can do your best to save and still feel behind compared with where you'd prefer to be. However, it's possible to increase your savings rate if necessary, and to get help from experts if you need it, such as a financial planner or a nonprofit credit counselor. END
 TITLE: How Much You Should Have Saved for Retirement by Age CONTENT: How to Save for Retirement\n--------------------------\nFidelity's saving recommendations assume that an individual has saved 15% of their annual income every year since age 25 and that they invest 50% of their retirement savings in stocks.\nStarting to save for retirement as early as possible will allow you to take greater advantage of compounding. Compounding allows you to earn investment returns on not only your contributions but on your previous returns as well. Investing in stocks rather than only in low-risk, low-reward investments like cash and bonds allows for investment returns that, historically, average about 10% per year (about 7% after adjusting for inflation).\nThe type of investment account you can use to save for retirement often depends on whether you're employed by a company that offers a workplace retirement plan. But anyone can, and should, save for retirement, no matter their employment arrangement. Here are your options:\n*   **401(k)**: This type of plan is sponsored by an employer and allows you to contribute to a retirement account directly from your paycheck. Since contributions are made before they're taxed, traditional 401(k)s require you to pay income tax when you make withdrawals in retirement. With a Roth 401(k), however, you make contributions with money that's already been taxed and can withdraw it tax-free. Many companies offer to match employee contributions to a 401(k) up to a percentage of the employee's annual earnings. Small businesses can offer their own version, called a SIMPLE 401(k) plan, to their employees, and self-employed people can open a Solo 401(k). You can start taking 401(k) withdrawals penalty-free at age 59½, or at age 55 under certain circumstances.\n*   **Individual retirement account (IRA)**: If you don't have access to a 401(k), or you want to save extra for retirement, you can open an IRA. These also come in traditional and Roth versions, and the income qualifications and tax treatment differ between the plan types. Like with the different types of 401(k), Roth IRAs are funded with post-tax income and traditional IRAs are taxed upon withdrawal. A Self-Employed Pension (SEP) IRA is available to freelancers, the self-employed and sole proprietors, and a SIMPLE IRA is available to small businesses.\n*   **Other investment accounts**: Once you're working toward saving for retirement with a 401(k) or IRA, you can also invest in a brokerage account—potentially with a robo-advisor or the help of a financial planning firm. Compared with dedicated retirement accounts, investing in a non-retirement brokerage account can let you skip certain restrictions on how much you can contribute and when you can withdraw money for retirement. Your money is still subject tax treatment by the IRS, including capital gains tax. END
 TITLE: How Much You Should Have Saved for Retirement by Age CONTENT: Planning for Retirement by Age\n------------------------------\nThe most important element of retirement saving is making and executing on your plan as early as possible. Over the years, your needs, priorities and preferences will shift. But setting a solid foundation and sticking closely to experts' guidelines will give you the security of knowing you're on pace for a retirement you can look forward to. As you take action to plan out your retirement, it's also important to keep an eye on your credit. A flush retirement account will open up opportunities for you in retirement, and robust credit can help you attain goals throughout your life. END
 TITLE: Should I Have Multiple Bank Accounts? CONTENT: Types of Bank Accounts\n----------------------\nHere are the different types of bank accounts you can have:\n*   **Checking account**: This is a standard bank account that you can use for everyday money management. You can pay bills, write checks, receive direct deposits and make purchases using your debit card. Checking accounts typically don't offer interest, but some do.  \n*   **Savings account**: A standard savings account doesn't offer a high interest rate, but it can be a great place to stash your emergency savings, as well as savings for short-term financial goals.\n*   **High-yield savings account**: A high-yield savings account provides the same safety and liquidity as a standard savings account, but it offers a higher interest rate.\n*   **Money market account**: Money market accounts act as a hybrid between a checking account and a savings account. You can often get a higher interest rate than a standard checking or savings account with a money market account, and you'll also get the ability to write checks and sometimes even use a debit card tied to the account.\n*   **Certificate of deposit**: A certificate of deposit, or CD for short, often offers a high interest rate in exchange for committing your funds for a set period, which can range from a few months to several years. They don't always offer higher rates than high-yield savings accounts, though, and many charge fees if you withdraw your money before the account's maturity date.\nBe aware, though, that your bank may not offer all of these types of accounts. For example, some large institutions do not currently offer high-yield savings accounts.\nBenefits of Multiple Bank Accounts\n----------------------------------\n*   **Different accounts for different purposes**: While a checking account is great for everyday money management, it's not as well-suited to saving for the future as a savings account. All savings accounts pay interest (though currently at very low rates) and only allow six withdrawals per month, making them better for parking your money but not a practical choice for everyday expenses.\n*   **Higher interest rates**: High-yield savings and money market accounts can offer higher interest rates than checking accounts and traditional savings accounts. If your bank or credit union doesn't offer a high-yield savings product, it could make sense to open such an account with a different financial institution.\n*   **Take advantage of different benefits**: In some cases, it may make sense to have more than one checking account or savings account. That way, you can take advantage of the benefits each one provides without missing out on any of them.\n*   **More FDIC insurance**: The Federal Deposit Insurance Corporation (FDIC) insures up to $250,000 per bank, per depositor, per ownership category. If you're in the fortunate position to have more than that in the bank, getting an account with another bank increases the total amount of insurance protection you receive. For example, keep $500,000 in one checking account and only half of it's insured, but transfer half of it to a checking account with another bank, and the full amount is covered in the event that both banks fail.\nDrawbacks of Multiple Bank Accounts\n-----------------------------------\n*   **Minimum balance requirements**: Some banks and credit unions require that you keep a certain amount in your account to keep the account open or to avoid a monthly fee. If you don't have enough money to spread out across multiple accounts, it may not be worth the hassle.  \n*   **Fees**: It's possible to find several bank accounts that don't charge monthly fees, but if you decide to choose banks or credit unions that charge them, it can get expensive fast.\n*   **Organization**: It's important to stay organized if you have more than one bank account. It'll be harder to keep track of your money if you have to log in to multiple online accounts to check your transactions. Forget about a recurring payment, for instance, and you may accidentally overdraw your account and get slapped with a fee.\nHow Many Bank Accounts Should You Have?\n---------------------------------------\nHaving multiple bank accounts can be beneficial, but how many you decide to have depends on your situation and goals. At the very minimum, it's a good idea to have at least one checking and one savings account.\nBeyond that, consider your money management goals. If you have several short-term savings goals, such as building an emergency fund and saving for a down payment on a house, consider opening a savings account for each one to make it easier to track your progress.\nIf you like the benefits that a particular online checking account provides but you also want to be able to make cash deposits, you may be out of luck since many online banks don't offer that option. Getting an additional account with a traditional bank or credit union can give you that ability.\nTake your time to consider your situation, your preferences and your goals to determine how many bank accounts are right for you.  \nDo Bank Accounts Impact Your Credit Score?\n------------------------------------------\nIn general, bank accounts don't affect your credit score, and they don't show up on your credit report. One exception is a charged-off account: If you have a negative balance on a checking account and never pay back what you owe, the bank may report it to the credit reporting agencies.\nYour bank accounts do show up on your ChexSystems report, which is a consumer report for your banking activity. Banks and credit unions will review your ChexSystems report when you apply for a bank account, and if you've had negative items on past accounts, it can make it difficult to get approved for a new one.  \nUse Financial Tools to Improve Money Management\n-----------------------------------------------\nIf you're planning to use multiple bank accounts, consider using a budgeting tool like Mint or You Need a Budget to keep track of all of them more easily. These tools use direct import software to update all of your transactions in one place.\nAdditionally, consider using a credit monitoring service to help keep track of your credit score. With Experian, for example, you'll get free access to your Experian credit report, your FICO® Score☉ and real-time alerts when certain changes are made to your report.\nTools like these make it easier to keep track of your finances without requiring a lot of time and effort on your part. END
 TITLE: Should I Have Multiple Bank Accounts? CONTENT: Benefits of Multiple Bank Accounts\n----------------------------------\n*   **Different accounts for different purposes**: While a checking account is great for everyday money management, it's not as well-suited to saving for the future as a savings account. All savings accounts pay interest (though currently at very low rates) and only allow six withdrawals per month, making them better for parking your money but not a practical choice for everyday expenses.\n*   **Higher interest rates**: High-yield savings and money market accounts can offer higher interest rates than checking accounts and traditional savings accounts. If your bank or credit union doesn't offer a high-yield savings product, it could make sense to open such an account with a different financial institution.\n*   **Take advantage of different benefits**: In some cases, it may make sense to have more than one checking account or savings account. That way, you can take advantage of the benefits each one provides without missing out on any of them.\n*   **More FDIC insurance**: The Federal Deposit Insurance Corporation (FDIC) insures up to $250,000 per bank, per depositor, per ownership category. If you're in the fortunate position to have more than that in the bank, getting an account with another bank increases the total amount of insurance protection you receive. For example, keep $500,000 in one checking account and only half of it's insured, but transfer half of it to a checking account with another bank, and the full amount is covered in the event that both banks fail. END
 TITLE: Should I Have Multiple Bank Accounts? CONTENT: Drawbacks of Multiple Bank Accounts\n-----------------------------------\n*   **Minimum balance requirements**: Some banks and credit unions require that you keep a certain amount in your account to keep the account open or to avoid a monthly fee. If you don't have enough money to spread out across multiple accounts, it may not be worth the hassle.  \n*   **Fees**: It's possible to find several bank accounts that don't charge monthly fees, but if you decide to choose banks or credit unions that charge them, it can get expensive fast.\n*   **Organization**: It's important to stay organized if you have more than one bank account. It'll be harder to keep track of your money if you have to log in to multiple online accounts to check your transactions. Forget about a recurring payment, for instance, and you may accidentally overdraw your account and get slapped with a fee. END
 TITLE: Should I Have Multiple Bank Accounts? CONTENT: How Many Bank Accounts Should You Have?\n---------------------------------------\nHaving multiple bank accounts can be beneficial, but how many you decide to have depends on your situation and goals. At the very minimum, it's a good idea to have at least one checking and one savings account.\nBeyond that, consider your money management goals. If you have several short-term savings goals, such as building an emergency fund and saving for a down payment on a house, consider opening a savings account for each one to make it easier to track your progress.\nIf you like the benefits that a particular online checking account provides but you also want to be able to make cash deposits, you may be out of luck since many online banks don't offer that option. Getting an additional account with a traditional bank or credit union can give you that ability.\nTake your time to consider your situation, your preferences and your goals to determine how many bank accounts are right for you. END
 TITLE: Should I Have Multiple Bank Accounts? CONTENT: Do Bank Accounts Impact Your Credit Score?\n------------------------------------------\nIn general, bank accounts don't affect your credit score, and they don't show up on your credit report. One exception is a charged-off account: If you have a negative balance on a checking account and never pay back what you owe, the bank may report it to the credit reporting agencies.\nYour bank accounts do show up on your ChexSystems report, which is a consumer report for your banking activity. Banks and credit unions will review your ChexSystems report when you apply for a bank account, and if you've had negative items on past accounts, it can make it difficult to get approved for a new one. END
 TITLE: Should I Have Multiple Bank Accounts? CONTENT: Use Financial Tools to Improve Money Management\n-----------------------------------------------\nIf you're planning to use multiple bank accounts, consider using a budgeting tool like Mint or You Need a Budget to keep track of all of them more easily. These tools use direct import software to update all of your transactions in one place.\nAdditionally, consider using a credit monitoring service to help keep track of your credit score. With Experian, for example, you'll get free access to your Experian credit report, your FICO® Score☉ and real-time alerts when certain changes are made to your report.\nTools like these make it easier to keep track of your finances without requiring a lot of time and effort on your part. END
 TITLE: What Is FDIC Insurance? CONTENT: What Is Covered by FDIC Insurance?\n----------------------------------\nFDIC Insurance covers deposit accounts, including checking and savings accounts, money market deposit accounts, negotiable order of withdrawal (NOW) accounts, certificates of deposits (CDs), cashier's checks, money orders, and select prepaid cards from FDIC-backed banks. Use this tool from the FDIC to determine if your banking institution is insured. END
 TITLE: What Is FDIC Insurance? CONTENT: FDIC Deposit Insurance Coverage Limits\n--------------------------------------\nFDIC insurance provides coverage of up to $250,000 per depositor, per insured bank account. The coverage amount is determined by the FDIC ownership category, which is the way deposits are held at your financial institution. Ownership categories include:\n*   **Single account**: A checking, savings or money market account without a named beneficiary. These accounts have an FDIC deposit insurance coverage limit of $250,000 per owner.\n*   **Joint account**: An account owned by two or more depositors that does not have named beneficiaries. FDIC insurance coverage is available for up to $250,000 per co-owner.\n*   **Select retirement accounts**: This includes individual retirement accounts (IRAs), 401(k)s, profit-sharing plans, self-directed Keogh plan accounts and Section 457 deferred compensation plan accounts. Qualifying retirement account deposits are covered up to $250,000 per owner.\n*   **Revocable trust account**: A formal living trust or informal \"in trust for\" (ITF)\/payable on death (POD) account with one or more beneficiaries. FDIC insurance coverage of up to $250,000 is available per owner, per unique beneficiary.\n*   **Irrevocable trust account**: Funds that are tied to an irrevocable trust from a written agreement or statute. The noncontingent interest of each unique beneficiary qualifies for FDIC deposit insurance coverage of up to $250,000.\n*   **Employee benefit plan account**: A deposit from a non-self-directed pension, defined benefit or other employee plan. The FDIC provides insurance of up to $250,000 for the noncontingent interest of each plan participant.\n*   **Government accounts**: Deposit accounts owned by federal agencies, states, counties, municipalities, the District of Columbia, Puerto Rico and Indian tribes. FDIC deposit insurance coverage for these accounts is limited to $250,000 per official custodian.\n*   **Partnership, corporation or unincorporated association accounts**: FDIC insurance covers up to $250,000 in deposits per partnership, corporation or unincorporated association.\nThe FDIC does not cover investments, such as stocks, bonds, Treasury bills or mutual funds, even if they are purchased through or held with an FDIC-insured financial institution. END
 TITLE: What Is FDIC Insurance? CONTENT: What Happens When a Bank Fails\n------------------------------\nWhen an FDIC-backed bank fails, the FDIC works diligently to sell it to another financial institution promptly through a purchase and assumption transaction. If their efforts are unsuccessful, the FDIC disburses funds (up to the insured limit) to depositors directly through a deposit payoff.\nIt could take up to two business days to receive your funds, unless accounts are linked to trust agreements or fiduciaries. In this case, it could take longer for insurance payments to be sent to you, as additional documents may be needed to release funds.\nBelow are some other important considerations to keep in mind when a bank fails:\n*   **Unused checks and deposit slips**: You can continue to use checks and deposit slips for your account if your bank is acquired.\n*   **Interest earned on deposits**: Interest will no longer accrue on deposits if your bank closes. The accrual of deposits will resume if a new bank takes over, but at the new interest rate they set.\n*   **Direct deposits**: Funds are deposited as usual if your bank is acquired by another bank. Otherwise, the FDIC will reroute direct deposits to a different bank temporarily so depositors will have access to their funds.\n*   **Pending checks and payments**: These are typically processed without a hitch if your bank is acquired. If not, the checks will not clear and payments will be returned. The returned transactions will not directly hurt your banking or credit profile, but you'll need to make other arrangements to remit payment right away to make sure it's considered on time.\n*   **Safety deposit boxes**: You can continue to access your safety deposit box if a healthy bank takes over. Otherwise, you will receive a letter from the FDIC that details how to access the contents of your safety deposit box.\nIf you do have over $250,000 in a single FDIC-backed account, your funds may not be at risk if they are held in separate ownership categories. For example, you could have $250,000 in a single account and another $250,000 in a joint account at the same bank.\nAnother option to protect your hard-earned money is to have accounts at more than one bank. Let's say you have $1 million and open four money market accounts at four different FDIC-backed banks with deposits of $250,000 each. Your funds won't be at risk of loss. However, if you put the entire amount into the same type of account at a single FDIC-backed bank, $750,000 would not be insured. END
 TITLE: What Is FDIC Insurance? CONTENT: The Importance of FDIC Insurance\n--------------------------------\nFDIC insurance is a valuable benefit available to consumers. It insures your deposits in FDIC-backed financial institutions by up to $250,000, so you can have peace of mind knowing your money is safe in the event your bank fails. END
 TITLE: What Is a Roth IRA, and Is It Right for Me? CONTENT: How a Roth IRA Works\n--------------------\nA Roth IRA is a type of investment account, which means the money you contribute is invested in stocks, mutual funds, exchange-traded funds or other vehicles. Your investment earnings grow as the market grows, or shrink as the market shrinks. (Your account can also include less risky choices such as cash and bonds, which don't have the same potential for growth.)\nYou'll open a Roth IRA with a bank, credit union or brokerage that will host the account, and you'll choose the type of investments you want to make. Some Roth IRA providers can help you pick investments based on your age and risk tolerance: They may recommend investing more heavily in stocks, for instance, if you're a younger investor who has time to ride out ups and downs in the stock market before retirement. END
 TITLE: What Is a Roth IRA, and Is It Right for Me? CONTENT: Contribution and Income Limits for a Roth IRA\n---------------------------------------------\nWhile there are many benefits of a Roth IRA, you're limited in the amount you can save in this type of account—and particularly high earners are locked out of contributing altogether. Here are the contribution limits for 2021:\n*   You can put up to $6,000 ($7,000 if you're 50 or older) into a Roth IRA. That's substantially less than the $19,500 maximum annual contribution allowed in a 401(k) workplace retirement account.\n*   The amount you contribute to a Roth IRA in a single year cannot be more than the amount of earned income (wages, tips and other compensation) you report on your tax return for that year.\nThere are also limitations on who can participate in a Roth IRA, and they're based on your modified adjusted gross income (MAGI). For most people, this is very close to the adjusted gross income reported on federal income tax returns. These are the Roth IRA contribution limits for 2021 by tax filing status:\n*   **Single, head of household or married filing separately (and living separately from your spouse):** You can contribute the maximum annual amount to a Roth IRA if you earn $125,000 or less; a reduced amount if you earn between $125,000 and $140,000; and none if you earn more than $140,000 per year.\n*   **Married filing separately (and living with your spouse at any point in the year):** You can contribute a reduced amount to a Roth IRA if you earn less than $10,000, and none if you earn more than $10,000 per year.\n*   **Married filing jointly or qualifying widow(er):** You can contribute the maximum annual amount to a Roth IRA if you earn $198,000 or less; a reduced amount if you earn between $198,000 and $208,000; and none if you earn more than $208,000 per year. END
 TITLE: What Is a Roth IRA, and Is It Right for Me? CONTENT: What Is the Difference Between a Roth IRA and a Traditional IRA?\n----------------------------------------------------------------\nThere are two types of IRAs to choose from: Roth and traditional. The primary differences are that Roth IRAs have income limits, traditional IRAs require withdrawals starting at age 70½, and you'll pay income tax on withdrawals from traditional IRAs in retirement. Explore more differences in the table below. END
 TITLE: What Is a Roth IRA, and Is It Right for Me? CONTENT: What Are the Benefits of a Roth IRA?\n------------------------------------\nThere's a reason why you may have heard that it's a good idea to save in a Roth IRA. These accounts have many special benefits that make them a worthwhile retirement savings option. Here are the top advantages of a Roth IRA:\n*   **Post-tax contributions:** In a Roth IRA, you pay tax on contributions the year you save in the account. That means you can't deduct contributions from your tax return, but when you withdraw the funds, that money won't be taxable as income—as long as your Roth IRA has been open for at least five years.\n*   **Useful for younger earners:** Roth IRAs can be especially beneficial to people just starting in their careers, when their incomes—and income tax rates—are lower than they may be later on.\n*   **Account can be opened on behalf of a spouse or child:** There is no minimum eligibility age for a Roth IRA owner, so contributions made while your child is young can grow tremendously over a lifetime. To qualify, the child must have earned income, such as wages and tips from part-time jobs. The child may have to file taxes each year Roth IRA contributions are made for them.\n*   **Account can have multiple beneficiaries:** A Roth IRA also can be used to pass wealth to heirs, as you can name multiple beneficiaries to your account. Beneficiaries must take required minimum distributions from the account after your death, but younger beneficiaries can take smaller distributions over a longer time period—allowing funds in the account to continue tax-advantaged growth. END
 TITLE: What Is a Roth IRA, and Is It Right for Me? CONTENT: How to Open a Roth IRA\n----------------------\nYou can open a Roth IRA at a bank, credit union or brokerage. Investment options and fees vary widely from plan to plan, so study the options carefully. Ideally, set up automatic transfers from your checking account to the Roth IRA, perhaps once per month. It may be helpful to contribute a percentage of your income so you can scale it easily as your pay increases.\nConsider these factors when shopping for a Roth IRA:\n*   **Fees:** You can find plenty of Roth IRA plans that don't charge anything to open an account. Check the plan's management or per-trade fees too.\n*   **Degree of fund management:** Fund management options run the gamut from no-frills, do-it-yourself discount brokerages to accounts actively managed by experts (who may command high fees). Make sure the account type you choose matches your style of investing.\n*   **Minimum opening balances and fund balances:** Some Roth IRAs require a minimum opening deposit that may be larger than the amount of your regular contribution. Some mutual funds and other investment vehicles available through Roth IRAs also require minimum fund balances, or \"buy-in\" amounts. Choosing a fund with a sizable fund balance could delay any investment returns until you accumulate enough contributions to buy in.\nThese options can be confusing, but staff at institutions that offer Roth IRAs should be able to guide you through the process. END
 TITLE: What Is a Roth IRA, and Is It Right for Me? CONTENT: Choosing a Roth IRA\n-------------------\nThere are many retirement savings options to consider, and you're already on the right track by looking closely at each of them. But thanks to a Roth IRA's tax advantages and flexibility in distribution timing, it's a smart choice for many—even if it's in addition to a workplace-sponsored 401(k).\nCommitting to saving for the future may be the hardest part, though the younger you start, the more you can accumulate for your retirement. Once you've decided to prioritize your retirement, setting the money aside will soon become a habit you won't want to give up. END
 TITLE: Can an Installment Loan Help Improve Your Credit Score? CONTENT: What Is an Installment Loan?\n----------------------------\nAn installment loan is a type of credit that's paid off in fixed payments, usually on a monthly basis, over a set repayment term. Typically, unless you've received an intro 0% APR financing deal, you'll pay interest to the lender in exchange for paying off the loan over time. The loan can be either secured—that is, it's backed by a piece of collateral that the lender can take away if you don't pay—or unsecured. Common installment loans include mortgages, student loans, personal loans and car loans.\nInstallment loans are different from credit cards, which are a type of revolving credit. Unlike installment credit, a revolving credit account lets you repeatedly borrow money and pay it back over a period of time.\nWhereas you might take out an installment loan for $10,000 and pay it back over five years, a credit card would provide you with a credit limit or credit line (for comparison's sake, say $10,000), which you could charge up to as you wish. You'll typically accrue interest on any balances you carry from one billing period to the next. END
 TITLE: Can an Installment Loan Help Improve Your Credit Score? CONTENT: The most important element of your FICO® Score☉ is your payment history. This factor alone accounts for 35% of your score, which is why consistently making all bill payments on time is one of the surest ways to improve and maintain excellent credit.\nBecause installment loans require monthly payments over an extended period of time, they give you the opportunity to make regular on-time payments that help you improve your score. On the flip side, missing even one payment or paying 30 days or more late will negatively impact your credit score. Choose payment options, like automatic debit, that will reduce the likelihood that you miss paying your bill.\nA less weighty, but still important, factor in your score is credit mix. Since the FICO scoring algorithm is chiefly looking for a combination of both installment and revolving credit, adding an installment loan to your credit report when you've only used credit cards, or vice versa, can help give your scores a lift.\nCredit mix accounts for 10% of your FICO® Score, so it's not as important as other factors. Also, since the potential downsides of taking on credit you can't manage are so consequential, it's not advisable to take on new credit solely to improve your credit mix. END
 TITLE: Can an Installment Loan Help Improve Your Credit Score? CONTENT: Additional Ways to Boost Your Credit\n------------------------------------\nThe second most important determining factor in your credit score—just behind payment history—is credit utilization, or the amount of revolving credit you use relative to your credit limit. The lower the balances on revolving credit lines you carry, the less of a risk you appear to scoring algorithms and to lenders considering you for new credit.\nIt's ideal to pay off credit card balances every month, and to avoid using more than 30% of your credit limit at any time since doing so can start to have a bigger impact on your scores. If you limit the amount of credit card debt you take on, your score will reflect your ability to manage debt responsibly. (While installment loan balances are considered in FICO® Score calculations in the \"amounts owed\" category, credit utilization only includes revolving accounts. Installment balances will also impact your debt-to-income ratio, which lenders may consider when you apply for certain types of credit, like mortgages.)\nAnother way to improve credit is to give the credit bureaus access to your payment history for bills that otherwise may not be incorporated into your score. For example, if you use a bank account to pay for monthly streaming service, phone or utility bills, those payments traditionally wouldn't be considered in your credit score. Experian Boost™† changes that by allowing you to add these accounts to your Experian credit report and get credit for those on-time payments. Experian Boost is a free service that can instantly improve your FICO® Score based on your Experian credit file. END
 TITLE: Can an Installment Loan Help Improve Your Credit Score? CONTENT: Using Installment Loans to Improve Credit\n-----------------------------------------\nIt's wise to only apply for the credit you need. Applications for new credit can have a brief negative effect on your credit score, and it's risky to take on new debt without the means to pay it off.\nBut if you were already in the market for an installment loan to buy a new car or home or attend college, improving credit can be a valuable secondary outcome of taking out a loan. Make all monthly payments on time so you can make the most of the credit-boosting opportunity an installment loan provides. END
 TITLE: What Credit Score Does a Cosigner Need? CONTENT: How Does Cosigning Work?\n------------------------\nWhen asking someone to be your cosigner, remember they are doing you a favor. Without them, you may not be able to land a loan with favorable terms. It's a nice gesture, but also a huge responsibility that comes with a major risk. Here's why: If you lose your financial footing, die or simply decide not to pay, your cosigner will be completely on the hook for repaying your loan.\nLet's say you just graduated college and want to buy a car to commute to your first job. You have no credit and can't get approved for a car loan with desirable terms, so you ask your mother to cosign for you. If she cosigns, you're essentially borrowing her credit to secure your car loan. If your job doesn't work out and you can't make your car payments, your mother will be responsible for them.\nIf you believe you'll be able to repay your loan and feel comfortable asking a loved one to cosign, take these steps:\n*   **Explain why you need the loan.** It's unlikely that someone will agree to cosign a loan if they don't know what it's for or how it will benefit you. Have a well-thought-out rationale and explain it to your potential cosigner.\n*   **Reveal why you need a cosigner.** Let your potential cosigner know why you need their help. Be honest with them and inform them that you don't have the credit you need to obtain favorable financing.\n*   **Make their responsibility perfectly clear.** Inform your potential cosigner that they'll have to repay your loan if you can't or don't make your payments for any reason. Be sure they are comfortable with this responsibility. END
 TITLE: What Credit Score Does a Cosigner Need? CONTENT: Who Qualifies as a Cosigner?\n----------------------------\nTo be a cosigner, your friend or family member must meet certain requirements. Although there might not be a required credit score, a cosigner typically will need credit in the very good or exceptional range—670 or better. A credit score in that range generally qualifies someone to be a cosigner, but each lender will have its own requirement.\nIn addition to having a good or excellent credit score, your potential cosigner will need to show that they have enough income to pay back the loan in the event you default on it. If they lack sufficient income, they won't be able to offset the lender's risk and may not be able to cosign.\nTo determine whether a potential cosigner has enough income, the lender will likely calculate their debt-to-income ratio (DTI), which compares their total monthly debt payments with their earnings. It's a good idea to figure out your potential cosigner's DTI on your own before they apply to be your cosigner. To do so, add up all of their monthly bills, including the new loan payment they'd be liable for in the event you default, and divide that amount by their monthly pretax income. If their DTI is less than 50%, they should be good to go. END
 TITLE: What Credit Score Does a Cosigner Need? CONTENT: Does Cosigning Affect Your Credit?\n----------------------------------\nWhen someone cosigns a loan for you, it ties the loan to their credit for its entire term. If you stop making loan payments and your cosigner is unable to take them over, you will both notice a drop in your credit scores. Additionally, the loan will factor into both of your DTIs, and that can hinder your ability to secure financing in the future.\nIf the debt is turned over to a collection agency due to non-payment, your cosigner will be included on call and mailing lists. In the worst-case scenario, the lender or debt collector may file a lawsuit against the cosigner if you can't repay your loan.\nOn the other hand, cosigning could help your loved one build their credit score. If you're a responsible borrower and make your payments on time, you both may see an improvement in your credit. Also, your loan will be added to your credit mix, which can help your credit scores as well. END
 TITLE: What Credit Score Does a Cosigner Need? CONTENT: The Bottom Line\n---------------\nWhile you may be tempted to ask a parent, sibling or significant other to cosign a loan, it's important to weigh the pros and cons of what you're asking them to do. If you don't feel confident that you'll be able to make timely payments, asking them to be a cosigner can be a risky move that can damage their finances as well as your relationship with them.\nRemember that cosigning isn't typically a short-term commitment. Once they accept the responsibility, the cosigner is in it for the entire term of the loan. They won't have the option to back out or ask the lender to take their name off the loan, so if they're not completely comfortable with the responsibility, look for another cosigner. END
 TITLE: What Is a Credit Card Cosigner and Should You Use One? CONTENT: When you apply for a credit card, the card issuer determines how likely or unlikely you are to pay your credit card debt by reviewing your credit history. If you have limited or poor credit, the issuer may determine you're too risky to lend to and deny your application.\nThis is where a credit card cosigner might come in handy. Applying with a cosigner who has strong credit scores and a good repayment history could help you get a credit card because they agree to pick up the tab if you don't or can't pay.\nTwo parties are involved in a cosigner scenario:\n*   **The primary credit card holder**: The primary credit card owner has the same privileges and obligations as most credit card consumers, including the ability to make purchases and pay off the balance. However, if the primary card holder can't repay the debt, the payment obligation shifts to the credit card cosigner (just like when there's a cosigner on a loan).\n*   **The cosigner**: A credit card cosigner takes the same responsibility as a cosigner would on any other kind of debt: If the primary card holder does not pay the credit card debt, the credit card cosigner is responsible for repaying it. END
 TITLE: What Is a Credit Card Cosigner and Should You Use One? CONTENT: Pros and Cons of Credit Card Cosigning\n--------------------------------------\nThe benefit of using a cosigner if you have less-than-stellar credit is that it could help you qualify for an unsecured card that doesn't require an upfront deposit. Plus, managing credit under the watchful eye of a cosigner could help you establish responsible credit habits.\nFor cosigners, an advantage of cosigning is that you could put your good credit to use by helping a family member, significant other or friend qualify for a card they may not be able to get on their own. But before cosigning, it's important to consider all the responsibilities involved.\nBills that the credit card owner doesn't pay are redirected to the cosigner, who is contractually obligated to pay the bills. At that point, late payments could cause the cosigner's credit score to drop, and disagreements over unpaid bills could cause the relationship to sour.\nIf you decide to cosign on a credit card, your main responsibility will be keeping an eye on the primary cardholder's spending and whether they are making timely payments since their inability to pay will have financial ramifications for you.\nIf you're the credit card applicant partnering with a cosigner, your main responsibility is to make at least minimum payments (though it's best to pay off the balance each month) and to not charge more to the card than you can manage. END
 TITLE: What Is a Credit Card Cosigner and Should You Use One? CONTENT: Credit Card Cosigner vs. Authorized User\n----------------------------------------\nCredit card cosigners and authorized users are often confused, but they are two different things. Here's an overview of how both work.\n*   **A credit card cosigner**: A credit card cosigner agrees to pay the credit card bill if the account owner on the same card account doesn't pay. Typically, credit card cosigners don't receive a physical credit card, don't get a bill (unless the account owner doesn't pay the credit card debt) and don't have access to the credit card account.\n*   **An authorized user**: A primary credit card holder can add an authorized user to his or her credit card account. The authorized user then can use the card to make purchases but is not ultimately responsible for the card payment (that burden falls on the primary credit card holder). Authorized users may see a moderate uptick in their credit scores, assuming the primary user pays bills reliably and those payments are reported to the credit bureaus. Some cards may charge a fee for an additional cardholder; check with your card issuer for details. END
 TITLE: What Is a Credit Card Cosigner and Should You Use One? CONTENT: Which Credit Card Issuers Allow a Cosigner?\n-------------------------------------------\nMost credit card providers do not accept credit card cosigners. In fact, U.S. Bank was the only major issuer currently found to offer cosigning.\nCredit card providers that do not currently allow credit card cosigners include:\n*   American Express\n*   Barclaycard\n*   Capital One\n*   Chase\n*   Citi\n*   Discover\n*   Wells Fargo\nBefore attempting to apply for a credit card with a cosigner, check with the card provider to find out whether cosigners are allowed. Also, make sure that both the primary cardholder and the credit card cosigner are notified of important card information, like credit limit changes, interest rate changes, and any fees or penalties both parties should know about. END
 TITLE: What Is a Credit Card Cosigner and Should You Use One? CONTENT: Alternatives to Cosigning a Credit Card\n---------------------------------------\nBecause so few credit card issuers are currently accepting cosigners, you may have to explore other ways of obtaining and building credit. Here are some alternatives to consider:\n*   **Get a secured card.** Secured credit cards work like regular credit cards, but they're backed by a deposit you make upfront, which typically acts as your credit line. After proving you can keep up with payments, you may get your deposit back or be transitioned to an unsecured card.\n*   **Become an authorized user.** Another way to potentially build credit is by becoming an authorized user on a family member's or friend's account with excellent payment history. If the credit card issuer reports card payments to the credit bureaus for authorized users, it could positively help your score. With improved credit, you could then apply for your own card. END
 TITLE: Can You Get a Personal Loan With a Cosigner? CONTENT: What Is a Personal Loan?\n------------------------\nBefore we dive into the details of getting a cosigner, let's first take a closer look at what a personal loan is. Personal loans are a type of installment loan, meaning borrowers receive funds in one lump sum and pay the loan back in fixed monthly payments over a set time period. Once the account is paid off, it's closed and you cannot borrow more money unless you're approved for a new loan. Installment credit is different from revolving credit, like credit cards, which you can use to borrow and pay off repeatedly.\nPersonal loans are available through a number of banks and credit unions, as well as online lending platforms. Loan amounts can vary anywhere from around $1,000 to up to $100,000, depending on the lender. The borrower's credit score, debt-to-income ratio, employment status and income all come into play as well. Generally speaking, those with a good credit score or better (670 or above) can qualify for better loan terms and lower interest rates. END
 TITLE: Can You Get a Personal Loan With a Cosigner? CONTENT: How Does Using a Cosigner for a Personal Loan Work?\n---------------------------------------------------\nBringing on a cosigner might help you qualify for personal loans with better interest rates and terms. A cosigner is someone who agrees to step in and assume financial responsibility for the loan should you fail to make your payments. It essentially provides an additional layer of security for the lender, assuming they allow cosigners (not all do). Every lender is different, but most prefer cosigners that have a credit score of at least 670. They'll also need to prove that they're financially capable of repaying the loan if it ever goes into default.\nA cosigner can be a trusted friend or family member who feels comfortable taking on this responsibility. Just like the borrower, the cosigner will be expected to provide the lender with personal financial information during the application process to determine their eligibility. This could include pay stubs, bank statements, a list of current debt obligations and more. END
 TITLE: Can You Get a Personal Loan With a Cosigner? CONTENT: What Are the Risks of Using a Cosigner for a Personal Loan?\n-----------------------------------------------------------\nPartnering with a cosigner can be an effective way to qualify for a personal loan, but it doesn't come without risk. When someone agrees to cosign your personal loan, the loan will show up on both of your credit reports.\nOn-time loan payments on the account can help a cosigner build credit, but any missed payments will have a significant negative effect on the primary borrower's credit as well as that of the cosigner. If the account is ultimately defaulted on, there will be a further drag on credit scores, and the potential for other financial and legal repercussions for both borrowers.\nPayment history is no small thing, as it accounts for 35% of your FICO® Score☉ . And because the personal loan will figure into the cosigner's debt-to-income ratio, it could also affect any credit applications they seek going forward.\nFinancial repercussions aside, asking a friend or loved one to be a cosigner could complicate your personal relationship. If things don't go as planned, you could risk jeopardizing that bond. It's also worth noting that most lenders won't allow you to remove a cosigner from the account unless you're able to refinance it with a new loan that's only in your name. For these reasons, it's wise to have an open and honest conversation with a potential cosigner from the get-go. Communicate to them why you're seeking the loan, why you need their help, and your plan for making good on your payments should they agree to cosign. If you encounter trouble repaying the loan, let them know as soon as possible. END
 TITLE: Can You Get a Personal Loan With a Cosigner? CONTENT: When Does It Make Sense to Use a Cosigner on a Personal Loan?\n-------------------------------------------------------------\nBringing a cosigner into the equation may help improve your chances of qualifying for an affordable personal loan if you're having trouble meeting the eligibility criteria on your own or if a cosigner would help you secure a much lower interest rate. It might be wise to get a cosigner if you're encountering any of the following roadblocks:\n*   **You have below-average credit.** If you don't currently meet the credit score requirements to qualify for a personal loan, bringing in a cosigner might be a viable workaround—assuming you have reliable employment and steady income to easily afford the monthly payment.\n*   **You don't meet the income requirements.** Even with great credit, inconsistent income could hurt your chances of obtaining a personal loan. Some lenders may be hesitant to approve you if you have an inconsistent employment history or lack of cash savings. Just be sure you have a plan in place for repaying your loan if the cosigner agrees to put their name on it. END
 TITLE: Can You Get a Personal Loan With a Cosigner? CONTENT: What to Do if You Don't Have a Cosigner\n---------------------------------------\nIf you find yourself in a financial emergency and don't have enough in your savings account to see you through, a personal loan may be your only option—but not all situations are quite as urgent. If you're seeking a personal loan to cover something like a wedding or home improvement project, you might have the luxury of slowing down and taking steps to avoid a cosigner altogether. Here are some other options to consider. END
 TITLE: How Much Money Should You Keep in Checking and Savings? CONTENT: How Much Cash Should You Keep in Your Checking Account?\n-------------------------------------------------------\nThe amount of cash you keep in your checking account is a personal preference, and it may vary throughout the month and from month to month. Generally speaking, the goal is to maintain a balance that helps you minimize or eliminate bank fees and avoid overdrawing on your account.\n**Mind your minimums.** Your checking account should never drop below your required minimum balance, if you have one. An insufficient balance will likely trigger a fee.\n**Calculate your expenses.** Track your expenses over a few months to determine what your average monthly outflow is.\n**Find your level.** Many experts recommend keeping one to two months' worth of expenses in your checking account as a base. You might want to aim high if any of the following apply to you:\n*   You're a gig worker, rely on tips or have sporadic income.\n*   You don't check your account activity and balance frequently, and don't use account alerts to track transactions.\n*   Your savings account is at a different bank or credit union and funds will take two or three days to transfer.\nOverdraft fees typically range from $25 to $35 per transaction, so having a good cushion in your account can save you money and aggravation. Backup funds can also alleviate anxiety: An unusually large utility bill or small emergency expense is unlikely to cause a cascade of overdrafts. And the likelihood of a missed loan or credit card payment due to insufficient funds is relatively low.\nEven with a few months of expenses in the bank, it's important to check your account regularly to make sure you're maintaining your intended balance. You also want to monitor your account for fraudulent transactions. END
 TITLE: How Much Money Should You Keep in Checking and Savings? CONTENT: How Much Cash Should You Keep in Your Savings Account?\n------------------------------------------------------\nIn addition to keeping an adequate balance in your checking account, it's a good idea to have a separate savings account. Why?\n*   Ideally, you want an additional three to six months' worth of expenses set aside as an emergency fund.\n*   You may also want to use separate savings to accumulate money for big-ticket items such as a down payment on a home, a vacation or a new car.\n*   You're less likely to \"accidentally\" spend money if it isn't lying around in your checking account.\n*   You can earn interest on your savings.\n*   If your checking account is hacked, you'll have a ready source of funds while the bank sorts out your claim.\nAccumulating three to six months' worth of expenses—plus any savings you may be piling up for discretionary spending—can take a bit of discipline. Setting aside a dedicated percentage of each paycheck is one way to create a savings routine. Many financial institutions also have automatic savings services that will sweep money from your checking to savings on a regular basis. Also key: Don't raid your savings account to cover everyday expenses. When you do use savings to pay for emergencies, build it back up as soon as you're able.\nAlthough savings accounts may not seem like the most exciting financial products to shop for, there are differences between accounts you may want to consider. In June 2021, starting interest rates on regular savings accounts hovered around 0.01%. At this rate, a $10,000 account would earn $1 in interest per year. A typical high-yield savings account, on the other hand, might offer around 0.5% interest—earning about $50 in interest on the same $10,000 account.\nMany regular savings accounts also charge maintenance fees, ranging from $5 to $12 monthly. Sometimes, these fees can be waived by maintaining a minimum balance or linking multiple accounts. But paying $60 to $144 a year in fees can easily cancel out—and even reverse—the progress you make with interest.\nWhen you're ready to start saving, shop around for a bank account. Some of the best rates and terms on high-yield savings accounts are with online banks like Marcus or Vio Bank, but many banks and credit unions also have high-yield accounts. Look for accounts that enable you to bypass monthly fees as well. END
 TITLE: How Much Money Should You Keep in Checking and Savings? CONTENT: Best Places to Store Additional Cash\n------------------------------------\nOnce your checking and savings accounts are amply funded, it may be time to explore additional options. With basic transaction and savings needs covered, opportunities to earn more may be available to you. Consider:\n*   **Money market and CD accounts**: Money market accounts are similar to high-yield savings accounts. They often come with minimum balance requirements and transaction limits, but they typically offer competitive interest rates. Certificates of deposit, or CDs, can pay higher interest still. Rates and terms vary depending on the amount of money you have to deposit and the predetermined length of time you choose to keep your money in the account. CDs aren't great for emergency funds: If you end up needing the money before the CD matures, you may lose the interest and pay a penalty. For \"extra\" money you don't intend to spend, however, CDs may earn you a bit more in interest without much additional risk.\n*   **Retirement or education accounts**: If you'd like to save toward major life goals like retirement or paying for college, explore the tax advantages of traditional and Roth IRAs or 529 education plans.\n*   **Investments**: Because investing in stocks, bonds or mutual funds comes with additional risk, the time to open an investment account is usually after you've covered your checking and savings needs and are funding a retirement account or college account. If you're interested in investing, take the time to learn more about your options. In addition to considering an experienced financial advisor, you may be able to start out with app-based investing or a robo-advisor. END
 TITLE: How Much Money Should You Keep in Checking and Savings? CONTENT: Smart Funding Lays the Groundwork\n---------------------------------\nSpending and saving—checking and savings—are the push and pull of personal finance. Keeping your accounts properly funded with one or two months of expenses in checking and another three to six months of expenses in savings helps you balance these forces and can form the foundation for reaching larger goals like investing, saving for retirement or building wealth. END
 TITLE: How to Cash a Check Without a Bank Account CONTENT: If you're looking to cash a check but don't have a checking or savings account of your own, here are your top options.\n### Cashing at the Check-Issuing Bank\nIf you take the check to a branch of the bank that issued the check, the bank teller can check the account it's drawn from to ensure the funds are available. The name of the bank should be listed on the check.\nIt's important to note that not all banks do this, and some may charge a fee. Also, if the check is issued by a bank with no branches in your area, you'll need to pursue other avenues. If there are branches of the bank near you and they provide this service free of charge, this is your best option.\n### Cashing at a Retailer\nSeveral retailers offer check-cashing services through their customer service departments. It's important to shop around, though, since cashing a check this way will cost you a fee that can vary by retailer.\nThis can be a convenient option, especially if the issuing bank doesn't have a physical branch nearby. But you might not be able to find a retailer that will help you if it's a larger check.\n### Check-Cashing Stores\nA check-cashing store is another convenient way to get access to your funds, but it can also be the most expensive one. Many of these stores charge a percentage of the check, which can range from 1% to 4%. Some may even charge a flat fee on top of that rate. As a result, consider these stores as a last resort.\nCheck-cashing stores may also provide other services, including payday loans, title loans and more.\n### Deposit to a Prepaid Debit Card\nPrepaid debit cards typically allow you to load funds via mobile check deposit. Prepaid debit cards are relatively easy to get approved for, even if you can't open a checking account.\nThat said, many prepaid cards have up to a 10-day waiting period before you can access your check funds. If you want the money faster, you may have to pay a fee of up to 5%, which can be expensive.\n### Cash With Select Apps\nApps like Ingo Money allow you to deposit your check into an account of your choosing, which can be a prepaid debit card, PayPal account or bank account. However, the same drawback applies as with prepaid cards. You have to wait 10 days to get access to your funds unless you pay a fee of up to 5% of the check amount for rapid access. END
 TITLE: How to Cash a Check Without a Bank Account CONTENT: How to Cash a Large Check Without a Bank Account\n------------------------------------------------\nFor most checks, you shouldn't have any problems using one of the options mentioned above. With large checks, however, the process can be a little more complicated.\nFor example, Kmart only cashes payroll and government checks up to $2,000, and Walmart will go as high as $5,000—though it does increase that limit to $7,500 from January through April, likely to accommodate tax refunds. Personal checks can be cashed up to $500 at Kmart and $200 at Walmart.\nIf you have a check that's larger than that, work with the issuing bank or deposit it into your prepaid card account, or even your PayPal account via an app like Ingo Money. END
 TITLE: How to Cash a Check Without a Bank Account CONTENT: What to Consider Before Cashing a Check Without a Bank Account\n--------------------------------------------------------------\nGetting a bank account of your own is one of the best things you can do to help with cashing checks. But if you're having a hard time qualifying for one, here are some things to think about when deciding where to go.\n### You May Be on the Hook for a Fee\nIn most cases, cashing a check using a retailer or check-cashing store will result in a fee, and some issuing banks may charge something as well. To limit how much you spend on check-cashing fees, research your options to find the one that charges the least.\n### You'll Need Some Form of ID\nAny institution that offers check-cashing services will require at least one form of identification. They do this to ensure that you are the person who should rightfully receive the check's funds.\nIn some cases, you may be required to provide two forms of identification—especially if you're trying to cash a large check.\n### Personal Checks Are Harder to Cash\nIf you're looking to cash a personal check, you'll have fewer options than with a payroll, government or other form of preprinted check. Many check-cashing stores, for instance, won't cash personal checks at all, and retailers tend to have low limits of just a few hundred dollars.\nStart with the issuing bank, if possible. Another option is to ask the person who gave the check to instead give you cash, a money order or a cashier's check. END
 TITLE: How to Cash a Check Without a Bank Account CONTENT: Seek the Lowest-Cost Option\n---------------------------\nIt can be convenient to cash checks with retailers and check-cashing stores, but whether or not you do it regularly, it's worth taking a little extra time to find the lowest-cost option. In most cases, that's going to be getting a bank account of your own.\nIf you're having trouble getting approved for a bank account because of some poor marks on your ChexSystems report, which tracks your history of usage with past bank accounts, some banks and credit unions offer what's called second-chance banking. These accounts can come with some limitations but can help you get the services you need while you rebuild your banking history. END
 TITLE: How to Get a Loan if You Don’t Have a Job CONTENT: Can I Qualify for a Loan With Alternate Income?\n-----------------------------------------------\nIf you can't provide proof of employment, your lender will want to review your financial records to verify other source(s) of income. While unemployment benefits can represent a portion of your income stream, their temporary nature means you shouldn't rely on them alone. Other forms of income lenders may accept include:\n*   Social Security benefit payments\n*   Pension funds or other retirement benefit payments\n*   Disability income\n*   Alimony or child support\n*   Government annuity payments\n*   Regular proceeds from a trust\n*   Recurring interest or dividend payments\n*   Veterans Affairs benefits\n*   Public assistance\n*   Income from your spouse or partner (if they're a cosigner on the loan)\nIn addition to proving income streams, you may also be able to qualify for a loan by showing evidence you have access to a significant supply of cash, whether that's now (in a savings account, for instance) or later. A few situations a lender may accept:\n*   A pending employment offer or contract for freelance work\n*   Pending sale of real estate, securities or other investment property\n*   An upcoming inheritance END
 TITLE: How to Get a Loan if You Don’t Have a Job CONTENT: What to Consider Before Taking Out a Loan While Unemployed\n----------------------------------------------------------\nBefore taking out any loan, regardless of your employment status, it's important to be honest with yourself about your ability to fully repay the loan as agreed. Missing just one payment can do significant damage to your credit, and defaulting altogether will put a major blot on your credit history.\nBe realistic about your ability to cover the monthly payments for the life of the loan. If there's any doubt, consider skipping the loan or borrowing a lower amount you can comfortably repay.\nDepending on the nature and volume of your income sources, lenders may consider your unemployment reason for caution, which could cause them to alter their loan offer in several ways, including:\n*   Lowering the loan amounts you're eligible for\n*   Expecting full repayment of the loan in a shorter period of time\n*   Charging higher interest rates and possible origination fees to offset costs of pursuing payment if you default on the loan\n*   Requiring payment via automatic deductions from your bank account to reduce the chances you'll miss a payment END
 TITLE: How to Get a Loan if You Don’t Have a Job CONTENT: Where to Get a Personal Loan\n----------------------------\nA personal loan, which doesn't require you to secure it with property such as real estate or a car, is the type of loan best suited for getting ready cash quickly. Personal loans are available from many lenders.\nA great place to start looking for any loan, unemployed or not, is the financial institution where you have your checking account. Even in a world of automated decision making, an established relationship can still work in your favor.\nIf your preferred institution is a bank, consider applying for a loan at a local credit union as well. Credit unions often have competitive rates and may also have lower credit score requirements than banks. If they extend a loan offer you want to take, you'll have to become a credit union member before the loan is processed. Membership usually requires an open account with at least a few dollars in it—a small price for a good deal on a loan.\nOnline financial institutions, including peer-to-peer lending sites, typically provide quick lending decisions, and it's easy to use them to submit multiple applications at once.\nOnline services, such as the Experian CreditMatch™ personal loan finder, can show you loan offers suited to your FICO® Score. END
 TITLE: How to Get a Loan if You Don’t Have a Job CONTENT: Can I Get a Loan if I Have Bad Credit?\n--------------------------------------\nIf your credit is poor, it can make it harder to get approved for a loan. But if you're a little creative, very persistent and willing to accept a higher interest rate, there are ways to get a loan, even with less-than-ideal credit.\nIf you can wait a few months before applying for a loan, it might also be wise to consider taking steps now to spruce up your credit score. You can't convert a middling score to an excellent one overnight, but depending on your starting score, a few extra points could mean you'll get better deals on loan offers, in terms of interest rates and fees. END
 TITLE: How to Get a Loan if You Don’t Have a Job CONTENT: What Happens if I Don't Qualify for a Loan?\n-------------------------------------------\nIf you don't qualify for a traditional loan but really need some working cash, the following alternatives could help you get some money to help you with your financial needs:\n*   **Reapply with a cosigner**: Enlisting a friend or family member with good credit and regular employment could help you qualify for a loan But if you fail to make your loan payments, you could damage the cosigner's credit and cause them to be held responsible for paying off the loan.\n*   **Home equity line of credit (HELOC)**: If you're a homeowner and have been making mortgage payments long enough to have significant equity in your house, you may qualify for a line of credit that lets you borrow against it.  \n    A HELOC works like a credit card, allowing you to borrow against a set limit (a portion of your equity) and enabling repayment, with interest, in monthly payments of variable amounts. If you default on a HELOC, however, you can lose your home.\n*   **Car title loan**: If you own your car outright (you don't owe any payments on it), you can use it as collateral on a loan. But if you miss a payment on a car title loan, the lender can seize your car.\n*   **Cash advance**: Many credit cards let you make cash advances at ATMs, usually at an interest rate considerably higher than the one that applies to regular purchases.\n*   **Pawnshop**: Selling items of value through an online marketplace can be a way to raise cash quickly, but if that doesn't work, pawning or selling items of value at a pawnshop is another option.\nSudden unemployment can be a major source of stress, and a personal loan can help cover expenses so you can focus on job-hunting. Take care to borrow only what you need, and what you're sure you can repay once you're back on solid ground. END
 TITLE: What Is Crypto Lending and How Does It Work? CONTENT: Cryptocurrencies like Bitcoin and Ether are digital assets that have a lot of uses, including securing a loan.\nWith a crypto loan, you pledge a portion of your crypto holdings as collateral for the money you borrow. As with a secured loan like a car loan or mortgage, you retain ownership of your cryptocurrencies while you pay down the loan. If you fail to repay the loan as agreed, however, you risk losing a big chunk of your collateral.\nIn most cases, you can borrow up to 50% of your digital asset balance, though some platforms allow you to borrow up to 90% of your portfolio's value. But there are some restrictions on what you can do with the assets, and if you default on your debt or the price of your crypto drops significantly, you could default on the loan and lose the assets.\nDepending on the platform you use, you may be able to get your loan funds in U.S. dollars or in select cryptocurrencies. However, the types of cryptocurrencies you can use to secure a loan can be limited and will vary by platform. If you don't have the right currency, you'll have to exchange it for another one to qualify.\nAlso, some lenders allow you to secure a loan with non-custodial crypto, which are assets you have in a digital wallet that's not connected to an exchange, but many require you to hold your digital assets with the platform to be eligible. While crypto exchanges are generally secure, you may not want to keep your assets with a platform you think might fail. END
 TITLE: What Is Crypto Lending and How Does It Work? CONTENT: Benefits of Crypto-Backed Loans\n-------------------------------\nThere are many reasons to consider using your crypto holdings to secure a loan. Here are some of the top benefits:\n*   **Low interest rates:** Because they're secured by an asset, crypto loans tend to charge lower interest rates than many unsecured personal loans and credit cards. As a result, they can be appealing for someone who has digital assets they don't plan to use or trade and want to save money.\n*   **Ownership:** If you need cash, a crypto loan allows you to get the money you need without forcing you to sell your holdings.\n*   **Quick funding:** Once you're approved, you may be able to get your loan funds within hours.\n*   **No credit check:** In many cases, the crypto lending platform won't run a credit check when you apply. If your credit history is less than stellar, this could be an incredibly attractive alternative to bad credit loans. END
 TITLE: What Is Crypto Lending and How Does It Work? CONTENT: The Drawbacks of a Crypto Loan\n------------------------------\nWhile there are some key benefits that could appeal to certain consumers, there are a lot of downsides to consider as well:\n*   **Minimum borrowing requirements can be high.** While platforms can vary, you may simply not have enough holdings to secure the minimum loan amount the lender offers. With BlockFi, for instance, the minimum loan amount is $10,000, and with a 50% maximum loan-to-value ratio, that means you need $20,000 or more in holdings to get approved.\n*   **Repayment terms are short.** Crypto loans typically have terms of 12 month or less, which means you don't have a lot of time to repay them, especially compared with personal loans, which can offer longer terms. If you default on the debt, the platform may liquidate your holdings, which could result in a tax bill if your portfolio has gained in value since you first bought the digital assets.\n*   **Margin calls are a threat.** A margin call occurs when the value of your collateral assets drops below a threshold set by the lender. If the price of your crypto assets drops significantly—which is more likely with crypto versus traditional assets due to the volatility of the crypto market—you may need to deposit more into your account to keep your assets. If you don't, the platform may choose to sell your holdings, which could affect your tax liability.\n*   **Assets are inaccessible.** As long as your loan is outstanding, you can't use or trade your crypto assets. In other words, if the price of your assets tanks, you're stuck, and there's no insurance against the loss. END
 TITLE: What Is Crypto Lending and How Does It Work? CONTENT: Alternatives to Crypto Loans\n----------------------------\nAs with any financial decision, it's a good idea to research and compare several options before you settle on one. That's especially the case with relatively risky decisions like using digital assets to secure a loan.\nHere are some potential alternatives to consider:\n*   **Sell your crypto.** If you don't have enough crypto holdings to meet minimum loan requirements or you need more than you're allowed to borrow, it may make sense to simply sell the digital assets you have to get the funds you want. Just keep in mind that there can be tax implications when you sell crypto.\n*   **Take out a** **personal loan****.** Personal loans can be more expensive than crypto loans, but the upside is that many are unsecured, and you'll typically get a longer repayment period.\n*   **Apply for a 0% intro APR credit card.** If you have good or excellent credit, you may be able to get approved for a credit card with an introductory 0% APR promotion. These deals allow you to make purchases and pay them off over 12, 15, 18 or even 20 months without interest. Just keep in mind that the card's potentially high ongoing interest rate will apply to any balance left over after the introductory period ends.\n*   **Ask family or friends for help.** Depending on your situation, you may be able to ask a family member or friend to help you with your financial issues. Be clear about the repayment agreement and make sure you stick to it to avoid damaging the relationship.\nWhatever you do, take your time to shop around and carefully mull over your options. Consider using Experian CreditMatch™ to compare personalized credit card and personal loan offers.\nAlso, make sure to avoid high-cost forms of financing like payday loans and auto title loans. While these can provide you with fast cash, they have incredibly short repayment terms and exorbitant interest rates. END
 TITLE: What Is Crypto Lending and How Does It Work? CONTENT: Build Your Credit to Increase Your Options\n------------------------------------------\nOne of the reasons crypto loans can be appealing is that there's generally no credit check involved, and the alternatives can be high-cost loans. Regardless of how you choose to handle your current financial situation, take time to improve your credit so you'll have more options in the future when you need financing.Start by checking your credit to review areas that you can address. You can get a free copy of your credit report from all three bureaus through AnnualCreditReport.com. Your FICO® Score☉ based on Experian data and your Experian credit report are also available for free. Once you've reviewed your credit, take action to make improvements. This process can take time and effort, but it can pay off big time in the long run. END
 TITLE: Why Don’t I Have a Credit Score? CONTENT: Reasons You May Not Have a Credit Score\n---------------------------------------\nThere are a number of reasons you may not have enough credit history to generate a credit score, which can include:\n1.  **You have never used traditional credit accounts.** Your credit history will begin only when a creditor—such as a credit card issuer or lender—reports a record of you opening an account to one or more of the three major credit bureaus (Experian, TransUnion and Equifax). Without at least some record of credit in your name, a credit score cannot be populated as there is no past behavior on which to assess your creditworthiness. If you tend to use cash or debit and don't rely on any credit, you could have nothing in your credit history and lack a credit score as a result.\n2.  **You have not used credit in more than 24 months.** Once you've opened an account it's important to use it—at least occasionally—so lenders and scoring algorithms can see how you are handling your credit. If you have credit but don't use it for more than 24 months, your credit file may lack the data necessary to populate a credit score. Remember, payment history is one of the most important aspects of calculating your credit score, so the more on-time payment activity you have, the better your score will be.\n3.  **You're a recent immigrant.** Immigrants often don't have a credit score because they have never before applied for or used credit in the United States. Even if you have an established credit score from another country, none of those records will count toward your U.S. credit score. If you're an immigrant, consider opening a line of credit as soon as possible to establish your credit history and begin building your score.\n4.  **You're young and have no experience with credit.** Many young people don't have credit and may have no idea where to start. Since your credit history begins only when a creditor reports a new account to the credit bureaus, starting early is key to having a top score later in life. To establish credit as a young consumer, consider applying for a credit card and using it for essential purchases. Remember to pay all your bills on time, as payment history is the most important aspect of having a good score.\n5.  **You've only recently applied for credit for the first time.** If you're new to credit and just applied for a new account, it may take some time before you see a credit score. Since credit scores are based on your past experience managing debt, in many cases you'll need to make several payments or have your new account open for a period of time before a scoring algorithm will have enough data to establish your credit score. END
 TITLE: Why Don’t I Have a Credit Score? CONTENT: Why Do You Want a Credit Score?\n-------------------------------\nCredit scores are an important aspect of your financial health, and having a good score can mean improved access to loans and better interest rates and borrowing terms. Obtaining new credit is often dependent on a credit check, where a lender evaluates your borrowing history and decides whether to approve you for the loan. Having a good credit score in this process can help you get approved and also can help you get better terms and interest rates that will save you money over the life of the loan.\nPeople with higher credit scores can shop around with multiple lenders to find the loan with the best terms and the lowest rate. Lower interest rates can save you a lot of money over time: Reducing a mortgage loan's interest by just one percentage point can result in tens of thousands of dollars in savings.\nWhat Is a Good Credit Score?\n----------------------------\nOf the many scoring models—each of which uses a different algorithm to calculate a score—the FICO® Score☉ , which is most commonly used by lenders, has a range between 300 and 850.\nFor FICO® Scores between 300 and 850, the ranges are categorized as follows:\n*   **800 and above**: Exceptional\n*   **740 to 799**: Very Good\n*   **670 to 739**: Good\n*   **580 to 669**: Fair\n*   **579 and below**: Very Poor\nTo have a very good or exceptional score, you'll need to have a long and sustained history of making payments on time. Payment history is the most important aspect of calculating credit scores and any blemishes in it can negatively impact your scores. Other things that factor into your score include how long you've been using credit, how much debt you have, what types of credit you use and how often you apply for new credit. END
 TITLE: Why Don’t I Have a Credit Score? CONTENT: How to Establish Credit\n-----------------------\nThe good news is that there are plenty of ways to build credit if you've never had experience with it before:\n1.  **Apply for a Secured Credit Card**\nSecured credit cards are perfect for users trying to build a payment history from the ground up. They work like other credit cards when you make a purchase, but you must make a cash deposit when you open the account to back up your usage. That deposit, which is typically the same amount as your credit limit, is what \"secures\" the card.\nOtherwise, you use the card in the same way: Make purchases, pay them off by the due date and pay interest on any charges you don't pay off in full. If you don't make your payments, however, your secured deposit is deducted.\nTypically, you can use a secured card for a period of time to build up a credit history, after which you can convert the card to an unsecured option or apply for a regular credit card.\n2.  **Get a Cosigner on a Credit Card**\nYou can also apply for a credit card with a cosigner who has solid payment history. This is a good option for students who are just starting out and can get a card with their parents. However, the cosigner should know that if you do miss payments or carry a huge balance, their credit scores will also be affected.\n3.  **Apply for a Retail Store Card**\nThe first credit cards for some people are often retail store cards, which can be easier to qualify for and typically offer lower credit limits. They can also qualify you for discounts on purchases at that retailer. If you don't have much history with credit, retail cards can be a possible option for establishing a credit history, but they can also include some pitfalls, like high interest rates and fees.\n4.  **Get a Credit-Builder Loan**\nCredit-builder loans are solely designed to help you improve your credit score, so they function differently than other loans. Instead of giving you the loan amount up front, the lender sets it aside in a savings or certificate of deposit (CD) account.\nThen, once you've finished making payments, the lender gives you the funds, plus the interest accrued from the savings or CD account. Since the lender holds onto the cash from the beginning, many credit-builder loans offer decent interest rates.\nMake sure the lender reports your payment history to Experian or one of the other credit reporting companies so the loan helps you build your credit history.\n5.  **Become an Authorized User on Someone Else's Credit Card**\nAnother option is to piggyback off an already-open account as an authorized user instead of getting a cosigner. A parent, spouse, other family member or even a close friend can add you to their credit card account with a separate card. You will build a credit history based on the usage of that card, but the primary cardholder will be the one who must pay off any charges. If you're going with this method, be sure to establish rules with the primary cardholder regarding how you will use the card.\n6.  **Build a Credit History With Your Utility and Phone Payments**\nUntil recently, your utility and telecom bill payments only showed up on your credit reports if you didn't pay your bills and the accounts went to collections. Now, paying these bills on time can help you build credit—and raise your FICO® Score if you already have one—with Experian Boost™† . With Boost, you allow Experian to connect to your online bank accounts to identify your utility and telecom payments. You'll then verify which accounts you'd like to instantly add to your credit file. This may help you become scorable or, if you already have a credit score, you could see an instant score increase.\nIf you're not sure if you have a credit score, or want to find out what's in your credit history, consider getting a free copy of your credit report and scores from Experian so you can see exactly what is listed in your file. Checking your credit is a great first step to figuring out how to improve it, so the sooner you check the closer you'll be to raising your score over time. END
 TITLE: Can You Transfer a Parent Student Loan to a Child? CONTENT: How to Transfer Parent Student Loans to Your Child\n--------------------------------------------------\nStudent loan refinancing can offer a lot of benefits, one of which is the ability to transfer parent student loan debt to a child after they've graduated from college. There are a handful of lenders that offer this option, including:\n*   Advantage Education Loan\n*   CommonBond\n*   ELFI\n*   Laurel Road\n*   PenFed Credit Union\n*   SoFi\nThe process is similar to the regular refinancing process, except you won't apply to refinance the debt in your name. Instead, your child will apply to refinance the debt in their name. This means your child will need to agree to take on the debt and meet the eligibility criteria set by the lender to get approved.\nIn some cases, though, the parent may need to cosign the application. END
 TITLE: Can You Transfer a Parent Student Loan to a Child? CONTENT: Pros and Cons of Transferring a Parent Student Loan to a Child\n--------------------------------------------------------------\nDepending on the situation, having your child refinance your parent loans in their name can have a lot of benefits. For starters, it can free up a lot of cash flow you can use for other needs.\nNearly 1 in 5 student loan borrowers contribute nothing to their 401(k) plan, according to Fidelity. While lacking retirement savings is a problem for all generations, it's more urgent for parents who have less time to catch up.\nTransferring parent student loan debt to a child can make it easier for parents to prepare for retirement, pay off debt and achieve other important financial goals.\nIt also removes the debt from your credit reports, which reduces your debt-to-income ratio. If you're planning to apply for credit—especially a mortgage loan—reducing your debt load can give you a better chance at getting approved.\nThat said, if your child just graduated, they may not have the credit history or income to qualify to refinance the debt in their name. If your child doesn't meet the requirements, it might be necessary for you to cosign the application. This means the debt will still be on your credit reports, and you'll still be responsible for paying it if your child can't.\nAlso, if the loans are parent PLUS loans, the child won't have the same benefits that you get through the federal loan program, including access to student loan forgiveness programs, income-based repayment plans and generous deferment and forbearance plans. END
 TITLE: Can You Transfer a Parent Student Loan to a Child? CONTENT: What to Do if You Can't Transfer the Debt to Your Child\n-------------------------------------------------------\nIf your child doesn't qualify to refinance the debt in their name or they refuse to take on the responsibility, you may be stuck with the debt. Depending on the situation, though, there are some potential alternatives you can pursue:\n*   **Seek forgiveness.** If you qualify for the Public Service Loan Forgiveness or Teacher Loan Forgiveness programs, you may be able to get a portion or even all of the student loan debt forgiven.\n*   **Ask for assistance.** If your child is willing to help but can't qualify, you may ask them to make payments on your behalf or help with payments until their credit and income are in good enough shape to get approved for refinancing. Alternatively, you could check to see if your employer (or a government agency, depending on your career field) can provide loan repayment assistance.\n*   **Get on an Income-Contingent Repayment plan.** The Income-Contingent Repayment plan reduces your monthly payment to the lesser of 20% of your discretionary income or what you'd pay with a fixed payment on a 12-year repayment plan. The repayment term can be as long as 25 years, after which any remaining balance would be forgiven. If you need some relief and have parent PLUS loans, this type of plan can be a good way to get it. You'll need to consolidate your loans through the federal government to gain access to this income-driven repayment plan.\n*   **Get on an extended or a graduated payment plan.** Depending on how much you owe, you may qualify for a federal extended or graduated payment plan. These plans offer repayment terms up to 30 years, and payments that can be either fixed or graduated, which means they start out small and increase over time. You'll need to consolidate your loans to access these payment plans.\n*   **Request forbearance.** If you're experiencing financial hardship, it might make sense to apply for forbearance through your federal loan servicer or private lender, depending on the type of loans you have. Forbearance is a temporary solution, but it can give you the time you need to get your finances back on track.\n*   **Refinance student loans** **in your name.** If your child doesn't plan to take on the debt, refinancing the loans in your own name could help you score a lower interest rate, more payment flexibility and other benefits. Choosing this option typically means you'll lose certain protections and benefits afforded to federal student loan borrowers, so consider it carefully before proceeding. END
 TITLE: Can You Transfer a Parent Student Loan to a Child? CONTENT: Avoid Other Ways to Consolidate Parent Student Loan Debt\n--------------------------------------------------------\nTechnically, there are other ways to consolidate and pay down parent student loan debt. For example, you could use a home equity loan or line of credit (HELOC), or even a personal loan, to pay off student loans.\nHome equity loans and HELOCs may be tempting because they tend to offer low interest rates. But they require you to use your home as collateral, which could result in you losing your home if you fail to repay the loan. Also, these loans can come with expensive closing costs, which could neutralize your interest savings.\nRefinancing via a personal loan could also be tempting because these loans are generally unsecured. However, personal loans come with much shorter repayment terms than student refinance loans, which means higher monthly payments. They also tend to charge higher interest rates, which can put more strain on your budget.\nAs a result, it's best to avoid alternative consolidation options for parent student loans. END
 TITLE: Can You Transfer a Parent Student Loan to a Child? CONTENT: Cosigning the Refinance May Be Better Than Nothing\n--------------------------------------------------\nIf your child isn't ready to refinance your parent student loan debt in their name, cosigning the application to transfer the debt in their name may be better than keeping them solely in your name. Even if you have to make payments until your child is ready, doing this will at least set the process in motion.\nOnce your child can begin making payments, you'll have that monthly cash flow to use for other important things. And as soon as they can qualify to take on the debt themselves, they can apply to release you from the loan as a cosigner—if the lender offers this option—or refinance the debt with another lender to remove you from the loan.\nYou and your child should both monitor your credit regularly to stay on top of how the debt is impacting your credit history and whether you need to take steps to maintain a good credit score. Eventually, once your child has built their credit enough, they can take over the debt. You can get a free copy of your credit report from all three consumer credit bureaus (Experian, TransUnion and Equifax) through AnnualCreditReport.com. You can also check your FICO® Score☉ based on Experian data and your Experian credit report for free. END
 TITLE: What Is a Precomputed Interest Loan? CONTENT: Most loans use simple interest to determine the cost of borrowing. A simple interest arrangement puts a portion of each monthly payment you make toward the interest accrued since your last payment, with the remainder paying down your principal balance.\nWith a precomputed interest loan, however, the lender calculates how much you'd pay in interest over the life of the loan if you were just to pay the minimum amount due every month. It then adds that interest to your principal balance and you make your monthly payments as usual.\nPrecomputed interest loans aren't as common as simple interest loans, but this type of interest is used on some personal loans and auto loans, particularly with auto lenders that specialize in working with borrowers who have poor credit. END
 TITLE: What Is a Precomputed Interest Loan? CONTENT: How the Rule of 78 Impacts Your Loan\n------------------------------------\nTechnically, lenders aren't supposed to be able to charge interest that hasn't yet accrued, which is why you can save a lot on interest if you pay off a loan with a simple interest rate earlier than was originally agreed.\nWith precomputed loans, lenders use the Rule of 78 to calculate how much interest is earned on a loan with a 12-month term. The rule gets its name from the sum of adding up all the numbers of months in a year, one through 12.\nWith this rule, the lender can assign each month a share of the total interest owed, but in the reverse order. For example, if you have a 12-month personal loan with precomputed interest, the lender earns 12\/78 of the interest during the first month, 11\/78 of the interest during the second month and so on.\nThe same principle applies to longer-term loans as well, so if you have a 24-month loan, you'd add all the digits up from one to 24 to get 300. When interest is applied, 24\/300 of the total interest will apply the first month and so on.\nAs a result, if you pay off the loan very quickly, you may still get some interest savings because the lender didn't earn all of the interest it charged upfront. But those savings disappear fast because most of the interest is considered to be earned early on.\nThe Rule of 78 is controversial, and the U.S. government doesn't allow it on loans with a repayment term longer than 61 months. What's more, many states have banned the rule entirely. END
 TITLE: What Is a Precomputed Interest Loan? CONTENT: Pros and Cons of Precomputed Interest Loans\n-------------------------------------------\nAs long as you pay your loan on time and as scheduled with the minimum monthly payment, a precomputed interest loan isn't that different from a traditional simple interest loan. But if you pay off the loan early, the Rule of 78 means you'll end up paying more on a precomputed interest loan.\nFor example, let's say you borrow $5,000 with a 12-month repayment period, no origination fee and a 20% interest rate. The total interest due over that time is $558, which is added to the principal balance of the loan to make $5,558. Your monthly payment would be about $463.\nIf the loan were a simple interest loan and you paid it off in two months, you'd save roughly $484 in interest. But if it were a precomputed interest loan, you'd only save $393.\nHere's how that's calculated: Because you paid off the loan in two months, the lender uses the Rule of 78, adding up the digits for the first two months—12 and 11, which equals 23—then dividing that number by 78 to calculate how much interest it's earned. The answer is 29.5% of the precomputed interest of $558, which means you'll receive a refund of about $393.\nOver time, that refund drops significantly because the amount of interest the lender has earned is frontloaded. END
 TITLE: What Is a Precomputed Interest Loan? CONTENT: How to Avoid Precomputed Interest Loans\n---------------------------------------\nIf you don't have any plans to pay off your loan early, a precomputed interest loan may not present any issues. But if you'd rather avoid the potential problems that can arise when prepaying the loan, there are a few options to consider:\n*   **Pick a different lender.** If you have poor credit, your options may be limited. Depending on the type of loan you need, however, there may be plenty of alternative lenders from which you can choose. Be sure to compare other important features, such as the loan's interest rate and fees. While a precomputed interest loan isn't ideal, you typically won't be better off choosing another lender if the interest rate on their loan is much higher or the repayment term is shorter than you'd like.\n*   **Find a cosigner.** A creditworthy cosigner may be able to help you qualify for a better loan that doesn't require precomputed interest. Just be sure your cosigner understands what it means to cosign a loan and how it might impact their credit.\n*   **Improve your credit.** If you absolutely need the loan funds now, you may not have time to build your credit before you apply. But if it's not urgent, taking some steps to improve your credit can help you qualify for more quality borrowing options. Start by reviewing your credit report, which you can get for free through AnnualCreditReport.com. You can also check your FICO® Score☉ and review your Experian credit report for free through Experian. Reviewing this information can give you an idea of what you can address to potentially improve your creditworthiness. For example, it may mean getting caught up on past-due payments, paying down credit card debt or disputing fraud. END
 TITLE: What Is a Precomputed Interest Loan? CONTENT: What to Do if You Already Have a Precomputed Interest Loan\n----------------------------------------------------------\nIf you've already taken out a precomputed interest loan—knowingly or unknowingly—it may be best to stick with it. Refinancing is an option, but it could ultimately cost you more.\nLet's take another look at the previous example to run the numbers and see why. If you were to pay just the minimum payment on a precomputed interest loan during the first two months, your loan balance would be $4,632. With the $393 refund you'd get when you refinance, your total interest paid on the first loan would be $165.\nAssuming your new loan has a 20% interest rate and a 12-month repayment period—you may find it difficult to find a new loan with a 10-month term—your new monthly payment would be about $429, and the total interest would be $516. Add that to $165, and the total interest between the two loans would be $681 compared to $558 if you had simply stuck with the original precomputed loan.\nIn this situation, it's best to repay the loan as agreed. But it may be worth it to find another loan depending on your repayment plan and the interest rate you can get with the new loan. END
 TITLE: What Is a Precomputed Interest Loan? CONTENT: Read the Fine Print Before You Accept a Loan\n--------------------------------------------\nBefore you accept a loan, make sure you understand how interest is calculated. Also, plan to shop around and compare rates from multiple lenders to get a variety of options. Tools like Experian CreditMatch™ can help you shop around by making it possible to compare offers side by side based on your credit profile. END
 TITLE: 6 Ways to Save for Retirement When You’re Self-Employed CONTENT: Retirement Plans for Self-Employed Individuals\n----------------------------------------------\nThose who are self-employed have many options when it comes to saving for retirement, including some of the same savings vehicles open to employees, such as 401(k) plans. You can set up any of the plans below through a bank, mutual fund or brokerage.\n### One-Participant 401(k)\nSometimes called \"solo 401(k),\" \"individual 401(k)\" or \"uni-401(k),\" 401(k) plans for one participant work just like a workplace 401(k): You make pretax contributions and are taxed when you begin making withdrawals, which you can do starting at age 59½.\nYou can contribute to a one-person 401(k) twice: once as an employee of your own business and again as an employer. As an employee, you can put up to 100% of your annual earned income into the plan, up to a maximum of $19,500 in 2021 (those ages 50 and up can make an additional catch-up contribution of $6,500). You can then make a contribution as an employer of up to 25% of your maximum contribution limit. You'll need to use an IRS worksheet to calculate that limit. For 2021, the maximum employer contribution is $58,000 (not including catch-up contributions).\n### Traditional or Roth IRA\nTraditional and Roth IRAs differ in their eligibility rules, tax treatment and when money can be withdrawn without a tax penalty.\n**Traditional IRA**: Contributions to a traditional IRA are generally tax-deductible unless you or your spouse has access to a workplace retirement plan or your income is above a certain threshold. You pay taxes when you withdraw the money, which you can start doing at 59½. (In some situations, you can withdraw money earlier without penalties.) You must start withdrawing money at age 72.\nThere are no upper income limits on who can contribute to a traditional IRA, and you can contribute until age 70½. However, annual contribution limits are fairly low—just $6,000 for 2021 ($7,000 for those age 50 and up).\n**Roth IRA**: With most other retirement vehicles, you contribute pretax income that gets taxed when you withdraw the money in retirement. Roth IRAs work a bit differently: Contributions are made post-tax, but can be withdrawn at any time, tax-free. Withdrawn earnings are generally subject to taxes and penalties if you are under 59½ and have had the account less than five years, except in certain situations. Once you're 59½, they can be withdrawn tax-free too.\nYou can contribute to a Roth IRA your entire life and never have to withdraw money from it—you can leave it to your heirs.\nFor 2021, the maximum contribution to a Roth IRA is $6,000 ($7,000 for those ages 50 and up). There are other financial restrictions: You can't contribute to a Roth IRA if you have a modified adjusted gross income (AGI) of $208,000 or more (if married) or $140,000 or more (if single). Your maximum contribution is reduced if you're married with a modified AGI of at least $198,000 but less than $208,000, or single with a modified AGI of at least $125,000 but less than $140,000.\n### Simplified Employee Pension (SEP)-IRA\nAn SEP-IRA is an IRA designed for self-employed people. For 2021, you can contribute up to 25% of your net earnings from self-employment or $58,000, whichever is less. (You'll need to do some calculations to determine your contributions.) Contributions are tax-deductible.\nSEP-IRAs have higher contribution limits than many retirement plans, so you can save faster, but they don't allow catch-up contributions.\n### Savings Incentive Match Plan for Employees (SIMPLE) IRA\nIf you received at least $5,000 in compensation from your business in each of the previous two years, you can make pretax contributions to a SIMPLE IRA. As of 2021, up to $13,500 of your net earnings from self-employment can go into the plan. (If you're 50 or older, you can put in an extra $3,000.) In addition, you can either contribute up to a 3% match of your net earnings from self-employment, or make a fixed contribution of 2% of net earnings from self-employment that don't exceed $290,000 for 2021.\n### Other Investment Options\nOnce you have your retirement savings on track and a flush emergency fund, you may want to consider making other investments, such as stocks, bonds, mutual funds or exchange-traded funds, or real estate investment trusts (REITs).\nNon-retirement investment accounts let you invest as much money as you want, depending on your budget and the level of risk you're comfortable with. If you're a confident investor, you can open an online brokerage account and manage your own investments, or have a financial advisor or robo-advisor handle it. END
 TITLE: 6 Ways to Save for Retirement When You’re Self-Employed CONTENT: How Much Money You Should Have Saved at Every Age\n-------------------------------------------------\nAre you on track to have enough saved for retirement? Since expenses generally decline in retirement, investment company Fidelity suggests your nest egg should be able to replace 45% of your pre-retirement income. However, according to the National Institute on Retirement Security reports, Social Security only replaces about 40% of your pre-retirement income. Some experts even recommend saving enough to cover 70% to 90% of your preretirement income.\nIn general, here's what Fidelity recommends you should have saved at every age:\n*   By age 30: The equivalent of your current annual salary\n*   By age 40: Three times your annual salary\n*   By age 50: Six times your annual salary\n*   By age 60: Eight times your annual salary\n*   By age 67 (the age at which you can start collecting full Social Security benefits): 10 times your annual salary\nFidelity also advises putting 15% of your gross annual income into retirement savings and investing half of that savings in stocks. Depending on your age, when you hope to retire and your desired retirement lifestyle, you may need to save more or less than the standard recommendations. For example, if you're 40 years old or older, consider upping your contribution to 20% of your gross annual income. END
 TITLE: 6 Ways to Save for Retirement When You’re Self-Employed CONTENT: Plan Now for a Secure Retirement\n--------------------------------\nSelf-employment puts you in control of your life—but it could require some extra legwork when securing your financial future. The earlier you start saving for retirement, the longer your money will have to build compound interest. Making a financial plan, by yourself or with help from a financial advisor, can help you prepare for your golden years and create a budget to save for the future.\nReducing debt and maintaining a good credit score can also help ensure smooth sailing in retirement. You can get your credit report for free from all three consumer credit bureaus through AnnualCreditReport.com. You can also check your credit report and FICO® Score☉ based on Experian data for free through Experian. Keeping close tabs on your credit helps make sure you're prepared for any borrowing you want to do in the future. Many retirees want to buy or rent a new home, use credit cards to travel or pay off medical bills. Good credit can make it easier to achieve these and other financial goals. END
 TITLE: Should I Buy a New Car or a Used Car? CONTENT: Benefits of Buying a New Car\n----------------------------\nBuying new instead of used isn't for everyone. If you have the budget, however, there are several pros to keep in mind:\n*   **Better reliability:** Newer cars tend to be more reliable than older cars because they don't have a lot of miles on the odometer and no wear and tear on the engine or other key parts. While it's possible that you'll buy a car that has factory defects, most new cars come with a manufacturer's warranty that will cover certain repairs if you run into issues.  \n*   **Lower interest rates:** The average interest rate on a new car loan was 4.12% in the first quarter of 2021, according to Experian's State of the Automotive Finance Market. In contrast, the average rate on a used car loan was 8.7%. Manufacturers often offer financing deals on new vehicles as a way to incentivize purchases—some go as low as 0% APR for buyers with excellent credit.\n*   **Better driving experience:** When you buy a new car, you'll typically get the most up-to-date technology and innovation for an improved driving experience—not to mention that new car smell.\nBenefits of Buying a Used Car\n-----------------------------\nAlthough there are some clear advantages to buying new, there are also some solid reasons to consider buying a used car instead:\n*   **Lower cost:** Vehicles rapidly depreciate once they're sold, which means used cars are generally less expensive to purchase. That lower sales price also typically translates to lower insurance rates. And since the vehicle's previous owner was the one to bear the massive 20% depreciation new cars typically experience during the first year they're on the road, you won't have to worry as much about becoming upside down on your auto loan as your vehicle loses value. If your budget is tight or you simply don't want to spend much money on your next vehicle, a used one may be the ticket.  \n*   **High-quality options are available:** New cars are generally more reliable than used ones, especially with a warranty backing them, but that doesn't mean you can't find a solid used car. Many dealerships offer certified pre-owned vehicles, which means they've been thoroughly inspected and refurbished to meet stringent standards of quality and reliability. Some automakers even offer a warranty on these cars. If you shop around enough, it's easy to find a used car that isn't a clunker.\n*   **Faster payoff:** If you need an auto loan to help you buy your car, you could opt for a shorter repayment term and still save money on a monthly basis compared with a new car. And if you decide to get a longer repayment term to lower the monthly payment, the sting of interest costs won't be as painful. END
 TITLE: Should I Buy a New Car or a Used Car? CONTENT: When it comes to buying new or used, there are pros and cons to both. For some people, certain disadvantages can be a deal-breaker, especially when it comes to their budget. But it's important to apply the pros and cons to your situation to determine the best fit for you.\nHere are some situations where it might make sense to buy new:\n*   **You can afford it.** Budget issues are one of the biggest reasons people don't buy new cars, and because they depreciate so much in the first year alone, you'll need to know that you can afford to cover any negative equity you might have if the vehicle gets totaled. Gap insurance can help protect you in this case, but that's another added cost to consider.  \n*   **You want the latest and greatest.** Automotive technology has made great strides in recent years with the addition of safety features like lane-keeping assist and collision avoidance sensors as well as cutting-edge self-driving functionality. This may be appealing to you, or maybe owning a new vehicle is simply an important part of your lifestyle. If these are your priorities, buying new may be worth the extra costs.\n*   **You want fewer worries.** Even certified pre-owned cars can come with issues. If they arise after the short warranty period expires, you're on the hook for repairs. With a new car, you won't have to worry as much about reliability, and you have more options if something does go wrong.\nIn contrast, here are some scenarios where you may decide to buy used instead of new:\n*   **You want to save money.** Even if you can afford a new car, you may want to put that extra cash flow toward financial goals such as building your emergency fund or saving a down payment on a house. If you want to avoid high monthly payments and insurance premiums, consider buying a used car.  \n*   **You have time to do your research.** When you're buying used, it's a good idea to vet a vehicle thoroughly before buying it. That can include looking up the vehicle history report, requesting service records and taking it to a mechanic for an inspection. You'll also want to compare similar options on the market for the same model because prices can vary and some drivers treat their vehicles better than others. If you have the patience and willingness to go through this process, buying the right used car can be a great option.\n*   **You want to pay with cash.** It's not unheard of for someone to buy a brand new car with cash, but it's more commonly done with used vehicles. If you want to avoid an auto loan, you'll have an easier time finding a used car within your budget. END
 TITLE: Should I Buy a New Car or a Used Car? CONTENT: How Does Buying a Car Affect Your Credit Score?\n-----------------------------------------------\nIf you're planning on buying your next car with cash, the transaction won't impact your credit score at all (unless that cash comes from a loan). If you're financing a new or used car with an auto loan, it can affect your credit in a few ways.\nFor starters, when you apply for an auto loan, the hard inquiry lenders make on your credit reports has the potential to decrease your credit scores temporarily. This impact is typically small and short-lived, and shouldn't be a big concern for most borrowers. If you plan to apply for multiple auto loans in search of the best rate, submitting applications over a period of less than two weeks will minimize the score impact.\nAdding more debt to your plate can also impact your credit, especially if you didn't have a similar amount of debt on your previous vehicle. If you make your payments on time, though, a car loan can help improve your credit over time.\nBut if you miss a payment by 30 days or more or default on the loan, it could have a drastic negative impact on your credit score. As such, it's crucial that you buy a car that you know you can afford. If you're struggling to keep up with payments, contact your lender to discuss your options before you miss a payment. END
 TITLE: Should I Buy a New Car or a Used Car? CONTENT: Check Your Credit Before You Buy a Car\n--------------------------------------\nIf you're financing your next vehicle, it's important to make sure your credit is ready. Auto lenders may use credit scores based on reports maintained by any one of the three credit bureaus (Experian, TransUnion and Equifax), and you can get these reports for free through AnnualCreditReport.com. The higher your credit score, the better chances you have of scoring a low interest rate. You can check your FICO® Score☉ for free through Experian to get an idea of where you stand, and review your credit report to see if there are specific areas you can address.\nIf your credit isn't where you want it to be, and you can afford to wait to buy, consider taking some time to improve your credit before you start the car-buying process. That time and effort can ultimately save you hundreds or even thousands of dollars on interest. END
 TITLE: Is Now a Good Time to Buy a Car? CONTENT: Is Now the Right Time to Buy a Car?\n-----------------------------------\nFor many people, right now is not a great time to buy a car. Decreased production due to the pandemic—among other factors—has led to shortages for many popular new vehicles. At the same time, there's increased demand from businesses and consumers. The result is high prices and limited selection.\nAuto loan balances were already on the rise in 2020 compared with the previous year. Borrowers in about a third of the country saw an average balance increase of over 5% from 2019 to 2020, according to an Experian auto loan debt study. These average balances may go even higher as vehicle prices rise.\nSome people may need or want to buy a car right now, regardless of the current market. Or, you may find that despite the potential drawbacks, it's actually a good time based on your personal circumstances. If you're considering buying a car in the near future, take a look at the pros and cons first. END
 TITLE: Is Now a Good Time to Buy a Car? CONTENT: Why Now May Not Be the Right Time to Buy a Car\n----------------------------------------------\nIf you don't need a new car right now, waiting might make sense. That said, it's not clear how long it'll take for prices and inventory to return to normal.\n### Prices Are Sky High\nMismatched supply and demand has led to high prices for new and used cars alike.\nOn the demand side, some people are flush with cash and looking to buy a vehicle for a return to commuting or vacations they may have put off during the pandemic. Additionally, rental companies that sold off fleets during the pandemic are also trying to fill up their lots to meet vacationers' needs.\nOn the supply side, many auto manufacturers are dealing with shortages and delays. In particular, there's a microchip shortage that may last for months—and potentially much longer. Hundreds of thousands of vehicles are being delayed due to the lack of chips. In some cases, manufacturers have vehicles almost completely assembled, but they're sitting in lots waiting for the chips to be installed. According to Car and Driver, the models most affected by the shortage include the Ford F-series, the Jeep Cherokee and the Chevrolet Equinox, though many other makes and models have been impacted.\nA June 2021 forecast from J.D. Power and LMC Automotive shows the average price for a new car is expected to be $38,088. That's about 10% higher than last year and about 14% higher than in 2019.\n### Limited Availability\nIn addition to pushing prices up, the increased demand and limited supply may make it difficult to find the exact vehicle you want. This is especially true if you're looking for a new truck or SUV, which tend to be more popular than other vehicle models.\nIt can also be difficult to find affordable used cars today. Consumers may be turning to the used market when they can't find a new vehicle they like or can afford. Rental car companies are even snatching up used cars—a complete shift from the standard practice of selling off the older vehicles in their fleets.\nThere have also been fewer repossessions, which further limits the availability of used cars. And the Great Recession is having a lingering effect, as there are fewer available used cars from the 2009 to 2013 period.\n### Limited Dealer Incentives\nDealers often offer incentives to customers buying new cars, such as low-rate or 0% financing offers, lease specials and cash discounts. Generally, you need to finance the purchase with the manufacturer's financing arm and have good to excellent credit to qualify.\nBut even those who would usually qualify may find there aren't as many incentives available. J.D. Power's June 2021 report shows average incentives per unit are expected to be $2,492—a nearly $1,500 decrease from June 2019. END
 TITLE: Is Now a Good Time to Buy a Car? CONTENT: Why Now May Be a Good Time to Buy a Car\n---------------------------------------\nIf you know you'll need a new car within a few months, it might make sense to act sooner than later.\n### You May Have More Options Now Than Later\nWhile there's limited supply today, there may be even fewer options in the coming months. If you have your eyes set on a specific new vehicle, grabbing it now may be the best option. However, if you're open to various makes and models, don't feel pressured to act quickly.\n### Financing May Be Affordable\nYou might not make a lot of headway with negotiations right now, but there are some financing incentives available for new cars. If you don't qualify for 0% financing or aren't planning on financing a new car, you may still want to lock in a low rate just in case your needs change.\n### You Have a Used Car to Sell\nHigh prices for used cars can work in your favor if you have a vehicle to sell or trade in. You may even get a great offer from a dealership, breaking the traditional rule of thumb that private sales are best. With such a high demand from used-car buyers, be sure to get at least several offers. END
 TITLE: Is Now a Good Time to Buy a Car? CONTENT: What to Look for When Buying a Car\n----------------------------------\nIf you're just starting to think about buying a car, here are a few things you'll want to consider. (Also see our step-by-step checklist if you're buying a new car.)\n*   **New or used**: You'll have to navigate through the limited supply whether you're buying new or used. Buying a used car can often save you money, even if used cars are more expensive than they used to be.\n*   **Buy or lease**: Another option may be to lease a vehicle. Leasing often isn't considered a financially prudent option, but leasing a car for a few months or a year and then looking for a new car when the market settles might make sense if you need a car right now.\n*   **Vehicle type**: If you're open to a wide range of makes and models, you'll have a much easier time buying a vehicle right now. If you can take advantage of tax credits and rebates, a hybrid or electric car could be a good option.\n*   **Features and reviews**: Whether you're buying used or new, consider the features that come with the vehicle and reviews about the specific make and model. If you're buying used, you can review a vehicle history report.\nFinally, buying cars online has become more common. Dealers may even deliver a vehicle to your door for a test drive or after you make a purchase. But do your homework first and watch out for online car-buying scams. END
 TITLE: Is Now a Good Time to Buy a Car? CONTENT: How Does Buying a Car Impact Your Credit?\n-----------------------------------------\nBuying a car will only impact your credit if you finance the purchase. Often, you'll see multiple hard inquiries as you shop for a car loan. But don't worry: Many credit scoring models will count them as one inquiry if they occur within a 14-day period. Then, the new car loan will appear on your credit report as well.\nWhile you might see an initial dip in your credit scores, making your payments on time can help you build positive credit. If you want to check your progress, you can sign up for free Experian credit report monitoring online. END
 TITLE: Is Now a Good Time to Refinance Your Student Loans? CONTENT: How Does Student Loan Refinancing Work?\n---------------------------------------\nStudent loan refinancing is the process of taking out a new loan with better terms and using it to pay off your existing private or federal student loans. If you're paying a high interest rate on student loans, for example, refinancing could offer lower monthly payments and long-term savings on interest charges.\nWhether to refinance federal loans is something to consider carefully, even if you're able to get a lower rate. Refinancing turns them into private loans that don't qualify for the same perks, such as student loan forgiveness, forbearance and income-driven repayment programs.\nPlus, most federal student loans currently qualify for a pause in payments and interest until at least September 30 thanks to the CARES Act and subsequent extensions.\nIf you want to keep your federal loan perks but combine multiple loans into one payment, a Federal Direct Consolidation Loan through the Department of Education could be a better alternative. This option may not provide as much interest savings since the interest rate on the new loan will be the average rate of the loans you consolidate. But it is a way to simplify payment without losing government perks. END
 TITLE: Is Now a Good Time to Refinance Your Student Loans? CONTENT: How to Apply for Private Student Loan Refinancing\n-------------------------------------------------\nIf you are considering refinancing, know that your credit score is an important factor private lenders consider to determine if you qualify and at what interest rate. The higher your credit score, the better the interest rate you can potentially obtain, which can lead to greater overall savings.\nIf your credit score is less-than-perfect, applying with a cosigner could help you secure a better rate. Your cosigner may not have to stick around on the loan forever, either. Some lenders offer cosigner release if you make a certain number of payments and meet other credit criteria.\nMost private lenders have an easy online application process. You may even be able to prequalify beforehand to check rates without a hard inquiry that can damage your credit scores. Then you can complete the full application if you like one of the offers. Once approved, funds are disbursed to pay off your old loans, and you start making payments to the new lender. END
 TITLE: Is Now a Good Time to Refinance Your Student Loans? CONTENT: What are the Pros and Cons of Refinancing Your Student Loans?\n-------------------------------------------------------------\nLike any financial move, there are pros and cons to refinancing your student loans. Here are the advantages and disadvantages:\n### Pros\n*   Refinancing may lower your interest rate and monthly payment.\n*   There are usually no application, origination or prepayment penalty fees.\n*   Some private lenders offer borrower benefits, such as forbearance, if you face financial hardship or payment deferment if you decide to go back to school.\n### Cons\n*   You likely need a high credit score to qualify for a rate that makes refinancing worthwhile.\n*   Refinancing federal student loans will make you ineligible for generous federal loan benefits such as income-driven repayment and grace periods.\n*   If the government decides to forgive student debt, private loans may not be eligible. END
 TITLE: Is Now a Good Time to Refinance Your Student Loans? CONTENT: When Should You Consider Refinancing Your Loans?\n------------------------------------------------\nIf you're thinking about refinancing your student loans, here are some instances where student loan refinancing could make sense:\n*   You have a stable job and income.\n*   You want a shorter loan term and can afford to pay off your loans early.\n*   You have a high credit score (or you have access to a willing cosigner with a high score).\n*   You are not considering working as a teacher or in a public service profession that might qualify for Public Service Loan Forgiveness.\nIf the scenarios above apply to you, refinancing could help you pocket savings. Say you have a student loan balance of $20,000, you have four years remaining on the term, the average interest rate is 8.5% and you make payments of $500. Refinancing to an interest rate of 4% could potentially save you $2,324.11 in total interest.\nHow much you'll save from refinancing depends on the interest rate and loan term you choose. If you can't qualify for a better rate, refinancing probably won't make sense, and it can be risky if your income isn't stable since you will no longer have government perks to fall back on. END
 TITLE: Is Now a Good Time to Refinance Your Student Loans? CONTENT: Do You Need a Good Credit Score to Refinance Your Student Loans?\n----------------------------------------------------------------\nGood credit or better is generally necessary to qualify for student loan refinancing. That's because a high credit score shows lenders that you are a low-risk borrower, and low-risk borrowers are typically eligible for approvals that come with better interest rates.\nThat said, having less-than-perfect credit doesn't automatically mean you can't refinance your student loans. You may be able to qualify with a cosigner. If you don't have a cosigner who agrees to do you that favor, you could take steps to improve your credit before applying.\nThe first step toward increasing your credit scores is to check your credit and see where you stand. This will help you figure out where you need to improve and provide some guidance on where to start. Experian offers a free FICO® Score☉ that includes a breakdown of factors impacting your credit. With this information, you can come up with a score improvement plan.\nWhen you are ready to refinance student loans, be sure to shop around and compare offers with multiple lenders since that will help you find the best possible rates and terms. END
 TITLE: Do Rejected Credit Applications Affect Your Credit Scores? CONTENT: What to Do After Being Rejected for Credit\n------------------------------------------\nGetting rejected is never fun, but you can take steps to avoid denials and improve your chances next time.\nFirst, try to find out why your application was denied. It could have been due to many factors, including your credit score, credit history, income or employment status. Or, some creditors may have unique rules that lead to the denial.\nWhen you are denied credit, the lender is required by law to send you an adverse action letter explaining why. It must also provide instructions on how you can receive a free copy of the credit report it used to make its decision. If the lender used your Experian credit report, you can request a free report at Experian's Report Access page.\nDepending on the reason, you may want to try applying for a loan or credit card from a different issuer. Or, if you continue to hit roadblocks, you may want to take a step back and focus on improving your credit and paying off debt first. While some creditors offer loans for people with bad credit, the loans tend to have high interest rates and fees, and may be best left as an emergency option. END
 TITLE: Do Rejected Credit Applications Affect Your Credit Scores? CONTENT: Does Denied Credit Show Up on Your Credit Report?\n-------------------------------------------------\nYour credit report doesn't say whether your applications were approved or denied. But it could contain hard inquiries—records of when creditors reviewed your credit reports while making lending decisions.\nFor example, you might apply and get approved for a handful of auto loans when shopping for a car, but you'll only take the loan with the best rate and terms. Or, you might apply for a loan and then change your mind after reviewing the lender's offer. In either case, the hard inquiries didn't lead to new accounts even though you were approved.\nAlso, a hard inquiry only appears on the credit report the creditor checked. Creditors may check your credit reports from one or more of the major credit bureaus (Experian, TransUnion and Equifax). If the creditor only reviews your Experian credit report, the inquiry would be on your Experian report but not your Equifax or TransUnion credit reports. END
 TITLE: Do Rejected Credit Applications Affect Your Credit Scores? CONTENT: How Does a Hard Inquiry Affect Your Credit?\n-------------------------------------------\nHard inquiries remain on your credit report for up to two years and could have a minor negative impact on your credit scores. The impact often decreases over time, and generally doesn't last more than a few months. But you might experience larger score drops if you're new to credit or have multiple hard inquiries during a short period.\nWhile each new application you submit could lead to another hard inquiry, you can (and should) shop for loans from different lenders to try to get the best rate. Recognizing that this is savvy rather than risky behavior, credit scoring models typically consider multiple hard inquiries as one inquiry if they are for the same type of loan and occur within a specific rate-shopping window.\nFor example, FICO will \"deduplicate\" (or treat as one inquiry) student loan, auto loan and mortgage hard inquiries that occur within a 14- to 45-day window (depending on the type of FICO® Score☉ ). FICO® Scores also won't consider hard inquiries from these types of loan applications that occurred within the last 30 days.\nVantageScore®, another credit scoring company, uses a 14-day shopping window and slightly different rules. It deduplicates hard inquiries on a wider range of account types, including credit cards and personal loans, but doesn't have the 30-day buffer period.\nAlso, know that a credit check could lead to a soft inquiry rather than a hard inquiry, and these never impact your credit scores. Soft inquiries can occur when someone checks your credit for a reason other than approving or denying a credit application, such as when you check your own reports or apply for a prequalification or preapproval. END
 TITLE: Do Rejected Credit Applications Affect Your Credit Scores? CONTENT: You Can Find a Credit Card Without Impacting Your Credit\n--------------------------------------------------------\nIf you've gotten rejected, know that hard inquiries often only have a minor impact on credit scores and the denial won't appear in your credit reports. To avoid unnecessary additional hard inquiries and denials, during your next round of applications, start with creditors that offer preapprovals or prequalifications with a soft inquiry.\nWith Experian CreditMatchTM, you can get personalized credit card and personal loan offers based on a soft inquiry of your Experian credit report. And if you're curious about your credit history, you can also sign up for your free Experian credit report. END
 TITLE: Can People With Excellent Credit Be Denied? CONTENT: Why You Could Be Denied With an Excellent Score\n-----------------------------------------------\nIn addition to your credit rating, creditors look at a variety of factors to determine your creditworthiness. Here a few of the common scenarios that could get in the way of your approval:\n*   **Insufficient income**: While income isn't factored into your credit scores, some lenders do have minimum income requirements. Earning less than the minimum could signal to a lender that you may have a difficult time covering a new debt payment.\n*   **High debt-to-income ratio (DTI)**: This calculation looks at how high your debt payments are in comparison to your income. Even if you make good money, high monthly debt payments could indicate financial instability and may cause lenders to view you as a risk.\n*   **Employment history**: A short or unstable employment history may be a deterrent to creditors. Some lenders even want to see that you've been consistently employed for at least two years, and may want to verify your employment before approving your loan application.\n*   **Savings or cash assets**: Lenders may want to see that you have savings or other cash available. Showing that you have money set aside assures creditors that you have the means to make your loan payment if an unexpected expense comes up.\n*   **Other negatives**: Some negative items on your credit reports have little or no impact on your scores, but are still a red flag for creditors. Unpaid debt, for example, can be a cause for denial. Some lenders may ask you to pay off old collections before approving you for a new loan. END
 TITLE: Can People With Excellent Credit Be Denied? CONTENT: What Happens When You're Denied Credit?\n---------------------------------------\nApplying for a loan or credit card can have a temporary, small negative impact on your credit scores when the lender checks your credit, but being denied does not hurt your credit at all—or even appear on your credit report.\nIf your application for a new loan or credit card is not approved, you'll have the opportunity to learn why. The creditor is required to give you an adverse action letter, which includes a brief explanation of why you were not approved. It should also include information on how to get a free copy of the credit report the lender used to make its decision. This gives you a chance to see what the creditor saw, and can be a good opportunity to address any possible inaccuracies on your credit report or take steps to improve your credit.\nIf your letter doesn't tell you how to pull your free report, you can request it directly from the reporting agency named in your letter. For instant access to your Experian report, you can submit a request through Experian's Report Access page. END
 TITLE: Can People With Excellent Credit Be Denied? CONTENT: What's Your Next Step?\n----------------------\nBeing declined doesn't mean you'll never be able to borrow money or open a credit card again. The best way to improve your chance of approval is to make sure you understand and address the reason you were denied.\nDepending on your circumstances, you may want to take one of the following steps:\n*   **Search for a different creditor.** Not all creditors have the same requirements for approval. Shopping around might help you find other, more flexible lenders. But be cautious. If you don't address the reason for past denials, you may only be approved for credit with high interest rates or restrictive terms.\n*   **Find a cosigner.** Having a cosigner can help your chances of being approved next time you apply. A cosigner doesn't need to have excellent credit, but they do have to take on a big responsibility. This includes being fully responsible for your debt payments if you stop paying.\n*   **Give it time.** If your debt-to-income ratio is high or you're facing other financial difficulties, you might need some time to address the problem. Solutions could include saving cash instead of using a loan for your purchase or taking on a temporary side job.\n*   **Get outside assistance.** If you're already having difficulties paying your debt, a new loan or credit card might not be the best solution. Instead, try asking your creditors for help. In some cases, they may be willing to reduce your payments or your interest rate if it helps you stay current on the account. If creditors can't offer the help you need, reach out to an approved credit counselor to explore all of your options. Together you can determine the best plan for managing your debt. END
 TITLE: Can People With Excellent Credit Be Denied? CONTENT: Moving Forward\n--------------\nBeing denied credit when you have excellent credit scores can be a shock, and throw a wrench into your plans. Using your adverse action letter to address the issues that caused the denial may not help this time, but could put you on a path to approval the next time you apply for credit.\nAs you work to improve your financial situation, consider monitoring your credit regularly to ensure your scores stay high. Experian's free credit monitoring service allows you to check your credit report and scores regularly for free, and alerts you when there are changes to your credit report. Maintaining an overview of your credit and finances can help you move forward in the right direction. END
 TITLE: Does a Declined Loan Appear on Your Credit Report? CONTENT: Credit Denials Do Not Show Up in Your Credit Report\n---------------------------------------------------\nIn addition to personal information such as any names you've used with lenders, current and former addresses, and your date of birth, consumer credit reports contain a wealth of information about your relationships with lenders. This includes account balances, credit limits, loan amounts, payment histories as well as two types of inquiries—hard and soft.\nSoft inquiries show up when, for example, you view your own credit report or a lender with whom you already do business checks your credit report as part of an account review. You may also see a soft inquiry appear as a result of a lender sending you a preapproved offer for a loan or credit card. Soft inquiries do not have any impact on your credit scores.\nHard inquiries, on the other hand, are related to applications you have made for credit or services. They may have some impact on your credit, although it is temporary and usually minimal.\nBoth hard and soft inquiries are automatically removed from credit reports after two years.\nCredit reporting agencies such as Experian are not notified about whether your application for credit is approved or denied, so credit reports do not maintain a record of credit denials. Nor do they include a record of credit approvals, for that matter. But those who review your credit report can see who else has done the same for lending purposes. Lenders and credit scoring models may view frequent inquiries as increasing a borrower's credit risk, whether or not the inquiries result in a new account on a report. END
 TITLE: Does a Declined Loan Appear on Your Credit Report? CONTENT: How Does a Hard Inquiry Affect Your Credit?\n-------------------------------------------\nA hard inquiry contains two critical pieces of information: the date of the inquiry and the name of the inquiring company. So, for example, if you applied for an auto loan with Chase on June 20, 2020, then you'd expect to see a \"Chase Auto\" inquiry on or about that date.\nThe scoring models published by VantageScore® and FICO® both consider hard inquiries in their calculations and may ding your scores as a result. But you shouldn't assume that all hard inquiries will have a measurable impact—some may, some may not. If your credit scores are affected, the impact of an individual inquiry is minimal. Further, even though hard inquiries may remain on your credit reports for up to two years, credit scoring models do not see or consider them for that entire period of time.\nThe impact of multiple hard inquiries is minimized if they're conducted in a short period of time from the same types of installment lenders. Multiple inquiries from the same types of lenders, such as mortgage, student loan or auto lenders, are generally caused by a consumer shopping around for the best interest rates and terms and will be counted as one inquiry in most credit score calculations. END
 TITLE: Does a Declined Loan Appear on Your Credit Report? CONTENT: Do FICO® and VantageScore Consider Hard Inquiries Differently?\n--------------------------------------------------------------\nOf all the risk factors in both credit scoring systems, credit inquiries play the smallest role. For example, the FICO® Score☉ model counts inquiries as just one part of a category worth no more than 10% of your score. In VantageScore's credit scoring models, they are the \"least influential\" of all scoring metrics.\nSince rate-shopping is expected, both models take steps to account for it:\n*   **FICO®** ignores auto, student loan or mortgage inquiries that are less than 30 days old. After 30 days, those inquiries are considered in score calculations but are viewed together as one inquiry for scoring purposes if they appear on your report within the same 45-day period.\n*   **VantageScore** counts inquiries that occur within 14 days of one another as a single inquiry.\nBoth scoring models ignore any inquiries that are older than 12 months. Soft inquiries are never considered when calculating a credit score. END
 TITLE: Does a Declined Loan Appear on Your Credit Report? CONTENT: What to Do if Your Application Is Denied\n----------------------------------------\nIf you do apply for a loan or credit card and the lender denies your application, they are required to send you a denial letter called an adverse action notice.\nThis letter will typically state the reason or reasons why you were declined. If you were declined due to your credit score or the information included in your credit report, the letter should provide a list of the reasons, or risk factors, that contributed to the decision. This information is meant to help you better understand why your application was denied.\nIf a credit report was used in the lending decision, the letter must identify the source of the credit report information used and an explanation of your rights. If your credit score was a factor in denial, the letter will include it as well as the date it was calculated and the range of possible scores.\nThe first step you should take after you've been denied credit is to get a copy of your credit report. Lenders must provide instructions for requesting a free report from the credit bureau they used in the adverse action notice they send to you. Looking over your credit report can help you better understand your credit situation, including your risk factors, and hopefully help you devise a strategy to improve your scores.\nYou can also check your FICO® 8 credit score based on Experian data for free. Your credit scores are influenced only by the information on your credit report. The factors that impact your scores the most include your payment history, your credit card debt and the age of your credit report. END
 TITLE: Does a Declined Loan Appear on Your Credit Report? CONTENT: How to Improve Your Credit Before Applying for New Loans\n--------------------------------------------------------\nIf your loan application was denied because of poor credit, then you should consider some of the many ways to improve your credit before you reapply. Keep in mind that there are many paths to a higher credit score, so your credit improvement strategy is going to be unique to your situation. There is, however, some general advice that does apply to everyone.\nThe most important thing you can do is avoid negative information from being reported on your credit reports by making all of your scheduled payments on time as agreed. If you are having financial trouble and worry you may miss a payment, reach out to your lender as soon as possible to see if they can offer any relief options that can help you avoid credit harm.\nIf excessive credit card debt is contributing to your lower scores, then your strategy should be to begin aggressively paying it down. This might mean forgoing purchases and redirecting the money toward paying off your debt or looking for ways to increase your income. The amount you owe (as well as your credit utilization) is a very important factor in both FICO® and VantageScore models, and reducing your debt balances can help you make progress toward higher scores. END
 TITLE: Does a Declined Loan Appear on Your Credit Report? CONTENT: Credit Rejection Isn't a Mark Against You\n-----------------------------------------\nA credit card or loan rejection will not be recorded on your credit report, nor will it directly impact your credit scores. Credit applications will likely result in a hard inquiry, but their impact, if any, is usually minor and will not be considered by credit scoring models after one year.\nTo improve the chances that you'll be approved for credit the next time around, you may want to take a look at improving your credit. For example, if high credit card balances are holding back your credit scores, you may want to consider taking out a consolidation loan and paying off your credit card debt. This will not only result in a lower utilization ratio, but you can also convert high-interest credit card debt to less-expensive installment debt.\nAnother way to potentially improve your score is to have your phone and utility accounts added to your Experian credit report using the free Experian Boost™† tool. Boost adds on-time payment history for accounts that otherwise wouldn't show up on your credit report, and may improve your scores instantly. END
 TITLE: 6 Things You Should Do If You’ve Been Denied Credit CONTENT: 1\\. Review the Reason for the Denial\n------------------------------------\nIf a lender denies you credit because of information found in your credit file, the Fair Credit Reporting Act and Equal Credit Opportunity Act require them to tell you why.\nThis explanation will come in the form of an adverse action notice that can be provided orally, electronically or in writing. If provided via a letter, you'll receive it within seven to 10 business days of your application denial.\nThe adverse action letter will explain why you were denied and include helpful resources such as the score used to make the decision and the name of the bureau that provided the credit report used to calculate the score. Knowing this information can help you understand your credit situation and what you should do to improve your credit before you apply again.\nDepending on the situation, your letter may list up to five reasons for denial, which may include:\n*   Too much debt relative to your income\n*   Credit score is too low\n*   Late payments\n*   Credit history is too limited\n*   Too many recent credit applications\n*   High credit utilization ratio\n*   Bankruptcy, short sale or foreclosure\n*   Collection accounts or charge-offs\n*   Too much existing available credit with the lender END
 TITLE: 6 Things You Should Do If You’ve Been Denied Credit CONTENT: 2\\. Plead Your Case\n-------------------\nIf you've been denied a credit card, you may be able to plead your case with the card issuer. Many of the major credit card issuers allow you to call and speak with a credit specialist, who may be able to give you more information about why you were denied and even give you the chance to convince them to reverse the decision.\nThere's no guarantee that asking the credit card company to reconsider will result in a positive outcome, but it doesn't hurt to try. END
 TITLE: 6 Things You Should Do If You’ve Been Denied Credit CONTENT: 3\\. Check Your Credit Report and Credit Score\n---------------------------------------------\nOnce you know why you've been denied, check your credit score and credit report to get more specific information about your situation. Credit scores provide snapshots of your overall credit health, and your report is where you'll find detailed information about your accounts and payment history.\nIf you've been denied credit, you're entitled to a free copy of your credit report. Take the opportunity to read your report and look for problem areas you're able to address (account balances, for instance). Specifically, look for the issues provided in the adverse action letter to get an idea of which steps you should take.\nYou can check your credit score for free through Experian. If it's low, you'll have a harder time qualifying for many credit cards and loans. Addressing the risk factors in your credit report can help you raise your score and, in turn, expand your options. END
 TITLE: 6 Things You Should Do If You’ve Been Denied Credit CONTENT: 4\\. Address Credit Concerns\n---------------------------\nUsing your adverse action letter and credit report as your guide, start taking action to improve your credit. Ideas include:\n*   Get caught up on past-due payments or pay off collection or charge-off accounts.\n*   Make it a goal to always pay your bills on time going forward.\n*   Pay down high credit card balances and avoid replacing them with new credit card debt.\n*   Dispute inaccurate or fraudulent information you find on your credit report with the credit reporting agencies.\n*   Avoid closing old credit card accounts.\n*   Avoid applying for new credit until you know you have a good chance of getting approved.\nYou may also consider looking for other ways to build your credit. For example, if you have a family member with excellent credit and a credit card, you may ask them to add you as an authorized user on the account. Once your authorized-user status is reported to the credit bureaus, the entire history of the account will show up on your credit report, which could improve your score. A secured credit card or a credit-builder loan might also work well for you.\nYou can also use Experian Boost™† , which gives you credit for positive payment history with utility, phone, Netflix® and other accounts to help increase your score. To use the tool, you'll link your bank accounts and verify payments you'd like to include, which can help boost your credit score instantly. END
 TITLE: 6 Things You Should Do If You’ve Been Denied Credit CONTENT: 5\\. Apply With a Different Lender\n---------------------------------\nIf your credit score is less than perfect, the problem may simply be that you need to apply with another lender. Many lenders specialize in working with borrowers who have fair or bad credit. If you need money now and can't wait until you've built your credit history, check out other lenders who may be more suitable for your credit situation.\nWith Experian CreditMatch™, you can get prequalified for and compare credit cards, personal loans and more based on your credit file. END
 TITLE: 6 Things You Should Do If You’ve Been Denied Credit CONTENT: 6\\. Continue to Monitor Your Credit\n-----------------------------------\nAs you work on building your credit, keep track of your progress to see how your actions impact your credit score. Experian's credit monitoring service provides free access to your FICO® Score☉ and also your Experian credit report.\nPlus, you'll get real-time alerts about new credit inquiries and accounts and more. Once your credit is in good enough shape to apply again, take the time to compare multiple options to make sure you get the best loan or credit card for your needs. END
 TITLE: 6 Things You Should Do If You’ve Been Denied Credit CONTENT: Maintain a Long-Term Mindset\n----------------------------\nIf you've been denied credit, it can be tempting to do whatever you need to do to get approved now and leave it at that. But if you anticipate needing credit again in the future—or you want to avoid high interest rates and fees—it's crucial to work toward long-term credit health.\nThis means continuing to monitor your credit after you've been approved. Maintaining a good credit score will make it easier to get approved in the future and with favorable terms. It may also provide other benefits, such as lower auto and homeowners insurance rates and a better chance of getting a job or apartment lease.\nIn other words, prioritizing your credit history can make your life easier and save you a lot of money in the long run. END
 TITLE: What to Do After You Were Denied a Refinance CONTENT: Why Lenders Reject Refinance Applications\n-----------------------------------------\nA lender may reject a home refinance application for a multitude of reasons. Chief among them:\n*   **Weak credit score and credit history**: Lenders don't like to see late payments and collection accounts on a credit report, since they may be indicators of financial irresponsibility. They may also hesitate to offer the loan if your credit scores are too low. The scores used by lenders typically fall somewhere on a range of 300 to 850, with a score of at least 620 being what many mortgage refinance lenders are looking for. If you are denied a mortgage refinance loan, you will receive what's called an adverse action letter from the lender informing you why your application was rejected. You have a legal right to request a free credit report from the credit bureau the lender used to review your credit.\n*   **Income issues**: If your lender believes your income is too low to handle the payments on a new loan, it may reject your application. Inconsistent employment also falls into this category: Lenders like to see that you've held a steady job for at least two years. Or you may have plenty of money to make the new payments, but can't provide evidence with paycheck stubs, W-2s, tax returns or bank statements.\n*   **High debt-to-income (DTI) ratio**: Your DTI is the total of your monthly debt payments divided by your gross monthly income. If your DTI ratio is greater than 50% (or sometimes 43% depending on the lender), many lenders will reject your application because it will appear that you're overextended.\n*   **Low home appraisal**: If the appraised value of your home is less than what you owe, you won't be able to refinance.\n*   **Insufficient equity**: In general, lenders expect you to have a minimum of 20% in home equity to refinance. And if you owe more money than the home is worth, you're what's known as \"underwater,\" which usually results in an automatic denial. END
 TITLE: What to Do After You Were Denied a Refinance CONTENT: Can't Refinance? Take the Next Steps\n------------------------------------\nThere's no reason to accept no for an answer and stop there. By pinpointing the reasons you wanted to refinance your mortgage in the first place, and then taking alternative action, you may be able to achieve your initial goal in a different way. Here are options to consider according to your reasons for refinancing. END
 TITLE: What to Do After You Were Denied a Refinance CONTENT: Improve Your Credit for Future Success\n--------------------------------------\nAll along, keep a close watch on your credit report. Remember, lenders always read them and the credit scores that are derived from the listed information. Get your free Experian report on a regular basis and read it for accuracy. Watch the progress of your credit score and consider free credit monitoring to catch and offset fraudulent activity that can cause credit troubles.\nImproving your credit now can help you avoid a denial the next time you apply for credit. Paying down credit card bills and making sure all your payments are two steps you can take right now to start improving your credit and getting on a solid financial path.\nAlso consider enrolling in Experian Boost™† . You can add your phone and utility bills to your Experian credit report, and on-time payments will work in your scoring favor (at no cost to you). When you're prepared to try your hand at refinancing again, your credit reports and scores should also be ready. END
 TITLE: What Happens if You’re Turned Down for a Secured Credit Card CONTENT: If you've been denied credit due to information found on your credit report, the lender should have sent you an adverse action letter. This letter will explain why you were denied and the rights you have as a consumer, such as the ability to get a free copy of your credit report. If your credit score was the basis for your denial, the letter will also include your score, the date it was pulled and the method used to generate it.\nHere are some steps you can take after being denied for a secured card that may help to improve your chances of getting approved next time. END
 TITLE: What Happens if You’re Turned Down for a Secured Credit Card CONTENT: Reasons Why You Might Get Denied for a Secured Credit Card\n----------------------------------------------------------\nEvery credit card issuer has different criteria for approval, but generally they are all looking for borrowers they can reasonably expect to stay current on their debt payments. Here are some common reasons you may not get approved for a secured credit card:\n*   **Not able to demonstrate an ability to repay debt**: Lenders are required by law to assess your ability to repay any debt you incur on a credit card. If your income is insufficient, even having enough money for the deposit won't be enough to get approved.\n*   **No verified income**: If you claim income on your application, you may need to provide documentation for it. If you can't, your application can be denied.\n*   **Not enough funds for the required deposit**: If your credit is in good enough shape to be approved, but you can't cover the card's deposit, you'll need to wait until you have the required cash to apply again.\n*   **Certain negative items on your credit report**: Some card issuers may deny your application if you're currently going through a bankruptcy, or even if you've had a bankruptcy discharged recently. The same may go for other major negative items, such as collection accounts, repossessions and more.\n*   **Extremely low credit score**: While secured credit cards are accessible for people with bad credit, card issuers may still have a minimum credit score requirement for approval. If you don't meet that requirement, you may need to spend some time building your credit score. END
 TITLE: What Happens if You’re Turned Down for a Secured Credit Card CONTENT: Improve Your Credit Score Before Applying Again\n-----------------------------------------------\nIf you get denied credit, you may be tempted to immediately apply for a different card. But keep in mind, a hard inquiry will be added to your credit report every time you apply for credit—even if you're denied—which can result in a small decrease in your credit score.\nIf you apply for multiple credit card accounts in a short period, it can have a compounding negative impact on your credit score. Credit card applications can even be denied outright due to too many recent applications in your credit file.\nAs such, it's essential to take some time to improve your credit before you apply a second time. Here are some tips to help you get started:\n*   **Pay bills on time.** Your payment history is the most influential factor in determining your credit score. Make it a goal to get caught up on past-due credit accounts and pay your bills on time going forward.\n*   **Reduce credit card balances.** Your credit utilization rate—the percentage of your available credit you're using—is another important factor in your credit score. If you have other credit cards, try to pay down their balances—the lower your utilization rate, the better.\n*   **Get credit for utility and phone payments.** If you pay your utility and phone bills on time every month, you can get credit for those payments with Experian Boost™† . This free opt-in service allows you to connect your bank accounts, identify your utility and phone payment history, and confirm you want it added to your Experian credit file. You'll receive an updated FICO® Score☉ instantly.\n*   **Apply for new credit only if you need it.** While hard inquiries typically don't have a significant impact on your credit score, it can still make it harder to get approved for credit in the future, especially if you have other negative items on your credit report.\nMonitor Your Credit to Keep Track of Improvements\n-------------------------------------------------\nAs you're working on building your credit history, Experian's credit monitoring service can help you keep track of your improvements with a free FICO® Score powered by Experian data. You'll also get real-time alerts when new inquiries and accounts get added to your credit report.\nAs you work on building good credit habits and keep track of your improvements, you'll be on the right path to getting approved the next time you apply for a secured credit card. END
 TITLE: What Happens if You’re Turned Down for a Secured Credit Card CONTENT: Monitor Your Credit to Keep Track of Improvements\n-------------------------------------------------\nAs you're working on building your credit history, Experian's credit monitoring service can help you keep track of your improvements with a free FICO® Score powered by Experian data. You'll also get real-time alerts when new inquiries and accounts get added to your credit report.\nAs you work on building good credit habits and keep track of your improvements, you'll be on the right path to getting approved the next time you apply for a secured credit card. END
 TITLE: What Is an Adverse Action Letter? CONTENT: What Is Included in an Adverse Action Letter?\n---------------------------------------------\nAccording to federal law, an adverse action notice can be made orally, electronically or in writing. In many cases, you can expect to receive a letter in the mail within seven to 10 business days of the denial.\nRegardless of how the company provides the notice, however, it's required to include the following information:\n*   Your credit score, if it was used to make the decision, along with the date the score was created and the range of possible credit scores based on the model used to generate your score.\n*   The name, address and phone number of the credit reporting agency (Experian, TransUnion or Equifax) that supplied the credit report used in the decision.\n*   Reasons for the denial (there can be up to five).\n*   Notice of your right to a free copy of your credit report within 60 days of the credit bureau, and how to get that copy.\n*   Notice of your right to dispute the accuracy or completeness of any information provided by the credit reporting agency.\nWith this information, you'll have an understanding of not only where your credit history stands, but also which areas of your credit file that need to be addressed. END
 TITLE: What Is an Adverse Action Letter? CONTENT: Why Did I Receive an Adverse Action Notice?\n-------------------------------------------\nThere are several reasons why you may be denied credit. While some of them aren't related to your credit report—for example, not meeting minimum income or age requirements or an incomplete application—you won't receive an adverse action notice unless the denial was due to information on your credit report.\nPotential reasons include:\n*   Credit score doesn't meet the creditor's minimum requirement\n*   Too much debt relative to your income\n*   Not enough credit history\n*   Late payments\n*   Too many recent credit applications\n*   High credit utilization ratio\n*   Too much existing credit with the lender\n*   Bankruptcy, short sale or foreclosure\n*   Charge-off or collection accounts\nCompanies are required to list four of the key factors that are adversely affecting your credit score. If one of the key factors is the number of hard inquiries on your credit report, they must list that as well. END
 TITLE: What Is an Adverse Action Letter? CONTENT: Next Steps After Receiving an Adverse Action Notice\n---------------------------------------------------\nAn adverse action letter can share some general information about why you've been denied credit, but it's a good idea to check at least one of your credit reports to get the full story behind your credit score.\nWhile credit reporting agencies do not take part in making lending decisions, you'll receive information about the bureau that provided the credit file used to assess your credit. The adverse action letter will also explain your right to get a free copy of your credit report from all three major credit bureaus within 60 days of receiving the notice. Additionally, you can sign up to view your Experian credit report for free once a month and get a free copy of your report from each bureau every 12 months through AnnualCreditReport.com.\nIt's also a good idea to check your credit score, which may be a little different from the one listed on your adverse action letter. This is because there are several different scoring models out there, and some information can vary with each credit bureau.\nThat said, the primary factors that influence your FICO® Score☉ include:\n*   Payment history\n*   Amounts owed\n*   Length of credit history\n*   Credit mix\n*   New credit\nAs you review your credit score and report, look for information that's potentially inaccurate or even fraudulent. You'll have the option to dispute this information directly with the credit reporting agencies online, by phone or by mail.\nOnce you've submitted your dispute, the credit bureau will work to resolve the issue, including gathering information from the creditor that furnished the information. Once the investigation is complete, which typically occurs within 30 days, one of three things can happen:\n*   The inaccurate information will be corrected.\n*   The inaccurate or fraudulent information will be updated or removed.\n*   The information will be verified as accurate and stay on your report. END
 TITLE: What Is an Adverse Action Letter? CONTENT: How to Improve Credit and Reduce the Chance of Future Denial\n------------------------------------------------------------\nIf your application for credit was denied for a specific reason, pay attention to that factor going forward and be sure to remedy it before you reapply. Denials based on your credit score or lack of credit history are addressable if you work on building your credit score.\nThis process can take time, but it can improve your chances of getting approved for credit in the future. Be sure to:\n*   **Pay your bills on time.** If you're behind on any of your payments, work on getting current as quickly as possible. Then make it a goal to pay on time every month going forward. While you can't erase the negative influence of past-due payments, positive payment history going forward can help reduce the sting.\n*   **Pay down credit cards.** How much you owe is an important factor in your credit score, especially when it comes to credit cards. Some experts recommend keeping your card balances below 30% of your available credit, but the lower, the better.\n*   **Avoid unnecessary credit applications.** Credit inquiries don't have a significant impact on your credit score on their own, but if you apply for credit multiple times in a short period, it can have a compounding effect. So try to avoid applying for credit unless you absolutely need it.\n*   **Get credit for utility and phone payments.** If you make your utility and phone payments on time, Experian Boost™† can allow you to add that information to your credit file and reap the benefits with your credit score. Simply connect your bank accounts and identify the payments you want to have added to your Experian credit file, and you'll see an updated FICO® Score immediately.\nAlso, keep in mind that while it's important to work on improving your credit, that doesn't necessarily mean you can't get approved for credit in the meantime.\nThere are some lenders that specialize in working with people with less-than-stellar credit. While their interest rates and other features may not be as favorable as prime lenders, they may still be able to get you the credit you need. Consider these options only if you absolutely need credit now, and can't wait to work on your credit situation.\nIf, however, you do have some time to improve your credit score, focus on that now, and it could save you a lot of money in interest in the long run. END
 TITLE: What Is an Adverse Action Letter? CONTENT: Avoid Applying Again Until You Can Assess the Situation\n-------------------------------------------------------\nGetting denied credit can feel like a personal attack, and you may be tempted to apply again immediately with a different lender. Until you know why you were denied, though, you could end up getting denied again and have an unnecessary hard inquiry added to your credit report.\nSo unless you need credit immediately, wait until you receive the adverse action letter in the mail so you have an understanding of the situation and know which steps you need to take to reduce the chance of getting denied again in the future. END
 TITLE: Why Would a Mortgage Application Get Denied? CONTENT: Reasons Why Your Mortgage Could Get Declined\n--------------------------------------------\nThere are several common reasons a mortgage application could get declined.\n*   **Low credit score**: The minimum credit score needed to secure a mortgage varies depending on the lender you choose and the type of mortgage you're seeking. For a conventional mortgage or VA loan, the minimum FICO® Score☉ needed is typically about 620; for a USDA loan, it's usually 640. You can get an FHA loan with a credit score as low as 500, but you will have to make a bigger down payment than if your credit score were higher. (See below for specifics on each type of loan.)\n*   **No credit history**: If you don't use credit cards or have never taken out a loan, you may have what's called a \"thin\" credit file. This means you have a very minimal credit history—or none at all. Without a credit history they can use to assess your creditworthiness, lenders will find it difficult to approve you for a mortgage unless they are willing to find other ways you can prove financial responsibility.\n*   **High debt-to-income (DTI) ratio**: To assess your ability to repay the loan, lenders will review the percentage of your monthly income that goes to monthly debts. It may be harder to secure a loan if your housing payment is 28% or more of your gross monthly income (31% or more if you're applying for an FHA loan).\n*   **Small down payment**: Putting your own money toward your home purchase shows lenders you have skin in the game, making you more likely to repay the mortgage. The bigger down payment you can make, the better chance you have of being approved for a mortgage.\n*   **Missing application information**: Even if you have good credit and a solid income, your mortgage application may be denied if you omit or forget to include necessary information. To avoid disappointment, review your application carefully to make sure it's complete before submitting it.\n*   **Recent job change**: Mortgage lenders want to see stability; recent job changes may raise doubts about your ability to hold a steady job. Having the same job for at least two years may help your chances of approval. END
 TITLE: Why Would a Mortgage Application Get Denied? CONTENT: How Do You Qualify for a Mortgage?\n----------------------------------\nWhen assessing your mortgage application to decide if you're creditworthy, mortgage lenders consider several different factors.\n*   **Payment history**: A long record of making on-time payments to creditors on your credit report will make you a more appealing borrower in the eyes of a lender.\n*   **Credit utilization ratio**: Your credit utilization ratio reflects how much of your available credit you're currently using. A ratio of 30% or higher can harm your credit scores and indicate to lenders that you're not able to fully pay off your existing debt obligations. The lower this ratio is, the better it is for your scores.\n*   **Recent credit applications**: If you've recently made multiple applications for loans, credit cards or other types of credit, lenders may see this as a warning sign you're in financial trouble. Applications for credit will result in hard inquiries that stay on your credit report for two years.\n*   **Major derogatories**: Bankruptcies, delinquent accounts, accounts in collections, charge-offs, and accounts settled for less than the amount owed are all warning signs you may be a poor credit risk.\n*   **Authorized-user accounts**: Being an authorized user on a credit card can help you build your credit file and scores, but a lender isn't likely to view it as an indicator of your own credit management ability. The account may also work against you when the lender calculates your DTI ratio.\n*   **Dispute statements or pending disputes**: To get a clear picture of your credit history, lenders typically want to see any disputes on your credit report resolved before they'll approve your mortgage application.\nAlso keep in mind there are various types of mortgages, designed for different purposes and borrowers; each may have different qualifying requirements. Here's a closer look.\n*   **Conventional mortgage loan**: Conventional mortgage loans are not backed by government programs or government agencies. Mortgages originated by banks, credit unions and mortgage lenders fall into this category.\n*   **FHA loans**: Intended for first-time homebuyers or those with poor credit, FHA loans are insured by the Federal Housing Administration (FHA). They allow you to buy a home with a down payment of as little as 3.5% of the home's purchase price. In exchange, you'll have to pay private mortgage insurance for the life of the loan.\n*   **VA loans**: These loans for current or former U.S. military service members and their spouses are insured by the Department of Veterans Affairs (VA) and let you finance 100% of the home price, so there's no need to save up for a down payment. VA loans can also be used to build a new home, remodel or add onto an existing home.\n*   **USDA loans**: Low- to moderate-income rural or suburban homebuyers who meet certain criteria may qualify for these loans. Loans from the U.S. Department of Agriculture (USDA) don't require a down payment and are guaranteed by the government.\n*   **Fixed-rate mortgage**: As the name implies, these loans have the same interest rate for the life of the loan, so you don't have to worry about your monthly payments increasing. Fixed-rate mortgages usually have terms of 15, 20 or 30 years.\n*   **Adjustable-rate mortgage**: These mortgages have an interest rate that is fixed for an introductory period and then adjusts annually based on current market rates. ARMs usually have lower starting interest rates than fixed-rate mortgages, with the tradeoff that your monthly payments are unpredictable can increase—sometimes substantially—over time.\n*   **Conforming loan**: A loan that conforms to limits set by the Federal Housing Finance Agency (FHFA) and meets the criteria of Fannie Mae and Freddie Mac, government-sponsored enterprises that buy and administer most U.S. home loans, is called a conforming loan. The FHFA's 2020 limits for conforming loans are $510,400 or less in 48 states and $765,600 or less for Alaska, Hawaii and certain high-cost counties.\n*   **Non-conforming loan**: A mortgage loan for an amount greater than the conforming loan limit is called a jumbo loan. To qualify for a jumbo loan, you'll typically need a better credit score, bigger down payment and more assets than you'd need to qualify for a conforming loan. These loans also have higher closing costs and interest rates.\nWhat to Do If Your Mortgage Application Is Rejected\n---------------------------------------------------\nIf your mortgage application is denied, you'll receive a declination letter (also called an adverse action letter) from the lender. By law, you are entitled to a copy of your free credit report if your application is denied. The declination letter should provide instructions for getting a copy of your credit report from the credit reporting agency that was used in making the decision.\nLenders are required to tell you why your application was denied. If the declination letter doesn't specify a reason, contact the lender to ask. Most often, loans are declined because of poor credit, insufficient income or an excessive debt-to-income ratio. Reviewing your credit report will help you identify what the issues were in your case.  \nIncrease Your Chances of Getting a Mortgage\n-------------------------------------------\nDon't wait until after you receive a declination letter to learn that there's a problem with your credit. Before you apply for a mortgage, get a copy of your free credit report and free credit score to see if there are any issues that might keep you from getting approved.\nIf there are mistakes on your credit report, have them corrected. If your credit score is too low, take steps to improve your score before you apply for a mortgage. Paying down debt, demonstrating good credit habits and reducing your credit utilization can boost your odds of getting a mortgage—and of successfully paying it off. END
 TITLE: Why Would a Mortgage Application Get Denied? CONTENT: What to Do If Your Mortgage Application Is Rejected\n---------------------------------------------------\nIf your mortgage application is denied, you'll receive a declination letter (also called an adverse action letter) from the lender. By law, you are entitled to a copy of your free credit report if your application is denied. The declination letter should provide instructions for getting a copy of your credit report from the credit reporting agency that was used in making the decision.\nLenders are required to tell you why your application was denied. If the declination letter doesn't specify a reason, contact the lender to ask. Most often, loans are declined because of poor credit, insufficient income or an excessive debt-to-income ratio. Reviewing your credit report will help you identify what the issues were in your case. END
 TITLE: Why Would a Mortgage Application Get Denied? CONTENT: Increase Your Chances of Getting a Mortgage\n-------------------------------------------\nDon't wait until after you receive a declination letter to learn that there's a problem with your credit. Before you apply for a mortgage, get a copy of your free credit report and free credit score to see if there are any issues that might keep you from getting approved.\nIf there are mistakes on your credit report, have them corrected. If your credit score is too low, take steps to improve your score before you apply for a mortgage. Paying down debt, demonstrating good credit habits and reducing your credit utilization can boost your odds of getting a mortgage—and of successfully paying it off. END
 TITLE: Why Was I Denied a Checking Account? CONTENT: Checking Your ChexSystems Report\n--------------------------------\nWhen you apply for a new checking account, banks and credit unions typically check your ChexSystems report. ChexSystems is a debit bureau, which collects information from banks and other financial institutions. While not a part of your credit report, your ChexSystems report is similar in that it shows previous account activity, in this case with banks and credit unions.\nBanks use ChexSystems reports when deciding whether to offer a bank account to a new customer. If you were denied a checking account, it's likely due to one or more negative items in your ChexSystems report.\nThe good news is you can check your ChexSystems report—and you should if you were rejected when you applied for a checking account. Federal law allows you to obtain a copy of your ChexSystems report once a year and, additionally, whenever you are denied a bank account. You can obtain a free copy of your ChexSystems report by going to the [ChexSystems website](!ut\/p\/z1\/04_Sj9CPykssy0xPLMnMz0vMAfIjo8ziDRxdHA1Ngg183AP83QwcXX39LIJDfYwM3M30wwkpiAJJ4wCOBkD9URAlMBP8PUKMgCa4-rgbG3kbugeaoCtAs8LAHKYAtyUFuREGmZ6OigAWLRKn\/dz\/d5\/L2dBISEvZ0FBIS9nQSEh\/). END
 TITLE: Why Was I Denied a Checking Account? CONTENT: Reasons You May Have Been Denied a Checking Account\n---------------------------------------------------\nThe following issues are the most common reasons banks deny checking account applications:\n### 1\\. Negative Information on Your ChexSystems Report\nIf you were denied a checking account, it's likely due to one or more negative items on your ChexSystems report. That negative information typically includes one or more of the following:\n*   Involuntary account closure\n*   Too many past bounced checks or overdrafts\n*   Unpaid fees or negative balances from a current or closed account\n*   Suspected fraud or identity theft\n*   Too many accounts applied for over a short amount of time\n### 2\\. Errors on your ChexSystems Report\nNegative information on your ChexSystems report may be a result of errors. For example, you might have been confused with another person with a similar name, or perhaps there was an error inputting your Social Security number. Fortunately, you can find these errors when you check your ChexSystems report and dispute them with [ChexSystems](!ut\/p\/z1\/04_Sj9CPykssy0xPLMnMz0vMAfIjo8ziDRxdHA1Ngg183AP83QwcXX39LIJDfYwMnM30w1EV-HuEGAEVuPq4Gxt5G7oHmuhHkaQfTYGBOZH6cQBHA8rsByqIwm98uH4UqhVYQgCvG0BeJGRJQW5oaGiEQaano6IiAPs5WGA!\/dz\/d5\/L2dBISEvZ0FBIS9nQSEh\/). Be sure to have any supporting documentation handy when you are attempting to erase errors from your report.\n### 3\\. Bad Credit\nBecause ChexSystems collects data related to both debit and credit accounts, a low credit score can affect your chances of getting a checking account. Banks and credit unions may report unpaid fees and debts to collection agencies, which can then submit that information to a credit reporting bureau. This can result in a lower credit score.\nIf you attempt to resolve these issues and your bank still refuses to offer you a checking account, you can look into a second-chance bank account. END
 TITLE: Why Was I Denied a Checking Account? CONTENT: Exploring a Second-Chance Checking Account\n------------------------------------------\nIf you're unable to open a traditional checking account, you might want to consider a so-called second-chance checking account. These are accounts offered to people who have been denied a standard checking account, and they don't use ChexSystems to qualify customers.\nSecond-chance accounts work much like standard checking accounts and can help you improve your banking history over time so you can apply for a traditional checking account in the future. However, they may have higher monthly fees, a required minimum balance or other requirements. In addition, second-chance accounts don't always offer certain benefits of standard accounts, such as overdraft protection, checks and access to direct deposit. Even with these limitations, however, the benefits of a second-chance checking account—mainly, helping improve your banking history—may outweigh the costs. END
 TITLE: Why Was I Denied a Checking Account? CONTENT: Steps to Take Before Reapplying for a Checking Account\n------------------------------------------------------\nBefore trying to qualify for a standard checking account after you've been denied, take the following steps:\n1.  **Clean up your ChexSystems report.** Request a copy of your report, and take steps to address any negative information you find there. For starters, pay off any unpaid fees you owe. Also look for errors on your report. If you find any, you can initiate a dispute with ChexSystems and provide supporting documentation. The investigation may take up to 30 days. Any negative items that can't be removed from your report should drop off your report after five years.\n2.  **Request a copy of your free credit report.** Both your ChexSystems report and your credit report give you a good idea of where you stand financially. Building credit as you also work to improve your banking history will help ensure a better financial future. END
 TITLE: How to Get Rid of Private Mortgage Insurance (PMI) CONTENT: Private mortgage insurance is an insurance policy you may have to purchase when you get a conventional mortgage from a private lender.\nGenerally, you have to have PMI if you put less than 20% down. For example, if you buy a $400,000 home, your down payment will need to be at least $80,000 if you want to avoid PMI. Plus, you'll need to budget for closing costs.\nPrivate mortgage insurance protects private mortgage lenders if a borrower doesn't repay a conventional loan. Sometimes, PMI is confused with mortgage insurance that you may have to pay for with other types of mortgages:\n*   **Mortgage insurance premium (MIP)** protects lenders if a borrower doesn't repay their Federal Housing Administration (FHA) mortgages.\n*   **U.S. Department of Agriculture** **(USDA) loans** require an upfront and monthly premium payment for mortgage insurance.\n*   **Department of Veterans Affairs** **(VA) loans** don't require mortgage insurance, but you may pay an upfront funding fee to get the loan.\nPMI is also different from homeowners insurance, which protects you in case your home or belongings are damaged or stolen. PMI protects the lender.\nOne important distinction is that you can't remove mortgage insurance on mortgages that are government-backed or -issued unless you refinance to a loan that doesn't require mortgage insurance. You can get rid of PMI, however, or get a mortgage from a private lender without PMI if you have a large down payment.\nA PMI policy costs around 0.5% to 2% of the total mortgage. The exact amount can vary depending on your down payment and credit scores. Having good credit can help you qualify for a lower interest rate on your mortgage and lower PMI payments.\nMost borrowers pay the monthly PMI premiums as part of their mortgage payment. But you might have the option to pay the entire amount upfront, or split the cost between upfront and monthly payments.\nSome lenders also offer PMI-free mortgages to borrowers who put less than 20% down. But these have lender-paid private mortgage insurance (LPMI), and the loans often have a higher interest rate. END
 TITLE: How to Get Rid of Private Mortgage Insurance (PMI) CONTENT: How to Get Rid of PMI\n---------------------\nBecause PMI protects the lender, not the borrower, getting rid of PMI can save you money without taking away any benefits. There are four common ways to remove or cancel your private mortgage insurance. END
 TITLE: How to Get Rid of Private Mortgage Insurance (PMI) CONTENT: 1\\. Wait for Automatic Cancellation\n-----------------------------------\nThe federal Homeowners Protection Act of 1998 (also called the PMI Cancellation Act) requires your loan servicer to automatically cancel your PMI on the date when you're scheduled to have 22% equity in your home. You may also see this written as the scheduled date when the principal balance is 78% of the home's original value.\nAdditionally, loan servicers must cancel your PMI the month after you're scheduled to be halfway through paying off the loan—15 years into a 30-year mortgage, for instance. The final termination occurs even if you don't have 22% equity. Generally, this happens if you took out an interest-only mortgage, a mortgage with a balloon payment or your mortgage was in forbearance.\nIn either case, you must be current on your mortgage payments to qualify for automatic PMI cancellation. END
 TITLE: How to Get Rid of Private Mortgage Insurance (PMI) CONTENT: 2\\. Request PMI Cancellation\n----------------------------\nYou can also ask your loan servicer to cancel your PMI once the loan's principal value is 80% of the home's original value. The original value is the lesser of the home's appraised value or sale price when you took out the mortgage.\nTo qualify, you must have a good payment history and can't be behind on your payments. You also might not be able to have a second mortgage—such as a home equity loan or line of credit. Additionally, the lender can require you to get an appraisal and may deny your request if the home's value has decreased since you bought it. END
 TITLE: How to Get Rid of Private Mortgage Insurance (PMI) CONTENT: 3\\. Get a New Appraisal\n-----------------------\nAs your home's value rises, the principal balance stays the same and your equity increases. If you've noticed rising prices in your area or have completed home improvement projects, you could have over 20% equity even if you haven't been making extra mortgage payments.\nContact your loan servicer if you think this may be the case. Lenders might be willing to cancel your PMI if you have 20% equity based on the home's current value. However, you may need to pay for a home appraisal first. END
 TITLE: How to Get Rid of Private Mortgage Insurance (PMI) CONTENT: 4\\. Refinance Your Mortgage\n---------------------------\nAnother option may be to refinance your mortgage. Whether you'll need PMI on the new loan will depend on your home's current value and the principal balance of the new mortgage. You can likely get rid of PMI if your equity has increased to at least 20% and you don't use a cash-out refinance.\nIf you prepaid your entire PMI premium, you might be able to get a refund for part of the premiums when you refinance. Borrowers who took out a loan with a higher interest rate and LPMI can also benefit from refinancing with a mortgage that doesn't require PMI. END
 TITLE: How to Get Rid of Private Mortgage Insurance (PMI) CONTENT: Check Your Credit and Consider Refinancing\n------------------------------------------\nWhen your creditworthiness improves or interest rates drop, refinancing your mortgage may help you save money. And even if you don't have enough equity to get rid of your PMI, refinancing could lower your interest rate and monthly payment.\nAlong with your income, current debts and the home's value, your credit history and scores can impact your options. Check your Experian credit report for free, which comes with free credit monitoring that can alert you to unusual activity. You can also check and monitor your FICO® Score☉ 8 based on your Experian credit report, which may help you determine when refinancing makes sense. END
 TITLE: Do I Need Mortgage Insurance? CONTENT: What Is Mortgage Insurance?\n---------------------------\nMortgage insurance protects your lender in case you can't afford to pay your mortgage in the future. Don't confuse it with homeowners insurance, which protects you in case something happens to your home.\nMortgage insurance can come in several forms depending on the type of mortgage you get:\n*   **Private mortgage insurance (PMI)** may be required when you put down less than 20% on a conventional mortgage loan.\n*   A **mortgage insurance premium (MIP)** is what you'll need to pay if you get a mortgage through a Federal Housing Authority (FHA) program.\n*   U.S. Department of Agriculture (USDA)\\-backed mortgages have a similar requirement to FHA loans, but refer to the cost as a **guarantee fee**.\n*   If you get a Department of Veterans Affairs (VA)\\-backed home loan, you may have to pay VA funding fees, but the loans don't require mortgage insurance.\nIf you have a conventional mortgage and are paying for PMI, you may be able to get rid of the insurance and stop making payments once you've established 20% equity in your home (in other words, when your remaining loan balance drops to less than 80% of the home's value). For government-backed FHA and USDA loans, you may have to pay mortgage insurance for the entirety of the loan. END
 TITLE: Do I Need Mortgage Insurance? CONTENT: How Much Does Mortgage Insurance Cost?\n--------------------------------------\nMortgage insurance costs vary depending on several factors, including the type of loan you have. Annual PMI costs on conventional loans average about 0.55% to 2.25% of the loan amount depending on your down payment, your credit and the lender. If you're not sure where your credit stands, find out your credit score to see how it could affect your PMI (and your loan's interest rate and terms).\nAnnual mortgage insurance rates on USDA loans are 0.35% of the loan amount, while they can range from 0.45% to 1.05% for FHA loans depending on your down payment. USDA and FHA loans also require an upfront payment, which is usually 1% and 1.75%, respectively.\nAs an example, if you buy a $300,000 home with a 5% down payment, you'll borrow $285,000. If you get a 4% interest rate and 30-year term, you may pay an additional $83 (0.35%) to $534 (2.25%) a month for the insurance premium. END
 TITLE: Do I Need Mortgage Insurance? CONTENT: Do Conventional Mortgage Loans Require Insurance?\n-------------------------------------------------\nConventional mortgages offered by private lenders may require PMI if you put down less than 20% when you buy a home. However, some lenders offer mortgages with lender-paid PMI, which means you won't have to pay for the insurance. Instead, you may have to pay a higher interest rate, which can wind up costing you more money in the long run.\nIf you have to pay for PMI, you may be able to pay the full amount upfront, pay it monthly or use a combination of the two. Monthly payments are the most common option, and your insurance payment will be bundled with your mortgage payment\nYou'll have to continue paying for PMI on your conventional loan until one of the following scenarios occurs:\n*   You reach the date when the loan balance is 80% or less than the home's original value, and you request PMI cancellation.\n*   You request an earlier PMI cancellation because you've made extra payments and the loan balance is 80% or less than the home's original value before the expected date.\n*   The PMI is automatically removed because your loan balance is 78% of the home's original value.\nPaying for PMI upfront means your monthly payment will be lower and you won't need to request a cancelation later, but it will add to your upfront costs as the fee could be equivalent to several years' worth of premiums. An upfront payment could wind up costing you less in the long run than making monthly payments until you build 20% equity in the home, but it depends on the upfront fee and your down payment. END
 TITLE: Do I Need Mortgage Insurance? CONTENT: Do FHA Mortgage Loans Require Insurance?\n----------------------------------------\nFHA loans may require lower down payments (3.5%) and have less strict credit requirements than conventional mortgages. However, FHA mortgage loans may require both an upfront mortgage insurance premium (UFMIP) and an annual MIP, which you can pay monthly.\nUnlike with PMI, you can't request to cancel your FHA loan's MIP after you reach 20% equity, and it won't be automatically removed once you reach 22% equity. In fact, if your down payment is less than 10%, the PMI will remain for the lifetime of the loan.\nIf you put down at least 10% on your FHA loan, the MIP will be removed after 11 years. Alternatively, you could refinance your mortgage once you've established 20% equity to get a new mortgage that doesn't require mortgage insurance. END
 TITLE: Do I Need Mortgage Insurance? CONTENT: How to Avoid Paying for Mortgage Insurance\n------------------------------------------\nIf you qualify, a VA loan could allow you to buy a home with no down payment and no mortgage insurance. Otherwise, the most straightforward way to avoid paying for mortgage insurance is to get a conventional loan and make a down payment of at least 20%. If you can't afford 20% down, you can look for a lender that offers lender-paid PMI, but the loan may have a higher interest rate.\nYou may also be able to find a piggyback, or 80-10-10, loan to avoid PMI. With this arrangement, you put 10% down, get a loan to cover the other 10% of your down payment and take out the mortgage for 80% of the purchase. These types of arrangements aren't as common as they used to be, however, and the cost for the 10% loan might be more than you'd wind up paying for PMI. END
 TITLE: Do I Need Mortgage Insurance? CONTENT: Shop Mortgage Lenders and Loan Options\n--------------------------------------\nWhile mortgage insurance can increase your monthly payment, it may be a small price to pay to move into a home of your own. If you're ready to buy a home, shop around to find loan options and offers from different mortgage lenders. Compare the total cost, including the closing costs, interest and mortgage insurance, to find the option that will work best. And remember, even if you have to pay for mortgage insurance now, you may be able to remove it later. END
 TITLE: Do Home Insurance Companies Check Your Credit? CONTENT: What Is a Credit-Based Insurance Score?\n---------------------------------------\nA credit-based insurance score is similar to the traditional consumer credit score in that it provides a snapshot of your financial history. But rather than helping lenders assess your likelihood of repaying a loan or line of credit, it helps insurers determine your likelihood of filing an insurance claim. The better your CBI score, the more likely you'll get lower insurance premiums and rates.\nThere are several companies that create these scores, and the formulas they use to calculate the scores differ. Despite this variance, they are all intended to help the insurance company assess the risk when someone applies for coverage. END
 TITLE: Do Home Insurance Companies Check Your Credit? CONTENT: In states where it's allowed, which is most of them, insurers will usually look at your consumer credit report to see your financial history and assess if you'll be able to pay your premiums.\nHome insurers and other insurance companies look for similar criteria as lenders, such as your payment history, any issues with collections and your credit utilization (in other words, whether you're keeping your credit card balances low).\nJust like lenders, they want to make sure you have a history of paying your bills on time, don't carry too much debt and don't have a history that includes debt going into collections or filing for bankruptcy. END
 TITLE: Do Home Insurance Companies Check Your Credit? CONTENT: Will an Insurance Credit Check Impact Your Score?\n-------------------------------------------------\nYour credit score will not be impacted negatively when an insurer checks it because you've applied for coverage.\nThat's because credit checks fall into two categories: hard inquiries and soft inquiries. Hard inquiries happen when your credit is pulled because you've applied for new credit, like a mortgage loan, and they can slightly ding your credit for about a year. Many hard inquiries in a short period of time can be a red flag since it can signal that you're struggling financially and are using debt to make ends meet.\nThen there are soft inquiries, which is when you check your own credit or a lender or other business checks your credit to prequalify you for an offer. Soft inquiries don't affect your credit scores. An insurer looking at your credit history or credit-based insurance scores will result in a soft inquiry on your credit report.\nBoth hard and soft inquiries will remain on your credit report for about two years. END
 TITLE: Do Home Insurance Companies Check Your Credit? CONTENT: What Else Can Influence Your Insurance Premiums?\n------------------------------------------------\nIn addition to your credit-based insurance score, there are a few other factors that insurance companies use to determine the cost of your home insurance premium. Remember that insurance is all about risk, so insurers tend to provide coverage at a lower rate to those who are deemed less likely to file a claim.\nHome and auto insurers have access to a database of insurance claims filed in the past seven years and may use the information they find there to adjust your rates. That's because a customer who files frequent claims poses a higher financial risk to the insurance company—risk they'll make up by charging a higher insurance premium.\nThe home you purchase can also play a big role in what you'll pay to insure it. Again, since insurers are looking to minimize risk, the age and construction type of your home play a role, as does the home's location. They'll also consider things like whether the location of the home is prone to severe weather or close to a coast, and the home's proximity to a fire hydrant.\nHome insurers might lower a premium if the home has safety measures in place, such as security systems, sprinkler systems and smoke alarms. Riskier features, such as a swimming pool or a trampoline, can cause your home insurance premium to increase.\nKeep in mind that the price of your premium will also vary based on your deductible. Typically, the higher your home insurance deductible, the lower your premium will be. END
 TITLE: Do Home Insurance Companies Check Your Credit? CONTENT: Get Familiar With Your Credit\n-----------------------------\nWhile your credit-based insurance score is different from your typical consumer credit score, what's found in your credit report will still play a role in how it's calculated. Getting home insurance won't have a negative impact on your credit, but if your credit is in bad shape, you may find it difficult to get approved for coverage, or you may be charged a higher insurance premium. If you're planning to buy a home soon and haven't checked your credit in a while, check your credit report for free through Experian to get a sense of where you stand. If it needs some help, you can spend some time working to improve your credit before you begin the homebuying process. END
 TITLE: Are Home Warranties Worth the Cost? CONTENT: How Do Home Warranties Work?\n----------------------------\nA home warranty covers home appliances and systems that break down or malfunction with normal use and age. You pay a premium, then notify the warranty company if something goes wrong. If it's covered by your contract, they'll typically dispatch a service technician to your home to assess the situation and report their findings. From there, they'll either repair or replace the unit with no further cost to you—aside from a service fee.\nTo be clear, a home warranty isn't the same as homeowners insurance, which generally protects against property damage, theft and liability. A home warranty is different in that it's focused on appliances and home systems. Warranties often cover things like:\n*   Washers and dryers\n*   Dishwashers\n*   Refrigerators\n*   Water heaters\n*   Heating, ventilation and air conditioning systems\n*   Plumbing systems END
 TITLE: Are Home Warranties Worth the Cost? CONTENT: How Much Does a Home Warranty Cost?\n-----------------------------------\nA basic home warranty policy costs $400 to $550 per year, according to the National Home Service Contract Association. However, your out-of-pocket costs could be higher or lower, depending on your contract and level of coverage. Your premium will likely skew higher if you opt to expand your policy beyond basic coverage. Many home warranty companies offer add-ons to cover everything from pools to additional refrigerators to electronics and more.\nAgain, you'll also have to pay a service fee every time your home warranty company sends someone out to assess damage or complete a repair. This generally runs anywhere from $35 to $100 per visit. END
 TITLE: Are Home Warranties Worth the Cost? CONTENT: How to Decide if You Need a Home Warranty\n-----------------------------------------\nA home warranty can be a worthwhile investment for homeowners who anticipate having to make repairs in the not-so-distant future. If you've just bought an older home, or have out-of-date home systems or appliances, comparing home warranty quotes could ultimately save you money in the long run. The average cost to install a new air conditioner, for example, is $4,631, according to data from HomeGuide. If things start breaking down within your home, having a warranty to fall back on could reduce financial stress.\nBut like any contract, it pays to read the fine print. Home warranties usually come with exclusions that may give you pause. Make sure you're clear on what appliances and systems are covered—and under what circumstances. In some cases, the company may decline to cover you if they can trace the problem back to improper maintenance. Things like pest damage, cosmetic defects and improper installation may also leave you high and dry.\nIt's worth noting that the home warranty company generally has the final word on replacement equipment. Even if your contract says they'll replace a broken appliance with something similar, there's no guarantee it'll meet your expectations. What's more, some installation expenses may not be covered. If, for example, a new water heater requires changing pipes or making structural modifications, that part of the bill could be on you. Again, read your contract carefully. END
 TITLE: What Is a Home Warranty Plan? CONTENT: How Does a Home Warranty Plan Work?\n-----------------------------------\nA home warranty is an agreement for \"the service, repair or replacement of major, built-in household appliances and systems on existing homes due to normal wear and tear,\" according to The National Home Service Contract Association (NHSCA), a nonprofit association for home service contract providers.\nHomeowners insurance protects you from liability and your home's structure and contents from perils such as fire and theft. It doesn't cover normal wear and tear on your home or its systems, however. Home warranties do, which is why they are often promoted as a complement to homeowners insurance.\nTo give you peace of mind when you buy an existing home, sellers often throw in a home warranty. When the warranty that came with your home runs out, you may choose to renew it. You can also buy a home warranty on your own at any time from a variety of providers.\nIf an appliance or system covered by your home warranty fails, you'll contact the home warranty company, which sends out a local service company. You'll pay a service fee, generally ranging from around $35 to $100 depending on your contract. If the repair person and the insurer determine that the problem is covered by your warranty, the home warranty company pays for repair or replacement up to the limits of your policy. END
 TITLE: What Is a Home Warranty Plan? CONTENT: What Does a Home Warranty Plan Cover?\n-------------------------------------\nAlthough specifics vary depending on your plan, provider and location, standard home warranties typically cover:\n*   Plumbing\n*   Heating system\n*   Electrical system\n*   Water heater\n*   Ducts\n*   Dishwasher\n*   Stove\/oven\n*   Garage door opener\n*   Garbage disposal\nMany home warranty companies let you buy coverage for air conditioning systems, refrigerators, washers and dryers, spas and swimming pool pumps at additional cost.\nHome warranties generally don't cover your home's structure, foundations, walls or workmanship. (In new homes, the builder may warranty these elements for a certain period.)\nHome appliances and systems usually aren't covered by a home warranty if:\n*   They aren't listed as covered in your home warranty contract\n*   The failure is due to a condition that existed before your coverage took effect\n*   The failure is due to anything other than normal wear and tear\n*   The item was installed incorrectly\n*   The item was modified\n*   You tried to repair the item yourself and made the problem worse END
 TITLE: What Is a Home Warranty Plan? CONTENT: Benefits and Drawbacks of Home Warranties\n-----------------------------------------\nHome warranties have some potential benefits. If your problem is covered, the home warranty company will pick up most of the bill—you'll just need to pay the service fee. A home warranty can also provide a \"one-stop\" solution to home repairs. Instead of searching for an electrician or plumber on your own, just call the home warranty company to have it taken care of.\nHowever, home warranties also have some drawbacks.\n*   **Caps**: Companies may cap coverage for each item at a certain dollar amount, which may not be enough to cover the cost of replacement or repair.\n*   **Restricted options**: The home warranty company selects the contractor used for diagnosis and repair; in most cases, you can't choose a contractor yourself.\n*   **Service fees**: You'll pay a charge for the service technician, even if the warranty claim is ultimately denied.\n*   **Limited reimbursement**: Some home warranties cover only the current, depreciated cost of an item, not its full replacement value. When appliances or systems are replaced, it will be with a comparable model, which may not be the same make or model you had. If a 10-year-old appliance breaks down, you might prefer to replace it with the latest model (with all the bells and whistles), but you generally won't have that option as part of your warranty.\n*   **Exclusions**: Home warranties typically have many exclusions. For example, a covered problem with your heating system might be denied unless you have documentation that maintenance was regularly performed according to the manufacturer's specifications. A plan that covers your refrigerator may not cover the fridge's icemaker. END
 TITLE: What Is a Home Warranty Plan? CONTENT: How Much Does a Home Warranty Cost?\n-----------------------------------\nThe price of a home warranty policy varies based on the company you buy from, what your policy covers and where you live. The NHSCA estimates a basic policy costs $400 to $550 annually; American Home Shield, a popular home warranty provider, says its plans cost on average from $500 to $700 per year.\nIs a home warranty worth the price? New systems or appliances may already be covered by a manufacturer's warranty, and you can generally buy extended warranties for new appliances if desired. Some credit cards extend the manufacturer's warranty if you pay with the card (and even if you use your card's rewards to pay). For example, the Chase Sapphire Preferred® Card gives you an extra one-year warranty on products with an eligible original U.S. manufacturer's warranty of three years or less that are purchased with the card.\nBefore buying a home warranty, carefully read the detailed terms and conditions. Understand what appliances and systems are covered and under what conditions. Contact the Better Business Bureau and your state's consumer protection agency to see if there are any complaints against the company.\nEven if you read the home warranty's terms and conditions, it can be difficult to know if the policy will pay out until you have a claim. Instead of spending money on a policy you may never use—or that may never pay out—it could make more financial sense to put the money into an emergency fund or home maintenance account. Then if an appliance or system in your home fails, you can tap your own funds, use a contractor of your choice to fix the item and, if it can't be repaired, purchase the replacement product you want. END
 TITLE: What Is a Home Warranty Plan? CONTENT: Financing Home Repairs\n----------------------\nSaving for home maintenance and repairs should be part of every homeowner's budget. If you need a major repair—such as re-piping your entire plumbing system—taking out a home equity loan, home equity line of credit or personal loan is another way to finance the project. Checking your credit report and credit score regularly helps to ensure your credit is always in good shape, which makes it easier to get a loan should you need one. END
 TITLE: Does Filing a Home Insurance Claim Raise Your Rates? CONTENT: How Does Filing a Claim Affect Your Home Insurance Premiums?\n------------------------------------------------------------\nWhen you contact your insurer to file a homeowners insurance claim, you'll be assigned a claim number and claims adjuster who will handle your claim. Generally, you'll submit documentation of the loss, and a claims adjuster will visit your home to survey the damage and estimate your payout.\nDifferent types of homeowners insurance claims may affect your premiums differently. A 2021 survey of claims found weather-related claims generally have the least effect on premiums, while fire-related claims have the biggest effect.\nSource: Insurance.com\nKeep in mind that these figures are averages, and depending on your situation, your home insurance premiums may not rise at all. A 2019 Consumer Reports survey found that 50% of respondents who filed a home insurance claim in the previous three years didn't experience a premium hike; just 12% said premiums rose by $200 or more annually. END
 TITLE: Does Filing a Home Insurance Claim Raise Your Rates? CONTENT: What Else Affects Homeowners Insurance Rates?\n---------------------------------------------\nFiling a claim isn't the only thing that can make your homeowners insurance premiums go up. Other factors that could increase your rates include:\n*   **The age of your home**: As your home gets older, it may become more vulnerable to damage from aging systems such as leaky roofs or old pipes.\n*   **Risky elements**: Adding features that could cause injury or damage can raise your premiums. These include a wood furnace or wood stove; a swimming pool, trampoline or other potentially dangerous play area; or owning certain breeds of dogs.\n*   **Severe weather**: If your part of the country has experienced an increase in natural disasters, insurers will likely raise your rates the following year, regardless of whether you filed a claim. Frequent catastrophes increase the odds that your insurance company will have to pay out claims, so they'll generally raise rates to make up for their higher costs.\n*   **Real estate and construction costs**: If home values or construction costs are rising in your area, homes will cost more to repair or replace. As a result, home insurance premiums may rise too.\n*   **Your credit**: In states where it's allowed, insurance companies typically review your credit-based insurance score credit to assess your insurance risk, which is the likelihood that you'll end up filing a claim. This type of score is distinct from the credit scores lenders use, and is calculated based on different factors.\n*   **C.L.U.E. information**: The Comprehensive Loss Underwriting Exchange (C.L.U.E.) is a database of information about auto and homeowners insurance claims maintained by LexisNexis. Home insurance claims you've filed for your property in the past seven years—even if filed by a previous homeowner—will likely appear in the database and may affect your insurance costs. END
 TITLE: Does Filing a Home Insurance Claim Raise Your Rates? CONTENT: How to Decide When to File a Claim\n----------------------------------\nSince filing a homeowners insurance claim can have a big impact on your premiums, should you try to avoid making a claim?\nIf the cost of the damage is not much more than your deductible, it likely won't be worth the risk that filing a claim could raise your rates. For instance, if repairing broken windows will cost $1,500 and your insurance deductible is $1,000, filing a claim would only net you $500 and could cause your rates to rise.\nIf your insurance company gives you a discount for being claim-free, filing a claim will cost you that discount.\nAlso consider whether you've filed any claims in the recent past. Even if the claim was with another insurer, it remains on your C.L.U.E. report for seven years. Filing another claim while previous claims still appear on your C.L.U.E. report could cause your premiums to go up.\nPrevious claims by prior homeowners can also affect your home insurance rates. If you've lived in your home less than seven years and aren't sure if the prior owners ever filed a claim, contact LexisNexis for a copy of the C.L.U.E. Home Seller's Disclosure Report, which will list any insurance claims filed on the home in the last five years. You can get a copy online, by calling 888-497-0011 or by emailing .\nIt may be frustrating not using the insurance that you've paid for. However, homeowners insurance is meant to help with major catastrophes, not with comparatively small home repairs. If you suffer a major disaster, by all means file a claim. If the stakes are lower, weigh the benefits of filing a claim against the risk of higher premiums in the future. END
 TITLE: Does Filing a Home Insurance Claim Raise Your Rates? CONTENT: Ways to Lower Your Home Insurance Premiums\n------------------------------------------\nIf you need to file a claim and are worried your rates will go up, there are steps you can take to save on insurance. Consider increasing your deductible or bundling home and auto insurance. You can also make safety improvements such as removing dry brush near your home if you live in a fire-prone region, installing a security system or upgrading old plumbing. According to Consumer Reports, these actions could potentially save you 6% percent or more on insurance premiums.\nImproving your credit-based insurance score may also help keep your rates down. While this score is different from credit scores used by lenders, it takes into account many of the same factors, such as your history of on-time payments and your credit utilization ratio. Check your credit score; if it could use improvement, your credit-based insurance score probably can too. Reducing debt, bringing past-due accounts current and paying your bills on time can help raise your scores—and possibly lower your premiums. END
 TITLE: What is Mortgage Protection Insurance? CONTENT: How Does Mortgage Protection Insurance Work?\n--------------------------------------------\nMortgage protection insurance operates like term life insurance—you make premium payments for the duration of the policy term and are only covered while the policy is in place. Many insurers issue policies that are the same length as the term of the covered mortgage, but policies may be available in five- or ten-year increments. Once you reach the end of the term, you are no longer covered.\nIf you die during the coverage period, the death benefit is paid to the mortgage lender. Your loved ones will not directly receive any of the proceeds from the policy, but the policy will pay the mortgage in full so they do not have to worry about making house payments. Some mortgage protection policies also cover mortgage payments for a set period if you become unemployed or disabled.\nDon't confuse mortgage protection insurance with other forms of mortgage insurance. The other types work to protect the lender if you default on the loan and are usually mandatory if you make a low down payment. They won't benefit your family if you pass away before your mortgage is paid in full. These types of mortgage insurance are:\n*   **Private mortgage insurance (PMI)**: PMI covers conventional loans from a bank or credit union. Most PMI premiums are paid monthly and cost between 0.5% and 2% of the total loan amount.\n*   **Federal Housing Authority (FHA)** **mortgage insurance**: Also called a mortgage insurance premium, it covers FHA loans that do not require a large down payment. An upfront mortgage premium of 1.75% applies, and you'll pay an annual mortgage insurance premium between 0.45% and 1.05% for the life of the loan.\n*   **U.S. Department of Agriculture (USDA) mortgage insurance**: This covers USDA loans that don't require a down payment. A monthly mortgage insurance premium of 0.5% of the loan amount applies.\nThere's also homeowners insurance, which is another type of policy that covers your home and the personal property within it in cases of natural disasters, accidents, theft and other events. END
 TITLE: What is Mortgage Protection Insurance? CONTENT: Pros and Cons of Mortgage Protection Insurance\n----------------------------------------------\nIt's important to understand how mortgage protection insurance works and consider the pros and cons before deciding if a policy is right for you.\nSome key benefits to keep in mind:\n*   **Peace of mind**: You may feel at ease knowing mortgage payments won't be a burden to your family if you pass away.\n*   **Possibly cheaper than life insurance, a common alternative**: Suppose you can't get affordable life insurance because of your age or health. In that case, a mortgage protection policy with affordable premiums may be a better fit.\n*   **No underwriting**: When you apply for life insurance, an underwriter will evaluate your application to determine how much risk you pose to the insurer. A medical exam is usually required, and if the results are unfavorable, you may be denied life insurance. Mortgage protection policies do not require underwriting and are generally easier to secure.\nThere are also drawbacks of mortgage protection insurance to consider:\n*   **Limited death benefit**: A term life insurance policy gives your family the flexibility of making mortgage payments and covering other expenses after you pass away. But mortgage protection insurance is limited in scope. It provides no tangible benefit to your loved ones beyond paying the mortgage in full.\n*   **The value of the policy decreases over time**: The premium payment will remain the same over the policy term; however, the death benefit will be reduced as time progresses to match the loan's outstanding balance.\n*   **A life insurance policy may be the wiser move**: Given that mortgage protection insurance will only cover your mortgage, and won't replace lost wages or cover end-of-life expenses such as burial, you may instead opt for a life insurance policy. A life insurance policy pays out if you die while the policy is in place, but the beneficiary can use the payment for anything—including the mortgage. END
 TITLE: What is Mortgage Protection Insurance? CONTENT: How to Decide Whether You Need Mortgage Protection Insurance\n------------------------------------------------------------\nYou're not required to purchase mortgage protection insurance—it's up to you to decide if this coverage is a worthwhile investment.\nA policy may make sense if your finances aren't in tip-top shape and you don't have enough life insurance to cover the mortgage payments or pay off the loan if you pass away. However, you may not need mortgage protection insurance if you have a life insurance policy that can pay off the loan, cover your final expenses and replace your income for a set period. It also may not be a smart financial move if, on top of having adequate life insurance, you have job security and are in good health.\nIf you're undecided, consult with insurance professionals to learn more about your options and decide if mortgage protection insurance is a good fit for you, or if another type of coverage makes more sense. END
 TITLE: What is Mortgage Protection Insurance? CONTENT: Where to Get Mortgage Protection Insurance\n------------------------------------------\nAre you ready to purchase mortgage protection insurance? You can shop for policies through life insurance and private insurance companies. Also, check with your lender to see if they sell mortgage protection insurance—if not, they may be able to refer you to a company that can help.\nGet several quotes and compare your options to ensure you're getting the most value for your dollar. Ask about bundle discounts if you're considering coverage through a provider that you already have another type of insurance with. END
 TITLE: How to Make a Home Inventory List for Your Insurance CONTENT: Why Do You Need a Home Inventory?\n---------------------------------\nWhen you file a home insurance claim for personal property, the insurance company will want \"proof of loss\"—documentation of your ownership and the item's value. A home inventory helps ensure you're fully compensated for your property.\nIn the wake of a catastrophe, you may need a home inventory to prove eligibility for tax deductions or disaster assistance. Having a detailed accounting on hand saves you the headaches of listing all your possessions from memory.\nFinally, a home inventory can help to ensure your homeowners insurance includes adequate personal property coverage. As you catalog your possessions, you'll likely be surprised at how much it would cost to replace everything in your home—and you may realize you're underinsured. END
 TITLE: How to Make a Home Inventory List for Your Insurance CONTENT: Anything in your house that's not \"permanently installed\" is considered personal property. For example, wall-mounted light fixtures are not personal property, but table lamps are. If your homeowners insurance covers belongings in a storage facility or in a garage, shed or other outbuilding on your property, inventory those too.\nTo make the home inventory process more manageable, break it into smaller steps by starting with your most expensive property, such as furniture and electronics, or going room by room. Walking through each room and taking video or photos of its contents is a convenient method that lets you zoom in on model or serial numbers. While recording, describe each item in detail, including manufacturer, model, when you bought it and the price you paid for it. Be sure you're providing the correct information—exaggerating or lying about an item's value is considered insurance fraud.\nGather receipts, contracts or other purchase records that document the value of your belongings. Claims adjusters won't expect receipts for everything you own, but having them always helps. In lieu of a receipt for a recent purchase, the listing for the item online may suffice, or you can provide bank or credit card statements that include the purchase. For things you didn't pay for, such as gifts or items inherited from a relative, do your own research to estimate the replacement cost.\nA standard home insurance policy may not cover the full value of certain items, such as electronics, jewelry, furs or collectibles; you'll need to buy additional coverage to ensure these items are protected.\nWhat about when you have dozens of similar items, like clothing, dishware or books? Thankfully, you don't need to catalog every pair of socks. Instead, you should count the number of items in each general category, calling out any that are especially valuable (for example: 35 hardcover books and one first edition of Dickens' \"Dombey and Son\").\nYour insurance company may have apps, checklists or worksheets you can use to conduct your home inventory. If not, an online search will uncover several tools to choose from, such as Nest Egg for iOS or HouseBook for Android. It's generally simpler to create a digital home inventory than a written one. A digital inventory is easier to store, update, keep safe and send to your insurance company for a claim. END
 TITLE: How to Make a Home Inventory List for Your Insurance CONTENT: What to Do With Your Home Inventory\n-----------------------------------\nKeep copies of your home inventory, including photos, videos, receipts and other documentation, in several places. For example, you might keep a copy of your written inventory in a fireproof safe at home, one in a safe deposit box and one at a friend's house. Preserve digital copies of your inventory in the cloud and email one to yourself. Having a copy inventory stored somewhere outside your home means that if your belongings are stolen or destroyed, your list will be out of harm's way.\nWhen you file an insurance claim for personal property, you'll use your home inventory to confirm the value of the lost items. Some home insurance policies pay \"actual cash value\"—that is, the price the item currently sells for today—which means you may not receive enough for older items to replace them with comparable new ones. A \"replacement cost\" policy pays to replace your belongings with equivalent new ones. However, you'll typically receive actual cash value first and be reimbursed for the replacement cost only after you're replaced the items and submitted receipts to the insurer. END
 TITLE: How to Make a Home Inventory List for Your Insurance CONTENT: Protect Your Property With a Home Inventory\n-------------------------------------------\nBe sure to update your home inventory regularly. You can do this annually when you review your homeowners insurance coverage, once a month, or whenever you make a major purchase—whichever schedule you're most likely to stick to.\nCreating a thorough home inventory takes some effort, but if you ever have a major home insurance claim, you'll be thankful you took the time to catalog your home's contents. END
 TITLE: 9 Ways to Save Money on Homeowners Insurance CONTENT: 1\\. Raise Your Deductible\n-------------------------\nWhenever you file an insurance claim, you'll have to pay a certain amount out of pocket before your insurance coverage kicks in. This is called the _deductible_, and homeowners policies generally have a minimum deductible of $500 or $1,000. Increasing your deductible can lower your premiums, but you should only do so if you have enough savings to handle the higher deductible if necessary. END
 TITLE: 9 Ways to Save Money on Homeowners Insurance CONTENT: 2\\. File Claims Judiciously\n---------------------------\nWhen setting your premium rates, home insurance companies review all the insurance claims filed on your home in the past seven years. If you've made a lot of claims, they'll consider you more likely to file claims in the future—and may increase your rates accordingly. Before filing a claim, carefully consider the cost of the loss or repair, as well as your deductible. For instance, if you file a claim for $1,500 worth of repairs to your roof when you have a $1,000 deductible, insurance will cover only $500, and you'll have a claim on your record. In the long run, paying for the repairs yourself instead of filing a claim could keep your premiums down. END
 TITLE: 9 Ways to Save Money on Homeowners Insurance CONTENT: 3\\. Play It Safe\n----------------\nSome insurance companies reduce your premiums if you take steps to reduce your risk, such as installing an alarm system, deadbolt locks or other devices that help protect against burglaries. You might get a discount for having smoke detectors or a fire alarm; living in a guard-gated community; or installing storm shutters if you live in a hurricane zone. Updating your older home with modern electrical, heating and plumbing systems can also help. Before investing in such upgrades, check with insurance companies to see which discounts they offer. END
 TITLE: 9 Ways to Save Money on Homeowners Insurance CONTENT: 4\\. Address Risks to Kids\n-------------------------\nHome features that could put children in danger, such as trampolines, swimming pools, treehouses or water features, are called \"attractive nuisances\" because they pose a risk to children on your property. If children are injured, you could be held liable, even if they were trespassing. Removing the nuisance or barricading it from children by erecting gates or fencing can help reduce your homeowners insurance premiums. END
 TITLE: 9 Ways to Save Money on Homeowners Insurance CONTENT: 5\\. Bundle Your Insurance Policies\n----------------------------------\nYou may be able to secure a discount if you buy more than one policy through the same insurance company, such as homeowners insurance and auto insurance. This is known as \"bundling\" and can mean significant savings—plus the convenience of having your policies in one place. When looking for homeowners insurance, start with your car insurance company and see what kinds of discounts they can offer. END
 TITLE: 9 Ways to Save Money on Homeowners Insurance CONTENT: 6\\. Investigate Other Discounts\n-------------------------------\nDo a little sleuthing, and you'll discover dozens of ways to save on your homeowners insurance premiums. For example, you might qualify for reduced rates through membership organizations, professional or business associations, alumni groups, your employer or other affiliations. Some insurance companies offer discounts for retirees, loyalty discounts for sticking with the same insurer, or discounts if you go a certain number of years without filing a claim. END
 TITLE: 9 Ways to Save Money on Homeowners Insurance CONTENT: 7\\. Modify your coverage\n------------------------\nHomeowners insurance includes structure insurance, liability insurance, personal property insurance for the home's contents, and additional living expenses coverage that can pay for you to live elsewhere if your home becomes uninhabitable. You can select different levels and dollar amounts for each type of coverage. Coverage that pays more in the event of a claim will have higher premiums. For instance, personal property insurance that covers only the current value of damaged possessions costs less than coverage to replace them with brand-new items. END
 TITLE: 9 Ways to Save Money on Homeowners Insurance CONTENT: 8\\. Improve Your Credit\n-----------------------\nIn most states, insurance companies can check your credit before issuing a homeowners insurance policy. They may use your credit-based insurance score, which is a special credit score used by insurance companies to assess your risk of filing a claim. If you have poor credit, you can probably still get homeowners insurance, but it might cost more than if you had good credit.\nAlthough your credit-based insurance score is different from the credit score lenders use, it's based on many of the same factors, such as your payment history, your overall credit utilization and whether you have any defaults or collections on your credit report. Credit-based insurance scores aren't available for consumers to view, but checking your credit score will give you a good idea of whether your credit-based insurance score needs improvement. If so, you may want to work on paying down debts, bringing accounts current, making all your payments on time and avoiding new credit applications. END
 TITLE: 9 Ways to Save Money on Homeowners Insurance CONTENT: 9\\. Compare Prices\n------------------\nThere are dozens of companies that sell homeowners insurance, ranging from traditional insurance firms to online-only companies. Checking out all the options can earn you substantial savings. Start by talking to an insurance agent to determine what kind of coverage you need. Then get quotes from a variety of insurance providers, being sure to compare the same type of insurance and amount of coverage.\nCost is a factor when buying homeowners insurance, but you shouldn't skimp on service and reliability. Be sure to check into the company's financial stability using sources such as A.M. Best and S&P. Read online reviews and ratings to see how good the company's customer service is. If disaster strikes your home, having a helpful, responsive insurance agent on your side can make all the difference in getting through a difficult time. END
 TITLE: How to Split Bills With Roommates CONTENT: 1\\. Decide Which Expenses to Split and How\n------------------------------------------\nStart by determining which expenses will be shared and how you'll divvy them up. For example, you may want to split the rent evenly, or you may decide the roommate with the bigger bedroom should pay more. Generally, it's easiest to split utility and streaming bills evenly, since keeping track of who took the longest showers or watched the most Netflix gets complicated and can cause squabbling. Unless you eat every meal together, you'll probably want to buy your own groceries too. END
 TITLE: How to Split Bills With Roommates CONTENT: 2\\. Create a Roommate Agreement\n-------------------------------\nPutting your payment decisions in writing makes it easy to settle arguments when they arise. In addition to covering financial matters such as rent, bills and security deposit, a roommate agreement can also help you work out solutions to common causes of conflict, such as acceptable noise levels, how long visitors can stay and who cleans the bathroom. You can find sample roommate agreements at legal self-help sites such as RocketLawyer, LegalZoom and Nolo. END
 TITLE: How to Split Bills With Roommates CONTENT: 3\\. Decide Who's in Charge\n--------------------------\nWho will collect the money and pay the bills? Some people put one roommate in charge of paying for everything, but this could lead to resentment if the \"bill collector\" starts to feel burdened. Another option is putting the most responsible roommate in charge of collecting and paying rent, then parceling out responsibility for utilities to the others. (Bonus: You can have bills in your name added to your credit history if you sign up for Experian Boost™† , a free service that reports on-time payments for utilities, cellphone service and select streaming services to your Experian credit file.) END
 TITLE: How to Split Bills With Roommates CONTENT: 4\\. Set Up a System\n-------------------\nYou'll need a way to track when bills are due, when money has been collected from each roommate and when the bills have been paid. You could keep a chart on the fridge or maintain a shared spreadsheet to track this info, or keep it simple with an app.\nHere are some to consider:\n*   Use Splittr, Splitwise and SettleUp to add expenses and have the app divvy them up for you. Split expenses proportionately if certain people benefited more or less from the expense (like the roommate with the bigger bedroom). Add recurring expenses, request payments and track payments. All three apps have free versions with ads or ad-free paid versions with a few extra features.\n*   You could use Venmo to request and send money for free for most transactions. It's primarily designed for payments, and you can use it to split payments you make via the platform.\n*   Designed for renters, Zently is a free app that sends a free electronic funds transfer or mails a check to your landlord. It also lets you split and settle bills with your roommates and pay directly from your bank account. If you choose, Zently can also report your rent payments to credit bureaus, which helps to build a credit history. END
 TITLE: How to Split Bills With Roommates CONTENT: Bill-Splitting Pitfalls to Avoid\n--------------------------------\nOnce your bill-sharing plan is set up, make sure it stays on track by watching for common pitfalls and being prepared to avoid them.\n*   **Running out of money**: You owe $1,000 for rent, but only have $1.29 in your bank account. Creating a budget for yourself can help prevent this predicament and is a smart move whether or not you've got roommates.\n*   **Irresponsible roommates**: If you don't know a potential roommate well, go over their financial situation with them before they move in. You can't check a roommate's credit, but you could ask them to show you a copy of one of their credit reports, which they can access at AnnualCreditReport.com. You can also ask to see pay stubs, W-2 tax forms or bank statements to verify their income and see if they can afford the rent.\n*   **Unexpected expenses**: When a party gets out of control or a pet has an accident, you may need to pay for repairs or cleanup. Consider setting up a group emergency fund for such situations; while you're at it, start building your own emergency fund.\n*   **Overpaying or underpaying**: It's easy to lose track of who paid what and when, especially if recurring amounts are similar each month. Keeping on top of your paper- or app-based tracking system will help.\n*   **Lending your roommates money**: If a roommate can't make a payment one month, should you cover them? Frequently spotting a roommate for bills could lead to resentment and leave you short of funds. Emergency funds and roommate agreements can help prevent this.\n*   **Late payments**: Late payments can lead to late fees or utilities being shut off. Prevent late payments by collecting money from your roommates well before bills are due so delays caused by bank holds or weekends won't prevent you from paying. Missing a payment due date can also damage the credit score of the roommate whose name is on the bill if the account is sent to collections. Most landlords don't report rent payments to credit bureaus, but late payments can negatively affect your rental history, which landlords check via a tenant screening report when reviewing your rental application. END
 TITLE: How to Split Bills With Roommates CONTENT: Manage Shared Expenses Responsibly\n----------------------------------\nSharing an apartment with roommates can build lifelong friendships—as long as everyone lives up to their financial responsibilities. Keep your home harmonious and your credit score in good shape by creating a plan for managing shared expenses. Consider setting up free credit monitoring to keep tabs on your credit. Paying bills on time can prevent damage to your credit history, making it easier to buy a home of your own someday. END
 TITLE: Are Health Insurance Premiums Tax-Deductible? CONTENT: Any health insurance premiums you pay out of pocket for policies covering medical care are tax-deductible. (Medical care policies cover treatment including hospitalization, surgery and X-rays; prescription drugs and insulin; dental care; lost or damaged contact lenses; and long-term care, with some limitations.) When preparing your taxes, you can deduct these expenses for yourself, your spouse and your dependents.\nPremiums for insurance purchased through COBRA are deductible, as are Medicare premiums for Part B and D. If you are not enrolled in Medicare under Social Security and are not a former government employee who paid Medicare tax, premiums paid for Medicare A are also tax-deductible.\nIf you buy health insurance through the federal insurance marketplace or your state marketplace, any premiums you pay out of pocket are tax-deductible.\nIf you are self-employed, you can deduct the amount you paid for health insurance and qualified long-term care insurance premiums directly from your income. This reduces your adjusted gross income (AGI), which lowers your tax bill. You may also be able to deduct medical and dental expenses as itemized deductions on Schedule A of IRS Form 1040.\nWhether you're employed or self-employed, however, you can't deduct _all_ of your medical expenses—only the amount exceeding 7.5% of your adjusted gross income. END
 TITLE: Are Health Insurance Premiums Tax-Deductible? CONTENT: Health Insurance Premiums That Aren't Tax-Deductible\n----------------------------------------------------\nNot all health insurance premiums are tax-deductible. You can't deduct the portion of your premiums that your employer pays, for example, or any premiums that come out of your paycheck pretax.\nIf you are enrolled in Medicare under Social Security, your Medicare A premiums are paid by Social Security and aren't tax-deductible.\nDoes a tax subsidy cover part of your premiums for health insurance through a state or federal insurance marketplace? If so, you can't deduct that portion of your premiums—just the amount you pay out of pocket. END
 TITLE: Are Health Insurance Premiums Tax-Deductible? CONTENT: What Medical Expenses Are Tax-Deductible?\n-----------------------------------------\nHealth insurance premiums aren't the only medical costs that may be tax-deductible. If you itemize deductions, you can also deduct qualified medical expenses for yourself, your spouse and your dependents. Deductible medical expenses include payments for:\n*   Medical practitioners including doctors, dentists, chiropractors, psychiatrists and psychologists\n*   Inpatient hospital care\n*   Residential nursing home care, if the person is in the nursing home primarily for medical care. If that's not the main reason the person is in a nursing home, you can only deduct the costs for medical care, not meals and lodging.\n*   Acupuncture treatments\n*   Inpatient treatment for alcohol or drug addiction\n*   Participation in a stop-smoking program and for prescription drugs to ease nicotine withdrawal\n*   Weight-loss programs for diseases diagnosed by a doctor, including obesity\n*   Prescription drugs and insulin\n*   Admission and transportation to a medical conference related to your, your spouse's or your dependent's chronic illness\n*   False teeth, reading or prescription eyeglasses, contact lenses, hearing aids, crutches and wheelchairs\n*   A service animal to assist a person with physical disabilities\n*   Transportation to medical care that qualifies as a medical expense, such as taxi, bus or train fare; ambulance costs; the out-of-pocket cost of using your personal car; and tolls or parking fees\n*   Dental treatments and preventative dental care\nThe total amount you deduct for medical expenses must be reduced by any reimbursement you receive, whether the reimbursement is paid to you or to the medical provider or facility. END
 TITLE: Are Health Insurance Premiums Tax-Deductible? CONTENT: Should You Take the Standard Deduction or Itemized Deduction?\n-------------------------------------------------------------\nThere are two main questions to ask when deciding whether to itemize:\n**Are your medical expenses greater than 7.5% of your AGI?** You can only deduct the portion of your medical expenses that exceeds this amount. For example, if your AGI is $100,000 and your medical expenses were $10,000, you could only deduct $2,500 of that amount ($10,000 - $7,500).\n**Do your itemized expenses exceed the standard deduction?** The standard deduction is a set amount you can deduct from your taxable income to reduce your tax liability. For tax year 2021, the standard deductions are:\n*   $25,100 for married couples filing jointly\n*   $12,550 for single taxpayers and married individuals filing separately\n*   $18,800 for heads of households\nAdditional deductions are allowed for blind people and those 65 or older. If someone else claims you as a dependent, your standard deduction may be lower.\nIf your total deductions are higher than the standard deduction, it may make sense to itemize. Medical expense deductions aren't the only factor to consider. You may also want to itemize deductions if you:\n*   Paid mortgage interest and property taxes on your home\n*   Made significant charitable contributions\n*   Suffered major casualty or theft losses that weren't insured\nSome people don't qualify for the standard deduction. How deductions affect your state tax bill may also factor into your decision. For more information, visit the IRS website, which has a tool you can use to see if you can deduct medical expenses, use tax preparation software or talk to your tax preparer. END
 TITLE: Are Health Insurance Premiums Tax-Deductible? CONTENT: Lower Your Health Care Costs\n----------------------------\nItemizing medical expenses is just one way to lower your health care costs. Your employer may offer a Flexible Spending Account (FSA), or you may be able to set up a Health Savings Account (HSA); both provide tax advantages to reduce the cost of health care.\nIf you pay any health insurance premiums out of pocket, know that a late or missed payment can negatively affect your credit score. Consider setting up automatic payments to ensure that both you and your credit stay in good health. END
 TITLE: How to Do a Balance Transfer CONTENT: What to Do After You Make a Balance Transfer\n--------------------------------------------\nOnce your balance transfer is complete, follow these steps to help pay off your debt and improve your credit score.\n*   **Keep your old card open.** It's best not to close your old credit card, even if there's a zero balance and you don't plan to use it in the future. Closing an existing card will reduce the amount of credit available to you, which could cause your credit utilization to climb and result in credit score damage. Instead, put the card away somewhere safe so you won't be tempted to use it.\n*   **Make a payment plan.** Commit to paying off the transferred balance before the introductory period ends. The easiest approach to this is dividing your balance by the number of months in your introductory period and pay that amount each month. Treat this payment as non-negotiable, like a car loan, and before you know it, that balance will be gone.\n*   **Make all your payments on time.** To prevent credit score damage and other penalties, do not miss a payment on your new credit card. It may help to set up monthly automatic payments so you never have to think about it and never miss a payment—especially if a late payment will cost you that 0% APR.\n*   **Refrain from using your new credit card.** It can be tempting to start buying stuff with that shiny new card, especially if you can earn perks like cash back or a sign-up bonus for doing so. But piling more debt onto a card that you're trying to pay off will require bigger monthly payments in order to get out of debt.\nOnce your balance transfer is paid off, you can keep credit card debt from creeping up again by reviewing your budget for ways to spend less and save more. If you have other debts after your balance transfer is paid off, take the amount you were putting toward your balance transfer card each month and use it to pay them down. END
 TITLE: How to Do a Balance Transfer CONTENT: How Do Balance Transfers Impact Your Credit?\n--------------------------------------------\nA balance transfer can affect your credit in a few ways, both positively and negatively. When you apply for a balance transfer card, the lender will make a hard inquiry into your credit report. This can cause your credit score to dip temporarily, but it should bounce back within several months as long as you aren't applying for any other credit cards or loans.\nKeeping old credit card accounts open and unused after you've transferred their balances could decrease your credit utilization ratio, which can help boost your credit score. Your credit utilization ratio measures how much of your available credit you're actually using; adding a new card lowers the ratio by increasing the amount of credit available to you. A credit utilization ratio of less than 30% can positively affect your credit score. On the other hand, if the balance transfer pushes your new card's utilization over 30%, your credit score could drop. As you pay off your balance and reduce your utilization again, this factor's effect on your credit scores should be blunted.\nKeeping an eye on your credit score is the best way to see how a balance transfer impacts your credit. Consider signing up for free credit monitoring so you can get alerts whenever your credit score changes. And remember, a temporary credit score drop may be worth it in the long run if the new card allows you to get a handle on your debt. END
 TITLE: How to Do a Balance Transfer CONTENT: Make the Most of a Balance Transfer Card\n----------------------------------------\nMaking your new credit card's payments on time and chipping away at your balance will reduce your debt and can help improve your credit score. Once your transferred balance is paid off, keep up good financial habits like maintaining a low balance and paying your bills on time, and watch your credit score reap the rewards. END
 TITLE: Should I Make a Balance Transfer? CONTENT: Is a Balance Transfer Good for Me?\n----------------------------------\nBalance transfers are especially effective if you have a good enough credit score to qualify for a new card that comes with a low or 0% introductory APR. Typically, balance transfer cards offer low APRs for set introductory periods—0% APR for 18 months, for example—for people with good credit scores.\nBecause the main objective of transferring a balance is to save money on interest over time, the lower your new APR, the better. And while you may be able to get approved for a balance transfer card with fair or poor credit, the APR you end up with may not make the transfer so worth it.\nBefore applying for a balance transfer card, get a free copy of your credit reports and scores so you understand what types of cards you may have better chances of getting approved for.\nWhen considering whether a balance transfer to a new card is a good idea for you, also think about whether you'll be able to pay off the transferred balance before the low APR introductory period ends. If you're pretty sure you'll continue to carry a sizable balance once that promotion ends—and the interest rate increases—a balance transfer may not be the best way to deal with your existing credit card debt. If you have a plan to pay off all or most of your debt during the introductory period, however, a balance transfer card could save you quite a bit in interest charges. END
 TITLE: Should I Make a Balance Transfer? CONTENT: What to Consider Before Making a Balance Transfer\n-------------------------------------------------\nWhile the basics of balance transfer cards are simple, some of the finer details aren't. Let's say your card has an introductory APR of 0% for 12 months on transferred balances. This means that any balances you transfer to the new card will be charged 0% APR for 12 months. Simple, right? Yes, if you only plan to use the card to transfer a balance and pay down your debt.\nWhen you dive into the fine print, however, you may find that some cards have different APRs for new purchases. Certain cards also stipulate that if you make any new purchases, you'll have to pay your balance in full each month—including the transferred balance—to avoid incurring interest.  \nAlso consider the fees and other details associated with transferring a balance to certain cards. Balance transfer cards typically charge a fee of 3% to 5% on the transfer amount, with some stipulating a minimum charge, such as $20. Some cards also have clauses that strip you of your introductory APR if you make any of your payments late.\nBecause the objective of transferring a balance is to save money over time, researching the fees and costs associated with the specific cards you're considering is crucial to making the transfer worth it. Read through each card's fine print, and make sure you know all the specific details before sending in any card applications. END
 TITLE: Should I Make a Balance Transfer? CONTENT: How Do I Get a Balance Transfer Credit Card?\n--------------------------------------------\nGetting a balance transfer credit card is as simple as getting any other card: Once you pick the one you want, just apply. But before you do, there are a few things you can do to understand which card is right for you.\nFirst, figure out what your current APRs are on your existing credit card debt. You want to make sure your new APR is lower than what you're already paying. Then take a look at your credit reports and scores to see what type of cards you may get approved for. Elite credit cards with valuable rewards are geared toward people with good credit, so knowing where you stand will help you avoid denials and choose the card that's right for you.\n> Find balance transfer credit cards in Experian CreditMatch™.\nConsider using Experian CreditMatch™, a tool that uses your FICO® Score☉ to help you find credit cards. You can also browse through Experian's credit card marketplace to get details on balance transfer cards from our partners. END
 TITLE: Should I Make a Balance Transfer? CONTENT: What to Do After Getting a Balance Transfer Credit Card\n-------------------------------------------------------\nCongrats! You got approved and just received your balance transfer card. The first thing you should do is start transferring any balances you have. Each card will have a unique process you'll need to follow to transfer balances, so call your card issuer for instructions.\nTransfer your balances early rather than later. If you have an introductory APR, you'll get the most value if you utilize it for as long as you need. Remember that once the introductory period is over, your APR will jump to a higher rate and your remaining balance will start accruing interest. Plan to pay as much as possible toward your debt during that introductory period to avoid high interest charges once it ends.\nAlso plan how you will use the card. If you are using the card for the sole purpose of getting rid of your existing debt, then consider not using this card for new purchases. Remember that new purchases are often not included in the promotional APR and can sometimes result in you losing your promotional rate. END
 TITLE: Should I Make a Balance Transfer? CONTENT: Will a Balance Transfer Impact My Credit Score?\n-----------------------------------------------\nIf used properly, a balance transfer card will help you pay down your existing debt—which should lower your credit utilization ratio and may help boost your credit scores.\nKeep in mind, however, any time you apply for new credit, a hard inquiry is recorded in your credit file and will remain there for up to two years. Depending on what's in your credit file, and how many recent inquiries you've had, applying for a new credit card could have a temporary negative impact on your scores. If you don't know how many recent inquiries you've had, check your credit reports and scores to see what has been recorded in your credit file. You can get a free copy of your credit reports and scores from Experian.\nIn addition, applying for new credit may impact your credit scores if you already have a balance transfer card and still have a balance once the introductory period is up.\nFinally, make sure once you have the balance transfer card, you make all your payments on time. Payment history is the biggest factor in your credit scores, so any late payments can have a negative impact on your scores.\nIf you decide a balance transfer card is a good option for you, be sure to find the right card for your needs, make all your payments on time, and work to pay off your debt as quickly as possible. With the right strategy, your balance transfer could put a lot more money in your pocket. END
 TITLE: 4 Types of Budget Plans to Know About CONTENT: 1\\. Envelope System\n-------------------\nThe envelope system is an old-fashioned approach to budgeting that typically relies on cash in physical envelopes.\nYou'll start by determining how much you typically spend (or how much you'd prefer to spend) in different categories, such as rent, groceries and entertainment. Once you've determined an appropriate amount for your spending in each category, you'll label an envelope for each one and put the corresponding amount of cash in the envelope.\nOnce you've used up all the cash in an envelope, you won't be able to spend any more money in that category unless you pull cash from another envelope. Budgets are intended to keep you disciplined, however, and continually moving around money could have a domino effect that impacts expenses you can't afford to cut back on.\nAlso, keep in mind that you may not be able to make some payments in cash. While you don't need to set aside an envelope for these bills, you'll still need to account for them as you determine how much to allocate for other spending categories.\nThe envelope budgeting system can be a good idea for someone who prefers to use cash and wants to be strict with how they manage their money. If you're not a cash user but like the sound of this method, the features of your online banking software may make it possible to do something similar. END
 TITLE: 4 Types of Budget Plans to Know About CONTENT: 2\\. 50\/30\/20 Plan\n-----------------\nIf you want a simpler approach to managing your money, the 50\/30\/20 budgeting method could be a better approach for you.\nWith the 50\/30\/20 plan, there are only three spending categories you'll need to keep track of: necessary expenses, discretionary expenses and financial goals. As a benchmark, the plan works out so that 50% of your expenses go toward necessities, 30% goes toward your lifestyle and 20% goes toward financial goals like paying off debt, saving and investing.\nThat said, you can come up with your own ratios based on your current situation and your goals. For example, if you have a lot of debt or a small emergency fund, it may make sense to put more than 20% of your budget toward those goals while also cutting back on discretionary spending.\nThis budgeting plan can be good if you think too many budgeting categories will be overwhelming and you prefer a more straightforward approach. END
 TITLE: 4 Types of Budget Plans to Know About CONTENT: 3\\. Zero-Based Budget\n---------------------\nThe zero-based budgeting method works similarly to the envelope system but with a couple of key differences. First, you don't have to use envelopes to keep track of your money, and second, you're not restricted to using cash.\nThe main concept behind a zero-based budget is that you give every dollar you earn a purpose—in the end, your monthly expenses should equal your monthly income. But this doesn't mean you're supposed to spend every dime that comes in every month. In fact, this approach is all about being meticulous with where your money goes.\nYou'll likely have a lot of spending categories to plan for and keep track of, and a plan for what to do with any money that's left over (put it in your savings, for instance). If you overspend in one category, you'll need to stop spending in that area until the next month or take from another category.\nA zero-based budget is a good option for someone looking for a detailed approach to managing their money who wants to know exactly where all of their money goes so they can make better decisions. This approach can also be good for someone who prefers to use credit cards. You're less likely to overdraw your checking account when you've budgeted every dollar to the penny. END
 TITLE: 4 Types of Budget Plans to Know About CONTENT: 4\\. Pay-Yourself-First Budget\n-----------------------------\nWith this budgeting approach, the most important thing is to make sure that your savings and debt goals are met. When you get your paycheck, you'll set aside money for those goals. After that, you can use the remaining money for whatever you want.\nOf course, you'll need to account for recurring expenses like rent or mortgage payments, utilities and other bills. Once your priorities are handled, you'll know what you have left over for the fun stuff. The idea with this budgeting method is that you don't have to keep track of exactly where your money goes, just that you don't run out of it.\nThe pay-yourself-first budget is best suited for someone who doesn't want a complicated budgeting process. It's also best to avoid credit cards with this approach because they don't give you an accurate view of how much money you actually have to spend in your checking account. END
 TITLE: 4 Types of Budget Plans to Know About CONTENT: How to Stick to Your Budget\n---------------------------\nCreating a budget is an important first step, but it won't accomplish much if you don't stick to your budget. Here are some tips that can help you stay motivated and on track:\n*   **Choose a budgeting method that works for you.** Do your homework and take a second to think critically before settling on a budgeting method. Instead of simply going with the one you think can save you the most money, think about which method appeals to you the most. If a budgeting method sounds like pure drudgery to you, it's unlikely you'll stick to it. Choose one you expect to bring you some satisfaction.\n*   **Track spending.** Review your transactions at least once a week to keep track of whether you're spending within your budget. This can help you make adjustments throughout the month if need be to avoid overspending.\n*   **Use a budgeting app.** There are several apps that can help you keep track of your budget. Some of them even directly import your transactions from all of your financial accounts into one place, making it easier to keep track of your expenses. Having a budget process that's convenient will make you more likely to succeed.\n*   **Evaluate your budget regularly.** Every six months to a year, take a look at your budgeting approach and determine whether it's still working for you. If it's not, you may need to make some minor adjustments to better align your goals with reality. In some cases, it may even make sense to switch to an entirely different budgeting approach.\n*   **Keep your goals in sight.** It can take time to master a budget, and even then, it can be challenging to stay motivated. Keep a vision board or list of reasons why you're budgeting. It may be that you want to save money to start a business, take your family on vacation or retire at a certain age. Whatever it is, the information can help you stay motivated. END
 TITLE: 4 Types of Budget Plans to Know About CONTENT: How Budgeting Can Improve Your Finances\n---------------------------------------\nA budget is one of the simplest elements of a financial plan, but it also provides a solid foundation for financial success.\nThe greatest resource a budget provides is information. Understanding exactly where your money goes can help you change how you spend so that you're more likely to achieve your financial goals.\nFor example, if you want to start making extra debt payments or put more money in your emergency fund, all you have to do is look at your budget to determine which expenses to cut back on and how to reallocate that money toward your objective. END
 TITLE: 4 Types of Budget Plans to Know About CONTENT: Building Credit Can Help Your Budgeting\n---------------------------------------\nHaving a good credit score can do wonders for your budget because it can help you qualify for lower-cost credit. Whether it's a mortgage loan, auto loan, student loan or whatever else, getting low interest rates with good credit allows you to save money that you can put to good work elsewhere in your budget.\nTake some time to work on building your credit score. Monitor your credit regularly to understand which areas you can address, and keep track of your progress. As your credit improves, you may be able to refinance existing debts and qualify for new loans when you need them and save in the process. END
 TITLE: Understanding Balance Transfer Fees CONTENT: How Do Balance Transfer Fees Work?\n----------------------------------\nBalance transfer credit cards often have low percentage teaser interest rates, also called introductory rates, that credit card companies offer to entice new signups. These rates can be as low as 0%; however, after the introductory period ends, your APR will revert to a higher percentage. As a tradeoff for the low or 0% APR, you'll typically need to pay a balance transfer fee on any balances moved to the new card. Before you apply for a balance transfer card, it's a good idea to calculate exactly what the fee(s) will be and how long the low interest period will last.\nYou can find credit card transfer fees on the card issuer's website or in the \"rates and fees\" or \"terms and conditions\" documents when you're applying. (It will also be included in the documentation that's mailed to you with your new card.) Balance transfer fees can vary, but are usually either 3% or 5% of the transferred amount.\nOnce you're approved for a balance transfer card, you can transfer an outstanding balance to it from your existing credit card (or cards) or even use it to pay outstanding loans. The balance transfer card issuer either pays your credit card company or lender directly or issues a check you can use to pay off your balance. The fee for each balance transfer will be added to the balance on your new card.\nIn most cases, the savings from reduced interest will outweigh the balance transfer fee, as long as you pay off the transferred balance before the introductory rate expires. Before applying for a balance transfer card, create and commit to a plan to pay off your balance before your interest rates increase. END
 TITLE: Understanding Balance Transfer Fees CONTENT: How to Avoid Balance Transfer Fees\n----------------------------------\nThe only way to completely avoid balance transfer fees is to choose a credit card that waives the fee. Cards without a balance transfer fee may be hard to come by, but you may be able to find these promotions from time to time.\nIf you can't find a card without a balance transfer fee, the key factors to compare are the length of the 0% APR offer, the size of the balance transfer fee, and whether the card charges an annual fee. You should also consider the interest rate you'll pay once the introductory offer expires, as well as any other fees the card may charge, such as late fees, cash advance fees or fees on foreign transactions.\nOnce you know all the fees, do the math to assess how much a balance transfer card will cost you. For example, depending on the amount you plan to transfer, a card with a 5% balance transfer fee but no annual fee might actually cost less than a card with a 3% balance transfer fee and a $95 annual fee.\nTo qualify for most balance transfer cards, you'll need good to excellent credit scores. END
 TITLE: Understanding Balance Transfer Fees CONTENT: Find the Right Balance Transfer Card\n------------------------------------\nTo get a better idea of which balance transfer cards you may qualify for, review your credit report and check your credit score. Knowing your credit score will help you pinpoint the best balance transfer card for your situation. You can also use Experian CreditMatch™ to be paired with credit cards that could work well. If you have a good to excellent credit score, you may even be able to negotiate a lower fee with your credit card issuer. (It never hurts to ask!)\nA balance transfer card can be a useful tool for paying down high interest debt. By choosing the right balance transfer card and paying off your balance before the introductory APR expires, you can reduce the amount of interest you're paying, lower your monthly payments and get out of debt faster. END
 TITLE: How Long Does a Credit Card Balance Transfer Take? CONTENT: How Do Balance Transfers Work?\n------------------------------\nIf you're wondering how balance transfers work, you're probably looking to move some of your high interest debt to a card with a lower interest rate. This is a common debt consolidation strategy and could help you save a significant amount of money in interest.\nCredit card companies don't all approach balance transfers the same way. Some companies complete balance transfers electronically, while others issue balance transfer checks directly to you, the account holder, which you then mail to the cards you're paying off. Some credit card issuers may also allow you to transfer your debt from a student loan, a personal loan, an auto loan or a home equity line of credit.\nAmerican Express says that it typically takes anywhere from five to seven days for a transfer to be completed, but adds the process can take up to six weeks. Decisions about balance transfers are sent through the mail.\nDiscover says it typically processes balance transfers in seven days, or 14 days on new accounts. Discover also mentions that if the creditor needs to be paid by a check instead of electronically, the process can take even longer. The company recommends filling out a balance transfer application online to shorten the process.\nFor cards that operate on the Visa or Mastercard networks, the length of time for a balance transfer varies by the financial institution issuing the card. Capital One, for example, says that it usually takes three to 14 days for a transfer, but the time period depends on whether the transfer takes place electronically or by mail.\nFurthermore, most credit card issuers will impose a balance transfer fee, typically 3% to 5% of the amount transferred.\n> Find balance transfer credit cards in Experian CreditMatch™. END
 TITLE: How Long Does a Credit Card Balance Transfer Take? CONTENT: How Long Does the Process Take?\n-------------------------------\nMany credit companies will state how long the balance transfer process takes on their website. If the information is not available online, you can call your card issuer's customer service. END
 TITLE: How Long Does a Credit Card Balance Transfer Take? CONTENT: When Does It Make Sense to Transfer a Balance?\n----------------------------------------------\nWhen you are able to receive a lower APR on your debt by transferring your balance, it's worth considering. For example, when a new account offers introductory financing with a 0% APR or a lower than standard interest rate, then it can make sense to do so—as long as you plan to pay off the balance before the introductory period ends. It can also be beneficial to transfer your balance to a new credit card with a standard APR that's less than your current card's rate. And if your credit has improved since you opened your last card, you may be eligible for a lower interest rate on a new account.\nOn the other hand, a balance transfer may not always be the right move. For example, if you're on track to pay off your balance within a few months, it may not be worth spending the 3% to 5% balance transfer fee just to receive a lower interest rate for a short period of time. Before you begin the process of performing a balance transfer, you may want to request a lower interest rate from your current credit card issuer.\nIn addition, if you think you might rack up additional debt on the card you pay off with a balance transfer, then a balance transfer may not be right for you. If your goal is to reduce your debt and the amount of interest you're paying, put the old cards in a drawer and commit to not using them at least until the transferred amount has been fully paid off. END
 TITLE: How Long Does a Credit Card Balance Transfer Take? CONTENT: You must first identify a balance transfer credit card with a 0% APR introductory financing offer for balance transfers, or at least a card with a significantly lower APR than the card you're using.\nYou also have to be sure that you can qualify for the new card, based on your creditworthiness. Consumers who have good credit scores and pay their bills on time each month tend to qualify for cards with the best balance transfer offers.\nBalance transfers offered by credit card issuers are temporary and range anywhere from six to 18 months. During that period, the interest rates could range from 0% to 4% or higher, depending on the credit card company. The credit card issuer will set the credit limit, which is also the maximum amount that can be transferred. This includes the fee the company charges to process the transaction, which is often a percentage of the transfer amount, such as 3% to 5%. For instance, if the balance transfer fee is 3% and the credit limit is $3,000, the maximum amount you can transfer is $2,910.\nConsider all the features on new balance transfer cards you're considering, including the standard APR you'll pay once the intro balance transfer rate ends, fees you'll pay on the card (such as annual and foreign transaction fees) and card perks.\nKeep in mind that it will take time for the new credit card issuer to send a payment to the card you want to transfer a balance from (or for them to send you the payment, which you'll send to your other card issuers). The entire process can take a couple weeks or more, so stick to your original monthly budget and be sure to continue paying the bills on your cards until the payoff is complete.\n> Find balance transfer credit cards in Experian CreditMatch™. END
 TITLE: How Long Does a Credit Card Balance Transfer Take? CONTENT: Time Is Money\n-------------\nUnfortunately, it's impossible to predict exactly how long a balance transfer will take, but your card issuer should give you a good idea of how long the process usually is. By understanding how these transfers work, you can use your balance transfer to save money on interest charges while you pay off your balance even sooner than you might have thought. END
 TITLE: What Happens to Your Old Credit Card After a Balance Transfer? CONTENT: A Balance Transfer Does Not Cancel Your Old Credit Card\n-------------------------------------------------------\nWhen your balance transfer is complete, your old card isn't automatically closed, and you're not required to cancel it either.\nDepending on the new card's credit limit, you may not be able to transfer the entire balance. In that case, the old card will have a remaining balance you must continue to pay off. If the credit limit is high enough to allow a full transfer, you can decide whether to keep the old account open.\nIf you're afraid of the temptation to run up more debt, it could be worth closing the account. But keeping the account open could help bolster your credit. That's because having more available credit can help reduce your credit utilization ratio, which reflects the percentage of available credit you're using. Credit utilization is one of the most important factors in your credit score, making up 30% of your FICO® Score☉ calculation. Using any more than 30% of your available credit can damage your credit scores, and the lower your utilization, the better.\nIf you can keep your old account open with a low or zero balance, it will lower your credit utilization ratio and may boost your credit. Closing the account can have the opposite effect because it will reduce your overall credit limit. The average age of accounts also plays a role in your credit score, so closing an old account in good standing could eventually drag down your credit score. END
 TITLE: What Happens to Your Old Credit Card After a Balance Transfer? CONTENT: When Does It Make Sense to Transfer a Balance?\n----------------------------------------------\nTransferring a balance can be hugely beneficial for some consumers, but it isn't for everyone. Here are a few ways it can be a positive:\n*   **Saving money on interest**: Say you're currently paying 20% interest on your existing credit card debt. If you transfer that balance to a card with an intro 0% APR of 18 months, even with a balance transfer fee, you'll score massive savings by avoiding interest for an extended time. This can also help you pay down debt much faster.\n*   **Simplified bills**: If the credit limit on your new balance transfer card is large enough, you can transfer balances from multiple cards onto it. This allows you to consolidate multiple debts with various minimum payments and due dates into one streamlined monthly bill. This can make it easier to pay bills on time—which helps you avoid late payment fees and keep credit scores healthy.\n*   **More favorable terms**: It's possible that you can find a balance transfer card with preferable terms and conditions to your previous card, offering benefits beyond the intro period. For example, maybe it has no annual fee, no late fees, cash back or travel rewards, or other perks you didn't have before.\nOn the flip side, balance transfers have some potential downsides:\n*   **Balance transfer fees**: Depending on your current interest rate, a balance transfer fee can easily be outweighed by your future savings on interest payments. However, these fees are often 3% to 5% of your transferred balance, which is added on top of the balance on your new card. Again, it can be offset by the savings, but it's worth doing the math to make sure.\n*   **A higher APR later**: When a balance transfer card's introductory period ends, the APR jumps from 0% to its standard APR. It could be lower than your existing card, continuing to save you money, but it's also possible it will be higher. Check the new card's terms closely so you know what the regular APR will be. If you still want the card, but the regular APR is steep, focus on paying off the balance during the 0% APR period.\n*   **Limits on transfers**: When you're approved for a balance transfer credit card, the credit limit you receive indicates the maximum amount you can transfer. If the limit the issuer grants you is lower than the balance you intended to transfer, you won't be able to transfer the entire balance and will have to keep some of it on your old card. END
 TITLE: What Happens to Your Old Credit Card After a Balance Transfer? CONTENT: To initiate balance transfer, you'll need to get approved for a balance transfer credit card. You will typically need good to excellent credit to qualify, though criteria varies by issuer.\nIt's wise to compare options across multiple issuers in order to choose the right card to transfer balances since terms and fees can differ. As you shop around, compare these features:\n*   **The issuer**: Credit card companies generally don't allow you to transfer balances from one of their cards to another. This means you'll likely need to find a credit card with a different issuer than the one with the existing balance.\n*   **The introductory period**: When viewing balance transfer offers, pay attention to how long the introductory 0% APR period lasts. While 12 to 18 months is most common, you may find offers anywhere from six months to 20 months.\n*   **Balance transfer fee**: This is a fee issuers charge for the luxury of transferring a balance, and it's usually 3% or 5% of the transferred amount (though it may also be a flat fee, whichever is more).\n*   **The credit limit**: Try to find out the card's potential credit limit, since this can rule out cards that won't offer high enough limits to transfer your entire balance.\nShopping around can help you score the best deal on fees, terms and interest rates on credit cards. Experian's free CreditMatch™ tool allows you to compare balance transfer card offers that are personalized to your credit score.\nOnce you apply, you'll find out if you're approved and what your credit limit will be. If the issuer hasn't provided instructions for how to make the transfer, contact them and follow their process. The issuer may either pay off your old balance directly, or issue you a check to do it yourself. The transfer typically needs to be done within 60 days.\nWhat to Do After You Make a Balance Transfer\n--------------------------------------------\nOnce you've committed to transferring your balance, don't close the old account just yet. Keep making the minimum payment on the old account until both your old account and new account show that the transfer is complete. This ensures you don't accidentally miss any payments and hurt your credit score or incur any fees. You can monitor your credit score for free through Experian to see how the process affects your credit and to keep up on the information on your credit report going forward.\nAfter the balance transfer is complete, and assuming you were able to pay off the entire balance on the old card, you'll need to decide what to do with it. If you decide to keep the card open, consider putting a small recurring payment on the account, such as a membership or streaming service, to keep it active—and then put the card away in a drawer to avoid running up a new balance and defeating the purpose of the balance transfer.\nNo matter which balance transfer card you end up with, make sure you pay off the transferred debt during the introductory period. This will ensure faster progress on debt repayment and help make the effort and fees of a balance transfer worth your while. END
 TITLE: What Happens to Your Old Credit Card After a Balance Transfer? CONTENT: What to Do After You Make a Balance Transfer\n--------------------------------------------\nOnce you've committed to transferring your balance, don't close the old account just yet. Keep making the minimum payment on the old account until both your old account and new account show that the transfer is complete. This ensures you don't accidentally miss any payments and hurt your credit score or incur any fees. You can monitor your credit score for free through Experian to see how the process affects your credit and to keep up on the information on your credit report going forward.\nAfter the balance transfer is complete, and assuming you were able to pay off the entire balance on the old card, you'll need to decide what to do with it. If you decide to keep the card open, consider putting a small recurring payment on the account, such as a membership or streaming service, to keep it active—and then put the card away in a drawer to avoid running up a new balance and defeating the purpose of the balance transfer.\nNo matter which balance transfer card you end up with, make sure you pay off the transferred debt during the introductory period. This will ensure faster progress on debt repayment and help make the effort and fees of a balance transfer worth your while. END
 TITLE: What to Do When Unemployment Benefits End CONTENT: When Do Expanded Unemployment Benefits Expire?\n----------------------------------------------\nIf you're currently relying on expanded unemployment benefits, it's important to keep the following information in mind as you plan your budget for the coming months. The American Rescue Plan Act of 2021 (ARPA), signed into law March 2021, is the latest relief effort and the following details and timelines are based on this new legislation. These dates could change if legislators and the president agree to extend them further, so continue to check back for updates. END
 TITLE: What to Do When Unemployment Benefits End CONTENT: Can I Still Receive Regular Unemployment Benefits?\n--------------------------------------------------\nOutside of the dates listed above, unemployment benefits offered by states will remain unchanged. This means if you are still eligible for unemployment benefits after any of the specific CARES Act provisions expire, you should still be able to collect benefits from your state.\nIf your normal state benefits run out, you should be able to access additional weekly benefits through the PEUC program until it expires. END
 TITLE: What to Do When Unemployment Benefits End CONTENT: What Should I Do as Additional Unemployment Benefits Expire?\n------------------------------------------------------------\nIf you're currently relying on unemployment benefits as your main source of income, the abrupt loss of the additional $300 per week could leave you scrambling to make ends meet. And if your employment situation hasn't returned to normal by later this year, the loss of the additional benefits could also have an impact.\nPreparing for these changes now could put you in a better position to weather the storm as these programs expire. The following tips could help in the case you're impacted by the reduction of benefits:\n*   **Cut back spending as much as possible now.** If you can, try to save as much as possible while you have the income. Though expenses may be tight, making small cutbacks can allow you to put a little extra into savings each month. If you envision still being out of work by the time these benefits expire, the savings you've built up could make a difference.\n*   **Add to your emergency fund.** As part of your overall savings plan, make sure you are building, or have already built, an emergency fund. This type of account will ideally hold three to six months' worth of your expenses and should be used to cover emergencies or your bills should you lose income. While it may be tricky right now, try to use whatever available income you may have to fund this emergency account.\n*   **Revisit your debt payments and budget.** If you fear your unemployment might be reduced, revisit your budget to see if you have any areas you may be able to easily cut back. Take inventory of your debt payments and, if possible, prioritize these so you don't fall behind on payments and damage your credit. If you don't think you'll be able to pay your debt payments on your reduced income, contact your creditors immediately to see if they have any relief options available.\n*   **Try to get a new job.** Though the nation is dealing with unprecedented unemployment across many industries, the most effective solution to counter lost income is to find a new job. Depending on your field and how it's being impacted by the ongoing pandemic, consider creating a plan for re-entering the workforce. If there's little opportunity in your field of work, think about other short-term jobs that could help you generate income.  \n    Consider gig jobs like delivering food or groceries, and look into what industries are hiring during the pandemic (logistics\/shipping, mail carriers, cleaners, grocery stores). While taking a job outside of your field may feel like a professional deviation, set a plan to return to your industry when jobs begin to appear again.\n*   **Monitor your credit for changes.** As always, it's good to monitor your credit for any changes that occur in your reports. Monitoring your credit can alert you to fraud and can help you catch overspending. During this uncertain time, staying on top of your credit can give you an extra peace of mind if your finances change due to the pandemic. You can get free credit monitoring from Experian to keep up with any and all changes that occur in your credit reports. END
 TITLE: What to Do When Unemployment Benefits End CONTENT: Keep Up With the News on Benefit Changes\n----------------------------------------\nCongress has and may continue to announce extensions and changes to these programs so its important to continue monitoring changes and stay in contact with your local unemployment office to monitor your eligibility.\nIf you're unsure when your benefits end, check with your state's unemployment office for more information. You can find the contact information for your state's department of labor here. END
 TITLE: How Unemployment Benefits Are Changing in 2021 CONTENT: Extended Federal Unemployment Benefits in 2021\n----------------------------------------------\nThe American Rescue Plan Act of 2021 (ARPA) was signed into law in March and extends many of the unemployment benefits that were part of previous pandemic-relief bills until September 6, 2021. Here's what you can expect:\n*   **$300 in weekly benefits** in addition to your state unemployment benefits under Federal Pandemic Unemployment Compensation (FPUC).\n*   **$100 in weekly benefits** for people who had a mix of income from employment (reported on a W-2) and at least $5,000 in self-employment income (often reported on Form 1099) in the year before filing for unemployment, as part of Mixed Earner Unemployment Compensation (MEUC).\n*   **Continued coverage for expanded pool of eligible workers** as part of Pandemic Unemployment Assistance (PUA). PUA will continue to allow people who otherwise wouldn't qualify for unemployment to collect benefits, including gig workers, contractors, business owners and people with limited work histories.\n*   **Continued benefits for people who have used up their normal state benefits,** as part of the Pandemic Emergency Unemployment Compensation (PEUC) program.\nAdditionally, if you receive the $300 weekly FPUC benefit, the money won't count toward your income when determining your eligibility for Medicaid or the Children's Health Insurance Program.  \n### A Retroactive Change to 2020 Unemployment Benefits\nThe law also made a change that could impact you if you collected unemployment in 2020. Generally, you need to pay federal income taxes on unemployment benefits—some states tax unemployment benefits as well.\nHowever, for 2020, the first $10,200 in unemployment benefits won't be taxed by the federal government if your adjusted gross income (AGI) was under $150,000. The exemption expands to $20,400 for couples who file jointly if both spouses collected unemployment, although the $150,000 AGI limit stays the same.\nIf you already filed your 2020 tax return and paid taxes on unemployment income, do not file an amended return yet. In a recent statement, the IRS recommended not taking any action until the agency provides further guidance.\nYou Might Need to Reapply for Unemployment\n------------------------------------------\nThe extension of the federal pandemic programs may be automatic for many people who are receiving unemployment benefits. However, you may need to reapply if it's been a year since you first started receiving unemployment. Check with your state, as the requirement can vary depending on where you live and the types of benefits you receive.  \nYou May Qualify for Discounted or Free Health Coverage\n------------------------------------------------------\nIf you're unemployed, you may be able to get health coverage from Medicaid, an Affordable Care Act (ACA) Marketplace or a health care provider. Another option may be to continue the coverage you had at work through Consolidated Omnibus Budget Reconciliation Act (COBRA).\nThe ARPA makes several significant changes to health insurance costs:\n*   **May expand Medicaid** through new state incentives depending on where you live.\n*   **Increases the premium tax credit (PTC).** The PTC, a refundable tax credit for eligible families using an ACA Marketplace plan, will be increased and expanded through 2022, which could lower your monthly premium. Kaiser Family Foundation has an updated calculator you can use to estimate your subsidy.\n*   **Offers the PTC to unemployed individuals.** If you're eligible for unemployment during 2021, you can now receive the PTC as if your income is 133% of the federal poverty line—the highest subsidy available. The change is particularly important for people living in states that didn't expand Medicaid, creating a coverage gap where residents couldn't qualify for the PTC or Medicaid.\n*   **Subsidizes COBRA premiums.** If you involuntarily left your job, the federal government may pay the entire cost for your continued COBRA coverage from April 1 to September 30, 2021. The benefit can apply if you're currently enrolled in COBRA; you also have a chance to enroll now, even if you previously declined coverage. The subsidy ends before September 30 if you get another job with employer-provided health care or use up your 18 months of COBRA coverage.\nLearn more about getting help paying for medical bills.  \nHow to File for Unemployment in 2021\n------------------------------------\nAs was previously the case, you'll continue to file for unemployment through the state where you worked. The filing process hasn't changed for many people, although some states are implementing minor changes to help prevent fraud or increase efficiency.\nGenerally, you can't collect unemployment unless you're out of work for no fault of your own (in other words, you didn't quit), and you earned enough wages during a \"base period\" before filing. States may have additional requirements as well. However, the pandemic has led to several changes, so you'll want to check with your state's unemployment agency to see if you can qualify.\nFor example, you may be eligible for PUA benefits even if you usually wouldn't have enough work history to qualify for unemployment in your state. Or, you may qualify for unemployment if you had to quit your job or stay home to care for your child because of the pandemic.\nYou can use the unemployment benefits finder tool to find links to general information, details on how to apply and relevant coronavirus updates for your state.  \nWill Collecting Unemployment Hurt Your Credit?\n----------------------------------------------\nWhile you might be more likely to fall behind on bills if you're out of work, which could hurt your credit, collecting unemployment doesn't directly impact your credit.\nYou may also see current or past employers listed on your credit report if you listed them on previous credit applications. Even when that's the case, though, your income and current employment status aren't on your credit reports and don't impact your credit scores.\nCredit scores aside, it could be more difficult to qualify for a loan or credit card if you don't have a job. However, it may be possible, especially if you have good credit and another source of income.\nYou can also sign up for free credit monitoring from Experian to keep an eye on your credit. And learn about more ways to protect your credit during the pandemic. END
 TITLE: How Unemployment Benefits Are Changing in 2021 CONTENT: You Might Need to Reapply for Unemployment\n------------------------------------------\nThe extension of the federal pandemic programs may be automatic for many people who are receiving unemployment benefits. However, you may need to reapply if it's been a year since you first started receiving unemployment. Check with your state, as the requirement can vary depending on where you live and the types of benefits you receive. END
 TITLE: How Unemployment Benefits Are Changing in 2021 CONTENT: You May Qualify for Discounted or Free Health Coverage\n------------------------------------------------------\nIf you're unemployed, you may be able to get health coverage from Medicaid, an Affordable Care Act (ACA) Marketplace or a health care provider. Another option may be to continue the coverage you had at work through Consolidated Omnibus Budget Reconciliation Act (COBRA).\nThe ARPA makes several significant changes to health insurance costs:\n*   **May expand Medicaid** through new state incentives depending on where you live.\n*   **Increases the premium tax credit (PTC).** The PTC, a refundable tax credit for eligible families using an ACA Marketplace plan, will be increased and expanded through 2022, which could lower your monthly premium. Kaiser Family Foundation has an updated calculator you can use to estimate your subsidy.\n*   **Offers the PTC to unemployed individuals.** If you're eligible for unemployment during 2021, you can now receive the PTC as if your income is 133% of the federal poverty line—the highest subsidy available. The change is particularly important for people living in states that didn't expand Medicaid, creating a coverage gap where residents couldn't qualify for the PTC or Medicaid.\n*   **Subsidizes COBRA premiums.** If you involuntarily left your job, the federal government may pay the entire cost for your continued COBRA coverage from April 1 to September 30, 2021. The benefit can apply if you're currently enrolled in COBRA; you also have a chance to enroll now, even if you previously declined coverage. The subsidy ends before September 30 if you get another job with employer-provided health care or use up your 18 months of COBRA coverage.\nLearn more about getting help paying for medical bills.  \nHow to File for Unemployment in 2021\n------------------------------------\nAs was previously the case, you'll continue to file for unemployment through the state where you worked. The filing process hasn't changed for many people, although some states are implementing minor changes to help prevent fraud or increase efficiency.\nGenerally, you can't collect unemployment unless you're out of work for no fault of your own (in other words, you didn't quit), and you earned enough wages during a \"base period\" before filing. States may have additional requirements as well. However, the pandemic has led to several changes, so you'll want to check with your state's unemployment agency to see if you can qualify.\nFor example, you may be eligible for PUA benefits even if you usually wouldn't have enough work history to qualify for unemployment in your state. Or, you may qualify for unemployment if you had to quit your job or stay home to care for your child because of the pandemic.\nYou can use the unemployment benefits finder tool to find links to general information, details on how to apply and relevant coronavirus updates for your state.  \nWill Collecting Unemployment Hurt Your Credit?\n----------------------------------------------\nWhile you might be more likely to fall behind on bills if you're out of work, which could hurt your credit, collecting unemployment doesn't directly impact your credit.\nYou may also see current or past employers listed on your credit report if you listed them on previous credit applications. Even when that's the case, though, your income and current employment status aren't on your credit reports and don't impact your credit scores.\nCredit scores aside, it could be more difficult to qualify for a loan or credit card if you don't have a job. However, it may be possible, especially if you have good credit and another source of income.\nYou can also sign up for free credit monitoring from Experian to keep an eye on your credit. And learn about more ways to protect your credit during the pandemic. END
 TITLE: How Unemployment Benefits Are Changing in 2021 CONTENT: How to File for Unemployment in 2021\n------------------------------------\nAs was previously the case, you'll continue to file for unemployment through the state where you worked. The filing process hasn't changed for many people, although some states are implementing minor changes to help prevent fraud or increase efficiency.\nGenerally, you can't collect unemployment unless you're out of work for no fault of your own (in other words, you didn't quit), and you earned enough wages during a \"base period\" before filing. States may have additional requirements as well. However, the pandemic has led to several changes, so you'll want to check with your state's unemployment agency to see if you can qualify.\nFor example, you may be eligible for PUA benefits even if you usually wouldn't have enough work history to qualify for unemployment in your state. Or, you may qualify for unemployment if you had to quit your job or stay home to care for your child because of the pandemic.\nYou can use the unemployment benefits finder tool to find links to general information, details on how to apply and relevant coronavirus updates for your state. END
 TITLE: How Unemployment Benefits Are Changing in 2021 CONTENT: Will Collecting Unemployment Hurt Your Credit?\n----------------------------------------------\nWhile you might be more likely to fall behind on bills if you're out of work, which could hurt your credit, collecting unemployment doesn't directly impact your credit.\nYou may also see current or past employers listed on your credit report if you listed them on previous credit applications. Even when that's the case, though, your income and current employment status aren't on your credit reports and don't impact your credit scores.\nCredit scores aside, it could be more difficult to qualify for a loan or credit card if you don't have a job. However, it may be possible, especially if you have good credit and another source of income.\nYou can also sign up for free credit monitoring from Experian to keep an eye on your credit. And learn about more ways to protect your credit during the pandemic. END
 TITLE: Can You Get an Emergency Loan While on Unemployment? CONTENT: What Do You Need to Qualify for an Emergency Loan?\n--------------------------------------------------\nThere's no formal definition of an emergency loan, as the name refers to how you plan on using the money (for an emergency) rather than the type of loan. As such, the lender's requirements may be the same whether you're looking for a loan during an emergency or not.\nLenders consider a wide range of criteria to decide your loan terms, but you'll need to meet certain minimum requirements to be eligible for loan approval at all. These requirements often include living in a state where the lender operates, being at least 18 years old and having a Social Security number. Additionally, lenders generally consider your credit and ability to repay the loan by looking at:\n*   Your credit report\n*   Your credit scores\n*   Your monthly income, debt payments and resulting debt-to-income ratio\nRequirements can vary depending on the lender and type of loan. For instance, if you're taking out a secured loan, such as an auto title loan or home equity loan, your collateral's value will also be important. And some lenders focus on borrowers who have excellent credit, while others work with borrowers who have poor credit. But if you don't meet one or more of these minimum requirements, your loan application can be denied even if you have excellent credit. END
 TITLE: Can You Get an Emergency Loan While on Unemployment? CONTENT: What Counts as Income When You Apply for a Loan?\n------------------------------------------------\nIn reviewing your ability to repay the loan and your debt-to-income ratio, lenders may look for various types of income and ask for verification documents, such as recent tax returns and bank statements.\nIf you've been collecting unemployment, you likely don't have a lot (or any) employment income, such as salaries, wages and commissions. And if you expect your unemployment benefits to end or shrink soon—or they already have—the income piece of the equation may be the hardest to shore up.\nHowever, even when you're not working, you may have other sources of income that satisfy the requirement:\n*   Income from a retirement, pension or trust\n*   Disability and Social Security benefits\n*   Investments and rental property income\n*   Self-employment income\n*   Child support, alimony or separate maintenance (but lenders can't require you to disclose these sources of income)\nLenders vary on what types of non-employment income they consider. Some may only count unemployment as income if you're a seasonal worker who regularly collects unemployment for several months each year. Others might always—or never—count unemployment benefits as income. END
 TITLE: Can You Get an Emergency Loan While on Unemployment? CONTENT: An unsecured personal loan can be a good option during an emergency, as online lenders often have easy applications and fast funding. You may even be able to prequalify for a loan in a few minutes without impacting your credit.\nHere are a few steps you can take to prepare:\n*   **Check your credit.** Your credit can be especially important when you have limited income. Get your free credit report and FICO® Score☉ from Experian to see where you stand and how you may be able to improve your credit before applying. Higher credit scores can qualify you for lower interest rates and save you money on your loan repayment costs.\n*   **Review lenders' income requirements.** Look online or call lenders to see which types of income they'll consider and if they have a minimum annual income requirement.\n*   **Get prequalified.** If the lender offers it, try to get prequalified for a loan with a soft credit pull—which won't hurt your credit. You can also use Experian CreditMatch™ to see offers from several lenders in one place.\n*   **Consider a cosigner or joint application.** If you can't qualify for a loan on your own, you may be able to have a friend, family member or spouse who has a steady income and good credit serve as a cosigner (co-borrower) or joint applicant. Upgrade and Prosper both offer this option. But be cautious, as a cosigner will also be responsible for the loan, and missing payments can hurt their credit as well as yours.\nIf you're having trouble qualifying, you could be tempted by loans that are easier to qualify for, such as a no-credit-check loan, pawn loan or auto title loan. OneMain Financial offers both unsecured loans and auto title loans, and you may be able to prequalify without impacting your credit.\nHowever, as with payday loans, these types of financing tend to have high fees and interest rates that make them difficult to repay. In general, they're best left as a last resort once you consider all your other options. END
 TITLE: Can You Get an Emergency Loan While on Unemployment? CONTENT: What Else Can You Do When Unemployment Ends?\n--------------------------------------------\nAs unemployment benefits shrink or end, there are many things you can do to continue covering your expenses. An emergency loan might be an option, but there are other measures you can take if borrowing money isn't a good idea or you can't get approved.\n*   **Contact creditors.** If you're worried about missing bill payments, contact your creditors and ask about your options as soon as possible. Even if they're not legally required to offer you hardship relief, creditors may work with you to make your payments more manageable.\n*   **Learn about government protections.** Local, state and federal laws may give you options and protections from creditors. For example, if you have government-backed student or home loans, you may be able to temporarily pause your payments.\n*   **Look for help with housing.** If you're worried about paying rent or your mortgage, research foreclosure, eviction or utility shutoff moratoriums that apply where you live. The National Low Income Housing Coalition has a database of payment assistance programs.\n*   **Research assistance programs.** In addition to housing assistance, you may be able to find help with food, utilities, medical bills and other necessities from local, state and national charities.\n*   **Ask for professional advice.** The nonprofit National Foundation for Credit Counseling can help connect you to free and low-cost advice from a certified credit counselor. Counselors may be able to assist with different types of financial problems, including housing, budgeting and managing credit card debt.\n*   **Find a new source of income.** Even if it's only part-time or gig work, having a little extra income can help cover essentials. It may also open up new options for emergency loans.\n*   **Know which payments you can miss.** While you want to pay every bill on time, sometimes you need to pick and choose. Prioritize the household's necessities—food, shelter, utilities, transportation and the like. Unsecured loan payments, such as credit cards or student loans, might go low on the list. But know that missing payments could hurt your credit and lead to collections later. END
 TITLE: Can You Get an Emergency Loan While on Unemployment? CONTENT: Stay on Top of the Latest News\n------------------------------\nStay current with the news as you try to find work and negotiate with your creditors. While the COVID-19 crisis continues, states and the federal government may find ways to extend or expand unemployment benefits. You may also want to subscribe to emails from your local and state representatives to learn about changes and programs that might not make the national news.\nTo help you learn more about what options are out there, Experian put together a list of organizations that have made changes due to the ongoing pandemic. Explore what's out there to see what relief may be available to you. END
 TITLE: Is Unemployment a Public Record? CONTENT: Who Can Find Out if I'm Collecting Unemployment?\n------------------------------------------------\nGenerally, members of the public cannot access any records related to your unemployment benefits. Individuals like your friends and family, as well as prospective employers and organizations, are not privy to records indicating you receive or have received unemployment benefits unless you show them.\nThe major exception to this is your previous employers, who will be notified when you apply for unemployment benefits. This is because in order to process your unemployment insurance application, your state must verify a few things with your previous employer including your wages, dates of employment and circumstances around you losing your job.\nIn addition to your past employers, there are a few other—albeit fairly rare—instances that someone could see a record of your unemployment benefits. According the U.S. Department of Labor, state unemployment agencies are only allowed to share unemployment records in the following circumstances:\n1.  Disclosure to public officials: In the case that a public official (federal, state or local) needs to access your unemployment benefits history to administer or enforce a law, state unemployment agencies may have to make the records available. Additionally, unemployment records must be made available to certain government agencies that handle child support enforcement and food stamps.\n2.  Subpoenas: In certain instances, unemployment agencies may receive an official subpoena for your unemployment records and must disclose your information.\n3.  Disclosure to private entities with your consent: If you provide consent as part of a written agreement, unemployment agencies may disclose your unemployment information to a private entity. Any entity that receives your unemployment information is not allowed to share it with anyone else and must pay for the costs associated with the disclosure. END
 TITLE: Is Unemployment a Public Record? CONTENT: Will Unemployment Show Up on My Credit Report?\n----------------------------------------------\nA record of receiving unemployment benefits will not appear in your credit reports. Though you may see a list of past employers, your credit report is mainly filled with information from financial institutions, like banks, credit unions and debt collection agencies. Bankruptcy filings are the only public record included in your credit report, and only because it may be relevant to a lender. Income, marital status and bank balances are not included in your reports at all.\nIf you've combed through your credit reports and seen past and current employers listed, it's because you included that information on a past application for credit. Lenders often use your income and employer to determine whether to grant you a loan or credit, and when they send your application details to credit reporting agencies, your employment information is sometimes included.\nIt's important to know that the \"employers\" entry on your credit reports does not represent your complete employment history and will only include occasional instances where employment information was received. This information is not factored into any credit scoring models and will not have an impact on your credit scores. END
 TITLE: Is Unemployment a Public Record? CONTENT: Can Employers Still Find Out I Was Unemployed?\n----------------------------------------------\nWhile prospective employers are not able to find out if you've received unemployment benefits, they may still use other methods to find lapses in your employment history and may question you on why you were out of work. Many employers run employment background checks to make sure your employment history lines up with what's on your résumé. If you're worried an employer may find out you were out of work, it's good to prepare a response that explains why you weren't working during that time. END
 TITLE: Is Unemployment a Public Record? CONTENT: How to Boost Your Credit While Unemployed\n-----------------------------------------\nIf you're currently unemployed and worry you may fall behind on bill payments, contact your creditors immediately to see what relief options may be available. In the case that your credit score dips due to late or missed payments, you may be able to raise it instantly using Experian Boost™† , a tool that allows you to increase your FICO® Score☉ in minutes by giving you credit for past on-time payments for utility and telecom bills. END
 TITLE: Do You Have to Pay Taxes on Unemployment Benefits? CONTENT: Which Taxes Apply to Unemployment Benefits?\n-------------------------------------------\nGenerally, you'll have money withheld from your paycheck for several types of taxes: income, Social Security and Medicare.\nCombined, the Social Security and Medicare taxes are called Federal Insurance Contributions Act (FICA) taxes, and they can be up to 7.65% of your pay. But FICA taxes don't apply to unemployment benefits.\nYou have to pay federal income taxes on your unemployment benefits, as well as any applicable local and state income taxes.\nSimilar to how you receive a W-2 or 1099-MISC tax form with your wages and income and use those to prepare your tax return, your state will send you the IRS copies of Form 1099-G with a record of how much you received in unemployment. You'll include this amount in your income for the year when you file your taxes.\nThrough July 31, 2020, your taxable unemployment benefits may include an additional $600 a week as part of Coronavirus Aid, Relief and Economic Security (CARES) Act stimulus. The extra benefit also counts as taxable income. The separate one-time stimulus check that was also a component of the CARES Act is not, however, subject to income taxes. END
 TITLE: Do You Have to Pay Taxes on Unemployment Benefits? CONTENT: Which States Don't Tax Unemployment Benefits?\n---------------------------------------------\nWhether you have to pay state income taxes on your unemployment benefits depends on where you live. Some states don't have income taxes or treat unemployment benefits differently from other types of income.\n*   **Seven states don't have any income taxes**: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming.\n*   **Two states only have income taxes for investment income**: New Hampshire and Tennessee.\n*   **Six states exempt unemployment benefits from income taxes**: Alabama, California, Montana, New Jersey, Pennsylvania and Virginia.\n*   **Two states may only tax a portion of your unemployment benefits**: Indiana and Wisconsin.\nIn other states, your unemployment benefits may be treated as regular income and taxed at the same income tax rates. Some cities and counties may also have a local income tax that applies to unemployment benefits. END
 TITLE: Do You Have to Pay Taxes on Unemployment Benefits? CONTENT: How Much Are Unemployment Benefits Taxed?\n-----------------------------------------\nAt the federal level, unemployment benefits are treated the same as other types of ordinary income. The federal income tax brackets, which range from 10% to 37%, will determine how much you pay.\nWhich bracket you fall into depends on your total income minus deductions and credits, with the rate you'll pay being determined on a per-dollar basis—you won't pay the same rate for every dollar you made during the year.\nIt works something like this: If you file as single in 2020, you can automatically receive a $12,400 standard deduction, which reduces your taxable income. As a result, you won't have to pay any federal income taxes on the first $12,400 you make—you might not even have to file a federal tax return. The next $9,875 you make falls into the 10% tax bracket, with the 12% bracket after that covering income from $9,876 to $40,125, and so on (there are five brackets after the 12% bracket).\nAs the amount you earn climbs, new earnings are pushed into new brackets, but the rate that applies on lower-dollar earnings stays the same. Even if you make $1 million in a year, you still receive the standard deduction, pay 10% on the first $9,875, 12% on the next portion, on up to the top tax rate of 37% for income above $518,400.\nAs a result, your unemployment benefits may be taxed federally anywhere from 0% to 37%. END
 TITLE: Do You Have to Pay Taxes on Unemployment Benefits? CONTENT: How to Prepare for Income Taxes\n-------------------------------\nKnowing that you may have to pay income taxes on your unemployment benefits, you can choose from several options to help make the payments more manageable.\n*   **Request tax withholdings.** When you were working, your company may have withheld money for taxes and made those payments on your behalf. You can also ask your state to do the same with your weekly unemployment benefits. It will withhold 10% of your unemployment pay, which it will send to the IRS. You may also request state or local tax withholdings if they apply to you.\n*   **Pay estimated taxes.** Another option is to make estimated tax payments to the IRS and your state tax agency every quarter. Depending on how much unemployment you collect, and what other sources of income you have throughout the year, you may want to do this even if you have money withheld from your benefits. If you wind up owing more than $1,000 in income taxes, you may have to pay an additional underpayment penalty.\n*   **Set money aside.** You could choose to keep all your unemployment benefits if you don't expect to owe any taxes. Or, even if you expect to owe a little, you could still keep the money and set a portion aside in a savings account in case there's an emergency in the interim. An income tax calculator could help you estimate how much you'll want to set aside.\nIf you pay too much in taxes now, you'll get the overpayment back when you file your tax return later. Even if you aren't required to file a return next year, you should file one if you had any money withheld from paychecks or unemployment benefits so you can get that money refunded. END
 TITLE: Do You Have to Pay Taxes on Unemployment Benefits? CONTENT: Protecting Your Credit When You're Unemployed\n---------------------------------------------\nWhile unemployment benefits can help you cover basic necessities, they won't necessarily be enough to cover all your bills. While being unemployed doesn't impact your credit directly, it can indirectly hurt your credit if you fall behind on bills.\nMany creditors recognize that you could be unemployed because of circumstances outside your control, and may work with you to temporarily waive or lower your payments. These hardship options can make it easier to manage your bills, and working with the company rather than skipping a payment without an explanation can help protect your credit. END
 TITLE: Can You Pay Rent With a Credit Card? CONTENT: Many individual landlords and property managers will only allow tenants to cover their rent with either cash or check payments. They often refuse to accept credit cards due to the fees involved or the hassle of collecting and processing credit card payments—or they may simply prefer the reliability of cold hard cash. If your landlord is a large property management company, they might offer the option to pay by card.\nLandlords who do accept direct credit card payments have to pay merchant processing fees for the privilege, and it's common for them to pass those fees on to the renters on top of rent. The convenience fee for paying rent with a card typically ranges from 2.5% to 2.9%, which may sound small, but it adds up. Say you pay $1,400 a month for rent and the processing fee is 2.5%; that means an extra $35 is tacked onto the payment. Over a year, that adds up to $420—about 30% of a single month's rent payment. Using a credit card that earns rewards could help you recoup some of this cost, but it's not likely you'll be able to wipe it out entirely.\nIf your landlord doesn't accept credit cards, you might be able to pay with one through a third-party online service that then pays your landlord. These services could help you build credit by reporting your payments, and if you set up autopay, you can avoid late payments—but they'll charge a fee. For example, the third-party service Plastiq charges a 2.85% fee on every rent payment. END
 TITLE: Can You Pay Rent With a Credit Card? CONTENT: Pros and Cons of Paying Rent With a Credit Card\n-----------------------------------------------\nPaying rent with plastic has several potential benefits:\n*   **Earn rewards.** One compelling reason to pay rent with a credit card is to earn travel, cash back or other credit card rewards. Base cash back rewards usually range from 1% to 2%, so if you pay $1,400 in rent on your card, you could earn $14 to $28 in cash back each month. Depending on the processing fees, however, rewards alone probably won't be enough to justify paying with your card.\n*   **Take advantage of an intro bonus.** Some renters might want to put rent on a credit card to take advantage of a card's intro bonus, which could be hard to earn otherwise. Let's say you're approved for a card that gives you a $500 bonus if you spend $5,000 within the first three months you have it. You could go a long way toward scoring that bonus if you put $1,400 a month in rent payments on that card over the three-month bonus period (a total of $4,200). Proceed with caution, however. Don't charge huge rent payments to your credit card without a plan to pay down the balance immediately so it doesn't linger as debt. Payments that large also risk spiking your credit utilization, which is a big factor in your credit scores.\n*   **Cover expenses.** If you're strapped for cash, paying rent with a credit card can help you get through a tight spot and preserve cash for other expenses. However, borrowing to cover rent should be viewed as a last resort option for emergencies, as it could turn into a bad habit, especially if you let your balance roll over to the next billing period and accrue costly interest. If you've already done everything you can to reduce expenses and increase your income, however, paying your rent with a credit card could be a viable stop-gap option to prevent missed rent payments and eviction. The APR on credit cards is also lower than some other borrowing emergency borrowing options, such as payday loans.\nDespite these potential perks, paying rent with a credit card can have major downsides:\n*   **Pay costly fees**. The processing fee charged by payment processing companies could be sizable and add to your financial burden or wipe out any credit card rewards you receive.\n*   **Increase your credit utilization ratio**. This ratio shows how much of your available credit you're using at any given time, and it's the second most important factor in your credit scores. The lower your ratio, the better, but it's smart to at least keep the overall utilization ratio and the ratio on each card below 30%. Going above that percentage can cause greater harm to your credit scores.\n*   **Risk maxing out**. Regularly putting large rent payments, especially if you don't pay them off quickly, could result in maxing out a credit card. Not only would this prevent you from using it for other purchases, but it will have negative credit score consequences. END
 TITLE: Can You Pay Rent With a Credit Card? CONTENT: What to Do if You Can't Pay Your Rent\n-------------------------------------\nIf paying rent with a credit card isn't an option for you and you're struggling to cover the expense, you have alternatives, such as:\n*   Seek assistance with rent if you are out of work and struggling to make payments. Check with your landlord as well as with local government agencies, charities or nonprofit aid groups to see whether they can help. For more information, visit the Consumer Financial Protection Bureau website, 211.org or FindHelp.org.\n*   Get a roommate to reduce rent costs.\n*   Consider relocating to a cheaper residence or area if you can afford to move.\n*   Find out whether your landlord offers bonuses for referring new tenants, and look for someone who wants to rent in your complex.\n*   Barter with your landlord to do repairs or other labor in exchange for a rent reduction.\n*   Borrow money from relatives or friends.\n*   Move in with family or friends, at least temporarily.\n*   Tweak your budget to ensure you've got enough money to cover rent each month, or create a budget if you don't already have one. END
 TITLE: Can You Pay Rent With a Credit Card? CONTENT: Other Ways to Give Your Credit a Lift\n-------------------------------------\nIf you were hoping to pay rent with a credit card to help build credit history, but you can't stomach the fees, there are other strategies. For example, keep your credit card balances low, pay all your bills on time each month and sign up for Experian Boost™† —a free way to count certain utility payments toward your credit score.\nAnother option is using a service such as RentTrack that reports your on-time rent payments to the three major credit bureaus. Rent payments aren't typically reported to credit bureaus, and using a service that does report them could help build a positive history and lift your credit scores (as long as you pay on time). END
 TITLE: Is it Better to Own a Home or Rent? CONTENT: When Does It Make Sense to Rent a Home?\n---------------------------------------\nPerhaps you've been told that you're better off putting your rent money toward a home purchase. It can seem like a more logical choice on paper, but renting is the more practical choice for some. END
 TITLE: Is it Better to Own a Home or Rent? CONTENT: What to Consider Before Getting a Mortgage\n------------------------------------------\nBuying a home is a massive decision in more ways than one. Not only do you have to find a home you'd be happy in, you've got to figure out how to pay for it. To determine if you're truly prepared for a mortgage, assess what you have saved for a down payment and what you could reasonably afford for a monthly payment. Make sure to leave enough room in your budget for savings, travel or any other financial goals.\nWhen mortgage lenders review your application, they closely scrutinize your credit, so it's essential to check your credit report before shopping for a house. Your credit and other factors, such as your debt-to-income ratio, are important to lenders deciding whether to approve your mortgage application and what interest rate and terms to grant you. If there are blemishes in your credit history, it's best to work on them before applying for a mortgage. A lower interest rate could save you thousands over the life of your mortgage.\nHomeownership can be truly rewarding if you know where your budget and credit stand and you've considered all advantages and drawbacks. END
 TITLE: Is it Better to Own a Home or Rent? CONTENT: Is a Mortgage Cheaper Than Renting?\n-----------------------------------\nIn general, the short-term costs of renting are lower than the costs of buying a home. Taking out a mortgage usually requires a down payment (usually anywhere from 3.5% to 20%), plus all the extra costs mentioned above.\nWhen you look at the big picture, a mortgage could be cheaper in the long run. That's because landlords often gradually increase rent annually, while a fixed-rate mortgage will have the same payments for the life of the loan (though taxes and other housing-related costs such as utilities can rise). That means that while a monthly mortgage payment may initially cost more than rent, after a few years, it could be cheaper than renting due to the tax savings and an unchanged mortgage payment.\nIf you later decide to sell the home, you can make money to put toward your next home. Better yet, homeowners who pay off their mortgage will see a huge reduction in their housing costs. As a renter, you don't build any equity, and the payments never stop. END
 TITLE: What to Do if You Can’t Afford to Pay Rent CONTENT: Speak With Your Landlord Before You Miss a Payment\n--------------------------------------------------\nIf you're struggling to pay your rent, the first step you take should be to talk with your landlord or property manager to explain the situation and ask for help. They may be willing to work with you if you have a good relationship and have been on time with rent payments in the past. And even if your relationship with your landlord is strained, it's never too late to rebuild trust by being transparent about your situation. Many property owners would rather not evict a tenant and risk a unit sitting empty, so being proactive about your situation could help you secure a workable solution.\nThe key here is in the timing: Make sure you contact your landlord or property manager as soon as possible so you can work out a solution together. If you wait until after you miss a payment, you could wind up making the situation worse. Communicate early and often about what's happening and your landlords or property managers might be more willing to help. END
 TITLE: What to Do if You Can’t Afford to Pay Rent CONTENT: Apply for Financial Assistance\n------------------------------\nIt can be alarming to find yourself in a position where you can't make ends meet, but luckily there are community and government resources to help.\nUnderstanding what resources exist in your local community is a great way to start your search for financial help. The National Low Income Housing Coalition, for example, has a searchable database you can use to find Emergency Rental Assistance programs near you. If you're struggling to access other essentials, like food, utilities or health care, 211.org is a useful resource to explore your options.\nSometimes local nonprofits and other community programs offer short-term rent assistance and other types of grant programs too. For example, many Salvation Army and Catholic Charities USA locations offer one-time rent assistance grants. The requirements vary for these programs and organizations, but they could be worth checking.\nAdditionally, if you are a member of a religious congregation or other local cultural or community institution, reach out to the local leaders and explain your situation. Many places of worship and local membership organizations often set aside funds for charity (sometimes called a \"benevolence fund\") to help their members through tough times.\nThere are also numerous local and federal government programs designed to assist people when they're facing hard times. Some programs might be specific to your state or city, but many are open to residents living almost anywhere in the United States. You can visit Benefits.gov to search for programs you might be eligible for. You can also check out more affordable housing options, especially if you worry that housing costs will continue to be a challenge for you.\nWhen you're in a serious pinch, it might be tempting to ignore other financial obligations, like student loans payments and credit card bills, but it's important to take a long-term view. If your current situation winds up negatively impacting your credit, it can become harder to secure credit in the future. One way you may be able to prevent this is to reach out to creditors before you miss any payments and let them know you're in a bind. They may be willing to work with you to push back a payment or find another solution that provides a bit of breathing room. In fact, many financial services organizations are offering debt relief programs due to the impact the COVID-19 pandemic has had on many people's finances. END
 TITLE: What to Do if You Can’t Afford to Pay Rent CONTENT: Move In With Family or Friends\n------------------------------\nIf it winds up becoming a choice between living with a friend or family member and not having a place to live at all, chances are you'll be better off living with someone you know. Moving in with family and friends can provide a helpful safety net when you fall on hard times because it'll give you more control over your living expenses right away.\nIf you're struggling with rent due to a change in your employment situation, living with family or friends could also allow you a bit more time to spend on job hunting without the added pressure of searching for housing too. And perhaps the biggest benefit of moving in with family and friends is the money you'll save when splitting rent payments, utilities and other housing expenses. This will free up room in your budget and make it easier to reach your financial goals—especially if you're lucky enough to live with someone who doesn't require market rate payments for your rent (or any payments at all). No matter what type of setup you have, make sure you have a solid budget and financial plan in place to make the most of things. END
 TITLE: What to Do if You Can’t Afford to Pay Rent CONTENT: Can Missing Rent Payments Affect Credit?\n----------------------------------------\nA missed rent payment on its own won't directly be reflected in your credit report. You could experience a credit score impact, however, if you continue to miss payments and your landlord decides to send the missed payments to collections.\nA damaged credit score could create bigger challenges down the road because companies often look at your credit history to decide whether to do business with you. Your credit also impacts other things, too, like your ability to finance a car, get a mortgage, obtain utility services and find a loan.\nNot only that, your landlord could add your missed payments and eviction (if it comes to that) to your rental history report, which is a document landlords may review when screening tenants who submit rental applications. Landlords prefer tenants who have a solid history of on-time rent payments, and having missed payments or worse in your rental history can make it harder to find a place.\nIf you take action now, no matter what happens, you'll be more likely to be prepared for changes ahead. END
 TITLE: What to Do if You Can’t Afford to Pay Rent CONTENT: The Bottom Line\n---------------\nIf you've been struggling to pay rent and are looking for a way out, don't panic. There is help available to get you back on track financially and keep your credit intact at the same time. Missing rent payments can have serious consequences that can outlast your financial predicament—so be proactive. Reach out to your landlord before missing any payments, apply for assistance from community and local agencies, move in with family or friends temporarily until things improve, or try other creative solutions like getting part-time work in addition to your full-time job. It may not seem like it now, but these solutions can help you get out of your current crisis.\nIf your credit is a concern, you can get a free copy of your credit report from all three consumer credit bureaus (Experian, TransUnion and Equifax) through AnnualCreditReport.com. Experian offers free access to your FICO® Score☉ based on Experian data and a free Experian credit report. END
 TITLE: What Credit Score Do You Need to Rent an Apartment? CONTENT: What Do Landlords Look for on Your Credit Report?\n-------------------------------------------------\nLandlords check your credit for many of the same reasons lenders do: They want to know if you're likely to pay your bill on time, based on your past history of paying off debt.\nIn addition to pulling your credit score, landlords may also check your credit report for evictions, bankruptcies, accounts in collections, loan defaults and late payments. Before submitting any rental applications, you'll want to check your credit report and score. You can do this for free at AnnualCreditReport.com; you can also access your Experian credit report and credit score directly through Experian. Looking over your reports and scores will tell you where exactly your credit stands, and will provide clues to what you'll need to do to increase your scores.\nIn addition to your credit, landlords may use other types of reports and background checks to screen you as a potential tenant. Tenant screening may also include criminal background checks, a review of your employment history or contacting references. If a landlord has reported your payment history to a credit reporting agency like Experian's RentBureau, you may have a renter's credit score that shows whether you've paid your rent on time.\nRenters in competitive cities like San Francisco, Boston and New York have average credit scores above 700, according to RENTCafé, so you might need to set your sights a little higher if you want to live there. END
 TITLE: What Credit Score Do You Need to Rent an Apartment? CONTENT: Tips for Getting Approved When You Have Bad Credit\n--------------------------------------------------\nA high credit score can be a point in your favor when you're applying to rent an apartment or house. If your credit score could use some help, take steps to improve it. Alternatively, you could look for ways to work around it. One idea is to seek out landlords who don't check credit—or whose credit scoring standards might be in line with your score. Hoping to find a landlord who's simpatico? Ask what their requirements are before you submit an application.\nChanging your environment might help as well. RENTCafé found that average credit scores varied significantly from one major city to another, and between large cities and surrounding areas. There was also a significant spread between luxury apartments and affordable housing. Renters in high-priced buildings had average credit scores of 669, compared with 626 in mid-range buildings and 597 for low-cost apartments. If your sights are set on a high-end rental, choosing a more modest option could help improve your eligibility.\nYour credit score isn't the only thing landlords will consider when reviewing your rental application. Try making yourself a more appealing candidate with these tips:\n*   **Highlight your income.** Demonstrating that you earn at least three to four times your rent on a steady basis goes a long way toward qualifying you for a rental even if your credit scores are low. If your income doesn't make you a stellar candidate at one place, look for another place with lower rent.\n*   **Pay more upfront.** You may be required to pay one to three months' worth of rent upfront as a security deposit if your credit is poor. You can also offer a few months' rent proactively as a gesture of good faith.\n*   **Make your case.** Maybe you have a story your landlord should hear: You've taken steps to overcome past finastrongcial setbacks or have a new career after completing your education. Writing a quick letter of explanation to add to your credit application might make a difference. Also think about whether your current landlord or employer would write you a letter of reference.\n*   **Look for a roommate.** Adding a roommate to your lease or rental agreement can increase your creditworthiness and your qualifying income.\n*   **Find a cosigner.** A cosigner with a good credit score can also bolster your case, but be cautious about exercising this option. If you default on your rent, your cosigner will also be on the hook. END
 TITLE: What Credit Score Do You Need to Rent an Apartment? CONTENT: Consider Improving Your Credit Before Applying\n----------------------------------------------\nIf credit issues are consistently preventing you from getting the apartment you want, think about pausing your apartment search and taking time to improve your credit. Of course, this strategy only works if you're in a position to postpone your move. But if you can wait—and work on your credit—you may improve your prospects. Several months or a year of making on-time payments, paying off late accounts and paying down debt can help to raise your credit score. And putting more time between any negative events like collections or bankruptcies and your rental application might help your application look more promising.\nYou might also want to take a look at Experian Boost™† . The free service from Experian connects to your bank account and adds bills such as utility, cellphone and streaming service payments to your credit report so they can be factored into your scores. The average Boost user who sees an increase improves their credit score by 12 points.\nThe credit score you need to secure a rental will vary; the higher your credit score and the cleaner your credit report, the better. You may be able to work around credit issues by finding a landlord who doesn't check credit, choosing a more modest place to live, or emphasizing financial strengths like a high income or large upfront payment.\nIn any case, if you're contemplating a move, don't wait to check your credit score and report. Going over your credit means you'll know what landlords see when they review your application. It can also help you know what steps to take to improve your credit—by paying down credit card balances, for instance. If you decide to postpone moving to work on your credit, check out free credit monitoring: You'll be able to keep an eye on your credit and celebrate your progress as it improves. END
 TITLE: How to Calculate Self-Employment Income CONTENT: Why Income Matters on a Credit Application\n------------------------------------------\nIncome doesn't appear on your credit report, and it doesn't factor into your credit score. But your income is still critical to helping you qualify for a loan or credit card because it helps lenders assess your ability to pay. If your monthly debt payments take up too much of your monthly income (indicated by a high debt-to-income ratio), a lender may see your ability to make payments as unsustainable and either deny your application or offer a lower credit line.\nAccuracy matters when it comes to reporting income. Falsely inflating your income to improve your chances of getting a loan is fraud, punishable by fines or even jail time. Lenders may verify your income, in which case lying (or even guessing) is counterproductive. On the other hand, you want to report all your qualifying income. If your estimate is too low, you'll have a harder time getting approved for the loan or line of credit you're seeking.\nBottom line: If you're going to submit income information on a credit application, take the time to make an accurate calculation. Here's how. END
 TITLE: How to Calculate Self-Employment Income CONTENT: Calculating Your Income for a Mortgage Application\n--------------------------------------------------\nMortgage lenders like to see stability—long employment histories and steady income. Most prefer to see at least two years of self-employment to show your ability to generate income over time. To calculate your monthly income for a mortgage application, start with this simple formula:\n1.  Find your net profit before taking exemptions or paying taxes (from Schedule C of your tax return) for the two most recent years you filed taxes.\n2.  Add these two figures together.\n3.  Divide the total by 24.\nSo, if your net profit was $110,000 in 2019 and $104,000 in 2020, your average monthly income would be $214,000 divided by 24, or $8,917.\nYour lender will likely verify your income by reviewing tax returns or tax transcripts as well as bank statements. You may also be required to show 1099 forms and provide a profit and loss statement for the current year. END
 TITLE: How to Calculate Self-Employment Income CONTENT: ### What if Your Reported Income Seems Too Low?\nMany taxpayers maximize their deductible expenses to lower their tax bills. That's great at tax time, but it minimizes your reportable income when you apply for a loan; lenders count the income you report on your taxes. If your monthly income turns out to be lower than you expected, consider these steps:\n*   **Include other sources of income.** Although the Credit CARD Act of 2009 limits the types of income you can include on a credit application, if you have any of the following, you may be able to include them in your stated income:\n*   Employment earnings\n*   Investments\n*   Retirement\n*   Public assistance\n*   Insurance payments\n*   Your spouse's earnings\n*   Alimony and child support\n*   Some financial aid\n*   **Limit your loan size.** Calculate a debt-to-income ratio that your lender will approve and reverse-engineer your loan. You may decide to buy a less expensive home or increase your down payment to lower your loan amount.\n*   **Look for a sympathetic lender.** Some lenders, for example, will review a few years' worth of bank statements to determine your income instead of relying on tax returns. This may play to your favor, though it may also cost you more in interest. An experienced mortgage broker can help you find lenders and loan programs that work best for your situation.\n*   **Build your business now and apply later.** Now may not be the best time to apply for a home loan. If your income took a hit during the pandemic or your business is just getting started, you may want to wait a year or two to let your income grow and then restart your home search. END
 TITLE: How to Calculate Self-Employment Income CONTENT: Reporting Income on a Credit Card Application\n---------------------------------------------\nYou can use the same simple calculation and additional sources of income shown above to estimate your income for a credit card application. Credit card companies may use stated income from your application without requiring additional verification. But they may ask you to verify your information with tax returns or other documentation, or use income estimation models to check your math. This means you should only provide a good faith estimate of your income—and be prepared to show your work.\nFinally, you may get an income request even after you have a credit card: You're online paying your credit card bill when a pop-up window asks you to provide your monthly income. Credit card companies may ask for an income update periodically to see if you qualify for a higher credit limit. Unless you can make a credible estimate off the top of your head, you may want to skip this exercise. There's no penalty if you decide not to respond to these pop-up requests.\nIf you want to be considered for a credit line increase, calculate your monthly income separately and contact your credit card company to request an increase. Or keep your estimated monthly income handy for just these types of occasions. END
 TITLE: How to Calculate Self-Employment Income CONTENT: Making the Most of Your Application\n-----------------------------------\nPresenting your income in the best possible light can be key to getting approved for the loan or credit line you want. While it's never a good idea to \"enhance\" self-employment income to make your application look better, you do want to account for as much of your actual income as possible to demonstrate your ability to pay back your debt.\nOf course, income is only one facet of your application. Your credit score and report also play a major role in qualifying you for a loan or credit card. As you prepare to apply for a loan or card, take a moment to prepare your credit. Review your credit score and report, and take steps to optimize your credit if you find areas that need improvement. Your reported income and credit file help tell the story of how well you're likely to manage new credit: Put your best foot forward. END
 TITLE: Are Credit Card Rewards Taxable? CONTENT: Konstantin and Nadezhda Anikeev made headlines earlier this year after the IRS contended they owed taxes on more than $300,000 in Rewards Dollars they earned using American Express cards in 2013 and 2014. When the Anikeevs took the case to court, a judge ruled that most of the rewards were rebates and thus not taxable. However, he determined Rewards Dollars earned from purchasing cash equivalents—buying money orders and reloading reloadable debit cards—_were_ taxable.\nIf you read the fine print of your credit card agreement, chances are you'll notice that cash-equivalent purchases such as money orders and cash advances are excluded from earning rewards. But what about the miles, points or cash back you earn from everyday purchases on rewards credit cards? While the IRS taxes income, these rewards aren't considered to be income. Instead, they're considered to be rebates, discounts or bonuses. While income is taxable, rebates and discounts are not. What about bonuses? Well, that depends.\nIf a credit card requires you to spend a certain amount of money to earn a bonus, then those bonus rewards aren't taxable. For example, if you receive $150 cash back for spending $1,000 in the first three months after account opening, you don't have to declare that $150 as income on your taxes.\nIt's a different situation if you didn't need to do anything to get the rewards. If you automatically get a $150 gift card after being approved for a credit card, with no spending requirement, that $150 bonus is considered income and is taxable.\nWhen you earn a bonus with no spending requirement, the credit card company may even send you a Form 1099-INT or Form 1099-MISC specifying the amount of income you earned. You'll need to report the bonus income on your taxes and submit the tax form to the IRS. Even if you don't receive a tax form from the credit card company, you still need to report this type of bonus as income when you file your tax return, so keep track of any such bonuses you earn. END
 TITLE: Are Credit Card Rewards Taxable? CONTENT: Are Business Credit Card Rewards Taxable?\n-----------------------------------------\nRewards earned with a business credit card are treated the same as consumer credit card rewards when it comes to income taxes. However, it's important to be aware that business credit card rewards can affect the amount you deduct on your taxes. That's because you can only deduct the _net_ _cost_ of business expenses, and credit card rewards may lower that cost.\nSuppose you bought $1,000 worth of computer equipment with your business credit card and earned $20 in cash back rewards for doing so. Normally, you'd be able to deduct the full $1,000 as a business expense. In this case, however, the $20 reward reduces your net cost by $20, so you can only deduct $980. (By the same token, using a $20 discount coupon on the purchase or getting a $20 rebate from the manufacturer would also reduce your net cost and affect the amount you could deduct on your taxes.) END
 TITLE: Are Credit Card Rewards Taxable? CONTENT: Enjoy Rewards Tax-Free\n----------------------\nRewards credit cards have a lot to offer. They can help you earn points or miles to pay for a trip, give you cash back on purchases, and provide travel and purchase protection and other benefits. Knowing that these perks are almost always tax-free is just the icing on the cake.\nAre you thinking of getting a new rewards card? To qualify for most rewards credit cards, you'll need good to excellent credit. If you're not quite sure where your credit score stands, get a free copy of your report from all three credit bureaus through AnnualCreditReport.com. You can also check your credit report and credit score for free through Experian.\nIf your credit score is less than stellar, it's worth taking some time to improve it before you apply for a rewards card. Consider using Experian CreditMatch™ to get paired with rewards credit cards suitable for your credit profile, which can take a lot of the guesswork out of finding your next credit card. END
 TITLE: What Is a Direct Dispute? CONTENT: The Difference Between Direct and Indirect Disputes\n---------------------------------------------------\nThere are two types of credit report disputes defined by the FCRA: direct and indirect. Both are free to the consumer, but the disputing paths differ.\n*   **Direct disputes** occur when a consumer directly contacts the source of the information, also called the data furnisher, that provided what they believe to be incorrect information to the credit reporting company. For example, if a late payment for your ABC Bank credit card appears on your credit reports but you know you've made all your payments on time, you can contact the bank directly to notify them of the inaccuracy and ask that they contact the credit reporting companies and correct the information. This same scenario is applicable for any aspect of your account, like balances or dates, and any form of credit, such as mortgages, auto loans, personal loans and student loans.\n*   **Indirect disputes** occur when a consumer contacts a credit reporting company to dispute information being reported by a lender or other source. It's \"indirect\" because you are submitting your dispute to the credit reporting company, which then contacts the data furnisher—normally a financial services company or debt collector—and asks them to investigate the claim of inaccurate credit reporting.\nSome consumers may choose to contact both the data furnisher and the credit reporting company. If you feel a lender has reported information incorrectly, you may wish to contact them directly first and discuss the issue before filing a dispute with the credit reporting agencies. If the lender agrees with you, they can contact the credit reporting company and have the information corrected.\nWhether you contact the lender first or contact only the credit reporting company to initiate a dispute, the goal, of course, is to ensure the information on your credit reports is accurate. Either way, the lender will receive notice that you are disputing the information so they can investigate whether there has been an error. If the disputed information that appears on your credit report is deemed to be inaccurate, the lender will correct it or have it removed from your report.\nIn certain circumstances, the credit reporting company may be able to update the account information if you have documentation showing that a change should be made. For example, if you provide a letter from your lender stating that a loan has been paid off, you can submit that documentation to the credit reporting agencies, including Experian. Upon review, the reporting agency may be able to use the documentation to update the account right away.\nSimilarly, if a consumer claims one of their debts has been discharged in bankruptcy and provides a copy of their bankruptcy discharge paperwork and schedule of debtors, the credit reporting company may be able to simply update the consumer's credit report accordingly. END
 TITLE: What Is a Direct Dispute? CONTENT: Why Are Direct Disputes Sometimes More Effective?\n-------------------------------------------------\nIf you feel that an account is being reported incorrectly, consider contacting the creditor to discuss the issue first. Going directly to the furnishing party before filing a dispute with the credit reporting company might actually result in a faster resolution since you have a contractual relationship with them. In some cases, your lender may advise you that they will issue a correction without you having to do anything further.\nAnother thing to keep in mind is the credit reporting company isn't the arbiter regarding whether you're liable for a debt, if you made a payment on time or what your current balance may be. The information about your loans and credit cards that appears on your credit reports always originates with your lenders. They are the ones who will decide whether or not an item should be updated or deleted.\nFiling your dispute with the credit reporting companies is also a good option. The systems the companies use to process consumer disputes are very sophisticated and allow you to choose the nature of your dispute and even attach documentary evidence to support your claim. Most disputes are completed within 30 days, and many much sooner than that. END
 TITLE: What Is a Direct Dispute? CONTENT: How Do I File a Direct Dispute?\n-------------------------------\nUnlike indirect disputes, where there are websites, addresses and phone numbers set up to accept your dispute, the same process does not exist when you contact the lender directly. However, that doesn't mean you won't be able to correct the information with your lender or a debt collector. In fact, the process is relatively simple. Follow these steps:\n1.  Contact your lender or debt collector. The fastest way to do this is by simply picking up the phone and calling them. It's not difficult to get a representative on the phone from either a lender or a debt collector.\n2.  Tell them you disagree with the information they reported to the credit reporting agencies, identify what you believe to be incorrect, and why. This can be as simple as, \"The balance you've reported on my credit reports is incorrect and I'd like you to correct it.\"\n3.  Once you've communicated your dispute, the data furnisher must perform a reasonable investigation into your claim. That investigation will vary based on your dispute. For example, if you claim the balance is being reported incorrectly, the lender will likely check their records for payments relative to the principal balance. If you claim a late payment is incorrect, the lender will likely check your payment record against due dates. The process will take no longer than 30 days and in most cases will take much less time.\n4.  Once the lender has completed the investigation into your claims, they will request changes or deletions to the credit reporting companies, as warranted. Your lender is required to change incorrect information with all the credit reporting companies where the information appears. The updated information may take a couple of billing cycles to appear in your credit report. If the information you disputed is accurate, however, it's not likely that your credit report will be changed.\nKeep in mind that there are certain items on your credit reports that are not subject to the dispute process. For example, your credit score isn't a disputable item. END
 TITLE: What Is a Direct Dispute? CONTENT: How Do Disputes Impact Credit Scores?\n-------------------------------------\nIf you dispute information on your credit report with either the lender, the credit reporting company or both and it results in information being modified or removed from your credit reports, your credit scores can be impacted. Because disputes are typically made to correct negative information that appears on a credit report, your scores could increase depending on the outcome of the investigation.\nFor example, if you disputed a derogatory entry and that entry was removed once the investigation was completed, your credit scores could benefit. Or if you disputed the balance of a credit card account and the balance was changed to a lower amount, your credit scores could also improve because you will have lowered your revolving credit utilization ratio.\nNot all dispute outcomes have a big positive impact on credit scores, however. For example, if you had several collections on your credit reports and you were able to have one removed during the dispute process, you should not expect your credit scores to improve significantly because of the prevalence of remaining derogatory information. Similarly, if you dispute an open credit card account as closed and the account is updated accordingly, it may cause your utilization rate to increase, which could in turn cause your scores to dip. END
 TITLE: 4 Ways to Use Your New Child Tax Credit to Help Your Kids CONTENT: How Will the New Child Tax Credit Affect Your Family?\n-----------------------------------------------------\nFor the 2021 tax year, qualifying parents will receive a refundable tax credit that is higher than the 2020 credit. This year, those who qualify will receive $3,600 a year for children under 6 years of age and $3,000 for children ages 6 to 17. Half will be paid in monthly installments from July to December of 2021; the other half may be claimed as a lump sum credit on your 2021 taxes. If you have children ages 2 and 6, for example, you will receive six monthly payments of $550 from July through December and an additional $3,300 credit on your 2021 taxes. Since the tax credit is refundable, you'll receive a cash payment if your tax liability is less than the amount of the credit.\nWho qualifies for the child tax credit?\n*   Married parents earning up to $150,000 can qualify for the additional credit amount.\n*   Head-of-household filers earning up to $112,500 can qualify.\nConfirm your eligibility and get more details at ChildTaxCredit.gov. Although there's talk of making these credits permanent, that hasn't happened yet: They're for 2021 only. For that reason, you may want to resist taking actions that will increase your monthly expenses indefinitely, especially if it would be hard to afford when the credits go away. That still leaves plenty of impactful ideas: Read on for a few great ways to spend your child tax credits. END
 TITLE: 4 Ways to Use Your New Child Tax Credit to Help Your Kids CONTENT: 1\\. Upgrade Your Technology\n---------------------------\nRemote schooling has brought home the message that technology can help kids succeed. Consider using this opportunity to outfit your kids for the future:\n*   Buy a basic laptop computer or tablet for each child who can use one.\n*   Look into a faster internet connection.\n*   Get a printer for the family to share. END
 TITLE: 4 Ways to Use Your New Child Tax Credit to Help Your Kids CONTENT: 2\\. Help Your Kids Develop Financial Skills\n-------------------------------------------\nA little bit of funding can go a long way toward helping your kids learn financial skills that last a lifetime. New tools like prepaid payment cards and budgeting apps give kids the opportunity to learn real money management skills. Just be prepared to offer guidance and limit risk (and access to money), so any mistakes made along the way don't devastate your household finances.\n*   **Provide younger kids with a reloadable** **prepaid card**. For kids who aren't yet ready for a credit card, prepaid cards offer an easy, low-risk alternativeto cash that they can use to make small purchases in-store and online. Cards like Greenlight and Gohenry are geared toward kids and feature kid-friendly apps that help young users understand their money's ebb and flow.\n*   **Establish a family grant program**. You can use it to fund ideas for improving your household, neighborhood or community. The planning skills they'll learn by taking an idea from inspiration to implementation will serve them for life.\n*   **Encourage them to start a micro-business**. With a small cash infusion, enterprising kids can buy supplies they need to provide all kinds of neighborhood services, including yard clean-up, child care or pet sitting. END
 TITLE: 4 Ways to Use Your New Child Tax Credit to Help Your Kids CONTENT: 3\\. Invest in Enriching Experiences\n-----------------------------------\nSix months is ample time to develop skills or explore a new interest. You might even plan a family getaway that'll build great memories together. Here are some other options:\n*   Find a tutor to help your child catch up on academic skills.\n*   Connect with a private college counselor.\n*   Buy or rent a musical instrument and sign up for music lessons.\n*   Get active by joining a sports league, or by taking tennis or dance lessons.\n*   Find classes that spark your kids' interest in cooking, cartooning, computer coding, fashion design, woodworking or whatever else they're curious about.\n*   Take a road trip to someplace you've never been.\n*   Visit family members you missed during the pandemic.\n*   Spend a day exploring your city or visiting a local amusement park. END
 TITLE: 4 Ways to Use Your New Child Tax Credit to Help Your Kids CONTENT: 4\\. Equip Yourself for Parenting and Work\n-----------------------------------------\nInvesting in your family is a benefit to everyone, including your kids.\n**Save money**. Money in the bank is a core component of financial resilience. Adding to your financial reserves will help you weather future challenges or pay for big purchases like a new home or college. Do this by:\n*   **Shoring up your** **emergency savings****.** If you need ideas for where to stash your money, consider a high-interest savings account.\n*   **C****ontributing to college savings.** A 529 savings plan offers tax advantages to help you put aside and invest money to pay for your child's college tuition. In some cases, you may be able to pay for K-12 education as well.\n**Get adequate child care**. If access to child care has been standing between you and steady employment, maybe now is the time to secure the help you need.\n**Improve your home environment**. Make needed home repairs, buy a kitchen table big enough for everyone to sit and do homework, set up a separate workstation for each child or apply the money toward moving to a more suitable space. If you make a large purchase, you may be able to take advantage of an interest-free payment plan that lets you pay your balance over six months—the number of months you'll be receiving child tax credit payments. END
 TITLE: 4 Ways to Use Your New Child Tax Credit to Help Your Kids CONTENT: Spend Child Tax Credits Where They're Needed Most\n-------------------------------------------------\nThough this year's child tax credit may be temporary, its impact can be long-lasting if you use the money where it's needed most. After more than a year of educational and social deprivation, having extra money to invest in your family's well-being can be its own kind of recovery. Spend wisely. END
 TITLE: Do Multiple Loan Inquiries Affect Your Credit Score? CONTENT: The Difference Between Hard and Soft Inquiries\n----------------------------------------------\nAll inquiries that appear on your credit reports fall neatly within one of two categories: soft inquiries or hard inquiries. A soft inquiry does not normally represent a formal application of credit, but indicates that your credit report was pulled by either an existing creditor or a company that wants to make you a firm offer of credit or insurance. They also can include a record of you requesting your own report and requests for employment purposes. Because they are not the result of a credit application, soft inquiries do not affect your credit score.\nHard inquiries normally occur when a consumer formally applies for some form of credit, like an auto loan, a mortgage or a credit card. These inquiries can remain on your credit reports for up to two years. Hard inquiries are seen by credit scoring systems and can cause you to have a lower score, but not always. To the extent an inquiry does cause you to have a lower score, the impact of the inquiry will not last more than 12 months and any impact is minimal. END
 TITLE: Do Multiple Loan Inquiries Affect Your Credit Score? CONTENT: How Do Inquiries for Mortgages, Auto Loans and Other Loans Impact Your Credit Score?\n------------------------------------------------------------------------------------\nHard credit inquiries, like other information on your credit reports, are seen by the major consumer credit scoring models, FICO® and VantageScore®. Having multiple hard inquiries within a short period of time can be predictive of credit risk, so having too many inquiries for different types of credit can result in a lower credit score.\nWhile all hard inquiries resulting from loan applications were once considered separate events by credit scoring models, that hasn't been the case for many years. FICO® and VantageScore have evolved in their treatment of multiple inquiries as a way to avoid unfairly penalizing a consumer for being a smart rate shopper.\nIn the contemporary versions of FICO®'s credit scores, for example, hard inquiries related to mortgage, auto loan and student loan applications are entirely ignored for 30 days from the date of the inquiry. So if you settle on a loan during that 30-day time period, your scores will not be affected by inquiries.\nAfter those inquiries have aged past 30 days, they still may not be counted as independent inquiries by credit scoring models. That's because FICO® considers similar loan-related inquiries that have occurred within 45 days of each other as a single inquiry in the scoring process.\nFor example, if you shopped around for an auto loan with five different lenders over a period of 45 days, FICO® would consider those five hard inquiries as one hard inquiry for credit scoring purposes. This is because the inquiries all occurred within 45 days of each other, and FICO® understands that you were rate-shopping for one loan, not five loans.\nIn VantageScore's credit scoring systems, all hard inquiries that occur within 14 days of each other are considered as one inquiry for the scoring process. This applies to all hard inquiries, regardless of the lender. END
 TITLE: Do Multiple Loan Inquiries Affect Your Credit Score? CONTENT: Inquiries Are Minimally Important to Credit Scores\n--------------------------------------------------\nThe reason any type of information in your credit report may factor into your credit score is its indication of credit risk. Taking on multiple new credit obligations in a short period of time indicates possible financial distress and elevated credit risk, which is why hard inquiries can impact your scores. That said, hard inquiries do not always impact your scores and are never the sole reason for a low score or being declined for credit.\nWhen you compare the influence of inquiries with the influence of the other credit scoring categories, you will see that the consideration of inquiries is the least important aspect of your credit reports. They just aren't that important to your scores.\nIn credit scoring systems developed by FICO®, hard inquiries fall into a category called New Credit, which is the least influential category of its credit score metrics. This category, which includes more than just the consideration of hard inquiries, accounts for 10% of the points in your FICO® Scores☉ . In VantageScore's credit scores, hard inquiries are considered to be \"less influential.\" So even if you have a few inquiries on your credit reports, there are many other more important and influential aspects upon which to focus, such as paying your bills on time and avoiding too much credit card debt. Consumers do not have low scores simply because of credit inquiries.\nIt's important to note, however, how the FICO® scoring models treat credit card inquiries. FICO®'s consumer-friendly logic that ignores loan inquiries less than 30 days old and consolidates multiple loan inquiries that are within 45 days of each other does _not_ apply to credit card inquiries. For example, if you have six credit card inquiries on your Experian credit report that are all less than 12 months old, they will be counted as six hard inquiries in the FICO® scoring process. END
 TITLE: Do Multiple Loan Inquiries Affect Your Credit Score? CONTENT: How Long Do Hard Inquiries Remain on Credit Reports?\n----------------------------------------------------\nConsumers benefit from being able to see who accessed their credit reports, and when. Hard inquiries can remain on your credit reports for as long as two years, but, from a credit scoring perspective, hard inquiries are only a factor if they are less than 12 months old.\nFICO® and VantageScore credit scoring systems will not consider hard inquiries once they have become 12 months old. As such, while hard inquiries may remain on your credit reports for 24 months, they cease to have any influence on your credit scores during months 12 to 24, if they even had any influence in the first place.\nWhile it is important to understand the inquiries that appear on your credit reports and how they can influence your credit scores, it's also important to keep their relevance in perspective. Some hard inquiries will lower your credit scores; some hard inquiries will not.\nIf you're not sure whether you have hard or soft inquiries on your Experian credit report, you can check your report for free. If your credit scores have been lowered as a result of credit inquiries or something more concerning, such as late payments or excessive credit card debt, there are steps you can take to improve your credit. In addition to making all payments on time and paying down debt, you can have utility, phone and streaming services added to your Experian credit report with Experian Boost™† to improve your Experian credit scores. Keeping an eye on your credit and getting credit for your positive bill payments could help you improve both FICO® and VantageScore credit scores at the same time. END
 TITLE: Should I Dispute a Collection? CONTENT: What Is a Collection Account?\n-----------------------------\nWhen you take out a loan, credit card or any other form of credit, typically you must agree to make timely payments on your account.\nIf you don't make your payments on time, your account may eventually become past due and—if you miss enough payments—fall into default. If you default on a credit account, an apartment lease or another type of service, the creditor may assign your debt to a third-party debt collector, or collection agency. These companies attempt to collect debts from consumers whose accounts are in default with their original creditors. Collection agencies are allowed to report your collection accounts to the three national credit reporting companies, Experian, Equifax and TransUnion.\nThe debt collector will likely contact you via phone call or letter asking that you make payments to them to satisfy the debt, which is perfectly legal. When you make payments to the debt collector, they will keep a portion of the amount as their fee and return the rest to the original creditor. Once your collection has been paid off, your credit reports will be updated to show the account has been paid and reflect the new zero balance.\nCollection accounts, like most negative credit report entries, can remain on your credit reports for up to seven years from the date your account first became delinquent with the original creditor. Collections can cause your credit scores to suffer, although newer versions of credit scoring models published by FICO and VantageScore® ignore collections that have been paid off. END
 TITLE: Should I Dispute a Collection? CONTENT: When Should I Dispute a Collection Account?\n-------------------------------------------\nIf you have a collection account on your credit report that you believe doesn't belong to you, you should file a dispute to have it removed. The process for filing a dispute is relatively simple and generally starts with you pulling your credit reports, which you can do for free weekly through at least April 2021 at AnnualCreditReport.com. You can also get your Experian credit report for free through Experian.\nNormally, collections are disputed because the debtor believes they are incorrect for some reason. For example, if you review a copy of your credit report and you see a collection account that you believe belongs to another person, has an incorrect balance or is greater than seven years old, you can file a dispute. (Keep in mind that payments made on your account may not be reported to the credit reporting agencies immediately.) If, however, the debt is valid and you simply disagree with the fact that your original creditor sent it to collections, disputing it will likely result in the account being verified as accurate and remaining on our credit file. END
 TITLE: Should I Dispute a Collection? CONTENT: How to Dispute an Account in Collections\n----------------------------------------\nIf you identify what you believe to be inaccurate collection account information, you can contact the credit reporting company that is reporting the collection and formally log your dispute.\nUse the following links to file a dispute with the appropriate credit bureau or bureaus:\n*   Experian\n*   Equifax\n*   TransUnion\nYou also have the option of contacting the collection agency directly and filing a dispute with them. This is formally referred to as a \"direct\" dispute because you are contacting the source of the allegedly incorrect information directly. If the collection agency concludes through their investigation that the collection account is, in fact, being reported incorrectly, they must either remove it from all of your credit reports or correct any erroneous information. In this case, keep an eye on your credit reports to ensure the company had the account removed. END
 TITLE: Should I Dispute a Collection? CONTENT: How to Deal With Accounts in Collections\n----------------------------------------\nThe easiest way to deal with collection accounts and collection agencies is to avoid them altogether by paying all of your credit obligations on time. If you never have an account go into default, you'll never have to deal with collection agencies or worry about collection accounts on your credit reports. Of course, if a collection account mistakenly appears on your credit report, that is a good reason to request to have it removed.\nIf you do end up with legitimately reported collection accounts, there are some steps that will make the process less stressful:\n*   **Don't ignore the debt.** Ignoring the debt or the debt collector will not make either of them go away. In fact, if you ignore the debt or debt collector for too long, they may end up suing you—and that you cannot ignore or you'll end up with a default judgment filed against you.\n*   **Deal with the creditor first.** Contact the original creditor or service provider and ask if they'll allow you to resume making payments to them directly. Some will allow for this, some will not. If the debt is returned to the original creditor, the collection agency should delete its account from your credit reports. This process is sometimes referred to as the collection account being \"canceled\" or \"returned to the creditor.\"\n*   **Try settling the debt.** You can certainly make an offer to the collection agency for less than you actually owe. This is called an Offer in Compromise or a settlement offer. For example, if you owe the debt collector $1,000, they may be willing to take $500 and consider the debt to be settled in full. This will end the collection process and result in a zero balance on your credit reports, but with the account showing \"settled\" rather than \"paid in full.\" Settling a collection account will not result in it being removed from your credit reports, though, as paying off the collection in full would. END
 TITLE: Should I Dispute a Collection? CONTENT: How Can Collections Affect Your Credit, Your Life and Your Employment Prospects?\n--------------------------------------------------------------------------------\nFrom a scoring perspective, collection accounts are either considered neutral or negative, but are never considered positive. In some cases you may be required to pay off a collection account before you can take out a new loan.\nCollections often lead to lower credit scores. The practical impact of this is that you may either be denied credit outright or be approved with a higher interest rate and less favorable terms if you apply for credit while the collection account is on your credit report.\nFinally, it is perfectly legal for an employer to view an applicant's credit report as part of the pre-employment screening process. There is a chance an employer may not hire a person if they have defaulted debts in collection on their credit reports. For example, if you have over $7,500 of defaulted debt on your credit reports, you would be disqualified from working for the Transportation Security Administration. END
 TITLE: What Can’t You Dispute on Your Credit Report? CONTENT: What Can't Be Disputed on a Credit Report?\n------------------------------------------\nFirst things first: If you see something on your credit reports that is patently incorrect or that you believe is the result of fraudulent activity, you should file a dispute to have it corrected or removed. There are, however, credit report entries that are traditionally indisputable as they are either a matter of factual record or important personal information.\nCredit inquiries are an example of credit report information that is generally not disputable. A credit inquiry is simply a record of access to your credit reports or contact information that can happen when you apply for a credit card or loan, check your own credit, or are preapproved for a credit product, among other instances. An inquiry is a matter of fact, and Experian is required to provide this information to you as a record of activity.\nBecause you have the right to see who has accessed your credit reports and on what date, disputing valid inquiries via the dispute process is not a normal practice. Of course, if someone has applied for credit in your name without your permission, the resulting hard inquiry can be removed via the dispute process in cases of demonstrable fraud.\nIf you do have valid inquiries on your credit reports, you should know their impact to your credit scores is minimal, if they have any impact at all. Soft inquiries, which are not the result of a credit application, have no effect on credit scores. Even hard inquiries, which are the result of an application for credit or services, don't always have a measurable impact on your credit scores.\nIf there is an impact, it is normally very minimal, and the credit scoring models created by FICO® and VantageScore® do not consider them at all once they are older than 12 months. Inquiries alone will not generally cause you to be declined credit—there are always more significant factors involved.\nThere are other items that cannot be disputed or removed due to their systemic importance. For example, your correct legal name, current and former mailing addresses, and date of birth are usually not up for dispute and won't be removed from your credit reports. This information, commonly referred to as personally identifiable information, or PII, is important as it allows the credit reporting companies to match credit information in their credit file databases to the correct consumer's credit reports.\nFinally, you cannot dispute your credit scores. Your credit scores are a product of sophisticated algorithms proprietary to FICO®, VantageScore and other score developers (often including lenders themselves). They are not a component of your credit reports but are, instead, numbers generated by the credit scoring models based on the information as it appears in your credit report at the moment it is requested. Because they are not part of your credit report, they are not disputable. END
 TITLE: What Can’t You Dispute on Your Credit Report? CONTENT: What Can Be Disputed on a Credit Report?\n----------------------------------------\nEssentially anything in the bankruptcy public records and accounts sections of your credit report can be disputed. For example, if you have a bankruptcy, a third-party collection account or an account with a lender on your credit report you feel is incorrect in any way, you can file a dispute with the credit reporting agency on whose report the information appears.\nYou can also dispute inaccurate PII, such as a name misspelling or an address with which you are unfamiliar.\nIf, after submitting a dispute, the data furnisher discovers that they are reporting incorrect information to the credit reporting agencies, they must correct it with all three of them. While the lender should update the information automatically, if changes are made, it can be a good idea to check the other credit bureaus just to be sure.\nIt is often beneficial to file a dispute directly with the company reporting the information, also known as the data furnisher, prior to contacting the credit reporting agencies. This is sometimes referred to as a \"direct\" dispute because you are filing your dispute directly with the lender or other business that reports the information to the credit bureaus. Notifying the lender that you believe an account is being reported inaccurately can help you get the information corrected more quickly.\nThe process of filing a dispute is relatively simple, and free. If you see information that you believe to be incorrect, you will identify those items, provide a basis for your dispute, and then submit the dispute online, via the U.S. mail or via a telephone call. Equifax and TransUnion have similar dispute processes to Experian. If an item is deemed to be inaccurate and is corrected or removed, the data furnisher who provided the inaccurate information must notify all three credit bureaus so they can update their records.\nExperian will not only investigate the allegedly incorrect information but will also update your credit file if the information is deemed incorrect once the investigation has been completed. You will then receive the investigation results. END
 TITLE: Why Do I Have So Many Credit Scores With One Credit Bureau? CONTENT: Is It Possible to Have More Than One Credit Score per Credit Bureau?\n--------------------------------------------------------------------\nFor a credit score to be calculated, a credit scoring model is used to analyze the information in your credit report, including your debt payment history, account balances and credit applications. The most commonly used scoring models in the United States are those published by FICO® and VantageScore®.\nAll three major credit bureaus have relationships with FICO® that allow them to use FICO®'s scoring models. With respect to VantageScore, VantageScore Solutions is a subsidiary of the credit reporting companies, which allows all three of them to use the VantageScore branded scoring models as well.\nThere are currently four generations, or versions, of the VantageScore credit scoring model and more versions of FICO®'s credit risk scores currently available across the three credit reporting companies. On top of the multiple versions of scoring models suitable for general use, FICO® also builds what are formally called industry-adjusted scores, which are scoring models for use by specific types of lenders, such as auto lenders or credit card issuers.\nBecause there are so many scoring models available, you will have numerous credit scores even with one credit bureau. When you also consider that there are three bureaus and many versions of FICO® and VantageScore risk scores, you can start to see why it is almost a guarantee that you'll have many credit scores, and they won't be the same.\nTo fully understand why you have so many credit scores, it's important not to confuse credit scores with credit reports. Not only are credit scores and credit reports not the same thing, but you have considerably fewer credit reports than you have credit scores. You only have one credit report with Experian, one credit report with Equifax and one credit report with TransUnion. So, just because you may have dozens of credit scores, it certainly doesn't mean you have dozens of credit reports. END
 TITLE: Why Do I Have So Many Credit Scores With One Credit Bureau? CONTENT: In addition to the numerous scoring models commercially available, there are other reasons why you can have so many different credit scores. Even if the same scoring model is used, the score may vary from one credit bureau to another because one report may have different information than another.\nFor instance, a lender may report to one credit reporting company but not the other two. Or, a lender may report updates to each of the three credit reporting companies at different times throughout the month. You can check and compare all three of your credit reports at AnnualCreditReport.com.\nBecause your credit reports can differ, your scores are unlikely to be the same. Your credit scores are determined solely by the information in your credit reports and if that information is different across your reports, your credit scores will also be different.\nAnother thing to know: Credit scoring models don't all use the same range of numbers when creating a credit score. The most commonly used versions of the FICO® and VantageScore models use a range from 300 to 850, but that's not universal. For example, other FICO® Score☉ versions have a 250 to 900 score range, and VantageScore versions 1 and 2 have a 501 to 990 score range.\nRather than focusing solely on the three-digit score, it's more important to understand what your score or scores mean to your lenders. If your scores are between 740 and 850, for example, then they are generally considered to be very good or exceptional and indicate very low credit risk. Conversely, scores 670 and below are considered to be fair or poor and indicate elevated credit risk. END
 TITLE: Why Do I Have So Many Credit Scores With One Credit Bureau? CONTENT: What Makes Up a Credit Score?\n-----------------------------\nWhat all credit risk scores have in common is they all consider information from your credit reports. Both FICO® and VantageScore credit scores consider your payment history, your debt, the age and diversity of your credit reports, and credit inquiries. The scoring models, however, do weigh the information differently, which is another reason your scores are unlikely to be the same across score brands.\nIf you pay all your bills on time, you will never have to worry about having a poor payment history. If you maintain reasonable amounts of debt, especially credit card debt, you will perform well in the debt category. If you only apply for credit when you actually need it, then you won't load up your credit reports with an excessive number of credit inquiries. As your accounts age, you can also see a score benefit thanks to the increased length of your credit history. If you perform well across all of these categories, your FICO® and VantageScore credit scores will likely be strong. END
 TITLE: Why Do I Have So Many Credit Scores With One Credit Bureau? CONTENT: How Do I Know Which Is My Real Score?\n-------------------------------------\nSimilarly to how you don't have just one score, you also don't have a \"real\" score. Suggesting there is a real score implies you have scores that aren't real or are, otherwise, fake. As long as a credit score is commercially available and used by lenders, it's certainly a real score, as it can influence lender decisions.\nHaving said that, lenders can pick and choose which scores or credit reporting agencies they'll use for their underwriting processes. The one notable exception is the mortgage industry, where the Federal Housing Finance Agency mandates the use of all three of your credit reports and three FICO® Scores.\nIt's unlikely you would know which credit report or which credit score model your prospective lenders will use to assess your creditworthiness. But whatever score they end up using for their decision-making process is certainly the most important score for them at the time of your application.\nThe good news is because credit scoring models see the same credit report information and have similar scoring categories, your scores should be directionally similar. What that means is if the information in your credit reports is positive, you'll likely have good credit scores. If your reports contain negative information such as late payments, default or bankruptcy, you may have poor credit scores regardless of the scoring model used.\nThis is why it's so important to build and maintain great credit reports with all three of credit bureaus. If you're able to do so, then you don't really need to worry about whether or not your lender uses a FICO® Score or a VantageScore credit score, or which report they'll use to calculate your score. They'll all be great scores that say the same thing about you, which is that you present little credit risk. END
 TITLE: Why Do My Credit Scores Differ Across the Credit Bureaus? CONTENT: What Are Credit Scores?\n-----------------------\nA credit score is a three-digit number calculated using the information in your credit reports. The most commonly used credit scoring models have a score range of 300 on the low end to 850 on the high end, although there are some exceptions. The higher your scores, the less risk you pose to existing or future lenders, and thus the more attractive your lending options will be.\nThe most commonly used credit scores in the U.S. consumer credit environment are FICO® and VantageScore® credit scores. FICO® and VantageScore's credit scores are used, collectively, over 20 billion times each year. Their scores are commonly used by lenders offering credit cards, auto loans, mortgages, personal loans and other forms of credit.\nLenders may also use their own proprietary credit scoring models after receiving the credit report, or third-party service providers may get your credit report, calculate scores and send both to the lender.\nCredit scoring models consider information from your credit reports that falls into one of five categories: payment history, amounts owed, age of credit, new accounts\/inquiries and credit mix. The better you manage credit in each of these categories, the higher your scores. And the higher your scores, the better deals you'll likely receive from lenders and other service providers. END
 TITLE: Why Do My Credit Scores Differ Across the Credit Bureaus? CONTENT: Reasons Why Your Credit Scores Differ From Bureau to Bureau\n-----------------------------------------------------------\nIt's unlikely that you'll have the same credit score across each of the three credit bureaus. In fact, there are several reasons why your scores from Experian, TransUnion and Equifax are typically different.\nWhile it is possible for you to have only one credit score, it's unusual. Consumers normally do not have a single score but rather many credit scores. This is due to a variety of factors, such as the many different credit score brands, score variations and score generations in commercial use at any given time. These factors are likely to yield different credit scores, even if your credit reports are identical across the three credit bureaus—which is also unusual.\nFor example, if you checked your FICO® 8 score and your VantageScore 3 score, they would likely be different. This would probably hold true even if you checked those two scores with the same credit bureau and on the same date. Different credit scoring systems, even though they're generally designed to do the same things, aren't necessarily going to consider information the same way, have the same score range or yield identical numeric scores.\nThe three credit bureaus are different companies, and each one maintains its own credit report information. As such, it is likely that your three credit reports will be at least slightly different at any point in time.\nOne of the reasons your credit reports may vary has to do with the companies that report, or \"furnish,\" information to the credit bureaus. Many lenders furnish information to all three major credit bureaus, but some may furnish information to just one or two of them. This difference in data results in distinct credit reports with each bureau and can lead to differing credit scores across the bureaus.\nAnother example of how your three credit reports may contrast is by the number of hard inquiries that appear on them at any time. Hard inquiries, those generally made when you've applied for some form of credit, are seen by credit scoring models and can have an impact on your credit scores, albeit minor.\nIf you've applied for a credit card with a bank or credit union, it's very likely they will pull one of your credit reports as part of their underwriting process. However, they may not pull all three of your credit reports. That means one of your three credit reports will contain a record of a hard inquiry that does not appear on your other two reports. That can lead to a difference in your credit scores across credit bureaus.\nAnother reason you may see discrepancies in your credit scores has to do with when they are produced. Your credit scores are calculated at a specific point in time, often referred to in credit scoring vernacular as a \"snapshot\"—they are not a component of your credit report that change over time as your credit report data changes. Instead, they are a separate tool used to evaluate the information in your report and indicate the risk of lending to you. When your score is requested by a lender or other party (or by you), it is calculated at that time and reflects your credit history at that instant.\nCredit report data furnished by lenders with whom you have active accounts is generally updated on a monthly basis. While accounts are updated monthly, each lender may report updates at different times throughout the month. As a result, your credit reports can go through a series of changes every 30 days. If your credit score was calculated toward the beginning of the month and then again toward the end of the month, the two scores will likely differ because your credit report has been updated, possibly several times, in the interim.\nThis difference in scores over time can be more pronounced if new negative information is added to your credit reports. Negative information can include late payments, collection accounts, bankruptcy or defaults. Negative information can cause lower credit scores, so the addition of such information can result in a considerable score difference when compared with prior scores. END
 TITLE: Why Do My Credit Scores Differ Across the Credit Bureaus? CONTENT: Will Checking Your Credit Reports Affect Your Credit Scores?\n------------------------------------------------------------\nChecking your credit reports from the credit bureaus will not affect your credit scores. When you check your credit report, a \"soft\" credit inquiry is posted to that report. Soft inquiries, which are different from hard inquiries, do not impact your credit scores.\nIn fact, the soft inquiries that appear on your credit reports cannot be seen by credit scoring models like FICO® and VantageScore. Even hard inquiries, which can be seen by scoring models, may not have any measurable impact on your credit scores. END
 TITLE: Why Do My Credit Scores Differ Across the Credit Bureaus? CONTENT: Practice Good Credit Habits to Improve Your Scores\n--------------------------------------------------\nWhile you have many different credit scores, they all have one thing in common: They're based on information in your credit reports. As long as your credit reports show responsible borrowing behavior, you are positioning yourself to earn and maintain good credit scores, regardless of the type of score, the date or the credit bureau report from which it is calculated.\nBy performing well in the credit scoring categories mentioned above, you will always have good credit scores. This means making all your debt payments on time, maintaining low credit card balances and applying for credit only when needed. The other two credit scoring categories—the age of your credit accounts and your account diversity—will improve over time as your credit reports age and become more populated with different types of credit experiences.\nOne final method of improving your credit scores is to add positive information to your credit reports. You can do this with Experian Boost™† , a free service that allows you to add phone, utility and streaming service accounts to your Experian credit report. By doing this you can improve your FICO® 8 and VantageScore 3 and 4 credit scores based on your Experian credit report. END
 TITLE: What Is the Fair Debt Collection Practices Act? CONTENT: What Is a Third-Party Debt Collector?\n-------------------------------------\nAs defined by the FDCPA, a debt collector is any party whose primary business is collecting or attempting to collect debts owed to another party. These debt collectors are generally called collection agencies, and they may be employed by companies looking to collect from customers who have defaulted on debts. In exchange for successfully collecting outstanding debts, the collection agency is generally paid a percentage of the amount they recover.\nFor example, if you default on an apartment lease and you owe the landlord or property owner $1,000, it's not uncommon for them to hire a debt collector to attempt to collect what they are owed. To that end, a debt collector may call you, send you collection letters, report the debt to the credit reporting companies as a collection account, and even go so far as to sue you in civil court and attempt to obtain a judgment. END
 TITLE: What Is the Fair Debt Collection Practices Act? CONTENT: How Does the Fair Debt Collection Practices Act Work?\n-----------------------------------------------------\nThe FDCPA not only provides a variety of consumer protections from abusive debt collection activities, but also sets the rules that apply to debt collectors. To understand the FDCPA, it's important to understand three major components of the law: who it applies to, how it regulates debt collector communication and the practices it prohibits. END
 TITLE: What Is the Fair Debt Collection Practices Act? CONTENT: Check Your Credit Reports for Collection Accounts\n-------------------------------------------------\nIf you have received calls or letters from debt collectors, you may want to check your credit reports to ensure the debt is being reported correctly. You can normally check your credit reports for free once every 12 months from each of the national consumer credit reporting companies. However, you can now check your credit reports for free every week through April 2021 using the same website you would normally use to check your free annual credit reports, AnnualCreditReport.com. You can also use Experian's free credit monitoring service to keep an eye on your Experian credit report and FICO® Score☉ , and get alerts about inquiries and other changes to your credit report. END
 TITLE: 7 Ways to Stick to Your Budget CONTENT: 7 Ways to Stay on Track With Your Budget\n----------------------------------------\nDepending on your situation, some of these tips can help you improve your relationship with your budget. While some don't require much work, others may be a bit effort-intensive as you work to find the right balance.\n### 1\\. Track Your Spending\nSetting monthly spending goals can help you visualize how you want to spend your money. But unless you track your purchases, it can be easy for your plans and your actions to fall out of alignment.\nCheck your online accounts at least once a week to stay on top of your expenses, and consider using a budgeting app like Mint, You Need a Budget or Every Dollar to help you categorize your expenses and match them with your goals.\nIf you don't want to use a budgeting app, track your monthly expenses on a spreadsheet or even in a notebook. This will be more labor-intensive on your part, but the key is finding a tracking method that works for you and that you'll use month after month.\n### 2\\. Stay Organized\nA big reason budgets fall by the wayside is they can be a pain to keep up. Budgeting apps not only help you categorize your expenses, but they can also help you keep track of multiple financial accounts in one place.\nWhat's more, many of these apps can import your transactions so you don't have to log in to each of your bank and credit card accounts individually to review statements and recent transactions.\nWhether you're using an app or not, consider setting a time each week to review your transactions to help you stay on track.\n### 3\\. Sleep on Big Purchases\nIf you're thinking about making a large purchase and it's not an urgent need, take a step back. Consider taking at least 24 to 48 hours to think about whether you should move forward with the transaction. If the excitement of the moment wears off and you no longer want the item, you can move on and save that cash.\n### 4\\. Request a Credit Limit Decrease\nIf you have problems with overspending, it may make sense to reduce the credit limit on your credit cards. You can do this by calling your credit card issuer and asking for a credit line decrease.\nJust keep in mind that once you've requested a decrease, you generally can't reverse it without undergoing a hard credit check. Reducing your credit line also means you'll need to take extra care so you don't use too much of your available credit: A high credit utilization ratio could be detrimental to your credit score.\n### 5\\. Find a Budgeting Style That Works for You\nThere are many different ways you can budget your money. Some methods are simple and don't require you to get into the weeds with your expenses, while others are more meticulous and give you more control over where your money goes.\nSome popular budgeting methods include:\n*   **Envelope system:** Determine how much money you want to spend on each category for the month, then fill an envelope for each category with the amount of cash you've budgeted for it. Once the money from an envelope is gone, you're out of money for that category unless you shift some from another envelope.\n*   **50\/30\/20 plan:** With this approach, 50% of your spending goes toward necessities, 30% toward discretionary spending and 20% toward financial goals, such as saving or paying off debt. This simple approach doesn't require you to keep up with a long list of categories, and you can adjust the percentages based on your lifestyle and goals.\n*   **Two-account plan:** Request to have your paychecks split into two bank accounts. With one, you'll pay all of your fixed expenses. With the other, you can do all of your discretionary spending. You don't need to track your expenses as closely with this approach, but you'll need to make sure to avoid overdrawing both accounts.\n*   **Zero-based budget:** This approach is similar to the envelope system, but it doesn't require you to use cash. Give every dollar you earn a purpose, including savings and debt payoff, so that your income minus your expenses equals zero at the end of each month.\nDepending on your goals and your motivation to budget, one method may be better for you than the others. While there's no wrong way to budget your money, it's important to find the approach that you're most likely to stick to.\n### 6\\. Reevaluate Your Budget\nIt's OK if the first budget you make doesn't go exactly as planned. What's more, your spending habits and goals can change over time, and if you're stuck with the same budgeting approach for too long, it can be difficult to stay motivated.\nMaybe you need to include a bit more room for groceries than you thought, or you overestimated how much you're spending on entertainment and you can reassign some of that toward saving or paying off debt.\nWhatever it is, be honest with yourself and make your financial goals a top priority.\n### 7\\. Communicate With Your Partner\nBudgeting can get a lot more complicated if you're budgeting with a partner, so it's crucial that you both establish the budget together and keep track of expenses together.\nIt's also important to take your time to communicate regularly over time to make sure you're both on the same page. If one partner goes off track and you don't communicate, it could damage the health of your finances and your relationship. END
 TITLE: 7 Ways to Stick to Your Budget CONTENT: Make Your Financial Plan a Priority\n-----------------------------------\nBudgeting isn't always a fun activity, but it can lay the groundwork for a successful financial plan. If you're having trouble sticking to your budget, these pieces of advice can help you tackle some of the larger issues that could be hampering your progress.\nRegardless of how you approach sticking to a budget, remember why you want to stay on track, and prioritize your financial plan above smaller expenses that can add up and get in the way of what you want to accomplish. END
 TITLE: What Is the Difference Between Credit-Based Insurance Scores and Credit Scores? CONTENT: Credit-based insurance scores are designed to predict the likelihood that you'll file an insurance claim. And much like how standard credit scores can affect your borrowing rates, a better credit-based insurance score will likely result in better insurance premiums and rates.\nThere are different types of credit-based insurance scores, just as there are different types of standard credit scores. LexisNexis® Risk Solutions builds credit-based insurance scores, called Attract™ scores. FICO® also creates credit-based insurance scoring models.\nAn insurance company might use credit-based insurance scoring models as one of the many attributes included in its risk-assessment methodology. This practice is completely legal at the federal level, but some states do restrict the practice. END
 TITLE: What Is the Difference Between Credit-Based Insurance Scores and Credit Scores? CONTENT: How Are Your Credit Scores Different From Your Insurance Scores?\n----------------------------------------------------------------\nCredit scores and credit-based insurance scores, while often considering the same credit report information, are not designed to do the same things. Credit scores are designed for one purpose: to predict the likelihood that you'll go at least 90 days past due on any credit obligation in the 24 months subsequent to your score being calculated.\nCredit-based insurance scores, on the other hand, are designed to predict whether or not you're likely to file an insurance claim.\nThe insurance company needs to know if the premiums for coverage are likely to exceed the cost of any claims you might file, and by how much. This is referred to as the \"loss ratio\" of an insurance customer.\nA considerable difference between credit scores and credit-based insurance scores are the score ranges and consumer access to credit-based insurance scores. While most credit scores range from 300 to 850, the commonly used LexisNexis Attract insurance scores range from 200 to 997. FICO® credit-based insurance scores range from 100 to 900. Neither the LexisNexis Risk Solutions nor FICO® insurance scores are available to consumers. END
 TITLE: What Is the Difference Between Credit-Based Insurance Scores and Credit Scores? CONTENT: Other Factors That Can Influence Your Insurance Premiums\n--------------------------------------------------------\nIn addition to reviewing the information on your credit reports and your credit-based insurance credit scores, insurance companies also take your previous insurance claims into account. This information is collected, stored and delivered to insurance companies by LexisNexis. The LexisNexis database containing information about your auto and homeowners claims is called the C.L.U.E. (Comprehensive Loss Underwriting Exchange) database.\nIf you've filed an auto or homeowners insurance claim in the past seven years, that information is likely to be included in your C.L.U.E. report. And because the C.L.U.E. report is legally considered a consumer report by the Fair Credit Reporting Act, you can check your auto and homeowners C.L.U.E. reports for free once every 12 months through LexisNexis Risk Solutions. Only claims filed in the past seven years will show up on your C.L.U.E. reports.\nOther factors that can influence your auto and homeowners insurance rates include your age, gender, marital status, the type of car you drive, where you live and the value of your home. The deductible amount on your insurance policy will also influence your insurance premiums. END
 TITLE: What Is the Difference Between Credit-Based Insurance Scores and Credit Scores? CONTENT: How to Improve Your Credit Scores\n---------------------------------\nYou need to know what's on your credit reports before you can improve your credit scores. You can get your free credit report through Experian; in addition, through April 2021, you can get free copies of your credit reports every week from all three of the major credit reporting companies (Experian, TransUnion and Equifax) at AnnualCreditReport.com.\nTo improve your credit scores, pay attention to these factors:\n*   **Payment history**: Both FICO® and VantageScore credit scores are heavily influenced by the presence or lack of negative information on your credit reports. In fact, that category is worth about a third of the points in your scores. If you can avoid negative information, you're well on your way to great scores. The best way to do that is to make all your debt payments on time, every month.\n*   **Debt management**: Roughly one-third of the points in your scores are determined by debt-related metrics. This includes how much debt appears on your credit reports, how many accounts you have with balances, and your credit utilization, which measures your balances relative to credit card credit limits and original loan amounts. The less debt that appears on your credit reports, the better for your credit scores.\n*   **Inquiries**: An inquiry is a record of entities, usually lenders, accessing your credit reports. Inquiries can temporarily lower your credit scores by a few points. It's best to apply for credit sparingly to limit the number of inquiries. END
 TITLE: What Is the Difference Between Credit-Based Insurance Scores and Credit Scores? CONTENT: Managing Your Credit-Based Insurance Scores\n-------------------------------------------\nPutting another set of scores on your radar doesn't necessarily mean you have to change your existing credit management practices to earn and maintain great insurance scores. Because both credit scores and credit-based insurance scores are largely influenced by the same information in your credit reports, the advice regarding score improvement is applicable for both score varieties.\nIf you can avoid negative credit information and excessive credit card debt, you're well on your way to earning great scores. If you can also, to the extent possible, avoid filing both auto and homeowner claims, that will also help to ensure your insurance premiums are as competitive as possible. END
 TITLE: How to Budget When You’re on a Very Low Income CONTENT: What Is a Budget?\n-----------------\nIf you want to become more financially stable, the first step is to get your financial life organized. One of the best ways to do this is to make a budget. The idea of budgeting can sound intimidating, but a budget is just a way of understanding where your money is coming from and where it's going. In the short term, a good budget can help you do things like save money on a car or other large purchase, pay off debt and make payments on time. In the long run, a solid budget can help you prioritize what's important in life as you plan for your future and set goals.\nAlmost all budgets have two main parts you'll need to track: _income_, which is how much money you have coming in, and _expenses_, which is how much money you have going out. While the majority of income for many people comes from a job, what counts as income is broader than you might think. For example, child support, Social Security payments, alimony and other things you might not think amount to much all count toward income.\nUnderstanding expenses can seem pretty straightforward because people often assume they know what they're paying for on a regular basis—but don't be tempted to skip this part: People often overlook small purchases and expenses that add up to a lot over time. For example, Americans spend an average of $20 per week eating out for lunch, which adds up to $1,043 per year. END
 TITLE: How to Budget When You’re on a Very Low Income CONTENT: Even if you think you won't have any extra money at the end of the month, it's still important to see where that money goes.There are different budgeting strategies out there to suit different personalities, but the important thing is to just try one. Here are some basic steps to get started making a budget:\n1.  **Figure out how much money you receive each month.** Be sure to include payments from all sources, including government sources and odd jobs, as well as your regular income. (Don't include monetary gifts unless it's a recurring gift.) If your income isn't the same each month, use the past three to six months to come up with an average amount.\n2.  **Calculate your monthly expenses.** If you have a bank account, review a few months of your statement to see where your money is going. Expenses include your fixed monthly expenses (rent\/mortgage, utilities, car payment), which are things that cost the same each month, as well as variable expenses (groceries, gas), which are regular expenses that are not a set cost each month. Make sure to count any subscriptions you have, as well as discretionary spending, which can vary each month and might include clothes or birthday gift purchases. If you pay for most things in cash, gather any receipts you have and organize them by month, or start tracking your receipts now by noting your expenses in a notebook or file.\n3.  **Compare your expenses to your income.** Create a list of all your monthly expenses and compare it with how much money you bring in each month.\n4.  **Make a game plan**. Now that you have a sense of your financial picture, you can make a plan. Outline your goals and priorities, and learn strategies for how to take action. END
 TITLE: How to Budget When You’re on a Very Low Income CONTENT: Put Your Budget to Work\n-----------------------\nWhat do you do if your budget shows your expenses are more than your income? The general rule of thumb is you can either spend less money or make more money—but that's easier said than done.\nGoing forward, it's important to track your expenses to help you identify areas where you might be wasting money or overpaying for items and services. Budgeting can also help you come up with strategies for stretching your money further and spending less. If you don't budget, however, you won't know how much more money you need to make or how much less you need to spend to make sure your income can cover your monthly expenses.\nBetween making more money and spending less money, cutting your expenses is the simpler place to start. Here are some way to cut costs:\n*   **Get choosy.** First, distinguish between needs and wants. Do you need streaming music or video services? Can you cook or pack your own lunches and dinner instead of getting takeout? Do you need a gym membership or can you work out at home? These are discretionary expenses, and they're often the best place to start if you're looking to trim your spending.\n*   **Change it up.** You can also take a close look at your variable expenses, which are the items that can change from month to month. You might need to get creative in order to save money on food, transportation and other activities, but all of these things add up over time, and your pockets will thank you.\n*   **Fixed expenses are fair game.** You might also be able to save money on fixed expenses. For example, are there programs you can take advantage of that will lower your mortgage payments? Can you renegotiate your credit card payments? Is there a way to lower your car insurance premiums? You could also consider taking in a roommate to cut on housing costs or even move to a different apartment to save a bit more each month.\nIf you're on a very low income, you may find yourself in a situation where your budget is in the negative. If there's not enough money for everything, prioritize what needs to be cut back on or eliminated altogether before considering other options like using payday loans, which charge extremely high interest and fees and can lead to more debt problems down the road. END
 TITLE: How to Budget When You’re on a Very Low Income CONTENT: The Role of Savings in a Budget\n-------------------------------\nIdeally, the money you save by creating a budget can get you on solid financial footing now, but don't forget about your future: Do whatever you can to put some money toward an emergency fund or retirement.\nStarting an emergency fund in particular is important because it will help you weather unexpected expenses and stick to the goals set in your budget. Life happens, and when it does, an emergency fund that you keep in a dedicated savings account can prevent you from falling into the same financial situation you've worked so hard to dig yourself out of.\nMany experts advise putting aside three to six months' worth of expenses to cover basic living expenses, but even just one month's worth of expenses can make a difference. Saving even $5 or $10 a week could help offset an emergency if your car breaks down or you need to pay a medical bill you weren't expecting.\nIf you need to build savings but cutting costs isn't cutting it, it might be time to consider picking up some extra work. Getting additional work doesn't have to be another full-time job. For example, do you have a skill people would pay for? Look for freelance work and offer your services. Do you have a working vehicle? Consider trying a side hustle like food delivery or ridesharing. Do you have an extra room in your house? Consider renting it out.\nYou might think that \"saving for savings\" doesn't make financial sense, but it's one of the best ways to prevent future financial disasters and keep your goals on the right track. END
 TITLE: How to Budget When You’re on a Very Low Income CONTENT: How to Get Help\n---------------\nIf you have more money going out than coming in and you're in a situation where you truly can't cover your basic needs like rent or debt payments, you may be able to get help through credit counseling or financial assistance. If you'd just like some help figuring out how to lower your debt to free up money in your budget, you still could benefit from a certified credit counselor.\nEven if you're on a very low income, budgeting is worth the effort. It may seem difficult to create a budget and impossible to get in financial shape, but with a little effort, you can improve your financial outlook and work toward achieving your goals. END
 TITLE: Earn Cash Back With These Debit Cards CONTENT: Here are some of the top cash back debit cards that are available, along with some of their features to help you find the right one for you.\n### Lending Club Rewards Checking\n*   **Cash back earning rate: Unlimited 1% back on online and signature-based purchases.**\n*   **Monthly fee**: $0\n*   **Minimum opening balance**: $100\n*   **ATM access**: Unlimited ATM fee reimbursements worldwide.\n*   **Other features or requirements**: Offers up to 0.15% APY. Must have a Rewards Checking or Champion Checking account for at least 30 days that's received at least $2,500 worth of direct deposits or has an average balance of at least $2,500.\n### Axos Bank CashBack Checking\n*   **Cash back earning rate: Up to 1% back on signature-based purchases, up to $2,000 in total rewards per month.**\n*   **Monthly fee**: $0\n*   **Minimum opening balance**: $50\n*   **ATM access**: Unlimited domestic ATM fee reimbursements.\n*   **Other features or requirements**: You must maintain a $1,500 average daily balance to earn 1% cash back. If your balance falls below that threshold, you'll earn a 0.5% cash back rate. Be sure to review rewards exceptions, as they include some common spending categories such as purchases made at supermarkets, superstores and grocery stores.\n### Serve® American Express® Prepaid Debit Account\n*   **Cash back earning rate: Unlimited 1% back on all purchases.**\n*   **Monthly fee**: $7.95\n*   **Minimum opening balance**: $0\n*   **ATM access**: Fee-free withdrawals at over 30,000 ATMs.\n*   **Other features or requirements**: This is a prepaid debit card, so you must load money onto the card to use it for purchases; some reload options come with a fee.\n### Cheese Debit Card\n*   **Cash back earning rate: Up to 10% back at certain retailers; 0.25% base rewards rate.**\n*   **Monthly fee**: $0\n*   **Minimum opening balance**: $0\n*   **ATM access**: Fee-free withdrawals at over 37,000 ATMs.\n*   **Other features or requirements**: Earn a 3% bonus on your deposits for 30 days for each friend you refer who deposits at least $50 when they open their account. END
 TITLE: Earn Cash Back With These Debit Cards CONTENT: How Does Debit Card Cash Back Work?\n-----------------------------------\nFor the most part, debit card cash back rewards programs work similarly to cash back credit card programs. When you make an eligible purchase, you'll earn a rewards rate based on the card's applicable rewards rate.\nFor many cards and many purchases, that means a flat 1% back. Other cards may earn you a much higher rate, but only with select retailers. Depending on how you spend your money, one card may have the potential to earn you more than other options.\nBefore you open an account, though, make sure you understand its rewards limitations. With some cards, for instance, there's a cap on how much you can earn every month. If the limit is low and you expect to exceed it based on what you normally spend, that may not be a problem. If you're a big spender, you'll be leaving money on the table if you're not able to earn rewards on all of your transactions.\nIn other cases, you may need to maintain a minimum balance or pay a monthly fee. Consider whether these drawbacks are worth it before you make a decision. END
 TITLE: Earn Cash Back With These Debit Cards CONTENT: Are Cash Back Debit Cards Worth It?\n-----------------------------------\nThe rewards you can get from a cash back debit card won't be as valuable as what you can get from a cash back credit card. So if you're looking to maximize how much you earn, consider using a credit card instead.\nFor example, the Wells Fargo Active Cash℠ Card offers unlimited 2% cash back on every purchase you make.\nIf you want the chance to maximize rewards even more, the Chase Freedom Flex℠ offers a flat 5% cash back on up to $1,500 spent every quarter on rotating bonus categories when you activate, plus 5% back on travel booked through Chase, 3% back on dining and drugstores and 1% back on everything else. What's more, as a new cardholder, you'll earn a $200 cash bonus after you spend $500 in the first 3 months and 5% back on up to $12,000 in grocery store purchases during your first year with the card.\nKeep in mind, though, that earning cash back with a debit card may be better than with a credit card if you tend to carry a balance. Interest charges can easily wipe out any value you get from a credit card's rewards program. Unless you can pay your balance in full every month, a cash back debit card might be worth consideration.\nAlso, if you prefer to avoid credit cards in general, it may be a no-brainer to choose a cash back debit card instead. END
 TITLE: Earn Cash Back With These Debit Cards CONTENT: Check Your Credit If Applying for a Credit Card\n-----------------------------------------------\nYou typically don't have to worry about a credit check when opening a checking account. But if you're thinking of applying for a cash back credit card, check your credit score before you do so.\nBy using Experian CreditMatch™, you can be paired with credit cards matched to your credit profile.\nThe best cash back credit cards tend to require good or excellent credit, which means having a FICO® Score☉ of 670 or higher. Meeting that threshold doesn't guarantee approval, though. So if you're right at that level or below it, consider working on improving your credit before you apply. In the meantime, you can still earn cash back through a debit card. END
 TITLE: Why Do I Only Have a Credit Score With One Credit Bureau? CONTENT: What Is a Credit Score?\n-----------------------\nA credit score is a three-digit number that indicates your level of credit risk. Credit scores are calculated using sophisticated scoring algorithms that consider much of the information from your consumer credit reports. Most of the commonly used credit scores—those from FICO® or VantageScore—range from 300 to 850. A lower score indicates elevated credit risk, and a higher score indicates lower credit risk. END
 TITLE: Why Do I Only Have a Credit Score With One Credit Bureau? CONTENT: Why Can Your Score Differ From Bureau to Bureau?\n------------------------------------------------\nIt's highly unlikely that you will have the same FICO® or VantageScore scores from each of the three credit bureaus. Your scores, however, should be directionally similar, meaning if you have great credit reports, you will have great credit scores regardless of which credit report or credit score brand a lender chooses to use.\nThe primary reason your scores probably won't be exactly the same is that your credit reports are unlikely to be identical. If you have different credit reports, you'll have different credit scores. A secondary reason, which applies only to FICO® Scores☉ , is that the scoring models are different across the three credit reporting agencies. So, even if you did have identical credit reports across the three credit bureaus, your FICO® Scores would still be different. This does not apply to VantageScore's credit scoring models, as they are identical across the three credit bureaus.\nIt is possible that you can have scores on just one or two of your three reports. The reason why this can happen is that all of your credit reports must qualify to be scored, meeting minimum credit scoring criteria to make them scoreable credit reports. END
 TITLE: Why Do I Only Have a Credit Score With One Credit Bureau? CONTENT: Building a Credit Report With All the Credit Bureaus\n----------------------------------------------------\nOptimally, you'd like to have a well-established and scoreable credit report with all three of the credit reporting agencies, eliminating the concerns about qualifying for a credit score.\nIf you do not have a credit score with all three of the credit bureaus, then it's a good idea to rectify that by establishing credit that will appear on all of your credit reports. The first step in that process is applying for credit with lenders that report information to all of the credit bureaus. This will ensure that while you're managing your loan or credit card account, the history of that account will appear on all of your credit reports and will likely qualify you for all scores calculated by the FICO® and VantageScore models.\nIn addition to applying for credit with mainstream lenders and credit card issuers, you can also employ other strategies to help you build credit. These include:\n*   **Apply for a secured credit card.** With secured credit cards, you make a deposit with the financial institution and it, in turn, will issue you a credit card with a credit limit that is equal to or close to your deposit. Before opening a secured card, be sure to verify with the issuer that it reports to all three of the credit bureaus.\n*   **Get a credit-builder loan.** A credit-builder loan is exactly what it sounds like. Credit-builder loans are small-dollar loans with a short repayment period. The loans are reported to the credit bureaus and, thus, help you to establish a credit report.\n*   **Become an authorized user.** You can have your name added to an existing credit card account that belongs to another person, such as a parent or a spouse. Most of the time the card issuer will report the history of the account to your credit reports, thus helping you to build, rebuild or establish a credit report. You will not have any liability for the debt incurred on the card.\n*   **Get credit for utility and phone payments.** Experian Boost™† is a service that allows you to add your phone and utility accounts to your Experian credit report. These accounts are scoreable entries under the contemporary FICO® and VantageScore credit score models and can improve your Experian credit score instantly. END
 TITLE: Why Do I Only Have a Credit Score With One Credit Bureau? CONTENT: Keeping Score\n-------------\nTo fully enjoy all of the benefits of and access to inexpensive financing, you'll need to have solid credit scores. That means you'll need to have credit reports that meet all of FICO®'s and VantageScore's minimum credit scoring criteria.\nThis is easily accomplished by building credit with lenders that report your information to all three of the credit reporting agencies on a monthly basis. After you've opened even one account with a mainstream lender, you will eventually qualify for a credit score with all of the credit reporting agencies. END
 TITLE: What Credit Cards Does Costco Accept? CONTENT: Credit Cards Accepted at Costco Warehouses\n------------------------------------------\nAll Costco stores accept any credit card backed by the Visa network. Visa-backed cards Costco accepts include:\n*   **Chase Sapphire Preferred® Card**: This card's rewards include 3 points per $1 spent on takeout and dining out, 2 points per $1 spent on travel, and 1 point per $1 on all other purchases. These rewards could help to offset the card's $95 annual fee. Spend $4,000 on purchases in the first 3 months from account opening and earn 100,000 bonus points.\n*   **Chase Freedom Unlimited®****®**: This card has no annual fee and an introductory 0% annual percentage rate (APR) on purchases for 15 months, at which point the APR climbs to 14.99% to 23.74% (variable). Earn 5% cash back on travel purchased through Chase Ultimate Rewards, 5% cash back on grocery store purchases (although that doesn't include warehouse stores such as Costco, Target and Walmart) on up to $12,000 in the first year, 3% cash back on dining and drugstores and 1.5% cash back on all other purchases. Spend $500 within 3 months from account opening and get a $200 bonus. END
 TITLE: What Credit Cards Does Costco Accept? CONTENT: Credit Cards Not Accepted at Costco Warehouses\n----------------------------------------------\nCards from American Express, Discover or MasterCard aren't accepted in Costco stores. However, you can shop online at Costco.com or using the Costco app with cards backed by the Discover and MasterCard network such as:\n*   **Chase Freedom Flex℠**: This card has a 0% intro apr on purchases for 15 months; then the variable APR is 14.99% to 23.74%. Earn 5% cash back on grocery purchases (not including warehouse stores such as Target and Walmart) on up to $12,000 spent in the first year; 5% cash back on up to $1,500 in combined purchases in bonus categories that change each quarter; 5% on Chase travel purchased through Ultimate Rewards®; 3% on dining and drugstores; and 1% on all other purchases. Spend $500 within 3 months of account opening and get a $200 bonus. END
 TITLE: What Credit Cards Does Costco Accept? CONTENT: Why Do Costco Warehouses Only Accept Visa Credit Cards?\n-------------------------------------------------------\nIt's unusual for large retailers to restrict payment methods. However, Costco has a partnership with Visa, so Visa is the only card accepted in-store. (Costco previously had a similar partnership with American Express that ended in 2016.) END
 TITLE: What Credit Cards Does Costco Accept? CONTENT: Be Prepared With the Right Credit Card at Costco\n------------------------------------------------\nThe credit cards above require good to excellent credit. See if you may qualify by checking your credit report and credit score. If necessary, improve your credit score by paying down debt, paying bills on time and avoiding applications for new credit. Visit Experian CreditMatch™ to be paired with cards that fit your credit profile. With the right credit card in hand, you can make the most of your Costco visit. END
 TITLE: How to Get a Loan With Bad Credit CONTENT: How Does Bad Credit Affect Your Ability to Get a Loan?\n------------------------------------------------------\nFor credit scores that range from 300 to 850, a score lower than 670 could be considered a bad credit score by lenders. Having bad credit could limit your options and lead to more expensive loan offers.\nPeople with bad credit tend to have negative marks in their credit reports, such as late payments or accounts that are past due or in collections. The resulting low credit score tells a lender that the person is more likely to miss a loan payment in the future, which could cost the lender money.\nSome lenders decide to limit their risk by only working with prime (good credit) borrowers. Others see it as a business opportunity and focus on offering loans to subprime (bad credit) borrowers. There are also lenders that offer loans to borrowers across the credit spectrum.\nIn general, lenders that offer loans to borrowers with bad credit may offset their risk by charging a higher origination fee and interest rate, resulting in a higher annual percentage rate (APR).\nFor example, say you want to borrow $10,000 and repay the loan over three years.\n*   If you have bad credit, you might receive a loan offer with a 5% origination fee and 29% interest rate—adding up to a 32.8% APR. You'd wind up paying about $419 each month and $5,086 in interest by the time the loan is paid off.\n*   If you have good credit, you might get a loan offer with a 1% origination fee and 10% interest rate—a 10.69% APR. You'll pay about $323 each month and $1,616 in total interest.\nA loan's APR takes its interest rate, fees and repayment term into account, which is why comparing loan offers' APRs can help you determine which loan is cheapest overall. Lenders often advertise an APR range with their loans, and your offers' rates can depend on your creditworthiness, the loan amounts and the repayment terms. END
 TITLE: How to Get a Loan With Bad Credit CONTENT: Getting a Personal Loan With Fair or Bad Credit\n-----------------------------------------------\nFewer lenders will give you a loan if you have bad credit. However, you may still have options, and shopping around to find your best offers is still a good idea.\nYou could start by looking for lenders that regularly work with borrowers who have fair credit—credit scores ranging from 580 to 669. Here are two popular options:\n*   Avant is an online lender and most of its borrowers have a credit score of 600 to 700. The lender offers personal loans ranging from $2,000 to $35,000 with 24- to 60-month repayment terms, and there's an administrative fee of up to 4.75% on the loans.\n*   Upstart requires a credit score of 580 or higher, but it also looks at nontraditional factors (such as your employment history and higher education) that may make it easier for some borrowers to get approved with a low rate. Loan amounts can range from $1,000 to $50,000 with either three- or five-year terms and an origination fee of 0% to 8%.\nThe best options can also change over time. Even if your financial situation stays the same, lenders regularly tighten or ease their credit requirements based on competition in the marketplace and changes in the economy. END
 TITLE: How to Get a Loan With Bad Credit CONTENT: Consider Improving Your Credit Before Applying\n----------------------------------------------\nIf you aren't looking for an emergency loan, you may want to focus on improving your credit before borrowing money.\nYou can see how even a small change in your loan's interest rate can directly impact your monthly payment and how much you pay overall.\nPersonal Loan Calculator\n------------------------\n†The information provided is for educational purposes only and should not be construed as financial advice. Experian cannot guarantee the accuracy of the results provided. Your lender may charge other fees which have not been factored in this calculation. These results, based on the information provided by you, represent an estimate and you should consult your own financial advisor regarding your particular needs.\nMoving from a bad to excellent credit score could take months or years. But even moving up within the fair credit range could give you more options and better offers. Try these tips to improve your scores:\n*   **Make your bill payments on time.** Making your credit accounts payments (e.g., loans and credit cards) on time can add positive information to your credit reports. Some types of bills, such as phone or utility payments, don't commonly appear on your credit report. But falling behind could lead to a collection account that hurts your credit.\n*   **Sign up for Experian Boost™† .** If you want to get credit for the utility, phone and select streaming service payments that you've made on time, you could sign up for Experian Boost and add these to your Experian credit report. On average, users who got a boost saw their FICO® Score☉ 8 based on their Experian credit report go up by 13 points.\n*   **Pay down credit card balances.** Lowering your credit card balances can decrease your credit utilization ratio, which may improve your credit scores. Depending on why you have bad credit, this may be one of the fastest ways to raise your scores.\nThe steps you'll want to take could depend on your unique credit report. When you check your credit score for free with Experian, you'll see which factors help or hurt your credit score, and can then take a strategic approach to improving your credit. END
 TITLE: How to Get a Loan With Bad Credit CONTENT: What to Do if You're Denied for a Loan\n--------------------------------------\nWhen a lender rejects your loan application because of your credit, you can get a free copy of your credit report within 60 days. You'll also need to decide if you want to apply for a loan elsewhere.\nWhile getting denied for a loan doesn't hurt your credit, each new application could result in a hard inquiry that could ding your score temporarily. With this in mind, try to get prequalified with a soft inquiry before submitting more applications.\nOr, if you can wait, improving your creditworthiness might make more sense. Increasing your credit scores is part of the equation. But other factors could also be important, such as your debt-to-income ratio. You might need to increase your income or pay down other debts before you can get a loan. END
 TITLE: How to Get a Loan With Bad Credit CONTENT: Alternatives to Loans When You Have Bad Credit\n----------------------------------------------\nIf you're having trouble getting approved for a loan and you need money right away, you could also look for alternative options.\nRather than getting a small loan from a lender, a friend or family member may be able to offer help. Or, a creditworthy friend or relative may cosign on a loan, which could increase your chances of qualifying.\nYou could also ask your current creditors to temporarily pause or lower your payments—freeing up money for your other needs. There are different types of debt counseling and financial assistance programs, although availability can depend on your specific situation. END
 TITLE: How to Get a Loan With Bad Credit CONTENT: Get Prequalified for a Loan\n---------------------------\nMany personal loan lenders let you submit a prequalification online to find out if you'll likely qualify for a loan and see your estimated loan offers without hurting your credit.\nBut rather than going lender by lender, you can log in with an Experian account and use the CreditMatchTM tool to submit a prequalification request. Experian will then display available loan offers from multiple partner lenders. You can compare the loan offers to see which is best, but you don't need to decide right away—the offers are good for 30 days. END
 TITLE: Can You Get a Job With Bad Credit? CONTENT: Can Employers Check Your Credit?\n--------------------------------\nEmployers can request access to your credit report, but they must first get your written permission. If you give them the go-ahead, they'll see some details of your credit history, but they will not see your credit score. They also receive a different, limited version of the report than what a lender would see when you apply for a loan or credit card.\nThe employer copy shows your Social Security number for verification purposes, but it does not reveal your birthday or other personal information. The report includes your payment history, account balances, any late payments and credit issues such as bankruptcy or foreclosure, but not your account numbers. The report a lender receives has had any information removed that is prohibited by equal employment opportunity regulations.\nBecause an employer isn't pulling your report to make a lending decision, they won't see in-depth personal or account information. Your account activity, however, is usually enough to indicate a history of money management, which may be relevant to the position for which you've applied.\nAgain, a credit check likely won't affect your chances of getting a job unless you're pursuing a financial or management position or may be privy to sensitive information. If you plan to work with a company's finances, the hiring managers want to make sure you handle money responsibly. They may also factor in your credit history if they're trying to determine whether you can manage large and complex projects. END
 TITLE: Can You Get a Job With Bad Credit? CONTENT: Background Checks and Employees' Rights\n---------------------------------------\nWhether an employer decides to hire you is up to them. But you still have rights, especially when it comes to your credit report. Employers can run a background check as part of the application process, which may include pulling your credit report as well. However, they must abide by the rules set out in the Fair Credit Reporting Act (FCRA), which include a number of protections for consumers.\nEmployers are obligated to:\n1.  Get your permission before running a credit check. A prospective employer must explicitly state that they want to pull your credit as part of a background check, and you have to give the OK before they can access that information. The law requires that they explain the background and credit check requirement in a document separate from their standard job application so that you understand how the information will be used. You must sign a separate form giving the employer permission to access your credit report. If you agree to the check, it's a good idea to ask whether you're consenting to a one-time check or to routine checks throughout your employment, if you get the job. Some states require that employers give you a copy of your report, regardless of whether they hire you.\n2.  Tell you if they don't hire you because of your credit. Employers must inform you if your credit was a factor in your disqualification, and they're legally obligated to share with you the credit report they viewed. They're also required to provide you a summary of your FCRA rights. If you're turned down for a job because of your credit, take the time to review the provided credit report to better understand where you need to improve in order to qualify for future roles.\n3.  Give you an opportunity to dispute the report. You have the right to review your credit report and dispute any inaccuracies that may have influenced the hiring decision. In addition to responding to the company's decision, you'll likely want to file a dispute with the three credit bureaus (Experian, TransUnion and Equifax) as well, so future employers and lenders don't also receive incorrect information about your credit.\nThe extent to which employers can use a credit report in hiring decisions also varies from state to state. The following states prohibit companies from making hiring decisions based solely on credit:\n*   California\n*   Colorado\n*   Connecticut\n*   Delaware (restriction only applies to public employers)\n*   Hawaii\n*   Illinois\n*   Maryland\n*   Nevada\n*   Oregon\n*   Vermont\n*   Washington\nIn New York City and Chicago, employers are barred from using credit checks altogether. To learn more about your rights where you live, you can contact your local department of labor.\nYou don't have to worry about an employer credit check hurting your credit score. These checks are considered soft inquiries, which are not factored into credit score calculations. They're different from a hard inquiry that may appear when you apply for a credit account or loan. Hard inquiries have the potential to bring down your credit score by a few points. END
 TITLE: Can You Get a Job With Bad Credit? CONTENT: Review Your Credit Report for Accuracy\n--------------------------------------\nWhether you're actively looking for a job or are just concerned about how your credit will affect your career path down the road, it's always a good idea to keep an eye on your credit report.\nAnd even though your credit score won't affect your job prospects, it could determine whether you qualify for a mortgage or pay high interest on a new credit card.\nYou're normally entitled to a free copy of your credit report from each of the credit bureaus once a year through AnnualCreditReport.com. Through April 2021, however, you can get a free copy of your reports once a week. Once you receive your reports, it's smart to review all of the information carefully to ensure your personal data and account activities have been accurately reported by your lenders.\nIf something doesn't look right, you can contact the lender directly or file a dispute with the credit bureau that maintains the report. It's important to review each report individually because the data included may vary slightly, and one bureau may show something that the other two don't. If you find an issue across all three, you'll need to contact every bureau to file a dispute and have the problem removed.\nYou can file a dispute claim online, over the phone or through the mail, each bureau has its own dispute process. With Experian, you can create an account online and file a dispute through the Dispute Center. If Experian is unable to verify your identity, you may be asked to provide documentation or additional information before Experian can process the request. Experian typically resolves dispute claims within 30 days.\nIf you're not sure what's in your credit file and you want more insight into your credit health, get your free credit report and score directly through Experian. Experian can also help you monitor your credit and provides instant alerts when new or suspicious activity appears on your accounts.\nMonitoring your credit report empowers you to identify areas for improvement and build strong financial habits. Over time, your credit history can grow stronger as you make on-time bill payments and carefully track your spending to make sure you keep your credit balances low. If you're looking for an extra push, Experian Boost™† can add on-time payments such as your cellphone, utility and streaming services bills to your credit report, which can give your Experian credit scores an instant lift.\nThese tools and more can help you become more financially savvy, and increase your appeal to future employers and lenders. END
 TITLE: Auto Lenders for Bad Credit Borrowers CONTENT: Who Has the Best Auto Loan Rates?\n---------------------------------\nYou can get an auto loan from different types of lenders, and you won't necessarily know which one will offer you the lowest interest rate until after you apply. Each lender has its own way of evaluating applicants, and your loan offer and rates could depend on your creditworthiness, the down payment, the vehicle and repayment term.\nHowever, just as you'll be shopping for the right vehicle, you can shop around to find the best lender. You can often find auto loans from:\n*   **Banks and credit unions**: Banks and credit unions both play a large role in the auto loan financing market. You may be able to get preapproved for an auto loan online, over the phone or at a branch before you go to a dealership to purchase a vehicle.\n*   **Dealer-arranged financing**: Once you're at the dealership, a finance manager can submit your loan application to multiple lenders to see which offers you the best rates. While having the dealership arrange the financing can be convenient, the dealership might take a cut of the loan amount for the service and you could receive a slightly higher interest rate as a result.\n*   **Online lenders**: Some online financing companies offer auto loans. There are also aggregator sites that let you submit one application to get several auto loan offers.\n*   **Captive financing lenders**: Many auto manufacturers also run financing companies that offer loans to customers. Captive financing companies may offer special incentives, such as 0% APR loans, to borrowers with good to excellent credit who are purchasing a new vehicle.\n*   **Buy here, pay here (BHPH) dealerships**: A BHPH dealership directly finances auto loans rather than acting as a middleman between you and a lender. BHPH dealers often work with people who have bad credit and typically charge high interest rates. These dealers may also be more likely to repossess your vehicle when you miss a payment, sometimes even installing devices that they can use to quickly disable or find the vehicle.\nTo help get a sense of whether you're being offered a good rate, you can compare your loan offer to the average interest rate that other borrowers with similar credit received. Experian's State of the Automotive Finance Market for the second quarter (Q2) of 2020 breaks these down based on borrowers' credit score ranges and whether they bought or leased a new or used vehicle.\nSource: Experian's State of the Automotive Finance Market, Q2 of 2020 END
 TITLE: Auto Lenders for Bad Credit Borrowers CONTENT: A Few Auto Loan Options for Bad Credit\n--------------------------------------\nIf you have poor credit, you'll be more limited in choosing a lender to work with. Here are a few options worth considering:\n*   **A local BHPH dealership**: There are big downsides to working with BHPH dealers, but they may be one of your only options if you can't get approved for a loan elsewhere. These dealerships don't necessarily advertise themselves as BHPH. Instead, they may use phrases like \"no credit check\" or \"no credit—no problem\" in their advertising.\n*   **Auto Credit Express**: Auto Credit Express isn't a lender, but it helps people who have no or bad credit get connected with lenders in the U.S. and Canada. You can submit an application online, and your information will be passed on to nearby dealers and lenders who can reach out to you with offers.\n*   **Capital One Auto Finance**: Capital One has an online prequalification application that only takes a few minutes to complete. If you're prequalified, you can take your loan offer to participating dealerships or look for a vehicle online using the Capital One Auto Navigator tool.\n*   **Carvana**: Carvana is an online car seller that inspects its vehicles before sale, delivers vehicles to your door and offers a seven-day money-back guarantee. The company also offers financing, including for buyers with bad credit, that you can prequalify for before browsing their selection.\nWhether you have bad credit or excellent credit, you'll want to compare multiple offers before taking out a loan. END
 TITLE: Auto Lenders for Bad Credit Borrowers CONTENT: Tips for Getting an Auto Loan With Bad Credit\n---------------------------------------------\nIf you can hold off on your purchase, there are also things you can do to help improve your credit or your chances of getting approved and being offered a good rate:\n*   **Get a cosigner.** A creditworthy cosigner can help you qualify for better rates and terms on your car loan. But think carefully before you ask, because the person will also be legally responsible for repaying the loan if you can't. Failing to repay a cosigned loan can take a big toll on credit scores belonging to both the primary borrower and the cosigner.\n*   **Increase your down payment.** If you can swing it, a larger down payment means you won't have to borrow as much, which can make it easier to get approved for a loan.\n*   **Purchase a less expensive vehicle.** Similarly, you can reduce how much you borrow if you choose a less expensive vehicle or opt for a base model rather than fancy upgrades that drive up the cost of the car.\n*   **Improve your credit.** Paying your bills on time can help you improve your credit score, but it won't necessarily be a fast process. One of the few ways to quickly improve your credit is to pay down (or consolidate) credit card debt to lower your credit utilization ratio.\n*   **Sign up for** **Experian Boost™† .** If you haven't done so already, using Experian Boost could be a free and quick way to improve your credit. After signing up and linking an eligible bank account, you can add on-time phone, utility and Netflix® payments to your Experian credit file. The presence of more accounts in good standing on your credit report can help improve your scores, especially if you have a \"thin\" credit file.\nOnce you're ready, shop around for an auto loan to see which lender gives you the best offer, even if you still have bad credit. However, do so strategically.\nApplying for an auto loan can lead to a hard inquiry, which can hurt your credit scores temporarily. But VantageScore® and FICO® credit scores count hard inquiries from auto loan applications as a single inquiry if they happen within a short time period (FICO® provides a 45-day window and VantageScore gives you 14 days). With this in mind, get everything ready and try to submit all your applications within two weeks to find your best loan offer without unduly hurting your credit.  \nCheck Your Credit Before Applying\n---------------------------------\nWhether you're ready to shop for an auto loan or have time to improve your credit before buying your next vehicle, you may also want to check your credit first. Check your credit reports from all three credit bureaus (Experian, TransUnion and Equifax) by visiting AnnualCreditReport.com. You can also get your free FICO® Score☉ 8 from Experian. You'll find out which factors are impacting your score the most and can track your score over time with the included monthly updates. Want to see the version of your credit score commonly used by auto lenders? Sign up for Experian CreditWorksSM Premium to see your FICO® Auto Score. END
 TITLE: Auto Lenders for Bad Credit Borrowers CONTENT: Check Your Credit Before Applying\n---------------------------------\nWhether you're ready to shop for an auto loan or have time to improve your credit before buying your next vehicle, you may also want to check your credit first. Check your credit reports from all three credit bureaus (Experian, TransUnion and Equifax) by visiting AnnualCreditReport.com. You can also get your free FICO® Score☉ 8 from Experian. You'll find out which factors are impacting your score the most and can track your score over time with the included monthly updates. Want to see the version of your credit score commonly used by auto lenders? Sign up for Experian CreditWorksSM Premium to see your FICO® Auto Score. END
 TITLE: Which Store Cards Are Easiest to Get With Bad Credit? CONTENT: Which Store Card Should I Get?\n------------------------------\nDeciding which store card to get depends on more than your credit. You should also consider the different benefits and fees associated with various cards on the market. Also, make sure you understand the difference between closed-loop cards that can only be used with the associated store, or an open-loop card you can use elsewhere.\nIf you have poor credit, it may be easier to get a closed-loop store card. Those with better credit may qualify for an open-loop card, which can be used with any merchant that accepts cards within that network (American Express, Mastercard or Visa, for example). Open-loop cards may provide a higher rewards rate or other perks for purchases made with specific merchants, but you're still able to use the card with a wide variety of merchants.\nWith that in mind, consider where you frequently shop, the available cards and the card's benefits or fees. Fortunately, some of the largest retailers offer the best store cards, and store cards rarely have annual fees.\nIn some cases, you can apply for the open-loop card and, if you don't qualify, you may be automatically considered for a similar closed-loop card. That's the case with the Capital One Walmart Rewards® Mastercard®. Both can be a good option for Walmart regulars, but the open-loop version also offers cash back on travel and dining purchases. END
 TITLE: Which Store Cards Are Easiest to Get With Bad Credit? CONTENT: How a Store Credit Card Can Impact Your Credit\n----------------------------------------------\nJust like a traditional credit card, a store card can have positive or negative impacts on your credit, depending on how you use it.\nInitially, applying for a card can lead to a hard inquiry. Once you're approved and the account is added to your credit reports, it can also lower your average age of your accounts. Both of these factors can hurt your credit a little, if they have any impact at all. Any impact of these changes will decrease over time, especially as you use the new credit card to build your credit.\nIf you make at least your minimum payments on time, those on-time payments get added to your credit history and can improve your scores. Your payment history is the most important factor in some of the most widely used credit scoring systems. Missing just one credit card payment can ding your credit scores for a long time.\nWhile you only need to make minimum payments to have your payment count as on-time, it's often wise to pay off as much of your credit card balance each month. Otherwise, you may have to pay interest on what's left over. Store cards often have high interest rates.\nAlso, keep an eye on the portion of your card's credit limit that you're using. Carrying a high balance can lead to a high credit utilization ratio. This ratio measures how much of your credit limits you're using, and can contribute to credit score harm if it climbs too high.\nIf you wind up using a large portion (such as over 30%) of your credit limit, paying down your balance before your bill comes due can help you maintain your scores. Credit card issuers often report balances to the credit bureaus around the end of a billing cycle, and paying down your balance early can lead to the lower balance being reported and a lower resulting utilization ratio. END
 TITLE: Which Store Cards Are Easiest to Get With Bad Credit? CONTENT: How to Use Your Store Card Responsibly\n--------------------------------------\nHaving a store card can make it tempting to spend even more at your favorite stores, but responsible use can help you save money and be good for your credit. Once you have a store card, here are a few things you should try to incorporate into your financial routine:\n*   **Keep track of the fees.** Store cards may charge a variety of fees, including annual, cash advance and foreign transaction fees. Know which fees your card charges and learn how to avoid them, when possible.\n*   **Track your credit utilization.** Maintaining a low utilization ratio on store cards can be especially difficult when the card has a low credit limit. Make a point of limiting how often you use the card or paying down the balance early to keep your utilization ratio low.\n*   **Pay your balance in full.** To avoid interest, it's best to only charge what you can afford to pay off in full by the bill's due date. If you think you may occasionally carry a balance, make sure you understand how much interest you'll pay.\n*   **Continue comparison shopping.** While store cards may offer rewards on purchases at the associated store, don't assume that means you're always getting a good deal. Buying a product for $100 and earning 5% cash back is still worse than getting the same item for $90 elsewhere. END
 TITLE: Which Store Cards Are Easiest to Get With Bad Credit? CONTENT: Take Additional Steps to Improve Your Credit\n--------------------------------------------\nBecause store cards can be easier to qualify for than general-use credit cards, getting a store card (and using it responsibly) can be a good way to build credit. However, if you're having trouble getting approved for a store card or looking for additional ways to build credit, also look into:\n*   **Secured credit cards**: Secured credit cards help you build credit the same way store and non-store cards do, but can be even easier to qualify for. Like store cards, some secured cards don't have an annual fee but do offer rewards. The catch is that you have to send the card issuer a refundable security deposit, which usually determines your card's credit limit.\n*   **Credit-builder loans**: Having a mix of revolving accounts (such as credit cards) and installment loans can also be good for your credit. As the name suggests, a credit-builder loan is an installment loan that's specifically designed to help borrowers improve their credit. Often, the loan proceeds are kept in a locked account that's unlocked when you finish paying off the loan. As a result, borrowers may improve their credit and build their savings at the same time.\nIf you already have other credit cards or loans, managing them well will also be important to improving your credit. In addition to paying your bills on time and working to pay down credit card balances, this may mean bringing past-due accounts current or working with a credit counselor to get on a debt management plan. END
 TITLE: Which Store Cards Are Easiest to Get With Bad Credit? CONTENT: Check Your Credit Before Applying\n---------------------------------\nWhile your credit isn't the only factor that credit card issuers consider, your credit score can impact your ability to qualify for a new card as well as the interest rate and credit limit you receive. If you don't know where you currently stand, you can check your credit score for free on Experian. You can also use the free Experian Boost™† service to add your cellphone, Netflix® and utility payments to your credit report. These types of bills aren't usually included on your report, but Experian Boost opens up the potential that your history paying for these services can positively impact your score. END
 TITLE: How to “Fix” a Bad Credit Score CONTENT: What Is a Bad Credit Score?\n---------------------------\nOn the FICO® Score☉ 8 scale of 300 to 850, one of the credit scores lenders most frequently use, a bad credit score is one below 670. More specifically, a score between 580 and 669 is considered fair, and one between 300 and 579 is poor. The table below offers more detail on where scores fall.\nVantageScore®, another credit scoring model which was developed by the three main credit bureaus (Experian, TransUnion and Equifax), also uses a scale ranging from 300 to 850. But its definitions associated with each score range vary slightly. A VantageScore from 601 to 660 is considered fair, from 500 to 600 is poor, and from 300 to 499 is very poor. See the table below for a full breakdown.\nThe higher your credit score, the more likely you are to qualify for credit, and at better interest rates and terms. If your score is low, it can be difficult to obtain affordable credit or to get approved for a loan or credit card at all.\nYou can think of maintaining good credit as preventive medicine. You don't know when something might come up, like a breakup that means having to find a new apartment fast, but good credit can help you handle any affliction with less hassle.\nA bad credit score can lead to these roadblocks:\n*   **Potential rejection for loans and lines of credit.** These can include mortgages, car loans, personal loans, private student loans, some federal student loans for parents and graduate students, and credit cards.\n*   **Difficulty getting a rental application approved.** Many landlords conduct credit checks to evaluate your payment history, with an eye to whether you're likely to pay rent on time.\n*   **Required security deposits.** Utilities including gas, electricity and water may require you to make a security deposit when moving into a new home.\n*   **Trouble getting a new cell phone contract.** Many wireless providers check credit before taking you on as a customer, though some carriers offer prepaid plans and other arrangements that don't require a credit check.\n*   **Issues during an employment background check.** Employers may view a limited version of your credit report as part of the background screening process. They may want to confirm information on your application or evaluate how you handle money if you're applying for a financial management role. They won't see your credit score, but activities that lead to a poor score—such as missed payments—will be evident on your credit report.\n*   **Higher insurance premiums in some states.** Car insurance companies, for example, often use information from your credit report, in addition to your driving history, to assess your potential risk of submitting a claim. Your credit history cannot be factored into insurance rates in California, Hawaii or Massachusetts. END
 TITLE: How to “Fix” a Bad Credit Score CONTENT: Credit scores aren't static; they change when the information in your credit report changes. That means you can take control of your financial health now, and make moves that will positively affect your credit scores. Here's how.\n### 1\\. Check Your Free Credit Score\nFirst, check your credit score for free to view the factors that are most affecting it.\nYour credit score is most impacted by the following elements:\n*   Your payment history (35%), including whether you always pay bills on time or have had late or missed payments in the past.\n*   How much total credit you have available and how much of it you're actively using, known as your credit utilization rate (30%).\n*   How long you've been using credit (15%).\n*   The mix of credit types you've had and are currently using (10%).\n*   The number of recent credit accounts you've opened and applications you've made, which are known as hard inquiries (10%).\nIt's also important to check for any errors on your credit report, including inaccurate personal information or accounts fraudulently opened in your name. Especially if it's negatively affecting your score, dispute this information with the credit bureaus. Submitting a dispute does not affect your credit itself. But if any content in your report changes, your score could change too.\n### 2\\. Pay Your Bills on Time\nPayment history is the largest contributor to your credit score, accounting for 35% of your FICO® Score. One of the best ways to ensure you're never late is to set up autopay for recurring bills, such as student loans and car payments. Your bill will come directly from your bank account on the day it's due, meaning you don't have to remember to log in to a payment portal or send a check. Ensure you have enough money in your checking account to cover your payments, though, or you could be subject to fees.\nIf many of your bills are due on the same day of the month, making it more difficult to pay them on time, you may be able to change the payment due dates with your creditors. Keep in mind, though, that it may take a few billing cycles for the change to go into effect. So continue paying as required until they've confirmed the update.\nIt's also important to be upfront with creditors about your ability to pay. Federal student loans, for instance, come with alternative payment plans that can lower the amount you owe each month. But you may not know about them if you're not willing to contact your student loan servicer about your options. Credit card issuers also may be able to reduce your payment or interest rate for a period of time if you're experiencing financial hardship. If you're concerned you're going to miss a payment, contact your creditor before it happens to explore what's possible.\n### 3\\. Pay Down Debt\nAmounts owed make up 30% of your FICO® Score, the next largest share after payment history. The amount of your credit limit you're currently using is expressed at your credit utilization rate, and experts recommend using no more than 30% of your credit limit at any point.\nIdeally, you'll pay off your credit card bill in full at the end of every month. But if you can't, and you're currently carrying a balance, make a plan to pause using your cards and pay down credit card debt. You may want to send extra money to the highest-interest card first, known as the debt avalanche method, which will save the most money in interest. Or you can pay off small balances using the debt snowball method, which may motivate you more.\nA balance transfer credit card may be a better option if you need more time to get your balances down. If your credit score qualifies you for one, a balance transfer card provides an interest-free period that lets you pay off your balances without accruing as many charges over time.\nTo make the most of the card, though, come up with a plan that gets you debt-free within the interest-free time frame. Otherwise, you'll be subject to interest charges at the end of that period, potentially negating some of your savings.\n### 4\\. Avoid New Hard Inquiries\nIf you're focused on increasing your score, you may want to delay applying for new credit in the meantime. A hard inquiry happens when a lender checks your credit to evaluate you for a financial product. It will appear on your credit report and may affect your credit score. That's because lenders could consider you a greater credit risk if you're attempting to borrow money from many different sources. Applications for new credit account for 10% of your FICO® Score.\nSoft inquiries don't affect your credit; they occur when you check your own credit score or when a lender or credit card issuer checks your credit to preapprove you for a product. It's also likely you won't see a major effect on your score if you're shopping for a single auto loan or mortgage and apply with multiple lenders in a brief time period. Scoring models distinguish this process from, say, opening lots of credit cards at one time, and typically won't penalize your score the same way.\n### 5\\. Boost Your Credit\nOne way to strengthen credit using your existing financial history is through Experian Boost™† . When you sign up for free, Experian searches your bank account data for utility, phone and cable payments, and you can choose which accounts to add to your credit file. Once the accounts are added, a new credit score is instantly generated. Those who have little or poor credit could see an increase to their FICO® Score thanks to the addition of new positive payment history.\n### 6\\. Get Help Building Credit\nIf you're having trouble getting approved for a credit card or loan on your own, you can build credit history with the help of others or with a secured account. Try these strategies:\n*   Become an authorized user on someone else's account.\n*   Work with a cosigner who has good credit. When you have a cosigner for a loan or credit card, the lender also considers them jointly responsible for the debt.\n*   Open a secured account. With a secured credit card account, you place cash in an account and the card issuer allows you to borrow up to a certain percentage of the money. END
 TITLE: How to “Fix” a Bad Credit Score CONTENT: How to Maintain a Good Credit Score\n-----------------------------------\nOnce you've done the hard work to fix a bad credit score, keeping up the momentum is the next step. That means diligently paying all bills on time, maintaining low balances on credit cards and only seeking out new credit when necessary.\nLength of credit history accounts for 15% of a FICO® Score, so you may also want to keep old accounts open to maintain a long average credit history. That could mean putting a small charge on your oldest card occasionally, and paying it off right away. If a card has a high annual fee and you're no longer using it, weigh the potential tradeoffs of a shorter credit history with the money you could save.\nCredit mix, or the range of credit types you have in your name, makes up 10% of a FICO® Score. You don't need to take out a new loan merely to diversify your credit mix. But dependably managing a credit card is one of the most effective ways to maintain a good credit score. So if you haven't opened your own credit card in the past, consider applying for a secured credit card, which will require a deposit that typically also becomes your credit limit. Making small charges and paying them off each month can help improve your score, and may make you eligible for a traditional, unsecured card down the line.\nIf you take these steps and still find yourself struggling, getting help may allow you to get back on track. An approved credit counseling agency can help you create a plan to better manage your finances and pay down debt. You can find a state-by-state list of approved credit counseling agencies from the U.S. Department of Justice to make sure you're working with a legitimate agency.\nDebt consolidation may be another option if you're struggling with a lot of credit card debt. A debt consolidation loan allows you to roll multiple high interest debts into a single payment, usually at a lower interest rate and giving you just one payment to keep track of.\nBe wary of any organization that promises to repair your credit with little or no time or effort, or that claims it can repair your credit for a fee. Improving your credit status takes time. Ultimately, there's nothing a credit repair company does that you can't do yourself with time and effort. END
 TITLE: How to “Fix” a Bad Credit Score CONTENT: The Bottom Line\n---------------\nA bad credit score doesn't have to weigh you down. There are concrete actions you can take today and in the future to improve it, and to keep your score as high as possible.\nKnowing where you stand, and making it a point not to avoid the reality of your credit status, are perhaps the most important ongoing tactics in the drive to improve credit. Check your credit report and score regularly using a free online service like the one available from Experian, and feel empowered knowing you can master your own financial well-being. END
 TITLE: Why No Credit Is Better Than Bad Credit CONTENT: What's the Difference Between No Credit and Bad Credit?\n-------------------------------------------------------\nHaving no credit means you've never taken out a loan or credit card and thus don't have a consumer credit report. When you borrow money from a financial institution or get a credit card, your credit history will begin. The company will provide your account activity to at least one of the three major credit reporting agencies (Experian, TransUnion and Equifax), which will then create a credit report in your name.\nThe information on your credit report will depend on what type of credit you have. Loans will show the original amount you borrowed, while credit card accounts will show the available limit and balance. For both loans and credit cards, you'll see the date you applied, the date credit was granted, and your monthly payment pattern. A credit scoring company such as FICO will then take the data from your credit report, put it into a mathematical model designed to predict credit risk, and transform it into a numerical score, typically from 300 to 850.\nWithout a traceable credit history or credit score, a lender has no way of knowing what kind of credit risk you present. While you may not have proven yourself to be irresponsible, you haven't demonstrated that you're responsible either. You're an unknown quantity to lenders.\nBad credit is the opposite. It's a verifiable indication that something went wrong in your credit history. It could be evidence that you paid your bills late or acquired a large amount of debt relative to the amount available. Maybe you defaulted on accounts and are experiencing collection activity, or have filed for bankruptcy. Negative information on your credit report will be calculated into your credit scores, causing them to drop.\nTo turn no credit into great credit, you'll just need to populate your credit report with positive information. To recover from bad credit, however, you'll need to make positive changes that can help you improve your credit over time. END
 TITLE: Why No Credit Is Better Than Bad Credit CONTENT: How to Build Credit When You Have None\n--------------------------------------\nObtaining a credit product, such as a loan or credit card, in your name is the swiftest way to begin a credit history. As an unknown risk, you can inspire confidence by offering collateral. Secured credit cards and credit-builder loans are ideal for people who are credit mysteries and can put down a deposit to begin establishing credit.\nWith a secured credit card, you provide a cash deposit to the issuer, then receive a credit card with a limit that typically matches your deposit. The issuer can claim the funds held in deposit if you don't pay your balance. As long as you manage the card well by using it often and paying the balance in full by the due date every month, you'll add positive data to your credit report.\nCredit-builder loans are also secured by a cash deposit. You repay the loan in regular installments, which the lender reports to the credit reporting agencies. After the loan is paid in full, you will get your deposit back and your credit report will indicate a many months' worth of timely payments.\nNot everyone can afford to put down a deposit for a secured credit card or credit-builder loan. That doesn't mean you're out of luck, though. Here are other ways to build credit:\n*   **Become an authorized user.** If you know someone who has a good credit history and will add you to their credit card as an authorized user, that account will show up on your credit report. As long as the primary account holder keeps the balance low and always pays on time, this can help jump-start your credit history. Because the account is not in your name, the primary user is responsible for all payments.\n*   **Find a cosigner.** Perhaps a person with a positive credit rating will open a credit card or loan with you. Because you would share ownership, you would be equally liable for the account. If you renege, the creditor can pursue one or both of you for payment.\n*   **Apply for an unsecured credit card.** Some credit card issuers are willing to grant credit newbies a small credit line without requiring a security deposit. If you manage it well, the issuer may increase the credit line.\n*   **Obtain a student loan.** You don't need any kind of credit history to qualify for federal student loans. If you're in college and need to borrow for tuition and other essential expenses, a student loan can be beneficial. The loan will appear on your credit report, and even when you're not in repayment, it will help your credit history and credit mix. Your credit may escalate more when you start to send payments and lower the loan balance.\n*   **Consider a nonprofit lender.** If your income is low and other alternatives don't pan out, you may be able to get financing and start your credit history by participating in a nonprofit lending circle. Organizations such as Mission Asset Fund offer low-rate loans and report your borrowing and repaying activity to the credit reporting agencies. END
 TITLE: Why No Credit Is Better Than Bad Credit CONTENT: How to Improve Your Bad Credit\n------------------------------\nTo overcome past credit problems, you'll need to know what exactly you must correct. Obtain a copy of your credit report and read it carefully. Identify areas of concern, then tackle any problems. You can't remove accurate and timely information from your credit report, but you can change the future.\n*   **Pay all bills on time.** A slew of missed payments will definitely drag down your credit. From this moment forward, send all payments on time. If you stopped using credit cards and don't owe any money, start charging again in small increments. Begin charging an affordable expense, such as a monthly subscription, and pay it off each month. The more on-time payments you have on your credit report, the better, since payment history is the most important factor in your credit score calculation.\n*   **Keep balances low.** Your credit utilization rate, or how much available credit you're using, is another important factor affecting your credit scores. Keep credit card debt well below 30% of your credit limit. Eventually consider adding more credit cards to your portfolio and keep those lines open while using the cards responsibly. Doing so will help keep your utilization low and may cause your credit scores to escalate.\n*   **Pay off any unsettled collection accounts.** You can't remove evidence that a debt went into collections, but you can pay it off. A satisfied debt always looks better than one that is outstanding, so delete it so it shows as paid in full.\nIf you filed for bankruptcy, you will have to wait it out. A Chapter 7 will appear on your report for 10 years, and a Chapter 13 will stay for seven. During this time, add positive activity to your reports using the strategies above to offset the damage. The same rules for establishing good credit apply: Get a healthy mix of loans and credit cards, use them frequently, pay on time and maintain low balances.\nWhether you're establishing credit or dealing with damaged credit, take advantage of an opportunity to add your utility and cellphone accounts to your credit reports with Experian Boost™† . The free service offers an easy way to make sure that on-time payments work in your favor. Combined with other positive credit habits, Experian Boost can help you establish credit or improve bad credit. END
 TITLE: What Is Bitcoin and How Does It Work? CONTENT: Bitcoin is a decentralized and completely digital currency. Unlike fiat currencies, such as the U.S. dollar, euro or British pound, governments don't create or back Bitcoins.\nBitcoin and other cryptocurrencies—there are many—are powered by \"blockchain\" technology. The Bitcoin blockchain is a decentralized public ledger, which might sound like technobabble, but isn't difficult to understand as a concept.\nThe Bitcoin blockchain is a public ledger (or database) that's created and managed by a large network of computers rather than a single entity or central bank—that's what makes it decentralized.\nNew information, such as recent transactions, are grouped together to form a block. The block is then added (or chained) to the existing database. Once new information is added, it can't be edited or deleted, and anyone can review the Bitcoin blockchain database. The result is a permanent record of Bitcoin transactions that's available for public review.\nFor example, if you send Bitcoins to someone else, an uneditable record of the transaction is added to the ledger, which is synced on tens of thousands of computers around the world.\nBitcoin also allows for transactions that remain anonymous to a certain extent. While there's a public record of the transaction from person A to person B, there isn't any identifying information about who person A and B are. However, anonymity goes out the window if you publish your Bitcoin address (the address you use to receive the currency) publicly. With your Bitcoin address, someone can see your transactions and even view the balance associated with it.\nAll of this complex math requires a lot of computational power, which is where Bitcoin miners come in. Miners allow use of their computers to process transactions and, in return, they receive Bitcoins as payment. Anyone can set their computer up to mine Bitcoin, although the cost of electricity to power your computer may be more than you earn in the currency. END
 TITLE: What Is Bitcoin and How Does It Work? CONTENT: Should I Buy Bitcoin?\n---------------------\nIn addition to earning Bitcoin from mining, you can buy and sell it online. But before you do, consider why you want to own it and the risk involved.\nYou can use Bitcoin to send a payment to someone else, and some companies accept it as a form of payment. However, Bitcoin's volatile price doesn't make it an ideal currency for day-to-day transactions. After all, you don't want to spend $1,000 worth of Bitcoin on a new computer to find out the same amount of Bitcoin is worth $3,000 a few weeks later.\nInstead, many people view the cryptocurrency as a store of value, similar to gold. While you can't pay for most purchases with gold, you may want to buy gold because you think it will be worth more later.\nPeople have made money buying Bitcoin as an investment. However, as with other investments, there are risks, and people have also lost lots of money selling their Bitcoins for less than they bought them for. Others lost their entire investment when the platform they used to purchase their Bitcoin was hacked, and unfortunately there was no way to track down the hackers or get their investment back. Keep the high level of risk in mind as you consider whether to buy. END
 TITLE: What Is Bitcoin and How Does It Work? CONTENT: How to Buy Bitcoin\n------------------\nIf you want to purchase Bitcoin, the easiest way to do it is through an online exchange. Some popular options include Binance, Coinbase, Gemini and Kraken.\nYou can buy Bitcoin on these platforms using different methods, such as a credit card, bank account or by trading other cryptocurrencies. There will likely be a fee for each transaction, and the price of Bitcoin may vary slightly from one platform to another.\nYou'll also need a digital wallet when you buy Bitcoin. Your Bitcoins aren't technically stored in your wallet—they're part of the public Bitcoin blockchain. However, your digital wallet is where you keep your public and private key.\nThe public key can be shared with others and lets them send you Bitcoin. Your private key should never be shared with anyone, because that's what lets you send Bitcoin to others. It's a bit like a password to your online bank account. Other people can send you money if you give them your bank account number, but you're the only one who can log into your bank account to access the funds.\nMany public platforms let you purchase, sell and transfer Bitcoin, and create a digital wallet for you on the platform. Platforms generally simplify the process, and allow you to manage your cryptocurrency accounts with a user-friendly interface like you would many other online accounts. The safest way to store Bitcoin, however, is to keep your private key hidden somewhere, such as a thumb drive or written down on a piece of paper. END
 TITLE: What Is Bitcoin and How Does It Work? CONTENT: What Is the Future of Bitcoin?\n------------------------------\nThe blockchain technology that's the backbone of the Bitcoin network has many practical uses and may be adopted by different businesses in the future. Cryptocurrencies, in general, may also become more popular in the future. However, it's impossible to say if Bitcoin will remain the most popular cryptocurrency or if something else will take its place. END
 TITLE: What Is Bitcoin and How Does It Work? CONTENT: Alternatives Ways to Invest\n---------------------------\nIf you want to begin investing with Bitcoin, you may want to limit your risk by starting small and putting just a small share of your overall portfolio in cryptocurrencies. Look to diversify your portfolio with additional investments, such as:\n*   **Stocks**: When you buy stock, you're purchasing partial ownership in a company. The stock's value may increase as the value of the company increases, and some companies share part of their income with stockholders as dividends. However, stocks can also be a risky investment, and you could lose all your money if a company goes bankrupt.\n*   **Bonds**: You can purchase corporate and government bonds, which are essentially loans to a company or government organization. As the lender, you can earn interest on the money you lend and receive the principal loan amount back at the end of the loan's term.\n*   **Mutual funds and exchange-traded funds (ETFs)**: If you want to quickly invest in many things with a single purchase, you can buy shares in a mutual fund or ETF. These funds can be made up of multiple stocks and bonds, or mirror the price of a collection of stocks or bonds.\nThere are many easy ways to start investing if you're brand new. You can open a brokerage account online or using a mobile app, fund the account with a bank transfer and then purchase investments. However, if you're investing for retirement, there may be tax advantages to using an individual retirement account or an employer-sponsored retirement plan, such as a 401(k). END
 TITLE: What Is Bitcoin and How Does It Work? CONTENT: Will Buying Bitcoin Impact Your Credit?\n---------------------------------------\nThe money you keep in checking, savings or investment accounts doesn't impact your credit history or scores. Your income and overall net worth also doesn't factor into your credit. As a result, purchasing Bitcoin won't affect your credit. However, if you buy a lot of Bitcoin hoping to make a quick buck and then its value drops, you might find yourself unable to pay other bills—and missing those payments could hurt your credit. You might also run into credit trouble if purchasing Bitcoin causes you to run up a high credit card balance that increases your credit utilization, and results in missed payments if you can't afford to pay it off. END
 TITLE: Should You Hire a Bankruptcy Attorney? CONTENT: What Does a Bankruptcy Attorney Do?\n-----------------------------------\nA bankruptcy attorney can help you size up your financial circumstances, including the types and amounts of the debts that are overwhelming you, and advise you about whether it's wise to pursue bankruptcy at all. If bankruptcy is your best option, your attorney can help you decide if you should file it under Chapter 7 or Chapter 13 of the federal bankruptcy law. A Chapter 7 bankruptcy, also known as a liquidation bankruptcy, erases most debts but requires forfeiture of all but a small amount of assets. A Chapter 13 bankruptcy establishes a plan for making partial repayment to your creditors, and can allow you to keep certain assets, such as a home or car.\nOnce you decide which bankruptcy procedure to pursue, your attorney will guide you through the steps involved, including:\n*   Submitting a list of creditors to the court and scheduling court appearances.\n*   Directing you on where and how to complete a required pre-bankruptcy credit counseling session and a post-bankruptcy debt management course.\n*   Submitting required fees when filing documents with the court.\nIt's possible for you to do some or all of these things yourself, but these steps will likely go more smoothly if they're done on your behalf by an attorney familiar with deadlines, procedures and other formalities of the court. END
 TITLE: Should You Hire a Bankruptcy Attorney? CONTENT: How to Find a Bankruptcy Attorney\n---------------------------------\nUnless you're close with someone who's had a recent bankruptcy, you may not feel comfortable asking friends to refer you to a good bankruptcy attorney. Fortunately, there are other resources available:\n*   Enter \"bankruptcy lawyer\" and your ZIP code in the Better Business Bureau's searchable directory, and you'll receive a list of attorneys, with ratings provided by their clients.\n*   The National Association of Consumer Bankruptcy Attorneys is a trade organization that provides training and advocacy for bankruptcy attorneys. It provides a searchable database of its members and advice on how to choose the best attorney for your needs.\n*   Your state bar association can provide referrals to bankruptcy attorneys practicing near your home. END
 TITLE: Should You Hire a Bankruptcy Attorney? CONTENT: How Bankruptcy Affects your Credit\n----------------------------------\nA bankruptcy is a major negative event in your credit history, and it typically has a deep, lasting negative effect on your credit scores and your ability to get new credit. A Chapter 7 bankruptcy stays on your credit report for 10 years from the date you file bankruptcy, while a Chapter 13 bankruptcy remains for seven years after the filing date.\nA bankruptcy will have a negative effect on your credit scores as long as it appears on your credit report, but the severity of its impact on your scores will diminish over time. Some lenders refuse to consider applicants with bankruptcies on their credit reports, while others will consider applicants several years after a bankruptcy has been completed.\nThe credit consequences of bankruptcy may be severe, but they are not permanent.\nWith time and persistence, it's possible to rebuild your credit after bankruptcy and once again enjoy the ability to borrow and repay money responsibly. If you have a bankruptcy in your recent past, it's a good idea to keep tabs of your credit scores and track your recovery progress. END
 TITLE: What Is the Difference Between Chapter 7 and Chapter 13 Bankruptcy? CONTENT: How Does Bankruptcy Work?\n-------------------------\nBankruptcy is a method to eliminate or at least reduce your debt when bills pile up beyond your ability to repay them. It should be viewed as a last resort to be considered only when all other potential courses of action to get back on track have been exhausted.\nIndividuals filing for bankruptcy mostly use either Chapter 7 or Chapter 13. The biggest difference between the two is what happens to your property:\n*   **Chapter 7**, which is known as liquidation bankruptcy, involves selling some or all of your property to pay off your debts. This is often the choice if you don't own a home and have a limited income.\n*   **Chapter 13**, also known as a reorganization bankruptcy, gives you the chance to keep your property (including secured assets like your home and car) if you successfully complete a court-mandated repayment plan that lasts between three and five years.\nDepending on where you live and your marital status, some of your property may be exempt from being sold when you file Chapter 7 because of state-specific and federal exemptions. With exemptions, whether they be your home equity, retirement accounts or even personal possessions such as jewelry, you receive the allowed exemption amounts, and the rest of the proceeds will be used to pay off debts. You can read more about potential exemptions, and check out this chart for a quick rundown on the two types:\nChapter 7\nChapter 13\n**Type of bankruptcy**\nLiquidation\nReorganization\n**Who can file?**\nIndividuals and business entities\nIndividuals only (including sole proprietors)\n**Eligibility restrictions**\nDisposable income must be low enough to pass the Chapter 7 means test\nCannot have more than $419,275 of unsecured debt or $1,257,850 of secured debt (as of 2021)\n**How long does it take to receive a discharge?**\nTypically three to five months\nUpon completion of all plan payments (usually three to five years)\n**What happens to property in bankruptcy?**\nTrustee can sell all nonexempt property to pay creditors\nDebtors keep all property but must pay unsecured creditors an amount equal to value of nonexempt assets\n**Allows removing unsecured junior liens from real property through lien stripping?**\nNo\nYes (if requirements are satisfied)\n**Allows reducing the principal loan balance on secured debts through a loan cramdown?**\nNo\nYes (if requirements are satisfied)\n**Benefits**\nAllows debtors to quickly discharge most debts and get a fresh start\nAllows debtors to keep their property and catch up on missed mortgage, car and nondischargeable priority debt payments\n**Drawbacks**\nTrustee can sell nonexempt property; does not provide a way to catch up on missed payments to avoid foreclosure or repossession\nMust make monthly payments to the trustee for three to five years; may have to pay back a portion of general unsecured debts END
 TITLE: What Is the Difference Between Chapter 7 and Chapter 13 Bankruptcy? CONTENT: What Are the Eligibility Rules for Bankruptcy?\n----------------------------------------------\nThe main difference in eligibility comes down to your income. Chapter 7 requires you to have either a below-median level income for your state or to pass a means test to determine whether you can reasonably be expected to repay your debts with your disposable income (that's the income you have left over after paying for the essentials).\nIf you don't qualify for Chapter 7, you'll have to look at Chapter 13 bankruptcy instead. For this route, you'd have a regular income, unsecured debts under $419,275 and secured debts that total no more than $1,257,850 (as of 2021). END
 TITLE: What Is the Difference Between Chapter 7 and Chapter 13 Bankruptcy? CONTENT: Will I Need to Repay All of My Debts in Chapter 7 and Chapter 13 Bankruptcy?\n----------------------------------------------------------------------------\nThis depends on each type of debt involved. With both filings, your unsecured debts (ones not backed by collateral, like medical and credit card bills) are discharged—meaning you won't have to pay them.\nWith Chapter 7, those types of debts are wiped out with your filing's court approval, which can take a few months. Under Chapter 13, you need to continue making payments on those balances throughout your court-instructed repayment plan; afterwards, the unsecured debts may be discharged.\nHowever, certain debts might not be wiped out by either Chapter 7 or Chapter 13 bankruptcy, including:\n*   Mortgages\n*   Tax debts or government fees\n*   Auto loans\n*   Child support or alimony\n*   Student loans\nSome of those secured loans may be reduced with Chapter 13 bankruptcy to make repayment easier with a \"cramdown,\" in which your court-approved repayment plan decreases the balance you owe. For instance, you could secure a reduced balance on your car loan based on the vehicle's depreciated value. With Chapter 7, there's a potential to discharge secured debt like car loans, if you give up the property involved (in this case, the car). END
 TITLE: What Is the Difference Between Chapter 7 and Chapter 13 Bankruptcy? CONTENT: How Does Filing Bankruptcy Impact Credit?\n-----------------------------------------\nYour credit may not be in tip-top shape by the time you consider filing for bankruptcy, since high balances and missed payments are the top factors affecting your credit score. Still, the presence of a bankruptcy on your credit report will severely impact your credit scores and creditworthiness the entire time it is on your report. That impact will lessen as time passes, however. Chapter 7 bankruptcy remains on your report for up to 10 years, and Chapter 13 stays there for up to seven years.\nIt's not an ideal credit situation, of course, but you can use the time to manage your debts wisely and make consistent on-time payments. Like with any damage to your creditworthiness, it's possible to rebuild your credit with some focus and patience—along with using the debt relief provided by the bankruptcy to get back on track financially. END
 TITLE: What Is the Difference Between Chapter 7 and Chapter 13 Bankruptcy? CONTENT: How Do I Apply for Bankruptcy?\n------------------------------\nThe unfortunate reality of bankruptcy is that it will cost some money—more if you hire legal help, which you probably should (more on that below). All filings have to go through U.S. bankruptcy courts, where the cost to file is $335 for Chapter 7 and $310 for Chapter 13. However, you can ask the court to either waive your fee or let you pay with monthly installments. You'll also have to take debtor education courses if you file on your own.\nAnd that's just the beginning. There's a list of documents you'll need to take care of, as well as the specific repayment proposal you need to submit for Chapter 13. That proposal gets reviewed by a court-appointed trustee, who contacts your creditors before approving your submission. Overall, neither filing is an easy process to handle on your own, and even minor mistakes on your end could be a setback for your case.\nSo, whether you file for Chapter 7 or Chapter 13 bankruptcy, it's typically a good idea to hire a lawyer to help you petition. A bankruptcy attorney's price depends on the nature and complexity of your filing, with Chapter 13 filings on the pricier end, but the price tag doesn't necessarily mean a lawyer is out of the question for you. Discuss payment plans with potential attorneys, check out local pro-bono (free) lawyers and legal aid offices, or use an online tool like Upsolve to cover your bases when it comes to bankruptcy. END
 TITLE: Survey: Companies Fear Data Breaches, Invest in Security CONTENT: Companies Are Spending More to Protect Against Data Breaches\n------------------------------------------------------------\nAs the world experiences a surge in data breaches—many of which are large in scale and well-documented in the media—companies are more acutely aware of the risks breaches pose when they result in the loss or theft of internal or customer data. In response, many have stepped up their protections: 68% of companies say they've invested more in security technology to help detect and protect against such attacks.\nWhen it comes to company precautions, the most common tactic—reported by 73% of respondents—was to conduct regular reviews of physical security measures and access to confidential information. Companies can devise rules that restrict access to areas where confidential information is stored and access to the data itself, an essential step in defending it from prying eyes.\nThe second most common measure companies take—with 69% of respondents reporting so—is to conduct background checks on new full-time employees and vendors. This is another precautionary step that involves simple technology companies can implement without expert help to better understand who is handling confidential data.\nFinally, as the third most common measure, 57% of respondents reported that they regularly conducted third-party cyber security assessments in 2019. This practice saw the largest increase in popularity—a 9 percentage point rise—of all precautionary measures taken in the past two years. This shows that in addition to devising new internal practices, companies are increasingly seeking outside help to beef up their cyber security, solidifying the importance of trained specialists when it comes to protecting cyber integrity. END
 TITLE: Survey: Companies Fear Data Breaches, Invest in Security CONTENT: Despite Investments Made, Data Breaches Affecting More Organizations\n--------------------------------------------------------------------\nWhile most companies are spending more money to protect themselves against cyberattacks, the number of organizations that have suffered a data breach that involved the loss or theft of 1,000 or more records has spiked, with 63% reporting such a breach in 2019—up from 56% of respondents just two years ago.\nIn 2017 there were more than 1,600 data breaches just in the U.S., according to the Identity Theft Resource Center. Though the number of data breaches actually dipped in 2018, more personal records are being exposed than ever before. In 2018, over 446 million personal records were exposed, up from 197 million in 2017.\nSo, whether companies are worried about the frequency of data breaches or the magnitude, at least in the U.S. those concerns are seemingly validated considering documented breaches in the past few years. END
 TITLE: Survey: Companies Fear Data Breaches, Invest in Security CONTENT: Companies Are Increasingly Worried About Data Breaches\n------------------------------------------------------\nSince 2017, despite increased efforts to protect themselves, companies seem to be losing faith in their ability to successfully fend off a data breach or cyberattack. In the past two years, the share of those surveyed who said they were confident in their ability to protect their companies from spear-phishing attacks (fraudulent email campaigns used to trick people into handing over information) declined from 31% to 23%. When asked about their confidence in dealing with ransomware, 20% reported being confident in 2019, down from 21% two years ago.\nIn addition to spending more to protect against breaches, about half—49%—of those surveyed reported having some type of cyber security insurance. These insurance policies help protect against loss from both internal and external cyber crimes, according to the organizations. Over time, more companies plan to add this type of insurance, as 58% of respondents at uninsured companies reported they would begin carrying these types of protections in the next two years. END
 TITLE: Survey: Companies Fear Data Breaches, Invest in Security CONTENT: Consumers Should Continue to Be Aware of Protecting Their Own Data\n------------------------------------------------------------------\nWhile many companies are working diligently to protect the private information they hold, it's important that consumers also take the proper steps to limit their exposure to the impacts of a data breach or cyber-attack.\n\"Consumers should be very diligent, especially right now, in protecting themselves from identity theft,\" says Michael Bruemmer, vice president of data breach resolution at Experian.\n\"Cybercriminals are amping up their attempts on companies to take advantage of the current climate,\" Bruemmer continues. \"There are many coronavirus-related scams popping up targeting consumers, most often through spear-phishing emails. Don't click on any links sent via email or text, change your account passwords regularly and only shop on credible websites.\"\nHere are two things you can do to help protect your information against data breaches:\n1.  Limit the number of companies you share your personal information with. Be vigilant when sharing your email, name, phone number or password. Your personal information is valuable, so consider only entering it for services you really need or want. This will help limit your exposure should a company fall victim to a data breach.\n2.  Use unique passwords for all your accounts and services. When you use the same password for multiple accounts, it's like having a master key that allows anyone that gets ahold of it to access other parts of your life. Imagine your personal information—including password—for one account was stolen in a data breach. If you've used that same password elsewhere, the fraudsters can easily use it to access your other accounts. If a unique password is exposed, however, it won't give fraudsters the opportunity to attack you in other places.\nIf you've already had information stolen in a data breach, take these important steps:\n1.  Stay alert. If your data has been compromised, you'll want to start paying close attention to areas of your life that could be impacted by the loss. Pay attention to your mail, emails and phone calls for any evidence that your information is being used fraudulently.\n2.  Monitor your credit reports. If someone gets their hands on your Social Security number, you'll want to make sure that they don't open any new accounts in your name. Frequently reviewing your credit reports will help you know if any new accounts appear that you don't recognize. You can get a free copy of your credit report and view your credit score through Experian.\n3.  Freeze or lock your credit file. To be extra safe, in addition to monitoring your credit reports for new accounts, you can freeze or lock your credit file with one or all of the three main credit bureaus. You can learn more about Experian's CreditLock here and more about freezing your credit here. END
 TITLE: Is It Better to Pay Off Debt or Settle It? CONTENT: Is Paying Off or Settling Debt Better for Your Credit?\n------------------------------------------------------\nIn general, paying off the total amount of debt you owe is a better option for your credit. An account that appears as \"paid in full\" on your credit report shows potential lenders that you have fulfilled your obligations as agreed, and that you paid the creditor the full amount due.\nAccounts remain on your credit report for up to 10 years when they're closed in good standing (meaning no late payments). Positive payment history on those accounts—the most important factor in your credit score—will continue to strengthen your score during that time. The growing length of your credit history can also have a positive impact on your score.\nYou can pay less than the full amount owed if you negotiate with a lender to settle the debt. Debt settlement companies offer the option to settle debt on your behalf for a fee, but there are many drawbacks to this process, including shattered credit and high fees. Instead, negotiating with lenders on your own—or considering a debt management plan organized through a nonprofit credit counseling agency—may be better options.\nNo matter how you settle debt, anytime you don't repay the full amount owed, it will have a negative effect on credit scores. The \"settled\" status will remain on your credit report for seven years from the original delinquency date of the account. If the account was never paid late, the \"settled\" notation will stay on your report for seven years from the date the debt was settled.\nIt's important to know that if the account was in collections, and you either paid it off or settled it, your credit score won't necessarily improve right away. The collection account will stay on your credit report for seven years, and older FICO® Score☉ models factor this notation into your score even if the balance on the account is zero. END
 TITLE: Is It Better to Pay Off Debt or Settle It? CONTENT: How to Start Paying Off Debt\n----------------------------\nYou have many options to pay off debt that isn't already in collections. Start out by getting clear on how much you owe and how much you're paying in interest on each debt. If you have the money to pay extra on your accounts to reduce their balances, try paying down the debts with the highest interest rates first (using the debt avalanche method); you can also pay off the smallest debts first (using the debt snowball method) if that will help keep you motivated to pay off your debts.\nIf you'd prefer to simplify your debts and potentially reduce their interest rates, look into a debt consolidation loan, which lets you combine multiple accounts into one and make a single set monthly payment to pay them off. A balance transfer credit card may also be an option if you qualify. These cards allow you to consolidate credit card debt with a single card and pay it off at 0% interest for a period of time.\nDebt already in collections requires specific payoff strategies. First, contact the lender and explore your options for making a lump-sum payment to settle the debt or creating a payment plan to pay off the debt. If the creditor has sued you to get back the amount owed, it's a wise choice to hire a lawyer to help. A nonprofit credit counselor can also give you advice on the best way to handle a debt in collections, and on which payoff strategies make the most sense for your finances. END
 TITLE: Is It Better to Pay Off Debt or Settle It? CONTENT: How to Get Extra Help With Debt\n-------------------------------\nDebt payoff can seem overwhelming and complicated, but there are many resources that can guide you. A good place to start is, again, a nonprofit credit counseling agency, where you can receive a free initial consultation and get help with budgeting and debt reduction strategies. If you're not only dealing with debt collectors but you're also involved in a lawsuit related to your debt, a lawyer experienced with consumer debt issues is the best person to work with; you can find free local legal assistance through the Legal Services Corporation's search tool.\nIf you're feeling burdened by debt and you're unable to pay for basic needs, call 211 to connect with services in your area that may offer rent, mortgage, utility or medical bill assistance. Other types of financial assistance may be available from the federal or state government, and you can take a look at the programs you qualify for at Benefits.gov.\nDon't forget to engage with organizations that work with specific populations you might be a part of, such as Military OneSource, which serves military families and offers financial and legal resources. END
 TITLE: Is It Better to Pay Off Debt or Settle It? CONTENT: Understanding Your Debt Payoff Options\n--------------------------------------\nWhile it's best to pay off debt that's in collections rather than settling it, both options are far more beneficial than ignoring the debt completely. You should give yourself credit for reaching the point at which you're ready to face your debt and get rid of it. While it may take time and effort, the promise of being debt-free is a meaningful, and realistic, goal to pursue. END
 TITLE: Chase Refreshes Sapphire Preferred and Reserve Credit Cards CONTENT: New Chase Sapphire Preferred® Card Benefits\n-------------------------------------------\nNew and existing Chase Sapphire Preferred® Card users can benefit from higher earning potential on dining and select travel purchases, plus the addition of online grocery and streaming service categories. Here's a look at the card's new rewards details.\n**New categories:**\n*   5 points per dollar spent on all travel purchased through Chase Ultimate Rewards\n*   3 points per dollar spent on select streaming services\n*   3 points per dollar spent on online grocery purchases, excluding Target, Walmart and wholesale clubs\n**Existing categories:**\n*   3 points per dollar spent on dining, including eligible delivery services, takeout and dining out (up from 2 points per dollar)\n*   2 points per dollar spent on travel outside of Chase Ultimate Rewards (unchanged)\nIf those updates alone aren't intriguing enough, there are two other additions that can further help you offset the card's $95 annual fee.\nYou can earn an annual $50 credit on hotel stays that you purchase through the Chase Ultimate Rewards portal. This is the only benefit that existing cardholders will have to wait to use until after their next account anniversary. Meanwhile, new cardholders can instantly use the credit.\nAnother noteworthy feature is the 10% anniversary point bonus. Every account anniversary, you will earn bonus points equal to 10% of total purchases made the previous year. So if you spent $25,000 in a year, you'd earn an additional 2,500 points. This is a helpful way to automatically earn extra rewards without doing any work beyond your normal spending.\nAll of these benefits are in addition to the existing perks, including no foreign transaction fees and a generous 100,000-point intro bonus. New cardholders can earn the intro bonus after spending $4,000 on purchases in the first 3 months from account opening. END
 TITLE: Chase Refreshes Sapphire Preferred and Reserve Credit Cards CONTENT: New Chase Sapphire Reserve® Benefits\n------------------------------------\nNew and existing Chase Sapphire Reserve® members can benefit from earning more points on eligible travel. Here's a look at the card's new rewards details.\n**New categories:**\n*   10 points per dollar spent on Chase Dining purchases through Chase Ultimate Rewards\n*   10 points per dollar spent on hotel stays and car rentals purchased through Chase Ultimate Rewards\n*   5 points per dollar spent on air travel purchased through Chase Ultimate Rewards\n**Existing categories:**\n*   3 points per dollar spent on dining (unchanged)\n*   3 points per dollar spent on travel outside of Chase Ultimate Rewards (unchanged)\nThese rewards program changes are in addition to the ongoing annual $300 travel credit and 60,000-point intro bonus that you can earn after spending $4,000 on purchases in the first 3 months from account opening.\nBeyond rewards, there's a food-centric perk to look forward to later this year: Chase Sapphire Reserve® members will have access to \"Reserved by Sapphire,\" which will feature the opportunity to book reservations at popular restaurants across the country.\nAdditionally, you will be able to access the newly announced Chase Sapphire Lounge by The Club airport lounges. Opening dates and locations will be announced over time, but currently are slated to include New York's LaGuardia Airport, Boston's Logan International Airport and Hong Kong International Airport. END
 TITLE: Chase Refreshes Sapphire Preferred and Reserve Credit Cards CONTENT: Should You Open a Chase Sapphire Credit Card?\n---------------------------------------------\nChase's new additions to the Chase Sapphire Preferred® Card and Chase Sapphire Reserve® make these cards a great addition to your wallet. The new benefits add even more flexibility to the rewards program, meeting consumers' desire for elevated rewards both at home and on the go.\nThe best Sapphire card for you depends on your budget and what you plan to use the card for. The Chase Sapphire Preferred® Card is a great entryway into the Sapphire product line, especially with its strong rewards program and reasonable $95 annual fee.\nIf you're a more frequent traveler, consider the higher-end Chase Sapphire Reserve®. While the card has a significantly higher $550 annual fee, you can benefit from an even wider range of perks, like the annual $300 travel credit and lounge access with Priority Pass Select membership.Before you apply for either card, check your FICO® Score☉ for free. This can help you gauge your likelihood of qualifying for the cards, since the Chase Sapphire Reserve® requires good to excellent credit and the Chase Sapphire Reserve® excellent credit. END
 TITLE: DoorDash Data Breach: What to Know CONTENT: What Information Was Compromised?\n---------------------------------\nVarious types of personal and financial information was taken from DoorDash, including:\n*   Names, email addresses, delivery addresses, order histories and phone numbers from users' profiles. Profile passwords were also taken, but were \"hashed and salted\"—protective measures that scramble information in a way that makes it nearly impossible to read.\n*   The last four digits of some customers' credit or debit cards. DoorDash says the full card numbers and card verification values (the three- or four-digit codes on the front or back of cards) weren't taken.\n*   The last four digits of some delivery workers' and merchants' bank accounts.\n*   Driver's license numbers of about 100,000 delivery people.\nAccording to DoorDash, the debit, credit and bank account numbers taken won't give hackers enough information to use cards or access bank accounts. END
 TITLE: DoorDash Data Breach: What to Know CONTENT: What Can You Do if You Were Affected?\n-------------------------------------\nDoorDash says it is working to contact those affected to let them know what information was taken. It has also created a 24\/7 support line that you can reach by calling 855-646-4683.\nEven if you haven't been contacted, if you think your account or information could have been compromised, you should change your DoorDash password. If you used that password for any other accounts, you might want to change those accounts' passwords as well.\nIf you've worked as a delivery person for DoorDash and believe your driver's license number was stolen, you should report the theft to your local police department and your state's Department of Motor Vehicles or transportation agency. END
 TITLE: DoorDash Data Breach: What to Know CONTENT: Protect Yourself From Future Data Breaches\n------------------------------------------\nWhether or not the DoorDash breach compromised your information, large data breaches can happen at any time. Here are four proactive steps you can take to help keep your personal information safe and make recovering from a breach as simple as possible.\n### 1\\. Secure Your Online Accounts\nCreate long, unique passwords for each of your online accounts as a basic step to keep your accounts secure. It's especially important to have strong, unique passwords for accounts that have your personal or financial information. Read Experian's guide to creating secure passwords to learn more, and consider using a password manager to help you create and remember all the passwords.\nWhen possible, enable two-factor authentication to help prevent others from logging in to your account even if they're able to figure out your username and password.\n### 2\\. Use Caution Before Sharing Your Personal Information\nFraudsters sometimes use stolen personal information to try to gather even more personal information.\nFor example, someone could use your name, email address and the last four digits of your bank account number to create an official-looking email asking you to reset your bank password. When you click on the link, you'll be directed to a page that looks similar to the bank's website, but was created to collect personal information.\nThese types of phishing scams can come via emails, texts or even phone calls. You should always be cautious about sharing personal or account information. It's best not to open links or attachments unless you recognize the sender. If someone calls you claiming to be from the police, a government agency or financial institution, you can hang up, look up the organization's number and call back to ensure you're speaking with an actual representative.\n### 3\\. Freeze Your Credit Reports\nFreezing your credit reports can keep fraudsters from opening accounts in your name even if they're able to steal your personal information. Creditors generally won't be able to access your credit reports—often a first step in opening a new account—unless you unfreeze (or \"thaw\") your report first.\nExperian offers free credit freezes and thaws, which you can manage online with the Experian Security Freeze Center. You also can add a free fraud alert to your credit report. When there's a fraud alert present, creditors will contact you to verify your identity when using your credit report to open a new account.\n### 4\\. Sign Up for Identity Theft Monitoring\nCompanies affected by a data breach sometimes offer credit monitoring to customers who were impacted. There are also many free options for credit monitoring, such as getting a free credit report every 30 days from Experian upon creating an account. If you're looking for an extra layer of protection, consider a more all-encompassing identity theft monitoring and resolution service, such as Experian's IdentityWorks℠. A subscription includes:\n*   Credit report monitoring of all three major credit bureaus (Experian, TransUnion and Equifax).\n*   FICO® Scores☉ based on your credit reports from all three major credit bureaus.\n*   Experian CreditLock, which lets you instantly lock and unlock your credit file.\n*   Dark web monitoring with alerts if your personal information is found on the dark web.\n*   A fraud resolution support team that can help you resolve problems if your identity is stolen.\n*   Up to $1 million in identity theft insurance, which can help cover the cost of restoring your identity and pay for unreimbursed expenses, such as lost wages or legal fees.\nAs data breaches continue to occur at an alarming rate, it's important to take proactive steps now to keep your information as safe as possible. And if you find you've been a victim of identity theft due to a data breach, act quickly to protect your personal information.\nFor more information on the DoorDash data breach, read the full statement from DoorDash. END
 TITLE: Buca di Beppo and Planet Hollywood Among 100+ Restaurants Breached: What to Do Next CONTENT: What Happened?\n--------------\nOn February 21, 2019, security researchers from KrebsonSecurity contacted Buca di Beppo with evidence that stolen credit card and debit card numbers from the restaurant's customers were being sold online. After an internal investigation, Earl Enterprises announced that cyber criminals had installed malware on its point-of-sale systems in various restaurant locations in the United States. About 100 restaurants were affected, ZDNet reports.\nThe malware allowed thieves to access payment information from debit and credit cards used in person at restaurants around the country. Potentially breached data includes card numbers, expiration dates and, in some cases, cardholder names. The company says that orders placed online were not impacted.\nAccording to Earl Enterprises, the breach has been contained and the company is working with security experts to review its systems and implement additional security measures. END
 TITLE: Buca di Beppo and Planet Hollywood Among 100+ Restaurants Breached: What to Do Next CONTENT: What If I've Eaten at One of These Restaurants?\n-----------------------------------------------\nTo find out if a restaurant you've dined at has been affected, use the Earl Enterprises online tool. You can search by state, city and restaurant. You should also carefully review your debit and credit card statements for any suspicious charges or activity. If you do see charges you don't recognize, report them to your issuer immediately.\nIf you think your card information could have been impacted, there are some steps you can take to protect yourself going forward:\n#### 1\\. Update Your Debit and Credit Card Numbers\nIf you know what debit or credit card you used at an Earl Enterprises restaurant, call the issuer of that card to request a new account number. Simply explain that you want a new account number and PIN because you're afraid your data has been compromised; they will issue you new cards at no cost. You won't want to delay—this information can be sold and used quickly on the dark web. And even if your data has not been used by cyber criminals yet, it could be at a later date.\n#### 2\\. Monitor Your Account Activity\nKeep an eye on your accounts for suspicious activity. Don't just blindly pay off your bills each month—be sure to eyeball your statements to make sure there aren't any unauthorized charges. You can also set up text and email alerts on your credit and debit accounts notifying you when they are used, which will update you in real time if there's an unauthorized purchase.\nBe sure to report fraudulent charges immediately. You're not liable for fraudulent credit card transactions, but waiting too long to report a fraudulent debit card charge could leave you on the hook for up to $500.\n#### 3\\. Check Your Credit Reports\nIf you're concerned about your personally identifiable information being out there, you should check your free Experian credit report for errors or suspicious accounts. Run a free dark web scan as well to find out if information like your Social Security number, phone number or email addresses are on the dark web.\n#### 4\\. Amp Up Your Identity Protection\nYou may also consider filing a free initial fraud alert on your credit file that remains active for one year through the Experian fraud center. (File it with one of the three national credit bureaus—Experian, TransUnion or Equifax—and you're good to go because the bureaus will share such alerts with their counterparts.) The fraud alert notifies lenders pulling your credit report to take extra steps to verify your identity—a measure that can frustrate and dissuade identity thieves.\nHowever, fraud alerts do not block access to your credit reports. One way to do that is to freeze your credit reports, a free measure that prevents lenders from issuing new credit in your name altogether.\nAnother way to protect yourself is through Experian CreditLock, a benefit offered by Experian's CreditWorksSM and IdentityWorksSM products, which:\n*   Allows you to easily lock or unlock your report in real time, with no waiting period.\n*   Provides daily monitoring of your credit file, which means you will be alerted about any key changes, including new account openings.\n*   Provides up to $1 million in identity theft insurance: If you become a victim of identity theft, you can be covered for the unreimbursed costs of restoring your identity, like fraudulent electronic fund transfers, lost wages, legal fees and travel expenses.\n*   Gives you access to your Experian credit report and FICO® Score☉ , along with all the other benefits of Experian membership, such as dark web monitoring, which lets you know if your information is found on the dark web.\nWhile it's nearly impossible to completely protect yourself from data breaches these days, taking steps to guard your identity going forward may put you in better shape for the next security breach announcement. END
 TITLE: Should Parents Pay for College? CONTENT: What to Consider Before Paying for College\n------------------------------------------\nIf you're like many parents, you may have some money set aside for your child's education. According to Sallie Mae, parents have $18,135 socked away for their child's college on average. While this is a sizable sum, the average published public school tuition is $10,560 a year for in-state students and $27,020 for out-of-state students—and that doesn't include room and board.\nTo bridge the gap, you could consider tapping into other savings or borrowing money. Before doing so, here are some questions to ask yourself:\n**Am I saving enough for retirement?** If you're behind on saving for the golden years, prioritizing your child's education during your highest-earning years could mean you have to delay retirement. Paying for college can set your child up to succeed, but consider whether providing total financial support will jeopardize your own financial stability.\n**Do I have enough saved for emergencies?** Ideally, you want to have three to six months of expenses stashed away in savings in case you lose a job or face a financial emergency. Before dipping into savings to pay for college, think about the potential risk of not having a financial cushion to fall back on if the unexpected happens.\n**Can I afford an additional debt payment?** If you're considering borrowing money to pay for your child's education, know how those payments may affect your budget. Perhaps you want to travel more or work less as the kids leave the nest. Consider whether having an extra debt payment can fit into your plans.\n**Do I want my student to have some skin in the game?** Even if you can afford to pay your child's tuition bills, having the student invest some of their hard-earned cash into their education could motivate them to take school more seriously. Consider whether you want your children to have some financial stake in their education, even if it's just paying for books or miscellaneous expenses. END
 TITLE: Should Parents Pay for College? CONTENT: How to Pay for College\n----------------------\nMany parents choose to pay for at least a portion of their child's education. If you still have some time before your child goes off to college, start planning now for the costs ahead. Here are a few strategies to save money on college costs and ways to pay for school:\n### 1\\. Stay Local\nIn-state tuition at a public school could cost as much as 40% less than the cost of out-of-state tuition. Talk to your student about in-state options and show them the difference in price. They could also consider attending a junior college for a year or two before transferring to save money.\n### 2\\. Apply for Scholarships\nScholarship applications can take time to complete, but investing the time can pay off. There are thousands of scholarships available that your student can apply for, and scholarship money is free money they don't have to worry about paying back.\n### 3\\. Utilize 529 Plans\nThere are two types of 529 college savings plans: prepaid tuition plans and education savings plans. The prepaid tuition plans let you purchase college credits today for future attendance at a specific school, while 529 education savings plans are investment accounts for education expenses.\nSavings in 529 plans grow tax-free as long as you use funds for qualifying expenses, such as tuition, books, room and board, and other education costs. If time is on your side, putting away money each month into a 529 plan could help you cover most (if not all) of your child's college costs when it's time to send them off.\n### 4\\. Apply for Student Loans and Parent PLUS Loans\nIf your student is getting ready to begin college and you need assistance paying for tuition and other costs, you could consider borrowing money. Typically, federal student loans offer the best rates and terms, especially those your child takes out in their name. Students may qualify for subsidized or unsubsidized federal student loans, and you may be eligible for federal parent PLUS loans. Private student loans may also be an option.\nIf you and your student decide taking out loans is necessary to help pay for their education, you may be best off getting federal student loans in their name and helping them pay as loan payments become due (typically six months after they leave school). This will give them access to potential benefits down the road, such as income-based repayment or student loan forgiveness.\n### 5\\. Take a Hybrid Approach\nPaying for education expenses doesn't have to be all or nothing. If you look at the numbers and determine that footing the entire college bill would put you in a financial bind, you and your student could each cover a portion of their education expenses. Here are some hybrid scenarios:\n*   **Give your student a stipend.** Figure out a dollar amount that you can afford to give your student for college each semester. Then the student could use student loans or income from a job to pay for costs the stipend doesn't cover.\n*   **Pay tuition and have the student cover the rest.** If your student goes to an affordable in-state school or junior college, you may be able to pay the tuition each semester out of pocket. Then you can have them pay for room, board and other living costs.\n*   **Use college savings and have the student pay for what it can't cover.** Develop a budget for the college savings you have. If you don't have enough to cover all expenses for all four years, help your student come up with a plan to pay for the rest, which could include a combination of student loans and income earned from a part-time job.\n*   **Split up the student loans.** If you need to borrow money to pay for education costs, you could take out some loans in your name and have the student take out some loans in their name. With this approach, neither one of you is shouldering all of the debt.\nIf you decide to borrow money for school, it's important to be mindful of the debt load you and your student take on. The average student loan debt in 2020 was $38,792, according to Experian data. Debt balances that are high compared to your income can be challenging to pay off. Keeping up with debt payments can also make it hard to meet other financial goals as you look toward retirement and your student looks toward starting a life post-college. Making money-saving decisions early on, such as attending a less expensive school or finding ways to avoid student loans, can make a big difference financially down the road. END
 TITLE: Should Parents Pay for College? CONTENT: Review Your Credit\n------------------\nMost federal student loans don't require a credit check, but parent PLUS loans do, and having adverse credit history could affect your ability to get approved. StudentAid.gov defines adverse credit history as \"a record of poor repayment history on one or more loans or credit cards.\"\nIf you're not sure where your credit stands, you can pull your Experian credit score and report for free. Taking steps to improve your credit could help you get approved for federal student loans and get the best rate possible on private student loans.\nPutting aside money (even late in the game) can help you pay some of the bills and avoid borrowing more than you can easily afford to pay back. Scholarships can also offset the cost of school, and staying in-state can help you save on tuition. Whether college is around the corner or several years from now, it's worth discussing with your student now how much of their education cost, if anything, you plan to cover. Let them know what you can afford to pay and what you feel comfortable borrowing so you can come up with a plan together. END
 TITLE: What Is Shoulder Surfing? CONTENT: When Does Shoulder Surfing Happen?\n----------------------------------\nShoulder surfing can occur anytime you're sharing personal information in a public place. That includes not only ATMs, payment kiosks and PIN pads, but just about any place where you use a laptop, tablet or smartphone to input personal data.\nThe original shoulder surfers usually didn't loom over their victims' shoulders to scope out information. Instead, they stood a safe distance away and interpreted finger movements as people typed in numbers on a keypad. Similarly, today's shoulder surfers often escape notice as they quietly observe others in public places like airport lounges and shopping centers, bars and restaurants, on trains or subways, or anywhere people are out and about.\nWhile you may feel safe from shoulder surfing because there's no one right behind you at the ATM, today's sophisticated criminals often snoop from afar. They might use high-powered binoculars, miniature cameras, or the camera on their own phone or tablet to peer at your screen or keypad. They could be eavesdropping (sometimes using powerful microphones) as you read off credit card numbers over the phone or provide your Social Security number over the phone. Often, the criminals snap photos, take a video or record audio of the information and save it to interpret later.\nHere are some common places where shoulder surfing might occur:\n*   **At a bar**: You're at a crowded restaurant bar waiting for your date. To pass the time, you log into Instagram. Unfortunately, you don't realize the person jammed up against you is eyeing your password—which happens to be the same password you use for your email account and bank account.\n*   **At an ATM**: You're getting cash at an ATM. You feel safe because the man behind you in line is at least 10 feet away, looking at his phone (or so you think). Actually, he's recording your finger movements on his phone and will quickly decipher them to get your PIN number.\n*   **At the airport**: Your flight is delayed, so you grab your laptop and kill time in the airport lounge with a little online shopping. You're so excited to discover the shoes you've been eyeing are on sale, you don't see the woman a few seats away staring at your screen as you input your credit card information. END
 TITLE: What Is Shoulder Surfing? CONTENT: What Are the Consequences of Shoulder Surfing?\n----------------------------------------------\nUsing your credit card information to make fraudulent purchases is just one example of the damage shoulder surfers can do. The more personal information a criminal captures about you, the more far-reaching the consequences can be for your bank account and your financial health.\nFor example, if you use a debit card at an ATM where thieves have installed a card skimmer, they may be able to capture both your PIN and your account number and gain access to your bank account. If a criminal sees your smartphone PIN and gets hold of your phone, they could access all the account information, payment card data and passwords stored on it.\nOne or two fraudulent purchases can be quickly spotted and easily corrected by issuing you a new credit card. But if the fraud isn't discovered right away, it could have major long-term fallout. Shoulder surfers may also sell your data on the dark web.\nAt worst, shoulder surfing can expose you to identity theft. A criminal may use your personal information, such as your Social Security number, to open new credit accounts, apply for loans, rent apartments or apply for jobs under your name. An identity thief could get their hands on your tax refund, use your health insurance to get medical care or apply for government benefits under your name. They might even commit a crime and provide your personal information when questioned by police, leaving you with a criminal record or a warrant for your arrest.\nIdentity theft can take months or years to straighten out, requiring you to make endless phone calls, take time off work and pay for services or reports needed to reclaim your identity. The financial and emotional toll can be huge, while your credit score potentially suffers in the meantime. A credit history affected by fraud and identity theft can make it harder to rent an apartment, buy a home, finance a new car or even get a job. END
 TITLE: What Is Shoulder Surfing? CONTENT: Steps for Preventing Shoulder Surfing\n-------------------------------------\nAs you can see, there are many reasons to be concerned about shoulder surfing. Following these steps can help protect you from shoulder surfers.\n*   **Get physical.** If you must enter a password or PIN on a mobile device in public, stand or sit with your back against a wall. When using an ATM or PIN pad, shield the keys from view with your body and your other hand. If there's no way to avoid sharing credit card numbers or other sensitive data over the phone, move away from others and speak quietly, shielding your mouth with your hand. Put privacy protector screens on your laptop, tablet and smartphone. While this won't keep thieves from spying on what you type, it can prevent them from seeing which account you're logging into.\n*   **Avoid reusing passwords.** Two-thirds of Americans in a Harris Poll last year admit to reusing passwords for more than one account. Doing so can multiply the fraud that could result if that password is compromised. If a shoulder surfer gets hold of a password you've used and your email address, they can try them with hundreds of websites and services. This could result in them gaining access to more of your accounts. Use password manager apps to generate secure passwords (random strings of letters, numbers and symbols) and store them securely to ensure you never reuse a password. Since the password manager logs in for you, you don't have to type anything, so there's nothing for shoulder surfers to see—just make sure to protect your master password well.\n*   **Take advantage of technology.** It doesn't matter how secure your passwords are if someone can see you typing them. Employ the facial recognition or fingerprint logins some apps offer on laptops and mobile devices to access your data without the need to input PINs or passwords. Use contactless payment apps to pay without keying in PINs.\n*   **Don't log in to sensitive accounts on public Wi-Fi or shared devices.** Shoulder surfers aside, it's never a good idea to use public Wi-Fi or shared devices (such as computers at the public library or tablets on display at the Apple Store) to log in to your personal accounts or shop online. Public Wi-Fi networks are vulnerable to hackers who can tap into the connection and steal your data.\n*   **Use two-factor authentication.** Two-factor authentication requires a second form of identity verification in addition to your password. For example, your bank might send you a one-time code to log in that's only good for a few minutes. Even a thief with your password or PIN can't get them into your bank account without inputting the code. Two-factor authentication can slow down access to your accounts, but protecting your sensitive data is worth the delay.\n*   **Watch for warning signs of foul play.** The earlier you spot signs of fraud or identity theft, the faster you can act to address it. Review your credit card, bank account and other financial statements every month. Look for anything that appears suspicious, such as a transaction with a company you don't recognize or a withdrawal from an ATM in a strange city. If you have financial accounts or store accounts you rarely use, log in occasionally and consider removing saved payment information. END
 TITLE: What Is Shoulder Surfing? CONTENT: Monitor Your Credit Regularly\n-----------------------------\nChecking your credit report is free, and you can get it through AnnualCreditReport.com or directly from Experian. Doing so regularly can help you spot potential fraud and identity theft. Staying on top of your credit report is easy to do when you sign up for free credit monitoring. Experian's free credit monitoring service alerts you of new inquiries and accounts, changes to your personal information, and suspicious activity on your Experian credit report.\nIf you've fallen victim to fraud, or suspect you may have, consider adding a fraud alert to your credit reports. A fraud alert (also called a _security alert_) notifies lenders to take additional steps to verify your identity before processing applications for new credit cards or loans in your name. Placing a fraud alert at any one of the three major credit bureaus—Experian, Equifax and TransUnion—automatically places it at all three.\nShoulder surfers can pose a threat to your personal data. Using a credit monitoring service—and a little common sense when you're in public—can give you the peace of mind to \"hang loose.\" END
 TITLE: How Credit Card Issuers Classify Dining Purchases CONTENT: What Are Merchant Category Codes?\n---------------------------------\nCredit card issuers use four-digit numbers that are known as merchant category codes, or MCCs, to classify different types of businesses.\nMCCs were created by the IRS in 2004 to help credit card networks and issuers identify businesses, analyze customer behavior and spending, track payment processing charges and determine bonus rewards on purchases. When a business establishes a payment system with a credit card payment network, such as Mastercard or Visa, it is assigned a merchant category code based on what it sells or the service it provides.\nBecause MCCs are assigned by the payment networks or self-designated by the businesses themselves, credit card issuers—banks such as Bank of America or Chase—do not control which businesses fall under which merchant category codes. You might find that some food delivery services use an MCC that your credit card issuer considers \"dining,\" and earns bonus rewards on orders as a result. On the other hand, a business you consider a restaurant might not earn any bonus rewards on dining expenses because of the MCC it is categorized under.\nCredit card issuers have their own systems of classifying different types of businesses too. While based on merchant category codes, they can vary from the official MCCs and from other issuers' categories.\nIt's good to pay attention to merchant category codes so you understand how credit cards might group different types of businesses. However, it's more important to look at how your specific credit card will code purchases—dining and otherwise—so you can set your rewards earnings expectations accordingly. END
 TITLE: How Credit Card Issuers Classify Dining Purchases CONTENT: What Purchases Count Toward Dining Rewards?\n-------------------------------------------\nThe major issuers in the U.S. offering credit cards that earn bonus rewards on dining typically provide listings for which businesses are included. Always check the terms of your specific cards to understand what kinds of purchases will earn bonus rewards. To help get you started, here are some guidelines to what purchases are considered dining by each of the major credit card issuers.\n### American Express\nAmerican Express counts most restaurants, including fast food restaurants, under its dining category. Many delivery services, such as DoorDash and Grubhub, also count.\nThere are just two things to beware of:\n1.  If a restaurant is located within another type of business (such as a hotel, casino, stadium or theme park), it may not be coded as a dining establishment, and will not be eligible for bonus rewards.\n2.  Some of Amex's cards only earn bonus rewards on U.S. restaurant purchases, whereas others earn them at restaurants globally, so always review your specific card's terms.\nTo make a quick comparison, the American Express® Gold Card earns 4 points per dollar on dining, which includes restaurants, takeout and delivery; unlike a typical credit card, however, this card only allows you to carry a balance for certain charges, not all. The Marriott Bonvoy Brilliant™ American Express® Card, on the other hand, earns 3 points per dollar on dining, but only at U.S. restaurants, including takeout and delivery. Terms apply.\n### Bank Of America\nBank of America considers the following types of businesses under the dining designation:\n*   Eating places\n*   Restaurants\n*   Fast food restaurants\n*   Bars\n*   Cocktail lounges\n*   Discotheques\n*   Nightclubs\n*   Taverns\n*   Drinking places\nWhile this list doesn't explicitly include cafes, many of them (including Starbucks) fall under dining, too, so you can expect bonus rewards there—as well as with many of the major food delivery services.\n### Capital One\nAmong the Capital One cards that offer dining bonuses, the Capital One SavorOne Cash Rewards Credit Card earns 3% cash back on dining. Here are the types of businesses that qualify:\n*   Restaurants\n*   Cafes\n*   Bars\n*   Lounges\n*   Fast food chains\n*   Bakeries\nAlthough Capital One does not include delivery services, many may be eligible for this card's bonus earning.\n### Chase\nSeveral Chase cards earn bonus points on dining. For example, the Chase Sapphire Reserve® card earns 3 points per dollar in addition to the card's other benefits. The Chase Sapphire Preferred® Card also earns 3 points per dollar on dining. For the purpose of rewards, Chase considers the following as dining outlets:\n*   Sit-down or eat-in dining\n*   Fast food restaurants\n*   Fine-dining establishments\n*   Delivery services that classify themselves as a restaurant\nInterestingly, Chase explicitly notes that delivery services might earn bonus rewards based on their MCC classification.  \nHow to Maximize Dining Rewards Credit Cards\n-------------------------------------------\nGiven just how many types of businesses may count toward a credit card's dining bonus category, it's not hard to maximize dining rewards credit cards. However, to make absolutely sure you're getting the most out of your rewards cards, consider doing the following:\n*   **Pick the right card**. Dining rewards credit cards range from those that charge no annual fee and earn cash back, like the Chase Freedom Unlimited®, to high-end products that earn travel rewards, like the Chase Sapphire Reserve®, with its $550 annual fee. Many rewards credit cards earn cash back, while the Ultimate Rewards points the Chase cards earn are good for cash back in addition to travel rewards and other possibilities. Consider the types of rewards you want to earn and whether the value of the points or cash back you earn will outweigh a card's annual fee each year before submitting an application.\n*   **Use your card for dining purchases whenever possible**. If you have a card that earns bonus rewards on dining, be sure to use it for dining purchases, including takeout and delivery services. Otherwise, you could be leaving rewards on the table.\n*   **Look out for caps and maximums**. Certain credit cards cap the rewards you can earn in various categories, including dining.\n*   **Take advantage of limited-time bonuses**. Other credit cards earn bonuses on categories that rotate each quarter, and it's worth leveraging them to the fullest. For instance, the Chase Freedom Flex℠ earns 3% cash back on dining and 5% cash back at different places each quarter when you activate, which might include wholesale clubs or grocery stores, then 1% back on everything else. Not only that, the Chase Freedom Flex℠ is offering an introductory bonus that allows cardholders to earn 5% on grocery store purchases (except at Walmart and Target) on up to $12,000 in spending for the first year.\n*   **Call your issuer**. If you think that a purchase should have been coded as dining but wasn't—it happens all the time due to those pesky MCCs—don't be afraid to call your issuer and ask them to reconsider adding extra rewards to your account. The worst they can do is say no.\nIf you have a credit card that earns bonus rewards at restaurants, it's important to understand how issuers classify dining rewards and which purchases will count. Then, make sure you use your card (responsibly) for any eligible charges to earn the most rewards possible. For more information and guidance, check out Experian CreditMatchTM for credit card offers matched to your credit profile that could earn you bonus rewards on dining. END
 TITLE: How Credit Card Issuers Classify Dining Purchases CONTENT: How to Maximize Dining Rewards Credit Cards\n-------------------------------------------\nGiven just how many types of businesses may count toward a credit card's dining bonus category, it's not hard to maximize dining rewards credit cards. However, to make absolutely sure you're getting the most out of your rewards cards, consider doing the following:\n*   **Pick the right card**. Dining rewards credit cards range from those that charge no annual fee and earn cash back, like the Chase Freedom Unlimited®, to high-end products that earn travel rewards, like the Chase Sapphire Reserve®, with its $550 annual fee. Many rewards credit cards earn cash back, while the Ultimate Rewards points the Chase cards earn are good for cash back in addition to travel rewards and other possibilities. Consider the types of rewards you want to earn and whether the value of the points or cash back you earn will outweigh a card's annual fee each year before submitting an application.\n*   **Use your card for dining purchases whenever possible**. If you have a card that earns bonus rewards on dining, be sure to use it for dining purchases, including takeout and delivery services. Otherwise, you could be leaving rewards on the table.\n*   **Look out for caps and maximums**. Certain credit cards cap the rewards you can earn in various categories, including dining.\n*   **Take advantage of limited-time bonuses**. Other credit cards earn bonuses on categories that rotate each quarter, and it's worth leveraging them to the fullest. For instance, the Chase Freedom Flex℠ earns 3% cash back on dining and 5% cash back at different places each quarter when you activate, which might include wholesale clubs or grocery stores, then 1% back on everything else. Not only that, the Chase Freedom Flex℠ is offering an introductory bonus that allows cardholders to earn 5% on grocery store purchases (except at Walmart and Target) on up to $12,000 in spending for the first year.\n*   **Call your issuer**. If you think that a purchase should have been coded as dining but wasn't—it happens all the time due to those pesky MCCs—don't be afraid to call your issuer and ask them to reconsider adding extra rewards to your account. The worst they can do is say no.\nIf you have a credit card that earns bonus rewards at restaurants, it's important to understand how issuers classify dining rewards and which purchases will count. Then, make sure you use your card (responsibly) for any eligible charges to earn the most rewards possible. For more information and guidance, check out Experian CreditMatchTM for credit card offers matched to your credit profile that could earn you bonus rewards on dining. END
 TITLE: Should You Pay for Cellphone ID Protection? CONTENT: With concerns about identity theft on the rise, you might be eyeing your cellphone service carrier's identity protection offers, which can be bundled with your phone bill for about the same price as a monthly streaming subscription or two. Cellphone ID protection can provide a number of safeguards for your personal information and is available through a number of cell service providers. Services from major carriers include: Verizon's Digital Secure, AT&T's IDnotify and Protection <360> through T-Mobile. Protection plans vary in the specific services they offer, but they generally aim to protect your data in three main ways:\n*   **Alerts**: A cellphone ID protection service can alert you if it detects that your personal information—including your Social Security number, bank account info or credit card numbers—is being shared online. A cellphone carrier-provided plan may even sound the alarm with an app notification if it detects an unsafe website, or sees that you're trying to connect to an unprotected Wi-Fi network.\n*   **Monitoring**: ID security programs may continuously monitor your credit reports and other wells of personal information for changes like new accounts in your name. If something noteworthy is found, you'll receive a notification to look into any changes before they can escalate.\n*   **Support and insurance**: On the chance that your identity or personal information _does_ get stolen, ID protection plans usually have some legal and monetary coverage that could help you recover from fraud.\nCell providers have been increasingly in the spotlight for their ID theft vulnerability. The most common cellphone ID fraud happens when thieves gather personal data to obtain new phone lines in your name (called \"porting\") or transfer your existing phone line to a SIM card they control (known as \"SIM swapping\").\nOnce thieves have hijacked your cell service, they can receive two-factor authentication codes and calls to \"confirm\" their identity as you. From there, they can gain entry to your accounts, including your finances, and spend at will—meanwhile, you're left wondering why your cellphone service suddenly stopped working. They may also attempt to collect your information through social media and with phishing attacks, in which you're lured into entering login or account information on a phony website. END
 TITLE: Should You Pay for Cellphone ID Protection? CONTENT: Is Cellphone ID Protection Worth It?\n------------------------------------\nWith all these risks to consider, when is it worthwhile to pay for ID protection through your cellphone company? Let's take a look at the pros and cons you can expect if you go through your carrier for identity protection. END
 TITLE: Should You Pay for Cellphone ID Protection? CONTENT: How to Protect Yourself From Cellphone ID Fraud\n-----------------------------------------------\nThere are plenty of ways to safeguard your own identity from cellphone fraudsters, especially if you're not particularly at risk (you may be at risk if you know your personal information has been compromised before, or if a free dark web scan shows any of your information currently in jeopardy). END
 TITLE: Young and Old: Breaking Out Millennial Debt and Credit CONTENT: Millennial Debt Varies Drastically by Age\n-----------------------------------------\nWhile it's often reported that the millennial generation has one of the highest total debt balances (the generation ranks third highest by total debt), this is not necessarily true for every member of the group. In fact, younger millennials have a total average debt balance that's less than half that of their older peers, according to Experian data.\nYounger millennials carry a total average debt balance of $41,330, compared with the $104,064 carried by older members of the generation. If we were to rank these averages, the younger portion of the age group would have the third-lowest average debt balance while the older portion would rank as the second highest of all generations.\nSince debt balances grow with age—peaking at 46—the fact that the younger members of a generation have less debt than their older peers isn't exactly surprising. END
 TITLE: Young and Old: Breaking Out Millennial Debt and Credit CONTENT: Most Debt Balances Among Older Millennials Double Those of Younger Group\n------------------------------------------------------------------------\nIn line with their total debt, balances for nearly all types of debt carried by older millennials were noticeably greater than those of the younger group. Credit card balances among the older group were 70% greater and personal loan balances were 61% greater.\nSource: Experian data from Q2 2019 END
 TITLE: Young and Old: Breaking Out Millennial Debt and Credit CONTENT: Delinquency Rate Higher Among Younger Millennials\n-------------------------------------------------\nWhen it comes to making on-time payments, younger millennials tend to struggle more than the older group—but not by much. Younger millennials had an overall delinquency rate of 4.3% compared with the older group's 3.6% delinquency rate, according to Experian data from the third quarter of 2019.\nThe difference between the two age groups was most noticeable when it came to accounts that were 30 or more days past due (DPD). A total of 11.6% of younger millennial accounts were 30 or more DPD, compared to a rate of 9.8% held by the older group.\nSource: Experian data from Q3 2019 END
 TITLE: Young and Old: Breaking Out Millennial Debt and Credit CONTENT: Difference in FICO® Scores☉ Is Comparatively Modest\n---------------------------------------------------\nIn stark contrast to the differences they show in debt totals, the youngest (24) and oldest (39) millennials have average FICO® Scores that are closer than most generations. Twenty-four-year-olds had an average FICO® Score of 660, while 39-year-olds had an average of 677—a difference of only 17 points.\nBy comparison, the youngest and oldest members of Generation X had a score difference of 26 points, and the score difference between the youngest and oldest baby boomers was 48 points. This trend among millennials makes sense, as even older millennials still have relatively young credit histories. END
 TITLE: Do Millennials Have Higher Credit Scores in Urban or Rural Areas? CONTENT: The correlation between urban dwellers and higher credit scores held true in almost all cities we looked at, no matter the region of the country, the economic health of the city, or the cost of living there. Even the urban areas with some of the lowest credit scores on this list (Miami-Fort Lauderdale-Pompano Beach and Atlanta-Sandy Springs-Marietta) had a higher average FICO® Score than their respective states rural areas. END
 TITLE: Do Millennials Have Higher Credit Scores in Urban or Rural Areas? CONTENT: Urban Millennials Make More Money and Have Higher Debt\n------------------------------------------------------\nIn every one of the MSAs included in our analysis except Las Vegas, the average household income for millennials in cities was higher than the household income for their peers in non-urban areas. Millennials in cities also tended to have higher overall debt loans but, as their credit scores showed, seem to be managing that debt. END
 TITLE: Do Millennials Have Higher Credit Scores in Urban or Rural Areas? CONTENT: But Urban Millennials Still Don't Best the Overall Average Credit Score\n-----------------------------------------------------------------------\nWhile millennials in cities have higher credit scores than their peers in non-urban areas, their scores remain lower than the all-generation averages per state and nationally. Even with recent increases, millennials' average FICO® Score is 25 points lower than the average 703 score across the country. END
 TITLE: Do Millennials Have Higher Credit Scores in Urban or Rural Areas? CONTENT: More Research Is Needed\n-----------------------\nWhile our analysis shows that millennials in urban areas do have higher credit scores, it doesn't conclusively explain the reason for the disparity. The answer may lie in the lifestyle differences between urban millennials and their rural peers, which could help to explain why the two groups use credit in different ways. Those in urban areas, for example, may be more likely to rent (rather than own their home) or not to own a car, but they also tend to earn more money and have higher overall debt loads. END
 TITLE: Millennial Credit Card Use Is on the Rise CONTENT: Millennial Credit Scores Continue to Increase\n---------------------------------------------\nOver the past five years, millennial consumers—those ages 24 to 39—have increased their average FICO® Score☉ by 17 points. This reflects the highest increase of any generation for that time period. Average scores for millennials were at 668 in Q2 2019, a jump from their Q2 2015 score of 651.\nInterest rates and approval for credit cards are based heavily on consumers' creditworthiness, and as millennials have grown older, their improved credit scores have helped them obtain more favorable rates and terms on credit cards and loans. END
 TITLE: Millennial Credit Card Use Is on the Rise CONTENT: Millennial Credit Card Balances Growing Fastest Among Generations\n-----------------------------------------------------------------\nThe uptick in millennials credit use is seen in the growth of their credit card balances over the past five years. Millennial credit card balances have risen 40% since 2015, the most rapid increase of any generation during that period.\nIn Q2 2019, millennials owed an average of $4,889 in credit card debt—$1,390 more than they owed in 2015. Compared with other generations, millennials' average credit card balance ranks in the middle: third-highest in Q2 2019, following Generation X's average balance of $8,215 and baby boomers' average of $6,949.\nPer credit card account, millennials (who carry an average of 3.2 credit cards each) had an average balance of $1,528 in Q2 2019. That's the second-highest per-account balance, bested only by Generation X, who hold an average of 4.3 cards and carried an average balance of $1,910 per card account. Baby boomers had the third-highest per-account average balance of $1,448. And while older generations may still have more credit card debt overall, millennial spending per account could offer an early glimpse into how millennials plan to use credit cards as they age. END
 TITLE: Millennial Credit Card Use Is on the Rise CONTENT: Types of Credit Cards for Millennials\n-------------------------------------\nThough millennials' average FICO® Score of 668 hovers right below the score range considered \"good\" (670-739), there are still credit card opportunities within reach. Depending on how old the millennial is, what stage of life they are at and where their credit score stands, they may be eligible for several different types of credit cards.\nMillennials whose credit is on the lower side may consider getting an entry-level rewards credit card that allows them to earn benefits as they spend with their card. Cards such as the Capital One® QuicksilverOne® Cash Rewards Credit Card and Credit One Bank® Platinum Rewards Visa are recommended for consumers with a credit score between 580 and 669, and both offer cash back earning opportunities.\nYounger millennials just starting their credit journey could consider applying for a secured credit card, which has a lower barrier to entry and is helpful for those looking to improve their credit scores. Secured credit cards require a security deposit (which is often equal to your credit limit) as a method to limit the risk taken on by the credit card companies.\nMillennials with longer credit histories and credit scores that are considered good or better could consider applying for slightly more competitive credit cards, like the Chase Sapphire Preferred® Card. These cards come with heftier annual fees, but offer valuable reward opportunities that can easily outweigh the yearly fee burden. END
 TITLE: Millennial Credit Card Use Is on the Rise CONTENT: How Millennials Can Keep Improving Their Credit Scores\n------------------------------------------------------\nRegardless of what credit score a millennial has right now, it's important to remember that building a strong credit history and score takes time, so it's imperative to begin thinking about credit now. Here are some ways to improve credit:\n*   **Pay all bills on time.** Payment history is the most important aspect of a credit score.\n*   **Keep credit card balances low.** Monitoring how much available credit they use each month is also important, as credit utilization is the second most important aspect in calculating a credit score.\n*   **Don't apply for too many credit cards at once.** Lenders view this is risky financial behavior.\nFor millennials looking to jumpstart or easily increase their credit scores, Experian Boost™† is an option that gives credit for on-time utility and telecom payments. Experian Boost can help a consumer raise their FICO® Score instantly, and is a great tool for someone early on in their credit journey. END
 TITLE: Bank of America Launches Unlimited Cash Rewards Credit Card CONTENT: *   **Unlimited 1.5% cash back**: Earning rewards is simple with this card since you don't have to worry about rotating categories or activation. You simply earn 1.5% cash back on all purchases. There's no limit to the amount of cash back you can earn, and rewards don't expire while your account remains open. Plus, you can easily redeem rewards for a statement credit or deposit them into a Bank of America checking or savings account, or an eligible Merrill account.\n*   **Elevated cash back for Preferred Rewards members**: Bank of America Preferred Rewards members can increase their cash back earnings by 25%, 50% or 75%, depending on the rewards tier they're in. Here's the cash back breakdown per tier: 1.875% for Gold, 2.25% for Platinum and 2.625% for Platinum Honors members.\n*   **Special financing offers**: You can benefit from an introductory 0% APR on purchases and balance transfers for 15 billing cycles. The 0% introductory APR on balance transfers only applies to transfers made in the first 60 days you have the card. After the intro period ends, a 13.99% to 23.99% variable APR applies. Balance transfers carry a 3% fee with a $10 minimum.\n*   **Earn an intro bonus**: Simply spend a minimum of $1,000 in purchases in the first 90 days of account opening to earn a $200 online cash rewards bonus. END
 TITLE: Bank of America Launches Unlimited Cash Rewards Credit Card CONTENT: Is the Bank of America® Unlimited Cash Rewards Credit Card Right for You?\n-------------------------------------------------------------------------\nIf you have an existing banking or investing relationship with Bank of America, this card can make a great addition to your wallet. Bank of America Preferred Rewards members have the potential to earn up to 2.625% cash back on every purchase, which is an unmatched rate for all purchases. That said, the account balance required for higher Preferred Rewards tiers is out of reach for most people. Even if you aren't a Preferred Rewards member, you can still benefit from the simple cash back structure and introductory 0% APR this card provides.\nChecking your credit score is a good first step to take before applying for this card since Bank of America credit cards typically require good to excellent credit. If your credit score isn't within that range, you can use Experian CreditMatch™ to find credit cards that fit your credit profile.\nIf you want to earn even more cash back, consider cash back cards that offer 2% back, like the Wells Fargo Active Cash℠ Card, with its unlimited 2% cash rewards rate on purchases. The Citi® Double Cash Card - 18 month BT offer from our partner is another alternative with up to 2% cash back on every purchase: You earn 1% cash back when you make a purchase and another 1% cash back when you pay your balance. END
 TITLE: Can You Transfer Credit Limits Between Credit Cards? CONTENT: What Does It Mean to Transfer Credit Limits?\n--------------------------------------------\nTransferring or shifting credit limits means that you're moving a portion of your available credit from one card to another with the same financial institution. This is possible because card issuers allocate a certain amount of borrowing power to cardholders, which may or may not be split among several cards. Moving around your credit limits doesn't increase or decrease your overall available credit.\nHowever, that also means you can't transfer a credit limit from a card with one credit card company to a card with another.\nTransferring credit limits is different from requesting a credit limit increase or decrease on a card because you're not gaining or losing any available credit. While your limit will go down on the card from which you're transferring available credit, the limit on the other card will increase in equal measure.\nAs a result, you'll maintain the same total amount of credit with the same bank. END
 TITLE: Can You Transfer Credit Limits Between Credit Cards? CONTENT: Requesting to shift your available credit from one card to another is a relatively simple process, but details can vary from bank to bank.\nWith many banks, for instance, you'll need to call the customer service team to request a transfer. With others, you may be able to send a secure message through your online account.\nNotably, American Express may allow you to file your request through your online account without needing to contact customer service directly.\nIt's important to keep in mind, though, that there may be limitations with certain banks. For example, you may be required to have both accounts open for a set period or request a credit line increase on one card before you can transfer available credit to the other. Some banks don't even allow you to reallocate available credit to another card.\nIf you have questions, don't hesitate to contact your credit card issuer to get the answers you need. END
 TITLE: Can You Transfer Credit Limits Between Credit Cards? CONTENT: Why You May Want to Transfer Credit Limits\n------------------------------------------\nThere are several reasons to consider moving some of your available credit from one card to another. Here are some situations where you may want to request a transfer. END
 TITLE: Can You Transfer Credit Limits Between Credit Cards? CONTENT: Watch Your Credit for an Impact\n-------------------------------\nRegardless of why you want to transfer available credit from one card to another, it's important to watch for any positive or negative effects on your credit score. With Experian's free credit monitoring service, you'll get free access to your Experian credit report, along with your FICO® Score☉ powered by Experian data.\nYou'll also get real-time alerts when changes are made to your credit report, such as when a new inquiry is added.\nAfter you request the credit limit transfer, keep an eye on your credit score and report to find out if there's an impact. Then continue to monitor your credit regularly to continue to build or maintain a good credit history for when you need it. END
 TITLE: How to Avoid Payday Loans CONTENT: What Is a Payday Loan?\n----------------------\nA payday loan is a short-term loan provided by lenders outside of the traditional banking space. These loans are typically $500 or less and have terms of two to four weeks, or until your next payday. While many states regulate payday loan terms, you can expect to pay $10 to $30 per every $100 borrowed—or 400% or more in interest based on the annual percentage rate (APR), according to the Consumer Federation of America.\nPayday loan regulations vary by state, with some states even banning them entirely. Payday lenders don't usually require a credit check or proof that the borrower has the means to pay back the loan. These loans commonly are rolled over or reborrowed if the borrower can't pay the amount back as agreed—resulting in even higher borrowing costs.\nBorrowers who seek out payday loans may be from underbanked communities or may have limited access to other financial tools that provide better financial options. According to the Consumer Financial Protection Bureau (CFPB), payday loan borrowers are concentrated among women, Black and Hispanic consumers, low-income consumers, those with a high school education or less, and consumers 40 to 61 years old. The CFPB notes that 60% of those who use alternative financing (specifically payday loans, title loans and pawn loans) report being turned down for mainstream financing or not approved for the amount needed.\nDespite their easy access, payday loans can result in a cycle of costly debt for borrowers. END
 TITLE: How to Avoid Payday Loans CONTENT: Alternatives to Payday Loans\n----------------------------\nIf you need cash to help you cover expenses until your next paycheck, consider these alternatives to payday loans.\n*   **Apply for a personal loan.** Credit unions and other lenders may be willing to lend you the money you need, even if you have bad credit. If you don't belong to a credit union, look into local credit unions in your area and find out if you qualify (you must be a member of a credit union to apply for a loan there). Other lenders, including online loan providers Avant and Upstart, offer loans to those with fair or poor credit, often starting at $1,000 or more.\n*   **Reach out to friends and family.** If you need a smaller amount to get you to your next paycheck, consider asking a family member or close friend for a loan. Even if it's an uncomfortable conversation, this could be a good option, as long as you put the loan agreement in writing and stick to the terms you've agreed to. Because this option could potentially negatively impact your relationship, proceed with care and avoid agreeing to any repayment terms that you think you may be unable to fulfill.\n*   **Research local resources.** Contact a local nonprofit or organization that helps individuals with short-term financial concerns. If you're unable to afford groceries for the month, reach out to a local food pantry. You can call 311 to find out about local services or do an online search for resources in your area. If you think you may need longer-term help, look into general financial assistance programs.\n*   **Talk to your job's human resources department.** Your employer may provide short-term loans to employees. Larger organizations may have short-term financial resources available or guidance on how to connect with organizations within your city or town that may be able to help you.\n*   **Explore early payday apps.** These may be offered by your employer, an online bank or other companies. Early payday apps typically provide a portion of your pay before your payday or a service that allows you to take small advances on your future income. While not a long-term solution, early payday apps offer a lower-cost alternative to payday loans.\n*   **Borrow from your credit card.** If you have credit available on your credit card and know you'll be able to pay off the amount you need fairly quickly, you may consider a credit card cash advance. Before using this option, check to see what interest you'll pay on the advance, since many cards charge higher interest on cash advances than on regular purchases.\nBefore letting fear impact your decision, take a step back to review your options and do some research. In addition to the above options, this could include reaching out to see if there's a way to negotiate the terms of your unexpected bill or working out a payment plan. If you have some time to take action, consider selling items you no longer need, such as lightly worn clothing items, exercise gear or tools. Or pick up a side hustle to help tide you over. Staffing a one-time event, participating in a focus group, or offering services such as cleaning, cooking, online tutoring or pet sitting are all potential options. END
 TITLE: How to Avoid Payday Loans CONTENT: How Does a Payday Loan Affect Your Credit?\n------------------------------------------\nPayday loan companies don't typically check your credit or report to the credit bureaus, so if you take out a payday loan and pay it back as agreed, you may see no change to your credit scores.\nHowever, if you're unable to abide by the loan's terms and stop repaying your loan, the lender may turn over your account to a collection agency, and that account will likely appear on your credit report and have a negative impact on your credit scores. END
 TITLE: How to Avoid Payday Loans CONTENT: How to Deal With Existing Payday Loan Debt\n------------------------------------------\nIf possible, try to negotiate with your lender before allowing your account to become past due. If you're already past that point, speak with your lender to find out if there are any plans to help you get back on track. Many states require payday lenders to provide extended payment plans (EPPs). This agreement extends your loan repayment period and may lower the monthly amount due. Other options that could help you pay off your payday loan include a debt consolidation loan or debt management plan, which is a more in-depth debt payoff plan you can get through a certified credit counselor. END
 TITLE: What Is Teacher Loan Forgiveness? CONTENT: How Does Teacher Loan Forgiveness Work?\n---------------------------------------\nThere's more than one way to achieve student loan forgiveness for teachers, but the teacher loan forgiveness program is the most prominent. The program is designed for qualified teachers who have eligible loans and have taught at an eligible school or schools for at least five consecutive years.\nThis time requirement is half the time it takes to qualify for forgiveness under the Public Service Loan Forgiveness (PSLF) program, which is another way teachers can achieve forgiveness on their student loans.\nThe amount of student loan debt that you can get discharged under the teacher loan forgiveness program depends on the subject area you teach and the school level. The $17,500 maximum benefit is reserved for select math, science and special education teachers, while teachers who teach other subjects can receive up to $5,000. END
 TITLE: What Is Teacher Loan Forgiveness? CONTENT: Who Qualifies for Teacher Loan Forgiveness?\n-------------------------------------------\nAs with other student loan forgiveness programs, there's a lot of fine print you'll want to understand before you submit your application. Here's how to tell if you meet the basic eligibility requirements:\n*   You have an eligible direct subsidized Loan, direct unsubsidized loan, a subsidized federal Stafford loan or an unsubsidized federal Stafford loan.\n*   You work in an elementary school, secondary school or educational service agency that serves low-income students.\n*   You must not have held an outstanding balance on direct loans or any Federal Family Education Loans (FFEL) as of October 1, 1998. Additionally, teacher loan forgiveness candidates must not have held a direct loan or FFEL before October 1, 1998. In order to qualify for forgiveness, you must first pay off loans borrowed before this date.\n*   You must meet the qualifications of a qualified teacher, which include attaining at least a bachelor's degree and receiving full state teacher certification. Plus, you cannot have had certification or licensure requirements waived on an emergency, temporary or provisional basis.\nNote that if you've defaulted on a college loan, you won't be eligible for teacher loan forgiveness until arrangements have been made to repay the loan, suitable to the approval of the student loan provider.\nIf you're a teacher who did not complete a full school calendar year of instruction, the year may ultimately count toward your teacher loan forgiveness program under the following conditions:\n*   You finished at least half of the qualifying school's academic year.\n*   Your school or educational service agency agrees that the contract requirements for the academic year were completed, and you're in good standing.\n*   You can still qualify for a teacher loan forgiveness program if you spent the time away from school on at least a half-time basis, in a qualified area of education instruction (usually the course of study category the teacher is instructing at a qualified school or educational service agency).\n*   You can also qualify for loan forgiveness with a medical or health condition recognized under the Family and Medical Leave Act of 1993, or if you're a member of the U.S. armed forces or a U.S. military reserve member called for duty for more than a 30-day period.\nThere are also other requirements based on where you teach and whether or not you're new to the profession. Read more about the eligibility requirements on the Federal Student Aid website. END
 TITLE: What Is Teacher Loan Forgiveness? CONTENT: Perkins Loans Teacher Forgiveness Programs\n------------------------------------------\nTeachers are also eligible for the federal Perkins Loans forgiveness program. You can can have Perkins loans forgiven or reduced if you meet certain guidelines:\n*   Teach at a school that serves students from low-income families.\n*   Be a special education teacher.\n*   Teach in an area where the state has a shortage of qualified teachers, such as math, science, foreign languages or bilingual education.\nPerkins loan forgiveness can eliminate a substantial amount of student loan debt—up to 100% of your loan. The program is based on an incremental model, with the loan forgiven steadily over a five-year basis. Perkins loan forgiveness provides teachers loan relief in the following incremental fashion:\n*   **Year 1**: 15% of a Perkins student loan is forgiven.\n*   **Year 2**: Another 15% of a Perkins student loan is forgiven.\n*   **Year 3**: 20% of a Perkins student loan is forgiven.\n*   **Year 4**: Another 20% of a Perkins student loan is forgiven.\n*   **Year 5**: The remaining 30% of the Perkins student loan is forgiven.\nOne thing to keep in mind if you're currently a student or considering going back to school is that Perkins Loans are no longer available as of September 2017. END
 TITLE: What Is Teacher Loan Forgiveness? CONTENT: How to Apply for Teacher Loan Forgiveness\n-----------------------------------------\nIf you believe you qualify for the teacher loan forgiveness program, you'll need to [submit an application](;shortName=teachfrgv&localeCode=en-us) to each of your loan servicers after you've taught for at least five years. The chief administrative officer at your school or educational service agency will certify on the application that you've met the requirements.\nIf you have Perkins loans, they're administered by colleges and universities themselves instead of the Department of Education. So you'll need to contact the school where you received the student loan to process your application. END
 TITLE: What Is Teacher Loan Forgiveness? CONTENT: Other Ways to Get Help With Student Loans\n-----------------------------------------\nThere are two other forgiveness programs you can take advantage of as a teacher: Public Service Loan Forgiveness (PSLF) and state-sponsored programs. If you're working toward forgiveness but struggling to make your payments right now, you can also get on an income-driven repayment plan. END
 TITLE: What Is Teacher Loan Forgiveness? CONTENT: Make Payments on Time to Protect Your Credit Score\n--------------------------------------------------\nIf you're having a hard time paying your student loan bill every month, it may be tempting to skip a payment or two while you get back on your feet financially. However, if you let your student loans go 30 days or more without payment, the lender or servicer can report that to the credit bureaus, which is likely to damage your credit score.\nA low credit score will make it more difficult to get credit in the future, including student loan refinancing. Check your credit score often to always have an idea of where you stand, and also contact your lender or servicer if you're having trouble. It's in both your best interest to work toward a solution that ensures payment and doesn't hurt your credit. END
 TITLE: What Is an Ideal Debt-to-Income Ratio? CONTENT: How Does Debt-to-Income Ratio Work?\n-----------------------------------\nTo calculate your DTI ratio, add up your recurring monthly debt payments (including credit card, student loan, mortgage, auto loan and other loan payments) and divide the sum by your gross monthly income (the amount you make each month before taxes, withholdings and expenses).\nHere's an example of what your monthly debt obligations might look like:\nDebt\nMonthly payment\nMortgage (includes property tax & homeowners insurance)\n$1,150\nStudent loan\n$380\nCredit card No. 1 (minimum payment)\n$170\nCredit card No. 2 (minimum payment)\n$120\nAuto loan\n$480\n**Total**\n**$2,300**\nIf your total monthly debts as listed above were $2,300 and your gross monthly income was $5,200, your DTI ratio would be $2,300 divided by $5,200, or 0.44. DTI is commonly expressed as a percentage, so multiply by 100 to get 44%.\nMost lenders use this figure, sometimes referred to as your back-end DTI, along with your credit score to gauge your creditworthiness.\nMortgage lenders considering loan applications may factor in a third measurement, known as front-end DTI. This is the portion of your gross income that goes toward housing costs—rent or mortgage payments, property taxes, homeowners insurance, condo or homeowners association fees, and so on. Taking another look at the example above, if your housing costs are $1,150 and your gross monthly income is $5,200, your front-end DTI would be $1,150 divided by $5,200, or 22%. END
 TITLE: What Is an Ideal Debt-to-Income Ratio? CONTENT: What Should My Debt-to-Income Ratio Be?\n---------------------------------------\nThere is no \"perfect\" DTI ratio that all lenders require, but lenders tend to agree a lower DTI is better. Depending on the size and type of loan they're issuing, lenders set their own limits on how low your DTI must be for loan approval. END
 TITLE: What Is an Ideal Debt-to-Income Ratio? CONTENT: Debt-to-Income Ratio and Mortgages\n----------------------------------\nYour DTI ratio is a major factor in the mortgage approval process. There are many different types of mortgages, and each has its own DTI requirements. Knowing your DTI ratio can help you narrow down which might be best for you. END
 TITLE: What Is an Ideal Debt-to-Income Ratio? CONTENT: Does Debt-to-Income Ratio Affect Your Credit Score?\n---------------------------------------------------\nDTI ratio has no effect on your credit score: Credit scoring systems such as the FICO® Score☉ and VantageScore® calculate credit scores using your history of credit usage and repayment as compiled in credit reports at the national credit bureaus (Experian, TransUnion and Equifax). Because the bureaus do not track your income, credit scoring software cannot calculate DTI ratios or factor them into your scores.\nDebt, of course, influences both your DTI ratio and your credit score. Among the debt-related factors that influence credit scores are:\n*   Overall outstanding debt\n*   Credit mix—the number and variety of loans and credit accounts you're managing\n*   Credit utilization—the percentage of your credit card borrowing limits represented by your outstanding credit card balances\n*   Payment history—how consistently you've kept up with your debt payments, making them on time and paying them in full each month END
 TITLE: What Is an Ideal Debt-to-Income Ratio? CONTENT: How Can I Improve My Debt-to-Income Ratio?\n------------------------------------------\nImproving your debt-to-income ratio means lowering it, and doing so requires some combination of two things: reducing your monthly debt and increasing your income.\nOn the debt-reduction side of the equation, your options may be limited. Long-term student loan or mortgage payments may not be something you can easily change. If you have credit card debt, however, paying down your balances will reduce your minimum monthly payments and lower your DTI ratio. If you've got a personal loan or car loan, waiting until it's paid off before you seek a mortgage will also let your application reflect a lower DTI ratio.\nWith respect to income, negotiating a better salary or trading up to a better paying job is easier said than done (and if it were possible, you'd have probably done so already, without needing inspiration in the form of your DTI). If you feel you deserve a raise and can document the reasons why, it can't hurt to ask. Otherwise, consider pursuing a \"side hustle\" that earns you some extra income.\nLenders consider debt-to-income ratio an important metric for gauging your ability to handle additional loan payments. Calculating your own DTI ratio can help you understand your eligibility for various loans and can guide your loan-application process accordingly. END
 TITLE: Why Getting a New Credit Card Is a Good Idea CONTENT: You Can Increase Your Credit Card Rewards Earnings\n--------------------------------------------------\nIf you haven't gotten a new rewards card in a while, it's worth taking another look at what's out there. The credit card landscape has become increasingly competitive in recent years, with issuers adding all sorts of intro bonuses and perks to sweeten the pot. Many travel rewards cards now offer benefits like fee credits for trusted traveler programs. Intro bonuses are impressively high, and there are a number of new cards that let you maximize your rewards earnings based on how you spend.\nThe Chase Sapphire Preferred® Card, for example, is offering a 100,000 point intro bonus after you spend $4,000 in purchases on the card within 3 months of opening the account. That's worth $1,250 in travel purchases.\nThe Capital One Venture Rewards Credit Card not only lets you earn 2 miles per $1 spent on every eligible purchase, it also offers a $100 application fee credit for Global Entry or TSA Pre-Check once every four years.\nTo find the best rewards cards, check out the best rewards cards available through Experian CreditMatch™.\nYou Can Save Money on Qualifying Interest\n-----------------------------------------\nIf you typically carry a balance on your credit cards, it's smart to shop for the card with the lowest interest rate possible. Your credit scores may have improved since the last time you applied for a card, which means you probably qualify for cards at lower rates now. Or you may be able to take advantage of a promotional rate that can save you money as you pay down your debt.\nFor example, a number of cards currently offer generous introductory 0% annual percentage rate (APR) financing. That means you can put your spending on one of these cards and pay off the debt during a promotional financing period without paying any interest.\nFind some of the best low interest credit cards for your needs.\nUnsure how to determine whether you qualify for a credit card for your needs? Sign up for Experian's CreditMatch™ for free. It will pair you with the credit cards you qualify for based on your FICO® Score☉ . Once you are matched with cards, you can compare them by features and card type.\nYou Can Improve Your Credit Scores\n----------------------------------\nOne of the common myths associated with opening a new credit card is that it will hurt your credit score. In fact, opening a new card—whether your credit score is already excellent or needs a little work—can actually help your credit in the long run. That's because a new line of credit can actually improve your credit utilization ratio, or the amount of credit you use in relation to the amount of credit you have available to you. This is one of the most important factors in calculating your credit scores.\nYour credit utilization ratio is calculated by adding all your credit card balances at any given time and dividing that by your total credit limit. For example, if you typically have total balances of about $2,000 each month, and your total credit limit across all your cards is $10,000, your utilization ratio is 20%. But if you add another card to your wallet (increasing your total credit limit) but keep your spending the same, your utilization ratio will decrease.\nExperts suggest keeping your utilization ratio below 30% and, for the best scores, below 6%.\nYou can get your FICO® Score from Experian to see where your utilization ratio currently stands.\nNow, if you're concerned that a hard inquiry on your credit report will drag your credit scores down, take comfort. Typically, a hard inquiry for a new credit card only sets your score back a few points for a short period of time, generally less than 12 months. Your score rebounds from a hard inquiry pretty quickly. As long as you're not applying for multiple new lines of credit at once and paying your bills on time, your credit scores are safe.\nWhat's more, a diversity of different types of credit on your credit report is also a good thing. Credit mix is one of the factors that go into determining your credit scores, and if you can demonstrate that you can handle a variety of accounts, your scores will benefit. END
 TITLE: Why Getting a New Credit Card Is a Good Idea CONTENT: The Chase Sapphire Preferred® Card, for example, is offering a 100,000 point intro bonus after you spend $4,000 in purchases on the card within 3 months of opening the account. That's worth $1,250 in travel purchases. END
 TITLE: Why Getting a New Credit Card Is a Good Idea CONTENT: You Can Save Money on Qualifying Interest\n-----------------------------------------\nIf you typically carry a balance on your credit cards, it's smart to shop for the card with the lowest interest rate possible. Your credit scores may have improved since the last time you applied for a card, which means you probably qualify for cards at lower rates now. Or you may be able to take advantage of a promotional rate that can save you money as you pay down your debt.\nFor example, a number of cards currently offer generous introductory 0% annual percentage rate (APR) financing. That means you can put your spending on one of these cards and pay off the debt during a promotional financing period without paying any interest.\nFind some of the best low interest credit cards for your needs.\nUnsure how to determine whether you qualify for a credit card for your needs? Sign up for Experian's CreditMatch™ for free. It will pair you with the credit cards you qualify for based on your FICO® Score☉ . Once you are matched with cards, you can compare them by features and card type. END
 TITLE: Why Getting a New Credit Card Is a Good Idea CONTENT: You Can Improve Your Credit Scores\n----------------------------------\nOne of the common myths associated with opening a new credit card is that it will hurt your credit score. In fact, opening a new card—whether your credit score is already excellent or needs a little work—can actually help your credit in the long run. That's because a new line of credit can actually improve your credit utilization ratio, or the amount of credit you use in relation to the amount of credit you have available to you. This is one of the most important factors in calculating your credit scores.\nYour credit utilization ratio is calculated by adding all your credit card balances at any given time and dividing that by your total credit limit. For example, if you typically have total balances of about $2,000 each month, and your total credit limit across all your cards is $10,000, your utilization ratio is 20%. But if you add another card to your wallet (increasing your total credit limit) but keep your spending the same, your utilization ratio will decrease.\nExperts suggest keeping your utilization ratio below 30% and, for the best scores, below 6%.\nYou can get your FICO® Score from Experian to see where your utilization ratio currently stands.\nNow, if you're concerned that a hard inquiry on your credit report will drag your credit scores down, take comfort. Typically, a hard inquiry for a new credit card only sets your score back a few points for a short period of time, generally less than 12 months. Your score rebounds from a hard inquiry pretty quickly. As long as you're not applying for multiple new lines of credit at once and paying your bills on time, your credit scores are safe.\nWhat's more, a diversity of different types of credit on your credit report is also a good thing. Credit mix is one of the factors that go into determining your credit scores, and if you can demonstrate that you can handle a variety of accounts, your scores will benefit. END
 TITLE: What to Do If Your Loan Is Denied CONTENT: Understanding Why Your Loan Was Denied\n--------------------------------------\nTwo primary factors lead lenders to deny loan applications: problems with credit and problems with income. In some situations, however, other factors may also contribute to the decision.\n### Credit\nYour credit history and credit scores are primary factors lenders consider when you submit a loan application. If lenders see any significant negative items on your credit report or other red flags, they may determine that as a borrower, you're too risky to approve at this time.\nCommon negative items that can cause a denial include:\n*   Bankruptcy\n*   Foreclosure\n*   Collection accounts\n*   Delinquent payments\n*   High credit card balances\n*   Too many recent credit inquiries\n*   Not enough credit history\nYou can also be denied if your credit score is lower than the lender's minimum requirement. To prevent this from happening again, make sure you know your credit scores and shop around for loans that are targeted to your credit range.\nIf you are not approved for a loan, you will receive what's called an adverse action letter from the lender explaining why.\nBy law, you're entitled to a free copy of your credit report if a loan application is denied. The lender should provide instructions in your declination letter for requesting a free report from the credit reporting company the lender used to make its decision.\nIf you don't receive these instructions, you can still request your report directly from the credit reporting agency listed on your declination letter. With Experian, for instance, the Report Access page offers instant access to your report through a secure, encrypted connection.\n### Income\nIf your lender denies your loan application based on income, two issues are the likely culprits. The first is that your income doesn't meet the lender's minimum requirement. Unfortunately, most lenders don't publish this information, so it's hard to know if your income is high enough to garner loan approval.\nThe other reason is that your debt-to-income ratio is too high. You can calculate this ratio by dividing your total monthly debt payments by your monthly gross income.\nFor example, let's say you earn $5,000 per month and have the following monthly debt payments:\n*   **Mortgage**: $1,200\n*   **Student loans**: $300\n*   **Auto loan**: $350\n*   **Credit cards**: $150\nYour total monthly debt obligation is $2,000, giving you a debt-to-income ratio of 40%. If you applied for a mortgage loan, the maximum ratio to get a qualified mortgage is 43%, but many lenders prefer a ratio of 36% or lower.\nWith other loan types, the maximum debt-to-income ratio varies by lender. But if yours is too high, it's a sign that the lender believes you may have a tough time keeping up with all your payments.\nTo improve your chances of getting approved the next time you apply, work on paying down some of your debts.\n### Other Reasons for Denial\nWhile your credit and income are the primary factors lenders consider, they don't tell the whole story. As such, you may be denied based on other reasons, such as your employment history, residence stability, and cash flow or liquidity problems.\nWhile you may not have a lot of immediate control over some of these issues, take the reasons seriously and wait until you're in a better position to apply again. END
 TITLE: What to Do If Your Loan Is Denied CONTENT: Getting Denied Does Not Hurt Your Credit Score\n----------------------------------------------\nWhen a lender or creditor asks a credit bureau to look at a consumer's credit report, an inquiry is posted to the consumer's credit report. A credit inquiry can be hard or soft. Almost every time you apply for credit, the lender will run a hard credit inquiry. For most people, a hard inquiry knocks less than five points off their credit score, but that little dip will not last long—24 months at the most.\nApproval decisions for loans are made by lenders, not any of the three nationwide credit reporting companies, Experian, Equifax, and TransUnion. Also, your credit report won't indicate whether a loan application was denied, so getting denied won't impact your credit score in any way. END
 TITLE: What to Do If Your Loan Is Denied CONTENT: Getting a Loan When You Have Bad Credit\n---------------------------------------\nWhether you need money to finance a large purchase, cover living expenses or consolidate debt, it's possible to do so with bad credit.\nSpecifically, some lenders specialize in working with borrowers with bad credit and have less stringent credit requirements. The catch is that your interest rate will generally be higher than what you'd qualify for with fair, good or excellent credit.\nAnother way to borrow with bad credit is to get someone with good credit to apply with you as a cosigner. Some lenders allow cosigners to improve your chances of getting approved. Even if you can get approved on your own, enlisting a cosigner with a great credit history can help you score a lower interest rate.\nKeep in mind, though, that cosigners are equally responsible for paying off the debt. So if you default, it could damage both your and their credit history.\n> Find the best personal loans in Experian CreditMatch™. END
 TITLE: What to Do If Your Loan Is Denied CONTENT: Building Your Credit Before Applying Again\n------------------------------------------\nWhile it's possible to get approved for a loan with less than stellar credit, you may be better off waiting so you can get better interest rates and save money.\nFor example, let's say you want to get a personal loan for $5,000. If you have fair credit, you might qualify for an interest rate of 25%, while someone with good credit might get an interest rate of 15%. Over three years, you'd pay $2,157 in interest, while they'd pay $1,240.\nIf you can wait until you can improve your credit scores before applying for the loan, it could save you on monthly payments and interest charges over the life of the loan.\nTo improve your credit, focus first on the reasons included in your declination letter. Take advantage of your free credit report and check to see if there's anything else you need to address.\nRegardless of the reason for your denial, focus on practicing good credit habits:\n*   **Make your monthly payments on time.** Your payment history is the most important factor in your credit score, and payments that are late 30 days or longer show up on your credit report.\n*   **Keep your credit card balances low.** Your credit utilization—your total credit card balances divided by their total credit limits—is another important factor in your credit score. If you have high balances, pay them down as quickly as possible, then keep them low going forward.\n*   **Avoid too many hard inquiries.** If your loan application was denied, it can be tempting to apply until you get approved. But while each hard inquiry doesn't have a big impact on your credit on its own, multiple in a short period can be a red flag for lenders.\n*   **Check your credit reports.** Review your credit reports regularly to make sure they are accurate. Get your free credit report from Experian here.\nImproving your credit can take time. But if you do it right, you could save hundreds of dollars or more the next time you apply for a loan. END
 TITLE: How to Get a Debt Consolidation Loan CONTENT: Is a Debt Consolidation Loan Right for You?\n-------------------------------------------\nThere are two main reasons people consolidate debt: to reduce the number of payments they make each month and to save money on interest over the life of their loans.\nIf you have a lot of high-interest debt, often from credit cards, you might consider a debt consolidation loan to reduce the total amount you pay over time. Access to a debt consolidation loan with even a slightly lower interest rate than the one you're currently paying can help shave thousands of dollars off the total amount you repay.\nYou may also consider consolidation if you're having a hard time managing multiple payments. Instead of paying several different credit card bills, debt consolidation lets you pull all those debts into one place, leaving you with only one monthly payment. This can ease your mind and help you avoid missing a payment—which can have a serious impact on your credit scores.\nSince a debt consolidation loan is essentially just a personal loan that you use to assume all your existing debt, it comes with multiple benefits and can be used as you wish. END
 TITLE: How to Get a Debt Consolidation Loan CONTENT: Before you apply for any debt consolidation loans, start by taking an inventory of your current debt and interest rates. List out how many debts you're paying each month, and calculate the total dollar amount of debt you need to consolidate. This will help you understand how much you need to borrow to consolidate your existing loans and give you an idea of the interest rate you need in order to save money moving forward.\nNext, get a copy of your credit reports and review them for accuracy. You should also understand your credit scores, because debt consolidation lenders will review your credit reports and scores when deciding whether to approve you for a loan. (Familiarize yourself with credit scoring ranges and what is considered a good score; typically, anything above 700 in the FICO® Score☉ model is considered good.) Your scores will also help lenders determine what APR you qualify for.\nIf your score is in the good or excellent range, you probably have a strong chance of getting approved for a personal loan with a low APR. But if your credit is in the fair to poor range, it may be a little trickier to consolidate your debts. However, there are loans geared to people with less established credit or lower credit scores. Just keep in mind that applicants with lower credit scores are often approved for higher interest rates on their new debt, so it's important to pay attention to the rates when you apply.\nFinally, shop around for a debt consolidation loan and compare terms. Your goal is to secure the lowest interest rate possible, but you should also make sure you can afford the monthly payment and pay attention to any other fees the lender may charge. You may also want to consider finding a lender that will send the money directly to your other creditors, rather than sending you a check that can tempt you into spending the cash. END
 TITLE: How to Get a Debt Consolidation Loan CONTENT: What to Keep in Mind When Shopping for a Debt Consolidation Loan\n----------------------------------------------------------------\nMake sure you get the best loan possible when consolidating debt by following these tips:\n### 1\\. Get the Best Terms Possible\nSince a debt consolidation loan is supposed to save you money, it's important to make sure your new interest rate is lower than your existing rates. Review all your borrowing options before picking a debt consolidation loan, as some may offer better terms and benefits than others. In addition to your own bank, check out other banks and credit unions, as well as Experian's marketplace for a full selection of debt consolidation loans.\n### 2\\. Look at the Lifetime Cost of the Loan\nThis calculation will help you understand how much money you can save in interest by using a debt consolidation loan.\nSay you have $5,000 in credit card debt with an average APR of about 25%. Over 36 months, your monthly payment is approximately $240 and you will pay a total of $2,500 in interest. If you consolidated this debt into a new loan with an average APR of 17% over 36 months, the total amount you'd pay toward interest would drop to around $1,700 and your monthly payment would come down to $200. Over the life of this loan, you will have saved approximately $1,440 in interest.\nPersonal Loan Calculator\n------------------------\n†The information provided is for educational purposes only and should not be construed as financial advice. Experian cannot guarantee the accuracy of the results provided. Your lender may charge other fees which have not been factored in this calculation. These results, based on the information provided by you, represent an estimate and you should consult your own financial advisor regarding your particular needs.\n### 3\\. Beware of Penalties and Other Fees\nMany loan products come with origination fees or prepayment penalties that could be quite steep. If you hope to pay off your loan ahead of schedule, one with a prepayment penalty is not right for you. Shopping around before selecting a loan will help you determine which one has the right terms for you. END
 TITLE: How to Get a Debt Consolidation Loan CONTENT: What If Your Loan Application Gets Denied?\n------------------------------------------\nIf you've been denied for a debt consolidation loan, here are a few options that may help:\n### 1\\. Try Requesting a Lower Amount from the Lender\nYou may have been denied because the lender felt there was too much risk in issuing you the amount you asked for. By lowering the amount, you lower the risk, and the lender might be more open to approving you. In this case, you may still have multiple payments, but the debt consolidation loan may cover a good majority of them.\n### 2\\. Consider a Debt Management Plan\nWith a debt management plan, or DMP, a credit counselor can help create a plan that outlines how you will repay your existing debt. Once you agree to this plan, you will pay the credit counseling organization directly and they will make your monthly payments according to the repayment plan you agreed on.\nTo find a reputable credit counselor, look for one that is accredited by the National Foundation for Credit Counseling or the Financial Counseling Association of America. The U.S. Department of Justice also maintains a state-by-state list of approved credit counseling agencies. For more information on how to choose a credit counselor, check out these suggestions from the Federal Trade Commission.\n### 3\\. Consider an Alternative Lender\nSome lenders use information other than your credit history when considering you for a new loan. Some companies consider education, employment, income and other aspects of your background when making a decision. If you have poor credit and cannot get approved by a conventional lender, you may find luck with a company like this. END
 TITLE: How to Qualify for New Credit with No Credit Score CONTENT: What Is a Credit Score?\n-----------------------\nUnderstanding what a credit score is, is important because lenders, credit card issuers and car dealers use these scores to decide whether to approve you for a credit card or loan. A credit score is a three-digit number that's calculated by applying a mathematical algorithm to the information in one of your three credit reports, which are generally updated each month. Your credit report includes all the credit accounts you've opened, as well as your payment history with these accounts.\nCredit scores fall into a range. While there are many different credit-scoring models, the FICO® Score☉ is one of the most commonly used. FICO® scores range between 300 and 850. A score of 700 or above is generally considered good, while a score of 800 or above is considered excellent. Most credit scores, however, fall between 600 and 750. END
 TITLE: How to Qualify for New Credit with No Credit Score CONTENT: Why Don't I Have a Credit Score?\n--------------------------------\nA person may not have a credit score for many reasons, but usually, it's the result of having a \"thin credit file.\" A thin credit file means having very few—typically four or fewer—credit accounts listed on a credit report. Banks and other lenders can't calculate a credit score from a thin file because there is not enough information in a user's credit history to do so. You might have a thin file if you are young and haven't established any credit, or if you recently moved to the United States from another country.\nAnother reason you may not have a credit score is that there is not much activity on your credit reports. Maybe you haven't applied for any new credit for a long time, or you have haven't used any of your credit cards in more than six months. Most credit scoring models pay attention to recent or current credit activity, so be sure to use your cards once in a while, even if you're just charging a small amount and paying it off right away. (And remember, debit card activity is not reported on your credit reports.)\nNot having a credit score can lock you out of traditional, low-cost credit products and other financial resources. Without these options, many feel that their only choice is to turn to payday loans, car title loans or rent-to-own businesses, which can trap them in a cycle of high-cost debt. Here's the good news: It is possible to be approved for new credit without a credit score. END
 TITLE: How to Qualify for New Credit with No Credit Score CONTENT: What Are My Credit Options with No Credit Score?\n------------------------------------------------\nCredit options for people with no credit score do exist—you just need to know where to look. Here are five options to consider if you need help building your credit:\n*   **Secured credit cards** are credit cards that require you to deposit your own money as collateral for the card. That deposit usually serves as your credit limit. So if you deposit $300, for example, you can spend up to that amount on the card. Secured credit cards might be right for you if you have a limited credit history and are looking to build your credit.\n*   **Credit builder loans** are loans in which the lender holds the total loan amounts in a savings account while you make payments on it. Once you've paid off the credit builder loan, you receive access to the funds.\n*   **Store credit cards,** or retail cards, are credit cards offered by a retailer. Usually, such cards can only be used to buy things at that store. Store credit cards also typically come with a lower credit limit and a higher annual percentage rate than other credit cards.\n*   **Authorized users** can be added to a credit card account, which allows them to use the credit card but not be the primary responsible party for making payments on the account. Becoming an authorized user can help you start building credit, but you need to make sure that creditors report your authorized user account to the credit reporting agencies. You can become an authorized user by asking a family member to add you to their credit card account.\n*   **Cosigning** is when someone, usually a relative or friend, cosigns a loan to help you establish a credit history. The consigner must have strong credit scores, and they are likely able to qualify for better interest rates and credit terms than you would have yourself. Cosigning can have risks, especially if you fail to make payments on the loan, which can affect both of your credit scores as a result.\nExperian Boost™† Can Help\n-------------------------\nThere is a way for you to improve your credit scores by factoring in previously uncounted payments, such as utility and cell phone bills, through a new, free product called Experian Boost.\nThrough this new opt-in product, consumers can allow Experian to connect to their bank accounts to identify utility and telecom payment history. After a consumer verifies the data and confirms they want it added to their Experian credit file, an updated FICO® Score will be delivered in real time.\nVisit experian.com\/boost now to register. By signing up for a free Experian membership, you will receive a free credit report and FICO® Score immediately and will be one of the first to experience Experian Boost.\nBottom Line\n-----------\nYou have options if you are just starting to build your credit. Being approved is the first step, but managing your credit well is the next and most important step during your lifetime. Credit reports reflect your credit history and help lenders decide if they can trust that you will manage your debts over time. If you don't pay your debts on time, you will lose that trust and your credit score may suffer. Monitor your credit report for free using the Experian Financial Profile tool. END
 TITLE: Can Debt Consolidation Affect Your Credit Score? CONTENT: Debt consolidation has the potential to hurt your credit score in several ways, depending on which method you use. For people using a debt management plan for consolidation, it is important to fully understand your agreement with your credit counselor. It is also important to know whether you are working with a credit counselor from a not-for-profit organization, or if you are working with a for-profit debt settlement\/consolidation firm.\n### Credit Counselors and Debt Management Plans\nCredit counseling organizations are typically non-profits that exist to advise people on how to manage their money and establish budgets. Sometimes, credit counselors work with you to develop a debt management plan and can also help you make your payments.\nAlthough debt management plans do not appear on your credit reports, credit counselors may sometimes require that you close your other credit accounts to ensure you don't spend outside of your repayment plan. Closing revolving credit accounts will increase your overall credit utilization ratio—which will impact your credit scores.\nIt is important to make sure that your credit counseling organization makes all payments for you on time. Credit counseling organizations typically make the agreed-upon debt payments for you each month, and so the responsibility is on them to make sure they pay each bill on time.\nPayment history is the most important factor in calculating your credit score—accounting for 35% of your FICO® Score☉ —and it is important to avoid any late payments being recorded on your credit file.\n### Debt Consolidation or Debt Settlement Companies\nDebt Consolidation Loans\nWith a debt consolidation loan, it is important to first know what range your credit score falls into. For people with a \"poor\" credit score it may be difficult to get approved for a new loan to use for consolidation. People with \"fair\" to \"exceptional\" credit scores will have an easier time getting approved for a new loan, and will also be eligible for a lower interest rate.\nKnowing your credit score before you apply for debt consolidation loans will help you choose the right loan and avoid incurring multiple hard inquiries in a short period of time. END
 TITLE: Can Debt Consolidation Affect Your Credit Score? CONTENT: Can Debt Consolidation Help My Credit Score?\n--------------------------------------------\nWhile debt consolidation is mainly a method of lowering or eliminating mounting debt, it can also have a positive effect on your credit score. Beyond helping you reduce your number of monthly debt payments and save on interest over the life of your loans, debt consolidation can help you eliminate or drastically reduce your total debt over time.\nWhen you consolidate revolving debt—like credit card accounts—you also will be working toward reducing your utilization ratio—one of the most important factors in calculating your credit score. Your credit utilization ratio is calculated by comparing how much available credit you have and how much you use each month. Credit utilization accounts for 30% of your credit score.\nImagine if you have one credit card with a limit of $10,000. If the balance on that card is $5,000, your credit utilization ratio is 50%. It is commonly recommended to keep your credit utilization under 30%. As you roll revolving credit debt into a debt consolidation loan, and if you keep your balances on those accounts low, this can help to reduce your credit utilization and in time help boost your credit score. END
 TITLE: Can Debt Consolidation Affect Your Credit Score? CONTENT: Medical Debt Consolidation\n--------------------------\nWhile you can consolidate many different types of existing debt, it is important to first know what the interest rate is on your current loan in order to see if debt consolidation will be helpful.\nIn the case of most medical debt, consolidation might not be the answer if you are hoping to save money on interest payments. Medical debt typically has a very low interest rate, and in some cases no interest.\nBy rolling medical debt into a debt consolidation loan or by paying for it with a low-interest credit card, you would have to pay the interest on new account—which in some cases could be more than the original rate.\n> Find the best low APR credit cards in Experian CreditMatch™.\nIn 2017, the three major credit bureaus added a policy that gives consumers a 180-day grace period to resolve outstanding medical debt before it appears as past due on their credit reports. This grace period is intended to give people extra time to settle any issues with insurance or to make a payment toward their debt. END
 TITLE: Can Debt Consolidation Affect Your Credit Score? CONTENT: Student Loan Debt Consolidation\n-------------------------------\nDepending on what type of student loans you have, there are various consolidation options available. But it is important to be careful of restricting yourself when consolidating student loans. Depending on whether you have private or government-backed loans, consolidating can bind you to a higher monthly payment or longer term. END
 TITLE: Can Debt Consolidation Affect Your Credit Score? CONTENT: Federal Student Loans\n---------------------\nFederal student loans can be consolidated through the Federal Direct Consolidation Loan Program. Your credit score is not considered for this program and borrowers that are up to date on their payments are eligible.\nThe main benefit of consolidating government-backed student loans is streamlining the payment process. The interest rate for your new consolidated loan will be based on what your past interest rates were and will most likely not be lower. But having one payment versus several is a helpful way to make sure that you don't miss a payment and harm your credit score in the future. END
 TITLE: Can Debt Consolidation Affect Your Credit Score? CONTENT: Private Student Loans\n---------------------\nThe process for consolidating private loans is slightly different than with government-backed ones. To do this, you will essentially be rolling all of your existing private student loans into a single new account and will pay that new account moving forward.\nDepending on your creditworthiness, this account will have a lower interest rate which will help you save money over the life of your loan. You will also be able to make a single payment each month, taking away the hassle of worrying about late payments.\nYou can also roll public student loans into this new loan, however, you can not consolidate private loans with a Federal consolidation program. If you have a good credit score, you may be able to consolidate your existing student debt into a new loan with a lower interest rate. By rolling your public loans into this new account you would pay the same lower interest rate across all of your student debt.\nWhile paying lower interest might be appealing, consolidating federal student debt into a private loan has drawbacks. Federal student loans come with certain protections—like forbearance and deferral—that you can use to pause payment of your loan if for some reason you are unable to pay. In addition to those advantages, certain federal loans are eligible for income-based repayment and loan forgiveness. Private student loans often do not have the same protections, and once a federal loan is consolidated into a private loan there features will no longer be available.\nConsolidating private student loans also will require that a lender checks your credit history. Not only will this incur a hard inquiry on your credit file, but in order to get approved and get a good interest rate on your new loan, you will want to have a decent credit score. END
 TITLE: Can Debt Consolidation Affect Your Credit Score? CONTENT: How Can I Consolidate My Debt?\n------------------------------\nThe most popular form of debt consolidation is using a newly opened low-interest loan to assume existing high-interest debt. In this scenario, you can apply for a personal loan or low-interest credit card and use the new credit to pay off their existing higher-interest debt.\n> Find the best personal loans in Experian CreditMatch™.\nAnother method of debt consolidation is using a debt management plan, in which you and a credit counselor develop and agree to a repayment plan for your debt. While this method may also help you pay off your debt, credit counselors often have certain requirements, some of which might lower your credit score.\nYou can get your credit score and find more information about your credit file by using Experian's CreditWorks. END
 TITLE: How to Get Your First Credit Card CONTENT: How Do I Get Approved for a Credit Card?\n----------------------------------------\nWhen you apply for a new credit card, the issuing bank will typically use your credit history and scores to determine whether you should be approved and what APR you should pay. Depending on the type of card you apply for, card issuers may only approve people in a certain score range and issue higher APRs to people they deem less creditworthy.\nKnowing your scores before applying for a credit card can give you an idea of which cards you may qualify for. It can also save you from racking up hard inquiries, which occur whenever someone else checks your credit. A hard inquiry, which can affect your credit scores, remains on your credit reports for up to two years.\nIn most cases, people applying for their first credit card will have little or no credit history. But if you have at least some credit history, knowing what's in your credit reports before you apply can help you maximize the potential benefits by selecting the right card. People with good credit scores may also be given lower APRs, which can help save money on interest payments over time.\nIf you have little or no credit history, using a credit card is one of the best ways to establish or build your score. While you may not be approved for a normal or premium card, there are plenty of options like secured credit cards that can serve as stepping stones to other types of credit.\nBeyond your credit reports and scores, card issuers may take into account other factors when considering you for new credit. Credit card applications will often ask for your income, assets, age, and other general information like Social Security number and contact information. END
 TITLE: How to Get Your First Credit Card CONTENT: Establishing Credit with a Secured Card\n---------------------------------------\nCredit cards are one of the best ways to establish and build your credit. But for people applying for their first card with little or no credit history, secured credit cards are a good option to help you establish your credit history.\nSecured credit cards can be used like any other credit card, but they require a security deposit upon signing up. The deposit amount can range from $200 to $3,000 and will typically be used to set your credit limit.\nOnce you start to use your secured card, most card issuers will report your account, your credit limit, and your payment history to at least one of the three major credit bureaus: TransUnion, Equifax, and Experian, the publisher of this article. This information becomes part of your credit report and is used to calculate your credit scores. However, you will want to confirm that the issuer of the secured card will report your history to the credit bureaus in order for the card to help you build credit.\nIt is important not to miss or make late payments, as your payment history accounts for 35% of your FICO® Score☉ , one of the most commonly used credit scores. You should also try to keep your credit utilization ratio—the amount of credit you use each month compared with the total amount of credit you have available to you—as low as possible.\nDepending on the secured card you get, there is a chance it will automatically convert into an unsecured card after several months of responsible use. Check out these other Experian secured card partners to find the right secured credit card for you.\n> Find the best secured credit cards in Experian CreditMatch™. END
 TITLE: How to Get Your First Credit Card CONTENT: Choosing a Retail Card for Your First Credit Card\n-------------------------------------------------\nAnother option for your first credit card is to apply for a retail or store card issued by a major retailer. These types of credit cards, which may offer some rewards, are meant to be used primarily at the stores that issue them, though sometimes they can also be used elsewhere.\nRetailers offer these cards as a way to encourage consumers to buy their products and spend money at their stores. As a result, retail cards generally have less stringent credit requirements for approval, making them an option for consumers with little or no credit history.\nWhile most retail cards can only be used to make purchases at specific stores, most of the cards are backed by a major card issuer and your payment history and balances are reported to one of the three major credit bureaus.\nRetail credit cards can come with certain pitfalls, however. They generally carry much higher interest rates than other cards, so you will want to be mindful of not carrying a balance. Retail cards also typically come with lower credit limits, so it's important to pay attention to your credit utilization ratio. Utilization is one of the most important factors in calculating your credit score—accounting for 30% of your FICO® Score—and it is recommended to keep your total ratio below 30% of your total combined credit limits (and below 10% for the best scores). END
 TITLE: How to Get Your First Credit Card CONTENT: Applying for a Student Card as Your First Credit Card\n-----------------------------------------------------\nStudent credit cards are designed for students and can be a good option for young people with little or no credit history. These cards can help students establish a credit history and build credit scores while learning how to responsibly manage their finances.\nStudent cards are generally backed by major credit card issuers, and your payment and account information is typically reported to one or more of the three major credit bureaus. END
 TITLE: How to Get Your First Credit Card CONTENT: Become an Authorized User\n-------------------------\nA primary credit card owner can add an authorized user to his or her account. Authorized users are allowed to make purchases with an account, but they cannot make changes to the account, nor are they held responsible for making payments.\nBeing an authorized user can be a good way to establish or rebuild credit because in most cases, the account activity is reported on both the primary cardholder's credit reports and the authorized user's credit reports (though you should always ask the issuer to confirm). It is also the only way someone under the age of 18 can get a credit card.\nOnce listed as an authorized user on an account, you can make purchases with the card. It's important to establish guidelines with the primary cardholder about how much you can spend. Remember, if the primary cardholder does not make payments on time or if either of you use too much credit, that can drag down the credit scores of both the primary holder and authorized user. END
 TITLE: How to Get Your First Credit Card CONTENT: Using Your Credit Cards Responsibly\n-----------------------------------\nNo matter what type of first credit card you get, it is important to use it responsibly in order to build a strong credit history and stay out of debt. Follow these tips to ensure your credit card usage helps your credit history and scores in the long run\"\n*   Pay your bills on time each month, as payment history is one of the most important factors in calculating your credit score. Consider setting up automatic payments so you're never late.\n*   Keep your credit utilization ratio or the amount of credit you use compared with the amount of credit you have available to you, below 30%. Utilization is based only on your revolving credit lines—like credit cards—and is the second most important factor in calculating your credit score.\n*   Take advantage of all the rewards and benefits your card offers to maximize the card's value.\n*   Practice responsible spending and don't spend more than you can afford to pay off at the end of every month. Using a budget is a helpful way to make sure you don't overextend yourself while using credit. END
 TITLE: Experian Forecasts the Top 5 Data Breach Predictions for 2019 CONTENT: For consumers, knowing what to do if you become a victim of a data breach can make all the difference in protecting your data and your identity. Here are Experian's five data breach predictions for 2019:\n### 1\\. Biometric Hacking\nAttackers will zero in on biometric hacking and expose vulnerabilities in touch ID sensors, facial recognition, and passcodes. Biometric data has been considered the most secure method of authentication, but it can be stolen or altered, and sensors can be manipulated and spoofed or deteriorate with too much use.\n### 2\\. Skimming\nThis is the next frontier for an enterprise-wide attack on a major financial institution's national network, and it could result in millions of lost dollars. Credit card skimming uses hidden devices designed to steal card information and passcodes. Criminals are now going after bank networks, moving beyond attacking individual ATMs by loading malware into entire computer systems.\n### 3\\. Major Attack on Wireless Carrier\nA major wireless carrier will be attacked with a simultaneous effect on both iPhones and Androids, stealing personal information from millions of consumers smartphones and possibly disabling all wireless communications in the United States. Similar to an attack on critical infrastructure, a serious disruption to a wireless network could halt business, government, and more.\n### 4\\. Cloud Breach\nIt's a matter of when, not if, a top cloud vendor breach will occur, compromising the sensitive information of major companies. The only question is how long it will take hackers to go to the cloud, affecting the world's largest companies and potentially billions of pieces of data.\n### 5\\. Gaming\nThe online gaming community will be an emerging hacker target, with cyber criminals posing as gamers and gaining access to the computers and personal data of trusting players. A cybercriminal can easily pose as a gamer or take over an avatar to infiltrate games and communities, stealing personal and credit card information and valuable game pieces and tokens. END
 TITLE: Experian Forecasts the Top 5 Data Breach Predictions for 2019 CONTENT: Increasing Identity Theft Risk\n------------------------------\nBetween 2005 and 2017, significant data breaches—the type that affected millions of users—rose from about 200 per year to more than 1,300, according to the ITRC. Billions of pieces of data have been exposed. That has made it easy for cybercriminals to monetize stolen data, which has, in turn, led to an increased risk of identity theft. Protecting consumer data and organizational network infrastructures from potential cyber threats is a day-in and day-out battle for companies. But the time has come for consumers to step up and take control of their digital identity.\n\"In the future, consumers will need a comprehensive plan and monitoring in place to protect their larger digital identity,\" said Brian Stack, vice president of dark web intelligence at Experian. \"Consumers must be prepared to regain control if they are victims of a multi-vector attack, which means that cyber-criminals want to turn your devices into botnets that can cause even more damage. The ability to respond quickly will be critical in ensuring financial assets are secure and protected from ongoing or future attacks against their digital identity.\" END
 TITLE: Experian Forecasts the Top 5 Data Breach Predictions for 2019 CONTENT: How to Protect Your Digital Identity\n------------------------------------\nProtecting your identity online should be a top priority in case you become a victim of a data breach identity theft. Here are some tips to help protect yourself:\n*   **Do not share** your personal information with strangers over the phone, email or even text messages. These type of requests could very well be scams.\n*   **Receive free credit report monitoring** by signing up to receive alerts about your credit activity. A breached company should send you a data breach notification. However, if unusual notices via email or in the mail arrive under a different name, that can be a sign that you are a victim of identity theft.\n*   **Get a free dark web scan** to see if your Social Security number, email or phone number has been compromised. Hackers will sell stolen information on the dark web and Experian offers a dark web scan that looks back to 2006 that includes thousands of sites and millions of data points.\n*   **Lock your credit** to prevent illegal activity or if you see any odd charges being made on your existing accounts. Both freezing and locking your credit file prevents potential lenders from accessing your credit file and is a preventative measure to protect against identity theft.\nYou can read the full complimentary report with a detailed analysis of the five predictions and what they mean for businesses and consumers here. END
 TITLE: What Is a Thin Credit File and How Will It Impact Your Life? CONTENT: Some 62 million Americans have what is known as a \"thin credit file.\" That means they have few (if any) credit accounts listed on their credit reports, typically one to four. (Credit reports are maintained by the three credit reporting agencies: Equifax, TransUnion, and Experian, the publisher of this blog.)\nIf your credit file is very thin, a bank or lender may be unable to calculate a credit score because there is not enough information in your credit history to do so. (Note: About 26 million Americans are known as \"invisibles\"—they have no credit accounts on their credit reports at all.) END
 TITLE: What Is a Thin Credit File and How Will It Impact Your Life? CONTENT: Who Is Most Likely to Have a Thin Credit File?\n----------------------------------------------\nYou could have a thin file if you:\n*   Are young and new to the credit world\n*   Are a new immigrant who hasn't established a credit history in the U.S. yet\n*   Haven't used credit in a long time\n*   Have very few credit accounts that you haven't kept active\n*   Have been recently widowed or divorced\n*   Shun credit and mainly use cash\nThe Consumer Financial Protection Bureau notes in a recent study that Hispanics and African Americans, as well as people who live in low-income neighborhoods, are disproportionately impacted by thin credit files. END
 TITLE: What Is a Thin Credit File and How Will It Impact Your Life? CONTENT: What Are the Consequences of a Thin File?\n-----------------------------------------\nA thin credit file can make it very difficult to access any kind of credit, including the ability to buy a home with a mortgage or start a business with a loan. That's because most lenders in the U.S. rely on information in a credit report, along with credit scores issued by FICO®, VantageScore® or other score developers. When there is not enough information in the report, lenders are unable to determine how creditworthy a consumer is.\nAs a result, a consumer with a thin credit file could be denied credit altogether, or possibly only get access at very high-interest rates, which can be very costly over the lifetime of a loan. END
 TITLE: What Is a Thin Credit File and How Will It Impact Your Life? CONTENT: How Do I Fatten up a Thin Credit File?\n--------------------------------------\nConsumers with thin credit files can often feel like they're stuck in an impossible catch-22 situation: In order fatten up a thin credit file, you must have access to credit—but you can't get access to credit because you have a thin file.\nBut all is not lost. It is possible to improve your credit file. Just like going from having no muscles to being a bodybuilder, it takes time to beef up a credit file. There are several ways to establish and build credit, including starting with a secured credit card or applying for a credit-builder loan. For more information on how check out How Can You Fatten Up Your Thin Credit File. END
 TITLE: How to Write a Credit Dispute Letter CONTENT: Writing to a credit reporting agency (Experian, TransUnion or Equifax) to notify them that you believe certain information on your credit report is inaccurate is sometimes referred to as a \"credit dispute letter.\" In your dispute letter, you'll list any items you feel are being reported incorrectly and tell the credit reporting agency specifically what is incorrect and how you believe the item should be reported instead. If you're disputing information on your Experian credit report, we will begin the investigation process when we receive the letter; the process can take up to 30 days to complete.\nYour right to dispute information contained in your credit file originates with the Fair Credit Reporting Act (FCRA), a federal law that regulates the way credit reporting agencies can collect, access, use and share the data they maintain in your consumer reports. As part of the FCRA, you have the right to access your credit report for free from each of the credit bureaus (at AnnualCreditReport.com) and to dispute any information that you believe is inaccurate or incomplete.\nWhen you dispute information on your credit report, the credit bureau will generally contact the information provider (usually a lender or other business) and ask them to verify that the account is being reported correctly. If the lender finds that there is information that needs to be corrected, they will update or delete the account accordingly.\nIf you've been searching online, you may have come across the term \"609 dispute letter\" as a tool for improving your credit. What's a 609 letter? The term refers to section 609 of the FCRA, which outlines your right to request copies of your credit reports. (Technically, it's section 611 that affirms your right to dispute information, but that's beside the point.) You can purchase 609 dispute letter templates online, but there's no real value in doing this: Disputing information on your credit report is free when you go directly through the credit reporting agencies, and you don't need any specific template to do so. END
 TITLE: How to Write a Credit Dispute Letter CONTENT: What Can I Dispute on My Credit Report?\n---------------------------------------\nThe same credit repair firms that sell 609 letters may also suggest you can \"fix\" your credit by having negative items removed. While you can file a dispute for items you feel are incorrect or if you feel you've been the victim of identity theft, it's not likely that accurate information will be removed from your credit report, no matter what format your letter is in. Most negative information, such as late payments, will remain on your credit report for up to seven years.\nHere are a few examples of issues you might address using a dispute letter:\n*   An account was opened in your name as a result of identity theft and it does not belong to you.\n*   An address associated with your file lists the wrong house number.\n*   Your credit card company has reported a late payment, but you have documentation to show the payment was made on time.\n*   Your credit report shows a bankruptcy, but you have never filed for bankruptcy.\n*   An address associated with your file lists the wrong house number. (Keep in mind that identification information, such as name and address variations, do not have any impact on your credit scores.)\nWhat can't you dispute on a credit report? Generally speaking, you can't dispute accurate information. So, if that one payment was late because you were in a rush to the airport to start your vacation and forgot to mail the check, if the payment never got sent, it's not really disputable. On the other hand, it's always wise to contact your lender and notify them when you have an extenuating circumstance that may cause you to miss a payment. And, if you have documentation from a lender stating that they have agreed to remove the late payment, you can submit a copy of that letter along with your dispute to have it corrected. END
 TITLE: How to Write a Credit Dispute Letter CONTENT: What Should You Include in a Credit Dispute Letter?\n---------------------------------------------------\nExperian provides an easy process for filing a dispute by mail. You may dispute information on your credit report by submitting a dispute form, or write your own letter that details your issues. Your dispute letter should include the following information:\n*   Your full name\n*   Your date of birth\n*   Your Social Security number\n*   Your current address and any other addresses at which you have lived during the past two years\n*   A copy of a government-issued identification card such as a driver's license or state ID\n*   A copy of a utility bill, bank statement or insurance statement\nYou may print out and complete a dispute form and enclose it with your letter. Or simply list out each item on your credit report that you believe is inaccurate along with the account number and the reason you believe the information is incorrect. Be as specific and factual as possible. If you have documents to support your claim, such as a police report documenting your experience with identity theft, enclose copies of these documents as well.\nMail your dispute letter along with completed forms and supporting documentation to:\nExperian  \nP.O. Box 4500  \nAllen, TX 75013\nYou can also scan your materials and submit them electronically to Experian.com\/upload. END
 TITLE: How to Write a Credit Dispute Letter CONTENT: Other Ways to Dispute Credit Report Information\n-----------------------------------------------\nYou can save yourself the trouble of composing and mailing a letter by filing your dispute entirely online. Experian's Dispute Center walks you through the steps needed to initiate an online dispute and will even send you email updates to help you to track your case as it moves through the process. Disputes submitted online with Experian are completed within 30 days.\nYou can also file a dispute by phone. Call the number listed on your Experian credit report to get the process started. If you'd like a copy of your Experian credit report mailed to you, call 888-EXPERIAN.\nIf information on your credit report is found to be inaccurate, the company that reported the information is required to contact each credit bureau that they have reported it to and have it corrected. To be sure this happens, check your credit reports with all three bureaus for updates and file disputes with each one if needed. END
 TITLE: How to Write a Credit Dispute Letter CONTENT: How Does Disputing Information Affect Your Credit Score?\n--------------------------------------------------------\nSimply filing a dispute does not affect your credit score, but the outcome of a dispute might. For example, if you can show that a delinquent account on your credit report is the result of identity theft and isn't yours, the account (along with any late payments, collections or default associated with that account) will be removed—likely raising your credit score accordingly.\nFiling a dispute is unlikely to lower to your credit score, even if things don't resolve in your favor. Because the negative information you disputed isn't new to your credit report, having it stay there typically doesn't cause any further change to your score. END
 TITLE: How to Write a Credit Dispute Letter CONTENT: Be Vigilant With Your Information\n---------------------------------\nWhat if you've disputed information on your report and it's deemed correct and not removed? Negative information only remains on your credit report for a set period of time, so eventually it will \"fall off\" your report and no longer affect your credit score. You can also ask to add a consumer statement of explanation to your report. These statements don't remove negative information or affect your credit score, but they can provide potentially helpful information for lenders who are trying to understand your credit history—for example, if a past late payment was in fact the result of an extended unemployment or illness.\nWhile often completed much faster, the FCRA requires that Experian allow 30 days for the dispute process to be completed. The length of time will depend on the type of dispute you submit and how quickly the lender or other data furnisher responds. To keep your Experian credit report and score in the best possible shape, it's wise to review the information by checking both your free credit report and score on a regular basis. This allows time to have information you disagree with updated or corrected before you are in the middle of the loan or credit application process. It also puts you in a better position to detect and dispute potential fraud sooner. END
 TITLE: How to Update Your Credit Report With New Personal Information CONTENT: Your credit reports are based on information in credit bureaus' databases, much of which comes from the data that creditors send to the bureaus. When you apply for a credit card or loan, the creditor may review your credit report and also send the credit bureau information from your application, such as your name, Social Security number, address, telephone number and the name of your employer. Once your account is open, the creditor will likely send a monthly update with your latest payment status (late, on time, etc.), as well as your current account balance.\nIf you need to update your personal information on your credit report, you can generally do this by updating your information with your creditors. For example, if you move, you'll need to update your address to ensure the creditor can send you mail, including your monthly statements. The next time the creditor sends an update to the credit bureaus, it'll pass along your new address, which can then be added to the personal information section of your credit report.\nThe same process could work if you're trying to update other personal details, such as a new name. However, your phone number and employment generally only get reported to a bureau when you apply for a new account.\nYou can make a direct request to a credit bureau if you don't want to use a creditor as an intermediary or don't have any open accounts. To do so, you may also need to send proof of the change, such as copies of utility bills or bank statements with your new address. END
 TITLE: How to Update Your Credit Report With New Personal Information CONTENT: When Is Inaccurate Information an Indicator of Fraud?\n-----------------------------------------------------\nOne reason you want to regularly review your credit reports for inaccurate information is to detect credit fraud—when someone uses your personal information to fraudulently open an account in your name.\nFor instance, if you see an open credit account or loan on your credit report that you never applied for, that could be a good indication that you're a victim of identity theft. If this happens, you should contact the creditor to report the account as fraudulent and have it closed.\nYou can also dispute the fraudulent account with the credit bureaus to have it removed from your credit reports, and add a fraud alert or freeze your reports to make it more difficult for someone to use your credit to open an account in the future.\nHowever, inaccurate personal information isn't always an indication of fraud. Someone may apply for a credit card as Robert Smith and a loan as Rob Smith, and both variations of their name could appear on their credit report. Similarly, old personal information may remain on your credit report even if you change your name, address or phone number.\nThere could also be slight errors, such as a name or Social Security number that's slightly off. This could be the result of a typo rather than fraud. For security reasons, Experian does not list your actual Social Security number on your credit report. Only inaccurate ones are listed, which could alert you to a creditor misfiling your information or attempts at fraud. You may be able to clear up the error by double-checking with your creditors and making sure they have your correct name and Social Security number.\nIf asking a creditor to update inaccurate personal information doesn't work, you can also file a dispute with the credit bureau to correct inaccurate personal information. END
 TITLE: How to Update Your Credit Report With New Personal Information CONTENT: How to File a Dispute\n---------------------\nIf you want to dispute something in your credit report, you can do so by mail, fax, phone or online. Under federal law, it's your right to dispute information you believe to be inaccurate in your credit reports for free.\nWhen you use Experian's online Dispute Center, you can verify your identity, review your credit report and file a dispute all in one place. To file a dispute, select the information you'd like corrected and the reason it's incorrect, and then submit your dispute. (Before you proceed, however, understand that certain information, such as names and credit inquiries, can't be disputed using the online dispute center.)\nCredit bureaus generally have 30 days to investigate your claim and send you a response. If they find the information you disputed is incorrect, they may either correct and update the information or delete it. To verify updated information as correct, you may need to provide additional proof backing up your claim. END
 TITLE: How to Update Your Credit Report With New Personal Information CONTENT: Disputing Personal Information Won't Affect Your Credit Score\n-------------------------------------------------------------\nYour credit scores are based on information in your credit report. However, not every part of your credit report impacts your scores. For example, your name, address, phone number and employer information will have no impact on your credit scores. As a result, disputing this information won't affect your credit scores.\nIn contrast, if an account was fraudulently opened and has a past-due balance, it could be hurting your credit. Closing the account and disputing the information could help your credit when the negative account is removed from your credit history. END
 TITLE: How to Update Your Credit Report With New Personal Information CONTENT: Check Your Credit Report Regularly\n----------------------------------\nBefore you update your credit report with new information, you'll want to review a recent copy of your report. You can get a free copy of your Experian credit report online, and you'll get alerts if there are any suspicious changes in your report that could be a sign of fraud. Keep in mind, if you recently updated your personal information with a creditor, it may take a few weeks for the update to be reported and appear on your credit report. END
 TITLE: How to Dispute a Name on Your Credit Report CONTENT: Why Does My Credit Report Show Variations of My Name?\n-----------------------------------------------------\nIt's not uncommon for your credit report to list your accounts under multiple versions of your name.\nYour accounts may reflect different variations of your name that you used on credit applications—Suzanne Smith, Sue Smith and Suzanne A. Smith, for instance.\nIf you've ever changed your name (through marriage or divorce, for instance), past versions of your name also may be reflected in your credit reports. That's especially true of accounts that are no longer active: A student loan or car loan you paid off before you got married will be listed under your unmarried name, for instance, and will stay that way even after you marry.\nWith open accounts, when you inform creditors of a name change, your new name should eventually be reflected in your credit reports. It may take a few months, however, for each creditor to update all three national credit bureaus (Experian, TransUnion and Equifax), and then for the bureaus to post the changes to your credit report.\nIf you have a hyphenated last name (or adopt one when you marry), it may appear on your credit reports in its correct form (Smith-Jones) as two words (Smith Jones) or as a single word without a hyphen (Smithjones). The way it appears reflects the way lenders' automated systems handle (or don't handle) hyphens.\nThe national credit bureaus recognize that people may use different names at different times. As a result, your credit report from each bureau lists all the various names under which your accounts are listed. Credit reports are formatted differently at each bureau, but here's an idea of what the name list looks like on an Experian credit report: END
 TITLE: How to Dispute a Name on Your Credit Report CONTENT: When Is It Necessary to Dispute a Name?\n---------------------------------------\nIf your credit reports list accounts that belong or belonged to you and are under names you no longer use, it's probably not necessary to file a dispute to correct them. One exception, though, is if you've informed a current creditor about a name change, and it's reflected in their communications with you (monthly statements, updated credit cards, etc.) but your credit reports aren't updated after several months. If this were to happen, you may want to submit a dispute with the credit bureaus to bring the reports current. (More on how to go about that below.)\nBut sometimes names you've used could be connected with account information that isn't yours—and that's when it becomes important to dispute the information. This isn't a common occurrence, but it can happen accidentally or under suspicious circumstances, such as identity theft.\nYou're particularly at risk if:\n*   You share a name with a parent or child—particularly if neither of you uses a suffix (Jr., Sr., III, etc.) with your name.\n*   Your name is fairly common, and someone who shares your name also shares your date of birth—a situation that's atypical, but also not as rare as you might think.\nAccidental mixture of your credit data with those of another person who shares your name creates what's known in the industry as a \"mixed credit file,\" or mixed credit report. A mixed credit file distorts your credit history and can lead to erroneous credit score calculations.\nA mixup with someone who manages credit poorly could lead to an inaccurately low score. But even a credit history merged with a responsible credit manager can also cause grief: A lender that sees an extra student loan or mortgage mistakenly listed on your credit report, for instance, could determine (even if the loan is in good standing) that your debt-to-income ratio is too high for you to qualify for a new loan.\nUnfamiliar loans or credit accounts listed in your name on your credit report also can be a sign of criminal activity. Identity thieves commonly use a person's stolen personal information (such as their name, date of birth or Social Security number) to open bogus credit accounts, \"borrow\" money and then disappear without repaying it, leaving a negative mark on the victim's credit history.\nIf your credit report lists an account in your name that you didn't open, you should alert the national credit bureaus immediately and notify the lender that issued the account, using the contact information that appears on your credit report. You should also consider reporting the potential identity theft to authorities and taking action to protect your credit reports from criminal abuse. END
 TITLE: How to Dispute a Name on Your Credit Report CONTENT: If you need to correct your name on your credit reports, you must file a dispute with each credit bureau that lists the name incorrectly. The process differs somewhat for each of the national credit bureaus. The Experian Dispute Center webpage explains procedures for submitting disputes online, by phone or by mail. END
 TITLE: How to Dispute a Name on Your Credit Report CONTENT: How Does Disputing a Name Affect Credit Score?\n----------------------------------------------\nThe national credit bureaus use personal information—name(s), address, date of birth, Social Security number and the like—to associate you with the loans and credit accounts for which you are responsible. That information does not factor into the calculation of a credit score, so correcting your name through a credit report dispute has no direct impact on your credit score.\nIf you dispute a credit account incorrectly listed in your name and it's removed from your credit report, the payment information for that account will no longer factor into your credit score. In that case, you may see some shift in credit scores. Of course that information never should have contributed to your score to begin with, so any score adjustment will mean a more accurate reflection of your credit history. END
 TITLE: How to Dispute a Name on Your Credit Report CONTENT: Playing the Name Game\n---------------------\nUsing the dispute process to correct an outdated or inaccurate name on your credit reports is not always necessary, but the appearance of new accounts under your current name or one you no longer use can be a sign of criminal activity. That's why it's wise to check your credit reports regularly. Experian's free credit monitoring service can also notify you automatically whenever new accounts appear in your credit file, to help you detect suspicious activity before it can do harm to your credit history. END
 TITLE: Can Credit Report Disputes Lower Credit Scores? CONTENT: How Do Report Disputes Affect Your Credit Scores?\n-------------------------------------------------\nFiling a dispute—the formal name for requesting a correction to your credit report—has no impact on credit scores in and of itself. But if a dispute changes certain types of data in your credit report, that outcome could influence your credit scores. For instance, because late payments can have a strong negative impact on credit scores, removing a misreported late payment from your credit report could result in a credit score increase.\nA dispute only changes the contents of your credit report if the challenged information is inaccurate. Experian and the other national credit bureaus send the dispute to the source of the information to verify it before changing a credit report.\nIf, for instance, you request removal of an account charge-off you consider wrong, but it turns out the lender reported it accurately, the disputed entry will remain on your credit report. In this case, since the item remained unchanged, your credit score would not be impacted by the dispute.\nVariations or typos of personal identification information (name, address, Social Security number and the like) have no impact on credit scores, so a dispute requesting an update or removal of personal information will not result in any change to your scores.\nNote that credit reports list every variation of your name you've used to apply for or obtain credit, potentially including nicknames, unmarried names and previously married names. As long as you recognize them as your own, there's usually no need to file a dispute to update or correct them if you change your name. They will also list previous addresses and may include an address where a bill is received for an account you are on, even if you never lived there.\nOn the other hand, if your credit report contains variations of your name that you've never used, unfamiliar addresses or applications for credit that you didn't make—or if any of your personal info (accurate or otherwise) is connected to loans or credit card accounts you don't recognize—that may be a sign of identity theft or other criminal activity.\nIn that case, visit Experian's online fraud center and have an initial security alert added to your report. The alert lasts for one year or until you ask that it be removed. It warns creditors that you may be a victim of fraud and asks them to verify your identity before granting credit in your name. The alert will help protect you while you take the next steps.\nUse the contact information on your credit report to reach out to the creditor(s) in question to see if unauthorized accounts have been opened in your name. Once you've determined what happened and, if necessary, reported illegal activity to the creditors and relevant law enforcement agencies, contact Experian to notify us which information is related to identity theft so we can help you remove fraudulent information from your credit report. If you find you are in fact a fraud victim and have filed a police report, you can add an extended fraud alert to your credit file.\nIf you dispute transaction-related information in your Experian credit report and the credit report is revised, you can get an updated FICO® Score☉ based on that data for free through Experian to see if it had any impact on your credit score. END
 TITLE: Can Credit Report Disputes Lower Credit Scores? CONTENT: How to File a Dispute\n---------------------\nIf you believe information in your Experian credit report is inaccurate, you can file a dispute with Experian in the following ways:\n*   **Online**: The Experian Dispute Center allows you to submit disputes anytime, day or night, from your smartphone or computer. This is the quickest and easiest way to dispute your credit report.\n*   **Phone**: To submit a dispute by phone, call the number displayed on your Experian credit report or 888-EXPERIAN to speak with an agent. To request mail delivery of a hard-copy credit report, call 866-200-6020.\n*   **Postal mail**: You can also file a dispute without a credit report by writing to Experian at P.O. Box 4500, Allen, TX 75013. Be sure to include all of your personal information so that Experian can access your report. (Printing out a dispute form and dispute by mail instructions can speed up the process; you can also scan the completed form and submit it electronically at Experian.com\/upload.)\nAfter you've submitted a dispute, Experian will contact the data furnisher (your lender or credit card issuer) and ask them to check their records and verify the information. Depending on their response, one of three things typically happens:\n*   Incorrect information is corrected.\n*   Information that cannot be verified is updated or deleted.\n*   Information verified as accurate remains on your credit report.\nExperian will send you alerts via email whenever there is an update on your dispute. If you already have an account with Experian, you can also check dispute status in the Alerts section of your Experian account. Experian issues alerts at these steps in the dispute process:\n*   **Open**: This indicates the dispute process has begun.\n*   **Update**: The dispute investigation is finished and your credit report is being updated accordingly.\n*   **Dispute results ready**: Your credit report has been updated to reflect the dispute findings.\nBe aware that filing a dispute with Experian does not initiate a dispute with the other national credit bureaus (TransUnion and Equifax) or notify them of the results. If the information you are disputing also appears on those reports, you will need to file disputes with them separately. Lenders are required to update information changed in response to a dispute with all consumer reporting agencies to which the information was reported. For that reason, updates should be made automatically at all the credit bureaus, but it is still a good idea to check.\nWhat to Do if You Disagree With the Outcome of a Dispute\n--------------------------------------------------------\nIf you are unsatisfied with the results of a dispute investigation, you can take the following steps:\n*   **Contact the data furnisher(s).** If you have evidence that a lender, credit card issuer, collection agency or government agency has provided inaccurate information to one or more national credit bureaus, locate the contact information for that entity on your credit report or online and use it to ask them to correct their records—and to revise your credit files accordingly. The Fair and Accurate Credit Transactions (FACT) Act requires that the source initiate a dispute on your behalf if you ask them to.\n*   **Add a statement of dispute to your credit report.** A statement of dispute lets you explain why you believe the information in your credit report is incomplete or inaccurate. Your statement will appear on your Experian credit report whenever it's accessed or requested by a potential lender or creditor, and the lender may ask you for more details or documentation as part of their review or application process. To add a statement of dispute, go to the Experian Dispute Center webpage, choose the disputed item in question, and select Add a Statement from the menu of dispute reasons.\n*   **Resubmit a dispute with additional information.** If you have additional evidence to substantiate your claim, you can submit a new dispute. If you're filing the dispute online, follow the steps listed above for using the Dispute Center, and use the upload link to submit your supporting documentation.\nHow Long Does Negative Information Stay on Your Credit Report?\n--------------------------------------------------------------\nNegative information can remain on your credit report for seven years or more, potentially hurting your credit score to some extent the entire time it appears, so it's in your interest to dispute inaccurate negative credit information. It's a good idea to review your credit reports from all three national credit bureaus at least once each year, and to act quickly to correct any inaccuracies you discover. Doing so can prevent misreported data from harming your credit scores, and can also let you catch unauthorized credit activity associated with credit fraud and identity theft. END
 TITLE: Can Credit Report Disputes Lower Credit Scores? CONTENT: What to Do if You Disagree With the Outcome of a Dispute\n--------------------------------------------------------\nIf you are unsatisfied with the results of a dispute investigation, you can take the following steps:\n*   **Contact the data furnisher(s).** If you have evidence that a lender, credit card issuer, collection agency or government agency has provided inaccurate information to one or more national credit bureaus, locate the contact information for that entity on your credit report or online and use it to ask them to correct their records—and to revise your credit files accordingly. The Fair and Accurate Credit Transactions (FACT) Act requires that the source initiate a dispute on your behalf if you ask them to.\n*   **Add a statement of dispute to your credit report.** A statement of dispute lets you explain why you believe the information in your credit report is incomplete or inaccurate. Your statement will appear on your Experian credit report whenever it's accessed or requested by a potential lender or creditor, and the lender may ask you for more details or documentation as part of their review or application process. To add a statement of dispute, go to the Experian Dispute Center webpage, choose the disputed item in question, and select Add a Statement from the menu of dispute reasons.\n*   **Resubmit a dispute with additional information.** If you have additional evidence to substantiate your claim, you can submit a new dispute. If you're filing the dispute online, follow the steps listed above for using the Dispute Center, and use the upload link to submit your supporting documentation. END
 TITLE: Can Credit Report Disputes Lower Credit Scores? CONTENT: How Long Does Negative Information Stay on Your Credit Report?\n--------------------------------------------------------------\nNegative information can remain on your credit report for seven years or more, potentially hurting your credit score to some extent the entire time it appears, so it's in your interest to dispute inaccurate negative credit information. It's a good idea to review your credit reports from all three national credit bureaus at least once each year, and to act quickly to correct any inaccuracies you discover. Doing so can prevent misreported data from harming your credit scores, and can also let you catch unauthorized credit activity associated with credit fraud and identity theft. END
 TITLE: What Is a 609 Dispute Letter? CONTENT: What Is Section 609?\n--------------------\nSection 609 refers to a section of the Fair Credit Reporting Act (FCRA) that addresses your rights to request copies of your own credit reports and associated information that appears on your credit reports. Section 609, oddly enough, doesn't have anything to do with your right to dispute information on your credit reports or a credit reporting agency's obligations to perform investigations into your disputes. There is no such \"609 Dispute Letter\" anywhere to be found in the FCRA.\nThe FCRA does, in fact, include a considerable amount of language memorializing your rights to dispute the information found in your credit reports. But it's in section 611 of the statute, rather than in section 609. Thanks to section 611, we all enjoy the right to dispute information we believe to be incorrect or unverifiable. And if the disputed information cannot be verified or confirmed, then it must be removed. END
 TITLE: What Is a 609 Dispute Letter? CONTENT: Is a 609 Dispute Letter Effective?\n----------------------------------\nIf you're looking for dispute letter templates, there's likely a reason. Normally consumers send dispute letters to the main credit reporting agencies (Experian, TransUnion and Equifax) because they believe something on their credit report is incorrect. This can happen if they've applied for a loan or other form of credit and the lender has informed them that they were denied because of information on their credit report. It can also happen when they check their credit report and find accounts they don't recognize. The practical impact of a dispute letter is it causes the credit reporting agency to investigate and correct any alleged error.\nThe 609 Dispute Letter theory is if you ask the credit bureaus for information they clearly cannot produce as part of your dispute letter, like the original signed copies of your credit applications or the cashed checks used for bill payment, then they would have to remove the disputed item because it's unverifiable. The FCRA, however, entitles us to all of the information the credit reporting agencies have in their systems—not information they do not have in their systems.\nWhile there is plenty of information online about 609 Dispute Letters, there is no evidence suggesting any specific letter template is more effective than another. And frankly, you could submit your credit report dispute on the back of a beverage napkin and if it's valid, then the information must be corrected or removed. The method of delivery is largely irrelevant when it comes to your rights for an accurate credit report.\nConversely, if the information on your credit reports is accurate and verifiable, then chances are it's going to remain on your credit reports. The style of your letter doesn't change that fact. END
 TITLE: What Is a 609 Dispute Letter? CONTENT: How to Correctly Dispute Errors on Your Credit Report\n-----------------------------------------------------\nThere are better ways to dispute your credit reports than buying dispute letter templates, and the process is actually very easy. First, get copies of your credit reports so you can review them for errors. You have the right to a free copy of your credit reports once every 12 months from AnnualCreditReport.com. You can also get a free credit report from Experian every 30 days.\nIf you determine there is information appearing on your credit report or reports that is legitimately incorrect or that you believe can no longer be verified by the source of the information, the law protects you. In those cases, you should file a formal dispute. Specifically, if your Experian credit report contains any errors, you can file your dispute online, via good old-fashioned U.S. mail, or over the phone. To dispute an item on your Experian credit report by mail, print and fill out the online dispute form, which asks for information to verify your identity and allows you to note the specific items you're disputing and why you think they are incorrect. Then mail that form to Experian at P.O. Box 4500, Allen, TX 75013.\nThe dispute and investigation process cannot take more than 30 to 45 days, and most investigations are completed within a few weeks. Once the credit reporting agency has completed the investigation process, it is required to provide you with written results within five business days. END
 TITLE: What Is a 609 Dispute Letter? CONTENT: Bottom Line: Save Your Money\n----------------------------\nAfter you've filed your dispute, you can sit back and give the process a few weeks to run its course. And a final bit of good news: You can leave your credit card in your wallet because this entire process is—and has always been—free for consumers. END
 TITLE: How Much Does Credit Repair Cost? CONTENT: Can You Pay to Have Your Credit Fixed?\n--------------------------------------\nConsumers have the right to challenge credit information they believe is inaccurate. This process is, and has always been, completely free.\nCredit repair, alternatively, is where someone pays a third-party company to attempt to get negative information removed from credit reports. And while it is legal to hire a credit repair company to dispute credit information, paying for this service doesn't mean the information will be removed. In fact, paying a fee will never lead to negative information being removed from your credit reports if it is accurate. END
 TITLE: How Much Does Credit Repair Cost? CONTENT: How Much Do Credit Repair Companies Charge?\n-------------------------------------------\nA [credit repair organization](;num=0&edition=prelim) is any for-profit company that sells you a service designed to improve your credit reports or credit scores, according to the Credit Repair Organizations Act (CROA). How these companies get payment for their services varies.\nCredit repair companies generally receive payment for their services by charging a monthly subscription fee or charging a fee each time they are able to get an item removed from your credit report. And if a company is able to get an item deleted from all three of your credit reports, you'll be charged the fee times three.\nWith the subscription model, a credit repair customer is charged for the services rendered by the credit repair company during the prior 30 days. Normally those charges are made to the credit card on file with the company.\nCredit repair costs can reach hundreds or even thousands of dollars—and there is no guarantee the company will be successful getting credit entries deleted from your credit reports. In fact, it is a violation of CROA for a credit repair company to guarantee that they can get negative items removed from your credit reports. END
 TITLE: How Much Does Credit Repair Cost? CONTENT: Why Paying for Credit Repair Isn't Worth It\n-------------------------------------------\nCredit repair companies cannot do anything for you that you cannot do for free yourself. So what is the value of paying someone else to dispute credit information on your behalf? In many cases, there is none.\nRather than paying for credit repair services, you'll likely be better off redirecting your efforts toward more proven methods of improving your credit reports and scores. Instead of paying a company to send dispute letters to the credit bureaus, which you can do online yourself at no cost, you can use that money to pay off any delinquent obligations, outstanding collections or credit card debt.\nGoing forward, employ time-tested strategies for improving credit. Paying all your bills on time and paying down credit card debt are solid methods for building your credit—and you can do it yourself, for free, to improve your financial health. END
 TITLE: Can You Pay to Have Your Credit Fixed? CONTENT: Do Credit Repair Companies Fix Your Credit?\n-------------------------------------------\nThe words \"fix\" and \"repair\" suggest your credit reports are somehow wrong or otherwise contain inaccurate information. This isn't usually true and isn't really how credit repair companies operate. Instead of helping consumers correct possibly inaccurate credit report entries, they attempt to have any negative information removed—whether the negative information is correct isn't relevant to their efforts.\nCredit repair companies cannot fix your credit. They don't have a secret backchannel to the three credit bureaus (Experian, TransUnion and Equifax) that allows them to get information removed. Further, the credit bureaus don't delete credit information simply because you've hired a credit repair company. There's simply nothing a credit repair company can do for you that's any more effective than what you can do on your own.\nHow Much Does Credit Repair Cost?\n---------------------------------\nThe Credit Repair Organizations Act (CROA) [defines a credit repair organization](;num=0&edition=prelim) as any for-profit company or person that provides a service, in exchange for payment, that purports to improve your credit reports or credit scores.\nCredit repair companies generally charge a subscription fee for work performed during the prior month, or they may charge for each credit report deletion they achieve. The monthly subscription fee generally runs around $75, but it can vary depending on the company and the service you select. They may also charge based on how many items end up being removed from your credit reports. Fees for deleted items also vary, but can be $50 or higher per item, per credit bureau. In either scenario, it's easy to see how quickly fees could potentially add up to hundreds or thousands of dollars.\nHow to Fix Your Credit Without Paying\n-------------------------------------\nIt's important to know that you have the power to repair your own credit, for free. One of the most important rights conveyed by the Fair Credit Reporting Act is the right to dispute any information on your credit reports you feel is incorrect and to have that information corrected or removed if it is found to be inaccurate. The dispute process is available to you at no cost.\nTo ensure your credit reports are accurate, review them periodically. You can view credit reports from each of the credit bureaus for free once every 12 months at AnnualCreditReport.com. There are also several states with laws providing for additional free credit reports, and other conditions whereby credit reports are available at no cost. You can also check your Experian credit report for free every 30 days once you create an account.\nSave Your Money\n---------------\nPaying a credit repair company to \"fix\" your credit report is usually a waste of money since you can dispute credit report information yourself, for free. In either case, information will only be removed or modified if it is inaccurate.\nIf you believe you've found errors on one or more of your credit reports, federal and state laws provide you with options to have those errors investigated and corrected. You can dispute items on your Experian report, for example, by going to the Experian Dispute Center.\nCredit repair costs can quickly run into the hundreds of dollars, and credit repair companies are not legally allowed to guarantee that they can have credit information removed. As such, the cost benefit of hiring a credit repair company simply isn't there. You'd be better off saving your money and filing free credit report disputes on your own behalf. END
 TITLE: Can You Pay to Have Your Credit Fixed? CONTENT: How Much Does Credit Repair Cost?\n---------------------------------\nThe Credit Repair Organizations Act (CROA) [defines a credit repair organization](;num=0&edition=prelim) as any for-profit company or person that provides a service, in exchange for payment, that purports to improve your credit reports or credit scores.\nCredit repair companies generally charge a subscription fee for work performed during the prior month, or they may charge for each credit report deletion they achieve. The monthly subscription fee generally runs around $75, but it can vary depending on the company and the service you select. They may also charge based on how many items end up being removed from your credit reports. Fees for deleted items also vary, but can be $50 or higher per item, per credit bureau. In either scenario, it's easy to see how quickly fees could potentially add up to hundreds or thousands of dollars. END
 TITLE: Can You Pay to Have Your Credit Fixed? CONTENT: How to Fix Your Credit Without Paying\n-------------------------------------\nIt's important to know that you have the power to repair your own credit, for free. One of the most important rights conveyed by the Fair Credit Reporting Act is the right to dispute any information on your credit reports you feel is incorrect and to have that information corrected or removed if it is found to be inaccurate. The dispute process is available to you at no cost.\nTo ensure your credit reports are accurate, review them periodically. You can view credit reports from each of the credit bureaus for free once every 12 months at AnnualCreditReport.com. There are also several states with laws providing for additional free credit reports, and other conditions whereby credit reports are available at no cost. You can also check your Experian credit report for free every 30 days once you create an account. END
 TITLE: Can You Pay to Have Your Credit Fixed? CONTENT: Save Your Money\n---------------\nPaying a credit repair company to \"fix\" your credit report is usually a waste of money since you can dispute credit report information yourself, for free. In either case, information will only be removed or modified if it is inaccurate.\nIf you believe you've found errors on one or more of your credit reports, federal and state laws provide you with options to have those errors investigated and corrected. You can dispute items on your Experian report, for example, by going to the Experian Dispute Center.\nCredit repair costs can quickly run into the hundreds of dollars, and credit repair companies are not legally allowed to guarantee that they can have credit information removed. As such, the cost benefit of hiring a credit repair company simply isn't there. You'd be better off saving your money and filing free credit report disputes on your own behalf. END
 TITLE: How Long Will It Take to Repair My Credit History? CONTENT: How Does the Dispute Process Work?\n----------------------------------\nIt's important to understand what happens when you file a dispute with one of the three national credit bureaus (Experian, TransUnion and Equifax). When you dispute information, you set in motion a process regulated by the Fair Credit Reporting Act (FCRA). The FCRA, among other things, gives you the right to dispute information on your credit reports at no cost. Section 611 of the law entitles you to a reasonable investigation pursuant to your dispute.\nWhen the credit bureau receives your dispute, it will communicate directly with the source of the disputed information. This source, formally referred to as the \"data furnisher,\" is usually a lender or other financial services company, debt collector or other business.\nThe furnisher is obligated to perform a reasonable investigation when they receive your dispute from the credit bureau. The furnisher will generally review their records to determine whether your dispute has merit and warrants a change in their credit reporting. Once they have performed their investigation, they will respond to the credit bureau that made the request and instruct the bureau to either delete the information, modify it or leave it unchanged. END
 TITLE: How Long Will It Take to Repair My Credit History? CONTENT: How Long Will the Dispute Process Take?\n---------------------------------------\nThere is no single answer to the \"how long will this take\" question. The credit bureaus have 30 days to complete their investigations by law. There are, however, two exceptions to the 30-day rule.\nThe first is if you file your dispute after you've accessed a copy of your credit report or credit reports via AnnualCreditReport.com. AnnualCreditReport.com is the federally mandated website set up and operated by the credit reporting companies to provide consumers with their free annual credit reports.\nThe second exception occurs if you file a dispute with a credit reporting bureau or bureaus, and subsequently provide supporting documents to them regarding your dispute, such as canceled checks or a letter from your lender supporting your position that something is being reported incorrectly.\nIn either of these two scenarios, the credit reporting companies will have an additional 15 days on top of the initial 30 days to complete their respective investigations.\nWhile the credit bureaus legally have either 30 or 45 days to complete their investigation, that doesn't mean it will take that long. The 30-day time limit has been part of the FCRA for several decades and became law during an era when the various dispute forms were physically mailed, rather than sent via the internet. Today, most consumer disputes are now completed within a few weeks thanks to advancements in technology. END
 TITLE: How Long Will It Take to Repair My Credit History? CONTENT: How Long Is Negative Information Allowed to Remain on My Credit Reports?\n------------------------------------------------------------------------\nThe 30- to 45-day time limits apply only to the actual investigation process. If you dispute information on your credit reports that is found to be accurate, then the information is likely to remain on your credit reports after the investigation has been completed. The FCRA does not obligate the credit bureaus to remove accurate information unless the information has run its full credit reporting lifecycle, which varies depending on the information.\nPositive information may be able to remain on your credit reports indefinitely. There is no language in the FCRA that obligates the credit bureaus to remove positive information. Closed accounts with no late payments typically can remain on your report for up to 10 years from the date they were closed. Open, active accounts with no late payments may remain on a credit report indefinitely.\nNegative information is a different story altogether. The FCRA sets limits on how long negative information can remain on a credit report. Late payments and most other negative information is removed after seven years, although there are some exceptions. Chapter 7 bankruptcies, for instance, may remain on credit reports for up to 10 years from the bankruptcy filing date.\nIn addition to their FCRA obligations, several years ago the three credit reporting agencies agreed to remove other information from consumer credit reports as a matter of policy rather than as a matter of law. For example, non-contractual debts, such as library fines and parking tickets, that were previously reported will be removed. END
 TITLE: How Long Will It Take to Repair My Credit History? CONTENT: Should I Hire a Credit Repair Company to Speed Up the Process?\n--------------------------------------------------------------\nCredit repair is a process whereby a consumer hires a company to submit dispute letters to the credit reporting companies on their behalf. Credit repair letters, which often simply dispute everything negative on a consumer's credit report, don't result in a different dispute or resolution process than the one takes place when you send a dispute letter on your own. More important, you could pay dearly for these services, which you can do for free yourself.\nThere isn't anything a credit repair company can do for you that you can't do for yourself. A credit repair company must disclose this fact to you prior to them performing any services on your behalf. This is one of the many requirements the Credit Repair Organizations Act puts on credit repair companies. END
 TITLE: How Long Will It Take to Repair My Credit History? CONTENT: The Bottom Line: Save Your Money and Do It Yourself\n---------------------------------------------------\nThe FCRA gives you the right to dispute the information in your credit reports for free. Couple that with the fact that credit repair companies can't do anything different than you can do on your own, and the math seems clear: Save your money and dispute any inaccurate information on your credit report yourself. If you'd like to dispute any information on your Experian credit report, you can go to the Experian Dispute Center. END
 TITLE: Can Credit Repair Companies Remove Hard Inquiries? CONTENT: How Do Credit Repair Companies Work?\n------------------------------------\nCredit repair companies charge consumers a fee to remove inaccurate information from their credit reports. They may charge hundreds or even thousands of dollars to find inaccurate negative information in their clients' credit histories and dispute them with the major consumer credit bureaus.\nCredit repair companies don't have any special way of disputing inaccurate information that isn't available to the general public. In fact, these companies are regulated by the Credit Repair Organizations Act (CROA), a law that requires them to provide clients with a written contract specifying the services they will provide, and offer those clients three days to cancel the contract. Furthermore, these companies can't promise to remove accurate information or accept payment until they fulfill the contract. For more information, see \"How Does Credit Repair Work?\"\nThat means that you have as much power in your own hands to get inaccurate or fraudulent inquiries deleted from your credit report—without paying for it. END
 TITLE: Can Credit Repair Companies Remove Hard Inquiries? CONTENT: What to Do if You Have Inaccurate Inquiries\n-------------------------------------------\nThe first step to determining whether you have inaccuracies in your credit file is to get a free credit report and go over it in detail.\nThere are two types of inquiries that can appear on your report: soft inquiries and hard inquiries. A soft inquiry is usually the result of a pre-screened or preapproved credit offer from a company that you already have a relationship with, or of you getting a copy of your credit report. Soft inquiries have no effect on your credit score, so there's no reason you'd need to get them removed.\nOn the other hand, a hard inquiry reflects an actual application for a new credit account. Having a couple recent hard inquiries on your credit report is unlikely to have a significant impact on your credit score. But having several recent hard inquiries can have a bigger effect on your score. The more recent the inquiry, the more effect it will have. (Hard inquiries stay on your credit report for two years, but FICO® Scores☉ don't consider hard inquiries greater than 12 months old.)\nWhen you see a hard inquiry you don't recognize, there are several steps you can take. First, contact the company listed on the report, as it may be an inquiry that you approved but one that's listed under an unfamiliar company name or acronym. Other unfamiliar inquiries could be from services that shop around for different offers. Thankfully, credit scoring formulas consider repeated inquiries in a short period of time to be applications for a single loan, limiting their effect on your credit score.\nBut if you've investigated the hard inquiry and determined that you didn't authorize it, you can dispute it as fraud. To do that, contact the company that reported the inquiry, as well as the credit reporting bureaus (Experian, TransUnion and Equifax). END
 TITLE: Can Credit Repair Companies Remove Hard Inquiries? CONTENT: How Disputing Inquiries Impacts Your Credit\n-------------------------------------------\nBy itself, filing a dispute won't impact your credit score, but it could affect your score if the information on your report changes as a result of your dispute. For example, if there are multiple recent hard inquiries on your report that you didn't authorize, your credit score could rise if this information is removed as a result of your dispute. END
 TITLE: Can Credit Repair Companies Remove Hard Inquiries? CONTENT: Protecting Your Credit\n----------------------\nDisputing fraudulent inquiries is only one aspect of safeguarding your credit history. And since only fraudulent hard inquiries can be removed from your credit report, you need to take extra steps to protect your identity. For example, you can request temporary fraud alerts on your credit report for one year, and victims of identity theft can request extended fraud victim alerts that last for seven years. You can also request a security freeze on your credit report that's designed to prevent new credit accounts, loans and services from being opened in your name. However, keep in mind that a security freeze can also delay or interfere with the approval of loan applications that you submit; you need to know how to remove a security freeze when you want to apply for credit. Learn more about preventing fraud.\nWhen it comes to removing fraudulent inquiries from your credit reports, a credit repair company is simply asking for money to perform a service that you can do for yourself. By understanding what credit repair is and how it works to remove unauthorized inquiries, you can make an informed decision the next time a company advertises that it can improve your credit for a fee. END
 TITLE: Can Piggybacking Credit Help Me Get a Mortgage? CONTENT: How Piggybacking Credit Works\n-----------------------------\nPeople who are new to credit or have a less-than-favorable credit score may have trouble getting credit card accounts on their own because their credit scores are too low, or because they don't even have a credit report from which a credit score can be calculated. One way they can gain access to a credit card is by becoming an authorized user on an established credit card account, sometimes referred to as \"piggybacking.\"\nBecause most, but not all, credit card companies report the authorized user's purchases and payments to the three national credit bureaus (Experian, Equifax and TransUnion), authorized users can establish a pattern of credit usage that may help them build up their credit over time. As long as the primary user doesn't miss payments or carry excessive balances, the authorized user can establish a credit history even if they don't use any credit themselves. However, this strategy won't help authorized users learn good credit habits or how to create their own solid credit history over time.\nThis practice has given rise to third-party companies that, for fees often in the thousands of dollars, will make you an authorized user on someone else's credit card account for a short period of time (without actually issuing you a card) as a means of artificially boosting your credit scores.\nPaying for this type of service is highly questionable and can cause many more problems than it's worth. The number of lenders reporting primary-user activity on authorized users' credit reports is shrinking, and the latest versions of the FICO® Score☉ and VantageScore® credit scoring systems take steps to downplay the impact of certain authorized-user accounts in an attempt to discourage this practice. In certain instances, using a for-profit piggybacking service could be interpreted as bank fraud. END
 TITLE: Can Piggybacking Credit Help Me Get a Mortgage? CONTENT: Understanding the Mortgage Process\n----------------------------------\nWhen you apply for a mortgage, the lender's first step in deciding whether to provide you with a loan is often reviewing your credit score—but it's never the _only_ step in their lending decision.\nWhile lenders regard strong credit scores as a good indicator of reliable payment habits, they look well beyond your score when considering your loan application. Mortgage lenders typically look carefully at the credit reports used as the basis for your credit scores, and they almost always seek additional information about your income, length of employment, and perhaps even savings and other assets you could draw upon to help pay back the loan. END
 TITLE: Can Piggybacking Credit Help Me Get a Mortgage? CONTENT: How Mortgage Lenders View Credit Piggybacking\n---------------------------------------------\nEach lender has its own specific criteria for deciding whom it will lend to and how much it charges a given borrower in terms of interest rate and fees. Lenders often use credit scores as \"first pass\" indicators of the types of loan they'll offer you. If your FICO® Score falls in the good range, for instance, your application might be sorted into consideration for a relatively low interest loan, while a score in the fair range might steer your application toward consideration for a loan with a higher interest rate, or even a subprime loan.\nThose preliminary categorizations can go right out the window once the lender reviews your credit report. Once again, the criteria vary, but lenders seeking evidence of strong credit management typically like to see at least two or three credit accounts in your name, ideally in a mix of revolving accounts (such as credit cards) and installment loans (such as car loans).\nBecause authorized-user accounts are not ultimately your responsibility, some lenders ignore them for purposes of evaluating creditworthiness. That means a credit score built solely using piggybacked accounts could be setting you up for disappointment: You might be offered promotions for loans with attractive interest rates based on a score buoyed by authorized-user activity only to have those offers withdrawn or downgraded upon closer examination of your credit report. END
 TITLE: Can Piggybacking Credit Help Me Get a Mortgage? CONTENT: How to Build Credit Over Time\n-----------------------------\nBecoming an authorized user may be a good first step to building credit, but you should only use this strategy with a close relative or person you trust. While you are not responsible for making the payments on this account, using the card and paying the primary user for your purchases may help you establish good credit habits.\nOnce you've used an authorized-user account to establish payment history, you may be eligible for a credit card in your own name. It will probably have a higher interest rate and a lower borrowing limit than you'd have on an authorized-user account, but it'll be a start toward building credit of your own.\nUse your credit card regularly even if only for small purchases. Keep your balance at or below about 30% of the borrowing limit and pay the bills promptly each month. In time, you'll be in good shape to apply for another card, perhaps with a lower interest rate and a higher borrowing limit. You may also find yourself better qualified for an auto loan.\nBy establishing additional credit accounts such as these, you'll likely improve your credit scores by as much or more than you could by solely being an authorized user—and you'll also be building the kind of credit management track record lenders look for when considering mortgage applications.\nThis approach to building a credit history that'll help you get a mortgage is time-tested, but it also takes time: You'll need at least several years if you're starting from scratch with no credit history at all, and perhaps even longer if you're trying to rebuild your credit after a financial mishap.\nIf you don't feel you can wait, you may be eligible for some mortgage loan options even if your credit is less than great, but you should be aware that they can be hard to get, and expensive in terms of interest and fees if you do qualify. END
 TITLE: Can Piggybacking Credit Help Me Get a Mortgage? CONTENT: Improve Your Credit Before Getting a Mortgage\n---------------------------------------------\nIf you can wait even a few months to a year, you can do a great deal to boost your odds of mortgage approval and generally spruce up your credit by following some basic guidelines for improving your credit scores. In a nutshell, they boil down to:\n*   Pay your bills on time every month.\n*   Pay down credit card balances in excess of 30% of your borrowing limits.\n*   Monitor your credit scores and check your credit report, and correct any inaccurate entries they may contain.\nWhenever you decide the time is right to seek a mortgage, you should take a few steps to make sure you put your best foot forward as you submit your applications, and make sure to apply to multiple lenders to ensure you get the best possible borrowing terms.\nBecoming an authorized user on credit accounts may help you establish and improve your credit scores, which can be a good first step on the way to a mortgage loan. But don't count on piggybacking by itself to get you the home loan you seek. END
 TITLE: What Is Piggybacking Credit? CONTENT: How Piggybacking Credit Works\n-----------------------------\nIf a person with good credit adds you as an authorized user to their credit card account, their payment history becomes part of your own credit report. For example, if they've had the credit card open for 10 years, your credit report would reflect an active credit account for that time frame too. If the primary cardholder has a positive payment history and keeps their account balance low, you may see a boost in your credit scores. However, if the primary cardholder falls behind on payments, that could hurt your credit scores as well, potentially making your credit situation worse.\nPiggybacking doesn't always work. Not all credit card companies report authorized users to the three major credit bureaus (Experian, TransUnion and Equifax). In addition, becoming an authorized user doesn't help you learn and develop good habits on how to use and manage credit wisely. The best way to build credit and increase your credit scores is to obtain your own credit accounts, pay them all on time and maintain a low credit utilization ratio. END
 TITLE: What Is Piggybacking Credit? CONTENT: For-Profit Piggybacking Services\n--------------------------------\nBeware of paid piggybacking services that target consumers looking to build credit. These companies pair you with a stranger with an excellent credit score who will add you as an authorized user to their account for a set time period—for a fee. There are significant drawbacks associated with using for-profit piggybacking services:\n*   **It is a questionable and deceptive practice.** Buying your way to a good credit score could be perceived as an attempt to deceive the lender, which could have legal implications. If the action is interpreted as bank fraud, it could be punishable by large fees, prison time or both.\n*   **For-profit piggybacking services are expensive.** Depending on the line of credit you choose, it can cost as much as $4,000.\n*   **You have to give up your personal information.** To become an authorized user, you must provide the company with your name, address, birthdate and Social Security number. This puts you at risk of fraud and identity theft.\n*   **It's a short-term solution.** If you pay for a piggybacking service, you're only an authorized user for a limited time. Once the term ends, the account is removed from your credit report, likely causing your credit scores to drop again.\n*   **It won't help you learn responsible credit habits.** This form of piggybacking won't help you build and maintain your credit over time by creating a history of positive payments, which is a critical factor impacting your credit scores.\n*   **Lenders don't look favorably on the practice.** When you're looking for a loan, your lender will want assurance that you know how to manage credit accounts. If they see that you're using a stranger to improve your credit, they may be less likely to approve your loan request.\n*   **It may give you false confidence when borrowing.** There's a reason lenders want to loan money to people who have good credit histories: They have more trust that these consumers will pay back their loans. Without real experience borrowing money and paying it back, either through a credit card account or other loan, you may not understand how difficult it may be to keep up with those monthly payments.\nThe good news is there are proven ways to build credit that don't involve paying someone to do it for you. END
 TITLE: What Is Piggybacking Credit? CONTENT: Ways to Build Credit\n--------------------\nHere are other ways you can build your credit that provide longer-lasting results than piggybacking:\n1.  **Apply for a secured credit card**: A great option for those with no credit history, a secured credit card is a card that requires you to place a deposit with your own money as collateral. The deposit acts as your credit line. As you make your payments, the card company reports your payments to the credit bureaus.\n2.  **Take out a credit-builder loan**: When you take out a credit-builder loan, the lender sets aside the funds in a savings account and you make monthly payments. The lender reports your payments to the credit bureaus, and at the end of the loan term, the funds are released to you.\n3.  **Boost Your FICO® Score☉** : Get credit for the utility and telecom bills you're already paying by signing up for Experian Boost™† —a free tool that can increase your FICO® Score instantly.\nWith these options, you can steadily increase your credit scores over time without the cost of a piggybacking service. END
 TITLE: What Is Piggybacking Credit? CONTENT: Managing Your Credit History\n----------------------------\nAs you work to improve your credit history, it's important to monitor your credit report and make adjustments to your financial behavior so you can see long-term results. Here are the five actions you can take to help positively manage your credit history.\n1.  Pay all of your bills on time.\n2.  Keep your credit utilization below 30%. With each of your revolving credit accounts, such as credit cards and lines of credit, make sure your balances stay low relative to the credit limits on the accounts. For the best credit scores, keep your utilization under 10%.\n3.  Diversify the types of credit accounts you have (credit cards, personal loans, auto loans and so on) to create a good credit mix.\n4.  Minimize the number of hard inquiries in your credit file over a short period of time. Too many inquiries can hurt your credit scores.\n5.  Keep your accounts in good standing to avoid having negative information appear on your credit report, such as late or missed payments, foreclosures and collection accounts. END
 TITLE: How Employers Can Help You Pay Off Student Loans CONTENT: How Employer Student Loan Repayment Works\n-----------------------------------------\nCompanies that offer student loan repayment plans make payments to the loan servicer or directly to the employee. Depending on the employer, you may need to work at the company for a certain number of years or have successfully completed a degree to qualify.\nHowever, some companies may help you pay back student loan debt even if you didn't graduate and there may be no tenure requirement.\nTypically, employers match your payments annually or set a lifetime cap. For example, Google matches employee payments up to $2,500 per year, while Fidelity Investments caps student loan payment assistance at $10,000 per employee. END
 TITLE: How Employers Can Help You Pay Off Student Loans CONTENT: A growing number of employers offer student loan repayment assistance as a company benefit. Most tend to be large companies, but that could change as more employers take advantage of tax breaks enacted last year as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act. Here are six major employers that offer student loan repayment:\n*   **Aetna:** Aetna's Student Loan Repayment Program will match up to $2,000 in student loan payments annually for full-time employees with a lifetime cap of $10,000. Aetna will also match up to $1,000 per year for part-time employees who work 20 hours a week or more with a $5,000 lifetime cap.\n*   **Chegg:** At Chegg, employees working in entry-level through management roles can receive up to $5,000 annually for student loan repayment. Employees at the director level or above may receive up to $3,000 per year. To qualify, you need to have worked with Chegg for at least two years.\n*   **Fidelity Investments:** Fidelity Investments' Step Ahead Student Loan Assistance Program pays up to $10,000 of an eligible employee's student loans. Since Fidelity started the program in 2016, more than 12,000 Fidelity employees have taken advantage of it, collectively saving $58 million in principal and an estimated $27 million in interest, according to the company.\n*   **Google:** Google will match up to $2,500 per year in student loan payments. The student loan payment program launched in 2021 and Google aims to expand it globally.\n*   **New York Life:** New York Life offers up to $10,200 in student loan payments over five years to eligible employees.\n*   **PricewaterhouseCoopers (PwC):** The PwC Student Loan Paydown benefit pays up to $1,200 per year on student loans for associates and senior associates. END
 TITLE: How Employers Can Help You Pay Off Student Loans CONTENT: How Employers Benefit From Helping You Pay Off Student Loans\n------------------------------------------------------------\nStudent loan debt repayment assistance programs don't just benefit employees; it's a company perk that can attract high-quality job applicants and increase employee retention.\nThanks to the CARES Act, companies also now get a tax break when they help employees pay off student loan debt. Through December 2025, student loan payments made by employers are considered an education assistance benefit similar to tuition reimbursement programs that pay for tuition, books and other education supplies. As a result, neither you nor your employer will pay taxes on up to $5,250 you receive in education assistance per year. END
 TITLE: How Employers Can Help You Pay Off Student Loans CONTENT: Ways to Pay Off Student Loans Faster\n------------------------------------\nIf your employer doesn't offer student loan payment assistance (or it's not enough to pay off your balance), these actions could help you pay off your loans faster:\n### Make an Extra Monthly Payment\nPaying more than what's due each month can help accelerate your payoff timeline since extra money can go directly to attacking the principal (as long as you request it). Consider making payments twice a month instead of once a month to chip away at your balance faster.\n### Bring in More Income\nWhen going over your budget, you might find that you don't have much extra cash to put toward student loan payments. Earning extra income by asking for more hours at work, getting a part-time job or a side hustle could help you bridge the gap.\n### See if You Qualify for Forgiveness Programs\nIf you find a job in a certain field or with an eligible organization, your federal loans may qualify for loan forgiveness. For example, the Teacher Loan Forgiveness Program may forgive up to $17,500 of eligible student loans for teachers who work in a low-income school for five consecutive years.\nThe Public School Loan Forgiveness (PSLF) program forgives your student loan balance after you make 120 on-time payments on qualifying loans while working at a nonprofit organization or in federal, state or local government.\n### Refinance Your Student Loans\nIf you have good credit, refinancing your student loans to secure a lower interest rate could save you money throughout the life of your loan and help you pay off debt faster.\nJust keep in mind that refinancing federal student loans with a private lender means you'll no longer qualify for federal loan benefits like forbearance, PSLF or income-driven repayment. If you think you might need to use federal loan benefit options in the future, it may be a good idea to stick with your federal loans instead of refinancing. END
 TITLE: How Employers Can Help You Pay Off Student Loans CONTENT: The Bottom Line\n---------------\nIf you have student loans, some employers may be willing to help pay off your balance. If your employer doesn't offer a student loan assistance plan, making extra payments or refinancing could help you pay off student loan debt faster.\nIf you're having trouble making ends meet, speak with your loan servicer before missing a student loan payment. Your lender may be able to offer a payment arrangement, and your federal loans may qualify for forbearance or an income-driven repayment plan for payment relief. END
 TITLE: What Types of Debt Can Go to Collections? CONTENT: What Happens When an Account Goes to Collections?\n-------------------------------------------------\nYour credit reports track your history of repaying loans and credit cards. If you leave any of those bills unpaid long enough, the creditor could charge off the debt, close your account and sell the debt to a third-party collection agency. Typically, this is done after 120 days, or four billing cycles, although it can take up to 180 days for a credit card to be charged off. When a collection agency takes over the debt, the balance on the charged-off account changes to $0, and a new collection account appears on your credit report.\nIf you check your credit reports regularly, it's difficult to be surprised by collections related to money you've borrowed since updates to your credit report will reflect each missed payment before the collection account appears. Furthermore, creditors will certainly be reaching out to you in the months following your first missed payment, trying to get your payments back on track.\nCollection accounts connected to other unpaid bills can come as more of a surprise, however: Missed payments to banks, medical providers, utilities and other service providers do not automatically appear on your credit reports, but if those unpaid bills are turned over to collections, the collection accounts do get added to your credit reports. The companies you owe will invariably try to reach you before that happens, but it's possible, in the case of individuals who have moved or in cases of medical bills for which the provider has been dealing with an insurance company instead of the patient, for you to be unaware of the debt in question until it appears on your credit reports.\nTo determine whether you have any collection accounts you are not aware of, check your credit reports regularly. END
 TITLE: What Types of Debt Can Go to Collections? CONTENT: How Long Do Collections Stay on Your Credit Report?\n---------------------------------------------------\nAn account in collections remains on your credit report for seven years, dated from the first missed payment that led to the charge-off and sale to collections. Collection accounts are considered negative entries on your credit report, which means they can have a negative impact on your credit scores as long as they remain on your credit reports. Not only that, lenders reviewing your credit report may see them as red flags. END
 TITLE: What Types of Debt Can Go to Collections? CONTENT: Collection Accounts that May Not Affect Your Credit Scores\n----------------------------------------------------------\nThe national consumer credit reporting agencies (Experian, TransUnion and Equifax) responded to growing concerns over medical debt collections by changing their handling of those accounts in the National Consumer Assistance Plan. If a medical debt collection account is paid by an insurance company, it is removed from your credit reports immediately, instead of persisting for seven years like other paid collection accounts.\nThe companies that maintain the leading credit scoring models, FICO and VantageScore®, also altered their calculation methods in response to consumer concerns over collection accounts:\n*   FICO® Score☉ versions launched since FICO® Score 8 (introduced in 2009) ignore small-dollar \"nuisance\" collection accounts in which the original balance was less than $100.\n*   FICO® Score 9 (introduced in 2014) and FICO® Score 10 (the most recent version, introduced in 2020) additionally ignore all paid collection accounts and assign less weight to unpaid medical collections than they do other unpaid collections.\n*   VantageScore versions 3.0 (introduced in 2013) and 4.0 (the most recent version, introduced in 2017) ignore all paid collection accounts when calculating your credit score. END
 TITLE: What Types of Debt Can Go to Collections? CONTENT: How to Avoid Having Accounts Go to Collections\n----------------------------------------------\nThe simplest way to avoid having accounts go to collections—and one of the best ways to help your credit scores over time—is to take care to pay your bills on time, every month. Setting up automatic payments or using automatic reminders on your phone can help you make this a habit.\nIf you're having difficulty covering your payments, reach out to your creditors to see if you can arrange to make smaller payments. Creditors may work with you if you can show you'll be able to resume regular payments within a reasonable amount of time, and they typically won't send your account to collections as long as they're receiving some form of payment each month.\nIf you can't see any end in sight to difficulties covering all your bills each month, consider consulting an accredited credit counselor. Nonprofit credit counseling agencies can advise you on organizing your budget and help you explore options for getting caught up on your bills, including negotiating with creditors on your behalf to help you work out a formal repayment plan. They can also go over your options if bill repayment is unaffordable. You can locate reputable nonprofit credit counselors through the National Foundation for Credit Counseling. END
 TITLE: What Is a Merged Credit Report? CONTENT: How Do Merged Credit Reports Work?\n----------------------------------\nMerged credit reports are also known as tri-merge reports or three-bureau reports. They're generally created by third-party mortgage reporting companies that gather your information from the major consumer credit bureaus—Experian, TransUnion and Equifax.\nThe company sorts and combines the information from your three reports to create the merged report. Duplicate entries may also be removed. There may be a summary near the beginning of the merged report that provides an overview of the consumer's open accounts, balances, disputes, inquiries, late payments and credit utilization ratio. Unlike your personal credit reports, tri-merge reports do not include a summary of soft inquiries.\nThe lender can also order a variety of add-ons with a merged report. For example, mortgage lenders often get specific types of FICO® Scores☉ based on each of a consumer's credit reports. The credit bureaus assign brand names to these types of FICO® Scores that indicate which bureau supplies the information used in the calculation:\n*   FICO® Score 2 (Experian\/Fair Isaac Risk Model v2)\n*   FICO® Score 5 (Equifax Beacon 5)\n*   FICO® Score 4 (TransUnion FICO Risk Score 04)\nLenders can also request a tri-merge report with other versions of the FICO® Score or VantageScore®, or even multiple credit scores based on a single credit report. And merged reports can include more specialized types of scores, such as bankruptcy scores. END
 TITLE: What Is a Merged Credit Report? CONTENT: Can You Order a Tri-Merge Credit Report?\n----------------------------------------\nMerged reports are primarily created and sold to mortgage professionals, and you can't necessarily order one on your own. However, if you're working with a mortgage lender or broker, they may be able to share a copy of your tri-merge report with you.\nThey may even be able to request a merged report with a soft inquiry—the type that doesn't impact your credit scores. However, if you want to get preapproved for a mortgage or you're applying for a loan, the creation of the tri-merge report could lead to a hard inquiry on all three of your credit reports.\nYou may also be able to get a copy of a merged credit report if you're working with a credit counselor. Some counselors offer first-time homebuyer programs, and reviewing your credit may be part of the preparation process.\nWhile you won't get a tri-merge report, you can request a free copy of your credit report from each of the three credit bureaus once a week (through April 20, 2022) on AnnualCreditReport.com. You'll receive three individual reports rather than a single merged report, but you'll be able to have a complete picture of the information being reported to Experian, Equifax, and TransUnion. You can use this information to gain a better understanding of your credit reports and review your account information, such as your payment history and balance information. END
 TITLE: What Is a Merged Credit Report? CONTENT: Why Do You Have More Than One Credit Score?\n-------------------------------------------\nDon't be surprised if you check your credit scores, or see them on a copy of your merged report, and notice that they aren't all the same. Not only is this common, but it's to be expected.\nCredit scores are based entirely on the information in your credit report, and they can vary depending on both the scoring model used to calculate it and the credit report that's being analyzed. For example, Experian gives you a free FICO® Score 8 credit score, but one of your lenders or card issuers might give you a VantageScore 3.0 credit score. Even when both scores are analyzing your Experian credit report, the differences in the scoring algorithms will likely result in different outcomes.\nWhen the same model is used, the resulting scores can still differ based on which credit bureau provided the report. Much of the information in your credit report is provided by data furnishers, such as lenders and collection agencies. But these furnishers don't have to send information to all three bureaus, and some may choose to only report your account to one or two of the bureaus.\nThese differences in your credit reports can result in varying credit scores. It's also why some lenders may want to review a merged credit report before agreeing to give you a loan. END
 TITLE: What Is a Merged Credit Report? CONTENT: Monitor Your Credit Scores for Changes\n--------------------------------------\nYou might not know which score a lender will use to make a decision. However, while your credit scores may vary, they all depend on the underlying information in your credit reports. With this in mind, checking and monitoring your credit reports for changes can be important.\nYou can sign up for a free Experian credit report online, which includes free credit monitoring, daily alerts and a free FICO® Score 8. If you would like to order both your credit history and credit score from each of the three credit bureaus at once, you can do so online through Experian. END
 TITLE: What Counts as Income on a Credit Application? CONTENT: Why Your Income Matters\n-----------------------\nCreditors consider various information before deciding to approve your application and the terms you'll be offered, such as the credit limit or loan amount and interest rate. Your history with the company, credit scores, credit reports, income and outstanding debts can all be factors. Some of the information a creditor considers comes from your credit report or their internal records.\nYour income isn't part of your credit report, however, so you'll report it yourself on the application—which is why you need to know which types of income to include. You may also be asked to submit verification documents, such as pay stubs or tax returns. And creditors can use computer models to estimate some applicants' income. END
 TITLE: What Counts as Income on a Credit Application? CONTENT: Types of Income You Can Often Use\n---------------------------------\nYou can generally use the following sources of income on an application. To get your total annual gross income, add up the amounts you receive before taking out taxes and benefits:\n*   **Employment**: Hourly wages and salaries you receive as a full-time or part-time employee, including your bonuses, tips and commissions.\n*   **Self-employment**: Money you earn as a contractor, gig worker or business owner.\n*   **Investments**: Interest, dividends, coupon payments and other types of investment income.\n*   **Retirement**: Such as Social Security, pensions, annuities and withdrawals from retirement accounts.\n*   **Public assistance**: May include Social Security disability income and housing vouchers (when applying for a mortgage).\n*   **Insurance payments**: For policies that provide ongoing coverage, such as long-term disability and workers' compensation.\n*   **Other people's income**: Sometimes, you can include a spouse's, partner's or household member's income or assets if you have reasonable access to the funds. For instance, if your spouse's income is deposited into a joint account.\n*   **Alimony, child support and separate maintenance**: You can, but don't need to, count these as income.\n*   **Some financial aid**: The portion of scholarships, grants, work-study wages and sometimes student loans that you receive directly.\n*   **Regular allowance**: Money that you receive on a regular basis from someone else, such as an allowance from a parent while you're at school.\n*   **Other income**: Less common types of income may also count, such as royalty payments, trust payouts and foster-care income.\n### If You're Under 21 Years Old\nThe Credit CARD Act distinguishes between credit card applicants who are under 21 years old. If you're 18 to 20, you can only use your independent income or assets when applying for a credit card. An allowance can count, but you can't include a relative or friend's income, even if they will help you pay the bill.\nTypes of Income and Benefits You Often Can't Use\n------------------------------------------------\nCreditors generally only want you to list regular and ongoing sources of income that you can use to repay the debt. As a result, the following might not count:\n*   **Unemployment benefits**: Unemployment Insurance benefits can typically only be collected for a limited time. There may be exceptions for seasonal workers who regularly collect unemployment, however.\n*   **Non-cash assistance**: Such as vouchers or subsidies for utilities and child care.\n*   **Lottery winnings and gifts**: When they're one-time events.\n*   **Some financial aid**: Funds that go directly to your school to pay educational expenses aren't part of your income.\n*   **Loans**: Most loans aren't considered income because you need to repay the money.\nCreditors may have some say over which types of income they'll consider. If you have any questions, you could call and ask the creditor before you submit an application.  \nDo All Creditors Consider Your Income and Debt?\n-----------------------------------------------\nMost creditors want to be sure—and many are required by law to verify—that you can afford to make your debt payments. Your income is part of the equation, along with your other outstanding monthly financial obligations.\nCreditors may use this information to calculate:\n*   **Debt-to-income ratio (DTI)**: Your DTI compares your gross monthly income and all your monthly debt payments. Different types of lenders will review your current DTI and how the new account would affect it. There may be a maximum allowed DTI—such as 43% for qualified mortgages.\n*   **Payment-to-income (PTI) ratio**: Auto lenders may consider your DTI and PTI ratios. The PTI ratio shows how much of your monthly income goes toward your car payment and estimated insurance premium. Lenders may set a 15% to 20% maximum PTI.\nA higher income and lower payments lead to lower ratios—which is best when you're applying for credit.  \nPrepare for Your Next Application\n---------------------------------\nIncreasing your income can help you get better loan offers, but it isn't easy. Here are some other things you can try as you're getting ready to apply:\n*   **Pay off debts.** Paying off a debt can lower your DTI, but you'll need to pay it off completely. A debt consolidation loan could be a good option if you can qualify for a lower interest rate, and your monthly payment is lower than the total of your previous payments. Using a loan to consolidate credit card debt may also help improve your credit scores by lowering your utilization rate.\n*   **Review your credit reports.** Look over your credit reports for the factors that may be hurting your credit. You can get your credit reports from all three credit bureaus through AnnualCreditReport.com. You can also check your Experian credit report online for free. If you find something you believe to be amiss, you can also quickly file a dispute online.\n*   **Check your credit score.** Experian gives you a free FICO® Score☉ based on your Experian credit report. Track it over time and get suggestions on how to improve your score.\n*   **Ask someone to cosign.** A creditworthy cosigner or co-borrower may help if you can't qualify for credit on your own, or if you're not happy with the terms you're offered.\nYou can also try to get preapproved or prequalified for a loan or credit card with a soft inquiry—which won't impact your credit scores. Experian CreditMatchTM can help you find and compare offers from partner credit card and personal loan companies. Some lenders or loan brokers can also work with you directly to preapprove or prequalify you for a new account. END
 TITLE: What Counts as Income on a Credit Application? CONTENT: Types of Income and Benefits You Often Can't Use\n------------------------------------------------\nCreditors generally only want you to list regular and ongoing sources of income that you can use to repay the debt. As a result, the following might not count:\n*   **Unemployment benefits**: Unemployment Insurance benefits can typically only be collected for a limited time. There may be exceptions for seasonal workers who regularly collect unemployment, however.\n*   **Non-cash assistance**: Such as vouchers or subsidies for utilities and child care.\n*   **Lottery winnings and gifts**: When they're one-time events.\n*   **Some financial aid**: Funds that go directly to your school to pay educational expenses aren't part of your income.\n*   **Loans**: Most loans aren't considered income because you need to repay the money.\nCreditors may have some say over which types of income they'll consider. If you have any questions, you could call and ask the creditor before you submit an application. END
 TITLE: What Counts as Income on a Credit Application? CONTENT: Do All Creditors Consider Your Income and Debt?\n-----------------------------------------------\nMost creditors want to be sure—and many are required by law to verify—that you can afford to make your debt payments. Your income is part of the equation, along with your other outstanding monthly financial obligations.\nCreditors may use this information to calculate:\n*   **Debt-to-income ratio (DTI)**: Your DTI compares your gross monthly income and all your monthly debt payments. Different types of lenders will review your current DTI and how the new account would affect it. There may be a maximum allowed DTI—such as 43% for qualified mortgages.\n*   **Payment-to-income (PTI) ratio**: Auto lenders may consider your DTI and PTI ratios. The PTI ratio shows how much of your monthly income goes toward your car payment and estimated insurance premium. Lenders may set a 15% to 20% maximum PTI.\nA higher income and lower payments lead to lower ratios—which is best when you're applying for credit. END
 TITLE: What Counts as Income on a Credit Application? CONTENT: Prepare for Your Next Application\n---------------------------------\nIncreasing your income can help you get better loan offers, but it isn't easy. Here are some other things you can try as you're getting ready to apply:\n*   **Pay off debts.** Paying off a debt can lower your DTI, but you'll need to pay it off completely. A debt consolidation loan could be a good option if you can qualify for a lower interest rate, and your monthly payment is lower than the total of your previous payments. Using a loan to consolidate credit card debt may also help improve your credit scores by lowering your utilization rate.\n*   **Review your credit reports.** Look over your credit reports for the factors that may be hurting your credit. You can get your credit reports from all three credit bureaus through AnnualCreditReport.com. You can also check your Experian credit report online for free. If you find something you believe to be amiss, you can also quickly file a dispute online.\n*   **Check your credit score.** Experian gives you a free FICO® Score☉ based on your Experian credit report. Track it over time and get suggestions on how to improve your score.\n*   **Ask someone to cosign.** A creditworthy cosigner or co-borrower may help if you can't qualify for credit on your own, or if you're not happy with the terms you're offered.\nYou can also try to get preapproved or prequalified for a loan or credit card with a soft inquiry—which won't impact your credit scores. Experian CreditMatchTM can help you find and compare offers from partner credit card and personal loan companies. Some lenders or loan brokers can also work with you directly to preapprove or prequalify you for a new account. END
 TITLE: What Is an Extended Fraud Alert? CONTENT: How Does an Extended Fraud Alert Work?\n--------------------------------------\nAn extended fraud alert is the longest-lasting of three similar fraud alerts or security alerts you can add to your credit report. All three—the temporary fraud alert, the military or active-duty fraud alert, and the extended fraud alert—request lenders to confirm your identity before processing a credit application made using your personal information. All aim to prevent criminals from using your personal credentials to borrow money or set up credit card accounts in your name, and all are free to add.\nWhat sets the three types of fraud alerts apart is their duration and who is eligible to receive one: Only victims who have reported credit fraud can obtain an extended fraud alert, which lasts seven years. Active-duty fraud alerts last one year and are available to military service members on remote-duty assignment. Temporary fraud alerts (sometimes called initial fraud alerts) are available to anyone, anytime, and also last one year.\nPlacing a fraud alert at any one of the three national credit bureaus (Experian, TransUnion or Equifax) will automatically attach the alerts to your credit reports at the other bureaus. All fraud alerts can be removed or suspended temporarily upon request, but doing so requires notifying each bureau separately. Fraud alerts can be renewed when they expire, but renewing extended fraud alerts and military fraud alerts require resubmission of eligibility documents. END
 TITLE: What Is an Extended Fraud Alert? CONTENT: How to Place an Extended Fraud Alert\n------------------------------------\nYou can easily request an extended fraud alert (or any other type of fraud alert) by using the Experian Fraud Alert Center. When requesting an extended alert, you'll need to submit a copy of the identity theft report you filed with law enforcement. Instructions at the Fraud Center webpage cover options for uploading supporting documents electronically as digital files and for submitting hard copies via postal mail. END
 TITLE: What Is an Extended Fraud Alert? CONTENT: Does an Extended Fraud Alert Affect Your Credit?\n------------------------------------------------\nThe presence or absence of an extended fraud alert on your credit report has no effect at all on your credit scores or credit standing. But because fraud alerts ask creditors to verify your identity, they can sometimes hinder your ability to be instantly approved for a new credit account at, say, a retail store counter.\nA fraud alert does not affect the likelihood that you'll qualify for a loan or credit, but it can complicate the automated approval process these instant-approval credit or financing offers rely on. If you have a credit alert in place and wish to get approval for such offers, you might need to contact the company to find out how you can apply since you may not be able to get instant credit.\nWhile it may not be possible for lenders to process instant credit applications with a security alert on your report, having an alert won't prevent lenders from approving other types of credit once they are able to verify your identity. And the extra security a fraud alert provides can prevent an identity thief from succeeding in opening new credit accounts in your name. When a criminal secures a loan or credit card account in your name, they'll typically use the funds and then vanish without making any payments. This can lead to negative entries on your credit report and, as a result, lower credit scores. You can get fraudulent entries removed from your credit history by filing disputes with the national credit bureaus. END
 TITLE: What Is an Extended Fraud Alert? CONTENT: What Is the Difference Between a Fraud Alert and a Credit Freeze?\n-----------------------------------------------------------------\nThose who have had their personal data stolen and used by fraudsters sometimes consider a credit freeze.\nA credit freeze, or security freeze, is another form of fraud protection sometimes used by consumers who have been repeated victims of identity theft. While a fraud alert asks creditors who view your credit report to verify your identity before approving credit, a security freeze prohibits potential new creditors from accessing your credit report at all. If you need to apply for credit yourself, you'll need to lift or thaw the freeze before you apply. In some cases, you may be able to obtain a single-use PIN to provide to your lender so that they can access your report on a one-time basis.\nCredit freezes must be set up separately at each of the national credit bureaus. When you request a freeze, you may be supplied with or asked to create a PIN or password to use when thawing your report. To lift a credit freeze, each bureau must be notified separately. It costs nothing to activate or lift a credit freeze, and each freeze lasts indefinitely—it has no expiration date.\nLenders may work with any combination of the national credit bureaus when checking your credit history and credit scores, so individuals with credit freezes in place typically must thaw their credit at all three bureaus any time they apply for credit. For this reason, a fraud alert may be more preferable to freezing your reports. END
 TITLE: What Is an Extended Fraud Alert? CONTENT: An Ounce of Prevention\n----------------------\nIf you've been a victim of data theft or identity fraud, it's prudent to take steps to secure your credit file. An extended fraud alert is easy to set up, and it can go a long way toward preventing criminals from securing credit in your name. If you'd like to keep a closer eye on your credit report, Experian credit monitoring can help you. This free service provides you with free credit reports and scores as well as alerts that can draw your attention to changes in your credit. END
 TITLE: How Fraud Alerts Can Affect Credit Applications CONTENT: How Does a Fraud Alert Work?\n----------------------------\nIf you've placed a fraud alert on your credit report, lenders will know to verify your identity before they process applications for credit or loans requested in your name.\nThere are special fraud alerts designed for U.S. service members on remote assignment (the active-duty fraud alert), and for victims of identity theft who have submitted fraud complaints to law enforcement (extended fraud victim alert), but anyone can request the most basic type of fraud alert anytime, for any reason.\nThe most basic fraud alert (known as a temporary fraud alert or an initial fraud alert) expires after one year, as does an active-duty fraud alert. An extended fraud victim alert remains on your credit report for seven years unless you remove it before then. Fraud alerts are free, and you can renew them as many times as you like. END
 TITLE: How Fraud Alerts Can Affect Credit Applications CONTENT: How a Fraud Alert Can Affect Getting Credit\n-------------------------------------------\nFraud alerts have no impact on the contents of your credit reports, or on the credit scores based on that information, but they can delay the credit application process. The delays are related to the time required for the extra identity-verification steps lenders must take when they process applications from consumers whose credit reports include fraud alerts.\nIn many cases (mortgage applications, for example, and some car loans), the applicant won't even notice the extra time required for the extra ID validation. But the time lag can interfere with instant-credit approvals connected with in-store or online applications for credit cards or financing. Automated credit-approval systems may not be equipped to handle the ID verification steps required by a fraud alert, so they may stall the application process as a result.\nLaw prevents creditors from denying applications because of fraud alerts. So as long as you're qualified for the loan or credit card, the lender will ultimately approve your application. You will likely need to speak with a company representative over the phone or face-to-face for identity-verification purposes—a process that takes a little extra time. END
 TITLE: How Fraud Alerts Can Affect Credit Applications CONTENT: Can I Remove a Fraud Alert From My Credit Report?\n-------------------------------------------------\nJust as a fraud alert is added to your credit report at your request, you can request to have it removed as well. The process is straightforward but just a little more burdensome than placing a fraud alert: When you activate a fraud alert, you can do so at any of the three national credit bureaus (Experian, TransUnion and Equifax), and that bureau will automatically notify the other two on your behalf. But when you want a fraud alert removed before its expiration date, you must submit requests to each bureau individually.\nWhile a fraud alert can be a minor inconvenience to you when seeking instant credit approval, it's a significant obstacle to criminals seeking to impersonate you and borrow money in your name. If you suspect or know your personal data has been exposed or stolen, a fraud alert can be an important weapon in your fight against identity theft. END
 TITLE: How Do Fraud Alerts Affect Credit? CONTENT: What Is a Fraud Alert?\n----------------------\nA fraud alert is a notification you can add to your credit reports if you believe or know you have been a victim of identity theft or credit fraud. When an alert is attached to your credit report, any lender who reviews your credit in connection with an application for a loan or credit is required to take extra steps to verify your identity before processing the application. This is designed to prevent thieves from using your credentials to borrow money or make credit card purchases in your name.\nWhen you place a fraud alert on your Experian credit report, Experian automatically notifies the other two national credit bureaus (TransUnion and Equifax) to add alerts to the credit reports they keep on you.\nThere are three types of fraud alert, and you can request any of them at the Experian Fraud Alert page. When requesting any of these alerts, you must provide a copy of a government-issued ID, plus a piece of mail, such as a utility bill or bank statement as proof of address. Supporting documents can be submitted by U.S. mail or scanned and uploaded as electronic files.\n*   **Temporary fraud alert**: This is sometimes called an initial fraud alert. If you suspect your personal information has been used fraudulently, or even just worry that it may be subject to abuse because of suspicious account activity or a data breach, you can add a temporary fraud alert to your credit report. Unless you decide to remove it sooner, a temporary fraud alert will stay on your credit reports for one year and then expire. You can renew it as many times as you like.\n*   **Active-duty fraud alert**: U.S. service members can use an active-duty fraud alert to inform potential lenders that they are on assignment and that their identities should be confirmed before processing any loan or credit applications. Service members have the option of including a contact phone number in the alert. Like a temporary alert, an active-duty fraud alert remains on your credit report for one year unless you choose to remove it.\n*   **Extended fraud victim alert**: If you know you've been a victim of credit fraud or identity theft and have reported the crime to the authorities, you can obtain an extended fraud alert. This alert stays on your credit reports for seven years unless you decide to remove it sooner. When you request an extended fraud alert, you must submit a copy of the identity theft report you filed with law enforcement. END
 TITLE: How Do Fraud Alerts Affect Credit? CONTENT: How a Fraud Alert Can Impact Getting Credit\n-------------------------------------------\nWhile a fraud alert does not have any material effect on your credit report contents or your credit scores, it can cause delays in credit applications. Extra time typically is needed for the identity-verification steps lenders must take when they process applicants with fraud alerts.\nThis is most noticeable in situations when you're applying for instant credit approval online or at a retailer (seeking a store credit card or approval to buy furniture using store credit, for example). Few automated credit-check systems are equipped to handle the ID verification steps a fraud alert demands, and systems that aren't equipped may balk when they try to get a credit score for a customer who's set a fraud alert.\nBy law, creditors cannot refuse applications on the basis of a fraud alert. So if your credit meets the loan requirements, the retailer or credit issuer will ultimately approve your application, but the process won't be instant. You will likely need to deal with a company rep in person or on the phone so they can verify your identity.\nMonitoring your credit on a regular basis will help smooth the process when you're applying for credit. Experian's free credit monitoring service, for example, will help you understand your credit report and score, and alert you whenever there's a new inquiry. END
 TITLE: How Do Fraud Alerts Affect Credit? CONTENT: How to Remove a Fraud Alert\n---------------------------\nIf you place a fraud alert on your credit report and then decide for any reason that you no longer need it, you can remove it easily at the Experian Fraud Alert Center.\nWhile placing a fraud alert at any of the three national credit bureaus automatically initiates alerts at all three, canceling alerts must be done with each bureau individually. The process to remove an alert is quick, but just a little more complicated than adding an alert.\nFraud alerts can be an important tool in combating identity theft. They are easy to activate, and nearly as easy to deactivate. If you're in doubt about the safety of your personal data, or you know you've been a victim of credit fraud, taking advantage of fraud alerts can spare you considerable additional trouble. END
 TITLE: Can One 30-Day Late Payment Hurt Your Credit? CONTENT: What Happens When Your Payment Is Late?\n---------------------------------------\nWhen you make a payment after its stated due date, you're generally subject to a late payment fee. This can happen immediately or following a designated grace period (more on this in a moment). You may also lose access to promotional interest rates on your credit card, which can be costly if you carry a large balance.\nIf your payment is 30 days or more past its due date, your creditor may also report your late payment to one or more of the three credit bureaus: Experian, TransUnion and Equifax. The impact one late payment has on your credit score depends on your unique credit history. For example, if you have excellent credit and this is your first late payment, your credit score may drop significantly—more dramatically than it would for someone who has already accumulated multiple late payments. Why? After a string of late payments, that person's credit score has already sustained damage.\nOn the other hand, your excellent credit score and clean history might allow you to maintain a relatively good score, even with one 30-day late payment. And a single 30-day late payment is less impactful than a payment that is 60, 90 or 120 days late. END
 TITLE: Can One 30-Day Late Payment Hurt Your Credit? CONTENT: When Will a 30-Day Late Payment Fall Off Your Credit Report?\n------------------------------------------------------------\nA 30-day late payment stays on your credit report for seven years, at which point it will automatically drop off your credit report and no longer affect your credit score. Its effect on your credit score will also diminish over time. If your 30-day late payment turns into a 60-day, 90-day or 120-day late payment, the entire series will drop off your credit report seven years after the original delinquency date. END
 TITLE: Can One 30-Day Late Payment Hurt Your Credit? CONTENT: What if Your Payment Is Only a Few Days Late?\n---------------------------------------------\nBeing even a day late with your monthly payment can have different consequences depending on the type of loan or credit card and your agreement with the lender. For example, mortgages and car loans often have a grace period, during which you can still make your loan payment without paying a late fee. A typical grace period on a mortgage is 15 days—but check your loan agreement for details about the grace period your lender may extend.\nCredit cards don't usually offer this type of grace period: If you're as little as one minute late, you may be subject to a late fee and may be switched to a higher interest rate as well. When credit card companies refer to a grace period on their accounts, they're usually referring to the period before you're charged interest on a credit card purchase. So, if you buy a sofa for $2,000, and pay the entire $2,000 balance before your grace period ends, you don't owe the credit card company any interest.\nHow does a payment that's just a few days late affect your credit report? A payment that's not yet 30 days late—or one full billing cycle—probably won't be reported to credit bureaus if it's brought current before 30 days are up. Until that point, your late payment is an issue between you and your creditor. You may be subject to fees or higher interest rates, but you shouldn't suffer a hit to your credit score. END
 TITLE: Can One 30-Day Late Payment Hurt Your Credit? CONTENT: How to Avoid Late Payments in the Future\n----------------------------------------\nGoing forward, the best thing you can do for your credit scores is to avoid late payments and pay your bills on time, every time. A few tips to keep you on track:\n*   Consider setting up automatic bill payments in your online banking account.\n*   Add payment due dates to your personal calendar.\n*   Set up reminders or alerts so you don't miss due dates.\nYou may see ads for credit repair companies that promise to remove late payments from your credit report. Just be aware: Accurately reported late payments won't be removed. Your time and effort are better spent on cultivating good credit habits so you can improve your credit score yourself over time.\nWhile you're doing this, it's a good practice to check your credit score and report regularly, which you can do for free through Experian. You'll be able to spot and address any inaccuracies on your credit report as they arise and monitor your progress as your credit improves. END
 TITLE: How to Protect Your Child From Identity Theft CONTENT: What Is Child Identity Theft?\n-----------------------------\nChild identity theft is a special case of identity theft involving the criminal abuse of personal information belonging to minors, including Social Security numbers (SSNs), dates of birth and home addresses. The nonprofit Identity Theft Resource Center (ITRC) cites a 2018 study that found that more than 1 million children were targeted for identity theft in 2017, underscoring the significance of the problem.\nCrooks can use children's personal data the same ways they do adults', for purposes including:\n*   Applying for and opening credit card accounts\n*   Obtaining loans\n*   Seeking unemployment, Social Security benefits or other government services\n*   Opening bogus bank accounts for use in fraudulent money transfers\nChild identity theft is especially pernicious because children typically don't receive the bank statements, credit card bills and other communications that can alert adults to suspicious financial activity. This means child identity theft can go on for years before it is detected, spawning multiple bogus accounts or loans, all of which can damage the child's credit. While that damage can be undone with time and effort, child identity theft can come to light at a devastating time—when the child's first student loan application is denied, or when the credit check for a first job throws up a red flag, for instance.\nCriminals take advantage of the fact that parents—even those who carefully track their own credit and financial histories—may not think to safeguard their children's personal data and credit. END
 TITLE: How to Protect Your Child From Identity Theft CONTENT: Identity thieves constantly devise new schemes for tricking victims into giving up personal information, as well as new means of exploiting personal data. As an example, criminals capitalized on the COVID-19 pandemic with bogus assistance offers aimed at capturing personal information, while also using stolen credentials to falsely claim COVID-relief benefits. Criminal resourcefulness makes it difficult to anticipate every approach fraudsters will use, but a set of basic precautions will go far toward preventing child identity theft.\n### Consider Security Freezes on Your Child's Credit Reports\nThere's no reason for most children to have credit reports, since it's illegal for anyone under 16 to apply for a loan or credit card in their own name. Fraudulent loan and credit card applications can generate credit reports, however, and by the time you or the child discovers them, they could be full of unpaid accounts.\nYou can nip this in the bud by requesting a security freeze for your child at each of the three national credit bureaus (Experian, TransUnion and Equifax). When you request a security freeze, the bureau creates a credit report for your child and then locks it down, so that any lender who attempts to process an application that uses your child's credentials will be denied access to their credit history. This prevents any loans or credit cards from being issued in the child's name. When the child reaches legal age and wants to apply for credit, the freeze can be lifted by contacting each credit bureau individually.\n### Safeguard Children's Social Security Numbers\nYou should never share a child's Social Security number with anyone who doesn't have a very good reason for having it—which means it's smart to ask anyone who requests it why they need it. The IRS requires the child's SSN when you're setting up a 529 college savings plan or claiming your child as a dependent, but their day camp and martial arts academy won't really need it. If they insist, you can refuse and seek services elsewhere, or provide the last four digits of the SSN, but beware: Even the \"last four\" can be useful to identity thieves. Keep your child's Social Security card in a secure place such as a safety deposit box and memorize the number so you don't have to write it down anywhere.\n### Monitor Your Child's Personal Information\nIf your child starts receiving credit offers in the mail, or if you see unexpected activity on their email, phone or bank accounts, their personal information may have been compromised. When you first give your children their own phones, advise them that caller ID can't always be trusted, and calls that appear to be from banks or other trusted institutions may be scams.\nAlthough a phone number may seem innocuous, identity thieves can use your child's phone number to get access to accounts. Many companies use a phone number for identity verification, and caller ID spoofing allows identity thieves to make your child's phone number appear when they call one of these companies. They also use automated callers (hoping to get your child to type in or record information), and some may even impersonate institutions and call your child directly.\n### Pay Attention to  Policies\nPractically all organizations that gather data on kids have privacy policies that detail how the child's private information will be used and protected. Reading these policies can help you identify potential risks to your child's information. If in doubt, never hesitate to ask questions, and don't disclose your child's information if you're not comfortable with what you see in the policy.\n### Use Your Own Personal Information Instead of Your Child's\nIt's easy to share kids' personal information without thinking about it—and kids often are eager to do so—enrolling in a restaurant's birthday club to get free dessert, for example. And even if retailers don't abuse your child's information, none are immune to data theft that can expose kids' personal info. To protect your child's personal information, attach their accounts to your email or phone number, rather than the child's, to help you pick up on any suspicious activity.\n### Avoid Oversharing on Social Media\nIdentity thieves comb social media for personal information—from birthdays and addresses to clues about security questions such as \"What's your first pet's name?\" or \"Where did you go to elementary school?\" Minimizing the amount of information you share about your kids, limiting your sharing options to \"friends\" (rather than \"public\") and confining your circle of \"friends\" to people you trust and know personally can reduce the risk of exposing children's personal information.\n### Monitor Your Child's Social Media and Other Online Activity\nThink carefully and do research before you allow a minor child to have a social media account attached to their real name. Insist that they make you part of their shared network so you can monitor what they're sharing and with whom. And keep in mind that your child may have access to the internet and smartphones at school or friends' houses, even if you limit or forbid those activities at home. Explain to your children why you're concerned, and advise them on the kinds of information they should never disclose.\n### Keep Your Home Safe\nA burglary that results in theft of birth certificates, passports or Social Security cards could enable child identity theft. Always lock doors and windows, set an alarm if you have one, and keep valuable documents offsite, in a safety deposit box or in a safe. (A strongbox could protect your documents in case of fire, but a thief could easily take it away.)\n### Teach Your Children Well\nIt's important for kids to understand identity theft risks. Find age-appropriate ways to talk to children about the topic. Make them aware that phone calls, text messages and emails aren't always from who they purport to be, and that they should check with you before responding to any of those that seek personal information. Let them know it's OK to hang up on an adult who asks for sensitive information, no matter who they claim to be. END
 TITLE: How to Protect Your Child From Identity Theft CONTENT: Warning Signs of Child Identity Theft\n-------------------------------------\nDetecting child identity theft can be difficult, but there are some signs to watch for:\n*   Offers for credit cards, auto insurance or other age-inappropriate \"junk mail\" addressed to your child.\n*   Unexpected bills addressed to your child.\n*   Collection notices that arrive by mail or phone, targeting your child.\n*   Denial of government benefits for your child on the basis that they've already been paid to someone using your child's Social Security number.\n*   A letter from the IRS saying your child owes taxes. (Phone calls purporting to be from the IRS are almost always scams; the IRS communicates with taxpayers only by mail.) END
 TITLE: How to Protect Your Child From Identity Theft CONTENT: What to Do if Your Child's Identity Is Stolen\n---------------------------------------------\nIf you suspect your child is a victim of identity theft, your first step should be to check his or her credit reports at all three national credit bureaus, which you can do for free at AnnualCreditReport.com.\nUnless you've had credit reports created for purposes of security freezes, your child probably won't have a credit report on file at the bureaus. If credit reports already exist when you request a security freeze you should look into the possibility of fraud:\n*   Notify all three national credit bureaus that fraud may have occurred using your child's credit report and ask them to investigate.\n*   Notify the business or financial institution that issued the credit or loan, using contact information that appears on the credit report(s). Let the lender know the account was fraudulently opened in the name of your minor child and ask them to investigate.\n*   File a police report with your local law enforcement agency.\n*   [File a fraud report with the FTC](;panel1-1) online or by calling 877-438-4338.\nExperian has more resources on fraud and identity theft to help you and your family stay informed.\nChild identity theft is an ugly side effect of the information age, but attention and caution can help prevent it, or minimize the damage when it occurs. Taking prudent precautions such as applying a security freeze or using a family identity protection program such as Experian IdentityWorksSM can help keep children's personal information secure. END
 TITLE: Online Car-Buying Scams to Watch Out For CONTENT: Is It Safe to Buy and Sell Cars Online?\n---------------------------------------\nJust as with any other way to do business, buying or selling a car online has its pros and cons.\nHere are five of the pros of buying online.\n1.  It saves time. Rather than driving from dealership to dealership to look for a car, you can go shopping on your computer or mobile device.\n2.  You can shop around the clock. Whether it's 10 a.m. or 10 p.m., online marketplaces for buying and selling cars are always open.\n3.  It's a no-pressure environment. When you visit a car dealership, a salesperson may press you into making a hasty decision. That doesn't happen when you're shopping online.\n4.  You can steer clear of negotiations. Typically, the price listed online is the price you'll pay. If so, there's no need to play hardball with a salesperson.\n5.  The car can be delivered practically anywhere. Oftentimes, you can buy a car online and then have it brought to your home, your office or another location.\nHere are five of the cons of buying online.\n1.  There's no up-close look at the car. You may see detailed photos and videos of a car, but when you're buying online, you usually can't inspect it in person before you buy.\n2.  You can't take a test drive. Buying a car online typically means you can't test-drive it first. However, more and more online sellers are providing this option.\n3.  There's less room for negotiation. It's nice to skip the process of haggling, but it also means you may not be able to negotiate for a lower price.\n4.  You may not get to choose your lender. If you decide to buy online, you may be required to take out a car loan from just one lender or from one of several lenders that have been preselected.\n5.  You'll have less flexibility with trade-ins. When you want to trade in your car, you may find that there's less wiggle room in terms of the value of your trade-in.\nDespite those cons, buying and selling cars online can be safe, as long as you take the proper precautions to protect yourself. Among the reputable online marketplaces for buying and selling cars are Autotrader, CarGurus, CarMax, CarsDirect, Carvana, eBay Motors and Vroom. END
 TITLE: Online Car-Buying Scams to Watch Out For CONTENT: What to Do if You Are a Victim of an Auto Scam\n----------------------------------------------\nIf you've been victimized by an online car-buying or car-selling scam, consider taking these six steps:\n1.  Contact your state attorney general's office and your local Better Business Bureau.\n2.  File a complaint with the FBI's Internet Crime Complaint Center and the National Consumer League's fraud center.\n3.  Report the fraud to the Federal Trade Commission.\n4.  If the fraud involved a wire transfer, reach out to the company or financial institution that handled the transfer.\n5.  If you provided personal information to a scammer, think about changing relevant usernames or passwords.\n6.  Be sure to monitor your credit reports for any suspicious activity tied to identity theft. END
 TITLE: How to Protect Your Identity During the Homebuying Process CONTENT: 6 Steps to Help Protect Your Identity When Buying a Home\n--------------------------------------------------------\nThe homebuying process can be stressful for some, and the added threat of identity theft doesn't help. While there's no surefire way to avoid identity theft, here are six things you can do to minimize your exposure to it. END
 TITLE: How to Protect Your Identity During the Homebuying Process CONTENT: What to Do if You're a Victim of Identity Theft\n-----------------------------------------------\nIf you've already noticed signs of identity theft, it's crucial that you take steps immediately to address the issue. The longer a fraudster has access to your information, the more damage they can do. Here are some steps to help you get started:\n*   File a police report with your local police department, as well as an identity theft report with the Federal Trade Commission.\n*   Review your credit reports for accounts you don't recognize and consider filing a dispute with the credit bureaus to request to have them investigated.\n*   Add a fraud alert to your credit reports, which asks lenders to contact you in the future before issuing credit.\n*   If a thief has managed to steal your bank account, debit card or credit card information, contact your financial institution and alert them of the fraud so they can create a new account or card for you.\n*   Change your passwords to any of your important financial accounts, as well as your email account.\nThroughout this process, it's also important to continue to stay on top of your credit. You can get a free copy of your credit from all three credit bureaus through AnnualCreditReport.com. You can also check your FICO® Score and credit reports for free directly through Experian. Even after you believe you've completely recovered from identity theft, stay vigilant in case your information is still out there. END
 TITLE: How to Avoid Phishing Scams CONTENT: What Exactly Is Phishing?\n-------------------------\nPhishing is an attempt to get recipients to divulge sensitive information such as usernames, passwords or Social Security numbers, or to transfer money to the scammer through a variety of methods.\nUsually, this is done through email, but phishing via text message is becoming more common. The global cybersecurity organization APWG detected more than 600,000 unique phishing websites in the fourth quarter of 2020.\nChances are good that at least once a day, a phishing email lands in your work or personal inbox: 57% of corporate information security professionals polled by ProofPoint in its 2020 State of the Phish report said their organization experienced a successful phishing attack in 2020.\nIt's worth keeping an eye out for these scams year round, but you may see certain scams pick up around certain times of the year. For example, phishing for tax information is common at the beginning of the year, and phishing targeted at shoppers ramps up around the holidays when a lot of people are buying gifts. END
 TITLE: How to Avoid Phishing Scams CONTENT: How to Spot a Phishing Scam\n---------------------------\nWhether they're aimed at a business executive or a consumer, phishing emails have some common characteristics. Learning to spot the warning signs that an email is bogus could help you avoid falling victim to a phishing scam.\nBe alert for emails that:\n*   **Use a generic salutation rather than your name**: For example, an email from your mortgage company that begins \"Dear account holder\" instead of actually addressing you by name.\n*   **Urgently require you to take a specific action**: An email purporting to be from your credit card company may say your account will be frozen unless you click a link in the email and complete a form.\n*   **Contain implied or explicit threats**: For example, \"confirm your user credentials immediately or your account will be permanently frozen.\"\n*   **Have a suspicious sender email address**: Although some phishers may be able to fake an email address that looks credible, phishing emails often come from addresses that don't make sense. For example, a personal email address in the sender line of an email claiming to be from your bank.\n*   **Have a wrong or bogus recipient address**: Scammers may know one of your email addresses, but not the one you gave to the company they're pretending to be. For example, you receive an email from your credit card company on your business account, even though you provided your personal email address as contact information.\n*   **Contain URLs that don't go where they say they'll go**: Often, scammers will embed hyperlinks into an email that directs you to a fake site where they collect your information or load malware onto your computer. Before clicking on links in an email, hover your mouse over it to see what the actual URL looks like to make sure it will take you where it says it will.\n*   **Include poor grammar or spelling errors**: Multiple typos or spelling errors could be a sign the email does not come from a legitimate source.\n*   **Have an email or web address that is not quite right**: Scammers may change a letter or word in a URL or email address so it closely resembles the real thing.\n*   **Include attachments**: It's unusual for a legitimate financial institution or company to send account information as an attachment, so be wary of any email you receive that says a statement or credit card bill is attached. Opening a suspect attachment could allow malicious software to download onto your computer.\n*   **Request or demand information the company they're imitating should already have**: For example, your bank should never need you to verify your account number because they already have it. Likewise, the IRS already knows your Social Security number—plus the IRS only contacts taxpayers by U.S. mail when money is owed.\nAs you make your way through your personal and business inboxes, keep an eye out for all of these signs that could point to a scam. END
 TITLE: How to Avoid Phishing Scams CONTENT: What if You Fall Victim to a Phishing Scam?\n-------------------------------------------\nEven if you're vigilant, you may still mistake something fraudulent for something that seems legitimate. If you suspect you've been the victim of a phishing scam, there are a few steps you may want to take:\n*   Contact the company or financial institution with whom you have the account using the main company website and explain the details.\n*   If you're on a personal computer, ensure your computer's antivirus protection is up to date with the latest version and run a scan for viruses and malware. If you're using a work computer or email, you'll want to contact your company's information security or IT team immediately so they can help you with any potential concerns or issues.\n*   Keep a close eye on your credit card and bank accounts, and contact any companies who need to be on the lookout for withdrawals or charges. You can also check your credit report regularly to keep an eye out for any new accounts or inquiries. If you suspect anything is off on your credit report, you can place a fraud alert on your credit file. Experian IdentityWorks℠ members also get alerts to help with identity theft protection.\nKeep in mind that causing a delay by trying to fix something yourself can result in more time for fraudsters to cause damage. Contact the experts as soon as possible for help resolving things quickly and efficiently. END
 TITLE: How to Avoid Phishing Scams CONTENT: How to Protect Yourself From Phishing Scams\n-------------------------------------------\nIn addition to keeping an eye out for phishing emails and text messages, here are some other steps you can take to protect your information from phishing scammers:\n*   Set up multi-factor authentication on your online accounts. This requires anyone trying to access your account to enter a code sent to your phone number, email address or an authentication app.\n*   Use a secure password manager to help you create and keep track of unique passwords for each of your online accounts.\n*   Avoid clicking on unknown links.\n*   Install security software on your computer and keep it up to date at all times.\n*   Set your mobile devices to install updates automatically to avoid security vulnerabilities present in older operating system versions.\n*   Backup all of your data on your electronic devices. END
 TITLE: How to Avoid Phishing Scams CONTENT: Check to See if Your Information Has Been Compromised\n-----------------------------------------------------\nSometimes, it can be difficult to know that your personal information has been stolen because an identity thief doesn't use it immediately.\nExperian's free dark web scan can help you find out if your information has been stolen and put up for sale on one of hundreds of thousands of webpages on the dark web. This one-time scan can give you the information you need to take the right steps to protect yourself. END
 TITLE: Can Facial Recognition Technology Protect You From Fraud? CONTENT: What Is Facial Recognition?\n---------------------------\nIf you've bought a smartphone in the past few years, you're probably already familiar with the concept of facial recognition. This new form of biometrics uses the shape of your face as password instead of a fingerprint or a typed-in passcode.\nApple, for example, completely moved away from fingerprint scanning to a technology they call Face ID with its most recent iPhone models. According to the tech giant, there's a 1 in 50,000 chance someone else could open your phone with their fingerprint, but those chances dwindle to 1 in 1 million with its facial recognition technology.\nIt's not just phones that use the technology, though. Facebook, for example, uses it when you upload a photo with other people. The website uses an algorithm to guess who the people in the photo are and whether you want to tag them. Google does the same thing with its Photos app.\nFacial recognition technology may also be used by:\n*   The U.S. government\n*   Colleges\n*   Retailers\n*   Airlines\n*   Religious groups\n*   Marketers and advertisers\n*   Law enforcement END
 TITLE: Can Facial Recognition Technology Protect You From Fraud? CONTENT: Is Facial Recognition Safe?\n---------------------------\nAlthough facial recognition can provide more security than a simple passcode or a fingerprint scanner, it has some weaknesses.\nFor starters, not all applications are created equally. Apple, for instance, creates a 3D map of your face using an infrared camera, dot projector and flood illuminator. This system effectively foils those who would try to use a 2D picture of you to gain access to your phone and private accounts.\nOn the other hand, a consumer protection organization in the Netherlands, Consumentenbond, tested 110 different smartphone models and 42 of them unlocked with a good photo of the user.\nNo technology is infallible, after all, and some have begun to exploit the flaws found in facial recognition systems. Experian found that scammers can create \"Frankenstein faces\" using artificial intelligence to combine the facial features of multiple people to form a new identity. This form of synthetic fraud, which combines real and fake information to create an identity, complicates matters for businesses that rely on facial recognition technology to prevent fraud.\nSynthetic fraud shouldn't necessarily cause you much worry as far as your use of facial recognition technology is concerned, but there are other ways it can affect you. Since synthetic fraud uses both real and fake data to create a new fraudulent identity, your personal information—including your Social Security number—may get caught up in the growing scheme. That's why it's important to think about identity protection in an all-encompassing way. END
 TITLE: Can Facial Recognition Technology Protect You From Fraud? CONTENT: What Can You Do to Protect Yourself?\n------------------------------------\nEven in its best forms, facial recognition technology can be fooled and hacked. To best protect yourself, consider using a different way to open your mobile device, especially if you don't have one with the highest standard of protection. You may also opt to turn off facial recognition entirely and rely on passcode and passwords, which can help you maintain privacy.\nOf course, it can be difficult to avoid facial recognition technology entirely, especially when you're in a public place and don't know that it's being used.\nFor more protection, consider signing up for an identity monitoring service. For example, Experian IdentityWorks℠ provides fraud resolution services, as well as up to $1 million in identity theft insurance. You'll also get access to credit monitoring across all three credit bureaus, which can help you spot potential fraud early before it wreaks havoc on your life, along with many other valuable features. END
 TITLE: Can Facial Recognition Technology Protect You From Fraud? CONTENT: Make Fraud Prevention a Priority\n--------------------------------\nFacial recognition technology is imperfect and can create an opportunity for someone to steal your identity and use it for nefarious purposes. It can also be hacked, making it possible for criminals to fool it.\nBut synthetic fraud is just one form of identity theft, and it's important to ensure you're covered in all areas. Other ways to help prevent and quickly address fraud include maintaining strong passwords, browsing on secure networks, limiting data sharing and keeping an eye out for phishing scams.\nYou can also consider signing up to get free credit monitoring through Experian, which can help you spot fraud. The earlier you spot fraud, the quicker you can take action to hopefully prevent further damage. END
 TITLE: Should You Use a Password Manager? CONTENT: What Is a Password Manager?\n---------------------------\nPassword managers—used by fewer than 15% of Americans as of 2019, according to the Google poll—store your login information, such as usernames and passwords. Throughout the course of a day, you might access email accounts, social media accounts, e-commerce sites and other online destinations. Since each site you have an account with typically has its own login requirements, you could easily find yourself using dozens of usernames and passwords every day.\nYou can download a password manager app or install a browser plugin that'll automatically enter your login information when you go to sign into a website. To unlock the \"vault\" containing all of your passwords, you'll use one \"master\" password. Some password managers even generate individual passwords for the sites you visit.\nBecause your passwords are securely stored, password managers make it easier to maintain secure, unique passwords. For instance, instead of using a simple, easy-to-remember password for all your accounts, you can use your password manager to store complex passwords (like Gn$3kj$g34s) that are unique to your every account. Not only will those passwords be much harder to guess, their uniqueness is an additional security measure. When you reuse passwords, every account that uses the same password becomes vulnerable if one account is compromised.\nSome password managers are free, but more feature-rich services tend to charge a monthly subscription fee. END
 TITLE: Should You Use a Password Manager? CONTENT: What Are the Pros and Cons of a Password Manager?\n-------------------------------------------------\nA password manager can help you achieve online security, but they do come with some drawbacks. Here are some of the pros and cons of using a password manager. END
 TITLE: Should You Use a Password Manager? CONTENT: Are Password Managers Really Safe?\n----------------------------------\nOnline security experts generally recommend a password manager as the best method for keeping all of your passwords safe. While password managers defend against unwelcome visitors by encrypting data, they may themselves be vulnerable to cyberintruders. When you use a password manager, you'll need to have some faith that the company behind the technology isn't cutting any corners with the security of your data. Even with these risks in mind, password managers are still a smart alternative to juggling dozens of passwords in your head or writing them on sticky notes. END
 TITLE: Should You Use a Password Manager? CONTENT: What Are the Top Password Managers?\n-----------------------------------\nIf you're committed to using a password manager, how do you decide which one to pick? Here are five highly rated options that might be right for you. Most of the services below come with basic free versions and subscription versions that have more features, but the free versions are good enough for most users.\n*   **Bitwarden**: Bitwarden offers three password manager plans: a free basic version, a $10-a-year premium version and a $40-a-year family version. The free version is limited to one user, and includes the ability to sync all of your devices with Bitwarden and to generate secure passwords.\n*   **Dashlane**: Dashlane offers three password manager plans: a free version, a $59.99-a-year premium version and an $89.99-a-year family version. Highlights of the free version include the ability to store as many as 50 passwords (limited to one device) and the availability of personalized security alerts.\n*   **NordPass**: NordPass offers three password manager plans: a free version, a $29.88-a-year premium version and a $47.88-a-year family version. The free version syncs across all devices and saves unlimited passwords.\n*   **1Password**: 1Password offers two password manager plans: a $35.88-a-year basic version and a $59.88-a-year family version. Highlights of the basic version include unlimited devices and unlimited passwords. 1Password does not have a free version, but offers a 14-day free trial.\n*   **LastPass**: LastPass offers three password manager plans: a free version, a $36-a-year premium version and a $48-a-year family version. The free version is limited to one user and one device type (desktop or mobile), includes access to a password generator and the ability to share passwords with family and friends. END
 TITLE: Should You Use a Password Manager? CONTENT: How Else Can I Protect My Information Online?\n---------------------------------------------\nAside from protecting your passwords, what else can you do to safeguard your information online? Here are five tips.\n1.  Don't share too much personal information online. Even simple things like your birthdate and hometown could lead to identity theft and other problems in the wrong hands.\n2.  Be careful with Wi-Fi. Free Wi-Fi provided in public places like airports and coffee shops may be less secure than your Wi-Fi network at home.\n3.  Treat links and attachments with caution. If you receive emails or text messages with links or attachments from unfamiliar sources, it may be an attempt to trick you into sharing personal data like credit card and Social Security numbers.\n4.  Install security software. Technology like anti-malware and anti-virus software can stop hackers, cyberthieves and others from snooping around in your computer.\n5.  Keep an eye out. Services like Experian's dark web scan can help you find out whether your information has been compromised. Identity theft protection from Experian can also help you keep your personal information safe.\n6.  Use two-factor authentication. This is the security feature that sends a text message or email with a code or link you'll use to verify your identity. It may be a mild inconvenience, but using it whenever possible can put a stop to a hacker getting into your account.\nProtecting your personal information online can involve many strategies and requires a careful eye to spot threats. Using a password manager won't cover every aspect of your online and financial life, but it'll help you take care of one very important part of it. END
 TITLE: How to Check for Identity Theft CONTENT: How Do I Know if My Identity Has Been Stolen?\n---------------------------------------------\nYour credit report is a reflection of the credit accounts that have been opened in your name—credit cards, student loans, mortgages, auto loans, you name it. If a fraudster opens a new account using your personal information, it will pop up on your credit report (typically within a month or two). That's why monitoring your credit report is an easy and effective way to uncover identity theft in its early stages. An unfamiliar new account, as well as errors in your personal information such as your Social Security number, could indicate potential identity theft.\nOther things that could be warning signs that your identity has been stolen include:\n*   Statements or bills for accounts you never opened arriving in the mail\n*   Statements or bills for legitimate accounts not showing up\n*   You're unexpectedly denied credit\n*   Unauthorized bank transactions or withdrawals\n*   Notification that a tax return has been filed on your behalf without your knowledge\n*   Unauthorized authentication messages for accounts you don't recognize END
 TITLE: How to Check for Identity Theft CONTENT: How Does Identity Theft Happen?\n-------------------------------\nThere are many types of identity theft, which means red flags of fraud can take various forms. That said, certain types of fraud are more commonplace than others. Identity theft that results in government benefit fraud or new credit card accounts being created in your name is more common than, say, student loan fraud, according to the FTC. And recently, Javelin Strategy & Research found that identity thieves appear to be moving more toward account takeovers, which is when they gain access to one or more of your accounts to make unauthorized transactions or money transfers.\nWhat leads to identity theft can vary as well. Identity thieves may defraud consumers by stealing their wallet or by gaining access to important documents during a home burglary, but there are many common ways identity theft can happen:\n*   **Mail fraud**: Thieves who intercept your mail could get their hands on everything from checks in your name to credit and debit cards.\n*   **Online shopping fraud**: Unsecured public Wi-Fi networks can be leveraged to steal your information when you're shopping online. More sophisticated operations involve phony merchant websites that aim to collect your payment information at checkout.\n*   **Tax identity theft**: This happens when someone files a tax return in your name, then makes off with your tax refund. You might not become aware of this fraud until you go to file your taxes.\n*   **Senior identity theft**: There's no shortage of scams that target senior citizens. It can involve calling the victim and posing as an IRS agent or as someone with the Social Security Administration, then coaxing them to divulge personal information.\n*   **Medical identity theft**: This kind of fraud occurs when someone poses as someone else to receive medical care in their name.\nHow to Protect Yourself From Identity Theft\n-------------------------------------------\nThe more you're able to protect yourself from identity theft, the less likely you are to be victimized. These proactive measures are centered around keeping your personal data safe from prying eyes, and creating a stronger barrier between yourself and identity thieves:\n*   **Be mindful of your passwords.** Create strong passwords, and be sure not to use the same password more than once. Secure password managers like 1Password and Bitwarden are solid options that can help you keep track of them. In addition to keeping strong passwords, opt for two-factor authentication whenever possible and always password-protect your devices.\n*   **Never share personal information over the phone.** Legitimate institutions—including banks, the IRS and the Social Security Administration—will never call you and demand that you share things like your Social Security number or bank account number. Scammers, on the other hand, will.\n*   **Periodically check your credit reports.** Coming across suspicious activity on your credit reports, such as new accounts you don't recognize, is a quick way to identify potential fraud. You can get free copies of your credit reports from all three major credit bureaus through AnnualCreditReport.com. You can also check your credit report (and score) for free with Experian.\n*   **Be careful using public Wi-Fi.** Only use secure, trusted networks when banking, paying bills or doing online shopping. The safest place to handle sensitive needs is at home on your own network.\n*   **Monitor your mail.** If you set up an Informed Delivery account through the United States Postal Service, you'll get alerts of incoming mail before it arrives. (This way you'll know if something is missing.) It's also smart to shred any mail containing your personal information before trashing it.\n*   **Don't keep your Social Security card in your wallet.** The same goes for credit cards you rarely use. The fewer items you have in your wallet, the easier it'll be to clean up the mess if your wallet is lost or stolen.\n*   **Review notices from your health care providers and insurance company.** Look for anything out of the ordinary, like unfamiliar bills or dates of service that seem suspicious. These could be signs of medical identity theft.\nYou can create an account with Experian and sign up for free credit monitoring, which will alert you to things like changes in your credit score that can indicate fraud. You might also consider paying for the suite of identity protection services included in Experian CreditWorks℠ Premium. Experian CreditWorks℠ features include three-bureau credit monitoring, an up to $1 million ID theft insurance policy and dark web surveillance that monitors the dark web for your personal information.  \nWhat Can I Do if I Suspect Identity Theft?\n------------------------------------------\nIf you think you've been the victim of identity theft, the first order of business is to contact the companies affected by the fraud. For instance, if it involves one of your debit or credit cards, you'll want to call the bank or credit card issuer to have them cancel the card and issue a new one with a different number to prevent more unauthorized charges. Change account details such as usernames, PINs and passwords associated with the card to prevent further fraud.\nOnce you've secured the affected accounts, consider reporting it to government agencies. Doing so can unlock resources and support while you work on undoing the damage. Filing a police report may be in order, especially if you think reporting it can help law enforcement catch the perpetrator. The FTC's fraud reporting website, IdentityTheft.gov, is where you'll find detailed instructions on dealing with various forms of identity theft.\nTo be safe, you'll also want to review your credit report for any information that's appearing as a result of fraud. If you find any, contact the company reporting it and request to have it removed. If that doesn't work, you can dispute credit report information with each of the three major credit bureaus (Experian, Equifax and TransUnion). Checking your credit reports can also alert you to fraud you didn't know about. However, it may take a few monthly billing cycles for a fraudulent new credit account to appear on your report, so be sure to continue to monitor your credit regularly going forward.\nYou can add another layer of protection by freezing your credit or setting up a fraud alert, which are both free. The latter appears on your credit report and instructs lenders to take additional measures to verify your identity when processing new applications in your name. A credit freeze goes a step further and actually prohibits new creditors from pulling your credit report until you unfreeze it. Without access to your credit report, lenders cannot approve any applications for new credit. Remember, though, that freezes and fraud alerts will also restrict legitimate new applications for credit, so you'll likely need to take extra steps if you plan on applying for a loan or credit card while those safeguards are in place.  \nThe Bottom Line\n---------------\nYou can't fight back against fraud if you don't know it's happening. Understanding how to check for identity theft can help you uncover wrongdoing before it gets worse. Monitoring your credit report is a simple way to spot signs of identity theft so that you can respond as quickly as possible. Beyond that, taking steps to prevent fraud is one of your strongest weapons. END
 TITLE: How to Check for Identity Theft CONTENT: How to Protect Yourself From Identity Theft\n-------------------------------------------\nThe more you're able to protect yourself from identity theft, the less likely you are to be victimized. These proactive measures are centered around keeping your personal data safe from prying eyes, and creating a stronger barrier between yourself and identity thieves:\n*   **Be mindful of your passwords.** Create strong passwords, and be sure not to use the same password more than once. Secure password managers like 1Password and Bitwarden are solid options that can help you keep track of them. In addition to keeping strong passwords, opt for two-factor authentication whenever possible and always password-protect your devices.\n*   **Never share personal information over the phone.** Legitimate institutions—including banks, the IRS and the Social Security Administration—will never call you and demand that you share things like your Social Security number or bank account number. Scammers, on the other hand, will.\n*   **Periodically check your credit reports.** Coming across suspicious activity on your credit reports, such as new accounts you don't recognize, is a quick way to identify potential fraud. You can get free copies of your credit reports from all three major credit bureaus through AnnualCreditReport.com. You can also check your credit report (and score) for free with Experian.\n*   **Be careful using public Wi-Fi.** Only use secure, trusted networks when banking, paying bills or doing online shopping. The safest place to handle sensitive needs is at home on your own network.\n*   **Monitor your mail.** If you set up an Informed Delivery account through the United States Postal Service, you'll get alerts of incoming mail before it arrives. (This way you'll know if something is missing.) It's also smart to shred any mail containing your personal information before trashing it.\n*   **Don't keep your Social Security card in your wallet.** The same goes for credit cards you rarely use. The fewer items you have in your wallet, the easier it'll be to clean up the mess if your wallet is lost or stolen.\n*   **Review notices from your health care providers and insurance company.** Look for anything out of the ordinary, like unfamiliar bills or dates of service that seem suspicious. These could be signs of medical identity theft.\nYou can create an account with Experian and sign up for free credit monitoring, which will alert you to things like changes in your credit score that can indicate fraud. You might also consider paying for the suite of identity protection services included in Experian CreditWorks℠ Premium. Experian CreditWorks℠ features include three-bureau credit monitoring, an up to $1 million ID theft insurance policy and dark web surveillance that monitors the dark web for your personal information. END
 TITLE: How to Check for Identity Theft CONTENT: What Can I Do if I Suspect Identity Theft?\n------------------------------------------\nIf you think you've been the victim of identity theft, the first order of business is to contact the companies affected by the fraud. For instance, if it involves one of your debit or credit cards, you'll want to call the bank or credit card issuer to have them cancel the card and issue a new one with a different number to prevent more unauthorized charges. Change account details such as usernames, PINs and passwords associated with the card to prevent further fraud.\nOnce you've secured the affected accounts, consider reporting it to government agencies. Doing so can unlock resources and support while you work on undoing the damage. Filing a police report may be in order, especially if you think reporting it can help law enforcement catch the perpetrator. The FTC's fraud reporting website, IdentityTheft.gov, is where you'll find detailed instructions on dealing with various forms of identity theft.\nTo be safe, you'll also want to review your credit report for any information that's appearing as a result of fraud. If you find any, contact the company reporting it and request to have it removed. If that doesn't work, you can dispute credit report information with each of the three major credit bureaus (Experian, Equifax and TransUnion). Checking your credit reports can also alert you to fraud you didn't know about. However, it may take a few monthly billing cycles for a fraudulent new credit account to appear on your report, so be sure to continue to monitor your credit regularly going forward.\nYou can add another layer of protection by freezing your credit or setting up a fraud alert, which are both free. The latter appears on your credit report and instructs lenders to take additional measures to verify your identity when processing new applications in your name. A credit freeze goes a step further and actually prohibits new creditors from pulling your credit report until you unfreeze it. Without access to your credit report, lenders cannot approve any applications for new credit. Remember, though, that freezes and fraud alerts will also restrict legitimate new applications for credit, so you'll likely need to take extra steps if you plan on applying for a loan or credit card while those safeguards are in place. END
 TITLE: 7 Signs of a Personal Loan Scam CONTENT: 1\\. The Lender Guarantees You'll Be Approved\n--------------------------------------------\nIf you don't have the best credit history, you may get excited when you come across a personal loan that offers guaranteed approval. Don't get too excited, as legitimate lenders never promise that loan applications will be automatically approved.\nSince granting a personal loan is a risk, reputable lenders take the time to review a potential borrower's credit history and income before approving their request for a loan. Ads or websites that contain verbiage such as \"Bad credit? No problem\" or \"Everyone is approved\" are signs that a lender could be trying to take advantage of you. END
 TITLE: 7 Signs of a Personal Loan Scam CONTENT: 2\\. The Lender Is Not Registered in Your State\n----------------------------------------------\nAccording to the Federal Trade Commission (FTC), lenders must be registered in the states where they do business. If a personal loan lender does not list any states on their website, you may be dealing with a fraudulent one. It's a good idea to contact your state attorney general's office to find out whether the lender is registered in your state.\nIf a lender tells you they are not a U.S. company or are not required to register because they conduct business online, they are either operating a scam or lending illegally. END
 TITLE: 7 Signs of a Personal Loan Scam CONTENT: 3\\. The Lender Pressures You to Act Immediately\n-----------------------------------------------\nOne of the most common red flags of a personal loan scam is a lender that gives you a deadline to take out a loan. If they tell you their offer will expire soon or you must act by tomorrow, they're likely up to no good. Taking out a personal loan is a big decision, and a trustworthy lender will not pressure you to make a move right away. END
 TITLE: 7 Signs of a Personal Loan Scam CONTENT: 4\\. The Lender Does Not Have a Physical Address\n-----------------------------------------------\nIf the lender lists a physical address on its website, look up the address on a mapping website like Google Maps. If the address doesn't exist or the lender lists a P.O. box as their address, chances are the lender is a scammer. A legitimate lender will have a valid physical address that's clearly listed on their website. END
 TITLE: 7 Signs of a Personal Loan Scam CONTENT: 5\\. The Lender Requires Upfront Payment\n---------------------------------------\nReputable lenders do not require you to pay a penny before you receive your loan. If you come across a personal loan lender that demands a processing, insurance or origination fee before they can approve you, walk away fast. The lender is likely a scammer hoping to make a quick buck off of you.\nWhile legitimate lenders may charge application, appraisal and credit report fees, these are typically deducted from the amount you borrow. END
 TITLE: 7 Signs of a Personal Loan Scam CONTENT: 6\\. The Lender Reaches Out to You First\n---------------------------------------\nIf a personal loan lender contacts you via phone or mail, do not respond. Trustworthy lenders do not advertise their services by cold-calling potential borrowers, sending them letters in the mail or arriving at their door. If a lender reached out to you first, regardless of whether it's online, in person or via mail, they may be a scammer trying to get access to your banking information. END
 TITLE: 7 Signs of a Personal Loan Scam CONTENT: 7\\. The Lender's Website Isn't Secure\n-------------------------------------\nThere are certain signs that may indicate a lender's website isn't secure. If you don't see an \"s\" after \"http\" on their site address or a padlock symbol on any pages where you're asked to provide confidential information, you're on an insecure website. The lender is either not concerned about safety or may be a scammer who is trying to steal your money. END
 TITLE: 7 Signs of a Personal Loan Scam CONTENT: What to Do if You've Been Scammed\n---------------------------------\nIf you fall victim to a personal loan scam, be sure to call the police immediately and file a report. While they may not be able to do much, especially if the scammer is an online lender, they can make the report public and help others avoid the same scam.\nIn addition to contacting the police, file a complaint with the [FTC Internet Crime Complaint Center](;panel1-1). This can also help you report the crime publicly and potentially shut down the scammer. The faster you take action after you've been scammed, the less time the scammer will have to target innocent people. END
 TITLE: 7 Signs of a Personal Loan Scam CONTENT: Shop Legitimate Personal Loan Lenders\n-------------------------------------\nBy keeping these red flags in mind and doing your research before committing to a personal loan, you can avoid being conned to this constantly growing crime. If you need a personal loan from a reputable lender, check out Experian CreditMatch™ marketplace lenders. END
 TITLE: When Should You Lock Your Credit? CONTENT: Difference Between a Credit Lock, a Credit Freeze and a Fraud Alert\n-------------------------------------------------------------------\nCredit freezes and credit locks both limit others from viewing your credit without your permission. Fraud alerts ask creditors to verify your identity before issuing credit in your name. If a creditor can't review your reports or verify your identity, it won't be able to extend a new credit card or loan. So, if someone applies for an account in your name while one of the three following measures are in place, they shouldn't be able to get approved.\nHaving a fraud alert on your credit report will not prevent you from being able to open a new account once you provide proof of your identity. With a freeze or lock, you must first remove the freeze or unlock your file before you can apply.\nWhile the benefits of a credit lock and a credit freeze are similar, how they work differs significantly. Fraud alerts are a convenient option if you have reason to believe you're a fraud victim. Here's an overview: END
 TITLE: When Should You Lock Your Credit? CONTENT: When Is the Right Time to Lock Your Credit?\n-------------------------------------------\nYou may consider locking your credit if you believe someone has accessed your personally identifiable information and is using it to apply for credit or services in your name. If you believe your Social Security number has been compromised or if one of your creditors experienced a data breach, taking safety measures right away can help prevent heartache later.\nEven if your credit file is locked, it's important to continue monitoring your credit report. You can do this on your own or with help from Experian. Be sure to look out for major red flags, including hard inquiries you don't recognize, new credit accounts opened without your permission and unexpected changes to your credit scores. END
 TITLE: When Should You Lock Your Credit? CONTENT: You can set up a credit lock online, through any of the three credit bureaus. Each bureau has a slightly different process, but you can sign up for Experian CreditWorks℠ Premium to set up a credit lock with Experian, get three-bureau credit monitoring and up to $1 million in identity theft insurance.\nWhen you're ready to apply for a loan or a credit card, or to let a potential employer perform a background check, you'll need to unlock your credit. Removing a credit lock is simple, just log into your account or use your mobile device to swipe or click on your security preference and unlock your file. END
 TITLE: When Should You Lock Your Credit? CONTENT: Keep Your Information Safe\n--------------------------\nA credit lock can prevent certain types of fraud, such as new credit accounts being created without your permission, but there are other types of fraud it's not designed to protect against. Fraudsters who access your mail or your online accounts can still try to use your credit card, or attempt tax fraud or insurance fraud by using your personal information.\nAlong with monitoring your credit for unusual activity, be sure to always practice caution with your sensitive information. Shred personal mail and account statements before throwing them away. Avoid carrying your Social Security card in your wallet or car and never give out personal information to anybody you don't trust. Make sure you're aware of common scams so you can always take the best measures to keep you and your family safe. END
 TITLE: How to Catch Up On Retirement Savings After Divorce CONTENT: The Impact of Divorce on Retirement\n-----------------------------------\nA 2018 analysis by the Center for Retirement Research at Boston College found that divorce can devastate retirement savings. The researchers explain that both wealth and earnings are typically lower for previously divorced individuals compared with those who haven't experienced divorce. Divorced households are 7 percentage points more at risk to not have enough money for retirement.\nThis is not surprising considering that the legal process of a divorce itself is expensive. In a survey by legal site NOLO, respondents who used attorneys through the entire divorce process paid $12,900 on average, and the median cost for all survey respondents was $7,500.\nAdditionally, the process of divorce causes some to give up savings, including retirement accounts. For those who live in a community property state, most assets acquired during the marriage are presumed to be joint property to be divided equally upon divorce unless there's a prenuptial agreement stating otherwise. There are exceptions for assets considered separate property, such as those acquired before the marriage or inheritance.\nIf you live in a community property state and don't have any legal documents stating otherwise, you may have to give your ex-spouse half of your retirement savings. Some who've gone through divorce then owe a portion of their income to child support, spousal support or alimony payments, which can make it harder to scrape together savings. This financial fallout can leave you behind on your retirement goals. END
 TITLE: How to Catch Up On Retirement Savings After Divorce CONTENT: While divorce can set you back financially, there are some strategies that can help you accelerate your retirement savings after divorce.\n*   **Increase your retirement contribution.** If you regularly contribute to an IRA or 401(k) that's now partly depleted, try setting aside a larger percentage of your income to help make up for what you lost. However, some divorcees may actually have less to contribute due to the higher cost of living without a partner. If you're unable to increase your contribution now, plan for how you'll do it once your financial situation improves.\n*   **Tighten your budget.** If you no longer have someone to split bills with, and especially if you're paying steep legal costs from the divorce, it may unfortunately be necessary to reassess your budget and cut expenses. Review recent bank and credit card statements and identify spending that could be cut, even if temporarily. With expenses reduced, it may be easier to avoid taking on debt or set aside some additional retirement savings.\n*   **Earn additional income.** Sometimes budget cuts aren't enough and it's necessary to find ways to make extra money. This could look like trying to obtain a raise at your current job, taking on a part-time job, or doing a flexible side hustle like walking dogs, babysitting or delivering groceries in your spare time.\n*   **Take advantage of catch-up contributions.** Because retirement accounts like IRAs and 401(k)s are tax-advantaged, the government limits how much you can contribute to them each year. For those aged 50 and above, however, the IRS permits a larger annual contribution to \"catch up\" and set more aside in these retirement accounts. If you're 50 or older and able to set aside more money, take advantage of the catch-up options to replenish your retirement accounts. END
 TITLE: How to Catch Up On Retirement Savings After Divorce CONTENT: Putting Off Retirement\n----------------------\nSome divorces may leave individuals with such depleted savings that even budget cuts, extra income and increased contributions aren't enough to keep retirement on track. If you've done the math and your current savings rate won't allow you to live comfortably in retirement, it could mean having to push back your retirement date.\nThis is a huge decision, so it's wise to hire a financial planner or advisor to guide you. They can review your new financial situation and help you get a grasp on what you need in order to retire, and if there are any alternatives or if retirement does need to be put off to make up for a shortfall. END
 TITLE: How to Catch Up On Retirement Savings After Divorce CONTENT: Don't Forget Your Credit\n------------------------\nWhile a divorce won't show up on your credit report or directly affect your credit score, its repercussions can take a toll on your credit. For example, if you end up taking on a larger share of debt, if you miss payments on any bills during a confusing transition period, or if your ex-spouse makes late payments on accounts that still have your name on them, your credit can be negatively affected.\nTo ensure divorce doesn't hurt your credit, consider monitoring your credit carefully until long after the process is completed. You'll be able to see which accounts are still tied to your name, so you can ensure the bills are paid on time, and it can help you figure out if anything hasn't been updated properly. You may also find some room for improvement by watching how your score changes. Divorce can be financially devastating, but by being proactive, you can help get your life and retirement savings back on track. END
 TITLE: How to Pay for a Funeral CONTENT: You may not be emotionally equipped to focus on finances when you're planning a funeral for a loved one or friend, but you can take comfort in the fact that there are a number of ways to keep costs in check. Here are some of those ways.\n### Compare Costs at Funeral Homes\nYou might be able to save several thousand dollars if you shop around among local funeral homes, the Funeral Consumers Alliance says. The Federal Trade Commission (FTC) recommends checking prices at two or more funeral homes, which you can do online or by calling the funeral homes you're considering. Funeralocity.com lets you compare pricing at funeral homes and cremation providers.\nFuneral providers are required by law to provide you a list of prices for goods and services. If the company doesn't know precisely how much a certain item will cost, they must give you a written \"good-faith estimate.\" The FTC notes that you may be able to save money by supplying a casket or urn on your own rather than buying it from a funeral home.\n### Make Economical Choices\nOptions to help reduce the cost of a funeral include:\n*   **Direct cremation:** This involves cremation without embalming, viewing or visitation. The price for this service could be as low as $800.\n*   **Direct burial:** This approach eliminates the need for embalming, viewing or visitation and could save several thousands of dollars.\n*   **Home funeral:** In all but nine states, you can carry out the entire funeral at home. This option involves minimal costs.\n### Work Out a Payment Plan\nTypically, a funeral home wants all goods and services to be paid upfront. However, you may be able to negotiate a plan to pay off part of the bill over time. Beware of taking out a loan or using a credit card to cover funeral expenses, as this may add to your debt.\n### Save Money in Advance\nIf you want to spare your family the cost of arranging your funeral, consider setting aside even a small amount each month toward expenses for your own funeral.\n### Open a Payable-Upon-Death Account\nA payable-upon-death account at a bank ensures the money you save for your funeral will be released right after your death to whomever you designate as your beneficiaries. You can take your money out of one of these FDIC-insured accounts at any time.\n### Purchase a Life Insurance Policy\nA life insurance policy pays a lump-sum amount to your beneficiaries after you die. At least some of this money could be spent on your funeral.\n### Establish a Prepayment Plan\nUnder a prepayment plan, the funeral home deposits your money into an interest-bearing account or insurance policy. Following your death, the money goes directly to the funeral home. Generally, the Funeral Consumers Alliance recommends against prepaying for a funeral. In part, that's because your survivors may be unaware of the prepayment plan and thus unable to take advantage of it, and because some states lack strict laws governing these plans. END
 TITLE: How to Pay for a Funeral CONTENT: COVID-19 Funeral Assistance\n---------------------------\nIn some cases, you may qualify for federal aid to cover funeral expenses arising from a death related to COVID-19.\nIn April 2021, the Federal Emergency Management Agency (FEMA) started providing financial assistance for funeral expenses incurred after January 20, 2020, for the death of a loved one attributed to COVID-19. The money is aimed at covering expenses associated with funeral services, cremation and burial. FEMA restricts the assistance to $9,500 per funeral and $35,500 per application. To apply for financial assistance, call FEMA at 844-684-6333. END
 TITLE: How to Pay for a Funeral CONTENT: What Happens if You Can't Afford a Funeral?\n-------------------------------------------\nIf you can't afford a burial or cremation, don't despair. There may be a number of alternatives available to you. These include:\n*   **Veterans' benefits**: If a loved one was a U.S. military veteran, the federal government might pick up the tab for their gravesite, headstone, vault and interment at a national cemetery. Survivors would be responsible for the remaining expenses.\n*   **Help from an employer**: Some businesses offer survivor benefits to loved ones of deceased employees, as do some labor unions. These benefits could cover some or even all of the funeral expenses.\n*   **Government aid**: Some local or state agencies may chip in money to pay some of the funeral costs for an indigent person, or for somebody who received Medicaid, Social Security Disability or Supplemental Security Income benefits.\n*   **Victims' assistance**: Some states offer financial relief for survivors who are putting accident or homicide victims to rest.\n*   **Charitable contributions**: If you find yourself unable to come up with money for a loved one's funeral, consider approaching your church, a nonprofit or another local organization for help. You also might create a fundraising campaign on a crowdfunding platform like GoFundMe.\n*   **Donation of the body**: Donating a body to a local medical school will eliminate the cost of burial. END
 TITLE: How to Pay for a Funeral CONTENT: The Bottom Line\n---------------\nBurying or cremating a loved one can be costly, and difficult to consider when you are also dealing with the emotional toll of your loss. Looking into cost-effective options can help ease your financial burden. Setting aside savings or insurance for your own future funeral expenses can save your loved ones from some of the financial strain at a difficult time. END
 TITLE: When Should I Combine Finances With My Partner? CONTENT: Consider Your Relationship Stage\n--------------------------------\nPerhaps the most important element in the decision to combine finances is trust. If you'll be splitting bills with a partner, and relying on them to regularly come up with their share, it's important to feel confident that you won't be left covering the whole balance.\nEarly on, you may decide to split expenses like meals out and flights for vacation using tools such as Venmo and Splitwise. Once you move in together, you may be more likely to split larger, more regular bills, such as rent, groceries or potentially a car payment. Falling behind on housing or car payments can have serious consequences—for your housing security and credit score, for instance—so waiting to combine these parts of your financial lives is a smart choice.\nThat means it may be best to wait to combine finances, either partially or fully, until you've reached the stage at which you're in a trusted, long-term commitment. The timing for each couple will vary, but the first several months of dating are an opportunity to get to know your partner—and it's wise to wait to understand their income, savings, debt and money philosophy before combining finances. END
 TITLE: When Should I Combine Finances With My Partner? CONTENT: Set Aside Time for a Candid Money Conversation\n----------------------------------------------\nThe best way to build a full understanding of each other's readiness to combine finances is to have a frank conversation about your financial views and habits.\nWhen you think you're ready to make the leap to merged finances, plan to discuss these topics at a specific time when you won't feel rushed and you can bring your full attention and compassion to the conversation. Money can be a difficult topic for many, so take it slow and allow for multiple check-ins if necessary.\nHere are some important points for each partner to cover:\n*   What messages did you get from your parents about money as a kid? How have these affected your approach to money today?\n*   Do you save money regularly, or do you typically have no money left over at the end of each month?\n*   What is your annual income?\n*   What is your outstanding debt?\n*   What are your recurring expenses?\n*   Are you investing money for the future?\n*   What are your top financial goals?\n*   What is your current credit score?\nSome of these questions might seem awkward, but it's critical for both you and your partner to be open and forthcoming before you decide to pool your finances. If you're afraid you'll offend your partner by asking specific money-related questions, your relationship may not be ready for the next step financially. You should also discuss at what level you would like to combine finances now—whether you merely want to split shared expenses, or whether it's time to save in a joint account for shared goals. END
 TITLE: When Should I Combine Finances With My Partner? CONTENT: Explore Household Budgeting Options\n-----------------------------------\nNow it's time to consider the specifics. There are multiple ways to budget as a couple. The best route is the one you both feel comfortable with, and that allows for a fair split based on your earnings.\nSome options include splitting everything 50-50, where each partner contributes half the cost for all shared expenses each month, or a split in which each partner contributes an equal percentage of their income. That way, if one partner earns significantly more than the other, the lower-earning partner does not contribute more than they can afford.\nHow to cover expenses can be another tricky subject. You may decide to set up a joint checking account, where each partner will send a certain amount each month so you can pay for shared expenses from that account. Or one partner can schedule an automatic transfer for rent and utilities each month to the other partner, for instance, who then makes the payments. Yet another option is to keep a running tally of each partner's contributions to the household—cleaning products bought, furniture ordered and the like—and to settle up at the end of the month.\nIn general, it's practical to combine finances to the point at which you can both enjoy the convenience of knowing your bills will be comfortably covered. For items you truly share, such as rent, groceries, household utilities or gas, come up with a system that allows you to pay for them as a unit.\nBut for other expenses, such as personal care, clothes and technology, there's no rush to merge finances. Some couples keep these expenses separate even after marriage; others consider all household charges to be shared. But keep in mind that if you use a credit card, how to pay for shared debt should be part of your ongoing money conversation. END
 TITLE: When Should I Combine Finances With My Partner? CONTENT: Stay Open to Change\n-------------------\nAs your relationship grows and evolves, the types of expenses you share may change too. You may decide to add one of the partners to the other's credit card as an authorized user as a way to keep track of expenses and perhaps improve credit. That means you'll need to discuss how to pay for bills on that card.\nIf you have children, paying for child care and saving for college will mean adding new line items to the shared budget. It's also likely that one or both of you will change jobs, reduce or increase income, or take an extended break from working. Over the course of a relationship, you may readjust your budget and the finances you combine many times. Keeping the lines of communication open will be an important part of maintaining the health of both your partnership and your finances. END
 TITLE: What Is a Probate Sale? CONTENT: How a Probate Sale Works\n------------------------\nIt isn't out of the ordinary for a homeowner to die with debt in their name. If they had a will, there should be an executor who's been named to manage their estate accordingly. These duties can include distributing assets to beneficiaries, paying creditors or selling a home belonging to the deceased if a probate sale is in order. In cases where there is no will, the court will typically handle the sale itself or appoint an administrator of the estate to do so. Either way, a real estate agent may be brought in to show the property and help coordinate the sale.\nProbate properties are generally sold \"as is.\" In other words, buyers hoping to negotiate that certain home repairs be completed prior to purchase aren't likely to succeed. This kind of take-it-or-leave-it arrangement isn't a good fit for all buyers, but the upside is that you're more likely to land a sale price that's below market value. Just be aware that putting in an offer is often the first of many steps when buying a probate property. If the home is being sold by the executor of the estate, the court may still have to approve your bid before moving forward.\nYou also may need to come up with more cash upfront. You'll likely need a deposit of at least 10% ready to go in addition to your down payment, according to the National Association of Realtors, though these extra funds can be added to your down payment at closing. Things may be different if the property is being sold by the court, as opposed to a will's executor. In this case, the sale could be structured like an auction where the highest bidder must pay with cash or check. END
 TITLE: What Is a Probate Sale? CONTENT: What to Know Before Buying a Probate Sale Property\n--------------------------------------------------\nBuying a probate property comes with its own unique pros and cons. On top of the additional upfront funds that may be required, these kinds of sales could be inherently riskier than traditional home sales. Since the owner is no longer living, you won't be able to ask questions about the property or have them disclose any important issues with the home. This makes it that much more important to hire a qualified home inspector who can identify potentially costly problems.\nSince probate sales are known for being complex, you may also want to partner with a real estate attorney who has experience handling these types of transactions. They should be able to help you navigate the tricky legal terrain of the probate process, and advise you whether it makes sense to move forward. END
 TITLE: What Is a Probate Sale? CONTENT: How Long Does a Probate Sale Take?\n----------------------------------\nFrom start to finish, the process of buying a probate property can be quite lengthy due to the fact that the court is involved and there are so many interjecting parties. With a traditional home sale, things can move swiftly if there's a competitive offer and no major issues with the property. In April 2021, the National Association of Realtors reported that properties typically stayed on the market for just 17 days.\nA probate sale, on the other hand, can get drawn out by red tape like court approvals, objections from heirs or multiple bids. For these reasons, they may be better suited for buyers who have time to be patient. The timeline can vary, but it isn't uncommon for it to take six to 12 months to close the deal. END
 TITLE: Should You Go Into Debt for Your Wedding? CONTENT: How Will Your Wedding Impact Future Financial Goals?\n----------------------------------------------------\nCouples may need to work through what their combined financial goals are for the future and how paying for their wedding could affect those goals, especially if it involves taking on debt. For some couples, taking out a personal loan to pay for their wedding at a more manageable pace may be a better financial choice than totally draining all their savings and depleting their emergency fund.\nLeveraging credit cards as a way to earn cash back, points or miles for future travel could also be a strategy for some couples. However, the annual percentage rate (APR) on your credit card is likely much higher than what you could get with a loan, so you may want to consider paying for your expenses another way unless you can quickly pay off your balance. A card that has a 0% APR introductory period could be a viable option as long as you carefully manage your debt and pay it off before the card's higher ongoing APR kicks in.\nUltimately, you and your partner may decide that it's best to avoid taking on debt and plan a debt-free wedding. We've included some ideas with that in mind. END
 TITLE: Should You Go Into Debt for Your Wedding? CONTENT: How to Cut Your Wedding Expenses\n--------------------------------\nCouples have a ton of choices that can help lower the cost of their wedding day. Here are a few quick budget items that could be reconsidered:\n*   **Consider a venue change.** Instead of using a traditional wedding venue, rethink your wedding space. Some couples are now opting to do elopements, such as hiking with a tiny number of guests and an officiant to a spot on their favorite mountain. There are many ways to elope, so it might be time to start thinking creatively! Did you originally dream of a destination wedding? Instead, host your wedding at a venue that embodies an aspect of the destination you originally planned to visit. Don't be afraid to look online for wedding inspiration, or reach out to newlywed couples in your life for ideas and planning advice.\n*   **Resolve outside pressures.** Communicate your financial boundaries with friends and family who may be pressuring you to host a wedding that's beyond your means. Many couples underestimate how family expectations may influence what they decide to spend and the impact it has on their household budget as newlyweds.\n*   **Host a micro-wedding.** In fact, it shouldn't surprise you that 2020 saw a number of these beautiful weddings due to the impact of the COVID crisis and the need for smaller gatherings. Micro-weddings typically have a maximum of 50 guests but are often smaller. These weddings are ideal for couples who would like to keep their expenses low or would like to pay cash for their event.\n*   **Do it yourself.** Making your own table numbers, welcome signs and even flower arrangements can save you a lot of money over getting them through a vendor.\n*   **Communicate with your partner.** Have a conversation with your future spouse about the aspects of your wedding that you're both comfortable changing. Then discuss the non-negotiable parts of the wedding day experience that you deeply care about and would prefer not to downsize or economize.\n*   **Simplify everything.** Instead of giving all of your guests party favors, provide gifts just for the wedding party. Or skip the formal, mailed invitations and opt for an online version instead.\n*   **Skip certain wedding expenses.** Do your guests really need a beer mug commemorating your wedding day? Professional photographers are often worth the expense, but if you have a couple of friends who are great at photography, you might task them with taking your wedding pictures.\n*   **Shift the season.** Hold your wedding off-season, which will significantly cut down on your venue price and may give you more room to negotiate than during the wedding season.\nWhatever you decide to do, taking the time to think outside the box and be innovative with your planning can save you from having to go into debt for your big day.  \nHow to Prepare Financially for Your Wedding\n-------------------------------------------\nAfter spending some time fleshing out your wedding plans, sit down with your significant other and review your budget. Once you have a set budget in mind, open a dedicated bank account that will be used only for wedding related expenses and purchases. Your wedding budget will be an ongoing conversation until the final invoices for your special day have been paid.\nIf you're comfortable using your credit cards as a way to finance your expenses, consider speaking with your issuer for an explanation of the different rewards programs that they may have. Also, continuing to monitor the health of your credit is an integral step of this process.\nIf you'd like to avoid taking on debt, you and your future spouse may also consider increasing your income by working overtime or taking on side gigs and allocating that income towards your wedding budget. Wedding funds gifted to you by family members can also be placed in this account. Don't assume that your wedding guests will give you enough cash to fully cover the cost of your wedding day, however.  \nThe Bottom Line\n---------------\nIt's absolutely possible for your wedding day to be a memorable occasion without impacting your finances for years to come. Plan accordingly, be proactive and set financial boundaries that empower you to make the right decisions for your wallet. END
 TITLE: Should You Go Into Debt for Your Wedding? CONTENT: How to Prepare Financially for Your Wedding\n-------------------------------------------\nAfter spending some time fleshing out your wedding plans, sit down with your significant other and review your budget. Once you have a set budget in mind, open a dedicated bank account that will be used only for wedding related expenses and purchases. Your wedding budget will be an ongoing conversation until the final invoices for your special day have been paid.\nIf you're comfortable using your credit cards as a way to finance your expenses, consider speaking with your issuer for an explanation of the different rewards programs that they may have. Also, continuing to monitor the health of your credit is an integral step of this process.\nIf you'd like to avoid taking on debt, you and your future spouse may also consider increasing your income by working overtime or taking on side gigs and allocating that income towards your wedding budget. Wedding funds gifted to you by family members can also be placed in this account. Don't assume that your wedding guests will give you enough cash to fully cover the cost of your wedding day, however. END
 TITLE: How to Financially Prepare for Children CONTENT: Know the Costs of Pregnancy or Adoption\n---------------------------------------\nEven before you budget for raising a child, consider the expenses of bringing that new life into your world.\nThe costs of traditional pregnancy may surprise you: Prenatal care and pregnancy expenses can add up quickly, and the birth itself can cost an average of $4,600 out of pocket, even with employer-sponsored insurance.\n**Price range for pregnancy**: Between $9,000 and $250,000. If you utilize in vitro fertilization (IVF) or other fertility treatments for your pregnancy goals, you can assume an additional $8,000 to $30,000\nIf you plan to adopt your new family member, you may be responsible for the pregnancy costs along with additional, adoption-specific fees, like home inspections. Private adoption agencies in the U.S. can be pricey, and international adoption rates can be similarly expensive. On the other hand, an independent adoption or adopting from foster care could cost significantly less.\n**Price range for adopting**: $0 to $50,000\nAdoption may be part of your price tag, even when working with a surrogate. Depending on your state, parents may have to adopt from their surrogate; non-biological partners in same-sex unions may also need to adopt to establish official parentage in the eyes of the law. For surrogacy, factor potential adoption and attorney costs into your budget, as well as fertility medications, IVF and medical expenses for carrying and delivering. Your lawyer will create a contract covering the surrogate's compensation, including how you'll provide for any complications.\n**Price range for surrogacy**: $100,000 to $300,000 END
 TITLE: How to Financially Prepare for Children CONTENT: Understand What Your Health Insurance Does and Doesn't Cover\n------------------------------------------------------------\nNo matter how you start your family, you need to review your health insurance early and thoroughly to understand what it covers—and what will have to come straight out of your pocket. Here's what to look for:\n*   **Your deductible**: You must spend your deductible before maternity care coverage kicks in.\n*   **Expected coverage**: Check what coverage your plan offers for prenatal vitamins, lab tests and the birth itself.\n*   **Unexpected coverage**: About 8% of pregnancies don't go exactly as planned. Be sure you review how your provider handles expenses like NICU visits and potential visits to out-of-network doctors.\n*   **Partner's plan**: Your partner's plan may have benefits better suited for your family's needs, especially for when you add your new dependent to your insurance. There may even be additional perks, like college tuition benefits, included in your plans.\n*   **Surrogacy, adoption and IVF coverage**: Certain insurance plans extend to surrogacy or fertility treatments, though the coverage may be limited.\n*   **Flexible spending accounts or health savings accounts (FSAs and HSAs)**: An FSA or HSA can help you put money toward health care while reducing your taxable income. Make sure you check the details and maximize these options if your employer offers them.\n*   **Critical illness insurance**: Some diagnoses could incur high added costs; you may want to secure accident or critical injury insurance in advance to help you cover the unexpected.\n*   **Exclusion period**: Some plans won't cover maternity costs until you've been with your provider for a certain period.\nReview Your Maternity and Paternity Leave\n-----------------------------------------\nDepending on your employer, length of employment and other factors, you and your partner may be eligible for leave from work according to federal and state provisions. However, there's a good chance it won't be _paid_ time off.\nBe sure to review your maternity or paternity leave coverage with your employer and state well in advance. Then, strategize how much time you intend to take off work, depending on your family and budget.\nKeep in mind that the time you need to spend away from work for a new child can be unpredictable. Pregnancy complications like extended bedrest can disrupt even the best-laid plans. It may be a good idea to save up paid time off, like sick days and vacation time, to cover any unintended interruptions to your or your partner's paycheck. You can also consider short-term disability insurance, either independently or from your employer, to help cover potential rough patches.  \nAdjust Your Budget to Include a Child\n-------------------------------------\nThe earlier you start to budget for a new family member, the better. But how do you effectively approach a budget? There are several budget strategies, like zero-based budgeting and the 50\/30\/20 rule. Try out different techniques and stick to the one that works best for you. You should track all your expenses, from monthly bills to miscellaneous money habits, and start making room to include a child:\n*   **Pay down debt.** Birth and child-rearing are expensive enough; make it a priority to ditch any debts you have (particularly high-interest debts).\n*   **Pad your emergency fund.** The golden rule is to have enough set aside to cover three to six months of living expenses. Consider keeping your savings somewhere safe and add to your stash over time with automatic deposits from your checking account.\n*   **Cut down on expenses.** If you can switch your gym membership to free home workouts or pack a lunch instead of eating out, now's the time. Every dollar you put away or put toward your financial goals will help you prepare for the financial needs of having children. You can even enhance your saving superpowers with a side gig (bonus points if you can keep up your side hustle from home after the baby arrives).\nHow Much Money Should You Have Saved for Children?\n--------------------------------------------------\nNow that you know how to get a budget going, it's time to put everything together and figure out how much you'll need to be genuinely financially prepared. On average, raising a child costs almost $13,000 each year.\nYour exact expenditures will depend on choices like school, childcare and lifestyle. When you crunch the numbers for your budget, try to look ahead to such costs so you can feel confident about your long- and short-term financial plans.\nThink about the money you need for pregnancy, adoption or surrogacy, and then determine other important costs for after the baby arrives. You can start putting aside college savings for your child with tax-advantaged 529 plans or programs like Upromise, which boosts your spending with rewards for your child's college fund.\nIn the process, don't forget about contributing to your retirement savings regularly. Even if you have to reduce your contributions temporarily, setting as much aside as possible now means your child won't have to shoulder the cost of caring for you later.\nIf you need to take on debt to bring your child into your world, aim to take on the right kind of debt. Keep your credit in tip-top shape to help you qualify for the best loan rates if you end up needing to borrow money—or, if your credit isn't currently ideal, take steps to improve it now. For fertility treatments, LGBTQ couples and surrogacy, check out possible grants to help with the costs; there may be financial aid for adoption available to you, too.  \nThe Bottom Line\n---------------\nNo matter how a child arrives in your family, you'll have financial responsibility for them for many years to come. It can feel a little overwhelming, but the right preparation can help keep you on track financially throughout your child's life. END
 TITLE: How to Financially Prepare for Children CONTENT: Review Your Maternity and Paternity Leave\n-----------------------------------------\nDepending on your employer, length of employment and other factors, you and your partner may be eligible for leave from work according to federal and state provisions. However, there's a good chance it won't be _paid_ time off.\nBe sure to review your maternity or paternity leave coverage with your employer and state well in advance. Then, strategize how much time you intend to take off work, depending on your family and budget.\nKeep in mind that the time you need to spend away from work for a new child can be unpredictable. Pregnancy complications like extended bedrest can disrupt even the best-laid plans. It may be a good idea to save up paid time off, like sick days and vacation time, to cover any unintended interruptions to your or your partner's paycheck. You can also consider short-term disability insurance, either independently or from your employer, to help cover potential rough patches. END
 TITLE: How to Financially Prepare for Children CONTENT: Adjust Your Budget to Include a Child\n-------------------------------------\nThe earlier you start to budget for a new family member, the better. But how do you effectively approach a budget? There are several budget strategies, like zero-based budgeting and the 50\/30\/20 rule. Try out different techniques and stick to the one that works best for you. You should track all your expenses, from monthly bills to miscellaneous money habits, and start making room to include a child:\n*   **Pay down debt.** Birth and child-rearing are expensive enough; make it a priority to ditch any debts you have (particularly high-interest debts).\n*   **Pad your emergency fund.** The golden rule is to have enough set aside to cover three to six months of living expenses. Consider keeping your savings somewhere safe and add to your stash over time with automatic deposits from your checking account.\n*   **Cut down on expenses.** If you can switch your gym membership to free home workouts or pack a lunch instead of eating out, now's the time. Every dollar you put away or put toward your financial goals will help you prepare for the financial needs of having children. You can even enhance your saving superpowers with a side gig (bonus points if you can keep up your side hustle from home after the baby arrives). END
 TITLE: How to Financially Prepare for Children CONTENT: How Much Money Should You Have Saved for Children?\n--------------------------------------------------\nNow that you know how to get a budget going, it's time to put everything together and figure out how much you'll need to be genuinely financially prepared. On average, raising a child costs almost $13,000 each year.\nYour exact expenditures will depend on choices like school, childcare and lifestyle. When you crunch the numbers for your budget, try to look ahead to such costs so you can feel confident about your long- and short-term financial plans.\nThink about the money you need for pregnancy, adoption or surrogacy, and then determine other important costs for after the baby arrives. You can start putting aside college savings for your child with tax-advantaged 529 plans or programs like Upromise, which boosts your spending with rewards for your child's college fund.\nIn the process, don't forget about contributing to your retirement savings regularly. Even if you have to reduce your contributions temporarily, setting as much aside as possible now means your child won't have to shoulder the cost of caring for you later.\nIf you need to take on debt to bring your child into your world, aim to take on the right kind of debt. Keep your credit in tip-top shape to help you qualify for the best loan rates if you end up needing to borrow money—or, if your credit isn't currently ideal, take steps to improve it now. For fertility treatments, LGBTQ couples and surrogacy, check out possible grants to help with the costs; there may be financial aid for adoption available to you, too. END
 TITLE: 8 Common Threats to Kids on Social Media CONTENT: ### 1\\. Predators Targeting Children\nIn 2020, reports of online child predator incidents spiked more than 97%, according to the National Center for Missing & Exploited Children. And, according to the FBI, each offender may sexually extort dozens—sometimes hundreds—of young victims.\nIt can start with a casual friend request or message. Predators manipulate kids with assurances and supposedly shared interests. They later play on their natural curiosity and pivot into sexual territory. Eventually, through this \"grooming,\" they gain trust and exploit their victims. Make sure your kids feel comfortable telling you if an online stranger contacts them. Tell them what to do if they encounter a threat, and you should report it immediately to keep your child—and others—safe. END
 TITLE: 8 Common Threats to Kids on Social Media CONTENT: ### 2\\. Identity Theft Schemes and Scams\nScammers and fraudsters also lurk on social media, and a simple friend request or follow request can be all they need to connect with your kids. Most adults have enough experience with scammers, robocalls and phishing emails to know not to dole out their Social Security numbers or click suspicious links. However, thousands of minors encounter scams like identity theft annually, often stemming from social media. You can check up on your child's security with a credit report check for a minor to confirm their information is not compromised and teach them the importance of keeping their personal information private. END
 TITLE: 8 Common Threats to Kids on Social Media CONTENT: ### 3\\. Inappropriate Content\nViolence, racism, drugs and sex can all find their way into unprotected social media feeds. How bad can it be? Well, Facebook and YouTube moderators (who sift through flagged content) sign forms acknowledging their risk of post-traumatic stress disorder from work. Fine-tune the parental controls on each app and consider monitoring measures like Bark or [Securly](;utm_source=Securly_Brand_search_2021&utm_medium=cpc&utm_campaign=Securly_Brand_search_2021). If dangerous content slips through, be ready to discuss what they've seen. The last thing you want to do is punish them for coming to you for help if online content distresses them. END
 TITLE: 8 Common Threats to Kids on Social Media CONTENT: ### 4\\. Sharing Posts and Images Kids Will Regret Later\nKids may not realize the long-term consequences of what they choose to put online. After all, it's often as simple as applying a filter and pressing the \"post\" icon. Sharing personal information can be bad enough, as it can open the door to scammers and predators, but children can underestimate the reach of their choices on social media. Explain to them that even though they have the option to delete what they post, anything put online should be considered permanent. Their posts can easily be screenshotted or otherwise downloaded and shared publicly by someone else, whether or not they want it to be. Their posts can follow them for a long time and potentially compromise future education or career opportunities. Keep up on their privacy settings and monitor what they share online. END
 TITLE: 8 Common Threats to Kids on Social Media CONTENT: ### 5\\. Misinformation\nFake profiles and bots spread everything from fake political info to bogus health science, and your kids could see blatant lies disguised as facts daily. Make sure you check out what info gets funneled into your children's newsfeeds and discuss it. You can let them in on how to fact-check and locate reliable sources of information. A conversation on this topic can be started as easily as asking \"Where did you hear about that?\" the next time your child brings up something that sounds outlandish. END
 TITLE: 8 Common Threats to Kids on Social Media CONTENT: ### 6\\. Cyberbullying\nCyberbullies use their online influence to bring down their peers. According to a Pew Research study, nearly 60% of teenagers have encountered bullying or harassment online. These days, kids create school-specific gossip profiles, carelessly send cruel messages and post damaging materials about each other. The nature of social media can cause children to act out, but you can teach them how to control their behavior and counteract cyberbullying. Help them to feel safe coming to you with concerns so you can help them report cyberbullies right away. END
 TITLE: 8 Common Threats to Kids on Social Media CONTENT: ### 7\\. Social Media Addiction\nSocial media is fundamentally curated to keep kids scrolling. Expert psychologists tailor social sites with _persuasive design_, a psychological formula that trains social networkers to stay plugged in. By exploiting children's social tendencies, platforms can hook users from a young age and keep them firmly reeled in. From there, it can build to something resembling an addiction that can affect decision-making and, when removed, even trigger withdrawal. Your best option here is often to limit time online. You'll lessen the instant gratification they get from the sites, but their dependency on them will diminish as well. END
 TITLE: 8 Common Threats to Kids on Social Media CONTENT: ### 8\\. Exposure to Targeted Ads and Marketing\nMore time stuck on the app means more time exposed to advertising that targets users with highly personalized marketing. Young kids have a harder time distinguishing advertisements from entertainment, which makes them more susceptible to laser-focused advertising efforts. If this makes you uncomfortable, there's bad news: You cannot fully prevent your children from being exposed to this kind of advertising on social media. You may not even know it's happening to you or your children. You can lessen exposure by customizing ad preferences, turning on privacy options and downloading opt-out add-ons. END
 TITLE: 7 Ways to Save Money on Your Wedding Dress CONTENT: Wear a Family Heirloom\n----------------------\nWearing a dress that belonged to your mom or grandmother carries true sentimental value. It will also save you on the cost of a gown. But choosing to wear a vintage dress isn't necessarily free. Depending on the age and condition of the dress, restoring and altering it can cost a few hundred dollars or more. If you're interested in this option, look for a wedding dress restoration specialist who can help you evaluate the dress's condition and what might be needed to wear it safely on your special day. END
 TITLE: 7 Ways to Save Money on Your Wedding Dress CONTENT: Shop for a Vintage or Previously Worn Dress\n-------------------------------------------\nIf a family heirloom isn't an option, you can also buy a vintage dress—or check out pre-owned options on sites like Nearly Newlywed or Stillwhite. Pre-owned marketplaces are especially useful if you have your heart set on an expensive gown: Many are available at 50% off or more. Bonus tip: You can also sell your dress on these sites after the wedding to recoup some of your cash. END
 TITLE: 7 Ways to Save Money on Your Wedding Dress CONTENT: Consider a Micro Wedding Dress\n------------------------------\nA micro wedding dress is, thankfully, not a teeny-tiny wedding dress. Rather, micro dresses are simpler and less expensive than most traditional gowns.These dresses gained popularity during the pandemic, when weddings themselves underwent a bit of downsizing. It only makes sense: If you've chosen an informal or outdoor venue, a dress made from acres of watered silk and 18,000 Swarovski crystals might not be the right vibe, regardless of budget.\nA micro dress could save you some serious cash. For example, dresses in the micro dress collection from David's Bridals range from $139 to $749. But the styles are unmistakably bridal, and one may strike just the right chord—especially if your wedding will be intimate in scale. END
 TITLE: 7 Ways to Save Money on Your Wedding Dress CONTENT: Think Outside the Bridal Shop\n-----------------------------\nSelf-described micro dresses aren't the only option, either. While visiting a traditional bridal salon to try on dresses is a rite of passage for many brides, online sources for wedding gowns abound. The range is considerable, from Anthropologie's BHLDN to bridal boutique Azazie, and even sites like ModCloth, Etsy or Amazon. END
 TITLE: 7 Ways to Save Money on Your Wedding Dress CONTENT: Rent a Dress\n------------\nAlthough it might not be for the sentimental, renting a wedding dress could be your ticket to wearing an expensive dress for a fraction of the purchase price. Sites like Wedding Dress for Rent and Rent the Runway offer a range of fashionable dresses. According to Brides.com, some bridal boutiques may also consider renting you a dress. Ask around to see if local shops are open to this arrangement. END
 TITLE: 7 Ways to Save Money on Your Wedding Dress CONTENT: Shop Sample Sales\n-----------------\nSample dresses can be marked down by 50% or more, but you may have to work to snag one. Check with your favorite designer or local bridal boutique to find out when and where they sell samples—typically once or twice a year. Alternatively, The Glamour Closet has samples for sale year-round, with showrooms open in New York, San Francisco, Los Angeles and Chicago.\nPro tip: Industry insiders say January is the best month to shop for a wedding dress because that's when designers introduce their new lines. This also means that shops put the styles they're retiring on sale. END
 TITLE: 7 Ways to Save Money on Your Wedding Dress CONTENT: Budget for Accessories and Alterations\n--------------------------------------\nYour dress isn't the only cost to consider. You'll need undergarments, shoes, jewelry and a veil or headpiece if you choose to wear one. Each of these items can increase costs significantly, so shop around for the best value. Also be mindful of alterations, which can easily run into the hundreds of dollars. Choosing a dress with fewer intricate details can help keep alteration costs down. Also consider a corset style, which offers a bit of adjustability without a formal alteration. END
 TITLE: 7 Ways to Save Money on Your Wedding Dress CONTENT: How to Pay for Your Wedding Dress\n---------------------------------\nUnless mom and dad did you the favor of setting up a trust fund for just this purpose, consider these options for paying the bill:\n*   **Save up.** Even if you only save part of your total cost, it helps. You'll rack up less debt and reduce the amount of interest you'll pay. Bonus: You can charge the entire purchase to maximize rewards, then pay it off as quickly as possible to minimize interest. Need a little help saving the money? Consider a money-saving app or use the automatic savings features in your banking app.\n*   **Use credit cards wisely.** Using a credit card to pay for your wedding dress can be a smart move, whether you need the financing or not. Since your dress is likely to be a large purchase, the rewards you earn can be significant. If you've been thinking about applying for a new rewards card, a wedding dress can make a great inaugural purchase. And if your credit is good, you may be able to take advantage of introductory 0% APR offers—from your current card issuer or with a new 0% APR card. Just be sure to pay all or as much as possible off as soon as your budget allows.\n*   **Consider a personal loan.** Financing a wedding is a big undertaking. If you've decided to borrow to cover expenses, a personal loan that can help cover your wedding dress and other expenses might be worth considering. Personal loans often charge lower interest rates than credit cards do, and they give you a limited timeframe in which to pay your loan back, so you don't end up with revolving wedding debt that goes on indefinitely. That said, saving up as much as possible so you can avoid going into debt to pay for wedding expenses is your most savvy financial move. END
 TITLE: 7 Ways to Save Money on Your Wedding Dress CONTENT: Carry On in Style\n-----------------\nWith some creative sourcing and smart shopping, it's possible to find a great dress that won't break your budget. If you also cultivate good credit, you'll have a variety of ways to pay for it as well—and that leaves room for the many other expenses that go into a magical day. Best wishes! END
 TITLE: Can Businesses Run My Credit Without My Permission? CONTENT: How Businesses Check Your Credit\n--------------------------------\nBusinesses can check your credit by requesting a copy of your credit report from one of the major credit bureaus: Experian, TransUnion or Equifax. When this happens, a record of the credit check is added to your credit report and remains there for two years.\nWhen the credit inquiry is the result of you applying for credit and giving a business permission to check your report, a hard inquiry is recorded on your credit report. Hard inquiries stay on credit reports for about two years and may have a small, negative impact on your credit scores. Other businesses will also be able to see these hard inquiries when they check your credit.\nWhen a company checks your credit report to make a promotional offer or when your lender conducts periodic reviews of your existing credit accounts, it is called a soft inquiry. Soft inquiries also occur when you check your own credit report or when you use credit monitoring services from companies like Experian. These inquiries do not impact your credit score. END
 TITLE: Can Businesses Run My Credit Without My Permission? CONTENT: When Businesses Can Check Your Credit Without Permission\n--------------------------------------------------------\nThe Fair Credit Reporting Act (FCRA) is a federal law that governs what's allowed in your credit report and who can request a copy of your credit report. To get a copy of your credit report, a business needs to have a \"permissible purpose\" as defined by the FCRA.\nIf you apply for a loan, credit card or insurance, you may have to give the company permission to check your credit report as part of submitting the application. Some employers may also ask you for permission to check your credit as part of the interview process.\nThe FCRA gives some people and organizations the right to check your credit without your permission in certain circumstances:\n*   When responding to a court order or federal grand jury subpoena.\n*   To review an account you already opened with the business (although you may have given the business this permission when you first applied).\n*   If you applied for a license or other government benefit and there's a law that requires the organization to consider your financial responsibility or status.\n*   When an agency needs to use your credit report to determine or modify a child support award.\n*   When sending prescreened firm offers of credit for a new credit account or insurance policy.\nThe person or organization requesting your credit report has to tell the credit bureau what permissible purpose allows them to request your credit report. And they can only use your credit report for that purpose. END
 TITLE: Can Businesses Run My Credit Without My Permission? CONTENT: What to Do if You Don't Recognize a Hard Inquiry\n------------------------------------------------\nYou might see soft inquiries when you check your own credit report, and won't necessarily recognize the names of the companies. Generally, that's not cause for concern. However, if you check your credit report and notice a hard inquiry (it may be in a different section of your report) from a company you don't recognize, that could be a problem.\nSometimes companies operate under several names, and it might be a legitimate hard inquiry from a recent credit application you submitted. Otherwise, the hard inquiry might be an indication that someone else tried to apply for credit using your information.\nWhen the latter is the case, you can submit a dispute to the credit bureau and ask it to remove the hard inquiry. You should also reach out to the company that pulled your credit and make sure an account wasn't opened without your permission. (Here are five steps you can take if an account was opened.)\nAlthough dealing with identity theft and fraud can be difficult, removing a hard inquiry that's the result of fraud can be a fairly straightforward process. But remember, you can't remove hard inquiries that come from your applications for credit—you have to wait until they fall off your credit report. END
 TITLE: Can Businesses Run My Credit Without My Permission? CONTENT: Get Your Free Credit Report\n---------------------------\nYou should periodically review your credit reports for hard inquiries and new accounts to make sure no one has opened an account in your name. You can get a free credit report from each of the bureaus once a year at AnnualCreditReport.com. Experian also offers free access to your Experian credit report online. Once you create an account, you can get an updated credit report once every 30 days, receive free credit monitoring (with notifications if there are major changes) and send a dispute from your online account for free. END
 TITLE: Can Someone Find Out If You’re Unemployed From a Credit Report? CONTENT: Does Being on Unemployment Show Up on Your Credit Report?\n---------------------------------------------------------\nWhile your credit reports may list past and present employer information, they do not state whether or not you are currently employed. Employer names may be listed because lenders sometimes ask for your employment information on credit applications, and they report that information to the credit bureaus (along with other identifying information). The reported employers may then be listed as part of your personal identification information. But any record of you receiving unemployment benefits will never be found listed in a credit report.\nGenerally, credit reports contain information from financial institutions that show your past interactions with credit. This includes records of loans you've applied for, your payment history (including late or missed payments), your current debt balances and credit limits, as well as any public records related to your finances such as bankruptcies or foreclosures. END
 TITLE: Can Someone Find Out If You’re Unemployed From a Credit Report? CONTENT: Does Receiving Unemployment Benefits Affect Your Credit Score?\n--------------------------------------------------------------\nEven though the name of a past or current employer may show in your reports, employment status and history have no impact on your credit scores. The scoring algorithms used to calculate your score do not include your job history as a factor and do not look at whether you are currently employed.\nThough credit reports are not directly impacted by employment, being unemployed can make it difficult to get a loan. When you apply for new credit, creditors will want to know your employment status and income to make sure you can afford to pay back the debt. They won't find this information in your credit reports, but you may be asked to self-report it on your application.\nWhether you've applied for or received unemployment benefits is not a public record, is not listed anywhere in your credit reports and won't have any impact on your credit scores. The general public (including prospective employers) cannot find out if you are receiving unemployment benefits or have in the past. END
 TITLE: Can Someone Find Out If You’re Unemployed From a Credit Report? CONTENT: Does Being Unemployed Prevent You From Applying for Credit?\n-----------------------------------------------------------\nUnemployment itself does not prevent you from applying for new credit. Creditors generally prefer borrowers who have a job and steady income so they can be confident any debt will be paid back, but there is no rule that unemployed people cannot apply for loans.\nCreditors have a legal responsibility to verify you have the ability to repay a loan, however. For that reason they will likely ask about your employment status, and verify your sources of income and other assets. If you are unemployed, you may be declined unless you have other substantial assets or resources to repay the debt. END
 TITLE: Can Someone Find Out If You’re Unemployed From a Credit Report? CONTENT: How to Manage Debt When Unemployed\n----------------------------------\nLosing your job can be emotionally draining—especially if it happens abruptly. But unfortunately, while unemployment may put your life on hold, it doesn't place your debt on hold. With just a few exceptions—including federal student loans, which offer payment plans based on income, and measures taken during special circumstances such as the COVID-19 crisis (more on that below)—creditors will still expect you to keep making your debt payments.\nMissed payments can have a lasting, yet temporary, impact on your credit score. And while the thought of paying bills when you have no income can be daunting, staying on top of your debt will help you in the long run. If you do miss payments, know that there are steps you can take in the future to get back on track rebuilding your credit.\nIf you're trying to navigate repayment while unemployed, here are a few tips that can help:\n*   **Make at least your minimum payments.** Making your minimum payments will keep your accounts current and prevent any late or missed payments from showing up your credit history. Paying a bill late, or not at all, can severely damage your scores. Paying the minimum on your account might cost you more in interest over time, but it's a small price to pay to protect your scores for the long run.\n*   **Explore all resources available.** If you're unemployed, you may be eligible for programs in addition to unemployment benefits. Beyond what you can collect from your state through unemployment, other government resources through your city, county or the federal government may be available.\n    As a result of the COVID-19 pandemic, unemployment benefits have been expanded to those who otherwise would not have been eligible to receive benefits. If you've lost your job due to COVID-19 and think you may qualify, contact your state's department of labor as soon as possible to see if you're eligible to receive benefits.\n*   **Contact your creditors.** While not all creditors will adjust your repayment plan if you lose your job, some might be willing to work with you to help you avoid getting behind on payments. Many lenders have systems in place, such as forbearance or deferment, for those facing financial hardships.\n    If you've been impacted by COVID-19, there may be special resources available to help you through this difficult time. To help consumers navigate this, Experian has created a resource list of financial, non-financial and government institutions offering relief to people impacted by COVID-19.\nAs always, if you are worried about your credit, make sure to monitor it often so you're aware of any changes that take place. You can check out Experian's free credit monitoring service to stay on top of your reports and scores. END
 TITLE: Which Debts Should I Pay Off First to Improve My Credit? CONTENT: Start By Paying Off Credit Card Debt\n------------------------------------\nYour current balances on various types of debt accounts impact your credit differently. To start, it's important to understand how credit scoring models distinguish between the two broad types of credit: Installment accounts and revolving credit accounts.\n*   Installment accounts typically have a fixed loan amount and repayment schedule. Mortgage, student, auto and personal loans are common examples.\n*   Revolving accounts, such as a credit card or personal line of credit, have a credit limit that you can repeatedly borrow against.\nThe balances on either type of account play a role in your credit, but your revolving credit accounts factor more heavily into your credit scores. That's because they impact your credit utilization ratio, which is a major scoring factor in both the FICO® and VantageScore® scoring models. The remaining balances on your installment loans also impact your credit, but paying down those balances may not move your scores as much.\nTo calculate your credit utilization ratio, you'll compare your revolving account balances and limits. For example, if you have two credit cards with $5,000 credit limits ($10,000 total) and a combined balance of $2,500, your credit utilization ratio is 25%.\nYour overall credit utilization and your credit utilization on individual revolving accounts both can impact your credit scores. In either case, a lower credit utilization rate is better. As you pay down your accounts, keep in mind that the balances and limits used in score calculations come from your credit report. Your creditors report account information to the credit bureaus every 30 days or so, which may cause the information in your credit report to differ from the amounts you see when logged in to your credit card account. END
 TITLE: Which Debts Should I Pay Off First to Improve My Credit? CONTENT: Decide Which Credit Cards to Pay Off First\n------------------------------------------\nIf your goal is to lower your overall credit utilization rate, any additional credit card payments you make could help. However, other factors can also impact which card you want to pay down first:\n*   Paying down the card with the highest interest rate first could help you save money.\n*   Paying down the card with the highest utilization ratio could help your credit scores, as the individual account utilization is considered by credit scoring models.\n*   Paying down the card with the lowest balance could help you decrease how many of your accounts have a balance, which may also improve your credit scores.\nConsider your goals and then choose an account to start with—while still making at least the minimum payment on the rest of your credit cards. END
 TITLE: Which Debts Should I Pay Off First to Improve My Credit? CONTENT: How to Pay Off Credit Debt\n--------------------------\nYou could pay off your credit card debt by paying down one card at a time (and making minimum payments on the other cards). Once the first is paid off, you take the freed-up funds and focus on the next card on your list.\nTwo ways you can create your debt payoff plan using this approach is to utilize the debt avalanche or debt snowball method. The debt avalanche method has you start with the highest-rate accounts first, which can help you save money. Alternatively, the debt snowball method focuses your efforts on the account with the lowest balance first. This strategy may be more motivating and easier to follow through with because it could allow you to pay off individual debts more quickly.\nThere are, however, additional strategies that might help you save money, improve your credit or get out of debt:\n*   **Balance transfer credit cards**: Balance transfer cards often offer a promotional 0% intro APR (annual percentage rate) on debt you transfer to the card. You can then pay down the balance without accruing additional interest during the promotional period. Many balance transfer cards charge a balance transfer fee, and it's common for this fee to be 3% or 5% of the transferred amount.\n*   **Debt consolidation loans**: You might be able to take out a personal loan and use the funds to pay off one or more of your credit cards. This strategy could lead to savings if you can qualify for a loan that has a lower interest rate than your cards do. Plus, moving the debt from a revolving credit card account to an installment loan will lower your credit utilization rate.\n*   **Debt management plans**: If you can't seem to get a handle on your credit card debt, a credit counselor may be able to help you get set up with a debt management plan (DMP). A DMP can help lower your payments and set you on a path to paying off the debt, but it also often involves closing your credit cards. END
 TITLE: Which Debts Should I Pay Off First to Improve My Credit? CONTENT: Don't Forget About Installment Account Debt\n-------------------------------------------\nWhile paying down credit card debt could lead to a larger credit score increase than paying down an installment loan, you don't want to neglect your installment accounts. Missing loan payments could lead to fees, and late payments can hurt your credit scores.\nYou may also want to use a single payoff strategy, such as the debt avalanche or debt snowball method, for all your credit cards and installment accounts. Even if it means focusing on a high-rate loan before a credit card, the extra savings could be worth taking a less credit-score-focused approach. This will depend on your situation and whether you hope to take out a loan in the near future. Paying down credit card debt tends to have a more immediate positive impact on your credit scores. END
 TITLE: Can I Raise My Credit Score by 100 Points? CONTENT: How Long Does It Take to Improve Your Credit Score?\n---------------------------------------------------\nThere's no set amount of time for how long it will take to improve your credit score by a certain number of points. There are several factors that go into calculating your credit score—some more influential than others. What you can do to improve these factors will depend on what's in your unique credit history.\nImproving your score is a feat that will take time and require patience and discipline. The sooner you start the process, though, the earlier you'll achieve your goal.\nIf your credit score is low, there are a couple major factors that may influence how long it takes to build your score:\n*   **You're new to credit.** When you're just starting out building credit, it'll take at least six months of using credit to meet the criteria to receive a FICO® Score☉ . As long as you start out on a positive note, developing good credit habits will help you build your credit history and score in the coming months and years.\n*   **You have negative information on your reports.** If you've experienced bankruptcy, foreclosure, repossession or another significant negative credit event, it can take more work to improve your credit score. Establishing positive credit relationships going forward can eventually outweigh the negative, but those items will remain on your credit reports for up to seven or more years, so it may take more time. END
 TITLE: Can I Raise My Credit Score by 100 Points? CONTENT: What Factors Affect Your Credit Score?\n--------------------------------------\nThere are five major factors that affect your FICO® Score. And even though some have more influence on your score than others, it's important to take a holistic approach in your efforts to build credit.\n*   **Payment history**: On-time payments are crucial to building and maintaining good credit. If you have late payments on your credit reports, get caught up as soon as possible. Also, make it a goal to pay your bills on time and in full every month. If you worry you'll miss a payment, contact your creditor as soon as possible to understand your options, and to talk about possible accommodations so your credit isn't affected.\n*   **Amounts owed**: The total amount you owe in debt is important, and shows lenders that you've made progress on your existing accounts. This factor also focuses on your credit utilization rate, which measures the percentage of your available credit on credit cards that you're using. The lower your balance is relative to your credit limit, the better your utilization rate will be for your credit score.\n*   **Length of credit history**: The longer you've been using credit, the more data lenders have to ascertain how well you manage your credit accounts. Your FICO® Score calculation also includes the average age of your accounts, so frequently opening new accounts can have a negative impact on your score.\n*   **New credit**: Virtually every time you apply for credit, the lender will run a credit check to gauge your creditworthiness. This will result in a hard inquiry on your credit report, which can knock a few points off your score temporarily. If you apply for multiple accounts in a short period—except for in situations where you're shopping around for a loan—it can have a compounding negative impact on your score.\n*   **Credit mix**: In general, being able to manage multiple types of credit, such as credit cards, auto loans, mortgages and student loans, can have a positive impact on your credit score. However, it's not wise to open several new credit accounts solely to improve your credit mix. Diversifying your credit mix often occurs naturally over time. END
 TITLE: Can I Raise My Credit Score by 100 Points? CONTENT: How to Improve Your Credit Score\n--------------------------------\nThe steps required to improve credit can vary from person to person. While some may apply to you, others may not. However, here are some general guidelines that can help you increase your credit score:\n*   Pay all bills on time.\n*   Get caught up on past-due payments, including charge-offs and collection accounts.\n*   Pay down credit card balances and keep them low relative to their credit limits.\n*   Apply for credit only when necessary.\n*   Avoid closing older, unused credit cards.\n*   Review your credit reports for inaccuracies and dispute them with the credit bureaus.\n*   Ask a family member with good credit to add you as an authorized user on their credit card account.\nAgain, it's difficult to determine exactly how much your credit score will improve with each of these steps, but as you develop these good credit habits, you'll see positive results over time. Also, plan to monitor your credit score regularly to understand how your actions impact your score and to spot potential issues that could threaten your progress. END
 TITLE: Can I Raise My Credit Score by 100 Points? CONTENT: Use Experian Boost to Help Increase Your FICO® Score\n----------------------------------------------------\nOne way to potentially increase your credit scores quickly is through Experian Boost. This service allows you to get credit for on-time utility, phone and streaming payments that otherwise would not be included on your credit report. Simply connect your financial accounts that you use to pay your bills, and Experian will identify qualifying payments and add.\nYou'll then confirm which payments you want to add to your Experian credit report, and your FICO® Score will be updated immediately. Among those who have seen their score climb, the average increase has been 13 points. END
 TITLE: Does Income Affect Credit Scores? CONTENT: What Can Affect Your Credit Score?\n----------------------------------\nWhen working toward building up your credit score, of course it's more important to understand what does affect your credit score than what does not. Different credit scoring systems calculate scores differently, but all look for patterns of behavior that reflect responsible credit management habits. FICO, creator of the FICO® Score☉ , lists the following as the most important factors that affect credit scores:\n1.  Bill payment history: Whether you're paying your debts on time as agreed is the single most important factor in determining your credit score. Timely payments promote score improvement over time, and even one missed payment will have a negative impact on your score. Payment history accounts for 35% of your FICO® Score.\n2.  Credit card balances: Your credit utilization ratio measures your total credit card debt relative to your total credit limit, on both an individual card basis as well as overall. It's almost always represented as a percentage, and as it climbs above 30%, it will have a negative effect on credit scores. Credit utilization accounts for 30% of your FICO® Score.\n3.  Length of credit history: The number of years you've held and managed debt makes up 15% of your FICO® Score. As long as you avoid missing payments and more serious credit missteps such as bankruptcy or foreclosure, your credit score will tend to increase as your credit history grows.\n4.  Credit mix: Credit scoring systems tend to favor credit histories that reflect a diverse portfolio of credit accounts, including a combination of installment loans (such as auto loans, student loans and mortgages) and revolving credit accounts (such as credit cards). Credit mix accounts for 10% of your FICO® Score.\n5.  New credit and recent applications: The number of credit accounts you've recently opened, as well as the number of hard inquiries that may have resulted from applications for credit, accounts for 10% of your FICO® Score. Too many new accounts or inquiries can hurt your credit score. END
 TITLE: Does Income Affect Credit Scores? CONTENT: How Your Income Can Indirectly Affect Your Score\n------------------------------------------------\nSince timely bill payments are so important to scoring models, it should be fairly easy to understand how loss of income can end up hurting your credit scores. If your income drops significantly due to unemployment, illness or other factors and you lack sufficient funds to pay your debt and credit payments, your credit score could be at risk. If you make payments late, miss them altogether or default on a debt, your credit score will surely suffer. END
 TITLE: Does Income Affect Credit Scores? CONTENT: How Your Income and Debt Can Impact Getting Approved for Credit\n---------------------------------------------------------------\nWhile low or reduced income does not influence your credit score, there are other ways it can affect your ability to qualify for loans or credit.\nEven if your credit score qualifies you for consideration for a particular loan or credit card offer, many lenders require proof of income, in the form of a pay stub or tax return, as part of their application process.\nIn addition, lenders typically consider the percentage of your monthly income (before taxes and other withholding) that you spend on debt payments—a measurement known as debt-to-income (DTI) ratio—when evaluating mortgage applications. Typically, to qualify for a mortgage loan, your DTI ratio should be no greater than 43%, and many lenders require DTI ratios of 36% or less.\nIncome isn't tracked in your credit reports, so it cannot influence your credit scores. To the extent a steady income enables you to keep up with your debt payments and to use credit responsibly, income is important to building and maintaining healthy credit scores. END
 TITLE: Do Employers Look at Credit Reports? CONTENT: Why Employers Check Credit Reports\n----------------------------------\nYour credit report is a chronicle of your financial history, including the loan and credit card accounts you've applied for and opened, how long you've had them, and whether you've made payments on time. Financial institutions use this information to determine whether you can be trusted to repay loans or pay credit card bills as required.\nIt's most common to undergo a credit check as part of a job application if you're an aspiring manager or you'll deal with finances or confidential information in the role. You could also be asked to undergo a credit check if you're being considered for a promotion.\nEmployers use credit checks to gauge your trustworthiness and aptitude at managing money. A hiring committee may think employees who can skillfully oversee their own finances would do the same for high-stakes projects at work.\nCompanies that run credit checks see a limited version of your credit report. It includes personal information to verify your identity (with the exception of your birth date); your Social Security number; and loan and credit card accounts, including payment history and whether any accounts are in collections. It won't include specific account numbers or information about your spouse. END
 TITLE: Do Employers Look at Credit Reports? CONTENT: Can an Employer See Your Credit Score?\n--------------------------------------\nEmployers who run credit checks cannot see your credit score. The report they receive includes information that contributes to your score, like payment history, and frequent late payments could be a cause for concern. But the three-digit credit number is not included.\nThe screening itself also won't make an impact on your credit score. That's because a credit check is considered a soft inquiry. Credit reporting agencies differentiate this type of query from a hard inquiry, which occurs when you apply for a loan or credit card. A soft inquiry doesn't involve a request for credit, so it's not a potential red flag for lenders the way several hard inquiries in a short time could be. END
 TITLE: Do Employers Look at Credit Reports? CONTENT: Can You Be Rejected for a Job Because of Your Credit?\n-----------------------------------------------------\nIn most states, it is possible for an employer to decline to hire you due to your credit history. It can be the sole reason for the rejection, or a single contributing factor among many.\nSeveral states limit employers' ability to use credit checks when making hiring decisions, however. These include California, Colorado, Connecticut, Hawaii, Illinois, Maryland, Nevada, Oregon, Vermont and Washington. Delaware restricts public employers only from incorporating credit checks into employment decisions. Some cities have passed laws too: New York City and Chicago, for instance, prohibit employer credit checks. For more information on your state's laws, visit the website for its office of labor.\nIf your employer does check your credit history, it will likely take many other elements of your application under consideration too. It will evaluate factors like the relevance of your previous experience, your educational background and references from within and outside the company. END
 TITLE: Do Employers Look at Credit Reports? CONTENT: Your Rights When Employers Check Your Credit\n--------------------------------------------\nEmployers must comply with regulations in the Fair Credit Reporting Act when conducting an employment background screening, which can include checking your credit. They must do the following:\n*   Explain to you in writing that the information they gather may be used to make hiring decisions. This explanation should be in a separate document than an employment application so that the process is as clear as possible.\n*   Receive written permission from you to conduct the screening. This may be in the same document as the one notifying you of the screening. Check if you're being asked to authorize a one-time credit check or if the company could repeat checks in the future.\n*   Notify you before you've been rejected for a job on the basis of your credit. The company must include a copy of the credit report they used to make the call and a summary of your rights under the Fair Credit Reporting Act.\n*   Give you time to respond to the employer's decision and to dispute any errors you find in the report.\n*   Provide an oral or written explanation of the employer's final decision to reject you for a job, known as an adverse action notice. The notice should include:\n    *   Information about the consumer reporting company that provided the employer with your credit report.\n    *   Confirmation that you have the right to dispute information in the report and get your own free copy within 60 days.\n*   Securely get rid of your credit report and any information collected from it. END
 TITLE: Do Employers Look at Credit Reports? CONTENT: How to Prepare for a Credit Check\n---------------------------------\nTo avoid a surprise when an employer checks your credit, get familiar with your financial history beforehand by checking your credit report for free from Experian. You're also entitled to one free report per year from each of the three credit reporting agencies—Equifax, Experian and TransUnion—which you can access on AnnualCreditReport.com.\nMake sure all the information is correct, including identifying information like your name and address, the accounts listed, and your payment history. If you find an error, dispute it using each credit bureau's internal procedure.\nSome employment screening companies let you request your own copy of the modified credit report an employer would see, generally once you've authorized an employer to conduct it. This can help you double-check that all the information is accurate.\nIf you were denied a job as a result of your credit, however, you'll always have the chance to view for free the report the company used. And checking your primary credit report will give you the opportunity to address any inaccuracies that would also be on the employer's version. END
 TITLE: Do Employers Look at Credit Reports? CONTENT: The Bottom Line\n---------------\nIf you're likely to be subject to a credit check when applying for a job or promotion, knowledge is power. Look at your credit report as soon as you begin a job search so that you can correct any mistakes, or improve your credit using time-tested strategies like paying all bills on time. That will help ensure that poor credit doesn't get in the way of your dream job.\nBut even if credit remains a concern during the job hunt, know your federal and state rights so that you can advocate for yourself throughout the process. You're entitled to fair legal treatment regardless of your credit history. END
 TITLE: How Long After You Pay Off Debt Does Your Credit Improve? CONTENT: Revolving Accounts (Credit Cards)\n---------------------------------\nA credit card is a form of revolving credit, meaning money can be re-borrowed as it's paid back, and there's no end term. When you have an active revolving credit account, your balance plays a major role in your credit utilization ratio, which influences as much as 30% of your FICO® Score☉ .\nYour credit utilization ratio measures how much of your available credit you're using at any given time. For example, if you have one credit card that has a balance of $1,000 and a credit limit of $2,000, your credit utilization rate is 50%. Credit scoring models look at how much of your available credit you're using both on individual cards and in total across all of your accounts.\nThere's no magic number to aim for, but generally a credit utilization above 30% can drag down your credit score. Keeping your utilization below that rate can help you improve your credit. Those with the highest credit scores tend to have credit utilization rates in the low single digits, according to Experian data.\nWhen you pay off a credit card balance and keep the account open, you're doing yourself a huge favor as far as your credit is concerned because you've reduced the amount of available credit you're using. This boost from paying off an account can be seen on your credit report quickly; lenders usually report account activity at the end of the billing cycle, so it could take 30 to 45 days for it to impact your credit report.\nIf you're tempted to close the account, however, remember that you'd be giving up that line of available credit. If you carry balances on other cards, closing a credit card may increase your credit utilization rate, which can lead to lower credit scores. For that reason, you'll typically get more benefit from keeping a paid-off account open, unless the temptation to rack up charges is too high or you're paying an annual fee that doesn't work with your budget. END
 TITLE: How Long After You Pay Off Debt Does Your Credit Improve? CONTENT: Installment Loans\n-----------------\nInstallment loans, such as mortgages or auto loans, have a set term with fixed monthly payments. Unlike a revolving credit account, once the borrower makes the final monthly payment, the account is closed. Another contrast to revolving credit is that zeroing out your balance on an installment loan may not have much of a benefit to your credit—in fact, it may actually cause your scores to drop.\nFor some, paying off a loan won't affect credit scores much at all. For others, it may cause a temporary drop. This can happen if it was your only installment loan, since having a mix of different types of accounts helps your score, and losing your one installment account can bring it down slightly. Additionally, if it was your only account with a low balance, paying it off can hurt your score if the other active accounts are a long way from being paid off.\nFortunately, any dips are usually temporary. Once the installment loan is paid off, your credit score should go back to where it was within one or two months. If your score doesn't shoot up after paying off the loan, don't despair: The paid-off loan will remain on your credit report for up to 10 years after the account closes. If your account was in good standing, having this positive history on your credit file can help your credit score in the long run. END
 TITLE: How Long After You Pay Off Debt Does Your Credit Improve? CONTENT: Negative Items\n--------------\nJust as responsible spending and debt repayment can benefit your credit for years to come, negative items on your credit report can hurt your score. Most negative items stay on your credit report for seven years, but others can last a decade. Here's what to expect:\n*   **Late or missed payments**: When a significantly late payment on a loan or line of credit is reported to the credit bureaus, it can stay on your report for up to seven years.\n*   **Collections**: Debt that's past due enough that it's sent to collections will be noted on your credit report and remain there for seven years. Collection accounts can have a significant negative impact on your score.\n*   **Bankruptcy**: Filing for bankruptcy can significantly hurt your credit score, and for a long time. Chapter 13 bankruptcy remains on credit reports for seven years, while Chapter 7 bankruptcy sticks around for 10 years.\n*   **Other negative marks**: Credit reporting agencies can also report foreclosures, repossessions and debt settlements for up to seven years since these all indicate that credit wasn't paid back as agreed. END
 TITLE: How Long After You Pay Off Debt Does Your Credit Improve? CONTENT: What Are the Credit Scoring Factors?\n------------------------------------\nAs you pay off and consider closing debt accounts, it's prudent to understand how your credit score is calculated and how your actions will impact it.\nThese are the top credit scoring factors to be aware of:\n*   **Payment history**: The most important factor, accounting for 35% of your FICO® Score, reflects whether you pay your bills on time. Missing even one payment can hurt your score; paying bills on time helps it.\n*   **Amounts owed**: Accounting for 30% of your FICO score, this factor indicates how much you owe on loans as well as your credit utilization rate on lines of credits. Keeping your utilization rate below 30% can benefit your credit.\n*   **Credit history**: The age of your accounts determines 15% of your score. The longer you've had credit accounts in good standing, the better, so it could be worthwhile to keep old credit card accounts open even if you don't use them often.\n*   **Credit mix**: The diversity of your credit accounts is less important, accounting for 10% of your score, but it can make a difference. For example, if you've only had installment loans (such as student loans or auto loans), opening a credit card account can improve your credit mix. That doesn't mean you should open a new account solely for this purpose, however.\n*   **New credit**: Whenever you apply for a new loan or line of credit, a hard inquiry goes on your credit report and can temporarily lower your score. Approximately 10% of your credit score factors in how many new accounts you've recently opened and how many hard inquiries you have, since an increase in those activities can make you look risky to lenders.\nIf you haven't reviewed your credit score or report in a while, it's worth a look to assess how each of these credit score risk factors affect you personally. END
 TITLE: Is Debt Counseling a Good Idea? CONTENT: When Does Debt Counseling Make Sense?\n-------------------------------------\nWorking with a debt counselor begins with signing a service agreement and bringing them up to speed on your financial situation. Being as upfront and honest as possible here can only help you—debt counseling is less about dwelling on your past mistakes and more about finding positive solutions you can feel good about. Once your counselor reviews your information, you can expect an initial meeting to begin mapping out a plan.\nThe potential benefits of debt counseling include the following:\n*   **It can help rebuild your credit.** Being over your head in debt can put your credit at risk, especially if you've fallen behind on payments. (Your payment history makes up 35% of your FICO® Score☉ .) The amount of debt you have as it relates to your available credit—your credit utilization—accounts for another 30% of your score. If you're struggling to find room in your budget to make your minimum payments, working with a debt counselor could help get you on the right track.\n*   **It can reduce debt-related costs.** Depending on your situation, your credit counselor may suggest enrolling in a debt management plan. This involves them negotiating new payment plans directly with your creditors. You'll then make one monthly payment to the counseling agency, and they'll pay your creditors on your behalf. The service will likely come with a monthly fee, but it could be worthwhile if you're able to lock in lower interest rates or waive certain creditor fees. Bringing down these debt-related costs can help you get out of debt faster because a larger percentage of your payments will go toward your principal balances. It can also help simplify and streamline your debt repayment efforts because you'll only have one payment to take care of.\n*   **It can boost your financial health.** Debt counselors don't just focus on your credit. They're trained to look at your financial big picture and provide guidance accordingly. This often includes assessing your income and expenses to help you create a budget that's tailored to your needs. Their advice could include everything from reducing your monthly expenses to increasing your income to understanding how to use credit responsibly. END
 TITLE: Is Debt Counseling a Good Idea? CONTENT: What Are the Drawbacks of Debt Counseling?\n------------------------------------------\nLike anything else, there are some drawbacks to seeking debt counseling. While some debt counseling services are free (more on this shortly), debt management plans typically come with a price. Every credit counseling agency is different, but initial setup fees generally range anywhere from $30 to $50. This is on top of a monthly fee that could set you back roughly $20 to $75.\nAnother downside of debt management plans is that they don't normally include all types of debt. Mortgages, car loans and student loans, for example, are usually off limits. What's more, you'll have to close the credit cards that are included in the plan, which will reduce your available credit. This, in turn, could drag down your credit score.\nIt's worth mentioning that there are no \"quick fixes\" or shortcuts when it comes to improving your credit. Even if you do choose to work with a debt counselor, strengthening your financial health ultimately falls on you to follow through with their guidance. END
 TITLE: Is Debt Counseling a Good Idea? CONTENT: How Much Does Debt Counseling Cost?\n-----------------------------------\nAs previously mentioned, enrolling in a debt management plan often comes with fees. With that said, there are many nonprofit credit counseling services that offer free initial consultations. These agencies are designed to educate the public about personal finance, which is why they aren't known for charging excessive fees. For-profit services, on the other hand, can be another story. Some may entice you with promises to magically repair your credit in exchange for exorbitant upfront fees—this is a red flag that you're likely getting scammed. Be sure to get price quotes in writing before making a commitment.\nAt the end of the day, debt counseling is meant to strengthen your financial outlook and make your debt feel more manageable. If a debt counseling agency is adding to your financial stress, it's OK to walk away and find another service. It's important to be patient, however, and recognize that while you might not like what a credit counselor has to tell you, they're an unbiased third party with an expertise in personal finance. END
 TITLE: Is Debt Counseling a Good Idea? CONTENT: How to Find a Debt Counselor\n----------------------------\nNarrowing your search to nonprofit credit counseling agencies is the best approach, as you want a counselor who's certified and acting in your best interest. Part of the journey is also understanding your rights. As a consumer, you can cancel debt counseling services whenever you like. Agencies are also legally obligated to provide written contracts for their services. Know that you can also report a debt counseling agency for any wrongdoing by reaching out to the office of your state's attorney general.\nAdditionally, organizations like the Financial Counseling Association of America and the National Foundation for Credit Counseling are trusted sources for locating a certified credit counselor. You can also find an updated list of approved credit counseling agencies in your state by consulting the U.S. Department of Justice website. END
 TITLE: Is Debt Counseling a Good Idea? CONTENT: Alternatives to Debt Counseling\n-------------------------------\nIt may be possible to tackle your debt on your own without debt counseling. Exploring financial assistance programs may provide resources that create breathing room in your budget so that you can direct more of your income toward debt repayment. Resources like the 211 Network, Benefits.gov and USA.gov are great places to start.\nMaking a realistic plan for getting out of debt also comes down to understanding your income, expenses and spending habits so you can build an effective budget. On top of that, you can look to your creditors to see if they're open to reducing your interest rates. Another action item is finding a do-it-yourself debt repayment plan that feels right to you. The snowball approach and avalanche method, for example, are two different strategies that can help you successfully repay your debt.\nIf your situation is dire and you're hoping to avoid bankruptcy, debt settlement may be a last-resort option. This involves working with a for-profit debt relief company that usually asks consumers to stop making their debt payments. Instead, you'll make payments into a savings account that's set up by the debt relief company. From there, they'll negotiate with creditors to see if they can satisfy the debt for an amount that's less than what you owe.\nIt's a process that can take years—and all the while, your missed debt payments will drive your credit score further and further down. Debt relief companies also charge consumers for their services. Consider this option if your only other choice is declaring bankruptcy. END
 TITLE: Is Debt Counseling a Good Idea? CONTENT: The Final Word on Debt Counseling\n---------------------------------\nThe best debt counseling services are often nonprofit agencies that have consumers' best interests at heart. Their services, which are typically free or relatively inexpensive, are designed to help folks strengthen their finances and make a plan for repaying their debts. This mission goes hand in hand with financial empowerment. Checking your free credit score and credit report with Experian can help you take control of your financial health and stay on top of your credit over the long haul. END
 TITLE: How Much Does Debt Counseling Cost? CONTENT: What Is Debt Counseling?\n------------------------\nDebt counseling—also known as credit counseling—involves meeting with a trained counselor who will evaluate your financial situation and find possible solutions for your issues with debt. The process begins with a 30- to 60-minute counseling session that involves going over information about your income, expenses, savings and what you owe. The counselor will offer insights and suggest alternatives for paying down your outstanding balances. In many cases, this preliminary counseling session is free.\nOne of the options a credit counselor may suggest is debt management plan (DMP). Here, the counseling agency works with your creditors to reduce your interest rates and may be able to extend your payment timeframe. They roll all of your monthly debts into a single payment you make to the debt counseling service, which will then pay your creditors.\nHaving a debt counseling agency make payments on your behalf does a few things. For one, it simplifies your monthly payments so you're less likely to forget making a payment on time. You also know exactly how much money you need to cover all of your debts for the month. The goal is typically to pay off your debt in three to five years, which gives you a light at the end of the tunnel.\nA DMP is not to be confused with debt settlement. Debt settlement involves a paid representative attempting to negotiate with your creditors to reduce the amount of debt you will repay. While this may offer you some relief, it also can hurt your credit in several ways. Settled accounts appear as negative information on your credit report, and the settlement process may require you to stop making payments toward your debt, which will then be counted as late. Debt settlement can be costly as well. If you're contemplating this strategy, make sure the cost of settlement plus the damage to your credit score and report don't outweigh the money you'll save by settling your debt for less than what was originally owed. END
 TITLE: How Much Does Debt Counseling Cost? CONTENT: Is Debt Counseling Expensive?\n-----------------------------\nNonprofit debt counseling agencies are created to serve the public interest by educating people about personal finance. To that end, their services are meant to be affordable and many of their services are free. When these agencies do charge, their fees are intended to cover their expenses—and not to turn a profit.\nWith many nonprofit credit counseling services, the initial consultation is free. If a credit counselor suggests a DMP and you agree to move forward, you may be asked to pay a setup fee and an ongoing monthly charge. Limits on these fees can vary by state. In California, for example, DMP fees may not exceed 8% of the amount paid to creditors or $35, whichever is less. California also allows for a $50 (maximum) education and counseling fee. Nationwide, DMP fees are capped at $79.\nBe wary of a counseling service that is for-profit or asks for hundreds or thousands of dollars upfront. Debt counseling should help improve your financial outlook, not send you further into debt. \"Get a specific price quote in writing,\" the Consumer Finance Protection Bureau advises. \"If an organization won't help you because you can't afford to pay, look elsewhere.\"\nEven if a DMP requires a modest setup charge and monthly fees, it should help you reduce your interest costs and make your payments more manageable. If you're presented with a plan that doesn't accomplish these goals, think twice about its usefulness. END
 TITLE: How Much Does Debt Counseling Cost? CONTENT: How to Get a Debt Counselor\n---------------------------\nFinding the right debt counselor is key. Steer clear of any for-profit credit counseling agencies, and be sure to do your due diligence in other regards as well.\nThe National Foundation for Credit Counseling refers consumers through its network of member agencies nationwide. Foundation-certified counselors adhere to professional and training standards and are committed to providing affordable services to credit-challenged consumers. The Financial Counseling Association of America also offers referrals. Its members agree to the association's standards and best practices, which includes adhering to IRS rules regarding nonprofit credit counseling agencies.\nThe U.S. Department of Justice maintains a list of approved credit counseling agencies. You can visit the Justice Department website to search by state or judicial district. You can also check with your state attorney general's office to learn more about credit counseling regulations in your state and look for a list of approved agencies. END
 TITLE: How Much Does Debt Counseling Cost? CONTENT: Alternatives to Debt Counseling\n-------------------------------\nIf you aren't ready to commit to debt counseling, you can also consider do-it-yourself options for paying off credit card debt. Two popular approaches to dealing with debt are the avalanche and the snowball:\n*   **Avalanche strategy**: Budget as much money as possible each month to use toward paying down credit card debt. Then, make minimum payments on all of your cards except the one with the highest interest rate; use all of your remaining credit card payment money to pay down the card with the highest interest rate. Continue with this strategy until the highest-interest card is entirely paid off, then pay down the next-highest-interest card the same way.\n*   **Snowball strategy**: This strategy is similar to the avalanche, but instead of starting with your highest-interest card, start with the card that has the smallest balance. When it's paid off, take aim at the card with the next smallest balance and continue until all of your cards are paid off.\nAnother alternative to credit counseling is a debt consolidation loan. This is essentially an unsecured personal loan you use to pay off your credit card balances. You'll still carry debt, but usually at a lower interest rate than your cards charge. Debt consolidation loans also provide structure: You pay the same amount monthly for a set period of time—typically three to five years—and then you're done with your debt. Personal loans are available for borrowers with a range of credit scores, but you'll have better luck finding a favorable interest rate and terms if you have good credit. Use Experian CreditMatch™ to learn more about debt consolidation loans and see a list of loans personalized to your credit score. END
 TITLE: How Much Does Debt Counseling Cost? CONTENT: Taking Charge of Your Finances\n------------------------------\nAs you go, monitoring your credit score and report can help you track your progress as you pay down debt and, hopefully, improve your credit. Taking on your challenges with debt isn't a fast fix. But getting objective help and guidance from a trained debt counselor can be a productive step toward finally taking charge of your finances. END
 TITLE: What Is Credit Card Debt Counseling? CONTENT: How Does Credit Card Debt Counseling Work?\n------------------------------------------\nDebt counseling, also called credit counseling, involves working with a professional to help you manage your debt. Certified credit counselors, financial advocates affiliated with nonprofit agencies such as the National Foundation for Credit Counselors, can help you get a better understanding of your debt and help you devise a plan to pay it off.\nWhen you meet with a credit counselor, they'll take the time to understand your finances and unsecured debt obligations. If you are struggling with credit card debt specifically, they will see how much you owe across how many accounts and will help you craft a repayment plan.\nIn cases of severe debt, a credit counselor may suggest a debt management plan (DMP), which outlines specifically how your debt will be paid off. As part of a DMP, you'll make one monthly payment to the credit counseling agency, which in turn will pay your creditors on your behalf. They will often negotiate repayment with your lenders, who may lower your interest rates. You'll usually pay a small upfront fee and ongoing monthly fee for the service, and you'll likely be required to close the accounts that are part of the plan.\nThough they may sound similar, a debt management plan is different from a debt settlement program. Debt settlement programs \"settle\" your debt for less than what you owe, and often require you to stop making payments on your accounts. Doing so can have a significant negative effect on your credit. Debt settlement is a last-resort option if bankruptcy is your only other avenue. END
 TITLE: What Is Credit Card Debt Counseling? CONTENT: Is Credit Card Debt Counseling a Good Idea?\n-------------------------------------------\nIf it becomes hard to manage your credit card debt on your own, credit counseling can be a great option to help you get back on track. Even if you feel you're simply spending too much and want to get some professional financial advice, a credit counseling session might do you some good.\nFalling behind on debt not only has implications for your credit, but paying interest for an extended period can be quite costly. Working with a credit counselor may help you pay down your debt more efficiently and possibly even save you some money.\nThough credit counseling can be a critical lifeline if you're struggling with debt, there are a few things to remember:\n*   **Some aspects of credit counseling sessions may cost money.** If you opt to work with your credit counselor on a [debt management plan]('), you'll pay around $30 to $50 to set it up, and $25 to $75 per month for the duration of the plan. If you have a multi-year plan, the monthly costs could add up. When you're researching credit counselors, ask them if there are any fees associated with their services, including the costs that come with a debt management plan.\n*   **Credit counseling is not a cure-all solution.** Though credit counseling can be helpful, it's not a magic bullet for all your financial woes. As you work to manage your finances, it's important to focus on building responsible habits for the future so you don't find yourself in a similar situation. Though credit counseling may help you get out of debt, it will ultimately be on you to stay out of debt moving forward. END
 TITLE: What Is Credit Card Debt Counseling? CONTENT: How Does Credit Card Debt Counseling Affect Your Credit?\n--------------------------------------------------------\nCredit card debt counseling will not directly impact your credit scores. That said, there are a few ways that working with a credit counselor could _indirectly_ impact your credit:\n*   If you enroll in a debt management plan, your accounts may be closed as part of the plan. This could lower the average length of your credit history, which could impact your score. If your credit counselor renegotiates any terms with your lenders, this change could also be reflected in your credit reports, causing your score to go down.\n*   Any progress you make toward paying down your debt should help improve your credit standing in the long run. END
 TITLE: What Is Credit Card Debt Counseling? CONTENT: Alternatives to Credit Card Debt Counseling\n-------------------------------------------\nCredit counseling is not for everyone. If you feel you can manage your credit card debt on your own—there are plenty of things you can do to take action now. Getting out of debt won't be easy, but if you develop a good plan and stick to it, you could start to see things improve in a matter of months.\nHere are a few strategies to consider as you work toward getting out of credit card debt:\n*   **Research debt repayment strategies.** When attacking a large amount of debt, your strategy will make a difference. With the _debt avalanche_ method, you'll make the minimum payments on all your cards, but put extra toward the credit card with the highest interest rate first. Once that card is paid off, apply the same strategy to the card with the next-highest rate until all your cards are paid off. With the _debt snowball_ approach, you'll pay extra toward the account with the smallest balance first, and then apply that extra payment amount to the card with the next-smallest balance until all your accounts are paid off. Typically, you'll pay less in interest using debt avalanche, but you'll realize quicker wins (paid-off accounts) with debt snowball.\n*   **Consider a debt consolidation loan.** One way to ease the process of paying down debt is by consolidating all or some of your balances into one larger loan. Doing this can save you money on interest and can help simplify the repayment process.\n*   **Hold yourself accountable.** The most important part of any debt repayment strategy is sticking to it. Once you start, do everything you can to continue your repayment as planned. It's easy to get off track, but sticking with your plan will help you get out of debt within the time you set out.\nAs you work to pay down your debt—whether you're doing it on your own or with a credit counselor—regularly checking your credit reports and scores can help keep you on track. Experian credit monitoring can also help you track your progress, and provides alerts when there are any changes to your credit report. END
 TITLE: How Does Debt Counseling Work? CONTENT: What Is Debt Counseling?\n------------------------\nDebt counseling, also called credit counseling, involves working with a professional who helps you assess your financial situation and work out practical solutions for improving your financial health, including paying down or paying off debt. Among the items a debt counselor can help you with:\n*   Objective feedback on your finances—income, expenses and debt.\n*   Actionable suggestions for making things better, for example by finding ways to bring in more income or reorganize your expenses.\n*   A better understanding of your debt, including your rights and responsibilities as a borrower.\n*   Devising a strategy to tackle your debts and improve your financial health.\n*   Establishing a debt management plan that keeps you on track month by month.\nHere's how debt counseling works: If you decide to work with a debt counseling agency, you'll sign an agreement and provide information on your finances. A credit counselor will contact you—often by phone—to talk about your concerns and objectives and discuss ideas for addressing your finances. As part of this service, your counselor may create an action plan for you.\nYou may also decide to work with your counselor to establish a debt management plan. This is an ongoing agreement that typically includes a small upfront fee and an ongoing monthly fee. With this arrangement, you make one monthly payment to the debt counseling service; they, in turn, make monthly payments to your creditors. By communicating with your creditors and taking your whole financial picture into account, debt counselors may be able to help you devise a plan to pay off your debts in three to five years.\nDebt counseling is not the same thing as debt settlement. Debt settlement companies attempt to negotiate reduced payments with your lenders, generally in exchange for a fee. In a debt settlement arrangement, you may indeed pay less than the full amount of your debt. The hitch is that you'll typically be asked to stop making payments on your debt, which will cause late payments to appear on your credit report and seriously damage your credit. If the settlement process is successful, the account will appear as \"settled for less than originally agreed\" on your credit report, which can also result in credit score harm. Late payments and settled accounts stay on your report and affect your credit score for up to seven years. It's best to avoid debt settlement in all cases unless bankruptcy is your only other option. END
 TITLE: How Does Debt Counseling Work? CONTENT: How Can Debt and Credit Counseling Impact Your Credit?\n------------------------------------------------------\nA debt management plan you create through credit counseling may help you avoid credit score harm. Your counselor may be able to help you negotiate a lower interest rate or lower minimum monthly payments that make it easier for you to repay your debts—but without settling your debt for less than its original value. In this way, you may be able to save your credit score and report from a negative hit.\nIdeally, debt counseling should improve your ability to repay your debts on time and manage your credit successfully. Timely payments every month help raise your credit score over time. Assistance with budgeting may enable you to use credit more effectively and stay away from unmanageable debt in the future. As for the counseling itself, it has no direct effect on your credit score. END
 TITLE: How Does Debt Counseling Work? CONTENT: Is Debt Counseling a Good Idea?\n-------------------------------\nIf you're feeling overwhelmed, debt counseling may indeed be a good option for you. Being stuck in a cycle of debt isn't just tiring; it can also be confusing, isolating and even paralyzing. Working with a professional credit counselor can help you overcome these obstacles.\nThat said, debt counseling doesn't work equally well for everyone. Credit counseling can be a catalyst for change, but only if you're prepared to do the work of creating and maintaining a plan. While initial consultations with a credit counselor are free, you'll pay a small ongoing fee above and beyond your monthly debt payments if you opt for a debt management plan. Before starting debt counseling, be ready to learn and make changes. A good credit counseling service can give you tools, but only you can use those tools to create a better financial position. END
 TITLE: How Does Debt Counseling Work? CONTENT: How to Find a Debt Counselor\n----------------------------\nThere are for-profit and nonprofit debt counseling services. Working with a reputable nonprofit service is the best way to go. In particular, be wary of for-profit \"credit repair\" companies that promise to fix your credit or erase negative information in exchange for payment. These companies are often scams, and won't do anything for you that you can't do yourself for free. Under the Credit Repair Organizations Act, companies offering credit repair services may not demand advance payment and must provide written contracts for their services. As a consumer, you have the right to cancel. If you have a problem with any credit repair company, file a report with your local consumer affairs office or your state's attorney general.\nFor help finding a nonprofit debt or credit counseling agency, check out the National Foundation for Credit Counseling and the Financial Counseling Association of America. Either can help point you in the direction of a certified credit counselor. The U.S. Department of Justice also maintains a list of approved credit counseling agencies by state. END
 TITLE: How Does Debt Counseling Work? CONTENT: Keeping Wise Counsel\n--------------------\nCredit is a powerful financial tool, one that's worth keeping sharp over time. Working with a debt counseling agency can help you better understand your finances—and the choices you have for improving your financial health. As you work on paying off your debts and improving your credit, you can access your Experian credit report and score to track your progress, or consider free credit monitoring to help you stay on top of changes as they occur. END
 TITLE: How to Improve Your Credit Score in 30 Days or Less CONTENT: How Often Is Your Credit Score Updated?\n---------------------------------------\nServices that show you your credit score may advertise that they update your score every month or even every week, but that doesn't mean the credit report information your score is based on has necessarily changed.\nYour credit score is calculated the moment it's requested based on the information that creditors report to the national credit reporting agencies—Experian, Equifax and TransUnion. Creditors report information to the credit bureaus on their own timeline, generally once every 30 to 45 days. They may not report to all three bureaus, or if they do, they may not report to all three at the same time.\nSo while your credit score based on data from Experian may have been updated based on recent reporting, that may not be the case with credit scores based on data from one of the other two bureaus.\nThat said, if you have a lot of accounts with multiple creditors, you may be able to get an updated score several times throughout the month as each reports to the credit bureaus.\nAlso, the amount your credit score changes will be based on the new information from your creditors. Some credit score factors have a bigger impact on your score than others. END
 TITLE: How to Improve Your Credit Score in 30 Days or Less CONTENT: What Factors Affect Your Credit Score?\n--------------------------------------\nYour FICO® Score☉ is influenced by five factors in your relationship with your creditors. Understanding each one and how much they impact your score can help you prioritize your efforts to improve your credit history.\n*   **Payment history**: The most important element, your payment history makes up 35% of your FICO® Score. Paying on time every month is crucial to maintaining a positive payment history. If you miss just one payment by 30 days or more, it could drop your score significantly.\n*   **Amounts owed**: The total amount you owe is a factor in your credit score, but this component focuses more on your credit utilization ratio than anything else. Your utilization ratio is the percentage of your available credit on credit cards and other revolving accounts that you're using at a given time. The lower your balances compared with your credit limits, the better it is for your credit score. This factor also considers how close you are to paying off your loans. Amounts owed makes up 30% of your FICO® Score.\n*   **Length of credit history**: The FICO® Score model considers how long you've been using credit, as well as the average age of your credit accounts. Opening multiple credit accounts in a short period can significantly decrease the average age of your accounts, so it's best to apply for new credit only when you need it. This factor makes up 15% of your score.\n*   **Credit mix**: Having different types of credit on your credit reports shows a broader capability of managing your debts. For example, having a credit card, an auto loan, student loans and a mortgage can be better than just having credit cards. However, you should avoid applying for new credit simply to bolster your credit mix. Your credit mix makes up 10% of your FICO® Score.\n*   **New credit**: The last 10% of your FICO® Score is determined by new credit accounts. Virtually every time you apply for credit, the lender will check your credit based on one or more of your credit reports. When this occurs, the credit report will record what's called a hard inquiry, which may cause your credit score to dip slightly for a short time. However, if you apply for multiple credit accounts in a short period, it could have a negative compounding effect.\nWhen you check your credit report and score, determine how well you're handling each of these five factors and what you can do to make adjustments for the better. END
 TITLE: How to Improve Your Credit Score in 30 Days or Less CONTENT: Fastest Ways to Improve Your Credit\n-----------------------------------\nIt's unlikely you'll be able to get your credit score to where you want it in just 30 days, but there are some actions you can take that can improve your score more quickly than others:\n*   **Pay off credit card debt.** Your credit utilization rate changes as your credit card and other revolving credit account balances change. If you have the means to pay down large balances in a short period—either with cash or via a consolidation loan—your credit score will be updated as soon as your lenders report the lower balance.\n*   **Become an authorized user.** If you have a family member who has a credit card with a positive history, consider asking them to add you to the account as an authorized user. Once that's reported to the credit bureaus, the entire history of the account will be added to your credit reports, which can help improve your score.\n*   **Use Experian Boost™† .** Historically, only credit accounts have been reported to the national credit bureaus. But with Experian Boost, you can also add your utility, phone and even streaming service payments to your Experian credit file in order to try to boost your credit score. To use this free tool, you'll connect your bank account and verify eligible positive payments. Once they're added to your Experian credit report, you'll be able to see the results instantly.\n*   **Dispute credit report inaccuracies.** Rarely, creditors may report inaccurate or unsubstantiated information to the credit bureaus. Check your credit report regularly to make sure everything is accurate. If you find something that isn't, file a dispute with the credit bureaus. If their investigation supports your claim, the information will be removed or modified and your credit score will reflect that change.\nAgain, improving your credit can be a long process, but taking these steps can give you a head start and give you the chance to see improvements early on in the process. END
 TITLE: How to Improve Your Credit Score in 30 Days or Less CONTENT: Is There a \"Quick Fix\" to Repairing Credit?\n-------------------------------------------\nUnfortunately, there's no way to improve your credit overnight. In some cases, credit repair companies may advertise fast results, but they can't do anything about your credit score that you can't do for yourself.\nCredit repair companies often promise that they can improve your credit score by disputing information on your credit reports for a fee. If negative information is legitimate, disputing it won't cause it to be removed.\nIn general, it's best to develop good credit habits and use them to build your credit history. Go over your credit report and the credit score factors above to plan out the steps you can take to improve your credit score now and in the future. END
 TITLE: How to Improve Your Credit Score in 30 Days or Less CONTENT: Building and Maintaining Good Credit Is a Lifelong Endeavor\n-----------------------------------------------------------\nIf your credit score isn't where you want it to be, building it can have a huge positive impact on your ability to get affordable credit and even cheaper auto and homeowners insurance rates. But once you achieve your goal, you may be tempted to focus less on your credit score.\nEven after building credit is no longer a priority, it's important to continue to practice good credit habits to maintain your positive history. With Experian's free credit monitoring service, you can get real-time updates when information on your Experian credit report changes. You'll also get free access to your FICO® Score powered by Experian data and your Experian credit report.\nAs you keep track of your credit score and the information that informs it, you'll be in a better position to make adjustments as needed to keep your credit score in tip-top shape. END
 TITLE: How to Get Credit Counseling or Financial Assistance CONTENT: General Credit Counseling\n-------------------------\nCredit counseling agencies offer a variety of free and low-cost services to consumers, such as:\n*   **Credit or debt counseling**: After completing an initial review of your goals and finances, the counselor may work with you to create a budget and explain different debt management options and programs.\n*   **Debt management plan**: If you're overwhelmed with unsecured debt, such as credit card debt, a debt management plan (DMP) may be a good option. With a DMP, you may have to close your credit cards, but a counselor will negotiate with your creditors to get lower interest rates, waive fees and bring past-due accounts current. You'll then make one monthly payment to the credit counselor, who distributes the money to your creditors with the goal of paying off the balances within three to five years.\n*   **Credit report review**: If you have questions about your credit reports or scores, a credit counselor may be able to explain what's in your credit report, look for inaccuracies and give you suggestions for improving your credit.\n*   **Required educational courses**: Some agencies are approved to offer courses that you may need to complete if you want to file for bankruptcy, purchase a home through a government program or get a reverse mortgage.\nReputable credit counseling agencies are generally nonprofits and typically belong to a certification organization such as the National Foundation for Credit Counseling or Financial Counseling Association of America. You can find local and national credit counseling organizations through these resources or by researching the U.S. Department of Justice's list of approved credit counseling agencies. You may be able to work with a certified counselor online, over the phone or in person. END
 TITLE: How to Get Credit Counseling or Financial Assistance CONTENT: General Financial Assistance Programs\n-------------------------------------\nFinancial assistance can come in many forms, from direct payments or subsidized housing to free food and household goods. Many programs are specific to certain states, counties or cities, and eligibility can vary widely. With this in mind, here are several resources hubs you can use as starting points to find different types of assistance:\n*   **211**: The 211 Network offers free and confidential guidance to help people find and sign up for assistance programs. You can call or text 211 to get started, or look online to see what types of assistance are offered in your area.\n*   **Benefits.gov**: This government website has a benefit finder tool you can use to see if you qualify for state or federal assistance programs.\n*   **Feeding America**: This directory can help you locate food banks and pantries that are part of the Feeding America network.\n*   **Free legal aid**: There are nonprofit legal clinics in many areas that may have consumer rights, employment and housing attorneys on staff who can answer your questions or represent you in court.\n*   **Rent relief**: Housing costs generally make up the majority of a household's monthly bills, and you may have fewer options if you're a renter. But help may be available.\n*   **USA.gov**: This government website provides information about a wide variety of government services. END
 TITLE: How to Get Credit Counseling or Financial Assistance CONTENT: Student Loan Counseling and Financial Assistance Programs\n---------------------------------------------------------\nStudent loans can be different from other types of debt, particularly if you have federal student loans. You may be eligible for different repayment plans, forgiveness and cancellation programs. Even private student loan lenders may offer hardship programs that allow you to temporarily stop making payments.\n**StudentAid.gov** is the main resource for federal student loan borrowers. If you have private student loans, you can reach out to your loan servicer and ask about assistance programs.\nAdditionally, nonprofit credit counselors may offer student loan counseling services, which could be a good option if you're looking for personalized advice. There are also consultants and attorneys who specialize in student loans. While you may need to pay for their services, it could be a worthwhile investment if you have a complex situation or have legal questions. END
 TITLE: How to Get Credit Counseling or Financial Assistance CONTENT: Medical Bill Counseling and Financial Assistance Programs\n---------------------------------------------------------\nIf you're looking for help with medical care, the government resources listed above may be a good place to start. Those tools can help you determine if you may be eligible for subsidized or free health care coverage through state or federal programs.\nWhen you already have medical debts, or if you need help with ongoing treatments or medication, other options may be available. You might consider taking one or more of the following actions:\n*   **Ask your health care provider for discounts.** Some may give you a discount if you can pay in full or make a down payment. Or, you may be able to get a low- or no-interest payment plan.\n*   **Hire a medical billing advocate.** Advocates can review your bills and negotiate on your behalf. Look through the Alliance of Claims Assistance Professionals and AdvoConnection directories to find several options, and ask the billing advocates about their experience with similar cases and their fees. Advocates may charge hourly, monthly, by the project or based on how much they save you.\n*   **Look for financial assistance with bills, treatments or medications.** Nonprofit organizations that focus on helping patients with similar diagnoses and needs may be able to help. Some of the many examples include: CancerCare, Cancer Financial Assistance Coalition, Children's Diabetes Foundation, CR3 Diabetes Association, Leukemia and Lymphoma Society, National Organization for Rare Disorders and Patient Access Foundation.\n*   **Seek out patient assistance programs (PAPs).** These are run by pharmaceutical companies and may be an option if you're having trouble affording medication or medical supplies. RxAssist and Medicare.gov have PAP search tools you can use to search for applicable programs. END
 TITLE: How to Get Credit Counseling or Financial Assistance CONTENT: Military Financial Counseling and Assistance Programs\n-----------------------------------------------------\nMilitary members and veterans can look for counseling services that specifically address their needs and assistance programs that they're eligible for based on their service.\nMilitary OneSource and the U.S. The Department of Veterans Affairs are good starting points for finding resources. For example, you can call Military OneSource at 800-342-9647 or start a live chat through the website to get connected to counselors who can provide free personal finance, tax or legal services.\nYou can also connect with others to learn more. The Military Family Advisory Network has programs focused on finances, wellness and building community. There's also a subset of the personal finance blogging space that focuses specifically on military members. The Military Wallet, The Military Guide, Military Life Planning and Her Money Moves are four well-known military finance blogs. END
 TITLE: How to Get Credit Counseling or Financial Assistance CONTENT: Learn About Your Credit and Additional Resources from Experian\n--------------------------------------------------------------\nExperian's blog can also be a great tool if you want to learn more about building credit, managing credit and finances, and how your credit can impact your life. The blog is frequently updated with new information to address consumers' latest questions and issues, such as the COVID-19 education hub. You can also create an account and get free credit monitoring from Experian, which comes with real-time alerts, credit score tracking and access to your Experian credit report. END
 TITLE: Should We Buy a House or Have a Wedding? CONTENT: Get Married and Wait on the House\n---------------------------------\nWhy choose a wedding over an investment in your future as foundational as a home? Here are just a few valid reasons to consider:\n*   **You want to avoid years of resentment.** Some people dream of the perfect wedding for decades—a dream that can persist, grow old and fester if the opportunity passes.\n*   **You don't want to buy a home together without getting married.** You certainly can buy a home without getting married first, but married couples enjoy some legal protections that unmarried couples do not.\n*   **You invested 14 months in \"at home\" time during the pandemic.** Now you're ready to spend on socializing at a swanky wedding ceremony.\n*   **You're in a good position to keep saving.** Even if you opt for the wedding now, you will probably want a home at some point. If you're gainfully employed, living below your means and not going to overspend on your wedding, you may be able to build up the additional savings you'll need for a down payment over the years to come.\n*   **Your finances and credit need time to recover.** Unlike a wedding, a home purchase isn't solely about spending. You need good credit, financial reserves and a stable, adequate income to qualify for a mortgage. If your finances took a hit during the pandemic, it might take a few years to rebuild your credit and maintain a steady income so you can qualify for a loan to buy the house you really want.\n*   **Your local housing market is on fire.** In some areas, home shopping has become high intensity. If you're not ready for bidding wars and purchasing property as-is, you may want to wait until the market cools off.\n*   **You want to keep your options open.** Maybe you're new in town and you haven't found your perfect neighborhood. Or you'd like to see if remote work will continue over the long term, enabling you to hunt for a home farther away from the office. If you're feeling unsettled for whatever reason, you might be happier not committing to a new home at this time. END
 TITLE: Should We Buy a House or Have a Wedding? CONTENT: Buy the House and Skip the Wedding\n----------------------------------\nAnd yet, buying a house is an appealing option. Although no one can predict how the housing market will go in the future, the difference between spending on a wedding and spending on a home is tangible: In one case you get a beautiful day and a meaningful rite of passage, but in the other you get real property you can live in for years. A home of your own is also an investment that can pay off down the road if its value grows.\nBefore you choose buying a house over paying for a wedding, make sure you're prepared for the long-term financial commitment. No question about it, getting married is also a massive commitment—one that's practical, spiritual and ideally lifelong. But buying a home is likely to be a decadeslong investment, and there can be real financial consequences if you don't pay your mortgage on time or you decide to sell before you've had a chance to build equity. You'll also be managing the costs of owning a home, which means paying for upgrades or repairs, insurance, maintenance and more. Maintaining a healthy emergency fund is just the first step in preparing for the financial unknowns that can come with home ownership.\nAnd though you aren't required to splurge on a fairytale wedding, if you forgo a big celebration in favor of putting down roots in a new home, you should have a wedding alternative that makes you both happy. That could mean putting off your wedding for a few years, going off to a romantic location and eloping, or staging a small but beautiful event with just a few close friends and family. END
 TITLE: Should We Buy a House or Have a Wedding? CONTENT: Can You Have Both?\n------------------\nOf course, nothing sounds better than having it all. There's only one way to know if you can realistically afford both a home and a wedding: Create some real-life scenarios. Here's where the genius of \"Marriage or Mortgage\" can help. Instead of spending time debating which of these life events has greater value, flex your project management and budgeting skills and develop some actual alternatives, just as they do on the show. It's the only way to know whether you'll be happy with either option—or both. END
 TITLE: Should We Buy a House or Have a Wedding? CONTENT: Say \"I Do\" to a Lifetime of Partnership\n---------------------------------------\nMeanwhile, don't miss the opportunity to ratchet up your joint financial planning skills while you work through your choices. Saving toward a common goal (or goals), creating a monthly budget, making joint decisions and dreaming about the future are critical building blocks for a lifetime of partnership. These skills will serve you well in almost any scenario, whether staged for TV or happily ever after. END
 TITLE: Should You Use a Credit Card to Pay for Wedding Expenses? CONTENT: Benefits of Using a Credit Card to Pay for Wedding Expenses\n-----------------------------------------------------------\nUnless you can afford to pay them all off immediately, you shouldn't charge every wedding-related purchase to your credit cards. Credit cards are still a great tool to have at the ready, however. Generous credit card benefits could help you finance your big day interest-free, and even reward you for your spending with points, miles or cash back you can put toward your honeymoon.\n*   *   **Save money with 0% intro APR periods.** You can pay for your wedding over an extended period (typically 12 to 18 months) without racking up interest charges if you get a card with an introductory 0% annual percentage rate (APR). The Chase Freedom Flex℠ is one option, with 15 months of 0% APR on purchases (14.99% - 23.74% variable APR after that)—plus, it includes some excellent perks, such as 5% cash back on travel purchased through Chase.\n*   **Maximize rewards with intro bonuses.** Rewards cards may incentivize you with a substantial intro bonus in the form of cash or points—that is, if you charge enough on the card during the allotted time. So, why write a check for the caterer or photographer when your purchase can instead go toward earning a bonus? The Chase Sapphire Preferred® Card, for example, rewards you with 100,000 bonus points if you spend $4,000 in the first 3 months you have the card. That's enough for $1,250 toward travel when redeemed through Chase Ultimate Rewards. Travel rewards like that can be a great way to save—or justify a honeymoon upgrade or two.\n*   **Personalize your advantages.** Cards with benefits that fit with your spending can save you money on the wedding and beyond. If travel is in your future, you may want to secure a hotel rewards card that can help you save on hotel bookings, or a card without foreign transaction fees for when you're abroad. You can strategize with multiple cards to reap the most rewards.\n*   **Protect your purchases.** The Fair Credit Billing Act allows you to file a dispute for products or services charged to your card that weren't \"delivered as agreed.\" Imagine, for example, a vendor stiffs you and doesn't deliver what they promised on your wedding day. When paying with a credit card, you'll have some additional recourse through your card issuer.\n*   **Borrow no more than you need.** With credit cards, you'll only owe what you charge to the card (plus interest if you carry over a balance). Some couples opt for a loan to cover wedding expenses, but they risk getting stuck with unnecessary debt if they borrow more than they end up needing. END
 TITLE: Should You Use a Credit Card to Pay for Wedding Expenses? CONTENT: *   **Maximize rewards with intro bonuses.** Rewards cards may incentivize you with a substantial intro bonus in the form of cash or points—that is, if you charge enough on the card during the allotted time. So, why write a check for the caterer or photographer when your purchase can instead go toward earning a bonus? The Chase Sapphire Preferred® Card, for example, rewards you with 100,000 bonus points if you spend $4,000 in the first 3 months you have the card. That's enough for $1,250 toward travel when redeemed through Chase Ultimate Rewards. Travel rewards like that can be a great way to save—or justify a honeymoon upgrade or two. END
 TITLE: Should You Use a Credit Card to Pay for Wedding Expenses? CONTENT: Disadvantages of Using a Credit Card to Pay for Wedding Expenses\n----------------------------------------------------------------\nWe wish it could be all discounted honeymoon flights and fun, but there are several reasons you may want to avoid using your card:\n*   **You could go into debt.** Credit cards are a very convenient option, which can make it easier to overspend. Starting a marriage with credit card debt is something many couples would prefer to avoid. But if you have a plan to pay it off, and can afford to do so, you may feel comfortable using a credit card to cover some wedding costs.\n*   **You could face high interest rates.** Unless you pay off charges before the end of a 0% intro APR period, any balance you carry may face steep interest charges. Credit cards tend to have much higher interest rates than other financing options, such as personal loans. Even with generous card benefits, interest charges can easily put you in the red if you're not careful.\n*   **You could hurt your credit score.** Buying a home after the wedding? A good credit score can unlock affordable loan rates. Wedding purchases that max out your card or increase your credit utilization ratio, however, could drag down your score. Missing one or more payments on a credit card can take a major toll on your credit score.\n*   **You could incur fees.** Rewards cards can become far less appealing if you have to pay a steep annual fee. Some wedding vendors may also charge a processing fee for credit card payments, tacking up to 4% more onto your purchases. END
 TITLE: Should You Use a Credit Card to Pay for Wedding Expenses? CONTENT: Alternative Ways to Pay for Your Wedding\n----------------------------------------\nA credit card isn't your only option to cover wedding costs, and you can mix and match the alternatives.\n*   **Pay in cash.** You could simply use cold, hard cash—preferably from a dedicated savings account where you stashed away wedding funds. You won't enjoy the same level of rewards or consumer protections, but you can avoid interest and spending money you don't have. You might even prolong your engagement to help you save more and avoid wedding debt.\n*   **Forgo the big ceremony and head to city hall.** Or, you could downsize your wedding plans to be less extravagant. You don't need to eliminate all the bells and whistles, but you may want to narrow down your guest list or cut venue costs to avoid taking on too much debt or depleting your savings.\n*   **Use a high-yield account.** Stash your wedding savings somewhere that can earn you money passively. High-yield savings accounts can provide better returns than standard savings accounts. For example, the Cashero account becomes available from Wells Fargo starting in June, and can earn you up to 5% annual percentage yield (APY) on your cash, paid out daily.\n*   **Think about your registry.** Do you really want a new blender more than a loaded bank account? If the answer is no, consider alternative wedding registries with sites like Honeyfund so your guests can pad your savings or help fund your honeymoon.\n*   **Consider a personal loan.** With a good credit score, you can probably land lower interest rates on a loan than you might with a typical credit card. However, you may face additional fees and you'll be saddled with the balance whether you spent the total amount of the loan or not. END
 TITLE: Should You Freeze Your Child’s Credit File? CONTENT: How Child Identity Theft Happens\n--------------------------------\nIdentity theft typically happens when a person uses someone else's name, Social Security number (SSN) or other personal information to commit fraud. When a child is the victim, it is usually related to their SSN. Often the theft remains undetected for years, only to be unearthed when they grow up and check their reports or start applying for credit.\n\"Child identity theft is usually a form of synthetic identity theft, which is when a thief uses a combination of true and fictional credentials to start and use accounts,\" says Eva Velasquez, president and CEO of the Identity Theft Resource Center. With your child's real SSN, the thief creates a fake identity, which is often used to open new credit cards or loans. The thief will rack up debt and not pay, which is then recorded on the reports associated with the SSN—your child's.\nAccording to Velasquez, there are a couple ways thieves might overtake your child's SSN. Some invent the numbers, and when the Social Security Administration issues the same one to your child at birth, the number is already tainted. Another method is when someone you know has or had access to it; it could be another parent (usually in a divorce situation), a relative or family friend.\nChildren in the foster care system are especially vulnerable to identity theft. \"It's rather common for these kids to be passed around from one person to the next,\" says Velasquez. \"Their odds of being an identity theft victim are much higher than the general population.\" END
 TITLE: Should You Freeze Your Child’s Credit File? CONTENT: One of the most effective ways to prevent a thief from opening credit cards and loans in a child's name is to freeze his or her credit file. The major credit reporting agencies (Experian, TransUnion and Equifax) offer this tool. When it's in effect, a lender can't check that credit file, so they wouldn't be able to issue a credit card or loan in your child's name.\nYou can freeze a credit report for a minor in your care as long as they're age 15 or younger. Once a child turns 16, they'll be able to manage the freeze on their own. A credit freeze can take up to five business days after the request is received to go into effect. To thaw a credit freeze, you'll have to use a password-protected account or a PIN (personal identification number).\nTo freeze a child's credit report through Experian, you'll need to submit a freeze request by mail. This request will need to include copies of various identification forms, including the child's birth certificate and Social Security card, as well as identification forms and proof of guardianship belonging to the adult requesting the freeze. END
 TITLE: Should You Freeze Your Child’s Credit File? CONTENT: Talk to Your Child About Credit Reports\n---------------------------------------\nDiscussing identity theft and credit reports with your child is important. \"It's part of good identity hygiene,\" says Velasquez. \"You have to educate your kids early.\"\nHere are some ways to get started:\n*   Review what credit and reports are, and why you want your child's identity to be protected against thieves.\n*   Warn your child against sharing or exposing personal identification data, and encourage them to inform you if they suspect a problem.\n*   If you've frozen your child's credit reports, explain why you did so and what it means.\n*   When your child is nearing 16 years old, prepare them to assume control. Show how to thaw the file.\n*   Teach wise credit monitoring habits and identity theft protection techniques.\nFinally, it's always a good idea to consider all potential problems that could arise when you've frozen a credit report. You don't want to prevent access when your child needs it, so if he or she is too young to have autonomy, keep a record of passwords and PINs for your chosen custodian to provide in the event you are not there to provide them. With this kind of preparation, you can be sure you've done everything possible to safeguard your child against a myriad of dangers. END
 TITLE: When Is the Best Time to Give My Kid a Credit Card? CONTENT: What Should My Kids Know ing Credit Cards?\n--------------------------------------------------\nWhile credit cards sometimes get a bad rap, usually from stories of folks who become mired in high interest credit card debt, they are actually useful financial tools. When used responsibly, they help you establish and build credit, which makes it easier to qualify for other forms of loans and credit in the future, such as a car loan or mortgage.\nYour children may not be prepared to get their own credit card until college, but it's never too early to start teaching them about the ins and outs of credit.\n### Benefits of Credit Cards\n*   Credit cards are often the first way a person begins to establish and build credit history. Whenever you open a credit card, it goes on your credit report, which also tracks your balance and repayment history. This is important because your credit report will be used by lenders and others to determine whether you are financially responsible.\n*   When a credit card user makes responsible choices, such as keeping their credit utilization rate low and paying bills on time, this can help build a good credit history and high credit scores. These are typically necessary to qualify for other means of credit later in life, such as a car loan, mortgage or even financing for a smartphone. Credit is also sometimes checked when you apply for a job or an apartment to assess your financial responsibility.\n### Downsides of Credit Cards\n*   While your income is a factor in what credit limit you're given, it's still possible to use credit cards to spend more than you can afford to pay off every month. Kids should know that credit cards aren't meant to be a way to purchase what you can't afford and live beyond your means, but rather as a short-term loan for emergencies or credit-building purposes that they must repay as quickly as possible to maintain good credit.\n*   Credit cards don't lend you money for free. While some do offer 0% introductory rates, they don't last forever; other credit cards have steep interest rates from the start. Kids should learn that interest is the price paid to borrow money, and high interest rates make debt even more expensive and difficult to pay off.\n*   While smart credit card use can help build and improve your credit, being irresponsible with plastic can tank your credit. Your child should know that if they make late payments, their credit will suffer; and if they default on a debt, it can go to collections and seriously damage their credit for years to come. END
 TITLE: When Is the Best Time to Give My Kid a Credit Card? CONTENT: When Should I Get My Kid a Credit Card?\n---------------------------------------\nNot every teen is prepared for the responsibility and long-term consequences that come with a credit card. The good news is young consumers can't get a credit card on their own until age 18, and not until age 21 unless they can prove they have sufficient income to make payments, according to the Credit CARD Act of 2009.\nHowever, parents can add their minor children as authorized users on their credit card accounts if they feel they're ready. This means the kids will receive a credit card that's linked to their parent's account. Some, but not all, credit card issuers have age minimums for authorized users. For example, Discover requires the child to be at least 15 years old.\nWhether your child should get access to a credit card is up to your discretion. What's more important than their actual age is their maturity; in other words, if you think they're ready to be financially responsible and fully understand the long-term consequences of credit card use.\nCommunication is key. Sit down and talk with your child, and make sure they understand how credit cards work. If you plan to have rules around their credit card usage—for example, allowing use for emergencies only, or perhaps gas purchases—consider whether you think they're capable of following your guidelines. Since they will be an authorized user on your account, you'll see all of their purchases. This means you'll be able to monitor their activity and have a talk (or take away the card) if you determine that they aren't really ready for it.\nIt's also important to discuss who's in charge of paying the bill. Will it be you, or your child? T. Rowe Price's 2017 Parents, Kids and Money Survey found that 18% of kids ages 8 to 14 have credit cards, and of those, 41% of parents require their kids to pay their own credit card bills. END
 TITLE: When Is the Best Time to Give My Kid a Credit Card? CONTENT: Which Credit Card Should I Get My Child?\n----------------------------------------\nAs we mentioned, one option is to add your child as an authorized user on your existing credit card account. Another strategy, if they are 18 or over, is to cosign on a credit card so they can get approved with your help, since most credit cards usually require some amount of established credit history.\nOne option for those 18 years and older who haven't built any credit yet is a secured credit card. These are intended to serve as a low-risk way to build credit history and require a small deposit that's equal to your credit line. After a certain period of responsible use, the account holder has often built up enough credit to qualify for a standard unsecured credit card, if the card issuer offers one.\nOther starter credit cards include unsecured cards intended for those with limited credit history. The interest rates on these cards can be high, so ensure your child doesn't carry a balance if they get a card like this. The goal should be to make purchases they can afford (ideally everyday purchases they'd be making anyway) and pay the bill off quickly, before interest is charged on it.\nIn addition, there are some alternative credit products to consider, such as Petal. This is a credit card that doesn't require a credit history, but instead uses other factors like financial history to approve applicants. END
 TITLE: When Is the Best Time to Give My Kid a Credit Card? CONTENT: Start Credit Education Early\n----------------------------\nNot every young person is ready for the huge responsibility of a credit card, but parents who start educating their children about credit early can help set them up for success later in life. For kids who are ready, there are many options. If they're ready for their own card, check out Experian CreditMatch™ to learn about credit cards ideal for those with a limited credit history. END
 TITLE: Does Getting Married Combine Your Credit Reports? CONTENT: Married Couples Have Separate Credit Reports\n--------------------------------------------\nEveryone has their own credit report, even after marriage. Each individual's credit history contains only the information that is reported in their name, including payment history for accounts for which they've cosigned.\nWhen you change your last name, you must update your information with the Social Security Administration, on your government ID and passport, and with each of your financial account holders. When your lenders report your accounts in your new name, Experian will match it to your existing history and update their information. But taking your spouse's name does not mean your credit histories will be combined. The only time an account will appear on both of your credit reports is if you open a joint account or cosign a loan together. END
 TITLE: Does Getting Married Combine Your Credit Reports? CONTENT: Can Marriage Affect Your Credit Score?\n--------------------------------------\nIt's important to remember that marriage does not directly affect your credit, and marital status is not included in your credit report. A spouse's accounts and credit history prior to the marriage will not be added to your credit report after you are married, unless your name is added to those accounts.\nYour account history will not be added to their report either—unless you add them as a joint owner on your accounts. If you do have joint accounts in both of your names, then the payment history on that account will affect both of your credit scores. Marriage can affect your credit if your spouse is responsible for paying your joint monthly car loan bill, for example, but misses the payment; in that case, your credit score will suffer too. That's also true if you cosign for a spouse's student loan and they fall behind on payments.\nOn the other hand, you or your spouse might benefit from becoming a joint account holder on the other's accounts if one of you has especially good credit. This can be important if you will apply for joint accounts in the future that will require both of your incomes and credit history to qualify, such as a car loan or mortgage. END
 TITLE: Does Getting Married Combine Your Credit Reports? CONTENT: What to Do if Your Spouse Has a Poor Credit Score\n-------------------------------------------------\nThere are ways to support your spouse if they're struggling with poor credit. To start, encourage them to get a free copy of their credit report to view all their accounts and payment history. That can help you both identify which areas to focus on, such as making payments on time, lowering debt balances or lengthening credit history.\nGetting your free credit scores can help both of you improve your credit. It can also help you understand which behaviors or accounts are affecting credit scores most. Many credit card issuers, banks and lenders offer customers scores for free; other personal finance websites and financial institutions also provide free score monitoring to non-customers. A good goal for you and your spouse should be to reach a score of 670 or higher; that's considered a good score by the FICO® Score☉ model, and will qualify you for more financial products at lower interest rates.\nA few key ways to improve credit are to automate monthly payments so your spouse doesn't forget them, and to pay down debts to lower credit utilization, or the amount of debt outstanding compared to the credit limit. Your spouse will save the most money if they target the highest-interest debts first, using the debt avalanche method, but they may feel more accomplished if they pay off smaller debts one by one using the debt snowball method. END
 TITLE: Does Getting Married Combine Your Credit Reports? CONTENT: What to Remember About Marriage and Credit\n------------------------------------------\nMarriage will not automatically merge two people's credit histories. But it does open up the possibility that you'll see effects to your credit if you cosign a loan or open other joint accounts with a spouse. Make sure to take into account any immediate or potential impact to your credit before going forward with any financial decisions in your marriage. END
 TITLE: How to Buy a House Together—Even If You’re Not Married CONTENT: Applying for a Mortgage When You're Not Married\n-----------------------------------------------\nAside from VA loans, most mortgage products are available to co-borrowers whether or not they're married. So, with most lenders, applying for a mortgage when you're not married doesn't look much different than it would if you've said \"I do.\" That's true whether you're a couple, friends or siblings; in the eyes of the lender, it's the numbers that count.\nYou and your buying buddy will apply as co-borrowers, and the lender will review each of your assets, debts, incomes and credit scores. Generally, the lender will pull three scores—one from each credit bureau—for both you and your co-borrower, and use the lower of your collective median scores.\nLet's say your scores are 680, 700 and 720. Your co-borrower's scores are 650, 660 and 670. The lender will take both of your middle scores (700 and 660), and then base your application on the lower one (660). This table might help illustrate (the bolded score is the one a lender would use):\nYour credit scores\nYour co-borrower's credit scores\n720\n670\n700\n**660**\n680\n650\nIn general, the FICO® Score☉ your lender considers will need to be at least 620 for you to qualify for a conventional mortgage, though other loans are available to buyers with scores as low as 500. You should also aim for a front-end debt-to-income ratio below 28 percent.\nIf you or your co-borrower aren't sure where your credit stands, get your credit score and report for free from Experian to find out. You can get a copy of all three of your credit reports (from Experian, TransUnion and Equifax) for free through AnnualCreditReport.com. Review your reports and scores, and take action if necessary to make sure your credit is mortgage-ready before you apply. END
 TITLE: How to Buy a House Together—Even If You’re Not Married CONTENT: Going Solo on the Mortgage\n--------------------------\nIf one of you has much higher credit scores or a much lower debt-to-income ratio, that person might want to consider applying for the mortgage on their own. You can usually ask your lender to look at what rates and loans you would qualify for individually and together.\nIf you're not sure how long the relationship will last, going solo can also keep things simple in the event of a breakup. (Of course, if you live in a high-cost area, it might not be possible to qualify for the mortgage on one income.)\nIf you do end up applying for the mortgage on your own, remember that the entire burden of paying the debt will legally be on your shoulders—no matter what your co-borrower promises. And, if their name is on the title, they will have rights to the home even if they're not contributing financially.\nOn the flip side, if it's your partner who is applying for the mortgage on their own, and they want to keep you off the title, you should speak to a real estate lawyer to outline your rights regarding living in the home and getting reimbursed for payments should the relationship end. END
 TITLE: How to Buy a House Together—Even If You’re Not Married CONTENT: Think Carefully About the Title\n-------------------------------\nOne of the most important decisions you'll make when purchasing a home with another person is how you'll \"hold title,\" or how you'll split ownership of the house. Just like the mortgage shows who is responsible for paying off the loan, the title shows who owns the property.\nWhereas laws dictate what happens to shared property when a married person gets a divorce or loses their spouse, unmarried people will need to forge their own path, with the title playing a crucial role.\nThough different states have different rules, you will generally have three options when it comes to titling your new house:\n1.  Sole ownership: This means that one person is the legal owner. If that's the other person, you should be aware that you won't have legal rights to the home—and if the relationship goes sour, you could lose both your place to live and any money you put toward mortgage payments.\n2.  Joint tenancy with right of survivorship: With joint tenancy, you each have an equal share. You can't sell the property without getting the other owner's permission. If one of you dies, the surviving partner will automatically inherit the other's share—no probate court required.\n3.  Tenancy in common: This allows for unequal ownership, meaning you could own 75% of the home while your partner owns the other 25%. This might come in handy if one of you forked over the majority of the money for the down payment. If you go this route, note that one owner can sell their share of the property without informing the other. And, in the case of one owner's death, the surviving owner will share ownership with the other owner's heirs, unless otherwise specified in a will. END
 TITLE: How to Buy a House Together—Even If You’re Not Married CONTENT: Draw Up an Agreement\n--------------------\nOnce you've determined how you will title the home, you should put everything about your purchase into writing. This is sometimes called a cohabitation agreement or a \"no-nup\" (as opposed to a prenup).\nYour agreement should outline who's covering which expenses (taxes, insurance, mortgage payments, utilities, etc.) during your tenancy, as well as what will occur in a variety of unforeseen circumstances, including a death, breakup or loss of income. Additionally, if one person is funding the down payment, they might want to include a schedule for repayment from the other party.\nSome questions your agreement should address: What happens if one of you loses your job? What if you break up and one or both of you want to remain in the house? Can one party buy the other out, and if yes, how long do they have to do so? Who will get the furniture and other items within the home?\nIf you want the agreement to stand up in court, it might be wise to have a real estate attorney draft or review it. No matter what, it's better to run through these scenarios now, when you're both feeling conciliatory and generous—because if you can't agree later, you'll have to let a court decide for you, which could result in a mountain of legal fees. END
 TITLE: How to Buy a House Together—Even If You’re Not Married CONTENT: Three Things to Consider Before Moving Forward\n----------------------------------------------\nRegardless of how solid your relationship is, there are always potential pitfalls that could occur when you're buying a house with someone you're not married to. Here are three things you should be thinking about.\n1.  Your credit (and shelter) is at risk. If your name's on the mortgage, and your partner can't or won't contribute to the payments anymore, that doesn't mean you're off the hook. You are both equally liable for the payments; if you're unable to afford to make payments in full without their help, you could face foreclosure, which will cost you your home and severely damage your credit scores.\n2.  You will need to refinance to take one person's name off a joint loan. Even if you move out, your name will remain on the mortgage. The loan will still appear on your credit reports—and, if the other owner falls behind on payments, it will damage your scores. In your cohabitation agreement, you might want to stipulate that the house will be refinanced in the event of a breakup. (Though keep in mind the other owner will then need to qualify for the entire loan on their own.)\n3.  Only one person is eligible for the mortgage interest tax deduction. Since unmarried people file their taxes separately, only one of you will be able to deduct the mortgage interest from your return. This only matters, however, if you plan to itemize. END
 TITLE: How to Buy a House Together—Even If You’re Not Married CONTENT: Get on the Same Financial Page\n------------------------------\nA mortgage on a home might be the biggest (not to mention longest-lasting) financial commitment you'll ever make. So before taking this major step, make sure you and your co-borrower have a deep understanding of each other's financial situations.\nIf you're buying a home with a partner and you haven't had the money talk yet, then you need to remedy that—and stat. Before even starting to browse Zillow or Redfin, you should have a good grip on each other's debts, incomes and credit scores.\nHopefully your financial habits jibe too. Once you make such a major purchase with another person, both of your spending patterns are going to be under a microscope. What if you want to get the roof replaced, but your partner says they don't have the money (despite the fact they go on vacation every other month)? How will you handle that? Getting on the same page financially is an essential first step.\nAlthough buying a house with someone you're not married to isn't all that different from buying a house with someone you are married to—this is the 21st century, after all—it can certainly add a layer of complexity to an already complex process.\nTo keep things as painless as possible, be sure to communicate openly, think carefully about who's going on the mortgage and title, and make contingency plans (in writing!) before moving forward. END
 TITLE: Can Having More Credit Cards Help Your Credit Score? CONTENT: Does Getting More Credit Cards Affect Your Credit Score?\n--------------------------------------------------------\nWhen it comes to your credit score, how you use credit cards is more important than the number of cards you have. Whether you own two credit cards or 12, your score will suffer if you accrue debt you can't pay.\nOn the other hand, if you use your cards to pay for purchases that you then pay off right away, having more credit cards can result in a credit score increase. That's primarily because more cards result in a higher combined credit limit. If you use only a small portion of that limit each month—experts recommend 30% or less—the credit scoring algorithms will reward you for responsibly managing credit.\nBut this means that it's important to keep spending in check. Consider sticking to a monthly budget to help, or using certain credit cards only for specific purchases. It's also crucial to pay off your balance completely each month, and on time. That will ensure your credit cards are working as hard as possible for you and your credit score. END
 TITLE: Can Having More Credit Cards Help Your Credit Score? CONTENT: Each credit card you hold comes with a credit limit. Multiple cards give you access to a larger total credit limit, and maintaining the same level of spending after you get more cards can lead to good credit. That's because credit utilization, or the percentage of your total credit limit you use, is one of the most important contributors to credit: The amounts you owe on your accounts make up 30% of your FICO® Score☉ .\nHere's an example: Say you currently have one card with a limit of $1,000, and you make $200 worth of purchases each month on average. That gives you a credit utilization rate of 20%. Getting a second card with a limit of $1,000, but continuing to spend $200 each month on your cards in total, increases your limit to $2,000—and drops your utilization to 10%. Utilizing a small amount of your available credit can help your credit score.\nThe only more important credit scoring factor than credit utilization is payment history. Paying all your bills on time is the best way to build good credit. Late payments stay on your credit report for seven years and hurt your score. Positive payment history stays longer—10 years, in fact, even after an account is closed. Making all credit card payments on time across multiple cards has the potential to help your credit score. END
 TITLE: Can Having More Credit Cards Help Your Credit Score? CONTENT: How Multiple Credit Cards Can Hurt Your Credit Score\n----------------------------------------------------\nIt's generally not a wise idea to open several credit cards at the same time. Here's why:\n*   Newer accounts lower the average age of your credit history. Credit scoring methodologies reward you for longer periods of credit usage. Newer accounts haven't given you the opportunity to demonstrate positive spending and payment behavior, and as a result, your credit score can suffer.\n*   Applying for new credit means the lender will ask to evaluate your credit report, leading to a hard inquiry on your report. Hard inquiries can cause a temporary drop in your credit score, though typically only by a few points. Applying for new credit, especially many new credit card accounts at once, can hurt your score.\n*   Since having more credit cards means you'll have a higher credit limit, that could tempt you to spend more than you can afford to pay off each month. Carrying a balance from month to month, using a high percentage of your credit limit and paying late can all damage your credit score.\n*   More credit cards also means more due dates to keep track of. If that is difficult for you to manage and you're at risk of paying late, applying for several credit cards may not be worth the possibility of damaged credit.\n*   Closing a credit card can lower your score, since that can reduce overall credit limits (possibly increasing utilization). So when you open a new credit card, it's generally best to stick with that card for the long haul. If you're not sure you want to use it for the long term, consider avoiding opening the account. END
 TITLE: Can Having More Credit Cards Help Your Credit Score? CONTENT: How Many Credit Cards Is Too Many?\n----------------------------------\nThere's no ideal number of credit cards to keep. According to Experian data, the average U.S. consumer had 3.84 credit card accounts as of the third quarter of 2020. But that doesn't mean three or four cards is the right number for you.\nOnly apply for credit cards that offer perks you truly want or need, and that you're likely to take advantage of. Think doubly hard about applying for cards that come with annual fees, since you'll need to make at least enough use of any points or miles programs to justify that fee. And remember that ideally, your spending won't increase when you get a new credit card—that way, you can benefit from a lower credit utilization rate. END
 TITLE: Can Having More Credit Cards Help Your Credit Score? CONTENT: Making Use of Multiple Credit Cards\n-----------------------------------\nSince there's no correct number of credit cards to have, focus instead on using sound financial judgment across all the credit card accounts you choose to open. Generally, as long as you keep credit card balances low and always pay the bills on time, your credit scores will stay strong. You're just as likely to have good credit if you have two cards as if you had five or 10. END
 TITLE: How Do I Find Out What Debts I Owe? CONTENT: Check Your Credit Reports\n-------------------------\nThe first stop in determining what debts you owe should be to get your credit reports from the three major credit bureaus: Experian, TransUnion and Equifax.\nCreditors generally report debt accounts to one or more credit bureau, which then add it to the credit report they maintain. Account types you'll be able to find on your credit reports include credit cards, personal loans, mortgages and more. Your credit report lists the amount owed on every account, along with its status and payment history, and contact information for the creditor handling the debt.\nUnder federal law, you can obtain one free copy of your credit report every 12 months by visiting AnnualCreditReport.com. You also can see your free Experian credit report at any time. Through April 20, 2022, the three bureaus are offering all U.S. consumers free weekly credit reports through AnnualCreditReport.com. END
 TITLE: How Do I Find Out What Debts I Owe? CONTENT: Some Debts May Not Show Up On Your Credit Report\n------------------------------------------------\nMost major lenders report account activity to the credit bureaus, but they're not required to. Therefore, a creditor may not share your account information with the credit bureaus.\nOld debts may not be included on your credit report, depending on how old they are. Even if they originally appear on your credit reports, accounts closed in good standing are removed from your reports after 10 years. Accounts closed as a result of late payments are removed after seven.\nThere are also exceptions to the types of debt you might expect to find on your report. Medical debt, for instance, is generally not listed on credit reports unless it becomes severely past due and is reported as a collection account. Retailer payment plans aren't commonly reported to the credit bureaus, either.\nIn some cases, the account will only appear on your credit report if the creditor turns your account over to a debt collection agency. Typically, the original creditor will be listed along with the collection account.\nIf you don't see a debt on your credit report, you also can search through old bills or contact creditors to nail down all the debts you owe. END
 TITLE: How Do I Find Out What Debts I Owe? CONTENT: How to Pay Your Debts After Finding Them\n----------------------------------------\nSo, once you've pinpointed what debts you owe, what's next? It's time to pay them off. Here are four steps you can take to make that happen:\n1.  Create a list of all your debts. This includes credit cards, student loans, personal loans and car loans. With each debt, be sure to highlight who you owe, the amount you owe, the interest rate and the minimum monthly payment.\n2.  Prioritize your debts. As you're reviewing the list of debts, consider paying off the highest-interest debt before any other debt.\n3.  Set up a budget. To put together a budget, go over your monthly income and expenses, then match them with your financial goals (like paying off your debts within a year, for example). Once your budget is in place, stick to it by closely monitoring your income and expenses. Don't be afraid to adjust your budget if it isn't working for you, or you find it impossible to stick to.\n4.  Pick a payoff method. There are two common methods to choose from: The debt avalanche method wipes out the highest-interest debt first, then the next-highest-interest debt and so on, and the debt snowball method focuses on the smallest debt first before moving on to other debt. These methods are particularly helpful with credit card debt, when it may be difficult to know where to start. Because paying off a mortgage in a year or even five is probably unlikely, you can limit your payoff strategy to debts you can reasonably expect to pay off over a shorter time period. END
 TITLE: How Do I Find Out What Debts I Owe? CONTENT: What to Do if Your Debt Is Already in Collections\n-------------------------------------------------\nAs you go over your accounts, you may find debt that is in collections. If this is the case, don't ignore it—pretending the debt doesn't exist won't make it disappear. Tackling it as soon as possible will eventually put an end to the collections calls, and quell those worries about the money you owe.\nOther potential action you can take once your debt is in collections includes:\n*   **Requesting that the debt collector stop contacting you.** If you make this request in writing, a debt collector must cut off contact in most cases.\n*   **Negotiating what you owe.** A debt collector may be willing to settle for a lump-sum amount that's less than the amount due or may be open to a payment plan.\n*   **Seeking assistance from a nonprofit credit counseling service.** A credit counselor may be able to develop a plan for paying off debt that's in collections and also come up with a household budget for you that prevents you from falling behind on more debt.\n*   **Hiring an attorney.** When the situation becomes extremely stressful—the debt collector threatens to take you to court, for instance—it may be time to seek legal help. END
 TITLE: How to Pay Off Debt in Retirement CONTENT: You can get out of debt by following these steps and holding yourself accountable.\n*   Know what you owe\n*   Create a budget and earn extra money if necessary\n*   Decide on a debt repayment strategy\n*   Get help through credit counseling if necessary\nRead on to get started on the path to debt repayment.\nCalculate Your Total Debt\n-------------------------\nStart by getting a clear understanding of how much debt you have. Review all your accounts and add up any balances to calculate your total debt. This might include:\n*   Mortgage loan\n*   Auto loan\n*   Personal loans\n*   Home equity loans or lines of credit\n*   Credit cards\nPaying down your highest-interest debt first will reduce the amount you spend on interest. For example, if you have a credit card balance with an 18.99% annual percentage rate (APR) and a car loan with a 3% APR, paying off the credit card should be your priority. This way you can save more money to put toward your other debts. END
 TITLE: How to Pay Off Debt in Retirement CONTENT: Create a Budget\n---------------\nYour income and expenses may change significantly in retirement. Creating a budget for retirement can help you better manage your money once you're no longer bringing home a paycheck.\nTo make a budget, add up all your sources of income for the month. Then subtract your fixed monthly expenses—things you must pay every month, such as a mortgage, insurance premiums or a car payment. Finally, estimate your discretionary spending—expenses that vary each month, such as groceries or dining out.\nNext, look for places to cut spending so you can pay down debt faster. Could you eat out less often? Stop buying new clothes? Shop around for insurance to lower your premiums? Taking steps to reduce spending in your budget categories gives you more money to put toward paying down your debt.\nAlso look for ways to bring in more money, such as:\n*   **Freelance or consulting work**: Offer to consult for former employers or similar businesses, or seek freelance work on sites such as Fiverr, Upwork and Freelancer.com.\n*   **Teaching**: Do you have a skill people will pay to learn? Charge for music or art lessons, for example, or tutor local students.\n*   **Driving for a rideshare service**: If you like driving and meeting people, driving for Uber or Lyft could be both fun and lucrative.\n*   **Selling products**: You may be downsizing anyway—why not make money selling your castoff furniture, clothing, books and other items on eBay or Craigslist? You could also buy and resell new items or sell crafts on Etsy or at local craft fairs. END
 TITLE: How to Pay Off Debt in Retirement CONTENT: Review Debt Pay-Off Options\n---------------------------\nOnce you've calculated how much you owe, you can decide on a method to attack your debts. Two strategic approaches to paying off debt are the avalanche method and the snowball method. With the debt avalanche plan, you make minimum monthly payments on all debts except the one with the highest interest rate. Each month, pay as much as you can toward that debt until it's paid off. Then focus on the debt with the second-highest interest rate, and so on.\nThe debt snowball plan prioritizes the debt with the smallest balance. Make the minimum monthly payments on all other debts, and put as much as possible toward your smallest debt until it's gone. Then move to the debt with the second-smallest balance, and so on.\nThe avalanche plan typically saves you more money on interest, but the snowball plan gets faster results, which can motivate you to keep paying down your debt.\nHere are two other ways to pay off debt. END
 TITLE: How to Pay Off Debt in Retirement CONTENT: Get Help Through Credit Counseling\n----------------------------------\nWhat if you've considered all your options and still aren't sure how to get out of debt? Nonprofit credit counseling agencies offer free or low-cost services from certified counselors who can help you create a budget and develop a plan to pay down debt. They can even negotiate with creditors on your behalf to reduce interest rates or waive fees as part of a debt management plan.\nTo find a reputable credit counselor, look for one that belongs to a certification organization such as the National Foundation for Credit Counseling or Financial Counseling Association of America, or check out the U.S. Department of Justice's list of approved credit counselors by state. END
 TITLE: How to Pay Off Debt in Retirement CONTENT: Pay Off Debt for Peace of Mind\n------------------------------\nPaying off debt before retirement can ease your mind—and may also improve your credit score. As you pay down debt, consider free credit monitoring from Experian to track your progress. Once your credit score is where you want it, keep it in shape by using your new budget to manage spending and keep debt to a minimum. END
 TITLE: How to Pay Down Credit Cards on a Tight Budget CONTENT: Strategies for Paying Off Your Debt\n-----------------------------------\nFinally, it's time to start making serious progress on your debt. Consider these potential strategies:\n*   **Debt avalanche** **method**: If you carry balances on multiple credit cards, find out the interest rate for each card and make bigger payments to the account with the highest rate first. Make sure to pay at least the minimum due on all your accounts to avoid late payments. Once the highest-balance card is paid off, you can move on to the card with the next-highest interest rate and repeat the process. Doing this can lead to substantial interest savings.\n*   **Debt snowball** **method**: Perhaps your balances with the highest interest rates are also the largest. It could take a long time to make what feels like real progress on your debt when you're paying only a little extra per month. That's where the debt snowball comes in: Using this method, you'll pay off your smallest balances first, rather than the ones with the highest rates. You won't save as much money on interest (though the difference could be minimal), but you may feel more motivated as you see your individual debts disappear.\n*   **Debt management plan**: As you plan to pay off debt, it's a smart idea to set up a free consultation with a certified credit counselor at a reputable nonprofit organization. A credit counselor will look at your debt and budget picture and suggest strategies that may help you. One of these strategies is a debt management plan, under which the credit counselor will negotiate with your creditors to potentially get you a lower interest rate or monthly payment. You'll pay the credit counseling agency each month, and the agency will pay your creditors. The plan comes with a fee, and you'll have to close the credit cards included in the plan, so it may not be best for everyone.\nKeep Track of Progress and Stay Motivated\n-----------------------------------------\nAs with any goal, keeping track of your progress is key to understanding where you stand in the process and how much further you have to go. You might use a spreadsheet or keep a note on your phone to track the following for each credit card account:\n*   Your remaining account balance\n*   Payment due dates\n*   Payments you've made\n*   Your interest rate\n*   Annual fees\nSeeing this information in one place for all your accounts will help you understand which debt to tackle first. It will also help you see your progress over time, which can help you stay enthusiastic on what might be a long journey.\nIf you have multiple cards, make sure to pay close attention to the due dates so you avoid missing any payments. Payment history is an important factor in your credit scores, and even one late or missed payment can cause them to drop.\nTo get a clear view of all your debt, regularly monitor your credit report and credit scores to see your up-to-date account information as creditors report it. You'll also be able to see if your credit scores change over time and track your debt paydown progress.  \nLearn How to Use Credit Responsibly in the Future\n-------------------------------------------------\nThe journey isn't over once your debt is gone. After you've accomplished that, your new goal will be to prevent debt from accumulating again. But since you have more tools and a greater understanding of debt to draw from, you're more likely to use credit cards responsibly. Here's how:\n*   Check your credit report regularly, even when you're debt-free. With an improved credit score, it becomes vitally important to protect it from issues like inaccurately reported payments or identity theft. You can ensure you're safe from these concerns by keeping an eye on the accounts listed in your credit report.\n*   Avoid relying on your credit cards for nonessential purchases. Make sure you can pay off whatever you spend on your cards every month to avoid paying interest charges.\n*   Prioritize building an emergency fund, which is an account with cash you've saved to cover unexpected expenses—so you don't have to rely on credit cards. Experts recommend you have at least three to six months' worth of expenses set aside to cover unforeseen financial needs, but even one month's savings is a good start.\nUsing Credit After Paying Off Debt\n----------------------------------\nIt's important to remember that once you're out of credit card debt, you can go back to using your credit cards—but with caution. Using a credit card for purchases can have many benefits, including travel rewards and purchase protection.\nAs long as you bring your balance back to zero every month, credit cards can offer plenty of savings and perks. Let your experience paying off credit card balances remind you of how hard you worked to be debt-free, and motivate you to stay that way. END
 TITLE: How to Pay Down Credit Cards on a Tight Budget CONTENT: Keep Track of Progress and Stay Motivated\n-----------------------------------------\nAs with any goal, keeping track of your progress is key to understanding where you stand in the process and how much further you have to go. You might use a spreadsheet or keep a note on your phone to track the following for each credit card account:\n*   Your remaining account balance\n*   Payment due dates\n*   Payments you've made\n*   Your interest rate\n*   Annual fees\nSeeing this information in one place for all your accounts will help you understand which debt to tackle first. It will also help you see your progress over time, which can help you stay enthusiastic on what might be a long journey.\nIf you have multiple cards, make sure to pay close attention to the due dates so you avoid missing any payments. Payment history is an important factor in your credit scores, and even one late or missed payment can cause them to drop.\nTo get a clear view of all your debt, regularly monitor your credit report and credit scores to see your up-to-date account information as creditors report it. You'll also be able to see if your credit scores change over time and track your debt paydown progress. END
 TITLE: How to Pay Down Credit Cards on a Tight Budget CONTENT: Learn How to Use Credit Responsibly in the Future\n-------------------------------------------------\nThe journey isn't over once your debt is gone. After you've accomplished that, your new goal will be to prevent debt from accumulating again. But since you have more tools and a greater understanding of debt to draw from, you're more likely to use credit cards responsibly. Here's how:\n*   Check your credit report regularly, even when you're debt-free. With an improved credit score, it becomes vitally important to protect it from issues like inaccurately reported payments or identity theft. You can ensure you're safe from these concerns by keeping an eye on the accounts listed in your credit report.\n*   Avoid relying on your credit cards for nonessential purchases. Make sure you can pay off whatever you spend on your cards every month to avoid paying interest charges.\n*   Prioritize building an emergency fund, which is an account with cash you've saved to cover unexpected expenses—so you don't have to rely on credit cards. Experts recommend you have at least three to six months' worth of expenses set aside to cover unforeseen financial needs, but even one month's savings is a good start. END
 TITLE: How to Pay Down Credit Cards on a Tight Budget CONTENT: Using Credit After Paying Off Debt\n----------------------------------\nIt's important to remember that once you're out of credit card debt, you can go back to using your credit cards—but with caution. Using a credit card for purchases can have many benefits, including travel rewards and purchase protection.\nAs long as you bring your balance back to zero every month, credit cards can offer plenty of savings and perks. Let your experience paying off credit card balances remind you of how hard you worked to be debt-free, and motivate you to stay that way. END
 TITLE: How to Pay Off Credit Card Debt When You’re Short on Cash CONTENT: Create a Budget and Stick to It\n-------------------------------\nA budget can give you helpful structure when you're ready to change your spending habits and eliminate credit card debt. It won't do you much good unless you follow the guidelines you've set for yourself, though.\nIf you don't already have a budget, creating one can provide clarity where you previously might have had none. Your first step in making a budget will be to view your expenses for the previous month (or several months) to see if you can spot any patterns. One look at your expenses might show you that it's time to cut back on services you no longer use, or that it's possible to streamline grocery shopping trips so you spend less on meals.\nOnce you understand your expenses, it's time to pick a budgeting strategy that appeals to you. If you're organized and love a good spreadsheet, a zero-based budget that you track closely might motivate you the most. On the other hand, if budgeting every penny that comes in and goes out feels unsustainable to you, you could try budgeting using multiple accounts instead. This is a more hands-off approach that has you split your income into various deposit accounts that have their own specific purposes.\nIn any case, following a spending plan that helps you determine where to allocate your money will be helpful. Experts often recommend the 50\/30\/20 method, which encourages you to spend 50% or less of after-tax income on essentials such as housing and food, 30% or less on items you want but don't need, and 20% or more on savings goals such as retirement and paying off debt. That may not be realistic right now, but these are guidelines to aim for. END
 TITLE: How to Pay Off Credit Card Debt When You’re Short on Cash CONTENT: Secure an Additional Source of Income\n-------------------------------------\nIf you're already on a barebones spending plan, or you'd rather earn more than spend less, look for ways to make more money you can use to pay down debt. For instance, you might sell items you don't want or need anymore, which could secure you a quick infusion of cash. Renting out an extra room, your car or your parking space when you're not using them via platforms like Airbnb, Turo and JustPark, can also be lucrative.\nOr make extra money from home by tutoring online, freelancing on the side or user-testing digital products on sites like UserTesting.com. You can also take on a part-time job, or work at your own pace with a side gig like shopping for groceries on Instacart or delivering food on DoorDash or Postmates. Do the math on how much extra you need to earn in order to start paying down your debt; taking on too much work on top of your current commitments could lead to burnout. Another option is to ask for a raise at work, once you've researched the market in your industry and you're willing to demonstrate how you've brought value to the company. END
 TITLE: How to Pay Off Credit Card Debt When You’re Short on Cash CONTENT: Consider Nonprofit Credit Counseling and Financial Assistance\n-------------------------------------------------------------\nThere are many ways to get help developing a credit card payoff strategy. With assistance from reputable financial experts, you might be able to identify your best budgeting method, learn about how to negotiate with creditors or apply for economic hardship programs to lower some of your bills.\nA good place to start is a nonprofit credit counseling agency. These organizations offer free initial consultations to anyone who needs basic help budgeting or exploring debt reduction options. They can help you view your situation holistically alongside other debt you may have, such as student loans or a mortgage. The counseling agency could also get you on a debt management plan, which is a paid service that aims to reduce your credit card debt. Debt management plans aren't right for everyone, though—more on that later. Find a local credit counselor through a national network like the National Foundation for Credit Counseling.\nIf you find that paying off debt is hard because you struggle to even pay your monthly bills like rent and utilities, financial assistance is available through local, state and national organizations. For example, 211 is a nationwide service supported by United Way that connects people experiencing financial difficulties with local resources. Call 211 from any phone to be referred to the right help for you, whether that's guidance signing up for federal benefit programs or finding rental assistance. Getting the benefits you deserve can give you the breathing room to cut down on debt that's overwhelming you. END
 TITLE: How to Pay Off Credit Card Debt When You’re Short on Cash CONTENT: Look for Debt Relief\n--------------------\nWhether you work with a credit counselor or on your own, you have several options for eliminating debt, known as debt relief:\n*   **Apply for a debt consolidation loan.** Debt consolidation allows you to convert multiple debts, commonly several credit card balances, into a single loan. That can make repayment simpler, and can help you budget since you'll be required to make a fixed payment toward the loan each month. A debt consolidation loan is best for those with good or excellent credit scores who can qualify for the lowest available interest rates.\n*   **Use a balance transfer credit card.** Another option for those with good credit is to apply for a credit card that offers an introductory 0% APR period on transferred balances, known as a balance transfer card. You'll need to make a plan to pay off your debt before the zero-interest period ends and the new (higher) interest rate kicks in, but if you do, you'll potentially save a substantial amount in interest. One caveat: Balance transfer cards often charge a balance transfer fee, which typically comes out to about 3% to 5% of the transferred amount. This will add to your debt load, but with the savings on interest, you're still likely to come out ahead if you keep up with your payments.\n*   **Opt for the snowball or avalanche methods.** You can also take the reins on your own and pay down multiple credit card balances with specific strategies. The most common are the debt snowball and debt avalanche methods. You'll use extra money to pay more than the minimum monthly payment required on one debt until it's gone, then apply the monthly payment from that debt to the next one. Using the debt snowball, you'll pay off the smallest balances first; you won't save the most in interest, but you'll collect wins faster. Using the debt avalanche, you'll pay off the balances that carry the highest interest rates first.\n*   **Participate in a debt management plan.** Nonprofit credit counselors offer these plans, in which a counselor negotiates with your creditors on your behalf to lower interest rates or fees, or potentially even your monthly payments. You'll make one monthly payment to the credit counseling agency, and the agency will pay your creditors, simplifying your bills. You'll have to close the credit card accounts included in the plan, which can affect your credit scores, and you'll pay a setup fee and monthly fee to participate. Consider it if you aren't concerned about losing access to your credit cards during the process, the fee is manageable for you, and you're unsure whether you'd get debt-free otherwise. END
 TITLE: How to Pay Off Credit Card Debt When You’re Short on Cash CONTENT: Understand How to Use Credit Responsibly\n----------------------------------------\nOnce your debt is gone, it's just as important to maintain strong habits to avoid accumulating debt again. You don't need to swear off credit cards entirely, as long as you're committed to using credit responsibly; in fact, regularly making purchases using a credit card and paying them off right away is one of the tried-and-true methods for building a good credit score.\nOnce you're free of credit card debt, make sure to stick to the budget you created. Once you're ready, and you're confident you can keep your debt under control, you can start using credit cards again. If you do use a card to finance something, make a plan to pay it off within a reasonable amount of time. Credit cards should be a tool that you use intentionally and wisely.\nIt's also crucial to monitor your credit score and your credit report, which includes the information that contributes to your score. Regularly checking your credit lets you notice any dips to your score, which could potentially be a result of a missed or late bill payment or an increase in your account balance. Understanding the elements that contribute to good credit will reinforce the importance of sticking to those habits. END
 TITLE: How to Pay Off Credit Card Debt When You’re Short on Cash CONTENT: The Importance of Debt Reduction\n--------------------------------\nEven with little or no extra money to spare, paying off credit card debt is a worthy goal. With less debt, you'll have a better shot at achieving other milestones that matter to you, like buying a house.\nEliminating debt takes hard work, patience and careful strategizing, especially when money is tight. Choose the method that best fits your circumstances and stay positive, knowing that with time and effort debt freedom will come. END
 TITLE: How to Pay Off 20,000 in Credit Card Debt CONTENT: Make a Plan to Tackle $20K in Credit Card Debt\n----------------------------------------------\nThere are several ways you can approach your credit card debt, and they all might play a role in your plan of attack. Before you start taking action, though, your first steps should be to assess the situation and understand your options:\n*   **Write out all of your debt.** If you have more than one credit card, write out the balance and interest rate for each one. You may also want to include the credit limit, so you know which cards are closer to being maxed out.\n*   **Create or reevaluate your budget.** Not knowing where your money is going every month can not only lead to overspending but also make it difficult to pay off the debt you've accumulated. If you haven't made a budget before, take some time to write out your income and expenses over the past few months, then categorize each expense so you get an idea of how you're spending your money. This can help you determine where you can reasonably cut back to put more cash toward your debt. If you already have a budget in place, consider reevaluating it to see if you can optimize your money management.\n*   **Set concrete goals.** With $20,000 or more in debt, it can be difficult to set a timeline for when you'll be debt-free. Still, it's still important to set concrete goals for yourself. For example, you can set short-term goals for paying off certain balances or simply for how much you want to put toward your credit cards every month in addition to your minimum payments. Meeting those goals will encourage you to keep at it.\n*   **Research different methods.** There are a lot of different strategies you can take to address your debt, many of which we'll cover in a minute. Not all of them are best suited for everyone, though, so take your time to research your options and find the best approach for your situation. Ultimately, you might incorporate several of the following strategies into your plan. When you're dealing with a large amount of debt, a more all-encompassing approach is often wise.\n*   **Develop your \"why\".** Even if you're feeling motivated right now to pay off your debt, it can be easy to lose that motivation over time, especially with a large balance. One way to maintain that motivation is to think about why you want to be debt-free. You may simply be seeking to get your head above water financially, or you might have a specific goal in mind, such as saving for a down payment on a house. Whatever your reason, putting it in writing can encourage you to stick to your plan.\n*   **Consider a moratorium on credit card spending.** If you're charging purchases to your credit cards while trying to pay them down, it can feel like you're taking two steps forward and one step back. Consider switching to cash or your debit card, so you can avoid further overspending and get out of debt as quickly as possible. Of course, this is only possible if your budget allows it, so you might start by simply taking steps to reduce how much you add to your debt every month. END
 TITLE: How to Pay Off 20,000 in Credit Card Debt CONTENT: Reduce Your Interest Rates\n--------------------------\nOne of the things that makes it tough to escape from credit card debt is continually accruing interest on your existing balances. That's why it's important to look for ways you can cut your interest rates and slow that buildup. Not only will this save you money, but it will also shorten the amount of time it'll take to pay off your debt in full.\nHere are a few different ways you can get lower interest rates on your credit cards. END
 TITLE: How to Pay Off 20,000 in Credit Card Debt CONTENT: Reduce Your Bills and Cut Down on Spending\n------------------------------------------\nWith a budget in place, you'll be equipped to consider areas where you can cut expenses back and reallocate that money toward your debt.\nStart by looking at your recurring bills, which you may be able to cut without consistent effort. For example, Experian's Bill Negotiator service can help by connecting with your service accounts or reviewing a recent bill and negotiating with your providers for a lower rate.\nYou may also be able to negotiate certain utility bills, especially if there are multiple providers in your area.\nIn addition to looking at your recurring expenses, take some time to also cut back on your discretionary spending. This may include spending less money on eating out and entertainment, cutting subscriptions you don't use very often or even sharing certain subscriptions and other costs with family members to cut how much you pay each month.\nTo get an idea of what's normal spending, you can review the average household expenses from the Bureau of Labor Statistics. It's important to note, however, that each household is different, and only you know how to appropriately spend less and save more given your circumstances.\nSource: Bureau of Labor Statistics, Consumer Expenditures 2019 END
 TITLE: How to Pay Off 20,000 in Credit Card Debt CONTENT: Utilize Debt Repayment Strategies\n---------------------------------\nIn addition to other options, you may choose to employ a specific debt repayment strategy to pay down your credit card debt more efficiently. Here are three to consider:\n*   **Debt avalanche**: With the debt avalanche approach, you make just the minimum payment on all of your credit cards except for the one with the highest interest rate. With that one, you'll apply extra payments until it's paid in full. Then, take what you were paying toward that account and apply it to the one with the next-highest interest rate (on top of its minimum payment). You'll keep doing this until you've paid off all of your balances.\n*   **Debt snowball**: The debt snowball method is similar to the debt avalanche method, but instead of focusing on the accounts with the highest interest rates, you'll target the accounts with the lowest balances.\n*   **Debt snowflake**: The debt snowflake strategy is one you can use on its own or in addition to the debt avalanche or snowball methods. With this approach, you'll take small daily savings you gain and put those toward your monthly payments. Get a coupon for $2 off a grocery item? Put that $2 toward your debt. Got some extra belongings you no longer need? Run a yard sale and use the proceeds to pay down your debt.\nIf you're trying to decide between the debt avalanche and snowball methods, here's how to make the right choice for you: In general, the debt avalanche method can save you more money, but it may have you focusing on large balances first, which can take more time to pay down.\nIn contrast, the debt snowball approach may not save you the most money, but it can give you wins early on as you pay off smaller balances. END
 TITLE: How to Pay Off 20,000 in Credit Card Debt CONTENT: How to Get Additional Help With Your Debt\n-----------------------------------------\nIf your credit is in poor shape and your financial situation doesn't allow for larger payments, you may consider getting help through credit counseling. Credit counselors can provide expert advice and personalized guidance for your specific circumstances at no cost.\nIf the situation calls for it, they can also set you up on a debt management plan (DMP). These plans, which typically last three to five years, involve you making one monthly payment to the credit counseling agency, which it distributes to your creditors. They may also be able to negotiate lower interest rates and monthly payments on your behalf.\nDMPs typically require a modest upfront and monthly fee, and you may need to close your credit cards. But if you're having a hard time paying back your debt on your own, a DMP is a good alternative to debt settlement and bankruptcy.\nIf the cost of your other bills is making it harder to pay down your debts, financial assistance is out there. Assistance from charitable and other organizations can take some of the financial stress off making ends meet so you're better able to take care of your debt. END
 TITLE: How to Pay Off 20,000 in Credit Card Debt CONTENT: Make a Habit of Responsible Credit Use\n--------------------------------------\nIn many cases, credit card debt comes from factors outside of your control, such as medical bills or divorce. But regardless of how your debt was accumulated, there are some steps you can take to develop good credit habits going forward.\nResponsible credit card use includes many things, such as:\n*   Paying your bill on time and in full every month\n*   Avoiding spending more than you can afford\n*   Keeping your balances low relative to your credit limits\n*   Avoiding frequent new credit card applications\n*   Keeping old accounts open, even if you don't use them regularly\nIt's also important to check your credit score and credit report regularly so you can spot potential problems before they wreak havoc on your credit score. This can include things like missed payments but also potential fraud and inaccurately reported information. END
 TITLE: How to Pay Off 20,000 in Credit Card Debt CONTENT: Monitor Your Credit Going Forward\n---------------------------------\nBoth now and in the future, make it a priority to monitor your credit card balances regularly. You don't have to check every day or even every week, but it's a good idea to stay on top of it. In addition, be sure to keep an eye on the information that gets reported to the credit reporting agencies.\nWith Experian's free credit monitoring service, you'll get access to your FICO® Score☉ powered by Experian data, as well as your Experian credit report, which is updated every 30 days. You'll also get real-time updates every time a change occurs, such as a new credit inquiry, missed payment or even a change in your credit score.\nAs you stay on top of your credit, you'll have a better chance of avoiding another situation where you're struggling to pay down a mountain of debt. Improving your credit scores can also help you qualify for better interest rates on loans and credit cards, as well as lower rates on auto, homeowners and even life insurance policies (in most states). END
 TITLE: Should I Use My Tax Refund to Pay Off Debt? CONTENT: What Are the Benefits of Using Your Tax Refund to Pay Off Debt?\n---------------------------------------------------------------\nAlthough there are differences between paying off credit cards and paying off loans, here are four good reasons to consider using your tax refund to pay off debt:\n*   **You'll save money.** Credit card interest can be high. If your credit card has an annual percentage rate (APR) of 25%, paying off $2,000 in debt now will save you roughly $500 in interest over the next year. Paying off your car loan or making an extra payment may save you less in interest; these types of loans typically have lower interest rates, and the amount of interest you owe tends to dwindle as the loan nears payoff. Still, money saved is money saved.\n*   **You'll reduce your monthly expenses.** Lower credit card balances mean lower minimum monthly payments. Paying off a card balance or loan entirely translates into one less bill to pay, month after month. That's money you can put toward savings or other needs. Don't have enough to pay off your whole loan or card balance? Set the money aside and use it to make or supplement your monthly payments. That'll increase your chances of making all your monthly payments on time, which is a win for your credit score.\n*   **You may increase your available credit.** Lowering your credit card balances will raise the amount of credit you have in reserve. And while it's better to have some cash set aside in an emergency fund for unexpected expenses, available credit can help you in a way that a maxed-out credit line cannot.\n*   **You could improve your credit score.** We'll cover more specifics on this in a moment, but in a nutshell, paying down revolving debt such as credit cards helps your credit utilization ratio, which can boost your credit score.\nThe main downside to using your tax refund to pay off debt is that you can't then use it for something else that needs priority. For example, if your roof is leaking and about to cave in, roof repairs might be worth considering instead. The same goes for necessary medical procedures, major car repairs, replacing the computer you use to run your business—important major purchases. Even in these cases, you might consider paying down your credit card balance, then using your card to pay for the purchase. That way, you can take advantage of purchase protections and rewards that come with your card. END
 TITLE: Should I Use My Tax Refund to Pay Off Debt? CONTENT: How Paying Off Debt Affects Your Credit\n---------------------------------------\nGenerally speaking, paying off debt helps your credit. At the most basic level, it marks the successful repayment of your debt—one of the very things your credit score is meant to track. But the way you use your tax refund to repay your debt can make a difference in how your credit is affected. Consider these three scenarios:\n*   **Bringing or keeping an account current**: If you're late making payments on a credit card or loan account, or you are about to fall behind, your tax refund money could save the day. While you can't erase late payments that have already been made from your credit report—or reverse the damage they've done to your credit score—you can avoid further trouble by bringing your account current. Any leftover money can help you cover timely payments going forward.\n*   **Paying off an installment loan**: Suppose your tax refund enabled you to pay off the rest of your car loan, personal loan or mortgage. Would that help your credit? Only somewhat. While successfully paying off an installment loan is a good thing, doing so means your loan account will drop off of your credit report. This may cause you to have a less diverse credit mix or lower the average age of your accounts, which can lower your credit score a bit. This doesn't make paying off your loan a bad idea—after all, that's the idea of a loan. But if you're looking for a way to boost your credit score quickly, this may not be the way.\n*   **Dissolving high-interest credit card debt**: The fastest bump to your credit score would probably come from paying down or paying off your credit card balances. Paying down card balances helps reduce your credit utilization rate—which can raise your credit score. Spelled out: If your total credit card limits add up to $10,000 and you have a current balance of $2,000, you are utilizing 20% of your available credit. Pay $1,500 toward your balance, and your credit utilization becomes a score-boosting 5%.\nIf you're thinking about paying down credit card debt to improve your credit score, you may want to sign up for free credit monitoring. When you use it to check your credit report and score, you'll see suggestions for improving your score—for instance, by paying down your total outstanding debt or using fewer card accounts. This information can help guide you in deciding how to deploy your funds. One approach is to pay off your smallest card balance first, so you can reduce the number of accounts you're utilizing. Or you might instead pay off the card with the highest APR first, to save the most on interest. END
 TITLE: Should I Use My Tax Refund to Pay Off Debt? CONTENT: Other Ways to Use Your Tax Refund\n---------------------------------\nPaying off debt isn't the only smart financial move you can make with your tax refund. Taxpayers who don't have an emergency fund—or whose emergency funds have taken a hit during the past year during the pandemic—may want to deposit their refund checks directly into savings. A high-yield savings account may earn you a bit more interest than basic savings at a regular bank.\nContributing to your retirement account is another option. You can add up to $6,000 to a traditional or Roth IRA in 2021—$7,000 if you are 55 or older. Don't want to tie your money up until retirement? You can also start or contribute to an investment account. END
 TITLE: Should I Use My Tax Refund to Pay Off Debt? CONTENT: Using Your Refund to Recover\n----------------------------\nThese are solid financial choices in any year. But after a year that saw more than its share of financial crises, shoring up your savings, contributing to retirement or investing all have the potential to help you rebuild and recover. Using your tax refund to pay off debt is also an excellent option, especially if you stand to save significant money on interest, your credit needs a bit of a boost, or you want the psychological relief of lowering your debt and reducing your monthly payments. Your tax refund money may not buy you happiness, but it might be able to alleviate a little stress. END
 TITLE: Can You Go to Jail for Debt? CONTENT: What Kinds of Debt Can You Go to Jail For?\n------------------------------------------\nThere are a couple of instances where it may be possible to serve time as a result of not paying your debts, such as if you've failed to pay your federal taxes or make child support payments.\nDeliberately not paying or underpaying federal taxes can lead to a prison sentence, but only if you've been charged with and convicted of a tax-related crime such as filing a fraudulent tax return or not filing a tax return at all. If you do file a return but aren't able to pay your taxes, the federal government won't throw you in prison.\nFailure to pay child support also can put you behind bars. Under federal law, you could be sentenced to as much as six months or two years in prison for dodging child support payments, depending on the circumstances. In addition, state laws may let a judge send someone to jail for disobeying a court order to pay child support. END
 TITLE: Can You Go to Jail for Debt? CONTENT: What Is the Statute of Limitations on Debt?\n-------------------------------------------\nThe statute of limitations on debt collection is the limited period of time debt collectors and creditors are given to sue you over past-due debt.\nThe federal Fair Debt Collection Practices Act governs the statute of limitations for debt; state laws also may affect this. Therefore, the statute of limitations on collecting a debt varies depending on where you live. Generally, the statute of limitations for debt runs three to six years.\nIn terms of your credit scores, the statute of limitations expiring on debt doesn't mean the unpaid amount won't show up on your credit report. That's because the debt itself hasn't expired and its presence on your credit report can continue to affect your credit score. Negative information like an unpaid debt can remain on your credit report for up to seven years, regardless of the debt's statute of limitations. END
 TITLE: Can You Go to Jail for Debt? CONTENT: What Can and Can't Debt Collectors Do?\n--------------------------------------\nIt's smart to be equipped with knowledge about what debt collectors legally can and cannot do when they're seeking a debt payment from you.\nLegally, a debt collector can only contact you about household debts like credit card bills, auto loans, medical bills, student loans and mortgage payments. A debt collector can reach out to you by phone, email, text message or letter—and, starting in October 2021, via social media.\nWithin five days of initially contacting you, a debt collector must send you a notice outlining how much money you owe, the name of the creditor to whom the money is owed and what you can do if you believe you don't owe this debt.\nDebt collectors are prohibited from harassing you, lying to you or engaging in unfair practices. For instance, a debt collector can't threaten to harm you, falsely claim you'll be arrested or threaten to take your property.\nAlso, debt collectors can't contact you before 8 a.m. or after 9 p.m. unless you give them permission, can't reach out to you at work if you're unable to take calls there and can't contact you in most cases if you've asked them by letter to stop contacting you. In addition, a debt collector generally can't talk with anyone about your debt except you or your spouse. END
 TITLE: Can You Go to Jail for Debt? CONTENT: How to Get Out of Debt\n----------------------\nDealing with debt collectors can be frustrating. But you can avoid that frustration by focusing on getting out of debt. What are the best ways to do that? Here are five tips. END
 TITLE: Debt-Free Living: How to Get Out of Debt for Good CONTENT: There are many debt-reduction strategies to choose from, which might overwhelm you when you first make the decision to focus on eliminating debt. One way to start is to write down all your debts, including their current balances, interest rates and minimum monthly payments. That will give you clarity on which ones to tackle initially.\nThis, however, can be a hard step; seeing the amount of money you owe staring back at you may lead to shame or fear. But remember that there are many, many people who have the exact same goal as you, and who have gotten out of debt and stayed that way. You can do this.\nOnce you've created a list of your debts, take these steps:\n*   **Reduce interest rates where possible.** Start by limiting the amount you have to pay back by lowering interest rates. Call your credit card companies and ask for an interest rate reduction (which may be more likely if you are a longtime customer and don't have a history of late or missed payments). Consider refinancing car loans or high-interest private student loans if you meet the qualifications and stand to save money. Refinancing your mortgage may also be worthwhile if you're eligible for a lower rate that offsets closing costs.\n*   **Consider debt consolidation.** Depending on the type of debt you have and your credit score, consolidating debt might help lower interest rates and make paying off debt easier. Balance transfer credit cards give you an introductory period with low or 0% APR, if you have good or excellent credit, letting you pay off credit cards without accruing interest. If you have more than just credit card debt, such as personal loans, a debt consolidation loan could help you combine them into one monthly payment—ideally at a lower rate than you're currently paying.\n*   **Cut expenses, add income or both.** You'll typically need to free up at least a little extra money to make progress on your debt. Tax refunds, work bonuses, economic stimulus payments and other one-time windfalls can get you started. Or, find an extra $25 or $50 a month by cutting a subscription you don't use, taking on freelance or gig work, or limiting takeout meals to, say, once a month.\n*   **Utilize a specific paydown strategy.** Once you understand how much you owe, and you've taken steps to reduce interest rates if possible, choose a debt payoff method. You can pay off the most expensive debt first, meaning the one with the highest interest rate, using the debt avalanche method. This way will save you the most money, but it can also take a while. The debt snowball strategy, on the other hand, lets you pay off the smallest balance first, giving you a more immediate morale boost. END
 TITLE: Debt-Free Living: How to Get Out of Debt for Good CONTENT: Habits to Help Keep You out of Debt\n-----------------------------------\nPerhaps the most important step to take when paying off debt is to avoid adding to it, which means no longer relying on credit cards and skipping new applications for credit. Your goal should be to buy only things you can afford to pay for in cash, or at least by the end of the month when your credit card bill is due.\nHow do you transition to this mindset while paying off debt? Here are some tips:\n*   **Embrace budgeting.** Until now, making a budget might have been low on your priority list. But it's an essential step in making sure you don't overspend; in fact, trying to live within your means without a budget is often too difficult for the average consumer. A budget gives you guidelines to work within, and you can choose the strategy that works best for you. That could mean keeping track of every single purchase or setting up monthly automatic transfers to different savings accounts to meet your goals, then spending only whatever is left. There are many methods to choose from.\n*   **Get curious about your credit score.** Your credit score reflects how you're using and paying off credit. As you pay down debt, you may not always see an immediate boost to your score. But in the long run, the less credit you use compared with your credit limit, the better. Track your score for free using one of the many apps or services provided by banks, personal finance websites and credit card issuers. When you see your score increase over time, that might encourage you to avoid taking on more debt.\n*   **Reward yourself.** Changing money habits that you may have repeated for a long time is worth celebrating. When you create new routines like tracking your credit score, using credit cards more wisely, saving a little of each paycheck or sticking to your budget for a full month, give yourself a reward (that doesn't cost a lot). Keep track of your wins on a calendar or a notepad you see regularly. END
 TITLE: Debt-Free Living: How to Get Out of Debt for Good CONTENT: How to Get Help With Your Debt\n------------------------------\nThere is support available if you're unsure where to start or you get stuck along the way. It's important to make sure any financial assistance you receive is reliable and trustworthy, and use an extra layer of caution if you're considering paying for help to get out of debt. Here are some tips:\n*   **Consider nonprofit credit counseling.** A nonprofit credit counseling agency can help you develop a debt payoff strategy and a new budget. Depending on your situation, you may get all the assistance you need during a free, one-hour initial consultation. Search for a certified counselor through a membership organization like the National Foundation for Credit Counseling or through the U.S. Department of Justice's approved list of agencies (this list is targeted at consumers needing bankruptcy counseling, but anyone can refer to it). Your credit counselor can help determine whether you're a candidate for a debt management plan, in which you pay a monthly fee for help lowering fees or interest rates or streamlining debt payments. But it's up to you whether to participate.\n*   **Try to avoid debt settlement companies.** Unlike nonprofit credit counseling agencies, debt settlement companies are for-profit entities that claim they will substantially reduce the amount you owe—which, often, it's not possible to do. Debt settlement can also lead to high fees and damaged credit, since these companies typically direct you to stop paying creditors during the negotiation process. In general, it's best to avoid them.\n*   **Look into free local assistance.** In many states, the local consumer affairs or consumer protection agency can connect residents with free financial counseling, such as through a program like New York City's Financial Empowerment Centers. Search your state's consumer protection website or attorney general's website for resources. You can also reach out to your state social service agency or use Benefits.gov to determine whether you qualify for state or federal benefits. These can help you stay on your feet while you work to pay off debt. END
 TITLE: Debt-Free Living: How to Get Out of Debt for Good CONTENT: Rebuild Your Credit After Getting Out of Debt\n---------------------------------------------\nWhen you're working to bounce back from a poor credit score, all the positive credit habits you've been building as you get rid of debt will pay off.\nFor instance, paying down credit cards will lead to lower credit utilization, which accounts for 30% of your FICO® Score☉ . Making all your debt payments on time—which will be easier when you stick to a budget and limit the amount of new debt you take on—is an even more important step to take. That's because payment history is the biggest factor in your score.\nIt's also smart to keep old credit card accounts open, as long as they don't come with expensive annual fees, so you don't inadvertently shorten your average account age or lower the amount of overall credit available to you. Or take steps to repair your own credit by getting advice from a nonprofit credit counselor and regularly checking your credit report for errors that might affect your score.\nRebuilding credit is not a speedy process. Late and missed payments stay on your credit report for seven years, though their effect on your score will decrease over time. That means it's up to you to stay the course and keep the good habits going, even if you don't see an immediate positive impact. END
 TITLE: Debt-Free Living: How to Get Out of Debt for Good CONTENT: Living Debt-Free for the Long Term\n----------------------------------\nThere are countless benefits to a life without debt, besides saving money on interest and fees. Knowing you don't have to pay creditors any longer can give you space to dream and plan that may not have felt accessible before. The work to get out of debt—making a plan, getting support, regularly making extra payments and tracking your progress—is worth it, as long as you keep the end goal in mind. END
 TITLE: Should I Get a Balance Transfer Card or Debt Consolidation Loan? CONTENT: What Is a Balance Transfer?\n---------------------------\nA balance transfer generally refers to when existing debt is transferred to a credit card. You may be able to do this by moving a credit card balance from one card to another or by transferring money from your credit card to a bank account and then using the money to pay down debt.\nCredit card issuers often use promotional balance transfer offers to entice new cardholders, although you may also occasionally receive balance transfer offers on the cards you already have open.\nA balance transfer could help you save money if you receive a low promotional annual percentage rate (APR) on the amount transferred.\nOnce the 18-month promotional period ends, the standard variable APR of 13.99% to 23.99% can apply to the remaining balance. If you pay off the transferred balance during the promotional period, you won't be charged any interest on the debt. However, you will have to pay a balance transfer fee, which is 3% of the transferred balance or $5, whichever is greater.\nBalance transfer fees are common and are typically either 3% or 5% of the transferred balance, but there are cards on the market that carry smaller fees or don't charge any fee at all.\nReview the terms of the balance transfer offer carefully before opening or using a new card in order to avoid potential headaches. For example, the presence of a transferred balance may void your card's grace period. If the card doesn't also offer a promotional 0% APR offer on purchases, your purchases could accrue interest daily. Without a promotional purchase APR offer it's best to pay off the transferred balance before using the card for purchases. END
 TITLE: Should I Get a Balance Transfer Card or Debt Consolidation Loan? CONTENT: A debt consolidation loan is a loan that you take out with the purpose of paying down one or more of your other debts. In doing so, you can consolidate (or combine) multiple debts into one new account, decreasing how many monthly bills you have to manage.\nConsolidating debts can lead to savings if your new loan has a lower interest rate than your previous debts. And, your single monthly payment may be lower than the previous combined monthly payments—freeing up extra money each month.\nDebt consolidation loans are typically unsecured personal loans. You can also consolidate debts using different types of loans, including home equity loans and cash-out mortgage refinancing. Be warned, however, that defaulting on a secured loan can cause you to lose the collateral that backs it, such as your home. END
 TITLE: Should I Get a Balance Transfer Card or Debt Consolidation Loan? CONTENT: How to Decide Between a Balance Transfer or Debt Consolidation Loan\n-------------------------------------------------------------------\nIf you have debts with a medium to high interest rate (such as high single digits and above), balance transfer cards and debt consolidation loans could offer:\n*   A lower interest rate\n*   Lower monthly payments\n*   Fewer monthly bills\nBefore you proceed, go over the pros and cons that accompany balance transfer credit cards and debt consolidation loans. END
 TITLE: Should I Get a Balance Transfer Card or Debt Consolidation Loan? CONTENT: Alternatives to Balance Transfers and Debt Consolidation Loans\n--------------------------------------------------------------\nIn some cases, neither a balance transfer card nor a debt consolidation loan makes sense. For example, if you have poor credit, you might not qualify for good credit card or loan offers. Or, if you're in debt from overspending on credit cards, you may need to address your spending before focusing on paying off balances.\nHere are a few alternative options you may want to consider:\n*   **Debt management plans**: Credit counselors offer debt management plans (DMPs) to clients who are having trouble with unsecured accounts, such as credit cards, regardless of their credit scores. If you sign up for a DMP, the counselor can try to get fees waived and lower your interest rates or monthly payments. You'll then make one monthly payment to the counselor, who distributes the money to your credit card issuers. DMPs generally lead to paying off the included debts within three to five years, but you'll likely need to close your credit cards while you're on a DMP.\n*   **Budgeting**: Addressing overspending can help you reign in your bills and free up money to pay down debts. Creating a budget is often the first step. Then, you'll need to stick to the budget while looking for additional ways to make more money and spend less.\n*   **Contacting your creditors**: If you're having trouble affording your payments and are looking for a short-term solution because of a temporary setback, contact your creditors directly. They may have hardship programs available that allow you to temporarily lower or skip payments, especially if you contact them before missing payments.\n*   **Bankruptcy**: If you're overwhelmed by monthly bills, lowering your interest rate or monthly payment might not be enough of a solution. In some extreme cases, wiping out debt through bankruptcy is something to consider. Keep in mind, though, that bankruptcy has severe consequences on your credit and should be viewed only as a last-resort option. END
 TITLE: Should I Get a Balance Transfer Card or Debt Consolidation Loan? CONTENT: Compare Offers Before Opening a New Account\n-------------------------------------------\nThere are many balance transfer credit cards and debt consolidation loans available, and you'll want to compare your options and the offers to find which will be best.\nFor example, if you're choosing a balance transfer card, consider the card issuer, balance transfer fee, purchase APR offer, promotional term length and whether you'll want to keep the card after paying off the balance. The Experian CreditMatchTM credit card marketplace lists some of our partners' cards with balance transfer offers. Once logged in, you can also get personalized offers based on your credit profile.\nWith debt consolidation loans, you may want to look at the lenders' loan amounts, fees and interest rate ranges. Find a few top lenders, then submit soft credit prequalification applications to see your offers. The Experian CreditMatchTM tool can make this easy by analyzing your credit profile and providing you with loan offers. Your offers will be good for 30 days, giving you plenty of time to figure out which to choose. END
 TITLE: Should I Refinance or Consolidate My Student Loans? CONTENT: How Do Refinancing and Consolidation Work?\n------------------------------------------\nIf you're having trouble affording your student loan payments, loan refinancing and consolidation are two options you might be exploring. Both can simplify your loan repayment and reduce your payments, but they share few similarities beyond that.\nRefinancing replaces one or more existing loans with a new one through a private lender, while consolidation goes through a program with the federal government and is only available for federal student loans. Here's a quick summary of how they differ: END
 TITLE: Should I Refinance or Consolidate My Student Loans? CONTENT: Consolidating Federal Student Loans\n-----------------------------------\nThe Direct Loan Consolidation program through the U.S. Department of Education is only available for federal student loans. In contrast, you can refinance federal loans, private loans or even both together if you have a mix.\nWith the Direct Loan Consolidation program, you can replace one or more existing federal loans with a new one. Some of the benefits of consolidation include:\n*   Borrowers with loans from the Federal Family Education Loan (FFEL) program, parent PLUS loans and other loan programs can consolidate into direct loans, which can provide access to certain benefits that wouldn't otherwise be available, such as loan forgiveness programs and income-driven repayment plans.\n*   People with defaulted student loans can get them out of default through consolidation.\n*   Borrowers can extend their repayment term up to 30 years.\nBecause there's no credit check required, federal loan consolidation doesn't affect your credit score.\nKeep in mind, though, that there's no way to get a lower interest rate through the federal consolidation program. Instead, the federal government will take the weighted average interest rate across all of your federal student loans and round it up to the nearest one-eighth of a percent. If the interest rate on all your loans is the same, the best-case scenario is that the rate will stay roughly the same. END
 TITLE: Should I Refinance or Consolidate My Student Loans? CONTENT: Federal and Private Loan Refinancing\n------------------------------------\nYou can refinance both federal and private student loans with a private lender. Depending on the situation, here are some potential benefits:\n*   Borrowers with good credit may be able to get a lower interest rate.\n*   People who want flexibility can choose a shorter or longer repayment period.\n*   Parents who borrowed money to help their children get through school can transfer the debt to them after they graduate (as long as both parties agree).\nThere are a couple of caveats with refinancing, though. First, there's no guarantee that you'll be able to get better terms than what you have now. To get the best terms, you typically need a high credit score and income, though you may still see an improvement if your credit is simply better now than it was when you opened the accounts. You can get a creditworthy cosigner to apply with you, but that can be difficult.\nAlso, if you refinance federal loans, you'll lose access to loan forgiveness programs, income-driven repayment plans and generous deferment and forbearance options provided through the government. Private lenders may offer some similar benefits, but they're no guarantee. END
 TITLE: Should I Refinance or Consolidate My Student Loans? CONTENT: Is It a Good Idea to Refinance Federal Student Loans?\n-----------------------------------------------------\nPrivate student loans don't offer the same flexibility federal student loans do. Because you'll lose access to all of the benefits that come with federal loans, refinancing federal loans can be a big gamble.\nBut it could be worth refinancing if you have a strong income and job security and know you won't have to rely on federal loan benefits. Plus, if you have both federal and private loans, you could just refinance your private loans only. An honest evaluation of your whole financial picture will help you make the decision that's right for you. END
 TITLE: Should I Refinance or Consolidate My Student Loans? CONTENT: Final Considerations Before You Decide\n--------------------------------------\nThere are currently some special considerations to make before you refinance federal student loans.\nThe first is that federal student loan payments are paused until at least September 30, 2021. During that time, no interest will accrue and there's a moratorium on collection attempts for people in default. If you have eligible federal loans, refinancing now may not be in your best interest.\nSecond, the Biden administration is considering forgiving $10,000 or more in student loan debt for federal borrowers. While it's still unclear if and when this will happen, and what the eligibility requirements will be, the benefits of refinancing pale in comparison to that prospect.\nSo if you're thinking about refinancing, consider holding off until there's more clarity about the future of federal student loans. END
 TITLE: Should I Refinance or Consolidate My Student Loans? CONTENT: Build Credit Before You Refinance\n---------------------------------\nIf you end up deciding to refinance your private student loans or at least a portion of your federal student loans, it's important to make sure your credit is ready. Again, the best rates are reserved for people with high credit scores and incomes.\nCheck your credit score to see where it stands. If it needs some work before you apply, review your credit report to pinpoint areas you can address. That can include paying down credit card balances and taking other actions that can help improve your credit score.\nThis process can take time, but if it helps you score even a slightly lower interest rate, it could save you hundreds or even thousands of dollars, depending on how much you owe. As you make an effort to improve your scores, closely monitor it for changes to see how effective your actions have been. END
 TITLE: Step-by-Step Checklist to Getting a Consolidation Loan CONTENT: Understand How Consolidation Loans Work\n---------------------------------------\nThe concept is simple: You apply for a debt consolidation loan and use the money from the loan to pay off your other debts, often credit card accounts. Despite the name, consolidation loans don't require consolidating debt from multiple credit accounts. You can use them to pay off just one credit card. Some lenders will send the loan proceeds to your creditors directly; others send it to you, and you'll be responsible for paying off your creditors.\nYou'll pay off the loan in fixed monthly installments. If you do have debt from multiple sources, consolidation loans simplify repayment by giving you just one due date, payment amount and interest rate to keep track of.\nUse this step-by-step checklist to find the right consolidation loan and get approved. END
 TITLE: Step-by-Step Checklist to Getting a Consolidation Loan CONTENT: Decide if a Consolidation Loan Is Right for You\n-----------------------------------------------\nA debt consolidation loan might be right for you if:\n*   You have a lot of high-interest debt and are having trouble making the monthly payments.\n*   Your high-interest debt will take years to pay off. (If you could pay off your credit cards in 12 months or less, a balance transfer credit card offering an introductory 0% APR promotion could be a better choice.)\n*   You can get a loan at a lower interest rate than your current high-interest debt.\n*   Getting a loan will reduce your total monthly payment due to a lower interest rate, longer repayment term or both.\n*   You're committed to paying off the debt and reducing spending so you don't get into debt again.\n*   You can afford the monthly payments. Unlike credit cards, you can't pay less when money is tight.\n*   You have good credit. You typically need a FICO® Score☉ of 670 or higher to get favorable loan terms. You can get a debt consolidation loan with poor or fair credit, but it's likely to have a higher interest rate. END
 TITLE: Step-by-Step Checklist to Getting a Consolidation Loan CONTENT: Prepare to Apply for a Consolidation Loan\n-----------------------------------------\n*   Check your credit score to see if it's high enough to qualify for a debt consolidation loan.\n*   Review your credit report for inaccurate information; if necessary, file a dispute with the credit reporting agencies to have any inaccuracies removed.\n*   If your credit score is poor or fair, work on improving your credit before applying for a debt consolidation loan.\n*   Figure out how much money you need. This could be as simple as adding up the balances of credit card accounts you'd like to pay off at a lower rate.\n*   Review your budget to decide what monthly payment you can afford. END
 TITLE: Step-by-Step Checklist to Getting a Consolidation Loan CONTENT: Look for a Consolidation Loan\n-----------------------------\nDebt consolidation loans are simply personal loans used to pay off debt. Some lenders advertise them as \"debt consolidation loans,\" but you can also just look for \"personal loans.\"\n*   Start with the bank or credit union you already use and find out what options you may have there and at what interest rate. That shouldn't be the only place you look, however.\n*   Check with online lenders, which may offer cheaper options.\n*   Look for lenders that offer loan prequalification using a soft credit check. This allows you to compare interest rates without lowering your credit score the way a hard inquiry can.\n*   Use Experian CreditMatch™ to find loan offers from multiple lenders based on your credit profile and get prequalified.\n*   If you have fair credit, consider these lenders:\n    *   Upgrade\n    *   LendingPoint\n    *   Avant\n*   If you have good credit, check out:\n    *   Prosper\n    *   Payoff\n    *   SoFi END
 TITLE: Step-by-Step Checklist to Getting a Consolidation Loan CONTENT: Select the Right Consolidation Loan\n-----------------------------------\nWhen comparing loan offers, consider the following:\n*   Does the lender offer the loan amount you need? Some lenders have loan minimums; avoid borrowing more than necessary.\n*   Can you afford the monthly payments? A longer loan term can lower your monthly payments, but you'll ultimately pay more in interest than with a shorter term.\n*   Can you get prequalified and receive estimated loan amounts and interest rates?\n*   Is there an origination fee when you receive the loan?\n*   Is there a prepayment fee for paying off the loan early?\n*   Is the interest rate fixed or variable? Fixed-rate loans have the same monthly payment for the life of the loan. Variable rates often start lower than fixed rates, but if interest rates rise, your payments will rise too.\n*   Use our personal loan calculator to compare loan offers and see the total interest you'll pay. END
 TITLE: Step-by-Step Checklist to Getting a Consolidation Loan CONTENT: After Your Loan Is Approved\n---------------------------\n*   If the lender sends the loan money directly to your creditors, keep making minimum payments until you're sure the money has been applied to your balances.\n*   After you pay off your credit card, keep the account open and only use it for small purchases you pay off every month. This will help keep your credit utilization ratio low and can improve your credit score.\n*   Set up free credit monitoring to watch how paying down debt affects your credit score.\nWhat to Do if Your Loan Application Is Denied\n---------------------------------------------\n*   If you were denied despite relatively good credit, try applying for a smaller loan amount or with a lender whose credit requirements are more flexible.\n*   Use the debt avalanche or debt snowball method to pay off high-interest credit card balances. You may pay more interest than you would with a personal loan, but you'll have a plan you commit to to pay off your debt.\n*   Make a budget to get your spending under control.\n*   Consult a credit counseling agency to get advice and help paying down debt or possibly try using a debt management plan (DMP). END
 TITLE: What Can Increase Your Credit Card’s APR? CONTENT: How Does APR Differ for Loans and Credit Cards?\n-----------------------------------------------\nWith credit cards, the annual percentage rate is synonymous with the card's interest rate. It can help you understand how much interest you'll pay if you carry a balance or get a cash advance. However, it doesn't account for the card's fees or how long it takes you to repay a balance.\nIn contrast, an APR on a loan depends on its interest rate, repayment term and lender fees. Comparing APRs on loan offers can be helpful because a loan with a low interest rate might wind up costing you more overall if the lender charges high fees. Many loans carry fixed interest rates, meaning your interest rate and monthly payment stay the same for the lifetime of the loan.\nCredit cards typically have three variable APRs—one each for purchases, balance transfers and cash advances. The APRs you receive will depend on the card, a benchmark rate and your creditworthiness when you apply. Most credit card APRs are variable and can change over time. END
 TITLE: What Can Increase Your Credit Card’s APR? CONTENT: Your credit card's APRs can change for a variety of reasons. Some of these are completely out of your control, but others depend on how you use your credit card or manage your account.\n*   **The prime rate changes.** Credit cards' variable APRs are the sum of two rates: a base benchmark rate—often the prime rate—and a second rate that depends on your creditworthiness. When the benchmark rate changes, your card's APR will rise or fall as well, and the new APR can apply to your existing balance.\n*   **A promotional period ends.** Credit cards may offer low- or no-interest promotions. For example, you might get a balance transfer credit card that gives new cardholders an introductory 0% APR on balance transfers for the first 15 months. (There are also intro offers for 0% APR on purchases, and 0% APR on both balance transfers and purchases.) The APR changes to the standard APR and applies to the remaining balance once the promotional period ends. Missing a payment could also lead to the early termination of a promotional rate.\n*   **The card issuer changes your rate.** Credit card companies monitor your creditworthiness and how you're using the credit card. After your first year with the card, the issuer can increase your rate 45 days after sending you a notice—which can appear on your monthly statement. The increased APR will only apply to new transactions that occur 14 or more days after the issuer sends you the notice.\n*   **You're 60 days or more past due.** Card issuers can also raise your interest rate once you're 60 or more days behind on a bill. The increased rate is also known as a penalty APR, and it can apply to existing balances and new transactions. Once you make six monthly payments on time, however, the card issuer must revert your account back to your standard APR.\nThere are also a few less-common situations when a credit card's APR can change. For example, your card's APR might be lowered as part of a hardship program. But, if you don't keep up with the terms of the arrangement, your rate could go back up.\nOr, you may receive a low APR while you're on active duty as part of the Servicemembers Civil Relief Act (SCRA). The APR on your credit card could increase if you're no longer eligible for SCRA benefits. END
 TITLE: What Can Increase Your Credit Card’s APR? CONTENT: What to Do if Your APR Increases\n--------------------------------\nHow you respond to an APR increase can vary depending on what prompted the increase and how you use your credit card.\n*   **If you pay your bill in full each month,** you generally don't pay interest on purchases. As a result, you won't be impacted if your card's APR rises or falls, and don't necessarily need to react.\n*   **If you occasionally carry a balance,** a higher APR could cost you money. You might want to compare your cards' APRs and use the card with the lowest rate for purchases.\n*   **If your card's promotional rate ends** and you're still paying down the balance, you might want to try to pay down the balance sooner. Or, you may want to open a new balance transfer card and move the remaining balance to take advantage of a new promotional rate—and pay off the balance before that promo period ends.\n*   **If you're over 60 days past due,** you could research credit counseling and financial assistance programs. These may be able to provide help with your credit card bills and other household expenses.\nYou don't necessarily need or want to cancel a credit card because its APR increases. Closed cards can continue to accrue interest, and card issuers can increase the minimum payment on closed accounts. And if it applies to existing balances, that may be true even if you close your card.\nKeeping your account open could help your credit scores, as you'll have more credit available to you—which may result in a lower credit utilization rate. Depending on the circumstances, you may also be able to call the issuer and try to negotiate a lower APR while your account is open. END
 TITLE: What Is Balance Transfer APR? CONTENT: How Does Balance Transfer APR Work?\n-----------------------------------\nWhen you swipe your credit card or take out a loan, you agree to pay interest on any portion of your debt that you don't pay off in full each month. Steep rates can cause interest to outpace your payments, but a balance transfer can help you stop—or at least stall—that debt accumulation. As a bonus, balance transfers can also merge some of your monthly bills into one account and potentially lessen your chances of missing a bill and incurring late fees or late payments that can harm your credit score.\nFor the most part, balance transfer cards are just like regular credit cards: They can be used to make purchases and potentially accrue rewards, and the card issuer assigns interest rates and a credit limit based on your credit history and other factors. The main difference is these cards include a low-interest or no-interest introductory period for balance transfers. Card issuers offer these promotional rates to entice you to open an account and move your balances (and, therefore, your business) to them as a new customer, so you usually cannot make transfers between cards from the same issuer.\nThe most coveted offers boast a 0% introductory balance transfer APR. The terms usually last six to 18 months, allowing you a considerable length of time during which you won't accrue any interest on your debt. If you don't pay off your balance by the end of that timeline, however, your APR will rise to the card's ongoing interest rate, which may be quite high. Depending on your card's terms, a late payment can also forfeit your intro rate or trigger a penalty APR, so make sure to always pay on time.\nOf course, few things in this world are free; it's likely your balance transfer will come with a fee. A balance transfer fee is typically typically 3% or 5% of the transferred amount. For example, a 3% fee on a $5,000 transfer would result in a total balance of $5,150 on your new card. Occasionally, creditors may waive this fee, but that's not something you should count on.\nA balance transfer fee might offset your potential savings if you plan to clear your balances quickly, but the cost to transfer can be well worth the price of moving your debts for longer stretches of time. END
 TITLE: What Is Balance Transfer APR? CONTENT: How Can a 0% Intro APR Save You Money?\n--------------------------------------\nA 0% intro APR won't do you much good long-term unless you pay off or pay down your debt before it ends. You'll need to strategize a little to get the most out of your transfer, which may include tucking away your credit cards (both your old one and the new balance transfer card) and shifting your budget toward paying down your debt.\nBefore applying for a transfer-friendly card, sit down and map out exactly how you'll zero out your debt by the end of the promotional period, and stick to that budget. First, gather all the info about your current debts and the APR on each. Then divide your total transfer balance (including transfer fees and any annual fees) by the number of months in each offer to determine the amount you would need to pay each billing cycle to clear the balance in time.\nIn general, the best offers have 0% APR for the most prolonged promotional period possible, ideally with a minimal transfer fee. If you transfer a $5,000 balance to an account with 0% intro APR for 12 months and a 3% balance transfer fee (about $150), you'll pay just under $430 a month for a year to pay off the balance by the end of the promo period. The same terms over 18 months put your monthly payments at about $286, which could be more manageable for your budget.\nNow imagine making a $286 monthly payment on that $5,000 balance with a 20% APR: This would take you almost two full years to pay off and cost you nearly $1,000 in additional interest.\nBalance transfers often work best with an avalanche payment strategy, meaning you pay off debts with the highest interest rates first to save the most money. So, if you don't intend to transfer all your outstanding balances to your new account—or your credit limit is set too low to do so—consider moving higher-APR card balances before lower ones.\nThere are other ways to manage your debt when a balance transfer isn't right for your current financial situation. Look into different strategies, such as a debt management plan or debt consolidation loan, or contact your current card issuers about securing lower interest rates. END
 TITLE: What Is Balance Transfer APR? CONTENT: How to Choose a 0% Intro APR Balance Transfer Card\n--------------------------------------------------\nMany credit cards include balance transfers as a feature, and some are explicitly marketed for that purpose. So, what should you look for in a balance transfer card to save money?\nStart with the length of the promotional period (the longer you can stave off interest charges, the better) and transfer fees.\nAlso review annual fees, the balance transfer fee, foreign transaction fees and new purchase APR. In general, you should stop charging on your old cards and your balance transfer card until you clear out your debt. If you want to use your transfer card for purchases, you'll want a card that extends the promotional interest rates to new purchases.\nIf you want a card that will serve you well after clearing your debt, look for one that offers a low ongoing APR and perks, such as cash back or travel rewards. END
 TITLE: What Is Balance Transfer APR? CONTENT: Can a Balance Transfer Affect My Credit?\n----------------------------------------\nCreditors like to see a FICO® Score☉ of 670 points or higher to award you with an eye-catching intro APR and credit limit, so you probably won't qualify for the best transfer cards if your credit score isn't looking its best. If you can, take time to strengthen your credit score before applying for a balance transfer credit card.\nOnce you apply for, and open, the account, it can have effects on your credit both good and bad. A balance transfer card opens up more available credit in relation to your current balances, and can enhance your overall credit utilization rate if you keep your old account (or accounts) open and don't accrue additional debt. Credit utilization is an important factor in your credit scores.\nConversely, hard inquiries on your credit report triggered by card applications, as well as the addition of the new account, can temporarily drop your credit score. Keep this in mind if you intend to apply for additional credit in the near future. You can check your credit score and report for free to see where your credit stands before and after opening the account. END
 TITLE: What Is Balance Transfer APR? CONTENT: How to Make a Balance Transfer\n------------------------------\nOnce you're approved for a balance transfer APR that suits your needs, you can contact your new creditor to start the process. Credit card balances are the most popular debt to transfer, but it's possible to transfer most other debts, including personal loans.\nThe exact steps to transfer your balances depend on the balance transfer card issuer's specific rules. You might submit your account and transfer details for the lender who will then move the debt and notify you once it's done, or you may have to pay down your debt balances using funds transferred to your bank or sent to you via a check.\nDouble-check each account's terms and your budget calculations in advance so you can be ready to contact your issuers and initiate any transfers immediately. Balance transfers can take as little as a week or two, but you should plan for the process to take longer, just in case. If the intro APR offers requires debt to be transferred within a certain timeframe, a delay could mean missing out on your deal.\nIt's vital to keep making on-time payments on any balances you're transferring until you receive confirmation that your debts are on the new card—after all, you don't want to endure any additional fees right or credit score harm in the middle of your debt-paying journey. Then, continue making at least your monthly minimum on your balance transfer so you don't lose the intro offer or get hit with a penalty APR. END
 TITLE: What Is the Effective Annual Interest Rate (EAR)? CONTENT: What Influences an Effective Annual Interest Rate?\n--------------------------------------------------\nWhen you shop around for a loan or a credit card, the interest rate is often reflected as the APR. This rate includes interest charges as well as fees. On a credit card, however, the APR you see doesn't necessarily paint a complete picture. If you don't pay your bill in full every month, you may end up paying interest not only on your principal balance but also on the interest that accrued in previous months.\nThis concept is called compound interest and it can be a good thing if you're earning interest, but not so good if you're paying it.\nSince credit card APRs don't account for compounding interest, you'll need to calculate the EAR to find out the account's real-world interest rate based on both the interest rate and compounding period.\nThe same is true for investments and interest-bearing accounts, which may compound the interest or gains that you earn on top of your principal balance and what you've already earned in the account.\nMore frequent compounding periods result in a higher EAR. In other words, a savings account that compounds interest daily will generate more interest annually than an account that compounds monthly. END
 TITLE: What Is the Effective Annual Interest Rate (EAR)? CONTENT: How to Calculate an Effective Annual Interest Rate\n--------------------------------------------------\nAgain, the two components of an EAR are the APR and the number of compounding periods. If you don't already have it, you can use an APR calculator to find that rate.\nNext, you'll use the following equation, where \"i\" is the APR and \"n\" is the number of compounding periods:\nEAR = (1 + i\/n)n - 1 END
 TITLE: What Is the Effective Annual Interest Rate (EAR)? CONTENT: Why Is the Effective Annual Interest Rate Important?\n----------------------------------------------------\nWhether you're creating a debt payoff plan or a retirement strategy, understanding the EAR is crucial to your approach.\nWith a loan or credit card, the EAR provides you with the true cost of the debt. For relatively low balances and interest rates, it likely won't be significantly different from the posted APR. But if you have a lot of debt on a credit card, the cost of borrowing could end up being quite a bit more than you think.\nOn the flip side, if you're planning your approach to retirement, the goal is to find out how much you need to save on a monthly basis to achieve your goal for what you want once you leave the workforce. If you don't include compounding interest, you'll overestimate how much you need to set aside.\nCalculating the expected EAR on your investments will give you a much more accurate idea of what you need to save every month to accomplish your goal. Of course, annual returns aren't guaranteed, but working with a good financial advisor can help you come up with good enough assumptions to make the plan work. END
 TITLE: What Is the Effective Annual Interest Rate (EAR)? CONTENT: Improve Credit to Lower the Effective Annual Interest Rate on Debt\n------------------------------------------------------------------\nLenders determine their interest rates based on your creditworthiness, and the lower your credit score, the higher the EAR may be. If you're looking to pay off debt through a consolidation loan or apply for new debt, take some time first to work on your credit to maximize your chances of scoring a low rate.\nStart by checking your credit score and credit report, then take steps to address the potential issues you find there. This process can take time but can ultimately save you a lot of money in the long run. END
 TITLE: Is Credit Card Interest Compounded Daily? CONTENT: What Is Compound Interest?\n--------------------------\nA helpful way to think about compound interest is to compare it with its counterpart—simple interest. Simple interest takes a percentage of the total balance (the annual interest rate), and adds it to what's owed (the principal). For example, with a $100 loan that has a 5% simple annual interest rate and a three-year term, you would ultimately pay back $15 in interest in addition to your $100 principal balance. You might use this type of interest formula to calculate what you owe to a friend after you borrowed money and promised to pay a flat interest rate for it.\nCompound interest, on the other hand, is when you pay interest on the principal _and_ any accrued interest. If you start with a $100 balance on a loan with a 5% interest rate that compounds annually, you'll ultimately pay back $15.76 in interest due to the effect of compounding interest.\nInterest can be compounded daily, monthly or annually. And as it compounds, more interest will accrue and increase the balance you owe.\nCredit card issuers charge interest based on a daily interest rate, which is calculated based on your account's annual percentage rate (APR). You can find your daily interest rate by dividing your APR by 365 (the number of days in a year). The daily interest rate on a card with an APR of 17%, for example, would be about 0.00047%.\nCompounding can be considered a blessing or a curse, depending on the type of account. For the same reason compound interest increases a credit card balance each day, it can also increase the balance of a retirement account you've invested in. In this way, the more frequently investment returns are compounded, the more you'll earn in interest yields. END
 TITLE: Is Credit Card Interest Compounded Daily? CONTENT: In most cases, credit card interest is compounded daily using a daily interest rate and an average daily balance.\nCalculating the amount of interest you owe in a month can be complex. First, divide your credit card's APR by 365 to find your daily interest rate. Then find your average daily balance by adding any outstanding balance from the previous month to each day's balance for the ensuing month. You'll have to determine your total balance each day on your own by closely combing through your credit card statement. Divide the total by the number of days in the month.\nMultiply your average daily balance by your daily interest rate.\nIn our example, let's say your average daily average credit card balance was $500 and your APR is 17%. Multiplying 500 by 0.00047% gives you 0.233. You'd then multiply that by the number of days in your statement period. For a 30-day period, 30 multiplied by 0.233 gives you $6.99. That's the amount of interest you'll owe for the month. You can use Experian's Credit Card Payoff Calculator to better understand how interest can affect your credit card balances.\nIt's important to note that for credit cards, APR and interest rate mean the same thing. That may not be true for installment loans like student loans and mortgages, though, since the APR will generally also take into account any origination or other fees charged by the lender. END
 TITLE: Is Credit Card Interest Compounded Daily? CONTENT: How to Avoid Paying Credit Card Interest\n----------------------------------------\nIt's possible to avoid paying credit card interest entirely. Even though interest accrues throughout the month, your credit card issuer will not charge you for it if you pay the whole statement balance by the due date.\nSince most credit cards have grace periods, there's generally a 21-day period between the end of your billing cycle and your due date during which you won't be charged interest on an unpaid balance. As long as you pay your statement balance within that time period, you'll avoid paying interest charges.\nYou can also skip having to pay interest for a period of time if you use a credit card with a 0% introductory APR offer. Some cards, like the Chase Freedom Unlimited®, offer an introductory 0% APR period to new cardholders that lets you avoid interest on purchases for 15 months. Once the introductory period ends, the card's ongoing 14.99% - 23.74% variable rate kicks in.\nOr you may use a card that charges 0% APR on balance transfers for a set amount of time as a way to pay down a credit card balance without accruing interest. Balance transfer credit cards often come with balance transfer fees, usually 3% or 5% of the transferred balance, so make sure you understand any fees you'll be charged. You may find that the interest savings while paying off a balance are worth the fees you'll pay. END
 TITLE: Is Credit Card Interest Compounded Daily? CONTENT: You can also skip having to pay interest for a period of time if you use a credit card with a 0% introductory APR offer. Some cards, like the Chase Freedom Unlimited®, offer an introductory 0% APR period to new cardholders that lets you avoid interest on purchases for 15 months. Once the introductory period ends, the card's ongoing 14.99% - 23.74% variable rate kicks in. END
 TITLE: Is Credit Card Interest Compounded Daily? CONTENT: Understanding the Impact of Credit Card Interest\n------------------------------------------------\nWhile credit card interest compounds daily, that doesn't mean you're powerless to avoid the impact of these charges.\nMake it a goal to pay off your statement balance each month, potentially by setting a budget that keeps your credit card spending in check. Or opt for a credit card that offers a promotional 0% APR for a stretch of time, and stay conscientious about paying off any charges or transferred balances within the promotional period. Interest can add up fast, but knowledge and planning can help minimize its effect on your budget. END
 TITLE: The Pros and Cons of a Joint Credit Card CONTENT: What Is a Joint Credit Card Account?\n------------------------------------\nA joint credit card account allows you to be a co-owner of a credit card with another person, such as a spouse, close friend or family member.\nSharing a joint credit card account is different from adding someone as an authorized user to your account. As joint account holders, both cardholders are legally responsible for paying the debt that either one accrues. An authorized user, on the other hand, can make purchases with the card, but isn't liable for the debt they incur. Only the account owner will be penalized for accruing debt they can't repay or missing payments on the account.\nIf you're interested in opening a joint credit card account, it's important to note that this type of account is increasingly rare, with only a few major financial institutions still offering them. Authorized-user accounts are more common. END
 TITLE: The Pros and Cons of a Joint Credit Card CONTENT: Pros of a Joint Account\n-----------------------\nA joint account can be useful for people who want to share the responsibilities of card ownership. A few of the advantages include:\n*   **An account owner with lower credit scores can get access to more favorable terms.** If one of the cardholders has less positive credit history than the other, they can take advantage of the joint account holder's higher credit scores to gain access to better interest rates and higher credit limits on a credit card.\n*   **A joint account can help account holders improve their credit.** If the account is kept in good standing—meaning payments are made on time, every time—a joint account can help lift the credit scores of a cardholder who could benefit from positive credit history. It can be a useful way to build and establish credit for someone who needs it.\n*   **Fewer bills to keep track of.** A joint account can make it easier to manage bills each month. That can help account owners, like a married couple, simplify their finances. Both users can also share all the privileges of a card, like credit card travel rewards or cash back. END
 TITLE: The Pros and Cons of a Joint Credit Card CONTENT: Cons of a Joint Account\n-----------------------\nJoint credit card accounts have some major disadvantages. Before opening one, take these into consideration:\n*   **Both account holders' credit history will be affected.** If one credit card user racks up a lot of charges on the account or payments are missed, both of the account owners' credit scores will take a hit. Both joint account cardholders are equally responsible for paying off the card's balance, regardless of who incurred the charges.\n*   **Disputes over the card can cause issues in a relationship.** A shared account can lead to disagreements if both users don't agree about how much to spend or who should make payments.\n*   **Changes in the relationship can make things complicated.** If you divorce or experience another kind of separation, you will need to close or otherwise figure out how to move forward with the account. It's also possible that one user could purposefully spend or skip payments to hurt the other's credit. END
 TITLE: The Pros and Cons of a Joint Credit Card CONTENT: Should You Open a Joint Credit Card Account?\n--------------------------------------------\nIf you're considering a joint account, have a frank discussion with the co-applicant about the responsibilities that come with having the card. It's good to put it all out on the table, including your spending habits and credit philosophy in general.\nMake sure it's clear to your co-applicant that they will be legally responsible for repaying any charges you make, and vice versa. Set up guidelines for how much you both expect to charge to the account in total, how you'll make payments and how you'll avoid accruing debt and interest charges.\nIf a joint credit card sounds overwhelming, it might make more sense to add the person as an authorized user. They'll be able to make purchases, but you'll still have full control over the account. The account can even help improve the authorized user's credit, if that's a motivating factor for opening a joint account.\nEven if you do choose to use a joint account, both cardholders could consider opening a separate credit card account in their own names too. That provides a backup in case the relationship ends or the joint account isn't working out. END
 TITLE: The Pros and Cons of a Joint Credit Card CONTENT: How Adding an Authorized User Is Different From Having a Joint Account\n----------------------------------------------------------------------\nWhile many financial institutions don't offer joint credit card accounts, authorized-user arrangements are easy to set up through most major credit card issuers. An authorized user is allowed to make charges to the account, but since they're not responsible for making payments, there's no risk that they will fall behind on the arrangement and damage the main cardholder's credit with missed or late payments.\nOf course, there is the risk that they will charge more than the main cardholder is willing to repay. There is an option that can help you avoid this issue, however: Many card issuers allow the primary account owner to set spending limits for authorized users. You can also remove an authorized user from the account at any time. This allows for more control over the account than a joint account holder arrangement provides. END
 TITLE: The Pros and Cons of a Joint Credit Card CONTENT: Considering Joint Credit Card Ownership\n---------------------------------------\nSince there are several ways a joint credit card account can cause difficulties for the cardholders, it's especially crucial for both parties to agree on how they plan to use it.\nIf there's a possibility that one or both cardholders will spend more than they've agreed to, could miss making payments as required, or that the relationship will not continue for the foreseeable future, consider keeping your credit card accounts separate or using an authorized user arrangement instead. END
 TITLE: What Is a Signature Loan? CONTENT: How Does a Signature Loan Work?\n-------------------------------\nYou can use a signature loan for essentially anything you want. It's an unsecured loan that can help you consolidate debt, cover an emergency expense, pay for a home improvement or even go on a vacation.\nYour credit and income will determine the fixed interest rate of your signature loan. It's important to note that since there are no assets or collateral involved, your interest rate may be higher than that of a comparable loan of another type. A signature loan term can range from a few months to five years, but most lenders offer shorter-term signature loans. END
 TITLE: What Is a Signature Loan? CONTENT: Is a Signature Loan the Same as a Personal Loan?\n------------------------------------------------\nA signature loan is considered an unsecured personal loan. Whether a lender refers to it as a signature loan or an unsecured personal loan, there's no collateral such as a house or car tied to the loan. Therefore, a signature loan requires a higher credit score and is more difficult to obtain than a secured loan such as a mortgage that's secured by your house. END
 TITLE: What Is a Signature Loan? CONTENT: How Much Can You Borrow on a Signature Loan?\n--------------------------------------------\nThe bank or lender you choose will consider your credit history and income to determine how much money you can borrow with a signature loan. While signature loans can range from $500 to $50,000, they tend to be smaller because they are not backed by collateral and therefore present more risk to the lender. END
 TITLE: What Is a Signature Loan? CONTENT: How to Get a Signature Loan\n---------------------------\nIf you'd like to take out a signature loan, follow these steps:\n### Check Your Credit Score\nBefore you apply for a signature loan, it's a good idea to check your credit score. If your credit score is lower than you'd like it to be, you may want to focus on improving it. The higher your credit score is, the more likely it is you'll receive a lower interest rate and more favorable terms. So, if you don't immediately need the loan to cover an emergency expense, waiting until you've increased your credit score may be worthwhile.\n### Gather All of Your Information\nMost signature loan applications will ask you for the same personal details. You'll likely have to share your monthly income, the name of your employer, whether you're a homeowner or renter and your monthly housing costs. You may need to provide your W-2 forms or pay stubs to prove your income, so having these documents handy is a good idea.\n### Compare Your Options\nDon't be tempted to go with the first signature loan lender you find—it's important to do your research and compare all your options. That way, you can make an informed decision and reduce your risk of overpaying for your loan.\nDuring your research, you'll find that some lenders will list the minimum credit score they require for personal loans on their websites. If you come across a lender that seems like a good option but you don't know if you'll meet their requirements, you can always call or email them to find out. Applying for signature loans will result in hard inquiries on your credit report, so reduce the impact on your credit by limiting your application period to a short time frame and only applying to a few loans you're confident you'll qualify for.\nIf a lender can prequalify you for a loan, this will not affect your credit score. Prequalifying is a great way to get an idea of the types of offers you may receive.\n### Read the Fine Print\nOnce you find a signature loan you'd like to move forward with, read the fine print before signing on the dotted line. Look out for prepayment penalties, automatic withdrawals, origination fees, late payment fees and other details that can increase the cost of your loan or cause unwanted surprises.\n### Accept the Loan and Start Making Payments\nIf you've read the fine print and are satisfied with the terms, accept the loan. With some lenders you may get your money in a few business days, while others may take a bit longer. As soon as you receive your funds, take note of when your first payment is due and consider setting up automatic payments. Also, think about adding extra money to your payments each month so you can pay off your loan more quickly. END
 TITLE: What Is a Signature Loan? CONTENT: Can You Get a Signature Loan With Bad Credit?\n---------------------------------------------\nWhile it's possible to get a signature loan with bad credit, you'll find it more difficult to do so than if you had good or excellent credit. You may also face a higher interest rate, which will make your loan more costly in the long run. Signature loans for those with bad credit can come with interest rates of 30% or even higher.\nYou may also need a cosigner to get approved. A cosigner is a friend or family member who will agree to pay off the loan in the event you can't. It can be tough to find someone willing to commit to cosigning a loan, so that requirement may present a roadblock to some. END
 TITLE: What Is a Signature Loan? CONTENT: A Signature Loan Is a Short-Term Financial Solution\n---------------------------------------------------\nIf you're in need of quick cash, a signature loan can be a good option. However, it should only be used as a short-term financial solution and can be expensive if you don't have the best credit. If you find that you're always short on funds and taking out signature loans, review your budget, cut your expenses, increase your income and focus on saving money. END
 TITLE: Is Personal Loan Debt Better Than Credit Card Debt? CONTENT: When to Use a Personal Loan\n---------------------------\nA personal loan is an installment loan. With this type of loan, you borrow a set amount of money for a specific amount of time and make fixed monthly payments (\"installments\") until the loan is paid off. Once the loan is paid in full, it's considered closed; if you want to borrow more money, you have to apply for a new loan.\nYou can get personal loans from banks, credit unions or online lenders, and use them for any purpose you want. Some people use personal loans to pay for vacations, home renovations and weddings. Others take out personal loans to pay off other debts. For instance, you might take out a personal loan to pay off a large credit card balance at a lower interest rate, or to consolidate a lot of different debts into one monthly payment. (This type of personal loan is called a debt consolidation loan.)\nWhat are some of the benefits of personal loans compared with credit cards?\n*   You have fixed monthly payments, which makes it easier to budget.\n*   If you have a good credit score and stable income, you can generally get a personal loan at a lower interest rate than a credit card. While interest rates vary widely, personal loans can currently be found with interest rates as low as 6%.\n*   Personal loans generally go up to $50,000, more than the average credit card limit.\n*   You get a lump sum of cash, so you can pay companies or individuals that don't accept credit cards.\nHowever, personal loans can have some downsides too:\n*   Fixed monthly payments mean less flexibility than you have with credit cards. Even if you're short of cash one month, you still have to make your full payment.\n*   You have to pay origination fees (a percentage of the total loan amount) to take out a personal loan.\n*   Paying less than the full monthly loan installment may be reported as a late payment to credit reporting agencies, hurting your credit scores. You may also be charged fees for late or partial payments.\n*   If you want to pay off the loan before its end date, you might have to pay a prepayment fee.\nWhen considering a personal loan, always compare a wide variety of lenders and be sure you understand all the costs involved, including the interest rate, origination fees and any other fees or penalties. END
 TITLE: Is Personal Loan Debt Better Than Credit Card Debt? CONTENT: When to Use a Credit Card\n-------------------------\nA credit card is a revolving credit account. You can charge up to a maximum amount of money (your credit limit) and can carry a balance (\"revolve\") from month to month; you're charged interest on that balance. The minimum payment you must make each month varies depending on how much credit you've used. You decide how much you want to repay each month beyond the required minimum.\nWhat are some of the benefits of credit cards compared with personal loans?\n*   As long as you have a credit history, it's fairly easy to qualify for a credit card. Even if you don't have a credit history, you may be able to get a secured credit card or starter card.\n*   Credit cards offer flexible payment options. If you're short of cash and can't pay off the balance in full one month, you can just pay the minimum.\n*   Some credit cards offer rewards, such as travel miles or cash back, based on your spending.\n*   If you pay off your balance in full each month, you won't accumulate any interest.\n*   If you currently have a balance on a high interest credit card, you may be able to transfer the balance to a balance transfer card that offers 0% interest for a certain period of time.\nOf course, there are some downsides to credit cards too:\n*   Credit cards generally have higher interest rates than personal loans. (The average credit card currently has an annual percentage rate, or APR, of more than 17 percent.) If you carry a large balance, interest charges can add up quickly.\n*   Credit cards typically charge late fees; many charge annual fees as well.\n*   If you make a late payment or miss a payment, the card issuer may raise your interest rate.\n*   If you want a lump sum of cash, you'll need to take a cash advance on the card, typically at higher interest rates than making a purchase with the card.\n*   If you're having trouble managing your money, credit cards can tempt you to spend more than you can afford to pay off.\nIf you need a relatively small sum of money—say, between $1,000 and $5,000—a credit card may be a better option than a personal loan. For example, getting a personal loan to get your car repaired is probably overkill. To find the best credit card for you, consider the credit limit you'd like, what you plan to use the card for, and whether you expect to carry a balance from month to month. Then compare a variety of credit cards, making sure you understand their interest rates, fees and terms. Experian's CreditMatchTM tool can match you up with credit cards you're more likely to qualify for based on your credit profile. END
 TITLE: Is Personal Loan Debt Better Than Credit Card Debt? CONTENT: How Personal Loans and Credit Cards Impact Your Credit Scores\n-------------------------------------------------------------\nBesides giving you money, personal loans and credit cards have an additional benefit: They can boost your credit scores. Making your payments on time every month will help prove that you're doing a good job at managing your debt.\nIf you use credit cards, keeping your credit utilization ratio below 30% will also improve your credit scores. Your credit utilization ratio measures the percentage of revolving credit you have available that you're actually using. The lower your ratio, the better.\nA personal loan adds variety to your credit mix, which is one of the factors used to determine your credit scores. And if you use a personal loan to pay off credit card debt, you'll reduce your credit utilization ratio.\nKeep in mind that both personal loans and credit cards can also hurt your credit. Making late payments or missing payments can lower your credit scores, making it more difficult to get credit in the future. END
 TITLE: Is Personal Loan Debt Better Than Credit Card Debt? CONTENT: Make an Informed Decision\n-------------------------\nIs a personal loan or a credit card the answer to your prayers for a cash infusion? Only you can make that decision. Whichever option you choose, be sure to do your homework. Compare different loans and credit cards—considering interest rates, repayment terms and fees—to find the option that not only helps you pay for that dream vacation, major plumbing repair or tax bill, but also makes long-term financial sense for you. END
 TITLE: 6 Steps to Refinancing Your Home Mortgage CONTENT: 1\\. Check Your Credit\n---------------------\nHaving good credit has a lot of perks, and if your credit score has improved since you got your first mortgage loan, it could improve your chances of getting a lower interest rate than you're currently paying. So before you start the application process, check your FICO® Score☉ to understand your current situation. Once you know your FICO® Score, take a look at the score range to see where you stand:\n*   **Exceptional**: 800 to 850\n*   **Very good**: 740 to 799\n*   **Good**: 670 to 739\n*   **Fair**: 580 to 669\n*   **Very poor**: 300 to 579\nYou can check your credit reports and scores through Experian for free. Many conventional mortgage lenders may approve your loan application if your FICO® Score is 620 or higher, but scores in the mid-700s and above will give you the best chance of scoring a low rate.\nIn addition to your credit score, lenders will also look at other factors, such as your payment history, recent credit applications, your credit utilization ratio, major negative items like bankruptcies and foreclosures, and more.\nAs a result, it's also important to check your credit report to make sure there aren't any inaccuracies listed. If you find something that you believe is incorrect or fraudulent, dispute it with the credit reporting agencies. If it's determined that you're correct, the item will be corrected or removed, which may make it easier to get a better loan rate. END
 TITLE: 6 Steps to Refinancing Your Home Mortgage CONTENT: 2\\. Determine Your Target Rate\n------------------------------\nMortgage interest rates change daily, and sometimes multiple times a day. With so many updates, it's important to do your research on current rates and trends.\nBut just because interest rates are lower than what you have now, it doesn't necessarily mean you'll save money. That's because, just like the initial mortgage process, refinancing comes with closing costs that can range from 2% to 6% of the loan amount.\nAs a result, you'll need to determine a target interest rate that would net you interest savings equal to or greater than your closing costs. Using an online mortgage calculator, determine how much money you'd save in interest with the lower rate each year, then divide the closing cost amount by that figure to find out how long it'd take you to break even.\nIf you're planning on staying in the home for longer than that period, you'll ultimately save money.\nAlso, it's important to consider that your goal of refinancing may not be to get a lower interest rate. For example, you may have an adjustable-rate mortgage and want to switch to a fixed interest rate to avoid rate fluctuations in the future, or you might want to get a cash-out refinance to tap some of the equity in your home. Work with a professional to help you run the numbers to make sure doing this is the right financial option for you. END
 TITLE: 6 Steps to Refinancing Your Home Mortgage CONTENT: 3\\. Shop Around and Choose a Qualified Lender\n---------------------------------------------\nShopping around is one of the best ways to score a lower interest rate on your new mortgage loan. Each lender has its own set of criteria for determining interest rates, and you may be able to qualify for a lower rate with one than with another.\nAlso, closing costs and fees can vary from lender to lender, so comparing multiple options can help you maximize your savings. Plan to get at least three or four quotes from mortgage lenders to give you a good idea of what you can qualify for. This process may also help you gain some power in negotiations as you seek to reduce your costs from interest and fees.\nAlso, fortunately, submitting applications with multiple lenders won't have a significant negative impact on your credit score. That's because credit scoring models typically combine multiple inquiries from mortgage, auto and student loan applications, as long as you submit all of your applications within a short period—typically between 14 and 45 days depending on the model. END
 TITLE: 6 Steps to Refinancing Your Home Mortgage CONTENT: 4\\. Watch Out for High Lending Fees\n-----------------------------------\nEvery lender has its own set of mortgage refinance loan fees, which means some lenders may charge fees others don't. Also, some lenders may charge more for certain services than others.\nCommon fees associated with refinancing a mortgage include:\n*   Escrow and title fees\n*   Lending fees\n*   Appraisal fees\n*   Credit fees\n*   Insurance fees\n*   Property taxes\n*   Origination fees\n*   Interest rate discount fees (also called points)\nThe lower the fees, the less time it will take to break even with the savings you're gaining from a lower interest rate. Lenders will typically provide a loan disclosure with an estimate of closing costs, so make sure to itemize the different fees and compare them with costs from other lenders. END
 TITLE: 6 Steps to Refinancing Your Home Mortgage CONTENT: 5\\. Be Patient About Signing a Mortgage\n---------------------------------------\nA mortgage loan is a significant financial commitment, so it's crucial that you take the time to read the full terms of your new contract. In addition to understanding the fees associated with the loan, also determine whether you'll be charged a prepayment penalty if you pay off the loan too early—which can happen if you refinance again or sell the home.\nAlso, read through all of the contract clauses to make sure you understand the entire scope of the contract with the new lender. If you don't understand a term, don't hesitate to ask for clarity.\nIn some cases, the lender may try to pressure you to sign quickly. If you ever feel uncomfortable about the process, consider working with a different lender. Also, note that mortgage lenders will typically allow you to lock in an interest rate—typically for 30 to 60 days, but sometimes for as long as 120 days—which should give you plenty of time to make sure you're ready to go through with the process.\nAnd if interest rates drop even lower during the rate lock period, you can talk to your lender \"floating down\" your rate to the current rate for a fee or simply start the process over with another lender. END
 TITLE: 6 Steps to Refinancing Your Home Mortgage CONTENT: 6\\. Don't Open Any Credit During the Refinancing Process\n--------------------------------------------------------\nIn the time leading up to your mortgage refinancing, it's imperative you don't apply for new credit cards or loans. Because the mortgage lender will check your credit at the time of application and before closing, it's also critical to avoid opening credit accounts during the refinancing process.\nThere are a few reasons for this advice:\n*   **Credit score**: Every time you apply for credit, the resulting hard inquiry can knock a few points off your credit score. Depending on where your credit score stands, losing even a handful of points could impact your interest rate on the new loan. Avoid any action that could negatively impact your credit score.\n*   **Debt-to-income ratio**: Your debt-to-income ratio—the percentage of your gross monthly income that goes toward debt payments—helps determine how much you can borrow in terms of your monthly payment. Adding more debt will increase your ratio, and depending on where it was at before the new loan, it could make it challenging to get approved for the loan amount you want.\n*   **Risk**: A mortgage loan isn't just a big commitment for you; it's also a big commitment for the lender. If you're opening one or more credit accounts shortly before or during the refinancing process, it could cause a lender to think you're struggling financially and relying on debt to meet your financial obligations. In that case, a mortgage lender may lose confidence in your ability to make your monthly mortgage payments on time and either deny your application or charge a higher rate.\nAs such, if you're hoping to get a new credit card or car loan, wait until after you've closed on your refinance loan to apply for those credit accounts. END
 TITLE: 6 Steps to Refinancing Your Home Mortgage CONTENT: Make the Best Decision Based on the Numbers\n-------------------------------------------\nRefinancing a mortgage may seem like a simple process, but it involves a lot of moving parts, including costs and the potential for savings.\nAvoid rushing the process in an effort to get it behind you. Take your time to shop around and research your options, and take advantage of the fact that mortgage lenders will lock your rate for a set period to review the costs and savings, run the numbers, review the terms and conditions of the contract and decide whether it's the right fit for you.\nAlso, keep in mind that if your credit has improved, but you've still got some room to run, you will have the opportunity to refinance again in the future. END
 TITLE: Can You Buy a House With a Personal Loan? CONTENT: If you're buying a standard single-family home, getting a mortgage is your best bet. Personal loans typically have much shorter repayment terms and higher interest rates than mortgage loans, making them a poor choice in that situation.\nHowever, if you're planning to purchase a very small home or mobile home, where the cost is much lower, a personal loan may be a decent option. In fact, it can be difficult to find a traditional mortgage lender who will lend you money to finance a tiny house or a mobile home.\nSome lenders market personal loans specifically for use with a very small house or mobile home. If you go this route, however, keep in mind that it will be considered a cash offer. This means that you won't be using the home as collateral for the loan, and the seller may be more willing to choose you because the sale isn't contingent on a mortgage process. END
 TITLE: Can You Buy a House With a Personal Loan? CONTENT: Can You Use a Personal Loan for a Down Payment?\n-----------------------------------------------\nIf you're buying a standard home and need a traditional mortgage, your down payment requirement can typically range from 3% to 20%, depending on the lender and the situation.\nWhile it may be tempting to use a personal loan to cover this amount, you'll have a hard time convincing the mortgage lender to accept it. The primary reason for this is that a personal loan increases your debt-to-income ratio (DTI), which can hurt your chances of getting approved.\nAlso, it could be a sign that you can't manage your money well, which can be a red flag for mortgage lenders.\nLegitimate uses for a personal loan include consolidating debt, paying medical expenses, starting a business, renovating your home and financing a large expense. END
 TITLE: Can You Buy a House With a Personal Loan? CONTENT: Other Ways to Pay for a House\n-----------------------------\nIf you're having a hard time finding what you need to finance a home, there are plenty of options, including loans, programs and grants, that can make it easier to achieve your goal.\nIf you're a veteran or buy a home in a rural area, for instance, you may be able to get a loan with no money down through the U.S. Department of Veterans Affairs or the U.S. Department of Agriculture. Some conventional mortgage lenders may accept down payments as low as 3%, and the Federal Housing Administration offers loans with a 3.5% down payment.\nIf your income is considered low or moderate, you may qualify for a grant from the nonprofit National Homebuyers Fund. The grant can be worth up to 5% of your loan amount to help you cover the down payment, and you never have to pay it back. You can also check to see if there are down payment assistance programs in your state. END
 TITLE: Can You Buy a House With a Personal Loan? CONTENT: How a Personal Loan Impacts Credit\n----------------------------------\nWhile getting a personal loan to buy a small house or mobile home can be a good option, it's important to understand how it might affect your credit.\nIn general, applying for any type of credit can knock a few points off your credit score when the lender runs what's called a hard inquiry on your credit report. That said, inquiries generally don't have a lasting impact on your scores.\nThe primary way a personal loan affects your credit is how you handle your monthly payments. If you pay your bill on time every month, the positive payment activity can improve your credit scores. On the flip side, missing a payment or defaulting on the loan can wreck your credit, even if you get to keep the home.\nTo help you stay on track with loan payments, consider setting up automatic payments. Some lenders may even offer an interest rate discount if you do this. Another option is to set up alerts to remind you each month when your payment is due. END
 TITLE: Can You Buy a House With a Personal Loan? CONTENT: Check Your Credit Before Applying for a Loan\n--------------------------------------------\nRegardless of which loan you're planning to use to buy your home, it's important to make sure your credit is in good enough shape to qualify for favorable terms. Check your credit score to know where you stand, and look for any areas you might need to address before you apply.\nYou may be able to qualify for a loan with a relatively low credit score. But the higher your score, the better your chances of getting a lower interest rate. And as with any loan, make sure you shop around and compare several lenders to ensure you get the best rate available. END
 TITLE: How Does Opening Multiple Rewards Credit Cards Affect My Credit? CONTENT: Virtually every time you apply for credit, the lender will check one or more of your credit reports and may review your credit score. This process helps them assess how you've managed credit in the past and determine whether to approve your application.\nCredit checks associated with applications for credit typically result in what's called a hard inquiry appearing on your credit report. In general, an additional hard inquiry on your credit report won't impact your credit score much—according to FICO®, you can expect to see your score drop by fewer than five points.\nIf you apply for multiple credit cards at the same time or in short succession, however, the negative impact can be compounded and hurt your score more. This is primarily due to the fact that applying for multiple credit accounts in a short period raises your risk as a borrower in the eyes of creditors. As a result, it's best to space out your credit card applications and avoid unnecessary inquiries to avoid putting yourself in a difficult position.\nOpening a new credit card can also impact your credit score if it lowers your credit utilization rate. This rate is calculated by adding up your credit card balances and dividing that figure by your total available credit across all your cards. A high utilization rate can hurt your credit. But if you add to your available credit without increasing your balances, your utilization rate will go down, which can help improve your credit score.\nAnother way your credit score can be impacted is the new account's effect on the length of your credit history. One of the factors in credit score calculations considers how long you've had credit as well as the average age of your credit accounts. New accounts can bring down this average, which can potentially have a (small) effect on your scores. END
 TITLE: How Does Opening Multiple Rewards Credit Cards Affect My Credit? CONTENT: Things to Keep in Mind Before Applying for Rewards Cards\n--------------------------------------------------------\nThere are several different types of rewards credit cards, and each one has its own set of benefits and features. Here are some things to think about while you're shopping around for the right one:\n*   **What types of rewards are offered?** Credit card rewards are categorized into three general buckets: cash back, points and miles. Within those categories, though, are different types of rewards structures and rates. Think about what you want out of your new card, whether it's airline miles, hotel points, general travel rewards or simple cash back. In some cases, it may be good to have a mix of different types to maximize your rewards.\n*   **Will you be able to maximize rewards?** The best way to maximize credit card rewards is to find cards with rewards programs that mesh well with one another. For example, if two of your top spending categories are gas and groceries, it's easy to find a card that offers a bonus rewards rate (3% is common) on spending in those categories. For example, the Blue Cash Everyday® Card from American Express earns 3% on U.S. supermarket spending up to $6,000 annually (1% cash back once the cap is reached), and 2% cash back on spending at U.S. gas stations and select U.S. department stores. In most cases, though, rewards cards will give you just 1% back on spending that doesn't fit into a bonus category, or once you've reached its spending limit. Pairing the card with one that has a 2% base rewards rate, ensures that you'll always earn at least 2% back on your purchases (the Citi® Double Cash Card - 18 month BT offer from our partner could fit the bill).\n*   **Is there an annual fee?** There's nothing wrong with getting a credit card with an annual fee. If you're generally fee-averse, you may be inclined to limit your search to no-annual-fee credit cards. As you do your research, however, be sure to compare each card's benefits and how they relate to any potential annual costs. In many cases, you can get far more value every year than what you're paying in annual fee costs, even compared with a similar card with no fee.\n*   **When do rewards expire?** In many cases, your rewards won't expire as long as your account is open and in good standing. There are some exceptions, though, especially among airline and hotel credit cards. Even with these, though, you can usually keep your rewards from expiring when you earn or redeem new points or miles. Regardless, it's a good idea to know how long you might have to use your rewards to make sure you don't forfeit them. END
 TITLE: How Does Opening Multiple Rewards Credit Cards Affect My Credit? CONTENT: How to Choose the Best Rewards Card\n-----------------------------------\nThere's no single best rewards credit card out there for everyone, so it's important to know what you want. Here are three factors to consider as you shop around:\n*   **Credit score**: Most of the best rewards cards are reserved for folks with good or excellent credit. According to FICO®, this starts at a score of 670, but card issuers may prefer applicants to have a score of 700 or above—or possibly even higher for the cards with the most perks and benefits. If your credit score isn't where it needs to be for the card you want, consider taking some time to improve it before you apply.\n*   **Spending habits**: Again, maximizing rewards requires you to pick cards that give you the most value on your biggest spending categories. Write down your expenses from the past few months to get an idea of where most of your money goes. This will help you find the cards that are best tailored to how you plan to use them.\n*   **Lifestyle**: Some credit cards also offer other benefits that can make it easier to have the lifestyle you want. For example, many travel credit cards offer various travel- and dining-related benefits that can save you money. Some premium travel cards even go so far as offering airport lounge access, elite status and more. END
 TITLE: How Does Opening Multiple Rewards Credit Cards Affect My Credit? CONTENT: How to Responsibly Use Credit Cards\n-----------------------------------\nThere's nothing wrong with using credit cards to meet your rewards goals. But it's crucial that you develop good credit habits to avoid the dangers credit cards can pose. Here are some ways to use your cards responsibly:\n*   **Use a budget.** Credit cards make it easy to carry a balance from month to month. But if you're working with a budget, it'll be easier to avoid spending money you don't have.\n*   **Pay on time and in full.** Credit cards charge relatively high interest rates. But if you pay your monthly bill by your due date every month, you don't have to worry about interest charges at all. Consider setting up automatic payments to avoid missing one.\n*   **Keep your balances low.** Again, your credit utilization is an important factor in your credit score. Some experts recommend keeping it below 30%, but there's no hard-and-fast rule. The lower it is, the better. You can keep your utilization rate low by making multiple payments throughout the month or using a mix of credit cards, your debit card and cash to avoid racking up a high balance. END
 TITLE: How Does Opening Multiple Rewards Credit Cards Affect My Credit? CONTENT: Your Credit Is Key to Enjoying the Best Credit Cards\n----------------------------------------------------\nWhether you're thinking of applying for a new credit card now or at some point in the future, it's critical that you maintain a good credit score to improve your chances of getting the card you want.\nCheck your credit score to know where you stand, and consider also reviewing your credit report to see if there are areas that you need to address. The process of improving credit can take time. But with credit cards, the reward is having a wider selection of options from which to choose. END
 TITLE: How Many Hard Credit Inquiries Is Too Many? CONTENT: How Do Hard Credit Inquiries Affect Your Credit?\n------------------------------------------------\nLenders and credit scoring models consider how many hard inquiries you have on your credit reports because applications for new credit increase the risk a borrower poses. One or two hard inquiries accrued during the normal course of applying for loans or credit cards can have an almost negligible effect on your credit. Lots of recent hard inquiries on your credit report, however, could elevate the level of risk you pose as a borrower and have a more noticeable impact on credit scores.\nHard inquiries can stay on your credit report for two years, but the degree to which they affect your credit diminishes over time. While they could initially reduce your FICO credit score by several points, your scores will likely recover after a few months. The credit score sting caused by many hard inquiries in a short period of time will take longer to go away. At any rate, both types of inquiries are automatically removed from credit reports after two years.\nAgain, your overall credit health is what matters most. If you have a consistent track record of making on-time payments and keeping your revolving credit balances low, it isn't likely that a few hard inquiries will have enough of an impact on your credit scores that it affects your interest rates or credit approval. END
 TITLE: How Many Hard Credit Inquiries Is Too Many? CONTENT: How Do Hard Inquiries Affect Rate Shopping?\n-------------------------------------------\nFrom mortgages to car loans, shopping around and comparing rates and terms offered by different lenders can lead to substantial savings over the long haul. According to Freddie Mac research, borrowers who get one additional mortgage rate quote save an average of $1,500 during their loan term. That number jumps to $3,000 for borrowers who get five quotes.\nReaching out to multiple lenders can pay off, but this may also result in several hard inquiries within a short period of time. The good news is that the majority of credit scoring models will lump multiple inquiries for one loan type together and treat them as a single inquiry if they're made within a short period of time. For FICO, this window is 45 days; VantageScore uses a 14-day period. END
 TITLE: How Many Hard Credit Inquiries Is Too Many? CONTENT: How to Reduce the Impact of Hard Inquiries on Your Credit\n---------------------------------------------------------\nHard inquiries on their own generally aren't enough to significantly reduce your score in a lasting way. This is especially true for those who have a positive credit history. In most cases, hard inquiries result in a temporary credit score drop that rebounds within a few months.\nImproving your credit score is one of the best ways to cushion the blow of hard inquiries. To do this, focus your attention on the following areas:\n*   Always make on-time payments across all your accounts.\n*   Pay down your debt and keep your credit utilization ratio below 30%; the lower, the better.\n*   Pay off any past-due accounts, including collections or charge-offs.\n*   Periodically check your credit report and credit score and pay close attention to the risk factors included with your score.\n*   Apply for credit only when you need it. END
 TITLE: How Long Do Hard Inquiries Stay on Your Credit Report? CONTENT: What Is the Difference Between a Hard and Soft Inquiry?\n-------------------------------------------------------\nWhen you review your credit reports after applying for a loan, credit card or other form of credit, you'll likely see the hard inquiry it caused, but you also may see other inquiries, called soft inquiries.\nSoft inquiries are often the result of you checking your own credit report, a preapproved offer of credit, or a periodic account review by a company you already do business with—but those aren't the only events that can cause them. They differ from hard inquiries because they don't generally reflect an application you've submitted for credit, and could even be the result of something like the IRS verifying your identity for your tax refund, for instance. Soft inquiries do not affect your credit scores. END
 TITLE: How Long Do Hard Inquiries Stay on Your Credit Report? CONTENT: How Much Does a Hard Inquiry Lower Your Credit Scores?\n------------------------------------------------------\nHow many points does a hard inquiry cost you off your credit score? FICO® reports that a hard inquiry will reduce your credit score by five points or less. Your scores should rebound in a few months.\nIf you have less-than-stellar credit and a lot of hard inquiries for different types of credit within a short time, the effects will last longer; your overall credit score may be slightly reduced for as much as a year. After two years, hard inquiries drop off your credit report entirely.\nIn general, the number of hard inquiries on your credit report isn't a major factor in your credit score. The FICO® Score☉ model considers your payment history, credit utilization, total debt, length of credit history, credit mix and new credit when calculating your credit score. Hard inquiries are part of the \"new credit\" category, but they don't weigh heavily relative to the other factors. END
 TITLE: How Long Do Hard Inquiries Stay on Your Credit Report? CONTENT: How Do Hard Inquiries Affect Shopping for Loans?\n------------------------------------------------\nWhen you're shopping around for the best rates on a mortgage, auto loan or other large loan, you may apply with several lenders, which will cause a separate hard inquiry from each one to appear on your credit report. But that doesn't mean your credit score will plummet, as most credit scoring models weigh multiple inquiries for mortgage or auto loans as one inquiry if they are made within a certain time period (14 to 45 days, depending on the scoring model). In fact, the newest scoring models from FICO® and VantageScore® completely ignore multiple inquiries for mortgage and auto loans within a short period of time. So you can shop for that dream car or home without worrying about your credit scores.\nHowever, multiple hard inquiries for other types of credit, such as credit cards or even personal loans, aren't treated the same way, and may cause lenders to suspect you're having financial difficulties. Applying for a credit card, an auto loan, a home equity loan and a personal loan within the span of a month, for instance, could be a signal you're in need of money or are taking on too much new debt too fast, and pose a risk to lenders that you won't be able to pay it all back.\nIf you're making a major purchase, you shouldn't necessarily let the fear of hard inquiries stop you from shopping around for the lowest interest rates. However, you should take steps to ensure that hard inquiries don't negatively affect your credit. END
 TITLE: How Long Do Hard Inquiries Stay on Your Credit Report? CONTENT: How to Reduce the Impact of Hard Inquiries on Your Credit\n---------------------------------------------------------\nIf you plan to apply for a large loan such as a mortgage, having fewer hard inquiries on your report can make you more attractive to lenders. To minimize the impact of hard inquiries on your credit score, avoid applying for new credit in the months leading up to your big loan application.\nYou should also get a free copy of your credit report three to six months in advance and check to make sure your credit and inquiry information is accurate and up-to-date. Hard inquiries that you don't recognize could be a warning sign that someone has stolen your identity and is attempting to apply for credit in your name. Keep in mind that the business name a company uses to request your credit report may not be the same as the name you know them by. Some companies have a \"Doing Business As (DBA)\" name or use an abbreviated name when accessing your credit report.\nImproving your credit score can also reduce the impact of hard inquiries. The stronger your credit is, the less likely it is that an inquiry will have a significant impact. If you're not sure what your credit score is, check it to see. The higher your score, the less you'll need to worry about the negative effects of a single credit inquiry. To improve your credit score before applying for a loan, take these steps:\n*   Get the risk factors that come with your credit score and use them to identify the issues having the most impact on your score. If an inquiry is affecting a lending decision, there are likely other more important issues that are hurting your credit. An inquiry by itself will never cause you to be declined or pay a higher rate.\n*   Keep your credit card balances low. Ideally, pay your balances in full every month. If that's not possible, work on paying down debt and keeping your credit utilization ratio below 30%. This ratio measures how much of your available credit you're actually using. Use too much, and lenders may be reluctant to extend more.\n*   Sign up for Experian Boost™† , a free service that adds your on-time utility, cellphone, Netflix® and other bill payments to your credit report. END
 TITLE: How Long Do Hard Inquiries Stay on Your Credit Report? CONTENT: Can Inquiries on My Credit Report Be Disputed?\n----------------------------------------------\nLegitimate inquiries can't be disputed or removed from your credit report until the two-year time period is up.\nA hard inquiry from a company you don't recognize doesn't necessarily indicate a case of identity theft. When you shop around for a mortgage or car loan, websites, brokers or dealerships may send your information to multiple lenders, who will each check your credit. If you don't recognize the name of the company that performed the hard inquiry, you can often find contact information for the company listed in the entry on your credit report or online, so you can call to verify.\nIf it turns out that a company pulled your credit report in error, you can ask the company to contact the credit bureau(s) to have the inquiry removed. If someone is fraudulently applying for credit in your name, you can contact the credit bureau to dispute the inquiry and ask to have it taken off your credit report. END
 TITLE: How Long Do Hard Inquiries Stay on Your Credit Report? CONTENT: Avoid Unnecessary Applications Prior to Applying for Home or Auto Loan\n----------------------------------------------------------------------\nWhile a single hard inquiry on your credit report can cause a small, short-term decline in your credit score, it shouldn't have a major negative impact, especially if you have good credit. Having several hard inquiries for different types of credit in a short time, however, could cause a more significant dip in scores and cause lenders to worry that you are having financial difficulty or that you could become overextended.\nIf you're seeking a loan for a big purchase like a home or a car, first get a copy of your credit report and review it. Avoid applying for new credit until you apply for your mortgage or auto loan. And consider signing up for free credit monitoring—it will help you stay on top of your credit situation and can also help alert you to signs of fraud or identity theft, including unauthorized hard inquiries. END
 TITLE: How to Remove Hard Inquiries From Your Credit Report CONTENT: What Is a Hard Inquiry?\n-----------------------\nA hard inquiry occurs when you apply for a new loan or credit card. It involves the lender checking one or more credit reports to determine whether you meet its creditworthiness criteria. This is also sometimes called a hard credit check or hard pull.\nHard inquiries differ from soft inquiries in two major ways. First, hard inquiries occur when you apply for a loan, credit card or other financing.\nSoft inquiries, on the other hand, can happen upon your request—such as when you want to check your credit report—or even without your knowledge, which happens when lenders check your credit before sending you a preapproval offer.\nSecond, soft inquiries don't affect your credit score at all, while each hard inquiry typically knocks a few points off your credit score. The more hard inquiries you have on your reports, the riskier you'll be viewed by prospective lenders. Why? Because applying for different types of credit relatively often could indicate financial instability, and that translates to risk in a lender's eyes.\nHard inquiries stay on your credit reports for two years before they fall off naturally. If you have legitimate hard inquiries, you'll likely need to wait until the 24-month period is over to see them disappear.\nNot all hard inquiries impact credit scores. When you're rate shopping for an auto loan or mortgage, you may have several hard inquiries, as lenders check your credit to determine what terms and rate to offer. As long as you apply for the loans within a 14-day period (or sometimes slightly longer), credit scoring models will consider them as one inquiry. END
 TITLE: How to Remove Hard Inquiries From Your Credit Report CONTENT: Should You Remove Hard Inquiries?\n---------------------------------\nThe idea of removing hard inquiries from your credit report to improve your credit score may sound appealing. But disputing a genuine hard inquiry on your credit report will likely not result in any change to your scores.\nYou can, however, dispute ones that are a result of fraud. This can happen when an identity thief uses your Social Security number and other personally identifiable information to open a new account in your name.\nFor most people, that one extra hard inquiry may drop your credit score by just a few points temporarily, but new lenders likely aren't going to decline your application for credit just because you have hard inquiries on your credit report. While hard inquiries take two years to fall off your credit report, typically their impact to credit scores lasts just a few months.\nHowever, if you already have several hard inquiries on your credit report from the past couple of years or you have other, more serious, issues that are hurting your credit, one new inquiry could make it more difficult to get approved for a loan or credit card with favorable terms. END
 TITLE: How to Remove Hard Inquiries From Your Credit Report CONTENT: Disputing Inaccurate Hard Inquiries Yourself\n--------------------------------------------\nIt's important to check your credit reports regularly for accuracy. If, while doing this, you've noticed a hard inquiry on your credit report that you believe is the result of identity theft, you can file a dispute with each of the three national credit reporting agencies and petition to have them update the inaccurate information.\nThe first step is to review your Experian credit report through our Dispute Center and verify your information. Next, confirm that the inquiry was not a result of identity theft.\nThere may be situations where you don't recognize the name of a company that checked your credit or you don't remember applying for a loan with a company you do recognize. Here are a few scenarios when inquiries you don't recognize may be legitimate:\n*   You may have solicited a home repair and provided your Social Security number to the vendor, and they may have taken that as an authorization to check your credit for financing reasons.\n*   If you sought financing when you were shopping for a car, a dealership may have sent your loan application to multiple lenders to find you the most favorable interest rates. Multiple inquiries with company names that you don't recognize could show up from that time period. If they all fell within a window of a few weeks, they will be considered rate shopping and will only count as a single inquiry in credit score calculations.\n*   The same scenario could happen with mortgage applications. For example, you may have solicited mortgage rates online, where a website sent your application to multiple lenders to find you the best rate. Also, you may have worked with mortgage servicer who sent your application to a lender, and that lender may have checked your credit on behalf of the mortgage servicer.\n*   Another example when a hard inquiry may look like fraud involves store credit cards. National retail stores may use financial services companies for their store cards, and when inquiries are made, they may show up with company names you don't recognize. For example, if you apply for credit at Kay Jewelers, you may see an inquiry from \"Comenity Bank\/Kay\" on your credit report.\nIf you don't recognize the company name that performed the hard inquiry, contact the company for more information. When you check your credit report through the Experian Dispute Center, the hard inquiry will be accompanied by the company name and typically the mailing address and a phone number.\nIf you have verified that the hard inquiry is due to identity theft, then the dispute would be handled over the phone with Experian specialists. You can [register with](;op=FRCD-ASK-ART-102-MDL-XXXXXXX-XX-EXP-VWIN-DIR-817XXX-36112X-XXXXX) or [log in to our Dispute Center](;refUrl=disputeCenter) to find our support options. There is no charge to use this service.\nOnce you submit the request, you can track your progress through the Dispute Center. Generally, the dispute process will be done within 30 days. If the inquiry was found to be valid, it will not be removed from your credit report. However, if the investigation shows the inquiry was a result of identity theft, it will be removed from your report. END
 TITLE: How to Remove Hard Inquiries From Your Credit Report CONTENT: Check Your Credit Report Regularly\n----------------------------------\nIt isn't common to find inaccurate information on your credit report, but it can happen. To avoid letting fraudulent and other erroneous information go unchecked, make it a goal to check your credit report regularly. Review what's listed and watch out for anything you don't recognize.\nAlso keep an eye on your credit score (you can check your FICO® Score☉ for free with Experian), and watch out for sudden drops that could indicate fraudulent activity, such as a bogus account opened in your name that's gone unpaid.\nIt's not always possible to prevent identity theft, but as you keep track of your credit history, you'll be in a better position to stop a difficult situation from getting much worse. END
 TITLE: What to Know Before Getting a Retail Credit Card CONTENT: Store Credit Cards Have Higher Interest Rates on Average\n--------------------------------------------------------\nOne of the biggest downsides of store credit cards is that they usually charge much higher interest rates than other credit cards. The average credit card APR currently hovers around 17%, according to the Federal Reserve. But retail credit card APRs are far higher—as much as 10 percentage points higher or more—and they continue to increase annually. This means a retail card is a flat-out bad idea if you need to carry a balance since you'll pay dearly in interest.\nAlso, beware that some retailers promote credit cards with so-called 0% APR period offers to tempt you to sign up. Unlike a 0% intro APR card from a major credit card issuer, however, a store-only interest-free offer might require you to pay the full amount of deferred interest if you have any balance whatsoever at the end of the offer period. END
 TITLE: What to Know Before Getting a Retail Credit Card CONTENT: Retail Cards Can Impact Your Credit Score\n-----------------------------------------\nJust like any traditional credit card, a retail credit card can either harm or help your credit depending on how you use it. If you pay your bills on time and keep your balance as low as possible, this wise use of the card can help your credit score over time. If you keep the account open and in good standing for several years, it can give your credit a noticeable boost since longevity of accounts and on-time payments play a major factor in your credit score. If you haven't been able to qualify for a traditional credit card, getting a retail card and using it responsibly can be a great way to start building credit.\nOn the other hand, retail cards can also cause harm if used irresponsibly. If you make late payments, miss payments or carry a high balance (to the point that you're close to your credit limits), you can hurt your credit score. END
 TITLE: What to Know Before Getting a Retail Credit Card CONTENT: It's Easier to Qualify Even if You Have Bad Credit\n--------------------------------------------------\nOne big perk of retail credit cards: They can be easier to qualify for than traditional credit cards, especially if your credit isn't in great shape. The average FICO® Score☉ in the U.S. is 703, according to Experian data. While the average score for Americans who have both a retail card and traditional card is 728, the average score for those with only a retail credit card is 575. This data seems to show that store cards have less stringent credit requirements, so if you need access to credit or want to build your credit and can't qualify for a regular card, a store credit card could be a good option. END
 TITLE: What to Know Before Getting a Retail Credit Card CONTENT: Retail Cards Have Lower Credit Limits\n-------------------------------------\nAnother thing to be aware of before applying for a retail credit card is they typically have lower credit limits than traditional credit cards. This means if you carry a high balance, it might lead to a high credit utilization ratio, which is a measure of how much of your available credit you're using at any given time.\nIf your ratio is high, it looks riskier to lenders since you're using a large amount of your available credit, which may indicate you're struggling to pay down your debt. A credit utilization ratio above 30% will hurt your score, so keep it as low as possible (low single digits or zero if you can).\nIn addition to a relatively low credit limit, retail cards often carry higher fees than regular credit cards. Foreign transaction fees, cash advance fees and penalties might be higher than with a traditional card. END
 TITLE: What to Know Before Getting a Retail Credit Card CONTENT: Some Store Cards Can't Be Used Everywhere\n-----------------------------------------\nBefore you say yes to a store credit card, make sure you know where it is accepted. As mentioned, some retail credit cards can only be used when you shop at its issuing store. If you shop there frequently and the card comes with great discounts and perks, it could be worth it if you pay the card off every month. But if you need a credit card you can use everywhere, a store-only card won't help you.\nOther retail cards are co-branded, meaning they can be used like regular cards just about anywhere, but can still net you perks with the issuing retailer. Before you apply, make sure you understand which type of card you'd be getting. END
 TITLE: What to Know Before Getting a Retail Credit Card CONTENT: They Can Encourage More Spending\n--------------------------------\nStore credit cards can offer great benefits, especially for those who shop at that retailer frequently. These cards usually offer compelling sign-up benefits, and many provide ongoing cash back rewards, special discounts or other exclusive perks. But this can also work against you. Retailers know it's hard to turn down a good deal, so they offer these perks knowing it will likely lure you to spend more at their store. If you already have a tendency to overspend, be wary of store credit cards, since they might encourage you to spend more in pursuit of rewards and discounts. END
 TITLE: What to Know Before Getting a Retail Credit Card CONTENT: Check Your Credit Score First\n-----------------------------\nIf your credit score isn't great and you need a way to build or improve your credit but can't qualify for a regular card, getting a retail credit card can be a solid idea. But if you can qualify for a traditional card, that might be preferable since you'll likely enjoy a lower interest rate and lower fees. Not sure where your credit stands? Check your FICO® Score for free through Experian. END
 TITLE: Should I Sell or Trade In My Car? CONTENT: Find Out How Much Your Car Is Worth\n-----------------------------------\nThere are a lot of things that go into your vehicle's value. How old it is, how many miles it has, its condition, extra features and other factors can all help you set a reasonable price.\nIt's also important to note, though, that each car has two different values: One as a trade-in and one as a private-party sale. In virtually every case, your vehicle is worth more in a private-party sale than as a trade-in.\nThat said, the gap between the two values can vary, and depending on your car, you may not actually lose much by trading it in. Visit a website like Kelley Blue Book or NADA Guides to find out how much your car is worth. END
 TITLE: Should I Sell or Trade In My Car? CONTENT: When Should I Sell My Car Myself?\n---------------------------------\nHere are some situations where it makes sense to sell your car for cash instead of trading it in:\n*   You can make a lot more money on the sale.\n*   You have the time required to sell the vehicle.\n*   You have enough money for a down payment on your new car without needing to sell the old one first.\n*   If you traded it in, you'd get less value than what you owe on the vehicle.\nHowever, there are also some reasons to think twice about trying to sell your car on your own:\n*   You don't have the time to go through the sometimes lengthy process of selling a car.\n*   You're not experienced in negotiating, and you're worried about losing value to a savvy buyer.\n*   You don't have enough cash for a down payment on your new car.\nIf you decide to sell the vehicle yourself, you'll start by cleaning both the interior and exterior to make it ready for prospective buyers—if it's dirty, you could have a disadvantage during negotiations. Even spending the money on a full detail could net you more return on the sale. Next, you'll list the car on local classifieds and websites like Craigslist.\nOnce you start receiving calls, you'll need to take the time to answer any questions prospective buyers have and ride along on test drives when they come to see the vehicle. You'll also need to negotiate and be willing to be patient for the right deal.\nOnce you agree on a price and the buyer pays you, you'll need to sign over the title to the new owner if you have it. If you don't, you'll need to get payment from the buyer and use it to pay off your loan and request that the lender sign over the title to the new owner. END
 TITLE: Should I Sell or Trade In My Car? CONTENT: Trading in your car can be the right move in certain situations. Here are just a few examples:\n*   You don't have time or the desire to go through the private-party sale process.\n*   You don't have a down payment and can't afford the new car without one.\n*   You prefer the convenience the dealership provides.\n*   You're not worried about losing money by trading in your vehicle.\nThere are also some clear disadvantages to keep in mind. Here's when you should consider avoiding a trade-in:\n*   You'd lose a significant amount of money if you traded it in.\n*   You have time to go through the selling process and negotiate the best deal for yourself.\n*   You don't need extra money for a down payment on the new car.\nIf you decide to trade in your vehicle, make sure it's clean when you visit the dealership you want to buy a car from. Let the salesperson know you want to trade in your current vehicle, and they'll start the negotiation process. Do your research beforehand to understand the car's value and use that information to negotiate a better deal.\nOnce you've come to an agreement, the dealer will buy the vehicle, use the money to reduce the sales price of the new one, and if you have an auto loan, pay it off on your behalf. END
 TITLE: Should I Sell or Trade In My Car? CONTENT: Get Your Credit Ready for a New Car Purchase\n--------------------------------------------\nWhether you sell your old car or trade it in, it's important to build your credit before buying a new vehicle if you plan to finance the purchase. Interest rates can vary wildly, and if your credit score is in poor shape, it could cost you thousands of dollars. If this is the first time you're seeking an auto loan, research how to get a car loan before you apply.\nCheck your credit score to get an idea of your overall credit health, then review your credit report for more information on how you can take steps to improve. This process can take time, but the results of a lower interest rate can be worth it. END
 TITLE: Should You Buy Your Car When Your Lease Is Up? CONTENT: How Does a Lease Buyout Work?\n-----------------------------\nLike buying a car, leasing one typically involves making a large upfront payment and smaller monthly payments over the lease term (generally two or three years). The key difference is that a vehicle becomes yours when a loan is paid off, but you won't own a leased car when its lease is up. At the end of a lease, you return it to the lessor, who sells it through a dealership or at auction. They may also give you the option to buy it.\nA few months before your lease term ends, the leasing company will usually contact you to explain the end-of-lease process and schedule inspections before you turn in the car. This is a good time to start thinking about whether you want to buy your leased car. Don't tell the lessor your plans just yet, though—you'll need to do some research first.\nLease agreements typically list a purchase or buyout price. This cost is commonly a combination of the vehicle's residual value (the vehicle's projected end-of-lease value that's determined at the beginning of the lease) and a purchase option fee the leasing company may charge. Unfortunately, the lease payments you've made on the car don't go toward buying it, so you'll have to either come up with the cash on your own, or secure financing that covers the vehicle's buyout price. END
 TITLE: Should You Buy Your Car When Your Lease Is Up? CONTENT: Does buying your leased car make financial sense? Ask yourself these questions to decide.\n*   **Can you afford a cash buyout or will you need a loan?** Consider your budget and use an online auto financing calculator to estimate your car payments for various loan terms and interest rates. Since the vehicle you're buying is already a few years old, try to keep your loan term as short as possible. Longer loan terms mean lower payments, but you'll pay more in interest and could even end up with negative equity—that is, owing more on your loan than the car is worth.\n*   **Is the vehicle worth buying?** To see if the car is really worth the residual value listed on the lease, use the appraisal tools on Edmunds, Kelley Blue Book, NADA and other automotive websites. Research what local dealers and private parties are asking for the same make, model and year of car. Take the average of all those prices to come up with an estimate. If the car is worth more than the residual value projected at the start of your lease, buying it could be a bargain. If it's worth less, you may not want to buy it unless you can negotiate a lower buyout price.\n*   **What's the condition of the car?** If you've taken great care of the car and had few mechanical issues, you can buy it with more confidence. Counterintuitively, it might also make financial sense to buy a leased car with dents, scratched paint, torn upholstery or similar damage. When you turn in a leased vehicle with excess wear and tear, the lessor must fix it before selling it, and you'll pay the price. By purchasing it, you'll avoid this fee. You can always repair the damage later if it bothers you.\n*   **Did you exceed your mileage limits?** Leases commonly limit the number of miles you can drive every year without penalty. This limit is typically between 10,000 and 15,000 miles, but high-mileage leases are available. At the end of the lease, you'll be charged for every additional mile driven. If you exceeded your limit by 15,000 miles on a three-year lease with a $0.25 per mile fee, you'd be on the hook for $3,750 in excess mileage when you turn in the car. Buy the car and you won't have to pay.\nAlso consider any other savings or costs from buying a leased car. For example, you'll generally pay less for registration and insurance for an older car than a newer one. However, older cars are typically more prone to mechanical problems and need more maintenance than new ones, which could mean higher repair costs. END
 TITLE: Should You Buy Your Car When Your Lease Is Up? CONTENT: How to Pay for Your Lease Buyout\n--------------------------------\nOnce you've decided to buy your leased car, the next step is financing the lease buyout. Leasing companies and dealerships may offer to arrange financing, but you'll boost your bargaining power (and potentially save money) by getting preapproved for a car loan from a bank or credit union before you approach the leasing company.\nTo get the best financing offers, check your credit report and credit score several months before your lease ends. If your score is lower than you expected, improving your score before you shop for a loan can help you get a better interest rate.\nOnce your credit score is shipshape, you can start going over your financing options and submitting loan applications. It's wise to submit multiple preapproval applications to a variety of lenders to shop around for the best interest rate. Credit scoring systems generally treat multiple loan applications in a short period as one application, so submit all your applications within a two-week period and they'll be combined into one hard inquiry as far as your credit scores are concerned. Alternatively, getting prequalified for a loan will give you a ballpark idea of your financing costs without any impact to your credit. END
 TITLE: Should You Buy Your Car When Your Lease Is Up? CONTENT: Can You Negotiate a Lease Buyback Price?\n----------------------------------------\nDepending on the lessor, you may not be able to negotiate the price of your lease buyback. However, some leasing companies are willing to bargain to avoid the time and costs involved in reselling the car on the lot or at auction. Others may be willing to reduce the price if you finance the vehicle with them so they can keep you as a customer.\nUse the research you've gathered to show that the car's residual value is lower than that in the contract. If the lessor won't negotiate on price, see if you can get them to remove the purchase option fee. Are you preapproved for financing elsewhere? See if the leasing company will match or beat the offer. END
 TITLE: Should You Buy Your Car When Your Lease Is Up? CONTENT: To Buy or Not to Buy Your Leased Car\n------------------------------------\nYou may be crazy about your leased vehicle, but the decision to buy it when the lease ends should be based on more than just emotion. Carefully assess your budget, the car's condition and cost, and your financing options before you make the leasing company an offer. Whether you lease or buy your next car, maintaining a good credit score will make it easier to get favorable financing terms. END
 TITLE: What’s the Average Car Loan Payment? CONTENT: How Much Is the Average Car Payment?\n------------------------------------\nAuto loan debt and automotive monthly payments in the U.S. are both at all-time highs, according to recent data by Experian. Consumers have a total of $1.2 trillion in outstanding auto loans. The average car payment for a new vehicle is $554, and the average for a used car is $391.\nKeep in mind, though, these are averages—your car loan's monthly payment will differ depending on your loan amount. Understanding what to expect when financing a new or used car will be important as you determine whether you can afford it.\nThis is especially important if you're on a tight budget. If you'll soon pay off your car and you want to trade up, securing a similar monthly payment to the one you have may be the best way to avoid running into budgetary problems. If you have more cash flow now than when you got your current loan, you may have room for an upgrade.\nRegardless of the average car payment, take the time to look at your budget and decide how much you can afford before you start car shopping. END
 TITLE: What’s the Average Car Loan Payment? CONTENT: How Is a Car Payment Determined?\n--------------------------------\nThere are several factors that will determine your payment on an auto loan. Here's what goes into the calculation:\n*   **Size of the loan**: Knowing how much you're borrowing is key because it's the amount you'll be liable for paying back. Your loan amount is the price of the vehicle plus fees, tax and interest, minus your down payment amount and value of your trade-in, if applicable. Loan fees can include an extended warranty, vehicle service contract, maintenance, GAP coverage or other add-ons.\n*   **Length of the loan**: Your loan's repayment term determines how much time you have to pay back the debt. The shorter the loan's length, the higher your monthly payment will be. Conversely, a longer loan term—84-month loans are becoming more common—will result in a lower monthly payment. Just keep in mind that the longer your repayment term, the more you'll ultimately pay in interest over the life of the loan.\n*   **Credit score**: Your credit score provides lenders with a snapshot of your overall credit health, and essentially tells them how risky you are as a borrower. With a higher credit score, you're less of a risk to a lender, so you may qualify for a lower interest rate that will bring down your monthly payment. A low credit score can drive up your interest rate and, in turn, your monthly payment.\n*   **Income**: In addition to your credit score, lenders consider your ability to repay the loan when determining your interest rate. More specifically, they'll look at your debt-to-income ratio (DTI), which is the percentage of your gross monthly income that goes toward debt payments. The lower your DTI, the better your chances of securing a lower interest rate and monthly payment.\nLet's say you qualify for a $30,000 loan on a new car with a 3.74% interest rate over 60 months. Your monthly payment would be $549, and you'd pay $2,939 in interest over the life of the loan. If you were to extend your repayment term to 72 months, the monthly payment would drop to $466, but the total interest paid would jump to $3,538.\nNow let's say you manage to reduce the interest rate to 3.24% by putting down $5,000 but keep the term at 60 months. Your new loan amount would be $25,000, your monthly payment would be $452, and you'd pay $2,113 in total interest charges. END
 TITLE: What’s the Average Car Loan Payment? CONTENT: How to Get a Low Auto Payment\n-----------------------------\nAs you can see, making changes to the factors that go into calculating your car payment can affect not only how much you pay each month but also in total. The good news is that you have some control over all of the moving parts that go into determining your monthly payment.\nHere are some ways to get the right car payment for your budget:\n*   **Choose a less expensive car**: If your monthly budget would buckle with a $30,000 new car, you're better off with a car that costs $20,000 or even less. And remember, new cars can lose more than 10% of their value the minute you drive them off the lot. So if you're looking to save money but don't want a clunker, consider a used car that's still relatively new.\n*   **Put more money down**: The more you can knock down the loan amount, either with a bigger down payment or a trade-in, the less you'll have to finance and the lower your monthly payment will be. Avoid draining your savings for a bigger down payment, though. It's always a good idea to have cash set aside in case the car breaks down or you get slapped with another emergency expense.\n*   **Improve your credit**: If you need a new car right now, this option may not be available. But if you have the time, build your credit score to improve your chances of getting a lower interest rate and monthly payment.\n*   **Pay off debt**: A lower debt-to-income ratio can help improve your chances of getting a lower interest rate. If you have the money and the time, work on paying off some of your credit cards and loans to show lenders you have the capacity to take on and pay off more.\n*   **Ask for a longer repayment term**: Extending the repayment term on your loan will automatically reduce how much you have to pay each month. Just remember that a longer loan term equals higher interest charges, making it more expensive in the long run. If you can afford a shorter repayment term, that's usually the better option. END
 TITLE: What’s the Average Car Loan Payment? CONTENT: Think About How a Car Loan Fits Into Your Financial Plan\n--------------------------------------------------------\nThere's nothing wrong with borrowing money to buy a car. But if you have other financial goals you're trying to work toward, it's important to consider how an auto loan fits into your financial plan.\nFor example, if you're aggressively paying down high interest debt or saving for a down payment on a home, it may be worth buying a cheaper car or taking a longer repayment term for now to get a lower monthly payment. You may be able to trade the car in later on for an upgrade or refinance the car loan.\nLate or missed car payments will have a big effect on your credit scores, so if your income is unstable or you're not confident you'll be able to make on-time monthly payments over the life of your loan, financing may not be right for you.\nWhatever you do, take some time to think about how a new car loan will impact your immediate budget needs, as well as your long-term goals. END
 TITLE: What Is a Vehicle History Report and Do You Need One? CONTENT: What Information Is Included in a Vehicle History Report?\n---------------------------------------------------------\nA vehicle history report provides crucial information you can use to determine whether a used vehicle is worth the asking price or if it's even a wise purchase at all. Here are some of the more important details you'll typically find:\n*   **Accident history**: Vehicle history report providers gather data from government motor vehicle departments, law enforcement agencies, repair shops and insurance companies to create a list of any accidents involving the car. This may not include minor fender benders that don't get reported. If the vehicle suffered serious structural damage or airbag deployments, you may want to consider a different car. Even if a car has been deemed roadworthy, the car may never drive like new again, or be as safe if it's involved in a major crash.\n*   **Other damage**: If the vehicle suffered damage from other sources, such as a fire, vandalism, flood or hail, you'd likely find it in the history report. In some cases, it may not be an issue. For example, hail and vandalism typically don't cause lasting problems. But if the damage was due to a fire or flood, there could be lingering issues you'd have to deal with if you bought the car.\n*   **Title history**: A vehicle's title history can tell you a couple of things. First, it'll show you if the car has a salvage title—this happens when a car is totaled in an accident, but someone else comes along and repairs it for resale. Salvage title vehicles may have significant problems that could cost you hundreds or even thousands of dollars in repairs, so it's best to avoid them. Second, if you notice that the car was moved across state lines several times in a short period, it could be a sign that a previous owner was trying to clear certain negative information from the title.\n*   **Previous owners**: The vehicle history report will show how many owners the vehicle has had. Additionally, you'll be able to see when and where it was bought and sold. For example, you'll be able to see if a vehicle was used as a rental car when it was new. While it's not necessarily a deal-breaker if a vehicle has had many owners or was used as a rental vehicle, you may be able to use that information to negotiate on the price.\n*   **Mileage**: A vehicle's odometer gets reported at certain points in its life, such as when ownership changes. If the current odometer reading shows a lower number of miles than what's been reported in the past, that's a huge red flag. Rolling back odometers isn't as common as it was when mechanical dials were the norm, but it's still possible.\n*   **Service history**: The best clue you have to a used vehicle's potential longevity is how it was maintained. Not all mechanics report this information, but many do, and if the vehicle's maintenance information appears on its history report, you'll be able to compare it with the schedule recommended by the manufacturer. If you're buying from a private party instead of a dealership, consider asking for their service records to get a fuller picture. If they can only provide scant proof that the vehicle was regularly maintained, you may want to enlist the help of a mechanic to perform an inspection.\n*   **Recalls:**: Manufacturers issue recalls from time to time when they find that a factory part isn't working properly or was incorrectly installed. When this happens, the manufacturer typically covers the cost of fixing the issue. As a vehicle changes ownership, though, it becomes increasingly difficult for manufacturers to contact the current owner. So check the vehicle history report for any open recalls that haven't been addressed. END
 TITLE: What Is a Vehicle History Report and Do You Need One? CONTENT: How to Get a Vehicle History Report\n-----------------------------------\nIn some cases, the seller may purchase a vehicle history report to put their prospective buyers at ease. If they don't offer it themselves, ask if they have the report and if you can get a copy to review it.\nIf the seller doesn't provide one, though, there are a few places you can go to get a look at the vehicle history report. You'll need the vehicle identification number (VIN) to request the report. The U.S. Department of Transportation provides a free database of recalls by VIN, so you can start there.\nYou'll also want to request a report through Carfax or Autocheck. Both services will tell you how many records are to be found based on the VIN. But if you want specifics, you'll need to pay.\nIf you're not planning on shopping around for a vehicle, you can purchase just one vehicle history report. But if you think you'll want to compare your options, you can order reports for several vehicles at a discounted rate. END
 TITLE: What Is a Vehicle History Report and Do You Need One? CONTENT: Next Steps After Reviewing the Vehicle History Report\n-----------------------------------------------------\nOnce you've read through the vehicle history report on a used car, plan to ask a mechanic to perform a pre-purchase inspection. This typically costs between $100 and $200, according to J.D. Power. That may seem a little steep, but it could save you from buying a car that'll cost you far more in the long run.\nYou'll also want to take the vehicle for a test drive to get an idea of how it feels on the road and to potentially spot certain issues that crop up only when the vehicle is being operated.\nIf you're purchasing from a private party, you may also want to check the National Insurance Crime Bureau to make sure the car hasn't been stolen.\nWhen it comes to deciding on a fair price, take your time with the negotiation. It may help to use the information found in the vehicle's history report to give yourself some leverage. A spotty maintenance record, accidents or other issues could help you shave some money off the seller's asking price. Listen to your gut too. If the seller seems desperate to get rid of it or is otherwise trying to pressure you into making a decision, it could be a red flag. There shouldn't be any guilt associated with walking away if you don't feel right about the car in question. END
 TITLE: What Is a Vehicle History Report and Do You Need One? CONTENT: Make Sure Your Credit Is Ready for a Car Purchase\n-------------------------------------------------\nIf you're planning to finance your vehicle purchase, another way to maximize your savings over the life of your car is to build a good credit history. Auto loans are secured by the vehicle as collateral, so they tend to charge lower interest rates than, say, personal loans and other unsecured financing options.\nHowever, bad credit could result in an interest rate in the double digits—even as high as 20% or more. Good credit typically starts at a 670 FICO® Score☉ , but the higher yours is, the better.\nCheck your credit score before you start the car-buying process. If it's not where you want it to be, take some time to improve your credit. Depending on how much you increase your score, you could end up saving hundreds or thousands of dollars over the life of your auto loan. END
 TITLE: What Happens If You Defer a Car Payment? CONTENT: How Does Deferring a Car Payment Work?\n--------------------------------------\nUnder a car loan deferment, the lender agrees to let you pay a lower payment or no payment at all for a month—or two, or three, but probably not much longer than that—with the expectation that you'll be able to resume your regular payment schedule after the deferment ends.\nNot all auto lenders allow deferments, and those that do have different procedures for requesting them. Sometimes a deferment option is built into your loan agreement (in which case you might see a \"skip a payment\" option on the webpage where you make your payments or a \"skip payment\" slip in your payment coupon book). Other lenders require you to submit a written request, known as a hardship letter, in which you explain why you need the deferment and when you'll resume your regular payments.\nAlong with the hardship letter, your lender may ask for additional financial details (not unlike the information they probably required when you took out the loan), and they may also review your credit score and credit report. If your credit score has declined significantly since you got your car loan, or if your income or assets have dropped, the lender might decline to give you a deferment. If the lender agrees to the deferment, it will issue a forbearance agreement for you to sign—essentially a contract indicating when you will resume your regular payments, specifying any fees or penalties you'll be charged as part of the arrangement.\nA deferment may allow you to skip your payment altogether, or it may call for a reduced payment consisting only of the interest portion of your next scheduled payment. Either way, any skipped or reduced payments will be added on to the end of your repayment period, and interest will continue to accrue on the loan for those extra months, so that you'll have to pay significantly more than the amount of each deferred payment before your loan is repaid. In addition, you'll likely be charged a fee for each skipped payment, so a deferment is anything but a free pass. END
 TITLE: What Happens If You Defer a Car Payment? CONTENT: When Does It Make Sense to Defer a Payment?\n-------------------------------------------\nDeferring one or two car payments makes sense if you've experienced an emergency expense or temporary reduction in income that you know will be remedied within a short time—for instance, if you have a lull between the end of one job and the start of another. If you seriously doubt you'll be able to get your payments back on track after a month or two, you can use deferment to buy some time, but you'd probably be wise to use that interval to consider finding a less expensive ride.\nIf you can't get a forbearance agreement from your auto lender, or it becomes clear that you won't be able to resume your regular payment schedule after your authorized deferment period ends, consider selling the car. If you can get more for the car than what you owe on the loan, you may be able to put the surplus from the sale toward a less expensive vehicle (or a ridesharing service). END
 TITLE: What Happens If You Defer a Car Payment? CONTENT: Does a Car Loan Deferment Hurt Your Credit?\n-------------------------------------------\nIf you defer payment(s) with the lender's permission, either by exercising an option built into the loan agreement or by arranging a forbearance agreement, you'll be considered \"paying as agreed\" with respect to the loan. Your credit report will not reflect any delinquency as a result, and the deferment will not adversely affect your credit scores.\nIf you are in a situation where you're having difficulty paying your car payment, take care that you don't miss any other bill payments, because that certainly would have a negative impact on your credit scores. END
 TITLE: What Happens If You Defer a Car Payment? CONTENT: Alternatives to Car Payment Deferment\n-------------------------------------\n**Refinancing.** If your income is steady and you're simply finding your car payment too large to manage every month, one alternative to consider is refinancing your car loan—essentially taking out a new loan with smaller monthly payments. You'll likely only be able to do so if the car has retained most of its value, and your credit has remained as strong as it was when you took out your loan (or become stronger). Refinancing your loan to get smaller monthly payments will almost always mean extending the repayment period on the loan, adding to the overall number of payments and to the total cost of the loan. That could mean significant extra cost to you, but as an alternative to missing payments or defaulting on the loan, it could be well worth it.\n**Getting someone else to assume the loan.** This is a long shot, because most auto loan agreements expressly forbid it, but a select few lenders may work with you to help arrange the transfer of your loan to another person. In fact, this involves the lender issuing a new loan to the transferee, so the person assuming payments must be willing and able to take over payments at least as large as those you're making and have credit as good or better than yours to qualify for loan terms comparable to yours. If you want to go this route and you have a potential transferee in mind, make sure you know their credit score (and that it's comparable to yours), and then contact the lender before any funds trade hands to make sure you can proceed.\n**Voluntary surrender.** No one wants it to come to this, but if all else fails, or if the car is worth less than what you owe on it, you may have to consider turning it over to the lender in a process known as voluntary surrender. This is essentially forfeiting the car before the lender repossesses it. Because a voluntary surrender is a failure to repay your car loan, it appears as a negative entry on your credit report and likely will lower your credit score. It is considered less derogatory to your credit than a repossession, but it's still something you should try to avoid if at all possible.\nCar loan deferment is never an ideal scenario, but under circumstances where you just need a month or two of relief to get your payments back on track, it can provide some welcome room to maneuver. END
 TITLE: Do Hybrid and Electric Cars Really Save You Money? CONTENT: Does It Cost More to Purchase an Electric or Hybrid Model?\n----------------------------------------------------------\nThe cost of a new vehicle depends not only on the type of vehicle you buy but also on the model you choose. On average, here's how the monthly payments work out for each type of vehicle.\nSource: Experian State of the Automotive Finance Market Report, Q4 2020\nIn other words, switching to a hybrid car likely won't change your monthly loan payment drastically. But if you're considering going straight to an electric vehicle, you'll want to make sure your budget has enough room for a higher payment.\nThat said, car payments can vary widely depending on the make and model. For example, Tesla vehicles tend to be on the expensive side, with average car payments for the Model 3 and Model Y pegged at $725 and $735 per month, respectively. In contrast, a Chevrolet Bolt EV costs just $410 per month, on average. We go over the most affordable hybrid and electric vehicles here.\nIt's also important to note the potential tax breaks you can get with all-electric and plug-in hybrid vehicles. The federal government offers a credit worth up to $7,500, depending on the capacity of the battery in the vehicle and other factors. Some states offer additional incentives that could further drive down the cost of your vehicle purchase.\nThese credits won't necessarily cut your monthly payment, but you could use them to make additional principal payments to pay down the loan early, saving you time and money. END
 TITLE: Do Hybrid and Electric Cars Really Save You Money? CONTENT: What Are the Differences in Cost of Ownership?\n----------------------------------------------\nAs seasoned car owners know, the cost of owning a vehicle goes far beyond the monthly payment to your auto lender. You'll also need to consider fuel prices, electricity costs, repair and maintenance, insurance and more.\n*   **Electricity vs. fuel**: The University of Michigan Transportation Research Institute found that electric vehicles cost $485 per year to drive, compared with $1,117 for gas-powered vehicles. Just keep in mind that some areas may not have as many electric vehicle charging stations as others, so access should be a major consideration.\n*   **Repairs and maintenance**: Because electric and plug-in hybrid vehicles have fewer moving parts than completely fuel-powered cars, you can expect to spend about half as much on maintenance, according to a study by Consumer Reports—that's an average of $4,600 in savings over the life of the vehicle.\n*   **Insurance**: While an electric or hybrid vehicle can save you money in several ways, you can expect to pay more to insure one. According to a study by Self Financial, for instance, you'll pay $442 more per year to insure an electric vehicle compared with a gas-powered vehicle.\nKeep in mind that where you live has an impact on how much it'll cost to own an electric or hybrid model. Gas prices, insurance criteria and other factors that vary by location can all affect how much you have to pay for your new car.\nAccess to electric vehicle charging stations is another important factor to keep in mind. If you live in an area with several locations, you won't have to worry about going out of your way to charge your car's battery or running out on the road. But in some areas, and depending on how much you drive, you may need to spend more time and effort keeping your battery going.\nAccounting for all the ongoing costs of vehicle ownership is important: \"You know, insurance, registration, gas prices or potential charging costs,\" says Melinda Zabritski, Experian's senior director of automotive financial solutions. \"If it's an electric vehicle, do you have to have anything installed at your home for the charging?\" END
 TITLE: Do Hybrid and Electric Cars Really Save You Money? CONTENT: How to Decide Which Type of Car Is for You\n------------------------------------------\nChoosing between an electric or hybrid vehicle and a fuel-powered car may seem like an easy decision or a difficult one, depending on your situation and preferences. But there are several factors to keep in mind as you make your decision.\n*   **Feelings on gas emissions**: Many people switch to electric or hybrid vehicles because they care about the environment and want to reduce their contribution to the emissions that fuel-powered vehicles put out. Of course, going electric doesn't bring your emissions down to zero, as electricity can be produced from burning coal or gas, among other sources. But it can still make a huge difference, and if that's important to you, electric and hybrid vehicles offer a major advantage.\n*   **How you use your vehicle**: If you use your car primarily to commute, you'll need to consider the length of your commute, gas mileage on cars you're considering and gas prices in your area. If you go on a lot of road trips, you may find that electric vehicle charging stations are much less plentiful than gas stations. Also, if you spend a lot of time outdoors, including traversing dirt roads and rough terrain, the type of vehicle you need may not be available in electric or hybrid form.\n*   **Upfront costs**: While operating an electric or hybrid vehicle is typically cheaper over time, and you can receive tax credits for purchasing one, electric vehicles tend to be more expensive than gas-powered vehicles when comparing similar models. If you finance the vehicle, you can spread that extra cost over several years, but if you're making a down payment, it'll typically go further with a fuel-powered vehicle.\n*   **Convenience**: Electric charging stations are growing in number, and there are apps you can use to find ones close by wherever you are. But they're still not as plentiful as gas stations, so you may need to go out of your way to find them. What's more, it takes time to charge your vehicle. If you're on a long road trip, for instance, you may need to tack on several hours to your trip just to get to your destination. If you're using your car primarily to commute and can charge your car at home for most of your needs, however, this may not be an issue. END
 TITLE: Can You Pay More on Your Car Payment? CONTENT: How Paying Extra on Your Car Loan Payments Works\n------------------------------------------------\nBefore you schedule that extra payment on your car loan, you need to find out whether your lender applies the payments to your loan principal or to the interest.\nApplying extra payments directly to the principal (that is, the amount of money you borrowed) is ideal because it reduces both the amount you owe and your total interest. (The exception: If your loan has _precomputed interest_, meaning the total interest was calculated and fixed based on the term of your loan, you'll pay the same amount of interest no matter how quickly you pay off the loan.)\nHowever, many lenders don't apply your extra payment amount directly to the principal. Instead, they'll apply it first to the additional interest accrued since your last payment, and only then to the principal.\nWhat if you make a whole extra payment instead of just adding a little bit more to your monthly payment? Unfortunately, many auto lenders will treat this as an early payment of your next bill instead of applying it to the principal.\nIf you want to make sure the extra payment will be applied directly to your loan principal, find out exactly what your lender requires to do so. You may need to specify your wishes in writing, check a box online or even mail your extra principal payments to a different address. END
 TITLE: Can You Pay More on Your Car Payment? CONTENT: Benefits of Paying More on Your Car Payment\n-------------------------------------------\nThere are a couple of reasons you might want to pay extra on your car payment each month.\n*   **You'll pay less interest overall.** If you have a 60-month, 72-month or even 84-month auto loan, you'll pay quite a bit in interest over the loan term. As long as your loan doesn't have precomputed interest, paying extra can help reduce the total amount of interest you'll pay.\n*   **You'll pay off your loan faster.** The faster you can pay off your loan, the sooner you'll have extra cash to toward other needs, such as a down payment for your next car, paying off credit card debt or saving for your summer vacation. END
 TITLE: Can You Pay More on Your Car Payment? CONTENT: What to Consider Before Paying Extra\n------------------------------------\nBefore you pay extra on your car loan, however, it's important to consider these questions:\n*   **Does your lender allow extra payments?** Some auto lenders prohibit early repayment altogether. Others charge prepayment penalties, which can eliminate any savings from making extra payments. Check with your lender to find out what your loan terms allow.\n*   **Do you have other, higher interest debt?** In general, auto loan interest rates are fairly low compared with, say, credit card debt. For example, the average credit card interest rate is currently 17.86%, while the average interest rate for a 60-month new-car loan is 4.73%. If you have extra money, use it to pay down high interest debt before tackling low interest debt.\n*   **How will making extra car payments affect your budget?** Make sure the extra payments won't stretch your budget to the breaking point. If you end up short of cash, you might be tempted to put expenses on your credit card, creating high interest debt.\n*   **Could this money be put to better use?** Depending on your current needs and future plans, there may be more productive uses for your money than paying extra on a car loan. For instance, you might want to increase your 401(k) contribution, build up an emergency savings fund or start saving for a down payment on a home. END
 TITLE: Can You Pay More on Your Car Payment? CONTENT: How Paying More on Your Car Payment Affects Your Credit\n-------------------------------------------------------\nPaying more on your car loan affects your credit score—and not necessarily in a positive way. Here's what you need to know.\nIf you make an extra car loan payment once or twice, it probably won't impact your credit score at all. However, if you consistently make extra payments and pay off your car loan early, it can actually _hurt_ your credit score—especially if you're just starting to build credit, don't have many credit accounts or are trying to improve your credit score.\nOnce your loan is paid off, the account will be closed. Although closed accounts may show you successfully managed credit in the past, open credit accounts have a greater impact on your credit score because they show lenders how well you're managing credit in the present. Your credit score also takes into account how long you have been using credit, so if your auto loan is your oldest credit account, closing it can hurt your credit score.\nClosing your auto loan may also reduce your credit mix—that is, how many different types of credit you have. Car loans, mortgages and student loans are installment loans, meaning you borrow a fixed amount and pay it back in monthly installments. Most credit cards are revolving credit, meaning your payments are based on how much of your available credit you use. Having a diverse mix of both installment and revolving credit can help to boost your credit score. If your car loan is your only installment loan, it's better to keep it open than to close it early. Learn more about what affects your credit score.\nFinally, paying off your car loan could hurt your credit score if all of your other credit accounts have high balances. That's because credit utilization ratio (how much of your available credit you actually use) is a factor in your credit score. Find out more about how paying off a car loan early can hurt your credit score. END
 TITLE: Can You Pay More on Your Car Payment? CONTENT: Make the Smart Decision\n-----------------------\nAs you can see, there's a lot to consider before you decide to pay more on your car payments, including your lender's terms, your financial needs and your credit score. To check your credit mix, credit utilization ratio and credit history, you can get a free credit report from Experian. Once you've got the scoop about your credit score, you'll have a better sense of whether paying extra on your car loan is really a good idea. END
 TITLE: How to Adjust Your Budget for Permanent Work From Home CONTENT: How Working From Home Can Change Your Spending\n----------------------------------------------\nAccording to the Global Workplace Analytics Telework Savings Calculator, if employees who are eager and equipped to work at home did so just half of the time, the economic benefit in the U.S. would total over $700 billion a year. Employers would save on real estate, utilities, janitorial services, security, maintenance, paper goods and more. Meanwhile, workers could save between $2,000 and $7,000 a year in transportation and work-related costs.\nMoney isn't the only potential gain: The average remote worker in this scenario would gain back the equivalent of two to three weeks' worth of free time per year, simply by skipping the daily commute. Workday flexibility could also change the way workers approach child care, eldercare and even pet sitting.\nEvery person's situation is unique, but to put the shift into perspective, think about these common ways work-from-home employees may save and spend.\nIf you continue to work as a full-time employee, your home office expenses will not be tax-deductible. But if you become an independent contractor, you may be able to deduct some of your expenses. Switching to contract work will have additional impacts on your taxes and monthly expenses, though, so you may want to consult an accountant before taking this step. END
 TITLE: How to Adjust Your Budget for Permanent Work From Home CONTENT: Working from home is a significant lifestyle change, and your home economics will inevitably change with it. Creating a permanent work-from-home budget doesn't have to be about documenting the differences between your pre- and post-pandemic spending. Instead, focus on where you're spending now and what changes you can make to improve efficiency—and productivity.\n1.  **Track your expenses.** Saving money on commuting is nice in theory, but you may already be compensating with higher-than-usual spending in other areas. The only way to know where you stand is to look at the actual numbers. Use a spreadsheet, app or pen and paper to keep track of all your expenses and see how much more you're saving (or spending) each month.\n2.  **Look for new saving opportunities.** Some of the best savings may not be automatic. For example, eliminating your daily commute may save you money on gas, car repairs and maintenance. But the reduced mileage may also qualify you for a discount on your car insurance, provided you think to ask your insurance company. One step further: Now that you don't need to drive to work, can you sell your car and get by without it?\n3.  **Evaluate pandemic spending.** When COVID-19 restrictions were in full swing, maybe you felt you needed to stockpile groceries, order frequent takeout and subscribe to multiple streaming services. Now is a great time to re-evaluate your expenses and weed out unnecessary costs.\n4.  **Find room for spending that improves your work life.** Whether you pine for fast internet, a cleaning service, an ergonomic chair or noise-canceling headphones, some splurges really can make working from home more pleasant and productive. While you may not have the resources for everything you want, try to find funding for significant and affordable improvements. END
 TITLE: How to Adjust Your Budget for Permanent Work From Home CONTENT: What to Do With the Money You Save\n----------------------------------\nIf you do net a few dollars—or more—in savings with your new budget, what can you do with the money? Here are a few ideas to consider:\n*   Shore up your emergency fund: If COVID-19 taught us anything, it's that emergencies happen—and they can wreak havoc on your finances.\n*   Add to your retirement.\n*   Try your hand at investing.\n*   Pay down debt.\n*   Polish up your career skills: Develop a new skill set or get a degree or certification that will improve your opportunities going forward.\n*   Start a side business. In addition to a little extra money, you may have the time and the flexibility to get a side venture off the ground.\n*   Improve your home. Adding solar panels or upgrading to energy-efficient climate control could pay for itself in the years to come. Repairs and upgrades can add to the value of your home. END
 TITLE: How to Adjust Your Budget for Permanent Work From Home CONTENT: Should You Consider a Move?\n---------------------------\nAnother benefit of remote work is increased mobility. Without the need to drive to work every day, you might consider moving farther away. Maybe you can find a larger home, reduce expenses, move closer to family or explore a community where you've always wanted to live.\n**You may save money.** Move yourself—and your current salary—to a community with a lower cost of living, and you may be able to upgrade your home and your lifestyle.\n**Your move can be temporary.** You don't have to set down roots permanently—or at all. Try living in another country for a few months or a year. Rent a place in a new town so you can get the lay of the land before you buy a home. If you own your home, you may be able to rent it out instead of selling while you try out another location.\nBefore you move for good, ask yourself how likely it is that you'll be called back to the workplace. While many companies are enacting permanent work-from-home arrangements, these policies could change. If you're too far from the office, you may have to move back—or find another job. Also, what are your job prospects if you need to change jobs? Moving to a remote area may be appealing—and potentially money-saving—but if your current job falls through, will you be able to find another remote position or a local option?\nMoving is a big decision. If you've always wanted to try it, though, now may be your moment. Budgeting for your big move—and your life once your move is complete—is the key to a smooth transition. END
 TITLE: How to Adjust Your Budget for Permanent Work From Home CONTENT: Budgeting Helps You Map Out Success\n-----------------------------------\nWorking from home can bring about lasting gains, both in terms of your lifestyle and your finances. Just make sure you're realizing those gains and still working toward your long-term financial goals. Creating and adapting a budget can help you visualize your options, work through potential challenges and ultimately map out a plan for long-term success. Welcome home. END
 TITLE: What Is Budget Billing for Utilities? CONTENT: How Does Budget Billing Work?\n-----------------------------\nBudget billing allows you to pay a set amount for utilities, such as electricity and gas, each month. The service makes energy costs more predictable for consumers, despite fluctuations in energy usage as seasons change.\nWith a budget billing program, your utility company will review and average energy usage at your home for the past 12 or 24 months. If this information is unavailable, they will use figures from the last occupant's usage. The average monthly cost and anticipated energy prices are then used to calculate your new monthly bill under the budget billing plan, and you'll pay a set amount each month.\nOver time, your monthly payment could change as your utility company computes new averages. Some companies make adjustments quarterly, while others review usage and change the monthly billing amount annually if necessary. In either case, you will get a notification regarding the new bill amount and whether it will increase, decrease or stay the same.\nYou can sign up for budget billing by contacting your utility company online or by phone. Typically your account needs to be in good standing to be approved for the program. Your utility company may charge a small fee to enroll, and you will continue to make payments as usual—either online, by phone or by U.S. mail. If you fall behind on payments, you could be removed from the program. END
 TITLE: What Is Budget Billing for Utilities? CONTENT: Pros and Cons of Budget Billing\n-------------------------------\nThere are some benefits and drawbacks to consider before enrolling in budget billing.\n### Pros:\n*   **Makes your utility bills more predictable.** Budget billing gives you a set figure to work into your budget each month instead of waiting to find out what your charges are based on your usage. It can also reduce the possibility of late payment penalties or possible disconnection since you'll be able to more easily budget your payments.\n*   **Alleviates stress.** You won't save money on your energy costs overall by enrolling in a program, but you may avoid the stress of not knowing what your bill will be or whether you'll have enough funds to pay it. So, when temperatures spike or drop, you won't have to panic.\n### Cons:\n*   **Fees may apply.** Some utility providers charge a fee to use budget billing. Inquire with your utility provider's customer service department about potential startup and maintenance fees.\n*   **Potential overpayment or underpayment.** It's important to find out what will happen if your energy costs are more or less than your utility company predicts. If you use less energy than your utility company estimates, will you be credited, and when? On the flip side, if you get to the end of the year and you use more energy than the company predicted, you may owe money for overage. Be sure you understand exactly what is in the contract with your utility company.\n*   **Risk of elevated costs in the future.** If your new set payments make you feel freer with energy usage, you could end up with significantly higher payments in subsequent cycles. Review your monthly bills to monitor your household's energy consumption: Steep increases could mean you'll pay more in the future. END
 TITLE: What Is Budget Billing for Utilities? CONTENT: Is Budget Billing Right for You?\n--------------------------------\nIf you want a consistent utility bill each month, budget billing may be right for you. You can also take a do-it-yourself approach to budget billing without getting your provider involved.\nTo do so, take your last 12 bills, add them up, divide by 12 and allocate this amount each month in your spending plan. Set aside money in the months when your energy costs are lower so you'll be able to afford payments in the hot summer months or cold winter months when you crank the air conditioning or use the heater.\nIf you decide to give budget billing a try, be sure to read your statement each month to ensure you're being billed correctly, and know the details of the service so you'll be ready in the event you have to pay overage costs. Contact your utility provider right away if you don't understand your bill or notice any issues or discrepancies. END
 TITLE: What Is Budget Billing for Utilities? CONTENT: How to Increase Your Credit Score With On-Time Utility Payments\n---------------------------------------------------------------\nWhether or not you enroll in budget billing, your on-time utility payments could help improve your credit history. Consider signing up for Experian Boost™† to get credit for your on-time utility bills payments, as well as phone and streaming service payments. It's free and could possibly increase your credit score immediately.\nIf you experience financial hardship and can't pay your bill on time, contact your utility provider right away. They may be open to working out a payment arrangement to help you avoid late fees, penalties and disconnections. Doing so could also prevent your account from being sent to collections and potentially damaging your credit rating. END
 TITLE: How Much of a Down Payment Should You Make on a Car? CONTENT: There's no one-size-fits-all answer for how much of a down payment to make on a car. Key factors that drive how much you should put down include whether you're buying a new or used car, along with what your credit situation is. END
 TITLE: How Much of a Down Payment Should You Make on a Car? CONTENT: How Big a Down Payment Should I Make if I Have Bad Credit?\n----------------------------------------------------------\nIf you've got a low credit score, it can be very helpful to come up with as much cash as you can for the down payment. Why? This will reduce the size of the loan you'll need to cover the cost of the car, which brings down the lender's risk. If a lender is more comfortable taking you on as a borrower, you may have an easier time getting approved for financing, and could be offered better terms, including a lower interest rate. END
 TITLE: How Much of a Down Payment Should You Make on a Car? CONTENT: Why Should I Make a Larger Down Payment?\n----------------------------------------\nThere are several great reasons to make a larger down payment on a car. They include:\n*   **Lower monthly payments**: When you make a larger down payment, the size of your loan will be smaller. Compared with a loan with the same terms but a smaller down payment, your monthly payments will be lower.\n*   **Shorter loan term**: A larger down payment could remove the temptation to stretch out your loan over a longer period in an effort to reduce monthly costs. For instance, with a larger down payment, you might pick a 48-month term rather than a 60-month term. A shorter term means you won't have the debt for as long, and a larger down payment can keep your monthly payment down.\n*   **Less interest**: With a larger down payment and shorter loan term, you'll pay less in interest charges over the life of the loan.\nMaking a larger down payment can have many benefits, but when trying to figure out the right amount for you, be sure not to drain your savings accounts for the sake of the above benefits. It's key to keep enough money in your bank account to act at least as an emergency fund. Depleting your assets can also set you back in your progress toward other financial goals, such as a down payment on a house. END
 TITLE: How Much of a Down Payment Should You Make on a Car? CONTENT: How to Save for a Down Payment\n------------------------------\nYou can take many approaches to saving up for a down payment. Here are four of them:\n1.  Create a budget. Establishing a spending plan gives you a better handle on your income and spending, and gives you a better idea of where you can carve out money for a down payment.\n2.  Set a goal. Let's say you want to make a down payment of $2,500. If you map out a strategy for what you'll need to do and how long it'll take to get there, it'll be easier to reach the $2,500 goal line. If you can set aside $200 a month, it'll take a little more than a year to save up enough for your down payment, so either plan your vehicle purchase around that or try to accelerate your saving if you can't wait that long.\n3.  Cut spending. Dialing back on big purchases, dropping unused memberships and trimming your clothing budget are among the ways you can decrease spending and increase the amount of money to set aside for a down payment.\n4.  Reduce the use of credit cards. Putting away your credit cards, at least temporarily, can lower your debt load. This can leave more money to put away for a down payment.\nYou might even pursue all four of these strategies to save for a sizable down payment. You may also borrow money from a friend or family member, take on a second job, sell your old car or sell other belongings. If you don't think you're able to save enough, you might consider looking for cheaper driving options.  \nHow to Lower Your Monthly Car Payment\n-------------------------------------\nIf your goal in making a larger down payment is to reduce your monthly costs, making a bigger down payment isn't your only option. Explore doing the following:\n1.  Bump up your credit score. A higher credit score can lead to a lower interest rate and, therefore, a lower monthly car payment. A credit score below 600 might mean an interest rate of around 11% or more on a new car, while a credit score of at least 750 could land you an interest rate in the 4% range, according to Experian's State of the Automotive Finance Market for the second quarter of 2020. If you check your credit score and don't like what you see, you can take steps to improve it such as paying your bills on time, chipping away at your credit card balances and catching up on past-due payments.\n2.  Shop around for auto loans. Check with various lenders, including banks and credit unions, to see who might offer the best lending terms (including an attractive interest rate). With that information in hand, ask the car dealership whether it can offer a better financing deal.\n3.  Lower your expectations. So, you've got your eye on a fancy brand-new sports car. Well, getting behind the wheel of that ride might come at a steep price. Maybe you can buy that car if you settle for the base model without any of the bells and whistles. Or perhaps you can settle for a less costly but perfectly fine new model that will still get you where you need to go. Or you might even choose a top-quality yet lower-priced used car.\nThe Bottom Line\n---------------\nScraping together money for a down payment might feel like a roadblock to buying a new or used car. But whether you decide on a down payment of 10%, 20% or another amount, you can make sure the road toward that new or used car is smooth. How? By shifting into high gear when it comes to setting aside money for the down payment, monitoring your spending and keeping on top of your credit. END
 TITLE: How Much of a Down Payment Should You Make on a Car? CONTENT: How to Lower Your Monthly Car Payment\n-------------------------------------\nIf your goal in making a larger down payment is to reduce your monthly costs, making a bigger down payment isn't your only option. Explore doing the following:\n1.  Bump up your credit score. A higher credit score can lead to a lower interest rate and, therefore, a lower monthly car payment. A credit score below 600 might mean an interest rate of around 11% or more on a new car, while a credit score of at least 750 could land you an interest rate in the 4% range, according to Experian's State of the Automotive Finance Market for the second quarter of 2020. If you check your credit score and don't like what you see, you can take steps to improve it such as paying your bills on time, chipping away at your credit card balances and catching up on past-due payments.\n2.  Shop around for auto loans. Check with various lenders, including banks and credit unions, to see who might offer the best lending terms (including an attractive interest rate). With that information in hand, ask the car dealership whether it can offer a better financing deal.\n3.  Lower your expectations. So, you've got your eye on a fancy brand-new sports car. Well, getting behind the wheel of that ride might come at a steep price. Maybe you can buy that car if you settle for the base model without any of the bells and whistles. Or perhaps you can settle for a less costly but perfectly fine new model that will still get you where you need to go. Or you might even choose a top-quality yet lower-priced used car. END
 TITLE: Types of No or Low Down Payment Mortgages CONTENT: Loans That Require No Down Payments\n-----------------------------------\nNearly all mortgages require at least some money down, but there are two exceptions:\n### VA Loans\nEligible veterans, service members and surviving family members can utilize VA loans, which are partially guaranteed by the U.S. Department of Veterans Affairs. They're offered via private lenders, but this type of government-backed loan typically requires no down payment, and offers lower closing costs and interest rates than conventional loans. The VA doesn't set a minimum credit score, but lenders have their own borrowing criteria.\nUnlike some other low down payment mortgages, VA loans require no mortgage insurance.\nHowever, there's a one-time VA funding fee paid upon closing (some borrowers are exempt). The amount depends on several factors, and for first-time VA loan borrowers, it ranges from 1.4% to 2.3%.\n### USDA Loans\nCreated by the government to make homeownership more accessible for Americans in eligible rural areas, USDA loans require no down payment and can be used to build, rehabilitate or improve properties. These loans are intended for primary residences only and have other income and property restrictions. USDA loans have no minimum credit score, though alternative sources may be required to verify that you have a history of making payments on time if your score is below a certain threshold.\nUSDA loans come in two forms: direct from the USDA, or via a private lender (and USDA-backed):\n*   **Direct USDA loans** are for low or very low income borrowers only, who don't currently have access to \"decent, safe and sanitary housing.\" This program offers payment assistance to temporarily lower the cost of a mortgage.\n*   **USDA-backed loans** are issued by private lenders, who set the interest rates. These are for low to moderate income homebuyers, without a requirement for need. These are also 100% financed, meaning zero down payment, with no mortgage insurance required. END
 TITLE: Types of No or Low Down Payment Mortgages CONTENT: Loans That Allow Low Down Payments\n----------------------------------\nIf you're not eligible for loans that don't require down payments, there are plenty of options with low down payments:\n### FHA Loans\nDown payments for these government-backed loans are as low as 3.5%. FHA loans are insured by the Federal Housing Administration and typically have lower closing costs—and credit score requirements—than conventional loans. There's a 580 minimum FICO® Score☉ for the lowest down payment option, though credit scores can be as low as 500 as long as you put at least 10% down. It must be for a primary residence, and there are some additional restrictions on property type and value.\nThese loans still carry closing costs, though they can be rolled into the loan amount. Additionally, FHA loans require mortgage insurance to reduce risk to the lender. Your upfront mortgage insurance premium is usually 1.75% of the loan amount. You'll also have an ongoing annual mortgage insurance premium (paid monthly) that usually costs between 0.45% and 1.05% of the loan amount. With conventional loans, mortgage insurance typically disappears once you hit 20% equity; with FHA loans, however, it remains for the life of the loan unless you put down at least 10%; then it goes away after 11 years.\n### Freddie Mac Mortgages\nGovernment-sponsored agency Freddie Mac offers a few products via mortgage lenders. The Freddie Mac Home Possible mortgage allows down payments starting at 3% and is geared toward low income homeowners. Even borrowers without credit scores are eligible to borrow with as little as 5% down. Mortgage insurance is required on single-family homes until 80% equity is reached, though coverage requirements can be reduced at 90%. This type of loan allows down payment and closing costs to come from a variety of sources, and it permits co-borrowers to contribute even if they won't reside at the home.\nFreddie Mac also offers HomeOne for first-time homebuyers buying single-family homes with down payments as low as 3%. Mortgage insurance required, and at least one borrower must have a credit score.\n### Conventional Loans\nSome lenders also offer conventional loans with low down payments. One example is Wells Fargo's Dream. Plan. Home. mortgage that permits down payments as low as 3%, and has flexible credit and income standards (though mortgage insurance is required). Other lenders allow for lower down payments on conventional loans, but those options may be reserved for borrowers with strong credit scores. END
 TITLE: Types of No or Low Down Payment Mortgages CONTENT: Do You Need Good Credit for a Low Down Payment Loan?\n----------------------------------------------------\nYou don't necessarily need a good credit score to get a mortgage with a low down payment. Conventional loans often do require solid credit scores, especially if you want a lower down payment. You'll typically need at least a 620 FICO® Score, and potentially a score of 660, to qualify for a conventional loan. Plus, the better your credit, the better terms you can qualify for.\nBut some no or low down payment loans, like FHA loans, have lenient credit score requirements in order to be more accessible.\nEither way, it's smart to get your credit mortgage-ready, taking steps to reduce debt and paying bills on time. Also, keep an eye on your credit score and report in the months leading up to your mortgage application to ensure there's nothing that could harm your chances of approval. For the time being, avoid any new applications for credit unless it's necessary, as loan applications can lower your credit scores or even cause a mortgage lender to rethink your application if you're already in the middle of the approval process. END
 TITLE: Types of No or Low Down Payment Mortgages CONTENT: What Are Your Other Options?\n----------------------------\nIf you can't qualify for these loans or meet down payment minimums, here are some strategies to consider:\n*   **Seek out down payment assistance programs.** These are offered by charities or government agencies for homebuyers struggling to afford down payments. They come in various forms, such as grants that don't need to be repaid, 0% interest forgivable loans and savings matching programs. Down Payment Resource has a database of these programs.\n*   **Take more time to save.** Consider staying put so you can spend more time saving for a larger down payment.\n*   **Look for additional income.** Find additional work to accelerate your down payment savings. If this isn't possible, aim to tighten your budget to free up funds you can put toward your down payment.\n*   **If you have time, make an effort to improve your credit.** Look over your credit reports from all three credit bureaus. You can get copies of those reports for free through AnnualCreditReport.com. You can also get your free credit score and credit report through Experian to see where you currently stand, and make efforts to drive that score up, such as decreasing existing debt balances. Improving your score will open the door to more mortgage opportunities—and, potentially, your new home. END
 TITLE: How Much Should I Save for a Down Payment? CONTENT: How Much Do You Need for a Down Payment?\n----------------------------------------\nThe more cash you put down, the smaller the loan you'll need and the less interest you'll pay. Plus, lenders like to see down payments of 20%, since it may demonstrate that you have strong cash flow and the ability to save consistently over a period of time.\nBut in reality, a 20% down payment is often difficult for homebuyers to come up with—and may not even be necessary.\n### Do You Need to Have a 20% Down Payment?\nLet's start with the benefits of a higher home down payment, which are substantial. With 20% down, you'll have access to:\n*   **A cleaner path to loan approval**: You increase your chances of mortgage approval with a bigger down payment, as lenders will likely view you as a good saver, and thus a lower credit risk.\n*   **Lower mortgage rates**: Since a higher down payment reduces your loan-to-value ratio, or the loan amount compared with the home's value, you can usually get lower interest rates from lenders. Any hike in the amount of a home down payment lowers loan-to-value ratio while also reducing risk to the lender.\n*   **You'll likely pay off your mortgage sooner**: The more cash you can put down, the lower your loan amount. That makes it more likely you can pay off your entire mortgage sooner, saving you interest and letting you build equity more quickly.\n*   **A lower monthly mortgage payment**: A larger home down payment cuts your monthly mortgage bill, leaving you with extra cash for other financial considerations, like college or retirement savings.\n*   **No mortgage insurance**: By steering more cash into a home down payment, you can avoid paying private mortgage insurance (PMI). When you put less than 20% down, your lender will likely require you to pay PMI, which it may charge as an upfront free or as part of your monthly payment. This protects the lender if you can't pay your mortgage. Private mortgage insurance can be pricey—up to 1% of the entire loan amount on an annual basis, in many cases. On a $200,000 home loan, that means almost an extra $200 per month saved by not having to pay PMI.\n#### What Is the Average Down Payment?\nDespite the advantages of making a down payment of 20%, it's common for buyers to put down less. The median down payment among all homebuyers in 2018 was 13%, according to the National Association of Realtors. First-time buyers put a median of 7% down. Repeat buyers put down the most, at 16%.\n1 Realtor.com, 2 NAR\n#### What Is the Minimum Down Payment?\nWhile down payment obligations vary from lender to lender, and primarily depend on your credit health and debt-to-income ratio, most traditional loans require at least 5% down.\nHomebuyers, especially cash-strapped first-time buyers, have additional options, though. For example, conventional loans are available through traditional lenders for less than 5% down. U.S. Federal Housing Administration (FHA) home loans are easier to get than traditional loans and require the borrower to put down only 3.5% of the home's value. If you're a veteran or service member, you could pay 0% down and no private mortgage insurance for a home loan through the U.S. Department of Veterans Affairs.\nPlus, many states and municipalities have first-time homebuyer programs that provide down payment assistance. Contact your state's housing finance agency to find out about programs in your area.\nWhen you're considering the minimum down payment you're willing to make, think through whether putting less down is a reflection of your readiness to buy a home. While it's possible to obtain a loan with little to nothing down, you should still have savings on hand before purchasing a home and the income to pay your mortgage as well as the other costs of owning a home. Using money from your retirement savings or your emergency fund for a down payment or ongoing expenses is a sign you should spend more time saving to prepare yourself for buying and owning a home. END
 TITLE: How Much Should I Save for a Down Payment? CONTENT: Coming up with the cash for a home down payment can seem difficult, especially when you're aiming for close to 20%. Here's how to get there.\n*   **Set a goal**: Start thinking far in advance about when you hope to become a homeowner, get an idea of your likely purchase price, and save accordingly. If homes in the area you're interested in sell for about $300,000, and you'd like to buy in five years, making a 20% down payment ($60,000) would mean saving $1,000 a month until then if you're starting from scratch. If that seems impossible, consider saving for longer or aiming for a smaller down payment—and calculate how much you could pay in private mortgage insurance as a result.\n*   **Cut spending**: Once you have a goal in mind, conduct an inventory of your current spending. Check whether you pay for subscription services or memberships you don't use, shop around for car insurance to see if you can get a better deal, and negotiate down your cable bill. Saving on big purchases, like opting for a used car rather than a new one, will make the biggest dent while you're working toward a down payment.\n*   **Create an ongoing budget**: After you've done an initial inventory, start tracking your spending, even if that means keeping an eye on categories, like entertainment, meals out and personal care, rather than every single purchase. Many apps will let you link your checking or credit card accounts so you can see what you're spending on. Choose a budget guideline to follow, like the 50\/30\/20 budget, which suggests spending no more than 50% of your take-home income on necessities, no more than 30% on wants, and 20% or more on savings and debt payoff. Regularly look for opportunities to cut back on wants, for instance, so you can reallocate money to savings.\n*   **Automate savings**: An automatic transfer from your checking to savings account is the easiest way to ensure you save regularly for a down payment. For many buyers, opening a high-yield savings account—offered by many online lenders—is a good option. You'll get a higher interest rate than a checking or traditional savings account would provide, but you won't take on the risk of investing your money. Investing could mean your savings lose value if the stock market dips before you plan to buy a home.\n*   **Leverage the power of gifts**: There's no shame in getting help from a relative or another source to make a down payment, and both conventional and government loans allow for gift funds.\nTo properly document gift funds, both the borrower and the donor have to sign a gift letter, provide evidence such as a bank statement showing the donor had the ability to gift the funds, produce a copy of the check from the donor, and document the deposit of the check into the borrower's account.\n*   **Shop around for a mortgage**: Consider multiple mortgage and down payment options when you're searching for a loan. Make sure you're aware of all the government-backed loan programs and state and local homebuyer assistance programs you may qualify for. If you're feeling overwhelmed by the options, a U.S. Department of Housing and Urban Development-approved housing counseling agency could be a good place to start. Local counselors can connect you with resources on the homebuying process in your area. END
 TITLE: How Much Should I Save for a Down Payment? CONTENT: The Bottom Line\n---------------\nWhile 20% may be the ideal, there's no one-size-fits-all down payment—especially considering how many homebuyers put down less. Instead, after looking into your mortgage options, local assistance programs and personal savings, opt for a down payment that will make home ownership possible while also giving you the flexibility to meet other long-term goals. END
 TITLE: Can You Use a Personal Loan as a Down Payment? CONTENT: Conforming conventional loans, as well as FHA loans, do not allow homebuyers to use personal loans as down payments. Even if you find a lender and type of loan that doesn't explicitly forbid it, using a personal loan as a down payment may still not be an option. There are a couple reasons for this.\nWhen applying for a mortgage, the lender will take a deep dive into your financial life and pay close attention to how your debt relates to your income. They'll look at your recent pay stubs and pull your credit report to calculate what percentage of your gross monthly income goes toward debt payments—something known as your debt-to-income ratio (DTI). This involves looking at all recurring monthly debt payments, from credit cards to student loans to auto loans. Personal loans are on the table as well.\nMortgage lenders generally require a DTI that's less than 43% (or 36% for some lenders). Taking out a new personal loan to use as a down payment will nudge your DTI upwards, which will likely be a red flag to lenders. In some cases, it might increase your DTI enough to put you over the eligibility threshold and disqualify you as a mortgage borrower. It could also suggest that you may not be in the best financial position to buy a home. Either case makes it unlikely that a lender will accept a personal loan as a down payment.\nInstead, lenders will want to see that you've got enough money available in your bank accounts to cover your down payment. All large deposits—including funds that come in from a personal loan—will need to be verified and substantiated. END
 TITLE: Can You Use a Personal Loan as a Down Payment? CONTENT: Alternatives to Using a Personal Loan as a Down Payment\n-------------------------------------------------------\nIf you're worried you won't be able to squirrel away an adequate down payment, take heart in knowing that many people buy homes putting down much less than 20%. In fact, the median down payment for first-time homebuyers in 2019 was just 6%, according to the National Association of Realtors. Even those who don't have their target amount saved up just yet may still have options for buying a home. Consider the following personal loan alternatives. END
 TITLE: Can You Use a Personal Loan as a Down Payment? CONTENT: How Will Getting a Personal Loan Affect My Credit?\n--------------------------------------------------\nTaking out a personal loan prior to applying for a mortgage, even if you don't plan to use it for a down payment, can affect your credit in both positive and negative ways. Since the account will show up on your credit report, making on-time payments every month can help your credit score (while making late payments will hurt it). If you use a personal loan to consolidate revolving credit card debt, you'll reduce your credit utilization ratio, one of the most important credit scoring factors—and, in turn, likely improve your credit score.\nIn general, it's wise to hold off on applying for new loans and credit during the mortgage application process. Doing so will result in a temporary dip in your credit score since it triggers a hard credit inquiry. It's also adding to your debt load, which could work against you when applying for a mortgage. You want your credit to be in the best shape possible when you apply, so this is an important factor to consider. Here are some other action items that can help strengthen your credit before approaching mortgage lenders:\n*   Check your credit report and credit score to know where you stand and dispute any inaccurate information.\n*   Pay down credit card debt.\n*   Continue making timely payments on all your accounts.\n*   Consider getting preapproved for a mortgage so you know how much house you can afford. END
 TITLE: Can I Buy a Car With No Money Down? CONTENT: Down Payment vs. No Down Payment: What's the Difference?\n--------------------------------------------------------\nFew of us can pay cash for a vehicle upfront, so whether or not you're making a down payment, you'll likely be using an auto loan to finance your purchase. However, keep in mind that when you buy a car, you're not just paying the price of the car. There are additional costs, such as state taxes and registration fees. The dealership may also charge documentation and transportation fees.\nIf you don't make a down payment, these fees get rolled into the amount you're financing. If you're buying a $25,000 car with zero down payment, for example, you might end up financing $28,000 when all the taxes and fees are added in.\nUnfortunately, as soon as you drive your new car off the lot, it begins to depreciate in value—typically by as much as 20% in the first year. If you finance $28,000, and the $25,000 car depreciates by $5,000 when you drive it off the lot, you now have a car worth $20,000 . . . but you owe $28,000 on it.\nWhen you owe more than your vehicle is worth, that means you're \"upside down\" on your loan—which is not a good place to be.\nMaking a 20% down payment helps ensure that even when depreciation is taken into account, you won't owe more than the car is worth. In addition, making a down payment can help you get better loan terms. END
 TITLE: Can I Buy a Car With No Money Down? CONTENT: Even a Small Down Payment Could Help\n------------------------------------\nA 20% down payment is ideal, especially if your credit is less than perfect. However, any size of down payment, no matter how small, will help to reduce your total loan costs and monthly payments.\nSuppose you want to buy a car that costs $20,000 with no down payment. With a 60-month loan at 5.13% interest, you'll have monthly payments of $415. Throw in a $1,500 down payment, however, and your monthly payments go down to $387.\nWhat if you don't have any money saved for a down payment? Sometimes you need a new car unexpectedly due to problems with your old car. Good news: Your old car can be part of your down payment as long as you have car equity.\nCar equity means your trade-in vehicle is worth more than you owe on it. If you own your car free and clear and the car is worth $2,500, you have $2,500 of car equity. If you owe $1,500 on your car loan but the car is worth $4,000, you also have $2,500 of car equity ($4,000 - $1,500).\nAdd a trade-in worth $2,500 to your $1,500 down payment, and you have a down payment of $4,000 (20% of the new car's total cost). With a 20% down payment, your monthly payment for the same loan goes down to $340—a significant difference. END
 TITLE: Can I Buy a Car With No Money Down? CONTENT: How to Get a Car With No Down Payment and No Trade-In\n-----------------------------------------------------\nIf you don't have a down payment or a trade-in, you can still get a new car as long as you have a good credit score. (If you're not sure what your credit score is, you can get a free score to find out.)\nTo help reduce your loan costs, start by shopping around for a car loan before you ever visit a dealership. Contact at least three banks and credit unions to see what loan terms you can get. When you find a good offer, get preapproved for a loan. After you fill out a preliminary application, the lender will give you an estimate of how much money they're likely to lend you and the interest rate they will charge. Being preapproved for a car loan does not obligate you to get a loan, but it can give you more negotiating power at the dealership. END
 TITLE: Can I Buy a Car With No Money Down? CONTENT: Alternative Car Financing Options\n---------------------------------\nMany people default to financing a new car through the dealership just because it's easy. However, third-party financing from a bank or credit union almost always offers better terms than dealer financing. If you've investigated third-party financing options and still can't afford the new car you want, consider these alternatives:\n*   Look for a cheaper car.\n*   Delay buying a car until you save up a down payment. (You can also use this time to work on improving your credit score, if necessary.)\n*   Buy a used car. Since used cars have already depreciated, you can put down a small down payment without the risk of being upside down on the loan.\n*   Get a cosigner on your car loan.\nWhile zero-down financing may sound tempting, it's generally not the wisest way to finance your new wheels. Buying a new car with no down payment can saddle you with higher monthly payments. Even worse, you could end up owing more than the car is worth. Instead of using zero-down financing, consider other options for getting the car you want at a price you can really afford. END
 TITLE: Are 100,000-Point Intro Bonus Offers Worth It? CONTENT: What Are 100,000 Points Worth?\n------------------------------\nAt first glance, 100,000 points might sound like a lot. However, what 100,000 points are worth can vary dramatically depending on the type of points and even the specific credit card you carry.\n*   **Some points have fixed values.** Some credit card rewards have a fixed value, meaning each point is worth a set amount. For instance, Ultimate Rewards points earned with the Chase Sapphire Preferred® Card are worth 1.25 cents apiece when redeemed for travel through Chase. So you'd get $1,250 worth of travel through Chase with 100,000 Chase Ultimate Rewards points.\n*   **The value of points can depend on how you redeem them.** Even with points that are redeemable at fixed rates, including Capital One miles and Chase Ultimate Rewards points, those fixed values can change based on how you redeem them. You can transfer both Capital One miles and Chase Ultimate Rewards points to various airline and hotel partners. You can also opt for statement credits toward non-travel purchases and your value will vary.\n*   **Airline miles should be worth about 1 cent each.** Although airline frequent-flier miles can be worth vastly different dollar amounts depending on how you redeem them, you should aim to get around 1 cent per mile in value. A credit card intro bonus of 100,000 miles, such as the one sometimes available with the British Airways Visa Signature® Card (earn 100,000 Avios after you spend $5,000 on purchases within the first 3 months of account opening), should net you something like $1,000 in value.\n*   **Hotel points are generally worth less than 1 cent each.** Hotel credit cards extend intro bonuses of 100,000 or more points more frequently than other types of rewards cards. Unfortunately, hotel points also tend to be worth less than 1 cent apiece these days. To take a quick example, the Hilton Honors American Express Surpass® Card is currently offering 130,000 Hilton Honors bonus points after you spend $2,000 on purchases in the first 3 months. That's more points than this card has ever offered before. But considering Hilton Honors points are typically worth around half a cent each toward award nights, 130,000 of them would only be worth around $650. Terms apply to American Express offers.\n*   **Take advantage of limited-time offers.** Many 100,000-point credit card intro bonuses are only available for a limited time, so you should apply while you can if there's one you find appealing. The Chase Sapphire Preferred® Card has previously offered new cardholders 60,000 bonus points after spending $4,000 in the first 3 months. However, its intro bonus is currently 100,000 points after spending $4,000 in the first 3 months—and those additional 40,000 points would be worth an extra $500 toward travel. For its part, the Platinum Card® from American Express previously offered 60,000 Membership Rewards points after spending $5,000 on purchases in the first 3 months. For a limited time, though, new cardmembers can earn 100,000 Membership Rewards points after spending $6,000 on purchases in the first 6 months (terms apply). Not only do you have twice as long to complete just a little more spending, but you could earn a full 40,000 more points than usual, which Amex's points calculator values anywhere from $200 to $400.\nEarning 100,000 points as part of a credit card intro bonus can be a great way to boost your rewards. But just how much value you can get from those 100,000 points will depend on the card you apply for and how you redeem those rewards. END
 TITLE: Are 100,000-Point Intro Bonus Offers Worth It? CONTENT: What to Consider Before Opening a New Card for an Intro Bonus\n-------------------------------------------------------------\nIt might be tempting to fill out an online form and hit that \"Apply\" button when there are 100,000 points potentially waiting in the wings. It's key, however, to first look at the bigger picture and think beyond the welcome offer. Be sure to consider a card's fees, spending requirements and financing terms before opening a new card with the intention of earning an intro bonus.\n*   **Can you afford the annual fee?** Credit cards with the best intro bonuses tend to be premium products that charge annual fees. The Chase Sapphire Preferred® Card, for example, has a $95 annual fee, while The Platinum Card® from American Express has a $695 annual fee. Before you think about opening a credit card, make sure you can afford its annual fee and that you will get enough value out of the card to justify paying the fee year after year.\n*   **How much do you need to spend to earn the bonus?** Although some rewards credit cards offer introductory bonuses just for signing up and making a single purchase (and paying the annual fee), most require you to spend a certain amount of money within a specific time frame. It's unwise to spend just for the sake of earning a bonus, so make sure you can meet its requirements without changing your spending habits and are able to pay your balances off on time and in full each month before opening any new card.\n*   **What interest rates will apply to your purchases?** Introductory 0% APR offers are available on some cards, but the types of cards that field 100,000-point welcome offers typically have a variable APR right off the bat. The Chase Sapphire Preferred® Card's APR is a variable 15.99% to 22.99%, for instance. If you wind up carrying a balance from month to month, you'll incur interest charges on your purchases, which can easily negate the value of any reward points you earn.\n*   **At what rate will you earn rewards?** Beyond a card's intro bonus, it's important to maximize its ongoing earnings. Many credit cards earn bonus rewards in specific categories, such as dining or gas. Look at your month-to-month expenses and pick a credit card that earns the most points on the things you typically spend money on.\n*   **How much are the points worth?** Think about how you will use your bonus points and make sure that you are getting a good value from them. If your card's intro bonus is 100,000 points, aim for around $1,000 in value. END
 TITLE: Are 100,000-Point Intro Bonus Offers Worth It? CONTENT: Should You Try to Earn A 100,000-Point Bonus?\n---------------------------------------------\nEven if you know you want to earn a 100,000-point credit card intro bonus, you should make sure it's worth the effort and within your means. A 100,000-point bonus might be good for you if:\n*   **You can qualify.** Credit cards that offer 100,000-point intro bonuses tend to be highly selective about the applicants they approve. In general, you'll need good to excellent credit and a healthy financial profile to be considered.\n*   **You don't have to overspend to earn a bonus.** The cardinal rule of applying for a new credit card is that you should be able to meet its spending requirements without stretching your finances. If the annual fee is too high, or the minimum spending conditions will be difficult for you to fulfill, wait until your circumstances have improved. Otherwise, you might wind up damaging your credit with late payments and high balances.\n*   **You will use the rewards and perks.** Finally, make sure you'll be able to redeem those 100,000 bonus points for something you want. After all, it doesn't help to earn airline miles if what you really want are hotel points for free stays. Or maybe you'd get more use out of cash back rewards than hotel points. Just make sure you're earning the type of rewards you need and will use.\nWhen a credit card you want posts a 100,000-point intro bonus, it can be tempting to apply immediately. But before you do, take the time to think about the types of points you want, whether you can meet the spending requirements and how a new card will fit into your financial outlook. You can find current credit card offers and personalized options through Experian CreditMatch™. END
 TITLE: Can You Combine Credit Card Accounts? CONTENT: How Combining Credit Card Accounts Works\n----------------------------------------\nAlthough card issuers don't really advertise it, many allow customers to combine credit card accounts. Doing so is different from opening or closing a card, and can be worthwhile in a number of ways.\nCombining credit card accounts means that you consolidate your line of credit if you have several credit cards from one issuer onto the one or two cards you choose to keep open. Let's say you have four cards with one bank but are finding the annual fees too high or the payment schedules too complicated to manage. You can call your issuer and ask to combine your accounts but keep your total credit limit from all the cards rather than simply closing the cards you no longer want and losing out on their credit limits.\nIf you wish to consolidate two or more credit card accounts, they must be with the same issuer. For instance, you could ask to combine your Chase Sapphire Preferred® Card and Chase Freedom Unlimited® accounts since they are both Chase cards. But you couldn't combine your Chase Sapphire Preferred® Card and Capital One Venture Rewards Credit Card since they are different issuers.\nJust because you want to combine credit card accounts doesn't mean your issuer will allow you to do so. The bank will take stock of your overall financial profile, your credit usage and payment record, and other factors to make a decision. If you have not managed your credit cards responsibly (such as carrying large balances, making late payments, and opening and closing accounts frequently), your issuer might suggest closing the account you no longer want once it is paid off in full, rather than allow you to combine your accounts.\nIf you do decide to combine your credit card accounts, it's important to ask your issuer to uphold or even raise your combined credit limit so as not to impact your credit score. Let's say you have two cards with the same bank—one with a $5,000 limit, and the other with a $10,000 limit. When you consolidate your accounts, ask to keep your entire $15,000 limit (or perhaps even go higher). If your total credit limit is reduced when you combine cards, this could cause your credit utilization ratio to rise and hurt your credit scores. END
 TITLE: Can You Combine Credit Card Accounts? CONTENT: Benefits of Combining Credit Cards\n----------------------------------\nThere are several benefits of combining credit card accounts.\n*   **Tracking your finances**: More credit cards means more balances to track and more statement dates and deadlines to juggle. By consolidating your credit cards, you can manage your spending and payments more easily, which can also reduce your risk of accidentally missing a payment and racking up late fees and interest.\n*   **Lowering your annual fees**: Combining credit cards can also help you avoid paying annual fees on the ones you don't keep. That's an especially good strategy if there are cards with benefits you are not using to their fullest.\n*   **Preserving your credit score and limit**: Unlike simply closing a credit card, combining your accounts will usually preserve your total line of credit with the issuer, as well as the average age of your accounts. It's important to do so because those are two key factors in determining your credit score.\n*   **Fewer cards, more spending power**: By combining your credit limits from several accounts onto a single card, you can boost your spending power with the one you keep, and make it easier to charge large purchases.\n*   **Consolidated payments**: Combining credit card accounts is also a chance to merge balances you might be carrying with your various cards and concentrate on paying down the outstanding amounts. END
 TITLE: Can You Combine Credit Card Accounts? CONTENT: Drawbacks of Combining Credit Cards\n-----------------------------------\nBefore you reorganize your wallet, beware the drawbacks of combining credit cards.\n*   **Missing out on special financing**: Make sure you keep the card with better financing options (fewer fees on balance transfers, lower APR on purchases and the like) so you don't end up paying more for these options if you need them.\n*   **Balance transfer charges**: Let's say you are carrying a balance on the card you wish to close when combining it with another account. If you want to take advantage of a balance transfer in order to move your payments to the card you're keeping, make sure you understand any fees the transfer will incur—such as 5% or 3% per transaction (or $5, whichever is greater)—since they can add up fast depending on how much money you're moving around.\n*   **Losing rewards and perks**: Some credit cards offer specific rewards or benefits that others do not. Let's say you combined the Chase Sapphire Reserve® with the Chase Freedom Flex℠ and only kept the latter. After doing so, you would no longer be able to transfer your Ultimate Rewards points to the Ultimate Rewards program's 10 airline and three hotel partners. Plus, those points would be worth just one cent apiece (rather than 1.5 with the Chase Sapphire Reserve®) when redeemed toward travel booked through the Chase Ultimate Rewards portal. You would also lose out on benefits like up to $300 in annual travel statement credits each anniversary year and the ability to register for Priority Pass Select membership and access to over 1,200 airport lounges worldwide with the Chase Sapphire Reserve®.\nIn the same vein, if the two cards you combine don't participate in the same rewards program (even if they're from the same issuer), you could end up losing any rewards you've earned but haven't yet used from the card you get rid of. END
 TITLE: Can You Combine Credit Card Accounts? CONTENT: How Does Combining Cards Affect Your Credit?\n--------------------------------------------\nA common misconception about combining credit card accounts is that it will magically lift your credit score. That's because some folks think the number of credit cards you carry negatively impacts your score. However, factors like how much of your credit you are using and whether you are making payments on time are much more important. In fact, carrying more cards and having a higher overall credit limit can help your credit score if you manage the cards responsibly and keep balances low. END
 TITLE: First Progress Platinum Prestige Secured Card: Low Interest Credit CONTENT: Credit-Building Potential Is the Primary Benefit\n------------------------------------------------\nThe First Progress Platinum Prestige Mastercard® Secured Credit Card does one thing well: It helps you build your credit history so you can take advantage of better credit cards and loans with lower interest rates in the future.\nThere's no requirement for a minimum credit score or credit history, so this card may be easier to get than a traditional unsecured credit card. You'll need to make a secured deposit of at least $200 to open this card, and however much you deposit will be your new credit limit. First Progress will hold on to this deposit until you close your card, after which it'll return your deposit—assuming you've paid off the card completely.\nFirst Progress will also report how you're using your credit card every month to each of the three credit bureaus (Experian, TransUnion and Equifax), which can help increase your credit scores over time as long as you use the card responsibly and pay your bill on time every month.\nThe rules of managing your credit card well are the same as for any credit card:\n*   Always pay your credit card bill on time.\n*   Pay off your credit card balance in full every month, if possible.\n*   If you must carry a balance, keep it as low as possible.\nIf you can do these things consistently with this credit card, you can be well on your way to a better credit score. You can track your score over time with Experian. END
 TITLE: First Progress Platinum Prestige Secured Card: Low Interest Credit CONTENT: Is the First Progress Platinum Prestige Mastercard® Secured Credit Card Right for You?\n--------------------------------------------------------------------------------------\nThe First Progress Platinum Prestige Mastercard® Secured Credit Card is a good choice if you're looking to build your credit while carrying a balance on your card. Still, keep your balance as low as possible. A high balance can lower your credit score, and that would negate the purpose of getting the card in the first place.\nIf you don't plan on carrying a balance on your card, you might consider a secured card that doesn't have an annual fee so you can keep it open longer without having to pay. Especially good would be one that allows you to trade up to a regular unsecured credit card as your credit improves. END
 TITLE: How Credit Card Issuers Classify Purchases for Bonus Rewards CONTENT: What Are Merchant Category Codes?\n---------------------------------\nMerchant category codes can include groupings like restaurants, airlines, telecommunications services and more. The IRS even publishes a full listing of merchant category codes to help consumers understand which businesses tend to fall into which categories.\nAside from simple classification purposes, credit card issuers use merchant category codes for a variety of reasons, including tracking customer behavior, tax reporting and determining if certain purchases are eligible to earn bonus points.\nIn general, merchants are responsible for reporting their own category code to issuers, but ultimately it's up to the card company to determine which category a merchant falls under. If you find that you did not earn bonus points at a merchant where you think you should have, you might be able to call your credit card and ask for a correction.\nBut you don't necessarily need to drill down to the specific merchant category code of every business you patronize. In fact, it might be better not to do so. For example, Citi publishes its merchant category codes, and if you look for restaurants, they're actually under \"miscellaneous stores,\" which won't tell you much about how your purchase will code rewards-wise. Instead, review the rewards FAQ page for your bank and follow the categories listed there. END
 TITLE: How Credit Card Issuers Classify Purchases for Bonus Rewards CONTENT: The major credit card issuers—American Express, Bank of America, Capital One, Chase, Citi and Discover—each have their own system of classifying purchases. They mostly line up from issuer to issuer, but there might be some discrepancies. It's always best to look at the terms and benefits of your specific credit card.\nHere are some of the biggest bonus categories, and what types of businesses are typically included in each.\n### Dining\nDining might comprise anything from sit-down restaurants to cocktail bars, and even food delivery services, depending on the issuer.\nFor instance, if you have Capital One SavorOne Cash Rewards Credit Card, you can earn 3% cash back on dining, which includes:\n*   Restaurants\n*   Cafes\n*   Bars\n*   Lounges\n*   Fast-food chains\n*   Bakeries\nOn the other hand, if you have the Chase Sapphire Preferred® Card, you can earn 3 points per dollar on dining, which encompasses:\n*   Sit-down or eat-in dining\n*   Fast-food restaurants\n*   Fine-dining establishments\n*   Delivery services that classify themselves as a restaurant\nThere are two major differences to note for these issuers: Capital One makes no reference to delivery services (though many, like DoorDash and Grubhub, do in fact code as dining), and Chase won't count bakeries for bonus earning on dining. So if you have both of these cards, it's better to use the Capital One SavorOne Cash Rewards Credit Card for any bakery purchases, and the Chase Sapphire Preferred® Card for takeout and delivery, just to be safe.\n### Travel\nIf you have a card that earns bonus rewards for travel in general, or for specific types of travel transactions (like hotel bookings or airfare), just check with your issuer before making any large purchases.\n### Groceries\nMost issuers tend to count your average grocery store or supermarket, and even some smaller markets in this category. The only major exclusions to be on the lookout for are large chain stores that aren't primarily for groceries, such as Walmart and Target, which are deemed ineligible by Capital One and Chase, for example.\nAmerican Express sometimes stipulates that only U.S. grocery store purchases are eligible for bonus rewards, so don't expect extra earnings if you're stocking up on supplies beyond the U.S. borders.\n### Gas\nMore than simply what you purchase at the pump, a gas category can also encompass things you buy in a station's store, such as snacks and drinks. Most standalone gas chains should count.\n### Streaming\nThis category has become more popular for bonus rewards since the pandemic months when folks were locked down at home and craving entertainment. Given the preponderance of streaming services, you'll need to check your specific card's reward terms and conditions to see which ones are included and which aren't.\nFor example, with the Capital One SavorOne Cash Rewards Credit Card, purchases earn 3% back on streaming services including Hulu, Netflix and Disney+ among others. But there are some major exclusions, like Amazon Prime Video and Verizon Fios On Demand, as well as some audiobook and fitness programming subscriptions. END
 TITLE: How Credit Card Issuers Classify Purchases for Bonus Rewards CONTENT: How to Maximize Bonus Rewards\n-----------------------------\nTracking the categories where your credit cards may earn bonus rewards is important for earning the most points, miles or cash back possible on every purchase. Here's how to maximize your credit cards' bonus rewards categories.\n### Focus on Cards With Good Bonus Categories\nThe first thing to do is make sure you have cards that offer bonus earning on the types of things you spend the most money on, whether that's groceries and gas or travel and dining. At least one of your credit cards should earn extra rewards in one or two of your major expense areas.\n### Use Multiple Credit Cards\nIf you have more than one main credit card, pair your products so you earn bonus rewards at even more types of merchants.\n### Leverage Limited-Time Opportunities\nDuring the pandemic, we saw certain credit cards begin to offer limited-time opportunities to earn bonus points on new or changing categories. For example, the Chase Sapphire Preferred® Card usually earns 2 points per dollar on travel, 3 points per dollar on dining, and 1 point on everything else. For a few months, though, it also earned 2 points per dollar on up to $1,000 per month in purchases at grocery stores.\nOther cards, like the Chase Freedom Flex℠, regularly earn bonuses on quarterly rotating categories. From July to September 2021, for instance, its bonus categories—which earn 5% back—include:\n*   Grocery stores (excluding Walmart and Target)\n*   Select streaming services, including Disney+, Hulu, ESPN+, Netflix, Sling, Vudu, FuboTV, Apple Music, SiriusXM, Pandora, Spotify and YouTube TV\nThat's in addition to the card's regular rates of 5% cash back on travel purchased through Chase and 3% at drugstores and dining at restaurants. You'll also earn 5% cash back on grocery store purchases (not including Target or Walmart) on up to $12,000 spent the first year. You'll earn 1% on all other purchases. By paying attention to the card's temporary categories and hitting that spending threshold, you can earn as many as five times the rewards as on other everyday purchases. END
 TITLE: How Credit Card Issuers Classify Purchases for Bonus Rewards CONTENT: The Bottom Line\n---------------\nUnderstanding how credit card issuers classify purchases for bonus rewards is imperative if you hope to maximize your earning. By using the right cards for the right purchases, you can rack up rewards even faster, all with little or no effort. Paying off your bill every month will ensure you get the full value out of your rewards (by not paying interest on a balance).\nGo over the terms and conditions of earning with any rewards credit cards you carry, and review your statement each month to make sure you're earning the bonus rewards you deserve. Also check out Experian CreditMatch™ to find personalized credit card suggestions to meet your needs and habits. END
 TITLE: How to Use Your Credit Card’s Concierge Service CONTENT: What Is a Credit Card Concierge?\n--------------------------------\nCredit card concierges are customer service representatives who can step in to handle cardholders' day-to-day needs and demands. While they may not be able to do anything you can't do for yourself, they can still save you a lot of time by taking some busy work off your hands.\nCredit card concierges are on call to take care of things a personal assistant would, like helping you book flights, finding that perfect gift for a professional engagement or tracking down items you might have lost while traveling.\nMost concierge services are provided by specific families of cards within larger networks, such as Visa Signature or Visa Infinite products or certain World Mastercard and World Elite Mastercard products. Some are provided directly by credit card issuers, such as American Express or Citi.\nIf your card features concierge service, you should receive information about it with the initial benefits package when you apply. However, you can always just ring up customer service and ask what services are available with your specific cards. The concierge service itself is free (or included in your credit card's annual fee), but you still have to pay for anything you purchase through them. END
 TITLE: How to Use Your Credit Card’s Concierge Service CONTENT: How to Get the Most out of Your Card's Concierge Service\n--------------------------------------------------------\nCredit card concierge services available through your card issuer, payment network or bank can be accessible via phone, email, a specific webpage or an app. You can ask your credit card concierge to do any number of tasks, including ones you might not have thought of. Here are the main types of requests they cover:\n*   **Travel plans**: Credit card concierges are usually able to search for and reserve flights, hotels, other types of transit and even book activities and excursions. They're basically like a travel agent in your back pocket.\n*   **Restaurant reservations**: Heading to a new city and don't know where to eat? Your credit card concierge can pull up recommendations and make reservations for you. They might even be able to score a table at an eatery that appears booked up to the general public.\n*   **Event tickets**: Some credit card issuers have deals with agencies that sell tickets to major events like concerts and sporting events, so they may be able to get you preferred seating or spots in an arena that is otherwise sold out.\n*   **Personal shopping**: They won't send a personal assistant to follow you around a department store—but if you need to locate a hard-to-find item for yourself, or a gift for someone else, your credit card concierge can do the legwork tracking it down. What's more, they can probably arrange to purchase it and have it shipped or delivered wherever you like.\n*   **Lost and found**: Ever left something behind in a hotel room? Your credit card concierge can contact the property for you and make sure they look high and low for your lost item and then return it to you.\n*   **Search for services**: Need to find a store selling Danish antiques? Looking for the best pet spa in your area? Your credit card concierge can comb through listings for you and find the best-rated businesses in your area.\n*   **What they can't do**: Credit card concierges are veritable superstars, but don't ask them for services like booking medical assistance, tracking down classified information or running errands in person. END
 TITLE: How to Use Your Credit Card’s Concierge Service CONTENT: Which Cards Offer Concierge Service\n-----------------------------------\nYou don't necessarily need to carry a high-priced card to enjoy concierge service—though it couldn't hurt. Here are some cards that include concierge service as a benefit. END
 TITLE: How to Use Your Credit Card’s Concierge Service CONTENT: Should You Get a Credit Card With a Concierge?\n----------------------------------------------\nHaving a personal assistant at your fingertips sounds great, but the credit cards that include this type of benefit tend to be ultra-premium and carry high annual fees. Before opening one of them, think about whether you'll derive enough value from its other benefits to justify paying for it. Not only that, these cards also usually require you to have a good credit score, so make sure your score is good enough to qualify. Before applying for a new credit card, check your credit score for free.\nCalling on a credit card concierge can be a tremendous benefit when you need help either at home or on the road and don't have time to do your own research or make your own bookings. If your card includes such a benefit, call your issuer to ask what kinds of services they provide and then take them out for a test drive the next time you have a request they may be able to assist with. For personalized credit card suggestions, including those with concierge services, try Experian CreditMatch™. END
 TITLE: How to Save Money on Flights CONTENT: Plan Your Trip Early\n--------------------\nWhen it comes to planning your trip, the early bird gets the best deals.\nThe major airlines usually load their flight schedules nearly a year in advance. If you can plan that far in the future, you might find good airfares before flights start booking up. But this is no guaranteed way to save, and you also run the risk of schedule changes down the line.\nAccording to Hopper, an airfare prediction app, your best chance of securing the lowest airfares are between 25 and 150 days before travel, so you don't have to be the world's most organized planner to score a bargain.\nThe so-called \"prime booking window\" for many international destinations was between just two and four months out, according to the most recent Annual Airfare Study by travel booking site CheapAir.com. Certain places, like Europe and Africa, were subject to deals even further in advance, so it won't hurt to start looking as early as possible. END
 TITLE: How to Save Money on Flights CONTENT: Stay Flexible on Travel Dates and Times\n---------------------------------------\nAirfares fluctuate not only by season, but also by days of the week, and even times of day. So stay flexible on travel dates and times to secure the best flight deals. END
 TITLE: How to Save Money on Flights CONTENT: Compare Flight Prices\n---------------------\nBefore you purchase tickets, do a little comparison shopping, and pay attention to any price changes on the flights you're interested in booking.\nThird-party websites like Skyscanner and Google Flights allow users to track airfares over periods of time. Using calendar searches, you can get an overview of price fluctuations by weeks and months, and then see if there are certain dates, times, or even specific airlines and alternative airports where you can fly and save money.\nYou might be able to save some cash by setting an airfare alert on a site like Kayak too. Log in to your account and enter parameters such as origin and destination, specific dates or months, and whether you prefer to fly nonstop. You can also just set your search to \"flexible\" with a price range, and see what comes up. If airfares go down after you perform your search, the site will notify you and you can book at that point. END
 TITLE: How to Save Money on Flights CONTENT: Pay With an Airline Credit Card\n-------------------------------\nAirline credit cards provide some great ways to save money on flights.\n*   **More rewards**: Though it's not instant savings, many airline cards accrue bonus points or miles on flights with their carrier that you can use for a reward ticket in the future. For example, the Southwest Rapid Rewards® Plus Credit Card earns 2 points per dollar spent on Southwest purchases, but just 1 per dollar on all other purchases. So by using it to pay for your flights with the airline, you can earn double your rewards compared with other purchases.\n*   **Companion tickets or discounts**: Some airline credit cards offer discounted companion tickets or flight credit vouchers that can save you money.\n*   **Checked bag discounts**: One of the best benefits any airline credit card can offer is saving you money on checked bags. The Delta SkyMiles® Platinum American Express Card is among the most generous in this respect. Cardholders plus up to eight companions on the same reservation traveling on Delta are eligible for a fee waiver on their first checked bag each. Terms apply. That amounts to savings of $30 per person, each way. So if you were a family of four traveling together, each with a checked bag, you could save $240 on a round-trip journey.\n*   **In-flight savings**: Now that many airlines make you pay for things like meals and drinks as well as Wi-Fi, you might want to carry a credit card that offers a discount on them. The Southwest Rapid Rewards® Priority Credit Card, for instance, rewards cardholders with 20% back on in-flight purchases made with the card for drinks and Wi-Fi in the form of a credit card account statement. It's not a huge amount, but every dollar counts! END
 TITLE: How to Save Money on Flights CONTENT: *   **More rewards**: Though it's not instant savings, many airline cards accrue bonus points or miles on flights with their carrier that you can use for a reward ticket in the future. For example, the Southwest Rapid Rewards® Plus Credit Card earns 2 points per dollar spent on Southwest purchases, but just 1 per dollar on all other purchases. So by using it to pay for your flights with the airline, you can earn double your rewards compared with other purchases. END
 TITLE: How to Save Money on Flights CONTENT: *   **In-flight savings**: Now that many airlines make you pay for things like meals and drinks as well as Wi-Fi, you might want to carry a credit card that offers a discount on them. The Southwest Rapid Rewards® Priority Credit Card, for instance, rewards cardholders with 20% back on in-flight purchases made with the card for drinks and Wi-Fi in the form of a credit card account statement. It's not a huge amount, but every dollar counts! END
 TITLE: How to Save Money on Flights CONTENT: Join Frequent-Flyer Programs\n----------------------------\nIt's easy and free to sign up for airline frequent-flyer programs, and doing so can help you save on flights.\n*   **Promotions and discounts**: Airlines often send emails to mileage program members with deals and discounts for flights from their home cities when fares go on sale. This way they can be among the first to access cheap tickets.\n*   **Earning award miles**: These days, airlines are posting award sales with tickets that require as few as 2,500 miles each way. You don't have to take too many flights to rack up numbers like that, so by joining a frequent-flyer program, you can start socking away miles for your next award trip.\n*   **Achieve elite status**: Requirements vary by airline, but if you fly enough to earn elite status, you can usually count on benefits like free checked bags and the ability to select more types of seats in advance. That can save you money on the fees airlines now charge for these services. END
 TITLE: Will Travel Credit Cards Offer Non-Travel Perks Post-COVID? CONTENT: New Non-Travel Credit Card Perks\n--------------------------------\nThe ability to rack up airline miles and hotel points probably wasn't of much interest to consumers who weren't able to travel anywhere in the past year. That's why many travel credit cards began offering temporary non-travel benefits. END
 TITLE: Will Travel Credit Cards Offer Non-Travel Perks Post-COVID? CONTENT: As more folks get vaccinated and local restrictions are loosened, travel bookings appear to be surging for the summer and beyond, and consumer spending is also on the uptick. Some of these pandemic-related perks will probably expire as travel credit cards transition back to their typical earning and redemption options.\nThat said, when Chase's Pay Yourself Back feature launched, it was only valid through September 30, 2020. Chase has extended that deadline twice now, most recently through September 30, 2021. Depending on customers' behavior and whether they start redeeming more for travel again, that might get extended another time. Or it might not.\nIn short, if you have any temporary, pandemic-related benefits available to you with your credit card, be sure to take full advantage of them before their current end date. There's no telling if issuers will continue to extend them once things start getting back to normal.\nTo that end, make sure you understand the terms and conditions of any temporary or new benefits you are entitled to. Here's what you can do to stay on top of changing card benefits. END
 TITLE: Will Travel Credit Cards Offer Non-Travel Perks Post-COVID? CONTENT: Consider Opening Another Credit Card\n------------------------------------\nIf you normally carry travel rewards credit cards and have been maximizing their non-travel perks in this past year, you might look at opening a new credit card that offers similar advantages on an ongoing basis. Here are three to consider:\n*   **Capital One SavorOne Cash Rewards Credit Card**: This card has fantastic earning potential. It accrues 3% cash back on dining, entertainment, eligible streaming services and grocery stores (excluding superstores), and 1% back on everything else. New applicants can earn a one-time $200 cash bonus after spending $500 on purchases within the first 3 months from account opening. There is no annual fee.\n*   **Chase Freedom Unlimited®**: This card accrues 5% cash back on travel booked through Chase, 3% cash back on dining, and 1.5% cash back on all other purchases, making it an excellent all-round earner. It does not carry an annual fee, and is currently offering new applicants a bonus of up to $200 after spending $500 on purchases in the first 3 months. END
 TITLE: Will Travel Credit Cards Offer Non-Travel Perks Post-COVID? CONTENT: Should You Get Rid Of Your Travel Credit Card?\n----------------------------------------------\nBefore you clean out your wallet, you might want to hang on to your travel cards in case the rewards they earn and the perks they offer come in handy. Beyond that, though, think about the following two things. END
 TITLE: Avant Credit Card: An Unsecured Option for Low Credit Scores CONTENT: A Simple Unsecured Card for Building Credit\n-------------------------------------------\nIf you have bad credit, fair credit or a relatively new credit history, the AvantCard could be a good fit. Because it doesn't require a security deposit for approval, you can keep your money where it belongs: in your bank account.\nThe AvantCard reports your account activity to all three credit reporting agencies (Experian, TransUnion and Equifax). As long as you use the card responsibly and pay your bills on time every month, it can help you build a solid credit history.\nThat said, you'll want to make sure you don't run up too high of a balance. Your credit utilization rate, which is the percentage of the credit limit you're using at any given time, is an influential factor in your FICO® Score☉ . Credit experts recommend keeping your utilization rate below 30%—so if you have a $250 credit limit, that's a balance of $75—but the lower, the better. END
 TITLE: Avant Credit Card: An Unsecured Option for Low Credit Scores CONTENT: A Card to Take With You When Traveling\n--------------------------------------\nWhen you're traveling abroad, a lot of credit cards charge a foreign transaction fee, which typically amounts to 3% of each international purchase you make with most cards. That may not sound like a lot, but it can add up, especially on longer trips.\nWith the AvantCard, though, there is no foreign transaction fee, making it a solid option if you're planning a trip abroad. Also, the card runs transactions on the Mastercard payment network, which has broad acceptance internationally. END
 TITLE: Avant Credit Card: An Unsecured Option for Low Credit Scores CONTENT: Is This Card Right for You?\n---------------------------\nThe AvantCard has an advantage over secured credit cards because it doesn't require a security deposit. And while it does charge an annual fee, it's low compared with some of its competitors.\nBut depending on your situation, there may be other credit cards you could qualify for that don't charge an annual fee, and some of them even offer rewards. Take some time to compare the AvantCard with other top credit cards to make sure you get the right one for you. END
 TITLE: Does Removing an Old Address Affect Your Credit Score? CONTENT: In addition to information credit scoring models use to calculate your credit score, your credit report includes personal identifying information such as your name, aliases and addresses that are used to help verify your identity and match you to your credit history. Experian uses this identifying information to differentiate your credit history from the other 220 million consumers with credit files, some of whom may have the same name as you.\nPersonal information like this isn't used to calculate your score. Credit scoring models only look at debt-related information, including payment history, amount of debt, length of credit history, types of accounts and recent applications for credit to determine your credit score. As long as personal information including your current and past addresses is accurate, you shouldn't worry about it.\nThe addresses that appear on your credit report have been reported to the credit bureaus by current or past creditors you've done business with. Past addresses you've used to receive bills in the past are likely to show up on your credit report. Old addresses don't need to be removed or disputed just because they're outdated; they're actually left there on purpose and may be used for identity verification purposes. END
 TITLE: Does Removing an Old Address Affect Your Credit Score? CONTENT: How to Update Information on Your Credit Report\n-----------------------------------------------\nIf you find an incorrect address—past or present—on your credit report from one of the three credit reporting agencies (Experian, TransUnion and Equifax), you can contact the agency that maintains the data to see which creditor reported it, or you may consider filing a dispute with the bureau. You always want the information in your credit report to be accurate. In some cases, an incorrect address is a sign of identity theft (more on that in a moment).\nIf your current address is not appearing on your credit report, notify your creditors. They'll update your address with Experian and the other credit reporting agencies when they update your account. Regardless of its presence on your credit report, it's best to make sure your creditors have an up-to-date address on record in case they need to correspond with you. If you don't have any open credit accounts right now, you can contact Experian directly to update your mailing address. END
 TITLE: Does Removing an Old Address Affect Your Credit Score? CONTENT: When Can Inaccurate Information Indicate Identity Theft?\n--------------------------------------------------------\nFinding information you believe to be inaccurate on your credit report is not proof positive of identity theft. In some cases, however, unfamiliar information on your credit report can be a sign of fraudulent activity.\nIf you find an address you don't recognize on your credit report, take the time to read through the entire report for any additional signs of trouble. In particular, be on the lookout for unfamiliar information:\n*   Accounts you didn't open\n*   Balances that are higher than expected\n*   Unpaid accounts\n*   Late payments you weren't notified of\nIdentity theft takes many forms. If you suspect you've been a victim of identity theft, it's important to take action quickly in order to minimize additional harm. Review your financial accounts for unauthorized transactions and contact the creditors reporting the potentially fraudulent information. You can also file a report with the FTC and local law enforcement.  \nIt could also be helpful to file a fraud alert that will ask potential creditors to verify your identity before issuing new accounts in your name. If you place a fraud alert with one of the three credit reporting agencies, an alert will be triggered with the other two. You can explore the Experian Fraud Center and the FTC's IdentityTheft.gov website for more information and next steps. END
 TITLE: Does Removing an Old Address Affect Your Credit Score? CONTENT: Catch Inaccuracies Sooner Than Later\n------------------------------------\nBecause identity theft is a growing problem—and keeping tabs on your credit is a wise practice in any case—it's a good idea to check your credit report and score at each of the three credit reporting agencies at least once a year through AnnualCreditReport.com. You can also monitor your Experian credit score and report continuously for free using Experian Credit Monitoring. END
 TITLE: 7 Surprising Things That Can Affect Your Credit CONTENT: 1\\. Utility Bills\n-----------------\nIf you're behind on your utility payments, you risk having your utilities turned off, and you may also get dinged on your credit score. It typically won't happen if you've missed just one payment, but if you're so far behind that the utility company has charged off your account or sent it to collections, that can show up on your credit report and get factored into your scores.\nBecause your payment history is the most important factor in your FICO® Score☉ , the score used most by lenders, it's crucial that you pay all of your bills on time, including utility bills.\nHistorically, on-time utility payments haven't been included in your FICO® Score, so the only way utility accounts could affect your credit was negatively. But with a service called Experian Boost™† , that's changed. This free tool allows you to connect the accounts you use to pay utility bills, phone bills and even some streaming services and use your positive payment history to increase your credit score. END
 TITLE: 7 Surprising Things That Can Affect Your Credit CONTENT: 2\\. Requests for a Credit Limit Increase\n----------------------------------------\nThere are several reasons to request a credit limit increase on your credit card. Not only does it give you more spending power, but it can also improve your credit over time by reducing your credit utilization rate.\nBut applying for a line increase will likely cause your lender to conduct an underwriting process similar to what's done when you first applied for the credit card. This often includes a credit check to determine whether you're eligible, which can result in a hard inquiry on your credit report.\nIndividual hard inquiries don't do much damage to your credit, and it's unlikely the addition of a hard inquiry will have a noticeable impact on your creditworthiness. According to FICO, each additional inquiry knocks fewer than five points off your score. But if you've submitted a lot of credit applications recently, adding another inquiry could have a compounding effect and hurt your credit even more. END
 TITLE: 7 Surprising Things That Can Affect Your Credit CONTENT: 3\\. Business Credit Cards\n-------------------------\nBusiness credit cards can be a great way for new and seasoned business owners to pay for everyday expenses and take advantage of rewards and benefits. But while the card is in your business's name, it may still impact your personal credit.\nThis is primarily because most business credit card issuers require a personal guarantee when you apply for an account. In other words, if your business can't repay what it owes, you're personally responsible for paying the debt. If you don't, the card issuer may report the delinquency to the consumer credit bureaus, which can hurt your credit.\nWhat's more, some business credit card issuers actually report all of your account activity to the consumer credit bureaus. Capital One and Discover are two major card issuers that do this. END
 TITLE: 7 Surprising Things That Can Affect Your Credit CONTENT: 4\\. Cosigned Loans\n------------------\nCosigning a loan for a loved one is a generous act because it can help them qualify for credit they might not have gotten on their own. But it's important to understand that cosigners aren't just lending their good credit for the application—they're also responsible for paying back the loan if the primary borrower can't.\nA cosigned loan will show up on your credit report as though you borrowed the money yourself, and if a payment is missed, it can damage credit scores for both borrowers attached to the loan. Also, having the debt on your credit report could increase your debt-to-income ratio, which can make it difficult for you to get approved for credit when you need it. END
 TITLE: 7 Surprising Things That Can Affect Your Credit CONTENT: 5\\. Car Leases\n--------------\nA car lease isn't technically a loan, so you might not think it gets reported to the credit bureaus. After all, your apartment lease doesn't always get reported either.\nBut leasing companies report the account just like a traditional installment account. So it's crucial that you keep up with your payments. Fortunately, lease payments are typically lower than auto loan payments, so it may be easier to afford if your budget is tight. END
 TITLE: 7 Surprising Things That Can Affect Your Credit CONTENT: 6\\. Having Little Credit Diversity\n----------------------------------\nOne thing lenders like to see is that you can successfully manage different types of credit. This means that having a credit card, auto loan, student loans and a mortgage can be better for your credit than just having a couple of credit cards.\nThis credit mix makes up 10% of your FICO® Score. According to FICO, it likely won't be a deal breaker for lenders if you don't have tons of diversity with your credit accounts. If you're looking to take your score into 800 territory, however, adding a new type of debt to your credit mix can help.\nDoes this mean you should apply for different types of credit just to boost your credit mix? FICO says no. It's important to weigh the costs of a loan against the benefits of having it. In most cases, it's best to naturally establish a diverse mix of credit over time as you need different forms of financing. END
 TITLE: 7 Surprising Things That Can Affect Your Credit CONTENT: 7\\. Ignoring Your Credit Report\n-------------------------------\nThe simple act of checking your credit report doesn't impact your credit score directly. But if you neglect your credit reports, you could miss something that can wreak havoc on your credit score.\nFor example, if someone steals your personal information and opens a fraudulent credit account in your name, that account will show up on your credit report. If you don't catch it and the account goes delinquent, it can damage your score. Fraudulent accounts can be disputed and removed, but you'll have to first know they're there before you can start the cleanup process on your own.\nThe same goes for errors on your credit report. While it's uncommon, it is possible for lenders to make a mistake when reporting your account status. In some cases, these errors can have a negative impact on your credit score. So check your credit report regularly for these damaging items and file a dispute if you find something you feel is incorrect. END
 TITLE: Why Did My Credit Score Improve? CONTENT: Your Credit Utilization Ratio Decreased\n---------------------------------------\nYour credit utilization ratio is the amount of revolving credit you're currently using compared with your total credit limit. Scoring models calculate credit utilization based on your individual credit card account balances as well as your total utilization across all credit card accounts. Credit utilization is a major component of the \"amounts owed\" factor, which makes up 30% of your FICO® Score☉ .\nWhen you pay off a credit card balance, your utilization on that card drops to zero—and your overall utilization drops too. That generally has a positive effect on scores (though showing you can manage credit cards on a regular basis means that a low overall ratio is better than zero). Since account information is updated with the credit bureaus after the end of a billing cycle, you may not see a score change until 30 to 45 days have passed after reducing your credit utilization.\nKeeping your credit utilization below 30% of your available credit can help you improve your scores, and the lower, the better. Paying down your balances is the most straightforward way to reduce your credit utilization, but you can also request that a credit card issuer increase your credit limit. An increased limit can help you reduce your utilization even if you maintain the same credit usage. However, you should resist the temptation to use that increased limit to add to your debt. This could leave your utilization ratio worse off than before and result in more interest charges. After requesting a credit limit increase, you might see a brief drop in your score if the issuer had to make a hard inquiry in order to review your credit report as part of its decision-making process. END
 TITLE: Why Did My Credit Score Improve? CONTENT: Negative Information Fell Off Your Credit Report\n------------------------------------------------\nNegative marks on your credit report include late payments, bankruptcy, collections, foreclosure and student loan default. Each of these stay on your report for seven years, with the exception of Chapter 7 bankruptcy, which stays on your credit report for 10 years.\nEven if you end up paying off an account in full, past late payments on that account will remain on your credit report until that seven years is up. When a negative mark does eventually come off your report, your credit score will likely increase. It's not possible to pay a company to remove a negative item from your report early, despite the promises some services make.\nRehabilitating a defaulted student loan through the federal government's official program, though, will remove the default notation from your report. Previous late payments will stay for seven years. END
 TITLE: Why Did My Credit Score Improve? CONTENT: You Paid Down Existing Debt\n---------------------------\nPaying down your revolving credit, which is a type of debt that includes credit cards and other lines of credit, could potentially result in a quick credit score increase.\nOn the other hand, paying off installment debt such as personal loans, student loans and mortgages, generally won't affect your score as positively right away. That's mostly because installment accounts aren't factored into your credit utilization. Another reason is that paid-off accounts will be listed as closed, and closed accounts aren't weighted as heavily in score calculations as open accounts. Paying off debt in general is a smart move, but reducing loan balances won't necessarily result in an immediate credit score increase.\nThe news is also mixed when it comes to paying off or settling accounts in collections, meaning they're past due and have been sold to a debt collector. Newer credit scoring models won't factor paid-off collections accounts in your score, which means that particular negative mark won't negatively affect it.\nBut older scoring models, including those used for mortgage lending, will still consider the derogatory mark of your collections account in your credit score, which means paying off or settling the account won't increase it. END
 TITLE: Why Did My Credit Score Improve? CONTENT: You Diversified Your Credit Mix\n-------------------------------\nA less significant, but still important, element in your credit score is credit mix. This refers to the types of credit accounts you currently hold, which generally come in two types: installment credit and revolving credit.\nCredit mix accounts for 10% of your FICO® Score. It can contribute to a higher score if you add a new type of credit to your report, such as a mortgage if you only had credit cards or a credit card if you only had student loans—as long as you continue to manage all your debts responsibly.\nDiversifying your credit mix often is a result of the normal course of borrowing and adding accounts to your credit portfolio. It's not a wise move to take on more debt accounts in an attempt to increase your credit mix. The effect you'll see on your credit is likely to be very small, and the added debt can affect your personal finances. END
 TITLE: Why Did My Credit Score Improve? CONTENT: A Hard Inquiry Fell Off Your Credit Report\n------------------------------------------\nWhen you apply for a loan, line of credit or credit card, a lender or credit card issuer will pull your credit report to check your payment history, other debt obligations and experience managing credit.\nThis is called a hard inquiry, and a record of the credit check will make its way onto your credit report. That happens so that credit scoring models, as well as other lenders and credit card issuers, can see how often you've applied for credit in the past. If you have many applications to a variety of credit types, you may appear to be a bigger lending risk. Credit scoring models do recognize the importance of rate shopping for loans like mortgages and auto loans, however, and will count similar loan applications as one inquiry if they're submitted over a period of a couple weeks.\nHard credit inquiries stay on your credit report for up to two years. In most cases, they'll only negatively affect your credit for a year or less. A single inquiry's effect on your credit will be slight, if it's noticeable at all, and can be blunted by positive payment history and other responsible credit behavior. If your score increased recently, it might be because an old hard inquiry is no longer being factored into your score. END
 TITLE: Why Did My Credit Score Improve? CONTENT: You Are Managing Your Bills and Credit\n--------------------------------------\nScore improvements can also be a result of ongoing responsible credit management, like paying your bills on time and paying off your credit card balance in full each month. These two habits alone will ensure that payment history and credit utilization, the two most important scoring factors, always contribute positively to your score.\nLength of credit history also accounts for 15% of your FICO® Score. It's generally in your best interest to keep credit card accounts open, even if you're no longer using them, since past positive payment history will continue to benefit you. (You may decide to cancel a credit card, though, if it carries a pricey annual fee or you're tempted to use it to overspend.) A prolonged period of responsible credit behavior will lead to top-notch scores over time. END
 TITLE: Why Did My Credit Score Improve? CONTENT: Keep Up With Positive Credit Habits\n-----------------------------------\nWatching your credit score increase is a cause for celebration. It's also a driving force to keep your score strong and even improve it further. As always, making sure you're paying bills on time should be your top priority, so consider setting up automatic payments to your loans and credit cards from a bank account each month.\nOther positive credit habits include limiting new credit applications to only what you need and checking your credit report and score regularly. That way, you can notice right away if your score drops or unusual activity appears on your report, which could be a sign of fraud or the result of a creditor reporting the status of your account incorrectly. Identifying and addressing any errors will help prevent them from causing an undue negative impact on your credit. END
 TITLE: Why Did My Credit Score Improve? CONTENT: Using Credit Score Growth as Motivation\n---------------------------------------\nTake pride in an increased credit score, because it means that you're soundly managing the complexities of your credit file. It's not only good news today, but it presents a solid opportunity to learn more about how your credit score is calculated—and to put into practice habits that can bring you continued score growth in the future. END
 TITLE: How Is Your Credit Score Determined? CONTENT: Payment History\n---------------\nYour payment history, as it appears in your credit report, is typically the most important category in determining your credit scores. Within this category, the scoring models consider:\n*   **On-time payments**: A history of paying your bills on time is good for your credit scores.\n*   **Late payments**: Payments made over 30 days late will typically be reported by your lender and hurt your credit scores. How far behind you are on a bill payment, the number of accounts that show late payments and whether you've brought the accounts current are all factors.\n*   **Public records**: Filing bankruptcy can significantly hurt your credit scores.\nThe Fair Credit Reporting Act dictates how long negative information can stay on your credit report. Most negative marks, including late payments, last for up to seven years. Bringing past-due accounts current could help your scores, but negative marks may continue to have an impact for as long as they remain on your credit reports. END
 TITLE: How Is Your Credit Score Determined? CONTENT: Amounts Owed\n------------\nAmounts owed, or your credit usage, comes just after payment history in importance when determining credit scores. In part, this category includes how much you owe on loans and how many of your accounts have balances. The main consideration in this category, however, is your credit utilization ratio.\nYour credit utilization ratio, or rate, is determined by comparing the current balances with the credit limits on your revolving accounts, mainly credit cards. To calculate your credit utilization ratio, add up the balances on all your credit card accounts, divide that number by the sum of all your credit card limits, and multiple by 100 to get a percentage. That percentage is your utilization ratio, and generally, lower utilization ratios are better for credit scores.\nCredit scoring models look at each revolving account's utilization rate as well as the overall rate across all accounts. In either case, it's best to keep your utilization under 30%. Those with the best credit scores tend to use under 10% of their available credit.\nThere are different ways to lower your utilization ratio, such as paying down credit card balances or increasing your cards' credit limits. But even if you pay your bill in full each month, you could have a high utilization rate.\nThat's because scoring models calculate utilization rates based on the balance that your credit card issuer reports to the credit bureau, which often happens around the end of each statement period (a few weeks before the bill's due date). Making a payment during your statement period can lower your reported balance and resulting utilization rate. END
 TITLE: How Is Your Credit Score Determined? CONTENT: Length of Credit History\n------------------------\nResponsibly managing credit accounts over a long period of time can help your credit scores. Credit scoring models may look at the age of your oldest account, newest account and the average age of all your accounts when factoring in credit history.\nThere's no shortcut to building a lengthy credit history, although becoming an authorized user on an account that the primary user has had for a long time may help. If you decide to close a credit card account in good standing, it can remain on your credit report for up to 10 years, and could continue to help your credit scores during that time. However, closing an account reduces your overall available credit, which could have a negative effect on your scores. END
 TITLE: How Is Your Credit Score Determined? CONTENT: New Credit\n----------\nRecent credit activity isn't a major determinant in your credit score, but several things can happen when you apply for and open a new account.\nFirst, submitting an application can lead to a hard inquiry—a record of the fact that someone reviewed your credit to make a lending decision. Hard inquiries can lower your credit scores, as they could increase your risk as a borrower in the eyes of lenders.\nHowever, credit scoring models are also built to recognize that consumers who are shopping for a loan aren't necessarily extra risky. After all, you might apply to get preapproval for eight auto loans to find your best rate, but that doesn't mean you're taking out eight auto loans. As a result, scoring models may \"deduplicate\" multiple hard inquiries that occur within a 14- to 45-day window (depending on the scoring model)—in other words, only count them as a single inquiry when determining your score.\nOpening a new account can also impact other scoring factors. For example, it may lower the average age of your accounts, which could slightly hurt your scores. But it also increases your available credit and presents an opportunity to make on-time payments on a new account in your credit report, which could help your scores over time. END
 TITLE: How Is Your Credit Score Determined? CONTENT: Types of Credit Accounts\n------------------------\nCredit scoring models may also look for experience managing both revolving and installment credit accounts. Having a mix of accounts can help your scores.\nSome credit scores are built for specific types of creditors, such as credit card issuers or auto lenders. Your experience with the correlated types of accounts could be more important for these types of scores. END
 TITLE: How Is Your Credit Score Determined? CONTENT: How Often Is Your Credit Score Updated?\n---------------------------------------\nYour credit scores are always based on an analysis of one of your credit reports. Rather than being updated at specific intervals, a credit score is created when you (or someone else) checks your credit report. New information could be added to your credit report at any time, which means the resulting score could change.\nYou may also see different scores if you're checking credit reports from different credit bureaus, as it's not uncommon for there to be differences between your credit reports. Or, even if you're checking the same report at the exact same time, you could get different scores depending on which scoring model analyzes the report. END
 TITLE: How Is Your Credit Score Determined? CONTENT: Check Your Credit Score for Free\n--------------------------------\nFICO® and VantageScore create the most widely used credit scoring models in the U.S., and each company creates multiple scoring models. Fortunately, consumer credit scores tend to move together, as they're using the same underlying information to try and predict similar outcomes.\nIf you have a good credit score generated by FICO® and based on your Experian credit report, you're unlikely to then have a bad score generated by another scoring model based on a credit report from one of the other bureaus. With Experian, you can check your FICO® Score☉ 8 for free, track it over time and get a breakdown of the factors that are most impacting your score. END
 TITLE: How Do I Get My Credit Score Above 700? CONTENT: Why Do I Want a Score Above 700?\n--------------------------------\nA good credit score ranges from 670 to 739, according to FICO®, the scoring model used most by lenders. That means working toward a credit score above 700 can make your life easier and help improve your finances.\nHaving a good credit score is important for several reasons. Lenders look at your credit score to determine how likely you are to pay back your debts on time. The higher your score, the more favorable the offers you are likely to receive from lenders, including higher dollar amounts at lower interest rates on loans, higher credit card limits and lower APRs on those cards, and access to more financing options.\nA good credit score can make a significant difference in the long run because lower rates can spell big savings. That's especially the case on longer-term loans, such as auto and mortgage loans, where even a small difference in interest rate can save you thousands of dollars over the loan term.\nBuilding good credit can also help you qualify for lower auto and homeowners insurance rates and can make it easier to secure a housing lease or even certain jobs. As such, it's a good idea to work to improve your credit even if you're not planning a major purchase. END
 TITLE: How Do I Get My Credit Score Above 700? CONTENT: How Can I See the Factors Impacting My Score?\n---------------------------------------------\nThere are five different factors that influence your FICO® Score, each weighted to prioritize your payment history and debt balances.\nCredit monitoring services, such as Experian's free credit monitoring tool, can give you valuable insight into each of these credit score factors and how they affect your credit history. You'll be able to pinpoint certain areas and find out which steps you can take to improve your situation. END
 TITLE: How Do I Get My Credit Score Above 700? CONTENT: Be Diligent About Monitoring Credit\n-----------------------------------\nThe process of building a credit score to 700 and beyond doesn't happen overnight. But there are some steps you can take now to get there faster.\nDuring this process, it's important to monitor your credit regularly. With Experian's credit monitoring service, you'll get free access to your FICO® Score powered by Experian data plus your Experian credit report. You'll also get real-time updates when changes are made to your credit report, such as new accounts, new inquiries and new personal information.\nAs you check your credit regularly, you'll be able to see what's working and what isn't. You'll also be able to quickly spot items that could hurt your score and address them before they do any real damage.\nAs you keep track of your credit score and continue to develop good credit habits, you'll not only have a good chance of achieving your goal of getting above 700, but also a much better chance of staying there. END
 TITLE: 5 Ways to Break Bad Credit Habits CONTENT: What Are Considered Bad Credit Habits?\n--------------------------------------\nSome credit habits that damage your credit score involve making a decision, such as applying for several credit cards in a short period of time. In other cases, though, the bad habits you need to kick involve neglecting your credit score and ignoring the steps you can take to improve it.\nSome of the most common bad credit habits include:\n*   Not checking your credit regularly\n*   Paying late or less than the minimum on your debts\n*   Not reading your credit card statements\n*   Running up balances on your credit cards\n*   Closing old credit card accounts\nIf you've developed some of these habits, don't be too hard on yourself. While negative information does stay on your credit report for seven years or more, adding positive information will help you make up for past mistakes.\nHere's a breakdown of each bad habit listed above and how you can replace it with a good one. END
 TITLE: 5 Ways to Break Bad Credit Habits CONTENT: Continuously Monitor Your Credit\n--------------------------------\nYou may have heard that checking your credit score hurts it, but that claim couldn't be further from the truth. Checking your credit score and reports regularly is an important step in building and maintaining a solid credit history.\nIf you don't check your credit often enough, you may miss out on potential issues that could have a significant negative impact on your credit score. For example, you may have forgotten about an account that went to collections or missed a payment.\nWhen you check your credit frequently, you'll be able to see where you stand, which factors are influencing your score for better or worse, and what steps you can take to address potential issues.\nWith Experian's credit monitoring tool, you can get free access to your FICO® Score☉ powered by Experian data and your Experian credit report, which is updated every 30 days. The service also sends notifications when changes are made to your Experian credit report, such as a new account, a new credit inquiry or new personal information. These alerts will make it even easier to address potential problems immediately. END
 TITLE: 5 Ways to Break Bad Credit Habits CONTENT: Build a Positive Payment History\n--------------------------------\nYour payment history is the most important factor in your credit score, so even one missed payment can drop your score significantly. What's more, late payments remain on your credit report for seven years.\nThe more missed payments you have and the longer you leave them unpaid, the further your credit score will drop, making it even more difficult to get back on track.\nThe good news is that late payments aren't reported to the credit bureaus until 30 days after they're due. So if you have some recent missed payments, try to get caught up as quickly as possible. You might still face penalties from your lender, but taking care of late payments before the 30-day mark will save you from credit score harm.\nAs you work to start making all your payments on time, you'll also want to try to get current on accounts where you're behind. This will help stop those negative marks from damaging your credit even more and can help you stay motivated to be on time moving forward.\nOne way to help ensure that you always pay on time is to set up automatic payments on your accounts. Just be sure to set them on a date when you know you'll have enough cash in your bank account to cover them. Otherwise, you may be slapped with a returned payment fee.\nIf you can, try to pay more than the minimum amount due on your debts, especially your credit card accounts. Paying in full is ideal with credit cards because it keeps you from getting charged interest and helps your credit score. END
 TITLE: 5 Ways to Break Bad Credit Habits CONTENT: Understand Your Credit Card Bill\n--------------------------------\nIf you're making purchases with one or more credit cards on a daily basis—or close to it—it can be challenging to keep up with all of those transactions. At the very least, though, make it a goal to check your credit card statements every month.\nIf someone managed to steal and use your credit card information, not checking your bill every month could leave you unaware of the fraud. And if they have your credit card details, they may have other personal information they can use to damage your credit. If you see a potentially fraudulent account on your credit report, you may want to explore filing a dispute.\nReviewing your credit card transactions can also help you understand where your money is going, which could help you cut back in certain areas, giving you a little more cash flow to pay down debt, save or work toward other financial goals that are important to you.\nAs you check your bill, look through all of your transactions to make sure you recognize them. If you're only doing it once a month, it can be tricky to remember everything, so consider holding on to receipts so you can verify your charges.\nIf you want to be more diligent, check your online account every few days or once a week. You may even consider using budgeting software like You Need a Budget or Mint that imports your transactions across all of your accounts into one place for convenience. END
 TITLE: 5 Ways to Break Bad Credit Habits CONTENT: Keep Your Credit Utilization Low\n--------------------------------\nCredit utilization is the second most influential factor in your FICO® Score, making up 30% of the calculation. Your credit utilization rate is the percentage of your available credit that you're using at a given time. For example, a card with a $5,000 balance and a $10,000 credit limit has a 50% utilization rate.\nDuring the coronavirus pandemic, credit utilization rates dropped as spending went down. But the average rate is still 25%, which is high enough to be keeping credit scores down. A credit utilization in the single digits will go far toward helping your credit score.\nPaying your bills on time and in full is an excellent way to keep your utilization rate low. But even then, credit card issuers typically report information to the credit bureaus based on your statement balance, not the balance on your due date. So if you rack up a huge balance relative to your limit every month but pay it in full when it's due, your rate may still be high.\nTo ensure that your credit utilization stays low, try to keep credit card purchases to a minimum. If you pay your bill in full every month, that's excellent. But if your utilization rate is still high on your statement date, consider making multiple payments throughout the month to keep the balance low. END
 TITLE: 5 Ways to Break Bad Credit Habits CONTENT: Avoid Closing Credit Card Accounts\n----------------------------------\nWhen you pay off a loan, your account is closed as soon as the lender processes the transaction. But with credit cards, you can choose to keep them open for as long as you want.\nClosing old credit cards might seem to make sense if you don't ever plan on using them again. But keeping an old account open will help lengthen your credit history, which is good for your credit. It also increases your total available credit, which helps your credit utilization (as long as you don't rack up balances on the card again).\nOf course, there are instances where it might still make sense to close the account. For example, if it's a secured credit card and the lender still has your security deposit, you may want to close the account to get that money back. Also, if the card has an annual fee and you don't plan on using the card again, the cost may outweigh the benefit.\nFinally, if you've had issues with overspending, keeping your card may cause you to fall back on old habits. In that case, you could cut up the card and leave the account open. But if even that's not enough to curb the temptation, closing the account might be the best decision.\nOne thing to keep in mind is that some credit card companies will close accounts if they've been left inactive for too long. So you may want to use the card every few months for a small purchase or set it up as the payment method on a recurring bill and use autopay to make sure you never forget to pay the balance in full. END
 TITLE: 5 Ways to Break Bad Credit Habits CONTENT: Building Credit Takes Time, But Every Effort Makes a Difference\n---------------------------------------------------------------\nDeveloping good credit habits won't happen overnight, especially if you have to tackle delinquent accounts and large credit card balances. But the sooner you begin working on improving your credit history, the more of a positive impact you'll be able to make.\nAs you continue to check your credit score, credit report and credit card bills regularly, pay on time, keep your credit card balances low, and keep old accounts open, you'll start seeing the fruits of your labors within a few months—and you'll be on the right track toward excellent credit. END
 TITLE: How to Maintain a Good Credit Score CONTENT: Understand How Your Credit Scores are Calculated\n------------------------------------------------\nYou'll be able to care for your credit score more skillfully if you know how it's determined. The somewhat tricky part is that you have multiple credit scores: There are two primary scoring systems, the FICO® Score☉ and VantageScore®, and each model receives periodic updates. There are also scores specific to certain industries, such as auto lending.\nDespite the differences between the scoring models, focusing on the same behaviors and scoring factors will build solid scores across the board. Since the FICO® Score 8 is the most commonly used by lenders, experts often recommend monitoring it as a way to gauge the overall strength of your credit.\nHere's what affects your credit scores:\n1.  Your payment record: The most important element in your score is whether you've paid your bills on time. Lenders want to know that you can be trusted to fulfill your debt obligations, and they consider payment history to be the best indicator: In the FICO® scoring model, it accounts for 35% of your score.\n2.  How much credit you're using: Next, your score takes into account how much available revolving credit—primarily with credit cards—you're currently using. So, for instance, if you have a $5,000 credit limit across all of your credit cards, and you have $2,000 in debt on those cards, you're utilizing 40% of your total available credit. This is also called your credit utilization ratio, and it accounts for for 30% of your FICO® Score.\n3.  How long you've had credit: The length of your credit history contributes to 15% of your FICO® Score. Your credit history goes back to the first loan or credit card you had in your name; if you were an authorized user on another person's account, that counts too.\n4.  Types of credit: The mix of credit you're using makes up 10% of a FICO® Score. Lenders like to see that you can manage a range of credit types, including both loans and credit cards.\n5.  New credit: When you apply for a new credit account, the lender requests access to your credit report via one of the credit bureaus. That request, known as a hard inquiry, gets listed on your credit report and stays there for two years. Generally, the more recent inquiries and credit accounts you have, the more concerned a lender may be that you're seeking to access more credit than you can manage. New credit accounts for 10% of your FICO® Score. END
 TITLE: How to Maintain a Good Credit Score CONTENT: Pay All of Your Bills on Time\n-----------------------------\nSince payment history is the most heavily weighted factor in your score, never missing a payment is the most important way to maintain good credit.\nIdeally, automate your bills—including credit card bills, loan payments, utility payments and insurance bills—so that you're never late. If you're a cosigner on a loan or a joint account holder, make sure those payments are being made on time too. As a cosigner, a primary borrower's missed payment will also show up on your credit report. END
 TITLE: How to Maintain a Good Credit Score CONTENT: Keep Your Credit Utilization Low\n--------------------------------\nThe next most crucial score component is credit utilization, so pay close attention to the amount of debt you carry on credit cards. Experts' rule of thumb is to limit utilization to 30% or less of your credit limit—on each credit card and across all your cards—at all times.\nThe easiest way to do this? Use credit cards sparingly, and pay off your balances by the end of each month. Even better: Make payments to your cards periodically throughout the month so your utilization never gets too high. Your ultimate goal should be to use no more than 10% of your credit limit, as those with the very highest credit scores do. END
 TITLE: How to Maintain a Good Credit Score CONTENT: Stay up to Date on Your Credit Score and Report\n-----------------------------------------------\nWhat you don't know _can_ hurt you when it comes to your credit. Regularly monitor your score for changes so you can swoop in quickly if it drops—maybe because you've missed a bill, or maybe because there was suspicious activity that could be a result of fraud such as identity theft.\nThere are multiple ways to check your score for free, including through various personal finance websites, Experian, and credit card issuers or banks that provide customers with free scores.\nChecking your credit report is equally important, since your credit score is calculated using the information in your report. It's also wise to ensure that your personal information is accurate and that all the credit accounts listed belong to you. Know that accessing your own credit report will never hurt your score. You can get a free credit report from each of the consumer credit bureaus (Experian, TransUnion and Equifax) at AnnualCreditReport.com. END
 TITLE: How to Maintain a Good Credit Score CONTENT: How to Build and Establish Credit in the First Place\n----------------------------------------------------\nCredit can be frustrating because it may seem that you need credit to get credit. So, if you want to be able to buy a car or rent an apartment someday, how do you begin building credit? There are several products and strategies targeted specifically to those new to the world of credit:\n*   **Become an authorized user.** A relatively painless way to start out with credit is to become an authorized user on a parent or other loved one's credit card. You'll get your own card and can make purchases with it, but you won't be responsible for payments (though it's up to you and the primary account owner to decide how you'll contribute to monthly bills). You'll benefit from the primary borrower's payment history on the card, which means it's important to choose someone who has impeccable financial habits.\n*   **Take out a credit-builder loan.** If becoming an authorized user isn't attainable or attractive to you, an option you can pursue independently is applying for a credit-builder loan. These are often available through credit unions, and they allow you to make monthly payments as you would to a lender—and receive the money at the end of the loan term, possibly with accrued interest.\n*   **Get a secured credit card.** A secured credit card is a type of card geared specifically to those with low or no credit scores. You'll pay a cash deposit that typically becomes your credit line, and make and pay off purchases like you would with a traditional, unsecured credit card. If you use the card responsibly, you may have the option to transition to an unsecured one with the same issuer after a period of time. END
 TITLE: How to Maintain a Good Credit Score CONTENT: Keeping Credit Strong\n---------------------\nThe work doesn't end once you've built a good credit score. Maintaining it is a lifelong journey that will have huge benefits, from saving you money and stress during the mortgage application process to giving you access to premium credit card rewards. Keep up the good financial behavior you learned while building your score, and the perks will make the effort worthwhile. END
 TITLE: Why Is My Credit Score Different When Lenders Check My Credit? CONTENT: What Credit Score Do Lenders Use?\n---------------------------------\nThe two main companies that produce and maintain credit scoring models are FICO® and VantageScore. Lenders most commonly use the FICO® Score to make lending decisions, and in particular, the FICO® Score 8 is the most popular version for general use. If you've taken an interest in the health of your credit and how lenders will view it, checking your FICO® Score 8 is a smart place to start.\nThere are, however, many types of FICO® Scores. FICO® has released updates to its basic score over the years, and the FICO® Score 10 is the most recent. Mortgage lenders most often use older versions to assess applicants: the FICO® Score 2, 4 or 5.\nThere is also the FICO® Bankcard Score (used to make credit card lending decisions) and the FICO® Auto Score (used to make auto lending decisions). If you know you're interested in a certain type of credit, it could be worthwhile to check beforehand the specific score type you know a lender will look at. END
 TITLE: Why Is My Credit Score Different When Lenders Check My Credit? CONTENT: Why Do I Have So Many Different Credit Scores?\n----------------------------------------------\nIn addition to multiple score models and versions, there are also three credit bureaus—Experian, TransUnion and Equifax—that collect the information your credit scores are based on.\nFICO® develops scores specific to each bureau, so your FICO® Score 8 may be slightly different depending on the bureau. VantageScore, on the other hand, was developed cooperatively by the three credit bureaus, so scores that use the same VantageScore iteration will be the same no matter which agency you use.\nThere are some differences in the way VantageScore and FICO® calculate your score. For example, you likely will not have a FICO® Score if you don't have a credit account that's older than six months. You can get a VantageScore, however, if you have at least one account in your name—no matter its age.\nAdditionally, while both scoring models heavily weight credit utilization, or the amount of credit card debt you carry relative to your credit limit, the VantageScore 4.0 also takes into account your utilization over time. So if you usually pay your credit card bill in full—even if you carried a balance a few times—you'll be given credit for typically bringing your utilization to 0%. The most common versions of the FICO® Score, on the other hand, will assess your credit utilization based only on the time when your score was checked. The FICO® Score 10 T model does consider utilization over time, but it's yet to be widely adopted by lenders.\nDepending on the type of score, the scoring range may also differ. General FICO® Scores range from 300 to 850, and so do VantageScore 3.0 and 4.0 scores. But industry-focused FICO® Scores range from 250 to 900, and VantageScores 1.0 and 2.0 range from 501 to 990. Even though the precise number of the ranges might vary, in practice, the differences aren't major: The higher your credit score, the better. END
 TITLE: Why Is My Credit Score Different When Lenders Check My Credit? CONTENT: How to Improve Your Score Before Applying for Credit\n----------------------------------------------------\nA tried-and-true way to establish excellent credit is to pay all your bills on time, across each of your credit accounts. This isn't a fast way to improve a credit score, but done consistently, it will strengthen your scores no matter the model or version you look at. Paying off debt balances, if possible, will also lower your credit utilization, similarly improving your score.\nIf you're applying for credit very soon, avoid other hard inquiries in the weeks leading up to the application, as these could cause a temporary drop in your score. Also avoid closing old credit accounts—as long as they're not expensive or unwieldy to maintain—so your scores benefit from the account's credit limit and long credit history. Lenders will be glad to see that you've been able to responsibly manage an account over an extended period of time. END
 TITLE: Why Is My Credit Score Different When Lenders Check My Credit? CONTENT: Understanding Your Many Credit Scores\n-------------------------------------\nThere are some cases, such as when applying for a mortgage, when it's a good idea to check a specific score model and version. But in general, the differences among your credit scores are minor, and practicing smart credit habits will yield benefits across the many scores that belong to you. END
 TITLE: Does Adding a Credit Card Improve Your Credit Score? CONTENT: How Does Opening a New Credit Card Affect Your Credit Score?\n------------------------------------------------------------\nFirst, let's look at how a new credit card might help you improve your credit score:\n*   **Increase available credit**: Opening a new credit line increases your available credit, which can positively affect your credit score. The key is to keep the balance relatively low so your available credit stays high. This is known as your credit utilization rate, and it's best to keep your overall credit usage under 30%. For the best impact on your scores, keep your credit utilization as low as possible.\n*   **Improve credit mix**: Your credit mix refers to the different types of accounts you have in your credit file. There are many types of debt accounts and two broad categories: installment credit and revolving credit. Installment credit refers to loans you take out and repay a single time, such as mortgages, car loans and personal loans. Revolving credit refers to accounts you can charge a balance on, repay and reuse, such as credit cards and home equity lines of credit. Credit mix makes up 10% of your score, so opening a new credit card may be helpful if most of your existing accounts are installment loans. That said, avoid opening a credit card solely to diversify your credit accounts.\n*   **Opportunity to establish strong payment history**: Payment history comprises 35% of your credit score, making it the No. 1 influence on your credit. When you open a new credit line, you have a chance to build up a history of on-time payments by paying your bill by the due date every month.\nNow that you know the possible perks of opening a new credit card, let's consider some ways it might harm your credit:\n*   **Hard inquiries**: When you apply for a credit card, the card issuer will do a hard inquiry (also known as a hard pull) to access your credit report. This allows lenders to take a look at things like your payment history and how much debt you're carrying. Hard inquiries stay on your credit report for two years, but they'll usually only lower your scores for a few months following your application, if at all. If you have good credit otherwise and you don't have too many hard inquiries on your report, applying for one new card shouldn't impact your scores severely, and might not affect you at all. It won't be held against your scores if your credit card application is rejected, but it's still a good idea to avoid unnecessary hard inquiries. Before you apply, do your research to find a card for which you're likely to be approved.\n*   **Age of credit**: The length of your credit account history comprises 15% of your FICO® Score☉ . That means that the longer your cards have been open, the more positive an impact they'll have. A new card reduces the average age of your credit accounts. Still, on-time payments and credit utilization play much bigger roles in your score than credit age, so it shouldn't necessarily deter you from opening a new account.\nThe bottom line is that opening a new credit card might cause your score to dip initially. But over the long term, it can help you improve your credit history and raise your credit score. END
 TITLE: Does Adding a Credit Card Improve Your Credit Score? CONTENT: If you decide to open a new credit card, it's important to be strategic about how you use it. After all, you want the card to help you build credit and develop an excellent financial profile. Here are some ways to do that:\n1.  Make all of your payments on time. Because it's the biggest factor in your FICO® Score, it's important to get your payments in by their due date, every time. If your card issuer offers an autopay option, consider setting it up for at least the minimum monthly payment. Then you don't have to worry about owing a late fee or taking a hit on your credit score because you forgot to pay. You can make additional payments at any time.\n2.  Pay off your balances each month. Carrying a balance month to month means you'll likely be charged interest. Your bill can grow quickly if you continue using the card while interest is accruing, so consider paying your balance if you're able. Doing so helps you avoid paying more than necessary, and it also keeps your credit utilization rate low. That's second only to payment history in terms of how it affects your FICO® Score, so it helps to be mindful of how much you're putting on your card.\n3.  Or, keep your balances low. If you're unable to pay your balances in full every month, you can still aim to keep them low. You might stop using the card, or use it only for small-ticket purchases so it's easier to chip away at your balance. Then, if you're able to pick up some extra shifts at work or receive some cash as a gift, you can use it to pay down the balance and get back to $0 faster.\n4.  Create a credit card budget. The deferred nature of debt can cause you to live outside your means if you don't stick to a plan to pay it off. Debt balances can increase quickly and so can the amount of interest you owe. To keep your payments manageable—and to keep boosting your credit score—avoid charging more than you can afford to pay in cash. That way, you'll be able to afford your payments and you'll build a consistent record of responsible card usage. END
 TITLE: Does Adding a Credit Card Improve Your Credit Score? CONTENT: Should You Close Old Credit Cards?\n----------------------------------\nIf you have an old credit card that you rarely use, you might think the best option is to get rid of it. After all, why keep an account you never touch?\nReality is a little more complicated, though. When you close a credit card, you lose access to that credit line and your credit utilization can increase (since your total available credit will be lower). The overall age of your credit also drops, since that account no longer factors into your score. The result is that your score could actually decline in the months following your account closure. Because of that, you may want to keep your old accounts open if you plan to apply for new financing soon—a mortgage or car loan, for example.\nHowever, there are circumstances in which it may be best to close the account, particularly if you aren't applying for a new loan or card anytime soon. If your card has a high annual fee or high interest rate, you may want to close it in favor of getting a more competitive card down the road. You might also want to close the account if you find that you're overspending on it and racking up more debt than you can afford. END
 TITLE: Does Adding a Credit Card Improve Your Credit Score? CONTENT: How to Improve Your Credit Without Credit Cards\n-----------------------------------------------\nIf you don't want to open a new credit card, there are still ways to increase your credit score.\n*   **Get a credit-builder loan.** With a credit-builder loan, a lender will open an account for you and deposit a set amount of money in it. You then make payments toward that amount on a monthly basis. Once you reach the deposit amount, the lender releases the funds to you (plus interest, if that's part of the agreement). The lender reports those on-time payments to the three credit bureaus (Experian, TransUnion and Equifax), enabling you to build your score. You can generally take out credit-builder loans for $300 to $1,000.\n*   **Open a secured credit card.** A secured credit card may have less strict criteria than an unsecured card, making it easier to access. Typically, you'll pay a security deposit to obtain a secured credit card, which often becomes your credit limit on the new card. Once the card is opened, you can use it the same way you would a traditional credit card. As long as the issuer reports your secured card account activity to the credit bureaus, on-time payments and low credit utilization can help you improve your credit.\n*   **Become an authorized user on someone else's account.** If you have a trusted relative or friend who has good credit, you might ask them to add you as an authorized user to their credit card. As an authorized user, your credit score will benefit from their good payment history. However, if you know they carry a high balance or occasionally miss payments, you may want to skip this option. If the account has derogatory marks, it won't help your scores.\n*   **Get credit for on-time utilities and streaming payments.** On-time payments for your utilities, phone and even streaming subscriptions can count toward your credit scores if you sign up for Experian Boost™† . Experian Boost is a free service that allows you to get credit for regular bill payments and streaming accounts such as:\n*   Disney+™\n*   HBO™\n*   HBO Max™\n*   Hulu™\n*   Netflix®\nWhether you open a new credit card or not, there are always opportunities to establish a track record of responsible financial management. Being mindful of those opportunities will set you on the path to improving your credit score. END
 TITLE: What Is the Difference Between FICO<sup>®<\/sup> Score and Credit Score? CONTENT: Is a FICO® Score the Same as a Credit Score?\n--------------------------------------------\nAs with all credit risk scores, FICO® Scores predict the likelihood that someone will fall 90 days behind on a bill within the next 24 months. FICO® does this using complex algorithms based on information in your credit report from each of the national credit bureaus: Experian, TransUnion and Equifax.\nFICO® periodically releases new versions of its scores, and it creates different versions of its scores to work with each bureau's databases, which is why there are many FICO® Scores. Other companies, including VantageScore®, also create credit risk scores that similarly analyze consumer credit reports to calculate scores.\nCredit scoring models rank consumer credit behavior, so someone with a higher score is considered less likely to miss a payment than someone with a lower score—and therefore, a higher score can help you secure better terms when you're applying for credit.\nFICO® and VantageScore credit scores range from 300 to 850, and group consumers by credit scoring ranges. For example, a FICO® Score of 800 to 850 is considered \"exceptional.\" However, even if they use the same range and information from the same credit report, each scoring model takes a unique approach that may result in a different score.\nFICO® also creates other types of scores that are based in part, or entirely, on your credit reports. For example, FICO® offers credit-based insurance scores and bankruptcy scores, which try to predict the chance you'll file an insurance claim or declare bankruptcy, respectively. END
 TITLE: What Is the Difference Between FICO<sup>®<\/sup> Score and Credit Score? CONTENT: Why Do I Have Different FICO® Scores?\n-------------------------------------\nAs mentioned above, FICO® creates different FICO® Score models to work with each credit bureau's credit reports. And, FICO® periodically releases new FICO® Score models to incorporate changing consumer behavior, new regulations and technological advances. Because not all lenders and businesses use the same scoring models or versions, you may have several—or even hundreds—of credit scores.\nFor example, the FICO® 10 T score is a variation of the FICO® Score 10, the latest version of the company's base scoring model. It's the first FICO® Score to consider trended data—a look at how you've managed accounts over the past 24 months. But lenders may use older models, such as the FICO® Score 8 or FICO® Score 9—or even older versions—when determining whether to approve a loan or credit card application. Or they may choose to use one of VantageScore's credit scoring models, such as its most recent 3.0 and 4.0 versions.\nFICO®'s base scores aren't intended for a specific type of lender or loan. But FICO® also creates industry-specific scores for auto lenders and credit card issuers. These models build on top of a base model to give creditors in that industry a more tailored score, which ranges from 250 to 900. END
 TITLE: What Is the Difference Between FICO<sup>®<\/sup> Score and Credit Score? CONTENT: What Is My Real Credit Score?\n-----------------------------\nCompanies can choose which score to purchase and use when reviewing applications and managing customers' accounts, which is one reason there's competition in the credit scoring world. With this in mind, there isn't a single, \"real\" credit score.\nFor example, when you're shopping for an auto loan, you may try to get offers from several lenders. One lender might use a FICO® Score 8, another a FICO® Auto Score 2, and a third a VantageScore 4.0. Your scores may vary, but each is very real in the sense that the lender is using it to determine if you qualify for a loan and the rates and terms to offer you.\nGenerally, you won't know which of your three credit reports or which credit score a lender will use. However, because credit scores all rely on the same underlying data, building positive credit can help you get good credit scores regardless of the model. Conversely, negative items, such as late payments or a bankruptcy, could hurt all of your credit scores. END
 TITLE: What Is the Difference Between FICO<sup>®<\/sup> Score and Credit Score? CONTENT: Check Your FICO® Score for Free\n-------------------------------\nWhile there are newer FICO® Score versions available, FICO® Score 8 remains one of the most widely used versions. Partially, this is because lenders need to invest time and money into switching to a new scoring model. You can check your FICO® Score 8 based on your Experian credit report for free online. You'll also learn about which factors are most helping or hurting your scores and can track your score over time. END
 TITLE: What Credit Score Do I Need to Buy a Multi-Unit Property? CONTENT: What Is the Minimum Credit Score to Get a Multi-Unit Property Mortgage?\n-----------------------------------------------------------------------\nProperties with up to four units can qualify for a residential mortgage, while those with five or more units are considered commercial real estate. For the purposes of this article, we'll focus on residential mortgages. If you plan to purchase and live in a property with four units or fewer, you may be able to do so using a conventional mortgage loan. This is essentially a loan not affiliated with any government program.\nTo qualify for a conventional multi-family mortgage, you'll likely have to meet the same type of credit requirements as you would on a mortgage for a single-family home. Many lenders require credit scores of 660 or higher for conventional loans, though you may be able to qualify with a score as low as 620. Freddie Mac Home Possible loans—conventional loans for owner-occupants that allow smaller down payments and lower income requirements—require a minimum credit score of 700. Conventional loans are typically the only option available to investors who don't plan to live on-site.\nFuture owner-occupants can also look into government-backed loans. Federal Housing Authority (FHA) loans may be easier to qualify for than most conventional loans, since credit score requirements are lower and the down payment requirement is as little as 3.5% if you purchase four units or less.\nThe Department of Veterans Affairs also offers multi-family mortgages and does not have a minimum credit requirement. The lender you go through for your VA loan, however, may have their own requirements for your credit, income and assets. END
 TITLE: What Credit Score Do I Need to Buy a Multi-Unit Property? CONTENT: Ways to Finance a Multi-Unit Property\n-------------------------------------\nYour down payment and other financing costs will depend on the loan type you qualify for. Here's an overview of financing options for a mult-unit property purchase, and some of the terms to expect:\n*   **Conventional loans**: You may be able to get a conventional loan with as little as 3% down, but you'll pay private mortgage insurance (PMI) if you put down less than 20% of the purchase price. Freddie Mac's Home Possible loan, for purchases of up to four units, may require a down payment as low as 5%.\n*   **FHA loans**: The FHA offers residential loans on multi-unit properties of up to four units through approved lenders. While the required down payment may be as low as 3.5%, you'll have to pay mortgage insurance for the life of the loan.\n*   **VA loans**: If you're a qualifying servicemember, veteran or military spouse, you can use a VA loan to buy a property with up to four units. You won't be required to pay PMI and you may not have to make a down payment. Your lender will determine your closing costs and interest rate. END
 TITLE: What Credit Score Do I Need to Buy a Multi-Unit Property? CONTENT: How to Prepare Your Credit to Buy a Multi-Unit Property\n-------------------------------------------------------\nBecause a mortgage is likely the biggest loan you'll take out, ensuring your credit is in good shape before you apply is critical. In fact, it could save you tens of thousands of dollars over the life of the loan.\nIf you're planning to take out a mortgage for a multi-unit property, the first step in preparing your credit is reviewing your credit reports and scores with all three of the national credit bureaus (Experian, TransUnion and Equifax). You can get a free report from all three at AnnualCreditReport.com. You can also get your Experian credit report and credit score for free.\nIdeally, you'll want to review your credit file at least six to twelve months in advance of shopping for a new loan. If that's not possible, try to give yourself at least a few months to make improvements, since it could take 30 days or more for changes to show up on your reports and impact your scores.\nReview your credit reports carefully to ensure all the information is accurate. If you find any inaccuracies, dispute them as soon as possible to have the information modified or removed.\nIf your score isn't as high as you'd like, you can take action. Some of the best ways to improve your scores quickly include paying down credit card balances, bringing any past-due accounts up to date, and making all your debt payments on time.\nAvoid opening any new credit accounts, such as a new credit card or an auto loan, in the months leading up to your mortgage application. Because a mortgage will represent a significant expense, wait until after you've purchased your new property and adjusted to making the on-time payments before seeking new credit. This will not only help your finances, but will also lead lenders to view your application more favorably.\nConsider getting prequalified for a mortgage to find out generally what you can get in terms of the loan amount and interest rate, and which lender you may want to work with. When you're ready to make an offer on a property, request a preapproval letter from one or more lenders for a more precise idea of rates and terms. Try to submit all of your applications within a 30-day window, which helps you avoid multiple dings to your credit scores. END
 TITLE: What Credit Score Do I Need to Buy a Multi-Unit Property? CONTENT: Other Ways to Prepare\n---------------------\nPurchasing a multi-unit property is likely to have a major impact on your finances for many years to come. Getting your credit in order is a great way to prepare, but you'll also need to make sure your finances can handle the other changes that come with your purchase.\nBefore taking on a new loan, review your budget to see what you can really afford. Can you cover a monthly payment and all other costs that might be involved, including a down payment, closing costs, moving expenses, property taxes and building maintenance?\nReviewing your budget, and factoring in all of your potential costs, will not only help ensure you can afford to buy the property, it will also help you determine whether you can afford to own the property over the long-term. END
 TITLE: 7 Common Credit Mistakes and How to Avoid Them CONTENT: Not Checking Your Credit Often\n------------------------------\nMonitoring your credit score is a good way to not only keep track of your progress but also to spot potential issues and address them before they do significant damage.\nYou can check your credit report and score as often as you'd like. Generally, you can access each of your three credit reports for free once every 12 months through AnnualCreditReport.com. However, through April 2021, you can access all of your credit reports weekly. You can also get a free Experian credit report anytime.\nMany sources, including Experian, also provide free access to your credit scores and update them regularly. You can obtain your free FICO® Score☉ with credit monitoring through Experian.\nThere are several other ways you can check your credit score. For example, some banks and lenders offer access to their customers as a perk. You may also get one when you work with a credit counselor. Just make sure the credit scores you see are the same as the ones lenders are likely to use.\nAs you review your credit health, look for items in your credit report that have the potential to hurt your credit score or are already doing damage, so you can address them quickly. END
 TITLE: 7 Common Credit Mistakes and How to Avoid Them CONTENT: Not Paying Bills on Time\n------------------------\nYour payment history has a big impact on your credit scores, so missing even one payment could wreak havoc on your credit.\nThe good news is that late payments on loans and credit cards are reported only if you're late by 30 days or more. So while being just one day late may result in fees and penalties, it won't damage your credit if you get current on your account before the 30-day mark.\nIf you do get slapped with a late payment on your credit report, it'll remain on your report for seven years. While its impact on your score may diminish over time with new positive information, it can still hamper your credit growth the entire time it's on there.\nTo ensure you pay all your bills on time, request payment reminders from your lenders or, even better, set up autopay through your lender or bank account. Just make sure you have enough money in your bank account each month to cover your bills. END
 TITLE: 7 Common Credit Mistakes and How to Avoid Them CONTENT: Only Making Minimum Payments on Your Credit Card\n------------------------------------------------\nPaying just the minimum amount due on your credit cards that carry interest will cost you more money in the long term than paying all, or most of, your debt every month. And if you're not careful, it can also damage your credit.\nThat's because as you make just the minimum payment every month, you may end up carrying a high balance on your credit card. This increases your credit utilization ratio, which is the percentage of your available credit you're using at a given time. How much you owe is another important factor in your credit scores, so a high utilization rate could cause significant damage if left unchecked. A credit utilization ratio above 30% can start to drag down your scores, but the lower it is, the better.\nPaying down your balances so they're all under 30% utilization is a good start. But if you have a significant amount of debt, consider attacking it with the avalanche method or snowball approach to pay down your cards' balances. END
 TITLE: 7 Common Credit Mistakes and How to Avoid Them CONTENT: Applying for Multiple Credit Cards at Once\n------------------------------------------\nVirtually every time you apply for credit, the lender runs a hard inquiry to check your credit report. This helps them determine whether to approve your application. When you're seeking certain types of loans, such as mortgage and auto loans, having multiple inquiries in a short period typically won't do much harm because they're all counted as one inquiry when calculating your credit score.\nThat's not how it works with credit cards, though. When you apply for multiple credit cards in a short period, typically each inquiry will count against you. In general, one additional hard inquiry may knock a few points, if any, off your credit score. But multiple inquiries can have a compounding effect on your credit score and cause creditors to view you as a riskier borrower.\nTo avoid damage to your credit, research credit cards and your likelihood of being approved before completing an application—then apply for the one you think is a fit. Experian CreditMatch™ can help you with providing you with credit cards according to your credit profile. END
 TITLE: 7 Common Credit Mistakes and How to Avoid Them CONTENT: Taking on Unnecessary Credit\n----------------------------\nLet's say you take out student loans and use the money for other purposes, get a personal loan to pay for a vacation or rack up a credit card balance with discretionary purchases. These actions could put a strain on your budget, making it more challenging to keep up with your monthly payments and more likely that you'll miss a payment. It'll also increase how much you owe, which could also have a negative impact on your credit score—especially if it's on a credit card.\nThe simple solution is to only apply for credit when you really need it. This way you'll avoid paying interest charges unnecessarily and stretching yourself too thin financially. END
 TITLE: 7 Common Credit Mistakes and How to Avoid Them CONTENT: Closing Credit Card Accounts\n----------------------------\nWhen you close a credit card account in good standing (meaning you've never missed a payment), its history can remain on your credit reports for up to 10 years. However, the action could wind up hurting your credit score, at least temporarily. That's because when you close a credit card, you lose its available credit, which could cause your total credit utilization rate to go up.\nAlso, your credit score will no longer benefit from on-time payments over time, which won't necessarily hurt your credit score, but it could impede its growth.\nThat said, if you don't have balances on your other credit cards, closing your card after paying it off may not be a major issue. It may also be worth risking a hit to your credit if you've struggled with overspending and don't want the temptation, or if the card has an annual fee and you won't get enough value from the account to make up for it. END
 TITLE: 7 Common Credit Mistakes and How to Avoid Them CONTENT: Opting for Longer Auto Loan Terms\n---------------------------------\nAuto loan terms are at all-time highs—the average financing term for new cars is just under 72 months and about 65 months for used cars.\nOpting for a longer repayment term on your auto loan may seem like a good idea because it lowers your monthly payment. Some lenders will go as long as 84 months, which could make the car you've always wanted more affordable.\nBut if you can, it's best to avoid longer-term auto loans for a few reasons:\n*   You'll ultimately pay more in interest, even if you're paying less each month, which drives up the total cost of the vehicle.\n*   With a lower monthly payment, your car could end up depreciating faster than you can pay off the debt, which means you'll owe more than it's worth.\n*   Your financial situation could change over the next six or seven years and make it difficult to keep up with payments.\nIf you're having trouble with the higher monthly payment that comes with a shorter-term loan, look for ways to reduce how much you borrow. Options include putting down more money, removing add-ons like a maintenance package or service contract, and buying a less expensive vehicle. END
 TITLE: 7 Common Credit Mistakes and How to Avoid Them CONTENT: Building Credit Is a Long Game\n------------------------------\nIt can take years to get your credit score to where you want it to be. While that may sound daunting, it helps to take steps such as checking your credit report and score regularly, paying your bills on time, keeping your credit card balances low and avoiding debt that could put a strain on your budget.\nThe more quickly you develop these habits and avoid credit missteps, the easier it will be to continue those behaviors over time. As you build and maintain your credit history, you'll see many benefits, including cheaper financing, lower auto and homeowners insurance rates and more. END
 TITLE: 4 Simple Habits That Build Good Credit CONTENT: Why Is Having Stellar Credit Important?\n---------------------------------------\nCultivating good credit is key to your overall financial health. With it, you'll have access to a host of helpful financial options. Whether you want to buy a home, finance a car or maintain some extra spending capacity with credit cards, good credit expands your choices. A higher credit score can open the door to more loan and credit card options, lower interest rates and better terms.\nAre you looking to rent an apartment? A good credit score may improve your chances of being approved. Good credit can even help you save on insurance.\nThe exact math used to calculate your credit scores is kept secret, but the factors that help determine them are well-known. The two most common credit scoring models are the FICO® Score☉ and VantageScore®. Their exact algorithms differ, but they both consider similar factors, including:\n*   Payment history\n*   Credit utilization\n*   Length of credit history\n*   New accounts\n*   Credit mix\nTaken together, these factors tell the story of how well you manage credit. This information is important to lenders deciding whether to take you on as a borrower and what rates to offer you if they do. Do you have a history of using credit responsibly and paying it off on time? Are you taking on a lot of debt? Have you defaulted in the past? The answers to these questions help lenders determine how much of a risk you pose as a borrower.\nIf you're planning to apply for credit soon, there are things you can do to \"clean up\" your credit. Paying down debt, taking care of past-due accounts, and continuing to make payments on time are a few examples. There are no quick fixes, though. Maintaining healthy credit practices over time is the simplest route to good credit—and it can help you maintain healthy finances overall as well. END
 TITLE: 4 Simple Habits That Build Good Credit CONTENT: Good Habits and a Healthy Outlook\n---------------------------------\nDeveloping these four basic habits can help you keep your credit in good shape. In addition, monitoring your credit can help you track your progress and keep your goals top of mind. Experian's free credit monitoring might be useful here: It allows you to check your credit score and report regularly—and can alert you to changes as they happen. With a little vigilance and consistency, you can build good credit habits and the healthy financial outlook that goes along with them. END
 TITLE: How Do I Get My Real FICO Score? CONTENT: What Is a FICO® Score?\n----------------------\nA FICO® Score is a credit score that's developed and offered by FICO®. The company, originally named Fair Isaac Corporation, released its first credit bureau-based credit score in the 1980s. Since then, FICO® has created different types of credit scores and released new versions of its scores that have updated how calculations are made.\nFor example, FICO® offers base FICO® Scores, such as FICO® Score 8, FICO® Score 9 and, its latest, FICO® Score 10. These are general-use scores designed for use by multiple types of lenders for a wide range of credit products. FICO® also publishes industry-specific credit scores, such as the FICO® Auto Score for auto lenders and FICO® Bankcard Score for use by credit card issuers.\nThe base scores range from 300 to 850, while industry-specific scores range from 250 to 900. Both types of scores are intended to predict the same thing: the likelihood that someone will be 90 days late on a payment within 24 months. FICO® does this by analyzing the information within your consumer credit reports from either Experian, TransUnion or Equifax.\nFICO® builds different scoring models to align with how each bureau stores your information. Earlier versions of FICO® Scores even had different names based on the bureau, including the models that are still commonly used for mortgage underwriting:\n*   Experian\/Fair Isaac Risk Model v2 (FICO® Score 2)\n*   Equifax Beacon 5.0 (FICO® Score 5)\n*   TransUnion FICO® Risk Score 04 (FICO® Score 4)\nSince the release of FICO® Score 8, each new base model has used the same version number across all three bureaus, but the models are still customized with the bureau in mind. VantageScore®, another credit scoring company, uses a tri-bureau model that scores credit reports from Experian, Equifax and TransUnion using the same methods.\nFICO® and VantageScore credit scores are the most widely used credit scores, but other credit scoring companies are out there. For example, large creditors may use custom-built credit scores to help them evaluate new and current customers, and companies may publish educational credit scores for their customers to refer to. Educational scores may accurately assess your creditworthiness, but they shouldn't be relied on when making a decision to apply for credit since they can differ significantly from the scores used by lenders. END
 TITLE: How Do I Get My Real FICO Score? CONTENT: Which Credit Score Should You Check?\n------------------------------------\nWhen you check your credit, you'll likely receive either a FICO® or VantageScore credit score. Your score will depend on which scoring model is being used and which credit report is being analyzed (because your credit reports likely aren't identical).\nThe type of score might not matter if you're looking for an estimate of where you stand or want to track whether your score is going up or down. Fortunately, credit scores tend to move in a similar direction as they all analyze your credit reports with the same general goal in mind.\nCreditors can choose which score to use, and they don't have to disclose which of your credit reports or which score they are going to request ahead of time.\nKnowing at least one of your general-use FICO® Scores, such as FICO® Score 8, could be helpful as creditors often use a FICO® Score when evaluating new credit applications. Also, many mortgage lenders use the earlier FICO® models mentioned above to comply with federal regulations. Knowing those three FICO® Scores could be helpful if you're shopping for a mortgage. END
 TITLE: How Do I Get My Real FICO Score? CONTENT: How to Get Your FICO® Score\n---------------------------\nThere are several ways to get your FICO® Scores, both for free and at a cost.\nYou can get a free FICO® Score from hundreds of financial services companies, including banks, credit unions, credit card issuers and credit counselors that participate in the FICO® Score Open Access program and offer free scores to customers.\nFor example, if you sign up for a free credit score from Experian, you'll get a free FICO® Score 8 along with a copy of your credit report. Unlike some services that only track and show you your score, you'll then be able to review the underlying information (the credit report) that led to the score. Signing up for the Experian CreditWorksSM Premium program will provide access to your base FICO® Score 8 as well as your FICO® Score 2, FICO® Auto Score 2 and FICO® Bankcard Score 2.\nFICO® also sells scores on myFICO.com and authorizes \"FICO® Score retailers.\" These companies may offer free or paid access to FICO® Scores to consumers, and sometimes include additional products or services with your score.\nChecking with your bank or current credit card issuers is another option you may have. For example, American Express cardholders can get a FICO® Score 8 based on their Experian credit report and Citi cardholders can get a FICO® Bankcard Score 8 based on their Equifax credit report. END
 TITLE: How Do I Get My Real FICO Score? CONTENT: Keep an Eye on Your Credit\n--------------------------\nYour real FICO® Score can be had for free in several ways, but if you want to check multiple FICO® Scores, you'll generally need to opt for a paid service. You can look for services that come with more than just your credit scores, such as Experian CreditWorks℠ Premium. Experian's service also includes free credit report and score monitoring with notifications if there are any suspicious changes. Additionally, you get a wide-range of identity theft monitoring and protection services, including dark web surveillance and up to $1 million in identity theft insurance.\nYou can also match your score checking or monitoring with your current needs. A free score tracking service can help you keep an eye on one of your FICO® Scores and give you a sense of if your credit is improving. But a paid service may make more sense if you want identity theft protection, or if you're planning to buy a home and want to check the FICO® Scores that mortgage lenders commonly use. END
 TITLE: Can I Get an Unsecured Credit Card With a 500 Credit Score? CONTENT: What Credit Cards Can You Get With Bad Credit?\n----------------------------------------------\nUnsecured loans or lines of credit are types of financing that aren't backed by any kind of collateral. Debts like your mortgage or auto loan are tied to assets that can be repossessed if you fail to make good on your payments, but unsecured credit cards have no such backing. Compared with other types of credit, unsecured credit cards present more of a financial risk to lenders, which may cause them to be more discerning when deciding whether to approve you.\nHaving a good score tells creditors you know how to manage your credit responsibly and indicates you are a low-risk borrower. But if your credit score is hovering around the 500 mark, it might mean you've got negative marks in your credit history, such as missed payments or bankruptcies. That can make it difficult to get approved for an unsecured credit card.\nIf that's the situation you're in, secured credit cards are worth exploring. They're different from unsecured cards in that borrowers are required to make an upfront, refundable security deposit. In most cases, your deposit determines your credit limit. And it provides the card issuer with peace of mind—if you miss enough payments, they can use that deposit to cover their losses.\nThe main benefit of using this type of credit card is that the issuer will likely report your activity and payments to the credit bureaus each month, which can help rebuild your credit and boost your score. (When you apply, make sure the card issuer reports your payment history to the credit bureaus, otherwise you won't get credit for your responsible use of the card.) If you maintain good credit habits by keeping debt balances low and paying every bill on time, eventually your credit score may improve enough that you're able to qualify for an unsecured credit card. Below are a few exceptional secured credit card options for those with poor credit.\n*   **Secured Mastercard® from Capital One**: Capital One's secured card has no annual fee and a very reasonable security deposit structure—you may be able to put down a refundable security deposit starting at $49 to get a $200 initial credit line. After six months of responsible use, you could be considered for a credit limit increase without having to make an extra deposit.\n*   **First Progress Platinum Prestige Mastercard® Secured Credit Card**: This secured credit card stands out for its low interest rate of 9.99% Variable variable, which isn't the norm for secured cards. You won't get any rewards, and it comes with a $49 annual fee, but you can potentially bump up your credit line at any time by making an additional deposit with approval from the card issuer.\n*   **The OpenSky® Secured Visa® Credit Card**: The The OpenSky® Secured Visa® Credit Card is a secured card that doesn't require a credit check. The card can also help you build your credit since your payment history will be reported to all three credit bureaus. The card has a $35 annual fee. END
 TITLE: Can I Get an Unsecured Credit Card With a 500 Credit Score? CONTENT: **Secured Mastercard® from Capital One**: Capital One's secured card has no annual fee and a very reasonable security deposit structure—you may be able to put down a refundable security deposit starting at $49 to get a $200 initial credit line. After six months of responsible use, you could be considered for a credit limit increase without having to make an extra deposit. END
 TITLE: Can I Get an Unsecured Credit Card With a 500 Credit Score? CONTENT: **First Progress Platinum Prestige Mastercard® Secured Credit Card**: This secured credit card stands out for its low interest rate of 9.99% Variable variable, which isn't the norm for secured cards. You won't get any rewards, and it comes with a $49 annual fee, but you can potentially bump up your credit line at any time by making an additional deposit with approval from the card issuer. END
 TITLE: Can I Get an Unsecured Credit Card With a 500 Credit Score? CONTENT: **The OpenSky® Secured Visa® Credit Card**: The The OpenSky® Secured Visa® Credit Card is a secured card that doesn't require a credit check. The card can also help you build your credit since your payment history will be reported to all three credit bureaus. The card has a $35 annual fee. END
 TITLE: Can I Get an Unsecured Credit Card With a 500 Credit Score? CONTENT: What to Do if You're Denied a Credit Card\n-----------------------------------------\nIf you're denied a credit card, the issuer is required to give you an explanation as to why you were rejected. This is called an adverse action letter and must include your credit score, the reasons for the denial and other information. This letter will also explain that you're entitled to a free copy of your credit report from the bureau that provided the credit report the lender used to make their decision.\nGetting declined can be frustrating, but understanding the reasons why can help you build a plan of action that could make getting approved more likely the next time you apply. If you were denied based on your credit, familiarize yourself with the different factors that shape your credit scores. After all, you can be more effective in improving your credit scores if you know what's holding them back.\n*   **Payment history**: This is the most important factor in your credit scores. One missed payment could stay on your credit report for up to seven years. Make sure you understand when your bill payments are due as well as the minimum payment that's required. If you're past due on any accounts, get caught up ASAP.\n*   **Credit utilization**: Your credit utilization ratio refers to the percentage of your available credit that you're actually using. Exceeding 30% usually reflects negatively on your credit scores. In terms of its impact on your credit scores, lower your utilization, the better.\n*   **Credit length**: The age of your credit accounts matters too. A short credit history could be holding your scores back. Unfortunately, there's not much you can do to quickly address this factor, other than be patient.\n*   **Credit mix**: Lenders like to see a good mix of diversity in your credit profile. This can include credit cards, student loans, and other kinds of accounts.\n*   **New credit**: Scoring models also consider how many accounts you've opened recently, as well as how many credit applications you've submitted. Applications for new credit usually result in hard inquiries, which appear on your credit reports and factor into your scores.\nBut your FICO® Score and credit report information aren't the only things credit card issuers consider when you apply for a new account. For instance, those who cannot demonstrate steady income may find it difficult to get approved for an unsecured credit card.\nIn some cases, bringing on a cosigner could make the difference between getting approved and getting declined. This is someone who's willing to add their name to your account. You'll still be the primary cardholder—and the credit activity will reflect on your credit report as well as the co-signer's—but the cosigner is agreeing to step in and take responsibility should you fail to make your payments. END
 TITLE: Can I Get an Unsecured Credit Card With a 500 Credit Score? CONTENT: How to Improve Your Score Before Applying for a Credit Card\n-----------------------------------------------------------\nImproving your credit can take time, but it's more than possible for those who are serious about turning things around. Getting a secured credit card or partnering with a cosigner can certainly help. Aside from that, there are other things you can do to increase your credit score over time. Consider doing the following:\n*   **Always pay your bills on time.** Your payment history makes up 35% of your FICO® Score. Getting in the habit of making timely payments is one of the most effective ways to improve your credit.\n*   **Pay down high balances on revolving accounts.** Remember, using more than 30% of your available credit can do harm on your scores. If you have credit accounts that are going unused, keeping them open can help you improve your overall utilization ratio, just be sure to keep an eye on them.\n*   **Be mindful of opening new accounts.** Having lots of recent credit applications and new accounts on your credit report can cause lenders to think you're a heightened lending risk.\n*   **Periodically check your credit report.** Experian lets you check your credit report and scores for free without affecting your credit score. Review your report carefully; if you spot information you believe to be inaccurate, dispute it right away. Having incorrect information removed could instantly increase your score. END
 TITLE: Will a 700 Credit Score Affect How Much I Can Borrow? CONTENT: Is 700 a Good Credit Score?\n---------------------------\nCreditors set their own criteria and credit standards, and a credit score of 700 is generally considered a good, but not exceptional, score.\nCommonly used credit scoring models use ranges that go from 300 to 850. Within that range, there are different score bands, and where you fall within these bands can determine if a creditor views you as someone with bad or good credit. In general, for FICO® Scores☉ , the bands are:\n*   **Very poor**: 300 to 579\n*   **Fair**: 580 to 669\n*   **Good**: 670 to 739\n*   **Very good**: 740 to 799\n*   **Exceptional**: 800 to 850\nYou may also hear these score ranges or bands in relation to someone being a \"prime\" borrower. Prime borrowers are those who are statistically less likely to miss payments or default, and are generally offered some of the best rates and terms on credit products. Very poor credit is also called deep subprime, while exceptional credit might be labeled super prime. A 700 falls in the middle, as good or \"prime\" credit. END
 TITLE: Will a 700 Credit Score Affect How Much I Can Borrow? CONTENT: How Does My Credit Score Affect How Much I Can Borrow in Loans?\n---------------------------------------------------------------\nWith a 700 score, you'll likely be above creditors' minimum score requirements. This means your application probably won't be denied based on your credit score, but it won't necessarily be possible to secure the highest loan amount or the best terms even with a good score.\nFor example, you can qualify for many different types of mortgages with a 700 credit score. But the myFICO mortgage comparison tool shows that the best interest rates go to borrowers who have a score of 760 or higher.\nNot only that, creditors will be considering more than just your credit score when determining how much to lend you and what to charge. Other factors may include:\n*   Your income, your monthly debt obligations and how they compare (debt-to-income ratio, or DTI) before and after you take out a new loan\n*   Your credit history\n*   How you plan to use the loan\n*   The collateral's value (when you're applying for a secured loan)\n*   Your history with the lender\nSometimes, other factors are more important than your score. For example, even with a good score of 700—or a perfect score of 850—you might not get approved for a large loan if you don't have a steady income, have a high DTI or you've defaulted on a previous loan from the company. END
 TITLE: Will a 700 Credit Score Affect How Much I Can Borrow? CONTENT: How Does My Credit Score Affect My Credit Limit?\n------------------------------------------------\nYour credit score can also impact your credit limit on revolving credit accounts, such as credit cards. Generally, a higher score can help you qualify for a higher credit limit.\nBut similar to installment loans, creditors will consider more than just your credit score when setting your credit limit. Your income, DTI, history with the creditor, current economic conditions and the company's goals can all play into the decision.\nYour credit score can continue to impact your credit limit on your revolving account after you open an account. If your credit (or other factors) have improved since you got a credit card, you may be able to request a credit limit increase. Conversely, if your score or income drops, the credit card issuer may lower your card's credit limit. END
 TITLE: Will a 700 Credit Score Affect How Much I Can Borrow? CONTENT: How to Improve Your 700 Credit Score Before Applying for Credit\n---------------------------------------------------------------\nIf you've got a 700 credit score, you're on your way to having excellent credit, but here are a few things you can do to improve your credit score:\n*   **Continue paying your bills on time.** On-time payments are an important part of improving your credit. While the damage from a missed payment diminishes over time, even one missed payment can be a big setback and impact your score for years.\n*   **Pay down credit card balances.** Your credit utilization ratio, a measure of your credit cards' reported balances versus their credit limits, is another important scoring factor. Focus on paying down credit card debt or using a debt consolidation loan to lower your revolving balance and improve your utilization rate. Or, if you use your cards frequently and don't carry a balance, you may want to make payments during your statement period to reduce the balance that's reported to the credit bureaus.\n*   **Get prequalified.** A new credit application can lead to a hard inquiry, which can lower your credit score slightly even if you don't get approved. While credit scoring models allow for rate shopping and may ignore some hard inquiries, you can avoid unnecessary hard inquiries by getting prequalified or preapproved for a loan with a soft inquiry—which never hurts your score. The credit score harm, if any, that can result from a hard inquiry is small, and temporary, however, so it's not something you should lose sleep over.\nWhile a higher credit score may help you qualify for a larger loan and better rates, remember that your score is only one of the many factors that creditors consider. Whether you're trying to buy a home, car, take out a personal loan or open a new credit card, look for ways to improve your overall creditworthiness—not just your score. END
 TITLE: Will a 700 Credit Score Affect How Much I Can Borrow? CONTENT: Check Your Credit Before Applying\n---------------------------------\nIf you're not sure where you stand, you can check your FICO® Score for free with Experian. You'll also see which factors are helping or hurting your score, and can track your score over time. Additionally, you may be able to see which credit card or loan offers you're a good match for, or get prequalified for offers from Experian's lending partners through Experian CreditMatch™. END
 TITLE: Your 9 Most Common Credit Questions, Answered CONTENT: What Is a Good Credit Score?\n----------------------------\nHere's how the two major consumer credit scoring models, FICO® and VantageScore®, break down credit scores by range:\nBy these measures, a good credit score ranges from 670 to 739 on the FICO® scale and 661 to 780 with VantageScore. A lender may have different criteria, however. Many banks, for example, consider a score of 700 and above to be good. And many of the best rates and terms are available for applicants with even higher scores—in the very good or exceptional range.\nWhen you're looking for a loan or credit card, it pays to shop around. The same credit score might qualify you for a great rate with one lender and a more expensive loan with another.\nFor more, see:\n*   Why Do You Want a Good Credit Score?\n*   What Factor Has the Biggest Impact on Your Credit Score?\n*   What Is the Average Credit Score in the U.S.?\n*   What Are the Different Credit Scoring Ranges? END
 TITLE: Your 9 Most Common Credit Questions, Answered CONTENT: What Is the Difference Between a Credit Score and a Credit Report?\n------------------------------------------------------------------\nYour credit report provides a detailed record of your credit and payment history. It shows how much debt and how many open accounts you have (and with whom), how long you have been managing credit accounts, and a historical record of how and when you've paid your bills. You may have credit reports with one or more of the national consumer credit bureaus: Experian, TransUnion and Equifax.\nWhile your credit report provides lots of information on your credit account management, a credit score is a single number calculated using the information in your credit report. Credit scores are calculated by credit scoring companies including FICO® and VantageScore and typically range from 300 to 850.\nLenders and credit card companies use both your credit score and report to determine how well you manage credit and how much risk they assume when they offer you a loan or credit card.\nFor more, see:\n*   What Is a Credit Report?\n*   Understanding Credit Scores\n*   Do Credit Reports Include Credit Scores?\n*   Can I Have a Good Credit Report, but a Bad Credit Score? END
 TITLE: Your 9 Most Common Credit Questions, Answered CONTENT: Why Do I Have So Many Different Credit Scores?\n----------------------------------------------\nIf you've received your credit score from your credit card issuer, your bank or a credit reporting agency such as Experian, you've probably already noticed that your scores are different from day to day and place to place. There are many reasons why you have multiple credit scores, but for starters, here's a short list of factors that can result in your having different scores in different places:\n*   Each of the three credit bureaus maintains its own credit history on you. Because that data can vary, your scores from each bureau can vary as well.\n*   FICO® and VantageScore use different credit scoring models to calculate your score.\n*   Within FICO® and VantageScore, there are even more scoring models. For example, FICO® calculates separate scores for auto lending, mortgages and credit card applications.\n*   Banks and other lenders may use their own algorithms to calculate custom scores.\nRather than fixating on a single score or worrying about the differences between one score and another, you may find it helpful to think of yourself as having a range of credit scores. If you maintain good credit habits like paying all your bills on time every month, keeping credit card balances low and maintaining a good credit mix, a few points of fluctuation among scores will not matter: You'll have solid credit scores across the board. The same holds true if you do not manage your credit accounts well: Your scores may vary slightly depending on where you get them, but they'll reflect your overall credit management behavior.\nFor more, see:\n*   Does the Type of Credit Score Matter?\n*   Understanding Credit Scores\n*   Checking Your Credit Score From a Bank END
 TITLE: Your 9 Most Common Credit Questions, Answered CONTENT: What Factors Affect My Credit Score?\n------------------------------------\nThe scoring algorithms applied to calculate your credit score are complex—but the five factors used to determine your credit score are straightforward:\n*   **Payment history**: How you manage credit payments is the biggest factor in your credit score, accounting for 35% of your FICO® Score☉ .\n*   **Credit utilization**: How much of your available revolving credit (such as credit cards) you're using is the second most important factor in your credit score calculation, accounting for 30% of your FICO® Score.\n*   **Length of credit history**: How long you've managed credit makes up 15% of your FICO® Score.\n*   **Credit mix**: How many different types of credit accounts you manage makes up 10% of your FICO® Score.\n*   **New credit**: New credit accounts as well as the inquiries performed when you applied for credit make up another 10% of your FICO® Score.\nBuilding and maintaining good credit is as simple—and complicated—as using your credit responsibly in these five areas.\nFor more, see:\n*   Understanding Credit Score Risk Factors\n*   20 Ways to Improve Credit in 2020\n*   Tips for Improving Credit and Avoiding Pitfalls\n*   Find Out Which Accounts are Hurting Your Credit END
 TITLE: Your 9 Most Common Credit Questions, Answered CONTENT: How Can I Improve My Credit Score?\n----------------------------------\nBy understanding how your credit score is calculated, you can reverse engineer a better score. Consider the five criteria FICO® and VantageScore use to determine your score—payment history, credit utilization, length of credit history, credit mix and new credit—and look for ways to optimize.\nMany tactics take time. For instance, you can (and should) maintain a perfect payment history starting today, but any payments made 30 days or more past due or collections you've already experienced will remain on your credit report for seven years from the first date the account became late. If you're looking to improve your score in the short term, paying down outstanding credit card debt can help reduce your credit utilization ratio and thus improve your score. Or consider factoring in on-time phone and utility bill payments using Experian Boost™† to improve your score instantly.\nFor more, see:\n*   How Can I Increase My Credit Score?\n*   Why Did My Credit Score Drop?\n*   Does Experian Boost Work?\n*   How Long Does It Take to Rebuild Credit? END
 TITLE: Your 9 Most Common Credit Questions, Answered CONTENT: How Often Is My Credit Score Updated?\n-------------------------------------\nYour credit score can change whenever new relevant information is reported to your credit file. Since this can happen at any time, your score could be different daily or even by the minute depending on when you or a lender requests it.\nHere are a few examples of updates that can affect your credit score:\n*   Payments\n*   Changes to an account balance\n*   Increases or decreases in your outstanding debt\n*   New credit inquiries\nBecause your credit score can change frequently, don't worry excessively about minor fluctuations. On the other hand, monitoring your credit regularly using a service like Experian's free credit monitoring can help you stay on top of cyclical changes to your credit score—and help you detect new credit inquiries that may be the result of identity fraud.\nFor more, see:\n*   What if Your Credit Score Doesn't Change?\n*   How Often Is a Credit Report Updated?\n*   Hard vs. Soft Inquiries on Your Credit Report END
 TITLE: Your 9 Most Common Credit Questions, Answered CONTENT: Can I Get a Loan or Credit Card With Bad Credit?\n------------------------------------------------\nYou can find loans and credit cards even if your credit needs a little help. However, the lower your credit score, the less appealing your options may be. Typically, borrowers with fair or poor credit can expect to pay higher interest rates and fees and may need to provide a refundable security deposit on new credit card accounts.\nBorrowers should avoid payday and other types of predatory lenders, who may offer credit without a credit check in exchange for triple-digit interest rates and terms that are nearly impossible to meet.\nNeed ideas? You can explore options with personalized recommendations on credit cards and personal loans based on your credit score using Experian's CreditMatch™.\nFor more, see:\n*   How to Get a Loan With Bad Credit\n*   How to Apply for a Credit Card With Bad Credit\n*   Can You Get Student Loans if You Have Bad Credit Scores?\n*   Where Can I Get a Small Loan With Bad Credit?\n*   How Experian CreditMatch Can Help You Save Money\n*   What Is a Bad Credit Score? END
 TITLE: Your 9 Most Common Credit Questions, Answered CONTENT: How Do I Dispute Something on My Credit Report?\n-----------------------------------------------\nIf your credit report shows information you believe to be inaccurate, you can file a dispute with any of the three credit bureaus. You can dispute information on your Experian credit report by phone or mail, but the fastest route to resolution is online using the Experian Dispute Center. Get full details about the Experian dispute process, what you need to file a dispute and what to expect as the process plays out.\nFor more, see:\n*   What Can't You Dispute on Your Credit Report?\n*   Does Disputing Inaccurate Information on Your Credit Report Lower Your Credit Scores?\n*   What Does It Mean to Clean Up Your Credit? END
 TITLE: Your 9 Most Common Credit Questions, Answered CONTENT: How Can I Get My Credit Score and Credit Report?\n------------------------------------------------\nMonitoring your credit report and score regularly helps you monitor your progress and keep an eye out for fraud. Many financial institutions provide free credit reports, including your bank and credit issuer.\nYou can request a free credit report once a year (once a week through April 2021) from all three credit reporting agencies by visiting AnnualCreditReport.com. Signing up for a free Experian account online allows you to access your credit report and score anytime; scores and reports are refreshed every 30 days. You can also use Experian's free credit monitoring to receive alerts on changes to your credit score, new information in your credit report and credit inquiries.\nFor more, see:\n*   How Can I Get Free Credit Monitoring?\n*   My Free Credit Score END
 TITLE: Platinum Select Mastercard® Secured: Build Credit With No Credit Check CONTENT: No Minimum Credit Requirements\n------------------------------\nWhile secured cards are designed for people who are building or rebuilding their credit, some cards still have minimum credit requirements. The Platinum Select Mastercard® Secured Credit Card doesn't, which means you may be approved even if you recently had a discharged bankruptcy or are brand new to credit and don't have any credit history.\nFirst Progress does a \"soft pull\" on your credit report to verify your identity, but this does not record an inquiry and will not affect your credit. If you don't have a credit file, First Progress may ask for alternative forms of identification, such as a government ID and utility bill.\nKeep in mind, though, you could get denied for non-credit reasons. For example, First Progress doesn't offer cards to residents of Arkansas, Iowa, New York and Wisconsin. You also might not be able to get another First Progress card if you've previously been approved for a card through them. END
 TITLE: Platinum Select Mastercard® Secured: Build Credit With No Credit Check CONTENT: The Annual Fee and Interest Rate Trade-Off\n------------------------------------------\nIdeally, you can pay your bill in full each month and won't have to pay interest on your purchases. If you carry a balance, a lower annual percentage rate (APR) can save you money on interest.\nAll three First Progress cards have the same qualification requirements, benefits and usage fees. The trade-off is that the annual fee is either $29, $39 or $49, and as the annual fee increases, the card's interest rate on purchases and cash advances decreases.\nThe Platinum Select Mastercard® Secured Credit Card is the middle option with a $39 annual fee and moderate rates.\nThis card's APR is 6% lower than its $29 annual fee sister card, the First Progress Platinum Elite Mastercard® Secured Credit Card. With the 6% APR and $10 annual fee differences, it would take about 333 days (about 11 months) for you to break even if you're carrying a $200 balance the entire time. The higher the balance, the more interest accrues each day, and the shorter the break-even point.\nIf having a low APR might tempt you to carry a balance, or you expect to rarely carry a balance and pay it off quickly when you do, the lower annual fee card might be a better option. Also, consider one of the many secured cards that don't have any annual fees. END
 TITLE: Platinum Select Mastercard® Secured: Build Credit With No Credit Check CONTENT: Is This Card Right for You?\n---------------------------\nThe Platinum Select Mastercard® Secured Credit Card could be a good option if you're brand new to credit, or have had credit troubles in the past and want a secured card that doesn't require a credit check. But also consider the lower-fee option from First Progress if you can avoid carrying a balance, and look into secured cards without an annual fee from other companies. END
 TITLE: Can I Buy a House With a 700 Credit Score? CONTENT: Is 700 a Good Credit Score?\n---------------------------\nFICO® Scores☉ fall within a range of 300 to 850, with the range that's considered \"good\" starting at 670. Beyond that, your FICO® Score is considered very good if it's 740 or higher and exceptional at 800 or above.\nYour credit score provides a snapshot of your overall credit health, so a higher credit score is an indicator that you've responsibly managed your credit in the past. As a result, the higher your credit score is, the less risky you'll appear as a borrower and the more confidence lenders will have that you'll repay your debts as agreed. END
 TITLE: Can I Buy a House With a 700 Credit Score? CONTENT: What Credit Score Do You Need to Buy a House?\n---------------------------------------------\nThe minimum credit score required for a mortgage loan can vary based on the type of loan and the lender offering it. That said, here's a general idea of what you can expect with different types of mortgage loans:\n*   **Conventional loans**: The most popular loan type typically comes with a 620 minimum credit score.\n*   **Jumbo loans**: These loans exceed the maximum amount for conforming loans, jumbo loans typically have a higher credit score requirement at 680 or above.\n*   **Federal Housing Administration (FHA) loans**: With a 3.5% down payment, homebuyers may be able to get an FHA loan with a 580 credit score or higher. If you can manage a 10% down payment, though, that minimum goes as low as 500.\n*   **U.S. Department of Veterans Affairs (VA) loans**: VA loans don't technically have a minimum credit score, but lenders will typically require between 580 and 620.\n*   **U.S. Department of Agriculture (USDA) loans**: In general, lenders require a minimum credit score of 640 for a USDA loan, though some may go as low as 580.\nRemember, though, that while meeting the minimum credit score requirement is crucial, it doesn't guarantee that you'll be approved for a mortgage loan. Lenders review several aspects of your financial situation to determine whether you qualify for a loan and what your interest rate will be. END
 TITLE: Can I Buy a House With a 700 Credit Score? CONTENT: What Do Mortgage Lenders Consider When Determining Your Interest Rate?\n----------------------------------------------------------------------\nA mortgage loan is a major financial commitment, both for you and your lender. As such, mortgage lenders look at many different factors during the underwriting process to determine your eligibility and, if approved, your interest rate.\n*   **Credit score**: Again, your credit score is an important indicator of how you've managed credit in the past, and how a lender can expect you to manage your debt payments in the future. The higher your credit score, the better your chances of getting approved and scoring a lower interest rate.\n*   **Down payment**: A down payment reduces some of the risk associated with lending because you're borrowing less money. Most lenders have a minimum down payment requirement, but the more money you put down, the higher your chances of getting a reduced rate.\n*   **Debt-to-income ratio**: Your debt-to-income ratio (DTI), or the percentage of your monthly income that goes toward debt payments, shows how much flexibility you have to take on another debt payment. If it's too high—lenders prefer 36% or less, but some may allow for higher—it could make it difficult to get approved. And the lower your DTI, the less of a risk you pose to the lender, which can result in a lower interest rate.\n*   **Loan term and loan size**: Higher loan amounts and longer repayment terms present more risk to lenders, so they may be associated with higher interest rates. But if you reduce your loan amount by making a large down payment or buying a cheaper home and choose a 15-year mortgage over a 30-year mortgage, it could help you qualify for a lower rate.\n*   **Loan type**: Government-backed loans typically allow for lower credit scores because they're at least partially insured by a government agency if you default. However, the trade-off is that they may end up costing you more in the form of mortgage insurance and other fees, which can impact your loan's annual percentage rate (APR).\n*   **Home location**: The cost of doing business and competition can vary by state and even by city. As a result, some regions may naturally come with lower mortgage rates than others, even if you're working with a national lender.\nThese are just a few of the factors that go into the underwriting process. Lenders may also consider your type of employment (self-employed versus working for a company), other debts and information on your credit reports, recent credit applications, cash reserves and more. END
 TITLE: Can I Buy a House With a 700 Credit Score? CONTENT: Check Your Credit Before Applying For a Mortgage\n------------------------------------------------\nMortgage lenders take an extremely close look at your credit reports before accepting your mortgage application, so it's essential that you know what's on them and how they might impact your chances of getting approved with favorable terms.\nMore specifically, mortgage lenders will look for the following things:\n*   Payment history, including past-due payments, defaults and collection accounts\n*   Past foreclosures, repossessions and bankruptcies\n*   Authorized user accounts versus accounts where you're the primary cardholder\n*   Credit utilization (how much of your available credit on credit cards you're currently using)\n*   Recent credit applications\n*   Disputes\nIf you're thinking of buying a home soon, it's a good idea to start checking your credit report at least three months before you apply. This will give you enough time to look for your risk factors and any red flags that could keep you from getting the financing you need. END
 TITLE: Can I Buy a House With a 700 Credit Score? CONTENT: How to Improve Your Credit Score Before Applying for a Mortgage\n---------------------------------------------------------------\nEven if your credit score is high enough to meet the minimum requirements, it's still wise to work on improving your credit score before applying for a mortgage loan.\nTo start, check your credit report and credit score to see where you stand. Both can give you an idea of which areas could impact your chances of getting approved and how to address them.\nOther ways to get your credit ready for a mortgage include:\n*   Stop applying for new credit.\n*   Limit large purchases on your credit cards.\n*   Pay down credit card debt to reduce your credit utilization rate.\n*   Make sure you pay your bills on time and get caught up on any past-due payments and collection accounts.\n*   Avoid closing old credit card accounts.\n*   Search for and dispute inaccurate information on your credit reports.\nSome of these steps can take some time to start reflecting on your credit score. But if it means shaving even a fraction of a percentage point off your interest rate, making the effort can save you thousands of dollars over the life of your loan. END
 TITLE: Can I Buy a House With a 700 Credit Score? CONTENT: Keep Up the Good Work During the Mortgage Process\n-------------------------------------------------\nMortgage lenders typically run a credit check when you first apply for a loan, then again shortly before closing. Because of this, it's critical that you continue to monitor your credit and practice good credit habits during the mortgage process.\nThe last thing you want is to get approved upfront, find a house then have to back out because a new credit application or a missed payment spooks the lender.\nBut as you continue to practice good credit habits during the mortgage process, it can help ensure you get into the house you want with favorable financing terms. END
 TITLE: How Does a Natural or Declared Disaster Impact My Credit? CONTENT: Ways a Natural or Declared Disaster Can Affect Your Credit\n----------------------------------------------------------\nA natural or declared disaster may destroy your home, damage your possessions or hurt you and your family. But while you're putting your life back together, a disaster can also impact your credit in several ways.\nIf you're injured or have to take time off to care for injured family members, you might not be able to go to work. Or you might be laid off or have your wages or hours cut. With your income reduced, you may find it harder to make your monthly payments, such as your credit card bills, rent, utility payments or mortgage. Missing payments can have a negative impact on your credit score.\nTo help make ends meet, you might need to turn to credit cards to pay ordinary expenses. And even if your income isn't affected, a disaster often means extra expenses. For example, after a flood or fire that damages your home, you might have to pay a hefty insurance deductible, pay a contractor for repairs or even pay hospital bills.\nOn the positive side, your credit cards may be able cover these disaster-related expenses and provide a quick source of needed cash. But using them will increase your credit utilization ratio, or the percentage of your available credit you're using. A credit utilization ratio of 30% or higher will have a more significant negative effect on your credit scores. Ideally, you should try to pay your balances in full each month or at least keep your credit card balances as low as possible.\nDespite the possible negative consequences of a disaster, there are steps you can take to preserve your credit and stay on solid financial footing. END
 TITLE: How Does a Natural or Declared Disaster Impact My Credit? CONTENT: How to Get Help During a Crisis\n-------------------------------\nAfter a natural or declared disaster, your top priorities are taking care of your family, assessing any damage to your home and meeting immediate needs such as food, shelter and medical care. But what should you do if you're having financial difficulty as a result of a natural or declared disaster and think you may have trouble paying your bills?\nContact your lenders and credit card issuers as soon as possible to ask about hardship options. Don't wait until you've already missed a payment: In some cases, you won't be eligible for hardship options unless you contact lenders _before_ your payment is due.\nThe hardship options available to you will depend on your lender and your individual situation. Lenders may temporarily reduce your interest rate or your payments, pause your payments for a period of time, or place loans in deferment. For example, some types of [student loans](') may be eligible for deferment; homeowners may be able to get a mortgage forbearance, which can reduce or suspend mortgage payments for up to 12 months. When a loan is in deferment or forbearance, lenders typically won't report nonpayment to the credit bureaus.\nIn addition to contacting your lenders and creditors, reach out to your utility, cellphone and cable providers, as well as any other monthly services you pay for, to see if they can offer flexible payment options. You'll never know what kind of relief is available unless you ask.\nAre your taxes coming due in the near future? Contact the IRS and your state tax authority to see if you're eligible for any special tax relief as a victim or a natural or declared disaster. The IRS may give you a deadline extension, let you split your tax bill into payments, or even reduce the amount you owe. END
 TITLE: How Does a Natural or Declared Disaster Impact My Credit? CONTENT: Tips for Protecting Your Credit During a Disaster\n-------------------------------------------------\nOnce you've made sure you and your family's immediate needs are squared away, and you start thinking about what it will take to get your life back to normal, it's a good idea to keep an eye on your credit, too.\nUnfortunately, thieves and scam artists often take advantage of disasters to prey on people who are seeking help to rebuild their lives. That's why it's critical to monitor your credit in the aftermath of a disaster. Checking your credit report can help you prevent crimes such as identity theft or fraudulent use of your credit cards. It also helps to protect your credit score.\nBe sure to check your credit with all three major national credit bureaus (Experian, TransUnion and Equifax). You can get a free credit score and a free credit report from Experian. In response to the COVID-19 crisis, you also can request a free credit report once a week from each of the national credit reporting companies through April 20, 2022.\nReview your credit report carefully, looking for any inaccuracies or suspicious activity. If you find anything you believe to be inaccurate, you can dispute the information with the credit reporting agency where you found the information. Disputing information on your credit report is free and easy to do online, by phone or by mail.\nContinue to monitor your credit on a regular basis. Experian's free credit monitoring service is an easy way to get alerts of any suspicious activity on your credit report. END
 TITLE: How Does a Natural or Declared Disaster Impact My Credit? CONTENT: Disaster Plan\n-------------\nWhether it's natural or man-made, a disaster can throw your community, your life and your finances into disarray. But by reaching out to creditors quickly and monitoring your credit report, you can protect your credit and bounce back from a disaster with your credit score intact. END
 TITLE: Do Credit Reports Include Credit Scores? CONTENT: Credit Report vs. Credit Score\n------------------------------\nCredit scores are not on your credit report because they represent different information regarding your credit. Credit reports reflect your credit activity, while credit scores represent a calculation of that activity. You may be able to get your credit score from your bank or credit card issuer, but your credit report only comes from credit bureaus. END
 TITLE: Do Credit Reports Include Credit Scores? CONTENT: What Is My Real Credit Score?\n-----------------------------\nWhen evaluating loan applications, lenders choose the scoring system(s) that best suit their needs. They may use one or more commercial scoring systems (such as the FICO® Score and VantageScore) or even employ their own custom scoring tools. Lenders may choose to base scores from those systems on data from one, two or all three national credit bureaus.\nSince different lenders use different scoring methods, you do not have a single definitive credit score. As a result, the credit score that matters most for you is whichever one a lender is considering in connection with your loan application.\nIf your credit application is ever denied based on a credit score, or if a score leads a lender to offer you credit with interest charges higher than its best available rate, the lender must inform you which scoring system was used and what score you received.\nBecause all credit scoring systems respond similarly to good credit habits, however, steps that bring an increase any one credit score will typically lead to improvement across all credit scoring systems. END
 TITLE: Do Credit Reports Include Credit Scores? CONTENT: How Can I Get My Credit Report and Score?\n-----------------------------------------\nYou should always check your credit report and credit score before applying for new credit. It's also a great way to start taking control of your credit and taking steps to improve it.\nYou can get a credit report from each of the three national credit bureaus free once every 12 months at AnnualCreditReport.com. Experian also offers a free credit report every 30 days when you sign in to your account.\nOnce you get your credit reports, check them carefully for accuracy, and look for signs of activity that could be hurting your credit scores.\nYou can also check and monitor your FICO® Score based on Experian credit data for free so you can see where you stand and track progress toward score improvements. END
 TITLE: What Is a Bank Credit Score? CONTENT: Which Credit Scores Do Banks Use?\n---------------------------------\nMany banks provide your FICO® Score☉ , which is commonly used to make lending decisions, but banks can show you whatever credit score they prefer to use. Quite a few versions of the FICO® Score exist. If this is the score your bank provides, it will most likely show you your FICO® Score 8 or 9 because they're used by the widest variety of lenders.\nAnother commonly used credit score is VantageScore®, which was created cooperatively by the three major credit reporting bureaus (Experian, TransUnion and Equifax). It, too, comes in several versions.\nFICO® Scores and VantageScores are just two types of credit scores that can appear on your app, though, so check with your bank to find out which it uses. There are many dozens of credit scoring models, including those used for only for educational purposes. Your bank may opt for any of them, including the one it produces and uses for its lending decisions. END
 TITLE: What Is a Bank Credit Score? CONTENT: Can I Trust the Score From My Bank?\n-----------------------------------\nAny credit score provided on your bank's app or by your request will be a dependable gauge of your creditworthiness, as long as the information on your credit report is accurate.\nHowever, each credit score is calculated in its own unique way. For example, the numerical range for both general-use FICO® Scores and VantageScores 3.0 and newer is 300 to 850, but each model weighs the information found on your credit report differently:\n*   FICO® calculates all late payments the same way, but VantageScore prioritizes them, with delinquent mortgage payments being the worst.\n*   VantageScore ranks payment history as 40% of your score, but FICO® Scores counts it as 35%.\n*   FICO® Scores calculate all credit inquiries of the same type within 45 days as a single credit inquiry; VantageScore counts multiple inquiries, no matter what they're for, within 14 days as one.\nAdditionally, if your bank provides you with a FICO® Score, it may be based on your credit report from just one credit bureau. The three major credit reporting bureaus may have slightly different information on file about you, which means that your FICO® Scores can vary among them. If one credit report doesn't indicate an account in collections, for example, FICO® Scores created from your credit file with that bureau will be comparatively higher. VantageScores, on the other hand, have a single tri-bureau model, so your scores will be more consistent.\nShould I Check My Score Elsewhere Before Taking Out a Loan?\n-----------------------------------------------------------\nThe credit score your bank provides will help you track your personal credit well-being. When it rises, you'll know you're going in the right direction, even if it's not a score that you're familiar with or that a lender typically uses.\nStill, since lenders use credit scores to determine qualification and to set terms such as interest rates, it's a good idea to check your credit scores with the most common scoring models to take some of the guesswork out of your planning:\n*   **Home loan**: Mortgage lenders often use a FICO® model specifically for mortgages or VantageScore 4.0.\n*   **Car loan:** Before you buy a car, check the credit scores that finance companies tend to rely on for auto loans: FICO® Score 8, FICO® Score 9, FICO® Auto Scores, and VantageScores 3.0 and 4.0.\nCan I Get My Credit Report Through My Bank?\n-------------------------------------------\nThe credit score that you obtain from your bank's app is just the number that represents the information on your credit report. It won't include your full credit report.\nSince the only way to guarantee that your score is accurate is to ensure that what is listed on your credit report is correct, you'll also need to review your credit reports. Checking your credit reports won't affect your credit scores. You can get them from:\n*   **The credit reporting bureaus**: You have the right to access your credit reports directly from the credit reporting bureaus. You can access your Experian report for free and view your credit score that's calculated on the FICO® Score 8 model.\n*   **AnnualCreditReport.com**: Copies of your credit report from all three bureaus are available for free every 12 months. You can order them online at AnnualCreditReport.com, by phone or by mail.\nWhat Should I Do if I'm Not Happy With Any of My Credit Scores?\n---------------------------------------------------------------\nIn the event that your credit scores aren't where you want them to be, you can bring them up by taking action. Since all credit scoring models use only the information found on a credit report, your strategy will be to ensure the data that's listed there is positive.\n1.  Correct errors. With your credit report in hand, you will be able to see if there are any mistakes, such as accounts that were opened fraudulently. If there are, dispute them. Once they are removed, your scores will likely rise.\n2.  Deal with collections. If you have accounts with collection agencies, your credit scores are being negatively affected. But paying off these accounts may make you look better to lenders, since some newer credit scoring models (such as the FICO® 9 and VantageScore® 3.0 and 4.0) ignore collections that have a zero balance.\n3.  Send payments on time. Across credit scoring models, payment history is almost always the most important factor. So if you've made late payments in the past, reverse the situation and meet all of your due dates from this point forward.\n4.  Reduce revolving debt. Credit card balances that are too close to the limit will increase your credit utilization ratio, which will affect your scores. Focus on debt repayment. A good rule of thumb is to owe less than 30% of your credit line, but the lower, the better.\n5.  Use a variety of credit accounts. If you don't have very many credit accounts, or none at all, it's much harder to prove you're an excellent credit customer. If you have a credit card, try to use it at least to make small purchases you pay off every month. Loans and other types of debt also contribute to your credit score, as long as you're responsibly paying them back.\n6.  Avoid excess applications for new credit. Only apply for the credit products you need and will manage well. Credit applications result in what's called a \"hard inquiry\" on your credit report, which can cause your score to drop several points. While this may not seem like much, it can be a difference-maker if your score is right on the edge of a higher or lower scoring range.\nViewing your credit score through your bank's app can be a very useful and educational thing to do. Keep in mind, though, that it's not necessarily a number you can show a lender, as it may differ from the scoring system they use to assess your creditworthiness. Since it will rise and fall with your credit activity, be sure to keep an eye on it. You may not have control over which credit score a lender decides to use, it's important to take actions that contribute to your overall credit health. END
 TITLE: What Is a Bank Credit Score? CONTENT: Should I Check My Score Elsewhere Before Taking Out a Loan?\n-----------------------------------------------------------\nThe credit score your bank provides will help you track your personal credit well-being. When it rises, you'll know you're going in the right direction, even if it's not a score that you're familiar with or that a lender typically uses.\nStill, since lenders use credit scores to determine qualification and to set terms such as interest rates, it's a good idea to check your credit scores with the most common scoring models to take some of the guesswork out of your planning:\n*   **Home loan**: Mortgage lenders often use a FICO® model specifically for mortgages or VantageScore 4.0.\n*   **Car loan:** Before you buy a car, check the credit scores that finance companies tend to rely on for auto loans: FICO® Score 8, FICO® Score 9, FICO® Auto Scores, and VantageScores 3.0 and 4.0. END
 TITLE: What Is a Bank Credit Score? CONTENT: Can I Get My Credit Report Through My Bank?\n-------------------------------------------\nThe credit score that you obtain from your bank's app is just the number that represents the information on your credit report. It won't include your full credit report.\nSince the only way to guarantee that your score is accurate is to ensure that what is listed on your credit report is correct, you'll also need to review your credit reports. Checking your credit reports won't affect your credit scores. You can get them from:\n*   **The credit reporting bureaus**: You have the right to access your credit reports directly from the credit reporting bureaus. You can access your Experian report for free and view your credit score that's calculated on the FICO® Score 8 model.\n*   **AnnualCreditReport.com**: Copies of your credit report from all three bureaus are available for free every 12 months. You can order them online at AnnualCreditReport.com, by phone or by mail. END
 TITLE: What Is a Bank Credit Score? CONTENT: What Should I Do if I'm Not Happy With Any of My Credit Scores?\n---------------------------------------------------------------\nIn the event that your credit scores aren't where you want them to be, you can bring them up by taking action. Since all credit scoring models use only the information found on a credit report, your strategy will be to ensure the data that's listed there is positive.\n1.  Correct errors. With your credit report in hand, you will be able to see if there are any mistakes, such as accounts that were opened fraudulently. If there are, dispute them. Once they are removed, your scores will likely rise.\n2.  Deal with collections. If you have accounts with collection agencies, your credit scores are being negatively affected. But paying off these accounts may make you look better to lenders, since some newer credit scoring models (such as the FICO® 9 and VantageScore® 3.0 and 4.0) ignore collections that have a zero balance.\n3.  Send payments on time. Across credit scoring models, payment history is almost always the most important factor. So if you've made late payments in the past, reverse the situation and meet all of your due dates from this point forward.\n4.  Reduce revolving debt. Credit card balances that are too close to the limit will increase your credit utilization ratio, which will affect your scores. Focus on debt repayment. A good rule of thumb is to owe less than 30% of your credit line, but the lower, the better.\n5.  Use a variety of credit accounts. If you don't have very many credit accounts, or none at all, it's much harder to prove you're an excellent credit customer. If you have a credit card, try to use it at least to make small purchases you pay off every month. Loans and other types of debt also contribute to your credit score, as long as you're responsibly paying them back.\n6.  Avoid excess applications for new credit. Only apply for the credit products you need and will manage well. Credit applications result in what's called a \"hard inquiry\" on your credit report, which can cause your score to drop several points. While this may not seem like much, it can be a difference-maker if your score is right on the edge of a higher or lower scoring range.\nViewing your credit score through your bank's app can be a very useful and educational thing to do. Keep in mind, though, that it's not necessarily a number you can show a lender, as it may differ from the scoring system they use to assess your creditworthiness. Since it will rise and fall with your credit activity, be sure to keep an eye on it. You may not have control over which credit score a lender decides to use, it's important to take actions that contribute to your overall credit health. END
 TITLE: Understanding Credit Score Risk Factors CONTENT: Risk factors accompany your credit score and tell you why you may have been rejected for a loan or credit card or received a higher interest rate than you'd like. These factors vary depending on the model used to calculate your credit score. Scoring models analyze the data in your credit report using complex math to produce a numerical score, and may weigh some factors differently or not at all.\nLenders use many scoring models, but the most popular are the FICO® and VantageScore® models. Each model produces a three-digit score, with higher scores indicating lower statistical likelihood of defaulting on debts. When these models determine your score, they also identify the information in your credit report that had the biggest negative influence on your credit score—and present that information as risk factors.\nRecent versions of both models also generate positive reason codes, indicating the factors having the most favorable influence on your credit scores. END
 TITLE: Understanding Credit Score Risk Factors CONTENT: Why Does My Credit Score Show Risk Factors?\n-------------------------------------------\nWhenever your credit score affects a lender's decision to deny your credit application, or causes you to receive a credit offer or a loan at an interest rate higher than the best one available, the lender must provide an explanation in writing that includes the following:\n*   The credit score the lender used to make its decision\n*   An explanation of the credit scoring model used to calculate that score\n*   A list of at least the top three factors that kept you from getting a higher credit score, ranked from most to least influential\nMost outlets that let you check your own credit score also provide a list of risk factors, and many also list one or more positive factors. If you check your free FICO® Score☉ at Experian.com, you'll find risk factors and positive factors listed right below your numerical score. END
 TITLE: Understanding Credit Score Risk Factors CONTENT: Facts About Risk Factors\n------------------------\nAll credit scoring models you're likely to encounter are broadly sensitive to many of the same basic credit management behaviors: Late and missed payments, high credit card balances and excessive debt tend to lower scores on all models, while timely payments, low credit balances and a wide variety of credit accounts tend to promote higher scores.\nRisk factors show you which specific influences are lowering your scores and can help you focus your efforts on improving them.\nWhen going over your risk factors, it's helpful to understand their context and how they're generated. That knowledge can give you some perspective on how to prioritize your actions. Understanding your risk factors will also help you figure out which ones you can do something about now and which ones will require patience and persistence to address.\nHere's some context and background on credit score risk factors: END
 TITLE: Understanding Credit Score Risk Factors CONTENT: Taking Action in Response to Risk Factors\n-----------------------------------------\nTo prioritize your response to risk factors, look for words that indicate steps you can take immediately.\n*   **\"Too high\"**: These words appearing in your risk factors may indicate that your outstanding card balances are pushing your scores downward or your overall debt level is considered excessive, and your score would benefit by reducing it.  \n    There is, of course, some debt you may not be able to address right away, such as the balance on a mortgage or car loan. But if you have outstanding credit card balances, identifying the accounts that are hurting your score the most and devising a strategy to pay them down as soon as possible would likely benefit your credit score relatively quickly.\n*   **\"Delinquency\" or \"Delinquencies\"**: If these words appear in a risk factor, damage has already been done to your credit score, unfortunately—but you can take steps to prevent that harm from recurring and clear the way for future score improvements.  \n    Delinquencies are missed payments, the single events that do more harm to credit scores than any other. Credit scores can rebound after delinquencies. The amount of time it takes to do so varies depending on the length of your credit history and many other factors. But while these risk factors call for patience, they also suggest getting proactive about making sure you never miss another payment again.\n*   **\"Collection\" or \"Accounts in collection\"**: If you see \"collection\" in a risk factor, it means you've allowed a bill to go unpaid so long that a creditor has turned it over to their collections department or a third-party collection agency. That's not good for your credit score, and it's not good for your peace of mind, since collection agents can be relentless in pursuit of payment and will likely bombard you with mail, voicemail and electronic communications in hopes you'll pay what you owe.  \n    A collections entry remains on your credit report for seven years from the date of the first missed payment that led to the collections action. These entries hurt your credit score most when they're new, and their impact on your score diminishes over time. There's nothing you can do to get a legitimate collections entry removed from your credit report, and debt collectors are not obligated to remove a collection that's been paid. Paying the debt will get the collection entry updated to reflect that, and a paid collection may do less damage than an unpaid one. In fact, some scores exclude paid collections from the calculation, so paying it off could help your scores almost immediately.\n*   **\"Too few\"**: This phrase in a risk factor, when made in reference to different types of credit accounts (revolving accounts or installment accounts, for instance) can be an indication that your credit score would benefit from an improved credit mix—a greater number and variety of loan and credit types.  \n    It's never a good idea to take on extra debt you can't handle, but if and when it makes sense for you to do so, taking out a car loan or opening an additional credit card account might improve your score depending on how you manage it. END
 TITLE: Understanding Credit Score Risk Factors CONTENT: Accept the Risk Factors You Cannot Change\n-----------------------------------------\nCertain risk factors, such as \"short account history\" and \"length of time accounts have been established\" reflect the fact that longer positive credit histories represent less risk. The longer your positive payment history, the better your scores will become.\nSimilarly, a factor such as \"amount owed on mortgage loans is too high\" simply means you've got to keep making mortgage payments on time (and you already know that). If you persevere and avoid missed payments and other missteps, your score will tend to improve over time.\nBy calling out the influences that have the greatest negative impact on your credit score, risk factors can help you decide where to focus your efforts at improving your scores. When you understand how to apply them, they can be effective tools for building credit over time. END
 TITLE: Does an Overdraft Affect Your Credit Score? CONTENT: Do Checking Accounts Appear on a Credit Report?\n-----------------------------------------------\nEvery credit card and loan you have appears on your credit report to indicate you're borrowing and repaying money to a lender. But a debit card pulls from money in a checking account—you're not borrowing from anyone. For that reason, checking accounts aren't included on credit reports.\nThat means even if you spend more than what you have in your account and incur an overdraft fee, the overdraft will not appear on your credit report. Phew.\nBe aware, however, that there is a banking reporting bureau called ChexSystems that keeps tabs on your deposit accounts with banks and credit unions. Your account activity is tracked, including items such as overdrafts, bounced checks, unpaid negative balances, involuntary account closure as well as any fraud related to your card, account or an ATM.\nWhen you apply to open a new bank account, you could be denied if your ChexSystems report shows a history of repeated irresponsible account use. But that doesn't affect your credit or ability to take out a loan or credit card. You should also know that there are ways to clean up your ChexSystems report, and some banks offer second-chance accounts where they're willing to either not use ChexSystems or overlook more dings than they usually do. END
 TITLE: Does an Overdraft Affect Your Credit Score? CONTENT: Should I Keep My Overdraft Protection?\n--------------------------------------\nIf you tend to frequently overdraw your bank account and are paying a lot of money in overdraft fees every month, you might consider opting out of overdraft protection. Just know that this means if you try to make a purchase with your debit card and don't have the funds available in your account, the transaction will be declined. Yes, this could mean a little embarrassment at the checkout counter, but it will keep you from incurring expensive overdraft fees.\nA better solution may be to link a savings account to your checking account as a form of overdraft protection. In this case, if you have insufficient funds in your checking account when you go to make a purchase, the amount will be pulled from the linked account. You won't be declined, but your bank will likely still charge you a fee—though a much lower one than on an overdraft not connected with a savings account. END
 TITLE: Does an Overdraft Affect Your Credit Score? CONTENT: How an Overdraft May Impact Your Credit\n---------------------------------------\nThere is one instance in which an overdraft can hurt your credit: if it's sent to collections. If you pay the fees and negative balance after an overdraft, you'll be fine. But if you don't pay back what you owe, the financial institution can send that debt to collections. Once a collection agency creates an account for you, it can go on your credit report.\nAnytime an account goes to collections, no matter how big or small, it's indicated on your credit report as a delinquency and will stay there for seven years. So make sure to pay back the overdrawn balance and fees as soon as possible to avoid this scenario.\nAvoiding collections and knowing what other factors affect credit can keep your finances in good shape:\n*   **Payment history**: This makes up the biggest part of your credit score, so any late or missed payments will negatively affect your credit.\n*   **Credit utilization**: Creditors prefer that you not use more than 30% of your available credit at any given time, so try to keep your balances reasonably low.\n*   **Credit mix**: Diversity in your account types, such as credit cards and loans, shows your history with various kinds of debts and can help your credit score.\n*   **Hard inquiries**: These appear on your credit report when you've applied for credit and a lender has checked your report. These inquiries can temporarily ding your credit score, especially if you have many of them in a short time.\n*   **Negative information**: Items like charge-offs, foreclosures, bankruptcies and debts in collections can bring down your credit score. END
 TITLE: Does an Overdraft Affect Your Credit Score? CONTENT: Another Way to Improve Your Credit Score\n----------------------------------------\nIf you're reading this article, chances are you have concerns about keeping your credit score as high as possible. While service accounts such as phone utility bills historically have not factored into credit scores, Experian Boost™† now lets you get credit for on-time payments made on your utility and telecom accounts. If you're good about paying your bills on time, you may enjoy a quick improvement to your FICO® Score☉ . END
 TITLE: What Is a Perfect Credit Score? CONTENT: The Perfect Credit Score May Vary\n---------------------------------\nAsk most people what constitutes a perfect credit score, and you'll likely hear 850. That's correct with respect to the generic FICO® Score☉ used in most lending decisions, but it's not always the right answer to the question.\nThe generic FICO® Score has a score range of 300 to 850, so a perfect score on that scale is, of course, 850. The same is true of the most recent scoring models from FICO competitor VantageScore®: Its VantageScore 3.0 and 4.0 models also use a 300 to 850 scale. So while FICO and VantageScore use different mathematical formulas to measure your creditworthiness (and their scores are not generally interchangeable), 850 is a perfect score on both companies' generic scores.\nBut many, many scoring models exist, with different score ranges and measures of perfection that differ with their numerical scales. For instance, the first two versions of the VantageScore model, VantageScore 1.0 and 2.0, use a scale of 501 to 990, so 990 is their perfect ideal.\nFICO also offers specialized industry scores, the FICO Auto Score (fine-tuned to predict failure or success at repaying a car loan) and the FICO Bankcard Score (tailored to predict chances of failing to pay credit card bills). Each score is calculated differently, but both share a score range of 250 to 900, so perfection for each is a score of 900. END
 TITLE: What Is a Perfect Credit Score? CONTENT: How Credit Scores Are Calculated\n--------------------------------\nGeneric credit scores, such as the VantageScore, the FICO® Score, and the FICO Auto and Bankcard scores derived from the generic FICO® Score, are based on credit history data compiled in your credit reports at the three national credit bureaus (Experian, Equifax, and TransUnion).\nCredit score providers use sophisticated software called credit scoring models to analyze your credit report contents. Each model works differently, but all of them compare the credit decisions summarized in your credit report against behaviors that have been linked historically to the inability to pay loans. Based on the appearance (or absence) of those credit scoring factors in your history, their frequency and how recently they occurred, the scoring model assigns you a three-digit score that summarizes your risk of failure to repay. END
 TITLE: What Is a Perfect Credit Score? CONTENT: What to Focus on When It Comes to Your Credit Score\n---------------------------------------------------\nIf a lender provides you with a credit score when you've applied for a loan, or if you [obtain a free FICO® Score from Experian](;br=exp&refUrl=%2Fcredit%2Freports%2Fexperian%2Fnow%2Fsummary&op=FRSC-ASK-ART-102-MDL-XXXXXXX-XX-EXP-VMAC-DIR-3XXXXX-28372X-XXXXX), the score will come with a report, based on your unique credit history, that indicates the top credit scoring factors benefiting your credit score and the top factors preventing it from being higher than it is. You can use this personalized information to help focus your efforts as you work toward a better credit score.\nThe report will detail which factors matter most to you, but the following factors, listed in order of influence, play a large part in determining everyone's credit scores:\n*   **Payment history.** Paying your bills on time is the single biggest factor that promotes a good credit score. Late or missed payments can harm your score, and delinquent accounts—those 90 days or more past due—can hurt it even more. According to FICO, payment history accounts for as much as 35% of your FICO® Score.\n*   **Credit usage rate.** You probably know your credit score will suffer if you max out your credit cards by letting your outstanding balances climb close to your borrowing limits. That's the impact of credit usage, or what lenders and credit scoring pros refer to as credit utilization ratio. You can calculate yours by adding up the balances on your revolving credit accounts (such as credit cards) and dividing the result by your total credit limit. If you owe $4,000 on your credit cards and have a total credit limit of $10,000, for instance, your credit utilization rate would be 40%. A maxed-out card has a usage rate of 100%. Experts recommend keeping your utilization ratio below 30% to avoid lowering your credit scores. Credit usage is responsible for about 30% of your FICO® Score.\n*   **Length of credit history.** Lenders like borrowers with solid track records of managing credit, so credit scores generally improve as your credit history ages. If you're a new credit user, there's really nothing you can do to speed up that process, but making timely payments and good credit decisions will position you to get the maximum benefit as you gain experience. Length of credit history can constitute up to 15% of your FICO® Score.\n*   **Total debt and credit.** The FICO® Score tends to favor a variety of credit, including both installment loans (those with fixed monthly payments, such as mortgages and student loans) and revolving credit (accounts such as credit cards that let you borrow within a specific credit limit and repay in variable amounts over time). Credit mix contributes about 10% of your FICO® Score.\n*   **Recent applications.** When you apply for credit, you trigger activity known as a hard inquiry, in which the lender seeks your credit score (and, often, your credit report). Hard inquiries typically cause your credit scores to decrease temporarily. If you keep making timely payments, your scores typically recover quickly. (When you check your own credit, the result is a soft inquiry, which does not affect your credit score.) Recent credit applications can account for up to 10% of your FICO® Score.\n*   **Public Information.** If bankruptcies, foreclosures, vehicle repossessions, and other public records appear on your credit report, they can have severe negative effects on your credit score. Their impact will fade with time, but they can remain on your credit reports for years (a Chapter 13 bankruptcy remains for a full decade) and may make it difficult for you to get new credit during that interval.\nBenefits of Perfect Credit\n--------------------------\nA perfect credit score is an admirable (if lofty) goal and one that's achievable with lots of dedication and patience. But as a practical matter, lenders consider any exceptional FICO® Score—that's a score of 800 or greater on the 300 to 850 scale—a mark of excellent credit. Achieving a score in that range is likely to give you the same advantages as a perfect score, including:\n*   **Access to a wide range of loan products.** If you have an exceptional FICO® Score, you'll likely find lenders competing for your business, with attractive loan and credit card offers. You'll also probably have multiple low-interest options when applying for a car loan or mortgage.\n*   **Higher borrowing limits.** With an exceptional credit score, you can expect new credit card offers to include generous spending limits, and you should feel comfortable asking the lenders you have accounts with to increase your limits as necessary. Higher limits make larger purchases possible, and also mean you can carry larger short-term balances without exceeding the 30% usage rate experts warn can hurt your credit score.\n*   **Excellent rate shopping.** It's always smart to apply to multiple lenders when seeking credit to be sure you get the lowest interest rates and fees you qualify for, but it's especially advantageous when you have an exceptional credit score because lenders will likely extend you the best deals they offer. One percentage point less on a mortgage loan can save you tens of thousands of dollars over the life of the loan, so that can mean major savings.\n*   **The most rewarding credit cards.** In addition to credit cards with rates and fees, an exceptional FICO® Score can help you qualify for cards with cash back offers, travel points and other types of incentives and bonuses. Card issuers reserve their most appealing offers for borrowers with top-notch credit, and these cards can help you save big on air travel, lodging, car rentals and purchases at your favorite retailers, and more.\n*   **Insurance discounts.** Some auto insurance companies factor in credit scores when determining monthly premiums. You can't be denied coverage based on a low credit score, but an exceptional score could help you save on premiums.\n*   **More housing options.** Landlords often use credit scores to screen tenants and gauge their financial trustworthiness. An exceptional credit score could increase your chances of getting into a house or apartment and spare you from having to pay a higher security deposit.\n*   **Security deposit savings.** If you are a new customer, a utility company may look at your credit report to get a sense of how likely you are to pay your bills on time. An exceptional credit score reduces your odds of needing to pay a security deposit when you sign up for service.\nHow to Get an Excellent Credit Score\n------------------------------------\nYou likely have dozens, if not hundreds, of credit scores, all with somewhat different criteria for excellence. Achieving perfection on all of them is likely impossible. But fortunately, decisions that lead to score improvements under any scoring system will tend to boost scores under all of them.\nThere are no magic formulas that will give you an exceptional credit score overnight, but by focusing on the factors that contribute to your credit score—with particular attention to any specific factors called out in your credit score report—can help you make steady progress toward credit scoring excellence, and even perfection.\n* * *\n**Want to instantly increase your credit score?** Experian Boost™ helps by giving you credit for the utility and mobile phone bills you're already paying. Until now, those payments did not positively impact your score.\nThis service is completely free and can boost your credit scores fast by using your own positive payment history. It can also help those with poor or limited credit situations. Other services such as credit repair may cost you up to thousands and only help remove inaccuracies from your credit report. END
 TITLE: What Is a Perfect Credit Score? CONTENT: Benefits of Perfect Credit\n--------------------------\nA perfect credit score is an admirable (if lofty) goal and one that's achievable with lots of dedication and patience. But as a practical matter, lenders consider any exceptional FICO® Score—that's a score of 800 or greater on the 300 to 850 scale—a mark of excellent credit. Achieving a score in that range is likely to give you the same advantages as a perfect score, including:\n*   **Access to a wide range of loan products.** If you have an exceptional FICO® Score, you'll likely find lenders competing for your business, with attractive loan and credit card offers. You'll also probably have multiple low-interest options when applying for a car loan or mortgage.\n*   **Higher borrowing limits.** With an exceptional credit score, you can expect new credit card offers to include generous spending limits, and you should feel comfortable asking the lenders you have accounts with to increase your limits as necessary. Higher limits make larger purchases possible, and also mean you can carry larger short-term balances without exceeding the 30% usage rate experts warn can hurt your credit score.\n*   **Excellent rate shopping.** It's always smart to apply to multiple lenders when seeking credit to be sure you get the lowest interest rates and fees you qualify for, but it's especially advantageous when you have an exceptional credit score because lenders will likely extend you the best deals they offer. One percentage point less on a mortgage loan can save you tens of thousands of dollars over the life of the loan, so that can mean major savings.\n*   **The most rewarding credit cards.** In addition to credit cards with rates and fees, an exceptional FICO® Score can help you qualify for cards with cash back offers, travel points and other types of incentives and bonuses. Card issuers reserve their most appealing offers for borrowers with top-notch credit, and these cards can help you save big on air travel, lodging, car rentals and purchases at your favorite retailers, and more.\n*   **Insurance discounts.** Some auto insurance companies factor in credit scores when determining monthly premiums. You can't be denied coverage based on a low credit score, but an exceptional score could help you save on premiums.\n*   **More housing options.** Landlords often use credit scores to screen tenants and gauge their financial trustworthiness. An exceptional credit score could increase your chances of getting into a house or apartment and spare you from having to pay a higher security deposit.\n*   **Security deposit savings.** If you are a new customer, a utility company may look at your credit report to get a sense of how likely you are to pay your bills on time. An exceptional credit score reduces your odds of needing to pay a security deposit when you sign up for service. END
 TITLE: What Is a Perfect Credit Score? CONTENT: How to Get an Excellent Credit Score\n------------------------------------\nYou likely have dozens, if not hundreds, of credit scores, all with somewhat different criteria for excellence. Achieving perfection on all of them is likely impossible. But fortunately, decisions that lead to score improvements under any scoring system will tend to boost scores under all of them.\nThere are no magic formulas that will give you an exceptional credit score overnight, but by focusing on the factors that contribute to your credit score—with particular attention to any specific factors called out in your credit score report—can help you make steady progress toward credit scoring excellence, and even perfection. END
 TITLE: What Kinds of Bills Affect Credit Scores? CONTENT: Types of Accounts That Can Impact Credit Scores\n-----------------------------------------------\nCredit scoring software programs, known as scoring models, perform complex statistical analysis on the data in your credit reports—the records showing your history of borrowing money and paying your bills. Scoring models generate a three-digit score, based on your predicted likelihood of paying your bills. Models may use different score ranges, but all typically assign higher scores to individuals seen as likelier to repay their loans and lower scores to those seen as riskier borrowers.\nWhile no two models operate identically, the FICO® Score☉ , used by 90% of top lenders, says payment history—your pattern of paying bills on time—is the single most significant influence on your FICO® Score, responsible for as much as 35% of the score. FICO rival VantageScore® has similarly cited payment history as the most influential factor affecting its scores.\nTraditionally, credit reports have recorded payments on two types of debt: installment loans and revolving credit accounts.\n*   With an installment loan, you borrow a lump sum of money and pay it back in a series of regular payments over a set number of months. Each payment, or installment, is typically the same amount. Student loans, car loans, and mortgages are all examples of installment loans.\n*   Revolving loans, such as credit card accounts and some kinds of home equity loans, allow you to borrow against a specified borrowing limit and make repayments of varying amounts, as long as you meet a required minimum payment each month. END
 TITLE: What Kinds of Bills Affect Credit Scores? CONTENT: How Service Accounts Can Now Impact Credit\n------------------------------------------\nDesigners of credit scoring models have long known that a pattern of timely payments on any bills—not just bills for loans and credit cards—indicate financial discipline and good money management habits. A number of existing scoring models, including FICO® Score 8, are designed to take non-debt payments such as those for phones, utilities, and cable service into account if they appear on your credit report.\nHistorically, that has been a very big \"if.\" Very few individuals have seen credit score benefits from service payment data because very few phone, utility and cable providers share payment information with the national credit bureaus. When they do, they tend to benefit your FICO® Score 8 credit score.\nA new free program called Experian Boost™† aims to change that. If you enroll in the Boost program and allow Experian to securely access your online utility and telecom payment history, payments on authorized accounts will begin appearing on your Experian credit report and your FICO® Score may get a boost. Enrolling in Boost also gives you access to your Experian credit report and FICO® Scores, so you can track your progress.\nThe exact increase will vary, depending on the nature of your credit history, and some Boost users will see no change in score or even a decrease. Boost only considers on-time payments, so the occasional late payment won't affect your credit score.\nKeep in mind, however, that—unrelated to the Boost program—if you fail to pay your bill to the extent that your provider closes your account and pursues back payments through a collections process, that will be noted on your credit file and could severely reduce your credit scores. (If you have concerns about any of your utility or phone bills, you can remove them from Boost at any time.) Also, note that not all lenders use FICO® Scores for lending decisions and that Boost will not affect any credit scores based on data from credit bureaus other than Experian. END
 TITLE: What Kinds of Bills Affect Credit Scores? CONTENT: Other Credit Score Factors\n--------------------------\nWhile payment history is the most significant credit scoring factor, several other factors affect your credit scores. Fair, Isaac Corp., the maker of the FICO® Score, ranks the following additional factors, in decreasing order of influence on your FICO scores:\n*   **Usage rate on revolving credit** is responsible for nearly one-third (30%) of your credit score. Usage rate, or credit utilization ratio, is a technical way of describing how close you are to \"maxing out\" your credit card accounts. You can calculate your total utilization rate by dividing the sum of all balances by the sum of all spending limits. Most experts agree that utilization rates in excess of 30%, on individual accounts and all accounts in total, tend to drive down credit scores.\n*   **Age of credit accounts** is responsible for as much as 15% of your credit score. If you pay your bills on time and keep your usage rates within prudent ranges, then the longer you're a credit user, the higher your credit score is likely to be. There's not much that can be done about that if you're a new borrower, but if you manage your credit carefully, your credit score will tend to increase over time.\n*   **Total debt composition**, or credit mix, is responsible for about 10% of your credit score. The FICO credit scoring system tends to favor individuals with multiple loan accounts, consisting of a mix of installment loans and revolving credit.\n*   **Credit applications and new credit accounts** typically have short-term negative effects on your credit score. When you apply for new credit or take on additional debt, lenders consider you at greater risk for being able to pay your bills. Scoring systems such as FICO can cause scores to dip a bit when that happens, but your scores will typically rebound within a few months as long as you keep up with all your payments. New credit activity can contribute up to 10% of your overall credit score.\n*   **Negative entries** on your credit report, such as bankruptcies, can have severe negative impacts on your credit scores. Because they do not appear in every credit report, these entries cannot be compared to other credit score influences in terms of percentage, but they can outweigh all other factors and severely lower your credit score. A bankruptcy, for instance, can remain on your credit report for up to 10 years, and may effectively prevent you from getting credit for much or all of that time.\nIf you'd like to see your timely payments of utility and telecom bills reflected in your credit score and would like to gain free access to your Experian credit report and FICO® Score 8 credit score in the bargain, consider enrolling in the Experian Boost program. In the meantime, make sure you are practicing responsible credit habits and checking your credit report to ensure you're doing everything you can to continue building your credit history. END
 TITLE: Why Do I Have So Many Credit Scores? CONTENT: Why Are There so Many Different Credit Scores?\n----------------------------------------------\nThe world of credit scores can be complicated and hard to follow. Couple that with the importance of credit scores—frequently touted as magical numbers that serve as the key to your financial life—and you can work yourself into a tailspin trying to access them, decipher them and, most important, figure out how to get the most out of them.\nThe key is not to get hung up on any one credit score. Instead, it's more important to look at the range your credit score falls in, the variety of scores out there, and the principles used to create them. Credit scores are derived from complex mathematical formulas that look at the information in your credit reports and generate a number designed to communicate the likelihood that you're going to pay your bills on time.\nDifferent credit scoring models weigh this information slightly differently, which is why we each have so many scores. The existence of multiple credit scores allows lenders to develop scores to address specific needs, such as consumers who don't have a deep credit history. We'll explain more about how credit scores work a little bit later in the article.\nFor this story, I checked nine different places for my credit score, which I was able to pull either for free or a small fee.\nThe result? Twelve different scores (two services offered me multiple scores based on information from different credit bureaus). There were only two numbers that appeared more than once; the rest of the scores were all unique. Right now, if you asked me what my credit score is, I could truthfully tell you it's 777. I could also say 745. Both numbers are correct. END
 TITLE: Why Do I Have So Many Credit Scores? CONTENT: So What Exactly Is a Credit Score?\n----------------------------------\nA credit score is a three-digit number that's calculated by applying a mathematical algorithm to the information in one of your three credit reports, which are generally updated each month.\nGenerally, the higher your credit score, the more likely you are to receive favorable terms on a loan, like lower interest rates and higher dollar limits. That can translate to significant money over time, especially on big-ticket purchases like a home, where a slightly lower interest rate can save you thousands of dollars over the life of your mortgage. Higher credit scores also qualify you for the best deals on credit cards and other personal loans.\nBut, as you may have surmised from my list of varying credit scores, you don't just have one. In fact, you likely have dozens of credit scores, if not hundreds or even thousands. That's because there is no uniform algorithm employed by all lenders or other financial companies to compute credit the scores.\n\"There is no one score,\" says Veronica Herrera, director of product solutions at Experian. \"There are hundreds of different scoring models used by lenders. And there are thousands of more custom scores.\"\nCustom scores are based on specialized risk algorithms tailored to a specific lender for a specific purpose, like auto loans. A custom scoring model may place more or less weight on certain factors based on the type of credit that will be extended and the potential risks associated with it.\nYour credit history is maintained in reports at three different credit bureaus: TransUnion, Equifax, and Experian, the publisher of this piece. Because all lenders don't always report information to each bureau, the same scoring model using the data from one credit bureau could yield a different score when using data from another credit bureau.\nThere's an important distinction you should know as well: The credit reporting companies are not the entities that make loan and credit decisions. If you have credit denied or are approved for a higher interest rate than desired, that's because a specific lender or creditor reviewed various criteria such as your credit scores, information from your credit report (such as your past payment history), and other factors not included in your credit report (such as your income), and then decided not to extend you additional credit. Learn more here about how information gets on your credit report here. END
 TITLE: Why Do I Have So Many Credit Scores? CONTENT: What Is a FICO® Score☉ ?\n------------------------\nWhile there are multiple scoring models out there, one of the most frequently used by lenders and other businesses is known as the FICO® Score, whose scale ranges between 300 and 850. (Most scoring models use a similar scale, though some go as low as 250 and as high as 900.) But even FICO® Scores can vary because there are several versions of the FICO scoring model. The most widely used FICO® version is FICO® 8, while the most recent one is FICO® 9.\nIn addition to the FICO® base score, there are also industry-specific scores issued by FICO®. These scoring models are developed with a specific goal in mind and allow lenders to be highly specific in their prediction model. For example, if you're planning on buying a car, you might want to check your FICO® Auto Score, because it's one of the most commonly used in auto lending decisions. If you're looking for a new credit card, FICO® Bankcard Score is one many credit card issuers use.\nOne other commonly used credit score is the VantageScore®, which is based on a scoring model developed in 2006 by the three major consumer credit reporting companies—Experian, Equifax, and TransUnion. The most recent versions are VantageScore® 3.0, the most widely used version at Experian, and the newly introduced VantageScore® 4.0, which are both also based on a 300 to 850 scale. END
 TITLE: Why Do I Have So Many Credit Scores? CONTENT: Where Can You Find Your Credit Scores?\n--------------------------------------\nChecking your credit scores has never been easier than it is today. In fact, you likely already have free access to some of your credit scores. When I was seeking my credit scores, I started with the credit cards in my wallet.\nEvery single one of my card issuers offered me access to some version of my credit score for free. I figured this was a good place to begin, considering these banks already had access to my sensitive financial data.\nMy Capital One card provided a service called CreditWise, which showed a VantageScore® 3.0 score calculated from information on my TransUnion credit report. Citi showed me a FICO® 8 score based on data from Equifax, while American Express displayed a FICO 8 calculated using information from my Experian credit report. Discover, Chase and Barclays also offered similar services.\nNext, I checked Mint.com, a money management website I use to track my financial accounts. Mint offered me a free VantageScore® 3.0 as well, based on data from my TransUnion report. I also remembered that years ago, I had signed up for an account at Credit Karma, a website that offers free credit scores for educational purposes. I logged in and it updated my information, yielding the same VantageScore® 3.0 also based on TransUnion data. The number produced by Mint and Credit Karma was the same, which makes sense because they both employ the same scoring model using data from the same credit bureau.\nFinally, I am also a premium member of Experian IdentityWorks, which includes quarterly access to my credit reports at all three bureaus and the FICO® 8 Scores calculated from them, in addition to credit score tracking over time. I was able to see my three FICO® 8 Scores based on data from each credit bureau. (For the record, the three scores from each different bureau were very close, but not exactly the same. It reminded me to examine my credit reports more closely to see where the discrepancies might come from.)\nThe bottom line is that you can find your credit scores in four ways:\n*   By checking if your credit card issuer or other lender might offer it for free.\n*   By visiting a free credit scoring website like freecreditscore.com.\n*   By purchasing your score from one of the three consumer credit reporting agencies, such as Experian, or directly from credit scoring company FICO®.\n*   By visiting a nonprofit credit counselor, who might be able to pull your score for free and go over what it means. (Find one through the National Foundation for Credit Counseling.) END
 TITLE: Why Do I Have So Many Credit Scores? CONTENT: How Do You Make Sense of Different Credit Scores?\n-------------------------------------------------\nIf there isn't one credit score to rule them all, what's the point of even looking them up? And if some banks and lenders develop their own custom scoring models, isn't seeking your credit scores a futile exercise?\nNot exactly.\n\"Checking one score and getting too attached to that number is not practical,\" says Herrera. But looking at a few multiple scores is a smart exercise to help you understand how your credit is doing.\n\"Most credit scoring models do the same thing—assess risk. Each model approaches it in a slightly different way. But the variables that go into predicting default behaviors are all similar: Have you been late on your bills before? Are you late frequently? Is your credit utilization high?\" Herrera explains. \"Most credit models do a decent job of predicting risk. So when you get a score that tells you you're high risk or low risk, generally other scores will do the same.\"\nThat was evident by all the credit scores I pulled. Notably, with one exception, none of the scores generated by either the credit card issuers, the free services or Experian IdentityWorks yielded exactly the same number. But all the scores came with some context about what the numbers meant, including a scale that consisted of four to six bands divided up into categories that were all some variation of the following: exceptional, very good, good, fair, poor.\nMy scores consistently fell into the second-highest category of credit, though many services had different names for the same bands.\"That's key,\" says Barry Paperno, a consumer credit expert who has worked for both FICO and Experian.\nBecause we all have so many credit scores in our name, there is no point in chasing every single one down—because you likely don't even have access to most of them. Instead, it's smarter to look at a few and compare the results.\n\"Do your scores vacillate wildly?\" asks Paperno. If they do, that could be a red flag that something is off on one of your credit reports. But if your scores generally fall in the same range, then you should have a good sense of how you're doing.\nAnd when you are looking at your scores and how they've changed, check whether they go up or down in a similar direction.\n\"What makes one score go up vs. down is always going to be the same—it just depends on the degree,\" says Paperno.\nMost services that provide you with your score offer context on what the number means and why it falls in the range it does, Paperno notes. Pay attention to the factors that are dragging your score down. They should be relatively similar across all the numbers you pull. If they're not, that could be an indication that there's something awry on one of your credit reports, which you should follow up on. END
 TITLE: Why Do I Have So Many Credit Scores? CONTENT: How Do You Improve Your Credit Scores?\n--------------------------------------\nOnce you know generally how your scores fare, you might want to take steps to improve your credit standings. Herrera and Paperno agree on how to accomplish that: Look at the factors bringing your scores down, and do the opposite.\nThat means if you've had a late payment, focus on establishing a long-term pattern of paying bills on time. If you have too many inquiries, hold off on applying for new credit. If your credit utilization is too high, pay down some of your debt. (Click here for a comprehensive review of the various factors that can impact your credit scores.)\nPaperno adds that if you're planning to apply for a big loan in the near future, like a mortgage or auto loan, you'll want to pay close attention to your scores. This is especially important if your scores are in one category, like \"good,\" but maybe just a few points shy of getting moved into the next higher echelon. Mortgage lenders use scores from each bureau, so you should check all three reports. Once you know your scores, you can spend some time in the months before your loan application taking steps to improve your scores as much as possible in order to secure the best loan terms.\nBut if you're simply monitoring your score or rebuilding credit, it's a good practice to check a different credit report every four months. You're entitled to a free report from each bureau once a year from AnnualCreditReport.com, so rotating which report you check every four months will allow you to get through all three reports in one year.\nMonitoring your credit scores is also a smart move. If you see a big change in one of your scores, that's a good sign to investigate the reason and pay attention to what's happening on your credit reports. You can also get a free copy of your Experian credit report here on Experian.com.\nAs for my own credit scores, they're in pretty good shape. But regardless of the varying numbers, they all fall into the second-highest possible tier of scores. That's something that irks my competitive nature, so now that I'm armed with the knowledge of what's keeping them from being perfect, I've already planned my strategy to bring the numbers up. For me, that means bringing my credit utilization down and making sure I never miss a bill again. The strategy is working—I checked all my scores again, and a few have already inched up. I'll take that as a win. END
 TITLE: Why a New Credit Card May Not Show on a Credit Report CONTENT: How Long Does It Take for a New Credit Card to Show on a Credit Report?\n-----------------------------------------------------------------------\nLet's say you found the perfect credit card. You submitted an application online and were instantly approved. When the card arrives about a week later, you follow the activation instructions and make a few charges. With all that activity, the account should be appearing on your credit reports by that point, right? Not necessarily.\nIt's up to the credit card company to send information about the account to the three major credit reporting bureaus: Experian, TransUnion and Equifax. When the bureaus receive account information, they will begin to include it in your credit reports. Each month thereafter, the credit card company will update the bureaus with the most recent information about your balance and payment activity.\nBut this process can take time at first. Each credit card company sets its own due dates and payment cycles, and updates the bureaus at different times of the month. That includes when it first notifies the bureaus that you've been issued a new credit card.\nDepending on the credit card company, you can expect the credit card to appear on your credit report 30 to 60 days after the date it was granted, depending on when the card's billing cycle ends. You may have to contact your credit card issuer to learn your billing cycle's end date. END
 TITLE: Why a New Credit Card May Not Show on a Credit Report CONTENT: Reasons Why an Account May Not Be Appearing\n-------------------------------------------\nWhile a delay in a new account showing up on a credit report can often be chalked up to a card issuer's timeline in furnishing your account information to the credit bureaus, there are a few other potential explanations. For example:\n*   **Identification mix-up**: It's possible that your name and Social Security number were not entered correctly when you applied for the credit card. In that case, the account is not being associated with your credit file, so it won't be connected to you.\n*   **The company doesn't participate in the credit reporting process**: There is no law that requires a creditor to send information to the credit reporting bureaus. Most credit card companies do, but a few choose to work with only one or two of the bureaus, or even opt out entirely. It's often wise to check with a card issuer to make sure you understand their credit reporting process before you apply for the card.\n*   **Tech glitch**: Although uncommon, a technical issue may prevent an account from being shown on your credit report, even if the lender is providing the information to the bureaus. For example, this could happen because two credit card companies are in the process of merging. In such situations, the account may be absent from your credit report until after the consolidation is complete. The good news: The omission is short and temporary, so there's nothing you have to do except wait.\n*   **It's under a different company name**: It's also possible your new credit card is on your report after all, but isn't appearing as you'd expect so you're overlooking it. Maybe you opened a retail credit card and are looking for it to show up under the department store's name. Instead, look for the date the account was issued and the credit limit. You may see that it's being listed under the name of the bank that manages the store's account. Mystery solved! END
 TITLE: Why a New Credit Card May Not Show on a Credit Report CONTENT: What to Do if Your Credit Card Is Still Not Showing Up\n------------------------------------------------------\nDon't panic if the credit card you opened is not appearing on your Experian credit report. It may be on the other two or just one, so pull your credit reports from the other credit reporting bureaus and read them over. Hopefully it will be on at least one of them. You can get your credit reports from all three credit bureaus through AnnualCreditReport.com or through Experian.\nNot there? Your credit card issuer may not send your account activity to any of the bureaus. In the future, select an issuer carefully to be sure it will appear on all three of your credit reports. If necessary, call the company to find out before you apply.\nIn the event you do spot issues, such as identification errors, take action to rectify the problem. Call the credit card company and update your identification information. To make sure lenders get the full picture of your payment history, you'll want all your accounts to show up on your credit report and factor into your credit scores.\nHaving a long history of on-time payments in your credit file will help your credit rating rise. So if your credit card isn't showing up, consider adding other types of information to your credit report. By signing up for Experian Boost™† , you can have your utility and cellphone bills added to your credit report at no extra cost to you—with the likely benefit of a credit score increase. It makes sense to have those timely payments work in your favor! END
 TITLE: Is It Better to Pay My Credit Card Bill Weekly or Monthly? CONTENT: How Often Should You Pay Off Your Credit Card?\n----------------------------------------------\nCredit cards are useful tools for building credit, since keeping your credit utilization low and paying your bill on time will have a significantly positive impact on your credit score.\nBut to get the most benefit from your cards, commit to charging only an amount that you can afford to pay off by your due date each month. This will make it less likely that your balance will balloon to a point at which it's overwhelming, possibly keeping you in a cycle of making only the minimum payment and accruing interest. If making one larger payment each month doesn't work well with your budget, it may be wise to pay down your balance more often.\nMaking smaller weekly payments, or even two or three payments in a month, spreads out the impact on your checking account balance. You won't have to worry about a large withdrawal exiting your account once a month, potentially around the time when you also need to account for rent and other bills.\nPlus, consistently reducing your credit card balance throughout the month means any interest that accrues will accrue on a smaller balance, limiting the overall interest you're charged. (If you pay off your full balance each month as planned, though, you'll avoid paying any interest at all.)\nFinally, making multiple payments regularly lowers your credit utilization ratio, which measures the amount of available credit you're using at any particular time. Experts recommend keeping utilization below 30%, and the lower, the better. Making an extra payment before your statement closing date means the credit card issuer will report a lower balance to the credit bureaus, which could help your credit score.\nAlso, since credit card issuers report your balance data to the credit bureaus at different times throughout the month, your credit score could benefit from multiple small payments and a consistently low credit utilization ratio—more so than, for example, high credit utilization all month followed by a full payment after the statement closing date that brings it to 0%. END
 TITLE: Is It Better to Pay My Credit Card Bill Weekly or Monthly? CONTENT: Making Multiple Payments Can Help You Avoid Late Payments\n---------------------------------------------------------\nYou're not required to wait for your monthly statement to make payments on your credit card; you can make a payment at any point in the month, either to cover your full balance or part of it.\nThe best reason to do so is to avoid late credit card payments. Since payment history is the most consequential factor in your credit score, a single late payment can lead to a drop in your score. Paying off your card early—by paying the minimum amount early in the month, for instance, and the rest of your balance later—means you won't pay a late fee.\nTo ensure you never miss a bill and make every effort to pay off the entire balance each month, consider setting up autopay with your credit card issuer. You'll choose a linked account, such as a checking account, and an amount to pay each month. One of the easiest options is to instruct the issuer to automatically transfer your full statement balance from checking to your card account. This way, your statement balance will always reset to zero for the following statement period. However, if there's a chance you won't have enough money in your account to cover the payment, this is not a good option. Instead, you could set up autopay for the minimum payment, then manually make extra payments throughout the month.\nIn either case, it's crucial to confirm that you have enough money in your linked account to avoid potential charges for overdrafts. END
 TITLE: Is It Better to Pay My Credit Card Bill Weekly or Monthly? CONTENT: How Does Carrying a Balance on Your Credit Card Affect Your Score?\n------------------------------------------------------------------\nIt's a common myth that carrying a balance and paying off your credit card debt over time will benefit your credit score. In fact, paying off your bill every month, on time, and keeping your balance low throughout the month is best for your score. Consumers with the highest scores are also generally those who limit their credit card balances to 10% or less of their credit limit.\nPaying off your balance each month, either with one payment or multiple, shows that you exercise responsible payment behavior, and your credit score will reflect that. You'll also save money on interest charges and avoid the stress of a growing balance. END
 TITLE: Is It Better to Pay My Credit Card Bill Weekly or Monthly? CONTENT: Choosing a Payment Schedule\n---------------------------\nThe most important action to take is to pay off your full balance each month, no matter how many payments it takes to get there. Weekly payments could strengthen your credit, but consider that as an added bonus. If one full monthly payment seems more manageable, you'll still see a positive credit impact, and you'll keep debt under control—perhaps the best outcome of all. END
 TITLE: 5 Tips for Borrowing Money From Friends and Family CONTENT: 1\\. Look at the Bigger Financial Picture\n----------------------------------------\nAsking a friend or family member for financial help can feel awkward or put the other person in a difficult position. Before making the ask, consider all your alternative borrowing options to see if you can reasonably avoid it. Those with good credit might consider a personal loan or credit card to cover the cost. Interest rates may be higher, but it may still be a manageable way to get through it without asking friends or family for money.\nWhat do you need the money for? Borrowing from someone you know to buy a new guitar amp or handbag may be unwise. It's an option to explore, however, if you're up against an unexpected expense like a costly home or car repair, or you're at risk of being evicted.\nIf you're hoping to borrow from family or friends to buy a home, know that mortgage lenders like to substantiate all large deposits. The loan will count toward your overall debt, which could affect your eligibility. END
 TITLE: 5 Tips for Borrowing Money From Friends and Family CONTENT: 2\\. Be Realistic About How Much Money You Need\n----------------------------------------------\nThere are some situations that may require you to ask friends or family for financial help. Run the numbers to get a ballpark idea of how much money you really need to borrow. If you've suffered a job loss, for instance, eliminate any unnecessary expenses from your budget and factor in what you can expect from unemployment benefits. You may find that you don't need to borrow quite as much as you originally estimated.\nJust make sure to be realistic so that you don't have to go back to your loved one to ask for more. You also want to make sure you don't borrow too much, which can create trouble of its own. You may end up owing more than you can afford to repay, especially if the person charges you interest on the loan. These are all factors that can compromise your relationship with the person as well as your financial health. END
 TITLE: 5 Tips for Borrowing Money From Friends and Family CONTENT: 3\\. Know Who (and How) to Ask\n-----------------------------\nOnce you know how much money you need to borrow, think about the people in your life who might be in a position to provide financial help. A retired parent, for example, may be on a fixed income or have to draw from a taxable account to give you the support you need. Meanwhile, another relative or friend with a well-paying job may have more than enough in savings to offer a short-term loan. Be careful when making assumptions about another person's finances, and avoid asking someone who may jeopardize their own financial health in order to help.\nAnother thing to think about is your relationship history. If there's tension or volatility there, asking for a loan could be a recipe for disaster. If that's not the case, it's still wise to consider whether you've borrowed money from this person in the past. If so, was it a positive experience for both parties? If you decide to approach them again, be mindful that you aren't making them feel like an ATM. Clearly lay out your intentions for the money, along with your proposed repayment timeline. Offering to pay interest can also show that you want them to benefit from the transaction as well. END
 TITLE: 5 Tips for Borrowing Money From Friends and Family CONTENT: 4\\. Create a Loan Contract\n--------------------------\nThis step might be easy to overlook, but a simple loan contract can provide your friend or family member with peace of mind and make them feel more comfortable providing a loan. Having things in writing can also help keep both parties honest and prevent finger-pointing down the road that could ultimately hurt the relationship.\nA loan agreement, often called a promissory note, is a legally binding document that outlines the terms and conditions of the loan. This can include:\n*   How much you're borrowing\n*   If the lender is charging interest or requiring collateral\n*   The repayment timeline\n*   How much your payments will be and when they'll be due\nBy signing it, you're acquiring the debt and giving the lender the power to take you to small claims court if you default. This may sound extreme, and it may be unlikely that things ever come to that, but it's important to understand that borrowing money from friends or family should be treated like any other loan. It's not typically necessary to get a lawyer involved, since you can create a standard promissory note using a template from an online legal services provider. END
 TITLE: 5 Tips for Borrowing Money From Friends and Family CONTENT: 5\\. Prioritize Your Loan Payments\n---------------------------------\nWhether you're borrowing money from a bank or a loved one, making your payments on time should be a priority. Again, your loan agreement should outline how much you'll be repaying each month and when. Treat this as a regular line item on your budget. You can even consider setting up automatic monthly bank transfers so that it's out of sight, out of mind (just make sure you have enough cash in the account to cover it). Alternatively, your friend or family member may prefer a check or to be paid with an app like Venmo or PayPal.\nIf you hit an unexpected financial hurdle along the way, be upfront with them as soon as possible, especially if they're relying on your monthly payment. Your willingness to find a solution and right the ship quickly may be enough to keep the relationship intact. END
 TITLE: What Is Lifestyle Creep and How Can You Prevent It? CONTENT: Lifestyle creep happens when increased income leads to increased discretionary spending. Lifestyle creep can take the form of an ever-escalating taste for the finer things or a growing slate of regular expenses that sap money from your savings account. Think higher and higher rent, hobbies that consume your cash, gourmet food, new and improved electronics, pets and kids, subscriptions and memberships, splurging on entertainment—you get the idea.\nThe problem with lifestyle creep is that it can edge out larger financial goals such as creating emergency savings, contributing to retirement funds or putting money away for a down payment on a home. Without you realizing it, your newfound lifestyle can take priority over your financial security. Even if you're earning a generous income, you might end up living paycheck to paycheck or incur unaffordable amounts of debt. This kind of spending is heavy: If you experience any disruption in income or have an unexpected expense, you will almost certainly have trouble paying your bills.\nA few common signs of lifestyle creep:\n*   **Living the dream**: Things you used to think of as aspirational or luxury spending have become necessities.\n*   **Here today, gone tomorrow**: Spending on things like streaming subscriptions, expensive haircuts or $12 espresso is done without a second thought. At the end of the month, you don't know where your money went.\n*   **A life of its own**: It's not only one-time expenses that sting, but the fact that one becomes more comfortable with increased day-to-day expenses. Your new income may have let you leave packed lunches behind, but your $22-a-day lunch habit at the restaurant close to your office costs you $154 every week. And that's just for lunch, the most in-between meal of the day.\n*   **Can't go back**: Once you become accustomed to your new lifestyle, the idea of going back to the way you lived before in order to save money seems regressive. END
 TITLE: What Is Lifestyle Creep and How Can You Prevent It? CONTENT: Fighting Against Lifestyle Creep\n--------------------------------\nLifestyle creep can feel like progress. And in fact, continuously improving your lifestyle isn't a bad thing, as long as you're also minding your financial health and working toward long-term goals. To keep discretionary spending in check, consider these strategies:\n**Create a monthly budget and stick to it.** As your income increases, it's important to recalibrate your budget. Consider the 50\/50 rule: With this guideline, at least half of any additional money you earn should go to saving, paying down debt or investing and the other half is up for grabs. That way, every boost to your income is also a leg up toward reaching your financial goals in addition to improving your lifestyle.\n**Set long-term goals and track your progress.** Would you like the security of having six months of expenses in the bank? Have you started saving for a new car? Do you contribute to a 401(k) at work or a Roth IRA on your own? Big goals like these help you in the long run and give you another kind of success to focus on. Remember, retirement savings targets are often linked to your income, so you'll want to contribute more toward those accounts as your earnings grow.\n**Keep a lid on revolving debt.** Runaway debt is bad for your overall financial health and it's also a sign that your lifestyle is getting away from you. When you live beyond your means and run up debt, you're not positioning yourself well to achieve long-term financial goals like creating a nest egg or paying off your home. Maintaining too much revolving debt can also hurt your credit, which in turn makes you less financially resilient and can make it harder to secure the best terms on new debt such as a mortgage or car loan.\n**Automate your savings and investments.** Instead of relying on pure discipline to stick to your goals, setting up automatic payments to your savings and investment accounts each month can help you prevent your spending from ballooning out of control.\n**Be ready for retirement and other fluctuations in income.** Excess discretionary spending is especially troublesome when your income drops—for example, if you lose your job, retire or decide to slow your work schedule to raise kids. Lightening your debt load and lifestyle expenses can help position you for a wider range of life options. END
 TITLE: What Is Lifestyle Creep and How Can You Prevent It? CONTENT: How to Reverse an Escalating Lifestyle\n--------------------------------------\nYou can also reverse the effects of lifestyle creep by taking stock of your finances and making decisions about what to keep and what to jettison. Some steps to get you started:\n*   **Audit your spending**. Where does your money go week to week and month by month? Are all your purchases good ones?\n*   **Reduce monthly outflow**. Make a list of your recurring expenses, subscriptions and memberships, and weed out the ones you don't need.\n*   **Declutter**. Gathering all of your once coveted, now unwanted, items in one place can drive home the message that unchecked spending does not help you live your best life or achieve the happiness you desire.\n*   **Sell or replace goods**. If it's possible, sell clothing or other unnecessary items online. Are you driving a car that's too costly or renting a place beyond your means? Start looking for another option.\n*   **Make active choices**. Really think about how you might use your money for your own good. Pay attention. END
 TITLE: What Is Lifestyle Creep and How Can You Prevent It? CONTENT: What COVID-19 Can Teach Us About Lifestyle Creep\n------------------------------------------------\nRecently, we all had an immersive lesson in beating back lifestyle creep. As COVID-19 raged, millions of people lost their jobs. We were forced to stay in our homes and out of restaurants, concert venues, shopping malls and airplanes. We saved more: According to the U.S. Bureau of Economic Analysis, American households had $2.29 trillion in savings in May of 2021, nearly a 66% increase from the $1.38 trillion in savings Americans had as of February 2020, before the pandemic began. Experian data also shows a reduction in average credit balances as well as record high credit scores during the pandemic. As our ability to spend indiscriminately waned, our ability to save money and build our credit improved.\nIt was a hard lesson that no one wants to go back and learn again. But if we can move forward with the knowledge that very little spending is indispensable, that money in the bank is as good as—well, money in the bank, and that we have flexibility and choice as we get back to normal, then maybe we can show some real progress. In the end, it's our lives, not our lifestyles, that have value. END
 TITLE: Will a New Credit Card Affect My Mortgage Application? CONTENT: How Applying for a Credit Card Affects Your Credit\n--------------------------------------------------\nUltimately, getting a new credit card account and managing it well is a prime opportunity to build good credit. But applying for and opening a new account can cause minor ups and downs with your credit score, which are important considerations if you're also getting ready to apply for a mortgage.\n*   **A new credit application can ding your credit score.** When you apply for credit, the card company reviews your credit score and report, resulting in what's called a hard inquiry. Hard inquiries can knock a few points off your score and will stay on your credit report for two years. The effect of hard inquiries typically diminishes after a few months.\n*   **New credit activity can lower your score.** Credit scoring company FICO looks at how many recent inquiries appear on your credit report as well as how recently you've opened new accounts. Applying for or opening a flurry of new accounts can come across as risky behavior, and this could affect your score. Recent credit activity accounts for 10% of your score.\n*   **A new account lowers your average age of accounts.** The length of your credit history and the average age of your accounts make up 15% of your credit score.\n*   **More available credit can improve your credit utilization.** Credit utilization is the amount of revolving credit you're using divided by your total available credit. Here's a quick example: Say you have $2,000 in revolving debt (typically credit card balances) and $8,000 in available credit. In this case, your credit utilization is 25%. If you add a new card with a $5,000 limit and a zero balance, your credit utilization drops to around 15%—good news, since amounts owed on your accounts make up 30% of your FICO® Score☉ . But beware: If you max out your new card to buy $5,000 worth of furniture, credit scoring models will consider the utilization on that single card (100%) and across all your cards (53%)—in both cases, that's high enough to damage your credit score and possibly raise a red flag with your lender. In general, it's best to keep your credit utilization under 30% at all times, and the lower, the better.\n*   **You may add to your credit mix.** If your new account adds diversity to your credit portfolio, your credit score may improve. Credit mix speaks to how many different types of credit you manage, such as revolving credit cards and installment loans, and it accounts for roughly 10% of your credit score.\n*   **Good payment history helps your score, eventually.** Payment history accounts for 35% of your FICO® Score, which makes it the most influential factor. But a new credit account doesn't have a payment history to report. For that reason, a new account may even lower your score temporarily. Making your monthly payments on time will raise your score eventually, but this can take a few billing cycles or longer. END
 TITLE: Will a New Credit Card Affect My Mortgage Application? CONTENT: A New Credit Card May Hurt Your Mortgage Application\n----------------------------------------------------\nOverall, opening a new credit card account and managing it wisely is good—not bad—for your credit. But getting a new card just before or during the mortgage application process isn't the best timing. Why? For one thing, a temporary drop is typical when you open a new account, and you can't accurately predict how your score will change. If it drops enough to move you from \"good\" to \"fair\" credit, for example, you may no longer qualify for your loan. A lower credit score may also cause your lender to bump up your interest rate. Even a small increase in the rate you pay can cost tens of thousands of dollars over the life of a mortgage.\nMaking a significant change to your credit profile also adds an element of instability to your application. A mortgage is a large loan with a long lifespan. Lenders are looking for evidence that you'll pay your loan predictably, month after month. A good credit score and clean credit report help show your reliability, along with a solid employment history, adequate down payment and ample savings. Any changes during the application process—a job change, a sudden move or a new card account, for example—can signal that your finances are in flux. These changes may also delay your approval as your lender verifies information.\nThe safest strategy is to avoid applying for new credit while you're going through the mortgage approval process and in the months leading up to your application. Put a temporary moratorium on shopping for new card offers. And, if you think you'll need to open new credit around the same time as your home loan application—for instance, to purchase a much-needed new car—look for ways to time your applications so that your other credit needs don't interfere with your mortgage approval. END
 TITLE: Will a New Credit Card Affect My Mortgage Application? CONTENT: How to Get Your Credit Ready for a Mortgage\n-------------------------------------------\nPlanning ahead in general can eliminate stress. Are you thinking of buying or refinancing a home in the next year? Start preparing your credit now:\n*   **Check your credit report and score.** Find out where your credit stands and address any issues you uncover.\n*   **Pay every bill on time.** As mentioned, payment history is the most important factor in your credit score.\n*   **Pay down your debt wherever possible.** Mortgage lenders will take a close look at your debt-to-income ratio (DTI), so pay down as much debt as possible before applying for a mortgage.\n*   **Avoid opening new accounts before and during your mortgage application.** This includes car loans, student loan refinancing and credit cards.\nWhen you pull your Experian credit report and score, you'll see a list of factors that may be affecting your score. These can provide areas of focus to optimize your score before you apply for a mortgage.\nA final item to be aware of: Mortgage lenders typically check multiple credit scores, not just one. And, though the VantageScore® and FICO scores you see most often when you check any of the three major credit reporting agencies are a good general indicator of your credit standing, mortgage lenders may use slightly different scoring models, including FICO 2 from Experian, FICO 5 from Equifax and FICO 4 from Transunion. END
 TITLE: Will a New Credit Card Affect My Mortgage Application? CONTENT: Wait for New Credit Until After You Close\n-----------------------------------------\nTracking your credit reports and scores in the months leading up to your mortgage application can help you build and maintain good credit and avoid surprises when you're ready to apply. In addition to free credit monitoring, Experian offers access to multiple FICO® Score versions from all three credit bureaus, including FICO® Scores used by mortgage lenders, when you sign up for an Experian CreditWorks℠ Premium membership.\nIt helps to know how lenders will view your credit before you apply for a mortgage. It's also helpful to maintain your credit score and report with as few changes as possible during the approval process. Once your mortgage closes, new credit is fair game. END
 TITLE: Can You Pay a Mortgage With a Credit Card? CONTENT: How to Pay Your Mortgage With a Credit Card\n-------------------------------------------\nThere are four primary ways you can try to use your credit card to pay your mortgage.\n*   **Use a third-party service.** Some services act as a middleman by accepting your credit card payment, then sending a check or ACH transfer on your behalf. While these are more commonly used for paying rent than mortgages, some companies (such as Plastiq) accept certain cards for mortgage payments. Plastiq charges a 2.85% transaction fee for each payment, and only accepts payment via Mastercard or Discover credit cards from select card issuers.\n*   **Buy a money order.** You also might be able to buy a money order with your credit card and deposit it at your bank or send it to your mortgage servicer. However, money orders often have a $1,000 limit, and there may be a fee for each one you buy. Many merchants also don't accept credit cards for money orders, and some card issuers might treat the transaction as a cash advance, which can be costly.\n*   **Transfer a balance to your bank account.** Some credit cards let you use a balance transfer to move money into your bank account. You could then make the payment from your account as you normally would. The card issuer typically charges a balance transfer fee (3% or 5% is common), and the balance can accrue interest based on your card's balance transfer annual percentage rate (APR).\n*   **Get a cash advance.** Another option could be to take out a cash advance with your credit card. You could then use the cash to buy a money order or cashier's check. Or, deposit it and pay by check or electronic transfer. There may be a cash advance fee, and the advance often starts accruing interest right away. Furthermore, your cash advance limit may be lower than your credit limit.\nAlthough all four options listed above present a potential way to use your credit card, that doesn't necessarily mean doing so is a good idea. END
 TITLE: Can You Pay a Mortgage With a Credit Card? CONTENT: There are two reasons people generally want to use a credit card to pay their mortgage: Either they want to earn credit card rewards, or they can't afford the mortgage payment.\nBut before you use a credit card, consider:\n*   **Fees**: Third-party services and retailers that sell money orders may charge you fees. Additionally, your credit card may have fees for balance transfers and cash advances—which sometimes apply to cash-like purchases like money orders. These fees may seem insignificant at first but can easily snowball if you wind up paying them every month.\n*   **Interest**: Your purchases and balance transfers may accrue interest if you can't pay off your balance in full each month. Cash advances may have a separate, higher interest that starts to accrue right away.\n*   **The card's rewards**: If you were planning on using your mortgage payments as an easy way to earn credit card rewards, you're likely out of luck. In many cases, the fees you pay will drastically outweigh what you can earn in rewards—if you'll earn rewards at all.\n*   **Promotional interest rate offers**: You may be able to temporarily avoid accruing interest on purchases or balance transfers if your card has a promotional 0% APR offer. Be sure to read the terms closely, though, and make sure you can pay off the balance by the end of the promotional period.\n*   **The effect on your credit score**: A high balance on your credit card could lead to a high credit utilization ratio that hurts your credit scores. You may be able to avoid this by paying off the balance before the end of your statement period. If you're going to carry the balance, its impact on your credit score could limit your borrowing options later.\nThe high fees and other downsides of making mortgage payments with a credit card mean it's a bad idea for most people. If you're trying to avoid missing a mortgage payment, using a credit card as a strategic stop-gap might be an option, but you'll want to exhaust your other options first. Otherwise, you could wind up with a lot of high-interest debt. END
 TITLE: Can You Pay a Mortgage With a Credit Card? CONTENT: Alternatives to Using a Credit Card for Your Mortgage\n-----------------------------------------------------\nIf you're struggling to afford your mortgage payment, you may be eligible for various relief and assistance programs. You could try to:\n*   **Contact your mortgage servicer before you miss a payment.** Share that you're struggling to afford your payments and whether you expect it to be a short- or long-term issue. The mortgage servicer might be able to temporarily offer a temporary repayment plan with a lower monthly payment or a mortgage modification if you experienced a significant hardship.\n*   **Look into mortgage forbearance.** The mortgage servicer may also discuss putting your mortgage into forbearance. Doing so could let you temporarily reduce or stop making your mortgage payments.\n*   **Get help from a housing counselor.** You can use the Consumer Financial Protection Bureau's housing counselor tool or call the Homeowners HOPE Hotline. A housing counselor may be able to suggest different options you can use to stay in your home.\nMortgage lenders often don't want to foreclose on a home and are willing to work with a borrower to avoid this outcome. There may be a cost to some of these programs or options, but they're likely much cheaper than the fees and interest you'll accrue if you start using your credit card to pay your mortgage every month. END
 TITLE: Can You Pay a Mortgage With a Credit Card? CONTENT: Monitor Your Credit Report and Score\n------------------------------------\nIt's also a good idea to continually monitor your credit while you're repaying your mortgage. If you have a good payment history and high credit score, you may be able to refinance your mortgage to lower your interest rate, decrease your monthly payment or get cash out. You can check your Experian credit report for free and sign up for free FICO® Score☉ monitoring. END
 TITLE: Does a Mortgage Hurt Your Credit? CONTENT: A New Mortgage May Temporarily Lower Your Credit Score\n------------------------------------------------------\nWhen a lender pulls your credit score and report as part of a loan application, the inquiry can cause a minor drop in your credit score (usually less than five points). This shouldn't be a concern, though, as the effect is small and temporary, and on its own shouldn't cause significant damage to your credit score or affect a lender's decision. In addition, credit scoring models recognize rate shopping for a loan as a positive financial move, and typically regard multiple inquiries in a limited time period as just one event.\nThat said, this is not the time to apply for credit you don't strictly need, such as new credit cards or a student loan refinance. Save those applications for later, after the mortgage loan has closed and the house is yours.\nIf you aren't submitting a formal loan application yet but want to get prequalified so you'll know how much house you can afford, your lender will likely base its prequalification on a \"soft\" inquiry. This type of inquiry does not affect your credit scores.\nOnce you've been approved for a mortgage and your loan closes, your credit score may dip again. Good news: Since you've already been approved for your home loan, this temporary drop may not matter much.\nWhy does your score drop when you get a new mortgage? Your mortgage is a big loan and it's brand new. Credit scoring models don't have evidence yet to show you'll be successful at making your payments on time. A new account also lowers the average age of your accounts, a factor that accounts for a small part of your credit score. This temporary drop in your credit score should begin to resolve after a few months of paying your loan on time, all other things being equal. END
 TITLE: Does a Mortgage Hurt Your Credit? CONTENT: How a Mortgage Can Benefit Your Credit Score\n--------------------------------------------\nThese early dips in your credit score are minor compared with the potential upside a mortgage can have for your credit. To understand this more clearly, consider the factors that go into calculating your FICO® Score☉ :\n*   **Payment history**: A typical mortgage provides the opportunity to make 30 years' worth of on-time, credit-building payments.\n*   **Credit mix**: By managing a mix of installment loans like mortgages and auto loans as well as revolving credit card accounts, you show your ability to handle different types of credit.\n*   **Length of credit history**: Although a new mortgage works against this metric, over the life of the loan, your mortgage becomes a long-term account that shows longevity.\nThe sheer size of a typical mortgage can also play in your favor. Make on-time payments over the life of the loan, and the positive influence your mortgage has on your credit will be long-lasting. END
 TITLE: Does a Mortgage Hurt Your Credit? CONTENT: There is, of course, the other side to the story. If you have trouble repaying your mortgage on time, your credit score will almost certainly suffer. Although it's always a good idea to make your mortgage payment on or before the due date, the real trouble for your credit begins about a month after you miss a payment. Most mortgage lenders extend a grace period of 15 days before they'll penalize you with a late fee. If a payment is 30 days or more past due, they will report it as late to the credit reporting agencies.\nEven one 30-day late payment can have a lasting effect on your credit. Payment history accounts for 35% of your credit score and is the biggest factor in its calculation. A late payment will appear on your credit report for seven years, though its effect diminishes over time. An isolated 30-day late payment is less damaging than multiple late payments or one that extends to 60 or 90 days past due.\nAn unpaid mortgage that goes into foreclosure creates its own set of problems. In a foreclosure, multiple missed payments cause your mortgage to go into default. As part of your loan agreement, your lender has the right to seize your property and sell it to recover their money. The missed payments that lead up to foreclosure—120 days or four successive missed payments is typical—will seriously damage your credit. The foreclosure itself also becomes a negative item on your credit report. Worst of all, you lose your home and any financial stake you have in it.\nClearly, the best course of action is to avoid late payments and foreclosure. If you think you may be unable to make a loan payment at any time, contact your lender to see if anything can be done to minimize the damage and help you get back on track. END
 TITLE: Does a Mortgage Hurt Your Credit? CONTENT: Optimizing Credit in the Future—and Now\n---------------------------------------\nGetting a mortgage is a positive opportunity to build your credit, accumulate wealth and live in your own home. Checking your credit score before you begin the application process can help you determine whether it might be a good idea to take time to improve your credit score before submitting your applications.\nIf your score isn't where you want it to be, check out Experian Boost™† . This free service lets you add on-time utility, phone and streaming service payments to your credit score calculation, which may help offset a minor dip in your credit score while you're waiting for the positive effects of paying your new mortgage to kick in. END
 TITLE: Financial Abuse: How to Identify and Stop It CONTENT: What Is Financial Abuse?\n------------------------\nNot all money problems are signs of economic abuse. Money disagreements or unequal sharing of responsibility for paying bills, for example, are common. In healthy relationships, issues like these may be resolved by learning more about managing credit, sticking to a budget or handling joint accounts.\nFinancial troubles can cross the line into abuse when control, deception and exploitation enter the picture. Secret spending, hidden accounts and identity theft are classic signs of financial abuse. According to National Network to End Domestic Violence (NNEDV), financial abuse can take many forms, among them:\n*   Withholding money or giving an \"allowance.\"\n*   Not allowing access to bank accounts.\n*   Forbidding you to work or sabotaging work opportunities by stalking or harassing.\n*   Running up large amounts of debt on joint accounts.\n*   Forcing you to write bad checks or file fraudulent tax returns.\n*   Refusing to work or contribute to family income.\n*   Hiding assets.\n*   Stealing your identity, property or inheritance.\n*   Forcing you to work in a family business without pay.\n*   Refusing to pay bills.\n*   Evading child support or manipulating a divorce process by hiding or not disclosing assets.\nFinancial abuse occurs across socioeconomic, educational, racial and ethnic groups and includes people of all genders. Often, it fits into a larger pattern of abuse. In a study cited by the Center for Financial Security, 99% of domestic violence survivors also experienced some form of financial abuse. Financial instability is also a common reason someone may stay in an abusive relationship or return to their abuser. END
 TITLE: Financial Abuse: How to Identify and Stop It CONTENT: How Financial Abuse Can Affect Your Credit and Finances\n-------------------------------------------------------\nFinancial abuse can ruin your credit and finances. If your partner siphons off or totally depletes your savings, runs up charges on your credit cards, takes out loans in your name, fails to make payments on debt, blocks your access to accounts or interferes with your ability to make money, you could be left penniless, in debt, out of work and with poor credit.\nSelf-assessment is key. Have you been prevented from opening or accessing accounts? Are you cut off from managing day-to-day finances? Do you suspect money is being funneled into a secret account? Financial abuse is different in every case and can sometimes be difficult to recognize. If you feel intimidated, threatened, deceived or bullied—or you feel you can't productively address your concerns with your partner—these are red flags, doubly so if financial issues are part of a larger pattern of verbal, sexual or physical abuse.\nIf you suspect financial abuse, accessing your credit report can be a helpful first step. You'll see your credit card balances and payment histories, and whether new credit inquiries have been made or new credit taken out in your name. Access your credit report for free at all three credit reporting agencies at AnnualCreditReport.com. Be mindful of your safety: Online activity on your home computer could be trackable by your spouse or partner. END
 TITLE: Financial Abuse: How to Identify and Stop It CONTENT: Ending the Abuse Cycle\n----------------------\nBreaking a cycle of abuse often means ending the relationship and working to establish financial independence. This can be a complicated and risky process. Help and safe harbor from supportive friends and family can be key to helping you break free. Objective advice from mental health professionals or legal counsel can also be invaluable.\n*   If you are in immediate danger at any time, call 911.\n*   Trained domestic violence advocates at NNEDV can help you evaluate your situation and devise a safe plan for ending abuse and\/or getting out of the relationship. Get more information by visiting the National Domestic Violence Hotline or calling (800) 799-SAFE.\n*   The Allstate Foundation recognizes the importance of financial literacy in combating abuse. The Moving Ahead Curriculum developed by NNEDV and the Allstate Foundation provides step-by-step information to help you understand, move through and rebuild after financial abuse, including important tips on staying safe. This interactive curriculum is available online.\n*   Womenslaw.org provides legal information related to domestic or sexual violence, regardless of your gender.\n*   Domesticshelters.org connects you with domestic violence shelters in communities throughout the country. END
 TITLE: Financial Abuse: How to Identify and Stop It CONTENT: The Path to Recovery\n--------------------\nRecovering from financial abuse is a long-term process. For couples who stay together, setting boundaries and rebuilding trust are critical steps forward. For those who have suffered substantial damage to their finances and credit, recovery may mean navigating separation and divorce while also working to establish financial stability and repairing credit.\nLearning how to respond to identity theft, rebuild credit, get out of debt and make a financial plan are all good places to start. You may also find the following tools helpful for keeping your accounts secure in the wake of financial abuse:\n*   **Set up fraud alerts and credit freezes** at all three credit reporting agencies. A fraud alert asks potential lenders to verify your identity before extending credit; a security freeze prevents new lenders from accessing your credit report unless you lift the freeze, making it more difficult for new credit accounts to be opened in your name without your knowledge.\n*   **Add two-factor authentication** to your online accounts, wherever possible. Two-factor authentication requires a user to input a password or passcode plus a one-time code, sent by email or text, to verify identity. This added security can help prevent other parties from cracking into your accounts, changing your passwords and blocking your access.\n*   **Sign up for transaction alerts**, so your bank notifies you whenever a transaction is made on your account(s). This is not only handy for keeping track of your money; it also alerts you to suspicious activity. END
 TITLE: What Is a Community Bank? CONTENT: What Makes Community Banks Different?\n-------------------------------------\nAt the end of 2019, the Federal Deposit Insurance Corporation (FDIC) counted 4,750 community banks in the U.S. Within those ranks, there's plenty of variation. Some community banks are small and genuinely quaint; others are sophisticated operations with award-winning technology. Umpqua Bank, based in Oregon, won a 2020 customer experience innovation award for its human digital banking strategy. But it's also a local favorite for its community partnership, which includes volunteerism, community grants, sharing expertise with local businesses and providing space for community events like \"stitch and bitch\" knitting circles.\nThough there's no universal definition of what qualifies a financial institution as a community bank, here's a quick comparison. Each of the four largest U.S. banks has trillions of dollars in assets, while one common guideline defines community banks as having no more than $10 billion in assets. In its 2020 study on community banking, the FDIC describes community banks as having these characteristics:\n*   Lending and deposit gathering within a limited market area\n*   Relationship lending, which relies on specialized knowledge gained through long-term business relationships\n*   Private ownership, prioritizing the long-term interest of local communities over the demands of capital markets. END
 TITLE: What Is a Community Bank? CONTENT: Comparing Community Banks and Big Banks\n---------------------------------------\nHow do you decide which is a better fit for you and your priorities? Here are a few ways of thinking about the differences between community banks and their more traditional counterparts.\nYou might prefer a big bank if these factors are important to you:\n*   **Nationwide network**: Branches and ATMs around the country.\n*   **Mobile and online experience**: Including things like digital financial assistants or automated loan applications.\n*   **Broad range of financial products**: Different credit card programs, elite investment services or international money exchange, for example.\n*   **Efficiency vs. personality**: You're comfortable being anonymous.\n*   **Ubiquity**: Travel or frequent moves make it important for you to bank at a financial institution where your location won't be a factor.\n*   **Size**: If you like a bank that's \"too big to fail,\" these are your banks.\nYou might prefer a community bank if you value:\n*   **More personalized service**: You actually visit the branch and prefer to know your bankers.\n*   **Community focus**: A bank that is based in and invests in your community.\n*   **Relationship banking**: While this is a marketing term used throughout the industry, at a community bank a strong relationship could help you secure a loan for your home or small business.\n*   **Less emphasis on technology**: Some community banks may lag a bit here, but many others are ahead of the game. Be prepared to shop for the technology you want.\n*   **Basic needs**: Checking, savings, loans and credit cards at favorable rates are all you really need.\n*   **A good fit**: At its best, community banking can provide all the services you need plus bankers who actually care about promoting your financial well-being or helping you grow a business.\nCommunity banks aren't the only alternatives if you're looking for a smaller-bank experience. Like community banks, not-for-profit credit unions often have favorable rates on savings, loans and credit cards. Many also participate in a national shared branch network and the CO-OP ATM Network with 30,000 surcharge-free ATMs nationwide.\nDigital banks are also on the rise. What online-only banks like Chime and Axos lack in human interaction they can make up for in digital tools and features like faster deposits as well as potentially higher interest rates on savings accounts.\nAs you shop for a bank, also think about the \"banking\" you do outside your bank. You may use outside lenders or credit cards. You may pay friends with Venmo, invest using Robinhood and maintain a 401(k) through your work. If so, which services do you really need from a bank? Your list may be short. END
 TITLE: What Is a Community Bank? CONTENT: Where to Find a Community Bank\n------------------------------\nFinding the right community bank can take some legwork because every community bank won't be the right fit for you. If you're looking for candidates, here are three starting points:\n*   **Check your neighborhood.** The place to find a community bank is—no surprise—in your community. Friendly local branches in your neighborhood or local shopping district are a good place to start.\n*   **Use a locator.** The Independent Community Bankers of America has a community bank locator that will find community banks in your area.\n*   **Ask a friend.** Relationship-focused community banks tend to have enthusiastic customers.\n*   **Read the news.** A community bank that sponsors charity events, volunteers to help the community or offers financial literacy workshops might be the kind of bank you're looking for.\nBefore you open an account, visit the bank's website to make sure they're FDIC insured and that they offer the products you need: free or low-cost checking, high-yield savings, home or small-business loans and solid mobile-banking tools, for example. Check out their blog or social media as well: You'll get a sense of their personality and how they relate to their customers. You may find a community you'd like to join—and get a bank in the process. END
 TITLE: What Happens to Your Credit When You Default on a Business Loan? CONTENT: Are Business Loans Reported to Credit Bureaus?\n----------------------------------------------\nBusiness loans appear on your business credit report and factor into your business credit score. The three primary business credit reporting agencies—Dun & Bradstreet, Experian and Equifax—receive information from lenders and credit card companies, public records, state filing offices, collection agencies and other sources. Business credit scoring models use this information to generate a business credit score that lenders and vendors may use to evaluate your business's creditworthiness.\nAlthough your business credit report and score are different from your personal credit report and score—with information maintained in separate databases—some similarities apply. For example, your payment history factors significantly into your business credit score, just as it does with your personal credit. If you've been falling behind on your business loan payments, those late payments are likely bringing your business credit score down. If your business loan is in default or has gone to collections—or falling behind on bills leads you to file bankruptcy—these events will also appear in your business credit report and affect your business credit score.\nWhether you have a loan in default or are just concerned about your business credit, you can benefit from checking your business credit report. You can check your business credit at any of the three major business credit bureaus for a fee. Learn more about what's in a business credit report and how it works from Experian Small Business. END
 TITLE: What Happens to Your Credit When You Default on a Business Loan? CONTENT: Does a Business Loan Affect Personal Credit?\n--------------------------------------------\nUnder certain circumstances, a business loan default can also affect your personal credit. Here are three factors that may determine whether and how your business loan may impact your personal credit:\n*   **How your business is structured:** If you are a sole proprietor, your personal credit will almost certainly be affected by a business loan default.\n*   **How your loan is structured:** Even if you aren't a sole proprietor, your personal credit may be implicated if you used it to apply for your business loan. Personal guarantees are common for startup loans to businesses that don't have much of a credit history and for Small Business Administration (SBA) loans. If you're not sure whether your personal credit was involved in guaranteeing your loan, check your loan documents.\n*   **How your default is resolved:** If your loan default eventually leads to business bankruptcy and your personal assets are at risk, you may consider personal bankruptcy as well. Filing personal bankruptcy will, of course, have a major impact on your personal credit. You may benefit from consulting with an experienced bankruptcy attorney if you find yourself in this predicament. END
 TITLE: What Happens to Your Credit When You Default on a Business Loan? CONTENT: Additional Consequences of Defaulting on a Business Loan\n--------------------------------------------------------\nDamage to your business credit from defaulting on a business loan can have additional consequences. Having poor business credit will affect your ability to get loans and credit in the future—including credit lines from vendors—and that may make it difficult to operate or recover.\nIf your business loan was secured with business or personal assets as collateral, these assets may be seized and sold by your lender when your loan goes into default. Losing critical business equipment or real estate could spell the end of your business. Personal assets such as your home or personal bank accounts may also be at risk, again, depending on your loan agreement.\nThe SBA offers guarantees of up to 85% on SBA loans, which means your lender may be partially compensated if they can't collect from you. However, this does not prevent your lender from pursuing you for the debt or reporting late payments, defaults or collections to credit reporting agencies. And if the SBA does step in, you are still not off the hook. They will continue to pursue the debt with you—and may resort to tax liens and wage garnishment to collect their money. END
 TITLE: What Happens to Your Credit When You Default on a Business Loan? CONTENT: Reach Out Early for Help\n------------------------\nFiguring out how to proceed when you're unable to pay a business loan isn't simple. If possible, reach out to your lender before your loan goes into default. Because collections and legal action are costly for lenders as well, many will work with you to avoid default, possibly by restructuring your loan or accepting interest-only payments for a period of time. You may want to consult with a nonprofit credit counseling service, a debt settlement attorney or a bankruptcy attorney to help you navigate forward with as little damage as possible to your business and personal credit—and to help you chart the best future course for yourself and your business. END
 TITLE: Does Unpaid Tuition Affect Your Credit Score? CONTENT: What Happens When You Have Unpaid Tuition?\n------------------------------------------\nEvery school has its own policies and timelines for dealing with unpaid tuition, but it's common for schools to place financial holds on student accounts that are past due. This could prevent you from registering for classes, receiving your diploma or accessing your transcripts. If you're currently attending school, prolonged delinquency can cause you to be dropped from classes or lose your campus housing. Studying in the U.S. under an F1 Visa? Your visa eligibility could be at risk if your registration lapses.\nAn unpaid tuition bill can also end up in collections. Your school may have its own collection department or it may sell unpaid tuition debt to a collection agency. If collections aren't resolved and the amount owed paid, your school may choose to take legal action. You may be responsible for any fees associated with collecting your debt. Whatever it takes, it's worth the effort to prevent your tuition bill from moving into collections—or, worse, court. Create a payoff plan and contact your school as soon as you anticipate financial difficulty. END
 TITLE: Does Unpaid Tuition Affect Your Credit Score? CONTENT: How to Start Paying Tuition—Immediately and Long Term\n-----------------------------------------------------\nIf you foresee a problem paying tuition, meet with the financial aid office as soon as possible to enlist their help. They should be able to explain any payment arrangements available to you and clarify important deadlines to help keep your account out of collections. They may also be able to point you toward emergency aid, late-deadline scholarships or campus jobs to help you get payments back on track.\nUnpaid tuition can be both a short- and long-term issue. You may be able to smooth over a momentary financial shortfall by switching to monthly payments, for example, and reducing the amount you need to come up with right away. But a missed tuition payment can also be a sign that your college financial plan needs a reset. If your parents lost their jobs during the pandemic, your financial aid money fell through, or you're finding your expenses are much higher than you anticipated, you may need to revisit the question of how you will afford college. Your long-term plan may require more financial aid, student loans or even a less expensive school.\nMeanwhile, how do you raise money to pay your tuition now? A few ideas to consider:\n*   **Get a job.** There are many ways to make money in college, but a part-time job may be the quickest path to extra income. You may even want to reduce your class schedule or take a semester off to save extra money.\n*   **Ask family or friends.** While not always easy to do, asking your parents or close relatives or friends for a gift or a loan could tide you over at least for the time being.\n*   **Seek out scholarships.** Scholarship opportunities abound at your school and beyond. They may not come in time to help you make a late payment, but applying now could help for the next school year.\n*   **Accept federal student loans.** If you haven't taken on any student loans yet, now may be the time. With low interest rates and special protections, federal student loans are typically your best option.\n*   **Consider a private student loan.** Federal student loans require you to complete a FAFSA application well in advance of the school year. If the FAFSA deadline is long past and your tuition is due now, looking into a student loan from a private lender might be worthwhile. You'll need good credit or a cosigner, but you don't have to wait for the next financial aid cycle to apply.\nHow to Deal With Unpaid Tuition Already in Collections\n------------------------------------------------------\nWhat if your student account has already gone to collections? Learn more about how to deal with debt collectors and what to do when your account goes into collections: Many of the same principles and protections apply whether your account is a mortgage, credit card or tuition account. The bottom line is straightforward: Pay off the account as soon as possible.\nHere's helpful information to know when your account is in collections:\n*   Once your debt is in collections, be prepared to deal with the collection agency and not your school.\n*   Though you should respond to collection calls, you don't have to agree to anything over the phone. Ask to receive key information—an explanation of your debt or a repayment plan, for instance—in writing, and schedule a follow-up call if necessary to discuss next steps.\n*   By law, collection agents may not threaten or abuse you, and if you ask them in writing to stop contacting you, they must comply.\nA collection account stays on your credit report for seven years from the date of the original delinquency and will lower your credit score for as long as it's there.\nWhen you're having issues with unpaid tuition or even if you find a solution and get back on track, consider setting up free credit monitoring to keep track of your credit report and score. This is a good practice at any time, but it can be especially helpful if you're worried about an unpaid bill. You'll be notified if there's any activity in your credit file—and can feel reassured if there's no activity to report. END
 TITLE: Does Unpaid Tuition Affect Your Credit Score? CONTENT: How to Deal With Unpaid Tuition Already in Collections\n------------------------------------------------------\nWhat if your student account has already gone to collections? Learn more about how to deal with debt collectors and what to do when your account goes into collections: Many of the same principles and protections apply whether your account is a mortgage, credit card or tuition account. The bottom line is straightforward: Pay off the account as soon as possible.\nHere's helpful information to know when your account is in collections:\n*   Once your debt is in collections, be prepared to deal with the collection agency and not your school.\n*   Though you should respond to collection calls, you don't have to agree to anything over the phone. Ask to receive key information—an explanation of your debt or a repayment plan, for instance—in writing, and schedule a follow-up call if necessary to discuss next steps.\n*   By law, collection agents may not threaten or abuse you, and if you ask them in writing to stop contacting you, they must comply.\nA collection account stays on your credit report for seven years from the date of the original delinquency and will lower your credit score for as long as it's there.\nWhen you're having issues with unpaid tuition or even if you find a solution and get back on track, consider setting up free credit monitoring to keep track of your credit report and score. This is a good practice at any time, but it can be especially helpful if you're worried about an unpaid bill. You'll be notified if there's any activity in your credit file—and can feel reassured if there's no activity to report. END
 TITLE: How Long After Paying Off a Credit Card Will My Credit Score Go Up? CONTENT: Should You Cancel a Credit Card After Paying It Off?\n----------------------------------------------------\nOnce your card account is paid, you might feel tempted to cancel the card to prevent yourself from accruing another high balance. Canceling your card may not be the best idea, though. An established credit account helps your credit score in a few ways, even if you don't use the card frequently.\nOne major reason not to cancel a credit card is that your card accounts contribute to your total available credit, which affects your credit utilization ratio. To calculate this ratio, divide your total credit card balances by your total available credit. Your credit utilization is one of the most important factors in your FICO® Score☉ , and a ratio of 30% or higher can affect your scores negatively. Keeping your paid-off account open is a way to help keep your overall credit utilization down.\nAnother reason is that a credit account you've had open for a while helps increase the average age of your accounts and the length of your credit history, which accounts for 15% of your FICO® Score.\nIs it ever a good idea to cancel a card? You might consider it if, for example, you're paying a high annual fee without making use of the card's rewards or benefits. You might also want to replace a card that has a high interest rate or too few rewards or benefits. Before you cancel, contact the card issuer and explain your concerns. They may be able to move you to a different card that doesn't have an annual fee and is better suited to your needs, or help you figure out how to lower the interest rate on your current card. END
 TITLE: How Long After Paying Off a Credit Card Will My Credit Score Go Up? CONTENT: How to Continue Using Your Credit Card Responsibly\n--------------------------------------------------\nGoing forward, the best way to keep the momentum going is to use your credit cards responsibly. That means keeping your spending and debt under control, whether you decide to use them regularly and pay off your balances every month, or keep your cards open but hidden away (some cardholders go as far as freezing their cards in a block of ice).\nA few tips to consider:\n*   **Use your credit card regularly.** Regularly using your credit card demonstrates your ability to manage debt well and ensures the account isn't closed due to lack of use. A monthly bill as small as a streaming service payment can keep your account open and reflect positively in your credit.\n*   **Always pay your bill on time.** As a safeguard, consider setting up your account to make automatic minimum payments right before your due date—just make sure you have enough in your bank account to cover the payments. Payment history accounts for more than a third (35%) of your FICO® Score.\n*   **Lock cards you don't plan to use.** Some card companies let you turn your cards \"off\" through their mobile app as an added security measure. This keeps the account open, but can protect you from credit card fraud that could drive up your balances.\n*   **Make a payoff strategy before you spend.** Using your credit cards may earn you rewards or other benefits like extended warranty protection, but these perks lose their luster if you have to pay interest on a balance you're struggling to pay off. Before you spend, establish a game plan for paying your purchase off over a reasonable period of time. END
 TITLE: How Long After Paying Off a Credit Card Will My Credit Score Go Up? CONTENT: Building and Maintaining Good Credit\n------------------------------------\nPaying off a credit card is a milestone to celebrate, as is the bump to your credit score that could result. You can more closely track the changes to your credit scores—and keep an eye on your score moving forward—by signing up for free credit monitoring with Experian. You'll have access to your Experian credit score and report and can set up alerts to let you know when changes occur to your credit file. Paying down debt, monitoring your credit and using your credit wisely will all help set you on a path toward building and maintaining good credit. END
 TITLE: What Do Landlords Look For in a Tenant? CONTENT: Good Credit\n-----------\nA landlord may check your credit to get a sense of how responsible you are with debt and payments. Among the information in your credit report landlords find useful:\n*   Overall debt amounts, including credit card balances, loans and minimum monthly payments\n*   Late bill payments\n*   Past-due accounts\n*   Defaults\n*   Collections\n*   Bankruptcies\nYour credit score also provides a quick indicator of how creditworthy you are, and a higher score may mean you're more likely to be approved for a unit. However, there isn't a magic threshold that separates a good score from a bad one here. The credit score you'll need to rent an apartment can vary quite a bit from city to city, neighborhood to neighborhood, and landlord to landlord. According to rental listing site RENTCafé, the average renter's credit score in 2020 was 638. In dense San Francisco it was 719, while it was 580 in the more suburban Arlington, Texas. Renters in luxury accommodations had higher scores on average than those living in modest units, according to the RENTCafé analysis.\nBefore you start submitting rental applications, check your credit report and score to get an advance read on where you stand. If you find that your scores aren't where you'd like them to be, you can take steps to improve your credit scores.\nIf there's negative information on your credit report, consider these steps to secure an apartment with less-than-perfect credit:\n*   Find a landlord who doesn't check credit. They're rare, but they do exist.\n*   Look for a landlord with credit requirements that are in line with your score and history.\n*   Add a cosigner with good credit to your lease or rental agreement.\n*   Offer more money upfront as a security deposit or advance rent. END
 TITLE: What Do Landlords Look For in a Tenant? CONTENT: Solid Rental History\n--------------------\nYour credit report can provide insight into how you manage your debt. There's information it doesn't show, however, such as evictions, bounced checks, broken leases and property damage. Money owed to previous landlords could appear on your credit report if it was sent to a debt collector.\nTo learn more about your history as a renter, a landlord or tenant screening service can also run a separate eviction report that will show any evictions you've been party to during the last seven years. They may also look at your rental history from an informal angle, taking into account how long you've been a renter or how long you've stayed at each address, for example. Reference letters from previous landlords could help provide reassurance if you feel it's necessary.\nRent payments won't automatically be added to your credit report, but they can be. Going forward, if your landlord agrees to report your payments to Experian RentBureau, your positive rent payment history will appear as an account on your credit report and contribute to your credit score. You can also take your own steps to have your rent payments reported to RentBureau, which could help with future applications. END
 TITLE: What Do Landlords Look For in a Tenant? CONTENT: Sufficient Income\n-----------------\nAlong with your credit and rental histories, your income helps determine how desirable a tenant you are. While there's no universal standard when it comes to how much income is enough, a higher income pretty much always trumps a lower one.\nCommon budgeting guidelines may help you figure out how much rent is reasonable for your level of income. As a simple starting point, calculate 30% of income before taxes. For example, if you earn $6,000 a month, your projected rent would be $1,800. Match that figure up with rental costs in your area to see whether this projection is realistic for the type of unit you're considering. If not, try adjusting your rent budget up just a bit or think about looking for a smaller or more modest place. Finding a roommate is another option.\nTenant screening may include an employment check or another type of income screening to verify your income. Also be prepared to prove your income by providing pay stubs, W-2 tax forms or bank statements. END
 TITLE: What Do Landlords Look For in a Tenant? CONTENT: Positive Criminal Background Check\n----------------------------------\nLandlords often run criminal background checks as a routine tenant screening measure. A criminal background check may surface:\n*   Past felony or misdemeanor convictions\n*   Active warrants\n*   Pending criminal cases\n*   Sex offender registry listings\nDepending on what information is revealed, a criminal background check can affect whether a landlord views you as a risk—either to property or to the safety and well-being of the other tenants. If they decide to take adverse action, such as declining your application or requiring a larger security deposit as the result of a criminal background check, they must notify you of their decision and their reasons why. You have the right to see the report, including the name of the consumer reporting agency that provided it, and to dispute erroneous information with that agency. If you think this is an area of concern, learn more about Fair Housing Act guidelines and your rights under the Fair Credit Reporting Act. END
 TITLE: Credit Mistakes to Avoid When You Are Young CONTENT: 1\\. Waiting to Build and Establish Credit\n-----------------------------------------\nNo one comes into the world with good credit. In fact, until you begin using credit, you won't have a credit report or score. For most, establishing credit means starting small with a low line of credit that may require a security deposit. And if you think about it, that's not a bad place for a young person to start. You get a card to use for emergencies or to cover expenses without too much risk of running up a giant balance.\nMore importantly, you get the opportunity to learn how credit works—how to manage an account, make timely payments, mind your credit limit and avoid overspending. Play your cards right, and you'll graduate with solid credit to help launch you into independent adulthood.\nHere are two ways to establish credit when you're young:\n*   **Get added as an authorized user.** One place to start is to be added to a parent's or loved one's credit card account as an authorized user. Apple now allows parents to add children ages 13 and older to their Apple Card Family accounts as \"participants\" with optional spending limits; family members 18 and older may be added as co-owners on the account. The Apple Card isn't the only card that allows parents to designate their children as authorized users: Have your parents check with their card companies for options. As an authorized user, you will benefit from the primary cardholder's payment history, get your own credit card and be allowed to make purchases on the card (as long as the primary cardholder agrees).\n*   **Open your own credit card.** A few **student credit cards** allow you to open an account with no security deposit. Alternatively, **secured cards** are common for those with little or no credit history. With a secured card, you provide a deposit upfront that is typically equal to your credit line: A $200 deposit typically secures a $200 credit limit, for example. If you were to default on your credit card balance, the card issuer would use this deposit to pay off your debt. After a period of successful card management, your card issuer may refund your deposit or raise your credit limit.\nCredit cards are a great way to build credit—but they can also start you off on the wrong foot if you're not careful. That brings us to the next credit mistake you'll wait to avoid. END
 TITLE: How to Check Your Rental History Report CONTENT: Checking your rental history report gives you the opportunity to review what landlords are likely to see when they check your file. It could also help you spot any inaccuracies that may appear and have them corrected. There are multiple companies that provide this type of report, so you may want to find out which reporting agency your prospective landlord uses if you think it's important to see the exact report they're accessing.\nYou can request a copy of your Experian RentBureau report by completing a request form and mailing it in, or by calling 877-704-4519. The other major companies that provide tenant history reports are LexisNexis, CoreLogic and Tenant Data. END
 TITLE: How to Check Your Rental History Report CONTENT: How to Get Your Rental Payments on Your Credit Reports\n------------------------------------------------------\nNot all landlords share payment data with Experian RentBureau. But having your on-time rent payments reported to RentBureau can serve as a real benefit in several ways. A positive rent payment history on a rental history or tenant screening report can help future landlords get a picture of how likely you are to pay your rent on time—and how you've avoided skipped payments or collections. This could make it easier to be approved for a rental unit, and may have other benefits such as a lower security deposit requirement. Timely rent payments can also become part of your regular Experian credit report, adding to payment history and contributing positively to your credit score.\nHow can you get your current rent payments reported to RentBureau? There are two main ways to approach it.\n*   **Contact your landlord or property manager.** Ask if they would be willing to report your rental payment history to RentBureau. Your lease will appear in the \"accounts\" section of your Experian credit report, showing the date the lease started, your monthly payment amount and your payment history for the past 25 months.\n*   **Enroll in a rent-paying service.** If your landlord won't report your payment data to Experian RentBureau, you may want to look into a fee-based rent payment service that reports to credit bureaus at your request. Companies like Cozy and RentTrack collect rent money from you and pay it to your landlord. They'll report your payment history to Experian if you opt in.\nWhat Else Do Landlords Check When You Apply to Rent?\n----------------------------------------------------\nDifferent landlords handle tenant applications differently. Some do relatively little screening; others may download multiple reports themselves or work with a consumer reporting agency that offers tenant screenings.\nHere are a few things a landlord is likely to check as part of the application process:\n### Your Income and Employment\nThere are multiple ways for landlords to check your income and employment. They may contact your employer directly or request proof of income from you in the form of pay stubs, tax forms or bank account statements. If it's clear based on income information that you can't afford the unit you're applying for, you can be denied regardless of other factors.  \n### Your Credit\nLandlords may vary on the credit scores they want to see from a rental applicant, but many do check credit scores. They may also check your credit report for past bankruptcies, past-due payments and other negative information. Your credit report also reveals information about your monthly debt load, which can be important if it impacts your ability to meet your rent every month.\n### Your Criminal Background\nPast felonies and misdemeanors, pending cases, outstanding warrants—these may all affect your ability to be approved for a rental. If you know your criminal background may contain concerning information, tell your prospective landlord about it. It might also help to explain why you believe your past mistakes won't prevent you from being a good tenant now.\nCan I Rent an Apartment With Bad Credit?\n----------------------------------------\nYou don't need perfect credit to rent an apartment. Although a credit score of 700 or above is helpful—especially if you're looking to rent in a competitive city like San Francisco or Boston, or you have your eye on a high-end building—the average credit score for renters in 2020 was 638, according to listing site RENTCafé.\nIf your credit score seems to be an issue when you submit rental applications, consider these tips for getting an apartment with less-than-perfect credit:\n*   **Set your sights lower.** Choose a more modest location or a building that isn't as posh. Credit requirements are likely to be more forgiving.\n*   **Consider a less expensive unit.** A lower rent will take up less of your available income and your credit score won't be as much of a factor to landlords.\n*   **Highlight your strengths.** If you have a good income—say, three to four times rent or more—be sure to emphasize it.\n*   **Look for a landlord who doesn't check credit.** Alternatively, you may find a landlord who's open to a credit score in your range.\n*   **Find a cosigner with good credit.** Be mindful, however, that your cosigner may be on the hook for any rent you fail to pay.\n*   **Offer more money upfront.** Paying a larger security deposit or multiple months of rent upfront might convince a landlord to approve your application.\n*   **Pause your search and work on your credit.** Good credit habits plus a little time may bring your score into a better range.\nCheck Now to Avoid Surprises\n----------------------------\nScreening potential tenants can be a stress point for landlords, but it can also be a stressful process for applicants. Getting this much scrutiny can leave you worrying what will come to light. Checking your rental history report, along with other relevant information like your credit report and score or criminal background, can at least take away some of the surprise. With your report in hand, you can see what landlords are likely to find out and prepare yourself—and your application—accordingly. END
 TITLE: How to Check Your Rental History Report CONTENT: What Else Do Landlords Check When You Apply to Rent?\n----------------------------------------------------\nDifferent landlords handle tenant applications differently. Some do relatively little screening; others may download multiple reports themselves or work with a consumer reporting agency that offers tenant screenings.\nHere are a few things a landlord is likely to check as part of the application process:\n### Your Income and Employment\nThere are multiple ways for landlords to check your income and employment. They may contact your employer directly or request proof of income from you in the form of pay stubs, tax forms or bank account statements. If it's clear based on income information that you can't afford the unit you're applying for, you can be denied regardless of other factors. END
 TITLE: How to Check Your Rental History Report CONTENT: Can I Rent an Apartment With Bad Credit?\n----------------------------------------\nYou don't need perfect credit to rent an apartment. Although a credit score of 700 or above is helpful—especially if you're looking to rent in a competitive city like San Francisco or Boston, or you have your eye on a high-end building—the average credit score for renters in 2020 was 638, according to listing site RENTCafé.\nIf your credit score seems to be an issue when you submit rental applications, consider these tips for getting an apartment with less-than-perfect credit:\n*   **Set your sights lower.** Choose a more modest location or a building that isn't as posh. Credit requirements are likely to be more forgiving.\n*   **Consider a less expensive unit.** A lower rent will take up less of your available income and your credit score won't be as much of a factor to landlords.\n*   **Highlight your strengths.** If you have a good income—say, three to four times rent or more—be sure to emphasize it.\n*   **Look for a landlord who doesn't check credit.** Alternatively, you may find a landlord who's open to a credit score in your range.\n*   **Find a cosigner with good credit.** Be mindful, however, that your cosigner may be on the hook for any rent you fail to pay.\n*   **Offer more money upfront.** Paying a larger security deposit or multiple months of rent upfront might convince a landlord to approve your application.\n*   **Pause your search and work on your credit.** Good credit habits plus a little time may bring your score into a better range. END
 TITLE: How to Check Your Rental History Report CONTENT: Check Now to Avoid Surprises\n----------------------------\nScreening potential tenants can be a stress point for landlords, but it can also be a stressful process for applicants. Getting this much scrutiny can leave you worrying what will come to light. Checking your rental history report, along with other relevant information like your credit report and score or criminal background, can at least take away some of the surprise. With your report in hand, you can see what landlords are likely to find out and prepare yourself—and your application—accordingly. END
 TITLE: How Does Financial Aid Work for Divorced Parents? CONTENT: Should You Fill Out the FAFSA?\n------------------------------\nUnless your family has the means to pay for college outright, completing the Free Application for Federal Student Aid, or FAFSA, is the place to start. When you apply for financial aid through just about any college, the FAFSA will be a required part of your application. The FAFSA calculates your eligibility for federal financial aid, but it also may be used to consider state financial aid and institutional aid from your college of choice, including merit-based scholarships.\nUnless both parents still live in the same home, only one parent needs to complete the FAFSA. If your parents are divorced and live in separate households, fill out the FAFSA using information for your custodial parent only. If you split time between your parents' households, your custodial parent for these purposes is:\n*   **The parent you lived with more during the past 12 months.** Even if your parents have 50-50 custody, most years have an odd number of days, so you can use whichever parent you spent more days with as your custodial parent.\n*   **The parent who provided the majority of your support.** If you truly spent equal time with both parents, consider the parent who provided the majority of your support to be your custodial parent.\nInformation from your FAFSA will be used to create a Student Aid Report, which will be supplied to the schools you've listed on your application. The school you commit to will use the FAFSA to determine federal grants, work study and loans to offer you, and may also use it to calculate state aid or school-specific funding. END
 TITLE: How Does Financial Aid Work for Divorced Parents? CONTENT: The CSS Profile: Adding Complexity\n----------------------------------\nIn addition to the FAFSA, nearly 250 colleges—many of them private colleges—also require the College Scholarship Service (CSS) Profile as part of their financial aid application process. The CSS Profile is more detailed than the FAFSA. Whereas the FAFSA looks primarily at your parent's income, the CSS Profile also considers business assets, home equity, student and sibling assets—the list is long. Your school may also require both parents to submit CSS Profiles. Parents will fill out their applications separately and privately, but they will both be considered as potential funding sources.\nProviding a CSS Profile for both your parents can make a difference in the way a school sees your financial aid eligibility. Especially if you have a custodial parent who would likely qualify for financial aid and a non-custodial parent who likely won't, your chances of receiving aid might be hindered at a college that requires the CSS Profile versus one that uses only the FAFSA.\nThis shouldn't necessarily discourage you from applying to a college that requires the CSS Profile. Colleges can use multiple sources of funding when they put financial aid packages together, and they may still come through with the aid you need. But it is helpful to understand this dynamic as you apply for—and ultimately choose—a college. The CSS Profile can create a different snapshot of your family's ability to pay than the FAFSA does, and that could make FAFSA-only schools a more affordable option for you. END
 TITLE: How Does Financial Aid Work for Divorced Parents? CONTENT: Getting Help With the Financial Aid Process\n-------------------------------------------\nBoth the U.S. Department of Education (at StudentAid.gov) and the College Board offer searchable online help for filling out FAFSA and CSS Profile forms. These sites should provide current answers to questions like how to include information on stepparents and stepsiblings or how to report child or spousal support.\nFor more nuanced questions—and for help maximizing the financial aid opportunities at your school of choice—it may be useful to contact the school's financial aid office and find out what resources are available to you. They may offer FAFSA workshops to help you fill out forms. They can meet with you to help you understand your financial aid award letter and may provide additional ideas for you if your funding falls short of expectations.\nThe financial aid office is also the place to go if you have special concerns. What if your parent refuses to fill out the FAFSA, or you've lost contact with your noncustodial parent and can't get them to fill out a CSS Profile? They may be able to help you puzzle out FAFSA's Dependency Status requirements or review your CSS Profile Waiver Request for the Noncustodial Parent—and in some cases they may be able to make accommodations for you.\nNeed even more help navigating the application process or just figuring out how funding can work? Online sites like Form Your Future, Saving for College or College Covered may be helpful. END
 TITLE: How Does Financial Aid Work for Divorced Parents? CONTENT: What if Financial Aid Isn't Enough?\n-----------------------------------\nThe cost of attending college can be astronomical, even with financial assistance. If the financial aid award you've received from your college simply won't allow you to make ends meet, you may want to consider next steps:\n*   **Meet with your school's financial aid office (again).** Plead your case. If you're a prime candidate, they may be willing to help you find additional sources of funding—especially if you indicate that another school has offered you more help.\n*   **Look elsewhere.** Colleges can vary widely in the amount of aid they offer, even when they're using the same financial aid documents to make these decisions.\n*   **Consider work opportunities.** Federally-sponsored work study isn't your only option. There's a wide range of money-making opportunities for college students.\n*   **Tap your family members.** If you have grandparents or other relatives who are willing and able to contribute, now may be the time to gratefully accept. Paying them back or paying it forward with younger family members is always an option after graduation.\n*   **Apply for scholarships.** Check with the financial aid office and your high school's college counselor for ideas and read up on where to find scholarships. The Department of Labor also offers a free scholarship search tool.\n*   **Look into private student loans.** In addition to the federal subsidized and unsubsidized student loans that may be part of your federal financial aid package, you can consider private student loans. These loans typically have higher interest rates and fewer protections, and you need to qualify for the loan, possibly with help from your parents. You can explore your private loan options using Experian CreditMatch™. END
 TITLE: How Does Financial Aid Work for Divorced Parents? CONTENT: Invest the Time\n---------------\nApplying for financial aid with divorced parents may involve a bit of legwork, but it's navigable for most families. Be ready to leverage the financial aid office at your college—or multiple colleges—for help in filling out forms, understanding your aid package and finding as many resources as possible to fund your education. Whatever happens, don't be discouraged. Completing financial aid applications can open the door to the funding that makes college possible for you. That's a time investment that can pay off handsomely. END
 TITLE: What Is a Freddie Mac Home Possible Loan? CONTENT: Freddie Mac is a nickname for the Federal Home Loan Mortgage Corporation. In addition to buying mortgages from lenders like banks and credit unions and selling the debt on the secondary mortgage market, Freddie Mac and its sister agency Fannie Mae help set standard requirements for conventional mortgages. For homebuyers and borrowers who might have a tough time meeting those requirements, Freddie Mac and Fannie Mae also promote special programs to encourage homeownership for folks like first-time homebuyers and borrowers with low to moderate income.\nHome Possible is one of these programs. Requirements for the Home Possible loan are designed to help homeowners who might not otherwise qualify for a mortgage. Here are a few highlights :\n*   Down payments start at 3%.\n*   Down payment money can come from family, employer assistance programs, secondary financing or \"sweat equity.\"\n*   Family members who won't live at the home can be included as co-borrowers for single-unit properties.\n*   Mortgage insurance requirements are reduced and insurance on the loan can be canceled after the loan balance drops below 80% of the home's appraised value.\n*   Credit fees are capped and are lower than standard fees for loans with an 80% loan-to-value ratio or higher.\n*   Borrowers may be able to secure a loan even if they don't have a credit score, although alternative requirements may apply. END
 TITLE: What Is a Freddie Mac Home Possible Loan? CONTENT: Who Should Consider a Home Possible Loan?\n-----------------------------------------\nThe best way to know if a Home Possible loan is right for you is to work with a qualified loan officer who can assess your situation and match your needs against the program's requirements. Home Possible offers some generous provisions for would-be homebuyers, but requirements can vary depending on factors like whether you're purchasing a single-family home or condominium; the size of your down payment versus any amount you've been gifted; or your existing levels of income or debt.\nAlthough a Home Possible loan can be a viable mortgage option for many, it's especially appealing if you find yourself in one or more of the following circumstances:\n*   **Your income does not exceed 100% of the average median income (AMI) in your community.** Since you may not know the AMI in your neighborhood, use the Freddie Mac Home Possible tool to check your income eligibility.\n*   **Your family can help with down payment money or by acting as a co-borrower.** Gift money may change down payment requirements, however, so get the details before you apply.\n*   **You are open to taking a homeownership class.** Homeownership education is required for at least one borrower if all borrowers on the loan are first-time homebuyers. Your lender may also provide early delinquency counseling if you have trouble meeting your payment schedule.\n*   **You fit the credit parameters.** The minimum credit score for a Home Possible loan is 660; it's 680 for a no-cash-out refinance. If you or one of the borrowers on your loan do not have a credit score, however, a loan officer may be able to qualify you using alternative underwriting guidelines. END
 TITLE: What Is a Freddie Mac Home Possible Loan? CONTENT: Where Can You Get a Home Possible Loan?\n---------------------------------------\nFreddie Mac regularly works with community banks and credit unions, so these local financial institutions in your area are a good place to start looking for a lender.\nWhile you're shopping for a lender that handles Home Possible loans, you may want to look for one that also has a loan officer you enjoy working with. A loan officer who is knowledgeable about this program (or willing to take the time to learn) can discuss options and requirements in detail with you and help walk you through the application and approval process. Because Home Possible requirements can be complex—and may require special or even manual underwriting—a loan officer's expertise can really come in handy. END
 TITLE: What Is a Freddie Mac Home Possible Loan? CONTENT: Are You Prepared for the Mortgage Process?\n------------------------------------------\nBuying a home is a complicated process. So is applying for a mortgage. If you're getting ready to submit your mortgage application, pull together some basic financial information. Your prior year tax returns and a recent pay stub can help you confirm your monthly income. Firm up arrangements for down payment money and put it in a safe place like your savings account until you're ready to open escrow.\nEven if you're early in the home buying process, it's important to check your own credit. Although Home Possible loans have a workaround for applicants who don't have credit scores, having a credit score of 660 or higher will simplify your application process. You can download your credit report and score from all three credit reporting agencies for free at AnnualCreditReport.com, or get your Experian credit report and score for free anytime. By acting early, you'll know whether your credit score might qualify you for this loan and can work to improve your credit if necessary. END
 TITLE: What Is a Freddie Mac Home Possible Loan? CONTENT: An Alternative for \"Alternative\" Buyers\n---------------------------------------\nFinancing a home is a major accomplishment. It requires a record of financial responsibility, significant down payment money and confidence in your ability to live up to your mortgage payments. A Freddie Mac Home Possible loan may be a good fit for homebuyers who don't fit run-of-the-mill mortgage options. If you can use a little help qualifying for a mortgage, this might be an alternative to explore. END
 TITLE: Where Should You Save Your Down Payment Money? CONTENT: How Much Do You Need to Save for a Down Payment?\n------------------------------------------------\nWhile you may think of 20% as the standard down payment, the National Association of Realtors reports that first-time home buyers who get a mortgage typically finance 93% of their home purchase, which roughly means a 7% down payment. A 20% down payment may offer benefits—including the ability to forgo mortgage insurance—but it's not a requirement. Conventional mortgages can be had with as little as 3% down. Some government-backed loans, such as those offered through the Federal Housing Administration and the Department of Veterans Affairs, offer financing with low or no down payment.\nYou don't have to wait until you're ready to buy a home to explore how much house you can afford. Understanding how your income, credit, monthly expenses and down payment all work together can help you determine how much you'll need to save. Two dynamics to keep in mind:\n1.  A larger down payment means a smaller mortgage. The more you pay upfront, the less you'll have to finance. That means less income to qualify for a loan and lower monthly payments.\n2.  A smaller down payment can mean buying a home sooner. If you handle a larger mortgage and bigger monthly payment, saving less will save you time. On a $350,000 home, the difference between a 3% down payment and a 20% down payment is $59,500, so it's plain to see why a smaller down payment can trim years off your home purchasing timeline. END
 TITLE: Where Should You Save Your Down Payment Money? CONTENT: Best Places to Put Your Down Payment Savings\n--------------------------------------------\nWhile you're building up your savings, a dedicated savings account makes it easier to track your progress—and avoid using the money to cover your living expenses. Though interest rates are notably low as of early 2021, one of the safest places to park your cash is at a bank or credit union, where funds are insured up to $250,000 per account by the Federal Deposit Insurance Corporation or National Credit Union Administration and won't fluctuate with the market.\nHere are a few options to consider:\n*   A **high-yield savings account** works like a regular savings account, but with a higher interest rate. Online banks are often a good place to look for these accounts. In addition to shopping for rates, make sure the account you're considering doesn't have monthly fees attached.\n*   **Money market accounts** also let you earn while saving and may come with a debit card to use for limited transactions. Money market interest rates are competitive, but be mindful of minimum balance requirements.\n*   **Certificates of deposit (CDs)** **or share certificates** may offer slightly higher rates, but timing can be an issue. CDs require you to keep your money in your account for a set period of time—say, three months or five years—with penalties for early withdrawals. If these restrictions work for you, CDs are a fine place to stash your money. END
 TITLE: Where Should You Save Your Down Payment Money? CONTENT: Trading Risk for Reward With Investments\n----------------------------------------\nEven the best high-yield accounts offer meager gains. That can make the idea of investing seem attractive: What if you could make real gains and earn dividends on your money?\nThe problem with investing is risk. Savings accounts may not earn you a fortune, but they are safe, insured and surprise-free. With investments, the gains can be higher but the losses can be devastating. One hedge against this kind of risk is time. If you expect to save your down payment over 10 years, for example, fluctuations in the stock market may be less concerning. If past market trends are any indication, your money is likely to grow over that period of time. But if you're targeting a three- to five-year homebuying goal, be cautious.\n*   **Consider investing a small portion of your savings to start.** You'll put less money at risk.\n*   **Check out lower-risk investments.** These methods, such as money market funds or Series I savings bonds, can grow your savings with little risk.\n*   **Learn everything you can about investing.** A financial advisor or even a robo-advisor may help. END
 TITLE: Where Should You Save Your Down Payment Money? CONTENT: Save More for Your Down Payment\n-------------------------------\nInterest and earnings are great, but the fastest way to grow your down payment is by contributing more money. Here are a few ideas for maximizing your savings:\n*   **Budget, budget, budget.** Avoid overspending and be systematic about saving. Fine-tune your budget periodically to find additional ways to save.\n*   **Use automatic savings or a savings app.** By \"rounding up\" your transactions and squirreling the change into savings or otherwise gamifying the process, your bank's mobile app or a dedicated app like Qapital or Digit can help you tuck away a few extra dollars painlessly.\n*   **Look for ways to generate additional income**, then funnel your earnings into savings. This may mean getting another job or looking for ways to generate passive income.\n*   **Throw in your tax refund**, work bonuses and other windfalls. It all adds up. END
 TITLE: Where Should You Save Your Down Payment Money? CONTENT: Get Your Credit Ready for a Mortgage\n------------------------------------\nHaving good credit is almost as good as money in the bank when you're shopping for a mortgage. Lending requirements are often strict, and the best interest rates and features generally go to consumers with the highest credit scores. If you're aiming for a lower down payment, your good credit is also a signal to lenders that you're a lower-risk borrower.\nHow do you get your credit ready for a mortgage? Start by checking your credit. Knowing your credit scores and understanding what's in your credit report can help you to know what types of loans you qualify for. It also gives you an opportunity to take action to improve your credit if necessary. Better still, free credit monitoring from Experian helps you keep track of your credit score and report continuously. You can also set alerts that let you know when your credit score or report have been updated.\nTo keep your credit in optimal shape, keep these good credit habits in mind:\n*   Pay all your bills on time.\n*   Pay down debt as much as possible.\n*   Don't apply for loans or credit for at least several months leading up to your mortgage application. END
 TITLE: What’s Not Included in Your Credit Report? CONTENT: Financial Information That's Not Related to Debt\n------------------------------------------------\nWhile your credit report features plenty of financial information, it only includes financial information that's related to debt. Loan and credit card accounts will show up, but savings or checking account balances, investments or records of purchase transactions will not. Did you buy a car? Your purchase won't appear on your credit report, but any loan you used to finance it will. END
 TITLE: What’s Not Included in Your Credit Report? CONTENT: Income and Employment Information\n---------------------------------\nCurrent and past employers may appear in your credit report as part of your personal identifying information. However, your credit report won't show any information related to your income. Income can play a role in the credit application process: Lenders often ask about your income to help them determine whether you have the financial means to repay a debt. But they generally get this information directly from you (usually in the form of a pay stub or W2 form), not as part of your credit report. Also, since income is not part of your credit report, it is never a factor in calculating your credit scores. END
 TITLE: What’s Not Included in Your Credit Report? CONTENT: Public Records (Except Bankruptcy)\n----------------------------------\nPreviously, credit reports might contain public record information on civil judgments, tax liens, parking tickets and even library fines. But that information is no longer included in your credit file. Today, bankruptcy is the only information from the public record that's included on a credit report from the three national credit reporting companies: Experian, TransUnion and Equifax. END
 TITLE: What’s Not Included in Your Credit Report? CONTENT: Medical Information\n-------------------\nBy law, credit bureaus including Experian cannot disclose medical information relating to physical, mental or behavioral health. And while Experian does not collect or display medical information as part of your credit history, you may see the name of a medical provider listed as the original creditor on a collection account (such as \"Cancer Center\"). Although you can see the name of the original creditor that the collection debt was purchased from, it will display to your lenders and others viewing your credit report simply as \"medical payment data.\" END
 TITLE: What’s Not Included in Your Credit Report? CONTENT: Expired and Extraneous Information\n----------------------------------\nAt some point, even relevant financial information becomes old news. Following are a few examples of when items expire and should automatically drop off your credit report:\n*   Chapter 7 bankruptcy: 10 years\n*   Chapter 13 bankruptcy: 7 years\n*   Collection accounts: 7 years\n*   Late or missed payments: 7 years\n*   Closed credit accounts in good standing: 10 years\nYour credit report also excludes personal information that is irrelevant to your credit. Examples include:\n*   Marital status\n*   Disabilities\n*   Race or ethnicity\n*   Religious beliefs or affiliations\n*   Political affiliations END
 TITLE: What’s Not Included in Your Credit Report? CONTENT: Ultimately, there's much more excluded from your credit report than included. The four basic elements of your credit report are as follows:\n*   **Personal identifying information**: This includes your name and aliases (other names you've used), date of birth, Social Security number, current and past home addresses, phone numbers and possibly current and past employers.\n*   **Credit and loan accounts**: This includes mortgages, auto loans, personal loans, student loans, credit cards and lines of credit.\n*   **Public records**: Chapter 7 bankruptcies within the past 10 years; Chapter 13 bankruptcies within the past seven years.\n*   **Inquiries**: Any companies that have asked to view your credit report. END
 TITLE: When Should You Change Auto Insurance Providers? CONTENT: You can shop for auto insurance anytime, even in the middle of your policy term. Although an upcoming renewal is a good occasion to review your coverage and shop around, you can change policies whenever you want. More to the point, you can always seek out additional information at your leisure: There is never a downside to looking for the best auto insurance option, whenever inspiration may strike.\nThat said, if any of the following scenarios apply to you, now is an excellent time to start investigating new auto insurance options:\n*   Your policy renewal is soon.\n*   You're making a change such as adding a new driver, buying a new car, or upgrading or downgrading your coverage.\n*   You need to save money.\n*   Your creditworthiness has improved (credit can affect insurance rates in most states).\n*   Your current insurance provider is raising your premium.\n*   You've experienced poor customer service.\n*   You want to start bundling your auto, home and\/or life insurance.\n*   Your rates have increased because of an accident or speeding ticket.\n*   You want a special type of coverage or related service. END
 TITLE: When Should You Change Auto Insurance Providers? CONTENT: Tailoring Your Coverage to Save Money\n-------------------------------------\nThe first thing to do when you're comparing auto insurance alternatives is to look at your current policy. If you're in the market to save money, reviewing your coverages for savings opportunities is a good place to start. You might even kick things off by contacting your current insurance company to ask about modifying your coverage or applying discounts to bring your premium down.\nAdditionally, consider these three ideas for fine-tuning your policy to reduce your auto insurance costs:\n**Downgrade your coverage.** If you own your car outright, nixing comprehensive and collision coverage can bring down your premium drastically. This coverage kicks in to help you pay for repairs or replace your vehicle if you're in an accident or another covered event (vandalism, for instance). Review your policy for \"extras\" like roadside assistance or car rental coverage. Proceed with caution, though: Downgrading your coverage is only a good idea if your remaining coverage and savings are such that you won't be left high and dry if something happens to your vehicle.\n**Check your credit.** In most states, insurance companies use what's called a credit-based insurance score to help determine premiums. Check your credit report and score to see where you stand. If your credit is good, it may be a bargaining chip when you talk to prospective insurance companies. If not, taking steps to improve it can help bring down your premiums.\n**Look for discounts..** Auto insurance companies offer discounts for a variety of things: being a good driver, having multiple policies (such as auto, home and life), belonging to affiliate groups, having good grades—the list is usually long. Take a close look at each company's list of available discounts, note the ones that apply to you and make sure your insurance provider is including them in your premium calculation. END
 TITLE: When Should You Change Auto Insurance Providers? CONTENT: Finding Alternatives and Comparing Companies\n--------------------------------------------\nOnce you have a clear idea of what you want in a policy, you can start doing some shopping. The quickest way to get a range of offers is to use an insurance comparison site like The Zebra. By inputting some basic information, you'll see what the marketplace has to offer—and get a ballpark estimate of what coverage would cost from various insurers. Seeing what's out there is an important step if you want to save money on auto insurance.\nAnd there are, of course, plenty of other ways to choose a new insurer. Do friends or family have an insurance provider they'd recommend? Have you checked online reviews? You might check which companies rank well in competitive analysis, such as the J.D. Power Auto Insurance Satisfaction Study. Or it may be more important that your insurer covers a wide range of vehicles and offers different types of insurance. If you're interested in a particular type of coverage, like pay-per-mile insurance, look for a company that offers it.\nHow would a new insurance company stack up against your current provider? Check J.D. Power's customer satisfaction ratings for insurers in your region. Also, look at insurance ratings on sites like A.M. Best or Standard & Poor's. They can help you evaluate the financial stability of any companies you're considering. END
 TITLE: When Should You Change Auto Insurance Providers? CONTENT: Switching Auto Insurance Carriers When It's Right for You\n---------------------------------------------------------\nYou've reviewed your policy, gotten quotes and narrowed your options down to a few potential alternative insurers. It's time to plan your next move. Should you choose a new insurance carrier or stick with your current one? Answers to the following questions may help you decide.\n*   **What do you give up if you leave your current insurer?** Are there any penalties for switching? Will you lose accident forgiveness, which often kicks in after a few years with the same provider? Is there a recent accident or moving violation that might cause your rates to go up at renewal time, but renewal is still several months away? If so, you may want to wait until it's time to renew, since any new policy you shop for now will take your accident or ticket into account when pricing is set.\n*   **Do you like doing business with them?** If you've had a great experience with your insurance company, that might be worth a few extra dollars. If you've had a negative experience, there's no reason not to switch if you find a better deal elsewhere.\n*   **Do you need something your insurer can't offer?** Whether it's vintage car insurance, an insanely low price or an easy-to-use app, your needs simply may not intersect with what your insurance carrier has to offer. If that's the case, it's time to move on.\nIf you make a change, be sure to avoid any gap in coverage. It's better to overlap policies by a few days than to risk going without insurance, even for a short time. Operating a car without insurance is illegal in most states. It's also tempting fate. END
 TITLE: When Should You Change Auto Insurance Providers? CONTENT: Make the Move That's Right for You\n----------------------------------\nShopping for auto insurance and comparing policies can take a little work. And, honestly, it's hard to work up a lot of passion for a product you hope never to think about or use, which is certainly the case with auto insurance. But knowing you have the best available option may help you sleep better at night, and that in itself might be the best perk of choosing the right insurance. END
 TITLE: What Is the Earned Income Tax Credit? CONTENT: How Do Earned Income Tax Credits Work?\n--------------------------------------\nIf you qualify for the EITC, you can apply the credit directly toward your tax bill. For example, if you owe the U.S. government $2,300 in taxes for 2020 and you qualify for an EITC of $3,584, the U.S. government owes you $1,284. Because the EITC is a refundable tax credit, you can receive this money as a tax refund.\nIncome eligibility for the EITC is based on your adjusted gross income and your earned income. Adjusted gross income is all the money you made in a year minus specific deductions and credits. Earned income includes:\n*   Wages, salaries and tips\n*   Pay received for gig work or contracting\n*   Union strike benefits\n*   Nontaxable combat pay\n*   Certain disability benefits received before you reach minimum retirement age\n*   Net earnings from self-employment\nOther types of income are not considered earned. These include:\n*   Interest and dividends\n*   Retirement income\n*   Social security\n*   Unemployment benefits\n*   Alimony\n*   Child support\n*   Pay received for work while in prison END
 TITLE: What Is the Earned Income Tax Credit? CONTENT: What Are the EITC Income Limits?\n--------------------------------\nIncome limits for EITC eligibility vary depending on your filing status and the number of qualifying children you claim. The chart below shows the 2020 EITC adjusted gross income limits for taxes filed in 2021.\nSource: IRS\nAdditionally, if you have more than $3,650 in unearned income from investments—including stock dividends, rental properties or inheritance—in 2020, you do not qualify for the EITC. Also note that if your 2019 earned income helps you qualify when your 2020 earned income does not, you can use your 2019 earned income to calculate your EITC this year.\nOne important note: If you want to receive the EITC, you must file a tax return—you will not get it otherwise. This is true even if you don't owe any taxes or aren't otherwise required to file a return. END
 TITLE: What Is the Earned Income Tax Credit? CONTENT: What Is the Maximum EITC Amount I Can Claim?\n--------------------------------------------\nAgain, the size of your tax credit will depend on the size of your family. Here is the maximum EITC you can receive for the 2020 tax year:\n*   $6,660 with three or more qualifying children\n*   $5,920 with two qualifying children\n*   $3,584 with one qualifying children\n*   $538 with no qualifying children END
 TITLE: What Is the Earned Income Tax Credit? CONTENT: The IRS reports that roughly 20% of eligible taxpayers don't claim the EITC. But if you qualify, it's worth pursuing. Whether it merely reduces your tax bill or secures you a refund, the EITC represents hundreds or thousands of dollars in available relief.\nAre you confused about whether or not you're eligible? Many online tax programs include EITC calculations to help you puzzle this out. The IRS also offers an online EITC Assistant and live volunteer help through its Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) sites. END
 TITLE: What Is the Earned Income Tax Credit? CONTENT: Are There Other Tax Credits Available?\n--------------------------------------\nMany other tax credits are available to both individuals and families. In particular, taxpayers who qualify for the EITC may want to consider the child tax credit (CTC) and the additional child tax credit (ACTC). Both of these credits target families with similar income and qualifying characteristics. In 2020, the ACTC is refundable, meaning that if you qualify and your credits exceed your tax bill, you can receive the difference as a refund.\nAlso, be aware of new tax changes for the 2021 tax year. The American Rescue Plan Act, passed in March of this year, may make it easier for single taxpayers to qualify for the EITC—and may offer them more relief. Look for additional changes to EITC rules, along with enhancements to the child tax credit and more for 2021.\nClaiming the EITC may require a bit of effort, but much of the work is math you're already doing to file your taxes. Receiving this tax credit may help you and your family weather a difficult financial year, and that's welcome news after the many challenges of 2020. END
 TITLE: How to Avoid Overspending Each Month CONTENT: Take Inventory of Your Spending and Create a Budget\n---------------------------------------------------\nYou can't really control your spending until you know where your money is going. Start off by tracking your expenses for a month. Gather up your recent debit and credit card statements, along with any receipts you have for cash transactions. Using a paper and pen, spreadsheet or money-tracking app, divide your expenses into categories—groceries, housing, utilities, dining out, clothing, savings, car and any other grouping that makes sense to you. Total up each column to see how much you spent.\nIf you've already created a budget, compare it to your monthly expenses to see where you're spending more than expected. If you don't have a budget yet, use your tracked expenses to sketch one out. Here are four questions that might help:\n*   What was your actual net income for the month?\n*   How much did you spend in total—cash, debit and credit transactions?\n*   Did your expenses exceed your income? By how much?\n*   Are there categories you can readily cut back on?\nIn some cases, however, overspending isn't the issue. You may have lost your job or had your wages reduced, or you've had emergency expenses pop up that decimated your budget. When your financial concerns go beyond simply spending too much, it's important to consider other options. For instance, financial assistance services are out there that can help connect you with things like government benefits, rent relief, legal aid and food assistance. You may also want to talk to your lenders about deferring payments. END
 TITLE: How to Avoid Overspending Each Month CONTENT: Reduce Credit Card Spending\n---------------------------\nIdeally, your monthly income and expenses should balance without deploying your credit cards. Why? Large amounts of credit card debt can be difficult to pay off, and interest charges will add to ever-growing monthly credit card payments. Making matters worse, it can actually hurt your credit score to max out your credit cards or use up a large percentage of your available credit.\nIf impulse credit card purchases are what's affecting your finances, you might stop carrying your cards with you or storing your card information in your web browser. By adding this small barrier, you can buy yourself some time to decide the unnecessary (or unaffordable) expense isn't the best idea.\nDo you switch to credit cards when you're concerned that your checking account balance is low? Try making a habit of checking your account balance every morning. You'll have a clearer picture of how much you have left to spend at all times—and maybe remind yourself to spend less and save more if your balance is low. END
 TITLE: How to Avoid Overspending Each Month CONTENT: Reduce Spending on Food and Entertainment\n-----------------------------------------\nYou have to eat. But the amount you spend on food can vary widely, depending on what you eat and whether you dine out or eat at home. You can save money on groceries by keeping an eye out for weekly deals and coupons—and by sharpening your kitchen skills. Planning out a weekly menu, preparing multiple meals in advance, stocking your pantry and freezer with basics, and even cultivating a list of easy, low-cost recipes you love can help you live by a modest food budget.\nWhen you do dine out—or get takeout—being mindful of meal costs can save you money. Look for deals from local eateries. Split a dish with your companion. Go for lunch instead of dinner. Consider sticking to water instead of ordering expensive drinks. Or, if that last tip sounds dull, skip the meal and head to happy hour for low-cost drinks and appetizers. END
 TITLE: How to Avoid Overspending Each Month CONTENT: Reduce Monthly Bills\n--------------------\nRecurring bills like rent or mortgage payments, utilities or phone plans probably make up a large portion of your monthly outflow, so they're a good place to economize. Here are a few opportunities to explore:\n*   **Utilities**: Cutting energy consumption is always a worthy goal. Use appliances less often, turn lights off and set the thermostat to a slightly less comfortable setting. Also consider switching to low-energy lightbulbs and appliances: They may save you money on utilities, though they'll also cost you upfront.\n*   **Monthly phone or internet charges**: Can you reduce your service level without suffering? Is a comparable plan available for less money?\n*   **Insurance**: Shop your home or auto policy to see if you can find a better rate. You may be eligible for a multi-policy discount if you have more than one policy with the same carrier.\n*   **Credit cards**: Bring your monthly payments down by paying off debt and resisting the urge to charge. Also explore whether debt consolidation might lower your monthly bills.\nIf your budget feels out of whack no matter how much you recalculate, take a closer look at your housing expense. Rent or mortgage payments can take up so much of your budget that there's barely any money left to live. Though moving is a big decision, you may want to consider finding more affordable housing or refinancing the home you own if your housing expenses are weighing you down. END
 TITLE: How to Avoid Overspending Each Month CONTENT: Review Memberships and Subscriptions\n------------------------------------\nSubscriptions, memberships and apps are easy to sign up for and even easier to forget about. Over the course of just a few years, you might have accumulated a few subscriptions that have since been forgotten or underused. Look through your phone, debit and credit card bills for recurring subscriptions and cancel any you don't need or use. Common suspects: gym memberships, diet apps, automatic magazine subscription renewals, and overlapping streaming service or cloud storage solutions. Also look for opportunities to share subscriptions with family or friends. END
 TITLE: How to Avoid Overspending Each Month CONTENT: Track Your Progress\n-------------------\nOver time, careful money management can help you minimize credit card debt, grow your savings, live within your means and reduce your financial stress—all valuable components of financial health. You'll have an easier time meeting these goals—and celebrating them—when you track your finances consistently. Three areas to watch as you go:\n*   **Track expenses and stick to your budget.** Use a money app to make it easier.\n*   **Manage credit card debt** and check your credit often to confirm your progress.\n*   **Build your savings** and enjoy the security of knowing you have emergency funds. END
 TITLE: How to Avoid Overspending Each Month CONTENT: Make Your Finances Sustainable\n------------------------------\nFinally, be prepared to be flexible. Job changes, broken plumbing, major life events—these can all trigger unexpected spending. The goal of gaining control over your expenses isn't to eliminate life's financial surprises; that simply isn't possible. Instead, creating a structure and a plan helps make your finances more sustainable in good times and bad—including having an emergency fund at the ready. Figure out how to track your expenses, create a budget and keep your spending in check. Master your outflow and your financial goals will be easier to reach. Monitor your credit throughout the process can help you make sure you're setting yourself up for a great financial future. END
 TITLE: Secured vs. Unsecured Loans: What You Need to Know CONTENT: What Is a Secured Loan?\n-----------------------\nTo understand how a secured loan works, think of a typical auto loan. In exchange for the money you need to purchase a car, the lender uses collateral—in this case your new car—as a form of security. If you fail to make your loan payments, the lender can repossess your car, sell it and use the proceeds to help pay off your debt.\nMortgages and home equity loans use your home as collateral. Secured credit cards and personal loans require a cash deposit. Title loans let you use collateral—often the equity in your car—to borrow money. What all of these loans have in common is the lender's ability to take possession of valuable property you've pledged if you don't pay your loan as agreed.\nThe upside for you, the borrower, is access to credit. Without collateral, you might not be able to borrow hundreds of thousands of dollars to buy a home. Because secured loans are considered less risky, interest rates are often lower than they would be without collateral. In the case of secured credit cards and loans, making a cash deposit upfront might allow you the opportunity to build credit when unsecured credit is not an option. END
 TITLE: Secured vs. Unsecured Loans: What You Need to Know CONTENT: What Happens if You Default on a Secured Loan?\n----------------------------------------------\nIf you make your payments on time, your collateral remains yours. But if you stop making payments and default on your secured loan, the lender has the right—per your agreement—to take possession of your collateral.\nWhenever you take out a secured loan or line of credit, review your agreement carefully. Being a few weeks—or even a few days—late on a mortgage payment may result in a late fee, but it generally won't trigger a foreclosure. What you want to know is how soon a foreclosure could happen. Learn the same for any auto loan or any other secured loan you may have.\nDefaulting on a secured loan carries the same credit consequences as defaulting on an unsecured loan: It can negatively affect your credit history and credit score for up to seven years. However, with a secured loan, the bad news doesn't end there. You may also lose your home or car. You may forfeit any cash deposit you've put up as collateral. And if the proceeds from the sale of your home, car or other collateral don't cover your entire debt, you may be on the hook for the remaining balance. END
 TITLE: Secured vs. Unsecured Loans: What You Need to Know CONTENT: What Is an Unsecured Loan?\n--------------------------\nUnsecured loans don't involve any collateral. Common examples include credit cards, personal loans and student loans. Here, the only assurance a lender has that you will repay the debt is your creditworthiness and your word. For that reason, unsecured loans are considered a higher risk for lenders.\nYou'll generally need a strong credit history and a higher score to qualify for an unsecured loan. Unsecured loans typically come with higher interest rates as well: Think of the difference between the average mortgage rate and what you might pay annually on a credit card. But with an unsecured loan, you aren't risking any collateral—and that may counterbalance some of the additional risk you shoulder when you take on high-interest debt that will be more difficult to pay off. END
 TITLE: Secured vs. Unsecured Loans: What You Need to Know CONTENT: What Happens if You Default on an Unsecured Loan?\n-------------------------------------------------\nFailing to repay any debt will have a negative effect on your credit. Although you don't have to worry about losing your collateral with an unsecured loan, the cascading effects of falling behind in your payments can do real damage to your credit—and your finances.\nLate payments made 30 days or more past the due date will lower your credit score and remain on your credit report for seven years. If a lender puts your account into collections or takes legal action against you, this information also becomes part of your credit history. Collections and civil judgments remain on your credit report for seven years from the date the account first went delinquent or from the date a ruling was made against you. Serious delinquencies are a red flag to future lenders, who will think twice before extending credit to you. END
 TITLE: Secured vs. Unsecured Loans: What You Need to Know CONTENT: Which Type of Loan Is Right for You?\n------------------------------------\nAs a rule, secured loans will allow you to borrow more money at lower rates, but they put your property at risk if you fail to pay. Unsecured loans don't put your property at risk, but they can be more difficult to get and you'll generally pay more interest.\nSometimes the choice between a secured and an unsecured loan is not really yours to make. Mortgages and car loans are always secured, for example. If you don't yet have the credit history and score to get approved for an unsecured credit card, starting with a secured credit card can help you build credit.\nBut what if you're planning a minor bathroom remodel or another small project? Choosing in this case can be a bit more complicated. Should you use a home equity line of credit (HELOC) to pay for it or finance it using an unsecured personal loan? The best way to decide is to do the math: Compare interest rates, fees and repayment requirements. Keep in mind that while the HELOC is riskier, it also gives you the opportunity to borrow only what you need, unlike a personal loan where you take out a specific amount and have to pay back that amount regardless of whether you needed the whole thing for your remodel. That said, if savings are nominal, or you don't want to put up your house as collateral, a personal loan may be best. END
 TITLE: Secured vs. Unsecured Loans: What You Need to Know CONTENT: How Do Secured and Unsecured Loans Affect Your Credit?\n------------------------------------------------------\nSecured and unsecured loans impact your credit in much the same way. When you apply for the loan, the lender will check your credit score and report. Once you have the credit card or loan, they'll report your payment history, credit card limit and balance (and any negative information, such as collections, defaults, foreclosures or legal judgments), to one or more of the consumer credit companies: Experian, TransUnion and Equifax.\nPaying your loan or credit card on time can help you build credit. And using secured or unsecured personal loans to consolidate credit card debt can improve your credit score by reducing your credit utilization. Curious about your results? You can use free credit monitoring to track your credit score and report and see precisely how you're doing—a good idea well before you complete your loan application as well.\nBoth secured and unsecured loans can play positive roles in your financial life. Together, they're the keys to homeownership, car purchases, responsible credit card use, financing your education and sometimes simply managing your money effectively. Borrow judiciously and pay your loans back in a timely manner; your credit will fare just fine. END
 TITLE: How Can You Reduce Your Debt-to-Income Ratio? CONTENT: What Is Debt-to-Income (DTI) Ratio?\n-----------------------------------\nYour DTI ratio shows how much debt you pay each month compared to your monthly income. Lenders use DTI to determine how much additional debt you can afford when you are applying for a loan. Together with your credit score and report, DTI helps to paint a picture of your overall financial health and your ability to repay a loan.\nDTI can come into play when you're applying for almost any type of new credit: mortgages, home equity loans, auto and personal loans, and even new credit cards. A high DTI may signal to a lender that your debt load is unmanageable—or could become so with the addition of new credit. That makes you a greater credit risk and may hamstring your ability to get a new loan or credit approved. END
 TITLE: How Can You Reduce Your Debt-to-Income Ratio? CONTENT: How Do You Calculate DTI?\n-------------------------\nIf you're about to apply for a new loan, calculating your DTI can help you understand how a lender will view your application. It's not difficult to make this calculation, but you will need to gather some information.\nThere are two types of DTI lenders might consider when you're applying for a loan:\n*   **Front-end DTI** includes your regular monthly housing expenses: mortgage or rent, home or renters insurance, property taxes and homeowners association fees. It does not include utilities, phone bills or similar expenses.\n*   **Back-end DTI** includes all of the monthly housing expenses listed above as well as any additional monthly debt payments: credit card minimum payments, student loans, personal loans and auto loans.\nTo calculate your DTI, first determine what your gross monthly income is. That's what you earn monthly before taxes and other payroll deductions, plus any tips, bonuses, business income, pensions, social security, child support or alimony.\nDivide your total monthly housing expenses by your gross monthly income to get your front-end DTI. Add your monthly housing expenses and your monthly debt payments, then divide this figure by your gross monthly income to get your back-end DTI.\nLet's say your gross monthly income is $7,000 with a monthly housing expense of $2,250 and additional monthly debt of $600.\n**Your front-end DTI**:  \n$2,250 \/ $7,000 = 32%\n**Your back-end DTI**:  \n($2,250 + $600) \/ $7,000 = $2,850  \n$2,850 \/ $7,000 = 41% END
 TITLE: How Can You Reduce Your Debt-to-Income Ratio? CONTENT: What Is Considered a Good DTI?\n------------------------------\nLenders often set their own requirements on DTI, so there is no absolute standard for a good or bad ratio. From a lender's perspective, the lower your DTI, the better. Like good credit, a low DTI ratio helps you secure the best interest rates and terms on a loan. That said, mortgage lenders generally require borrowers to have a back-end DTI of 43% or less to qualify for a mortgage; many lenders prefer a DTI of 36% or less.\nIf you've been told your DTI is too high to qualify for a particular loan—and the tips below don't help you reduce your ratio—consider shopping around. You may find a lender with unconventional loans or different DTI requirements who is willing to work with you, especially if you have good credit. Alternatively, you may need to be flexible on interest rates and fees in order to find a loan that works. If your DTI is 50% or higher, your options may be limited. END
 TITLE: How Can You Reduce Your Debt-to-Income Ratio? CONTENT: You can improve your DTI by either reducing your monthly debt payments or increasing your income. Here are a few questions to help get you in the mindset:\n*   **Can you pay off any of your debts?** Are you close to paying off an auto loan, for example? Do you have the cash to pay off one or more of your credit cards? If you can dispose of any debt, you can reduce your monthly debt expenses and quickly lower your DTI.\n*   **Are you accounting for all of your income?** Include all the income you receive when filling out your loan application. Do you make money from a second job or side business? Are you collecting child support or alimony? Do you have any passive income or pensions?\n*   **Can you negotiate a raise, work overtime or land a higher-paying job?** If a raise or promotion is possible in the near future, it might be worth waiting on a loan application.\n*   **Is it possible to reconfigure your debt?** You might be able to lower your monthly credit card payments with a debt consolidation loan.\nAlso consider this: If DTI is preventing you from getting a loan, ask yourself whether this is a good time to take on additional debt. Using more than 43% of your income to service your debt doesn't leave much for food, clothing, taxes or savings—to say nothing of health care, entertainment, travel or other expenses. If you can't reduce your DTI by legitimately raising income or lowering debt, make sure the benefits of any new debt you're contemplating are really worth it.  \nDoes DTI Affect Your Credit?\n----------------------------\nDTI does not affect your credit report or score. That's because income information does not appear on your credit report, so credit reporting agencies can't calculate DTI. DTI also doesn't reflect your credit status: You can have an excellent credit score and a clean credit report and still have a high debt-to-income ratio. In fact, many people do.\nThere is an indirect relationship between DTI and credit utilization. Credit utilization is the percentage of available credit you're using by carrying credit card balances. Higher credit utilization generally lowers your credit score; it's an indicator that you have a lot of debt relative to your debt capacity. If you pay off credit cards to lower your credit utilization and raise your credit score, you will also reduce your monthly debt payments and improve your DTI.  \nPutting Your Best Application Forward\n-------------------------------------\nIf you're planning to apply for credit in the near future, it pays to understand your DTI and do what you can to optimize it. It's also a great time to review your free credit score and report, so when you're ready to present your information to lenders, your profile is one they can happily approve. END
 TITLE: How Can You Reduce Your Debt-to-Income Ratio? CONTENT: Does DTI Affect Your Credit?\n----------------------------\nDTI does not affect your credit report or score. That's because income information does not appear on your credit report, so credit reporting agencies can't calculate DTI. DTI also doesn't reflect your credit status: You can have an excellent credit score and a clean credit report and still have a high debt-to-income ratio. In fact, many people do.\nThere is an indirect relationship between DTI and credit utilization. Credit utilization is the percentage of available credit you're using by carrying credit card balances. Higher credit utilization generally lowers your credit score; it's an indicator that you have a lot of debt relative to your debt capacity. If you pay off credit cards to lower your credit utilization and raise your credit score, you will also reduce your monthly debt payments and improve your DTI. END
 TITLE: How Can You Reduce Your Debt-to-Income Ratio? CONTENT: Putting Your Best Application Forward\n-------------------------------------\nIf you're planning to apply for credit in the near future, it pays to understand your DTI and do what you can to optimize it. It's also a great time to review your free credit score and report, so when you're ready to present your information to lenders, your profile is one they can happily approve. END
 TITLE: What Is a Medical Credit Card? CONTENT: How Do Medical Credit Cards Work?\n---------------------------------\nMedical credit cards differ from traditional credit cards in a few significant ways. For starters, only participating health care providers accept them. Medical credit cards also can't be used for every procedure. Before you consider applying for a medical credit card, make sure the card will work for your provider and the procedure you need.\nMedical credit cards aren't all the same. Offers will vary by company and by your credit score and history. CareCredit, Wells Fargo Health Advantage and AccessOne MedCard are three common options, and you're likely to encounter them while you're in your provider's office. The options you find may include the following:\n*   **Introductory 0% interest financing**: It's important to pay your balance off on time and in full to avoid high interest charges (more on this later). These accounts typically convert to a relatively high interest rate once the introductory period ends. If a card offers deferred interest, you'll only avoid paying interest if you pay off your balance in full by time interest kicks in.\n*   **Longer-term financing**: This comes with a reduced interest rate and regular monthly installments.\n*   **A mid-range interest rate on revolving credit**: This works like a regular credit card, but for selected expenses only.\nPros and Cons of Medical Credit Cards\n-------------------------------------\nAre medical credit cards a good deal? Here's a quick breakdown of the pros and cons:\n**The Pros**\n*   Quick access to available credit if your current credit options won't cover your medical bills.\n*   Zero-interest financing, if you can pay off your balance within the introductory period.\n*   Medical debt is isolated to a specific account, making it easier for you to track your medical expenses and pay off your bills in a targeted manner.\n**The Cons**\n*   It might be difficult to pay off your balance by the time a deferred-interest period ends. When this happens, you may be charged interest retroactively for the deferral period. Late payment penalties can also be high—and a late payment may cause your introductory period to end early.\n*   You may be worse off with a medical credit card than a general-purpose credit card. If you're eligible, you can find traditional credit cards with perks including:\n    *   An introductory 0% rate that doesn't charge retroactive interest if you have a remaining balance when the period ends.\n    *   A lower overall interest rate.\n    *   Rewards or cash back.\n    *   Greater versatility.\n*   You may be tempted to apply for and accept this financing without reading the fine print because it's recommended by your provider. There's nothing inherently wrong with medical credit cards but, as with any credit, you should weigh all the facts and make a careful decision.\nHow Medical Credit Cards Affect Your Credit\n-------------------------------------------\nBefore you apply for a medical credit card and put your balance on it, take a moment to understand how medical debt affects your credit. Medical debt doesn't appear on your credit report like other types of debt do. That is, unless, you become significantly past due on your medical debt payment and your account is transferred to a debt collector. Once you put medical expenses on a medical credit card, however, it's likely to become regular credit card debt, at least from the perspective of your credit report.\nAlso, different cards impact your credit differently. Some card programs say they accept all patients, regardless of credit, and never report to credit bureaus. Others operate more like regular credit cards: They require a credit application and credit check. Once approved, your credit line becomes part of your available revolving credit and any charges you make on your card count toward your credit utilization ratio. On-time payments, as well as late payments and defaults are reported, just as they would be on any other credit card accounts.\nIn every case, it's important to understand the following: What does the credit application process require? How will your credit score and report affect your offer? How will information about your account be reported to credit bureaus?  \nAlternative Ways to Pay for Medical Debt\n----------------------------------------\nFinally, ask yourself whether a medical credit card is the best way to pay off your medical debt. Here are a few options that might make more financial sense:\n**Negotiate direct payments.** Talk to your provider before you finance your medical bill. They may be willing to reduce or eliminate charges up front. They may also work out a plan for you to pay them back directly, possibly with low or no interest attached.\n**Seek financial assistance.** Many providers—especially hospitals—have financial assistance programs for patients with qualifying incomes. There may also be programs in your community to help people in need.\n**Save up and pay cash****.** Although this won't work for emergency or urgent treatment, it's worth considering for elective procedures.\n**Use a traditional credit card.** Check the rates and any promotional offers on your existing cards—and shop for new credit cards with 0% interest promotions or competitive interest rates. You may beat any deal you can get from a medical credit card.\n**Consider a personal loan.** A personal loan enables you to pay off medical debt in regular installments over time, with interest rates that may be lower than what you'd pay on your credit card. You can browse personal loans that match up with your credit score using Experian CreditMatch™.  \nFinding Your Best Option\n------------------------\nA medical credit card can be a viable alternative for paying off medical expenses. Just make sure you first understand rates, terms and the impact on your credit—as well as taking the time to determine whether a new medical credit card is in fact your best, most painless option. If you're in a position where credit is needed to help you cover your medical costs, first be sure to understand your credit situation so you can better focus your efforts. Whether that means improving your scores or applying for debt you can qualify for, checking your credit report and score is usually a wise first step. END
 TITLE: What Is a Medical Credit Card? CONTENT: Pros and Cons of Medical Credit Cards\n-------------------------------------\nAre medical credit cards a good deal? Here's a quick breakdown of the pros and cons:\n**The Pros**\n*   Quick access to available credit if your current credit options won't cover your medical bills.\n*   Zero-interest financing, if you can pay off your balance within the introductory period.\n*   Medical debt is isolated to a specific account, making it easier for you to track your medical expenses and pay off your bills in a targeted manner.\n**The Cons**\n*   It might be difficult to pay off your balance by the time a deferred-interest period ends. When this happens, you may be charged interest retroactively for the deferral period. Late payment penalties can also be high—and a late payment may cause your introductory period to end early.\n*   You may be worse off with a medical credit card than a general-purpose credit card. If you're eligible, you can find traditional credit cards with perks including:\n    *   An introductory 0% rate that doesn't charge retroactive interest if you have a remaining balance when the period ends.\n    *   A lower overall interest rate.\n    *   Rewards or cash back.\n    *   Greater versatility.\n*   You may be tempted to apply for and accept this financing without reading the fine print because it's recommended by your provider. There's nothing inherently wrong with medical credit cards but, as with any credit, you should weigh all the facts and make a careful decision. END
 TITLE: What Is a Medical Credit Card? CONTENT: How Medical Credit Cards Affect Your Credit\n-------------------------------------------\nBefore you apply for a medical credit card and put your balance on it, take a moment to understand how medical debt affects your credit. Medical debt doesn't appear on your credit report like other types of debt do. That is, unless, you become significantly past due on your medical debt payment and your account is transferred to a debt collector. Once you put medical expenses on a medical credit card, however, it's likely to become regular credit card debt, at least from the perspective of your credit report.\nAlso, different cards impact your credit differently. Some card programs say they accept all patients, regardless of credit, and never report to credit bureaus. Others operate more like regular credit cards: They require a credit application and credit check. Once approved, your credit line becomes part of your available revolving credit and any charges you make on your card count toward your credit utilization ratio. On-time payments, as well as late payments and defaults are reported, just as they would be on any other credit card accounts.\nIn every case, it's important to understand the following: What does the credit application process require? How will your credit score and report affect your offer? How will information about your account be reported to credit bureaus? END
 TITLE: What Is a Medical Credit Card? CONTENT: Alternative Ways to Pay for Medical Debt\n----------------------------------------\nFinally, ask yourself whether a medical credit card is the best way to pay off your medical debt. Here are a few options that might make more financial sense:\n**Negotiate direct payments.** Talk to your provider before you finance your medical bill. They may be willing to reduce or eliminate charges up front. They may also work out a plan for you to pay them back directly, possibly with low or no interest attached.\n**Seek financial assistance.** Many providers—especially hospitals—have financial assistance programs for patients with qualifying incomes. There may also be programs in your community to help people in need.\n**Save up and pay cash****.** Although this won't work for emergency or urgent treatment, it's worth considering for elective procedures.\n**Use a traditional credit card.** Check the rates and any promotional offers on your existing cards—and shop for new credit cards with 0% interest promotions or competitive interest rates. You may beat any deal you can get from a medical credit card.\n**Consider a personal loan.** A personal loan enables you to pay off medical debt in regular installments over time, with interest rates that may be lower than what you'd pay on your credit card. You can browse personal loans that match up with your credit score using Experian CreditMatch™.  \nFinding Your Best Option\n------------------------\nA medical credit card can be a viable alternative for paying off medical expenses. Just make sure you first understand rates, terms and the impact on your credit—as well as taking the time to determine whether a new medical credit card is in fact your best, most painless option. If you're in a position where credit is needed to help you cover your medical costs, first be sure to understand your credit situation so you can better focus your efforts. Whether that means improving your scores or applying for debt you can qualify for, checking your credit report and score is usually a wise first step. END
 TITLE: What Is a Medical Credit Card? CONTENT: Finding Your Best Option\n------------------------\nA medical credit card can be a viable alternative for paying off medical expenses. Just make sure you first understand rates, terms and the impact on your credit—as well as taking the time to determine whether a new medical credit card is in fact your best, most painless option. If you're in a position where credit is needed to help you cover your medical costs, first be sure to understand your credit situation so you can better focus your efforts. Whether that means improving your scores or applying for debt you can qualify for, checking your credit report and score is usually a wise first step. END
 TITLE: How Can I Reduce the Anxiety I Feel When Spending Money? CONTENT: Why People Get Anxious Over Spending Money\n------------------------------------------\nThere are many reasons why spending might cause you anxiety.\nIf you grew up experiencing financial hardships, you may feel the sting of remembered trauma. Spending can deplete your assets and make you more vulnerable to everything from momentary deprivation to eviction or bankruptcy—and that can make you anxious. Or you may spend money impulsively—or compulsively—and feel buyer's remorse after the fact.\nMoney is a frequent cause of friction between partners, as well, especially if your spending priorities are at odds. Some couples who disagree about money end up spending in secret or racking up debt that they hide from their partners.\nAny real financial difficulties you may be facing can ratchet up the severity of your money anxiety. Maybe you've lost your job—or worry that you will in the near future. You may have growing debt and wonder how you'll ever pay it off. Millions of Americans live paycheck to paycheck, without much set aside for an emergency. In this case, an unexpected expense or regrettable spending decision, even a small one, can throw you for a loop.\nWhatever your situation, money anxiety doesn't have to rule your life. Start by identifying some of the underlying causes of your stress, then look for ways to defuse them. END
 TITLE: How Can I Reduce the Anxiety I Feel When Spending Money? CONTENT: Analyze Your Finances to Get to the Root of Your Anxiety\n--------------------------------------------------------\nFeeling out of control is one of the most basic sources of spending anxiety. Creating a simple budget can help by showing how your income and expenses compare. A budget helps you carefully track your expenses so you can make adjustments as necessary. Online and mobile tools, including a free personal finance tool from Experian, can show your spending across multiple accounts and even send you alerts when transactions occur.\nHow does tracking your money help?\n*   **You'll better understand where your money goes.** Did you ever open your banking app only to discover a shockingly low account balance? Didn't you just get paid? What happened? If it wasn't fraud, it might be unconscious spending. Or you simply don't have a dollar-for-dollar, day-by-day understanding of where your money goes. Tracking your money makes this spending clear and visible—and can help you stay disciplined as you plan out your expenses going forward.\n*   **It'll give you a measure of control over how you spend.** If it turns out you really can't afford something, it's better to know now than to have a rude awakening when coming up with cash to pay the water bill. If you know when and where spending is problematic, you can cut it before real damage is done.\n*   **It can offer you the opportunity to spend without fear.** A healthy budget doesn't necessarily mean a minimalist lifestyle. If you budget correctly, you can pay for that gym membership or new pair of jeans without worrying that you're robbing yourself of essential funds or the ability to retire someday. Tracking your spending lets you know you're on target, and still gives you room to spoil yourself. END
 TITLE: How Can I Reduce the Anxiety I Feel When Spending Money? CONTENT: Along with budgeting and tracking your finances, consider these tips for reducing your money stress:\n*   **Create an emergency fund.** Knowing you can handle a few of life's curveballs is a huge confidence builder.\n*   **Save regularly****.** Living within your means and socking away a portion of your income every month can help alleviate the panic that comes with spending every dollar you earn.\n*   **Set goals and work toward them.** Nothing soothes like success. Bonus: You'll sleep better knowing you have medical savings or are building a retirement fund.\n*   **Get financial help.** Read up, take a personal finance class or seek out a personal finance advisor. You don't need to become an economic expert, but familiarize yourself with the practical tools you can use to help you manage your money. Financial help doesn't need to come at a cost, either. A certified credit counselor may be able to provide free help, financial literacy education and other services. END
 TITLE: How Can I Reduce the Anxiety I Feel When Spending Money? CONTENT: Paying Off Debt May Help Reduce Financial Anxiety\n-------------------------------------------------\nThe term \"nagging debt\" is right on the money. Debt belongs in its own category when it comes to financial stress. Why is hard-to-manage debt uniquely distressing?\n*   Monthly payments can make your finances unworkable.\n*   As spending, interest charges and fees snowball, debt can feel out of control.\n*   High credit card balances mean less available credit to use in a genuine emergency.\n*   High credit utilization affects your credit score. Lower credit scores make it harder to access loans and credit at desirable rates.\n*   Large debt can seem impossible to pay off.\nIf looming debt is causing you anxiety, it's time to take action. Paying down debt can be a slow process, but even as you go, reducing debt may reduce your anxiety levels as well. By taking control of the situation, you'll feel more empowered and less unnerved. As you activate your plan to pay down debt, don't forget to monitor your credit score and report to make sure your progress is being reflected.\nAnxiety over spending is annoying, and sometimes even debilitating. But it can also prompt you to practice better money management, clean up your credit practices, and set and achieve financial goals. Taking steps to address the cause, not just the symptoms, of your anxiety can help you lead a happier life. END
 TITLE: Can You Declare Bankruptcy on Medical Bills? CONTENT: Is Medical Debt Dischargeable in Bankruptcy?\n--------------------------------------------\nYou can't limit a bankruptcy case to medical bills, but you can get relief from your medical debt through the bankruptcy process. In a bankruptcy, medical debt is considered non-priority unsecured debt: It's dischargeable, meaning it can be forgiven. By contrast, priority debt—such as tax bills, child support and most student loans—can't be eliminated through bankruptcy. And defaulting on a secured debt like a mortgage or car loan will result in the loss of your collateral.\nIf you're considering bankruptcy to help you deal with overwhelming debt—including medical bills—know that this is a major step that will have lasting implications for your credit for years to come. During the bankruptcy process, you'll work with a court-approved credit counselor and a trustee who will oversee your case. You will need to disclose all of your debts, income and property so that the court can determine what the outcome and next steps will be. Bankruptcy is complicated, so it helps to learn about the bankruptcy process before you start.\nThere are two main types of personal bankruptcy: Chapter 7 and Chapter 13. Both address the underlying problem of excess debt, but the two processes differ quite a bit. Here is a quick rundown on each. END
 TITLE: Can You Declare Bankruptcy on Medical Bills? CONTENT: Chapter 7 Bankruptcy and Medical Debt\n-------------------------------------\nChapter 7 bankruptcy is designed to help people who can't afford to repay their debts. The court will consider what you owe, your income and any assets that can be sold to help defray your debt. Chapter 7 discharges your medical debt in a matter of months, but it isn't an option for everyone. A few specifics:\n*   **Chapter 7 is means-based.** To file for Chapter 7 bankruptcy, your income must be below your state's median for a household of your size.\n*   **Some of your property may be liquidated.** The money received will be used to pay your creditors. Exemptions exist, but in the end you are likely to lose property in a Chapter 7 proceeding.\n*   **The process takes four to six months.** When the bankruptcy is final, your eligible debts are discharged, or forgiven.\n*   **A Chapter 7 bankruptcy stays on your credit report for 10 years.** During this time, having a bankruptcy on your credit report may make it difficult to get approved for loans or secure favorable rates and terms. END
 TITLE: Can You Declare Bankruptcy on Medical Bills? CONTENT: Chapter 13 Bankruptcy and Medical Debt\n--------------------------------------\nChapter 13 bankruptcy focuses on making debt repayment more manageable. After taking into account all of your debt, income and assets, a Chapter 13 bankruptcy establishes a court-mandated plan that helps you repay some or all of your debt—including medical bills—in affordable monthly installments that do not exceed 15% of your disposable income. Additional details:\n*   **Chapter 13 creates a three- to five-year repayment plan.** The plan is based on your debt and income levels. Some or all of your remaining debt may be discharged at the end of the repayment period, freeing you from further payments.\n*   **Debt cannot exceed certain levels.** To file for Chapter 13 bankruptcy, you must have no more than $394,725 in unsecured debt and no more than $1,184,200 in secured debt.\n*   **You must have regular income.** For Chapter 13 to work, you need the means to repay your loans, even at a reduced level.\n*   **Chapter 13 may be better for homeowners.** Chapter 13 halts the foreclosure process and requires your mortgage lender to let you include your home loan as part of your repayment plan.\n*   **Resolution takes longer.** While a Chapter 7 bankruptcy is over in four to six months after the proceedings end, Chapter 13 stretches out over years. END
 TITLE: Can You Declare Bankruptcy on Medical Bills? CONTENT: Alternative Options for Getting Rid of Medical Debt\n---------------------------------------------------\nYou may have alternatives to bankruptcy worth exploring as well. Before throwing in the towel on your medical debt, consider the following steps to reduce it or pay it off:\n1.  Audit your bills. Check for billing errors or unauthorized charges. Make sure your insurance has paid for covered expenses.\n2.  Negotiate your costs. Hospitals and medical providers may be able to discount your costs, especially if you don't have insurance.\n3.  Look for financial assistance options. Many hospitals have income-driven repayment plans or other types of financial assistance. Local charities may be able to help as well.\n4.  Work out a payment plan with your provider. Many medical providers would prefer to work out a low- or no-interest payment plan than to send your bill to collections—or see it end up in bankruptcy.\n5.  Seek out low-interest credit cards or loans. Medical credit cards often come with introductory 0% interest offers. Personal loans may be available at interest rates that are lower than what you might pay on regular credit cards. END
 TITLE: Can You Declare Bankruptcy on Medical Bills? CONTENT: Recovering Your Financial Health\n--------------------------------\nIf you've considered all your options and bankruptcy still seems like the best remedy, getting help is a good idea. Since bankruptcy proceedings often require you to meet with a court-approved credit counselor as part of the process, consider meeting with one pre-emptively to help you understand whether bankruptcy is necessary and to help you decide how to proceed. When you're ready to move forward, a bankruptcy attorney can help you navigate your way through.\nMedical expenses can seriously set you back financially. When this happens, bankruptcy may be able to help you get back on the right path. It's a difficult process with significant long-term consequences, but it could offer you the opportunity to reset your finances, rebuild your credit and recover your financial health. END
 TITLE: What Is Passive Income? CONTENT: How to Create Passive Income\n----------------------------\nThe best way to create passive income is to assess your interests, talents and resources, and choose opportunities that suit you. There are many opportunities to make money working from home, and you don't have to limit yourself to just one. In fact, developing a few sources of passive income will improve your chances of success.\nIf your available time and money are limited, look for low-impact opportunities that are easy to start:\n*   **Build an investment fund.** Learn about basic investment strategies and economic trends or find a good financial advisor to guide you. Stocks that pay dividends are often good sources of passive income. Starting small? Consider an app like Acorns, where you can invest as little as $1 a month and use the \"change\" you get from rounded-up transactions to start a nest egg.\n*   **Rent out your garage or spare vehicle.** You don't have to have a home to rent—or even a room. You can rent out your car on a platform like Turo or rent your garage on sites like Neighbor.com.\n*   **Leverage cash back credit cards.** Here, you'll have to spend money to make money. But if you have cash back credit cards and enough discipline to pay off your balance every month, you can charge your everyday expenses on your card and collect the rewards dollars as passive income without paying high interest on a balance.\n*   **Declutter and sell items online.** Depending on what lurks in your closets, you may be able to generate a bit of spending money—or funds to invest.\nFeeling a little more ambitious? These ideas require quite a bit more time and\/or money, but offer a higher potential upside as well:\n*   **Write a book, design an app or license your intellectual property.** You'll need skill, talent, expertise or inventiveness—along with the time and focus to bring your idea to fruition. But you don't have to be a proven genius to succeed. Have you devised a solution to a common problem? Are you an expert who can share your knowledge in an e-book on Amazon or a video course for a platform like Coursera? You may be able to sell or license your idea for ongoing profits.\n*   **Try affiliate marketing.** If you've cultivated an audience on social media—or elsewhere, for that matter—you can market other companies' goods and services using affiliate links. You'll receive a commission for every completed purchase that comes in through your link, sometimes even if the items purchased aren't the ones you originally promoted. Creating the content needed to build a social media following is definitely more active than passive, though, and only you know if you have an inner influencer ready to be unleashed.\n*   **Buy a rental property.** Although this option requires real capital, it can create wealth in two ways: by generating monthly income and building equity in your property. Purchase a home in your favorite vacation destination and you'll create a built-in travel opportunity whenever your place isn't rented out on Airbnb or Vrbo.\n*   **Be a \"silent\" investor in a business.** Being an entrepreneur is anything but passive. However, becoming a silent business partner by investing in a friend's or business associate's venture can allow you to participate in a growing business without contributing a lot of sweat equity. Just make sure you're not dependent on this income for your livelihood, as investments in startups and other ventures typically carry significant risk. END
 TITLE: What Is Passive Income? CONTENT: Is Passive Income Taxable?\n--------------------------\nLike nearly every type of income, passive income is taxable. Exactly how it is taxed depends on a variety of factors. Investment income, for example, may be calculated and taxed differently from passive business income, property rental proceeds or cash back credit card rewards.\nThe most important takeaway now: Find out what your potential tax liability is before you pursue—and especially before you spend—any passive income. Since there are no automatic payroll deductions associated with this type of income, you want to know in advance how much of your earnings you should set aside for taxes and what documentation you will need at filing time. END
 TITLE: What Is Passive Income? CONTENT: Income Independence Is Its Own Reward\n-------------------------------------\nCultivating passive income takes some active research and, often, more than a little work. But the payoff can be significant. Having a stream of income that's not dependent on employment or contracting can be a hedge against lean economic times or help enrich your retirement. Whether you generate a little passive income or a lot, the security of having more than one source of money is in itself a reward. END
 TITLE: How Does a Hardship Loan Affect Your Credit? CONTENT: What Is a Hardship Loan?\n------------------------\nA \"hardship loan\" may be more of a marketing term than a technical one, says Rod Griffin, senior director of public education at Experian. \"Typically, these are small-dollar, short-term personal loans that are meant to help people get through difficult times,\" Griffin says. \"Some may carry a slightly higher interest rate because they're being marketed to people who are experiencing financial difficulty.\"\nWho offers hardship loans?\n*   **Personal loan providers** specialize in uncollateralized loans, although they aren't necessarily called hardship loans.\n*   **Government programs** may exist to help people in need, particularly if you're looking for a small business or agricultural loan. Check this interactive government loan finder for federal resources, or investigate programs in your state or local area.\n*   **Employers and employee groups** may offer loans to employees, such as programs for federal employees.\n*   **Credit unions** often provide hardship loans to their members and may feature relatively low interest rates.\n*   **Banks** don't always offer these types of loans, but it never hurts to check with your bank for options.\nNot all lenders who advertise hardship loans are great options, however. Some loan offers are scams, while others may come from predatory lenders that charge triple-digit interest rates and give you only a few weeks to repay. These loans make it difficult to get out of debt. Because the term \"hardship loan\" can mean so many different things, it's critical to gather and verify as much information as possible before you apply for a loan. END
 TITLE: How Does a Hardship Loan Affect Your Credit? CONTENT: How Do Hardship Loans Impact Your Credit?\n-----------------------------------------\nWhen considering a prospective lender, it's important to find out how the loan will affect your credit. Griffin suggests asking any lenders you're considering the following questions:\n*   Will you perform a credit check?\n*   Will this loan be reported to the credit reporting agencies?\n*   Will it be reported as an installment loan?\n*   If the lender doesn't report the loan as an active account, will late payments or other negative issues be reported?\n\"If a lender is reporting your loan, it should appear as an installment loan on your credit report, along with the principal loan amount, your payment history, whether or not your loan is current, and so on,\" Griffin says. \"You shouldn't see any surprises from a credit reporting perspective.\"\nAs with any loan, keeping up with your monthly payments until your debt is paid off will typically raise your credit score; falling behind will send your score in the opposite direction.\nWhat if your lender says they'll skip the credit check and credit reporting? This may not be great news, says Griffin: \"Payday or title loan lenders may position their loans as hardship loans, but high interest rates and extremely short payoff periods make it easy to get trapped in overwhelming debt.\" A lender that's promising fast cash with easy qualification or no credit check—especially coupled with high interest rates, exorbitant fees and\/or a quick payoff term—is probably making you an offer you should refuse. END
 TITLE: How Does a Hardship Loan Affect Your Credit? CONTENT: Alternatives to Hardship Loans\n------------------------------\nIf a hardship loan doesn't sound like the right fit for you but you still need emergency cash, consider these alternatives:\n*   **Personal loans**: Private lenders offer a wide selection of personal installment loans you can use for almost any purpose, including as an emergency loan when you're short on funds. Rates and fees vary by lender and your credit score, and you will need to demonstrate your ability to repay. You can use the Experian CreditMatch™ online tool to compare lenders and loan offers.\n*   **Hardship assistance**: Although it isn't cash in hand, you may be able to defer monthly loan or credit card payments by contacting your lenders directly and asking for hardship assistance.\n*   **Credit card cash advance**: Cash advances often come with fees and high interest rates. In a pinch, though, they can be a source of ready funds that won't put you through a credit application process.\n*   **Hardship distributions from your retirement account**: Some plans offer hardship withdrawals from your 401(k), 403(b) or 457(b) account. Raiding your retirement isn't optimal, and criteria to qualify for hardship distributions vary. Ask your retirement plan administrator for details. If your plan offers 401(k) loans, this might be another option to consider.\n*   **Nonprofit programs**: Organizations in your area may be able to help you cover the cost of food, housing, utilities and more while you regain your financial footing. Or consider a nonprofit lending circle such as Mission Asset Fund for nontraditional, low-interest loan options. END
 TITLE: How Does a Hardship Loan Affect Your Credit? CONTENT: How to Prepare for the Next Hardship or Emergency\n-------------------------------------------------\nOnce this rough patch is behind you, think about how you can prepare for the next financial emergency. Although it may not be possible to prepare for every unexpected financial turn, you can take positive steps to fortify yourself against future surprises.\n**Create a budget** **with built-in savings.** A monthly budget helps you rein in spending, and it can also help you build an emergency fund. The key is to stick to your budget and save regularly. Having three to six months' worth of expenses will help defuse the impact of any future financial setback.\n**Mind your credit.** Available credit is a valuable resource when you need funds; good credit helps you access loans and credit when you need it. You can stay on top of your credit score and report with free credit monitoring from Experian, so you can ensure you'll have the best possible options if you ever face a moment of hardship again. END
 TITLE: Create a College Budget Plan in 4 Easy Steps CONTENT: Review Your Financial Game Plan for College\n-------------------------------------------\nStart by thinking broadly. Before you take the time to set up a budget, it's important to understand the financial expectations you and your family have about paying for college.\n*   **How will you pay for college?** Tuition and the university fees that accompany it are your core college expenses—and the costs can range from relatively affordable to nearly astronomical. For most students, tuition costs are covered by some mix of parent contributions, financial aid, student loans and personal income or savings.\n*   **Are you eligible for financial aid or federal loans?** If you're relying on financial aid or loans from the government or your school, you'll need to fill out the Free Application for Federal Student Aid (FAFSA) the spring before you're planning to attend college, if not earlier. Visit the FAFSA site to learn more about state and federal deadlines. And check out these tips on avoiding mistakes when applying for financial aid.\n*   **Will you or your parents be taking out student loans?** Creating a simple budget will help you figure out how much money you need to borrow without taking on more debt than is needed. Budgeting in advance can also help you determine if you're comfortable with the level of debt you'll need to take on to get a degree from the school of your choice. After running the numbers, you may decide to go to a cheaper school or complete general education requirements at a community college.\nWhile you're thinking about funding, take a moment to list all of your potential income sources for the school year, including your personal savings, possible work opportunities, gifts from family members and scholarships. You'll need this information when you're assembling your budget. END
 TITLE: Create a College Budget Plan in 4 Easy Steps CONTENT: List Out Your Expenses\n----------------------\nOnce you have a plan for covering tuition, you can begin listing out the additional expenses you'll have during the school year. For each line item, make your best guess for how much you'll spend, both for the semester or quarter and month by month. For now, don't try to economize with your estimates: Give an honest assessment of how much you'd like to have to cover each category. You can sharpen your pencil and cut a few costs later in the process.\nHere are some expense categories to consider:\n*   **Housing**: Dorm fees or rent. Look at how much it costs to live in student dorms as well as the going rate for apartments near campus. Living off-campus and riding a bike or driving to school may be the cheaper option.\n*   **Food**: Include the cost of your meal plan, if you have one, plus any meals you plan to prepare yourself (even if it's instant ramen or cereal). Don't forget snacks, takeout and any restaurant eating you plan to do.\n*   **Textbooks and school supplies**: If you need one, budget for a computer or tablet for your first term.\n*   **Utilities and internet**: These may be included in your campus housing or off-campus rental cost: Check to make sure.\n*   **Transportation**: You may be eligible for student discounts on public transportation. If you're bringing a car to college, factor in car payments, insurance, registration, gas, repairs and maintenance.\n*   **Personal items**: You can't go four years without buying shampoo or deodorant: Don't try it. You'll also need haircuts, toothpaste and—when you move in—bedding, trash bags, laundry detergent … the list goes on.\n*   **Entertainment**: Many campuses host free events throughout the year. Even so, factor in any concerts you might want to attend, plus movies, sports you like to participate in, and so on.\n*   **Travel**: This includes travel to and from school, as well as any extracurricular trips you hope to take during spring break or holidays.\n*   **Clothing**: Remember that if you're moving to a new climate, you'll need at least a few new items so you won't freeze or swelter.\nAlso, think about how you will handle unforeseen expenses. Do you have an emergency fund you can add to regularly? Can your parents back you up financially if you have unbudgeted expenses? Would a credit card for emergencies only be helpful? END
 TITLE: Create a College Budget Plan in 4 Easy Steps CONTENT: Track Your Spending and Income\n------------------------------\nUnderstanding your income and regular expenses is half the battle. The other half is actually implementing your budget in real life. Your budget will do you no good if it's not adhered to. As part of your budgeting process, think through how you'll track your income and expenses as the year unfolds.\nYou can use good old pen and paper to keep track of expenses and\/or create a simple spreadsheet that shows your income and expenses. You can also use your online banking app to stay on top of transactions. Checking your account activity frequently for fraudulent charges is a good idea anyway.\nYou might also consider using a personal finance app or tool to track income and spending. If you have a free Experian account or sign up for one, you can use Experian's free personal finance tool to track your spending across multiple accounts. The tool even categorizes your transactions so you can easily match your spending against your budget. Depending on where you do your banking, you may have access to personal finance features built right into your bank's website or mobile app.\nCurious about your options? Learn more about tracking expenses and the tools that make it easier. END
 TITLE: Create a College Budget Plan in 4 Easy Steps CONTENT: Fine-Tune Your Budget and Stick to It\n-------------------------------------\nNow that you know your expected income and expenses—and you have a strategy for tracking your spending—you are the proud creator of a budget. Your goal moving forward is to make sure your income is adequate to cover your planned expenses. If, after living with your budget for a month or two, you find that your budget doesn't work, go back and look for opportunities to either dial back expenses or raise your income.\nA few tips to keep in mind:\n*   Your expenses during the first month of school may run a little high. That's because you may need to purchase items you took for granted when you were living at home. It may also be that you've never had to mind your spending this way.\n*   Be prepared to make potentially painful adjustments. Saying goodbye to spring break in Florida and twice-daily trips to the coffee bar may be difficult, but it can save you from financial turmoil, or the need to come up with additional funding to bridge the gap.\n*   Successful budgeting is all about recovery. Occasional overspending is a fact of life. As long as you can figure out how to account for it—and you don't miss any essential payments like rent or tuition—you'll be fine.\nIn the end, budgeting isn't a matter of sticking rigidly to an ideal set of numbers. It's more a question of creating parameters you can comfortably live within; guidelines that let you know when and how much you can comfortably spend at any given time—and still be able to cover your necessary expenses.\nIf you're having a difficult time making your budget work, or you're concerned about what will happen if you have unexpected expenses, now is a great time to talk to your parents or get help from a school counselor. Ideally, a budget should help you alleviate your stress about money so you can focus on becoming the educated, independent adult you want to be. END
 TITLE: How Does Cosigning Affect Your Credit? CONTENT: When Can Cosigning Hurt Your Credit?\n------------------------------------\nWhen you cosign a loan, credit card or rental agreement, you take on a legal obligation to make payments if the primary borrower can't or doesn't follow through. Cosigning may hurt your credit if:\n*   **A payment is over 30 days past due.** The creditor can report the late payment to the credit bureaus. Every late payment can then show up in your credit reports and hurt your credit scores.\n*   **The cosigned vehicle is repossessed.** If the vehicle you cosigned for is repossessed, that can also hurt your credit regardless of whether you used the vehicle.\n*   **The account is sent to collections.** A collection account can hurt your credit even if you weren't aware that the primary borrower was behind on payments. This can happen with rental agreements as well, even when the landlord wasn't reporting the on-time rental payments.\nOpening a new account can also hurt your credit scores if it adds a hard inquiry to your credit report and brings down the average age of your accounts. These are relatively minor scoring factors, but you may see a dip in your scores right after the account is opened and reported. END
 TITLE: How Does Cosigning Affect Your Credit? CONTENT: When Can Cosigning Help Improve Your Credit?\n--------------------------------------------\nBeing a cosigner on a loan can also help you establish and improve your credit when:\n*   **The payments are made on time.** Payment history is the most important factor in your credit scores, so making all loan payments on time can go a long way toward boosting your credit.\n*   **The loan is paid off as agreed.** This shows future lenders you can manage credit responsibly.\n*   **The new account adds to your credit mix.** Managing different types of credit, such as installment loans and revolving credit, can help your credit scores.\nIn short, cosigning can help your credit as long as the primary account holder manages the account responsibly. END
 TITLE: How Does Cosigning Affect Your Credit? CONTENT: What Is the Difference Between an Authorized User and a Cosigner?\n-----------------------------------------------------------------\nMost credit card issuers don't let you cosign for a credit card or accept joint applications. But the primary cardholder may be able to add someone as an authorized user on their card.\nAn authorized user receives a credit card with their name on it, and the card is linked to the primary cardholder's account. The authorized user can then make purchases and, if it's a rewards card, the purchases could increase the account's rewards balance.\nHowever, unlike cosigners, authorized users aren't responsible for the debt. You may have an informal agreement that the authorized user will pay for their purchases, but only the primary cardholder is legally responsible for the entire bill and balance.\nSimilar to cosigning, credit card issuers can report the authorized-user account to the credit bureaus, which can help or hurt their credit. Paying the monthly bill on time and having a low credit utilization ratio may improve both the primary and authorized user's credit. Missed payments and high balances could hurt their credit.\nIf you no longer want to be an authorized user on an account, you may be able to remove yourself from the account and have the account taken off your credit report. Experian also automatically removes delinquent accounts from authorized user's credit reports, as they're not responsible for the past-due debt. END
 TITLE: How Does Cosigning Affect Your Credit? CONTENT: What to Consider Before Cosigning\n---------------------------------\nBeyond the potential impact on your credit scores, there are many reasons that you want to think carefully before cosigning a loan.\n*   **How will cosigning impact your relationship?** Your relationship with the friend, family member or partner may be strained if they stop making payments.\n*   **You need good credit to help.** Generally, someone will ask you to cosign a loan because they can't qualify for a good offer on their own. However, you'll only be able to help if you have good credit.\n*   **Cosigning can affect your ability to get financing.** In addition to the impact on your credit scores, lenders may include the payments you cosigned for when calculating your debt-to-income (DTI) ratio. A high DTI can make getting a loan or line of credit more difficult.\n*   **You are legally responsible for the entire debt.** Cosigners are also responsible for fees and collection costs that accrue when payments on an account get missed. Creditors can sue you and may be able to garnish your wages or bank accounts to collect the outstanding debt.\n*   **A divorce doesn't end your obligation.** If you cosigned a loan with a former spouse, a divorce decree doesn't end your legal responsibility for the debt.\n*   **The negative impact on your credit scores can stick.** Bringing an account current or paying off a defaulted loan won't necessarily fix your credit. The derogatory marks can stay on your credit reports and hurt your credit scores for up to seven years. END
 TITLE: How Does Cosigning Affect Your Credit? CONTENT: Check Your Credit and Consider the Risks\n----------------------------------------\nWhile cosigning can help a friend or loved one qualify for a loan or rental they wouldn't otherwise be approved for, it can also wind up being a disaster for your finances and relationship. If you think you may want to be a cosigner, check your credit—you can review your credit score for free through Experian—and determine if you'll be able to help. If you can, carefully consider what could happen in a worst-case scenario before you agree to cosign. END
 TITLE: Does Closing an Account Hurt your Credit? CONTENT: Why Closing a Credit Card Account Can Impact Your Credit\n--------------------------------------------------------\nYour credit utilization ratio, also called your balance-to-credit-limit ratio, is the second most important factor in credit scores. It measures how much of your available revolving credit you're using at any given time. The lower your utilization rate, the better for your scores.\nIf you close a credit card account and still have balances on other cards, those balances will make up a greater percentage of your total available credit limit. To calculate your utilization ratio, divide the total of all your credit card balances by the total of all your credit card limits, then multiply by 100 to get a percentage.\nCredit score experts recommend keeping your utilization ratio under 30%, and people with the best scores tend to have utilization of less than 10%. END
 TITLE: Does Closing an Account Hurt your Credit? CONTENT: Should You Close Accounts After Paying Off the Debt?\n----------------------------------------------------\nIf you are working to improve your credit scores, it's typically best to leave your credit cards open once they are paid off. Ideally, you should keep those accounts active by making small purchases and paying your balances in full each month.\nThis is especially true if you are planning to take out a loan, such as an auto loan or mortgage, in the next three to six months. You'll want to keep your credit history stable until that credit transaction is complete. END
 TITLE: Does Closing an Account Hurt your Credit? CONTENT: When Does It Make Sense to Close a Credit Card?\n-----------------------------------------------\nAlthough closing your credit card account once it's paid off can cause a dip in scores, there are some instances where it still may make sense to do so. If you have more than one credit card and the account in question has an annual fee, it may not make good financial sense to continue paying for a card you no longer use.\nAnd, if you've struggled with credit card debt in the past and leaving the account open represents temptation to charge more than you can afford to repay, closing it may be the best decision. Although your scores may decrease initially when you close an account, they typically rebound in a few months if you continue to make your payments as agreed, assuming everything else in your credit history remains positive.\nIf you decide closing the account is the best option, contact your lender to notify them that you wish to close it and ask whether there are any outstanding charges or fees. Also make sure you won't lose any rewards you've earned before you close the account—or try to use them first. You will also need to notify any company with whom you have set up automatic charges to that account. Finally, you should cut up or shred the card before disposing of it. END
 TITLE: Does Closing an Account Hurt your Credit? CONTENT: Does Closing a Bank Account Affect Your Credit?\n-----------------------------------------------\nBank account information is not part of your credit report, so closing a checking or savings account won't have any impact on your credit history. However, if your bank account was overdrawn at the time it was closed and the negative balance was left unpaid, the bank can sell that debt to a collection agency. The company that buys the debt can then report the collection account to the credit reporting companies, which could cause scores to plummet.\nWhen closing a bank account, you should contact your bank to ensure that all withdrawals have cleared, and that no money is owed. Take inventory of any pending payments that may not have cleared yet. Make sure to cancel any automatic payments you have set up before the account is closed. END
 TITLE: Does Closing an Account Hurt your Credit? CONTENT: Improving Your Credit Scores Going Forward\n------------------------------------------\nIf you are trying to improve your credit scores, paying down credit card debt is an important step. Keeping a low utilization rate and making all payments on time are the two most important factors in having good credit scores. You can also increase your credit scores by signing up for Experian Boost™† . With Experian Boost, you can get credit for your on-time utility, cellphone and streaming services payments. Those payments can be added to your credit report going back as far as 24 months, and can increase your credit scores immediately. Signing up is free and takes just a few minutes. END
 TITLE: How to Start Increasing Your Net Worth Today CONTENT: Calculate Your Net Worth\n------------------------\nYou can determine your net worth by subtracting your liabilities from your assets. Liabilities include anything you owe, such as credit card debt, a mortgage loan and student loans.\nOn the flip side, assets are anything you have that you could potentially use to pay off debt. This can include checking and savings account balances, investments accounts, a home or a car.\nTo calculate your net worth:\n*   **Pick a date**: Your net worth is a snapshot of your financial situation at a single moment, so pick a date, either at the end of the month, quarter or year, on which you'll calculate your balances.\n*   **Gather the data**: Log into your online accounts and pull up statements from all of your assets and liabilities to determine their balances on the date you chose. If you're counting a vehicle or a home, use the fair market value based on the last appraisal or an educated guess based on the value of comparable homes and vehicles in your area.\n*   **Do the math**: Start by adding up your assets and liabilities separately, then subtract the latter from the former.\nNote that if your liabilities exceed your assets, your net worth will be negative. This means that you cannot currently pay off all of your debt if you lose your job or something else happens that has an adverse impact on your financial health.\nIf your assets exceed your liabilities, however, that means you can satisfy all of your debts with what you already own, with some money to spare. END
 TITLE: How to Start Increasing Your Net Worth Today CONTENT: Pay Off What You Owe\n--------------------\nHaving liabilities isn't necessarily a bad thing, especially if your interest rates are low and your monthly payments are affordable. But if you have a negative net worth or your debt is keeping you from achieving your ideal number, work on getting out of debt.\nTo do this, start by listing everything you owe. Then target your highest-interest debts, such as credit cards and subprime loans, first. Then work down the line to lower interest rates. Alternatively, you can start with the debt with the lowest balance and work your way up to the one with the highest balance.\nAs you're working to pay down your debt, consider calling your creditors—especially credit card companies—and asking for a lower interest rate. While you may not be successful every time, you may get a pleasant surprise from at least one of them.\nIf you're dealing with very high interest rates, consider using a balance transfer credit card or a debt consolidation loan to help lower your interest rates and give you a head start on eliminating your debt.\nAs you pay down your debt, your debt-to-income ratio (DTI), which is a key factor lenders consider when you apply for a loan or credit card, will also go down. A lower DTI can also help increase your credit score, giving you more opportunities to qualify for credit at favorable rates. END
 TITLE: How to Start Increasing Your Net Worth Today CONTENT: Look for Additional Income\n--------------------------\nIt's not always easy to find ways to earn more money, especially if you're already working multiple jobs or you don't have a lot of free time for other reasons.\nIf you can manage it, though, there are some simple ways you can find some extra money:\n*   **Reduce your tax withholding from your paycheck**: If you get a big tax refund every year, you don't have to wait until you file your return to get all that money. Talk to your payroll manager about decreasing your tax withholding. While it'll decrease your refund, it'll boost your cash flow throughout the year.\n*   **Ask for a raise**: This isn't always easy, but if you've been working for your employer for a while and have proven yourself worthy of a pay increase, you may be successful.\n*   **Take on more work**: If your employer offers overtime and you can manage it, consider taking on extra hours to increase your take-home pay.\n*   **Look for other ways to make money**: If you have some extra time, consider other money-making ideas, such as selling off old household items, taking on side gigs through Craigslist and other job boards, or starting a business on your own.\nIncreasing your income significantly can take time, but it can be well worth the effort when you're trying to increase your net worth. END
 TITLE: How to Start Increasing Your Net Worth Today CONTENT: Learn to Budget and Save\n------------------------\nWhile your expenses aren't directly included in the net worth calculation, they are indirectly by how they affect your assets.\nBy budgeting each month and finding opportunities to save more money, you can increase your bank and investment account balances, which, in turn, affect your net worth. Take a look at your expenses over the past few months and put them into different buckets, including groceries, rent, utilities, entertainment and so forth.\nThen tally up how much you've spent recently in each of those categories. If you find that you're overspending in some discretionary categories, set a goal to spend less going forward and track your efforts to keep yourself accountable.\nMaking a budget can be as complicated or simple as you want it to be, so as you go through the process, determine what works best for you, as well as your spending habits and savings aspirations. END
 TITLE: How to Start Increasing Your Net Worth Today CONTENT: Boost Your Credit Score for a Higher Net Worth\n----------------------------------------------\nA higher credit score can make it easier to qualify for low interest rates, giving you more affordable loan options and saving you money on interest.\nAs you work to pay down your debt, your credit score may start improving automatically. Another way to accomplish the goal is to use Experian Boost™† , which incorporates your positive payment history on phone and utility bills into your FICO® Score☉ .\nTo take advantage of the service, you'll connect your bank accounts, and Experian will look for phone and utility payments to include. You'll verify which payments you want to be added to your credit file, and you'll see instant results.\nBetween this and the other steps, you can be on your way to a higher net worth in no time. END
 TITLE: Can I Get a Mortgage After Bankruptcy? CONTENT: How Bankruptcy Can Affect Your Ability to Get a Mortgage\n--------------------------------------------------------\nBankruptcy can significantly lower your credit scores, remain on your credit reports and affect your ability to obtain credit, including a mortgage loan, for up to 10 years. Fortunately, its impact lessens over time.\nFor a lender to even consider you for a mortgage after bankruptcy, your bankruptcy must be discharged. A bankruptcy discharge is a court order that eliminates your debts. In addition to making sure your bankruptcy has been discharged, a lender will look at your credit report to determine your creditworthiness.\nIt's a good idea to check your credit report before you apply for a home loan to make sure it's accurate. Look for mistakes such as incorrect or outdated information or accounts that were not included in your bankruptcy filing that are listed as part of it. Be sure to contact the credit agency as soon as possible and dispute any errors you find.\nWhen you do begin to apply for a mortgage after bankruptcy, your lender will likely ask you a few questions about your bankruptcy. They may ask you when your case was discharged, what you've done to establish new credit, and how you've been keeping up with your bills. It's a good idea to have the answers to these questions ready beforehand so that the application process runs smoothly.\nLet's dive deeper into how each type of bankruptcy can affect your ability to get approved for a mortgage.\n### Chapter 7: Liquidation\nWith a Chapter 7 bankruptcy, you'll have to sell your possessions to pay off credit card debt, medical bills, personal loans and other types of unsecured debts. Even though this type of bankruptcy will stay on your credit report for up to 10 years, you may still be able to get a mortgage. You'll need to wait until enough time has passed since your bankruptcy was discharged and make sure you have a substantial down payment and that you've worked on rebuilding your credit history. More on lender-required waiting periods below.\n### Chapter 11: Reorganization\nChapter 11 bankruptcy is typically used by businesses, but can be filed by individuals as well if they make too much money to qualify for a Chapter 7 filing or have more debt than is allowed in a Chapter 13 bankruptcy. Even for those who do qualify, Chapter 11 is complex and expensive, which is why consumers typically file Chapter 7 or Chapter 13. As long as you've waited long enough after your Chapter 11 bankruptcy has been discharged, you should be eligible to get a mortgage.\n### Chapter 13: Adjustment of Debts\nChapter 13 bankruptcy can give you the chance to repay all or some of your debts during a repayment period that typically lasts three to five years. The remainder of your debt will be discharged when your repayment period comes to an end.\nThis type of bankruptcy can stay on your credit report for up to seven years. To get a mortgage after Chapter 13 bankruptcy, you'll need to get permission from your bankruptcy trustee, the person who oversees your repayment plan to creditors. END
 TITLE: Can I Get a Mortgage After Bankruptcy? CONTENT: Types of Mortgage Loans to Consider After Bankruptcy\n----------------------------------------------------\nIf you want to try to get a mortgage after bankruptcy, you can research a number of different types of loans. Each mortgage loan has its own unique requirements for bankruptcy filers.\n### FHA Loans\nFederal Housing Administration (FHA) loans are managed by the federal government and may allow you to buy a house with a down payment that's as little as 3.5% of the purchase price. The downfall of FHA loans, however, is that you'll have to pay for mortgage insurance, which will result in higher monthly payments.\nTo get a mortgage after bankruptcy using an FHA loan, you'll have to adhere to these waiting periods:\n*   **Chapter 7**: Two years from your discharge date\n*   **Chapter 11**: No waiting period\n*   **Chapter 13**: One year from your discharge date\n### USDA Loans\nU.S. Department of Agriculture (USDA) loans are designed for rural borrowers who meet certain income requirements. It may be a good option if you'd like to buy a house in a rural area, have a low or modest income, and aren't eligible for a conventional loan. If you go this route, you may not have to put any money down and you may be able to secure a low interest rate.\nKeep these waiting requirements in mind if you're interested in getting a USDA mortgage after bankruptcy:\n*   **Chapter 7**: Three years from your discharge date\n*   **Chapter 11**: No waiting period\n*   **Chapter 13**: One year from your discharge date\n### VA Loans\nIf you're a veteran or currently serving in the military, you may be eligible for a Department of Veterans Affairs (VA) loan. A VA loan doesn't require a down payment or charge private mortgage insurance and can give you the chance to lock in a low interest rate. If you pursue a VA loan, however, you'll have to pay a funding fee, which will be a percentage of your home price.\nHere are the waiting requirements you should be aware of if you'd like to get a VA loan after bankruptcy:\n*   **Chapter 7**: Two years from your discharge date\n*   **Chapter 11**: No waiting period\n*   **Chapter 13**: One year from your discharge date\n### Conventional Loans\nSince conventional loans are not guaranteed or insured by government agencies, you can expect stricter requirements, such as having a good credit score, if you apply for one. If you get a conventional loan and put down less than 20% of the cost of your new home, you'll need to pay private mortgage insurance.\nThe waiting requirements for taking out a conventional loan after bankruptcy are as follows:\n*   **Chapter 7**: Four years from your discharge date\n*   **Chapter 11**: Four years from your discharge date\n*   **Chapter 13**: Two years from your discharge date or four years from your dismissal date END
 TITLE: Can I Get a Mortgage After Bankruptcy? CONTENT: How to Get Approved for a Mortgage After Bankruptcy\n---------------------------------------------------\nWith all of these types of loans, if your goal is to get approved for a mortgage after bankruptcy, it's a good idea to focus on rebuilding your credit before applying. By doing so, you may increase your chances of getting approved and landing more favorable terms. Here are some tips to help you rebuild your credit:\n*   **Create a budget**: Creating a budget involves calculating your expenses, determining your income, setting savings and debt payoff goals, and recording spending. A budget can help you stay on top of your spending and avoid getting into too much debt.\n*   **Pay your bills on time**: This may seem like a no-brainer, but paying your bills on time is one of the easiest ways to rebuild your credit. Consider automating your payments if you tend to forget when they're due.\n*   **Get a secured credit card**: A secured credit card is typically easy to get and can help your credit as long as you pay your bills on time and in full every month. Make sure the credit card company will report your payments to the credit bureaus (not all secured card issuers do) and show that you are a responsible borrower. END
 TITLE: Can I Get a Mortgage After Bankruptcy? CONTENT: Closing Thoughts\n----------------\nTaking out a mortgage is a large financial undertaking. If you'd like to get a mortgage after bankruptcy, take some time to rebuild your credit and improve your finances first. Once you're confident you can comfortably afford mortgage payments, taxes, and the various other costs associated with owning a home, you can begin your journey to homeownership. END
 TITLE: How to Budget for a Family CONTENT: Establish a Long-Term Budgeting Strategy\n----------------------------------------\nHow you choose to track your budget is up to you, but make sure whatever strategy you pick is sustainable for the long term. You can use an online budgeting tool like Quicken or Mint, or you can track all your finances in an Excel spreadsheet or even with a pen and paper. Budgeting can take some time to show results, so finding an accounting strategy you'll stick with is vital to success.\nOnce you've chosen a method, your budget should contain the following core elements:\n1.  Money coming in (all income sources)\n2.  Money going out (all bills)\n3.  Plans for saving and paying off debt\n4.  Allowance for emergencies and discretionary spending\n5.  Allocation for personal and family goals\nWhile each family's budget will differ, accounting for all five core spending categories will ensure you cover your financial bases and still have room for extra expenses as they arise.\nThe basics of budgeting are simple: First, calculate the money coming in each month; then calculate how much you have to pay for all your bills. Subtract your total monthly bills from your total monthly income, and distribute whatever you have left over to other spending categories, such as additional debt payment, savings, emergency fund, entertainment and so on. Make sure to clearly track how much you save in each category every month; that way you'll be able to spend according to what you have and not deviate from your budget. END
 TITLE: How to Budget for a Family CONTENT: Make a Plan for Paying Down Debt\n--------------------------------\nIt's not unusual to have a good portion of your monthly budget go toward tackling past and new debt. When calculating your budget, it's important to account for debt payments because getting behind on payments can hurt your credit and make achieving your financial goals significantly more difficult.\nWhen you sit down to figure out your budget, make sure you understand how much debt you and your partner have, and create a plan for paying it off. You can take an aggressive approach and pay a lot each month to slash your debt, or you can take a slower approach and pay the minimum so you can also focus on saving. Your current financial situation and how much extra income you have to work with each month will help determine which route you choose. But be aware that stretching debt payments out will cost you more in interest down the line. END
 TITLE: How to Budget for a Family CONTENT: Put an Emphasis on Saving\n-------------------------\nHaving kids can be expensive, and those costs aren't going away anytime soon. Many parents support their children through their college years, whether with food costs, housing or tuition. Putting an emphasis on saving money every month can help ensure that you're ready for these expenses when they come.\nThink about the possible expenses your children will have as they grow. These may include everything from braces to a first car to college tuition. Put a set amount of money in a designated place each month to work toward that goal. In the case of saving for college, consider funding a 529 plan from early in your child's life. END
 TITLE: How to Budget for a Family CONTENT: Plan for Emergencies\n--------------------\nFrom turbulence in your career to injuries, life can be unpredictable. It's important to be financially prepared when something comes up. That's why you need to make room for an emergency fund in your budget. This may help you avoid relying on costly financing if you or someone in your family ends up taking an unexpected trip to the hospital or if you get laid off from your job and need a little breathing room before you move into another position.\nNo matter what you ultimately use this money for, having some cash ready for an emergency can make dealing with difficult situations much easier and may even help you save some money on expensive last-minute spending. END
 TITLE: How to Budget for a Family CONTENT: Plan for Discretionary Spending\n-------------------------------\nBudgeting doesn't have to be restrictive, and as long as you plan for a few things you really want, you may be able to fit it alongside the rest of your monthly goals. Creating a discretionary spending category (or categories for a more precise budget) will help you account for those splurge purchases you inevitably make each month without letting it impact your overall goals.\nDiscretionary spending can apply to purchases that you want rather than need. These might include things like dinners out with the kids, date nights for you and your spouse, and any extra monthly purchases that may come up. END
 TITLE: How to Budget for a Family CONTENT: Set Family Goals to Reward Successful Budgeting\n-----------------------------------------------\nBudgeting helps you organize your household finances. You can also use it as a method to plan and save for things you want and need. Setting a family goal to work toward can make budgeting fun (yes, budgeting can be fun!) and can help you get some satisfaction when you achieve your milestone. For example, think about a shorter-term goal that you and your family would enjoy—maybe a vacation or house upgrade—and if you have extra money each month, put it aside until you reach your goal.\nIf you and your partner are ready to create a budget for your family, consider also getting a free copy of your Experian credit report and FICO® Score☉ to get a clear image of your current debt and credit. This will help you get all the cards out on the table when beginning the budgeting process. END
 TITLE: What Is Net Worth? CONTENT: Understanding Net Worth\n-----------------------\nYour net worth is a calculation that gives you a snapshot of where your finances stand at any given time. It essentially tells you how much you'd have if you sold everything you own. Doesn't sound practical? It's true that you're probably not going to sell off all your assets—but knowing what your net worth is can give you an idea about your financial health over time. That's because as you make sound financial decisions, your net worth ideally will increase. The flipside is true as well: If you increasingly get into debt as you get older, your net worth could plunge, leaving you in dire straits as you near retirement.\nTo understand net worth, you need to know what qualifies as an asset or a liability.\nYour assets include the money in your checking, savings and retirement accounts as well as items such as your home and car that you may sell for cash. They also include the cash value of life insurance policies (though not term life insurance), personal items such as jewelry and art, and the value of investment accounts you hold.\nYour liabilities are debts, or any amounts owed on a mortgage, car loan, credit card accounts, student loans, personal loans and the like. While your assets increase your net worth, your liabilities decrease it. END
 TITLE: What Is Net Worth? CONTENT: How to Determine Net Worth\n--------------------------\nCalculating your net worth is a fairly simple process that involves adding up all your assets and then subtracting your total liabilities. Follow these steps to calculate your net worth:\n### 1\\. Make a List of All Your Assets and Their Values\nWrite down all of your assets. As noted above, these include your current checking and savings balances, your retirement savings and anything you own that has value. If you own a house or car, use its current market value when adding up your assets.\nYou may know what some of your assets are worth and not others. For example, unless you appraised your house within the past few months, you may not know its exact value. In these situations, you can go with estimates: Use websites like Zillow and Trulia to find out the estimated value of your home, and Edmunds and Kelley Blue Book to estimate your vehicle's value.\nOnce you've listed all your assets and their actual or estimated values, add up the numbers and you'll know the total value of your assets.\n### 2\\. Make a List of All Your Liabilities and Their Values\nNext, list all of your liabilities. Include the balances on your student loans, mortgage, auto loan, personal loans and credit card accounts. Add up all the numbers and you'll have the total amount of all your liabilities.\n### 3\\. Subtract\nFinally, subtract your total liabilities from your total assets. The number you are left with is your net worth.\nIf the figure you calculated is negative, you owe more than you own. In the event it is positive, you own more than you owe. Of course, you should always strive for a positive net worth and make an effort to increase it as much as possible. END
 TITLE: What Is Net Worth? CONTENT: How Net Worth Impacts Credit\n----------------------------\nWhile your personal net worth may not directly impact your credit score, your assets and liabilities will play an important role in your creditworthiness. For example, if you apply for a mortgage, a bank may ask you to list your assets as well as your liabilities. If you have a negative or low net worth, you may not get approved.\nThe good news is there are ways you can increase your net worth.\nStrategies to Improve Your Net Worth\n------------------------------------\nIf you need to improve your net worth to get on stronger financial footing, try the following tips:\n*   **Pay down debt**. If you're carrying high credit card balances that are incurring steep interest charges, work on paying off your credit card debt. If possible, add extra principal payments to your mortgage payment every month. Your lender will likely allow you to make the extra payment automatically. You can choose the extra amount to add—even a couple hundred dollars a month can help quite a bit. Or make your mortgage payments bi-weekly. Both strategies take time off the life of your loan and reduce the interest you'll pay on the mortgage—all helping improve your net worth.\n*   **Increase your income**. Consider getting a side hustle—driving for a car-sharing service or doing consulting work—or renting out a room in your house. Any extra cash you can pour into savings or debt payments will boost your net worth.\n*   **Save more**. If you don't carry much debt, then consider adding extra to your savings every month. Whether upping your retirement savings or your emergency fund, extra savings will put you in a better position to improve your net worth—and ensure you don't get caught in a tough situation if you're hit with a large unexpected expense or worse, with not enough money to retire.\nImproving your net worth may give you the financial freedom to retire early or choose a career you love without worrying about money. Or it may give you the chance to pay cash for a new car or take a vacation every year without straining your budget. END
 TITLE: What Is Net Worth? CONTENT: The Bottom Line\n---------------\nYour net worth is a good indicator of how you're doing financially. It can motivate you to save and invest, spend wisely, and pay down debt. By calculating your net worth on a monthly or quarterly basis, you can make smarter financial decisions and meet (or even exceed) your long-term goals. END
 TITLE: Savings Goals for Age 30, 40 and 50 CONTENT: By Age 30: An Emergency Fund + Retirement Savings\n-------------------------------------------------\nIf you are just out of your 20s, you're probably about a decade into the workforce. Money might have been (and may still be) tight, especially if you're paying off student loan debt. Because of this, and perhaps other debts you might have racked up, you may not have begun contributing to a retirement account. That's OK—just be sure you start contributing now. More on saving for retirement below.\nBy age 30, you need a solid emergency savings fund.\nIdeally you will have three to six months' worth of expenses set aside. As an example, if your essential bills—which might include rent, utilities, transportation costs and groceries—total $3,500 a month, you'll want at least **$10,500** in a savings account. With that, you'll have enough cash to keep you afloat in case you lose your job and it takes a few months to regain employment. You can pull from this account for other necessary but unplanned expenses, too, such as uncovered medical bills or an essential car repair.\nIf other people are depending on you for their care, you'll want to have even more in savings. A good rule of thumb is one month's expenses for each dependant. So if you have a non-working spouse and a child, five months' worth of expenses saved would be ideal. With that same $3,500 figure, your emergency fund should be **$17,500**.\nIf you're nowhere near your own emergency fund goal and aren't sure how to get there, consider these top strategies for saving money. You may consolidate debt so you have extra money each month or use your tax refund to drop a chunk of cash into your emergency savings. You can also look at your daily, weekly and monthly expenses to find places to trim spending.\nOnce you've reached your emergency savings goal, you can stop adding to it and save for something for the longer term, like a home down payment. END
 TITLE: Savings Goals for Age 30, 40 and 50 CONTENT: By age 40: Retirement Savings + Child's College Fund + Adjusted Emergency Fund\n------------------------------------------------------------------------------\nBy now, you should be well into taking advantage of a tax-deferred retirement plan, such as a 401(k) or 403(b) if one is available to you through your employer. In 2019, you can contribute an annual sum of up to $19,000 in pre-tax income, and that maximum typically increases by $500 a year. If you consistently max out your contributions, you might have built up **$264,000** over those 10 years since turning 30, assuming a conservative 5% investment growth. These savings will be much higher if your employer matches a portion of your contributions and your investments did especially well.\nEven if you can't come close to maxing out your contributions due to your living expenses, experts recommend saving at least 15% of your earnings for retirement. The best way to do that is to set it and forget it by having your contributions taken out automatically each pay period. For more information on saving for retirement with a 401(k), see \"How Much Should I Contribute to My 401(k)?\"\nIf you have children, there's another important expense to save for, and that's your kids' higher education. If you want to pay for their tuition, plan to have between **$40,000** for an in-state public university to well over **$200,000** for private university tuition per child. Keep in mind, this is just for tuition. If you plan to pay for your child's college in its entirety, including living expenses, you'll need to save much more. A 529 Plan can help you save for it in a tax-advantaged way. For more on saving for your child's college, see \"How to Save Money for College.\"\nFinally, continue to maintain an emergency savings account, but adjust it for potentially higher expenses. For example, if you bought a home, your mortgage could be more than what your rent was. And maybe you have additional children. Whatever the case, your savings should reflect the reality of your current situation. Perhaps now you need $5,000 a month for six months—equaling a **$30,000** buffer. That might be a daunting amount, but if you're married or partnered up, two people could be contributing to the funds and sharing the same expenses, so achieving it may not be as hard as you think. END
 TITLE: Savings Goals for Age 30, 40 and 50 CONTENT: By age 50: Retirement Savings + Child's College Fund\n----------------------------------------------------\nAs long as you didn't waver in your retirement plan contributions, you should have amassed some serious dough by this point. With the same investment assumption noted above, nearly **$759,000** might be in your retirement account if you contributed the maximum for 20 years. That's a great goal to have in mind. Keep it up until you're 60 and you can probably count on more than **$1.5 million** to be in that account. Again, the amount will be significantly greater if your employer also added funds and your investment choices performed well.\nBecause more couples have children in their mid-30s and beyond these days, you may still be scrambling to boost their college funds. If you had children when you were younger, they may be out of high school—adding that money you were setting aside for college back into your budget.\nThe good news is your income is likely higher now, giving you more opportunity to sock away as much as possible for retirement, the college fund and the emergency fund (still important, and even possibly more so at this point)—while also ideally leaving you some extra money to travel, buy a new car, upgrade your kitchen or pay for other things you may want. If you've been using a rewards credit card and paying it off every month to avoid debt, you may have enough points to take a dream vacation without even touching your savings. END
 TITLE: Savings Goals for Age 30, 40 and 50 CONTENT: The Bottom Line\n---------------\nOf course there are no rigid financial rules, so don't panic if you're nowhere near these figures. They should simply serve as inspiring goalposts for where you might want to be when you reach certain age milestones. Now decide what personal net worth aspirations are right and feasible for you. Review your budget frequently and trim where you can, find ways to hike your earnings, steer clear of consumer debt and save aggressively. Do so, and you'll be prepared for most of what life will throw at you. END
 TITLE: Best Ways for Millennials to Pay Off Debt CONTENT: Know Who You Owe\n----------------\nYou may think you know who all of your creditors are, but to be sure, check your credit report. It will list all of your tradelines, from loans to credit cards. Collection agency accounts will show up too, and this is where you may be surprised. Some debts can fall through the cracks. For example, you might have had a dentist bill that you forgot about and it was sold to a collection agency. If the sum was small, the collector may not have even contacted you, but is still sending information about it to the credit reporting agencies. Take a deep breath and find out what's in your file.\nAlso review your most recent account statements to get your current balances. Starting with a knowledge of where your various forms of credit stand will help you attack your debt more efficiently. END
 TITLE: Best Ways for Millennials to Pay Off Debt CONTENT: Understand Your Cash Flow\n-------------------------\nThe word \"budget\" can be depressing, so think of it as \"cash flow\" because that's really what it's all about: the amount of money you have coming in and going out.\nList all of your monthly expenses such as rent, utilities, phone, gas, groceries and the like, tally them up, then subtract the total from your monthly net income. Whatever you have left over is what you should commit to your debt. If that number is insufficient, consider ways to hike it up:\n*   **Reduce expenses.** What can you live without or cut back? It might be possible to bundle your cable and internet for significant savings, eliminate a daily coffee purchase, or cancel a gym membership and do at-home workouts instead. It's up to you to identify areas in your cash flow that you can change so you will be in a better position to deal with your debt.\n*   **Increase income.** If you're already living close to the bone, focus on bringing more money into your life. Drive for a ride-sharing company on the weekends, tutor neighborhood kids in Spanish, take the early morning shift at a cafe. Stretch yourself.\nHave a payment goal in mind. Maybe you have $500 that can go toward your debt now, but you want to double it. Great. Figure out how you will add another $500 to your payoff plan. If you can reduce expenses and increase income simultaneously, you'll get ahead faster. END
 TITLE: Best Ways for Millennials to Pay Off Debt CONTENT: Prioritize Your Debts and Power Them Down\n-----------------------------------------\nOne strategy for paying off debt is to list your credit card and loan accounts by their interest rates, with the highest rate at the top. For example, let's say you have $1,000 to commit to debt payoff, and these are your accounts:\nAccount\nBalance\nInterest Rate\nMinimum payment\nPower payment\nCredit card 1\n$2,000\n29%\n$60\n$350\nCredit card 2\n$5,000\n21.99%\n$150\n$150\nPersonal loan\n$3,000\n12%\n$150\n$150\nStudent loan\n$20,000\n6.2%\n$350\n$350\nTotal $30,000\nTotal $710\nTotal $1,000\nSend the maximum amount to the account at the top of your list and the minimum to the others. Once the first reaches a zero balance, apply its payment to the next account on your list. In the scenario above, the balance on credit card 1 would be eliminated in seven months. Then you'd add its payment to credit card 2, sending $500 instead of $150. When that's done, the personal loan will get $650 until it's deleted. Eventually you'll send the entire $1,000 to your student loan until it, too, is paid off. It's a simple and efficient system—as long as you don't start charging on your credit cards again once they're paid off.\nBut what about the debts in collection? Unsatisfied collection accounts look bad on your credit reports and negatively impact credit scores because they're a clear indication that you didn't pay your bills. It's best to pay all these accounts in full, as soon as you can. A possible exception: If the accounts are nearly 7 years old, they will soon be deleted from your credit report. While some people just wait until those accounts drop off their file, just be aware that the statute of limitations for being sued can extend past that time frame, depending on the state you live in. Check with your state attorney general's office to learn the laws for your area. END
 TITLE: Best Ways for Millennials to Pay Off Debt CONTENT: Track With Technology\n---------------------\nThere are a multitude of excellent personal finance apps that you can upload to your phone or tablet, and most are free. These tools can help you design a personalized cash flow plan, track daily spending, manage your checking and savings accounts, and keep you up to date with your debt deletion goals.\nSelect the app you want and enter your information. Soon you'll get notices if you're spending more than you usually do, you'll get pinged when bills are due, and you'll receive alerts if suspicious activity on your accounts is detected. Many also offer customized money and credit tips.\nIf you'd rather not use an app, you can still do pretty much everything with your phone. You're probably relying on this technology anyway. According to a Jumio and Javelin Strategy & Research study, 47 percent of millennials have adopted mobile banking. Still, it requires dedication. The study found that a common reason millennials abandon mobile banking is that the process takes too long and remembering all the passwords is a pain. Don't be deterred! Wake up in the morning, check your balances, then plan your financial day. The more you know, the more in control of your money you will be.\nLastly, make a point to use credit products in constructive ways. They should enhance your life, not cause you stress or cost too much money. The simple strategy is to spend with your credit cards, but pay on time and in full every month so you don't carry over balances. Take out loans only when necessary and when you're certain you can handle the payments. Be that millennial who bucks the big-debt trend and proves to past and future generations that you're no slacker. END
 TITLE: Can I Buy a House If My Spouse Has Bad Credit? CONTENT: Joint vs. Single Applicant: Decide How to Apply\n-----------------------------------------------\nWhen you're applying for a mortgage with a significant other, you have the option to apply either individually as a single applicant or together as joint applicants. Why would you want to leave your spouse off the application? Lenders don't just average out your two credit scores or go with the highest one when evaluating your creditworthiness as a pair—they pay the most attention to the lowest credit score. If your credit is great but your spouse's isn't so hot, a joint mortgage application could be denied.\nLenders also look at your debt-to-income ratio (DTI), which compares the total amount you owe each month with how much you earn, when determining your eligibility for a mortgage. If your spouse has a significant amount of debt as compared with income and they're applying for the mortgage along with you, it might be denied. Even if your joint mortgage application is approved, your loved one's poor credit or high DTI could land you with a higher interest rate than if you'd applied alone. With a loan as large and as long as a mortgage, a higher interest rate can cost you tens of thousands of dollars or more over the life of the loan.\nHere's an example of how much of an impact your annual percentage rate (APR) can make. Say you're taking out a mortgage loan for $175,000. You have great credit so you apply by yourself, and you score an interest rate on a 30-year mortgage of 4%. If you take the full 30 years to pay it off, you'll spend $300,773 over the life of the loan. Now let's say you apply jointly with your spouse, who has less-than-stellar credit, and you get a higher interest rate of 4.5%. You'd pay $319,212 over the life of the loan—a difference of nearly $20,000.\nHowever, there's another factor to consider: Your income is analyzed by lenders as a way to determine whether you can afford repayments. If you have a high income or are the primary or only breadwinner, that might not be a problem. But if not, it might be worth the risk of including your partner on the application if you need their income to qualify for the loan. END
 TITLE: Can I Buy a House If My Spouse Has Bad Credit? CONTENT: Mortgage Options if Your Spouse Has Bad Credit\n----------------------------------------------\nIf your spouse has credit problems, don't fret just yet: There are a few things you might be able to do to get a mortgage with bad credit.\nLenders weigh criteria differently. Some put more emphasis on factors besides your credit score, such as DTI. If your spouse has a low debt-to-income ratio, it may help outweigh their credit problems.\nAnother tactic that could reduce the impact of their bad credit is making a larger down payment, which shows the lender you won't have to borrow as much. Also, many lenders offer programs for first-time homebuyers that tend to be more lenient with credit criteria. For example, many offer FHA loans, which are part of a government program that allows down payments as low as 3.5% and permits lower credit scores than conventional mortgages.\nSome lenders offer other types of first-time homebuyer mortgages, such as Fannie Mae's HomeReady Mortgage, which allows lower income and credit scores than on a typical mortgage. END
 TITLE: Can I Buy a House If My Spouse Has Bad Credit? CONTENT: Consider Improving Your Spouse's Poor Credit Before Applying\n------------------------------------------------------------\nIf you and your spouse are dead-set on applying for a mortgage together, you have another option if you're not in a rush: Spend some time working to improve your spouse's credit first. Here's how.\n*   **Review their credit report.** Start by getting a free credit report and making sure there aren't any errors that could be bringing down your spouse's credit scores. If there are any mistakes on the report, dispute the errors to get them removed.\n*   **Pay all bills on time.** Payment history is the most important factor in calculating credit scores, so make sure all of your bills are always paid on time. Even one missed payment can cause your scores to drop significantly.\n*   **Lower their credit utilization ratio.** Your credit utilization ratio shows lenders what percentage of your available credit you're using. If you have a ratio higher than 30%, your credit scores could drop. Keep your utilization below 30% or, ideally, below 10%.\n*   **Add them as an authorized user.** Another strategy for improving your spouse's credit is to add them as an authorized user to one or more of your credit cards. While not every credit card issuer reports authorized-user activity to the three main credit bureaus (Experian, TransUnion and Equifax), and not every score factors in authorized-user activity, some do. And if they do, when the primary account holder manages the account responsibly, the authorized user's credit can benefit from it.\nIf you want to pursue this option, first ask your credit card issuer if they report authorized-user activity to the credit bureaus to ensure your spouse's report would benefit from it. If so, and assuming you both make smart decisions with your card, your spouse's scores should begin to rise over time.\nIf your spouse's credit isn't so hot, applying for a mortgage jointly could make it harder for you to qualify. But if you need your spouse on the application to meet income requirements, there are mortgage options for bad credit—or you can spend some time working on improving their credit before you apply. END
 TITLE: Checklist of Documents You’ll Need for a Mortgage CONTENT: Income and Assets\n-----------------\nThis section of the application demonstrates your ability to repay your loan. Your lender will zero in on your past and current job situation, including how long you've been at your job, and will likely verify your answers with your employers. Beyond that, you may be asked how long you've been working in your industry. Whether you work for an employer or for yourself, most lenders will want to see steady income for a minimum of two years.\nYour gross monthly income is an important number. This represents your earnings before taxes and other deductions are taken out. While your pay stubs and W-2s may reflect this, you may also be asked to provide bank statements to substantiate any other incoming funds—especially large amounts. This is to ensure that you aren't borrowing money for your down payment. If you are, this amount will count toward your debts. (More on this shortly.) If money is being gifted to you, the person providing it will have to complete and sign a gift letter supplied by the lender.\nIf you're retired or living on passive income, you'll still need to demonstrate that your income is reliable. Be ready to provide proof of retirement account balances, Social Security documentation and any paperwork related to annuities or pensions that you draw on for income. This includes any income generated by rental properties, capital gains and dividend stocks.\n### Documents You'll Likely Need\nFor all borrowers listed on application:\n*   Recent pay stubs\n*   W-2 forms from the past two years\n*   If self-employed:\n    *   Year-to-date profit and loss statement\n    *   Documents to show unpaid accounts receivable\n*   1099 forms from past two years\n*   Bank statements for all your checking and savings accounts\n*   Statements for all investment accounts, including:\n    *   401(k)s\n    *   IRAs\n    *   CDs\n    *   Brokerage accounts\n*   Accumulated cash value from life insurance, if applicable\n*   Down payment gift letters, if applicable\n*   Alimony and child support, if applicable\n*   If you have income from a rental property:\n    *   Documentation of rental income\n    *   Copy of lease\n    *   Property appraisal report END
 TITLE: Checklist of Documents You’ll Need for a Mortgage CONTENT: Spending, Expenses and Debts\n----------------------------\nOn top of your income, your lender will also want to understand your financial liabilities. After all your bills are paid, how much is left over each month to put toward a new mortgage payment? You'll be asked to list out all of your debts, as well as expenses like child support and alimony you may provide.\n### Documents You'll Likely Need\nFor all borrowers listed on application:\n*   The company name, account type, account number, unpaid balance and monthly payment for all liabilities, which include:\n    *   Credit cards\n    *   Student loans\n    *   Personal loans\n    *   Auto loans\n    *   Medical bills\n*   Any paperwork that documents monthly child support or alimony you provide\n*   Proof of monthly job-related expenses, if applicable END
 TITLE: Checklist of Documents You’ll Need for a Mortgage CONTENT: Miscellaneous Documents\n-----------------------\nMortgage lenders care most about your financial health, but they'll also want to verify other important details. Having the following documents ready to go can expedite your application process.\n### Documents You'll Likely Need\nFor all borrowers listed on application:\n*   Copy of your driver's license\n*   Copy of your Social Security card\n*   Rental history, including contact information for previous landlords\n*   Immigration paperwork, if applicable\n*   If you own another property, you'll need to provide the:\n    *   Address\n    *   Property value\n    *   Status of property\n    *   Intended occupancy (the purpose of the property, such as a second home, rental property or investment property)\n    *   Monthly expenses related to property\n*   If you own a property with an outstanding mortgage, you'll also need to provide the:\n    *   Lender name and account number\n    *   Type of loan\n    *   Monthly payment amount\n    *   Unpaid balance on the loan\n    *   Credit limit, if applicable END
 TITLE: Checklist of Documents You’ll Need for a Mortgage CONTENT: Credit\n------\nYou won't need to provide your own credit reports or credit scores when applying for a mortgage (your lender will pull those themselves). However, going over them before submitting any mortgage applications is vital because it clues you into what potential lenders will see. You can get a free copy of your credit report from all three consumer credit bureaus at AnnualCreditReport.com. You can also check your credit report and credit score for free with Experian. Doing so allows you to get ahead of any potential roadblocks in your path. These may include:\n*   Past-due accounts\n*   High account balances\n*   Fraudulent activity or information you believe to be inaccurate\nIn some instances, your mortgage lender may ask you to provide a letter of explanation. This document gives you the opportunity to expand further on areas of your mortgage application that raise red flags for the lender—like credit issues. If there are any derogatory marks on your credit report, your letter of explanation may quell their worries. Now is the time to briefly explain what happened and when, hopefully providing reassurance that the issues are behind you.\nOne problem may be a lack of credit history. If you have a thin credit file (few credit accounts on your credit report), your lender may suggest an FHA loan over a conventional loan. FHA loans, which are backed by the federal government, allow for credit scores as low as 580 with a down payment of 3.5%. If you can put down 10%, you may be able to qualify with a credit score of 500. For a conventional loan, the minimum credit score is typically 620. END
 TITLE: Checklist of Documents You’ll Need for a Mortgage CONTENT: The Bottom Line\n---------------\nYou'll probably need to gather up a variety of supporting documents when applying for a home loan. On top of that, it's helpful to have access to the type of FICO® Scores☉ that mortgage lenders generally use—something that's available with Experian CreditWorks℠ Premium. You may ultimately find you're better off waiting and taking the time to improve your credit before you submit any mortgage applications. Taking this route could open the door to better loan terms and lower interest rates. END
 TITLE: Should I Buy Life Insurance or Stocks? CONTENT: How Does a Life Insurance Policy Work?\n--------------------------------------\nWith a life insurance policy, you make regular premium payments to an insurer to keep it active. Should you pass away while covered, your beneficiaries will then receive a payout called a death benefit. Policy terms and levels of coverage vary, but you may be able to add extra protections and flexibility with optional life insurance riders.\nLife insurance is structured in the following ways:\n*   **Term life insurance**: Coverage lasts for a predetermined amount of time, typically anywhere from one year to 30 years. Premiums usually stay the same for the life of the policy. Your coverage expires when your term ends, though you may choose to renew your policy (usually at a much higher cost). There is no cash value other than the death benefit your survivors receive when you pass away.\n*   **Whole life insurance**: This type of _permanent life insurance_ lasts for your entire life, as long as you keep up premium payments. Premiums tend to be higher with this type of policy, but it will accumulate a cash value in an account that works similarly to a savings account. It can provide financial peace of mind—and a source of guaranteed income in retirement.\n*   **Universal life insurance**: Another form of permanent life insurance, universal coverage also accumulates cash value. But unlike whole life insurance, which has fixed premiums, a universal policy offers more flexibility. Your premium amount, payment amount and death benefit can all be adjusted during your coverage period.\nWith permanent life insurance, you can usually access the accumulated cash value of your life insurance policy via a loan, or by withdrawing funds and reducing your death benefit. Alternatively, you could surrender your policy and receive a lump sum of cash, though you may be charged a fee depending on how long you've had the policy. Either way, your cash value will grow on a tax-deferred basis: You won't be taxed on any gains until you withdraw funds. END
 TITLE: Should I Buy Life Insurance or Stocks? CONTENT: How Does Investing in Stocks Work?\n----------------------------------\nWhen you're ready to start investing, you can buy and sell individual stocks on exchanges like Nasdaq and the New York Stock Exchange. Stock prices tend to go up and down—and your investment reacts in kind. Stock investing is riskier than \"safer\" financial products like certificates of deposit or bonds, but the return on investment is historically better over time.\nIf you'd rather not pick individual stocks, you can invest in mutual funds or ETFs instead. Mutual funds are collections of investments that are managed professionally. With a mutual fund, the investor owns small shares across a variety of assets. Certain funds mirror a market index like the S&P 500, for example. ETFs are structured similarly, but they are often managed passively.\nThere's also the option of going with a robo-advisor, which is an automated investment service that takes the reins of your stock investment decisions. Equipped with knowledge of your goals and risk tolerance, a robo-advisor uses computer algorithms to analyze stock performance and make investment decisions for you.\nWhenever you invest, it's important to keep in mind that your investment returns—called capital gains—are taxable. The amount you owe will depend on how long you've owned the stock, as well as your income. Your marital and tax-filing status also come into play. END
 TITLE: Should I Buy Life Insurance or Stocks? CONTENT: When It Makes More Sense to Buy Life Insurance\n----------------------------------------------\nIf you're paying off high-interest debt, lack an emergency fund, or are dealing with income insecurity, paying premiums for a life insurance policy may strain your budget. However, you may want to consider life insurance if any of the following situations apply to you:\n*   **You have a family.** Term life insurance costs less than a whole life policy; even more so if you're young and generally healthy. If you're looking to provide your family with a safety net should the unthinkable happen, a term policy might be an affordable option. The average monthly premium for a 20-year, $500,000 policy for a healthy 35-year-old male costs about $30, according to Policygenius.\n*   **You're conservative with your money.** Those who have their financial ducks in a row might like the idea of accumulating a cash value in a permanent life insurance policy. It offers a way to create a pool of money you can draw on if necessary—or leave to your beneficiaries. END
 TITLE: Should I Buy Life Insurance or Stocks? CONTENT: When It Makes More Sense to Invest in Stocks\n--------------------------------------------\nLike anything else, stock investing has its benefits and drawbacks. It might be right for you if:\n*   **You've got a high tolerance for risk.** There's no such thing as a guarantee when investing in stocks. Company performance and economic conditions, among other things, can all influence stock prices. Stocks are inherently risky because there's no protection against loss, and market volatility is par for the course, particularly in the short term.\n*   **You're after a better return on your investment.** Portfolios consisting of 60% stocks and 40% bonds have produced an average annualized return of around 10% over the past decade, according to investment research company Morningstar. That doesn't guarantee future performance, but with that kind of average return, it's an investment worth considering.\nIf you're contributing to a 401(k), you're already investing in stocks (typically in the form of mutual funds or ETFs). Before you open a separate brokerage account or try your hand at day trading, however, it's wise to first make sure you're on solid financial ground. This means:\n*   You manage your monthly budget with ease.\n*   Your credit card debt is minimal.\n*   Your emergency fund is going strong.\n*   You've started saving for retirement.\nYou may not have to choose between buying life insurance and investing. The two can play different but equally important roles in your long-term financial plan. No matter what, you'll want to establish a strong financial foundation. This goes hand in hand with your credit. Checking your credit score and credit report with Experian is fast, easy—and free. END
 TITLE: What Are Mortgage Overlays? CONTENT: What Is a Mortgage Overlay?\n---------------------------\nFederal guidelines specify criteria borrowers must meet to qualify for home loans, but lenders are free to go a step further by implementing tougher guidelines known as mortgage overlays to decrease the likelihood that borrowers will default on their home loan.\nThese additional rules can be applied to Fannie Mae and Freddie Mac conventional loans as well as government-backed mortgage loans, including FHA, USDA and VA loans.\nMortgage overlays are sometimes prompted by unstable market conditions that increase risk to the lender. They can also result from red flags in your financial profile, the property type or the loan type you're considering.\nGenerally, you will know if you are subject to mortgage overlays when applying for a home loan. Here are examples of mortgage overlays that could affect you:\n*   **Debt-to-income ratio (DTI)**: Conventional loans typically have a maximum back-end DTI (the sum of all your monthly debt payments divided by your monthly gross income) of 43%, but some lenders require a lower DTI than that.\n*   **Credit history**: Lenders want reassurance that you can responsibly manage your debts, and thus sometimes require a minimum number of credit accounts and years of experience to qualify for a mortgage.\n*   **Employment history**: Applicants with minimal or shaky employment histories may not qualify for a home loan even if they meet other requirements.\n*   **Credit score**: Federal guidelines state you can qualify for an FHA loan with a 580 credit score and 3.5% down payment (or score as low as 500 with a down payment of 10%). Still, many lenders that issue FHA loans only consider applicants with credit scores of 620 or higher. Conventional loans are available with credit scores of 620, but some lenders set the minimum score at 640 or higher. USDA loans don't have a federally required minimum credit score, but most lenders require a score of at least 640.\n*   **Property type**: Some lenders restrict the types of property eligible for a mortgage.\n*   **Bankruptcy**: Consumers with discharged bankruptcies can qualify for home loans per federal guidelines. However, most lenders have overlays that require a waiting period of one or two years.\n*   **Down payments**: Select conventional mortgages require a down payment of 3%, but lenders don't always follow suit. In fact, some won't approve the loan unless you bring 5% or even 10% to the table. Some lenders restrict or disallow the use of gift funds, which is money you put toward a down payment that was given to you as a gift.\n*   **Cash reserves**: Federal mortgage guidelines generally require a few months of reserves to qualify for a home loan, but some lenders won't approve borrowers with less than six months' worth of mortgage payments stashed away.\n*   **Collections and charge-offs**: FHA guidelines do not require collections and charge-offs to be paid in full to qualify for a home loan, but some lenders have overlays that prevent applicants with unsettled or unpaid delinquent accounts from qualifying. END
 TITLE: What Are Mortgage Overlays? CONTENT: Can You Avoid Mortgage Overlays?\n--------------------------------\nYou can potentially avoid overlays by shopping around with different lenders. Some lenders don't have overlays that would disqualify you from borrowing, or your financial profile may be strong enough to avoid them with other lenders.\nIf you find a lender you like, they may be willing to remove certain overlays in exchange for a higher interest rate or larger down payment.\nStill no luck? Consider returning to the drawing board to improve your credit and overall financial health before trying again at a later date. END
 TITLE: What Are Mortgage Overlays? CONTENT: How to Prepare Your Credit for a Mortgage\n-----------------------------------------\nThe first step in getting your credit ready for a mortgage is to check your credit, so you know where you stand. You can get a copy of your credit report for free from all three bureaus—Experian, TransUnion and Equifax—from AnnualCreditReport.com. You can also get your Experian credit report and FICO® Score☉ for free from Experian.\nReview your credit reports and note areas that need improvement. If you spot information you believe to be incorrect or outdated, promptly contact the appropriate creditor or file a dispute with the credit bureaus.\nHere are some other suggestions to prepare your credit for a mortgage:\n*   **Pay all your bills on time.** Payment history accounts for 35% of your FICO® Score, so just one missed payment could mean bad news for your credit score. Lenders could also see you as a riskier borrower and charge you a higher interest rate as a result.\n*   **Get current on past-due debts.** Delinquent accounts can ding your credit score each month you don't bring them current. If possible, pay off collection accounts and charge-offs as it could be tougher to get a mortgage if these accounts remain unpaid.\n*   **Lower your credit card balances to reduce your** **credit utilization rate****.** Approximately 30% of your FICO® Score is determined by the amounts you owe on your accounts, and how your revolving account balances compare with your credit limits (your credit utilization) is the primary factor. The lower your credit utilization, the better, but aim to at least keep your credit usage below 30%, as this is the point where its effect on your credit becomes more severe.\n*   **Don't apply for new credit.** Each new application creates a hard inquiry, which could temporarily lower your score by a few points. One or two credit inquiries almost certainly won't be enough to significantly alter your creditworthiness, but they could make a difference if your score is right on the edge of a scoring range.\nIf you've recently been denied a mortgage, reach out to the lender to learn why your application wasn't approved. The loan officer may be able to provide insights to help you resolve any issues causing overlays to be applied to your file. END
 TITLE: What Is SNAP and How Do You Apply? CONTENT: SNAP was designed to give struggling families additional financial support to buy foods eligible for purchase under the program. Eligible families receive funds via a debit card that can be used to pay for purchases at retailers authorized to receive SNAP payments.\nSNAP benefits are distributed on a state-by-state basis, and may differ depending on where you live, but three key benefits are available to eligible recipients regardless of your locale:\n1.  **Financial resources:** SNAP provides financial help to families who may find themselves needing to make the choice between purchasing healthy food and paying for necessities such as utilities or gas.\n2.  **Nutritional support and education:** Resources related to healthy eating are available through SNAP. There is an emphasis on connecting recipients with tools to learn how to make healthy choices when feeding themselves and their family.\n3.  **Disaster Supplemental Assistance Program benefits:** These are provided to families dealing with the aftermath of a disaster.\nTo help families deal with the effects of the COVID-19 crisis, SNAP also expanded its benefit amounts, scope of support and resources for the families in the program. END
 TITLE: What Is SNAP and How Do You Apply? CONTENT: Who Is Eligible for SNAP?\n-------------------------\nWhile SNAP applications are submitted and approved by state-run programs, such as CalFresh in California, eligibility is mandated by federal rules. For a recipient to qualify for the program, they need to meet these minimum eligibility requirements:\n*   An applicant's net income must not exceed the federal poverty level for the size of the family applying for the benefit. As of 2021, this means an after-tax monthly income of no more than $2,184 for a family of four in the contiguous 48 states, Guam, Virgin Islands and Washington, D.C. Alaska and Hawaii have higher income limits. Before you apply, be sure to review details specific to your state's requirements.\n*   If your family has assets of value, the cumulative amount of those assets must be below a specific threshold. As of 2021, the federal limit on assets means recipients can have no more than $2,250 in cash savings. For households where at least one person is 60 years of age or older or disabled, this limit is $3,500. Certain assets don't count toward this limit, such as your home's value or retirement savings. END
 TITLE: What Is SNAP and How Do You Apply? CONTENT: How to Apply for SNAP\n---------------------\nApplicants will need to research their state's specific SNAP application process and eligibility requirements. Applicants should be prepared to provide proof of income and other documentation that the state's SNAP office may require in order to prove eligibility.\nOnce an applicant has been approved for SNAP, benefits will be distributed to an electronic benefit card that can be used to purchase approved items at stores that participate in the SNAP program. Each state uses its own discretion in deciding what foods are approved for purchase. END
 TITLE: What Is SNAP and How Do You Apply? CONTENT: Additional Food Assistance Programs\n-----------------------------------\nIf you're in need of additional food resource assistance, there are numerous other programs that may provide the help that you need. Below is a short list of the different types of programs currently in existence on the local and national levels in the United States.\n*   The Women, Infants, and Children food assistance program (WIC) provides nutritional assistance to women and children dealing with food instability related issues.\n*   The National School Lunch Program provides food assistance to school-aged children.\n*   The School Breakfast Program allows children who meet the threshold for food-related assistance to be served breakfast before school begins.\n*   Food Distribution Program on Indian Reservations (FDPIR) provides nutritional benefits to individuals living on reservation lands approved for participation in this program within the U.S.\n*   Local programs developed in your town and region. These programs may include local food pantry programs, community refrigerator programs and food rescue programs that redistribute food that would otherwise go to waste.\n*   Credit counseling services and additional financial assistance services such as rent assistance, free legal aid and help with student loans or medical bills.\nIf you are looking for access to food-related resources and support, know that you're not alone. There are numerous organizations and individuals focused on connecting families in need with the support that they need during difficult times. END
 TITLE: Can a Collection Agency Sell Your Debt? CONTENT: What Are Debt Collectors Not Allowed to Do?\n-------------------------------------------\nWhen a debt collector is trying to collect money from you, such as delinquent debt from credit cards, medical bills or auto loans, the Fair Debt Collection Practices Act (FDCPA) is in your corner. The federal law prevents a debt collector from:\n*   Contacting you before 8 a.m. or after 9 p.m. unless you let them.\n*   Reaching out to you at work if you're not allowed to be contacted there.\n*   Discussing your debt with anyone except you and your spouse, or an attorney representing you. A debt collector can, however, contact other people to obtain your phone number, address or workplace information.\n*   Harassing you. This includes hurling profanity at you or constantly bugging you by phone.\n*   Lying about details of your debt, such as misinforming you about how much money you owe or falsely claiming you're going to be arrested.\n*   Engaging in unfair practices, such as depositing a post-dated check ahead of time.\nWhen a debt collector violates the FDCPA, you can take the collector to court. If the court rules in your favor, you may receive monetary damages, repayment of legal fees and more.\nA statute of limitations governs how long negative information about debt in collections stays on your credit report. Under the FDCPA, a negative mark related to uncollected debt can remain on your credit report for seven years from the time the debt first became delinquent.\nThere's another debt-related statute of limitations to consider. This one restricts the window of time during which a lender or debt collector can sue you in an attempt to recover money from you. The statute of limitations varies from state to state, but it's generally three to six years. END
 TITLE: Can a Collection Agency Sell Your Debt? CONTENT: Can a Collection Agency Report Old Debt as New?\n-----------------------------------------------\nIf a collection agency has been unable to recover money from you, it can resell the debt to another collection agency. However, the debt will retain the original date of the delinquency. Therefore, the collection agency cannot report old debt as new debt.\nLet's say the original delinquency date occurred in 2018 but the debt was resold in 2019. In that scenario, the original delinquency date would remain in 2018, not 2019. Even though the debt was sold a year after the account first became delinquent, the amount of time that this negative item appears on your credit report is not extended. END
 TITLE: Can a Collection Agency Sell Your Debt? CONTENT: How to Deal With Accounts in Collections\n----------------------------------------\nDo you have an account in collections? If so, don't panic—but don't ignore the debt, either. Here are four tips for dealing with an account in collections:\n1.  Request that the debt collector stop contacting you. Under federal law, a debt collector typically must stop contacting you once you ask them to do so in writing. After your written request is received, a debt collector can only reach out to say you won't be contacted any longer or that you're being taken to court.\n2.  Consider negotiating the debt. Believe it or not, debt collectors may agree to a lump-sum payment to settle the debt, or may work out a repayment plan with you. Ask what options are available to you.\n3.  Figure out who gets the money. Before you pay a penny, be certain about who will get the debt payments. If the original lender is trying to collect the money, then your payments go to them. But if a debt collector is working on behalf of the lender or your debt has been sold to another debt collector, you'll make payments to the appropriate collector.\n4.  Weigh whether to hire an attorney. If you and the debt collector can't resolve the situation, and especially if the debt collector threatens to sue you, you may want to enlist legal help. END
 TITLE: How Do Home Construction Loans Work? CONTENT: What Is a Home Construction Loan?\n---------------------------------\nA home construction loan enables you to pay the costs associated with building a home and to buy the land for the home. The builder, not the borrower, usually receives the money through several advances paid throughout the construction process.\nWhile the home is being built, the only payments you must make go toward the interest. Full payments of the home construction loan start six to 24 months after you take out the loan.\nA home construction loan typically carries stiffer requirements than a traditional mortgage loan. Why? Because when you buy a home, the lender can seize the property as collateral if you fall behind on payments. But if you take out a home construction loan, there's no collateral to take possession of until the home is built. Therefore, a lender assumes more risk when it signs off on a home construction loan.\nRequirements for a home construction loan may include:\n*   Solid credit score.\n*   20% down payment.\n*   Substantial amount of savings.\n*   Low debt-to-income ratio. This compares your monthly debt obligations with the amount of money you earn.\n*   Signed contract with licensed builder.\n*   Detailed construction plans. The lender may ask for information factors such as the home size, the lot size and the construction materials.\nOnce the term of the home construction loan ends (normally after 12 months), you must either pay off the entire balance or obtain a traditional mortgage to cover the balance. A mortgage usually comes with a 15-year or 30-year payoff period. END
 TITLE: How Do Home Construction Loans Work? CONTENT: Types of Home Construction Loans\n--------------------------------\nFive types of home construction loans are available. They are:\n1.  Construction-to-permanent loan: This loan mixes construction financing with conventional mortgage financing. Once the home is completed, the loan switches from a construction loan to a mortgage loan.\n2.  End loan: With this type of loan, the builder pays for construction of a home, and the buyer takes out a mortgage to purchase the home directly from the builder.\n3.  Owner-builder construction loan: Are you a homebuilding guru? If so, you may want to explore an owner-builder construction loan. With this type of loan, you serve as the general contractor rather than hiring one.\n4.  Renovation loan: To pay for a major home overhaul or a home addition, a renovation loan may be an option. This sort of loan lets you borrow against the predicted value of your renovated home.\n5.  Construction-only loan: Most lenders no longer provide this kind of loan. A construction-only loan covers construction costs and must be paid off when the term of the loan expires. Otherwise, the borrower must obtain permanent financing.\nHow and Where to Get a Home Construction Loan\n---------------------------------------------\nTo qualify for a home construction loan, you'll generally need a credit score of at least 620 (although the higher, the better), a debt-to-income ratio of up to 45%, proof of your ability to pay off the loan, a down payment covering 20% to 25% of the construction costs, a signed contract with a licensed and insured builder, an appraisal of the value of the land and completed home, and a complete blueprint for the project.\nBanks, credit unions and mortgage lenders are among the places where you can obtain a home construction loan. You might start by comparing interest rates, closing costs and other loan aspects at lenders in the area where your home will be built. In doing so, remember that you may want to take out the initial construction loan and the permanent loan at the same lender to make things more convenient.  \nThings to Consider Before Applying for a Home Construction Loan\n---------------------------------------------------------------\nIf you decide to apply for a home construction loan, ask these four questions:\n1.  Is your debt-to-income ratio low enough to qualify for the loan? If it's not, work toward reducing your debt or bumping up your income to improve it.\n2.  Do you have enough money set aside for a down payment? If not, begin saving up to make at least a 20% down payment.\n3.  Where does your credit score stand? If your credit score is below 620, focus on reducing debt and paying bills on time to raise your score.\n4.  Do you have all of the necessary paperwork? A lender may want to see pay stubs, tax returns, bank statements and other financial documents before approving your application for a home construction loan.\nBottom Line\n-----------\nBefore you go ahead with an application for a home construction loan, check your free credit report from Experian to ensure your credit is in the best shape possible so you can score a low interest rate. END
 TITLE: How Do Home Construction Loans Work? CONTENT: How and Where to Get a Home Construction Loan\n---------------------------------------------\nTo qualify for a home construction loan, you'll generally need a credit score of at least 620 (although the higher, the better), a debt-to-income ratio of up to 45%, proof of your ability to pay off the loan, a down payment covering 20% to 25% of the construction costs, a signed contract with a licensed and insured builder, an appraisal of the value of the land and completed home, and a complete blueprint for the project.\nBanks, credit unions and mortgage lenders are among the places where you can obtain a home construction loan. You might start by comparing interest rates, closing costs and other loan aspects at lenders in the area where your home will be built. In doing so, remember that you may want to take out the initial construction loan and the permanent loan at the same lender to make things more convenient. END
 TITLE: How Do Home Construction Loans Work? CONTENT: Things to Consider Before Applying for a Home Construction Loan\n---------------------------------------------------------------\nIf you decide to apply for a home construction loan, ask these four questions:\n1.  Is your debt-to-income ratio low enough to qualify for the loan? If it's not, work toward reducing your debt or bumping up your income to improve it.\n2.  Do you have enough money set aside for a down payment? If not, begin saving up to make at least a 20% down payment.\n3.  Where does your credit score stand? If your credit score is below 620, focus on reducing debt and paying bills on time to raise your score.\n4.  Do you have all of the necessary paperwork? A lender may want to see pay stubs, tax returns, bank statements and other financial documents before approving your application for a home construction loan. END
 TITLE: What Is a Uniform Residential Loan Application? CONTENT: Nearly all mortgage lenders in the U.S. use the URLA when issuing a loan for a single-family home. When you're seeking a mortgage to purchase a home, a lender will likely ask you to fill out this application twice—once when you initially apply and again when you agree to the terms of the loan. You may be able to complete the application in a digital or paper format.\nThe application is known as Fannie Mae Form 1003 or Freddie Mac Form 65. Fannie Mae and Freddie Mac are government-sponsored companies that buy and sell home loans, freeing money for lenders to extend more loans to homebuyers.\nWhen filling out this application, you'll be asked to supply an array of personal information, including your Social Security number, date of birth, marital status, address, monthly income, work history, assets and liabilities.\nLenders in the U.S. have used the URLA for more than 20 years. END
 TITLE: What Is a Uniform Residential Loan Application? CONTENT: New Changes to Uniform Residential Loan Applications in 2021\n------------------------------------------------------------\nFannie Mae and Freddie Mac updated the URLA earlier this year. The new application is reformatted to make it more consumer-friendly and to further digitize the mortgage process. Among the changes are a cleaner design, better organization and clearer instructions.\nThe new nine-page application asks for more information than the previous application did. The pieces of information that an applicant now must provide include:\n*   Mobile phone number\n*   Email address\n*   History of military service\n*   Current housing expenses\nThe redesign of the form doesn't change the application process for the borrower or lender. After May 1, 2021, Fannie Mae's and Freddie Mac's automated systems stopped accepting mortgage applications submitted on older forms. END
 TITLE: What Is an EMV Chip? CONTENT: How EMV Chip Cards Work\n-----------------------\nEMV chips transmit data just as magnetic strips on cards transmit data. However, payment terminals don't read EMV chips the same way they read magnetic strips.\nA card with an EMV chip typically must be inserted into the slot of a payment terminal, which then reads the chip's data and verifies the card as authentic. You then must wait for the purchase to be authorized. This process is known as \"dipping.\"\nBy contrast, making a purchase by sliding a card with a magnetic strip through a card reader is called \"swiping.\" The magnetic strip also transmits data that enables authorization of a purchase and verification of a card. A swiped transaction may be a bit quicker than a dipped transaction, but it's not quite as secure.\nOne key difference between an EMV card and a magnetic strip card is that the EMV card produces a unique code for each transaction but the magnetic strip does not. As such, it's harder for fraudsters to steal data to produce counterfeit cards. That's why merchants and card issuers prefer EMV transactions, even though they are more complicated than magnetic strip transactions.\nMost cards in the U.S. depend on chip-and-signature capabilities. In this type of transaction, a cardholder must provide a signature to complete a transaction. Outside the U.S., chip-and-PIN transactions are more common. In these transactions, a cardholder enters a four-digit PIN to validate a payment. Chip-and-PIN transactions are considered more secure than chip-and-signature transactions.\nAnother way to use an EMV card is as a contactless payment method. If the card has this capability, you can tap it on a payment terminal or wave it near the terminal to complete the transaction. A contactless transaction doesn't require a PIN. END
 TITLE: What Is an EMV Chip? CONTENT: What if a Merchant Doesn't Accept EMV Cards?\n--------------------------------------------\nEMV chip cards still come with magnetic strips, so you should be able to use an EMV card even if a merchant doesn't have the equipment required for EMV transactions.\nYou also may be able to use a digital wallet. Some apps store credit card information electronically, letting you pull up a digital card on a smartphone and tap the phone on a payment terminal to complete a transaction. END
 TITLE: What Is an EMV Chip? CONTENT: Watch Out for EMV Chip Scams\n----------------------------\nWhile EMV chip cards have helped slash payment fraud, they haven't stopped crooks from committing card-related crimes. Today, thieves are targeting EMV cards through a scam known as \"card shimming.\"\nEmploying this technique, a scammer inserts a thin device called a shim into a card reader that accepts EMV cards. This device copies and stores data from your card. A scammer can't produce another chip card with this information—however, they can produce a magnetic strip card with the data stolen from the EMV card.\nTo avoid being victimized by an EMV chip scam, take advantage of mobile payment apps or contactless tap-and-go functions when you're making a transaction. END
 TITLE: What Is an EMV Chip? CONTENT: The Bottom Line\n---------------\nTo head off problems that may arise when credit card information or other personal information is compromised, enroll in free credit monitoring from Experian to help you quickly detect potential fraud. If you suspect you've been the victim of an EMV chip scam, contact your card issuer right away to report it. Checking your free Experian credit report can also alert you to suspicious activity related to your credit. END
 TITLE: How to Donate to Charity with Credit Card Rewards CONTENT: Various credit card issuers make it simple to donate rewards to charity. Here's a rundown.\n### American Express\nAmerican Express lets cardholders donate to registered U.S. nonprofit organizations through its partnership with JustGiving.\nTo participate, you must have a valid American Express consumer card, American Express OPEN business card or American Express corporate card, and must be authorized to use points. The card must be enrolled in Amex's membership rewards program. Only one-time donations are eligible.\nAfter you create an account at JustGiving and enter your Amex card information, you'll be shown the available number of Amex points and the associated dollar value for donating through JustGiving. You'll then enter the dollar amount to receive in the form of a statement credit and click \"Apply to my donation.\" JustGiving deducts processing and transaction fees from the donation.\n### Chase\nThrough the Pay Yourself Back feature, holders of Chase Sapphire Preferred® Card, Chase Sapphire Reserve®, Chase Freedom Flex℠, Chase Freedom Unlimited®, Chase Ink Business Preferred® and Chase Ink Plus® cards can redeem Ultimate Rewards points as a statement credit to cover charitable donations.\nEligible charities are the American Red Cross, Equal Justice Initiative, Feeding America, Habitat for Humanity, International Medical Corps, Leadership Conference Education Fund, NAACP Legal Defense and Educational Fund, National Urban League, Thurgood Marshall College Fund, United Negro College Fund, United Way and World Central Kitchen.\n### Citi\nCiti's ThankYou Rewards program enables cardholders to convert points into contributions to seven charities: American Red Cross Disaster Relief, American Red Cross International Services, No Kid Hungry, Smile Train, UNICEF Kid Power, UNICEF USA and World Central Kitchen. Contributions of 2,500 points or more are allowed.\nDonations may be made only in amounts of $25, $50 or $100. Once you redeem ThankYou Points for a designated charity, Citi mails a check for that amount to the charity.\n### Discover\nDiscover cardholders can donate their Cashback Bonus rewards to any of 10 charities: American Cancer Society, American Society for the Prevention of Cruelty to Animals (ASPCA), American Red Cross, Carbonfund.org, Children's Miracle Network Hospitals, Junior Achievement, Juvenile Diabetes Research Foundation, Make-A-Wish Foundation, Operation Homefront and World Wildlife Fund. END
 TITLE: How to Donate to Charity with Credit Card Rewards CONTENT: Co-branded Airline and Hotel Cards\n----------------------------------\nCredit cards affiliated with airlines and hotels require slightly different redemptions for charity—you must go through the brand's loyalty program to turn airline miles or hotel points into charitable donations.\nHere are links to an array of airline and hotel loyalty programs so you can learn more about how they let members donate miles or points to charity.\n*   **Alaska Air****:** Miles can be donated to Alaska Airlines' disaster relief and youth initiatives, Angel Flight West, Dream Foundation, Fred Hutchinson Cancer Research Foundation, Fisher House Foundation, Make-A-Wish Foundation, Medical Teams International, National Forest Foundation, The Nature Conservancy, Seattle Children's Hospital and United Negro College Fund.\n*   **American Airlines****:** American Airlines miles can be donated to charities in five categories: social good, global health and well-being, heroes (organizations benefiting veterans, military members and their families) and planet (organizations that protect natural resources and combat climate change).\n*   **Delta****:** Miles accumulated by Delta customers can be donated to 15 charities, including the American Red Cross, Breast Cancer Research Foundation, Children's Miracle Network Hospitals, Habitat for Humanity, Fisher House Foundation, Junior Achievement, St. Jude Children's Research Hospital and Salvation Army.\n*   **Hawaiian Airlines****:** Charities able to accept donations of Hawaiian Airlines miles fall into four categories: culture, education, environment, and health and human services.\n*   **JetBlue****:** Twenty-two charities benefit from donation of TrueBlue points, including American Red Cross, Americares, Autism Speaks, Carbonfund.org, DoSomething.org and World Central Kitchen.\n*   **Southwest****:** Seven charities participate in Southwest's Points for a Purpose program: Hispanic Heritage Foundation, Honor Flight Network, Polaris, Ronald McDonald House Charities, Student Conservation Association, Team Rubicon and United Negro College Fund.\n*   **United Airlines****:** United's charity partners include Americares, Clean the World, Dream Foundation and Guide Dogs of America.\n*   **Choice Privileges****:** Choice Privilege points can be converted to donations for the American Red Cross, Boys & Girls Clubs of America, Executive Leadership Council, Franchising Gives Back, Fisher House Foundation, Operation Homefront, Polaris and the Stay Home, Send Beds initiative.\n*   **Hilton HHonors****:** The Hilton HHonors program supports 30 charities, including the American Indian College Fund, Arthritis Foundation, DonorsChoose.org, National Coalition for the Homeless, National Multiple Sclerosis Society, Special Olympics and World Vision.\n*   **IHG Rewards Club****:** Charities that can receive conversions of IHG rewards points include the American Red Cross, Goodwill and National Center for Civil and Human Rights.\n*   **Marriott Bonvoy****:** Marriott points can be donated to 31 charities, such as the Arbor Day Foundation, International Rescue Committee, NAACP and National Urban League.\n*   **Wyndham Rewards****:** The 12 charities that can benefit from donations of Wyndham rewards include Armed Services YMCA, Jack & Jill Late Stage Cancer Foundation, Save the Children and Starlight Children's Foundation. END
 TITLE: How to Donate to Charity with Credit Card Rewards CONTENT: The Bottom Line\n---------------\nIf you're eager to obtain a credit card whose benefits include conversion of rewards to charitable contributions, be sure to check your free Experian credit report and credit score first so you can get your finances in tip-top shape and be better positioned to qualify for the best terms. END
 TITLE: Are Annuities a Good Investment? CONTENT: What Is an Annuity?\n-------------------\nPeople typically buy annuities to provide a source of income during retirement. Annuity payments can be made to the issuer in one lump sum or over a certain period of time. Likewise, payments from an annuity can be made in one lump sum or over a certain period of time.\nAnnuities are sold by insurance companies, banks, brokerage firms and mutual fund companies. They fall into three buckets. END
 TITLE: Are Annuities a Good Investment? CONTENT: Pros and Cons of Annuities\n--------------------------\nPros and cons accompany any investment product for retirement, and annuities are no exception.\nHere are five of the pros of annuities.\n1.  An annuity may lend a sense of financial security, particularly for those who are near retirement and are nervous about volatility in the stock market.\n2.  Interest earned on an annuity can grow on a tax-deferred basis.\n3.  As opposed to a 401(k) or an IRA, an annuity usually comes with no annual contribution limits.\n4.  Unlike traditional retirement accounts, you're not required to start withdrawing money from an annuity at age 70½.\n5.  Generally, your designated beneficiaries can get payouts from your annuity after you die even if you haven't withdrawn any money.\nHere are five of the cons of annuities.\n1.  The issuer of an annuity may charge various fees, such as a flat annual fee or a percentage fee to cover administrative expenses.\n2.  Some annuity fees are higher than fees for other retirement options.\n3.  If you withdraw money from an annuity before age 59½, the IRS may impose a 10% penalty. That would come on top of any federal taxes you might owe on the money that's withdrawn.\n4.  Unlike money in savings accounts, annuities are not federally insured. Therefore, if the insurer that issued your annuity goes out of business, neither the Federal Deposit Insurance Corp. (FDIC) nor the National Credit Union Administration (NCUA) can come to your rescue. Also, annuities also often lack the consumer protections provided by the Securities Investor Protection Corp. (SIPC). SIPC helps protect investors' assets when a brokerage firm fails.\n5.  If you need to tap into an annuity to cover big expenses, such as an unexpected hospital bill, you may not be able to withdraw the money as quickly as you'd like. Plus, you may face penalties for early cash withdrawal. END
 TITLE: Are Annuities a Good Investment? CONTENT: Does It Make Sense to Add an Annuity to Your Retirement Portfolio?\n------------------------------------------------------------------\nAn annuity may make sense if you continually max out your annual contributions to a 401(k), IRA or other retirement account, as an annuity can give you another avenue for retirement savings. It also may be a good move if you're approaching retirement and seeking another source of steady income.\nBecause there are different types of annuities that invest and pay out your funds in various ways, make sure you understand what you're getting into before you purchase an annuity. In addition, don't forget that an annuity may charge fees that wind up being higher than those for a 401(k) or another retirement product. END
 TITLE: Are Annuities a Good Investment? CONTENT: When Might an Annuity Be Right for You?\n---------------------------------------\nAn annuity can enable you to build tax-deferred retirement savings and generate long-term income. However, you must weigh those benefits against the downsides. Those include any fees attached to an annuity and the likelihood that your annuity doesn't enjoy the same consumer protections that savings and retirement accounts do.\nBefore deciding to purchase an annuity, assess your current retirement portfolio. If you already have an IRA or another retirement account that provides tax-deferred savings, then you might consider buying an annuity only if it delivers different advantages. Those advantages may include guaranteed income or guaranteed death benefits. END
 TITLE: How Do Fannie Mae and Freddie Mac Loans Work? CONTENT: Fannie Mae, or the Federal National Mortgage Association, buys conventional loans from big banks. Fannie Mae requires those banks to follow certain guidelines for lending money to homebuyers. These guidelines help ensure that Fannie Mae can sell these loans to investors. They include:\n*   Debt-to-income ratio up to 50%\n*   Credit score of at least 620\n*   Down payment of at least 3% of the home's purchase price—the 3% payment applies to HomeReady loans, geared to buyers who have low income or have limited cash for a down payment\n*   Private mortgage insurance (PMI) is typically required when down payment is less than 20% of home purchase price END
 TITLE: How Do Fannie Mae and Freddie Mac Loans Work? CONTENT: How Do Freddie Mac Loans Work?\n------------------------------\nFreddie Mac, or the Federal Home Loan Mortgage Corporation, buys conventional loans from small banks. These are the guidelines that Freddie Mac establish for loans:\n*   Debt-to-income ratio up to 45%, although 33% to 36% is recommended\n*   Credit score of at least 620\n*   Down payment as low as 3% of purchase price for HomeOne loans, geared toward first-time buyers, and as low as 3% for Home Possible loans, designed for people such as first-time buyers, low-income borrowers and retirees\n*   PMI typically required when the homebuyer puts down less than 20% of home's purchase price END
 TITLE: How Do Fannie Mae and Freddie Mac Loans Work? CONTENT: Why Do Fannie Mae and Freddie Mac Loans Exist?\n----------------------------------------------\nFannie Mae and Freddie Mac were both created by Congress. And while they don't lend directly to homebuyers, they still play an important role in financing home loans. By purchasing mortgages and selling them to investors, Fannie Mae and Freddie Mac free up cash for banks, mortgage companies and other lenders to finance home purchases. This also helps keep down interest rates and stabilizes the lending market.\nFannie Mae was established in 1938 and Freddie Mac in 1970. They're structured so that the federal government guarantees they won't default on their debt.\nAmid the COVID-19 pandemic, American homeowners with Fannie Mae or Freddie Mac loans have been able to take advantage of potential financial relief if they were struggling to make their mortgage payments. Relief options include reduction of monthly payments or creation of a repayment plan. END
 TITLE: How Do Fannie Mae and Freddie Mac Loans Work? CONTENT: Alternatives to Fannie Mae and Freddie Mac Loans\n------------------------------------------------\nIf a Fannie Mae- or Freddie Mac-conforming loan doesn't work out, you do have other options. Here are four of them.\n1.  FHA loans: FHA loans, backed by the Federal Housing Administration (FHA), offer low down payment options (at least 3.5%) and low minimum credit score requirements (as low as 500 if you can provide a 10% down payment).\n2.  VA loans: VA loans, backed by the U.S. Department of Veterans Affairs, are available to active-duty members of the military, military veterans and surviving spouses.\n3.  USDA loans: Mortgage loans offered through the U.S. Department of Agriculture (USDA) are designed for low- and moderate-income borrowers in rural areas.\n4.  Jumbo loans: A jumbo mortgage exceeds the borrowing limits set by Fannie Mae and Freddie Mac for a conventional loan. In most of the U.S., the borrowing limit for 2021 is $548,250. In high-cost regions, the limit for 2021 is $822,375. END
 TITLE: How Do Pay Over Time Plans Work? CONTENT: What Is Pay Over Time?\n----------------------\nA pay over time plan allows you to finance large purchases (typically at least $100) on your card. In some cases, you may be charged a fixed fee instead of interest on balances. In other cases, you may be charged interest and fees when you carry a balance.\nCredit cards normally charge an interest rate when you carry a balance from one month to the next—about 16% on average as of February 2021, according to the Federal Reserve.\nPay over time plans are available from major card issuers such as American Express and Chase. The Amex options allow you to carry a balance (with interest), while the Chase option offers fixed monthly payments that could help you better manage your budget. END
 TITLE: How Do Pay Over Time Plans Work? CONTENT: American Express Pay Over Time\n------------------------------\nThe American Express Pay Over Time option enables cardholders to pay off charges over time rather than being required to pay off the balance each month. Some purchases aren't eligible for Pay Over Time, however, including insurance premiums, gift cards and gambling transactions.\nAs you make purchases with your Amex card, qualifying charges of $100 or more are placed into your Pay Over Time balance up to your Pay Over Time limit. When you make a payment at the end of your billing period, you can pay the statement balance in full, or pay the minimum amount due or any amount in between with interest. You'll pay interest only on charges you choose to pay over time. The Pay Over Time feature is also available on eligible Amex business cards.\nIf you don't want to use Pay Over Time, you can pay your statement balance in full each month, or you can switch off the feature by managing the settings within your mobile app or online account, or by calling Amex.\nThere's no time limit for wiping out a Pay Over Time balance, as long as you make at least the minimum payment by each monthly due date. Your Pay Over Time APR (annual percentage rate) can vary based on your creditworthiness. Terms apply. END
 TITLE: How Do Pay Over Time Plans Work? CONTENT: American Express Pay It Plan It\n-------------------------------\nAmex's Pay It Plan It program provides two ways to pay off purchases.\nThe Pay It feature lets an eligible Amex cardholder reduce their balance by making small payments throughout the month via the Amex app. You can use this option by selecting any posted transaction that shows the Pay It icon. You can use Pay It to make as many as five payments per day.\nMeanwhile, Plan It enables an eligible Amex cardholder to divide purchase amounts of at least $100 into monthly payments for a fixed monthly fee without paying interest. You can designate up to 10 purchases to be included in Plan It. Items not eligible for Plan It include Amex membership fees and purchases with foreign transaction fees.\nYou may not be able to shift a purchase to Plan It if:\n*   Your plan balance would exceed 95% of your account's total new balance on your last billing statement.\n*   Your plan balance would exceed 95% of your credit limit.\n*   You would exceed your Pay Over Time limit.\nFor a consumer card with a credit limit, your Plan It fee is a percentage of each purchase amount based, in part, on the APR that would otherwise apply to the purchase. For Plan It purchases, you'll be charged the plan fee each month instead of interest.\nFor a consumer card with purchases included in a Pay Over Time balance, the monthly fee is a percentage of each purchase amount based, in part, on the APR that would otherwise apply to the purchase and the duration of the payment plan.\nFor purchase amounts on a consumer card that are included in a Pay In Full balance, the monthly fee is a percentage of each purchase amount based, in part, on the APR that applies to the Pay Over Time feature at the time you create the plan and the duration of the payment plan. Terms apply.\nAmex business cards are not eligible for the Pay It Plan It program. END
 TITLE: How Do Pay Over Time Plans Work? CONTENT: My Chase Plan\n-------------\nThe My Chase Plan lets you pay off a purchase over time in fixed, equal monthly payments. A My Chase Plan purchase will be charged a fixed monthly fee but no interest. Chase determines the fee based on factors such as the original purchase amount and the number of billing cycles you choose to pay off the purchase.\nEligible purchases must be at least $100. Some transactions don't qualify for My Chase Plan, such as balance transfers, cash advances and membership fees.\nYou can have up to 10 \"plans\" at one time. Each plan can last anywhere from three to 18 months, depending on your creditworthiness and account history. END
 TITLE: How Do Pay Over Time Plans Work? CONTENT: Alternative Financing Options\n-----------------------------\nIf you're not sold on pay over time plans, you've got other options for financing purchases. They include:\n*   **0% introductory APR card**: With a 0% intro APR card, you can make a purchase and avoid paying interest if you pay off the balance in full before the 0% introductory period ends. Once a card's intro APR period ends, the card's higher ongoing rate will kick in and apply to any remaining balance. Many cards feature introductory periods of 15 or 18 months.\n*   **Personal loan**: Personal loans typically carry interest rates much lower than the rates for credit cards. With a personal loan, you make fixed payments over a set period of time until the loan is paid off. Personal loans normally don't require collateral. END
 TITLE: What Happens if You Can’t Make Mortgage Payments During a Recession? CONTENT: What to Do if You Can't Pay Your Mortgage\n-----------------------------------------\nIf you find yourself unable to make your mortgage payments, your first step should be to contact your mortgage servicer or lender. The companies that manage mortgages are aware that life can throw curveballs and are often willing to work with borrowers to avoid late payments and foreclosure.\nThe sooner you can reach out to your lender, the better; you may have more options in front of you if there's some time left before your payment's due. Depending on your situation and the policies offered by the servicer or lender, mortgage relief options might include:\n*   **Forbearance**: This happens when a mortgage lender or servicer suspends or reduces your mortgage payments for a certain period of time while you get your finances back in order. Keep in mind that those payments won't be wiped out completely and you'll be required to catch up with your payments at some point in the future. Under the Coronavirus Aid, Relief and Economic Security (CARES) Act of 2020 and subsequent extensions, you can receive up to 18 months of forbearance if you've suffered financially because of the coronavirus pandemic, as long as you have a federally backed mortgage. If you don't have a federally backed mortgage, your mortgage company still might be able to provide forbearance.\n*   **Foreclosure relief**: In some situations, a mortgage lender or servicer might be prohibited from foreclosing on your home. For instance, foreclosures are banned through June 30, 2021, for homeowners with federally backed mortgages who were financially hurt by the coronavirus pandemic. Check with your mortgage servicer or lender about its foreclosure rules. END
 TITLE: What Happens if You Can’t Make Mortgage Payments During a Recession? CONTENT: Consider Refinancing Your Mortgage if You Have Good Credit\n----------------------------------------------------------\nIf you aren't able to arrange some sort of forbearance, but still have good credit, you might ease your financial situation by refinancing your mortgage. Mortgage interest rates tend to fall during times of recession, which means refinancing could net you a lower monthly payment that makes it easier to meet your financial obligations.\nYou stand a better chance of your application being approved if you've got good credit. In general, that'll require a credit score of at least 620 for a conventional mortgage refinance. However, some government programs lower the minimum score to 580, or don't require a minimum score at all.\nOther factors a lender will consider when you apply for a mortgage refinance loan include:\n*   Your credit score and credit history\n*   Current debts\n*   The payment history on your current loan\n*   Your income and employment history END
 TITLE: What Happens if You Can’t Make Mortgage Payments During a Recession? CONTENT: Build a Budget and Consider Adjusting Your Spending Habits\n----------------------------------------------------------\nWhen you're juggling various financial worries during an economic downturn like a recession, it can be easy to overlook the need to create a household budget. But a budget can help you better navigate rough economic waters and can point you in the right direction when it comes to adjusting your spending habits.\nFortunately, it's pretty simple to set up a budget. Whether you use old-fashioned paper and pencil, a spreadsheet or a budget app, coming up with a budget enables you to:\n*   Examine your income and expenses\n*   Set financial goals (like saving money for retirement)\n*   Track and trim your spending\nPerhaps harder than creating a budget is sticking to it and adjusting your finances accordingly. Having a budget is all well and good, but if you're consistently blowing past your spending goals it's not going to help you make a difference in your savings. At the end of every month, compare your expenses with your budget and make the necessary hard decisions it'll take to cut back, or look for ways to increase your income. END
 TITLE: What Is a Corporate Credit Card? CONTENT: How Do Corporate Cards Work?\n----------------------------\nRequirements vary from card issuer to card issuer, but a business will typically have to meet the following preconditions to qualify for a corporate credit card:\n*   A minimum yearly revenue\n*   A minimum in annual charges\n*   A minimum number of employees\n*   Valid registration as an LLC, S corporation or C corporation\nTo get a corporate credit card, a business typically must have a good credit score, and must provide its tax ID number, supply tax information and go through a financial audit.\nIf a business doesn't meet the requirements for a corporate card, it can apply for a business credit card as an alternative. Businesses of all sizes can qualify for one of these cards, including startups and one-person ventures.\nA big benefit of a corporate card is that it can help a business keep a lid on costs. That's because a corporate card enables a business to closely control and monitor spending. For instance, the business can restrict how much money is spent per transaction and can prevent a card from being used at certain places. The business can even set different spending limits for, say, top executives and department managers.\nThe name of the business and the individual cardholder appear on a corporate credit card. Each individual card has its own number, but they're all attached to a single corporate card account. END
 TITLE: What Is a Corporate Credit Card? CONTENT: Can a Corporate Card Affect Your Personal Credit?\n-------------------------------------------------\nA corporate card might affect your personal credit, but the effect often is minimal.\nTypically, payment history, balances and other account details are attached to the credit report belonging to the business, not the individual cardholder.\nIf the card issuer checks your credit report, it may result in a hard inquiry, which can cause your credit scores to dip slightly. This score impact is usually small and temporary. If the card features what's known as individual liability, the cardholder is responsible for paying monthly bills, then getting reimbursed for those expenses.\nAlso, if debt on a corporate card is overdue, it may show up on the credit report of an individual cardholder. This could happen if the card comes with individual liability or joint liability (which is when both the employer and employee are on the hook for the debt). END
 TITLE: What Is a Corporate Credit Card? CONTENT: Best Corporate Cards for Business Owners\n----------------------------------------\nA number of options are available if you want to get a corporate card. They include:\n*   **American Express**: This financial giant offers four types of corporate cards: Corporate Green Card, Corporate Gold Card, Corporate Platinum Card® and Business Extra® Corporate Card. Annual fees can be as high as $550. Perks include reward points for the company or an individual cardholder, or cash back through statement credits. Terms apply.\n*   **Brex**: Brex's corporate cards require no personal liability guarantees and charge no fees. Benefits include up to 8 points per dollar for spending on rideshare trips, 4 points per dollar spent on restaurant meals and 3 points per dollar spent on software subscriptions.\n*   **Divvy**: Divvy's corporate card program charges no fees, enables every employee to carry a card, offers unlimited creation of virtual cards and integrates with Divvy's expense management software.\n*   **Stripe**: Stripe's corporate card charges no annual fees, foreign transaction fees or late fees. Every business purchase earns 1.5% cash back that's automatically credited to each monthly bill. END
 TITLE: What Is a Conservatorship? CONTENT: How Does a Conservatorship Work?\n--------------------------------\nA judge can establish a conservatorship after a relative, friend or public official requests the appointment of someone to manage the financial or personal affairs of an adult who's no longer able to do so. A conservatorship request must spell out why the adult is unable to handle their finances or personal care.\nThe judge assigns an investigator to interview the adult (known as the conservatee) who would fall under the conservatorship. Based on the interview, the investigator determines whether the person is actually incapicated and whether a conservator should be named, then shares their opinion with the court.\nOnce the judge receives the investigator's report, they schedule a hearing on the conservatorship request. Relatives and others with an interest in the case will be notified of the hearing and may be called to testify. Unless the potential conservatee is medically prohibited from doing so, they must appear at the hearing.\nWith the request, investigator's report, court testimony and court evidence in hand, the judge decides whether a conservatorship is needed and what powers the conservator should be given. If the conservatorship is approved, a court-designated monitor regularly checks in with the conservator and conservatee.\nWhile they may sound similar, conservatorship and guardianship don't have the same definition. In many states, a conservator controls a person's financial affairs, while a guardian manages day-to-day non-monetary matters. Other states define a conservator as someone who cares for an incapicated adult, whereas a guardian looks after a child. A guardian and conservator can be the same person or different people. END
 TITLE: What Is a Conservatorship? CONTENT: Responsibilities of a Conservator\n---------------------------------\nA court-appointed conservator holds broad powers over an adult's financial and personal matters. Responsibilities of a conservator may include:\n*   Protecting the conservatee's assets.\n*   Reporting to the court and the conservatee about how the assets are being managed.\n*   Creating the conservatee's budget.\n*   Collecting their income.\n*   Paying their bills.\n*   Investing their money.\n*   Choosing where they will live.\n*   Arranging for health care, personal care and other day-to-day needs of the conservatee.\n*   Obtaining court approval for certain decisions about health care and living arrangements.\nA conservator is a fiduciary, meaning they must always act in the best interest of the conservatee. A judge can penalize a conservator who isn't properly carrying out their fiduciary duties. A conservator who fails to act in the best interest of the conservatee, such as spending conservatorship money for unauthorized purposes, may be removed from that role or be held liable for financial harm. If relatives or other interested parties believe a conservator isn't upholding their fiduciary responsibilities, they could sue the conservator.\nAs a conversator, you're not allowed to:\n*   Pay yourself or an attorney without court permission. If approved by the court, a family member who acts as a conservator can receive an hourly fee for work done on behalf of the conservatorship. Likewise, a professional conservator can be paid from money in the conservatee's estate.\n*   Combine the conservatee's assets with their own assets.\n*   Borrow money from the conservatorship.\n*   Lend money from the conservatorship to another person.\n*   Make risky investments with the conservatorship's money. END
 TITLE: What Is a Conservatorship? CONTENT: Types of Conservatorships\n-------------------------\nNot all conservatorships are the same. Here are the different types of conservatorships.\n*   **General conservatorship**: A general conservatorship covers an adult who can't take care of their finances or themselves. Oftentimes, this kind of conservatorship applies to elderly people, such as those with Alzheimer's disease. It also may include people affected by conditions like stroke, coma and mental illness.\n*   **Limited conservatorship**: Through this arrangement, similar to a general conservatorship, a conservator oversees the finances and care of an adult with developmental disabilities.\n*   **Financial conservatorship**: Under a financial conservatorship, a judge appoints a person or entity to oversee financial matters for someone who's determined to be incapicated.\n*   **Physical conservatorship**: A physical conservatorship enables someone to make health care decisions on behalf of a conservatee, and take care of needs such as food, clothing and housing.\n*   **Permanent conservatorship**: A permanent conservatorship typically protects a person who has experienced a severe decline in physical or mental capabilities. Normally, the conservatee in this situation suffers from permanently impaired mental functions due to conditions like Alzheimer's disease and dementia.\n*   **Temporary conservatorship**: A temporary conservatorship aims to protect people in jeopardy of doing harm to themselves or others. It allows a conservator to assume control of a person's health care and financial decisions on a short-term basis.\n*   **Individual conservatorship**: Under an individual conservatorship, one person or a group of people takes care of a conservatee's needs.\n*   **Organizational conservatorship**: This type of conservatorship is common in the business world, enabling a group or company to keep another group or company out of financial trouble. END
 TITLE: What Is a Conservatorship? CONTENT: How to Establish a Conservatorship\n----------------------------------\nTo start the process of setting up a conservatorship, someone concerned about the welfare of a potential conservatee must file a petition with the court. This typically happens when a loved one lacks the ability to make their own decisions.\nA judge then weighs evidence, such as court testimony, to determine whether the person in question is incapacitated and therefore needs a conservator to watch after their finances and other matters. END
 TITLE: What Is a Conservatorship? CONTENT: Alternatives to Conservatorship\n-------------------------------\nA conservatorship isn't the only route available for protecting someone who needs help handling their finances and other personal affairs. Alternatives to conservatorship may include:\n*   **Power of attorney**: A power of attorney is a legal document that lets you designate someone to handle your finances or health care if you're unable to do so. Unlike a conservatorship, power of attorney must be assigned before someone becomes incapacitated.\n*   **Trust**: A living trust is a legal arrangement that allows somebody you name as a trustee to control your assets, including bank accounts.\n*   **Advance care directive**: This legal document lets you select the kind of health care you want if you become seriously ill and choose who will make these decisions on your behalf.\n*   **Daily money management program**: A number of social service agencies offer programs to assist people with basic financial tasks such as depositing money into bank accounts and paying bills.\n*   **Joint bank account**: You can open a joint bank account with a trusted person who can deposit or withdraw money, or can write checks for you if you're unable to easily handle financial matters.\nFor more information about conservatorships, check out the websites of the National Association to Stop Guardianship Abuse, American Disability Association and Alzheimer's Association. END
 TITLE: What Is a Conservatorship? CONTENT: Freezing the Credit of Vulnerable People\n----------------------------------------\nIf you're a conservator or guardian or you hold power of attorney, you can freeze the credit file of that person to help safeguard their finances. A freeze can prevent credit or loans from being approved for a person covered by a conservatorship, guardianship or power of attorney. This is just one way you can shield a vulnerable person from financial harm. END
 TITLE: Do Retirement Accounts Affect Your Taxes? CONTENT: Traditional IRA\n---------------\nThe main thing to keep in mind if you're doing your taxes and have a traditional IRA is the tax breaks for contributions.\nIf you (or your spouse) are not covered by a retirement plan at work, you can take a full tax deduction on contributions made to a traditional IRA. The deduction amount depends on what's known as your modified adjusted gross income (MAGI). MAGI refers to your taxable income subtracted by certain deductions you're allowed to take.\nThe tax deductions you can claim for contributions to a traditional IRA may be limited if you (or your spouse) are covered by a retirement plan at work.\nFor 2020 and 2021, the amount you can contribute to all of your traditional and Roth IRAs can't exceed $6,000 if you're under 50 or $7,000 if you're over 50.\nFor the 2020 tax year, you can take the full deduction for your contribution limit if you're single and covered by a workplace retirement plan as long as your MAGI is less than $65,000. A partial deduction is possible if you make more than $65,000 but less than $75,000. Deductions for U.S. consumers in other groups, such as married couples, also depend on income.\nIf you're not covered by a workplace retirement plan and you're single, a head of household or a qualified widow or widower, you can take a full tax deduction up to your contribution limit no matter what your MAGI is. The same holds true if you're married and filing a joint return, and your spouse is also not covered by a workplace retirement plan. For married couples where one spouse is covered by a workplace plan, the deductions depend on their income.\nWhat about taxes on early withdrawals from a traditional IRA? If you're under 59½, you may be hit with a 10% IRS penalty for an early withdrawal, except in certain circumstances. For example, you may not be penalized if you withdraw money for a first-time home purchase. END
 TITLE: Do Retirement Accounts Affect Your Taxes? CONTENT: Roth IRA\n--------\nContributions to a Roth IRA are made on a post-tax basis and don't qualify for tax deductions. However, your earnings grow tax-free, and qualified withdrawals aren't subject to taxes or penalties. You may also be able to escape a 10% tax penalty for withdrawing money before you turn 59½ and before the account is five years old if, for instance, you're applying the money to a first-time home purchase. END
 TITLE: Do Retirement Accounts Affect Your Taxes? CONTENT: 401(k)\n------\nContributions made to an employer-sponsored 401(k) retirement plan aren't counted as part of your taxable income. As such, they aren't eligible for tax deductions.\nNormally, withdrawing money from a 401(k) before age 59½ results in a 10% tax penalty on the amount taken out. The IRS permits some exceptions to the penalty. For example, you can avoid the penalty if you withdraw money after becoming totally and permanently disabled. You can make penalty-free withdrawals from a 401(k) after you turn 59½.\nYou will, however, have to pay taxes on the withdrawals you make from a traditional 401(k) just as though they were normal income. You'll report the income on your 1040 form when filing taxes. Withdrawing from a Roth 401(k) works differently, though, since you've already paid taxes on the money you deposited into the account. END
 TITLE: Do Retirement Accounts Affect Your Taxes? CONTENT: Traditional Pension Plan\n------------------------\nGenerally, contributions to a traditional pension plan are tax-free. If you have an employer-sponsored pension plan, you may be required to pay a 10% penalty on your federal tax return if you take out money before 59½. Exceptions include withdrawals made when you become totally and permanently disabled.\nOnce you retire, you'll typically pay federal income tax on monthly pension payments or a lump-sum pension payment. However, the sponsor of the pension plan normally withholds taxes when it sends pension checks, meaning at least some of your tax burden should be reduced.\nBy the way, 14 states don't tax pension payments—including Florida, Texas and Illinois—but the rest do. END
 TITLE: Do Retirement Accounts Affect Your Taxes? CONTENT: Tax Credit for Retirement Contributions\n---------------------------------------\nFor contributions made to an IRA or employer-sponsored retirement plan, you may qualify for a tax credit known as the Saver's Credit. You're eligible for the credit if you are:\n*   18 or older\n*   Not claimed as a dependent on someone else's tax return\n*   Not a full-time student\nThe credit amounts to 10%, 20% or 50% of your retirement contributions, depending on your adjusted gross income and your-tax filing status (like single or head of household). Among other retirement accounts, this credit applies to traditional IRAs, Roth IRAs and 401(k)s. The maximum contribution amount that may qualify for the Saver's Credit is $4,000. END
 TITLE: Do Retirement Accounts Affect Your Taxes? CONTENT: Pandemic Relief and Taxes\n-------------------------\nThe federal CARES Act signed into law in March 2020 delivers some pandemic-related tax benefits for retirement savers.\nFor example, anyone 59½ or younger can withdraw up to $100,000 from an eligible retirement plan in 2020 without paying the usual 10% tax penalty. In addition, someone can spread out the federal tax due on that withdrawal over a three-year period.\nAlso, people harmed by the pandemic were able to borrow as much as $100,000 from a 401(k) or IRA from March 27 through December 31, 2020, without facing a tax penalty.\nFor those already in retirement, the CARES Act enabled older Americans to skip annual \"required minimum distributions\" from retirement accounts in 2020. If someone wound up taking a required distribution in 2020 before the pandemic struck, they could put back some or all of the money by August 31, 2020. On federal returns for the 2020 tax year, pre-pandemic distributions taken in 2020 must be reflected as tax-free rollovers. END
 TITLE: How to Change Your Budget in a Financial Emergency CONTENT: Tighten Your Budget\n-------------------\nDuring or ahead of a financial emergency, re-examine how you're spending money, no matter whether you're budgeting just for yourself or budgeting for a family.\nFirst and foremost, be sure you've got enough money for the basics, such as food, housing, medications and utilities. To squeeze the most out of your budget for the essentials, consider:\n*   Using coupon apps to score discounts on purchases. These deal apps include Coupons.com, Honey, Rakuten and RetailMeNot.\n*   Buying store-brand groceries rather than brand-name grocery items. Store-brand products might cost as much as 25% less than brand-name groceries.\n*   Asking your landlord whether you can get a break on your rent.\n*   Contacting your mortgage company about emergency assistance, such as mortgage forbearance.\n*   Reaching out to utility providers for help paying your bills.\nIt also might pay off to evaluate nonessential expenses. Here are some questions to ask:\n*   Can you get by without cable TV, at least temporarily?\n*   Can you get rid of some or all of your video streaming services?\n*   Are there any mobile apps you're paying for but rarely use?\n*   Do you really need that new pair of shoes right now?\n*   Is it possible to cancel upcoming trips without losing most of the money you've spent on airline tickets or hotel stays?\n*   Can you work out at home instead of at a gym? Since most gyms are temporarily shut down during the coronavirus pandemic, look at canceling your membership or putting it on hold.\n*   Can you cook at home instead of buying meals at restaurants? Fixing meals at home typically costs less than eating out, whether you're dining in, taking out or ordering delivery. END
 TITLE: How to Change Your Budget in a Financial Emergency CONTENT: Stash Some Cash\n---------------\nIf you're not strapped for cash yet, it might be wise to set up an emergency fund with some of the money left after you've covered the basics. The general recommendation: Put aside the three to six months of living expenses. This can help you remain afloat during a financial emergency and can help you avoid taking out credit cards or loans.\nEven if setting aside three months' worth of savings seems impossible at the moment, try saving whatever you can. One of the simplest ways to start an emergency fund is to schedule regular automatic transfers from, say, a checking account to a savings account. Keep in mind that putting just a small amount per transfer into your emergency fund, perhaps $25 per week, is better than nothing at all.\nIf you're already facing a cash crunch, it might not be the best time to establish an emergency fund. In this case, your No. 1 goal should be to cover everyday living expenses. Once the financial storm has cleared, you can consider starting a rainy day fund. END
 TITLE: How to Change Your Budget in a Financial Emergency CONTENT: Look at How You'll Cover Your Debts\n-----------------------------------\nDuring a financial emergency, you'll want to stay on top of debt payments as much as possible, including your credit card bills.\nOne way to keep up with your credit card bills is to prioritize your debts. The avalanche method or snowball method of paying off your debt might work for you. The avalanche method can save you the most money because it targets credit card bills with higher interest rates. But the snowball method could be best for you if you're hoping to reduce the number of bills you have to pay every month. Even if you're not in the midst of a financial emergency, the avalanche and snowball methods can be smart strategies for chipping away at your debts.\nHere are the main steps of the avalanche method:\n1.  List all of your credit card debts.\n2.  Rank the debts from the highest interest rate to the lowest interest rate.\n3.  Allocate as much money as you can toward the debt that carries the highest interest rate after making the minimum monthly payments on all your other debts.\n4.  After you've knocked out the debt with the highest interest rate, repeat the avalanche process with the debt carrying the next highest interest rate.\n5.  Continue the avalanche method until you've wiped out all of your debts.\nHere are the main steps of the snowball method:\n1.  List all of your credit card debts.\n2.  Rank the debts from the smallest balance to the biggest balance.\n3.  Allocate as much money as you can toward the card with the smallest balance while still making the minimum monthly payments on all your other debts.\n4.  After you've knocked out the debt with the smallest balance, repeat the snowball process with the debt that carries the next smallest balance.\n5.  Continue the snowball method until you've wiped out all of your debts.\nThe avalanche and snowball methods can also be applied to other debts, such as auto loans and student loans.\nIf money is especially tight, you might consider making minimum payments on your credit card bills until the financial emergency has passed. This approach could cost more money, since your balance will take longer to pay off and the amount of interest you owe will rise. But if you need to make room in your budget for essential expenses, paying at least the minimums—and ensuring all payments are made on time—can help keep your credit in good shape through a difficult time. END
 TITLE: How to Change Your Budget in a Financial Emergency CONTENT: Think Twice About Credit Card Purchases\n---------------------------------------\nCash is king during a financial emergency, since it costs nothing extra to pay with what you have in your checking account. On the other hand, putting purchases on a credit card can cost you in the form of interest charges. If you have rewards or cash back cards that you don't want to put in a drawer while you ride out a financial emergency, only use them for essential purchases you know you'll be able to pay off when the bill comes. Otherwise, it might be best to minimize credit card use while you're riding out a financial emergency.\nThere's another reason to avoid charging on your credit card during a financial emergency: Racking up credit card charges can ding your credit score. How? High balances raise your credit utilization ratio, or the percentage of available credit that you're using. That, in turn, harms your credit score and might make it more difficult to get a new credit card or loan if you need to borrow money down the road. Experts recommend keeping your credit utilization under 30%, but the lower, the better. END
 TITLE: How to Change Your Budget in a Financial Emergency CONTENT: Check Into Credit Card Assistance\n---------------------------------\nIf you're running into trouble making credit card payments and you've eliminated the avalanche or snowball method as an option, contact your lender. Lenders are well-equipped during financial crises to assist their customers. A credit card issuer or other lender might be able to temporarily stop or reduce your payments, which can free up cash in your budget to pay for more pressing items, such as rent and food. END
 TITLE: How to Change Your Budget in a Financial Emergency CONTENT: Explore Government Help\n-----------------------\nThe federal government is taking measures to help Americans get through the current crisis. If you're eligible for tax relief or direct payments, you could put the money toward essential expenses, credit card payments or other debt. To find out whether you're eligible, how much money you might get and when you might receive a check, visit the IRS Coronavirus Tax Relief page.\nAnd if you've found yourself temporarily or permanently out of work, you might be eligible for stepped-up unemployment benefits under the American Rescue Plan Act enacted in March.\nAll of this aid can help you retool your budget and help calm rough financial waters. END
 TITLE: How to Change Your Budget in a Financial Emergency CONTENT: Protect Your Credit\n-------------------\nNow more than ever, you should closely guard your credit and fight fraud. While it may not change your budget, it can help you protect your finances and save money down the road.\nScammers prey on consumers during crises like the coronavirus pandemic. If someone contacts you by phone or email seeking personal data such as your credit card information, Social Security number or bank account number, don't provide it. If you think the source may be legitimate, hang up and call the listed phone number to find out if the call was authentic.\nTo catch potential financial fraud, be sure to regularly check your credit report for unusual activity. You can also freeze or lock your credit report to help prevent someone from fraudulently obtaining a credit card or loan in your name. If you freeze your credit, you'll need to lift the freeze before submitting any new loan or credit card applications since creditors can't access your credit file when you have a freeze on it. A credit freeze will not prevent identity theft, but it will help in the event that an identity thief attempts to use your stolen identity to apply for new credit.\nThose aren't the only ways to protect your credit. If you're worried about keeping up with your credit card bills and other debt payments, consider contacting a nonprofit credit counseling agency. A credit counselor can offer budget advice and can work with you on a debt management plan. This can provide the financial breathing room you need to make it through the coronavirus crisis or another emergency. END
 TITLE: How to Change Your Budget in a Financial Emergency CONTENT: What if I Don't Have a Budget?\n------------------------------\nWe've explained how to adjust your budget during a financial emergency. But if you don't already have a budget, what can you do? It's not difficult to get started: It can be as simple as setting up a budget in a spreadsheet or downloading a budget app. Check out our budgeting guide to get tips on creating a budget that can help you weather the financial crisis. Then you'll be prepared to adjust it later on when your financial situation improves. END
 TITLE: COVID-19 Funeral Assistance: How to Get Aid From FEMA CONTENT: What Funeral Assistance Does the Federal Government Provide?\n------------------------------------------------------------\nIn April 2021, the Federal Emergency Management Agency (FEMA) began offering financial assistance for funeral expenses incurred after January 20, 2020, for the death of a loved one attributed to COVID-19. The money is designed to cover expenses associated with funeral services, cremation and burial.\nFEMA limits the assistance to $9,500 per funeral and $35,500 per application. In 2019, the National Funeral Directors Association pegged the median cost of a funeral with a burial and viewing at $7,640.\nItems eligible for assistance include:\n*   Transportation for up to two people to identify the deceased person\n*   Transfer of remains\n*   Casket or urn\n*   Burial plot or cremation niche\n*   Marker or headstone\n*   Clergy or officiant services\n*   Arrangement of funeral ceremony\n*   Use of funeral home equipment or staff\n*   Cremation or burial costs\n*   Costs for producing and certifying death certificates END
 TITLE: COVID-19 Funeral Assistance: How to Get Aid From FEMA CONTENT: Who Is Eligible for Funeral Assistance?\n---------------------------------------\nTo receive federal COVID-19 funeral assistance, you must be a U.S. citizen, non-citizen national or qualified alien who incurred funeral expenses after January 20, 2020, for a death attributed to COVID-19. The death must have happened in the U.S., the District of Columbia or a U.S. territory. However, the deceased person does not have to have been a U.S. citizen, non-citizen national or qualified alien.\nIf several people contributed to funeral expenses, they should apply under a single application as applicant and co-applicant. FEMA says it will also consider documentation from other people not listed as the applicant or co-applicant who may have incurred funeral expenses.\nAn applicant can seek expense reimbursement for funerals of several deceased people. END
 TITLE: COVID-19 Funeral Assistance: How to Get Aid From FEMA CONTENT: What Expenses Are Not Included in Funeral Aid?\n----------------------------------------------\nFEMA will not reimburse any payment for an anticipated funeral. This includes a burial or funeral insurance policy, a prepaid funeral contract, a prepaid trust for funeral expenses or an irrevocable trust for Medicaid.\nFurthermore, an applicant who already received reimbursement for certain funeral expenses through government agencies, nonprofits and similar organizations cannot resubmit the same expenses to the FEMA program.\nHowever, if an applicant received money from the deceased person's life insurance policy, you still can pursue reimbursement from FEMA. END
 TITLE: COVID-19 Funeral Assistance: How to Get Aid From FEMA CONTENT: To complete an application, you must call FEMA at 844-684-6333. Calls are answered from 9 a.m. to 9 p.m. Eastern time Monday through Friday. No online applications are accepted.\nOnce you have applied and have been given an application number, you can supply the required documents by:\n*   Uploading them to your FEMA account at DisasterAssistance.gov.\n*   Faxing them to 855-261-3452.\n*   Mailing them to P.O. Box 10001, Hyattsville, MD 20782.\nFEMA requires the following documents for reimbursement of funeral expenses:\n*   Official death certificate that attributes the death to COVID-19 and shows the death occurred in the U.S., the District of Columbia or a U.S. territory. The death certificate must indicate the death \"may have been caused by\" or \"was likely the result of\" COVID-19 or COVID-19-like symptoms. Similar phrases that indicate a high likelihood of COVID-19 are considered sufficient.\n*   Proof of funeral expenses, such as receipts, that include the applicant's name, deceased person's name, dollar amount of funeral expenses and dates the expenses were incurred.\nIf you're found to be eligible for reimbursement of funeral expenses, FEMA will send the money by check or direct deposit.\nThere is no deadline to apply for funds, and there is no overall funding cap for the reimbursement program. END
 TITLE: COVID-19 Funeral Assistance: How to Get Aid From FEMA CONTENT: Other Steps to Take When a Loved One Dies\n-----------------------------------------\nIn addition to coping with the costs of a funeral, you'll likely need to take other steps when a loved one dies. It may be helpful to have a checklist you can refer to to ensure their estate is secure. Here are eight actions you can take:\n1.  Make sure your loved one's valuables are safe and secure so that they're not stolen by burglars.\n2.  Forward your loved one's mail to your home or the home of the person overseeing the estate.\n3.  Obtain 10 to 20 certified copies of the person's death certificate. These will be used for communication with banks, investment firms, insurance companies and other institutions that hold your loved one's assets.\n4.  Contact the Social Security Administration to report your loved one's death.\n5.  Reach out to the U.S. Department of Veterans Affairs if your loved one was a military veteran.\n6.  Contact banks and other financial institutions where the loved one maintained accounts.\n7.  Notify the person's credit card companies of the death so the accounts can be canceled or transferred to the surviving spouse.\n8.  Contact the three credit bureaus (Experian, TransUnion and Equifax) to obtain your loved one's credit reports. This will give you an overview of creditors you may need to contact in regard to credit card and loan accounts. The deceased person's credit files will eventually no longer exist once all the credit accounts have been deleted over time. END
 TITLE: What Is a Courtesy Loan? CONTENT: Types of Courtesy Loans\n-----------------------\nThe two main types of courtesy loans are:\n*   **Payday loans**: Payday loans are small-dollar, high-cost loans designed to provide financial support until your next paycheck comes. Payday lenders usually don't run credit checks. Payday loans are commonly borrowed in amounts of a few hundred dollars, but payday loans of $1,000 or more are available in some states. According to the Federal Trade Commission (FTC), payday lenders typically charge $10 to $30 for every $100 borrowed. For a two-week payday loan, a fee of $15 for every $100 works out to an APR of 391%.\n*   **Title loans**: For a title loan, also known as a car title loan, you use your car, truck, motorcycle or other vehicle as collateral. Many title loan companies don't check your credit. You won't get your vehicle title back until you've paid off the loan, along with any finance charges and fees. The FTC says the average monthly fee for a title loan (25%) is equivalent to an APR of about 300%. END
 TITLE: What Is a Courtesy Loan? CONTENT: Should I Get a Courtesy Loan?\n-----------------------------\nBefore you even think about signing on the dotted line for a courtesy loan, be sure you understand how quickly you'll be expected to repay the loan and how much it'll ultimately cost to borrow the cash. Both payday loans and title loans generally charge much higher APRs than other borrowing methods, such as credit cards and personal loans.\nFurthermore, lenders that handle courtesy loans normally don't report your payments to the credit bureaus. This means a positive payment history won't boost your credit score. However, the lender may alert credit bureaus if you've fallen behind on loan payments. Delinquent courtesy loan payments can show up on your credit reports, which will likely bring down your credit scores. END
 TITLE: What Is a Courtesy Loan? CONTENT: Alternatives When You Need Money Fast\n-------------------------------------\nTo avoid a payday loan or title loan, you can explore other options if you have bad credit or no credit. Among them are:\n*   **Unsecured personal loan**: You may be able to obtain a personal loan that doesn't require collateral from a local bank or credit union, or from an online lending platform like LendingClub, Prosper or Upstart. Be aware that you may need a solid credit history and a high credit score to qualify for the best terms, such as a low APR.\n*   **Cosigned loan**: A creditworthy relative or friend may be willing to cosign a loan you borrow, and perhaps give you a better shot at qualifying to borrow money than if you were to go it alone. Keep in mind that if you do recruit a cosigner, you could jeopardize their credit in addition to your own if you fall behind on payments or default on the loan altogether.\n*   **Loan from friends or family**: You may be able to approach a friend or family member about borrowing money to cope with your cash crunch. To head off future conflicts, be sure to put the lending agreement in writing and stick to your word. The agreement should spell out all the conditions of the loan, such as the amount borrowed, the interest rate and consequences for breaking the terms.\n*   **Credit card cash advance**: If you have a credit card, you may be able to borrow a certain amount of money as a credit card cash advance. When choosing among credit cards, try to pick the one with lowest APR for cash advances. Keep in mind that APRs for cash advances can exceed 25%, so this should only be considered as a last-resort option. END
 TITLE: What Happens if Your Car Is Totaled? CONTENT: What Does It Mean When Your Car Is Totaled?\n-------------------------------------------\nA standard auto insurance policy normally won't pay to fix your car if it's been totaled. When your car is totaled, the insurance company has decided the repairs would cost more than the car is worth, or that the car is simply beyond repair. So, if needed repairs would cost $15,000 but the vehicle is valued at $13,000, the insurer is likely to declare it a total loss. In some states, an insurer might be required to total your car if repair costs would exceed a certain percentage of the car's value.\nOnce a car is totaled, your insurer might then owe you the actual cash value of your car, depending on what your auto insurance policy says. Your insurer will figure out the actual cash value of your totaled car by considering the following information about the vehicle:\n*   Make and model\n*   Age\n*   Mileage\n*   Condition\n*   Resale value of the parts and metal (known as the salvage value)\n*   Possibility of unseen damage (leaks, alignment issues, etc.)\n*   How in-demand the vehicle is in your local auto market\nActual cash value refers to the sale price the car could have reasonably fetched on the open market before it was crashed. It differs from another term you may have heard regarding auto insurance: replacement cost value. Replacement cost refers to what it would cost to purchase a brand-new car comparable to one that's been totaled. Not all auto insurance policies offer replacement cost as an option.\nKeep in mind that your auto insurance premium will be higher if you go with replacement cost value coverage instead of actual cash value coverage. END
 TITLE: What Happens if Your Car Is Totaled? CONTENT: Does Insurance Cover a Totaled Car?\n-----------------------------------\nIf an insurer totals your car, it's typically covered by two parts of your policy: comprehensive coverage and collision coverage. When you have a car loan or lease, those two types of coverage normally are required. They aren't legal requirements on a car you've paid off, however—the decision to carry comprehensive or collision coverage is up to you. Without coverage beyond the liability insurance that's required in almost every state, you might have to pay out of pocket to replace your totaled car (especially if you're at fault in the crash).\nComprehensive insurance covers damage or disasters not related to a collision. Meanwhile, collision insurance applies when your car is damaged during a crash with another car, an object or property.\nIn some cases, an insurer might not cover a claim when your car is a total loss. Here are five possible reasons for your claim being denied:\n1.  You lack the appropriate coverage, such as comprehensive or collision.\n2.  You failed to keep up with your premium payments.\n3.  You were driving while intoxicated.\n4.  You took too long to report the damage to your insurance company.\n5.  You filed a fraudulent claim.\nTake note that each insurance company uses different criteria for declaring that a car is a total loss. However, a car that's totaled by one insurer probably would be totaled by another.\nHere are three things to keep in mind regarding a claim for a totaled car:\n1.  You'll need to pay your deductible before the insurance company will issue a claim check.\n2.  If you think your car is worth more than the insurance company thinks it is, you can try to negotiate a higher payout.\n3.  After your claim is approved, the insurer usually assumes ownership of the totaled car, which may then be sold for scrap or parts. If you want to keep your totaled car (and that's allowed where you live), the insurance company will subtract the salvage value from your claim payout. END
 TITLE: What Happens if Your Car Is Totaled? CONTENT: Do You Still Have to Make Loan Payments on a Totaled Car?\n---------------------------------------------------------\nInsurance experts recommend continuing to make loan or lease payments until the insurance company sends the claim payment to your lender, even if you can't drive the car.\nOnce the lender is paid off, what if you still owe money on the car? Unless you have what's known as gap insurance, you're responsible for making up any difference between the claim payout and the loan or lease balance. So, let's say the insurance company paid out the totaled car's actual cash value of $25,000, but you owe $27,500 on the loan financing the vehicle. In that case, you're responsible for the remaining $2,500.\nSticking with that example, gap insurance that you buy on top of your standard coverage could fill the gap between the $25,000 claim payment and the $27,500 loan or lease balance. That means you wouldn't have to come up with the $2,500 difference on your own. Keep in mind, though, that gap insurance kicks in only when you've already got comprehensive and collision coverage. Gap insurance typically costs about 5% of your annual car insurance premium, according to AAA. END
 TITLE: What Happens if Your Car Is Totaled? CONTENT: How Can a Totaled Car Affect Your Credit Scores?\n------------------------------------------------\nCar accidents, even those that result in a financed car being totaled, won't directly impact your credit scores. Credit scores are based solely on the information in your credit report and don't include things like your driving record or previous insurance claims.\nTo make certain your credit stays unscathed, work closely with your insurer and your lender to make sure the loan covering the vehicle is properly paid off and closed. Your financial obligation to make your car payments doesn't go away until the loan balance reaches $0, whether that's because your insurer reimbursed the lender, or you've paid off what was left over after their contribution.\nWhile an accident won't harm your credit scores, it can affect your auto insurance premium, even if your car is totaled after an accident. You might be able to avoid this if you qualify for accident forgiveness coverage, but that benefit isn't available in every state or from every insurer. Insurance companies that do offer it include Allstate, American Family, Geico, Liberty Mutual, Nationwide, Progressive, The Hartford, Travelers and USAA. END
 TITLE: What Happens if Your Car Is Totaled? CONTENT: Check Your Credit\n-----------------\nAn auto insurance claim stemming from an accident that totals your car can affect your insurance premium. But it shouldn't affect your credit as long as your auto loan is paid off one way or another. Work closely with your insurer and your lender, and stay on top of your credit. Get a free copy of your credit report from all three credit bureaus at AnnualCreditReport.com. You can also review your credit report for free through Experian, and sign up for free credit monitoring while you're at it. If you plan to finance another vehicle to replace the one you've just lost, getting your credit scores in great shape can help you secure a better loan offer. END
 TITLE: How to Finance a Micro-Wedding CONTENT: Pay With Cash\n-------------\nEvery dollar you don't borrow is a dollar you won't be paying any interest on. For that reason, the first place you should look for wedding funds is your own bank account. If you've got enough savings set aside, you might look at allocating some of that cash for your micro-wedding—as long as it doesn't strain your finances. Be sure you're not siphoning money from your emergency fund, though. A wedding doesn't qualify as an emergency, after all.\nWhen that's not enough, consider doing the following:\n*   **Set up a wedding savings account.** If you've got enough time before you exchange vows, look at setting up a savings account solely for wedding expenses. A joint account you and your partner both contribute to can help you stay clear-eyed on your savings goals and keep you organized when it comes time to pay. Be sure to understand when your vendors expect to be paid so you can adjust your savings goals accordingly. One of the best ways to stay disciplined in making deposits is to set up automatic payments once a month or every pay period.\n*   **Sell investments.** If you hold shares of stock, mutual funds or exchange-traded funds (ETFs), you might sell some of them to cover your micro-wedding expenses. Keep in mind that you may need to pay taxes on your investment gains. Also, resist the temptation to sell investments you hold in tax-deferred retirement accounts.\n*   **Pursue a side hustle.** A side hustle might generate enough money to pay for a micro-wedding. This could include part-time consulting, freelance graphic design or writing, tutoring or Airbnb rentals. END
 TITLE: How to Finance a Micro-Wedding CONTENT: Pay With a Credit Card\n----------------------\nPaying for a wedding with a credit card is a convenient option—you probably already have several in your pocket, after all. But just as with any type of big purchase, putting your wedding expenses on a credit card has pluses and minuses.\nFirst, the pluses:\n*   You might be able to snag a 0% APR during a credit card's introductory period, typically allowing you 12 to 18 months to pay off the balance without being charged any interest. Check out Experian CreditMatch™ for available 0% intro APR offers.\n*   You potentially can rack up cash and rewards points that offset the cost of your micro-wedding—or that help pay for a honeymoon.\n*   You might enjoy consumer protections when you cover micro-wedding costs with a credit card. For instance, you might be able to enlist the help of the credit card issuer to be reimbursed if the caterer fails to come through on your wedding day.\n*   You might wind up borrowing less money with a credit card. How? Unlike a personal loan that could end up providing more cash than you actually need, a credit card will cover only what you need to spend and nothing more.\nNow, the minuses:\n*   You'll be hit with interest charges if you don't pay off your card balance before a 0% introductory period ends.\n*   If you don't score a 0% intro APR offer, you could be stuck with high interest rates when you carry a balance from month to month.\n*   Paying with a credit card might encourage you to overspend.\n*   Not every vendor or venue accepts payment via credit card.\n*   Your credit scores could go down if your micro-wedding charges bump up your credit utilization ratio. This ratio takes into account how much credit you're using versus how much credit you've got available. END
 TITLE: How to Finance a Micro-Wedding CONTENT: Take Out a Personal Loan\n------------------------\nIf you'd rather not put wedding expenses on your credit card, a personal loan is another option to explore.\nPersonal loans typically provide rapid access to funds. You can apply for one online and receive the money within a couple of days. But perhaps more important, personal loans frequently offer lower interest rates than credit cards do.\nBut there are downsides to a personal loan. They include:\n*   Thousands of dollars in interest might pile up before you pay off the loan.\n*   You could be tempted to spend more money than you had planned to spend otherwise.\n*   In addition to interest charges you'll pay over time, personal loans usually come with origination fees when the loan is issued that can be as high as 8% of the loan amount. END
 TITLE: How to Finance a Micro-Wedding CONTENT: Borrow From Family or Friends\n-----------------------------\nThe bank of Mom and Dad could be a good place to borrow money for a micro-wedding. After all, your parents might let you take out a \"loan\" and repay it interest-free. Also, you might get a more generous repayment period than you would with a traditional lender. A potential downside, though, is that your loan payments won't be reported to the credit bureaus, and therefore won't help you build credit or improve your credit scores.\nThis also means late payments won't reflect poorly on you either. Beware, though, borrowing money from family or friends can strain relationships, particularly if it takes you too long to repay the money—or, worse yet, don't repay the entire amount. END
 TITLE: How to Finance a Micro-Wedding CONTENT: Take Advantage of Home Equity\n-----------------------------\nIf you're a homeowner, you might consider tapping the built-up value of your home with a home equity loan to cover your micro-wedding expenses. These loans often come with interest rates that are lower than those for some other loans, in addition to fixed interest rates.\nBut is it really worth it? The proceeds from a home equity loan might cover the entire tab of a micro-wedding, but if you fail to pay back the loan, you could jeopardize the ownership of your home. END
 TITLE: How to Finance a Micro-Wedding CONTENT: Check Your Credit Before Borrowing\n----------------------------------\nIf you decide to go ahead with financing your micro-wedding, be sure to check your credit reports before applying for credit. Reviewing your free Experian credit report enables you to spot any errors or other issues that might be holding down your credit scores. Lower credit scores can lead to higher interest rates for credit cards, personal loans and home equity loans. If you're looking to open a credit card or borrow a personal loan, Experian CreditMatch™ can pair you with offers suitable for your creditworthiness. END
 TITLE: What Can Be Used as Collateral for a Personal Loan? CONTENT: Types of Collateral You Can Use\n-------------------------------\nSeveral types of collateral can be used for a secured personal loan. Your options may include:\n*   Cash in a savings account\n*   Cash in a certificate of deposit (CD) account\n*   Car\n*   Boat\n*   Home\n*   Stocks\n*   Bonds\n*   Insurance policy\n*   Jewelry\n*   Fine art\n*   Antiques\n*   Collectibles\n*   Precious metals\n*   Future paychecks\nTypically, funds in a retirement account like a 401(k) or IRA don't qualify as collateral. In addition, some lenders may not accept a car over five to seven years old as collateral. END
 TITLE: What Can Be Used as Collateral for a Personal Loan? CONTENT: Pros and Cons of Collateral on a Loan\n-------------------------------------\nPutting up collateral for a secured personal loan may be the only way you're able to borrow, but keep in mind that doing so comes with both pros and cons.\nPros include:\n*   Putting up collateral may make it easier to obtain a loan than if you don't put up collateral, particularly if you have a damaged credit history or no credit history at all.\n*   Because your collateral reduces the financial risk for a lender, you may be able to borrow more money than you'd be able to with an unsecured loan.\n*   Secured loans typically offer lower interest rates and longer repayment periods than unsecured loans.\n*   A secured loan may help boost your credit. Making on-time payments toward a secured loan can help you establish a credit history if you don't have one or help improve your credit if it's been damaged. If this is a priority for you, make sure your lender reports your payments to the major credit bureaus.\nCons of a secured personal loan backed by collateral include:\n*   Your collateral could be taken by the lender if you default on the loan.\n*   Aside from seizing your collateral, a lender may tap a debt collector to seek overdue money from you, may report your missed payments to credit bureaus or may even take you to court in an attempt to collect what's owed.\n*   If you use a savings account or CD as collateral, a minimum balance may be required.\n*   The lender may restrict how you use the money you borrow.\n*   Some lenders may charge high interest rates or high fees for secured personal loans, especially if you have bad credit. END
 TITLE: What Can Be Used as Collateral for a Personal Loan? CONTENT: What to Know Before You Sign a Loan Agreement\n---------------------------------------------\nBefore you sign on the dotted line for a secured personal loan, be sure you're aware of:\n*   How much money you're borrowing.\n*   What the APR is.\n*   What penalties there are for late payments or an early payoff.\n*   How much the monthly payments will be.\n*   What happens to your collateral if you can't repay the loan. END
 TITLE: How to Save Money as a Homeowner CONTENT: Lower Your Utility Bills\n------------------------\nIn 2019, the typical electric bill in the U.S. totaled $115 a month, according to the U.S. Energy Information Administration. That adds up to $1,380 a year just to keep the lights on. And that doesn't include paying for other utilities, such as natural gas and water.\nSo, what can you do to trim your household's utility expenses? Here are four suggestions:\n1.  Install LED lights and dimmer switches. Upgrading your lights and switches involves an upfront cost, but it can save you money on electricity costs over time. LED lights use less electricity and don't have to be replaced as often as traditional lights. Dimmer switches can help you save by cutting back on the amount of light you use.\n2.  Invest in energy-efficient appliances. If you're outfitting a new house or replacing worn-out appliances, check out appliances that carry the Department of Energy's Energy Star certification. This includes refrigerators, dishwashers and washing machines and even home heaters and air conditioners. Energy Star-certified washing machines use 25% less power and 33% less water than regular washers do.\n3.  Consider getting a programmable thermostat. A programmable thermostat can automatically adjust heating or cooling in your house to increase efficiency and chip away at energy costs. You can save as much as 10% a year on heating and cooling by turning your thermostat back by seven to 10 degrees from its normal setting for eight hours a day, according to the Energy Department.\n4.  Monitor water usage. You may try decreasing the setting on your water heater or washing your clothes in cold water to lower energy costs. Meanwhile, fix any leaky faucets so you're not sending money down the drain.\nIf you plan to stay in your home for a while, you might weigh the benefits of installing solar panels or improving your home's insulation to reduce your utility bills over time. Depending on where you live, you might even qualify for cash rebates, tax credits and other programs that incentivize homeowners to upgrade their house's energy efficiency. END
 TITLE: How to Save Money as a Homeowner CONTENT: Look Into Tax Benefits\n----------------------\nOwning a home can have tax benefits that some homeowners may ignore or may not even be aware of.\nOne of them is the mortgage interest tax deduction. Typically, you can deduct the annual interest you pay on a mortgage if you itemize deductions on your federal tax return. Eligibility for the deduction depends on the dollar amount of your mortgage and when you bought your home.\nYou also may be able to claim a deduction on your federal tax return for state and local property taxes paid on your home.\nIf you installed a residential solar energy system, you can qualify for an additional tax credit. The credit allows you to deduct 26% of the cost of installing solar for residential projects that begin installation through 2022, then steps down to 22% for projects that begin in 2023. As it stands now, the residential credit vanishes in 2024. END
 TITLE: How to Save Money as a Homeowner CONTENT: Consider Refinancing\n--------------------\nRefinancing your mortgage involves getting a new loan to pay off your original mortgage loan. Doing so may let you reduce the interest rate on your mortgage or drop your monthly payment by stretching out the repayment period. You may also refinance to get rid of the requirement for mortgage insurance, or to convert your adjustable-rate mortgage to a fixed-rate loan.\nSo, how do you decide whether refinancing is right for you?\nIf you have good or excellent credit, you could take advantage of historically low interest rates and refinance your mortgage, which can lead to lower monthly payments and thousands of dollars in savings over time.\nKeep in mind, however, that refinancing may come with thousands of dollars in fees, which may partially offset savings you could realize from a lower interest rate or lower monthly payments (though you'll likely save significantly more over the long haul if you stay in your home). In addition, if you pick a lower-interest refinancing deal with a repayment period that's shorter than the one you have now, you may have higher monthly payments.\nUltimately, you may decide to go ahead with refinancing if you run the numbers and see that you'll save enough on your monthly payments to break even on your refinancing costs in just a few years. If you go ahead with refinancing, be sure to shop around for the lender offering the best rates, terms, fees and customer service. END
 TITLE: How to Save Money as a Homeowner CONTENT: Lower Your Homeowners Insurance Costs\n-------------------------------------\nSome homeowners may be able to shave money from their home expenses by lowering their homeowners insurance bill. Data released in 2020 by the National Association of Insurance Commissioners shows the average annual premium for homeowners insurance stood at $1,249 in 2018.\nHow can you decrease your homeowners insurance premium? Here are four potential ways:\n1.  Shop around. Compare insurance quotes from at least three companies, and you may be able to find another insurer that can cover you for less.\n2.  Raise the deductible. If you bump up the deductible from, say, $500 to $1,000, you may be able to cut your premium. The deductible is the amount of money you pay out of your own pocket when your insurer approves a claim.\n3.  Bundle policies from the same insurer. If you purchase homeowners insurance from the same company that insures your car, you may be able to score a lower premium. Insurers call this \"bundling.\"\n4.  Ask about discounts. You might qualify for premium discounts if, for instance, you've installed a burglar alarm or you're older than 55. Or you might secure a loyalty discount by staying with an insurer for a certain number of years. There's no risk in calling your insurer to check. END
 TITLE: How to Save Money as a Homeowner CONTENT: How Your Credit Score Can Help You Save Money\n---------------------------------------------\nA good credit score can open a number of financial doors. Whether you're getting ready to sign a mortgage agreement or you're considering a refinance, an improved credit score can help you secure a lower interest rate and save you a heap of money over the life of your loan.\nYou might also want to finance home improvement costs with a credit card that offers an introductory 0% annual percentage rate (APR) for new purchases, such as a new refrigerator or supplies for a home improvement project. Just be sure to wipe out the full balance before the intro period ends and the card's standard interest rate kicks in. The right credit card can also deliver rewards well beyond its no-interest intro period for shopping at certain stores or making certain purchases.\nIf you're thinking of applying for a rewards credit card or a card with a 0% introductory APR, check out Experian CreditMatch™ to see customized credit card offers that may be right for you.\nA good credit score also could enable you to gain favorable terms, such as a low interest rate, for a home equity loan or home equity line of credit. This may wind up being a cheaper way to borrow money to pay for a home improvement project or another household need than putting purchases on a high-interest credit card. END
 TITLE: What Is a Conforming Loan? CONTENT: How Does a Conforming Loan Work?\n--------------------------------\nA conforming loan is the most common kind of mortgage loan. Conforming loans are widely available from lenders. But, unlike FHA, VA and USDA and home loans, they're not insured or guaranteed by the government. Typical guidelines for a conforming loan include:\n*   Minimum FICO® Score☉ of 620.\n*   Debt-to-income ratio up to 45% (although a high credit score or large stash of cash may push the ratio to 50%).\n*   Down payment as low as 3% of the loan amount.\n*   Loan amount falls under Fannie Mae or Freddie Mac limits.\nThe biggest difference between a conforming loan and a non-conforming loan is a lower borrowing limit. For 2021, the general limit to buy a single-family home with a conforming loan is $548,250, though the limit rises as high as $822,375 in some high-cost areas of the U.S.\nTo find the borrowing limit for a conforming loan where you plan to buy a home, use the Federal Housing Finance Agency's interactive mapping tool. END
 TITLE: What Is a Conforming Loan? CONTENT: Pros and Cons of Conforming Loans\n---------------------------------\nAs with any type of loan, a conforming loan comes with potential pros and cons.\nAmong the potential benfits as compared with non-conforming loans:\n*   Easier qualification\n*   Lower interest rate\n*   Lower FICO® Score requirement (620 versus 680 for most jumbo, or non-conforming, loans)\n*   Lower down payment\nWhy are conforming loans often simpler to get than a non-conforming loan? Because they're less risky for lenders, since they can sell these loans to Fannie Mae or Freddie Mac. Both of these government-sponsored entities provide stability to the U.S. home lending market, since they guarantee the principal and interest payments made by borrowers.\nThe Consumer Financial Protection Bureau notes that many of the mortgage loans that got borrowers into trouble during the 2008 housing crisis fell into the non-conforming category.\nAside from the drawback of the borrowing limit, a conforming loan may be tougher to obtain if you have a relatively low credit score or a high debt-to-income ratio. Furthermore, a conforming loan may give you less flexibility in terms of the type of property you can buy. For instance, the borrowing limit for a conforming loan may keep you from buying a home when you need to borrow more money than the limit allows. END
 TITLE: What Is a Conforming Loan? CONTENT: How to Apply for a Conforming Loan\n----------------------------------\nAn array of lenders offer conforming loans. In fact, more lenders provide conforming loans than non-conforming loans.\nAs you prepare to apply for a conforming loan, keep in mind that lenders typically will look for a:\n*   Credit score of at least 620\n*   Debt-to-income ratio below 50%\n*   Maximum loan-to-value ratio of 97%, translating into a down payment of at least 3%\nTo best position yourself for loan approval, check your free credit report and free FICO® Score from Experian to see where your credit stands. It's also important to stop applying for new credit, hold off on big purchases, reduce your credit card debt and make sure you pay every bill on time. All of these steps may help improve your credit score and also your odds for obtaining a conforming loan. END
 TITLE: How Much Should You Spend on a Wedding Gift? CONTENT: Wedding planning website The Knot reported last year that the average amount spent on a wedding gift in 2019 was $120. While this average obviously isn't a universal requirement, it could provide an idea of how much you may want to spend on a wedding gift—and how much might be too much.\nThe Knot goes further by breaking down the percentages you may want to assign to gifts for the couple:\n*   60% of your total allocation for the wedding gift\n*   20% of your total allocation for the wedding shower gift\n*   20% of your total allocation for the engagement gift\nApplying that math, if your entire budget for the couple is $300, you'd spend $180 on the wedding gift, $60 on the wedding shower gift and $60 on the engagement gift. The Knot recommends that if you're not invited to the wedding shower, you might shift the extra 20% toward the wedding gift.\nSo, how much is too much to spend on a wedding gift? While there's technically no maximum amount, be sure to stay within your budget and weigh your relationship with the couple. Even if you aren't very close with the couple, consider the cost of putting on a wedding and look at your gift as a way to thank them for the invite. END
 TITLE: How Much Should You Spend on a Wedding Gift? CONTENT: Think About Your Relationship with the Couple\n---------------------------------------------\nHow much you spend on a wedding gift may vary based on how much you know one or both members of the couple. You likely won't be hurting anyone's feelings if you spend modestly on a friend from college you haven't seen in years. If it's your best friend, brother or sister getting married, however, you might go all out and spend hundreds of dollars on something special. But don't go overboard if you can't afford it. Someone close to you shouldn't take it personally if you're struggling financially and don't spoil them on their wedding day.\nIf you plan to show up to the wedding with another person, such as a date, you might consider bumping up the price tag for the gift to make up for the cost of the food and drink your companion will be consuming.\nAlso, keep in mind that if one or both members of the couple previously gave you a wedding gift, you may want to take that into account when deciding on how much to spend on their gift. END
 TITLE: How Much Should You Spend on a Wedding Gift? CONTENT: Stay True to Your Budget\n------------------------\nWhether you plan to earmark $50 or $250 for a wedding gift, take a look at your overall budget before making a purchase. You don't want to spoil the happy day by spending beyond your means on a wedding gift.\nIf you go overboard, you might add to the debt you already have or might take on brand-new debt. It's particularly important to review your budget so that you don't wind up with more credit card debt than you can handle.\nIf you don't have a household budget, it's pretty simple to create a spending plan. Here are four key steps:\n1.  Figure out your income (after taxes).\n2.  Add up and categorize your expenses.\n3.  Set realistic spending goals.\n4.  Monitor your spending.\nIf you already have a free Experian account or sign up for one, you can track your expenses through the Personal Finances tool. You also can rely on budget apps such as Goodbudget, Mint and You Need a Budget (YNAB). Regardless of how you track your budget, it's critical to stick as closely to it as possible, and adjust if necessary. A budget will do you no good if you don't heed the guidelines you've set for yourself. END
 TITLE: How Much Should You Spend on a Wedding Gift? CONTENT: Consider How Much You're Spending to Attend the Wedding\n-------------------------------------------------------\nAs you figure out how much money to spend on a wedding gift, you'll want to determine how much money you'll be spending to attend the wedding.\nIf the wedding is local, you may feel more comfortable putting more money toward a gift than if you're paying for airfare and a hotel to show up at a destination wedding in a place like Hawaii or Jamaica. It's likely the couple will understand if you trimmed the gift budget because you forked over thousands of dollars to be at their ceremony. END
 TITLE: How Much Should You Spend on a Wedding Gift? CONTENT: Cash Is Always an Option\n------------------------\nBudgeting for a wedding gift is a wise move, but it might be hard to find a great gift that fits your budget. Instead of buying a physical gift that blows your budget, one way to keep wedding gift spending in check is to simply give the couple a sum in cash.\nYour gift of money may delight the couple more than the alternative, anyhow. According to a 2019 survey by the Zelle payment app, 84% of people indicate they'd prefer money as a gift for a major occasion (such as a wedding), with just 16% favoring a physical gift.\nA gift card might be a smart option for a monetary gift too. You still won't need to worry about hunting down the perfect physical gift, but a gift card can still show some personalization if it's for their favorite store or restaurant. Plus, some gift cards can be replaced if they're lost or stolen, making them a safer choice than cash. On top of that, a card likely will be easier for the couple to transport than a physical gift would be. END
 TITLE: What Is Seller Financing on a Home? CONTENT: How Does Seller Financing Work?\n-------------------------------\nIn a seller-financing scenario, the seller acts as the lender in the purchase of a home. The lending agreement is between the buyer and the seller, with no bank, credit union or other lender participating in the deal. It's estimated that fewer than 10% of home sellers serve as lenders.\nThe seller does not provide cash to the buyer for the home purchase. Rather, the seller extends credit to the buyer for the purchase, and the buyer makes regular payments to the seller.\nWhile no bank or other lending institution plays a part in seller financing, the buyer and seller often use real estate agents or attorneys to generate the purchase and lending agreements. Among other things, the buyer and seller will need to negotiate the loan's interest rate and length.\nSeller financing can go down one of two avenues:\n*   The buyer receives the title to a house after promising to pay off the loan from the seller. In this scenario, the buyer can sell or refinance the home, but still must make payments under the seller-financing arrangement.\n*   The seller retains the title to a house until the buyer pays off the loan. This means the buyer can't sell or refinance the home until the loan is paid off and the title becomes theirs.\nRegardless of how the seller financing is carried out, the seller frequently requires the buyer to fill out a loan application, go through a credit check and come up with a down payment. In addition, the seller often insists on an appraisal of the home's value and retains the right to foreclose on the home in the event the buyer defaults on the loan.\nAs with any mortgage, you should work to improve your credit score before you begin your home search. Since you won't know whether a seller will perform a credit check (and whether you'll even go this route), you should ensure your credit is in the best shape possible before you apply for a home loan. END
 TITLE: What Is Seller Financing on a Home? CONTENT: Pros and Cons of Seller Financing\n---------------------------------\nJust as with a traditional mortgage, seller financing comes with pros and cons.\nWhile many of the details will depend on the agreement reached between buyer and seller, possible pros of seller financing include:\n*   **Simpler access to credit**: Seller financing may allow a buyer to get a home loan when it's not available from a traditional lender because of poor credit or other hurdles.\n*   **No minimum down payment**: A seller-financing deal may not feature a minimum down payment, unlike traditional mortgages, though some experts advise sellers to collect a down payment of at least 10%.\n*   **No mandated credit check**: Some sellers may not check a buyer's credit report.\n*   **Low closing costs**: Closing costs may be lower with seller financing than with a traditional mortgage.\n*   **No private mortgage insurance**: Sellers may not require private mortgage insurance (PMI), which traditional lenders typically mandate if a buyer makes a down payment of less than 20%.\n*   **Negotiating power**: A buyer may be able to obtain better terms, such as a lower interest rate or longer repayment schedule, than they'd get from a traditional lender.\n*   **Speedier transaction**: Seller financing may be finalized more quickly than a traditional mortgage.\nDespite potential benefits, seller financing is a riskier approach to a home purchase than using a traditional mortgage lender. Potential negatives include:\n*   **Hefty down payment**: In an effort to protect themselves financially, some sellers may ask a buyer to provide a down payment of at least 20%.\n*   **High interest rate**: Because they're taking on significant risk, some sellers may charge an interest rate exceeding the average interest rate charged by a traditional lender.\n*   **Overvalued home**: If a seller doesn't order a property appraisal, the buyer may wind up paying too much money for the home.\n*   **Less buyer protection:**: Because a seller, rather than a traditional lender, extends the loan, the buyer may have fewer consumer protections available under state and federal laws. The purchase contract may also contain provisions and language that increase the buyer's risk.\n*   **Short repayment period**: A seller-financing loan may be offered with a short term, such as five years, rather than a longer traditional term, such as 30 years. At the end of a short repayment period, you may be forced to refinance the loan if you cannot pay a potentially required balloon payment or complete the loan term as agreed.\nBecause of the increased risks of purchasing a home directly from the homeowner, buyers should hire an attorney, if possible, to make sure their rights are being upheld in a seller-financing agreement.  \nDoes Seller Financing Affect Your Credit?\n-----------------------------------------\nPayments made on a seller-financed loan may not show up on your credit report. Banks and other mortgage lenders normally report payment activity to credit bureaus, but a seller-lender might not. While this means an occasional late payment may not hurt your credit score, all your on-time payments won't help it as it would with a traditional mortgage.\nTo report activity to a credit bureau, a lender typically must operate as a business. If you're not sure whether your seller operates as such, you can ask them and also request that they report your payment activity to the credit bureaus if possible.\nWhile a seller might not report payment activity to credit bureaus, negative marks still may end up on your credit report if you default on the seller-financed mortgage. If you fall behind on payments, the seller-lender may pursue a court judgment against you or may turn over your account to a debt collector. In both cases, those moves may be shared with credit bureaus and appear on your credit report, damaging your credit score.  \nIs Seller Financing Right for You?\n----------------------------------\nMaybe you'd like to buy a home that costs a bit more than you can afford. Or perhaps you can't qualify for a traditional mortgage. In either case, seller financing may be an attractive option. You also may find seller financing is a good route if you can't come up with a big down payment, hope to score a low interest rate or want to avoid thousands of dollars in closing costs.\nBut those potential rewards must be balanced against the risks, such as onerous contract terms, the possibility of a higher-than-normal interest rate, needing to make a massive down payment, or being locked into a short repayment period.  \nOther Homebuying Options\n------------------------\nBefore you commit to a seller-financing agreement, do your research. Having little money for a down payment or a credit score that could use some work doesn't mean a mortgage is out of the question. In fact, certain programs help buyers who need a little extra assistance to purchase a home. Here are four alternatives to seller financing:\n1.  Conventional mortgage: These mortgages are private loans, not government-backed loans. To qualify for a conventional mortgage, you typically must have a credit score of at least 620.\n2.  FHA loan: An FHA loan, backed by the Federal Housing Administration, features lower credit score and down payment requirements than conventional mortgages do.\n3.  VA loan: Guaranteed by the U.S. Department of Veterans Affairs, VA loans are available to military veterans, servicemembers and some military spouses. Benefits of VA loans include no down payment requirement (for qualified buyers) and no PMI.\n4.  USDA loan: A USDA loan, guaranteed by the U.S. Department of Agriculture, is designed to make homebuying more affordable for low- to moderate-income consumers in rural and suburban areas.\nThe Bottom Line\n---------------\nWhether you choose seller financing or another mortgage option, be sure to obtain your free credit report and free credit score from Experian so you can ensure your finances are in the best condition possible to qualify for the best lending terms. If your credit needs work, take steps to improve it before starting the homebuying process. Whether or not you finance your new home through a seller, a good credit score could save you thousands of dollars over the life of the loan—especially if you end up going the more traditional mortgage route. END
 TITLE: What Is Seller Financing on a Home? CONTENT: Does Seller Financing Affect Your Credit?\n-----------------------------------------\nPayments made on a seller-financed loan may not show up on your credit report. Banks and other mortgage lenders normally report payment activity to credit bureaus, but a seller-lender might not. While this means an occasional late payment may not hurt your credit score, all your on-time payments won't help it as it would with a traditional mortgage.\nTo report activity to a credit bureau, a lender typically must operate as a business. If you're not sure whether your seller operates as such, you can ask them and also request that they report your payment activity to the credit bureaus if possible.\nWhile a seller might not report payment activity to credit bureaus, negative marks still may end up on your credit report if you default on the seller-financed mortgage. If you fall behind on payments, the seller-lender may pursue a court judgment against you or may turn over your account to a debt collector. In both cases, those moves may be shared with credit bureaus and appear on your credit report, damaging your credit score. END
 TITLE: What Is Seller Financing on a Home? CONTENT: Is Seller Financing Right for You?\n----------------------------------\nMaybe you'd like to buy a home that costs a bit more than you can afford. Or perhaps you can't qualify for a traditional mortgage. In either case, seller financing may be an attractive option. You also may find seller financing is a good route if you can't come up with a big down payment, hope to score a low interest rate or want to avoid thousands of dollars in closing costs.\nBut those potential rewards must be balanced against the risks, such as onerous contract terms, the possibility of a higher-than-normal interest rate, needing to make a massive down payment, or being locked into a short repayment period. END
 TITLE: What Is Seller Financing on a Home? CONTENT: Other Homebuying Options\n------------------------\nBefore you commit to a seller-financing agreement, do your research. Having little money for a down payment or a credit score that could use some work doesn't mean a mortgage is out of the question. In fact, certain programs help buyers who need a little extra assistance to purchase a home. Here are four alternatives to seller financing:\n1.  Conventional mortgage: These mortgages are private loans, not government-backed loans. To qualify for a conventional mortgage, you typically must have a credit score of at least 620.\n2.  FHA loan: An FHA loan, backed by the Federal Housing Administration, features lower credit score and down payment requirements than conventional mortgages do.\n3.  VA loan: Guaranteed by the U.S. Department of Veterans Affairs, VA loans are available to military veterans, servicemembers and some military spouses. Benefits of VA loans include no down payment requirement (for qualified buyers) and no PMI.\n4.  USDA loan: A USDA loan, guaranteed by the U.S. Department of Agriculture, is designed to make homebuying more affordable for low- to moderate-income consumers in rural and suburban areas. END
 TITLE: When Should You Start a Budget? CONTENT: When Is the Best Time to Start Budgeting?\n-----------------------------------------\nThere's no time like the present to start budgeting. Why is it important to set up a budget? Here are three great reasons:\n1.  It can help you live within your means. A budget helps ensure you've got enough money to cover monthly expenses by identifying areas where you might need to cut back. But having a budget doesn't necessarily mean going without. Careful budgeting can help you better plan your expenses so you're able to enjoy life without stressing over money.\n2.  It can help you save money. You might, for instance, want to set aside money for emergency expenses or a down payment on a car loan. A budget can help you target areas where you can trim spending and shift funds toward more important objectives.\n3.  It can help you avoid or reduce debt. When you maintain a budget, you can steer clear of spending more than you earn, and you can decrease or stay away from credit card debt and other types of debt. END
 TITLE: When Should You Start a Budget? CONTENT: How to Start a Budget\n---------------------\nOK, so you've committed to starting a budget. Now what? Here are four budgeting strategies to consider as you pave the way toward a stronger financial future. END
 TITLE: How Much Money Should I Be Saving? CONTENT: Americans Are Saving More During the COVID-19 Pandemic\n------------------------------------------------------\nIn the months since the coronavirus pandemic began, Americans have stepped up their savings. The U.S. personal saving rate, which measures the share of disposable income that people save after covering necessities, stood at 12.8% in March 2020, then soared to a record-high 33.5% in April before dipping to 19% in June. By comparison, the saving rate never exceeded 8.6% in 2019. Before this year, the highest U.S. saving rate was 17.3% in May 1975, when the U.S. was emerging from a yearslong recession.\nWhat has driven up the saving rate this year? Neel Kashkari, president and CEO of the Federal Reserve Bank of Minneapolis, attributes this spike to stay-at-home orders and business closures curbing spending among those who are still employed. END
 TITLE: How Much Money Should I Be Saving? CONTENT: Tips for Spending Less and Saving More Money\n--------------------------------------------\nNo matter whether there's a recession or a pandemic, it's important to adopt positive spending habits that can help you save money. Here's a look at five of those habits.\n1.  Slim down your credit card spending. Paying off your credit card bills in full each month will not only steer you clear of interest charges, it'll help you avoid building up a debt you'll have a hard time repaying. It's often smart to make day-to-day purchases with a credit card if your rewards earnings help you save money, but carrying a balance month to month will work against your savings goals.\n2.  Consolidate your credit card debt. If you do end up carrying a balance, consolidating your credit card debt can help you avoid racking up high interest charges. Those charges can be especially painful if the average APR (annual percentage rate) on your credit cards is 19.99%, for example. Over time, you'd pay less to borrow that money by shifting it to a lower-interest personal loan or a credit card with a promotional 0% APR.\n3.  Fix food at home. Spending more time cooking at home and less time eating at restaurants or ordering delivered meals can reduce your food expenses. A TD Ameritrade survey conducted in April and May 2020 showed the typical American had pocketed an extra $245 by eating at home amid the pandemic instead of eating out.\n4.  Think twice about big purchases. Before you pull out your wallet to buy a new motorcycle or patio furniture, hit pause and wait a day or two. Can you do without this purchase altogether? Would it make more financial sense to buy a used motorcycle rather than a new one? Can you wait to buy that furniture until the price goes down? Weigh these questions before you commit cash or credit to a major purchase.\n5.  Make it harder to shop online. These days, retailers allow us to buy things with just one click. In the first quarter of 2020, Americans spent $160.3 billion with e-commerce retailers—roughly $485 for every man, woman and child in the U.S. To pare down your online impulse purchases, try this one simple step: Erase your automatically stored credit card data. Doing so will force you to type in your credit card number and shipping information each time you place an online order, which may cause you to rethink your purchase.\nConsider the 50\/30\/20 Plan\n--------------------------\nWhen you're looking at how much money you should be saving, you might want to look at the 50\/30\/20 budget plan. What does this plan involve? Under this type of budget, you allocate:\n*   50% of your income toward necessities such as rent or mortgage payments, food, utility bills and minimum debt payments.\n*   Up to 30% of your income toward discretionary spending. This category might include entertainment, shopping splurges and other purchases. Bottom line: Discretionary dollars aren't earmarked for everyday expenses.\n*   At least 20% of your income toward savings and debt payments. This includes savings for retirement, emergencies and various financial goals, such as buying a home. In addition, this category applies to debt payments that exceed the minimum amount due each month.\nThe 50\/30\/20 rule isn't a strict rule; it's merely a suggestion. If you want to put more toward savings and less toward discretionary spending, it could benefit you in the long run. It's up to you to decide what works best for your financial situation.  \nHow Much You Should Have Saved by Now\n-------------------------------------\nAnother way to approach how much money you should save is to consider your age bracket. If you're eyeing retirement savings, here are rough estimates of how much you should be putting into retirement savings by decade, based on the average annual U.S. wage of $53,490 in May 2019:\n*   1x your salary by age 30, or $53,490\n*   3x your salary by age 40, or $160,470\n*   6x your salary by age 50, or $320,940\n*   8x your salary by age 60, or $427,920\nIn addition to your retirement savings, it's important to sock away some money you can easily pull out to cover expenses. To give you a sense of how much Americans in your age group have put aside in savings, here are the results of a 2020 study by wealth management company Personal Capital offering a breakdown of median non-retirement savings balances:\n*   20s: $3,740\n*   30s: $8,524\n*   40s: $10,611\n*   50s: $11,228\n*   60s: $15,193\nThese numbers can serve as a guide for your savings objectives, but they shouldn't dictate how much money you put away to meet those objectives. Your savings targets should match your financial position.  \nHow Much Should You Have in Your Emergency Fund?\n------------------------------------------------\nRegardless of your age, your emergency fund should be an important part of your savings plan. This pool of money—deposited in a high-interest savings account or money market account, for instance—is strictly for emergencies like a job loss, unexpected car repairs or surprise medical bills. This fund can help you avoid running up your credit card balances, dipping into retirement savings, taking out a loan or borrowing money from friends and relatives.\nWhat's the proper amount of money to keep in an emergency fund? Experts usually recommend your emergency fund hold enough money to cover at least three to six months' worth of everyday living expenses. However, the amount in your emergency fund ultimately depends on your own financial picture.  \nMonitor Your Credit to Stay on Top of Your Debt\n-----------------------------------------------\nMonitoring your credit and staying aware of your debt levels can help you improve your overall financial health and, in turn, better meet your savings goals. What else can credit monitoring do for you? It can alert you to identity fraud before it gets out of hand and can spot changes to your credit reports that could be pulling down your credit scores.\nWith a higher credit score, you might qualify for lower interest rates on credit cards and loans, as well as lower insurance premiums, which could save you hundreds or thousands of dollars.  \nThe Bottom Line\n---------------\nIf you're working, it's essential to save a portion of your income—whether it's 5% or 30%—to help guarantee a secure, bright financial future. When it comes to your money, setting some aside today can save you from headache and heartache if times get tough. END
 TITLE: How Much Money Should I Be Saving? CONTENT: Consider the 50\/30\/20 Plan\n--------------------------\nWhen you're looking at how much money you should be saving, you might want to look at the 50\/30\/20 budget plan. What does this plan involve? Under this type of budget, you allocate:\n*   50% of your income toward necessities such as rent or mortgage payments, food, utility bills and minimum debt payments.\n*   Up to 30% of your income toward discretionary spending. This category might include entertainment, shopping splurges and other purchases. Bottom line: Discretionary dollars aren't earmarked for everyday expenses.\n*   At least 20% of your income toward savings and debt payments. This includes savings for retirement, emergencies and various financial goals, such as buying a home. In addition, this category applies to debt payments that exceed the minimum amount due each month.\nThe 50\/30\/20 rule isn't a strict rule; it's merely a suggestion. If you want to put more toward savings and less toward discretionary spending, it could benefit you in the long run. It's up to you to decide what works best for your financial situation. END
 TITLE: How Much Money Should I Be Saving? CONTENT: How Much You Should Have Saved by Now\n-------------------------------------\nAnother way to approach how much money you should save is to consider your age bracket. If you're eyeing retirement savings, here are rough estimates of how much you should be putting into retirement savings by decade, based on the average annual U.S. wage of $53,490 in May 2019:\n*   1x your salary by age 30, or $53,490\n*   3x your salary by age 40, or $160,470\n*   6x your salary by age 50, or $320,940\n*   8x your salary by age 60, or $427,920\nIn addition to your retirement savings, it's important to sock away some money you can easily pull out to cover expenses. To give you a sense of how much Americans in your age group have put aside in savings, here are the results of a 2020 study by wealth management company Personal Capital offering a breakdown of median non-retirement savings balances:\n*   20s: $3,740\n*   30s: $8,524\n*   40s: $10,611\n*   50s: $11,228\n*   60s: $15,193\nThese numbers can serve as a guide for your savings objectives, but they shouldn't dictate how much money you put away to meet those objectives. Your savings targets should match your financial position. END
 TITLE: How Much Money Should I Be Saving? CONTENT: How Much Should You Have in Your Emergency Fund?\n------------------------------------------------\nRegardless of your age, your emergency fund should be an important part of your savings plan. This pool of money—deposited in a high-interest savings account or money market account, for instance—is strictly for emergencies like a job loss, unexpected car repairs or surprise medical bills. This fund can help you avoid running up your credit card balances, dipping into retirement savings, taking out a loan or borrowing money from friends and relatives.\nWhat's the proper amount of money to keep in an emergency fund? Experts usually recommend your emergency fund hold enough money to cover at least three to six months' worth of everyday living expenses. However, the amount in your emergency fund ultimately depends on your own financial picture. END
 TITLE: How Much Money Should I Be Saving? CONTENT: Monitor Your Credit to Stay on Top of Your Debt\n-----------------------------------------------\nMonitoring your credit and staying aware of your debt levels can help you improve your overall financial health and, in turn, better meet your savings goals. What else can credit monitoring do for you? It can alert you to identity fraud before it gets out of hand and can spot changes to your credit reports that could be pulling down your credit scores.\nWith a higher credit score, you might qualify for lower interest rates on credit cards and loans, as well as lower insurance premiums, which could save you hundreds or thousands of dollars. END
 TITLE: How to Save Money Every Month CONTENT: Review Your Recurring Monthly Expenses\n--------------------------------------\nOne of the smartest things you can do every month to save money is to comb through your monthly expenses and see where you can cut costs. Here are nine common monthly expenses and tips for saving money on each of them. END
 TITLE: How to Save Money Every Month CONTENT: Create a Monthly Budget\n-----------------------\nNow that you're equipped with suggestions on how to cut your monthly expenses, how do you put it all together? Create and stick to a budget. Why is budgeting so critical? Here are four things that budgeting can help you accomplish:\n1.  Living within your means. This translates into expenses being lower than your income—allowing you to save more every month.\n2.  Achieving your financial goals. For example, you might dream of retiring at age 60 and heading to Africa to do volunteer work or paying off your 30-year mortgage in 15 years.\n3.  Eliminating debt, whether that's credit card balances, student loans, personal loans or another type of borrowing.\n4.  Saving money to set up an emergency fund, fund a college savings account or contribute to a retirement fund.\nFortunately, there's no right or wrong way to create a budget, which is designed to properly balance how much money is coming in and how much money is going out. Two types of budgets to consider are the 50\/30\/20 budgeting method and zero-based budgeting. To track your spending, which is the key to any budget, you can:\n*   Dedicate a notebook to your monthly budget.\n*   Track your income and expenses in a spreadsheet.\n*   Download an app like Mint, You Need a Budget (YNAB), Pocketguard or Goodbudget, or use Experian's Personal Finances tool (access this by logging in to your Experian account and clicking \"Personal Finances\" at the bottom of the page). END
 TITLE: How to Save Money Every Month CONTENT: Save Money on Monthly Food Bills\n--------------------------------\nAs you work on your monthly budget, be sure to keep your food spending in mind. Whether you eat mostly at home or at restaurants, food expenses can chew up your budget. You might want to put these cost-cutting methods on your menu:\n*   Cook at home more and eat out less. An April 2020 survey found that among Americans who planned to continue cooking at home in the wake of the coronavirus pandemic, 58% said they'd do so to save money.\n*   Create an at-home meal plan at the beginning of each week and adhere to it.\n*   Carve out a set amount of money each month for occasional meals at restaurants and don't exceed it.\n*   Keep an eye out for grocery store loyalty programs.\n*   Consider adding a credit card that supplies generous rewards for grocery shopping. END
 TITLE: How to Save Money Every Month CONTENT: Save Money on Monthly Shopping and Entertainment Costs\n------------------------------------------------------\nAcross the board, there are a number of steps you can take to save money on monthly shopping and entertainment expenses while you're striving to stick to your budget. Here are seven of them:\n1.  Sign up for a store's text messages, which can offer deals that you might not find elsewhere.\n2.  Verify whether a price on Amazon is the best price available. Price-tracking website CamelCamelCamel and price-tracking app Pricepulse can assist with this task.\n3.  Head to the store on holiday weekends. Retailers frequently offer rock-bottom prices on certain items over periods like Fourth of July weekend and Labor Day weekend.\n4.  Pick the smallest shopping cart or basket to bump up the odds that you'll buy fewer items.\n5.  Check out books from the library instead of buying them.\n6.  Watch out for online deals and coupon codes.\n7.  Take advantage of entertainment discounts from membership organizations like AAA and AARP. END
 TITLE: How to Save Money Every Month CONTENT: Put Your Monthly Savings Somewhere Safe\n---------------------------------------\nSo, you've gotten smart about saving money and you've created a budget to monitor your income and spending. What do you do with your extra savings? If you don't already have an emergency fund, this is a good place to start. Generally, an emergency fund should cover three to six months' worth of living expenses. Having an emergency fund can help you pay for unexpected expenses like a hefty car repair or large medical bill without having to borrow money. Putting your money into a high-yield savings account allows you to earn a little more interest on your money than if it were in a typical bank savings account.\nIf you've already built up an emergency fund, you can turn your focus to saving for purposes like preparing for retirement, putting a down payment on a house, buying a car or taking a vacation. END
 TITLE: What Kind of Insurance Does a Motorcycle Need? CONTENT: How Much Motorcycle Insurance Is Mandatory?\n-------------------------------------------\nRequirements for motorcycle insurance differ depending on where you live, but every state except Florida requires motorcycle riders to carry some amount of insurance. In states that do require motorcycle insurance, you must show proof of coverage when you register your ride. It's illegal to ride without insurance and registration, and the penalty for doing so could cost you in both fines and future insurance hikes.\nIn each state that requires motorcycle coverage, a minimum level of liability insurance is standard. Liability insurance covers bodily injury and property damage that you, as a motorcycle rider, cause in an accident. It does not, however, cover your injuries or any damage to your motorcycle.\nThe amount of coverage you'll need can vary. In California, for instance, a motorcyclist must carry at least $15,000 in coverage for the bodily injury or death of one person in an accident, $30,000 in coverage for bodily injury or death of at least two people in an accident and $5,000 in property coverage. On a policy, you'll typically see this listed as 15\/30\/5. But in Texas, those coverage minimums are 30\/60\/25 ($30,000 for the bodily injury or death of one person in an accident, $60,000 for injury or death of at least two people in an accident and $25,000 in property coverage). END
 TITLE: What Kind of Insurance Does a Motorcycle Need? CONTENT: What Are the Types of Motorcycle Insurance Coverage?\n----------------------------------------------------\nWhile liability insurance is standard for motorcycle insurance, other types of coverage are available and generally are optional. They include:\n*   **Collision insurance**: This covers your motorcycle if it's damaged in a collision with another vehicle or an object (a tree, for instance). This coverage pays to repair damage to your motorcycle or replace your bike. If you leased your motorcycle or are still paying back the loan on it, the lender or lease provider might require you to carry collision coverage.\n*   **Comprehensive coverage**: This pays for damage caused by something other than a collision, such as fire or theft. Like collision coverage, comprehensive coverage might be required by a lender or lease provider.\n*   **Coverage for custom parts**: In some cases, comprehensive or collision coverage will pay only for parts that the manufacturer installed. So if you add accessories such as custom paint or upgraded engine components, regular coverage might not pay for fixing or replacing these add-ons.\n*   **Medical payments coverage**: This part of a policy pays medical bills when you, the rider, suffer injuries in an accident. This coverage kicks in no matter who's at fault in the accident.\n*   **Personal injury protection (PIP)**: In some states, motorcycle insurers offer personal injury protection, known as PIP. It's similar to medical payments coverage, but its benefits are broader. If you're injured in a motorcycle accident, PIP might cover lost wages, child care expenses or funeral costs.\n*   **Uninsured\/underinsured motorist coverage**: This pays for harm to you or your property when another motorist lacks insurance altogether (uninsured) or lacks adequate insurance (underinsured). It might also cover medical bills, lost wages and property damage.\nBeyond those types of coverage, you might able to add:\n*   **Total loss coverage**: If your motorcycle is totaled, this coverage helps pay for another bike.\n*   **Roadside assistance**: This coverage pays for things like jump-starting your battery or towing your motorcycle when it breaks down on the road.\n*   **Motorcycle repair insurance**: With this coverage, also known as mechanical breakdown coverage, you're reimbursed for certain repairs to your motorcycle, such as work on the brake or transmission systems. This coverage is similar to a car warranty.\n*   **Personal belongings insurance**: This covers possessions that you carry with you, such as phones, tools or motorcycle gear, when they're damaged, lost or stolen. END
 TITLE: What Kind of Insurance Does a Motorcycle Need? CONTENT: What Do Motorcycle Insurers Look at to Determine Costs?\n-------------------------------------------------------\nCompanies consider various factors when you're deciding whether to cover your motorcycle, and the premium to charge if they do. Among them are:\n*   **Age**: For the most part, your premium will go down as you get older and more experienced as a rider.\n*   **Driving record**: Do you have speeding tickets, traffic violations or accidents in your driving history? If so, you might be charged a higher rate. Your driving record can be an indication of future behavior, and insurers like to see a spotless record.\n*   **Location**: You might pay more for coverage if you live in a warm climate with a longer motorcycle-riding season than in a cold climate with a shorter motorcycle-riding season.\n*   **Type and style of the motorcycle**: You might pay more for coverage if you've got a high-performance sportbike versus a lumbering cruiser.\n*   **Age of the motorcycle**: A new motorcycle normally costs more to insure than an older motorcycle. Why? One of the reasons is that if your bike is damaged, parts for a new motorcycle typically are more expensive than parts for an older motorcycle.\n*   **Annual mileage**: The more miles you log, the more your policy might cost. If you use your motorcycle for commuting to and from work, you're likely to pay more for coverage. If you're more of a weekend road warrior, however, you might pay less. END
 TITLE: What Kind of Insurance Does a Motorcycle Need? CONTENT: How to Get Motorcycle Insurance\n-------------------------------\nMany auto insurance companies offer motorcycle coverage. These include Allstate, GEICO, Liberty Mutual, Nationwide, Progressive and State Farm.\nWhen you're comparing quotes for motorcycle insurance from these companies or any others, be sure to study quotes for similar coverage, deductibles and limits. Also, make sure you're aware of the insurance requirements in your state and, if you have a lease or loan, the insurance requirements of your lender.\nTo get the best deal, shop around and get quotes from several insurers. END
 TITLE: What Kind of Insurance Does a Motorcycle Need? CONTENT: How to Save on Motorcycle Insurance\n-----------------------------------\nWhen you're looking for motorcycle insurance, don't overlook discounts. Here are six discounts that you should inquire about:\n1.  Training discount: You might be able to lower your premium if you've completed a motorcycle safety course.\n2.  Multiple-bike discount: If you own two or more motorcycles, you might qualify for a rate reduction.\n3.  Multi-policy discount: A number of insurers extend discounts to customers who buy several policies from them, such as motorcycle, car and home insurance.\n4.  Membership discount: You could qualify for a discount if you, for example, are a member of the military, belong to a vocational association or bank with a credit union. An insurance company may even discount your rates if you're employed by a partner company.\n5.  New customer discount: Some insurers offer a discount when you switch to them from one of their competitors.\n6.  Good driver discount: If you've gone years with an accident, an insurer might lower your premium.\nDiscounts aren't the only avenue for saving money on motorcycle insurance, though. Here are a few other ways to save:\n*   **Shop around.** Getting quotes from several insurers could wind up putting more money in your pocket in the form of lower premiums. That's because each insurer uses its own formula for setting rates. Insurance companies may view your situation differently and grant you lower rates accordingly.\n*   **Raise your deductible.** If you increase your deductible from, say, $500 to $1,000, you might be able to trim your insurance costs by hundreds of dollars a year. Keep in mind, though, that if you bump up your deductible, you might need to have more cash on hand in case you file a claim.\n*   **Strip down your coverage.** Consider buying only the minimum amount of insurance required, such as liability coverage. Doing this can also end up costing you if you file a claim in the future. END
 TITLE: What Kind of Insurance Does a Motorcycle Need? CONTENT: Enjoy the Ride\n--------------\nBuying and riding a motorcycle can be a blast in your time off, or provide efficient transportation if you commute. Just remember that in almost every state, you must maintain a minimum amount of insurance for your motorcycle. And when you're shopping for motorcycle insurance, be sure to explore all of your coverage options, check into discounts and shop around for the best rates so insuring your ride doesn't blast through your budget. END
 TITLE: How to Track Your Expenses CONTENT: Why You Should Track Your Expenses\n----------------------------------\nTracking your expenses can keep your spending on a parallel track with your income and help you avoid overspending. This goes hand in hand with setting up a budget.\nHere are four reasons why you should spend the time to track your expenses:\n1.  It gives you a clearer picture of how you're spending money. Without this insight into your finances, you might be spending more than you think. Or you could be wasting money (on an unused gym membership, for instance) that you could be putting toward an emergency fund or a retirement account.\n2.  It causes you to think before you spend. Seeing all those dollar signs when you track expenses can prompt you to ponder your purchases. Do you really _need_ that new phone or do you simply _want_ it? By giving more consideration to your spending, you might be able to avoid impulse purchases.\n3.  It helps you spot fraudulent activity. When you closely track your expenses, you can more easily catch fraudulent transactions on your credit or debit cards.\n4.  It helps you reach your financial goals. If you know where your money is going, then you can get a better handle on where to cut expenses. You can allocate this \"found\" money for your children's college fund or your special account for a down payment on a new home. END
 TITLE: How to Track Your Expenses CONTENT: It's one thing to talk about tracking your monthly expenses—it's another thing to actually do the tracking. Fortunately, a number of methods are available to guide you through the process.\nWhatever method you choose, be sure to track every expense—the daily latte from your favorite coffee shop, the once-a-week meal at the burger joint down the street, the every-two-weeks fill-up at the gas pump. You may be surprised at how quickly even small expenses can add up.\nHere's how to get started. END
 TITLE: How to Track Your Expenses CONTENT: How to Benefit From Expense Tracking\n------------------------------------\nSo, you've created a spreadsheet or downloaded an app to track your expenses. Now what do you do with all that data?\nIf you're tracking your expenses to find areas where you may be able to cut back or add to your savings, the best use is as the foundation for a budget. Just like tracking your expenses, creating a budget can be done with paper and pencil, spreadsheets, online accounts or apps. To ensure you stick to your budget, adopt whatever budgeting method works for you—there's no right or wrong way to do it. END
 TITLE: How to Track Your Expenses CONTENT: Why You Should Create a Budget\n------------------------------\nYou often hear about the importance of creating a budget. But why should it be a key part of your financial plan? Establishing a budget, and then sticking to it, allows you to:\n*   **Spend less than what you earn.** Living within your means is much easier to do if you have a budget. Without one, you might not fully understand whether you're overspending—or just how much your overspending might be costing you.\n*   **Reduce debt.** A budget helps you identify essential and nonessential expenses, an exercise that lets you spot areas where you can trim spending and allocate that money to slash your debt.\n*   **Set aside money.** Relying on a budget puts you on the path toward saving money for a variety of purposes, such as bulking up your retirement accounts or adding to an emergency fund.\n*   **Realize your financial goals.** Is there a bucket-list trip in your future? Do you want to have enough money to send your kids to college? A budget can help you accomplish these and other financial goals. END
 TITLE: How to Track Your Expenses CONTENT: How to Make a Budget\n--------------------\nEquipped with information about your spending, you can set up a budget. Aside from tracking your spending, here are three steps for getting it done:\n1.  Figure out your income. Comb through pay stubs, bank statements and other documents to get a firm grasp of your monthly income. This money should include salary, government benefits, investment gains and side-gig cash—anything that could be classified as income.\n2.  Separate essential and nonessential costs. Divide your tracked expenses into categories, creating buckets for recurring essential expenses like rent, utility and car payments, and also for discretionary spending, such as travel, restaurants, streaming subscriptions, clothes purchases and the like. You can lump all of your recurring essential expenses into a single category or divide them into separate categories, such as housing costs and automotive expenses; you can do the same with discretionary spending.\n3.  Settle on your goals. With a broad view of your income, expenses and spending habits, decide on your financial goals. Do you want to retire at age 60? Do you want to buy a house within the next two years? Do you need to set aside more money for emergencies? Once you know your goals, you can use your budget to help you reach them. END
 TITLE: How to Track Your Expenses CONTENT: How to Reach Your Financial Goals\n---------------------------------\nOnce you have a budget and know your goals, consider these two tips to help you achieve them. They are critical in the midst of a rocky economy, but can be applied during any economic situation.\n1.  Embrace frugal living. Among the moves you can make to put more money in your pocket are:\n*   Shop around for cheaper internet service.\n*   Refinance your mortgage to get a lower interest rate.\n*   Cancel unused subscriptions and memberships (like those for streaming services or the gym).\n*   Cut back on restaurant meals.\n*   Buy clothes only when they're on sale.\n*   Take on DIY home improvement projects rather than hiring pros to do them.\n2.  Spend less. Ways to trim your spending include:\n*   Consolidate your credit card debt. By swapping out higher-interest debt for lower-interest debt, you likely can chop down your annual interest payments and save more over time. You could do this by transferring a balance from a higher-interest credit card to a lower-interest card or one with a 0% introductory interest rate. You could also consider taking out a personal loan that carries an interest rate that's lower than the rate(s) you're currently paying on your credit card debt.\n*   Shop around for insurance. You might be able to lower your auto or homeowners insurance premiums if you compare rates from several insurers. You also should explore insurance discounts, such as those for maintaining a good driving record or for bundling your policies with one insurer.\n*   Take a timeout before making a big purchase. Are you coveting a new car? Have you been dying to buy new furniture for your bedroom? Before you put down your hard-earned money on a large purchase, stop and think about whether you really need it, or if you might be able to find a workable used car or second-hand furniture. If you can use the extra money in your budget to save for those purchases, you could avoid paying interest on them—and you might even realize you don't need them at all. END
 TITLE: How to Track Your Expenses CONTENT: Don't Forget to Check Your Credit\n---------------------------------\nOnce you've built a system for tracking your expenses and creating a budget, be sure to also monitor your credit. This could include regularly checking your credit report or signing up for free credit monitoring and can be especially helpful if you're planning a big purchase in the near future, such as a house or a car.\nKeeping on top of your credit can, for instance, give you an idea of whether you should work to improve your credit score before applying for any new credit. END
 TITLE: 5 Bad Money Habits and How to Break Them CONTENT: 1\\. Not Spending Wisely\n-----------------------\nAmericans spend nearly $18,000 a year on nonessential stuff on average, according to a 2019 survey from life insurance company Ladder. That works out to nearly $50 a day. This amount covers everything from dinner out at a restaurant and happy hour with friends to bottled water and cups of to-go coffee.\nNonessential spending leaves less money to put toward essential items, like making mortgage or rent payments, reducing credit card debit, paying off student loans or setting aside money for retirement. Nonessential spending is not something you have to eliminate entirely to improve your finances. In fact, it's part of just about every healthy budget and happy lifestyle. But taking a look at it and cutting back where you can is a great first step. END
 TITLE: 5 Bad Money Habits and How to Break Them CONTENT: 2\\. Not Setting Aside Money for Emergencies\n-------------------------------------------\nEmergency expenses have a way of popping up when you least expect them. Whether it's a broken leg, two flat tires or a sick cat, an emergency can easily set you back thousands of dollars. If you haven't built up much of an emergency fund, those costs could affect your budget for years to come.\nThe lack of an emergency fund can put you in a difficult financial situation. It might, for instance, require you to pay a hospital tab with a high-interest credit card or put you behind on your rent. Ultimately, it can force you to decide which bills to pay and which bills to skip, which is never a good position to be in. But don't beat yourself up if you lack an emergency fund. It's estimated that 25% of Americans don't have a single penny in emergency savings. END
 TITLE: 5 Bad Money Habits and How to Break Them CONTENT: 3\\. Not Getting a Handle on Credit Card Spending\n------------------------------------------------\nAs of May 2020, Americans on average had about $5,300 in credit card debt, according to Experian data. While some may have no trouble tackling that amount of debt, others may find it difficult. Out-of-control credit card spending can lead to some major problems.\nAmong other things, charging too much on your credit cards can:\n*   Run up high-interest credit card debt.\n*   Give you a false sense of how much money you've got available to spend.\n*   Steer cash away from your emergency fund.\n*   Siphon money away from your retirement savings.\n*   Damage your credit score.\n*   Lead to a bankruptcy filing.\nDon't feel bad if you've gone overboard with credit card spending, though. You've got many options before you when it comes to turning it around. END
 TITLE: 5 Bad Money Habits and How to Break Them CONTENT: 4\\. Not Saving for the Future\n-----------------------------\nAt some point, you might want to buy a house. Or maybe you hope to put your kids through college. And, chances are, you'd like to someday retire. These goals typically require years of planning, and decades of saving.\nHowever, many Americans aren't prepared for the future. When it comes to retirement, for instance, 22% of Americans 25 and older have less than $5,000 saved for retirement and 15% have no retirement savings at all, according to a 2019 survey by Northwestern Mutual. If you find yourself in this boat, know that you're definitely not the only passenger.\nPossible consequences of not saving for the future include:\n*   Not being able to afford a house.\n*   The inability to contribute much to your kids' college education.\n*   A delayed retirement. END
 TITLE: 5 Bad Money Habits and How to Break Them CONTENT: 5\\. Not Sticking to a Budget—or Not Even Creating One\n-----------------------------------------------------\nNot setting up a budget—or not sticking to one that you already have—removes a key to controlling your finances and ensuring your short-term and long-term financial needs are met. A budget drives your financial decisions and serves as a map that points you in the right direction. END
 TITLE: What Is a Government Loan? CONTENT: How Do Government Loans Work?\n-----------------------------\nWhen the government lends money to individuals, it usually doesn't do it directly. Instead, it guarantees those loans issued by banks, credit unions and other private lenders. This guarantee protects the lender if the borrower fails to repay the loan.\nIn some cases, however, a government loan does indeed come directly from Uncle Sam. For instance, the U.S. Department of Agriculture (USDA) might lend money directly to a farmer or rancher using money appropriated by Congress as part of the USDA budget. The USDA may issue and service the loan without help from a private lender.\nFurthermore, a government loan may be subsidized or unsubsidized. For example, the federal government pays the interest on a subsidized student loan that's accrued while you're in school, but with an unsubsidized student loan, you're always responsible for paying the interest.\nWhy does the government support loans? The reasons include the potential to offer:\n*   Lower interest rates compared with private loans.\n*   Better odds of being approved versus private loans.\n*   Capital for business owners who might not be able to secure it through private loans.\n*   Flexible repayment and forgiveness plans.\n*   No credit checks. END
 TITLE: What Is a Government Loan? CONTENT: Types of Government Loans\n-------------------------\nGovernment loans serve an array of purposes. Here are five common types.\n1.  Student loans: Several loan programs, including direct PLUS loans, Perkins Loans and Stafford Loans, help students or their parents cover college tuition and related expenses.\n2.  Business loans: Several business loan programs, overseen primarily by the U.S. Small Business Administration (SBA), help businesspeople start or grow their enterprises, or recover from disasters. The most popular kind of SBA loan is known as an 7(a) loan.\n3.  Home loans: Numerous mortgage programs for homebuyers and homeowners fall into this category, including federally backed home loans, disaster loans and home improvement loans. A popular type of federal housing loan is a mortgage from a lender approved by the Federal Housing Administration (FHA), otherwise known as an FHA loan.\n4.  Agriculture loans: This category includes loans that help farmers and ranchers run or expand their operations.\n5.  Veterans loans: The U.S. Department of Veterans Affairs (VA) offers several loan programs for military veterans who are homeowners or homebuyers. END
 TITLE: What Is a Government Loan? CONTENT: What Are the Benefits of Government Loans?\n------------------------------------------\nGovernment loans may provide several advantages over private loans, but the benefits differ depending on the type of loan. Here are some of the benefits three common types of government loans have over private loans: END
 TITLE: What Is a Government Loan? CONTENT: Who Is Eligible for Government Loans?\n-------------------------------------\nEligibility varies based on what type of government loan you're seeking.\nFor a federal student loan, a student must meet a number of criteria, such as being a U.S. citizen or eligible noncitizen, being enrolled in or accepted for an eligible degree or certificate program and maintaining \"satisfactory\" academic progress as measured by the school. With an SBA loan, you must be in business in the U.S., tap into other financial resources before trying to borrow money, and operate outside prohibited sectors such as gambling, lending and real estate investing.\nCredit scores also may be an eligibility component on some government loans. You don't need to have even established a credit history to obtain a federal student loan, for example, but a federal FHA mortgage might be only available to borrowers with a FICO Credit Score of 500 or better.\nOther requirements exist as well: VA loans, for example, require that you be a veteran, a veteran's spouse, or the surviving spouse of a veteran. You may also be eligible if you were previously a cadet attending the U.S. Military, Air Force or Coast Guard academy.\nTo figure out whether you qualify a government loan, visit [GovLoans.gov](;qc=cat_1). END
 TITLE: What Is a Government Loan? CONTENT: What to Do if You Can't Get a Government Loan\n---------------------------------------------\nThere are many alternatives available to those unable to qualify for a government loan. For example:\n*   **Mortgage loans**: If you can't get an FHA loan, you might qualify for a Fannie Mae HomeReady mortgage or a Freddie Mac Home Possible mortgage, both of which offer a down payment as low as 3%. Or, you can apply for other conventional mortgages from banks, credit unions and other lenders.\n*   **Student loans**: Still searching for a student loan after not qualifying for a government loan? You might look into a student loan from a bank, an online lender or another private lender.\n*   **Small business loans**: Did you strike out with a business loan from the SBA? Other sources of business financing include banks, credit unions, online lenders, crowdfunding platforms, credit cards, and even family and friends. END
 TITLE: A Guide to Contacting Your Lender CONTENT: When to Contact Your Lender\n---------------------------\nAny number of scenarios might arise that prompt you to contact a lender. You might want to get in touch with some or all of your lenders if you:\n*   Are confused about information on a billing statement.\n*   Think you'll miss a payment or already have missed a payment. If you're experiencing short-term or long-term financial problems, a lender might be willing to provide relief, such as working out a payment plan for your mortgage. This is especially important if you lost your job or are suddenly unable to work.\n*   Need to update your mailing address. This way, you don't miss billing statements and other important notifications sent by a lender.\n*   Need to update your name.\n*   Want to change your payment due date.\n*   Changed financial institutions and need to update your automatic payment plan.\nYou may also have an issue with a particular loan or credit card that you'd like to resolve. Here's a breakdown of scenarios based on the type of credit product. END
 TITLE: A Guide to Contacting Your Lender CONTENT: Where to Find a Lender's Contact Information\n--------------------------------------------\nGenerally, you should be able to find a lender's contact information on its website. This includes a lender's phone numbers, mailing addresses, and email addresses. But you might be able to find it in other places. For instance, contact information typically:\n*   Pops up when you hunt for it on Google or another search engine.\n*   Appears on the back of a credit card.\n*   Shows up on monthly statements.\nIn addition, you can check your credit report for phone numbers and mailing addresses of creditors, such as credit card issuers and mortgage lenders. Keep in mind that the names of some creditors might look a little unusual on a credit report. For instance, if you have a Target credit card, it might be listed on your credit report as TD Bank USA\/Target. TD Bank is the card issuer, and Target is the retail brand associated with the card.\nFor student loans backed by the federal government, you can find a list of student loan servicers on the financial aid website of the U.S. Department of Education. You also can call the Federal Student Aid Information Center at 800-433-3243. END
 TITLE: A Guide to Contacting Your Lender CONTENT: The Best Ways to Contact Your Lender\n------------------------------------\nThe best way to reach out to lenders depends on the circumstances. In some cases, you might be able to resolve a situation just by clicking on a lender's website or mobile app. This could include tasks such as changing your mailing address or setting up a travel alert with a credit card issuer.\nYour lender might also offer an online chat feature where you can quickly get real-time answers to simple or even complicated questions.\nSome situations might require a phone call, however. It's best to pick up the phone and talk to a representative if you're:\n*   Asking for financial help: If you're experiencing financial problems and can't make your debt payments, your best bet is to call the lender (sooner rather than later). Contacting the lender as soon as possible enables you to quickly work out solutions, such as devising a payment plan or temporarily halting payments, before you miss your payment.\n*   Reporting a lost or stolen credit card: Act fast to prevent unauthorized charges from being racked up.\n*   Disputing a charge on your credit card: While a phone call is usually sufficient in this case, keep in mind that your rights might not be fully protected unless you file the dispute by mail. This involves flagging unauthorized use, reporting billing errors or stopping a payment. Check with your card issuer to ensure you're following their protocols.\n*   Requesting a lower interest rate\n*   Seeking a lower monthly payment\n*   Inquiring about bumping up your credit limit\n*   Asking for fee waivers\n*   Closing a credit card account: Want to close your credit card account? Your options here are to call the card issuer or request the closure through a secure online message.\nContacting your lender can be necessary in certain situations. Knowing when and how to reach out is the first step to resolving any problems with your creditors. END
 TITLE: What Is Right of Offset? CONTENT: Right of Offset Defined\n-----------------------\nGenerally, a bank or credit union can take your money from a deposit account, like a checking or savings account, to cover a separate debt you owe to the same bank or credit union if you've fallen behind on making payments. But that right doesn't necessarily extend to every type of debt. For example, a bank typically could use the right of offset to cover an overdue payment on a mortgage or auto loan but not to cover an overdue payment on a credit card.\nRight of offset also is known as right of setoff.\nWhen a financial institution transfers money under its right of offset, that action might lead to interest penalties on a CD, bounced checks or even a negative account balance. END
 TITLE: What Is Right of Offset? CONTENT: When a Bank Might Exercise Right of Offset\n------------------------------------------\nFinancial institutions normally include right of offset language in the agreement you sign when you open a checking account, savings account or CD.\nKeep in mind that this language may differ from one institution to another. Credit unions often enjoy more leeway in exercising the right of offset than banks do. That could mean, for instance, that a credit union could seize your money to pay a credit card debt while it's normally illegal for banks to do that.\nIn some cases, this language might give a bank or credit union permission to take money not only from an individual account that's in your name only but also from a joint account that you have with someone else. If it's a joint account, the financial institution might withdraw money to cover a debt owed by any joint owner of the account.\nA financial institution might even apply the right of offset to government payments deposited into your account, such as Social Security benefits.\nThe right of offset doesn't apply to tax-deferred retirement accounts like IRAs. END
 TITLE: What Is Right of Offset? CONTENT: Your Rights as an Account Holder\n--------------------------------\nIf the documents you signed when you opened a checking account, savings account or CD included a right of offset agreement, then you've permitted the financial institution to take your money to pay a debt under the terms outlined in the agreement. The agreement is a legal contract and you're subject to it as long as you're an account holder.\nIn some cases, you might not even learn that your bank or credit union has exercised its right of offset until after the fact. The agreement doesn't, however, open the door for a financial institution to pull money from your account whenever it wants. For instance, federal law prohibits a federally chartered bank from using the right of offset to pay your overdue credit card bill.\nState laws might also limit a bank's or credit union's right of offset. This is the case in California, where a financial institution can't push your balance below $1,000 when it pulls money from your account to cover a debt. Some states also prohibit draining government benefits like Social Security or unemployment in a right of offset action. END
 TITLE: What Is Right of Offset? CONTENT: How to Respond to a Right of Offset\n-----------------------------------\nIf a bank or credit union legally pulled money from your account to cover a debt, such as an overdue payment on an auto loan, then there's not much you can do.\nBut you can prevent further offsets by making sure you're up to date on paying the debt. Another way to avoid offsets: Move your checking account, savings account or CD to a different financial institution—one where a lender can't touch your money under a right of offset scenario.\nIf you think a bank or credit union has wrongly taken money from one of your accounts to cover a debt, you might consider consulting an attorney about your legal rights. You also might contact the federal Consumer Financial Protection Bureau, the Consumer Assistance Group within the U.S. Comptroller's Office or the consumer division of your state attorney general's office. END
 TITLE: What Is Right of Offset? CONTENT: How to Work With Your Bank to Resolve the Issue\n-----------------------------------------------\nIf you're unable to make a debt payment, contact your bank or credit union to see whether you can work out a repayment plan. The financial institution might be willing to come up with a plan if, say, you lost your job and have run into financial trouble.\nThe smartest approach is to be upfront with your financial institution rather than trying to avoid the issue. END
 TITLE: Are Online Savings Accounts Safe? CONTENT: What Is an Online Savings Account?\n----------------------------------\nAn online savings account lets you conduct your banking from anywhere you can connect to the internet and at any time. You can open an account or transfer funds online, for instance, without the need to visit a branch of a bank or credit union. But since many online savings accounts are offered by companies that don't have brick-and-mortar branches, you wouldn't be able to do in-person banking even if you wanted to—a potential drawback for some.\nMany traditional banks and credit unions that operate brick-and-mortar branches also provide online accounts. However, online-only banks may offer features and options that make their savings accounts stand out.\nMajor differences between online-only banks (also called internet banks) and traditional banks include:\n*   Online banks don't have branches that you can visit, while traditional banks do. So if you're a customer of an online bank, you can get customer service help online but not in person.\n*   Online banks normally don't allow you to deposit cash, while traditional banks do.\n*   Online banks frequently offer higher interest rates than traditional banks do.\n*   Online banks usually charge lower fees than traditional banks do.\n*   Online banks often don't require a minimum balance, but many traditional banks do.\n*   Online banks might make it tougher to get quick access to your money than traditional banks. In part, that's because it might take a few days to transfer money between an online savings account and an account at another financial institution.\n*   Online banks might not let you write checks, whereas traditionally banks usually do.\nAmong the well-known names in online-only banking are Ally Bank, American Express Bank, Discover Bank, Marcus by Goldman Sachs and Synchrony Bank. END
 TITLE: Are Online Savings Accounts Safe? CONTENT: How Secure Are Online Savings Accounts?\n---------------------------------------\nOnline savings accounts generally are safe and secure, but there are a few steps you should take before you choose a company to bank with. You'll first want to make sure to check whether it's backed by the Federal Deposit Insurance Corp. (FDIC). You can look for the FDIC logo on the bank's website or search the FDIC's BankFind database to learn more about its FDIC status. One of the risks of online banking is that criminals have set up a fake online banking website to siphon money from unsuspecting victims, but a quick check could prevent you from falling victim.\nOnline savings accounts are usually insured by the FDIC, just like traditional banks. If a bank carries FDIC insurance, your account is automatically insured. FDIC insurance covers your deposits up to $250,000 if the bank fails.\nIn terms of security, many online banks strive to keep your personal information out of the hands of hackers and identity thieves. They can't, however, prevent a hacker from getting hold of your account information through means beyond their control, such as if you access your account from an unsecured public Wi-Fi hotspot. When you use an online bank, be sure to adhere to safe internet use practices, including creating a unique and secure password, being careful about the networks you connect to and avoiding phishing attempts. END
 TITLE: Are Online Savings Accounts Safe? CONTENT: Benefits of Online Savings Accounts\n-----------------------------------\nOnline savings accounts deliver several benefits:\n1.  You can often find higher interest rates and lower fees with an online savings account than a traditional savings account. Since online-only banks save money by not occupying brick-and-mortar spaces or employing tellers to staff bank branches, they're often able to provide higher interest rates and charge lower fees. You might see an interest rate on a savings account that's 1.25%, for example. You can designate that money for an array of purposes, such as an emergency fund or a vacation fund.\n2.  Anywhere and anytime, you can access your account on your computer, smartphone or tablet. (Many traditional banks also offer round-the-clock account access online, but their physical branches aren't open all day.)\n3.  Online banks often offer feature-rich mobile banking apps (as do a lot of traditional banks).\n4.  Since they're tech-focused, an online bank might be faster to adopt new features than a traditional bank would.\n5.  Some consumers report they're happier with the customer service provided by online banks than by traditional banks. In part, that's because some low-overhead online banks can invest more money in customer service. END
 TITLE: Are Online Savings Accounts Safe? CONTENT: Drawbacks of Online Savings Accounts\n------------------------------------\nOnline savings accounts can be attractive to many, but their drawbacks could cause you to look elsewhere for your banking needs:\n1.  You can't get face-to-face customer service at a physical branch.\n2.  When an online bank's system goes down, you won't be able to access your account.\n3.  Online banks normally don't have their own ATMs, although they might provide access to an independent ATM network and reimburse any ATM fees.\n4.  Online banks might not offer certain services, such as mortgage loans, that their traditional bank counterparts do.\n5.  If you want to withdraw cash, you might be hit with a daily withdrawal limit at an ATM. By contrast, a teller at a brick-and-mortar bank branch could hand you more cash with less hassle.\n6.  You typically can't deposit or withdraw cash unless you use an ATM affiliated with the online bank.\n7.  Online banks generally haven't been in business as long as traditional banks have, so customer sentiment may be harder to nail down. END
 TITLE: How Can I Stop Foreclosure? CONTENT: Ways to Avoid a Foreclosure\n---------------------------\nOnce a homeowner starts missing payments, a notice of default represents the first step in the foreclosure process. Some lenders send this notice to the borrower as a formal warning that the home will be seized if overdue mortgage payments aren't brought up to speed by a certain date. This window of time is known as pre-foreclosure.\nSo, if your home has gone into pre-foreclosure (or you fear it soon will), what are your options for keeping your home? Here are a few of them.\n*   **Reach out to the lender or loan servicer about a remedy as soon as possible.** You may be able to reach an agreement on a payment plan, a temporary forbearance or a modification of the loan terms. With a payment plan, you may be able to work out a way to catch up on past-due payments. A forbearance lets you temporarily make lower mortgage payments or pause mortgage payments. An example of modification is reducing the monthly mortgage payments. If at all possible, reach out to your lender before you start missing payments.\n*   **Sell your home.** Before your home is seized, you may be able to sell it to satisfy the mortgage debt. If the home winds up selling for less than what you owe, this is known as a \"short sale.\"\n*   **File for bankruptcy.** Seeking Chapter 7 bankruptcy merely delays a foreclosure. On the other hand, Chapter 13 bankruptcy may let you catch up on past-due payments and keep your home. Chapter 7 bankruptcy wipes out most or even all of your debts, while Chapter 13 bankruptcy creates a plan for repayment of some or all of your debts. Before you forge ahead with this option, though, consider the severe consequences bankruptcy has on finances and creditworthiness, as it may be hard to recover from.\n*   **Agree to a deed in lieu of foreclosure.** A deed in lieu of foreclosure allows a homeowner to hand over their house to a lender in exchange for avoiding foreclosure.\nGetting and staying current on your mortgage payments is the most obvious way to avoid a foreclosure, but this can be difficult, especially when you're already behind on payments. If you're experiencing financial hardship due to the pandemic or otherwise, you may be able to find financial assistance that helps you take care of bills and other needs so you can more easily afford your mortgage payment (more on that later). Picking up part-time work, cutting expenses and getting a handle on your debt are additional moves you can make to help you keep your head above water and prevent your home from being foreclosed. END
 TITLE: How Can I Stop Foreclosure? CONTENT: How Does a Foreclosure Impact Your Credit?\n------------------------------------------\nBesides bankruptcy, foreclosure is one of the worst things that can happen to your credit. That impact doesn't last forever, though. These are some of the ways a foreclosure plays a role in your credit:\n*   **Lower credit score**: The appearance of a foreclosure on your credit report can bring down your credit score. How much your score drops depends on several factors, such as what you score was before foreclosure and how many other negative marks show up on your credit report. The missed payments leading up to foreclosure also will have a negative effect on your credit.\n*   **Limited access to credit**: For several years after a foreclosure, your ability to qualify for a credit card, loan or other lending product may be restricted.\n*   **Long-term negative impact on credit report**: Missed mortgage payments and foreclosure will be reflected on your credit report for seven years. After the seven-year period ends, the foreclosure will be removed from your credit report and will no longer affect your scores.\n*   **Difficulty securing another mortgage loan**: Even if your credit score has recovered in the time since your foreclosure, its presence on your credit report could disqualify you from getting a mortgage loan in the future. Some lenders won't consider approving a borrower if there's a recent foreclosure in their credit history. If you are approved, expect to pay higher interest rates or extra fees. END
 TITLE: How Much Money Can You Save by Being Frugal? CONTENT: Create a Budget and Stick to It\n-------------------------------\nWant to live the frugal life and spend less money? If so, the first step you should take is creating a budget. A budget can put you on the path toward frugality by helping guide your spending and saving habits.\nWhy is building a budget important? Here are five things a budget can help you do:\n1.  Pay off debt. A budget can help you figure out how much money to allocate toward paying off debt and how long it'll take to accomplish that. Paying off debt will save you money on interest that you'd otherwise pay to a lender.\n2.  Live within your means. If you're spending more money than you're taking in each month, you're not alone. A budget can help you flip that scenario and leave you with some financial wiggle room at the end of the month. When money is less tight, you can focus more clearly on paying your bills and taking care of other financial needs.\n3.  Save money. A budget gives you a cleaner picture of your finances, including how much money you can afford to designate toward savings. Following a budget can help you put money away in an emergency fund, set some aside for your child's college education, save for a down payment on a home or use it for other purposes.\n4.  Reach your financial goals. Do you dream of retiring at 55? Are you itching to travel around the world? Do you want to wipe out your student loan debt within two years? A budget can help you prioritize your saving and spending so that you can get closer to attaining your short-term and long-term financial goals.\n5.  Cut back on financial fights. It's no secret that many couples argue about money. Setting up a budget can reduce the financial tension between you and your partner by enabling the two of you to see eye to eye on how you'll spend and save your money.\nHow Do You Create a Budget?\n---------------------------\nTo get started with budgeting, you'll want to figure out your income, analyze your expenses, establish financial goals and monitor your spending. Creating a budget could be as simple as writing down this information in a notebook or plugging it into a computer spreadsheet.\nThere are even plenty of helpful budgeting apps out there, including the personal finance management tool from Experian. To use this tool, log in to your Experian account and click \"Personal Finances\" at the bottom of the page. The tool connects to your bank account and helps you plainly see your income and expenses.\nKeep in mind that budgeting will pay off only if you stay on top of it. At the end of every month, it's important to review your spending to see how it lined up with your budget. If it didn't, it's worth taking the time to review how it differed and adjust either your spending or your budget. It's possible, for instance, you could underestimate what you spend on groceries but overestimate how much you spend on gas.  \nSave Money on Day-to-Day Expenses\n---------------------------------\nOne of the best ways to adopt a frugal lifestyle and save money is to comb through your daily purchases and see what can be trimmed. When you're looking to curtail your spending, here are five common categories to consider for budget cuts.\n1.  Groceries: Who doesn't want to save money at the grocery store? In May 2020, the typical four-member household in the U.S. spent anywhere from $679 to $1,350 per month on groceries, according to the U.S. Department of Agriculture. And it's common for a portion of those groceries to be thrown away due to spoilage. To cut costs and get the most out of your food purchases, come up with a weekly meal plan so that you and everybody else in your household stays on track and eats everything you buy. Clipping coupons and using price comparison apps are two more easy ways to trim your monthly grocery bill.\n2.  Transportation: For many of us, gassing up our cars is a big transportation expense. Regarding gas, you can curb costs by turning to a price comparison app like GasBuddy or using a credit card that rewards you for gas purchases. Other avenues for saving on transportation include carpooling, working at home instead of the office or commuting via public transit.\n3.  Entertainment: Cutting cable is one of the easiest approaches to reducing your entertainment spending. After you do that, you could switch to a cheaper video-streaming setup (think Netflix and Hulu) or you could downgrade to basic service.\n4.  Dining: According to one calculation, the average American could pocket nearly $37 per week by swapping all restaurant meals for home-cooked meals. But if you can't bear the thought of never eating restaurant food again, there are other ways to cut the fat from this part of your budget. You could, for instance, always fix breakfast in your kitchen, prepare your workday lunch at home and only sometimes eat food from a restaurant. It might be hard, but consider also giving up your daily caffeine fix from Starbucks and switch to coffee brewed at home.\n5.  Clothing: You might button up your apparel budget by keeping an eye out for sales, checking out coupon apps, hunting for deals at thrift stores, or searching the shelves and racks at discount retailers. To avoid shopping altogether, pick up a needle and thread and mend clothes that can be repaired.\nReduce Your Monthly Bills\n-------------------------\nYou might not pay much attention to them, but your monthly bills present plenty of opportunities for savings. Here are three common monthly expenses that you might be able to adjust.\n1.  Utilities and similar services: We often take these expenses for granted and don't give them much thought. However, taking a closer look could yield significant savings. For instance, you might save money on your cellphone service by shopping around for a better deal with a different carrier. You also can cut costs by putting off buying a new cellphone. Other ways to reduce your utility bills include shopping around for cheaper internet service, installing a more efficient programmable thermostat, unplugging unused devices and upgrading to energy-efficient appliances.\n2.  Housing: Keeping a roof over your head is probably your costliest monthly expense. So, how do you decrease your housing overhead? Among the things you might weigh are refinancing your mortgage to a lower interest rate (and a lower monthly payment), downsizing to a smaller place, renting out an unused room, getting a roommate, renegotiating your rent or relocating to a lower-cost area.\n3.  Recurring monthly costs and subscriptions: Particularly if these recurring expenses are automatically paid every month, you might forget just how much you're spending on them. Go through your bank account and see which costs recur on a monthly basis. Then ask yourself: Am I using what I'm paying for? For example, you might not have worked out at the gym for three months, yet you're still paying for a monthly membership. Or you might be paying for more video-streaming services than you realized. Do you really need every one of them? To rein in recurring monthly expenses, go through your budget to uncover and then cancel ones that you can do without.\nFind Time for DIY Projects\n--------------------------\nTo fully embrace the frugal life, you might elevate yourself to do-it-yourself guru status. Before you make an appointment with a plumber or order a replacement appliance, figure out whether you can fix or make things on your own. Here are four ways to transform into a DIY ace.\n1.  Tackle home projects. If the toilet is leaking or the basement needs a makeover, you might be able to save piles of money going the DIY route. If you're not up to speed on DIY know-how, YouTube features tons of how-to videos.\n2.  Create your own household products. You might be loyal to certain soaps or detergents, but homemade alternatives can save you some cash. It's fairly simple to make your own laundry detergent, household cleaners, dish soap, fabric softener and similar products using off-the-shelf ingredients.\n3.  Whip up your own personal-care products. Among the personal-care supplies that you can make at home are deodorant, shampoo, hair conditioner, mouthwash, body wash and shaving cream.\n4.  Fix damaged clothing. Skip the tailor! When a button on a shirt needs to be replaced, a hole in a pair of pants needs to be patched or the zipper on a pair of jeans needs to be repaired, you can salvage those clothes at home and avoid buying new ones.\nThe Bottom Line\n---------------\nBeing frugal can pay off, whether it involves living within your means, paring your spending on groceries, refinancing your mortgage or adopting a DIY attitude. There is no one way to live frugally, but there is one huge advantage to doing it: Saving money so you can become more financially secure.\nWhether you use this newfound financial security to save for the future or take a well-deserved vacation, you'll be glad you took the time to think about how you can save. END
 TITLE: How Much Money Can You Save by Being Frugal? CONTENT: How Do You Create a Budget?\n---------------------------\nTo get started with budgeting, you'll want to figure out your income, analyze your expenses, establish financial goals and monitor your spending. Creating a budget could be as simple as writing down this information in a notebook or plugging it into a computer spreadsheet.\nThere are even plenty of helpful budgeting apps out there, including the personal finance management tool from Experian. To use this tool, log in to your Experian account and click \"Personal Finances\" at the bottom of the page. The tool connects to your bank account and helps you plainly see your income and expenses.\nKeep in mind that budgeting will pay off only if you stay on top of it. At the end of every month, it's important to review your spending to see how it lined up with your budget. If it didn't, it's worth taking the time to review how it differed and adjust either your spending or your budget. It's possible, for instance, you could underestimate what you spend on groceries but overestimate how much you spend on gas. END
 TITLE: How Much Money Can You Save by Being Frugal? CONTENT: Save Money on Day-to-Day Expenses\n---------------------------------\nOne of the best ways to adopt a frugal lifestyle and save money is to comb through your daily purchases and see what can be trimmed. When you're looking to curtail your spending, here are five common categories to consider for budget cuts.\n1.  Groceries: Who doesn't want to save money at the grocery store? In May 2020, the typical four-member household in the U.S. spent anywhere from $679 to $1,350 per month on groceries, according to the U.S. Department of Agriculture. And it's common for a portion of those groceries to be thrown away due to spoilage. To cut costs and get the most out of your food purchases, come up with a weekly meal plan so that you and everybody else in your household stays on track and eats everything you buy. Clipping coupons and using price comparison apps are two more easy ways to trim your monthly grocery bill.\n2.  Transportation: For many of us, gassing up our cars is a big transportation expense. Regarding gas, you can curb costs by turning to a price comparison app like GasBuddy or using a credit card that rewards you for gas purchases. Other avenues for saving on transportation include carpooling, working at home instead of the office or commuting via public transit.\n3.  Entertainment: Cutting cable is one of the easiest approaches to reducing your entertainment spending. After you do that, you could switch to a cheaper video-streaming setup (think Netflix and Hulu) or you could downgrade to basic service.\n4.  Dining: According to one calculation, the average American could pocket nearly $37 per week by swapping all restaurant meals for home-cooked meals. But if you can't bear the thought of never eating restaurant food again, there are other ways to cut the fat from this part of your budget. You could, for instance, always fix breakfast in your kitchen, prepare your workday lunch at home and only sometimes eat food from a restaurant. It might be hard, but consider also giving up your daily caffeine fix from Starbucks and switch to coffee brewed at home.\n5.  Clothing: You might button up your apparel budget by keeping an eye out for sales, checking out coupon apps, hunting for deals at thrift stores, or searching the shelves and racks at discount retailers. To avoid shopping altogether, pick up a needle and thread and mend clothes that can be repaired. END
 TITLE: How Much Money Can You Save by Being Frugal? CONTENT: Reduce Your Monthly Bills\n-------------------------\nYou might not pay much attention to them, but your monthly bills present plenty of opportunities for savings. Here are three common monthly expenses that you might be able to adjust.\n1.  Utilities and similar services: We often take these expenses for granted and don't give them much thought. However, taking a closer look could yield significant savings. For instance, you might save money on your cellphone service by shopping around for a better deal with a different carrier. You also can cut costs by putting off buying a new cellphone. Other ways to reduce your utility bills include shopping around for cheaper internet service, installing a more efficient programmable thermostat, unplugging unused devices and upgrading to energy-efficient appliances.\n2.  Housing: Keeping a roof over your head is probably your costliest monthly expense. So, how do you decrease your housing overhead? Among the things you might weigh are refinancing your mortgage to a lower interest rate (and a lower monthly payment), downsizing to a smaller place, renting out an unused room, getting a roommate, renegotiating your rent or relocating to a lower-cost area.\n3.  Recurring monthly costs and subscriptions: Particularly if these recurring expenses are automatically paid every month, you might forget just how much you're spending on them. Go through your bank account and see which costs recur on a monthly basis. Then ask yourself: Am I using what I'm paying for? For example, you might not have worked out at the gym for three months, yet you're still paying for a monthly membership. Or you might be paying for more video-streaming services than you realized. Do you really need every one of them? To rein in recurring monthly expenses, go through your budget to uncover and then cancel ones that you can do without. END
 TITLE: How Much Money Can You Save by Being Frugal? CONTENT: Find Time for DIY Projects\n--------------------------\nTo fully embrace the frugal life, you might elevate yourself to do-it-yourself guru status. Before you make an appointment with a plumber or order a replacement appliance, figure out whether you can fix or make things on your own. Here are four ways to transform into a DIY ace.\n1.  Tackle home projects. If the toilet is leaking or the basement needs a makeover, you might be able to save piles of money going the DIY route. If you're not up to speed on DIY know-how, YouTube features tons of how-to videos.\n2.  Create your own household products. You might be loyal to certain soaps or detergents, but homemade alternatives can save you some cash. It's fairly simple to make your own laundry detergent, household cleaners, dish soap, fabric softener and similar products using off-the-shelf ingredients.\n3.  Whip up your own personal-care products. Among the personal-care supplies that you can make at home are deodorant, shampoo, hair conditioner, mouthwash, body wash and shaving cream.\n4.  Fix damaged clothing. Skip the tailor! When a button on a shirt needs to be replaced, a hole in a pair of pants needs to be patched or the zipper on a pair of jeans needs to be repaired, you can salvage those clothes at home and avoid buying new ones. END
 TITLE: What Is a Pension Fund? CONTENT: How Does a Pension Fund Work?\n-----------------------------\nA pension fund is what's known as a defined-benefit plan. This means an employee will receive pension benefits in retirement that make up a certain percentage of the annual salary they earned while working. A pension fund may be limited to one or several employers, or may have no restrictions on membership.\nSponsors of pension plans include Fortune 500 companies; federal, state and local government agencies; and school systems. Generally, employers contribute most of the money toward pension benefits. However, some plans require employee contributions, and others make employee contributions voluntary.\nPension contributions are invested in stocks, bonds, commercial real estate and even portfolios of student loan debt or credit card debt. While you lack control over how a pension fund invests money, you will receive the same monthly pension payment for the rest of your life, regardless of how the fund's investments perform.\nLike other methods of saving for retirement, pensions have their pros and cons, and promoters and detractors. According to the AARP National Retired Teachers Association, the \"traditional and best approach\" to retirement security comprises pension and Social Security benefits, along with individual savings.\nHowever, critics argue that some pensions are drastically underfunded and sometimes make risky investments. In some cases, the federal government ends up bailing out failed pension funds. Furthermore, some businesses in recent years have closed or frozen their traditional pension plans, which tend to be complicated and costly to operate.\nTake all factors into consideration when planning your retirement and go with the method you think would work best for you. You may find yourself agreeing with the AARP and including a pension as part of your retirement strategy alongside other methods, such as a Roth IRA. END
 TITLE: What Is a Pension Fund? CONTENT: When Can I Withdraw From My Pension Fund?\n-----------------------------------------\nIf you have a pension, you typically can't obtain full benefits until you reach a certain age, like 62 or 65. But if you retire early—at age 55 or 60, for example—you may be able to receive a lower monthly pension payment. And if you're terminated by your employer, you still may qualify for a reduced pension payment, depending on your age.\nAnd if you leave your job before you're able to draw from it, you unfortunately may not be able to take money out of the pension plan or take your pension with you when you leave your job. Leaving with some or all of your money will depend on whether your contributions have vested, meaning they're entirely yours, and what the pension plan's rules are.\nSome pension plans may let you borrow against your pension, although this is something financial experts say is unwise. So-called pension advances provide a lump-sum payment you'll pay back by signing over your pension checks to a private lender over a period usually lasting five to 10 years. The fees attached to pension advances can effectively raise the annual percentage rate (APR) for this borrowing method to more than 100%, making it an unattractive way to raise cash. END
 TITLE: What Is a Pension Fund? CONTENT: What Is the Difference Between a Pension Fund and a 401k?\n---------------------------------------------------------\nBoth a pension fund and an employer-provided 401(k) enable you to save money for retirement, but they differ in a few key ways.\nA pension plan promises a certain monthly benefit when you retire. It may be several hundred dollars a month or, more often, it involves a formula that takes into account your salary and length of employment. Normally, pension plans are protected by federal insurance.\nAmong the advantages of a pension fund are:\n*   Hefty benefits can be built up over a short period, even if you take early retirement.\n*   Employers can contribute more than they can under other types of retirement plans.\n*   Benefits are insured.\n*   The amount of benefits doesn't depend on how the fund's assets perform.\nDisadvantages of a pension fund include:\n*   Choosing a benefit for your survivors will cut into your monthly benefits while you're alive.\n*   If a retiree is single when they die, the pension benefit can't be inherited by the retiree's heirs.\n*   Unlike a 401(k), you can't withdraw a lump sum from your pension to cover expenses such as medical costs or a child's college tuition without a pension advance.\n*   Monthly pension benefits can stay flat over time, without any adjustment for inflation.\nBy contrast, an employer-sponsored 401(k) does not promise a set amount of money per month. You and your employer can make tax-deferred contributions to a 401(k), which—coupled with investment gains and losses—will dictate how much money the account ultimately contains by the time you retire. Investments in 401(k) accounts, such as stocks, bonds and mutual funds, are not federally insured.\nAmong the advantages of a 401(k) are:\n*   You're in the driver's seat when it comes to 401(k) contributions. You can chip in as little or as much as you'd like.\n*   When you leave a job, you retain ownership of a 401(k).\n*   Contributions to a 401(k) come out of your paycheck before federal taxes are withheld. You don't pay taxes on the money until you withdraw cash from your 401(k).\n*   Many employers match part of your contributions up to a certain percentage of your annual pay.\nDisadvantages of a 401(k) include:\n*   Management fees can eat into your investment gains.\n*   You may be penalized for withdrawing money before age 59½.\n*   You may have little control over the quality and quantity of investments.\n*   Monitoring your 401(k) investments may require a fair amount of work on your part. END
 TITLE: What Is a Pension Fund? CONTENT: What Should I Do if My Employer Doesn't Offer a Pension Fund?\n-------------------------------------------------------------\nIf your employer doesn't offer a pension fund, you've got some alternatives. Your options include:\n*   **Employer-sponsored 401(k)**\n*   **Traditional IRA**: This type of IRA lets you set aside tax-deferred money for retirement. With this setup, you can claim tax deductions on your contributions. You pay taxes on the money in your account when you withdraw it.\n*   **Roth IRA**: Money you put into a Roth IRA already has been taxed. This means you won't pay any taxes on money when you withdraw it. Unlike a traditional IRA, you can't claim tax deductions on contributions to a Roth IRA.\nA number of financial institutions offer IRAs, such as banks, credit unions, investment brokerage firms and mutual fund providers. Rather than setting up an IRA through an employer, you'll need to establish it and maintain it on your own. END
 TITLE: What Is the Difference Between a Pension and a 401(k)? CONTENT: An employer-sponsored pension gives you a fixed sum of money each month after retirement for as long as you're alive. That sum is based on how long you worked for that employer and what your salary was. The monthly benefit may, for instance, be $100. Or it may be an amount equal to 1% of your average salary during your final five years of employment multiplied by your total years of employment.\nAs of 2018, about 1 in 3 older adults received pension benefits, according to the Pension Rights Center. The median benefit ranged from $9,827 to $30,061 a year, depending on the type of pension.\nTo receive pension benefits, a retiree must have worked at an employer for a certain period of time so that their benefits are \"vested.\" In many cases, you're fully vested in your pension (and qualify for full benefits) if you've worked somewhere at least five or seven years. You may be partially vested (and qualify for partial benefits) if you haven't met the necessary threshold to become fully vested.\nEmployees are automatically enrolled when a pension plan is offered by an employer, whether it's a major corporation or a local government. Funding for a plan can come from the employer and the employee, with investment earnings adding value to the pension account over time. Earnings from pension account investments can fluctuate, however. For instance, Pew Charitable Trusts estimates that during the 2020 budget year, returns for the typical public pension fell 4 to 5 percentage points short of their targets. The good news? Unlike 401(k) accounts, pensions have a guaranteed monthly benefit amount, which will be unchanged by the effect market fluctuations have on the pension's financial performance.\nOther advantages of pensions include:\n*   Federal insurance backs most plans.\n*   No dependence on stock market performance once you've retired.\n*   Ability of an employer to contribute more to a pension plan than other types of retirement plans.\nAmong the disadvantages of pensions are:\n*   Lack of control over how the money is invested.\n*   Little flexibility in tapping into your pension before retirement if major expenses arise.\n*   No cost-of-living adjustments for many private pension benefits.\n*   Limited ability for pension benefits to be passed on to a retiree's heirs upon their death.\nAll or part of your pension benefits may be taxed by the federal government. Some states tax pension benefits, while others don't. If you withdraw money from a pension plan before age 59½, you may face a 10% tax penalty from the IRS; there are exceptions, however, such as if you become totally or partially disabled. END
 TITLE: What Is the Difference Between a Pension and a 401(k)? CONTENT: What Is a 401(k)?\n-----------------\nA 401(k) is an employer-sponsored plan that sets aside a certain percentage of your paycheck to be invested for your retirement. In some cases, your employer may match the contributions you make up to a percentage of your annual salary, such as 3%.\nEnrollment in a 401(k) may be automatic when you start a job, but you're not required to participate. Taxes on 401(k) contributions are deferred until you pull money out of the plan, as long as withdrawals happen after you're 59½ years old.\nWorkers with a 401(k) plan are given a menu of investment options that might include company stock, individual stocks and mutual funds. Financial experts generally recommend earmarking 10% to 15% of your pretax income for your 401(k). If you're at least 40 years old, you may want to bump up that figure to 20%.\nAdvantages of 401(k)s include:\n*   You control how much or how little you contribute to a 401(k).\n*   Contributions can automatically be deducted from your paycheck before federal taxes are withheld.\n*   Taxes are deferred until you take money out of your 401(k).\n*   If you change jobs, you can take some or all of your 401(k) with you, depending on whether you're fully or partially vested.\nAmong the disadvantages of 401(k)s are:\n*   The quality and quantity of investment options may be limited.\n*   Financial advisers may be restricted from offering recommendations for 401(k) investments.\n*   Management fees can take a bite out of your investment gains.\n*   You may face a 10% tax penalty for withdrawing money before you reach age 59½. END
 TITLE: What Is the Difference Between a Pension and a 401(k)? CONTENT: Key Differences Between a Pension and 401(k)\n--------------------------------------------\nAmong the key differences between a pension and a 401(k) are:\n*   A 401(k) allows much control over contributions and investment decisions than a pension plan does.\n*   The employer normally funds a pension plan, while the employee normally funds a 401(k).\n*   A pension plan guarantees a certain amount of benefits per month, but a 401(k) does not.\n*   Pension plans usually are federally insured, while 401(k)s are not.\n*   When you leave a job, you can take a 401(k) with you, but you may not be able to do the same with your pension. END
 TITLE: What Is the Difference Between a Pension and a 401(k)? CONTENT: What to Do if You Don't Have Access to a Pension or 401(k)\n----------------------------------------------------------\nIf you work for an employer that doesn't offer a pension plan or a 401(k), or you're self-employed, you may want to explore a Roth IRA.\nThe money you deposit into a Roth IRA is invested in stocks, mutual funds, exchange-traded funds (ETFs) or other vehicles. You can open a Roth IRA at a bank, credit union or investment brokerage firm.\nA Roth IRA differs from a traditional IRA in one significant way: With a Roth IRA, you don't pay taxes on money that you withdraw during retirement, but you do pay taxes on money you withdraw from a traditional IRA during retirement. As such, contributions to traditional IRAs typically qualify for federal tax deductions, but contributions to Roth IRAs do not. END
 TITLE: New Debt Collection Rule Allows Contact on Social Media CONTENT: What to Do if You Have Debt in Collections\n------------------------------------------\nIf you've got debt in collections, it's important that you don't ignore it. Ignoring the debt won't make it disappear, and could actually make matters worse. Tackling those overdue bills right away will put a halt to debt collectors bugging you and should ease damage to your credit.\nHere are other steps to take when you have debt in collections.\n*   **Cooperate with the creditor.** If your debt has gone unpaid for just a few months, it's likely that efforts are being made to collect it by the original creditor (your credit card issuer, for instance). Once a company's in-house debt collector runs into a wall, the creditor might turn over the debt to an outside debt collector. Before that happens, contact your creditor to see if you can work out a payment plan.\n*   **Call off the collector.** In most instances, a debt collector must quit contacting you if you ask them in writing to do so. While this won't make your debt vanish, it can give you some peace as you work to repay the debt.\n*   **Explore debt negotiation.** A debt collector may be willing to compromise in order to get at least some of its money. So it's worth inquiring about a lump-sum payment that's lower than the amount you owe or about a debt repayment plan.\n*   **Look into legal help.** If you feel like you're in over your head with the past-due debt, you may want to consider consulting an attorney. This could be especially important if the debt collector is taking you to court. END
 TITLE: New Debt Collection Rule Allows Contact on Social Media CONTENT: How Does a Collection Account Affect Your Credit?\n-------------------------------------------------\nAfter a debt goes into collections, it'll most likely show up on your credit reports and potentially cause your credit scores to dip.\nOnce a creditor hands your debt off to a collector, the original account will be marked on your credit reports as transferred and closed. A debt that's gone into collections will stay on your credit reports for seven years after the initial delinquency date—even after you've paid it off.\nYour credit scores may improve after you've wiped out the collection account. That's because some newer credit scoring models don't include collection accounts with no balance in score calculations. However, older scoring models, including those used in mortgage lending, still factor into collection accounts with a zero balance. END
 TITLE: What Can You Use a Cash-Out Refinance For? CONTENT: A cash-out refinance replaces your existing mortgage with a new home loan that exceeds the amount you owe on your house. You then can tap into the difference between the value of your home and the amount you owe as a cash payout. You can spend the cash on debt consolidation, home improvements and a variety of other needs.\nUsually, a lender restricts the amount you can borrow through a cash-out refinance to about 80% of the equity you've built in your home. So, if your home is valued at $250,000 and you still owe $150,000, the maximum cash-out finance loan amount might be $200,000, with $50,000 of it going to you in cash.\nA lender hands you the money from a cash-out refinance, which comes with a fixed interest rate or adjustable interest rate, in a lump sum. That sum is left over after the initial mortgage is paid off and closing costs are covered.\nHere are some of the typical criteria to qualify for a cash-out refinance:\n*   A minimum credit score, which could range from 600 to 640. In some cases, though, you might be able to obtain a cash-out refinance loan with a credit score as low as 580. Keep in mind that credit score requirements vary from lender to lender.\n*   Debt-to-income ratio of less than 50%. How do you calculate this ratio? Divide your monthly debts and bills by your monthly income.\n*   Sufficient amount of home equity (normally at least 20%).\n*   You must have owned your own for at least a certain length of time. END
 TITLE: What Can You Use a Cash-Out Refinance For? CONTENT: What Do People Use a Cash-Out Refinance For?\n--------------------------------------------\nPeople use a cash-out refinance for a variety of reasons. They include:\n*   A lower mortgage interest rate. With a cash-out refinance, you might be able to swap out a higher original interest rate (like 5%) for a lower one (like 3%).\n*   Home improvement projects like a kitchen remodel, a replacement HVAC system or a new patio deck. If you put the cash-out proceeds toward a project that increases the value of your home, the mortgage interest is tax-deductible.\n*   Emergency expenses, such as an unexpected hospital stay or unplanned car repairs.\n*   Education expenses, such as college tuition.\n*   Consolidating and paying off high-interest credit card debt. END
 TITLE: What Can You Use a Cash-Out Refinance For? CONTENT: Will a Cash-Out Refinance Affect Your Credit Score?\n---------------------------------------------------\nA cash-out refinance can affect your credit score in several ways, though most of them minor. Some of them are:\n*   Submitting an application for a cash-out refinance will trigger what's known as a hard inquiry when the lender checks your credit report. This will lead to a slight, but temporary, drop in your credit score.\n*   Shopping around can cause a decline in your credit score. If you apply with several lenders in search of the lowest interest rate over a roughly 14- to 45-day period, the impact on your credit score could be minimal. That's because most credit-scoring models look at this as one inquiry rather than several inquiries. However, if you spread out the applications over a period of months, your credit score could suffer.\n*   Replacing your old mortgage with a new mortgage will lower the average age of your credit, possibly translating into a dip in your credit score. But if you established a solid payment history with the old mortgage, your credit score might see only a small, temporary decrease if any. END
 TITLE: What Can You Use a Cash-Out Refinance For? CONTENT: Is It a Good Idea to Get a Cash-Out Refinance?\n----------------------------------------------\nA cash-out refinance may be helpful in certain situations.\n1.  It could lower your interest on the loan. If you're considering a cash-out refinance, getting a lower interest rate should be a main goal. And, depending on how much cash you plan to take out, a lower interest rate could save you money over the life of the loan.\n2.  If you plan to make home improvements that will increase your home's value, a cash-out refinance may provide a larger loan than you could get otherwise, often at a lower interest rate than you could find with a personal loan, home equity loan or credit cards. You may also be able to get a tax break using the mortgage interest deduction depending on your project.\n3.  Using a cash-out refinance to help pay college costs for your child could help you cover gaps in financial aid or provide cash at a lower interest rate than a student loan.\nWhile a cash-out refinance can benefit your finances, there are drawbacks.\n1.  You could lose your home. Because your house serves as collateral for the loan, you might face foreclosure if you fall behind on mortgage payments.\n2.  Closing costs could add up to thousands of dollars. Closing costs, such as the loan origination fee, can wind up being 2% to 5% of the amount you've borrowed. These costs could wipe out any money you hoped to save through refinancing at a lower interest rate depending how long you plan to stay in the house.\n3.  Various fees could be attached to the loan. This might include a penalty for paying off your mortgage early. The fee could equal one to sixth months' worth of interest payments.\n4.  You could end up worse off if you use the money to pay off high-interest credit card debt—and then run up the balances again. In that case you'll be paying for the new, higher mortgage and high interest on your credit cards, leaving you in a worse situation than before you got the loan. END
 TITLE: What Can You Use a Cash-Out Refinance For? CONTENT: Alternatives to a Cash-Out Refinance\n------------------------------------\nIf, like many other people, considering a cash-out refinance to take a bite out of higher-interest debt, you should know that several other options are available. Here are six alternatives to explore:\n1.  Personal loan: A lot of people take out personal loans to consolidate and chip away at their credit card debt. A personal loan, which typically doesn't require any collateral, often carries an interest rate that's lower than what's charged on credit card debt.\n2.  Home equity loan: This type of fixed-rate loan lets you borrow against a chunk of your home equity. Interest rates for home equity loans typically are lower than they are for personal loans and credit cards. Keep in mind that you'd be trading unsecured credit card debt for debt that could jeopardize ownership of your house if you're experiencing financial trouble the same way you would with a cash-out refinance.\n3.  Home equity line of credit (HELOC): Similar to a home equity loan, a HELOC allows you to tap into your home equity. But these two loans differ in one key way. A home equity loan (like a cash-out refinance) gives you access to a lump sum of money, but a HELOC gives you a line of credit that you can borrow against whenever you choose. In that regard, a HELOC is like a credit card.\n4.  Debt snowball and debt avalanche methods: These two approaches can help you get out of debt. With the debt snowball method, you initially focus your energy on paying down the cards with the lowest balances before moving on to those with the higher balances until all of your credit card debt is erased. The debt avalanche method prioritizes paying off higher-interest debt first, then moving on to the lowest-interest debt.\n5.  Help from creditors: When you find yourself drowning in credit card debt, one of the smartest things you can do is to contact your credit card issuers. You might be able to negotiate a reduction in your interest rates, lower monthly payments or paused payments in the quest to ease your financial burden.\n6.  Credit counseling: Feeling crushed by your credit card debt? Then it might be time to reach out to a nonprofit credit counseling service. One of the service's specialists can assist with debt management, debt consolidation or debt settlement, all of which can put you on the path toward being debt-free. A specialist also can work with you to come up with a household budget. END
 TITLE: How to Save Money if You’re Still Employed During COVID-19 CONTENT: Create an Emergency Fund\n------------------------\nA 2019 survey by GOBankingRates found that 69% of Americans had less than $1,000 in a savings account. That leaves millions of Americans with potentially little cash in the event an emergency arises, such as an unexpected hospital stay or an unplanned home repair.\nWith the economy on shaky footing, now is a great time to start an emergency fund so you don't find yourself in a financial bind should an unplanned expense arise.\nHow much money should you have in an emergency fund? Generally, your emergency fund should contain enough money to cover three to six months' worth of expenses. If you can go beyond that recommendation, even better. But if you're only able to put aside one month's worth of expenses, you're still getting a jump on surprise expenses.\nTo start setting aside money in an emergency fund, consider taking the following actions:\n*   Slightly decrease your debt payments while still making at least your minimum payments.\n*   Save money during the pandemic that you might otherwise have spent on things like movie tickets and restaurant meals.\n*   Seek ways to cut costs, like getting rid of an unused gym membership.\n*   Hunt for a side gig to generate more income. This could include becoming an Amazon delivery driver, a dog walker or an online tutor.\nYou might also apply those moves to other areas of your finances, such as saving for retirement.\nSo, how do you get started with an emergency fund? Here are four tips:\n1.  Develop a household budget. This should take into account all of your sources of income and all of your household expenses.\n2.  Set a monthly savings goal. Look at how much money you can put in your emergency fund once you've covered your monthly expenses.\n3.  Park your money. The last place you should stash your emergency funds is under your mattress. Instead, consider opening a high-yield savings account, a money market account or a certificate of deposit (CD) account.\n4.  Don't touch it. To resist the urge to dip into your emergency fund to buy a new TV, keep the money in an account at a bank or credit union that's not tied to your primary checking or savings account.\n5.  Set it and forget it. Automatically transfer a portion of each paycheck to your emergency fund. END
 TITLE: How to Save Money if You’re Still Employed During COVID-19 CONTENT: Save for Retirement\n-------------------\nSaving for a rainy day is one thing. Saving for the golden years of retirement is quite another.\nIn 2019, the typical American household reported about $50,000 in retirement savings, according to the Transamerican Center for Retirement Studies. Yet the amount you'll need in retirement goes well beyond that. Estimates vary widely, but in a 2019 survey for investment giant Charles Schwab, $1.7 million was the average amount that 401(k) participants thought they'd need in retirement. Of course, everyone's situation is unique, so your retirement target might be higher or lower than that.\nRegardless of the formula for calculating retirement savings, it's important to build your nest egg. Investing experts suggest earmarking at least 15% of your gross income for retirement.\nHere are seven steps you can take to put yourself on track toward achieving your retirement goals:\n1.  Start saving for retirement as early as you can. This gives you a better shot at your nest egg growing over time.\n2.  Whittle down your mortgage debt. Owning your home outright can free up hundreds or thousands of dollars for retirement. In 2019, the average mortgage debt in the U.S. was $203,296, Experian data shows.\n3.  Pay off student loan debt. Being saddled with student loan debt can hinder your ability to put away money for retirement. The average student loan debt for Americans stood at $35,620 in 2019, according to Experian data.\n4.  Wipe out credit card debt. The average individual U.S. credit card debt climbed to $6,194 in 2019, Experian data shows. If you don't pay your credit card bills in full each month, the interest charges can add up. Paying off credit cards can be challenging, but using the debt avalanche or debt snowball payoff method can help you do it sooner rather than later.\n5.  Refinance your mortgage. Refinancing your mortgage at a lower interest rate could yield thousands of dollars in savings over the life of the loan. Keep in mind, though, that it could take years to recover the upfront costs of refinancing.\n6.  Start participating in your employer's 401(k). This type of retirement plan enables you to invest part of your paycheck before taxes are taken out. It's estimated that only about half of U.S. workers contribute money to their employer-sponsored 401(k). Some employers offer fund matching to encourage employees to invest in their retirement. If yours does, you could be leaving free money on the table if you're not participating.\n7.  Open an IRA. An IRA, or individual retirement account, lets you save for retirement on a tax-free or tax-deferred basis. But in a May 2020 survey commissioned by Bankrate, more than one-fourth of working households in the U.S. reported they weren't contributing to retirement accounts, including IRAs, before the pandemic. Before the next crisis hits, and if your employer doesn't offer a 401(k), it might be wise to start an IRA—as long as you've got enough available cash—so that you're better prepared for retirement. END
 TITLE: How to Save Money if You’re Still Employed During COVID-19 CONTENT: Set Aside Cash for a Down Payment on a Home\n-------------------------------------------\nFor many Americans, owning a home is a dream. Realizing that dream doesn't come cheap, though. For instance, the median down payment for a U.S. home was 12% in 2019, according to the National Association of Realtors. A down payment is an upfront payment that's calculated as a percentage of the purchase price—usually 5% to 20%, with 20% or more being ideal for the best rates and terms.\nEven if you can afford the monthly payments on a mortgage loan, it can be tough to come up with a down payment. Here are four ways you can save cash for a down payment on a home:\n1.  Set aside a certain amount of money every month into a savings account solely for a house down payment.\n2.  Take a side gig to make extra income.\n3.  Put off vacations until you've got enough money set aside for a down payment.\n4.  Trim your high-interest credit card debt. END
 TITLE: How to Save Money if You’re Still Employed During COVID-19 CONTENT: Don't Let Major Purchases Deplete Your Savings\n----------------------------------------------\nHave you got your eye on new furniture for your bedroom? Are you in the market for a new car? Big purchases can put a dent in your budget. However, you can cushion your budget by saving up money for that new furniture or new car. Here are four suggestions for how to do it:\n1.  Open a savings account designed just for the big purchase.\n2.  Set up automatic transfers from your checking account to your savings account.\n3.  Think small. Can't afford to put away $500 a month? Then go with $50. It might take longer to save up, but at least you'll be closer to your goal.\n4.  Collect loose change. Put all of your pocket change in a piggy bank or jar at home, and designate it for your big purchase. All of those coins might add up faster than you think. END
 TITLE: How to Save Money if You’re Still Employed During COVID-19 CONTENT: Avoid Credit Card Debt\n----------------------\nNot running up any credit card debt, or at least reducing it, can put more money in your pocket.\nInvestment giant Fidelity offers the following example of why it pays to stay away from piling up high-interest debt: You buy a $2,000 flat-screen TV on a credit card with a 15% interest rate. If you make only the minimum monthly payment, it would take you more than 17 years to erase the original debt. During that time, the credit card issuer would collect over $2,500 in interest—more than you paid for the TV in the first place.\nAs this example illustrates, it's best to pay off your credit card balances in full each month to avoid interest charges and save more money. Consider these six other steps to avoid or reduce credit card debt:\n1.  Use credit cards only for purchases you know you can afford to pay off each month.\n2.  Negotiate with credit card companies to lower your interest rates.\n3.  Explore an introductory 0% balance transfer offer on a credit card as a way to consolidate your debt. Only do this if you know you can pay off the transferred balance before the intro period ends and won't run up the paid-off cards' balances again.\n4.  Look into a debt consolidation loan, which can allow you to pay off your credit card debt at a lower interest rate and with a single monthly payment.\n5.  Consider contacting a nonprofit credit counseling agency if you're overwhelmed by credit card debt. END
 TITLE: How to Save Money if You’re Still Employed During COVID-19 CONTENT: Putting It All Together\n-----------------------\nNo matter what your goals are, saving money if you're still on solid financial footing during the coronavirus pandemic can put you in a better position to cope with the next crisis. As part of the process, review your credit report to see where you stand in terms of debt. And know you can step up your savings game and brace yourself financially for whatever comes your way. END
 TITLE: Can I Refinance My Mortgage With No Closing Costs? CONTENT: How Does a No-Closing-Cost Refinance Work?\n------------------------------------------\nNot every lender defines a no-closing-cost refinance the same way—but make no mistake, any way it's defined doesn't mean there are no closing costs on the loan; it just means you won't pay them upfront in cash. Generally, though, there are two types of no-closing-cost refinance:\n*   The lender pays your closing costs (such as loan origination fees and appraisal fees), but charges you a higher interest rate. The higher rate remains until you pay off the loan or you refinance again.\n*   The lender rolls your closing costs into the loan. When that happens, the costs are added to the principal that you owe. You'll be able to skip paying the closing costs upfront, but you'll wind up paying these costs—with interest—for the life of the loan.\nEither way, your monthly mortgage payment is bound to go up. When the lender covers the closing costs, the higher interest rate will bump your monthly mortgage payment but won't change the principal. If the lender combines your closing costs with the principal, your monthly mortgage payment will jump but the interest rate will stay the same.\nExamples of closing costs include:\n*   Application fee\n*   Appraisal fee\n*   Inspection fee\n*   Loan origination fee\n*   Prepayment penalty\n*   Survey fee\n*   Title search and title insurance\nBecause a no-closing-cost refinance can boost your interest rate and your monthly mortgage payments, this kind of refinance typically isn't recommended. END
 TITLE: Can I Refinance My Mortgage With No Closing Costs? CONTENT: When Might a No-Closing-Cost Refinance Make Sense?\n--------------------------------------------------\nWhile a no-closing cost refinance does come with some serious drawbacks, this kind of loan might make sense if you:\n*   Don't have enough money in the bank to pay the closing costs upfront.\n*   Don't want to touch the money in your emergency fund to pay the closing costs upfront.\n*   Do plan to sell your home within the next five years.\n*   Do plan to pay off the refinance loan within the next five years.\n*   Do want to renovate or repair your home. Securing a no-cost-refinance might be a smarter move, enabling you to hang on to cash for the project and avoid taking out a home equity loan, which could be a costlier option. END
 TITLE: Can I Refinance My Mortgage With No Closing Costs? CONTENT: Alternative Ways to Reduce Mortgage Refinance Fees\n--------------------------------------------------\nGetting a no-closing-cost loan isn't the only way to cut down on mortgage refinance fees, which vary from state to state and from lender to lender. Here are three other possibilities:\n1.  Improve your credit score. A higher credit score might enable you to obtain more favorable lending terms than someone with a lower credit score. This could include the ability to qualify for reduced fees, such as a lower loan origination fee. The origination fee usually ranges from 0.5% to 1.5% of the loan principal. You can get a free credit score through Experian to see where it stands.\n2.  Negotiate with the lender to reduce or eliminate refinance fees. Don't be afraid to ask for breaks on the upfront fees (closing costs), or on ongoing fees like those for making a late payment or paying off your loan early. Where should you begin? Start with your current lender. They might be eager to slash or waive fees in order to keep you as a customer.\n3.  Shop around for the best refinance deals from different lenders. Aside from fees, consider each lender's interest rates and reputation—and remember to tell your current mortgage lender that you're shopping around. END
 TITLE: Should You Invest During a Recession? CONTENT: Is It Smart to Invest During a Recession?\n-----------------------------------------\nIt can be smart to invest during a recession. But the ultimate answer to this question rests with how much money you can afford to lose, how comfortable you are navigating the investment world and how much risk you can stomach.\nIn a recession, the stock market is often volatile. Depending on a variety of factors, the market could crash at any moment. As the stock market plunges, so, too, may your investments—at least temporarily—but remember that you won't realize any actual losses unless you cash out.\nAt the same time, those recessionary pressures pushing down stock values could give you an opportunity to buy shares in a company at a rock-bottom price, eventually leading to a profit if the stock rebounds with the economy. In fact, your stock might gain more value over the long term if you buy it during a recession than during an economic boom.\nHowever, there's no guarantee a stock you buy during a recession will deliver a profit in the near future. It typically takes time for a stock to recover and regain the value that might have evaporated in an economic downturn. And, depending on which industries suffer most during a recession, the company you invested in may never recover and your investment could be wiped out.\nIf you decide that you can afford to sink some money into the stock market during a recession, it might be wise to visit with a financial advisor for some guidance. END
 TITLE: Should You Invest During a Recession? CONTENT: The Risks of Investing During a Recession\n-----------------------------------------\nAs mentioned, choosing whether to invest during a recession should depend on whether you can really afford to do it and how much risk tolerance you have.\nFirst, think carefully and in detail about your financial situation. Do you have enough money saved in an emergency fund? Would dedicating money to an investment harm your ability to cover household expenses or pay your debts? Leaving yourself in a financial bind is rarely worth the possible rewards of investing in the stock market.\nAlso keep in mind that it's hard to time the market, even for professional investors. Choosing a single moment to invest your money is essentially a guess. And if you guess wrong and then need to pull your money out of the market to meet everyday financial needs, you could end up with a small fraction of your original investment.\nHere are good ways to minimize risk when investing in the stock market:\n*   **Diversify your portfolio.** Simply put, this translates to not putting all your eggs in one basket. For instance, you likely would want to avoid spending every one of your investment-designated dollars on a single stock. Instead, you might split your money among several stocks or, even safer, a few mutual funds. Diversification is designed to offset losses from some investments with gains from others. It won't necessarily shield you from all losses, but it could cushion the financial blow.\n*   **Invest in index funds.** Rather than trying to hit a bull's-eye with purchases of individual stocks, investing in an index fund lets you pick a group of stocks or bonds tied to a market index. These indexes include the Dow Jones Industrial Average and the S&P 500. Index funds tend to be lower-risk options for investing, since they normally enjoy balanced long-term growth and they spread your risk over a variety of stocks and bonds. END
 TITLE: Should You Invest During a Recession? CONTENT: How to Get Started With Investing\n---------------------------------\nThere's no one approach to investing your money.\nOf course, you can try handling investment decisions on your own. The easiest DIY path involves setting up an investment account at a traditional or online brokerage firm such as Charles Schwab, Fidelity, Merrill Lynch, SoFi and E-Trade. Depending on the type of brokerage firm, you might be able to reach out for professional investment advice.\nAn alternative is to let a robo-advisor do the work for you. Typically, a robo-advisor automatically makes investment decisions based on your preferences. For a more hands-on (and more expensive) approach, you can hire a personal financial advisor to manage your investments.\nNo matter which route you chose, here are three types of investment to consider:\n1.  Mutual funds: A mutual fund is a bucket of stocks, bonds or other securities. One type of mutual fund is an index fund, which mimics the performance of the stock market by investing stocks in a certain stock index, like the S&P 500. Overall, mutual funds tend to be less risky than individual stocks. A cousin of mutual funds is an exchange-traded fund (ETF). An ETF involves a basket of stocks or other types of securities. However, it's not identical to a mutual fund. One big difference: A mutual fund can be bought or sold only once during a single day, but an ETF behaves like a stock and can be traded numerous times throughout the day.\n2.  Individual stocks: When you buy an individual stock, you're essentially becoming an owner of a piece of the company. The company's financial performance, combined with market factors, dictate the value of its stock.\n3.  Bonds: A bond is a low-risk investment that's similar to an IOU. You're lending money to the borrower, such as a corporation or government entity, in exchange for a promise that you'll be repaid with a certain amount of interest.\nRather than buying one of these investments individually, you might look at purchasing them through a 401(k) or IRA if you're not already saving for retirement. These investment vehicles are designed to help you save money for retirement, whether that's 10 years or 40 years down the road. Both the 401(k) and the IRA offer tax advantages that individual funds, stocks and bonds don't.\nBefore settling on any type of investment, you might consider visiting with a financial advisor to set up an investment strategy that's tailored to your goals and designed to minimize risks. But while you can pick up valuable investment insights from a financial advisor, keep in mind that this advice comes at a price. A financial advisor typically charges an hourly fee, a flat fee or a percentage of the assets they're managing. These costs can range from hundreds to thousands of dollars. END
 TITLE: What Is the Downside of a Reverse Mortgage? CONTENT: As its name suggests, a reverse mortgage is the opposite of a traditional mortgage loan. With a reverse mortgage, you don't borrow money to buy a house; rather, you tap into the equity of your home to take out a loan. A reverse mortgage is meant for homeowners who have paid off their mortgage or who have accumulated a lot of home equity.\nReverse mortgages frequently are marketed to retirement-age homeowners who want more money to cover living expenses but still want to hang on to their homes. One of the upsides of a reverse mortgage is that lenders characteristically don't impose income or credit requirements.\nProceeds from a reverse mortgage loan are usually tax-free, and not a penny of the loan needs to be paid back if the borrower stays in the home, pays property taxes and homeowners insurance, and covers maintenance expenses. That changes, though, if you sell or move out of the home, or if you (or in certain cases, your spouse) die. Those situations trigger the requirement for you, your spouse or your estate to repay the loan.\nThree kinds of reverse mortgages are available:\n1.  Single-purpose reverse mortgage: These loans, available from government agencies and nonprofit groups, are designed for just one purpose outlined by the lender. For instance, someone might use proceeds from a single-purpose reverse mortgage to tackle a home improvement project or pay property taxes. They're the lowest-cost option among reverse mortgages.\n2.  Proprietary reverse mortgage: Proprietary reverse mortgages, available from private lenders, offer more flexibility than single-purpose reverse mortgages. Unlike single-purpose reverse mortgages, proprietary reverse mortgages usually don't come with restrictions on how you can spend the proceeds. This option can be especially attractive to owners whose homes carry high values and who want to borrow a substantial sum of money.\n3.  Home Equity Conversion Mortgage (HECM). An HECM, insured by the Federal Housing Administration (FHA), is the most common kind of reverse mortgage. As of 2020, the HECM borrowing limit was $765,600. Although proceeds from an HECM can be used for any purpose, some homeowners might not qualify due to certain restrictions. These loans are available only to homeowners who are at least 62 years old. END
 TITLE: What Is the Downside of a Reverse Mortgage? CONTENT: Drawbacks of a Reverse Mortgage\n-------------------------------\nAlthough a reverse mortgage enables an owner to tap into perhaps hundreds of thousands of dollars in home equity, there are several downsides to a reverse mortgage. Those include:\n*   **Various costs**: Similar to a traditional mortgage, a lender typically charges several fees when you take out a reverse mortgage. Those can include a mortgage insurance premium, an origination fee, a servicing fee and third-party fees. For an HCEM, the initial mortgage insurance premium is 2% of the loan amount; on top of that, you'll pay an annual mortgage premium of 0.5%. You'll also pay an origination fee of $2,500 or 2% of the first $200,000 of your home value (whichever is greater), plus 1% of the amount exceeding $200,000; origination fees cannot exceed $6,000.\n*   **Variable interest rates**: Most reverse mortgages have variable interest rates, meaning the interest rate that determines how much is added to your loan balance each month fluctuates throughout the life of the loan.\n*   **No tax deduction**: Interest paid on a reverse mortgage can't be deducted on your annual tax return until the loan is paid off.\n*   **Less equity**: A reverse mortgage can siphon equity from your home, resulting in a lower asset value for you and your heirs.\n*   **Potential home repairs**: If your home isn't in good shape, you might need to make repairs before you can qualify for a reverse mortgage.\n*   **Possible early repayment**: Aside from when a homeowner dies or moves out, the reverse mortgage loan might need to be repaid sooner than expected if the owner fails to pay property taxes or homeowners insurance, or if the owner isn't keeping up with home maintenance.\n*   **Medicaid eligibility.** A reverse mortgage doesn't affect your Medicare or Social Security benefits, but it might affect your eligibility for Medicaid benefits. END
 TITLE: What Is the Downside of a Reverse Mortgage? CONTENT: Reasons Why a Reverse Mortgage Might Not Work for You\n-----------------------------------------------------\nIn addition to its downsides, there are three examples of when a reverse mortgage might be totally out of the question:\n1.  You want to move fairly soon. Timing is important when it comes to taking out a reverse mortgage. If you're looking to relocate in the next few years, it might not be wise to saddle yourself with a reverse mortgage. Why? You're required to pay off the loan when you move out. Reverse mortgages are geared toward homeowners who plan to stay put for quite awhile.\n2.  You can't handle the costs. Closing costs, maintenance expenses, homeowners insurance and property tax bills could strain your already stretched budget. Worse yet, a lender might tell you to pay off the loan right away if you've fallen behind on paying your homeowners insurance or property taxes.\n3.  You hope to pass along your home to your heirs. A reverse mortgage can complicate matters if you leave your home to your kids or other heirs. For instance, what if your estate lacks the money to pay off the reverse mortgage loan? You heirs might have to scrape together the cash from their savings or sell the house to pay off the loan. END
 TITLE: What Is the Downside of a Reverse Mortgage? CONTENT: Alternatives to a Reverse Mortgage\n----------------------------------\nWhile a reverse mortgage may not work for your situation, don't give up hope—it's not your only option for generating cash or saving money. Here are four alternatives:\n1.  Refinance your existing mortgage. If you do a cash-out refinance, the money you gain from refinancing your current mortgage might be enough to pad your income.\n2.  Sell and downsize. Selling your home at a profit and relocating to a smaller, less costly space could be the answer to your budget woes. You might even opt to rent a place so you can avoid the hassles of homeownership.\n3.  Take out a home equity loan or a home equity line of credit (HELOC). A home equity loan or HELOC might be a less costly way to tap into your home equity. However, you must make monthly payments if you pick either of these options. Plus, unlike a reverse mortgage, you'll be subject to income and credit requirements.\n4.  Look at other resources. Do you have some stock you could sell? Can you cash out a life insurance policy that you don't need anymore? Examine various financial options that don't involve jeopardizing ownership of your home. END
 TITLE: What Is the Downside of a Reverse Mortgage? CONTENT: Explore All Your Options\n------------------------\nOn its surface, a reverse mortgage might sound like an ideal way to use your home for income. However, both upfront and ongoing costs accompany a reverse mortgage, along with a variable interest rate. Another pitfall: Because interest and fees are tacked on to the loan balance each month, the balance increases—and as the balance goes up, your home equity goes down.\nBecause of the numerous downsides to reverse mortgages, be sure to explore all of your borrowing alternatives to ensure your finances don't end up going in reverse. END
 TITLE: How to Pay Off Debt Collections CONTENT: What to Do When You Find Out Debt Is in Collections\n---------------------------------------------------\nAfter learning your debt is in collections, take a deep breath before you do anything else. There's no need to panic or make rash decisions—plenty of remedies are at your disposal. It's time to take matters into your own hands. END
 TITLE: How to Pay Off Debt Collections CONTENT: How to Deal With Debt Collectors\n--------------------------------\nIt can be annoying and scary to be pestered by debt collectors, but there are steps you can take to gain some control over the process. A federal law known as the Fair Debt Collections Practices Act governs how debt collectors interact with you.\nAside from your ability to request that a debt collector stop calling or emailing you, here are some of your other rights:\n*   Under the Fair Debt Collections Practices Act, a debt collector can't be abusive, deceptive or unfair when it's trying to collect money from you. For example, a representative of a debt collection agency isn't allowed to hurl four-letter words at you over the phone or to threaten jail time if you fail to pay up.\n*   The law prohibits a debt collector from calling you before 8 a.m. or after 9 p.m. You can give your permission for a debt collector to contact you outside those hours, though.\n*   Debt collectors are disallowed from reaching out to you at your workplace if your employer doesn't permit you to take phone calls.\n*   If you believe a debt collector is breaking the law, file a complaint with the federal Consumer Financial Protection Bureau or contact your state's consumer protection office. END
 TITLE: How to Pay Off Debt Collections CONTENT: As we've gone over, the best ways to pay off debt that's gone to collections are to negotiate a lump-sum payment or set up a payment plan. Starting the process of paying off the debt is a big step toward saying goodbye to debt collectors and, eventually, to the debt.\nWhen you're weighing a lump-sum payment or payment plan, go over all of your debts. Make a list of what you owe on all your loans and credit cards, and note the interest rates and monthly payments for each debt. Then, add up how much you owe on all of these debts each month. Checking your credit report allows you to see your debt balances in one place.\nOnce you've completed that list of debts, calculate all of your other expenses. This includes rent, groceries, utilities and gas. Some of these expenses vary from month to month, so you'll want to come up with a monthly average for non-debt expenses based on that spending over the past several months.\nNext, subtract your after-tax income from the combination of your monthly debt and non-debt expenses. If your income total is higher than your expense total, you can put the difference toward clearing the debt that's in collections. If the leftover amount falls short of what you owe, look for ways to cut spending, earn extra income or both.\nPrioritizing the debt that's in collections can help avoid further harm to your credit and can get rid of your debt collection headache. END
 TITLE: How to Pay Off Debt Collections CONTENT: Do You Need to Notify Credit Bureaus of Paid Collections?\n---------------------------------------------------------\nOnce you've paid off or settled debt that's been in collections, you don't need to notify the three national credit bureaus—Experian, TransUnion and Equifax. That's because the debt collector is supposed to report the wiped-out debt to the bureaus, which will list it as either \"paid\" or \"settled.\"\nWhat if the debt collector doesn't tell the credit bureaus that your debt has been paid or settled? File a dispute with the bureaus so that your credit report can be updated. END
 TITLE: How to Pay Off Debt Collections CONTENT: How Does Paying Off Debt in Collections Impact Credit?\n------------------------------------------------------\nCollection accounts can drag down your credit scores, but paying off or settling a debt that's in collections may not necessarily improve your credit scores. Newer credit scoring models ignore collection accounts with a zero balance, but older credit scoring models take those accounts into consideration. This means paid-off or settled collection debt may bump up your credit scores under newer scoring models, yet paid-off or settled debt may not make your credit scores budge under older scoring models.\nSince it's not likely you'll know which credit scoring model or models your future lenders will use, it's impossible to say for certain whether paying off a collection account will help you secure better terms on credit.\nA collection account remains on your credit report for seven years from the date the debt originally became overdue. After the seven-year window closes, the collection account is automatically removed from your credit report. Unfortunately, you can't get a paid-off or settled collection account removed from your credit report before the seven-year period ends. END
 TITLE: How to Pay Off Debt in a Year CONTENT: Start With a Debt Repayment Plan\n--------------------------------\nTo pay off your debt in a year, you'll need to assess your financial situation.\nStart by checking your credit report to confirm how much debt you owe. Your credit reports from the three major credit bureaus (Experian, TransUnion and Equifax) list out all debt accounts that your creditors have reported to them. Your balances may not be current since your report will contain an account's balance at the time it was last reported to the bureau, but it's a great place to get a bird's-eye overview of your debt. You can obtain a free annual credit report at AnnualCreditReport.com, or you can get your free Experian credit report at any time.\nMake a list of all of your debts, including credit cards, personal loans, auto loans, student loans and mortgage. For each debt, take note of the name of the payment recipient, amount you owe, interest rate and minimum monthly payment.\nThen start thinking about which debts you want to pay off first, and which ones you can realistically expect to pay off over a year. Typically, the most economical strategy is to prioritize paying down your highest-interest debt first, but another strategy may work better for you (we'll go over this in more detail later).\nAt the same time, think about whether you need to be saving money. If you don't have any cash set aside for unexpected expenses, create an emergency fund. Ideally, the fund should cover three to six months' worth of expenses in case of an emergency or loss of income. However, an emergency fund with just $1,000 is better than no fund at all. The money in your emergency fund should provide a cushion that prevents you from missing important payments or depending on a credit card or other high-interest debt to pay a surprise expense, such as replacing two flat tires on your car. END
 TITLE: How to Pay Off Debt in a Year CONTENT: Create a Budget and Stick to It\n-------------------------------\nNow that you know how much you owe, it's time to establish a budget. A budget gives you insight into your spending and can keep you on track toward paying off debt within a year. Here are five steps for setting up a budget.\n1.  Look at your monthly take-home income. If your income remains the same each month, you can find this figure by checking your most recent paychecks from the prior month. If your income changes from month to month, add up your income for the past three to six months and come up with the average monthly total.\n2.  Examine your expenses. Check your bank and credit card statements for the past three to six months to pin down how much you spend on a monthly basis.\n3.  Categorize your expenses. Put your expenses into categories. Categories could be broad, like recurring monthly expenses, or narrow, such as rent, utilities and insurance. You'll probably want to put discretionary (optional) expenses, like dining out and travel, into specific categories.\n4.  Establish financial goals. Since you're trying to whittle down your debt within a year, your priority should be to decide how much money you're willing to set aside each month to wipe out that debt.\n5.  Monitor your spending. To reach your financial goals, you'll want to track your spending. To accomplish this, you can use a budgeting app like Mint or You Need a Budget (YNAB). Or you might opt for an old-school method like a spreadsheet or good old pencil and paper. Set aside a certain time each week to review and categorize your spending. END
 TITLE: How to Pay Off Debt in a Year CONTENT: Decide on a Debt Payoff Method\n------------------------------\nOnce you've got a budget in place, consider which debt payoff method will work best for you. Two common methods are the debt avalanche method and the debt snowball method. END
 TITLE: How to Pay Off Debt in a Year CONTENT: Earn Extra Income and Cut Down on Spending\n------------------------------------------\nOne of the quickest ways to pay off debt is to bump up your income. Here are four ways to earn extra income to help put yourself on a faster track toward eliminating debt.\n1.  Hunt for a temporary job. You may be able to snag a side hustle as a tutor, data entry specialist, graphic designer, rideshare driver, delivery driver, housecleaner or handyman.\n2.  Take on freelance work. If you have a talent for writing, social media, programming or marketing, to name a few examples, think about taking on part-time freelance clients. The nice thing about freelance gigs is that you typically can work from home.\n3.  Become a sales whiz. Do you have unused clothes or electronics around the house? You can convert those items into cash through online platforms like Craigslist, eBay and Poshmark.\n4.  Rent out a room. If you've got a room to spare, you can turn it into a moneymaker by renting it out on a platform like Airbnb. Research published in March 2020 by online lender Earnest indicates an Airbnb host makes an average of $924 a month.\nYou might also cut spending and put that money toward paying your bills. Here are six strategies for doing this:\n1.  Kick the eating-out or ordering-in habit. Restaurant meals frequently cost more than meals you fix at home.\n2.  Stick to a shopping list. Building a grocery shopping list around a weekly meal plan, and being disciplined about following the list, can yield savings as it will prevent you from buying more than you actually need (or making those empty stomach impulse purchases).\n3.  Go generic. Buy generic or store-brand products, which tend to cost less than their brand-name counterparts and are oftentimes just as high quality.\n4.  Shop around for insurance. Obtaining at least three quotes for auto, homeowners or renters insurance coverage lets you compare prices and potentially save money on premiums.\n5.  Pare down your entertainment options. If you pay for cable TV along with streaming services like Netflix and Hulu, consider slimming down your monthly expenses by dumping cable TV and staying with streaming services, or vice versa.\n6.  Cancel subscriptions. Do you have a gym membership but haven't worked out there for months? Can you live without some of the paid app subscriptions that you've accumulated? Comb through your subscriptions and memberships, and see which ones you won't miss by axing them. END
 TITLE: How to Pay Off Debt in a Year CONTENT: Consider Alternative Options for Paying Off Debt\n------------------------------------------------\nAside from adopting a debt-reduction strategy or slashing your spending, you may be able to lighten your debt load by embracing some alternatives. These include:\n*   **Asking a credit card issuer to decrease your interest rate.** Even a drop from 19% to 18% may help you pay off debt faster. If the credit card issuer declines your initial request, you might try again in three to six months (especially if your credit score has improved). It may take a little time and patience, but you could wind up with a lower interest rate on a credit card—and, therefore, could wind up paying less interest over time.\n*   **Looking into a debt consolidation loan.** A debt consolidation loan is designed to pay off higher-interest debt, typically credit card debt, through lower-interest lending. In August 2020, the average national interest rate for a 24-month personal loan, such as a debt consolidation loan, was 9.34%. By comparison, the average interest rate for a credit card that charges interest was 16.43%. One drawback of a debt consolidation loan: You typically need a FICO® Score☉ of at least 670 to qualify for a low interest rate.\n*   **Exploring a balance transfer credit card.** A low interest or 0% intro APR balance transfer card can help you pay off a higher-interest balance from another credit card. But to make this work, you must commit to paying off the transfer balance before the promotional interest period ends. Otherwise, interest charges will start kicking in. Also, you typically must have good or excellent credit to qualify for a balance transfer offer. END
 TITLE: Can I Withdraw Money From My Life Insurance? CONTENT: How Does Withdrawing From Life Insurance Work?\n----------------------------------------------\nIf you have a life insurance policy with cash value, you have several options for extracting value from it while you're still alive:\n*   Withdrawing money from the policy\n*   Surrendering the policy\n*   Borrowing against the policy\n*   Using the policy to pay your premiums END
 TITLE: Can I Withdraw Money From My Life Insurance? CONTENT: Alternative Ways to Get Money Fast\n----------------------------------\nRather than siphoning the cash value of a life insurance policy, consider the following alternatives, which can give you quick access to cash without jeopardizing your coverage. END
 TITLE: What Happens to Your 401(k) When Your Employer Goes Out of Business? CONTENT: If you invest in your company's 401(k) plan, you know that your pre-tax savings comes out of your paycheck each period and is invested in one or more investment vehicles, usually mutual funds. But you may wonder if your employer ever sees any of that money, other than any contribution it may provide. Very simply, your employer is not legally allowed to hold your 401(k) money. Under federal law, all 401(k) money must be held in a trust or in an insurance contract that's separate from your employer's assets. Therefore, neither your employer nor any of your employer's creditors can grab that 401(k) money.\nThat said, there are certain circumstances in which you may not receive all the funds you expected if your employer goes out of business.\n*   **The company goes out of business before funds make it into the plan.** Under the federal Employee Retirement Income Security Act (ERISA), an employer must deposit 401(k) contributions into the plan within 15 business days of the end of the month that your contribution was withheld. (The time limit is seven business days for employers with fewer than 100 participants.) If your employer didn't deposit your contribution before declaring bankruptcy, you could lose what would have been the most recent contribution, the National Association of Retirement Plan Participants (NARPP) says. The association recommends regularly checking your 401(k) statements to ensure your contributions are being deposited in a timely manner. Many operators of 401(k) plans let you check that information online.\n*   **Your employer contributions have a vesting schedule.** Matching or profit-sharing contributions made by your employer might be in jeopardy. Why? Your employer contributions may be on a vesting schedule. This means you might not have full access to those contributions until you've reached a certain benchmark, such as one year of employment. Therefore, if your employer goes out of business before its contributions to your 401(k) have fully vested, you might lose those funds.\n*   **You hold company stock in your 401(k).** If the stock becomes worthless when the company shuts down or is acquired by another company, the value of your stock goes with it. This is why it's important to ensure your 401(k) investments are diversified and not solely invested in your company's stock. END
 TITLE: What Happens to Your 401(k) When Your Employer Goes Out of Business? CONTENT: What Options Do You Have for Your 401(k)?\n-----------------------------------------\nOnce you realize your employer is going out of business or being acquired, you should immediately contact your company's 401(k) administrator to stay in the loop about what's happening with your 401(k).\nIf your employer is bought or merges with another company, your 401(k) plan may change, NARPP says. Most likely, your 401(k) money will be automatically folded into the new company's employer-sponsored plan. If the new employer doesn't offer that option, however, you may need to seek out other avenues.\nIf your company is not bought but instead declares bankruptcy and closes its doors, you will not have the option to roll your funds over into a new 401(k) and will need to make a different choice.\nThese are the primary options if your 401(k) cannot be rolled over into a new employer's plan:\n*   **Keep your money in your current 401(k).** Because your plan is likely administered by a third-party investment firm, such as Fidelity or American Funds, you will probably have the option to keep your money where it is. While that may suffice while you deal with the bigger picture of your company going out of business—such as potentially having to find a new job—you may want to move your funds to an investment vehicle where you can begin making contributions for your retirement again.\n*   **Roll over the money into an IRA.** You'll have the choice of a traditional IRA or a Roth IRA. If you roll over your traditional 401(k) into a traditional IRA, you can do so tax-free. But if you roll over your traditional 401(k) into a Roth IRA, you'll owe taxes on the amount invested.\n*   **Withdraw the funds as a cash distribution.** This will trigger federal taxes and possible penalties and is generally discouraged. END
 TITLE: How Are Freelancers Taxed? CONTENT: Are You a Freelancer?\n---------------------\nAt the start of a freelancing journey, many people don't realize that the IRS typically views freelancers as self-employed business owners. The IRS generally considers you to be self-employed if you:\n*   **Do business as a sole proprietor or an independent contractor.** A sole proprietor owns a business by himself or herself. Freelancers who are sole proprietors typically choose to work for one or many different clients; in fields including web development, writing and graphic design. An independent contractor is typically considered a temporary employee and may go through an agency to get clients. Independent contractors can include doctors, dentists and lawyers.\n*   **Belong to a business partnership.** The IRS defines a partnership as two or more people who make contributions to a business, such as labor or money, and share in the profits and losses. Each partner is considered a self-employed person, not an employee. An example of a partnership is a law firm.\n*   **Work for yourself in a part-time capacity.** For example, you might work full time as an engineer but own an electronics repair shop on the side. Or you could be a gig worker, such as a rideshare driver, a handyman, a tutor or a virtual assistant. END
 TITLE: How Are Freelancers Taxed? CONTENT: How Do Taxes Work if You're a Freelancer?\n-----------------------------------------\nAs a self-employed person, you generally must file an annual federal tax return and pay estimated federal taxes every quarter. The taxes you usually must pay are:\n*   **Self-employment tax:** The self-employment tax is a Social Security and Medicare tax that primarily affects self-employed people. It's like the Social Security and Medicare taxes that employers withhold from the paychecks of most employees. If you see the words \"self-employment tax,\" it refers only to Social Security and Medicare taxes and not any other taxes (such as income tax). For self-employed people, the Social Security tax rate for 2020 is 12.4% and the Medicare tax rate is 2.9%, for a total self-employment tax of 15.3%.\n*   **Income tax:** The IRS requires you to file a federal income tax return if your annual net earnings from self-employment (income minus expenses) add up to at least $400. END
 TITLE: How Are Freelancers Taxed? CONTENT: When Do You Pay Freelance Taxes?\n--------------------------------\nIf you expect to owe at least $1,000 in taxes when you file your annual return, the IRS requires making quarterly estimated tax payments. These payments cover both your self-employment and income taxes. At the end of the year, if you wind up owing more than you paid on a quarterly basis, the IRS may slap you with a penalty. That penalty, reflected on your federal tax return, is tacked on to the amount you already owe or comes out of your tax refund.\nAs a freelancer, you're responsible for paying these taxes on your own. Unlike an employer does with paychecks, anyone who pays you as a freelancer does not deduct taxes from the amount of money you receive.\nWhen you earn freelance income, you'll receive what's known as a 1099-MISC form from anyone who paid you more than $600 during each tax year. If the sum is less than $600, the person or organization that paid you isn't required to send a 1099. However, you still must report that income to the IRS. For instance, if a tech company paid you $500 for your writing work over the course of a year, you wouldn't have gotten a 1099 but you would need to report the income. END
 TITLE: How Are Freelancers Taxed? CONTENT: How to Avoid a Huge Freelance Tax Bill\n--------------------------------------\nSince an employer isn't withholding taxes, it's important to carefully track your tax obligations as a freelancer. Otherwise, you could face a bigger-than-expected tax bill. Here are five ways to avoid a nasty tax surprise if you earn freelance income.\n1.  Monitor your quarterly tax payments. The IRS normally expects you to make estimated tax payments before each quarterly deadline. If you don't, you face penalties and interest charges for missing a deadline or skipping payments altogether. Waiting until the next quarterly deadline or lumping all of your payments together at the end of the year doesn't pass muster with the IRS. Use IRS Form-1040 ES to calculate and make estimated tax payments.\n2.  Save for retirement. You can reap tax savings by contributing to a traditional IRA (individual retirement account) or Solo 401(k), or by setting up a SIMPLE IRA or SEP IRA for your freelance business.\n3.  Open a health savings account. A health savings account (HSA) coupled with a high-deductible health insurance plan can lower your tax burden. HSA contributions are tax-deductible.\n4.  Explore tax-saving options. Aside from tax deductions for HSA contributions, freelancers enjoy several tax-saving options. They include tax breaks for education expenses, business meals, business travel, use of your home or car for freelance work, purchases of office supplies and equipment, internet service and other utilities, and health insurance premiums.\n5.  Consider hiring an accountant. A professional may be able to help lower your tax bill by identifying tax deductions that you weren't aware of. For instance, the federal tax reform package passed in 2017 added a 20% deduction on what's known as qualified business income. This deduction applies to many self-employed people, such as sole proprietors and partners, but not all self-employed people. END
 TITLE: How Are Freelancers Taxed? CONTENT: Rules About Tax Deductions\n--------------------------\nWhile tax deductions can ease the financial pain of freelancing, keep in mind that they come with wrinkles. For instance, to qualify for a home office deduction, you in most cases must regularly and exclusively use a certain part of your house (such as a spare bedroom converted into an office) for business. A spare room that you only occasionally use for freelance work likely won't pass the IRS' test. Also, you probably won't be able to count your entire home for tax purposes.\nFurthermore, you might need to undertake the complicated task of itemizing your deductions and keep meticulous records to back up those itemized deductions. If you go the itemization route, you'll need to file a Schedule A form for personal write-offs and a Schedule C form for business write-offs.\nWhat if you don't want to bother with itemizing your deductions? You can take a standard deduction. The IRS advises that you should itemize deductions if the total dollar amount you could deduct exceeds what you'd gain from a standard deduction, or if you can't use the standard deduction. For 2020, the standard deduction is $12,400 for single people or separate filers, $18,650 for heads of household and $24,800 for joint filers. END
 TITLE: How Are Freelancers Taxed? CONTENT: Getting Ready for Tax Time\n--------------------------\nThe IRS offers these suggestions to help you prepare for filing your 2020 tax return by the April 15, 2021, deadline:\n*   **Mark January 15, 2021, on your calendar.** This is the final deadline for making the last quarterly estimated tax payment for the 2020 tax year.\n*   **Start gathering paperwork.** Get a headstart on organizing your tax records for the 2020 tax year.\n*   **Be aware of the recovery rebate credit.** You may qualify for this credit if you didn't receive a pandemic stimulus check in 2020 or if the payments you received were for less than the full amount.\n*   **Consider filing electronically.** If you're going to get a refund, file your return electronically and opt for direct deposit to receive your money faster.\n*   **Use the free tax-filing feature.** If your income for 2020 is $72,000 or under, you can file your federal tax return at no cost through the IRS File Free Program. END
 TITLE: Is My Money Safe During a Recession? CONTENT: Keep Your Money Safe in an FDIC-Insured Bank Account\n----------------------------------------------------\nOne place to safely keep your money is an FDIC-insured bank account. If you have checking and savings accounts with a traditional or online bank, you likely are already protected.\nThe Federal Deposit Insurance Corp. (FDIC), an independent federal agency, protects you against financial loss if an FDIC-insured bank or savings association fails. Typically, the protection goes up to $250,000 per depositor and per account at a federally insured bank or savings association. This includes checking accounts, savings accounts, money market accounts and certificates of deposit (CDs) at traditional banks as well online-only banks. The same $250,000 per-depositor coverage limit applies to accounts at credit unions insured by the National Credit Union Administration, a federal agency. So, for example, if you held a joint savings account with your spouse, you each would have $250,000 in FDIC coverage, so $500,000 on the account.\nIf you're unsure whether your accounts are FDIC-insured, you can check with your institution or look it up on the FDIC's BankFind database.\nAn FDIC-insured account is also a great option for your emergency fund. If you don't already have one, starting an emergency fund can provide a cash cushion in case you lose your job or your work hours are cut during a recession.\nGenerally, your emergency fund should contain enough money to cover at least three to six months' worth of living expenses. But if you're just starting out, set aside as much as you can on a weekly or per-paycheck basis until you feel more comfortable fully funding your emergency account. Anything you can save now could help if your financial situation worsens. END
 TITLE: Is My Money Safe During a Recession? CONTENT: Should You Pay Off Debt in a Recession?\n---------------------------------------\nPaying down debt during an economic downturn can put you in a good position to weather financial turbulence. That's particularly true if you're carrying expensive high-interest debt on credit cards and the like.\nBut even if you can only afford to pay the minimums, it's important to make all your debt payments on time. If you begin missing payments, your credit scores will suffer, putting you in a difficult position if you need credit down the road. Credit scores can also affect your insurance rates and ability to rent an apartment, so do whatever possible to continue making these payments. If you have enough cash on hand to build up your emergency savings _and_ pay off high-interest debt, you'll be in an even better position.\nHowever, you might run into trouble making debt payments during a recession. If that's the case, ask your lender about payment relief or look into a debt consolidation loan or 0% intro APR balance transfer offer on a credit card. You can also explore credit counseling to help get a handle on your debt. END
 TITLE: Is My Money Safe During a Recession? CONTENT: Should You Invest D    uring a Recession?\n-------------------------------------\nWhile it comes with risks, investing during a recession might be a viable option if you have a healthy emergency fund, aren't carrying big balances on high-interest credit cards, and are comfortable with the possibility of losing money. If you are looking for the safest place for your money during a recession, this isn't it. But if you have extra money and are looking at getting into an investment when it's less expensive, you could reap benefits.\nEvery investor should keep in mind that stocks and other investments could experience extreme ups and downs during a recession. But at the same time, a recession could push down prices for stocks and other investments, providing an opportunity to buy at a low cost and then see your investments gain value when the economy rebounds. Just know that there are no guarantees that this strategy will pay off in the short term or long term.\nIf you decide to take the investment plunge, there are a number of ways to do it. You could buy stocks and other investments through a traditional brokerage firm or online brokerage firm, for instance. Aside from individual stocks, which give you a direct ownership stake in a company, other investments include:\n*   **Mutual funds and exchange traded funds (ETFs)**: These funds buy an array of stocks, bonds and other securities.\n*   **Bonds**: With a bond, you're essentially lending money to a corporation or government in exchange for the promise of being paid back with interest.\nRather than buying stocks and other investments on your own, you might want to invest through a 401(k) or IRA (individual retirement account). Both of these accounts are geared toward saving for retirement.\nIf you're nervous about doing DIY investing, you also might want to enlist help from a traditional financial advisor or a (non-human) robo-advisor, which makes automatic investment decisions based on your preferences. END
 TITLE: Is My Money Safe During a Recession? CONTENT: How to Protect Your Credit During a Recession\n---------------------------------------------\nProtecting your money during a recession also involves protecting your credit.\nAmid an economic downturn, your financial situation could take a turn for the worse, resulting in your credit scores going down. Keep in mind, though, that a recession itself doesn't directly affect your credit scores.\nSo, how can you maintain your credit during a recession? Credit scores are computed based on how you manage your debt. If you lose your job and aren't able to keep up with your bills, your credit scores could suffer. Therefore, it's important to take steps to safeguard your credit if you're experiencing financial difficulties or in case you might encounter financial problems:\n*   **Keep an eye on credit reports and credit scores.** This can help you track how changes in your finances might be affecting your credit. With this information in hand, you can take action to shore up your credit, such as disputing an inaccuracy on your credit reports or tweaking your finances to improve your credit. Experian's free credit monitoring tool can help with this effort.\n*   **Pay off debt.** To the extent possible, reduce your debt so you can put yourself in a better financial position. To come up with more money to pay off debt, look at ways to trim spending.\n*   **Communicate with lenders.** Payment history represents the biggest factor in calculating your credit scores, so it's vital to keep up with your debt payments. But if you've fallen on hard times, reach out to your lenders to ask about ways they can ease your debt load, such as deferring payments or lowering your interest rate.\n*   **Stay within your budget.** A budget can be a crucial tool to help navigate a recession by helping you closely track your expenses and earmark portions of your income for various needs. This can help keep your finances in shape and can show how you may need to adjust your budget if you're already feeling financial strain. If you haven't created a budget, it's never too late to set up one. END
 TITLE: Is My Money Safe During a Recession? CONTENT: Tips for Recession-Proofing Your Finances\n-----------------------------------------\nLet's say you've smoothly sailed through an economic downturn. That certainly can feel reassuring. However, what if the economic waters became choppy for you in a few months? Would you be prepared? Here are three tips for recession-proofing your finances:\n1.  Watch your debt. Reduce your existing debt as much as possible and resist taking on more debt.\n2.  Establish an emergency fund. You never know when a recession might hit your finances. Therefore, you should create an emergency fund if you don't already have one. This pool of money can help you cover everyday expenses during a tough time.\n3.  Don't overextend yourself. To ease potential financial harm during a recession, be sure to live within your means by sticking to a budget. In other words, focus on paying for the basics and avoid splurging on extras like a new TV or a ski trip. END
 TITLE: Are More Drivers Financing New or Used Cars? CONTENT: What Are Consumers Financing More in 2020?\n------------------------------------------\nUsed cars clearly won the financing race when it came to cars purchased in the second quarter (Q2) of 2020, according to Experian's State of the Automotive Finance Market Report. In Q2 2020, used cars made up 59.3% of all vehicle financing, compared with 40.8% for new cars, Experian data shows. Those figures were nearly the same in the second quarter of 2019.\nThe tally shows 85.4% of new cars sold were financed, either with a loan or lease, compared with 36.8% of used cars. In the Q2 2019, those figures were 87.6% for new cars and 40.3% for used cars. Many more vehicles sold in the U.S. are used rather than new—more than twice as many last year, according to Edmunds—so even while most new cars are financed, sheer numbers mean used cars still comprise the majority of the finance market.\nMeanwhile, the percentage of new cars that are leased fell in Q2 2020, according to Experian. In this year's second quarter, the share of all new cars that were leased stood at 25.8%, down from 32% during the same period in 2019. The share of used cars in the leasing market barely budged, going from 9.7% in the second quarter of 2019 to 9.5% in the second quarter of 2020. END
 TITLE: Are More Drivers Financing New or Used Cars? CONTENT: New vs. Used Auto Loans by Credit Score\n---------------------------------------\nThe automotive report also revealed differences in the credit scores for consumers financing used cars versus those financing used cars. Average credit scores for buyers of new cars were in the low 700s during the second quarter, while average credit scores for buyers of used cars ranged from the low to high 600s. In both categories, average credit scores are generally on the rise.\nSource: Experian State of the Automotive Finance Market\nSource: Experian State of the Automotive Finance Market Report\nNow that you've digested all of that information, you might be wondering: What's a good credit score for an auto loan, and what's the lowest credit score possible? Unfortunately, there's no clear answer.\nLenders use several credit scoring models to determine whether you'll be approved for an auto loan, and what the interest rate and other terms will be. However, the better your credit score is, the better your odds of being approved will be. Also, you stand a better shot at favorable terms if you have a credit score that's desirable in the eyes of the lender.\nEven if you have what's considered a low credit score, you very well could be approved for an auto loan. Standards vary from lender to lender. There's no set cutoff point between a credit score that'll lead to an approval of your loan application and a credit score that'll lead to rejection of your application. Of course, a higher score tends to result in a lower interest rate and other favorable terms.\nThe Experian report analyzed the creditworthiness of borrowers who finance used and new vehicles. Credit score ranges can vary based on the scoring model, the lender, the type of loan and other factors. For this report, Experian defined the ranges as follows:\n**Super prime**: 781-850  \n**Prime**: 661-780  \n**Nonprime**: 601-660  \n**Subprime**: 501-600  \n**Deep subprime**: 300-500\nExperian found that most new car financing is done by those with the highest (prime or better) credit scores, while nonprime and subprime buyers make up a combined 46.9% of used car loan borrowers. Subprime loans for new cars are at an eight-year low, according to the Experian report. END
 TITLE: Are More Drivers Financing New or Used Cars? CONTENT: Is It Easier to Finance a Used or New Car?\n------------------------------------------\nWhether you choose to finance a used car or a new car, there are benefits and trade-offs to be considered in either case. END
 TITLE: Best Ways to Pay for Home Improvements CONTENT: Home Equity Line of Credit (HELOC)\n----------------------------------\nIf you have good to excellent credit, you may qualify for a home equity line of credit (HELOC), a form of revolving credit secured by the equity in your home. You can usually borrow 60% to 85% of your home's assessed value, minus the remaining balance of your mortgage.\nMost HELOCs allow you to draw on your credit for a \"draw period\" of up to 10 years. During this time, you'll make interest-only payments on any money borrowed. (Some lenders accept principal payments during the draw period.) After the draw period, you typically have 20 years to pay off the loan balance, or you can refinance the loan. END
 TITLE: Best Ways to Pay for Home Improvements CONTENT: Home Equity Loan\n----------------\nA home equity loan is a second mortgage that uses your home's equity as collateral. You can generally borrow 75% to 85% of your equity at a fixed interest rate and pay it back in fixed monthly payments over five to 30 years. END
 TITLE: Home Equity Loan vs. HELOC: What’s the Difference? CONTENT: Both home equity loans and HELOCs use the equity in your house as collateral—that is, the portion of your home's appraised value that belongs to you outright. To determine your equity if you're currently paying a mortgage on the house, you must find out from your lender how much you still owe on your mortgage, and deduct that amount from the appraised value of the home.\nFor example, let's say you took out a $300,000 mortgage on your house and you've paid down $100,000 so still owe $200,000 on the loan principal. In the meantime, property values in your neighborhood have climbed, and the appraised market value of your well-maintained house has increased to $350,000. Your equity in the house is its appraised value minus the unpaid mortgage amount: $350,000 - $200,000 = $150,000.\nYou typically cannot get a home equity loan or HELOC for the full amount of your equity in the house; lenders typically limit loan amounts to 75% to 80% of your total equity. If they're concerned you won't be able to repay the debt, they may insist on a smaller percentage of equity, or decline to issue you any loan at all, no matter how much equity you have. Continuing with the above example, with $150,000 in equity, your borrowing will be limited to between $112,500 and $120,000. END
 TITLE: Home Equity Loan vs. HELOC: What’s the Difference? CONTENT: What Is a Home Equity Loan?\n---------------------------\nA home equity loan is a lump sum of money you borrow against the equity in your home. Home equity loans are often called second mortgages. Like your primary mortgage, a home equity loan is secured by your home—meaning the lender can seize the property if you fail to repay the loan as agreed.\nThe current annual percentage rate (APR) on home equity loans start at about 3% and range to 12% or higher. As with interest rates on most loans, the rate you qualify for will depend on factors including your credit score (with higher scores getting the lowest interest rates), income, and how much you spend on other debts each month. END
 TITLE: Home Equity Loan vs. HELOC: What’s the Difference? CONTENT: What Is a Home Equity Line of Credit (HELOC)?\n---------------------------------------------\nA home equity line of credit gives you access to a pool of money—the credit line, or borrowing limit—that you can draw from as needed by writing checks or making charges or cash withdrawals with a dedicated card. You don't pay interest or have to make payments until you use your credit, and then, as with a credit card, you can make payments of any amount (as long as you meet a monthly minimum) to pay down the balance as quickly or as gradually as you are able. The longer you take to pay the balance, the more you'll pay in interest charges.\nUnlike a credit card account, which typically stays open as long as you continue using it and making required payments, a HELOC has a fixed lifespan that gets divided into two phases:\n*   **The draw period**: You can use the account to borrow and repay money freely. This period typically lasts 10 years, at which point the loan moves into the repayment period.\n*   **The repayment period**: You can no longer borrow against the credit line during this time, and must repay the outstanding balance. The repayment period typically lasts 20 years.\nThe lengths of your draw period and repayment period will be specified in the HELOC loan agreement.\nInterest rates on HELOCs are often variable, tied to published market rates and currently range from a low of 2.5% to as much as 21%. The rate you're offered will depend on your credit scores, income, and the lender's policies. END
 TITLE: Home Equity Loan vs. HELOC: What’s the Difference? CONTENT: Differences and Similarities Between a Home Equity Loan and a HELOC\n-------------------------------------------------------------------\nThe main difference between a home equity line of credit and a HELOC concerns the way you receive and repay what you borrow. Depending on the way you intend to use the borrowed funds, one or the other may be considerably more affordable in terms of interest charges.\nWith a home equity loan, you receive the full amount of your loan once the loan is approved, and you must repay it over a set number of fixed monthly payments. Repayment periods typically range from five to 10 years, but 20- and even 30-year terms are possible. The amount of interest you'll pay over the life of the loan is essentially known from the start; you may be able to save some interest by repaying the loan early, but some lenders charge penalties for paying loans off ahead of schedule.\nWith a HELOC, you can potentially save on interest charges if you keep your withdrawals relatively small and pay down your balances between expenditures.\nYou may be able to deduct interest payments on home equity lines of credit and HELOCs when you file your federal income taxes, just as you do primary mortgage interest charges. Through at least 2026, you may only deduct interest on home equity loans or HELOCs if the loan proceeds are used to make home improvements. Your total annual deduction on interest from all mortgage, home equity and HELOC loans cannot exceed $750,000. END
 TITLE: Home Equity Loan vs. HELOC: What’s the Difference? CONTENT: Alternative Types of Loans\n--------------------------\nHome equity loans and HELOCs can be welcome sources of ready cash for qualifying homeowners, but they carry significant risks: If you are unable to keep up with your payments on a home equity loan or HELOC, the lender has the right to foreclose and take possession of your home.\nAlternatives to home equity loans and HELOCs that don't risk jeopardizing your home include the following:\n*   **Personal loan**: A personal loan is a form of unsecured credit, which means it doesn't require you to put up property as collateral against the debt. Loan amounts can range from $1,000 to $10,000, and interest rates vary widely, according to credit score and income level. You may be able to qualify with a fair credit score, but a credit score in the good range or better will give you access to a wider range of choices.\n*   **Personal line of credit**: Banks and credit unions allow borrowers with good credit to open personal lines of credit—revolving credit accounts that don't require collateral or that use the contents of a certificate of deposit (CD) as collateral. Like HELOCs, these credit lines allow withdrawals and payments in variable amounts, and only charge interest on outstanding balances. Personal lines of credit have finite draw and repayment periods, which are typically shorter than those for HELOCs—as little as three to five years each.\n*   **Peer-to-peer loans**: These can be had through online financial institutions that match investors wishing to issue loans with borrowers seeking loans. Known as peer-to-peer or P2P lenders, these sites don't always check credit scores, but they do typically require evidence of income and other assets. Peer-to-peer platforms can be a good resource for smaller loans (typically $5,000 or less). Repayment periods on P2P loans are typically fairly short, five years or less.\nA home equity loan or HELOC can be a tremendous resource for homeowners seeking cash. While there are no limitations on how you use them, using loan proceeds for home improvements can also offer some tax benefits. Which option is better for you may depend on how you plan to use the funds. A home equity loan may make sense for a single major renovation, which will cost a large sum all at once. On the other hand, a HELOC may make more sense if you're considering a series of smaller maintenance projects, and can save interest costs by paying back each expenditure before beginning a new one. END
 TITLE: Home Equity Loan vs. HELOC: What’s the Difference? CONTENT: Make Sure Your Credit Is Ready\n------------------------------\nNo matter how you decide to cover your costs, whether it's with a home equity loan or HELOC, your credit will be an important factor in how much it'll ultimately cost. If possible, check your credit three to six months before submitting your application. That'll give you time to address any issues you might find and potentially improve your scores before you borrow. You can check your credit report for all three credit bureaus for free through AnnualCreditReport.com. Your free credit report and scores are also available through Experian as well. END
 TITLE: What Are the Best Short-Term Investing Options? CONTENT: High-Yield Savings Account\n--------------------------\nAs the name suggests, a high-yield savings account provides a higher interest rate than a traditional savings account does. The interest rate on a savings account is expressed as APY, or annual percentage yield. Online banks frequently offer higher APYs than regular banks. Why? Because, unlike online banks, regular banks must cover the costs associated with operating bank branches.\nWhile a high-yield account from an online bank might be more attractive than a lower-yield account from a traditional bank, keep in mind that a higher APY might be offset by minimum deposit amounts and minimum (and possibly maximum) balance requirements.\nRemember that an account's APY can fluctuate regularly, based on overall interest rates. As of October 2020, the highest APYs for high-yield savings accounts ranged from 0.80% to 1.10%—that's down from around 2% last year at the same time. However, it handily beats the average standard savings account APY of 0.09%.\nThis investment option is best if you'll need to access your money within the next one or two years.\n*   **Risk level**: Very low. The Federal Deposit Insurance Corp. (FDIC) insures deposits at member banks up to $250,000, while the National Credit Union Administration (NCUA) insures deposits at all federal credit unions and most state-chartered credit unions up to $250,000.\n*   **Next step**: Shop around for a high-yield savings account with a financial institution whose deposits are insured. Online banks to check out include Ally, Axos, Chime, CIT, Marcus by Goldman Sachs, Synchrony, Varo and Vio. END
 TITLE: What Are the Best Short-Term Investing Options? CONTENT: Money Market Account\n--------------------\nSimilar to a high-yield savings account, a money market account often pays a higher APY than a traditional savings account. A money market account also might issue a debit card and let you write checks. This kind of account might, however, impose fees and minimum deposit requirements, and limit the number of transactions allowed per month.\nThis investment option is best if you might need your money within the next one or two years.\nAs of October 2020, several financial institutions offered money market accounts with APYs of 0.60% to 0.70%, compared with the average money market APY of 0.11%.\n*   **Risk level**: Very low. The FDIC insures money market account deposits at banks up to $250,000, and the NCUA insures deposits at most credit unions up to $250,000.\n*   **Next step**: You can open a money market account at an online bank, a traditional bank, a credit union or a financial services company. Financial institutions that offer these accounts include BMO Harris, Charles Schwab, CIT, Discover, Sallie Mae and TD Ameritrade. END
 TITLE: What Are the Best Short-Term Investing Options? CONTENT: Certificate of Deposit (CD)\n---------------------------\nA CD is a savings account that holds a set amount of money for a period of time, such as six months, one year, five years or even 10 years. With a CD, a bank or credit union generally offers a higher APY than it would for a traditional savings account.\nWhen you cash in a CD, you get the money you originally deposited plus the interest you've accumulated. But if you pull out the money before the CD reaches what's known as the maturity date (such as one year from the time you deposited the money), you might be hit with a financial penalty. Many CDs require minimum deposits of $500 or more.\nThis investment option is best if you might need your money within the next two to five years.\nAs of October 2020, average APYs for CDs ranged from 0.27% for a one-year CD to 0.43% for a five-year CD. One of the highest rates was 1.5% for a five-year CD.\n*   **Risk level**: Low. The FDIC and NCUA typically insure CDs up to $250,000. However, you risk losing some of your money if you make a CD withdrawal before the maturity date.\n*   **Next step**: Investigate APYs, penalties and minimum deposit requirements for CDs. Banks that offer CDs include Ally, BankDirect, Capital One, CIT, Discover, Marcus by Goldman Sachs and Synchrony. END
 TITLE: What Are the Best Short-Term Investing Options? CONTENT: Short-Term Bond Fund\n--------------------\nGenerally, a short-term bond fund invests in an array of bonds that mature in one to three years. Governments and corporations are among those that issue short-term debt in the form of bonds.\nReturns on short-term bond funds vary. As of September 2020, investment broker Vanguard listed the average annual return for its short-term bond fund 4.89% over a one-year period and 3.42% over a three-year period.\nThis investment option is best if you might need your money within the next two to three years.\n*   **Risk level**: Low. Short-term bond funds typically are less risky than stocks but a bit riskier than investment vehicles like savings accounts. They aren't insured by FDIC or any other government agency.\n*   **Next step**: Contact an investment broker if you're interested in exploring short-term bond funds. Among brokers that sell them are Charles Schwab, Fidelity, iShares and Vanguard. END
 TITLE: What Are the Best Short-Term Investing Options? CONTENT: Money Market Mutual Fund\n------------------------\nMoney market mutual funds, also called money market funds, invest in highly liquid short-term debts. These types of debt include CDs and U.S. Treasuries. Money market funds are not the same as money market accounts.\nAnnual returns for these funds typically range from 1% to 3%. A bonus is that money market funds don't charge any fees when your cash goes in or out.\nThis investment option is best if you might need your money within the next two to three years.\n*   **Risk level**: Low. Money market mutual funds are viewed as less risky than stocks or bonds. They're not insured by the FDIC or NCUA, though.\n*   **Next step**: Take a look at investment brokers that sell money market mutual funds, including Fidelity and Vanguard. END
 TITLE: What Are the Requirements for Bankruptcy? CONTENT: Why Do People File for Bankruptcy?\n----------------------------------\nNo one's financial circumstances are exactly the same when it comes to bankruptcy. But many bankruptcy filers head to court for similar reasons. Here are the three most common reasons for bankruptcy filings, according to the American Bankruptcy Institute:\n1.  Job loss: The loss of a job can cause tremendous financial troubles, such as falling behind on your mortgage payments, auto loan payments and other debts.\n2.  Medical costs: A health care issue like a catastrophic illness or injury can leave you grappling with medical debt.\n3.  Divorce: Ending a marriage can heap debt on one spouse or both spouses. The change in financial situation can make it even harder to pay off these debts. END
 TITLE: What Are the Requirements for Bankruptcy? CONTENT: Who Qualifies for Chapter 7 Bankruptcy?\n---------------------------------------\nChapter 7 bankruptcy, also called straight or liquidation bankruptcy, can wipe out many types of unsecured debt. Not just anyone can file for Chapter 7 bankruptcy, though. Here are some of the requirements to pursue Chapter 7 bankruptcy.\n*   The average of your monthly income in the previous six months must be lower than the median income for the same-sized household in your state; otherwise, you must pass what's known as a means test. This test determines whether your disposable income is high enough to make partial payments to unsecured creditors. If you fail the means test, don't despair: You still might qualify for Chapter 13 bankruptcy.\n*   You can't have filed for Chapter 7 bankruptcy in the previous eight years.\n*   You can't have filed for Chapter 13 bankruptcy in the previous six years.\n*   If you attempted to file for Chapter 7 or 13 bankruptcy but your case was tossed out, you must wait 181 days or more before refiling.\n*   You typically must finish an individual or group credit counseling course offered by an approved credit counseling agency within 180 days before you file for bankruptcy.\n*   Even if you're eligible to file for bankruptcy, a judge could throw out your case if it's found you're attempting to defraud creditors. An example: You run up charges on a credit card with the goal in mind of declaring bankruptcy to steer clear of paying the debt. END
 TITLE: What Are the Requirements for Bankruptcy? CONTENT: Who Qualifies for Chapter 13 Bankruptcy?\n----------------------------------------\nThe requirements for Chapter 13 bankruptcy differ from the requirements for Chapter 7 bankruptcy. Here are some of them.\n*   You must have sufficient income to make the monthly debt payments outlined in your bankruptcy plan.\n*   Your unsecured debts (such as credit cards and medical bills) must be less than $419,275, and your secured debts (like mortgage and car payments) must be less than $1,257,850. These dollar amounts are in effect until April 2022. Debt limits change every three years.\n*   If you attempted to file for Chapter 7 or 13 bankruptcy but your case was tossed out, you must wait 181 days or more before refiling.\n*   You must provide proof that you filed federal and state income tax returns for the past four years.\n*   You typically must finish an individual or group credit counseling course offered by an approved credit counseling agency within 180 days before you file for bankruptcy. END
 TITLE: What Are the Requirements for Bankruptcy? CONTENT: How Does Filing for Bankruptcy Affect Your Credit?\n--------------------------------------------------\nFiling for bankruptcy is one of the worst things you can do for your credit since it's a signal to future creditors that you were unable to meet your debt obligations. Fortunately, a bankruptcy filing doesn't leave a permanent mark on your credit reports, and you can start rebuilding your credit while you're trying to get your finances in order.\nNo matter whether you've filed for Chapter 7 or Chapter 13 bankruptcy, it'll show up on credit reports for card issuers and other lenders to see. Chances are, lenders will take your bankruptcy into consideration when you apply for credit. Once you've wrapped up the bankruptcy process, your credit reports will indicate that the bankruptcy and the debts covered by your filing have been discharged.\nA Chapter 7 bankruptcy will stay on your credit reports and affect your credit scores for 10 years from the date your court case is filed; a Chapter 13 bankruptcy stays on your credit for seven years. As time goes by, however, a bankruptcy's effect on your scores slowly decreases.\nWhen you apply for credit, lenders might not OK your application unless the bankruptcy has been discharged. Even then, you might find it difficult to obtain certain kinds of loans. If your application does go through, you might be confronted by high interest rates and other less-than-favorable lending terms.\nIt's worth noting that some lenders might view a Chapter 13 filing less negatively than a Chapter 7 filing. Why? They might consider a Chapter 13 filer less of a credit risk than a Chapter 7 filer. That's because in a Chapter 13 case, you repay all or part of your debts over a three- to five-year period, whereas debts are erased in a Chapter 7 case.\nAlso, keep in mind that if your FICO® Score☉ was good before filing for bankruptcy, you'll likely see a steeper drop in your score than if your score was already low. END
 TITLE: What Are the Requirements for Bankruptcy? CONTENT: How to Start Rebuilding Your Credit After a Bankruptcy\n------------------------------------------------------\nOne of the most important things to remember about a bankruptcy is that it won't linger on your credit reports forever. More good news: You can do a lot to start rebuilding your credit before the bankruptcy disappears from your credit reports. Here are six steps to take.\n1.  Always make on-time payments. When your credit scores are calculated, your payment history plays a major role in the most commonly used credit scoring models. On-time credit card and loan payments demonstrate that you're a responsible borrower, and can help bump up your credit scores.\n2.  Handle past-due accounts. If you miss payments on household bills, such as those for your utilities and cellphone service, accounts can be charged off and turned over to bill collectors. When an account goes to collections, it can harm your credit. Getting current on past-due accounts can prevent them from dragging down your scores.\n3.  Boost your credit scores. On-time bill payments can also help lift your credit scores if you take advantage of Experian Boost™† . This free service counts your on-time monthly payments on your credit report, potentially leading to an instant rise in your Experian credit scores.\n4.  Keep credit card balances low. Did you know that you don't need to maintain a balance on a credit card to preserve good credit overall? Actually, paying off your full credit card balances and consistently doing so every month can be one of the fastest routes to better credit.\n5.  Start an emergency fund. Putting aside some money for emergencies, such as unexpected car repairs or medical bills, can keep you from missing bill payments or running up credit card debt. Even stashing enough money to cover just one monthly rent payment might help keep you out of financial trouble.\n6.  Consider a secured credit card. Unlike unsecured credit cards, secured cards require a security deposit. This allows companies to issue credit cards to those who don't necessarily have excellent scores. If you miss payments on a secured credit card the issuer can keep your deposit. The amount of the security deposit usually dictates your credit limit. Be sure the issuer of a secured card will report your payment activity to all three credit bureaus (Experian, TransUnion and Equifax). Using a secured card responsibility could help improve your credit scores, but missing payments and defaulting could leave you worse off than before. END
 TITLE: What Are the Requirements for Bankruptcy? CONTENT: How to Seek Professional Advice\n-------------------------------\nYou don't have to go it alone when you're weighing whether to file for Chapter 7 or Chapter 13 bankruptcy and, then, if you decide to proceed. Check out these resources.\n*   **Bankruptcy attorney**: You can file for bankruptcy without a lawyer, but you might want to visit with a lawyer if you're unsure how to move forward.\n*   **Credit counseling agency**: A credit counseling agency might be able to work with you on a debt repayment plan so you can avoid bankruptcy. The U.S. Department of Justice maintains a list of federally approved credit counseling agencies.\n*   **Financial advisor**: A financial advisor might be able to guide you through establishing a budget and creating a debt repayment plan. END
 TITLE: How Long Does a Late Mortgage Payment Affect Your Credit? CONTENT: How a late payment affects your credit depends on several factors, including the type of credit score involved and your overall credit history. Here are some typical outcomes of a late payment:\n*   A late payment could remain on your credit reports for as long as seven years and hurt your credit score the whole time.\n*   A late payment will cause a more severe decline in your credit score if you have an excellent credit score versus a poor one.\n*   Missing several payments in a row will damage your credit more than missing only one payment. And notably, missing several mortgage payments could result in foreclosure, which is one of the most damaging negative marks on your credit.\n*   Late payments on several accounts can do more harm than a late payment on just one account.\nOver time, the effect of a late payment on your credit fades. If you responsibly make on-time payments on all your debt obligations going forward, you could see your credit scores bounce back to where they were before you missed a mortgage payment. END
 TITLE: How Long Does a Late Mortgage Payment Affect Your Credit? CONTENT: When Do Late Payments Show Up on Your Credit Report?\n----------------------------------------------------\nA late payment appears on your credit report when you've gone at least 30 days past the due date. You might face penalties if you miss the due date by even just one day, but a late payment won't harm your credit if you bring your account up to date before the 30-day window closes. Cross that 30-day threshold, however, and you can expect to see the late payment reflected on your credit report within a month or two of the late payment being recorded. END
 TITLE: How Long Does a Late Mortgage Payment Affect Your Credit? CONTENT: Do Mortgage Payments Have a Grace Period?\n-----------------------------------------\nGrace periods on mortgages vary from lender to lender, but normally last about 15 days from your due date. So, let's say your mortgage payment is due on the first day of each month. If you've got a 15-day grace period, you'd be given until the 16th of the month (or the first business day after that) to make your payment without being penalized.\nNow, if you end up paying after the grace period ends, you could be hit with a late fee of 3% to 6% of your monthly payment. So, if the fee for making a late payment is 5% and your monthly mortgage payment is $1,500, you'd be zapped for an extra $75.\nThe consequences can be much more dire if you continue to miss payments.\nIf you've gone three consecutive months without making a payment, the lender might list you as being in danger of foreclosure and notify you that it plans to move ahead with foreclosure in another 30 days.\nAfter 120 days (four months) of missed payments, the lender may initiate the foreclosure. If foreclosure comes to pass, the lender will take possession of the home and you'll be forced to move out. Additionally, the foreclosure will be reflected in your credit history, which can further drag your scores down and make it much harder to be approved for another mortgage in the near future. END
 TITLE: How Long Does a Late Mortgage Payment Affect Your Credit? CONTENT: How to Avoid Missing Mortgage Payments\n--------------------------------------\nTo avoid the penalties that accompany missed mortgage payments, follow these four tips to help keep yourself on track:\n1.  Set up alerts and reminders. If you're the forgetful type, calendar notifications can be a useful reminder that your mortgage payment is due.\n2.  Arrange automatic payments. Just be sure you'll have enough money in your bank account each month to cover the payment. You may be able to set up automatic payments through either your bank or your lender, so be sure to first explore which option works best for you.\n3.  Stay connected. If your lender has an app, download it so you can more easily track and pay your mortgage.\n4.  Look for help if you need it. If you missed a payment because you're struggling financially, mortgage relief programs and other options are available to help. Ask your lender if it offers forbearance, which could enable you to make temporarily reduced payments or to pause payments altogether if you're dealing with a hardship such as job loss. You might also qualify for a loan modification program that may, for instance, lower the interest rate or extend the period for paying off the loan. That could lead to more manageable monthly payments. If you're still not sure what to do, contact a local housing counselor. You can find one in your area by visiting the website of the U.S. Department of Housing and Urban Development (HUD).\nIn the wake of widespread financial instability caused by the coronavirus pandemic, mortgage lenders and the government are offering assistance to those affected, including foreclosure protection. Learn more about what's available here. END
 TITLE: How Long Does a Late Mortgage Payment Affect Your Credit? CONTENT: How to Recover From a Late Mortgage Payment\n-------------------------------------------\nIf you've made a late mortgage payment, don't let it get you down. There are a number of things you can do to get your credit back in shape:\n*   **Pay all of your bills on time, in addition to your mortgage.** Payment history makes up 35% of your FICO® Score☉ , so a long history of on-time payments help undo credit damage caused by a missed mortgage payment.\n*   **Stay on top of your credit utilization ratio.** This ratio compares the total amount of credit available to you with the amount of credit you're using. A lower ratio is better. Typically, it's best to ensure your utilization ratio stays under 30%, but the lower, the better. Credit utilization constitutes 30% of your FICO® Score.\n*   **Bring current any past-due accounts.** Late payments will continue to drag down your scores if they keep piling up. If you've already missed one payment, bring an account current before another late payment is added to your credit history.\n*   **Call for backup.** When you're running into trouble paying your mortgage or other bills, it might be worthwhile to visit with a certified credit counselor, work out a debt management plan to wipe out your debt or take out a debt consolidation loan. END
 TITLE: Best Ways to Prepare Your Finances for Holiday Spending CONTENT: Make a Shopping List (and Check It Twice)\n-----------------------------------------\nMaking a list can help you organize your holiday shopping—including who's getting gifts this year—and your holiday finances. Sure, you can go the paper-and-pen route to develop your list. But apps are available to offer some elf-like assistance. Among them are Gift List Diary, GiftPlanner, Giftster and Santa's Bag.\nHowever you decide to put together that list, figure out who the gift recipients will be and how much you feel comfortable spending on each person. You could set a $50 limit per relative and $25 limit per friend, for example.\nDevising this list can help you come up with an overall holiday budget, and sticking to the list can help you avoid overspending. In a 2019 Experian survey, 60% of Americans confessed spending too much during the holiday season.\nWhile striving to keep your budget in line, don't overlook folks who you'd feel bad leaving off your shopping list, including neighbors, co-workers and kids' teachers. But don't feel guilty if you need to spend less than you might have in previous years. A simple gesture such as a card with a small box of treats will still be appreciated. Or consider DIY gifts. A DIY item lends a personal touch and can save you money. It could be a tin of chocolate fudge, a homemade candle, a handcrafted necklace, a unique wooden toy or even a \"gift certificate\" for a home-cooked meal. Be creative and enjoy your role as Santa's \"cobbler.\" END
 TITLE: Best Ways to Prepare Your Finances for Holiday Spending CONTENT: Count Your Cash\n---------------\nCheck your checking and savings accounts, and add up how much cash you have available for holiday spending. Coupled with making a shopping list, assessing your cash situation will help determine how much money you'll have to make it through the holiday season. If possible, set aside your available cash in a dedicated holiday fund and don't spend more than what's in the fund. END
 TITLE: Best Ways to Prepare Your Finances for Holiday Spending CONTENT: Be Realistic\n------------\nFor many people, this year will mean cutting back on gift giving. Therefore, commit to buying only what you can afford. Family members and friends should understand if you find yourself in tough circumstances and aren't able to be as generous as you typically are. You might even elect to step away from some gift-giving traditions altogether, such as the annual gift exchange at work. END
 TITLE: Best Ways to Prepare Your Finances for Holiday Spending CONTENT: Squeeze Extra Money From Your Budget\n------------------------------------\nHunting for ways to cut costs so you can allocate more money for holiday shopping? Here are five suggestions.\n1.  Examine how much you're spending on food. Can you cut back on dining out? Can you trim your grocery bill? You can put these savings toward holiday expenses.\n2.  Look at cutting the cord. Maybe you've signed up for several video-streaming services and you've still got cable TV. Can you carve out more money for holiday shopping by dumping cable?\n3.  Put off purchases for yourself. Chances are, you can delay buying a new pair of shoes or a new TV until after the holidays.\n4.  Kick the coffee shop habit. You may love buying a couple of lattes a day at your favorite coffee shop, but those cups can add up pretty fast. Consider making coffee at home, at least until the holidays are over, to trim the budget for your daily brew.\n5.  Sign up for shopping apps. These may allow you to collect money on everyday purchases. Try Checkout 51, Ibotta, Rakuten or Wikibuy.\nDo the Credit Card Math\n-----------------------\nBefore you go shopping, decide how much you can afford to put on your credit card without going into holiday debt.\nIf you lean on holiday shopping to rake in credit card rewards, scrutinize the amount of cash on hand you have as well as the extra rewards you'll accumulate at the end of the buying season (and in January). This enables you to calculate how much you can reasonably charge to maximize rewards without erasing their value by being forced to pay interest on purchases.  \nMaximize Your Credit Card Rewards\n---------------------------------\nIf you've been saving your earned points or cash back, you could save at least some of your holiday budget by cashing in those rewards. Rewards often can be used for gift cards that you could then use to buy gifts—or just give the gift cards, since you know that's what the kids want anyway. Or get cash back and use that to pay for purchases. Just be sure you request your rewards in time to use them for the holidays.  \nConsider an Intro 0% APR Offer\n------------------------------\nConsider applying for a credit card with a 0% intro APR on purchases. If you were already looking into a new card and would like to earn some rewards and an intro bonus, consider applying for a card that not only has the features you want but also offers promotional interest-free financing for your holiday purchases. This is only a good option if you're sure you can pay off the balance before the intro APR period ends.\nThe Chase Freedom Unlimited® is a good option in this category. It offers a 0% intro APR on purchases for 15 months, after which your rate will be 14.99% to 23.74% variable depending on your creditworthiness. You can also earn an introductory bonus of $200 after spending $500 in your first 3 months with the card—a great way to capitalize on your holiday spending. Visit Experian CreditMatch™ for the rewards credit card offers based on your credit profile.\nThe Bottom Line\n---------------\nTo ensure your holidays are the happiest they can be, map out your spending now, just like Santa plots his route every year. From making a shopping list to evaluating your cash situation to looking into 0% intro APR credit card offers, fill your bag with the right financial tools and enter the new year with the gift of financial stability. END
 TITLE: Best Ways to Prepare Your Finances for Holiday Spending CONTENT: Do the Credit Card Math\n-----------------------\nBefore you go shopping, decide how much you can afford to put on your credit card without going into holiday debt.\nIf you lean on holiday shopping to rake in credit card rewards, scrutinize the amount of cash on hand you have as well as the extra rewards you'll accumulate at the end of the buying season (and in January). This enables you to calculate how much you can reasonably charge to maximize rewards without erasing their value by being forced to pay interest on purchases. END
 TITLE: Best Ways to Prepare Your Finances for Holiday Spending CONTENT: Maximize Your Credit Card Rewards\n---------------------------------\nIf you've been saving your earned points or cash back, you could save at least some of your holiday budget by cashing in those rewards. Rewards often can be used for gift cards that you could then use to buy gifts—or just give the gift cards, since you know that's what the kids want anyway. Or get cash back and use that to pay for purchases. Just be sure you request your rewards in time to use them for the holidays. END
 TITLE: Best Ways to Prepare Your Finances for Holiday Spending CONTENT: Consider an Intro 0% APR Offer\n------------------------------\nConsider applying for a credit card with a 0% intro APR on purchases. If you were already looking into a new card and would like to earn some rewards and an intro bonus, consider applying for a card that not only has the features you want but also offers promotional interest-free financing for your holiday purchases. This is only a good option if you're sure you can pay off the balance before the intro APR period ends.\nThe Chase Freedom Unlimited® is a good option in this category. It offers a 0% intro APR on purchases for 15 months, after which your rate will be 14.99% to 23.74% variable depending on your creditworthiness. You can also earn an introductory bonus of $200 after spending $500 in your first 3 months with the card—a great way to capitalize on your holiday spending. Visit Experian CreditMatch™ for the rewards credit card offers based on your credit profile.\nThe Bottom Line\n---------------\nTo ensure your holidays are the happiest they can be, map out your spending now, just like Santa plots his route every year. From making a shopping list to evaluating your cash situation to looking into 0% intro APR credit card offers, fill your bag with the right financial tools and enter the new year with the gift of financial stability. END
 TITLE: Best Ways to Prepare Your Finances for Holiday Spending CONTENT: The Chase Freedom Unlimited® is a good option in this category. It offers a 0% intro APR on purchases for 15 months, after which your rate will be 14.99% to 23.74% variable depending on your creditworthiness. You can also earn an introductory bonus of $200 after spending $500 in your first 3 months with the card—a great way to capitalize on your holiday spending. Visit Experian CreditMatch™ for the rewards credit card offers based on your credit profile. END
 TITLE: HELOC vs. Personal Loan: Which Is Better? CONTENT: What Is a HELOC?\n----------------\nA HELOC is a revolving line of credit and second mortgage. You'll use your home as collateral to get a HELOC, and the value of your home helps determine the maximum amount you can borrow against it.\nGenerally, the combined balance of your HELOC and other mortgage(s) can be 60% to 85% of your home's appraised value. For example, if your home is appraised for $400,000 and you owe $200,000 on a first mortgage, you might get a HELOC for $40,000 to $140,000. The exact amount can depend on the lender and your creditworthiness.\nBorrowing against your HELOC is an _option_, not a requirement—although many lenders require an initial minimum draw that must be borrowed when the account is opened. You only pay interest on your draws, not the entire credit line. So, if you're approved for a $140,000 HELOC, for instance, you can choose to borrow just $25,000 of it without penalty.\nMany HELOCs have an initial 10-year draw period when you can borrow against your credit line and make interest-only payments. Then, depending on the loan, you may need to make a balloon payment when the draw period ends. Or, you could have a fixed term, such as 20 years, to pay off the balance. END
 TITLE: HELOC vs. Personal Loan: Which Is Better? CONTENT: What Is a Personal Loan?\n------------------------\nPersonal loans are often unsecured installment loans with fixed interest rates and repayment terms. Loan amounts generally range from $1,000 to $50,000. However, some lenders, such as SoFi, offer personal loans for up to $100,000.\nBecause they're unsecured loans, your eligibility, loan amount and interest rate will largely depend on your creditworthiness. But even for the most creditworthy applicants, personal loans tend to have higher interest rates than HELOCs.\nYou can use a personal loan to pay for almost anything. Common uses include paying for emergency expenses, medical bills, large purchases and consolidating higher-rate debts.\nYou can also get a personal loan for home improvements, and it may be the best option if you don't have enough home equity for a HELOC or don't want to use the equity in your home. Unlike with a HELOC, however, the interest you pay on a personal loan will never be tax-deductible. END
 TITLE: HELOC vs. Personal Loan: Which Is Better? CONTENT: HELOC vs. Personal Loan—What's Best?\n------------------------------------\nA HELOC could be a better option if you need to borrow a substantial amount of money or have an ongoing project that will require several draws. The low interest rate can also make HELOCs an inexpensive option. However, there's risk in using your home as collateral, and there's the possibility that your rate will rise.\nA personal loan could be best for a one-time expense, particularly if you qualify for a low-rate loan and won't benefit from tax deductions from a home improvement loan. It's also easier to get a personal loan, and it may be cheaper in the short run as you don't have to pay closing costs and there may be fewer fees. END
 TITLE: HELOC vs. Personal Loan: Which Is Better? CONTENT: Alternatives to HELOCs and Personal Loans\n-----------------------------------------\nYou can also look into different types of financing. These may be better fits depending on your creditworthiness and how you plan on using the funds.\n*   **Credit cards**: While credit cards have high interest rates, some cards have introductory 0% interest rate offers for new cardholders. The credit limit might not be high enough for large expenses, but you won't accrue interest during the promotional period.\n*   **Personal line of credit**: A personal line of credit is similar to an unsecured HELOC. For ongoing projects, you'll be able to take draws and only pay interest when you borrow money. Some lenders, such as Upgrade, offer personal lines of credit with linked cards you can use for purchases.\n*   **Cash-out refinancing**: With a cash-out refi, you'll refinance your mortgage with a larger loan and get the difference in cash. It can have the added benefit of lowering your mortgage's interest rate in the process. Keep in mind, though, the larger loan amount means your monthly payment will likely increase.\nCheck Your Credit Score First\n-----------------------------\nWhether you're looking for a HELOC, personal loan or other form of financing, your credit score can play an important role in determining your eligibility and interest rate. Check your credit score for free with Experian, and get insights into which factors are most impacting your score. Improving your score before applying may help you get a loan with more favorable terms. END
 TITLE: How to Get Approved for an Apartment CONTENT: Look for Apartments That Fit in Your Budget\n-------------------------------------------\nApartment hunting begins with understanding how much you can afford. The general rule of thumb is to spend no more than 30% of your gross (pretax) monthly income on rent. If, for example, you earn $6,000 per month before taxes, you should aim to keep your rent at or below $1,800.\nYour landlord may use a similar calculation to determine what's called your rent-to-income ratio. The industry-standard calculation works like this: Divide your gross annual income by 12, then multiply that number by 0.3. The total represents your maximum monthly rent. By these standards, someone who earns $60,000 per year may not get approved on their own for a monthly rent payment that exceeds $1,500. Of course, your debts come into play too. If you've got large monthly payments in the way of student loans, credit cards or auto loans, you may have less wiggle room in your budget for rent. (More on this shortly.)\nOnce you've landed on a number that feels right, you can start searching for rental properties that fit in your budget. Many apartment-hunting sites allow you to filter by rent amount, which can help prevent you from applying for apartments you can't afford. END
 TITLE: How to Get Approved for an Apartment CONTENT: Check Your Credit Report and Score\n----------------------------------\nKnowing what's on your credit report ahead of time can help you prepare for the application process. It's ideal to do so three to six months in advance so that, if necessary, you have time to address your risk factors and potentially improve your score before apartment hunting. Paying down debts, for instance, can increase your credit score and improve your odds of getting approved for an apartment.\nWhen a landlord pulls your credit, they're looking for any information that may suggest you'd be a risky tenant. Negative credit information such as late payments, delinquent accounts, a lot of recent credit inquiries or a bankruptcy in your past can all work against you. You should also be prepared for a landlord to look over your tenant history report, which shows them information about your previous leases, including whether you missed payments or were evicted.\nIn terms of the minimum credit score required to rent an apartment, there's no hard-and-fast requirements as things can vary by landlord and locale. That said, the average credit score of renters in the U.S. in 2020 was 638, according to a recent RENTCafé analysis. Renters in major cities and in high-end units have higher credit scores on average. END
 TITLE: How to Get Approved for an Apartment CONTENT: Options for Renting an Apartment When You Have Bad or No Credit\n---------------------------------------------------------------\nPoor credit or a slim credit history can create roadblocks to getting approved for an apartment. Here are some potential workarounds that could help your application along, even if you have bad credit.\n*   **Consider a cosigner.** Look to a parent, friend or other family member with good credit who's comfortable coming on as a cosigner. Just keep in mind that if you fail to keep up with your rent payments, they'll also be held financially responsible. This is something that could create a strain on the relationship if you don't hold up your end of the bargain.\n*   **Offer to pay more upfront.** Paying a security deposit along with your first month's rent is standard when applying for a new rental home. If you have poor credit, offer to put down a larger deposit or an extra month or two of rent. It could be enough to ease the landlord's concerns, especially if it's presented alongside strong references and proof of steady employment.\n*   **Narrow your search to landlords who won't pull your credit.** While rare, not all landlords require a credit check. Zero in on individual landlords who may be more willing to bypass it when compared to property management companies. Still, there are no guarantees, and you'll likely need to pay more upfront to make it worth their while. Sites like Craigslist and Facebook Marketplace can be good places to begin your search.\n*   **Lower your expectations.** Instead of moving into a nice apartment close to work, you may have to settle for a more modest unit in another part of town. Opting for a more affordable place could cause a landlord to put less weight on your creditworthiness.\n*   **Consider moving into an apartment with an established lease.** Moving in with a roommate who already has a rental lease could be a great option for someone with less-than-perfect credit. Just be certain their lease allows for subletting. In some cases, you may still need to submit to a credit check, but the landlord may offer more leeway. Another option is to move in with a roommate who owns a home. In this case, you pay rent to them directly, which they put toward their monthly mortgage payment. END
 TITLE: How to Rent Your First Apartment CONTENT: Decide on Your Apartment Budget\n-------------------------------\nIf you've never rented an apartment before, your first task should be determining how much rent you can afford. Apps and websites that provide scales to adjust your price range can be helpful, but you'll need to dig deeper when you're getting started. It's vital you avoid leases that are above your budget, and deciphering what that amount is can take a bit of forethought.\nFirst, sit down with something to write with or a blank spreadsheet and figure out your income and expenses. Note your exact monthly income after taxes or, if your income is less predictable, what your average monthly income is over several months to get a clear picture of how much you have to work with.\nNext, list out all your monthly expenses. Have recent bank statements and credit card bills handy to help you go through your typical spending. Start with your regular monthly expenses, such as student loan payments, insurance premiums, car payments, subscriptions and credit card payments. Add in necessities like gas and groceries, and discretionary expenses such as restaurant and takeout meals, clothing, gifts and travel costs. Finally, include the amount you set aside for savings each month.\nYou'll also need to account for any apartment-specific spending that awaits you, such as utility bills and renter's insurance (the latter costs about $15 a month on average). You may also be furnishing your new place, so don't forget about furniture, kitchen essentials and other necessities. Even if most will be one-time purchases, you'll need to figure it into the big picture if you're paying your own way.\nDeduct all your monthly expenses from your income to find out how much is left over: This should be a reasonable representation of how much you can afford in rent. In general, your rent shouldn't exceed 30% of your gross (pretax) income; landlords will check this, too, by calculating your rent-to-income ratio.\nAnalyzing your budget shouldn't be a one-time endeavor. If you don't already have one, create an ongoing budget—which will eventually also include your rent and other apartment costs—to help you stay on track financially as you strike out on your own.\nYou might even be able to find some ways to reduce your budget. For example, maybe you can cancel your gym membership if your apartment complex has its own gym. Or, you might be able to cut back on gas costs by leasing within walking distance of your job. This brings us to the next component of renting your first apartment: location. END
 TITLE: How to Rent Your First Apartment CONTENT: Spend Time Researching Neighborhoods\n------------------------------------\nFinding a place where you both want to live and can afford to live is the key here. Popular sites for apartment hunting like Apartments.com and Rent.com provide helpful maps, but you should go a step farther with sites like AreaVibes.com, which offer a window into a community's atmosphere and can show you research on the local crime rates.\nIt's important to rent in an area where you feel safe, so peruse neighborhoods you're considering both during the day and at night. This also gives you the opportunity to gauge the local environment: You may be absolutely thrilled that the bar across the street has music thumping until the wee hours of the night; then again, you may not be so thrilled. Get a feel for the area to know.\nPay attention to current or upcoming construction, too, and determine whether the location works with your commute. Checking Google Maps, which factors in traffic and other obstacles, can help here, as can doing a mock commute from your potential abode to work. A gorgeous kitchen might not be worth it if you find out a nearby elementary school starts just before your job's start time. Find out about those things now, before you're late for work, stuck fuming behind a line of school buses. END
 TITLE: How to Rent Your First Apartment CONTENT: Pay Attention to Apartment Amenities\n------------------------------------\nYes, the pool and fitness center may look lovely in the photos, but make sure you want and need the amenities your first apartment is offering—particularly since those all factor into how costly the rent will be.\nCertain amenities can play significant roles in your first apartment. For example, you may want to search for a place with front desk security, off-street parking or an apartment above the ground floor. Consider which features you can live without, like in-unit laundry machines, a dedicated parking spot or a pet-friendly policy, even if they're amenities you'd prefer. Then think about the deal-breakers, such as the lack of an elevator to reach a sixth-floor apartment. END
 TITLE: How to Rent Your First Apartment CONTENT: Check Your Credit Before Applying for an Apartment\n--------------------------------------------------\nPotential landlords will likely check your credit when deciding whether to approve you for an apartment. A history of responsible debt payment will help convince the landlord that you'll be a low-risk tenant; credit reports with many missing payments and other negative marks can do just the opposite. Start by checking your credit three to six months ahead of time if possible, which you can do for free through Experian.\nIf your credit score needs work, bring all debt payments current (and make all payments on time going forward) and pay down your credit card balances. Your potential landlord may require a steeper security deposit or cosigner if you have a subpar score—or may reject your application outright—so taking steps to improve your score is a smart move. While some landlords may rent to you with a poor credit score or no credit at all, you'll increase your chances of approval, and of lower deposit requirements, if you build your credit first. END
 TITLE: How to Rent Your First Apartment CONTENT: Gather the Necessary Application Materials\n------------------------------------------\nOnce you've narrowed your top choices down to the best combo of amenities, location and price, it's time to actually apply for your first apartment. You'll need a few things to get started:\n*   **Money**: Apartments might have application fees you have to pay upfront, so have your checkbook handy. Some may require first and last month's rent to move in or a sizable security deposit as well. Having money in the bank shows you're ready to make that financial commitment.\n*   **Pay stubs:**: Landlords may require you to show them proof that you have a steady income. Bank statements pointing out your work deposits may also be an option.\n*   **Identification**: Be prepared to show your driver's license or passport to prove you are the renter you claim to be.\n*   **References**: Since it's your first apartment, you may think you don't have these, but you can ask a coworker or even past dormitory supervisors or resident advisors to confirm in writing that you won't be a nightmare if they rent to you. Plus, some glowing recommendations can be extra helpful if you try to rent with a bad credit score. END
 TITLE: When Should I Lock In My Mortgage Rate? CONTENT: What Does It Mean to Lock In a Mortgage Rate?\n---------------------------------------------\nMortgage interest rates are dynamic and fluctuate daily or even hourly based on market conditions. If you see a competitive mortgage rate when you start your mortgage application, it may no longer be there weeks or months later when you finally close.\nIf you don't want to miss out on the current low rate, your lender may allow you to lock in the rate, which insulates you from future rate changes. Locked rates are usually available for a window of 30, 45 or 60 days. During this time, your rate won't change unless something changes on your mortgage application, such as the amount you're borrowing, your credit score or the home's appraised value.\nThis process comes with potential pitfalls that are important to keep in mind, though. Some lenders charge fees to lock in a rate, and others charge fees to extend them if you don't close in time. Additionally, it's possible that rates will drop after you lock in yours, meaning you'll lose out on lower rates (or risk paying a fee to unlock and nab the lower rate). END
 TITLE: When Should I Lock In My Mortgage Rate? CONTENT: When Is the Best Time to Lock In a Mortgage Rate?\n-------------------------------------------------\nWhile mortgage rates change constantly and are unpredictable, certain circumstances could make locking a good choice:\n*   **When rates are on the rise:** While mortgage rates fluctuate hourly or daily, they tend to move in an upward or downward trend over weeks or months. Start by researching recent mortgage rates. If they've been increasing, it could be smart to lock in now in case they rise further. Declining rates, on the other hand, could mean that locking in now causes you to miss out on an even lower rate later. Also, research to see if any events or market trends could be impacting rates now or have the potential to in the future; for example, rates were low during the height of the pandemic but are on the rise again at the time of writing.\n*   **When the Fed is meeting:** The Federal Reserve periodically meets and sometimes adjusts the federal funds rate, which is the rate at which financial institutions borrow money and therefore influences mortgage interest rates. Market interest rates have a tendency to increase after the Fed meets if they discuss rate increases, so it could help to research when they plan to meet and consider locking in a rate if your closing date occurs after a Fed meeting.\n*   **When your budget is tight:** By locking in a rate, you'll get a clearer sense of your monthly mortgage payment, which can give you a greater sense of financial certainty. If you don't lock in and rates skyrocket between your mortgage application and loan closing, your payments could be higher than expected and tougher on your budget.\n*   **When closing is set:** If your closing date seems set in stone and rates are competitive, locking in could be the right call. If you're not sure when you'll close, or it's possible there will be delays, locking may not be worth it since you'll likely have to pay a fee to extend it (or let it expire and pay current rates). END
 TITLE: When Should I Lock In My Mortgage Rate? CONTENT: Can I Unlock a Mortgage Rate if Interest Rates Drop?\n----------------------------------------------------\nA mortgage rate lock could either help or hurt you since your rate stays frozen in place whether market rates rise or fall. A frozen rate protects you if rates climb, but it also means missing out on lower rates if they go down.\nSome lenders offer a float-down option, which allows you to switch to the new, lower interest rate even if you've already locked in. But read the fine print first: You may pay extra for this option, and you may have to pay another fee if you opt to float down. It's important to do the math and ensure the potential rate savings is worth the cost of fees to lock and then float. END
 TITLE: When Should I Lock In My Mortgage Rate? CONTENT: What Happens if My Rate Lock Expires?\n-------------------------------------\nWhen you lock in your mortgage rate, it's not indefinite—it can be anywhere from 15 to 60 days, sometimes longer. You should aim for a long enough period to cover the loan closing. If you think your lock-in period won't be long enough, ask your lender if you can switch to a longer one or extend your rate lock—just be aware that some lenders charge a fee for this.\nIf your rate lock expires and you don't extend it, you'll likely have to pay the mortgage rate that's current as of closing, which could be higher or lower than the locked rate. Keep in mind that if you do get stuck with a high rate and rates drop significantly in the future, there's always the possibility of refinancing. END
 TITLE: When Should I Lock In My Mortgage Rate? CONTENT: Get Your Credit Mortgage-Ready\n------------------------------\nWhile market conditions play a huge role in mortgage interest rates, so does your credit score. The better your credit, the better chance you have of qualifying for a mortgage and landing lower interest rates. So before applying for a loan, take some time to get your credit mortgage-ready. You can monitor your credit for free through Experian to watch your progress and find ways to further improve your score. END
 TITLE: Do Mortgage Companies Run Background Checks? CONTENT: What Lenders Review During a Mortgage Background Check\n------------------------------------------------------\nWhen processing your mortgage application, the lender will be on the lookout for any red flags that could suggest you're a risky borrower. Some important details include:\n*   **Your employment status**: Your mortgage lender will likely want confirmation that you've been steadily employed for at least two years. It isn't enough to simply provide your recent paystubs, though that's often required too. A mortgage lender may contact your employer directly to verify your work status. Things can be a bit more involved for self-employed homebuyers, who still need to prove a two-year history of uninterrupted income. Every underwriter is different, but you may be asked for additional documentation such as profit and loss statements or 1099 forms.\n*   **Your financial information**: Mortgage companies look at all sources of income. This can include money coming in from side gigs and alimony, as well as investment income in the form of dividends and interest. Passive income, like money generated from a rental property, will be considered as well. Be prepared to provide documentation to verify all income sources. Keep in mind that to qualify for a conventional mortgage, your new monthly payment will likely have to be at or below 28% of your gross monthly income.\n*   **Your criminal record**: Your mortgage lender may or may not choose to conduct a criminal background check. If they do, there unfortunately aren't any legal protections in place to prevent them from charging you a higher APR or denying your loan application due to past criminal activity. That said, many lenders are most concerned about an applicant's employment status, financial health and ability to repay their loan. If you meet all their lending requirements, having a criminal record may not be an issue. If you've recently been incarcerated, however, you'll have a gap in your employment history and income that could work against you. END
 TITLE: Do Mortgage Companies Run Background Checks? CONTENT: Factors That Lenders Don't Check\n--------------------------------\nThere are certain off-limits criteria that mortgage lenders cannot consider when making a lending decision. Per the Equal Credit Opportunity Act (ECOA), it is illegal for a mortgage lender to discriminate based on your:\n*   Race\n*   Color\n*   Religion\n*   National origin\n*   Sex\n*   Marital status\n*   Age\nBorrowers also can't be discriminated against for receiving income from public assistance programs. If your application is denied, mortgage lenders are legally required to provide their reason for doing so. Violations of the ECOA can be reported to the Consumer Financial Protection Bureau. END
 TITLE: Do Mortgage Companies Run Background Checks? CONTENT: How to Prepare for a Mortgage\n-----------------------------\nIf you're hoping to secure a mortgage in the near future, there are certain steps you can take to increase your odds of getting approved. The following tips can help improve your credit score and put you in a stronger borrowing position:\n*   Pay down your debt.\n*   Bring any delinquent accounts into good standing.\n*   Make your payments on time every month.\n*   Avoid making major purchases or applying for new credit before completing the mortgage application process.\n*   Check your credit report and dispute any fraudulent activity.\nSeeking a less expensive property or saving up a larger down payment can also make you a more attractive loan applicant and save you money on your loan. Similarly, it's usually wise to hold off on making any risky career moves or transitioning to self-employment if you plan on applying for a mortgage in the next two years. END
 TITLE: How to Get a Property Survey CONTENT: What Is a Property Survey?\n--------------------------\nThere are several types of property surveys, but the types individuals are most likely to need are:\n*   **A boundary survey:** This determines the perimeter of a property to establish exactly how much land is included within it and to ensure the title is accurate. It may also identify whether any neighboring properties have encroached upon the property as well as any _easements_, or areas where access to the property is shared by others. For example, if you're buying a house near a beach, there may be an easement allowing the public to cross part of your property to reach the beach.\n*   **An ALTA\/ACSM survey:** Also called a mortgage survey or Extended Title Insurance Coverage Survey, this may be required by your mortgage lender or title insurance company. It determines property lines, identifies any utilities on the property and notes improvements (such as outbuildings, garages or fences). ALTA\/ACSM surveys comply with requirements of the American Land Title Association and the American Congress on Surveying and Mapping.\n*   **An elevation or floodplain survey:** This shows the various elevations of the land to reveal how great the risk of flooding is.\n*   **A topographic survey:** This type of survey identifies not only boundaries and man-made features of the land, such as buildings, but also natural features such as elevation, streams, lakes or hills.\nFor an additional cost, you can include boundary staking, which has surveyors put markers—typically concrete pillars or rebar—at the corners of the property and along property lines.\nThe cost of a property survey depends on:\n*   The type of property survey.\n*   The size, shape and terrain of the property. For instance, surveying acres of undeveloped mountain land with indistinct boundaries costs more than surveying a suburban home with a small fenced lot.\n*   The amount of research that's required to find previous property surveys, titles and other records regarding the property.\n*   Travel time, due to the fact that surveyors charge more for driving long distances.\nThe average cost of a property survey in the U.S. is $504, according to homeowner services company HomeAdvisor, with the cost to survey a one-fifth-acre lot (the average U.S. home property size) ranging from $400 to $700.\nCosts also vary by location. Angi, another homeowner services company, estimates average costs for a property survey as follows:\n*   **New York**: $380 to $900\n*   **South Carolina**: $250 to $600\n*   **Texas**: $200 to $550\n*   **Oregon**: $375 to $1,500\n*   **Illinois**: $350 to $700 END
 TITLE: How to Get a Property Survey CONTENT: You may not need a new property survey if the property has been surveyed in the past. Laws vary from state to state, but typically a survey done within the past 10 years will still be valid. Check with your local tax assessor's office or courthouse to see if any prior property surveys are on file. If you're buying a new property, your lender or title company may be able to help you find previous surveys.\nWhen you buy or sell a home, lenders or title companies sometimes arrange for a property survey to be conducted and include the fee in closing costs, so all you need to do is pay. Depending on state laws, the homebuyer or seller might be responsible for paying, or the fee may be negotiable.\nTo arrange a property survey on your own, you'll want to start by researching land surveyors. Each state has a professional society for land surveyors, and you can visit the National Society of Professional Surveyors website to find your local society and find a surveyor that way. You can also ask local real estate agents, your title company or your lender for recommendations. No matter how you find a surveyor, make sure they're licensed, insured and able to perform the job on your property.\nWhen getting estimates from surveyors, provide as much information as possible about the property and specify the kind of survey you need. Once you've selected your surveyor and schedule the survey, it typically takes a few weeks to complete the job. If you need one completed for a home purchase, schedule your survey as soon as possible. END
 TITLE: How to Get a Property Survey CONTENT: Why a Property Survey Is Important\n----------------------------------\nA property survey assures the lender and title company that the property you're buying is true to its description. For homeowners, doing a property survey before starting construction or improvements ensures you're building on your own land to hopefully prevent any future disputes with neighbors. Cities may also require property surveys before construction can be permitted. Check with your city to see if a survey is needed and, if so, what type.\nConducting a property survey is wise even if the boundaries of your property seem clear, such as a house with a fenced yard. If the fence you're replacing is really on your neighbor's property, it's better to make that discovery before starting the work.\nProperty surveys can also resolve disputes. Your neighbor may be upset that you're walking through his yard to get to the creek behind your homes. A property survey can prove you have the right to do so. END
 TITLE: How to Get a Property Survey CONTENT: Property Surveys Are a Key Part of Home Purchasing\n--------------------------------------------------\nConducting a property survey is one of many steps in buying a home. Before shopping for properties, it's important to get your credit ready for a mortgage. Get a free credit report from each of the three major consumer credit bureaus—Experian, TransUnion and Equifax—at AnnualCreditReport.com and review them for the factors that may be affecting your credit. You can also get your Experian credit report and view your credit score for free directly through Experian.\nA FICO® Score☉ of 670 or better is considered good and can help you qualify for lower mortgage interest rates and better loan terms. But why stop there? The higher your credit score, the more you could save on mortgage interest. Ways you can help improve your credit score include paying down debt, paying bills on time and avoiding new applications for credit. END
 TITLE: How to Compete With Cash Offers When Buying a House CONTENT: Ways to Even the Field With a Cash Buyer\n----------------------------------------\nIn light of the disadvantages you'll face against a cash buyer, your strategy for competing should focus on assuring the seller of your financial ability to complete the sale, and organizing the steps in the closing process so you can be efficient and flexible in meeting the seller's needs. Tactics that can help in this effort include:\n*   **Get a mortgage preapproval letter.** This is your single best way to better compete with cash buyers. Preapproval involves going through nearly all the financial review steps the mortgage application process entails, and gets you a letter from the lender indicating how large a loan it is willing to give you, and at what interest rate. Preapproval indicates to a seller that you have the financial backing necessary to complete the sale. It also can speed up the formal mortgage approval process, shaving 30 days or more off the turnaround time.\n*   **Be prepared to bid more than the asking price.** While real estate investors may be willing to exceed a house's listed price, they are often seeking bargains, and may be guarded in their willingness to bid too much over the listed price. Sweetening your offer by bidding over the asking price may be prudent, but take care against exceeding the property's likely appraised value. (Your real estate agent should be able to guide you in this.)\n*   **Work with experienced professionals.** A real estate agent or broker who's knowledgeable about the market can help you zero in on an offer the seller is likely to accept, but that won't exceed the home's appraised value. A seasoned real estate lawyer can help streamline the sales process and protect your interests during negotiations.\n*   **Be prepared to close as quickly as possible.** Work with your real estate agent and attorney to have as much closing paperwork prepared ahead of time as possible; have a building inspector on call to do your due-diligence inspection as soon as you get tentative acceptance on an offer; find an insurance agent if you don't have one and have them set to write up a fire and casualty property on the new house as soon as your offer goes through. (Your lender will require the insurance, and the policy shouldn't cost you anything until your closing date.)\n*   **Also be willing to delay the closing date or accommodate a seller's special circumstances.** This may seem paradoxical, but while many sellers are eager to close a sale quickly, some may appreciate your willingness to give them extra time or allow them some other considerations before closing. For example, they might need a few weeks to await completion of construction or renovations on their next home or ask permission to store a boat or RV temporarily on the property. If your circumstances allow it, flexibility on such matters could make you more attractive than a cash buyer to such a seller. Whatever terms you agree to, get them in writing with the help of an experienced real estate professional or attorney, so you have clear remedies in case the seller doesn't honor their side of the bargain.\n*   **Appeal to the seller's sense of continuity.** Homeowners typically invest a lot of themselves in their houses. Many are happy to see buyers who share their love for a property and who \"get\" what makes it a home. If you are sincerely passionate about a house, a letter expressing your vision for how you and your family would love it just might give you the edge over investment buyers. Keep it fairly brief and avoid flattery (which can sound insincere even if you mean it). This is no guarantee, but it can't hurt. END
 TITLE: How to Compete With Cash Offers When Buying a House CONTENT: Make Sure Your Credit Is Mortgage-ready\n---------------------------------------\nIf you're just beginning to seek financing on a new home, or if you've begun looking into mortgage preapproval and find the authorized loan amount less than you'd hoped for, or the interest rate steeper than you'd expected, it might be wise to step back and make sure your credit is mortgage-ready.\nIf possible, consider waiting six months to a year before applying for a mortgage and take steps as needed to improve your credit scores, such as:\n*   Pay down credit card balances, especially those with balances that exceed about 30% of the card's borrowing limit.\n*   Review your credit reports and dispute any inaccuracies that might be bringing your credit scores down.\n*   Refrain from applying for new loans or credit cards for at least six months before submitting a mortgage application.\n*   Track your progress by monitoring your credit scores. You could see score increases in as little as a few months but focusing on these good habits for a year or more could bring even greater improvement.\nContending with cash buyers in competitive real estate markets adds another challenge to the potentially stressful process of financing and buying a new home. If you get your finances together and are nimble and flexible in your ability to meet sellers' closing requirements, you and your team of professionals will have more than a fighting chance against real-estate investors. END
 TITLE: How Does Student Loan Debt Affect Buying a Home? CONTENT: How Student Loans Affect Getting a Mortgage\n-------------------------------------------\nHaving a student loan, in itself, isn't a deal breaker when it comes to getting a mortgage. What lenders care about is how debt you currently have (including your student loan debt) might affect your ability to repay the mortgage.\nWhen you apply for a mortgage loan, your debt-to-income ratio (DTI) is one of the factors lenders consider. DTI compares the total amount of your recurring monthly debt with your total monthly income. To calculate your DTI, add up all of your recurring monthly debt (such as minimum credit card payments, car loan payments and, of course, student loan payments) and divide it by your gross monthly income (the amount you earn before taxes and other withholdings).\nSuppose new grad Maria has a monthly income of $3,500 and a total recurring monthly debt of $1,200. Her DTI is 34% ($1,200 divided by $3,500). In general, lenders want to see a DTI of 43% or less before approving you for a loan, and many lenders prefer a DTI below 36%.\nWhat happens if we add a monthly student loan payment of $393 to Maria's debt load? (This is the average student loan payment, according to the Federal Reserve.) Now Maria's recurring monthly debt is $1,593, increasing her DTI to 45%—too high to get a mortgage. More than half (52%) of non-homeowners in the NAR survey say their DTI is keeping them from qualifying for a mortgage. END
 TITLE: How Does Student Loan Debt Affect Buying a Home? CONTENT: Student Loan Impact on Credit Scores\n------------------------------------\nYour credit score is a number that lenders use to assess your financial history and determine how creditworthy you are. It's based on several factors, including how much debt you have, what kind of debt you have and whether you pay your debts on time. (If you're not sure what your credit score is, get your free score from Experian to find out.) Most people have many credit scores, with variations depending on the model used. Lenders choose which to use when making their decisions, and typically use a FICO® Score☉ when evaluating mortgage applications.\nLike all types of debt, student loan debt can affect your credit scores either positively or negatively. Missing a student loan payment or making a late payment will have a negative impact on your scores. Late payments remain on your credit report for seven years.\nMaking student loan payments on time every month, on the other hand, can help improve your credit scores. Setting up auto payments for your student loans can help to ensure you never miss a payment, giving you peace of mind while also potentially boosting your credit.\nKeeping your credit utilization ratio low is another way to improve your credit scores. Your credit utilization ratio reflects how much of your available credit you're actually using. If you have a total credit limit of $9,000 on three credit cards and carry a balance of $750 on each (or $2,250 total), your credit utilization rate is 25%. A low credit utilization rate shows you're doing a good job of managing your debt. In general, it's recommended to keep your credit utilization rate under 30%—the lower, the better. END
 TITLE: How Does Student Loan Debt Affect Buying a Home? CONTENT: Reducing Your Student Loan Debt\n-------------------------------\nIf you want to buy a home in the near future and your DTI is too high to qualify for a mortgage, there are several steps you can take to reduce your student loan debt.\n*   **Pay more toward your student loan every month**. Cut back on discretionary spending, such as eating out or buying new clothes, and put the extra money toward your student loan payments. Paying a bit more on your student loan each month will gradually improve your DTI.\n*   **Consider refinancing or consolidating your loans**. If you have federal student loans, the U.S. Department of Education offers a loan consolidation program that combines all of your federal student loans into one loan with one monthly payment. Although it won't lower your interest rate, federal student loan consolidation can make it easier to keep track of your debt and make your payments on time. It can also give you access to more flexible repayment plans. If you have private student loans, investigate loan consolidation and refinancing options offered by banks, credit unions and online lenders. Be aware that if your credit scores and DTI are less than stellar, it may be difficult to refinance student loans at a lower interest rate than you currently have. Learn more about refinancing and consolidating student loans.\n*   **Make more income**. See if you can get a raise at your current job, take on a part-time job or start a side hustle to earn extra money. In addition to improving your DTI, increasing your gross monthly income can help you save more money toward a down payment or pay more toward your student loan each month.\n*   **Look for a new job that offers assistance with student loan debt**. Student loan debt repayment assistance has become a popular employee benefit, and is now offered by hundreds of companies nationwide. If you're open to a job change, finding a company that will help with your student loans can make a big difference to your debt load. (Keep in mind that mortgage lenders generally want to see a job history of at least two years with the same employer, so don't use this tactic unless you're willing to wait two years to apply for a mortgage.)\nAll of these steps take time, but be patient. Eventually, small changes will have big results, leaving you better positioned to manage the responsibility of a mortgage. END
 TITLE: How Does Student Loan Debt Affect Buying a Home? CONTENT: Other Factors for Getting Approved for a Mortgage\n-------------------------------------------------\nYour DTI and credit scores aren't the only factors lenders consider when approving your mortgage application. To help compensate for less-than-ideal numbers, you can:\n*   **Make a higher down payment**. Although 20% is generally considered the ideal down payment amount, in 2018, the median down payment for all home buyers was 13%, and for new home buyers, it was 7%, NAR reports. Have your parents or other family members offered to give you money to use for your down payment? Take them up on it. Keep in mind that your lender may set limits on the percentage of the down payment that can be gifted; they will also require documentation, such as a gift letter, to prove that the money is a gift rather than a loan.\n*   **Use a first-time homebuyer program**. U.S. Federal Housing Administration (FHA) home loans, Veterans Administration loans, U.S. Department of Agriculture home loans and Fannie Mae HomeReady loans are among the mortgage loan programs designed specifically to help first-time buyers buy homes with low down payments and less-than-stellar credit scores. Learn more about mortgage programs for first-time home buyers.\nTo the mortgage lender, it all boils down to this: Do you have enough income to manage all of your monthly payments without getting in over your head? When you're eager to own your own home, it can be difficult to remember that mortgage lenders ultimately have your best interests in mind. By taking time to increase your income, lower your DTI and improve your credit scores, you'll learn the skills you need to responsibly manage a monthly mortgage payment. END
 TITLE: How Much Does It Cost to Refinance a Mortgage? CONTENT: What Is Mortgage Refinancing?\n-----------------------------\nRefinancing a mortgage involves replacing your existing loan with a new one, either through your current lender or a different one.\nThere are a few different reasons why you might consider refinancing a mortgage:\n*   **Lower interest rate**: If market rates have dropped or your credit and financial situations have improved since you first applied, you may be able to score a lower interest rate, which could save you on your monthly payment and cut the total amount of interest you'll pay.\n*   **Lower monthly payment**: Even without a lower interest rate, you could refinance your mortgage to a loan with a longer repayment period, reducing your monthly payment. Just keep in mind that this typically results in more interest paid over time.\n*   **Switch interest rate types**: Adjustable-rate mortgages are appealing because they start off with a lower interest rate than a fixed-rate mortgage, and you'll typically maintain that rate for the first three, five, seven or even 10 years. Once that fixed period ends, though, your rate can fluctuate with the market. If you want to switch from an adjustable rate to a fixed rate, a mortgage refinance is the only way to do it.\n*   **Tap your home equity**: If you need some extra cash to pay down high-interest debt, finance a home improvement project or buy an ex-partner out of ownership, a cash-out refinance allows you to borrow more than what you currently owe. The amount you can borrow will depend on how much equity you have, and the additional debt will be paid to you in cash. END
 TITLE: How Much Does It Cost to Refinance a Mortgage? CONTENT: Costs to Consider Before Refinancing a Mortgage\n-----------------------------------------------\nWhile there are some clear benefits to refinancing a mortgage loan, it's important to consider the costs associated with the process. According to the Federal Home Loan Mortgage Corporation (Freddie Mac), closing costs include:\n*   Government recording costs\n*   Appraisal fees\n*   Credit report fees\n*   Lender origination fees\n*   Title services\n*   Tax service fees\n*   Survey fees\n*   Attorney fees\n*   Underwriting fees\nIt's important to note that these fees can vary from lender to lender. For example, some digital mortgage companies don't charge lender fees at all. And some fees, such as origination, underwriting and title fees, can be negotiated. END
 TITLE: How Much Does It Cost to Refinance a Mortgage? CONTENT: How to Decide Whether Closing Costs Are Worth It\n------------------------------------------------\nWhatever the fees may be for your particular mortgage refinance, it's important to compare the costs with the benefits.\nAs one example, let's say you're refinancing a $300,000 mortgage with a 30-year term and a 4.25% interest rate. The new loan rate is 3.25%, and you're keeping the same repayment period that you have now.\nIn this instance, the refinance reduces your monthly principal-and-interest payment from $1,476 to $1,306, a monthly savings of $170. Now, if the closing costs on the refinance total $9,000, it will take you roughly 53 months, or almost four and a half years, to break even with the monthly savings.\nIf you're planning on staying in your home longer than that and don't anticipate refinancing again during that period, it's worth it. But if you think you'll sell the house before you reach that break-even point, the costs outweigh the savings.\nDoing a cost-benefit analysis on other mortgage refinance purposes can be more challenging because there isn't necessarily a clear way to compare what you'll get with what it'll cost you. But it's still a good idea to consider both the benefits and drawbacks.\nIt's also important to note that you can often roll the closing costs into your new loan. While this saves you money upfront, it can cost you more in the long run because you're now paying interest on closing costs in addition to the principal loan amount. END
 TITLE: How Much Does It Cost to Refinance a Mortgage? CONTENT: If you've decided you'd like to move forward with the process, here are some steps you can take to refinance your home mortgage:\n*   **Check your credit** to determine if you're in a better place than you were when you accepted the first mortgage.\n*   **Understand your goal for refinancing**, whether it's to get a lower interest rate or monthly payment, switch to a different type of interest rate or get some cash from your equity.\n*   **Shop around** and compare interest rates and closing costs.\n*   **Choose a lender** and lock in an interest rate, then provide all of the documentation and information the lender requires to close on time.\nIn most cases, you can refinance your mortgage loan soon after you closed your first one. However, there are some instances with a waiting period, so check with your lender before you apply to avoid unnecessary credit checks.\nDuring this process, it's crucial that you avoid applying for any other type of credit. If you open a new loan or credit card account just before you apply for a mortgage refinance, it could impact your ability to refinance.\nThat said, refinancing a mortgage loan typically won't impact your credit score too much, especially if you're not doing a cash-out refinance because you're not changing how much you owe. The hard inquiry generated when the new lender pulls your credit and the closure of the old account could affect your credit scores slightly, but the decrease is typically only temporary, all other things being equal. END
 TITLE: How Much Does It Cost to Refinance a Mortgage? CONTENT: Make Sure Your Credit Is Mortgage-Ready\n---------------------------------------\nLong before you apply for a mortgage refinance, check your credit score and review your credit report to get an idea of where you stand. Even if you can get a lower interest rate with your current credit and financial situation, you could save even more if you can improve your credit before you apply. END
 TITLE: What to Know Before Cosigning a Mortgage CONTENT: How Does Cosigning for a Mortgage Work?\n---------------------------------------\nWhen you cosign for a mortgage, you agree to take full financial responsibility for the mortgage payments if the primary borrower stops paying. You won't share ownership of the home, however, and your name won't be on the title.\nIn contrast, co-borrowers (also known as co-applicants or joint applicants) share both the financial liability and ownership of the home. A joint applicant arrangement is common among spouses, partners or friends who want to buy and live in a home together, although there can also be non-occupant borrowers on a mortgage.\nMortgage cosigning may be more common when someone wants to help a family member buy a home. For example, a parent may cosign a mortgage for a child who is having trouble qualifying on their own—perhaps because they're new in their career, self-employed or recently divorced.\nApplicants can often benefit from a mortgage cosigner when they don't have a steady income or enough income to qualify on their own. A cosigner with a steady paycheck and low debt-to-income ratio (DTI) may give the lender assurance that someone will be able to make the mortgage payments. The cosigner may also help with a down payment, although the lender may require the primary borrower to make the minimum down payment.\nThe cosigner's credit scores will also be considered. However, mortgage lenders generally look at both applicants' credit scores from all three credit bureaus (Experian, TransUnion and Equifax) and use the lower middle score of the two. As a result, a cosigner won't necessarily be a big help if the primary borrower doesn't have a high enough credit score. END
 TITLE: What to Know Before Cosigning a Mortgage CONTENT: Who Can Cosign a Mortgage?\n--------------------------\nThe requirement to cosign on a mortgage can vary depending on the lender and the type of mortgage.\nFor example, some lenders require the cosigner to be a close friend or relative of the primary borrower, such as a parent or sibling. Lenders may forbid cosigners who have a financial interest in the sale of the home, such as the home seller or a real estate agent.\nCosigners generally need to meet the minimum credit score requirements for the loan—620 for conventional loans and 500 to 580 for government-backed Federal Housing Administration (FHA) loans.\nThe cosigner will also need to share copies of identifying documents and financial records and agree to a credit check. Required documents may include a government-issued ID, Social Security card, tax returns and bank statements. END
 TITLE: What to Know Before Cosigning a Mortgage CONTENT: How Cosigning Can Affect Your Credit\n------------------------------------\nBecause you're taking on financial responsibility for the loan, cosigning a mortgage can impact your credit as if you were taking out a mortgage for yourself.\n*   The initial credit checks and hard inquiries may hurt your scores a little\n*   A new, large outstanding balance can also lead to an initial dip\n*   On-time mortgage payments can help your credit\n*   Late payments or a foreclosure can hurt your credit\n*   The mortgage can impact your credit for the lifetime of the loan and up to 10 years after it's paid off or refinanced\nYour credit scores aside, other creditors may include the mortgage payments in your DTI, even if you aren't making the payments yourself. A high DTI doesn't impact your credit scores, but it can make qualifying for a new loan or line of credit more difficult. END
 TITLE: What to Know Before Cosigning a Mortgage CONTENT: What Are the Pros and Cons of Cosigning a Mortgage?\n---------------------------------------------------\nCosigning a mortgage involves taking on a lot of risk with little financial upside. If you're considering cosigning, your main motivation should be helping someone buy a home. END
 TITLE: What to Know Before Cosigning a Mortgage CONTENT: Check Your Credit Before Offering\n---------------------------------\nWhile cosigners primarily benefit mortgage applicants when they have a steady income and low DTI, your credit scores will still be important. You can check your FICO® Score☉ 8 from Experian for free to get a sense of where you're at right now. If you have time to prepare, you may also want to focus on getting your finances ready. Paying off other outstanding debts, increasing your income and improving your credit scores may make you more valuable as a cosigner. END
 TITLE: How to Shop for a Mortgage CONTENT: Understand How Mortgages Work\n-----------------------------\nA mortgage allows you to borrow the funds needed to purchase a new home. Most mortgages require you to make a down payment, usually at a minimum of 3% to 5% of the sale price, depending on the type of mortgage loan. Many buyers aim for a 20% down payment, but the amount you put down will depend on your unique financial situation. The amount of your mortgage is determined by the difference between your down payment and the purchase price of the home. You will also be responsible for paying closing costs and fees that typically range between 2% and 5% of the purchase price.\nMortgage terms can vary, but are commonly either 10, 15, 20 or 30 years. During that time you will make monthly payments to the lender to cover the following:\n*   **Principal**: This is the loan amount not including interest or what's already been paid off.\n*   **Interest**: The finance charge on the loan, interest is based on the annual percentage rate (APR) charged by the lender.\n*   **Escrow**: The escrow account holds a pool of money that is used to cover homeowners insurance, property taxes and other costs when they are due. You may also need to pay for mortgage insurance if your lender requires it.\nDuring the repayment period, the deed to the home remains in the lender's possession. When you pay the mortgage in full, the lender will transfer the deed to you. If you fall behind on your payments and eventually default on the loan, the lender has a right to foreclose and take possession of the home.\nHere's a breakdown of the different types of mortgages and how they work.\n*   **Conventional loans**: These mortgages are offered by banks, credit unions and other mortgage lenders. Conventional loans are not backed or insured by government agencies. They may be sold to a different lender within a few months of closing.\n*   **Government-insured loans**: Backed by government agencies, these loans are originated by private lenders but offer solutions for would-be homebuyers who might not otherwise be able to be approved for a loan. They include FHA loans, VA loans and USDA loans.\n*   **FHA loans**: These loans are insured by the Federal Housing Administration (FHA) and allow a down payment as small as 3.5%. You may be able to qualify for an FHA loan if you have a low income or less-than-perfect credit. Qualification criteria for these loans are less stringent than what you'd find with conventional loans.\n*   **VA loans**: Loans through the U.S. Department of Veterans Affairs cater to members of the armed forces and their families. If you qualify, you could get approved for a mortgage without a down payment.\n*   **USDA loans**: This loan is designed for low-income borrowers who plan to purchase a home in a rural area. No down payment is required.\nNo matter what type of mortgage you get, the interest rate will be a major deciding factor. However, it's important to understand that mortgages will fall into one of two broad categories that determine whether or not the loan's interest rate can change:\n*   **Fixed-rate mortgage**: Your loan's interest rate will remain the same over the entire loan term. These mortgages provide more predictability for your monthly payments, but they might result in higher rates compared with the alternative.\n*   **Adjustable-rate mortgage (ARM)**: These mortgages come with an interest rate that can fluctuate. Generally, your interest rate will be fixed at the beginning of the loan term and then change annually with market rates. The frequency with which the loan rate can change is expressed with a fraction such as 5\/1 or 7\/1. With a 7\/1 ARM loan, you will have a fixed rate for the first seven years, after which the rate can change annually. Some buyers prefer these loans since they can provide a lower interest rate during the initial fixed period compared with fixed-rate loans—but they are riskier because you don't have a guaranteed rate locked in for the life of the loan. END
 TITLE: How to Shop for a Mortgage CONTENT: Check Your Credit Score and Report\n----------------------------------\nWhen you apply for a mortgage, lenders review your FICO® Scores☉ and the information in your credit reports, often from all three of the national credit bureaus: Experian, TransUnion and Equifax. For single borrowers, the lender typically orders scores from lowest to highest and uses the middle score to assess eligibility for a mortgage loan. To illustrate, if you have scores of 620, 650 and 690, the lender will typically use 650 to make a lending decision. When two people are getting a mortgage together, the lender looks at the lower middle score of the two.\nHere are the general credit score guidelines by loan type:\n*   **Conventional loans**: FICO® Score of 620 or higher\n*   **FHA loans**: FICO® Score of at least 580 (or 10% down payment for a FICO® Score as low as 500)\n*   **VA loans**: FICO® Score of 620 or higher\n*   **USDA loans**: FICO® Score of 640 or higher\nKnowing where your credit stands before you move forward can help you set realistic expectations. If you find your credit scores aren't as high enough to qualify you for a mortgage, you might take the time to improve your score to give yourself the best chance of getting approved.\nYou can get your credit ready for a mortgage by continuing to pay your bills on time, paying down your credit card balances and avoiding new credit applications. END
 TITLE: How to Shop for a Mortgage CONTENT: Get Preapproved for a Mortgage\n------------------------------\nOnce you feel your credit score is mortgage-ready, you can explore loan offers. You can do this by getting prequalified or preapproved. Although the terms are often used interchangeably, they have different meanings.\n*   **Prequalification** includes a quick review of your finances and credit history that helps estimate how much you could possibly qualify for. It only takes a few minutes to get prequalified, and you can call in or visit the lender's website to answer a few questions about your income, assets and debts.\n*   **Preapproval** is a more in-depth process that paints a more accurate picture of your eligibility for a mortgage. You have to formally apply for a mortgage loan and submit supporting documentation for the lender to review. Expect to provide personal details, consent to a credit check, and offer income documentation and a list of assets and debts. Some lenders also collect an application fee to get the ball rolling.\nIf everything checks out, you will get a preapproval letter that includes loan terms and your interest rate. Most preapproval letters are valid for up to 90 days and can be used to make an offer on a home. END
 TITLE: How to Shop for a Mortgage CONTENT: Shop Around for the Best Rates\n------------------------------\nIt's always ideal to shop around with mortgage lenders or brokers to get the best rates. This will require multiple lenders to access your credit report, which results in many credit pulls. However, most credit scoring models will group all the hard inquiries related to mortgages into one if you shop within a period of a couple of weeks.\nIf you're still not getting the rates you want, consider using a mortgage broker. They will shop your information around to a network of lenders who may be able to offer you more favorable loan terms. You may also secure a more competitive interest rate by providing a larger down payment. END
 TITLE: Buying a Home: What LGBTQ Couples Need to Consider CONTENT: How to Prepare for Homeownership\n--------------------------------\nA home may be the largest purchase you ever make, and it's made more complicated and costly with various fees, taxes and insurance requirements. Because homeownership carries significant responsibility, lenders have strict eligibility requirements for borrowers.\nTo improve their chances of qualifying for a mortgage, LGBTQ couples may want to take these steps to get ready for homeownership:\n*   **Save for a down payment.** One of the best things prospective homebuyers can do is to start saving money, Auten-Schneider says. Some mortgages allow for low down payments, though they typically require paying mortgage insurance in exchange.\n*   **Improve your credit.** In addition to helping you get approved for a mortgage, having a strong credit score can nab you a lower interest rate, which will save you money over the life of your loan. Check your credit and see if there's any room for credit improvement before applying for a mortgage. Look for debts you can reduce, and make sure you keep paying every bill on time in order to protect your scores.\n*   **Reduce your debts.** Lenders also consider your debt-to-income ratio, which compares your debt payments to your income. If you're already overextended, lenders may not approve you for additional debt. To improve your chances of getting a mortgage—and to better handle the responsibility of making payments—make progress on paying down other debts first.\n*   **Determine what you can realistically afford.** When you get preapproved for a mortgage, a lender will estimate how much they'll let you borrow based on your creditworthiness and other factors. This estimate helps you in competitive markets, Auten-Schneider says, since it shows the seller you're serious and qualified. But the ability to be preapproved for a certain amount doesn't necessarily mean you should look for a house that costs about the same. In reality, a mortgage of the amount you're preapproved for could stretch your finances, especially with the other costs of homeownership, such as ongoing maintenance, repairs, taxes and insurance. Take a close look at your monthly expenses and calculate how much you can really afford in monthly mortgage payments; make sure you don't bite off more than you can chew.\n*   **Get legal ownership in writing.** Homeownership can be straightforward if you're a married monogamous couple, but it's not always so simple. \"Depending on the dynamic of your relationship, and especially if you're in a polyamorous relationship, draw up the contracts to be clear on who owns and owes what,\" Auten-Schneider says. \"Your real estate agent should be able to refer you to a legal advisor.\" END
 TITLE: Buying a Home: What LGBTQ Couples Need to Consider CONTENT: Get Prepared With a Credit Check\n--------------------------------\nThe process of buying a home can be expensive and overwhelming, especially with the additional challenges LGBTQ couples may face. Before you apply for a mortgage, make sure you both check your credit, which you can do via AnnualCreditReport.com or for free directly through Experian. Go over your credit reports as well as your scores to determine if there's room for improvement and to get an idea of what a lender will see when you apply. END
 TITLE: What Does Deed in Lieu of Foreclosure Mean? CONTENT: What Happens When You're Facing Foreclosure\n-------------------------------------------\nDeed in lieu of foreclosure is one of several options if you are a homeowner facing foreclosure. The others are:\n*   **Short sale****.** This is when the homeowner accepts an offer from the lender for less than they owe on the house.\n*   **Mortgage modification.** Any change to the original loan in cases of financial hardship is called a modification.\n*   **Chapter 13 bankruptcy filing****.** This allows homeowners to repay the loan as approved when their petition is granted.\nSimply walking away from the home or allowing the foreclosure and eviction process to run its course can leave you with ruined credit, reduced resources, and a substantial amount of debt that can increase over time from the unpaid mortgage balance. In many states, borrowers can continue to be liable for the amount of the home loan on which they default, plus substantial interest.\nA deed in lieu offers you the chance to negotiate with your lender to reduce or eliminate any outstanding mortgage balance, and even offers the potential of getting you some cash to find a new place to live.\nAlthough it doesn't feel like it when you're in a desperate financial situation, a homeowner in possession of their property still has some leverage with the lender. In many states, the foreclosure process can be lengthy and expensive for the lender, who must hire attorneys, pay for legal advertisements, or go to court to prove that the homeowner is in default and claim the property. In addition, the lender also may need to go through a separate legal process to finally evict the homeowner, even after a successful foreclosure.\nFinally, lenders worry that a distressed, angry homeowner might damage the property or strip it of valuable items, such as appliances, cabinets, fixtures and more. Offering a deed in lieu of foreclosure means the lender can get the property sooner, in good shape and at less cost. That allows the lender to resell the home as soon as possible at the best current price.\nIt's risky to pursue a deed in lieu by yourself, since it involves what can be complicated legal contracts. If you're facing foreclosure, you should talk to an approved Housing and Urban Development (HUD) housing counselor and a bankruptcy or foreclosure defense attorney to determine the best options. Even if you do pursue negotiating a deed in lieu on your own, at least have the final agreement reviewed by an attorney to protect yourself. END
 TITLE: What Does Deed in Lieu of Foreclosure Mean? CONTENT: Advantages of a Deed in Lieu of Foreclosure\n-------------------------------------------\nA deed in lieu arrangement offers several advantages to the homeowner:\n*   **It allows you to avoid or minimize any deficiency on your mortgage.** That's the loss the lender takes on the difference between the current, fair market value for your home and the balance of your home loan. In many states, the law allows lenders to pursue borrowers for any deficiency. In some cases, that balance continues to charge interest at the penalty rate stated in the original mortgage, which is often several percentage points higher than the stated mortgage rate. Under a deed in lieu arrangement, homeowners have the ability to negotiate the deficiency and even eliminate it. If you get this kind of deficiency waiver, make sure it's in writing and notarized, and keep copies with your long-term financial records to protect yourself.\n*   **It may give you help moving.** In a \"cash for keys\" arrangement, the lender offers money to help you with moving and finding a new place to live to ensure that the property is turned over quickly and in good condition.\n*   **It could reduce the hit to your credit.** Plummeting credit scores come with a formal foreclosure, depending on your circumstances. Although settling the mortgage for less than the full balance owed will still hurt your credit, the damage may not be quite as bad. And while a deed in lieu arrangement will hamper your ability to get another home loan for up to four years, that's better than the seven-year wait that applies to most foreclosures. END
 TITLE: What Does Deed in Lieu of Foreclosure Mean? CONTENT: Downsides of Deeds in Lieu of Foreclosure\n-----------------------------------------\nUnderstand that your lender is under no obligation to offer a deed in lieu of foreclosure and that some mortgages under certain servicing agreements may not be eligible for such an arrangement. If there's a significant shortfall between the amount owed on the loan and the value of the property, the lender may require you to pay additional money to reduce its loss.\nObviously, the better shape the home is in, the more likely it is that you'll be able to arrange a deed in lieu. And if there is a second or even a third mortgage on the home, including a home equity loan or home equity line of credit, the other, subordinate lenders will need to release their liens and sign off on the arrangement. If the primary mortgage lender is eager to take possession of the property, the lender may offer to pay the other lien holders to arrange a deal. But those additional loans against the home will complicate getting a deed in lieu.\nOne downside to a deed in lieu is that you may face taxes on the amount of your forgiven debt, which the IRS considers income. The taxable amount is the total debt at the time it was forgiven minus the fair market value of the home at that time. For example, if the outstanding mortgage debt at the time of the deed in lieu arrangement was $180,000 and the market value of the property was $150,000, the homeowner could owe tax on $30,000. END
 TITLE: What Does Deed in Lieu of Foreclosure Mean? CONTENT: Where to Go for Help\n--------------------\nTo find out whether you might qualify for a deed in lieu of foreclosure, contact your lender or mortgage loan servicer, which is the company that collects your mortgage payments. Also contact a HUD-certified housing counselor and the Consumer Finance Protection Bureau for help in exploring your options at (855) 411-CFPB (2372). A counselor may be able to help you arrange a deal at no cost with the servicer.\nYou also can contact a bankruptcy attorney, legal clinic or foreclosure defense attorney, but you will have to pay for their help. There are many foreclosure scams that dupe homeowners into paying money upfront and getting no help at all, so avoid dealing with anyone promising to wipe out your foreclosure in exchange for a fee.\nKeep detailed records of all your communications with lenders, servicers and counselors, including full names, phone numbers and email addresses of everyone with whom you talk. Once you've arranged a deed in lieu, keep all your records on file in case any questions come up. END
 TITLE: What Is Collateral? CONTENT: What Is Collateral, and How Does It Work?\n-----------------------------------------\nNo one wants to lose their house or car, which means collateral gives the lender more assurance the borrower will repay the loan on time. Lenders consider loans backed by collateral, called secured loans, a safer bet than those that aren't, called unsecured loans. For that reason, secured loans may be easier to get and generally come with lower interest rates.\nIf you fall behind and can't repay a secured loan, the lender can take the collateral you put up for it. For instance, missed auto loan payments could lead to repossession of your car, which a lender may be able to do without advance warning or court proceedings. Missed mortgage payments could lead to foreclosure, when the lender takes possession of your house.\nYour loan contract will make clear how many missed payments lead to loan default, and at what point the lender has the right to take ownership of the collateral. END
 TITLE: What Is Collateral? CONTENT: Types of Collateral\n-------------------\nThe type of secured loan you're applying for will dictate the collateral you can offer. Below are common consumer loans and collateral that can back them:\n*   **Mortgage**: On a mortgage, the home you're buying generally serves as the collateral. That's also the case if you take out a home equity loan or home equity line of credit, both known as second mortgages.\n*   **Auto loan**: The car you buy is the collateral on an auto loan.\n*   **Secured credit cards**: Getting a secured credit card is a smart credit-building strategy for those with low credit scores or short credit histories. When you apply, you'll pay a deposit that's generally the same as the line of credit you'll receive. That deposit functions as collateral, and you'll lose it if you don't pay off card purchases you make with the card on time.\n*   **Secured loans**: Personal loans can be used for all kinds of purposes, like home renovations or consolidating debt. Most are unsecured, meaning they're not backed by collateral. But some lenders offer secured loans, and you can typically use your car, savings account or home as collateral. But remember, you could lose it if you're unable to repay the loan. END
 TITLE: What Is Collateral? CONTENT: Can I Use Collateral to Build Credit?\n-------------------------------------\nCollateral can indirectly help you build credit if it backs a secured loan that you repay on time. Payment history is the largest factor in your credit score, which means paying all your bills by their due dates can strengthen your score.\nTimely payments on both secured credit cards and secured loans can help you build credit. Taking out a loan solely to improve your credit score, however, may not be wise if you're not absolutely sure you have the flexibility to afford a new monthly payment. And backing a secured loan with an asset like your car as collateral is risky.\nInstead, consider a secured credit card with a manageable credit limit, or a credit-builder loan, which is a secured loan generally offered by credit unions for the purpose of boosting credit. On a credit-builder loan, you don't need to put up collateral upfront. Instead, the amount you borrow sits in a savings account, and you'll get it back after you've made all monthly payments on time. END
 TITLE: What Is Collateral? CONTENT: Can I Get a Loan Without Collateral?\n------------------------------------\nYou can take out unsecured loans, such as a student loan or personal loan, without collateral. Unsecured credit cards don't require a deposit as collateral like secured cards do. Since there's no asset to seize, unsecured debt generally carries higher interest rates, and it may also be harder to get. You'll likely need strong credit or a cosigner to qualify.\nIf you don't repay an unsecured loan or pay off credit card debt as required, your credit score will suffer. Your loan may go to collections, and you could be sued for the unpaid debt. While there's no collateral to protect the lender, the benefits of good credit should be enticing enough to encourage you to stay on top of payments. END
 TITLE: Should I Wait to Buy a House? CONTENT: Consider the Current Housing Market\n-----------------------------------\nYour local housing market will play a big role in whether you decide to buy a home. It's influenced by a number of factors that can have a direct impact on homebuyers. These include:\n*   **Mortgage rates**: When the cost of borrowing money falls, mortgage loan costs generally go down in kind. The opposite is also true. Mortgage rates hit an all-time low during the pandemic thanks in no small part to the Federal Reserve slashing its target interest rate. These lower rates enticed buyers to flood the housing market and snatch up cheaper mortgages. At the time of this writing, weekly average rates for 30-year and 15-year fixed mortgages were both still under 3%.\n*   **Housing inventory**: When fine-tuning your timeline for buying a home, low housing inventory could make it difficult to find a property that meets your expectations. You'll also be up against fiercer competition from other buyers when there's less to choose from. On the flip side, if inventory is plentiful, you could find yourself in a buyer's market. As of March 2021, housing inventory was down 28.2% compared with the same month in 2020, according to the National Association of Realtors. What's more, property took just 18 days to sell on average. This is all evidence of low supply and high demand.\n*   **Home prices**: The national median home price in April 2021 was 17% higher than it was a year earlier—reaching a record-breaking $375,000, according to Realtor.com data. No one knows for certain if and when home prices will fall again, but prospective homebuyers are watching closely. Some may choose to wait until prices (hopefully) come down; others may feel a sense of urgency to make a purchase before prices get any higher.\nBallooning home prices, a reduction in inventory and low interest rates have created a hot housing market during the pandemic, attracting an influx of cash buyers and real estate investors. Meanwhile, more Americans are moving, thanks in part to the explosion of remote work. A recent Neighbor.com survey found that 20% more people are planning on moving in 2021 when compared with 2020. This is all to say that a number of factors come into play when deciding whether to buy a home. END
 TITLE: Should I Wait to Buy a House? CONTENT: Why Now Might Be the Right Time to Buy a House\n----------------------------------------------\nThe complexity of the housing market has likely given you a lot to think about, and there are a few factors you should pay close attention to if you're still on the fence. It may be an ideal time to buy if:\n*   **You've saved an adequate down payment.** Having a 20% down payment has its perks. It eliminates the need for mortgage insurance, sets the stage for a smaller monthly payment, and gets you into your home with a good amount of equity. If that's too steep, it's still possible to buy a home with as little as 3.5% down. Consider your larger financial picture. If you have a decent down payment, now might be a good time to make an offer.\n*   **You can reasonably afford it.** Affordability is about more than just the down payment and monthly mortgage bill. There are also closing costs, homeowners insurance, property taxes and home maintenance—not to mention mortgage insurance if you put down less than 20%. If your budget can easily absorb these costs, and you've built a solid emergency fund, you might be ready to buy a home.\n*   **You live somewhere where housing prices are expected to rise.** If local real estate experts predict a continual uptick in housing prices in your area, getting in sooner rather than later may help you save money in the long run.\n*   **You're tired of renting.** When you pay rent month after month, you aren't building any equity in return. And unlike mortgage payments, rent payments generally don't help your credit since they're unlikely to show up on your credit report. END
 TITLE: Should I Wait to Buy a House? CONTENT: When You Should Consider Waiting to Buy a House\n-----------------------------------------------\nNot everyone is ready to take the plunge into homeownership. Below are a few reasons to consider holding off:\n*   **You aren't financially ready.** Even if you find a home you think is within your price range, you'll still need to come up with a down payment, plus another 2% to 5% for closing costs. On top of the additional monthly costs mentioned above, experts recommend socking away 1% of your home price per year to maintain the property. If that gives you sticker shock, you may want to wait until you're on better financial footing to buy a home. This includes building a strong emergency fund to cover surprise home repairs and other unexpected life expenses.\n*   **Your credit score needs work.** Every lender is different, but most require a FICO® Score☉ of at least 620 to qualify for a mortgage. If your credit score just makes the cut, you'll likely pay more in interest and loan fees compared with someone who has stronger credit. Taking steps to improve your credit before applying for a mortgage can improve your odds of getting approved and help make your home loan more affordable. \n*   **Home prices are expected to drop.** Buying a home during a housing bubble can be risky. As demand levels off and supply increases, prices tend to go down. The problem, of course, is that no one can predict when (or if) that will happen. Let your gut and your personal financial situation be your guide. If you're unable to easily take on the expenses that come with homeownership, you may be better off waiting to see if prices come down. END
 TITLE: Should I Wait to Buy a House? CONTENT: How to Be Sure You're Ready to Buy a House\n------------------------------------------\nHere's a checklist to help you determine if you're ready to buy a home, regardless of the current housing market:\n*   You have money saved to cover your down payment and closing costs.\n*   Your emergency fund is topped off with at least three to six months' worth of expenses.\n*   Your credit score is high enough to qualify for a decent interest rate.\n*   Your income is such that you can easily keep up with monthly mortgage payments and maintenance. END
 TITLE: Should I Pay Off My Mortgage Early? CONTENT: Advantages of Paying Off Your Mortgage Early\n--------------------------------------------\nThe advantages of paying off your mortgage ahead of schedule are fairly obvious:\n*   **Eliminating your mortgage expense could free up a significant amount of your income for other things.** A mortgage payment is the largest single monthly outlay for most homeowners. What you'd do with that extra cash each month would be up to you, but depending on circumstances such as your age, the extent of your savings and your personal preferences, you might invest it, stash it in a savings account or travel fund, or use it for home improvements, among many other options.\n*   **Paying off your mortgage early will save you in interest.** Charges you'd otherwise be paying over the life of the loan are yours to keep and use for other things. END
 TITLE: Should I Pay Off My Mortgage Early? CONTENT: What to Consider Before Paying Off Your Mortgage Early\n------------------------------------------------------\nSo if you have enough cash on hand to make extra mortgage payments each month (or quarter, or even annually), or if an inheritance or other windfall gives you a chance to pay off your mortgage in full, why wouldn't you? Here are some considerations:\n*   **Have you maxed out your retirement savings?**  \n    Before you look to reduce your mortgage debt, make sure you've fully funded any 401(k) plan you have through your employer, plus any personal individual retirement accounts (IRAs). For 2019, you can contribute a maximum of $19,000 to your 401(k), up from $18,500 in 2018, and $6,000 to a personal IRA, up from $5,500 in 2018. If you're over 50, you can increase those contributions by $6,000. The tax advantages of these contributions, along with the potential for long-term growth in your retirement investments, make them the first place you should be stowing any windfall you've received.\n*   **Do you have a hefty source of emergency cash?**  \n    A house you own free and clear is a significant piece of wealth, but it's not something you can quickly convert to cash in a crisis. Selling a home often takes months, even in a strong housing market. You can secure a home equity loan more quickly, but even that will likely take a few weeks, and it would put you back in debt—possibly at a significantly higher interest rate than you had on your original mortgage. So before you sink a large chunk of cash into settling your mortgage, make sure you've set aside a healthy \"rainy day\" fund—at least enough to cover six months' worth of household expenses.\nIf you answered no to either of these questions, you should consider organizing your finances until you can answer yes to both—and before you make it a priority to pay off your mortgage early.\nHere are some additional questions you should ask before deciding to complete your mortgage payments ahead of schedule. More than one of these considerations may come into play in any given household, and it may be helpful to consult a financial planner or accountant to help you sort out and prioritize all that apply to you.\n*   **Is there a prepayment penalty on your mortgage?**\n    They are rare in new mortgage contracts, but some older mortgages contain requirements that you must make a balloon payment of several thousand dollars if the loan is paid off ahead of schedule. If your mortgage contains such a prepay penalty clause, you'll want to compare the penalty amount with what you'll save in interest by paying off the loan early to make sure you don't lose out on the deal and to make sure (at the very least) that you don't lose money by triggering a penalty.\n*   **Can you make more by investing your money than you'll save by paying off your mortgage (and do you want to if you can)?**  \n    Some financial pros equate paying off your mortgage early to opening a savings account that pays you interest at the rate you borrowed at, for the rest of the loan's lifespan. That's great, but if you got a good rate on your mortgage—as many did when rates were at historic lows following the 2008 market crash—that \"return\" may be fairly modest compared with what you'd get by putting your cash into stocks or mutual funds. If you're getting close to retirement and already have your nest egg organized, that may not be a big concern. But if you're nearer to the start of your career and working to accumulate retirement wealth, you may want to consider investing your spare cash more aggressively, rather than paying off the mortgage.\n*   **How much do you rely on mortgage interest deductions to offset your federal income tax?**\n    If your total mortgage amount is $750,000 or less, you are eligible to deduct mortgage interest payments on your federal income tax return, so paying off your mortgage early could increase your annual tax bill. The impact on you will depend on your income and tax bracket, how much interest you're currently paying on your mortgage, and what other deductions you may qualify for. Consult with your financial advisor about the tax consequences of paying off your mortgage early, for the current tax year and the years ahead. END
 TITLE: Should I Pay Off My Mortgage Early? CONTENT: What About Your Credit Scores?\n------------------------------\nThere likely won't be any dramatic change in your credit score as a consequence of closing out your mortgage loan. While closing credit card accounts can hurt your credit score (by reducing the total amount available to you to borrow), closing a mortgage has very little effect. Like paid-off student loans and auto loans, a mortgage that's paid in full will remain on your credit reports at the three national credit bureaus (Experian, Equifax and TransUnion) for 10 years as a \"closed account in good standing.\"\nAt the end of that 10-year period, if you haven't established any new mortgage accounts, your credit scores may diminish slightly as a result of reduced credit mix—the combination of different loan types credit scoring models see as a sign of a well-rounded credit user. But as long as your other credit accounts (credit cards, car loans and the like) are up to date and continue to be paid on time, your score will also tend to have risen over those 10 years, reflecting greater experience as a credit manager. So while there are many factors to consider when deciding about paying your mortgage off early, your credit score need not be one of them.\nIf you have an opportunity to pay off your mortgage early, congratulations. If you consider that option and its potential consequences carefully, you can make the right decision for your financial future. END
 TITLE: How to Win a Bidding War on a House CONTENT: How to Make a Competitive Offer on a House\n------------------------------------------\nWinning a bidding war has everything to do with convincing a seller that you're the best buyer they're going to find. A recent TD Bank survey found that 19% of competitive bidders were prepared to offer up to $50,000 more than the asking price of a home. It likely isn't the best strategy to present an offer that's at or below the home's asking price, as most sellers will be drawn to higher bids. Of course, offering too much right out of the gate could win you the bid but leave you paying more than you'd like. Bidding above asking can be especially prohibitive if your offer exceeds your mortgage lender's appraisal. In this case, you may have to cover the difference in cash before the lender will approve the transaction.\nAn experienced real estate agent or broker who's familiar with your local market can help gauge the seller and clarify what a competitive offer looks like. Some questions to ask yourself include:\n*   Are there any competing bids?\n*   Are there many other similar properties on the market, or is this property one-of-a-kind?\n*   Are you prepared to offer enough to meet, and likely exceed, the fair market value of the home? A trusted real estate agent should be able to clue you in to average market prices. END
 TITLE: How to Win a Bidding War on a House CONTENT: Get a Preapproval Letter\n------------------------\nComing to the negotiation with a preapproval letter in hand shows the seller that you're serious about closing the deal—and that you're financially prepared to do so. Think of the mortgage preapproval process as the first step toward getting a home loan. It involves a thorough review of your finances, which includes your income, assets and credit information. The lender will then provide a letter that states your anticipated loan amount and interest rate based on the information you've provided.\nHaving a preapproval letter puts muscle behind your offer because it tells the seller that you're in a strong position to secure financing and have a lender ready to extend the funds to you. If they accept your offer, you'll still need to undergo the formal mortgage application process, but getting preapproved beforehand can help speed things along. What's more, most sellers won't even consider your offer unless you've been preapproved. END
 TITLE: How to Win a Bidding War on a House CONTENT: Make an Offer Over the Asking Price\n-----------------------------------\nWhen there are multiple bids on the table, dialing up your offer can help you stand out from the competition. In some cases, sealing the deal may require a bid that's only a few thousand dollars over the asking price, which shouldn't increase your monthly payment too much when you spread that out over a 15- or 30-year mortgage.\nThis strategy can certainly catch a seller's attention, but it's wise to keep your emotions in check to avoid overbidding to the point that you break your budget. Even if you have a preapproval letter for a certain amount, that doesn't mean you ultimately have to borrow that much. Think in terms of your projected monthly payment. When considering how much house you can afford, a common rule of thumb is to keep your monthly housing expenses at or below 28% of your gross (pretax) monthly income. END
 TITLE: How to Win a Bidding War on a House CONTENT: Limit the Contingencies\n-----------------------\nDuring traditional home sales, buyers can make offers that are contingent upon certain requirements being met first—like selling their current home before closing on the new one, for example. Other contingencies allow a buyer to back out of a real estate transaction if they're unable to secure financing, or an appraisal reveals that the home's fair market value is lower than their offer. Contingencies can take many forms, but they're often related to inspections, appraisals, financing and insurance.\nDoing away with contingencies could tip the scales in your favor during a bidding war. From the seller's point of view, it can make the deal more appealing, as a smoother and less complicated transaction generally leads to an easier and quicker closing.\nJust keep in mind that contingencies are designed to protect buyers, so eliminating them does come with some risk. An inspection contingency, for instance, gives the buyer an out if they aren't satisfied with home inspection results. Waiving this contingency could come back to bite you if the home ends up requiring costly repairs or renovations. A real estate attorney can best advise you in navigating contingencies for a specific offer. END
 TITLE: How to Win a Bidding War on a House CONTENT: Make an All-Cash Offer\n----------------------\nIf you're financially able, an all-cash offer can give you a serious leg up in a bidding war. Unlike buyers who need to finance the transaction, cash buyers are able to close the deal without needing final approval from a mortgage lender. This can accelerate the process and set the stage for a much quicker sale—which can be very attractive to sellers as mortgage applications can take up to 60 days to process.\nCash offers are often prioritized even if they aren't as high as other non-cash offers. Before draining your accounts to pay for a home in cash, however, consider your financial big picture. Will making a cash offer deplete your emergency fund or drive you into credit card debt? If you're withdrawing from a tax-advantaged retirement account like a 401(k) and you're under 59½, you'll also have to pay taxes on that money plus a 10% penalty. These are important details to consider before making an all-cash offer. END
 TITLE: How to Win a Bidding War on a House CONTENT: The Bottom Line\n---------------\nNo two sellers are alike, which means that every bidding war is different. No matter what, getting your financial house in order before buying a home is the best way to go. Doing so can enable you to navigate related expenses with ease, from covering your down payment and mortgage fees to addressing home repairs and maintenance. Remember, you can review your credit reports from all three credit bureaus through AnnualCreditReport.com to see where you stand in the eyes of lenders. Experian can help you prep your credit ahead of a home sale. By creating an Experian account, you can check your free credit report and credit score, which is a great first step toward securing a low interest rate on a home mortgage. END
 TITLE: Can You Get a Cash-Out Refinance With Bad Credit? CONTENT: What Is a Cash-Out Refinance and How Does It Work?\n--------------------------------------------------\nA cash-out refinance is a loan that replaces your existing mortgage—but with a little extra added on. The new loan will satisfy your old balance, and you'll get the difference in cash. You can do whatever you want with this surplus. People often use it for home improvement projects or to pay off high interest revolving debt.\nTo get a cash-out refinance, the first thing you will need is sufficient equity in your home. Your lender will use your equity amount to establish how much excess cash they'll give you. To get a cash-out refinance, contact your current lender or look online for other lenders you may want to work with.\nThese types of loans might sound like a perfect solution to someone who's strapped for cash, but there are certain pitfalls to consider. Keep in mind that any time you refinance, your new loan will have different terms, so it's important to check the details carefully, such as the new interest rate and fees. If your interest rate goes up, the value of refinancing may not be advantageous over the life of the loan.\nLook out for other costs associated with cash-out refinancing as well, such as closing costs and private mortgage insurance (PMI). A cash-out refinance will have closing costs—which for home purchases are around 2% to 5% of the mortgage amount—and PMI will be charged on loans that exceed 80% of the home's value. These costs alone might make a cash-out refinance more expensive that it's worth, so make sure to dig into the loan's details before moving forward. END
 TITLE: Can You Get a Cash-Out Refinance With Bad Credit? CONTENT: What Credit Score Do I Need?\n----------------------------\nUnlike other refinancing options, cash-out refinancing is open to people with fair and poor credit. While home equity lines of credit (HELOCs) and home equity loans require applicants to have minimum FICO® Scores☉ between 660 and 700, a cash-out refinance lender may be satisfied with less.\nBecause lenders that facilitate cash-out refinancing are issuing you an entirely new mortgage, they become the first party lien holder, which means if you default, they have clear access to your property to recoup their investment. In other types of home equity options, the new lender may only have claim to the equity against which you are borrowing—meaning if you default, the new lender will have to compete with another lender to get their investment back.\nThis difference may make a lender more willing to take on someone with a lower credit score for a cash-out refinance, but does not mean they will give these loans to everyone. If you have a substantial history of missed payments or any glaring blemishes in your credit file, creditors may think twice about issuing you new debt. END
 TITLE: Can You Get a Cash-Out Refinance With Bad Credit? CONTENT: Be Careful Using a Cash-Out to Pay Off Debt\n-------------------------------------------\nThe good thing about cash-out refinancing is that you can do whatever you want with the excess cash. But be careful. Most important, know that if you use your new cash to pay off other debt—like credit card debt—you are putting your home up as collateral. This means if you default on your new and larger payment, you risk foreclosure and the loss of your home.\nCredit card debt is considered unsecured, because the lender has no collateral to hold on to if you stop making payments. When you use a cash-out refinance to pay off unsecured debt, you are essentially converting it to secured debt—giving the lender collateral (your home) they can take in the case that you default. Depending on your financial situation, this move might be fine. Be sure to always make your payments on time and plan your finances ahead of time to avoid getting into a situation that could result in a lender foreclosing on your property. END
 TITLE: Can You Get a Cash-Out Refinance With Bad Credit? CONTENT: Options Other Than a Cash-Out Refinance\n---------------------------------------\nIf a cash-out refinance isn't for you, there are several other refinancing options you could look at, including a home equity line of credit and a home equity loan.\nAs you pay your mortgage, the money paid toward the principal converts into equity—which is the value of your property you actually own. A **home equity line of credit**, or HELOC, is a line of credit issued by a lender that is based on the equity you have in your home. Depending on the lender, you may be eligible for a line of credit equal to around 60% to 85% of your equity.\nA **home equity loan** is similar to a HELOC, but with one key difference. When you get a HELOC, the line of credit can be used almost like a credit card: borrow what you want, when you want. A home equity loan is more like a personal loan, in which you get paid a lump sum and then repay it over a fixed period of time.\nIn the case of the HELOC, the interest you pay will be variable, similar to a credit card's, but will only be based on the amount of credit you use. With a home equity loan, the interest rate will be fixed and paid out over the course of your pre-established repayment plan.\nDo your research when choosing between a HELOC and a home equity loan. And as always, if you are considering refinancing your mortgage using any of these options, make sure to check your credit reports and scores so you know what lenders will be using when they consider you for a new loan. END
 TITLE: First-Time Home Buyers: How to Qualify for Loans, Programs and Grants CONTENT: What Are the Different Loans, Programs and Grants?\n--------------------------------------------------\nState and federal governments and nonprofit organizations offer several types of programs to help first-time homebuyers secure a mortgage. Here are just a few examples:\n*   **Conventional mortgages.** Conventional loans are mortgages not backed by a government agency. Some loans backed by Fannie Mae and Freddie Mac require a minimum down payment of just 3%.\n*   **Government agency—insured loans.** These are loans insured by the Federal Housing Administration (FHA) and require a minimum down payment starting at 3.5%. Loans insured by the Department of Veterans Affairs and the Department of Agriculture have no minimum down payment requirement.\n*   **Secondary loan programs.** Some states offer homebuyers a secondary loan to help with a small down payment and closing costs. Some examples include the California MyHome Assistance program and Tennessee's Great Choice Plus program.\n*   **Down payment grants.** Some programs make outright grants, rather than loans, for down payments, meaning this money does not need to be paid back. For example, the National Homebuyers Fund offers a down payment assistance grant worth up to 5% of the loan amount to low- and moderate-income homebuyers, whether or not it's their first home purchase. END
 TITLE: First-Time Home Buyers: How to Qualify for Loans, Programs and Grants CONTENT: Who Is Eligible for a First-Time Buyer Program?\n-----------------------------------------------\nSpecific rules vary according to the state, county or city program. Some common guidelines:\n*   **Past owners can be first-time buyers.** Typically, anyone who has not owned a home in the past three years is considered to be a first-time buyer.\n*   **Some programs are for all buyers.** Down Payment Resource maintains a national database of around 2,400 programs that offer mortgage assistance. According to DPR, about 40% of the programs aren't solely earmarked for first-time buyers.\n*   **You don't need sparkling credit scores.** FICO® Scores☉ of at least 640 or so are typically all that are needed to qualify for first-time homebuyer assistance. FICO® Scores range from 300 to 850. But chances are you may need higher credit scores of around 680 or so to qualify for a conventional mortgage. For more, see \"What is a Good Credit Score?\"\n*   **Help is targeted to public service workers.** Some programs are specifically focused on helping teachers and public safety workers. The Good Neighbor Next Door program is open to law enforcement, primary school teachers, firefighters and emergency medical technicians. The deal: 50% off the list price of a home that is in the program's database, as long as you agree to stay in the home for at least three years.\n*   **Income limits apply.** These programs are designed to help low- and moderate-income households afford a home. Eligibility is often linked to the local median income; the limit is typically more for households with multiple occupants.\n*   **There's an eligible home price cap.** Both conventional mortgages and FHA-insured loans have specific borrowing limits in the continental U.S. State and local agencies may have different limit requirements to be eligible for first-time buyer assistance.\n*   **Class required.** Many programs require borrowers to complete a class (it can be online) that walks through the financial responsibilities of homeownership. There may be a fee for this class. END
 TITLE: First-Time Home Buyers: How to Qualify for Loans, Programs and Grants CONTENT: How to Find Programs You May Be Eligible For\n--------------------------------------------\n*   **Fire up your browser.** Make a few different passes at an online search. First, type in the name of your state with the phrase \"first-time homebuyer program\" and then again with \"homebuyer program.\" You should get results that send you to specific pages at your state's Housing Finance Agency. Then repeat the exercise, plugging in your county to see if there are local programs available.\n*   **Sit down with a lender who specializes in first-time buyer programs.** Not all lenders are authorized to offer FHA-insured loans. (You can search online for FHA-approved lenders.) And not all lenders are up to speed on how the 3% down payment for conventional mortgages work. Ask friends, family and real estate agents for recommendations of lenders that close a lot of mortgage deals for first-timers and that have experience adding state or local grants or loans to help get the deal done. END
 TITLE: First-Time Home Buyers: How to Qualify for Loans, Programs and Grants CONTENT: How to Qualify for a Mortgage Loan\n----------------------------------\nWhether or not you use a first-time homebuyer program to get into your new home, you'll still need to qualify for a mortgage. Here are some steps you can take to be proactive:\n*   **Check your credit reports and scores.** Do this at least three months in advance to give yourself time to address any issues. You can get a free credit report from Experian.\n*   **Check your debt-to-income ratio.**debt-to-income ratio (DTI), calculated by dividing your monthly debt payments by your monthly gross income, tells lenders whether adding a new loan would stretch you too thin. Mortgage lenders use two rules of thumb with your DTI: The first is to keep your monthly housing costs below 28% of your gross income, and the second is to keep your total monthly debt payments below 36% of your gross income.\n*   **Consider your options.** If your credit score is below 620, which is typically what lenders require for conventional mortgage loans, don't fret. It is possible to get a mortgage with bad credit (you can go as low as 500 with 10% down payment on an FHA loan). Just keep in mind that you'll have fewer options and may need to pay a higher interest rate. If you want a better selection of lenders and a lower interest rate, try improving your credit scores before applying for a mortgage.\n*   **Address potential issues.** If your DTI is on the high end or you found something troubling on your credit report, address the concerns immediately. For example, pay down your credit card balances, get caught up on late payments and dispute any errors you find. These actions can take a while to reflect in your credit score, so it's critical that you start working on them as soon as possible. Also, avoid applying for credit cards and other loans leading up to your mortgage application and throughout the mortgage process. END
 TITLE: First-Time Home Buyers: How to Qualify for Loans, Programs and Grants CONTENT: Getting Preapproved for a Mortgage\n----------------------------------\nBefore you start house hunting, it's wise to get preapproved. Not only does this show sellers that you're serious but also that there's a good chance the sale will go through if they accept your offer. Take these steps before seeking preapproval.\n*   **Don't confuse a preapproval with a prequalification.** A mortgage prequalification gives you an estimate of how much you can borrow, but it doesn't require a credit pull or in-depth information. A preapproval, on the other hand, requires a full mortgage application along with supporting documents and a hard credit pull. A prequalification can help you determine your budget but isn't as convincing as a preapproval.\n*   **Gather your documents.** A mortgage is a major financial commitment, both for you and the lender. So expect to share a lot more documentation than you would if you were applying for other loan types. Requirements can vary by lender, but expect to at least share your pay stubs, W-2s and tax returns for the past couple of years, bank statements for the past few months, other applicable income documents, information on your other debts and copies of your government-issued ID.\n*   **Shop around.** If you're planning on buying a home soon, consider getting preapproved by more than one lender. This won't necessarily make a difference to sellers, but it can give you a chance to compare interest rates and terms with several lenders, as well as their customer service. That way, when you find the house you want, you'll be ready to go with the lender that offers the best terms. END
 TITLE: First-Time Home Buyers: How to Qualify for Loans, Programs and Grants CONTENT: Additional Costs to Consider\n----------------------------\nThere are programs that can help you with your down payment and closing costs, but there are some other costs to consider as you determine your budget.\n*   **Mortgage insurance.** If you're applying for a conventional mortgage or FHA loan and your down payment is less than 20%, chances are that you'll have to pay some form of mortgage insurance. Private mortgage insurance (PMI) applies to conventional mortgage loans and can cost between 0.5% and 1% of your loan amount. With an FHA loan, you'll pay mortgage insurance premium (MIP), which includes an upfront payment of 1.75% of the base loan amount and an annual charge of 0.45% to 1.05%, depending on your base loan amount and down payment.\n*   **Homeowners insurance.** This covers you against losses and damage caused by various perils, including burglary, fires and storms. Cost can vary depending on where you live, but you can generally expect to pay around $35 per month for every $100,000 of home value. If you live in a flood zone, you may also be required to buy flood insurance.\n*   **Property taxes.** Your county, city or school district may charge property taxes to generate revenue. Property tax rates can vary depending on where you live, so check with your county assessor's office to find out your annual rate.\n*   **Homeowners association fees**: If your new home is within the bounds of a homeowners association (HOA), you'll likely need to pay an investment fee to join and monthly dues. Check with the real estate agent or HOA directly to find out the cost.\n*   **Repairs and maintenance**: Depending on the state of the home, these ongoing costs can be unexpected and regular or infrequent. As a result, it's wise to not use all of your spare cash for the down payment and closing costs. Instead, hold some back in an emergency fund in case you need it.\nGrab Your Tax Credit\n--------------------\nAfter you buy a home, you may be eligible for additional financial help. Your main mortgage charges interest. All homeowners, regardless of income, can claim mortgage interest as a deduction on their taxes. A deduction reduces your taxes based on your tax rate. For example, if you have a $1,000 deduction and you are in the 25% tax bracket, your deduction reduces your taxable income by $250 ($1,000 x 0.25%).\nAn even better deal is a tax credit. A tax credit reduces your taxes dollar for dollar. If you have a $1,000 tax credit, your taxable income is reduced by the full $1,000.\nIf you meet certain income requirements, you may be eligible for a mortgage tax credit that allows you to claim a credit on up to $2,000 a year in mortgage interest payments. If your mortgage interest is more than $2,000, you can claim the rest as a tax deduction. That means you can reduce your taxable income for the year by $2,000. To claim this credit, you must obtain a Mortgage Credit Certificate (MCC) from your state or local housing agency. END
 TITLE: How to Set (and Reach) Your Financial Goals CONTENT: Examples of Financial Goals\n---------------------------\nYour financial goals are unique to you, but here are some common ones you may be working on.\n### Create a Budget\nA budget is a financial plan that's designed to help you live within your means, prevent overspending and encourage responsible financial habits. Creating a budget that works for you begins with understanding two key details: your income and expenses. The idea is to clarify how much money is coming in and going out on a monthly basis.\nCheck your recent bank account and credit card statements to review where your money goes, including your discretionary spending, fixed expenses and savings. Pick a budgeting method that feels like a good fit for your lifestyle and that you can see yourself sticking to. The 50\/30\/20 budget or zero-based budget are two popular approaches that can help you free up money to meet your other financial goals.\n### Build an Emergency Fund\nAn emergency fund is just that—a reserve of cash that's there for you when the unexpected happens. From home repairs to surprise medical bills, financial emergencies can come in all shapes and sizes. Having a solid emergency fund provides peace of mind that these expenses won't totally derail your budget. A robust emergency savings account can be the safety net that saves you from having to take on debt.\nExperts recommend socking away three to six months' worth of expenses in your emergency fund. This in itself can feel like a big goal, but something is better than nothing. Making room in your budget for monthly contributions to your savings account can add up quickly. Come up with a realistic target number each month, then set up automatic transfers to make it a habit. If you wind up tapping your emergency fund, be sure to replenish it as soon as you can.\n### Buy a House\nMany Americans are ready to go the extra mile to achieve their goal of homeownership. According to a 2019 Wells Fargo survey, 72% were willing to cut their expenses to save for a down payment. Almost half were open to taking a second job. If buying a home is on your bucket list, it's helpful to understand what to expect from the process. Working with a lender to get preapproved for a mortgage can clarify how much house you can afford. It can also help you ballpark your monthly mortgage payment and estimate how big of a down payment you need to save up.\nWhether homeownership is near or far, it's wise to monitor your credit. You can check your credit report from all three credit bureaus for free through AnnualCreditReport.com, and it's wise to do this several months before approaching mortgage lenders. Be on the lookout for past-due accounts, high account balances and accounts you don't recognize, which can all hurt your credit score. It's key that you also check your credit score, which you can do for free through Experian. Improving your credit can put you in the best position to get approved for a mortgage with a low interest rate. Continue paying your bills on time, and avoid making large transactions or applying for new credit during this time.\n### Save for Retirement\nSaving for retirement can feel like a tall order—especially if you haven't started yet. In fact, 56% of Americans don't know how much money they'll need to retire comfortably, according to a 2019 Northwestern Mutual study. If you feel behind here, know that the best time to start saving is now.\nLook first to your job to see if it offers an employer-sponsored retirement plan. Contributing to a 401(k) directly from your paycheck can help you build your nest egg while reducing your taxable income today. What's more, your employer may match a portion of your contributions. Opening an IRA is another effective way to save when a 401(k) isn't an option. If you don't have enough disposable income to contribute to your retirement, revisit your budget to see if you can cut your expenses and free up some cash.\n### Pay Off Student Loans\nThe average student loan balance came in at $38,792 in 2020, according to an Experian analysis. If your goal is to pay off your debt faster, begin by assessing your student loans: List out all your balances, interest rates and monthly payments. Paying more on accounts with the highest interest rates could save you the most money in the long run, but it might be more encouraging if you knock out those smaller loans first.\nYou might also consider refinancing your student loans. This involves taking out a new loan with a lower interest rate and using it to pay off your student loan balances. Accelerating your payments can help you pay off your debt faster and save you the most money over the long haul. END
 TITLE: How to Set (and Reach) Your Financial Goals CONTENT: How to Set Financial Goals That Stick\n-------------------------------------\nLaying out financial goals is only helpful if you're ready to work to achieve them. Here are ways to help set and follow through with your goals.\n### 1\\. Consider What Matters to You\nIt's certainly possible to work toward more than one financial goal at the same time, like contributing to your 401(k) while also paying down debt. However, spreading yourself too thin across multiple goals could slow down your progress. If you find yourself with competing goals, think about what matters to you most. For some, being debt-free translates to financial freedom. Others may prioritize buying a house or maxing out their 401(k).\nTo avoid diluting your efforts, consider which financial goals would bring you the most joy—then increase your savings rate accordingly until you cross the finish line. You can then get laser-focused on your next goal.\n### 2\\. Determine Short- and Long-term Goals\nYour financial vision will likely be a mix of short- and long-term goals. Short-term goals include anything you'd like to accomplish in the near future, such as building up your vacation fund or saving for a down payment on a home. Longer-term goals can take the form of retirement planning or setting money aside for your kids' college education.\nFor goals that have a longer timeline, investment accounts can be a great way to grow your wealth over time. Since you won't need the money in the near future, you're in a better position to weather market ups and downs along the way. Meanwhile, a high-yield savings account, certificate of deposit or money market account are usually your best options for parking money you plan on using sooner rather than later.\n### 3\\. Track Your Progress\nReaching a big financial goal probably won't happen overnight. To increase your odds of success, consider breaking larger goals into smaller, shorter-term objectives. Let's say you want to build your emergency fund up to $20,000. The first step is setting a realistic timeline. If you settle on a goal of having that much saved in three years, you'd need to save roughly $6,667 annually. You can break that down even further to $556 per month—or $278 per paycheck if you get paid twice monthly.\nThis number may suddenly feel more attainable. What's more, you're creating a simple way to monitor your progress. Establishing a savings target and timeline for each financial goal can make it easier to keep track of how you're doing.\n### 4\\. Hold Yourself Accountable\nYour plan won't do you any good if you don't follow through. While tracking your progress, you may find months where you fall short of your target. Look at these hiccups as opportunities to understand why you're struggling. Is your short-term goal too ambitious? You may find that overspending in other areas of your budget is impacting your ability to keep up with your savings target. Holding yourself accountable will require you to pinpoint your challenges, and plan ahead to reduce the likelihood that they'll happen again.\n### 5\\. Course-Correct as Needed\nLife has a way of disrupting even the best-laid plans. While working toward your financial goals, you may need to make adjustments along the way. An unexpected job loss or dip in income, for example, might result in a temporary setback. The most important thing is to contribute whatever you can to your goals until you're back on solid ground. On the other end of the spectrum, coming upon a cash windfall or salary increase could enable you to accelerate your savings rate and reach your goals faster. Either way, your financial goals may change as you move through different phases of your life. This isn't a problem as long as they're aligned with your values and long-term vision. END
 TITLE: How to Set (and Reach) Your Financial Goals CONTENT: Keep Tabs on Your Credit Throughout the Process\n-----------------------------------------------\nKeeping track of your credit is crucial to your financial health. Create an Experian account to unlock access to your FICO® Score☉ and Experian credit report at no charge. Having this information on hand can help you strengthen your credit and set the stage for financial success. END
 TITLE: New Mortgage Refinance Option for Low-Income Families CONTENT: Is Now a Good Time to Refinance?\n--------------------------------\nThe recent trend of low interest rates suggests it could be a good idea to consider refinancing. Normally when the economy is healthy and unemployment rates are low, interest rates—the cost of borrowing money—rise because people feel more confident about borrowing to buy things they want (like a house). During uncertain economic times, however, rates usually fall because people are more cautious about taking on debt; in those cases, the U.S. government (through the Federal Reserve) and lenders try to make borrowing more attractive and less expensive, hence the lower interest rates during the pandemic.\nThe FHFA notes that people who benefit from the new program would save at least $50 per month on their mortgage payment, but they anticipate homeowners saving closer to an average of $100 to $250 a month. These numbers might not seem like much at face value, but an extra $1,000 to $3,000 per year could be the difference between having a solid emergency fund and not having a financial cushion at all.\nThe benefits of refinancing seem clear, but recent data shows many homeowners who could benefit from refinancing haven't taken advantage of that option. A study done by Freddie Mac revealed that between February and June of 2020, high-income households saved significantly more on refinancing than those with lower incomes when compared with previously popular refinancing periods.\n\"Last year saw a spike in refinances, but more than 2 million low-income families did not take advantage of the record-low mortgage rates by refinancing,\" Mark Calabria, director of the Federal Housing Finance Agency, said in a statement.\nPart of the reason some people don't pursue mortgage refinancing is because the process can get expensive: The FHFA's new program is intended to help offset some of the costs that come up. For example, it can provide a credit worth up to $500 for an appraisal, which is usually paid out of pocket by the homeowner.\nIt's also important to note that this new refinancing program does not permit cash-out refinances. A cash-out refinance allows you to tap part of the home's equity, which in turn frees up cash. If this is the type of loan you're looking for, you'll need to look outside the program. END
 TITLE: New Mortgage Refinance Option for Low-Income Families CONTENT: How to Qualify for an Enterprise Refinance Loan\n-----------------------------------------------\nIf you're interested in applying, there are some basic things to know. First, Freddie Mac and Fannie Mae have different names for the program. Freddie calls its enterprise-backed mortgages \"Refi Possible\"; Fannie's name for the same program is \"RefiNow\".\nSecond, you'll need to find out if your specific mortgage is backed by Fannie Mae or Freddie Mac. For Fannie Mae, you can search for your loan on their website; for Freddie Mac, you can use the loan lookup tool on their site.\nThird, to be eligible for the programs you'll need to meet a few different requirements:\n*   You must have a FICO credit score of at least 620.\n*   You need to earn at or below 80% of your area's median income.\n*   You'll need to provide proof that you've been current on mortgage payments for the past six months in a row.\n*   You haven't missed more than one mortgage payment in the past 12 months.\n*   Have a maximum mortgage loan-to-value (LTV) ratio of 95% or 97% depending on the property type.\n*   Your debt-to-income (DTI) ratio must be 65% or lower. END
 TITLE: New Mortgage Refinance Option for Low-Income Families CONTENT: Prepare for an Enterprise Finance Loan\n--------------------------------------\nIf you think an enterprise-backed mortgage refinance might be a good option for you, you'll need to follow much of the same process you would for applying for a traditional mortgage refinance:\n*   Get prepared by understanding why you're refinancing: Is it to reduce your monthly payment? Lower your interest rate?\n*   Check your credit to see if you can qualify. If your score is too low, take action to improve your credit score.\n*   Check interest rates and compare lenders' rates to determine whether a refinance will make sense for you.\n*   Find a lender you're comfortable with and let them know you're interested in the programs. Applications for Fannie Mae's RefiNow open in June 2021; Freddie Mac's ReFi Possible won't start accepting applications until late August 2021.\n*   Apply for the loan, and enjoy your new low rate or monthly payment. END
 TITLE: How Does a Short Sale Affect Credit? CONTENT: How Do Short Sales Work?\n------------------------\nA short sale is when you sell a home for less than your outstanding mortgage balance. It's a way to get out of a loan when you're underwater (meaning you owe more than the home's currently worth) and avoid foreclosure if you're having trouble affording your payments.\nBefore you proceed with a short sale, you'll need your lender's approval. Often, lenders may agree when a borrower runs into financial trouble—such as a job loss or medical emergency—and the lender determines a short sale will be more favorable than foreclosing on the property.\nIf you're approved, you'll still need to go through the home-selling process, which can be more complicated than a normal sale because your lender will ultimately be the one to accept or decline a buyer's offer. The timeline could also be drawn out if you have several lienholders (for instance, if you have a home equity loan or home equity line of credit), or if your lender sold your mortgage to an investor.\nAfter a short sale, you may be responsible for the difference between the sale price and the outstanding balance unless you get a waiver of deficiency from the lender or live in a state that doesn't allow deficiency judgments. END
 TITLE: How Does a Short Sale Affect Credit? CONTENT: Does a Short Sale Show Up on Your Credit Report?\n------------------------------------------------\nA short sale will show up on your credit report, but you might miss it if you don't know what to look for. That's because you won't actually see the words \"short sale.\" Instead, your mortgage loan account will have special codes applied that label it as \"settled\" and \"account legally paid in full for less than the full balance.\"\nOnce your credit report is updated with this information, you may see your credit scores drop. Because payment history is one of the most important scoring categories, settling a debt may have a large negative impact.\nYour exact point change will depend on the other information in your credit report, the scoring model and whether your lender reports a deficiency balance. When a deficiency balance is reported, the short sale might impact your credit scores like a foreclosure or deed in lieu of foreclosure would. Short sales without a reported deficiency balance could hurt your scores less than a foreclosure.\nThe overall impact on your scores may also be less if you didn't miss payments before selling the home. In contrast, foreclosures are always preceded by late payments.\nCredit scoring aside, a short sale can also be a better option than foreclosure because you won't need to wait as long to qualify for an FHA loan if you want to buy another home. END
 TITLE: How Does a Short Sale Affect Credit? CONTENT: A short sale could impact your credit scores as long as it remains in your credit reports, which may be up to seven years—similar to many other negative marks. If the short sale was preceded by one or more late payments, the seven-year timeline starts with the date of first delinquency that led to the short sale.\nIf you never missed a payment, the mortgage account will fall off your credit report seven years after your account was reported as settled. END
 TITLE: How Does a Short Sale Affect Credit? CONTENT: How to Start Rebuilding Your Credit After a Short Sale\n------------------------------------------------------\nAs with other major derogatory events, it can take a long time for your credit scores to recover from a short sale. It may be several years before your score fully recovers if you previously had a good credit score. Or, you may have to wait the full seven years if you had an excellent score. (People who have higher scores tend to experience larger score drops from new negative information in their credit reports.)\nIn the meantime, similar to what you might want to do after a missed payment, bankruptcy or foreclosure, you can look for ways to rebuild your credit.\n*   **Don't miss loan and credit card payments.** Making your bill payments on time adds positive information to your credit reports, which can help you improve your credit scores. Conversely, late payments typically hurt your scores, so try to always make at least the minimum payment on time on all your accounts, every billing cycle.\n*   **Open new accounts.** If you don't have any loans or credit cards, you may want to open accounts that can help you build credit. Secured cards and credit-builder loans are often good options for people who have poor credit. Depending on your credit, you could also look into good rewards credit cards, including options without annual fees.\n*   **Boost your score.** You can sign up for Experian Boost™† and add utility, cellphone and certain streaming service payments to your Experian credit report. These payments aren't otherwise included on your credit report, and their presence can then help improve your credit scores that are based on your Experian credit report.\n*   **Pay down debts.** Paying down the balances on your revolving accounts, such as credit cards and some lines of credit, can help lower your credit utilization ratio and may quickly improve your credit scores. Paying down installment accounts (auto, student and personal loan balances fall into this category) can also help your credit scores, but it might not be as impactful as lowering your credit utilization ratio.\nIf you're running into trouble with other bills, reach out to your creditors before you miss a payment. Ideally, you'll be offered a different repayment plan or a hardship program that's easier to manage and can help you avoid additional negative marks on your credit. END
 TITLE: How Does a Short Sale Affect Credit? CONTENT: Check and Monitor Your Credit After a Short Sale\n------------------------------------------------\nYou can check your credit report from all three credit bureaus through AnnualCreditReport.com. You can also sign up for an Experian account to monitor your credit for changes. Experian gives you free access to your Experian credit report, which will be updated every 30 days when you sign into your account, and a free FICO® Score☉ based on your report. The complimentary credit monitoring can also send you alerts, warning you of potential identity theft or fraud. If you do find something is amiss, you can address it quickly. END
 TITLE: Should You Buy a Condo or a House? CONTENT: Is a Condo or a House More Affordable?\n--------------------------------------\nIt's easy to assume a condo will cost you less than a house—but the ongoing costs of ownership may be more complicated than you think. Owning a house means you cover all the maintenance yourself, both interior and exterior. Landscaping, rain gutters, painting, fixing the roof, plumbing and more will be your responsibility with a house.\nCondo residents typically are responsible for just the interiors of their living space—the rest is handled by a condominium board (like a homeowners association) that collects dues from residents to manage the community's upkeep, including both maintenance and amenities. Fees are usually paid on a monthly or quarterly basis, and costs can range from a few hundred dollars a month to much higher for more plush facilities.\nDepending on the development, you may pay homeowners association (HOA) fees for a house as well, though this is less common. On average, a homeowner spends about $2,000 a year just on optional maintenance for their home, including things like paying for a gardener, pool service or house cleaning. Necessary maintenance costs around $1,000 or more each year, though experts recommend setting aside 1% of your home price per year for these costs just to be safe.\nAnother major cost consideration should be the condo's amenities themselves. You may balk at HOA fees yet find yourself spending thousands if you decide you want your own pool, a garage outfitted with gym equipment or an extensive home security system. Even some utility costs, such as water fees or garbage pickup, may be covered with condo fees—not so with a house.\nBoth types of property will require you to take out homeowners insurance and pay property tax. You can expect to pay around $500 a year on average for condo insurance, while homeowners insurance costs twice as much on average.\nProperty taxes will depend on the cost of the house or condo so are less of a contrast, but it's wise to check out the rates for any properties you look at: Some condos in a pricier part of town may require higher taxes than a house in a less desirable area. Also, a condo developer may have received tax breaks that it passed down to owners and which could end soon; check with your local assessor to find out if a particular development's taxes are expected to rise soon. END
 TITLE: Should You Buy a Condo or a House? CONTENT: Condo or House: Which Is Better?\n--------------------------------\nChoosing between a house or condo often comes down to cost and lifestyle preferences. Here's a look at the pros and cons of condo living to help you gauge the fit. END
 TITLE: Should You Buy a Condo or a House? CONTENT: Prepare Your Credit Before Buying a Condo or a House\n----------------------------------------------------\nAs soon as you start dreaming about a big yard or that 24-hour condo concierge, it's time to think about your credit. If you start prepping early, you can secure a lower interest rate when you lock down a mortgage—and make sure that you'll qualify for the loan in the first place.\n*   **Check your credit score.** This will give you an idea of how you'll match up with lenders—and help you gauge how much you can potentially improve your score. You can check your score for free with Experian to start.\n*   **Check your credit report****.** Review your reports from all three credit bureaus (Experian, TransUnion and Equifax) to catch any mistakes or red flags, such as high balances, that can impact your creditworthiness.\n*   **Don't apply for new credit.** That travel rewards card might have a great mileage bonus, but applying for a new line of credit triggers a hard inquiry on your credit report, sometimes causing a temporary drop in your score. In general, it's best to wait until after you've secured a mortgage to apply for any additional credit.\n*   **Avoid big purchases.** Your credit score suffers the most under two conditions: late payments and high balances. Paying off debt and curtailing big buys can reduce your credit utilization ratio (the percentage of total revolving credit you're currently using) for a better score. Plus, too many debts can increase your debt-to-income ratio, making you less attractive to lenders.\nStart building and improving your credit at least six months before you plan to apply for a mortgage. An improved credit score could save you thousands or even tens of thousands on your mortgage, so it's worth the time and effort to improve it, even slightly. (Saving up early for your down payment can also help reduce your costs over time.) END
 TITLE: How to Pay Off Your Mortgage Early CONTENT: Increase Your Regular Payments\n------------------------------\nIf you can justify it in your budget, consider increasing your monthly mortgage payments by an affordable amount. The key here is to ensure your extra contributions go towards your principal, not your interest or next month's bill—so check your loan terms and chat with your mortgage servicer to be certain.\nA regular payment increase that adds up to even just one additional full mortgage payment per year can save you thousands of dollars in interest over the life of a 30-year mortgage, and higher payments can save you even more. You can make extra payments manually when your budget allows, or add an ongoing principal-only amount to your regular payment. Many lenders allow you to adjust your payment to include the extra amount, whether you're paying by check or checking account debit.\nYou can also start making your payments biweekly if your lender allows it; if they don't, try to put aside the cash to do it yourself. This way, you pay half your monthly mortgage bill every other week—since it adds up to an extra payment per year, this will also save you interest money over time. END
 TITLE: How to Pay Off Your Mortgage Early CONTENT: Put \"Bonus Cash\" Toward Your Mortgage\n-------------------------------------\nIf you receive a windfall (such as an inheritance or work bonus, or perhaps a government-issued stimulus check you haven't spent yet), consider putting some or all of it toward your mortgage principal. Occasional payments of this sort might not accelerate your loan payoff as rapidly as increasing regular payments would, depending on the overall amounts. However, they can still significantly lower your long-term interest costs—particularly if you combine extra payments with the other methods in this article. END
 TITLE: How to Pay Off Your Mortgage Early CONTENT: Refinance Your Mortgage\n-----------------------\nReplacing your current mortgage with a new one through a mortgage refinance could land you a shorter repayment period and ideally a lower interest rate, depending on factors like your home's market value, current loan terms and your credit score. You'll be responsible for extras like closing costs and origination fees, which could cancel out your interest savings if you move out of your house before breaking even. But if you plan to be in your home for many years, reducing your loan term from 30 years to 15 or 20 years may save a significant sum. END
 TITLE: How to Pay Off Your Mortgage Early CONTENT: Recast Your Mortgage\n--------------------\nEssentially, a mortgage recast is a recalculation of your mortgage after you make a sizable lump-sum payment—perhaps with \"bonus\" money you've received, as mentioned above. In a recast, your lender adjusts the monthly payment and interest rate to match your lower balance for the remainder of the loan. While your loan's term length and interest rate stay the same, the recast will reduce the amount of interest you'll pay on the loan as well as your monthly payment. A loan recast will typically cost around $200 to $250, which is significantly less than a typical refinance.\nAnother plus: You may be eligible for this option even if you don't qualify for refinancing or the current prevailing interest rates don't make refinancing worthwhile. What if you don't need lower payments? Go back to step 1 and add more principal to your payments—there's your strategy for a quicker payoff. END
 TITLE: How to Pay Off Your Mortgage Early CONTENT: Request a Mortgage Loan Modification\n------------------------------------\nRather than replacing your mortgage with another one, loan modifications do exactly what the name suggests: modify your existing mortgage loan. Typically, you'll hear about mortgage modifications in relation to financial hardship: The homeowner gets behind on payments and negotiates a change to the loan length or interest rates so they can get back on track and avoid potential foreclosure. If you can prove you're in a genuine bind regarding your mortgage payments, you can discuss this option with your lender.\nThe big picture is that a mortgage modification could help you to pay off your loan earlier than you would if you stuck with your original terms, should they become unaffordable. If it helps you avoid foreclosure, it's worth considering even if the end result is not reducing your payoff time.\nWhen your financial situation improves, a modification may allow you to begin putting more toward your payments to help achieve an earlier payoff date. A modification could damage your credit, however, so consider this option carefully. Rather than a primary strategy for early payoff, it could be best used when you're experiencing difficult times but plan to get back on track—and even get ahead on your payments—down the road. END
 TITLE: How to Pay Off Your Mortgage Early CONTENT: How Paying Off Your Mortgage Early Can Affect Your Credit\n---------------------------------------------------------\nIf you're wondering how much paying off your mortgage early affects your credit score, the answer is: not much. Unlike the potential credit ramifications of closing a credit card account, finishing off your mortgage payments is more akin to closing student or auto loans, with only a minor effect, if any, on your credit.\nOnce your mortgage is paid in full (congratulations, homeowner!), it shows up on your credit report as a closed account in good standing—assuming you've been making on-time payments. There it will remain for the next 10 years. After that decade concludes, you may see a slight drop in your credit score because your credit mix (or the blend of different loan types you have) no longer includes a mortgage. However, keeping your credit card balances low and paying all your bills on time will be a far more significant factor for your credit score. Monitor your credit score regularly to see how these actions can play a part in your credit picture. END
 TITLE: What Is a Crypto Rewards Credit Card? CONTENT: How Do Crypto-Earning Credit Cards Work?\n----------------------------------------\nBefore delving too deeply into crypto-earning credit cards, first make sure you understand how cryptocurrency works in general: Cryptocurrencies are digital currencies that can be used to buy goods and services, just like the U.S. dollar and other fiat currencies. Cryptocurrencies can also be traded like other investments. The value of cryptocurrencies tends to be extremely volatile and they are considered to be a speculative asset.\nFor the most part, credit cards that earn crypto rewards function like the traditional rewards credit cards you may be used to. The main difference is that you're earning cryptocurrency instead of cash back, points or miles on your everyday purchases. Crypto-earning credit cards allow you to earn various digital currencies with your everyday spending. Like regular rewards credit cards, the rewards rates can vary by card. Also, the types of currencies you can earn also depend on the card.\nFor example, the SoFi Credit Card is a cash back credit card that offers 2% cash back on all eligible purchases, but it also allows you to redeem your rewards for Bitcoin or Ethereum.\nIn contrast, the Gemini Credit Card, which currently has a waitlist, offers up to 3% back on dining, 2% back on groceries and 1% back on everything else. Cardholders can redeem their rewards for any of the over 30 cryptocurrencies on the Gemini platform. END
 TITLE: What Is a Crypto Rewards Credit Card? CONTENT: The Pros and Cons of Crypto Rewards Credit Cards\n------------------------------------------------\nIf you're considering a crypto-earning credit card, it's important to go over both the benefits and drawbacks before you submit any applications.\n### Pros\n*   **It's an easy way to get into crypto.** If you're interested in getting in on crypto, but you don't want to risk any of your own money, you can start earning some with your everyday spending—there's no need to change anything about your finances to make it happen other than the card you use to make purchases.\n*   **You can earn money on your credit card rewards.** Cryptocurrencies are often used as a speculative investment, which means that you can actually earn money on top of the rewards you earn with your credit card. That's not an option with points and miles, and it only happens with cash back if you invest your reward earnings.\n### Cons\n*   **The value of cryptocurrency is volatile.** While you can get outsized value from your crypto rewards, you could also lose a lot of it if the value drops. For example, the price of Bitcoin surged to an all-time high of nearly $65,000 in early 2021 before it was cut in half in just over a month. If you had earned Bitcoin rewards at the top, you would've lost a good chunk of value in the short term.\n*   **You'll lack flexibility.** Some crypto credit cards don't give you many options to redeem your rewards. With the SoFi Credit Card, for instance, there are just two currencies from which you can choose, and the BlockFi Rewards Visa Signature Credit Card offers just one (Bitcoin). You can exchange your rewards for cash and use that to buy other cryptocurrencies, but that's another step you have to take to get what you want—and it'll involve added fees.\n*   **Cryptocurrency profits have tax implications.** Traditional credit card rewards typically aren't considered to be taxable income, and you won't be taxed on the crypto you earn either. But if you receive crypto rewards and trade them for a profit in the future, you'll be on the hook for taxes on the amount you gained. END
 TITLE: What Is a Crypto Rewards Credit Card? CONTENT: Is a Crypto-Earning Credit Card Right for Me?\n---------------------------------------------\nIf you're a crypto enthusiast, using a crypto-earning credit card for your everyday spending allows you to passively earn the digital currencies that you like. And if you're brand new to crypto, it can make it simpler to ease into it without a lot of risk.\nHowever, it's important to note that cryptocurrencies are extremely volatile. If you want a safer way to maintain the value of your credit card rewards, it may be better to stick with a credit card that earns cash back, points or miles.\nAlso, you'll want to make sure you consider which redemption options are available before you commit. While one card may offer a better rewards rate, it may limit which currencies you can earn.\nIf you're concerned about taxes, one way to minimize your liability is by holding on to your cryptocurrency for more than a year. If you do this, the gains you earn will be subject to the long-term capital gains tax, which is generally lower than the tax rate on ordinary income.\nIf you want to invest in crypto but don't want to do so with a credit card, you may instead consider simply buying some directly with cash you have on hand. You can also take advantage of crypto-earning savings accounts, which promise extremely high interest rates on certain currencies. END
 TITLE: What Is a Crypto Rewards Credit Card? CONTENT: How Does a Crypto Rewards Credit Card Affect Your Credit?\n---------------------------------------------------------\nBecause the only difference with these cards is the type of rewards you earn, they'll affect your credit score in the same way as a traditional rewards credit card. When you first apply, you'll be subject to a hard credit inquiry, which can ding your credit score a little, though the impact is temporary.\nThese cards typically require good or excellent credit, but you may be able to go through a preapproval process first, which can help you determine your odds of approval without hurting your credit score.\nOnce you open the account, the average age of your accounts will decrease, which can also impact your credit score. However, if you use the account regularly, keep your balance low relative to your credit limit and pay your bill on time every month, a crypto rewards card can help you build a positive credit history. END
 TITLE: What Is a Crypto Rewards Credit Card? CONTENT: Check Your Credit Before You Apply\n----------------------------------\nBecause you may need good or excellent credit to get approved, take the time to review your credit. You can get your credit reports from all three credit bureaus (Experian, TransUnion and Equifax) through AnnualCreditReport.com. It's also a good idea to check your credit score before submitting an application, which you can do for free with Experian. If your FICO® Score☉ is roughly 670 or below—a common threshold for good credit—consider taking some time to work on building your credit history more before you apply.\nReview your credit report to find out potential problem areas, and take steps to address them quickly. Continue to monitor your credit over time to track your progress, then apply once your score is in a better position to help you get approved. END
 TITLE: What Is Ethereum and How Does It Work? CONTENT: Ethereum uses a public blockchain network to power its platform. It's sometimes referred to as a global supercomputer, which can be a helpful way to think about the platform. The technology allows computers from all over the world to work together to power Ethereum.\nBitcoin and other cryptocurrencies use the same decentralized blockchain technology. However, Bitcoin's blockchain is mostly used to track transactions and account balances, which it does with a digital ledger. Ethereum builds on this idea and lets people create and run programs on its network.\nHere are a few key terms and concepts that are important for understanding how Ethereum works:\n*   **Ethereum miners**: Ethereum is powered by \"miners\" who set up their computers to perform complex math that powers and secures the network. The miners receive Ether for the use of their computer's processing power.\n*   **Gas costs**: Gas refers to how much you have to pay a miner to add information to the Ethereum blockchain. Paying more can result in your transaction being processed faster.\n*   **Ether**: Ether is Ethereum's primary and native cryptocurrency. There are other cryptocurrencies built on the Ethereum platform, but miners are paid in Ether.\n*   **Decentralized apps**: The apps that are built on the Ethereum network are called decentralized apps (dapps) because they aren't run by a single entity.\n*   **Smart contracts**: A smart contract isn't necessarily a contract in the legal sense. Instead, it's the name for programs that are stored and run on the Ethereum blockchain. People can create and upload new smart contracts to Ethereum or build new dapps using existing smart contracts.\n*   **Ethereum Virtual Machine**: The Ethereum Virtual Machine (EVM) is the environment that stores and executes smart contracts.\nEthereum is also undergoing an upgrade to Ethereum 2.0, or Eth2. The new system will attempt to address concerns about the current platform's slow network speeds, high gas fees and energy usage. END
 TITLE: What Is Ethereum and How Does It Work? CONTENT: Ethereum vs. Bitcoin: What's the Difference?\n--------------------------------------------\nEther and Bitcoin share similarities as they're both cryptocurrencies that you can use to purchase goods or services. Or, you may want to hold on to a cryptocurrency in the hope that it will increase in value. However, the Ethereum and Bitcoin systems differ greatly in many respects.\nBitcoin was created as an alternative to fiat currency—money minted and controlled by governments—while Ethereum is a platform.\nConsider the headline-grabbing non-fungible tokens (NFTs). An NFT is a unique token that represents ownership of a digital asset, such as a digital image or video. You never take physical possession of something purchased as an NFT, but that's not stopping people from paying astronomical prices for them. (In March, an NFT sold at auction for nearly $70 million.)\nMany NFTs are created and stored on the Ethereum blockchain. And, you can use Ethereum dapps to easily buy, sell and trade NFTs. Miners might receive Ether to help keep the decentralized network running and secure, but Ethereum is the entire ecosystem. END
 TITLE: What Is Ethereum and How Does It Work? CONTENT: Should I Buy Ether?\n-------------------\nYou may be interested in buying Ether as an investment or out of curiosity. However, as with other cryptocurrencies, Ether has experienced dramatic price swings in the past few years. While you might make a lot of money if the cost of Ether increases, an ill-timed sale could cost you.\nIf you can stomach the volatility and are interested in buying Ether, make sure you don't get caught in a scam. Also, be aware that you may have to pay taxes on the earnings if your cryptocurrencies increase in value before you use or sell them. END
 TITLE: What Is Ethereum and How Does It Work? CONTENT: How to Buy Ether\n----------------\nAs the second-largest cryptocurrency by market cap (behind Bitcoin), Ether can be purchased on many major cryptocurrency exchanges. Popular options include Binance.us, Coinbase and Gemini.\nTo purchase and possess Ether, you'll first need to set up a digital wallet. The safest option is to use a \"cold\" wallet that isn't connected to the internet, such as a thumb drive with your Ethereum account information. Some exchanges offer wallets or can store your cryptocurrencies for you. This is a more convenient option, but it puts your cryptocurrencies at risk if the exchange gets hacked or goes under.\nGenerally, the cheapest way to buy cryptocurrencies on an exchange is to transfer funds from your bank account or use a debit card. Some exchanges accept credit cards, but you may have to pay additional fees to both your card issuer and the exchange. END
 TITLE: What Is Ethereum and How Does It Work? CONTENT: Alternatives Ways to Invest\n---------------------------\nThe volatility of cryptocurrencies make them attractive to investors looking to cash in on fluctuating prices. However, many investors only hold a small portion of their investments in cryptocurrencies. Whether you're just starting or you're an experienced investor, diversifying your investments can help limit your risk.\nConsider the many ways you can invest your money beyond cryptocurrencies:\n*   **Stocks**: When you invest in company stocks, you're purchasing a portion of the business. As a partial owner, you can then benefit financially when the company's value increases. Some public companies also share their revenue with stockholders by issuing dividends.\n*   **Bonds**: A bond is a loan taken out by a corporation or government. When you purchase bonds, you're lending money and will then get repaid with interest. There are different types of bonds, and your return and risk can depend on the risk that the borrower won't be able to repay you.\n*   **Mutual funds and exchange-traded funds (ETFs)**: Mutual funds and ETFs can hold or track multiple investments, letting you quickly invest in different areas with a single purchase. For example, you could buy a fund that tracks the entire stock market or a fund that focuses on sustainable businesses. There are even funds that focus on cryptocurrencies and blockchain companies available to investors.\n*   **Retirement accounts**: Retirement accounts, such as IRAs and 401(k)s, can offer tax advantages to investors. An IRA or 401(k) isn't an investment in and of itself, but you can move money into one of these accounts and then invest the funds.\nNo matter the investment, there's always a risk that you'll lose money. High-yield savings accounts and certificates of deposit (CDs) can offer nearly risk-free ways to make money, but you'll usually need to take on more risk if you want higher returns. END
 TITLE: What Is Ethereum and How Does It Work? CONTENT: Will Buying Ether Impact Your Credit?\n-------------------------------------\nBuying and owning Ether won't directly impact your credit. Your credit reports don't contain any information about your savings, investments, income or net worth. And credit score calculations are based entirely on the information in one of your credit reports.\nHowever, buying Ether could indirectly cause a credit score impact if the purchase affects your finances in other ways. Perhaps you invest a lot of money in Ether hoping it will quickly rise in value, or because you believe in the long-term value of Ethereum as a platform. But then you're faced with an emergency expense and don't have enough cash on hand to cover it.\nIf the price of Ether has dropped, you might not want to sell right away. However, the alternative might be to miss bills—which could lead to fees and late payments that hurt your credit. Or, you might use a credit card. Even if you pay your credit card bills on time, the higher balance could accrue interest and hurt your credit scores by increasing your credit utilization ratio.\nYou can manage some of this risk by building up your emergency fund before making any investments. Also, look for ways to protect and build your credit while you're saving and investing. You can get a free copy of your Experian credit report, a free FICO® Score☉ and personalized recommendations for improving your credit for free with an Experian account. END
 TITLE: Can I Buy Cryptocurrency With a Credit Card? CONTENT: How Does Buying Cryptocurrency With a Credit Card Work?\n-------------------------------------------------------\nCryptocurrencies, including Bitcoin, Ethereum and Dogecoin, are typically bought and sold using online exchanges. Each exchange sets its own rules for the cryptocurrencies it offers, the types of payment it accepts and the fees it charges.\nSome exchanges, such as Binance.US, Coinbase and Gemini, don't allow credit card purchases. Others may accept cards, but only from people living in certain countries or states. Those that _do_ let you buy cryptocurrencies with a credit card, such as Coinmama, may only accept Mastercard and Visa cards. (Again, whether you can actually make the purchase also depends on your credit card issuer's policies.)\nBefore you can buy cryptocurrencies, you generally need to create an account on the exchange's website or mobile app. You may also need to verify your identity, which could require you to upload a picture of a government-issued photo ID. Once your account is verified, you may be able to purchase cryptocurrencies with a credit card or other funding source. END
 TITLE: Can I Buy Cryptocurrency With a Credit Card? CONTENT: Drawbacks of Buying Cryptocurrency With a Credit Card\n-----------------------------------------------------\nThere are many potential drawbacks to using a credit card to buy a cryptocurrency, and few—if any—benefits. The specifics can vary depending on your card's terms and the exchange, but consider:\n*   **The transaction may be considered a cash advance.** If your credit card issuer treats the transaction as a cash advance, you may have to pay a cash advance fee on each transaction and it may immediately accrue daily interest—often at a higher interest rate than purchases. Your card may also have a lower cash advance limit than credit limit.\n*   **Promotional interest rates won't necessarily apply.** Even if your card offers a 0% APR promotional rate on purchases, this generally won't apply to cash advances.\n*   **You may pay foreign exchange fees.** If the exchange or payment processor isn't based in the U.S., you may also have to pay a foreign transaction fee for each purchase.\n*   **You might not earn rewards.** Rewards credit cards also often won't give you rewards for cash-like purchases, including cash advances. The purchases also might not count toward intro bonus requirements.\nAdditionally, exchanges may charge different fees depending on how you add funds to your account or make a purchase. Often, a bank transfer can be less expensive than using a debit or credit card.\nYou'll also want to research an exchange before submitting any of your information. Some sites may be scams set up to gather your personal and payment information. While buying cryptocurrencies can be safe, even some well-known exchanges have abruptly shut down without returning customers' funds—what's known as an exit scam. END
 TITLE: Can I Buy Cryptocurrency With a Credit Card? CONTENT: Can You Earn Crypto Rewards With a Credit Card?\n-----------------------------------------------\nSimilar to how you can use a rewards credit card to earn cash back, miles or points, some companies are creating credit cards, debit cards and prepaid cards you can use to earn cryptocurrency rewards.\nHowever, many of these crypto cards are still being developed. For example, you can sign up for the waitlist for the BlockFi Bitcoin Rewards Credit Card, Coinbase Card and Gemini Credit CardTM. But you can't apply for the cards yet.\nThere are a few options currently available. The Crypto.com exchange has a prepaid card that you can use to earn rewards. However, you need to buy and hold on to its own cryptocurrency, Crypto.org Coins, for at least 180 days before you can qualify. The SoFi Credit Card is a more traditional cash back credit card that's open to new cardholders. You can earn 2% cash back on all eligible purchases and choose to redeem your rewards as crypto in a SoFi active invest account. END
 TITLE: Can I Buy Cryptocurrency With a Credit Card? CONTENT: Compare Cash Back Cards\n-----------------------\nAnother option if you want to use credit card rewards to buy cryptos is to get a cash back rewards card and transfer your rewards to your bank account. Then, use those funds to buy cryptocurrencies through an exchange. While it's not as direct, many exchanges charge no or low fees for bank transfers, and you won't have to worry about credit card cash advance fees.\nYou can quickly compare cash back card offers from our partners in the Experian CreditMatchTM marketplace. If you sign in, you can choose cards to create a side-by-side comparison and get matched with specific cards or offers based on your credit profile. END
 TITLE: Consumer Delinquencies Slow During Pandemic CONTENT: Experian Analyzes Delinquencies During Pandemic\n-----------------------------------------------\nAs part of our ongoing commitment to help consumers manage the impacts of COVID-19, Experian analyzed internal data to show how consumer delinquencies have changed in recent months. Our analysis is based on historic monthly consumer credit data, unless otherwise noted.\nThe data used for this research is based on a nationally representative sample of Experian's main consumer credit data. The data attributes and sample sizes for this research may not exactly match other Experian analyses, and thus a slight variance in some statistics may exist.\nAs Americans continue to manage the effects of the pandemic, the data included in our analysis will continue to evolve. The information included here represents only a momentary snapshot of consumer delinquencies. As time goes on—especially as certain economic stimulus and relief measures expire—these trends may change. We will continue to publish additional insights as newer data becomes available. END
 TITLE: Consumer Delinquencies Slow During Pandemic CONTENT: Delinquencies Down Overall Since Onset of Pandemic\n--------------------------------------------------\nTo measure delinquencies, we looked at the average number of instances in which a consumer had an account that was 30, 60 or 90 days delinquent in the past 12 months. Though the average number of instances per consumer is relatively low (less than one instance per person), the rate of decline over the past six months has shown that overall consumer delinquencies are trending down.\nBetween January 2020 and June 2020, average instances of consumer delinquencies across all delinquency ranges (30, 60 and 90 days) declined by at least 2.4%. The average number of 30-day delinquencies saw the greatest decrease, shrinking by 8.7% since January.\nMuch of this is likely due to consumer accommodations lenders have made during the pandemic, including the ones mandated by the Coronavirus Aid, Relief and Economic Security (CARES) Act. With more consumers in forbearance, or with payments deferred through some accommodation, the decline in new delinquencies is understandable, as repayment for many loans has been paused.\nSource: Experian data from January 2020 to June 2020 END
 TITLE: Consumer Delinquencies Slow During Pandemic CONTENT: Overall Delinquency in States With Top Populations\n--------------------------------------------------\nFor 30-day delinquencies between January and July 2020, the national trend held in nearly all states, with the exception of New York. Consumers in California reduced their average number of 30-day delinquent accounts by 8.2%—nearly the same rate observed across the country. Consumers in Texas, Florida and Pennsylvania outpaced the national rate, shrinking their average number of 30-day delinquent accounts by 9.7%, 10.9% and 11.7%, respectively.\nIn New York, consumers only saw a 1.8% decrease in their number of 30-day delinquencies during the same period, which may foreshadow what's to come for other states in months ahead. New York was one of the states hit hardest by the pandemic, and was one of the earliest to implement and sustain stay-at-home orders.\nAlternatively, Texas and Florida saw the intensity of COVID-19 spread months after New York's peak, and consumers in those states may have gained some ground pairing stimulus efforts with more relaxed stay-at-home guidance. Here's how it looked in the five most populous states:\nSource: Experian data from January 2020 to June 2020 END
 TITLE: Consumer Delinquencies Slow During Pandemic CONTENT: Mortgage Delinquency Saw Largest Decrease of Any Credit Type\n------------------------------------------------------------\nTo measure delinquency across individual credit types, we looked at the average number of trades ever 30, 60 or 90 days delinquent in the past 24 months. Again, these consumer averages may be minimal, but the difference between January and June highlight the change that occurred in the past six months.\nMortgage loans saw the greatest decline across the main credit products, with the average number of accounts 30 to 59 days past due decreasing by 4.7% between January 2020 and June 2020, according to Experian data. The number of accounts ever severely past due (90 or more days) saw the largest reduction, 6.2%.\nSource: Experian data from January 2020 to June 2020 END
 TITLE: Consumer Delinquencies Slow During Pandemic CONTENT: Credit Cards\n------------\nCredit cards saw the second greatest decline in delinquent accounts, with consumers decreasing the average number of accounts ever 30 to 59 days past due by 3.9% between January 2020 and June 2020, according to Experian data.\nSource: Experian data from January 2020 to June 2020 END
 TITLE: Consumer Delinquencies Slow During Pandemic CONTENT: Personal Loans\n--------------\nAmong personal loans, consumers saw their average number of accounts 30 to 59 days past due decline by 2.9%, according to Experian data. That's the third-largest reduction of 30-day delinquencies seen consumers across major debt types.\nSource: Experian data from January 2020 to June 2020 END
 TITLE: Consumer Delinquencies Slow During Pandemic CONTENT: Auto Loans\n----------\nAuto loan accounts also saw a decrease in delinquency, with consumers reducing their average number of trades ever 30 to 59 days delinquent by 1.9%, according to Experian data. Auto loans saw the smallest delinquency reduction of any credit type. Consumers' average number of past-due accounts decreased for the 30-day and 60-day delinquency periods, but increased for the 90-day delinquency period by 0.3% during the first six months of 2020.\nSource: Experian data from January 2020 to June 2020 END
 TITLE: Consumer Delinquencies Slow During Pandemic CONTENT: Delinquencies May Rise as Pandemic Aid Expires\n----------------------------------------------\nWhile it's impossible to know for sure, the $2 trillion CARES Act signed into law in March likely contributed to the recent decline in delinquency rates. This economic stimulus package included temporary financial assistance to U.S. consumers, among other things. A $1,200 one-time payment was distributed to many U.S. adults, and expanded unemployment benefits included an extra $600 per week for unemployed workers until this benefit expired in July. Executive action to extend unemployment payment increases was signed August 8, but payouts will be reduced.\nThe law also provided guidance for lenders on borrower accommodations for those that had been impacted by the pandemic. Included in this was a mandate that lenders and servicers of federally backed mortgages allow those impacted by COVID-19 to place their loans in forbearance. Additionally, most federal student loan collection was halted and the interim interest rate set to zero.\nThese mandates paused repayment for many borrowers (some automatically and some through an opt-in forbearance), offering much-needed breathing room to consumers managing their financial situation.\nAny repayment paused through the CARES Act also required that lenders report the accounts as current to the credit bureaus, as long as the account was up to date at the time the accommodation was made. This is likely contributing to the decline of delinquencies, as when a consumer's repayment is \"paused,\" they cannot become past due.\nBetween the supplemental cash from the stimulus payments and unemployment benefits, and the suspension (or option to suspend) some repayment, many consumers have avoided falling behind on debt—at least for now—and this could be driving the reduction in delinquencies.\nIt's important to remember that this data only represents a snapshot of how consumers are doing, and as the pandemic continues to impact local economies, and as aspects of the stimulus expire or are reduced, delinquencies throughout the U.S. could change. We will continue to monitor the data and publish relevant insights as conditions change in the coming months. END
 TITLE: COVID-19: Consumers Reduce Overall Debt During Pandemic CONTENT: COVID-19 Effects on Consumer Debt\n---------------------------------\nAs part of our ongoing commitment to helping consumers manage the impacts of COVID-19, Experian analyzed credit data to see how consumer debt has changed in recent months.\nOur analysis is based on monthly consumer credit data between January 2020 and May 2020 using a nationally representative sample of Experian's main consumer credit database. Credit score information is based on VantageScore® 3.0. The data attributes and sample sizes for this research may not exactly match other Experian analyses, and thus a slight variance in some statistics may exist.\nAs Americans continue to manage the effects of the pandemic, the data included in our analysis will continue to evolve. The information included here represents only a momentary snapshot of consumer finances. As time goes on—especially as aspects of economic stimulus and relief efforts expire—these trends may change. We will continue to publish additional insights as newer data becomes available. END
 TITLE: COVID-19: Consumers Reduce Overall Debt During Pandemic CONTENT: Most States See Decreases in Debt\n---------------------------------\nDespite widespread unemployment and loss of income during COVID-19, consumer debt balances have decreased over the past several months. From January 2020 to May 2020, consumers across the U.S. saw their total average debt dropped by 1%.\nAverage consumer debt totals have decreased in the majority of states since January 2020, according to Experian data. Consumer debt balances decreased in 30 states and increased everywhere else, including Washington, D.C. Some areas even recorded double-digit changes in the five-month period.\nSource: Experian END
 TITLE: COVID-19: Consumers Reduce Overall Debt During Pandemic CONTENT: Average Credit Card Debt Falls in All States\n--------------------------------------------\nConsumers in the U.S. decreased their card balances by 14% from May 2020 to January 2020. The reduction accounted for most of the change in overall debt and is significantly larger than the reduction seen during the same period in 2019, when credit card balances shrank by less than 3%. Nationally, the average credit card balance has dropped from $6,193 to $5,338 since January.\nUnlike total debt balances, which increased in some states, average credit card debt decreased in all 50 states and the District of Columbia, since the beginning of the year. Delaware saw the lowest rate of change, but still recorded a 5% decrease in the five-month period. The largest decrease occurred in Wyoming, where consumers shrank their credit card balances by 24%.\nSource: Experian END
 TITLE: COVID-19: Consumers Reduce Overall Debt During Pandemic CONTENT: Personal Loan Balances Show Biggest Increase\n--------------------------------------------\nAmong all debt categories, personal loan balances have increased the most since January 2020, according to Experian data. Overall, consumers' personal loan debt grew by 2% since the beginning of the year, with the average balance increasing from $15,965 to $16,257. END
 TITLE: COVID-19: Consumers Reduce Overall Debt During Pandemic CONTENT: Mortgage Balances Increase Since January\n----------------------------------------\nMortgage debt was the only other major credit type where consumers saw increased balances since January 2020. Consumers' average mortgage balance rose 1% from $202,480 to $203,986, according to Experian data. In contrast, home loan balances grew less than one-tenth of 1% between January and May of 2019. END
 TITLE: COVID-19: Consumers Reduce Overall Debt During Pandemic CONTENT: Despite Economic Downturn, Some Consumers See Financial Gains\n-------------------------------------------------------------\nCOVID-19's impact on the economy has cut deep, causing some economic indicators to drop to lows not seen since the Great Depression. But while millions lost their jobs and millions more had their incomes reduced, some have seen improvements in their debt levels and credit.\nThis isn't to say COVID has not caused widespread financial strain—it has. Much of the damage to consumer finances may not be apparent in credit reports and debt numbers, and instead has hit closer to home, impacting their ability to sustain everyday expenses.\nAs localities emerge from stay-at-home orders (albeit slowly and with several pauses around the country), consumer spending is likely to change again. Additional adjustments may also appear as aspects of government relief programs expire over the coming months. END
 TITLE: Derogatory Marks in Credit Reports Slow Amid Pandemic CONTENT: A Look at Consumer Derogatory Marks During COVID-19\n---------------------------------------------------\nAs part of our ongoing commitment to helping consumers manage the impacts of COVID-19, Experian analyzed consumer data to see if the number of accounts showing derogatory marks has changed in recent months. Our analysis is based on a nationally representative sample of Experian's main consumer credit data. To find the averages used here, we looked at the total number of times each event appears per consumer in our sample size.\nRead on for our insight and analysis of consumer credit reports have been affected since the onset of the pandemic. Here's an overview:\nSource: Experian END
 TITLE: Derogatory Marks in Credit Reports Slow Amid Pandemic CONTENT: Average Number of Bankruptcies in Credit Reports Has Declined in Recent Months\n------------------------------------------------------------------------------\nSince the beginning of the year, initial research shows that the number of consumer bankruptcies listed in credit reports has fallen, according to Experian data. From January 2020 to June 2020, the average number of bankruptcies listed in consumers' credit files decreased by 3%. This is a contrast to the same period last year, when the average number of bankruptcies increased by 2%.\nIn 2010, consumer bankruptcies peaked following the economic impacts of the Great Recession, according to data from the Administrative Office of the U.S. Courts. The process of filing for bankruptcy takes time and is typically a last resort for those who are struggling with high debt because of the substantial negative effect to credit scores. For that reason, it's still unclear if a similar trend will eventually emerge as a result of the current recession. END
 TITLE: Derogatory Marks in Credit Reports Slow Amid Pandemic CONTENT: Average Number of Collection Accounts Has Also Fallen\n-----------------------------------------------------\nWhen creditors fail to recoup a consumer's outstanding debt, they often turn to collection agencies to retrieve the funds. Collection agencies that take up the task of contacting the consumer to retrieve the debt receive a portion of any balance collected as compensation.\nFrom January 2020 to June 2020, the average number of collection accounts per consumer also decreased, shrinking by 4%, according to Experian data. The same period in 2019 saw a similar shift, when consumer collection accounts fell by 3%.\nThe 1 percentage point increase could be related to creditors granting consumers additional relief measures to help them during this time. With many accounts deferred, and many others under some form of creditor-issued modification due to the pandemic, accounts that previously would have been sent to collections may be experiencing a temporary reprieve.\nIn addition to any accommodations made by lenders to defer payment on accounts due to COVID-19, additional measures were taken to protect borrowers from collection agencies during the pandemic. The U.S. The Department of Education halted collection of federal student loans, and some states barred debt collectors from garnishing stimulus payment money even if they legally would have otherwise been able to.\nWhen an account is sent to a collection agency, a note of the collection account is listed in a credit report and remains a part of the file for seven years. Collection accounts are considered derogatory marks and can severely impact consumers' credit scores. END
 TITLE: Derogatory Marks in Credit Reports Slow Amid Pandemic CONTENT: Average Number of Charge-Offs Is up 2%\n--------------------------------------\nThe average number of unsatisfied charge-off accounts consumers held in June 2020 was up 2% from January 2020, according to Experian data. This growth rate mirrors the growth rate seen in the same period in 2019, and shows that lenders have not shifted their behavior drastically when it comes to closing accounts that are past due.\nCharge-offs appear in credit reports after a lender tries—but fails—to obtain an outstanding debt and decides to close a consumer's account without ever satisfying the balance. Charge-offs often indicate that a consumer's account was delinquent for at least six months. Unsatisfied charge-offs are often sent to collections agencies. END
 TITLE: Derogatory Marks in Credit Reports Slow Amid Pandemic CONTENT: Average Number of Repossessions Is Down 2%\n------------------------------------------\nSince the pandemic began, vehicle repossessions have declined by 2%, according to Experian data. The average number of consumer repossessions shrank by the same amount (2%) during the same period in 2019. This stability in the face of an economic downturn could be due to economic stimulus helping consumers keep up with their auto loans, creditors pausing their repossession efforts, state moratoriums placed on vehicle repossession or other factors.\nAlong with repossessions decreasing during this time, overall auto loan delinquency has gone down since the onset of the pandemic. Consumers have reduced their average number of auto loan accounts ever 30 to 59 days delinquent by 1.9%.\nA repossession occurs after a consumer goes into default and a lender reclaims the vehicle to recoup outstanding debt. Repossessions are considered derogatory marks, and remain in a credit report for seven years. END
 TITLE: Derogatory Marks in Credit Reports Slow Amid Pandemic CONTENT: CARES Act Protections May Have Slowed Derogatory Accounts\n---------------------------------------------------------\nOnce it became clear consumers would need financial assistance during the COVID-19 pandemic, a $2 trillion economic stimulus package aimed at dampening the impacts of widespread unemployment and reduced economic activity went into effect. The Coronavirus Aid, Relief and Economic Security (CARES) Act, among other things, gave consumers a temporary cash infusion, laid out protections for those financially impacted by the pandemic (such as by suspending foreclosures), and increased unemployment benefit payouts.\nThese protections—as well as accommodations made voluntarily by creditors—seem to have been initially effective in protecting consumer credit profiles from delinquency and default. In fact, with these programs in place, some consumers who might have normally entered default may have been sheltered from drastic changes to their financial accounts. This trend may change as aspects of the pandemic relief package continue to expire—increased unemployment benefits payouts expired at the end of July and weren't fully replaced, for instance.\nAs Americans continue to manage the effects of the pandemic, the data included in our analysis will continue to evolve. The information included here represents only a momentary snapshot of consumers' finances. As time goes on, these trends may change. We will continue to publish additional insights as newer data becomes available. END
 TITLE: Consumer Finances Then and Now: The Great Recession vs. 2020 CONTENT: As part of our ongoing commitment to help consumers manage the impacts of COVID-19, Experian analyzed internal data to show what consumer finances looked like when they entered the Great Recession compared with how they looked at the onset of the current economic downturn. Our analysis is based on a nationally representative sample of Experian's main consumer credit data.\nTo see how consumer finances differed during our current recession and the Great Recession, we looked at debt and credit data from the first four months of each period.\nFor the Great Recession, we analyzed the change in consumer finances from December 2007—the beginning of that recession, according to NBER—to March 2008. To mirror the comparison for the current recession, we compared records from February 2020 to May 2020.\nIn 2008, U.S. consumers carried a higher average debt balance in the month prior to the recession's onset than they did in the month before this year's recession began, according to Experian data. Consumer delinquencies were also higher and average credit scores lower at the start of the Great Recession than they were coming into the current economic downturn.\nIn the first three months of 2020, consumers on average kept debt increases minimal, improved their average credit scores and decreased delinquencies across all debt. In 2008, consumers saw debt spike significantly, improved their scores by only two points and reduced delinquencies at a slower rate than 2020. END
 TITLE: Consumer Finances Then and Now: The Great Recession vs. 2020 CONTENT: Average Credit Score Higher in 2020\n-----------------------------------\nCredit scores are one of many indicators reflecting consumers' financial health—specifically how they are managing debt.\nThe average VantageScore® in February 2020 was 681, or 13 points higher than the average score when the Great Recession began, according to Experian data. Additionally, within the first three months of our current economic downturn, consumers raised their scores by an average of 7 points. From December 2007 to March 2008, the average consumer VantageScore increased by 2 points.\nSource: Experian END
 TITLE: Consumer Finances Then and Now: The Great Recession vs. 2020 CONTENT: Consumer Debt Spiked in Early 2008\n----------------------------------\nThe change in consumers' average debt totals during the first three months of each economic downturn reveals a stark contrast. In the first three months of the Great Recession, consumers increased their average total debt by $3,843, or 4%, whereas debt balances during the same period in 2020 grew by an average of just $195, or 0.2%.\nConsumers carried more overall debt going into the recession in December 2007, with an average of $90,576 per person. In February 2020, consumers' total average debt was slightly lower, at $89,590.\nSource: Experian END
 TITLE: Consumer Finances Then and Now: The Great Recession vs. 2020 CONTENT: Consumers Reduce Credit Utilization in Recessions' Early Days\n-------------------------------------------------------------\nGoing into the Great Recession, the average credit utilization ratio (the percentage of available revolving credit in use) was 27%, compared with 29% in February 2020. Americans cut their utilization by 4% between December 2007 and March 2008—but during the first months of the current downturn, they reduced their utilization by a substantial 13%. This shows that while the economic downturn was gaining steam, consumers worked to pay down their credit card balances. A lower credit utilization ratio is better for credit scores; those with the highest credit scores commonly have overall utilization ratios in the low single digit percentages.\nSource: Experian END
 TITLE: Consumer Finances Then and Now: The Great Recession vs. 2020 CONTENT: Delinquencies Show Greater Drop in 2020\n---------------------------------------\nOverall, consumers had more instances of 30-day delinquencies (late payments) in December 2007 than they did at the onset of the current recession. This is in line with the overall economic environment at that time, as part of the Great Recession included a widespread struggle to keep up with rising interest and expensive mortgage loans.\nConsumers also reduced their number of delinquencies at a higher rate in 2020 compared with the same period in 2008.\nSource: Experian END
 TITLE: Consumer Finances Then and Now: The Great Recession vs. 2020 CONTENT: Consumers May Be Better Poised for Current Financial Crisis\n-----------------------------------------------------------\nWhile it's impossible to predict how consumers will continue to manage the current economic downturn, the recession's early months indicate a focus on their personal finances.\nAcross nearly all indicators—including total debt, utilization, credit score and delinquency—consumers improved their debt and credit positions more in the first three months of the current recession than during the most recent downturn. In the case of total average debt, consumers in 2020 were able to limit the growth of their overall debt balance, while consumers during the early months of the Great Recession saw balances spike by 4%.\nMuch of this may be attributable to the passage of the Coronavirus Aid, Relief and Economic Security (CARES) Act, a $2 trillion stimulus law that issued a one-time $1,200 payment to many Americans and widely expanded unemployment benefits.\nThough the current recession's initial three months of consumer debt and credit data paint a positive picture of consumer finances, unemployment has spiked to historic highs in 2020. As income declines and stimulus aid continues to lapse, consumers' finances may change as people seek ways to cover their expenses.\nAs Americans continue to manage the effects of the pandemic, the data included in our analysis will continue to evolve. The information included here represents only a momentary snapshot of consumer finances. As time goes on—especially as certain economic stimulus and relief measures expire—these trends may change. We will continue to publish additional insights as newer data becomes available.\n**Note**: The data attributes and sample sizes for this research may not exactly match other Experian analyses, and thus a slight variance in some statistics may exist. END
 TITLE: COVID-19: Credit Utilization Drops as Consumers Cut Spending CONTENT: Research and Analysis on the Impact of COVID-19\n-----------------------------------------------\nAs part of our ongoing commitment to helping consumers manage the impacts of COVID-19, Experian analyzed internal data to find out how consumer credit utilization has changed in recent months. The analysis is based on monthly consumer credit data between January 2020 and May 2020.\nThe data used for this research is based on a nationally representative sample of Experian's main consumer credit data; credit score data is based on VantageScore 3.0. The data attributes and sample sizes for this research may not exactly match other Experian analyses, and thus a slight variance in some statistics may exist.\nAs Americans continue to manage the effects of the pandemic, the data included in our analysis will continue to evolve. The information included here represents only a momentary snapshot of consumer finances. As time goes on—especially as aspects of economic stimulus and relief efforts expire—these trends may change. We will continue to publish additional insights as newer data becomes available. END
 TITLE: COVID-19: Credit Utilization Drops as Consumers Cut Spending CONTENT: Overall Credit Utilization Levels Down Since January\n----------------------------------------------------\nSince the onset of the pandemic, consumers have shifted their credit usage, resulting in plummeting utilization rates between January and May 2020. This is a major difference from this same period in 2019, when the utilization rate decreases were a third of those seen in 2020.\nSource: Experian\nSince credit utilization is the second most important aspect of credit scores, it's not surprising to see that average credit scores have gone up as utilization has fallen.\nSource: Experian END
 TITLE: COVID-19: Credit Utilization Drops as Consumers Cut Spending CONTENT: Utilization Ratios See Consistent Double-Digit Decreases Across All States\n--------------------------------------------------------------------------\nAcross the country, consumer credit utilization has seen double-digit decreases in all states. This is in line with consumer credit card debt, which also decreased in each state.\nNorth Dakota saw the biggest decrease in average utilization, with credit utilization ratios dropping by 22% between January and May 2020. Consumers in Hawaii and Montana both saw 10% decreases in their average utilization during this same period, which was the minimum change among states.\nSource: Experian END
 TITLE: COVID-19: Credit Utilization Drops as Consumers Cut Spending CONTENT: Top and Bottom Credit Score Ranges See Largest Utilization Decreases\n--------------------------------------------------------------------\nConsumers with top-tier credit scores saw the largest decrease in credit utilization since January, according to Experian data. People with scores between 781 and 850, who already had the lowest credit utilization among score ranges, reduced their average utilization ratio by 22%. Consumers in the lowest score range saw the second-biggest decrease in utilization despite carrying the highest average utilization among scoring ranges.\nSource: Experian END
 TITLE: COVID-19: Credit Utilization Drops as Consumers Cut Spending CONTENT: Generation Z Records Largest Change in Utilization\n--------------------------------------------------\nSince January, credit utilization saw the greatest changes across younger age groups, according to Experian data. Members of the youngest group of U.S. adults, Generation Z, had the biggest decrease in average utilization ratio—bringing their utilization, which was previously higher than every generation, even with millennials and lower than Generation X.\nSource: Experian END
 TITLE: COVID-19: Credit Utilization Drops as Consumers Cut Spending CONTENT: Shift in Utilization Shows Slowed Reliance on Revolving Credit\n--------------------------------------------------------------\nUtilization rates are based on consumers' revolving credit balances and can shift depending on how they use revolving debt over a given period of time. Though spending is always changing and utilization remains in flux, large shifts in utilization like the ones seen in recent months signify a distinct departure in consumer credit behavior. This change is confirmed when looking at consumer credit card balances, and the benefit can be seen when looking at the average credit score in the nation. END
 TITLE: Survey: How Consumers Are Reacting to COVID-19 CONTENT: Concerns About Physical and Financial Health Are Top of Mind\n------------------------------------------------------------\nThe impacts of COVID-19 have permeated many aspects of daily life, and consumers are understandably worried most about their own health and well-being and that of their family members. Some 82% of people surveyed said they were worried COVID-19 would impact their family's health, and 77% were worried about their own health.\nAside from health concerns, many Americans fear COVID-19's impact on the economy and their finances. More than two-thirds—69%—of respondents say they are worried about their personal finances; 66% are worried about the economy; 55% are worried about their jobs; and 47% are concerned for their credit. END
 TITLE: Survey: How Consumers Are Reacting to COVID-19 CONTENT: Many Consumers Worry About Their Job Security\n---------------------------------------------\nOverall, 61% of those surveyed feel the future of their job is up in the air, underscoring the uncertainty these unprecedented times have brought. Unemployment filings recently hit a record high, with more than 16 million people filing jobless claims in the last week of March and the first two weeks of April.\nOf the consumers Experian surveyed, 17% reported being unemployed, while 62% said they were currently working. Of those who were unemployed, nearly a quarter (22%) said that it was a result of the COVID-19 pandemic. And though the majority of Americans still have a job, many respondents reported that some aspect of their jobs had been impacted due to COVID-19:\n*   41% had experienced a reduction in work hours\n*   15% said their salary was reduced\n*   5% said they had lost some or all of their benefits\nAs COVID-19 continues to impact jobs, wages and benefits, incomes have been slashed and households are feeling the burden. More than three-quarters—78%—of respondents said their household income had been negatively impacted by COVID-19. END
 TITLE: Survey: How Consumers Are Reacting to COVID-19 CONTENT: More Than a Third of Americans May Have Trouble Paying Their Bills\n------------------------------------------------------------------\nAs incomes are reduced and jobs eliminated, 63% of those surveyed said they are more worried now about their personal finances than they were before the crisis began. When it comes to having enough money to spend, 62% said they are worried about their disposable income.\nBeyond having enough money for essential needs—such as housing, food and medicine—debt is a concern for many, with 59% of respondents saying they were worried about paying it down. When asked which types of debt they were more concerned about being able to pay off, personal loan and credit card debt topped the list.\nBills, too, are a concern. Asked whether they thought they'd be able to cover their bills in the next three months, 15% of respondents said no and 23% said they were unsure.\nOf those who said they were unsure, utility, credit cards and rent were the top three items they were concerned about. Those top categories were followed by auto loans, mortgage payments and student loans. END
 TITLE: Survey: How Consumers Are Reacting to COVID-19 CONTENT: Three-Quarters of Consumers May Contact Creditors for Repayment Relief\n----------------------------------------------------------------------\nAs more Americans struggle to maintain their regular incomes due to job loss or reduced hours, creditors and service providers have begun rolling out relief options to help those affected by the ongoing pandemic. When asked, 28% of respondents said they had already contacted their lender or service provider to see if they could make a special payment arrangement. Another 49% said they hadn't yet contacted anyone, but were planning to reach out. The remaining 23% said they had not reached out to anyone and were not planning to do so.\nAmong the portion of those who had already contacted their creditor or service provider, 69% said they were granted an acceptable repayment option for some or all of their bills. Only 15% reported being denied this relief, but 16% either didn't know or were waiting to hear back. END
 TITLE: Survey: How Consumers Are Reacting to COVID-19 CONTENT: Some Americans Plan to Use Savings to Cover Debt Payments\n---------------------------------------------------------\nWhile many consumers still have income they plan to use to pay down their debt (67% reported planning to pay their bills with their monthly income), 1 in 3 respondents said they will have to rely on savings to make their debt payments in coming months.\nAnother 13% say they will use credit cards; 13% say they will use unemployment benefits; and 5% plan to use an emergency loan to make their debt payments.\nWhen asked if they would be opening a new line of credit in the next six months, 21% of respondents said they planned to apply for a new credit card, 12% planned to apply for a personal loan and 8% said they planned to apply for an auto loan. Others said they planned to apply for a mortgage (7%), small business loan (5%), home equity line of credit (3%). Most survey respondents (67%) said they did not plan to apply for any of the above. END
 TITLE: Survey: How Consumers Are Reacting to COVID-19 CONTENT: Helpful Resources to Manage COVID-19\n------------------------------------\nIn addition to government support, many companies have issued guidance on how they are helping consumers during this difficult time. If your finances have been impacted by COVID-19, the following resources may be able to help you find relief.\n*   Protecting Your Credit During the COVID-19 Crisis\n*   COVID-19 Credit Card and Debt Relief\n*   Emergency Loans: Where to Get the Best One\n*   New Unemployment Benefits Under CARES Act Stimulus\n*   Best Ways to Use Your Stimulus Payment\n*   How the CARES Act Stimulus Affects Student Loans END
 TITLE: Top Credit Scores in Los Angeles by Neighborhood CONTENT: Bel-Air Has the Highest Credit Score\n------------------------------------\nThe well-known neighborhood located in the foothills of the Santa Monica Mountains has the highest average credit score in Los Angeles, averaging 754. That's 51 points higher than the national average and 48 points higher than the average for the West Coast city. END
 TITLE: Top Credit Scores in Los Angeles by Neighborhood CONTENT: Despite Income, Credit Scores Mostly \"Good\" or Better\n-----------------------------------------------------\nWhile there is some correlation between income, debt and credit scores, having a high income isn't a requirement to have a high credit score.\nAll things considered, almost all of the neighborhoods listed in this ranking have an average credit score at or above 670, which is considered \"good\" by lenders. This means that despite variances in income and debt levels, residents in these neighborhoods are displaying healthy borrowing habits by paying bills on time, maintaining a low credit utilization ratio and avoiding bankruptcy.\nBorrowers with good credit scores are better equipped to secure loans and credit cards with lower interest rates and good terms, which opens them up to more opportunities such as owning homes and buying cars. END
 TITLE: At What Age Can You Expect Your Best FICO<sup>®<\/sup> Score? CONTENT: Average FICO® Scores Rise Steadily With Age\n-------------------------------------------\nAs of Q2 2019, consumers in their 20s have the lowest average FICO® Score, at 660. Building credit—either from scratch or by using strategies like joining a parent's credit card as an authorized user—often starts in earnest in a consumer's 20s. The Credit CARD Act of 2009 prevents consumers under 21 from opening their own credit card accounts without either a cosigner or proof of independent income.\nBut a score of 660 is a solid start: It's not far off from good credit, which starts at 670, according to the FICO® scoring model. From there, each age group's average score increases. The average FICO® Score among age groups peaks at 757, for consumers in their 80s.\nAdditionally, all age groups but one (those ages 90 to 99) have higher average FICO® Scores than the equivalent age groups did in Q2 2015. Average incomes in all age groups increased between Q2 2015 and Q2 2019, which could be a contributor.\nSource: Experian. \\*In Q2 2015, data was only available for ages 23 to 29; we compared to the same age range in Q2 2019. END
 TITLE: At What Age Can You Expect Your Best FICO<sup>®<\/sup> Score? CONTENT: Consumers' FICO® Scores Increase Most From Their 50s to 60s\n-----------------------------------------------------------\nThe largest jump in FICO® Scores happens from consumers' 50s to 60s. The average FICO® Score for those ages 50 to 59 is 703 as of Q2 2019, compared with 733 among those ages 60 to 69.\nAverage estimated household income also peaks when consumers are in their 50s, reaching a high of $83,467 in Q2 2019—up from $79,390 in Q2 2015. That may make it more possible for those with debt to pay it off, contributing to an increase in average FICO® Scores during this time. Credit utilization, or the amount of credit a consumer uses relative to their overall credit limit, has the second-largest impact on credit scores, just after payment history. END
 TITLE: At What Age Can You Expect Your Best FICO<sup>®<\/sup> Score? CONTENT: Credit Card Debt More Than Doubles From Consumers' 20s to 30s\n-------------------------------------------------------------\nIn contrast, average FICO® Scores don't rise much from the time consumers are in their 20s to their 30s, increasing just three points, from 669 to 672. Consumers may still be building credit during those years; another contributor could be that once those in their 20s gain access to credit cards, they use them. High credit utilization can be a drag on credit scores, but late payments have an even larger effect. Using more credit may make it harder to make timely payments and pay off balances in full.\nConsumers in their 30s carry more than double the credit card debt 20-somethings do: An average $5,563 compared with $2,770 among those in their 20s as of Q2 2019. Average retail credit card debt also nearly doubles in those years, from $660 in consumers' 20s to $1,187 in their 30s.\nAn increase in credit card debt is also an overall trend: Nationwide, Q2 total credit card debt grew 6% from 2018 to 2019, according to Experian data. END
 TITLE: At What Age Can You Expect Your Best FICO<sup>®<\/sup> Score? CONTENT: Consumers Reach Peak Debt Levels in Their 40s\n---------------------------------------------\nAverage FICO® Scores jump slightly more—11 points—from consumers' 30s into their 40s. But debt levels also rise during this time, with average retail credit card, student loan, auto loan and mortgage balances all reaching their peak levels among 40-somethings. The only outliers are non-retail credit card balances—which are highest among those in their 50s—and personal loans, which peak in consumers' 60s.\nStarting in their 50s, however, the average consumer starts reducing their debt across most categories. Credit scores also start rising at a faster pace. The average FICO® Score among 50- to 59-year-olds is 20 points higher than it is among 40- to 49-year-olds. Consumers in their 60s have scores 30 points higher than those in their 50s. And scores among those in their 70s are 21 points higher than among those in their 60s. END
 TITLE: At What Age Can You Expect Your Best FICO<sup>®<\/sup> Score? CONTENT: Consumer FICO® Scores by Age Range\n----------------------------------\n### Consumers in Their 20s\nAverage FICO® Scores as of Q2 2019 among those in their 20s decrease from a high of 681 at age 20 to 660 at age 29. This age group is one of two age ranges, the other being consumers in their 90s, that shows a score drop over the course of 10 years. But from age 20 to age 90, each age group sees an increase in average FICO® Score. END
 TITLE: Routing Number vs. Account Number: What’s the Difference? CONTENT: Importance of Routing and Account Numbers\n-----------------------------------------\nBanks and credit unions manage tens or hundreds of thousands, and even millions, of accounts. When transferring money to or from your bank account, your routing number and account number are both integral in making sure the money is deposited to or withdrawn from the correct account.\nYou'll probably need to have these numbers on hand when setting up direct deposit, bill pay and other types of bank transfers. Wire transfers, on the other hand, typically use a different number than your routing number, and you can get that number directly from your bank or credit union. END
 TITLE: Routing Number vs. Account Number: What’s the Difference? CONTENT: A routing number is a nine-digit number that identifies the bank or credit union where an account is held. These numbers are also commonly referred to as ABA routing numbers, referring to the American Bankers Association, which assigns them.\nRouting numbers are only used within the U.S. and show that the financial institution has an account with the Federal Reserve and is chartered at either the federal or state level.\nIn most cases, banks and credit unions only have one routing number. But some large national and multinational banks may have multiple routing numbers based on where you live or hold the account. END
 TITLE: Routing Number vs. Account Number: What’s the Difference? CONTENT: What Is an Account Number?\n--------------------------\nWhile a routing number identifies the bank or credit union that holds your account, an account number identifies your specific account among the many others that the financial institution holds.\nFor example, if you have more than one checking account or a checking and a savings account with the same institution, the routing numbers will likely be the same, but the account numbers will be different.\nBecause your account number effectively provides access to the funds in your account, it's critical that you keep it safe. END
 TITLE: Routing Number vs. Account Number: What’s the Difference? CONTENT: How to Find Your Routing and Account Numbers\n--------------------------------------------\nYou can find your account and routing numbers at the bottom left-hand side of paper checks that are tied to your checking account, by logging in to your online banking account or by asking a representative of the financial institution.\nSince your financial institution's routing number isn't unique to your account, you may be able to simply find it online—just make sure the website you use is the one owned by your bank or credit union. Other websites may gather routing number information for several financial institutions to make things more convenient, but it's best to get the number directly from the institution.\nThe numbers on the bottom of each of your checks are printed in magnetic ink using what's called magnetic ink character recognition (MICR). The MICR line makes it easier for banks and credit unions to process checks quickly.\nWhen you are ready to provide your routing and account numbers for a bank-related transaction, double-check your sources to make sure you get the numbers exactly correct. If you're off by even a single digit, the transaction won't complete. In some cases, you may be required to enter your account number twice to verify the correct information, which can help avoid potential errors. END
 TITLE: Managing Your Finances Post-COVID: Habits to Start, Keep and Drop CONTENT: Habits to Start\n---------------\nTo prepare for life going forward after the pandemic and keep your finances on track for the long haul, here are some habits to start if you're not doing them already. END
 TITLE: Managing Your Finances Post-COVID: Habits to Start, Keep and Drop CONTENT: Financial Fitness for the Future\n--------------------------------\nCOVID-19 forced us to think carefully about what really matters and where our money can make the most difference. The memories of the past year may fade in time, but many of the financial habits we learned from it are worth keeping. As the world returns to normal, maintaining a mindful attitude toward your spending will help you manage money more intentionally, enhancing both your own life and the lives of others. END
 TITLE: What Are the Financial Perks of Getting Married? CONTENT: Simplify Your Life With Joint Bank Accounts\n-------------------------------------------\nMarriage isn't always just a legal and romantic union—for many couples, it means uniting financial lives as well. This move isn't for everyone (some may want to maintain their financial independence), but it's not uncommon for couples to join their accounts once they tie the knot. The decision can mean a simpler budget as you combine financial obligations and tackle them as a team—with combined incomes.\nHaving a joint bank account you pay all your expenses from can be a great way to cut down on financial squabbles and have more household accountability for where money goes. There are several ways you may choose to manage the account as a couple. You might, for instance, deposit your paychecks into one checking account you use to manage your bills while maintaining a joint savings account for long-term goals like homeownership. Or, you might keep your individual checking accounts and transfer a certain amount of money every month into an account you use for bills, and into another one you both use for savings.\nJoining financial lives can result in tough conversations if there's an income disparity, or if one partner has misgivings about doing so. Take it slow, and try not to make any hasty decisions or put your partner in an awkward position. With or without shared accounts, budget and plan for the future together so that neither debt nor retirement can throw your marriage bliss off course. Remember, you have your whole life ahead of you. END
 TITLE: What Are the Financial Perks of Getting Married? CONTENT: Enjoy Increased Borrowing Power\n-------------------------------\nGetting married and combining your bank accounts won't wed individual debts you brought into the marriage—those stay separate in your own names (and on your own credit reports). But when it comes to new debt you might want to take on as a couple, lenders consider both married partners' credit in their loan applications. If one spouse has excellent credit, it can improve borrowing opportunities for the couple, even if the other has a less-than-perfect history. The legal ties of marriage don't directly affect your individual credit scores or reports, however, no matter how much debt either partner has or doesn't have.\nDebts you acquire together after marrying—whether by cosigning for each other or opening a new account together—will belong to both of you. If you live in a community property state, both spouses are responsible for debt taken on while married, no matter which partner borrowed it. The community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin; Alaska gives the option of community property.\nWhile any debt either partner enters the marriage with remains the responsibility of the borrower, your financial history can affect your financial future as a couple. Be sure to check in regularly to avoid any financial surprises down the road. END
 TITLE: What Are the Financial Perks of Getting Married? CONTENT: File Together for Income Tax Benefits\n-------------------------------------\nTaxes can be as complex as maintaining a successful marriage, and those taxes get doubly complicated when it comes to filing as a married couple. Whether tax season rolls around before, during or after your honeymoon phase, you may see either an annual bonus or a penalty.\nDepending on your individual tax situations, you and your spouse may owe less (or get back more) filing as a couple than you would if you filed separately. This often occurs when a couple has a large difference in their income levels. On the other hand, a couple with similar income levels may end up paying more in taxes if they choose to file a joint return than they would have filing individually.\nYou and your spouse can still file your taxes separately if you worry about tax penalties, but it could be worth it to first go over your options with a tax professional. After all, some of the best tax breaks and credits for married couples are only available if you file together. END
 TITLE: What Are the Financial Perks of Getting Married? CONTENT: Gain Social Security Benefits\n-----------------------------\nWhen you promise to care for each other in sickness and in health, you become entitled to certain perks through Social Security. Social Security spousal benefits, available for couples who qualify, allow one partner to collect up to 50% of the other's Social Security benefits.\nSocial Security survivor benefits also kick in if the worst should happen and one spouse passes away. When one spouse dies, the surviving spouse is eligible to receive their benefit payment when they retire. Generally, the surviving spouse needs to be at least 60 years of age to collect survivor benefits, with full benefits taking effect once the widow or widower reaches full retirement age. END
 TITLE: What Are the Financial Perks of Getting Married? CONTENT: Consider Combining Health Insurance\n-----------------------------------\nNot every employer allows you to add a spouse to your insurance, but combining insurance can be beneficial when one of your insurance plans offers significantly more coverage, a lower cost or both.\nIf you go this route, you may be subject to some additional costs on the insurance plan to account for your spouse's inclusion; you can weigh this against the cost of keeping your own separate health plans. If you have a family, all your medical spending counts toward your insurance maximum, so you might be able to financially justify the spousal surcharge, rather than paying two separate insurance premiums. Compare the details of your coverage to see if you can save on expenses by merging. END
 TITLE: What Are the Financial Perks of Getting Married? CONTENT: Investing for Retirement\n------------------------\nAn individual retirement account (IRA), and the employer-backed 401(k) are excellent ways to set yourself (and your spouse) up for later in life. These allow you to invest and grow your money to pay for retirement—essentially, investing in your IRA means setting up a future income for yourself. With a spousal IRA, one partner can put their own earnings toward an IRA in the other's name, which can be a great way for couples to plan ahead if one spouse doesn't bring in much income.\nIf you max out your 401(k)s and IRAs, you and your partner can review next steps with an investment advisor. They can set you up with options like joint investment accounts—which could be taxable but still contribute to your overall retirement savings. END
 TITLE: What Are the Financial Perks of Getting Married? CONTENT: Plan Your Estate as a Married Couple\n------------------------------------\nPlanning your estate—meaning, arranging how your assets will be passed down after one or both of you pass away—can make sure your budding family stays financially protected should the worst happen. Your estate plan should include a will, a living trust, medical power of attorney and financial power of attorney. Your estate includes your assets as well as any sentimental items you hope to pass down. Even if you're in your 20s, it's not too early to create an estate plan.\nMarried couples as of 2021 enjoy a tax exemption of $23.4 million on their estate—which means, upon death, most spouses inherit their partner's estate tax-free. END
 TITLE: COVID-19 Impact: Changes to Consumer Debt and Credit CONTENT: COVID-19 Effects on Consumer Finances\n-------------------------------------\nAs part of our ongoing commitment to help consumers manage the impacts of COVID-19, Experian analyzed internal and external data to show how consumer finances have changed in recent months. Our analysis is based on historic monthly consumer credit data, unless otherwise noted.\nThe data used for this research is based on a nationally representative sample of Experian's main consumer credit data. Credit score data is based on VantageScore 3.0. The data attributes and sample sizes for this research may not exactly match other Experian analyses, and thus a slight variance in some statistics may exist.\nAs Americans continue to manage the effects of the pandemic, the data included in our analysis will continue to evolve. The information included here represents only a momentary snapshot of consumer finances. As time goes on—especially as certain economic stimulus and relief measures expire—these trends may change. We will continue to publish additional insights as newer data becomes available. END
 TITLE: COVID-19 Impact: Changes to Consumer Debt and Credit CONTENT: Changes in Consumer Finance and Credit Behavior\n-----------------------------------------------\nTo provide a quick and easy-to-understand overview of how consumers in each state have been impacted by COVID-19, this map shows how economic metrics including how consumer debt balances and credit scores have changed since the same time last year. Annual comparisons are based on May 2020 data (the most recent available) and are compared with the equivalent data from the same month in the prior year.\nWithin the U.S., our analysis showed no statistically significant correlation between state positive cases and changes in consumer debt or credit scores. Similarly, there is no immediate relationship between states with early stay-at-home orders, and their change in debt or credit.\nSource: Experian and VantageScore data, May 2020. Stay-at-home order dates from Kaiser Family Foundation. END
 TITLE: COVID-19 Impact: Changes to Consumer Debt and Credit CONTENT: States With the Largest Increase in Unemployment\n------------------------------------------------\nUnemployment and loss of income can wreak havoc on credit and finances—especially for the tens of millions of people who have little or no savings they can tap to cover an emergency. The inability to cover existing debt payments can bring down credit scores, and loss of income generally means making sacrifices that can greatly impact someone's everyday life.\nIn an effort to contain the outbreak's economic impact, Congress passed the Coronavirus Aid, Relief and Economic Security (CARES) Act in March. Among other things, the CARES Act significantly expanded unemployment benefits and gave a one-time stimulus payment to eligible Americans. This aid was distributed to soften the impact unemployment and loss of income would have on the nation.\nThough it seems logical that debt and credit would be most impacted in states with high rates of unemployment, our analysis found no strong correlation between a state's increase in unemployment rate and the growth or decline of debt or credit.\nSource: Experian and VantageScore data from May 2019 to May 2020. Unemployment data is from the Bureau of Labor Statistics from May 2019 to May 2020. END
 TITLE: COVID-19 Impact: Changes to Consumer Debt and Credit CONTENT: Average Total Debt Is Down; Credit Scores Are Up\n------------------------------------------------\nDespite unemployment rapidly growing to record levels throughout the U.S., the average amount of individual debt has consistently declined since the onset of the pandemic. Average credit scores are increasing at a higher rate than during this same period last year, and credit utilization—how much available revolving credit a consumer is using—is at a record low for the past five months, according to Experian data.\nFrom January 2020 to May 2020:\n*   The average VantageScore increased by five points.\n*   Average total debt balance shrank by 1%.\n*   Average credit card balances decreased by 14%.\n*   Consumer credit utilization decreased by 5 percentage points (from 30% to 25%).\n*   The average number of 30-day delinquencies per consumer decreased 5% (from 0.4 to 0.38).\nSource: Experian and VantageScore data from January 2020 to May 2020\nThese trends show that, broadly, consumers across the U.S. have made some fairly drastic changes to their financial habits over the span of just a few months. Since the beginning of the pandemic, consumers appear to be either paying down their debt or at least not adding to their overall balances. And possibly spurred by the lowered reliance on revolving credit, the average VantageScore increased by double the rate it did during the same period in 2019.\nThe only debt category to see an increase was average personal loan balance, which has grown 2% since the year began. Breaking this down, most of the growth (+1.8%) occurred between the beginning of March and the end of May, which indicates that this increase could be a result of some heightened borrowing following the onset of the pandemic.\nSource: Experian and VantageScore data  \nAverage Increase in VantageScore by State\n-----------------------------------------\nThough the average credit score in the U.S. can—and often does—fluctuate throughout the year, consumers' average VantageScore has changed much more rapidly in the past five months than during the same time period in 2019.\nSince January 2020, the average VantageScore increased by five points—growing from 681 in January to 686 in May, according to Experian data. This 1% increase is more than triple the 0.3% growth seen during the same months the prior year.\nSource: Experian and VantageScore data, January 2020 to May 2020  \nAmericans See Momentary Debt Decreases, Credit Score Increases\n--------------------------------------------------------------\nDespite the abrupt changes to employment, income and commerce since the onset of the COVID-19 crisis, consumer credit files are not yet showing signs of distress. While it's not to say that consumers' finances are withstanding the current economic pressures unscathed, when averaged across the larger population, Experian data shows clear signs of decreasing debt and growing credit scores.\nOver the coming months, we'll continue to gauge consumer finances as the country continues to react to the ongoing health and financial crisis. Spending may also change as local economies begin to reopen, and debt levels could fluctuate as economic relief options run out.  \n**Methodology:** The analysis results provided are based on an Experian-created statistically relevant aggregate sampling of our consumer credit database that may include use of the FICO® Score 8 version. Different sampling parameters may generate different findings compared with other similar analysis. Analyzed credit data did not contain personal identification information. Metro areas group counties and cities into specific geographic areas for population censuses and compilations of related statistical data.\nFICO® is a registered trademark of Fair Isaac Corporation in the U.S. and other countries. END
 TITLE: COVID-19 Impact: Changes to Consumer Debt and Credit CONTENT: Average Increase in VantageScore by State\n-----------------------------------------\nThough the average credit score in the U.S. can—and often does—fluctuate throughout the year, consumers' average VantageScore has changed much more rapidly in the past five months than during the same time period in 2019.\nSince January 2020, the average VantageScore increased by five points—growing from 681 in January to 686 in May, according to Experian data. This 1% increase is more than triple the 0.3% growth seen during the same months the prior year.\nSource: Experian and VantageScore data, January 2020 to May 2020 END
 TITLE: COVID-19 Impact: Changes to Consumer Debt and Credit CONTENT: Americans See Momentary Debt Decreases, Credit Score Increases\n--------------------------------------------------------------\nDespite the abrupt changes to employment, income and commerce since the onset of the COVID-19 crisis, consumer credit files are not yet showing signs of distress. While it's not to say that consumers' finances are withstanding the current economic pressures unscathed, when averaged across the larger population, Experian data shows clear signs of decreasing debt and growing credit scores.\nOver the coming months, we'll continue to gauge consumer finances as the country continues to react to the ongoing health and financial crisis. Spending may also change as local economies begin to reopen, and debt levels could fluctuate as economic relief options run out. END
 TITLE: Women and Credit 2020: How History Shaped Today’s Credit Landscape CONTENT: Women's Credit and Finances Before the Equal Credit Opportunity Act\n-------------------------------------------------------------------\nWomen's financial subservience to men was the norm for centuries. Married women in the early U.S. were not considered legal entities independent of their husbands thanks to a principle known as coverture, a holdover from British law.\nThat meant husbands could take control of real estate wives brought into the marriage, and they took full ownership of all other types of property she held. (Single women had the same legal right to property as men, but the number of unmarried women in the 18th and 19th centuries was very low compared with today.) Married women also could not manage their own income, make contracts or create wills.\n> Women carry less debt than men in nearly all credit categories.\nStarting in the mid-1800s, states began enacting laws chipping away at these restrictions for married women. In 1848, New York became the first to pass an extensive law allowing married women to own property, but it took decades for all American married women to gain full legal control of their property, savings and earnings. Well into the 20th century, they continued to face financial discrimination.\nMarried women seeking mortgages with their husbands encountered lenders who wouldn't include their full incomes in the application, and many lenders and credit card issuers required a man to cosign a woman's credit application. One argument was that a working woman's income was more likely to drop in the future if they took time away from the workforce while they cared for family members. But the process amounted to overt gender-based discrimination. END
 TITLE: Women and Credit 2020: How History Shaped Today’s Credit Landscape CONTENT: Then the Equal Credit Opportunity Act of 1974 was signed into law, and lenders were banned from discriminating against consumers based on their sex or marital status.\nLenders could no longer require a male cosigner or otherwise treat women differently when they applied for credit, and women could not be charged higher interest rates or be required to make larger down payments than a man. But while there are consequences when the law is broken, there are still ways gender disparities and biases continue to affect women seeking credit.\nFor instance, because creditors use income as a primary qualification in lending decisions, women who earn less than men—or who earn no income as family caregivers—may have a harder time getting credit, or getting the most favorable terms on loans and credit cards.\nWomen earning little or no income can join a family member's credit account as an authorized user to help them build credit. But because authorized users are not responsible for making payments, some lenders may not weigh that account history the same as they would an account on which the consumer is a primary account holder—and that may affect the credit limits or interest rates they'd receive when applying for credit in their name.\nSimilarly, women who are widowed or divorced and who didn't have independent credit accounts during marriage can also face difficulties getting loans or credit cards on their own. END
 TITLE: Women and Credit 2020: How History Shaped Today’s Credit Landscape CONTENT: How Women's Credit and Finances Compare to Men's\n------------------------------------------------\nWomen's and men's average FICO® Scores are nearly identical: 705 for men and 704 for women, according to Experian data from the second quarter (Q2) of 2019. Both groups' scores have increased about 10 points since Q2 2015.\nMen carry more debt than women across nearly all categories, but the differences aren't always significant. For instance, men have just $125 more in credit card debt than women on average, as of Q2 2019. But women have more open credit card accounts than men do: 4.5 compared with 3.6.\nPersonal loans reflect the largest statistical spread between debt balances by gender. Men have 20% more personal loan debt than women: $17,716 compared with $14,780. They also have 16.3% more auto loan debt and 9.7% more mortgage debt.\nWhen adding up all types of debt we analyzed—credit cards, student loans, auto loans, personal loans, home equity lines of credit and mortgages—men carry $18,533, or 21.7%, more debt than women.\nOne outlier is student loans: On average, women have $36,131 in student loan debt, which is $943, or 2.7%, more than what's carried by men.\nSource: Experian Q2 2019 data\nMen's and women's attitudes toward debt differ, according to a 2018 American University analysis of survey data among unmarried consumers. Women were more likely to say that taking on debt is acceptable during periods of financial hardship, such as when they're between jobs. Men were more likely to say it's acceptable to incur debt to buy luxury items. That may account for some of the difference in debt loads.\nSo, too, might the fact that women's earnings generally lag behind men's. While women's FICO® Scores have reached parity with men, their incomes haven't. Even with additional education, the income difference in many occupations still exists.\nOverall, women without bachelor's degrees earn 78 cents for every dollar men earn, according to the U.S. Census Bureau. While bachelor's degree holders earn nearly double the salaries of those without, the gender wage gap is even greater among the college-educated. Women with college degrees earn 74 cents for every dollar men earn, according to the U.S. Census Bureau. END
 TITLE: Women and Credit 2020: How History Shaped Today’s Credit Landscape CONTENT: How to Build and Keep Good Credit\n---------------------------------\nBoth women and men can benefit from a deep knowledge of their credit scores. Here's how to keep your score as strong as possible:\n*   **First, get credit in your name.** If you can't qualify for a credit card or loan on your own, start off as an authorized user, then apply for your own account when your score is high enough to qualify. Or start by getting a secured credit card in your name. Some secured credit card issuers may upgrade you automatically to a traditional, unsecured card after a period of on-time payments and responsible usage.\n*   **Regularly check your credit report.** The information in it determines your credit score. (You're entitled to one free credit report per year from each of the three major credit bureaus at AnnualCreditReport.com.) Double-check that the information in your credit report is accurate and up to date. If you notice any discrepancies, you can dispute the information with the credit bureaus and also contact the lender reporting the information directly so they can update their records.\n*   **Make it a priority to pay all bills on time.** The most important factor in your credit score is payment history, and even a single late or skipped credit card or student loan bill can negatively affect it. Set alerts or reminders, or even better, set up autopay so your bills are paid directly from your checking account each month.\n*   **Limit credit utilization.** After payment history, credit utilization is the next-most important contributor to your credit score. Your credit utilization ratio is the amount of revolving credit you use compared with the limit your creditors give you, and it's best to keep it under 30%, according to experts—but the lower, the better.  \n    That means using credit cards only for purchases you can afford to pay off each month. That will help keep your accounts active and show lenders that you can successfully manage credit.\n*   **Track your credit score.** There are lots of ways to monitor your credit score: Your credit card company, lender or bank might offer free access to it, or you can view your FICO® Score through Experian's free service. You'll be able to see which factors are negatively affecting it so you can address them. END
 TITLE: Women and Credit 2020: How History Shaped Today’s Credit Landscape CONTENT: Moving Forward\n--------------\nWhile women benefit from regulations banning discrimination in lending, gender disparities still exist in the financial industry. Arm yourself with mastery of credit and how it's developed so you can protect yourself, stay alert to potential bias and take advantage of hard-won victories on the road to women's full financial independence. END
 TITLE: What Is the Average Number of Credit Cards per US Consumer? CONTENT: The average number of credit cards per U.S. consumer dropped in every state in 2020. Consumers in Massachusetts and New York saw the most significant drop, with the average number of credit card accounts per consumer decreasing by 6% in both states in Q3 2020.\nNew Jersey took the top spot as the state where consumers had the most credit card accounts in Q3 2020, with a total of 4.54 accounts on average, according to Experian data. Alaska was on the other end of the spectrum: Consumers there only had an average of 3.06 credit card accounts in Q3 2020.\nSource: Experian END
 TITLE: What Is the Average Number of Credit Cards per US Consumer? CONTENT: Average Number of Credit Cards by Generation\n--------------------------------------------\nBroken down by age group, members of older generations typically carry the most credit cards. In Q3 2020, consumers ages 40 to 74 had more than four credit card accounts each on average, according to Experian data.\nWhile older consumers carry more cards, members of the youngest generation are rapidly expanding the number of cards in their wallets. Generation Z consumers increased their average number of credit card accounts by 9% from 2019, following a general trend that saw younger age groups taking on more debt.\nThe increase in the average number of cards among younger consumers was mirrored by a decrease among older Americans. Members of the silent generation—ages 75 and older—saw an 9% decrease in the number of card accounts since 2019.\nSource: Experian; ages as of 2020 END
 TITLE: What Is the Average Number of Credit Cards per US Consumer? CONTENT: Average Credit Card Debt Statistics\n-----------------------------------\nSince 2019, credit card debt in the U.S. experienced notable change—dropping for the first time in eight years, according to Experian's Consumer Credit Card Review. Overall, total credit card debt decreased by 9% in 2020, or just over $70 billion. Average individual credit card balances—which in Q3 2020 stood at $5,315—decreased by 14%, or $879, during this period.\nSource: Experian END
 TITLE: What Is the Average Number of Credit Cards per US Consumer? CONTENT: Should You Close Unused Credit Cards?\n-------------------------------------\nWhile Americans, on average, have nearly four credit cards each, that's only a national average. When it comes to how many credit card accounts _you_ should have, you need to base that decision on your specific financial situation.\nIf you are considering closing credit cards you don't use, think again. Though it may seem counterintuitive, closing credit accounts can actually hurt your credit score. Here's why:\n*   **Increased credit utilization:** When you close a credit card account, you'll lose the credit limit that goes along with it. That will lower your overall credit limit which could impact your credit utilization rate, one of the most important factors in your credit score.\n*   **Decreased average age of accounts:** The length of your credit history, measuring how long you've been actively using credit, makes up a smaller portion of your credit scores. Closing credit card accounts reduces your average credit history length. While a credit card closed in good standing can stay on your credit report for up to 10 years, credit models may treat these closed accounts differently, which could impact your credit scores.\nInstead of closing old accounts, consider keeping them open and using them occasionally for a small purchase. This will keep your account active and help you maintain a lower utilization rate, which can help your scores. Of course there are a few exceptions to this, including if a card has an expensive annual fee you can't afford. Additionally, if you know you're unable to control your spending when you have access to credit cards, it may be financially prudent to close accounts to stifle any temptation.\nIf you choose to keep the accounts open, it's important to know that having multiple accounts won't negatively impact your credit scores. If anything, the larger combined credit limits will inflate your total credit limit—helping your utilization stay low.\nIf you're not sure how many credit card accounts you have open, consider getting a free copy of your credit reports from Experian to see what's listed in your credit file and how your accounts could be affecting your credit score. END
 TITLE: American Express Unveils Updates to Gold and Platinum Card CONTENT: Amex Gold Card Adds Uber Eats Pass, Uber Cash\n---------------------------------------------\nThe American Express Platinum Card® wasn't the only rewards card impacted by changes in consumer behavior during the pandemic. American Express Gold Card holders will be getting two new benefits: $120 in Uber Cash on Gold each year and an offer for a free Uber Eats Pass for 12 months when you enroll with your Gold Card by 12\/31\/21.\n*   **Up to $120 Uber Cash**: This Uber Cash will be issued over the course of the year ($10 per month). You will need to connect your Gold Card with your Uber account in the Uber app in order for the monthly benefit to appear. Uber Cash can be used for U.S. Uber Eats orders as well as U.S. Uber rides.\n*   **Uber Eats Pass**: An Uber Eats Pass offers a benefit to anyone who uses Uber Eats to order food. People with an Uber Eats Pass avoid delivery fees and get 5% off orders over $15 at eligible restaurants. To get started with your Uber Eats Pass, connect your Amex Gold Card with your Uber Wallet and open your Uber Eats app to activate the offer. Once you activate this offer, your Uber Eats Pass will be free for 12 months. [_Learn More_](;!!MfzFaTml5A!2CEXdB1m-Hb4sb7HQAR7ocmmA7nhOlf0o6jy-SOnsDmi0EU5dHXtoEN0-G8Dq018o-JkSs4K0i0$ \";!!MfzFaTml5A!2CEXdB1m-Hb4sb7HQAR7ocmmA7nhOlf0o6jy-SOnsDmi0EU5dHXtoEN0-G8Dq018o-JkSs4K0i0$\")_._\n*   **Introduction of rose gold as a permanent card design option**: In past years, American Express offered the option of getting a rose gold-colored card instead of the classic gold. While they limited this option in the past, they will be making the color selection a permanent option moving forward.\nThe Gold Card provides excellent rewards on dining—it offers 4 points per dollar spent at restaurants and groceries. The addition of the Uber Cash and Uber Eats Pass aligns with the card's other benefits to provide potential savings when it's time to eat. Keep in mind, unlike typical credit cards, the American Express® Gold Card only lets you carry a balance for certain charges—not all of them. If you're interested in the American Express® Gold Card and the benefits it provides, create an Experian account and find out if you're paired with this card through Experian CreditMatch™. END
 TITLE: Consumers Feeling Better About the Pandemic, Economy CONTENT: Worry Over COVID-19 Impact Down Since March 2020\n------------------------------------------------\nThough two-thirds of survey respondents reported that the pandemic had at least a small effect on their finances, overall concern about the financial and health impacts of COVID-19 is down since the start of the pandemic.\nThe portion of respondents feeling \"extremely\" concerned about the coronavirus dropped to 28%—down from 43% in March 2020, according to Experian's survey. The portion that felt \"extremely\" concerned about the economy is down to 26%—a decrease from 34%.\nAlong with these drops in concern over the virus and its economic impact, consumers reported being less worried about things like their family's health, their personal finances and their credit. That said, over half of respondents are still feeling uneasy in at least a couple of these areas. The portion of consumers worried about their family's health dropped by 14 percentage points, moving from 82% to 68% in the past year. Meanwhile, 55% said they were worried about their personal finances, down from 69% in March 2020. And 37% said they were worried about their credit, down from 47% last year. END
 TITLE: Consumers Feeling Better About the Pandemic, Economy CONTENT: Most Consumers Say They Can Cover Upcoming Bills\n------------------------------------------------\nWhen it comes to the ability to pay bills, 74% of those surveyed said they would be able to cover their payments in the coming three months. Another 12% said they wouldn't be able to cover their bills, and 14% said they were unsure.\nIn total, 26% of respondents reported being either unsure of whether they could cover their upcoming bills, or said they were sure that they wouldn't be able to. While it's troubling that more than a quarter of the group was still struggling to cover payments, the March 2021 survey showed a 12% improvement over last year, which indicates more people are confident in their ability to manage their obligations.\nAmong the respondents unsure about being able to make bill payments, the biggest concerns were covering utility, credit card and rent payments: 36% said they might not be able to cover utility bills; 33% said their credit card bill was a concern; and 31% worried about their rent payments. END
 TITLE: Consumers Feeling Better About the Pandemic, Economy CONTENT: Consumers Spending Changed Since Start of Pandemic\n--------------------------------------------------\nSpending patterns have also changed since the onset of the pandemic. The portion of consumers spending more on groceries and in-home entertainment is down since March. And the percentage of respondents spending more on restaurants, clothing and gifts has increased, according to Experian's survey.\nIn total, 42% of recently surveyed respondents said they were spending more now on groceries than they did before the pandemic; since March 2020, this number was down 7%. Another 25% said they were spending more now on in-home entertainment than they did before the pandemic, also down by 7%.\nOn the other end of the spectrum, 11% of consumers surveyed said they were spending more on clothing now than before the pandemic—an increase of 5% since March 2020. Increases also occurred in the portion reporting they're spending more now on gifts: 6%, which is a 4% increase since March 2020. END
 TITLE: Consumers Feeling Better About the Pandemic, Economy CONTENT: Half of Stimulus Recipients Will Use Funds for Monthly Bills\n------------------------------------------------------------\nWhen asked how they planned to use federal stimulus funds—specifically the payment that started going out in December 2021—50% of those that received or anticipated receiving the payment said they would use it to pay down current monthly obligations, including bills and loan payments.\nWhen compared with how they answered this question in March 2020, the ratio of consumers planning to use their stimulus for monthly obligations dropped by 9%—showing that consumers may have more financial flexibility now than they did before.\nThe other primary use of stimulus check money was contributing to savings: 44% of those that received or anticipated receiving a stimulus check said they would use the payment to increase savings.\nThe rest of the group reported various uses for the stimulus payments, including 9% saying they'll use it for shopping and entertainment; 7% for investments; 5% for a large purchase; 5% for vacation; and 5% for something else. END
 TITLE: Consumers Feeling Better About the Pandemic, Economy CONTENT: Check Your Credit if COVID-19 Impacted Your Finances\n----------------------------------------------------\nIf you've been financially impacted by the pandemic, or are curious how or if your credit has been affected by any changes to your financial life, consider getting a free copy of your credit reports and scores from Experian to get an updated view of your how you're doing, and consider free credit monitoring from Experian to keep an eye on your credit going forward. END
 TITLE: How to Get a Secured Credit Card CONTENT: Why Secured Credit Cards Can Be a Good Option\n---------------------------------------------\nSecured cards give people with limited or poor credit history the opportunity to establish and build their credit. They can also serve as stepping stones to obtaining other forms of credit.\nUnlike prepaid cards—which are preloaded with cash and are used like debit cards—secured cards typically report your account and payment history to at least one of the three major credit bureaus. Having your information reported to the credit bureaus is crucial to establishing and building your credit score, so you should confirm with the issuer of your secured card that it will report your account history.\nSome card issuers may return your original security deposit or increase your credit limit if you demonstrate responsible use, or may even convert the card to an unsecured card. For example, the Secured Mastercard® from Capital One may offer cardholders a higher credit limit in as little as six months, and the security deposit can be earned back as a statement credit by responsibly using the card. END
 TITLE: How to Get a Secured Credit Card CONTENT: Can You Get Denied for a Secured Credit Card?\n---------------------------------------------\nWhen issuing a secured credit card, companies are typically not as concerned with an applicant's credit history as they are when issuing an unsecured card. Most will still look at your credit file for red flags like past bankruptcies or a history of missed payments, but are often willing to accommodate people with a poor or limited credit history. Since some issuers still look for a minimum credit score when considering applicants, it's important to understand where your credit stands before you apply. END
 TITLE: How to Get a Secured Credit Card CONTENT: Secured Cards With No Minimum Credit Score Requirement\n------------------------------------------------------\nFor people with poor credit, or no credit history at all, there are still some options when it comes to getting a secured card. The following secured cards have no or minimal requirements for credit history or minimum score, and can be used just like normal credit cards:\n#### The OpenSky® Secured Visa® Credit Card\n**APR**\n17.39% Variable\n**Intro APR:** N\/A\n#### Platinum Elite Mastercard® Secured Credit Card\n**APR**\n19.99% Variable\n**Intro APR:** N\/A\nCheck out Experian CreditMatch™ to find out if you're matched with any of these secured cards. END
 TITLE: How to Get a Secured Credit Card CONTENT: Important Factors to Consider When Choosing a Secured Credit Card\n-----------------------------------------------------------------\nIt's important to pay close attention to the annual fees, APRs and miscellaneous fees associated with the secured card you choose. Some secured cards may have higher APRs than others, so paying attention to these details can help you save money over time.\nYou should also make sure that the card issuer reports your information to at least one, and preferably all three, major credit bureaus. Managing a secured credit card responsibly and having your on-time payments reflected in your credit reports can help you build, or rebuild, your credit.\nAs you start to use your secured credit card, it is important to know how your credit scores are calculated and what you can do to improve them over time. Checking your credit reports and scores regularly can help you stay on top of your finances and track any changes to your scores over time.\nFree credit reports from all three major bureaus are available via AnnualCreditReport.com. You can also get your credit report and scores for free through Experian. END
 TITLE: How to Get a Secured Credit Card CONTENT: Do Secured Cards Offer Rewards or Benefits?\n-------------------------------------------\nBeyond helping to build credit, some secured cards come with some of the same perks that make traditional credit cards so desirable. For example, a few secured credit cards come with benefits like cash back rewards, purchase and fraud protections and rental car insurance.\nWant to instantly increase your credit score? Experian Boost™† helps by giving you credit for the utility and mobile phone bills you're already paying. Until now, those payments did not positively impact your score. This service is completely free and can boost your credit scores fast by using your own positive payment history. It can also help those with poor or limited credit. END
 TITLE: Americans in Their 50s Have the Highest Average Credit Card Debt CONTENT: Consumers in Their 20s\n----------------------\nThe average credit card balance among consumers in their 20s was $2,709 in Q2 2019. Credit card debt increased the most among 20-year-olds year over year with a 5% change, up from an average of $2,581 in Q2 2018, according to Experian data.  \nSource: Experian Q2 2019 data END
 TITLE: Americans in Their 50s Have the Highest Average Credit Card Debt CONTENT: Consumers in Their 30s\n----------------------\nThe average credit card balance among consumers in their 30s was $5,563 in Q2 2019. That's up 1.8% from an average of $5,466 in Q2 2018.\nSource: Experian Q2 2019 data END
 TITLE: Americans in Their 50s Have the Highest Average Credit Card Debt CONTENT: Consumers in Their 40s\n----------------------\nThe average credit card balance among consumers in their 40s was $7,922 in Q2 2019. That's up 2.2% from an average of $7,750 in Q2 2018.\nSource: Experian Q2 2019 data END
 TITLE: Americans in Their 50s Have the Highest Average Credit Card Debt CONTENT: Consumers in Their 50s\n----------------------\nThe average credit card balance among consumers in their 50s was $8,364 in Q2 2019. That's up 3% from an average of $8,116 in Q2 2018. Americans in their 50s carried the highest average credit card debt in Q2 2019.\nSource: Experian Q2 2019 data END
 TITLE: Americans in Their 50s Have the Highest Average Credit Card Debt CONTENT: Consumers in Their 60s\n----------------------\nThe average credit card balance among consumers in their 60s was $6,832 in Q2 2019. That's up 1.9% from an average of $6,701 in Q2 2018.\nSource: Experian Q2 2019 data END
 TITLE: Americans in Their 50s Have the Highest Average Credit Card Debt CONTENT: Consumers in Their 70s\n----------------------\nThe average credit card balance among consumers in their 70s was $5,250 in Q2 2019. That's up 2.1% from an average of $5,139 in Q2 2018.\nSource: Experian Q2 2019 data END
 TITLE: Americans in Their 50s Have the Highest Average Credit Card Debt CONTENT: Consumers in Their 80s\n----------------------\nThe average credit card balance among consumers in their 80s was $2,990 in Q2 2019. That's up 4% from an average of $2,876 in Q2 2018.\nSource: Experian Q2 2019 data END
 TITLE: Americans in Their 50s Have the Highest Average Credit Card Debt CONTENT: Consumers in Their 90s\n----------------------\nThe average credit card balance among consumers 90 through 99 years old was the lowest among all age groups at $1,433 in Q2 2019. That's up 4.6% from an average of $1,370 in Q2 2018.\nSource: Experian Q2 2019 data END
 TITLE: California Leads Nation in Rent Costs CONTENT: Rent is Higher in States with Higher Incomes\n--------------------------------------------\nThe average estimated income in the U.S. was $79,834 in the second quarter (Q2) of 2019, according to Experian data. In the five states with the highest median rent, incomes were significantly above the national average.\nIn California, the state with the highest median rent, the average estimated income in Q2 2019 was $85,750. In Washington, D.C., which had the next-highest median rents, the estimated income was even higher at $94,951. Meanwhile, West Virginia, the state with the lowest median rent, had an average income of $59,999, nearly $20,000 below the national average.\nCities and states with high costs of living typically are areas with substantial job opportunities and developed industry. When looking at the states with top rental rates, all are home to several major cities that are hubs for technology, medicine and other top industries. The one exception to this is Hawaii, which has seen home values and general cost of living soar over time as it has to import much of its consumer goods. END
 TITLE: California Leads Nation in Rent Costs CONTENT: States With Higher Rent Also Home to Majority of Top Credit Scores\n------------------------------------------------------------------\nHaving a good credit score is important for many things—including getting approved for an apartment rental. Our data shows states with higher median rent also are home to many of the top credit scores in the U.S.\nAcross the country, the 17 states with the highest median rent were also home to five of the top 10 cities with the highest average FICO® Scores.\nMinnesota holds the highest average FICO® Score among states at 733, according to Experian Q2 2019 data. Its median rent was $1,409, however, which put it 21st among states. This combined with an average income above the national average makes it one of the more affordable markets in the country to rent an apartment.\nMississippi had the lowest average FICO® Score of any state at 667, and also had a below-average median rent of $966. Mississippi's average estimated income of $60,776 was also well below the national average. END
 TITLE: California Leads Nation in Rent Costs CONTENT: A Good Credit Score Can Be Instrumental to Getting an Apartment\n---------------------------------------------------------------\nBeyond just being able to afford the cost of rent, many apartments now require that applicants have good credit to be approved for an apartment. This is especially true in metropolitan areas like New York City; Los Angeles; Washington, D.C., and others.\nIf you're thinking about getting an apartment and don't know whether you'll get approved, consider getting a free copy of your Experian credit report and scores so you can see what landlords will see when reviewing your credit history. END
 TITLE: Survey: Less Than Half of Millennials Say They Have Credit Card Debt CONTENT: Millennials Have Second-Lowest Average FICO® Score☉\n---------------------------------------------------\nTo set the scene, millennials have an average FICO® Score of 668, the second-lowest score behind only Generation Z, which has an average score of 667, according to Experian data from the second quarter (Q2) of 2019.\nWhen it comes to debt, millennials across the country have the third-highest total debt, carrying an average of $78,396. And while both baby boomers and members of Generation X have more debt than millennials, balances among millennials are growing across each debt product, and show no signs of stopping any time soon. END
 TITLE: Survey: Less Than Half of Millennials Say They Have Credit Card Debt CONTENT: Credit Cards Are the Most Popular Type of Debt Among Millennial Respondents\n---------------------------------------------------------------------------\nWhen asked what type of debt they currently have, 42% of millennials surveyed said they have credit card debt. A smaller share (31%) said they have student loan debt, 22% said they have auto debt and only 18% said they have personal loan debt.\nBroken out by gender, a larger portion of millennial women surveyed reported having credit card debt than men. The same was true of millennial women for student loan debt, auto debt, mortgage debt and medical debt. END
 TITLE: Survey: Less Than Half of Millennials Say They Have Credit Card Debt CONTENT: Most Millennials Surveyed Did Not Have a Rewards Credit Card\n------------------------------------------------------------\nWhile more millennials reported having a credit card than any other debt product, 52% of those surveyed said that they did not have a rewards credit card. Rewards credit cards offer users the possibility of earning valuable reward points for each dollar they spend on certain purchases. These points can be used for travel, online purchases and various other things, depending on the card issuer and the rewards program. END
 TITLE: Survey: Less Than Half of Millennials Say They Have Credit Card Debt CONTENT: Most Millennials Reported Using a Credit Card to Build Their Credit\n-------------------------------------------------------------------\nWith the majority of millennials surveyed not focused on using their credit cards to earn reward points, it's not surprising that 40% of respondents said they had a credit card to build their credit. Credit cards are one of the best ways to establish and build credit, especially for younger borrowers who may not be taking out other loans.\nThe rest of the millennials surveyed reported having a credit card so they could have extra money (30%), for rewards (26%) and to make large purchases (25%). END
 TITLE: Survey: Less Than Half of Millennials Say They Have Credit Card Debt CONTENT: More Than Three-Quarters of Millennials Surveyed Aren't Considering Taking New Debt\n-----------------------------------------------------------------------------------\nLooking into the future, only 18% of millennials said they were considering taking on new debt—a surprising statistic for a generation whose debt across the U.S. is growing in nearly every loan category.\nThe majority (53%) of millennials surveyed reported only having one to two credit cards. And in Q2 2019, millennials carried an average of $4,889 in credit card debt, according to Experian data.\nSo while millennials self-admittedly don't have that many credit cards and their debt is less than the national average of $6,194, a large portion (82%) of participants in our survey still say they aren't considering taking on more debt. END
 TITLE: Survey: Less Than Half of Millennials Say They Have Credit Card Debt CONTENT: Learn More About Millennial Debt and Credit\n-------------------------------------------\nTo read more Experian research on millennial debt and credit check out the following articles:\n*   Millennial Credit Card Debt\n*   Millennial Mortgage Debt\n*   Millennial Personal Loan Debt\n*   Millennial Auto Debt\n*   Millennial Student Loan Debt\n*   Millennial Credit Scores END
 TITLE: A Look at Highest Credit Limits Among Generations and States CONTENT: Baby Boomers Have Highest Average Credit Limits of Any Generation\n-----------------------------------------------------------------\nBaby boomers have the highest average total credit limits of any generation at $39,919 across all credit cards, according to Experian data. This group of 55- to 73-year-olds also boasts the second-highest credit score of any generation, which may indicate that their high total credit limit is contributing to a low utilization ratio.\nGeneration Z—the youngest generation—has an average total credit limit of $8,062 across all cards. That's nearly one-fourth the amount held by baby boomers. These 18- to 22-year-olds have an average FICO® Score☉ of 667, the lowest of any age group. This low average credit limit and score may mean that the generation's utilization ratios tend to be on the higher side, as they have less overall credit to rely on and even a small balance can drive up their ratio.\n\\*Source: Experian data from Q2 2019 END
 TITLE: A Look at Highest Credit Limits Among Generations and States CONTENT: New Jersey Consumers Have Highest Average Total Credit Limits\n-------------------------------------------------------------\nConsumers in New Jersey topped the charts with the highest average total credit limits. They had $37,845 in credit available to them across all their credit cards, according to Experian data. The state's average FICO® Score was 714, well above the national average of 703.\nThe District of Columbia, Connecticut, Massachusetts and Colorado followed as the states with the five highest total average credit limits in the U.S.\n\\*Source: Experian data from Q2 2019 END
 TITLE: A Look at Highest Credit Limits Among Generations and States CONTENT: Mississippi Consumers Have Lowest Average FICO® Scores and Lowest Total Credit Limits\n-------------------------------------------------------------------------------------\nMississippi consumers had the lowest total average credit scores in Q2 2019, with $21,676 across all credit cards, according to Experian data. That's 43% less than baby boomers who had the highest total limits and 31% less than the national average total limit which in Q2 2019 was $31,397.\nSimilar to Generation Z, which had the lowest total credit limits and lowest credit scores, Mississippi had the lowest average FICO® Score of any state in the U.S. This could be attributed, in part, to their low total credit limits and a consumer tendency to overspend on their borrowed revolving debt.\n\\*Source: Experian data from Q2 2019 END
 TITLE: A Look at Highest Credit Limits Among Generations and States CONTENT: Average Credit Scores Lower in States With Higher Total Credit Limits\n---------------------------------------------------------------------\nOverall, the states with the highest total credit limits had credit scores that were well above average. In the states with the lowest total limits, the opposite was true, and most of the states had FICO® Scores that were below the national average.\nConsumers' credit utilization ratio counts for 30% of their FICO® Score and typically, with well-managed spending habits, the higher your total credit limit, the lower your utilization. This ratio is the second-most important factor in FICO® Score calculations (next to payment history), so maintaining low utilization can have a great impact on a consumer's credit scores. END
 TITLE: Consumers in Top Credit Ranges Have Highest Debt CONTENT: Most Consumers Believe High Debt Equals Low Credit Scores\n---------------------------------------------------------\nOverwhelmingly, survey respondents—80%—said they believe that having high debt would hurt credit scores.\nSimilarly, they thought people with top credit scores would carry less debt than people with lower scores: 51% believed people with a score between 740 and 850 would have less debt than people with scores at the lower end of the scoring scale (300 to 670). Just 29% thought people with higher scores would have more debt. END
 TITLE: Consumers in Top Credit Ranges Have Highest Debt CONTENT: Consumers With Top Credit Scores Have Higher Average Debt\n---------------------------------------------------------\nWhen looking at average debt compared with FICO® Score ranges, the trend is clear: As credit scores get higher, total debt grows. People with average FICO® Scores in the \"exceptional\" range of 800 to 850 have the highest average total debt, carrying $136,801 in Q2 2019, according to Experian data.\n\\*Source: Experian Q2 2019 data\nCredit scores and the ranges they fall in are important factors when taking on new debt. Often, people in lower credit score ranges have trouble obtaining new loans. People in the lowest credit range, with scores from 300 to 579, carried $38,324 in total average debt in Q2 2019, according to Experian data. That's less than one-third of the total debt carried by consumers in the top credit range and could indicate the difficulty these consumers experience when applying for loans or credit cards.\nBut while lower credit scores can be a barrier to taking out new credit, the trend also shows that once you have high debt amounts, it's possible to simultaneously maintain a good credit score. END
 TITLE: Consumers in Top Credit Ranges Have Highest Debt CONTENT: States With Highest Average Debt Have Above Average Credit Scores\n-----------------------------------------------------------------\nThe five states where consumers carry the most debt also have average or above average FICO® Scores. The average FICO® Score in the U.S. was 703 in Q2 2019, and the total average debt carried by American consumers was $92,479.\n\\*Source: Experian Q2 2019 data END
 TITLE: Consumers in Top Credit Ranges Have Highest Debt CONTENT: American Cities With the Most Debt Carry High Credit Scores\n-----------------------------------------------------------\nAmong the states and cities with the highest debt amounts in the U.S., average FICO® Scores were consistently average or above average. In some cases, cities with top debt even had average FICO® Scores in the top 10% of all cities in the U.S. This trend was also true for individual consumers across the country.\nTwo of the five cities with the highest average debt—Danville and San Ramon, both in California—had average FICO® Scores in the top 10% of any city in the country.\n\\*Source: Experian Q2 2019 data\nWhile high debt amounts are not a requisite for having a good credit score, these data findings show that if you properly manage debt, it doesn't have to bring your credit score down. END
 TITLE: Consumers in Top Credit Ranges Have Highest Debt CONTENT: Paying on Time Is Key to High Credit Scores\n-------------------------------------------\nWhile survey respondents thought debt played a serious role in credit scores—many even thinking it had a negative effect—36% reported they felt carrying debt was not problematic as long as all payments were made on time.\nIndeed, no credit score can reach the top range if a borrower doesn't pay their bills on time. Payment history is the most important aspect of calculating a credit score, and even one late or missed payment can have a serious impact on scores. Borrowers looking to manage a high amount of debt while maintaining a good score can do it as long as they make all debt payments on time and know all the factors that affect credit scores. END
 TITLE: Millennials Have the Fastest-Growing Personal Loan Debt CONTENT: Millennial Personal Loan Debt Grows 44% in Five Years\n-----------------------------------------------------\nWhile millennials have one of the lowest personal loan burdens, over the past five years, the amount the generation owes on their personal loans has grown 44%, according to Experian data. This is more than double the growth seen by any other age group.\nSince the second quarter of 2014, millennial debt grew from $8,201 to its current level of $11,819. Generation X also saw double-digit growth during this period, increasing average personal loan balances by 16%. Baby boomers' personal loan debt grew by only 2% in the past five years, while the silent generation saw an 8% decrease. Generation Z was not included in this analysis due to their age. END
 TITLE: Millennials Have the Fastest-Growing Personal Loan Debt CONTENT: Millennials' Personal Loan Balances Still Lower Than Most\n---------------------------------------------------------\nFollowing only members of Generation Z—who carried an average personal loan balance of $4,526 in Q2 2019, millennial consumers had the second-lowest personal loan debt of any generation. This balance is up 5% from last year's average balance of $11,303, but is still drastically lower than the $19,253 held by baby boomers.\n\\*Source: Experian data END
 TITLE: Millennials Have the Fastest-Growing Personal Loan Debt CONTENT: Millennials in South Dakota Have Highest Average Personal Loan Balances\n-----------------------------------------------------------------------\nWhen looking across the country, millennials had the highest average personal loan balances in South Dakota, carrying an average of $19,794 in Q2 2019, according to Experian data. That's 67% higher than the average millennial personal loan balance across all states and is 22% higher than the national average of $16,259.\nSouth Dakota was followed by four other states in the American northwest, including Wyoming, North Dakota, Montana and Washington.\n\\*Source: Experian data from Q2 2019. Data is specific to millennial credit and debt. END
 TITLE: Millennials Have the Fastest-Growing Personal Loan Debt CONTENT: Millennials in Puerto Rico Have Lowest Average Personal Loan Balances\n---------------------------------------------------------------------\nOn the other end of the spectrum, millennials in Puerto Rico carried the lowest average personal loan debt, with only $7,401 in Q2 2019. This is 54% lower than the national average across all generations and is 37% lower than the average among all millennials.\n\\*Source: Experian data from Q2 2019. Data is specific to millennial credit and debt. END
 TITLE: Millennials Have the Fastest-Growing Personal Loan Debt CONTENT: Millennial Personal Loan Debt Larger in States With Higher Credit Scores\n------------------------------------------------------------------------\nWhile the average millennial's personal loan debt varied across the country, one variable remained the same among the top five states with the highest balances: They also had some of the highest average FICO® Scores. Millennials in Washington, South Dakota and North Dakota all had average FICO® Scores that were in the top 20% in the U.S. among this generation.\nAmong states with the lowest personal loan balances, the trend was the same: The two states with the lowest personal loan balances—Georgia and Texas—had FICO® Scores that were in the bottom 20% of millennial FICO® Scores across the country.\nWhile millennials' personal loan debt is growing at a quick pace, the generation's average balance remains low relative to other generations as this group grows into their prime borrowing years. END
 TITLE: Baby Boomers Carry the Highest Personal Loan Debt CONTENT: Baby Boomer Personal Loan Debt 18% Higher Than National Average\n---------------------------------------------------------------\nWhen it comes to total average debt, baby boomers carry one of the highest overall burdens of any generation. But when broken out by types of debt, baby boomers only top the chart when it comes to personal loans.\nIn Q2 2019, the generation carried an average personal loan balance of $19,253, according to Experian data. That's 18% more than the national average of $16,259 carried across all generations. It's also more than three times the average debt amount carried by Generation Z, the youngest generation included and also the group of consumers who hold the least personal loan debt.\n\\*Source: Experian data END
 TITLE: Baby Boomers Carry the Highest Personal Loan Debt CONTENT: Top Baby Boomer Personal Loan Balances Are in American Northwest\n----------------------------------------------------------------\nAcross the country, the states with the highest average personal loan debt all were concentrated in the American Northwest. This was also true when breaking out balances by generation—the states with the highest personal loan balances across every age group except Generation Z were located in the northwest corner of the country. END
 TITLE: Baby Boomers Carry the Highest Personal Loan Debt CONTENT: Baby Boomer Personal Loan Debt in Washington Double the National Average\n------------------------------------------------------------------------\nBaby boomers in Washington have more personal loan debt, on average, than those in any other state, carrying an average balance of $35,145 in Q2 2019.\n\\*Source: Experian data from Q2 2019. Data is specific to baby boomer credit and debt. END
 TITLE: Baby Boomers Carry the Highest Personal Loan Debt CONTENT: Baby Boomers in Puerto Rico Hold Lowest Average Personal Loan Balances\n----------------------------------------------------------------------\nBaby boomers in Puerto Rico have the lowest personal loan balances, carrying an average of $10,158 in Q2 2019, according to Experian data. While this balance is still twice the national average held by Generation Z, it's 38% less than the national average across all generations.\nPuerto Rico was followed by Washington, D.C. (which is home to the highest average student loan and mortgage balances), Hawaii, Kentucky and Alabama as the states with the lowest baby boomer personal loan debt.\n\\*Source: Experian data from Q2 2019. Data is specific to baby boomer credit and debt\nThe trend is clear when it comes to baby boomers: The generation's debt is on the decline. Baby boomers seem to be quickly moving to a phase of life where their new debt is slowing and overall balances are growing smaller. This can be seen across auto loans, credit cards and mortgage debt. END
 TITLE: Top 25 Cities for Late Payments CONTENT: Cities With the Highest Ratio of Delinquent Credit Accounts\n-----------------------------------------------------------\nBorrowers in Detroit are struggling the most with their debt, with an average ratio of 49.3% delinquent to total credit accounts in Q2 2019, according to Experian data. In comparison, the national delinquency ratio across the nation as of Q2 2019 is 17.5%, about one-third of the rate held by consumers in Detroit.\nDetroit was followed by Camden, New Jersey; Augusta, Georgia; Gary, Indiana; and Pontiac, Michigan, as the cities with the highest ratios of delinquent credit accounts to total accounts. The 25 cities with the highest delinquency ratios all more than double the national average.\nSource: Experian Q2 2019 data END
 TITLE: Top 25 Cities for Late Payments CONTENT: Cities That Have the Lowest Ratio of Delinquent Credit Accounts\n---------------------------------------------------------------\nBorrowers in The Villages, Florida—a retirement community—had the lowest ratio of delinquent credit accounts in Q2 2019, with only 2.6% of their credit accounts considered delinquent. The Villages is also the city with the highest average FICO® Score in the U.S., which is not surprising, as residents of the community have both more established credit history and immaculate payment history, according to Experian data.\nThe Villages was followed by Cupertino, California; Danville, California; McLean, Virginia; and Palo Alto, California, as the top five cities with the lowest ratio of late accounts. All 25 cities with the lowest delinquency ratios also maintained an average credit score significantly above the national average.\nSource: Experian Q2 2019 data END
 TITLE: Top 25 Cities for Late Payments CONTENT: Cities That Saw Biggest Improvement in Delinquent Credit Account Ratio\n----------------------------------------------------------------------\nCamden, New Jersey, saw the nation's largest improvement in the ratio of delinquent to total credit accounts over the past five years, according to Experian data. Camden borrowers reduced their ratio of late payments by over 32 percentage points, dropping from a ratio of 80.6% in Q2 2014 to their current 48.5% for Q2 2019.\nCamden's delinquency ratio is still the second-highest in the country, but the progress shown over the past five years is promising.\nSource: Experian Q2 2014 and Q2 2019 data END
 TITLE: Top 25 Cities for Late Payments CONTENT: Nearly Every City Surveyed Saw Delinquent Credit Account Ratios Drop and Credit Scores Increase\n-----------------------------------------------------------------------------------------------\nOf the nearly 1,000 cities we looked at for our analysis, almost all of them saw a decrease in their delinquency ratio and an increase in their average credit score, according to this analysis.\nWe looked at 976 cities in this analysis, and just 24 saw their ratio of delinquent credit accounts rise between Q2 2014 and Q2 2019. The remaining 952 saw at least some decrease in their delinquency ratio.\nWhen it came to credit scores, almost all cities also had their average credit scores go up over between 2014 and 2019. Only 15 cities saw their scores decrease, with scores in the remaining 961 cities either increasing or staying the same. END
 TITLE: Top 25 Cities for Late Payments CONTENT: What Does Decreased Delinquency Mean for City Credit Scores?\n------------------------------------------------------------\nIt's impossible to say for sure that the drop in the delinquency ratio in these cities is what caused their average credit scores to go up. Credit scores are based on many factors, and scores have been generally risen across the country in recent years. But the fact remains that the majority of cities that saw above-average growth in credit scores also saw a bigger decline in their delinquency ratio. Because payment history is the most important factor in credit score calculations, it's safe to assume on-time payments may have helped consumers' credit scores improve.\nFor perspective, the average FICO® Score in the U.S. has only increased 10 points over the past five years. And in exactly half—488—of the 976 cities in this analysis, credit scores increased 10 points or more—with many increasing by as much as 15 or 20 points. END
 TITLE: Survey: Consumers Want Personal Loans for Large Purchases and Debt Consolidation CONTENT: Consumers Surveyed Have Specific Reasons for Considering a Personal Loan\n------------------------------------------------------------------------\nWhile this may not come as a surprise, 74% of the 210 consumers Experian surveyed who did not currently have a personal loan but were considering getting one in the next five years said there was something specific in their life causing them to consider taking out one.\nNearly 40% of respondents cited debt consolidation as one reason they were considering taking a personal loan. This is a common strategy among people saddled with high interest debt, such as credit card balances, who are looking to save money on interest and streamline debt repayment. In this scenario, the consumer uses the funds from the personal loan to pay off high interest debt, leaving only the payment on the personal loan, which in many cases carries a lower interest rate.\nMore than a third of respondents—35%—said they were also considering getting a personal loan for a home improvement project. Twenty-seven percent of consumers indicated they may use the loan for a large purchase, and another 23% said they would consider using the loan for travel. END
 TITLE: Survey: Consumers Want Personal Loans for Large Purchases and Debt Consolidation CONTENT: In addition to those who were considering a personal loan, Experian surveyed 369 consumers who already had a personal loan and found the following:\n*   28% said they used the loan for large purchases\n*   26% said they used the loan for debt consolidation\n*   17% reported using the loan for home improvements\n*   9% said they used the loan to refinance existing debt\n*   30% reported using their loan for another reason not listed above\nIn line with the survey group that reported similar plans if they were to get a personal loan, the majority of those who already had one reported using the funds on either a large purchase, debt consolidation or home improvement.\nAmong those who offered written responses on specific ways they used their personal loan, reasons cited included purchasing or repairing a vehicle and paying medical expenses. END
 TITLE: Survey: Consumers Want Personal Loans for Large Purchases and Debt Consolidation CONTENT: Majority of Consumers Reported Getting Personal Loans From Conventional Banks\n-----------------------------------------------------------------------------\nOf the 369 respondents who reported taking a personal loan in the past, 67% of them said they received the loan from a conventional bank. Another 18% reported using an online-only lender to take the personal loan.\nWhen split out by age, the majority of respondents who reported using a web-based lender were 44 years old or younger. A larger portion—25%—of survey participants between ages 18 and 44 reported using an online-only lender, compared with only 14% of those 45 and older.\nJust under 6% of respondents reported getting their personal loan through a credit union, citing having an existing account and getting lower rates than they would have with a conventional lender as their main reasons for doing so. END
 TITLE: Survey: Consumers Want Personal Loans for Large Purchases and Debt Consolidation CONTENT: Personal Loans as a Versatile Financial Tool\n--------------------------------------------\nAmong the consumers surveyed that were either considering or had already taken a personal loan, the responses showed that consumers consider personal loans to be a versatile tool that they can use in times of need. Once approved for a personal loan, there are often no stipulations as to what the funds can be used for, and as a result, the respondents showed varied use.\nLearn more about how to get a personal loan and also check out Experian CreditMatchTM, which can pair you with specialized personal loan offers based on your FICO® Score☉ . END
 TITLE: Student Loan Debt Delinquency by Age CONTENT: Borrowers Ages 25 to 34 Have the Most Student Loan Debt\n-------------------------------------------------------\nWhen it comes to federal direct loans—which include direct subsidized loans, direct unsubsidized loans, direct PLUS loans and direct consolidation loans—people ages 25 to 34 owe a total of $454.6 billion, according to the most recent data from the DOE.\nSource: Debt data is from the U.S. Department of Education. Average FICO® Score data is from Experian Q2 2019. END
 TITLE: Student Loan Debt Delinquency by Age CONTENT: Consumers Ages 35 to 49 Saw the Largest Increase in Debt\n--------------------------------------------------------\nWhile borrowers ages 25 to 34 had the most debt, consumers in the next age group up—35 to 49—saw the largest increase in their debt from the previous year. Borrowers 35 to 49 increased their total direct loan debt by $45.9 billion since the second quarter of 2018, according to data from the DOE. One factor that's increasing balances held by these borrowers is that many of them are taking out loans to help finance their children's education. Nearly 800,000 parents borrowed through the federal government's Parent PLUS student loan program between 2017 and 2018, according to the Urban Institute.\nSource: U.S. Department of Education END
 TITLE: Student Loan Debt Delinquency by Age CONTENT: Borrowers Ages 35 to 49 Carry the Highest Delinquent Balances\n-------------------------------------------------------------\nIn addition to seeing the largest growth in their overall direct loan balance, consumers ages 35 to 49 are also struggling the most when it comes to paying back their debt on time. The age group consistently has the highest amount past due in all five delinquency stages, according to data from the DOE.\nA total of $15.5 billion in direct loans held by borrowers ages 35 to 49 was newly delinquent (31 to 90 days late). That's more than double the amount of newly delinquent debt held by 50- to 61-year-olds.\nSource: U.S. Department of Education END
 TITLE: Student Loan Debt Delinquency by Age CONTENT: Consumers With Most Delinquent Debt Still Maintain OK Credit Scores\n-------------------------------------------------------------------\nIt may come as a surprise that consumers with more delinquent student loan debt were not the ones with the lowest credit scores. Because payment history is the most important aspect of credit scores, logic would dictate that people consistently delinquent on loan payments would also maintain the lowest scores. While these consumers didn't have the worst scores of all the age groups, their collective average FICO® Score of 682 does fall more than 20 points below the national average of 703.\nThe consumers who held the most direct loan debt—ages 24 to 35—also had the lowest average credit score of any age group. And while there are several factors that could explain this, including that younger consumers may not have yet built a lengthy credit history, the trend defies other findings that show high debt doesn't necessarily equal low credit scores. END
 TITLE: Consumers in Their Mid-30s Have the Highest Average Student Loan Debt CONTENT: Overall, 35-year-old consumers in the U.S. have the highest student loan balances of anyone ages 20 to 100, carrying an average balance of $42,564, according to Experian data from the second quarter (Q2) of 2019. They were followed by 34-year-olds and 36-year-olds, who carried the second-highest and third-highest average student loan balances, respectively. END
 TITLE: Consumers in Their Mid-30s Have the Highest Average Student Loan Debt CONTENT: Consumers in Their Early 20s Have Lowest Student Loan Debt\n----------------------------------------------------------\nOn the other end of the spectrum, 20-year-olds have the lowest student loan balances, owing an average of $11,576, according to Experian data from Q2 2019. They were followed by 21-year-olds and 22-year-olds, who had the second- and third-lowest balances, respectively.\nThe lower debt levels among younger consumers is attributable to several factors, including their age and what year they're in in school. For students who attended a college or university directly from high school, they may have only completed half of their degree by the time they are 20. These younger consumers are also less likely to have started an advanced degree, which in many cases is an additional cost covered by student loans. END
 TITLE: Consumers in Their Mid-30s Have the Highest Average Student Loan Debt CONTENT: Consumers Ages 30 to 60 Have Above Average Student Loan Debt\n------------------------------------------------------------\nThe average student loan debt for all borrowers between the ages of 30 and 60 were consistently above the national average of $35,620, according to Experian data from Q2 2019. END
 TITLE: Consumers in Their Mid-30s Have the Highest Average Student Loan Debt CONTENT: Consumers in Their 20s\n----------------------\nThe average student loan balances among consumers in their 20s was $21,682 in Q2 2019. That's up from an average of $18,903 in Q2 2018, according to Experian data.\n\\*Source: Experian Q2 2019 data END
 TITLE: Consumers in Their Mid-30s Have the Highest Average Student Loan Debt CONTENT: Consumers in Their 30s\n----------------------\nThe average student loan balance among consumers in their 30s was $40,476 in Q2 2019. That's up from an average of $37,537 in Q2 2018.\n\\*Source: Experian Q2 2019 data END
 TITLE: Consumers in Their Mid-30s Have the Highest Average Student Loan Debt CONTENT: Consumers in Their 40s\n----------------------\nThe average student loan balance among consumers in their 40s was $40,432 in Q2 2019. That's up from an average of $38,322 in Q2 2018.\n\\*Source: Experian Q2 2019 data END
 TITLE: Consumers in Their Mid-30s Have the Highest Average Student Loan Debt CONTENT: Consumers in Their 50s\n----------------------\nThe average student loan balance among consumers in their 50s was $37,656 in Q2 2019. That's up from an average of $35,470 in Q2 2018.\n\\*Source: Experian Q2 2019 data END
 TITLE: Consumers in Their Mid-30s Have the Highest Average Student Loan Debt CONTENT: Consumers in Their 60s\n----------------------\nThe average student loan balance among consumers in their 60s was $33,804 in Q2 2019. That's up from an average of $32,035 in Q2 2018.  \n\\*Source: Experian Q2 2019 data END
 TITLE: Consumers in Their Mid-30s Have the Highest Average Student Loan Debt CONTENT: Consumers in Their 70s\n----------------------\nThe average student loan balance among consumers in their 70s was $28,757 in Q2 2019. That's up from an average of $27,371 in Q2 2018.\n\\*Source: Experian Q2 2019 data END
 TITLE: Consumers in Their Mid-30s Have the Highest Average Student Loan Debt CONTENT: Consumers in Their 80s\n----------------------\nThe average student loan balance among consumers in their 80s was $22,879 in Q2 2019. That's up from an average of $22,582 in Q2 2018.\n\\*Source: Experian Q2 2019 data END
 TITLE: Consumers in Their Mid-30s Have the Highest Average Student Loan Debt CONTENT: Consumers 90-Plus\n-----------------\nThe average student loan balance among consumers 90 through 100 years old was $21,492 in Q2 2019. That's up from an average of $21,355 in Q2 2018.\n\\*Source: Experian Q2 2019 data END
 TITLE: Americans in Their 60s Carry the Highest Average Personal Loan Debt CONTENT: Personal Loan Debt Highest Among Consumers in Their 60s\n-------------------------------------------------------\nOverall, 69-year-old consumers in the U.S. have the highest average personal loan balance at $20,003, according to Experian Q2 2019 data. This group also held the highest average balance in 2018 of $20,615.\nIn fact, the top three average personal loan balances in the U.S. are held by those in their 60s. The second- and third-highest average personal loan balances are claimed by 63-year-olds and 65-year-olds, respectively. Consumers in their 60s also had the highest average personal loan balance of all age groups at $19,572 in Q2 2019, the same position they held in 2018. END
 TITLE: Americans in Their 60s Carry the Highest Average Personal Loan Debt CONTENT: Personal Loan Debt Lowest Among Consumers in Their Early 20s\n------------------------------------------------------------\nOn the other end of the spectrum, 20-year-olds carry the lowest average personal loan balance of any age at $3,367, according to Experian Q2 2019 data. They were followed by 21-year-olds and 22-year-olds, who had the second- and third-lowest balances, respectively.\nWhile 20-year-olds maintain the lowest average personal loan debt among adult U.S. consumers, their balances are rising. These consumers' average loan balance had the highest percentage growth at 10% year over year from Q2 2018. END
 TITLE: Americans in Their 60s Carry the Highest Average Personal Loan Debt CONTENT: Average Personal Loan Debt Increases by Age\n-------------------------------------------\nThe average personal loan debt for borrowers ages 43 to 81 was consistently above the national average of $16,529, according to Experian data. Indeed, personal loan balances tend to increase with age until age 82, when they begin to decline—the same year balances start to dip below the national average. END
 TITLE: Americans in Their 60s Carry the Highest Average Personal Loan Debt CONTENT: Consumers in Their 20s\n----------------------\nConsumers in their 20s carried an average personal loan balance of $6,901 in Q2 2019. That's up 10% from an average of $6,293 in Q2 2018, according to Experian data.\nSource: Experian Q2 2019 data END
 TITLE: Americans in Their 60s Carry the Highest Average Personal Loan Debt CONTENT: Consumers in Their 30s\n----------------------\nConsumers in their 30s had an average personal loan balance of $13,382 in Q2 2019. That's up nearly 5% from an average of $12,769 in Q2 2018.\nSource: Experian Q2 2019 data END
 TITLE: Americans in Their 60s Carry the Highest Average Personal Loan Debt CONTENT: Consumers in Their 40s\n----------------------\nThe average personal loan balance among consumers in their 40s was $16,763 in Q2 2019. That's up 1% from an average of $16,549 in Q2 2018 and is almost equal to the national average of $16,529.\nSource: Experian Q2 2019 data END
 TITLE: Americans in Their 60s Carry the Highest Average Personal Loan Debt CONTENT: Consumers in Their 50s\n----------------------\nThe average personal loan balance among consumers in their 50s was $18,390 in Q2 2019. That's slightly up from an average of $18,302 in Q2 2018.\nSource: Experian Q2 2019 data END
 TITLE: Americans in Their 60s Carry the Highest Average Personal Loan Debt CONTENT: Consumers in Their 60s\n----------------------\nConsumers in their 60s carried an average personal loan balance of $19,572 in Q2 2019. That's down 1% from an average of $19,744 in Q2 2018 but still tops all other age groups analyzed here.\nSource: Experian Q2 2019 data END
 TITLE: Americans in Their 60s Carry the Highest Average Personal Loan Debt CONTENT: Consumers in Their 70s\n----------------------\nThe average personal loan balance among consumers in their 70s was $18,494 in Q2 2019. That's down 3% from an average of $19,146 in Q2 2018.\nSource: Experian Q2 2019 data END
 TITLE: Americans in Their 60s Carry the Highest Average Personal Loan Debt CONTENT: Consumers in Their 80s\n----------------------\nConsumers in their 80s carried an average personal loan balance of $14,571 in Q2 2019. That's down 6% from an average of $15,536 in Q2 2018.\nSource: Experian Q2 2019 data END
 TITLE: Americans in Their 60s Carry the Highest Average Personal Loan Debt CONTENT: Consumers in Their 90s\n----------------------\nThe average personal loan balance among consumers in their 90s was $13,899 in Q2 2019. That's down 1% from an average of $14,083 in Q2 2018.\nSource: Experian Q2 2019 data END
 TITLE: What Is an Identity Theft Affidavit? CONTENT: Where Can I Get an Identity Theft Affidavit Form?\n-------------------------------------------------\nIf you suspect you've fallen victim to fraud, it's recommended you immediately contact the Federal Trade Commission (FTC) to file a formal complaint. Through the FTC's IdentityTheft.gov website, you'll report what happened and the FTC will craft a \"recovery plan\" that helps guide you through the process of remedying your situation.\nOnce you provide the FTC with your information, you'll get an FTC Identity Theft Report, which among other things will include your Identity Theft Affidavit. This document will play a key role in providing official proof of the fraud when you go to dispute new accounts or marks on your credit.\nIn addition to the FTC's IdentityTheft.gov site, which guides you through the reporting process, the FTC provides consumers with a host of educational information on how to protect against identity theft.\nOther government agencies also provide guidance on identity theft, including the IRS, which outlines the process for reporting tax-related fraud; the U.S. Department of Justice, which provides statistics, research and resources on identity theft throughout the country; and USA.gov, which offers information and advice on different types of identity theft and scams.\nRegardless of which type of fraud you've fallen victim to, reporting your case to the FTC is a critical first step that will provide you with key resources—like your Identity Theft Affidavit—you may need when working through recovery. END
 TITLE: What Is an Identity Theft Affidavit? CONTENT: What Information Do I Need to File an Identity Theft Affidavit?\n---------------------------------------------------------------\nTo complete the FTC's Identity Theft Affidavit, you need to provide personal data including your Social Security number, address and contact information. You also will need to provide your driver's license number or information from another government-issued ID.\nOnce you provide your personal data, you'll be asked to explain the details of the fraud committed, including some of the following details:\n*   Whether any of the personal information in your credit report is incorrect as a result of the fraud.\n*   Whether any new accounts or inquiries were listed in your credit reports as a result of the fraud.\n*   Details of any fraudulently opened accounts, or accounts that have been tampered with as a result of the identity theft.\nFinally, since an affidavit is an official statement, you'll need to declare whether you authorized anyone to use your information, whether you benefited in any way from the fraud, and whether you are willing to work with law enforcement if charges are brought against anyone found to have stolen your identity.\nThough you'll be asked if you are willing to work with police in the event charges are brought against someone, you don't actually need to file a police report to obtain an Identity Theft Affidavit. END
 TITLE: What Is an Identity Theft Affidavit? CONTENT: Do I Need an Identity Theft Affidavit to Report Fraudulent Use of One of My Accounts?\n-------------------------------------------------------------------------------------\nIn most cases, an Identity Theft Affidavit is not needed to report fraud on any of your accounts. They are typically used to dispute new accounts that have been opened in your name. However, your lender may require you to fill out a Identity Theft Affidavit in order for them to complete a fraud investigation on your account.\nEach creditor or business will have its own fraud protocols, and it's important you contact each one directly to see what they require when reporting identity theft or fraud. In some cases they may want a police report and may even ask for a notarized Identity Theft Affidavit. In other cases, they may resolve the fraud internally without additional documentation.\nEven if you have not reported the fraud to the FTC or police, if you've noticed anything unusual on any of your existing accounts, or found new accounts that are not yours, contact the companies immediately to create a record of your situation. If fraud has occurred on an existing account, the lender will likely close the account and issue you a new account number, which should help protect you by ensuring the fraud does not continue. END
 TITLE: What Is an Identity Theft Affidavit? CONTENT: Can I Use the FTC's Identity Theft Affidavit to Report Tax Fraud?\n-----------------------------------------------------------------\nIf any of your personal information was used for tax-related fraud, you will need to fill out the IRS Identity Theft Affidavit, known as Form 14039. This will help you resolve any IRS-related issues you may be experiencing due to identity theft. You can submit Form 14039 online as part of the FTC report process on IdentityTheft.gov.\nYou could be a victim of tax fraud and not even know it, so be on the lookout throughout the year for signs your identity may have been stolen. Common signs of tax fraud include:\n*   Finding that your tax return has already been filed by someone else.\n*   Receiving a tax form from an unknown employer.\n*   Receiving a tax return you didn't expect.\n*   You received a phone call from the IRS demanding payment. END
 TITLE: What Is an Identity Theft Affidavit? CONTENT: How to Prevent Identity Theft\n-----------------------------\nUnfortunately, you can't always prevent identity theft. With so much personal information being exchanged, and so much data falling into the hands of fraudsters, the risk of identity theft is greater than ever.\nThe first step to protecting yourself is being cautious about when and with whom you share your personal data. The less of your information that is out there, the lower the chances a fraudster gets their hands on your data. Stay away from shady websites and links and create secure passwords to make it harder for anyone to hack your accounts; take note of whether site or link URLs contain \"https,\" which indicates that the site is secure.\nUsing a credit monitoring service can help you notice identity theft or fraud as soon as possible. Credit monitoring will alert you of changes to your credit reports, which can tip you off about suspicious activity. If a new account appears in your credit file, or you see that one of your accounts has an inaccurate balance, this could be due to a fraudster obtaining your personal information.\nBy alerting you to these changes, credit monitoring enables you to act quickly to resolve any fraud that occurs. You can get free credit monitoring from Experian. END
 TITLE: Only Half of All Student Loans Are Currently In Repayment CONTENT: Only About Half of Outstanding Student Loans Are in Repayment\n-------------------------------------------------------------\nWhen it comes to federal student loans, 56% of the total balance—$722 billion—was in repayment as of the third quarter (Q3) of 2019, according to DOE data. Federal student loans totaled $1.3 trillion in Q3 2019, according to the DOE.\nLoans are considered in repayment when accounts are active and payments are being made. In the third quarter of 2018, just 53% of the balances were in repayment.\nThe total of all student loan debt—including public and private loans—is over $1.4 trillion, according to Experian. Consumers carried an average of $35,620 in student loan debt as of the second quarter of 2019.\n\\*Source: Experian data. All data from Q2 of each year. END
 TITLE: Only Half of All Student Loans Are Currently In Repayment CONTENT: More Student Loan Debt Entering Forbearance\n-------------------------------------------\nOf the debt that isn't currently being paid back, more of it is being put in forbearance. Forbearance is a method borrowers can use to delay repayment of federal student loans due to financial hardship. Forbearance relief must be applied for and is granted based on a borrower's financial situation. Loans in forbearance still accrue interest.\nA total of $129 billion (10%) of the outstanding student loan debt is currently in forbearance, according to data from the DOE. That figure has grown in the past two years, increasing two percentage points since 2017. END
 TITLE: Only Half of All Student Loans Are Currently In Repayment CONTENT: Student Loan Deferment Down Slightly\n------------------------------------\nDeferment is similar to forbearance—it's a way to temporarily suspend payments due to financial hardship. While in deferment, however, borrowers may not have to pay interest that accrues on certain types of loans.\nThe total amount of student loan debt currently in deferment is $127 billion (9.8%), according to DOE data. This amount is down one percentage point from Q3 2017. END
 TITLE: Only Half of All Student Loans Are Currently In Repayment CONTENT: Student Loan Defaults Continue to Climb\n---------------------------------------\nThe share of total student loan debt that is in default, or significantly past due, continues to grow. As of Q3 2019, 12% of federally managed student loans—$155 billion—were in default, according to DOE data. That's up one percentage point from the same time last year and two percentage points since 2017.\nA federal student loan is considered delinquent the first day after a borrower misses a payment. If a loan continues to be delinquent, the DOE considers the loan in default. The timeline for designating a loan in default varies depending on the type of loan the borrower has.\nWhen compared with the number of delinquencies across all credit products in the U.S.—which in the past five years have gone down—the increasing amount of student loan debt in default is notable. END
 TITLE: Only Half of All Student Loans Are Currently In Repayment CONTENT: Grace Period and In-School Round Out Non-Repayment Loan Numbers\n---------------------------------------------------------------\nThe remaining outstanding loans not currently in repayment are spread between borrowers who are still in school and those in their grace period—the period of time after school when borrowers are not yet required to pay back their loans.\nA total of $114 billion (9%) in student loans were held by borrowers currently enrolled in school. Another 3% of outstanding student debt—$37 billion—is held by borrowers in a grace period, according to data from the U.S. Department of Education. END
 TITLE: Only Half of All Student Loans Are Currently In Repayment CONTENT: Alternatives to Payment Can Be Helpful, but Should Be Avoided\n-------------------------------------------------------------\nWhile alternatives to student loan repayment can be helpful in dire situations, it's best in the long term if borrowers can find a way to pay their loans without taking any time off. Particularly with defaulting or putting loans in forbearance, the consequences can be costly.\nDuring forbearance, borrowers can rack up thousands of dollars in interest while not paying anything toward the loan principal. For some loans, deferment can also mean racking up interest.\nThe approval processes for these two payment alternatives differ, and depending on the type of deferment or forbearance, so do the applications and documentation. Borrowers interested in learning more about deferment and forbearance can visit the DOE's Federal Student Aid website. To get more information about applying for either payment alternative, they can contact their loan servicer.\nWhen it comes to default, missing payments and owing creditors should be an absolute last option. Missed payments are reported to credit bureaus and can have a serious impact on credit scores. Borrowers who are in default or have missed payments in the past should get a free copy of their credit reports and credit scores from Experian to see how the delinquency has affected their scores. END
 TITLE: Credit Scores Lower in States With High Ratios of Delinquent Accounts CONTENT: Consumers in Louisiana Have Highest Ratio of Delinquent Credit Accounts\n-----------------------------------------------------------------------\nWhen it comes to states with the highest ratio of delinquent credit accounts to total credit accounts, Louisiana tops the charts with one in three consumer accounts being delinquent—28.3% in Q2 2019, according to Experian data. That's more than 10 percentage points higher than the national Q2 2019 average of 18%.\nWest Virginia, Oklahoma, Mississippi and South Carolina followed Louisiana as the states with the highest ratio of delinquent to total credit accounts.\n\\*Source: Experian Q2 2019 data END
 TITLE: Credit Scores Lower in States With High Ratios of Delinquent Accounts CONTENT: Minnesota Consumers Have Lowest Ratio of Delinquent Accounts\n------------------------------------------------------------\nMinnesota is home to the consumers with the lowest ratio of delinquent credit accounts to total credit accounts, according to Experian data. In Q2 2019, just over 10% of consumers' average total accounts in the state were delinquent.\nSouth Dakota, Vermont, New Hampshire and Hawaii follow Minnesota as the states with the lowest ratio of delinquent to total credit accounts.\n\\*Source: Experian Q2 2019 data END
 TITLE: Credit Scores Lower in States With High Ratios of Delinquent Accounts CONTENT: Nevada Is Most-Improved State for Late Payments\n-----------------------------------------------\nCompared with Q2 2014, consumers in Nevada saw the largest decrease in their ratio of delinquent credit accounts to total accounts, according to Experian data. In the five-year period, these consumers lowered their ratio of delinquent to average total credit accounts by 17.2%.\nWhile consumers in Nevada had the biggest reduction in late payments over the past five years, the state's 40% delinquency ratio still outranks most of the country. Mississippi and West Virginia, other states where delinquency rates dropped significantly, also continued to rank among the states with the most late payments in Q2 2019.\n\\*Source: Experian Q2 2019 data END
 TITLE: Credit Scores Lower in States With High Ratios of Delinquent Accounts CONTENT: States With More Late Payments Have Lowest Credit Scores\n--------------------------------------------------------\nPayment history is the most important factor when it comes to calculating your credit score. That's why it's no surprise consumers had lower average credit scores in states with a higher ratio of delinquent credit accounts to total credit accounts.\nLouisiana had the highest ratio of delinquent to total average credit accounts in Q2 2019. The state's average FICO® Score—677—was also the second-lowest in the nation, surpassing only Mississippi, which had an average score of 667.\n\\*Source: Experian Q2 2019 data\nOn the other end of the spectrum, Minnesota had the highest average FICO® Score of 733 in Q2 2019, according to Experian data. The state also had the lowest ratio of delinquent credit accounts to total accounts of any state. While it is impossible to say for sure that the ratio of late payments is responsible for Minnesota's top average credit score, other states with low delinquency ratios typically have top-tier credit scores.\nIn South Dakota and Vermont—the states with the second- and third-lowest delinquency ratios, respectively—consumers' FICO® Scores were significantly above the national average of 703 in Q2 2019. The top three states with the fewest late payments also had average FICO® Scores in the top 10% of all states.\n\\*Source: Experian Q2 2019 data\nLooking across the country, it's clear that in places where delinquency ratios were higher, credit scores were lower. While this does not necessarily mean that the late payments are driving the low scores, it reinforces the importance of payment history and shows how paying late or missing payments—at least in part—can affect a credit score. END
 TITLE: How Does Repossession Work? CONTENT: When Can a Vehicle Repossession Happen?\n---------------------------------------\nRepossession can occur as soon as you default on repayment. Your loan contract will define what the lender considers a loan default, but it can be triggered by missing just one payment.\nThough a loan contract may give a lender the right to take your car away after you default, the lender will typically will alert you of your missed payments and attempt to collect payment prior to repossessing the vehicle.\nWhen a vehicle owner is in default and is non-responsive to the lender's attempts to remedy the missed payments, the creditor may choose to repossess the vehicle. In most states, the law doesn't require lenders to provide advance notice of a repossession, which means they can come and take your vehicle at any time once you're in default.\nRepossession could also occur as a result of not having proper insurance for your vehicle. Though at least basic auto insurance is required in all states, if you allow your insurance policy to lapse, your lender may consider this a reason to repossess your car. Lenders have an interest in protecting their investments, and since they hold your vehicle as collateral for your loan, a car without insurance poses potential risk. END
 TITLE: How Does Repossession Work? CONTENT: How Long Does a Repossession Stay on Your Credit?\n-------------------------------------------------\nRepossessions are considered derogatory marks and typically remain in your credit file for seven years from the date you stopped paying your loan. Repossessions—like bankruptcies and collection accounts—are red flags in credit reports and can have a serious impact on your scores.\nIn addition to the repossession being listed in your credit report, failing to pay your auto loan on time may trigger other negative marks in your credit. For each month you are 30 or more days past due, the lender can report the account as delinquent. And if the account was sent to a collection agency, a record of the collection account may also appear in your reports.\nOn its own, a repossession can cause your score to plummet. Combined with the additional negative dings, a repossession could cause years-long damage to your credit that may hamper your borrowing abilities in the future.\nFinally, it's important to remember that even after a repossession, you may owe what's called a deficiency balance. This is any loan amount left over after a lender liquidates your collateral (in this case, usually by selling your car at auction). If your outstanding loan balance is more than the lender is able to get for your car, you will be on the hook for the remaining amount. END
 TITLE: How Does Repossession Work? CONTENT: What to Do if You're in Danger of a Repossession\n------------------------------------------------\nDepending on the details of your loan agreement, you could be in danger of repossession after missing just one payment. The best course of action is to make all your payments in full and on time to avoid possible repossession.\nIn the case you do fall behind and risk repossession, here are a few things you could do in advance of losing your car:\n*   **Contact your lender.** If you do fall behind on your auto loan, reach out to the lender to discuss what options you may have. There is a chance your lender will allow you to defer your loan payments for a period of time or help you come up with another solution to allow you to keep your car. Communicating with your lender—ideally before you miss a payment—shows good faith as you try to remedy your situation.\n*   **Refinance your car loan.** If you're struggling to pay your auto loan, refinancing may help get your payment to an affordable level so you can continue to pay on time. Refinancing entails paying off your current auto loan with a new one, ideally at a lower interest rate. If approved for a new loan, refinancing could help you avoid repossession by satisfying what you owe on your existing loan and starting fresh with a new lender.\n*   **Consider a voluntary surrender.** If you're notified in advance of a repossession and can't find a way to cover your outstanding balance, consider voluntarily turning the car over to your lender. Voluntarily surrendering your car could help you avoid the stress of repossession, and may be slightly less negative on your credit report.\n*   **Know your state's law.** If you live in a state where the law requires lenders to notify owners before a repossession, you may receive a warning prior to your car being taken away. Most state laws also require lenders to follow specific processes, such as notifying you after the repossession and alerting you when they plan to sell the vehicle. It's helpful to know your state's laws to make sure your lender is following all the correct legal steps. To find more information about repossession laws in your state, check with your state's attorney general's office.\nIf you've recently had your car repossessed or expect it might happen in the future, consider getting a free copy of your credit report and FICO® Score☉ from Experian to see how the repossession has impacted your credit. END
 TITLE: Baby Boomer Mortgage Debt Growing Slower Than Any Other Generation CONTENT: Baby Boomers Carry the Third-Highest Mortgage Debt\n--------------------------------------------------\nOf all generations of adult consumers in the U.S., baby boomers—people between ages 55 and 73—were right in the middle in average mortgage balances in Q2 2019, according to Experian data. Their balances are 13% lower than the national average and 26% less than members of Generation X, who carried the highest individual mortgage debt in Q2 2019.\n\\*Source: Experian END
 TITLE: Baby Boomer Mortgage Debt Growing Slower Than Any Other Generation CONTENT: Mortgage Debt Growing Slower Among Boomers\n------------------------------------------\nBaby boomer mortgage debt is growing at a slower pace than that of any other generation. In fact, since Q2 2018, baby boomers' average mortgage balance only changed by a fraction of a percent, increasing by 0.27%, from $174,399 to $175,865.\nWhen looking at mortgage balances over the past seven years, baby boomers were the only group that saw mortgage debt decrease. Since the second quarter of 2012, baby boomers' average mortgage balances shrank by 2%, while nearly all generations (Generation Z was not counted in this analysis due to their age) saw their balances grow, according to Experian data. END
 TITLE: Baby Boomer Mortgage Debt Growing Slower Than Any Other Generation CONTENT: Baby Boomer Average Mortgage Debt Highest in Washington, D.C.\n-------------------------------------------------------------\nMembers of the baby boomer generation hold the most mortgage debt in Washington, D.C., carrying an average home loan balance of $356,256 in Q2 2019. While that figure is 75% higher than the national mortgage debt average, it is 15% lower than the average among all generations in the District of Columbia, which was $416,848 in Q2 2019.\nWashington, D.C., was followed by California, Hawaii, Colorado and Maryland, which together make up the top five states where baby boomers carry the highest mortgage debt.\n\\*Source: Experian data from Q2 2019. Data is specific to baby boomer debt and credit. END
 TITLE: Baby Boomer Mortgage Debt Growing Slower Than Any Other Generation CONTENT: West Virginia Baby Boomers Carry Lowest Average Mortgage Debt\n-------------------------------------------------------------\nBaby boomers in West Virginia carry the lowest average mortgage debt of any other state, with an average mortgage balance of $92,034, according to Experian data from Q2 2019. That's 55% less than the national average and 15% less than the average mortgage balance across all generations in West Virginia.\nIn all of the five states with the lowest balances—West Virginia, Indiana, Mississippi, Puerto Rico and Ohio—baby boomer average mortgage debt is consistently at least 50% lower than the national average across all generations.\n\\*Source: Experian data from Q2 2019. Data is specific to baby boomer debt and credit. END
 TITLE: Baby Boomer Mortgage Debt Growing Slower Than Any Other Generation CONTENT: Mortgage Debt One of Few Baby Boomer Balances Seeing Significant Slowing\n------------------------------------------------------------------------\nThough baby boomers have higher debt balances when compared with other generations—including average debt on student loans, auto debt, credit cards and personal loans—in the past year, the growth of much of their debt has slowed or even decreased. With the exception of student loan debt and mortgage balances, overall, certain baby boomer debts have only crept up (in most cases by less than .5%) since Q2 2018, while other generations have seen considerable growth in similar areas. In addition to decreases in baby boomers' total average debt, the generation saw reductions in the average balances of home equity lines of credit (HELOCs) and a small drop in the average amount they owed in personal loans. END
 TITLE: Millennials See Credit Scores Increase, Despite Worry CONTENT: Millennials Worry About, and Want to Improve, Their Credit Scores\n-----------------------------------------------------------------\nWith such a large portion of millennials checking their credit scores frequently, it's obvious this generation is concerned about their credit. When asked, 51% of the millennials surveyed said they sometimes worry about their credit score. Even more, 59%, said they thought their credit scores were something they should work to improve.\nWhile it's clear a majority of the millennials surveyed think they should be improving their scores, just over half (53%) said they were proactive about doing so. And a majority (52%) said they would feel disappointed if their scores were to go down. END
 TITLE: Millennials See Credit Scores Increase, Despite Worry CONTENT: Millennial Credit Reality: Their Scores Are Growing Faster Than Any Generation's\n--------------------------------------------------------------------------------\nWith so many millennials focused and worried about their credit scores, their persistence with improving their credit status is evident when looking at how their average scores have changed over time.\nIn the past five years, millennials have seen their average FICO® Score☉ grow by 21 points, increasing from 647 in the second quarter of 2014 to 668 in the same quarter of 2019, according to Experian data. This is the largest increase of any generation for the same time period and shows that millennials are working to establish and build their credit. END
 TITLE: Millennials See Credit Scores Increase, Despite Worry CONTENT: What's Next for Millennial Credit Scores?\n-----------------------------------------\nFor millennials still looking to establish or build their credit scores, here are a few key tips to help improve credit scores:\n1.  **Apply for a line of credit to kickstart your credit history.** Having and using credit—like a credit card—is one of the best ways to build and establish history as a borrower. Learn more about how to get your first credit card to see how to use the payment method to help you build credit.\n2.  **Pay all bills on time.** Payment history is the most important aspect in calculating credit scores, so paying all bills on time is crucial for someone who wants to maintain a good credit score.\n3.  **Get credit for utility payments.** Historically, utility and telecom payments have not factored into your credit scores. But now with Experian Boost™† , you can get credit for on-time utility and telecom payments you've made using your checking or savings account. Experian Boost is a great option for millennials and people with a thin credit file looking to jumpstart or boost their credit score immediately. END
 TITLE: Top 25 U.S. Cities by Credit Score CONTENT: Some Retirees Are Living Their Best Life—in a Fiscally Responsible Way\n----------------------------------------------------------------------\nTwo retirement communities—The Villages in Florida and Sun City West in Arizona—landed spots near the top of the list. That may not be as surprising as it seems, as average credit scores tend to increase with age, hitting 700 at an average age of 54 and peaking at age 78. The high scores may reflect retirees' propensity to reduce their debt levels: These residents have the lowest debt levels of any cities on the list, though these also have the lowest average household income of any on the list. END
 TITLE: Top 25 U.S. Cities by Credit Score CONTENT: California Cities Dominate the List\n-----------------------------------\nOne in three cities on this list were situated in California, a state with a high cost of living and low housing affordability rate. Of those, the majority were in the Bay Area near San Francisco and Silicon Valley, where high-paying jobs are plentiful and the economy has been booming for the past decade.\nThe cities with the best credit scores are primarily wealthy suburbs of larger cities. While they tend to have higher home prices (and associated mortgages), residents also have the incomes and overall financial health to support them. END
 TITLE: Married Consumers Have Higher Credit Scores and Debt Than Single Adults CONTENT: While there is no direct connection between marriage and credit reports or scores—individual credit reports remain completely separate and spouses' scores do not impact each other—Experian data shows that those who are married tend to have higher credit scores.\nOverall, married adults had an average FICO® Score☉ of 715—56 points higher than single consumers whose average was 659, according to Experian data from Q2 2019. Over the past five years, FICO® Scores for married people have kept pace with the national average, increasing by seven points since Q2 2015. Single consumers saw a 10-point increase in that time.\nSource: Experian Q2 2019 data END
 TITLE: Married Consumers Have Higher Credit Scores and Debt Than Single Adults CONTENT: Married People Carry More Than Double the Debt of Singles\n---------------------------------------------------------\nFor many people, getting married can mean major changes in their finances. In fact, a Pew Research study found that 68% of Americans want to get married in the future, but cite the lack of financial stability as a reason they haven't done so.\nOn paper, married consumers have a starkly different financial profile than single adults. Americans who have tied the knot had over 120% more total debt on average in Q2 2019 than single borrowers, according to Experian data. Married consumers carried a total average debt of $112,627 in Q2 2019—that's over $61,000 more than the single consumer average and roughly $20,000 more than the national average debt load of $92,479.\nSource: Experian Q2 2019 data END
 TITLE: Married Consumers Have Higher Credit Scores and Debt Than Single Adults CONTENT: Single Consumers Have Twice as Many Delinquent Accounts\n-------------------------------------------------------\nEven though they have half as much debt, single consumers have a delinquent account ratio (the ratio of total accounts to delinquent accounts) that is more than double that of married consumers. Unmarried adults' delinquent account ratio of 32% was 14 percentage points higher than the national average of 18%. Married borrowers had a delinquency ratio of 15% in Q2 2019.\nSource: Experian Q2 2019 data END
 TITLE: Married Consumers Have Higher Credit Scores and Debt Than Single Adults CONTENT: Married Consumers Carry More Personal Loan, Credit Card Debt\n------------------------------------------------------------\nWhile overall debt was higher among married consumers, their personal loan and credit card balances especially stood out in comparison to single adults. Personal loan balances held by married borrowers totaled $18,799 in Q2 2019. That's 102% higher than the personal loan balances owed by single consumers, which was $9,314. The average credit card balance among married adults was $6,881—41% higher than single borrowers, who carried only $4,870.\nWhile the percentage difference in debt totals appears extreme, single consumer balances for personal loans and credit cards were both below the national average.\nSource: Experian Q2 2019 data END
 TITLE: Married Consumers Have Higher Credit Scores and Debt Than Single Adults CONTENT: Good Credit Often Means High Debt and On-Time Payments\n------------------------------------------------------\nThough married adults may carry more debt than single consumers, their better-than-average scores actually make sense. In most cases, according to Experian data, consumers with higher balances also have higher credit scores. Additionally, paying bills on time—which avoids records of delinquent accounts—can make a noticeably large difference in your average credit scores.\nWhether married consumers were more financially prepared before they tied the knot, or some aspect of marriage encouraged them to take new debt and manage it responsibly, the difference in scores between the two groups are distinct and could have valuable implications on how they get and interact with new credit. END
 TITLE: Baby Boomers’ Auto Debt Ranks High Among Generations CONTENT: Baby Boomers Carry Second-Highest Average Auto Debt\n---------------------------------------------------\nCompared with other generations, baby boomers across the U.S. followed only Generation X—who carried an average balance of $21,570—in average auto loan balances. Baby boomer balances were slightly higher than those of millennials and significantly more than the balances held by members of Generation Z and the silent generation.\n\\*Source: Experian Q2 2019 data END
 TITLE: Baby Boomers’ Auto Debt Ranks High Among Generations CONTENT: Baby Boomer Auto Debt Sees Slight Increase\n------------------------------------------\nBetween Q2 2018 and Q2 2019, baby boomers' auto loan balances increased just slightly. While only the silent generation experienced a decrease in average auto loan balances during this period, baby boomers' balances grew less than a quarter of a percent.\nSince 2012, however, baby boomers have seen their auto loan debt increase by 16%—which puts them in the middle of the road among generations, according to Experian data. That 16% increase brought baby boomer auto loan balances from an average of $16,118 to $18,759 over the seven-year period. END
 TITLE: Baby Boomers’ Auto Debt Ranks High Among Generations CONTENT: Baby Boomers in Texas Have Highest Auto Loan Balances\n-----------------------------------------------------\nTexas carries the second-highest auto debt across all generations, so it's no surprise that the state was also home to the baby boomers who owed the most on their vehicle loans. Baby boomers in Texas carried an average balance of $23,707 in Q2 2019, according to Experian data. Texas was followed by New Mexico, Wyoming, Oklahoma and Louisiana.\n\\*Source: Experian data from Q2 2019. Data is specific to baby boomer debt and credit. END
 TITLE: Baby Boomers’ Auto Debt Ranks High Among Generations CONTENT: Baby Boomers in Michigan Have Lowest Average Auto Debt\n------------------------------------------------------\nBaby boomers in Michigan carried an average auto balance of $14,496 in Q2 2019, according to Experian data. That's 23% lower than the national average for baby boomers and 25% lower than the average across the nation. Michigan was followed by Rhode Island, Massachusetts, Connecticut and New Jersey in lowest baby boomer auto debt.\n\\*Source: Experian data from Q2 2019. Data is specific to baby boomer debt and credit. END
 TITLE: Baby Boomers’ Auto Debt Ranks High Among Generations CONTENT: Growth of Baby Boomer Debt Slowing Across Most Credit Products\n--------------------------------------------------------------\nBaby boomers' auto debt burden is in line with their general debt patterns, as the generation carries the second-highest overall debt compared with other age groups. That said, as the group becomes older, growth in their overall debt is beginning to slow. Across nearly every type of debt—except student loans—baby boomer balances are growing at negligible rates. And when it comes to their personal loan balances and amount owed on home equity lines of credit, baby boomer debt is actually declining. In all, baby boomers' average total debt balances have decreased in the past year—from $98,991 in Q2 2018 to $96,984 in Q2 2019. END
 TITLE: Millennial Auto Debt Is Growing Faster Than Other Generations’ CONTENT: Millennials Follow Baby Boomers and Gen Xers in Average Auto Debt\n-----------------------------------------------------------------\nMillennial consumers carry the third-highest average auto loan debt of any generation, according to Experian data from Q2 2019. Members of Gen X carried the highest average auto loan debt, with an average of $21,570 per consumer, followed by baby boomers, who had an average auto loan balance of $18,759, as of Q2 2019.\n\\*Source: Experian Q2 2019 data END
 TITLE: Millennial Auto Debt Is Growing Faster Than Other Generations’ CONTENT: Millennial Auto Debt Saw Highest Increase Among All Generations\n---------------------------------------------------------------\nMillennial consumers saw the largest increase in their auto debt since 2012, with their average balance growing 28%, according to Experian data. Generation X also experienced a big jump in the past seven years, increasing their average consumer auto debt by 27%.\nCompared with Q2 2018, millennial debt saw the second-largest jump in auto loan debt, growing 3% to its current level. Generation Z—consumers between ages 18 and 22—experienced the largest increase in the same period, with auto balances growing by 5%. END
 TITLE: Millennial Auto Debt Is Growing Faster Than Other Generations’ CONTENT: Wyoming Has Highest Average Auto Balances Among Millennials\n-----------------------------------------------------------\nMillennials in Wyoming have the highest average auto loan balances among states, according to Experian data from Q2 2019. Wyoming millennials carry an average auto balance of $24,414, which is 34% higher than other millennial consumers across the country.\nThis finding is not surprising, as Wyoming also holds the highest auto loan balances of any other state across all generations, with consumers carrying an average of $24,368 in auto debt. The other states where millennial consumers had the highest balances were also in the top 10 in the nation for auto debt across all generations.\n\\*Source: Experian Q2 2019 data END
 TITLE: Millennial Auto Debt Is Growing Faster Than Other Generations’ CONTENT: Millennials in Michigan Have Lowest Average Auto Debt\n-----------------------------------------------------\nMichigan millennial consumers hold the lowest average auto loan balances among states, according to Experian data, at $13,768. That's 28% lower than the national average and 24% lower than the U.S. average among just millennials. Michigan is also the state with the lowest average auto loan debt across all generations.\nThe other states where millennials have the lowest auto loan balances are also states where consumers across all generations carried the lowest average auto debt in Q2 2019.\n\\*Source: Experian Q2 2019 data END
 TITLE: Millennial Auto Debt Is Growing Faster Than Other Generations’ CONTENT: Millennial Debt Is Increasing Across All Credit Products\n--------------------------------------------------------\nSimilar to the trends occurring across other millennial debt products, an increase in auto debt is not surprising for this generation. As millennials grow older, their overall debt is increasing. This is true when it comes to auto loans, student loans, credit cards and mortgage debt. END
 TITLE: Millennials vs Baby Boomers: Who Has More Credit Cards? CONTENT: Millennials' Credit Card Balances Are on the Rise\n-------------------------------------------------\nMillennials—consumers ages 24 to 39—may owe less and have fewer credit cards than baby boomers, but this pattern is quickly changing. Per credit card account, millennials carried an average balance of $1,527 in Q2 2019, compared with $1,447 per card for baby boomers, according to Experian data. And while total credit card debt grew just over 1% for baby boomers from 2015 to 2019, millennial credit card debt grew nearly 40% over the same time period.\nSource: Experian data\nThe further out millennials get from the financial crisis of the late-2000s—when they witnessed the effects of out-of-control debt—the more open they seem to be taking on new credit and debt.\nIn the past five years, millennials have seen their total debt grow the most of any generation: 58% from Q2 2015 to Q2 2019. Generation Z saw the second-largest increase (22%) in their total debt, followed by Generation X, whose debt grew by 10% since 2015. END
 TITLE: Millennials vs Baby Boomers: Who Has More Credit Cards? CONTENT: How Millennials Can Use Credit to Their Advantage\n-------------------------------------------------\nAs millennials begin to use credit cards more, it's important they know credit cards can be used to their advantage. When used properly, credit cards can help improve credit scores and can accumulate valuable rewards consumers can use for travel and other purchases.\nAs payment history is the most important aspect of a credit score, making all your credit card and other debt payments on time is key to achieving or maintaining a top score. Additionally, making sure you don't max your cards out will help keep your credit utilization—the second most important aspect of a credit score—in check.\nCurrently, millennials' credit utilization ratio—the total of all their balances compared to the total of all their credit limits—is at 36%. For a good credit score, aim to keep your utilization ratio to under 30%. As millennials add more cards to their wallet and their available credit grows (assuming they don't charge up their cards), this figure could shrink and ultimately help the generation's scores. END
 TITLE: What Is a Good Credit Score for a Student? CONTENT: What Is Considered a Good Credit Score?\n---------------------------------------\nCredit scores using the FICO® scoring model typically have a range of 300 to 850. For students—or anyone—a score of 700 or above is generally considered a good score.\nYour credit scores will depend on your credit history and how you've managed past debt. FICO® Scores☉ are the most popularly used credit scores and are calculated using a unique algorithm that weighs features of your credit reports to spit out your three-digit score.\nTo maintain or build a good credit score, you need to make sure you know which aspects of your credit report matter most in your credit score calculation. FICO® Scores are calculated by looking at the following five features of your credit report:\n*   **Payment history**: This is the most important factor in your credit score, and missing or late payments can have a serious impact on your score. As you begin or continue to build your credit, make sure to pay all your bills on time to avoid racking up any missed payments in your credit reports.\n*   **Credit utilization ratio**: This number is calculated by dividing the total amount of balances owed on your revolving credit accounts (such as credit cards) by the total amount of all your credit limits. Utilization can be volatile from month to month, and if you are just starting out with credit, it's good to be mindful of how much of your available credit you use each month. It's recommended to keep your utilization under 30%, or under 10% for the best credit scores.\n*   **Length of credit history**: This aspect may be tough for younger students, but the age of your credit history will always have an impact on your overall scores—and the longer your history, the better. Consider getting a credit card or asking a relative to add you as an authorized user on their card to help jump-start your credit history.\n*   **Recent activity**: This refers to the amount of new credit applications you've applied for in the past three to six months. A high number of applications in a short period of time might tell a lender that you're in a dire financial situation, so consider limiting the amount of applications you send in a short period of time.\n*   **Credit mix**: These are the different types of credit accounts you have in your credit file, such as a credit card, student loan, auto loan and the like. Students may struggle in this category, as younger consumers near the beginning of their credit journey may not have experience with many different types of loans. Though credit mix makes up a smaller part of your credit score, it's still something to think about as you begin to build more credit. END
 TITLE: What Is a Good Credit Score for a Student? CONTENT: Why Would a Student Want a Good Credit Score?\n---------------------------------------------\nFor students who are currently in school or planning to leave soon, having a good credit score can help you buy or lease your first car, rent your first apartment or get your first credit card—all things you may need as an emerging professional. Lenders use your credit score when considering you for new loans and also use it to determine your interest rates. People with top credit scores are often given the best interest rates on credit products and, as a result, can save tens of thousands of dollars of the course of their lives.\nIf you're a student and in the beginning phase of building your credit, it's important to remember that there is more to your credit than just your score. While it might be appealing to work to get the best score you can, now is a time to develop responsible habits and learn the skills needed to maintain good credit health over time.\nMany students have student loans, which can be a great place to start when building responsible financial habits. Make sure you know when your first student loan payment is due, and do everything you can to make loan payments on time to avoid incurring any late payments, which will negatively impact your credit report.\nIf you're a student and have a poor credit score, get a free copy of your credit report to understand what's bringing your score down. END
 TITLE: What Is a Good Credit Score for a Student? CONTENT: How to Start Building Credit as a Student\n-----------------------------------------\nIt's always good to start early when talking about building good credit. Many students have the advantage of time and should begin establishing credit as soon as possible so that by the time they really need credit, their score will be in a good place.\nIf you have no credit and need a place to start, consider becoming an authorized user on someone else's account or think about getting your own secured card to jump-start your credit history. END
 TITLE: Top 25 Cities With the Highest Average Auto Debt CONTENT: Texas Is Home to Nearly All Cities With Top Auto Loan Balances\n--------------------------------------------------------------\nOf the top 25 cities where consumers carry the highest auto loan debt, the Puerto Rican city of Guaynabo is the only city not located in Texas.\nMidland, Texas, topped the ranking with the most consumer auto debt, increasing 5% since the first quarter (Q1) of 2018 to an average balance of $33,847, according to Experian data. That's 76% higher than the national average of $19,231 and is more than double the debt carried by consumers in the city with the lowest amount of auto loan debt, Sterling Heights, Michigan.\nMidland was followed by Odessa, Mission, Montgomery and Magnolia—all cities located in Texas.\n\\*Source: Experian END
 TITLE: Top 25 Cities With the Highest Average Auto Debt CONTENT: Michigan Cities Carry the Lowest Average Auto Loan Balances\n-----------------------------------------------------------\nWhen it comes to cities with the lowest auto balances, Michigan is home to more than two-thirds of them—with just eight out of 25 cities located in other states. Consumers in Sterling Heights, Michigan, had the lowest average balance of $11,383 in auto debt in Q2 2019, according to Experian data. That's 41% lower than the national average and 66% lower than the average auto loan balance in Midland, Texas.\nSterling Heights was followed by Royal Oak, Michigan; St. Clair Shores, Michigan; Dearborn, Michigan; and Lakewood, New Jersey.\n\\*Source: Experian END
 TITLE: Top 25 Cities With the Highest Average Auto Debt CONTENT: Cities With High Auto Debt Have Below Average Credit Scores\n-----------------------------------------------------------\nWhen it comes to credit scores, most of the 25 cities with the highest auto debt had average FICO® Scores that were below the national average, according to Experian data from Q2 2019. Only eight cities had FICO® Scores that were above the national average of 703, while the other 17 cities had scores that were below.\nThe city of Weslaco, Texas, had the lowest average FICO® Score of the top 25 cities, at 640. This score placed Weslaco, along with nine others, in the lowest 10% of all U.S. cities when ranked by FICO® Scores.\nIn the cities with the least amount of auto debt, a reverse trend in FICO® Scores appeared: Only eight of the 25 cities had average scores that were below the national average. The other 17 cities had average scores that were above 703. Troy, Michigan, had the highest average FICO® Score of 750—a total of 47 points higher than the national average. END
 TITLE: Survey: Most Consumers Pay Back Balance Transfers During Promotional Period CONTENT: Most People Surveyed Transferred Balances to Take Advantage of a Promotion\n--------------------------------------------------------------------------\nThe majority of consumers surveyed (57%) said they got a balance transfer card to take advantage of a promotional offer, such as an interest-free period or a no-fee transfer. Balance transfer cards are most effective at saving consumers money when they come with a promotional introductory offer, so reacting to a good offer often will accompany the underlying reason to necessity.\nAmong the others asked, 35% said they chose a balance transfer card so they could close extra accounts—eliminating cards by consolidating balances. Otherwise, 28% said they transferred a balance because they had spent too much money and 25% said they did it to defer payments. END
 TITLE: Survey: Most Consumers Pay Back Balance Transfers During Promotional Period CONTENT: Nearly Two-Thirds of Consumers Paid Off Their Balance During Promotional Period\n-------------------------------------------------------------------------------\nOf those who opened a card with a promotional introductory offer—75% of respondents—almost two-thirds said they paid their transferred balances in full during the promotional period. This indicates consumers are using balance transfer cards wisely by clearing their balances before having to pay any interest on their outstanding debt. END
 TITLE: Survey: Most Consumers Pay Back Balance Transfers During Promotional Period CONTENT: 61% Paid a Balance Transfer Fee\n-------------------------------\nThough balance transfer cards can help save money on interest, other fees associated with transferring a balance can pile up. The most common cost is a balance transfer fee, which is usually a one-time payment of 3% to 5% of the total balance transferred, depending on the card.\nOf those surveyed, 61% reported being charged a balance transfer fee. The remaining portion—39%—said they didn't have to pay a fee, likely due to the fact that some balance transfer cards come with a promotional offer that allows fee-free balance transfers. END
 TITLE: Survey: Most Consumers Pay Back Balance Transfers During Promotional Period CONTENT: Low or 0% APR Was the Most Popular Intro Offer\n----------------------------------------------\nNot surprisingly, the most popular intro offer respondents reported getting with their new balance transfer card was a 0% APR period. With a 0% APR period, the cardholder pays no interest on purchases for a period of time (usually six to 18 months) before the card's standard APR kicks in. More than two-thirds—66%—of those surveyed said they received a 0% APR offer. Other offers respondents received included improved terms and conditions compared with their existing cards and reduced or low APRs for certain periods of time.\nUltimately, what consumers received when applying for their balance transfer cards was in line with what they set out for when looking for a card. One-third of survey respondents said their intent when looking for the card included wanting an improved APR. Others said they were looking for cards with low or no balance transfer fees. END
 TITLE: Survey: Most Consumers Pay Back Balance Transfers During Promotional Period CONTENT: Savings on Credit Card Interest Can Be Significant When Transferring a Balance\n------------------------------------------------------------------------------\nRegardless of whether a consumer gets a low A or 0% APR offer when applying for a balance transfer card, any reduction in interest will in most cases help the borrower save money over time. Consumers in the U.S. owed an average of $6,194 in credit card debt in the second quarter of 2019, according to Experian data. And the average interest rate for credit cards in the U.S. is just under 17%, according to the Federal Reserve—with some companies charging as high as 30% based on the consumers' creditworthiness.\nFor consumers on the higher end of the APR spectrum, and depending on how much they owe, transferring a balance to a low or 0% APR could mean saving thousands of dollars and shaving years off their repayment period.\nFor more information on balance transfer cards, see our articles on how to transfer a balance and find a card that's right for you. END
 TITLE: Can Someone Run a Credit Check Without My Permission? CONTENT: Who Can Access My Credit Report?\n--------------------------------\nWhen you apply for something—like a new line of credit, a new job or an apartment rental—the lender or business you're dealing with may want to look at your credit reports. They do this to evaluate your risk as a consumer and to gain insight into your past financial dealings. In these cases, most entities are required to ask for your permission before pulling your credit reports.\nThe following are examples of entities that often request permission to check your credit as a result of an application or initiation of some sort of business relationship:\n*   Banks and other lenders\n*   Utility companies\n*   Insurance companies\n*   Landlords\n*   Employers END
 TITLE: Can Someone Run a Credit Check Without My Permission? CONTENT: In most of the cases above, the entities will need your permission to request and view your credit reports. There are some situations, however, in which a business will check your credit through a soft inquiry, also known as a soft pull, to determine whether you're eligible for a preapproved offer. In many cases, businesses with a legitimate reason can initiate a soft pull without your permission. (If you've received a targeted credit card offer in the mail, it was probably a result of a soft pull by a lender.)\nSoft inquiries also occur when you check your own credit report or when you use credit monitoring services from companies like Experian. These inquiries do not impact your credit score.\nBeyond soft pulls, there are other situations in which an entity may not need your permission to check your credit. According to the FCRA, some of those situations could be:\n*   In response to a court order or federal grand jury subpoena\n*   In connection with your application for a license or other benefit granted by the government, when consideration of financial responsibility is required by law\n*   In connection with a child support determination, under certain circumstances\n*   In connection with a credit or insurance transaction not initiated by you, when a firm offer of credit or insurance is extended, and certain other restrictions are met\n*   For the purposes of a potential investor assessing the risk of a current obligation END
 TITLE: Can Someone Run a Credit Check Without My Permission? CONTENT: How Do I Know if My Credit Was Checked?\n---------------------------------------\nThere is a section in your credit reports that tells you exactly who has checked your credit and when. Periodically monitoring your credit can help you understand who is looking at your credit reports and can help you make sure that no one is requesting your personal information without your permission. It can also help you avoid letting any fraudsters open bogus accounts under your name.\nYou can learn more about how to read your credit reports and can get a free copy of your credit reports and scores through Experian to learn more about how many inquiries, if any, appear in your credit file. END
 TITLE: Can Someone Run a Credit Check Without My Permission? CONTENT: How Does a Credit Check Affect My Credit Score?\n-----------------------------------------------\nChecking your own credit does not affect your credit score. Pulling your own reports is considered a soft inquiry and will not impact your score. Hard inquiries—or ones that are triggered by a new credit application—remain in your credit reports for up to two years and have the potential to impact your score. The effect they have on your score will depend on other features of your credit, but typically the impact, if any, will disappear or diminish within one year. END
 TITLE: Can Someone Run a Credit Check Without My Permission? CONTENT: What Can I Do to Keep Someone From Getting My Credit Report?\n------------------------------------------------------------\nBe vigilant and make sure to check your credit often so you know who is viewing your credit reports. This can help you keep track of your credit applications and can also protect you from fraud, as a new hard inquiry could indicate that a fraudster tried to open an account in your name.\nMake sure you read all the fine print when applying for products or services and when inquiring about new credit. It may be unclear when a hard inquiry will be recorded as a result of an application or request, so it's helpful to read carefully to make sure you're not racking up inquiries without knowing it.\nIf you're not sure who has checked your credit it the past two years, get a free copy of your credit report from Experian to see what appears. You can also check out Experian's CreditWorksSM product to learn how you can periodically monitor your credit file and be alerted when changes occur in your credit file. END
 TITLE: Chase Announces New Freedom Flex℠ Card and Updates to Freedom Unlimited® CONTENT: Chase Introduces the Chase Freedom Flex℠ Card\n---------------------------------------------\nThe newest addition to the Chase credit card family, the Chase Freedom Flex℠ is a Mastercard offering that provides cardholders the opportunity to earn cash back rewards across numerous spending categories. New cardholders can receive $200 cash back after using the card to make $500 in eligible purchases within their first 3 months with the card.\n[](;site=exp&placement=ae-single-embed&sessionid=015004BA-F737-C694-8168-94347B4A7C8D&pageid=blogs:ask-experian:chase-announces-new-freedom-flex-card-and-updates-to-the-cash-back-on-freedom-unlimited&previouspageid=&ecsstaticid=48120C48-8C1D-12B1-C3D8-97F03B93B216)\n[Apply](;site=exp&placement=ae-single-embed&sessionid=015004BA-F737-C694-8168-94347B4A7C8D&pageid=blogs:ask-experian:chase-announces-new-freedom-flex-card-and-updates-to-the-cash-back-on-freedom-unlimited&previouspageid=&ecsstaticid=48120C48-8C1D-12B1-C3D8-97F03B93B216)\non Chase's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nChase Freedom Flex℠\n-------------------\nAPR\n14.99% - 23.74% Variable\nIntro APR\n0% Intro APR on Purchases for 15 months\nRewards\n5% cash back on Rotating Categories\n5% cash back on Travel\n3% cash back on Dining\n1% cash back on All Other Purchases\n**Intro Bonus**\nEarn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening. And earn 5% cash back on grocery store purchases (not including Target® or Walmart® purchases) on up to $12,000 spent in the first year.\n##### Card Details\n*   Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening.\n*   Earn 5% cash back on grocery store purchases (not including Target® or Walmart® purchases) on up to $12,000 spent in the first year.\n*   Earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Enjoy new 5% categories each quarter!\n*   Earn 5% on Chase travel purchased through Ultimate Rewards®, 3% on dining and drugstores, and 1% on all other purchases.\n*   No annual fee.\n*   0% Intro APR for 15 months from account opening on purchases, then a variable APR of 14.99 - 23.74%.\n*   No minimum to redeem for cash back. Cash Back rewards do not expire as long as your account is open.\nThe Chase Freedom Flex℠ will be available starting September 15, 2020, and will offer the following rewards:\n*   5% cash back on up to $1,500 in combined purchases in rotating quarterly categories when you activate\n*   5% cash back on travel purchased through the Chase Ultimate Rewards portal\n*   3% cash back on dining, including eligible delivery services\n*   3% cash back at drugstores\n*   1% cash back for all other purchases\nIn addition to these core rewards, cardholders will also have access to the perks offered by the World Elite Mastercard® benefits program when you use the Freedom Flex℠ card, including:\n*   **Cellphone insurance**: Get up to $800 per claim and $1,000 per year for each phone listed on the cardmember's monthly bill when they pay their bill with the eligible card. This insurance can be used to protect against theft and damage. While you can only use this benefit twice in a 12-month period, the deductible is relatively low at $50.\n*   **Lyft credit**: Receive an automatic $10 credit on your next ride after taking five rides in a calendar month. Limit of one credit per month.\n*   **Free ShopRunner membership**: Get free two-day shipping and returns at certain participating retailers.\n*   **Boxed 5% cash back**: Earn 5% cash back on Boxed purchases to be used toward future purchases.\n*   **Fandango Double VIP+ points**: Earn Double VIP+ points when you purchase movie tickets through the Fandango app or Fandango.com. VIP+ points can be used to purchase movie tickets on Fandango or for streaming using FandangoNOW. END
 TITLE: Chase Announces New Freedom Flex℠ Card and Updates to Freedom Unlimited® CONTENT: Updates for Existing Chase Freedom Unlimited® Cardholders\n---------------------------------------------------------\nEarlier this summer, Chase announced updated rewards earnings and an increased sign-up bonus for new Chase Freedom Unlimited® cardholders. You'll get $200 cash back after spending $500 on eligible purchases in your first 3 months with the card.\n[](;site=exp&placement=ae-single-embed&sessionid=015004BA-F737-C694-8168-94347B4A7C8D&pageid=blogs:ask-experian:chase-announces-new-freedom-flex-card-and-updates-to-the-cash-back-on-freedom-unlimited&previouspageid=&ecsstaticid=48120C48-8C1D-12B1-C3D8-97F03B93B216)\nChase Freedom Unlimited®\n------------------------\n[Apply](;site=exp&placement=ae-single-embed&sessionid=015004BA-F737-C694-8168-94347B4A7C8D&pageid=blogs:ask-experian:chase-announces-new-freedom-flex-card-and-updates-to-the-cash-back-on-freedom-unlimited&previouspageid=&ecsstaticid=48120C48-8C1D-12B1-C3D8-97F03B93B216)\non Chase's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nChase Freedom Unlimited®\n------------------------\nAPR\n14.99% - 23.74% Variable\nIntro APR\n0% Intro APR on Purchases for 15 months\nRewards\n3% cash back on Dining & Drugstores\n1.5% cash back on All Other Purchases\n**Intro Bonus**\nEarn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening. And earn 5% cash back on grocery store purchases (not including Target® or Walmart® purchases) on up to $12,000 spent in the first year.\n##### Card Details\n*   Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening.\n*   Earn 5% cash back on grocery store purchases (not including Target® or Walmart® purchases) on up to $12,000 spent in the first year.\n*   Earn unlimited 1.5% cash back on all other purchases.\n*   Earn 5% on Chase travel purchased through Ultimate Rewards®, 3% on dining and drugstores, and 1.5% on all other purchases.\n*   No annual fee.\n*   0% Intro APR for 15 months from account opening on purchases, then a variable APR of 14.99 - 23.74%.\n*   No minimum to redeem for cash back. Cash Back rewards do not expire as long as your account is open.\nStarting September 15, 2020, existing cardholders will also earn the following rewards:\n*   5% cash back on travel purchased through Chase Ultimate Rewards portal\n*   3% cash back on dining, including eligible delivery services\n*   3% cash back at drugstores\nThe 1.5% cash back earnings on other purchases remains the same.\nChase Freedom Flex℠ and Chase Freedom Unlimited® cardholders will continue to receive the previously announced Lyft and DoorDash benefits, which include:\n*   5% cash back on Lyft rides through March 2022\n*   A complimentary DoorDash DashPass for the first three months (with activation by Dec 31, 2021), followed by a 50% discount on the current rate for the following nine months\nWhat to Know Before Applying for a Chase Card\n---------------------------------------------\nChase offers some of the best rewards cards on the market, with valuable points redemptions through the Ultimate Rewards portal or transfers to Chase partners. Before applying for a Chase card, however, it's important to understand where your credit stands.\nChase Freedom and Chase Sapphire cards require good to excellent credit for approval.\nIf you're curious what cards may be right for you based on your credit, check out the Experian CreditMatch™ tool to be paired with specialized card offers based on your FICO® Score☉ . If your credit score could use improvement, consider signing up for Experian Boost™† , which gives you credit for your on-time utility, telecom and Netflix® payments.\nYou'll also want to be sure you haven't opened more than five credit cards in the past 24 months. Chase has a policy called the 5\/24 rule that restricts consumers who have opened more than five credit card accounts in the past 24 months from being approved for a new Chase card.\nTo see how many credit card accounts you've opened in the past two years, check your credit reports to see what's listed there. You can get a free copy of your credit reports from Experian. END
 TITLE: Chase Announces New Freedom Flex℠ Card and Updates to Freedom Unlimited® CONTENT: What to Know Before Applying for a Chase Card\n---------------------------------------------\nChase offers some of the best rewards cards on the market, with valuable points redemptions through the Ultimate Rewards portal or transfers to Chase partners. Before applying for a Chase card, however, it's important to understand where your credit stands.\nChase Freedom and Chase Sapphire cards require good to excellent credit for approval.\nIf you're curious what cards may be right for you based on your credit, check out the Experian CreditMatch™ tool to be paired with specialized card offers based on your FICO® Score☉ . If your credit score could use improvement, consider signing up for Experian Boost™† , which gives you credit for your on-time utility, telecom and Netflix® payments.\nYou'll also want to be sure you haven't opened more than five credit cards in the past 24 months. Chase has a policy called the 5\/24 rule that restricts consumers who have opened more than five credit card accounts in the past 24 months from being approved for a new Chase card.\nTo see how many credit card accounts you've opened in the past two years, check your credit reports to see what's listed there. You can get a free copy of your credit reports from Experian. END
 TITLE: Top 10 States With the Highest Average Auto Loan Debt CONTENT: Texas Has the Second-Highest Average Auto Debt in U.S.\n------------------------------------------------------\nAuto loan debt recently reached a record high in the U.S., totaling $1.2 trillion in outstanding auto loan balances. In Q2 2019, Wyoming had the highest average consumer auto loan balance of any state, followed by Texas, New Mexico, Louisiana and Oklahoma. END
 TITLE: Top 10 States With the Highest Average Auto Loan Debt CONTENT: Michigan Consumers Have the Lowest Average Auto Debt\n----------------------------------------------------\nMichigan had the lowest auto loan balances of all 50 states, with consumers carrying an average of $14,698 in Q2 2019, according to Experian data. That's 31% lower than the national average and considerably lower than any of the top 10 states. Michigan was followed by Rhode Island, Massachusetts, Connecticut and New Jersey, which made up the five states with the lowest consumer auto debt. END
 TITLE: Top 10 States With the Highest Average Auto Loan Debt CONTENT: FICO® Scores in Wyoming Are Higher Than Average\n-----------------------------------------------\nAmong the top 10 states with the highest consumer auto loan debt, only two had average FICO® Scores that were greater than the national average. Alaska's average FICO® Score was 707, four points above the national average of 703. Wyoming had an average FICO® Score of 712, nine points higher than the national average and 32 points higher than Texas' average of 680, according to Experian data from Q2 2019.\nWhen it comes to consumers in the states with the lowest auto loan balances, as listed in the chart above, the average FICO® Scores were consistently above the national average. The lowest average FICO® Score among this group was 705, which is two points higher than the national average. The top FICO® Score among these states was in Vermont, where consumers had an average score of 726.\nThese high FICO® Scores are somewhat surprising considering consumers in higher credit tiers often carry more debt than their peers. An explanation could be in the average number of delinquencies each of these groups carry: The average number of delinquent tradelines among the top 10 states with the highest auto loan balances was 2.3 per consumer, while consumers in the 10 states with the lowest auto loan balances had an average of 1.7, according to Experian data from Q2 2019. END
 TITLE: What Is a Rewards Credit Card? CONTENT: How Rewards Credit Cards Work\n-----------------------------\nIdeally, rewards are a win-win for you and the credit card issuer. The issuer wants you to get in the habit of pulling its card from your wallet before any other card (and maybe start using it for transactions where you might normally use a debit card). To encourage you to do so, the issuer provides you with incentive credits, which take a variety of forms:\n### Cash Back Credit Cards\nThe most popular rewards cards offer a rebate—typically a credit to your account at the end of the year—proportional to the number of purchases made with the card. The most common cash back amount is 1%—a penny back for every dollar you spend—but 1.5% cards are gaining popularity.\nIn addition, \"luxury rewards\" cards with high borrowing limits and offered to individuals with excellent credit scores, offer rebates as high as 2%. Some rewards cards offer rotating categories so you can earn more cash back on different things each quarter—such as groceries or gas.\n### Travel Credit Cards\nCards affiliated with airlines or hotels can award anywhere from one to two flight miles for every dollar spent (1.25 miles-per-dollar and 1.5 miles per dollar are increasingly common). Awards may be higher when the card is used to purchase airline tickets—with the card's affiliated airline and, sometimes, even with other carriers. Mileage cards are very popular with business travelers, who use their cards to book reimbursable work trips, and then keep bonus miles for personal use.\nSome cards require bonus miles to be redeemed only with the affiliated airline; others let you fly with any carrier. Redemption of bonus miles may be subject to blackout dates or other exceptions, as detailed in the cardholder agreement. One example of a travel card is the Delta SkyMiles® Gold American Express Card.\n### Credit Cards With Points\nSometimes referred to as using terms such as \"bonus dollars,\" these are calculated the same way as cash-back rewards and bonus miles—typically a point for each dollar spent on the card—but they must be redeemed for items or services from a catalog specific to that card. Points customarily accumulate in real time—you don't have to wait until the end of the year to collect or use them—but they also may have expiration dates before which you must use them or lose them.\nDepending on the card, points may be redeemed for gift items, merchandise at affiliated retailer(s), stays at hotels, theme parks, or resort properties, or magazine subscriptions (a classic way to \"burn off\" leftover points before they expire). END
 TITLE: What Is a Rewards Credit Card? CONTENT: Bonuses\n-------\nMany cards offer special rewards bonuses on specific types of purchases. For example, some cards double or triple the number of credits you receive for booking flights directly through the airline, buying gasoline, or shopping at specific retailers.\nOther cards may increase the bonus percentage on specific purchases, such as a card with a standard 1% rewards rate offering a 5% reward on flight purchases.\nAn increasingly popular approach is \"rotating rewards,\" which provides deals on certain purchases every 90 days or so. You might get double rewards for instance, on gas purchases made during the summer, and on movie tickets purchased in the winter.\nSometimes these rewards are limited to specific retailers or vendors, other times they're more open-ended—but they only last a limited time, after which a new set of deals is made available. Details on how these deals work, and when they begin and end, are provided with card statements and on the card's website.\nMaking the most of rotating rewards takes some focus and discipline. Savvy users have developed techniques from web-calendar notifications to cell phone alarms to sticky notes as reminders of the special deals available. Smartphone apps provided by many card issuers can also help you take full advantage of these deals.\nCard issuers may also offer sign up or introductory bonuses with additional points for getting a new card and spending a certain amount in the first few months. For instance, the Chase Sapphire Reserve® offers 60,000 points after purchases of $4,000 within first 3 months from account opening. END
 TITLE: What Is a Rewards Credit Card? CONTENT: Card issuers may also offer sign up or introductory bonuses with additional points for getting a new card and spending a certain amount in the first few months. For instance, the Chase Sapphire Reserve® offers 60,000 points after purchases of $4,000 within first 3 months from account opening. END
 TITLE: What Is a Rewards Credit Card? CONTENT: Find the Card That's Right for You\n----------------------------------\nThe best approach to choosing a rewards card is to try to find one that gives the best value based on your normal spending habits. Look for a card that rewards what you already do, as opposed to one that'll make you increase your spending amounts or frequency in pursuit of points.\nChances are good some of the rewards offers you're receiving already align with this approach: retailers where you shop often, hotels you frequent, and travel services you use regularly are likely already sending offers your way. You can look for additional offerings in the Experian CreditMatch where you can be matched for free with cards based on your credit profile and spending habits.\nOnce you've narrowed the field to a short list, read the cardholder agreements that come with the cards. Use them to familiarize yourself with the specifics of its rewards program. Don't forget to compare credit card fees and annual percentage rates (APRs) as well. Rewards are great, but a lower interest rate can mean big savings as well over the life of a card. END
 TITLE: What Is a Rewards Credit Card? CONTENT: Questions To Ask Before Getting a Rewards Credit Card\n-----------------------------------------------------\nHere are the questions you should ask yourself to pick the right rewards card for you:\n### 1\\. What Types of Rewards Are Offered?\nThe most important question you'll want to ask when it comes to rewards cards is whether you want to get cash back in the form of statement credits or money deposited back into your bank account—or whether you want to earn rewards in the form of travel credits that will help you qualify for free or discounted flights or hotels.\n### 2\\. How Can You Maximize Your Rewards?\nNext, you'll want to consider how you spend your money so that you can maximize your rewards earning. Do most of your credit card spendings come from groceries and gas? If so, you'll want to look for a card that offers a higher percentage back on those purchases. Or, if you are a jet-setter, there are some cards that offer three times as many points on travel and dining purchases. If you don't want to think about how you spend your money, you might be better off with a card that offers a flat cash back rate.\n### 3\\. What Sign up Bonuses Can You Take Advantage Of?\nMany rewards cards offer sign-up bonuses. Find out what the bonus is, and how much you need to spend to qualify for it. Many cards will fulfill your bonus once you've spent a certain amount of money during the first few months of owning the card—the lower the minimum spend, the better.\n### 4\\. If and When Do Rewards Expire?\nAsk whether your rewards will expire or if they are usable as long as the account is open. You'll also want to check out if any blackout dates exist for any travel rewards.\n### 5\\. Is There an Annual Fee? If so, What Is It?\nYou'll want to consider how much you need to spend each year in order to make that fee back with rewards you will earn. END
 TITLE: What Is a Rewards Credit Card? CONTENT: Get the Most from Your Card\n---------------------------\nThe popularity of rewards cards has spawned a cottage industry in blogs and other websites dedicated to maximizing the accumulation of miles and points. For those with less time or dedication, the key to a good rewards-card experience lies in taking advantage of the bonuses while avoiding potential problems. Here are some guidelines that apply to any rewards card:\n### Don't Get in Over Your Head\nThe biggest potential risk connected with rewards cards may be the tendency to make extra purchases in order to gain extra points. Take care not to get spread too thin in your zeal for rewards.\nSwitching to a rewards card for purchases you'd normally make with a debit card, such as groceries or fuel, is fine as long as you plan to pay off those purchases in full each month. But \"big-ticket\" buys that push your rewards level to new heights could end up costing you in the long run if they lead to outstanding balances and interest charges on the purchases.\n### Coordinate an Intro Bonus with Major Purchases\nMany rewards cards offer a substantial number of points or miles (10,000, 20,000 or even 50,000) as an introductory bonus when you open your account, but only if you charge a minimum amount (such as $3,000, $5,000 or $9,000) within the first three months of signing up.\nA little planning ahead can help you make good use of these deals, without getting overextended: Apply for your rewards credit card three or four months before you plan to make a major purchase you've already saved for (booking a vacation, say, or buying furniture or appliances). Put the purchase on your new credit card, and then pay it off with your savings to help earn the intro bonus without incurring any finance charges.\n### Look for No-Fee Cards\nMany rewards cards come with annual fees. A typical sum is $95, though some are less, and others several times more. Credit card issuers often waive the fee for the first year, which makes it easy to overlook, but don't ignore it.\nAt a cash-back rate of 1%, it'll take $9,500 in purchases just to cover a $95 annual fee, so make sure you don't end up having to spend more cash than you get back. (Calculating the breakeven-point on mileage and points cards is trickier, but the same logic applies).\nIf your strategy is to pay the card off in full then cancel it before the annual fee kicks in, think again: Closing card accounts reduces your total available credit—a factor that can lower your credit scores. That doesn't mean you should never close an account, but your best bet, if possible, is to stick to no-fee cards. END
 TITLE: What Is a Rewards Credit Card? CONTENT: Applying For a Rewards Credit Card\n----------------------------------\nBe careful applying for cards in succession. When you apply for a new credit card, the card issuer typically requests your credit report—a process known as making a hard inquiry. A hard inquiry usually causes your credit scores to drop slightly. When a lender accepts your application and you open a new credit account, your scores typically dip a bit more.\nAs you long as you keep up with your payments, the scores typically rebound within a few months, and they may even increase somewhat, in recognition that you're successfully managing additional credit.\nMake sure you give your credit scores time to bounce back between card applications because if you apply during one of those temporary score-reduction periods, you'll be offered less attractive borrowing terms than you'll get when your scores are at their maximum.\nIf you invest a little time and research before you sign on, and choose a rewards card that suits your budget and spending habits, you can find a rewards credit card that helps you do more of what you like to do for less money. That's a real bonus. END
 TITLE: High Debt and Cost of Living Haven’t Hurt Hawaii’s Credit Scores CONTENT: Despite Debt, Hawaii Ranks as a Top State for Good Credit\n---------------------------------------------------------\nAmong all states, Hawaii has the seventh-best credit score of 723, according to Experian data from Q2 2019. The average score on the islands is 20 points higher than the national average score of 703 and only 10 points behind the top score in the nation, Minnesota's 733-point average.\nSince Q2 2015, Hawaii's average credit score has climbed eight points, matching the average increase seen nationwide during that time. This slow and steady average score increase emphasizes that Hawaiians have long been good at staying on top of their credit scores and that this increase is not abrupt or due to any sudden changes. END
 TITLE: High Debt and Cost of Living Haven’t Hurt Hawaii’s Credit Scores CONTENT: Consumers Manage High Debt Better in Hawaii Than in Any Other State\n-------------------------------------------------------------------\nThe largest contributing factor to a person's credit score is how good they are at paying all their bills on time. Hawaii—the state with the second-highest average debt balance in the nation—outperforms nearly every other state, especially those with high debt balances, when it comes to making on-time payments.\nHawaii had an average delinquency ratio of 11.9% in Q2 2019, according to Experian data; only three other states' ratios were lower. Delinquency ratios are calculated by comparing how many accounts have ever been delinquent (30 days or more past due) with how many total accounts a consumer has. Minnesota consumers had the lowest delinquency ratio, at 10.4%, followed by South Dakota (11.3%) and Vermont (11.8%).\nWhen compared with the top five states with the highest total debt amounts—among which Hawaii ranks second—the state's delinquency ratio is even more of a standout statistic. Washington, D.C., which had the highest total average debt of any state in Q2 2019, had a delinquency ratio that was nearly double that of Hawaii's.\nIn fact, all the other states in the top five had a delinquency ratio that was significantly higher than Hawaii's in Q2 2019. This trend illustrates that even in the face of high debt, consumers in Hawaii have not been deterred from achieving top scores, even though managing large debt balances has proven difficult for others.\nSource: Experian data from Q2 2019 END
 TITLE: High Debt and Cost of Living Haven’t Hurt Hawaii’s Credit Scores CONTENT: Hawaii's High Credit Limits Contribute to Top Scores\n----------------------------------------------------\nAnother major factor in a good credit score is the ability to maintain a low credit utilization ratio. Credit utilization is a comparison of a consumer's total outstanding credit debt with their total credit limit, expressed as a percentage. Consumers in Hawaii have the highest average credit limit in the U.S. at $52,936, according to Experian data from Q2 2019. That's more than $15,000 above the national average of $37,524.\nWhen a consumer has a high total credit limit, it's easier to carry higher credit card balances and still maintain a low credit utilization ratio. In Hawaii, this is appears to be the case, as consumers in the state carry the eighth-highest credit card balances, but still have stellar credit scores. END
 TITLE: High Debt and Cost of Living Haven’t Hurt Hawaii’s Credit Scores CONTENT: Mortgage Balances Account for Almost All Consumer Debt in Hawaii\n----------------------------------------------------------------\nHawaii's total debt levels are not extraordinary—the state's debt balance ranks 34th in the country—which makes sense given it ranks 40th in terms of state population. But even though its overall debt isn't high, some of the state's average consumer debt levels—like credit card and mortgage balances—are top in the nation.\nWhen it comes to housing, Hawaii is the most expensive place in the U.S. to buy a home, with the median home value coming in at $619,000—six times that of the median in West Virginia, the country's cheapest state for homes.\nOverall, Hawaii's total of $64 billion in outstanding mortgage debt makes up 86% of all major consumer debt there—that's the third-highest ratio in the country following California (87%) and the District of Columbia (90%), according to Experian data from Q2 2019.\nIndividually, consumers in the state owed an average of $345,963 in mortgage debt in Q2 2019. That's a 13% increase from the average of $306,585 they owed in the same quarter five years ago. The heavy mortgage burden Hawaiians deal with is the third-highest in the nation, and could be another factor contributing to consumers in the state having such good FICO® Scores on average.\nSource: Experian data from Q2 2019. Total debt figure includes only mortgage, bank card, auto and personal loan debt. END
 TITLE: High Debt and Cost of Living Haven’t Hurt Hawaii’s Credit Scores CONTENT: Hawaii's Average FICO® Scores Reflect Consumers' Relationship With Debt\n-----------------------------------------------------------------------\nThe fact that Hawaiians have the second-highest total average debt in the country and still maintain the seventh-highest average FICO® Score is no surprise, especially when you look at their relationship with debt. They have the highest overall limits—which means they can spend more without penalty—and they have the second-lowest delinquency ratio—which means they are repaying their debt better than nearly anyone in the country.\nThese two aspects of your credit—having a high overall credit limit and paying your bills on time—can be extremely helpful in having a good credit score. Hawaiians, with their average of 723, are an example of how this can work even in the face of a high cost of living. END
 TITLE: Boost Your Credit Score Using Netflix<sup>®<\/sup> Payment History CONTENT: What Is Experian Boost?\n-----------------------\nExperian Boost is a first-of-its-kind tool that can help improve your credit scores based on Experian data by giving you credit for past on-time payments for telecom, utility and now Netflix® accounts. Historically, consumer credit scores have not factored in these types of accounts, but with Experian Boost, you can now get the credit you deserve for paying these bills on time.\nSince Experian Boost launched in 2019, more than 4.3 million people have connected their accounts, helping boost credit scores by over 29 million points. Consumers who improve their scores using Experian Boost see an average spike of 13 points—enough to raise some scores to a higher credit score range. END
 TITLE: Boost Your Credit Score Using Netflix<sup>®<\/sup> Payment History CONTENT: How Can Experian Boost Help You Increase Your Score?\n----------------------------------------------------\nExperian Boost works by connecting to the account you use to pay your bills and searching for qualifying on-time bill payments. With your permission, those on-time payments are added to your Experian credit report, which can bolster your payment history and could help improve your FICO® Score. The entire process only takes about five minutes, and any boost to your score will be immediate.\nExperian Boost is especially helpful for people with little to no credit history, as these new records show evidence of on-time payments that otherwise wouldn't appear in credit reports. END
 TITLE: Boost Your Credit Score Using Netflix<sup>®<\/sup> Payment History CONTENT: What Accounts Can Be Added to Experian Boost?\n---------------------------------------------\nAccounts that can be added to your credit report with Experian Boost include utilities such as electricity and gas, telecom accounts such as cellphone and cable, and now Netflix®.\nYou will need at least three months of payment history within the past six months for the account to be added to your credit report. And don't worry if you've made a late payment or two: Experian Boost only adds on-time payments to your report.\nMany people may pay utility and phone bills and don't have many loans or credit accounts on their credit reports. By including utility and telecom payments using Experian Boost, a wider population of consumers can show positive payment history on their credit report. With the addition of Netflix® as a qualifying account, this pool grows even larger, giving more consumers the chance to boost their scores with payments they've already made. END
 TITLE: Boost Your Credit Score Using Netflix<sup>®<\/sup> Payment History CONTENT: Should I Try Experian Boost?\n----------------------------\nIf you've been making on-time payments toward utility, telecom or Netflix® bills, Experian Boost could be an easy way to increase your FICO® Score quickly. Experian Boost is free, and consumers who don't see an increase in their scores can easily disconnect their accounts if they want. If you have a Netflix® account but don't have many other lines of credit, now may be a perfect time to see if you can boost your score with your Netflix® payment history.\nYou can try Experian Boost by going to the Experian Boost sign-up page and creating a free account. Once you have an account, you'll be asked for your bank information and will follow the steps to search your account for qualifying payments—possibly seeing a FICO® Score increase in just a few minutes. END
 TITLE: What Is a Lien? CONTENT: How Does a Lien Work?\n---------------------\nWhen you offer collateral for a loan, the lender requires a guarantee that it can seize the property to recoup its loss if you default on your debt. A lien is the legal claim that helps creditors do this.\nThere are two main types of liens: consensual and involuntary. Consensual liens are ones you agree to, like what happens when you get a mortgage or car loan. Involuntary liens are those filed due to nonpayment of a debt, commonly when taxes go unpaid or payments on a loan become delinquent.\nTo understand how consensual liens work, consider your mortgage. When you buy a home with a mortgage, the lender retains the right to seize the home to recoup what they're owed until the loan is completely paid back. This legal claim is done through a mortgage lien that gets removed once you've paid off the debt.\nAn involuntary lien, on the other hand, is one filed by a creditor in pursuit of outstanding debt. Involuntary liens are typically placed on your assets by a court; they give a creditor legal claim to what they're owed and can result in foreclosure if they go unpaid.\nInvoluntary and consensual liens do essentially the same thing, but the difference is involuntary liens are considered derogatory as they are a result of nonpayment. Consensual liens—like your mortgage or auto loan—are just a side effect of borrowing, as they provide an avenue through which a debt can be collected if you default on your obligation. END
 TITLE: What Is a Lien? CONTENT: What Are the Different Types of Liens?\n--------------------------------------\nThere are several types of liens that can be filed against you. As mentioned, some liens are voluntary, and others don't require your consent because they're filed by a creditor as a result of nonpayment.\nThe following are the different lien types and the circumstance around how each are established:\n*   **Real estate lien**: A real estate lien is one that gives a creditor the right to seize and sell real estate property if someone defaults on an agreement. Mortgages are common real estate liens, and are an example of a voluntary lien that you agree to when you borrow money to buy a home.  \n    Additional liens can be placed against your real property, which can be both voluntary and involuntary. If you take out a second mortgage on your home, or use your home equity as collateral for another loan, a second (or third) lien would be recorded against that property. The lienholders (the creditors) in this case would be given priority based on when the lien was filed. Lien priority comes into play when you sell your home and also dictates who gets paid first if the property is ever liquidated or foreclosed.\n*   **Tax lien**: A tax lien is an involuntary lien that is placed on your property if you fail to pay state or federal taxes. Tax liens are given priority over all other liens, which means they must be paid first. Federal and state tax liens can be placed on assets including personal property. When left unpaid for extended periods of time, tax liens could result in the forced sale of your property, at which time all or some of the additional lienholders would be paid what they are owed from the proceeds of the sale.\n*   **Judgment lien**: A judgment lien is placed on your property or assets by a court that establishes you have an outstanding debt. Creditors that can prove you defaulted on an agreement and owe them money can file judgment liens in local courts. As with other liens, if your property is sold the lienholders will be paid from the proceeds of the sale.\n*   **Mechanic or construction lien**: Liens of this type must be filed through court and are placed against real property for which a contractor or subcontractor has performed work and was not paid by the property owner. A construction or mechanic lien can only be placed on the property the creditor worked on. END
 TITLE: What Is a Lien? CONTENT: What Happens if I Don't Pay a Lien?\n-----------------------------------\nIf a debt obligation goes unpaid for long enough, you risk losing the property the lien applies to. An unpaid mortgage lien, for instance, can result in foreclosure if you do not satisfy the outstanding debts. Once paid, individual liens will be removed from your property. If left unpaid, creditors can choose to move forward with a foreclosure, which would force the sale of the property and pay all lienholders from the proceeds of the sale (if there is enough to satisfy all of the lien amounts).\nIn many cases, non-mortgage lien foreclosures are rare, but still possible. In most scenarios, the creditor who filed the lien will have to wait until you sell the home or refinance, at which point the lienholders will be entitled to what they are owed.\nIt's possible, however, that a foreclosure won't fully cover all outstanding debts. Any creditors still owed after the foreclosure process may still go after outstanding balances, and liens can be transferred to other property, or property the debtor owns in the future. END
 TITLE: What Is a Lien? CONTENT: Does a Lien Show Up on Your Experian Credit Report?\n---------------------------------------------------\nSince 2018, tax, judgment and mechanic liens haven't been included on the credit reports maintained at the three consumer credit bureaus (Experian, TransUnion and Equifax). In the case of real estate liens, the lien itself isn't recorded in your reports, but the mortgage for which the lien is held is listed as one of your credit accounts.\nCurrently, the only public records listed in credit reports are bankruptcies. Records of Chapter 13 bankruptcy remain in credit reports for seven years from the filing date; records of Chapter 7 bankruptcy remain in reports for 10 years from the filing date. END
 TITLE: What Is a Lien? CONTENT: What Can Negatively Impact Your Credit\n--------------------------------------\nThough liens themselves are not included in your reports, if the lien was involuntarily, it's likely due to nonpayment. In that case, if the creditor that filed the lien reports payment information to the credit bureaus, a record of nonpayment could be listed in your reports and negatively impact your scores.\nHere are some of the main score factors that you should monitor when working to maintain a good score:\n*   **Maintain a good payment history.** Making on-time payments is the most important thing you can do to maintain or improve your credit score. Even one late or missed payment can cause your score to drop, so make sure to pay all your bills on time to avoid any negative impact.\n*   **Keep your credit card balances low.** Credit utilization is another important aspect of your credit. Credit scores can suffer when your credit balance approaches or exceeds 30% of your credit limit; maxing out your credit cards could put a big dent in your scores. Those with the best credit scores tend to keep their credit utilization in the low single digits.\n*   **Keep a good credit mix.** Lenders might want to know how you've handled various types of debt (credit cards as well as installment loans, for instance). Which means a diversified credit report that includes different types of credit can help your scores.\nIf you haven't checked your credit recently, get a free copy of your reports and scores from Experian to see what's in your credit file and how it's impacting your scores. END
 TITLE: Baby Boomers’ Student Loan Debt Continues to Grow CONTENT: Baby Boomer Student Loan Debt Tops Most Age Groups\n--------------------------------------------------\nBaby boomers—consumers between the ages of 55 and 73—had the second-highest student loan balances of any generation in Q1 2019, according to Experian data. Boomers carried an average of $34,703 in student loan debt, trailing their younger peers from Generation X, who carried an average of $39,584 in Q1 2019.\nThe high balances among both of these generations is striking, as the youngest member of Generation X is 39 years old—considerably older than the average age of a college student. And while there is no limit to when someone can attend school and take a loan, a portion of these high balances is attributable to the increase in parents taking specialized student loans to fund their children's education. Nearly 800,000 parents borrowed through the federal government's Parent PLUS student loan program between 2017 and 2018, according to the Urban Institute.\nAfter Gen X and baby boomers, millennials had the next highest average debt amount, followed by the silent generation and Generation Z.\nSource: Experian Q1 2019 data END
 TITLE: Baby Boomers’ Student Loan Debt Continues to Grow CONTENT: Washington, D.C., Has Highest Average Student Loan Balances\n-----------------------------------------------------------\nBaby boomers in Washington, D.C., carried an average student loan balance of $44,711 in Q1 2019, according to Experian data. That's 26% higher than the national average of $35,359 and nearly $4,000 more than the next highest balance of any state.\nWashington, D.C., was followed by Maryland, Georgia, New Jersey and Hawaii, which filled out the top five states for most student loan debt among baby boomers.\nSource: Experian Q1 2019 data END
 TITLE: Baby Boomers’ Student Loan Debt Continues to Grow CONTENT: Baby Boomers in Most States Have Below Average Student Loan Balances\n--------------------------------------------------------------------\nWhile average student loan balances among baby boomers increased over the past year, they came in lower than the national average in 38 states. Baby boomers in South Dakota carried the lowest student loan balances of all baby boomers, with an average student loan balance of $25,542 in Q1 2019. Iowa had the second-lowest average student loan balance, followed by Nebraska, Wisconsin and North Dakota.\nSource: Experian Q1 2019 data END
 TITLE: Baby Boomers’ Student Loan Debt Continues to Grow CONTENT: States With Lowest Student Loan Balances Have Top FICO® Scores\n--------------------------------------------------------------\nBaby boomers in the five states with the lowest average student loan balances also had some of the highest credit scores of boomers across all states in Q1 2019. Of the top 10 states where baby boomers have the highest average FICO® Scores, five of them are the states with the lowest student loan balances.\nYou can learn more about student loan debt by checking out Experian's articles on student loans. END
 TITLE: Millennials on Pace to Hold Most Mortgage Debt CONTENT: Millennials Carry Second-Highest Average Mortgage Debt\n------------------------------------------------------\nMillennials now have the second-highest average mortgage balance of any generation. Among millennials who have a mortgage, the average amount owed was $222,211 in Q1 2019—up 5% from last year's $210,923.\nCompare that with Generation X—people between ages 39 and 54, which held the highest average mortgage balances of $237,753 in Q1 2019—and the balances of the younger generation are fast approaching.\nSource: Experian Q1 2019 data END
 TITLE: Millennials on Pace to Hold Most Mortgage Debt CONTENT: Millennials' Mortgage Growth Tops Nearly All Generations\n--------------------------------------------------------\nWhen it came to growth in mortgage debt over the past year, millennials saw their mortgage balances grow more on average than almost any other generation. Millennial mortgage balances grew an average of 5%, which was the second-highest growth rate behind members of Generation Z, who saw their average balances increase by 15% since Q1 2018.\nMembers of Generation Z—those age 22 and younger who had the lowest average mortgage balance of any generation in Q1 2018 at $120,209—increased their mortgage debt to $138,193, outgrowing the silent generation's mortgage debt. The silent generation now carries the lowest average mortgage balances, at $131,658 in Q1 2019. END
 TITLE: Millennials on Pace to Hold Most Mortgage Debt CONTENT: Millennials in Washington, D.C., Carry Highest Mortgage Balances\n----------------------------------------------------------------\nMillennials in Washington, D.C., carried an average mortgage balance of $450,985 in Q1 2019, according to Experian data. That's more than double the national average of $202,284 and slightly higher than Washington, D.C.'s average of $416,848 across all generations.\nIn addition to having the highest mortgage balances, Washington, D.C., was among the top 10 states with highest millennial credit scores. Millennials in the state had an average FICO® Score of 698, which is a few points shy of the national average of 703, but significantly higher than the 667 average held by millennials nationally.\nSource: Experian Q1 2019 data END
 TITLE: Millennials on Pace to Hold Most Mortgage Debt CONTENT: Puerto Rico and West Virginia Have Lowest Millennial Mortgage Balances\n----------------------------------------------------------------------\nPuerto Rico was home to the lowest mortgage balance among millennials, totaling an average of $121,059 in Q1 2019. West Virginia wasn't far behind, with an average mortgage balance of $138,554 among millennials. These states also hold some of the lower average FICO® Scores in the U.S.—West Virginia had an average score of 640 and Puerto Rico's had an average of 657.\nSource: Experian Q1 2019 data\nIf you're a millennial and are interested in finding out more about your mortgage debt or your credit if you're looking into getting a mortgage, consider getting a free copy of your credit report and FICO® Score from Experian to see what is in your file.\nYou can learn more about mortgages by checking out Experian's mortgage articles. END
 TITLE: The Best Luxury Credit Cards of 2018 CONTENT: How to Pick the Right Luxury Card\n---------------------------------\nAll luxury credit cards offer a flurry of travel perks, but they don't always overlap. As a result, it's important to consider how you travel and what types of benefits you prefer.\nAs with any other credit card, you'll want to compare the features and terms of each luxury card and select the one that suits your needs best. Note, however, that applying for credit cards is different than applying for loans. If you're approved, your account gets opened automatically.\nSo, make sure you know which card you want and apply only for that card rather than applying for all of them to see what terms you'd get.\nAlso, note that luxury credit cards are typically designed for people with good and exceptional credit. Check your credit scores before applying to make sure you're score meets that standard, which can vary depending on which card you're looking at. END
 TITLE: The Best Luxury Credit Cards of 2018 CONTENT: ### Best Luxury Card With Rewards: Chase Sapphire Reserve®\n**Overview**: The Chase Sapphire Reserve® not only offers an impressive suite of benefits, but also a world-class rewards program. For starters, you'll earn 60,000 points after you spend $4,000 in purchases over the first 3 months, plus 3 points per dollar spent on travel and dining, and 1 point per dollar spent elsewhere.\nWhat makes that offer so special is that your points are worth 50% more if you use them to book travel through Chase. So, 60,000 points could be worth $750. Alternatively, you can transfer your points to any of the issuer's airline and hotel partners. The card charges a $550 annual fee.\n**Here are some other details to know**:\n*   A $300 annual travel credit as reimbursement for travel purchases.\n*   Access to more than 1,000 airport lounges through the Priority Pass network.\n*   Up to a $100 statement credit for a Global Entry or TSA Pre✓ application fee.\n*   Special rental privileges with National Car Rental, Avis, and Silvercar.\n*   Trip cancellation or interruption insurance.\n*   Lost luggage reimbursement.\n*   Trip delay reimbursement.\n*   Emergency evacuation and transportation coverage.\n**Benefits**: Among the other luxury credit cards we reviewed, the Chase Sapphire Reserve® offers the best all-around package. The card's annual fee is mostly offset by the card's travel credit, and you can easily make up for the rest of it with the card's other various perks.\n**Drawbacks**: Despite the card's benefits, a $550 annual fee is still too much for some. And the card doesn't offer as many elite perks as some of the others we reviewed. Depending on your preference, it might not be the best option for you. END
 TITLE: The Best Luxury Credit Cards of 2018 CONTENT: > Find credit cards for reward points in Experian CreditMatch™.\nWhich Card Is Right for You?\n----------------------------\nThere's no single best credit card for everyone, and you might decide that luxury credit cards aren't your cup of tea. As you're reviewing these cards, consider how you spend your money and your personal preferences.\nAlso, compare these cards with other top rewards cards to see if you might get as much value out of a card with a lower annual fee but fewer frills. As you take the time and do your research, you'll be more likely to find a card that you can use and benefit from for years to come. END
 TITLE: How Does Having Kids Affect Your Debt and Credit? CONTENT: Consumers With Four or More Children Carry 51% More Debt\n--------------------------------------------------------\nWhen broken out by number of children, consumers with four or more kids had the highest level of total average debt, with an average balance of $141,086. That's 51% more than the national average and $34,881 more than those with only one child.\nBalances declined as the number of children decreased: Consumers with only one child had an average total debt balance of $106,205.\nNational Average\n1 Child\n2 Children\n2 to 4 Children\n4 or More Children\n**Average Total Debt**\n$93,446\n$106,205\n$119,701\n$125,505\n$141,086 END
 TITLE: How Does Having Kids Affect Your Debt and Credit? CONTENT: Consumers With Children Had Lower Student Loan Balances\n-------------------------------------------------------\nCompared with the national averages, consumers with children had more debt across nearly every credit product—except student loans. Starting with consumers who had one child (whose credit balances were already above the national average), balances across different products—like credit cards and auto loans—continued to increase as families added more children. The one category in which balances didn't increase was student loans.\n\"Student loan debt is slightly lower than the national average for families with kids, but is still a high amount that takes a big chunk of monthly income to pay every month,\" says Susan Henson, director of community engagement for Experian.\nNational Average\n1 Child\n2 Children\n2 to 4 Children\n4 or More Children\n**Average Credit Card Debt**\n$6,445\n$7,298\n$8,025\n$8,299\n$9,099\n**Average Student Loan Debt**\n$34,906\n$33,436\n$33,520\n$33,470\n$33,498\n**Average Personal Loan Debt**\n$16,249\n$16,468\n$16,946\n$17,480\n$19,105\nAmericans With Four or More Kids Had Highest Average Credit Scores of All Parents\n---------------------------------------------------------------------------------\nWhile consumers with children had consistently below average credit scores, Americans with four or more kids actually topped the group, with the highest average FICO® Score☉ of 698—three points below the national average of 701.\nConsumers with only one child had the second-highest average FICO® Score, at 695. People with two to four children came next, with an average score of 693, and consumers with only two children were at the bottom, with an average of 692.\nNational Average\n1 Child\n2 Children\n2 to 4 Children\n4 or More Children\n**Average FICO® Score**\n701\n695\n692\n693\n698\nNo matter how many kids you have—if you have any at all—it's important to know where your credit stands to help you make financially sound decisions. To get more information about what's in your credit file, consider getting a free copy of your credit report from Experian. END
 TITLE: Millennials’ Student Loan Debt Continues to Rise CONTENT: Millennials Carry the Third-Highest Student Loan Debt\n-----------------------------------------------------\nOf all the generations, millennials carry the third-highest average student loan balance, at $34,504 per borrower in Q1 2019. And while they owe more than several other generations, millennial student loan balances are still slightly less than the national average, which was $35,359 in Q1 2019, according to Experian data.\nGeneration X—people between ages 39 and 54—have the most student loan debt of any generation, with an average of $39,584 per borrower. Baby boomers—consumers between ages 55 and 73—have the second-highest average student loan balance, $34,703 in Q1 2019, which is just slightly more than millennials. END
 TITLE: Millennials’ Student Loan Debt Continues to Rise CONTENT: Millennials Saw Second-Highest Increase in Student Loan Debt Since Last Year\n----------------------------------------------------------------------------\nAs with many other types of debt, millennials and members of Generation Z led with the most growth in student loan balances over the past year. Millennial student loan debt increased 8% from Q1 2018, and Gen Z debt saw a 9% increase in the same time period.\nWhen it comes to student loan debt, other generations also saw balance increases since Q1 2018. Gen Xers, who carry the most student loan debt of any generation, saw their student loan balances increase 6% in the past year. Baby boomers, who have the second-highest student loan debt, saw an increase of 7%, and the silent generation saw their student loan debt grow by 4%.\n\\*Source: Experian END
 TITLE: Millennials’ Student Loan Debt Continues to Rise CONTENT: Washington, D.C., Has Highest Millennial Student Loan Balances\n--------------------------------------------------------------\nAcross the U.S., millennials in Washington, D.C., had the highest student loan balances, with an average of $59,101 per borrower in Q1 2019. That's almost 1.5 times greater than the national average of $35,359. Millennials' student loan balances also exceeded the overall average in Washington, D.C., which in Q1 2019 was $55,729.\n\\*Source: Experian Q1 2019 data\nYou can learn more about student loan debt by checking out Experian's articles on student loans. END
 TITLE: What Generation’s Debt Changed the Most in the Last Year? CONTENT: Generation Z Adults Have 26% More Debt Since 2017\n-------------------------------------------------\nAdult members of Generation Z—Americans ages 18 to 22—increased their average total debt amount by 26% since last year, according to Experian data. These young adult consumers carried an average total debt balance of $10,891 in the fourth quarter of 2018, up $2,214 from $8,677 in the same period in 2017.\nMillennials—ages 23 to 38—also saw a spike in average debt levels, increasing their overall debt total by 11%. Millennials' average total debt balance was up $7,678 from $72,988 in the same period in 2017, totaling $80,666 in the fourth quarter of 2018.\nMembers of Generation X—ages 39 to 54—also saw an increase in debt, but not on the level that younger generations did. Since 2017, Generation X's average total debt balance increased only 1%, or just $1,311. END
 TITLE: What Generation’s Debt Changed the Most in the Last Year? CONTENT: Older Generations Reduced Total Debt Amounts by 3% Since 2017\n-------------------------------------------------------------\nWhen it comes to Americans in older generations, total average debt amounts decreased year over year, according to Experian data. Since 2017, both baby boomers (ages 55 to 73) and members of the silent generation (ages 74 and above) decreased their average debt balances by 3%.\nFor baby boomers—who carry more than double the total debt of the silent generation—this decrease represented a $2,768 drop in balances, moving average total boomer debt from $97,863 in 2017 to $95,095. Members of the silent generation—who carried only $38,817 in total average debt in 2018—saw a drop of $1,035 from $39,853 in 2017. END
 TITLE: What Generation’s Debt Changed the Most in the Last Year? CONTENT: Student Loan Balances Increased Across All Generations\n------------------------------------------------------\nRegardless of whether a given generation saw an overall decrease in total debt figures, average student loan debt still increased, according to Experian data. For both baby boomers and members of the silent generation—who saw a 3% decrease in total debt—student loan balances increased 6.5% and 4.1%.\nMembers of Generation Z had the largest increase in student loan debt, growing a little over 38% since 2017. Their average student loan debt grew from $10,203 to $14,119 in the span of 12 months. Millennials saw the second-highest spike, growing their average student loan debt by 7.9% to $34,770, a $2,531 increase from $32,239 in 2017. END
 TITLE: What Generation’s Debt Changed the Most in the Last Year? CONTENT: Debt Shifts Show Younger Generations Borrowing More\n---------------------------------------------------\nAccording to Experian's larger look at debt in the U.S., Americans' credit spending continued to grow in 2018, reaching a record high of $13.3 trillion in debt. The shifts in generational debt since 2017 show that younger consumers are carrying more debt, while older consumers may be slowly getting rid of their balances. Middle-aged consumers—Generation X—hovered right in the middle, only seeing a 1% increase since last year.\nIf you're interested in learning more about your debt and credit, consider getting a free copy of your credit report from Experian to see what's in your credit file. If you're struggling to manage your debt and are looking for ways to shave off some of your balances, consider creating a repayment plan or learning more about debt consolidation. END
 TITLE: Millennial Credit Scores Lag Behind Other Generations, Despite Highest Growth CONTENT: Millennials Saw Largest Growth in Credit Scores\n-----------------------------------------------\nEven though millennial credit scores have grown more than any other generations' in the past five years, they still lag considerably behind—with an average credit score that is less than the national average. Millennials' average FICO® Score☉ in Q2 2019 was 668—that's 35 points below the national average of 703, according to Experian data.\nCompared with the generation that came before them—Generation X—millennial credit scores trail by just 20 points. But next to baby boomers, who have an average credit score of 731, millennials need to add 63 points to their score average to close the gap.\nDespite having the second-lowest average credit score of any generation, millennials saw their scores increase the most over the past five years. Since Q2 2015, the average millennial credit score jumped 3% from 651 to 668, according to Experian data. Both Generation X and the baby boom generation saw their scores jump 2% during the same period, while the silent generation's scores only increased by less than half a percent.\nGeneration Z was not included in this analysis because nearly half of the generation was not old enough to obtain credit in 2015. END
 TITLE: Millennial Credit Scores Lag Behind Other Generations, Despite Highest Growth CONTENT: Millennials Saw Biggest Increase in Debt in the Past Five Years\n---------------------------------------------------------------\nAt the same time millennial scores have increased, so has their debt—and it's happening across all debt products. Debt and credit scores often increase in tandem—as evidenced by baby boomers, who maintain some of the highest debt levels and also some of the highest credit scores.\nSince Q2 2015, millennial debt across nearly every debt product has grown more than any other generation. Overall, the generation's total average debt grew 58% in the past five years. Over this same period, their credit card debt has increased 40%, personal loan debt is up 35%, auto loans have gone up 11% and student loan debt has increased 33%. END
 TITLE: Millennial Credit Scores Lag Behind Other Generations, Despite Highest Growth CONTENT: Minnesota Maintains Highest Millennial Credit Scores\n----------------------------------------------------\nMinnesota remained the state with the highest millennial credit scores, keeping its position since our earlier analysis of Experian data from Q4 2018. Millennials in the state had an average FICO® Score of 700—higher than the national millennial average by 32 points.\nIn total, millennials in 30 states had average credit scores that were higher than the national millennial average. This indicates that the scores among the other 21 states are low enough to pull the whole generation's average down on a national scale.\nMillennial consumers in Minnesota had the highest average scores in Q2 2019, followed by Washington, D.C.; Massachusetts; North Dakota and Washington state.\n\\*Source: Experian data is from Q2 of each year. Credit score data is specific to millennial consumers. END
 TITLE: Millennial Credit Scores Lag Behind Other Generations, Despite Highest Growth CONTENT: Michigan Millennials See Most Improvement in Credit Scores\n----------------------------------------------------------\nMillennials overall increased their scores by 3% since 2015, but members of the generation in some states outperformed the national trend. Michigan millennials saw the highest increase, raising their scores by 3.4%—22 points—in the five-year period.\nMichigan was one of seven states to see an increase higher than 3%. It was followed by Oregon, Wisconsin, Washington and New Mexico as the top five states with the largest improvement during the five-year period.\n\\*Source: Experian data is from Q2 of each year. Credit score data is specific to millennial consumers. END
 TITLE: Millennial Credit Scores Lag Behind Other Generations, Despite Highest Growth CONTENT: Mississippi Maintains Lowest Millennial Credit Scores\n-----------------------------------------------------\nIn line with the national trend across all generations, Mississippi was home to the millennials with the lowest scores in Q2 2019, according to Experian data. Millennials' average FICO® Score in the state was 625—78 points lower than the overall national average, 45 points lower than the national average among millennials and 42 points lower than the state's national average across all generations.\nMississippi millennials were followed by those in Alabama, South Carolina, Louisiana and Arkansas, which made up the five states with the lowest credit scores.\n\\*Source: Experian data is from Q2 of each year. Credit score data is specific to millennial consumers. END
 TITLE: What Happens if You Can’t Pay Your Car Insurance Deductible? CONTENT: How Does a Car Insurance Deductible Work?\n-----------------------------------------\nAuto insurance has two main costs: your premium and deductible. Your premium is what you pay each month to keep the coverage policy, and your deductible is the amount you'll have to pay out of pocket for auto repairs before your insurance coverage kicks in.\nDeductibles can range from a few hundred to a few thousand dollars. A policy with a higher deductible will be cheaper than a similar one with a lower deductible, and vice versa. Drivers looking to save money on a monthly premium may ask their insurer to raise their deductible, with the risk being that they'll pay more out of pocket if they're involved in an accident.\nShould you ever get in an accident, the insurance claim process will work like this:\nLet's say your deductible is $500 and an accident causes damage that will cost $2,000 to repair. You will have to pay the first $500 of repairs, and the insurance company will cover the remaining $1,500. If repairs cost less than $500, you will be responsible for paying those costs on your own.\nWhen your insurance provider pays out claims—it may send a check to cover the cost of repairs to you or to your mechanic—your deductible will be taken out of the total. END
 TITLE: What Happens if You Can’t Pay Your Car Insurance Deductible? CONTENT: If you can't afford your deductible, there is a chance you won't be able to begin repairs right away.\nIf your insurer requires your deductible be paid before they issue the remaining funds for a claim, you will need to find a way to pay it upfront. If you have until repairs are completed to come up with the money, you have some time to figure out where you'll get it. Consider the following options:\n*   **Wait to file your claim.** If you are between paychecks, or have money coming in soon, you could wait to file your insurance claim. This way you'll have money in hand once it comes time to cover the deductible. If the accident was severe, waiting could extend the time you're without a car. If your vehicle was towed or is already at the mechanic, make sure you know how long your car can be stored and what it'll cost you.\n*   **Negotiate with your mechanic.** If your insurer plans to issue you a check for the repairs, you may be able to negotiate with the mechanic and ask them to waive your deductible. In this case, they would just take the funds from the insurance company, effectively giving you a discount for the amount of your deductible.\n*   **Think about whether the repairs are critical.** There are many different types of accidents, and you may not need to fix your car at this moment. If the damage was just cosmetic, and the car is still safe to drive, consider not filing a claim at all. It may be worth the $500 savings (or whatever your deductible amount is) to not file the claim, if you can't afford the expense.\n*   **Tap into your emergency savings.** A severely damaged car could prevent you from, say, getting to work. If this is the case, and you have an emergency fund, now is the time to use it. Accidents are emergencies, and paying your deductible could be the difference between having transportation and not. If you aren't already saving for emergencies, consider starting a rainy day fund that helps you protect against situations like this. Putting even $50 per month in an account can add up over time and give you a cushion should anything like a major car repair come up. END
 TITLE: What Happens if You Can’t Pay Your Car Insurance Deductible? CONTENT: Consider Taking Out a Loan to Pay Your Deductible\n-------------------------------------------------\nIf the damage on your car needs to be repaired ASAP, you could consider taking a loan to cover your deductible. Whether through a personal loan, cash advance on your credit card or some other form of credit, borrowing could help you get your car back on the road more quickly.\nGoing through an online-only lender, for example, could allow you to complete the entire process of getting a personal loan entirely from your phone or computer. Funding for many of these loans can come as quickly as one or two days after approval, which could help you get the ball rolling on repairs.\nWhen looking over your borrowing options, be sure to consider the interest you'll pay on the loan. A high-interest loan can make borrowing to cover a deductible a much more expensive endeavor. Get preapproval through multiple lenders to see which one can offer you the best terms and the lowest interest rate before you borrow. Experian CreditMatch™ can help you do this. Even a low-interest loan will cost you interest, though, but it's likely to be worth it if you need your car for work or school. END
 TITLE: Will Paying Off a Loan Improve Credit? CONTENT: How Does Paying Off a Loan Affect Your Credit?\n----------------------------------------------\nPaying off a loan might not immediately improve your credit score; in fact, your score could drop or stay the same. A score drop could happen if the loan you paid off was the only loan on your credit report. That limits your credit mix, which accounts for 10% of your FICO® Score☉ . It's also possible your score could fall if your other credit accounts have higher balances than the paid-off loan.\nEven so, in general, getting rid of a loan is a win: You'll have more flexibility with your finances, and you'll no longer accrue interest charges on the loan's balance. So, if paying off a loan makes sense for you, avoiding a brief credit score drop shouldn't be a reason to keep the account open. Also, reducing debt will lower your debt-to-income ratio, which lenders will be glad to see if you seek out a new line of credit once the loan is paid off. END
 TITLE: Will Paying Off a Loan Improve Credit? CONTENT: What Happens to Your Credit If You Pay Off a Loan Early?\n--------------------------------------------------------\nPaying off installment debt like personal loans and car loans won't necessarily help your credit scores. If you get rid of these loans early, the impact on credit will be slightly different than if you make a large payment to reduce your credit card balance, for instance. That's because installment loans will appear as \"closed\" on your credit report when they're paid off, and open accounts with positive payment history have a stronger positive impact on your credit score than closed accounts.\nYou may consider making payments as agreed throughout the loan term (rather than contributing an early lump-sum payment) if your loan's interest rates are low or 0%, if you don't have emergency savings, or if there are only a few months left on the term and you can make use of the resulting positive effect on your credit. END
 TITLE: Will Paying Off a Loan Improve Credit? CONTENT: Should You Pay Off Debt Early or Continue Making Payments?\n----------------------------------------------------------\nSince your credit score may not improve if you pay off a loan early, it's natural to wonder whether you should prioritize debt payoff at all.\nFirst, make sure you have enough emergency savings to carry you through a potential period of unemployment or other unforeseen event. Ideally, you'll have three to six months' worth of basic expenses saved at all times—which means avoiding dipping into savings to pay off debt.\nIf you have a robust emergency fund, however, and you're saving for other goals like retirement and perhaps a down payment on a home, then you may decide to use extra funds to pay off a loan. There are several reasons why getting debt-free is a goal worth working toward, whether or not you'll experience a credit score boost afterward.\n*   **Lower debt-to-income ratio**: When you pay off debt, your debt-to-income ratio (DTI) decreases, since you now have smaller monthly debt payments compared with your income. That's one of the primary factors financial institutions use to make mortgage lending decisions, for instance, so if you're in the market for new credit in the future, lowering your DTI could be valuable.\n*   **Interest savings**: The moment you pay off a personal loan that carried an interest rate of 9%, for instance, you'll get access to the money you were previously putting toward your monthly bill. You can allocate the money you were previously paying toward other debt or toward savings.\n*   **Peace of mind**: Debt can feel like a cloud hanging over you, especially when it's keeping you from pursuing goals you're passionate about. Eliminating a monthly debt payment from your budget gives you innumerable new possibilities for making use of that money. Celebrate when you pay off a loan; the flexibility and freedom you'll now feel can be priceless.\nOne more thing to consider: A personal loan might not be the best debt to prioritize if your goal is becoming debt-free and saving money. Generally, loans carry a lower interest rate compared with other types of debt, such as credit cards. Before you decide to pay off a loan, take a look at your other debts. It might save you more money overall if you focus on the debt with the highest interest rate. END
 TITLE: Will Paying Off a Loan Improve Credit? CONTENT: Other Ways to Improve Your Credit\n---------------------------------\nYou have plenty of other options if improving credit is your biggest goal. Continue to make timely payments on all of your accounts and keep credit card balances to a minimum, ideally charging no more than 30% of your credit limit on each credit card at any point. This will ensure your credit utilization rate doesn't negatively impact your credit score, but to see credit improvement, the lower your utilization is, the better.\nIt's also important to maintain a healthy average account age, which means you should avoid closing your oldest credit card accounts unless they carry a fee that makes it a financial burden to keep it open. That doesn't mean you have to use them very frequently. One small purchase per month that you pay off immediately will signal to lenders and the credit bureaus that you have a handle on responsible credit usage over time. END
 TITLE: Will Paying Off a Loan Improve Credit? CONTENT: Paying Off a Loan vs. Waiting It Out\n------------------------------------\nIt's a personal choice whether to keep a loan account open for its full term or to pay it off early. But there are a few circumstances when the decision is relatively clear: If you're trying to use extra cash to build up an emergency fund, or your loan's rate is very low, it may be best to pay the loan over time as agreed and benefit from the positive credit impact.\nOn the other hand, perhaps you need a low debt-to-income ratio to qualify for a new loan, or you have the means to pay off the loan and you don't plan to take out any new credit in the near future. In these cases, freeing yourself from the loan, and accepting a brief potential credit hit, could be a good bet. END
 TITLE: How to Budget Using Multiple Accounts CONTENT: The Case for Creating a Budget\n------------------------------\nSome find the idea of budgeting restrictive and time-consuming, and it can certainly be a complex task depending on the method you choose. At its most basic, however, a budget is merely a way of keeping track of your spending so you can make sure there's enough left over to do the things you want. It might help to think about budgeting as a means to an end: If your ultimate goal is to own a home, travel more or to buy all the guitar gear you want, a budget can help you get there.\nThe first step in budgeting is to identify how much money you're bringing in each month, being sure to factor in your partner's earnings if you're a dual-income household. Then, take a look at your expenses, either by tracking them in real time going forward, or by looking back on one to three months' worth of bank account and credit card statements. This will give you an overall picture of how much you spend by category (groceries, meals out, entertainment, utilities, housing, car maintenance and the like). As you create your budget, knowing your previous spending will help you decide how much to allocate toward each category and whether you need to cut back in one area to cover another.\nThen comes the fun part: Think about your financial goals and start crafting a savings strategy. Maybe you want to retire early, buy a beach house or live as a digital nomad for a period of time. When budgeting, make sure to work in a monthly savings goal for each major milestone you want to hit. That can also help you figure out how much to siphon away from your entertainment or personal care spending, for instance. END
 TITLE: How to Budget Using Multiple Accounts CONTENT: How Does Budgeting With Multiple Accounts Work?\n-----------------------------------------------\nMerely allocating money from your paycheck to multiple checking and savings accounts can be an effective budgeting strategy—no fancy tech or ongoing expense tracking necessary. Here are three ways to do it:\n*   **Fixed vs. variable expense accounts**: Using this strategy, you'll create two checking accounts and one emergency savings account (you can always make more savings accounts for specific goals if you wish to). One checking account will be for fixed expenses that don't change each month: rent or mortgage payments, insurance, utilities, gym membership fees, minimum debt payments and so on. The second checking account will be for expenses that can change from month to month, like groceries, meals outside the house, concert tickets, clothing, gas and others. Your third account will be your emergency savings account, which should be linked to one of the two checking accounts so you can easily transfer money there if necessary. You'll split your paycheck into these three accounts each month. The goal is to get a better overview of your spending and to easily limit variable-expense spending if needed by transferring less money into that account.\n*   **Multiple savings accounts for different goals**: You can also choose to use your checking account for bills only, and to immediately transfer money out of your checking account each pay period into separate savings accounts. That can help get your income out of easy reach and give it a home before you can spend it. Some banks allow you to create separate sub-accounts for various goals, and in general, online savings accounts come with low enough fees that you can safely create many accounts at one institution. Consider creating separate accounts for emergency savings, vacations, a down payment, holiday gifts and car or home repair and making transfers to each one every month or every few months.\n*   **Separate and joint accounts with a spouse**: You may also consider multiple account budgeting when you're married or in a partnership and you share finances. In this case, each partner may have their own checking and savings accounts, plus a joint checking account for shared bills and a joint savings account for shared savings goals. That's a lot of accounts to keep track of, though, which could become overwhelming if you're not careful. But by setting up automatic transfers from your personal checking account to each shared account—and your own savings account for meeting personal goals—you can stay on track for the future while allowing for financial independence.\nNo matter which multiple-account budgeting method you choose, make sure you first understand whether the accounts you set up carry account maintenance fees, and if so, how you can avoid them. Additionally, be aware that your bank may limit the number of transfers or withdrawals you can make from a savings account. END
 TITLE: How to Budget Using Multiple Accounts CONTENT: Other Budgeting Methods to Consider\n-----------------------------------\nIf maintaining several bank accounts seems overwhelming, here are other options to try:\n*   **Envelope budgeting**: This is an option for budgeters who like a hands-on approach. You'll decide on a range of budgeting categories and assign each an envelope. You'll then divide up your earnings each pay period, in cash, across all the envelopes according to the amounts you've determined you'll spend in each category. If you spend all the cash available in one envelope, you're discouraged from pulling from another envelope—you'll simply have to wait until the next pay period to continue spending in that category.\n*   **The 50\/30\/20 budget**: Using this method, your income is split into necessities (which you'll spend no more than 50% of your income on), wants (30%) and savings and debt payoff (20%). This can help you decide how much to spend in each category no matter which supplemental budgeting strategy you choose, such as multiple accounts or envelopes.\n*   **Zero-based budgeting**: The zero-based budgeting method sorts every dollar you earn into a category. But unlike envelope budgeting, it allows you the freedom to move money between categories if necessary. You can use this in tandem with multiple-account budgeting by splitting every dollar you earn into separate accounts, letting you easily account for all of your money each month. END
 TITLE: What Is Installment Credit? CONTENT: How an Installment Loan Works\n-----------------------------\nWhen you take out an installment loan, you borrow a fixed sum of money and make monthly payments of a specific amount until the loan is paid off.\nAn installment loan can have a repayment period of months or years. Its interest rate could be fixed or variable, meaning it can go up or down in the future. Installment loans also may come with additional fees, such as origination or late fees. It's crucial to check the loan agreement carefully before taking out an installment loan to understand exactly how much you'll pay.\nTypical installment loans include:\n*   **Mortgage**: A mortgage is a loan used to buy a home. The home itself acts as collateral, so if you're unable to make payments, your lender could take possession of it. Mortgages generally come in 10-, 15- or 30-year terms, and will have either a fixed or adjustable interest rate. You'll also pay closing costs, fees and, potentially, private mortgage insurance if your down payment covers less than 20% of the purchase price of the home.\n*   **Car loan**: Like mortgages, car loans typically require a down payment. The more you put down, the smaller your installment loan will be. A car loan uses your vehicle as collateral, similar to a mortgage, meaning your car could be repossessed if you don't pay the loan as agreed. Car loan terms are typically 36 to 72 months, but longer terms are becoming increasingly common. As of the first quarter of 2019, 38% of new passenger vehicle loans had terms of 61 to 72 months, according to Experian data.\n*   **Personal loan**: A personal loan can be used for many purposes, including consolidating debt or financing a home renovation. Personal loans are unsecured, meaning they're not backed by collateral like mortgages or car loans are. As a result, their interest rates can be high—up to 36%—depending on your credit scores. You can generally take out a personal loan between $1,000 and $50,000, with repayment terms of two to five years. END
 TITLE: What Is Installment Credit? CONTENT: How Are Installment Credit and Revolving Credit Different?\n----------------------------------------------------------\nUnlike an installment credit account, a revolving credit account lets you carry a balance from month to month. Credit cards and home equity lines of credit are examples of revolving accounts.\nOn a revolving credit account, you decide how much to charge every month and how much to repay. When you carry a balance from month to month, the interest you'll incur adds to your total balance.\nWhile you aren't required to pay off the full balance each month, the lender will provide a credit limit, or maximum amount you're allowed to charge. It will also assign you a minimum monthly payment, which can change depending on your balance. If you miss payments or you're late, your credit score will suffer. END
 TITLE: What Is Installment Credit? CONTENT: Do Installment Loans Build Credit?\n----------------------------------\nMaking installment loan payments on time is one of the primary ways you can build and improve your credit. Payment history is the largest contributor to your credit score; making on-time payments demonstrates to lenders that you're a responsible user of credit.\nWhile paying an installment loan as agreed and in full will have a positive effect on credit scores, paying off the loan early likely won't have a significantly greater impact than simply paying it off on time.\nUnlike a revolving account, such as a credit card, once an installment loan is paid off, it's considered closed. A closed account in good standing will stay on your credit report for 10 years and will continue to benefit your score. END
 TITLE: What Is Installment Credit? CONTENT: The Bottom Line\n---------------\nInstallment loans can help you achieve some of the most common and sought-after financial goals, like owning a house or car, by allowing you to pay back a purchase over a long period of time. Making installment loan payments on time and paying off the loan as agreed will help your credit.\nBut like any type of credit, only seek out loans you really need, and check your credit score before applying to see what interest rates you'll likely qualify for. If needed, take some time to improve your credit score before you apply to ensure you get the best rate and terms possible. END
 TITLE: How to Budget for One-Time Expenses CONTENT: When you make a budget, the first steps are to determine your monthly take-home income and then list all your current expenses. This can help you understand how much of your available income you're spending daily, monthly and annually.\nWhen you list your expenses, don't forget to include those that occur infrequently but that can still take a bite out of your budget: Common examples include homeowners, renters and life insurance premiums; membership fees for professional organizations; car registration; licensing or certification fees for your job; annual home maintenance; and holiday and birthday gifts.\nThese aren't monthly expenses, but they are ones you can plan for by setting a little bit aside every month. Take a look at your spending on these items from last year, either by viewing your bills or your credit card or bank statements, and identify how much you spent annually. Then, take the amount of each cost, total them all up and divide by 12. This is the amount you'll want to save per month in order to stay prepared.\nSaving a little each month for these major expenses can help prevent you from putting them on a credit card and accruing interest on the balance if you don't pay it off right away. Consider setting up a specific savings account just for annual expenses, then automatically transferring the monthly amount for each expense to that account. When the expense comes up, you'll pull from that account. Or, simply transfer the monthly portion of each expense to your general savings account and make payments from there when needed. END
 TITLE: How to Budget for One-Time Expenses CONTENT: How to Budget for (Non-Emergency) One-Time Expenses\n---------------------------------------------------\nOther expenses happen even less often than annually, and can feel harder to budget for. Perhaps you'd like to take a trip for your five-year wedding anniversary or pay for an elective medical device or procedure, like laser eye surgery. Or you know friends are planning big weddings in the next few years, and you'd like to be able to attend.\nIn some cases—such as with medical procedures—you can do some research to identify how much they'll cost and budget monthly for the expense using the advice above. If you'll be paying $1,000 one year from now, save about $83 a month, for example. But since one-time expenses are by nature hard to plan for, it's a wise choice to set up a dedicated account for unexpected, non-emergency expenses and send over a certain amount that you can afford each month. That also gives you a built-in budget for these nonessential costs, which can help you determine how much you can truly afford to spend on them. If budgeting monthly breaks the bank, you might even rethink whether the purchase is affordable in the first place.\nWhen it comes to where to keep your savings, you can set up individual savings accounts, or buckets within a single account, for different types of one-time expenses: a vacation fund, friends' wedding fund, health care costs fund and so one. This is easy to do at many online banks that offer high-yield savings accounts.\nHere's what setting up these accounts might look like. Say that in the next year, you foresee going on three major trips, and that in the past, those cost about $1,000 each. You'll aim to save $3,000 in total, or $250 a month, in a vacation fund. So you'll open up a vacation-specific savings account at a bank and transfer $250 there every month, ideally knowing that your money will accrue interest while it waits for you to withdraw it for vacation. END
 TITLE: How to Budget for One-Time Expenses CONTENT: Can One-Time Expenses Affect Your Credit?\n-----------------------------------------\nSimply paying a large amount once with money from your checking or savings account will not affect your credit. However, you could see an impact on your credit score if you put that large expense on a credit card. That's because the purchase would increase your credit utilization, which measures the amount of available credit you're using compared with your credit limit. Credit utilization is one of the most important factors in your credit scores, and the more of your credit limit you use, the higher your utilization will be.\nThis isn't a problem if you pay off the charge, and ideally your whole credit card balance, by the end of each month. But if you don't, you'll also pay interest on the balance that stays on your card the following month. That will make the expense even pricier, and will keep your credit utilization higher. Missing a payment will have the biggest negative impact on your credit score, so make sure that you're able to make a payment on your credit card at all.\nIt could make sense to use a credit card for a one-time expense if you have access to a credit card that provides generous rewards or a 0% interest promotional period on your credit card. When a card charges no interest during an introductory period, you'll be able to pay down the purchase over time without accruing any interest charges—as long as it's paid off before the promotional period ends, that is. END
 TITLE: How to Budget for One-Time Expenses CONTENT: How to Make a Budget That Covers All Types of Spending\n------------------------------------------------------\nTo make a strong budget you can stick to, you'll typically need a few different bank accounts. But by setting up automatic transfers and getting regular notifications about your balances, you'll be able to stay on top of your spending and saving without too much extra effort. Here's how to do it:\n*   **Use your checking account only as a place to deposit your paycheck and pay for regular expenses.** This includes groceries, rent and utilities. Since checking accounts often don't come with high interest rates, you'll lose out on potential earnings if you keep all your money there. Set up automatic transfers from your checking to your separate savings accounts to make sure you earn as much interest on savings as possible. You will need a cushion in your checking account to prevent an overdraft. For instance, you may decide to keep an extra $500 to $1,000 there per month beyond your basic expenses and the amount you send to savings, but transfer the rest elsewhere.\n*   **Use a high-yield savings account for your emergency fund.** This allows you to earn interest on money that you most likely won't spend for a while. You could also keep an emergency fund in a money market account or certificate of deposit (CD), but these accounts come with more restrictions on how and when you can withdraw your money. If you don't yet have an emergency fund, you can start transferring money to that fund each month, as well, until it's built up to the recommended amount of three to six months of your necessary expenses.\n*   **Set up separate high-yield savings accounts.** This can be where you keep funds for annual expenses, and perhaps other accounts—or sub-accounts at the same bank—for one-time expenses. You'll transfer money there from your checking account monthly, based on your estimates for how these expenses will cost. END
 TITLE: How to Budget for One-Time Expenses CONTENT: Make a Plan to Protect Your Credit\n----------------------------------\nHaving a plan in place to handle unplanned expenses can help prevent you from taking out a loan or going overboard on credit card spending. When it does become necessary to use credit to finance a purchase, however, it's important to make sure your credit report and score are in good shape. Monitor your credit through Experian to stay on top of things like score changes, potential fraud and updates to your credit report. This can make it easier to borrow when the time comes and help make sure you get the best rates. END
 TITLE: When Should I Apply for Another Credit Card? CONTENT: When It Can Be a Good Idea to Get Another Credit Card\n-----------------------------------------------------\nConsider seeking a new credit card when you're in one of the following situations:\n*   **Your credit score has improved**: If you already have a credit card and your credit score has increased since you first got it, you might now be eligible for a new credit card with premium benefits. That can be the case if you have a student credit card from your college days, or a secured credit card you used to build credit.  \n    You may want to apply for a card that offers a higher cash back rewards rate or the opportunity to rack up points for travel, if that's more in line with your current lifestyle. These cards also typically require good or excellent credit, which shouldn't be a problem if you've been practicing good credit habits.\n*   **You'd be able to take advantage of promotions**: Some cards offer a 0% promotional annual percentage rate (APR) for a year or more. It can be a smart financial move to use this period to make interest-free purchases. Other cards offer cash bonuses if you spend over a certain threshold in the first few months of having the card. If you're planning a wedding or home renovation, for instance, you're likely hit a credit card's minimum spending requirement. Getting a card with a high sign-up bonus could mean, in effect, a discount on your purchases.\n*   **You have a history of managing credit responsibly**: Honestly assess whether you'll be able to juggle your new credit card along with what you already have. Prioritize making payments on time every month and keeping your balance low. If you're gunning for a sign-up bonus, make a plan to pay off the balance as soon as possible. Access to more credit shouldn't mean more spending beyond what you can afford to pay off. END
 TITLE: When Should I Apply for Another Credit Card? CONTENT: When You Might Want to Wait to Apply for a New Credit Card\n----------------------------------------------------------\nThere are circumstances in which you should wait to apply for a new credit card:\n*   **You've recently applied for a credit card**: When you apply for credit, a lender generally will request a copy of your credit report—this is called a hard inquiry. Too many hard inquiries in a brief time is a red flag for lenders, who may interpret them as a sign that you're not a responsible manager of credit.  \n    Some card issuers even have their own rules about how long you must wait before applying for a new card with the same company. Chase, for instance, has an informal policy called the 5\/24 rule that restricts customers from opening more than five Chase credit card accounts in a 24-month period.\n*   **You're planning to apply for a loan or mortgage**: Avoid applying for new credit if you'll also be seeking other forms of credit, like a home loan, in the near future.  \n    While one hard inquiry's effect on your credit is minimal, a slight point drop could prevent you from making it into a lender's most competitive interest rate tier if you're already on the edge. A new line of credit will also lower the average age of your accounts, and lenders like to see long credit histories. Experts recommend you avoid seeking new lines of credit for one year before applying for a mortgage.\n*   **You're struggling to afford your current credit card bills**: It's also wise to wait to apply for a new card if you can't pay off the cards you have, or if you feel you'll be tempted to overspend with a bigger credit line. Wait until you're confident your income and spending habits can support the greater access to credit a new card would bring. END
 TITLE: When Should I Apply for Another Credit Card? CONTENT: What Happens When You Apply for a Credit Card\n---------------------------------------------\nNew credit inquiries account for 10% of your credit score and stay on your credit report for two years.\nWhile hard inquiries have a negative impact on your score, the effect you'll see depends on the number of accounts you have and the length of your credit history. If you have a limited credit file, you'll likely see a bigger impact. One hard inquiry results in a drop of less than five points for the typical consumer, according to FICO.\nIf your application is denied, lenders must tell you why and provide information on how to access your free credit report. It's possible the lender determined you have too much debt compared to your current credit limit, that you don't have a long enough credit history, or that you have too many missed or late payments.\nContact the lender if any of your circumstances have changed since you applied for the card—perhaps you paid off another balance or increased your income, for instance. Request that the lender reconsider your application. If the answer is still no, refer to your credit report and aim to address the negative information that may have contributed to your rejection. END
 TITLE: When Should I Apply for Another Credit Card? CONTENT: Know When the Time Is Right\n---------------------------\nA new credit card could net you more premium benefits, like higher cash-back rates, primary rental car insurance or no foreign transaction fees. It could also mean a lower APR which will save you money if you carry a balance month to month. But make sure you're ready for the responsibility of another card.\nIf you're not sure you'll qualify, or you applied and got rejected at first, view your free credit score. Then you can take action on any factors keeping you from accessing a potentially worthwhile new card. END
 TITLE: How to Choose the Right Balance Transfer Credit Card CONTENT: What Is a Balance Transfer?\n---------------------------\nWhen you make a balance transfer, you move existing debts to a new credit card that charges 0% APR for a period of time. Balance transfer credit cards commonly offer introductory 0% APR periods of 12, 15 or 18 months. The goal is to pay off debt, without accruing interest charges, before that time frame ends. That generally means avoiding making additional purchases on the card in the meantime.\nSome balance transfer cards offer benefits like cash back on purchases, access to free credit score monitoring and cell phone insurance covering theft and damage if you pay your bill with your card. You may also find cards that offer sign-up bonuses if you spend a certain amount within a few months of account opening. But since a balance transfer card is best used to pay down debt, not build up more of it, benefits like a sign-up bonus are not always worth the potential growth in your balance. END
 TITLE: How to Choose the Right Balance Transfer Credit Card CONTENT: How to Compare Balance Transfer Cards\n-------------------------------------\nTo qualify for a balance transfer card, you must generally have a good or excellent credit score, defined as a score of 670 or higher in the FICO credit scoring model. If you're eligible for a card, compare your options based on the factors that are important to you. These should include:\n*   **Issuer**: Credit card companies are eager for your business, and a balance transfer card brings your balances to their doorstep. That means they generally do not allow transfers from other credit cards of theirs you may already own. When you choose a Chase balance transfer card, for example, you will not be able to move a balance from an existing Chase card to the new one. But you can move an American Express or Discover balance to a Chase card, for instance. That also applies to the credit card company's affiliates, such as airline credit cards the company issues.\n*   **Introductory period**: Calculate how long you'll need to pay off your debt and choose a balance transfer offer based on that time frame. If you have a large amount of debt to get rid of, for instance, go with the longest introductory period you can find.\n*   **Balance transfer fees**: In most cases, the card issuer will charge a fee when you transfer a balance—commonly 3% or 5% of each transfer. You may be able to find a card that charges no balance transfer fees, but take into account whether you're likely to still have debt when the introductory period ends. If so, you're likely better off choosing a card with the lowest ongoing APR available, even if you have to pay a balance transfer fee. Calculate how much you'd pay in interest in each scenario before making a final decision.\n*   **Additional fees**: Aside from balance transfer fees, credit cards may also charge annual fees, foreign transaction fees or late fees. An annual fee could make it pricey to keep the card for the long haul, which should be your goal: Length of credit history accounts for 15% of your FICO® Score☉ , so the longer you keep the account open, the better generally. But if you choose a balance transfer card that also offers cash back, and you'll get enough cash back on purchases in the future to make up for the annual fee, it could be worth it.\nIf you travel frequently, not having to pay foreign transaction fees might be an even bigger consideration. And while you should plan to pay all bills on time to protect your credit score, take a look at the late fees assessed so you're not surprised if you miss a payment. You may even be able to find balance transfer cards that don't charge late fees at all—though if that could make you lax about payments, that might not be a good thing. END
 TITLE: How to Choose the Right Balance Transfer Credit Card CONTENT: Is a Balance Transfer a Good Option for You?\n--------------------------------------------\nBefore making a balance transfer, ensure that you'll qualify for a 0% APR period that's long enough to allow for substantial debt paydown. Check the credit limit that your new credit card issuer has offered, and choose balances to move that fall within it. Your balance transfer fee will be included in your credit limit, reducing how much you can transfer. If you're unable to transfer all your debt, prioritize the highest-interest balances so you'll save the most money.\nTake a close look at how your card treats new purchases too. If your card does not give you a grace period—since you're technically carrying a balance while you pay off your debt during the promotional time frame—then you may pay interest on new charges as soon as you make them. Understand whether your card charges higher than 0% APR on purchases, and whether it will start accruing immediately, to avoid surprise charges. In general, a balance transfer credit card is a good option if you plan to use it only to pay down debt, not to buy new items—at least during the promotional period and while you're paying off the transferred debt. END
 TITLE: How to Choose the Right Balance Transfer Credit Card CONTENT: How to Get the Most Out of Your Balance Transfer Card\n-----------------------------------------------------\nTo use a balance transfer credit card for its ideal purpose—getting rid of debt—make sure you pay enough each month to eliminate your balance by the end of the introductory period. That likely means making more than the minimum payment. Also, set up monthly automatic payments for a specific amount through your credit card issuer so you never miss one. That will keep your credit score strong and give you continued access to the 0% APR offer, which some issuers eliminate if you pay late.\nIt's also important to keep your previous credit cards open, even if they no longer have balances. Closing credit cards shortens your average age of accounts, which could have a negative effect on your credit score. Also, in most cases, keeping accounts open with zero balances will lower your overall credit utilization rate, or the amount of available credit in use. Credit utilization accounts for 30% of your FICO® Score—the second-largest share, after payment history—and keeping your utilization rate low can have a positive impact on your credit.\nIn the end, if you use a balance transfer credit card to lower your total debt, your credit score will likely improve. Make sure to continue that positive financial behavior by keeping balances low and paying all bills on time long after the debt on your balance transfer card is gone. END
 TITLE: How to Choose the Right Balance Transfer Credit Card CONTENT: The Bottom Line\n---------------\nA balance transfer credit card can be an extremely useful tool for consolidating and knocking out debt. Choose a card that meets your individual needs—not only while you're getting rid of the balance, but afterward, once it's like any credit card in your wallet that could get you rewards and benefits too. END
 TITLE: How to Budget Using a Credit Card CONTENT: Strategies for Budgeting Using a Credit Card\n--------------------------------------------\nNo matter which budgeting method you use—and we'll offer a few suggestions below—your credit cards can be a powerful tool for financing purchases over a period of time. Just be sure to keep interest costs in mind and make all your payments on time.\nAlso, be wary that relying on credit cards can encourage overspending. If you have a history of making charges you can't pay off within a few months, it may be best to limit the number of purchases you make with credit.\nWhen using credit for everyday spending, it's ideal to pay off your balance each month; if you can't, aim to carry a balance of no more than 30% of your credit limit. That will limit the negative impact of credit utilization on your credit score. END
 TITLE: How to Budget Using a Credit Card CONTENT: Pros and Cons of Budgeting With a Credit Card\n---------------------------------------------\nTo get the most out of a credit card, it's important to be vigilant about your credit card spending. With that in mind, there are several advantages to using a credit card as part of your budgeting plan:\n*   **Track purchases on your statement or in your issuer's app.** Credit cards can make expense tracking automatic. Many issuers offer the option to see a breakdown of your monthly spending by category, and checking your daily and weekly spending is much easier with a credit card than noting each purchase by hand or in a spreadsheet. You can put all of your everyday spending on one card so it's easy to see any patterns, or you can assign different credit cards different jobs based on the rewards they offer.\n*   **Set spending maximums.** Since you can check your balance often on a credit card issuer's app or website, it's easy to see when you're approaching a self-imposed spending limit. The trick is not to let your spending get too close to your limit regularly, though, since that could negatively affect your credit scores. For the sake of your scores, consider calculating 30% of your credit limit on the card and making that your max spending limit. Your credit balances affect your credit utilization rate, which is an important factor in your credit scores. Keeping your rate below 30% will help prevent credit score harm, but the lower your rate, the better.\n*   **Make use of credit card rewards.** Another good way to incorporate credit cards into your budget is to use credit only for certain purchases based on reward options. The Capital One SavorOne Cash Rewards Credit Card, for example, offers 3% cash back on dining and entertainment, 3% at grocery stores (excluding superstores like Walmart and Target), 8% cash back on tickets at Vivid Seats through January 2023, 3% on streaming services and 1% everywhere else, so you could use it to pay for meals out and concert tickets if those are two of your biggest budget categories. Then you'd be able to save on those purchases, too, by applying cash back to your statement balance. If you travel often, you could also put either a subset or all of your everyday spending on the Chase Sapphire Preferred® Card, which offers 3 points per dollar spent on dining, 2 points per dollar spent on travel, and 1 point on everything else, plus the option to get 25% more value when redeeming points on the Chase Ultimate Rewards portal. The card comes with a $95 annual fee, so make sure you get enough rewards to justify it.\n*   **Credit cards can help you build credit.** Making on-time payments on a credit card can show lenders and credit scoring models that you know how to responsibly manage debt. A long history of on-time credit card payments can help increase your credit scores and make it easier to qualify for new credit, including car loans and mortgages. If you don't plan on using your credit card to make day-to-day purchases, consider at least using it regularly for small purchases you can pay off right away.\nUsing credit cards to budget also has drawbacks:\n*   **You could have high credit utilization.** As mentioned above, it's important to keep an eye on how much of your credit limit you're using—on each card and across all cards—at any particular time. When you put a lot of charges on your card, even if you plan to pay them all off at the end of the month, you'll be able to keep your credit utilization low by making more than one payment to your balance each month. That can also help prevent your balance from ballooning so large that it becomes overwhelming.\n*   **Carrying a balance can make expense tracking tricky.** Let's say you make a purchase in March and don't pay it off until April. You can decide to include it in your budget for either March or April, but it may be easiest to leave it listed under your March expenses so that your spending behavior each month is as clear as possible. Furthermore, carrying a balance can throw your budget for future months out of whack if you don't properly plan for it. END
 TITLE: How to Budget Using a Credit Card CONTENT: How to Use Your Credit Card With Specific Budgeting Methods\n-----------------------------------------------------------\nYour credit card can have a place in any budgeting strategy you choose. Here's how it can fit into three popular methods:\n*   **50\/30\/20 budget**: This strategy suggests spending 50% or less of your take-home income on essentials, no more than 30% on nonessentials, and 20% or more on savings and debt payoff. You can use your credit card to pay for all nonessentials, for instance, and set 30% of your take-home income as your monthly credit card spending limit. You can also opt to get any cash back you earn as a deposit directly in your checking account, if your issuer allows for that, and put that money toward debt payoff.\n*   **Zero-based budget**: A more time-intensive strategy, zero-based budgeting requires you to assign each dollar you earn to a category, including savings, so that nothing is left unaccounted for. With more detailed categories in place, you can decide to use credit cards just for certain types of purchases, perhaps tied to rewards categories you're likely to collect a lot of points or cash back in.\n*   **Envelope budget**: Traditionally, the envelope system requires users to give themselves spending limits in various categories and then place that amount in cash in dedicated physical envelopes. You can now use this system digitally via various apps. You can give yourself a credit card purchase budget, and assign yourself a limit for what you'll pay with credit that month—either by writing that amount on a physical envelope or listing it as a line item in an app. Or you can use the physical envelope system only for certain budget categories and credit cards for other categories.\nWhile budgeting can be a bit more challenging when you regularly use a credit card for purchases, finding a strategy and sticking with it can help you keep your expenses on track—and help you get extra value on a regular basis with your credit card's travel rewards, cash back and other benefits. END
 TITLE: How a Balance Transfer Affects Your Credit Score CONTENT: Would a Balance Transfer Hurt My Credit?\n----------------------------------------\nWhen you apply for a balance transfer credit card, a hard inquiry will appear on your credit report. A hard inquiry is when a potential lender, such as a credit card issuer, checks your credit to assess whether you're likely to make payments as agreed. A soft inquiry caused by checking your own credit or by lenders looking to preapprove you for an offer does not affect your score.\nIf the lender decides you present too great a risk, your application will be denied. Multiple hard inquiries could demonstrate to a lender that you're seeking credit from too many sources and that you may not be a responsible borrower. Hard inquiries stay on your credit report for about two years, but they don't impact your credit score as much as your payment history or total outstanding debt does.\nAs with any new line of credit, opening a balance transfer credit card could negatively affect your credit by lowering the average age of your accounts. Lenders value long credit histories because experienced borrowers are more likely to use their credit appropriately. While opening a new account could temporarily cause a dip in your score, the benefits of strategically using a balance transfer card to pay off debt will generally outweigh it. To be safe, avoid closing older accounts around the time you open a new one so you're not doubly affected. END
 TITLE: How a Balance Transfer Affects Your Credit Score CONTENT: Would a Balance Transfer Improve My Credit?\n-------------------------------------------\nMoving multiple debts to a single balance transfer credit card could decrease your overall credit utilization rate, or percentage of available credit you're using. The lower your credit utilization, the better, because a low rate shows lenders you're not racking up debt that you can't repay. Experts recommend keeping your credit utilization below 30% at all times, which means using no more than 30% of your credit limit at any point.\nIf you have multiple credit accounts but move their balances to a single account through a balance transfer, your previous accounts' utilization rates will appear as 0% on your credit report. That could lower your average utilization, which accounts for 30% of your FICO® Score☉ , the score most commonly used by lenders.\nSome credit scoring models may calculate credit utilization based on individual credit cards. If that's the case, your new balance transfer card may have a high utilization rate, since it now incorporates all the balances you transferred from previous accounts. That could have a negative effect on your utilization rate.\nIn general, however, the goal of getting a balance transfer card is to make it possible to pay off debt. If you take advantage of your 0% APR period and use your interest savings to pay down the balance, your credit utilization will decrease over time. That will have the biggest impact on your credit score, along with making all your debt payments on time. END
 TITLE: How a Balance Transfer Affects Your Credit Score CONTENT: What to Do After a Balance Transfer\n-----------------------------------\nMoving your balances to one credit card will make it easier to keep track of your debt and make payments on time. Avoiding late payments is perhaps the most important thing you can do to strengthen your credit.\nTo make sure you've got a strong footing when paying off debt, there are other steps you can take once a balance transfer is complete. Follow these guidelines to keep your credit strong:\n*   **Avoid closing old credit cards.** To keep the average age of your accounts as high as possible, it's generally best to keep old, unused accounts open—especially your oldest account. If an account has a high annual fee that you're unable to afford, weigh the benefits of closing it against the drawbacks. In some cases, closing it may be the best move.\n*   **Avoid applying for new credit.** Limit the number of hard inquiries on your credit report and only apply for new credit—including loans—when you absolutely need to.\n*   **Avoid making purchases with your balance transfer card.** The best use of a balance transfer credit card is to pay off debt. Adding to that debt could make it more difficult to get rid of the balance before your promotional 0% APR offer ends. After the promotional APR period ends, your APR will jump—and if interest accrues on an outstanding balance, you could negate any savings the promotional period provided.\n*   **Set up autopay.** Make all your monthly payments on time to protect your credit score, as credit score calculations generally weight your payment history quite heavily. You can set up automatic payments from your checking account to your credit card for a specific amount each month. Ideally, it should be enough to allow you to pay off the total balance within the 0% APR period.\n*   **Create a budget.** To avoid accruing additional debt, make a budget and regularly track your spending. Get clear on your take-home pay, and how much of it goes toward necessities, luxuries and savings. The process of building a budget can be a helpful exercise in itself; it can help you notice recurring expenses, like a gym membership, that you don't use and can safely cancel to quickly save money.\n*   **Pay down debt.** Calculate how much you'll need to put toward your credit card payment each month to get out of debt, and stick to it. Look for ways to stay motivated, perhaps by treating yourself to small rewards at certain milestones, or checking in regularly with a friend who's also trying to get out of debt. You can share frustrations and triumphs and inspire each other to keep going. END
 TITLE: How a Balance Transfer Affects Your Credit Score CONTENT: The Bottom Line\n---------------\nA balance transfer credit card may negatively impact your credit in the short term. But if used appropriately, it can be part of a strategy to improve your score overall. Make sure to create a debt payoff plan, and follow through on it, so you take advantage of the interest savings a balance transfer provides. Then you'll not only experience the credit score benefits of debt freedom, but also the peace of mind it brings. END
 TITLE: Getting Married? Here’s How It Affects Your Credit CONTENT: Will Getting Married Hurt My Credit?\n------------------------------------\nGetting married won't directly affect your credit. You'll continue to have your own credit report that lists accounts open only in your name and accounts you cosigned. Your spouse's accounts won't show up, and your credit reports won't be consolidated.\nOnce you and your spouse apply for credit together, the activity on the account could start affecting each of your credit. Say you jointly apply for a car loan or mortgage. If your spouse is responsible for paying the bill and misses a payment, both your credit scores will suffer.\nOr, say you add your spouse to your credit card account as an authorized user and they charge more on the card than either of you can afford. That could result in a higher credit utilization rate, or the amount owed on your card relative to its limit, negatively affecting your credit score. You also could accrue interest charges if you can't pay the full balance each month.\nYour credit could be hurt if your spouse has late payments in their credit history and you're added as a joint account holder to one of those accounts. It's best to take a close look at each other's credit reports to avoid making decisions with unintended consequences. END
 TITLE: Getting Married? Here’s How It Affects Your Credit CONTENT: What if My Spouse Has Bad Credit?\n---------------------------------\nA spouse's poor credit score won't immediately affect your own. It could be an indicator that they struggle to stick to a budget or manage their own finances. On the other hand, it could be a result of past mistakes that they learned from and haven't repeated. To find out, have a candid conversation about what contributed to their score and how they're addressing it before tying the knot.\nIn the meantime, if you want to get a loan with a spouse who has bad credit, it could lead to disappointment. When you apply for a mortgage as co-borrowers, for instance, lenders typically use the lowest credit score between you two when assessing the application, according to the Consumer Financial Protection Bureau. You could apply as an individual borrower, but only your income would be considered, and you might not qualify for as large a mortgage. You also could run into trouble if you're looking to rent an apartment together, since landlords often check credit as part of the rental application process. END
 TITLE: Getting Married? Here’s How It Affects Your Credit CONTENT: Do I Get a New Credit Report if I Change My Name?\n-------------------------------------------------\nYou will not automatically get a new credit report if you change your name after marriage. Your new name will be added to your existing credit report once you make the change with each creditor. That means alerting each credit card company, lender and bank that you have financial accounts about the change. Your new last name will also appear on the credit report when you use it to apply for credit. END
 TITLE: Getting Married? Here’s How It Affects Your Credit CONTENT: Will I Be Responsible for My Spouse's Debt After We Get Married?\n----------------------------------------------------------------\nDebt each of you took on before getting married will stay the sole responsibility of the individual. If your spouse has student loans in their name from before the marriage, those loans stay theirs. If you help them pay off the loans, that arrangement is between the two of you, but you're not on the hook for them.\nOnce you're married, though, the game changes. You're both responsible for repaying money you borrow together. If you live in a community property state—Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington or Wisconsin—a spouse could share in the responsibility for repaying any debts taken on by a partner during the marriage. If you get legally separated or divorced, you may not be required to pay off a spouse's debt, depending on why your spouse borrowed the money. END
 TITLE: Getting Married? Here’s How It Affects Your Credit CONTENT: The Bottom Line\n---------------\nGetting married is a weighty—and exhilarating—decision for many reasons, but don't ignore the financial aspects of your new life. Your spouse's credit score won't necessarily affect yours right away, but their actions will affect your ability to jointly qualify for credit and what you might be obligated to repay, depending on where you live.\nCommunication is key in all aspects of a relationship, but considering how much credit history can influence your future together, it's crucial when it comes to finances too. END
 TITLE: 8 Ways to Save When You’re Moving CONTENT: 1\\. Avoid Moving During Summer and on Weekends\n----------------------------------------------\nYou can't always control when you move. But since nearly half of all moves take place from June through September, according to the American Moving & Storage Association, you'll pay less for professional movers if you move outside that time frame. That's because demand is lower. The same goes for mid-month and midweek moves. Avoid the first and last weekends of the month in particular, if possible. END
 TITLE: 8 Ways to Save When You’re Moving CONTENT: 2\\. Choose a Reputable Moving Company\n-------------------------------------\nWhile professional movers may seem pricey, going with a low-cost or questionable company could lead to even pricier damages.\nYou can search for interstate movers registered with the Federal Motor Carrier Safety Administration on its Protect Your Move website, which also shows companies' customer complaint histories. You can also compare quotes from interstate movers who participate in the American Moving & Storage Association's ProMover program, which requires passing a background check and upholding the association's code of ethics.\nIf your move is in-state, search for trustworthy movers using your state's moving association website. END
 TITLE: 8 Ways to Save When You’re Moving CONTENT: 3\\. Consider DIY Methods\n------------------------\nNot all moves necessitate the professional treatment—especially if you can't afford it once you get a quote. Instead, you could pay for packing services only, then rent a van or truck and make the drive yourself. Another option is to rent a moving container, load it on your own time and pay the company to drive it to your destination. The container rental company PODS estimates that a local move using its service costs $299 to $499, while a long-distance move costs $1,499 to $2,999. END
 TITLE: 8 Ways to Save When You’re Moving CONTENT: 4\\. Move Items by Freight\n-------------------------\nIf you're moving long distance, especially if you have a lot of stuff, using a freight service can save you money compared with full-service movers. Similar to a moving container company, the freight service will bring a trailer to you, which you'll pack with your things within three business days. You'll pay for only the space you use, and the company will drive the trailer to your new home. END
 TITLE: 8 Ways to Save When You’re Moving CONTENT: 5\\. Take the Opportunity to Downsize\n------------------------------------\nMoving is a prime time to evaluate the things you own and whether it's time to sell or donate some of them. When you downsize, you'll save money on movers who charge you by weight, and you can make money selling unwanted items. Sell furniture online through platforms like Facebook Marketplace, Craigslist and Letgo; to sell clothing, thredUP, The RealReal and Poshmark are options. END
 TITLE: 8 Ways to Save When You’re Moving CONTENT: 6\\. Take Advantage of Discounts\n-------------------------------\nIt's smart to submit a request with the U.S. Postal Service (USPS) to change your address, which costs $1.05, so your mail can be forwarded to your new place. But doing so isn't just for convenience; it will also get you access to a package of coupons from major retailers, sent via email or snail mail. That can help offset the cost of new furniture or home improvements. The USPS says the discounts are worth more than $750 in savings.\nIf you're an AAA member, you can access discounts at certain car and truck rental companies you may use during the move. Some truck rental companies also offer discounts to members of the military and college students. END
 TITLE: 8 Ways to Save When You’re Moving CONTENT: 7\\. Make Use of Credit Card Rewards\n-----------------------------------\nIdeally, you'll save for a move in advance to avoid paying interest on expenses put on a credit card. If you're expecting to spend a significant amount on the move and in the few months thereafter—on new furniture and home upgrades, perhaps—you might spend enough to get a sign-up bonus on a new credit card. That can help offset your moving expenses.\nYou'll likely need a good or excellent credit score, which is 670 or higher on FICO's 850-point scale, to qualify for credit cards with hefty bonuses. And it's crucial to pay off your balance each month to avoid increasing your credit utilization rate, which can affect your credit score.\nBut if you get a card that gives you $300 back after spending $3,000 in the first three months, for instance, that could make a dent during an expensive time. Make sure the card you choose is the right pick for your spending style and preferences long term, and that its fees and interest charges don't catch you by surprise.\nIf you're moving on short notice and don't have enough cash saved to pay for it outright, consider applying for a balance transfer credit card after the fact, if you qualify, to save money on interest. You'll have a period of time to pay down the costs of moving at 0% APR, which can be a good deal as long as you don't add to your debt with new charges. END
 TITLE: 8 Ways to Save When You’re Moving CONTENT: 8\\. Negotiate for Relocation Reimbursement\n------------------------------------------\nIf you're moving for your current job or for a new job, your company may pay your relocation expenses. When you receive a relocation package, understand precisely what's included and ask for additional assistance if necessary.\nYou can request that your employer cover temporary housing while you look for a new place, for instance; pay for packing services during the move; or compensate you in return for breaking a lease and forfeiting the security deposit on your current apartment. Don't be too shy to negotiate for reimbursement for unforeseen costs. You'll never know what the company is willing to cover unless you ask. END
 TITLE: Can You Refinance a Student Loan to a Term Longer Than 20 Years? CONTENT: How Student Loan Financing Works\n--------------------------------\nWhen you refinance a student loan, much like a mortgage, a lender will qualify you for a new interest rate based on your creditworthiness.\nIdeally, you'll receive a new rate that's lower than the original student loan interest rate you received, thanks to your stronger current financial standing (or the use of a cosigner if you have one). Student loan refinancing generally requires good or excellent credit, meaning a score of 670 or higher, and lenders will also look at your income and the amount of debt you have relative to it.\nPrivate student loans, whose interest rates are often higher than federal loans' rates, are especially good candidates for refinancing. Federal student loans also come with unique benefits, like longer payment-postponement periods and forgiveness programs, that you'll lose when you refinance them. Make sure you're willing to give up these protections when you refinance a federal loan.\nIf you're approved, the refinance lender will pay off your existing loan, or multiple loans if you choose to refinance several, and issue you a new loan at the rate you're eligible for. You'll make payments to your new lender according to the terms of the loan agreement. END
 TITLE: Can You Refinance a Student Loan to a Term Longer Than 20 Years? CONTENT: Choosing a Loan Term\n--------------------\nU-fi, a student loan refinance lender, offers a 25-year loan term, but it's one of the only lenders to do so. You must have a $25,000 minimum loan balance and choose a variable interest rate in order to get it.\nA 25-year loan term isn't ideal. To save the most money on interest, choose the shortest loan term you can manage when refinancing. That may mean the monthly payment on your student loans doesn't drop. Instead, you'll pay the same, or even more, per month. But by the time you've paid off your refinanced loans, you'll have paid less interest than if you hadn't refinanced.\nHere's how it works. If you have $25,000 and seven years left on your student loans at a 6% average interest rate, you'll pay $365 per month and $5,678 in interest overall. Refinance that amount to a five-year term at 4% interest and you'll pay $460 per month, but $2,625 in interest. You'll save more than $3,000 over time by refinancing, though your monthly payment won't decrease. A 25-year term would bring your monthly payment down to $132, but you'd pay a massive $14,588 in interest.\nFive years is generally the shortest loan term you'll find. Several lenders—SoFi, Citizens Bank, CommonBond and Education Loan Finance, for instance—make loans that last five, seven, 10, 15 or 20 years. Others, like PenFed by Purefy, offer five-, eight-, 12- and 15-year terms. Earnest provides custom term lengths that can last between five and 20 years. END
 TITLE: Can You Refinance a Student Loan to a Term Longer Than 20 Years? CONTENT: Other Ways to Get Longer Student Loans\n--------------------------------------\nRefinancing may not be right for you if you're looking for a longer term because you want, or need, a lower monthly payment. Your income may not meet refinancing lenders' requirements. You may be better off not refinancing federal loans in particular so you can take advantage of their benefits for struggling borrowers.\nThese benefits include income-driven repayment plans, which lower monthly payments to a percentage of your income. Some income-driven plans extend your loan term to 25 years—and they all offer forgiveness on the remaining balance.\nYou may also wish to consolidate your federal student loans, which provides a single monthly payment, like refinancing, and a loan term of up to 30 years depending on your balance. But you'll pay more in interest if you take longer to repay a federal consolidation loan, and you won't receive forgiveness when your loan term is up. Consolidation is most helpful if you need to use it to qualify certain loan types for:\n*   An income-driven repayment plan\n*   The Public Service Loan Forgiveness program, which offers tax-free federal loan forgiveness after 120 monthly payments to certain public service workers\nTake care when considering refinancing student loans to a longer than 20-year term. You may not see the interest savings that make refinancing worthwhile. Seeking a longer term might mean it's time to consider alternatives that make your loans more affordable instead. END
 TITLE: Should You Cancel Unused Credit Cards or Keep Them? CONTENT: How Canceling Your Unused Credit Card Impacts Credit\n----------------------------------------------------\nIt might sound counterintuitive to keep a credit card account open if you're not using it. That's especially true if you believe closing an account will keep you from overspending—which is a sound impulse. But closing a credit card could negatively affect your credit score. Here's how:\n*   **Increased credit utilization**: Your credit utilization rate is the amount of revolving debt you currently have compared to your total credit limit. The lower the rate, the better. That shows lenders you're not maxing out your cards, and you can be trusted to use credit responsibly if they extend it to you.\nGetting rid of a credit account affects the amount of credit you have available. For instance, if you have a credit card with a $2,000 credit line and another with a $3,000 credit line, your total available credit is $5,000. If you currently have $1,000 in debt between the two cards, your credit utilization rate is 20%.\nSay your $1,000 balance is on the card with the higher credit limit, and you decide to close the other. When you close the card with a $2,000 credit line, your available credit decreases to $3,000 total. With $1,000 in credit card debt, your utilization rate jumps to about 33%. Credit utilization accounts for 30% of your FICO® Score☉ , the most common score used by lenders, so this change can have a significant impact on your score.\nExperts recommend keeping your credit utilization below 30% at all times, and the closer to zero, the better. Assess how closing an account would affect your credit utilization before doing so.\n*   **Decreased average age of accounts**: A less weighty factor in your credit score is your length of credit history, or how long you've been actively using credit. This accounts for 15% of your FICO® Score. Closing a credit card account—especially the oldest one—reduces the average age of your accounts.\nIn our example above, let's say you've had the card with the $2,000 limit for eight years and the one with the $3,000 limit for two years. Closing the card with the $2,000 limit means your only open credit card account would be two years old. Other accounts, such as student loans and auto loans, would still be factored in to the average age. But keeping your oldest account open is generally your best bet so you don't drastically, and inadvertently, shorten the length of your credit history. END
 TITLE: Should You Cancel Unused Credit Cards or Keep Them? CONTENT: When It Makes Sense to Keep an Unused Credit Card\n-------------------------------------------------\nParticularly if you're planning to apply for new credit soon—in the form of a mortgage or an auto loan, for instance—keeping unused credit cards open can help protect a good credit score.\nCheck your credit report to identify your oldest credit card account and plan, in most cases, to keep it open. That's also a smart idea when the card you're considering closing has a high credit limit and cancelling it would greatly reduce your amount of available credit.\nIf you're concerned about the temptation to spend, place the card in a space that's hard to access, such as a safe deposit box, and only make one card available for emergencies. You may want to consider using cash for most purchases but placing a single recurring charge on your credit card, such as your Netflix payment, and paying it off each month by automatic debit. That will help keep your credit utilization low, your payment history spotless and your credit score in good shape.\nIf you're truly unable to control your spending and closing the account seems like the only way to appropriately manage your finances, doing so could be worth the short-term credit impact. An unused card with a high annual fee that you can't afford is also generally safe to close, as is a newly opened account that you don't use. Cancelling it will have less of a negative impact on your credit score than closing an older account. END
 TITLE: Should You Cancel Unused Credit Cards or Keep Them? CONTENT: The Bottom Line\n---------------\nKeeping credit card accounts open for as long as possible is a smart strategy for building and maintaining good credit, especially if you're planning to take out a loan in the near future. Evaluate the age of the account and its credit limit before closing it, but take stock of your spending habits and any fees associated with the card too.\nEvery financial decision is a personal one; while keeping unused accounts open is generally best, you might find that closing one is the better choice for you. END
 TITLE: Here’s What to Do If You Can’t Pay Your Taxes CONTENT: How Does Not Paying Taxes Hurt Your Finances?\n---------------------------------------------\nAvoiding a tax bill and opting not to pay—or not filing at all when you're required to—won't cause the IRS to forget about what you owe. In fact, ignoring a tax bill can lead to high penalties and accrued interest that greatly increase the amount you'll ultimately have to pay back. For example, if you don't file by the federal deadline (which the IRS extended to May 17 this year) and it turns out you owe tax, the IRS will charge you 5% of the unpaid tax you owe per month for up to five months, to a maximum of 25%. If you file more than 60 days late, you'll pay a minimum late filing fee adjusted annually ($435 for tax returns filed in 2021), or 100% of the unpaid tax as a penalty—whichever is less.\nYou'll also pay a penalty if you do file your return but don't pay the taxes you owe by May 17. That penalty is 0.5% of the unpaid balance per month for up to five months, up to a maximum of 25%. The penalty rises to 1% per month if you don't pay within 10 days of receiving a notice that the IRS may levy your property, meaning it may seize your property (including cash savings and retirement accounts) or garnish your income. The IRS may also file a lien against property you own in order to establish their claim against it. When a lien is in place, the IRS can collect part of the proceeds to pay off the tax debt if you sell the property.\nA tax lien could also affect the likelihood you'll qualify for credit in the future. Tax liens won't be placed on your credit report, so lenders won't be able to see the lien simply by performing a credit check. The lien itself won't affect your credit scores, either. However, some lenders, particularly mortgage lenders, may perform a public records search during the application process, and the lien will be visible there. That could prevent you from qualifying for a loan.\nThen there's interest on unpaid tax: You'll pay the federal short-term interest rate (0.12% as of February 2021) plus 3% from your filing deadline to the date the tax is paid. For the first quarter of 2021, the interest rate for individuals is 3%. END
 TITLE: Here’s What to Do If You Can’t Pay Your Taxes CONTENT: Ways to Get Tax Relief\n----------------------\nThe most important thing to remember about having trouble paying taxes is that you're not on your own. The IRS has multiple programs in place to help, and many others before you have taken advantage of them. It's worth it to reach out for assistance if you need it. You can discuss your payment options with the IRS by calling 800-829-1040. Here are some examples of what's available:\n*   **Payment extension**: You can get up to 120 days to pay in full by agreeing to a \"full payment agreement\" with the IRS. Penalties and fees will continue to add up. Some taxpayers can get an extension of up to 180 days.\n*   **IRS installment agreement**: The IRS offers monthly payment arrangements if you're unable to pay your full bill by the deadline, or within 120 days. You can pay by direct debit, credit card, payroll deduction or a number of other methods, depending on the balance owed. You'll pay a user fee for entering a payment plan, but if your income falls beneath certain thresholds, you may be exempt from the fee. The amount you must pay to set up the plan also depends on whether it's a long-term or short-term payment agreement.\n*   **Offer in compromise**: If you'd like to enter an installment agreement but cannot afford to pay your tax bill in full, you can coordinate with the IRS to pay less than you owe—by a certain deadline. This arrangement is called an offer in compromise or partial payment installment agreement. You must be up to date on all filing deadlines to qualify for an offer in compromise; you can check if you meet the requirements online.\n*   **Penalty relief**: If it's your first time not being able to meet your tax obligations, you can apply for a first-time penalty abatement, which can eliminate penalties for failing to file or failing to pay on time.\n*   **Temporary collection relief**: If you can't currently pay your taxes due to a demonstrable financial hardship, you can arrange with the IRS to temporarily delay collection of the debt. Penalties and interest will continue to accrue. END
 TITLE: Here’s What to Do If You Can’t Pay Your Taxes CONTENT: What to Do if You Can't Get Tax Relief\n--------------------------------------\nIn nearly all cases, an official method of relief will be available to you. But aside from an IRS payment arrangement, you do have the option to pay taxes with a credit card or a personal loan. These aren't always the wisest options, however, since using a credit card will mean incurring extra fees and increasing your credit utilization. A personal loan will add an installment debt to your bottom line—potentially at a higher interest rate than what you'd pay through the IRS for a payment plan, depending on your credit score.\nNo matter what, when it becomes clear that you'll be unable to meet your tax obligations, it's important to take action as quickly as possible. You might start by paying whatever you can now to show the IRS that you're committed to paying your bill eventually. Then, get in touch with the IRS to identify options for paying over time or getting a penalty abatement; this can help prevent an unwanted outcome like a tax lien or outsize fees.\nIf debts and other financial needs are making it impossible to meet your tax obligations, you might also look into credit counseling and financial assistance. A credit counselor can work with you to take care of your debts and free up some space in your budget. And if you're in need of financial help, there are resources out there that can help you take care of bills, pay for food and connect you with government aid programs. END
 TITLE: Here’s What to Do If You Can’t Pay Your Taxes CONTENT: Moving Forward From Tax Troubles\n--------------------------------\nLike any other type of debt, unpaid tax can feel like a weight on your shoulders. That feeling doesn't have to be permanent, however, and there are many structured paths out of it. Make a plan to pay what you can afford, in consultation with the IRS, and you can move forward without tax concerns troubling you. END
 TITLE: Can You Get a Loan Without a Bank Account? CONTENT: Why Is It Difficult to Get a Loan Without a Bank Account?\n---------------------------------------------------------\nLenders may ask for your bank history when you apply for a loan because it helps them verify your income and gives them an idea of whether you have the cash to keep up with payments.\nWithout bank history to verify your cash flow, lenders could find it difficult to assess the risk of lending to you. Ultimately, lenders want assurance that you'll repay a loan. Without statements to prove you can manage payments, it could be harder to determine if you're eligible.\nLenders that offer personal loans may also require that you have a bank account because that's where funds are deposited and that's where payments will come from. END
 TITLE: Can You Get a Loan Without a Bank Account? CONTENT: Do All Lenders Require Bank Accounts?\n-------------------------------------\nHaving a bank account isn't universally required to borrow money, but lenders who don't require it may be offering subprime loans. \"Subprime\" in this case describes loans that carry high interest rates and fees that are marketed to borrowers who may have a hard time repaying debt, such as those with a low income or bad credit. Certain loans and credit cards can be very helpful to these borrowers—such as government-backed mortgages and secured credit cards—but other types of subprime loans are best to avoid, and may not require a bank account.\nPayday, pawnshop loans and title loans are three types of loans where a bank account may not be necessary. Here's how each works:\n*   **Payday loans**: Payday loans are short-term loans that allow you to borrow a small sum of money (usually $500 or less) until your next paycheck. Payday lenders may ask for a bank account, but sometimes a prepaid card account may be enough to qualify.\n*   **Pawnshop loans**: Pawnshop loans are loans where property of value—such as jewelry or machinery—is used as collateral for the amount you borrow. The lender might give you cash and will hold on to the item until you repay the loan.\n*   **Title loans**: Title loans are loans backed by a car without a lien. You can still drive your car around, but the lender holds the title to your car until you pay off the loan. If you miss payments, the lender may have the right to take your car.\nHowever, payday, pawnshop and title loans are notoriously expensive. The annual percentage rate (APR) on these loans could be 400% or more, and the terms can be restrictive. For comparison, the average APR on a 24-month loan is 9.46%, according to Federal Reserve data for February 2021.\nBecause these loans cost so much and may be difficult to repay, it's almost always best to avoid them. If you can't pay the loan back promptly, fees can add up, leading to a debt trap that's hard to get out of. END
 TITLE: Can You Get a Loan Without a Bank Account? CONTENT: Can You Build Credit Without a Bank Account?\n--------------------------------------------\nCredit card applications may not always require bank information, but you'll have to make sure that the card offers payment options besides bank transfers if you don't have a bank account. Opening a card and making on-time payments could help you build positive credit history and better position you to qualify for future loans.\nIf having a limited or bad credit history is making it hard to qualify for a loan or an unsecured credit card, a secured card or credit-builder loan could help. Here's how both work: END
 TITLE: Can You Get a Loan Without a Bank Account? CONTENT: Consider Opening a Bank Account\n-------------------------------\nOpening a bank account could make it easier to qualify for a loan, but getting an account could be easier said than done. If part of the reason you don't have a bank account is that you've had a lot of overdrafts or unpaid fees in the past and can't get approved for a new account, you may still have options.\nSecond-chance bank accounts offered by credit unions and banks are designed to give second chances to people who have less-than-perfect banking history. BBVA USA and PNC are two examples of financial institutions that offer second-chance accounts.\nYou may have options with online banks as well. Chime offers second-chance online bank accounts where your application isn't run through ChexSystems, which is essentially a background check system for bank accounts.\nIf you're hesitant to open a bank account because you're worried about fees and the minimum deposit required, there are options that have low fees and no minimum balance requirement. Since terms can vary widely from one account to the next, the best way to choose a bank account is by comparing features, fees and conditions across multiple institutions, including both traditional and online banks as well as credit unions. END
 TITLE: Is Getting a Home Improvement Loan Worth It? CONTENT: How Do Home Improvements Affect Your Home's Value?\n--------------------------------------------------\nHomeowners often assume home improvements pay for themselves by boosting a home's value. However, it's important to know that home improvements won't increase your home's value dollar for dollar.\nRemodeling Magazine annually compiles the average cost and ROI of common home improvement projects. According to 2021 data, a minor kitchen remodel recoups 72% of its value; adding an upscale master suite has an ROI of just 48%.\nUnless you expect to sell soon, you should do home improvements to make your home more livable, not just because you think they will increase resale value. If you do plan to sell your home, a real estate professional can help you determine the most profitable improvements. END
 TITLE: Is Getting a Home Improvement Loan Worth It? CONTENT: What to Consider Before Getting a Home Improvement Loan\n-------------------------------------------------------\nWhen deciding if a home improvement loan is worthwhile, consider:\n*   **Project cost**: Get estimates for materials and labor. If the project is relatively inexpensive, could you take some time to save money and pay cash instead?\n*   **Your equity**: The amount of equity you have in your home often determines how much you can borrow. Real estate websites or local realtors can help estimate the value of your home. Subtract what you owe on your mortgage from the value of your house, and you'll get an idea of how much equity you have.\n*   **Your budget**: If you're looking for a loan with low monthly payments, you'll generally have a longer repayment term. Take into consideration the loan term you'll need and how much it will cost you in interest.\n*   **Your debt-to-income ratio (DTI)**: DTI measures how much of your gross monthly income goes to pay debt. Lenders typically prefer a DTI of 43% or less.\n*   **How long you'll be in the home**: If you expect to move within five years, a big project may not be worth the cost. Major home improvements make more sense if you plan to stay put for five years or more. END
 TITLE: Is Getting a Home Improvement Loan Worth It? CONTENT: What Kind of Home Improvement Loan Should You Get?\n--------------------------------------------------\nThere are many home improvement loan options, each with their own pros and cons.\n*   **A cash-out refinance** replaces your existing mortgage with a larger mortgage; you receive the difference between the two, minus closing costs, in cash. You can generally borrow 80% to 85% of your home's value, and may also be able to lower your mortgage interest rate and reduce (or extend) your loan term. Interest may be tax-deductible.\n*   A **home equity loan** uses your equity as collateral. You can usually borrow 75% to 85% of your equity and repay it in fixed monthly installments over five to 30 years. Interest may be tax-deductible.\n*   **A home equity line of credit (HELOC)** uses your equity as collateral, but instead of receiving a lump sum, you get a credit line to draw from as needed. You can typically borrow 60% to 85% of your equity; interest may be tax-deductible.\n*   **Personal loans** are usually unsecured, so you don't need equity and you won't put your home at risk. However, personal loans generally have higher interest rates than secured loans and a shorter repayment period; interest isn't tax-deductible.\nMortgages, home equity loans and HELOCs usually charge lower interest rates than personal loans, but if you don't repay them, you could lose your home. If you don't want to use your home as collateral, consider a personal loan.\nOnline lender SoFi offers unsecured personal loans up to $100,000, enough for even major home improvements. Loans have fixed interest rates, no origination fees and repayment terms from 24 to 84 months. You'll need a high income, low DTI and good to excellent credit to qualify.\nIf your credit is only fair, online lender Avant offers unsecured personal loans up to $35,000 with repayment terms of 24 to 60 months and competitive interest rates. (The company also offers secured loans of up to $25,000 using the borrower's vehicle as collateral.) An administrative fee of up to 4.75% of the loan amount could add up, and the annual percentage rate (APR) can be up to 35.99% depending on your credit. END
 TITLE: Is Getting a Home Improvement Loan Worth It? CONTENT: What Credit Score Do You Need for a Home Improvement Loan?\n----------------------------------------------------------\nQualifying for a home equity loan, cash-out refinance or HELOC generally requires good to excellent credit (a FICO® Score☉ of 670 or more). If your credit is fair (a FICO® Score of 580 to 669), you may still be able to get a loan, but it will likely have a higher interest rate, so you'll pay more over time.\nBefore applying for a home improvement loan, check your credit report and credit score. If your credit score needs a boost, try these steps to improve it:\n*   **Pay down credit card debt.** Your credit utilization rate should be well under 30% of your available credit.\n*   **Bring any late accounts current.**\n*   **Make all your debt payments on time.**\n*   **Don't apply for any other new credit.**\n*   **Sign up for Experian Boost™†** This free service adds on-time utility, cellphone and streaming service payments to your credit report, potentially giving your FICO® Score an instant boost.\n*   **Dispute any inaccurate information** in your credit report. END
 TITLE: Is Getting a Home Improvement Loan Worth It? CONTENT: Where to Get a Home Improvement Loan\n------------------------------------\nConsidering a cash-out refinance, home equity loan or HELOC? Contact your current mortgage lender to see what they can offer. Then get offers from other mortgage or home equity lenders, comparing interest rates, closing costs, repayment terms and fees. Consider using a mortgage broker who can get quotes and information from several lenders.\nPersonal loans are available from banks, credit unions and online-only lenders. Begin with your existing bank or credit union, then shop around. But don't drag the process out too long. When you apply for a loan and the lender checks your credit, it causes a hard inquiry into your credit report, which can temporarily ding your score by a few points. Too many hard inquiries can negatively affect your credit score. Complete all your loan applications within two weeks, however, and they'll be treated as one inquiry.\nSome lenders will prequalify you for a loan, which counts as a soft inquiry and won't impact your credit score. Experian CreditMatch™ can match you with lenders that fit your credit profile. END
 TITLE: Is Getting a Home Improvement Loan Worth It? CONTENT: Choosing the Right Home Improvement Option\n------------------------------------------\nHaving good credit gives you more options for financing home improvements. Check your credit score before applying for a loan to identify loans you're likely to qualify for. Repaying a home improvement loan on time could help boost your credit score. Carefully considering the benefits and risks of borrowing to pay for home improvements will help you make the right decision. END
 TITLE: All You Need to Know About Balance Transfer Credit Cards CONTENT: How Does a Balance Transfer Credit Card Work?\n---------------------------------------------\nWhen you want to move debt to a balance transfer credit card, you'll first apply for the card you've identified as the best option for you (more on how to decide later). If you're approved, the credit card company will determine your credit limit based on factors like your credit history and income. That limit is the total amount of existing debt you're eligible to transfer to the new card.\nYou'll then request that the credit card company transfer balances to the new card, and specify how much of those balances to move. If you have $2,000 on a Chase card and $3,000 on a Discover card, for instance, and transfer both balances to an American Express card, you'll now have a balance of $5,000 with American Express. The new company will pay off your previous debts, which could take up to a few weeks. In the meantime, continue to make minimum payments toward your prior debts until you've confirmed the transfer to the new card is complete.\nHigh interest credit card debt is an excellent candidate for a balance transfer, though you generally can't transfer a balance from one card to another that's issued by the same company. You may be able to transfer other types of loans to the card, depending on the credit card issuer, but check with the one you're interested in about its policies before applying. END
 TITLE: All You Need to Know About Balance Transfer Credit Cards CONTENT: When to Consider Using a Balance Transfer Credit Card\n-----------------------------------------------------\nA balance transfer is only a good idea when it will allow you to save money. That means the APR on the balance transfer card must be lower than your current APR, and you must be able to pay off the debt you transfer before the promotional period ends. If you're given 15 months at 0% APR, make a plan to pay off the debt within those 15 months, before your APR jumps.\nBalance transfer credit cards are generally only available to those with good or excellent credit, or a credit score of 670 or higher. That means you're ready to consider getting a balance transfer card once your credit score qualifies you for one. END
 TITLE: All You Need to Know About Balance Transfer Credit Cards CONTENT: Downsides of Using a Balance Transfer Credit Card\n-------------------------------------------------\nNot everyone will qualify for a balance transfer credit card. If your credit score isn't yet in the good or excellent range, work on improving it by checking your credit report for errors, paying down balances, making all payments on time and avoiding opening new lines of credit unless you need them.\nYou'll likely pay a balance transfer fee, which is calculated as a percentage of each transfer. Your credit could also take a temporary hit as a result of your application for new credit. If you stand to save a significant amount in interest, however, the pros of using a balance transfer card could outweigh the cons. END
 TITLE: All You Need to Know About Balance Transfer Credit Cards CONTENT: What Are Balance Transfer Fees?\n-------------------------------\nMost cards charge a balance transfer fee whenever you move a balance to them—typically 3% or 5% of the transferred amount. But some cards don't charge balance transfer fees, often for a specified period of time. The ideal scenario is to simultaneously pay no balance transfer fee and to make use of a 0% APR offer, which would make the transfer free.\nIf you don't qualify for a card with one of these offers, it's generally best to go for a card that charges 0% APR over a card with a lower balance transfer fee. In many cases, paying the fee is worth it to avoid paying interest as you get rid of debt. END
 TITLE: All You Need to Know About Balance Transfer Credit Cards CONTENT: How Does a Balance Transfer Affect Credit?\n------------------------------------------\nA balance transfer can impact credit in the following ways, which are important to consider when deciding whether to pursue it.\n*   **A balance transfer will result in a hard inquiry.** Whenever you apply for new credit, a hard inquiry appears on your credit report. That shows lenders how often you're seeking additional credit lines. Many hard inquiries in a short period of time could be a warning sign that you're not using credit responsibly. A hard inquiry stays on your credit report for about two years, but its effect diminishes over time—and is less consequential than whether you've paid bills by the due date or kept debt balances low.\n*   **A balance transfer can lower your credit utilization rate.** The amount of debt you use compared to your credit limit is called your credit utilization rate. A $1,000 balance on a card with a $5,000 limit translates to a 20% utilization rate, for instance. Keeping your utilization under about 30% will help you avoid negatively impacting your credit.  \n    When you apply for a new card and receive an additional credit limit, the total available credit across all of your cards increases. In other words, you still have debt, but it's a smaller portion of your total credit line. Plus, since the debts you transferred are no longer on your previous cards, your new utilization on those cards is 0%. This change in credit utilization can strengthen your credit score, as long as you don't continue adding to the debt and you pay it off over time. END
 TITLE: All You Need to Know About Balance Transfer Credit Cards CONTENT: How to Get a Balance Transfer Credit Card\n-----------------------------------------\nWhen shopping for a balance transfer credit card, first evaluate your credit score to determine whether you're likely to qualify. Then take a look at each balance transfer credit card's features, including its:\n*   **Introductory balance transfer APR**: How much you'll pay on transferred balances during the promotional period (ideally 0%).\n*   **Length of promotional period**: How many months you'll have to pay down balances at 0% APR, and whether you need to transfer balances within a certain time frame.\n*   **Introductory purchase APR**: How much you'll pay on new purchases you make with the card, if there's an introductory rate.\n*   **Ongoing, or standard, APR**: How much you'll pay on transferred balances and purchases after the promotional period is over.\n*   **Fees**: How much the card charges in balance transfer fees, annual fees, late fees and foreign transaction fees if you're a frequent traveler.\n*   **Additional perks**: Some balance transfer cards offer cash back rewards, but tread lightly during the promotional period—that may entice you to spend, when your goal should be to get rid of debt. END
 TITLE: All You Need to Know About Balance Transfer Credit Cards CONTENT: Is It Right for You?\n--------------------\nBalance transfer credit cards can be a strategic partner on your debt payoff journey, as long as you use them the right way: to get rid of debt at 0% APR.\nBefore deciding on a balance transfer card, understand how long you'll need to realistically pay down your current balances, and choose a card that gives you at least that much time. It's also useful to assess your budget and potentially cut expenses so you don't have to rely on credit cards during payoff—and wrap up your card's introductory period debt-free. END
 TITLE: What Is a FICO<sup>®<\/sup> Score, and Why Is It Important? CONTENT: What Is Considered a Good FICO® Score?\n--------------------------------------\nA good FICO® Score starts at 670. If your score is above 740, you can generally expect lenders to offer you better-than-average interest rates. As you move closer to the top score of 850, you'll more likely qualify for the lowest interest rates and the most premium credit card offers.\nOn the flip side, a score of 570 to 669 is considered fair, while 300 to 569 is considered poor. You can still qualify for loans and credit cards with a lower FICO® Score, but you may be required to pay higher interest rates, make a bigger down payment or pay additional fees. Even landlords may require a credit check before they will rent you an apartment. So a lower credit score could put you at risk for securing a place. END
 TITLE: What Is a FICO<sup>®<\/sup> Score, and Why Is It Important? CONTENT: Why Do I Have Different FICO® Scores?\n-------------------------------------\nFICO, which stands for the Fair Isaac Corporation, regularly updates the formula it uses to calculate FICO® Scores.\nCurrently, most lenders use the FICO® Score 8 formula. But there is a newer version, for instance, called the FICO® Score 9, which isn't yet widely adopted. The FICO® Score 9 reduces the impact of medical debt on your score and will add in rental payments to credit reports when landlords choose to report this information. That may help people without much credit history build a credit file.\nAdditionally, there are FICO® Scores geared toward different industries, such as auto lending, mortgage lending and credit card issuing. These measure and weight your financial information in slightly different ways.\nFinally, you may see different FICO® Scores depending on the credit bureau—Experian, TransUnion or Equifax—your lender pulls your score from. The bureaus may receive information from your creditors at different times over the course of a month, which affects, for instance, the amount of credit they'll report you're using, and thus your credit score. A lender may request credit scores from multiple bureaus for that reason. END
 TITLE: What Is a FICO<sup>®<\/sup> Score, and Why Is It Important? CONTENT: How Are FICO® Scores Calculated?\n--------------------------------\nYour FICO® Scores are based on five main factors.\n*   **Payment history**: Your payment history accounts for 35% of your FICO® Score, the largest share. It's your track record of making payments on credit cards and loans. Paying all your bills on time is one of the best ways to improve your credit scores.\n*   **Credit utilization**: This accounts for about 30% of your FICO® Score. It's based on how much of the available credit on revolving credit lines, primarily credit cards, you're using. Experts say it's best to use no more than 30% of your credit at any point in the month, and for the best scores, stay under 6%. Calculate your credit utilization rate by dividing your total outstanding credit card balances by your total credit limits.\n*   **Length of credit history**: This accounts for about 15% of your FICO® Score. It refers to the amount of time you have had credit accounts open, and how recently you've used an account. A longer history is a plus.\n*   **Credit mix**: Your credit mix makes up about 10% of your FICO® Score. Credit mix means having different types of credit accounts, such as credit cards, a car loan and a mortgage. Having a wide range of accounts plays a small role in determining your FICO® Scores.\n*   **New credit**: New credit makes up about 10% of your score. Lenders typically consider it a red flag if you open up several new credit card accounts or take out new loans in a short period of time. It can signal you may be taking on too much debt and can't be relied on to repay debts on time. END
 TITLE: What Is a FICO<sup>®<\/sup> Score, and Why Is It Important? CONTENT: How Is FICO Different From VantageScore?\n----------------------------------------\nAside from FICO, there's an entirely separate credit scoring model, called the VantageScore®, which the three major credit reporting agencies released together in 2006. The average VantageScore, according to recent Experian data, is 680.\nThere are several differences between the FICO and VantageScore models. You could have a VantageScore with just one line of credit to your name, even if it's less than six months old, for instance. But you won't have a FICO® Score if you don't. Plus, a good VantageScore starts at 700, as opposed to 670 on the FICO® Score range.\nThe two scoring models also differ in the ways they weight certain financial behaviors. The latest VantageScore version is more similar to FICO® Score 9 than FICO® Score 8, which is still most widely used: It doesn't factor in paid collection accounts and reduces the impact of medical collections on credit scores. VantageScore also considers your historical credit utilization, such as how frequently you pay off your balances in full, rather than capturing it only as a snapshot like a FICO® Score does. END
 TITLE: What Is a FICO<sup>®<\/sup> Score, and Why Is It Important? CONTENT: Where Can I Get My FICO® Score?\n-------------------------------\nLots of credit card issuers and banks offer customers free FICO® Scores each month. It may be included on your billing statement, or you may be able to log in to your account to get your most recent score.\nIf you don't have a financial account with access to a free FICO® Score, you can also receive one at no cost based on your Experian credit report by registering for an account on Experian's site. END
 TITLE: What Is a FICO<sup>®<\/sup> Score, and Why Is It Important? CONTENT: How to Improve Your Credit Score\n--------------------------------\nYou can take steps to improve your credit score, such as setting up automatic bill pay so you make all monthly payments on time. You may find it makes sense to spend time strengthening your FICO® Scores before you apply for a loan or credit card.\nAs a first step, consider pulling your free credit report to make sure all the information included, which contributes to your score, is accurate and up to date. You'll also be able to assess which areas of your credit history, such as your debt balances or length of history, would benefit from some extra attention. END
 TITLE: How Do I Qualify for an FHA Home Improvement Loan? CONTENT: How Do FHA Title 1 Home Improvement Loans Work?\n-----------------------------------------------\nA traditional FHA loan is a government-backed mortgage that makes it possible to buy a home with a down payment as low as 3.5%. But what if you already own a home and need to make important updates that are beyond your budget?\nYou could apply for an FHA Title 1 Home Improvement Loan, which helps homeowners pay for certain types of work on a property. These loans are backed by the federal government (specifically the Federal Housing Administration), but homeowners apply for and obtain them from approved lenders, such as banks or credit unions. Since the loan is insured by the government, there's less risk for the lender, so they can be more lenient with borrowing criteria.\nThe loans are usually secured by your property, but if you borrow less than $7,500, you can obtain an unsecured loan. For single-family homes, homeowners can borrow up to $25,000 for a term of up to 20 years. For a manufactured home on a permanent foundation, the limit is $25,090; if the manufactured home is not on a permanent foundation, the max is $7,500. You don't need equity in your home to apply.\nThese loans can't be used for luxury items like pools or outdoor fireplaces, however, so they're less flexible than some financing options. The improvements must \"substantially protect or improve the basic livability or utility of the property,\" according to HUD. Eligible improvements include built-in appliances such as dishwashers, refrigerators or ovens; improvements that add accessibility for a disabled person; or energy-conserving and solar power improvements. You typically must show the lender the proposal or contract detailing the work to be done.\nFHA Home Improvement Loans don't cover the purchase of a home, but only updates to a property you already own. They're different from FHA 203(k) loans, which allow you to borrow money to both buy and renovate a home in a single loan. However, you can use an FHA Title 1 Home Improvement Loan concurrently with another type of mortgage to buy and renovate at the same time. While you can typically only have one FHA loan out at a time, there's no limit to how many times you can utilize FHA loans in your lifetime. END
 TITLE: How Do I Qualify for an FHA Home Improvement Loan? CONTENT: Requirements for an FHA Home Improvement Loan\n---------------------------------------------\nBefore you apply for an FHA Home Improvement Loan, make sure you're familiar with the requirements of the borrower, property and improvements. These include (but aren't limited to):\n*   Residential properties must have been occupied for at least 90 days.\n*   You must either own the home or be a long-term renter. If you lease the property, your lease must extend at least six months beyond the loan term.\n*   While there aren't specific income or credit score requirements, your credit will be checked and you must also have verifiable income or employment. In addition, your debt-to-income ratio cannot exceed 45%.\n*   You can't be delinquent or in default on another federally guaranteed loan.\n*   Loans must be used for the specific purposes mentioned above. END
 TITLE: How Do I Qualify for an FHA Home Improvement Loan? CONTENT: Just like with regular FHA loans, an FHA Home Improvement Loan is obtained through a HUD-approved lender. You can search for one in your area and find out how they process applications.\nYou can also meet with a HUD-approved counseling agency, which offers guidance on whether an FHA loan is right for you and guides you through the process if needed.\nKeep in mind that while lenders are required to offer fixed interest rates on par with market rates, the government doesn't dictate rates, so they can vary by lender. END
 TITLE: How Do I Qualify for an FHA Home Improvement Loan? CONTENT: Other Options for Home Improvement\n----------------------------------\nWhile FHA Home Improvement Loans have advantages, there are plenty of other options to obtain money for home improvement purposes, including:\n*   Home equity loan or home equity line of credit (HELOC)\n*   Cash-out refinance\n*   Personal loans\n*   Credit cards\nEach option has varying credit and equity requirements, plus their own benefits and drawbacks. For example, secured options such as a HELOC or home equity loan may be easier to qualify for and have more favorable rates than an unsecured loan. However, you must have equity in your home to be approved.\nThe amount you need to borrow and the timeline in which you can pay back the funds can also dictate the best financing option. If you are looking for a large amount that you hope to pay back over several years, for example, a credit card likely will not be your best option due the high interest costs you'll pay over time. Make sure to carefully research and compare your options. END
 TITLE: How Do I Qualify for an FHA Home Improvement Loan? CONTENT: Know Your Credit Score First\n----------------------------\nWhichever home improvement financing option you pursue, the lender will review your credit to ensure you have a solid history of paying your bills on time and can handle an additional debt. Before you apply for an FHA Home Improvement Loan or other financing, check your credit report and score to see what lenders will see. If you're not in a rush, this can also give you time to improve your credit, which can help increase your chances of getting approved for a loan and landing a lower interest rate. END
 TITLE: How to Qualify for an FHA Loan CONTENT: What Are the Requirements for an FHA Loan?\n------------------------------------------\nGovernment backing and mortgage insurance mean FHA loans can have more relaxed borrowing criteria than conventional loans. Here are some of the requirements to keep in mind when preparing to apply for an FHA loan:\n*   **FHA loans can only be used to buy a new or existing family home.** This includes homes with one to four units, certain condominium units and manufactured housing units on permanent foundation.\n*   **The property must be your primary or principal residence.** You can't use an FHA loan to finance a second home or vacation home,\n*   **The property must meet FHA appraisal standards.** This ensures the home is worth the amount of the loan, is livable and is expected to last at least as long as the term of the loan.\n*   **The size of the loan must adhere to FHA mortgage limits.** FHA loans are only available up to a certain amount, though the maximum varies by location since housing is more expensive in some areas of the country. You can find out the FHA mortgage limit in your area on the HUD website.\n*   **You must pay a mortgage insurance premium.** This protects the lender in case you are unable to repay your loan.\n*   **You need an established credit history.** Lenders review your credit report and scores as part of the mortgage application process to assess your creditworthiness and adjust loan terms accordingly. If you have a FICO score of 580 or higher, you might be eligible for an FHA loan with only 3.5% down. You could still qualify for an FHA loan if your FICO score is as low as 500, though it requires a larger down payment of 10%. To see where your credit stands, you can check your credit report for free through Experian.\n*   **You need verifiable income.** There isn't a set income requirement for FHA loans, but your lender will want to verify that you have steady income and can afford to make your monthly mortgage payments. Lenders might verify this by looking at your pay stubs, tax returns, bank statements or other documentation.\nIf you need assistance determining your eligibility for an FHA loan, find a HUD-approved housing counseling agency in your area. Their counselors can also help you navigate the application process. END
 TITLE: How to Qualify for an FHA Loan CONTENT: Can You Apply for an FHA Loan More Than Once?\n---------------------------------------------\nThere's good news and there's bad news here: FHA loans aren't limited to first-time home buyers, and there's no restriction on how many times you can take out an FHA loan in your lifetime.\nHowever, because these loans are for primary residences only, you generally can't have more than one at a time. There are some exceptions, however, such as if you're relocating for an employment-related reason or if you're permanently vacating a jointly owned property (such as in a divorce, where the co-borrower will remain there). END
 TITLE: How to Qualify for an FHA Loan CONTENT: How to Decide if an FHA Loan Is the Right Choice\n------------------------------------------------\nAn FHA loan does offer significant benefits, but it's not the right choice for every would-be homebuyer. An FHA loan could make sense for you if:\n*   **Your credit needs improvement.** Conventional mortgage loans usually require a credit score of at least 620, while FHA loans allow for lower credit scores. Even if you've had more significant credit problems, such as a bankruptcy, you could still qualify for an FHA loan.\n*   **You don't have much saved for a down payment.** Since FHA loans allow you to put down as little as 3.5%, they're an option for homebuyers who haven't been able to set aside a significant sum.\n*   **You need help with closing costs.** Conventional mortgages require borrowers to pay hefty upfront costs in addition to the down payment, which can easily total in the thousands. To help homebuyers, the FHA allows some closing costs to be rolled into the mortgage and paid over time.\nFHA loans have their advantages, but there's a trade-off in the form of the mortgage insurance. Homebuyers who take out an FHA loan must pay an upfront premium that's usually 1.75% of the base loan amount. There's also an ongoing annual mortgage insurance premium that usually costs 0.45% to 1.05% of the loan amount. This annual premium (paid in monthly installments) lasts for the life of the loan unless you refinance later on or put down 10% or more, in which case it falls off after 11 years.\nConventional loans also require mortgage insurance if your down payment is less than 20%, but the policy can be canceled once you reach 20% equity in your home. If a conventional loan is within your reach, it's worth comparing both the short-term and long-term costs since FHA mortgage insurance premiums can add up. END
 TITLE: How to Qualify for an FHA Loan CONTENT: Where to Get an FHA Loan\n------------------------\nFHA loans are backed by the government, but you apply and obtain them through FHA-approved lenders. You can find a list of approved lenders on the Housing and Urban Development (HUD) website.\nKeep in mind that because the government doesn't directly finance these loans, it doesn't set the interest rates or terms—the lenders do. That means the costs of FHA loans can vary, so it could be worth shopping around to find the best deal.\nAdditionally, while FHA loans tend to have competitive interest rates, HUD recommends homebuyers still compare FHA loans with other types of mortgages in case an FHA loan isn't the most affordable option. While FHA loan interest rates may be the lowest option for those with credit issues, a conventional loan may have better rates for those with stronger credit.\nMake sure to also familiarize yourself with other loans and grant programs for first-time homebuyers that can offer assistance. END
 TITLE: How to Qualify for an FHA Loan CONTENT: Get Your Credit Ready Before You Apply\n--------------------------------------\nThe stronger your credit score, the better chance you have of getting approved for a mortgage and nabbing a lower interest rate. Before you apply for any loan, make sure you go over your credit report to understand where your credit stands and to address any potential issues you see.\nIf possible, start reviewing your credit three to six months before you think you'll apply for a mortgage loan. This will give you some time to improve your creditworthiness by doing things like reducing credit card balances, paying off debts and taking care of any inaccuracies that might need disputing on your credit report.\nYou can get your credit reports from all three major bureaus (Experian, TransUnion and Equifax) for free through AnnualCreditReport.com. Your free credit score and report are also available directly through Experian. END
 TITLE: How to Apply for a Parent PLUS Loan CONTENT: Find Out if You're Eligible for a Parent PLUS Loan\n--------------------------------------------------\nTo be eligible for a parent PLUS loan, you must meet the following criteria:\n*   **Be the biological or adoptive parent (or stepparent in some instances) of an undergraduate student.** The student must be enrolled at least half time at an eligible institution and be your dependent.\n*   **Have a satisfactory credit history.** A low credit score won't automatically disqualify you, as there is no minimum credit score requirement for parent PLUS loans. However, applicants with an adverse credit history may not qualify. This is defined as having combined debt of $2,085 or more that is over 90 days delinquent or has been charged off or placed in collections in the past two years. Loan defaults, bankruptcies, charge-offs, write-offs of federal student aid debt and wage garnishments within the past five years are also considered adverse.\n*   **Meet the general eligibility criteria for federal student aid.** Your student should be a U.S. citizen or eligible noncitizen enrolled in a degree or certificate program and demonstrate financial need. END
 TITLE: How to Apply for a Parent PLUS Loan CONTENT: Fill Out the FAFSA and Check Your Student Aid Award\n---------------------------------------------------\nBefore you apply for a parent PLUS loan, your student needs to submit the FAFSA and receive their financial award notice. Unlike the parent PLUS loan application, the FAFSA application doesn't ask about your credit history, and there's no credit check. So, completing the FAFSA does not impact your credit score in any way.\nSchools your child has been accepted to will use the information from the completed FAFSA to determine how much financial assistance your child is eligible for. If your student has been accepted to more than one school, the financial aid awarded will likely differ for each. If at that point you determine you will need more financial assistance for your child to attend the school of their choice, you can apply for a parent PLUS loan.\nKeep in mind that your student will need to fill out the FAFSA for each school year, and you will need to apply for a new parent PLUS loan each school year you require it. END
 TITLE: How to Apply for a Parent PLUS Loan CONTENT: Determine How Much You Can Borrow\n---------------------------------\nParent PLUS loans allow you to borrow up to the cost of attendance at the college or university your child plans to attend, minus any other financial aid received. The cost of attendance includes tuition, room and board, and other educational expenses such as books. Your school will provide the cost of attendance to help you determine how much you'll need to borrow.\nBecause you can borrow up to the total cost of attendance doesn't mean you should, however. If you have savings, such as money in a 529 plan, or monetary gifts from your child's grandparents, for example, subtract those amounts from your financial need. Also consider additional ways your student can get money for college that can reduce your future financial burden, such as through scholarships and grants as well as working a part-time job while in school. END
 TITLE: How to Apply for a Parent PLUS Loan CONTENT: Fill Out and Complete Your Parent PLUS Loan Application\n-------------------------------------------------------\nYou can fill out and submit the direct PLUS loan application for parents through the Federal Student Aid website. Once you've applied, the application details will be forwarded to the school for processing. (If the college or university uses a different application process, you will receive an alert in the application portal.)\nYou will need your student's verified Federal Student Aid ID and school name to get started. The application is divided into four segments:\n*   **Loan information**: You'll enter the award year and your student's name, address, phone number, Social Security number and date of birth. In this section, you will also include the school's information, specified loan period and whether you want to defer loan payments while your student is enrolled in school and during the six-month grace period following graduation.\n*   **Borrower information**: This section asks for your citizenship status, address (mailing and permanent) and employer's information.\n*   **Review**: You will review your entries on this page and make any edits if needed.\n*   **Credit check consent**: The final page of the loan application requests your consent for a credit check. It also includes important notices and certifications you must agree to before you can submit your application.\nIf you have a security freeze in place on your credit report, reach out to the credit bureaus to have it lifted. Otherwise, your application cannot be processed.\nParent PLUS loan applicants must also complete a promissory note before loan proceeds are disbursed. This document outlines the terms and conditions of the loan and serves as a legally binding agreement indicating your promise to repay what you borrow. The document will be presented to you once you've completed the loan application. END
 TITLE: How to Apply for a Parent PLUS Loan CONTENT: What to Do if You Are Denied for a Parent PLUS Student Loan\n-----------------------------------------------------------\nIf you are denied a parent PLUS loan due to adverse credit history, you may be eligible for reconsideration if you do one of the following:\n*   Get a cosigner with good credit who agrees to repay the loan if you're unable to do so.\n*   Document the extenuating circumstance that led to the adverse credit history to be considered for a loan.\nPLUS loan credit counseling is also mandatory if you have adverse credit history and decide to get a cosigner or document extenuating circumstances to get approved for a loan.\nIf you are denied for a parent PLUS loan even after requesting reconsideration, you may need to consider other options. These include applying for a private student loan, or using your home equity through a cash-out refinance or home equity line of credit. Using your home as collateral can be risky, however, so weigh the pros and cons before taking this step. Having your child attend a lower-cost school or junior college at least temporarily is another way to reduce costs while you work on improving your credit and setting aside additional funds for college. END
 TITLE: How to Apply for a Parent PLUS Loan CONTENT: Should You Apply for a Parent PLUS Loan?\n----------------------------------------\nParent PLUS loans may be a viable option if your child needs assistance covering their higher education expenses. The application process is relatively simple and you'll be able to borrow up to the cost of attendance (minus other awarded financial aid) if necessary. If you're denied due to adverse credit history, you can request to be reconsidered by adding a cosigner to your loan application or notating the reason for your credit issues. You can also take measures to improve your credit so you have more likelihood of being approved next time.\nYou can check your free credit score and report with Experian to see where you stand before applying. Be sure to review your report to identify areas that need improvement and give yourself the best chance at getting approved. END
 TITLE: How to Avoid Student Loans CONTENT: Don't Wait for College to Start Saving\n--------------------------------------\nWhether you're a parent planning to help pay for your child's college education or you're a student, the best time to start saving for college is now.\nWhile it may be easy to stash some money in a savings account or investment account, consider opening a 529 college savings plan to take advantage of special perks. For example, as long as you use 529 plan funds for qualified educational expenses, all your contributions grow tax-free and the withdrawals are also tax-free.\nAdditionally, your state may offer other tax breaks in the form of a deduction or credit based on how much you contribute every year.\nMost 529 plans allow you to set a monthly contribution amount that will be automatically debited from your checking account to make saving easier. If you have several years before you need to pay for college, consider boosting contributions whenever your income increases or monthly expenses are reduced. Just keep in mind that if you or your child uses 529 plan money for ineligible expenses, your earnings in the account may be subject to taxes and a 10% penalty. END
 TITLE: How to Avoid Student Loans CONTENT: Formulate a Plan and Know How Much You'll Pay\n---------------------------------------------\nAs you or your child begins the process of selecting a college, look at more than just the programs and atmosphere. You'll also want to search each university's website to get information about how much you or your child can expect to pay in tuition and fees.\nYou'll also want to consider other major costs, including fees, books, supplies, equipment, food, rent and other living expenses.\nTake some time to write down all of the expenses associated with each school. This will help you not only choose the school that provides the best value for your dollar, but also get an idea of how much you need to come up with in addition to your savings. END
 TITLE: How to Avoid Student Loans CONTENT: Seek Out Scholarships, Grants, Fellowships and Assistantships\n-------------------------------------------------------------\nThere are many ways to find scholarships and other assistance for college. Your school may offer scholarships based on merit or financial need. Additionally, certain programs may offer additional scholarships that are only available to students in a given area of study.\nReview your school's financial aid website and your program's page to get an idea of what's available to you and whether you qualify.\nYou can also search websites like Scholarships.com and Fastweb. These websites host databases of millions of scholarship opportunities from private organizations. While you won't qualify for every one, you may find several for which you're an excellent fit.\nAlso, make sure you fill out the Free Application for Federal Student Aid (FAFSA) every year. If you qualify based on your family and financial situation, you may receive Pell Grants, which you don't have to repay.\nFinally, if you're planning to attend graduate school, you may also be able to obtain a fellowship or assistantship.\nA fellowship functions similarly to a scholarship and may be available for a few months up to several years based on merit. The program also typically provides the student with unique opportunities in their field of study, which could help their careers after graduation.\nIn contrast, an assistantship provides funds in exchange for part-time work in a student's field of study, typically on campus. END
 TITLE: How to Avoid Student Loans CONTENT: Look Into Work-Study Programs and Part-Time Work\n------------------------------------------------\nWork-study programs work similarly to apprenticeships in that you exchange part-time work for pay. However, work-study programs are typically provided through the federal financial aid program, and they're available to both graduate and undergraduate students. The job you do in a work-study program may or may not be related to your degree program.\nAdditionally, you may look for part-time work in other places. For example, there may be several on-campus jobs that aren't included in the work-study program that you can apply for. You may even look off-campus for job opportunities in your area. That could include a job at a local restaurant or bar, a customer service position, a gig in retail or something else.\nAs you consider working during school, make sure you can get a job with hours that align with your school schedule. Also, try to find a good balance between work and school, so you don't sacrifice your grades for an income.\nRegardless of your approach, the money you make as a college student directly impacts your need to borrow through student loans. END
 TITLE: How to Avoid Student Loans CONTENT: Consider Federal Loans if You Still Need Money\n----------------------------------------------\nWhether or not you expect to apply for student loans, it's a good idea to fill out the FAFSA every year. In addition to providing opportunities via grants and work-study programs, it also makes you eligible for federal student loans if you need them.\nUnlike private student loans, federal student loans don't require a credit check in most cases. They also provide access to loan forgiveness programs and income-driven repayment plans, neither of which is accessible to private student loan borrowers.\nAnd if you exhibit financial need, you may qualify for subsidized loans, where the federal government pays interest on your student loans while you're in school or deferment later on.\nWhile it's not ideal to borrow money to get through school, it may be necessary if you've exhausted all of your other options. On the plus side, federal student loans offer low interest rates and important perks—and can help you afford a college education by filling the funding gap. END
 TITLE: How to Avoid Student Loans CONTENT: Use Other Ways to Build Credit During College\n---------------------------------------------\nCollege is an excellent time to start building your credit history because once you graduate, you may want to borrow money to buy a car or a home. If you have a thin or nonexistent credit file, though, you'll have a difficult time getting approved on your own.\nStudent loans don't typically report to the credit bureaus while you're in school because you're not making payments. So consider using a student credit card or a credit-builder loan as a way to establish your credit history. With both options, make your payments on time and in full to avoid late fees—and, in the case of the credit card, interest charges. It's also important with a credit card to keep your balance low relative to its credit limit.\nYou can also sign up for a credit monitoring service, so you can keep track of your progress once you've developed a credit score. The process of building credit can take time, but the sooner you start, the better off you'll be in the long run. END
 TITLE: What Are the Cheapest Hybrid and Electric Vehicles? CONTENT: The Top Electric and Hybrid Models and Their Costs\n--------------------------------------------------\nThere are several factors to consider when deciding which type of vehicle to purchase. For some drivers, cost is the most important factor to consider; for others, it's safety. But if you're thinking about buying an electric or hybrid car, you may also be considering your impact on the environment.\n\"It's been a bit more challenging as a consumer to include environmental impact because financial impact is something that we can feel, we can touch it, it impacts our wallet and our daily life,\" says Melinda Zabritski, Experian's senior director of automotive financial solutions.  \n\"Environmental impact can feel more vague. It's more of that long-term future, more of a future view of life and of society.\"\nWhile it's difficult to quantify how buying an electric or hybrid car will impact the environment, you can compare and analyze vehicle prices to help aid in your decision. According to recent data from Experian Automotive, here are the top 10 electric and hybrid models and how much you can expect to pay each month to buy one.\nSource: Experian State of the Automotive Finance Market Report, Q4 2020\nAs you can see, the majority of the most affordable options available come from Toyota, which has the greatest market share of electric and hybrid vehicles at 38.57%. While Tesla has the second-highest market share at 25.82%, its models are the most expensive on the list.\nOf course, it's important to keep in mind that these are average monthly payments. The average credit score for new purchases of nine out of the top 10 hybrid and electric models is above 750, and if your credit score is in that ballpark, you can assume excellent financing terms. If your credit score is lower than that, however, you may end up with a higher-than-average monthly payment. Also, the lower your down payment, the higher your monthly bill will be. END
 TITLE: What Are the Cheapest Hybrid and Electric Vehicles? CONTENT: Make Sure Your Credit Is Ready for Your Next Vehicle Purchase\n-------------------------------------------------------------\nThe amount of your monthly payment will depend on a few factors, including the cost of your vehicle, the interest rate on your loan and the amount of your down payment. If you want to maximize your savings on your vehicle purchase, taking the time to improve your credit score can help you secure a better rate on your loan.\nStart by checking your credit score and reviewing your credit report to determine where you stand and which areas you need to address. Then take concrete steps to build your credit score, so you can boost your odds of getting favorable financing. END
 TITLE: What Are the Different Types of Federal Student Loans? CONTENT: How Do Federal Student Loans Work?\n----------------------------------\nWhen you take out a federal student loan, you borrow money from the U.S. government—specifically, the Department of Education—for your education expenses and agree to pay it back over time, plus interest. Your loan payments typically kick in six months after you leave school, and the loan may or may not accrue interest while you're attending college depending on which types of loans you have.\nFederal student loans feature a 10-year repayment schedule, though programs like income-driven repayment can stretch out that term for eligible borrowers who need lower monthly payments. Interest rates on new federal student loans are updated every year on July 1, and interest rates are fixed for the life of the loan once disbursed.\nTo be eligible for any type of federal student loan, you'll need to fill out the Free Application for Federal Student Aid (FAFSA) for each school year you attend college. You'll be offered federal student loans as part of your financial aid package provided by your school's financial aid office. To accept the federal student loans offered, you'll fill out a promissory note agreeing to the loan's terms and work with your school's financial aid office to make sure you receive your loan funds. If you're a first-time borrower, you'll be required to complete online credit counseling to show you understand your loan obligation.\nHere are the three main types of federal student loans. END
 TITLE: What Are the Different Types of Federal Student Loans? CONTENT: Federal Direct Subsidized Loans\n-------------------------------\nDirect subsidized loans are loans for undergraduate students with financial need. The interest on these loans is paid for, or \"subsidized,\" by the government while you're in school at least half time; during the six months after you leave school (known as your grace period); and during any deferment periods, such as when you need to postpone payments to head back to school or money struggles get in the way of making your payments.\n*   **Who is eligible**: Undergraduate students who have financial need.\n*   **Rates and fees**: The interest rate on federal direct subsidized loans for the 2020-2021 school year is 2.75%. The loan fee, which is deducted prior to loan disbursement, is 1.057% for student loans disbursed before October 1, 2021. END
 TITLE: What Are the Different Types of Federal Student Loans? CONTENT: Federal Direct Unsubsidized Loans\n---------------------------------\nUnlike with subsidized loans, you don't need to prove financial need for direct unsubsidized loans. They have higher borrowing limits than subsidized loans, but interest accrues the entire time you're in school instead of being paid for by the government. If you don't pay off the accumulated interest by the time you finish school, it's all added to your principal balance—so you start paying interest on your interest. The best way to avoid that is to pay all your accrued interest before your first loan payment is due. If you're eligible, opt for subsidized loans first, then take out additional unsubsidized loans as necessary.\n*   **Who is eligible**: Undergraduate, graduate and professional students; you do not need to prove financial need.\n*   **Rates and fees**: The interest rate on federal direct unsubsidized loans for the 2020-2021 school year is 2.75% for undergraduates and 4.30% for graduate and professional students. The loan fee, which is deducted prior to loan disbursement, is 1.057% for student loans disbursed before October 1, 2021. END
 TITLE: What Are the Different Types of Federal Student Loans? CONTENT: PLUS Loans\n----------\nIf you have a parent footing some of your undergrad bill or you're in graduate or professional school, you can also consider a PLUS loan. This is the only federal student loan that requires a credit check, though there is no minimum credit score required. That said, you could be denied if you have an adverse credit history, which includes foreclosure, bankruptcy or seriously delinquent accounts.\nInterest on all PLUS loans begins accruing once the loan is disbursed. Payments on parent PLUS loans begin immediately unless you request a deferral. If you're a graduate or professional student, however, you won't need to begin making payments until six months after you leave school. Paying the accrued interest before your first payment due date prevents it from being added to your existing loan principal.\n*   **Who is eligible**: Graduate and professional students, as well as parents of undergraduate dependent students who are in school at least half time.\n*   **Rates and fees**: The current interest rate on PLUS loans is 5.30%. The fee is 4.228% for loans disbursed before October 1, 2021.\n*   **Borrowing limits**: PLUS loans can be taken out for the full cost of attendance (determined by the school), less any other federal student aid the student receives. END
 TITLE: What Are the Different Types of Federal Student Loans? CONTENT: When to Consider Private Student Loans\n--------------------------------------\nPrivate student loans don't come with a lot of the perks you'll get with a federal student loan, but they can be helpful for certain borrowers. Compared with federal loans, private student loans typically have higher interest rates, less flexibility and more eligibility restrictions. However, federal aid doesn't always cover your school costs in their entirety, and private student loans can offer advantages.\nFor one, some private loans don't charge fees. Plus, for borrowers looking at PLUS loans, an excellent credit score could land you a better interest rate with a private loan. You can check your credit report and credit scores for free from Experian to see where your credit health stands—you might want to take steps to gain extra points on your credit score to secure better private loan rates. Keep in mind that some private student loans charge variable interest rates—a feature that could cost you more in the long run than the fixed rates offered by federal student loans. END
 TITLE: What Are the Different Types of Federal Student Loans? CONTENT: Beyond Student Loans\n--------------------\nStudent loans may not be the most fun part of college, but they are often necessary for making your education plan work. Don't take these loans lightly or overreach and borrow more than you need. Consider your college's work-study program if it's available to you or finding other ways to make money while you're in college to reduce the amount you need to borrow. And don't underestimate the \"free money\" available for those seeking to learn: There are lots of grants and scholarships you may qualify for that can help ease the financial burden and start you on your way toward earning your degree. END
 TITLE: Is It Easy to Refinance Student Loans? CONTENT: What Is Student Loan Refinancing?\n---------------------------------\nStudent loan refinancing is the process of replacing one or more existing student loans with a new one through a private lender. You can refinance federal loans, private loans or even both at the same time.\nThere are several reasons to consider refinancing your student loans, but there are also potential drawbacks that could make it less than appealing. END
 TITLE: Is It Easy to Refinance Student Loans? CONTENT: Minimum credit score and income requirements for student loan refinancing are relatively reasonable. But the goal of refinancing isn't to simply shift your loans to another lender—it's to get better terms than what you already have.\nAs a result, it doesn't make sense to refinance unless the benefits outweigh the drawbacks. This might be why most people don't refinance until later in life when their credit scores and income may be in stellar shape.\nAccording to Purefy, a student loan refinancing marketplace, the average age of people who refinance is 35. Their average credit score is 774 and their average annual income is $98,156.\nThat's not to say you can't refinance if you're not at this level financially, but a high credit score and salary are crucial if you want to get good enough terms to make refinancing worth your while.\nOne possible solution is to get a cosigner who meets those criteria. But because the loan will also show up on their credit reports, and they'll be responsible for paying the debt if you can't, it can be challenging to persuade someone to take that risk. END
 TITLE: Is It Easy to Refinance Student Loans? CONTENT: Think Twice About Refinancing Federal Student Loans in 2021\n-----------------------------------------------------------\nEven if your credit and income are in good enough shape to qualify for favorable terms on a student loan refinance, it may still not be the best idea if you have federal student loans, at least not in the short term.\nThis is because the student loan provisions of the CARES Act have been extended through September 30, 2021. Until then, eligible federal borrowers don't have to make any payments, and interest won't accrue on their loans. The federal government has also stopped all collection attempts on defaulted loans.\nWhat's more, President Biden has shown support for sweeping student loan forgiveness to the tune of $10,000 for all borrowers whose loans are held by the federal government. While it remains unclear if and when this might happen, it may be worth it to keep your loans where they are to avoid missing out. END
 TITLE: Is It Easy to Refinance Student Loans? CONTENT: Improve Your Chances of Getting the Best Terms\n----------------------------------------------\nIf you've decided that student loan refinancing is right for you, it's important to take steps in advance to maximize your savings. Check your credit score to get an idea of where you stand, and also review your credit report to see whether you need to address potential issues.\nThis may include paying down credit card balances, getting caught up on late payments or simply being patient as your good credit habits increase your score over time.\nYou may also consider getting a cosigner, but make sure they're aware of their responsibilities in the arrangement and how it can impact their credit.\nAlso, if you're thinking about getting a cosigner, consider refinancing with a lender that offers a cosigner release program. This feature allows you to remove a cosigner after you've paid on time for a predetermined period of time and you can meet the lender's eligibility requirements to qualify for the loan on your own.\nBefore you make the decision to move forward, though, carefully consider what you'd be giving up if you have federal loans. While it can be tempting to get better terms right now, you may end up regretting it if you need those federal benefits in the future. END
 TITLE: Can a Student Loan Application Be Denied? CONTENT: Who Qualifies for Federal Student Loans?\n----------------------------------------\nMost federal student loans don't require a credit check. As a result, it's easier for most people to qualify for federal student loans over private loans. It's especially a good idea if you're an undergraduate student with no credit history or a graduate student or parent with a less-than-stellar credit score.\nHowever, there are some things that can prevent you from getting federal loans. END
 TITLE: Can a Student Loan Application Be Denied? CONTENT: Can You Get a Private Student Loan With Bad Credit?\n---------------------------------------------------\nIf you don't qualify for federal financial aid or you've already maxed out your federal loan allotment and still fall short of your educational expenses, you may choose to apply for a private student loan to bridge the gap.\nUnlike most federal loans, private loans typically require a credit check, and it's generally difficult to get approved unless your credit is in good standing. That doesn't mean you can't get approved with a bad credit history or no credit at all, but you'll likely need a creditworthy cosigner to boost your approval odds.\nEven if you do qualify for a private student loan on your own without good credit, you may end up with a high interest rate without a cosigner who has a more established credit history. END
 TITLE: Can a Student Loan Application Be Denied? CONTENT: Alternatives for When You Don't Qualify for Student Loans\n---------------------------------------------------------\nWhile student loans can provide much-needed funds to help pay for your college education, they're only one piece of the payment puzzle.\nIf you're in a situation where you don't qualify for student loans but still need to continue your education, you may be able to work a part- or full-time job during the school year and during the summer.\nYou can also apply for any scholarships and grants through your school and other organizations. Explore resources posted by your university, college and even concentration office. Websites like Scholarships.com and Fastweb can be a useful resource as well to find scholarships available based on things like grades, ability, ethnicity and other criteria.\nFinally, look for ways to reduce your expenses, such as moving back home or picking a more affordable school—for example, you may choose to attend a community college for a year or two, then transfer back to a university once you're able to qualify for student loans again. END
 TITLE: Can a Student Loan Application Be Denied? CONTENT: A Good Credit Score Is Great for More Than Just Student Loans\n-------------------------------------------------------------\nEven if you're applying for federal student loans that don't require a credit check, look for opportunities to build your credit history for the future. For example, you may consider getting a student credit card, using it and paying off the balance on time and in full every month to build a positive history. Student loans are a type of installment loan, and making on-time payments can help you build your credit history just like other forms of credit. Be sure to start making payments as soon as you're required to and reach out to your loan servicer if you expect you'll have difficulty making payments; you may be offered accommodations.\nThroughout this process, it's important to monitor your credit regularly. This practice will help you understand how your actions impact your credit score, and you'll also be able to spot potential errors and even fraud before it damages your credit history.\nAs you take steps to build your credit, you'll put yourself in a better position to qualify for affordable financing, lower insurance rates and more. END
 TITLE: What Happens If I Stop Paying My Payday Loan? CONTENT: How Payday Loans Can Impact Your Credit\n---------------------------------------\nPayday loans are not listed on credit reports. Payday lenders don't usually conduct credit checks on applicants, so applying for one won't show up as a hard inquiry on your credit report, and they won't notify the credit reporting agencies when you get one. Because these loans fall under the radar, they neither help nor hinder your credit history if you pay them off as agreed.\nThat all changes when the account goes delinquent, however. Fall behind on payments and the lender may sell the account to a third-party collection agency. At that stage, the bad debt will almost certainly show up on your credit reports because most collectors furnish information to the credit reporting agencies. If that happens, it will stay in your credit file for seven years and be negatively factored into your credit scores. Payment history is the most important credit scoring consideration, and when an account goes into collections, it's a clear indication that you didn't pay your bill as agreed. As a result, your scores will sink.\nSome payday lenders deal with people who flee from their obligations by filing a lawsuit. If the lender wins the case, a judgment will be filed. Experian does not list these judgments, but other credit reporting agencies do, and they will list it in the public record section of your credit report. There it will stay for seven years from the date it was filed. END
 TITLE: What Happens If I Stop Paying My Payday Loan? CONTENT: Options for Paying Your Payday Loans\n------------------------------------\nBecause payday loans are expensive and the consequences of falling behind are severe, it's best to make these types of debts a priority while the loan is still in good standing and absent from your credit reports. If you're struggling financially (which may be the reason you got the loan in the first place), this could be challenging. Some methods to consider:\n*   **Sell unnecessary property.** Look around your home and yard. Is there anything of value that you don't need? If you can sell it, apply proceeds to the amount you owe.\n*   **Bring in extra income.** Perhaps you can work overtime or get a temporary part-time job. Babysit, walk dogs, join the gig economy by driving for a car share company. Weigh your possibilities.\n*   **Pare down expenses.** Analyze your budget carefully. If there is anything you can eliminate or reduce, do so, and put the savings toward this debt.\n*   **Borrow from a friend or family member.** If there is anybody in your life who has spare cash, you may want to approach that person for a short-term loan. Use it to delete the payday loan, then pay off the person as agreed.\n*   **Ask about an Extended Payment Plan (EPP).** Many states require payday lenders to offer EPPs, which give payday loan borrowers extra time to repay the loan without penalty. Lenders who are members of the Community Financial Services Association of America pledge to offer EPPs to payday loan borrowers having trouble paying their loans, but others don't. Check to see if your lender provides this option. END
 TITLE: What Happens If I Stop Paying My Payday Loan? CONTENT: What to Do if Your Payday Loan Goes Into Collections\n----------------------------------------------------\nIf all that fails and the delinquent payday loan gets routed to collections, you have another potential opportunity. Instead of paying the full debt, you may be able to negotiate the balance down.\nThird-party collectors purchase debts at a discount and then try to collect the total amount due. However, if you can come to an agreement with the collector where they still make a profit and you pay less than you owe, you both win—sort of. The downside to this option is that it will show up on your credit report as \"settled,\" which doesn't look as attractive as \"paid in full,\" so you will have to evaluate the financial benefit against the credit report imperfection. However you deal with a collection account, though, it will remain on your credit report for the same seven years.\nIt's also a wise idea to visit a nonprofit credit counseling agency. These organizations provide free financial counseling to the public. They can assist you with developing a budget so you can handle your liabilities. If you can afford to cover your basic living expenses and have some money left over, you may be able to use their debt management plan. This is a program where you send one payment to the agency, and they disburse the funds to your creditors, which can include a payday loan collector.\nAnd if you're sued by your payday lender for non-payment? Chances are the amount you owe will have grown, and now will have additional court and attorneys fees, so prepare yourself for sticker shock. To deal with this type of debt, you can pay it in full or work out an installment payment plan. In some cases the judgment creditor (the payday lender that sued you) is allowed to extract a portion of your paycheck with a wage garnishment, but you may be able to modify the amount it takes by filing a claim of exemption.\nIf you're worried that you will not be able to quickly repay a payday loan, consider it a sign that it's not a good idea in the first place and seek other options, such as borrowing from family or friends, or getting a personal loan. Payday loans work only in certain circumstances. You have to be sure that you'll delete the borrowed sum with your next paycheck, and that the payment won't leave you so short on upcoming expenses that you'll have to return for another advance. That's a vicious cycle you don't want to enter. END
 TITLE: Is It Easy to Get a Personal Loan? CONTENT: What Credit Score Do I Need to Get a Personal Loan?\n---------------------------------------------------\nWhile it may not be explicitly mentioned on a lender's website, it's typically easier for someone with a good credit score to be approved for a personal loan. Conventional lenders generally run a credit check to determine how likely it is you'll repay your loan. The higher your credit score, the thinking goes, the more likely you'll be to make timely payments. Even better: If you have a good credit score, you're more likely to qualify for low interest personal loans.\nIf you have good to excellent credit—with a FICO® Score☉ of 670 to 850—there are a lot of good personal loan options out there for you. Those with fair credit—with a FICO® Score ranging from 580 to 669—may be able to get a personal loan, but the chances of getting a lower interest rate are less likely compared with someone with a good or excellent credit score.\nIf you have less-than-stellar credit, there are options out there if you're willing to pay a higher interest rate or put your financial assets on the line. With a secured personal loan, for example, you provide collateral the lender can use as payment if you don't pay back your loan as agreed. While secured loans tend to be easier for those with bad credit to get—and may offer lower interest rates than unsecured personal loans for those with bad credit—they also come with the risk of losing your collateral if you fail to repay the loan.\nOnline lenders, such as Upstart, help those with lower credit scores qualify for more competitive rates by looking at alternative data that goes beyond credit scores. This can include job history, education and income.\nMilitary members can consider specialized private lenders in addition to online lenders. These lending institutions work exclusively with military service members to apply for products such as personal loans. Although military lenders do consider applicants with lower credit scores, it may still be difficult for applicants who have a limited credit history. END
 TITLE: Is It Easy to Get a Personal Loan? CONTENT: How Fast Can I Get a Personal Loan?\n-----------------------------------\nHow soon you can get a personal loan depends on the lending institution you choose. Some take hours, while others can take a couple of weeks. In some cases, you may be able to compare rates using an online loan comparison tool—you'll be prequalified with a soft credit check, which won't impact your credit scores.\nTaking out a personal loan from an online lender is typically faster than more conventional options like banks and credit unions. That's because you can get preapproved and submit required information through the lender's website. After filling out an initial application form, you'll be able to see what rates you qualify for as well as how much you can borrow within a few minutes.\nFrom there the lenders will ask you to submit more personal information, such as your mailing address and government-issued ID, and they'll pull your credit report to do a credit check. If you are approved, most online lenders will distribute loan funds as soon as the same business day, depending on the time of approval and how soon you verify your bank account information. It may take a few days for your bank to receive funds.\n> Find the best personal loans in Experian CreditMatch™. END
 TITLE: Is It Easy to Get a Personal Loan? CONTENT: What Else Do I Need to Get a Personal Loan?\n-------------------------------------------\nAlmost all personal loan lenders will ask for certain types of information, including:\n*   Social Security number\n*   Bank information\n*   Mailing address\n*   Proof of income\n*   Government-issued photo ID\n*   Documentation such as recurring monthly expenses and other debt payments\nLending institutions may also look at your debt-to-income ratio, or DTI, to determine whether you'll likely be able to afford your payments. This number looks at the total income you earn compared with the total amount you owe each month. The higher your DTI, the more a lender may doubt your ability to take on additional loans because you're already carrying a lot of debt.\nHere's how to calculate your DTI:\n*   Determine your monthly gross income—the total amount you earn before taxes and withholdings\n*   Add up your total monthly debt payments—including auto loan, mortgage and credit card payments\n*   Divide your total monthly debt by your entire gross income\nFor example, if your gross monthly income is $5,000 and your total debt each month is $1,500, your DTI would be 30%.\nLenders will use all of the above information alongside your credit score to assess whether to approve you for a personal loan.\n> Find the best personal loans in Experian CreditMatch™. END
 TITLE: Is It Easy to Get a Personal Loan? CONTENT: What to Do Before Applying for a Personal Loan\n----------------------------------------------\nUnderstanding what lenders look for when approving a personal loan is paramount if you want to apply for one—and it will help you understand how easy the process may or may not be. Before you apply for any new credit, be sure to check your credit report. This allows you to see where you stand and gives you the opportunity to address the more unflattering aspects of your credit profile before talking to a lender.\nBetter yet, assess whether you can afford to take on another loan by looking at your monthly expenses and other financial considerations. Taking on extra debt is a serious financial decision, so it's best to weigh all your options before applying for a personal loan. END
 TITLE: Which Types of Student Loans Are Best? CONTENT: Federal Student Loans\n---------------------\nYou'll need to submit a Free Application for Federal Student Aid (FAFSA) each year before you can take out federal loans. As long as you meet the basic eligibility criteria, such as being enrolled at least half-time, you may be able to qualify for federal students loans regardless of your income or credit.\nYour school, or prospective school if you aren't enrolled yet, will offer you a financial aid package based on the school's cost of attendance and your financial information from the FAFSA. See \"The 7 Biggest FAFSA Mistakes College Students Make—and How to Avoid Them\" for more information on the FAFSA.\nYour financial aid package could include money for school that you don't need to repay, such as grants or scholarships. Additionally, you might be offered several types of federal and private student loans.\nThere are three types of federal student loans that can help you pay for school:\n*   **Direct subsidized loans** are the best type of federal loan because the government pays the interest that accrues while you're in school, during the six-month grace period after you leave school, and during deferment (periods of loan payment postponement). However, subsidized loans are only available to undergraduate students who have a financial need based on the school's cost of attendance and their expected family contribution.\n*   **Direct unsubsidized loans** are available to undergraduate and graduate or professional students regardless of their financial need. Unlike with subsidized loans, interest accrues during school, grace periods and deferment. You have the option to pay the loan interest during these periods, but if you don't, that accrued interest gets added to your principal balance once you start repaying the loan. That's why if you do take out a direct unsubsidized loan, you should try to pay back any accrued interest before you graduate.\n*   **Direct PLUS loans** are available to graduate or professional students and to parents of undergraduate students. Applicants need to agree to a credit check, which looks for an adverse credit history but doesn't consider credit scores. Applicants with an adverse credit history may need a cosigner before they can take out a PLUS loan. END
 TITLE: Which Types of Student Loans Are Best? CONTENT: Private Student Loans\n---------------------\nPrivate student loans aren't as uniform as federal student loans. For example, your rate, term, fees, loan amount and repayment options depend on the lender and your credit. This is why it's important to compare lenders and offers before taking out a private student loan. Additionally, because the loan offer depends on your credit, many students need a creditworthy cosigner to qualify.\nHere are three examples of private student loan companies:\n* * *\nSoFi offers undergraduate student loans and says it will soon offer graduate and parent loans as well. The minimum loan amount is $5,000, but there's no origination, application, prepayment or late fee when you're taking out or repaying the loan. SoFi also offers fixed- and variable-rate loans, and you can choose to defer your payments until after you leave school or start repaying the loan while you're in school.\n* * *\nCommonBond offers undergraduate, graduate, MBA, dental and medical student loans. The rates and terms depend on the type of loan and whether you take out a fixed-rate or variable-rate student loan. CommonBond also has a \"social promise\" program that pays the tuition for a student in a developing country for each degree it fully funds in the U.S.\n* * *\nCollege Ave offers undergraduate, graduate and parent student loans with either fixed or variable rates. There are also career loan options for students pursuing an eligible certification program. You can choose from several repayment terms and plans, which can help you find a loan with a manageable monthly payment. END
 TITLE: Which Types of Student Loans Are Best? CONTENT: Which Student Loan Is Best?\n---------------------------\nThe best way to pay for school is with grants and scholarships—financial aid that you don't need to repay. But many students will need to borrow money as well.\nFederal student loans are generally the first choice for students because you can get approved regardless of your income or credit, and they offer the same interest rate to every student. Additionally, federal student loans are eligible for repayment plans and assistance programs, such as student loan forgiveness. These benefits can make repaying federal loans easier than repaying private loans.\nHowever, federal student loans have origination fees and (aside from PLUS loans) maximum loan limits based on your year in school rather than the cost of attendance.\nEspecially creditworthy students may qualify for private student loans with a lower interest rate and no origination fee, making the private route a less expensive option. A private loan may also be one of your only options if you reach the federal student loan limit and need additional money to pay for school. END
 TITLE: Which Credit Score Is Used for Car Loans? CONTENT: What Is the Difference in Credit Scores?\n----------------------------------------\nWhile the fundamentals behind consumer credit scoring models are similar, each credit scoring model uses specific criteria to analyze one of your credit reports and generate a credit score.\nSometimes there are small, but potentially important, differences. For example, one credit scoring model might ignore paid collections accounts while another might consider a collections account a negative item even if it's been paid.\nFICO® and VantageScore are the two market leaders in credit scoring, and the base scoring models they create also share some similarities.\nEach model only looks at the information in one of your credit reports from Experian, Equifax or TransUnion to determine your score. A higher score is best because it indicates you are less likely to miss a loan payment.\nThe latest base models also have the same scoring range: 300 to 850. However, FICO® also has industry-specific scores, including scores for auto lenders, that range from 250 to 900. END
 TITLE: Which Credit Score Is Used for Car Loans? CONTENT: What Credit Scores Do Car Lenders Use?\n--------------------------------------\nAlthough you might not know exactly which credit score an auto lender will use, the following types of credit scores are popular options:\n**FICO® Score☉ 8 and 9.** These are the latest generic FICO® scoring models. Although FICO® didn't create these models specifically for auto lenders, they are widely used credit scores, and auto lenders may use a base FICO® Score when reviewing auto loan applications.\n**FICO® Auto Scores.** There are multiple versions of the industry-specific FICO® Auto Score, which is created specifically for auto lenders. The FICO® Auto Scores are based on a generic FICO® Score, and then the score is altered to better predict a person's likelihood of repaying an auto loan on time. Your history with auto loans could be especially important in determining your FICO® Auto Scores.\n**VantageScore® 3.0 and 4.0.** These are the two latest versions of the credit scoring model created by VantageScore, a credit scoring agency founded by the three major credit bureaus (Experian, TransUnion and Equifax). According to a 2017 report from VantageScore Solutions and financial consulting firm Oliver Wyman, auto lenders used a VantageScore credit score for more than 70% of new auto loan and lease decisions from July 2016 to June 2017.\nThere are many minor differences between how FICO® and VantageScore use the information in your credit report and between the different scoring models from the same company. However, all these scores rely on a similar analysis of one of your credit reports. As a result, the actions that can help one score (like making on-time payments) could improve all your scores. END
 TITLE: Which Credit Score Is Used for Car Loans? CONTENT: How Do I Check My Auto Score?\n-----------------------------\nYou can check your FICO® Auto Score by purchasing your credit reports and scores by enrolling in a credit monitoring product. However, there are also many ways to check your other credit scores for free.\nWhile each score you receive will depend on the scoring model and the underlying credit report, knowing these other scores can give you a general idea of where you stand before you apply for an auto loan.\nSome of the places you can look for a free credit score include:\n*   Banks and credit unions\n*   Credit card issuers\n*   Private student loan lenders\n*   Online financial product comparison sites\n*   Credit and financial counseling organizations\n*   Experian gives you free access to a FICO® Score 8 based on your Experian credit report\n*   AnnualCreditReport.com offers one free report from each of the credit bureaus each year END
 TITLE: Which Credit Score Is Used for Car Loans? CONTENT: Improve Your Credit Score Before Buying a Car\n---------------------------------------------\nIf you check your credit scores and think it might be best to work on your credit before taking out an auto loan, here are some suggestions for improving your credit:\n*   **Pay down credit card balances.** Your credit utilization rate is the percentage of your revolving account (credit card) limits that you're currently using, and it's an important credit scoring factor. To figure out your utilization rate, divide your total credit card balances by your total credit limits. The lower your utilization rate, the better. If you currently have a high utilization rate (over 30%), paying down credit card balances could be a quick way to increase your credit scores.\n*   **Consolidate credit card debt.** If you can't afford to pay down your credit card balances, you could apply for a debt consolidation loan and use the money to pay off your credit cards. Installment loans, such as personal loans, won't impact your utilization rate. As a result, transferring the debt from credit cards to a personal loan could improve your scores—as long as you don't then charge up those cards again.\n*   **Keep your credit cards open.** Closing your credit cards, even a card you never use, will lower your available credit and increase your utilization rate. There are exceptions, though. For instance, some people may want to close their credit cards if they have trouble avoiding overspending or the card has an annual fee that doesn't seem worth paying.\n*   **Continue paying bills on time.** Even one late payment could hurt your credit scores, and you want to make sure your recent credit history is as clean as possible before applying for a new loan.\n*   **Hold off on other loan applications.** Applying for a new loan and taking on additional debt could hurt your credit scores. Unless you have a pressing need, such as consolidating debt, it may be best to pause new credit card or loan applications until after you buy a car.\n*   **Review your credit reports for errors.** Double-check your three credit reports for errors that may be hurting your scores and file a dispute if you find one. The credit bureau must investigate your claim and either validate, update or delete the information.\nThese actions could improve all of your credit scores, which can make it easier to get approved for an auto loan with a favorable rate.\nDon't Overthink Your Credit Scores\n----------------------------------\nWhile your credit scores can be important, there are three reasons that it makes more sense to focus on general healthy credit habits rather than a specific score:\n1.  Many consumer credit scoring models use similar criteria to determine your score.\n2.  You don't know which scoring model an auto lender will use.\n3.  If you apply for financing through a dealership, the finance office may submit your application to multiple lenders that could use different scores.\nBuilding a positive credit history can help increase all your credit scores, and you won't need to worry about which score the lender uses. END
 TITLE: Which Credit Score Is Used for Car Loans? CONTENT: Don't Overthink Your Credit Scores\n----------------------------------\nWhile your credit scores can be important, there are three reasons that it makes more sense to focus on general healthy credit habits rather than a specific score:\n1.  Many consumer credit scoring models use similar criteria to determine your score.\n2.  You don't know which scoring model an auto lender will use.\n3.  If you apply for financing through a dealership, the finance office may submit your application to multiple lenders that could use different scores.\nBuilding a positive credit history can help increase all your credit scores, and you won't need to worry about which score the lender uses. END
 TITLE: Emergency Loans: Where to Get the Best Ones CONTENT: Consider All Your Options\n-------------------------\nWhether brought on by a national health crisis or something else entirely, financial concerns may have you wondering how you're going to keep up with all your bills.\nThe good news is there are several solutions that can help. Before taking any steps, consider all your options and resources to determine the best way to cover your expenses. Here are some to consider:\n*   **State or federal government relief**: States and the federal government continue to offer COVID-19 relief measures to help consumers who may have lost their job, had their hours reduced, need to take sick time or are experiencing other financial hardship. The most recent provisions, enacted as part of the American Rescue Plan Act of 2021, offer a third round of stimulus payments, continued unemployment benefits and more. Look to your state governor's office, the IRS, the Consumer Financial Protection Bureau or USA.gov for more information on what assistance may be available to you. Also see How to Get Credit Counseling and Financial Assistance.\n*   **An emergency fund**: If you've saved up an emergency fund, now's the time to use it. Use the money to cover as many necessary expenses as you can rather than paying fees or interest to borrow money.\n*   **Your bank or credit union**: While many banks don't offer personal loans, it doesn't hurt to ask your bank or credit union if there are any borrowing options available. You may be able to get the money quickly deposited into your account rather than waiting for a transfer.\n*   **Assistance from your creditors**: If you don't have enough money to pay all your bills, contact your creditors and ask about hardship options. They may be able to temporarily reduce your interest rate or payment amount, or pause your payments. Lenders may also be able to place your loans in deferment or forbearance. You do not have to make loan payments when a loan is in deferment or forbearance, and the lender will not report late payments to the credit bureaus.\n*   **Friends and family**: Mixing personal relationships and finances doesn't always turn out great, but it's something to consider. When borrowing money from family, be sure to set clear expectations, and even write up a contract with the terms you both agree on.\n*   **Credit cards**: While credit cards tend to have higher interest rates, you may have a card (or be able to get a card) with a promotional 0% annual percentage rate offer. You can avoid interest by using the card and paying off the balance before the promotional rate ends, which could make this a better option than taking out a loan. If you're considering a credit card, find out which offers you may qualify for using Experian's CreditMatch™ tool.\n*   **Credit card cash advances**: Using your credit card to get a cash advance may be an option if you're making a purchase where credit cards aren't accepted. However, you may have to pay a fee and the cash advance will likely carry a high interest rate, even if your card offers a promotional rate on purchases. Because of the fees and rates, a cash advance may be a more expensive option than other types of loans.\n*   **Emergency loans**: While \"emergency loan\" is a description of how you plan to use the money rather than a specific type of loan, you'll often see unsecured personal loans described as such. The number of personal loans on the market has grown substantially in recent years, so if you're considering one, learn more about what is involved and which loans might work for your situation (more on this below). END
 TITLE: Emergency Loans: Where to Get the Best Ones CONTENT: 4 Top Online Lenders That Offer Quick Emergency Loans\n-----------------------------------------------------\n### LendingPoint\n[](;site=exp&placement=ae-single-embed&sessionid=96343514-D133-0BFC-81DB-6BD8875C54CC&pageid=blogs:ask-experian:emergency-loans-where-to-get-the-best-ones&previouspageid=&ecsstaticid=E042466B-BD63-B9E4-1FF5-947C1DD81E48)[Apply](;site=exp&placement=ae-single-embed&sessionid=96343514-D133-0BFC-81DB-6BD8875C54CC&pageid=blogs:ask-experian:emergency-loans-where-to-get-the-best-ones&previouspageid=&ecsstaticid=E042466B-BD63-B9E4-1FF5-947C1DD81E48)\non LendingPoint's website\n**Recommended FICO® Score\\***\nFair - Good\nAmount\nAvailable loan amounts: $2,000 to $25,000\nEst. monthly payment: $95 to $1,437\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   Personal loans from $2,000 to $25,000\n*   Rates from 15.49% to 35.99% APR with no prepayment penalties\n*   Check your rate for free without impacting your credit score\n*   Qualified customers receive offers in three simple steps, and funds in as little as 24 hours if approved\n*   Simple and Secure - quick online application\n*   LendingPoint's customer success representatives are available online or by phone 24\/7, just call 888-969-0959\n*   Terms from 24 - 60 months\nDisclosure\nLendingPoint is an online personal loan lender that focuses on applicants with less-than-stellar credit. You may be able to borrow $2,000 to $25,000, get prequalified without impacting your credit and get the money within one business day. You may pay an origination fee ranging from 0% to 6% depending on your creditworthiness.\n### SoFi\n[](;site=exp&placement=ae-single-embed&sessionid=96343514-D133-0BFC-81DB-6BD8875C54CC&pageid=blogs:ask-experian:emergency-loans-where-to-get-the-best-ones&previouspageid=&ecsstaticid=E042466B-BD63-B9E4-1FF5-947C1DD81E48)[Apply](;site=exp&placement=ae-single-embed&sessionid=96343514-D133-0BFC-81DB-6BD8875C54CC&pageid=blogs:ask-experian:emergency-loans-where-to-get-the-best-ones&previouspageid=&ecsstaticid=E042466B-BD63-B9E4-1FF5-947C1DD81E48)\non SoFi's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $5,000 to $100,000\nEst. monthly payment: $217 to $4,944\nGrace period: 10 days\nApplication fee: $0\n##### Loan Details\n*   Personal Loans with low fixed rates\n*   Borrow up to $100,000\n*   No Origination Fees, No Prepayment Penalties, and No Late or Overdraft Fees\n*   Simple online application with live support 7 days a week\n*   Apply Now\nDisclosure\nIf you have good to excellent credit, SoFi could be one of your top choices. Loan amounts range from $5,000 to $100,000, there's no prepayment penalty and, unlike many lenders, SoFi doesn't charge origination fees. It may take a few days to receive the funds, but as with other lenders, you can check your rate without impacting your credit.\n### Upgrade\n[](;site=exp&placement=ae-single-embed&sessionid=96343514-D133-0BFC-81DB-6BD8875C54CC&pageid=blogs:ask-experian:emergency-loans-where-to-get-the-best-ones&previouspageid=&ecsstaticid=E042466B-BD63-B9E4-1FF5-947C1DD81E48)[Apply](;site=exp&placement=ae-single-embed&sessionid=96343514-D133-0BFC-81DB-6BD8875C54CC&pageid=blogs:ask-experian:emergency-loans-where-to-get-the-best-ones&previouspageid=&ecsstaticid=E042466B-BD63-B9E4-1FF5-947C1DD81E48)\non Upgrade's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,095\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Affordable loans from $1,000 - $50,000 with low fixed rates that will never change, affordable monthly payments, and no prepayment penalties\n*   Quick online application -- get pre-approved in just minutes\n*   Checking your rate won't impact your credit score\n*   Review multiple loan options so you can pick the amount and term that fits your budget and timeline\n*   With automatic payments and a customizable due date, managing your account is easy and you'll be able to circle the date on your calendar when you'll be debt free\nDisclosure\nUsing Upgrade, you can get prequalified, choose your loan option (if you're approved) and receive funds within a day of completing the verification process. Overall, the process should take about four business days. Loan amounts vary from $1,000 to $50,000, and there's a 2.9% to 8% origination fee.\n### Upstart\n[](;site=exp&placement=ae-single-embed&sessionid=96343514-D133-0BFC-81DB-6BD8875C54CC&pageid=blogs:ask-experian:emergency-loans-where-to-get-the-best-ones&previouspageid=&ecsstaticid=E042466B-BD63-B9E4-1FF5-947C1DD81E48)[Apply](;site=exp&placement=ae-single-embed&sessionid=96343514-D133-0BFC-81DB-6BD8875C54CC&pageid=blogs:ask-experian:emergency-loans-where-to-get-the-best-ones&previouspageid=&ecsstaticid=E042466B-BD63-B9E4-1FF5-947C1DD81E48)\non Upstart's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,262\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Loan amounts from $1,000 - $50,000\n*   APRs from 6.46% - 35.99% with loan terms of 3 or 5 years\n*   Won't affect your credit score\n*   You can have funds in as fast as 1 day\n*   You are more than your credit score. On Upstart your education and experience help you get the rate you deserve.\nDisclosure\nUpstart offers loans directly but can also share your information with partnered lenders so you can compare loan offers and terms to find the best fit. You'll need a credit score of at least 580 and can find out if you prequalify without hurting your credit. Loan amounts range from $1,000 to $50,000, the origination fee is 0% to 8%, and you could receive the money in one business day.\nWhat You Need to Know if You're Considering an Emergency Loan\n-------------------------------------------------------------\nAn unsecured personal loan does not require you to provide collateral to receive the funds. Lenders typically let you use personal loan funds for almost anything, which means they can help during a variety of emergency situations.\nThere are a few additional fine points to know as you look for a personal loan:\n*   **Your state of residence can be important.** Some lenders don't offer loans in certain states. The minimum and maximum loan amounts and fees can also depend on what state you reside in.\n*   **Interest rates can vary widely.** Lenders often have large interest rate ranges, and you may wind up getting offered a rate that's much higher than what you'd pay on a credit card.\n*   **There's no guaranteed loan amount.** While lenders may offer \"up to\" a certain amount, that doesn't mean you'll get approved for the entire amount you request.\n*   **Look closely at the fees.** Many lenders advertise that they don't charge application or prepayment fees. But often you'll still need to pay an origination fee.\n*   **Funding speed can vary.** You may be able to get funds in your account within one or two business days. However, the timing can depend on when you submit your application, how long it takes to verify your information and the bank where you want the money deposited.\n*   **Find a reputable lender.** All loans are a contractual commitment, so be mindful of the fine print, payment terms and interest rates. Make sure to research and pay attention to consumer reviews of loan providers. This could help you avoid predatory lenders or unfavorable terms.\nIf you've considered your situation and believe an emergency loan is the right solution for you, the four online lenders noted above could offer quick unsecured personal loans with potentially low interest rates.  \nBottom Line\n-----------\nWading through all the options during a financially uncertain time can be difficult, but you do have options when you need cash in a hurry. If you think an emergency loan might be your best option, you can use a tool like Experian CreditMatch™ to quickly compare lenders and find out if you prequalify. END
 TITLE: Emergency Loans: Where to Get the Best Ones CONTENT: ### LendingPoint\n[](;site=exp&placement=ae-single-embed&sessionid=96343514-D133-0BFC-81DB-6BD8875C54CC&pageid=blogs:ask-experian:emergency-loans-where-to-get-the-best-ones&previouspageid=&ecsstaticid=E042466B-BD63-B9E4-1FF5-947C1DD81E48)[Apply](;site=exp&placement=ae-single-embed&sessionid=96343514-D133-0BFC-81DB-6BD8875C54CC&pageid=blogs:ask-experian:emergency-loans-where-to-get-the-best-ones&previouspageid=&ecsstaticid=E042466B-BD63-B9E4-1FF5-947C1DD81E48)\non LendingPoint's website\n**Recommended FICO® Score\\***\nFair - Good\nAmount\nAvailable loan amounts: $2,000 to $25,000\nEst. monthly payment: $95 to $1,437\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   Personal loans from $2,000 to $25,000\n*   Rates from 15.49% to 35.99% APR with no prepayment penalties\n*   Check your rate for free without impacting your credit score\n*   Qualified customers receive offers in three simple steps, and funds in as little as 24 hours if approved\n*   Simple and Secure - quick online application\n*   LendingPoint's customer success representatives are available online or by phone 24\/7, just call 888-969-0959\n*   Terms from 24 - 60 months\nDisclosure\nLendingPoint is an online personal loan lender that focuses on applicants with less-than-stellar credit. You may be able to borrow $2,000 to $25,000, get prequalified without impacting your credit and get the money within one business day. You may pay an origination fee ranging from 0% to 6% depending on your creditworthiness. END
 TITLE: Emergency Loans: Where to Get the Best Ones CONTENT: ### SoFi\n[](;site=exp&placement=ae-single-embed&sessionid=96343514-D133-0BFC-81DB-6BD8875C54CC&pageid=blogs:ask-experian:emergency-loans-where-to-get-the-best-ones&previouspageid=&ecsstaticid=E042466B-BD63-B9E4-1FF5-947C1DD81E48)[Apply](;site=exp&placement=ae-single-embed&sessionid=96343514-D133-0BFC-81DB-6BD8875C54CC&pageid=blogs:ask-experian:emergency-loans-where-to-get-the-best-ones&previouspageid=&ecsstaticid=E042466B-BD63-B9E4-1FF5-947C1DD81E48)\non SoFi's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $5,000 to $100,000\nEst. monthly payment: $217 to $4,944\nGrace period: 10 days\nApplication fee: $0\n##### Loan Details\n*   Personal Loans with low fixed rates\n*   Borrow up to $100,000\n*   No Origination Fees, No Prepayment Penalties, and No Late or Overdraft Fees\n*   Simple online application with live support 7 days a week\n*   Apply Now\nDisclosure\nIf you have good to excellent credit, SoFi could be one of your top choices. Loan amounts range from $5,000 to $100,000, there's no prepayment penalty and, unlike many lenders, SoFi doesn't charge origination fees. It may take a few days to receive the funds, but as with other lenders, you can check your rate without impacting your credit. END
 TITLE: Emergency Loans: Where to Get the Best Ones CONTENT: ### Upgrade\n[](;site=exp&placement=ae-single-embed&sessionid=96343514-D133-0BFC-81DB-6BD8875C54CC&pageid=blogs:ask-experian:emergency-loans-where-to-get-the-best-ones&previouspageid=&ecsstaticid=E042466B-BD63-B9E4-1FF5-947C1DD81E48)[Apply](;site=exp&placement=ae-single-embed&sessionid=96343514-D133-0BFC-81DB-6BD8875C54CC&pageid=blogs:ask-experian:emergency-loans-where-to-get-the-best-ones&previouspageid=&ecsstaticid=E042466B-BD63-B9E4-1FF5-947C1DD81E48)\non Upgrade's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,095\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Affordable loans from $1,000 - $50,000 with low fixed rates that will never change, affordable monthly payments, and no prepayment penalties\n*   Quick online application -- get pre-approved in just minutes\n*   Checking your rate won't impact your credit score\n*   Review multiple loan options so you can pick the amount and term that fits your budget and timeline\n*   With automatic payments and a customizable due date, managing your account is easy and you'll be able to circle the date on your calendar when you'll be debt free\nDisclosure\nUsing Upgrade, you can get prequalified, choose your loan option (if you're approved) and receive funds within a day of completing the verification process. Overall, the process should take about four business days. Loan amounts vary from $1,000 to $50,000, and there's a 2.9% to 8% origination fee. END
 TITLE: Emergency Loans: Where to Get the Best Ones CONTENT: ### Upstart\n[](;site=exp&placement=ae-single-embed&sessionid=96343514-D133-0BFC-81DB-6BD8875C54CC&pageid=blogs:ask-experian:emergency-loans-where-to-get-the-best-ones&previouspageid=&ecsstaticid=E042466B-BD63-B9E4-1FF5-947C1DD81E48)[Apply](;site=exp&placement=ae-single-embed&sessionid=96343514-D133-0BFC-81DB-6BD8875C54CC&pageid=blogs:ask-experian:emergency-loans-where-to-get-the-best-ones&previouspageid=&ecsstaticid=E042466B-BD63-B9E4-1FF5-947C1DD81E48)\non Upstart's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,262\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Loan amounts from $1,000 - $50,000\n*   APRs from 6.46% - 35.99% with loan terms of 3 or 5 years\n*   Won't affect your credit score\n*   You can have funds in as fast as 1 day\n*   You are more than your credit score. On Upstart your education and experience help you get the rate you deserve.\nDisclosure\nUpstart offers loans directly but can also share your information with partnered lenders so you can compare loan offers and terms to find the best fit. You'll need a credit score of at least 580 and can find out if you prequalify without hurting your credit. Loan amounts range from $1,000 to $50,000, the origination fee is 0% to 8%, and you could receive the money in one business day. END
 TITLE: Emergency Loans: Where to Get the Best Ones CONTENT: What You Need to Know if You're Considering an Emergency Loan\n-------------------------------------------------------------\nAn unsecured personal loan does not require you to provide collateral to receive the funds. Lenders typically let you use personal loan funds for almost anything, which means they can help during a variety of emergency situations.\nThere are a few additional fine points to know as you look for a personal loan:\n*   **Your state of residence can be important.** Some lenders don't offer loans in certain states. The minimum and maximum loan amounts and fees can also depend on what state you reside in.\n*   **Interest rates can vary widely.** Lenders often have large interest rate ranges, and you may wind up getting offered a rate that's much higher than what you'd pay on a credit card.\n*   **There's no guaranteed loan amount.** While lenders may offer \"up to\" a certain amount, that doesn't mean you'll get approved for the entire amount you request.\n*   **Look closely at the fees.** Many lenders advertise that they don't charge application or prepayment fees. But often you'll still need to pay an origination fee.\n*   **Funding speed can vary.** You may be able to get funds in your account within one or two business days. However, the timing can depend on when you submit your application, how long it takes to verify your information and the bank where you want the money deposited.\n*   **Find a reputable lender.** All loans are a contractual commitment, so be mindful of the fine print, payment terms and interest rates. Make sure to research and pay attention to consumer reviews of loan providers. This could help you avoid predatory lenders or unfavorable terms.\nIf you've considered your situation and believe an emergency loan is the right solution for you, the four online lenders noted above could offer quick unsecured personal loans with potentially low interest rates. END
 TITLE: What’s the Difference Between Subsidized and Unsubsidized Student Loans? CONTENT: The key differences between subsidized and unsubsidized student loans include:\n### Interest Rates and Payments\nInterest rates on both types of student loans are set by the U.S. government and are fixed for the life of the loan. With subsidized student loans, the government pays the interest accrued on your loan as long as you are in school at least half-time (based on your school's definition). That means your loan balance stays the same while you're in school: If you borrow $10,000 at the beginning of the year, at the end of the year you still owe $10,000.\nWith unsubsidized loans, you are responsible for paying the interest on the loan right away—even while you're enrolled in school, even during any loan deferment period, and even during the six-month grace period after graduation before you have to start repaying the balance of the loan.\nWhat if you can't pay the accrued interest at that time? It may be hard to do on a student budget. If you don't pay the accrued interest, it gets added to the principal (a process called capitalization). Unfortunately, that means by the time your loan grace period is over after graduation, your loan balance could be significantly larger than the amount you originally borrowed. END
 TITLE: What’s the Difference Between Subsidized and Unsubsidized Student Loans? CONTENT: Amount You Can Borrow\n---------------------\nThe U.S. Department of Education limits the dollar amount of subsidized and unsubsidized loans you can get each academic year (annual loan limits). They also limit the total amount you can borrow over your graduate or undergraduate career (aggregate loan limits). The limits vary based on your class status—that is, whether you're a freshman, junior and so on—whether your parents claim you as a dependent on their tax return, and whether or not your parents are eligible for a direct PLUS loan.\nCurrently, dependent students whose parents aren't eligible for direct PLUS loans are limited to borrowing an aggregate of $31,000 in subsidized and unsubsidized student loans over four years of college; only $23,000 of that amount can be in subsidized loans. Check out the U.S. Department of Education website to get the complete details on annual and aggregate loan limits and see what you may be qualified to borrow.\n### Qualifications for Borrowers\nApplying for both subsidized and unsubsidized loans is easy—all you have to do is fill out the Free Application for Federal Student Aid (FAFSA). Based on your application, your school will tell you what type and amount of loans you qualify for. Often, it's a combination of different types of loans.\n*   **Financial need qualifications**: Subsidized student loans are offered based on financial need. Unsubsidized loans don't require you to prove financial need. Often, unsubsidized loans are offered to supplement subsidized loans. If your family income is too high to qualify you for need-based loans or financial assistance, an unsubsidized loan can be a good option.\n*   **Degree program qualifications**: Subsidized loans are available to undergraduates only. Unsubsidized loans are available for undergraduate, graduate and professional school students.\n### Repayment\nOnce you start making your student loan repayments, you might be lucky enough to have some extra money you can put toward your loan payments. If so, which loans should you prioritize? In general, it's best to repay the loan with the highest interest rate first. However, if you have an unsubsidized student loan and you weren't able to pay the interest during school, it's a good idea to put any extra money toward that loan first. Why? Remember, any unpaid interest that accrued during your school years gets added to your loan principal, so you're now paying interest on the original principal plus all the accrued interest. Ouch! END
 TITLE: What’s the Difference Between Subsidized and Unsubsidized Student Loans? CONTENT: Unsubsidized and Subsidized: How Are They the Same?\n---------------------------------------------------\nThere are also a couple of similarities between subsidized and unsubsidized student loans.\n### Eligibility\nYou're eligible to take out both types of loans for up to 150% of the time you're enrolled in college. For the typical four-year undergraduate degree, that means you can take out six years' worth of loans (4 x 150%). If you're getting a two-year master's degree, you could take out three years' worth of loans.\n### Interest Rates\nInterest rates are the same for both subsidized and unsubsidized undergraduate loans. For the 2018-2019 school year, the interest rate on student loans is 5.05% for undergraduates. (For graduate and professional students, the rate for unsubsidized student loans is 6.6%.) END
 TITLE: What’s the Difference Between Subsidized and Unsubsidized Student Loans? CONTENT: What Credit Score Do I Need for an Unsubsidized or Subsidized Loan?\n-------------------------------------------------------------------\nHere's the good news: There's no credit check or credit score requirement for either type of loan. All you have to do is fill out the FAFSA form each year, and your school will notify you what types and amount of student loans you're eligible for. END
 TITLE: What’s the Difference Between Subsidized and Unsubsidized Student Loans? CONTENT: The Takeaway\n------------\nMany students need to borrow money to cover the cost of college. If you qualify for federally subsidized student loans, they can offer significant benefits compared with unsubsidized loans. However, both types of loans can be useful tools in paying for your college education. The key is to understand the commitment you're making when you take out a student loan and take steps to manage this and other debt wisely so you don't get in over your head. END
 TITLE: Why Did My Credit Score Drop When I Paid Off a Loan? CONTENT: Paying Off a Loan May Lead to a Temporary Score Drop\n----------------------------------------------------\nFor some people, paying off a loan might increase their scores or have no effect at all. It all depends on your overall credit profile and the type of credit score you're checking.\nHere are a few reasons why your score might drop when you pay off a loan:\n*   **It was your only installment account**: Having a mix of revolving accounts (like credit cards) and installment accounts (such as loans) is generally good for your credit scores. If the loan you paid off was your only installment account, you might lose some points because you no longer have a mix of different types of open accounts.\n*   **It was your only account with a low balance**: The balances on your open accounts can also impact your credit scores. If the loan you paid off was the only account with a low balance, and now all your active accounts have a high balance compared with the account's credit limit or original loan amount, that might also lead to a score drop.\n*   **Your scores dropped for a different reason**: Many factors impact your credit scores, and the drop might be a complete coincidence. For example, if you recently applied for a loan or credit card (even if you didn't get approved) or your credit card balance increased (even if you paid your bill in full), that could lead to a temporary score drop.\nIn general, paying off a loan won't have much of an impact one way or the other, and if your score does drop, the change will likely be temporary. But the presence of the account on your credit reports can continue to impact your scores for years to come. END
 TITLE: Why Did My Credit Score Drop When I Paid Off a Loan? CONTENT: Paid-Off Loans Can Still Affect Your Credit\n-------------------------------------------\nOne common credit scoring myth is that once an account is closed, it won't impact your credit scores. That's not necessarily the case.\nIf you paid off your loan and the account was in good standing, meaning you always made your payments on time, then the positive account history could continue to positively impact your scores.\nOn the other hand, if you missed payments before you paid off the loan, those previously missed payments can continue to hurt your credit scores.\nRegardless of the account's payment history, it will continue to contribute to your mix of accounts, overall number of accounts (the \"thickness\" of your credit profile) and the age of your credit history. These can all be positive factors. END
 TITLE: Why Did My Credit Score Drop When I Paid Off a Loan? CONTENT: Positive Accounts Stay on Credit Reports Longer Than Negative Accounts\n----------------------------------------------------------------------\nYour closed account won't remain on your credit reports forever. If you repaid the loan in full and never missed a payment, the credit bureaus will keep the account on your credit report for up to 10 years after the account is closed.\nHowever, most negative marks must be removed from your credit reports after seven years (though some bankruptcies can remain for up to 10 years). Negative marks include late payments, a defaulted account or an account in collections.\nThe seven-year clock starts when you first fall behind on your bill, or the \"date of first delinquency.\" If you don't pay your past due amount, a new negative mark gets added to your account each month to indicate how far behind you've fallen. If you never bring the account current, the creditor may eventually charge off your account and send it to collections.\nWhen the late payments lead to your account being closed, or if you pay off a loan that was already delinquent and closed, then the entire account will be deleted seven years after the date of first delinquency.\nIf you were late with a few payments, caught up and then paid off the loan at a later point, the account may remain on your credit reports for 10 years after it's closed. However, the late payments still get removed after seven years. END
 TITLE: Why Did My Credit Score Drop When I Paid Off a Loan? CONTENT: Learn More About Credit Scoring Factors\n---------------------------------------\nBecause paying off a loan often only has a minor impact on your credit scores, it generally makes more sense to focus on the major scoring factors:\n*   **Payment history** is the biggest factor making up your credit scores, which is why it's especially important to make on-time payments if you're paying down other loans or using credit cards. Even on-time payments on non-credit accounts, such as your utilities and phone, can help improve your scores if you sign up for Experian Boost™† .\n*   **The balance on your revolving credit accounts**, such as credit cards, is also an important factor. Keeping balances low relative to your credit limits (also known as a low credit utilization rate) can significantly help your scores.\nOther factors can also be important, such as the length of your credit history, your experience with different types of accounts and your recent credit usage.\nUnderstanding how credit scores are created and which actions can improve or hurt your scores can help you strategically manage your accounts moving forward. For more information, see \"What Affects Your Credit Scores?\" END
 TITLE: Why Did My Credit Score Drop When I Paid Off a Loan? CONTENT: Scores Aside, Paying Off Debt Is Good\n-------------------------------------\nWhether your credit scores rise, drop or stay the same when you pay off a loan, you should still celebrate the fact that you have one fewer debt to repay. You can now use the extra money to pay down other debts or save it for one of your financial goals. Or, if you've got your financial bases covered, you'll now have extra money in your monthly budget to spend as you please. END
 TITLE: How Subprime Loans Can Affect Your Credit CONTENT: What Is a Subprime Loan?\n------------------------\nA subprime loan is a loan designed for borrowers who have subprime credit because they're either relatively new to credit or rebuilding their credit history after making some mistakes in the past.\nBecause lenders that offer subprime loans take on more risk than lenders that offer only prime and super-prime loans, subprime loans tend to come with higher interest rates. Some also charge additional fees that increase the total cost of the loan.\nDepending on the type of loan, that cost difference could be in the hundreds of dollars or—with a mortgage, for instance—tens of thousands. END
 TITLE: How Subprime Loans Can Affect Your Credit CONTENT: Subprime loans affect your credit scores the same way any other loan would. Your payment history is the most important factor in your scores, so it's essential that you make your payments on time every month.\nOne way to ensure this happens is to set up automatic payments from your checking account and always make sure there's enough in the account to cover what you owe. If you do happen to miss a payment, remember that it won't be reported as late on your credit report until 30 days after the due date.\nIf it's just a few days late, you may be charged a fee, but it won't show up on your credit history if you pay it promptly. END
 TITLE: How Subprime Loans Can Affect Your Credit CONTENT: How to Get a Subprime Loan\n--------------------------\nMany lenders that offer prime loans also offer subprime loans. Start by checking with your local bank, but also consider others that may be able to offer more favorable terms for your situation.\nCredit unions, for instance, have a federal cap of 18% on subprime loan interest rates, which is lower than what you might get from other lenders. However, you may need to be a member before you can apply.\nAnother option to consider is an online lender. Many online lenders allow you to get prequalified before you apply so you can get an idea of what rate and other terms you might get. This allows for easier comparison and prevents you from having to rack up credit inquiries as you shop around.\nAs with any loan, it's best to check with at least a few lenders to improve your chances of getting the best terms based on your qualifications. END
 TITLE: How Subprime Loans Can Affect Your Credit CONTENT: Improve Your Credit Before Applying\n-----------------------------------\nIt's possible to get approved for a loan with subprime credit. But if your financing needs aren't urgent, it may be better to wait and work on your credit so you can qualify for a prime loan with a better interest rate.\nStart by checking your credit score and getting a copy of your credit report from AnnualCreditReport.com to see if there are any specific areas you need to work on.\nFor example, if you're behind on payments with a loan or credit card, get caught up as quickly as possible and make on-time payments going forward. If you have a high balance on a credit card, work on paying it down to lower your credit utilization rate, which is the amount of revolving credit you're using as compared with your total credit limits.\nAlso, check your credit report for errors. If you find anything incorrect or fraudulent, you can dispute it with the credit reporting agencies to have it corrected or removed.\nImproving your credit scores can take time, but it can save you a lot of money over the long run. END
 TITLE: How Subprime Loans Can Affect Your Credit CONTENT: Avoid Making a Rush Decision\n----------------------------\nIf you're looking for a subprime loan, it's important to take your time to research various options. If you take the first offer you get, you may end up paying more without ever knowing it.\nIt's especially important to avoid short-term loans like payday loans and auto title loans. While easy to get, these loans often charge triple-digit interest rates and give borrowers little time for repayment, often requiring them to take out more debt to pay off the first one.\nUltimately, getting your credit scores into the prime range can save you the most money. But if you need cash now, compare at least three to five lenders before you apply. END
 TITLE: Does Life Insurance Require a Credit Check? CONTENT: Difference Between Credit-Based Insurance Scores and Credit Scores Used by Lenders\n----------------------------------------------------------------------------------\nWhen you apply for a new loan or credit card, a creditor may pull your credit and review a credit score based on your credit report. The scores that FICO® and VantageScore® develop generally range from 300 to 850 and are intended to predict the likelihood that someone will fall 90 days past due on a bill within the next 24 months.\nInsurance companies—including life, home and auto insurers—may also pull your credit and get a credit score when you apply for insurance. However, these credit-based insurance scores have a different purpose and score range than other types of credit scores. They also consider the information from your credit report differently, and some are even based on a mix of information from a credit report and other data sources.\nAdditionally, some states restrict or limit how insurance companies can use consumers' credit information. However, these restrictions generally only apply to home and auto insurance. END
 TITLE: Does Life Insurance Require a Credit Check? CONTENT: Do Life Insurers Check Your Credit?\n-----------------------------------\nTraditionally, not many life insurance companies used a credit check when evaluating potential new customers. However, the traditional underwriting process—which can involve medical exams and waiting for test results—may take a long time. While no-exam policies are available, they may only be offered to healthy and low-risk people, or could be more expensive than a policy that requires an exam.\nThe use of a credit check, along with other data that can be quickly gathered and reviewed, is one way insurance companies are trying to automate and accelerate underwriting. Depending on what the automated process determines, applicants may be able to get approved with limited (or no) medical exams. As a result, it can be easier for more people to quickly qualify for life insurance with lower premiums.\nLIMRA, a global trade association for life insurance companies, and Munich Re, a German insurance company, conducted surveys of insurance companies' accelerated underwriting programs. They found the use of credit records grew from 18% of companies in 2017 to 49% in 2019. A separate Munich Re Life US survey of 28 insurance companies in late 2018 found that over 90% of the companies are either using or considering using credit-based scoring during underwriting.\nWhen a life insurance company checks your credit, it may be looking for particular information from within your credit history. For example, a bankruptcy filing in your credit report could impact your ability to be approved for a policy and its cost.\nOr, the company may receive a credit-based insurance score that attempts to predict the likelihood that someone will miss a premium payment. It can use the score to help determine if it should require a medical exam, issue a policy and how much to charge in premiums. END
 TITLE: Does Life Insurance Require a Credit Check? CONTENT: What Else Influences Your Life Insurance Costs?\n-----------------------------------------------\nWhile a credit check could impact your life insurance underwriting process and premiums, other factors will likely have a larger influence on your costs. Because life insurance pays out when someone dies, these factors tend to be centered around a person's health and the risks they take. They can include:\n*   **Age and sex**: Someone who is younger may be less likely to die soon, and women tend to live longer than men.\n*   **Health history**: Your physical and mental health history, along with your current or past prescription drug use, can impact your cost.\n*   **Family medical history**: Similarly, if your family has a history of certain illnesses or hereditary diseases, that may increase your cost.\n*   **Hobbies and work**: Regular tobacco use or risky hobbies, such as rock climbing, can lead to higher premiums. Your job can also impact your cost, because working in an office is less dangerous than being a construction worker.\n*   **Driving and criminal records**: A history of car accidents or a criminal record may indicate risky behavior that could make life insurance more expensive.\n*   **The policy**: A longer-term policy with a higher benefit amount will be more expensive than a shorter-term policy with a low benefit.\nThis information is not included in a credit report or credit score. Life insurance companies collect it from a variety of sources, including what you share on your application, your medical records and (potentially) a medical exam. Companies also purchase information from consumer reporting companies.\nFor example, MIB Inc. creates MIB consumer reports with consumers' medical conditions and hazardous hobbies. And Milliman IntelliScript offers consumer reports with histories of consumers' prescription drug purchases.\nSimilar to consumer credit bureaus, federal law may allow you to request a free copy of your consumer report (if one is available) from these companies at least once every 12 months. The Consumer Financial Protection Bureau (CFPB) has a list of consumer reporting companies, along with their contact information. END
 TITLE: Does Life Insurance Require a Credit Check? CONTENT: Will an Insurance Credit Check Impact Your Credit Score?\n--------------------------------------------------------\nUnlike a hard inquiry credit check that can occur when you apply for a credit card or loan, an insurance credit check will never hurt your credit scores.\nIf an insurance company checks your credit report or purchases a credit-based insurance score as part of its application review process, it will be recorded as a soft inquiry. Soft inquiries aren't used to calculate FICO® and VantageScore credit scores. END
 TITLE: Does Life Insurance Require a Credit Check? CONTENT: Good Credit Can Make Getting Life Insurance Easier\n--------------------------------------------------\nWhile your credit is only one small piece of the puzzle, having good credit could make it easier to get approved for life insurance without a medical exam, and may lead to paying less for your policy. If you want to check your credit, you can get a free credit report from Experian. You'll also get free credit monitoring with notifications of potentially suspicious changes, and can quickly dispute inaccuracies in your credit report using the online Dispute Center. END
 TITLE: What Type of Life Insurance Should I Get? CONTENT: How Do Life Insurance Policies Work?\n------------------------------------\nAs with home or auto insurance, you purchase a certain amount of life insurance coverage and pay annual premiums for it. If you die while insured, your beneficiaries will receive a payout of the amount of coverage you purchased; this is called the _death benefit_.\nDo you need life insurance? If you provide financially for your dependents, the answer is yes—especially if you're the sole wage earner. Stay-at-home parents should also consider life insurance to cover the cost of replacing services they provide for free, such as child care and housekeeping.\nOn the other hand, if you're single, don't have any dependents and have enough money to pay your debts when you die, you really don't need life insurance. Of course, you can still purchase life insurance if you want and declare a favorite relative, charity or whomever you choose as the beneficiary. END
 TITLE: What Type of Life Insurance Should I Get? CONTENT: What Is Term Life Insurance?\n----------------------------\nLife insurance falls into two basic categories: _term life_ and _permanent life_. Term life insurance remains in force for a specific term, usually ranging from one to 30 years. If you die within that term, the policy pays a death benefit. In most cases, you'll pay the same premium throughout the term.\nTerm insurance is often purchased to protect a family through a specific period. For instance, the parents of young children might buy a 20-year term life insurance policy to provide for the cost of raising the children if one parent dies. But what if your term is up and you still want life insurance? You have a couple of options.\nYou can buy a new policy; however, this generally requires undergoing a medical exam, which might uncover issues that will make insurers less willing to cover you. Even if you pass the exam or otherwise provide what's called \"evidence of insurability,\" premiums typically get more expensive as you get older, regardless of your health.\nYou can avoid the need for a medical exam by getting a term life policy that has a renewal guarantee. This guarantees you can start a new term when the current term is up without getting a medical exam or otherwise documenting your health. Your premiums will still go up due to your age, but if you've developed a health problem—for example, you had a triple bypass right before the original term life policy ended—the life insurance company will still have to insure you.\nBecause term life insurance generally costs less than permanent life insurance for the same amount of coverage, it can be a good choice for families on a budget. You can also get _convertible_ term life insurance policies; these can be converted into permanent life insurance policy with cash value. END
 TITLE: What Type of Life Insurance Should I Get? CONTENT: What Is Whole Life Insurance?\n-----------------------------\nThere are several types of permanent life insurance, of which _whole life insurance_ is the most common. Permanent life insurance differs from term life in two significant ways: It lasts as long as you live, and it has a cash value in addition to the death benefit (or face value). The cash value of a permanent life insurance policy grows tax-deferred over time. Once the cash value reaches a certain point, you have several options for using it.\n*   You can borrow against it without the need for a credit check, although any unpaid loan balance will reduce your death benefit. You can also use it to pay the premiums, eliminating any out-of-pocket spending on life insurance.\n*   You can withdraw some or all of it. The cash value of your permanent life insurance can be a source of income, and unlike most retirement savings vehicles, you can access it at any age. Withdrawing cash value will lower the amount of your death benefit; withdrawing all of it (called surrendering the policy) will cancel your insurance.\n*   You can trade it in to increase your death benefit. When you die, the cash value of permanent life insurance goes to the insurance company, not to your beneficiary. If you want that money to go to your heirs, you can usually exchange it for an equivalent increase in the death benefit.\nPermanent life insurance is significantly more expensive than term life insurance, and you risk losing the cash value if you don't access it before you die. For those who are maxing out other retirement investment vehicles, though, it can offer another way to grow their wealth and leave money to their heirs.\nWhole life insurance is the most conservative permanent life insurance option for those seeking both insurance and investment growth. The premium stays the same no matter how old you are, and the death benefit is guaranteed. The cash value comes from dividends paid by the insurer and is guaranteed to increase every year. However, you don't have a lot of flexibility with a whole life plan: You can't choose what you invest in or change the policy coverage once you've set up the plan.\n_Universal life insurance_, another type of permanent life insurance, offers a bit more flexibility. Cash value growth is guaranteed, but you may be able to modify your coverage or premiums.\nIf you're more comfortable with risk, you may be interested in _variable life insurance_. This type of permanent life insurance lets you choose where to invest your cash value—for example, in stocks, bonds or money market accounts—giving you the potential for greater returns. The tradeoff: Your cash value is not guaranteed.\nFinally, _variable universal life insurance_ combines aspects of universal and variable life insurance. You can select your investments, adjust your coverage and may be able to modify your premium payments. As you might expect, this is a riskier investment, with no guarantee your cash value will increase. END
 TITLE: What Type of Life Insurance Should I Get? CONTENT: Other Forms of Life Insurance\n-----------------------------\n_Joint life insurance_ is a less common form of life insurance that many people aren't aware of. A joint life insurance policy covers two people (usually spouses) and can be either term or permanent life insurance. There are two types of joint life insurance: first-to-die and survivorship.\nA _first-to-die_ life insurance policy pays a death benefit to the surviving spouse when the first one dies. At that point, the policy is no longer in force. If the surviving spouse wants life insurance, they have to buy a new insurance policy.\nWhy would you buy a joint first-to-die policy? In some cases, getting a joint policy can be cheaper than getting two separate life insurance policies. However, if one spouse is in poor health, the high cost to insure them could drive up the overall premiums. By purchasing a joint policy, you also lose the ability to tailor coverage for each spouse.\nA _survivorship_ life insurance policy (sometimes called second-to-die) does not pay out until both spouses die. When the first spouse dies, the survivor must keep paying the insurance premiums to keep the policy in force. When the second spouse dies, the heirs receive the death benefit.\nBecause there is no payout when the first spouse dies, survivorship policies are not meant to provide income replacement for the surviving spouse. Instead, they're typically used by high-net-worth couples to ensure their heirs receive an inheritance or have enough money to pay estate taxes.\nWhen buying any type of joint life insurance policy, be sure to find out what happens to the policy if you divorce. END
 TITLE: What Type of Life Insurance Should I Get? CONTENT: Can You Have More Than One Life Insurance Policy?\n-------------------------------------------------\nMany people have more than one life insurance policy. Common situations where multiple policies make sense include:\n*   **Your employer offers life insurance.** Many people receive life insurance at little or no cost as an employee benefit. Since employer-provided life insurance coverage ends when your employment does, you shouldn't rely on it as your sole form of life insurance.\n*   **It's cheaper than increasing the coverage on your current policy.** If you buy a house with a bigger mortgage, get a massive raise or have another child, you might want more life insurance. Buying additional policies sometimes costs less than increasing the death benefit on your existing policy.\n*   **You want to use the \"ladder strategy.\"** This is a financial planning tactic where you buy different amounts of term life insurance for different life stages. For instance, a young family with a 30-year mortgage could take out a 30-year term life insurance policy that covers the amount of the mortgage and a 20-year term life insurance policy to cover child-rearing costs. Laddering can be complex; a financial advisor can help you decide if this strategy is right for you.\nAlthough there's no law against having multiple life insurance policies, there is a limit to the total amount of coverage you can get. When deciding how much coverage to offer you, insurers consider several factors, including your existing coverage, income, projected years in the workforce, debts and who would be financially impacted by your death.\nBecause life insurance is meant to replace your income and cover your debts, the amount you can qualify for is commensurate with your earning power and financial obligations. For example, if you're 30, earn $150,000 a year, are married with six children and have a $500,000 mortgage, you will generally be able to get more life insurance than a single 55-year-old who earns $50,000 a year, has no children and owns their home free and clear. END
 TITLE: What Type of Life Insurance Should I Get? CONTENT: How to Find the Right Life Insurance Policy\n-------------------------------------------\nClearly, life insurance can get complicated. To find the best life insurance policy for your situation:\n*   **Decide how much coverage you need.** Add up your debts (such as the outstanding amount of your mortgage and car loans). Then determine how much income you'd need to replace if you die, and for how many years you'd like to replace it. For example, if your spouse is 35, you might want to replace income for 30 years until he or she is 65 and can access Medicare, retirement accounts and other sources of income. Finally, add up your liquid assets (such as savings accounts and investments). Subtract your assets from the debts you owe and the income you need to replace, and you'll have a good estimate of how much insurance to buy.\n*   **Decide on the term and policy that work best for you.** How long do you need to cover expenses for your family? If your children are almost grown and will be out of the house soon, you may want a shorter-term policy than if they are toddlers. If you like the idea of cash value and can afford higher premiums, permanent life insurance might be a better option than term life insurance.\n*   **Shop around for the best prices.** You can get estimated quotes online or by contacting an insurance agent. An independent insurance broker representing a variety of insurance companies can provide a wide range of products to choose from, helping you consider all your options. END
 TITLE: What Type of Life Insurance Should I Get? CONTENT: The Best Type of Life Insurance for You\n---------------------------------------\nLife insurance can be the foundation of a financially secure future for your family. Choosing the right life insurance can be confusing, however, so you may want to consult an expert. A financial advisor or estate planner can help you determine how life insurance fits into your overall financial plan and identify the best types of insurance to achieve your goals. END
 TITLE: Term vs. Whole Life: Which Should I Get? CONTENT: Term Life vs. Whole Life Insurance\n----------------------------------\nBoth term and whole life insurance provide protection in the event that you die—but for the most part, that's where the similarities end. Many have compared the two to buying a home versus renting one. Here's why:\nWith whole life insurance, you'll get a cash value account that grows over time. If you decide to cancel your policy at some point in the future, you may be able to access some or all of the cash that's built up. In contrast, term life insurance offers protection only, and once your policy's term ends, you don't get anything in return. This makes it more like auto or homeowners insurance, which doesn't build up value, but protects you when you need it.\nHere's a deeper dive into both term and whole life insurance. END
 TITLE: Term vs. Whole Life: Which Should I Get? CONTENT: Which Type of Life of Insurance Should I Choose?\n------------------------------------------------\nWhile there's no one-size-fits-all answer to this question, term life insurance is better suited for most consumers. This is primarily because term insurance is more budget-friendly, and it provides the coverage you need without the complication of a cash value account.\nAlso, because cash value growth rates are low, you'll likely get more long-term value by purchasing term insurance and then investing the difference between the cost of term and whole life (assuming you can afford both types of policies).\nHowever, if you have a high net worth and you've exhausted all of your tax-advantaged retirement and health savings options and can afford a whole life policy, the tax-deferred growth and safe, guaranteed return can be appealing compared with riskier options. END
 TITLE: Term vs. Whole Life: Which Should I Get? CONTENT: How to Get Life Insurance\n-------------------------\nIf you want to purchase term life insurance, you can typically start the process by getting a quote online, directly from an insurer or through a life insurance agent or comparison website.\nYou may also be able to purchase whole life insurance through a comparison website, but in most cases, you'll need to work directly with an agent.\nDuring this process, it's best to work with an independent agent who doesn't work for any specific insurance company. Independent agents are able to shop around and compare features and rates from multiple companies to help you save as much as possible.\nWhen you submit your application, you'll typically need to undergo a medical exam. There are ways to get around the exam with no-exam insurance. But because opting out of an exam causes the insurance company to take on more risk, those policies are typically more expensive.\nOnce you've completed the application and the medical exam, the insurer will notify you that you've been approved or denied. It will also provide a final rate, and you'll have the option to accept or decline the offer.\nIf you accept it, be sure to make all of your insurance payments on time. Otherwise, you may lose the coverage. END
 TITLE: Term vs. Whole Life: Which Should I Get? CONTENT: Will the Insurance Company Check My Credit?\n-------------------------------------------\nHistorically, life insurance companies didn't require a credit check during the application process. But that's changing quickly.\nFor example, LIMRA, a global trade association for life insurance companies, found that the number of insurers who use credit checks increased from 18% in 2017 to 49% in 2019.\nIn general, though, insurance companies use what's called a credit-based insurance score rather than the traditional FICO® Score☉ lenders use. A credit-based insurance score provides insurance companies with the information they need to determine the likelihood that you'll miss premium payments.\nAs a result, having a good credit score could improve your chances of scoring a low rate on your insurance policy. END
 TITLE: Term vs. Whole Life: Which Should I Get? CONTENT: Establish Good Credit to Save Money\n-----------------------------------\nA good credit score could not only save you money on life insurance but also other forms of insurance and, of course, loans and credit cards. Before you apply for a life insurance policy, check your credit score to get an idea of where you're at and to help you decide if you need to take steps to improve your credit.\nAlso, check your credit report to determine where you can start addressing potential issues that are hurting your credit score. This may include late payments, high credit card balances, frequent credit applications or even potential inaccuracies on your report.\nBuilding credit isn't always easy, and it can take time to achieve your goal, especially if you have significant negative items on your reports. But the savings in several areas of your financial life are worth every ounce of effort it takes to achieve your goal. END
 TITLE: How to Borrow Money From Your 401(k) CONTENT: How Borrowing From Your 401(k) Works\n------------------------------------\nMost 401(k) programs let you set up a loan all on your own, without any assistance, via the website you use to handle other 401(k) tasks, such as changing your contribution amounts and allocating your savings to different investment funds.\nSetting up the loan is as simple as finding the loan page on the 401(k) site and specifying the amount you want to borrow. The online form won't let you borrow more than you're entitled to, and interest rate and payroll deduction payments based on a standard five-year repayment period will be calculated automatically.\nOnce you authorize the loan, the amount of the loan will likely be included with your next paycheck (or placed in your checking account even sooner, if you use direct deposit).\nIf you have any questions about the process, you'll find an option for contacting fund administrators on the webpage. END
 TITLE: How to Borrow Money From Your 401(k) CONTENT: How Much Can I Borrow?\n----------------------\nThe most anyone can borrow from a 401(k) plan is $50,000, but if the total vested amount in your plan is less than $100,000, you can only borrow up to half of that total. One exception in some plans is an option to borrow up to $10,000, even if you have less than $10,000 in vested funds.\n### Repayment Terms on 401(k) Loans\n*   You must pay back your loan within five years. You can do so via automatic payroll deductions, the same way you fund your 401(k) in the first place. There is no penalty for paying off the loan sooner than that.\n*   You must pay interest on the loan, at a rate specified by your 401(k) fund administrator. Typically the rate is calculated by adding one or two percentage points to the current prime interest rate. END
 TITLE: How to Borrow Money From Your 401(k) CONTENT: Drawbacks to 401(k) Loans\n-------------------------\nAssuming the loan and repayment process goes perfectly smoothly, there are several major reasons you should think twice before borrowing from your 401(k) fund:\n*   A 401(k) loan uses money that should be invested and helping accumulate wealth for your retirement. The funds you pull out of your 401(k) cannot gain investment value, and the interest payments you're making to yourself are unlikely to come close to matching the gains you'd make in a moderately successful stock or index fund. (And of course, if you weren't paying yourself back, you could be using what you're paying in interest to increase your 401(k) contribution or invest elsewhere.)\n*   For most borrowers, retirement savings get put on hold until the 401(k) loan is repaid. Payroll deductions for 401(k) loan repayment typically eliminate or greatly reduce 401(k) payments for the five years (or, ideally, less time) it takes to pay off the loan. Losing five or so years of retirement savings, and likely forfeiting some or all of your employer's matching contributions to your 401(k) in the process, is potentially a huge setback in your retirement savings process. The goal with 401(k) plans, as with all long-term savings programs, is to stash funds in small, steady amounts over long periods of time, and let money accumulate through the power of compound growth and reinvestment. A 401(k) loan disrupts that process in a major way, and most funds can never fully recover.\nIf your 401(k) loan process doesn't go smoothly, you could face even worse consequences:\n*   If you lose your job during the repayment period, you must pay back the entire outstanding balance within a grace period specified in your 401(k) loan agreement, or the loan will be considered in default. Grace periods are typically only a few months.\n*   If you default on a 401(k) loan, the outstanding loan balance is treated as taxable income and will likely increase the amount you owe in federal income taxes.\n*   Unless you are older than 59 1\/2, you also will be charged a 10% penalty for making an early withdrawal from your 401(k) fund on any unpaid portion of the loan. END
 TITLE: How to Borrow Money From Your 401(k) CONTENT: Will a 401(k) Loan Affect My Credit?\n------------------------------------\nTaking out a 401(k) loan has no direct impact on your credit scores.\n*   You don't need a credit check to qualify for a 401(k) loan, so taking one out doesn't trigger a hard inquiry and result in a temporary dip in credit scores.\n*   Payments on 401(k) loans are not tracked by the national credit bureaus (Experian, Equifax and TransUnion), so they do not appear in your credit reports and cannot factor into credit score calculations. If you miss a payment or even default on the loan, your credit scores will not change.\nNote, however, that the extra tax and penalty expenses that come with a 401(k) loan default can make it difficult to pay your credit bills, which can jeopardize your credit standing indirectly. END
 TITLE: How to Borrow Money From Your 401(k) CONTENT: Consider Other Options\n----------------------\nBecause of the significant drawbacks to borrowing from your 401(k) fund, it's best to consider this option only as a last resort in a financial emergency. Before you raid your 401(k), it would be wise to explore other borrowing options, including personal loans, home equity loans, and even borrowing from family or friends.\nIf you do end up borrowing from your 401(k) fund, do everything you can to pay the loan back as quickly as you're able. If possible, also try to maintain at least some contributions to your 401(k) during the payback period—ideally enough to get your full employer matching contribution so you're not leaving compensation on the table. END
 TITLE: How Much Should I Contribute to 401(k)? CONTENT: How Much Should You Be Putting in Your 401(k)?\n----------------------------------------------\nIn short, this depends on your situation. If you're getting close to retirement and your savings isn't up to snuff, you might want to max out your 401(k) contributions (more on that below). A general rule of thumb by financial experts is to put 10% to 15% of your pre-tax income into your 401(k). But if you're 40 or older, consider setting aside 20%.\nIf you're younger and have decades to save, you might be fine contributing slightly less, especially if you can up your contributions over time. Here are a few other things to consider as you think about how much to set aside:\n*   Do your family members have long lifespans? If many of your relatives live well into their 80s or 90s, you might need to save more than the average person.\n*   Do you expect other sources of income in retirement, such as investment dividends or a pension? If you will be getting money from these and other investments, you won't need to set aside quite as much in your 401(k) account. As of now, you can also expect to collect Social Security starting at age 67. That number could change, however, and with the Social Security Board of Trustees projecting it will only be able to pay out 75% of scheduled benefits by 2035, you should concentrate on other avenues for the bulk of your retirement savings.\n*   How do you expect your expenses in retirement to compare with your expenses now? If you think you'll live on significantly less, you might not need to set aside as much. But if you envision yourself living a cush life in retirement, you might want to contribute a higher amount to your 401(k). Also keep in mind that while you may plan to have a simpler lifestyle in retirement, other factors could play a part in your expenses, such as rising health care costs or a desire to travel to see family. END
 TITLE: How Much Should I Contribute to 401(k)? CONTENT: How to Get the Most out of Your 401(k)\n--------------------------------------\nWhile you can just set up your 401(k) account with your employer's default settings, you might be missing out on valuable opportunities to increase your retirement savings. Here are a few ways to maximize your 401(k) plan and increase the amount of money in your retirement account.\n*   **Take advantage of an employer match.** Many employers offer 401(k) matches that incentivize you to save by essentially giving you free money if you contribute a certain amount. Try to contribute enough to your 401(k) to get the full match. If your employer matches up to 3% of your pre-tax income, for example, make sure you put in 3%. That means you'll actually get 6% of your income for your retirement, doubling the amount of money going into your 401(k).\n*   **Boost your contribution when you get a raise.** Every time you get a raise at your job, increase the amount you contribute to your 401(k) since you won't feel the money coming out of your budget. Even if it's only 1% more of your salary, it can make a big difference over time.\n*   **Max it out.** Because of its tax benefits, there are limits to how much you can put into a 401(k) account each year. As of 2019, the IRS permits employees under age 50 to contribute up to $19,000 to their 401(k) annually. Employees over 50 are allowed an additional \"catch-up\" contribution amount of $6,000 per year to help, well, catch up on retirement savings if they're behind. The more you can set aside, the better, due to the tax benefits—so try to contribute as much as you can within the limits.\n*   **Get out of debt.** It's hard to set aside money every paycheck for retirement if you're currently bogged down with student loan debt, credit card debt or any other financial burdens. Work to reduce your debt burden so you have more income available for retirement savings. That said, be sure you're always contributing something to your 401(k).\n*   **Save to avoid a 401(k) loan or withdrawal.** While you can pull from your 401(k) before retirement in the case of an emergency, you could pay steep financial penalties for doing so, and you'll lose your tax-advantaged retirement savings. Create an emergency fund to give yourself a savings buffer so you don't have to pull from your 401(k) when a disaster strikes. END
 TITLE: How Much Should I Contribute to 401(k)? CONTENT: What to Do if You've Maxed Out Your 401(k) Plan\n-----------------------------------------------\nSo you've put the maximum amount of money in your 401(k) account for the year. Good for you! If you want to save even more for retirement, you have a few other options.\n*   **Open an IRA.** You can open an Individual Retirement Account on your own with a brokerage. An IRA is another type of tax-advantaged retirement account, and it's not connected to an employer. They come in two main types: a Roth IRA, in which you contribute post-tax income and withdraw it tax-free later, or a traditional IRA, in which you contribute pre-tax income and pay taxes when you take it out at retirement. However, keep in mind that there are income limits for opening a Roth IRA, so not everyone is eligible. Talk to an accountant to find out which tax strategy makes the most sense for you.\n*   **Make other investments****.** There's no limit to how much you can invest if you open a general brokerage account and purchase individual stocks, bonds and mutual funds. If you're not sure how to invest strategically, consider hiring an investment advisor who can help you choose investments or manage them for you. If you're a conservative investor, you could invest in CDs, which have a low but guaranteed return. While these types of investments aren't tax-advantaged in regard to retirement, they may provide more cash for retirement—and you won't have to pay penalties if you need to access the money before then. END
 TITLE: How Much Should I Contribute to 401(k)? CONTENT: Sacrifice Now for Less Stress Later\n-----------------------------------\nIt can feel like a drag to set aside a chunk of every paycheck for retirement, especially if it's a long way away and you have other financial goals, such as buying a house. But starting a 401(k) as soon as possible, and maximizing it with employer matches and other strategies, helps make retirement more feasible and will make your lifestyle more comfortable when the time comes. Plus, it will help reduce financial stress and anxiety when you no longer have income from a job, allowing you to more easily enjoy your retirement. END
 TITLE: How to Calculate Your Net Worth CONTENT: What Is Net Worth?\n------------------\nEssentially, your net worth tells you how much money you have after you deduct what you owe from what you have. As a result, it incorporates both sides of your personal balance sheet: assets and liabilities.\n\"Financial success depends largely on your ability to grow your assets while decreasing your debts,\" says Ryan McPherson, founder of financial services firm Intelligent Worth in Atlanta. \"No other number represents your progress on these two fronts like your net worth.\"\nYour net worth can be especially helpful when things don't go as expected. \"In the event that you have a major financial catastrophe such as a death, illness or job loss,\" says Roslyn Lash, financial educator and founder of Youth Smart Financial Education Services in Winston-Salem, North Carolina, \"knowing this figure can help you determine if and how long you could sustain yourself.\"\nKnowing your net worth can also help to reaffirm or establish your financial goals and your budget. And finally, your net worth is a good figure to use to measure your progress over time. If you're increasing your investments and savings and reducing your debt, you'll be in better shape to reach those financial goals. END
 TITLE: How to Calculate Your Net Worth CONTENT: How to Figure Out Your Net Worth\n--------------------------------\nCalculating your net worth is simple: Subtract your liabilities from your assets. But the process can take time. Here are the steps to take to get your net worth number.\n### 1\\. Pick a Date\nYour net worth is a snapshot of your overall financial health at a specific time. So pick a date, preferably at the end of a month, quarter or year, so you can have a good reference point in the future.\n### 2\\. Gather Your Data\nThe most time-consuming part of the process, this is where you'll gather all of your balances. Try to get the most accurate balance for the date you chose for your bank accounts, credit cards, loans, investments, and other assets and liabilities.\nIf you own a home or business, use a recent appraisal or a conservative estimate. For your car, use the Kelley Blue Book value to get a rough idea.\nWrite down each of your assets and liabilities or use a spreadsheet to put them all in one place. Take your time so you don't accidentally forget something. \"The method doesn't matter so long as your asset and debt numbers are accurate and you track your net worth on a consistent schedule,\" says McPherson.\n### 3\\. Add Up All of Your Assets and Liabilities\nNow it's time to separate your assets from your liabilities and add them up. If you already have them written down or in a spreadsheet, the process shouldn't take long. Just remember, a liability is something you owe, while an asset is something you could potentially use to pay off your liabilities.\n### 4\\. Do the Math\nAgain, your net worth is the difference between your assets and liabilities, so subtract the total amount you owe all of your creditors from the total amount you have in the form of cash, investments and other assets. END
 TITLE: How to Calculate Your Net Worth CONTENT: Why Knowing Your Net Worth Is Important\n---------------------------------------\nCalculating your net worth regularly is essential to your financial success. Not only can it give you an idea of how you're doing overall, but it may be able to provide some hints on what you can do to get or stay on the right track.\nFor example, it's possible to have a negative net worth, especially if you're young and haven't had the chance to generate enough savings. If this is the case for you, you may want to focus on paying off debt so you're not left broke if something bad happens.\nIf your net worth is growing, on the other hand, you can look at your individual assets and liabilities and think of ways you can speed up or sustain that growth. For example, you may consider taking some of your savings and putting it into an investment account or paying down high interest debt.\nLash advises updating your net worth calculation once a month. \"That will help you see how your assets are doing and also help keep your spending in line so that you don't go backwards instead of forwards,\" she explains.\nIf the thought of having to calculate your net worth regularly doesn't sound fun, the good news is that you may not have to do it yourself. Some budgeting apps, such as Mint and You Need a Budget, allow you to connect all of your financial accounts and can show you what your net worth is at any time. END
 TITLE: How to Calculate Your Net Worth CONTENT: The Bottom Line\n---------------\nCalculating your net worth is one of the most important personal financial moves you can make. You can use it as a measuring stick for where you stand right now money-wise, and you can use it as a platform to build wealth going forward.\nNo matter how you use your net worth figure, calculate it as soon as possible, and keep on updating it. That way, you'll have a great assessment of your financial position—now and for the rest of your life. END
 TITLE: Bank or Dealership: What’s the Best Way to Finance a Car? CONTENT: Financing Through a Bank\n------------------------\nBank financing involves going directly to a bank or credit union to get a car loan. In general, you'll get preapproved for a loan before you ever set foot in the dealership. The lender will give you a quote and a letter of commitment that you can take to the dealer, saving yourself some time when finalizing the contract. Having a specific approved loan amount on paper could also keep the car salesperson from trying to persuade you to include add-ons that you don't need.\nDepending on the bank or credit union, you can apply for preapproval online or at a local branch. You may need to provide information about the vehicle, which could cause some delays if you're not yet sure what you want.\nThe rate offer from a bank or credit union will be the true interest rate and doesn't include any markup, which can happen when you work with a dealer. In general, though, the rate quote you get isn't a final offer. When you head to the dealership to purchase the car, the lender will run a hard credit check and review your full credit report before approving your application and determining your loan rates.\nOne thing to keep in mind is that your options may vary depending on whether you're buying a new or used car. Some banks and credit unions have limits on the vehicle's age and mileage, and new vehicles may qualify for lower interest rates in general. END
 TITLE: Bank or Dealership: What’s the Best Way to Finance a Car? CONTENT: Financing Through the Dealer\n----------------------------\nDealer-arranged financing works the same way as bank financing—the only difference is that the dealer is doing the work on your behalf.\nAfter you choose your vehicle, the dealer will have you fill out a credit application, which they'll submit to multiple lenders. This allows you to compare rates and terms to choose the best option for you.\nIn some cases, however, a dealer may negotiate a higher interest rate with you than what the lender offers and take the difference as compensation for handling the financing. In other words, you might not be getting all the information you need to make the best decision.\nIn general, you can usually get lower interest rates on a new car through a dealer than on a used car. In fact, some dealers may offer promotional financing on brand-new models, including rates as low as 0% APR to those who qualify.\nAnother form of dealer financing occurs when the dealership provides in-house financing. These buy here, pay here dealerships specialize in working with people with bad or no credit. But the costs and down payment requirements on these loans are high, and there's also a higher chance of repossession. END
 TITLE: Bank or Dealership: What’s the Best Way to Finance a Car? CONTENT: How to Choose the Best Option\n-----------------------------\nIn any situation, it's best to choose the option that will save you the most money. Unfortunately, it's not always easy to know what that option is upfront.\nAs a result, it may be worth trying to get preapproved by a bank or credit union before you head to the dealership, and then asking the dealer to get quotes as well. That way you can compare and determine which option is best.\nIt can take some time for you to gather quotes from individual banks and credit unions.\nIf you have bad credit, it may be especially important to look for options through banks and credit unions. Even if the interest rate is higher than you might want, it can still be a better setup than what you'd get with a buy here, pay here dealership.\nRegardless of which option you choose, it's important to know that applying for auto loans can affect your credit scores. Every time you apply for a loan, the lender runs a hard inquiry on your credit report, which can knock a few points off your score.\nApplying for multiple loans in a short period can compound that negative impact, but if you do all your rate shopping in a short period—typically 14 days, but sometimes longer—all the inquiries are combined into one when calculating your credit score. END
 TITLE: Bank or Dealership: What’s the Best Way to Finance a Car? CONTENT: Prepare Yourself Financially Before Applying for an Auto Loan\n-------------------------------------------------------------\nUnderstanding how to get the best financing for your car is important, but it's just as important to prepare yourself in other ways. For starters, check your credit score to see where you stand. If it needs work and you have time, consider taking steps to improve your credit before you apply.\nAlso, work on saving a down payment for the loan. The higher the down payment, the less you have to finance, and the less you'll pay in interest over the life of the loan.\nFinally, check your budget to make sure you can afford the monthly payment. The last thing you want is to drive off the lot in a car that will cause you more distress than joy. END
 TITLE: How to Buy a Car From a Private Seller CONTENT: Advantages and Disadvantages of Buying a Car From a Private Seller\n------------------------------------------------------------------\nYou'll want to consider all the pros and cons of buying a used car from a private party before you proceed. In some cases, you might be better off looking for a preowned car at a dealership, particularly if you want a warranty. However, working with a private party has its benefits as well. END
 TITLE: How to Buy a Car From a Private Seller CONTENT: Secure Your Financing\n---------------------\nIf you can afford to buy a used car with cash, that may be the best way to save money and simplify the process. However, some lenders offer private party auto loans if you need financing. Overall, about one-third of used vehicles were purchased with financing as of the third quarter of 2020, according to Experian Automotive Industry Insights.\nBefore you apply for financing, you may want to check your credit. Credit reports from all three credit bureaus (Experian, TransUnion and Equifax) are available at AnnualCreditReport.com. And, you can get your Experian credit report along with your credit scores for free through Experian. If you don't have a good credit score, it may be difficult to qualify for financing with favorable terms. In that case, you may want to rethink your timeline and budget and focus on improving your credit first or look for a car you can afford to buy with the cash you have on hand.\nIf you think your credit is good enough to qualify you for affordable financing, look for lenders that offer private party auto loans, which is something not all lenders do. The rates, terms and requirements can vary depending on the lender, so shopping for a loan is an important step in finding the best deal.\nDepending on the lender, you may also need to have a car picked out before applying for financing. However, you can sometimes get preapproved for an auto loan if you haven't decided on a specific car yet.\nWhen you're applying for an auto loan, you can take a strategic approach by submitting all your applications within a 14-day window. Applying for an auto loan causes a hard inquiry to be added to your credit report, which may hurt your credit scores. However, credit scoring models count multiple auto loan inquiries as a single inquiry for scoring purposes if they happen during a short period. END
 TITLE: How to Buy a Car From a Private Seller CONTENT: Find Your Car\n-------------\nFrom asking friends and family to searching online, there are many ways to connect with private party sellers. Craigslist and eBay are two popular marketplace sites for private party car sales, and there are car-specific sites, such as Cars.com.\nAs you conduct your search, you can also use sites like Edmunds, Kelly Blue Book (KBB) and Consumer Reports to research makes and models you come across. Particularly when buying a used car, you'll want to consider the model's long-term reliability and average maintenance and repair prices.\nThese sites provide an estimated value of used vehicles based on factors including make, model and condition. They can help you decide if you'd be getting a good deal from the private seller—or if there's room to negotiate. END
 TITLE: How to Buy a Car From a Private Seller CONTENT: Pay Attention to the Vehicle History Report\n-------------------------------------------\nOnce you've found the car you want to buy, you'll want to take a look at its vehicle history report, also known as a vehicle identification number (VIN) report. You can get some basic information with a free VIN check:\n*   Safercar.gov to see if there have been any recalls on the model and whether the specific car has been repaired or upgraded.\n*   National Insurance Crime Bureau to check if the vehicle was reported stolen and not recovered, or if it has a salvage title.\nA paid VIN report will give you more details about the vehicle you're looking at. You can learn about its service history, ownership history and whether it's ever been in an accident or stolen. AutoCheck (operated by Experian) and Carfax are two popular VIN report providers. Compare the report to the seller's description and look for discrepancies that may be a red flag.\nIf you're serious about buying the car, you'll also want to take a test drive and potentially have a mechanic do a pre-purchase inspection. You'll likely have to pay for the inspection, which may run around $100 to $200, but it's often a worthwhile investment as trusted mechanics and technicians can give you the all-clear—or warn you about needed repairs or maintenance.\nThere are mobile inspection services that will come to you, or you can look for a local shop. Working with someone who specializes in the particular type of car could be a good idea, as they can also tell you about common issues that owners experience. END
 TITLE: How to Buy a Car From a Private Seller CONTENT: Watch Out for Private Seller Scams\n----------------------------------\nYou may be excited to buy a new car while avoiding a dealership, but you also want to watch out for scams. Scams can take different forms, but some common ones to watch out for include:\n*   **Title washing**: Even if it can run right now, you may want to avoid a car that has had significant damage that resulted in a salvage title. Sellers may try to \"wash\" the title by registering it in a new state. A VIN report can help reveal the car's true history.\n*   **Curbstoning**: Curbstoning refers to when a dealership pretends to be a private party selling a car, and it's illegal in many states. The seller may be offloading vehicles that have liens, bad titles or aren't safe to drive.\n*   **Fake escrow accounts**: A seller might not let you see the vehicle and tell you there's a lot of demand or they're in a rush to sell. They'll then ask you to send the money to a third-party escrow account to \"place a hold\" on the car or purchase it for delivery. In reality, however, they control the account and simply take your money once the transfer is complete.\n*   **Fake guarantees**: Sellers may also try to push a deal forward by telling you that there's a guarantee from whichever payment platform you use, which might not actually be the case. Some platforms do offer a level of protection, so make sure you understand your rights as a consumer before you agree to anything.\n**In general, it's best to avoid**:\n*   Sellers who say they're in a rush to sell a car for less than it's worth because of a health issue, move, military deployment or other \"emergency.\" Scam artists tend to ramp up the time pressure so you have less of a chance to think through the decision.\n*   Sellers who request you pay them with gift cards, reloadable prepaid cards or wire transfers.\n*   Sellers who refuse to meet you in person or let you have an independent mechanic or technician inspect the vehicle.\nWhile you can save money by buying a used car from a private seller rather than a dealership, set realistic expectations and don't let a seller pressure you into sending money. As with many major purchases, if a deal seems too good to be true, it's often best to move on. END
 TITLE: How Old Do You Have to Be to Buy a Car? CONTENT: How Old Do You Have to Be to Get an Auto Loan?\n----------------------------------------------\nAn auto loan is a legally binding contract that lays out the financing details of a car purchase. Minors can sign contracts, but they can't be held to the terms of a contract until they reach the \"age of majority\"—which is 18 years old in almost every state. As such, few lenders are willing to extend a loan to a minor, and the ones that do require a co-signer.\nA lender will want to see an established credit history as well, which also presents a roadblock for minors. A minor shouldn't even have a credit report unless they've been added as an authorized user on an account belonging to an adult.\nIf you're an adult with a teen driver at home, one option is to take out the loan in your own name. Once you satisfy your payment plan, you'll be the vehicle's legal owner and can then transfer the title into your adult child's name when they come of age. Your payment activity is reported to the credit bureaus, which means the loan will show up on your credit report.\nCar insurance is another detail to consider. The insurance policy is itself another type of contract, so it presents the same legal hurdle the loan does for minors. One workaround is to add your teen to your own car insurance policy. You can think about taking them off when they turn 18, but they may struggle to find affordable coverage on their own as teens are generally seen as riskier drivers.\nA lack of credit history can also pose a problem since auto insurers in many states can consider your credit-based insurance score when deciding your premium. This is why many parents choose to keep their kids on their car insurance until they have more experience driving and are able to cover their own insurance payments. END
 TITLE: How Old Do You Have to Be to Buy a Car? CONTENT: Is There an Age Requirement to Buy a Car With Cash?\n---------------------------------------------------\nThings aren't so cut and dried if your teen wants to buy a car in cash. For starters, most states will not allow someone under the age of 18 to have a car title in their name. There are some exceptions—Texas, for example, does allow minors to title a car. You can check with your state's motor vehicles department to clarify what the law says.\nBeyond obtaining the title and registering the vehicle with your state, there's still the issue of your teen being able to legally drive the car on the road, which requires car insurance. As explained above, minors will need an adult's help here. END
 TITLE: How Old Do You Have to Be to Buy a Car? CONTENT: Additional Auto Loan Requirements\n---------------------------------\nThose planning on financing a car for their teen driver will have to meet certain requirements to be approved. Every lender is different, but you can expect them to look into the following:\n*   **Credit**: Auto loan lenders will consider your creditworthiness when evaluating your loan application. Stronger scores, for instance, can suggest that you're a responsible borrower who's unlikely to miss a payment. This often translates to better rates and borrowing terms. The opposite is also true—poor credit could jeopardize your ability to qualify for an affordable auto loan.\n*   **Income and employment**: Even with perfect credit, lenders want reassurance that your budget has room for a car payment. A lender is likely to ask you about your income and may verify your employment situation to make sure you have a reliable and steady income. You'll likely need to provide recent pay stubs (or bank statements if you're self-employed) when applying.\n*   **Identity and residence**: Be ready to provide your government-issued ID and proof of residence when applying for an auto loan. This is to verify your location should the lender need to contact you regarding a future missed payment. END
 TITLE: How Old Do You Have to Be to Buy a Car? CONTENT: How and Where to Get an Auto Loan\n---------------------------------\nAuto loans are available through car dealerships, banks, credit unions and even online lenders. Before you fill out an application, consider crossing the following action items off your to-do list. Doing so can help streamline the process and help you save money:\n*   **Check your credit score.** Again, your credit can make a big difference when it comes to getting approved. It can also impact your interest rate and loan terms, which affect how much you ultimately pay over the life of the loan. If possible, it's wise to check your credit several months before making a purchase so you know where your scores stand. You'll also want to review your credit report to make sure there aren't any major red flags that could tank your loan application. That said, there are steps you can take to get a car loan with bad credit.\n*   **Determine your budget.** Before test driving your teen's new car, figure out how much you can reasonably afford. Will you be paying for it yourself, or will your child be contributing in some way? Either way, coming to the table with a down payment of at least 10% is typically required when seeking an auto loan.\n*   **Shop around for car loans.** Comparing quotes from different lenders can pay off in the long run. If you're worried about the impact submitting multiple credit applications can have on your credit scores, doing so within a short time frame can help minimize the impact.\nIf you end up going with a bank or credit union for your auto loan, getting preapproved can help give you some leverage when negotiating with car dealers. You may also be able to finance your teen's new car directly through a car dealership. Either way, comparing offers can save you money over the long term. END
 TITLE: How Long Does It Take to Get a Secured Credit Card? CONTENT: The application process for secured and unsecured credit cards is similar. You will need to fill out the online application, and the card issuer will then evaluate your income and possibly other factors to determine your ability to repay any debt you incur on the card. The lender might request income documentation to verify your claims, and may or may not do a credit check.\nOnce you submit your application, you could receive a decision in minutes. If approved, you will find out your credit limit and the security deposit required to open the account. To make sure the process goes smoothly, it's best to have the funds for the deposit on hand. Cardholders typically receive their new secured card within seven to 10 business days, and can begin using the card right away.\nThere are instances where an approval decision cannot be made using the automated system. If this happens, expect written correspondence in the next seven to 10 days notifying you of the credit card issuer's decision. If you are not approved, the lender will send you a letter noting why and explaining your rights. END
 TITLE: How Long Does It Take to Get a Secured Credit Card? CONTENT: How Fast Can a Secured Credit Card Help My Credit?\n--------------------------------------------------\nA secured credit card can help you build credit if you use it to make small purchases and pay the balance in full on or before the due date each month. This shows creditors that you're able to responsibly manage your debts. Your credit score could also benefit if you pay on time, as payment history accounts for 35% of your FICO® Score☉ . Keeping the balance low is another credit booster because it helps your credit utilization, which is the second most important component of your credit score.\nThere's no set time frame for how long it takes for a secured credit card to help you build credit. But opening an account and making timely payments can add positive information to your report that will benefit your score and possibly help improve it over time. END
 TITLE: How Long Does It Take to Get a Secured Credit Card? CONTENT: Best Secured Credit Cards\n-------------------------\nConsidering a secured credit card to help improve your score? The following are good options. They all report to the three major credit bureaus (Experian, TransUnion and Equifax) to help begin boosting your scores:\n*   **Secured Mastercard® from Capital One**: Capital One will review your credit to determine whether you may put down a refundable security deposit starting at $49 to get a $200 initial credit line. If you want a higher credit line, you can deposit more that the minimum, up to your maximum approved line of $1,000. If you make all your payments on time, Capital One may offer you a higher credit limit starting at six months and possibly allow you to earn your deposit back as a statement credit. This card has no annual fee but a variable APR of 26.99%, which is on the higher side.\n*   **First Progress Platinum Prestige Mastercard® Secured Credit Card**: There's no minimum credit score requirement for this card, making it suitable for those with little to no credit history. You can apply with no negative impact on your credit score, it only takes a few minutes to get a decision, and you could get approved for a credit line of $200 to $2,000 if you're able to make a required refundable deposit of equal amount. There's an annual fee of $49, and the ongoing APR is a variable 9.99% Variable.\n*   **Merrick Bank Double Your Line® Secured Visa® Card**: With this product, your credit line will depend on the initial refundable deposit, which can be any amount from $200 to $3,000. You can add additional deposits at any time to increase your credit line up to $3,000. Once you've had the card for nine months, Merrick Bank will review your account activity to determine if you're eligible for a credit line increase without an additional deposit. There is no minimum credit score for this card. The card features a variable APR of 17.45% and an annual fee of $36. END
 TITLE: How Long Does It Take to Get a Secured Credit Card? CONTENT: *   **Secured Mastercard® from Capital One**: Capital One will review your credit to determine whether you may put down a refundable security deposit starting at $49 to get a $200 initial credit line. If you want a higher credit line, you can deposit more that the minimum, up to your maximum approved line of $1,000. If you make all your payments on time, Capital One may offer you a higher credit limit starting at six months and possibly allow you to earn your deposit back as a statement credit. This card has no annual fee but a variable APR of 26.99%, which is on the higher side. END
 TITLE: How Long Does It Take to Get a Secured Credit Card? CONTENT: *   **First Progress Platinum Prestige Mastercard® Secured Credit Card**: There's no minimum credit score requirement for this card, making it suitable for those with little to no credit history. You can apply with no negative impact on your credit score, it only takes a few minutes to get a decision, and you could get approved for a credit line of $200 to $2,000 if you're able to make a required refundable deposit of equal amount. There's an annual fee of $49, and the ongoing APR is a variable 9.99% Variable. END
 TITLE: How Long Does It Take to Get a Secured Credit Card? CONTENT: *   **Merrick Bank Double Your Line® Secured Visa® Card**: With this product, your credit line will depend on the initial refundable deposit, which can be any amount from $200 to $3,000. You can add additional deposits at any time to increase your credit line up to $3,000. Once you've had the card for nine months, Merrick Bank will review your account activity to determine if you're eligible for a credit line increase without an additional deposit. There is no minimum credit score for this card. The card features a variable APR of 17.45% and an annual fee of $36. END
 TITLE: How Long Does It Take to Get a Secured Credit Card? CONTENT: Alternatives to Secured Credit Cards\n------------------------------------\nIf you can't get approved for a secured credit card or would prefer to explore other options to build credit, consider these alternatives:\n*   **Get added as an authorized user on someone else's account.** You could benefit from becoming an authorized user on a parent's, family member's or close friend's credit card if you have minimal or no credit history—assuming the cardholder has exceptional payment history and is only using a small percentage of the total available credit. It's also important that the card issuer reports authorized-user account activity to the credit bureaus.\n*   **Apply for a credit-builder loan.** Credit-builder loans allow you to save money while establishing or rebuilding your credit. You can typically borrow $300 to $1,000, which you'll be able to access once you're done making monthly payments to reach your approved amount. There's no deposit requirement, and some lenders do not require credit checks to get approved. You could also possibly save on steep interest that you might otherwise pay on a credit card.\n*   **Open a debit card if you don't need additional credit.** If you don't need additional credit and simply need a way to pay bills electronically, consider opening a debit card. Swiping a debit card to make purchases will not help you build credit. It will, however, allow you to stay current on your bills and help you avoid the risks of borrowing money. END
 TITLE: How Long Does It Take to Get a Secured Credit Card? CONTENT: Consider a Secured Credit Card to Rebuild Your Credit\n-----------------------------------------------------\nIt doesn't take very long to get a secured credit card. You can use it to build or repair your credit by making all payments on time and keeping the balance low (or paying it off each month). Consider using Experian CreditMatch™ to find cards you may qualify for, or explore other alternatives to help boost your credit health if a secured credit card isn't a good fit. END
 TITLE: What Is a Checking Account? CONTENT: Different Types of Bank Accounts\n--------------------------------\n**Checking accounts** differ from other types of consumer bank accounts in their accommodation of frequent deposits and withdrawals. In contrast to accounts that pay interest to encourage long-term deposits, and which often charge fees for frequent withdrawals, checking accounts often pay little or no interest on deposits, but they typically allow unlimited transactions each month.\n**Certificate of deposit (CD)** accounts pay comparatively high interest rates (currently around 2.7%) on funds you agree to leave in the account for a fixed period of time (typically 12 or 18 months). You can withdraw funds from a CD in an emergency, but banks typically charge a penalty for doing so.\n**Savings accounts** pay a lower interest rate than CDs (roughly 2.4% at this writing), but allow withdrawals without penalty—although many charge fees if you make more than a certain number of withdrawals per month.\nMany checking accounts pay no interest at all, and those that pay interest typically offer lower rates than savings accounts (generally 1% or less in today's market). They may also require you to meet specific conditions to qualify for interest payments, such as setting up automatic paycheck deposits, maintaining a specific minimum balance (or average monthly balance), and making a minimum number of electronic bill payments each month. END
 TITLE: What Is a Checking Account? CONTENT: Benefits of a Checking Account\n------------------------------\nOpening a checking account is typically an important first step on the path to financial independence. A checking account gives you a place to deposit first paychecks and is a conduit for paying rent, cell phone and utility bills, and making payments on car loans and student loans. The benefits of having a checking account include:\n*   **Flexibility in paying for goods and services**, via paper checks, electronic bill pay services, debit card payments and contactless payments using your smartphone.\n*   **Fast access to your earnings**, without risk of loss or theft of a paper paycheck, through direct electronic deposit.\n*   **Federal insurance** on deposits up to $250,000.\n*   **Access to cash via debit card** at automatic teller machines (ATMs) and via cash back options at grocery stores and many other retail outlets. END
 TITLE: What Is a Checking Account? CONTENT: How to Choose a Checking Account\n--------------------------------\nWhen deciding where to open a checking account, there are a few things you should keep in mind:\n*   **Account types.** Many financial institutions offer several tiers of checking accounts, and they may push high interest accounts and free services that only apply to account holders who plan to maintain high account balances. If that's not you, ask about personal checking and be sure to find out what fees apply. If you're a student, ask about a student account; some institutions waive standard monthly fees for students (or anyone under age 24).\n*   **Office locations.** It may be convenient to pick a financial institution with locations near home or your workplace—but then again, that may not matter much once you set up your account and make your first deposit. If you arrange for direct paycheck deposit (and you should, if it's an option with your employer) and use online banking to monitor transactions and pay bills electronically, you probably won't need to visit the bank in person very often. Note that a growing number of financial institutions offer \"nontraditional\" offices in grocery stores and other retail locations—sometimes with longer hours than in freestanding branches.\n*   **ATM access.** Using a debit card or contactless payment is more secure, but sometimes you just need cash. ATMs are often the most convenient way to get it—and they may be the only option outside of normal business hours. While your debit card may work at wide variety of ATMs, most financial institutions charge fees to ATM users who aren't account holders, so if you plan on making cash withdrawals often, consider choosing a bank with lots of ATMs.\n*   **Overdraft protection.** You obviously shouldn't make payments that exceed the amount of cash in your checking account, but mistakes happen. If you do so, overdraft protection will cover your overage (up to a certain amount) so your payments will clear. The bank will likely charge you a fee for overdrawing your account, but you'll be spared penalties your payee might charge for processing an insufficient payment.\n*   **Fees.** If you can, find a checking account that doesn't charge fees. Some accounts charge fees if you allow your average monthly balance to dip below a certain amount, or if you exceed a certain number of electronic transfers each month. All financial institutions will charge a fee if you overdraw your account, but some are more severe than others, and you may want to seek out a more forgiving institution.\n*   **Consider a credit union.** When comparing candidates for opening your first checking account, take a look at credit unions as well as banks. In many cases, they offer lower fees and minimum balance requirements than banks, and some will even pay you back if other institutions charge you ATM fees, up to a certain dollar limit per month. END
 TITLE: What Is a Checking Account? CONTENT: How to Open a Checking Account\n------------------------------\nOpening a checking account is straightforward. There's not much more to it than visiting a branch office with your ID, proof of address (a utility bill will suffice) and cash or a check for your initial deposit, and filling out an application. Once you complete the application, the bank will send you a debit card and checks (if you want them), and you'll be able to start depositing and withdrawing money using your new account. For more information, see \"How to Get a Checking Account.\" END
 TITLE: What Is a Checking Account? CONTENT: Importance of Staying in Good Standing\n--------------------------------------\nA potential hitch to opening a new checking account is trouble over a past one. Your institution likely will run a ChexSystems report, which will reveal any old accounts you may have that are not in good standing. If you closed or abandoned an account with unpaid fees, for example, or failed to pay back an overdrawn account, the ChexSystems report will flag it, and you probably won't be able to open a new account until you make things right with the old one. This underscores the importance of avoiding overdrafts and paying all fees and penalties promptly if you do make a mistake. END
 TITLE: What Is a Checking Account? CONTENT: How Does Having a Bank Account Affect My Credit?\n------------------------------------------------\nThe status of your bank account doesn't affect your credit scores directly, but insufficient funds can lead to missed bill payments, and that can lower your scores.\nThat's why opening a checking account can actually help your credit scores if you manage it well. While improving your credit won't happen automatically—and is no guarantee just because you open a checking account—once you have a bank account, you can set up automatic bill pay with your credit card, utility, medical and other bills, which can ensure you never miss a payment. Automatic payments make it easier to manage credit card payments with a checking account, and also help to boost your credit while you're at it. Because payment history has the biggest influence on your credit scores, showing future creditors that you're able to manage your monthly payments on time will reassure them that you are financially responsible—and that may make them more likely to lend to you, whether via loan or credit card.\nOnce you've had your account for a while and have been paying your utility and telecom bills on time through your account's bill pay program, you could actually improve your credit. [](;k_id=_k_Cj0KCQjwhPfkBRD0ARIsAAcYycGhQm0Xodkvp3mlHsJWWEXqXx-U9pKXOOlfqWCfXpWd6FgC0Zb8K3gaAgsOEALw_wcB_k_&k_kw=kwd-585063777506&k_mt=e&pc=sem_exp_google&cc=sem_exp_google_ad_1651407997_65972645920_337084588681_kwd-585063777506_e_1t1__k_Cj0KCQjwhPfkBRD0ARIsAAcYycGhQm0Xodkvp3mlHsJWWEXqXx-U9pKXOOlfqWCfXpWd6FgC0Zb8K3gaAgsOEALw_wcB_k_&ref=boostbrand&awsearchcpc=1&gclid=Cj0KCQjwhPfkBRD0ARIsAAcYycGhQm0Xodkvp3mlHsJWWEXqXx-U9pKXOOlfqWCfXpWd6FgC0Zb8K3gaAgsOEALw_wcB)Experian Boost™† ™ is a program that counts your utility and telecom payments in your payment history, which can help you begin building a better FICO® Score☉ before you even take out a loan or credit card. END
 TITLE: What Is a Checking Account? CONTENT: Banking on a Second Chance\n--------------------------\nIf you've made major errors with a checking account in the past, you may have difficulty opening a standard checking account anywhere, even after you've settled outstanding payments on your old account. In that case, you may want to seek out a second-chance banking account.\nInstitutions that offer these accounts typically waive ChexSystems reports, and they may limit the services available on your checking account (excluding overdraft protection, for example). But a second-chance account will let you pay your bills and build up a positive ChexSystems record so that you can eventually open a full-service checking account. END
 TITLE: What Is a Checking Account? CONTENT: Checking Off a Financial Milestone\n----------------------------------\nOpening a checking account is an important step toward taking control of your financial life, establishing responsible bill payment habits, and demonstrating the money management skills lenders look for in potential borrowers. END
 TITLE: How to Pay for Emergency Home Repairs CONTENT: Average Cost of Emergency Home Repairs\n--------------------------------------\nThe cost of emergency home repairs can vary widely depending on the extent of the repair and how much materials and labor cost where you live. Here's how much some common home repairs cost on average, according to HomeAdvisor:\n*   Furnace replacement: $2,700 to $6,400\n*   Boiler replacement: $3,700 to $8,200\n*   Full HVAC replacement: $5,000 to $10,000\n*   Roof replacement: $5,000 to $12,000\n*   Water heater replacement: $500 to $1,800\n*   Burst water pipes: $1,000 to $4,000 END
 TITLE: How to Pay for Emergency Home Repairs CONTENT: By their nature, emergency home repairs need to be completed quickly, both to make your house habitable again and to prevent further damage to your property or belongings. You could save up over time to pay for a kitchen remodel, but letting a leaky roof or broken pipe sit for months while you squirrel away cash will only make matters worse. Here are some options for paying for emergency repairs:\n1.  **Emergency fund**: Ideally, you have an emergency fund set aside for just such a situation. If you do have to tap your emergency fund for home repairs, create a plan to replenish it as quickly as possible. Look for ways to reduce expenses and adjust your budget so you can build your fund back up to what you had before.\n2.  **Homeowners insurance**: If you have homeowners insurance, check your policy or contact your insurance company to see whether repair costs are covered. Insurance may even pay for you to live elsewhere while the work is being completed. Keep in mind that filing a homeowners insurance claim will eliminate any discounts on your policy you may have been receiving for being claim-free and could raise your premiums going forward, especially if you've filed other claims recently. If the repairs cost less than (or not much more than) your deductible, it's usually best to pay for them yourself and reserve homeowners insurance claims for major damage in order to avoid the potential premium hike.\n3.  **Home warranty**: When you buy a home, you may also be sold on a home warranty, which covers appliances and systems that break down. If you're in need of emergency repairs and have a home warranty in place, contact the company to see if your policy covers the issue in question. The warranty company will send a repair person to inspect the problem, for which you pay a small service fee. If the repair or replacement is covered, the warranty pays for it up to the limits of your coverage.\n4.  **Government aid**: Some federal, state and county government programs provide grants and loans for home repairs. Eligibility varies, but typically depends on the property, your age and your income. Contact your local or county government housing department or your state's Department of Housing and Urban Development (HUD) office to see if you qualify for any type of financial help. If a natural disaster damages your home, the Federal Emergency Management Agency (FEMA) may offer financial assistance for major repairs so you can live in your home again. This assistance may supplement or replace homeowners insurance.\n5.  **Personal loan**: If you're facing a costly repair and can't afford to cover it out of pocket, a personal loan might be the solution. Personal loans can be used for any purpose and are typically unsecured, which means you don't have to use your home or other property as collateral you risk losing. They usually feature higher interest rates than secured loans, but lower rates than credit cards.\n6.  **Credit card**: Credit cards can also be a good way to borrow to pay for home repairs. They're accessible immediately, so there's no delay in starting the project, and you might even earn rewards or cash back on the purchase. Credit cards typically carry high standard interest rates, but you can look for a card that offers an introductory 0% annual percentage rate (APR) on purchases for a period of time (potentially a year or more). Use it to cover the repairs and avoid paying interest if you pay off the balance before the introductory period. Avoid maxing out a credit card to pay for home repairs, however. Maintaining a high credit utilization ratio, especially one that's above 30%, can quickly result in damaged credit scores.\n7.  **Home equity loan**: If you have equity in your home and need to cover a repair of $10,000 or more, you may qualify for a home equity loan. The loan uses your equity as collateral, so interest rates are generally lower than for credit cards. You can typically borrow between 75% and 85% of your equity as a lump sum and repay it in fixed monthly installments over five to 30 years. Regular payments make it easier to factor into your budget and allow you to spread the cost over time. However, borrowing against your equity puts your home at risk if you can't pay back the loan. It also reduces the equity in your home, so you could wind up owing more on your mortgage than your home is worth if its value suddenly drops.\n8.  **Home equity line of credit (HELOC)**: If you're not yet sure of the full extent (and full cost) of the repairs, consider a home equity line of credit (HELOC). A HELOC generally allows borrowing 60% to 85% of your equity in the form of a credit line that you can draw on as needed, typically for a period of up to 10 years. During that time, you make interest-only payments; when the HELOC closes, you usually have 20 years to repay the balance. A HELOC has the same risks as a home equity loan, and because interest rates are typically variable, your payments could increase unexpectedly.\n9.  **Family or friends**: Family members or close friends may be willing to extend a loan to pay for your home repairs. If you borrow from someone you know, draw up a loan contract and pay the loan back just as you would a loan from any other source—potentially with interest. Otherwise, you could damage your relationship, and repairing it might be far more difficult than fixing a leaky roof. END
 TITLE: How to Pay for Emergency Home Repairs CONTENT: Be Prepared for Financial Emergencies\n-------------------------------------\nGetting a loan for emergency home repairs and paying it back on time and in full can help to boost your credit score. Conversely, missing a payment or failing to repay the loan could damage your credit score. Before using a loan, line of credit or credit card for emergency home repairs, make sure you have a plan to repay the money.\nApplying for a loan or line of credit results in a hard inquiry on your credit report, which can temporarily ding your credit score. To minimize impact on your credit, submit all loan applications within a two-week period. You can get your credit report from all three credit bureaus through AnnualCreditReport.com. You can also check your credit report and FICO® Score☉ for free directly through Experian to make sure your credit is in good shape before you apply for a loan or credit card. END
 TITLE: How Often Is My Credit Score Updated? CONTENT: Your Score Can Change When Your Credit Report Is Updated\n--------------------------------------------------------\nCredit scores are calculated by performing complex statistical analysis on data compiled in your credit reports at the national credit bureaus—Experian, TransUnion and Equifax. The bureaus update your credit reports to reflect new information about your credit usage, including:\n*   Payments you've made (and whether they were made on time)\n*   Changes in your credit card balances\n*   Your total outstanding debt\n*   New credit applications you've made or new loan or credit accounts you've opened\n*   If you use Experian Boost™† , your credit scores based on Experian data can also reflect your utility and cellphone payments.\nThe credit bureaus receive information about your activity in reports from the credit card issuers, lenders and potentially other companies with whom you have financial relationships. END
 TITLE: How Often Is My Credit Score Updated? CONTENT: How Often Do Creditors Report to Bureaus?\n-----------------------------------------\nEach creditor reports to the bureaus according to its own schedule—typically every 30 to 45 days. Reports are seldom made to all three bureaus at the same time; for example, a given creditor might send a report to Experian this week but not get it to TransUnion until next week (or vice-versa).\nEvery new report from a creditor brings potential adjustments to your credit report, which are reflected in changes in your credit scores. Depending on how many credit accounts you have, it's possible for your credit score to change weekly or even daily. (And depending on the time of day your report happens to get updated, differences in scores taken just an hour apart could reflect changes in credit file data.)\nExactly how much your score will change with each update depends on how much your credit card balances fluctuate, how often you apply for and open new accounts, and whether you're keeping up with bill payments. Some score differences are also attributable to the specific credit scoring system used to calculate the score—FICO® Score☉ or VantageScore®, for instance—and even which version of the specific scoring system is used. END
 TITLE: How Often Is My Credit Score Updated? CONTENT: Factors to Focus On to Improve Your Credit Score\n------------------------------------------------\nIf you were to check your credit score every day, no matter which credit scoring system was used, it would be normal to see the score move up and down a bit. Rather than worrying about these small fluctuations, your focus should be on long-term score improvement.\nFortunately, no matter which scoring system is used, you can promote credit score improvements by cultivating good habits around a set of factors that influence all credit scores.\nThose factors are:\n1.  **Payment history**: Making timely payments is the most important contributor to any credit score, and no single event has a greater negative impact on your score than a late payment. (Bankruptcy has a longer-lasting impact on credit scores, but it's very rare for anyone to file bankruptcy before accumulating one or more late payments that have already lowered their credit scores considerably.) Payment history accounts for 35% of your FICO® Score.\n2.  **Credit utilization**: Your credit utilization ratio, the percentage of your credit card borrowing limits represented by your outstanding balances, accounts for about 30% of your FICO® Score. Using more than 30% of your available credit can have a negative impact on your credit scores.\n3.  **Average age of your credit accounts**: You can't do much to influence this factor, but over time, as long as you keep up with your bill payments, your credit scores will tend to improve. Closing credit card accounts can eventually reduce the age of accounts, so think twice before closing older accounts, even if you don't use them often. The age of your credit accounts is responsible for about 15% of your FICO® Score.\n4.  **Credit mix**: Credit scoring models consider how many credit accounts you have. A mix of loan types—including installment loans and revolving credit accounts—is seen as a sign of solid debt management, and tends to promote credit score improvement. Credit mix accounts for about 10% of your FICO® Score.\n5.  **New credit activity**: Credit checks related to new credit applications, known as hard inquiries, typically have a short-term negative impact on credit scores, as does opening new loans or credit accounts. As long as you keep up with your bills, your scores typically rebound from these dips within a few months. New credit activity is responsible for about 10% of your FICO® Score.\nContinual updates to your credit report can cause frequent credit score changes, but day-to-day and week-to-week fluctuations are less important than long-term improvements you can achieve when you develop good credit habits. END
 TITLE: Why Are My Home Insurance Quotes So High? CONTENT: What Factors Determine a Home Insurance Quote?\n----------------------------------------------\nA litany of factors determine a home insurance quote, and insurers calculate their prices differently. These are some of the factors that play into your insurance premium:\n*   **Your credit**: If you live in a state where it's allowed, your insurer can check your credit when you apply for homeowners insurance. They may refer to your credit-based insurance score, which uses your financial history to help insurers determine your likelihood of filing a claim. The worse shape your credit is in, the higher your home insurance quote can be. Typically, though, your credit won't be the sole factor determining your rates. So if your rates are high, there's likely more at play.\n*   **Your deductible**: Like other types of insurance, the amount of your deductible plays a role in determining your premium. In general, asking your insurer for a higher deductible can help you nab a lower rate. However, the consequence of doing so is that you'll be on the hook for a larger portion of upfront expenses when you file a claim, which could put you in a financial bind.\n*   **Your home's age and materials**: Home insurance is partly based on your home's construction materials, features, age, compliance with current building codes and other factors, according to the Insurance Information Institute. Your insurance policy covers repairs to the home if it's damaged, and those costs can vary significantly depending on when and how a home was built. If your home was built with unique features or pricey materials that would be expensive to replace, your home insurance premium may be higher.\n*   **Your location**: The physical location of a home can impact home insurance quotes in a few ways. Homes that are closer to a coast or in areas prone to natural disasters are riskier and usually command higher premiums, while homes in low-risk areas may score lower premiums. Homeowners insurance also tends to be more expensive in densely populated urban areas, and can be influenced by state and local regulations.\n*   **Extra features**: Insurance is all about risk, so additional features such as a swimming pool or hot tub can increase rates since they might add risk and require greater liability coverage.\n*   **The value of your belongings**: Homeowners insurance doesn't just cover your home itself, but the belongings within it. If you own many valuable items you want to protect, you may have to pay more for higher coverage, or even add an additional policy if your standard coverage isn't enough. This helps make sure you'll receive enough compensation to replace any belongings that are destroyed or stolen, but increased coverage can easily increase the cost of your premium. END
 TITLE: Why Are My Home Insurance Quotes So High? CONTENT: How to Save on Homeowners Insurance\n-----------------------------------\nWhile the expense of homeowners insurance might be unavoidable, there are some ways to bring down the price of your quote.\n*   **Compare rates.** To land the lowest rate, obtain quotes for comparable coverage from several insurers. Getting a quote doesn't require commitment. It may be worthwhile to compare rates from a few types of insurers, such as online insurance companies and traditional insurers you already do business with.\n*   **Raise your deductible.** When your policy deductible is higher, you'll generally pay a lower ongoing premium in exchange. If your premium quotes are too high, consider selecting a policy with a higher deductible. Just be aware that the consequence is you'll have to pay more money out-of-pocket anytime you file a claim. If you go that route, ensure you have savings so you're covered if you need to pay a larger fee upfront for repairs before your policy kicks in.\n*   **Improve your credit****.** Because insurers in many states review your credit when evaluating your application and setting your premium, taking steps to improve your credit score can help you secure a cheaper policy. Bad credit won't necessarily disqualify you from getting approved for home insurance coverage, but it can result in a higher premium than you'd otherwise pay.\n*   **Bundle your insurance policies.** Many insurance companies offer multi-policy discounts if you use them for other types of insurance, which could knock off a chunk of your bill. Progressive, for example, says customers who bundle home and auto insurance policies save an average of 12%.\n*   **Ask about other discounts.** Some insurers offer additional discounts for various reasons. Ways to qualify for a discount include: if you are over 55 and retired, if you work for a certain company, if you have a home security system or if you update your plumbing or electrical system. END
 TITLE: Why Are My Home Insurance Quotes So High? CONTENT: Optional Home Insurance Policies to Consider\n--------------------------------------------\nStandard home insurance covers damage from wind, hail, lightning or fire, though floods and earthquakes typically require their own policies. Here's what you need to know about these two types of insurance:\n*   **Earthquake insurance**: A typical homeowners insurance policy doesn't cover earthquakes, so if you live on the West Coast or another area prone to quakes, you may want to purchase optional earthquake insurance. It will be an additional cost on top of your existing policy, which can be hefty if you live in a high-risk area. In evaluating whether to get it, you'll need to consider your budget, how likely your area is to experience an earthquake and your tolerance for risk. While earthquakes aren't likely in some areas, keep in mind that if your house or belongings are damaged in one, you'll be on the hook for the cost of repairs unless you have an earthquake insurance policy.\n*   **Flood insurance**: Flood damage also isn't covered by standard home insurance policies. If you live in a high-risk area, you may be required to have a flood insurance policy, according to the Federal Emergency Management Agency. But even those in areas of moderate or low risk should consider getting optional flood insurance since even a minor flood can cause massive and expensive damage inside a home. END
 TITLE: Why Are My Home Insurance Quotes So High? CONTENT: Boost Your Credit Before You Apply\n----------------------------------\nAs we've noted, the shape of your credit could be one of the many factors that helps determine your home insurance quote, and those with stronger credit may benefit from lower premiums. If you plan to apply for homeowners insurance soon, make sure you understand where your credit stands by getting a free copy of your credit reports through AnnualCreditReport.com.\nYou can also get your free Experian credit report and FICO® Score☉ directly through Experian. Take some time to review the information in your credit reports, and gain an understanding of how it's affecting your scores. If necessary, take steps to improve your scores, including paying all your bills on time and keeping credit card balances low. You might also consider signing up for free credit monitoring, which will help you keep a closer eye on your reports and scores and be alerted to any changes. END
 TITLE: Step-by-Step Checklist for Buying Home Insurance CONTENT: Know What Homeowners Insurance Covers—and Doesn't\n-------------------------------------------------\nIt's important to understand what homeowners insurance covers—and what it doesn't. Standard policies generally include the following types of coverage.\n*   **Liability protection\/no-fault medical coverage** pays for legal costs and medical care if a visitor is hurt on your property; it also covers damages your family members cause to another person or their property.\n*   **Dwelling coverage** pays repair or rebuilding costs if your home is damaged or destroyed by a covered peril.\n    *   Covered perils usually include fire or smoke, wind (including hurricanes and tornadoes), hail or lightning, vandalism, theft and certain types of water damage.\n    *   Additional structures, such as garages and fences, are usually covered as well.\n*   **Personal property coverage** pays to replace contents of your house that are stolen or damaged by a covered incident. It may also cover personal possessions outside the home, such as in your car or storage space.\n*   **Loss of use\/additional living expenses (ALE)** covers the cost of living elsewhere while your home is being rebuilt or repaired, including rent, hotel costs and meals.\nHomeowners insurance generally doesn't cover damage from floods, earthquakes, sinkholes or water damage from backed-up sewers, septic tanks, sump pumps or drains. END
 TITLE: Step-by-Step Checklist for Buying Home Insurance CONTENT: Decide How Much Homeowners Insurance You Need\n---------------------------------------------\nThe amount of coverage you need to carry is based on the cost of replacing or repairing the structure. This is different from your home's price or current value, which includes your land as well as the structure.\n*   Estimate rebuilding costs based on your home's square footage, local costs for materials and labor, and your home's materials. Local contractors, real estate agents or insurance agents can help you estimate the cost of rebuilding\n*   Conduct a home inventory to estimate the value of your personal property.\n    *   Go through your house and estimate what it would cost to replace everything in each room. Record a video including images and descriptions of items, such as brand names and year purchased.\n    *   Include belongings kept in outbuildings on your property or in an off-site storage facility (some homeowners' insurance policies cover off-site property too).\n*   Look at your budget to see how much you can afford to spend on premiums. Try to find a balance between the coverage you want and the amount you can afford. END
 TITLE: Step-by-Step Checklist for Buying Home Insurance CONTENT: Homeowners Insurance Extras to Consider\n---------------------------------------\nYou may need or want extra insurance to provide coverage beyond a standard policy's limits.\n**Liability extras**:\n*   If you own property or assets worth more than the limits of your homeowners insurance, _umbrella insurance_ can provide extra coverage in increments of $1 million.\n*   Homes with dogs, swimming pools, jacuzzis, trampolines or other features likely to cause accidents may need additional liability insurance.\n**Personal property extra**:\n*   Standard policies pay the amount an item is currently worth; this may not be enough to replace the item with a current equivalent.\n*   Consider _replacement cost coverage_, which pays to replace appliances, electronics and other personal property with equivalent models.\n*   Standard home insurance typically limits coverage for items such as jewelry, fine art, electronics and collectibles.\n*   If you own valuables that exceed these limits, consider buying a floater or endorsement for the items' full value.\n**Dwelling extras**:\n*   If you have an older home, consider _ordinance or law coverage_, which pays to rebuild your home to current building codes.\n*   After natural disasters, rebuilding costs sometimes skyrocket due to labor and materials shortages.\n    *   _Extended replacement coverage_ adds 20% to 25% above your dwelling coverage limits to cover these costs.\n    *   _Guaranteed replacement coverage_ covers the cost of rebuilding no matter how much it exceeds your dwelling coverage limits.\n*   _Inflation coverage_ automatically increases your coverage annually to account for inflation.\n*   Some policies limit the dollar amount of ALE coverage or how long it can last. Consider extended ALE coverage if your region is prone to disasters.\n**Specialized insurance for disasters standard home insurance doesn't cover**:\n*   _Flood insurance_: Use FEMA's flood map to see if you're in a flood zone and what your risk level is. If you're at risk, your mortgage lender may require flood insurance; even if they don't, it can be a good idea.\n*   _Earthquake insurance_: If you're in earthquake country, you'll want to carry earthquake insurance. You can get this from private insurance companies or, in California, through the California Earthquake Authority.\n*   _Sinkhole insurance_: If sinkholes are common in your area, see if you can purchase this coverage as an endorsement or additional policy.\n*   _Sewer, sump pump, septic tank_ or _drain backup insurance_: Any home can be at risk for water damage from backups. Coverage is available as an endorsement or additional policy and is generally very affordable. END
 TITLE: Step-by-Step Checklist for Buying Home Insurance CONTENT: Choose a Homeowners Insurance Company\n-------------------------------------\nYou can look for homeowners insurance online at insurance company websites or use an insurance comparison site to evaluate different providers.\n*   Start with the insurance companies you already do business with and aim to get quotes from three to five companies at least.\n*   Find companies by reading ratings and reviews online and asking friends and family for recommendations.\n*   If you want more guidance than a website can provide, talk to an insurance agent.\n    *   Captive insurance agents sell insurance from one provider.\n    *   Independent insurance agents sell policies from a variety of carriers and can help you shop around for the best insurance.\n*   Make sure to compare the same type and amount of coverage from one company to another.\n*   Check ratings of insurers' financial stability from AM Best, Moody's and Standard & Poor's.\n*   Look for consumer complaints about insurers at the National Association of Insurance Commissioners website.\n*   Read consumer reviews of companies to see what type of customer service they offer. You want a company that will be helpful and responsive should you have a claim, so don't buy on price alone. END
 TITLE: Step-by-Step Checklist for Buying Home Insurance CONTENT: Look for Ways to Save Money on Homeowners Insurance\n---------------------------------------------------\nFactors in the cost of homeowners insurance include your home's location, condition and materials, and past claims you and previous owners have filed for the home. To lower your premiums:\n*   **Maintain good credit.**\n    *   If you have poor credit, insurance providers in many states may charge you more.\n    *   Before applying for homeowners insurance, check your credit report and credit score, and take steps to improve your score if necessary.\n*   **Increase your deductible** (the amount you pay before the insurance company pays out for your claim).\n    *   Homeowners insurance deductibles can be a dollar amount (typically starting at $500) or a percentage of the claim amount.\n    *   Separate insurance for flood, earthquake and other disasters typically has its own deductibles, so make sure you can afford a higher deductible before making a change. In earthquake-prone states, minimum deductibles are often 10% or more.\n*   **Bundle insurance policies.** Buying more than one policy from the same company generally earns a discount.\n*   **Investigate discounts.** Different insurers may offer discounts for:\n    *   Buying insurance online, setting up autopay or paying your annual premium in full.\n    *   Installing safety or security devices such as storm windows, burglar alarms or smoke detectors.\n    *   Updating or replacing old roofs or heating, plumbing or electrical systems that could pose risks. END
 TITLE: What Is Not Covered by Homeowners Insurance? CONTENT: What Is Not Covered Under a Homeowners Insurance Policy\n-------------------------------------------------------\nWhen buying homeowners insurance, it's important to understand exactly it includes—and what it doesn't. Standard homeowners insurance generally doesn't cover the following perils:\n*   **Earthquakes, floods, sinkholes and landslides**: Home fires or burglaries can happen anywhere, but some risks are more prevalent in certain parts of the country. For example, Florida is prone to sinkholes, while earthquakes are common in California. Since many homeowners don't need coverage for these location-specific perils, they aren't part of standard homeowners insurance policies.\n*   **Sewer backups, septic tank backups, drain backups or sump pump failures**: Any one of these unpleasant situations can cause thousands of dollars in water damage to your home and belongings. Unfortunately, that damage usually isn't covered by homeowners insurance.\n*   **Maintenance issues**: Normal wear and tear on your home, or problems caused by your failure to maintain your home, aren't covered by homeowners insurance. If a hurricane rips the roof off your house, homeowners insurance will cover it. If your 30-year-old roof develops a leak on its own, however, insurance won't typically cover it. Infestation by animals or insects, such as termites, is not covered either.\n*   **Dog attacks**: Fluffy wouldn't hurt a flea … or would he? Homeowners insurance may or may not cover you if your dog bites someone on your property, so it's important to verify the rules of your specific policy. Some insurance companies cover liability protection and medical costs for dog bites. Others won't insure homeowners who own breeds the insurer considers dangerous (pit bulls and Rottweilers are common examples) or will make you sign a waiver releasing them from liability for dog attacks.\nStandard homeowners insurance doesn't cover damage you intentionally cause to your home or damage resulting from war, government seizure or destruction of your property, nuclear accidents or pollution. END
 TITLE: What Is Not Covered by Homeowners Insurance? CONTENT: What Is Covered Under a Homeowners Insurance Policy\n---------------------------------------------------\nYou can expect a standard homeowners insurance policy to cover the following:\n*   **Liability protection and no-fault medical costs**: If a guest or visitor is injured on your property, homeowners insurance can cover legal fees and settlement costs arising from a lawsuit, as well as medical care for the injured party. It could also cover any damage that your family members cause to another person or their property, such as your daughter throwing a football through a neighbor's window.\n*   **The structure of your home**: Structure or dwelling coverage pays to repair or replace your home if it's damaged or destroyed by fire or smoke, wind (including hurricanes and tornadoes), hail or lightning, vandalism or theft. Homeowners insurance generally also covers water damage, but there are usually very specific definitions of what type of water damage is or isn't covered. For example, flooding from a burst pipe is typically covered, but flooding from a sewer backup is not. Most homeowners insurance also covers detached structures on your property, such as garages, gazebos, tool sheds, walls and fences.\n*   **Personal property stolen or damaged by a covered incident**: Homeowners insurance covers loss of or damage to the property in your home, such as furniture, clothing, housewares and electronics. It may also cover personal possessions you keep in your car, storage space or other location outside the home. There are, however, usually limitations on coverage for items such as jewelry, furs, fine art and computers. If you need additional coverage, you'll have to buy a \"floater\" policy for those items.\n*   **Loss of use and additional living expenses**: Homeowners insurance could pay for you to live elsewhere while your home is being repaired after a covered incident. That includes the cost of a hotel, apartment or rental home, meals and any other expenses resulting from being displaced. There are generally limits on either the dollar amount or time frame of this coverage.\nDo you live near a volcano or an airport? Probably not, but if so, you can rest easy knowing that homeowners insurance usually covers damage from volcanic eruptions and airplanes. It also generally covers your property during incidents of riot or civil unrest, according to the Insurance Information Institute. END
 TITLE: What Is Not Covered by Homeowners Insurance? CONTENT: Optional Insurance Policies Not Covered by Homeowners Insurance\n---------------------------------------------------------------\nAlthough there are a few things a homeowners insurance policy doesn't cover, you can still get coverage for most of them—you'll just have to buy it separately. Additional policies you may want for your home include:\n*   **Flood insurance**: If your home is in a flood zone, your mortgage lender may insist on flood insurance. Even if flood insurance isn't required, purchasing it can help protect your home. Homeowners are five times as likely to be affected by a flood as by a fire, according to the Federal Emergency Management Administration (FEMA). Use FEMA's flood map to see if you're in a flood zone and, if so, whether FEMA categorizes your area as low, moderate or high risk. FEMA's National Flood Insurance Program (NFIP) offers flood insurance of up to $250,000 for structures and $100,000 for personal property. If you need more coverage, investigate non-NFIP flood insurance from a private insurer.\n*   **Earthquake insurance**: Earthquake insurance covers your dwelling, personal property, loss of use and the cost of rebuilding your home to current building code standards. It usually covers damage from landslides too; they're considered \"earth-moving\" events. Deductibles for earthquake insurance can be steep—up to 25% of the coverage limit—but if you live in earthquake country, it's better to have some coverage than nothing at all. Earthquake insurance is available from private insurance companies or, if you live in California, through the publicly managed California Earthquake Authority (CEA).\n*   **Sinkhole insurance**: Sinkholes differ from other perils because they not only damage your home but also destroy the land under it, and land isn't covered by homeowners insurance. Still, some states require insurers to offer sinkhole insurance as an endorsement or additional policy. Although the coverage is often very expensive, it can be worth the cost if sinkholes are common where you live.\n*   **Sewer, sump pump, septic tank or drain backup insurance**: This coverage can be purchased as a separate policy or an endorsement to your homeowners policy. The cost is generally reasonable. END
 TITLE: What Is Not Covered by Homeowners Insurance? CONTENT: How to Save on Home Insurance\n-----------------------------\nDepending on where you live, you may need or want more homeowners coverage than the standard policy provides. Fortunately, there are plenty of ways to protect your home and still keep costs down.\n*   **Improve your credit score.** In many states, a good credit score may help you qualify for lower insurance rates. That's because some insurance companies check your credit and use credit-based insurance scores—a special type of insurance score—to assess how likely you are to file a claim. Before you apply for homeowners insurance, check your credit report for any negative information, such as delinquent accounts. Your credit reports from all three major credit bureaus are available for free through AnnualCreditReport.com. Your credit report and scores can be had for free directly through Experian as well. You can help improve your credit score by paying all your bills on time, reducing your debt and avoiding applications for new credit.\n*   **Increase your deductible.** The deductible is the amount you'll pay before the insurance company pays out your claim. Homeowners insurance deductibles may be either a dollar amount (typically starting at $500) or a percentage of the total claim amount (such as 2%). Raising your deductible generally reduces your premiums; however, be sure you can handle the additional cost should you have to file a claim.\n*   **Shop around.** You can research and get quotes for homeowners insurance online or by contacting an insurance agent. You may get more options by working with an independent agent who represents several insurance carriers, not just one. Compare at least three companies' quotes for the same amount and type of coverage, with the same deductible, before making a decision.\n*   **Ask about discounts.** There are plenty of ways to get policy discounts; investigate what each insurer has to offer. You'll typically get a discount for \"bundling\"—that is, buying more than one type of insurance policy from the same company. Some insurers offer discounts for paying your premium in full upfront, setting up autopay or buying insurance online. Employers and membership organizations often offer discounts for employees or members who use certain insurance providers.\n*   **Protect your home.** Taking steps to safeguard your home can lower your insurance premiums as it reduces your risk. For example, you might receive discounts for installing smoke detectors or storm windows; replacing outdated heating, plumbing or electrical systems; or installing safety and security features such as burglar alarms, smoke detectors or a fence around your swimming pool.\nProtect Your Investment With Home Insurance\n-------------------------------------------\nLike any type of insurance, homeowners insurance can be complicated. Read your policy carefully to make sure it covers the biggest risks that might affect your home. If you're not sure about something, ask your insurance company for clarification.\nYour home is your biggest investment, so don't skimp on protecting it. Maintaining a good credit score can help you qualify for lower premiums so you can get the coverage you need and still keep a roof over your head. END
 TITLE: What Is Not Covered by Homeowners Insurance? CONTENT: Protect Your Investment With Home Insurance\n-------------------------------------------\nLike any type of insurance, homeowners insurance can be complicated. Read your policy carefully to make sure it covers the biggest risks that might affect your home. If you're not sure about something, ask your insurance company for clarification.\nYour home is your biggest investment, so don't skimp on protecting it. Maintaining a good credit score can help you qualify for lower premiums so you can get the coverage you need and still keep a roof over your head. END
 TITLE: What Does Flood Insurance Cover? CONTENT: You don't have to live near a dam or a major river to be at high risk of being affected by a flood. Floods, by definition, affect an area of land that would usually be dry and out of the way of the normal flow of water. High flood risk areas are often known for extreme rain and snow, could be densely populated with limited drainage, are near a body of water or reside in a geographic low spot.\nHere's what you can generally expect flood insurance to cover:\n*   Loss from waves, severe storms and flash floods\n*   Damage to appliances, electronics and other personal property inside your home\n*   Repair costs for the walls and the foundation of your home\nNote that you'll need to buy separate policies to protect the physical structure of your home and your belongings inside the home. Additionally, a flood insurance policy may not protect you against every loss you incur due to a flood. Here are some of the circumstances and expenses that might not be covered:\n*   Damage caused by shifting soil\n*   Property destroyed outside of your home, such as trees, swimming pools, vehicles and septic systems\n*   Relocation expenses during your home repair\n*   Sewage backup that isn't directly caused by flooding\n*   Destroyed documents or money END
 TITLE: What Does Flood Insurance Cover? CONTENT: How Do You Know if You Need Flood Insurance?\n--------------------------------------------\nIf you live in a high-flood-risk area and you take out a mortgage through a government-backed lender, you'll be required to carry flood insurance. Other lenders may require homeowners to carry flood insurance too.\nTo see if you live in a high-risk area, you can search your address using the FEMA flood map. But even if you don't live in a flood-prone region, your home could be at risk. Uncontrollable factors like a poor drainage system, a broken water main, a major storm or construction in the neighborhood could affect any home.\nAccording to FEMA, just one inch of water could cause $25,000 worth of damage, which means additional coverage could prevent a financial catastrophe if you're ever affected by flooding. END
 TITLE: What Does Flood Insurance Cover? CONTENT: How Much Does Flood Insurance Cost?\n-----------------------------------\nLike premiums for homeowners insurance, flood insurance premiums vary based on a handful of factors that may be out of your control. Some of those factors include whether you live in a flood zone, the elevation of your property, and the type and amount of coverage you need.\nThere's no set price, but policies on average tend to cost around $700 a year. To get quotes or purchase flood insurance, you can contact the company where you get your home or auto insurance, or you search through the National Flood Insurance Program (NFIP). END
 TITLE: What Does Flood Insurance Cover? CONTENT: How to Save Money on Flood Insurance\n------------------------------------\nSome factors that determine your premium will be out of your control, but you can also take measures to reduce your policy cost. In addition to shopping around, here are some of the other ways you can bring down the cost of flood insurance:\n*   **Reduce your risk factors.** Your insurer may offer you lower premiums if you reduce the likelihood of damage. One of the ways you can do this by moving heating and cooling systems out of flood-prone spaces, like your basement, or placing them on elevated platforms. Conduct additional research and talk to an expert or your insurer about other flood mitigation modifications you can make to your home or property that could help reduce your risk.\n*   **Raise your deductible.** By electing to increase your potential out-of-pocket cost, you can reduce your monthly premium. Just be aware that this option will mean paying more before your insurance kicks in to cover the damage your property has sustained.\n*   **Improve your credit.** Depending on where you live, your credit score can affect your insurance premium. You could reduce the cost of flood insurance by reviewing your credit file and working to improve your score. Rules vary by state, however, and some insurers won't consider your credit as part of your rate calculation.\n*   **Lock in a low rate.** If you don't live in a high-risk zone, you could save money by buying insurance now and locking in a low rate. If a change in your area makes it higher risk, you could avoid the eventual rate increase.\n*   **See if you qualify for a discount.** If you live in one of the roughly 1,000 communities that participates in FEMA's Community Rating System (CRS), you may qualify for discounts on your premium. You could also encourage officials in your community to participate. Becoming a CRS participant could help reduce flood risk factors for your home and help bring down your insurance rate. END
 TITLE: What Does Flood Insurance Cover? CONTENT: Reducing Your Liabilities\n-------------------------\nThere's more to becoming financially stable and maintaining good credit than simply having good money habits. Monitoring your credit, reviewing your budget and saving for emergencies are all great ways to keep your financial life in good shape, but they're only part of the picture.\nAnother important piece of financial security is protecting yourself against liability and losses. One of the best ways to do that is to maintain an adequate level of insurance coverage.\nIf you haven't reviewed your insurance policies and coverage amounts in more than a year, take some time to review and update them. Be sure to always maintain proper medical, auto and home insurance coverage, including flood insurance, to help you and your family stay financially secure should something go wrong. END
 TITLE: Do You Have to Have Homeowners Insurance? CONTENT: Is Homeowners Insurance Mandatory?\n----------------------------------\nHomeowners insurance helps you recover from acts of peril that would otherwise wreak havoc on your pocketbook, such as roof damage caused by a storm, belongings being stolen from your home or medical bills that result when someone is hurt on your property. There is no federal or state law that requires homeowners to have homeowners insurance, however the lender you work with will almost certainly require it the entire time your home is covered by a mortgage loan.\nWhile money from any claim payouts will go to you, the homeowner, the policy also works to the benefit of the lender. Most crucial to the lender is that you're able to pay for necessary home repairs. If you didn't have insurance and the expenses were outside your means, the property might fall to ruin and rapidly lose value. If a home's market value falls below the value of the loan, the lender is put in a negative financial position.\nTherefore, the lender will not just expect you to have a homeowners insurance policy when you buy the home, but will keep tabs on your payments. If you fall behind, the insurance company will alert the lender, which will then contact you. At that stage you'll have two options: Get back on track with your current insurance company or get insured with a new company. If you don't, the lender has the right to foreclose on the property.\nBe aware that homeowners insurance is different from mortgage insurance. While homeowners insurance is designed to cover the costs of what can happen in and around your property, mortgage insurance protects the lender if you were to stop sending your mortgage payments. If you default on your loan, the mortgage insurer pays the lender. Not every buyer needs mortgage insurance, though. It is usually only necessary when your down payment is less than 20% of the purchase price. When you reach that figure, you can usually drop it. END
 TITLE: Do You Have to Have Homeowners Insurance? CONTENT: What Does Homeowners Insurance Cover?\n-------------------------------------\nWhat homeowners insurance does and doesn't cover depends on the policy, but in general, it will offer the following types of coverage:\n*   **Home structure**: To pay repairs and replacement costs if the property is damaged or destroyed by fire and smoke, wind, hail or lightning, water, vandalism or theft.\n*   **Liability protection**: To protect you legally and financially if someone is hurt on your property.\n*   **Personal belongings**: For items that are stolen or damaged (up to a certain value limit).\n*   **Alternative living expenses**: To pay for the cost of living somewhere other than your home if your property has been damaged by an insured event.\nThere are plenty of exclusions to what most homeowners insurance policies will cover. These frequently include:\n*   **Damage caused by floods and earthquakes**: If you want those covered, you'll usually need a separate policy.\n*   **Routine wear and tear**: Homeowners insurance won't pay out for things like interior and exterior painting, electrical issues and broken appliances.\n*   **Losses due to certain other reasons**: Losses due to war, government seizure or destruction, infestation, pollution and any intentional damage is typically not covered. END
 TITLE: Do You Have to Have Homeowners Insurance? CONTENT: How Much Does Homeowners Insurance Cost?\n----------------------------------------\nThere are few major factors that determine the cost of homeowners insurance policy. The most weighty is the state you live in. According to a study published last year by the National Association of Insurance Commissioners, the average premium cost for the most common type of homeowners insurance in 2017 was $1,211. However, by state, the highest average for a policy in 2020 is Louisiana, at $1,968. Oregon, on the other hand, has the least expensive coverage, averaging just $677.\nYour credit-based insurance score may also be a consideration. These scores, such as Attract™ scores developed by LexisNexis® Risk Solutions and FICO's credit-based insurance scoring model, are designed to predict the likelihood that you will file an insurance claim. Credit-based insurance scores, like traditional credit scores, focus on your past activity, such as payment history, credit utilization ratio and delinquent accounts. Using such scores to adjust the cost of a policy is legal at the federal level, but some states restrict their use for homeowners insurance policies. Currently, these include California, Maryland, Massachusetts and Oregon.\nThe deductible is another factor that can affect your premium. The higher it is, the lower your premium will be. Most insurers offer a minimum deductible of $500 or $1,000. A higher deductible may make for more affordable payments, but you risk having to come up with more cash out of pocket before the insurer pays out if you file a claim.\nBecause homeowners insurance can be a major line item in your budget, take steps to reduce the cost without sacrificing proper coverage:\n*   **Improve your credit reports and scores****.** If you live in a state where insurance policies can be credit-contingent, review your credit reports before pursuing a policy. If your report contains accounts in collections, past-due accounts or excess revolving debt, that negative information may be dragging down your insurance scores. Take action to get caught up on your payments, reduce your debt and pledge to make all payments on time going forward.\n*   **Raise your deductible.** Because low deductibles usually result in high insurance premiums, consider raising that threshold if you feel comfortable handling a large deductible.\n*   **Shop around.** Many companies provide homeowners insurance, so be sure to get several quotes before deciding on one.\n*   **Seek discounts.** Insurers typically offer policy discounts if you pay your annual premium in full up front, or for bundling it with other policies, like auto insurance.\nA homeowners insurance policy might be required, but it's something you have some control over. Go for the most comprehensive policy you need and can afford, and then review the policy with your insurer annually so you know you're getting the best for your current situation. Before you do, obtain a free copy of your credit report and FICO® Score☉ from Experian. If your creditworthiness has improved, you'll want to point it out, especially if the policy you have was based on your previous credit rating. END
 TITLE: A Homeowner’s Guide to Earthquake Insurance CONTENT: How Does Earthquake Insurance Work?\n-----------------------------------\nMost homeowners insurance policies do not cover damages caused by earthquakes. If you live in an area prone to these natural disasters, you can give yourself some peace of mind by purchasing additional earthquake insurance.\nThese plans work like most insurance policies. You pay annual premiums to keep the policy active. And if you have to file a claim, you will have to first pay the deductible before the policy kicks in to cover the damages.\nLike other types of insurance, your earthquake insurance policy could also come with certain limits, including coverage payout limits and restrictions on what is covered. The limits on your coverage, the amount of your deductible and the cost of the insurance premium are all important factors to consider when deciding if the additional coverage would make financial sense. END
 TITLE: A Homeowner’s Guide to Earthquake Insurance CONTENT: What Is and Isn't Covered With Earthquake Insurance\n---------------------------------------------------\nWhen shopping for an earthquake insurance policy, make sure you understand what the coverage includes. Knowing the ins and outs of an insurance policy before you agree to the coverage is important, as a blind spot in your policy can leave you without recourse.\nEarthquake insurance policies include the following types of coverage:\n*   **Dwelling**: This covers repairs to your home and attached structures to fix damage caused by the earthquake\n*   **Personal property**: Personal belongings and valuables in your home can be protected by earthquake insurance. This type of coverage may be offered as an optional policy, and subject to its own limits.\n*   **Loss of use**: Living expenses can easily mount if your home is uninhabitable following a quake and you have to relocate while repairs are made. Loss of use coverage kicks in to cover things like hotel stays and related costs.\n*   **Renovations or code upgrades**: Coverage of this type helps pay for repairs or modifications following an earthquake needed to bring your home up to current local building codes.\nEarthquake insurance typically does not cover the following:\n*   Fire and water damage resulting from gas or water pipes that rupture in an earthquake. This may be covered under your homeowners policy, however.\n*   Vehicle damage. While not covered by earthquake insurance, this may be covered by your comprehensive auto insurance if you carry it.\nBefore you select a plan, ask the provider to verify policy details to ensure you get the coverages you need. Also, inquire about deductible amounts as they may vary by the type of claim you file. END
 TITLE: A Homeowner’s Guide to Earthquake Insurance CONTENT: Who Needs Earthquake Insurance?\n-------------------------------\nThere are a few factors to consider when determining whether or not earthquake insurance is worth it for you. Some questions to ask yourself:\n**Is your home in an area that's vulnerable to earthquakes?** Homes in California, Alaska, Oregon and Washington are at a greater risk for earthquakes than other states. Purchasing a policy could save you thousands out of pocket in the end. This is especially the case in California, which is the location of more home-damaging earthquakes than any other state. You can learn more about the earthquake hazard in your area on the United State Geological Survey's website.\n**Are you financially prepared to cover damages if an earthquake hits and you don't have adequate coverage?** If you have a hefty emergency fund at the ready and are financially prepared for disaster, you may choose not to pay a monthly premium for earthquake insurance—especially if you're in a low-risk area. If a quake does hit, however, you'll have no choice but to pay out of pocket to cover repairs, replace personal belongings and pay for temporary housing.\n**Do the potential benefits of an earthquake policy outweigh the costs?** Again, there's no surefire way to know if a property-damaging earthquake will hit. But if you believe the plan premiums are a small price to pay for cost savings you could incur if repairs are needed, it may be best to purchase earthquake insurance. END
 TITLE: A Homeowner’s Guide to Earthquake Insurance CONTENT: How Much Does Earthquake Insurance Cost?\n----------------------------------------\nIn most states, you will pay between $100 and $300 annually for coverage. That's unless you live in Alaska, California, Oregon or Washington, where annual premiums can jump to $800 or higher.\nUltimately, the amount you will pay is determined by these factors:\n*   **Location of your home**: Is your home located in a high-risk area? If you live along the West Coast or are close to a fault line, you will likely pay more for coverage as the area is susceptible to earthquakes.\n*   **Age of your home**: Premiums for older homes could cost you more. They tend to lack the improvements and building standards that help to minimize earthquake damage. Recently renovated homes may qualify for lower premiums, as long as renovation included earthquake retrofits and not just superficial upgrades.\n*   **Construction of your home**: Is your home a wood structure or brick building? You can expect to pay more if it's the latter since wood homes tend to be able to withstand shocks from earthquakes much better than those constructed from brick.\nKeep in mind that policies with lower deductibles carry steeper premiums. Deductibles can range from 2% to 20% of your home's replacement value. END
 TITLE: A Homeowner’s Guide to Earthquake Insurance CONTENT: How to Save on Earthquake Insurance\n-----------------------------------\nIf you decide earthquake insurance is right for you, use these strategies to save money on your policy:\n*   **Improve your credit.** Insurance providers in many states can use credit-based insurance scores to assess risk and the likelihood that you'll file a claim. Lower credit scores could mean higher premiums. You can improve your credit by making all your debt payments on time, reducing your credit card balances and only applying for credit as needed.\n*   **Shop around.** Don't settle for coverage from the first provider you find. Get quotes from multiple companies and go with the most reputable option that fits your needs and budget. If you live in California, coverage is available through the nonprofit California Earthquake Authority (CEA).\n*   **Raise your deductible.** A higher deductible means a lower premium since you will assume more risk. But only make this move if you could afford to pay the higher deductible if an event were to occur. END
 TITLE: How Much Does Homeowners Insurance Cost? CONTENT: Homeowners insurance is designed to protect you if an insured event damages your home or belongings. This could include anything from a fire to a tropical storm to a burglary. In many cases, your homeowners insurance policy will also cover medical fees and legal costs if someone injures themselves on your property. It's worth noting, however, that floods and earthquakes are generally excluded from standard policies. (More on this in a bit.) Reading over your policy prior to signing on the dotted line will clarify what's covered.\nWhether a hailstorm damages a window or a friend slips and falls during a dinner party, the first step after ensuring everyone's safety is to file a claim with your insurance company. If the incident is indeed covered, you'll be expected to meet your deductible before your plan will cover any portion of the loss. In most cases, you'll have to satisfy that deductible every time you file a new claim. The Insurance Information Institute points to Florida hurricanes as an exception. Instead of a deductible applying to each storm, it's good for the whole season. END
 TITLE: How Much Does Homeowners Insurance Cost? CONTENT: What Influences Your Homeowners Insurance Premiums?\n---------------------------------------------------\nHow much you'll pay for homeowners insurance depends on a number of factors. Premiums can vary significantly from state to state, which makes sense—insurance companies may charge you more if, say, you live in a high-risk area for brush fires. The replacement cost of your home influences the cost of premium too. The same can be said for your home's age. Having a historic home with a storm-sensitive roof and outdated electrical system will likely mean paying more for homeowners insurance.\nYour credit-based insurance score can be another driving force when determining your premium. Where it's allowed, your credit can be part of the overall risk assessment an insurer conducts before approving or denying you coverage and when deciding your rates. It focuses on things like payment history, credit utilization ratio and delinquent accounts. If there are red flags here, you could end up paying more for homeowners insurance.\nOne other detail that can affect your premium is your deductible. Generally speaking, a higher deductible translates to a lower premium, and vice versa. The majority of insurers offer a minimum deductible of $500 or $1,000, but raising it above the $1,000 mark can bring down the cost of the policy, according to the Insurance Information Institute. Of course, doing so doesn't come without risk. In the event that you need to file a claim, you may need to come up with a higher deductible. END
 TITLE: How Much Does Homeowners Insurance Cost? CONTENT: Average Homeowners Insurance Cost by State\n------------------------------------------\nHomeowners insurance premiums vary, but the average cost for the most common type of policy was $1,211 in 2017, according to a study published last year by the National Association of Insurance Commissioners. The state you live in plays an important role in determining how much you'll pay. Here's a state-by-state breakdown of the average premiums for homeowners insurance.\nSource: Insurance Information Institute END
 TITLE: How Much Does Homeowners Insurance Cost? CONTENT: How Much Does Earthquake Insurance Cost?\n----------------------------------------\nWhile earthquake coverage isn't included in standard homeowners insurance policies, most policies do cover losses related to fires that happen after an earthquake. To be covered for damage directly related to an earthquake, you'll have to purchase additional coverage. These types of policies typically cover home repairs, the replacement of personal belongings and interim living expenses following a quake.\nHow much you'll pay for earthquake insurance depends on your area's risk level, along with your home's structure and age. Premiums also tend to be comparatively higher for brick buildings as opposed to wood structures. Not surprisingly, earthquake insurance costs more if you live along the West Coast, where earthquakes are more common. Earthquake insurance premiums in California can range from hundreds of dollars a year in less quake-prone areas to thousands of dollars annually if you live near a fault line.\nDeductibles for earthquake insurance also skew higher and typically range from 5% to 15% of the policy limit, according to the Insurance Information Institute. END
 TITLE: How Much Does Homeowners Insurance Cost? CONTENT: How Much Does Flood Insurance Cost?\n-----------------------------------\nFloods are the most common and costly natural disaster in the United States, according to FEMA. And they don't just happen during major hurricanes. Any storm that brings in heavy rain could threaten your home, especially if you live in an area that's at risk for storm surge damage. States including Florida, Louisiana and Texas top the list.\nSince flooding isn't covered by standard insurance policies, homeowners who want coverage have to purchase an additional policy. In 2018, the average annual premium for $257,000 worth of coverage was $642. To put things in perspective, the Insurance Information Institute reports that the average flood claim in 2017—the year of hurricanes Harvey, Maria and Irma—was close to $92,000.\nOne important note: If your home is flooded due to an internal problem, like a pipe unexpectedly bursting, most standard homeowners insurance policies will cover you. Flooding caused by heavy rain or an overflowing nearby river, on the other hand, is not. Be sure to read the fine print of your homeowners insurance policy for clarification. END
 TITLE: How Much Does Homeowners Insurance Cost? CONTENT: How to Save on Homeowners Insurance\n-----------------------------------\nConsumers do have some control over their homeowners insurance premium. Here are some potential money-saving strategies to consider:\n*   **Raise your deductible.** As previously mentioned, opting for a higher deductible is one way to reduce how much you'll pay for coverage. Just keep in mind that doing so means you'll have higher out-of-pocket costs should you need to file a claim, so it's a trade-off.\n*   **Shop around.** Another way to unlock potential savings is to compare quotes. Shopping around and gathering estimates from several different insurers gives you choices and allows you to see who has the best rates. One thing to be mindful of, however, is sacrificing quality for price. If disaster strikes, the last thing you want is to be underinsured, which could end up costing you more when all is said and done. The Consumer Financial Protection Bureau also recommends sharing quotes with your mortgage loan officer to make sure the coverage you're considering meets their lending requirements.\n*   **Turn to your existing insurers.** If you've been with the same auto insurance company for a number of years, they may offer you a discount for bundling your home coverage. The Insurance Information Institute reports that some companies may shave off 5% to 15% if you buy multiple policies. You may also be rewarded for your loyalty if you stay with the same insurer for the long haul. Look for other discounts too, such as those given to military service members or older Americans, for example, as a way to find additional savings.\n*   **Focus on improving your credit.** Remember, insurers in most states may check a version of your credit score when assessing your risk and determining your rate. Improving your credit score could translate to lower premiums, but its benefits can pay off in other ways as well, such as lower interest rates on loans and credit cards. Paying your bills on time, maintaining low balances on your revolving accounts, and disputing any inaccuracies on your credit report can go far in boosting your score. END
 TITLE: Does Renters Insurance Require a Credit Check? CONTENT: What Is Renters Insurance?\n--------------------------\nLandlords have their own insurance to protect the unit you live in, but that insurance won't cover loss of your personal property due to fire, theft or disaster. To protect the cost of your belongings, you'll need renters insurance, which generally covers the following:\n*   **Property**: Renters insurance pays to replace your personal belongings if they're stolen or damaged by a covered risk, such as a fire, windstorm or water damage from an overflowing bathtub. In most cases, renters insurance doesn't cover damage due to flood or earthquake; you'll have to buy separate policies for that. If you want to insure certain costly items, like a coin collection, valuable art or expensive jewelry, you may need to buy a separate rider.\n*   **Liability**: If a visitor to your rental unit is injured on the property, renters insurance can cover their medical costs, as well as your legal costs if they sue you. Renters insurance may also cover costs if a member of your household damages another tenant's property.\n*   **Loss of use**: If your rental property is unlivable due to a covered risk—for example, a fire that burned your apartment—renters insurance pays your living expenses while the unit is being repaired.\nYou aren't legally required to get renters insurance, but some landlords make it a condition of your lease. Check your lease to see if your landlord mandates rental insurance for tenants. END
 TITLE: Does Renters Insurance Require a Credit Check? CONTENT: Many factors influence your renters insurance premiums, including the insurer you choose, where you live, the amount of coverage you want and your credit score. However, the credit score that insurance companies check is not the standard FICO® Score☉ or VantageScore® you may already be familiar with.\nWhen you apply for a credit card or loan, lenders want to know that you'll be able to pay the money you owe, so they check your credit score. When you apply for insurance, insurers' primary concern is how big of a coverage risk you pose. That's why insurance companies in most states use specialized credit-based insurance scores. Credit-based insurance scores take your credit history into account to try to shed some light on how statistically likely you are to file a claim. Not all states allow these scores (California and Maryland, for example); check with your state insurance department to see if yours does.\nHaving a higher credit-based insurance score generally qualifies you for lower insurance premiums. You can't check your credit-based insurance score, but these scores are generally based on similar data as your regular credit score. For example, LexisNexis® Risk Solutions' Attract™ and FICO credit-based insurance scores rise and fall based on things such as bill payment history, credit utilization and records of defaults and collections—all factors that affect your consumer credit score. If you have a good credit score in general, you can probably feel confident that your credit-based insurance score is good, too.\nYour credit-based insurance score isn't the only factor in the cost of your premiums, however. When determining your personal risk for renters insurance and the cost of your policy, insurers also consider:\n*   **The property**: Do you live in an area that has a high crime rate or is subject to forest fires or tornadoes? High-risk locations typically mean higher premiums. However, safety measures such as smoke alarms or security guards can lower your costs.\n*   **Your relationship with the company**: If you already have one type of insurance with a company, you'll generally get a multipolicy discount when you buy renters insurance.\n*   **The amount and type of coverage**: The more coverage you need, the higher your premiums are. You'll also pay more if you need supplemental insurance for a high-end computer, antiques or other expensive possessions. Replacement cost coverage, which pays to replace your belongings with equivalent new items, costs more than actual cash value insurance, which pays out the depreciated value of your belongings today.\n*   **Your deductible**: You can lower your premiums by opting for a higher deductible; just be sure you can handle paying it in the event of a claim. END
 TITLE: Does Renters Insurance Require a Credit Check? CONTENT: Will a Renters Insurance Credit Check Impact Your Credit Score?\n---------------------------------------------------------------\nInsurance companies do check your credit when you apply for insurance, but it won't impact your credit score because it's considered a soft inquiry. A hard inquiry, which can temporarily reduce your credit score by five to 10 points, occurs when your credit is reviewed in relation to an application for credit. A soft inquiry is not generally tied to an application for credit, so it has no effect on your credit score (although it will remain on your credit report for up to two years). END
 TITLE: Does Renters Insurance Require a Credit Check? CONTENT: How to Apply for Renters Insurance\n----------------------------------\nJust as with any other purchase, you should shop around to get the best rates for renters insurance.\nTo get started, figure out how much coverage you need by estimating the value of your personal belongings. Go from room to room making notes on everything you own, from your furniture down to the contents of your linen closet. It's a good idea to take photos or record videos of your \"property tour\" to show what you own. Once you've got a list, estimate how much it would cost to replace everything.\nNext, ask your landlord what kinds of security and safety measures the property has. Burglar alarms and security locks can reduce the risk of theft, while fire alarms, sprinklers and smoke detectors can reduce the risk of catastrophic fire—all of which can lower your renters insurance premiums.\nYou can apply for renters insurance with most major insurance companies simply by going online, calling or visiting an insurance agent. You'll typically be asked to provide:\n*   Your name, address and telephone number\n*   Your Social Security Number\n*   Your birth date\n*   Your marital status\n*   The rental property's address\n*   A start date for the insurance (such as the date you'll be moving in)\n*   The value of the personal property you want to cover\nYou may also be asked if you have a pet; dog bites are not often covered by renters insurance liability coverage. END
 TITLE: Does Renters Insurance Require a Credit Check? CONTENT: Renters Insurance and Your Credit Report\n----------------------------------------\nRenters insurance is a smart investment for any tenant. There are several ways to keep your premiums low, including raising your deductible, having safety precautions in place and maintaining a good credit-based insurance score. You can get an idea of your credit-based insurance score by checking your regular credit score, since the two are usually similar. Once you've got renters insurance, be sure to pay your premiums on time; doing so will help you maintain a good credit score. END
 TITLE: How to Plan a Wedding on a Budget CONTENT: The first step to crafting your wedding budget is coming up with a number you feel comfortable with spending for the occasion. Starting to plan with an unclear spending limit could lead to overspending since seemingly small expenses can add up quickly.\nWhen making your wedding budget, consider how much you've saved up so far, your wedding timeline (and how much more you may be able to save between now and then), and any outside money, such as from one or both families, you plan to have. Be as specific as possible.\nOnce you have the budget number in mind, write down (or add to a spreadsheet) all of your potential wedding expenses in order of priority. Here are some expenses that may be involved when planning a wedding:\n*   Ceremony space\n*   Reception space\n*   Catering\n*   Photography\n*   Flowers\n*   Wedding attire\n*   Wedding planner\n*   Officiant\n*   Rings\n*   Wedding cake\n*   Transportation\n*   Hotel rooms\n*   Makeup artists\n*   Hairstylists\n*   Videography\n*   Decor\nNext, allocate funds from your budget to different areas of the wedding. You may want to do some price shopping for flowers, catering and venue space at this stage to figure out a ballpark price for each expense.\nIf you don't have the funds to cover every wedding cost on the list, you may have to make a few tough decisions about what's necessary and what you can sacrifice to stay within budget.\nTypically, caterers, photographers and other vendors require a deposit upfront to secure the date, and you pay the balance later. Saving up before the final bill is due can help you avoid relying on credit. To build up your wedding savings, you could consider opening up a separate savings account and contributing to it every week or biweekly when you get paid. END
 TITLE: How to Plan a Wedding on a Budget CONTENT: Keep Track of Your Spending\n---------------------------\nCreating the budget is the easy part—sticking to the budget can be a bit harder as you start buying decor items and choosing between catering packages. After all, it can be hard to say no when your favorite flower arrangement or cake costs more than you budgeted for.\nIf you spend more money in one area—perhaps your attire or flowers come in higher than expected—try to make adjustments to other wedding categories to balance the budget.\nEach time you spend money, be sure to write down the expense or log it in your spreadsheet so you're aware of what's left in the budget to spend. END
 TITLE: How to Plan a Wedding on a Budget CONTENT: Ways to Save Money on Wedding Costs\n-----------------------------------\nA bit of creativity and savvy wedding planning could help you have a beautiful wedding without busting your budget. Here are some potential ways to save money on wedding costs: END
 TITLE: How to Plan a Wedding on a Budget CONTENT: Benefits of Planning a Wedding on a Budget\n------------------------------------------\nOne advantage of planning a wedding on a budget is being able to devote money you save to other goals. That money could go toward your honeymoon, a down payment on a home, future baby costs or household items that weren't purchased off of your registry.\nSticking to a budget can also help you avoid racking up wedding-related debt, which would give you one less thing to worry about as you start a new life together. END
 TITLE: How to Plan a Wedding on a Budget CONTENT: Tie the Knot Without Breaking the Bank\n--------------------------------------\nIt's easy to get caught up in the excitement of wedding planning. There may be an engagement party and bridal shower to attend with your favorite people. You may be trying on dresses or tuxes and looking through wedding magazines. If you don't track spending, expenses can creep up and your wedding could end up costing more—even thousands more—than you planned.\nThe good news is that the wedding experience can be enjoyable without costing a fortune. Start a budget by figuring out how much you're willing to spend. Then, write down all of your expenses and keep track of your spending as you sign contracts with vendors.\nLastly, you could consider alternatives like a microwedding or minimony. If you're hosting fewer people, you may have more space in the budget to splurge on the food, decor or attire that you really want—or ensure that you don't start your life together saddled with extra debt. END
 TITLE: How to Get Renters Insurance CONTENT: What Is Renters Insurance?\n--------------------------\nIn the example above, you might expect the landlord's insurance to pay for your ruined furniture. After all, it's their fault the pipe burst, isn't it? Unfortunately for you, the landlord's insurance covers the damage to _their_ property—the pipe and the building—but not to _your_ property. That's where renters insurance comes in.\nRenters insurance generally includes three main types of coverage: property, liability and loss of use.\n**Property insurance** pays to replace your personal belongings. This can include clothing, furniture and electronics that are stolen or damaged by a covered risk. Your policy could cover fire or smoke damage, theft or vandalism, lightning, windstorms and water damage that's caused by structural issues (that burst pipe, for example). Items may also be covered for theft outside your home, such as a laptop stolen from your car or your hotel room.\nRenters insurance typically doesn't cover flood or earthquake damage; however, you may be able to buy separate policies for these. It also usually doesn't cover certain high-value items, such as antiques, expensive jewelry, computers or collectibles; you'll need to buy a separate endorsement or rider to cover these items.\n**Liability insurance** protects you against liability if someone is injured while in your living space. If someone slips and falls in the lobby, they might sue your landlord, but if they slip and fall in your kitchen, they might sue you. Renters insurance generally covers legal costs and sometimes even medical costs related to an injury.\nSome renters insurance policies also cover damage someone in your household causes to another tenant's property. For example, if your daughter breaks a neighbor's window while practicing her softball pitch, renters insurance may cover that cost.\nFinally, **loss of use** coverage pays your living expenses if the property becomes uninhabitable due to a covered risk. For example, insurance would pay for you to stay in a hotel and feed yourself while your landlord repairs covered damage.\nThere's no law mandating that tenants carry renters insurance. Your landlord may, however, require you to have some level of renters insurance coverage in order to rent their house, apartment or condominium. Check your lease agreement to see if renters insurance is required and what level of coverage your landlord requires you to have. END
 TITLE: How to Get Renters Insurance CONTENT: How to Apply for Renters Insurance\n----------------------------------\nApplying for renters insurance is easy to do. Most insurance companies sell renters insurance you can typically apply for online, by phone or in person by speaking to an insurance agent.\nBefore shopping for renters insurance, talk to your landlord and find out what types of safety measures they have in place. For example, living in a property that has a burglar alarm, deadbolt lock, smoke detectors, security patrol, doorman or sprinklers could lower your renters insurance premiums.\nNext, assess the value of your personal belongings. Walk around the apartment, condo or house making a list of everything you own. It's a good idea to take photos as well, especially of your more valuable items; write down or photograph serial numbers if you can. You can also do a video tour around your space. Estimate how much it would cost to replace everything you own—you'll probably be surprised.\nWhen applying, be ready to provide the following information:\n*   Name, address and telephone number\n*   Social Security number\n*   Birth date\n*   Marital status\n*   Address of the rental property\n*   Start date for the insurance (such as the date you'll be moving into the unit)\n*   Whether you have a pet (dog bites are often not covered by renters insurance liability coverage)\n*   Value of personal property you want covered END
 TITLE: How to Get Renters Insurance CONTENT: How Much Does Renters Insurance Cost?\n-------------------------------------\nHow much you'll pay for renters insurance varies from company to company and state to state, and also depends on the amount of coverage you choose. In general, renters insurance is very affordable. The average policy costs about $180 annually, according to the National Association of Insurance Commissioners.\nFactors that affect the cost of renters insurance include:\n*   **The coverage you need:** If you have to insure a valuable coin collection, expensive musical instruments or other items not covered by a normal renters policy, you'll pay more. You'll also pay more if you buy earthquake or flood insurance to supplement your regular policy.\n*   **Whether you buy replacement cost insurance or actual cash value insurance:** Actual cash value insurance pays you the current value of the item; replacement cost insurance pays you the cost of replacing it with a new item. For example, if your 5-year-old TV is stolen, actual cash value insurance would pay the average selling price for a 5-year-old TV. Want to be able to replace your old TV with a new one? Then opt for replacement value coverage.\n*   **Your deductible:** Your deductible is the amount of loss you'll have to pay out of pocket when you file a claim. For instance, if $2,000 worth of property is damaged in a fire and you have a $500 deductible, the insurance company will pay you $1,500 (the claim amount minus your deductible). The higher your deductible, the lower your monthly premiums will be.\n*   **The relative safety of your property:** If you're renting in a high-crime neighborhood, you'll likely pay more for renters insurance. Conversely, renting a property that's protected by fire alarms, deadbolt locks, smoke detectors and other safety devices can lower your premiums.\n*   **Multipolicy discounts:** Many insurance companies offer discounts if you buy more than one policy. Getting renters insurance from the same company that handles your life insurance or car insurance could net you a lower rate.\nYour credit score could also affect the cost of your renters insurance premiums. In states where it is allowed, insurance companies might run a credit check when processing your application. Lower credit scores could indicate you may have more trouble paying your premiums. If you're worried about your credit score impacting your insurance costs, check your credit score and review your credit report to make sure it's accurate. END
 TITLE: How to Get Renters Insurance CONTENT: Is Renters Insurance for You?\n-----------------------------\nRenters insurance offers a lot of protection for a relatively small sum. When you think about how much it would cost to replace everything in your apartment or condo, you'll see that renters insurance is a pretty smart investment. For an average of just $15 a month, you could protect your belongings, protect yourself against lawsuits and prevent a potentially huge expense. END
 TITLE: How Do I Qualify for a Small Business Credit Card? CONTENT: You don't need to have employees or even a corporate business structure to qualify for a small business credit card. People who freelance, do gig work (such as driving for rideshare services) or run a business from home can apply for small business credit cards. Sole proprietorships, limited liability corporations (LLCs) and other types of businesses can qualify, as can home-based and part-time businesses.\nMaking business purchases with a small business credit card helps separate your business and personal finances. When you file taxes, having your business expenses on a separate business credit card helps prove you are operating a for-profit business, not a hobby. Many business credit cards also sort your spending into different categories, such as travel, entertainment or services, which can simplify your bookkeeping and taxes.\nA business credit card can also help your company establish a business credit score. Like your personal credit score, this number, ranging from zero to 100, indicates the amount of debt your business has and how well you manage it. Making your business credit card payments on time and maintaining a low balance (or no balance at all) will help boost your business credit score. END
 TITLE: How Do I Qualify for a Small Business Credit Card? CONTENT: How to Apply for a Small Business Credit Card\n---------------------------------------------\nApplying for a small business credit card is similar to applying for a personal credit card, but in addition to your personal information, the application will also ask for information about your business. Be prepared to provide the following:\n*   Business name, address and phone number\n*   Industry\n*   Years in business\n*   Number of employees\n*   Annual business revenue\n*   Federal Tax ID: This could be your employer identification number (EIN) or, if you don't have an EIN, your Social Security number (SSN).\n*   Personal information such as name, address, SSN and annual income\nSome business credit card issuers report your account activity only to commercial credit bureaus; others report to consumer credit bureaus as well. Accounts that are reported to consumer credit bureaus will affect your personal credit score. To minimize the card's impact on your personal credit, you can look for a card issuer that reports only to commercial credit bureaus. However, keep in mind that business credit cards generally require you to personally guarantee repayment of your debt—including any purchases by employees or other authorized cardholders—so falling behind on your payments could still affect your personal credit. END
 TITLE: How Do I Qualify for a Small Business Credit Card? CONTENT: How to Check Your Business and Personal Credit Scores\n-----------------------------------------------------\nCredit card issuers consider both your business and personal credit history and credit score when they evaluate your application for a small business credit card. Applying for a credit card will cause a hard inquiry on your credit report, which can have a slight, short-term negative effect on your credit score. To help minimize this impact, be selective and apply for a card designed for your credit score range so you're more likely to get approved.\nMost small business credit cards are targeted to people whose credit scores are good or excellent, which translates to a FICO® Score☉ of 670 or higher. There are some cards for those with lower credit scores, but they tend to have higher annual percentage rates (APR) and offer fewer rewards or perks.\nChecking your business and personal credit scores will help you identify business credit cards for which you're likely to qualify. You can buy a one-time copy of your Experian business credit report and credit score or sign up for Experian's business credit monitoring services to access your report and score any time. You should also get a free copy of your personal credit report, review it for accuracy and check your personal credit score.\nIf your scores aren't where you want them to be, improving them before you apply for a business credit card could help you qualify for a card with lower interest rates and better rewards. Paying down credit card debt, making payments on time and reducing your credit utilization ratio (the amount of available credit you're using) can all help to improve your credit. END
 TITLE: How Do I Qualify for a Small Business Credit Card? CONTENT: Give Your Business Credit\n-------------------------\nBy letting you make necessary purchases without dipping into your cash, a small business credit card can make it easier to manage your business's spending and cash flow. Qualifying for a small business credit card is simple to do if you have good credit.\nOnce you receive a business credit card, practicing good credit habits such as making on-time payments will help maintain a good credit score. If employees are authorized to use the card, keep an eye on their spending as well; remember, you're ultimately responsible for making the payments.\nYour business credit score affects how vendors, suppliers and lenders see your business. Signing up for Experian's business credit monitoring services is an easy way to keep tabs on this vital number. END
 TITLE: What Does Homeowners Insurance Cover? CONTENT: Is Homeowners Insurance Mandatory?\n----------------------------------\nHomeowners insurance is a form of coverage that protects your home and belongings from loss or damage. While you aren't legally obligated to carry it, if you're taking out a mortgage, most lenders will require you to purchase homeowners insurance.\nThat's because the lender makes a large investment in your property when you get a mortgage to buy a home. If your home burns down or is otherwise damaged while you are paying on the loan, homeowners insurance helps protect the lender from financial loss.\nIt's common (but not usually required) for homeowners insurance premiums to be rolled into your monthly mortgage payment. Your payment goes into an escrow account each month, and your lender pays the insurer on your behalf.\nJust like with other forms of insurance, homeowners insurance comes with a deductible. If you file a claim, you'll pay the deductible amount, after which your insurance will kick in and the insurer will pay the covered amount above that. END
 TITLE: What Does Homeowners Insurance Cover? CONTENT: What's the Difference Between Homeowners Insurance and Mortgage Insurance?\n--------------------------------------------------------------------------\nThe names may sound similar, but homeowners insurance and mortgage insurance are very different types of financial products. The short version: Homeowners insurance protects you and your property, while mortgage insurance protects your lender if you can't make your loan payments.\nIf you take out a conventional mortgage and make a down payment of less than 20%, the lender considers the loan riskier because you have minimal equity in the home. In this case, the lender will require you to purchase mortgage insurance. If you default on the loan, the insurer pays the lender.\nOn a conventional loan, once you reach 20% equity in the home, you can usually cancel your mortgage insurance. If you take out a government-backed FHA loan, you have to pay mortgage insurance for the life of the loan if you make a down payment under 10%.\nHomeowners insurance, on the other hand, isn't related to your mortgage. It's a way of reducing your (and your lender's) financial risk in case your home or belongings inside it are damaged or stolen. You pay for coverage, and if a covered incident occurs, you can file a claim and the insurer will cover the cost. END
 TITLE: What Does Homeowners Insurance Cover? CONTENT: What Is Covered Under Homeowners Insurance?\n-------------------------------------------\nMost standard homeowners insurance policies offer these four basic types of coverage, according to the Insurance Information Institute:\n*   Liability protection\n*   Home structure\n*   Personal belongings\n*   Additional living expenses\nLiability coverage protects you legally and financially if someone is hurt on your property or you or your family members unintentionally cause injury or damage to another person or their property. For example, if someone slips on your wet kitchen floor and severely hurts themselves, or your dog bites a neighbor in front of your house, your policy may help pay for their medical bills and any legal action that results from the injury.\nYour policy will also pay the cost to repair or replace your home if it is damaged or destroyed by:\n*   Fire and smoke damage\n*   Wind, hail or lightning\n*   Water, such as from a freeze or related to mold (but not from a flood)\n*   Vandalism or theft\nThese perils and more, depending on your policy, are usually covered for your home and sometimes for detached structures on your property, such as a garage, tool shed, gazebo or fence. Personal items lost in these instances are also typically included in your policy, as are items stored off-premises.\nHomeowners insurance also typically includes additional living expenses coverage, which pays for the cost of living somewhere other than your home if it's been damaged by an insured event. END
 TITLE: What Does Homeowners Insurance Cover? CONTENT: What Isn't Covered Under Homeowners Insurance?\n----------------------------------------------\nCertain perils and disasters are not covered by standard homeowners insurance policies. These include floods and earthquakes, which require separate policies if the homeowner wants coverage. In some flood-prone areas, flood insurance is required, according to FEMA, though it's a separate policy from your homeowners insurance.\nHomeowners insurance also doesn't cover routine wear and tear. If this type of coverage is important to you, you could purchase a home warranty that helps cover these types of wear-and-tear expenses, such as broken appliances or electrical issues. Intentional loss is also not covered by homeowners insurance.\nAlso, be aware that while valuables such as jewelry and furs are covered by homeowners insurance, there's a limit on liability for these types of items, according to the Insurance Information Institute. So if you have a diamond ring worth $5,000 that's stolen in a burglary, but your liability for individual pieces is only $1,500, you will only receive a fraction of what it's worth from your insurer. If you own valuables and want to make sure you're covered if anything happens to them, you can either increase your policy's liability limits or take out a floater policy that covers losses your homeowners insurance does not. END
 TITLE: What Does Homeowners Insurance Cover? CONTENT: Increase Your Chance of Getting Approved for a Mortgage\n-------------------------------------------------------\nIf you're planning to buy a home soon, your credit score will be a huge factor in determining whether you're approved for a mortgage and with what interest rate and terms. It's smart to make strides to improve your credit before you apply for a mortgage to help increase your chances of a lender saying yes—and to make sure you get the lowest interest rate possible. To see where your credit stands, you can get your free credit score and report from Experian.\nNormally your phone and utility bills don't count toward your credit score, but with the free Experian Boost™† , they can. If your credit could use a little improvement, consider signing up to potentially increase your score before applying for a mortgage. END
 TITLE: How Do I Get Homeowners Insurance With Bad Credit? CONTENT: Does Your Credit Score Affect Homeowners Insurance?\n---------------------------------------------------\nWhen you apply for homeowners or auto insurance, you can generally expect the insurance company to check your credit report. They'll typically also use a credit-based insurance score based on your credit history to determine the likelihood that you'll file a claim.\nAccording to the National Association of Insurance Commissioners, 85% of homeowners insurance companies use credit-based insurance scores in states where it's legally allowed.\nThis means that if you have a relatively low credit score, it could potentially lead to higher premiums on your policy. That said, your credit history isn't the only factor insurance companies consider when determining rates. Other factors include:\n*   Coverage amount\n*   Deductible amount\n*   Location of the covered property\n*   Local crime statistics\n*   Safeguards, including smoke detectors and home security systems\n*   Construction type and materials\n*   Condition and age of the home\n*   Your previous claims history\nAs you search for a homeowners insurance policy, take time to shop around and compare quotes from multiple insurers before you settle on one. Also, keep in mind that many insurance companies offer discounts on bundled homeowners and auto insurance policies.\nThat won't necessarily ensure the lowest price, but it can help as you look for the policy with the best value. END
 TITLE: How Do I Get Homeowners Insurance With Bad Credit? CONTENT: Can You Get Homeowners Insurance With a Bad Credit-Based Insurance Score?\n-------------------------------------------------------------------------\nCredit-based insurance scores are like traditional credit scores, but with a couple of differences in how they weigh certain factors of your credit history. For example, here's how the FICO® Insurance Score compares with the base FICO® Score☉ that you usually see:\nFICO® Insurance Score\nFICO® Score\n**Payment history**\n40%\n35%\n**How much you owe**\n30%\n30%\n**Length of credit history**\n15%\n15%\n**Recent inquiries**\n10%\n10%\n**Credit mix**\n5%\n10%\nInsurers may also use the LexisNexis Attract Score, which considers many of the same factors. Insurance companies calculate these scores based on the information in your credit report. Those with low credit-based insurance scores are statistically more likely to file a claim than someone with a high score.\nThat factor alone won't necessarily result in a denial, though. Instead, it means a policyholder with bad credit will typically pay more for coverage than they would have with a higher credit-based insurance score.\nIf you have a poor credit-based insurance score as well as issues with some of the other factors that insurance companies consider, it is possible you'll have a tough time getting approved. END
 TITLE: How Do I Get Homeowners Insurance With Bad Credit? CONTENT: How to Improve Your Credit to Qualify for Better Home Insurance Rates\n---------------------------------------------------------------------\nWhile your credit scores and your credit-based insurance scores are calculated differently, they both are based on the information found in your credit report.\nAs such, improving your regular credit score can result in increasing your insurance score. Here are some ways you can work on improving your credit score and credit-based insurance score at the same time:\n*   **Focus on payment history.** Your responsibility with managing your payments is crucial for each score type, so it's important to make it a priority. Set a goal to make all your debt payments on time. It might be helpful to set up automatic payments on your accounts. If you have any past-due accounts, work to get caught up as quickly as possible.\n*   **Reduce your credit card debt.** Having a balance on your credit card that's high relative to its credit limit can hurt your scores. The lower your credit utilization ratio—your balance divided by your limit—the better it is for your credit score.\n*   **Gain authorized user status.** If you have a loved one who has a credit card with a positive history, consider asking if you can be added to the account as an authorized user. Once you're on the account, its entire history will be added to your credit reports, which can help improve your scores.\n*   **Keep old accounts.** If you have old credit cards you no longer use, it's often wise to keep them open instead of closing them. Their positive history can continue to help maintain good credit because it will contribute to the length of your credit history and help you keep your overall credit utilization lower.\n*   **Avoid new credit unless necessary.** Virtually every time you apply for credit, the lender will run a hard inquiry on your credit reports, which can knock a few points off your credit score. And whenever you open a new credit account, it reduces your length of credit history, which impacts your length of history. Unless you absolutely need to take on new debt, it's usually best to avoid applying for both loans and credit cards.\n*   **Dispute inaccurate credit information.** Check your credit reports to make sure all the information found in them is accurate and up to date. If you find what you believe to be incorrect or fraudulent information, you can dispute it with the credit bureaus, who will revise or remove it if they can verify your claim.\nAs you take these and other steps to improve your credit score, you'll have a better chance of qualifying for better insurance rates, as well as more favorable rates when you apply for credit. Continue to check your credit score regularly to track your progress, and watch out for anything new that might damage your scores.\nOnce you've had a chance to increase your credit score, ask your insurance company upon renewal to reevaluate your situation to see if you can get a lower rate. If you don't want to wait, you can also request quotes from other insurers and compare them to what you're paying now, to see if you can save. END
 TITLE: How Do I Get Homeowners Insurance With Bad Credit? CONTENT: Continue to Monitor Your Credit for Financial Success\n-----------------------------------------------------\nBuilding your credit history can help you qualify for better insurance rates, but avoid the urge to stop focusing on your credit score once you've accomplished that goal. With Experian's free credit monitoring service, you'll get free access not only to your FICO® Score powered by Experian data, but also to your Experian credit report, which is updated every 30 days.\nYou'll also get real-time alerts whenever there are changes to your credit report, such as new inquiries, new accounts and changes to your personal information.\nAs you continue to monitor your credit, you'll be able to spot potential issues and resolve them quickly. You'll also be able to see exactly how actions you take with your credit affect your scores. As you maintain a strong credit history, you'll continue to benefit from lower insurance rates, as well as interest rates. END
 TITLE: Does Your Credit Score Affect Homeowners Insurance? CONTENT: How Credit Scores and Credit-Based Insurance Scores Differ\n----------------------------------------------------------\nSince their development in the 1990s, insurance companies have been able to use credit-based insurance scores to help determine who to offer insurance to and how much to charge in premiums. Similar to the credit scores that lenders use, credit-based insurance scores are based on your credit report and show the relative risk of working with different people. But that's just about where the similarities end.\nCredit-based insurance scores may have different ranges and names than other types of credit scores and be calculated by different companies than the ones that calculate lending scores. These scores may also consider different parts of your credit report or use different weighting than the credit scores used for lending—which makes sense, because insurance scores have a different goal.\nThe scores that FICO® and VantageScore® develop for lenders predict the likelihood that someone will be 90 days past due on a bill within the next 24 months. But insurance scores predict the likelihood that someone will file an insurance claim. END
 TITLE: Does Your Credit Score Affect Homeowners Insurance? CONTENT: Do Homeowners Insurers Check Your Credit?\n-----------------------------------------\nMany homeowners insurance companies will check your credit and use credit-based insurance scores. However, your credit-based insurance score will be one of many factors that are considered.\nAlso, your insurance score generally won't be the sole factor leading to you being denied or receiving a higher rate—many states don't allow insurance scores to be used this way. Some states also strictly regulate or completely outlaw the use of credit-based insurance score in relation to homeowners insurance.\nFor example, if you live in California, Massachusetts or Maryland, homeowners insurance companies don't use an insurance score as part of the approval or rate-setting decision. In Oregon, the insurer might be able to use your score to help determine your initial rate, but not for approval, denial, renewal or future rate-setting decisions.\nIf the insurance company does use an insurance score, your debt payment history, current account balances, recent credit applications and whether you've declared bankruptcy can all impact your score. A higher score may make it easier to get a homeowners insurance policy at a low rate. But remember, your insurance score is only one of many factors, so its impact will be limited. END
 TITLE: Does Your Credit Score Affect Homeowners Insurance? CONTENT: What Else Impacts Your Homeowners Insurance Premiums?\n-----------------------------------------------------\nIn addition to an insurance score, your homeowners insurance premiums will be based on many different factors:\n*   **Location**: Your home's location and nearby resources can be important, as living close to a fire station or in a low-crime area can lead to lower premiums.\n*   **The home's age, renovations and materials**: The structure itself is also important, as an old home that could use a new roof may pose a higher risk to insurers than a newly built or remodeled home. Similarly, the building material and construction methods can impact premiums as these factors affect the home's vulnerability to fire or other covered hazards.\n*   **Attractive nuisances**: Homeowners insurance also includes liability coverage, which pays out when someone is injured on your property. As a result, trampolines, pools and other potentially dangerous features could increase your premiums.\n*   **Discounts:**: Insurers may offer discounts if you install different types of safety and security equipment, such as smoke detectors, deadbolts and burglar alarms. You may also be able to get a discount if you're retired (as you may be home more often) or purchase multiple types of insurance from the same company.\n*   **Your policy's coverage**: Your coverage amount, the types of coverage you purchase, add-on policies and policy modifications will all directly impact your premiums.\n*   **Your policy's deductible**: Your insurance won't cover the deductible portion of your coverage. A lower deductible means your insurance will pay out sooner, but it will also lead to higher premiums.\nOther factors can also play into how much you'll pay in premiums, such as your history of filing home insurance claims, if you're married and whether you have a certain breed of dog. You may also want to buy separate flood or earthquake coverage, or an add-on for these coverages, as your homeowners insurance policy might not automatically include this coverage.  \nHow Much Does Homeowners Insurance Cost?\n----------------------------------------\nAs stated above, many factors affect much you'll pay for homeowners insurance. Additionally, you're likely to find different rates from different insurers, even with all else being equal. This is why it's usually smart to shop around for an insurance policy with coverage and a premium that works for you.\nA 2019 report from the National Association of Insurance Commissioners found the average annual home insurance premium was $1,211 in 2017—an increase from $1,192 in 2016. The NAIC gathered the data from the department of insurance in every state except California and Texas.  \nImprove Your Credit to Qualify for Better Homeowners Insurance Rates\n--------------------------------------------------------------------\nYou may be able to get homeowners insurance with bad credit, but improving your credit may help you qualify for lower insurance premiums. It can also lead to lower rates on loans and credit cards, and may open up an opportunity to save more money by refinancing your mortgage.\nFortunately, many of the moves you can make to improve your credit-based insurance scores will also improve your other credit scores. Focus on:\n*   Paying your bills on time\n*   Paying down debts\n*   Maintaining a low utilization rate\nImproving your credit can also be partially a waiting game because a longer credit history can lead to higher scores, and the impact of negative items decreases over time. You can look for ways to build credit while you're waiting, such as opening a credit card (if you don't have one) or taking out a credit-builder loan and making your payments on time.  \nCheck Your Credit for Free\n--------------------------\nYour credit reports contain the underlying information that impacts all your credit-based insurance scores and more standard credit scores. You can check your Experian credit report for free and monitor it for changes. You can also sign up for free credit score tracking. While the free score is a FICO® Score☉ 8, not a credit-based insurance score, you may want to shop around for lower-rate loans and new insurance policies if you see your score is rising. END
 TITLE: Does Your Credit Score Affect Homeowners Insurance? CONTENT: How Much Does Homeowners Insurance Cost?\n----------------------------------------\nAs stated above, many factors affect much you'll pay for homeowners insurance. Additionally, you're likely to find different rates from different insurers, even with all else being equal. This is why it's usually smart to shop around for an insurance policy with coverage and a premium that works for you.\nA 2019 report from the National Association of Insurance Commissioners found the average annual home insurance premium was $1,211 in 2017—an increase from $1,192 in 2016. The NAIC gathered the data from the department of insurance in every state except California and Texas. END
 TITLE: Does Your Credit Score Affect Homeowners Insurance? CONTENT: Improve Your Credit to Qualify for Better Homeowners Insurance Rates\n--------------------------------------------------------------------\nYou may be able to get homeowners insurance with bad credit, but improving your credit may help you qualify for lower insurance premiums. It can also lead to lower rates on loans and credit cards, and may open up an opportunity to save more money by refinancing your mortgage.\nFortunately, many of the moves you can make to improve your credit-based insurance scores will also improve your other credit scores. Focus on:\n*   Paying your bills on time\n*   Paying down debts\n*   Maintaining a low utilization rate\nImproving your credit can also be partially a waiting game because a longer credit history can lead to higher scores, and the impact of negative items decreases over time. You can look for ways to build credit while you're waiting, such as opening a credit card (if you don't have one) or taking out a credit-builder loan and making your payments on time. END
 TITLE: Does Your Credit Score Affect Homeowners Insurance? CONTENT: Check Your Credit for Free\n--------------------------\nYour credit reports contain the underlying information that impacts all your credit-based insurance scores and more standard credit scores. You can check your Experian credit report for free and monitor it for changes. You can also sign up for free credit score tracking. While the free score is a FICO® Score☉ 8, not a credit-based insurance score, you may want to shop around for lower-rate loans and new insurance policies if you see your score is rising. END
 TITLE: Will Getting a Microloan Hurt My Credit Score? CONTENT: What Is a Microloan?\n--------------------\nAs the name implies, microloans are very small loans designed for small businesses. How small are the loans? While the average loan for Small Business Administration's flagship 7(a) loan program last year was $446,487, the average SBA Microloan was just $14,735. You can even find microloans as small as a few hundred dollars, which could be all a very small business needs to get through a rough patch.\nGiven the smaller dollar amounts, applying for microloans is usually faster and easier than applying for more traditional business loans. Microloans, however, generally have shorter terms and often have higher interest rates as well.\nA business slowdown can hurt your personal finances too. But it's important to remember that microloans can be used only for business purposes—not for personal expenses or personal debt. Allowable uses for microloans vary depending on the lender. For example, SBA microloans can be used for working capital (such as paying employees); buying business inventory or supplies; or buying machinery, equipment, furniture or fixtures. Microloans cannot be used to pay existing business debt.\nIf you need money to cover personal expenses, consider applying for a personal loan. Unlike microloans, personal loans can be used for almost anything (although some do have restrictions). END
 TITLE: Will Getting a Microloan Hurt My Credit Score? CONTENT: How Microloans Impact Credit\n----------------------------\nAlthough microloans are business loans, your personal credit score may affect your ability to get one. That's because a relatively new or very small business, especially a sole proprietorship, may have little or no business credit history. Without a business credit history to go on, lenders will consider your personal credit history when reviewing your microloan application.\nAs with any type of loan, defaulting on a microloan will negatively affect your credit score. Because many microlenders require a personal guarantee, defaulting can hurt your personal credit score as well as your business credit score.\nA microloan application will also trigger a hard inquiry on your credit report, which can cause a temporary dip in your credit score. To minimize any negative effects, concentrate on applying for microloans you're well-qualified for. If you're applying to several lenders to get the best terms, be sure to complete all your applications within a few weeks. Credit bureaus generally treat applications made within that time frame as a single hard inquiry. END
 TITLE: Will Getting a Microloan Hurt My Credit Score? CONTENT: How Can You Get a Microloan?\n----------------------------\nMost microloans come from nonprofit organizations with a mission to help new, small or disadvantaged businesses that might not otherwise qualify for business credit. The SBA's Microloan program is a good place to start. SBA microloans are administered through nonprofit community organizations and are available for $500 to $50,000. Check out the SBA's database of approved microlenders to find one that's right for you.\nOutside the SBA program, Accion and Kiva are two of the most popular nonprofit microlenders. Accion loans start as low as $300; Kiva makes loans of up to $15,000 with 0% interest. Each microlender has its own application process, requirements and criteria for applicants. Take the time to research your options and find the microloan that's the best fit for you. Your local SBA district office can help; mentors at SCORE can provide in-person and online advice for free. END
 TITLE: Will Getting a Microloan Hurt My Credit Score? CONTENT: The Bottom Line\n---------------\nMicroloans can be a good option if you don't qualify for a traditional business loan or don't need the hundreds of thousands of dollars that traditional business loans generally offer. By choosing the right microloan and paying it back on time and in full, you can not only help your business get through a cash crunch, but also help build a strong credit score. END
 TITLE: What Is a High Deductible Health Plan? CONTENT: How Does a High Deductible Health Plan Work?\n--------------------------------------------\nYou pay a monthly premium for health insurance whether you use the plan or not. When you receive health care and file an insurance claim, insurance pays part or all of the bill if the care is covered under your plan. Most plans also have an annual _deductible_ amount you'll have to cover on your own before insurance begins to cover your costs.\nEven if your plan's deductible seems high to you, it must meet standards set by the IRS to qualify as a true HDHP. In 2021, an HDHP is one with a deductible of $1,400 or more for an individual and $2,800 or more for a family, and an out-of-pocket maximum (the amount you must pay out of pocket for care, including the annual deductible) of $7,000 for an individual and $14,000 for a family. The plan must also pay for non-preventive care only after you've met your deductible.\nMost health insurance plans cover preventive care without requiring you meet your deductible first. If you have an HDHP with a $1,400 deductible, you'll pay for any non-preventive care until you've paid $1,400. After that, your insurance pays for care, although you may still have a copay (a flat fee for visiting a provider or filling a prescription) or coinsurance (a percentage of medical costs you pay after meeting your deductible).\nThe rules for HDHPs are complex. If you're not sure a plan meets the definition, go over your insurance information, contact your insurer or see if it qualifies you for a health savings account (HSA)—only HDHPs qualify for these accounts. END
 TITLE: What Is a High Deductible Health Plan? CONTENT: Pros and Cons of a High Deductible Health Plan\n----------------------------------------------\nHigh deductible health plans have some key benefits:\n*   **Potentially lower premiums**: HDHPs typically have lower premiums than non-HDHPs. The tradeoff: potentially higher out-of-pocket costs when you do file an insurance claim.\n*   **Tax-free spending account**: Only HDHP participants qualify for HSAs to save money tax-free for qualified health care costs. HSAs offer many tax advantages and can even help you save for retirement.\nHDHPs also have downsides:\n*   **Higher deductible**: You must pay your full deductible before any non-preventive care is covered.\n*   **Potentially high out-of-pocket expenses**: HDHPs have high out-of-pocket maximums, so you'll shoulder more of your medical costs than if your plan had lower maximums.\nHowever, some plans have lower premiums or higher out-of-pocket maximums than HDHPs. The out-of-pocket maximums for non-HDHP plans that conform to Affordable Care Act regulations are $8,550 for individuals and $17,100 for families—higher than the HDHP maximum. Since higher maximum limits generally mean lower premiums, you may find non-HDHP plans with lower premiums than HDHPs. END
 TITLE: What Is a High Deductible Health Plan? CONTENT: How to Decide if a High Deductible Health Plan Is Right for You\n---------------------------------------------------------------\nHDHPs can make sense for people on either end of the health care need spectrum.\nIf you're young and healthy, you might only use preventive care, which HDHPs cover before you've met your deductible. Non-HDHPs do this too, but the list of services qualifying as \"preventive care\" for HDHPs is longer, so an HDHP may cover care you'd have to pay for with a non-HDHP. In addition, non-HDHPs often require copays for preventive care before you meet your deductible, but HDHPs cannot charge copays until your deductible is met—so preventive medical care and prescriptions preventive are 100% covered.\nConversely, if you expect high medical expenses in a certain year, an HDHP might make sense. HDHPs may have lower maximum out-of-pocket costs than some non-HDHPs. And once you've met your deductible, many HDHPs cover 100% of your care. With non-HDHPs, you'll typically still have copays or coinsurance. Open an HSA for your HDHP and pay qualified expenses with pretax money to save even more.\nWhen buying health insurance, there are four types of plans to choose from: health maintenance organization plans (HMO), exclusive provider organization plans (EPO); point-of-service (POS) plans and preferred provider organization plans (PPO). Each type of plan has a network of preferred health care providers. Use doctors within the network and pay less for care; use providers outside the network and receive lower or no benefits.\nTo select the best insurance plan, consider premiums; out-of-pocket costs including the deductible, coinsurance and copays; and out-of-pocket maximums. See if your doctors are in the insurance plan's network and if your current prescriptions are covered. END
 TITLE: What Is a High Deductible Health Plan? CONTENT: How to Save Money on Health Insurance\n-------------------------------------\nThere are several strategies you can employ to reduce your health insurance costs. Here are a few:\n*   **Use an employer's health insurance plan if offered.** Getting insurance through your employer or your spouse's employer is generally cheaper than buying your own.\n*   **Stay in network for your medical care.** You'll typically pay more for using an out-of-network provider; some plans won't pay for them at all. In addition, an HDHP's out-of-pocket maximum limit only applies to in-network care.\n*   **Know how your plan works.** For example, you may need preapproval for certain procedures or a referral to see a specialist. Fail to follow the rules, and your plan may not pay.\n*   **Set up an HSA** and set aside pretax income you can then use for qualified health care costs, including copayments, coinsurance, prescriptions and medical procedures. Some employers offer HSAs, or you can open one yourself.\n*   **Ask about tax-advantaged employer plans.** Some employers offer health reimbursement arrangements (HRAs) or flexible spending accounts (FSAs), which are tax-advantaged ways to pay qualifying medical costs. They work slightly differently: An FSA is funded by pretax contributions you make, while your employer funds an HRA for you (you cannot contribute) and you withdraw money tax-free. Both types of accounts are owned by your employer, so if you leave your job, you'll lose the funds. END
 TITLE: What Is a High Deductible Health Plan? CONTENT: Choose the Right Health Insurance\n---------------------------------\nAlthough health insurance can be costly, it protects against potentially catastrophic medical expenses. Without insurance, health issues could mean medical debt that can make it harder to manage your financial obligations and potentially hurt your credit score. Your deductible is just one aspect of the big picture, but it's an important consideration in choosing the right plan for you. END
 TITLE: Understanding Your Credit Card Balance CONTENT: What Is the Difference Between Current Balance and Statement Balance?\n---------------------------------------------------------------------\nSeeing several dollar amounts on your credit card statement can be confusing and make it less clear what you're actually obligated to pay when your payment comes due.\nHere are the terms you'll likely see and what they mean:\n*   **Statement balance**: This is your total balance at the end of a billing cycle. If you want to avoid incurring interest charges, you need to pay the statement balance in full by your account due date.\n*   **Current balance**: If you check your credit card statement online, you'll also see your current balance. This is a running total that includes any new charges, fees, payments and credits that have posted to your account since the billing cycle ended. You don't need to pay the entire current balance to avoid interest charges, just the statement balance. However, if the charges you've made since the close of the last billing cycle are pushing your total credit card debt higher than you'd like, paying off the current balance early may help boost your credit score.\n*   **Minimum monthly payment**: This is the lowest amount you can pay in a billing cycle and still keep your account in good standing. The minimum payment is generally calculated based on your interest rate and your balance at the end of the billing cycle. Some card issuers calculate the minimum payment based on a flat percentage of your balance; others calculate it based on a percentage plus interest and fees. For balances under a certain amount, card issuers may not calculate an amount but instead ask for a set minimum payment, such as $25 or $35.\nThere are also two dates to pay attention to on your credit card bill: your statement end date and your payment due date. The difference between the two is called a grace period, during which time you don't accrue interest on the statement balance. If you pay the statement balance in full during the grace period, you won't owe any interest on those purchases. If you don't pay the entire statement balance, however, the remainder of the balance will start to accrue interest as soon as the grace period ends.\nHow a High Credit Card Balance Affects Your Credit Score\n--------------------------------------------------------\nYour credit utilization ratio is the amount of revolving credit you're currently using divided by the total amount of revolving credit available to you. The less of your available revolving credit you use, the better it is for your credit score. Using too much of your available credit could indicate you are having trouble managing your money and are relying on credit cards to pay your bills.\nHow much is \"too much,\" exactly? The FICO® Score☉ and VantageScore® models recommend keeping your total credit utilization ratio under 30%, but the lower, the better. That means if you have a credit card with a $10,000 limit, you should keep the balance below $3,000. Since credit utilization can account for up to 30% of your credit score, depending on the scoring model that's used, it's important to keep this ratio under control. The best way to do that is to pay off your balance in full each month.\nWhat Should I Do if My Credit Card Balance Is High?\n---------------------------------------------------\nNow that you know how important a credit utilization ratio is, what should you do if your credit utilization has crept above that 30% marker? Make a plan to pay down your credit card debt as quickly as possible. There are several ways to do this.\n*   **Use the debt avalanche method.** If there are cards you can easily pay off immediately, start there. If not, identify which card has the highest annual percentage rate (APR). After making the minimum payments on all your cards, put any extra money toward paying off that card's balance. As soon as that card is paid off in full, put your extra funds toward the card with the next highest APR, and so on until they are all paid off. Every little amount above the minimum payment you pay will help get you out of debt faster.\n*   **Get a balance transfer card.** Another approach is to transfer some or all of your outstanding balance to a credit card with a lower interest rate. Balance transfer credit cards usually offer a low or 0% APR for a limited time period on balances you transfer from an existing card. Although you'll pay a balance transfer fee (typically between 3% and 5% of the amount transferred), you can still save money if you commit to paying off the balance transferred before the introductory period ends and interest begins to accrue.\n*   **Take out a debt consolidation loan.** If you have a lot of high interest credit cards carrying balances and are having difficulty making a dent in your debt, it may be time to investigate a debt consolidation loan. This is a personal loan you can use to pay off credit card debt. When assessing if a debt consolidation loan is right for you, be sure to consider the loan's interest rate, the total lifetime cost of the loan, and any penalties or fees involved. By replacing several credit card payments with one monthly payment at a lower interest rate, debt consolidation loans can help you simplify your financial life and tackle credit card debt.\nStriking a Balance\n------------------\nUnderstanding the difference between your credit card balance, statement balance and minimum payment will help you better manage your credit card payments and keep debt under control. By making your payments in full and on time each month, you'll help to build a strong credit score. Are you wondering what your credit report has to say about your credit card balances? Get your free Experian credit report to find out. END
 TITLE: Understanding Your Credit Card Balance CONTENT: How a High Credit Card Balance Affects Your Credit Score\n--------------------------------------------------------\nYour credit utilization ratio is the amount of revolving credit you're currently using divided by the total amount of revolving credit available to you. The less of your available revolving credit you use, the better it is for your credit score. Using too much of your available credit could indicate you are having trouble managing your money and are relying on credit cards to pay your bills.\nHow much is \"too much,\" exactly? The FICO® Score☉ and VantageScore® models recommend keeping your total credit utilization ratio under 30%, but the lower, the better. That means if you have a credit card with a $10,000 limit, you should keep the balance below $3,000. Since credit utilization can account for up to 30% of your credit score, depending on the scoring model that's used, it's important to keep this ratio under control. The best way to do that is to pay off your balance in full each month. END
 TITLE: Understanding Your Credit Card Balance CONTENT: What Should I Do if My Credit Card Balance Is High?\n---------------------------------------------------\nNow that you know how important a credit utilization ratio is, what should you do if your credit utilization has crept above that 30% marker? Make a plan to pay down your credit card debt as quickly as possible. There are several ways to do this.\n*   **Use the debt avalanche method.** If there are cards you can easily pay off immediately, start there. If not, identify which card has the highest annual percentage rate (APR). After making the minimum payments on all your cards, put any extra money toward paying off that card's balance. As soon as that card is paid off in full, put your extra funds toward the card with the next highest APR, and so on until they are all paid off. Every little amount above the minimum payment you pay will help get you out of debt faster.\n*   **Get a balance transfer card.** Another approach is to transfer some or all of your outstanding balance to a credit card with a lower interest rate. Balance transfer credit cards usually offer a low or 0% APR for a limited time period on balances you transfer from an existing card. Although you'll pay a balance transfer fee (typically between 3% and 5% of the amount transferred), you can still save money if you commit to paying off the balance transferred before the introductory period ends and interest begins to accrue.\n*   **Take out a debt consolidation loan.** If you have a lot of high interest credit cards carrying balances and are having difficulty making a dent in your debt, it may be time to investigate a debt consolidation loan. This is a personal loan you can use to pay off credit card debt. When assessing if a debt consolidation loan is right for you, be sure to consider the loan's interest rate, the total lifetime cost of the loan, and any penalties or fees involved. By replacing several credit card payments with one monthly payment at a lower interest rate, debt consolidation loans can help you simplify your financial life and tackle credit card debt. END
 TITLE: Understanding Your Credit Card Balance CONTENT: Striking a Balance\n------------------\nUnderstanding the difference between your credit card balance, statement balance and minimum payment will help you better manage your credit card payments and keep debt under control. By making your payments in full and on time each month, you'll help to build a strong credit score. Are you wondering what your credit report has to say about your credit card balances? Get your free Experian credit report to find out. END
 TITLE: How the CARES Act Stimulus Can Help Your Small Business CONTENT: Tax Help for Businesses\n-----------------------\nYou probably already know that Tax Day has been extended to July 15, 2020. The CARES Act also includes several tax relief provisions designed to help business owners keep more of their cash and maintain liquidity.\n*   **Delay of estimated tax payments**: Corporations can postpone estimated tax payments due after March 27, 2020, until October 15, 2020, with no cap on the amount of tax payments postponed.\n*   **Delay of employer payroll tax payments**: Employers and self-employed individuals can defer payment of the employer share of Social Security tax for their employees. The first half of the deferred tax can be deferred until December 31, 2021, and the second can be deferred until December 31, 2022. (Businesses receiving PPP loans are not eligible for this delay.)\n*   **Employee retention tax credit**: If your business operations were fully or partially suspended due to a COVID-19 shutdown order or if your gross receipts declined by more than 50% compared with the same calendar quarter for the prior year, you may be eligible for a 50% tax credit on wages up to $10,000 per employee. The credit is for qualified wages paid from March 13, 2020, through December 21, 2020. (Businesses receiving PPP loans are not eligible for the tax credit.)\n*   **Modifications for net operating losses (NOLs)**: NOLs from 2018, 2019 or 2020 can be carried back five years. The taxable income limitation is also removed so NOLs can fully offset income.\n*   **Modification of limitation on losses for taxpayers other than corporations**: The loss limitations for pass-through businesses and sole proprietors are modified so these taxpayers can benefit from the above NOL carryback rules.\n*   **Modifications for AMT tax credits**: If your business was due to get corporate alternative minimum tax (AMT) credits at the end of 2020 or 2021, you can claim that refund now.\n*   **Modification of limitation on business interest**: For 2019 and 2020, the amount of interest expense businesses can deduct on their tax returns is temporarily increased from 30% to 50%.\n*   **Amendment regarding qualified property improvements**: Businesses can immediately write off the cost of improving facilities instead of depreciating those costs over the 39-year life of the building.\nTaking advantage of these tax changes can have a significant effect on your cash flow. Talk to your accountant or tax preparer to find out how you can make the most of the modifications and reduce your tax liability. END
 TITLE: How the CARES Act Stimulus Can Help Your Small Business CONTENT: Tips for Managing Your Business During the Crisis\n-------------------------------------------------\nKnowing that federal loans are available can give you peace of mind. But before you fill out that loan application, take these steps to manage your business finances through the crisis, and you may not need to take on debt at all.\n*   **Stay on top of receivables.** Send invoices promptly and follow up on overdue payments immediately to maximize available cash.\n*   **Keep a close eye on cash flow.** Review your cash flow statement daily to get out in front of problems.\n*   **Negotiate.** If you foresee problems paying your mortgage, your landlord, your suppliers or your service providers, contact them now and see if they can be flexible.\n*   **Explore state and local resources.** Many state and local governments are offering loans or grants to help small businesses affected by COVID-19. Visit your state and local government website to find out what kind of assistance is available in your area.\n*   **Investigate private sector resources.** Find out if private enterprise is offering any help. Amazon, for example, created a $5 million relief fund for local small businesses, and many other large employers have followed suit.\n*   **Check with your insurance agent.** Depending on your business insurance, your policy may offer some help during this crisis.\n*   **Reassess your pricing.** You may need to consider lowering your product or service prices to be more in line with what your customers can afford, as many are likely dealing with financial challenges of their own.\n*   **Create new revenue streams.** Think of ways you can adjust your product or service offerings to suit customers' current needs. For example, some restaurants have begun selling groceries and meal kits to meet consumer demand for groceries.\n*   **Don't stop marketing.** Stay top-of-mind with customers. Promote your status as a small business—many consumers care about keeping independent businesses in their communities alive.\nIf you decide a loan is the best option, carefully consider the pros and cons before you apply. Create financial projections for the coming year, using various scenarios, staffing levels and dates when your business might be up and running full force again. If you take out a loan now, will you be able to pay it off in the future, given that it may take time for your business to get back up to speed?\nAlso review your business credit score. Banks and other lenders will look at your score when determining whether to lend you money and what the terms will be. From now through May 1, 2020, Experian will offer a [free business credit report](;link=5051&nofocus=1) to companies so they can see where they stand.\nIf you're seeking customized advice, the following organizations provide free or low-cost business counseling and expert advice to help you navigate the coronavirus crisis.\n*   Small Business Development Centers\n*   Women's Business Centers\n*   SCORE Mentors\n*   Minority Business Development Centers\nCheck out these online resource centers for advice and information to help your business respond to coronavirus.\n*   SCORE Coronavirus Small Business Resource Hub\n*   U.S. Chamber of Commerce Coronavirus Small Business Guide\n*   NFIB Small Business Resources in Response to Coronavirus\n*   COVID-19 Small Business Resources\n*   Inc.'s Free Tools, Resources, and Financial Help for Business Owners Hit by Covid-19 END
 TITLE: How the CARES Act Stimulus Can Help Your Small Business CONTENT: Keeping Your Business Healthy\n-----------------------------\nThe coronavirus outbreak poses unprecedented challenges to small businesses everywhere. Fortunately, the federal government is taking quick action to help small businesses maintain their cash flow, ensure their employees get paid and continue contributing to the U.S. economy. If you were worried that coronavirus would sink your business, the tax breaks and financing options offered by the CARES Act could serve as a life raft to keep you afloat until the crisis subsides. END
 TITLE: What Is Microlending? CONTENT: How Does Microlending Work?\n---------------------------\nThe concept of microloans emerged in the 1970s when Muhammad Yunus, an economics professor in Bangladesh, started looking for a way to help people escape poverty. He lent $27 to a group of women who owed money for materials they used to make and sell stools. The small loan was enough to help them get out of debt and transform their stool manufacturing operation into a profitable business.\nBoth overseas and in the U.S., microloans are typically made by nonprofit organizations. Because microlending is designed for small business owners who can't get credit elsewhere, loan terms and lending criteria are usually more flexible than those for typical business loans. To increase borrowers' odds of success, microlenders may also offer them business services such as mentoring, technical assistance, networking opportunities and assistance with sales and marketing.\nThe best-known U.S. microlending program, the SBA Microloan Program, provides loans of up to $50,000 for small business startup and expansion. Loans average about $13,000 each and can be used for working capital, inventory, supplies, furniture and fixtures, machinery and equipment. They can't be used to pay existing debts or buy real estate.\nSBA microloans are administered by community-based nonprofit organizations that serve as intermediaries for the agency. Each of these lenders has its own criteria for loan applicants; however, most require you to put up some collateral and personally guarantee the loan. You can find SBA microlenders in your area through your local SBA District Office.\nAlso consider these popular microlenders:\n*   **Kiva** lends U.S. small businesses up to $15,000 at 0% interest. Fill out an application online and, if you prequalify, you'll have 15 days to invite friends and family to finance you on the Kiva platform. If you're successful, your request is promoted to Kiva's 1.6 million lenders worldwide for 30 days.\n*   **Accion Opportunity Fund** offers loans ranging in size from $5,000 to $100,000 for entrepreneurs who have been in business at least 12 months, own at least 20% of the business, and generate $50,000 or more in annual sales. Loans are customized to your needs; you can also receive business education, coaching and access to support networks.\n*   **Grameen America** is an offshoot of Yunus' Grameen Bank that provides microloans of $2,000 to $15,000 to women who live below the federal poverty line. Women form groups of five, open commercial bank accounts, and receive financial training before getting their loans. They have six months to repay the loans, during which time they receive ongoing support. Once the loan is repaid, borrowers become eligible for larger loans. END
 TITLE: What Is Microlending? CONTENT: Microlending Pros and Cons\n--------------------------\nMicrolending has some benefits and disadvantages to be aware of.\n**Pros**:\n*   Microloans are generally easier to get than traditional business loans, especially for new businesses or those with poor credit.\n*   You may also receive access to education and assistance a traditional lender wouldn't offer, which can improve your chances of business success.\n*   If the lender reports to at least one of the three commercial credit bureaus—Experian, Dun & Bradstreet and Equifax—repaying the loan can help your business build a credit history. This can make it easier to qualify for business credit in the future.\n**Cons**:\n*   If you need more than $50,000, a microloan won't provide enough money. You'll either need to look elsewhere or supplement your microloan with other funds.\n*   Microloans may require putting up collateral or making a personal guarantee.\n*   Failing to repay the loan can hurt your business and personal credit, and you could lose any collateral you pledged. END
 TITLE: What Is Microlending? CONTENT: How to Get Started With Microlending\n------------------------------------\nQualifying for and receiving a microloan works like any type of business loan. You'll need to:\n1.  Write a detailed business plan that includes financial projections. This helps to convince lenders your business will be successful.\n2.  Determine how much money you need. Based on your business plan, and any other sources of capital such as your own savings or loans from family and friends, figure out how much you need to borrow.\n3.  Check your business and personal credit scores. If you've been in business for a while, your company should have its own credit score; if not, lenders will look at your personal credit score. (The Federal Reserve's 2020 Small Business Credit Survey survey reports 88% of small businesses that got financing used the owner's personal credit.) Before starting the loan process, check your business credit and your personal credit—your personal credit reports can be viewed for free from all three credit bureaus through AnnualCreditReport.com. You can also see your personal credit history and your personal credit score for free through Experian. Improving your credit scores can make it easier to qualify for a loan.\n4.  Identify any assets you can use as collateral. For example, business equipment or accounts receivable could be used to secure the loan, which can help you get approved.\n5.  Complete the loan application and provide any supporting documentation your lender requires. END
 TITLE: What Is Microlending? CONTENT: Microloan Funding Alternatives for Small Businesses\n---------------------------------------------------\nIf you need a small loan and are struggling to access credit from traditional sources, there are other options besides microloans you can consider.\n*   **Peer-to-peer lending**: Peer-to-peer (P2P) lending websites match individuals seeking money with individuals who have money to lend. To start the process, you'll complete a P2P loan application online and get preapproved. This typically results in a soft inquiry into your credit report, which won't affect your credit score. The P2P platform generates a loan offer and acts as an intermediary to handle the financial transactions between borrower and lender. Maximum loan amounts are generally around $50,000, but loans of $10,000 to $25,000 are more common. Popular P2P websites Prosper and Peerform offer personal loans; LendingClub also offers business loans of up to $500,000.\n*   **Other nonprofit organizations**: Nonprofits other than microlenders may offer financing, especially if you are a member of a group typically underrepresented in business, such as Indigenous peoples, women, people of color, LGBTQ people or military veterans. For example, the Mission Asset Fund, which assists people in low-income communities, offers 0% interest loans of up to $2,500 to start or expand a business.\n*   **Grants**: A grant is money you don't have to pay back. You can find grants through government agencies, community organizations and large corporations. Like microloans, many grants target business owners who can't access traditional business financing. Visit Grants.gov to learn more and search for grants.\n*   **Crowdfunding**: You can use a crowdfunding website to promote your business and ask for donations from individuals. GoFundMe, IndieGoGo and Kickstarter are popular crowdfunding sites. Keep in mind you'll have to give donors something of value, such as early access to your product, in return for their contributions.\nYour local SCORE or Small Business Development Center (SBDC) office may be able to direct you to other options for microfinancing in your community. END
 TITLE: What Is Microlending? CONTENT: Little Loans, Big Results\n-------------------------\nEven a modest microloan can help boost your business in more ways than one. Putting the loan to use to achieve your goals can make your business more profitable. Repaying the loan on time will help establish a business credit score, which can pave the way to bigger loans—and more business growth—later on. END
 TITLE: How to Prepare for the End of COVID-19 Relief Programs CONTENT: When Will Pandemic Assistance Programs End?\n-------------------------------------------\nFirst, find out when the COVID-19 relief programs you use will end. As of May 2021, these dates are as follows:\n*   **Expanded federal unemployment benefits** **end September 6, 2021**: These include $300 in weekly benefits, an extra $100 in weekly benefits for those who had both a job and self-employment income, benefits for self-employed people and others who don't normally qualify, and extended federal benefits after state benefits are used up. Some states have decided to opt out of the enhanced federal unemployment benefits prior to the September 6 cutoff date, so it's a good idea to contact your state unemployment office or visit its website to see when your state benefits end and whether you need to reapply.\n*   **Student loan relief ends January 31, 2022**: The Coronavirus Aid, Relief and Economic Security (CARES) Act suspended payments and paused interest on federal direct loans and FFELs (Federal Family Education Loans). The number of student loans in deferral or forbearance more than doubled in 2020, according to Experian. Some private lenders also offered forbearance or deferral options; if your private student loan payments are currently suspended, ask your loan servicer when this will end.\n*   **Rent relief**: The federal moratorium on eviction for nonpayment of rent ends October 3, 2021. However, many states have their own renter protections. Visit your state government website or check the Eviction Lab's database of federal, state and local eviction policies for more information.\n*   **Mortgage relief**: The CARES Act suspension of foreclosures on homes with federally backed or insured mortgages ends September 30, 2021. As of April 2020, the number of mortgages in deferral or forbearance had doubled, Experian research shows. If your mortgage company suspended your loan payments, ask them when your deferral or forbearance ends.\n*   **Utility bills**: Some state and local governments prohibited utility companies from shutting off essential services to people who couldn't pay their bills. If you're taking advantage of such a program, contact your service provider to see when it will end.\n*   **Health insurance**: The federal government paid for COBRA coverage for qualifying individuals during the pandemic; these payments end on September 30, 2021. The $1.9 trillion American Rescue Plan Act, enacted in March 2021, expanded access to Affordable Care Act (ACA) health insurance as well as tax subsidies for buying it. If your federal COBRA payments are ending, you can shop for insurance on Healthcare.gov through August 15, 2021. Federal and state tax subsidies may cover some (or even all) of your premium costs. END
 TITLE: How to Prepare for the End of COVID-19 Relief Programs CONTENT: Make a Post-Pandemic Budget\n---------------------------\nIf payments you've deferred will be starting up again, find out exactly how much you will owe and when. If assistance is ending, assess how that affects your income. Use this information to create a new budget and prioritize payments.\nMany relief programs won't end for several months. Use that time to:\n*   **Reduce spending.** Consider moving in with family members, taking on a roommate or cutting out all but the essential expenses. A HUD housing counselor can help you explore options for lower-cost housing. If you're just graduating from college, moving home could help you save up for payments due in the fall.\n*   **Increase your income.** Look for ways to make extra money. Consider getting a second job, selling clothing or other items on eBay or Craigslist, or starting a business.\n*   **Build up your savings.** Sock away as much money as you can. Instead of spending any money you may have received as a tax refund or stimulus payment, save it instead.\nAre you struggling with debt and not sure you can make payments without COVID-19 relief? Consider credit counseling. A reputable credit counseling agency can help you create a debt management plan. END
 TITLE: How to Prepare for the End of COVID-19 Relief Programs CONTENT: What to Do if You Can't Pay Your Bills\n--------------------------------------\nIf you're worried about paying your bills once pandemic relief ends, don't wait until payments are due. Contact the creditor or service provider right away to explain your financial situation and discuss options.\nUse Experian's links to financial and non-financial institutions' relief measures to find your creditors or service providers and see if you can:\n*   **Get an extension.** If an extension on your benefits or loan suspension is available, find out if it's automatic or if you must apply. Complete any required applications immediately to avoid delays in processing.\n*   **Negotiate your payments.** Creditors may be willing to reduce your payments, change payment due dates to a better time of the month, or split big payments into multiple smaller ones (such as paying your rent biweekly instead of monthly).\n*   **Modify your loan.** Home loan borrowers in financial hardship may qualify for mortgage modifications such as a reduced interest rate or extended repayment term. If you have a federal student loan, you may be able to change your loan repayment plan.\n*   **Refinance your loan.** With interest rates at historic lows, borrowers with solid credit and income could refinance a mortgage, student loan or auto loan into a smaller, more manageable payment. By refinancing a federal student loan with a private lender, you'll lose the benefits federal student loans enjoy, such as the possibility of loan forgiveness and suspended payments under the CARES Act, but you may be able to reduce your monthly payments with a lower interest rate. END
 TITLE: How to Prepare for the End of COVID-19 Relief Programs CONTENT: Seek Other Sources of Financial Help\n------------------------------------\nInvestigate federal, state and local programs that can offer financial assistance. Depending on your income, you may qualify for welfare or food stamps, or assistance paying for telephone service, broadband internet service, home energy, medical care or prescription drugs.\nVisit your state and city government websites for relief programs in your area. Renters can check the National Low Income Housing Coalition's database of [COVID-19 emergency rental assistance](!\/vizhome\/FINALStateandLocalCOVID-19EmergencyRentalAssistanceProgramsTable\/FINALTABLE) programs.\nYour employer may be able to help you repay student loans. The CARES Act allows employers to contribute up to $5,250 annually in student loan repayment assistance, tax-free to both employer and employee, through the end of 2025. If you're unemployed, you may be able to put federal student loans in deferment after the federal relief program ends, although interest will keep accruing on unsubsidized or PLUS loans. END
 TITLE: How to Prepare for the End of COVID-19 Relief Programs CONTENT: Keep Up with National and Local News\n------------------------------------\nNew pandemic relief measures continue to roll out, and more may be coming. For example, some believe the president or Congress will propose expanding federal student loan forgiveness or income-based repayment plans. Stay informed so you don't miss out on programs that could help you.\nYour state, city or town may also offer financial aid. In California, for instance, Governor Gavin Newsom recently proposed another $8 billion relief plan including state stimulus checks, renter assistance and direct payment of utility bills. END
 TITLE: How to Prepare for the End of COVID-19 Relief Programs CONTENT: Protect Your Credit\n-------------------\nPayment history is a big factor in your credit scores, so be sure to make all your payments on time. Track due dates and minimum payments for each bill. Consider setting up autopay so you don't pay late and potentially hurt your credit.\nScams typically spike during a crisis, and the pandemic is no exception. To protect against identity theft, review your bank and credit card accounts for unusual transactions. Check your credit reports with all three credit bureaus (Experian, TransUnion and Equifax). Through April 2022, you can get a free copy of your credit report from each bureau every week at AnnualCreditReport.com. You can also sign up for free credit monitoring from Experian for additional peace of mind.\nWith careful planning and smart money management, you can successfully handle your bills—and maintain your credit score—as life post-pandemic returns to normal. END
 TITLE: What Is the Difference Between a Grant and a Business Loan? CONTENT: Business grants come in all shapes and sizes, but they all have a couple of things in common. First, you don't have to repay the money from a grant. Second, the purpose of a grant is to help the granting organization achieve a goal. Federal grants, for instance, could be issued to provide public services, stimulate the economy, support critical recovery initiatives or facilitate innovative research. Meanwhile, Visa offers grants of up to $50,000 for products that deliver innovative payment and commerce solutions to consumers and businesses.\nGrants can come from federal, state and local governments; nonprofit and community organizations; and for-profit companies. Many grants are designed to help business owners who have historically had trouble getting financing from banks and investors, such as women, military veterans and members of minority groups.\nCompetition for grants is fierce. You may see ads touting free grants to start a business, but most grants are for existing businesses, not startups. Having business experience gives the granting organization confidence you can use the grant responsibly to carry out the grant's intended goal.\nTo get a business grant, you'll first have to find a grant you are qualified for and complete the application process. Grant qualification requirements can be very strict, but some have more general criteria. The complexity of grant applications can also vary greatly: Some require lots of documentation; others are simple, like the one-page application for WomensNet grants, which award $2,000 to $25,000 to women entrepreneurs.\nIf your grant application is approved, the organization will dispense the grant money according to its rules. Grantors may also require you to submit ongoing financial records, give progress reports or demonstrate compliance with government regulations as you use the grant money.\nYou can search for grants with the Grants.gov search tool (although most of these grants are for entities that help business owners, not for business owners themselves). You can also find grants by contacting your state and local economic development agency, [Small Business Administration district office](;pageNumber=1), SCORE chapter or Small Business Development Center. END
 TITLE: What Is the Difference Between a Grant and a Business Loan? CONTENT: What Is a Business Loan?\n------------------------\nBusiness loans are money you borrow that must be paid back. There are short-term business loans (generally six to 24 months) or long-term loans (usually three years or longer). While grants are intended to achieve a mission, bank loans are intended to make money for the lender. Therefore, a lender's primary concern is whether you'll be able to repay the loan, usually with interest. Many loans are reserved for companies that have been in business for at least a year or two and have a solid business foundation. Because new businesses are riskier investments for lenders, loans to start a business are harder to find.\nYou can get business loans from banks, credit unions, nonprofit organizations and online lenders. Online lenders focus on smaller, short-term loans and usually have less stringent lending criteria than traditional lenders. For example, they often lend to newer businesses or those with lower credit scores. You typically complete an application online; if approved, loans may fund in a matter of hours. However, online lenders generally charge higher interest rates than traditional lenders.\nFor business loans of $350,000 or more, or for long-term loans, a traditional lender such as a bank or credit union is usually your best bet. These lenders generally require a business plan, financial statements, income tax records and other documentation. They want you to prove that your business is profitable and explain how you'll use the loan to make it even more profitable.\nDepending on how long you've been in business, lenders may consider your business credit, personal credit or both when assessing your business loan application. Check your business credit report, personal credit report and personal credit score before you begin looking for loans. Make sure your credit reports are accurate and take steps to improve your credit score if necessary. Compare offerings from several different lenders, including the annual percentage rate (APR), loan amounts available, loan terms and fees, to find the best options before you apply. END
 TITLE: What Is the Difference Between a Grant and a Business Loan? CONTENT: How to Decide Which Is Best for You\n-----------------------------------\nShould you apply for a loan or a grant? You might be a good candidate for a grant if:\n*   **Your business benefits your community or society.** For example, do you provide arts education in low-income communities or hire formerly incarcerated people?\n*   **You aren't in urgent need of money.** Finding and applying for grants can take a long time. Many grants are awarded annually; if you miss the application deadline, you'll have to wait until next year.\n*   **You're willing to accept the grantor's restrictions.** Be prepared to follow the granting organization's rules, such as regularly reporting on your progress or participating in publicity campaigns.\nA loan is probably a better solution if:\n*   **Your business is profitable and has good financials.** If you can demonstrate ability to repay the loan, you'll find many more options for loans than grants.\n*   **You need money fast.** You can apply for a loan whenever you want and often get money right away, depending on the lender.\n*   **You want to control how you use the money.** There are loans for different purposes—for example, working capital or real estate—but overall, you have more freedom in using the money than with a grant. END
 TITLE: What Is the Difference Between a Grant and a Business Loan? CONTENT: Alternative Sources of Business Funding\n---------------------------------------\nIn addition to loans and grants, consider these ways to finance your business.\n*   **Credit cards**: A business credit card can provide the purchasing power to accomplish your goals. For example, suppose your toy store needs inventory to prepare for a rush of holiday sales. You can use a credit card to buy the inventory, sell the goods and use the profits to pay the credit card bill. Business credit card issuers evaluate your personal credit, so make sure your credit score is in good shape before you apply.\n*   **Family and friends**: Why not see if the people who believe in you most can help your business grow? Family and friends may be able to lend you money or invest money in return for part ownership in your business. Always treat these transactions professionally; draw up paperwork that goes over the loan or investment details, and pay back any money you borrow.\n*   **Angel investors**: Angels are wealthy individuals who invest in promising companies, either individually or as part of a group. Often, angels offer business expertise as well as cash. You can find angels through referrals from other business owners or professionals.\n*   **Equipment financing**: Like an auto loan uses the vehicle you buy as collateral, an equipment loan uses business equipment to secure the loan. Online lenders and equipment financing companies offer equipment loans; many equipment manufacturers or resellers do too.\n*   **Peer-to-peer lending**: Peer-to-peer lending websites connect individuals seeking money with other individuals willing to lend it. This can be a good option if you don't need a lot of money.\n*   **Crowdfunding**: Sites such as GoFundMe and Kickstarter allow companies to solicit donations from individuals—usually to fund a product launch. You'll need to offer something in return for crowdfunding contributions and work hard to promote your campaign. END
 TITLE: What Is the Difference Between a Grant and a Business Loan? CONTENT: Finding the Right Financing for Your Business\n---------------------------------------------\nIf you can find a business grant for which you're qualified, there's no downside to applying—it's free money, after all. But since grants are very competitive, don't pin all your hopes on winning the award. Choose one of the solutions above to quickly get the capital you need; then apply for the grant as backup. When it comes to financing business growth, smart entrepreneurs always keep their options open. END
 TITLE: 10 Things First-Time Car Buyers Need to Know CONTENT: 1\\. Know Your Budget\n--------------------\nThe first step in buying a car is to set a budget. This will help you narrow your focus to cars within your price range before you fall in love with one that'll break the bank.\nTo create a budget, start by adding up all your monthly income and all your monthly expenses. Be sure to categorize your expenses as either fixed (such as your rent, utilities or student loan payments) or discretionary (such as going out to eat or buying new clothes). Once you've got an accurate idea of your expenses, you're likely to see several areas where you could cut back, which could leave you more money to put toward your monthly car payment.\nIn general, it's best to keep your car payment below 10% of your monthly take-home pay. But your monthly payment isn't the only factor to take into account when budgeting for a car. You'll also need to consider the ongoing expenses of owning a car, such as insurance, gas, repairs and maintenance.\nLoan terms are another factor to consider. Auto loan terms generally range from 36 to 84 months. The longer the loan term, the smaller your monthly payment will be, but the more you'll pay in interest over time. By choosing a less expensive car and putting down a larger down payment, you can opt for a shorter loan term and still keep your payments manageable. END
 TITLE: 10 Things First-Time Car Buyers Need to Know CONTENT: 2\\. Do Your Research\n--------------------\nOnce you have an idea of your budget, do some research to see what vehicles in your price range fit your needs. Researching online at local dealerships' websites or at automotive sites such as Edmunds.com, Autotrader or Kelley Blue Book will give you a good idea of the price you can expect to pay.\nWhile doing this research, you'll undoubtedly be tempted by great deals on car leases. Many drivers may prefer to own their car outright, but there are plenty of appealing advantages to leasing one. After all, you'll get a brand-new car, typically for a lower down payment and monthly payment versus buying. But limitations can be restrictive, and you may balk at putting money into a vehicle you'll eventually have to return. Ultimately, it's a decision that depends on your personal preferences and needs. END
 TITLE: 10 Things First-Time Car Buyers Need to Know CONTENT: 3\\. Explore Your Financing and Purchasing Options\n-------------------------------------------------\nWhen you've narrowed down your dream car list, it's time to think about how you'll finance the purchase. Unless you've saved up enough money to buy a car outright with cash, you'll need an auto loan to finance the purchase. According to Experian's State of the Automotive Finance Market from the fourth quarter of 2019, 84.6% of new cars and 54.6% of used cars were financed.\nYou can get financing through an auto dealership or through a third party such as a bank or credit union. However, because auto dealers will tack on additional fees for handling the loan, you can often get better terms from a bank or credit union. Getting preapproved for a loan through a third-party lender can also give you negotiating power to see if the dealer will match the loan terms.\nIf you're applying to multiple lenders to get the best loan terms, be sure to apply to all of them within a short time period. Applications made within a 14- to 45-day period (depending on the scoring model) will only count as one hard inquiry in your credit score. Once you're approved, the lender will give you proof of the loan terms and amount to show the dealership.\nWhen it's time to buy, your options for where and how to do it are greater than ever before. Depending on whether you're seeking a new or used car, you can buy from dealerships, dealership websites, online car-buying sites or private sellers. Some services will even have the car delivered right to your door. END
 TITLE: 10 Things First-Time Car Buyers Need to Know CONTENT: 4\\. Improve Your Credit Score\n-----------------------------\nKnowing your credit score before you seek financing for your purchase will give you an idea of which loan terms you're likely to qualify for. Start by getting a copy of your credit report and checking to make sure it's accurate. Then check your credit score.\nHaving good to exceptional credit (which lenders generally consider a FICO® Score☉ of 700 or above) makes it easier to qualify for favorable loan terms. Consumers with the highest credit scores financing a new car pay $522 a month on average while those with the lowest credit scores pay $562 on average, a $40 a month difference, according to Experian data.\nIf your credit score isn't in that range, and you don't need the car right away, consider postponing your purchase. In the meantime, you can work to improve your credit score and potentially earn access to loans with lower interest rates, which will save you money.\nTo help improve your credit score, continue to pay all your bills on time, pay down your debt and reduce your credit utilization ratio. For a quick boost to your credit score, consider Experian Boost™† , a free service that adds your on-time utility and telecom bill payments to your credit history. END
 TITLE: 10 Things First-Time Car Buyers Need to Know CONTENT: 5\\. Save for a Down Payment\n---------------------------\nHow big does the down payment on a car need to be? Just as with buying a home, most lenders like to see a down payment that's at least 20% of the car's price. (If you're buying a used car from a dealership, a 10% down payment is generally sufficient.)\nThere are several reasons a 20% down payment makes sense:\n*   New cars typically lose a portion of their value in the first year of ownership, so a down payment of 20% helps make sure you never owe more than your car is worth.\n*   The bigger the down payment, the smaller the loan you'll need.\n*   A bigger down payment generally earns you more favorable loan terms, which saves you money in the long run.\nMany dealership, automaker and automotive websites have online payment calculators you can use to arrive at the best down payment amount. By putting in various car prices and loan terms, you can estimate how different down payment amounts might affect your monthly payment and the amount of interest you'll ultimately pay. END
 TITLE: 10 Things First-Time Car Buyers Need to Know CONTENT: 6\\. Consider Buying Used\n------------------------\nIs your heart set on a shiny new car? You may have second thoughts when you discover just how much that new-car smell will cost you. According to Experian data, the average monthly payment for a new car is $161 dollars more than the average monthly payment on a used car ($554 vs. $393).\nBuying a used car is often a better option for first-time car buyers on a budget. Cars less than five years old typically have many of the same safety features and technological bells and whistles newer models do, but at a much lower cost. If a five-year-old car is too \"vintage\" for you, look for dealers selling two- to three-year-old cars that are coming off leases.\nYou can buy used cars from auto dealerships or from private sellers. Many car dealers and manufacturers sell \"certified pre-owned\" (CPO) cars. These are used cars that have undergone through inspections and reconditioning; they often come with limited warranties and other extras. When buying a CPO car, make sure you fully understand whether the car is covered by a warranty and, if so, what it covers. END
 TITLE: 10 Things First-Time Car Buyers Need to Know CONTENT: 7\\. Get the Car Inspected\n-------------------------\nWhether you're buying a used car from someone you know or from a dealership, you should always have a trusted mechanic inspect it first. This is called a pre-purchase inspection and is a service most auto repair shops offer. You may have to pay a few hundred dollars for this service, but that's money well spent if it keeps you from buying a car with major issues under the hood.\nEven a CPO car should undergo an independent inspection before you buy it. CPO inspections tend to focus on major systems and obvious problems. Independent mechanics can point out smaller issues, poorly done repairs and potential future problems. If the car has been inspected by the dealership, get a written report of the inspection to give your mechanic.\nTo find a mechanic, ask your friends and family for recommendations or look at online review sites for highly rated mechanics near you. Mobile mechanics who come to you to inspect the car are also an option, but taking it to an auto repair shop allows the mechanic to inspect it more thoroughly. If the seller objects to an independent inspection, consider that a red flag. END
 TITLE: 10 Things First-Time Car Buyers Need to Know CONTENT: 8\\. Negotiate the Price\n-----------------------\nBoth dealerships and private sellers expect you to haggle over the price of the car. You'll have more wiggle room with a used car, since it doesn't have a set MSRP (manufacturer's suggested retail price). Even with a new car, you can generally negotiate your way to a significant savings off the sticker price.\nTo drive a hard bargain, find out how much the car is worth by researching its value on automotive websites. Be sure to take into consideration any \"extras\" the car has, such as leather seats or a top-of-the-line entertainment system. When you arrive at an estimated average price, take 10% to 20% off that figure and make the seller an offer. You'll have more leverage if you are preapproved for a loan or if you're paying in cash.\nTiming can help you get a better deal too. If you're buying new and don't need the car right away, try waiting until the last few months of the year to go shopping. That's when dealerships typically offer special incentives such as cash back or promotional 0% APR financing so they can clear cars off the lot to make way for next year's models. Can't wait that long? If you can hold out until the end of the month, salespeople eager to make their monthly sales quotas are often quite willing to bargain. END
 TITLE: 10 Things First-Time Car Buyers Need to Know CONTENT: 9\\. Read the Contract Carefully\n-------------------------------\nBuying a car can be a lengthy and stressful process. By the time you have a contract in hand, you're probably so eager to get behind the wheel that you're ready to sign the contract without even glancing at it. Unscrupulous car dealers count on this and may pad contracts with extra charges you never agreed to or change the terms you discussed.\nWhen you sign a contract, you're entering into a legal agreement with the seller—and once you put your name on the dotted line, it's often very difficult or impossible to renege (and if you can, you'll almost certainly pay a fee). Whether you're buying from a dealer or a private party, take as much time as you need to read the contract in full before you sign. Don't be shy about asking questions or calling a trusted friend or advisor if there's anything you don't understand. END
 TITLE: 10 Things First-Time Car Buyers Need to Know CONTENT: 10\\. Enjoy Your New Car\n-----------------------\nCongratulations—you're a car owner! Buying your first car may be the first major purchase you ever make. There's a lot to consider, but following the simple steps above can help ease the stress. With some careful budgeting, research and planning, you'll have the confidence to negotiate the best deal and get the car of your dreams without getting taken for a ride. END
 TITLE: Will Changing Your Name Impact Your Credit? CONTENT: Does Getting Married Affect Credit?\n-----------------------------------\nThe act of getting married has no effect on your credit. Even after marriage, your credit report remains separate from your spouse's—they don't get merged into one \"couple's\" credit report. Your credit report is based on your individual financial behavior; it includes any accounts that are in your name only, as well as any you cosigned.\nYour spouse's financial habits will affect your credit, however, if you open credit accounts or take out loans together. For example, if you take out a car loan or mortgage in both of your names, or get joint credit cards, those loans and credit cards will be included in each of your credit reports. As long as you both manage them responsibly, joint accounts can help the spouse with poorer credit increase their credit score. END
 TITLE: Will Changing Your Name Impact Your Credit? CONTENT: Will My Credit Score Change After Changing My Name?\n---------------------------------------------------\nDoes a new name mean you get a new credit score? Unfortunately for anyone who's hoping for a do-over, changing your name doesn't reset a poor credit score or wipe out your existing credit report to let you start anew. Your new name simply gets added to your existing credit report.\nWhether you're married or single, and no matter what your name is, the key factors that affect your credit score are:\n*   **Payment history**: Making on-time payments accounts for 35% of your FICO® Score☉ , the credit score most commonly used by lenders.\n*   **Credit utilization**: Your credit utilization ratio measures how much of your available revolving credit you are using compared to the total amount you have available. In the FICO model, it accounts for 30% of your credit score.\n*   **Length of your credit history**: How long you have had credit makes up 15% of your FICO® Score; typically, a longer history means a better score.\n*   **Credit mix**: Having a diverse mix of installment credit (such as car loans and mortgages) and revolving credit (such as credit cards and lines of credit) can improve your credit score. Credit mix accounts for 10% of your FICO® Score.\n*   **New credit**: The number of recently opened credit accounts and the number of hard inquiries lenders have made on your credit score accounts for 10% of your FICO® Score. Too many new accounts or hard inquiries can hurt your score. END
 TITLE: Will Changing Your Name Impact Your Credit? CONTENT: Do I Need to Report My New Name to the Credit Bureaus?\n------------------------------------------------------\nThere's no need to contact the major credit bureaus (Experian, TransUnion and Equifax) to tell them your new name. Instead, start by changing your name with the Social Security Administration. Next, change the name on your driver's license or other government ID, as well as your passport, if you have one.\nOnce these official changes are made, make sure every credit card company, bank and lender where you have an account knows your new name. After the Social Security Administration and your creditors are made aware of your name change, your credit reports will automatically update to reflect your new name. Because each creditor has its own schedule for how frequently it reports to the credit bureaus, it may take a few months for all the accounts on your credit report to update. END
 TITLE: Will Changing Your Name Impact Your Credit? CONTENT: Credit by Any Other Name\n------------------------\nA few months after your name change, once all the dust has settled, it's a good idea to review your credit report to make sure your new name has been added to all of your accounts. If for some reason it hasn't, check with your creditors to make sure they're reporting your new name. (Keep in mind that your old name will remain on the credit report as a former name.) If you open any joint credit accounts after getting married, checking your credit score regularly can keep you up to date on how the new accounts are affecting your credit either positively or negatively. END
 TITLE: What Credit Score Do You Need for a 0% APR Credit Card? CONTENT: Good to Excellent Credit Is Needed for 0% APR Offers\n----------------------------------------------------\nTo qualify for 0% APR credit card offers, you'll need a good to excellent credit score. While that score range can vary depending on which credit scoring model the credit card issuer uses, FICO® Scores are used in most credit decisions, so let's focus on those.\nA FICO® Score of 800 to 850 is considered exceptional; a FICO® Score in the 740 to 799 range is considered very good; and a FICO® Score of 670 to 739 is considered good. The credit score you need to qualify for a 0% APR credit card will vary by credit card issuer and even by card, but anything below 670 could make the approval process significantly more challenging. If your score is near or above 800, however, you're much more likely to qualify for the card of your choice. END
 TITLE: What Credit Score Do You Need for a 0% APR Credit Card? CONTENT: When Does It Make Sense to Get a 0% APR Credit Card?\n----------------------------------------------------\nDoes getting a 0% APR credit card make sense for you? Before you apply for a 0% APR credit card, here are some factors to consider.\n*   **How long is the introductory 0% APR period?** Credit cards offering 0% APR come with a catch: That 0% interest rate doesn't last forever. It's a promotional rate good for a limited time. Legally, the promotional period must last at least six months (unless you are over 60 days late on a payment), but you can find cards with promotional periods as long as 21 months. If you're planning to transfer a high balance from another credit card with a high interest rate to the 0% APR card, make sure you'll be able to pay off the balance during the introductory period (or at least make a significant dent in it).\n*   **What types of transactions does the introductory 0% APR apply to?** Don't assume that the 0% interest rate applies to every transaction. It generally applies to purchases, balance transfers or both, but won't apply to cash advances. To confirm the interest rates charged for different transactions, review the terms of the credit card agreement. (You can find these on the card's application page online or in the offer mailer.)\n*   **What APR will you pay once the promotional period ends?** After the introductory 0% APR expires, the card issuer will start charging a standard APR. Look at the credit card terms to find the standard APR; it may be expressed as a range, since you may not know the specific interest rate you qualify for until you're approved.\n*   **What do you want to use the card for?** A 0% interest credit card can be a useful tool for transferring balances or making large purchases. If you transfer the balance on a high-interest credit card to a 0% APR card, that balance won't incur any new interest charges until the promotional period ends. Ideally, you'll pay off the balance before it starts accruing interest. You can also use a 0% APR credit card to finance an expensive purchase, like furniture for your new apartment or a once-in-a-lifetime vacation, and pay off the balance over time without accruing interest.\n*   **Are there any fees?** Some cards charge annual fees or foreign transaction fees on purchases made outside the U.S., which can add up if you use the card on international trips. If you plan to use your card for balance transfers, you'll likely incur a balance transfer fee of 3% to 5% of the amount you're transferring. (Refer to the card terms for details.) END
 TITLE: What Credit Score Do You Need for a 0% APR Credit Card? CONTENT: How Does a 0% APR Affect Your Credit Score?\n-------------------------------------------\nThe interest rate that a credit card charges has no direct effect on your credit score. However, having a new 0% APR credit card in your wallet could indirectly affect your credit score in several ways.\n*   **Reduced debt**: If you can transfer a high balance and stop paying interest on that balance, you may find it easier to pay down debts, which can help improve your credit score and your financial situation overall.\n*   **Credit** : If you only carry a student loan or car loan and no credit cards, adding a credit card will improve your credit mix, which is a factor in your credit score.\n*   **Hard inquiry**: The hard inquiry generated when the credit card issuer checks your credit report will temporarily lower your credit score slightly. If the 0% APR credit card is one of many credit cards you've applied for within a short time, credit issuers may take it as a sign that you're in financial trouble and turning to credit cards to pay your expenses.\n*   **Credit utilization ratio**: Getting a new credit card increases the amount of credit available to you, which can help to reduce your credit utilization ratio and improve your credit score. However, if that 0% APR tempts you to rack up a big balance on your new credit card, your utilization rate will rise and could have a negative impact on your credit score.\n*   **Missed payment**: A 0% APR card means no interest—not \"no payments.\" Some credit card users assume they don't have to make a monthly payment on a 0% interest card. That's only true if your balance is also zero. Just as with any credit card, you must pay at least the minimum monthly payment on time to keep your account current. Otherwise, you'll not only hurt your credit score, but could also lose your 0% APR long before it's due to expire. END
 TITLE: What Credit Score Do You Need for a 0% APR Credit Card? CONTENT: Consider Improving Your Credit Score Before Applying\n----------------------------------------------------\nJust because you received an offer for a 0% APR credit card in the mail or online doesn't necessarily mean you'll be approved. If your FICO® Score is at the low end of \"good,\" taking steps to improve it before you apply for the card will give you a better chance of getting approved.\nFirst, check your FICO® Score. If it's lower than you expected, get a free credit report to look for any issues that need to be resolved, such as incorrect or missing information.\nOnce you've reviewed your credit report and score, follow these tips to improve your score:\n*   Focus on bringing any late accounts current.\n*   Be diligent about making all of your payments on time. If you occasionally forget to pay your credit card bills, use autopay to ensure you never miss a payment going forward.\n*   Pay down credit card balances and other debts. Keep your credit utilization ratio, or percentage of available credit you're using, under 30% to avoid hurting your credit score—or in single digits for the best scores.\nAlso consider signing up for Experian Boost™† to help speed up the process of improving your FICO® Score. This free service gives you credit for on-time utility and cellphone payments, which could give your FICO® Score an immediate bump. END
 TITLE: What Credit Score Do You Need for a 0% APR Credit Card? CONTENT: The Bottom Line\n---------------\nA 0% APR credit card can be a valuable addition to your financial toolkit, helping you pay down high-interest debt without accruing more interest. The catch: You need good to excellent credit to get that card. By monitoring your credit score regularly and practicing good credit habits, you can keep your credit score in good shape—and help ensure more 0% APR credit card offers in your future. END
 TITLE: How to Start an Online Business CONTENT: Decide on a Business Idea That Fills a Need\n-------------------------------------------\nThe right online business idea matches your skills and interests with what people want to buy. There are two basic types of online businesses (selling a product or selling a service) and two basic markets (consumers or businesses).\nPopular online businesses that sell products may try to find buyers for handmade crafts, commissioned art, used items (such as vintage clothing or collectibles) or new products you purchase and resell.\nPopular online services include freelance writing or editing, website design, graphic design, photography, virtual assistant services, tutoring, coaching, personal training, accounting\/bookkeeping or teaching skills (such as giving music or art lessons).\nYour options will be limited only by your own abilities and market demand. How do you determine the latter? To assess whether there's a market for your business idea, conduct market research. END
 TITLE: How to Start an Online Business CONTENT: Complete Some DIY Market Research\n---------------------------------\nBefore you spend time and money launching your business, do some research to make sure it's a good idea that has a customer base. If they fit your target market, friends and family can provide initial feedback; you can show them product samples or ask how much they'd pay for what you're selling.\nYour loved ones want to be supportive, of course, but they may not be totally honest out of fear of disappointing you. That's why it's important to do some outside research. Ask yourself the following questions, and answer truthfully:\n*   **Will this business fill a need in the marketplace?** It can be hard to break into a competitive market unless you're offering something truly unique. There are hundreds of companies selling iPhone accessories on Amazon, for instance, and it could be quite difficult to stand out.\n*   **Who is my competition?** What makes my business different and better? Perhaps you have unique expertise, a one-of-a-kind product or a compelling personal story.\n*   **What is my target market?** Is it big enough to support my business? The more narrowly you can define your target market, the better. Selling to \"mothers\" is too broad; selling to \"suburban moms ages 20 to 30 with children under 5 and high disposable income\" is better. Use data from the SBA, Bureau of Labor Statistics, National Bureau of Economic Research, USA.gov and the Census Bureau to research potential markets.\n*   **How will I make a profit?** Writing a business plan can help you estimate the cost of providing your product or service and the price you should charge to make a profit. This doesn't have to be a full-length business plan; however, creating a \"lean\" business plan or \"business model canvas\" can't hurt. (You'll find plenty of templates online.)\nYou can get free advice and assistance with market research and other aspects of starting an online business from SCORE or your local Small Business Development Center (SBDC). END
 TITLE: How to Start an Online Business CONTENT: Start Small and Build From There\n--------------------------------\nYou don't need your own website to start an online business. Whether you sell products or services, there are dozens of online marketplaces where you can sell your wares. These marketplaces already get tons of traffic; many also offer marketing, sales and payment tools that can make running your online business easier. Once your business gains traction, you can always build your own website.\nIf you sell products, consider these marketplaces:\n*   Etsy to sell handmade, new or collectible products to consumers.\n*   EBay to sell collectibles, used products and new products to consumers or businesses.\n*   [Amazon](;) to sell products to consumers or businesses.\n*   Nextdoor or Facebook Marketplace to sell new or used products to local consumers.\nAre you offering freelance services to businesses? Sites such as Guru, PeoplePerHour, Fiverr, Upwork and Freelancer let you sell a wide variety of services, including writing, coding, web design, virtual assistant, marketing, accounting, legal services and more.\nThere are also industry-specific online platforms, such as Chegg or Wyzant for tutoring services; Udemy or Skillshare for creating and selling online courses; and 99Designs or DesignCrowd for graphic designers.\nLast but not least, you can sell just about anything on Craigslist.\nWhen choosing an online platform, ask:\n*   Is the site popular with your target market?\n*   Is it easy to use?\n*   Does it provide any tools to help promote and run your business?\n*   How much does it cost (fees, subscriptions, commissions, etc.)?\nThe business you run doesn't have to start out as a full-time commitment, either; in 2020, 15.8 million Americans had a \"side gig\" or part-time business. Eventually, you may be able to transition to running the business full time and living off the proceeds. END
 TITLE: How to Start an Online Business CONTENT: Find Ways to Market and Advertise Your Business\n-----------------------------------------------\nMarketing your business is key to getting customers and doesn't require a lot of time or money. Try these ideas:\n*   **Set up a social media presence** for your business on the platforms your potential customers frequent. For consumers, that's probably Facebook, Instagram, YouTube or Nextdoor; if you're targeting businesses, use LinkedIn. Paid advertising on social media can also be an affordable way to target specific audiences.\n*   **Answer questions people ask** on LinkedIn, Quora, Nextdoor and Facebook groups to get noticed and promote yourself as an expert.\n*   **Ask satisfied customers to refer others** who might be interested in your product or service.\n*   **Ask customers to sign up for marketing emails** from your business. (Be sure to comply with FTC regulations.)\n*   **Get publicity** by connecting with bloggers, online experts or other influencers to test or review your products or otherwise promote your business to their audience.\n*   **Buddy up** with other freelancers to refer business to each other or share projects. For example, if you're a web designer, you could work with a graphic designer and a copywriter to make stellar websites.\n*   **Network** both online and off. Joining associations, local business groups or online business groups is a great marketing tool, especially if you sell to businesses. END
 TITLE: How to Start an Online Business CONTENT: Succeed With an Online Business\n-------------------------------\nNo matter how small your online business is, open a business bank account and get a business credit card. Separating your business and personal finances simplifies bookkeeping and taxes and demonstrates you're a real business, which will be important if your business grows and needs a business loan. If the business credit card reports to the business credit bureaus, paying your bill on time and maintaining a low balance can help build a good business credit score.\nAs a new, one-person business, your personal credit is also a factor when applying for a business loan. Set up free credit monitoring to conveniently keep an eye on your credit score. After all, you're going to be plenty busy with your new online business. END
 TITLE: Should I Max Out My HSA Contributions? CONTENT: What Is an HSA?\n---------------\nAn HSA is a tax-advantaged savings plan you can use to cover certain health care costs. You put pretax income into the plan and can withdraw it tax-free if you use it for qualified medical expenses. These include health insurance deductibles, copayments, coinsurance, dental and vision care, prescriptions, over-the-counter medications and more.\nYour employer may offer an HSA, and may even contribute to it or match a percentage of your contributions. You can also open an HSA yourself with a financial institution—such as a bank, credit union or institution that manages IRAs—that serves as an HSA trustee.\nTo open an HSA, you must participate in a high-deductible health insurance plan (HDHP) and have no other health insurance (although there are exceptions made for specialized health insurance such as dental and vision care). For 2021, the IRS defines an HDHP as one with a deductible of $1,400 or more for an individual or $2,800 or more for a family.\nHSAs are similar to flexible spending accounts (FSAs) that allow account holders to set aside pretax money and withdraw it tax-free to use for health care and dependent care expenses. However, there are some important differences between the two:\n*   Unlike HSAs, FSAs are only available through your employer.\n*   If you don't spend your FSA money by the end of the plan year, you can lose it—although some employers give you a grace period of up to two and a half extra months to use it or let you roll over up to $550 for the following year. If you don't use your HSA money, however, 100% of the funds roll over to the next year. The amount rolled over doesn't count toward the following year's contributions. Recent federal law allows more flexibility with FSA limits if your employer chooses to adopt them.\n*   Since your FSA is tied to your employment, you may lose the funds when you retire or leave your job. Your HSA funds always belong to you, even if you retire or leave your employer.\n*   FSAs can be used only for qualified expenses. HSA money can be used for non-qualified expenses, but the amount you withdraw will be subject to income tax as well as a 20% additional tax. Once you're 65, you can use your HSA for non-qualified expenses. You'll still pay taxes on these withdrawals, but no additional tax penalties.\n*   Unlike FSAs, HSAs can be invested in mutual funds or other investment vehicles and grow tax-free. END
 TITLE: Should I Max Out My HSA Contributions? CONTENT: How HSAs Can Save You Money\n---------------------------\nHSAs offer triple tax benefits. You can contribute to an HSA through pretax payroll deductions or deduct your contributions on your federal income taxes. Interest, dividends or capital gains on your HSA are not taxed, and you can withdraw the money tax-free for qualified medical expenses.\nAlthough HSAs can't be used to pay health insurance premiums, they can save you money on health insurance in other ways. HDHPs have lower premiums than traditional health insurance, but can ultimately be more expensive if you have a costly health care event and have to pay a lot out of pocket to meet your deductible. By helping you build an emergency health care fund, an HSA reduces the financial risk of an HDHP.\nFor example, if you're comparing a traditional family health insurance plan that has a $466 monthly premium and a family HDHP with a $395 monthly premium (the average costs for such plans in 2020), opting for the HDHP would save you $852 a year. If your employer contributes to your HSA, you'll enjoy even more financial benefits: In 2020, the average employer contribution to an HSA for family coverage was $1,018.\nWhen you do withdraw HSA funds for health care expenses, you'll be paying with tax-free money. Don't need to use the money? It will keep accumulating in your account for when you do need it. END
 TITLE: Should I Max Out My HSA Contributions? CONTENT: Should You Contribute the Maximum to Your HSA?\n----------------------------------------------\nThe 2021 maximum HSA contribution is $3,600 for individual HDHP coverage and $7,200 for family HDHP coverage. (Any employer contributions count towards these maximums.) If you'll be 55 or older by the end of the tax year and aren't enrolled in Medicare, these limits increase by $1,000. So, should you max out your HSA?\nIf you can afford to contribute the maximum to your HSA while meeting your other financial goals, there's no downside to doing so. If you're trying to choose between funding your HSA and your 401(k), the decision is more complicated. Start by taking advantage of any \"free money\" offered by your employer.\n*   If your employer contributes to your HSA, open an HSA and fund the minimum amount needed to get the contribution.\n*   If your employer matches your HSA contribution, contribute enough to max out the match.\n*   If your employer matches your 401(k), contribute enough to max out that employer match.\nWhen weighing your options, make sure to look at the big picture, including the rate at which your employer matches contributions to your HSA or 401(k), and whether you're fully vested in your 401(k) or plan to stay with your employer long enough to attain it. A fully vested employee who can take advantage of a generous contribution match from their employer might prioritize their 401(k) over their HSA.\nIf you can afford to contribute more to your HSA, making the maximum contribution each year can be a smart retirement savings strategy. An HSA lets you save for future health care expenses without paying taxes when you withdraw the money, as you'd do with a 401(k). It can also ensure you don't have to tap your retirement funds early for unexpected medical expenses—and pay the associated taxes and penalties. (Some 41% of Americans who withdrew 401(k) funds in the pandemic did so to pay medical expenses.)\nOf course, you don't have to max out your HSA to see benefits. Put $50 or $100 into your HSA each month starting in your 20s and let it grow until retirement. Depending on how you invest the HSA, you could be well on your way to the $295,000 it's estimated a couple retiring today will need to pay for health care in retirement. END
 TITLE: Should I Max Out My HSA Contributions? CONTENT: Make the Right Decision About Your HSA\n--------------------------------------\nWhen deciding whether to contribute the maximum to your HSA, be sure to consider your budget, other financial goals such as buying a home, whether you need to pay down debt or build up an emergency fund, and the potential investment returns from the HSA compared to your 401(k). There's no one-size-fits-all answer to the question of maxing out your HSA, but by carefully assessing your current financial situation and your projected future needs, you can make the best decision for yourself and your finances.\nWhether you're getting your finances in order for a short-term or long-term goal, it's important to make sure your credit stays in great shape as well. Get your free credit report through Experian to go over your credit and see where you stand. END
 TITLE: Why You Should Notify Your Credit Card Company When You Travel CONTENT: Credit card companies are always on high alert for potential fraud. If you live in Peoria and your credit card company sees your card being used to make purchases in Paris, alarms may go off. That's a good thing if it prevents a thief from using your stolen credit card. It's not so good if your credit card is denied at the Louvre ticket office and you miss your chance to see the \"Mona Lisa.\" Having a transaction questioned or denied can put a serious dent in your trip. END
 TITLE: Why You Should Notify Your Credit Card Company When You Travel CONTENT: How to Set a Travel Notice\n--------------------------\nSetting a travel notice is easy to do. Simply visit your credit card company's website to get instructions. Many card issuers allow you to set up a notice on their website or using the card's mobile app. Others require you to call by phone to notify them.\nSome credit cards, such as American Express, don't allow you to set up a travel notice. American Express says the practice isn't necessary because its fraud detection capabilities can recognize when you're traveling overseas. However, they still recommend making sure your contact information is up to date in case they need to contact you.\nIf you do set up a travel notice, you'll be asked to provide the dates you'll be traveling and where you're going. If you're traveling to multiple countries, make sure you know all of your destinations and dates before you start the process of setting up a travel notice. If your flight has a layover in a country that's not your final destination, let the card issuer know about that too—you never know when you might need to use your credit card in the airport.\nIf you haven't already done so, it's a good idea to download your cards' mobile apps before you head out on your trip. Having the app handy can make it easier to contact the card issuer, track your spending or cancel a lost card during your travels. END
 TITLE: Why You Should Notify Your Credit Card Company When You Travel CONTENT: What to Consider When Traveling With a Credit Card\n--------------------------------------------------\nWhich credit cards are worthy of a spot in your wallet when you're headed overseas? To make the best choice, consider these factors:\n**Is the card accepted at your destination?** In general, Visa and Mastercard are the credit cards most widely accepted outside the U.S. Just as in the U.S., American Express and Discover cards are accepted at fewer locations overseas, so if you bring one of those cards, make sure you have a Visa or Mastercard in your wallet as a backup. The credit card issuer's website may tell you where the card is accepted outside the U.S.; if you can't find that information or are traveling to an out-of-the-way location, contact your credit card company to see if the card is accepted there.\n**Does the card charge foreign transaction fees?** Many cards impose a foreign transaction fee (generally 1% to 3% of the transaction) when you use them outside the U.S. Some merchants use what's called \"dynamic currency conversion\" to charge your purchase in U.S. dollars. This eliminates foreign transaction fees, but the currency conversion fee is generally much higher. Your best bet? Look for a credit card that doesn't charge foreign transaction fees.\n**Does the card include travel insurance?** Many credit cards offer travel insurance perks. Will you be renting a car? If you use a card that includes free rental car insurance, you can decline the optional (and expensive) coverage offered by the rental company. Other cards offer roadside assistance you can call if you have car trouble.\nUsing the right credit card can help protect you from both major and minor disasters. Many credit cards provide trip delay coverage, trip interruption coverage or trip cancellation coverage, which can reimburse you for covered delays, cancellations or trips cut short by illness or natural disasters. Some cards include baggage delay insurance, which can reimburse you if your baggage is delayed beyond a certain number of hours. Others provide 24\/7 emergency assistance, such as medical or legal referrals, which can be invaluable when you're traveling.\nFor any type of travel insurance coverage, make sure you fully understand what is covered and what you have to do to qualify for coverage. For example, if you want to be covered for baggage or trip delay insurance on a flight, you'll need to pay for your flight with that card.\n**Does the card offer travel rewards?** If you have a credit card that offers travel rewards, try using your points or miles to book your trip. You may be able to use rewards to get complimentary or upgraded flights or hotel stays, or credits towards shopping or dining at your hotel or resort.\nMany travel rewards credit cards also offer extra travel benefits like priority boarding or the use of airport lounges. Check your card's fine print ahead of time to see what's available to you so you can make the most of these perks.\nDuring your trip, using your travel rewards cards for purchases such as meals or entry to museums and attractions can help maximize your travel rewards, earning more miles or points toward your next trip.\nIt's always wise to bring more than one credit or debit card on a trip, just in case one is lost, stolen or left behind in a restaurant or shop. Don't forget to check your cards' expiration dates—you don't want to be stuck overseas with a card that expires in the middle of your trip. END
 TITLE: Why You Should Notify Your Credit Card Company When You Travel CONTENT: Safe and Secure Travels\n-----------------------\nOnce you've chosen the credit cards to bring along, protect yourself by putting the account numbers and customer service phone numbers for each card into your phone. If your card is lost or stolen, you can quickly report it without having to search online for a phone number—which can be tough to do if you're somewhere with spotty Wi-Fi or cellular coverage.\nInforming your credit card company of your upcoming travel plans may seem unnecessary, but it could save you headaches you'd rather not encounter on vacation. Doing so ahead of time helps ensure your trip is memorable for all the right reasons. END
 TITLE: How Can Millennials Get Mortgage Ready? CONTENT: Get Organized\n-------------\nFirst, see where your finances currently stand. Start by obtaining your credit reports and credit scores. You can get a free credit report and free FICO® Score☉ from Experian and can get one free credit report every 12 months from Experian, TransUnion and Equifax at AnnualCreditReport.com. It's a good idea to check your credit report with all three credit bureaus so you can spot any discrepancies.\nNext, pull together your financial data. Collecting all your financial information will prepare you to fill out mortgage applications and provide the data that lenders will request.\nMake a list of all your loans (such as student loans and car loans), the lenders who service them, as well as your monthly payment amounts. Then make a list of all your assets (including checking and savings accounts), retirement plans such as 401(k)s and IRAs, and any other savings you have. Finally, review your credit cards, the balances on each, and any other outstanding debts.\nPersonal accounting apps or websites can help you gather all your financial data in one place and track your spending so you can better manage your money. END
 TITLE: How Can Millennials Get Mortgage Ready? CONTENT: Set Your Goals\n--------------\nOnce you've gathered all your financial information, it's time to identify your financial goals. For example, in addition to buying a home, you might want to pay off your student loans and save for a vacation. Figure out by what time you want to achieve the goal and how much will it cost to do so.\nFinally, prioritize your goals based on what's most important to you. Depending on your current financial situation, this may require some tradeoffs. If you want to pay off your student loan debt, buy a home and save for a vacation, you may need to put your vacation plans on the back burner for a while to make the other goals a reality. END
 TITLE: How Can Millennials Get Mortgage Ready? CONTENT: Create a Budget\n---------------\nAfter you've set your financial goals, figure out your current income and expenses so you can make a budget, which is key to achieving your financial goals. When getting ready for a mortgage, your budget will have a big impact on your down payment and determining monthly payments you can afford. Here's how to create a budget:\n1.  **Estimate your monthly net income.** This is the pay that's deposited in your bank account after taxes and other paycheck deductions. If you get a regular paycheck, this is easy to do. If you rely on freelance income, tips or otherwise unpredictable sources of income, make the best estimate based on past income.\n2.  **List all your monthly expenses.** Some, such as rent or car loan payments, will stay the same each month; others, such as groceries and entertainment, will vary from month to month. Review your bank transactions for the past year to come up with a realistic estimate.\n3.  **Determine how much you have left.** Once you know your income and expenses, see much money you have left over each month to put toward your goals. If you don't have enough extra money to reach the goals you've set, you'll need to reduce your expenses, increase your income, adjust your goals or do all three.\n    This may mean taking in a roommate, or cutting back on entertainment to save money. You may consider asking for a raise or getting a second job to make more money. Or, you could adjust your homeownership goals by looking for a more affordable home or accepting that it will take longer than you planned to save up your down payment. END
 TITLE: How Can Millennials Get Mortgage Ready? CONTENT: Work on Paying Down Debt\n------------------------\nOver the life of a mortgage loan, even a small difference in interest rates can add up to tens of thousands of dollars in savings. A good credit score is key to getting the best interest rate and maximizing your savings. You can make a positive impact on your credit score by focusing on eliminating debt and consistently making your payments on time.\nMortgage lenders also heavily consider your debt-to-income ratio (DTI) when deciding whether to approve you and, if approved, what rates to offer you. DTI considers all your monthly debt obligations, so paying off car loans or student loans can help you improve this number. When reducing your debt, focus on paying down any debts that are in collections, as these can severely impact your credit score and chance of securing a mortgage. Once these debts have been brought current, work on eliminating credit card debt.\nFinally, set up automatic bill payments so you never miss a due date. Paying your bills on time is a crucial habit to form. All it takes is one late or missed payment to drag down your credit score—and those late payments will remain on your credit report for seven years. END
 TITLE: How Can Millennials Get Mortgage Ready? CONTENT: Keep Your Credit Utilization Ratio Low\n--------------------------------------\nAs you work on reducing your debt, try to keep your credit utilization ratio as low as possible. Your credit utilization ratio is the amount of revolving credit (such as credit cards) you're using compared with the total amount of revolving credit available to you. For example, if you have three credit cards, each with a credit limit of $3,000, you have $9,000 in total available credit. If you carry a balance of $2,000 on each card, you are using $6,000 of that credit, or 66.67%.\nTo help improve your credit score, always keep your credit utilization ratio under 30% and ideally under 10%.\nUsing our example above, carrying a $2,700 total balance across all three credit cards would give you a credit utilization ratio of 30%. However, you need to consider your per-card credit utilization ratio as well as the overall ratio. If all $2,700 of that balance is on one card, you're well over the 30% credit utilization ratio on that card, which could hurt your credit score. Make it a rule never to spend more than 10% of the available credit on each card, and you're more likely to see a positive impact. END
 TITLE: How Can Millennials Get Mortgage Ready? CONTENT: Avoid Applying for New Credit\n-----------------------------\nSpeaking of credit, you should avoid opening any new credit accounts while you're getting mortgage ready. Whenever you apply for credit, the credit issuer will check your creditworthiness. This generates a hard inquiry on your credit report, which can temporarily hurt your credit score. The point impact of a hard inquiry may be small (less than five points), but it could drop you down into a lower credit score range.\nOpening new credit accounts also makes it easier to take on additional debt just as you're preparing to apply for a mortgage, which is never a good idea. END
 TITLE: How Can Millennials Get Mortgage Ready? CONTENT: Check Your Credit Regularly\n---------------------------\nAs you pursue your goal of becoming mortgage ready, make it a point to check your credit report at least once a year. You can get a free credit report from Experian and receive one free credit report every 12 months from all three major credit bureaus (Experian, Equifax and TransUnion) by visiting AnnualCreditReport.com. As you work to become mortgage worthy, monitoring your credit score is an important piece of the puzzle. END
 TITLE: How to Finance Your Child’s Private School Education CONTENT: Look Into Education Savings Accounts\n------------------------------------\nIf you already know you want your child to go to private school someday, you or other family members, such as grandparents, can plan ahead and open an education savings account early. The younger your child is when you open the account, the more time it will have to grow, and the more options you'll have for private school (or even college). END
 TITLE: How to Finance Your Child’s Private School Education CONTENT: Compare the Schools in the Area\n-------------------------------\nTo budget for private school tuition, start by investigating private schools in your area. Make a shortlist of the ones you're interested in and research their tuition costs and related expenses. For example, some schools expect parents to make financial contributions on top of tuition or to volunteer for a certain number of hours. If doing that is not realistic for you, you'll need to look for a school that better fits your situation. END
 TITLE: How to Finance Your Child’s Private School Education CONTENT: Find Out if Financial Aid Is Available\n--------------------------------------\nMany private schools offer financial aid to low- and middle-income families. Depending on your financial situation, you may qualify for help with some or all of the tuition costs. Even partial financial aid helps, so don't leave any money on the table.\nSome schools also offer tuition discounts for families that have more than one child attending the school or belong to the house of worship affiliated with the school. Check into the school's financial aid application deadlines and find out if you'll need to reapply every year to receive the aid. END
 TITLE: How to Finance Your Child’s Private School Education CONTENT: Learn About Scholarships\n------------------------\nScholarships aren't just for star students. They also may be available to students with financial need or students who meet other criteria. Ask the schools you're interested in what scholarships they offer and see if they can refer you to third-party organizations that have provided scholarships to their students in the past. For example, many community organizations, service organizations, religious communities and even large employers offer scholarships for K-12 students.\nYour child also may be eligible to apply for many state and regional scholarship programs. For instance, the Black Student Fund provides K-12 financial assistance to black students in Maryland, Virginia and Washington, D.C. The AAA Scholarship Foundation provides income-based scholarships to pre-K through high school students in Arizona, Florida, Georgia and Nevada.\nOther resources:\n*   The National Association of Independent Schools' list of scholarships.\n*   A Better Chance refers academically talented students of color entering grades four through nine to its member schools and helps them access scholarships and financial aid.\n*   The Children's Scholarship Fund provides scholarships to K-8 children from low-income families. END
 TITLE: How to Finance Your Child’s Private School Education CONTENT: Set Up a Payment Plan\n---------------------\nPaying your child's annual tuition in one lump sum can be a daunting expense. Fortunately, most private schools offer payment plans you can use to split up tuition into quarterly or even monthly payments. This can make the cost more manageable and easier to fit into your budget. Find out if the schools on your list offer payment plans or are willing to set one up for you. END
 TITLE: How to Finance Your Child’s Private School Education CONTENT: Consider a Loan\n---------------\nThere are two kinds of loans you can use to pay private school tuition:\n*   **Education loans**: Education loans let you borrow up to 100% of the school-certified cost of your child's K-12 private school education. These loans have variable interest rates, so your payments may rise or fall over the life of the loan.\n*   **Personal loans**: Personal loans can be used for any purpose you choose, including K-12 tuition. However, personal loans can have higher interest rates than education loans, and some charge prepayment penalties if you pay off the loan early.\nInterest and fee costs that come with loans add to private school's already high price tag. A 15% interest rate on a $10,000 student loan to cover just one year of private elementary school will ultimately cost you thousands in interest fees. If you're already struggling to afford private school, increasing the cost won't make things any easier.\nAlso keep in mind that repaying private school loans could drain funds that may be better spent saving or paying for your child's college education. You should carefully consider whether the rewards of a private school education outweigh that risk. END
 TITLE: How to Finance Your Child’s Private School Education CONTENT: Make the Smart Choice\n---------------------\nUsing one or more of the methods above can help make it less painful to pay for private school. If you're considering an education loan or personal loan to help cover the cost of tuition, be sure to check your credit score first. If necessary, take steps to improve your credit habits and take actions that can have a positive impact on your credit score. END
 TITLE: Do You Need a Credit Score to Rent a House or Apartment? CONTENT: Landlords consider several factors before accepting you as a tenant. To help make their decision, they'll typically use the following information.\n*   **Income**: You'll generally need a gross monthly income equal to three to four times the amount of the monthly rent. For example, to rent an apartment for $1,200 per month, you'd need a gross monthly income of $3,600 to $4,800. Use pay stubs, W2 tax forms or bank statements to document your income. If you're looking for apartments and starting a new job soon, ask the employer for a letter confirming your start date and salary.\n*   **Credit report and credit score**: The landlord can check your credit report and credit score, looking for a history of on-time payments and red flags such as past-due accounts, accounts in collections and bankruptcies. They'll also consider your monthly debt and whether your income is sufficient to handle it and still pay the rent.\n*   **Tenant screening report**: Landlords aren't required to report rent payments to credit reporting bureaus, but some do. To review your rental history, landlords typically use tenant screening reports that provide background information on rent payment history, evictions, unpaid rent, broken leases or other indicators of your desirability as a tenant.\n*   **Personal identification**: Landlords need personal data such as your name, birthdate, current and previous addresses and contact information, as well as identification so they know you are who you say you are. END
 TITLE: Do You Need a Credit Score to Rent a House or Apartment? CONTENT: How to Check Your Credit Before Renting an Apartment\n----------------------------------------------------\nThere's no set credit score necessary to rent an apartment or house; the criteria for approval will vary depending on the property, location, landlord and other factors. However, knowing your credit score before you start apartment-hunting can help you zero in on properties you may qualify to rent.\nGet a free copy of your credit report and review it for accuracy. You can also check your credit score for free to see where you stand. Here's how credit scores rank in the popular FICO® Score☉ model:\n*   **Exceptional**: 800 to 850\n*   **Very good**: 740 to 799\n*   **Good**: 670 to 739\n*   **Fair**: 580 to 669\n*   **Very poor**: 300 to 579\nIf your score is good to exceptional, you can start your apartment search with confidence. A poor or fair credit score won't necessarily keep you from renting; you'll just need to approach it differently. For example, you may have more success with independent landlords than with management companies of large properties. END
 TITLE: Do You Need a Credit Score to Rent a House or Apartment? CONTENT: Options for Renting an Apartment When You Have Bad or No Credit\n---------------------------------------------------------------\nThe following tactics can help you rent a house or apartment with poor credit or no credit history.\n*   **Establish or improve your credit.** If you don't need the apartment right away, spend a few months building a credit history or improving your credit. Signing up for Experian Boost™† , a free service that reports utility, phone and streaming service payments to credit bureaus, can help establish credit or increase your FICO® Score. Other quick ways to establish a credit history include applying for a secured credit card, becoming an authorized user on the credit card of a family member with good credit, or applying for a credit-builder loan—and paying all those bills on time. To help improve your credit score, bring any past-due accounts current, keep paying your bills on time, pay down debt and avoid applying for new credit, which can cause a temporary drop in your credit score.\n*   **Consider a cosigner.** Asking a close friend or family member with good credit to cosign the lease with you can help you secure an apartment that would otherwise be out of reach. By cosigning, they promise to pay the rent if you can't—so don't leave them in the lurch, or your relationship as well as your credit score may suffer. Before you have them sign, work out a plan for what happens in the case that you can't pay your rent.\n*   **Find a roommate.** One or more roommates with good credit can overcome your less-than-perfect credit, as long as you ask the landlord to check the roommate's credit first. You can also look for someone already renting and seeking a roommate. Depending on their situation, you may not need to be added to the lease or undergo a credit check.\n*   **Get references.** Ask former landlords, employers or business associates for letters of recommendation you can use to prove your reliability.\n*   **Demonstrate your rental payment history.** If you've previously rented but your landlord didn't report your payments to credit bureaus, use bank statements or rent receipts to show you paid rent regularly.\n*   **Pay more upfront.** Some landlords accept tenants with poor credit if they pay a bigger security deposit. Paying a few months' rent upfront can ease the landlord's concerns and give you a cushion if you have financial difficulties.\n*   **Offer more proof of income.** If you have a thin credit file, providing pay stubs for the past six to 12 months (instead of just a few weeks) may give a landlord confidence in your ability to pay.\n*   **Ask for a shorter lease or go month-to-month.** A three-month lease or month-to-month arrangement means landlords can more easily replace you if you can't pay, which may make them more willing to rent to you.\n*   **Consider a long-term Airbnb rental.** Many Airbnb properties can be rented on a monthly basis. If you book a reservation lasting 28 nights or more, you'll be charged a down payment for the first month; the rest will be collected in monthly installments. Bonus: Airbnb rentals are furnished, utilities are included, and you can even pay with a credit card.\nUse Your Rent Payments to Boost Your Credit Score\n-------------------------------------------------\nOnce you've signed the rental lease, having your landlord report your rent payments to credit bureaus can help you establish credit or improve your credit score. If your landlord doesn't already do this, see if you can convince them to start, or if they will let you pay via a rent payment service that works with Experian RentBureau.\nFinally, be sure to make your rent payments on time and comply with the rules of your lease. Being a model tenant will make it easier to qualify for an apartment or house the next time you want to move. END
 TITLE: Do You Need a Credit Score to Rent a House or Apartment? CONTENT: Use Your Rent Payments to Boost Your Credit Score\n-------------------------------------------------\nOnce you've signed the rental lease, having your landlord report your rent payments to credit bureaus can help you establish credit or improve your credit score. If your landlord doesn't already do this, see if you can convince them to start, or if they will let you pay via a rent payment service that works with Experian RentBureau.\nFinally, be sure to make your rent payments on time and comply with the rules of your lease. Being a model tenant will make it easier to qualify for an apartment or house the next time you want to move. END
 TITLE: Does Your Credit Score Start at Zero? CONTENT: Starting with no credit score doesn't mean your score is zero. Rather, your score simply doesn't exist. That's because your credit score is calculated only at the moment that a lender, credit card issuer or other entity requests it to check your creditworthiness. If you haven't yet built a credit history, there's no information on which to base that calculation, so there's no score at all.\nOnce you begin to establish a credit history, you might assume that your credit score will start at 300 (the lowest possible FICO® Score☉ ). But it's highly unlikely your first credit score will be that low, unless you start off with very poor credit habits. Nor will your first credit score be the highest level (under the two most commonly used credit scoring models, FICO® and VantageScore®, that's 850). When you're new to using credit, you simply don't have a robust enough credit history to earn the highest score. END
 TITLE: Does Your Credit Score Start at Zero? CONTENT: How Your Credit Score Is Calculated\n-----------------------------------\nTo understand why your first credit score is likely to be somewhere in the middle range, it's important to know how credit scores work. Your credit score is calculated using five factors:\n1.  **Payment history**: The most important single factor in your credit score is whether or not you pay your bills on time. Payment history accounts for 35% of your FICO® Score, which is why it's so important never to miss a payment.\n2.  **Credit utilization**: Credit utilization refers to how much of your available revolving credit you're using. Your credit utilization ratio is calculated by dividing the amount of revolving credit you're currently using by the total of all your revolving credit limits. Aim to keep your credit utilization ratio under 30%, both overall and on each credit account, which you can do by keeping balances low or at zero. Credit utilization accounts for 30% of your FICO® Score.\n3.  **Length of credit history**: How long you've used credit accounts for 15% of your credit score. This takes into consideration the age of each account on your credit report as well as the average age of all your open accounts. The longer your credit history, the more information credit bureaus have about you, which generally translates into higher credit scores.\n4.  **Credit mix**: There are two main types of credit. With installment credit, which includes car loans, personal loans, mortgages and student loans, you borrow a set amount and make a fixed monthly payment to pay back the total by a specific date. The other type, revolving credit, allows you to spend up to a certain credit limit and either pay the balance in full each month or carry it over as long as you make a minimum payment. Credit cards, store cards and home equity lines of credit are examples of revolving credit. Showing that you can manage different types of credit accounts responsibly will help your credit score. Credit mix accounts for 10% of your credit score.\n5.  **New credit**: The number of new credit accounts you've recently opened, as well as the number of hard inquiries on your credit report, accounts for 10% of your credit score. A hard inquiry occurs when a lender reviews your credit report to help them make a decision about your application. Multiple hard inquiries within a short time indicate greater risk and can hurt your credit score. END
 TITLE: Does Your Credit Score Start at Zero? CONTENT: How to Check Your Credit Score\n------------------------------\nIf you're not sure what your credit score is, it's easy to find out by getting a free FICO® Score from Experian. You may also be able to get a free credit score from credit card issuers or lenders with whom you have accounts. Keep in mind that although FICO is the most commonly used credit scoring model, there are other models out there, and your score may vary slightly depending on which model is used. Learn more about how to check your credit score and what it means. END
 TITLE: Does Your Credit Score Start at Zero? CONTENT: How to Build and Maintain a Good Credit Score\n---------------------------------------------\nOnce you have a credit score, how can you help maintain or improve it? First, you need to understand what is considered a good credit score. Both the FICO® Score and VantageScore models range from 300 to 850. Using the FICO scoring model, a score 670 or higher is considered good and a score of 800 or above is considered exceptional. A VantageScore 661 or above is considered good while a score 781 or above is considered excellent.\nThe higher your credit score, the more likely you are to be approved for loans or credit at the best rates and most favorable terms. The lower your credit score, the more difficult it will be to get a credit card, obtain favorable terms on a loan or even rent an apartment.\nWhether you want to improve your credit score from good to excellent or you're trying to raise your poor credit score to the fair range, there are plenty of things you can do right away to build credit history and improve your credit score. END
 TITLE: Does Your Credit Score Start at Zero? CONTENT: A Winning Score\n---------------\nYour credit score doesn't start at zero. But no matter where your score stands now, using credit responsibly will help to build a credit history, improve your credit score and keep it as high as possible. Get started by getting a free copy of your credit report. Once you know where you stand, it will be easier to make the right moves to maintain good credit. END
 TITLE: How Disputing Information on Your Credit Report Affects Your Credit CONTENT: Disputes Related to Accounts or Public Records\n----------------------------------------------\n*   **Updated:** This can mean a couple different things, such as:\n    *   The information you disputed has been updated\n    *   The information you disputed might have been verified as accurate by the financial institution, but other information on your account unrelated to your dispute has been updated.\n*   **Deleted:** The item was removed from your credit report.\n*   **Processed:** The item was updated or deleted from your credit report.\n*   **Remains:** The company reporting the information has certified to Experian that the information is accurate, so the item has not changed.\n### Disputes Related to Your Personal Information or an Inquiry\n*   **Added:** This item was added to your credit report.\n*   **Updated:** The information you disputed has been updated on your credit report.\n*   **Address Updated:** This may appear to you as ‘deleted' as your address is updated to the current address.\n*   **Deleted:** The item was removed from your credit report.\n*   **Processed:** The item was either updated or deleted.\n*   **Remains:** The company reporting the information has certified to Experian that the information is accurate, so the item has not changed. END
 TITLE: How Disputing Information on Your Credit Report Affects Your Credit CONTENT: How Will the Results of My Dispute Impact My Credit Scores?\n-----------------------------------------------------------\nFiling a dispute has no impact on your score, however, if information on your credit report changes after your dispute is processed, your credit scores could change.\nHow it changes—whether it goes up, down or stays the same—is dependent on what you are disputing and the outcome of the dispute. For example, late payments have a negative impact on credit scores; if a late payment was mistakenly reported on your credit report, and you had this incorrect information removed through the dispute process, your credit scores will most likely improve.\nSome information on your credit report has no impact on credit scores, such as identification and address information. If you corrected this type of information, it will not affect your credit scores.\nAfter your dispute is completed, (this generally takes about 30 days) log in to your Experian account to see how your dispute affected your FICO® Score☉ from Experian. This helpful FICO® Score infographic can help you understand more about your score and how lenders view your creditworthiness. END
 TITLE: How Disputing Information on Your Credit Report Affects Your Credit CONTENT: How Long Will Information Stay on My Credit Report?\n---------------------------------------------------\nBy law, most negative information, such as a late payment, is required to stay on your credit report for seven years. Positive information can remain on your credit report indefinitely. See How Long Does Something Stay on my Credit Report for more information. END
 TITLE: How Disputing Information on Your Credit Report Affects Your Credit CONTENT: What If I Disagree With the Outcome of My Dispute?\n--------------------------------------------------\nIf you receive your dispute results and don't agree with them, you have a few options:\n#### 1\\. Contact the Source of the Information\nYour best next step is to contact the entity who originally provided the information to Experian. This is usually the creditor, lender or financial institution that provided the loan or credit initially, but could also be a collection agency or office of the government. The contact details for the source of each piece of information appears on your credit report. View your credit report to get the contact information.\n#### 2\\. Add a Statement of Dispute\nA statement of dispute allows you to explain why you believe the information is inaccurate or incomplete. The statement will appear on your Experian credit report whenever it's accessed or requested by a potential lender or creditor, so they may ask you for more details or documentation as part of their review or application process. To add a statement of dispute, go to the Dispute Center, choose the item in dispute, and select \"Add a Statement\" from the menu of dispute reasons.\n#### 3\\. Dispute Again With Relevant Information\nIf you have additional relevant information to substantiate your claim, you can submit a new dispute by uploading the additional documentation through Experian's Online Dispute Center. Once your dispute has been submitted you will be presented with a link to upload supporting documentation. END
 TITLE: How Will Marrying Someone Who Filed Bankruptcy Affect Your Credit? CONTENT: The short answer is no. Marrying someone doesn't merge your credit report with theirs. You'll both maintain credit histories and credit scores independent of one another, and derogatory marks on an account won't affect the other spouse's credit unless that account is held jointly.\nTheir record will not be added to yours or directly impact your credit score—and vice versa. In fact, your marital status will not even show up on your credit report, nor will it affect your credit scores.\nSpouses are also not responsible for individual debts their partners incurred before marriage. If you live in a community property state, however, you will have an equal obligation to repay any debt your spouse incurs while you are married. Even if your name isn't on the account, creditors can pursue your assets in debt collection efforts.\nCommunity property states are: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. Married couples in Alaska can opt in to community responsibility.\nIf you're concerned about your joint financial prospects, talking to your partner can help. Ask them to explain the context of their bankruptcy. Did they suddenly lose their job or become ill, causing them to fall behind on payments? Or did they get in over their heads due to poor money management? In the latter case, invite them to share what they learned from the experience and how their money habits have changed. This can be a great opportunity to discuss your different approaches to money and develop financial goals and habits for your marriage together. END
 TITLE: How Will Marrying Someone Who Filed Bankruptcy Affect Your Credit? CONTENT: How Will a Bankruptcy Affect Applying for Future Credit?\n--------------------------------------------------------\nYour spouse's bankruptcy could affect any joint financing you pursue during your marriage. Buying a house is one of the biggest purchases you'll make as a couple, and you may face some hurdles if your partner has bad credit or has been through a bankruptcy. When a couple applies for a home loan, the lender will generally focus on the middle, or median, score for both partners and use the lower of the two to determine loan terms. If your partner's score is low due to bankruptcy, it may mean paying a lot more in interest or not being approved for a mortgage at all.\nBankruptcy's effect on your spouse's credit will also affect the likelihood that your spouse can qualify for a loan on their own, and the interest costs they'll pay if they are approved. If you're willing, you can cosign a loan for them, which can help them qualify for lower rates. As a cosigner, you're financially responsible for paying back the loan if they're unable to.\nDepending on the type of bankruptcy they filed, that event will stay on your spouse's credit report for either seven or 10 years. There are ways they can raise their score and increase your opportunities as a couple even before a bankruptcy is removed from your spouse's reports.\nYour partner should make sure all bills are paid on time going forward. That includes rent, utilities, credit cards, student loans and any other debts. Even if you can only pay the monthly minimum, on-time payments are crucial to achieving and maintaining good credit. END
 TITLE: How Will Marrying Someone Who Filed Bankruptcy Affect Your Credit? CONTENT: Is It Better to File Bankruptcy Before or After Marriage?\n---------------------------------------------------------\nThe big question to ask here is whether you both have substantial debt that can be discharged in bankruptcy. If you have no debt, or you have some debt with manageable payments, you likely aren't planning to file for bankruptcy. In that case, you may want your soon-to-be spouse to file before you get married.\nIf your future spouse's debt has you worried, it may be best for them to deal with those accounts before you are legally bound to one another.\nIf you also carry high debts and plan to file bankruptcy, filing together after you're married may be the better option. That way you can file one case jointly and reduce the amount of attorney and court fees associated with the case.\nBankruptcy is a complicated process, though, so if you're not sure how to proceed, you can always consult an attorney or financial advisor. Whether you file before or after you're married, an expert advisor can help you strategize based on your shared and individual assets.\nIf you find yourself in the unfortunate situation of needing to file bankruptcy and also getting divorced, there's no clear answer on which should come first. You may want to file bankruptcy first to discharge certain debts that will otherwise continue to be your joint responsibility after the divorce. But again, an attorney or financial advisor can help you decide the best course of action for your situation. END
 TITLE: How Will Marrying Someone Who Filed Bankruptcy Affect Your Credit? CONTENT: How to Build Back Credit After a Bankruptcy\n-------------------------------------------\nA bankruptcy can stay on a credit report for seven or 10 years, depending on the type of bankruptcy that's filed. A Chapter 13 filing stays on a credit report for seven years, while Chapter 7 falls off after 10. Once that time is up, a new credit score will need to be requested in order for the impact of its removal to be seen.\nThere are other ways someone can increase their credit score after bankruptcy as well:\n1.  Create an emergency fund. Having an emergency savings fund with three to six months' worth of expenses in cash can help you navigate job loss or illness without going into debt.\n2.  Avoid taking on new debt. Create a budget and follow it closely each month. Living within your means will help you stay out of debt and steer clear of high-interest credit cards or loans that become difficult to repay.\n3.  Become an authorized user. Someone with a bankruptcy in their past may not be able to get approved for loans and credit cards that help rebuild their credit history. Being added as an authorized user can help, however, since the positive payment history the primary account holder has made will be added to the authorized user's credit file.\n4.  Make all payments on time. Every payment matters, no matter what type of account you have. Set reminders for yourself so you don't miss deadlines or enroll in autopay to avoid late fees and dings to your credit score.\nBuilding your credit after bankruptcy takes time, but it can happen if you and your spouse are committed to that goal. You can also sign up for free credit monitoring through Experian, which will send you alerts when your score changes and allows you to check your Experian credit report monthly for free. Tracking your progress can give you the motivation to stick with your new habits and achieve good credit once again. END
 TITLE: What’s a Good Personal Loan Interest Rate? CONTENT: What Is the Average Interest Rate on a Personal Loan?\n-----------------------------------------------------\nThe average interest rate on a personal loan is 9.41%, according to Experian data from Q2 2019. Depending on the lender and the borrower's credit score and financial history, personal loan interest rates can range from 6% to 36%.\nA personal loan is a form of credit that allows consumers to finance large purchases, such as a home renovation, or consolidate high interest debt from other products like credit cards. In most cases, personal loans offer lower interest rates than credit cards, so they can be used to consolidate debts into one lower monthly payment.\nThe average personal loan interest rate is significantly lower than the average credit card interest rate, which was about 17% as of November 2019, according to the Federal Reserve. END
 TITLE: What’s a Good Personal Loan Interest Rate? CONTENT: What Affects Personal Loan Interest Rates?\n------------------------------------------\nPersonal loans are considered unsecured debt, which means there is no collateral, such as a home or car, to back the loan. That can account for why your personal loan interest rate may be higher than the rate for your mortgage or auto loan. Personal loans also generally use the term APR, or annual percentage rate, to refer to additional loan costs beyond the principal balance. This number includes the fees you'll pay in addition to interest.\nOne of the biggest factors contributing to the interest rate you'll receive is your credit score. With a higher credit score—as close to 850 as possible in most scoring models—you'll have the best chance at lower rates. High credit scores, in lenders' eyes, correlate to less risk; if you have a history of making on-time payments and avoiding taking on more debt than you can afford, you're more likely to pay off your personal loan as agreed.\nLenders will also look at your debt-to-income ratio, or DTI, which is calculated by dividing the total debt payments you make each month by your gross monthly income. Debts included in the DTI calculation include student loans, credit card bills, auto loans, mortgages and existing personal loans. A lower DTI means you have more room in your budget to take on a new payment, and may mean a lower interest rate.\nIf you can't qualify for a personal loan on your own, or you want a lower interest rate, some lenders also allow you to apply with a creditworthy cosigner. That person will have to apply along with you, and the lender will assess their credit score, DTI, annual income and ability to repay the loan. That's because if you can't make payments, your cosigner will be responsible for them. Make sure you both understand that, and are comfortable with the loan's repayment terms, before moving forward. END
 TITLE: What’s a Good Personal Loan Interest Rate? CONTENT: How to Compare Personal Loans\n-----------------------------\nSome lenders will let you estimate your interest rate without submitting a full application, a process called prequalification. This results in a soft inquiry, which won't affect your score. Submitting a loan application will cause a hard inquiry—more on that in a bit.\nYou can get interest rate estimates from a range of lenders to understand the rate you'll likely receive, and pick which lender you'll submit a full application to. When considering offers, compare the following:\n*   **APR**: Since this incorporates both your interest rate and fees, it reflects the total cost of your loan. It's likely the most important piece of information to use when comparison shopping.\n*   **Loan term**: This is the length of time or number of installment payments it will take to pay off the loan. Often, shorter loan terms lead to cheaper APRs.\n*   **Discounts available**: You may be able to lower your rate by getting a loan from a bank or credit union where you already have other accounts, or if you set up automatic payments.\n*   **Monthly payment**: How much will you pay per month, and does that fit within your current budget? Will you be able to continue making minimum payments on your other debts and cover essential expenses?\n*   **Fees**: Understand how much your lender will charge in origination fees, late fees or prepayment penalties for paying off the loan early. END
 TITLE: What’s a Good Personal Loan Interest Rate? CONTENT: How Personal Loans May Affect Your Credit Scores\n------------------------------------------------\nAlthough it's important to shop around for the lowest interest rate, submitting applications to multiple lenders will lead to several hard inquiries on your credit report. That can have a small negative effect on your credit score before they drop off after two years.\nOne way to avoid multiple hard inquiries on your credit report is to comparison shop during a short time period to minimize the impact. Most credit scoring models will count several hard inquiries for the same type of credit product as a single event if they occur in a window of a couple weeks.\nIn addition to prequalification, some lenders may also offer you preapproval, which the lender initiates to determine whether you are qualified for a loan. Preapprovals lead to soft inquiries only.\nPersonal loans can help improve your credit score if you develop a history of on-time payments; they may also boost your score if they add to the types of credit in your file. But if you pay late or miss payments altogether, your score will suffer—which can limit your ability to access other forms of credit at favorable terms. END
 TITLE: What’s a Good Personal Loan Interest Rate? CONTENT: Personal Loans Beyond the Interest Rate\n---------------------------------------\nIt's important to be aware of the personal loan interest rate you should aim for, and what you're likely to receive based on your credit profile. But it's even more crucial to make sure that a personal loan is the right fit for you, and that you can afford its monthly payment for the entire loan term. Manage a personal loan responsibly so that you're in the best position possible to get other financial products at low rates in the future. END
 TITLE: How Long Does It Take to Get a Personal Loan? CONTENT: Personal loans are disbursed as one lump-sum payment. Borrowers then repay it with fixed monthly payments for a predetermined amount of time (anywhere from several months to up to seven years). Personal loans are primarily available through banks, credit unions and online lenders, and below are the typical funding timelines for each. END
 TITLE: How Long Does It Take to Get a Personal Loan? CONTENT: What Credit Score Do I Need to Get a Personal Loan?\n---------------------------------------------------\nA strong credit score tends to unlock lower interest rates and better borrowing terms for personal loans. And while it's still possible to get a personal loan with a lower score, the added interest will end up costing you more in the long run. You may also be ineligible with certain lenders that have higher credit score requirements. Generally speaking, those with a minimum FICO® Score☉ of 670 will have the most choices.\nIf your credit is lower, however, you may still have options. Avant personal loans, for example, offer competitive rates for borrowers with fair credit (a FICO® Score of 580 to 669)—and they fund as early as the next business day. Most Avant customers have a credit score ranging from 600 to 700, according to the company.\nIt's important to note that lenders look at more than just your credit. Your income is another factor in your personal loan application because lenders want reassurance that you'll be able to repay your loan without any hiccups. They'll zero in on your debt-to-income ratio, which shows how much of your gross monthly income is currently earmarked for debt payments. Having lots of competing debt obligations could affect your eligibility.\nIf you're seeking a personal loan and your credit score could be stronger, ask yourself if it's possible to improve your credit before applying. Paying your bills on time and reducing your credit card balances can help strengthen your score—and your odds of qualifying for an affordable personal loan. END
 TITLE: How Long Does It Take to Get a Personal Loan? CONTENT: How Do Personal Loans Affect Your Credit?\n-----------------------------------------\nPersonal loans show up on your credit report and, in turn, affect your credit score. This can be a good thing that helps improve your score if you repay the loan as promised. If you're using a personal loan to consolidate revolving credit card balances, you could end up significantly reducing your credit utilization rate—something that could help increase your credit score. Having a healthy mix of different types of credit accounts on your credit report can also be good.\nHowever, falling behind on your personal loan payments will reflect negatively on your credit report and drag down your score. At the end of the day, you're also adding more debt to your name, which could complicate your overall financial health. This impact on your finances can also wind up affecting your credit score. Those who incur new monthly expenses or have a change in income, for example, may find it difficult to keep up with other monthly bills—even if they continue to make good on their personal loan payments. END
 TITLE: How Long Does It Take to Get a Personal Loan? CONTENT: What About Payday Loans and Title Loans?\n----------------------------------------\nWhen researching ways to find fast funding, you may come across payday loans that are marketed as short-term loans meant to hold you over until your next paycheck. However, they're known for astronomical fees and rates that could end up costing you a lot of money in the long run. If you can't pay it back, it could also negatively impact your credit score and trigger even more fees and interest. Payday loans should be avoided.\nTitle loans that use your vehicle title as collateral for a quick loan are another potentially dangerous option. On top of charging notoriously high borrowing fees, these types of lenders can also repossess your car if you end up defaulting on the loan. If you're stuck between a rock and a hard place, consider alternative ways to come up with emergency money. Aside from personal loans, you could explore the following:\n*   A new 0% intro APR credit card\n*   Borrowing from friends or family\n*   A home equity loan or home equity line of credit\n*   A credit card cash advance, although this option can end up being costly END
 TITLE: How to Take Out a Personal Loan CONTENT: Gather the Necessary Information\n--------------------------------\nBefore you apply for a personal loan, you'll want to get some important information and documents in order. Although you won't necessarily need these to submit an application, they're good to have on hand in case a lender requires them to verify your identity or information and complete the loan process.\nCommon requirements include:\n*   **Identity verification**: A copy of a government-issued identification card, such as a passport, driver's license or state-issued identification card, will typically work.\n*   **Income verification**: This may require you to provide copies of recent paystubs, bank statements, annual retirement benefits letters or tax records. Some lenders allow borrowers to use an online verification tool.\n*   **Address verification**: A copy of a recent utility bill, voter registration card, mortgage statement or lease could be used to verify your current address.\nHaving these documents on hand can help you quickly send copies if and when they're requested, helping avoid any potential delays. END
 TITLE: How to Take Out a Personal Loan CONTENT: Check Your Credit Report and Score\n----------------------------------\nYou may want to check your credit reports and scores to get an idea of what lenders will see when you apply.\n*   Check your credit reports for free at AnnualCreditReport.com.\n*   Review your credit score. You can do this in several ways, including for free through Experian.\n*   Learn how to improve your credit scores.\n*   If applicable, make sure to unlock or unfreeze all three credit reports before applying.\nYou might not know exactly which credit report or score type the lender will use, but checking your credit can still be important. Make sure there aren't any errors in your credit reports that might be hurting your scores. And see if there's anything you could do to quickly improve your score, such as paying down credit card debt, before applying. END
 TITLE: How to Take Out a Personal Loan CONTENT: Understand What You Can Afford\n------------------------------\nIt's also important to figure out how much you want to borrow before submitting applications. You can often pay off a personal loan early without paying any prepayment penalties; however, many lenders charge an origination fee—often, a percentage of the loan amount—which means borrowing more money than you need will lead to unnecessarily high fees.\nYour monthly payment will depend on your loan amount, interest rate and repayment period (also called the loan term). A loan calculator can help show you how changing these factors can impact your monthly payment. Compare several options and review your budget to see how much you can afford to borrow. You might get a more affordable monthly payment with a loan that has a longer term, but you'd likely end up paying more in interest.\nPersonal Loan Calculator\n------------------------\n†The information provided is for educational purposes only and should not be construed as financial advice. Experian cannot guarantee the accuracy of the results provided. Your lender may charge other fees which have not been factored in this calculation. These results, based on the information provided by you, represent an estimate and you should consult your own financial advisor regarding your particular needs.\nBefore applying for personal loans, review the lenders' minimum and maximum loan amounts. It's also important to know that a lender could approve you for a loan, but for less than you want to borrow.\nYour debt-to-income (DTI) ratio—a comparison of your monthly income and debt obligations—can directly impact how much you're approved to borrow. Paying off debts or increasing your income can lower your DTI, which could make it easier to get approved for a bigger loan or one with more favorable terms. END
 TITLE: How to Take Out a Personal Loan CONTENT: Shop Around and Compare Rates\n-----------------------------\nOnce you've gathered your documents, reviewed your credit and determined how much you want to borrow, it's time to shop around and get loan offers from several lenders.\nThere are banks, credit unions and online lenders that offer personal loans, and each lender may have its own loan terms and requirements. Many also let you check your loan offers and rates online without impacting your credit score. Lenders may call this either getting prequalified or preapproved for a personal loan.\nTo check your offers, you may be asked to share your name, address, Social Security number, contact information, income and desired loan amount. Lenders can then give you estimated loan offers based on a review of your creditworthiness.\nGetting prequalified isn't a guarantee you'll be approved for a loan, though. For example, the lender might not approve you if your credit score drops after you're prequalified but before you submit your loan application. Or, you may get rejected if your income is impacted due to job loss after getting prequalified. Still, prequalification is a good first step—and it won't impact your credit.\nGetting prequalified for multiple loans can also help you determine which lenders are likely to want to work with you and give you the best loan offers. You can also cross off lenders that don't prequalify or preapprove you for a loan, which can save you time and limit the impact on your credit scores later. END
 TITLE: How to Take Out a Personal Loan CONTENT: Apply and Review Offers\n-----------------------\nYou may want to get prequalified with several lenders before submitting your first personal loan application. Applying for the loan could be as simple as accepting one of the prequalification offers. Or, if you haven't checked your rate with the lender, you may need to submit your personal information. Either way, you generally have to agree to a hard credit check at this point. Hard credit inquiries may hurt your credit, but that impact is typically small and temporary.\nLenders will then review your information to determine whether you qualify for a loan. If they like what they see and want to take you on as a borrower, they'll make an offer. Once you have an offer in front of you, look it over in detail, including the offered loan amounts, repayment terms, interest rates and monthly payments. Know that you don't have to accept a personal loan offer, and you may be able to accept less than the full loan amount if you'd prefer.\nOnce you accept a loan offer, you may need to verify the information that you've submitted by sending copies of the documents you gathered earlier. You could also be given the option to set up a direct deposit to have the money sent to your bank account, or your loan may be sent by check. If you're using a personal loan to refinance or consolidate debts, some lenders can send the funds directly to your current creditors.\nThe timing can vary by lender, but the verification and funding process often takes around one to six business days. END
 TITLE: How to Take Out a Personal Loan CONTENT: Alternatives to Personal Loans\n------------------------------\nYou might look for an alternative to taking out a personal loan if you can't get approved, or if you only receive offers with high rates. A few popular alternatives include:\n*   Credit cards\n*   Secured loans\n*   Paycheck advances or early payday apps\n*   Borrowing money from friends or family\n*   Looking into assistance programs to help with other financial needs\nYour creditworthiness and the reason why you want to get a personal loan can also impact which option is best.\nFor example, you may be able to get a personal loan if you have bad credit, but the high origination fees and interest rate could make it more expensive than using a credit card. Even if you can get a low personal loan rate, a balance transfer credit card might be a better option for consolidating credit card debt than a personal loan.\nOr, perhaps you want to get a personal loan to improve your home. If you take out a home equity loan or home equity line of credit the interest payments could be tax deductible, which can decrease your overall costs.\nIf you were trying to take out a personal loan as a way to pay off credit card debt, consider working with a certified credit counselor. In addition to offering financial advice, a credit counselor can create a debt management plan to help you reduce your debt. END
 TITLE: How to Take Out a Personal Loan CONTENT: Quickly Compare Personal Loan Offers\n------------------------------------\nAlthough checking your rate with a personal loan lender is often a quick and easy process, shopping for a loan can still become a hassle. Experian's CreditMatchTM tool can help. You can create a free account and log in to submit a prequalification request. Experian then shows you available loan offers from multiple partners, allowing you to quickly see which lenders might be the best fit. The offers are also good for 30 days, giving you time to consider and compare other options as well. END
 TITLE: How Much Does the Average Wedding Cost? CONTENT: How Much Should You Spend on Your Wedding?\n------------------------------------------\nWeddings are often a reflection of the individuality of the couple hosting the festivities. Their lifestyle, shared personal interests and love for one another should come shining through as their family and friends gather to experience their wedding celebration. Because every couple is unique, wedding budgets can vary greatly.\nHere are some expenses that should be considered as couples work on their wedding budget:\n*   The number of guests invited and whether you'll be providing a meal, drink service or open bar.\n*   Technology such as audio\/visual equipment needed to host the event.\n*   Venue size and associated services such as setup and teardown crews.\n*   Catering and other charges related to food service.\n*   Entertainment for your guests, such as live music, a DJ or both.\n*   Wedding dress and tuxedo or suit, hairstylist and makeup artist.\n*   Flowers, invitations and a wedding cake.\n*   Gifts for the wedding party and other important family and friends. END
 TITLE: How Much Does the Average Wedding Cost? CONTENT: How to Stay on Track with Your Wedding Budget\n---------------------------------------------\nTo help stick to your wedding budget and keep wedding spending separate from your other finances, it's often a good idea to open up a dedicated joint bank account for your wedding expenses. In the lead-up to your wedding, you and your spouse can set aside a certain amount monthly into this account. Free budgeting tools and apps can help you manage wedding expenses that have a tendency to add up such as party favors, photos, transportation and accommodation for out of town guests.\nIf you're confused about how to make a budget for your wedding, think about approaching it in a similar way to how you create your personal budget. What are the things that you must have at your wedding and what are things you could sacrifice if need be? Whenever you make a decision about a vendor or add-on service, first ask yourself what you can afford to pay. Your wedding is a big moment for you and your spouse-to-be, of course, but breaking the bank for it isn't a great way to begin your marriage. END
 TITLE: How Much Does the Average Wedding Cost? CONTENT: How to Save Money on Your Wedding\n---------------------------------\nFor some couples, using a dedicated credit card may be a great way to not only manage expenses but also earn bonuses such as mileage points toward your honeymoon travel. However, you should keep in mind that interest charges can easily add to your total debt balance if you don't pay off your purchases quickly. A credit card with a 0% introductory interest rate can give you some time to pay off these purchases without paying interest. Alternatively, a personal loan could help you cover your wedding costs—just make sure that you'll be able to afford the required monthly payments.\nThe best way to pay for a wedding, however, is with cash. Paying in cash will mean you can enter your marriage without wedding-related debt, and might even mean some leftover funds for other life goals such as buying a house. It can be difficult to part with a lot of money at one time, so consider setting up automatic withdrawals from your checking accounts as early as possible in the planning process to save a predetermined amount for your wedding fund.\nIf you're not able to cover the full cost of your wedding, you might downsize the event, cut some expenses or make other changes to your plans. There are many ways to do so:\n*   **Plan an off-season event.** Timing is one of the biggest determining factors of a wedding's cost, and even the day of the week the ceremony is held can make a big difference. Weekends are the prime days to get married and as a result it's more expensive to host your wedding on those days. Couples may also decide to change the time of year for their wedding. According to The Knot, January through March are the least in-demand months to host a wedding, and may result in lower costs from venues and vendors.\n*   **Skip the expensive dinner.** Instead of serving a full meal, it may be more affordable to offer guests hors d'oeuvres. Simple changes to the type of protein you offer in a wedding meal could significantly impact the cost of your event. Chicken is common to serve at many weddings because it's much more affordable than seafood or steak.\n*   **Have a dry wedding.** While it's common to serve alcohol at weddings, a couple may decide to forgo serving it. The average amount spent on alcohol at weddings is $2,300, according to The Knot, which means big potential savings if you don't include it. As an alternative, you could provide a no-host bar where guests pay for their own drinks, which is a more budget-friendly option than having an open bar.\n*   **Pare down the guest list.** While it might sting to uninvite or exclude friends or distant family members from the ceremony, the number of guests who attend your wedding has a big effect on its cost. Don't send save-the-dates or wedding invitations until you're confident you can afford to accommodate all your guests.\n*   **Consider a DIY wedding.** The most challenging savings option is to \"do it yourself.\" DIY weddings allow couples to economize by taking over tasks that are typically handled by professionals. Instead of paying someone else to make your table centerpieces, welcome signage and other accoutrements, you could handle these tasks yourself for a fraction of the cost. You'll also have total control over things like color, style and materials that way. END
 TITLE: How Much Does the Average Wedding Cost? CONTENT: Preparing for the Big Day\n-------------------------\nWeddings have the potential to be one of the largest one-time expenses many people will make in their lifetime. Unlike buying a car or purchasing a home, weddings have the additional stress and pressure of setting the tone for your new life with your spouse.\nPlanning for your special day should begin shortly after you get engaged, but that doesn't mean you should feel rushed. Take the time to choose a wedding date, venue and other details, and keep costs in mind every step of the way. Spend time working with your significant other on designing a wedding budget that avoids plunging you into deep debt. With the financial aspect of getting married well-managed, you'll be able to spend your wedding day enjoying your ceremony instead of stressing over costs. END
 TITLE: Can You Get a Personal Loan With a Credit Score of 550? CONTENT: What Kind of Credit Score Is 550?\n---------------------------------\nA 550 FICO® Score☉ puts you in the very poor credit score range, which goes from 300 to 579. Although a 550 is on the higher end of the range, it's still considered a low credit score.\nThere are several reasons why you may have a low score, such as delinquent accounts, previously missed payments or a record of bankruptcy in your credit file. Over time, the impact of these negative marks will diminish, but most negative items can stay on your credit reports for up to seven years and affect your credit scores the entire time.\nYou can still qualify for some types of financing with a 550 credit score. However, personal loans are often unsecured loans, which means the lender is giving you money based solely on the promise that you'll repay the loan. Because borrowers with lower credit scores are statistically more likely to miss payments, lenders often charge higher rates to these borrowers to limit their financial risk. END
 TITLE: Can You Get a Personal Loan With a Credit Score of 550? CONTENT: Many personal loan lenders require a credit score that's at least in the 600s, which means your options will be limited with a 550 credit score. However, there are lenders that specialize in working with borrowers who have poor credit. Here are some places you can look:\n*   **Online lenders**: A few online lenders have a low credit score requirement. You may be able to get prequalified with a simple application that doesn't impact your credit score.\n*   **Credit unions**: Credit unions are not-for-profit financial institutions that serve their members—people who have accounts at the credit union. Credit unions may be more flexible than traditional banks when it comes to working with poor-credit borrowers. You can often qualify to become a credit union member based on where you live, work or by making a small donation to certain nonprofits.\n*   **Community banks**: Similar to working with credit unions, if you've been a regular customer at a community bank, you could ask a banker about their loan options. You may find that the banker will work with you based on your established banking relationship.\nThere are also some types of bad credit loans that are best to avoid, or only use as a last resort:\n*   **Payday loans**: A payday loan often doesn't require a credit check, but the loan's sky-high fees and short repayment term make it an expensive option. Some borrowers find themselves paying a fee to extend their repayment period, making the overall cost even higher.\n*   **High-interest installment loans and lines of credit**: Some lenders offer installment loans and lines of credit you may qualify for, but charge high fees and interest rates that make them difficult and expensive to repay.\n*   **Title loans**: If you own a vehicle, you can use it as collateral to take out a loan. Title loans are risky, however, because you risk losing your vehicle if you can't make a payment on time. END
 TITLE: Can You Get a Personal Loan With a Credit Score of 550? CONTENT: Alternatives to Personal Loans When You Have Bad Credit\n-------------------------------------------------------\nIf you're having trouble getting approved for a personal loan or find you're only getting approved for loans with unreasonable rates and terms, consider a few alternative financing options:\n*   **Credit cards**: While credit cards often have high interest rates, sometimes the APR on a credit card will be lower than what you'll receive with a high-rate personal loan. Also, see if any of your credit cards have temporary 0% APR offers, which could make them a low-cost option if you pay off the balance before the interest rate offer ends.\n*   **A paycheck advance**: Some companies let you take out a payroll loan, or advance on your next paycheck (without the high rates that payday loan lenders charge). There are also early payday apps that could give you low-cost advances or small loans.\n*   **Friends and family**: If you're in a jam and need help with a one-time bill, getting a small loan from friends or family members may be an option.\n*   **Debt management plans**: A debt management plan might help if you're struggling with lots of credit card debt. A credit counseling agency will work to get fee waivers and lower monthly payments on your credit cards, helping free up extra cash for your monthly budget. You will make one monthly payment to the credit counselor, who will distribute the money to the card issuers. However, you may need to close your credit card accounts.\n*   **Financial assistance programs**: Look to see if you qualify for nonprofit or government assistance programs. These might not offer you a loan or direct cash assistance, but could help decrease your expenses.\nAdditional options depend on why you need a personal loan. For example, if you need money for rent, you might want to ask your landlord for an extension or see if they'll lower your rent in exchange for working on property repairs or maintenance. Or, if you're struggling to afford a medical bill, you may be able to negotiate a low- or no-interest payment plan with the health care provider. END
 TITLE: Can You Get a Personal Loan With a Credit Score of 550? CONTENT: How to Improve a 550 Credit Score\n---------------------------------\nImproving a 550 credit score can require patience and action. Patience, because you may need to wait for the impact of negative items to diminish. And action, because there's a lot you can do in the interim to help improve your credit:\n*   **Pay all your bills on time.** Making payments on time is possibly the most important thing you can do for your credit. Once a bill falls 30 days past due, the creditor can report your late payment to the credit bureaus, and the late payment mark could stay in your credit history for up to seven years. It's also important to make on-time payments for bills that aren't usually reported to the credit bureaus because a defaulted account may be sent to collections; the collection account could then wind up on your credit report and affect your scores.\n*   **Lower revolving account balances.** If you have credit card and revolving credit line debt, paying down your balances could lower your credit utilization and help improve your credit scores. This can be a quick way to improve your credit scores if you currently have high credit utilization.\n*   **Use Experian Boost™† .** A free service, Experian Boost lets you link your bank accounts and add on-time phone, utility and streaming service payments to your Experian credit report. These accounts aren't typically reported to the credit bureaus, and their presence could give a lift to scores based on your Experian credit report.\n*   **Open new accounts only as needed.** If you don't have many credit accounts open, you may want to take out a secured credit card or credit-builder loan to help rebuild your credit. Making on-time payments on your new account can add positive information to your credit reports, which may help your scores. Do so only if you're sure you can make all payments as agreed, however. And keep in mind that opening several accounts in a short period can affect your scores negatively.\nImproving your credit isn't only important for getting better loan terms. A good credit score can also save you money on insurance in many states, make renting a home easier, and keep you from having to pay security deposits to open new utility accounts. END
 TITLE: Can You Get a Personal Loan With a Credit Score of 550? CONTENT: Monitor Your Progress\n---------------------\nAs you work to improve your credit, you can monitor your credit reports and scores for free with credit monitoring from Experian. You can also log in to your Experian account to use the Experian CreditMatchTM tool and quickly see if you're prequalified for personal loan offers from Experian's partners. END
 TITLE: 7 Financial Tips for LGBTQ Newlyweds CONTENT: 1\\. Get to Saving\n-----------------\nWhether you plan to keep checking accounts separate or combined, it's a good idea to work toward building savings and planning for big expenses as a couple.\nAn Experian survey from 2018 found that LGBTQ respondents were more likely to say they had difficulty setting aside savings compared with the general population. Contributing factors likely include a persistent pay gap and other forms of systemic discrimination. It also doesn't help that same-sex couples weren't eligible receive many of the financial benefits of marriage up until 2015, including the ability to file taxes jointly, receive spousal health and retirement benefits, and more.\nIncreasing your savings may be as simple as committing to setting a certain amount aside regularly. Start with whatever you can afford and work up from there over time. Having money automatically deposited into your savings account(s) every pay period or month can help build your emergency fund as well and funds for other financial goals.\nIf you plan to have kids, starting your savings plan now is important, since family-building options such as adoption, surrogacy or in-vitro fertilization are costly. END
 TITLE: 7 Financial Tips for LGBTQ Newlyweds CONTENT: 2\\. Build a Budget\n------------------\nGetting on a budget can help curb overspending and keep debt manageable, especially if one partner is a bigger spender. There are other benefits, too, Auten-Schneider says, such as aligning and understanding your goals. \"You don't always need to have all the same goals, but you need to be able to support each other's individual goals and know what you're both working toward,\" he says.\nHe and his husband David recommend starting by daydreaming of what you want your life to look like in five, 10 and 25 years, from traveling and having kids to retirement. \"When you've become clearer on these daydreams, ask yourself how you'll make sure you'll get there,\" Auten-Schneider says. \"How much must you save each year? Each month? Each paycheck? Then, create a plan with your budget to do just that.\"\nIf you don't already have one, making a budget starts with figuring out exactly how much income you're bringing in each month and then taking expenses into account. There are several different budgeting methods, including the 50\/30\/20 rule and zero-based budgeting, so do some research and figure out which one works best with your lifestyle. The most important part of any budget plan is sticking to it—which may be easy to do once you see the benefits of knowing where your money goes each month. END
 TITLE: 7 Financial Tips for LGBTQ Newlyweds CONTENT: 3\\. Decide Whether to Combine Finances\n--------------------------------------\nHistorically, heteronormative couples merged finances and the husband managed all the money, Auten-Schneider says. \"That's evolving along with the roles that different genders play in relationships and the acceptance of different kinds of relationships,\" he explains. \"With that, it's important for you as a couple to do what works for you both or for all of you, but it's also important for there to be complete transparency.\"\nHe urges couples to avoid hiding financial topics from their partners, which could indicate underlying trust issues that need to be addressed. \"But that doesn't mean that all the finances need to be combined or that one person is responsible for all the finances,\" he continues. Individual relationships with money are personal and can be fraught with emotional baggage, so he says the key is to talk openly and regularly together.\nDon't forget that there's no one-size-fits-all solution: You can always combine some things, like a savings account you both contribute to, but not others, such as separate checking accounts. END
 TITLE: 7 Financial Tips for LGBTQ Newlyweds CONTENT: 4\\. Share Your Credit Score\n---------------------------\nIf you plan to apply for debt together, such as a car loan, mortgage or credit card, you'll need to get familiar with your spouse's credit. That's because it plays a huge role in what you can qualify for. In some states, you're responsible for your spouse's debt, making it even more important to keep borrowing under control.\nIt can be nerve-wracking to share your credit score, Auten-Schneider adds, but it helps build trust in your relationship. \"If you can't trust each other enough to share your credit scores, then there may be bigger problems and that could have dire consequences to your relationship down the road, including financial infidelity,\" he says.\nYou can get your credit score several ways, including for free from Experian. You may also want to look at your credit reports from all three credit bureaus (Experian, TransUnion and Equifax), which you can do for no charge at AnnualCreditReport.com. END
 TITLE: 7 Financial Tips for LGBTQ Newlyweds CONTENT: 5\\. Start Estate Planning\n-------------------------\nEven with the legal protections of marriage available, it's still wise for LGBTQ couples to have a lawyer create estate planning documents. These explicitly state who will receive your assets and make decisions about your health and finances if you become incapacitated or pass away.\nThis can be especially important if your family isn't supportive and\/or if you have or adopt children, whether from a previous relationship or together. While you're at it, make sure to update the beneficiaries on your financial accounts. END
 TITLE: 7 Financial Tips for LGBTQ Newlyweds CONTENT: 6\\. Consider Long-Term Care Insurance\n-------------------------------------\nAs newlyweds, the last thing you may want to think about is becoming elderly or infirm. But it's vital for LGBTQ couples to consider how they want to spend their older years. Despite laws that are supposed to help, nearly half of older same-sex couples have experienced housing discrimination, according to nonprofit advocacy organization SAGE.\nTo avoid this, you could plan to live in an LGBTQ-friendly long-term care facility, though cost is a significant concern for couples, according to a UBS survey. Updating your home to allow aging in place and receiving in-home care is another way to mitigate discrimination, but it's not cheap either. Long-term care insurance can help cover the cost of living in the affirming facility of your choice, and in some cases, paying for at-home care, according to UBS. Premiums are less expensive the younger you are and can help save you money later—and remain more comfortable and safe. END
 TITLE: 7 Financial Tips for LGBTQ Newlyweds CONTENT: 7\\. Find an Affirming Financial Planner\n---------------------------------------\nIf you're struggling to get on the same page financially, consider hiring a financial planner or advisor who's either in the LGBTQ community or very knowledgeable about your unique needs.\nThis professional can help you and your spouse create a budget, assess priorities and make a plan for how to achieve goals. Do a search to find advisors or firms in your area that specialize in LGBTQ clients. You can also search through databases, such as GuideVine, where financial planners can label that they specialize in the LGBTQ community.\nIf you can't afford to hire a planner, there are plenty of free resources. For example, SAGE has a free digital wellness platform called SAGECents for older LGBTQ people. END
 TITLE: How to Avoid Balance Transfer Credit Card Fees CONTENT: When you transfer debt from a credit card or loan, such as an auto loan, payday loan or home equity line of credit, to a new credit card to get a lower interest rate, you'll likely be charged a balance transfer fee. This fee amount is determined when you initiate a balance transfer and automatically becomes part of your outstanding balance.\nOnce you're approved for a balance transfer card, the credit card company will confirm your credit limit. When you ask the card issuer to transfer your eligible debts to the new card, they will either send you a check for the amount being transferred or pay that amount to the lender(s) directly. Your new credit card's balance will reflect the amount you transferred plus the balance transfer fee (typically 3% to 5% of the amount transferred).\nWhile it's not impossible to find a card with no balance transfer fee, they are somewhat rare. Instead, it might be best to consider your reasons for a balance transfer, whether the fee is worth it, what benefits you'll get from your balance transfer card and what other alternatives may exist. END
 TITLE: How to Avoid Balance Transfer Credit Card Fees CONTENT: What to Keep in Mind When Transferring a Balance\n------------------------------------------------\nIf you're considering getting a balance transfer card, here are some things to consider.\n1.  Can you pay off the transferred balance before the 0% introductory APR period ends? If not, interest on any remaining balance will start to accrue. Depending on the regular APR the new credit card charges, you might end up paying more in interest than if you hadn't transferred a balance.  \n    To avoid paying interest, try to avoid using the balance transfer card for any new purchases and focus on paying it off before the introductory period expires. According to a recent Experian survey, most people who use balance transfer cards are successful at paying them off during the promotional period.\n2.  Does the savings in interest outweigh the balance transfer fee? Calculate what the balance transfer fee will be and weigh whether paying that additional cost is worth the savings in interest. In most cases, the answer is yes, but if you're transferring a large balance to a card with a 5% balance transfer fee, your savings may be reduced.  \n    The only way to avoid a balance transfer fee is to find a card that doesn't charge one. Such offers are generally reserved for people with good to excellent credit. If you're not sure you fit that description, check your credit score to find out.\n3.  Have you read the fine print? Balance transfer fees are typically 3% to 5% of the balance you transfer. Also look for extra costs such as annual fees, late fees and foreign transaction fees that come with the card.  \n    And do keep in mind that a card that offers 0% APR on balance transfers may not offer 0% APR on purchases. If you plan to use the new card for purchases, make sure you are clear on whether new charges will accrue interest and what that interest rate will be. END
 TITLE: How to Avoid Balance Transfer Credit Card Fees CONTENT: How to Choose a Balance Transfer Card\n-------------------------------------\nTo choose the best balance transfer card for your needs, consider the following:\n*   How long does the 0% introductory APR last? Common introductory periods are 12, 15 or 18 months; you may even be able to find cards that offer 21 months. A longer introductory period gives you more time to pay off your balance; if you're transferring a large balance, this gives you greater flexibility.\n*   Does the introductory 0% APR also apply to purchases? If so, for how long?\n*   Once the introductory period ends, what is the APR on purchases? (Know the APR of your current credit cards so you can compare.) If you miss a payment, will your APR increase?\n*   What fees are involved? In addition to balance transfer fees, some cards charge an annual fee or impose fees for late payments or foreign transactions. Weigh these fees against the savings the 0% APR offers.\n*   Does the card offer any rewards? Cash back, travel rewards and purchase protection are among the perks some credit cards offer. But because your primary focus when choosing a balance transfer card is consolidating debt, benefits shouldn't be the deciding factor. If you do plan to use the card after you've paid off your transferred balance, however, it doesn't hurt to take perks into account as well. END
 TITLE: How to Avoid Balance Transfer Credit Card Fees CONTENT: Balance Transfer Card Alternatives\n----------------------------------\nMost balance transfer credit cards require good to excellent credit. Fortunately, a balance transfer credit card isn't your only option for paying down debt if your credit scores could use some work. Consider these alternatives:\n*   **Debt consolidation**: If you're juggling payments to several different creditors, getting a debt consolidation loan could simplify your life by rolling all your debt into one loan. It could also save you money if the interest rate on the new loan is lower than the rates of your outstanding loans. You use the loan proceeds to pay off your creditors, then make just one monthly payment to the debt consolidation lender. This could make it easier to keep track of what you owe and avoid missing a payment, which can hurt your credit score. You can even find debt consolidation loans designed for people with less-than-stellar credit.\n*   **Credit counseling**: Trying to pay off large amounts of debt can feel overwhelming. If you're having trouble paying down debt and improving your credit on your own, you may want to get help from a credit counseling service. Be careful to use a reputable credit counseling service—typically, these are nonprofit organizations affiliated with the National Foundation for Credit Counseling. Watch out for fraudulent credit repair services that promise to fix your bad credit instantly or wipe out your debt. Such companies may charge exorbitant fees or advise you to lie about your identity to \"fix\" your credit, which can get you in even deeper financial trouble.\n*   **Debt management plan**: A legitimate credit counseling agency may suggest setting up a debt repayment plan called a debt management plan (DMP). The credit counselor negotiates with your creditors to create a new payment plan for you, which may involve reducing your interest rates, waiving fees or otherwise lowering your balances. You pay the counseling agency every month; they use the money to pay your creditors (keeping a small fee for themselves). Most DMPs are designed to pay off your debts within three to five years. The credit counseling agency typically provides ongoing counseling to help you learn and maintain good credit habits. END
 TITLE: How to Avoid Balance Transfer Credit Card Fees CONTENT: Balancing Act\n-------------\nTo decide if a balance transfer card can work for you, check out [Experian CreditMatch™](;br=cm&dAuth=true&op=FRSM-ASK-ART-109-MDL-XXXXXXX-XX-EXP-VWIN-DIR-1203XX-39034X-XXXXX) to see which balance transfer offers you may qualify for. Look at the details of each offer and calculate how much you can save in interest, the fees you'll have to pay, and whether you can realistically pay off the transferred balance before the introductory APR offer expires. Used correctly, a balance transfer card is a valuable tool that can save you money and help you pay off high interest debt faster. END
 TITLE: Can You Get a Personal Loan With Fair Credit? CONTENT: What Is Considered Fair Credit?\n-------------------------------\nA FICO® score of 580 to 669 is considered fair. FICO® scores range from 300 to 850 and fall into the following five categories:\nRating\nCredit Score\nVery poor\n300-579\nFair\n580-669\nGood\n670-739\nVery good\n740-799\nExceptional\n800-850\nYour FICO® scores are based on information in your credit reports maintained by the three major credit reporting agencies—Experian, TransUnion and Equifax. In calculating your credit score, FICO® considers these five factors:\n*   **Payment history**: How consistent you've been paying your bills on time is the most important factor in maintaining a good credit score. This accounts for 35% of your FICO® Score☉ , so even one missed or late payment can have a big effect.\n*   **Amounts owed**: Add up all of your credit card balances and divide that number by the sum of all your available credit card limits to find your credit utilization. This factor, along with how much progress you've made paying down any loans you have, accounts for 30% of your credit score. The lower your credit utilization, and the closer you are to paying off your cards, the better.\n*   **Length of credit history**: 15% of your credit score is based on how long you've held your credit card and loan accounts. This factor also considers the average age of all your accounts.\n*   **Credit mix**: Seasoned credit users manage a variety of credit products: loans, credit cards, lines of credit and so on. The diversity of your credit portfolio accounts for 10% of your FICO® Score.\n*   **New credit**: The final 10% of your score is based on how many credit accounts you've opened recently and how many hard inquiries have been made on your credit report. A flurry of new credit applications can increase how risky you appear to lenders.\nWhen you apply for credit, lenders use your credit score to help assess the risk involved in lending you money. A high credit score indicates that you have experience managing credit and that you've been successful at repaying debt. A fair credit score suggests you might be relatively new at using credit or that you've experienced some setbacks in the past. Because this translates into a higher perceived risk for lenders, the lowest interest rates and best loan terms may be out of reach to borrowers with fair credit. If your credit falls into this range, one of your main challenges will be finding the right lender and loan. END
 TITLE: Can You Get a Personal Loan With Fair Credit? CONTENT: There are straightforward steps to applying for a personal loan. The first step is to evaluate your credit situation. Your credit reports are available for free through AnnualCreditReport.com. You can also see your credit score and download your credit report from Experian for free at any time. Review your score information and check your credit report for any inaccuracies and any factors that may be holding back your scores. END
 TITLE: Can You Get a Personal Loan With Fair Credit? CONTENT: How to Improve a Fair Credit Score\n----------------------------------\nIf you have time before you need to apply for a loan, you can try to improve your credit scores. There's no magic method for doing so, but there are a few steps you can take that may nudge your credit score toward friendlier territory:\n*   **Address inaccuracies.** If you find incorrect information in your credit report, dispute it.\n*   **Pay down debt.** Reducing the balances on your credit cards will help raise your score.\n*   **Pay bills on time.** A single late payment can stay on your credit report for seven years, so it's important not to miss any.\n*   **Get credit for on-time phone, utility and streaming bills.** Experian Boost™† helps you factor your on-time phone, utility and streaming service payments into your credit history, which may instantly raise your score.\n*   **Be conservative with new credit.** Don't open new accounts and until it's time to apply for your loan again.\nTurning a fair credit score into a good one isn't a fast fix. It can take months—or longer. But it may also spell the difference between a costly loan and one that genuinely helps your finances. If you have the time to work on your credit score and apply for a personal loan later, it may be to your benefit. END
 TITLE: Can You Get a Personal Loan With Fair Credit? CONTENT: Putting Your Best Foot Forward\n------------------------------\nSecuring the right personal loan with fair credit can be a challenge, but it can also help put you on the road to better financial health—and inspire you to take control of your credit. Going forward, keeping an eye on your credit with tools like Experian's free credit monitoring can help you correct course when things are trending the wrong way and track your progress as your credit improves. END
 TITLE: Seven Top Online Personal Loan Lenders CONTENT: Avant\n-----\n[](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)[Apply](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)\non Avant's website\n**Recommended FICO® Score\\***\nFair - Very Good\nAmount\nAvailable loan amounts: $2,000 to $35,000\nEst. monthly payment: $91 to $2,048\nGrace period: 10 days\nApplication fee: $0\n##### Loan Details\n*   Personal loans from $2,000 to $35,0001 entirely online\n*   Checking your loan options will not affect your credit score\n*   Funding as soon as next business day2\n*   No collateral needed and customer support available 7 days a week\nDisclosure\nAvant personal loans could be a good option if you have fair to good credit. The upfront administration fee of up to 4.75% and a minimum APR slightly higher than other similar offerings means it likely won't be a top pick if you have excellent credit. But the ability to get a secured loan online quickly can be a big plus for those who need a quick cash infusion, and the secured loans have a lower administration fee (2.5%).  \nLendingPoint\n------------\n[](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)[Apply](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)\non LendingPoint's website\n**Recommended FICO® Score\\***\nFair - Good\nAmount\nAvailable loan amounts: $2,000 to $25,000\nEst. monthly payment: $95 to $1,437\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   Personal loans from $2,000 to $25,000\n*   Rates from 15.49% to 35.99% APR with no prepayment penalties\n*   Check your rate for free without impacting your credit score\n*   Qualified customers receive offers in three simple steps, and funds in as little as 24 hours if approved\n*   Simple and Secure - quick online application\n*   LendingPoint's customer success representatives are available online or by phone 24\/7, just call 888-969-0959\n*   Terms from 24 - 60 months\nDisclosure\nA potential top option for borrowers with fair credit, LendingPoint offers fast funding but also has a high minimum APR. The origination fee can range from 0% to 6% and will depend on factors including your creditworthiness and the loan amount; the fee will be deducted from your loan disbursement. While LendingPoint isn't the best option for everyone—particularly those with high credit scores who likely can find lower rates elsewhere—it's worth checking to see if you can get prequalified (which will not affect your credit) and reviewing your loan offers.  \nPayoff\n------\n[](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)[Apply](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)\non Payoff's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $5,000 to $40,000\nEst. monthly payment: $219 to $2,075\nGrace period: 10 days\nApplication fee: $0\n##### Loan Details\n*   5.99% - 24.99% APR\n*   Pay off high-interest credit card balances and save\n*   Quickly check your rate without affecting your credit score\n*   No prepayment, late, or check-processing fees\n*   Members see an average FICO® Score boost of 40 points when paying down credit card balances\nDisclosure\nIf you want to use a personal loan to consolidate credit card debt, then Payoff might be a great option. Payoff focuses specifically on helping people pay off credit card debt. In fact, your maximum loan amount might be your current card balances. There are also minimal fees: The only one is an origination fee, which can range from 0% to 5%. If approved, you'll be able to choose from a two- to five-year repayment term.  \nProsper\n-------\n[](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)[Apply](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)\non Prosper's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $2,000 to $40,000\nEst. monthly payment: $61 to $1,720\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   640 minimum FICO® Score\n*   More than $16 billion loans funded\n*   Consolidate debt, finance a home improvement project, or pay off medical expenses\n*   9 out of 10 customers would recommend Prosper to friends or family\\*\\*\n*   Co-borrower option available. Applying with a co-borrower could help improve your rates.\n*   Get your money in as few as 3 days - your monthly payment stays the same\nDisclosure\nUnlike online personal loan companies that directly fund their loans, Prosper is a peer-to-peer marketplace that connects lenders and borrowers. Your application process will be similar to that of other lenders, but receiving your loan may take slightly longer. Still, it can be a good choice if you want long repayment terms. Loans through Prosper will have an origination fee, which can range from 2.41% to 5%.  \nSoFi\n----\n[](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)[Apply](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)\non SoFi's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $5,000 to $100,000\nEst. monthly payment: $217 to $4,944\nGrace period: 10 days\nApplication fee: $0\n##### Loan Details\n*   Personal Loans with low fixed rates\n*   Borrow up to $100,000\n*   No Origination Fees, No Prepayment Penalties, and No Late or Overdraft Fees\n*   Simple online application with live support 7 days a week\n*   Apply Now\nDisclosure\nFor borrowers with good to excellent credit, SoFi is a top lender to consider due to its low rates and fees. It offers personal loans of up to $100,000—a higher limit than many competitors—and doesn't charge any application or origination fees. The interest rate range also starts low compared with other lenders, and borrowers may qualify for additional benefits, such as free meetings with a financial planner or career coach.  \nUpgrade\n-------\n[](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)[Apply](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)\non Upgrade's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,095\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Affordable loans from $1,000 - $50,000 with low fixed rates that will never change, affordable monthly payments, and no prepayment penalties\n*   Quick online application -- get pre-approved in just minutes\n*   Checking your rate won't impact your credit score\n*   Review multiple loan options so you can pick the amount and term that fits your budget and timeline\n*   With automatic payments and a customizable due date, managing your account is easy and you'll be able to circle the date on your calendar when you'll be debt free\nDisclosure\nUpgrade's personal loan offering stands out due to its wide range for rates, loan amounts and origination fee, which can be 2.9% to 8%. It also allows you to apply with a cosigner. However, there are only two repayment terms to choose from—three or five years.  \n### Upstart\n[](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)[Apply](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)\non Upstart's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,262\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Loan amounts from $1,000 - $50,000\n*   APRs from 6.46% - 35.99% with loan terms of 3 or 5 years\n*   Won't affect your credit score\n*   You can have funds in as fast as 1 day\n*   You are more than your credit score. On Upstart your education and experience help you get the rate you deserve.\nDisclosure\nUpstart is a lending platform that focuses on borrowers with less-than-excellent credit, and stands apart from other lenders with its unique underwriting process. When reviewing your application, Upstart considers traditional factors, such as your credit, income and debts as well as alternative data, like whether you graduated college, your major and your grade-point average. As a result, applicants with fair to good credit may get approved for larger loans or lower interest rates with Upstart than other lenders. Upstart's origination fee ranges from 0% to 8%.  \nHow to Choose a Personal Loan Lender\n------------------------------------\nBefore you apply for a personal loan, you may want to review lenders' requirements and loan offers. Here are some of the things you'll want to consider:\n*   **Your loan use**: While you can use a personal loan for almost anything, there may be some restrictions. For example, rules may vary on whether you can use the funds for business, educational or investment purposes.\n*   **Your credit**: Lenders may have a minimum credit score requirement. You can get a free FICO® Score☉ from Experian to see where you currently stand.\n*   **Minimum and maximum loan amounts**: Your creditworthiness may determine the loan size you're offered, but you'll also want to make sure the lender's maximum loan amount is high enough for your needs. While you can generally repay part or all of the loan early without a penalty, minimum amounts may be important if the lender charges an origination fee. You may also find the minimum loan amount in your state is higher than the lenders' general minimums.\n*   **Residency requirements**: While you won't need to visit a bank branch to get a personal loan from an online lender, lenders might not be approved to offer loans in every state. You don't have any control over this, but it's worth keeping in mind that your options may vary depending on where you live.\n*   **Origination or administrative fee**: Unless you have good to excellent credit, many personal loans will require an upfront origination or administrative fee. The fee is often taken out of the loan amount, which you'll want to consider when you're determined how much to borrow.\n*   **Repayment terms**: The repayment term can also impact your monthly payment and interest rate. If you want to get a low rate and pay off the debt quickly, look for a lender that offers short repayment terms. However, if you'd prefer a lower monthly payment, a longer repayment term may be a better fit.\n*   **APR ranges**: Many lenders will advertise an APR range. You won't know which rate you'll receive until you get prequalified or receive a loan offer. However, the range could help you determine whether the lender focuses on borrowers with excellent, good or poor credit (a lower minimum APR may correlate with higher credit requirements).\n*   **Time to funding**: If you need money ASAP, some lenders can transfer the funds into your bank account within one or two business days of processing your application. Make sure you have identification and verification documents, such as recent pay stubs or tax forms, ready to prevent delays.\n*   **A cosigner option**: If you can't qualify for a personal loan on your own, some companies allow you to add a cosigner to your application. A creditworthy cosigner could help you get approved and qualify you for a better offer, but the cosigner's credit will also be on the line.\nAfter narrowing down your lender options, you can often start with a prequalification application online. Getting prequalified doesn't guarantee you'll be approved, especially if there's a big change in your creditworthiness before you apply, but it can still be helpful.\nPrequalification usually requires a soft inquiry—which won't hurt your credit—and can help show you possible loan offers. If you're prequalified, you can then decide to submit an application, which may require a hard inquiry that can hurt your credit a little. If you don't get prequalified, you can rule out the lender without submitting an application or potentially hurting your credit.\nYou can also use a service, such as Experian's CreditMatch™, to compare lenders. Once you're signed in, you can even submit a single loan prequalification application to quickly get prequalified offers from multiple Experian personal loan partners. END
 TITLE: Seven Top Online Personal Loan Lenders CONTENT: Avant\n-----\n[](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)[Apply](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)\non Avant's website\n**Recommended FICO® Score\\***\nFair - Very Good\nAmount\nAvailable loan amounts: $2,000 to $35,000\nEst. monthly payment: $91 to $2,048\nGrace period: 10 days\nApplication fee: $0\n##### Loan Details\n*   Personal loans from $2,000 to $35,0001 entirely online\n*   Checking your loan options will not affect your credit score\n*   Funding as soon as next business day2\n*   No collateral needed and customer support available 7 days a week\nDisclosure\nAvant personal loans could be a good option if you have fair to good credit. The upfront administration fee of up to 4.75% and a minimum APR slightly higher than other similar offerings means it likely won't be a top pick if you have excellent credit. But the ability to get a secured loan online quickly can be a big plus for those who need a quick cash infusion, and the secured loans have a lower administration fee (2.5%). END
 TITLE: Seven Top Online Personal Loan Lenders CONTENT: LendingPoint\n------------\n[](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)[Apply](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)\non LendingPoint's website\n**Recommended FICO® Score\\***\nFair - Good\nAmount\nAvailable loan amounts: $2,000 to $25,000\nEst. monthly payment: $95 to $1,437\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   Personal loans from $2,000 to $25,000\n*   Rates from 15.49% to 35.99% APR with no prepayment penalties\n*   Check your rate for free without impacting your credit score\n*   Qualified customers receive offers in three simple steps, and funds in as little as 24 hours if approved\n*   Simple and Secure - quick online application\n*   LendingPoint's customer success representatives are available online or by phone 24\/7, just call 888-969-0959\n*   Terms from 24 - 60 months\nDisclosure\nA potential top option for borrowers with fair credit, LendingPoint offers fast funding but also has a high minimum APR. The origination fee can range from 0% to 6% and will depend on factors including your creditworthiness and the loan amount; the fee will be deducted from your loan disbursement. While LendingPoint isn't the best option for everyone—particularly those with high credit scores who likely can find lower rates elsewhere—it's worth checking to see if you can get prequalified (which will not affect your credit) and reviewing your loan offers.  \nPayoff\n------\n[](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)[Apply](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)\non Payoff's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $5,000 to $40,000\nEst. monthly payment: $219 to $2,075\nGrace period: 10 days\nApplication fee: $0\n##### Loan Details\n*   5.99% - 24.99% APR\n*   Pay off high-interest credit card balances and save\n*   Quickly check your rate without affecting your credit score\n*   No prepayment, late, or check-processing fees\n*   Members see an average FICO® Score boost of 40 points when paying down credit card balances\nDisclosure\nIf you want to use a personal loan to consolidate credit card debt, then Payoff might be a great option. Payoff focuses specifically on helping people pay off credit card debt. In fact, your maximum loan amount might be your current card balances. There are also minimal fees: The only one is an origination fee, which can range from 0% to 5%. If approved, you'll be able to choose from a two- to five-year repayment term.  \nProsper\n-------\n[](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)[Apply](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)\non Prosper's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $2,000 to $40,000\nEst. monthly payment: $61 to $1,720\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   640 minimum FICO® Score\n*   More than $16 billion loans funded\n*   Consolidate debt, finance a home improvement project, or pay off medical expenses\n*   9 out of 10 customers would recommend Prosper to friends or family\\*\\*\n*   Co-borrower option available. Applying with a co-borrower could help improve your rates.\n*   Get your money in as few as 3 days - your monthly payment stays the same\nDisclosure\nUnlike online personal loan companies that directly fund their loans, Prosper is a peer-to-peer marketplace that connects lenders and borrowers. Your application process will be similar to that of other lenders, but receiving your loan may take slightly longer. Still, it can be a good choice if you want long repayment terms. Loans through Prosper will have an origination fee, which can range from 2.41% to 5%.  \nSoFi\n----\n[](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)[Apply](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)\non SoFi's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $5,000 to $100,000\nEst. monthly payment: $217 to $4,944\nGrace period: 10 days\nApplication fee: $0\n##### Loan Details\n*   Personal Loans with low fixed rates\n*   Borrow up to $100,000\n*   No Origination Fees, No Prepayment Penalties, and No Late or Overdraft Fees\n*   Simple online application with live support 7 days a week\n*   Apply Now\nDisclosure\nFor borrowers with good to excellent credit, SoFi is a top lender to consider due to its low rates and fees. It offers personal loans of up to $100,000—a higher limit than many competitors—and doesn't charge any application or origination fees. The interest rate range also starts low compared with other lenders, and borrowers may qualify for additional benefits, such as free meetings with a financial planner or career coach.  \nUpgrade\n-------\n[](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)[Apply](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)\non Upgrade's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,095\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Affordable loans from $1,000 - $50,000 with low fixed rates that will never change, affordable monthly payments, and no prepayment penalties\n*   Quick online application -- get pre-approved in just minutes\n*   Checking your rate won't impact your credit score\n*   Review multiple loan options so you can pick the amount and term that fits your budget and timeline\n*   With automatic payments and a customizable due date, managing your account is easy and you'll be able to circle the date on your calendar when you'll be debt free\nDisclosure\nUpgrade's personal loan offering stands out due to its wide range for rates, loan amounts and origination fee, which can be 2.9% to 8%. It also allows you to apply with a cosigner. However, there are only two repayment terms to choose from—three or five years.  \n### Upstart\n[](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)[Apply](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)\non Upstart's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,262\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Loan amounts from $1,000 - $50,000\n*   APRs from 6.46% - 35.99% with loan terms of 3 or 5 years\n*   Won't affect your credit score\n*   You can have funds in as fast as 1 day\n*   You are more than your credit score. On Upstart your education and experience help you get the rate you deserve.\nDisclosure\nUpstart is a lending platform that focuses on borrowers with less-than-excellent credit, and stands apart from other lenders with its unique underwriting process. When reviewing your application, Upstart considers traditional factors, such as your credit, income and debts as well as alternative data, like whether you graduated college, your major and your grade-point average. As a result, applicants with fair to good credit may get approved for larger loans or lower interest rates with Upstart than other lenders. Upstart's origination fee ranges from 0% to 8%.  \nHow to Choose a Personal Loan Lender\n------------------------------------\nBefore you apply for a personal loan, you may want to review lenders' requirements and loan offers. Here are some of the things you'll want to consider:\n*   **Your loan use**: While you can use a personal loan for almost anything, there may be some restrictions. For example, rules may vary on whether you can use the funds for business, educational or investment purposes.\n*   **Your credit**: Lenders may have a minimum credit score requirement. You can get a free FICO® Score☉ from Experian to see where you currently stand.\n*   **Minimum and maximum loan amounts**: Your creditworthiness may determine the loan size you're offered, but you'll also want to make sure the lender's maximum loan amount is high enough for your needs. While you can generally repay part or all of the loan early without a penalty, minimum amounts may be important if the lender charges an origination fee. You may also find the minimum loan amount in your state is higher than the lenders' general minimums.\n*   **Residency requirements**: While you won't need to visit a bank branch to get a personal loan from an online lender, lenders might not be approved to offer loans in every state. You don't have any control over this, but it's worth keeping in mind that your options may vary depending on where you live.\n*   **Origination or administrative fee**: Unless you have good to excellent credit, many personal loans will require an upfront origination or administrative fee. The fee is often taken out of the loan amount, which you'll want to consider when you're determined how much to borrow.\n*   **Repayment terms**: The repayment term can also impact your monthly payment and interest rate. If you want to get a low rate and pay off the debt quickly, look for a lender that offers short repayment terms. However, if you'd prefer a lower monthly payment, a longer repayment term may be a better fit.\n*   **APR ranges**: Many lenders will advertise an APR range. You won't know which rate you'll receive until you get prequalified or receive a loan offer. However, the range could help you determine whether the lender focuses on borrowers with excellent, good or poor credit (a lower minimum APR may correlate with higher credit requirements).\n*   **Time to funding**: If you need money ASAP, some lenders can transfer the funds into your bank account within one or two business days of processing your application. Make sure you have identification and verification documents, such as recent pay stubs or tax forms, ready to prevent delays.\n*   **A cosigner option**: If you can't qualify for a personal loan on your own, some companies allow you to add a cosigner to your application. A creditworthy cosigner could help you get approved and qualify you for a better offer, but the cosigner's credit will also be on the line.\nAfter narrowing down your lender options, you can often start with a prequalification application online. Getting prequalified doesn't guarantee you'll be approved, especially if there's a big change in your creditworthiness before you apply, but it can still be helpful.\nPrequalification usually requires a soft inquiry—which won't hurt your credit—and can help show you possible loan offers. If you're prequalified, you can then decide to submit an application, which may require a hard inquiry that can hurt your credit a little. If you don't get prequalified, you can rule out the lender without submitting an application or potentially hurting your credit.\nYou can also use a service, such as Experian's CreditMatch™, to compare lenders. Once you're signed in, you can even submit a single loan prequalification application to quickly get prequalified offers from multiple Experian personal loan partners. END
 TITLE: Seven Top Online Personal Loan Lenders CONTENT: LendingPoint\n------------\n[](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)[Apply](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)\non LendingPoint's website\n**Recommended FICO® Score\\***\nFair - Good\nAmount\nAvailable loan amounts: $2,000 to $25,000\nEst. monthly payment: $95 to $1,437\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   Personal loans from $2,000 to $25,000\n*   Rates from 15.49% to 35.99% APR with no prepayment penalties\n*   Check your rate for free without impacting your credit score\n*   Qualified customers receive offers in three simple steps, and funds in as little as 24 hours if approved\n*   Simple and Secure - quick online application\n*   LendingPoint's customer success representatives are available online or by phone 24\/7, just call 888-969-0959\n*   Terms from 24 - 60 months\nDisclosure\nA potential top option for borrowers with fair credit, LendingPoint offers fast funding but also has a high minimum APR. The origination fee can range from 0% to 6% and will depend on factors including your creditworthiness and the loan amount; the fee will be deducted from your loan disbursement. While LendingPoint isn't the best option for everyone—particularly those with high credit scores who likely can find lower rates elsewhere—it's worth checking to see if you can get prequalified (which will not affect your credit) and reviewing your loan offers. END
 TITLE: Seven Top Online Personal Loan Lenders CONTENT: Payoff\n------\n[](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)[Apply](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)\non Payoff's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $5,000 to $40,000\nEst. monthly payment: $219 to $2,075\nGrace period: 10 days\nApplication fee: $0\n##### Loan Details\n*   5.99% - 24.99% APR\n*   Pay off high-interest credit card balances and save\n*   Quickly check your rate without affecting your credit score\n*   No prepayment, late, or check-processing fees\n*   Members see an average FICO® Score boost of 40 points when paying down credit card balances\nDisclosure\nIf you want to use a personal loan to consolidate credit card debt, then Payoff might be a great option. Payoff focuses specifically on helping people pay off credit card debt. In fact, your maximum loan amount might be your current card balances. There are also minimal fees: The only one is an origination fee, which can range from 0% to 5%. If approved, you'll be able to choose from a two- to five-year repayment term.  \nProsper\n-------\n[](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)[Apply](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)\non Prosper's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $2,000 to $40,000\nEst. monthly payment: $61 to $1,720\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   640 minimum FICO® Score\n*   More than $16 billion loans funded\n*   Consolidate debt, finance a home improvement project, or pay off medical expenses\n*   9 out of 10 customers would recommend Prosper to friends or family\\*\\*\n*   Co-borrower option available. Applying with a co-borrower could help improve your rates.\n*   Get your money in as few as 3 days - your monthly payment stays the same\nDisclosure\nUnlike online personal loan companies that directly fund their loans, Prosper is a peer-to-peer marketplace that connects lenders and borrowers. Your application process will be similar to that of other lenders, but receiving your loan may take slightly longer. Still, it can be a good choice if you want long repayment terms. Loans through Prosper will have an origination fee, which can range from 2.41% to 5%.  \nSoFi\n----\n[](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)[Apply](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)\non SoFi's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $5,000 to $100,000\nEst. monthly payment: $217 to $4,944\nGrace period: 10 days\nApplication fee: $0\n##### Loan Details\n*   Personal Loans with low fixed rates\n*   Borrow up to $100,000\n*   No Origination Fees, No Prepayment Penalties, and No Late or Overdraft Fees\n*   Simple online application with live support 7 days a week\n*   Apply Now\nDisclosure\nFor borrowers with good to excellent credit, SoFi is a top lender to consider due to its low rates and fees. It offers personal loans of up to $100,000—a higher limit than many competitors—and doesn't charge any application or origination fees. The interest rate range also starts low compared with other lenders, and borrowers may qualify for additional benefits, such as free meetings with a financial planner or career coach.  \nUpgrade\n-------\n[](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)[Apply](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)\non Upgrade's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,095\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Affordable loans from $1,000 - $50,000 with low fixed rates that will never change, affordable monthly payments, and no prepayment penalties\n*   Quick online application -- get pre-approved in just minutes\n*   Checking your rate won't impact your credit score\n*   Review multiple loan options so you can pick the amount and term that fits your budget and timeline\n*   With automatic payments and a customizable due date, managing your account is easy and you'll be able to circle the date on your calendar when you'll be debt free\nDisclosure\nUpgrade's personal loan offering stands out due to its wide range for rates, loan amounts and origination fee, which can be 2.9% to 8%. It also allows you to apply with a cosigner. However, there are only two repayment terms to choose from—three or five years.  \n### Upstart\n[](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)[Apply](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)\non Upstart's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,262\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Loan amounts from $1,000 - $50,000\n*   APRs from 6.46% - 35.99% with loan terms of 3 or 5 years\n*   Won't affect your credit score\n*   You can have funds in as fast as 1 day\n*   You are more than your credit score. On Upstart your education and experience help you get the rate you deserve.\nDisclosure\nUpstart is a lending platform that focuses on borrowers with less-than-excellent credit, and stands apart from other lenders with its unique underwriting process. When reviewing your application, Upstart considers traditional factors, such as your credit, income and debts as well as alternative data, like whether you graduated college, your major and your grade-point average. As a result, applicants with fair to good credit may get approved for larger loans or lower interest rates with Upstart than other lenders. Upstart's origination fee ranges from 0% to 8%.  \nHow to Choose a Personal Loan Lender\n------------------------------------\nBefore you apply for a personal loan, you may want to review lenders' requirements and loan offers. Here are some of the things you'll want to consider:\n*   **Your loan use**: While you can use a personal loan for almost anything, there may be some restrictions. For example, rules may vary on whether you can use the funds for business, educational or investment purposes.\n*   **Your credit**: Lenders may have a minimum credit score requirement. You can get a free FICO® Score☉ from Experian to see where you currently stand.\n*   **Minimum and maximum loan amounts**: Your creditworthiness may determine the loan size you're offered, but you'll also want to make sure the lender's maximum loan amount is high enough for your needs. While you can generally repay part or all of the loan early without a penalty, minimum amounts may be important if the lender charges an origination fee. You may also find the minimum loan amount in your state is higher than the lenders' general minimums.\n*   **Residency requirements**: While you won't need to visit a bank branch to get a personal loan from an online lender, lenders might not be approved to offer loans in every state. You don't have any control over this, but it's worth keeping in mind that your options may vary depending on where you live.\n*   **Origination or administrative fee**: Unless you have good to excellent credit, many personal loans will require an upfront origination or administrative fee. The fee is often taken out of the loan amount, which you'll want to consider when you're determined how much to borrow.\n*   **Repayment terms**: The repayment term can also impact your monthly payment and interest rate. If you want to get a low rate and pay off the debt quickly, look for a lender that offers short repayment terms. However, if you'd prefer a lower monthly payment, a longer repayment term may be a better fit.\n*   **APR ranges**: Many lenders will advertise an APR range. You won't know which rate you'll receive until you get prequalified or receive a loan offer. However, the range could help you determine whether the lender focuses on borrowers with excellent, good or poor credit (a lower minimum APR may correlate with higher credit requirements).\n*   **Time to funding**: If you need money ASAP, some lenders can transfer the funds into your bank account within one or two business days of processing your application. Make sure you have identification and verification documents, such as recent pay stubs or tax forms, ready to prevent delays.\n*   **A cosigner option**: If you can't qualify for a personal loan on your own, some companies allow you to add a cosigner to your application. A creditworthy cosigner could help you get approved and qualify you for a better offer, but the cosigner's credit will also be on the line.\nAfter narrowing down your lender options, you can often start with a prequalification application online. Getting prequalified doesn't guarantee you'll be approved, especially if there's a big change in your creditworthiness before you apply, but it can still be helpful.\nPrequalification usually requires a soft inquiry—which won't hurt your credit—and can help show you possible loan offers. If you're prequalified, you can then decide to submit an application, which may require a hard inquiry that can hurt your credit a little. If you don't get prequalified, you can rule out the lender without submitting an application or potentially hurting your credit.\nYou can also use a service, such as Experian's CreditMatch™, to compare lenders. Once you're signed in, you can even submit a single loan prequalification application to quickly get prequalified offers from multiple Experian personal loan partners. END
 TITLE: Seven Top Online Personal Loan Lenders CONTENT: Payoff\n------\n[](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)[Apply](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)\non Payoff's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $5,000 to $40,000\nEst. monthly payment: $219 to $2,075\nGrace period: 10 days\nApplication fee: $0\n##### Loan Details\n*   5.99% - 24.99% APR\n*   Pay off high-interest credit card balances and save\n*   Quickly check your rate without affecting your credit score\n*   No prepayment, late, or check-processing fees\n*   Members see an average FICO® Score boost of 40 points when paying down credit card balances\nDisclosure\nIf you want to use a personal loan to consolidate credit card debt, then Payoff might be a great option. Payoff focuses specifically on helping people pay off credit card debt. In fact, your maximum loan amount might be your current card balances. There are also minimal fees: The only one is an origination fee, which can range from 0% to 5%. If approved, you'll be able to choose from a two- to five-year repayment term. END
 TITLE: Seven Top Online Personal Loan Lenders CONTENT: Prosper\n-------\n[](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)[Apply](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)\non Prosper's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $2,000 to $40,000\nEst. monthly payment: $61 to $1,720\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   640 minimum FICO® Score\n*   More than $16 billion loans funded\n*   Consolidate debt, finance a home improvement project, or pay off medical expenses\n*   9 out of 10 customers would recommend Prosper to friends or family\\*\\*\n*   Co-borrower option available. Applying with a co-borrower could help improve your rates.\n*   Get your money in as few as 3 days - your monthly payment stays the same\nDisclosure\nUnlike online personal loan companies that directly fund their loans, Prosper is a peer-to-peer marketplace that connects lenders and borrowers. Your application process will be similar to that of other lenders, but receiving your loan may take slightly longer. Still, it can be a good choice if you want long repayment terms. Loans through Prosper will have an origination fee, which can range from 2.41% to 5%.  \nSoFi\n----\n[](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)[Apply](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)\non SoFi's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $5,000 to $100,000\nEst. monthly payment: $217 to $4,944\nGrace period: 10 days\nApplication fee: $0\n##### Loan Details\n*   Personal Loans with low fixed rates\n*   Borrow up to $100,000\n*   No Origination Fees, No Prepayment Penalties, and No Late or Overdraft Fees\n*   Simple online application with live support 7 days a week\n*   Apply Now\nDisclosure\nFor borrowers with good to excellent credit, SoFi is a top lender to consider due to its low rates and fees. It offers personal loans of up to $100,000—a higher limit than many competitors—and doesn't charge any application or origination fees. The interest rate range also starts low compared with other lenders, and borrowers may qualify for additional benefits, such as free meetings with a financial planner or career coach.  \nUpgrade\n-------\n[](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)[Apply](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)\non Upgrade's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,095\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Affordable loans from $1,000 - $50,000 with low fixed rates that will never change, affordable monthly payments, and no prepayment penalties\n*   Quick online application -- get pre-approved in just minutes\n*   Checking your rate won't impact your credit score\n*   Review multiple loan options so you can pick the amount and term that fits your budget and timeline\n*   With automatic payments and a customizable due date, managing your account is easy and you'll be able to circle the date on your calendar when you'll be debt free\nDisclosure\nUpgrade's personal loan offering stands out due to its wide range for rates, loan amounts and origination fee, which can be 2.9% to 8%. It also allows you to apply with a cosigner. However, there are only two repayment terms to choose from—three or five years.  \n### Upstart\n[](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)[Apply](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)\non Upstart's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,262\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Loan amounts from $1,000 - $50,000\n*   APRs from 6.46% - 35.99% with loan terms of 3 or 5 years\n*   Won't affect your credit score\n*   You can have funds in as fast as 1 day\n*   You are more than your credit score. On Upstart your education and experience help you get the rate you deserve.\nDisclosure\nUpstart is a lending platform that focuses on borrowers with less-than-excellent credit, and stands apart from other lenders with its unique underwriting process. When reviewing your application, Upstart considers traditional factors, such as your credit, income and debts as well as alternative data, like whether you graduated college, your major and your grade-point average. As a result, applicants with fair to good credit may get approved for larger loans or lower interest rates with Upstart than other lenders. Upstart's origination fee ranges from 0% to 8%.  \nHow to Choose a Personal Loan Lender\n------------------------------------\nBefore you apply for a personal loan, you may want to review lenders' requirements and loan offers. Here are some of the things you'll want to consider:\n*   **Your loan use**: While you can use a personal loan for almost anything, there may be some restrictions. For example, rules may vary on whether you can use the funds for business, educational or investment purposes.\n*   **Your credit**: Lenders may have a minimum credit score requirement. You can get a free FICO® Score☉ from Experian to see where you currently stand.\n*   **Minimum and maximum loan amounts**: Your creditworthiness may determine the loan size you're offered, but you'll also want to make sure the lender's maximum loan amount is high enough for your needs. While you can generally repay part or all of the loan early without a penalty, minimum amounts may be important if the lender charges an origination fee. You may also find the minimum loan amount in your state is higher than the lenders' general minimums.\n*   **Residency requirements**: While you won't need to visit a bank branch to get a personal loan from an online lender, lenders might not be approved to offer loans in every state. You don't have any control over this, but it's worth keeping in mind that your options may vary depending on where you live.\n*   **Origination or administrative fee**: Unless you have good to excellent credit, many personal loans will require an upfront origination or administrative fee. The fee is often taken out of the loan amount, which you'll want to consider when you're determined how much to borrow.\n*   **Repayment terms**: The repayment term can also impact your monthly payment and interest rate. If you want to get a low rate and pay off the debt quickly, look for a lender that offers short repayment terms. However, if you'd prefer a lower monthly payment, a longer repayment term may be a better fit.\n*   **APR ranges**: Many lenders will advertise an APR range. You won't know which rate you'll receive until you get prequalified or receive a loan offer. However, the range could help you determine whether the lender focuses on borrowers with excellent, good or poor credit (a lower minimum APR may correlate with higher credit requirements).\n*   **Time to funding**: If you need money ASAP, some lenders can transfer the funds into your bank account within one or two business days of processing your application. Make sure you have identification and verification documents, such as recent pay stubs or tax forms, ready to prevent delays.\n*   **A cosigner option**: If you can't qualify for a personal loan on your own, some companies allow you to add a cosigner to your application. A creditworthy cosigner could help you get approved and qualify you for a better offer, but the cosigner's credit will also be on the line.\nAfter narrowing down your lender options, you can often start with a prequalification application online. Getting prequalified doesn't guarantee you'll be approved, especially if there's a big change in your creditworthiness before you apply, but it can still be helpful.\nPrequalification usually requires a soft inquiry—which won't hurt your credit—and can help show you possible loan offers. If you're prequalified, you can then decide to submit an application, which may require a hard inquiry that can hurt your credit a little. If you don't get prequalified, you can rule out the lender without submitting an application or potentially hurting your credit.\nYou can also use a service, such as Experian's CreditMatch™, to compare lenders. Once you're signed in, you can even submit a single loan prequalification application to quickly get prequalified offers from multiple Experian personal loan partners. END
 TITLE: Seven Top Online Personal Loan Lenders CONTENT: Prosper\n-------\n[](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)[Apply](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)\non Prosper's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $2,000 to $40,000\nEst. monthly payment: $61 to $1,720\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   640 minimum FICO® Score\n*   More than $16 billion loans funded\n*   Consolidate debt, finance a home improvement project, or pay off medical expenses\n*   9 out of 10 customers would recommend Prosper to friends or family\\*\\*\n*   Co-borrower option available. Applying with a co-borrower could help improve your rates.\n*   Get your money in as few as 3 days - your monthly payment stays the same\nDisclosure\nUnlike online personal loan companies that directly fund their loans, Prosper is a peer-to-peer marketplace that connects lenders and borrowers. Your application process will be similar to that of other lenders, but receiving your loan may take slightly longer. Still, it can be a good choice if you want long repayment terms. Loans through Prosper will have an origination fee, which can range from 2.41% to 5%. END
 TITLE: Seven Top Online Personal Loan Lenders CONTENT: SoFi\n----\n[](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)[Apply](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)\non SoFi's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $5,000 to $100,000\nEst. monthly payment: $217 to $4,944\nGrace period: 10 days\nApplication fee: $0\n##### Loan Details\n*   Personal Loans with low fixed rates\n*   Borrow up to $100,000\n*   No Origination Fees, No Prepayment Penalties, and No Late or Overdraft Fees\n*   Simple online application with live support 7 days a week\n*   Apply Now\nDisclosure\nFor borrowers with good to excellent credit, SoFi is a top lender to consider due to its low rates and fees. It offers personal loans of up to $100,000—a higher limit than many competitors—and doesn't charge any application or origination fees. The interest rate range also starts low compared with other lenders, and borrowers may qualify for additional benefits, such as free meetings with a financial planner or career coach.  \nUpgrade\n-------\n[](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)[Apply](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)\non Upgrade's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,095\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Affordable loans from $1,000 - $50,000 with low fixed rates that will never change, affordable monthly payments, and no prepayment penalties\n*   Quick online application -- get pre-approved in just minutes\n*   Checking your rate won't impact your credit score\n*   Review multiple loan options so you can pick the amount and term that fits your budget and timeline\n*   With automatic payments and a customizable due date, managing your account is easy and you'll be able to circle the date on your calendar when you'll be debt free\nDisclosure\nUpgrade's personal loan offering stands out due to its wide range for rates, loan amounts and origination fee, which can be 2.9% to 8%. It also allows you to apply with a cosigner. However, there are only two repayment terms to choose from—three or five years.  \n### Upstart\n[](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)[Apply](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)\non Upstart's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,262\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Loan amounts from $1,000 - $50,000\n*   APRs from 6.46% - 35.99% with loan terms of 3 or 5 years\n*   Won't affect your credit score\n*   You can have funds in as fast as 1 day\n*   You are more than your credit score. On Upstart your education and experience help you get the rate you deserve.\nDisclosure\nUpstart is a lending platform that focuses on borrowers with less-than-excellent credit, and stands apart from other lenders with its unique underwriting process. When reviewing your application, Upstart considers traditional factors, such as your credit, income and debts as well as alternative data, like whether you graduated college, your major and your grade-point average. As a result, applicants with fair to good credit may get approved for larger loans or lower interest rates with Upstart than other lenders. Upstart's origination fee ranges from 0% to 8%.  \nHow to Choose a Personal Loan Lender\n------------------------------------\nBefore you apply for a personal loan, you may want to review lenders' requirements and loan offers. Here are some of the things you'll want to consider:\n*   **Your loan use**: While you can use a personal loan for almost anything, there may be some restrictions. For example, rules may vary on whether you can use the funds for business, educational or investment purposes.\n*   **Your credit**: Lenders may have a minimum credit score requirement. You can get a free FICO® Score☉ from Experian to see where you currently stand.\n*   **Minimum and maximum loan amounts**: Your creditworthiness may determine the loan size you're offered, but you'll also want to make sure the lender's maximum loan amount is high enough for your needs. While you can generally repay part or all of the loan early without a penalty, minimum amounts may be important if the lender charges an origination fee. You may also find the minimum loan amount in your state is higher than the lenders' general minimums.\n*   **Residency requirements**: While you won't need to visit a bank branch to get a personal loan from an online lender, lenders might not be approved to offer loans in every state. You don't have any control over this, but it's worth keeping in mind that your options may vary depending on where you live.\n*   **Origination or administrative fee**: Unless you have good to excellent credit, many personal loans will require an upfront origination or administrative fee. The fee is often taken out of the loan amount, which you'll want to consider when you're determined how much to borrow.\n*   **Repayment terms**: The repayment term can also impact your monthly payment and interest rate. If you want to get a low rate and pay off the debt quickly, look for a lender that offers short repayment terms. However, if you'd prefer a lower monthly payment, a longer repayment term may be a better fit.\n*   **APR ranges**: Many lenders will advertise an APR range. You won't know which rate you'll receive until you get prequalified or receive a loan offer. However, the range could help you determine whether the lender focuses on borrowers with excellent, good or poor credit (a lower minimum APR may correlate with higher credit requirements).\n*   **Time to funding**: If you need money ASAP, some lenders can transfer the funds into your bank account within one or two business days of processing your application. Make sure you have identification and verification documents, such as recent pay stubs or tax forms, ready to prevent delays.\n*   **A cosigner option**: If you can't qualify for a personal loan on your own, some companies allow you to add a cosigner to your application. A creditworthy cosigner could help you get approved and qualify you for a better offer, but the cosigner's credit will also be on the line.\nAfter narrowing down your lender options, you can often start with a prequalification application online. Getting prequalified doesn't guarantee you'll be approved, especially if there's a big change in your creditworthiness before you apply, but it can still be helpful.\nPrequalification usually requires a soft inquiry—which won't hurt your credit—and can help show you possible loan offers. If you're prequalified, you can then decide to submit an application, which may require a hard inquiry that can hurt your credit a little. If you don't get prequalified, you can rule out the lender without submitting an application or potentially hurting your credit.\nYou can also use a service, such as Experian's CreditMatch™, to compare lenders. Once you're signed in, you can even submit a single loan prequalification application to quickly get prequalified offers from multiple Experian personal loan partners. END
 TITLE: Seven Top Online Personal Loan Lenders CONTENT: SoFi\n----\n[](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)[Apply](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)\non SoFi's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $5,000 to $100,000\nEst. monthly payment: $217 to $4,944\nGrace period: 10 days\nApplication fee: $0\n##### Loan Details\n*   Personal Loans with low fixed rates\n*   Borrow up to $100,000\n*   No Origination Fees, No Prepayment Penalties, and No Late or Overdraft Fees\n*   Simple online application with live support 7 days a week\n*   Apply Now\nDisclosure\nFor borrowers with good to excellent credit, SoFi is a top lender to consider due to its low rates and fees. It offers personal loans of up to $100,000—a higher limit than many competitors—and doesn't charge any application or origination fees. The interest rate range also starts low compared with other lenders, and borrowers may qualify for additional benefits, such as free meetings with a financial planner or career coach. END
 TITLE: Seven Top Online Personal Loan Lenders CONTENT: Upgrade\n-------\n[](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)[Apply](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)\non Upgrade's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,095\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Affordable loans from $1,000 - $50,000 with low fixed rates that will never change, affordable monthly payments, and no prepayment penalties\n*   Quick online application -- get pre-approved in just minutes\n*   Checking your rate won't impact your credit score\n*   Review multiple loan options so you can pick the amount and term that fits your budget and timeline\n*   With automatic payments and a customizable due date, managing your account is easy and you'll be able to circle the date on your calendar when you'll be debt free\nDisclosure\nUpgrade's personal loan offering stands out due to its wide range for rates, loan amounts and origination fee, which can be 2.9% to 8%. It also allows you to apply with a cosigner. However, there are only two repayment terms to choose from—three or five years.  \n### Upstart\n[](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)[Apply](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)\non Upstart's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,262\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Loan amounts from $1,000 - $50,000\n*   APRs from 6.46% - 35.99% with loan terms of 3 or 5 years\n*   Won't affect your credit score\n*   You can have funds in as fast as 1 day\n*   You are more than your credit score. On Upstart your education and experience help you get the rate you deserve.\nDisclosure\nUpstart is a lending platform that focuses on borrowers with less-than-excellent credit, and stands apart from other lenders with its unique underwriting process. When reviewing your application, Upstart considers traditional factors, such as your credit, income and debts as well as alternative data, like whether you graduated college, your major and your grade-point average. As a result, applicants with fair to good credit may get approved for larger loans or lower interest rates with Upstart than other lenders. Upstart's origination fee ranges from 0% to 8%.  \nHow to Choose a Personal Loan Lender\n------------------------------------\nBefore you apply for a personal loan, you may want to review lenders' requirements and loan offers. Here are some of the things you'll want to consider:\n*   **Your loan use**: While you can use a personal loan for almost anything, there may be some restrictions. For example, rules may vary on whether you can use the funds for business, educational or investment purposes.\n*   **Your credit**: Lenders may have a minimum credit score requirement. You can get a free FICO® Score☉ from Experian to see where you currently stand.\n*   **Minimum and maximum loan amounts**: Your creditworthiness may determine the loan size you're offered, but you'll also want to make sure the lender's maximum loan amount is high enough for your needs. While you can generally repay part or all of the loan early without a penalty, minimum amounts may be important if the lender charges an origination fee. You may also find the minimum loan amount in your state is higher than the lenders' general minimums.\n*   **Residency requirements**: While you won't need to visit a bank branch to get a personal loan from an online lender, lenders might not be approved to offer loans in every state. You don't have any control over this, but it's worth keeping in mind that your options may vary depending on where you live.\n*   **Origination or administrative fee**: Unless you have good to excellent credit, many personal loans will require an upfront origination or administrative fee. The fee is often taken out of the loan amount, which you'll want to consider when you're determined how much to borrow.\n*   **Repayment terms**: The repayment term can also impact your monthly payment and interest rate. If you want to get a low rate and pay off the debt quickly, look for a lender that offers short repayment terms. However, if you'd prefer a lower monthly payment, a longer repayment term may be a better fit.\n*   **APR ranges**: Many lenders will advertise an APR range. You won't know which rate you'll receive until you get prequalified or receive a loan offer. However, the range could help you determine whether the lender focuses on borrowers with excellent, good or poor credit (a lower minimum APR may correlate with higher credit requirements).\n*   **Time to funding**: If you need money ASAP, some lenders can transfer the funds into your bank account within one or two business days of processing your application. Make sure you have identification and verification documents, such as recent pay stubs or tax forms, ready to prevent delays.\n*   **A cosigner option**: If you can't qualify for a personal loan on your own, some companies allow you to add a cosigner to your application. A creditworthy cosigner could help you get approved and qualify you for a better offer, but the cosigner's credit will also be on the line.\nAfter narrowing down your lender options, you can often start with a prequalification application online. Getting prequalified doesn't guarantee you'll be approved, especially if there's a big change in your creditworthiness before you apply, but it can still be helpful.\nPrequalification usually requires a soft inquiry—which won't hurt your credit—and can help show you possible loan offers. If you're prequalified, you can then decide to submit an application, which may require a hard inquiry that can hurt your credit a little. If you don't get prequalified, you can rule out the lender without submitting an application or potentially hurting your credit.\nYou can also use a service, such as Experian's CreditMatch™, to compare lenders. Once you're signed in, you can even submit a single loan prequalification application to quickly get prequalified offers from multiple Experian personal loan partners. END
 TITLE: Seven Top Online Personal Loan Lenders CONTENT: Upgrade\n-------\n[](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)[Apply](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)\non Upgrade's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,095\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Affordable loans from $1,000 - $50,000 with low fixed rates that will never change, affordable monthly payments, and no prepayment penalties\n*   Quick online application -- get pre-approved in just minutes\n*   Checking your rate won't impact your credit score\n*   Review multiple loan options so you can pick the amount and term that fits your budget and timeline\n*   With automatic payments and a customizable due date, managing your account is easy and you'll be able to circle the date on your calendar when you'll be debt free\nDisclosure\nUpgrade's personal loan offering stands out due to its wide range for rates, loan amounts and origination fee, which can be 2.9% to 8%. It also allows you to apply with a cosigner. However, there are only two repayment terms to choose from—three or five years. END
 TITLE: Seven Top Online Personal Loan Lenders CONTENT: ### Upstart\n[](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)[Apply](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)\non Upstart's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,262\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Loan amounts from $1,000 - $50,000\n*   APRs from 6.46% - 35.99% with loan terms of 3 or 5 years\n*   Won't affect your credit score\n*   You can have funds in as fast as 1 day\n*   You are more than your credit score. On Upstart your education and experience help you get the rate you deserve.\nDisclosure\nUpstart is a lending platform that focuses on borrowers with less-than-excellent credit, and stands apart from other lenders with its unique underwriting process. When reviewing your application, Upstart considers traditional factors, such as your credit, income and debts as well as alternative data, like whether you graduated college, your major and your grade-point average. As a result, applicants with fair to good credit may get approved for larger loans or lower interest rates with Upstart than other lenders. Upstart's origination fee ranges from 0% to 8%.  \nHow to Choose a Personal Loan Lender\n------------------------------------\nBefore you apply for a personal loan, you may want to review lenders' requirements and loan offers. Here are some of the things you'll want to consider:\n*   **Your loan use**: While you can use a personal loan for almost anything, there may be some restrictions. For example, rules may vary on whether you can use the funds for business, educational or investment purposes.\n*   **Your credit**: Lenders may have a minimum credit score requirement. You can get a free FICO® Score☉ from Experian to see where you currently stand.\n*   **Minimum and maximum loan amounts**: Your creditworthiness may determine the loan size you're offered, but you'll also want to make sure the lender's maximum loan amount is high enough for your needs. While you can generally repay part or all of the loan early without a penalty, minimum amounts may be important if the lender charges an origination fee. You may also find the minimum loan amount in your state is higher than the lenders' general minimums.\n*   **Residency requirements**: While you won't need to visit a bank branch to get a personal loan from an online lender, lenders might not be approved to offer loans in every state. You don't have any control over this, but it's worth keeping in mind that your options may vary depending on where you live.\n*   **Origination or administrative fee**: Unless you have good to excellent credit, many personal loans will require an upfront origination or administrative fee. The fee is often taken out of the loan amount, which you'll want to consider when you're determined how much to borrow.\n*   **Repayment terms**: The repayment term can also impact your monthly payment and interest rate. If you want to get a low rate and pay off the debt quickly, look for a lender that offers short repayment terms. However, if you'd prefer a lower monthly payment, a longer repayment term may be a better fit.\n*   **APR ranges**: Many lenders will advertise an APR range. You won't know which rate you'll receive until you get prequalified or receive a loan offer. However, the range could help you determine whether the lender focuses on borrowers with excellent, good or poor credit (a lower minimum APR may correlate with higher credit requirements).\n*   **Time to funding**: If you need money ASAP, some lenders can transfer the funds into your bank account within one or two business days of processing your application. Make sure you have identification and verification documents, such as recent pay stubs or tax forms, ready to prevent delays.\n*   **A cosigner option**: If you can't qualify for a personal loan on your own, some companies allow you to add a cosigner to your application. A creditworthy cosigner could help you get approved and qualify you for a better offer, but the cosigner's credit will also be on the line.\nAfter narrowing down your lender options, you can often start with a prequalification application online. Getting prequalified doesn't guarantee you'll be approved, especially if there's a big change in your creditworthiness before you apply, but it can still be helpful.\nPrequalification usually requires a soft inquiry—which won't hurt your credit—and can help show you possible loan offers. If you're prequalified, you can then decide to submit an application, which may require a hard inquiry that can hurt your credit a little. If you don't get prequalified, you can rule out the lender without submitting an application or potentially hurting your credit.\nYou can also use a service, such as Experian's CreditMatch™, to compare lenders. Once you're signed in, you can even submit a single loan prequalification application to quickly get prequalified offers from multiple Experian personal loan partners. END
 TITLE: Seven Top Online Personal Loan Lenders CONTENT: ### Upstart\n[](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)[Apply](;site=exp&placement=ae-single-embed&sessionid=7DC4F926-AD10-0AE0-DEC2-C524EC708C74&pageid=blogs:ask-experian:top-online-personal-loan-lenders&previouspageid=&ecsstaticid=4A46841E-3318-C796-9991-99E9B65F2344)\non Upstart's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,262\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Loan amounts from $1,000 - $50,000\n*   APRs from 6.46% - 35.99% with loan terms of 3 or 5 years\n*   Won't affect your credit score\n*   You can have funds in as fast as 1 day\n*   You are more than your credit score. On Upstart your education and experience help you get the rate you deserve.\nDisclosure\nUpstart is a lending platform that focuses on borrowers with less-than-excellent credit, and stands apart from other lenders with its unique underwriting process. When reviewing your application, Upstart considers traditional factors, such as your credit, income and debts as well as alternative data, like whether you graduated college, your major and your grade-point average. As a result, applicants with fair to good credit may get approved for larger loans or lower interest rates with Upstart than other lenders. Upstart's origination fee ranges from 0% to 8%. END
 TITLE: Seven Top Online Personal Loan Lenders CONTENT: How to Choose a Personal Loan Lender\n------------------------------------\nBefore you apply for a personal loan, you may want to review lenders' requirements and loan offers. Here are some of the things you'll want to consider:\n*   **Your loan use**: While you can use a personal loan for almost anything, there may be some restrictions. For example, rules may vary on whether you can use the funds for business, educational or investment purposes.\n*   **Your credit**: Lenders may have a minimum credit score requirement. You can get a free FICO® Score☉ from Experian to see where you currently stand.\n*   **Minimum and maximum loan amounts**: Your creditworthiness may determine the loan size you're offered, but you'll also want to make sure the lender's maximum loan amount is high enough for your needs. While you can generally repay part or all of the loan early without a penalty, minimum amounts may be important if the lender charges an origination fee. You may also find the minimum loan amount in your state is higher than the lenders' general minimums.\n*   **Residency requirements**: While you won't need to visit a bank branch to get a personal loan from an online lender, lenders might not be approved to offer loans in every state. You don't have any control over this, but it's worth keeping in mind that your options may vary depending on where you live.\n*   **Origination or administrative fee**: Unless you have good to excellent credit, many personal loans will require an upfront origination or administrative fee. The fee is often taken out of the loan amount, which you'll want to consider when you're determined how much to borrow.\n*   **Repayment terms**: The repayment term can also impact your monthly payment and interest rate. If you want to get a low rate and pay off the debt quickly, look for a lender that offers short repayment terms. However, if you'd prefer a lower monthly payment, a longer repayment term may be a better fit.\n*   **APR ranges**: Many lenders will advertise an APR range. You won't know which rate you'll receive until you get prequalified or receive a loan offer. However, the range could help you determine whether the lender focuses on borrowers with excellent, good or poor credit (a lower minimum APR may correlate with higher credit requirements).\n*   **Time to funding**: If you need money ASAP, some lenders can transfer the funds into your bank account within one or two business days of processing your application. Make sure you have identification and verification documents, such as recent pay stubs or tax forms, ready to prevent delays.\n*   **A cosigner option**: If you can't qualify for a personal loan on your own, some companies allow you to add a cosigner to your application. A creditworthy cosigner could help you get approved and qualify you for a better offer, but the cosigner's credit will also be on the line.\nAfter narrowing down your lender options, you can often start with a prequalification application online. Getting prequalified doesn't guarantee you'll be approved, especially if there's a big change in your creditworthiness before you apply, but it can still be helpful.\nPrequalification usually requires a soft inquiry—which won't hurt your credit—and can help show you possible loan offers. If you're prequalified, you can then decide to submit an application, which may require a hard inquiry that can hurt your credit a little. If you don't get prequalified, you can rule out the lender without submitting an application or potentially hurting your credit.\nYou can also use a service, such as Experian's CreditMatch™, to compare lenders. Once you're signed in, you can even submit a single loan prequalification application to quickly get prequalified offers from multiple Experian personal loan partners. END
 TITLE: Bad Credit? Here’s What You Need to Know About Balance Transfers CONTENT: Can You Get Approved for a Balance Transfer Card With Bad Credit?\n-----------------------------------------------------------------\nWhen you're approved for a traditional unsecured balance transfer credit card, you'll generally receive an annual percentage rate (APR) of 0% for a period of time, letting you pay off credit card debt interest-free. One caveat: You'll usually pay a one-time fee, generally 3% of the transferred amount.\nCredit card companies offer deals like this because they want your business. You typically can't transfer a balance between cards issued by the same financial institution, so a balance transfer is a way for issuers to take on new customers. It's most beneficial for them, however, if you have a history of on-time payments and are likely to pay off the debt as agreed.\nIn turn, you generally must have a high credit score to get a balance transfer card. With bad credit, or a score of 669 or lower (and especially 579 or lower), you likely won't qualify. END
 TITLE: Bad Credit? Here’s What You Need to Know About Balance Transfers CONTENT: What to Do if You Can't Get a Balance Transfer Credit Card\n----------------------------------------------------------\nYou have several alternatives if a balance transfer card isn't an option for you:\n*   **Look into secured credit cards with low introductory balance transfer offers.** You'll pay a deposit that typically becomes your credit limit, so you'll need to feel comfortable paying cash upfront. If you are, you may be able to take advantage of a balance transfer offer that may be lower than what you're paying now. Plus, making timely payments on a secured credit card can help you build credit. If you stay consistent with your payments, you'll generally be able to transition the card to an unsecured version.\n*   **Transfer a balance to an existing card with a lower interest rate.** This option lets you avoid applying for new credit—and the associated hard inquiry, which can affect your credit score briefly. Instead, contact your current card issuers to see if they have any balance transfer offers available. Make sure to ask when the promotional period ends, and what APR you'll be charged after that point. It's crucial to pay off balances before your APR jumps, potentially making it more difficult to get rid of debt.\n*   **Improve your credit score** and apply for an unsecured balance transfer card later. Pull copies of your credit report from each of the three credit bureaus (Experian, TransUnion and Equifax), which you can do for free once a year via AnnualCreditReport.com. As you reduce your debt, and avoid adding to it, your credit utilization ratio—your debt relative to your credit limits—will decrease. Since your credit utilization plays a major role in determining your credit score, reducing it might help put you into the good to excellent score range. At that point, you may qualify for a 0% APR offer to pay off the rest of the balance.\nHow to Pay Down Debt Without Transferring a Balance\n---------------------------------------------------\nYou may choose not to transfer a balance to a new credit card at all. Perhaps you'd like to avoid adding a new card to your wallet, or your credit score disqualifies you.\nIf you'd like to attack debt on your own, consider looking for ways to add to your income or reduce expenses so you can apply more resources toward your balances. You can also try these alternatives:\n*   **A debt consolidation loan**: This method also transfers a credit card balance, but it's shifted to a personal loan instead of another credit card. You can combine other types of debt within the loan too. If you qualify for an interest rate that's lower than what you already pay, you could see savings similar to a balance transfer credit card, but you'll still need to apply and get approved for the loan. You likely won't get an APR of 0%, but make sure the rate you're quoted is low enough to save you money.\n*   **Call your credit card issuer and ask for a lower interest rate**: Your issuer is particularly likely to agree if you've made all your payments on time and you've been a customer for a while. Try again in a few months if you're not successful right away.\n*   **Work with a nonprofit credit counseling agency**: These organizations can offer a free initial consultation on your debt situation and suggest payoff strategies. Search for a certified counselor through the National Foundation for Credit Counseling when you're ready to get started.\nThe Bottom Line\n---------------\nBad credit shouldn't keep you from making strides toward debt freedom. In fact, lowering your balances and consistently making payments toward debt could bolster your credit score. So instead, if you have a credit score you'd like to improve, you should feel even more motivated to get credit card debt under control.\nIf a traditional balance transfer isn't in the cards for you, stay open to other options. Seek out help from a professional—particularly a credit counselor—if you're unsure where to turn. With organization, motivation and a plan you follow through on, you can pay off debt with or without a balance transfer—and with bad credit or good. END
 TITLE: Bad Credit? Here’s What You Need to Know About Balance Transfers CONTENT: How to Pay Down Debt Without Transferring a Balance\n---------------------------------------------------\nYou may choose not to transfer a balance to a new credit card at all. Perhaps you'd like to avoid adding a new card to your wallet, or your credit score disqualifies you.\nIf you'd like to attack debt on your own, consider looking for ways to add to your income or reduce expenses so you can apply more resources toward your balances. You can also try these alternatives:\n*   **A debt consolidation loan**: This method also transfers a credit card balance, but it's shifted to a personal loan instead of another credit card. You can combine other types of debt within the loan too. If you qualify for an interest rate that's lower than what you already pay, you could see savings similar to a balance transfer credit card, but you'll still need to apply and get approved for the loan. You likely won't get an APR of 0%, but make sure the rate you're quoted is low enough to save you money.\n*   **Call your credit card issuer and ask for a lower interest rate**: Your issuer is particularly likely to agree if you've made all your payments on time and you've been a customer for a while. Try again in a few months if you're not successful right away.\n*   **Work with a nonprofit credit counseling agency**: These organizations can offer a free initial consultation on your debt situation and suggest payoff strategies. Search for a certified counselor through the National Foundation for Credit Counseling when you're ready to get started. END
 TITLE: Bad Credit? Here’s What You Need to Know About Balance Transfers CONTENT: The Bottom Line\n---------------\nBad credit shouldn't keep you from making strides toward debt freedom. In fact, lowering your balances and consistently making payments toward debt could bolster your credit score. So instead, if you have a credit score you'd like to improve, you should feel even more motivated to get credit card debt under control.\nIf a traditional balance transfer isn't in the cards for you, stay open to other options. Seek out help from a professional—particularly a credit counselor—if you're unsure where to turn. With organization, motivation and a plan you follow through on, you can pay off debt with or without a balance transfer—and with bad credit or good. END
 TITLE: 5 Ways to Make the Most of Your Balance Transfer Card CONTENT: 1\\. Take an inventory of all your existing credit card debt.\n------------------------------------------------------------\nBefore transferring anything to your new card, make a list of all your existing credit card balances and the APRs associated with each account. This will help you understand how much total debt you have and identify which balances you want to transfer first. Depending on the terms of your new balance transfer card, you may not be able to transfer all of your existing credit card debt. Transfer the debt with the highest APR first so you can maximize your savings. Then transfer as much of the remaining balances as you think you can pay off during the offer period, starting with the accounts that have the highest APRs and working down from there. END
 TITLE: 5 Ways to Make the Most of Your Balance Transfer Card CONTENT: 2\\. Make sure you understand the terms and conditions of your new card.\n-----------------------------------------------------------------------\nTerms and conditions can vary from card to card, so dig into the details to make sure you're using your card properly. First, you need to know what your APR is, both for balance transfers and new purchases. These rates may differ, and knowing each could help you save money. Just because a card has a 0% APR on balance transfers doesn't mean it has a 0% APR on purchases. And vice versa.\nAlso, consider not using your card for new purchases. If you dig into the terms, some balance transfer cards actually specify that if you transfer a balance, any new purchases you make will be charged interest unless you have a special 0% APR offer on purchases. Even if you pay your new purchases in full before the end of the month, some cards will still charge you interest unless you pay your entire balance (including the balance transfer) before the end of that pay period.\nFinally, look for any fees associated with transferring balances. Balance transfer cards typically charge a fee of 3% to 5% on the transfer amount, with some stipulating a minimum charge, such as $20.\nYou could lose your introductory rate in certain circumstances, such as paying your bill more than 30 days past the due date, so read the terms and conditions thoroughly before you begin using your new card.\n> Find balance transfer credit cards in Experian CreditMatch™.\n3\\. Establish a repayment plan.\n-------------------------------\nOnce you've transferred balances to your new card, make a plan outlining how you'll get rid of the debt. Try to base your plan on how much time your new card allows you to carry an interest-free balance. If your card offers 12 months of 0% APR, for example, you might want to calculate how much you would have to pay each month to pay off your debt within the 12-month period. Check the details of your card agreement before crafting a plan.\nIf you're strapped for cash, pay what you can afford as long as it satisfies the card's monthly minimum. The bottom line: The more money you can throw at your debt each month, the faster it will go away.\n4\\. Make all your payments on time.\n-----------------------------------\nPayment history is the most important aspect of your credit score, and even one late or missed payment can have an impact on your score. Missing payments can also set back your repayment plan and cause you to incur costly late fees.\nIn addition, missing a payment could actually endanger the APR benefit that led you to get the card in the first place. Depending on the card, a \"penalty APR\" may be assigned, and your reduced APR could disappear. Make all your payments on time and be sure to check the terms of your card agreement so you know what to expect if you miss a payment.\n> Find balance transfer credit cards in Experian CreditMatch™.\n5\\. Don't close your other cards after you've transferred your balances.\n------------------------------------------------------------------------\nOnce you've transferred your balances to the new card, think twice before closing your other credit cards. Closing a credit account can reduce your credit history, which can impact your credit scores. It can also cause your credit utilization ratio to increase because you may be using a higher percentage of your available credit with fewer cards—another factor that might lower your credit scores. Unless you are having trouble affording the annual fees, try keeping your credit accounts open—but not using them.\nBalance transfer credit cards can offer a great way to help you pay off debt while also saving you money, as long as you use them wisely.Balance transfer credit cards can offer a great way to help you pay off debt while also saving you money, as long as you use them wisely. END
 TITLE: 5 Ways to Make the Most of Your Balance Transfer Card CONTENT: Finally, look for any fees associated with transferring balances. Balance transfer cards typically charge a fee of 3% to 5% on the transfer amount, with some stipulating a minimum charge, such as $20.\nYou could lose your introductory rate in certain circumstances, such as paying your bill more than 30 days past the due date, so read the terms and conditions thoroughly before you begin using your new card.\n> Find balance transfer credit cards in Experian CreditMatch™. END
 TITLE: 5 Ways to Make the Most of Your Balance Transfer Card CONTENT: 3\\. Establish a repayment plan.\n-------------------------------\nOnce you've transferred balances to your new card, make a plan outlining how you'll get rid of the debt. Try to base your plan on how much time your new card allows you to carry an interest-free balance. If your card offers 12 months of 0% APR, for example, you might want to calculate how much you would have to pay each month to pay off your debt within the 12-month period. Check the details of your card agreement before crafting a plan.\nIf you're strapped for cash, pay what you can afford as long as it satisfies the card's monthly minimum. The bottom line: The more money you can throw at your debt each month, the faster it will go away. END
 TITLE: 5 Ways to Make the Most of Your Balance Transfer Card CONTENT: 4\\. Make all your payments on time.\n-----------------------------------\nPayment history is the most important aspect of your credit score, and even one late or missed payment can have an impact on your score. Missing payments can also set back your repayment plan and cause you to incur costly late fees.\nIn addition, missing a payment could actually endanger the APR benefit that led you to get the card in the first place. Depending on the card, a \"penalty APR\" may be assigned, and your reduced APR could disappear. Make all your payments on time and be sure to check the terms of your card agreement so you know what to expect if you miss a payment.\n> Find balance transfer credit cards in Experian CreditMatch™. END
 TITLE: 5 Ways to Make the Most of Your Balance Transfer Card CONTENT: 5\\. Don't close your other cards after you've transferred your balances.\n------------------------------------------------------------------------\nOnce you've transferred your balances to the new card, think twice before closing your other credit cards. Closing a credit account can reduce your credit history, which can impact your credit scores. It can also cause your credit utilization ratio to increase because you may be using a higher percentage of your available credit with fewer cards—another factor that might lower your credit scores. Unless you are having trouble affording the annual fees, try keeping your credit accounts open—but not using them.\nBalance transfer credit cards can offer a great way to help you pay off debt while also saving you money, as long as you use them wisely.Balance transfer credit cards can offer a great way to help you pay off debt while also saving you money, as long as you use them wisely. END
 TITLE: Will Paying My Mobile Phone Bill Late Hurt My Credit Score? CONTENT: Can a Late Mobile Phone Payment Hurt My Credit Score?\n-----------------------------------------------------\nWith most credit scoring models, late mobile payments won't have an impact on your credit score unless the account goes to collections or the service provider charges off the debt.\nDepending on the provider, this likely won't happen if you miss just one payment. But if you miss multiple payments or allow an unpaid bill to stay that way, the provider may close your account and use a debt collector to obtain payment, or simply write it off as uncollectible.\nBecause your payment history is generally the most important factor in your credit score, a collections account or charged-off debt can have a major negative impact on your credit score. What's more, the negative item will remain on your credit report for seven years.\nWhile that doesn't mean your credit score will stay down for that long—new positive information can help offset old negative information—it can take time and effort to recover and rebuild. END
 TITLE: Will Paying My Mobile Phone Bill Late Hurt My Credit Score? CONTENT: Can On-Time Mobile Phone Payments Help My Credit Score?\n-------------------------------------------------------\nMaking on-time debt payments can be the most important thing you do to improve your credit score. But mobile phone and other telecom and utility accounts aren't considered credit accounts.\nSo while defaulting on your mobile phone bill can damage your credit score, paying it on time has, in the past, had no effect at all.\nUntil now. Experian Boost™† now allows consumers to use their mobile phone and other telecom and utility bills to get recognition for positive payment history and increase their FICO® Score☉ .\nExperian Boost is an online tool that allows you to grant permission to Experian to access your bank account and identify utility and telecom payments. Once you confirm that the information is correct and request to have it added to your Experian credit file, you could see an immediate boost to your score.\nBased on Experian research, 10% of consumers who didn't have enough credit history to have a credit score became scoreable after using Experian Boost. Also, 75% of consumers with FICO® Scores under 680 saw a credit score increase after using the tool. END
 TITLE: Will Paying My Mobile Phone Bill Late Hurt My Credit Score? CONTENT: Other Ways to Improve Your Credit\n---------------------------------\nFive factors go into the calculation of your FICO® Score. Here's what they are and what you can do to improve on each:\n*   **Payment history**: Make it a goal to pay all your credit accounts on time each month. If you have any delinquent or collections accounts, try to get current as quickly as possible.\n*   **Amounts owed**: This factor is primarily driven by your credit utilization rate, or your credit card balances divided by their credit limits. If you carry a balance from month to month, work to pay it off. Then try to keep your balance low relative to the card's limit going forward.\n*   **Length of credit history**: The more time you spend using credit responsibly, the better your credit score will be. This factor takes time to build, so it's important to develop and sustain good credit habits now for the future.\n*   **Credit mix**: Having a good credit mix shows that you can responsibly manage different types of debt. As a result, it's good to have various credit accounts, including a mortgage, an auto loan, student loans, and a credit card. That said, this factor doesn't have as much of an impact as others, so it may not be wise to take out debt just for the sake of building your credit.\n*   **New credit**: Every time you apply for a credit account, the lender runs a hard inquiry on your credit report. For most people, the inquiry will only knock a few points off your score. But if you apply for multiple accounts in a short period—rate shopping excluded—it can have a compounding effect. So try to space out credit applications. END
 TITLE: Will Paying My Mobile Phone Bill Late Hurt My Credit Score? CONTENT: Next Steps\n----------\nIf you're late on a mobile phone payment, make it a priority to get current on the account before your service provider sends it to collections or charges it off. Going forward, work to pay your monthly bill on time.\nAs you build up more on-time payments, Experian Boost can use the data to help increase your credit score. And don't worry if you've made a couple late payments in the recent past—Experian Boost won't include it in your new FICO® Score. END
 TITLE: An Essential Guide to How Credit Works CONTENT: What Are the Types of Credit Accounts?\n--------------------------------------\nThere are two primary types of credit accounts you may come across, depending on the situation and your needs: installment and revolving.\n### Installment Credit\nInstallment credit involves a lender extending an amount of credit upfront, and you agreeing to repay the debt in regular installments over a fixed period. Most loans, including mortgages, auto loans, student loans and personal loans, are considered installment credit.\nDepending on the type of loan, the repayment period with installment credit can range from months to several years or even decades. And while payments may not be fixed for the life of the loan, especially when a variable interest rate is involved, you'll typically always know when the loan will be repaid in full.\n### Revolving Credit\nRevolving credit allows consumers to borrow money using a line of credit when they need it, rather than getting it all in the beginning. You can typically borrow up to a certain limit, but once you pay down some or all of the debt you've incurred, you can re-borrow up to that same limit, repeating the process over and over again.\nCredit cards are the most popular form of revolving credit, although lines of credit also fall into this category. Unlike installment credit, revolving credit doesn't have a set repayment period. And if you have no debt outstanding at the moment, you aren't required to make any payments.\nThat said, revolving credit can become expensive if you carry a balance over time and make just the minimum required payments. END
 TITLE: An Essential Guide to How Credit Works CONTENT: What Is a Credit Report?\n------------------------\nA credit report contains a history of your dealings with credit. You have three credit reports, one from each of the three national credit reporting agencies: Experian, Equifax and TransUnion.\nYour credit report lists all of the accounts you've opened and closed in the recent past, along with how you've managed each. For example, if you've missed a payment or had an account sent to collections, it will show up on your credit report.\nYour credit report also lists other records, including bankruptcies, foreclosures, repossessions and other information that shows potential red flags to lenders. At the same time, on-time payments and longstanding responsible credit use will also be reflected in your report.\nFinally, your credit report lists other basic information, including your name, including aliases and misspellings reported by creditors; your birth date; Social Security number; current and past addresses; and recent inquiries that creditors have made to view your report.\n### How Does Credit Reporting Work?\nThe national credit reporting agencies collect information from lenders who report it. For example, if you have a credit card, it's likely that your card's issuer reports your account activity to one or more credit reporting agencies once a month.\nThe agencies then collect and organize the information into tradelines, which is a term used to describe individual credit accounts. Depending on the type of credit, you may see several different pieces of data, including your recent payment history, monthly payment, balance, original loan amount and more.\nIt's important to note that financial institutions aren't legally required to report account information to the credit reporting agencies. As a result, not all credit activity helps improve your credit history. Most banks, credit unions and other lenders, however, report to the agencies regularly.\n### How Do I Get My Credit Report?\nU.S. consumers have the legal right to get one free copy of their credit report from each of the credit reporting agencies every 12 months. You can request your free copy at AnnualCreditReport.com.\nIf you want regular access, you can typically get it from a free or paid service. For example, Experian offers free credit report access that's updated every 30 days on sign in, allowing you to track changes over short periods of time. END
 TITLE: An Essential Guide to How Credit Works CONTENT: What Is a Credit Score?\n-----------------------\nYour credit score is a numerical representation of the information that can be found on your credit report. It provides you and others with a snapshot of your overall credit health.\nWhile there are many different types of credit scores, the most widely used scoring model is the FICO® Score☉ , which has a range of 300 to 850. In general, the higher your credit score, the more responsible you've been with credit.\n### How Is a Credit Score Calculated?\nThe FICO® Score is based on five different factors:\n*   **Payment history (35%)**: This component shows your ability to make on-time payments and avoid delinquent and collection accounts. The more positive your payment history, the better your score.\n*   **Amount owed (30%)**: This factor includes the total amount you owe, as well as your credit utilization ratio, which is the percentage of available credit you're using on each credit card, as well as across all of your credit card accounts. The lower your credit card balances relative to their limits, the better it is for your credit score.\n*   **Length of credit history (15%)**: This element takes into account both how long you've been using credit in general and the average age of all your accounts. As a result, avoiding unnecessary borrowing and using credit over time are both good things.\n*   **Credit mix (10%)**: This credit factor considers the different types of credit accounts you have, such as credit cards, student loans, mortgage loans, auto loans and more. In general, though, your credit mix won't affect your score much unless your credit report doesn't have a lot of other information to use to calculate your score.\n*   **New credit (10%)**: Every time you apply for credit and a creditor runs a hard inquiry on your report, it could knock a few points off your credit score. If you apply for multiple credit accounts in a short period, it could be a red flag to potential lenders.\nDepending on where your credit score stands, these are the factors you should examine to determine what needs to be addressed to improve your credit history.\nAnother credit score you might see around but which isn't as popular as the FICO® Score is the VantageScore®. This scoring model includes many of the same factors but may weight them differently. As a result, your FICO® Score and VantageScore may often be in the same ballpark.  \n### What Is a Good Credit Score?\nA good credit score can open a lot of opportunities when it comes to getting credit. Whether you're looking at a FICO® Score or a VantageScore, however, what's considered a good credit score can differ. Here are the ranges for each:\n**FICO® Score**\n*   **Exceptional**: 800 to 850\n*   **Very good**: 740: to 799\n*   **Good**: 670 to 739\n*   **Fair**: 580 to 669\n*   **Poor**: 300 to 579\n**VantageScore**\n*   **Excellent**: 781 to 850\n*   **Good**: 661 to 780\n*   **Fair**: 601 to 660\n*   **Poor**: 500 to 600\n*   **Very poor**: 300 to 499\nIf you check your credit score and see that it's not quite in the good range or above, consider taking some time to work on improving it before you apply for credit next.\n### How Do I Check My Credit Score?\nThere are several ways to check your credit score. For example, you can check your FICO® Score for free through Experian or get it from another website that offers free access to your score. Just keep in mind that what you get may not necessarily be the same score lenders use.\nAnother way to check your credit score is through one of your lenders. Many banks, credit unions and other financial institutions provide customers with free access to view their credit score. Also, if you're working with a credit counseling agency, you may be able to check it through your counselor. END
 TITLE: An Essential Guide to How Credit Works CONTENT: Why Is Credit Important?\n------------------------\nFor most consumers, building a solid credit history is an important step in establishing their financial security. Not only is credit important to borrowing at favorable rates, but it can also help you get a job, get into an apartment, lower your auto and homeowner's insurance rates, avoid a deposit on a utility agreement, and more.\nAs you manage your credit wisely, you build overall financial health that can help you achieve your goals. Keeping your credit utilization low, for example, frees up money you can use to put toward saving for a down payment on a car or a home, your retirement, or your child's college tuition. A good credit score will also save you money on loans you take out, again leaving more money available to help you get on strong financial footing.\nSo whether or not you plan to borrow money anytime soon, it's a good idea to have a good credit score. END
 TITLE: An Essential Guide to How Credit Works CONTENT: How to Build Credit\n-------------------\nEstablishing a solid credit history can take time, effort and a lot of patience. Fortunately, however, knowing what goes into your credit score can give you ideas on how to build credit. Ideas include:\n*   **Use credit regularly**: It can be difficult for lenders to know how responsible you are with credit if you never use it. In fact, FICO requires that you have credit-related activity in the past six months to even qualify for a score.\n*   **Establish a positive payment history**: Making your payments on time every month is essential to building credit, so make that a goal. Also, if you've fallen behind on some accounts, try to get caught up as quickly as possible.\n*   **Keep your credit card balances low**: Credit cards are excellent tools for building credit because as long as you pay off your bills on time and in full each month, you can establish a history without ever paying interest. But if you rack up a high balance, it could be a sign that you're overextended financially. Even if your credit limit is only a few hundred dollars, try to keep your utilization rate as low as possible.\n*   **Borrow wisely**: Applying for multiple loans or credit cards in a short period can hurt your credit, and taking on too much debt can make it more difficult to keep up with your payments. As a result, it's a good idea to avoid borrowing unless you absolutely need to. And before you apply, make sure you can afford the monthly payments associated with the new account.\n*   **Keep track of your credit score and reports**: It's a good idea to check your credit score and reports regularly to make sure everything is running smoothly. If you notice a sudden drop in your score, it's best to address it sooner than later. And if you see an account show up on your credit report that you don't recognize, it could be erroneous or fraudulent. If so, you can dispute the tradeline with the credit reporting agencies. END
 TITLE: An Essential Guide to How Credit Works CONTENT: It's Never too Late to Work on Your Credit\n------------------------------------------\nThe best time to start working on building your credit is now. Regardless of how many negative items you have on your credit report, their impact can diminish over time as you add new, positive information. And while it may take time to get to where you want to be, improving your credit score could save you thousands of dollars on future credit opportunities. END
 TITLE: What Is an Unsubsidized Student Loan? CONTENT: What Is the Difference Between Subsidized and Unsubsidized Loans?\n-----------------------------------------------------------------\nFederal student loans, unlike private loans, are either subsidized or unsubsidized by the federal government. So what's the difference?\nSubsidized loans are available to undergraduate students only, and the government reserves them for students who demonstrate financial need. The U.S. Department of Education offers the best terms on these loans, paying the interest while you're attending school at least half time, during the six-month grace period after leaving school, and during any loan deferment periods.\nUnsubsidized loans, on the other hand, can be obtained by both undergraduate and graduate students and don't require demonstration of financial need. Interest accrues on unsubsidized loans while you are attending school, during the grace period and during deferment. If you do not pay the accrued interest before you must start paying back the loan, that interest gets added to the loan's total. END
 TITLE: What Is an Unsubsidized Student Loan? CONTENT: Pros and Cons of Unsubsidized Loans\n-----------------------------------\nUnsubsidized loans have several benefits and drawbacks to consider before you take one on.\nUnsubsidized student loan perks include:\n*   You aren't required to demonstrate financial need. This can be helpful in many situations, such as when you've reached your borrowing limit on need-based subsidized loans and still don't have enough to fully cover school costs.\n*   Unlike subsidized loans, you can utilize these loans if you're a graduate or professional student.\n*   You can borrow more money than with a subsidized loan.\n*   Unlike private loans, you can choose from multiple federal repayment plans, giving you more flexibility.\n*   Additionally, while private loans require credit checks, unsubsidized federal loans (and subsidized federal loans) don't check credit.\nBut there are some downsides to consider:\n*   Interest starts accruing immediately. If you or your parents can't make interest payments while you're in school, that accrued interest is added to your loan's principal, which increases the cost of borrowing. For that reason, you should try to pay all the interest on these loans before you leave school.\n*   There are annual limits on how much you can borrow through federal loans—both subsidized and unsubsidized—so you may not be able to borrow as much as you need. In this case, you may be able to supplement with private loans. END
 TITLE: What Is an Unsubsidized Student Loan? CONTENT: How Much Can I Borrow With an Unsubsidized Loan?\n------------------------------------------------\nThe amount you can borrow with an unsubsidized student loan is determined by your school and is based on your year in school and dependency status.\nThe following chart shows the annual and aggregate limits for unsubsidized loans as determined by the federal government. END
 TITLE: What Is an Unsubsidized Student Loan? CONTENT: How to Apply For an Unsubsidized Student Loan\n---------------------------------------------\nFirst, make sure you meet the following criteria to qualify for an unsubsidized student loan. You must:\n*   Be a U.S. citizen or national, or a permanent resident\n*   Be enrolled on at a least half-time basis at an accredited institution\n*   Have no loan defaults or owe a refund to any previous student loan or aid\n*   Stay in good academic standing\nHere's how to apply:\n1.  Fill out the Free Application for Federal Student Aid (FAFSA). The government and colleges use this form to determine financial aid packages. Make sure you submit it by the annual deadline.\n2.  Go over your financial aid letter. You will receive a financial aid award letter from your school's financial aid office listing the loan options you qualify for and explaining how to accept them. You may be approved for both subsidized and unsubsidized loans; you can then determine how much of the approved amount you will request (you do not have to take the entire amount you are offered if you don't need it).\n3.  Complete the paperwork and requirements to receive your loan. This entails signing a promissory note (the loan agreement). If it's your first time receiving a federal loan, you'll have to complete online entrance counseling to make sure you understand your responsibilities and obligations as a borrower.\n4.  Receive your loan(s). When your loans come in, your school will put them toward your tuition, room and board (if you live on campus), or any other school fees. If there's any remaining money, it will be given to you. END
 TITLE: What Is an Unsubsidized Student Loan? CONTENT: Are There Fees for an Unsubsidized Loan?\n----------------------------------------\nYes, unsubsidized loans come with a percentage-based loan fee that's deducted proportionately from each loan disbursement you receive. The fee rate depends on when you took out the loan: If it was first paid out on or after Oct. 1, 2019, and before Oct. 1, 2020, the loan fee is 1.059%. If the loan was first disbursed on or after Oct. 1, 2018, and before Oct. 1, 2019, the fee is 1.062%.\nYou'll also pay interest in exchange for the benefit of borrowing. For undergraduate unsubsidized loans, the current interest rate is 4.53%, and for graduate, 6.08%. (These rates are for loans disbursed on or after July 1, 2019, and before July 1, 2020.) Fortunately, these interest rates are fixed and stay the same for the life of the loan. END
 TITLE: What Is an Unsubsidized Student Loan? CONTENT: When to Start Paying Off Unsubsidized Loans\n-------------------------------------------\nOnce you graduate from school, or you drop below half-time enrollment, you'll get a six-month grace period before you're required to start repaying your unsubsidized loan. During that time, your loan servicer will provide information on repayment and will let you know when you need to begin making your payments.\nFederal student loans allow you to choose from a few different repayment plans; you might be assigned to one automatically, but you can change your plan anytime for free. If you're not sure which plan would work best for you, ask your loan servicer to talk you through the options.\nRegardless of which plan you pick, it's vital to start paying off your student loans as soon as possible. Even if you're not required to pay during a grace period, interest still racks up, so try to at least make payments to cover interest to prevent your debt from growing higher.\nWhenever you can, pay more than the minimum you owe each month. This will lower your balance faster over time. If you overpay, the loan servicer may apply it to the next month's payment, so you may need to explicitly ask them to apply it to the current month's payment.\nLastly, if you have multiple student loans, make note of the ones with the highest balance and the steepest interest rate. If you're able to pay more than the minimum, put it toward those loans first since that will help you save more money over time. END
 TITLE: What Is an Unsubsidized Student Loan? CONTENT: Keep an Eye on Your Credit\n--------------------------\nStudent loans make a lasting impact on your credit, and the ramifications can be positive or negative depending on your actions. As you enter school, it's smart to monitor your credit—which you can do for free with Experian—to get a sense of where it stands and how your student loans affect your credit. Making every payment on time will help your credit grow and improve. END
 TITLE: Best Ways to Use Your Stimulus Payment CONTENT: Am I Eligible for the Stimulus Payment?\n---------------------------------------\nU.S. residents with a Social Security number who made less than $99,000 (single filing) or $198,000 (joint filing) in their most recent 2019 or 2018 tax filing are eligible to receive a stimulus payment. The only exception is for young adults who were claimed as a dependent on someone else's taxes; they will not be eligible to receive a payment. Those who receive Social Security are eligible to receive the full payment, as long as their gross income does not exceed the income limits.\nYou do not have to apply or fill out any forms to receive the payment as long as you've recently filed taxes. The IRS is encouraging those who don't typically file taxes, such as low-income earners and some seniors, to file a \"simple\" tax return in order to receive payment. If you receive Social Security, however, you do not need to file; the payment will be sent automatically. END
 TITLE: Best Ways to Use Your Stimulus Payment CONTENT: Will I Receive the Full Amount?\n-------------------------------\nThe amount you receive will be based on your income according to your 2018 or 2019 tax filings. If you've already filed your taxes for 2019, it will be based on your income reported there. If you haven't filed yet, it will be based on your 2018 return.\nAmericans who filed individually and had an adjusted gross income of up to $75,000 will receive the full $1,200. For individuals who made over $75,000, the amount they receive will be reduced by $50 dollars for every $1,000 over $75,000 they made up to $99,000.\nMarried joint filers who had an adjusted gross income of up to $150,000 could be eligible to receive $2,400. Reduced payments will be given to married couples who make between $150,000 and $198,000, after which couples won't get a payment. People who filed as \"head of household\" could receive $1,200 if they made $112,500 or less. Parents eligible for the payment will receive $500 extra for each qualifying child.\nTo calculate exactly how much you may receive in your stimulus payment, check out this online calculator. END
 TITLE: Best Ways to Use Your Stimulus Payment CONTENT: How Should I Use My Stimulus Payment?\n-------------------------------------\nFor many Americans, the stimulus payment will serve as a vital lifeline, helping them pay their mortgage or rent, or purchase food and other essential goods. For others, it will offer an opportunity to pay down debt or shore up their savings. Depending on your situation, one or more of these strategies could help improve your financial outlook.\n### 1\\. Take Care of Your Essential Needs\nFirst and foremost, it's important to use this money to take care of yourself and the people in your household, making sure that you maintain your health and keep a roof over your head. If you're experiencing financial hardship, consider using this money first to pay for essentials like housing, food, utilities and medicine. If you're still leaving the house for work, these essentials could also include things like gas, auto insurance and other related expenses that you need for everyday life.\n### 2\\. Make Debt Payments\nIf your essentials are covered, you can use this money to ensure you make all your debt payments, such as credit cards, auto loans and debts. Remember, making at least your minimum payment is better than missing a payment or making a late one. Many lenders are also offering relief measures right now to those affected by the coronavirus crisis, so even if you don't think you'll miss a payment, it might be helpful to contact them to find out if you have the option to conserve your cash for future essential expenses. Just be sure you know the terms of any possible relief measures your providers are offering.\n\"It's important to understand that, although you may not have to make payments, interest could still accrue when your account is in forbearance,\" says Rod Griffin, Experian's senior director of consumer education. \"If it does, you will have to repay that interest, which could cause you to pay more over time. However, that may be a worthwhile compromise to protect your credit through this difficult period.\"\nIf you don't think you'll be able to make a payment, let your lender know in advance, as they may be able to work with you on a solution.\n### 3\\. Save for Future Expenses\nIn this unprecedented and ever-evolving situation, having extra savings could come in handy should any unexpected expenses arise. If you have money left over after buying essentials and paying your bills, consider putting it into a savings account you can use to cover expenses in coming months.\n\"Times of crisis often create emotional voids that some people tend to fill with spending,\" according to Griffin. \"So, it's important to recognize if a purchase is a need that will get you through the next few weeks or months or a want that can be postponed for a later time.\" END
 TITLE: Best Ways to Use Your Stimulus Payment CONTENT: Resources That Can Help\n-----------------------\nFor more help with managing your finances during this difficult time, check out this list of financial and non-financial organizations that are offering assistance while the coronavirus situation continues. According to officials, stimulus payments should go out within the next three weeks and will be delivered via direct deposit or physical check. The payments will come from the IRS; more information and updates can be found on the coronavirus page on the IRS website.\nFor more information on the full law—which includes information on emergency small business loans, student loans and unemployment relief—visit this link on Congress's website. END
 TITLE: What Are Overdraft Fees and How Much Do They Cost? CONTENT: Overdraft fees may occur when a payment is authorized and there's not enough funds in your bank account to fully cover the transaction.\nInstead of declining the payment, your bank may hand over the money for the transaction and charge you a fee. If you have multiple overdrafts in one day, it's possible to get hit with multiple fees; however, there may be a limit to how many fees you can be charged per business day.\nTo rectify an overdraft situation, you'll have to add money to your bank account to cover the overdraft amount plus the fees your bank charged. Otherwise, the balance you owe will be subtracted from your next deposit. If you don't bring your balance above zero, the bank may close your account and transfer an unpaid balance to a collection agency.\nAnother form of overdraft protection that banks may offer is an automatic transfer from a linked account to cover a purchase if you don't have enough money in checking. For example, if you try to make a $200 purchase and there's only $150 in your checking account, the bank might pull money from savings or a credit card to ensure your account doesn't go into the red. This transfer service may also come with a fee, but it's often lower than the overdraft fee. END
 TITLE: What Are Overdraft Fees and How Much Do They Cost? CONTENT: How Much Do Overdraft Fees Cost?\n--------------------------------\nWhile fees can vary from one financial institution to the next, you can expect to pay around $35 per overdraft charge. Here's an overview of the overdraft fees for major financial institutions. END
 TITLE: What Are Overdraft Fees and How Much Do They Cost? CONTENT: Do Overdraft Fees Hurt Your Credit?\n-----------------------------------\nOverdraft fees don't directly affect your credit or credit score. That's because banking history isn't reported to the three credit bureaus—Experian, TransUnion or Equifax. However, if you don't pay a negative balance on your bank account and the account gets sent to a collection agency, the collection account could appear on your credit report and hurt your score.\nChecking account overdrafts _can_ show up on your [ChexSystems report](;text=Here's%20what%20you%20need%20to,it%20can%20affect%20your%20credit.), which is a report banks and credit unions use to assess your banking history. Financial institutions typically pull your ChexSystems report when deciding whether to approve you for a bank account.\nHaving negative records on this report, such as unsettled overdrafts, could make it harder to open a new bank account, which is why it's important to keep your account balances above zero.\nTo review your banking history, you can get one free [ChexSystems](!ut\/p\/z1\/04_Sj9CPykssy0xPLMnMz0vMAfIjo8ziDRxdHA1Ngg183AP83QwcXX39LIJDfYwM3M30wwkpiAJJ4wCOBkD9URAlMBP8PUKMgCa4-rgbG3kbugeaoCtAs8LAHKYAtyUFuREGmZ6OigAWLRKn\/dz\/d5\/L2dBISEvZ0FBIS9nQSEh\/) report each year. If you discover unpaid account balances, try to pay them off as soon as possible. Once you do, you can ask the financial institution to remove the record from your ChexSystems report. Ultimately, though, removal is up to their discretion. END
 TITLE: What Are Overdraft Fees and How Much Do They Cost? CONTENT: How to Avoid Overdraft Fees\n---------------------------\nOverdraft fees are expensive banking-related fees that you may be able to steer clear of by following these steps:\n*   **Cover the negative balance quickly.** Some banks give you a grace period during which time an overdraft fee isn't charged if you replace the balance within a business day.\n*   **Opt out of overdraft protection.** You could consider opting out of overdraft services. If you opt out, the bank may simply decline transactions when your account balance can't cover the charge instead of accepting the charge and adding a fee on top.\n*   **Link to a savings account or credit card.** Your financial institution may offer the option to automatically use another account to cover the charge if you don't have enough funds for a transaction. As mentioned, a fee may also be charged for this service, but it could be less than the overdraft fee.\n*   **Keep close tabs on your bank account balance.** Consider downloading a banking app to keep your balance at your fingertips around the clock. Your banking app may let you set up account alerts that give you a heads up when your balance is running low.\nIf you only rarely (or never) overdraw your bank account, the fees may not be a big consideration. If overdrafts are frequent, however, they can easily pile up and could put you in a difficult financial position. Not only that, your banking history and credit history could be affected when those balances go unpaid.\nIf you're worried that an unpaid account balance in collections may be hurting your credit score, consider pulling your credit report to review your records. You can view your credit reports from all three credit bureaus at AnnualCreditReport.com. You can also create an Experian account to receive your Experian credit report for free along with FICO® Scores☉ based on Experian data. Going forward, reviewing your bank balance regularly could help protect your credit and minimize costly overdraft fees. END
 TITLE: How to Stop Impulse Spending Online CONTENT: Signs Online Spending Has Gotten out of Hand\n--------------------------------------------\nWhile some people may shop online when they're bored or looking for a new item of clothing, others use it as a way to cope with stress or emotions, according to Discover Magazine. This can turn into a compulsion or addiction and can lead to increased debt and other financial issues.\nHere are some signs online shopping may be out of control:\n*   You've lost track of how much you've spent online recently.\n*   Your credit card bill arrives and you can't afford to pay it off anytime soon.\n*   Your shopping is wrecking your monthly budget.\n*   You rarely use your purchases.\n*   You feel like you can't stop shopping or thinking about shopping.\n*   You feel guilty after shopping online and possibly even hide your purchases.\nEven if you're not worried about a potential online shopping addiction, making purchases that throw off your monthly budget and threaten to derail your financial goals is a cause for concern. Here's how you can cut back on your online spending. END
 TITLE: How to Stop Impulse Spending Online CONTENT: Ways to Limit Online Spending\n-----------------------------\nIf you've realized your impulse spending has become problematic, there are plenty of strategies to help you get back on track:\n*   **Track your spending****.** When you don't have a grasp on how much you're spending, it's easy to be in denial. Tracking your purchases, and creating a thorough budget, can help you come to terms with how much you're really spending.\n*   **Reduce your access to spending.** With features like Amazon's one-click buying and PayPal or internet browsers storing our card numbers, it's now dangerously easy to make purchases without having to pause and get out our wallets. You could try removing your stored cards from your browser, PayPal and other shopping websites you frequent to add a barrier to the process. If you're forced to get up and get your card to make a purchase, that extra step and pause could help you realize you don't need it. If you tend to shop on certain apps, consider deleting those from your phone, or using apps that block your access to them at certain times.\n*   **Practice mindfulness.** Add a mindful moment before you buy something to check in with yourself: Think about whether you really need this item, and if there are emotions hidden underneath your urge to spend. Just forcing yourself to pause, whether by checking in with a loved one or giving yourself a 24-hour cooling off period to think it over, can help you decide whether the purchase is really necessary.\n*   **Work with a financial planner.** One solution could be to hire a financial planner, who can help you get on a budget and determine how much you can actually afford to spend on shopping. If you have a problem with debt, they can develop a plan to tackle it and create a financial strategy to help you reach your goals. Working with a professional can also help add a sense of accountability.\n*   **Address addictive shopping.** If you truly feel a compulsion to shop and are having trouble stopping on your own, Psychology Today recommends hiring a mental health professional who provides cognitive behavioral therapy. Discover Magazine notes group cognitive behavioral therapy or guided self-help can also be effective to help you work through the issue. END
 TITLE: How to Stop Impulse Spending Online CONTENT: Stay Safe When You Shop\n-----------------------\nAside from the budget-busting and emotional issues you could be facing, anytime you give out your card information online, you're putting your finances and identity at risk. According to the Federal Trade Commission, social media sites and search engines do not effectively filter out fraudsters and counterfeiters, recently resulting in a record number of complaints to the agency about fraud originating from social media.\nBefore you buy, especially if it's from an online ad for a website you haven't heard of, research the website and look them up with the Better Business Bureau. Keep in mind that shopping online comes with other risks, such as identity thieves capturing your credit card information if you shop on a public Wi-Fi network. Brush up on tips for protecting your identity when shopping online, and consider monitoring your credit to ensure you're aware of any unauthorized activity quickly. END
 TITLE: Do You Have to Be a Student to Get a Student Credit Card? CONTENT: How Student Credit Cards Are Different\n--------------------------------------\nStudent credit cards are different from regular credit cards in several ways. Since students often have little to no credit history and are considered higher credit risks, student credit cards usually have higher interest rates than the average credit card. Students also tend to have lower incomes than working adults, which means student credit cards also have relatively low credit limits. (Some cards will increase your credit limit after you make a certain number of payments on time.)\nMany student credit cards also offer perks designed to appeal to students. In addition to standard rewards such as cash back, some student cards offer an annual credit to cardholders who maintain a certain GPA. Students with better grades tend to be more conscientious, which can translate into better financial habits. Other perks may include one-time late payment forgiveness, free credit score monitoring or financial education tools. END
 TITLE: Do You Have to Be a Student to Get a Student Credit Card? CONTENT: Qualifying for a Student Credit Card\n------------------------------------\nIn order to qualify for a student credit card, you must:\n*   Be a U.S. citizen or resident with a Social Security number.\n*   Be 18 or older.\n*   If under 21, you must show that you earn sufficient income (such as from a part-time job) to meet the card issuer's requirements.\n*   Prove that you're enrolled in school. Each card issuer has its own definition of what this means. For example, Discover requires you to be enrolled in a \"two- or four-year college or university\"; State Farm requires you to attend a \"postsecondary educational institution.\" The Journey® Student Credit Card From Capital One® doesn't require proof of college enrollment—you just have to meet the credit and income requirements.\n*   Have a good credit score. Making payments on student loans and other credit accounts on time can help you build a credit history even before you get a credit card. If you're not sure what your credit score is, you can get a free credit score from Experian to check it. END
 TITLE: Do You Have to Be a Student to Get a Student Credit Card? CONTENT: Alternatives to Student Credit Cards\n------------------------------------\nIf you can't qualify for a student credit card on your own, don't give up. Try these alternative ways to get a credit card and start building a credit history.\n*   **Get a cosigner.** Some credit card companies allow a parent or other responsible relative with good credit to cosign on the account with you. The cosigner takes responsibility for making payments on the card if you can't.\n*   **Become an authorized user on a family member's credit card.** Ask a parent or other relative with a good credit score to add you to their credit card account as an authorized user. The primary cardholder remains responsible for the payments, but you can use the card (if they allow it). The primary cardholder's payment history gets reported to credit bureaus; since your name is also on the account, you build a credit history too, even if you don't use the card.\n*   **Get a secured credit card.** To get a secured credit card, you put down a deposit—usually between $200 and $2,000—which becomes your credit limit. (Essentially, you're pre-paying the card.) By making it impossible to spend beyond your credit limit, a secured credit card can be a good way to show you can use credit responsibly. Some secured credit card issuers will even offer you an unsecured card after you've made a certain amount of payments on time.\n*   **Get a store credit card.** Many retailers offer store credit cards, which often have less stringent approval requirements than regular credit cards. However, because these cards typically have high interest rates, this should be your last option. If you do get a store credit card, be sure to make only small purchases and pay off your balance in full and on time every month. END
 TITLE: Do You Have to Be a Student to Get a Student Credit Card? CONTENT: Student Credit Cards Build Credit History\n-----------------------------------------\nA student credit card can be a smart way for a college student to build a credit history and a strong credit score before entering the world of adulthood, rent and car payments. Just make sure you choose the right credit card for your needs, keep your payments manageable, and always pay your bill on time. END
 TITLE: Is It Possible to Pay Credit Cards With a Student Loan? CONTENT: Check Your Student Loan Agreement\n---------------------------------\nAccording to the U.S. Department of Education, federal student loan funds must be used to pay educational expenses. These costs include:\n*   Tuition and fees\n*   Room and board\n*   Textbooks\n*   Computers and other supplies and equipment\n*   Transportation to and from school\n*   Child care expenses\nIf you use a credit card to pay any of those expenses, you could use your student loan money to pay off the purchases. But if you're applying student loan money to your credit card balance as a general payment, you'll most likely end up paying for other, non-qualified expenses.\nWith private student loans, the terms for how you can use your money can vary from lender to lender. You'll want to check your loan agreement for details before using private loan funds to pay for other expenses. In general, though, you can expect the list of expenses that private lenders allow to be similar to what the federal government provides. END
 TITLE: Is It Possible to Pay Credit Cards With a Student Loan? CONTENT: Bankruptcy Is Unlikely to Wipe Out Student Loans\n------------------------------------------------\nAnother reason to avoid using your student loans to pay off credit card debt is that it can be difficult to have student loan debt discharged by bankruptcy. It's possible, but you'll have to prove to a court that the student loans are causing you significant financial difficulty, which can be a tough hurdle to clear even if your student loan payments are costly.\nCredit card debt, on the other hand, is a dischargeable debt in bankruptcy. So even if you don't anticipate having issues with paying your debts in the future, it's a good idea to avoid putting yourself in a position you may regret later.\nKeep in mind, however, that you should only ever consider filing bankruptcy as a last-resort course of action after you've exhausted all debt repayment strategies, payment accommodations and forgiveness options. END
 TITLE: Is It Possible to Pay Credit Cards With a Student Loan? CONTENT: It Could Put More Pressure on Your Budget Later\n-----------------------------------------------\nOne of the reasons you may be tempted to use student loan money to pay off credit card debt is that you may have the option to defer your student loan payments until after you're done with school. Student loans also typically carry lower interest rates than credit cards.\nBut if you add your credit card debt on top of the debt you're incurring for school, it could make your student loan payments unaffordable after you graduate, putting you in a difficult position. There are some options to lower your student loan payment, but most of them include paying more interest over time. END
 TITLE: Is It Possible to Pay Credit Cards With a Student Loan? CONTENT: How to Pay Off Credit Card Debt Without Using Your Student Loans\n----------------------------------------------------------------\nIf you're struggling with credit card debt as a college student, here are some ways you can approach the debt without using your student loan money.\n*   **Stop using your cards.** Paying off debt is made more challenging if you're continuing to add more to the balance every month—it can feel like you're taking two steps forward and one step back. To ease things along, put a hold on using your credit cards until you can get a handle on the balance. Think about creating a budget to help make sure all your expenses can be covered without the need for debt.\n*   **Increase your income.** Making money as a college student can be challenging. But taking on a part-time job or starting a side hustle as a tutor or freelancer can free up money in your budget you can put toward your credit card debt.\n*   **Pay off high-interest cards first.** If you have multiple credit cards, there are a few different approaches you can take with paying them off. If your goal is to save the most money over time, prioritize paying off the balances with the highest interest rates first. To accelerate the process, use the debt avalanche method to make just the minimum payment on all of your cards except for the one with the highest rate. Apply all your extra payments to that card until it's paid in full. Then take what you were paying toward that card and apply it to the one with the next-highest rate, and so on until all of your cards are paid in full.\nPaying off credit card debt may not happen overnight. But as you're proactive about decreasing your spending, increasing your income and prioritizing high-cost balances, you'll be able to speed up the process and save money on interest charges while you're at it.\nMonitor Your Credit as You Pay Down Debt\n----------------------------------------\nYour credit score is an important indicator of your overall credit health, and building a good or excellent credit score can help you qualify for better credit cards and loans with lower interest rates in the future.\nAs you pay down your credit card debt, it's crucial to avoid missing any payments. If you're late on a bill by 30 days or more, the card issuer will typically report it to the credit bureaus, and your credit score may drop significantly.\nIn addition to paying on time every month, make sure to monitor your credit to understand how your actions are affecting your score, and whether there are other areas you can address to improve it.\nWith Experian's free credit monitoring tool, you'll get free access to your Experian credit report and your FICO® Score☉ powered by Experian data. You'll also get real-time updates about certain changes to your report, including new inquiries, new accounts and changes to your personal information.\nAs you work to pay down debt and continue to practice good credit habits, you'll be able to build your credit history and put yourself in a better position to get affordable financing in the future when you need it. END
 TITLE: Is It Possible to Pay Credit Cards With a Student Loan? CONTENT: Monitor Your Credit as You Pay Down Debt\n----------------------------------------\nYour credit score is an important indicator of your overall credit health, and building a good or excellent credit score can help you qualify for better credit cards and loans with lower interest rates in the future.\nAs you pay down your credit card debt, it's crucial to avoid missing any payments. If you're late on a bill by 30 days or more, the card issuer will typically report it to the credit bureaus, and your credit score may drop significantly.\nIn addition to paying on time every month, make sure to monitor your credit to understand how your actions are affecting your score, and whether there are other areas you can address to improve it.\nWith Experian's free credit monitoring tool, you'll get free access to your Experian credit report and your FICO® Score☉ powered by Experian data. You'll also get real-time updates about certain changes to your report, including new inquiries, new accounts and changes to your personal information.\nAs you work to pay down debt and continue to practice good credit habits, you'll be able to build your credit history and put yourself in a better position to get affordable financing in the future when you need it. END
 TITLE: Should College Students Get Credit Cards? CONTENT: How College Students Can Benefit From Having Credit Cards\n---------------------------------------------------------\nThink of your first credit card as training wheels for your adult financial life. If you can handle one credit card with a low credit limit responsibly now—while your parents may still be willing to help you out of any jams—you'll be better prepared to manage rent, utilities and car payments once you graduate. Here are some other benefits of getting a credit card in college:\n*   **You'll build a credit history.** If, like most students, you have few or no credit accounts, you have what is called a \"thin\" credit file. This means credit bureaus don't have enough information about your use of credit to assign you a credit score. The earlier you get a credit card, the earlier you can start to build your credit history.\n*   **You'll learn the basics of credit management and score tracking.** Paying your credit card balance in full and on time every month will help improve your credit score. You should also check your credit report regularly to monitor your credit score and spot any mistakes or warning signs that someone is fraudulently using your credit.\n*   **You'll be prepared for financial crises.** If an expensive emergency such as an unexpected medical bill or car breakdown strikes, you may not have enough cash in your bank account to cover the cost. Having an emergency credit card in your wallet can give you and your parents peace of mind, especially if you attend college far from home.\n*   **You can earn rewards.** Some student credit cards offer rewards such as airline miles, cash back on purchases or credits for maintaining a certain GPA. They aren't as extensive as the rewards regular credit cards offer, but even a $20 credit can be a windfall for a college student on a tight budget.\nDo you feel confident you know how to manage money responsibly? Maybe you've been stuffing your piggy bank since you opened a lemonade stand in first grade, or paid cash for your first car at 16. If you're a financial whiz, you may even want to get more than one credit card. As long as you make your payments on time, having multiple credit cards can help you build your credit history and improve your credit score. Learn more about how many credit cards a college student should have. END
 TITLE: Should College Students Get Credit Cards? CONTENT: Signs Students Should Hold Off on Getting a Credit Card\n-------------------------------------------------------\nOf course, some people just aren't ready for the responsibility of a credit card in college. Do you have (or have you ever had) a job? Are you the one always treating your friends to lunch? Does your phone buzz nonstop with alerts from your bank that your checking account balance is in the single digits? Do you wish your school offered a major in shopping?\nIf managing money is an ongoing challenge for you, getting a credit card in college probably isn't a good idea. Credit cards can tempt you to spend more than you can afford. If your credit card balance climbs too high, it could damage the very credit score you're trying to establish.\nIf you aren't yet ready for a credit card, start by opening a checking and savings account, putting money into savings on a regular basis, and using your debit card responsibly. END
 TITLE: Should College Students Get Credit Cards? CONTENT: How to Get a Credit Card as a Student\n-------------------------------------\nIf you're sure you're ready to handle a credit card, where do you start? As a student with little or no credit history, here are the best ways to get your first credit card:\n*   **Get a secured credit card**: Secured credit cards can be useful tools to help college students build a credit history. They function like any other credit card, with one important difference: You have to make a security deposit when you apply. This amount typically ranges from $200 to $2,000 and typically serves as your credit limit. By making regular monthly payments, you build a credit history, and as your credit score improves, you may qualify for a regular credit card from the same issuer. When you apply for a secured card, ask the issuer if they report to the credit bureaus—not all do.\n*   **Get a student credit card**: If you have your own income, even from a part-time job, you may qualify for a student credit card. Designed for college students, these cards usually have lower credit limits than traditional credit cards, and often have less stringent income requirements too. In addition to demonstrating income, you'll need to be 18 or over, prove that you're enrolled in college and pass a credit check to get a student credit card.\n*   **Become an authorized user on someone else's card**: A parent or other family member can add you as an authorized user on one of their credit cards. (Check with the credit card issuer first to make sure that payment history will be reported on your credit report as well as the primary cardholder's; otherwise, it won't help build your credit history.) You'll get your own card, be able to make purchases and benefit from the primary cardholder's good credit habits. The primary cardholder is ultimately responsible for the payments. To stay in their good graces, agree on a limit to how much you can charge and how you'll pay your share of the bill each month.\nBefore applying for any credit card, get a free credit report so you can make sure there are no mistakes or problems. With your first credit card in hand, you'll be on the road to a bright financial future. END
 TITLE: How Is a Student Credit Card Different From a Regular Credit Card? CONTENT: A student credit card can be a worthwhile first credit card, helping you build credit from scratch. As you make purchases and pay them off on time each month, you'll show lenders you can be trusted to borrow money in the future.\nOver time, your goal should be to attain good credit scores, which, on the FICO 850-point scale, is around 700 or higher. Good credit is valuable when you're ready to get a car loan, for instance, since the better your credit, the more likely you are to get lower interest rates. Even landlords may require a credit check to assess your trustworthiness as a tenant.\nAs you build credit with a student credit card, you'll have the added benefit of rewards like cash back, free credit score monitoring or incentives to maintain good grades. That can mean earning money for the purchases you make and establishing strong financial habits at the same time. END
 TITLE: How Is a Student Credit Card Different From a Regular Credit Card? CONTENT: How a Student Credit Card Is Different From Other Cards\n-------------------------------------------------------\nYou'll typically have access to a traditional credit card once you've built enough credit history to show you can manage a higher credit limit. A student card can help you get there. Here are the main differences between a student credit card and a regular credit card.\n### Student Credit Cards\n*   **Usually have a lower credit limit**: Since students are new to credit, card issuers aren't yet sure you can be depended on to pay back big balances. As a result, a student card may have a lower credit limit than a regular card. You often can get access to a higher credit limit once you've made several on-time payments, though, depending on the card.\n*   **Are generally unsecured**: There are two types of regular credit cards: secured and unsecured. A secured credit card, generally an option for those with little or no credit, requires a minimal deposit, which becomes your credit limit. Student credit cards are unsecured, meaning they don't require a deposit.\n*   **May offer limited rewards**: Student credit cards sometimes give cardholders a range of rewards, like cash back on purchases in certain categories. Some regular credit cards, however, offer more extravagant reward options, like sign-up bonuses, airline miles and access to luxury airport lounges when traveling.\n*   **May provide special benefits for students**: On the other hand, a student credit card is more likely to have enticing perks for those in college. Certain Discover student cards, for instance, offer an annual $20 statement credit to cardholders who show they have a GPA of 3.0 or higher.\n### Regular Credit Cards\n*   **Have comparatively higher credit limits**: Once you qualify for a regular credit card, you'll generally have access to a higher credit line, which means more available credit. But make sure to use no more than 30% of your total credit limit at any time, as experts recommend; otherwise, you'll have a high credit utilization rate, negatively affecting your credit scores.\n*   **Can be secured or unsecured**: Regular credit cards offer more alternatives to those with little or no credit than student cards do. While it's typically harder to get an unsecured card, a secured card can help someone who doesn't have income or a cosigner build or restore credit.\n*   **Generally require better credit for better offers**: Regular credit cards with the most valuable rewards also require higher scores and more established credit history. To get a rewards credit card, you'll usually need a score of at least 670. Student credit cards, however, are designed to provide a way for those new to credit to build a profile.\n*   **Come in multiple types**: There are regular credit cards for all kinds of purposes. Rewards cards can offer cash back or points for travel; balance transfer cards are available to those who already have a credit card balance and want to pay it off over time, interest-free. END
 TITLE: How Is a Student Credit Card Different From a Regular Credit Card? CONTENT: When Should a Student Get a Credit Card?\n----------------------------------------\nYou can apply for a credit card as the primary account holder once you turn 18. A student credit card is worth considering if you earn your own income or choose a card company that allows cosigners (and a parent or another dependable person in your life is willing to help). Your cosigner should know, though, that he or she will be on the hook for any debt you can't repay.\nIt's also important to know yourself, and whether you're ready for the responsibility that holding a credit card brings. If you're not sure you can avoid maxing out the card or missing payments, it's smart to go for a different credit-building option instead. Then apply for a regular credit card later on. END
 TITLE: How Is a Student Credit Card Different From a Regular Credit Card? CONTENT: Alternatives to a Student Credit Card\n-------------------------------------\nIf you can't qualify for a student credit card or you're not sure it's right for you, try one of these alternatives:\n*   **Become an authorized user**: If a parent, guardian or older sibling has pristine financial history, consider asking to join their credit card account as an authorized user. You won't be held responsible for making payments, but you can use the card (if the primary cardholder agrees). As long as the card issuer reports authorized user activity to the credit bureaus, on-time payment history on the account can help your credit.\n*   **Get a secured credit card**: With its low credit limit, a secured credit card is a smart first credit card if you don't meet a student card's income or cosigner requirements. The deposit generally falls between $200 and $2,000. Once you've shown you can use your secured card responsibly, some issuers will automatically qualify you for an unsecured card.\n*   **Apply for a retail credit card**: Credit cards issued by stores may not have the same stringent requirements as other unsecured cards. But they often come with high interest rates, which makes it particularly important to pay off the balance each month to avoid interest charges. In general, look into other credit card options before going this route.\nStudent credit cards can help you jump-start your credit history—while giving you benefits that can make campus life easier, or cheaper, in the meantime. Use a student card wisely, and a regular credit card could be on the horizon. END
 TITLE: Your Guide to Getting a Student Credit Card CONTENT: Getting—and properly using—a student credit card is one of the best ways to build credit.\nYou'll need good credit to get the lowest interest rates on loans in the future, and to qualify for premium credit cards that come with attractive travel and cash back rewards.\nAs a college student, you may have little or no credit history, which, paradoxically, makes it hard to qualify for additional financial products that can help you develop a credit file. But student credit cards are helpful first credit cards particularly for this reason. They generally have lower credit limits than traditional cards, which means their income requirements may be less stringent.\nTo use a student card responsibly, pay your bill on time, use as little of your credit limit as possible and pay off the balance each month. These habits will contribute to a good credit score, and could help you graduate to a traditional credit card later on. END
 TITLE: Your Guide to Getting a Student Credit Card CONTENT: How Do I Qualify?\n-----------------\nTo be eligible for a student credit card, you'll generally have to meet the following requirements:\n*   **Be at least 18 years old**: When applying for a credit card in your own name, issuers typically require you to be 18 or over. Also, as a result of the Credit Card Accountability Responsibility and Disclosure Act of 2009—known as the Credit CARD Act—if you're under 21, you must show that you earn independent income. Otherwise, you must use a cosigner who is older than 21, or opt for a different credit-building strategy.\n*   **Be currently enrolled in college—usually**: Most student cards require applicants to prove they're currently enrolled in school. Credit card issuers define this differently: Discover requires students be enrolled in a \"two- or four-year college or university,\" while State Farm says you must attend a \"postsecondary educational institution.\" The Journey Student Rewards from Capital One, however, does not include college enrollment as a requirement. It's available to anyone, student or not, who meets the credit and income requirements.\n*   **Pass a credit check**: Credit card issuers will look at your credit report, which shows any accounts you have open, such as student loans, and your payment history on those accounts. If you have poor or no credit and don't qualify, you can look into alternatives to student credit cards, like becoming an authorized user on a parent's card. More on that below.\n*   **Earn income**: Anyone under 21 applying without a cosigner must show they have sufficient income to pay their credit card bill. To qualify for the Journey Student Rewards from Capital One, for instance, your monthly income must be at least $425 more than your monthly housing payment. That income can include money that a parent or other source of support deposits into a shared bank account for you to use.\n*   **Be a U.S. citizen**: You'll generally have to provide a current permanent home address located in the U.S. to apply. END
 TITLE: Your Guide to Getting a Student Credit Card CONTENT: Which Credit Card Is Best for Students?\n---------------------------------------\nThe best credit card for you depends on your spending habits, financial goals and ability to qualify. But when choosing among student credit card options, check annual fees, rewards programs—including how to earn and redeem those rewards—and their interest rate ranges. Ideally, you'll pay off your credit card bill in full each month, which is one of the top ways students can build credit. But understand how much it will cost if you carry a balance.\nAlso, consider your lifestyle when deciding on a card:\n*   Eager to build credit? The Journey Student Rewards from Capital One considers you for a higher credit limit in as little as six months. Keep your balances low and pay off all purchases each month, and that additional available credit could help you build a stronger credit score. END
 TITLE: Your Guide to Getting a Student Credit Card CONTENT: How Do I Apply?\n---------------\nThe most important step in applying for a credit card comes before you fill out any forms. Make sure you're applying for the best card for your situation, and that you meet as many of the requirements as possible. That will give you the best shot at approval.\nOnce you've chosen a card, the easiest way to apply is on the card issuer's website. Collect the information you'll likely need for the application, like your Social Security number, contact information, annual income—including any types of income the card issuer has particularly noted may count, like bank deposits in a shared account—and monthly housing payment. You may be approved immediately or have to wait for a decision by mail. END
 TITLE: Your Guide to Getting a Student Credit Card CONTENT: What if I Get Denied?\n---------------------\nIf your application for a student credit card was denied, a likely reason is that you don't have sufficient credit history. You can find out for sure, though, by asking the issuer for an adverse action letter, which explains why the company declined to extend you credit.\nNext, take a look at your credit report and make sure there aren't any inaccuracies, like accounts opened in your name that you didn't apply for. Also, if anything changed since you applied for the card—you took on a new, higher-paying job, for instance—you can request the issuer reevaluate the application. Avoid applying for multiple cards that you're unlikely to qualify for, since lots of hard credit inquiries, which occur when you apply for credit cards, can hurt your score.\nIf getting a student credit card isn't possible for you right now, consider a secured credit card instead, which requires a cash deposit that becomes your credit limit. It's designed to help those new to credit build their file. Use it responsibly, and the issuer could upgrade you to a traditional card eventually.\nAn additional option is to ask a parent or another financially responsible person in your life to add you as an authorized user to their credit card. You won't be responsible for payment, but the length of their credit history and experience making on-time payments could help build your credit. Make sure the credit card company reports authorized user activity to the credit bureaus. END
 TITLE: Your Guide to Getting a Student Credit Card CONTENT: The Bottom Line\n---------------\nStudent credit cards aren't the only credit-building options if you're in college, but their benefits make them a good bet if you qualify. Explore your options before applying, especially by scrutinizing your credit report and choosing a card that fits your credit profile. With the right card, you could lay a foundation for good credit habits early, and enjoy some rewards along the way. END
 TITLE: Can I Break a Lease Early? CONTENT: Legally Justifiable Reasons for Breaking a Lease Early\n------------------------------------------------------\nThough a lease is a **legal document**, you may be able to break it without facing penalties. However, it still isn't something you should do lightly, or without fully understanding the drawbacks—it's often wise to **consult a lawyer** or get help from local experts. Depending on the state you live in, you may be able to turn in your keys **before the lease expires** with few (if any) ramifications for the following reasons: END
 TITLE: Can I Break a Lease Early? CONTENT: What Happens if I Break a Lease Early?\n--------------------------------------\nIf you break your lease for a reason that isn't legally protected, the consequences can be severe. Be prepared for potential fallout if you're reneging on your lease agreement. Ramifications include: END
 TITLE: Can I Break a Lease Early? CONTENT: What Does Breaking a Lease Do to Your Credit?\n---------------------------------------------\nMost landlords do **not report rent payments** to the credit reporting bureaus because rent is not a debt or a type of credit. If that's the case for you, breaking a lease won't automatically affect your credit report.\nHowever, if the landlord does **turn over a balance** due to a debt collection agency, that company can—and usually will—**send the account to the credit reporting bureaus**. When this happens, the balance owed will end up on your **consumer credit reports** and negatively affect your scores. It will remain there for up to seven years, and anyone who views your reports will see the derogatory account.\nA **collection account** is a clear indication that you did not fulfill your end of a financial bargain, so it will be **factored into your credit scores** too. Because payment history is the most important credit scoring factor, your credit scores could decline when the debt collection account appears.\nAdditionally, a **broken lease agreement** can appear on a document called a **tenant screening report**. This is separate from your credit report and contains an overview of your **tenancy history**. Landlords can furnish information to tenant screening reports, listing your payment pattern and any other relevant information for future renters to review. If you broke your lease without just cause, it can show up as a **major red flag**. When it does, you can have trouble securing a new place to live. END
 TITLE: Need Help Paying Rent? Here’s What to Do CONTENT: First, Contact Your Landlord\n----------------------------\nIt's best to reach out to your landlord or property manager right away to discuss your situation and possible solutions. The response can vary widely—some landlords have gone as far as temporarily canceling rent, while others may demand the rent on time and (if they're allowed to) charge fees and penalties, and proceed with an eviction if you're unable to pay.\nWhile you might not encounter either extreme, reaching out earlier can help you come to a mutually beneficial agreement with the person who manages your unit. Since many landlords would prefer to avoid having an empty unit and dealing with finding a new tenant, it's possible they'll offer a solution that keeps a roof over your head. For instance, a lower monthly payment for now and a payment plan for the unpaid amount might be a win-win. New local and state laws could open up new options, such as in New Jersey, where landlords can now put your security deposit toward rent.\nWhen talking out a deal, avoid agreeing to any add-on expenses, such as fees or interest, that could make paying the rest of the rent even more difficult in the future. In some places, it may even be illegal for landlords to try and tack on extra fees or penalties. END
 TITLE: Need Help Paying Rent? Here’s What to Do CONTENT: See if You Qualify for Financial Assistance\n-------------------------------------------\nEven if you're given the option to delay some of your payments for a few months, it may not be the ideal action to take. Some organizations may be able to help you meet your current rent obligation without involving a landlord. The National Low Income Housing Coalition can point you in the direction of a program in your area.\nAlternatively, getting help with other necessities, such as food, transportation or utilities, could help you free up money for rent. Both 211.org and FindHelp.org are useful starting points. Experian organized information on COVID-19 debt relief programs being offered by financial services companies, such as credit card issuers, lenders and insurance providers. END
 TITLE: Need Help Paying Rent? Here’s What to Do CONTENT: Learn About Tenants' Rights in Your Area\n----------------------------------------\nYour rights as a renter can vary widely depending on where you live. Complicating matters, pandemic responses from municipalities and states can be vastly different from one area to the next. The CDC's eviction protection is currently set to expire at the end of March—though it's possible it will be extended—but you may also be protected by statewide order, such as the one in California that extended the eviction moratorium there through June 30, 2021.\nFor a more detailed look at eviction protections, check out the following:\n*   NOLO's state-by-state overview of housing and utility protections.\n*   Just Shelter maintains a national database of organizations that can help with housing assistance, legal aid, tenant rights, education and advocacy.\n*   The Legal Service Corporation can help you find nonprofit legal aid organizations in your state that may be able to help you with legal assistance.\n*   The U.S. Department of Housing and Urban Development page, which links to tenant rights information in each state.\nRemember that even if you're covered by an eviction ban, that doesn't cancel your rent. You still owe the money, and the landlord may have the right to evict you when the moratorium ends. But again, check local laws as there may be specifics about how quickly you need to repay past-due rent.\nLaws aside, some landlords have also threatened to illegally evict tenants in areas where a ban is in place. Or, they may try to force you out by refusing to do repairs, locking you out or cutting off utilities. If this happens, look for legal assistance by contacting a local tenant lawyer or using one of the tools above to find a legal aid clinic. END
 TITLE: Need Help Paying Rent? Here’s What to Do CONTENT: Understand the Eviction Process\n-------------------------------\nIf you're unable to pay rent and aren't covered by an eviction ban, your landlord may begin the eviction process once you're behind on rent. However, that doesn't necessarily mean you have to leave the home right away.\nLegally, the landlord may need to give you a written notice and get a court order from a judge. Local and state laws can impact the process, which could take a couple of weeks to a few months—and you may have the right to stay in the home until the process is complete.\nIf you are evicted, landlords may be able to send your account to collections and sue you to get a judgment, allowing them to garnish your wages or bank account. An eviction can also become part of your rental history, making it difficult to rent again in the future. However, evictions aren't part of your credit history, and even judgments no longer appear in credit reports or impact credit scores. END
 TITLE: Need Help Paying Rent? Here’s What to Do CONTENT: Start Planning Now\n------------------\nEven if you can afford your rent for the next month—or a few months—start planning for the possibility that you could fall behind in the future. Perhaps you can move to a less expensive place, move in with someone or sublet a room. Reaching out and setting up these options now, rather than at the last minute, could make the transition easier. As a last resort, you could also look into taking out an emergency loan to pay for rent.\nAdditionally, pay attention to your local news. While federal programs will likely make the headlines and be hard to miss, there may be new local or state assistance available in the coming months. END
 TITLE: How to Get a Loan Against Your Tax Refund CONTENT: Where Can I Get a Tax Refund Loan?\n----------------------------------\nMany tax preparation companies—including H&R Block, Jackson Hewitt and Liberty Tax—let their customers borrow against an upcoming U.S. tax refund. While these companies have many brick-and-mortar locations, they also have an online presence, so you can apply for a loan in person or online.\nIf you prepare your own taxes, you don't have to go to a tax preparer to get a tax refund loan. Online tax filing services, including TurboTax and TaxAct, also offer refund loan options. END
 TITLE: How to Get a Loan Against Your Tax Refund CONTENT: How to Get an Advance on a Tax Refund\n-------------------------------------\nTax refund loans are appealing because they allow you to get a quick loan that's equivalent to the money you're owed from the government. Depending on the company you use, the loan can be ready for you within 24 hours of applying. That's a pretty big difference from having to wait the six to eight weeks it generally takes for the IRS to issue your tax refund check when you submit a paper return. If you file your taxes to the IRS electronically, it typically will take less than three weeks, and the process can be expedited if you opt for direct deposit rather than a mailed check. In any case, those weeks can crawl by when you need the funds to pay your bills.\nAs long as you expect a refund, you are eligible to apply for a loan. You may not be able to borrow the entire amount due, however, as most companies cap the loan below your full refund amount in case the predicted refund amount is inaccurate. Many companies also have established minimums and maximums. Jackson Hewitt refund loans, for example, start at $200 and go up to $3,200, while TurboTax offers advances of $250 to $2,000.\nIn the event that you or your tax preparer made a mistake on your tax forms, you could get less back than you anticipated. If you borrow more than your tax refund amount, you'll be responsible for repaying the debt your tax refund doesn't cover. Some tax preparers will absorb the difference between what you borrowed and what your actual refund is, but ask them about their policy first.\nOutside of filing errors, there are other potential reasons your tax refund may be lower than you or your tax preparer anticipates. For example, the IRS may deny certain deductions, causing you to owe more. If you're behind on child support payments or have a tax lien, the IRS will withhold some or all of your refund depending on how much you owe. END
 TITLE: How to Get a Loan Against Your Tax Refund CONTENT: How Much Does a Tax Refund Advance Cost?\n----------------------------------------\nThe majority of tax preparation companies offer tax advance refunds without charging you interest or adding fees to the amount you borrow. That doesn't mean they're free, since the cost is embedded in the price to use the service in the first place. For example, if you use H&R Block to file your taxes, you might pay more than the $59 the company typically charges.\nBeware of other fees that could be tacked on to the refund loan. For example, if your tax refund loan is issued to you via a prepaid debit card, there is usually a small cost associated with it.\nYou can escape any filing fees by completing your own taxes. The IRS provides free software that you can use if your income is below $69,000 and free fillable forms if it's above that income threshold. To avoid needing a refund loan altogether, plan to file your taxes earlier in the year to get your tax refund sooner. END
 TITLE: How to Get a Loan Against Your Tax Refund CONTENT: Can I Get a Tax Refund Advance With Bad Credit?\n-----------------------------------------------\nTo qualify for a tax refund loan, you typically don't need to have good credit scores. Because you are borrowing against money that's coming to you anyway, a tax refund loan doesn't pose the same type of risk to lenders that a traditional loan or line of credit does.\nStill, the lenders that some companies use will conduct a complete credit check first. If so, that will result in a hard inquiry being placed on your credit report, which will temporarily factor into your credit scores. But if they only do a soft inquiry (or don't check at all), your credit history and scores won't be affected. END
 TITLE: How to Get a Loan Against Your Tax Refund CONTENT: The Bottom Line\n---------------\nIf you need your tax refund money right away and already were planning to file through a tax preparer, there are few downsides to rushing the process with a tax refund loan. It could even benefit your credit if you use it to tackle existing debt. Check your free Experian credit report to see where your credit is and help you decide which debts you should tackle first.\nStill, be sure to run the numbers, including any extra fees, and only explore a tax refund loan if the benefits outweigh simply waiting for your tax refund to come through in full. If ultimately you find that a tax refund loan isn't an option after all, you may consider applying for a credit card with a promotional 0% annual percentage rate (APR) or a low interest personal loan. END
 TITLE: How to Qualify for a Section 8 Voucher CONTENT: How Do Section 8 Vouchers Work?\n-------------------------------\nThe Section 8 voucher program is run by local Public Housing Agencies (PHAs) and lets you pay just 30% to 40% of your gross monthly income for rent when living in a privately owned home. Basically, you pay your share, and the government steps in to pay the difference.\nIf you are approved, the PHA tells you what size home you can rent given your family size and composition. You can choose to live in any available single-family home, townhouse or apartment where the voucher is accepted as long as the home passes a quality and safety inspection. END
 TITLE: How to Qualify for a Section 8 Voucher CONTENT: Section 8 Eligibility Requirements\n----------------------------------\nPHAs look at your income, family composition, citizenship and eviction history to qualify you for a Section 8 housing voucher. Here's a bit more detail on the eligibility criteria: END
 TITLE: How to Qualify for a Section 8 Voucher CONTENT: If you believe you're eligible for Section 8, you can apply through your local PHA. The PHA can explain the documents you'll need to provide to show income, family size and citizenship.\nAfter getting a stamp of approval, you may be put on a waiting list depending on the number of applicants. If the list is long and the program funding is limited, it could take a while for you to get your housing voucher. However, some people on the list—such as people displaced, homeless or living in poor-quality housing—may get priority. END
 TITLE: How to Qualify for a Section 8 Voucher CONTENT: What to Do if You Don't Qualify for Section 8\n---------------------------------------------\nSuppose you don't qualify for a Section 8 housing voucher, or you're stuck on a waiting list. In that case, you may still be able to get housing help through other programs, especially if you're in an emergency situation and at risk of becoming homeless. Here are a few options to consider:\n*   **State and city housing agencies**: State and city housing agencies may run housing programs targeted to certain populations or people who meet requirements and need financial assistance. For example, New York's CityFHEPS program helps people pay rent and find homes. If you're financially affected by COVID-19, state-run programs may offer relief that could help you avoid eviction. In addition, many states have \"211\" programs for human services, which might provide ongoing housing and eviction prevention support.\n*   **Additional federal programs**: HUD may subsidize rent at specific apartment complexes. You can search for subsidized apartment rentals on the HUD website. Another alternative could be exploring public housing if you can't get a housing voucher.\n*   **Community housing programs**: Nonprofit and community organizations may provide housing opportunities to people in underserved communities. Housing counseling agencies approved by HUD may be able to help you explore these and other options. END
 TITLE: Will 2020 Stimulus Payments Affect Your Taxes? CONTENT: How Are the Stimulus Check and My Taxes Related?\n------------------------------------------------\nThe government agency in charge of making sure you get your stimulus check is the Internal Revenue Service, which also issues federal tax refunds and collects payments. Talk of the IRS may cause a feeling of dread, especially if you tend to owe money at tax time, but there's nothing to worry about here.\nThe stimulus money is not considered taxable income. The check will not increase the amount you owe when you file your 2020 federal tax return and will not decrease your refund for the 2020 tax year. The IRS and your tax filings are only involved because the government needs to verify your income to issue your stimulus payment.\nThe federal government uses your federal tax return for 2018 or 2019 to calculate the amount of your stimulus check. If you already filed your 2019 return, that information will be the foundation for your stimulus payment. If you haven't filed a 2019 return, the IRS will rely on information from your 2018 return to determine your stimulus amount.\nBut what if your income has changed dramatically in recent years, and you worry it may complicate matters? Here's how that works:\n*   If your income is lower in 2020 than it was 2018 or 2019, you could be eligible for a stimulus check based on your 2020 income. That payment would come after you file your federal return for the 2020 tax year.\n*   If your income goes up in 2020 compared with 2018 or 2019, you won't be forced to pay back the stimulus money and won't lose any of your 2019 or 2020 tax refund.\nAnd what if you haven't recently filed taxes at all? This is how distribution works:\n*   Social Security recipients, railroad retirees and military veterans who weren't required to file 2018 or 2019 federal tax returns automatically receive a $1,200 stimulus check.\n*   Americans who do not receive federal benefits and did not file 2018 or 2019 tax returns can qualify for stimulus checks by using the IRS tool for nonfilers, or by filing a 2019 return if you earn nontaxable income or do not make enough money to normally require submitting a tax return.\nStimulus payments are being made through the end of 2020. If you do not get a stimulus payment this year, you will be able to claim it when you file your 2020 tax return next year. END
 TITLE: Will 2020 Stimulus Payments Affect Your Taxes? CONTENT: Is the Stimulus Check Just an Advance on My Tax Refund or Government Benefits?\n------------------------------------------------------------------------------\nYour stimulus check is not an advance tax refund, and will not affect tax refunds based on your 2019 and 2020 tax returns. Additionally, you will not have to repay the stimulus money.\nThe stimulus payment is a new federal tax credit for the 2020 tax year, which is why you may have heard it referred to as a stimulus rebate. But unlike other rebates, such as the federal child tax credit or earned income tax credit, Americans are eligible now to receive payments instead of having to wait until tax time next year for a larger refund or a tax payment reduction.\nYour stimulus payment should also not affect the amount of money you get through federal benefits, such as Social Security, and your state-based unemployment benefits should be safe as well. Receiving unemployment benefits doesn't disqualify you from also receiving a stimulus check, nor will it reduce the benefit amount you'll receive from either source. Keep in mind that while the stimulus payment is not taxed, unemployment benefits are subject to federal income taxes and some state income taxes. END
 TITLE: Will 2020 Stimulus Payments Affect Your Taxes? CONTENT: Can My Stimulus Check Payment Be Seized?\n----------------------------------------\nFirst, the good news. If you owe money to the federal government in back taxes or defaulted student loan debt, your stimulus check should be safe from what's known as a federal offset or federal garnishment. In other words, you're typically able to keep your full stimulus payment in this case.\nHowever, the federal government can take all or part of your stimulus check if you're overdue on child support payments.\nYou also might lose that money if a court has ordered you to make certain types of payments, such as if a judge has demanded that you turn over money to a debt collector. The Indiana and Texas supreme courts have halted seizures by debt collectors, and some state officials have advised that debt collectors are prohibited from seizing stimulus checks. In April, attorneys general from 25 states called on the U.S. Treasury Department to ban debt collectors from seizing stimulus checks.\nFurthermore, your bank or credit union might seize your stimulus check, without a court order, if you owe money to them. For instance, your bank or credit union might take your stimulus money if you have an overdue auto loan, a delinquent personal loan or an overdrawn account.\nWhat can you do if your stimulus check has been seized? Options include:\n*   Working with the debt collector to pay the money you owe in hopes of preserving the stimulus money.\n*   Reaching out to your state's child support office about whether catching up on overdue child support could free up the stimulus money.\n*   Contacting your bank or credit union to see whether your debt can be resolved so you can keep your stimulus payment.\n*   Checking with your state attorney general's office or your state's consumer protection agency about your legal remedies.\n*   Seeking help from a nonprofit consumer advocacy organization like the National Consumer Law Center. END
 TITLE: Will 2020 Stimulus Payments Affect Your Taxes? CONTENT: Getting the Help You Need\n-------------------------\nFor anyone facing financial difficulties during the coronavirus pandemic, a stimulus check can help cover rent, groceries and other necessities—and can help ease a tough situation. Staying informed can help ensure you receive the stimulus money that you're entitled to. And if you believe you deserve a stimulus check but are running into trouble getting one, don't be shy about asking for help from a nonprofit consumer advocacy group or a nonprofit legal aid organization. We can all use a helping hand in times like these. END
 TITLE: How Is Passive Income Taxed? CONTENT: How Does Passive Income Work?\n-----------------------------\nPassive income is a way to earn money on autopilot. Most opportunities require an upfront investment of time, money or both.\nAccording to IRS Publication 925, there are two forms of passive activities:\n*   Business or trade activities that you don't materially participate in.\n*   Rental activities (even if you materially participate)—except for activities done to fulfill your duties as a real estate professional.\nCommon ways to earn passive income include investing in dividend stocks, exchange-traded funds, dividend index funds, bonds, bond index funds, rental properties and high-yield savings accounts. You can also invest in a peer-to-peer lending platform (and earn self-charged interest), real estate investment trust or become a silent partner in a business (without participating \"materially\").\nSome passive income methods don't cost much and are within reach of many people who have an income. These methods can help you build up your retirement savings, but their proceeds may not make much of an impact on your monthly income in the short term. Unfortunately, making passive income that's enough to quit your day job and live off of requires an initial investment that's out of reach of most people. END
 TITLE: How Is Passive Income Taxed? CONTENT: Is Passive Income Taxable?\n--------------------------\nJust like income from a full-time job, income earned from passive activities is taxable. If you sell your interest in a passive income activity or sell a property that generates passive income, you are also responsible for taxes on any earnings you make.\nThe amount you owe, though, will depend on several factors, including the type of passive income source and how much time you spent on the business. Income earned from rental properties is taxed differently from earnings from business or trade activities and cash back credit card rewards. There are many sources of passive income, and you may want to consult a professional to learn more about your specific tax situation.\nIt can also be a good idea to consult with an accounting professional _before_ you pursue passive income opportunities to make sure you fully understand the potential tax liability so you can be prepared come tax time. They can also provide more insights on recordkeeping and what documentation you may need when filing your return. END
 TITLE: How Is Passive Income Taxed? CONTENT: Ways to Earn Passive Income\n---------------------------\nIf you want to start earning passive income quickly without investing a ton of time or money, consider these opportunities:\n*   **Create an investment fund.** You can invest in stocks, bonds or both to earn passively. Before you consider this as a passive income method, however, make sure you take care of your emergency savings, retirement fund and minimal debt. If you're ready to start investing, you can use a robo-advisor, online brokerage or work with a financial advisor to open your investment account. Be mindful that returns aren't guaranteed with investment products, so you should only invest what you can afford to lose—a mistimed or unwise investment can easily wipe out your initial investment.\n*   **Sell unwanted items online.** Consider listing items you no longer want or need on online marketplaces. Some charge a small listing fee, and others let you post for free. You don't have to market the items as shoppers will come on and browse for what they want. The only action required on your part is packing and shipping (or delivering) the items once they sell.\n*   **Rent out a parking space or spare vehicle****.** Is there a high demand for parking spaces where you live? Consider renting out a space in your garage or driveway. Renting out your car when it's not in use through a mobile app, like Turo or Getaround, can earn you a few hundred dollars per month. They simplify the rental process by connecting you with potential renters. Before pursuing this opportunity, check with your insurance company first to ensure you won't be penalized or lose your coverage.\n*   **Download coupon or cash back apps.** Sites like Coupons.com and RetailMeNot can help you get coupons that save you big on groceries and household items. You can also use browser extensions from sites like Ibotta and Rakuten to earn rewards when shopping with your favorite brands.\n*   **Earn cash back from your credit card.** You can get paid for making everyday purchases with a cash back rewards credit card. If you don't have a cash back rewards credit card, use Experian CreditMatch™ to find options you may qualify for. You could also opt for a travel rewards credit card that earns you points you can redeem for things like airfare and hotel stays.\n*   **Rent out a spare bedroom in your home.** Do you have extra space in your home that you don't use often? Create a listing on Airbnb or a similar service to rent it out and streamline the payment process. You can also hire a cleaning service to tidy up the space between rentals, although this may eat into your profit.\n*   **Become an affiliate marketer.** If you already have an online platform with a large following, take advantage of affiliate marketing opportunities. You'll have to spend a little time figuring out how to promote the product or service, but you probably won't have to invest to start earning money. But be mindful that U.S. law requires you to disclose to readers that you'll earn money if they make a purchase using your affiliate link. END
 TITLE: How Is Passive Income Taxed? CONTENT: Start Earning Passive Income\n----------------------------\nYou can use passive income to supplement or replace your income from a job. If you haven't yet started, explore a few low-cost ideas that are relatively easy to set up to get your feet wet. Once you have some experience under your belt, you can set up multiple streams to maximize your earning potential and potentially improve your financial health. END
 TITLE: How to Get Financial Assistance if You Have a Disability CONTENT: Financial Resources for People With Disabilities\n------------------------------------------------\nFinancial assistance for those with disabilities may include direct payments or subsidies that reduce out-of-pocket costs for monthly expenses. Here are a few key resources to consider if you need help paying for housing, food and medical care:\n**Social Security Administration**: Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) are two programs that offer monthly payments to help cover living expenses.\n**Medicare**: Medicare is a health insurance program that can help cover medical costs for people 65 or older and people younger than 65 who have disabilities.\n**Medicaid**: Medicaid is a health care assistance program that can help adults with low income cover medical bills.\n**Housing Voucher Program (HVP)**: This Department of Housing and Urban Development (HUD) program—also known as Section 8—provides housing vouchers that pay part of your rent in an approved rental.\n**Housing Choice Voucher (HCV) Homeownership Program**: People who receive a housing voucher and want to buy a home may qualify for the homeownership voucher program. This program offers homebuyer counseling and assistance in covering housing expenses.\n**Supplemental Nutrition Assistance Program (SNAP)**: The SNAP program helps low-income families put food on the table. People with disabilities may qualify for an increased SNAP allotment. END
 TITLE: How to Get Financial Assistance if You Have a Disability CONTENT: Assistance for Specific Financial Situations\n--------------------------------------------\nIf you need money in an emergency or cash to pay for school or a home modification, the programs below may be able to help you fill a specific financial gap.\n### Emergency Relief\nIf you're waiting for SSI benefit payments to start or you're facing a financial emergency that affects your health or safety, you may be able to get an advanced payment from Social Security to help make ends meet. Temporary Assistance for Needy Families (TANF) is another program run by states that may offer temporary assistance to families in need.\n### Home Modification Assistance\nIf you need to make a change to your home—such as installing a wheelchair ramp—the state you live in might offer grants and loans to help you make the modification. For example, residents of Illinois may qualify for home modification loans of up to $5,000 through the Illinois Assistive Technology Program.\nNational housing modification programs also offer assistance to those who are eligible. For veterans, the Specially Adapted Housing (SAH) Grant and Home Improvements and Structural Alteration (HISA) Grant can be used to pay for home accessibility modifications. The U.S. Department of Agriculture's Section 504 Home Repair program provides loans to low-income homeowners that can help cover the cost of home repairs and advancements, including changes to make your home more accessible.\n### Education Assistance\nIf you need help paying for school, you may be eligible for financial aid, such as the Federal Pell Grant, Federal Supplemental Educational Opportunity Grant and Federal Work-Study programs. Completing the Free Application for Federal Student Aid is required for many aid programs.\nSchools and independent organizations may also provide their own financial aid and scholarship programs. State education agencies could give you a better idea of what's available locally.\nIf you have federal student loans and are unable to work, a Total and Permanent Disability loan discharge could relieve you from the responsibility of repaying loans. The Federal Student Aid website outlines the eligibility conditions to apply for this discharge. END
 TITLE: How to Get Financial Assistance if You Have a Disability CONTENT: National Charities and Organizations Providing Services\n-------------------------------------------------------\nMany charities and organizations offer independent services to people with disabilities. For example, if someone infringes on your rights guaranteed under the Americans with Disabilities Act (ADA), you may be able to find charities and organizations that offer pro bono legal counsel. While this isn't an exhaustive list, here are a few organizations that provide different services:\n*   **National Disability Rights Network**: This is a nonprofit that operates in every state and U.S. territory advocating for the rights of people with disabilities by helping them get adequate health care, education, employment, housing, transportation and more.\n*   **Disability Rights Legal Center** **and** **Cancer Legal Resource Center**: These organizations work to protect the rights of people with disabilities and those affected by cancer by providing legal assistance.\n*   **National Disability Institute**: This charitable organization partners with financial institutions, governments and community organizations to provide financial resources to those with disabilities.\n*   **Friends of Disabled Adults and Children**: This organization refurbishes equipment—such as wheelchairs, medical beds and more—for people with disabilities.\n*   **Wheelchair Foundation**: The Wheelchair Foundation aims to give a wheelchair to everyone in the world who needs one, even if they can't afford it.\n*   **Patient Advocate Foundation**: The Patient Advocate Foundation offers cash management, copayment relief and financial aid funds for people dealing with chronic, life-threatening and debilitating diseases.\n*   **HealthWell Foundation**: The HealthWell Foundation helps cover out-of-pocket costs for those who are underinsured. END
 TITLE: How to Get Financial Assistance if You Have a Disability CONTENT: Other Financial Options for People With Disabilities\n----------------------------------------------------\nAside from the assistance programs above, there are other financial tools that could help you save money and manage debt that you're trying to pay off.\nAchieving a Better Life Experience (ABLE) accounts are a type of tax-advantaged savings method for people with disabilities. You don't have to pay tax on account earnings as long as the money is used for qualified expenses. Qualified expenses include money spent on education, housing, transportation, employment training, legal fees, health care, basic living expenses and other expenses related to a disability.\nIf you're having trouble tackling credit card debt, contact your creditors because they may be able to offer payment arrangements. Another option to consider is working with a credit counseling agency to establish a debt repayment plan.\nUnder a debt repayment plan, a counselor reviews your budget and negotiates a reduction of fees or interest with your creditors. Then, you make one payment to the credit counseling agency and it pays off your debt for you. This could save you money and take away the stress of juggling multiple payments.\nIf mortgage payments are becoming hard to manage, you may be able to request loan forbearance, which pauses payments temporarily. In some cases, a lender may even be willing to modify your loan to make it easier for you to repay. If you can no longer afford the home, a last resort could be a short sale or deed-in-lieu of foreclosure. END
 TITLE: How to Get Financial Assistance if You Have a Disability CONTENT: The Bottom Line\n---------------\nMany governments and nonprofit agencies offer assistance to persons with disabilities. If you need help paying for daily expenses or medical care, Social Security benefit payments, housing vouchers, food stamps and Medicare or Medicaid could offer temporary or long-term relief.\nOne thing to keep in mind is there may be a waiting period to get approved for certain benefits, such as a housing voucher, so apply as early as possible if you think you'll need help.\nAssistance applications may ask for information like your income, medical history and job history, so getting that documentation together ahead of time could help you get through the paperwork faster so you can get the support you need more rapidly. END
 TITLE: New Child Tax Credits Under the 2021 Stimulus Plan CONTENT: Answers to Your Expanded Child Tax Credit Questions\n---------------------------------------------------\nMany of the details pertaining to when direct payments will begin and other specifics are still being worked out. As of publication, this is what we know so far.\n**How much per child is the tax credit?**  \nIn 2021, parents earning up to $400,000 jointly or $200,000 as single or head-of-household filers receive a child tax credit of $2,000 for every child 17 years old or younger. Parents who meet additional income guidelines (see below) also receive an enhanced child tax credit: Families with children 5 and under may receive up to an additional $1,600 for a total credit of $3,600. Families with children 6 to 17 are eligible for an additional $1,000, or $3,000 total.\n**What are the income guidelines?**  \nThe expanded child tax credits start to phase out at the following adjusted gross income levels: $75,000 for single taxpayers, $112,500 for head-of-household filers and $150,000 for joint returns. The credit is reduced by $50 for every $1,000 over these income thresholds.\nFamilies that do not meet these income guidelines may still qualify for the regular child tax credit of $2,000 per child if their incomes are below $400,000 for married couples filing jointly or $200,000 for single\/head-of-household taxpayers.\n**Are all children eligible?**\n*   Children must be U.S. citizens, national or resident aliens and have a Social Security number.\n*   They must be claimed as a dependent on your 2021 tax return.\n*   They must be related to you and live with you for at least six months during the year.\n**How will the IRS know whether or not you qualify?**  \nThe IRS will look at your most recent tax return for information on your income and dependent children to determine your eligibility to receive advance payments. If your information has changed since your last tax return, you'll have the opportunity to notify the IRS about the changes.\n**How do you receive the money?**  \nPer the ARPA, you will receive half of your total 2021 child tax credits as advance payments. If you're expecting a total credit of $9,000 for your three qualifying children, for example, you can anticipate $4,500 in advance payments, divided into installments. The plan is to send six monthly payments from July through December; so in our hypothetical example, each payment would be $750. The IRS plans to make most of these payments by direct deposit. You can then claim the remaining half of your tax credit when you file your 2021 return.\n**What if your information has changed since your last tax return?**  \nThe IRS is creating an online portal that will enable taxpayers to opt out of advance payments or submit new information that may affect their eligibility for credits, such as the birth of a child or a change in income. In the meantime, stay tuned to IRS announcements for more information.\n**What if you receive more in benefits than you're entitled to?**  \nYou will reconcile your advance payments when you file your 2021 taxes. If you receive more in benefits than you're entitled to claim, you may be required to repay that amount along with your taxes, although there may also be allowances for taxpayers to keep all or some of the money based on income. Bottom line: If you know you're being overcompensated, notify the IRS to avoid a bill at tax time.\n**Are these payments taxable?**  \nAdvance payments are a tax credit and are therefore not taxable, though you will need to indicate how much you were paid on your 2021 taxes. END
 TITLE: New Child Tax Credits Under the 2021 Stimulus Plan CONTENT: Do You Need to Take Any Action Now?\n-----------------------------------\nThe IRS will do the legwork needed to figure out eligibility and distribute benefits, much as they did with stimulus checks. If the information in your most recent 2020 or 2019 tax return is still accurate and qualifies you for child tax credits, you don't have to do much except wait.\nHowever, if any of the following items are on your to-do list, consider taking care of them now—or prepare to do so when the IRS is ready to receive information:\n1.  If you haven't filed taxes for 2020, file now—even if your income does not require you to file. That's the fastest way to give the IRS the information it needs to get you started.\n2.  Make sure each of your children has a Social Security Number.\n3.  Set up direct deposit with the IRS.\n4.  Make note of any changes to your income, filing status, number of children—anything that might change your eligibility to receive child tax credit advance payments since you last filed your taxes. When the IRS makes online reporting available, be sure to notify them of your new information. END
 TITLE: New Child Tax Credits Under the 2021 Stimulus Plan CONTENT: Will Child Tax Credits Help Your Credit?\n----------------------------------------\nChild tax credits won't affect your credit directly. Any advance payments you receive won't appear on your credit report or be used to calculate your credit score. But, depending on how you use these credits, they may help you improve or maintain your credit in a few significant ways.\n*   **Pay down debt.** If you're carrying high-interest credit card debt, consider adding all or part of your money to your monthly credit card payment. You'll reduce the amount of credit you're utilizing—which can help raise your credit score—and save yourself money in interest.\n*   **Avoid adding to your debt.** Similarly, the money you receive can help you make purchases you've put off during the past year without utilizing your credit. Maybe your child would benefit from a new computer or joining a sports league as pandemic restrictions loosen.\n*   **Invest in your creditworthiness.** If you're still adapting to a new financial normal, this money could help you open up new possibilities. Tax credits may make it possible to get after-school care so you can work a full-time job and increase your income or provide seed money for a micro-business you can use to generate extra cash. END
 TITLE: New Child Tax Credits Under the 2021 Stimulus Plan CONTENT: More Help for Families\n----------------------\nExpanded child tax credits aren't the only help for families in the ARPA. Maximums on Child and Dependent Care Credits have been raised to $4,000 for one qualifying child and $8,000 for more than one. Low-income families may also be able to take advantage of the Earned Income Tax Credit and the additional child tax credit.\nDemocrats in Congress also hope to make this year's child tax credit expansion permanent. This could mean that a wide majority of American families would receive a form of ongoing guaranteed income each month. Additionally, together with other provisions in the ARPA, these tax credits could cut the child poverty rate to 6.5%, according to the Urban Institute, less than half what it is today. If you are among the taxpayers who will benefit, this is an investment in you and your family. END
 TITLE: What Is a Taxpayer Identity Protection PIN? CONTENT: How Do Tax Identity Protection PINs Work?\n-----------------------------------------\nAn Identity Protection PIN is a six-digit code that the IRS can assign to taxpayers. Your IP PIN is tied to your Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN). If you have an IP PIN, you'll add it to your tax return before filing.\nRequesting and using an IP PIN could help you fight tax identity theft because the IRS will reject e-filed returns or stop processing paper-filed returns that don't have the correct IP PIN. As a result, scammers won't be able to file a tax return using your information unless they've also stolen your IP PIN. END
 TITLE: What Is a Taxpayer Identity Protection PIN? CONTENT: How to Request an IP PIN\n------------------------\nIf you're a confirmed victim of tax-related identity theft, the IRS may have already assigned you an IP PIN. Or, if you're dealing with tax-related identity theft, the IRS may assign you an IP PIN once it resolves your case. In these situations, the IRS will mail your PIN on a CP01A notice, and will automatically mail you a new IP PIN each year, around December or January.\nIf you're voluntarily requesting an IP PIN, the easiest and fastest way to do so is to use the IRS' online Get an IP PIN tool. You'll either create or use your existing IRS.gov account, and then verify your identity by sharing:\n*   Your email, tax identification number and mailing address\n*   Your tax filing status\n*   A financial account number that's linked to your name, such as a credit card, student loan, mortgage or auto loan\n*   An activation code that's mailed to you or sent to a mobile phone that's registered to your name\nIf you use the online tool, you can receive your IP PIN as soon as you complete the verification process. The IP PIN will be valid for the current calendar year; you'll need to request a new one the following year.\nIf you can't use the online tool and your adjusted gross income is less than $72,001, you can submit a request by mail. With this option, the IRS won't mail you an IP PIN until next year, but it will automatically mail you a new one each year.\nAnother option is to make an in-person appointment at an IRS Taxpayer Assistance Center and bring two forms of identification, including a government-issued ID with your picture. After verifying your identity, the IRS will mail you your IP PIN within a few weeks and automatically mail you new IP PINs in the future. END
 TITLE: What Is a Taxpayer Identity Protection PIN? CONTENT: Should You Get a Tax IP PIN?\n----------------------------\nAlthough tax identity theft isn't as common as other types of identity theft, it can be a hassle to deal with. Requesting an IP PIN is a free way to help protect yourself. However, before you sign up, remember that:\n*   Once you're assigned an IP PIN, you have to use it or your tax return won't be accepted and processed.\n*   You may also have to request a new IP PIN each year going forward to avoid having your return rejected. There is, however, a plan to let taxpayers who have IP PINs opt out starting in 2022.\nIf your filing status is married filing jointly or you claim dependents, you don't need to request an IP PIN for everyone on your return. But if your spouse or dependents have been assigned an IP PIN, you'll want to list it or your return could be rejected.\nIf you lose your IP PIN, you may be able to retrieve it using the same online IRS Get an IP PIN tool. Alternatively, you may be able to get your IP PIN reissued by calling the IRS, but it could take a few weeks to receive your new IP PIN in the mail. END
 TITLE: What Is a Taxpayer Identity Protection PIN? CONTENT: Additional Ways to Protect Yourself From Tax Identity Theft\n-----------------------------------------------------------\nGetting an IP PIN isn't the only way to help prevent tax identity theft, nor is it an infallible solution. You can also:\n*   **File your tax return early.** Many taxpayers can begin filing their tax returns by the end of January. Filing early will prevent fraudsters from using your information to file a tax return in your name, at least for the current tax year.\n*   **Protect your personal information.** Ideally, fraudsters won't be able to use your personal information to file a fraudulent return because they don't have access to it. There are many ways to help protect your personal information, including using strong passwords online, shredding paper documents and being wary of phishing attempts.\n*   **Never share your IP PIN.** If you decide to get an IP PIN, never share it with anyone aside from a trusted tax preparer. After requesting an IP PIN by mail, the IRS may call you to verify your identity—but the IRS will never ask for your IP PIN.\nTax identity theft isn't the only type of identity theft you need to worry about—and others could wind up being more costly to resolve. You may want to sign up for a free credit monitoring service to quickly identify if someone else uses your information to take out a loan or open a credit account. There are also identity theft protection services, such as Experian IdentityWorks℠, that offer more robust monitoring and recovery assistance. END
 TITLE: Should I Add a Consumer Statement to My Credit Report Due to COVID-19? CONTENT: What Is a Consumer Statement?\n-----------------------------\nConsumer statements can be added to your credit report at your request through each of the three major credit bureaus (Experian, TransUnion and Equifax). These statements are generally limited to pre-written options or up to 100 words you write yourself.\nThe reason you'd normally add a consumer statement to your credit reports would be to explain your side of the story as it pertains to entries on your credit reports. Potential lenders will see the statement when reviewing your credit report, and it may help them better understand any extenuating circumstances that led to late or missed payments. There's a chance they may take these statements into account when deciding whether to extend credit to you.\nYou can do this any time, but the ongoing COVID-19 pandemic may present a new reason to add a statement to your credit reports if it has caused you to get behind on payments. END
 TITLE: Should I Add a Consumer Statement to My Credit Report Due to COVID-19? CONTENT: Is Adding a Consumer Statement Helpful During a Crisis?\n-------------------------------------------------------\nThe purpose of adding a consumer statement to a credit report is to provide additional context about an item on your report. Such a statement could show potential lenders that negative items on your reports are due to circumstances beyond your control, such as being laid off due to the COVID-19 pandemic, and don't necessarily reflect poor credit habits.\nWhen lenders access your credit reports, they have the ability to see and read the statement you've added there. To the extent they find the information informative and helpful, they may consider the content of the statement in their underwriting process.\nOnce the credit report item addressed in your consumer statement eventually drops off your report, the statement should be removed as well since it no longer applies. A statement that needlessly informs a lender of a mark against you will only be doing you a disservice.\nIt's also important to understand that consumer statements do not directly affect credit scores. Lenders may take the statements into consideration, but the statements are not included in credit score calculations. END
 TITLE: Should I Add a Consumer Statement to My Credit Report Due to COVID-19? CONTENT: What Is a Disaster Code?\n------------------------\nYou may have recently read or heard about a \"disaster\" code that can be added to your credit reports. This is partially true. There is a code that indicates you've been affected by a disaster. However, that code is added by your lender to _specific accounts_ that appear on your credit reports, rather than a general statement meant to encompass all the accounts in your report.\nThis code, which has been a part of credit reporting for many years, reads, \"affected by natural or declared disaster\" when added to an account on your credit reports. When this code is present, any lender that accesses your credit reports will see that you've been impacted by a disaster as it pertains to the management of that particular account. With respect to credit scoring, however, a disaster code does not affect all credit scores.\nFICO's credit scoring models do not treat the accounts with a disaster code any differently, nor does the code prevent FICO from considering other positive or negative aspects of any account.\nWith respect to VantageScore® credit scores, the newer versions of VantageScore (3.0 and 4.0) will ignore any negative aspects of an account while the disaster code is present. Once the disaster code is removed, any negative aspects of the account will again be considered in your score. END
 TITLE: Should I Add a Consumer Statement to My Credit Report Due to COVID-19? CONTENT: How to Add a Consumer Statement or Disaster Code to Your Experian Credit Report\n-------------------------------------------------------------------------------\nThere are two ways to have the disaster code added to your credit reports. You can contact your lender or lenders and let them know you've been impacted by COVID-19 and you'd like the accounts on your credit reports to indicate this. They may add the disaster code to your accounts the next time they report your information to the credit reporting companies, but are under no obligation to do so.\nTo add a consumer statement yourself, the first step is to contact the credit reporting agencies and get copies of your credit reports. Once you have your credit reports, review them to decide if you feel the need to add a statement and, if so, which type.\nThe process for adding a consumer statement differs at each bureau, and the following information will be helpful should you decide to add a statement to your Experian credit report.\nFirst, it's important to understand that statements can be added to an Experian credit report at either the account level or the report level. This means you can attach a personal statement that speaks to your credit report as a whole if you've experienced hardship that's affected several accounts, or you can single out an account you may have had particular trouble with.\n*   **Account-specific statement**: Through Experian's Dispute Center, you can either choose a statement from a list of pre-written options or write your own statement of up to 100 words. Account statements will be on your credit report as long as the account it's attached to remains on your report, even if the negative information in question has since fallen off.\n*   **Personal statement**: You can choose one of several personal statements to add to your Experian credit report. If you've experienced financial hardship due to the COVID-19 pandemic and missed payments as a result, you may consider adding a statement that says \"Delinquency due to natural or declared disaster.\" This type of statement will remain on your report for two years before automatically being deleted.\nOnce you have a statement added to your Experian credit report, it's important to monitor your credit to make sure the statement doesn't remain longer than necessary. Negative information will naturally fall off your credit report after seven to 10 years, so remove any statements that may allude to something negative that's since been removed from your credit report. END
 TITLE: Should I Add a Consumer Statement to My Credit Report Due to COVID-19? CONTENT: Protect Yourself; Protect Your Credit\n-------------------------------------\nCOVID-19 has impacted not only U.S. consumers, but consumers globally. And while your credit reports and credit scores may not be your primary concern, it's important to take some time to explore your options for preserving your credit reports and credit scores.\nConsumer statements are a free and easy way to ensure that information on your credit reports is explained in your own words. They are free to add, and lenders may take them into account when reviewing your credit reports. END
 TITLE: Can Previously Deleted Items Reappear on My Credit Reports? CONTENT: Understanding How a Credit Report Dispute Works\n-----------------------------------------------\nThe credit report dispute process is designed to help consumers ensure the accuracy of their credit reports. If you believe an item on one of your credit reports from the three major credit bureaus (Experian, TransUnion or Equifax) is inaccurate, you can dispute the information. The credit bureau will then investigate your dispute, which at Experian entails contacting the company that reported the information, also known as the data furnisher, who must then determine whether the information they reported to the bureau was accurate.\nOnce the data furnisher receives a notice of your dispute from a credit bureau, they must investigate the claim to determine whether the dispute merits a change in their reporting. The process typically takes 30 days or less and results in the contested item either being modified, confirmed as accurate and left on your credit report, or deleted from your credit report.\nIn rare circumstances, items deleted from your credit reports can, in fact, reappear on your credit reports even after the dispute resolution process has been completed. This practice is referred to in the Fair Credit Reporting Act (FCRA) as \"reinsertion.\" END
 TITLE: Can Previously Deleted Items Reappear on My Credit Reports? CONTENT: Why a Deleted Item May Reappear on Your Credit Reports\n------------------------------------------------------\nA previously deleted item could reappear on your credit reports for a couple reasons. The dispute resolution process allows for information to be removed from a credit report if, in response to the dispute, the furnishing party cannot verify it or doesn't respond to the credit reporting company's request for an investigation within the time allowed by the FCRA.\nThe 30-day limit on credit report investigations doesn't require that a credit bureau permanently block an item from ever being re-reported if it is initially removed, however. For example, if a lender doesn't respond within its initial 30-day time limit, but then responds on day 35 that the disputed information is in fact correct, the item can be reinserted on the credit report.\nIf a furnisher never responds to a credit report dispute, the credit bureaus would remove the item. But if the furnisher re-reports the item to the credit reporting companies the following month as part of their normal credit reporting updates, the item could be reinserted.\nIf the credit reporting company accepts the reinsertion by the furnisher, they are required to provide a notice of reinsertion to the consumer within five business days of such reinsertion. END
 TITLE: Can Previously Deleted Items Reappear on My Credit Reports? CONTENT: What to Do if Incorrect Information Reappears on Your Credit Reports\n--------------------------------------------------------------------\nIf an item you thought was deleted from your credit report reappears there, the credit bureau involved will send you a reinsertion notice to let you know. If you believe the reinserted item should not be on your report, you have the same rights to re-dispute the information either with the credit bureau or with the data furnisher directly.\nKeep in mind, however, that if an item has been reinserted, it's because the furnisher and the credit reporting company reasonably believed the information was accurate. If you simply re-dispute the same item again using the same basis for your dispute, you may not be successful in having the information removed. And it's possible the credit reporting company may consider your dispute frivolous if the same dispute is submitted multiple times and terminate the investigation process. In those cases where you choose to re-dispute an item, it might be in your best interest to provide documents or supplemental information bolstering your claim that the item is incorrect rather than re-submitting the same dispute with no additional information.\nAll three of the major credit reporting agencies will accept documents from consumers who have filed credit report disputes. You can simply attach them to your dispute when you file online. You can also include them in any written dispute that you choose to submit via the U.S. mail system. END
 TITLE: Can Previously Deleted Items Reappear on My Credit Reports? CONTENT: The Bottom Line\n---------------\nChances are that if you are successful in getting something removed from your credit reports, there's a good reason it was removed and it will not reappear. Still, that doesn't always mean the deleted item is gone forever and has no chance of ever reappearing.\nAs long as the item is accurate and verifiable, a furnishing party can re-report the entry and have the credit reporting agency can reinsert the entry on your credit reports. However, if an item has been reinserted, the credit bureau will send you a notice as to the reinsertion so you can attempt to resolve any remaining issues with respect to data accuracy. END
 TITLE: Can I Get a Foreclosure Removed From My Credit Report? CONTENT: When Will a Foreclosure Fall off My Credit Report?\n--------------------------------------------------\nForeclosures, like other negative marks, won't be on your credit report forever. In fact, a foreclosure must be removed seven years after the date of the first late payment that led to its default. In credit reporting terms, this is called the date of first delinquency, or DoFD.\nA foreclosure that's accurately reported will be removed from your credit reports no later than seven years from its DoFD. This deletion process will kick in automatically at the credit bureaus and do not require a reminder. If, however, the foreclosure is somehow incorrect, you can alert the credit bureaus by going through the dispute process. END
 TITLE: Can I Get a Foreclosure Removed From My Credit Report? CONTENT: How Much Does a Foreclosure Affect My Credit?\n---------------------------------------------\nScoring systems used by both FICO® and VantageScore® consider foreclosure a derogatory event. And while the impact to credit scores will vary by consumer, it's safe to say that a foreclosure can be very problematic.\nThe foreclosure itself, as well as the late payments that preceded it, will have a major impact on your credit scores—especially if your scores were high to begin with. If your score is on the high end of the scale, you may see a much more significant impact than someone whose credit score is lower.\nIn addition to a foreclosure's potential impact on your credit scores, it may also cause you to face consequences due to mortgage policies published by Fannie Mae and Freddie Mac. You may not be eligible for either a Fannie Mae- or Freddie Mac-backed loan for several years if you've gone through a foreclosure. This penalty is called a mandatory waiting period, and it may freeze you out of the homebuying market for as long as seven years regardless of how well your credit scores have recovered. END
 TITLE: Can I Get a Foreclosure Removed From My Credit Report? CONTENT: How Can I Rebuild My Credit After a Foreclosure?\n------------------------------------------------\nWhen it comes to rebuilding your credit reports and credit scores after a foreclosure, one thing is universally true: Time is your greatest ally.\nEven if you did nothing except wait for time to pass, your credit scores would improve simply because late payments and foreclosure have less impact on your scores as they age. And when the foreclosure eventually is removed from your credit reports, it will no longer have any negative impact at all.\nIn the meantime, you can do other things to help the rebuilding process.\n*   **Check your credit reports and scores regularly.** You can check your credit scores for free in a variety of ways, including getting it through Experian. When checking your credit reports, review what might be dragging down your scores, such as a high credit card debt load or frequent applications for new credit.\n*   **Avoid any further negative credit reporting.** The best way to do this is to make all your payments on time, without exception. Never missing a payment means you won't have to worry about derogatory credit entries.\n*   **Pay down or pay off your credit card debt.** FICO® and VantageScore® credit scoring models both consider your credit utilization ratio, which measures your credit card debt relative to your total credit limit. The more credit card debt you have on your credit reports and the closer your balances are to your credit limits, the higher the credit utilization ratio and the more it can hurt your scores. Shoot for a ratio under 10%. END
 TITLE: Can I Get a Foreclosure Removed From My Credit Report? CONTENT: Boost Your Scores\n-----------------\nExperian recently introduced a free service to consumers called Experian Boost™† that can help you get credit for household bills you pay every month. Boost allows you to add utility and cellphone accounts to your Experian credit report, in most cases giving you an instant FICO® Score☉ increase.\nWhile you can't have a legitimate foreclosure removed from your credit report, you can take steps now to ensure your credit gets back on track. Determine which methods will work best for you, and start helping your credit recover as quickly as possible. END
 TITLE: Can Paying off Collections Raise Your Credit Score? CONTENT: What Are Collection Accounts?\n-----------------------------\nA collection account is an entry on your credit report that indicates default on a previous obligation. The original creditor either sold the defaulted debt to a debt buyer or consigned the debt to a collection agency. The goal of the collector, not surprisingly, is to work on behalf of its client to collect the defaulted debt from the debtor, or as much of it as possible.\nCollection accounts often are reported to the credit reporting agencies, and are allowed to remain on credit reports for up to seven years from the original debt's first delinquency date, per the Fair Credit Reporting Act (FCRA). END
 TITLE: Can Paying off Collections Raise Your Credit Score? CONTENT: How Do Collections Affect Credit?\n---------------------------------\nCollection accounts are considered by both FICO®'s and VantageScore's credit scoring systems and can be highly influential to your credit scores. Collections fall under payment history, which is the biggest factor in your FICO® Score☉ calculation, driving 35% of your score. Consumers with collections on their credit reports are likely to have lower credit scores than consumers who have no collections.\nIn addition to the potential impact to your credit scores, the presence of collections also can influence lender decisions. For example, Fannie Mae, which provides financing to mortgage lenders, has several policies requiring that collections be paid off prior to you closing on a mortgage loan.\nIt's always a good idea to pay collection debts you legitimately owe. Paying or settling collections will end the harassing phone calls and collection letters, and it will prevent the debt collector from suing you. The debt collector will then update your credit reports to show the collection account now has a zero balance.\nWhile it's natural to assume that paying or settling a collection account will lead to a higher credit score, this is not always the case. As with most questions regarding credit scores, the answer to whether paying a collection will be helpful is: \"It depends.\" END
 TITLE: Can Paying off Collections Raise Your Credit Score? CONTENT: Will My Credit Improve if I Pay My Collection Account?\n------------------------------------------------------\nNewer credit scoring models ignore collections that have a zero balance. This is true for both the most recent version of FICO®'s credit score, FICO® 9, and the two newest versions of the VantageScore® credit score, 3.0 and 4.0.\nWhen you pay or settle a collection and it is updated to reflect the zero balance on your credit reports, your FICO® 9 and VantageScore 3.0 and 4.0 scores may improve. However, because older scoring models do not ignore paid collections, scores generated by these older models will not improve.\nThis is important because some lenders, especially mortgage lenders, use older versions of the credit scoring models. This means despite it being a good idea to pay or settle your collections, a higher credit score may not be the result. If you do choose to pay or settle your collections, it is a good idea to see how it impacts your credit scores. You can check your FICO® Score from Experian for free.\nKeep in mind that the FICO® Score currently available from Experian is the FICO® 8 version, which does not ignore paid collections. This is a good measuring stick because if you've got a solid FICO® 8 Score even after paying your collections, it's likely that your FICO® 9 and VantageScore 3.0 and 4.0 credit scores will be equally strong, or even better. END
 TITLE: Can Paying off Collections Raise Your Credit Score? CONTENT: Can You Remove Paid Collections From Your Credit Report?\n--------------------------------------------------------\nWhile the FCRA allows collections to be reported for up to seven years, there is no requirement that a debt collector or a credit reporting agency remove a collection simply because it has been paid.\nIf, however, you believe you have a collection account on your credit report that is incorrect, then you have the right to dispute that information with the credit bureau and have it corrected or removed if it is proved to be inaccurate. This right applies to collections and other items on your credit reports you believe are incorrect.\nIf you have a verified collection account on your credit report, it will not be removed until it naturally falls off after seven years. You can add a 100- to 200-word consumer statement to your credit reports explaining the collection, though this is not always recommended. END
 TITLE: Can Paying off Collections Raise Your Credit Score? CONTENT: How to Improve Your Credit Scores After a Collection\n----------------------------------------------------\nThe good news about collection accounts on your credit reports? As they age, they count less toward your credit scores. And even while you have a collection or collections on your credit reports, there are many other ways to improve your credit scores.\nThe best way to start improving your credit score is to prevent new derogatory information from appearing on your credit reports. You can achieve this by making all of your debt payments on time, without exception. If your bills are paid on time, your debts will never go into default and there will never be a need for a debt collector to get involved.\nEnsuring that your credit card debt is as low as possible is another great way to improve your credit scores. Credit scoring models consider your credit utilization ratio, or amount of credit card balances relative to total credit limits, when calculating your scores. Maintaining low balances ensures a low utilization ratio, which can improve credit scores.\nFinally, don't apply for credit unless you need it. Each time you do so, the lender will likely pull one, if not more, of your credit reports. This will result in a hard inquiry on your reports, which can lower your scores temporarily. And while inquiries are the least influential factor in your credit scores, they can still be a red flag to lenders. END
 TITLE: Can Paying off Collections Raise Your Credit Score? CONTENT: The Bottom Line\n---------------\nMost negative credit information, including collections, must eventually be removed from your credit reports as a matter of law. It's in your best interest, however, to pay or settle the debt as quickly as possible. Remember, newer credit scoring models ignore zero-balance collections, while older scoring models do not.\nIf you want to check collection balances, or you don't know what's on your credit reports, you can access a free copy of each of your credit reports from the three major credit bureaus (Experian, TransUnion and Equifax) once a year at www.AnnualCreditReport.com. You can also check your Experian credit report every 30 days for free. END
 TITLE: How to Set Up Bank Account Alerts CONTENT: Types of Bank Account Alerts\n----------------------------\nBank account alerts are simply digital notices your bank sends to you by email, text message or push notification. They provide a way to keep track of banking transactions that you deem important. Below are some examples of the types of alerts your bank may allow you to set up.\n*   **Large purchase alert**: You can opt to receive messages for large debit card transactions. For example, if you would like to be notified of debit amounts over $200, you'll receive an alert anytime a single purchase exceeds that amount.\n*   **Low balance alert**: Perhaps you would like to keep your account balance above a certain minimum threshold. In this case, if your account goes below the amount you set, you'll receive an alert. This can be a helpful way to avoid account overdrafts (and the fees that come with them) and to ensure you have enough money in your account to pay bills.\n*   **ATM transaction alert**: Banking via ATM is a common part of many people's banking experience. Some banks will alert you each time your debit card is used at an ATM to withdraw or deposit money.\n*   **Transfer alert**: This notification lets you know anytime money is transferred into or out of your account. You may be able to specify transfer amounts above a certain amount, say $500, if you want to receive fewer notifications.\n*   **Deposit alert**: Get an alert anytime a deposit posts to your account, or a deposit over a certain amount posts, depending on your preferences and the bank's capabilities.\n*   **Fraud alert**: This type of bank account alert may be one of the most important you can receive—and is typically one your bank provides automatically. If your bank suspects fraudulent activity with your bank-issued credit card or debit card, you'll be notified immediately. Keep in mind, this is different from a fraud alert you can set up for your credit reports and instead relates solely to your bank card or account.\nYour bank may offer more or different types of bank alerts to their banking customers. If you're not sure what's available at your bank, check your bank's online portal or app, call the toll-free number, or visit your branch and speak with a customer representative to find out what alerts you can place on your accounts. END
 TITLE: How to Set Up Bank Account Alerts CONTENT: Fortunately, it's not too difficult to set up bank account alerts. Each bank's online portal will be slightly different, but here is a general idea of how to approach the process.\n1.  Decide what type of information is important for you to know in order to maintain a healthy bank account. While a large purchase or ATM transaction alert may be helpful to some, others may prefer to receive alerts only when their balance dips below a certain amount.\n2.  To set up your alerts, sign into your online banking portal and go to your accounts or account services. Click on \"manage alerts\" (your bank's instructions may be slightly different) and choose the alerts you'd like to receive. If you're setting up alerts for large purchases or low balances, you'll set your alert thresholds at that time.\n3.  Decide how you want to receive your alerts. The three primary ways your bank sends alerts are:\n*   Text message\n*   Email message\n*   Mobile push notification\nOnce you confirm your choices, you'll start receiving alerts. END
 TITLE: How to Set Up Bank Account Alerts CONTENT: Why Are Bank Account Alerts Important?\n--------------------------------------\nBank account alerts are extremely user-friendly to set up and offer a helpful way to manage your account. If you're working toward specific financial goals, bank account alerts are an ideal way to avoid financial oversights or mistakes that could potentially derail your plans.\nImportantly, bank account alerts can also notify you of potential fraud. Whether it's an ATM transaction you didn't make, a fraudulent money transfer or a large purchase that isn't yours, bank account alerts can let you know immediately if your account needs urgent attention. END
 TITLE: When Is Getting A Travel Credit Card Worth It? CONTENT: A travel credit card is a type of rewards card that earns points or miles you can redeem for travel. Travel credit cards come in a few different shapes and sizes. END
 TITLE: When Is Getting A Travel Credit Card Worth It? CONTENT: When Should I Get a Travel Credit Card?\n---------------------------------------\nIf you think you might want to apply for a travel credit card, it pays to take advantage of good timing. Here are some indications the timing might be right.\n*   **There's a high introductory offer.** Many travel credit cards come with what is known as a sign-up bonus, intro bonus or welcome offer. This is usually tens of thousands of points or miles you can earn by opening a new card and using it to make a certain dollar amount of purchases within a set timeframe.  \n    For example, the Chase Sapphire Reserve® is offering new cardholders 60,000 bonus points after they spend $4,000 on purchases in the first 3 months of account opening.\n    The thing is, introductory offers change all the time, so if you apply at the wrong time, you could be missing out on thousands of points or miles.\n*   **The annual fee is waived.** Sometimes, as part of the introductory package, travel credit cards offer to waive their annual fees for the first year. These types of offers tend to come and go, though, so pay careful attention to the terms and conditions of any credit card you apply for to make sure it is one that includes this kind of savings.\n*   **Your credit has improved.** Finally, and perhaps most important, many of the best travel credit cards are considered premium products and require applicants to have good to excellent credit. If you have been working to improve your credit score, now might just be the right time to finally apply for a new travel credit card.  \n    Before doing so, though, check your score (which you can do for free through Experian or even other credit cards you might already carry), and see if it is within the average range for a specific card. One of the ways you can better your credit is to pay off your bills in full and on time every month. That will also ensure you're not hit with late fees and interest payments that would wipe out the value of any points or miles you earn with your new card. END
 TITLE: When Is Getting A Travel Credit Card Worth It? CONTENT: Is It Worth Paying an Annual Fee?\n---------------------------------\nMany travel credit cards charge an annual fee to keep your account open each year. Think of it this way: You pay the annual fee to be able to use a card's benefits. So it's only worth shelling out that fee year after year if you are getting more value from your card's perks than you are paying to keep it open.\nFor example, the Capital One Venture Rewards Credit Card has a $95 annual fee. But for that, you get the ability to earn miles you can redeem for statement credits against your purchases, or transfer to Capital One's airline and hotel partners including Air Canada, JetBlue and Wyndham.\nThe card will also reimburse you up to $100 for either a Global Entry or TSA PreCheck application once every four years, which takes the hassle out of getting through the airport, and which may make up for the annual fee for at least one of the years you carry the card. Although it can be a pain, when your annual fee comes due each year, do the math and figure out whether you got more value from your travel credit card's benefits than you are paying to continue carrying it. END
 TITLE: When Is Getting A Travel Credit Card Worth It? CONTENT: What to Look for When Choosing a Travel Card\n--------------------------------------------\nYou've read up on travel credit cards, homed in on a few different options, and looked at the pros and cons, including introductory offers and annual fees. Here are the final things you need to consider to choose the right travel credit card for you.\n#### 1\\. Is there something special about the introductory offer?\nFlashy bonuses of 50,000 and even 100,000 points or miles can sound intriguing. But before you apply for a travel credit card, do a little homework to see how its introductory offer has changed over time. If a card you are interested in has ho-hum offers for new cardholders, it is probably worth waiting to see if a better offer comes around in the near future.\n#### 2\\. Can you use the points or miles?\nBecause there are so many different types of travel credit cards, choosing the right one for your needs will really depend on the kinds of points or miles you will actually get use out of. For example, if you only fly United, it might not be worth getting a Delta credit card since you probably won't be booking award tickets on the airline anytime soon. Or if you don't stay in hotels often, why get a Hyatt or Hilton credit card? Think about the kinds of travel plans you tend to make, and then get a credit card that earns the types of points or miles you can redeem for them.\n#### 3\\. Will you benefit from bonus earning rates?\nTo stay competitive, many travel credit cards have begun offering bonus points when you use them at specific merchants, like restaurants or grocery stores. This can vary from card to card even within the same program.  \nFor example, the Hilton Honors American Express Aspire® Card racks up 14 points per dollar on eligible Hilton purchases and then 7 points per dollar for eligible purchases in the following categories: U.S. restaurants, car rentals booked directly with select companies, and flights booked directly with airlines or through AmexTravel.com. It earns 3 points per dollar everywhere else. By contrast, the Hilton Honors American Express Surpass® Card earns 12 points per dollar on eligible Hilton purchases; 6 points per dollar for eligible purchases at at U.S. restaurants, U.S. supermarkets and at U.S. gas stations; then 3 points per dollar elsewhere. So which card will earn you the most points and is the better fit for your needs will depend on where you tend to spend the most money.\n#### 4\\. Will you take advantage of the benefits?\nAs you weigh the benefits of a credit card against its annual fee, really calculate the value you will get from each specific perk and whether you will use it year after year. For example, it's no good applying for the Marriott Bonvoy Brilliant™ American Express® Card and paying its $450 annual fee if you're not planning to use its annual free night award (at a participating hotel with redemption rate up to 50,000 points) and the $300 in statement credits each card membership year you get for eligible purchases at participating Marriott Bonvoy hotels.\n#### 5\\. Do you want travel protections?\nAlthough they often get overlooked, many travel credit cards offer protections in case something goes wrong with your plans. Among the best, the Chase Sapphire Preferred® Card may cover nonrefundable expenses up to $10,000 per person and $20,000 per trip, with a yearly max of $40,000, if travel plans are cancelled or interrupted (for covered reasons). If you're delayed by over 12 hours or have to stay overnight somewhere, you and certain family members might be entitled to up to $500 per ticket for things like lodging and meals. The card also may cover replacing certain belongings in case your checked bag is delayed or lost. Finally, the card comes with primary insurance on car rentals, meaning you don't have to go through your own insurance or purchase the rental agency's supplemental plans. All those protections can really add up and save you headaches and cash for when your travel plans eventually do go awry. END
 TITLE: When Is Getting A Travel Credit Card Worth It? CONTENT: Weigh the Benefits\n------------------\nTravel credit cards can be great tools for earning rewards such as free flights and hotel stays as well as offering perks like Global Entry application refunds and comprehensive travel protections. When thinking about whether a travel credit card is worth it for you, consider the type of points or miles you will get the most use out of, whether a card is offering a special introductory package, and if its benefits are worth more to you than the cost of its annual fee. By answering those simple questions, you can narrow down the choices to a card that will suit your needs. You can find current credit card offers and personalized picks through Experian CreditMatchTM.\n_All information about the Marriott Bonvoy Boundless™ Credit Card and Hilton Honors American Express Aspire® Card has been collected independently by Experian and has not been reviewed or provided by the issuer of the card. Offer details may be outdated._ END
 TITLE: Fly Through Airport Security With These Credit Cards CONTENT: ### Capital One Venture Rewards Credit Card\n*   $95 annual fee.\n*   New benefit starting June 12, 2018: Up to $100 credit toward TSA Precheck or Global Entry application, every four years.\n*   Earn unlimited 2 miles for every $1 spent.\n*   Earn 60,000 introductory bonus miles when you spend $3,000 on purchases within the first 3 months\n*   No foreign transaction fees. END
 TITLE: Fly Through Airport Security With These Credit Cards CONTENT: ### Chase Sapphire Reserve®\n*   $550 annual fee.\n*   Up to $100 credit toward TSA Precheck or Global Entry application.\n*   $300 travel credit for reimbursement on travel charges made on the card each year.\n*   Earn unlimited 3 points for every $1 spent on travel and dining purchases and 1 point for every $1 spent on all other purchases.\n*   60,000 bonus points after you make $4,000 in purchases during the first 90 days.\n*   No foreign transaction fees. END
 TITLE: Credit Card Miles and Points: How Do They Work? CONTENT: What Are Credit Card Miles?\n---------------------------\nCredit card miles are a type of currency in the world of credit card and loyalty rewards programs. When you use a miles-based credit card for your everyday spending, you earn a certain number of miles or points for every dollar you spend. Depending on the card, you may even earn bonus miles for certain purchases.\nThe term \"miles\" is typically associated with airline frequent flyer programs, but they have nothing to do with measuring the actual distance you've flown. In fact, there are some rewards programs, including JetBlue and Southwest Airlines, that use \"points\" instead.\nThere are also some general travel rewards credit cards that offer miles instead of points, despite the fact that they allow you to use your rewards for far more than just free flights.\nYou can redeem both types of credit card miles for free travel, but you may get more flexibility or better redemption value with some programs than with others. END
 TITLE: Credit Card Miles and Points: How Do They Work? CONTENT: ### Hotel Loyalty Programs\nIf you have a hotel-branded credit card, you'll earn points instead of miles, but the idea is still the same.\nFor example, the Hilton Honors American Express Surpass® Card for a limited time, earns 130,000 Hilton Honors bonus points after $2,000 in eligible purchases are made within the first 3 months of card membership. Plus, you can earn an additional 50,000 Hilton Honors bonus points after you spend a total of $10,000 in purchases on the card in the first 6 months. The annual fee is $95. Earn 12 bonus points per dollar on eligible charges directly with a Hilton hotel or resort; 6 points per dollar at U.S. restaurants, U.S. supermarkets and U.S. gas stations; and 3 points per dollar on other eligible purchases. Terms apply.\nWhen it comes to redeeming those points, however, you may be limited to what Hilton allows, including:\n*   Hotel stays\n*   Experiences\n*   On-property rewards\n*   Shopping and dining\nThe same goes for other hotel loyalty programs, though the rewards rates and redemption options may differ from program to program.\n### General Travel Credit Rewards Programs\nIn addition to airline and hotel rewards programs, some credit card issuers have their own proprietary program.\nA few credit cards that offer this type of rewards program include the Capital One Venture Rewards Credit Card and the Chase Sapphire Preferred® Card. With the former, you'll earn 2 miles for every dollar spent, and the latter offers 3 points per dining, 2 points per dollar on travel and 1 point per dollar on everything else.\nYou can redeem your points or miles with these programs for a wide variety of travel purchases, including airfare, hotel stays, rental cars, cruises, travel agents and more. Depending on the card, you can redeem your points or miles by:\n*   Booking travel directly through the rewards program's online platform.\n*   Booking travel with your card at any eligible third-party travel merchant, then using your points or miles to get a statement credit for the purchase.\n*   Transfering your points or miles to an airline or hotel rewards programs and redeeming them for free flights or hotel stays directly with the loyalty program.\nIn some cases, you can even redeem miles for cash back instead of travel.\nHow Much Are Credit Card Points and Miles Worth?\n------------------------------------------------\nThe value for credit card points and miles varies based on the rewards program it belongs to and which credit card is in your wallet.\n### General Travel Points and Miles\nWith general travel credit card miles, for example, you'll get a set value—generally, 1 point or mile is worth 1 cent when you redeem them for free travel.\nFor instance, if you have 50,000 Capital One Venture Rewards Credit Card miles, they are worth $500 in travel.\nWith some credit cards, including the Chase Sapphire Reserve®, your points are worth 50% more (1.50 cents each) if you redeem them for travel through Chase Ultimate Rewards than if you were to use them to get cash back or gift cards.\nThe advantage of this structure is that you always know exactly what your points or miles are worth, and you don't have to worry about running the numbers every time to determine whether you're getting a good redemption value.\nOn the flip side, when you have a flat redemption rate, there's no opportunity to maximize the value of your rewards.\n### Airline Miles and Hotel Points\nIf you have points or miles with a specific airline or hotel loyalty program, however, their value can fluctuate based on how you redeem them. You can typically get more value, for instance, if you use Delta SkyMiles to book a free flight instead of shopping for merchandise in the SkyMiles Marketplace.\nEven if you're booking a free flight or hotel stay, however, the value of your rewards currency can vary based on the current cash price of the booking and other factors.\nCredit card rewards websites will occasionally run the numbers to provide average values for each point or mile you'd earn with various rewards programs. As of November 2019, according to The Points Guy, Delta SkyMiles are worth, on average, 1.2 cents each, while American Airlines AAdvantage miles will net you 1.4 cents apiece.\nThis means that if you have 50,000 miles with both programs, your balance would be worth roughly $600 with Delta and $700 with American Airlines, according to those calculations.\nWith hotel rewards programs, the contrast can be stark. World of Hyatt points, for instance, are worth 1.7 cents apiece on average, while Hilton Honors points give you just 0.6 cents each. So if you have 50,000 points with both programs, they're worth $850 with one and $300 with the other.\nOf course, these are averages. The value of your points or miles can vary depending on when you book your free award flight or hotel stay, where you're headed, whether you're flying coach or first class, or if booking a higher-category hotel versus a lower one.\nThe benefit of having a dynamic pricing structure is that it provides opportunities to get much more than the average value for your rewards. For example, we found a business class flight on Delta from Salt Lake City to Vienna for 98,000 miles and $123.05 in taxes and fees. If you were to book a similar itinerary using cash, you'd pay $5,417.55. That gives your miles a value of 5.4 cents each, which is far more than the 1.2 cent average.\nNote: To calculate point or mile value, subtract the taxes and fees on the award ticket from the cash price, then divide the difference by the number of points or miles to book. In this case, subtract $123.05 from $5,417.55 to get $5,294.50. Then divide that number by 98,000 to get 0.054, or 5.4 cents.\nThat said, it's important to keep in mind that not all redemptions are above-average. If you're not careful, you could get subpar value from your points or miles. Also, rewards earned with airline or hotel rewards programs can lose value over time if the airline or hotel brand makes changes to its loyalty program.\nHow to Earn More Miles and Points on a Credit Card\n--------------------------------------------------\nCredit cards offer several opportunities to maximize the number of points or miles you're earning, regardless of which rewards program you have. Here are some ideas to consider.\n### Apply for a New Card\nMany credit cards offer big sign-up bonuses as an incentive for consumers to apply. For example, the Chase Sapphire Preferred® Card offers 100,000 bonus points after you spend $4,000 in the first 3 months—that's worth $1,250 in travel when booked through Chase Ultimate Rewards.\nThe Capital One Venture Rewards Credit Card offers 60,000 miles when you spend $3,000 in the first 3 months.\n### Use Your Card Whenever Possible\nIn addition to an intro offer, rewards credit cards also offer points or miles on every purchase you make. So plan to use your card whenever you can to rack up rewards quickly.\nKeep in mind, too, that some cards offer bonus rewards on certain spending categories. As you're looking for your next card, think about the areas where you spend the most and consider getting a card that offers extra points or miles on those purchases.\n### Use Other Methods\nIf you're looking to rack up miles with a specific airline or hotel loyalty program, you can also earn them in other ways. For example, some brands have online shopping portals that provide bonus miles on purchases with select retailers. Simply visit the airline or hotel shopping portal, click through to the retailer's website and make your purchase as usual.\nSome rewards programs also have dining rewards programs. With these, you simply register any credit or debit card and use it at one of the program's participating restaurants, and you'll get the promised rewards. You may even get bonus rewards for using the program more regularly.\nUse Credit Cards Responsibly to Improve Your Credit History\n-----------------------------------------------------------\nChasing points and miles isn't a bad thing, but it can backfire if you're not careful. It's always a good idea to avoid spending more than you can pay in full each month. Rewards are nice, but if you're paying interest, it'll likely neutralize their value.\nAlso, try to keep your balance relatively low. Your credit utilization rate—your balance divided by your credit limit—is an important factor in your credit scores, and it's best to keep it under 30% at all times.\nAs you use credit cards to earn points or miles, check your credit score regularly to make sure you're on track to building or maintaining a good or excellent credit history. Not only will a good credit score make it easier to get approved for more rewards credit cards in the future, but it can also save you money and provide peace of mind in so many other ways. END
 TITLE: Credit Card Miles and Points: How Do They Work? CONTENT: A few credit cards that offer this type of rewards program include the Capital One Venture Rewards Credit Card and the Chase Sapphire Preferred® Card. With the former, you'll earn 2 miles for every dollar spent, and the latter offers 3 points per dining, 2 points per dollar on travel and 1 point per dollar on everything else.\nYou can redeem your points or miles with these programs for a wide variety of travel purchases, including airfare, hotel stays, rental cars, cruises, travel agents and more. Depending on the card, you can redeem your points or miles by:\n*   Booking travel directly through the rewards program's online platform.\n*   Booking travel with your card at any eligible third-party travel merchant, then using your points or miles to get a statement credit for the purchase.\n*   Transfering your points or miles to an airline or hotel rewards programs and redeeming them for free flights or hotel stays directly with the loyalty program.\nIn some cases, you can even redeem miles for cash back instead of travel. END
 TITLE: Credit Card Miles and Points: How Do They Work? CONTENT: A few credit cards that offer this type of rewards program include the Capital One Venture Rewards Credit Card and the Chase Sapphire Preferred® Card. With the former, you'll earn 2 miles for every dollar spent, and the latter offers 3 points per dining, 2 points per dollar on travel and 1 point per dollar on everything else. END
 TITLE: Credit Card Miles and Points: How Do They Work? CONTENT: How Much Are Credit Card Points and Miles Worth?\n------------------------------------------------\nThe value for credit card points and miles varies based on the rewards program it belongs to and which credit card is in your wallet.\n### General Travel Points and Miles\nWith general travel credit card miles, for example, you'll get a set value—generally, 1 point or mile is worth 1 cent when you redeem them for free travel.\nFor instance, if you have 50,000 Capital One Venture Rewards Credit Card miles, they are worth $500 in travel.\nWith some credit cards, including the Chase Sapphire Reserve®, your points are worth 50% more (1.50 cents each) if you redeem them for travel through Chase Ultimate Rewards than if you were to use them to get cash back or gift cards.\nThe advantage of this structure is that you always know exactly what your points or miles are worth, and you don't have to worry about running the numbers every time to determine whether you're getting a good redemption value.\nOn the flip side, when you have a flat redemption rate, there's no opportunity to maximize the value of your rewards.\n### Airline Miles and Hotel Points\nIf you have points or miles with a specific airline or hotel loyalty program, however, their value can fluctuate based on how you redeem them. You can typically get more value, for instance, if you use Delta SkyMiles to book a free flight instead of shopping for merchandise in the SkyMiles Marketplace.\nEven if you're booking a free flight or hotel stay, however, the value of your rewards currency can vary based on the current cash price of the booking and other factors.\nCredit card rewards websites will occasionally run the numbers to provide average values for each point or mile you'd earn with various rewards programs. As of November 2019, according to The Points Guy, Delta SkyMiles are worth, on average, 1.2 cents each, while American Airlines AAdvantage miles will net you 1.4 cents apiece.\nThis means that if you have 50,000 miles with both programs, your balance would be worth roughly $600 with Delta and $700 with American Airlines, according to those calculations.\nWith hotel rewards programs, the contrast can be stark. World of Hyatt points, for instance, are worth 1.7 cents apiece on average, while Hilton Honors points give you just 0.6 cents each. So if you have 50,000 points with both programs, they're worth $850 with one and $300 with the other.\nOf course, these are averages. The value of your points or miles can vary depending on when you book your free award flight or hotel stay, where you're headed, whether you're flying coach or first class, or if booking a higher-category hotel versus a lower one.\nThe benefit of having a dynamic pricing structure is that it provides opportunities to get much more than the average value for your rewards. For example, we found a business class flight on Delta from Salt Lake City to Vienna for 98,000 miles and $123.05 in taxes and fees. If you were to book a similar itinerary using cash, you'd pay $5,417.55. That gives your miles a value of 5.4 cents each, which is far more than the 1.2 cent average.\nNote: To calculate point or mile value, subtract the taxes and fees on the award ticket from the cash price, then divide the difference by the number of points or miles to book. In this case, subtract $123.05 from $5,417.55 to get $5,294.50. Then divide that number by 98,000 to get 0.054, or 5.4 cents.\nThat said, it's important to keep in mind that not all redemptions are above-average. If you're not careful, you could get subpar value from your points or miles. Also, rewards earned with airline or hotel rewards programs can lose value over time if the airline or hotel brand makes changes to its loyalty program. END
 TITLE: Credit Card Miles and Points: How Do They Work? CONTENT: With some credit cards, including the Chase Sapphire Reserve®, your points are worth 50% more (1.50 cents each) if you redeem them for travel through Chase Ultimate Rewards than if you were to use them to get cash back or gift cards. END
 TITLE: Credit Card Miles and Points: How Do They Work? CONTENT: How to Earn More Miles and Points on a Credit Card\n--------------------------------------------------\nCredit cards offer several opportunities to maximize the number of points or miles you're earning, regardless of which rewards program you have. Here are some ideas to consider.\n### Apply for a New Card\nMany credit cards offer big sign-up bonuses as an incentive for consumers to apply. For example, the Chase Sapphire Preferred® Card offers 100,000 bonus points after you spend $4,000 in the first 3 months—that's worth $1,250 in travel when booked through Chase Ultimate Rewards.\nThe Capital One Venture Rewards Credit Card offers 60,000 miles when you spend $3,000 in the first 3 months.\n### Use Your Card Whenever Possible\nIn addition to an intro offer, rewards credit cards also offer points or miles on every purchase you make. So plan to use your card whenever you can to rack up rewards quickly.\nKeep in mind, too, that some cards offer bonus rewards on certain spending categories. As you're looking for your next card, think about the areas where you spend the most and consider getting a card that offers extra points or miles on those purchases.\n### Use Other Methods\nIf you're looking to rack up miles with a specific airline or hotel loyalty program, you can also earn them in other ways. For example, some brands have online shopping portals that provide bonus miles on purchases with select retailers. Simply visit the airline or hotel shopping portal, click through to the retailer's website and make your purchase as usual.\nSome rewards programs also have dining rewards programs. With these, you simply register any credit or debit card and use it at one of the program's participating restaurants, and you'll get the promised rewards. You may even get bonus rewards for using the program more regularly. END
 TITLE: Credit Card Miles and Points: How Do They Work? CONTENT: Many credit cards offer big sign-up bonuses as an incentive for consumers to apply. For example, the Chase Sapphire Preferred® Card offers 100,000 bonus points after you spend $4,000 in the first 3 months—that's worth $1,250 in travel when booked through Chase Ultimate Rewards. END
 TITLE: Credit Card Miles and Points: How Do They Work? CONTENT: Use Credit Cards Responsibly to Improve Your Credit History\n-----------------------------------------------------------\nChasing points and miles isn't a bad thing, but it can backfire if you're not careful. It's always a good idea to avoid spending more than you can pay in full each month. Rewards are nice, but if you're paying interest, it'll likely neutralize their value.\nAlso, try to keep your balance relatively low. Your credit utilization rate—your balance divided by your credit limit—is an important factor in your credit scores, and it's best to keep it under 30% at all times.\nAs you use credit cards to earn points or miles, check your credit score regularly to make sure you're on track to building or maintaining a good or excellent credit history. Not only will a good credit score make it easier to get approved for more rewards credit cards in the future, but it can also save you money and provide peace of mind in so many other ways. END
 TITLE: How Travel Hacking With Credit Cards Affects Your Credit CONTENT: What Is Travel Hacking?\n-----------------------\nTravel hacking can be done in several ways, while always working within the rules set by credit card companies, airlines and hotel brands. With the right strategy, travel hacking can save you hundreds or even thousands of dollars when you take a trip.\nSome common travel hacking methods include:\n*   **Using multiple credit cards to maximize rewards and perks**: Many travel cards offer bonus rewards on certain spending categories, and you can get more than one card to maximize your rewards on more than one area of your budget. Also, general travel credit cards often don't offer things like free checked bags when you fly or hotel elite status, but they do provide more flexible redemption options. Having a general travel card, an airline card and a hotel card can mean you're well-covered for maximizing rewards on a variety of spending.\n*   **Signing up for new credit cards to earn a big intro bonus**: Many travel credit cards offer huge welcome bonuses worth hundreds of dollars or tens of thousands of points. If it's been a while since you opened your last credit card, getting a new one and earning the intro bonus could give you enough points or miles to cover a portion of your next trip.\n*   **Researching how to get the most value out of your rewards**: Certain credit cards offer varying values depending on how you use your points or miles.  \n    For example, with the Chase Sapphire Preferred® Card, you can get cash back at 1 cent per point, book travel through Chase Ultimate Rewards at 1.25 cents per point or transfer your rewards to one of the bank's airline or hotel partners and potentially get even more value.\n*   **Earning points and miles in unexpected ways**: Using credit cards isn't the only way to rack up rewards in a lot of airline and hotel rewards programs. You may also be able to earn points or miles by doing things like signing up for a dining program or an online shopping portal or by taking online surveys. Each program has its own set of ways you can earn extra points without spending money. END
 TITLE: How Travel Hacking With Credit Cards Affects Your Credit CONTENT: For example, with the Chase Sapphire Preferred® Card, you can get cash back at 1 cent per point, book travel through Chase Ultimate Rewards at 1.25 cents per point or transfer your rewards to one of the bank's airline or hotel partners and potentially get even more value. END
 TITLE: How Travel Hacking With Credit Cards Affects Your Credit CONTENT: Because travel hacking often includes the use of credit cards, there are a few ways it can affect your credit score. Whenever you're trying to maximize your rewards earnings, make sure you're paying attention to the terms and conditions set by your card issuer, and also using and applying for cards responsibly. END
 TITLE: How Travel Hacking With Credit Cards Affects Your Credit CONTENT: Monitor Your Credit to Maintain Its Health\n------------------------------------------\nIf you're thinking of getting into travel hacking, it's crucial that you check your credit score regularly to make sure you're not hurting it with your new strategy to save on travel.\nWith Experian's free credit monitoring service, you can get access to your Experian FICO® Score, as well as your Experian credit report. Additionally, you'll get real-time alerts when new changes are made to your report, such as new accounts, credit inquiries and more.\nAs you keep track of your credit, you'll have a better idea of how your actions are affecting your credit and how to address potential issues as they arise. END
 TITLE: What You Need to Know About the New FICO<sup>®<\/sup> 10 Scores CONTENT: What's Different About the New FICO® Scores?\n--------------------------------------------\nFair Isaac Corp., commonly known as FICO®, has built a new suite of scoring models that will be available from all three credit reporting agencies (Experian, TransUnion and Equifax) to lenders by the end of 2020. The new models will treat late payments and debt more severely, but will also now consider historical information about your credit card balances and payment amounts. Your FICO® Score will likely change as a result.\nThe FICO® Score 10 Suite, which includes the FICO® 10 Score and the FICO® 10 T Score, is the first redevelopment of the company's credit scores since 2014 when it released FICO® Score 9. And while new versions of credit scoring models tend to treat information similarly to prior versions, FICO® 10 includes several meaningful differences that are important for you to understand. END
 TITLE: What You Need to Know About the New FICO<sup>®<\/sup> 10 Scores CONTENT: FICO® 10 T Considers Trended Data for the First Time\n----------------------------------------------------\nThe FICO® Score 10 Suite will continue to consider the five main factors used in previous FICO® models to determine your FICO® Score: payment history, amounts owed, age of credit history, credit mix and new credit accounts.\nThe FICO® 10 T variant expands into new territory, however, with the goal of giving lenders a more precise assessment of your credit risk. FICO® 10 T does something that no other FICO® Score offered from Experian has ever done: It considers your trended data. Trended data, sometimes called time-series data, is information on your credit reports showing how you've managed your accounts over the previous 24 months, creating a picture of your financial situation during that time.\n> With the FICO® Score 10 Suite, the impact of late payments is more pronounced than with prior FICO® Score versions.\nRegarding credit card accounts appearing on your credit reports, the trended data includes your balances, minimum payment requirements and the amounts you paid on your most recent credit card statements going back 24 months. This allows the credit scoring model to differentiate consumers who pay their credit card debt in full each month (known as \"transactors\") from those who carry over, or \"revolve,\" a balance from month to month. Consumers who pay their credit cards in full each month are generally considered lower credit risks than those who revolve a balance from month to month.\nTrended data also allows a credit scoring model to determine whether you are reducing, maintaining or increasing your balances over time. These factors are considered by the newest scoring models because they help predict credit risk, which enables both consumers and lenders to make more responsible credit decisions.\n\"FICO® invested in the development of both FICO® 10 and 10 T rather than a single score in order to provide lenders with unparalleled flexibility to select which approach works best for them,\" says Ethan Dornhelm, vice president of scores and predictive analytics at FICO®.\nWhat does this mean to you? To make your trended data work for you and not against you, it will be more important than ever to pay your bills on time and pay down or, ideally, pay off your credit card balances well in advance of future credit applications. These trended payments will appear on your credit reports, and FICO® 10 T and VantageScore 4.0 will likely reward you for reducing your balances. Of course, you'll get the added benefit of saving money on interest fees as well. END
 TITLE: What You Need to Know About the New FICO<sup>®<\/sup> 10 Scores CONTENT: Delinquencies Will Hurt Scores More Under FICO® 10\n--------------------------------------------------\nDelinquencies on your credit reports occur when you miss payments on your credit obligations. Lenders generally report these late payments to the credit bureaus once you have gone at least 30 days past the due date. Late payments on your credit reports can lead to lower credit scores for many years, regardless of the scoring model or generation of credit score.\nWith the FICO® Score 10 Suite, the impact of late payments is more pronounced than with prior FICO® Score versions. This means consumers who miss payments are likely to experience a more severe drop in their credit scores under FICO® 10 than under previous FICO® scoring models.\nThe best way to avoid the impact of late payments is to make all your payments on time—no exceptions. Setting up autopay to send even just minimum payments ahead of the due date will go a long way toward keeping your scores in good shape (and you can always add a larger payment during the month as well). Staying current on your obligations is a great way to build and maintain solid credit scores, regardless of the scoring model. END
 TITLE: What You Need to Know About the New FICO<sup>®<\/sup> 10 Scores CONTENT: Credit Card Debt Will Have a Bigger Impact With FICO® 10\n--------------------------------------------------------\nOne of the most important metrics that credit scoring systems consider is the amount of your credit card balances compared with your credit limits. This is called \"credit utilization,\" and is calculated by dividing your credit card balances by your credit limits. For example, if you have $5,000 of credit card debt and $10,000 of total available credit, then your utilization is 50%. The lower that percentage, the better it is for all of your credit scores.\nWhile credit utilization has long been a component of credit scoring models, its impact will be more pronounced in FICO® 10.\nYou can achieve lower utilization in several ways. First, if you use credit cards sparingly and avoid large balances, your utilization will likely remain low. And if your credit card issuers increase your credit limits, your utilization percentage will go down—unless you charge larger amounts to those credit cards. Finally, if you leave your unused or infrequently used credit cards open rather than closing them, your scores will continue to benefit from the unused credit limit in the form of lower utilization. END
 TITLE: What You Need to Know About the New FICO<sup>®<\/sup> 10 Scores CONTENT: Personal Loans Might Lower Your FICO® 10 Score\n----------------------------------------------\nEarly reports about FICO® 10 revealed that personal loans would be treated differently than they were in prior FICO® versions, and that consumers might be penalized simply for having personal loans on their credit reports. This is a notable difference in how FICO® Scores have traditionally treated personal loan accounts.\nPersonal loans, sometimes called signature loans, are unsecured installment loans that are commonly used to pay off credit card debt. This process, called debt consolidation, involves taking out a personal loan for the purpose of paying off higher interest credit card debt.\nDebt consolidation has long been recognized as not only a smart financial move, since interest rates on personal loans can be much lower than those on credit cards, but also a smart credit score improvement strategy. When you convert revolving credit card debt to an installment loan, your credit scores may improve. Even under FICO® Score 10, this strategy is still a good idea if you're trying to eliminate expensive credit card debt.\n\"While there are certain high-risk consumer behaviors associated with the use of unsecured personal loans, there are also circumstances where a consumer's FICO® 10 and FICO® 10 T score can benefit from the presence of an unsecured loan,\" says Dornhelm.\nOne notable exception, however, is if you use those newly paid off credit cards to make new purchases—building up new balances while you're also paying off the consolidation loan. In this situation, your score will likely take a hit under FICO® 10. This emphasizes the importance of avoiding a scenario where you pay off or pay down credit card debt with a personal loan, but then get right back into credit card debt again. END
 TITLE: What You Need to Know About the New FICO<sup>®<\/sup> 10 Scores CONTENT: *   If you have a good credit report and good FICO® Scores already, you're likely to have an even higher score under FICO® 10. Consumers with good credit will tend to score higher under the newer scoring models.\n*   If you have poor FICO® Scores already, you're likely to have a lower score under FICO® 10. Consumers with poor credit tend to score lower under the newer scoring models.\n*   If your credit report at any of the credit reporting agencies does not qualify for a FICO® Score, your credit report will not qualify for a score under FICO® 10 either. Credit reports must meet a variety of minimum data standards to be considered \"scoreable\" under any of the FICO® credit scoring models. In early 2020, however, Experian will begin offering Experian Lift to lenders, which will help them to score a consumer with no traditional credit file. This could help more consumers qualify for credit products.\n*   The FICO® Score 10 range will be the same as previous versions of FICO® Scores: 300 to 850.\n*   If you use Experian Boost™† as a strategy to improve your FICO® and VantageScore credit scores at Experian, this will also continue to work with FICO® 10 and 10 T. END
 TITLE: What You Need to Know About the New FICO<sup>®<\/sup> 10 Scores CONTENT: The Bottom Line\n---------------\nWhen it comes to managing your credit to earn the highest scores possible, the traditional advice still works—but works better if slightly adjusted.\nNormally, consumers who pay their bills on time, maintain low credit card balances and apply for credit sparingly are well on their way to earning great credit scores. All of this is still true. However, because FICO® 10 T will now consider trended credit data and can see if you pay your credit card balances in full each month, it further underscores the importance of moving away from carrying balances on your cards.\nUltimately it will be up to lenders to decide when they will convert to the FICO® Score 10 Suite—or whether they will convert at all. If they do convert, the lender will get to choose whether they will use FICO® 10, FICO® 10 T or both models. END
 TITLE: 4 Types of Cards Everyone Should Have in Their Wallet CONTENT: No Annual Fee Cards\n-------------------\nThere are many different credit cards that don't carry an annual fee, and you should probably be carrying at least one of them. The great benefit to these cards is you can hold on to them for years without worrying about getting enough value to make up for a yearly charge.\nA credit card that has no annual fee can be key to building and maintaining a good credit history: The length of your credit history, including the age of your oldest account, is one of the five factors that help determine your FICO® Score☉ . In addition, keeping an annual fee card will give you more available credit, which can also help credit scores if you manage the card wisely and keep balances low.\nWithin the category of cards with no annual fee, you can choose a card based on your preferences. Maybe you choose a card that offers cash back, points or miles, or you opt for one with a low introductory or ongoing APR. Whatever you decide, the idea is to get a good card you can hold on to for the long haul. END
 TITLE: 4 Types of Cards Everyone Should Have in Their Wallet CONTENT: Hotel or Airline Card\n---------------------\nIf you're a travel buff, getting a co-branded credit card with your favorite airline or hotel brand can go a long way. You'll earn points or miles with every purchase, which can help pay for a weekend getaway trip or long-awaited family vacation. These cards don't always offer the best rewards rates, but they typically come with big sign-up bonus offers and valuable perks—and, your points and miles typically will not expire as long as you hold the card.\nFor example, a lot of airline cards offer free checked baggage and priority boarding, as well as statement credits for in-flight purchases and airport lounge access. Hotel cards usually come with complimentary elite status and a free night's stay every year.\nEven if you travel just a couple of times per year, travel credit cards including airline and hotel cards can often return as much or more value than they cost in the form of an annual fee. END
 TITLE: 4 Types of Cards Everyone Should Have in Their Wallet CONTENT: Cash Back Card\n--------------\nTravel rewards can be valuable, but there may be times when you'll want to simplify the rewards you earn with a strong cash back credit card. There are several cash back credit cards that offer standout rewards rates on everyday spending categories.\nYou can also decide which type of cash back card is right for you: One that earns extra rewards in rotating bonus categories or simpler versions that offer flat-rate rewards on purchases. Both are solid options—the choice comes down to how much time you want to devote to tracking your spending and extra rewards-earning categories.\nYou also may be eligible for a sign-up bonus with a cash back card, such as a cash payout for spending a certain amount in a number of months. What's more, many cash back cards don't charge an annual fee, so you can kill two birds with one stone. END
 TITLE: 4 Types of Cards Everyone Should Have in Their Wallet CONTENT: Transferable Rewards Card\n-------------------------\nIf you're looking for ways to maximize your rewards, credit cards that allow you to transfer your points to other loyalty programs offer a great way to do it.\nThese are the cards that earn American Express Membership Rewards, Capital One Venture or Spark Miles, Chase Ultimate Rewards and Citi ThankYou Points.\nAll of these rewards programs provide several redemption options, but your points or miles have a set value, such as 1 cent per point. If you want to maximize the value of your points or miles, you can transfer them to a partner airline or hotel rewards program, which has a dynamic pricing structure. With the right redemption, you can get several cents per point or mile in value.\nThis extra value and versatility make transferable rewards cards an excellent choice, especially for travel enthusiasts. END
 TITLE: 4 Types of Cards Everyone Should Have in Their Wallet CONTENT: Check Your Credit Before You Apply\n----------------------------------\nMost of the best credit cards on the market require good or excellent credit, which starts at a credit score of 670, according to FICO®. Check your credit score before you apply for a card to make sure you know where you stand.\nIf your score doesn't measure up, take some time to improve it before you apply. Also, if you plan on getting more than one credit card, space out your applications by six months or more. Each new credit inquiry can knock a few points off your credit score, but multiple credit card applications in a short period of time can have a negative compounding effect.\nOnce your credit is where you want it, take time to research your options and pick the cards that best fit your spending habits, lifestyle and credit score. There's no maximum number of credit cards you can hold, so rounding out the types of cards in your wallet can help provide you more options and perks—and could even help your credit score. Experian CreditMatch™ can help you sift through card offers and find out which ones you may be more likely to qualify for. END
 TITLE: Do You Need A Credit Card To Travel? CONTENT: Benefits of Traveling With a Credit Card\n----------------------------------------\nJust like carrying a card at home has its benefits, there are several reasons you may be happier carrying one while traveling.\n*   **Safety**: Carrying and using a credit card is a lot easier and safer than using cash, whether you are venturing abroad or traveling domestically. If your cash is lost or stolen, you can't do much beyond reporting it to the authorities. On the other hand, if your credit card is lost or stolen, you can quickly put a hold on your account and get a new card without having to worry about being held responsible for fraudulent charges. As a side note, this is also why it is often smarter to use a credit card than a debit card since credit card issuers can freeze certain charges. If someone uses your debit card to make a purchase, those funds come right from your bank account and you might have a much harder time getting your money back.\n*   **Ease of use**: While you might not have much trouble using cash while traveling domestically, you could have a harder time trying to use cash while making purchases abroad. Generally, you will have to exchange your cash for the local currency—potentially at an unfavorable rate and with fees attached. By contrast, many major credit cards are accepted very widely around the globe, so you don't have to worry about ducking into banks every now and then to exchange paper money.\n*   **Better exchange rate**: Speaking of exchanges, part of what makes credit cards beneficial to use when traveling internationally is that many offer better rates of exchange on purchases made in other currencies than you would get if you simply changed your cash at a bank or bureau. This is not always the case, but it's generally true if you are using a card in one of the major networks, such as Visa or Mastercard. Not only that, but some credit cards waive foreign transaction fees. These pesky surcharges usually run between 1% to 3% of your purchase total, which can add up to quite a bit of money depending on how much you are spending. Many of the best rewards credit cards, such as the Chase Sapphire Preferred® Card and Capital One Venture Rewards Credit Card don't charge these fees, making them excellent choices for international trips in particular.\n*   **Purchase and trip protections**: Among their lesser-known benefits, some credit cards extend both purchase protections and certain types of travel insurance when you use them to book your trip. For example, the Chase Sapphire Preferred® Card covers eligible new purchases made with your card for 120 days against damage or theft up to $500 per claim and $50,000 per account. So if you buy a great souvenir that is then damaged or stolen and is eligible for a claim, you may be able to get your money back. The card also offers a variety of travel protections, including insurance for when your baggage is delayed by over six hours of up to $100 per day for five days to buy replacement essential items like toiletries or clothing; and trip interruption and cancellation coverage of up to $10,000 per person and $20,000 per trip for prepaid, non-refundable travel expenses if your trip is cancelled or cut short due to covered situations. If you just used cash to pay for a trip, you wouldn't be able to take advantage of these potentially money-saving perks. END
 TITLE: Do You Need A Credit Card To Travel? CONTENT: Drawbacks of Using a Credit Card When Traveling\n-----------------------------------------------\nThere aren't many downsides to using a credit card when traveling, but there are a few things to be aware of.\n*   **Carrying identification**: Handing over cash for a purchase is straightforward enough in most settings. But if you want to use your credit card when traveling internationally, you might also have to bring your passport along as a form of identification, which can be inconvenient.\n*   **Needing a chip and\/or PIN card**: Credit cards with chips are becoming more widespread in the U.S., though many still have only an old-fashioned magnetic strip. In some other countries—especially in Europe—many credit card machines only work with chip cards and some of those also require a PIN to complete a transaction. All that might make using cash a lot easier. Before traveling to another country, read up on the credit card requirements and make sure you have one that will be usable.\n*   **Limited acceptance**: Although more credit cards are accepted in more places than ever before, every so often you might run up against an issue. A store where you want to buy something does not take Mastercard, for instance, or a restaurant does not accept American Express. If you are traveling somewhere remote, a merchant might also have issues connecting their credit card machine to the internet, which can slow you up or prevent you from making a purchase altogether. Chances are, though, anywhere you go will accept cold, hard cash.\n*   **Foreign transaction fees**: As mentioned above, some credit cards charge you a transaction fee for purchases you make when traveling abroad. Double-check your cards and make sure you carry at least one that waives such fees if you intend to take an international trip.\nWhat Types of Payment Should You Bring When Traveling?\n------------------------------------------------------\nWhile credit cards might be the best overall payment option when traveling, in reality, it's a good idea to carry a few different types of payment with you so that you have options. The ideal combination is to carry a main credit card that waives foreign transaction fees and offers solid purchase and travel protections for you to use the most during your trip. Also bring a backup card in a different network in case you run into any acceptance issues. For instance, if your main card is a Visa like the Chase Sapphire Reserve®, perhaps think about bringing a Mastercard. Just to be safe, you should always have some amount of cash on hand, whether in U.S. dollars or your destination's currency. Stock up on some before you leave home. Finally, bring your debit card along in case you need to pull more cash out of an ATM for last-minute needs.\nIt's also a smart idea to keep your backup credit card and your debit card in a separate place from your main credit card. That way, if your primary card is lost or stolen, you will still have other ways to pay for what you need. If you are staying at a hotel, consider leaving your extra cards in the room safe while you are out and about. END
 TITLE: Do You Need A Credit Card To Travel? CONTENT: What Types of Payment Should You Bring When Traveling?\n------------------------------------------------------\nWhile credit cards might be the best overall payment option when traveling, in reality, it's a good idea to carry a few different types of payment with you so that you have options. The ideal combination is to carry a main credit card that waives foreign transaction fees and offers solid purchase and travel protections for you to use the most during your trip. Also bring a backup card in a different network in case you run into any acceptance issues. For instance, if your main card is a Visa like the Chase Sapphire Reserve®, perhaps think about bringing a Mastercard. Just to be safe, you should always have some amount of cash on hand, whether in U.S. dollars or your destination's currency. Stock up on some before you leave home. Finally, bring your debit card along in case you need to pull more cash out of an ATM for last-minute needs. END
 TITLE: Do You Need A Credit Card To Travel? CONTENT: Make Sure to Set a Travel Notice\n--------------------------------\nEven if you travel frequently, it is advisable to notify your credit card company that you plan to take a trip, especially if you will be going abroad. That reduces the likelihood your account will be flagged for potential fraud when you use it to make purchases. Setting a travel notice is usually pretty simple. Many credit card companies let you do so by logging in to your account online or via their app and following a few simple steps including listing your destinations and dates of travel. With Chase, for example, you can set a travel notification up to a year in advance that lasts 90 days. END
 TITLE: Do You Need A Credit Card To Travel? CONTENT: Things to Consider Before Choosing a Travel Card\n------------------------------------------------\nThere are a few final factors to keep in mind when choosing a credit card to take with you when traveling.\n**Your credit score**: If you are applying for a new card, make sure your credit score falls within the typical range of accepted applications. Many premium rewards cards require you to have a score in the good-to-excellent range. If you need to improve your score before applying for the card you want, using Experian Boost™† may help you accomplish that.\n**Acceptance**: Before opening a new card or sticking it in your wallet as you depart on your trip, do some research and make sure you will be able to use it where you are traveling. For instance, if you find out that most merchants where you'll be traveling only accept cards with chips, make sure one of yours has a chip. Or if you read that American Express is not as widely accepted where you are going, be sure to bring a Visa or Mastercard along too.\n**Foreign transaction fees**: It cannot be said enough—if you plan to travel abroad and use a credit card in another country, be sure it is one that waives foreign transaction fees so you are not charged extra on your purchases. Foreign transaction fees will otherwise be charged to every purchase you make while outside the U.S., which can really add up.\n**Protections**: If you plan to use your credit card to pay for your travel or other major purchases, make sure you are using one that provides robust protections in case your items are stolen or damaged and insurance against things like travel delays, lost luggage and car rentals.\n**Rewards**: Finally, consider getting a card that earns rewards points or miles on the purchases you are going to make. Several airline credit cards offer bonus miles on airfare purchases and at other locations such as hotels, restaurants and supermarkets, while some hotel credit cards earn bonus points when you use them to book stays as well as for things like gas purchases and rental cars. Read up on the earning potential of any credit cards you are thinking of opening or using when traveling to make sure you pick one whose benefits you can maximize.\nAlthough it might not be strictly necessary to carry a credit card when traveling, you might want to do so for several reasons. Many rewards cards waive foreign transaction fees and provide better exchange rates on purchases you make abroad. Some travel credit cards also offer extensive purchase and travel protections that can save you time and money when things go wrong. Finally, carrying a credit card is usually a safer way to travel than bringing along a lot of cash, which can potentially be lost or stolen. You can find current credit card offers and personalized picks through Experian CreditMatchTM. END
 TITLE: Benefits to Look for in an Airline Credit Card CONTENT: A High Welcome Offer\n--------------------\nz\nMany airline credit cards provide what are known as welcome offers or sign-up bonuses. These introductory deals are sometimes worth tens of thousands of points or miles that new cardholders can earn by making a certain number of purchases within a set period of time.\nSome airline credit cards also waive their annual fees for the first year. That means new cardholders can open an account and enjoy the card and its benefits for the first year without having to pay an annual fee to do so.\nIn general, look for the most generous welcome offer you'd be able to meet without having to spend more than you already do. That means not stretching your finances to meet the spending requirement by making purchases you would not under other circumstances. If you do build up a balance, try to pay it off on time and in full every month. Otherwise, you might incur interest payments and late fees that wipe out any value you receive from the miles you earn with your new card. END
 TITLE: Benefits to Look for in an Airline Credit Card CONTENT: Bonus Earning Categories\n------------------------\nMany airline credit cards earn 1 mile or point per dollar on most everyday purchases. However, a lot of them now earn multiple points or miles per dollar both on airfare with the partner airline and on purchases in specific merchant categories, such as grocery stores or gas stations. For instance, the United℠ Explorer Card earns 1 United MileagePlus mile per dollar on most purchases, but earns 2 miles per dollar on selected United purchases (including tickets, but also things like in-flight food and beverages), at restaurants and on hotel accommodations purchased directly with the hotel. Look for an airline credit card that offers bonus opportunities on the kinds of things you tend to spend the most money on to supercharge your earning even more. END
 TITLE: Benefits to Look for in an Airline Credit Card CONTENT: Anniversary Benefits\n--------------------\nSome airline credit cards reward you for hanging on to your card (and paying the annual fee) each year with things like bonus miles or companion travel certificates. Perks like these can be worth hundreds of dollars and make it worthwhile to keep a card year after year. Every year after their account anniversary, the JetBlue Plus Card rewards cardholders with both 5,000 bonus points and a $100 statement credit after purchasing a JetBlue Vacations Package of $100 or more. For its part, upon renewal, the Delta SkyMiles® Platinum American Express Card gives cardholders a companion certificate to use toward one domestic round-trip itinerary in Main Cabin (plus taxes) each year. Terms apply. END
 TITLE: Benefits to Look for in an Airline Credit Card CONTENT: Day-of-Travel Benefits\n----------------------\nMany airline credit cards advertise day-of-travel perks that can add up to hundreds, or even thousands, of dollars in value each year depending on how often you use them. For example, the Delta SkyMiles® Gold American Express Card allows cardholders to check a bag for themselves and up to eight companions on the same reservation when traveling on Delta, which is worth $30 per bag in each direction. If you maxed it out with nine people on a round-trip reservation, that would equal $540 in value. Plus, cardholders and up to eight companions on the same reservation receive priority boarding in the Main Cabin 1 group on Delta flights ahead of many other travelers in coach. Finally, cardholders receive 20% back in the form of a statement credit for eligible Delta in-flight purchases of food, beverages and audio headsets. Depending on how much you buy on board, this can save you a lot of money. Terms apply.\nAt the higher end (and with much higher annual fees), several airlines offer credit cards whose benefits include access or membership to their airport lounges. For its part, the Delta SkyMiles® Reserve American Express Card gets cardholders into Delta's Sky Clubs and American Express Centurion Lounges when traveling on a same-day Delta-marketed or Delta-operated flight.\nSome cards offer a perk that's not specific to their partner airline, but is still worth exploring. The United℠ Explorer Card and the Delta SkyMiles® Platinum American Express Card, for example, offer cardholders a statement credit worth up to $100 for either a Global Entry or TSA Precheck application fee every four years (4.5 years for TSA Precheck with the Delta SkyMiles® Platinum American Express Card). Participating in either program can save you precious time at the airport by allowing you to access expedited security screening lanes and, in the case of Global Entry, faster processing at customs and immigration when entering the U.S. END
 TITLE: Benefits to Look for in an Airline Credit Card CONTENT: At the higher end (and with much higher annual fees), several airlines offer credit cards whose benefits include access or membership to their airport lounges. For its part, the Delta SkyMiles® Reserve American Express Card gets cardholders into Delta's Sky Clubs and American Express Centurion Lounges when traveling on a same-day Delta-marketed or Delta-operated flight. END
 TITLE: Benefits to Look for in an Airline Credit Card CONTENT: Travel Protections and Savings\n------------------------------\nIf you are a frequent international traveler, try to pick an airline credit card that waives foreign transaction fees. These pesky charges usually amount to between 1% to 3% of any charges you make while abroad and can really add up over the course of a trip.\nBeyond simply saving you money, though, some of the best airline credit cards offer comprehensive protections when you use them to pay for a trip. Among the best of them, the United℠ Explorer Card includes lost luggage reimbursement of up to $3,000 per passenger if your bag is lost or stolen, and baggage delay coverage of up to $100 per day for three days if your bag is delayed six hours or more and you have to purchase essential things like replacement clothing or toiletries. Even more impressive, the card offers reimbursement of up to $1,500 per person and $6,000 per trip on non-refundable, prepaid fare costs if you have to cancel or interrupt your plans due to covered situations like sickness or injury. It also offers primary insurance on rental cars, so you don't have to purchase a policy through the rental agency or rely on your own personal car insurance to cover you when things go wrong on the road. END
 TITLE: Benefits to Look for in an Airline Credit Card CONTENT: Find the Right Airline Card for You\n-----------------------------------\nAirline credit cards are great for racking up frequent-flier miles to redeem for award tickets. But many come with other great value-added perks like free checked bags, priority boarding and travel protections that can save you time, money and hassles both up in the air and on the ground. If you are thinking about opening an airline credit card, make sure you get one with a welcome offer and earning potential that fits your spending habits, and with travel benefits you will be able to maximize on an airline you fly frequently. For more information on travel credit cards and to see current offers, you can pull up personalized options through Experian CreditMatchTM.\n_All information about the United℠ Explorer Card and Delta Skymiles Reserve has been collected independently by Experian and has not been reviewed or provided by the issuer of the card._ END
 TITLE: How to Apply for TSA Precheck CONTENT: Here are the steps to apply for TSA Precheck and a few other things to keep in mind:\n1.  Apply online. First, you must submit an online application that will allow the TSA to perform a background check based on the information you provide, including the location and date of your birth, your current address, your physical characteristics and any criminal history. The whole process should only take a matter of minutes. Once the TSA reviews your application and decides to approve you, it will be conditional until you complete the other steps in this process. It may take several days to get an answer, but you can check the status of your application online.\n2.  Schedule an enrollment center interview. Once you are conditionally approved, you will need to schedule an appointment at an enrollment center. There are over 380 enrollment centers around the country. You can find the ones closest to you by entering your city, ZIP code or closest airport. This will also pull up available interview time slots in the next 45 days. Pick a location and time that work for you.\n3.  Prepare your identification documents. Before your interview, you will need to gather some forms of TSA-approved identification. These can include a valid U.S. passport, a permanent resident card or a valid driver's license from a U.S. state among other documents. If you show up to your interview without the necessary paperwork, you may not be approved.\n4.  Interview in person. Bring your documents and arrive early to your interview. A TSA agent will ask you questions to verify your identity and application details. The interview should only take around 10 minutes. You will also have to pay the $85 application fee at this point. To do so, you can use a credit card, debit card, money order, certified or cashier's check, or company check.\n5.  Wait for approval. Most applicants are notified of their status shortly after their interview, but it can take up to several weeks to receive written notification. You can check your status online and, if approved, find your Known Traveler Number at that point.\n6.  Register with airlines. Even if you are approved for TSA Precheck and receive a Known Traveler Number, you do not immediately get access to TSA Precheck lanes when traveling. You need to log in to your frequent-flier accounts with various airlines and add your Known Traveler Number to your profile for it to register when you travel and for the TSA Precheck logo to appear on your boarding passes. If you forget to do so, you can always ask a check-in agent at the airport to add your Known Traveler Number to your reservation while traveling.\n7.  Renew every five years: TSA Precheck membership lasts five years, but you can renew your membership online up to six months before your current TSA Precheck status expires so your eligibility isn't interrupted. Usually, all you need is your Known Traveler Number, name and date of birth; you'll also need to pay the $85 application fee. Some members may be required to conduct another in-person interview at an enrollment center. END
 TITLE: How to Apply for TSA Precheck CONTENT: Some Credit Cards Refund the Precheck Application Fee\n-----------------------------------------------------\nTSA Precheck costs $85 each time you apply, whether or not you are approved. The good news: There are plenty of ways to avoid paying full price for the program.\nMany travel rewards credit cards now offer statement credits toward the cost of TSA Precheck applications once every four or five years. When you use your eligible card to pay for your application, you will usually see the charge deducted from your statement in the form of an $85 credit. This can take up to a few billing cycles to occur, but it tends to appear almost immediately after you make the initial charge.\nAmong the credit cards that offer this benefit once every four years are the popular Chase Sapphire Reserve®, the Capital One Venture Rewards Credit Card and the Bank of America® Premium Rewards® credit card. END
 TITLE: How to Get Started With Travel Rewards Credit Cards CONTENT: What Kinds of Credit Cards Earn Travel Rewards?\n-----------------------------------------------\nTravel credit cards come in four main varieties. When getting started with rewards credit cards and putting together your travel plan, think about the type of points or miles you can get the most use out of and then pick a card that earns them.\n1.  1.  Airline credit cards: This is probably the type of travel rewards credit card most people think of first. Airlines have frequent-flier programs travelers can use to earn miles when they fly, as well as when doing things like making hotel reservations or car rentals with partner companies. Airlines also partner with banks to issue what are called co-branded credit cards. These cards not only earn frequent-flier miles on everyday purchases, but some also offer benefits like free checked bags and priority boarding.\n    2.  Hotel credit cards: Like airlines, hotels have loyalty programs and may partner up with banks to offer their members co-branded credit cards. These cards earn points as well and offer benefits like annual reward nights and automatic elite status, which in turn includes perks such as room upgrades and free Wi-Fi during stays.\n    *   Cash back credit cards: Some rewards credit cards earn cash back that cardholders can redeem for statement credits to lower their monthly bill. Certain cash back rewards cards offer a better rate of return specifically on travel, though. For example, the Capital One Venture Rewards Credit Card earns 2 miles per dollar spent on all eligible purchases. Those miles are worth 1 cent apiece when redeemed against travel charges, but may lose value if redeemed as statement credits for purchases in other categories. Still, if you're looking for a cash-back card for travel in particular, 2 cents back is a great rate of return.\n*   Transferable points cards: The final family of travel rewards cards earn what are known as transferable points that you can transfer to a number of different airline and hotel partners. One example is the Chase Sapphire Reserve® card. It earns 3 Chase Ultimate Rewards points per dollar spent on travel and dining and 1 per dollar spent on other eligible purchases. Chase Ultimate Rewards points transfer to 13 partners including airline programs like JetBlue TrueBlue and United MileagePlus as well as hotel programs such as World of Hyatt and Marriott Bonvoy. If you're not loyal to a particular airline or hotel, earning transferable points can be a great way to rack up rewards in a single loyalty program account and then transferring them to your choice of airline or hotel when you need them. END
 TITLE: How to Get Started With Travel Rewards Credit Cards CONTENT: *   Cash back credit cards: Some rewards credit cards earn cash back that cardholders can redeem for statement credits to lower their monthly bill. Certain cash back rewards cards offer a better rate of return specifically on travel, though. For example, the Capital One Venture Rewards Credit Card earns 2 miles per dollar spent on all eligible purchases. Those miles are worth 1 cent apiece when redeemed against travel charges, but may lose value if redeemed as statement credits for purchases in other categories. Still, if you're looking for a cash-back card for travel in particular, 2 cents back is a great rate of return. END
 TITLE: How to Get Started With Travel Rewards Credit Cards CONTENT: *   Transferable points cards: The final family of travel rewards cards earn what are known as transferable points that you can transfer to a number of different airline and hotel partners. One example is the Chase Sapphire Reserve® card. It earns 3 Chase Ultimate Rewards points per dollar spent on travel and dining and 1 per dollar spent on other eligible purchases. Chase Ultimate Rewards points transfer to 13 partners including airline programs like JetBlue TrueBlue and United MileagePlus as well as hotel programs such as World of Hyatt and Marriott Bonvoy. If you're not loyal to a particular airline or hotel, earning transferable points can be a great way to rack up rewards in a single loyalty program account and then transferring them to your choice of airline or hotel when you need them. END
 TITLE: How to Get Started With Travel Rewards Credit Cards CONTENT: How Do You Pick a Travel Rewards Credit Card?\n---------------------------------------------\nNot only are there four major categories of travel rewards cards out there, but there are dozens of individual products to choose from. Here are the factors you should consider when picking the right travel credit card for your needs.\n1.  Make sure you can use the points or miles. First things first—you should choose a travel rewards credit card that earns the types of points or miles you will actually be able to use. After all, if you never fly United, why would you want one of its credit cards? Or if you tend to book at Hilton properties, you should get one of their credit cards and not one from Marriott so you can maximize your points earning during stays.\n2.  Get a card with benefits you will use. By the same token as the previous point, think about whether you will actually use the other perks a rewards card offers. To take an example from above, Chase Sapphire Reserve® cardholders are eligible for up to $300 in statement credits each year toward travel purchases and can register for Priority Pass Select membership for access to over 1,200 airport lounges around the world. But if you don't travel enough to take advantage of these perks, the card's $550 annual fee may not be worth it.\n3.  Focus on bonus categories. While many travel rewards credit cards earn 1 point or mile per dollar on most spending, a lot of them earn multiple points or miles per dollar on specific types of purchases, such as at restaurants, grocery stores, or gas stations. For example, the Delta SkyMiles® Platinum American Express Card earns 3 miles per dollar spent on Delta purchases and those made directly with hotels, 2 miles per dollar at restaurants and U.S. supermarkets, and 1 mile per dollar on other eligible purchases. So if you spend a lot on those things—Delta tickets, hotel bookings, groceries and dining out—then you could really start racking up rewards quickly. However, if you tend to spend more on things like car rentals and gas, this card's earning potential will not benefit you as much. Terms apply.\n4.  Can you handle the annual fee? Many of the top travel rewards credit cards charge a fee each year to keep your account open. First, make sure you can afford the annual fee year after year. Second, think about whether you are reaping enough value from your card's benefits to justify paying that fee.\n5.  Consider your credit. There are rewards credit cards for every type of customer, but you should understand the requirements of any specific card before you apply. The most premium travel cards generally require applicants to have excellent credit—such as The Platinum Card® from American Express, a card that provides a lot of valuable benefits (at the expense of a high annual fee). This card is not a traditional credit card, however, and you may only be able to carry a balance with certain charges. At the other end of the spectrum are cards with fewer perks and lower annual fees (or no annual fees at all). These are typically geared toward folks just starting out with credit who might need time to build their credit history and raise their credit score. You can monitor your credit for free through Experian and use Experian CreditMatch™ to find cards that fit your unique credit profile. END
 TITLE: How to Get Started With Travel Rewards Credit Cards CONTENT: When to Apply for a Travel Rewards Credit Card\n----------------------------------------------\nNow that you have narrowed down the choices and settled on one or two travel rewards credit cards, you need to pick the right time to apply. Your decision will likely be influenced by the following factors:\n1.  A high welcome offer: Many credit cards offer approved applicants the opportunity to earn tens of thousands of bonus points or miles by meeting certain spending requirements within the first few months. However, these offers can change from time. For example, the American Express Gold® Card, another card that may only let you carry a balance for certain charges, is currently offering new cardholders up to 60,000 Membership Rewards points after they spend $4,000 on eligible purchases within the first 6 months of card membership. Applying for a card when its introductory offer is higher than usual can net you tens of thousands of extra points.\n2.  Annual fee waived the first year: Sometimes, as part of the introductory package, travel credit cards offer to waive their annual fees for the first year. For example, the Delta SkyMiles® Gold American Express Card is currently waiving its $99 annual fee for the first year. That means you can apply for the card and carry it for a year enjoying its benefits before you have to pay an annual fee to do so. Terms apply.\n3.  Low or 0% intro APR: Some credit cards offer an introductory 0% annual percentage rate (APR) on balances and balance transfers from other cards for a several months after you open your account.  \n    For example, the Chase Freedom Unlimited® is currently offering new cardholders 0% intro APR on purchases for the first 15 months, after which the card's standard APR of 14.99% to 23.74% (variable) kicks in.\n    While you should always consider how carrying a balance can affect your credit in terms of your credit utilization, avoiding interest charges for short periods can be not only convenient, but extremely useful if your financial circumstances have recently changed.\n4.  Whether you can pay off your balance in full every month: The final, and perhaps most important, rule for applying for and using travel rewards credit cards is to do everything possible to pay off your balance on time and in full every month. Doing so will keep your credit in good standing and even help raise your score over time. Carrying a balance can not only lower your credit score, the interest and late fees you rack up can wipe out the value from any points or miles you earn with your card. END
 TITLE: How to Get Started With Travel Rewards Credit Cards CONTENT: For example, the Chase Freedom Unlimited® is currently offering new cardholders 0% intro APR on purchases for the first 15 months, after which the card's standard APR of 14.99% to 23.74% (variable) kicks in. END
 TITLE: How to Get Started With Travel Rewards Credit Cards CONTENT: Travel Rewards Credit Cards to Consider Now\n-------------------------------------------\nYou've looked over your options, winnowed them down to a few choices, and made sure that they all fit within your overall financial plan. Now it's time to apply for the right travel rewards credit card. Here are some options currently available with some great introductory offers.\n**Chase Sapphire Preferred® Card**: Earn 100,000 Chase Ultimate Rewards points after you spend $4,000 on purchases within the first 3 months of account opening. Those points are worth $1,000 when redeemed for travel. Earn 3 points per dollar spent on dining, 2 points per dollar spent on travel and 1 point per dollar on all other purchases, plus 5 points per dollar on Lyft rides through March 2022. The card's annual fee is $95.\n**Capital One Venture Rewards Credit Card**: Earn 60,000 bonus miles after you spend $3,000 in purchases within the first 3 months of account opening. Earn an unlimited 2 miles per dollar on every purchase. Receive a Global Entry or TSA Precheck application fee statement credit of up to $100 once every four years.\n**Hilton Honors American Express Surpass® Card**: For a limited time, earn 130,000 Hilton Honors bonus points with the Hilton Honors American Express Surpass® Card after you use your new card to make $2,000 in eligible purchases within the first 3 months of card membership. Plus, you can earn an additional 50,000 Hilton Honors bonus points after you spend a total of $10,000 in purchases on the card in the first 6 months. The annual fee is $95. Earn 12 bonus points per dollar on eligible charges directly with a Hilton hotel or resort; 6 points per dollar at U.S. restaurants, U.S. supermarkets and U.S. gas stations; and 3 points per dollar on other eligible purchases. Terms apply.\n**Delta SkyMiles® Gold American Express Card**: For a limited time, earn 70,000 bonus miles after you spend $2,000 in purchases on your new card in your first 3 months. Offer expires 11\/10\/2021. The card earns 2 miles per dollar on Delta purchases, at restaurants worldwide including takeout and delivery and at U.S. supermarkets, then 1 mile per dollar on other eligible purchases. Its $99 annual fee is waived the first year.\nReady for Takeoff\n-----------------\nTravel rewards credit cards can be a great way to rack up the points, miles or cash back you need to take the trips you want. When getting started with travel rewards credit cards, think about the types of points or miles you can use and whether you will be able to take advantage of the benefits of a specific card. Then be sure you can handle any spending requirements or annual fees, and can responsibly pay your balances off each month so that you get the full value from any rewards you earn. Use Experian CreditMatch™ to find out if you're matched to these cards with just a few simple clicks.\n_All information about the Citi® \/ AAdvantage® Platinum Select® World Elite Mastercard® has been collected independently by Experian and has not been reviewed or provided by the issuer of the card._ END
 TITLE: How to Get Started With Travel Rewards Credit Cards CONTENT: **Chase Sapphire Preferred® Card**: Earn 100,000 Chase Ultimate Rewards points after you spend $4,000 on purchases within the first 3 months of account opening. Those points are worth $1,000 when redeemed for travel. Earn 3 points per dollar spent on dining, 2 points per dollar spent on travel and 1 point per dollar on all other purchases, plus 5 points per dollar on Lyft rides through March 2022. The card's annual fee is $95. END
 TITLE: How to Get Started With Travel Rewards Credit Cards CONTENT: **Capital One Venture Rewards Credit Card**: Earn 60,000 bonus miles after you spend $3,000 in purchases within the first 3 months of account opening. Earn an unlimited 2 miles per dollar on every purchase. Receive a Global Entry or TSA Precheck application fee statement credit of up to $100 once every four years. END
 TITLE: How to Get Started With Travel Rewards Credit Cards CONTENT: Ready for Takeoff\n-----------------\nTravel rewards credit cards can be a great way to rack up the points, miles or cash back you need to take the trips you want. When getting started with travel rewards credit cards, think about the types of points or miles you can use and whether you will be able to take advantage of the benefits of a specific card. Then be sure you can handle any spending requirements or annual fees, and can responsibly pay your balances off each month so that you get the full value from any rewards you earn. Use Experian CreditMatch™ to find out if you're matched to these cards with just a few simple clicks. END
 TITLE: Vacationing With Points: When to Redeem Points and When to Pay Cash CONTENT: What Kinds of Points or Miles Do You Have?\n------------------------------------------\nThe first thing you need to consider is what kind of points or miles you'd be using for your trip. There are four major types:\n1.  Airline miles: Everyone is probably familiar with frequent-flier miles that you can earn and redeem for flights with one particular airline or its partners. For example, you can earn and redeem American Airlines AAdvantage miles for flying with the airline or one of its many partners, including British Airways, Cathay Pacific and Qantas.\n2.  Hotel points: Like airlines, hotels have their own loyalty programs with points you can earn and redeem at a variety of brands. For example, Marriott comprises 30 brands such as Westin, Courtyard and Ritz-Carlton. Hilton's portfolio includes almost 20 brands including Embassy Suites, DoubleTree and Waldorf Astoria. So travelers could earn Marriott Bonvoy points staying at Westins and then redeem them at a Courtyard location, or earn Hilton Honors points staying at a DoubleTree and then use them for an award night at a Waldorf Astoria.\n3.  Cash back points or miles: These are earned with certain credit cards, such as the Chase Freedom Unlimited® (points) or the Capital One Venture Rewards Credit Card (miles). With cards like these, your points or miles are generally worth a fixed value when redeeming them for travel—usually around 1 cent each. Cash back points are valuable because you don't have to worry about special awards opening up on flights or at hotels in order to redeem them. Cashing them in is basically just like paying with cash, so they give you a lot of flexibility when it comes time to use them.\n4.  Transferable points: Certain credit card issuers have their own loyalty programs where cardholders earn points that they can then transfer to a number of different airline or hotel partner programs. For instance, the Ultimate Rewards points that Chase Sapphire Reserve® cardholders earn can be transferred to 13 airline and hotel partners including Southwest, United and Marriott, among others. This gives cardholders the flexibility to use their points with many airlines or hotels for rewards as they come up rather than having to be locked into a single carrier or chain. Often, transferable points can also be redeemed directly through an issuer's own travel site for things like flight and hotels at fixed rates, sort of like cash back points. That makes transferable points even more versatile.\nOnce you have sorted out the types of points or miles you have and can use, your next question will be: How much value should I get from them? END
 TITLE: Vacationing With Points: When to Redeem Points and When to Pay Cash CONTENT: How Much Are Your Points Worth?\n-------------------------------\nThis is a tricky question because the value of points and miles—even the cash back kind—can vary depending on a lot of different factors. Pricing within the travel industry, including airfares and hotel rates, is also somewhat erratic for the time being due to COVID 19-related concerns and issues. So before redeeming any points or miles, be sure to price out your options to make sure you are getting enough value from them to make sense for your needs.\n1.  It depends on the charge. The value of your points might come down to the types of purchases for which you redeem them. For example, the miles you earn with the Capital One Venture Rewards Credit Card are worth 1 cent apiece when redeemed for travel, either for a reservation you make directly through the Capital One travel site, or to \"erase\" a previous travel charge on your billing statement. But if you redeem your Capital One miles as cash back for another type of purchase, like a dinner out, you may only get half a cent per mile in value. Read up on the benefits of your specific loyalty program and make sure you are only redeeming points for the best possible value.\n2.  It depends on your credit card. Even points from the same loyalty program can have a different value based on which specific credit card you carry. Make sure you know the benefits of your particular product before redeeming any points you earn with it.\n3.  It depends on your destination. In terms of airline miles, your value can vary a lot depending on how you redeem them. For example, you might use 75,000 Delta SkyMiles for a one-way ticket from the U.S. to Europe that could cost upwards of $5,000, giving you a per-mile value of nearly 6.7 cents. On the other hand, your Delta SkyMiles would only be worth about 1.2 cents each if you redeemed 4,500 of them for a one-way flight between Los Angeles and San Francisco that would otherwise cost $53. So think about the ways you might want to use your miles and what redemptions are likely to reap the most value.\n4.  It depends on which hotels you book. Finally, the value of your hotel points will depend very much on the specific program in which you earn them. With World of Hyatt, for example, you can book award nights at many of the chain's high-end luxury hotels, such as the Park Hyatt New York, for 30,000 points each instead of paying rates that tend to run over $800. However, for a room at the Grand Wailea Maui, a Waldorf Astoria Resort, which is also often over $800 per night, you would need a whopping 95,000 Hilton Honors points (though reward rates can actually be much higher). So if you hope to use points with a specific hotel program, try making sample bookings and get a feel for how many points you will need for the destinations where you want to travel.\nOnce you get a sense of how many points or miles you're looking at redeeming for a specific trip, it's time to figure out whether doing so is worth it. END
 TITLE: Vacationing With Points: When to Redeem Points and When to Pay Cash CONTENT: How to Calculate the Value You'll Get From Your Points\n------------------------------------------------------\nAfter you get a grasp of how much each point or mile you redeem is worth, you will need to do a little math to make sure you're getting at least that value back from your redemption. There is an easy way to do this. Basically, you take the dollar cost of your ticket, room rate or whatever else you are redeeming miles for, then you divide it by the total number of points or miles you would need to redeem for it.\nFor instance, let's say you want to book a round-trip economy flight from Boston to San Francisco. If a ticket paid in cash costs $300 and an award ticket costs 25,000 miles, you'd take $300 and divide it by 25,000 to get a per-mile value of 1.2 cents. Not bad. END
 TITLE: Vacationing With Points: When to Redeem Points and When to Pay Cash CONTENT: How to Tell if You're Getting a Good Deal\n-----------------------------------------\nAlthough it's difficult to generalize, there are a few guidelines to follow that should help you get a good value from your points and miles.\n1.  Airline miles: Your per-mile value can vary from airline to airline. In general, though, you should be getting at least 1 cent per mile in value that you redeem with a frequent-flier program. If it's less than that, you're better off paying cash.\n2.  Hotel points: This also varies a lot, but you should typically get at least half a cent per point in value from most of the major hotel programs, like Hilton, IHG Rewards and Marriott. With Hyatt, look for a value of around 1.5 cents per point.\n3.  Transferable and cash back points: This is a little easier to stick to since cash back points and transferable points you opt to redeem directly for travel tend to have an exact value. As mentioned above, Capital One Rewards Miles are worth 1 cent apiece for travel. Chase Ultimate Rewards points are worth between 1 cent and 1.5 cents each for travel depending on your credit card. As long as you are getting that, you should be good to go. END
 TITLE: Vacationing With Points: When to Redeem Points and When to Pay Cash CONTENT: Time to Choose the Points or Miles You Use\n------------------------------------------\nBut what happens if you have a choice of points or miles to use? Let's say you have both American Airlines miles and Chase Ultimate Rewards points to redeem for travel. How do you decide which type to cash in? You will just need to calculate the per-point value for the specific airline or hotel program versus the per-point value for your cash back program and see which one comes out on top. This usually works out in the following way:\n**Cheap flights and nights**: If your flights or hotel bookings are inexpensive, you will generally get a better value from your cash back points. For instance, let's say you booked a round-trip flight from Los Angeles to Seattle over the summer. Airfares on Alaska Airlines are around $117, or 20,000 Alaska miles. That works out to around 0.59 cents per mile in value. However, if you have the Capital One Venture Rewards Credit Card, you would only need to redeem 11,700 Capital One Rewards Miles for the same itinerary if you use the card to book through Alaska and use points to \"erase\" that purchase. That's because Capital One Rewards Miles are worth 1 cent apiece for travel, which is a much better deal in this instance. Generally speaking, if you are getting less than a cent per airline mile or hotel point in value, you will be better off redeeming cash back points.\n**Expensive flights and nights**: On the other hand, even though they require tens of thousands of miles or points, some very premium rewards including first-class flights and award nights at luxury hotels, usually yield a much better value than simply redeeming cash back points. To take one of the examples above, a $5,000 business-class ticket to Europe that would cost just 75,000 Delta SkyMiles plus under $100 in taxes and fees would require you to redeem an astounding 500,000 Capital One Rewards Miles. No thank you!\nFor the most part, try to redeem your airline miles and hotel points for otherwise expensive rewards, and save those cash back points for cheap flights and nights. END
 TITLE: Vacationing With Points: When to Redeem Points and When to Pay Cash CONTENT: It Might Make Sense to Just Pay Cash\n------------------------------------\nWith all that said, there are still some times when it just makes sense to pay cash.\n1.  Cheap deals: For the most part, if you are getting a great deal on a flight, stay or package, it is usually easier just to pay for it rather than trying to redeem airline miles, hotel points, cash back or a combination of all three. Chances are, you won't get a lot of value per point or mile on such bookings anyway, so it's not worth the bother.\n2.  Awards aren't available: Sometimes, award flights and nights just do not open up, so your only option is to pay. This is more often the case for so-called \"saver\" awards that require the fewest miles or points, and which also represent a better value. Also watch out for \"blackout dates\" on the calendar when airlines and hotels do not open up these types of awards, and if they aren't available, paying as usual is always a good alternative.\n3.  Business travel: If you are traveling for business, it is also typically just worth paying since your trip will either be covered by your business, or you might be able to deduct the expense from taxes if paying yourself.\n4.  Elite status: Another instance where it makes sense to pay for travel is if you are hoping to achieve elite status with an airline or hotel chain. If you redeem airline miles, in particular, those flights generally do not count toward elite status. This is not always the case, but with carriers including American Airlines, Delta and United, it is. Some hotel award bookings also count toward elite status, but this will depend on your program.\n5.  Saving for a dream trip: Finally, if you're saving your points or miles for a big trip sometime in the future, it can make sense to avoid redeeming them in the short run in the hopes of getting a better value from them down the line. This is especially the case if your dream trip is somewhere exotic like the Maldives, where flights and hotels can be extremely expensive but mileage and point redemptions are available.\nWhen it comes to travel, rewards points and miles can be a lifesaver. Redeeming them for flights, hotel stays and other travel expenses can save you a lot of money and make your trip that much more enjoyable. Before you go cashing in all your points, though, make sure you are getting a good value from them, redeeming them for expenses you might not otherwise be able to cover, and that you are not preventing yourself from taking an even more expensive trip in the future. END
 TITLE: How Can a Credit Card Help You Earn Airline Elite Status? CONTENT: What Is Airline Elite Status?\n-----------------------------\nElite status is a special rank that airlines give their most frequent flyers to thank them for their business. Requirements vary from airline to airline, but you'll usually have to fly more than a certain number of miles or flights and spend more than a specific amount on tickets each year to earn it. As you continue to fly and spend, you'll move up into higher echelons of elite status and enjoy more benefits. END
 TITLE: How Can a Credit Card Help You Earn Airline Elite Status? CONTENT: Earning airline elite status usually requires flying tens of thousands of miles or dozens of flight segments each year (a segment is one takeoff and one landing). Some airlines also have spending requirements in place so that you must purchase a certain amount in airfare to qualify. These requirements can vary dramatically among airlines.\nCurrently, many airlines are modifying their elite status programs due to COVID-related travel shutdowns. The numbers discussed below reflect a normal year and should only be used as a reference.\nAmerican Airlines' AAdvantage mileage program, for example, has four tiers of elite status. To earn the first level, Gold, you have to fly 25,000 elite-qualifying miles (EQMs) or 30 elite-qualifying segments (EQSs) and spend at least $3,000 in elite-qualifying dollars (EQDs) on airfare not counting taxes and fees in a calendar year. Most economy fares earn 1 EQM per mile flown on American, while premium-economy fares earn 1.5 EQMs per mile flown. Discounted business- and first-class fares earn 2 EQMs per mile flown, and full-fare business- and first-class fares earn 3. So for an average traveler who purchases coach tickets, you'd have to take either 30 flights or cover 25,000 miles while also spending at least $3,000 on airfare.\nThe next tier, Platinum, requires flying 50,000 EQMs or 60 EQSs and spending $6,000 EQDs. Platinum Pro requires 75,000 EQMs or 90 EQSs and $9,000 EQDs. Each tier's benefits improve upon the one before it on up to Executive Platinum status at 100,000 EQMs or 120 EQSs and $15,000 in EQDs. Your status is usually good through the rest of the calendar year in which you earn it, the entire calendar year following and through January 31 of the year after that. END
 TITLE: How Can a Credit Card Help You Earn Airline Elite Status? CONTENT: The Benefits of Elite Status\n----------------------------\nThe perks of elite status differ from airline to airline and tier to tier. However, most offer a similar set of benefits at the lowest levels, including bonus mileage earning, priority treatment at the airport, free checked bags and a shot at upgrades to business or first class.\nTo stick with American AAdvantage, once you hit Gold status, you'll earn 7 award miles (ones you can redeem for flights) per dollar spent on airfare instead of the 5 miles per dollar a normal AAdvantage member would earn. Gold members can also expect priority check-in, security and boarding at the airport, and receive one waived checked bag fee when traveling in the Main Cabin on American Airlines and American Eagle flights. They can bid on upgrades on flights within North America using 500-mile certificates, get standby on flights for free under certain circumstances and get a slight discount on Admirals Club airport lounge membership.\nPlatinum and Platinum Pro members earn even more bonus miles, receive an additional checked bag and have a better chance at upgrades, among other perks. Finally, with Executive Platinum status, you'll receive 11 award miles per dollar spent on airfare, the highest level of priority services at the airport, and waived fees on up to three checked bags. Executive Platinum members also enjoy the best chance at seat upgrades, including four systemwide upgrade certificates that can bump them up from economy to business or first class, even on some of the airline's longest routes, including from Dallas-Fort Worth to Hong Kong. END
 TITLE: How Can a Credit Card Help You Earn Airline Elite Status? CONTENT: How Airline Credit Cards Can Help You Earn Elite Status\n-------------------------------------------------------\nSounds like you have to buy a lot of airline tickets and spend a lot of time on planes, right? Not necessarily. Some airlines partner with credit card issuers and allow cardholders to earn points or miles toward elite status simply by spending. The airline credit cards that do so are among the most premium available and may come with high annual fees and require you to have excellent credit just to apply.\nUsing these credit cards for an elite boost also means spending a lot of money on them each year. Still, putting all your regular expenses on an airline credit card and paying them off every month might give you just the lift you need to hit that next tier of status and save some cash at the airport.\nThe Delta SkyMiles® Reserve American Express Card, for example, has a $550 annual fee. Its perks include access to Delta Sky Clubs and American Express Centurion Lounges in the U.S. and Hong Kong when flying Delta (and using your card to book your ticket in the case of Centurion Lounges), and earning 3 miles per dollar on Delta purchases. However, cardholders can also earn 15,000 Medallion Qualification Miles (MQMs) toward elite status after spending $30,000 on eligible purchases with their card in a calendar year, up to four times per year. A cardholder who spends $120,000 on purchases in a year would earn a full 60,000 MQMs without even setting foot on an airplane. That's enough for mid-range Gold Medallion status with the airline, which usually requires flying 60 segments or 50,000 elite-qualifying miles and spending $6,000 qualifying dollars.\nBarring a once-in-a-lifetime shopping spree, though, spending $25,000 on eligible purchases in a calendar year with the card will let Delta SkyMiles members waive the usual spending requirements of $3,000 to $9,000 on airfare for Medallion status up to all but the topmost tier of Diamond (that requires $250,000 spent on the card, or $15,000 on Delta airfare under normal circumstances).\nBut that's just one example. Here are other airline credit cards—many of them with more modest spending thresholds—that can help flyers earn or boost their elite status simply by spending as usual. END
 TITLE: How Can a Credit Card Help You Earn Airline Elite Status? CONTENT: ### Southwest Rapid Rewards® Priority Credit Card\n**Elite-qualifying activity**: You can earn up to 15,000 Tier-Qualifying Points per calendar year with this card. The airline's A-List status requires earning 35,000 of them, so this could be a big boost along your way. Cardholders earn 1,500 Tier-Qualifying Points per $10,000 spent on eligible purchases up to $100,000 per calendar year.\n**Annual fee**: $149 END
 TITLE: How Can a Credit Card Help You Earn Airline Elite Status? CONTENT: Things to Consider\n------------------\nWhether you're hoping to earn the base level of elite status using your credit card, or you want to use it to get a boost up to the next one, you should keep a few things in mind:\n*   First, airline credit cards that reward spending with elite-qualifying points or miles tend to charge expensive annual fees and require you to have excellent credit even to qualify.\n*   Second, the spending requirements for elite status are usually tens of thousands of dollars per year, so be sure you can take them on responsibly.\n*   Finally, many airline credit cards already offer elite-style perks like priority boarding and free checked bags. These might not be as comprehensive as those enjoyed by actual airline elites, and they don't include upgrades. However, they will still make the airport and flight experience better, all without having to put in the time and money to earn elite status by actually flying. If you regularly earn elite status and spend a lot on your credit cards anyway, though, it might be worth getting one of these credit cards to help you get to that next level of status.\nIf you think an airline credit card would make you a happier traveler without causing you to unnecessarily rack up debt in pursuit of rewards, check your credit score for free through Experian to see if it's in good enough shape to qualify you for a card. END
 TITLE: What Is the Difference Between TSA Precheck and CLEAR at Airport Security? CONTENT: TSA Precheck is a program run by the U.S. government's Transportation Security Administration. First launched in 2013, the program now extends to over 10 million members who can use expedited security lines at over 200 airports when flying one of 73 participating airlines. The TSA estimates that 99% of travelers with Precheck have screening wait times of five minutes or less on average.\nTo join, you must be a U.S. citizen or legal permanent resident and submit an online application. Next, you must schedule a follow-up appointment with a TSA officer at one of the over 380 enrollment centers around the country. During the interview, your identity and personal information will be verified, and your fingerprints taken, then you must pay the non-refundable $85 application fee. Afterward, you can check the status of your application online. If you are approved, you can find out your Known Traveler Number at that point.\nOnce you have a Known Traveler Number, you must enter it into your various airline frequent-flier accounts to be designated as a Precheck passenger when you fly. When you check in for flights, you should see the TSA Precheck logo on your boarding pass, which will allow you to use the TSA Precheck security lines at the airport. If you do not see it, you can ask a check-in agent at the airport to add your Known Traveler Number to your reservation at that point, and this should add the designation to your boarding pass.\nUnlike regular travelers, those with TSA Precheck usually do not have to take laptops and liquids out of their bags, or remove shoes and belts when going through security, which speeds up the process. TSA Precheck membership lasts five years and can be renewed up to six months before it expires. You have to pay the $85 application fee again each time you renew. END
 TITLE: What Is the Difference Between TSA Precheck and CLEAR at Airport Security? CONTENT: How to Save on TSA Precheck\n---------------------------\nIf this application fee causes you to wince, know that several of the top travel rewards credit cards offer statement credits toward the cost of TSA Precheck applications. To take advantage of this benefit, you usually just have to charge the application fee to your card. Keep in mind that this benefit is usually applicable to either TSA Precheck or Global Entry (a similar program that covers international flights entering the U.S.) periodically, but not to both programs at once. Cards that offer this benefit typically will provide a statement credit of up to $100 for Global Entry or $85 for TSA Precheck.\nYou might want to apply for Global Entry instead since many travelers who participate in that program also receive access to TSA Precheck security. As you decide which of these programs is best for you, here are a few of the credit cards that currently offer a TSA Precheck application fee statement credit benefit:\n*   Capital One Venture Rewards Credit Card: Cardholders are eligible for a statement credit toward a TSA Precheck application fee charged to their card once every four years. This card earns 2 miles per dollar on all eligible purchases, which can be redeemed for 1 cent apiece toward travel. It also does not charge foreign transaction fees. The card's annual fee is $95.\n*   Chase Sapphire Reserve®: This card provides a statement credit once every four years toward a TSA Precheck application fee charged to the card. Cardholders get up to $300 in annual travel statement credits each year and can access over 1,200 airport lounges around the world when traveling with enrollment in Priority Pass Select. Spending on dining and travel earns 3 points per dollar; grocery store purchases earn 3 points per dollar on up to $1,000 per month through April 2021; and Lyft rides earn 10 points per dollar spent through March 2022. The card's annual fee is $550.\n3.  The Platinum Card® from American Express: Platinum cardholders are eligible for a TSA Precheck application fee credit once every 4.5 years when they charge the fee to their card. Other perks include up to $200 in statement credits per calendar year toward incidental fees on a selected qualifying airline charged to their card and access to Priority Pass, Amex Centurion and Delta Sky Club lounges when traveling. You'll pay a $695 annual fee to carry this card. Unlike a traditional credit card, The Platinum Card® from American Express may only allow you to carry balances for certain charges from month to month. Terms apply. END
 TITLE: What Is the Difference Between TSA Precheck and CLEAR at Airport Security? CONTENT: *   Capital One Venture Rewards Credit Card: Cardholders are eligible for a statement credit toward a TSA Precheck application fee charged to their card once every four years. This card earns 2 miles per dollar on all eligible purchases, which can be redeemed for 1 cent apiece toward travel. It also does not charge foreign transaction fees. The card's annual fee is $95. END
 TITLE: What Is the Difference Between TSA Precheck and CLEAR at Airport Security? CONTENT: *   Chase Sapphire Reserve®: This card provides a statement credit once every four years toward a TSA Precheck application fee charged to the card. Cardholders get up to $300 in annual travel statement credits each year and can access over 1,200 airport lounges around the world when traveling with enrollment in Priority Pass Select. Spending on dining and travel earns 3 points per dollar; grocery store purchases earn 3 points per dollar on up to $1,000 per month through April 2021; and Lyft rides earn 10 points per dollar spent through March 2022. The card's annual fee is $550. END
 TITLE: What Is the Difference Between TSA Precheck and CLEAR at Airport Security? CONTENT: How to Save on CLEAR\n--------------------\nCLEAR membership costs $179 per person per year, and you can add up to three family members for $50 per person per year. However, there are several easy ways to get a discount.\nIf you are a member of Delta's SkyMiles frequent-flier program, you automatically get a discounted membership rate of $119 per year, and if you have elite status with the airline at the Silver, Gold or Platinum Medallion levels, that fee drops to $109. If you're a top-tier Diamond Medallion elite, you can get CLEAR for free by presenting your credentials when signing up.\nLikewise, if you're a member of United's MileagePlus program, you can get CLEAR for $119 per year, or just $109 if you have Premier Silver, Gold or Platinum status. If you are a top-tier Premier 1K member, you are eligible for a free annual membership.\nFolks who have the American Express® Green Card (with an annual fee of $150) are eligible to receive up to $100 per year in statement credits when using their card to pay for CLEAR membership, so that could be another handy discount if you carry this card. Terms apply. END
 TITLE: What Is the Difference Between TSA Precheck and CLEAR at Airport Security? CONTENT: Which One Should You Get?\n-------------------------\nNow for the big questions—which program is better for your needs, and should you get both? CLEAR members get to shortcut the identification portion of airport security, which gets them around potentially long lines. Those with TSA Precheck have a much more streamlined screening process since they don't have to take off clothing items or open their bags.\nJoining either program can save you a ton of time when traveling. But given that there are tremendous discounts available for joining both programs—even if you're just an occasional flier—it might be worth signing up for both and giving yourself access to the best possible (and least stressful) experience at the airport. END
 TITLE: What Is a Foreign Transaction Fee? CONTENT: How to Avoid Foreign Transaction Fees\n-------------------------------------\nThere are two main ways to avoid foreign transaction fees when you're traveling abroad or making purchases in a foreign currency.\n*   **Use a card that doesn't charge a fee.** Using credit cards that don't charge foreign transaction fees is one of the easiest ways to avoid them. There are many cards available, including travel rewards credit cards. You can also find debit cards without the fee, although they may not offer rewards.\n*   **Use local cash for purchases.** You could also use the local currency and pay in cash to avoid fees while you're abroad. Extra fees may still result, however, if you withdraw cash from a foreign ATM, and money exchangers may charge fees or give you a poor exchange rate. You also may not be comfortable carrying large amounts of cash. END
 TITLE: What Is a Foreign Transaction Fee? CONTENT: Additional Fees to Look Out For\n-------------------------------\nWhether you're abroad or making purchases in foreign currencies online, staying on the lookout for the following fees can help you save some cash.\n*   **Dynamic currency conversion fees**: You may find foreign merchants use dynamic currency conversion (DCC) and let you choose between paying with local currency or with U.S. It's generally best to pay with the local currency for two reasons: There may be a big markup on the conversion rate with DCC, and you may still have to pay a foreign transaction fee if the transaction gets processed by a foreign financial institution.\n*   **Foreign ATM withdrawal fees**: Some banks may charge an additional or higher fee to withdraw cash from an ATM outside the U.S., plus a conversion fee on your cash withdrawals. To avoid these, look for banks that don't charge any foreign withdrawal and conversions fee (or refund them if they are charged). Alternatively, you may be able to find a partner bank with free ATMs in the country where you're traveling.\nAgain, these fees can be fairly easy to avoid, but you'll need to know what to look for and you may need to plan ahead by opening a new bank account. END
 TITLE: What Is a Foreign Transaction Fee? CONTENT: Find a Credit Card Without a Foreign Transaction Fee\n----------------------------------------------------\nWhile foreign transaction fees are common on credit cards, there are also many cards that don't charge them. These fee-free cards include rewards cards that earn you cash back, points or miles cards, and may not have annual fees either. Compare your options and offers for free using Experian CreditMatchTM. END
 TITLE: What Happens When Hard Inquiries Are Removed From Your Credit Report? CONTENT: How Long Do Hard Inquiries Stay on Your Credit?\n-----------------------------------------------\nHard inquiries stay on your credit reports for two years, but they only affect your FICO® Scores☉ (the credit scores most widely used by lenders) for one year.\nThe impact of a single hard inquiry is relatively small, usually dinging your FICO® Score five points or less. You can gain those points back over just a few months' time, however, with positive credit habits such as paying down debt and making all your payments on time.\nIf you accrue several hard inquiries by applying for different types of credit (say, a credit card, personal loan and car loan) within a short period of time, however, your scores may experience a bigger drop. Multiple applications can also hurt your chances of getting a new loan, since they indicate to lenders that you're potentially taking on lots of new debt all at once. The exception is if you're rate-shopping for a mortgage or car loan and multiple lenders request your report within a short period of time: Although you will see each individual inquiry listed on your report, most credit scoring models will only count them as one. END
 TITLE: What Happens When Hard Inquiries Are Removed From Your Credit Report? CONTENT: Can You Remove Hard Inquiries From Your Credit Report?\n------------------------------------------------------\nIf a hard inquiry is the result of a credit application you made, it cannot be removed from your credit report. It is simply a matter of record, and it will fall off your report naturally after two years—and will have no effect on your credit scores after one year.\nHowever, if you discover a hard inquiry for a credit application you didn't submit, it may be a sign of attempted fraud. In this case you can file a dispute to have the inquiry removed. Filing a dispute is free and fairly easy, but it's only meant to help you remove incorrect information from your credit report. If the inquiry is determined to be the result of fraudulent activity, it will be removed.\nIf you find an unauthorized hard inquiry, be sure to review your reports for further signs of fraud, including unfamiliar accounts, and dispute them right away. END
 TITLE: What Happens When Hard Inquiries Are Removed From Your Credit Report? CONTENT: Does Your Credit Score Improve When a Hard Inquiry Is Removed?\n--------------------------------------------------------------\nIf a hard inquiry has been on your credit report for less than a year, you could possibly gain a few points by having it removed if you disputed it due to fraud. The more recent the inquiry, the more points you stand to gain. Gaining just a few points might feel satisfying, but it isn't usually enough to make a difference in being approved or declined on future credit applications.\nWhen a hard inquiry falls off your credit report naturally because it has reached the two-year mark, your credit score will likely not be affected at all since hard inquiries do not impact your scores after one year. END
 TITLE: What Happens When Hard Inquiries Are Removed From Your Credit Report? CONTENT: How to Minimize the Impact of Hard Inquiries on Your Credit\n-----------------------------------------------------------\nIt's important to do some comparison shopping when you're looking for a new credit card or loan. You may not be able to avoid new hard inquiries on your credit report, but there are a few ways to reduce the impact of shopping around:\n*   **Time your applications strategically.** If you're shopping for a mortgage or an auto loan, make all of your applications within a 14-day window. If you stick within this timeframe, all of your applications will be calculated as just one hard inquiry.\n*   **Apply selectively.** Reduce the number of applications you submit by getting selective about where you apply. Compare rates and fees first, and see if the lender offers prequalification. Prequalification can allow you to get quotes on interest rates, fees and loan amounts without a hard inquiry.\n*   **Practice good credit habits.** Virtually all other credit activities have a bigger effect on your credit scores than hard inquiries. Even if you have to add multiple hard inquiries to your reports, you can keep your credit rating high by staying current on loan payments and keeping your credit card balances to a minimum. END
 TITLE: What Happens When Hard Inquiries Are Removed From Your Credit Report? CONTENT: Further Credit Review\n---------------------\nIt's a common myth that pulling your own credit reports causes a hard inquiry and hurts your credit scores. The truth is, pulling your reports is considered a soft inquiry and doesn't affect your scores at all. In fact, pulling your credit reports is a crucial part of building and maintaining great credit scores. You can check your credit report and FICO® Score for free through Experian.\nWhen you regularly review your credit information, you can find areas for improvement and quickly address inaccuracies or signs of fraud. Monitoring your reports in this way can help you avoid unwanted surprises next time you apply for a credit card or loan. END
 TITLE: The Dos and Don’ts of Credit Card Sign-Up Bonuses CONTENT: 1\\. Time Your Application\n-------------------------\nTry to apply for a rewards credit card during the time of year when you know you might have big expenses coming up.\nFor some people, this could mean right before the holidays. For others, it could mean vacation time or before you undergo a home renovation. Take a look at your calendar and see when you might be purchasing a big-ticket item or will accrue a lot of expenses.\nYou should also make sure you are actually eligible for the spending bonus before you apply. If you've opened a previous account with an issuer, they may have restrictions on earning bonuses on a different card, so be sure to check. END
 TITLE: The Dos and Don’ts of Credit Card Sign-Up Bonuses CONTENT: 2\\. Know Your Spending Deadline\n-------------------------------\nConfirm the deadline by which you need to complete the minimum spend with your credit card issuer.\nIn many cases, the time period begins as soon as you are approved for the card. Don't assume it starts when you activate the account or when you receive the card in the mail. Get the exact date from the issuer, and set calendar alerts each month reminding you how much time you have left. END
 TITLE: The Dos and Don’ts of Credit Card Sign-Up Bonuses CONTENT: 3\\. Put Everything On Your Card\n-------------------------------\nThis might seem like a no-brainer, but the fastest way to earn a sign-up bonus is to shift all your spending to this one credit card. That means if you have bills that are automatically deducted from your checking account, shift them to the card for a couple of months. If you tend to pay in cash for a lot of items, temporarily make the switch to putting them on plastic.\nThe exception? If you're charged extra for using a credit card instead of a debit card or check. For example, some utility companies may add a 2% to 3% surcharge or so-called convenience fee on credit card purchases. So before you switch to credit, make sure it won't cost you extra for the privilege. You'll also want to make sure you pay the charges off each month and only spend what you can afford in order to not incur additional debt. END
 TITLE: The Dos and Don’ts of Credit Card Sign-Up Bonuses CONTENT: 4\\. Buy Gift Cards\n------------------\nIf you shop regularly at certain stores, consider buying gift cards to use them down the line. For example, if you know you spend a certain amount of money each month at Target, use your new credit card to put six months worth of expenses on a Target gift card and use that to cover your Target purchases.\nAgain, you want to make sure you can afford to do this—you shouldn't be going into debt to get a sign-up bonus. But make sure that your credit card issuer counts gift card purchases toward the spending minimum because not all issuers do. END
 TITLE: The Dos and Don’ts of Credit Card Sign-Up Bonuses CONTENT: 5\\. Pay Your Housing Bill\n-------------------------\nMost people's biggest expense each month is the rent or mortgage payment. Chances are, you pay this from your checking account. Find out if you can put the payment on a credit card. Some rental companies or mortgage servicers contract that ability out to third-party services like Plastiq.\nAgain, chances are you will have to pay a 2% to 3% service fee, but there may be a waiver for the first time. And sometimes, a small fee may be worth the number of points you accrue. In that case, you'll want to do the math.\nFor example, if your monthly rent is $1,000, and the service fee is 2%, you'll pay $20 for the privilege of putting it on your credit card. That $20 may be a small fraction of the rewards you'll earn by meeting a minimum spending requirement, so weigh the option. END
 TITLE: The Dos and Don’ts of Credit Card Sign-Up Bonuses CONTENT: 6\\. Pay Bills in Advance\n------------------------\nThere may be certain bills that you can pre-pay in order to knock a chunk out of the spending requirement. That could include insurance policies or cable and cell phone bills. Just be sure to check if there's a limit on how much you can prepay and whether you incur any penalties for prepayment. END
 TITLE: The Dos and Don’ts of Credit Card Sign-Up Bonuses CONTENT: 7\\. Request an Extension\n------------------------\nIf you do need more time, call your issuer to request an extension. They may be willing to give you an extra few weeks or month to meet the minimum spend. Just don't wait until the last minute to make the request—initiate it at the beginning of the purchase window. END
 TITLE: The Dos and Don’ts of Credit Card Sign-Up Bonuses CONTENT: 8\\. Do Not Go into Debt\n-----------------------\nNo credit card rewards bonus is worth going into credit card debt. Rewards cards typically have the highest interest rates of all cards, which means you could be paying an APR (annual percentage rate) of 29.99% or more on your purchases.\nCredit card debt can spiral quickly, and even the richest rewards and bonuses can't make up for it. So make sure you spend only what you can afford to pay off at the end of a billing cycle—no exceptions. END
 TITLE: What Is the Best Way to Store Your Financial Records? CONTENT: What Financial Records Should You Keep?\n---------------------------------------\nWhen it comes to tax returns, the IRS advises that you keep them and the documents used to prepare them for at least three years. Even if you're not worried about an audit, there could be errors on your returns or other issues that may require filing an amendment or taking other action down the road. You may use many different documents when preparing your returns. These usually include the following:\n*   Canceled checks, credit card statements, receipts and any other proof of payments made to validate any claims or deductions on your return\n*   Forms proving your income, such as W-2 and 1099 forms\n*   Forms related to property, particularly if you've bought or sold a home, or own investment properties\n*   Financial records related to any investments you may have, such as stock transactions or account statements, college savings statements (529 plans and the like), and retirement account statements, such as traditional and Roth IRA statements\nThe IRS has up to six years to initiate an audit if you haven't reported at least 25% of your income. As a rule of thumb, plan to keep records anywhere between three and seven years. It's better to err on the side of holding on to these forms for a longer rather than shorter time period.\nYou should also have documents for your bank and investment accounts on hand, as well as a list of and supporting documents for your loans, mortgages and other debt. You will also want hard copies of your insurance policies, as well as any wills, trusts and other important legal documents.\nFinally, your identity documents are also an important part of your financial records. These include your Social Security card and your passport, among other items. END
 TITLE: What Is the Best Way to Store Your Financial Records? CONTENT: Where Should You Keep a Hard Copy of These Documents?\n-----------------------------------------------------\nYou might be tempted to collect these papers and store at least some of them in a safe deposit box at the bank. While that may seem like a good idea, consider that you can't access these documents quickly at the bank. And if the owner of a box dies, the box is typically sealed.\nInstead, consider getting a fireproof safe for your home. You will be able to access it at any time, and it will be covered by your home insurance policy. To prevent it from being stolen in the case of a home break-in, you should get one that can be secured to the floor or wall. END
 TITLE: What Is the Best Way to Store Your Financial Records? CONTENT: How Do You Store Important Files Digitally?\n-------------------------------------------\nChances are, you'll want to store copies of important documents digitally as well. That can be a good idea—as long as you secure them properly.\nIf you're storing documents on your computer, you should encrypt the folders where you keep them. Encryption is a process that encodes a file so that only people who are authorized can access it. Typically, you'll need a special password to access your encrypted files. That way if someone is able to access your computer, they can't get access to those records easily. Both Windows and Mac operating systems offer encryption abilities for your files. You can also get third-party encryption software like VeraCrypt, which is free to use and works for Windows, MacOS and Linux. END
 TITLE: What Is the Best Way to Store Your Financial Records? CONTENT: When It's Time to Let Go\n------------------------\nIf you're confident that you've kept some of your important papers long enough, don't simply throw them into your paper recycling bin. It's important to shred all documents with any personal identification or financial information. If you don't do your own shredding at home, use a provider who will shred the documents while you wait. Protecting your identity is critical, and these important documents tend to have lots of information that thieves would love to get their hands on. Make sure that doesn't happen. END
 TITLE: Have Student Loan Debt? Your Employer Might Be Able to Help CONTENT: What if My Employer Doesn't Offer This Benefit?\n-----------------------------------------------\nIf you work at a company that doesn't offer student loan payoff assistance, you might consider talking to your boss or someone in human resources to see if they would consider it. Or, if you're negotiating your salary and benefits package for a new job, bring it up then. Some employers might be willing to include it as part of an individual benefits package.\nIf that's not an option, make sure that you are getting the best rates on your student loans. You can find the right student loan matched to your credit profile through Experian. When you sign up for free, you'll receive recommended offers. If you find an offer better than your current one, you may have the ability to consolidate or refinance. END
 TITLE: How to Become a Prime Loan Borrower CONTENT: What Are the Benefits of Being a Prime Borrower?\n------------------------------------------------\nBecause prime borrowers are considered less risky by lenders, they have little trouble getting approved for credit and are typically offered the best rates on terms for loans, credit cards and mortgages. This can translate into significant savings over the lifetime of a loan.\nHowever, prime borrowers should note that sometimes lenders advertise their best rates, which still may not be available to them. Those rates may be reserved for borrowers following in the super prime subcategory. END
 TITLE: How to Become a Prime Loan Borrower CONTENT: The best way to become a prime borrower is to improve your credit scores. To do that, you first need to know where you stand. You can check your Experian credit score for free, which makes it easy to understand your progress. You'll get information on your score, along with explainers on why it stands where it does and how you can improve it. Make note of these suggestions, because that's what you'll want to focus on to improve your score over the coming months.\nNext, you should get your credit reports from all three credit bureaus (Experian, TransUnion and Equifax) and review them for errors. Make sure each credit report accurately reflects your identity and credit history. Are there any accounts listed that shouldn't be there? What about late payments that may not be correct? If errors do exist, get those corrected as soon as possible because they could be dragging your scores down.\nYou can get your free credit report from Experian. You are also entitled to one free credit report every 12 months from Experian, Equifax and TransUnion at AnnualCreditReport.com.\nFinally, the best things you can do to improve your credit are to pay all your bills on time, not open too many new accounts and keep your credit utilization ratio low. That means not using much of the credit you have available to you. Generally, you can do this by keeping your credit card balances low or at zero. END
 TITLE: How to Become a Prime Loan Borrower CONTENT: Can I Still Get Approved for Credit if I'm Not a Prime Borrower?\n----------------------------------------------------------------\nIf you're not a primer borrower, all is not lost. You can still get approved for various credit cards and loan products, but there's a catch. You'll likely qualify for less favorable terms, like higher interest rates, lower credit limits or lower loan amounts.\nIf you're planning to take out a big loan in the future, like for a car or a home, it's worth it to spend some time trying to get yourself into the prime category. However, you could also make a bigger down payment to potentially improve your terms. Getting a cosigner who is also a prime borrower may help as well. END
 TITLE: Getting a Vacation Rental? Pay for It With These Credit Cards CONTENT: Chase Sapphire Preferred® Card\n------------------------------\n[](;site=exp&placement=ae-single-embed&sessionid=21923BB2-FD5F-E1C6-F307-8F02DE36152C&pageid=blogs:ask-experian:credit-cards-that-offer-rewards-for-airbnb-and-vrbo-stays&previouspageid=&ecsstaticid=4109F6E6-54F7-5A5E-6CC1-3439DD61983F)\nChase Sapphire Preferred® Card\n------------------------------\n[Apply](;site=exp&placement=ae-single-embed&sessionid=21923BB2-FD5F-E1C6-F307-8F02DE36152C&pageid=blogs:ask-experian:credit-cards-that-offer-rewards-for-airbnb-and-vrbo-stays&previouspageid=&ecsstaticid=4109F6E6-54F7-5A5E-6CC1-3439DD61983F)\non Chase's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nChase Sapphire Preferred® Card\n------------------------------\nAPR\n15.99% - 22.99% Variable\nRewards\n2X points on Travel\n1X points on All Other Purchases\n**Intro Bonus**\nOur best offer ever! Earn 100,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,250 when you redeem through Chase Ultimate Rewards®.\n##### Card Details\n*   Our best offer ever! Earn 100,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,250 when you redeem through Chase Ultimate Rewards®.\n*   Enjoy new benefits such as a $50 annual Ultimate Rewards Hotel Credit, 5X points on travel purchased through Chase Ultimate Rewards®, 3X points on dining and 2X points on all other travel purchases, plus more.\n*   Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 100,000 points are worth $1,250 toward travel.\n*   With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories.\n*   Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash's subscription service. Activate by 12\/31\/21.\n*   Count on Trip Cancellation\/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.\n*   Get up to $60 back on an eligible Peloton Digital or All-Access Membership through 12\/31\/2021, and get full access to their workout library through the Peloton app, including cardio, running, strength, yoga, and more. Take classes using a phone, tablet, or TV. No fitness equipment is required.\nChase recently started coding Airbnb and VRBO purchases under travel, instead of \"property management\" as it had in the past. That means you'll earn 2 points per $1 spent on purchases at vacation rental sites like Airbnb. END
 TITLE: 6 Secrets for Maximizing Credit Card Rewards and Saving Money on Holiday Shopping CONTENT: 1\\. Apply for a New Rewards Card Now\n------------------------------------\nIf you don't have a good rewards credit card in your wallet, there's still time to get one before you start your holiday spending. The good news is that several excellent rewards cards are currently offering 0% introductory APRs, so you can put your holiday purchases on those cards, earn rewards and pay them off over a period of a few months without incurring any interest. Find a list of top holiday shopping rewards cards here, or visit Experian CreditMatch® for rewards credit card offers for you based on your FICO® score. END
 TITLE: 6 Secrets for Maximizing Credit Card Rewards and Saving Money on Holiday Shopping CONTENT: 2\\. Take Advantage of Sign-Up Bonus Offers\n------------------------------------------\nThe holidays are the perfect time to take advantage of lucrative sign-up bonus offers since most people are spending a little more than usual and can reach their minimum spend requirements easily. Here's how bonus offers work: Typically, a card issuer will require you to spend a certain amount of money on purchases within the first three months of opening an account in order to earn a hefty sum of extra bonus points, cash or miles.\n> Find the best intro bonus credit cards in Experian CreditMatch™.\nFor example, the Chase Freedom® is offering is offering $150 in cash back after you spend $500 in purchases in the first 3 months of opening an account, while the Barclaycard Arrival Plus® World Elite Mastercard® offers cardholders the chance to earn 60,000 bonus miles after spending $5,000 in purchases within the first 90 days (60,000 miles can be redeemed for $600 in travel purchases). END
 TITLE: 6 Secrets for Maximizing Credit Card Rewards and Saving Money on Holiday Shopping CONTENT: 3\\. Make Sure You're Using the Right Card on the Right Purchases\n----------------------------------------------------------------\nBefore you start spending, take some time to do an audit of all the cards in your wallet. Review the terms of these cards—do any put caps on how many points, miles or cash back you can earn? Do any of them offer extra rewards on spending for certain kinds of shopping categories? You don't want to leave money on the table by using the wrong card on the wrong purchase. For example, if you're buying a gift at Bloomingdale's, you'll want to make sure you pay for it using the Chase Freedom® if you have it because cardholders earn 5% cash back on up to $1,500 in purchases made at department stores during the fourth quarter of 2018.\nTo help figure out which cards to use when, check out an app like Birch, which takes a look at the credit cards that you own and tells you which ones offer the most rewards on certain spending categories and locations. END
 TITLE: 6 Secrets for Maximizing Credit Card Rewards and Saving Money on Holiday Shopping CONTENT: 4\\. Use Credit Card and Airline Shopping Portals to Boost Rewards\n-----------------------------------------------------------------\nMany major airline rewards programs and credit card issuers offer online shopping portals that can help you earn extra points on purchases that you were planning to make anyway at featured retailers.\n> Find the best airline credit cards in Experian CreditMatch™.\nFor example, you can earn extra points at 700 stores through Barclaycardrewardsboost.com, the Barclays online shopping portal. Simply log in with your Barclays card account, search the retailer you want to buy from and click \"Shop now.\" The shopping portal takes you to the retailer's website, where you can make your selections and pay for your purchases using any credit card. The shopping portal keeps track of how much you spent and will credit you bonus points. For example, Barclays is currently offering 5 points per $1 spent on purchases at Macys.com if you shop through the portal.\nIf you know you're going to make holiday purchases online, check out a site like CashbackMonitor.com or evreward.com. There, you can search for different retailers to find out which rewards programs from airlines and banks are offering the best reward rates for that particular store. END
 TITLE: 6 Secrets for Maximizing Credit Card Rewards and Saving Money on Holiday Shopping CONTENT: 6\\. Pay Attention to Amex Offers\n--------------------------------\nAmerican Express cardholders should pay close attention to the Amex Offers section in their online accounts. There, American Express offers targeted discount deals at a wide variety of merchants. You must log in to your American Express account, scroll to the Amex Offers section, and browse through a tailored list of offers for each Amex card on your account. If you're interested in an offer, you must opt-in and then make the purchase with your Amex card. The savings can be significant. For example, one offer available on some cards right now gives consumers $15 back on purchases of $75 or more at Aveda. END
 TITLE: Does Bankruptcy Get Rid of Judgments? CONTENT: What Is a Judgment?\n-------------------\nA judgment is a court order, issued in response to a creditor's suit against you, that declares you liable to pay what you owe them. A creditor with a judgment against you can do any or all of the following in pursuit of the money they are owed:\n*   Garnish your wages\n*   Take from your bank accounts\n*   Obtain a _judgment_ _lien_ against your property (real estate, vehicles, etc.), which could allow a creditor to seize the property, compel you to sell it, or entitle them to collect what they're owed from the proceeds when you sell the property voluntarily.\nJudgments can be issued in all kinds of civil matters, including personal injury liability suits, small-claims cases and even property-boundary disputes—in any case where monetary damages can be assigned.\nThe most common judgments relevant to bankruptcy involve unpaid debts. Lenders, credit card issuers and other creditors may bring suit if you default on your accounts and secure judgments ordering you to pay what you owe.\nThe nature of the debt behind each judgment, and whether it is considered priority debt that cannot be discharged, will determine if bankruptcy can erase it. END
 TITLE: Does Bankruptcy Get Rid of Judgments? CONTENT: Where Do Judgments Come From?\n-----------------------------\nThere are a variety of ways judgments can be rendered against you in response to creditor litigation or other legal actions.\n*   **A confession of judgment** is a document in which you acknowledge liability for the debt. Creditors often require you to sign one as a condition of entering a repayment plan, with the understanding that they will use it to secure a judgment if you don't stick to the plan.\n*   **A judgment by default** is the result of you failing to (or choosing not to) respond to a creditor's lawsuit.\n*   **A judgment by consent** occurs when you respond to a creditor's suit by accepting responsibility for the debt.\n*   **A judgment after trial** occurs when you and your creditor argue your case before a court, and the court finds you liable for the debt.\nWhen you file for bankruptcy, holders of judgments against you are required to stop efforts to collect what you owe them, so any wage garnishments or collections from bank accounts must cease. Any pending lawsuits seeking judgments against you are also suspended, and typically dismissed or withdrawn upon completion of the bankruptcy process. END
 TITLE: Does Bankruptcy Get Rid of Judgments? CONTENT: Is a Judgment a Dischargeable Debt in Bankruptcy?\n-------------------------------------------------\nThe manner in which a judgment is obtained has no bearing on whether bankruptcy can eliminate it. What matters is if the debt or obligation underlying the judgment is subject to discharge through bankruptcy.\nBoth Chapter 7 (liquidation) and Chapter 13 (reorganization) bankruptcy can eliminate, or discharge, many consumer debts, including:\n*   Credit card debt\n*   Personal loans\n*   Overdue rent or bill payments\n*   Private debts to friends or family members\nThe attachment of a judgment to a debt does not change the debt's eligibility for discharge through bankruptcy, and judgments associated with debts such as these are typically eliminated in the bankruptcy process.\nDebts are discharged in a Chapter 7 proceeding following the debtor's forfeiture of assets (with the exception of certain exempt items, typically including the debtor's primary vehicle up to a certain value). Debts are discharged in a Chapter 13 bankruptcy after the debtor completes the repayment plan imposed by the bankruptcy court.\nNeither Chapter 7 nor Chapter 13 bankruptcy can discharge all debts, however. Obligations that cannot be eliminated through bankruptcy include:\n*   Child support and alimony\n*   Criminal fines\n*   Mortgages (which entitle the lender to seize the mortgaged property to recoup financial loss)\n*   Obligations incurred through negligence, fraud or other criminal acts\nIn addition;\n*   Chapter 7 bankruptcy cannot discharge car loans, obligations to pay court costs or fees, or debts secured by liens (with certain exceptions).\n*   Chapter 13 specifically cannot discharge certain tax debts.\nStudent loan debt is not automatically subject to discharge through bankruptcy, but it can be eliminated through a process called adversary action, which is essentially a lawsuit filed inside a bankruptcy proceeding. Successful discharge of a student loan debt (and any judgments associated with it) requires that you show a good faith effort to repay the debt has been made, and that making additional payments would constitute a hardship for you or your dependents. In an adversarial action, the creditor is permitted to appear in court to challenge your claims, and the court rules on whether the debt can be discharged. END
 TITLE: Does Bankruptcy Get Rid of Judgments? CONTENT: What Is Lien Avoidance?\n-----------------------\nSome judgment liens can be eliminated, or _avoided_ in legal lingo, in the course of a bankruptcy. A judgment lien is avoided if it applies to property you claim as exempt from liquidation or forfeiture in your bankruptcy.\nIn a Chapter 7 bankruptcy, the debtor's primary vehicle is exempt from liquidation or forfeiture if it's worth less than your state's exemption limit. Any judgment lien against an exempted vehicle you own free and clear can be wiped out through bankruptcy.\nNote that this is distinct from any claim to the vehicle retained by the issuer of the loan used to purchase it. If you are still paying off a loan on the vehicle, bankruptcy may eliminate your obligation to cover delinquent payments on that loan, but the lender's right to repossess the vehicle—a form of lien that's not dependent on a court order—still stands, and you may still lose the vehicle.\nIn a Chapter 13 bankruptcy, it's possible to avoid judgment liens against certain real estate holdings by claiming the real estate as exempt from consideration in the bankruptcy process. Doing so can be tricky, however, because it also eliminates any protection you may have against repaying outstanding debt owed on any mortgage on that property. Because of the potential complexity of claiming exemptions under Chapter 13, it's wise to consult with your lawyer, and perhaps a real estate professional, when considering your options. END
 TITLE: Does Bankruptcy Get Rid of Judgments? CONTENT: Do Judgments Impact Your Credit?\n--------------------------------\nFor many years, judgments and liens appeared in the public records section of credit reports, but that is no longer the case. Bankruptcies are now the only public records collected and listed on credit reports maintained by the three national credit bureaus (Experian, TransUnion and Equifax).\nChapter 7 bankruptcies appear on your credit reports for 10 years from the date of the bankruptcy filing, while Chapter 13 bankruptcies remain for seven years from the filing date.\nA bankruptcy negatively affects your credit score as long as it remains on your credit report, but its impact diminishes over time. Since judgments and liens no longer appear on credit reports, they have no effect on credit scores.\nLegal judgments and their consequences, including garnished wages and drained bank accounts, can compound the distress of mounting debt. Filing bankruptcy is stressful in its own right, but it can bring instant relief from judgments, in many cases eliminating them permanently. END
 TITLE: What Happens to My Car During Bankruptcy? CONTENT: Can You Keep Your Car After Filing Bankruptcy?\n----------------------------------------------\nThere are several factors that go into whether you'll be able to keep your vehicle through the bankruptcy process. Since your vehicle is considered an asset, and potentially a valuable one, it's something creditors may pursue when looking to collect debt. Your vehicle may, however, be counted under an exemption that protects it from repossession. In general, the following is considered to determine if you'll be able to keep your car:\n*   The type of bankruptcy you're filing\n*   Whether you own, lease or are still financing the vehicle\n*   The value of the vehicle\n*   What exemptions apply where you live\nRead on to learn more about what you can expect to happen to your vehicle when you file bankruptcy. END
 TITLE: What Happens to My Car During Bankruptcy? CONTENT: What Happens to Your Car in Chapter 7 Bankruptcy?\n-------------------------------------------------\nFiling for Chapter 7 bankruptcy can clear some unsecured debts, but it may also require selling or giving up some assets to pay debts. The items that are exempt from liquidation, and the value that can be exempted, varies by state.\nIf you file for Chapter 7 bankruptcy and local bankruptcy laws allow you to exempt all of the equity you have in your car, you can keep the vehicle—as long as you're current on your loan payments. And if the market value of a vehicle you own outright is less than the exemption amount, you're in the clear.\nTo determine how much equity you have in the vehicle, subtract your current loan balance from the car's value. Because vehicles tend to depreciate in value fairly quickly, you may not have much equity unless you're nearing the end of your loan term.\nOnce you've determined how much equity you have in your vehicle, take a look at what the motor vehicle exemption is in your state. If you have less equity than the exemption limit, the car is protected. For example, if your state's exemption limit is $4,000 and you have $3,500 in equity in your vehicle, you can keep it.\nIf the equity in your car exceeds the exemption limit, a few different things can happen.\n*   The trustee (the person managing your bankruptcy case) can sell your vehicle, give you the exempted amount, and use the remainder to repay creditors. They may also give you the option to pay off the equity at a discount in order to keep the car.\n*   If you're behind on your vehicle loan payments, the lender can repossess the car. A vehicle is not protected by the exemption if the loan attached to the vehicle is delinquent. But you may be able to keep the car by paying the remainder of the loan in one lump sum, or by reaffirming the loan, which allows you to modify it and get back in good standing.\n*   You also have the option to surrender your vehicle to the lender, which removes your responsibility from the auto loan after bankruptcy. But doing so means you won't have a vehicle, and doing so will have credit consequences similar to repossession. END
 TITLE: What Happens to My Car During Bankruptcy? CONTENT: What Happens to Your Car in Chapter 13 Bankruptcy?\n--------------------------------------------------\nAnother form of bankruptcy is Chapter 13, which works a bit differently from Chapter 7. Rather than liquidating non-exempt assets to repay creditors, you'll enter a debt repayment plan. Your property isn't sold off with this form of bankruptcy; instead, your finances are reorganized and you'll begin the process of repayment. If you own your car outright you'll be able to keep it.\nYou will have a repayment period of either three or five years, and once that period ends, some remaining debts can be discharged—meaning you don't have to pay them anymore. Not all debts can be discharged, however. Credit card and medical debt can be discharged, for example, but mortgages and student loans cannot.\nWhen you file Chapter 13 bankruptcy, your debt is grouped into three buckets:\n*   **Priority debts**: These must be repaid in full. This includes bankruptcy costs, unpaid tax bills from the past three years, and child and spousal support.\n*   **Secured debts**: Car loans are included in this category. If you have a car loan, the amount you owe on it may be reduced in the Chapter 13 bankruptcy process if you owe more on it than its current value. Also, if you can qualify for a repayment plan and get caught up on your loan, you may be able to keep the vehicle.\n*   **Unsecured debts**: These will be discharged in the bankruptcy after you've completed your repayment plan.\nKeep in mind that if you aren't able to catch up on your auto loan, or you can't afford repairs or payments on the car anymore, you can get out of payments by surrendering the car back to the lender, which, as mentioned, has credit consequences. END
 TITLE: What Happens to My Car During Bankruptcy? CONTENT: How Does Bankruptcy Affect Credit?\n----------------------------------\nBoth forms of bankruptcy can severely damage your credit for many years to come, so filing isn't an action that should be taken lightly.\nChapter 7 bankruptcy stays on credit reports for 10 years, while Chapter 13 bankruptcy sticks around for seven years. This means even nearly a decade after filing, potential creditors, lenders, landlords, utility companies and others legally allowed to view your credit will be able to see the bankruptcy on your report. Having bankruptcy in your history can cause you to be denied for new applications, such as for loans or credit cards. If a lender or creditor does approve you, you may face sky-high interest rates or fees.\nDuring this time, though, you can help rebuild your credit by making wise financial decisions. If you pay all of your bills on time, avoid overspending, and use a secured credit card responsibly, you can slowly nudge your credit score back up. END
 TITLE: What Happens to My Car During Bankruptcy? CONTENT: Monitor Your Credit\n-------------------\nOnce you file for bankruptcy, it's wise to start monitoring your credit regularly. This allows you to see how the bankruptcy is affecting your credit as well as how any efforts you make to improve your score help rebuild it. It also helps you quickly see if there's any new activity on the report that shouldn't be there, such as errors or fraud that could harm your credit. END
 TITLE: Can I File for Bankruptcy With $35k in Credit Card Debt? CONTENT: How Does Bankruptcy Work?\n-------------------------\nThere are two types of bankruptcies for consumers: Chapter 7 and Chapter 13. Under Chapter 7 bankruptcy, the court typically requires that you sell off some of your assets and pay off what debt you can, with the remainder discharged.\nChapter 13 bankruptcy, in contrast, allows you to keep your property but requires you to repay all or a portion of your debt over a three- or five-year period. Once you've completed the repayment plan, any remaining balances included in the bankruptcy are discharged.\nWith both types of bankruptcy, most forms of unsecured debt can be discharged, including credit card debt. Others types of dischargeable debt include medical bills, utility bills, judgments, certain tax debts and more. In most cases, though, you won't be able to discharge a mortgage loan, student loans, child support and alimony, among others.\nBankruptcy is a last-resort option, and it's important to consider other options and pay off your credit card debt in other ways first. END
 TITLE: Can I File for Bankruptcy With $35k in Credit Card Debt? CONTENT: What Are the Requirements for Bankruptcy?\n-----------------------------------------\nThe requirements for bankruptcy depend on the type you're hoping to file. To file Chapter 7 bankruptcy, for instance, your income in the previous six months must be lower than the median income for households of the same size in your state. If it isn't, you can undergo a means test that assesses your financial status and ability to pay your debts.\nOther factors the court considers include how long it's been since you last filed bankruptcy, whether you've completed a credit counseling course and the reason behind the filing.\nUnder Chapter 13 bankruptcy, you must have enough income to make the monthly debt payments outlined in the reorganized debt plan. You must have also filed a tax return in all of the previous four years. The court will also consider the amount of your debt—you can't, for example, have more than $419,275 in unsecured debt—as well as whether you've completed a credit counseling course and more.\nIf you're not sure whether you qualify for bankruptcy, search for an attorney in your area who is willing to do a free consultation to assess your situation and provide you with expert advice. END
 TITLE: Can I File for Bankruptcy With $35k in Credit Card Debt? CONTENT: How Does Bankruptcy Affect Your Credit?\n---------------------------------------\nOne of the primary reasons bankruptcy is typically considered a last resort is because it has significant negative consequences for your credit history.\nFor starters, a Chapter 13 bankruptcy will remain on your credit report for seven years, and a Chapter 7 will stay on there for 10 years. During this time, and especially during the first years, it can be very challenging to get approved for credit.\nOf course, some lenders are willing to work with borrowers who have a bankruptcy on their credit report, but they'll likely charge high interest rates and fees. A bankruptcy will also hurt your credit scores, which can complicate borrowing as well as things like employment and even your insurance premiums.\nThe good news is that it's possible to recover after bankruptcy. As time passes from the date you filed, and you continue to add positive information to your credit reports through responsible credit behaviors, the impact of bankruptcy can soften. Recovery still won't be a quick or easy path, though, so think carefully before you file. END
 TITLE: Can I File for Bankruptcy With $35k in Credit Card Debt? CONTENT: How to Pay Off Credit Card Debt and Avoid Bankruptcy\n----------------------------------------------------\nThere are a few different options you can consider as you work to pay off a high credit card balance:\n*   **Debt snowball method**: If you have the means to make payments, consider this approach to accelerate the payoff process. You'll start by making just the minimum payment on each credit card account, but you'll pay as much as you can toward the account with the lowest balance. Once that account's paid off, you'll take what you were paying toward it and direct it to the card with the next-lowest balance, and so on until you've paid off all your accounts. The debt snowball method can be helpful if you need some quick wins with lower balances to keep you motivated.\n*   **Debt avalanche method**: The debt avalanche method works similarly to the debt snowball method, but with one key difference: Instead of focusing first on your account with the lowest balance, you'll target the account with the highest interest rate. This approach will usually save you more money on interest. How much you save, though, will depend on your account balances and interest rates.\n*   **Debt consolidation**: If your credit is in good shape, you may be able to get a debt consolidation loan or a balance transfer credit card. With the first option, you'll pay off your credit card debt with a personal loan. Depending on your credit, you may qualify for a lower rate than what you're paying now, and personal loans have a set repayment schedule, which can help keep you on track. With a balance transfer card, you can transfer debt from one card to another and enjoy an introductory 0% APR for a period of time, usually 12 months or more. There are often upfront fees with both options, so do your research to find the best and cheapest option for you.\n*   **Debt management plan**: If you're struggling to make your payments but aren't yet behind or you've missed one or two, consider speaking with a credit counselor. Nonprofit credit counseling agencies can put you on a debt management plan. With this arrangement, you'll make one large payment every month to the agency, and it will disburse the funds to your creditors on your behalf. These agencies may also be able to negotiate lower interest rates and monthly payments for you. However, you'll typically need to pay a modest upfront and ongoing fee for this service.\n*   **Debt settlement**: If you're well behind on your monthly payments, debt settlement may be an option to consider before bankruptcy. With this option, you'll employ a debt settlement company or law firm to negotiate with your creditors on your behalf. Before that happens, you'll need to pay into an account with the company or firm until you achieve a balance they can work with. During that time, you won't make payments to your creditors. Late payments and settled accounts can have a significant negative impact on your credit score, so avoid this method unless bankruptcy is your only other option.\nAs with bankruptcy, it's important to consider each option carefully and determine if it's the best path for you. Regardless of which option you choose, though, avoiding bankruptcy can make a huge difference for your future. END
 TITLE: Can I File for Bankruptcy With $35k in Credit Card Debt? CONTENT: Make It a Habit to Monitor Your Credit\n--------------------------------------\nWhether you opt for bankruptcy, debt consolidation or any other of the above options, it's important to keep track of your credit score during the process.\nWith Experian's free credit monitoring service, you'll get free access to your FICO® Score☉ powered by Experian data. You'll also be able to view your Experian credit report, which is updated every 30 days. Other features include real-time alerts when changes are made to your credit report, including hard inquiries, new accounts and changes to your personal information.\nAs you stay on top of your credit, you'll be able to spot potential issues quickly and address them before they damage your credit score too much. You'll also be able to keep track of what your creditors are reporting to the credit bureaus and make sure it's accurate.\nAs you come out the other side of your debt repayment plan, maintaining the habit of checking your credit regularly and developing good credit habits can help you achieve your goals of rebuilding your credit history more quickly. END
 TITLE: Looking for a Credit Counselor? Here’s How to Find a Good One CONTENT: Make Sure Your Counselor Is Certified\n-------------------------------------\nOnce you find a counselor through one of the portals listed above, you'll want to ensure that the counselor is certified. There are several agencies that certify credit counselors using stringent standards: the NFCC, the Financial Counseling Association of America and the Council on Accreditation, which focuses on general social service organizations that help consumers.\nStart by reviewing the counselor on your own to find out if they hold any of these certifications, but be sure to ask them directly for their credentials as well. And don't be afraid to check out a few different counselors before settling on one. You'll want to make sure you have the right fit. END
 TITLE: Looking for a Credit Counselor? Here’s How to Find a Good One CONTENT: Set Up a Preliminary Meeting\n----------------------------\nOnce you've identified a few counselors, call to set up a preliminary meeting in person or over the phone. This initial session should always be free. During the meeting, interview the counselors about their experience, approach and cost structure.\nDepending on the types of services you'll need, your sessions could be free if they're basic, or they could cost a small fee. You'll want to stay away from for-profit companies, especially ones that offer quick fixes. Most credit counselors work at nonprofit agencies, but depending on the time they will spend with you, they might charge a small fee, which is normal. Be sure to get a quote in writing, and find out whether it's per session, on a monthly basis or some other structure.\nAsk a lot of questions about the process. If you feel uncomfortable with the counselor or are unclear about how things work, don't hesitate to ask more questions. It's OK to move to another counselor if one doesn't seem like a good fit. Don't rush the process—it's perfectly fine to take a reasonable amount of time to find the right counselor for you. END
 TITLE: What You Need to Know About Amazon’s Secured Card CONTENT: How Amazon Credit Builder Works\n-------------------------------\nAmazon.com offers two different versions of its Credit Builder account, the Amazon.com Store Card Credit Builder and Amazon Prime Store Card Credit Builder. Both are issued by Synchrony Bank. Like Amazon's standard Store Card and Prime Store Card, these accounts only allow you to make purchases from Amazon.com, as they are not part of a payment network such as Visa, Mastercard or American Express.\nInstead of offering an unsecured credit line, the Credit Builder cards require you to submit a refundable security deposit before your account can be opened. The size of your security deposit becomes the amount of available credit that you can spend at Amazon.com.\nIf you have an Amazon Prime membership, then you can receive the Amazon Prime Store Card Credit Builder, which offers you 5% back on all purchases or a promotional financing offer. Otherwise you'll receive the Amazon.com Store Card Credit Builder, which doesn't offer rewards. Either way, there's no annual fee for these cards.\nOnce you start using your Amazon.com Store Card Credit Builder or Amazon Prime Store Card Credit Builder, it will work just like any other store credit card. You'll receive a monthly statement and be required to make at least a minimum monthly payment on the account. And if you don't pay your entire statement balance in full, then you'll incur interest charges.\nAmazon will report your balance and payment information to the major consumer credit bureaus (Experian, TransUnion and Equifax). And with responsible use, the card will add to your positive credit information and you could see your credit score climb. Eventually, you could even be eligible to upgrade your card to a standard unsecured card and receive your deposit back. END
 TITLE: What You Need to Know About Amazon’s Secured Card CONTENT: This card offers a way to rebuild your credit with no annual fee and few other fees. And although it's a store card that's not part of a larger payment network, Amazon is one of the largest stores in the world, with a selection of over 100 million items.\nBetter yet, Prime members are able to receive 5% back by using an Amazon Prime Store Card, including this secured card version. Prime members can choose a promotional financing option instead of receiving 5% back on their purchases.\nMost important, you can qualify for this card with bad credit, and balance and payment information will be reported to the major consumer credit bureaus to help get your credit score back on track. This option helps customers rebuild their credit when they aren't able to qualify for a standard, unsecured credit card. END
 TITLE: What You Need to Know About Amazon’s Secured Card CONTENT: Disadvantages of the Amazon Secured Card\n----------------------------------------\nThe main downside of this card is that it can't be used for purchases from merchants other than Amazon. Competing card issuers offer secured credit cards that are part of payment networks like Visa, Mastercard and Discover, which give you wider purchase options. And while many of these cards have annual fees, some do not.\nIf you're a regular Amazon customer who needs to rebuild your credit, these secured Credit Builder cards could be a good option for you. By offering a no-fee option for those with bad credit, and rewards for Prime members, they may benefit Amazon devotees. END
 TITLE: How to Build Credit After a Bankruptcy CONTENT: Practice Good Credit Habits\n---------------------------\nPracticing good financial habits is the key to building excellent credit after a bankruptcy. When you stick to these principles, your credit can recover from any setback:\n*   **Make all debt payments on time.** Payment history is the single biggest factor in determining your credit scores. When you make credit card and loan payments on time, you add new, positive information to your credit reports. This helps build up your scores and shows future creditors that you're a reliable borrower.\n*   **Stay on top of bills.** Timely payments of household bills like cellphone and utility accounts help you avoid late fees and prevent accounts from going to collections, where they can damage your credit. Now, on-time payments of your cellphone, utility and even your video streaming and cable bills can actually help you build up your credit scores with Experian Boost™† . This free service gives you credit for on-time monthly payments that previously couldn't help your credit, often resulting in an instant increase to your Experian FICO® Score☉ .\n*   **Avoid using plastic.** Having a credit card and making your monthly payments is a great way to build credit. But contrary to popular myth, carrying a balance on your card isn't necessary to maintain good credit. In fact, one of the best and quickest ways to build good credit is to pay off your credit card balances—and continue paying them off, in full, every month.\n*   **Save for emergencies.** When you don't have money in savings, a small but unexpected expense can throw your finances out of whack, tempting you to take on new debt or skip bill payments. Even if you can't afford to put tons of money into an emergency savings fund, start by working towards a goal that's achievable for you, like saving one month's rent. The best way to get started is to automatically set aside a little bit of cash from every paycheck.\n*   **Give it time.** When it comes to credit, quick fixes tend to cause more problems than they solve. Credit repair companies claim they can repair your credit fast, but their solution comes with a price tag and may include big risks. At the end of the day, the cheapest and most effective way to improve your credit is to work on it yourself. END
 TITLE: How to Build Credit After a Bankruptcy CONTENT: Apply for a Secured Credit Card\n-------------------------------\nAfter a bankruptcy, it may be difficult to get approved for new loans or credit cards. But having open credit accounts helps you to rebuild your credit. So what do you do?\nSecured credit cards are a great way to get started. You don't need good credit to qualify for a secured credit card. Instead, you qualify by making a deposit that the creditor can keep if you stop making payments on the account. Here are a few key features to look for in a secured card:\n*   **Reporting to credit bureaus**: Make sure the card issuer will report your account information to all three major credit bureaus (Experian, TransUnion and Equifax), giving you a better opportunity to build up all of your credit scores.\n*   **Conversion option**: Ideally your secured credit card will \"convert\" to unsecured after a set period of time. When it converts, you get your deposit back, as long as you've paid your balance. You can also keep using the card to help you continue building your credit history.\n*   **Deposit amount**: The larger the deposit on a secured card, the higher your credit limit. Having more credit available—that you're not using—helps you improve your credit utilization ratio and build up your scores.\n*   **Rates and fees**: Fees and interest rates may be high compared with unsecured cards. Make sure you review the annual percentage rate (APR), annual fee, maintenance fee and any other fees to choose the best secured card and keep your costs to a minimum.\nMany credit unions offer secured credit cards, and some banks too. You can also use Experian CreditMatch™ to compare multiple secured credit card offers in one place. END
 TITLE: How to Build Credit After a Bankruptcy CONTENT: Look Into a Credit-Builder Loan\n-------------------------------\nIt's normal to be nervous about taking out a loan after bankruptcy, but credit-builder loans come with features that help you rebuild your credit with less risk.\nA credit-builder loan works sort of like a loan in reverse. Instead of getting a lump sum of money upfront, you make monthly payments into a savings account that's managed by the lender. At the end of your payment term, which is usually one to two years, you receive the money you paid into the account. Typically the full amount is $1,000 or less.\nNot every bank offers credit builder loans, but you can find them through local credit unions, community banks or by searching online. END
 TITLE: How to Build Credit After a Bankruptcy CONTENT: Monitor Your Credit\n-------------------\nKeeping an eye on your credit information is a crucial part of recovering from a bankruptcy. After filing, you'll want to regularly monitor your credit to keep an eye on the accounts that are discharged and make sure they're reported correctly.\nMonitoring your credit can also help you catch errors and early signs of identity theft, like loan applications made in your name, before they snowball out of control.\nThere are a few great ways to review your credit information for free. One way is to visit AnnualCreditReport.com for copies of all three of your credit reports once a year—now available once a week, through April 2022, as a result of the COVID-19 pandemic.\nFor access to your credit information and free alert notifications, you can also sign up for free to see your Experian credit report every 30 days. END
 TITLE: How to Build Credit After a Bankruptcy CONTENT: After you file for bankruptcy, there's no magic trick that makes your credit rebound overnight. Building great credit takes time, but understanding what goes into your credit reports and scores will help you speed up the process.\nAvoiding loans and credit cards might feel like your best bet after a bankruptcy, but if you don't have any open accounts, it can be nearly impossible to add new, positive information to your credit file.\nInstead of swearing off credit forever, focus on using credit cards and loans sparingly, making all of your payments on time, and regularly monitoring your credit information. Together these steps can you help you rebuild strong credit within a few years of filing for bankruptcy. END
 TITLE: Is There a Limit on Balance Transfers? CONTENT: How a Balance Transfer Works\n----------------------------\nWhen you make a balance transfer, you are moving all or part of an existing balance from one or more credit cards to another, usually to take advantage of better interest rates. The transferred amount on your balance transfer card becomes subject to the rates and terms of the account.\nOnce you're approved for a balance transfer card (or decide to take advantage of a special balance transfer rate on an existing card), the new credit card will pay off your existing balances as instructed by you, or send you checks that you can then send to the accounts you're paying off.\nA balance transfer can be advantageous when the account you're transferring your balance to has a lower interest rate, or possibly even a 0% annual percentage rate (APR) introductory financing offer. However, most credit card accounts will impose a balance transfer fee of 3% or even 5% of the amount transferred, which will reduce the amount of money that you can save. Also keep in mind that if you don't pay off the transferred amount by the end of the promotional APR period, the balance will be subject to the ongoing interest rate, which will be much higher than the introductory rate. END
 TITLE: Is There a Limit on Balance Transfers? CONTENT: How Much Can You Transfer?\n--------------------------\nThe amount of money you can transfer from one account to another depends on the card issuer. In most cases, you'll only be able to transfer an amount equal to the available balance on the account you're transferring it to. And you will usually only know the size of your credit limit once you've been approved for a new account. The card issuer will consider your credit history and income to determine that credit limit.\nIf you have several high credit card balances and want to transfer them to more than one 0% APR card, you might think it's a good idea to apply for multiple new balance transfer credit card accounts. It's not. By doing so you would incur multiple hard inquiries on your credit reports, which will lower your credit scores. END
 TITLE: Is There a Limit on Balance Transfers? CONTENT: What Credit Score Do You Need for a Balance Transfer?\n-----------------------------------------------------\nThere's no minimum credit score required to perform a balance transfer, but the better credit you have, the lower the interest rate you'll qualify for.\nHaving a good credit score could also result in getting an account with a larger line of credit. In general, when it comes to credit cards that offer 0% APR introductory financing, you'll usually have to have good or excellent credit to be approved for the cards with these offers. You may qualify if you have fair credit, but not likely for the most competitive offers. END
 TITLE: Is There a Limit on Balance Transfers? CONTENT: Is a Balance Transfer the Right Choice for You?\n-----------------------------------------------\nBalance transfers can be a great way to help you pay off your credit card debts, but they're not right for everyone. First of all, you need a balance transfer credit card with a significantly lower interest rate than the card where your balance currently is.\nNext, you'll want to make sure you know what the balance transfer fee is, and if it will be worth paying. For example, if you are just a few months away from paying off your balance, it will probably not be worth incurring a 5% balance transfer fee just to save a few bucks on interest charges. But if you can save interest charges that would have exceeded the cost of the balance transfer fee, and can pay off the balance before the 0% APR offer ends, then transferring your balance can be a great way to help you pay off your credit card debt. END
 TITLE: Is There a Limit on Balance Transfers? CONTENT: What Are Balance Transfer Alternatives?\n---------------------------------------\nIf a balance transfer isn't the right option for you because you either can't qualify for one or the cost would exceed the benefits, there are still some alternatives to help you reduce your credit card debt. For example, you could try contacting your card issuers to see if they will offer you a lower rate on your existing balances. You can also consider a debt consolidation loan, which is a single loan with a lower interest rate than you're paying on your card balances that you can use to pay off multiple other outstanding balances.\nAnother option is a debt management plan, which is where a credit counselor works with your creditors to reduce your monthly payments and interest rates, and possibly even waive penalties. Debt management plans are especially geared to those with a large amount of debt. END
 TITLE: Is There a Limit on Balance Transfers? CONTENT: The Bottom Line\n---------------\nBalance transfers can be an easy way to enjoy a lower interest rate on your existing debts, or even avoid interest altogether for a limited amount of time. By taking the time to understand how credit card balance transfers work, along with other options, you can choose the best strategy to help you pay down your existing balances. END
 TITLE: What Is a Good APR for a Credit Card? CONTENT: How Your Credit Card APR Is Determined\n--------------------------------------\nThe term APR stands for annual percentage rate, which is the rate lenders charge when you borrow money. It represents the yearly cost of funds, but it can be applied to loans made for much shorter periods of time. If you pay off your balance in full every month, you may never have to pay APR on your credit card. But if you carry a balance, your card issuer will charge you interest on the balance.\nEvery credit card has its own APR and fee structure, which you can find in the card's Schumer box. You can typically find this box on a credit card website's landing page or during the online application process.\nHere's an example of what you'll see:  \nDepending on the credit card, it may offer just one APR to all approved cardholders, a few options or a range. Because rewards credit cards offer more value to cardholders, they often charge higher APRs than basic credit cards. You'll typically find the highest credit card APRs on store credit cards and credit cards for bad credit.\nIf a credit card issuer offers more than one APR on a card, the APR it assigns to you is based on your creditworthiness, or how the issuer views you as a risk.\nOne way they assess how risky you are is by checking your credit scores. People with high credit scores tend to be less risky borrowers than people with low credit scores.\nYour credit scores aren't the only risk factors lenders consider, though. They'll also look at your past payment history, any negative items on your credit report and your debt-to-income ratio (DTI). As a result, you can still end up with a high APR even if you have a good credit score. END
 TITLE: What Is a Good APR for a Credit Card? CONTENT: Is It Important to Have a Good APR?\n-----------------------------------\nAPR is one of many key features of a credit card. It's important to weigh the pros and cons of having a card with a good APR against the expense of having other more competitive terms and benefits. It largely depends on how you use your credit cards. For example, if you pay your entire statement balance every month, then you'll avoid interest charges and the APR won't really matter. In this case, you may choose to earn competitive rewards and enjoy the valuable benefits often available on cards with higher APRs instead.\nBut if you'll need to carry a balance on your credit card, then using a credit card with a lower APR can save you money on interest charges. Just keep in mind that the cards with the lowest APRs won't typically offer you competitive rewards for spending or other premium benefits. So you have to weigh the value of having a card with a low APR against the opportunity to receive other rewards and benefits to determine how important a low APR is to you. END
 TITLE: What Is a Good APR for a Credit Card? CONTENT: How to Compare Credit Card Interest Rates\n-----------------------------------------\nTo get the best rate possible, compare the interest rate of a credit card you're considering with other cards. For example, rewards credit cards will typically have higher interest rates than cards that don't offer rewards. Also, cards that are designed for people with lower credit scores will almost always have higher interest rates than those geared to applicants who don't have any credit problems.\nCredit cards often have several different APRs. For example, many credit cards have a 0% introductory APR or another lower-than-standard rate that applies for a limited time after the account is opened. Many credit cards also have higher APRs that apply to cash advances, or a penalty APR that's imposed when the account holder misses payments. Compare these rates on the cards you're considering. While the standard APR will be the most important consideration, it's still a good idea to familiarize yourself with all the various rates a credit card charges. END
 TITLE: What Is a Good APR for a Credit Card? CONTENT: How to Get a Good APR\n---------------------\nIf you want to get a credit card with a low APR, it's important to know where to look and what to look for. There are two types of credit cards that carry low APRs: 0% APR cards and cards with low ongoing APR.\nZero percent APR cards typically offer no interest on purchases, balance transfers or both for a set period, typically between six and 21 months. But once that promotion is over, your APR could jump to an above-average rate.\nA credit card with a 0% APR introductory rate is a solid choice if you need to finance a large purchase or pay down high interest credit card debt—and are confident you can pay the full balance before the promotion period ends and your rate spikes.\nAlternatively, a credit card with a low ongoing APR typically won't offer a 0% APR promotion. This may be a better option if you expect to carry a balance regularly.\nCredit unions typically offer lower interest rates than traditional banks, but they don't often offer long 0% APR promotions. Major issuers like Chase, Bank of America and Citi, on the other hand, offer credit cards with long 0% APR promotions but don't generally offer below-average APRs after the promotions are over. Experian CreditMatch™ can also pair you with low interest credit cards matched to your credit profile. END
 TITLE: What Is a Good APR for a Credit Card? CONTENT: How to Avoid Paying APR Altogether\n----------------------------------\nWhile you may want to make sure you have a good APR credit card, it's even more important to use your credit cards in a way so you avoid paying interest altogether.\nYou can do this by paying off your balance in full each month before the due date. Because credit cards typically offer a grace period between the statement date and due date—typically 21 days or more—you'll have plenty of time to pay your bill before interest begins to accrue.\nRemember, there's no benefit to carrying a balance on a credit card and paying interest. It doesn't help your credit any more than paying off your balance in full. Here are a few ways to ensure that you never pay interest on your credit cards:\n### 1\\. Avoid Spending More Than You Have\nWhile your credit card isn't directly tied to your checking account like a debit card, you can treat it like it is. Avoid spending more than you can pay off at any given time, preferably through current income rather than from savings.\n### 2\\. Get on a Budget\nIt can be hard to avoid overspending if you don't set any boundaries. Create a budget and set spending goals for each of your major categories. Then keep track of where your money is going to make sure you stay in line with your goals.\n### 3\\. Pay Early\nIf you always wait until the last day to make a payment, there may be times when you forget or don't have enough cash in your checking account to cover the debt.\nTo avoid any mistakes, consider paying off your balance as soon as your monthly statement closes, or make payments throughout the month while the statement is still open.\nAlternatively, consider setting up automatic payments so you don't have to even think about it. Just be sure you always have enough money in your checking account to cover the payment. END
 TITLE: What Is a Good APR for a Credit Card? CONTENT: The Bottom Line\n---------------\nIf you're going to pay interest on your credit card, then you should try to find one with a good APR. But in the long term, it's even better to avoid interest by paying your monthly statement balance in full whenever you can. END
 TITLE: Survey: The Impact of COVID-19 on Fraud and Identity Theft CONTENT: Majority of Survey Respondents Are Aware of Fraud Related to COVID-19\n---------------------------------------------------------------------\nWhile 16% of those surveyed reported receiving fraudulent emails or calls related to COVID-19, more than half of respondents (55%) said they have heard of a scam related to COVID-19. This heightened awareness illustrates the reality that scammers are taking advantage of our current crisis to exploit consumers. END
 TITLE: Survey: The Impact of COVID-19 on Fraud and Identity Theft CONTENT: Despite Fraud Concern, Online Shopping Is Up\n--------------------------------------------\nThough those we surveyed were aware of new COVID-19 related fraud, 33% reported doing more online shopping now than they did before. And while a spike in online shopping is understandable—much of the country is under orders to stay at home—as you share more personal information online, you become more exposed to the possibility of fraud.\nThe risk of fraud while shopping online is something most consumers we spoke with have taken to heart. In fact, 52% of those we surveyed said they were somewhat, very or extremely worried their bank account information could be stolen while shopping online. Another 54% were at least somewhat concerned that their online shopping accounts (like Amazon) will be hacked, and 57% at least somewhat worried generally that shopping online could result in a loss of personal data such as a Social Security number.\nAt the other end of the spectrum, nearly one-third (30%) of respondents said they were actually shopping online less in light of the COVID-19 crisis. This reduction could be the result of several factors, including economic hardship or the desire to protect against the possibilities of fraud during this period. END
 TITLE: Survey: The Impact of COVID-19 on Fraud and Identity Theft CONTENT: One-Third of Respondents Have Taken Steps to Protect Their Data\n---------------------------------------------------------------\nDespite heightened awareness of COVID-19 scams, 55% of survey respondents say they felt either very or extremely confident in their ability to protect against any fraud attempts. Another 42% said they felt somewhat confident or a little confident in protecting themselves, and 3% said they were not confident at all.\nIn terms of how respondents were planning to protect against fraud threats in the coming months, 61% of those surveyed said it's either very or extremely likely they'll be extra vigilant when confirming the legitimacy of calls, emails and letters they receive. In addition, 44% said it's very likely or better they will monitor their credit reports regularly and 20% said it's very likely or better they will subscribe to a credit or identity theft monitoring service. END
 TITLE: Survey: The Impact of COVID-19 on Fraud and Identity Theft CONTENT: Tips for Helping You Protect Against COVID-19 Related Fraud\n-----------------------------------------------------------\nWhile fraudsters are trying their best to take advantage of this tough period, there are many ways you can protect yourself to help make sure you don't fall victim to fraud during challenging times.\n*   **Be extra vigilant when receiving emails, calls or letters.** First, make sure to be extra vigilant of anyone asking for personal information in the coming months and avoid clicking on any suspicious links or attachments. Be careful when receiving emails, calls or letters that appear to be official notices, and always make sure to do research before engaging with anyone asking for your personal information.\n*   **Beware of IRS-related scams.** The IRS explicitly says it will not call you demanding immediate payment, and any in-person visitors will present multiple forms of identification so you can verify they are truly with the IRS. In the coming months, look out for calls, emails and letters purporting to be from the IRS; if any personal information is requested, think twice before handing it over.\n*   **Be extra cautious of online shopping.** If you're shopping online, always take steps to make sure you trust the website before you enter any personal information into a form. You can double-check domain names to make sure they are legitimate, and consider only entering personal data into sites you are already familiar with.\n*   **Check your credit reports often.** Checking your credit reports often will help you notice if any fraudulent accounts are opened in your name. If you see anything listed in your reports that shouldn't be there, file a dispute with one or all of the three main credit bureaus (Experian, TransUnion and Equifax) and contact the creditor listed to close the account as soon as possible.\n*   **Consider enrolling in an identity theft protection service.** Enrolling in an identity monitoring service can help protect you against the damaging impact of someone opening fraudulent accounts in your name. These services will help you detect fraud early on, and can help you kickstart the process of protecting your credit and finances from any theft.\nIf you want to stay on top of what's in your credit reports, you can get a free credit monitoring account from Experian so you can check your reports and scores every 30 days. If you're interested in identity theft protection, check out Experian's Identity Theft Protection service, and you can also get a free dark web scan to see if any of your private information is already exposed on the web. END
 TITLE: How Does Credit Card Interest Work? CONTENT: What's the Difference Between the Interest Rate and APR?\n--------------------------------------------------------\nSometimes you see the terms \"interest rate\" and \"APR\" thrown around interchangeably, but they're actually separate concepts in some contexts. For mortgages, car loans and other types of installment loans, the APR, or annual percentage rate, includes both interest and other charges such as points and fees. So your interest rate and APR on a mortgage, for instance, will slightly differ.\nBut when it comes to credit cards and other types of revolving credit accounts, the two terms mean the same thing: Your APR is your interest rate. Any additional credit card charges, such as annual fees and late fees, are not figured in to your APR. To find out more, see \"APR vs. Interest Rate: What's the Difference?\" END
 TITLE: How Does Credit Card Interest Work? CONTENT: Different Types of APRs on Credit Cards\n---------------------------------------\nIt would be easier to compare credit card APRs if each card had just a single rate. However, most cards have several different types of interest rates. For example, many cards offer a low introductory rate on new purchases, balance transfers or both that you can take advantage of when you are approved for the card. These are usually 0% APR, which differs from the standard rate that applies once the promotional rate ends.\nIn some cases there's a standard APR that applies to new purchases and a separate rate that applies to balance transfers. Then there's the APR for cash advances, which is typically higher than the interest on purchases. Thankfully, you can easily view all of these rates in a format that's easy to read. Credit card issuers are required to disclose these rates in a standardized table format called a Schumer box (see example below). END
 TITLE: How Does Credit Card Interest Work? CONTENT: How Is Credit Card Interest Calculated?\n---------------------------------------\nIt's not quick or easy to calculate your account's interest charges, but if you want to figure out yours, follow these steps:\n### 1\\. Calculate the Daily APR on Your Credit Card\nTo do this, divide the APR by 365 (the number of days in the year). So if your APR is 16%, then 0.16 \/ 365 = 0.00044 is your daily periodic rate.\n### 2\\. Calculate Your Average Daily Balance\nRemember, your interest is assessed on your average daily balance. So you have to figure out what that is. To do so, you'll have to look back at your statement.\nStart with the unpaid balance—the amount of money you carried over from the previous month's statement. Next, go through your statement to determine what each day's balance was. Note: Your credit card won't tell you your daily balances for the month; you'll need to do it yourself by adding or subtracting individual charges for each date of the billing cycle as they appear on your statement. Add up each daily balance amount and divide it by the number of days in your credit card's billing period. That's your average daily balance.\n### 3\\. Multiply Your Daily Periodic Rate by Your Average Daily Balance\nNow, multiply the daily periodic rate calculated in step 1 by the average daily balance from step 2.\nLet's say your average daily balance came out to $1,200. The calculation would be: 0.00044 x $1,200 = $0.53\n### 4\\. Multiply by the Number of Days in Your Billing Cycle\nFinally, you have to multiply the figure from step 3 by the number of days in your billing cycle.\nIf your billing cycle was 30 days, then you multiply $0.53 by 30 to equal $15.90. You will be charged approximately $15.90 in interest for this billing cycle.\n### 5\\. Factor In Daily Compounding\nMost credit card issuers will compound an account's interest charges daily. That means it will actually multiply each day's average daily balance by the account's daily periodic rate, and then add that amount to the next day's average daily balance.\nTo determine this manually would be extremely time-consuming. Thankfully, the effects of daily compounding are relatively minor over the course of a single month, so you'll get a pretty good estimate from the amount you arrive at in step 4. However, the higher the interest rate, the greater the effect daily compounding will have on the final amount you'll be charged in interest in a given month. END
 TITLE: How Does Credit Card Interest Work? CONTENT: How to Avoid Paying Credit Card Interest\n----------------------------------------\nOf course, none of these interest rate calculations are relevant if your card issuer waives the interest charges. Nearly all card issuers won't impose interest charges when the entire statement balance is paid in full on or before the due date. The period of time between the statement closing date and the due date is called a grace period.\nTechnically, interest charges apply during this period, but they are waived if the entire balance is paid in full and on time. By law, credit cards that offer a grace period must give you at least 21 days to avoid interest by paying your balance in full. For more information, see \"What Is a Good APR for a Credit Card?\" END
 TITLE: How Does Credit Card Interest Work? CONTENT: The Bottom Line\n---------------\nCalculating credit card interest may be of interest to some, but just understanding how it works is probably more important. When you realize the factors that affect your credit card's interest charges, you can begin to make the right decisions to minimize or avoid these charges altogether. END
 TITLE: How Your Credit Card Can Protect You When You Travel CONTENT: Rental Car Insurance\n--------------------\nIf you've ever rented a car, then you've probably experienced the hard sell when you've picked up the keys. This is when the staff implores you to pay $20 to $30 extra per day to insure the car you're picking up. But that's like paying $7,300 to $10,950 a year to insure a car. This is outrageous, especially considering that most major credit cards offer rental car insurance at no cost. To take advantage of your credit card's rental car insurance, all you have to do is pay with an eligible card and decline the optional coverage. Just note that these policies can have restrictions on the type of card and the locations where the coverage is eligible, so check with your card issuer to be sure.\nThe best type of coverage is primary, which doesn't require you to file a claim with your personal insurance. For example, the Chase Sapphire Preferred® Card offers primary rental car coverage. END
 TITLE: How Your Credit Card Can Protect You When You Travel CONTENT: Trip Delay Coverage\n-------------------\nOne of the largest unexpected travel costs can happen when your travel plans are disrupted. Some airlines will pay a portion of your expenses, when the reason for delay is within their control. But you're often on your own when there's bad weather or when you're flying a budget airline. If your credit card has trip delay coverage, then you can have your expenses reimbursed.\nFor example, coverage is valid when you are delayed by a common carrier; your passport, money or other documents are stolen; or you aren't able to board because of overbooking. This kind of coverage can also help when there's a delay due to bad weather, a natural disaster, a strike, a quarantine or hijacking.\n> Find the best airline credit cards in Experian CreditMatch™. END
 TITLE: How Your Credit Card Can Protect You When You Travel CONTENT: Trip Cancellation and Interruption Coverage\n-------------------------------------------\nThere's no way to know when some strange or tragic event will cause you to cancel your trip, or return home immediately from a trip you're already taking. Thankfully, trip cancellation and interruption coverage can reimburse you for non-refundable expenses. Coverage varies depending on the card, but it can apply to cancellations and interruptions caused by things like illness, death of the traveler or family member, severe weather or natural disasters. Credit cards that offer this protection include the Chase Sapphire Preferred® and The Platinum Card® from American Express. This coverage is also available on the Barclaycard Arrival Plus® World Elite Mastercard® and the Luxury Card™ Mastercard® Titanium Card™. END
 TITLE: How Your Credit Card Can Protect You When You Travel CONTENT: Baggage Delay Insurance\n-----------------------\nHave you ever found yourself waiting at baggage claim until the last bag has come and gone? When the carousel stops, it starts to sink in that your bag is missing. The airline may offer to reimburse you for your expenses while you wait for your bag, but that doesn't always happen. Baggage delay insurance offered by many credit cards will cover you if the airline doesn't. This coverage typically offers you $100 a day for delays of over six hours, in addition to compensation the airline offers, if any. A card with this benefit is the Chase Sapphire Preferred® Card.\n> Find the best airline credit cards in Experian CreditMatch™. END
 TITLE: How Your Credit Card Can Protect You When You Travel CONTENT: Emergency Assistance\n--------------------\nThere's no telling what can happen to you when you are traveling, especially in a foreign country. So it's nice to know that most credit cards have a service that assists you in the event of an emergency. For example, your card's 24\/7 hotline could offer you medical and legal referrals or security and safety advice. The Discover Card's Travel Assistance service can even help you replace prescriptions and eyewear, advance medical expenses, or relay messages to your family in an emergency. END
 TITLE: How Your Credit Card Can Protect You When You Travel CONTENT: Roadside Dispatch and Assistance\n--------------------------------\nWhether you're driving your own car or renting a car, your credit card can be a resource when you need help. Many credit cards offer roadside dispatch, which will send help when your car breaks down or runs out of gas, or if you get locked out. If the benefit just covers roadside dispatch, then you'll be responsible for payment of any services you receive. But some premium cards offer a complete roadside assistance benefit that includes the cost of many minor services. END
 TITLE: How to Save Money for Your Kids CONTENT: Ways to Start Saving Money for Your Kids\n----------------------------------------\nOf course, saving money for your kids isn't always as easy as it sounds. The many life adjustments that go into having a baby—disrupted work, medical expenses, diapers—make early parenthood a difficult time to sock away money. Unfortunately, this trend can continue well into childhood and beyond: Raising kids is an expensive proposition. But if you can put even a small amount into savings regularly for your child, you can create a growing nest egg and a savings habit that will serve your family well. When your child is old enough to have their own savings, opening a basic children's savings account is a great way to get them started.\nIn addition to regular savings, consider these ideas for upping your savings game:\n*   **Set up a trust fund.** If you expect to pass along money to your children as an inheritance, establishing a trust and transferring assets such as real estate and investments into it can help keep your assets out of probate when you pass. If you're interested in creating a trust, learn more about the process and consider hiring an attorney to help you set it up.\n*   **Start an investment account.** You can open a custodial account in your child's name under the Uniform Gifts for Minors Act (UGMA) or Uniform Transfers for Minors Act (UTMA). With a custodial account, your child owns the assets but you (or a designated custodian) retain control over the money until your child reaches the age of majority. One caveat: UGMA\/UTMA accounts can make it more difficult for your child to qualify for financial aid when they reach college age, since these funds typically count as student-owned assets. Alternatively, you can contribute to your own taxable investment account with an eye toward building reserves you can use to pay for college or help your kids out later in life.\n*   **Open a Roth IRA in your child's name.** A Roth IRA is an individual retirement account that's funded with after-tax dollars. Though you don't get a tax deduction when you contribute to a Roth, your earnings are tax-free and so are your qualified distributions. There is no minimum eligibility age to open a Roth IRA, but your child must have earned income to make a contribution and the contribution cannot exceed their earned income for the year. Still, if you contribute $1,000 to your teen's Roth IRA this year and it earns an average of 7% annually, it will be worth more than $29,000 when they retire in 50 years. END
 TITLE: How to Save Money for Your Kids CONTENT: According to the College Board, the average tuition at a four-year private college reached $37,650 for the 2020-2021 school year; $10,560 at an in-state public university. Add in room and board and multiply by four years, and it's clear why saving for college is a huge financial challenge for parents.\nIf you haven't already started an education fund for your child, consider starting one now. The more time your money has to compound and grow, the better. And given the enormous cost of a college education, it helps to pay into a college fund over multiple years to help avoid diverting money from your retirement or emergency funds to pay for tuition. The following strategies may help you get started. END
 TITLE: How to Save Money for Your Kids CONTENT: How to Build Your Child's Credit\n--------------------------------\nIn addition to helping your kids save, you may want to help them learn about and establish credit. There's no hard and fast rule on when your child should begin building credit, but the years following high school graduation may be a good time to start.\nThere are multiple ways for young adults to get started. Secured credit cards require a security deposit that is used to pay off debt if a cardholder defaults. Student credit cards offer a modest credit line and a range of benefits to give new credit users a start. You may also consider adding your minor child to your credit card account as an authorized user. They'll begin to develop a credit history, though you'll be responsible for paying the bill.\nWhat's equally important is helping your child understand credit: what it is, how it works and how to cultivate it. By stressing the importance of responsible spending and paying every bill in full and on time, you can help instill successful credit habits. Once your child opens a credit account, or becomes an authorized user on your account, they'll get their own credit report. Download a free copy, along with their credit score, and show them how to access that information regularly to check their progress—and spot any early signs of identity theft. On that note, you may also want to check your child's credit file periodically even before they start their credit journey to make sure identity thieves haven't stolen their information and opened accounts in their name. END
 TITLE: How to Save Money for Your Kids CONTENT: How to Teach Your Kids to Be Responsible With Money\n---------------------------------------------------\nIt's great to save money on your children's behalf, but it may be even more crucial to teach them how to save, budget and manage money themselves. Teaching your kids about finance is a lifelong project. You can begin by modeling healthy spending and saving. Though many of us were raised to be reticent about discussing finances, talking to your kids about money can be groundbreaking. The more they know about how much it takes to fund your daily life, how you manage to save for a vacation, how investments work and why savings are a buffer against stress, the better equipped they'll be to take on life's many financial challenges.\nSaving for your kids is a great gift. But ultimately, it grows out of your ability to save for the things that matter to you: educating your children, providing for your own retirement and building the resources your family needs to thrive. By demonstrating the habit of saving and setting money aside methodically toward your goals, you'll give your children the gift of insight along with the dollars you've saved. END
 TITLE: Who Accepts American Express? CONTENT: Where Can You Use the American Express Card?\n--------------------------------------------\nAmerican Express offers many types of credit cards for both consumers and small business owners. Yet sometimes you'll encounter merchants that accept Visa, Mastercard and Discover, but don't take American Express cards. Nevertheless, American Express has been aggressively adding new merchants to its network in recent years, including over 1.6 million new U.S. locations in 2018. For more information, see \"Where Can I Use My Credit Card?\" END
 TITLE: Who Accepts American Express? CONTENT: Why Isn't American Express Accepted Everywhere?\n-----------------------------------------------\nIf you have an American Express card, then you may have visited merchants who accept other credit cards, but not your Amex. The reason has to do with the interchange fees charged by the credit card payment networks such as Visa, Mastercard, Discover and American Express. These fees are a percentage of each credit card transaction that a merchant has to pay to the payment network. American Express imposes a slightly higher fee than its competitors, and some merchants choose not to accept its cards as a result. END
 TITLE: Who Accepts American Express? CONTENT: Why American Express Is More Expensive for Merchants\n----------------------------------------------------\nSo why does American Express charge merchants more than Visa and Mastercard? American Express is both a payment network and a major credit card issuer. Credit card issuers primarily make money through interest charges and a portion of the interchange fees.\nMany American Express cards are actually not credit cards but charge cards. That means that the cardholder is required to pay the entire statement balance in full each month, so Amex typically receives no interest charges from these products. Furthermore, American Express cards almost always provide competitive rewards in the form of cash back or miles and points toward travel rewards. With both the higher costs of offering rewards and less income from customers paying interest, American Express' business model relies on charging merchants higher interchange fees. END
 TITLE: Who Accepts American Express? CONTENT: Why You Should Always Have a Backup Credit Card\n-----------------------------------------------\nIf you primarily use an American Express card, then you should probably carry a backup card from a different payment network for when you encounter a merchant that doesn't accept American Express. But regardless of which card you use, it's always a good idea to have one or more backup credit cards. For example, your primary card could become lost, stolen or compromised in some way, leaving you without a credit card until it's replaced. Having more than one card that you manage responsibly can also add to your positive credit history and improve your credit score.\nAmerican Express cards are accepted by millions of merchants, but not at every store that accepts credit cards. While you're likely to find that the vast majority of stores you visit will accept your Amex card, there are several reasons that you should still carry a backup card. By understanding how credit cards work, and why Amex isn't as widely accepted as cards from other payment networks, you can make sure that you always have the right cards to make the purchases you need. END
 TITLE: What Is Visa Checkout? CONTENT: How Visa Checkout Works\n-----------------------\nTo use this service, you first need to sign up for a free Visa Checkout account. You'll start by entering your name, email address and country, and creating a password. After you've enrolled, you can enter the account information for your Visa credit cards. Once entered, you won't have to re-enter the information every time you make a purchase from a participating retailer.\nWhen you are making a purchase from a participating online retailer, you'll see a small login screen for Visa Checkout. Instead of filling out all of your credit card account information, you can simply log in and choose the Visa card that you want to pay with, and it will populate your account information on the retailer's page. When you're using a mobile app, you have the option of using Visa Checkout within the retailer's app without the need to download a separate app. END
 TITLE: What Is Visa Checkout? CONTENT: Benefits of Using Visa Checkout\n-------------------------------\nThe best reason to use Visa Checkout is for the convenience. With this service, you can enter your credit card information once, and then use it every time you shop at online retailers that accept Visa cards. You can even enter multiple credit and debit cards, as long as they are part of the Visa payment network. As a result, you can save a significant amount of time completing many of your online transactions.\nAnother benefit is security. Visa Checkout offers a standard set of security protections that you can utilize, rather than relying on the safety of each retailer's website. Visa Checkout members can also receive special deals and other offers from online stores that accept it. END
 TITLE: What Is Visa Checkout? CONTENT: How Is Visa Checkout Different From a Virtual Credit Card?\n----------------------------------------------------------\nA virtual credit card is a service offered by some credit card issuers that allows you to create a unique card number for an individual transaction. Each virtual credit card number can only be used once, eliminating the possibility of fraud if the number is compromised in any way. And while virtual credit card numbers can be useful, they are not the same as Visa Checkout. With Visa Checkout, you are using a traditional credit card number that Visa is storing securely for use in multiple transactions. END
 TITLE: What Is Visa Checkout? CONTENT: Where Can You Use Visa Checkout?\n--------------------------------\nMany online stores offer Visa Checkout including stores that offer apparel, electronics, travel, food, entertainment and gifts. Popular participating retailers include Walmart, Best Buy, Walgreens, Marriott and Starbucks. You can view Visa's directory to see a full list of websites that currently accept Visa Checkout.\nOnline shopping is often more convenient than visiting a store, but it's not without its hassles. When you use Visa Checkout to input your credit card information, you can complete your purchases faster than you might have thought possible. END
 TITLE: How to Compare Credit Card Interest Rates CONTENT: Understanding APRs and Interest Rates\n-------------------------------------\nCredit card interest rates are expressed in terms of APR, which stands for Annual Percentage Rate. This is the interest rate expressed in terms of a year. There's no difference between a card's interest rate and its APR. A year is just a standard unit of time used to measure interest rates, like the term \"miles per hour\" is used to represent speed. END
 TITLE: How to Compare Credit Card Interest Rates CONTENT: Where You Can Find Credit Card Interest Rates\n---------------------------------------------\nAs you drive down the street, it's pretty easy to compare the price of gas between different service stations. Every gas station displays its current price per gallon for each grade of fuel, and you know that it will always be the price that you'll pay at the pump.\nUnfortunately, it's not as easy to compare credit card interest rates. You won't find these rates on large signs outside of your bank, and you'll even have to search a little to find all of the rates online. And when you do find a card's terms and conditions online, you'll see several interest rates, each for a different type of balance.\nWhen you're shopping online for a new credit card, you need to look for a link to its terms and conditions, which is sometimes labeled Rates and Fees. By law, financial institutions are required to provide this information in a standardized table. In fact, even the size of the typeface is regulated, so that credit card issuers can't bury this important information in fine print. This table is often called a Schumer Box after New York Senator Charles Schumer, who championed the provision requiring it. The first part of this table will be titled Interest Rates and Interest Fees, and it will have several sections.\n#### Schumer Box Example END
 TITLE: How to Compare Credit Card Interest Rates CONTENT: How to Calculate an Interest Rate on a Credit Card\n--------------------------------------------------\nWhile it's not that hard to find a credit card's interest rate, it will take a little work to calculate the interest charges for a particular card. First, you have to determine the card's daily periodic rate by dividing the APR by 365 (days in the year). Next, you'll need to calculate your account's average daily balance. That's the total of the daily balances that you had on each day of your statement, divided by the number of days on your statement.\nNext, multiply the account's average daily balance by the daily periodic rate. Finally, multiply it by the number of days in the billing cycle. For example, let's say that you have an account with an APR of 15% and an average daily balance of $1,000. Your daily periodic rate will be 15% divided by 365, or 0.00041. If you multiply your periodic daily rate (0.00041) by your average daily balance of $1,000, you'll get $0.41. Essentially, you're incurring 41 cents of interest per day on your $1,000 average daily balance. Multiply that by the number of days in the billing cycle, and you'll have your monthly interest charges. So if you have 30 days in this month's statement cycle, then you'll incur about $12.33 in interest charges each month.\nThat is, until you factor in compounding interest daily. Most credit card issuers will add interest charges from the previous day into the next day's balance. This will have a small but significant effect of incurring even more interest charges, as your account's daily balance will increase by adding interest on the previous day's balance. For more information, see \"How Does Credit Card Interest Work?\" END
 TITLE: How to Compare Credit Card Interest Rates CONTENT: ### Purchase Annual Percentage Rate\nAt the top of this table will be the interest rate for purchases, often referred to as the Purchase Annual Percentage Rate (APR). This is the interest rate that applies to all the purchases that you make with your card. With many credit cards, the first number you see will be a promotional rate, which is only available for a limited amount of time. For example, a credit card may offer \"0% intro APR for the first 15 billing cycles that your account is open.\" Below that introductory rate, it will show the standard interest rate for purchases, which only applies to your existing balance after the introductory rate expires.\n### Balance Transfer Annual Percentage Rate\nBeneath the purchase rate you see will see the rate for balance transfers, also called the Balance Transfer APR. This is the rate that will apply to any balance that you transfer from another credit card. Here as well, you could have a 0% introductory rate, followed by a standard rate.\n### Cash Advance Annual Percentage Rate\nNext will be the Cash Advance APR, which is the standard interest rate that applies to any cash you access through an ATM or bank, and some other cash-like transactions.\n### Penalty Annual Percentage Rate\nA penalty APR is a much higher interest rate that only applies when you make a late payment. A card's terms might list a Penalty APR, and explain when it would apply. Rather than trying to compare penalty interest rates between cards, it's best to try to avoid ever being charged a penalty interest rate to begin with. But if you feel that you may still incur the penalty interest rate, then you can look for one of a growing number of cards that no longer have penalty interest rates at all.\n### Specific Interest Rates Versus Ranges of Rates\nWhen it comes to a card's standard interest rate, or APR, some credit cards simply offer a single number that makes it very easy to compare. When a single rate is listed, all account holders will receive that rate once their application is approved.\nBut increasingly, many credit card issuers are listing a range of rates, along with the explanation that the rate you receive will be based on your creditworthiness when you open your account. For example, a card may offer a standard interest rate for purchases of 13.99% to 23.99%. This means that if you have an excellent credit history, then you might qualify for a rate as low as 13.99%, while those with fair or average credit may receive a rate as high as 23.99%.\nYou might also see a range of rates, rather than a single APR, for balance transfers and cash advances too. Finally, there are some cards that might offer three or four possible rates, with the one you receive being dependent on your creditworthiness when you applied. END
 TITLE: How to Compare Credit Card Interest Rates CONTENT: How to Compare Credit Cards With a Range of Interest Rates\n----------------------------------------------------------\nThe problem with credit cards that offer a range of interest rates is that you'll never know which rate you will receive until after you've been approved for the card. But if you're comparing two cards that offer a range of interest rates, then you'll typically receive a lower interest rate from a card that offers a lower range of rates than a competing card, as your creditworthiness will determine what rate you receive within the range.\nFor example, a card may offer rates between 13.99% and 19.99%. If you have good but not excellent credit, then you might expect to receive a rate in the middle of perhaps 16.99%. However, you would probably receive a lower rate from a competing card that offers rates between 10.99% and16.99%. END
 TITLE: How to Compare Credit Card Interest Rates CONTENT: Variable Rates\n--------------\nYears ago, credit card issuers marketed products with so-called fixed rates. However, card issuers were able to increase these rates at their discretion, which was seen as deceptive. The Credit CARD Act of 2009 now prohibits card issuers from raising rates on cards that promised a fixed rate. As a result, nearly all banks and credit unions now offer rates that are called variable interest rates, rather than fixed. These rates can rise and fall with the prime rate, which is based on the federal funds rate set by the Federal Reserve Bank. This means that the interest rates for nearly all credit cards can potentially rise or fall together, based on monetary policy changes. Fortunately, these changes are usually just a quarter of a percentage point each. END
 TITLE: How to Compare Credit Card Interest Rates CONTENT: How Your Credit Score Affects Your Interest Rate\n------------------------------------------------\nYour credit score is a number, based on your credit history, that's designed to estimate the likelihood that you'll repay a loan on time. The higher the number, the more creditworthy you are deemed to be. Instead of offering different cards for people with different levels of creditworthiness, credit card issuers often design cards with a range of interest rates. The rate you receive will vary based on your credit score, but it will always fall within the range listed in the card's terms and conditions.\nFor example, a card might list standard interest rates of 17.24% to 25.99%, based on the applicant's creditworthiness, and may only be only offered to applicants with good or excellent credit. If an applicant has a credit score of 670, which is at the lower end of the \"good\" score range, then he or she might receive the 25.99% APR. But an applicant who has an excellent credit score of 800 or above might receive the 17.24% APR. END
 TITLE: How to Compare Credit Card Interest Rates CONTENT: How to Get a Low Interest Credit Card\n-------------------------------------\nIf your first priority is to get a credit card with the lowest possible interest rate, then you need to deprioritize other features and benefits. For example, credit cards that offer rewards will invariably have a higher standard interest rate than similar cards that don't have rewards. In fact, the cards with the lowest possible standard interest rates will often be the most simple cards with fewer features and benefits than other cards. For more information, read our post on \"What Is a Low Interest Credit Card?\" And to compare low interest cards, see Experian CreditMatch™, which matches credit cards to your credit profile. END
 TITLE: How to Compare Credit Card Interest Rates CONTENT: Compare Interest Rates When Credit Card Shopping\n------------------------------------------------\nAbout half of all Americans who use credit cards will incur interest rates by carrying a balance at least some of the time. For these people, it's important to compare interest rates between different credit cards before choosing which one to apply for. Finding the lowest credit card interest rates will never be as easy as spotting cheap gas, but by understanding where to find the rates, and how to compare them, you can choose the best credit card for your needs. END
 TITLE: Can I Get a Credit Card After Bankruptcy? CONTENT: How Bankruptcy Affects Credit\n-----------------------------\nA bankruptcy filing is the most severe negative event that can appear in a credit report, and it can do deep, long-lasting damage to your credit scores.\nA Chapter 7 bankruptcy, which eliminates all your debts, stays on your credit report for up to 10 years. A Chapter 13 bankruptcy, which restructures your debts and provides creditors partial repayment, will remain on your credit report for up to seven years.\nWhen you file for bankruptcy, the best your creditors can expect to collect is a fraction of the money you owe them. (In a Chapter 7 filing, creditors may get nothing at all.) It's understandable, then, that bankruptcy typically makes lenders wary of issuing you new credit. Some lenders turn down any credit applicant with a bankruptcy on their credit report. Other lenders will consider applicants with older bankruptcy entries, but typically charge high interest rates and fees because they consider bankruptcy filers risky borrowers.\nAs long as a bankruptcy appears on your credit reports, it will tend to lower your credit scores. But its impact on your scores will diminish over time. Credit scoring models such as those from FICO and VantageScore® give new information greater weight than older information, so adopting good credit habits can help you start rebuilding your credit scores, even immediately after you've filed for bankruptcy.\nKey steps to improving credit scores, after bankruptcy or under any other circumstances, include avoiding excessive debt and high card balances and, most importantly, establishing a record of steady, on-time debt payments on your credit reports. So how do you rack up steady payments if bankruptcy has made lenders reluctant to work with you? The key is to focus on credit cards for people with less-than-ideal credit, or even cards that require no credit at all. END
 TITLE: Can I Get a Credit Card After Bankruptcy? CONTENT: Your first step toward getting a credit card after bankruptcy should be checking your credit report and credit score so you know where you stand when researching various cards' approval requirements. If, like many others who file for bankruptcy, you have credit reports that include late or missed debt payments, maxed-out credit cards, or accounts that have been turned over to collections agencies, your credit scores may have dropped into the fair or poor credit range even before taking a hit from the bankruptcy. While that may make it tough to get a conventional credit card or loan, there are strategies that can help you start rebuilding credit following a bankruptcy.\nWhen looking for the right credit card, your best bet will likely be a secured credit card, which requires you to put down a cash deposit. The deposit amount typically equals the card's borrowing limit, and if you fail to pay your card balance as agreed, the card issuer can take your deposit to cover the debt. Otherwise, a secured card works the same as a conventional card: You can make purchases up to the borrowing limit, repay them over time as long as you make a minimum monthly payment, and you'll be charged interest on any unpaid balance you carry forward month to month.\nSecured cards you may be able to qualify for after a bankruptcy discharge include:\n*   The Merrick Bank Double Your Line® Secured Visa® Card assigns you a $200 borrowing limit when you put down a $200 deposit. The variable interest rate is 17.45%, and the card has an annual fee of $36. If you make seven months of on-time payments, Merrick Bank automatically raises the card's borrowing limit to $400, without requiring an additional deposit.\n*   The Secured Mastercard® from Capital One assigns you a $200 borrowing limit when you put down a refundable deposit starting at $49. The card charges no annual fee and has a variable interest rate of 26.99%. You'll automatically be considered for a higher credit line with no additional deposit in as little as six months.\nThe chief advantage of secured cards is that they usually have lower interest rates and fees than unsecured cards designed for people with poor credit. The main disadvantage of secured cards is low borrowing limits that restrict the types of purchases you can make. But when you're rebuilding credit after bankruptcy, that can also be seen as an advantage: Low spending limits can make it relatively easy to pay your balance in full each month.\nBorrowing limits on unsecured cards for users with poor credit tend to be low as well. The chief advantage of unsecured cards is that they don't tie up any of your cash in the form of a deposit—and if you can manage to keep balances low enough to pay off in full every month, you'll avoid interest charges, so their high interest rates won't matter much.\nExamples of unsecured cards available to individuals with credit scores of 579 or lower include:\n*   The Destiny® Mastercard® from Genesis FS Card Services offers a $300 borrowing limit with no deposit at an annual interest rate of 24.90%, and charges an annual fee of $75 the first year ($99 thereafter).\n*   The Total Visa® Unsecured Credit Card issued by the Bank of Missouri offers a $300 borrowing limit with no deposit, at an annual interest rate of 34.99%. The card charges an $89 program fee, a $75 annual fee for the first year ($48 thereafter), and a monthly maintenance fee of $6.25 after the first year.\n*   The Milestone® Gold Mastercard® from Genesis FS Card Services offers borrowing limits of $300 and up, at an interest rate of 24.90%. The annual fee ranges from $35 for the most qualified applicants to $75 for the first year (and $99 thereafter) for qualifying applicants with the poorest credit. The card's borrowing limit and annual fee aren't set until you've applied. END
 TITLE: Can I Get a Credit Card After Bankruptcy? CONTENT: Tips for Using Credit Cards After Bankruptcy\n--------------------------------------------\nBankruptcy is a painful process but can be a meaningful way to gain a clean slate on your finances and a chance to rework your approach to credit management. If you resolve to keep credit purchases at a level you can pay off quickly, and avoid excessive debt, your credit standing and credit scores should gradually but steadily improve. Paying your credit card balance in full every month will also help you avoid interest charges and costly late fees.\nEven more important is to pay your credit card bills on time. Payment history is the most significant factor that determines your FICO® Score☉ , so steady on-time payments will help increase your score, while late or missed payments can seriously lower them.\nMost credit card issuers offer tools to help you avoid late payments, such as email and text alerts, and the ability to schedule automatic payments every month. Taking advantage of these tools, or using any other method that reminds you to pay your bills on time—smartphone reminders, sticky notes, a desk calendar—can be vital to rebuilding credit after bankruptcy. END
 TITLE: Can I Get a Credit Card After Bankruptcy? CONTENT: How to Build Credit After Bankruptcy\n------------------------------------\nOnce your bankruptcy is discharged and you've opened a new credit account that you manage responsibly, there are still other steps you can take to help rebuild your credit after bankruptcy:\n**Become an authorized user.** If you don't qualify for an unsecured credit card, and cannot afford a secured card, you may be able to begin accumulating a positive payment history as an authorized user on a friend's or family member's credit card account. The account will appear on your credit reports, but the primary cardholder is responsible for making payments to the card issuer. If the primary user has stellar credit and makes all payments on time, your credit scores are likely to improve; if the primary user has a record of late payments or a large amount of debt, however, that won't do your scores any good.\n**Consider a** **credit-builder loan****.** These are small personal loans, most commonly offered by credit unions, specifically designed to help people improve their credit. The financial institution issues you a small loan—typically a few hundred dollars or up to $1,000—and places that sum in a special interest-bearing savings account in your name. You cannot touch that money until you pay off the loan in full, by making regular monthly payments, typically for a period of no more than 12 months.\nWhen you've paid off the loan (with interest), the money in the savings account is yours. Assuming you make all your payments on time, you'll have accumulated a series of positive payment entries on your credit reports, which will tend to increase your credit scores. If you're considering a credit-builder loan, make sure the lender reports payments to all three credit bureaus (Experian, TransUnion and Equifax) so your positive payment history benefits all your credit reports.\n**Monitor your credit reports and credit scores.** Checking your credit as it improves can help motivate you to keep managing your finances responsibly. In addition, it can also alert you to suspicious activity on your credit accounts—a possible warning sign of fraud and identity theft.\nYou can check your credit reports from all three credit bureaus for free at AnnualCreditReport.com. You can also sign up for free credit monitoring with Experian, which allows you to check your Experian credit report and FICO® Score, as well as get alerts when any suspicious activity appears on your report.\nBankruptcy is a major event that can have negative consequences for many years, but millions have successfully moved past it, and you can too. If you obtain credit as soon as possible after your bankruptcy and take care to use it wisely, you can begin rebuilding your credit quickly, and get back on your feet sooner than you might imagine. END
 TITLE: 6 Steps to Financially Prepare Before Having Kids CONTENT: 1\\. Create a Baby Budget\n------------------------\nBefore your child arrives, do your research and get a sense of the costs you'll be facing. For starters, talk to your health insurance provider to understand how much you'll be on the hook for with the hospital bill, since labor and delivery can be expensive even with coverage. You don't want to be blindsided by an unexpectedly expensive medical bill.\nThen get a sense of ongoing costs, including diapers, clothes, bottles or formula, daycare and any other anticipated near-term expenses that you will need to integrate into your budget. For some of the larger items, such as car seats and strollers, consider putting them on a registry so family and friends who want to contribute can.\nIf you can get an accurate idea of some of the expenses in advance, you can better prepare. It might mean cutting some current costs to make room for new ones. It could also mean spending less so you can set aside more savings and create a buffer. END
 TITLE: 6 Steps to Financially Prepare Before Having Kids CONTENT: 2\\. Increase Your Emergency Savings\n-----------------------------------\nOn that note: The majority of Americans lack any significant savings, which makes it easy to slip into debt when unexpected expenses crop up. And kids are full of surprises! Even if you have debt you're working to pay off, try to set aside a little every month so you have a cushion and can handle emergency expenses.\nIt's ideal to save at least three to six months of living expenses in an emergency fund so you don't have to rely on credit cards or other forms of debt if the car breaks down, you or your spouse gets laid off, or any other unexpected events occur. Some banks allow you to set up automatic transfers from checking to savings accounts so you don't even have to think about it, or you could use an app like Digit that automatically moves small amounts of money into savings with the goal of you not noticing it. END
 TITLE: 6 Steps to Financially Prepare Before Having Kids CONTENT: 3\\. Start Saving for College\n----------------------------\nIt might seem premature to start thinking about college when you're worried about finding daycare. But with the costs of higher education ever-increasing, it's smart to get a head start on saving for your children's higher education now. The sooner you start, the more your money will grow over time due to compounding interest, so you don't even need to aside that much each month to make a big difference by the time your child graduates high school.\nThere are several different types of college savings accounts and plans, but one of the most popular is a 529 savings plan. These accounts come in several different flavors; some let you set aside money that grows tax-free and can be withdrawn tax-free for education, and others allow you to prepay tuition at today's rates. END
 TITLE: 6 Steps to Financially Prepare Before Having Kids CONTENT: 4\\. Consider Disability and Life Insurance\n------------------------------------------\nOnce you have kids, your household's monthly expenses will increase. If you don't have disability insurance through your job and something happens to you, your family might struggle to pay the bills. This coverage protects you by giving you a portion of your income to help your family make ends meet while you're unable to work.\nAs you start a family, also consider investing in life insurance, so if you pass away, your spouse and children have some financial security. This is especially important to consider if your family is somewhat or fully dependent on your income. Keep in mind that life insurance is typically cheaper to purchase the younger you are. END
 TITLE: 6 Steps to Financially Prepare Before Having Kids CONTENT: 5\\. Know Your Credit\n--------------------\nBefore having kids, it's also a great idea to check your credit to know where you stand. Having good credit makes it easier to get approved for and get favorable rates on auto loans, mortgages and credit cards. Employers and landlords also typically check credit to make sure you have a track record of responsibility. Your credit is also sometimes run when you're applying for cell phones, cable service and other utilities.\nTo help ensure your family's financial stability, stay on top of your credit and work to improve your credit score, if necessary. END
 TITLE: 6 Steps to Financially Prepare Before Having Kids CONTENT: 6\\. Utilize Workplace Benefits\n------------------------------\nIf you get benefits through your job, make sure to familiarize yourself with them and take advantage of whichever ones make sense since they can help your family financially. For example, consider setting aside money in a flexible spending account (FSA), if your employer offers one, which allows you to save pre-tax dollars for medical expenses. You can also put aside money in a dependent care FSA, which allows you to set aside tax-free money for childcare and preschool.\nIf your employer offers a 401(k) retirement account, contribute to it. It might be difficult to save for retirement in addition to all your other expenses, but setting aside even a little bit each month will help your nest egg grow over time. It will also take financial pressure off your kids so they won't have to worry about you in your older years. You should especially consider contributing if your employer offers a 401(k) match—it's free money!\nLastly, make sure you add your new baby to your health insurance soon after they're born so they can be covered for all of their health care needs. END
 TITLE: 6 Steps to Financially Prepare Before Having Kids CONTENT: Get Prepared\n------------\nStarting a family can be incredibly exciting, but it can also be overwhelming and expensive. Reduce your stress and the impact of surprises by preparing as much as possible. There are some things you'll never be ready for when it comes to parenting. But by saving, planning ahead, getting insured and working to improve your credit, you can be financially ready for kids. Well, as ready as one can be! END
 TITLE: How to Prevent Medical Identity Theft CONTENT: Medical identity theft refers to a form of identity theft that occurs when someone uses your name, Social Security number, health insurance number and other personally identifiable information (PII) to receive medical services or purchase medical products. Medical identity theft can look like:\n*   Someone using your PII to get medical procedures, such as surgeries or tests, and having the bill sent to you or your insurance provider.\n*   Someone using your PII to purchase prescriptions or medical equipment.\n*   A health care provider using consumers' PII to file fraudulent insurance claims.\nAs with non-medical identity theft, dealing with the repercussions can be a confusing, time-consuming and costly process. But medical identity theft can also be more dangerous than other forms of identity fraud because it can lead to errors in your medical records.\nIt's not hard to imagine the mistakes that can happen when someone is rushed to the emergency room and their medical record has an incorrect blood type listed or doesn't show the correct allergies. Victims may also find they're denied coverage or treatments due to the fraud. In some cases, police have even issued arrest warrants for the victims because the identity thief used their information to purchase large quantities of prescription medications. END
 TITLE: How to Prevent Medical Identity Theft CONTENT: How Does Medical Identity Theft Happen?\n---------------------------------------\nMedical identity theft can happen when someone physically steals your information, such as your wallet with your health insurance card in it or medical records that you threw out. The thief often isn't a random person.\nAccording to a 2015 study by the Ponemon Institute, about half the time, medical identity theft occurs between family members. Most often, this is done without the person's knowledge. However, 23% of people said they knowingly shared their medical information with a friend or family member—a type of \"friendly fraud\" that can still lead to mixed up medical records.\nMedical identity theft can also happen when hackers steal information from health insurance companies and medical providers. In fact, medical records can be a juicer target than financial accounts. In 2017, Experian found that credit and debit card information could be sold on the dark web for up to $110 per account. At the same time, medical records were going for up to $1,000, depending on how complete the records were and whether it was a single record or entire database. END
 TITLE: How to Prevent Medical Identity Theft CONTENT: How to Protect Yourself From Identity Theft\n-------------------------------------------\nWhile there's no way to keep all your information completely secure, there are steps you can take to help avoid medical identity theft and make recovery easier:\n*   Read and review notices from your health plan provider, doctors, labs and pharmacies for unusual activity.\n*   Ask for a new card and health insurance identification number if your information is lost or stolen.\n*   Don't share your personal or health plan information with other people or with companies that claim to offer free services or products.\n*   Never share your information on the phone or via email unless you initiate the conversation or can verify that the person contacting you isn't a fraudster.\n*   Shred old documents that have your personal information on them.\n*   Monitor your credit, as unpaid bills may eventually wind up in collections under your name and hurt your credit.\n*   Check your medical records at least once a year.\n*   Keep copies of your medical records as proof of your correct information.\nYou'll also want to implement the same practices you might already use to avoid other types of identity theft, such as using strong and unique passwords for your online medical accounts. END
 TITLE: How to Prevent Medical Identity Theft CONTENT: What to Do if You Think You're a Victim of Medical Identity Theft\n-----------------------------------------------------------------\nIf you receive a bill for a service you didn't receive, notice an error in your medical records or suspect you've been a victim of medical identity theft for a different reason, here's where you'll want to start:\n*   Report the identity theft to the Federal Trade Commission to get your identity theft report and recovery plan. In some cases, you may also want to file a police report.\n*   Consider freezing your credit or adding a fraud alert to your credit reports.\n*   Request your medical records (you may have to pay for copies) and contact your medical providers if you need to make corrections. You may want to send an explanation of what happened, copies of the inaccurate records with the errors circled, a copy of your identity theft or police report, and supporting evidence.\nThe process can be difficult, particularly if you have to deal with multiple medical providers, insurance companies and debt collectors. END
 TITLE: How to Prevent Medical Identity Theft CONTENT: Monitor Your Information and Stay Protected\n-------------------------------------------\nUnlike financial fraud, which you might detect right away, it can be weeks or months before you realize that someone has used your medical plan. You might receive free credit monitoring if your information is stolen in a data breach, but that's not going to help you get everything fixed—and you can sign up for free credit monitoring on your own anyway.\nAs an added protection, a service like Experian's identity theft and credit protection service includes credit and dark web monitoring to help notify when something is amiss. If someone steals your identity (medical or otherwise), you can receive fraud resolution support and get up to $1 million in identity theft insurance to help cover legal fees and other costs associated with getting your identity and medical records fixed. END
 TITLE: What Is Home Title Fraud? CONTENT: How Often Does Home Title Fraud Happen?\n---------------------------------------\nHome title fraud, which was once considered rare, is now seen in some circles as one of the faster-growing cybercrime schemes in the country. In particular, the concern surrounds wire fraud, as the FBI reported 301,580 wire fraud complaints in 2017 with losses of $1.4 billion. Looking at just the real estate and rental industry, more than 9,600 victims lost over $56 million in 2017, according to the FBI.\nAdditionally, analytics firm CoreLogic reported a 12.4% year-over-year increase in mortgage fraud risk for the second quarter of 2018 compared with the second quarter of 2017. Their analysis also found an estimated one in 109 mortgage applications contained indications of fraud in 2018, compared with one in 122 the previous year. END
 TITLE: What Is Home Title Fraud? CONTENT: How Does Home Title Fraud Happen?\n---------------------------------\nHome title fraud is usually a result of identity theft. Many transaction and document requests are done online, which can increase the chances of criminals stealing information. Older people are the most common targets because they typically have more equity in their homes and may not be as online-savvy or pick up on signs of fraud right away.\nOther targets of home title fraud are people who own second homes, vacation homes and real estate investment properties. This group of homeowners may not pay as much attention to these properties as their main residences and may miss notices or bills such as property tax bills, foreclosure notices or past-due notices. This gives scammers more time to commit fraud, and homeowners may not learn of the issue until well after the crime has been committed. END
 TITLE: What Is Home Title Fraud? CONTENT: Phishing for Home Title Fraud\n-----------------------------\nAnother criminal tactic that has grown in popularity is phishing emails that ask a homeowner or homebuyer for their personal information so they can obtain their home title. Phishing is an attempt to get recipients to divulge sensitive information such as usernames, passwords and Social Security numbers, or to transfer money to the scammer through a variety of methods.\nIn 2016, the Federal Trade Commission warned homebuyers about email and money wire scams that included hackers breaking into consumer and real estate professionals' email accounts to get information about real estate transactions. The lesson: Verify the address of any website or origin of an email sent that is requesting personal information. Take the time to look at the company's real website and the actual email address used, and not just the one that appears in your email. END
 TITLE: What Is Home Title Fraud? CONTENT: How to Protect Yourself From Home Title Fraud\n---------------------------------------------\nYou can help thwart scammers by being diligent with your information. Here is a list of ways to protect yourself from home title fraud:\n*   **Check your credit report.** Checking your credit report can help you identify any financial action that may have occurred in your name and help you determine if you have been a victim to identity theft.\n*   **Pay attention to incoming bills.** Make sure you are receiving all your bills, such as the tax bill, water bill, mortgage bill and so on. Not receiving an expected bill can be a sign of home title fraud or possibly identity theft.\n*   **Check home information.** Check the information on your house with your county's deed office every so often to make sure nothing has changed.\n*   **Get help from third-party services.** There are service providers in the market that can help protect against home title fraud, either through title insurance or title protection by \"locking\" your title. Research any prospective companies first before signing up because scammers will pose as these type of businesses too. END
 TITLE: What Is Home Title Fraud? CONTENT: What to Do if You Think You Are a Victim of Identity Fraud\n----------------------------------------------------------\nIf you think you are a victim of identity fraud as a result of home title fraud, here are steps to take immediately to start protecting your identity. Go to Experian's identity theft help page for more details.\n1.  Add a one-year fraud alert to your credit report\n2.  Review your free Experian Credit Report\n3.  File an identity theft report with your local police department\n4.  Notify Experian to resolve fraudulent activity on your credit report\n5.  Add a seven-year fraud victim alert to your credit report\nDetecting fraudulent activity early is the key to minimizing the damage that thieves can do to your credit. Experian's credit monitoring service checks your credit reports daily and notifies you when key changes are made. You can also get a free dark web triple scan or consider signing up for identity theft protection to protect yourself in the future. END
 TITLE: What Is the Difference Between UltraFICO™ and Experian Boost? CONTENT: Experian Boost allows you, for the first time, to add your utility and telecom bill payment history to your Experian credit file, providing an opportunity for you to improve your credit profile. If you've been paying your utility and telecom bills on time, Experian Boost will factor that positive payment history into your credit file, which can often instantly improve your FICO® Score☉ .\nThe best part: You are in control. You can grant Experian permission to connect to your online bank accounts to identify utility and telecom payments. After you verify the payment data and confirm that you want it added to your Experian credit file, you'll receive an updated FICO® Score. The whole process can take as little as five minutes, and the resulting FICO® Score boost is immediate.\nExperian Boost only considers positive payment information, so a late utility or phone payment will not affect your FICO® Score. And you can opt out of Experian Boost at any time. END
 TITLE: What Is the Difference Between UltraFICO™ and Experian Boost? CONTENT: What Is UltraFICO™?\n-------------------\nWith the UltraFICO™ Score, you can leverage your good banking behavior to enhance your FICO® Score. If you have a low FICO® Score or no score at all, then you have a chance to get an UltraFICO™ score based on the banking data you share. The UltraFICO™ Score is based on activity from your checking, savings or money market accounts that shows your responsible financial management. That information includes how much money you have in your account(s), how long you've had those accounts and how much you use them. And while this information doesn't appear on your credit report, it can be used to help improve your FICO scores. END
 TITLE: What Is the Difference Between UltraFICO™ and Experian Boost? CONTENT: Can Experian Boost and UltraFICO™ Work Together?\n------------------------------------------------\nLenders can use Experian Boost and UltraFICO™ to get the most informed understanding of a consumer's creditworthiness. Experian Boost provides lenders with additional payment history information, while UltraFICO™ provides lenders new analytics that incorporate consumer cash flow attributes into a new scoring algorithm. Both tools provide lenders with a more complete picture of a consumer's creditworthiness. END
 TITLE: What Is the Difference Between UltraFICO™ and Experian Boost? CONTENT: Experian Boost and UltraFICO™: Similarities and Differences\n-----------------------------------------------------------\nHere's a breakdown of Experian Boost and UltraFICO™ services and features:\n**Experian Boost**\n**UltraFICO™**\n**Cost**\nFree\nFree\n**Opt-In?**\nYes, consumers choose to opt in\nYes, consumers choose to opt in\n**Features**\nAllows consumers to add positive payment history to their credit file\nAllows lenders to see consumers' positive banking account activity\n**How It Works**\nThrough experian.com\/boost, consumers can opt in to share their information, resulting in an updated FICO® Score\nDuring the loan application process, lenders can ask consumers if they want to opt in and share their banking activity to get an UltraFICO™ Score\n**For How Long?**\nAs long as you want to keep your payment history added to your Experian credit report. You can opt out at any time\nAs long as you want to include your banking activity in your score. You can opt out at any time\n**How Quickly Do Scores Change?**\nConsumers may see an immediate improvement\nOnce the lender adds the banking activity, consumers may see an improvement in their UltraFICO™ Score\n**Who Benefits?**\nConsumers with positive payment history and those with limited credit history or few credit accounts\nConsumers with limited or previously problematic credit history who have positive bank account information\n**Why Use It?**\nAdding positive payment history gives more consumers an opportunity to get scored or improve their credit scores\nAdding positive banking information allows consumers to improve their credit scores and become qualified for better rates and offers from lenders\n**Which Credit Bureaus Use It?**\nExperian\nExperian\nThe bottom line: Both products are about creating greater access to credit. Some consumers today don't have access because they don't have enough credit activity for lenders to assess. Experian Boost and UltraFICO™ help those consumers get credit for good financial management, giving them a better chance of reaching their financial goals. END
 TITLE: How Reusing Passwords Can Lead to Online Attacks CONTENT: What Is Credential Stuffing?\n----------------------------\nCredential stuffing occurs when criminals use large numbers of stolen email addresses and passwords from one site—usually as part of a data breach—to attempt to access other sites through high-volume attacks. That high volume would seem to make it easy for companies to see a visible spike in traffic, but criminals are smarter than that: They know how to make the attempts blend into normal traffic making it difficult for companies to notice anything unusual. And that's when your data gets used against you.\n\"The tools used to automate the attacks easily evade common defenses,\" says Chris Ryan, Experian senior fraud solutions business consultant. \"Organizations that think they are protected are much more vulnerable than they realize.\" END
 TITLE: How Reusing Passwords Can Lead to Online Attacks CONTENT: How Big Is Credential Stuffing Fraud?\n-------------------------------------\nThis type of fraud is on the rise due to the high volume of personal credentials compromised through data breaches and made available on the dark web for criminals to purchase. More than 446 million records were exposed in 2018, according to the Identity Theft Resource Center and CyberScout, which was a 126% increase from the previous year. And earlier this year, 2.2 billion personal credentials aggregated by hackers were made available in a single data dump on the dark web known as Collections 1-5. With new data breaches surfacing on a regular basis, credit stuffing fraud will likely continue to grow. END
 TITLE: How Reusing Passwords Can Lead to Online Attacks CONTENT: How to Protect Yourself From Credential Stuffing\n------------------------------------------------\nCredential stuffing attacks are effective because consumers tend to reuse the same usernames and passwords across online sites. In fact, 81% of consumers report using the same credentials across multiple accounts. With that knowledge, cyber criminals can use your credentials to attempt to get into any number of your accounts, including bank accounts, credit card accounts and more.\nWhile it may not be possible to completely protect your information from a credential stuffing attack, following these steps will make it more difficult for cyber thieves to steal your information.\n1.  **Check to see if your data has been compromised.** You can check your free Experian credit report for errors or suspicious accounts. You can also run a free dark web scan as well to find out whether information like your Social Security number, phone number or email addresses is on the dark web. Two other free services that can tell you whether your personal data was part of a breach are Have I Been Pwned, where you can check whether your email address has been compromised, and Pwned Passwords to see whether your passwords have been exposed.\n2.  **Use unique passwords for every account.** It's simple, but it's also the most important action you can take: Do not reuse passwords across accounts. It may be tempting to recycle passwords for convenience, but it makes identity theft a lot easier for hackers. See Experian's guide to secure passwords.\n3.  **Consider using a password manager.** The average internet user has more than 200 digital accounts that require passwords, according to password management firm Dashlane, and they predict this number will double to 400 in the next five years. Managing that many passwords often leads consumers to fall back on simple and previously used passwords across multiple sites. Instead, consider using a password manager like LastPass, 1Password or Dashlane to keep track of all your passwords securely. You can always do it the old fashioned way and write them down too.\n4.  **Use multi-factor authentication.** Using two-factor authentication these days is a must. This added security feature requires a unique code to be sent by a text message, a phone call or an email to allow you to log in to your account after entering your password. Even if your password is stolen, it prevents others from being able to log in to your account without the code.\n5.  **Delete unused accounts.** If you haven't deleted an old social network account or email account you never use, you may want to. The more accounts you have open, the higher chance that you'll recycle an old password by mistake. Do an audit of the accounts you no longer use and determine whether there are some that you can delete.\nYou may also want to take time to learn more about identity theft issues and how to protect your personal information along with what to do after a data breach.\nWhile credential stuffing shows no signs of going away, taking steps to secure your online personal information will give you an added layer of protection when data breaches occur. END
 TITLE: How to Prevent Senior Identity Theft CONTENT: Why Elderly Citizens Are Vulnerable to Identity Theft\n-----------------------------------------------------\nWhile data breaches and other financial scams have exposed millions in the U.S. to identity fraud, senior citizens are often a favorite target of scam artists. There are several reasons for this. Many older Americans are at a point in their lives when they have an impressive nest egg of savings and investments, and many have also begun accessing their retirement funds. At the same time, they are spending more time in medical offices and using more government services, two industries that are highly targeted by cybercriminals, according to the Identity Theft Resource Center. And that means their personal information is more at risk of compromise in a data breach.\nMost important from a fraudster's point of view, the aging process makes seniors more vulnerable than other age groups. Some severe changes that accompany the aging process, such as the onset of dementia, directly impact the ability to make good decisions. But senior citizens are also more likely to be isolated, if they are widowed or less mobile due to health reasons, for example, and this can be a factor in how they react to scams. Some seniors may respond to the emotion of the situation—worry for a \"kidnapped\" grandchild, fear of arrest by the IRS, attention from someone they met online—and without a strong support system that can provide reality checks, they can be lured in by fraud. END
 TITLE: How to Prevent Senior Identity Theft CONTENT: Types of Senior Identity Theft\n------------------------------\nAccording to the Federal Trade Commission (FTC), people over age 60 are more likely to report a tech scam and less likely to report retail-related scams, especially when they involve financial loss. But there are a variety of scams out there that specifically target older adults to steal their identity. Here are some of the most common types of senior identity theft:\n*   **Tech scams**: You receive a phone call warning that there is a virus on your computer or that your software is out of date and needs to be replaced. The caller may ask for credit card numbers or for email addresses and passwords in order to \"fix\" the problem.\n*   **Medicare fraud or other medical identity theft**: Someone claiming to be a representative with Medicare or your health care provider requests sensitive personal information that's \"missing\" from the medical records.\n*   **IRS scams**: Bogus IRS calls typically start to come in around tax time. The caller threatens you with arrest or foreclosure due to back taxes you supposedly haven't paid and demands payment immediately.\n*   **Estate identity theft or funeral scams**: Fraudsters follow obituaries to steal sensitive information from the deceased, using personally identifiable information (PII) such as birth dates, hometowns and any other information they can cull. Scammers may turn up at funerals to take advantage of grieving family members or rob the home while the family is attending services.\n*   **Military identity theft**: The scammer uses PII to take claim of your military benefits, or they contact you claiming to represent the Veteran's Administration and request personal information.\n*   **Phone scams and robocalls**: These callers may want you to claim a free vacation, donate to charity or get some other special offer, all with the goal of getting your credit card number and other pieces of personal information.\n*   **Grandparent scam**: You get a frantic phone call from your \"grandchild,\" who needs you to bail them out of jail in a foreign country or give them money after they were mugged. Of course, your grandchild is at home, perfectly safe, but if you're not careful, your money could be on its way to a fraudster.\n*   **Romance scams**: Someone reaches out to you on a dating site and starts chatting. You two hit it off, and soon, the person is asking for intimate details about you. Suddenly a financial crisis comes up and the person needs to you send money or offer your credit card number. This scammer then disappears with your money and your information. END
 TITLE: How to Prevent Senior Identity Theft CONTENT: Healthy skepticism and greater awareness can help older adults avoid becoming victims of identity theft. Here are some tips to better protect yourself or your loved ones:\n*   Add contact information of family members, close friends, health providers or anyone who might call regularly. This will help you know if the call is legitimate.\n*   If you don't recognize a phone number, let it go to voicemail. Scammers rarely leave messages.\n*   Don't be afraid to hang up. If you do answer the phone, it's OK to hang up if a stranger asks for personal or financial information.\n*   Remember that government agencies send letters about important information. They don't call or send email.\n*   Check your financial records, credit card statements and bank accounts regularly to make sure everything is in order.\n*   Don't carry your Social Security card. Only carry your Medicare card and other PII when you need it.\n*   Have checks direct-deposited into your bank account. This reduces the risk of the check (and all the valuable information on it) getting into the hands of a thief.\n*   Ask for help. If you aren't sure about something, get another opinion from a trusted friend or family member or do some research.\n*   If it sounds too good to be true, it is probably a scam. If the contact is threatening, it is probably a scam. END
 TITLE: How to Prevent Senior Identity Theft CONTENT: What to Do in Case of Identity Fraud\n------------------------------------\nIf you believe you are the victim of senior identity fraud, contact the FTC to open an identity theft case file. The FTC will provide an affidavit, which you can then take to your local police to file a report. Also contact federal and state government agencies, such as the IRS and Medicare offices. Finally, check your credit report for suspicious or unfamiliar activity, and alert the credit agencies that your identity has been stolen. While the fraud may have already occurred, these steps will help you reduce the damage. END
 TITLE: How to Prevent Identity Theft While Traveling CONTENT: Steps to Take Before the Trip\n-----------------------------\nYou can take several actions to reduce the chance of identity theft before you ever hop on a plane. As you're winding up your vacation itinerary and creating your packing list, don't forget these important tasks.\n*   **Clean out your wallet or purse.** Only carry what you absolutely need for the trip, such as your driver's license, passport and the credit or debit cards you'll be using. Remove everything else that could identify you.\n*   **Contact your bank and credit card providers.** Let them know you'll be traveling to alert them of unusual charges, and they won't decline your card due to suspected fraudulent activity.\n*   **Check your credit report****.** This will give you a baseline of information the credit companies have on record.\n*   **Set up identity theft protection.** This type of service will monitor your personal information activity and financial accounts and alert you if it detects problems.\n*   **Set up a mail hold.** The U.S. Postal Service will hold your mail for up to 30 days while you travel. While you're setting up the mail hold, consider signing up for Informed Delivery, where the post office scans your mail on each delivery day and emails you a PDF of the letters. That way you'll know if anything is missing.\n*   **Add ribbons or unusual luggage tags to your suitcases.** This way you can quickly identify them at the baggage carousel. Your luggage tag should include minimal information: your last name and your cell phone number. This way you can be contacted if it goes missing, but if it is stolen or taken by mistake, no one will have your address, email or other personally identifiable information.\n*   **Share your travel plans with a few trusted people.** Do this in person rather than announcing it on your social media accounts. Even with the strictest settings, there is never complete privacy with anything shared on the internet.\n*   **Pay your bills.** Make sure your bills are all paid—or set up with autopay—before you leave so you won't have to worry about logging in to those sensitive accounts while traveling.\n*   **Update your devices.** Any software patches or operating system updates should be done through your secure home internet connection. It also leaves fewer holes that can be exploited by hackers when using questionable connections. END
 TITLE: How to Prevent Identity Theft While Traveling CONTENT: Keep Your Identity Safe During the Trip\n---------------------------------------\nYou're not off the hook yet. In fact, diligence while you travel is especially important. Here are some precautions to take.\n*   **Try not to use public Wi-Fi, which is easy to hack.** If you must use public Wi-Fi, don't share any personal information. Similarly, try to avoid using a public computer; but if you do, always make sure you completely log out of any website you visit and don't do any banking or bill paying.\n*   **Guard your boarding passes.** Your airline boarding pass shares a lot of information about you, from your full name to your travel plans. Use a mobile ticket when possible. If you do use a paper ticket, don't toss it in your hotel trash can. Rip it into pieces or tuck it away until you get home where it can be shredded.\n*   **Don't put anything of value in your checked luggage.** Keep the most sensitive documents in a bag tucked under the seat in front of you on a plane, rather than in anything that goes in the overhead bin—and out of your sight.\n*   **Lock up important documents.** Unless you need them, keep your passport and other documents locked in your hotel safe. Consider keeping a second wallet that includes copies of each person's passport, a list of credit card numbers and phone numbers of credit card issuers, and some extra cash locked in the safe. That way if your real wallet or purse goes missing, you can contact authorities and put a hold on your credit cards.\n*   **Avoid ATMs in remote locations.** These devices may have skimmers attached or cameras watching your withdrawal. While it can be impossible to avoid ATM machines on vacation, especially if you're on a long trip, use them sparingly and try to only use machines connected to a major bank.\n*   **Limit your social media activity.** Don't share pictures of your trip or tag your travel itinerary on social media while you're away. It advertises that you have an empty house and it allows fraudsters to track your movements. (If traveling in a group, ask your companions to not tag you in their pictures or outings.)\n*   **Verify every personal inquiry.** The front desk at the hotel will not call your room asking for your credit card number, for example, but if you aren't sure, hang up and call the front desk yourself before giving out any personal or financial information. END
 TITLE: How to Prevent Identity Theft While Traveling CONTENT: What to Do After You Return\n---------------------------\nIf you think you've made it through your trip without incident, follow these steps to make sure.\n*   **Check your credit report, credit card accounts and bank accounts.** This will ensure no unexpected changes—or show you otherwise.\n*   **Share your pictures and travel stories … sparingly.** Frequent trip updates or pictures from exotic locales tell a would-be thief a lot about your habits, your schedule and your wealth, making you an attractive target.\n*   **Change passwords as necessary.** This is especially important for websites and accounts you accessed when using public internet connections or computers. END
 TITLE: How to Prevent Identity Theft While Traveling CONTENT: What to Do if Your Identity Is Stolen While Traveling\n-----------------------------------------------------\nIf you think there is a chance you or a family member (remember, children are at risk too) were the victim of identity theft while traveling, you need to take action immediately.\n*   If your passport was lost or stolen while abroad, contact the nearest embassy for help.\n*   If your credit card or debit card goes missing, contact your issuer and bank.\n*   Change passwords, user names and security questions (if possible) for anything that was stolen.\n*   Put a freeze on your credit reports.\nThieves are always looking for ways to make money, and your identity offers another way to do that, whether by selling that information on the Dark Web or using it to set up fraudulent accounts. People tend to let their guard down and relax when traveling, but not paying attention can actually make you more vulnerable to identity theft. You know to lock your door before leaving home. Also remember to lock down your identity, and you'll be more likely to enjoy your trip. END
 TITLE: Understanding Foreclosure CONTENT: What Happens When a House Is Foreclosed?\n----------------------------------------\nForeclosure is a legal option for all mortgage lenders, but there is no universal timeline for it. The process generally involves the following steps, in this order, but time intervals can vary and some steps may differ by jurisdiction and lender:\n1.  Within two to three weeks after missing your first mortgage payment, you'll get a letter from the lender indicating payment is past due and outlining steps they may take (up to and including foreclosure) if your payments are not brought up to date. Many lenders provide a grace period of 10 to 15 days during which you can make a late payment without any penalty.\n2.  If you miss a second consecutive payment, you will likely get additional letters from the lender, as well as phone calls and emails. The bank may impose late-payment penalties that must be paid along with overdue payments to bring your loan back into good standing.\n3.  After a third straight missed payment (that is, after you've gone 90 days past due on your loan), you may get a notice of intent to foreclose in another 30 days. The lender may also post your name on a public list of debtors who are subject to foreclosure.\n4.  After 120 days of nonpayment, the lender may initiate foreclosure. In some states this requires a court proceeding, during which a judge must see proof of loan default to authorize seizure and sale of the property, which can take a year or longer to finalize. In other jurisdictions, the process can take just a few weeks.\nUltimately, the foreclosure process forces all of a home's occupants to vacate the property. The locks will be changed and premises will be secured as the property is prepared for auction or direct resale to a new buyer.\nDifferences in local laws are not the only factors that can affect the foreclosure timeline. Foreclosure policies also vary from lender to lender, and can be affected by the local housing market and economic conditions, as lenders may be somewhat slower to press foreclosure proceedings in markets where real estate sales are sluggish. END
 TITLE: Understanding Foreclosure CONTENT: How Does a Foreclosure Impact Your Credit?\n------------------------------------------\nA month or two after a foreclosure order is issued, a foreclosure entry will typically appear on your credit report, and will remain there for seven years from the date of the first missed payment that culminated in foreclosure.\nA foreclosure is considered a serious derogatory event in your credit history, second only to bankruptcy in terms of severity. Many creditors won't even consider applicants who have foreclosures on their credit reports, while some will disregard foreclosures that are several years old, if the applicant meets the rest of their lending criteria.\nForeclosures have a negative impact on credit scores as well, but as with other negative credit report entries, the number of points by which they'll lower your score depends in large part on how high your score was before the foreclosure and how many other negative entries you have on your credit report.\nMissed payments hurt credit scores more than any other single factor, and foreclosures typically occur only after at least four successive missed payments, which means your credit scores likely will have fallen significantly before the foreclosure appears on your credit report. (If you are missing payments on other debts as well, this of course has a compound effect.) All that said, it would not be unusual for a foreclosure to cause a FICO® Score☉ drop of 100 points if your FICO® Score is in the mid-to-high 600s, and a drop of 150 points or more if your score is 750 or higher.  \nAlternatives to Foreclosure\n---------------------------\nGenerally speaking, lenders prefer to avoid foreclosure whenever possible. Removing occupants and reselling a property is expensive and time-consuming, and it is not the business home lenders want to be in. Every communication the lender issues following the first missed payment will have a contact name you can use to discuss your situation with a lender representative. Taking advantage of that option is almost always in your best interest. You may be able to negotiate a new payment plan with the lender (for which you should expect to pay higher interest and fees in exchange for a more manageable monthly payment). If that doesn't allow you to stay in the house long term, it could at least give you time to sell it before foreclosure occurs.\nIf your local housing market has slowed, or property values have fallen and you're \"upside-down\" on the loan—that is, you owe more on your mortgage than the market value of the house—you may also be able to get the lender to agree to a short sale. In a short sale, you sell the house for as much as you can get and the lender accepts that sale amount as settlement of your loan. A short sale is far from ideal. It leaves you with no net proceeds from the sale of the home and, because you didn't settle your mortgage under its original payment terms, you'll get a negative entry on your credit report, but one that's less severe than a foreclosure. END
 TITLE: Understanding Foreclosure CONTENT: How Does a Foreclosure Sale Work?\n---------------------------------\nWhile foreclosures are very bad news for borrowers who lose their homes, they can be great opportunities for homebuyers with above-average tolerance for risk and willingness to put some work into potentially distressed properties. Foreclosed homes, sold in as-is condition at auction or directly from a lender in the process of seizing the property, can be significant bargains, but it's important to know the potential pitfalls before you venture into that market.\nForeclosure is a potentially devastating experience that borrowers and lenders prefer to avoid at all costs. If you experience a foreclosure, you can expect a significant blow to your credit that will likely take several years to recover from. Your best bet in that case is to take steps as soon as possible to begin rebuilding your credit. With time and patience, you can rebound from a foreclosure. END
 TITLE: How to Improve Your Credit Score After a Foreclosure CONTENT: How Does a Foreclosure Affect Your Credit?\n------------------------------------------\nBecause a foreclosure record tells creditors you weren't able to make your mortgage payments, it has an extremely negative effect on your credit. So, just how much can a foreclosure impact your credit score? It depends on where your credit stood before the event.\nThe higher your credit score was beforehand, the more significant the impact will be. The foreclosure will remain on your credit history for seven years after the date of your first missed mortgage payment before it drops off naturally. END
 TITLE: How to Improve Your Credit Score After a Foreclosure CONTENT: Rebuilding Credit After a Foreclosure\n-------------------------------------\nWhile rebuilding credit after a foreclosure takes time and commitment, it's not impossible. By taking the following steps, you can recover from the situation and position yourself as a responsible borrower.\n1.  **Identify the cause of your foreclosure.** Before you attempt to rebuild your credit, figure out what led to your foreclosure in the first place. Dive deep into your finances and spending history so you can find out what caused you to miss your mortgage payments.  \n    Did a major event such as job loss or divorce play a role? Or, did you make purchases you really couldn't afford? Be honest with yourself and try to recognize where you may have overspent, spent unwisely or failed to plan for emergency expenses. Once you know the problem, work to correct it and you can prevent another loan default.\n2.  **Pay your bills on time.** Make it a top priority to pay all your bills on time. Timely payments on your credit cards, car loans, utilities and other bills can play the biggest factor in your credit score and can help prevent foreclosure from completely ruining your credit. If you often forget to pay your bills, set up calendar reminders or sign up for automatic payments.\n3.  **Make a budget and stick to it.** It's easy to forget about the long-term impacts of going through the coffee drive-thru line every morning, buying the newest smartphone and frequently traveling abroad. Without proper budgeting, these actions can put you in a cycle of debt and worsen your credit score, rather than help it. Take the time to create a budget (and stick to it). This can help you live within your means and avoid debt.\n4.  **Get a secured credit card.** Foreclosure may prevent you from getting approved for a traditional credit card. If this is the case, apply for a secured credit card. Secured credit cards will require a deposit and generally have a spending limit that matches your deposit, but are attainable by consumers whose credit has been dinged by foreclosure. Making timely payments on a secured credit card can have a noticeable positive impact on your credit. Pay it off in full each month to avoid interest and to prevent debt from ballooning.\n5.  **Keep an eye on your credit utilization ratio.** This ratio measures your total credit card debt against your total credit limit. A ratio above 30% can hurt your credit scores, so aim to keep it below that—but the lower, the better. Your credit utilization ratio is the second-most important factor in your credit scores, so keeping it low tends to have a positive impact.\n6.  **Seek a professional's help.** You don't have to create a budget or figure out how to reduce your debt on your own. A professional such as a credit counselor can help you design the ideal solution for your unique situation. They may also negotiate with creditors to lower your interest rates and monthly payments. To find a reputable credit counselor, look for a nonprofit organization certified by the National Foundation for Credit Counseling or the Financial Counseling Association of America.\n7.  **Check your credit scores and reports regularly.** To monitor your progress, it's a good idea to check your credit scores and reports on a regular basis. You can request a free credit report from each of the credit bureaus (Experian, TransUnion and Equifax) once a year by going to AnnualCreditReport.com or check your Experian credit report for free every 30 days. Doing so can give you an idea of the specific factors impacting your credit score and how to address them. It can also motivate you to stay on track with your rebuilding efforts.\n8.  **Be patient.** There's no denying that repairing your credit score after foreclosure takes some time. Be patient and don't expect instant results. Just remember that with time and diligence, you can turn your dream of an improved credit score into a reality. END
 TITLE: How to Improve Your Credit Score After a Foreclosure CONTENT: All hope isn't lost after a foreclosure. These tips can help you rebuild your credit score and improve your financial situation. With hard work and dedication, you can recover from a foreclosure and achieve your short-term and long-term goals. END
 TITLE: How Long Does a Foreclosure Stay on Your Credit Report? CONTENT: The legalities of the foreclosure process differ from state to state, but every foreclosure is the culmination of a series of missed payments on a mortgage loan. Every missed payment damages your credit, and foreclosure hurts it further still.\nLenders typically issue notices of intent to foreclose—seize and resell a mortgaged property—only after a borrower has failed to make a loan payment for 90 days (that is, after they've missed three monthly payments in a row). The notice typically instructs a homeowner to bring the loan up to date within 30 days or lose their home, so by the time foreclosure begins, the borrower will have missed four monthly payments.\nEvery missed payment, or delinquency, is tracked in your credit report, and each has a significant negative effect on your credit score. Depending on your starting score, missing three or four mortgage payments could easily reduce your credit score by more than 100 points—an effect that can be magnified if you're also missing payments on other debts, such as credit card bills or car loans.\nBy the time foreclosure is finalized and appears on your credit report, accumulated delinquencies may have lowered your score so significantly that the foreclosure itself doesn't lead to a major loss in points. But a new foreclosure entry can hold your score down, even if you're able to maintain timely payments on all your other bills.\nA foreclosure stays on your credit report for seven years from the date of the first related delinquency, but its impact on your credit score will likely diminish earlier than that. Still, it's likely to drag down your scores for several years at least.\nEven after your credit score rebounds, however, a foreclosure on your credit report may hinder your ability to get a new mortgage. Some lenders won't even consider lending to applicants who have foreclosures on their credit reports. Other lenders may consider applicants with foreclosures in their histories, but only three or more years after the fact (as is the case with some issuers of FHA loans). Because a foreclosure is considered a mark of a risky borrower, lenders may charge extra fees or higher interest rates to borrowers who have one (or more) on their credit reports. END
 TITLE: How Long Does a Foreclosure Stay on Your Credit Report? CONTENT: Improving Your Credit After a Foreclosure\n-----------------------------------------\nIf you've been through a foreclosure and are working to rebuild your credit, there are a number of steps worth considering, including:\n*   Review the circumstances that led up to the foreclosure and take steps to avoid repeating any missteps. Should you have had a larger emergency fund that could have covered more payments, for example? Were your monthly expenses excessive, or did you take on a higher mortgage payment than you should have? Unforeseeable circumstances may have played a role as well, but be realistic about how ready you were for them, and how you might better prepare for similar challenges in the future.\n*   Take the time to create a budget and then stick to it, to set aside regular savings and avoid unnecessary or excessive debt.\n*   Consider professional assistance. If you're stressing over creating a budget or working out a debt-reduction program, expert help is available. A certified credit counselor can help you work out a plan that will work for you. If appropriate, they can also help you devise a debt management program, through which they can negotiate with creditors to lower your interest rates and monthly payments. To find a reputable credit counselor, look for a nonprofit organization certified by the National Foundation for Credit Counseling or the Financial Counseling Association of America.\n*   Be relentless about paying your bills on time, and adopt other habits that tend to promote credit score improvements.\n*   Track your progress by checking your credit scores and credit reports on a regular basis. You can request a free credit report from each of the credit bureaus (Experian, TransUnion and Equifax) once a year by going to AnnualCreditReport.com or check your Experian credit report for free every 30 days.\n*   Give it some time. With perseverance and patience, you'll see steady, if gradual improvements in your credit score over time. END
 TITLE: How Long Does a Foreclosure Stay on Your Credit Report? CONTENT: Tips to Avoid Foreclosure\n-------------------------\nWhile your credit can and will recover after a foreclosure, the best response to foreclosure is to prevent it altogether.\nHere are some tips to avoid the painful process in the first place:\n*   Be proactive with your lender. Before you miss your first mortgage payment (and strike a blow to your credit score), reach out to your lender and let them know you're having difficulty. They may offer you some options to help you work through a short-term loss of income or buy you time to sell your home. Depending on the nature of the property and how many payments you've already made on the loan, they may also offer to renegotiate a longer repayment term with lower monthly payments.\n*   Respond to communications from your lender. When debt starts to feel overwhelming, it's common for borrowers to let notices from lenders pile up in the form of unanswered voicemails and unopened mail. That's the worst possible response. Lenders don't want to be in the foreclosure business, but they can't work with you if you don't respond when they reach out. The conversations won't be fun, but they're better than losing your home.\n*   Use the U.S. Department of Housing and Urban Development (HUD) as a resource. HUD has a variety of helpful tips and strategies and offers access to counselors who can help you work out a plan for avoiding foreclosure.\nForeclosure is something no one—neither borrower nor lender—ever wants to go through. It's best avoided altogether, but if you can't get around it, you and your credit should eventually recover. END
 TITLE: Should I Hire a Foreclosure Attorney? CONTENT: What Do Foreclosure Attorneys Do?\n---------------------------------\nForeclosure defense attorneys handle all the legal aspects of a foreclosure, including court proceedings and mortgage company negotiations. They'll know the latest regulations relevant to your case and, perhaps most importantly, they'll know how to best defend your rights.\nThe process typically begins with a consultation, during which you can discuss the details of your case with a foreclosure attorney. This is your chance to express your worries and ask any questions you might have, and the attorney can advise you of your rights and options. They may ask to examine loan paperwork and communication records from the mortgage company. Depending on the goals you agree on, the lawyer you hire may simply help you understand the process and advise you of your options, or they may represent you in an effort to fight the foreclosure.\nEach law office is different, so be sure to ask about the specific services they provide. For example, if filing for bankruptcy is also on the table for you, it's a good idea to find a lawyer who can deal with both foreclosures and bankruptcies.\nA lawyer's support can make or break your case, but you may not need their services for the whole process. Sometimes, a simple consultation with a foreclosure attorney is enough to put you in a better position in your housing dilemma. END
 TITLE: Should I Hire a Foreclosure Attorney? CONTENT: When Does It Make Sense to Hire a Foreclosure Attorney?\n-------------------------------------------------------\nYour lender usually has to wait until you're at least 120 days late on your payment to initiate either a judicial or nonjudicial foreclosure, depending on state laws. In a judicial foreclosure, you respond to the lender's lawsuit through the state court system. To fight a nonjudicial foreclosure, which doesn't require the lender to secure a judge's approval, you have to file your own lawsuit for the court's consideration. In either process, you should usually seek out an attorney for some situations in particular, such as when:\n*   **You think you have a valid defense.** A foreclosure attorney can determine whether the lender followed proper practices, made any mistakes with your account or has the legal standing to foreclose on you. If an attorney is able to find a valid issue with your foreclosure, it could turn the legal tide in your favor.\n*   **Your legal options are limited, but you want to keep your home.** Even if it's unlikely you'll be able to mount a legal defense, an attorney can help you keep your home by aiding in negotiations with your lender. If you expect a foreclosure, it's best to get legal advice as soon as possible.\n*   **You have a government-backed loan.** For example, a loan backed by the Federal Housing Administration (FHA) might qualify for additional aid, so you'll want to ask an attorney for guidance.\n*   **You've served in the military.** Military members, past and present, can meet with a lawyer to discuss possible protection against foreclosure under the Servicemembers Civil Relief Act (SCRA).\n*   **There are pandemic-related complications.** Local and federal governments continue to implement and update foreclosure laws. Depending on the terms of your mortgage and where you live, you may even be subject to a temporary foreclosure moratorium that protects you from losing your home for the time being. You may also have a right to request \"forbearance,\" meaning a pause in your payments, or other relief options. An attorney will know which current regulations can apply to your situation, and what the best option might be.\nOn the other hand, some foreclosures can be handled with little or no help from a lawyer:\n*   **You don't want to keep your home.** You may already be looking for more affordable housing or requesting a loan modification (more on that later), so an attorney may not be necessary—but you'll still be in charge of handling any court-required legal documents if you're facing a judicial foreclosure.\n*   **You don't have a defense for your case.** A lawyer should be able to tell if you have a potential defense during an initial consultation. If you have no grounds to fight the foreclosure, you can likely manage the rest of the process without a lawyer. END
 TITLE: Should I Hire a Foreclosure Attorney? CONTENT: How Much Does a Foreclosure Attorney Cost?\n------------------------------------------\nWhen you're already dealing with foreclosure, digging into your pockets to fund a legal battle may not sound all that tempting. Attorneys can charge an hourly fee, usually with a retainer—meaning you pay for a specified number of hours in advance, and you may have to add to that if more work is required. Alternatively, a lawyer might charge a flat rate for a foreclosure case.\nA more complicated case or a more experienced attorney will usually mean a higher price tag, and you'll be responsible for any additional costs, such as court filing fees. Altogether, the total can range from several hundred dollars to several thousand, depending on your particular predicament.\nMoney may already be tight, but you can always start with free advice from a Housing and Urban Development (HUD) counselor. They can look over your paperwork and give you a better idea of whether an attorney is worth the cost for your case.\nAsk the HUD counselor if they can recommend any lawyers that work with affordable rates or who might take on your case \"pro bono,\" or free of charge. You can also search online for legal aid offices near you—they might be able to help for free, or at least for less than most attorneys charge.\nUltimately, even if you can't afford to hire a foreclosure attorney, try to at least arrange for a consultation with one—even one meeting could put you in a better position to handle your foreclosure. Whether or not you choose to hire them, they can answer your questions and offer crucial guidance. END
 TITLE: Should I Hire a Foreclosure Attorney? CONTENT: How to Find a Foreclosure Attorney\n----------------------------------\nOften, the best way to approach your case is to start with a HUD counselor. That way, you can get information specific to your state, organize what you'll need and get attorney recommendations. From there, check your state's website for more resources. You can usually find links to foreclosure attorneys and legal aid in the area, as well as links to pro bono and free consultation offers. Your local courthouse or state bar association can also offer references online or over the phone.\nOnce you hire a lawyer or schedule a consultation, be clear about your expectations from the start and offer them all the facts. Be sure to get critical questions answered, like whether you have a defense, which foreclosure alternatives they can help you with, and what they hope to accomplish with your case. END
 TITLE: Should I Hire a Foreclosure Attorney? CONTENT: How Does a Foreclosure Affect Your Credit?\n------------------------------------------\nA foreclosure's effect on your financial history can be substantial. Payment history is the most significant factor of your credit score, so your score may have already taken a hit from any missed mortgage payments. Not only that, the foreclosure itself can knock 100 points or more off your credit score as soon as it's complete.\nYou can rebuild your credit score after a foreclosure, but it will likely take years and lots of financial discipline to do so. Be prepared to use credit responsibly, monitor your credit report and scores regularly, and build healthy budget habits to stay on track. Foreclosure stays on a credit report for seven years from the date you first missed a payment, and it stands out to potential lenders as a grim red flag, affecting your access to lines of credit and loans in the future.\nGiven its effect on your credit, it's best to prevent foreclosure altogether if at all possible. On top of the credit consequences, foreclosures often consume significant amounts of time and money for both the borrower and the lender—so avoiding one could be in everyone's favor. END
 TITLE: Should I Hire a Foreclosure Attorney? CONTENT: Can I Modify My Mortgage Loan?\n------------------------------\nInstead of taking the immediate and long-term hits to your creditworthiness, convey your finance concerns to your lender and try to negotiate a foreclosure alternative. You may be able to get a mortgage modification to make your payments manageable enough to keep your home if your lender agrees to change the terms of your loan.\nYou don't usually need an attorney to apply for a mortgage modification, so communicate directly with your loan company or ask an HUD counselor to help you submit the proper forms. Since some foreclosures move quickly, try to discuss modifying your loan as soon as you anticipate difficulty making a payment, even if you haven't missed it yet. Once the foreclosure process gets going, you're much more likely to need an attorney to succeed with any renegotiations.\nYour lender might not be willing or able to modify your loan, but you can still consider other options. Even though they show up as adverse events in your financial history, they are generally considered less severe than foreclosure:\n*   **Repayment plans** are usually short-term agreements to pay back missed payments in the near future, rather than permanently restructuring your terms with a mortgage modification.\n*   **Filing for Chapter 13 bankruptcy** can grant you a few years to pay back your loan if you qualify. You may need a bankruptcy attorney rather than a foreclosure attorney for this route, depending on whether your lawyer covers the option.\n*   **Use a \"deed in-lieu-of foreclosure\"** to sign your property over to the lender voluntarily. Try to get your mortgage provider to waive the deficiency balance so you don't still owe on your loan after surrendering the property.\n*   **Agree to a short sale** and sell the property for less than you owe. This can be a tough option, though, and there's no guarantee the lender will approve the sale or forgive the remainder of your debt. The tax implications can be heavy as well. END
 TITLE: What Is Credit Card Churning? CONTENT: How Credit Card Churning Works\n------------------------------\nCredit card churning involves opening new credit cards to get the intro bonus without intending to use the cards afterward. Churning isn't illegal, but it is controversial and frowned upon by card issuers.\nBefore credit card issuers really caught on and put systems in place to stop the practice, churners would open multiple credit cards in quick succession, earn the intro bonus for each new account and then close or stop using the cards. A few months later, churners would start again with another round of applications. While they had to meet the minimum spending requirements to earn the intro bonuses, there were tricks to accomplish that as well.\nCredit card churning still happens, but many credit card issuers have updated the terms and conditions for their credit cards and rewards programs to stop it, or at least make it harder and less lucrative.\nAnother example is Chase's unofficial 5\/24 rule, which means the card issuer generally won't approve you for a new credit card if you've opened five cards within the last 24 months—including cards from other issuers.\nOther card issuers may take similar approaches to stop people who may be trying to game their rewards programs. For example, American Express generally only allows you to earn the intro bonus on one of their cards once per lifetime. If you close your account, you can apply for the same card again in the future, but you might not be eligible for the intro bonus.\nThere have also been cases of card issuers taking back points that were earned by someone gaming the system. In a few cases, issuers have even shut down accounts, including checking and savings accounts someone has at the company. END
 TITLE: What Is Credit Card Churning? CONTENT: The Drawbacks of Credit Card Churning\n-------------------------------------\nEven with the risk involved, some people still look for ways to maximize rewards by churning cards. Would-be churners may keep track of cards' intro offers—which can change over time—and wait until there's a good offer before applying. They may also plan out which cards they'll apply for over the next couple of years based on the offers and card issuers' rules.\nThe main goal of credit card churning is the same as it always was—earning rewards from credit card intro bonuses. However, card issuers' monitoring and restrictions has resulted in a growing list of cons. The big downsides include:\n*   A card issuer shutting down your accounts, which may include all your credit card and bank accounts.\n*   A card issuer taking back rewards if they feel you gamed the system.\n*   You could spend more money on annual fees, interest and additional purchases than you receive in rewards.\n*   Credit card churning could hurt your credit scores.\n*   The potential to build up debt you can't pay down.\nThese risks and the ethical gray area churning presents are enough reason for many to decide it isn't for them. Not only that, churning may be extra risky or impossible if:\n1.  You have bad credit. The credit cards with the best offers generally require a good to excellent credit score.\n2.  You're preparing to apply for a large loan. Applying for multiple credit cards, particularly in a short period, could hurt your credit scores. If you plan on applying for a mortgage or auto loan soon, you want to make sure your credit is in tip-top shape.\n3.  You can't afford the spending requirements. You'll need to meet credit cards' minimum spending requirements to earn the intro bonuses. But spending with a credit card in pursuit of rewards can easily cause you to carry a balance, which results in interest costs and other consequences. A high balance could cause you to spend more on interest than you receive from the rewards.\n4.  You don't want to invest the time. It can take a lot of time and energy to keep track of your applications, progress with minimum spending requirements, open credit card accounts and the card issuers' policies. It's easy to make mistakes that could hurt your credit or more than wipe out the value of the rewards you earn.\nCredit card rewards earned responsibly can be a great way to save on your credit card bill and earn rewards points for a trip, but churning is something that's outside a lot of cardholders' comfort zone. END
 TITLE: What Is Credit Card Churning? CONTENT: How Can Credit Card Churning Affect Your Credit?\n------------------------------------------------\nCredit card churning involves frequently and repeatedly opening new credit card accounts. Even if you're not trying to churn cards, opening multiple credit cards can impact your credit scores in both negative and positive ways. Here's a closer look at why this can happen.\n*   **New hard inquiries**: Each credit card application can lead to a new hard inquiry on one or more of your credit reports, and hard inquiries may hurt your credit scores. Applying for multiple credit cards within a short period may lead to a large score drop. And, hard inquiries can occur even if the card issuer rejects your application.\n*   **Lower your average age of accounts**: Credit card churning can also hurt your credit scores because each new account will lower the average age of the accounts in your credit reports. In general, a higher average age of accounts is better for your scores. Closing an older account won't impact this factor immediately, as FICO® Scores☉ consider closed and open accounts in your credit reports when determining the average age of your accounts. Card accounts closed in good standing stay on your credit report for up to 10 years.\n*   **Affect your utilization rate**: Opening many new credit cards can cause your available credit to increase and lower your credit utilization rate. However, making the purchases required to earn points, rewards and intro bonuses could easily cause your credit utilization to spike and drag your scores down in the process.\nBecause credit card churning involves managing a lot of credit card accounts, it may also increase the likelihood that you accidentally miss a credit card payment. A missed payment could lead to penalties and interest. And, falling 30 days behind could lead to a late payment in your credit reports, which could hurt your scores. END
 TITLE: What Is Credit Card Churning? CONTENT: A Better Way to Accumulate and Maximize Rewards\n-----------------------------------------------\nYou don't need to dive in and make earning credit card rewards a part-time job or hobby to benefit. Instead of trying to learn all the rules and manage a handful of accounts, you may want to look for one or two of the best rewards cards that will offer good benefits with continued use.\nIf you want to try a more complex option to maximize your rewards, you could look for complementary cards from the same card issuer. For example, Chase offers several rewards cards that are part of its Chase Ultimate Rewards program. The cards offer different rewards rates, allowing you to use whichever card will give you the most rewards for a purchase. You can then combine the points and figure out which redemption option will be best. END
 TITLE: What Is Credit Card Churning? CONTENT: Monitor Your Credit Cards and Report\n------------------------------------\nWhether or not you're interested in credit card churning, monitoring your credit card accounts and reports can be important. You don't want to miss a payment and have to pay fees or hurt your credit. And, you want to make sure no one is using one of your cards or fraudulently opening a card in your name. One way to do this is with an Experian account that offers a free credit report and free credit monitoring with alerts key changes. END
 TITLE: Safe Online Shopping for the Holidays and Beyond CONTENT: Protect Your Information\n------------------------\nIdentity theft happens when thieves steal your personal information, which could include your Social Security number; information associated with your credit card, online accounts or bank account information; and passwords or PINs.\nOften, con artists get hold of someone's personal information by posing as a legitimate merchant, intercepting a legitimate transaction in progress or pilfering data long after you've made your purchase. The less information you give up when completing a transaction, the less vulnerable you are if a retailer or online seller is hacked. Consider doing the following to reduce your exposure:\n*   **Use Apple Pay, Google Pay or another digital wallet instead of your card.** Digital wallets use an encryption system that replaces your card information with a one-time digital \"token\" when you make a transaction. You don't have to fully understand the technology—just know that the merchant never sees your card number and, if your payment data were ever breached, it would be useless.\n*   **Use a virtual private network (VPN).** These work on your mobile phone and home computer to encrypt your online activity and ensure your information and transactions stay private.\n*   **Don't shop on public Wi-Fi.** Although a VPN can help obscure your information, it's a good year-round practice to avoid any type of transaction that could disclose your personal information while using public Wi-Fi.\n*   **Don't store your card information online.** Fraudsters will have less key information to access in the event of a data breach. When a merchant asks if you'd like to save your payment information for future purchases, think about saying know.\n*   **Be careful at points of sale.** Thieves can attach skimming devices to card readers to capture your card information. Be especially careful when you're at a gas pump or outdoor ATM. Also be on guard against shoulder surfing: Thieves may be watching you enter your PIN at the ATM or sales counter. END
 TITLE: Safe Online Shopping for the Holidays and Beyond CONTENT: Be a Social Skeptic\n-------------------\nSocial scams are becoming more common. Classically, these include phishing emails that capture your account or payment information by pretending to be a familiar vendor, or scam calls that attempt the same thing by phone. Social media is the new frontier for these scams, so keep your eyes out there as well.\n*   **Beware of social media ads.** These often offer \"too good to be true\" pricing on your favorite items, but may simply exist to take your credit card information and leave you empty handed, or otherwise disappointed. Before making purchases, conduct some research into the company, keeping a special eye out for any customer complaints. If something seems off, it's often best to trust your gut. If the deal they're offering is vastly better than what's being charged by websites you know and trust, be leery. Also be skeptical of ads claiming a merchant has stock of widely sold-out items as well, such as video game consoles, as they may simply be looking to take advantage of desperate consumers.\n*   **Look out for email phishing scams.** If you receive an email informing you of account irregularities—or anything else—don't click on any links in the email. Instead, ignore the email and go directly to the company's site. Call the support number listed on the website directly if you have any questions. If an email looks unusual, or is sent from an address you don't recognize, stay extra vigilant.\n*   **Be wary of social engineering phone calls.** Here's the scenario: Someone's calling to let you know your account has been hacked. They ask you to read back the authentication code they just texted so they can verify your identity and fill you in on what's happened. Don't go along with it. Scammers may call to ask for all kinds of personal information or for a two-factor authentication code they need to log in to your account. They may even pose as a favorite charity looking for a donation. Hang up and, if you have any doubts, contact the company or charity organization directly to follow up. END
 TITLE: Safe Online Shopping for the Holidays and Beyond CONTENT: Activate Card Security Features\n-------------------------------\nEMV chips in credit and debit cards help to discourage counterfeit card fraud, but your card's security features don't stop there. Check out and try these options to keep your card information safe.\n*   **Turn your cards off when not in use.** Many credit and debit cards now come with an on\/off switch you can activate online or by app. Especially during the busy holiday season, consider leaving your cards \"off\" until you're about to use them.\n*   **Set up alerts and notifications.** Set up text alerts that let you know when a big transaction—or even any transaction—is being attempted. It's a simple way to help spot and address potential fraud.\n*   **Use virtual cards for secure online shopping.** Ask your card issuer if they offer virtual cards. These are temporary virtual credit card numbers that stand in for your regular credit card credentials for secure shopping online. If your virtual card number is compromised, your credit card number will remain safe. Citi and Capital One are two card issuers that offer virtual cards. END
 TITLE: Safe Online Shopping for the Holidays and Beyond CONTENT: Let the Best Card Win\n---------------------\nYou can use credit or debit when shopping online, but be aware that there are differences.\n*   **Credit cards have an edge** **over debit for online shopping.** Although fraudulent charges made on your debit card may be reversed, using a credit card is one way to avoid your bank account being depleted while you wait for the bank to investigate and reimburse you. Commonly, fraud protections are more stringent with credit cards, with many card issuers going as far as offering $0 fraud liability. If you don't want to run up a big balance on your credit card, consider loading up a prepaid card and using it instead.\n*   **If you must use debit, consider checking out with PayPal.** Using PayPal Checkout lets you avoid entering card information on a retailer's site. PayPal provides a gateway between your information and the merchant, so they don't see—or store—your personal financial data.\nMonitor Your Credit and Identity\n--------------------------------\nKeep a close eye on your credit to make sure nothing suspicious is happening—during and after the holidays. Identity thieves may try to run up fraudulent charges on your existing accounts or open new accounts in your name and run up a balance they leave for you to deal with.\n*   **Set up free credit monitoring.** Free credit monitoring with Experian lets you access your regularly updated credit score and report, and can alert you when changes occur to your credit file. This may be especially helpful during the busy, fraught holiday season, but it's also a good idea throughout the year. You'll spot potential problems with your credit file quickly and be able to address them more quickly.\n*   **Report suspicious activity or identity theft.** If you think you are the victim of identity theft, contact the card issuer or bank directly using the number listed on the back of your card. You may also want to file a report with the FTC, notify credit bureaus and place a lock on your credit. Getting identity theft protection now can help you navigate this process if you ever need to.\nBe Secure During the Holidays and Beyond\n----------------------------------------\nThe holidays don't have to be prime time for identity theft. And being mindful of security is a good idea at any time of year. By maintaining basic cybersecurity, being wary of social scams, choosing and using the most secure payment cards, and monitoring your credit and identity, you can go a long way toward keeping ID theft at bay—during the holidays and throughout the year. END
 TITLE: Safe Online Shopping for the Holidays and Beyond CONTENT: Monitor Your Credit and Identity\n--------------------------------\nKeep a close eye on your credit to make sure nothing suspicious is happening—during and after the holidays. Identity thieves may try to run up fraudulent charges on your existing accounts or open new accounts in your name and run up a balance they leave for you to deal with.\n*   **Set up free credit monitoring.** Free credit monitoring with Experian lets you access your regularly updated credit score and report, and can alert you when changes occur to your credit file. This may be especially helpful during the busy, fraught holiday season, but it's also a good idea throughout the year. You'll spot potential problems with your credit file quickly and be able to address them more quickly.\n*   **Report suspicious activity or identity theft.** If you think you are the victim of identity theft, contact the card issuer or bank directly using the number listed on the back of your card. You may also want to file a report with the FTC, notify credit bureaus and place a lock on your credit. Getting identity theft protection now can help you navigate this process if you ever need to. END
 TITLE: Safe Online Shopping for the Holidays and Beyond CONTENT: Be Secure During the Holidays and Beyond\n----------------------------------------\nThe holidays don't have to be prime time for identity theft. And being mindful of security is a good idea at any time of year. By maintaining basic cybersecurity, being wary of social scams, choosing and using the most secure payment cards, and monitoring your credit and identity, you can go a long way toward keeping ID theft at bay—during the holidays and throughout the year. END
 TITLE: Do Deferred Payments Affect Credit? CONTENT: How Does Deferring a Payment Work?\n----------------------------------\nWhen you request a loan deferment and your lender agrees to the arrangement, you're allowed to temporarily stop making payments on the loan. You don't need to worry about late payment fees or your loan servicer reporting missed payments to the credit bureaus.\nGenerally, you'll need to apply if you want to put your loan into deferment. The process can vary depending on the type of loan you have and which creditor or loan servicer you send your payments to each month.\n*   If you have a federal student loan, you can submit your request to your loan servicer. You can review the eligibility requirements for loan deferment or forbearance (a similar option that lets you temporarily stop making payments) on the Department of Education's website. Your loans may automatically be put into deferment if you enroll in an eligible school with at least a half-time course load.\n*   With an auto loan, the lender may refer to the arrangement as a loan extension or postponement. Each lender will have different criteria you must meet before they grant an extension. For example, you may need to show that you're requesting the extension due to a temporary setback, such as a medical emergency.\n*   If you're having trouble with mortgage payments, you can contact your mortgage servicer to discuss your options. One option may be able to place your loan into forbearance and temporarily stop making payments or make smaller payments. You can get free assistance from a Department of Housing and Urban Development (HUD) counselor who can help explain your options.\nWhether it's called deferment, loan extension, postponement or forbearance, continue making your payments until you're certain that your lender or loan servicer has approved your application and is allowing you to stop making payments.\nAlso, remember that these arrangements are temporary and you may need to reapply if you want to keep postponing payments. END
 TITLE: Do Deferred Payments Affect Credit? CONTENT: When a lender approves your deferment request, it should report that your payments are currently deferred to the credit bureaus. While this appears on your credit report, the deferment mark won't directly help or hurt your credit scores.\nThe accounts can continue to impact your credit scores, though. For example, your account will continue to age, which lengthens your credit history and could help your scores.\nAlso, keep in mind that if you apply for deferment and stop making payments, but your lender denies the deferment request or a payment is due before it's approved, the late payment could still get reported to the credit bureaus and hurt your scores.\nIf you missed payments before putting your loan into deferment, those late payments won't be removed from your credit history. However, if your account was past due when you entered deferment, their impact may temporarily be ignored while your loan is in deferment. END
 TITLE: Do Deferred Payments Affect Credit? CONTENT: Will I Still Be Charged Interest During Deferment?\n--------------------------------------------------\nThere are certain situations when you don't need to pay the interest that accrues during deferment. For example, if you have subsidized federal student loans, the government may make the interest payments during deferment (but not for student loan forbearance).\nSubsidized student loans aside, you may be responsible for repaying the interest that accrues while you've postponed your payments. You may get a slight break if your interest rate only applies to your loan's principal balance during deferment—meaning you won't be charged interest on the interest that accrues.\nHowever, even then, once you start making payments, the accrued interest could be capitalized—added to your principal balance—and your interest rate now applies to the larger principal balance. As a result, more interest may accrue each month after your deferment ends.\nDepending on the arrangement, you may add additional loan payments to the end of your loan's term or your monthly payment amount may increase. In either case, you wind up paying more overall than if you hadn't deferred your payments.\nFor mortgages, you may have to make a large lump-sum payment for the entire amount past due that accrued during the forbearance. This can include the missed loan payments, interest and insurance. END
 TITLE: Do Deferred Payments Affect Credit? CONTENT: Loan Deferment Alternatives\n---------------------------\nIn the cases where you may have trouble affording your loan payments but don't want to put your loans into deferment, your deferment request is denied or you've reached the maximum amount of time your loans can be in deferment, you'll need to consider other alternatives.\nYour options will depend on the type of loan you have, your lender or loan servicer, and the reasons you're having trouble affording payments. They may include:\n*   Your lender could offer alternative hardship options, such as temporarily lowering your interest rate or monthly payment amount.\n*   You may be able to switch to a different repayment plan with a lower monthly payment.\n*   You might be able to permanently modify your loan agreement and lower your monthly payments.\n*   You could refinance your loan and your new loan could have a longer term or lower interest rate, which can lead to a lower monthly payment. However, this may require good credit and a higher income. END
 TITLE: Do Deferred Payments Affect Credit? CONTENT: Having Trouble? Act Quickly\n---------------------------\nIf you're currently faced with a bill that you can't afford, or foresee being unable to afford bills due to losing a job, a medical emergency or another crisis, reach out to your lender or loan servicer right away. They may be able to explain your options and figure out an arrangement (deferment or otherwise) that can keep your account in good standing and help you avoid late fees and hurting your credit. END
 TITLE: What Is Deferred Interest? CONTENT: How Does Deferred Interest Work?\n--------------------------------\nWhen you shop for a major purchase, such as electronics, furniture or fitness equipment, a retailer may try to sweeten the deal by offering a zero-interest financing offer in the form of a loan or credit card. Some doctors and dentists also offer no-interest financing for procedures. While this type of offer can sound tempting, it usually has a catch and should be approached carefully.\nDeferred interest loans come with a set term, such as three years, during which time you'll be charged no interest. Here's the issue: The deal is only good if you pay off the loan in full by the end of that period. If you aren't able to pay it in full by then, perhaps due to an unexpected loss of income, you can get hit with all the interest you otherwise would have avoided. Some financing offers also revoke the deferred interest and retroactively charge you interest if you make even one late payment.\nIf your deferred interest comes due, the amount you'll be charged could be based on the entire balance of the loan from the start—not just your remaining balance. This can mean a large lump sum that's added to your loan balance. If the regular interest rate is high, which it often is with these offers, the lump sum amount can be shocking. This is one way lenders make money on these \"no-interest\" deals, because while many dutifully pay off their loan in full and on time, some don't.\nYou're most likely to see these deferred interest loans and credit cards at retailers, and you can recognize them with phrases like \"same as cash,\" \"no interest if paid in full\" or \"no interest for six months.\" END
 TITLE: What Is Deferred Interest? CONTENT: Does Deferred Interest Hurt Your Credit?\n----------------------------------------\nIn general, deferred interest financing or payments don't impact your credit any differently than traditional financing. When you defer interest, it still accrues, you just won't owe it if you pay off your balance in time (with a loan or credit card) or later on (with a mortgage).\nWhen it will hurt your credit is the same as with traditional credit—if you make late payments or miss them altogether. Even if a loan or credit card isn't being charged interest every month, you still must make at least a minimum payment toward the debt or risk consequences. This is important to remember if you took on deferred interest debt in an effort to delay paying for it.\nIn addition to a late payment's potential to harm your credit, it may also be enough for some lenders to end the deferral period prematurely and charge you full interest, which will only make matters worse.\nDon't take out a deferred interest financing product unless you're absolutely sure you can afford to make every payment on time, and before interest payments kick in. END
 TITLE: What Is Deferred Interest? CONTENT: Things to Consider With Deferred Interest Promotions\n----------------------------------------------------\nBefore you take out a deferred interest loan or credit card, here are a few things to keep in mind:\n*   Find out what the monthly payment will need to be to pay off the loan in full, before any deferred interest payments kick in. Double-check that the minimum payments will be enough to pay off the entire balance; if not, you'll need to pay more than that each month. Make sure this monthly payment will fit into your budget before you accept the offer. To be on the safe side, you may plan to pay off your debt a few months early.\n*   On the same note, ensure you're clear on the length of the promotional period and what the interest rate will be once it ends—that way if you're unable to pay off the balance before then, you'll know what interest rate to expect.\n*   Remember that even though you may not owe interest, you are still borrowing money that needs to be repaid. Phrases like \"no interest\" can make it feel like free money, but it's not; it's just paid back later.\n*   As you pay off deferred interest, check back in on your balance once you get a few months from the end of the term. If you worry your math was off and you're not sure you'll be able to pay off the rest of it before interest kicks in, you can always adjust your payments. END
 TITLE: What Is Deferred Interest? CONTENT: Explore Credit Cards With 0% Intro APR\n--------------------------------------\nIf you like the sound of zero-interest financing but don't want the risk of deferred interest credit cards or loans, a 0% APR credit card could be a great option. Try Experian's CreditMatch tool to find credit cards you qualify for with a no-interest introductory period. END
 TITLE: Should I Use a Personal Loan to Pay for My Education? CONTENT: Start With Federal Loans\n------------------------\nThere are two types of student loans you can get: federal and private. In most cases, federal loans are the better choice between the two. Here's why:\n*   Federal student loans typically charge lower interest rates than private loans, especially for undergraduate students.\n*   The U.S. Department of Education doesn't require a credit check for most borrowers.\n*   Federal loans come with several benefits most private lenders don't offer, including access to loan forgiveness programs, income-driven repayment plans and generous forbearance and deferment options.\n*   Undergraduate students with financial need may qualify for subsidized loans, which the federal government will pay the interest on as it accrues while you're in school at least half-time, during the six-month grace period after you leave school or fall below half-time enrollment and during future deferment periods.\nYou can find out how much federal loan money you qualify for by filling out the Free Application for Federal Student Aid (FAFSA). Your school's financial aid office will use the information listed on the application to provide a financial aid package, which will include your student loan eligibility for that school year.\nThat doesn't mean you should never consider private student loans, though. In some cases, federal loans and other forms of financial aid may not be enough to cover your full cost of attendance, and private loans can help bridge the gap—but proceed with caution.\nPrivate loans may also be worth considering if you're a graduate student or a parent of a student and have excellent credit. In this scenario, you may be able to qualify for a lower interest rate than what the federal government charges. END
 TITLE: Should I Use a Personal Loan to Pay for My Education? CONTENT: The Difference Between a Private Student Loan and a Personal Loan\n-----------------------------------------------------------------\nPrivate student loans and personal loans are similar in that they both require a credit check, and your interest rate and other loan terms depend on your credit and financial situation. However, there are some key differences to understand, especially if you're seriously considering both to help cover college costs or living expenses while you're in school. END
 TITLE: Should I Use a Personal Loan to Pay for My Education? CONTENT: Can I Use a Personal Loan to Pay Off a Student Loan?\n----------------------------------------------------\nIt is possible to use personal loan funds to pay off student loan debt, but it's generally not a good idea, especially if you have federal loans.\nThat's because personal loan companies typically don't provide the same deferment and forbearance options as private student loan companies, and they definitely don't offer access to the same benefits the Department of Education gives federal loan borrowers.\nAlso, personal loans typically come with higher interest rates than private student loans. So if your credit situation is excellent and you have a solid income, you may benefit from refinancing your student loans instead of consolidating them with a personal loan.\nAlternatively, if you're struggling with monthly payments and have federal loans, consider an income-driven repayment plan, which can reduce your payment to 10% to 20% of your discretionary income. END
 TITLE: Should I Use a Personal Loan to Pay for My Education? CONTENT: Build Credit to Save Money on Student Loan\n------------------------------------------\nEven if you get low interest rates on federal loans while you're in school, you may have the opportunity to score a lower interest rate through refinancing after you graduate. If you don't already have a credit card, consider applying for a student credit card to start working on building a credit history. Also, be sure to monitor your credit score regularly to make sure you stay on track toward your goal. END
 TITLE: How to Qualify for a Loan When You’re New to Credit CONTENT: Can You Get a Loan With No Credit?\n----------------------------------\nThere's a difference between having no credit history and having bad credit, and lenders understand this.\nWith no credit history, lenders may view you as a risky borrower simply because there's no information in a credit file about how you've handled debt. That uncertainty probably won't hurt your chances as much as a credit history marred by late payments, default or bankruptcy, however.\nIn other words, just because you're new to credit doesn't mean you have poor credit.\nIf you are new to credit, the most important thing is to know where to look when you're trying to find a loan. Big national banks typically don't have a lot of options for people with a thin credit file. Expand your search to include your local credit unions and online lenders.\nMany lenders offer prequalification, which allows you to get an idea of whether you'd get approved and what your interest rate and other terms might be before you apply. This process typically involves a soft credit check, which doesn't impact your credit scores.\nBefore you accept a loan, make sure you're clear on its terms and your ability to repay it. Getting off on the wrong foot with a loan you can't repay can make it challenging to get on the right path later, and make it harder to borrow in the future. END
 TITLE: How to Qualify for a Loan When You’re New to Credit CONTENT: Check Your Credit Before Applying for a Loan\n--------------------------------------------\nEven if you've never taken out a loan before, it's still a good idea to check your credit score and your credit report before you apply. If someone has stolen your personal information and opened fraudulent accounts in your name, you may need to deal with that before you try to borrow money.\nIf all is well, though, you may simply get a message that you don't have enough credit report information to calculate a credit score, and you can start to address that.\nIdeally, you'll have some lead time before you need to borrow, which will give you more runway to establish your credit. As you work to build your credit over time, regularly check your credit score before you apply to ensure that you're making progress, and take note of how it lines up with the lender's requirements. END
 TITLE: How to Qualify for a Loan When You’re New to Credit CONTENT: Loan Options for Those New to Credit\n------------------------------------\nIt's possible to qualify for a wide variety of loans if you're new to credit even without taking the time to establish your credit history. In general, though, you'll typically need a cosigner—a loved one with a solid credit history—to apply with you.\nCosigners agree to make payments on the loan if you can't, so they reduce the risk you pose to the lender as someone with no credit experience. That reduced risk improves your chances of getting approved and could open the door to a favorable interest rate to boot.\nIf you don't have a cosigner, however, here are your best options. END
 TITLE: How to Qualify for a Loan When You’re New to Credit CONTENT: Loan Options for Those With Bad Credit\n--------------------------------------\nWhether your credit history is limited or well established, negative marks can stifle your ability to get approved for affordable credit.\nWhile payday loans and auto title loans can be easy to get, they charge sky-high interest rates and usually have extremely short repayment terms. These two elements make it harder for borrowers to pay back their loans on time, which may force them to borrow again and again or else face default and potential legal action.\nAs such, it's best to avoid those options altogether. Here are some cheaper alternatives. END
 TITLE: How to Qualify for a Loan When You’re New to Credit CONTENT: Consider Building Credit Before Applying for a Loan\n---------------------------------------------------\nIf you're new to credit, you may feel like you're stuck in a Catch-22—you can't get a loan without credit, but you can't build credit without a loan.\nFortunately, there are other ways to get credit for the first time.\nThe easiest way is to become an authorized user on a loved one's credit card account. Once you've been added, the account's entire history will be added to your credit report, so it's important to do it only if you know the account has a positive history and a low balance relative to its credit limit.\nAlternatively, consider a secured credit card or an unsecured card for limited credit, like the Petal® Visa® Credit Card mentioned above. Before you open a credit card to build your credit, make sure the card issuer reports monthly payments to all three credit bureaus.\nOver time, check your credit report and credit scores regularly to view your progress and make adjustments as needed. Making all your payments on time and keeping your balance low will maximize the positive impact a credit card has on your credit scores.\nBuilding your credit file and improving your credit score will open up more opportunities to get approved for a loan at a reasonable rate. END
 TITLE: How to Qualify for a Loan When You’re New to Credit CONTENT: Don't Stop Monitoring Your Credit\n---------------------------------\nEven if you don't plan on borrowing money anytime soon, it's a good idea to keep track of your credit. Experian's credit monitoring service gives you free access to your FICO® Score☉ powered by Experian data, plus real-time alerts with each new inquiry and account.\nThe service not only makes it easier to watch your credit score grow and see which factors are influencing it, but it can also help you spot and remove potentially fraudulent or inaccurate information.\nAs you prioritize building and maintaining a good credit history, you'll benefit both now and in the future through lower interest rates and better terms every time you borrow money. END
 TITLE: Which Loans Should I Refinance Right Now? CONTENT: Reasons to Refinance a Loan\n---------------------------\nRefinancing replaces your current loan with a new loan. It doesn't decrease how much debt you owe, but can benefit you in several ways. It can:\n*   Lower your interest rate to save you money\n*   Lower your monthly payment to free up cash\n*   Switch you from a variable-rate loan to a fixed-rate loan\nEach benefit can be helpful in its own way, and sometimes you may be able to take advantage of more than one. However, you also want to review your current loan arrangements before refinancing.\nBecause you're paying off your current loan with a new loan, you may lose any interest rate discounts or other benefits your current lender offers. Take this into consideration when deciding which loans to refinance. END
 TITLE: Which Loans Should I Refinance Right Now? CONTENT: Is It Time to Refinance Your Mortgage?\n--------------------------------------\nFor homeowners, refinancing a mortgage can be particularly appealing. The large loan amount means even a small change in your interest rate can lead to significant changes in your monthly payment that add up to a lot of savings in the long run.\nEven if you got a mortgage or refinanced a mortgage last year, further rate drops stemming from the Fed's response to the economic turmoil caused by COVID-19 means it's worth taking another look. With mortgage refinancing, however, closing costs can limit your savings. And if you plan on moving soon, refinancing may actually wind up costing you more than you'll save.\nConsider your mortgage's current balance and see how much you'd pay if the closing costs set you back the typical 2% to 5% of the loan amount. For example, you may pay $4,000 to $10,000 on your $200,000 mortgage balance. If refinancing with a lower rate saves you $100 a month, it will take 40 to 100 months to break even. If you stay in the home and stick with the same mortgage for longer than that, you could save money.\nThe closing costs and savings can depend on the lender, interest rates and your creditworthiness, so shop around to see if you can find a good deal and if the numbers add up.\nEven if it doesn't lead to significant savings, you may also want to consider refinancing an adjustable-rate mortgage with a fixed-rate mortgage. Although the fixed rate may be higher than today's adjustable rate, locking in a low rate could be helpful when interest rates climb again. END
 TITLE: Which Loans Should I Refinance Right Now? CONTENT: Consider Refinancing Auto Loans\n-------------------------------\nFiguring out if refinancing an auto loan makes sense will be easier than the mortgage calculation because auto loans generally don't require closing costs or origination fees. If you can qualify for a lower interest rate than your current loan, refinancing an auto loan probably makes sense. But there are a few caveats.\nIf your current auto loan has a prepayment penalty, consider the extra expense and compare it to the potential savings.\nAlso, run the numbers if you're thinking about refinancing with a loan that has a longer repayment term. You may wind up with a lower monthly payment but pay more interest overall. That's not necessarily a bad thing if you need the extra money today, but know what you're getting into before signing a contract.\nTo learn more about the potential savings you can realize by refinancing, explore your auto loan refinancing options with Experian partner RateGenius. END
 TITLE: Which Loans Should I Refinance Right Now? CONTENT: Think About Refinancing Private Student Loans\n---------------------------------------------\nWhen it comes to student loans, there's more at play than the interest rate and monthly payment. Many borrowers have federal student loans, which come with special repayment and forgiveness programs, including paused payments and 0% interest on federally held loans in response to the coronavirus pandemic.\nFederal student loans are also eligible for income-driven repayment plans, which you can switch to for free and can lead to lower payments based on your income. But if you refinance your student loans, you'll need to do so with a private student loan.\nPrivate lenders may offer some benefits, but your loans will no longer be eligible for the federal repayment, forgiveness or special programs. Refinancing may be a good idea if you can lower your interest rate and save money, but you may want to build your emergency fund and feel confident about your employment before refinancing. END
 TITLE: Which Loans Should I Refinance Right Now? CONTENT: How Does Refinancing Affect Your Credit?\n----------------------------------------\nRefinancing an installment loan (such as a mortgage, auto or student loan) can impact your credit in several ways, but it generally won't have a major effect:\n*   **New hard inquiries**: Applying for a new loan can lead to a hard inquiry, which may temporarily hurt your scores a little. Multiple hard inquiries can also increase the impact; however, you can shop for the best offer before accepting a loan. Credit scoring models will generally combine multiple hard inquiries for a single loan type, such as a mortgage, auto or student loan, if the inquiries all happen within a 14-day period (some credit scoring models give you up to 45 days).\n*   **A new account**: Your loan will be a new account, which will lower the average age of accounts on your credit report. This is a minor factor in your credit scores but still may hurt your credit a little.\nRefinancing can also help your credit in the long run if it makes your payments more affordable, which can make it easier to afford all your payments on time in the future. Also, as you repay your loan with on-time payments, those payments can contribute toward your positive credit history. END
 TITLE: Which Loans Should I Refinance Right Now? CONTENT: Start With a Credit Check\n-------------------------\nLower interest rates can be a good prompt to see if refinancing your loans makes sense. However, your creditworthiness will impact your ability to get the lowest possible rate. You may want to check your credit as a first step when researching any type of refinancing, and you can do so with a free Experian account. You'll also receive free credit monitoring, a credit score tracker and plenty of other helpful features. END
 TITLE: How to Cash a Check CONTENT: Where to Cash a Check Without a Bank Account\n--------------------------------------------\nIf you need to cash a check and you don't have a bank account, check out the following options. Quick tip: It's important to know what type of check you have—payroll, personal, government or certified—before choosing a place to cash it, as some check-cashing services will only accept certain types of checks.\n*   **Issuing Bank.** When someone writes you a check, they are essentially writing on a piece of paper how much money they want to give you from their checking account. As such, the bank the money is coming from is called the \"issuing bank.\" If you don't have a bank account, sometimes the issuing bank will cash your check—because they can see the exact balance of the account being debited. While not all issuing banks do this, some do, and typically for a fee of a few dollars. Call ahead to ask the issuing bank whether you can cash a check without being an account holder.\n*   **Check-Cashing Store.** A check-cashing store is one of the easiest—and most expensive—locations to cash a check without a bank account. All you need is your ID, in some cases two forms of ID, and you can walk out with your money after paying a fee. Check-cashing stores typically charge anywhere between 1 percent and 4 percent of the check's value, and some charge additional flat rates on top of that. Check-cashing stores typically do not cash personal checks. Sometimes stand-alone stores also offer payday loans and other cash services. Find out the fees and check out alternatives before using these sources.\n*   **Grocery Stores and Big-Box Retailers.** Stores like Walmart, Kmart, and even some supermarkets have on-site check-cashing services. These retailers often charge much less for their services and can be good alternatives to stand-alone check-cashing stores. Kmart cashes government and payroll checks of up to $2,000 and two-party personal checks of up to $200 for a fee of only $1. Make sure to have your ID ready when cashing a check at a retailer. END
 TITLE: How to Cash a Check CONTENT: Open a Checking Account\n-----------------------\nOpening a checking account can come with a lot of advantages, such as paycheck direct deposit and check cashing. To open a checking account, all you need to do is choose a bank and an account type and apply with proper identification.\nUnlike applying for a credit card, opening a checking account does not require a credit check. Banks will use your Social Security number to look for any major financial blemishes in your past—like a history of mismanaged bank accounts—but in most cases opening a checking account should be easy.\nMost banks offer several checking account options, and the one you choose will depend on how you plan to use the account. Take a close look at the fees associated with overdrafts and minimum balances to help you understand which account is best for you. Here are a few things to consider before selecting a checking account.\n*   How much money will you keep in your account?\n*   Will you be using a debit card often, or do you need a physical bank nearby?\n*   How often do you plan to use your debit card or write checks? Some checking accounts limit the number of these transactions. END
 TITLE: How to Cash a Check CONTENT: What to Do If You Have Been Denied a Bank Account\n-------------------------------------------------\nIf you tried to open a checking account but were denied, it might mean the bank found something alarming in your banking history. This history is kept by companies called debit bureaus, and similar to credit bureaus, these companies keep a record of your interactions with past banks. Companies like [ChexSystems]()\/!ut\/p\/z1\/04_Sj9CPykssy0xPLMnMz0vMAfIjo8ziDRxdHA1Ngg183AP83QwcXX39LIJDfYwM_M30w1EV-HuEGAEVuPq4Gxt5G7oHmuhHkaQfTYGBOZH6cQBHA8rsByqIwm-8FyELgCFoVOTr7JuuH1WQWJKhm5mXlq8foQm0OApVK1rQ-ZoTUAAKW7yWG8BNwO38gtzQ0NCIKp-0YM9MALwxjpw!\/dz\/d5\/L2dBISEvZ0FBIS9nQSEh\/), a well-known debit bureau, are regulated by the Fair Credit Reporting Act and issue debit bureau reports that banks use to evaluate applicants.\nIf you were denied a bank account, you should receive information about your denial from the bank, including which debit bureau they used to make the decision. You can obtain a free copy of the reports used directly from the debit bureau. Be sure to inspect your reports closely, as mistakes happen, and inaccurate information could be listed in your reports.\nStaying on top of your finances is important in ensuring you can get approved for things like checking and savings accounts. If you have had trouble in the past, think about making a budget and be sure not to overextend yourself. You can find out what appears in your credit reports for free at Experian. END
 TITLE: How Do You Protect Your Personal Information Online? CONTENT: Safeguarding your information online will protect you from identity theft, which is when others steal your financial details or identifying information like your address or Social Security number.\nIdentity theft could result in fraudulent charges on your credit card, or even stolen tax refunds if your Social Security number is compromised. Follow these guidelines to avoid both the small headaches and more devastating consequences of identity theft. END
 TITLE: How Do You Protect Your Personal Information Online? CONTENT: 1\\. Create Strong Passwords\n---------------------------\nNo one should be expected to keep all their passwords straight based on memory alone. But that doesn't mean you should use the same one over and over.\nInstead, create separate passwords for each online account that incorporate up to five words that don't ordinarily appear together, plus a mix of capital and lowercase letters and special characters. Or, as password manager Dashlane suggests, come up with a phrase that's meaningful to you, then create a password using the first letter of each word and unique special characters.\nEven better: Download a password management tool like LastPass, 1Password or Dashlane, which will store your passwords and even help you generate strong ones. A recent study by security consulting firm Independent Security Evaluators found flaws in some password managers. Still, experts say they're one of the safest ways to store and organize your information.\nWhen possible, use two-factor authentication. That means your account has a second layer of protection: You'll get a text message with a passcode to enter after logging in with your password, for instance. END
 TITLE: How Do You Protect Your Personal Information Online? CONTENT: 2\\. Set Firm  Settings\n-----------------------------\nRegularly revisit the privacy settings on each of your social media accounts, including what information you share publicly and with friends. You'll be safest only allowing friends to see your posts, comments and profile information.\nSocial media companies' privacy policies may change, too, so take a deep dive into those to avoid being surprised by the entities that have access to your posts or demographic data. Update your settings so that you don't inadvertently share information with websites or apps connected to your social media accounts. They could sell your data or browsing history to advertisers, which may mean you have less control over your online presence than you think.\nIt's also best to avoid logging into other websites with your social media credentials. You may see \"Sign Up With Facebook\" or \"Sign Up With Google\" options, for instance, when prompted to create a new account on a third-party website. But condensing the number of passwords you use means one security breach could affect your safety on multiple sites and apps. END
 TITLE: How Do You Protect Your Personal Information Online? CONTENT: 3\\. Avoid Oversharing on Social Media\n-------------------------------------\nYou probably know that posting photos of your address, driver's license, credit card or other personal information on social media is a no-no, since that data could get into the wrong hands.\nBut you may share sensitive details without realizing it if, perhaps, you have location services enabled. Thieves could gather data from your posts about where you live or the fact that you're currently traveling, meaning your house or apartment could be singled out for burglary.\nCheck your phone's settings so that you're not accidentally sharing your location with any apps, even beyond those you use for social networking. Otherwise, someone who steals or hacks your phone could gain a wealth of information about your daily patterns of behavior, which could affect your physical safety.\nFinally, make it a policy to accept friend requests only from people you actually know, even on a professional networking site like LinkedIn. The more strangers you're connected to, the less control you have over where your photos or personal details end up. END
 TITLE: How Do You Protect Your Personal Information Online? CONTENT: 4\\. Close Online Accounts You No Longer Use\n-------------------------------------------\nIf you have a dormant former email address or social media account, shut it down. Any data stored there—sensitive information in your emails, photos or documents you sent as attachments, for instance—could be compromised in a security breach affecting those companies.\nIf you decide to invest in a password management tool, spending a few hours entering your current accounts and their associated passwords will help you identify ones you don't access often. The password manager will also end up serving as a database of all your online accounts, so you can review them once or twice a year and close unused ones. END
 TITLE: How Do You Protect Your Personal Information Online? CONTENT: 5\\. Steer Clear of Phishing\n---------------------------\nPhishing is a way for fraudsters to deceive you into sharing your personal information, like usernames, passwords or financial details. For instance, a scammer may send an email posing as a reputable entity like your company's IT department or a financial firm, and include a link to reset a password or update your computer's software.\nBut clicking the link and sharing your password or personal information will put your security at risk. Following a link in a phishing attack may install malicious software, or malware, on your device, allowing fraudsters to find personal information that could lead to identity theft. Phishing can happen via phone or text message, too, and angler phishing happens when a scammer contacts you posing as a company you've recently complained about on social media.\nTo avoid sharing information you shouldn't, use caution when you receive a message from someone you don't recognize with a request to click a link or take urgent action. Familiarize yourself with telltale signs of phishing scams, like spelling errors in emails, a vague salutation that doesn't include your name, and email addresses or URLs in the message that aren't quite in line with the company they're supposedly associated with.\nThe more information you share online, the more that can be compromised by those who don't have your best interests in mind. But stay vigilant and communicate online with a healthy amount of skepticism, and data that's private will stay that way. END
 TITLE: Should I Pay Bills with a Credit Card or Checking Account? CONTENT: Putting your monthly bills on a credit card might be good for you if:\n### You Want to Get the Most of Your Credit Card's Perks\nIf you find the right credit card for your needs, every dollar you spend can earn rewards, get you cash back or help you qualify for a sign-up bonus. A card with a $500 bonus, for example, might require a $3,000 minimum spend to get the bonus, which can be hard to reach unless you use it to pay bills. If you earn cash back or travel miles every time you use your credit card, paying your bills this way could earn you a free trip to Paris or a sizable statement credit on your account.\nPaying your bills with a credit card can also give you access to purchase protection, depending on the card. For example, if you pay your internet bill with a credit card and your service cuts out frequently, you could request a chargeback through your credit card company if the provider doesn't give you a refund or discount.\n> Find the best cash back credit cards in Experian CreditMatch™.\n### You Pay Your Bills in Full Every Month\nAs long as you pay your credit card bill on time and in full each month, you generally won't see a negative impact on your credit score. In fact, regularly paying your credit card on time shows that you're a responsible borrower. If you don't have any other lines of credit, regularly using a credit card will help boost your credit score as long you pay it off each month. (See a possible exception regarding credit utilization ratios below.)\n### You Want to Ensure On-Time Payments\nUsing a credit card for bills can be helpful if you need to pay your rent or heating bill, but payday isn't until next week. In this situation, using a credit card can give you some wiggle room and help you avoid overdraft fees. However, make sure you pay the debt on your card once you get your paycheck. Putting bills on your credit card because you don't have the cash to pay them can lead you down a dangerous road and result in debt that could become unmanageable. END
 TITLE: Should I Pay Bills with a Credit Card or Checking Account? CONTENT: Which Bills Can I Pay with a Credit Card?\n-----------------------------------------\nYou can typically pay the following bills by credit card. Check with your providers to find out whether they charge a convenience fee to process your credit card payment. (If they do, it's usually smarter to pay from your checking account.) And look at the company's website or your paper statement to see what your options are.\n*   Utility providers\n*   Cable and internet companies\n*   Cell phone providers\n*   Subscription services\nTypically, the following providers do not allow you to pay by credit card or charge fees for you to do so. Exceptions exist, however, so check with your providers if you'd like to pay these bills by credit card.\n*   Mortgage companies\n*   Auto lenders\n*   Landlords\n*   Auto and home insurance companies\n*   IRS and state tax collectors\n*   Student loan providers END
 TITLE: Should I Pay Bills with a Credit Card or Checking Account? CONTENT: Paying Bills with a Credit Card Could Impact Your Credit Score\n--------------------------------------------------------------\nOne risk that comes with putting your bills on a credit card is the possibility of running up a balance and not paying it off in full. If you rack up $500 on a card and only make the minimum payment, you'll be hit with interest charges until the balance is paid off completely.\nEven if you pay off your balance in full every month, your credit utilization ratio could increase and hurt your credit score. Credit utilization is how much of your available credit you use every month, and is the second-most important factor in your credit score. This factor can determine up to 30% of your credit score.\nTo determine your credit utilization ratio, divide the total of your current credit card balances by your available credit. For example, if your credit card balances total $4,000, and your total credit limit across all your cards is $10,000, your utilization ratio is 40%. A credit utilization ratio of 30% or more will likely decrease your credit score. Why? A high percentage makes lenders think you're relying too heavily on credit cards to fund your lifestyle. For the best scores, it's a good idea to keep your utilization below 10%.\nA simple way to prevent high utilization is to pay your credit card bill twice in one month. Your statement balance is what's used to determine your credit utilization ratio, so if you can pay part of your bill off before the statement generates, you'll be able to keep your utilization ratio low. END
 TITLE: Should I Pay Bills with a Credit Card or Checking Account? CONTENT: Closing a Credit Card Can Hurt Your Credit Score\n------------------------------------------------\nThe average age of all your open credit accounts is another important factor in determining your credit scores. Every time you open a new loan or credit card, your average credit age goes down. A longer credit history shows potential banks and lenders that you have experience paying money back responsibly.\nClosing old accounts will also influence your credit age negatively. If you've had a credit card for eight years and it doesn't fit your needs anymore, closing it may not be the best idea. Instead, keep it open and make a few small purchases with it every month. Let the statement close and then pay the balance off in full.\nConsistently using an old credit card can be hard to remember, especially if your wallet is full of other cards you use regularly. But if your account is inactive for long enough, the credit card provider might assume you don't need the card and close it. Sometimes you'll receive a notice in advance, but it might come as a surprise.\nAn easy way to keep the account active is to schedule a recurring bill payment every month, like your Netflix subscription or gym membership. Make sure you don't assign too many recurring bills that increase the utilization past 30%. Then, set the credit card bill to autopay so you don't miss the payment. END
 TITLE: Should I Pay Bills with a Credit Card or Checking Account? CONTENT: When Should I Use a Checking Account to Pay My Bills?\n-----------------------------------------------------\nNot all lenders or utility companies allow people to pay their bills with a credit card. Your landlord will probably not accept a credit card, and if they do, you'll likely be charged a processing fee of 3% or so. That will almost always negate any rewards you might see from the card. A $1,000 rent payment could net you $20 in rewards with a 2% cash-back credit card, for example, but cost $30 in fees.\nSometimes paying with a checking account can actually save you money. Some providers offer a discount when you pay with a checking account, because they don't have to pay for credit card processing. Call and ask if your service provider offers an incentive for paying in cash.\nBill autopay offers another advantage to using your checking account to pay bills. If you tend to pay bills past their due date, autopay helps you stay current and avoid late fees.\nIn addition, paying your bills through your checking account's bill pay function may soon allow you to improve your credit score. Experian Boost™† is new tool that can track your utility and telecom payments and, if you show positive payments for at least three months, you'll likely get an immediate boost to your credit score. Visit experian.com\/boost now to register. END
 TITLE: What Is a Payday Loan and How Does It Work? CONTENT: How Do Payday Loans Work?\n-------------------------\nPayday loans function differently than personal and other consumer loans. Depending on where you live, you can get a payday loan online or through a physical branch with a payday lender.\nDifferent states have different laws surrounding payday loans, limiting how much you can borrow or how much the lender can charge in interest and fees. Some states prohibit payday loans altogether.\nOnce you're approved for a payday loan, you may receive cash or a check, or have the money deposited into your bank account. You'll then need to pay back the loan in full plus the finance charge by its due date, which is typically within 14 days or by your next paycheck.\nPayday loans come with a finance charge, which is typically based on your loan amount. Because payday loans have such short repayment terms, these costs translate to a steep APR. According to the Consumer Federation of America, payday loan APRs are usually 400% or more.\nDespite the high costs, The Economist estimates that roughly 2.5 million American households take out payday loans each year. There are a few reasons for this popularity. One is that many people who resort to payday loans don't have other financing options. They may have poor credit or no income, which can prevent them from getting a personal loan with better terms.\nAnother reason may be a lack of knowledge about or fear of alternatives. For example, some people may not be comfortable asking family members or friends for assistance. And while alternatives to payday loans exist, they're not always easy to find.\nMany people resort to payday loans because they're easy to get. In fact, in 2015, there were more payday lender stores in 36 states than McDonald's locations in all 50 states, according to the Consumer Financial Protection Bureau (CFPB).\nPayday lenders have few requirements for approval. Most don't run a credit check or even require that the borrower has the means to repay the loan. All you typically need is identification, a bank account in relatively good standing and a steady paycheck. END
 TITLE: What Is a Payday Loan and How Does It Work? CONTENT: How Much Can I Borrow with a Payday Loan?\n-----------------------------------------\nThe median payday loan is $350 on a two-week term, according to the CFPB. But payday loans can range from $50 to $1,000, depending on your state's laws. Currently, 32 states allow payday lending with a capped maximum loan amount. Maine, Utah, Wisconsin and Wyoming do not have a cap. Delaware, Idaho and Illinois have the highest cap amount at $1,000, while California and Montana have the lowest at $300.\nSome states, including Nevada and New Mexico, also limit each payday loan to 25% of the borrower's monthly income. For the 32 states that do permit payday lending, the cost of the loan, fees and the maximum loan amount are capped.\n**Note**: 37 states have specific statutes that allow for payday lending. Some states do not have specific payday lending statutory provisions and\/or require lenders to comply with interest rate caps on consumer loans: Connecticut, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, Vermont, and West Virginia. Arizona and North Carolina allowed pre-existing payday lending statutes to sunset. Arkansas repealed its pre-existing statute in 2011. New Mexico repealed its payday lending statutes in 2017. The District of Columbia repealed its pre-existing statutory provision in 2007. END
 TITLE: What Is a Payday Loan and How Does It Work? CONTENT: What Are the Costs of a Payday Loan?\n------------------------------------\nThe costs associated with payday loans are set by state laws with fees ranging from $10 to $30 for every $100 borrowed. A two-week payday loan usually costs $15 per $100.\nFor example, let's say you borrow $100 for a two-week payday loan and your lender is charging you a $15 fee for every $100 borrowed. That is a simple interest rate of 15%. But since you have to repay the loan in two weeks, that 15% finance charge equates to an APR of almost 400% because the loan length is only 14 days. On a two-week loan, that daily interest cost is $1.07.\nIf the loan term were one year, you would multiply that out for a full year—and borrowing $100 would cost you $391. Your lender must disclose the APR before you agree to the loan. While it's typical to see an APR of 400% or higher, some payday loans have carried APRs as high as 1,900%. By comparison, APRs on credit cards typically range from 12% to 30%. END
 TITLE: What Is a Payday Loan and How Does It Work? CONTENT: How Do I Repay a Payday Loan?\n-----------------------------\nYou're generally required to repay a payday loan with a single payment by your next payday. Because lenders have varying repayment terms, make sure to ask for the specific due date or check for the date in the agreement.\nDepending on the lender, you may have a few options to pay off your debt:\n*   A postdated check when you apply\n*   A check on your next payday\n*   Online through the lender's website\n*   A direct debit from your bank account\n*   Another form of credit\nIf you don't repay the loan when it is due, the lender can electronically withdraw money from your account.\nUnfortunately, many payday loan borrowers can't repay the debt by the due date. In fact, the CFPB found that 20% of payday borrowers default on their loans, and more than 80% of payday loans taken out by borrowers were rolled over or reborrowed within 30 days. END
 TITLE: What Is a Payday Loan and How Does It Work? CONTENT: What Is a Rollover Loan?\n------------------------\nSome payday lenders will offer a rollover or renew feature when permitted by state law. If the loan is set to be due soon, the lender allows the old loan balance due to roll over into a new loan or will renew the existing loan again.\nThis way, the borrower would pay only the fees while the due date for the larger loan balance is extended to a future date. This gives the borrower more time to repay the loan and fulfill their agreement. But it also means racking up big fees if they continue in the cycle. END
 TITLE: What Is a Payday Loan and How Does It Work? CONTENT: What if I Am in the Military?\n-----------------------------\nIf you're an active-duty service member or a dependent of one, there are protections in place for service members through the Military Lending Act (MLA). The extended MLA protections include a 36% Military Annual Percentage Rate (MAPR) cap to a wider range of credit products, including payday loans, vehicle title loans, refund application loans, deposit advance loans, installment loans and unsecured open-end lines of credit.\nThe cap additionally applies to fees tacked on for credit-related ancillary products, including finance charges and certain application and participation fees. END
 TITLE: What Is a Payday Loan and How Does It Work? CONTENT: How Do Payday Loans Affect My Credit?\n-------------------------------------\nBecause payday lenders often don't run a credit check, applying for a payday loan doesn't affect your credit score or appear on your credit report. Also, payday loans won't show up on your credit report after you've accepted the loan. As a result, they don't help you improve your credit score.\nThat said, they can appear on your credit report if the loan becomes delinquent and the lender sells your account to a collection agency. Once a collection agency purchases the delinquent account, it has the option to report it as a collection account to the credit reporting bureaus, which could damage your credit score. END
 TITLE: What Is a Payday Loan and How Does It Work? CONTENT: Are There Options to Help Pay off My Payday Loan?\n-------------------------------------------------\nDebt consolidation is an option to help you repay a payday loan debt, even if you have bad credit. While bad credit debt consolidation loans have stricter approval requirements, they typically charge much lower interest rates and fees than payday lenders. They also tend to offer longer repayment terms, giving you more breathing room.\nBecause it typically offers a lower interest rate and longer repayment term, a consolidation loan can have a lower monthly payment to help you manage your debt repayment. Additionally, the debt will show up on your credit report, which can help you work on building your credit score as long as you make loan payments on time. END
 TITLE: What Is a Payday Loan and How Does It Work? CONTENT: How Can I Find out If a Payday Lender Is Licensed in My State?\n--------------------------------------------------------------\nNot all states allow payday lending, but those that do require payday lenders to be licensed. If a payday loan is made by an unlicensed lender, the loan is considered void. This means that the lender doesn't have the right to collect or require the consumer to repay the payday loan.\nEach state has different laws regarding payday loans, including whether they're available through a storefront payday lender or online. In states that allow payday lending, you can find information about licensing through your state's bank regulator or state attorney general. END
 TITLE: What Is a Payday Loan and How Does It Work? CONTENT: Is a Payday Loan Worth the Risk?\n--------------------------------\nA payday loan can solve an urgent need for money in an emergency situation. However, because these loans usually have a high APR, if you can't pay it back on time, you could get caught in a vicious cycle of debt.\nBottom line: It's important to consider all your options before approaching a payday lender. END
 TITLE: What Is a Payday Loan and How Does It Work? CONTENT: What Are Alternative Options to a Payday Loan?\n----------------------------------------------\nIn most cases, you shouldn't need to resort to using a payday loan. Here are a few alternatives that may meet your needs and save you money.\n### Bad Credit Personal Loans\nSome personal lenders specialize in working with people with bad credit. Whether you need to cover some basic expenses, cover an emergency or consolidate debt, you can usually get the cash you need.\nAnd while your interest rates will be higher than on other personal loans, they're much lower than what you'll get with a payday loan.\n### Family or Friends\nAsking a loved one for financial assistance is never a fun conversation. But if the alternative is being driven deeper in debt, it may be worth it. Just be sure to create an official agreement and stick to it to avoid damaging your relationship.\n### Bad-Credit Credit Cards\nMost credit cards designed for people with bad credit require a security deposit, which won't help your cash shortage. But some credit card issuers offer unsecured credit cards with low credit requirements.\nRetail credit cards, for instance, are often in reach for people with bad credit. And while they typically come with low credit limits, many of them can be used outside the store.\nEven some bank-issued cards, such as the Indigo® Platinum Mastercard®, accept borrowers with low credit scores. END
 TITLE: What Is a Payday Loan and How Does It Work? CONTENT: Know Your Options\n-----------------\nPayday loans can provide borrowers with short-term cash when they need it, but they're not the only option available. If you need cash, make sure to consider all of your options before opting for one that could make your life more difficult.\nAnd if you have bad credit, be sure to check your credit score and report to determine which areas need your attention. In some cases, there could be erroneous information that could boost your credit score if removed. Whatever you do, consider ways you can improve your credit score so that you'll have better and more affordable borrowing options in the future.\n* * *\n**Want to instantly increase your credit score?** Experian Boost™ helps by giving you credit for the utility and mobile phone bills you're already paying. Until now, those payments did not positively impact your score.\nThis service is completely free and can boost your credit scores fast by using your own positive payment history. It can also help those with poor or limited credit situations. Other services such as credit repair may cost you up to thousands and only help remove inaccuracies from your credit report. END
 TITLE: Why Do You Want a Good Credit Score? CONTENT: Americans often rely on credit—the ability to buy things with borrowed money that's paid back over time—to finance major purchases, such as buying a car or home, and to make life easier with conveniences like credit cards, which can help you manage your daily spending. To determine whether you qualify for such loans, lenders may look at a number of factors, including your income, debt-to-income ratio, and even employment history.\nBut they also almost always rely on an automated evaluation process that includes considering your credit scores and credit history to determine how likely you are to pay back your debts on time. A credit score is a three-digit number that's calculated by applying a mathematical algorithm to the information in one of your three credit reports (from Experian, TransUnion or Equifax), which are updated regularly with information from your credit accounts. Typically, the higher your credit scores, the more likely you are to qualify for loans with the most favorable terms, including lower interest rates, higher dollar amounts, and potentially lower fees.\nHaving a good credit score comes with many advantages, including:\n### 1\\. Significant Savings on Interest Rates on Big-Ticket Loans\nWhen you take a large loan to finance a big purchase like a home or car, even a small difference in the interest rate can translate into thousands of dollars over the lifetime of a loan. Borrowers with the highest credit scores are generally able to secure the lowest interest rates available at a given time for a mortgage or auto loan. And that can mean big bucks.\nFor example, a 30-year fixed mortgage of $250,000 at 5.5% will cost a borrower a total of $511,010 over the lifetime of the loan. If that same borrower can get a 4.5% interest rate—just one percentage point lower—she will pay $456,017 over the life of the loan, a difference of $54,993.\n### 2\\. Better Terms and Availability on Loan Products\nBorrowers with strong credit scores will have access to the most loan and credit card products available since lenders will want to lend to them. They will be able to shop around and compare rates more effectively. They'll also find the best terms, including higher dollar limits, which can make it easier to finance big purchases.\n### 3\\. Access to the Best Credit Cards\nHigh credit scores will afford you access to the most rewarding credit cards on the market, including those that offer the lowest interest rates and the best rewards, such as cash back offers, travel points, and other incentives. You are also more likely to qualify for an introductory 0% APR purchase and balance transfer offers, which can translate to significant savings over time.\n> Find the best credit cards in Experian CreditMatch™.\n### 4\\. Insurance Discounts\nYou can't be turned down for insurance if you have a low credit score, but having a high score can help you qualify for lower insurance premiums on car insurance.\n### 5\\. More Housing Options\nSome landlords of rental management companies consider a potential tenant's credit scores to determine whether they are financially trustworthy. The higher your credit scores, the more likely you are to be approved for a home or apartment rental. You could also save money on your security deposit if you have higher credit scores.\n### 6\\. Security Deposit Waivers on Utilities\nSome utility companies may consider your credit reports and scores to determine how likely you are to pay your bills on time. If you don't have a strong credit history, you may have to pay a security deposit to initiate utility services. END
 TITLE: Why Do You Want a Good Credit Score? CONTENT: What Is a Good Credit Score?\n----------------------------\nWhile there are countless credit scoring models on the market, one of the most commonly used is the FICO® Score☉ model, which places scores in a range between 300 and 850. FICO® breaks up these scores into the following credit scoring bands:\n*   **Exceptional**: 800 and above\n*   **Very Good**: 740 to 799\n*   **Good**: 670 to 739\n*   **Poor**: 579 and below\nGenerally, a score of 700 or above in the FICO® model is considered a good credit score in most lenders' eyes. END
 TITLE: Why Do You Want a Good Credit Score? CONTENT: How Can I Improve My Credit Scores?\n-----------------------------------\nWhile each consumer likely has dozens, if not hundreds, of credit scores, the good news is that what makes scores go up or down across different models is almost always the same. It's just that different models may apply different weights to certain factors.\nThere is no secret sauce to getting good credit scores. Generally speaking, the best way to improve your credit scores is to do the opposite of what caused them to go down in the first place, and give yourself enough time for them to improve. While each scoring model gives different weight to the factors that affect your score, there are usually seven factors that go into determining your scores:\n*   **Payment history**: This is typically one of the most important factors—roughly 30% to 35%—in determining your score in most scoring models. Late or missed payments bring your credit score down. Conversely, if you have a long history of paying your bills on time, your score will generally be higher. The most important thing you can do to boost your credit scores is to pay all your bills on time every month. If you establish a pattern of doing this over time, your scores will improve.\n*   **Credit utilization ratio**: This is the amount of revolving credit you're actively using compared with the amount of credit available to you, based on your credit card limits. The lower the ratio, the higher your credit score. Aim to keep your utilization ratio under 30%, but for the best scores, you'll want to keep it under 10%.\n*   **Number of accounts**: Credit scoring models also look at how many credit accounts you have open and on how many you carry balances. It's better to have more accounts that don't have a balance than ones on which you do carry a balance.\n*   **Credit history**: Most scoring models also look at how long you have actively used credit. They typically look at the average age of all your open accounts. The longer your credit history, the better it is for your score. You can't do much about this one, other than let time do its thing.\n*   **Credit mix**: Scoring models also take into account what types of credit you have, including installment loans and credit cards. To improve your credit score, aim for a good mix of different types of credit.\n*   **Hard inquiries**: When you apply for a new credit card or another kind of loan, the lender will request your credit report. That is considered a \"hard inquiry\"—and too many can lower your score slightly. However, multiple inquiries of the same kind—if you're shopping for a car loan, for example—during the same period are often treated as one inquiry. The impact of hard inquiries goes down the older the inquiries are.\n*   **Negative credit information**: If your credit report has negative financial information, like a bankruptcy or collection account, that can negatively affect your credit score, as well.\n* * *\n**Want to instantly increase your credit score?** Experian Boost™ helps by giving you credit for the utility and mobile phone bills you're already paying. Until now, those payments did not positively impact your score.\nThis service is completely free and can boost your credit scores fast by using your own positive payment history. It can also help those with poor or limited credit situations. Other services such as credit repair may cost you up to thousands and only help remove inaccuracies from your credit report. END
 TITLE: How Experian CreditMatch™ Can Help You Save Money CONTENT: What Is Experian CreditMatch?\n-----------------------------\nComparing your options and offers before opening a credit card or taking out a loan is a savvy way to save money. But reviewing credit card perks and fees, and lenders' rates and terms, can be confusing and time-consuming. Experian CreditMatch makes comparison shopping easy.\nWhen you create an Experian account, you get free access to your Experian credit report and FICO® Score☉ , which are updated every 30 days. From the credit dashboard, you can see a summary of your credit history, including which factors are most helping and hurting your scores.\nAdditionally, Experian partners with lenders and can help you find auto insurance. We use your unique credit profile and information from our partners to understand which products you'll most likely qualify for and benefit from using.\nExperian receives compensation from its partners. However, unlike some comparison services, the compensation doesn't influence how we rank credit card or loan offers. Those matches and the order they appear in will depend on what's best for you based on your unique credit profile and our independent analysis. END
 TITLE: How Experian CreditMatch™ Can Help You Save Money CONTENT: Get Matched to Credit Card Offers\n---------------------------------\nIf you're looking for a new credit card, the CreditMatch credit card marketplace can match you with different cards and personalized offers based on your credit profile and the cards' features without logging in. (Personalized offers are not available in certain states.)\nYou can look through all your matched cards, or even the unmatched cards that are available. You can also filter the cards based on the card type, such as rewards, balance transfer or no annual fee. If you have an Experian account, after logging in CreditMatch will also highlight up to three top matches for you. If several cards catch your eye, you can choose up to four for a side-by-side comparison.\nYou'll also see Experian's Estimated Approval Odds, which are calculated based on your credit profile and the card issuer's acceptance standards (when they are known). END
 TITLE: How Experian CreditMatch™ Can Help You Save Money CONTENT: Prequalify for Personal Loans\n-----------------------------\nYou can also use CreditMatch to quickly compare personal loan offers. Once you're signed in, you can create and submit a loan prequalification application, which won't affect your credit score. Here's how it works:\n*   Choose a loan amount and purpose, such as debt consolidation or making a major purchase.\n*   Add your individual income, employment status and monthly housing payment.\n*   Confirm your personal information.\n*   Temporarily remove any credit freezes you may have on your credit reports to allow lenders to prequalify you.\nExperian quickly sends out your information to gather prequalified loan offers from our partner lenders. You can then compare the estimated monthly payment, annual percentage rate (APR), term and total cost for each loan. Your offers are good for 30 days, giving you time to decide which option is best. END
 TITLE: How Experian CreditMatch™ Can Help You Save Money CONTENT: Find Other Savings Opportunities\n--------------------------------\nYou can also use your Experian account to better understand your finances and find new ways to save. Within the Finances tab, you'll find three sections:\n*   **Personal Finances**: You can securely connect your financial accounts to track your personal savings and spending. The Personal Finances tool helps you stay on top of your finances with custom alerts, such as when there's a large transaction or your account balance drops. It will also show you your top spending categories for each month and even provide spending updates during the month.\n*   **Savings Center**: Review opportunities based on your financial situation, such as student loan refinancing, 0% introductory APR balance transfers and less expensive auto insurance policies. Each will have a rating for how much you can save, how long it will take to get the savings relative to other opportunities, and links to specific offers and options.\n*   **My Credit Cards**: Add your current credit cards to see a breakdown of the cards' major perks. Then learn how you can use these perks to save money. END
 TITLE: How Experian CreditMatch™ Can Help You Save Money CONTENT: Sign Up for Free\n----------------\nWhile there are many comparison shopping tools available, Experian CreditMatch offers unique features that set it apart from the competition.\nIn addition to free credit monitoring and score tracking, Experian matches you to credit card and loan offers based on your credit profile to determine the offers you are most likely to qualify for.\nWe also continue to search for ways to save you money and can help you understand your credit card perks so you won't accidentally miss out on any benefits. END
 TITLE: Experian Mobile App: Instant Access to All Your Credit Needs CONTENT: How the Experian Mobile App Can Help You With Your Credit\n---------------------------------------------------------\nIf you have an iOS or [Android](;hl=en_US) device, you can download the Experian mobile app and take advantage of its suite of free features. The app has 4.8 out of 5 stars in the iOS App Store and 4.7 out of 5 stars in the Google Play Store. Many of the positive reviews mention experiencing success with the Experian Boost™† feature, the ease of credit monitoring and progress made improving their credit score using knowledge gained from the app.\nHere's what you can do with the app and how it can help you build a solid foundation with your credit history and personal finances. END
 TITLE: Experian Mobile App: Instant Access to All Your Credit Needs CONTENT: Premium Services Offer Even More Perks\n--------------------------------------\nFor most people, the Experian mobile app's free services are enough to manage credit effectively. But if you want to take it a step further, you can opt for upgraded services like CreditLock and IdentityWorks Premium.\nCreditLock allows you to use the mobile app to lock your Experian credit file, which can protect you from identity theft. And if you do fall victim to identity theft, IdentityWorks Premium provides insurance coverage to protect your finances, along with providing other identity theft and monitoring services.\nYou may also choose to upgrade to also view your FICO® Score based on the reports from Equifax and TransUnion. END
 TITLE: Experian Mobile App: Instant Access to All Your Credit Needs CONTENT: Is the Experian Mobile App Right for You?\n-----------------------------------------\nThe Experian mobile app may be right for you if you are interested in building or maintaining your credit, saving money, or protecting yourself from fraud and identity theft. Or maybe you're just curious to see what's in your credit report and how your credit score is doing. The Experian mobile app provides a suite of credit monitoring tools and services, most of which are free of charge. You can get all the information you need to stay on top of your finances and credit history without paying a dime, and you can do it anytime and anywhere from your mobile device. END
 TITLE: Can You Take Out a Loan for a Wedding? CONTENT: Is Paying for a Wedding With a Personal Loan a Good Idea?\n---------------------------------------------------------\nThe average cost of a U.S. wedding is $29,858—making it hard for many to gather the cash they need to fund their special day. Here's a look at the pros and cons of taking out a loan to pay for your wedding.\n### Pros\n*   **Lower interest rates than credit cards:** Most personal loans charge lower interest rates than credit cards, making them a more affordable financing solution for your wedding.\n*   **The chance to build your credit:** If you are confident you can pay your loan back according to its terms, you can use it as an opportunity to build your credit.\n*   **Fast funding:** Depending on the lender, you may get the cash you need in as little as one business day.\n*   **Online application process:** Many lenders offer a quick, convenient online application process.\n### Cons\n*   **The temptation to overspend:** Using a loan to pay for your wedding may tempt you to spend more than you can afford.\n*   **Fees:** Some loans come with prepayment fees, origination fees or both.\n*   **Starting your marriage with debt:** If you take out a loan to pay for your wedding, you and your spouse will start your marriage off in debt. This can be particularly problematic if you already have other debt to tackle.\nIf you don't have the cash to pay for your entire wedding but don't want to take out a loan, you do have other options. You can prolong your engagement and have your wedding when you've saved up enough money. Or you can opt for a smaller wedding, choose a less expensive venue, or cut out extras like wedding favors and flowers. END
 TITLE: Can You Take Out a Loan for a Wedding? CONTENT: How Do I Get a Loan for My Wedding?\n-----------------------------------\nThe process of getting a loan for your wedding is fairly simple. Follow these steps.\n### 1\\. Check Your Credit Reports and Scores\nBefore applying for a wedding loan, it's a good idea to check your credit reports and scores. By doing so, you can understand what lenders will be looking at when considering your application. If you have a credit score of 700 or above, you'll be more likely to land lower interest rates and good terms.\nHowever, if your credit score is lower, you may have a more difficult time securing a loan with low interest rates and favorable terms. You may want to spend some time improving your credit before shopping around for a wedding loan.\n### 2\\. Search for Lenders\nThere are many online and in-person lenders that offer loans you can use for your wedding. Take the time to search for various lenders that meet your needs. Check each lender's range for loan amounts.\nIf you need to borrow $30,000 for your wedding and a lender's maximum loan size is $25,000, they aren't a good fit. Also, if a lender only lends money to borrowers with excellent credit scores and your score is in the 500s, there's no reason to consider them. Make a list of a few lenders that meet your needs.\n### 3\\. Get Prequalified\nPrequalifying for a loan gives you the chance to see what kind of offers are available to you. Fortunately, many online lenders perform a soft credit check during the prequalification process so you don't have to worry about hurting your credit score. Although the prequalification process varies from lender to lender, most lenders will ask you to provide the following information:\n*   Full name\n*   Address\n*   Social Security number\n*   Date of birth\n*   Income\n*   Employment details\n### 4\\. Compare Offers and Make a Decision\nOnce you've received all of your prequalified offers, compare them by looking at the interest rate, terms and fees of each one. Calculate the total amount you'll pay for your wedding with each of these offers and select the most affordable option. END
 TITLE: Can You Take Out a Loan for a Wedding? CONTENT: How Much Can I Borrow for My Wedding?\n-------------------------------------\nThe amount of money you'll be able to borrow for your wedding will largely depend on the lender you select and your credit. Here are some lenders to consider:\n*   **LendingClub**: With LendingClub, you can receive your money in as few as three days and you don't have to worry about prepayment fees.\n*   **FreedomPlus**: FreedomPlus offers interest rate discounts and loan terms of two to five years, and promises no hidden fees or prepayment penalties.\n*   **Earnest**: If you don't have the best credit, Earnest may be a good fit, as this lender considers your full financial profile, not just your FICO® Score☉ , the credit score used most frequently by lenders. Also, Earnest does not charge any fees for origination, prepayment or loan disbursement. END
 TITLE: Can You Take Out a Loan for a Wedding? CONTENT: Planning for the Future\n-----------------------\nTaking out a loan may be a good idea if you don't want to spend the next few years saving money to pay for your wedding and are not interested in cutting expenses. If you decide to use a loan to fund your big day, be sure to design a plan to repay it so that it doesn't follow you throughout your marriage. END
 TITLE: What Type of Mortgage Loan Is Best? CONTENT: Is a Government-Insured Mortgage the Right Choice?\n--------------------------------------------------\nA few types of government-backed loans have more lenient borrowing criteria than conventional loans. The main ones you'll see are FHA, USDA and VA loans.\n### FHA Loans\nFHA loans are backed by the Federal Housing Administration, and their purpose is to help first-time homebuyers who might not be able to qualify for a conventional loan. Borrowing criteria is more lax, with lower credit score and income requirements. The down payment can be as low as 3.5%, but unlike with a conventional mortgage, you may have to pay mortgage insurance for the life of the loan. Interest rates on FHA loans are often a bit higher than that of conventional loans since the borrowing standards are less stringent.\n### USDA Loans\nThe U.S. Department of Agriculture offers mortgage loans to low- and middle-income homebuyers in eligible rural areas. The USDA has a direct lending program only for low-income Americans, with extremely low interest rates and no required down payment. It also offers a guarantee program in which it backs loans granted by local lenders (similar to a VA or FHA loan). These loans allow a zero down payment and offer low rates, but you might have to pay mortgage insurance.\n### VA Loans\nBacked by the U.S. Department of Veteran Affairs, a VA loan is a home loan specifically for former and current military service members and eligible family members. These mortgage loans permit a zero down payment with no private mortgage insurance, and interest rates are typically lower than with conventional loans. To qualify, you must provide proof of stable income that shows you can repay the loan, and you must obtain a Certificate of Eligibility from the VA.\n### What to Consider When Getting a Government-Insured Mortgage\nIf you're unable to qualify for a conventional loan, or your priority is getting a loan with as low a down payment as possible, government-insured loans can be a great option. They're ideal for eligible borrowers with low cash savings.\nGovernment-insured loans are also a good option for homebuyers with bad credit. An FHA loan permits credit scores of 580 and above with a down payment of 3.5%, and it sometimes will allow credit scores as low as 500 with a down payment of 10% or more. While VA loans don't have an official credit score minimum, most lenders require a score of around 620. USDA loans typically require a score of 640 or above, and you can't earn more than a certain amount (based on your location).\nKeep in mind that not all lenders offer government-backed loans. You'll need to research local and online lenders to findes that do offer these loans and compare rates before deciding on one. END
 TITLE: What Type of Mortgage Loan Is Best? CONTENT: When Is a Jumbo Mortgage the Right Option?\n------------------------------------------\nConventional loans are also sometimes referred to as conforming loans, which means they \"conform\" to government limits that are intended to keep the housing market stable. Loans that exceed this amount are called noncoforming loans, or jumbo loans, but what qualifies as a jumbo loan can vary widely depending on location. That's because in hot markets in places like San Francisco, the average house costs a lot more than it does in areas like the Midwest. In most regions, however, a jumbo loan is anything over $484,350.\n### What to Consider Before Getting a Jumbo Mortgage\nBecause a jumbo loan is by definition a large mortgage loan for an expensive home, it is really only for borrowers who have high incomes and can comfortably make the large loan payments.\nBorrowing criteria for jumbo mortgages is usually stricter than for conventional loans. You typically need a FICO® Score☉ of at least 700, and most lenders want to see six to 12 months' worth of payments saved in your bank accounts. Jumbo loan borrowers often need to put down as much as 15% to 30% to secure the loan. END
 TITLE: What Type of Mortgage Loan Is Best? CONTENT: Should I Get a Fixed-Rate Loan or Adjustable-Rate Mortgage?\n-----------------------------------------------------------\nMortgage interest rates come in two flavors: fixed-rate and adjustable-rate. Fixed-rate mortgages have one interest rate and payment amount for the entire life of the loan.\nAdjustable-rate mortgages (ARMs), on the other hand, have an introductory period in which the interest rate remains the same and is often lower than a fixed-rate annual percentage rate (APR). But after a predetermined time period, it becomes variable. For example, with a 5\/1 ARM, the interest rate would be fixed for the first five years, then adjust each year after. The rate adjusts according to market conditions, so it could go up or down. There are caps on how high it can go, but it can make your monthly payment unpredictable.\nHere's an easy way to figure out which type of interest rate is best for you. If you're going to stay in your home long term, a fixed-rate mortgage is usually better since it provides predictability for decades. However, if you plan to stay in the home for only a few years, an ARM could save you money if you move out before the adjustment period hits, since the initial rate is usually lower than a typical fixed-rate mortgage. END
 TITLE: What Type of Mortgage Loan Is Best? CONTENT: Should I Choose a 30-Year or 15-Year Mortgage?\n----------------------------------------------\nMortgages typically provide you with several different term options, but the two most common you'll encounter are 30 years and 15 years. There are a few important things to know when choosing your term.\nFirst, the shorter your term, the higher your monthly payment will be because you have less time to pay off the loan. One big plus, though, is it also means you'll pay less interest over the life of the loan since you're knocking out the debt faster—sometimes tens of thousands of dollars less. Also, interest rates are lower on shorter-term loans.\nWhen deciding on your mortgage term, think about how much you can afford to pay each month. If you have a high, stable income and plentiful savings, you might feel confident going with a 15-year term. But if your income is lower or inconsistent, or you just want the lowest mortgage payment possible, a 30-year term might be best. Keep in mind that you can usually make extra mortgage payments or pay extra in principal on each payment, so you could err on the side of caution and get a longer term, but overpay when you're able. That will help you pay off the loan faster and spend less on interest payments over the life of the mortgage. END
 TITLE: What Type of Mortgage Loan Is Best? CONTENT: Check Your Credit Score\n-----------------------\nAs you start exploring your mortgage loan options, knowing your credit score can help you quickly figure out which loans make the most sense for you. You can check your Experian credit score for free to get the process started. END
 TITLE: How Buy Here, Pay Here Dealer Financing Works CONTENT: What Is a Buy Here, Pay Here Dealership?\n----------------------------------------\nWhen you sign a contract to buy a car with a traditional car dealership, it passes the contract on to an auto lender, which provides a loan for the purchase. With a buy here, pay here (BHPH) dealership, however, the dealer sells and finances the cars on its lot.\nBHPH dealerships specialize in working with people who have bad credit or no credit history at all. As a result, they can provide an opportunity that some borrowers will have a hard time finding anywhere else.\nBefore you consider a BHPH dealer, though, it's important to consider both the benefits and drawbacks of doing so.\n##### Pros\n*   **Credit-challenged borrowers can get approved**: If your credit is in bad shape or you haven't had the chance to build a credit history, you may think financing a car through a dealership is out of the question. With a BHPH dealership, however, approval standards are lower than what you'll find with traditional lenders.\n*   **The process is simple**: When you buy a car from a BHPH dealer, you're done with the entire buying and financing process when you drive off the lot. With traditional dealerships, it can still take a while to complete the loan process, especially if you have bad credit.\n##### Cons\n*   **Costs are high**: Because BHPH dealers work exclusively with people with bad or no credit, they tend to charge higher rates than traditional auto lenders that have a mix of borrowers with good and bad credit. Depending on the dealer, you can expect to pay an interest rate as high as the maximum rate allowed by law in your state. Some dealerships also add a slew of hidden fees to the contract, driving up your total costs.\n*   **Selection is limited**: Instead of picking a car and then talking about financing, BHPH dealerships first determine your eligibility, then show you which cars you qualify for. This means you might have fewer options than you would with a traditional dealer.\n*   **Expect to make a large down payment**: Working with bad-credit borrowers carries a certain amount of risk. To help mitigate that risk, BHPH dealers typically require a larger down payment than a traditional dealership might expect. If you don't have much cash on hand, it will limit your choice of cars.\n*   **There's a high chance of repossession**: Both BHPH dealerships and traditional auto lenders can repossess your car if you stop making payments. But with a BHPH dealership, you may get less leeway if you're struggling to keep up on payments. END
 TITLE: How Buy Here, Pay Here Dealer Financing Works CONTENT: How Do Buy Here, Pay Here Dealerships Affect My Credit Score?\n-------------------------------------------------------------\nMost legitimate auto lenders report your payment activity to all three credit reporting agencies (Experian, TransUnion, and Equifax), which can help improve your credit score if you're making regular on-time payments. But that's not always the case with BHPH dealerships, especially if it's a small outfit for which the costs of reporting would be too high.\nThat said, applying for a loan with a BHPH dealer likely won't impact your credit score negatively either. Many such dealers don't run a credit check when you apply for a loan, so you won't see a hard inquiry on your credit report. These inquiries typically knock less than five points off your credit score.\nAlso, if the dealership does end up repossessing your car, that likely won't show up on your credit report either, which can prevent future problems. END
 TITLE: How Buy Here, Pay Here Dealer Financing Works CONTENT: Check Your Credit Score Before Going to a Buy Here, Pay Here Car Lot\n--------------------------------------------------------------------\nBefore you consider going through a BHPH dealership, make sure you know what other options are available.\nFirst, check your credit scores to see where you stand. Depending on where your score is on the spectrum, you may still qualify to work with a traditional car dealership that works with bad-credit borrowers.\nSecond, get a copy of your credit reports to see if there's anything you can work on before you apply. If one of your reports shows erroneous information, for instance, you can file a dispute with the credit reporting agency to get it removed. END
 TITLE: How Buy Here, Pay Here Dealer Financing Works CONTENT: Alternatives to Buy Here, Pay Here Financing\n--------------------------------------------\nAfter you've checked on your credit, there are a few different options you can choose without resorting to working with a BHPH dealership.\n### Wait and Improve Your Credit Scores\nIf you don't need a new car right away, take some time to work on building your credit before you start shopping around. Some tips include:\n*   Directly address the issues hurting your credit score.\n*   Get a credit card or use an existing credit card and make payments on time every month. Also, consider paying your balance in full every month to avoid interest, or at least keep your balance relatively low to maintain a good credit utilization rate, or the amount of credit you're using divided by the total amount of credit you have available.\n*   Ask a family member with great credit to add you as an authorized user on their credit card account.\n*   Avoid applying for new credit too frequently.\nOnce you've improved your credit, you may have a better chance of financing a car through a traditional dealership.\n### Get a Co-Signer\nMost traditional auto lenders allow you to apply for an auto loan with a co-signer to improve your chances of getting approved. A co-signer acts as a backup in case you can't make your payments, reducing the lender's risk.\nKeep in mind, though, that your co-signer will be equally responsible for paying off the loan, and the loan will show up on both of your credit reports. So make every effort to stay on top of the loan and avoid breaking your loved one's trust.\n### Consider Borrowing From a Local Credit Union\nCredit unions typically offer lower fees and loan rates and may be more open to lending to people with bad credit. If you're already a member of a credit union, ask about your eligibility.\n### Second-Chance Auto Loans\nSecond-chance auto loans are loans specifically designed to help people with bad credit get the financing they need. Instead of focusing on your credit, second-chance auto lenders typically look at your income and expenses, residency, employment stability, and other factors to determine your eligibility.\n### Online Auto Lenders\nBecause online lenders have lower overhead costs than traditional lenders, they can pass some of those savings on to their customers and accept borrowers with higher risk profiles.\nWhat's more, you can often get prequalified and see what you're eligible for without submitting an official application. END
 TITLE: How Buy Here, Pay Here Dealer Financing Works CONTENT: The Bottom Line\n---------------\nGetting approved for an auto loan with bad credit or no credit history at all isn't easy, but it is doable. Buy here, pay here dealerships offer financing to people with less-than-stellar credit, but the drawbacks tend to outweigh the benefits.\nInstead, check your credit score and report, and take a step back to consider other options that can help you achieve your goal and cost you less in the long run. END
 TITLE: Are Title Loans Worth the Cost? CONTENT: What Is a Title Loan?\n---------------------\nSimilar to a payday loan, a title loan is a short-term loan with few or no credit requirements. Many title lenders don't even check your credit at all.\nUnlike an unsecured payday loan, however, title loans are secured by your car or motorcycle title. Depending on the lender, where you live and the value of your vehicle, you may be able to borrow as little as $100 or as much as $10,000 or more.\nThe lender typically holds on to your car's title until the loan is paid in full. Despite having collateral to secure the loan amount, title loans are significantly more expensive than most alternatives.\nIn fact, most states don't even allow title loans. The states that do permit title lenders to operate include Alabama, Arizona, California, Delaware, Florida, Georgia, Idaho, Illinois, Louisiana, Mississippi, Missouri, Nevada, New Hampshire, New Mexico, Oklahoma, Ohio, South Carolina, Tennessee, Texas, Utah, Virginia, and Wisconsin. END
 TITLE: Are Title Loans Worth the Cost? CONTENT: How Do Title Loans Work?\n------------------------\nYou can typically start the application process for a title loan online or at a title lender's store. Loan amounts typically range from 25% to 50% of the car's value, and you need to have the title in your hands, owning your vehicle free and clear. This means it can't be currently financed through another lender.\nTo complete the application process and get approved, you'll need to bring in your car or motorcycle, a clear title, a photo ID and proof of insurance. You may also need to bring an extra set of keys.\nWhile some states require title lenders to run a credit check, most don't. What's more, title lenders don't even need to check your income in many states to make sure you can repay the loan. Once you sign the contract and agree to pay the loan fees and interest, you'll get your money, and the lender will keep the title until you pay off the debt.\nThat doesn't mean you have to turn over your car—you can continue to drive it as usual during the repayment process, which typically lasts 15 or 30 days, or longer with some lenders. You can typically make your loan payments in person, through the lender's website or through an authorized automatic withdrawal from your bank account.\nIf you don't pay back the loan on time, the lender can repossess your car or motorcycle and sell it to get its money back. In some states, if a title lender repossesses your vehicle and sells it, it must pay you the difference between the sale price and the loan amount. Some states, however, allow the lender to keep all the proceeds from the sale. END
 TITLE: Are Title Loans Worth the Cost? CONTENT: How Much Does a Title Loan Cost?\n--------------------------------\nTitle loans are an easy way to get cash fast. But they can also intensify your financial hardship if you're not careful.\nTitle loans often charge an interest rate of 25% per month. While that doesn't sound high compared with some personal loans for bad credit, it comes out to an annual percentage rate (APR) of 300%.\nAs an example, let's say you borrow $500 with the following loan costs:\n*   10% interest rate\n*   $150 finance charge\n*   $33 title certification fee\nIf you pay off the loan over 30 days, your total cost will be $687.11, which comes out to an APR of 455.3%!\nIf your financial situation is already tight, adding fees and interest into the mix can make things more difficult. If you want to avoid repossession of your car but know you aren't going to be able to pay back the loan on schedule, you can opt to roll over the loan into a new title loan. This, however, only adds to the fees and interest already charged, and can trap you in a vicious debt cycle. END
 TITLE: Are Title Loans Worth the Cost? CONTENT: Does a Title Loan Affect My Credit Scores?\n------------------------------------------\nIn most cases, a title loan won't have any impact on your credit scores. That can be good and bad. For starters, most title lenders don't run a credit check when you apply. That check, known as a hard inquiry, typically knocks five points or less off your credit score.\nOn the flip side, title lenders don't report your payments to the credit bureaus, which means a title loan won't help your credit scores either. If you're applying for a title loan, you've probably had a difficult time getting credit from more traditional sources. In that case, you want any credit or loans you do get to count toward your credit so you can begin improving your credit scores and eventually qualify for more traditional (and less expensive) credit.\nIf you default on your title loan, the lender is required to comply with the Fair Debt Collection Practices Act. Even so, it will usually repossess the vehicle and sell it, so there's no need to sell the debt to a collection agency or report the delinquency. END
 TITLE: Are Title Loans Worth the Cost? CONTENT: Title Loan Regulations for Military Members\n-------------------------------------------\nThe Military Lending Act offers special protection to military service members and their dependents. On title loans with terms of 181 days or less, the maximum APR a lender can charge these borrowers is 36%. Additionally, title lenders:\n*   Can't require the use of a check or access to a bank account\n*   Can't stipulate mandatory arbitration\n*   Can't require unreasonable legal notices\n*   Must provide certain disclosures about the loan costs and the borrower's rights\nIf a title loan agreement violates any of these rules with regard to military service members, it's automatically void. While these extra protections sound great, the cost of a title loan remains onerous—especially if you have to roll over the loan—and should make even these borrowers think twice. END
 TITLE: Are Title Loans Worth the Cost? CONTENT: Alternatives to Title Loans\n---------------------------\nTitle loans may seem like an easy way to get the money you need. But with cheaper alternatives available, there's generally no good reason to go this route. Here are just a few other options to consider:\n### Personal Loans\nMany personal loan lenders specialize in working with people who have bad credit. So whether you're looking to finance a large purchase, cover some immediate expenses or consolidate debt, you may still qualify despite having a spotty credit history.\n### Credit Cards\nMost bad-credit credit cards require a security deposit, but not all of them do. Cards like the Indigo® Platinum Mastercard® are designed to help people with bad or no credit build their credit histories without collateral.\nAlso, many retail store credit cards will approve you if you have bad credit, although often their credit limits are low and APRs are high, and some can only be used at the retailer.\n### Credit Card Cash Advance\nIf you already have a credit card and need cash, you may be able to use your card to get a cash advance from an ATM, up to a certain limit.\nWhile cash advances are costly—you'll typically pay an upfront fee and a higher interest rate, and you won't get a grace period—they're much less expensive than a title loan if paid off promptly.\n### Family or Friends\nIf you have a good relationship with a loved one, you could get the assistance you need without dealing with high fees and interest rates.\nAsking for cash from a family member or friend may be an uncomfortable conversation, but as long as you draw up an official contract and pay the money back on time, you won't risk ruining your relationship.\n### Military Assistance\nIf you're a service member or a dependent of one, you may qualify for assistance from a military aid society. Examples include:\n*   Army Emergency Relief\n*   Navy and Marine Corps Relief Society\n*   Air Force Aid Society\n*   Coast Guard Mutual Aid END
 TITLE: Are Title Loans Worth the Cost? CONTENT: How to Build Credit\n-------------------\nIf you're considering an auto title loan, it's likely because your credit is in bad shape. While working to build your credit may not get you the cash you need now, it can help you gain better options in the future. Here are some of the best ways to do it:\n### Use a Credit Card\nIf you don't have a credit card already, getting one can help you build credit without paying any interest—if you use the card responsibly, keep your balance relatively low, and pay off your balance on time and in full each month.\n### Pay Other Loans on Time\nIf you've gotten behind on some payments, get current as quickly as possible. Then make it a priority to make all your monthly payments on time going forward. Your payment history is the most important factor in your FICO® Score☉ , so this action is crucial.\n### Get Added as an Authorized User\nIf a loved one has excellent credit and a credit card, ask if they would consider adding you as an authorized user on the account.\nOnce you've been added, the card issuer should report the account's full history on your credit report (check to make sure they're doing so). If the account is in good standing, it can go a long way to boost your credit score.\n### Address Potential Credit Report Errors\nSometimes mistakes happen, and erroneous information can show up on your credit report. If this happens, it could negatively impact your credit scores. You can get a free copy of your credit report from each of the credit reporting agencies each year at AnnualCreditReport.com. Experian also offers its own free credit report.\nOnce you have your reports, look over them to see if there's anything you don't recognize. If there is, you can dispute it with the credit reporting agency and the creditor.\nMonitoring your credit scores regularly and addressing problems as they come up will give you a better chance of getting a less expensive loan in the future. END
 TITLE: How to Get a Checking Account CONTENT: What You Will Need to Open a Checking Account\n---------------------------------------------\nBefore you open your account, make sure you have the necessary documents and information on hand. Here are the main items you'll need:\n*   **Proof of identification.** To open your own checking account, you need to be over 18 and have a current government-issued photo ID such as a driver's license, passport, state ID or military ID. If you're opening a joint account, the other person will also need to provide a form of ID. Prospective customers also need to be legal U.S. residents, providing their Social Security number or Taxpayer Identification Number as proof.\n*   **Proof of your current address.** This could be a lease, mortgage statement or utility bill.\n*   **Cash for the initial deposit.** Banks and credit unions usually require an initial deposit to open a checking account; the minimum amount required varies by bank.\nThough banks and credit unions don't check your credit score when opening an account, they will sometimes run your ChexSystems report. A ChexSystems report is a like a credit report for banks, displaying previous banking problems such as negative balances, frequent overdraft fees, bounced checks and fraud. It's rare to be denied a checking account, but most rejections happen because of poor marks on your ChexSystems report.\nBefore opening a checking account, research which bank and what type of account is best for you. Some banks charge monthly maintenance fees if you don't reach their minimum balance or have regular direct deposits, often up to $15. Others have a small ATM network and charge fees when you use an out-of-network ATM. Some checking accounts offer interest, while others don't.\nIf you need to go to a branch to make deposits on a regular basis, choose a bank with locations near you or that allow free cash deposits at ATMs. Some people prefer a large national bank, especially if they move frequently, travel a lot or hope to use their bank for a variety of financial products. Others want a local credit union because of their low fees and personalized customer service.\nAsk your employer if they have ties to any bank or credit union. If you work for the government, you may be eligible for a special credit union that has lower fees and higher interest rates. END
 TITLE: How to Get a Checking Account CONTENT: You can open a checking account by filling out an application online or in person, usually in just a few minutes, as long as you have the necessary items noted above. The bank will then issue you a debit card, typically arriving in the mail seven to 10 business days later. A debit card allows you to pay for items using the funds from your account.\nIf you order checkbooks, those will also come after the account opens. If you need checks before they arrive in the mail, you can typically get temporary checks from your bank. Checkbooks are often free the first time but may carry an extra fee when you order more.\nOnce the account is created, you can set up recurring direct deposits from your employer to your checking account. Many banks also allow you to deposit checks via their mobile app, though you can also go to an ATM or branch location. END
 TITLE: How to Get a Checking Account CONTENT: Benefits of Having a Checking Account\n-------------------------------------\nChecking accounts are the first step in financial independence for many people. Students often open their first checking account in high school or college, while others open checking accounts as a way to pay for expenses without relying on carrying cash. Here are some benefits of having a checking account:\n*   They offer several ways to help you pay for goods and services, through the use of checks, debit cards and electronic payments.\n*   They allow you to have your paycheck deposited directly into your account.\n*   They are insured up to a certain amount, keeping your money safe.\n*   They allow you to pay your bills online, making bill paying more convenient.\nWhen you keep money in a checking account, you can pay your bills or send money to a friend without using cash. Debit cards and checks provide easy payment methods, while online systems such as Zelle, PayPal, and Venmo put payments and transfers just a click away on your phone or computer.\nChecking accounts are usually FDIC-insured, making them a safe place to keep your money. The FDIC (Federal Deposit Insurance Corporation) is a federal insurance agency that guarantees funds held in most banks and credit unions, up to $250,000 per account. END
 TITLE: How to Get a Checking Account CONTENT: Does Closing a Checking Account Affect Your Credit Score?\n---------------------------------------------------------\nPeople close checking accounts for a variety of reasons. They may find a better deal at another bank, or they may be moving to an area where their current bank doesn't exist.\nA closed checking account won't appear on your credit report because a checking account isn't a form of credit. The details of your checking account, like how much money you have or how often you make deposits and withdrawals, also don't appear on your credit report and can't be seen by a creditor unless you grant them access.\nIf you close a checking account with a negative balance, you might incur a red mark on your ChexSystems report. This could damage your ability to open another checking account in the future.\nBefore closing a checking account, verify that you don't have any recurring bills connected to the account or any checks that have yet to be deposited. A service provider will probably charge a hefty fee for a returned check. END
 TITLE: How to Get a Checking Account CONTENT: Beyond Checking Accounts\n------------------------\nOnce you've built a comfortable relationship with your bank through using your checking account, you can look into other products the bank offers, such as savings and money market accounts or certificates of deposit (CDs). These offer higher interest rates than checking accounts (some of which don't offer interest at all) and are better for long-term savings rather than everyday use. If you have a large balance in your checking account, consider opening one of these accounts, either through your bank or another financial provider, to get more bang for your buck.\nAs you continue to build a strong financial foundation, consider obtaining a copy of your free credit report to see where your credit stands and to help you better understand how to improve your financial future. END
 TITLE: What Is Second Chance Banking? CONTENT: When you apply to open a checking account, banks and credit unions typically check your ChexSystems report. Like a credit report, your ChexSystems report shows negative bank account actions and activities, such as an involuntary account closure and unpaid negative balances.\nIf the bank or credit union deems you're too much of a risk based on information in your report, it can deny your application.\nSecond-chance bank accounts give you an opportunity to rebuild your banking history and get back in the good graces of other banks and credit unions. They typically don't require a high minimum balance, if any, and some don't even charge fees. END
 TITLE: What Is Second Chance Banking? CONTENT: How Does a Second-Chance Checking Account Work?\n-----------------------------------------------\nA second-chance checking account is an account where the bank or credit union either doesn't check your ChexSystems report or is willing to look past your previous missteps.\nAs you use the account, it can help you build a positive history with ChexSystems as you wait for previous negative records to fall off your report, which can take up to five years.\nNot all major banks and credit unions offer second-chance checking accounts, but many of them do. Some nationwide examples include:\n*   TD Ameritrade\n*   Green Dot\n*   Wells Fargo\n*   Capital One 360\n*   BBVA Compass\n*   MemoryBank\n*   Radius Bank\nYou can also get a second-chance checking account with a regional bank, local credit union or an online bank. Chime, in particular, charges no monthly maintenance fees and offers overdraft protection and direct deposit.\nThat said, many second-chance checking accounts do charge monthly fees, and you don't always have an option to get them waived. Also, you may not get access to all the same services you would with a traditional bank account, such as overdraft protection or access to checks or direct deposit.\nAs a result, it's important to shop around to find a bank or credit union that will give you the most features at the lowest cost. END
 TITLE: What Is Second Chance Banking? CONTENT: What You Can Do After Being Denied for a Checking Account\n---------------------------------------------------------\nIf you've misused a bank account in the past or have been a victim of an error or fraud, you may have a hard time opening another account. Some potential misdeeds include bouncing checks, leaving an overdraft balance unpaid, abusing a debit card or ATM, or applying for too many accounts in a short period.\nIf you are denied for any of these reasons, the bank or credit union is required to tell you why. Once you have this information, the first step is to get a copy of your ChexSystems report. By law, you can get a free copy of your report at least once every 12 months, plus anytime you've been denied a checking account for reasons listed on your report.\nYou can get a copy of your report by:\n*   Requesting one through the ChexSystems website\n*   Calling (800) 428-9623\n*   Downloading and mailing a request form to Chex Systems Inc., Attn: Consumer Relations, 7805 Hudson Road, Suite 100, Woodbury, MN 55125\n*   Downloading and faxing a request form to (602) 659-2197\nWhen ChexSystems receives your request, you'll get a copy of your report in the mail within five business days.\nOnce you have it, look through the report to spot potential errors or fraud. If you find instances of either, you can dispute them directly with ChexSystems. Then focus on addressing other potential problems.\nFor example, if you were denied an account for not paying back an overdraft balance, pay it off as quickly as possible, either in full or at a discount if you can negotiate it. After you've done this, you can request that the collection agency or bank remove the negative item from your report.\nKeep in mind, though, there are some things you can't remove from a ChexSystems report. If that's the case with yours, the negative item will typically fall off the report naturally after five years. END
 TITLE: What Is Second Chance Banking? CONTENT: Bottom Line\n-----------\nSecond-chance banking isn't always ideal, but it's a solid option if you've been denied a traditional checking account.\nWhile prepaid debit cards are another alternative, your activity won't be reported to ChexSystems, and it won't necessarily give you a better chance of getting approved for a traditional checking account the next time you apply.\nAs you work to get back on the right track with your banking, also consider getting a free copy of your credit report.\nWhile your credit history doesn't have a lot of influence on whether you can get a better bank account in the future, building your credit can help you improve your overall financial standing. Doing so can prevent some of the issues that may have caused your current predicament from happening again. END
 TITLE: What Does It Mean to Clean Up Your Credit? CONTENT: What Does Cleaning Up Your Credit Report Mean?\n----------------------------------------------\nWhen you clean up your credit, you get it in the strongest shape possible so lenders view you as a trustworthy potential borrower.\nEach credit reporting agency—Experian, TransUnion and Equifax—has its own process you can use to dispute information you believe appears erroneously. This could include personal information or accounts that do not belong to you. END
 TITLE: What Does It Mean to Clean Up Your Credit? CONTENT: How to Clean Up Your Credit Report Yourself\n-------------------------------------------\nTo clean up your credit, start by reviewing your credit reports. You can get yours for free once every 12 months from each of the three credit bureaus at AnnualCreditReport.com. You can also access your free Experian credit report directly on Experian's website.\nLook through all three of your credit reports thoroughly. That means checking to ensure your name is spelled correctly and all your account details are up to date.\nIf you see any information you believe to be in error, you can begin the dispute process. At Experian, here's how:\n1.  Go to the online dispute center. (It's also possible to initiate a dispute by phone or by mail.) Once there, you can click on the \"Start a new dispute online\" button to begin the process. Potentially negative items on your Experian credit report that you may want to take special care to review will be flagged. You can also navigate through to each credit account on your report and initiate disputes from there.\n2.  If you find an item you'd like to dispute, you'll be asked to choose from a drop-down menu of reasons why, then leave a comment with details about your situation. You may also be asked to upload supporting documents.\n3.  Experian will confirm that your dispute has been submitted, and you'll receive alerts about the status of your dispute. When necessary, Experian will contact the source of the disputed information, such as a lender, to review their records. While a few factors can affect how long the dispute process takes, most disputes are completed within 30 days.\n4.  Experian will let you know when your dispute results are available. You can expect one of three outcomes: Your information will be modified, deleted or remain unchanged if it was found to be correct.\nYour credit scores could be affected by your dispute's resolution. If, for instance, an erroneously reported late payment comes off your report, your credit scores could improve. But many factors affect your scores, and depending on the circumstances, you may not see an immediate, meaningful change. END
 TITLE: What Does It Mean to Clean Up Your Credit? CONTENT: The Bottom Line\n---------------\nWhile errors in credit reports are uncommon, one of your first steps in cleaning up your credit should be to verify everything in your credit report is accurate. But there are many other ways you can work to generate good credit.\nTake steps to protect your personal information to reduce the risk of identity theft. Also, since the most important factor affecting your credit scores is payment history, automate your bills so you don't miss them. Nearly as important is your credit utilization, or the amount of debt you have relative to your total credit limit. It should be as close to zero as possible, but experts suggest using no more than 30% of your available credit at any time, and no more than 6% for the best scores.\nOnce you've disputed any errors you come across, put into practice smart credit-building strategies. You'll feel confident knowing you're doing what you can to keep your credit report secure. END
 TITLE: Can Medical Bills Hurt Your Credit? CONTENT: Do Medical Bills Affect Your Credit?\n------------------------------------\nSimply receiving a medical bill doesn't affect your credit score, of course. Neither does paying the bill a few days late. Medical bills affect your credit score only if a collection agency gets involved.\nIf you don't pay your bill and it becomes significantly past due, your health care provider may give up on collecting the debt from you and sell it to a collection agency. The collection agency then takes over the debt and starts contacting you to get payment.\nWhen exactly is a bill past due? Each health care provider's office has its own practices. Typically, providers wait 90 days before turning your medical debt over to collections; however, some providers will wait 180 days, while others will wait just 60 days.\nTo help standardize medical debt reporting and protect consumers' credit reports from being unduly affected by medical debt, the three major credit bureaus (Experian, TransUnion and Equifax) now employ a 180-day waiting period before medical debt appears in your credit history. This six-month grace period is designed to give you enough time to correct any errors on your bill, pay the bill or get your insurance company to pay it, figure out a payment plan or otherwise resolve the problem. By taking action within the 180 days, you can prevent medical bills from hurting your credit score. END
 TITLE: Can Medical Bills Hurt Your Credit? CONTENT: How Long Do Medical Collections Stay on Your Credit Report?\n-----------------------------------------------------------\nUnpaid medical bills can stay on your credit report for seven years from the original delinquency date. Because your payment history is the biggest single factor in your credit score, accounting for about 35% of your score, having a collection account such as unpaid medical debt in your credit history can have a significant negative impact.\nIn recent years, health care costs have risen, making medical debt a serious burden for more and more Americans. In the U.S., the average inpatient hospital stay costs over $22,000, according to a study by the Institute for Health Metrics and Evaluation. The latest FICO credit scoring model, FICO 9, as well as the VantageScore 3.0 and 4.0 credit scoring models, all give less weight to unpaid medical collections than to other collections. FICO® Score☉ 9 also ignores collection accounts if the original unpaid balance was less than $100. In addition, all three major credit scoring agencies will remove medical debt from your credit history once it is paid off by an insurer.\nThe problem is, different banks and lenders may use different credit scoring models. When you apply for a car loan, mortgage or credit card, you won't know exactly which credit scoring model is being used, so you have no idea how heavily medical debt is weighted when determining your creditworthiness.\nClearly, unpaid medical bills can leave your credit score in critical condition. To keep your credit score healthy, you should do everything in your power to prevent a medical bill from ever going to collections in the first place. END
 TITLE: Can Medical Bills Hurt Your Credit? CONTENT: How to Keep Medical Bills off Your Credit Report\n------------------------------------------------\nThe good news is that in most situations, a little vigilance, knowledge and organization are all it takes to keep your medical bills from going to collections. Take these steps when you're planning any doctor visit or medical procedure:\n1.  **Know what to expect.** Get familiar with your health insurance plan so you know exactly what it covers, what it doesn't and what your copay will be for a visit or procedure. Armed with this information, you're less likely to make costly mistakes such as visiting an out-of-network doctor or not asking for a generic version of a prescription drug.\nIf you don't have health insurance or your insurance doesn't cover the visit or procedure, find out ahead of time how much you can expect to be charged. (You probably won't get an exact figure, but you can get a range or estimate.) This is also a good time to find out if the health care provider offers any payment plans or accepts medical credit cards, such as CareCredit.\n3.  **Keep track of your medical bills.** Make it a habit to read any letters, emails or other communications from your health care provider as soon as you receive them. That way, you'll catch mistakes quickly and can contact the provider to iron out any problems right away.\nIf you recently had a procedure or visited a doctor and haven't received a bill, contact the health care provider to make sure they have your correct address and that you didn't miss a bill. Do you receive bills by email? Make sure to add your providers to your email address book so their messages don't get lost in your junk or spam folders.\n5.  **Make sure the charges are accurate.** Medical offices and insurers make mistakes. Simple human errors such as miscoding a medical procedure can result in incorrect charges. Review each medical bill carefully and compare it against your insurance company's benefits to see if you're being charged the correct amount. If not, contact the health care provider's billing office, your health insurance company or both to let them know. After a hospital stay or complex procedure, ask for an itemized bill so you can check specific charges for accuracy.\nWhat if you've done all of the above and still end up with a medical bill you can't pay? Don't panic: There are a few options that can help you keep the bill from going to collections.\n*   **Try to negotiate your medical bills.** The best time to negotiate medical costs is before your treatment or procedure, but you can also try to do so afterwards. Some health care providers charge lower rates for patients who don't have health insurance and are paying out of pocket (known as \"private pay\"). Websites such as Healthcare Bluebook and FairHealth let you research the average cost of specific procedures in your area. You can use the information to choose care providers and as leverage to negotiate lower prices.\n*   **Work out a repayment plan.** What if your health care bill is as low as it's going to get, but it's still more than you can pay? See if you can set up a monthly payment plan with the provider. Many providers would rather work with you than send the bill to collections. Contacting your health care provider's billing office immediately to discuss repayment will show you're acting in good faith (and will give you more time to pay the bill).\n*   **Keep an eye on your credit report.** Are collection agencies calling about a medical debt you've never heard of before? Legitimate medical debts sometimes go to collections without you ever receiving a bill. This might happen if your provider has an incorrect address for you or if your mail is misdelivered. If you have a common name, it's possible you're being charged with someone else's bill. Finally, some collection calls regarding medical debt are scams. Before you panic (or pay anything), ask the collection agency to provide proof of the debt in writing. Under the Fair Debt Collection Practices Act, they must give you this information within five days.\nThe best way to avoid getting blindsided by a collection agency? Get a free credit report on a regular basis and review it carefully. If you find errors or any suspicious activity in your credit history, contact the credit reporting agency right away to set the record straight. END
 TITLE: Can Medical Bills Hurt Your Credit? CONTENT: Prevent Medical Bills From Hurting Your Credit Score\n----------------------------------------------------\nMedical treatment can leave a scar, and when it leads to a big medical bill you can't pay, it can also leave a mark on your credit score. This is one situation where an ounce of prevention is worth a pound of cure. Take a few simple precautions whenever you get medical treatment, and you'll help keep medical debt from dinging your credit score. END
 TITLE: Can Credit Counseling Hurt Your Credit? CONTENT: Does Credit Counseling Appear on Your Credit Report?\n----------------------------------------------------\nCredit counselors offer a variety of services, including everything from providing basic money management advice to setting up a plan to help you pay off debt. If you have a lot of unsecured debt that you're struggling to repay—especially on credit cards—but you aren't ready for more drastic measures like bankruptcy, your credit counselor may recommend setting up a debt management plan.\nWith a debt management plan, you make one monthly payment to the agency for all of your eligible debts, and then it divides up that amount and pays your creditors directly. You'll typically pay a small fee upfront and as well as a monthly fee for the service, and you'll likely have to close the credit cards included in the plan.\nCredit counseling simplifies your repayment process, ideally making it easier to pay off your debt. In some cases, credit counselors can negotiate lowered interest rates, reduced monthly payments and more with your creditors, which could save you money.\nHow will all this play out on your credit report? When you repay a debt through a debt management plan, a creditor may add a comment to the account on your report saying so. Future lenders will be able to see the notation when they run a credit check during the application process, but it won't directly impact your credit score.\nThat said, there are some aspects of the credit counseling process that can influence your credit score for better or for worse. END
 TITLE: Can Credit Counseling Hurt Your Credit? CONTENT: Is Credit Counseling a Good Idea?\n---------------------------------\nCredit counseling has benefits and drawbacks, and it's important to understand your situation to determine whether you need a credit counselor. Here are a few things to consider:\n*   **It only works for certain debts.** If you're struggling to make payments on a mortgage, auto loan or another type of secured loan, you won't be able to include it in a debt management plan. The same goes for student loans. However, if you have credit card or personal loan debt, you can include that.\n*   **Other options may make more sense for you.** If your credit is in great shape and your debt is manageable, it may be better to apply for a balance transfer credit card or consolidation loan with a low interest rate to pay off your other debts. Just know that if you do this and then continue to charge on your credit cards, you'll likely end up in worse shape. A debt management plan is best if you can afford to make a monthly payment and don't want the temptation of open credit accounts. In contrast, if you wouldn't even be able to afford monthly payments under a debt management plan, you may need to consider more serious measures, such as bankruptcy.\n*   **It's not free.** Debt management plans typically have a setup fee of $50 and monthly fees of about $25, and plans typically last three to five years. If you can find a cheaper alternative, it may be worth it. Note, however, that credit counseling agencies may waive their fees if you're experiencing serious financial hardship.\nIf you're still not sure whether a credit counselor is right for you, set up a consultation with one to get their perspective. While debt management plans cost money, the advice counselors give is free. END
 TITLE: Can Credit Counseling Hurt Your Credit? CONTENT: How to Find a Good Credit Counselor\n-----------------------------------\nIf you've decided that credit counseling is right for you or you want to consult with a counselor about your situation, it's important to find a good credit one who has your best interests at heart. In general, steer clear of for-profit credit counseling agencies. Nonprofit agencies are more likely to charge lower fees and provide unbiased advice.\nThe first step is to make sure the credit counseling agency is certified. You can find these agencies through any of the following:\n*   The National Foundation for Credit Counseling\n*   The Financial Counseling Association of America\n*   The U.S. Trustee Program\n*   Your state's attorney general's office\n*   Your local consumer protection agency\nOnce you find a credit counselor, set up a meeting to talk about your situation and ask for advice. A good credit counselor will analyze your full financial picture before making any recommendations. If they recommend a debt management plan without this step, it may be a red flag.\nBecause debt management plans can last as long as five years, it's important to take your time with this part of the process to make sure you find the right fit. Once you find a counselor you feel comfortable with, you can proceed with the next steps. END
 TITLE: Can Credit Counseling Hurt Your Credit? CONTENT: Check Your Credit Score During the Credit Counseling Process\n------------------------------------------------------------\nBecause credit counseling can have an impact on your credit, it's important to check your score regularly to understand how certain actions impact it and determine what you can do to improve it.\nAlso, consider checking your credit report before and during the credit counseling process. This can help you pinpoint areas you need to address, and can also help you identify potentially incorrect or fraudulent information on your reports. If you find something, you can dispute it with the credit reporting agencies to have it corrected or removed. Depending on the situation, this could help your credit score. END
 TITLE: How Long Do Collections Stay on Your Credit Report? CONTENT: When Are Collection Accounts Removed?\n-------------------------------------\nA collection account will be automatically removed from your credit report seven years after the original account went delinquent.\nThe original delinquency date is when your account first became 30 days past due, kicking off the series of missed payments that ended with your account going to collections. That date doesn't change once your account is closed and sent to collections.\nMaking a payment doesn't reset the timeline for when the account will be deleted from your credit report—although it may reset the statute of limitations on the debt, meaning how long the debt can legally be collected. A collection agency buying your account from another collection agency doesn't reset the timeline either, although you may see a new account open date when the collection agency takes over your account. END
 TITLE: How Long Do Collections Stay on Your Credit Report? CONTENT: Can You Remove Collections Accounts From Your Credit Report?\n------------------------------------------------------------\nYou can't get a correctly reported collection account removed from your credit report early.\nEven if you pay off the debt, the collection account will stay on your credit report for up to seven years. The timeline depends on when your debt first went delinquent, not whether you still owe the money.\nHowever, if you notice an error with the collection account, you can file a dispute with each of the credit bureaus to have the account corrected or removed from your credit reports.\nFor example, if the collection agency doesn't send an update to the credit bureaus once you've paid off or settled the account, you may want to file a dispute.\nIf a collection account is removed from your credit reports early, the original account and late payments that led to the collection activity can remain. Those can continue to impact your credit, and the late payments will remain on your report for seven years from the date of first delinquency. END
 TITLE: How Long Do Collections Stay on Your Credit Report? CONTENT: How Do Collections Affect Your Credit Scores?\n---------------------------------------------\nA collection account is a negative item that can hurt your credit scores. But the impact on your score can depend on the type of credit score and whether you've paid off the collection.\nFor example, the latest FICO® Score☉ and VantageScore® models ignore paid collection accounts, while previous score versions may count paid collections against you.\nBut when you're applying for a loan with a lender that uses older scoring models—such as a mortgage lender—paying down your collections could still be important. Credit scores aside, the lender may review your credit history, and having unpaid collections could make it more difficult to qualify. While even paid collection accounts are negative, they may be viewed more positively by lenders than an account that remains unpaid. END
 TITLE: How Long Do Collections Stay on Your Credit Report? CONTENT: Improving Your Credit When You Have Accounts in Collections\n-----------------------------------------------------------\nIn addition to paying off collection accounts, you can take a variety of actions to improve your credit scores while there are collections in your credit history.\nFor example, if you have open credit cards or loans, make all payments on time going forward. Payment history has the biggest effect on your credit scores, so making at least your minimum payments on time every month will help. If you don't have any open accounts, you may want to take out a secured card or credit-builder loan to start building a positive credit history.\nYou can also work to lower your utilization rate—an important scoring factor—by paying down credit card balances or consolidating credit card debt with a personal loan.\nHaving a long history of on-time payments and low debt relative to your available credit limits can help improve your credit over time. END
 TITLE: How Long Do Collections Stay on Your Credit Report? CONTENT: Review Your Credit Reports\n--------------------------\nYou can also review and monitor your credit reports to watch your progress and make sure no unexpected collection accounts show up there. You can get your Experian credit report for free every 30 days, and take advantage of our free credit monitoring service, which can alert you to score changes and suspicious activity. If you find or are notified of something odd, you can use the Experian Dispute Center to submit a dispute online for free. END
 TITLE: What Should I Do When My Account Goes to Collections? CONTENT: Why Do Debts Go to Collections?\n-------------------------------\nTypically, a debt collector—either a person or a company—reaches out to you when you owe a debt that's gone unpaid for some time, generally after you've missed three or more monthly payments. Two possible scenarios are:\n*   A creditor, such as a credit card issuer or a mortgage lender, thinks you're behind on payments. The creditor might use its own debt collectors to do this, or might hire a debt collection agency or law firm to take it on.\n*   A company bought your debt from the creditor and is trying to collect the money you owe.\nA debt collector can contact you by phone, email, mail or text message when it's trying to collect payment for your overdue bills.\nWhen a debt collector initially contacts you by phone, ask that the details about your debt be put in writing. Hang on to any written correspondence you receive from a debt collector. Within five days of its initial contact with you, a debt collector must tell you in writing the amount of the debt and the name of the creditor, and must inform you about how to dispute the debt. END
 TITLE: What Should I Do When My Account Goes to Collections? CONTENT: What Happens if You Don't Pay a Debt Collector?\n-----------------------------------------------\nIn some cases, a debt collector might take you to court and request that a judge order you to pay the debt. You can represent yourself in court or hire an attorney.\nAs part of the legal case, the debt collector must show that the debt is valid and that you're the one who owes it. Based on that and other evidence, a judge will rule whether you do or do not owe the debt.\nWhile it's scary to go to court, it's not wise to ignore the lawsuit. In fact, ignoring a suit against you often worsens your situation. Typically, a judge will rule against you if you don't respond to the legal action. That could let a debt collector:\n*   Garnish (take) your wages\n*   Freeze or garnish money in your bank accounts\n*   Put a lien on any property you own\nTo stay out of legal hot water, face the consequences rather than hoping the lawsuit will simply go away.\nOn a positive note, a debt collector might not be able to take you to court over old debts. Why? Debt collectors have a certain window of time to sue you. In most states, that window is three to six years. END
 TITLE: What Should I Do When My Account Goes to Collections? CONTENT: How Do Collections Affect Your Credit?\n--------------------------------------\nOnce your overdue debt is handed over to an internal or external debt collector, this action probably will pop up on your credit reports. A collection account on your credit can lead to a significant drop in your credit scores. It'll take seven years for accounts that have gone to collections to fall off your credit reports. END
 TITLE: What Should I Do When My Account Goes to Collections? CONTENT: How to Get Through the Collections Process\n------------------------------------------\nWhen one of your debts winds up with a debt collector, you might feel helpless. There are plenty of reasons to be hopeful, though. The way you react to this can empower you to come through this with your head held high:\n1.  Act swiftly. Once you learn that a debt collector is pursuing your debt, the clock starts ticking. Time is on your side, but you must acknowledge the circumstances and respond quickly. Don't neglect your debt. Instead, be proactive so you can head off trouble.\n2.  Educate yourself. Arming yourself with information can give you an edge in finding debt solutions. Be sure you're clear about who you owe, how much you owe and what your legal rights are.\n3.  Seek help. It might be overwhelming to cope with this on your own. If so, consider hiring an attorney or contacting a nonprofit credit counseling service. An expert can provide guidance on how to resolve the debt and get your credit in better shape.\n4.  Stay on track. After you've paid off the debt that went to collections, commit to making monthly debt payments on time, sticking to your budget and maintaining a manageable amount of debt. Your credit scores eventually will reflect your hard work. END
 TITLE: What Is a Collection Agency? CONTENT: How Does a Collection Agency Work?\n----------------------------------\nCollection agencies may be brought in when a company has failed in its efforts to collect an outstanding debt. If a creditor has sent your debt to collections, they expect to receive only a portion of any money collected. For them, this is preferable to receiving nothing at all—or continuing the process of trying to collect your debt themselves.\nYou may encounter one of two types of third-party debt collectors:\n*   **Agencies that collect debt on a creditor's behalf**: These agencies pursue payment in exchange for a percentage of the money they collect—typically 25% to 50%.\n*   **Debt buyers that purchase debt from the lender**: A creditor may believe that the likelihood of collecting your debt is so remote that they sell your debt for pennies on the dollar.\nDebt collectors only make money when they collect on your debt. They are single-minded, persistent and highly motivated. If a collection agency contacts you, don't assume you can ignore them and hope they go away. Instead, manage your relationship with them proactively and remember that you have specific rights when dealing with them. END
 TITLE: What Is a Collection Agency? CONTENT: What Are Debt Collectors Not Allowed to Do?\n-------------------------------------------\nThird-party debt collectors must abide by rules set forth in the Fair Debt Collection Practices Act (FDCPA), and it's worth familiarizing yourself with the many provisions of the law. Here's a sampling of regulations with which debt collectors must comply:\n*   **Calls**: Collection agencies may only call you between 8 a.m. and 9 p.m. If your employer doesn't permit you to take outside calls during work hours, debt collectors can't call you at work. They may not call you repeatedly in what amounts to harassment if you ask them to stop calling.\n*   **Mail**: An agency can send you mail, but can't send a postcard—the contents of which would be visible to anyone. If they send a letter, the envelope should not include a company logo or language that would identify it as being from a debt collector.\n*   **Contacting friends and family**: If a debt collection agency does not have your contact information, they are allowed to contact your relatives, neighbors and associates. However, they cannot reveal that they are collecting a debt and cannot discuss any aspect of your indebtedness with them.\n*   **Disclosure**: A collection agency must disclose who they are, that they are trying to collect a debt and that any information they obtain from you may be used to assist them in collecting the debt.\n*   **Threats, lies and obscenity**: Debt collectors can press you for payment, but they can't threaten your safety or use profanity. They also can't publicize your situation. And they can't lie—for instance, by saying they're about to file a lawsuit they have no intention of filing.\nAdditionally, the debt an agency is pursuing must be valid. You have the right to request, in writing, a debt validation letter showing how much you owe and to whom. The agency must provide this information within five days of initially contacting you.\nWith this information, you should be able to identify what the debt is, determine whether or not it's been previously paid, is the correct amount, and whether it is recent enough to fall within your state's statute of limitations (more on this later). You are also entitled to know the collection agency's name and mailing address so you can check with your creditor to confirm they are legitimate. END
 TITLE: What Is a Collection Agency? CONTENT: How Do Collections Affect Your Credit Scores and Reports?\n---------------------------------------------------------\nHaving an account in collections has a significant negative impact on your credit, and it will stay on your report for seven years.\nBut it's likely your credit scores began to suffer before the collection agency ever got involved. Late and missed payments both factor into determining your credit score, and by the time your account goes into collections, they could have already been reported to the three major credit bureaus (Experian, TransUnion and Equifax).\nCheck your credit report and score as soon as you are contacted by a collection agency. You'll be able to see whether the information has been reported and what impact it may be having. If your original creditor does not routinely report information to credit bureaus—for instance, if you owe your doctor's office or landlord—they may not have reported that your account is in collections yet. In this case, you may have an opportunity to resolve the debt before a report is made. However, if you owe money to a credit card company, bank or other lender, late payments and collections have probably already been noted. Also be aware that if your account has been sold to collections, that debt can be reported as a separate account on your credit report.\nIf you believe any information reported is inaccurate, you can file a dispute with the credit bureau on whose credit report the information appears. Since collections have an impact on your credit report and score, it's worth correcting any errors you find. END
 TITLE: What Is a Collection Agency? CONTENT: Tips for Dealing With Collection Agencies\n-----------------------------------------\nDealing with debt collectors is rarely fun, but it should be manageable—at least with a little strategizing on your part. Here are a few tips to get you started:\n*   **Learn your rights.** Study up on FDCPA rules and contact the Consumer Financial Protection Bureau if you feel the rules are being violated. Visit your state attorney general's website to find out what the applicable statute of limitations is. Your state sets rules on the time companies can take to collect outstanding debt, typically three to six years. If an agency is trying to collect an expired debt, you can send a cease and desist letter and stop collection activity. This also applies if you are approaching the statute of limitations. Important: If your debt's statute of limitations is expired or about to expire and you agree to start payments, you may reactivate the debt and reset your timeline.\n*   **Tackle collections head on.** Though it's no fun having to confront a collection agency, ignoring a call or notice will probably only make things worse. If a debt collector can't reach you but believes the debt is recoverable, they can seek a judgment in court that could result in your wages being garnished or assets seized.\n*   **Take control of the conversation.** Don't let a call from a collection agency catch you off guard—have an idea what you'll say when the phone rings. Feel free to answer the call, but don't have a lengthy conversation or agree to anything in this initial contact. Ask for a debt validation letter and set a time for a follow-up call. In the meantime, take the time to validate the debt, confirm the identity of the collection agency and decide how you'd like to proceed.\n*   **Decide how you will pay.** If you can pay the debt in question immediately, this is probably your best option. You'll end the collection process and can move on with the business of healing your credit. The collection agency may be willing to negotiate a payment plan or partial payment of your debt, which may or may not impact your credit going forward. Finally, if you are in the process of bankruptcy and\/or cannot pay, look into whether you may be \"judgment-proof,\" with no assets to garnish. In this case, you may be able to halt collection activity. END
 TITLE: What Is a Collection Agency? CONTENT: Take Action to Limit the Impact of Collections\n----------------------------------------------\nA third-party collection agency can pursue your debt aggressively, impact your credit and seek legal judgments. However, their power is finite. By knowing your rights, being proactive and working toward the common goal of rectifying your situation, you can minimize the effect dealing with a third-party collection agency has on your life and financial well-being.\nIf a collection agency has contacted you, check your credit report at all three reporting bureaus using AnnualCreditReport.com. You can also check your credit report for free every 30 days directly through Experian. To keep a close eye on your credit, sign up for Experian's free credit monitoring service, which provides you with updates on your Experian credit report, FICO® Score☉ and irregularities that could be the result of fraud. END
 TITLE: How Does Length of Credit History Affect Your Credit? CONTENT: Length or age of credit history refers to the age of the accounts that appear in your credit reports. Credit scoring models use various credit age-related metrics when calculating your score, including:\n*   The average age of your accounts\n*   The age of your oldest account\n*   How long it's been since you opened an account\nAs a general rule of thumb, a longer credit history is better for your credit scores. Additionally, the length of your credit history can impact the relative importance of other scoring factors—as scoring factors can be interdependent.\nThe credit scoring models get all this information by analyzing your credit reports from the three national credit reporting companies (Experian, TransUnion and Equifax). If you get your free credit report from Experian, we automatically calculate and show you the average age of accounts and the age of your oldest account. END
 TITLE: How Does Length of Credit History Affect Your Credit? CONTENT: What Happens When You Close an Account?\n---------------------------------------\nClosing a credit account or paying off a loan can impact your credit scores in several ways. However, people commonly misunderstand how and when a closed account will impact age-related scoring factors. This may be because it depends on the type of credit score and the scoring model analyzing the information.\nMost consumer credit scores are produced by two credit scoring companies: FICO® and VantageScore®. For FICO® Scores☉ (the scores used by most lenders), the age-related metrics are based on both the open and closed credit accounts that appear on your credit reports. As a result, paying off a loan or closing a credit card won't immediately impact your length of credit history. It could still impact your FICO® Scores in other ways, however (more on that below).\nVantageScore, on the other hand, might not include some closed accounts in its credit age calculations, depending on your credit profile and the type of account that was closed. As a result, closing the account could lower your average age of all accounts, and may hurt your VantageScore credit scores.\nWith scores from both FICO® and VantageScore, the payment history that's part of closed accounts can continue to impact your credit scores as long as the accounts appear in your credit report. For example, if you made on-time payments before the account was closed, that could help your credit. If you missed payments, however, those negative marks could continue hurting your credit until the closed account falls off your credit report.\nClosed accounts can stay on your credit reports for up to 10 years if you never missed a payment. If you missed a payment and then brought the account current before it was closed, the late payment will be removed after seven years, but the account can still stay for 10. However, if your account was delinquent when it was closed, the entire account will be removed seven years after the account's original delinquency date. END
 TITLE: How Does Length of Credit History Affect Your Credit? CONTENT: How to Improve Your Length of Credit History\n--------------------------------------------\nImproving the length of your credit history often requires a little action and a lot of patience.\nIf you don't have any credit accounts, you'll want to open new accounts so you can start building your credit history. Because getting new credit when you have none can sometimes be challenging, credit-builder loans and secured credit cards are often a good place to start. Having several accounts can also be better than only having one account on your credit report, as long as you manage them responsibly and always make on-time payments.\nOnce you have open accounts, you'll need to be patient as they slowly age over time. One potential shortcut is to become an authorized user on a family member's credit card. As an authorized user, you get the benefit of the primary cardholder's credit history with the card and can use the card to make purchases (if the primary account holder agrees). As long as the primary cardholder pays all the bills on time and keeps a low balance, your credit scores can benefit.\nJust be sure the credit card issuer reports authorized user status to the credit reporting companies so the account is included on your credit report—not all do. Or, if you're the one with an old credit card, you might want to help a spouse or child with their credit by adding them as an authorized user on your account.\nConsidering how long it can take to build a long credit history, you might not want to frequently apply for new loans or credit cards. Each new account you open will lower the average age of your accounts.\nHowever, if you need a loan or see a great credit card offer, don't let length of credit history keep you from applying. While age-related factors can impact your credit scores, they're not as important as other scoring factors. FICO® says its length of credit history category only accounts for about 15% of the average person's FICO® Score. Similarly, VantageScore gives its age of credit history a \"less influential\" weighting. END
 TITLE: How Does Length of Credit History Affect Your Credit? CONTENT: What Other Factors Affect Your Credit Scores?\n---------------------------------------------\nYour credit scores are determined by complex scoring algorithms that analyze many aspects of your credit reports. The most important factors are typically your payment history and your credit usage.\n*   **Payment history** includes whether you've made on-time payments, missed payments, had accounts sent to collections or filed for bankruptcy. Having a long history of on-time payments is best for your scores.\n*   **Credit usage** includes the number of accounts you have with balances and how much debt you still have to repay on loans. But it primarily depends on your credit utilization ratio—how much of your available credit you're using on revolving accounts, mainly credit cards. Using only a small portion of your available credit is best for your credit scores.\nThere are also other minor scoring factors, such as whether you have recent hard inquiries from applying for new credit accounts or whether you maintain a mix of credit accounts.\nIf you want a good credit score, focus on the most important categories while being mindful of the less important ones. In general, try to:\n*   Have a few open accounts that are reported to the credit bureaus.\n*   Make all your monthly payments on time.\n*   Only use a small portion of your revolving accounts' credit limits.\n*   Don't apply for or open too many new accounts.\nOver time, all of these actions can work together to help you earn an excellent credit score. END
 TITLE: How Does Length of Credit History Affect Your Credit? CONTENT: Monitor Your Credit for Free\n----------------------------\nChecking your free Experian credit report can give you a snapshot of what's on your credit reports and the age of your different accounts. You may also want to regularly monitor your credit report, which you can also do for free. The alerts can warn you about potential fraud, letting you respond promptly, and the insights can teach you about the different steps you can take to improve your credit scores. END
 TITLE: Why Is There an Inquiry From the IRS on My Credit Report? CONTENT: What Does It Mean if I See an Inquiry From the IRS on My Credit Report?\n-----------------------------------------------------------------------\nAn inquiry from the IRS shouldn't necessarily be a cause for concern.\nWhile the IRS has the legal authority to access your credit file for reasons related to collections investigations, it's common for the agency to request help from a credit bureau simply to verify a person's identity. If an IRS inquiry on your credit report concerns you, it's best to consult a tax professional.\nIf the IRS uses credit report information to verify your identity, it will cause a soft inquiry to appear on your credit report. Soft inquiries will be removed from your report after about two years and will not affect your credit score. The inquiry will only appear on the file maintained by whichever credit bureau responded to the IRS request. So if the IRS requested the inquiry through Experian, for instance, that activity will not show up on your TransUnion or Equifax credit reports.\nThe IRS works with a credit bureau to verify your identity by asking the bureau to generate security questions based on the information in your credit report. For example, you might be asked about previous addresses, when you opened certain accounts and which lenders you've borrowed from in the past. When this is done, the IRS won't see your credit report, and the credit bureau won't see your tax information.\nThe questions you'll be asked are multiple choice, so if they're referencing an account you opened a while ago, the different options might jog your memory. If you don't know the answers to some of the questions, that could be an indicator of fraudulent activity on accounts under your name.\nBut there are several reasons the information in these questions might be unfamiliar. For instance, you may have applied for credit with one lender not realizing that it was owned by another company, and the parent company may be the one listed on your report. If you're an authorized user on someone else's account, the details might not be familiar to you either.\nIf you are concerned about identity theft, you can reduce the risk of fraud on your tax or credit accounts by regularly checking your transaction records and requesting your free credit report each year to look for any unfamiliar account activity. Additionally, you may want to enroll in Experian IdentityWorks℠, which includes identity theft and dark web monitoring, along with alerts about any suspicious activity linked to your credit report. END
 TITLE: Why Is There an Inquiry From the IRS on My Credit Report? CONTENT: Can Owing the IRS Hurt Your Credit?\n-----------------------------------\nOutstanding taxes do not appear on your credit report, so if you owe the IRS, you can breathe easy as far as your credit is concerned. But while your overdue taxes won't hurt your credit score, the IRS charges interest and penalties on back taxes, and these costs can snowball quickly.\nTax liens are not included on credit reports, either. In 2017, Experian, TransUnion and Equifax decided to eliminate them from consumer files. As of April 2018, tax liens no longer showed up on any reports and the policy remains in place today.\nHowever, a tax lien can still negatively impact your borrowing opportunities. If a lender searches public records as part of their loan application process, they may find out that you have a tax lien and deny your application because of it.\nIf you're behind on your taxes, you can set up an installment agreement with the IRS to bring your account current. The payments you make under that agreement will not be reported to the credit bureaus, but they will help you clear your debt over time. These installment plans do, however, accrue interest and fees, and you'll have to pay a setup fee to establish the plan.\nYou can also pay tax bills using a credit card or personal loan. If you make your monthly payments on those accounts on time, your payment history can boost your score. Keep in mind, though, that your credit utilization also affects your score, so charging a large tax debt to a credit card or taking out a substantial loan may pull that number down. You may also end up paying much more in interest, especially if you put the bill on a credit card. END
 TITLE: Why Is There an Inquiry From the IRS on My Credit Report? CONTENT: Does Tax Information Show Up on Credit Reports?\n-----------------------------------------------\nTax information—including on-time payments and back taxes—will not show up on your credit report. But ignoring a tax debt or pushing it down the road can hurt your finances.\nIf a lender finds out you have a tax lien against your property, they may not feel confident working with you. Furthermore, when you apply for a mortgage, you'll need to disclose all your debt payments, even if they don't appear on your credit report. A substantial IRS bill or big monthly payment affects your debt-to-income ratio, which plays a substantial role in lending decisions.\nThe best way to handle your taxes is head-on. Even if you can't pay your bill in full, making as large a payment as you can and setting up a payment plan for the rest will help you close out the debt with a clear timeline. On the other hand, you may choose to take out a loan to pay off the IRS so your credit score can benefit from your on-time payments.\nHowever you choose to handle it, you want to be proactive rather than letting your tax bill pile up. As you manage your bills, it's important to monitor your credit closely and address any late payments or potential fraud as quickly as possible. A great credit score can help you stay prepared for any tax-related expenses in the future. END
 TITLE: Why Doesn’t My Auto Loan Show Up on My Credit Report? CONTENT: How a New Auto Loan Can Impact Your Credit\n------------------------------------------\nDoes it actually matter whether your new loan shows up on your credit report? It might. If you're building or rebuilding your credit, a new auto loan can help you out in a few ways.\nFirst, it adds to your credit mix. A car loan is considered an installment loan—a loan with fixed monthly payments and a predetermined payoff period—which is a different type of credit than a revolving credit card account. Having a car loan appear on your report shows creditors that you have experience managing diverse types of credit. It may also boost your credit score: Credit mix accounts for 10% of your FICO® Score☉ , the scoring system used most commonly by lenders.\nYour credit score will also benefit from having timely monthly loan payments show up on your credit report. Payment history is the most heavily weighted factor in calculating your score, so you want your monthly payments to count.\nWhat are some typical reasons your new auto loan might not appear on your credit report? END
 TITLE: Why Doesn’t My Auto Loan Show Up on My Credit Report? CONTENT: Your Auto Loan Has Not Been Open Long Enough\n--------------------------------------------\nThe three major credit reporting agencies—Experian, TransUnion and Equifax—update your credit report based on information they receive from lenders and creditors. And while they update your information continuously, they can only do so when they receive information from your lenders and creditors. If you opened a new car loan within the past 30 to 60 days, your lender may be yet to notify any credit bureaus of the account.\nWhile you're waiting for your information to update, you can access your credit reports from all three bureaus through AnnualCreditReport.com.\nYou can also check your Experian credit report anytime for free. Or consider free credit monitoring through Experian, which can send you alerts when changes are made to your Experian credit file. END
 TITLE: Why Doesn’t My Auto Loan Show Up on My Credit Report? CONTENT: Your Lender Does Not Report to All Credit Bureaus\n-------------------------------------------------\nWhile many lenders report loan activity to all three credit bureaus, some only report to one or two. In fact, some lenders don't report to credit bureaus at all. If your loan doesn't appear on one of your credit reports, try checking the other two.\nUltimately, lenders are not required to report their accounts. But be aware: Just because a lender doesn't report your loan and successful payment history, it doesn't mean they can't or won't report negative information if your car is repossessed or you default on your loan. END
 TITLE: Why Doesn’t My Auto Loan Show Up on My Credit Report? CONTENT: Something Went Wrong When Reporting the Account\n-----------------------------------------------\nMistakes are rare, but they do happen. Your information may have been entered into the credit reporting system incorrectly. Or, maybe a technical issue or backlog has delayed your information being posted. It's also possible that, if you have a co-borrower, the loan could have been reported to their credit file and not to yours.\nFollow up with your lender about possible errors or oversights. If your loan shows up on your credit report but contains inaccurate information, you can contact your lender or submit a dispute to the credit bureau in question. END
 TITLE: Why Doesn’t My Auto Loan Show Up on My Credit Report? CONTENT: What to Do if Your Loan Doesn't Appear on Your Report\n-----------------------------------------------------\nIf your auto loan doesn't show up on your credit report after 30 to 60 days, reach out to your lender. Ask them if it's their policy to report loan activity to the credit bureaus and, if so, whether they can follow up to make sure your loan information has been reported accurately.\nShort of refinancing with another lender, you have limited recourse if your lender simply doesn't report to any of the credit bureaus. In the future, you may want to find out what your lender's policies on credit reporting are before you submit a loan application.\nIn the meantime, it can still be beneficial to monitor your credit score and report periodically to check your credit—and to make sure the information in your credit report is as accurate and up to date as possible. The information in your credit report will likely be instrumental in getting your next auto loan or credit card, whether or not your current loan information is being reported. END
 TITLE: Why Is the Credit Card Balance on My Credit Report Different? CONTENT: When Do Credit Card Companies Report Balances?\n----------------------------------------------\nCredit card companies report your credit card usage to the three major consumer credit bureaus—Experian, TransUnion and Equifax—after each billing cycle. The frequency may vary a bit, since each credit card issuer has its own reporting schedule, but you can generally expect your credit card activity to be reported to the credit bureaus every 30 to 45 days. Whenever new information is reported, your credit report is updated and your credit score may change as a result.\nWhen you check your credit report, you may notice a balance on a credit card that you recently paid in full. That's because your credit report lists the balance that was on your credit card when the credit card company last reported to the credit bureau. Because reporting typically happens at the end of a billing cycle, you're likely to see the balance that appeared on your last monthly statement.\nIf you have a new credit card, the balance may not appear on your credit report at all. Generally, a new credit card won't show up on your credit report until 30 to 60 days after you opened the account. (This may vary depending on the credit card issuer and when the card's billing cycle ends.)\nIf you're trying to reduce your credit card balances before you apply for a loan, you might want your credit card account to show a zero balance on your credit report. The only way to accomplish this is to pay the balance in full and not use your credit card for the following month. At the end of the next month, your credit card company will report the zero balance to the credit bureaus, and your credit report will reflect your account's paid-off status. END
 TITLE: Why Is the Credit Card Balance on My Credit Report Different? CONTENT: How Do Credit Card Balances Affect Your Credit?\n-----------------------------------------------\nTo avoid incurring interest on your credit card, you must pay your statement balance in full every month. Otherwise, whatever portion of the statement balance you don't pay will carry over to the following month and will begin to accrue interest.\nIn addition to racking up interest, carrying a balance on your credit card might lower your credit score by increasing your credit utilization ratio. This ratio measures the amount of revolving credit you're using compared with the total amount available on each account and across all your accounts. If your credit utilization rate goes over 30%, your credit score may drop.\nHow does credit utilization work in practice? If you have three credit cards, each with a $5,000 credit limit, you have $15,000 in total available credit. You could use up to $4,500 of your total available credit and still be within the 30% range for overall credit. You could also carry a balance of up to $1,500 per card and remain within the 30% range for each account. If you carry a $2,500 balance on one card, however, you'd be using 50% of that card's available credit, which could hurt your credit score.\nYou can reduce the impact of high credit utilization on your credit score by ensuring none of your card balances cross the 30% threshold. In addition, if you have old credit card accounts you no longer use, keeping them open can help reduce your overall credit utilization by increasing the amount of credit available to you. END
 TITLE: Why Is the Credit Card Balance on My Credit Report Different? CONTENT: How to Dispute Inaccurate Credit Report Information\n---------------------------------------------------\nIf you believe there is inaccurate information on your credit report that could be hurting your score, you can dispute it with the credit bureau on whose report the information appears. Filing a dispute does not itself affect your credit score. However, correcting inaccurate information or adding missing information that positively reflects on your credit usage may help improve your credit score.\nYou can get a free copy of each of your credit reports from the three national credit bureaus at AnnualCreditReport.com. If you review your reports and find information you believe is incorrect, you'll need to dispute it separately with each credit bureau that has the information. Each credit reporting agency has its own process for filing disputes, so you'll need to check the specific one to find what steps you need to take.\nYou can file a dispute with Experian online, by phone or by mail. Once you've filed a dispute, you'll receive notifications of the progress of the dispute and its final resolution. END
 TITLE: Why Is the Credit Card Balance on My Credit Report Different? CONTENT: Keep an Eye on Your Credit\n--------------------------\nGet into the habit of monitoring your credit card balances and regularly reviewing your credit report. By checking that your statements are correct and confirming that your credit information is reported to credit bureaus accurately, you can help build and protect a good credit score. END
 TITLE: Should I Close a Credit Card I Opened for Holiday Rewards? CONTENT: Does the Card Provide a Financial Benefit?\n------------------------------------------\nSay you opened this credit card account because you wanted to score an introductory bonus, such as enough airline miles to get a free round-trip flight. Bonus offers for miles, points or cash back usually require you to hit a spending threshold within a set time period.\nBut looking beyond any introductory bonus offers, would this card continue to provide value for you moving forward? For example, if it's a cash back card that offers high rewards tiers for spending categories you use often, like gas or grocery shopping, you could benefit year-round if you use the card strategically.\nOr maybe it's a travel card loaded with other perks that could come in handy beyond the holidays (and once the pandemic ends), such as free checked baggage, complimentary lounge access and priority boarding. If you can continue to make use of the card's rewards or benefits, and you trust yourself to spend responsibly, it could make sense to hang onto the card. END
 TITLE: Should I Close a Credit Card I Opened for Holiday Rewards? CONTENT: Will Keeping the Card Open Tempt You to Spend?\n----------------------------------------------\nSpeaking of spending responsibly: We all have different money habits, and exercising restraint is easier for some than others. Are you the type of person who can stick a credit card in the back of your wallet or desk drawer and forget about it, or will having that account open tempt you to buy things you wouldn't otherwise?\nIf you have the discipline to use that account wisely, then it could be worth keeping it open. But if you worry you'll be tempted to spend impulsively with plastic, it might be safer to cancel the account after the holidays. END
 TITLE: Should I Close a Credit Card I Opened for Holiday Rewards? CONTENT: Is There an Annual Fee?\n-----------------------\nSome credit cards demand an annual fee in exchange for their generous rewards programs. These fees commonly range anywhere from less than $50 to several hundred dollars for high-end rewards cards. Some issuers waive the fee the first year, but others charge it from the start. These fees can be outweighed by a card's reward incentives, but not always, so it's worth doing the math to figure out if the rewards offset the fee for you.\nIf the card you opened has an annual fee and you've already paid it for the first year, it might make sense to keep it open to make sure you get your money's worth. If there's an annual fee you won't pay until the second year, consider how much value you'll get out of the card and whether the fee will justify keeping the account. If you find you like the card but don't want to pay the annual fee, consider contacting the issuer to see if there's another, similar card without an annual fee they could switch you to. This is called a product change and may or may not work depending on the issuer and the cards available. END
 TITLE: Should I Close a Credit Card I Opened for Holiday Rewards? CONTENT: Are You Likely to Need It Later?\n--------------------------------\nLet's say you have a small financial emergency, like a dead car battery or unexpected vet bill. Can you get by without this credit card, either with savings or other lines of credit? If not, your new credit card might serve you well down the road, and it's probably wise to hang on to it for later. And even if you don't think you'll be needing the card for future purchases, you might still hang on to the card just in case, as long as it doesn't carry a hefty annual fee.\nKeep in mind that if you apply for new credit cards frequently, you look riskier to lenders and it can temporarily lower your credit score due to several factors. Rather than closing your new card only to end up applying for another one later on, it's better for your credit to keep this account open and just use it sparingly to keep it active. END
 TITLE: Should I Close a Credit Card I Opened for Holiday Rewards? CONTENT: Be Sure to Consider How Credit Cards Affect Your Credit\n-------------------------------------------------------\nAs you think through the factors listed above, there's a benefit to keeping a card account open that you should keep in mind: its impact on your credit scores.\nCredit cards affect your credit score in several ways, the most important being payment history, which accounts for 35% of your FICO® Score☉ . If this is your only credit account, using the new credit card to contribute to your history making on-time payments could greatly help your scores. As long as you make all your payments on time and avoid carrying a high balance, your new account can help you show lenders you know how to manage credit responsibly.\nOn the topic of high balances, another important factor is your credit utilization ratio, which accounts for 30% of your FICO® Score. This ratio indicates how much of your available credit you're using. Carrying a high debt load makes you appear risky to lenders, so it's usually advised to keep your total utilization below 30%.\nWhenever you add a new credit card to the mix, you increase your amount of available credit. As long as you maintain a low (or zero) balance on this new account, simply keeping the account open can help improve your credit utilization ratio, which can strengthen your credit score. If you ditch the card, your overall credit limit goes down. Depending on how much debt you carry on other cards, this could cause your credit utilization to spike and potentially harm your credit score. In other words, if you're actively trying to improve your credit, or you're planning to apply for a loan in the near future, keeping the account open could be beneficial. If your credit is already in great shape and you're not concerned about your utilization shifting drastically, then canceling may not impact you very much. END
 TITLE: Should I Close a Credit Card I Opened for Holiday Rewards? CONTENT: Weigh the Pros and Cons Before Closing a Card\n---------------------------------------------\nWhether you should keep this new account open after the holidays is ultimately a personal decision that comes down to your spending habits, your credit score, your financial goals and the potential future benefits of the card.\nIf you want to keep tabs on how this new account has impacted your credit, either positively or negatively, you can get your free credit report and scores from Experian. Plus, when you sign up for free credit monitoring, you can gain a better understanding of how your credit card accounts and spending decisions shape your credit in the short-term and the long-term. END
 TITLE: Could Closing a Bank Account Affect My Credit? CONTENT: Does Bank Account Information Show Up on a Credit Report?\n---------------------------------------------------------\nBanks and credit unions don't report your bank account information to the credit reporting agencies (Experian, TransUnion and Equifax), so it's not listed on your credit report. Account closures are also absent from your credit report, regardless of whether you or the financial institution closed the account.\nYour credit score is based on the information found on your credit reports, and reflects how you manage your debt payments, regardless of what assets you have available. As such, there's no direct link between your checking, savings or money market accounts and your credit scores. END
 TITLE: Could Closing a Bank Account Affect My Credit? CONTENT: While the actual closure of a bank account won't impact your credit, it's possible for it to indirectly impact your credit score if the account had a negative balance when it was closed.\nIn this case, if you don't pay off the debt you owe in a timely manner, the bank or credit union could send it to a collection agency. The agency may choose to report the collection account to the credit bureaus, which can have a significant negative impact on your credit score.\nWhat's more, the collection account will remain on your credit report for seven years from the date of the original delinquency, whether or not you pay it off.\nIn addition to potential harm to your credit score, an overdrafted bank account that's been closed may also get reported to ChexSystems, which manages your banking report—this is similar to a credit report but only lists information about your current and past banking activities.\nWhether you or the financial institution closed the account, leaving it with a negative balance could make it difficult for you to get approved for another traditional bank account in the future. If this happens, you may need to opt for second-chance bank accounts or prepaid debit cards. END
 TITLE: Could Closing a Bank Account Affect My Credit? CONTENT: How to Safely Close Your Bank Account\n-------------------------------------\nBefore you close a bank account, contact the bank or credit union to ensure you don't have a negative balance. Also consider any outstanding checks or pending transactions that could bring the balance negative or hit the account after you've closed it.\nIf you're moving your banking to a different financial institution, one way to do this is to switch your deposits and transactions to the new account but leave some money in the old bank account for a week or two (or longer). Then, once you've confirmed there are no surprise transactions, transfer your funds to the new account and close it.\nIf the bank or credit union notifies you that your closed account has a negative balance, make it a priority to take care of it as quickly as possible. END
 TITLE: Could Closing a Bank Account Affect My Credit? CONTENT: Monitoring Your Credit Is Important to Your Financial Health\n------------------------------------------------------------\nWhile closing a bank account won't directly impact your credit, monitoring your credit regularly is essential to helping you develop and maintain good financial health. Checking your credit score and reports will give you an idea of how well you're managing your debts, and also give you some clues on how you can improve.\nAs you work to build a good credit history, it'll make it easier to qualify for inexpensive credit, which, in turn, will help you save money and keep your bank account balances out of the red. END
 TITLE: Does Your Income Appear on Your Credit Reports? CONTENT: What Is Included in Your Credit Report?\n---------------------------------------\nA credit report is a record of your history of managing and repaying debt. It's the basis for your credit scores, and one of the tools lenders and other companies use when deciding whether to do business with you and, if so, on what terms.\nCredit reports are maintained by three major national bureaus (Experian, TransUnion and Equifax) and compile information on how and when you pay your bills, how much debt you have and how long you have been managing credit accounts. More specifically, your credit report includes:\n*   **Personal information**: Your name, recent addresses, current and past employers, and names of anyone with whom you've jointly applied for credit.\n*   **Accounts**: Your open and closed loans and credit card accounts. (The length of time your accounts remain on your report depends on how you've managed them and other factors.)\n*   **Inquiries**: Companies' requests for your credit report or credit score, which remain on your credit report for two years.\n*   **Public records**: If you file for bankruptcy, the details will appear in this section of your credit report, where they will remain for seven or 10 years depending on the type of bankruptcy. END
 TITLE: Does Your Income Appear on Your Credit Reports? CONTENT: Lenders May Ask for Income Information\n--------------------------------------\nLenders often factor your income into their lending decisions and, under the Credit CARD Act of 2009, they are legally obligated to do so in many cases. They typically ask about your income on credit applications and may require proof, in the form of a pay stub or tax return, before finalizing lending decisions.\nSometimes creditors ask for proof of employment and the name of your employer on credit application as well. If they do so, the names of past employers may appear in the personal information section of your credit report. Like other items in the personal information section, those employers have no bearing on your credit standing or credit scores. END
 TITLE: Does Your Income Appear on Your Credit Reports? CONTENT: Does Income Affect Credit Score?\n--------------------------------\nYour credit scores are calculated using information in your credit report and don't consider your income as a factor. The factors that do influence your credit score include:\n*   **Payment history**: Timely payments help improve your credit score; late and missed payments can hurt your score significantly.\n*   **Credit usage**: The percentage of available credit you're using on your credit cards, also known as utilization rate, has considerable influence on credit scores. Rates greater than 30% can do serious damage to your score, but in general, the lower, the better.\n*   **New credit accounts**: Credit checks associated with credit applications and opening of new loan or credit accounts can temporarily reduce your credit score, though scores tend to rebound within a few months as long as you keep up with your debt payments.\n*   **Length of credit history**: This factor considers how long you've been managing and repaying debts. A longer credit history is seen as a mark of experience with credit management. All other factors being equal, a longer credit history tends to lead to a higher credit score.\n*   **Credit mix:** This is the number and variety of loans and credit accounts you have. Lenders view a combination of credit accounts as a sign you can handle credit well, so a varied credit mix tends to promote higher credit scores.\nBecause income is not found in your credit report, it cannot influence your credit scores directly. A reduction in income can, however, affect credit scores indirectly if it causes you to fall behind on debt payments, drive up your credit card balances or take on new debt. By the same token, an increase in income could make it easier for you to afford additional credit, but won't affect your credit score unless you use your new income to address the factors that affect your score directly.\nA loss or drop in income may also affect your ability to qualify for new loans or credit, since lenders typically look at debt-to-income (DTI) ratio—the percentage of your monthly income required to pay your monthly debts—when evaluating your creditworthiness. A reduction in income increases DTI ratio, and could make you ineligible for certain types of credit. END
 TITLE: Does Your Income Appear on Your Credit Reports? CONTENT: Check Your Free Credit Report and Credit Score\n----------------------------------------------\nA good way to track the status of your personal credit is to check your free credit report and free credit score. Your FICO® Score☉ from Experian includes information about the specific factors that are helping your credit score, as well as factors preventing you from having a higher score. No matter what your income level is, you can use that information to start working toward a better credit profile. END
 TITLE: What Is a Credit Report? CONTENT: What Is in a Credit Report and How Do You Read It?\n--------------------------------------------------\nA credit report is a readable presentation of the data stored in your electronic credit file at one of the three national credit bureaus (Experian, TransUnion or Equifax). The information stored in your credit file at each bureau is essentially the same, but each bureau organizes the data differently, and each formats its credit report in its own way.\nYour Experian credit report is divided into four sections: END
 TITLE: What Is a Credit Report? CONTENT: How Is a Credit Report Made?\n----------------------------\nThe national credit bureaus maintain millions of consumers' credit histories, based on information supplied by lenders and other entities. Each file includes records relevant to a person's history borrowing and making monthly payments. For identity verification purposes, your credit file also contains information such as your current name and any other names you may have used in the past, current and past addresses and your date of birth.\nA credit file is not set in stone—it's a living and breathing record that's constantly being updated with the latest information being provided to the bureaus by your lenders and other institutions. When a company such as a lender, insurance provider or potential employer requests to check your credit, the bureau pulls the contents of your credit file that are relevant and disclosable by law to the company, and packages it in an organized document known as a credit report.\nYour credit report does not contain all the data in your credit file—the credit bureaus have your full payment history on record, for instance, but are typically authorized to release only records for the last seven years. Your credit report also cannot be provided to just anyone; there are strict limits on the types of companies that can check your credit and when they are allowed to do so.\nThe companies that supply information to the bureaus are not legally required to, but most do report on the status of accounts to one or all three credit bureaus every month. Experian maintains credit reports for more than 220 million consumers in the U.S. END
 TITLE: What Is a Credit Report? CONTENT: Why Is Your Credit Report Important?\n------------------------------------\nThe data in your credit report is the raw material used to create credit scores, important numbers that can have a big financial impact on your life.\nIf your credit report shows a long history of on-time payments, it may mean you have higher credit scores, which will help you get credit cards and loans on more favorable terms. Conversely, late payments, bankruptcy and similar marks on your credit reports can lead to lower credit scores and make it harder for you to get approved for credit cards and loans, or cause a lender to charge a higher interest rate.\nIn addition, a credit report can reveal unauthorized credit activity associated with identity theft. Credit inquiries and new loan or credit accounts you're unaware of can indicate fraudulent activity. Reviewing your credit reports regularly can help you detect suspicious activity and resolve it more quickly. END
 TITLE: What Is a Credit Report? CONTENT: When Should You Get a Credit Report?\n------------------------------------\nIt's a good idea to check your credit reports two to three months before making a major credit application, such as for a home mortgage or car loan. Review your reports carefully to make sure you recognize all listed accounts and the balance and payment information matches your financial records. If there is anything on your credit report that you believe is inaccurate, you can file a dispute to correct it.\nIt is also a good practice to review your credit report from each of the credit reporting agencies at least once a year. Associating credit report checks with another event in your life—like the New Year holiday or your birthday—can help you remember. You can get a free credit report directly from Experian every 30 days and a free report every 12 months from each of the three national credit bureaus at AnnualCreditReport.com. (Through April 2021, you can get a free credit report each week from the three credit bureaus from AnnualCreditReport.com.)\nUnder the federal Fair Credit Reporting Act, you also qualify for additional free credit reports if you are denied credit, employment or insurance on the basis of your credit information. To take advantage of this, contact the company that denied you service and request the name and contact information of the credit bureau from which it obtained your information. Contact that bureau within 60 days using the information provided to obtain your free credit report. END
 TITLE: What Is a Credit Report? CONTENT: What to Look for in a Credit Report\n-----------------------------------\nWhen you examine your credit report, it's a good idea to to do the following:\n*   **Be certain you recognize all the accounts listed on your report.** If not, get in touch with the lender listed for that account to find out what is happening and to check for the possibility of identity theft.\n*   **Make sure the account status information is correct for your accounts.** If it is not, start by calling the lender to ask about the discrepancy, then initiate a dispute.\n*   **Check the credit utilization ratio on each revolving credit account.** To do this, divide the reported balance for each by its credit limit, then multiply by 100 to get a percentage. You also can calculate an overall utilization ratio by dividing the sum of all your balances by the sum of all their credit limits. Remember to keep your utilization ratio below 30% on individual accounts and overall. END
 TITLE: What Is a Credit Report? CONTENT: How Information in Your Credit Report Affects Your Credit Scores\n----------------------------------------------------------------\nExcept for your personal information, everything listed in your credit reports has the potential to affect your credit scores, with payment history and credit utilization being the two most important factors.\nLenders like to see a healthy combination of well managed accounts, such as credit cards, an auto loan and a mortgage, so a good credit mix can positively affect your credit score as well.\nYour credit report can help you understand information that affects your credit scores, and can be the basis of a plan for credit-score improvement. END
 TITLE: When Is a Credit File Created? CONTENT: What Is a Consumer Credit File?\n-------------------------------\nA consumer credit file sometimes gets confused with a consumer credit report, but technically the two are different.\nA **credit file** refers to the information that one of the three major consumer credit bureaus (Experian, TransUnion or Equifax) has about you within its database. It may include, for example, information you supplied when applying for a credit card, as the credit card company may send the information from your application to the bureau. Your name, address and Social Security number from the application may be added to the file.\nIf you're approved for the credit card, the card issuer will also report your card account's information (such as when the account was opened and your credit limit) as well as the timeliness of your monthly payments. Your credit file may also include information regarding your recent applications for new credit, certain public records and records of any accounts in collections.\nA **credit report**, on the other hand, is the information in your credit file organized in a way that's consumable by the party requesting it, whether that's you or a potential lender. Not everything in your credit file ends up on your credit report. Records of most late debt payments, for instance, shouldn't appear on your credit report if they're more than 7 years old.\nYour credit report is used to generate your credit scores and may be viewed by lenders to assess your creditworthiness. You can request a free copy of your credit report from all three credit bureaus through AnnualCreditReport.com.\nNeither your credit report nor your credit file contains information about your employment status, income or assets, even if you've provided that information on an application for credit.\nIn credit-world speak, the companies that send information to credit bureaus are called data furnishers, and the accounts that appear in your credit file are called tradelines. END
 TITLE: When Is a Credit File Created? CONTENT: When Does Your Credit Report Start?\n-----------------------------------\nYou're not assigned a credit report at a certain age or given one at birth. You'll first have to have a credit file with a credit bureau. Then, when your credit report is requested, the bureau will look through its database to find information related to you and compile it to create your credit report.\nBecause creditors may not report to all three bureaus equally, your credit report may look different depending on the bureau providing it. It also may differ depending on who requested it. For instance, when you request a copy of your credit report, you'll see a list of your recent hard and soft inquiries. But a lender may get a copy that only has hard inquiries.\nIf a credit file exists for a minor, credit bureaus might not disclose the information about them in their databases. Parents sometimes add their children as authorized users on credit cards, and the credit card issuer may report the account to the credit bureaus under the child's name. But if a creditor requested the child's credit report, Experian would respond saying it won't provide the information because the credit history is associated with a minor.\nA parent, legal guardian or the minor themselves (once they're 14) can request a minor's credit report. Once the child turns 18, Experian will share their credit history, and the authorized user account could help the child's credit. END
 TITLE: When Is a Credit File Created? CONTENT: What Does Your Credit Score Start At?\n-------------------------------------\nYour credit score doesn't necessarily have a specific starting point. In fact, you may not have a credit score at all.\nCredit scoring companies, such as FICO® and VantageScore®, create mathematical credit scoring models that analyze the information in your consumer credit file to determine your credit scores. When someone requests your credit report, they can also request a credit score based on that same information.\nThe resulting credit score can depend on which credit bureau the credit report is coming from and which credit scoring model is analyzing the report. You may get hundreds of different scores based on the variations.\nYou also might not be scoreable if you've never had your information sent to the credit bureaus, or you don't have any recent activity in your accounts.\n*   For FICO® credit scores, you need to have an account that's at least six months old in your credit file. You also need to have an account that's been updated in the past six months—which could be the same or a different account.\n*   VantageScore credit scores have a lower threshold, and you may be scoreable if you have an account that's fewer than six months old. Or, if you have older accounts and no recent activity.\nYou can get a free FICO® Score☉ based on your information in the Experian credit file. END
 TITLE: When Is a Credit File Created? CONTENT: How to Start Building Credit\n----------------------------\nIf you're not currently scoreable or you want to improve your score, you can take a few simple steps:\n*   **Open an account that will be reported to the credit bureaus.** Many people start with a student loan, as an authorized user on someone else's credit card, with a credit-builder loan or a secured credit card.\n*   **Make your payments on time.** Having your information in a bureau's credit file doesn't necessarily mean you'll get a good credit score. Your payment history is the most important factor in your credit scores, so make sure you make at least your minimum payments on time to avoid hurting your credit. This is also true of accounts that don't get reported to the credit bureaus, as your account could be sold to a collection agency that can report your nonpayment to the bureaus.\nThose are the two basic steps to start. As you learn more about how to build credit, you'll uncover how factors in addition to your payment history can impact your scores. END
 TITLE: When Is a Credit File Created? CONTENT: Monitor Your Credit\n-------------------\nKeeping an eye on your credit reports is important. Tracking your progress can help you stay motivated as you establish and build your credit. Experian offers free access to your Experian credit report and free credit monitoring, with notifications if there's a suspicious change in your report.\nYou'll also be notified when there's a significant change in your credit report, such as a new account being added. An unexpected change may indicate your identity was stolen, and you'll want to act quickly to close the fraudulent account and get your credit in order.\nWith Experian IdentityWorksSM, you can monitor your three credit reports, lock and unlock your Experian report, and get up to $1 million in identity theft insurance. END
 TITLE: How Does the IRS Verify Your Identity? CONTENT: It might so happen that the IRS receives a tax return filed under your name and SSN that raises some red flags. If they suspect fraudulent activity, they'll send a letter asking you to confirm that you indeed filed the return. This could prevent the fraud from going any further, and also provide a heads up that you might want to check your credit report and financial accounts for indications of other fraudulent activity.\nThe letter you get from the IRS will provide specific direction on your next steps, which may include securely verifying your identity online. This will require you to provide the following:\n*   Your personal account number from a credit card, mortgage, student loan, car loan, or home equity loan or line of credit\n*   A mobile phone number that's tied to your name\n*   The letter you received from the IRS\n*   The income tax return that corresponds to the letter\n*   The mailing address associated with your previous year's tax return\nIn some cases, you'll be instructed to call the IRS so the agency can verify your identity over the phone. If they're unable to do so for some reason, you can gather up the necessary documents and do it in person at your local IRS office. END
 TITLE: How Does the IRS Verify Your Identity? CONTENT: Signs You Might be Getting Scammed\n----------------------------------\nIt isn't unheard of for fraudsters to pose as IRS officials in an attempt to obtain money or personal information from victims. If someone who says they're with the IRS contacts you by email, phone or in person, stay skeptical—any initial correspondence from the IRS will show up in your mailbox. The IRS may follow up with you via other communication methods but not without sending written notice first. If you receive a phone or email message asking you to key in your SSN or the PIN code you use to file your taxes online, don't do it.\nThreats are another warning sign of foul play. Neither the IRS nor the Social Security Administration will ever threaten to cancel or suspend your SSN. They also don't use intimidation tactics, like saying they'll involve the local authorities or other law enforcement if you don't comply. Another important thing to remember is that the IRS will never ask for payment by way of wire transfers, prepaid debit cards or gift cards. Instead, they'll direct you to make payments to the United States Treasury. END
 TITLE: How Does the IRS Verify Your Identity? CONTENT: What to Do if You're Already the Victim of Identity Theft\n---------------------------------------------------------\nIdentity theft comes in all shapes and sizes. Overall, tax fraud from identity theft is not as common as other types of fraud, such as unauthorized credit card charges or someone acquiring new credit with your identity. No matter the type of fraud you've fallen victim to, however, it's important to take immediate steps to address it.\nIf you discover you've been victimized since filing your last tax return, you'll want to notify the appropriate parties to help clear up issues and minimize future headaches. You might want to:\n*   Alert the IRS immediately using this form as it can help put a stop to future tax ID fraud.\n*   File a report with the Federal Trade Commission (FTC).\n*   Contact any relevant government agencies if you also pay state and local taxes.\n*   File a crime report with local law enforcement. This isn't required by the IRS or FTC, but it could be good to have a copy of your report on hand when clearing your name. Your report could also aid in the law enforcement investigation and prosecution of whoever stole your identity. END
 TITLE: How Does the IRS Verify Your Identity? CONTENT: How to Protect Your Identity Going Forward\n------------------------------------------\nTax identity theft underscores just how important it is to keep your personal information safe from prying eyes. If you've been the victim of this type of fraud, consider taking the following steps:\n*   **Safeguard your credit.** If identity thieves have their hands on your private information, a fraud alert or credit freeze can help protect you from further damage. A credit freeze essentially blocks potential new creditors from pulling your credit report—and, in turn, approving new accounts in your name—until you unfreeze your report. Alternatively, a fraud alert asks lenders to verify your identity before issuing a new loan or credit card in your name.\n*   **Protect your private information.** From your SSN to your digital banking passwords, keeping sensitive information safe is critical. When shopping online, avoid public Wi-Fi networks, which may have been compromised by hackers. If you must use a public Wi-Fi for anything sensitive, using a virtual private network (VPN) can make it harder for fraudsters to steal your information. For all your online accounts, use a password that's secure and unique—a password manager can help you keep track.\n*   **Stay vigilant of scams.** Be wary of any phone calls or emails that request personal information. If you're questioning their legitimacy, reach out to the organization directly to verify that the correspondence is real. END
 TITLE: How Can Medical Identity Theft Occur? CONTENT: Types of Medical Identity Theft\n-------------------------------\nMedical identity theft can fall under different categories depending on who uses your information to perpetuate the fraud.\n*   **Outsider fraud** describes a scenario in which someone else uses your personal and medical information without your knowledge. The fraudster may have stolen your information themselves or bought it from someone who did.\n*   **Insider fraud** is when someone within the health care system fraudulently uses a patient's information. For example, a doctor who adds a false diagnosis to your medical record and then bills your insurance provider for the \"treatment.\"\n*   **Friendly fraud** is when you knowingly allow someone else, such as a friend or family member, to fraudulently use your information.\nWhile you never want to fall victim to any type of identity theft, medical identity theft can be particularly troublesome. Once someone has your personal and health insurance information, they may be able to:\n*   Get a medical procedure or test in your name.\n*   Use your information to buy prescription drugs and medical equipment.\n*   Make fraudulent insurance claims.\nThese can lead to the costly and time-consuming task of proving you were the victim of fraud and fixing your financial, credit, health and possibly criminal records. Even friendly fraud, which might not have financial repercussions, could be dangerous.\nIncorrect medical and insurance records can also lead to life-threatening mistakes and delays. A doctor may give (or withhold) medications or treatments based on a medical record that contains fraudulent information. Your insurance company could also deny necessary treatments or medications due to the fraudulently filed claims. END
 TITLE: How Can Medical Identity Theft Occur? CONTENT: How to Prevent Medical Identity Theft\n-------------------------------------\nIn many ways, protecting yourself from medical identity theft can be similar to what you might already be doing to reduce the risk of other forms of identity theft.\nFor example, creating a unique and secure password for all your accounts can help minimize the fallout of a data breach at one company. Additionally, monitor your credit for hard inquiries (an indication that someone has applied for credit), new accounts and collections accounts that could be an indication your personal information has been compromised.\nSteps you can take to prevent medical identity theft, in particular, include:\n*   Look for notices from health care companies, including your insurance, doctor, pharmacies and clinics.\n*   If you lose your health insurance card, request a new card with a different number.\n*   Shred or safely dispose of health records and documents that have your personal information.\n*   Never share your personal information, including health plan information, over the phone or by email if you didn't initiate the conversation.\n*   Don't share your information with people and companies that promise to give you free products or services.\n*   If you submit your information online, make sure the website has \"HTTPS\" at the beginning of the URL (sometimes indicated by a closed-lock symbol or the word \"secure\").\n*   Create your patient portal account if your health care provider offers an online service.\n*   Keep your computer's antivirus and anti-malware software updated.\n*   Review your medical records annually.\n*   Hold on to copies of old medical records and other documents because they may be needed to fix your record if you're the victim of medical identity theft. END
 TITLE: How Can Medical Identity Theft Occur? CONTENT: What to Do if You Think You're a Victim of Medical Identity Theft\n-----------------------------------------------------------------\nEven with every precaution in place, your information could still be compromised due to a data breach. You could also be the victim of insider fraud, or a fraudster may get hold of your information in spite of the safety measures.\nSigns of medical identity theft can include getting a bill or an explanation of benefits (EOBs) from your insurance company for a service or product you didn't receive, or noticing an error in your medical records or credit report.\nIf you know or suspect you've been the victim of medical identity theft:\n*   Submit a report to the Federal Trade Commission (FTC), which will create a recovery plan and give you an FTC Identity Theft Report. If you create an account, the FTC can auto-fill forms and track your progress online. You might also want to file a crime report with your local law enforcement.\n*   Look into adding a fraud alert or fraud alert or credit freeze. Doing so can help keep fraudsters from using your information to open new credit accounts.\n*   Request copies of your insurance EOB statements and medical records to review them for errors.\n*   If you find something amiss, contact the appropriate provider to inquire or request that they update your records.\nCleaning up after an incident of medical identity theft can be time-consuming, but quickly taking action can also help prevent further issues. END
 TITLE: How Can Medical Identity Theft Occur? CONTENT: Get Help Monitoring and Correcting Your Identity\n------------------------------------------------\nIdentity theft protection services can monitor multiple databases, including your credit reports, public records and the dark web, for your personal information. The early warning can help you take steps to secure your identity and let you know that you need to be extra vigilant about checking your records.\nIf fraudsters are able to use your stolen personal information, some services can also help you with the recovery process and cost. The Experian IdentityWorksSM Premium program, for example, includes up to $1 million in identity theft insurance and can help you with costs related to child care, lost wages and legal consultation. You'll also be connected with a U.S.-based fraud resolution specialist. The extra assistance this program provides can save you time and defer some of the costs that can result from identity theft. END
 TITLE: Should You File a Police Report After Identity Theft? CONTENT: When Do I Need to Report Identity Theft to the Police?\n------------------------------------------------------\nThere are many different forms of fraud and identity theft, and some warrant a police report more than others. Local law enforcement may be somewhat limited when investigating an internet crime or large data breach, and a police report may not be required for certain types of identity-related crimes. You should file a police report in the following situations:\n*   You know who committed the identity theft.\n*   You can provide specific information that may be able to help the police investigation.\n*   Your identity was used fraudulently in an encounter with the police.\n*   A creditor or other entity requires a police report as part of their investigation.\nWhile not always required, filing a police report can potentially help the authorities catch and stop the person or group committing the crimes. Additionally, some creditors or companies may require you to obtain a police report in order to help you fix the damage. END
 TITLE: Should You File a Police Report After Identity Theft? CONTENT: Steps to Take if You're a Victim of identity Theft\n--------------------------------------------------\nIf you believe you're a victim of identity theft, follow these steps:\n1.  Call the impacted businesses. If you know how your information was used, call the relevant financial institutions or companies and ask for the fraud department. Inform them that your identity was stolen and ask that any accounts be closed or frozen.\n2.  Check your credit report and request a fraud alert. Review your credit report to look for any new accounts or transactions you don't recognize. Additionally, place a free one-year fraud alert on your credit report so others cannot open a credit account in your name. Fraud alerts require creditors to take extra steps to verify your identity. Once you place a fraud alert with one of the three national consumer credit bureaus (Experian, TransUnion or Equifax), the other two will be notified and will also add a fraud alert. Another option is to request a credit freeze, which you'll have to lift if you want to apply for credit; you must place credit freezes with each bureau separately. You can check your credit reports for free with all three bureaus at AnnualCreditReport.com.\n3.  Report it to the Federal Trade Commission. Visit IdentityTheft.gov or call 877-438-4338 to report the theft (even if you don't file a police report). Once you provide details of the identity theft, you'll receive an identity theft report, a recovery plan and assistance with the recovery steps.\n4.  File a police report. If you decide to file a police report or a creditor requires you to do so as part of their investigation, bring the following items with you to your local police office:\n*   A copy of your FTC report\n*   A valid government-issued ID with a photo\n*   Proof of address (a utility bill, credit card statement or similar)\n*   Any evidence of the ID theft\n6.  Change your passwords. Update any logins or PINs on any impacted accounts. Creating strong passwords is one way to help avoid identity theft in the future.\n7.  Have fraudulent charges removed from your accounts. Contact your creditors and request to have charges removed.\n8.  Dispute any inaccurate information on your credit reports. If you believe fraudulent information remains on your reports after contacting creditors, dispute that information with the credit bureaus. If the credit bureau can confirm your claim, the information will be removed from your report.\nYou can also visit Experian's Identity Theft Victim Assistance page for more help. END
 TITLE: Should You File a Police Report After Identity Theft? CONTENT: How Can Identity Theft Affect My Credit?\n----------------------------------------\nBeyond financial loss, another harmful consequence of identity theft is damage to your credit. This can happen if the fraudster uses your Social Security number or other information to open credit cards and loans in your name. If they rack up bills and don't pay them, your credit report will reflect the missed payments and your credit score will suffer. This is even more damaging if the accounts go into collections.\nOnce the fraud is reported and any fraudulent information or accounts removed from your credit report, your credit can quickly rebound. If you need to apply for any new forms of credit while the investigation is ongoing, however, it could be challenging. If possible, wait until the ID theft issues are resolved before applying.\nIdentity theft can have plenty of other unexpected costs, such as emotional and physical distress, criminal records in your name and significant amounts of time trying to clean up the mess. Again, most of the damage can be fixed—but be prepared for a potentially lengthy process. END
 TITLE: Should You File a Police Report After Identity Theft? CONTENT: Stay Alert After Identity Theft\n-------------------------------\nOnce your acute identity theft crisis is resolved, it's a good idea to keep an eye on your credit report over the coming months. Free credit monitoring is one of the easiest ways to stay vigilant and avoid future identity theft. It provides you with alerts about new inquiries and accounts, notifies you of suspicious activity, and makes it simple to dispute any potential inaccuracies. END
 TITLE: Should I Encrypt Sensitive Files on My Computer? CONTENT: How Does Encryption Work?\n-------------------------\nEncryption is the process of scrambling information so it can't be read without a key. As the owner of the data, you'll have the ability to unscramble the data by using a password, biometric information or something else.\nEncryption turns a normally readable message that you want to save or send, broadly referred to as plaintext, into an encrypted message, or ciphertext. The key decrypts the ciphertext back into plaintext.\nA simple example of encryption is a method you may have encountered before in a spy novel or war drama. Let's say you have a message where the plaintext is \"hello.\" The message gets encrypted by shifting each letter in the message over one space in the alphabet, so that the encrypted message (or ciphertext) appears as \"ifmmp.\" This is called a shift cipher, also known as Caesar's cipher.\nThe key needed to decrypt the message would simply be the number times and the direction in which the letters in the message were shifted. In the above example, you would just need to know or figure out that the letters in the message were shifted one time, forward in the alphabet. Someone who intercepts the message won't immediately know what it says, but a recipient with the correct key can quickly decrypt the ciphertext.\nOf course, many people, and certainly today's computers, could figure out how to decrypt a message that's encrypted with a simple letter-shift cipher. Astronomically more complex methods are used to encrypt computer files and information that's sent online, but the same general concept gets applied. END
 TITLE: Should I Encrypt Sensitive Files on My Computer? CONTENT: What Are the Benefits of Encrypting Sensitive Files on Your Computer?\n---------------------------------------------------------------------\nEncrypting sensitive files on your computer can help keep the information within those files private. Requiring a login password to open your computer might be a helpful step to keep a roommate from snooping, but files can be copied from your hard drive in other ways. Or, someone may be able to get remote access to your computer without you realizing it.\nIf your files are encrypted, people without the key won't be able to open or use the information they've stolen. Additionally, your employer may require you to encrypt files on your computer if you're working from home, or if you work with companies that share private information with you.\nThere are drawbacks as well. For example, once your information is encrypted, it will be nearly impossible to decrypt without the key. Which means you might lose access to your own files if you forget your password or otherwise lose access to the method used to unlock them. And, if the password you use to access your encrypted files isn't very strong, that may be a weak link even if the encryption itself is strong.\nEven with all this in mind, encrypting sensitive files is often worth your effort, particularly because it's not necessarily difficult to do. END
 TITLE: Should I Encrypt Sensitive Files on My Computer? CONTENT: How to Encrypt Files on Your Computer\n-------------------------------------\nThere are many ways to encrypt files on your computer, including a variety of free options. But first, you need to decide which files you want to encrypt.\nIf you don't keep a lot of sensitive information on your computer, you may want to use a program that allows you to encrypt individual files and folders. As a general rule of thumb, encrypt any files that have personally identifiable information, or have information or images you wouldn't want published online for anyone to see.\nAnother option is to encrypt your entire hard drive, or a large part of your hard drive. While this can seem like an easier solution, remember the downside—a lost password means you lose all your files. If you do decide to encrypt your entire hard drive, you may want to regularly back up the information on an unencrypted, but securely stored, external hard drive (ideally one that's not hooked up to an internet-connected device). END
 TITLE: Should I Encrypt Sensitive Files on My Computer? CONTENT: Protect Your Identity and Credit\n--------------------------------\nEncrypting the files, folders or entire hard drive on your computer can be an important step in keeping your personal and business information secure. In turn, this can help protect you from identity theft. But it's only one of the many steps you may want to take.\nFor example, you'll want to use strong, unique passwords on all your online accounts, as those may be compromised by a data breach. Ideally, you'll also turn on two-factor authentication for your most important accounts.\nIf you think some of your accounts may already be compromised, you can run a free dark web scan. Additionally, you could sign up for an identity theft protection service, such as Experian IdentityWorks℠. The service can help you monitor your credit reports, public records and the web for your personal information and suspicious changes. And, if something does happen, you'll be supported with a U.S.-based fraud resolution team and up to $1 million in identity theft insurance. END
 TITLE: Unemployment Scams to Watch Out For CONTENT: This Identity Theft Method Can Be Difficult to Detect\n-----------------------------------------------------\nCollecting unemployment benefits by impersonating workers is a new spin on the crime of identity theft. Historically, ID thieves have used personal information (names, addresses, Social Security numbers and more) to take out loans or open new credit card accounts in victims' names. These bogus loans and credit accounts appear on your credit report and can be spotted relatively quickly using credit monitoring services. Unemployment scams, on the other hand, are harder to detect. According to the FBI, many victims discover them only after one of the following events occurs:\n*   They apply for unemployment and learn there's already an open claim in their name.\n*   They receive a form 1099-G listing unemployment income that's subject to federal income tax.\n*   They receive notice from their state unemployment office confirming that a claim has been filed.\n*   They receive notice from their employer that someone has filed for unemployment in their name.\nUnemployment scammers typically arrange for benefits payments to be deposited into bank accounts they've set up. If they do so, unless you file for unemployment yourself and uncover the conflict, it can be extremely difficult to detect the activity.\nMore rarely, claims filed by scammers result in you receiving an unexpected benefits check, direct deposit or debit card (whichever payment method is preferred in your state). In that scenario, the scammer may contact you by phone or email, posing as your state labor department and instructing you to \"correct the error\" by transferring funds to them. Do not respond to any inbound requests to correct surprise unemployment payments; instead, call your state's unemployment office to report the incorrect payment. Follow their instructions for making any repayments and make sure they look into the possibility of unauthorized filing activity in your name.\nIf you've experienced unemployment benefit fraud, it could mean your personal information has been exposed and is being used in other ways. Consider checking for other forms of identity theft as well. END
 TITLE: Unemployment Scams to Watch Out For CONTENT: How Fraudsters Exploit the Rise in Unemployment\n-----------------------------------------------\nThe credentials used by unemployment scammers are basically the same ones cybercriminals target through a host of tried-and-true techniques aimed at fooling victims into giving up their personal information. Data obtained through social manipulation, theft or from another fraudster can be used to file unemployment claims, but the FBI reports that thieves have also come up with some fresh approaches that exploit the rise in unemployment, such as:\n*   **Email or phone solicitations** concerning your unemployment forms when you haven't applied for unemployment benefits. Once you've filed an unemployment claim, it's possible you'll receive follow-up questions about information you've submitted, but if you receive a \"follow-up\" when you haven't filed, there are two potential problems:\n1.  1.  The follow-up is from a legitimate government agency, responding to a claim someone else has filed a claim in your name; or\n    2.  The inquiry is from a scammer trying to get you to give up information they'd need to file a bogus unemployment claim.\n*   **Services that purport to help you** file for unemployment. Filing for unemployment benefits is something you must do individually, and if you need assistance doing so, you should contact your local unemployment office. Companies that claim to help with the process and possibly charge fees to do so are simply after your money and\/or your personal information. They won't do anything for you that you couldn't do yourself for free.\n*   **Bogus websites or social media accounts** that resemble those of unemployment agencies. Links to these bogus outlets may be shared via legitimate-looking emails or in the form of official-looking memes or image files. Double-check all URLs for appropriate \".gov\" extensions. If you do wish to contact a specific agency, directly visit your state or municipality's main government homepage, rather than clicking stray links.\n*   **Unauthorized transactions** on your bank or credit card statements attributed to unemployment agencies, services or benefits. END
 TITLE: Unemployment Scams to Watch Out For CONTENT: What to Do if You're a Victim of Unemployment Fraud\n---------------------------------------------------\nIf you discover that a bogus unemployment claim has been filed in your name, do the following immediately:\n1.  Notify your local unemployment agency. If the fraud comes to light as you apply for unemployment, the agency will already be notified. If your employer notifies you of a bogus claim, enlist your human resources department to assist with pursuing the false claim—but make sure you also notify the unemployment agency yourself.\n2.  Inform the IRS by filing an Identity Theft Affidavit (IRS Form 14039) with the IRS or through the Federal Trade Commission's identity theft website, IdentityTheft.gov, where you can also find information on cleaning up the damage identity theft can cause.\n3.  If you suspect unemployment fraud is connected to email or bogus websites or social media accounts, file a report at the FBI Internet Crime Complaint Center. END
 TITLE: Unemployment Scams to Watch Out For CONTENT: Can an Unemployment Scam Affect Your Credit?\n--------------------------------------------\nNeither your income nor its source—including unemployment benefits issued to you or those collected by criminals in your name—appear on your credit reports, so it cannot influence your credit score.\nThere's a major way an unemployment benefits scam can affect your credit indirectly, however: If you apply for unemployment and criminals have already filed a claim in your name, there will likely be a delay in your ability to collect your benefits. (Staff at your local unemployment office—likely overworked with the high volume of COVID-19-related claims—will need to investigate, close the bogus account, and so on.) You'll eventually get the benefits to which you're entitled, but if you miss any debt payments before that happens, that could have a significant negative effect on your credit score.\nAlso note that criminals who have enough of your personal information to file a false unemployment claim likely have the credentials they'd need to open new credit accounts in the future. It's therefore critical to continue checking your credit reports for unexplained activity (reports of credit inquiries you can't identify, new accounts you didn't open, and so on). It's also worth considering using a credit monitoring service (such as the one Experian offers for free) and taking other steps such as placing a fraud alert on your credit report. A fraud alert will ask creditors to confirm your identity before processing loan applications made in your name. END
 TITLE: How to Handle Identity Theft With the IRS CONTENT: What Is Tax Identity Theft?\n---------------------------\nThis form of tax fraud occurs when someone uses your Social Security number (SSN) and other personal information to file a fraudulent tax return in your name. The fraudster's goal is to obtain a tax refund payment before you or anyone else notices.\nYou may not find out that you've been victimized until you go to file your return only to get an error saying it's a duplicate. The IRS won't let you re-file if someone has already used your SSN to file a return, and you'll need to work with the agency to make sure your taxes are legitimately squared away.\nOther potential signs that someone has stolen your information to commit tax fraud include:\n*   The IRS sent you a letter about a suspicious tax return.\n*   You received a tax transcript in the mail, but you didn't request one.\n*   You got a notice that someone accessed your IRS online account or someone created a new account in your name.\n*   The IRS shows that you received income from a source you don't recognize.\n*   You received a notice from the agency that you owe additional tax or need to offset an old tax refund you weren't due.\n*   The IRS has sent you a notice of collections for a year for which you didn't file a return.\nWhen you first discover that something is wrong, stay calm and don't take any drastic actions. The IRS has policies in place to protect you from missing out on your tax refund, though it may take a little bit of time to sort things out. END
 TITLE: How to Handle Identity Theft With the IRS CONTENT: What to Do if You're a Victim of Tax Identity Fraud\n---------------------------------------------------\nTo get the IRS to help you resolve the situation and make things right, it's important that you follow the processes the agency has put in place for this scenario. Here are some steps you can take if you've tried to file your return and got an error due to a duplicate SSN.\n*   **File your return.** You still need to meet the filing and payment deadlines the IRS has set, even with fraud involved. If you can't submit your return electronically, file a paper return instead. And if you owe money based on your return, make sure to send the payment.\n*   **Submit an affidavit.** Before you send your paper return, print and fill out Form 14039, Identity Theft Affidavit. You'll need to include this form with your return.\n*   **Wait for a response.** The IRS will notify you within 30 days that it's received your affidavit. In some cases, the response may include a 5071C letter, which gives you instructions on how to verify your identity and prove that you filed your return.\n*   **Get updated.** Once the tax agency begins working on your case, it typically takes 120 to 180 days to resolve it. In some situations, though, it can take longer than that. During the process, the IRS may flag your account, which could protect you from future fraudulent filings. The agency may also review previous returns to make sure they're also in order. Request regular updates throughout the process so you know that things are going smoothly.\nIf you haven't yet filed your tax return but have received a notice or some other communication from the IRS that could indicate fraud, contact the IRS directly as quickly as you can.\nOther Steps to Take After Tax Identity Theft\n--------------------------------------------\nDealing with the IRS is an important first step in this process. But if someone has your SSN and other personally identifiable information, they could also commit fraud in other ways. Here are some other actions you can take to stop the damage:\n*   **File a complaint with the Federal Trade Commission (FTC).** The FTC offers assistance to consumers who have been victims of identity fraud. File a report through IdentityTheft.gov, and you'll receive a recovery plan, including guidance throughout the process.\n*   **Review your credit reports.** If someone has your SSN, they may also try to open fraudulent credit accounts in your name. Visit AnnualCreditReport.com to get a copy of your report from each of the three credit reporting agencies (Experian, TransUnion and Equifax). Then review them to make sure you recognize all of the accounts. If you find one you don't, you can file a dispute with the credit bureaus.\n*   **Request a fraud alert or security freeze on your credit reports.** When you request a fraud alert, creditors will see the notice and try to contact you at the number you provided to verify your identity. In contrast, a security freeze prevents potential new lenders from reviewing your credit reports entirely unless the freeze is lifted. Review the differences between fraud alerts and credit freezes to determine which is the best course of action for you.\n*   **Contact the financial institutions you currently do business with.** If someone has access to your personal information, they may try to gain access to your financial accounts. Reach out to your bank or credit union and credit card companies to notify them that you've been a victim of fraud. Among other things, they may change your account numbers and login information to make it more difficult for fraudsters to take advantage.\nHopefully, the fraud that's been committed in your name is limited to what you've already discovered, but taking these steps can help prevent further problems that can make your life even more stressful.\nHow to Prevent Future Tax Identity Theft\n----------------------------------------\nWhile the IRS is working on addressing your situation, there are other steps you can take to prevent the fraud from happening again:\n*   **Request an IP PIN.** An identity protection personal identification number (IP PIN for short) is a six-digit number you'll receive each December for the current tax year. When you file your return, the IRS will require this number, making it impossible for someone else to do it before you do.\n*   **File your tax return early.** It may be tempting to wait until the last minute to file your tax return, especially if you owe money, but identity thieves may bank on procrastination to file their fraudulent return before you get the chance. And remember, you don't have to pay at the same time you file. You just need to pay by the deadline, which the IRS extended to May 17 this year. Also, if you're due a refund, getting that money sooner rather than later is a plus.\n*   **Protect your tax ID.** Whether you have an SSN or an individual taxpayer identification number (ITIN), it's crucial that you protect it at all costs. Keep your SSN or ITIN card safe at home in a secure location, and avoid giving it to anyone unless it's required and you're certain the company or transaction is legitimate.\n*   **Check your credit often.** Checking your credit report and score is not only a great way to spot fraud, but it can also help you improve your credit by showing you areas you need to address. Credit monitoring can also alert you to any changes in your credit, including possible indications of fraud.\n*   **Browse securely.** If you're on a public Wi-Fi network, such as the ones found in coffee shops and airports, avoid transmitting any personal information during your browsing session. If you have to, use a virtual private network (VPN) to encrypt your data. Also, anytime you're asked to submit private information online, make sure the website you're on is secure and legitimate. Secure websites have an address that begins with HTTPS, and this status may also be denoted in your browser with a closed padlock icon or the word \"secure.\" Secure websites aren't susceptible to eavesdropping from hackers.\nUnfortunately, it's impossible to prevent fraud completely, especially if companies you have accounts with suffer data breaches. However, taking these steps can make it more difficult for thieves to get and use your information nefariously.\nDon't Procrastinate Your Response\n---------------------------------\nTax identity theft can be frightening, especially if taxes are already a point of stress and frustration for you. If you fall victim to a fraudulent tax return, don't delay taking action to address it. The sooner you respond, the sooner the IRS can start their process and the easier it will be to stop other forms of fraud the fraudster may commit. END
 TITLE: How to Handle Identity Theft With the IRS CONTENT: Other Steps to Take After Tax Identity Theft\n--------------------------------------------\nDealing with the IRS is an important first step in this process. But if someone has your SSN and other personally identifiable information, they could also commit fraud in other ways. Here are some other actions you can take to stop the damage:\n*   **File a complaint with the Federal Trade Commission (FTC).** The FTC offers assistance to consumers who have been victims of identity fraud. File a report through IdentityTheft.gov, and you'll receive a recovery plan, including guidance throughout the process.\n*   **Review your credit reports.** If someone has your SSN, they may also try to open fraudulent credit accounts in your name. Visit AnnualCreditReport.com to get a copy of your report from each of the three credit reporting agencies (Experian, TransUnion and Equifax). Then review them to make sure you recognize all of the accounts. If you find one you don't, you can file a dispute with the credit bureaus.\n*   **Request a fraud alert or security freeze on your credit reports.** When you request a fraud alert, creditors will see the notice and try to contact you at the number you provided to verify your identity. In contrast, a security freeze prevents potential new lenders from reviewing your credit reports entirely unless the freeze is lifted. Review the differences between fraud alerts and credit freezes to determine which is the best course of action for you.\n*   **Contact the financial institutions you currently do business with.** If someone has access to your personal information, they may try to gain access to your financial accounts. Reach out to your bank or credit union and credit card companies to notify them that you've been a victim of fraud. Among other things, they may change your account numbers and login information to make it more difficult for fraudsters to take advantage.\nHopefully, the fraud that's been committed in your name is limited to what you've already discovered, but taking these steps can help prevent further problems that can make your life even more stressful. END
 TITLE: How to Handle Identity Theft With the IRS CONTENT: How to Prevent Future Tax Identity Theft\n----------------------------------------\nWhile the IRS is working on addressing your situation, there are other steps you can take to prevent the fraud from happening again:\n*   **Request an IP PIN.** An identity protection personal identification number (IP PIN for short) is a six-digit number you'll receive each December for the current tax year. When you file your return, the IRS will require this number, making it impossible for someone else to do it before you do.\n*   **File your tax return early.** It may be tempting to wait until the last minute to file your tax return, especially if you owe money, but identity thieves may bank on procrastination to file their fraudulent return before you get the chance. And remember, you don't have to pay at the same time you file. You just need to pay by the deadline, which the IRS extended to May 17 this year. Also, if you're due a refund, getting that money sooner rather than later is a plus.\n*   **Protect your tax ID.** Whether you have an SSN or an individual taxpayer identification number (ITIN), it's crucial that you protect it at all costs. Keep your SSN or ITIN card safe at home in a secure location, and avoid giving it to anyone unless it's required and you're certain the company or transaction is legitimate.\n*   **Check your credit often.** Checking your credit report and score is not only a great way to spot fraud, but it can also help you improve your credit by showing you areas you need to address. Credit monitoring can also alert you to any changes in your credit, including possible indications of fraud.\n*   **Browse securely.** If you're on a public Wi-Fi network, such as the ones found in coffee shops and airports, avoid transmitting any personal information during your browsing session. If you have to, use a virtual private network (VPN) to encrypt your data. Also, anytime you're asked to submit private information online, make sure the website you're on is secure and legitimate. Secure websites have an address that begins with HTTPS, and this status may also be denoted in your browser with a closed padlock icon or the word \"secure.\" Secure websites aren't susceptible to eavesdropping from hackers.\nUnfortunately, it's impossible to prevent fraud completely, especially if companies you have accounts with suffer data breaches. However, taking these steps can make it more difficult for thieves to get and use your information nefariously.\nDon't Procrastinate Your Response\n---------------------------------\nTax identity theft can be frightening, especially if taxes are already a point of stress and frustration for you. If you fall victim to a fraudulent tax return, don't delay taking action to address it. The sooner you respond, the sooner the IRS can start their process and the easier it will be to stop other forms of fraud the fraudster may commit. END
 TITLE: How to Handle Identity Theft With the IRS CONTENT: Don't Procrastinate Your Response\n---------------------------------\nTax identity theft can be frightening, especially if taxes are already a point of stress and frustration for you. If you fall victim to a fraudulent tax return, don't delay taking action to address it. The sooner you respond, the sooner the IRS can start their process and the easier it will be to stop other forms of fraud the fraudster may commit. END
 TITLE: Does Credit Card Fraud Affect Your Credit? CONTENT: How Do Credit Card Issuers Help?\n--------------------------------\nOnce you report the fraud, the credit card company may cancel the card and send you a replacement. Or, simply close the account if it was fraudulently opened. The card issuer will also investigate your allegation.\nUnless the credit card company concludes that you authorized the purchases, you generally won't pay for unauthorized transactions because all four major card networks (American Express, Discover, Mastercard and Visa) offer zero-liability protection on fraudulent purchases. Your card issuer may even refund the amount while it conducts its investigation.\nAfter the credit card issuer completes its investigation, it may also update the information it sends to the credit bureaus. As a result, high balances, late payments, accounts you didn't open and other negative information that resulted from the fraud could be taken off your credit report and will no longer affect your credit scores.\nYou can also file a dispute directly with the credit bureaus if you see inaccurate information in your credit reports. But you'll need to send separate disputes to each of the three bureaus that the creditor reports to. END
 TITLE: Does Credit Card Fraud Affect Your Credit? CONTENT: Credit Card Issuers Also Help Prevent Fraud\n-------------------------------------------\nCredit card issuers work to prevent fraud before it happens. They do this by monitoring accounts for unusual transactions, such as abnormal purchases or a purchase that's initiated far from where you normally live or travel. You may have even encountered these types of fraud prevention measures, when a transaction gets blocked and you need to call or text the issuer to unlock your account.\nAdditionally, credit card issuers may offer features and cards with extra security features:\n*   **Contactless cards**: Many major card issuers are offering contactless cards. For example, the Chase Freedom Unlimited® has tap-to-pay built in, and you can add it to digital wallets.\n*   **Virtual card numbers**: To protect yourself when shopping online, see if your card issuer offers virtual card numbers that you can use to pay. Capital One offers this feature for some of their cards, including the Capital One Venture Rewards Credit Card.\n*   **Card lock or freeze**: Being able to quickly freeze and unfreeze your card can help you avoid the hassle of having to cancel and get a replacement when your card goes missing.\nUsing these card features can help keep your card's information secure and prevent a thief from using your card. END
 TITLE: Does Credit Card Fraud Affect Your Credit? CONTENT: What Can You Do to Protect Yourself?\n------------------------------------\nThere are also several ways you can protect yourself from credit card fraud, and get notified so you can quickly act if there's unusual activity in your account.\n*   **Set up email, text or app notifications** for credit card transactions. You may be able to customize the notifications based on transaction amounts or whether a transaction occurred when the card wasn't present.\n*   **Use contactless payment** when available and check card terminals for skimming devices.\n*   **Track all your accounts** using budgeting software or Experian's Personal Finances tool, which lets you securely connect and sync financial accounts. You can then easily track account activity, which can be especially helpful for monitoring cards you don't frequently use.\n*   **Sign up for an identity monitoring service,** such as Experian IdentityWorksSM, which can alert you if your personal information appears online, including on the dark web. It also comes with identity theft insurance, which can help pay for various expenses resulting from identity theft, including out-of-pocket costs, lost wages and legal fees.\n*   **Add a fraud alert to your credit reports.** This lets lenders know that they should take extra steps to verify your identity before opening a new account in your name.\n*   **You could also add a credit lock or freeze** to your credit file, which are more serious measures and typically are most useful if you've repeatedly been a victim of identity theft. If you do so, you'll also need to take an extra step to unlock or thaw your report before applying for credit.\nMonitor Your Credit for Unexpected Changes\n------------------------------------------\nWhile you can take precautions to help prevent credit card fraud, some situations might be outside your control. Free credit monitoring from Experian comes with automatic notifications about new inquiries, accounts or updated personal information, all of which may indicate someone is trying to use (or already used) your information to open an account. You can also use your Experian account to submit disputes online, and learn what steps you can take to improve your credit in general. END
 TITLE: Does Credit Card Fraud Affect Your Credit? CONTENT: Monitor Your Credit for Unexpected Changes\n------------------------------------------\nWhile you can take precautions to help prevent credit card fraud, some situations might be outside your control. Free credit monitoring from Experian comes with automatic notifications about new inquiries, accounts or updated personal information, all of which may indicate someone is trying to use (or already used) your information to open an account. You can also use your Experian account to submit disputes online, and learn what steps you can take to improve your credit in general. END
 TITLE: Coronavirus Vaccine Scams to Watch Out For CONTENT: Scammers don't need to reinvent the wheel to create a new scam. Often, they combine known methods for getting people to hand over their money or personal information with a twist based on what's going on in the world. On one hand, this could make the scams easier to identify if you're in the know. However, these methods are repeatedly used because they work.\nScams can also take different forms. You may be asked to make a payment, either directly or by buying and sending someone a gift card or money order. Or, the scammer may be after your personal information, such as your Social Security number, mother's maiden name or health insurance identification number. They could then use your information to commit various types of identity fraud, or sell it to fraudsters.\nWith all this in mind, here are some of the most common COVID-19 vaccine scams:\n*   **Offers to buy the vaccine or get priority access**: You may receive offers to purchase the vaccine or pay to put yourself on a shortlist—these are not legitimate. You can't buy the vaccine yourself, you won't need to pay any out-of-pocket expenses to receive a COVID-19 vaccine from a legitimate distributor, and you can't pay to get priority access.\n*   **Fake vaccines and cures**: Scammers may offer products for sale that they claim will cure COVID-19 or act as a vaccine. You can't get any of the tested and approved vaccines shipped to your home.\n*   **Requests for personal or financial information**: Vaccine distribution sites, insurance providers, pharmacies, vaccine center employees and contact tracers shouldn't ask for your Social Security number, Medicare number or any financial account numbers. In general, be wary of any phone calls, text messages, emails, letters, advertisements, direct messages or in-person solicitors that claim they can help get you a vaccine.\n*   **Impersonating Medicare**: Medicare isn't calling to offer coronavirus products or services.\nThe list of COVID-19 vaccine scams may grow over time. And, some scams might not be as prevalent. If you have questions about when and where you can get the vaccine, look for updates on the FDA's website, on your state's health department website and from your health care provider. END
 TITLE: Coronavirus Vaccine Scams to Watch Out For CONTENT: Additional Ways to Avoid Scams and Identity Theft\n-------------------------------------------------\nWhile coronavirus and vaccine scams may make headlines right now, that doesn't mean other types of scams have ceased. Fortunately, a few basic practices can offer protection against many common scams and identity theft attempts.\n*   **Verify before trusting.** Scammers can \"spoof\" phone numbers and email addresses to make it look like a call or message is coming from a trusted source. If you're unsure, it's always best to look up the contact information for the organization the person claims to represent and initiate a call or message yourself.\n*   **Don't share personal information.** Most organizations will never ask for your personal information over the phone, on social media or by text message.\n*   **Ignore robocalls.** The never-ending robocalls are certainly annoying, and it's better to ignore them rather than respond to a message. Don't press a number on your phone or respond to messages; just hang up.\n*   **Be cautious when you're asked for a specific type of payment.** Scammers who are after your money rather than your personal information may ask that you send them money by wire transfer, money order or gift card.\n*   **Don't carry important personal information with you.** Keep your Social Security card, birth certificate and passport secure and at home, and make sure your phone automatically locks.\n*   **Safeguard your credit.** If you worry your identity has been compromised, adding a credit freeze or lock or a fraud alert to your credit reports can help keep identity thieves from opening a new account in your name.\n*   **Secure your online accounts.** Using a unique password for each online account can keep one data breach from impacting all your accounts. You can use a password manager to create and store strong passwords for your accounts.\nMonitor and Protect Your Identity\n---------------------------------\nAvoiding scams is always best, since if you do fall victim and wind up sending someone money or purchasing a fake vaccine, you likely won't be able to recoup your costs. Additionally, you want to beware of thieves getting your personal and medical information, some of which may already be compromised due to a company's data breach.\nMonitoring your credit for an unexpected change, such as a new account you didn't open, can give you a headstart to shutting down identity theft if it happens. Signing up for free Experian credit report monitoring can help. More robust identity theft protection services, such as Experian IdentityWorksSM, may require a subscription. However, they often come with wider-reaching monitoring and insurance protections that can save you time and money if your identity is compromised. END
 TITLE: Coronavirus Vaccine Scams to Watch Out For CONTENT: Monitor and Protect Your Identity\n---------------------------------\nAvoiding scams is always best, since if you do fall victim and wind up sending someone money or purchasing a fake vaccine, you likely won't be able to recoup your costs. Additionally, you want to beware of thieves getting your personal and medical information, some of which may already be compromised due to a company's data breach.\nMonitoring your credit for an unexpected change, such as a new account you didn't open, can give you a headstart to shutting down identity theft if it happens. Signing up for free Experian credit report monitoring can help. More robust identity theft protection services, such as Experian IdentityWorksSM, may require a subscription. However, they often come with wider-reaching monitoring and insurance protections that can save you time and money if your identity is compromised. END
 TITLE: How Common Is Identity Theft? CONTENT: What Are the Most Common Types of Identity Theft?\n-------------------------------------------------\nAlthough there are many types of identity theft, most fall into these main categories:\n*   **Unauthorized credit and debit card use**: Thieves use your card credentials to make unauthorized purchases.\n*   **Account takeover**: Here, fraudsters access your account information and use it to change account details, make purchases or withdraw funds. Targets include checking and savings accounts, but also accounts linked to credit cards, mobile phones, investments—the list is long.\n*   **Opening credit accounts or loans**: This is when your personal identifying information is used to open credit card or loan accounts. The credit accounts are linked to your identity, and when the fraudsters ultimately default, it damages your credit in the process. If the account is disputed and removed from your credit reports, the credit score damage should go away.\n*   **Government, identification, job or tax fraud**: Fraudsters use your identity to receive government benefits, generate fake identification, offer documentation to employers or file fraudulent taxes (to get a refund). Government document and benefit fraud saw an explosion in 2020—up 1,400% over the prior year, according to FTC data—most likely due to a rise in COVID-19-related fraud.\nThe following chart compares the number of identity theft reports by category the FTC received in the Q3 2020 with the same quarter in 2019. Overall, the FTC received more than 418,000 identity theft reports during the first three quarters of 2020, almost double the roughly 220,000 reports they saw during the same period in 2019. END
 TITLE: How Common Is Identity Theft? CONTENT: How Does Identity Theft Happen?\n-------------------------------\nIdentity theft can come from any number of sources. Common causes of identity theft include:\n*   Public Wi-Fi networks.\n*   Discarded or stolen documents containing personal identifying information.\n*   Data breaches affecting merchants, government agencies, health care companies and other large organizations.\n*   Lost or stolen credit or debit cards.\n*   Social engineering scams that trick consumers into providing card credentials or other private information.\nIn 2020, the COVID-19 pandemic may have helped fuel a rise in identity theft. A flurry of COVID-19 scams have popped up that attempt to rob consumers of their stimulus money or encourage them to enter information to access fake testing services. On a broader scale, COVID-19 restrictions have driven many Americans online. Whether for online delivery services or curbside pickup, streaming entertainment or person-to-person payment apps, online and mobile transactions have skyrocketed—increasing everyone's exposure to being hacked. END
 TITLE: How Common Is Identity Theft? CONTENT: How Can Identity Theft Affect You and Your Finances?\n----------------------------------------------------\nAlthough much of the financial damage from identity theft can be dealt with by reporting the fraud and filing claims with your financial institutions, Javelin nevertheless reports that consumers paid $3.5 billion out-of-pocket for costs related to identity theft. Among the possible reasons for this: fraudulent charges that are reported too late or accounts that don't assume liability for identity fraud. Identity theft insurance can help you defray some of this cost.\nDetecting and reporting identity theft takes vigilance and time. So even if fraudulent charges on your account are eventually reversed, you'll need to invest time and effort in consistently monitoring your accounts for suspicious activity. You may also want to monitor your credit, to make sure fraudsters aren't opening new accounts in your name. If someone has given your Social Security number to an employer, you may have to prove to the IRS that your identity was stolen. The same goes if a fake tax return was filed—or COVID-19 stimulus money paid out—using your information. Undoing the effects of complex identity theft can take months or even years.\nThere may be emotional costs as well. The Identity Theft Resource Center surveyed consumers who experienced identity crime and found that 77% had increased stress levels and 55% experienced fatigue or decreased energy. END
 TITLE: How Common Is Identity Theft? CONTENT: How to Prevent Identity Theft\n-----------------------------\nIt's nearly impossible to avoid the risk of identity theft completely. Even when you are meticulous, a merchant or organization you do business with can suffer a security breach and expose your information. That said, you can take proactive steps to reduce the chances you'll be hacked by following best practices:\n*   **Monitor your accounts and credit.** Stay alert to all activity on your bank and card accounts. Consider free credit monitoring, which provides you with current credit score and report information and can send alerts when new credit inquiries and accounts, changes or suspicious activity are detected.\n*   **Use an encrypted internet connection and stay off public Wi-Fi.** Better still, look into getting a VPN, which will help to keep your information safe from hackers.\n*   **Be mindful about online activity.** Some of the additional exposure people have been seeing in recent months comes from ramped up online activity. Whenever you download an app, store payment information on a company's website or share personal information online, you increase your risk of identity theft. You don't have to go dark; just take it easy.\n*   **Use complex, unique passwords.** Symbols, numbers and letters in passwords increase their security. Also, make sure they aren't easy to guess, and don't use the same password on several sites.\n*   **Mind your mail and discarded documents.** Shred any documents containing personal information before throwing them out. Don't leave incoming or outgoing mail where it can be stolen.\nSince identity theft isn't going away anytime soon, you may want to consider identity theft protection. Subscribing to a service like Experian IdentityWorks℠ provides you with identity theft monitoring and alerts, the ability to lock and unlock your credit file, dark web surveillance, fraud resolution support and identity theft insurance to help take some of the sting out of having your identity stolen. END
 TITLE: Is Identity Theft Protection Worth It? CONTENT: Identity theft is when someone steals your personal information and uses it for fraudulent purposes. Fraudsters can do this in various ways, from physically going through documents in the trash to hacking into devices. Or, if your personal information is compromised in a large data breach, it may be sold on the dark web.\nFraudsters can also use your information in different ways. Some may try to open credit cards or loans in your name, running up a balance or taking the money and moving on. Or, in the case of medical identity theft, purchasing procedures or medications in your name.\nVictims of identity theft may experience:\n*   **Credit damage**: Unpaid debts in your name could lead to negative marks being added to your credit history. Fortunately, these can be disputed and fixed if they're the result of fraud.\n*   **Tax bills**: Fraudsters may be able to file tax returns in your name and claim tax refunds, or use your personal information to get a job and not pay taxes, leaving an unpaid tax associated with your identity.\n*   **Mistaken medical records**: Having someone else's medical information mixed with yours can be difficult to fix and potentially dangerous.\n*   **Criminal records**: Additionally, you may have to clear your criminal record if someone used your identity to commit a crime.\nWhile it's possible to recover from identity theft, the process can take a lot of time and money. It can also have repercussions on your quality of life. A 2018 Identity Theft Resource Center survey found that victims of identity theft had trouble sleeping (84.1%); concentrating (63.6%); and most (56.8%) experienced ongoing aches, pains, cramps and stomach issues. END
 TITLE: Is Identity Theft Protection Worth It? CONTENT: What Is Identity Theft Protection?\n----------------------------------\nIdentity theft protection services may offer different benefits depending on the program. Many include credit report monitoring with alerts if there are changes in your reports.\nHowever, identity theft protection should go beyond credit monitoring. For instance, services may also monitor the dark web and various databases, including sex offender registries, court records and payday loan reporting for your personal information.\nAdditionally, some identity theft protection services come with identity theft insurance. The insurance coverage can help pay for costs related to obtaining, amending and correcting your records, including:\n*   Notary fees\n*   Fees for requesting credit and medical reports\n*   Fees for new identification cards and documents\n*   **Lost wages**\n*   Travel\n*   Child or elder care\n*   Certified public accountant fees\n*   Legal fees END
 TITLE: Is Identity Theft Protection Worth It? CONTENT: What Are the Benefits of Identity Theft Protection?\n---------------------------------------------------\nWhile monitoring services are reactive rather than preventative, an early warning system can help you quickly take action and respond to identity theft. As a result, you may be able to lock down your accounts and information, which can prevent widespread or ongoing problems. Ideally, you can catch the fraud before any damage is done.\nFor example, you might get an alert that there's a new hard inquiry in your credit report when someone uses your information to apply for a credit card. You can then contact the card issuer and try to shut down the account before the fraudster receives and uses the card.\nIf your identity is compromised, having support with recovery can ease some of the stress involved. Javelin Strategy and Research's 2019 Identity Fraud Study found that 23% of fraud victims had expenses they were unable to have reimbursed in 2018. With this in mind, a protection program that includes identity theft insurance may provide real monetary benefits as well. END
 TITLE: Is Identity Theft Protection Worth It? CONTENT: How Do I Get Identity Theft Insurance?\n--------------------------------------\nYou can get identity theft insurance from different providers. Some sell it as a stand-alone offering, in conjugation with other insurance policies or as part of a broader identity protection service.\nExperian offers identity theft insurance with all Experian IdentityWorksSM subscriptions.\nDepending on the plan you choose, you may receive up to $500,000 or $1 million in aggregate coverage. In either case, there's no deductible before you receive benefits. However, there are limits for specific types of coverage. For example, lost wage benefits are limited to $1,500 per week for up to five weeks.\nThe Experian IdentityWorksSM plans also include fraud resolution support, which can help guide you through the recovery process if your identity is stolen. And you can use your account to easily lock and unlock your Experian credit file and monitor your FICO® Scores☉ . END
 TITLE: Is Identity Theft Protection Worth It? CONTENT: Other Ways to Protect Your Identity\n-----------------------------------\nYou can also protect your identity by implementing many preventative measures on your own, including:\n*   Monitor your credit reports (Experian offers free credit monitoring).\n*   Freeze your credit reports.\n*   Use strong and unique passwords for your online accounts.\n*   Be careful about who you share your personal information with, including on social media sites and over the phone.\n*   Add a lock to your mailbox.\n*   Shred documents with personal information.\n*   Don't carry your Social Security card in your wallet.\nWhile there's no foolproof way to keep all your personal information secure, being cautious and taking preventative measures is important. END
 TITLE: Is Identity Theft Protection Worth It? CONTENT: Is Identity Protection Worth It?\n--------------------------------\nWith all the above in mind, you can make an informed decision about whether identity theft protection is worth it for you and your family.\nThe most basic Experian IdentityWorksSM Plus plan covers one adult, comes with up to $500,000 in identity theft insurance and costs $99.99 per year when billed annually. There are also plans that extend coverage to up to 10 children and\/or a second adult, and offer higher limits and more benefits.\nEven if you're already taking preventative measures, an identity protection program offers protections you can't put in place on your own. Responding quickly when your information is found on the dark web or in different databases can save you time and money. And having assistance and insurance coverage could make recovering easier and less stressful. END
 TITLE: What Is a VPN and How Can It Protect Me? CONTENT: How Does a VPN Work?\n--------------------\nA VPN creates a secure tunnel for your device, routing your internet traffic through the VPN's server instead of the servers a network's internet service provider would typically use. A user's connection to a VPN is software-based, and the service doesn't require any additional equipment or even much technical knowledge to use.\nA VPN encrypts the data you send and receive between your device and the internet, so if someone manages to intercept it, it'll be unreadable. It also makes it appear that the data is being transmitted from the VPN instead of from your device, adding privacy on top of security. If you're on a public or shared network this extra security is especially important, as you can never be sure who may be monitoring your internet traffic.\nVPNs are commonly used by corporations and other organizations, specifically for employees who work outside the office. Not only does it protect sensitive information, but it can also allow the employee to access the organization's private intranet to access a file server or computer at the office.\nThere are also VPN services designed for consumer use that you can use to protect your personal connection to the internet on a single device. Some services even offer VPN services through browser extensions, though these VPNs only protect you when you're using that browser.\nFinally, you can connect your home Wi-Fi router to the VPN, allowing you to get the same protection for multiple devices at a time, as long as they're connected to the internet via the router. END
 TITLE: What Is a VPN and How Can It Protect Me? CONTENT: Why It's a Good Idea to Use a VPN\n---------------------------------\nA VPN can offer a few different benefits to consumers who are looking for additional security and privacy when they're online:\n*   **Protects your information**: When you're connected to the internet on a public network, others on the network may be able to eavesdrop on your connection, potentially allowing them to gain access to sensitive information, such as personal information, login credentials, bank account details, credit card numbers and more. A VPN will encrypt all traffic to and from your device, making it unreadable for anyone who might manage to see it.\n*   **Protects your privacy**: Because a VPN transmits data as if it's coming from its server rather than your device, any browsing you do while you're using one will be completely private and anonymous.\n*   **Gives you location flexibility**: VPNs often have multiple servers throughout the world. This means that if you're trying to view something that's not available where you are, such as a sporting event in a different country or streaming content that's restricted for certain regions, you can pick a server in the area to gain access to the content. END
 TITLE: What Is a VPN and How Can It Protect Me? CONTENT: Things to Consider Before Getting a VPN\n---------------------------------------\nWhile VPNs can provide some valuable features for consumers, there are some drawbacks to keep in mind:\n*   **Slower internet connection**: The process of encrypting every bit of data you transmit from your device can slow your connection speed. This can be frustrating if the network you're on is already slow.\n*   **They don't always work**: Some websites employ VPN-blocking software in an attempt to stop users from accessing content in a region where they're not located.\n*   **You could lose your connection**: With the most reliable VPN services, you won't have to worry too much about having your connection to the network dropped. But if you're in the middle of browsing and it happens, your internet traffic could be exposed. END
 TITLE: What Is a VPN and How Can It Protect Me? CONTENT: How to Get a VPN\n----------------\nThere are many VPN providers out there, so a quick internet search will give you a long list from which you can choose. While some of these services are free, many charge a monthly or annual fee.\nAt first, a free VPN may be the most appealing because it won't cost you any money. But sometimes you get what you pay for, so it's important to shop around and compare features.\nFor example, some VPNs are better than others at maintaining a fast connection speed without sacrificing security and privacy. Others may have a better track record of getting around anti-VPN software. And if your connection suddenly drops, some VPNs will automatically disconnect you from the internet, so you won't transmit or receive any data on an unsecure connection.\nTake your time to read reviews from cybersecurity experts and consumers to get an idea of what you can expect. Also, think about the specific features you need and focus on services that excel in those areas.\nFinally, consider your budget. While a free VPN may not offer all the features you need, that doesn't mean you have to go with the most expensive one on the market. END
 TITLE: What Is a VPN and How Can It Protect Me? CONTENT: Make Online  and Security a Top Priority\n-----------------------------------------------\nIf you spend any amount of time on public Wi-Fi networks, having a VPN can provide you with the peace of mind that your internet connection and personal information are safe from cybercriminals.\nIf privacy is important to you, a VPN will also help keep your browsing anonymous. And if you're traveling abroad and can't access certain websites and online content that are available at home, you can connect to a server in the desired region, so it looks like you're there.\nIf your privacy and security needs are relatively basic, a free VPN may be all you need. But take some time to compare several options, including features and pricing, to find the best fit for you. END
 TITLE: How Secured Loans Can Help Your Credit CONTENT: What Is a Secured Loan?\n-----------------------\nA secured loan is one that requires you to pledge an asset to act as a guarantee against the money you borrow. It may be cash the lender sets aside in a special deposit account, stocks and other investments, a vehicle or real estate. Whatever you use to back a loan, that security lowers the risk a lender assumes when it lets you borrow the money. In the event the loan goes into default, the lender won't have to take you to court to recoup its losses. Instead, the lender can take the collateral.\nBecause secured loans are less risky for lenders, you can get one even if you haven't developed a positive credit history yet, or if you already have damaged credit.\nIn fact, there is even a type of loan that's meant for people who need to build or rebuild their credit. It's called a credit-builder loan, and usually comes in increments of $300 to $1,000. Credit-builder loans are unique because the lender deposits the loan balance into a savings account instead of giving you the money. You are expected to make fixed payments for a predetermined number of months.The lender reports your activity to the credit credit bureaus (Experian, TransUnion and Equifax). When the loan is satisfied, the lender will give you the total balance, which may include any interest you paid. In that way, credit-builder loans are not only a way to develop good credit, but will help you save money for the future. END
 TITLE: How Secured Loans Can Help Your Credit CONTENT: Are Secured Loans a Good Idea?\n------------------------------\nTo determine if a secured loan is worth exploring, your first step should be to review your income and expenses carefully and make sure the payments are doable. If paying hundreds of dollars every month will be a struggle or cause you to fall behind on essential bills, a credit-builder loan is not wise. But if you can easily afford those payments for the entire life of the loan and always pay on time, the secured loan will work to your advantage.\nThe two most common credit scoring models, FICO® Score☉ and VantageScore, both rank payment history as the most important factor in score calculations. Making on-time secured loan payments will go a long way toward building or rebuilding your credit.\nStill, secured loans are not right for everyone. Exercise even more caution if you've had past difficulties with credit. There may be bad habits that need to be broken, such as charging more than you can afford to repay or not preparing for emergencies. You're taking a great risk if you fall behind on a secured loan, and the last thing you want is for the lender to take your assets and leave you with worse credit than before. END
 TITLE: How Secured Loans Can Help Your Credit CONTENT: Are There Other Options for Building Credit?\n--------------------------------------------\nSecured loans aren't the only method you can use to build or repair credit. There are other options you can use in conjunction with or even instead of them.\n*   **Apply for a low-limit credit card.** A credit card issuer may take a chance on you if the limit is very low. Prove you can handle the account well by paying the balance in full and on time every month, and the issuer may increase the limit.\n*   **Get a secured credit card.** As with a secured loan, you put down collateral on a secured credit card. In this case it's a cash deposit, which in turn will likely become your credit limit. If you don't pay your bill, your card issuer simply keeps some or all of your deposit. Some credit card issuers will return the deposit to you and convert you to an unsecured card after you've made a number of on-time payments.\n*   **Become an authorized user.** If you know someone who has a credit card and treats it right, you could ask to be added to the account as an authorized user. That person's account activity will appear on your credit report, thus helping your own credit history. As an account guest, you won't be liable for the payments or any resulting debt, but should work out spending limits and a reimbursement plan with the primary cardholder.\n*   **Open a loan with someone who has good credit.** Becoming a cosigner with a person who has great credit can help jumpstart your own credit history. Both of you will be equally responsible for the loan, though, so it is essential that the payments are made on time. If they aren't, the lender can pursue both of you for the debt.\n*   **Obtain a student loan.** If you're a college student, positive payment history on federal student loans will help build your credit. Of course, never take out a student loan with the sole purpose of building credit, as there are much more cost-effective ways to do so. Keep making on-time payments to any student loans you already have and you can be rewarded in the long term.\n*   **Take out an auto installment loan.** If you're planning on financing a car, it's possible to obtain an affordable interest rate on an auto loan even without excellent credit. On-time payments on an auto loan will help you build your payment history. With an auto loan, the car itself is the security, so if you don't make your payments, it can be repossessed.\n*   **Participate in a nonprofit lending circle.** Check out nonprofit organizations, such as the Mission Asset Fund, that have stepped up to help low-income people build their credit. They are easy to qualify for and the lenders will report your activity with them to the credit bureaus.\n*   **Put your rent on your reports.** Some for-profit companies will send your regular rent payments to the credit bureaus. There is a fee involved, but it may be worth the cost if you really want lenders to see that you've been making regular payments to your landlord.\nBear in mind that credit scores calculate not just your payment history, but also your credit utilization ratio, which is the amount you owe on your credit cards relative to your total credit limit. A ratio above 30% will hurt your scores, and the lower the ratio, the better. Other credit score factors include the length of time you've used credit and the different types of credit products you carry. So mix it up and treat all the loans and credit cards you have responsibly!\nFinally, you can try Experian Boost™† . By signing up for this free service, you can have your cellphone, utility and other telecom bills listed on your credit report. Those payments will then factor into your Experian credit report and possibly lift your scores.\nOnce you've obtained more attractive credit scores, your borrowing options will expand to include the many premium products that come with low interest rates and, for credit cards, valuable rewards. END
 TITLE: How Can Cell Phone Bills Help Build Credit? CONTENT: How to Improve Your Credit Score With Your Cell Phone Bill\n----------------------------------------------------------\nCredit scores, such as the FICO® Score☉ , take all the financial information listed on your credit reports and plug it into mathematical models designed to predict credit risk. The FICO® Score ranges from 300 to 850, and a score of 700 or above is considered good to excellent. On paper, reaching a high score shouldn't be complicated. Just pay all your credit accounts on time, maintain a low debt load (especially in relation to credit lines), and keep credit applications to a minimum.\nThe problem for some is getting all that data on there in the first place. You need creditors such as banks, mortgage companies, credit unions, and credit card issuers to send the credit reporting agencies information about your activity. But if you don't have many of those accounts on your reports, you may face the Catch-22 of not qualifying for credit because you don't have much credit. Now you can add in a type of account that previously had not been part of the equation: your cell phone.\nBy registering with Experian Boost™† , you can build your credit history by having your cell phone account listed on your credit report. Once you add the account, your on-time payments will be factored into your FICO score. Late payments, which can drop a credit score fast, won't be included as long as the account doesn't go so delinquent that you default and the debt is sent to a collection agency. (You can request that an account be removed from your Boost file at any time.) And that's not all. You can even add utility accounts, such as your gas and electric bills, as well as other telecom bills, such as cable or satellite, to Experian Boost. Those payments will then also be factored into your credit score. END
 TITLE: How Can Cell Phone Bills Help Build Credit? CONTENT: Why It's Important to Build Credit\n----------------------------------\nAdding a cell phone and other non-traditional accounts to your credit reports can make sense if you don't have much on your reports. This is known as having a thin credit file, which typically consists of four or fewer accounts. It's hardly a unique situation. About 26 million Americans have no data on their credit reports, while 62 million Americans have too little. Without information on your reports, you're a mystery to lenders and other businesses. Because the past may be a predictor of the future, a thin credit file makes you an automatic credit risk to lenders.\nOn the other hand, a thick credit history and a high credit score will help you in a variety of ways. For example, you can more easily:\n*   **Purchase a home**. Your credit scores are the most important factor to a mortgage lender, so if yours are too low, you will likely have a hard time getting a home loan or face prohibitive interest rates.\n*   **Buy a car**. Those ultra-low-interest financing deals—including 0% APR offers—are usually only available to people with excellent credit scores.\n*   **Obtain personal and business loans**. If you want to borrow money to pay for personal expenses or to launch your dream business, your credit scores need to be in good shape.\n*   **Qualify for premium credit cards**. Many credit cards offer valuable rewards programs, but they typically require good to excellent credit scores.\n*   **Rent an apartment**. Landlords often depend on credit reports and scores to determine how financially responsible a tenant you might be. If yours are unimpressive, your application may be rejected.\n*   **Save on car insurance**. No one wants to pay more for car insurance than necessary. If you have good scores, you may be eligible for discounted premiums.\n*   **Keep the initial outlay on utility costs low**. With a decent credit score you won't have to submit a security deposit to start a utility account; but if yours are poor or nonexistent, it may be required.\nIn short, a high credit score helps you keep costs down and opportunities open. So if you weren't inspired to join the 700+ club before, you should be now. END
 TITLE: How Can Cell Phone Bills Help Build Credit? CONTENT: Building Credit Beyond Cell Phone Bills\n---------------------------------------\nAs your cell phone payments work to your credit scoring advantage with Experian Boost, consider additional methods to hike up those numbers. Some effective start-up ways to build your credit are:\n**Open a secured credit card**. These cards work the same as unsecured credit cards, but to open a secured credit card, you offer a cash deposit which typically equals the credit line. Pay the bill on time and in full and the issuer will send all that fabulous activity to your credit reports.\n**Try a retail credit card**. Some department and big box scores have less restrictive credit requirements than major credit card companies, so getting an unsecured retail credit card and using it responsibly will push your scores upwards. Be sure to pay off your balances every month, as retail cards often carry high interest rates.\n**Have a creditworthy friend to cosign**. If you can find a trustworthy—and trusting—person who has a good credit rating to cosign on a loan with you if you need cash. Once you have the loan, make all payments on time every month. Take this responsibility seriously, since the co-signer will be on the hook for any payments you miss.\n**Ask to be an authorized user**. Almost all credit card issuers allow account owners to assign authorized users. If a friend or relative makes you one, you may charge with a card imprinted with your name, and the account should be listed on your credit reports. (Make sure this is the case, as card issuers don't always automatically add authorized users.) The owner makes the payments, not you, so if that person sends them on time (and doesn't get into deep debt), your scores will benefit.\n**Obtain a collateralized loan**. If you have a thin credit file but want to borrow money, look into secured loans. Because you pledge an asset that the lender can claim if you default, the lender takes less risk, making some of these loans easier to qualify for than their unsecured cousins. END
 TITLE: How Can Cell Phone Bills Help Build Credit? CONTENT: Keep Adding Positive Credit Report Information\n----------------------------------------------\nThe only way to build a credit history and improve credit scores is by ensuring that there is a constant flow of positive and current activity on your credit report. Therefore, if you haven't developed a credit score yet or the numbers are languishing at the bottom of the scale, add your cell phone bill to your report with Experian Boost. The more payments you make by the due date, the richer the data that will be used in a credit score will become.\nWhile you continue to build your credit history, be sure to get a copy of your free credit report. Ensuring all the information contained here is accurate is key to avoiding problems down the road and helping improve your credit. END
 TITLE: How to Get Started With Credit for the First Time CONTENT: How Do You Get a Credit Score?\n------------------------------\nUnless you have previous experience with credit or debt, you won't have a credit score or credit report. None of us are born with credit, and you aren't assigned a credit score at birth or automatically given one when you reach a certain age.\nOnce you encounter credit for the first time, whether that's when a parent adds you as an authorized user on a credit card, you take out a student loan or something else, a credit file is created in your name at the three consumer credit bureaus (Experian, TransUnion and Equifax).\nWithin six months, you'll typically have enough history to get your first credit score. It won't be zero, and it probably won't be 300, which is the minimum score possible from FICO® and VantageScore®, the most common credit scoring models. (Credit scores typically range from 300 to 850.) Your score may, however, start on the low side, tracking upward as you add to your history and make responsible financial decisions.\nAlso keep in mind that once you start building credit, you'll probably have many credit scores. That's because not all scoring models weigh credit report information the same way. That said, your credit scores from FICO® or VantageScore will likely be similar, and it's really most important to know which credit range you fall into when it comes time to apply for new credit. END
 TITLE: How to Get Started With Credit for the First Time CONTENT: Understand How Your Credit Score Is Calculated\n----------------------------------------------\nYour credit score may look like a simple three-digit number, but it's determined by math formulas that consider many different financial factors. Ultimately, a credit score is an attempt to summarize your history with borrowing and repaying debts. Here are the main components that go into calculating your credit score:\n*   **Payment history**: When you pay your bills on time, you help build a positive credit history that can lead to an increase in your score. If you make late payments or miss them altogether, it can drag your score down.\n*   **Credit utilization ratio**: This measures how much of your available credit you are using at any given time. In other words, how much debt you're carrying compared with how much credit you have. Find this by dividing a card's balance by its credit limit. A credit utilization ratio above 30% can more seriously harm your credit scores, so aim to keep your utilization as low as possible.\n*   **Length of credit history**: Lenders and credit scoring models look at how much experience you have with borrowing when they assess your creditworthiness. When you're new to credit, you'll lack a robust credit history—but it's something you'll build over time simply by maintaining your accounts and paying your bills on time.\n*   **Credit mix**: Your credit score benefits from having multiple types of credit, in part because this shows you have experience with various types of borrowing. For example, having both loans and credit cards can help more than having just credit cards. This factor plays a minor role in your score, however, and you shouldn't take out new forms of credit for that reason alone.\n*   **New credit**: When you apply for new credit accounts, a lender will pull your credit report and scores to decide whether to approve you. When this happens, it adds something called a hard inquiry to your credit report. Lenders and credit scorers can see these on your credit report, and they may negatively impact your scores slightly for up to a year.\nIt's also important to understand the types of financial accounts that impact your credit scores. Checking and savings accounts do not play a role. Instead, your credit file focuses on the accounts you've opened to borrow money. These come in two forms:\n*   **Installment credit**: This is a loan in which you borrow a set amount and repay in fixed monthly installments with interest. Once you've repaid the loan in full, you're done with it. Examples include personal loans, auto loans, mortgages and student loans.\n*   **Revolving credit**: This type of credit includes credit cards and lines of credit. Rather than providing a lump sum that you repay over time, revolving credit allows you to borrow repeatedly up to a given limit and repay it in variable amounts. You only pay interest on what you use. END
 TITLE: How to Get Started With Credit for the First Time CONTENT: Another Way to Improve Your Score\n---------------------------------\nPaying your utility bills on time doesn't usually make a difference in your credit score, but with Experian Boost™† , they can. This free tool allows you to link your utility and phone bills to your Experian account and get your phone or other utility repayment history factored into your credit score and report. If you're new to building credit and have been savvy with paying your utility bills on time, this can give a quick lift to your credit score. END
 TITLE: How Do I Build Credit if I Don’t Want a Lot of Credit Cards? CONTENT: 1\\. Look Into a Credit-Builder Loan\n-----------------------------------\nA credit-builder loan can help you build or rebuild your credit without using a credit card.\nThis kind of loan doesn't work like a regular loan, it works more like a savings account. When you take out a credit-builder loan, the amount you \"borrow\" is put into an account you can't access. Your monthly payments toward the loan are then deposited into a savings account, the balance of which will be returned to you (sometimes with accrued interest) when you pay off the loan as agreed.\nCredit-builder loans generally range from $300 to $1,000. During the loan term, normally six to 24 months, you'll make payments toward the loan balance.\nThe lender reports your loan payments to the national credit bureaus (Experian, TransUnion and Equifax), helping you build or improve your credit history. You can seek a credit-builder loan from a credit union, bank or online lender. END
 TITLE: How Do I Build Credit if I Don’t Want a Lot of Credit Cards? CONTENT: 2\\. Make On-Time Payments\n-------------------------\nJust as it's important to be on time for a work shift or a doctor's appointment, it's also important to be on time with your payments.\nPayment history is the No. 1 factor in calculating your credit score. Just one payment made more than 30 days late will likely cause your credit score to drop. Lenders, such as mortgage providers and credit card issuers, examine your payment history to determine whether to approve your application and how much credit you deserve.\nYour payment history makes up 35% of your FICO® Score☉ , the credit score used by most lenders. Other than credit card bills, payments for credit products like personal loans, auto loans and mortgages go into figuring your FICO® Score. END
 TITLE: How Do I Build Credit if I Don’t Want a Lot of Credit Cards? CONTENT: 3\\. Become an Authorized User\n-----------------------------\nBecoming an authorized user on someone else's (usually a family member's) account can be another avenue for building or rebuilding your credit.\nSo, what is an authorized user? It's a secondary account holder for a credit card. As an authorized user, you can make purchases with the card (if the primary account holder agrees), but the primary account holder is responsible for paying the bills.\nIf you're an authorized user, you might get your own credit card or account number. But the primary user controls the account, exercising the power to monitor purchases and make payments. If you're trying to build credit without a credit card, you might not even want your own card.\nHow does becoming an authorized user benefit your credit? When you're added as an authorized user, the credit card issuer typically reports the account to the credit bureaus and it becomes part of your credit report (make sure this is the case with the card you are considering). Then you can enjoy the positive characteristics of that account, such as a solid payment history or the length of time that the account has been open.\nFor this arrangement to work to your advantage, though, the credit card issuer must report the authorized-user activity to the credit bureaus and your credit score must include this activity in its scoring formula—neither of these are givens. Still, being an authorized user may give you an edge in building or rebuilding your credit.\nBefore you sign up as an authorized user, make sure you're aware of how the primary user handles credit. If they start to miss payments, the authorized user account can be removed from your credit report. END
 TITLE: How Do I Build Credit if I Don’t Want a Lot of Credit Cards? CONTENT: 4\\. Try Improving Credit With Experian Boost™†\n----------------------------------------------\nExperian Boost is a tool that can help improve your credit scores by reporting utility and phone bill payments to the credit bureaus, which wasn't previously possible.\nExperian Boost works by linking to your bank accounts to find qualifying on-time bill payments and, with your permission, to add those payments to your credit file. By using this tool, it's possible to see an instant lift in your credit scores. END
 TITLE: How Do I Build Credit if I Don’t Want a Lot of Credit Cards? CONTENT: 5\\. Consider a Secured Credit Card\n----------------------------------\nA secured credit card enables you to build credit if you have bad credit, or if you have little or no credit history. For instance, it might help you if you have a bankruptcy or a series of late payments on your credit report.\nTo get a secured credit card, you must deposit a certain amount of cash, often $50 to $300. The card issuer then extends a credit line to you usually in the same amount as the deposit. This differs from an unsecured credit card, which doesn't require you to deposit money as collateral.\nIn most cases, the card issuer will report your secured card account to the credit bureaus, enabling you to build or improve your credit history. If you want to apply for a secured credit card, make sure this is the case since not all issuers report secured card accounts. Making on-time payments every month will demonstrate responsible credit use, and some issuers will even transition you to an traditional unsecured card once you've made a certain number of on-time payments or kept your account in good standing. END
 TITLE: How Do I Build Credit if I Don’t Want a Lot of Credit Cards? CONTENT: Keep Track of Your Credit\n-------------------------\nAs they say, knowledge is power. When it comes to credit, knowing what's in your credit report and knowing your credit scores can empower you to build or rebuild your credit.\nRegularly monitoring your credit delivers several benefits, such as:\n*   Making it easier to spot changes in your credit report, especially those that might hurt your ability to qualify for credit cards and other financial products. For instance, you might notice a credit card payment that was reported as late when it actually was on time.\n*   Staying on top of your spending. For instance, you can see how much your credit credit balances have gone up or down and then adjust your spending.\n*   Seeing where your credit scores stand. This gives insights into whether you'll qualify for a loan, for example, or whether you might need to take action to bump up your scores. END
 TITLE: Does Leasing a Car Build Credit? CONTENT: How Leasing a Car Can Help You Build Credit\n-------------------------------------------\nWhen you lease a car, you'll have fixed monthly payments for the duration of the lease agreement. As with an auto loan, the creditor will report your monthly payments to the credit reporting agencies, and the account will show up on your credit report as an installment account.\nAs long as your leasing company reports to all three credit bureaus—Experian, Equifax and TransUnion—and all your payments are made in a timely manner, an auto lease can certainly help to build or establish your credit history.\nIt can also hurt your credit, however, if you miss a payment for 30 days or longer, or you default on the lease agreement altogether. So as with a car loan, it's important to practice good credit habits, including making on-time payments. END
 TITLE: Does Leasing a Car Build Credit? CONTENT: Can You Lease a Car With Bad Credit?\n------------------------------------\nAuto leasing companies generally look for consumers who have good credit or better, so it'll be challenging to lease a car with bad credit. You'll generally have a better chance of securing an auto loan, albeit with a high interest rate.\nIf you're dead set on leasing instead of buying, though, here are some things you could do to potentially improve your chances for approval:\n*   **Make a down payment.** If you're trying to make up for a poor credit score, a large down payment on a lease could show that you're serious about meeting the terms of the agreement. The upfront money also reduces the risk the lender takes on, making the arrangement more appealing.\n*   **Consider a cosigner.** If you can't get approved on your own and don't have enough cash for a down payment, consider asking a family member to cosign the lease with you. By cosigning, they agree to make payments if you can't, but you'll want to make sure it never comes to that to preserve your credit and your personal relationship.\n*   **Improve your debt-to-income ratio.** Your debt-to-income ratio (DTI), which is the percentage of your gross monthly income that goes toward your monthly debt obligations, is an important aspect leasing companies consider. By paying down other debts and reducing your DTI, you'll free up more cash flow, which makes it easier to make your monthly lease payments. END
 TITLE: Does Leasing a Car Build Credit? CONTENT: Things to Consider When Leasing a Vehicle\n-----------------------------------------\nWhile the impact of buying or leasing a vehicle on your credit score is the same, there's still plenty to consider before you make a decision: END
 TITLE: Does Leasing a Car Build Credit? CONTENT: Alternatives to Leasing a Car\n-----------------------------\nIf you have bad credit and can't qualify for a lease, you still may be able to qualify for an auto loan. Some lenders specialize in working with people with bad credit histories, and while the loans are expensive in terms of interest charges, it may be your best option to get back on the road.\nOther options include:\n*   **Lease transfers**: A lease transfer allows you to take over someone else's existing lease instead of entering a new lease agreement. Leasing companies run a credit check before approving a transfer, but the credit requirements may not be as strict.\n*   **Car-sharing services**: If you don't drive often, you may be able to take advantage of car-sharing services, which allow you to rent vehicles on an hourly basis. Again, you can't escape a credit check with this option, but you likely won't face stiff criteria for approval.\n*   **Vehicle subscription services**: Like car-sharing services, vehicle subscription services allow you to pay to borrow a vehicle. The difference is that with this option, there's no definite rental period. You'll pay an upfront fee to gain access to a vehicle, then pay a monthly fee until you return it. You'll likely undergo a credit check, and there are income and driver's license requirements, but it can be easier than getting approved for a lease. END
 TITLE: Does Leasing a Car Build Credit? CONTENT: Work to Improve Your Credit for the Next Lease\n----------------------------------------------\nIf you have time before you need a new car or you simply want to improve your odds of getting approved for a lease in the future, take some steps to improve your credit score.\nStart by monitoring your credit score regularly to understand where it stands and get updates on new accounts and inquiries. Also, check your credit report and look for areas that need to be addressed.\nFor example, it's important to get caught up on past-due payments, pay down credit card debt and avoid unnecessary credit applications. Also, consider asking a loved one to add you as an authorized user on their credit card account if it has a positive history.\nAs you take steps now to improve your credit, you'll be able to put yourself in a much better position to get approved for an auto lease the next time you're looking for a new car. END
 TITLE: How Long Should I Stay on My Parent’s Credit Card Account? CONTENT: When Is It Time to Leave Your Parent's Account?\n-----------------------------------------------\nBefore deciding whether to leave your parents' credit card accounts, there are a few things you should consider. It may be time to remove yourself from the accounts when you've built up enough credit to qualify for your own lines of credit, which will help you build a credit history. The length of your credit history is a factor in determining your credit score; getting started early can make it easier to get approved for future borrowing or help you nab you lower interest rates.\nYou should also wait until you're financially stable enough to make all your payments on your own and know how to use a credit card responsibly. You'll no longer have your parents on the account to fall back on if you miss a payment or drive up debt. Charging more than you can afford on credit cards will work against you if it hurts the credit score you're trying so hard to build.\nOne downside of asking to be removed from a parent's card is that the credit account may be taken off your credit history. This could have an impact on the length of your credit history, which is a factor in your credit score. But building a positive payment history of your own could work to improve your credit score more than the loss of the authorized user account would bring it down, so the tradeoff is generally worthwhile. END
 TITLE: How Long Should I Stay on My Parent’s Credit Card Account? CONTENT: How to Graduate From Your Parent's Credit Card Account\n------------------------------------------------------\nBeing an authorized user on a parent's credit card account is a great way to learn how to manage credit card spending and pay down debt. But if you think you've learned enough and are ready to transition off of one or more of their credit card accounts, here's how to do it the right way: END
 TITLE: How Long Should I Stay on My Parent’s Credit Card Account? CONTENT: Learning to Use Credit on Your Own\n----------------------------------\nAs you continue to use your own credit cards, open new credit accounts and build your credit history, it's a good idea to keep an eye on your credit. Free credit monitoring can help you track the progress of your credit score over time, so you can see your successes (and get alerted to any problems or fraudulent activity). Just as with so many other things, the more experience you gain with credit, the more confident you'll be—and the better you'll be able to navigate the world of credit. END
 TITLE: How to Use a Credit Card to Build Credit CONTENT: Starting to Build Credit With a Credit Card\n-------------------------------------------\nCredit cards help you build credit because credit card issuers typically report your account and activity to the national credit bureaus—Experian, TransUnion and Equifax. The bureaus then use this information to create your credit reports, which are the basis of your credit scores.\nTo start building credit with a card, you'll need to either open a credit card of your own or become an authorized user on someone else's credit card. Getting a card of your own can be difficult if you've never had credit before, or if you have poor credit. However, there are options.\n*   **Secured credit cards** are often a stepping stone if you're starting to build or rebuild your credit. These cards function like normal credit cards, but you'll have to send the card issuer a refundable security deposit when you open your account. Secured cards may have high fees and don't necessarily offer great cardholder benefits, but responsible use can help you qualify for better credit cards later.\n*   A **student credit card** can also be a good first option if you're a student. Student cards tend to have low credit limits; however, there are student cards available that have few fees and offer rewards on purchases.\nYou can also ask a friend or family member to add you as an authorized user on one of their credit cards. When they do, their credit card company can report the account to the bureaus under your name as well. You'll get your own card and can make purchases, as long as the primary cardholder agrees.\nHaving another person's card as part of your credit history can help you build credit—as long as the primary user manages their card well. Your credit won't be helped if the primary cardholder doesn't make payments on time, for example.\nOnce you begin building good credit of your own, it may be easier to get approved for different types of unsecured credit cards. END
 TITLE: How to Use a Credit Card to Build Credit CONTENT: What Are the Best Ways to Use a Credit Card to Build Credit?\n------------------------------------------------------------\nA credit card can either help you build positive credit or hurt your credit—it all depends on how you use it. To work your way toward excellent credit scores, focus on making on-time payments and avoid maxing out your card. Here are the best ways to use your credit card to your benefit: END
 TITLE: How to Use a Credit Card to Build Credit CONTENT: While opening and using credit cards can be a good way to build credit, they're not the only option. Loans and other types of accounts can also help if they're reported to the credit bureaus.\nWhen you're starting out, you could look into credit-builder loans, which are designed specifically for this purpose. Other common loans, such as student, auto and mortgage loans can also help you build credit.\nAs with credit cards, making payments on time with loans is the most important factor in building credit. Your remaining balance can also impact your scores, but it's not as important as utilization rates on credit cards.\nOther types of accounts, such as utility and phone plans, often don't get reported to the bureaus or impact your credit. However, Experian Boost™† is a free service that allows you to add your phone and utility accounts to your Experian credit report so they can help you build credit. There are also rent reporting services that you may be able to use to add your rent payments to your credit reports. END
 TITLE: How to Use a Credit Card to Build Credit CONTENT: Build and Monitor Your Credit\n-----------------------------\nWhether you're starting with a credit card or using a loan to build credit, you can monitor your progress by tracking your credit report and score online. Experian offers free access to your credit report and a free FICO® Score☉ , as well as ongoing credit monitoring and alerts if there's any suspicious activity. You can see which information gets reported, how your score changes over time and receive personalized suggestions for how to improve your credit. END
 TITLE: Why a Credit Card Alone Might Not Be Enough to Build Your Credit CONTENT: Don't Ignore Credit Mix When Building Credit\n--------------------------------------------\nThere are multiple factors that make up a credit score:\n*   Payment history\n*   Amounts owed\n*   Length of credit history\n*   Credit mix\n*   New credit\nCredit mix, or types of credit, considers the kinds of debt you've taken on, such as installment loans and revolving lines of credit. Lenders like to see that you're a versatile borrower, so credit mix accounts for 10% of your credit score.\nRevolving credit, such as credit cards, can revolve with or without a balance on an ongoing basis. Credit cards offer flexibility because you can use them up to the maximum credit limit—or not at all. Revolving credit generally requires a minimum monthly payment, but other than that you can pay off as much or as little as you'd like.\nInstallment loans, on the other hand, have a fixed schedule of payments over a predetermined length of time. Once the loan is taken out, the borrower is obligated to make payments according to the payment schedule.\nExamples of installment loans include mortgages, auto loans and personal loans.\nTo lenders, a diverse mix of installment loans and revolving lines of credit indicates you can responsibly handle both types of products. For example, if you apply for a loan like a mortgage, the lender will want to see how you've handled other installment loans, and whether you can pay a fixed amount back on a regular schedule.\nIf you've only had credit cards and not installment loans on your credit report, you may have a harder time getting approved or getting a low interest rate. END
 TITLE: Why a Credit Card Alone Might Not Be Enough to Build Your Credit CONTENT: The Right Loan Could Help You Build Credit\n------------------------------------------\nAs long as a loan reports to the credit bureaus, it could help you build credit, but not all loans are created equal.\nFor example, many \"buy here, pay here\" car dealers and payday lenders don't report to the credit bureaus. This means any on-time payment history won't be visible on your credit report.\nThe catch is, to get approved for a loan that does report to the credit bureaus, you usually need a positive credit history or, barring that, a cosigner. If you don't have a cosigner, but you're looking to build your credit and improve your credit mix with an installment loan, you may want to check out credit-builder loans. END
 TITLE: Why a Credit Card Alone Might Not Be Enough to Build Your Credit CONTENT: Building Credit With a Credit-Builder Loan\n------------------------------------------\nA credit-builder loan is a product specifically designed to help people who have little or no positive credit history build their credit. You can find these loans online, through a local credit union or through a community bank.\nWith credit-builder loans, borrowers make payments into a bank account held by the lender, and when the final payment is made, the money inside that account is returned to the borrower, minus interest and fees. You do not get the money upfront.\nThe length of these loan types vary anywhere from about six months to three years. Compared with other borrowing options for people with bad or no credit, the interest rates on credit-builder loans are relatively low.\nUltimately, credit-builder loans could help diversify your credit by adding an installment line to your mix. END
 TITLE: Why a Credit Card Alone Might Not Be Enough to Build Your Credit CONTENT: It's Not Just a Loan, It's How You Use It\n-----------------------------------------\nLoans by themselves don't help you build credit—you also have to manage them responsibly. Since installment loans have a set payment due date each month where you owe a fixed amount, you have to pay it on time and in full every time.\nThis on-time payment history accounts for 35% of your credit score and is the most important factor.\nEven just one missed or late payment could stay on your credit report for seven years or more and negatively impact your score.\nBottom line? Adding an installment loan to your credit mix could help your credit, but only if you use it well. END
 TITLE: How to Get Credit for the First Time CONTENT: Understand How Credit Works\n---------------------------\nYour credit report is a record of how you've managed your debts. Do you make payments on time or are you always late? Are your credit cards nearly maxed out? Have you missed a student loan payment? All of this information is available in your credit report.\nBanks, credit card companies and other companies you do business with report your payment history to one or more of the three major credit bureaus (Experian, TransUnion and Equifax). That information goes into your credit report. Based on the information in your credit report, a three-digit credit score is generated. There are several different credit scoring models, and each one calculates your score in a slightly different way, but no matter what model is used, the credit score represents how creditworthy you appear to lenders.\nWhen you apply for a credit card, loan or other form of credit, the creditor will check your credit report and pull your credit score. The higher your credit score, the more confident creditors will be that you can pay them back. If you have a poor credit score, however, you may be denied credit or offered credit on more onerous terms, such as a higher interest rate. END
 TITLE: How to Get Credit for the First Time CONTENT: Open a Secured Card\n-------------------\nOpening a secured credit card is a good way for first-timers to build credit. As the name implies, this type of card is \"secured\" by a refundable security deposit. If you don't pay your bill, the card issuer can use your security deposit to cover it. The amount of your security deposit typically determines your credit limit. You may be able to get a secured credit card with a deposit as low as $200; some cards let you deposit more money if you want a higher credit limit.\nBefore applying for a secured credit card, make sure that the card issuer reports your payment history to the three major credit reporting agencies. Otherwise, using that card won't help you build a credit history. Also, clarify any additional fees the card charges as these extra fees can reduce your credit limit. Finally, be sure you know exactly what your credit limit will be so you don't accidentally go over it.\nOnce you receive your secured credit card, use it to make small purchases every month and be sure to pay the bill on time. This helps establish that you can handle credit wisely. Remember that even one late payment can hurt the credit score that you're trying so hard to establish. To ensure you never miss a payment date, it's a good idea to set up automatic payments for at least the minimum amount due each month. END
 TITLE: How to Get Credit for the First Time CONTENT: Become an Authorized User\n-------------------------\nIf you have family members who are responsible credit users with good credit scores, getting added to one of their credit card accounts is a good way to start building credit. Some parents choose to add their teenage or college age children as an authorized user on their credit cards to give them a head start before they can get a card of their own.\nTo get the most benefit from being an authorized user, see if you can be added to an account that has been open for a long time, that the primary cardholder always pays on time, and that has a low credit utilization ratio (meaning less than 30% of the total available credit on the card is being used).\nOnce you're an authorized user, you can make purchases on the card, and the account will appear on your credit report. You'll benefit from the good credit history the primary cardholder has already built up with that card. However, it works the other way too: If the primary cardholder is late with a payment, the account could be dropped from your credit file, which will negate any positive effect it was providing.\nBeing an authorized user is sort of like training wheels for having your own credit card. The primary cardholder is ultimately responsible for all charges on the card. However, you should always strive to pay for your own charges; this will help you develop good credit and budgeting habits (and stay in good standing with the primary user). END
 TITLE: How to Get Credit for the First Time CONTENT: Always Make Payments on Time\n----------------------------\nOnce you have a credit card, make sure to pay your bill on time every month. Your payment history is the single most important factor in your credit score, accounting for 35% of your FICO® Score☉ (the credit scoring model most lenders use).\nKeeping your credit utilization ratio low is another way to build good credit. This ratio refers to the percentage of your available credit you're using. If your credit card has a limit of $200 and you're carrying a balance of $100, you're using 50% of your available credit. Maintaining a credit utilization ratio below 30% of your credit limit (or better yet, below 10%) will help to boost your credit score. Paying your balance in full each month helps too—and will also prevent you from accruing interest on your purchases.\nDo you have any outstanding student loans? Paying those bills on time can help improve your credit score. Student loans are installment credit, while credit cards are revolving credit. Having a mix of both types of credit helps to increase your credit score. Finally, if you pay your own cellphone bills or utility bills, consider signing up for Experian Boost™† , a free service that adds on-time payments for those services and more to your credit report, potentially helping improve your FICO® Score. END
 TITLE: How to Get Credit for the First Time CONTENT: Keep Track of Your Credit Score and Report\n------------------------------------------\nWhen you kick off a fitness regimen, you probably weigh and measure yourself as you go to track your progress. As you begin to build credit, you should check your credit reports and scores periodically to see how your efforts are paying off.\nGet a free credit report and review it regularly to make sure it accurately reflects your credit accounts. You can get a free credit report through Experian anytime (it updates every 30 days). And you can get a free credit report from all three major credit bureaus every 12 months through AnnualCreditReport.com.\nYou'll need to have a credit account for six months before your FICO® Score can be generated, although some credit scoring models will generate a score earlier. After six months, check your credit score to see how it's doing, and continue checking it regularly to see your progress as you build a credit history. You may be new to credit now, staying on top of your credit score will always be a smart idea. END
 TITLE: Can Financing a Cellphone Help You Build Credit? CONTENT: How Cellphone Financing Works\n-----------------------------\nAs phones have become more expensive, consumers may want or need to finance the purchase and pay over time. Some even choose to lease a new phone, which allows them to make modest monthly payments and easily upgrade to a newer model each year.\nYou may be able to find financing by working with the phone's manufacturer or a wireless carrier, or using an alternative form of financing (such as a credit card) to buy the phone. Here are how some popular financing options work. END
 TITLE: Can Financing a Cellphone Help You Build Credit? CONTENT: How Financing a Cellphone Affects Your Credit\n---------------------------------------------\nIf you're financing your new cellphone purchase, or leasing one, you might experience several impacts on your credit.\nFirst, the creditor (whether it's the company or a partnered bank or credit card issuer) may check your credit when you apply. The resulting hard inquiry could lower your credit scores, but often, a single hard inquiry results in a minor drop that dissipates over a few months.\nThen, your monthly payments may help you build a positive credit history if you're making them on time. Alternatively, they could hurt your credit if you miss a payment. For your new account to impact your credit scores, the creditor will need to report the account to a credit bureau. Many banks and credit card issuers do this, but wireless carriers might not.\nIf you fall far enough behind on your payments, the creditor may close your account and sell or transfer it to collections. Even if the account wasn't showing up in your credit history before, the collection account could get reported and hurt your credit. END
 TITLE: Can Financing a Cellphone Help You Build Credit? CONTENT: Alternative Ways to Build Credit\n--------------------------------\nMaking credit card and loan payments on time is often the most direct way to build credit. However, in recent years, it's become easier to build credit with alternative types of payments.\nFor example, you may be able to get your rent payments reported to the credit bureaus and added to your credit reports. Experian also offers the free Experian Boost™† tool, which you can use to add cellphone and utility bill payments to your Experian credit report. These payments can then get included in credit score calculations and may improve your scores.\nEven if you don't use financing to purchase your phone, your monthly cellphone plan payments can help you build credit if you sign up for Experian Boost. END
 TITLE: Can Financing a Cellphone Help You Build Credit? CONTENT: Is Financing a Cellphone Worth It?\n----------------------------------\nIf you're buying a phone and can afford to pay for it in full upfront, you still may want to take advantage of a zero-interest financing offer to spread out the payments over time and keep more of your cash available. You can also choose to pay off the phone early if you want to own it outright before the end of the payment plan.\nHowever, you'll need good credit to qualify for financing, especially if you don't want to make a down payment. You can see where you currently stand by checking your Experian credit report and getting a FICO® 8 credit score based on your report for free.\n_All information about the Apple Card, Barclaycard Financing Visa® and Google Store Financing credit card has been collected independently by Experian. The product details on this page has not been reviewed or provided by the card issuer._ END
 TITLE: How to Protect Your Identity While Shopping Online CONTENT: How to Prevent Fraud When Shopping Online\n-----------------------------------------\nWhile there's no way to guarantee that you won't become a victim of fraud or identity theft, there are many measures you can take to make it less likely. Next time you shop online, try these tips to help protect your identity and reduce the risks.\n*   **Only shop on private internet networks.** When you're browsing the internet on a public Wi-Fi network, you are more vulnerable to hacking. That's because public networks make it easier for hackers to intercept your data and nab your sensitive information. If you're going to enter your credit card information or other sensitive data on your phone or computer, do it at home on your own private network, or use a secure virtual private network (VPN) connection so others can't easily access your device. VPNs encrypt your data, meaning it can only be read at either end of the transmission and only with the right key.\n*   **Check to see if the website is secure.** Before you make a purchase online, check to see if the website's URL starts with \"https\" rather than \"http.\" Https indicates the website has a secured connection, which means your connection to that website is much harder to hack. Some browsers will show a lock icon or say \"secure\" in the web address bar to indicate a secure website.\n*   **Use your credit card.** While you may prefer to make purchases with a debit card that's linked to your checking account, your credit card offers much more protection for online purchases. Most credit cards have a zero-liability policy that protects you from any responsibility for fraudulent purchases made with your account. Debit cards are not required to have as much protection, and they require you to report the fraud by a certain date (though some issuers may extend their protections). Plus, until it's resolved, the money is gone from your checking account. If you use a credit card, on the other hand, you don't lose money—you may just have less available credit until the issue is resolved.\n*   **Utilize your card's security features.** Some credit cards have special features that give you additional levels of protection when you shop online. For example, some issuers provide virtual card numbers, which gives you a temporary card number for a purchase so that businesses (and hackers) can't access and misuse your real credit card number. If your virtual card number is compromised you'll simple cancel it and alert your issuer, instead of having to swap out your payment details on every account. Plus, many credit cards also let you set up account alerts, which can inform you if purchases are made that seem suspicious or are above a certain amount. END
 TITLE: How to Protect Your Identity While Shopping Online CONTENT: What to Do if You Suspect Identity Fraud\n----------------------------------------\nIf you think you might have been scammed while shopping online, there are a few steps you can take to help protect your identity and your finances: END
 TITLE: How to Protect Your Identity While Shopping Online CONTENT: Protect Yourself, Protect Your Credit\n-------------------------------------\nWhether you've been a victim of identity theft or are trying to protect your sensitive data, it's always smart to monitor your credit for unauthorized activity. There's a lot you can do to minimize your risk, including various types of credit and identity monitoring. Experian has an Identity Theft Monitoring program that's free for the first month and automatically monitors changes to your credit report, in addition to scanning the dark web for your information to ensure it hasn't been stolen.\nCredit fraud and identity theft can be quite a hassle to clean up, so save yourself the trouble and do what you can to prevent it in the first place. END
 TITLE: How to Fight Tax Identity Theft CONTENT: How Does Tax Identity Theft Happen?\n-----------------------------------\nTax identity theft takes several forms, but the objective is the same: To harness the power of the IRS to intimidate victims into giving up their money or personal information.\nSpecific ways tax identity fraud can appear include:\n*   **Hijacked tax returns**: A criminal submits a tax return using your identifying information and has your refund redirected to them. It's common to learn of this scam when you try to file your legitimate tax return, only to have the submission rejected on grounds that a return has already been filed using your Social Security number.\n*   **Fake tax collection efforts**: An official-seeming letter, email, phone call or (more rarely) personal visit from a purported IRS official says you owe taxes and will face immediate dire consequences (arrest, forfeiture of your car, etc.) unless you act right away. Follow-up instructions could demand payment via electronic transfer, money order or even prepaid credit cards.\n*   **Identity intimidation**: In the course of trying to bully you into making a bogus payment, scammers posing as IRS officials might ask for access to your bank account or for essential tax info such as your Social Security number or your online tax-filing PIN. In addition to stealing funds directly by using this information, thieves can use it to open bogus bank accounts and apply for loans or credit cards in your name. END
 TITLE: How to Fight Tax Identity Theft CONTENT: Understanding IRS Methods\n-------------------------\nSocial Security numbers are a frequent target of many fraudsters, and should be closely guarded under all circumstances. Their use in bogus tax returns is a regular focus of consumer warnings from the IRS—as are warnings about criminals impersonating the IRS over the phone, via email and even in person.\nCriminals are continually updating their tactics, and the IRS updates its consumer alerts webpage accordingly. It's a good idea to familiarize yourself with the latest scams, as you can avoid many bogus IRS shakedowns if you understand what real IRS representatives do and don't do when they get in touch with taxpayers. END
 TITLE: How to Fight Tax Identity Theft CONTENT: How to Report Tax Identity Fraud\n--------------------------------\nIf you're suspicious about any potentially fraudulent communication from the IRS, the agency suggests separate courses of action—one for individuals or couples who don't owe taxes and have no reason to think they do, and another for those who owe taxes (or don't know if they do) and want to be sure their payments are going where they belong. END
 TITLE: How to Fight Tax Identity Theft CONTENT: The best defense against tax identity theft is to familiarize yourself with IRS communications methods and have the confidence to double-check even the most official-seeming communications anytime you're asked to provide payment or disclose account numbers or your Social Security number.\nIf in doubt, use the resources listed above to verify whether or not the correspondence you've received is really from the IRS. Recognize that scams are prevalent, train yourself to look and listen for the signs of fraud, and trust your instincts. If you're suspicious about any communications, check into it—and never give out your Social Security numbers, passwords or PINs.\nA free credit freeze is an additional layer of protection that can help limit the damage to your credit in case a criminal gets hold of your personal information. It prevents access to your credit report at all three national credit bureaus (Experian, TransUnion and Equifax). A security freeze must be initiated at each bureau separately. Doing so will make it impossible for criminals to apply for loans or credit in your name. END
 TITLE: How to Protect Your Identity and Credit CONTENT: Differences Between Credit Monitoring and Identity Theft Protection\n-------------------------------------------------------------------\nCredit monitoring alerts you whenever there is activity that involves or affects your credit report, including:\n*   **Inquiries**: Requests from lenders to review your credit report or obtain a credit score in connection to loan applications.\n*   **New accounts**: Any time a new loan or credit card account is opened using your name and Social Security number, credit monitoring notifies you via text or email. New accounts can also include collections accounts.\nIdentity theft protection, including services offered by Experian, typically encompasses alerts covered under credit monitoring, and extends its scope to include combing online exchanges, including those on the dark web, for signs your passwords or other personal data appear on lists of information stolen by data pirates, culled from data breaches or otherwise hijacked by cybercriminals. END
 TITLE: How to Protect Your Identity and Credit CONTENT: When Does It Make Sense to Use Credit Monitoring?\n-------------------------------------------------\nCredit monitoring is something you should already be doing, by way of obtaining and carefully reviewing your credit reports once a year at AnnualCreditReport.com and by tracking your credit score for free to check for significant score changes you can't explain based on your borrowing and debt payment activities.\nIf those checks reveal signs of suspicious activity, or if you have reason to be concerned that your personal data has been compromised, stepping up your watchfulness with automated credit monitoring could be a wise decision. END
 TITLE: How to Protect Your Identity and Credit CONTENT: When Should I Use Identity Protection?\n--------------------------------------\nStepping up to professional identity theft protection is advisable if you know your personal data has been exposed or stolen, if you have already experienced identity theft or attempts at credit fraud, or if you're concerned that your minor children may be targeted for identity theft.\nIdentity theft protection can flag the need to change credit card numbers and passwords as soon as that information is compromised (and before criminals have a chance to use them). It can shield you and your children from financial loss in the event of successful identity theft and it can give you the ability to forbid and allow instant access to your credit files. END
 TITLE: How to Protect Your Identity and Credit CONTENT: How to Prevent ID Theft\n-----------------------\n*   **Turn on two-factor authentication whenever possible.** This security option is widely available from companies that do business via smartphone apps and websites—which is to say practically all major retailers and financial institutions.  \n    Activating two-factor authentication adds a step to the login process for the apps or website in question: In addition to entering a username and password, you must enter a numerical passcode sent to you via email, text message or robotic voice call. This helps ensure your identity, on the assumption that a crook who gets their hands on your username and password will be much less likely to have access to your phone or email at the same time. Logins will take a few seconds longer, but the extra measure of security is well worth it.\n*   **Change passwords often.** The frequency of data breaches at retailers and e-commerce websites makes it clear that passwords and usernames are vulnerable even at institutions with big cybersecurity infrastructures. You can't do anything to prevent data heists at the companies you work with, but you can limit the \"shelf life\" of stolen passwords by changing them frequently.\n*   **Use a password manager.** While you may know to never store passwords on slips of paper in your wallet and to avoid using the same password for multiple accounts, having to change forgotten passwords on seldom-used sites can be frustrating. A password manager can solve that issue.  \n    The best password managers will keep a running list of all your passwords, and even generate and store random passwords no one would ever guess, making it easier to switch up your passwords often. During your search for a free password manager, look for a product that works with all the devices you use to shop and manage finances online (smartphone, tablet, laptop, etc.).\n*   **Sign up for identity theft protection.** With Experian IdentityWorks℠, for example, you'll get identity theft monitoring and alerts, as well as dark web surveillance. Experian identity theft protection services also include insurance that can cover up to $1 million in financial losses related to identity theft, and the ability to apply and remove a credit lock on your Experian credit report.\n*   **Consider using credit freezes or fraud alerts.** These make it more difficult for fraudsters to secure loans or credit cards in your name. A credit freeze prevents anyone from checking your credit report or credit score (typically the first step creditors will take in reviewing applications for loans or credit cards). A fraud alert requires creditors to verify your identity before processing any application made in your name. Both of these free services make it harder for criminals to seek credit using your identity.\nIn the age of digital commerce and electronic record keeping, cyber criminals are constantly devising new schemes for hijacking personal data and using it to unlock financial holdings. It's critical for all individuals to watch out for unauthorized credit activity. For many, automated credit monitoring and identity theft protection services provide an extra level of caution and care that can safeguard credit and avoid costly, time-consuming remedies to identity theft. END
 TITLE: What Is Identity Theft Insurance? CONTENT: How Does Identity Theft Insurance Work?\n---------------------------------------\nIdentity theft can occur in several ways. Someone may steal your credit or debit card—or just the account numbers—to make purchases. Other thieves obtain information about you by gaining access to the computer systems where companies keep their customers' personal and financial information (a data breach). Once they have your information, they may be able to drive up your account balances, open new credit cards or take out loans in your name.\nSome crooks use phishing scams to lure you into revealing your information. These involve sending emails or texts that look like they're from legitimate companies, asking you to provide your personal and banking details for updates or promotions.\nNo matter the method used—you'll be the one stuck with the bill and any credit problems that might result.\nThis is where identity theft insurance comes in. Depending on the policy, it can help with a wide variety of circumstances involved in clearing up the matter, including:\n*   **Lost wages:** If you take time from work to fix identity theft issues, the policy can replace the income you didn't earn.\n*   **Notary fees:** You might need to get documents authorized by a notary, who will verify signatures on paperwork you need to send. The policy will likely cover the cost.\n*   **Mailing costs:** To ensure documents end up in the right place, you'll want to send them certified mail, return receipt requested. Identity theft insurance will usually pick up that cost.\n*   **Phone bills:** If you incur any phone-based expenses as you're dealing with this issue, they may be covered.\n*   **Child care:** If you need to pay someone to mind your children while you rectify the problems associated with identity theft, some insurance policies will even cover the cost of child care.\n*   **Credit monitoring:** A credit monitoring service will find out if your information is for sale, and will let you know if fraud is detected. Identity theft insurance typically includes it in the plan.\n*   **Legal fees:** Attorney and court costs may result from identity theft problems, and they can rack up fast. Many identity theft insurance policies cover them. END
 TITLE: What Is Identity Theft Insurance? CONTENT: How to Get Identity Theft Insurance\n-----------------------------------\nThere are a number of companies that offer identity theft insurance. It may be available from your homeowners or renters insurance, and some companies offer it as their sole product.\nExperian's Identity Theft and Credit Protection Service comes with a variety of valuable services designed to safeguard your credit file:\n*   **Identity theft monitoring and real time alerts:** If fraud is detected, you will receive an immediate notification.\n*   **Dark web surveillance:** Experian's proprietary technology can detect stolen personal data on over 600,000 dark web pages, file-sharing sources, forums and other places your data can turn up.\n*   **Three-bureau credit monitoring:** Unexpected changes to your credit reports can be a sign of identity theft. Experian monitors all three credit bureaus (Experian, TransUnion and Equifax) to identify credit inquiries, new accounts, account balance changes and credit utilization.\n*   **Up to $1 million in identity theft insurance:** The policy will cover the cost to replace stolen funds linked to unauthorized electronic transfers, as well as lost wages.\n*   **Ability to easily lock and unlock your credit file:** You'll be able to lock your Experian credit file to help stop unauthorized credit activity, then receive real-time alerts if anyone does try to apply for credit in your name while it's locked.\n*   **Fraud resolution support:** Dealing with this crime is stressful, so Experian has U.S.-Based fraud resolution specialists you can reach out to for help resolve any identity theft problems. END
 TITLE: What Is Identity Theft Insurance? CONTENT: How to Reduce Your Risk of Identity Theft\n-----------------------------------------\nIt's comforting to be protected by an excellent identity theft insurance policy, but reducing the risk of identity theft from occurring in the first place is also something you should do.\n*   **Make sure you use strong passwords.** They should contain at least eight characters, containing a variety of upper and lower case letters, numbers, and special characters. Never incorporate names, birthdates, phone numbers or email addresses, and use a different password for each site.\n*   **Be attuned to phishers.** If you get any form of communication from a bank, utility company, or any other business or individual asking you to update your data by clicking a link or requesting your Social Security number and other personal information, delete the message immediately. Visit the real site, call the official number, and ask if they reached out. If they didn't, inform them of the problem.\n*   **Protect your personal documents.** Have statements sent electronically rather than by hard copy. Lock your mailbox or use a post office box, shred anything that has your private information on it. Invest in a safe deposit box and store all important documents in it.\n*   **Purge your data from all devices before you sell or dispose of them.** Use a wipe utility program that overwrites the entire hard drive. Even if a drive is damaged or doesn't work, the data may still be accessible.\nEven if you're already following those tips, it's a wise idea to check your credit reports often. Read them carefully, looking for anything that seems amiss. Or sign up for free credit monitoring with Experian. You'll obtain notifications about suspicious activity, inquiries and new accounts, plus any changes to your personal information.\nIf you believe that identity theft activity might already have occurred, place a free fraud alert on your credit file. It can help prevent identity theft from open accounts in your name because the fraud alert will notify a creditor that you've been a victim of fraud and ask them to verify your identity before processing an application. A temporary and active-duty fraud alert lasts one year, but if you're already a victim and submit a copy of an identity theft report, you may request an extended fraud victim alert, which lasts for seven years.\nEven if you have identity theft protection and monitoring services, keeping a close watch on your own credit file is a powerful way to remain in charge. You can obtain your free Experian credit report at any time, and it will never impact your credit scores. END
 TITLE: How Can Biometrics Protect Your Identity? CONTENT: How Does Biometric Verification Work?\n-------------------------------------\nWith biometrics—you are the password. And if you have a newer iPhone or Android device, you already have first-hand experience with this technology if you use your fingerprint or face to unlock your device.\nIn order to use biometrics to verify your identity, you need to first register or store an input that can't be replicated without your presence such as a fingerprint or a scan of your face. When you access the system later, you'll provide the same input and it'll be compared against what's stored.\nThere are two main categories of biometric inputs, physical and behavioral:\n*   **Physical biometric inputs** include things like fingerprints, facial patterns, handprints and eye patterns. Depending on the biometric device used, one or more of those features are scanned and checked against your profile to verify that it's you.\n*   **Behavioral biometric inputs** may be your voice, location and typing patterns, and may be deployed on their own or in addition to physical inputs. When accessing a system that uses behavioral biometrics, you may be prompted to say something out loud so it can verify your voice. Other behavior, like the way you type, could also be used to verify your identity on some devices.\nFor most biometric systems, there are three components that process the biometric input:\n1.  Sensor. A sensor is what reads your biometric input, whether it's behavioral or physical.\n2.  Computer. The computer in this case is the system that stores the data your input will be compared against when verifying your identity.\n3.  Software. The software helps to process this whole transaction, acting as the intermediary between the sensor and the computer. The software will do the thinking, processing your biometric input, looking for the matching profile and approving or denying the authorization.\nThat all comes together in practice like this in a system that uses fingerprint biometrics: The sensor is the part you'll touch so your fingerprint can be captured and sent to the computer. The computer will then use software to verify your fingerprint against verified fingerprints in a database and decide to grant you access based on whether it finds a match. END
 TITLE: How Can Biometrics Protect Your Identity? CONTENT: Strengths and Advantages of Biometrics\n--------------------------------------\nThe main advantage of using biometric authentication is simple: it's much harder for a fraudster to fool a system that uses your unique physical characteristic to verify your identity. Even if you create complex passwords and change them frequently, it only takes one data breach for your password to slip into the wrong hands. By using biometric authorization, you're putting up another barrier to keep others out of your account.\nAnother advantage of using biometrics for security is that it lends itself well to fast-paced secure environments. Since biometrics can be used with a quick touch or glance at a camera, it enables a high level of security, with a low amount of time or effort required. END
 TITLE: How Can Biometrics Protect Your Identity? CONTENT: Where You Might Find Biometric Features\n---------------------------------------\nAs any fan of police procedurals knows, using a fingerprint or other physical characteristic to verify an identity is nothing new, but its presence as a security feature in consumer and professional electronics has taken off in recent years.\nNewer iPhones and Android cellphones use fingerprint and face identification features as a replacement for passwords. Workers in factories, plants and some offices may have encountered fingerprint authorization being used on the time clocks they use to punch in and out. If you've flown recently, you may have noticed Clear kiosks, which use biometric technology to get you through airport security lines more quickly by verifying your identity using face and fingerprint scanners.\nAs more companies step up to improve the privacy of user data, and as more consumers become aware of security risks they help prevent, biometric technologies look like they will become increasingly prevalent. In 2017, a study showed that fingerprint scanning was the most popular form of biometric authorization, followed by facial recognition. Voice recognition is popular for applications that involve remote authorization, like verifying your account details over the phone with your bank. END
 TITLE: How Can Biometrics Protect Your Identity? CONTENT: The Risks of Biometrics\n-----------------------\nThough biometric technology is meant to provide increased security, there are still a few things to be aware of. Here are some of the main risks to look out for when using biometric verification:\n*   **It's not foolproof.** A fraudster could theoretically obtain a copy of your fingerprints or a high resolution picture of you and use it to fool a biometric device. This would be difficult to do, but is still a possibility.\n*   **It requires high security standards.** While biometric technology might keep your information _within_ an account more secure (think of the data on your phone or computer) the storage of the biometric data itself needs to be secure too. Since biometric information is unique and can't be changed, it's important that the companies storing this data employ extra security to make sure it's protected. A hacker obtaining your fingerprint data can have deeper implications over a password you can easily change.\n*   **There can be legal limitations.** Finally, firms that use biometric technology for employee tracking—like those that have biometric attendance time clocks—need to be aware that certain states have legal guidance for how biometric data can be collected. Illinois, through the Biometric Information  Act, was one of the first states to enact comprehensive regulation of biometric information, and requires that companies obtain written consent before collecting biometric data and clearly disclose how they plan to use the data collected. END
 TITLE: How Can Biometrics Protect Your Identity? CONTENT: How to Protect Biometric Data From Theft\n----------------------------------------\nWhile biometrics can go a long way to protect your personal information, you still need to be vigilant when using this technology. Hackers are always looking for ways to obtain your sensitive information, so no matter how secure or innovative a technology, it's always good to stay on your toes.\nHere are a few tips to stay secure when using biometrics:\n*   **Keep your software updated.** If you use biometric verification on one of your devices, make sure to always keep your software up to date. Software may be continually updated not only to add new features but to address bugs or security vulnerabilities. While you may not know those bugs existed, hackers do, and a recently released update may have already fixed them. Keeping your software up to date can help protect your device from being compromised.\n*   **Always be aware of who is collecting your biometric data.** No matter how you are using biometrics, you'll always want to know who is storing this information. As with any personal data, you'll want your biometric data to be stored safely and securely.\n*   **Opt out if you don't want to use biometrics.** If you're concerned by how your biometric data may be used, you may be able to avoid it entirely by opting for another identity verification method. Apple, for example, allows users to easily opt out of its Face ID facial scan biometrics feature and instead use a conventional password. This may not be an option with everything, but it doesn't hurt to check.\nAs always, if you're worried about protecting your personal information, consider enrolling in Experian's identity theft monitoring, which scans the web and alerts you if it finds that your information has been compromised. END
 TITLE: How to Keep Your Tax Refund Safe From Fraudsters CONTENT: What Happens if Someone Steals Your Tax Refund\n----------------------------------------------\nIf someone uses your personal information to file a tax return in your name, you typically won't know until you try to file yourself or receive some form of communication from the IRS.\nFortunately, tax identity theft isn't as common as it used to be. Between 2015 and 2017, reports of fraudulent tax returns from identity theft victims dropped by 65% due to efforts by the IRS, state tax agencies and the tax community, according to the IRS.\nBut while the IRS and other agencies are getting better at foiling tax identity theft, there were still 242,000 reported cases in 2017, according to the IRS, which means you're still at risk. Here are some warning signs that could indicate a fraudulent tax return:\n*   You get a letter from the IRS about a suspicious tax return, and you haven't filed one yet.\n*   Your e-filed tax return is rejected because of a duplicate Social Security number.\n*   You get a tax transcript in the mail that you didn't request.\n*   You get a notice from the IRS that an online account has been created in your name or your existing account has been accessed or disabled, and you haven't taken these actions.\n*   You get a notice from the IRS that you owe additional tax, your refund is offset or collection actions are taken against you regarding a tax year for which you didn't file.\n*   IRS records show you received income from an employer you don't recognize and for whom you didn't work.\nIf someone uses your information to file a fraudulent tax return, your own return will be rejected as a duplicate. If you're expecting a refund, it could be delayed while you sort out the situation with the IRS. That said, you don't have to worry about missing out on the refund altogether.\nMaking matters worse, tax identity theft could be just the tip of the iceberg. If someone has enough information to file a tax return in your name, it means they could also have opened credit accounts, filed fraudulent health insurance claims and more. END
 TITLE: How to Keep Your Tax Refund Safe From Fraudsters CONTENT: How to Prevent Tax Refund Theft\n-------------------------------\nNo matter how careful you are, it's still possible for hackers to gain access to your Social Security number and other information via data breaches and other means beyond your control. That said, here are some concrete steps you can take to safeguard your tax refund:\n*   **File early**: Federal tax season typically starts at the end of January, and most people receive W-2 forms and other required tax documents around that time. As soon as you have everything you need to file, don't waste any time getting the job done. That way, if someone tries to file a return in your name later, it'll be automatically denied as a duplicate.\n*   **Keep your information secure online**: The internet provides criminals with several opportunities to steal your personally identifiable information. While there's not much you can do to ensure the companies that handle this data will keep it secure, using strong passwords—unique, long strings of letters, numbers and symbols—can make it harder for hackers to access your accounts. If you need help keeping track of all your passwords, use a secure password manager like LastPass or 1Password.\n*   **Learn how to spot phishing attempts**: Phishing attacks are emails and text messages from fraudsters posing as legitimate companies. They'll typically ask you to provide sensitive information, and can include a link or attachment that can install harmful malware to steal your personal information. If you get an email that seems suspicious, don't click on any links or attachments. Even if the email seems to be from a legitimate organization, hover over links to view the URL before you proceed.\n*   **Keep important documents safe**: Some documents, such as your Social Security card and birth certificate, can't be securely stored online or on your computer. Keep important paper documents in a safety deposit box at your local bank or in a fireproof lockbox at home to keep them safe from prying eyes.\n*   **Take your time when choosing a tax preparer**: If you're using a tax professional or online service to file your tax return, do some research before you narrow down your selection. Look up customer reviews or ask for references, so you can make sure the person or service you're using is legitimate and will keep your data secure.\n*   **Watch out for tax scams**: The IRS will never call to threaten you or to demand immediate payment with a specific payment method. Nor will they demand you pay taxes with no questions asked or the right to appeal. If you get such a call from someone claiming to be an IRS agent or someone from a tax preparation firm, it's likely a scam. Hang up and call the IRS or business in question to confirm.\nAs you take these steps, it's still possible to fall victim to tax identity theft, but criminals will have a much more difficult time succeeding. END
 TITLE: How to Keep Your Tax Refund Safe From Fraudsters CONTENT: What to Do if You Think Someone Stole Your Tax Refund\n-----------------------------------------------------\nCall the IRS Identity Protection Specialized Unit right away at 800-908-4490. Create a file with every piece of paperwork you can get your hands on, dating back several years, to help prove you are who you say you are. File a police report and an IRS ID Theft Affidavit Form 14039. Be patient. Your refund will be delayed, and if that delay causes you financial hardship, you can appeal through the IRS Taxpayer Advocate office.\nOnce you've taken this first step, here are some other things to do if you're a victim of tax identity theft:\n*   **Contact the Federal Trade Commission (FTC)**: The FTC doesn't investigate tax identity theft but can provide resources for you to assist in the process. Also, consider filing a police report in case you need it later to prove that someone is using your identity for more than tax fraud.\n*   **File a paper return**: Though someone has filed a fraudulent return in your name, you still have to file the correct one. Submit your return and collect your refund or pay what you owe on time to avoid penalties and interest.\n*   **Consider freezing your credit**: Freezing your credit will prevent anyone from accessing your credit reports, including creditors. If the person who fraudulently filed your tax return tries to open new credit accounts in your name, a credit freeze will stop them in their tracks. Alternatively, you can place a fraud alert on your credit reports, which encourages creditors to call you to verify your identity before approving a credit application.\n*   **Check your open accounts**: If someone has your Social Security number, they could also have access to your financial accounts. Check your bank, credit card and investment accounts to make sure there aren't any unauthorized transactions. If you find any, report them immediately to the institution.\n*   **Request an identity protection PIN**: If you live in an eligible state or are a confirmed tax identity theft victim, you can receive a six-digit identity protection PIN from the IRS. This PIN adds an extra level of security when you or someone else tries to file a tax return in your name. Without it, an e-file return will be automatically rejected, and a paper return will be delayed until the IRS can verify the PIN. END
 TITLE: How to Keep Your Tax Refund Safe From Fraudsters CONTENT: Keep an Eye on Your Credit Score and Reports\n--------------------------------------------\nIf someone has enough of your personal information to file a tax return in your name, they also could be opening fraudulent credit accounts with your data. Check your credit score regularly in case there's a sudden, unexplained drop. If this happens, it could be a sign that you're a victim of identity theft.\nAlso, get a copy of your credit report at least once a year to look for fraudulent accounts. If you find something, your Social Security number could be compromised. END
 TITLE: How to Protect Your Identity After a Burglary CONTENT: How Your Personal Data Can Be Stolen From Your Home\n---------------------------------------------------\nOnce in your home, there are a number of places a thief can find your personal data:\n*   **Mail**: A thief may grab paper statements sent from your bank, credit card issuer or deposit accounts. This mail contains valuable information the thief can use to buy things online and over the phone, or make duplicate cards to shop from brick-and-mortar stores. Mail that contains your Social Security number and date of birth (which is typically on letters from the IRS, medical providers and the Social Security Administration) is also highly prized by identity thieves.\n*   **Laptop or computer**: If your laptop or computer is not password-protected, anybody in possession of it has a window into your stored information. To find it, somebody could search your hard drive for keywords, such as \"credit card accounts,\" \"medical insurance\" and \"2018 taxes.\" If login information for online retailers is saved in your browser, that can also be used.\n*   **Private documents**: There is plenty of other paperwork you definitely do not want a stranger to access. Such documents include:\n    *   Birth certificates and Social Security cards\n    *   Passports and expired driver's licenses\n    *   Estate planning paperwork\n    *   Tax returns\n    *   Property deeds and home appraisals\n    *   Banking and investment documents\n    *   Marriage certificates, divorce papers and adoption forms\nThe more of your personal identification information a thief has, the easier it will be to \"become\" you. To open new credit card accounts, for example, the person will apply with your name, Social Security number and birth date, but will list their own mailing address. The card will be sent to them, and after using it, they won't pay the bill. Because the account is associated with your name and Social Security number, it will show up on your consumer credit report. You may not learn about the crime until you check your credit report, only to find a large and unpaid debt in your name. END
 TITLE: How to Protect Your Identity After a Burglary CONTENT: What to Do After a Burglary\n---------------------------\nThankfully, you can take steps to help prevent identity theft from happening after a burglary. You do have to move fast, though:\n*   **File a police report.** Contact your local law enforcement to file a report regarding the robbery. You will have the opportunity to list everything that was stolen, including anything that helps a thief commit identity theft. In the event that identity theft does occur, you will have the report number, which will help you with disputes.\n*   **Secure your credit reports.** Add a fraud alert to your report to inform lenders that they need to take extra precautions before approving any new credit requests. You can add it to your report with one of the credit bureaus—Experian, Equifax or TransUnion—and the other two will follow suit. A regular fraud alert will remain in effect for 90 days, but if you have a police report and submit it to the credit bureau, you can request it to last for seven years. You may also add telephone numbers for a lender to use to confirm your identity before granting a loan, line of credit or credit increase. Another option is a security freeze, which prevents lenders from accessing your credit report without your consent. To add it, you would notify each of the bureaus separately. Just be aware that if you're seeking a credit product, the freeze can delay the process since you'll have to unfreeze it first.\n*   **Review your credit reports.** As soon as you can, check all three credit reports from the different credit bureaus, and check them on a regular basis going forward. This way you'll know if there is any fraudulent activity before a debt gets out of hand.\nWhat to Do if You Suspect Identity Theft\n----------------------------------------\nIn the event that you suspect that identity theft has already started, take immediate action:\n*   **Contact your credit card issuers.** If your credit cards were stolen or the account information compromised, call the issuers right away. They will suspend the accounts, make the cards and account numbers unusable, and send you new cards with different numbers. Be sure to update your recurring payments with the new card information as soon as possible to avoid missed payments.\n*   **Notify your banks.** Inform your financial institutions where you have savings, checking and investment accounts that you were burglarized. As with the credit card issuers, those banks will take measures to protect you against potential and current fraudulent activity.\n*   **File a Federal Trade Commission (FTC) report.** To streamline the reporting and disputing process, the FTC has developed an easy, step-by-step guide to deal with the aftermath of having your identity stolen and used.\n*   **Dispute fraud-related information.** If you spot what you believe could be fraudulent information on your credit report, contact the company that is reporting it. After explaining that you've been a victim of identity theft and that you did not open the account or run up the balance, they may stop reporting the account to the credit bureaus. If they continue, provide them with a copy of your FTC Identity Theft Report. The Fair Credit Billing Act made it so you are not responsible for fraudulent debts, so if it continues to appear, dispute it with one of the credit bureaus.\nFinally, prepare for the long haul. Because identity theft activity can pop up at any time, it can take months or even years before you are confident that you're in the clear. From this point forward, read all credit card and checking account statements carefully. Identity thieves may test out their ability to make purchases in someone else's name with small, hard-to-notice transactions. Check your credit report on a regular basis too. Consider using Experian's CreditWorks℠ Basic plan where you can view your report once a month, for free. This will empower you to stay on top of any unauthorized activity. END
 TITLE: How to Protect Your Identity After a Burglary CONTENT: What to Do if You Suspect Identity Theft\n----------------------------------------\nIn the event that you suspect that identity theft has already started, take immediate action:\n*   **Contact your credit card issuers.** If your credit cards were stolen or the account information compromised, call the issuers right away. They will suspend the accounts, make the cards and account numbers unusable, and send you new cards with different numbers. Be sure to update your recurring payments with the new card information as soon as possible to avoid missed payments.\n*   **Notify your banks.** Inform your financial institutions where you have savings, checking and investment accounts that you were burglarized. As with the credit card issuers, those banks will take measures to protect you against potential and current fraudulent activity.\n*   **File a Federal Trade Commission (FTC) report.** To streamline the reporting and disputing process, the FTC has developed an easy, step-by-step guide to deal with the aftermath of having your identity stolen and used.\n*   **Dispute fraud-related information.** If you spot what you believe could be fraudulent information on your credit report, contact the company that is reporting it. After explaining that you've been a victim of identity theft and that you did not open the account or run up the balance, they may stop reporting the account to the credit bureaus. If they continue, provide them with a copy of your FTC Identity Theft Report. The Fair Credit Billing Act made it so you are not responsible for fraudulent debts, so if it continues to appear, dispute it with one of the credit bureaus.\nFinally, prepare for the long haul. Because identity theft activity can pop up at any time, it can take months or even years before you are confident that you're in the clear. From this point forward, read all credit card and checking account statements carefully. Identity thieves may test out their ability to make purchases in someone else's name with small, hard-to-notice transactions. Check your credit report on a regular basis too. Consider using Experian's CreditWorks℠ Basic plan where you can view your report once a month, for free. This will empower you to stay on top of any unauthorized activity. END
 TITLE: How to Lock Your Credit CONTENT: How Does Locking Your Credit Work?\n----------------------------------\nProcedures for setting up credit-locking services vary among the three bureaus:\n*   Experian offers credit locking as part of its CreditWorksSM Premium subscription service, which also includes:\n    *   Monthly access to updated credit reports from all three bureaus\n    *   Notifications of new credit activity at any of the three bureaus (to help detect unauthorized actions)\n    *   Up to $1 million in identity theft insurance\n    *   Phone assistance from Experian credit and fraud resolution experts\n*   Last year, as the free 12-month credit freezes it provided after its 2017 data breach were about to expire, Equifax announced that it would provide credit locks free to consumers starting this year.\n*   TransUnion includes credit locking in its free TrueIdentity subscription service, which includes monthly access to TransUnion credit reports and up to $25,000 in ID theft insurance.\nEach bureau requires proof of identity as part of its credit lock setup process. END
 TITLE: How to Lock Your Credit CONTENT: What's the Difference Between a Credit Lock and a Credit Freeze?\n----------------------------------------------------------------\nWhile the end results are similar, credit locks and credit freezes are significantly different. The major differences are as follows:\n*   Credit freezes are free, and their availability is mandated under federal law. They may be obtained by phoning or sending mail to Experian, Equifax or TransUnion. Unlike credit lock services, you can request credit freezes for your children under the age of 16, as well as for yourself.\n*   The credit bureaus are required to complete a freeze on your credit information within 24 hours of receiving a phone request and must lift the freeze within one hour following a phone request.\n*   When you request a credit freeze from a given bureau, it will give you a PIN that you must use when requesting the freeze's removal. If you cannot supply your PIN, the freeze can still be lifted, but additional identity verification will be needed, and the one-hour response requirement is removed.\n*   Credit locks let you control access to your credit reports directly, via smartphone apps or a secure website.\n*   After registering with each bureau and verifying your identity with them, you can turn access to your credit files on and off instantly via smartphone app or online, with no delays or PINs, when you lock your credit.\nA convenience of credit lock is that it enables you to coordinate with lenders (at your bank or credit union, an auto dealership, or when seeking instant credit at a retailer, for instance) to enable access to your credit score when they need it to process your loan application, and then turn access off again when they finish.\nBecause you control the accessibility of your credit file directly, credit locks can eliminate delays in blocking access to your data if you notice suspicious activity because there's no 24-hour turnaround, as with a credit freeze. Credit locks make it easier to unblock your data when you want a lender or other creditor to be able to check your credit, and they make it less likely you'll forget to re-block the data after an authorized credit check is performed.\nWhen either a credit lock or credit freeze is in effect, access to your credit file is blocked for purposes of credit checks related to loan and credit applications, but certain entities are still permitted to check your file, including the following:\n*   You (you can always view your own credit report)\n*   Creditors with whom you have a business relationship at the time the lock or freeze is activated\n*   Landlords or rental agencies conducting background checks\n*   Phone companies and utilities\n*   Debt collection agencies trying to collect payments\n*   Child support agencies seeking to set the amount of child support\n*   Lenders and credit companies who have prescreened you for credit offers\n*   Insurance underwriters acting with your authorization\n*   Potential employers you have granted permission\n*   Government agencies acting according to court orders or warrants END
 TITLE: How to Lock Your Credit CONTENT: When Should I Lock My Credit?\n-----------------------------\nIf you know or suspect your Social Security number or other personal identification information has been exposed in a data breach, consider locking or freezing your credit. A credit lock may be preferable if you plan to apply for loans or credit cards in the months and years ahead and want the ability to block and enable access to your credit files on demand.\nAs long as credit fraud and identity theft remain causes for concern (and they won't be going away anytime soon), using credit locks is a good precautionary move as well.\nBy blocking access to your credit files, credit locks give you the same benefits as credit freezes in terms of pre-empting creation of new loan accounts in your name, but with a greater degree of personal control and convenience. END
 TITLE: Is It Better to File Bankruptcy Before or After Marriage? CONTENT: How Marriage Can Affect Your Debt and Credit\n--------------------------------------------\nYou are personally on the hook for any debt you incurred before you said \"I do.\" After you get married, however, the state you live in as well as the type of debt you take on will determine who is responsible for debts.\nIf you live in a community property state, both you and your spouse have an equal obligation to repay any debt you incur during your marriage. In a common law state, only debt that benefits your marriage or has the names of both partners on it will be a shared responsibility.\nNow that you know how marriage may affect debt, you may be curious how it impacts credit. Since marriage doesn't merge credit reports, your credit will remain yours and your spouse's credit will remain theirs.\nHowever, this doesn't mean one partner's credit will have no impact on their spouse. If one of you has poor credit, it may hinder your search for an affordable mortgage, car loan or any other debt that would benefit from a cosigning spouse. END
 TITLE: Is It Better to File Bankruptcy Before or After Marriage? CONTENT: When Does It Make Sense to File for Bankruptcy Before Marriage?\n---------------------------------------------------------------\nYou may want to file for bankruptcy before marriage if you have an unmanageable amount of debt and your soon-to-be spouse does not. By filing for bankruptcy before you marry, you'll likely minimize the damage to your spouse's financial health.\nIn addition, if you'd like to file for Chapter 7, also known as a liquidation bankruptcy, filing before marriage is generally the better option. If you get married after you file, your spouse's income will be considered in addition to yours, which may push you over the Chapter 7 income limit. END
 TITLE: Is It Better to File Bankruptcy Before or After Marriage? CONTENT: When You Might Want to File After Getting Married\n-------------------------------------------------\nIf you and your spouse both have a significant amount of debt, you may want to file for bankruptcy together after you get married. This will allow you to save money on court costs and legal fees because you'll only need to file one case. You'll also save time on meetings with trustees and creditors.\nIt's important to note that if you go this route and you or your spouse has significant property assets, they'll be a part of your bankruptcy sale. In this situation, it's a good idea to file for bankruptcy individually so you can protect these assets. END
 TITLE: Is It Better to File Bankruptcy Before or After Marriage? CONTENT: Does Filing for Bankruptcy Affect Your Spouse's Credit?\n-------------------------------------------------------\nA Chapter 7 bankruptcy will remain on your credit report for 10 years from the filing date, while a Chapter 13 will be there for seven years. When you get married, your bankruptcy will be noted on your credit report, not your spouse's, if you filed for it individually.\nHowever, this doesn't mean your bankruptcy won't affect your spouse in any way. For example, if you decide to take out a mortgage together, your credit may lead to a higher interest rate and less favorable terms.\nIf you filed for bankruptcy jointly with your spouse, both your credit and your spouse's will take a hit. This can make it even more difficult for you two to obtain joint credit. END
 TITLE: Is It Better to File Bankruptcy Before or After Marriage? CONTENT: Doing the Right Thing Can Save You Heartache\n--------------------------------------------\nIn deciding when to file for bankruptcy, weigh your financial health with that of your marital health. The course of action you take may drag down your partner's financial and credit health and, in turn, hurt your relationship. So have a candid conversation and put everything on the table before making your commitment. The good news is that filing for bankruptcy will likely change the way you spend and manage your money. This can help reduce the risk of money-related problems in your marriage and steer you and your spouse toward the right direction financially. END
 TITLE: How to Remove Your Name From a Joint Credit Card CONTENT: Fortunately, it's fairly easy to close a joint credit card, as long as both parties agree to terminating the account. Here are the steps you'll need to follow.\n*   **Pay off the balance.** If you have a balance on your joint credit card, your card issuer will likely require you to pay it off before you close the account. If your issuer doesn't require this, you'll be on the hook for your minimum payments each month until the card is paid off. Continuing to pay off the balance could be challenging if you are closing the account due to a breakup or divorce, so try to come to an agreement with the other account holder to zero-out the balance before shutting the account.\n*   **Consider a balance transfer card.** If you're unable to pay the balance in full before closing the account, you could transfer the remaining amount to a balance transfer credit card in your name. These cards offer a low or 0% introductory interest rate for a set period of time, during which you can pay off the transferred amount. You'll be responsible for paying off the transferred balance, but if you're concerned the other party won't hold up their end of the deal, this move could help protect your credit. Ideally, try to come to an agreement with the other account holder to split the balance.\n*   **Redeem rewards.** If your joint credit card earns rewards, take a close look at your accumulated rewards. If you've earned cash back or points, redeem them before you close the account. You can split them in half with the other borrower or divide them in a different way.\n*   **Call your credit card issuer.** Once you pay off the balance and redeem rewards, call your credit card issuer to let them know you're closing your joint card account and make sure you're meeting all prerequisite terms.\n*   **Confirm closure and monitor the request.** The credit card issuer may send you an email or letter that asks you to confirm your request to close the account. Follow the instructions carefully so the account can be closed as quickly as possible. Check your credit report to make sure it no longer appears there. END
 TITLE: How to Remove Your Name From a Joint Credit Card CONTENT: Can Closing a Joint Credit Card Hurt Your Credit?\n-------------------------------------------------\nIf you've got other credit card debt, closing a joint credit card can cause your credit scores to drop. Losing the available credit on the joint account will affect your credit utilization ratio, or the amount of credit you're using divided by the total amount available. A low utilization ratio helps credit scores, while ratios higher than 30% can hurt them. Credit utilization is the second most important factor in your FICO® Score☉ , behind only payment history.\nYour credit score may eventually take a small hit if you've had the joint credit card for many years. The age of your accounts plays a role in your credit scores, with a longer credit history contributing to a better score. However, if you close the joint account in good standing, it will remain on your account for up to 10 years, so the effect will not be immediate and should be minimal if you maintain good credit habits otherwise.\nThe good news is that while both of your credit scores may drop initially after you close the card, they can return to what they were before, as long as you keep making timely payments and open your own credit accounts that bring up your limit. END
 TITLE: How to Remove Your Name From a Joint Credit Card CONTENT: Wrapping Things Up\n------------------\nIn a perfect world, you'd be able to remove your name from a joint credit card and move on with your life. Since this isn't always possible, you'll likely have to close the account for good. Fortunately, you can do so in a relatively short time period, especially if you and the other borrower can agree on how to pay off the remaining balance. END
 TITLE: What Is a No-Interest Loan? CONTENT: How Does a No-Interest Loan Work?\n---------------------------------\nMost loans require you to pay back the principal amount plus interest, which is essentially the cost of borrowing money. A no-interest loan, however, allows you to skip the interest charges and solely repay the principal amount. At first glance, this may seem like the ultimate deal. The reality, however, is that certain types of no-interest loans charge deferred interest if you don't follow the loan terms exactly, and that could cost you.\nDeferred interest is a delay in interest charges for a set time period. If you pay off your loan balance in full by the end of the no-interest term, you won't pay any interest, deferred or otherwise. In the event you fail to pay off the loan by then, however, you could be on the hook for the retroactive interest charges going back to the day you took out the loan.\nHere's how it works.\nLet's say you buy $5,000 worth of appliances with a zero-interest loan from the retailer. You have plans to pay it off in full before the time period is up—but you unexpectedly lose your job and don't pay the last $1,000 before the no-interest period ends.\nIn this case, you'll likely have to pay interest on the entire $5,000 loan, not just the remaining $1,000 balance. And if the standard interest rate is high, your purchase will likely cost you more than it would have if you'd taken out a traditional loan with interest. END
 TITLE: What Is a No-Interest Loan? CONTENT: What Kind of No-Interest Loans Can I Get?\n-----------------------------------------\nHere are some types of no-interest loans:\n*   **Furniture or appliance loans**: If you're buying furniture or other costly items for your home, you'll likely come across no-interest loan offers at retail establishments. These loans often charge deferred interest, so if you don't pay off these purchases by the set promotional period, you'll pay interest on the entire amount (and then possibly interest on that deferred interest depending on how long it takes you to pay off the entire amount).\n*   **Car loans**: Some car dealerships entice buyers with no-interest auto loans. A zero-interest auto loan may require a shorter loan period, so you may have higher monthly payments, and you could miss out on incentives such as manufacturer rebates. These secured loans with set monthly payments do not charge deferred interest.\n*   **Medical loans**: Medical care can be expensive, especially if you don't have good insurance or any insurance at all. You may find your doctor participates in a no-interest loan program to help make their care more affordable. Just be sure you know the loan details, as these programs may charge a high interest rate if you don't pay your bill in full by a certain deadline.\n*   **Nonprofit loans**: In an effort to help people who need financial help, some nonprofit organizations offer no-interest loans. But you could fall into the same trap of owing interest and other charges if you don't pay back the loan on time. END
 TITLE: What Is a No-Interest Loan? CONTENT: Do I Need a Good Credit Score for a No-Interest Loan?\n-----------------------------------------------------\nThe lender and type of no-interest loan you're interested in will dictate whether or not you need a good credit score. If you're hoping for a no-interest auto loan, for example, know that car dealerships require good to excellent credit.\nNo-interest auto loans and other types of no-interest loans aren't usually an option for people with poor or average credit. Sometimes, however, you may find a no-interest loan that doesn't require a credit check. While this is rare, these types of offers do exist. END
 TITLE: What Is a No-Interest Loan? CONTENT: Are No-Interest Loans a Good Idea?\n----------------------------------\nA no-interest loan may be a good option if you are confident you can repay your balance in full by the end of the no-interest period. If you go this route, keep these tips in mind:\n*   Read all of the fine print carefully so you are aware of the interest rules and any additional fees you could face.\n*   Ask the lender any questions you may have regarding the loan and its terms before you sign the application.\n*   Make it a priority to make every payment on time and in full.\n*   Don't overspend, as the 0% interest rate is only temporary.\nAvoid no-interest loans if you're not sure whether you'll be able to pay off your loan in time to avoid interest. By taking one out when you have many high expenses in the near future, you can trap yourself in a cycle of debt.\nRemember, it's easier to stay out of debt than get out of it. Don't think you can repay your balance on time and avoid interest? You're likely better off with a traditional loan where you pay principal and interest charges from the get-go and have a set repayment period. END
 TITLE: What Is a No-Interest Loan? CONTENT: Consider Your Lifestyle and Financial Situation\n-----------------------------------------------\nIf lenders didn't make any money on zero-interest loans, they wouldn't offer them. These types of offers are quite profitable for them for the obvious reason: Many customers can't make complete their payments by the set deadline and end up paying exorbitant interest charges.\nSo before you take the plunge and agree to a zero-interest offer, take a close look at your budget and lifestyle needs. Are you able to meet the requirements necessary to maintain a 0% interest rate? If not, consider an alternative financing option that is less likely to put you in more debt than you originally anticipated. END
 TITLE: 5 Ways Gen Z Is Putting Itself at Risk for Identity Theft CONTENT: 1\\. Sharing Personal Information With Strangers\n-----------------------------------------------\nWhen you or your child is gaming online, it's easy to start to feel like you know someone. You could be interacting with strangers all over the globe. Multiplayer games and online universes aren't just about on-screen interactions, either. A good headset gives instant opportunity to talk to other players.\nVideo game conversations can lull you into a sense of complacency about how well you know your fellow players—and you might be tempted to share personal information about your real name, where you live and other parts of your life. This is one way online scammers can learn about you and use that information to steal your identity.\nIf you're a parent, do you know who your child interacts with online? Pay attention to where your children hang out online. You don't need to interrogate them, but show a friendly interest in what they're doing and how it works, and they might be willing to be open with you.\n**How to reduce your risk:** Don't share personal information with people online. Full stop. While you can enjoy your time meeting interesting people, you don't want to share personal information. Whether it's credit card information, your name or the name of your favorite pet, keep it to yourself. As a parent, make sure you talk to your child about the importance of privacy and keeping personal information to themselves. END
 TITLE: 5 Ways Gen Z Is Putting Itself at Risk for Identity Theft CONTENT: 2\\. Using a Debit Card for Online Transactions\n----------------------------------------------\nWhether you're shopping or upgrading some in-game equipment, there's a good chance you're spending money online. But are you doing all you can to ensure your information is protected as you buy?\nOne thing you want to watch out for is using your debit card to make these purchases. A debit card puts your own money on the line since purchases typically come directly out of your checking account, and it can take weeks to get your money back if your account is compromised. The last thing you need is your debit card information out there and on the dark web, available to the highest bidder.\n**How to reduce your risk:** A credit card may be a better choice, since the purchase isn't taken directly out of your bank account. And if you suspect fraud on a purchase, you can contact your credit card issuer to initiate a chargeback, which could help you avoid paying for the purchase at all. Also, with a credit card, the scammer won't have access to your bank account information—you can simply cancel the card and get a replacement from the card issuer if your information is compromised.\nAs a parent, it's important to understand what your children are spending money on, and set clear limits with them. Let them know they need your permission before they make purchases, and limit which apps and websites have access to your payment information.\nParents can limit online purchases to one credit card option to more closely monitor what's being spent. If your child wants to make an online purchase with your credit card, enter the information so you can see exactly which websites have your card information.\nBut what if you're not comfortable with a credit card, either? The good news is that you have an alternative. Many websites sell gift cards in brick-and-mortar stores. Head over to the local grocery and buy a gift card, and you're set. No need to share your personal payment information at all (though you will have to provide your address if you're having the purchase sent to your house). END
 TITLE: 5 Ways Gen Z Is Putting Itself at Risk for Identity Theft CONTENT: 3\\. Taking Online Quizzes\n-------------------------\nWatch out for online quizzes that claim to help you discover your personality type or other insights about yourself by asking questions about your pets, favorite food or when you were born. It feels harmless to take these quizzes, but some of them can actually gather information that can help fraudsters access your online accounts.\nWatch out for quiz games too. Some of these purport to offer you the chance to win prizes or money, but then ask for personal payment information that can be sold later.\n**How to reduce your risk:** Be stingy with your personal information. If you like to take quizzes, make sure your accounts are protected with security questions that aren't related to common items like where you live, what high school you attended and other personal information.\nAdditionally, avoid quiz games that require a lot of data to play. Don't give out your Social Security number, and see if you can be paid via PayPal instead of giving your bank information.\nParents should be extremely wary of quiz games that require money. Let your child know you're not going to connect your personal payment methods, and speak to them about the dangers of these games. END
 TITLE: 5 Ways Gen Z Is Putting Itself at Risk for Identity Theft CONTENT: 4\\. Using Public Wi-Fi for Sensitive Transactions\n-------------------------------------------------\nWe like to be connected wherever we go, and we love being able to use free, public Wi-Fi. Whether you're studying for finals at the coffeehouse or you like your kids to have access to online games to keep them occupied while you're shopping or in a meeting, public Wi-Fi can be just what you need.\nThese unsecured networks can be a haven for scammers and fraudsters, though. When you check your bank balance or complete an online shopping order using a public network, you risk someone intercepting the information.\n**How to reduce your risk:** If you're doing something that requires you to enter a password, or if you're engaged in any type of financial transaction, wait until you're on a secured network. Take care of business at home. Set limits for what your kids can access on their devices while you're in public areas. END
 TITLE: 5 Ways Gen Z Is Putting Itself at Risk for Identity Theft CONTENT: 5\\. Not Verifying App Authenticity\n----------------------------------\nNot every app is a good app. In fact, some apps are designed to get as much personal information as possible. Before you download an app or start playing a new game, make sure you know what you're getting into. Verify the app's authenticity.\nAs a parent, you need to know what your children are downloading. Set up payment controls so that your kids can't download paid apps without getting your permission. Additionally, it's good practice to occasionally check your teen or pre-teen's phone or tablet to see what apps they have.\nShared downloading can be another way to stay on top of things. With shared downloading, you get copy of what your child downloads on your own phone. Set up your family mobile and data plan so that you have these types of controls, allowing you the capability to monitor what's going on.\n**How to reduce your risk:** Check reviews of apps from third-party sources. Make sure you're dealing with apps that are legit. You can also use malware blockers and set up your browser to block unsecure connections. This is good practice for parents too. Before you let your child use a laptop or tablet, make sure you set up a browser with ad blockers and other tools to reduce their chances of seeing (and clicking on) shady apps. END
 TITLE: 5 Ways Gen Z Is Putting Itself at Risk for Identity Theft CONTENT: Bottom Line\n-----------\nProtect yourself and your family from problems associated with poor online security habits. Not only can you take solid steps to protect your privacy, but you can also get help. Experian's IdentityWorksSM service will monitor what's happening with your identity, including dark web surveillance, so you know when your information is being sold. As a parent, you can set up credit monitoring for your children as well. With the right tools, you can keep an eye on the situation no matter their age.\nStaying connected is a vital part of today's world—and just about everyone has online interactions. But you still need to be aware of the risks. By taking steps to protect your privacy and reduce the chance of having your information hijacked, you can game, shop and share in relative safety. END
 TITLE: Does Returning Items Affect Credit? CONTENT: Returning Items Might Affect Your Credit Utilization Ratio\n----------------------------------------------------------\nYour credit utilization ratio is usually expressed as a percentage and accounts for 30% of your FICO® Score☉ , the score most commonly used by lenders. So it's important to keep a close eye on it.\nMost experts recommend keeping your utilization ratio below 30% to avoid hurting your scores, and below 7% for the best scores. If you have one credit card and it has a $1,000 limit, for example, try to keep your balance below $300.\nIf you racked up a high balance on your credit card with a few large purchases and then decided to return the items, you could expect a high credit utilization until your returns were processed. This could cause your credit score to go down temporarily.\nBy completing the return before your credit card company reports a high balance to the credit bureaus, you'll avoid a change to your credit scores. If you don't make your returns before your credit is reported, the purchases you plan to return will be included in your balance and raise your credit utilization ratio. END
 TITLE: Does Returning Items Affect Credit? CONTENT: Do You Lose Rewards on Returned Purchases?\n------------------------------------------\nWhen you return an item you bought with a credit card, you'll get your money back, but you'll also lose any credit rewards you may have earned. Anytime you return a purchase, your points or cash back will be deducted from your account.\nIf this weren't the case, making returns would be an easy way to take advantage of rewards systems. Credit card holders could simply rack up spending on purchases, earn rewards and then make returns.\nDon't let the fact that you'll lose rewards keep you from returning items you can't afford or don't want. Remember that you can earn those rewards again when you make purchases down the road. END
 TITLE: Does Returning Items Affect Credit? CONTENT: Make Timely Returns to Keep Your Credit in Good Shape\n-----------------------------------------------------\nGet into the habit of making returns as quickly as possible. Once you decide you don't want or need an item, take or ship it to the store right away. This way, you can avoid temporary increases in your credit utilization ratio and potential drops in your credit score. END
 TITLE: What Happens if I Default on a Payday Loan? CONTENT: Failing to pay back a payday loan comes with a number of serious consequences, including:\n*   **Additional fees and interest**: Depending on where you live and which lender you choose, you may face extra fees if you're unable to repay your payday loan. These fees are referred to as nonsufficient funds (NSF) fees and are charged when you lack the funds to cover a transaction.\n*   **Debt collection activity**: Your lender will attempt to collect payment for you for about 60 days. If you're unable to pay them within this time frame, they'll likely turn to a third-party debt collection agency. You can expect the debt collection agency to call you and send you letters on a regular basis until they receive the money. You'll find that their collection efforts are far more aggressive than those of your lender.\n*   **Damaged credit score**: If you repay your payday loan on time, your credit score shouldn't be affected. On the other hand, if you default on your loan and your debt is placed in the hands of a collection agency, you will see a dip in your score.\n*   **Court summons**: Even if you defaulted on a small amount of money, there is a chance that a collection agency will take you to court. Depending on where you live, this may lead to liens against your property and even wage garnishment.\n*   **Difficulty securing future financing**: Since a payday loan default can stay on your credit report for up to seven years, you may have a tough time getting approved for other loans down the road.\n*   **Arrest threats**: Although it's illegal for a lender to threaten you with arrest or jail, they may do so anyway. If you receive this type of threat, be sure to consult your state attorney general's office right away. END
 TITLE: What Happens if I Default on a Payday Loan? CONTENT: How to Rebuild Credit After Defaulting on a Payday Loan\n-------------------------------------------------------\nThere's no denying that defaulting on a payday loan can bring you a great deal of stress and uncertainty about the future. The good news is that there are ways you can rebuild your credit and reduce the severity of the situation. Here are some tips to help you out.\n*   **Get current on payments**: If you don't have the cash to get current on debt payments, you may want to reduce your expenses or take on a part-time job or side gig. You may also opt for professional help with credit counseling, a debt management plan (DMP) or debt consolidation.\n*   **Pay your bills on time**: Unfortunately, even one missed payment can hurt your credit. So it's imperative to pay all your bills on time. If you're worried you'll forget, sign up for automatic payments or set calendar reminders. This way, you can ensure your mortgage, credit cards, car loans and other bills are paid in a timely manner.\n*   **Consider your credit utilization ratio**: Your credit utilization ratio is the amount of credit you're using relative to the amount of credit available to you. Your credit utilization should be no more than 30%, and the lower, the better. Keeping your spending down and balances low can help you get there.\n*   **Check your credit report regularly**: Make it a habit to monitor your credit report. You can visit AnnualCreditReport.com and get an annual free copy of your Experian, Equifax and TransUnion reports. You can also get your Experian credit report for free every 30 days on sign-in. Look out for any derogatory marks that may be hurting your scores. END
 TITLE: What Happens if I Default on a Payday Loan? CONTENT: You Can Move Forward After Defaulting on a Payday Loan\n------------------------------------------------------\nIf you default on a payday loan, you will have to work hard to rebuild your credit and get over this financial hurdle. There is, however, a silver lining. After going through this experience, you'll likely become a more responsible borrower and go out of your way to prevent similar financial problems in the future. END
 TITLE: How to Dispute Inaccurate Medical Collections on Your Credit Report CONTENT: How Medical Collections Affect Your Credit Score\n------------------------------------------------\nFICO 9, the most recent FICO credit scoring model, as well as the VantageScore® 3.0 and 4.0 credit scoring models, don't weigh medical collections as heavily as other collections. Additionally, if your insurer pays off your medical bill that went to collections, the three major credit bureaus (Experian, TransUnion and Equifax) will remove the collection account from your credit history if they have proof or verification from the collection agency.\nAlthough this may seem like great news, there is one important issue to consider. Different lenders use different credit scoring models—and not all of them use the most recent versions—so you may not know which scoring model is being used when you apply for a mortgage, car loan or any other type of financing. Therefore, you won't have a way of knowing how much weight your medical collection account will carry when a lender is evaluating your creditworthiness.\nKeep in mind that general medical debt will never appear on your credit report; only debt that is in collections will appear. The collection account on your credit report will show the original creditor's name and available contact information for the collection agency (not the name of the medical office or provider).\nBecause medical collections can have a significant negative impact on your credit scores, try to keep your medical bills from ever going to collections in the first place. But if they do end up on your credit report, here's how you can deal with them. END
 TITLE: How to Dispute Inaccurate Medical Collections on Your Credit Report CONTENT: When Do Medical Collections Appear on a Credit Report?\n------------------------------------------------------\nNot every medical collection will be included on your credit report. The three major credit bureaus wait 180 days before adding medical collections to your credit history. The purpose of this six-month grace period is to give you a sufficient amount of time to resolve any errors on your bill, pay your bill, design a payment plan or consult your insurance company so they can take care of it.\nIf you take action within the 180-day period, you can avoid medical bills from taking a toll on your credit scores. On the other hand, if your collection is 180 days old and unpaid, it may be added to your personal credit file and could stay on there for seven years. END
 TITLE: How to Dispute Inaccurate Medical Collections on Your Credit Report CONTENT: Is It Possible to Remove Medical Collections From Your Credit Report?\n---------------------------------------------------------------------\nAccurately reported collections cannot be removed from your credit report. However, medical collections can be inaccurate, and if you believe your medical collections were reported inaccurately to the credit bureaus, you can dispute them with each credit bureau and may be able to get them removed or updated based on verification from the collection agency. END
 TITLE: How to Dispute Inaccurate Medical Collections on Your Credit Report CONTENT: While TransUnion and Equifax have their own processes for disputing credit reports, Experian allows you to do it online, via phone or by mail. The most convenient and efficient way to dispute inaccurate medical collections on your Experian credit report is online through Experian's Dispute Center.\nWhen you dispute the inaccurate collection account, you may be asked which detail on the account you believe is inaccurate, and why you suspect it is inaccurate. If you've paid the bill, payment records from your medical provider and copies of your check or credit card statements are supporting evidence that could be beneficial to your dispute.\nAfter you submit your dispute online, you'll receive alerts from Experian anytime there is a status update. Once completed, your dispute will have one of the following three outcomes:\n*   Your medical collection will be corrected.\n*   Your medical collection will be deleted.\n*   Your medical collection will remain on your credit report as is if it is verified as accurate. END
 TITLE: How to Dispute Inaccurate Medical Collections on Your Credit Report CONTENT: How to Prevent Medical Collections on Your Credit Report\n--------------------------------------------------------\nIt may be easier to prevent medical bills from going to collections and hurting your credit scores than dealing with them when they're already there. Here are some tips to help you do that.\n*   **Understand your health insurance plan.** Take the time to learn the ins and outs of your health insurance plan. By understanding exactly what it does and does not cover as well as what copays you may owe, you'll be less likely to make costly mistakes that lead to medical collections.\n*   **Set up a payment plan.** If you don't have the cash to pay for a medical bill upfront, work with your medical provider to design a payment plan that aligns well with your budget. This way you can pay it off through fixed monthly payments instead of one lump sum. If you go this route, find out if you'll have to pay any interest or additional fees so that you don't face any unwanted financial surprises.\n*   **Consider getting a medical credit card.** Medical providers that don't accept payment plans may be open to medical credit cards. Since these cards usually come with a six- to 12-month interest-free period, it may be a good option if you feel confident that you can pay off your medical bill in that time period.\n*   **Find out if you qualify for an income-driven hardship plan.** If you're on Medicaid, you may be eligible for an income-driven hardship plan. With this plan, you can reduce the amount you owe and qualify for a payment plan with smaller monthly payments than those of a traditional payment plan.\n*   **Pay attention to your credit report**: Get into the habit of checking your credit report on a regular basis.\nWhile medical treatment is essential, it can have a negative effect on your credit scores if you're left with a bill you can't pay. The good news is that there are steps you can take to ensure the medical care you receive doesn't ding your credit scores and hinder your finances. END
 TITLE: How to Protect Yourself Against Card Skimmers at Gas Stations CONTENT: What Is Card Skimming?\n----------------------\nCredit card skimming involves thieves attaching devices on gas pumps, ATMs and other machines that read and gather your card information.\nSkimmers read the magnetic strip on the card, which gives fraudsters the full name on the card, the credit card number and the expiration date. Some thieves even hide small cameras to capture PIN numbers from those using debit cards. They can then either sell your information on the dark web or use it to steal your identity, charge up your credit card or even get access to the money in your bank account.\nIn the past, skimmers could be spotted if you knew to check. The scanner often looked like it was tampered with or it wiggled when you put the card in. Now skimmers are designed to fit snugly over the scanner, making it nearly impossible to tell something is not right.\n### Shimming the Chip Card\nSkimming isn't the only scam at the gas pump. Fraudsters can now target the computer chip embedded in most credit cards. Overall, the computer chip makes cards more secure and are supposed to prevent nefarious activity like skimming. But fraudsters and hackers are very good at staying one step ahead of security measures. Instead of skimming, some now turn to shimming.\nWith this method, a paper-thin device called a shim is inserted directly into the card reader slot (the one that holds your chip-enabled credit card). The shim is loaded with a microchip and flash storage that intercepts the information from the chip on your credit card. The stolen information can then be used to clone the old magnetic strip style of credit card (which are still in use, especially for online purchases).\nShimming is even more difficult to detect than skimming because inserting and removing the shim looks the same as someone inserting and removing a credit card. What makes them even more stealth is that fraudsters can just as easily use a shim inside the gas station's cash register when making another purchase as they can at the gas pump. It's an attack that's hard to catch.\nShimming is still a new practice. So far, it can't clone the CVV number on the card, so a cloned card is less likely to be used for any purchases that require that number. However, it's a good bet the fraudsters will figure out some way to better game the system. END
 TITLE: How to Protect Yourself Against Card Skimmers at Gas Stations CONTENT: How to Avoid Card Skimming\n--------------------------\nEven as fraudsters become more sophisticated in their tactics, you can take steps to avoid becoming a victim of card skimming.\n*   Pay with cash. You might even save some money if the gas station provides discounts for those using cash instead of a card.\n*   Pay inside where it is less likely the credit card terminal has been tampered with.\n*   Use mobile payment options like Google Pay or Apple Pay if they're an option.\n*   Use the chip reader rather than swipe. Shimming is possible this way, but less likely.\n*   Use credit, not debit, whenever possible. If a thief is able to steal your debit card information, they have access to your bank account.\n*   Investigate the card reader to make sure nothing looks or feels unusual. If something doesn't seem right, pay inside and report your concerns.\n*   If possible, only stop at busy, well-lit and well-maintained gas stations. Look for stickers or other signs that the pumps are regularly inspected.\n*   Download the Skimmer Scanner app, which can warn you about a skimmer. Using Bluetooth, the app can alert you if the pump has been tampered with. END
 TITLE: How to Protect Yourself Against Card Skimmers at Gas Stations CONTENT: What to Do if Your Card Has Been Skimmed\n----------------------------------------\nYou should check your credit card bill regularly for any fraudulent charges. If you find anything unknown or unusual, contact your credit card issuer immediately to alert them of the theft and to cancel your card. If you use a debit card, contact your bank right away and ask what steps you should take to safeguard your account.\nIf your card has been compromised, you may want to consider putting a freeze on your credit report to ensure no new accounts are opened in your name. Finally, continue to monitor all of your accounts and check your credit report to watch for any unusual activity. END
 TITLE: Don’t Get Fooled By Scammers This April CONTENT: 1\\. IRS Scams\n-------------\nIf you receive a shady call from someone claiming to be from the Internal Revenue Service, be careful. With these scams, tricksters pose—over the phone and in email—as the IRS and demand money or sensitive personal information, all while threatening arrest. As this type of scam has gained popularity, the IRS has warned consumers that it will never reach out using phone, email, text message or social media to request sensitive personal information. The IRS only contacts consumers via U.S. mail when there is a tax issue. If you receive a suspicious call or email from someone claiming to be from the IRS, make sure not to reply or give them any personal information. You can find more information about what to do if you receive one of these fraudulent calls or emails on the IRS' website. END
 TITLE: Don’t Get Fooled By Scammers This April CONTENT: 2\\. 419 Scam\n------------\nAlso known as the Nigerian Prince scam, the 419 scam is a well-known and sophisticated fraud that has been fooling people around the world for years. The specifics of each fraud vary, but the scams typically involve an email from a self-proclaimed prince or government official offering millions of dollars in exchange for your help getting the money out of their country. After the victims turn over personal records and banking information, fraudsters use the information to impersonate them and steal their money. This type of scam can make you believe that you got lucky and will soon be rich, but typically ends with your money disappearing. Just remember: If you get a random email offering you millions of dollars, the offer is probably too good to be true. END
 TITLE: Don’t Get Fooled By Scammers This April CONTENT: 3\\. Shimming and Skimming\n-------------------------\nSkimming and shimming are scams where thieves attach small devices to credit card readers in an attempt to capture and re-use your card information. Skimming has been around for some time and involves a fraudster installing a device onto a credit card reader to capture your card information when you swipe. Many of these skimming devices—which are commonly installed on gas pumps—will look exactly like normal card readers, making it difficult to know when your information is being stolen. Shimming is similar to skimming, but is used specifically to target chip-enabled cards and chip readers. To avoid having your card information skimmed or shimmed, consider using contactless payment methods like Apply Pay or Google Pay, as these devices cannot capture your information transmitted through this method. Also look out for shady-looking card readers, and whenever in doubt, bring it to a merchant's attention or choose an alternative payment method. Check out this guide from the Federal Trade Commission on how to spot these devices and what to do if you come across one. END
 TITLE: Don’t Get Fooled By Scammers This April CONTENT: 4\\. Malware Tricks\n------------------\nMalware is software that a fraudster can install on your electronic devices to get their hands on your personal information. Once your device is infected, the tricksters will steal whatever they can get—such as personal records, credit card numbers and other sensitive information—and you may never know that it's happening. Scammers typically install malware through some type of trickery, like an email or social media message with a downloadable attachment or link. It's best not to open attachments or links in emails from unknown senders, and periodically run checks on your devices to make sure they haven't been infected. If you suspect something has been installed on your device, do not input any personal information until you've had the device checked out. Refer to this guide to learn how to deal with suspected malware on your device. END
 TITLE: Don’t Get Fooled By Scammers This April CONTENT: 5\\. Veteran Scams\n-----------------\nThese scams target elderly American veterans, and are focused on tricking them out of their pensions or savings. According to AARP, 16% of veterans have been a victim of identity theft, as opposed to 8% of the general public. Fraudsters will entice veterans with pension advances or buyouts and will sometimes try to persuade them to donate to charity, only to then take their victims' identities and money and run. If you're a veteran, be cautious of anyone asking you for money over the phone, in the mail or through email. And make sure to verify the identity of any person or company offering to help you cash out your hard-earned pension. You can check to see whether an individual or organization is accredited by the U.S. Department of Veteran Affairs by doing an accreditation search, and you can find out more information about pension scams and how to spot them on the VA's site.\nIf you think some of your personal information has been compromised, or you want to find out if any fraudulent accounts have been opened in your name, get a free copy of your credit reports and scores to find out what appears in your credit file. Even if no new accounts have been opened in your name, you can also consider running a [free dark web scan](;k_id=_k_CjwKCAjw7MzkBRAGEiwAkOXexFneAl3o86MmvV6R4ql1zYFlwACAtY7aZAKUNCiRZHEl0ePzKSY7nhoCvGwQAvD_BwE_k_&k_kw=aud-494441948877:kwd-353437349978&k_mt=e&pc=sem_exp_google&cc=sem_exp_google_ad_858684474_46242041176_261557567959_aud-494441948877:kwd-353437349978_e_1t2__k_CjwKCAjw7MzkBRAGEiwAkOXexFneAl3o86MmvV6R4ql1zYFlwACAtY7aZAKUNCiRZHEl0ePzKSY7nhoCvGwQAvD_BwE_k_&ref=identity&awsearchcpc=1&gclid=CjwKCAjw7MzkBRAGEiwAkOXexFneAl3o86MmvV6R4ql1zYFlwACAtY7aZAKUNCiRZHEl0ePzKSY7nhoCvGwQAvD_BwE) to see if any of your personal information is floating around the dark web.\nAnother way to protect against any fraudulent accounts being opened in your name is to freeze your credit reports, which will prevent lenders from pulling a copy of your credit report. Experian also offers CreditLock, which allows you to lock and unlock your Experian credit report in real time.\nThe bottom line: Be vigilant with your personal information to ensure you're not a victim of fraud by scammers trying to trick you out of your hard-earned money. In April and always, don't be a fool when it comes to guarding your finances. END
 TITLE: How to Create a Secure Password and Keep Your Online Information Safe CONTENT: 6 Tips for Creating a Strong Password\n-------------------------------------\nCreating a secure password requires a combination of several techniques. Here some tools and rules of thumb to make it easy for you:\n1.  **Use long passwords.** The more characters you use, the harder it is for hackers to crack your password. For example, according to CSO, which analyzes and researches security and risk, a hacker can use an automated botnet (a network of connected devices used for malicious attacks) to guess an eight-character password of mixed case and numbers in as little as 31 minutes. But with a 10-character password using a mix of letters, numbers and symbols, it would take them three years. It's smart to use as many characters as the website allows.\n2.  **Make your passwords easy to remember.** Consider stringing together a few random words. It could be words from your favorite quote, poem or song, or even your favorite food. For better encryption, make a password using just the first letter of each word.\n3.  **But don't make them too simple.** Some hackers use tools that randomly guess passwords using words in the dictionary, so it's even better if you can add in special characters, numbers, capital letters and, if the website allows it, spaces.\n4.  **Use multi-factor authentication (MFA) when you can.** Many larger sites, such as Google and Facebook, let you opt for a two-step login process. Rather than just entering your password, you'll also be required to take a second step to prove your identity, such as entering a code that's texted to your mobile device.\n5.  **Use a password manager.** Experts recommend that you don't use the same passwords for multiple websites because if one is hacked, your other logins on other sites are compromised. Password management tools, such as LastPass and 1Password, store passwords securely so you don't have to remember them all, and they can also generate strong new passwords for you. If you're not ready to give up all your passwords to a third party, go old school and write them in a notebook you keep in a secure place in your house. That still opens the door to thieves if your house is broken into, but it's safer than using the same passwords on different sites or creating a file for passwords on your computer.\n6.  **Create strong passwords and don't change them unless you have to.** While some online systems require you to change your password at set intervals, the National Institute of Standards and Technology reports that people tend to choose weaker passwords when they have to change them often. Don't make that mistake. END
 TITLE: How to Create a Secure Password and Keep Your Online Information Safe CONTENT: 4 Things to Avoid When Creating a Password\n------------------------------------------\nThere are also a few key things to avoid when making a strong password:\n1.  **Avoid using personal information.** If someone knows a few key pieces of data about you, from either public databases or social media, they might try to guess your password using your birthday, kids' or pets' names, or other personal details. When you create your password, don't use personal information that would be easy for someone to find and guess.\n2.  **Drop the common and default passwords.**It's time to let go of passwords like \"1234,\" \"qwerty\" or \"password.\" They're just too easy for hackers to figure out.\n3.  **Don't use a single word—especially one followed by a single number.** In other words, forget about \"Password1.\" These are also too simple for hackers to guess.\n4.  **Don't reuse passwords.** Try to avoid using the same passwords across different sites, and don't repeat passwords you've previously used. END
 TITLE: How to Create a Secure Password and Keep Your Online Information Safe CONTENT: Other Ways to Protect Your Account Information\n----------------------------------------------\nBeyond creating a secure password, here are some other tactics you can use to keep your digital information safe:\n*   **Read alerts about data breaches.** If a company you do business with sends an email or letter telling you they've had a breach, don't ignore it; review the details so you know what information was compromised. It's also smart to take proactive measures, such as changing your password with that business and locking or freezing your credit.\n*   **Watch out for identity theft.** Regularly check your account statements and credit report so you can spot potential early warning signs of identity theft, such as new accounts or transactions that weren't created by you. You can also use products like Experian's identity theft monitoring, which helps proactively protect your identity.\n*   **Take other digital security measures.** Make sure your home Wi-Fi is password-protected. It's also a good idea to use antivirus software that regularly scans for malware. Make sure to always install security updates on your computer when prompted. Also, keep an eye out for phishing attempts; this is when a hacker sends an email posing as a business and asking for your login information or other personal data. Don't open attachments or click links in emails from senders you don't recognize.\nWhile there is no way to make your online accounts 100% hacker-proof, taking these easy steps to create stronger passwords can help keep your digital accounts more secure. END
 TITLE: Does My Child Have a Credit Report? CONTENT: How to Find Out Whether Your Child Has a Credit Report\n------------------------------------------------------\nUnless you've taken action to help your young child develop a credit history, he or she most likely doesn't have a credit report. These reports begin when a person applies for and receives credit products, such as loans and credit cards. Once that happens, the lender sends information about the activity to the three major credit bureaus (Experian, TransUnion and Equifax). At that stage, a credit report is born.\nMinors can't sign a loan or credit card contract, but they can become authorized users on their parents' credit card accounts. If you add your child to your account as an authorized user, a credit report will be generated in his or her name. In most cases the issuer will send information about the account to all the cardholders' reports, no matter their ages. As long as you pay the bills on time and don't carry big balances, it can be a savvy technique to jump-start a minor's credit history.\nThe other reason your child could have a credit report is as a result of identity theft. If someone else used your child's name and Social Security number to open accounts, they will have a credit file—and odds are it won't be listing attractive information. Typically thieves borrow money and don't repay, so the accounts go delinquent. Late payments will be posted to your child's credit report, and when the lender still doesn't get paid, it will refer the debt to collections, which will also show up on your child's reports.\nGood or bad, it's time to see what's going on by checking your minor child's credit reports. Gather the following:\n*   A copy of your driver's license or other government-issued identification card\n*   Proof of your address, such as a utility bill or an insurance statement\n*   A copy of your child's birth certificate\n*   A copy of your child's Social Security card\nWrite to each of the credit bureaus and request your child's credit report. Specify his or her full name, date of birth and address for the past two years. For an Experian report, you'll need to complete a request form and include it with the items above. If you're concerned about sending information by mail, you can upload your information online.\nIn the event that no credit report has been created for your child, Experian will send a notice letting you know. If there is, one will be provided to you. END
 TITLE: Does My Child Have a Credit Report? CONTENT: Warning Signs of Child Identity Theft\n-------------------------------------\nIt can take a lot of time before identity theft is detected, and by the time it is, your child's report may be riddled with fraudulent and past-due debts. Pay attention to the common warning signs of child identity theft:\n*   Credit card statements or bills addressed to your child\n*   Collection notices listing your child as the debtor\n*   Calls to your home from collection agencies, asking for your child\n*   An increased amount of mail addressed to your child from mysterious companies\n*   An inaccurate medical bill or statement of benefits associated with your child's name\n*   A notice that your child owes back income tax\n*   Preapproved credit offers in your child's name\nWatch out for these red flags. Some may be waving before any wrongful account shows up on your child's credit reports. END
 TITLE: Does My Child Have a Credit Report? CONTENT: What to Do if Your Child Has a Credit Report\n--------------------------------------------\nIf your child has a credit report containing only accurate information, you don't have to do anything. Let the positivity build!\nOn the other hand, if your child's credit report comes back with evidence of fraud, take action:\n*   **Contact the credit reporting bureaus.** File a dispute. Include supporting documentation, and be clear that your child is a minor. Send a completed copy of the Federal Trade Commission's (FTC) Uniform Minor's Status Declaration Form. Ask the bureau to remove all inquiries, accounts and collection agency notices from your child's credit report.\n*   **Report the crime.** You may file a police report, either over the phone or at your local station. Another way you can report the fraud is through IdentityTheft.gov, which takes the place of a police report. Your report will go directly to the FTC.\n*   **Freeze your child's credit file.** Whether you spot proof of fraud or not, you can have your child's credit report locked down with a credit freeze. Once in place, it prevents potential lenders from accessing a credit report, so it should prevent a crook from opening an account in your child's name.\nAlthough discovering that your child has been a victim of identity theft is scary and upsetting, clearing it up shouldn't take long. After all, it's hard to argue with a date of birth. To know whether fraudsters have already established credit in your child's name, consider using Experian's free minor report check. This free service will find out whether your child is associated with an Experian credit file, and will help you with resolution.\nAnd if you've chosen to give your child the gift of excellent credit data by sharing your credit card, wonderful. Just keep an eye on your child's credit report to ensure that the account is always being listed accurately and nothing amiss appears. Then when your child is no longer a minor and the report can be released, the history of that account will shine brightly. END
 TITLE: What Is Child Identity Theft? CONTENT: How Child Identity Theft Can Happen\n-----------------------------------\nChild identity theft comes in many shapes and sizes. And while most children do not have multiple bank accounts or lines of credit, they still have a plethora of personal information that fraudsters can get their hands on.\nFrom social media credentials to social security numbers, fraudsters will steal anything and everything they can. Compromised logins and passwords can give them access to other online accounts, and having social security numbers can allow them to open new accounts in your child's name.\nWhat thieves get when they steal your child's identity depends on what type of accounts or information your child shares. Here are some popular ways fraudsters get their hands on people's personal information:\n*   **Phishing scams.** Phishing is when fraudsters use email or the telephone to trick you into giving them your personal information.\n*   **Hacking.** Hackers are constantly trying to infiltrate large systems to steal user data. Both small and large companies can be hacked, and if your child has an account with a company that's been hacked, their information may be exposed.\n*   **Theft in the family.** Unfortunately, a good amount of child identity theft occurs within families. Family members can take important documents and open accounts in children's names, and the close proximity can make it easy to go undetected. Be careful to secure your child's personal documents, even around family and friends. END
 TITLE: What Is Child Identity Theft? CONTENT: How to Know Whether a Child's Identity Has Been Stolen\n------------------------------------------------------\nIt's tough to know if your child's identity has been stolen. In some cases, you might not even find out until your child goes to apply for their first line of credit. Since children aren't actively using and checking their credit score, there's a low likelihood that they'll find out about their compromised identity until something bad happens.\nThere are some things that could tip you off that you child's information got into the wrong hands:\n*   **If your child receives mail from a creditor or debt collection agency.** This may mean a fraudster got their hands on your child's information and opened accounts in their name. If you know your child has no accounts, this is a large red flag that their identity has been compromised.\n*   **If you check their credit and see unknown accounts.** If for any reason you check your child's credit reports, look to see if there are any accounts you don't recognize. Remember that credit histories are not started until your child opens an account in their name (or you do it for them to give them authorized-user status), so if they have a credit report but have never opened a line of credit, that may mean their information has been compromised.\n*   **Your child's online accounts have been posting spam.** If a fraudster gets ahold of your child's login credentials for an online account, they could send spam emails or message. If this happens to your kid, this could be a sign that one of their accounts has been hacked.\nUnfortunately, if you've noticed any of these things, your child's personal information has probably already been compromised. The sooner you catch these breaches the better, so be vigilant and think about creating an identity monitoring plan for your child. END
 TITLE: What Is Child Identity Theft? CONTENT: How to Prevent Child Identity Fraud From Happening\n--------------------------------------------------\nBeing proactive is the best way to protect your child's personal information and identity. Once your child's personal information is stolen, there is almost nothing you can do to get it back.\nHere are a few things you can do to help protect your child's identity from fraudsters:\n*   **Educate your child**. Education is the simplest prevention method. Teach your child what to look for and how to conduct themselves responsibly online. Starting them early with these habits will protect them through their childhood and into their adult years, when it will become increasingly important to know how to protect themselves.\n*   **Enroll in an identity monitoring program.** Consider enrolling in a credit and identity monitoring program. Experian's IdentityWorksSM family identity theft monitoring plans help you keep an eye on your whole family's personal information to make sure it isn't being misused. Requesting a minor's credit report will check to see if your child has an Experian credit file, which could indicate fraud. Periodically checking to see if your child has a credit report can also help you keep track of any new accounts or unusual activity appearing under their name.\n*   **Freeze your child's credit reports.** Freezing your child's credit reports can help you make sure no new accounts are opened in their name. This is a great option if your child is still young and has no plans to open any credit accounts in the near future. Credit freezes stop potential lenders from accessing your credit reports, making it nearly impossible for a fraudster to open a new account in your name, even if they have your personal information.\nWhat to Do if You Believe Your Child's Identity Has Been Stolen\n---------------------------------------------------------------\nIf you've confirmed that your child's identity has been compromised, try to remain calm. Depending on what type of information was stolen, there are a few different routes you can take to remedy the situation.\nIf your child's Social Security number was compromised, contact one or all of the three major credit bureaus (Experian, TransUnion and Equifax) to lock your child's credit file and protect against fraudsters continuing to use their information. If an account was opened in your child's name, you'll also want to contact the bank or institution that the account was opened with. Be prepared with all the documents and evidence that will be needed to prove that your child is yours and that they did not open the account in question.\nIf another aspect of your child's information was taken, like their usernames or passwords, make sure they log in to all their online accounts and change their credentials as soon as possible. Also check that a hacker hasn't used any of their accounts for malicious purposes. Check for fraudulently sent emails and messages, because many times hackers will send malicious emails or messages from compromised accounts.\nOnce you've taken the appropriate steps to secure your child's credit reports and accounts, you should also consider reporting the identity theft to the proper authorities. You can make a report the illegal activity to the Federal Trade Commission. You can also contact the Identity Theft Resource Center, a nonprofit organization focused on helping victims of identity theft resolve their cases. END
 TITLE: What Is Child Identity Theft? CONTENT: What to Do if You Believe Your Child's Identity Has Been Stolen\n---------------------------------------------------------------\nIf you've confirmed that your child's identity has been compromised, try to remain calm. Depending on what type of information was stolen, there are a few different routes you can take to remedy the situation.\nIf your child's Social Security number was compromised, contact one or all of the three major credit bureaus (Experian, TransUnion and Equifax) to lock your child's credit file and protect against fraudsters continuing to use their information. If an account was opened in your child's name, you'll also want to contact the bank or institution that the account was opened with. Be prepared with all the documents and evidence that will be needed to prove that your child is yours and that they did not open the account in question.\nIf another aspect of your child's information was taken, like their usernames or passwords, make sure they log in to all their online accounts and change their credentials as soon as possible. Also check that a hacker hasn't used any of their accounts for malicious purposes. Check for fraudulently sent emails and messages, because many times hackers will send malicious emails or messages from compromised accounts.\nOnce you've taken the appropriate steps to secure your child's credit reports and accounts, you should also consider reporting the identity theft to the proper authorities. You can make a report the illegal activity to the Federal Trade Commission. You can also contact the Identity Theft Resource Center, a nonprofit organization focused on helping victims of identity theft resolve their cases. END
 TITLE: What to Know About the Effects of Identity Theft CONTENT: Depending on the type of theft that occurs, you could be affected in several ways. The least tangible but potentially the most damaging is the emotional toll. When someone commits identity theft, they literally assume your identity.\nThey can then do any number of things in your name, including opening new credit accounts, filing a fraudulent tax return, committing other forms of fraud and more.\nBeing victimized in this way can leave you feeling violated, anxious and unsafe. In some cases, it can be difficult to prove that the identity theft occurred, giving way to anger and frustration. The stress can even take a toll on you physically.\nFor example, a study by the Identity Theft Resource Center found that 41% of identity theft victims experience sleep disturbances, and 29% develop other physical symptoms, including aches and pains, heart palpitations, sweating and stomach issues.\nOther potential effects include:\n*   **Damaged credit**: If an identity thief steals your Social Security number (SSN), opens new accounts in your name and never pays, it could ruin your credit history. Not only can this impact your ability to get credit, but it can also hurt your job prospects and increase your auto and homeowners insurance premiums.\n*   **Tax debt**: If someone assumes your identity through your SSN on job applications and doesn't pay their taxes, you could end up with a hefty bill. It's also possible for a fraudster to file a return in your name, submitting erroneous information to get a refund and leaving you to deal with the aftermath.\n*   **A criminal record**: If someone uses your identity to commit other crimes and gives your information to police when they get arrested, you could be the one to end up with the rap sheet.\n*   **Lost time and money**: It can take years to recover from identity theft, and you may lose money in the form of expenses incurred by the identity thief, time off work and more. END
 TITLE: What to Know About the Effects of Identity Theft CONTENT: How Long Can It Take to Recover From Identity Theft?\n----------------------------------------------------\nThe recovery time for identity theft can vary widely, depending on the type of fraud that occurs. With credit card fraud, for instance, where someone uses your credit card without your permission but doesn't get access to more sensitive information, it may just be the amount of time it takes you to report it and get a new card in the mail.\nWith more serious forms of identity theft, however, it can take much longer. If someone steals your SSN to open a credit account in your name, for instance, it can take months to work with the creditor and credit reporting agencies to dispute it and prove it wasn't you.\nAnd if someone manages to use your identity to incur tax debt and commit other crimes and major violations, it could take years of work to undo the damage. END
 TITLE: What to Know About the Effects of Identity Theft CONTENT: How Identity Theft May Affect Your Credit\n-----------------------------------------\nAs previously mentioned, identity thieves may use your SSN to commit what's called new account fraud, where they open unauthorized credit accounts in your name. In most cases, it may be a credit card or loan, but it can also be a cell phone plan or utility account.\nIf the thief succeeds in opening the new account and doesn't make payments, it could wreak havoc on your credit history, making it difficult to get approved for credit, get a job, qualify for low insurance rates and more.\nRecovering from these effects can take time, but it is possible to work with creditors and the credit reporting agencies to set the record straight. END
 TITLE: What to Know About the Effects of Identity Theft CONTENT: How to Recover From Identity Theft Faster\n-----------------------------------------\nThe time it takes to recover from identity theft not only depends on the severity of the fraud, but also on how quickly you spot it and the time and effort you put into addressing it. Here are some tips to help:\n*   **Learn to recognize the signs**: It's not always possible to find out how the thief gained access to your information, but signs that the fraud has occurred can include notifications of unauthorized purchases, incorrect information on your credit reports, denial of credit, unexpected credit card, loan or tax bills, and a failed background check. If any of these happen, take it seriously.\n*   **Get help**: Taking down a criminal on your own may sound Hollywoodesque, but you're better off enlisting the help of people who have the right tools. For starters, report the crime to local law enforcement, the Consumer Financial Protection Bureau and the Federal Trade Commission. Also, request assistance through Experian, one of the other credit reporting agencies (Equifax or TransUnion), or an identity theft protection service.\n*   **Add a fraud alert or freeze your credit reports**: You may be able to stop an identity thief in their tracks by restricting their ability to use your SSN to open new credit accounts. With a fraud alert, creditors will typically flag any application with your SSN and call a number you provide in the alert to verify your identity. A credit freeze, on the other hand, stops all creditors from being able to view your credit reports entirely.\n*   **Don't let up**: Reporting identity theft is just the first step of the process. As you work with creditors, the police and credit reporting agencies, it's critical that you be your best advocate and stay on top of the process until it's resolved. END
 TITLE: What to Know About the Effects of Identity Theft CONTENT: Take Steps to Prevent Future Identity Theft\n-------------------------------------------\nDealing with the effects of identity theft can be mentally, emotionally and physically exhausting. Whether you've already been victimized or you just want to be prepared, it's important to do whatever you can to reduce the risk of future identity theft. Here are some ways to protect your information:\n*   Avoid giving out personal information to just anyone\n*   Shred your documents\n*   Check your credit score and reports regularly\n*   Create strong online passwords\n*   Keep an eye on your online financial accounts\n*   Consider an identity theft protection service\nWhile these efforts won't eliminate the threat of identity theft entirely, they can do a lot to limit your exposure. END
 TITLE: How to Find Scholarships to Pay for College CONTENT: There are several categories of scholarships that may be available to you, depending on your situation. Here's how each works and where you can get them.\n*   **Need-based scholarships**: You may qualify for one of these scholarships if you can demonstrate financial need, regardless of other factors. They're commonly awarded to students who come from low-income households.\n*   **Merit-based scholarships**: These are typically tied to your academic, athletic or artistic performance. Some merit scholarships also factor in your financial need.\n*   **State-based scholarships**: Some scholarships are offered only to students who live in certain states. Depending on the offer, you may be able to receive one from the state or a private organization that operates in the state.\n*   **Community service scholarships**: If you spend a lot of time serving your community, there may be scholarships in your area available to reward you for making your community a better place.\n*   **Military scholarships**: Each branch of the Armed Forces offers scholarships for service members, veterans and even their families.\n*   **Demographic-based scholarships**: Some scholarships are designed specifically for students based on their heritage, gender, orientation and more.\n*   **Unusual scholarships**: If you have an unusual hobby or skill, there may be a scholarship out there that rewards it. For example, a town in Arkansas hosts a duck calling contest every year and awards the winner with a scholarship. You may also be able to get scholarships for speaking a constructed language like Klingon, working as a golf caddy and more. END
 TITLE: How to Find Scholarships to Pay for College CONTENT: Where to Look for Scholarships\n------------------------------\nYou'll typically want to begin your scholarship search with your college or university, then also look into other organizations. Here are some places you can start:\n*   Your college's financial aid website, and more specifically your individual major or concentration\n*   Your high school (if you are a junior or senior)\n*   U.S. Department of Labor's scholarship search tool\n*   Federal and state agencies\n*   Military recruitment offices\n*   Local religious and community organizations and businesses\n*   Associations related to your area of study\n*   Ethnicity-based organizations\n*   Scholarships.com\n*   Fastweb\n*   CollegeBoard\n*   Sallie Mae\n*   Chegg\n*   Cappex END
 TITLE: How to Find Scholarships to Pay for College CONTENT: Make Sure You Fill Out Your FAFSA\n---------------------------------\nThe Free Application for Federal Student Aid (FAFSA) isn't typically required for scholarships awarded by private organizations. But if you want to receive financial aid through your college or university, you'll need to fill out that application.\nThe FAFSA is also required for other forms of federal student aid, such as grants, work-study programs and even student loans. It may also be compulsory if you want access to state-based aid, such as the Cal Grant offered to students living in California.\nAs such, it's critical that you complete the FAFSA each year before the deadline, which is usually the end of June. END
 TITLE: How to Find Scholarships to Pay for College CONTENT: How to Get Student Loans if You Need Them\n-----------------------------------------\nEven after valiant efforts to get scholarships and pursue other ways to avoid student loans, you may still fall short. If this happens, you may choose to borrow money to cover your remaining expenses. While it's not ideal, it's preferable to ending your education, and there are some steps you can take now to avoid paying more in the future.\nFor starters, it's almost always a better idea to borrow using federal student loans instead of private student loans. Even if you can get a lower interest rate on a private loan, federal loans come with several perks, including:\n*   Student loan forgiveness programs\n*   Loan repayment assistance programs through federal agencies\n*   Income-driven repayment plans\n*   Generous deferment and forbearance options\nYou may also qualify for other benefits as a federal loan borrower. One big example is the moratorium on student loan payments and interest put in place by the Department of Education and later legislation in response to the coronavirus pandemic. Another is the potential of federal student loan forgiveness by executive order, which has been floated as something that may happen in the future under President Biden.\nAll things considered, unless you're confident you won't need any of these perks and you have excellent credit and a solid income, you're likely better off with federal loans.\nIf you're planning to borrow money to pay for school, here are some things you can do to limit the burden:\n*   Fill out the FAFSA to see if you qualify for subsidized loans, which don't accrue interest while you're in school.\n*   If you don't qualify for subsidized loans, consider making interest-only payments while you're in college to avoid having the interest capitalized, or added to your original balance, upon graduation.\n*   Choose an inexpensive school to begin with, or transfer to one if you're already in college and need a less expensive option.\n*   Create a budget to control how much you spend every month.\n*   Avoid borrowing more money than you need.\n*   Look for other ways to avoid student loans, such as working part or full time and applying for grants. END
 TITLE: What Happens to Credit Card Debt When You Die? CONTENT: Who Is Responsible for Credit Card Debt When You Die?\n-----------------------------------------------------\nWhen you die, any debt you leave behind must be paid before any assets are distributed to your heirs or surviving spouse. Debt is paid from your estate, which simply means the sum of all the assets you had at the time of your death. The executor of your estate uses the assets in your estate to pay your outstanding debts. The executor may be someone you named in your will or estate plan or, if you didn't have a will or estate plan, a person appointed by probate court.\nIf you have more debts than you have assets, your estate is _insolvent._ Whether family members must pay your credit card debt in this case depends on several factors.\nAnyone who is a joint account holder on your credit cards can be held responsible for the debt after you die. Joint account holders apply for credit cards together as cosigners or co-borrowers; the credit card company checks both applicants' credit reports when deciding whether to issue credit. Both account holders are equally responsible for paying the credit card balance.\nFew major credit card companies offer joint accounts these days. If you share a credit card account with your deceased spouse, it's more likely that one of you is an authorized user on the other's account. (Check with the credit card issuer if you're unsure which category you fall into.)\nAs an authorized user, you receive a credit card in your name for the account and can make purchases and payments on the card. However, the primary account holder is ultimately responsible for paying the credit card balance. If you're an authorized user on the account of a deceased person, you generally aren't required to take care of the outstanding balance.\nThere's one key exception, however: Community property states typically hold spouses responsible for each other's debts. If you live in a community property state, you may have to pay your spouse's credit card debts after their death, even if you were only an authorized user or the credit card was solely in their name. Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin are community property states, and Alaska gives spouses the option to make their property community. Laws can vary from one community property state to another, so if you live in one of these states, ask an attorney with expertise in estate law in your state what your responsibilities are. END
 TITLE: What Happens to Credit Card Debt When You Die? CONTENT: Next Steps After a Cardholder Dies\n----------------------------------\nWhen a relative or loved one passes away with existing credit card debt, take the following steps to ensure the debt is handled properly.\n1.  Stop using credit cards on which you are an authorized user. (You can keep using credit cards on which you are a joint account holder.) Using a credit card after the primary cardholder's death is considered fraud, even if you are an authorized user. That's why it's a good idea for each spouse to be the primary cardholder on at least one credit card.\n2.  Make a list of the person's credit card accounts. If you aren't sure which accounts the person had, the spouse or executor of the deceased can request a copy of the person's credit report to check.\n3.  Notify the credit card companies of the death. If the card was solely in the deceased's name, you should ask to close the account. If you have a joint credit card account, tell the credit card issuer that one account holder is now deceased. You'll generally have the option to close the account or keep it open in your name only; however, the terms of the credit card agreement, such as the annual percentage rate, may change once you are the sole account holder.\n4.  Notify the three consumer credit bureaus. Credit card companies will report the death to the credit bureaus, but it may not happen immediately. If you don't want to wait, you can report the death to the three major consumer credit bureaus (Experian, TransUnion and Equifax) yourself. This can help ensure that identity thieves don't apply for credit in the deceased's name.  \n    The reporting process may differ slightly for each credit bureau. In general, however, you'll need to supply a copy of the death certificate and the deceased's Social Security number. Unless you are the spouse of the deceased, you'll also need proof that you are the executor of the estate or otherwise authorized to act on the person's behalf.\n5.  Make timely payments on any jointly held credit cards. Even if you don't plan to keep using the card, just one late payment can have a negative effect on your credit score, which may make it more difficult to get credit in your own name going forward. The death of a loved one is a stressful time, so to ensure you don't miss a payment, consider setting up automatic minimum payments on any joint credit accounts.\nIf you are an authorized user on a credit card held by the deceased, do not make any payments on that card. If you do so, the credit card company may legally be able to argue that you have taken responsibility for the entire balance. A missing payment will not reflect on your credit report, only on that of the primary cardholder. If you live in a community property state, consider asking an attorney to clarify whether you should or should not pay the bill.  \nAssets That Are Protected From Creditors\n----------------------------------------\nIf you discover that a spouse or other relative's credit card debt was bigger than their estate, will you have to empty your bank account or hand over your spouse's life insurance to pay the credit card companies?\nWhile debt such as mortgages and car loans is secured by collateral, credit cards are unsecured loans, which tend to fall at the bottom of the priority scale after a death. If your estate doesn't have enough money to pay all your debts, state law will determine which creditors are the highest priority. In many cases, unsecured debt will not get paid.\nIn addition, the following types of assets are protected from creditors in the event of a death:\n*   Retirement accounts, including employer-sponsored 401(k) or 403(b) plans, Solo 401(k) plans, SEP IRAs, Simple IRAs or Roth IRAs\n*   Life insurance proceeds\n*   Assets held in a living trust\n*   Brokerage accounts\n*   Homes, depending on state law and how title to the property is held\nCredit card companies may contact survivors after a death to get information such as how to contact the executor of the deceased's estate. However, they cannot legally ask you to pay credit card debts that aren't your responsibility. If you're not sure what your responsibilities are, consult an attorney familiar with estate law in your state.  \nCredit Card Liability After Death\n---------------------------------\nKeeping your credit card balances manageable while you're alive can ensure your credit card debt doesn't burden your survivors after you die. If a spouse or other family member with whom you had joint credit accounts dies, keep an eye on your credit score to make sure it isn't negatively affected as a result. Check your credit report and consider signing up for free credit monitoring to help you build and maintain a good credit score. END
 TITLE: What Happens to Credit Card Debt When You Die? CONTENT: Assets That Are Protected From Creditors\n----------------------------------------\nIf you discover that a spouse or other relative's credit card debt was bigger than their estate, will you have to empty your bank account or hand over your spouse's life insurance to pay the credit card companies?\nWhile debt such as mortgages and car loans is secured by collateral, credit cards are unsecured loans, which tend to fall at the bottom of the priority scale after a death. If your estate doesn't have enough money to pay all your debts, state law will determine which creditors are the highest priority. In many cases, unsecured debt will not get paid.\nIn addition, the following types of assets are protected from creditors in the event of a death:\n*   Retirement accounts, including employer-sponsored 401(k) or 403(b) plans, Solo 401(k) plans, SEP IRAs, Simple IRAs or Roth IRAs\n*   Life insurance proceeds\n*   Assets held in a living trust\n*   Brokerage accounts\n*   Homes, depending on state law and how title to the property is held\nCredit card companies may contact survivors after a death to get information such as how to contact the executor of the deceased's estate. However, they cannot legally ask you to pay credit card debts that aren't your responsibility. If you're not sure what your responsibilities are, consult an attorney familiar with estate law in your state. END
 TITLE: What Happens to Credit Card Debt When You Die? CONTENT: Credit Card Liability After Death\n---------------------------------\nKeeping your credit card balances manageable while you're alive can ensure your credit card debt doesn't burden your survivors after you die. If a spouse or other family member with whom you had joint credit accounts dies, keep an eye on your credit score to make sure it isn't negatively affected as a result. Check your credit report and consider signing up for free credit monitoring to help you build and maintain a good credit score. END
 TITLE: How to Finance Your Next Home Improvement Project CONTENT: What Do I Need for a Home Improvement Loan?\n-------------------------------------------\nIt's ideal to have at least good credit when applying for a home improvement loan, so the first thing you'll need to do is to check your credit score. To give you an idea of where you want your score to be, here's how FICO breaks down its credit score ranges:\n*   **Exceptional**: 800 to 850\n*   **Very good**: 740 to 799\n*   **Good**: 670 to 739\n*   **Fair**: 580 to 669\n*   **Poor**: 300 to 579\nYou'll also need to make sure you have documents that verify your income, such as pay stubs or a W-2, or bank statements and recent tax returns if you're self-employed.\nIf you're planning to get a loan based on your home's equity, you'll also typically need to get an appraisal done on the home to determine its value and the amount of equity you have based on what the home is worth and what you have left on your mortgage loan. END
 TITLE: How to Finance Your Next Home Improvement Project CONTENT: Home Equity Loans and HELOCs\n----------------------------\nOne of the most common ways to finance home improvements is through a second mortgage in the form of a home equity loan or a home equity line of credit.\nBoth are designed for homeowners who have at least 20% equity in their homes, and the debt is secured by the home itself. As a result, home equity loans and lines of credit typically offer lower interest rates than other loan types, especially unsecured loans.\nIf you use loan funds from a home equity loan or line of credit to buy, build or substantially improve the home used to secure the debt, you may be able to deduct some or all of the interest paid on your tax return.\nHome equity loans and lines of credit are best if you're confident in your ability to repay the debt on time. Here's what you need to know about each one.\n### Home Equity Line of Credit\nA home equity line of credit, also called a HELOC, typically comes with a variable interest rate that can fluctuate along with market rates. These typically start out lower than the fixed rate you might get with a home equity loan, but over time the variable rate can increase and potentially cost you more in the long run.\nAs a result, HELOCs are best for people who plan to pay off their debt relatively quickly. By doing this, you can take advantage of the lower initial variable rate and eliminate the debt before that rate goes up too much.\nHELOCs are also good for homeowners who have ongoing renovation projects. Instead of giving you the full amount of the loan upfront, the lender allows you to revolve a balance, taking out debt and paying it off over and over again.\n### Home Equity Loan\nA home equity loan provides borrowers with the full loan amount upfront and a fixed interest rate. Depending on the loan terms, you may have between five and 30 years to repay the debt.\nBecause home equity loan interest rates stay fixed for the life of the loan, they're best for homeowners who plan to pay off what they owe over a long period. They're also excellent for borrowers who have just one home improvement project and don't need to revolve a balance. END
 TITLE: How to Finance Your Next Home Improvement Project CONTENT: Other Loan Options for Improving Your Home\n------------------------------------------\nWhile home equity loans and HELOCs can provide an inexpensive form of financing, they're not always the best solution.\nBecause they're secured by your home, the lender can foreclose on your home if you default on your payments, forcing you to sell it so the lender can recoup the amount you owed.\nIf you'd rather not risk the roof over your head, alternatives include cash-out refinancing and personal loans.\n### Cash-Out Refinancing\nInstead of taking on a second loan, a cash-out refinance will refinance your existing mortgage and essentially cut you a check for the amount you want to cash out.\nYour new loan will include the initial mortgage balance plus the cash-out amount and any closing costs you might have rolled into the loan.\nA cash-out refinance gives you the opportunity to finance your home improvement project over a long period of time. And if mortgage rates have dropped since you first bought the house, you may also be able to get a lower rate on your debt overall.\nThe main downside to a cash-out refinance is that you'll pay closing costs on the full loan amount instead of just the cash-out amount. With a home equity loan or HELOC, closing costs only apply to the funds needed for your renovation.\n### Personal Loan\nDepending on the lender, you can do just about anything you want with a personal loan, including financing a home improvement project.\nPersonal loans are typically unsecured debt, so you don't have to use your house as collateral and put your homeownership at risk. Also, you don't need to have a specific amount of equity in your home to qualify for a personal loan, and you may be able to qualify for a decent interest rate even if you have fair credit.\nThere are, however, some drawbacks that go with using a personal loan over a loan backed by your property. For starters, personal loans typically have much shorter repayment periods than home equity products and cash-out refinance loans.\nWhile lenders' terms vary, you can generally expect to have anywhere between one and seven years to repay the loan, based on the original loan amount. Also, personal loan interest isn't tax deductible, even if you're using the funds to improve your home.\nFinally, unsecured personal loans typically charge higher interest rates than secured loans. So if you're planning a big project and needs thousands or even tens of thousands of dollars, you may want to go with a less expensive option. END
 TITLE: How to Finance Your Next Home Improvement Project CONTENT: How to Get the Right Loan for Your Home Improvement Project\n-----------------------------------------------------------\nThere's no single best way to finance home renovations, so it's important to know what you want and your plans to pay off the debt.\nIf you know you'll be able to pay off the new loan in a relatively short period of time, it may be better to opt for a home equity loan or HELOC, which will provide cheaper rates than personal loans.\nIf, however, you also want to refinance your mortgage to take advantage of lower mortgage rates, it may make sense to do a cash-out refinance and stick with one loan instead of two.\nThat said, any of these loans can have serious consequences if you're unable to repay them on time. And if you have fair credit, you may have a hard time qualifying for a low rate, if at all.\nIf you want to avoid the negative consequences of a loan secured by your home or have fair credit, a personal loan may be your best bet.\nRegardless of which loan you choose, it's essential to take the time to shop around to get the best deal. If you're looking to do a home equity loan, HELOC or cash-out refinance, start by checking with your existing lender to see what terms they can offer.\nDepending on your overall relationship with the lender, you may qualify for special terms or discounts. Even if you do, compare the offer with other mortgage and home equity lenders to see what terms and features they bring to the table. Specifically, look at interest rates, fees, closing costs and repayment terms.\nIf you're looking for a personal loan, compare terms from traditional banks, credit unions and online lenders to determine which offer is best. Many lenders will allow you to get prequalified and review your offer without officially applying for the loan.\nUsing Experian CreditMatch, you can do this with multiple lenders at once. This process usually requires just a \"soft\" credit check, which doesn't affect your credit score.\nIn addition to checking interest rates, also look at whether the lender charges an origination fee or a prepayment penalty. Also, consider how long each lender will give you to repay the debt and whether you can afford the monthly payments. END
 TITLE: How to Finance Your Next Home Improvement Project CONTENT: If you're already thinking about how to get money to fund your home renovation, you've likely already considered whether it's the right course of action in the first place.\nIf not, take the time to think about whether you should borrow money for this particular endeavor and if there are other alternatives you might want to try first.\nFor example, if you only need a few thousand dollars or less and have good cash flow, it may be better to wait and save for the project and avoid adding new debt altogether. And if you have fair credit and may not get access to a favorable rate, you could consider asking a family member or friend for a low-cost loan while you work on improving your credit.\nWhatever you decide, take the time to consider all of your options and pick the best one for your specific financial situation. END
 TITLE: Checklist: What to Do When a Loved One Dies CONTENT: Take Care of Immediate Needs\n----------------------------\n*   To begin taking care of the issues surrounding a loved one's death, you'll need a legal pronouncement of death. A medical professional at the hospital, nursing home or health care facility will handle this.\n    *   If your loved one died at home under hospice care, call the hospice coordinator.\n    *   If they died at home without hospice care, call 911 and paramedics will determine the next steps for getting the legal pronouncement of death.\n*   Make sure that any dependents, such as children or pets, are taken care of. While specific future arrangements may be noted in a will or trust, in the aftermath of a death, immediate safety and caretaking are the top priorities.\n*   You'll need to gather important documents and records including:\n    *   Estate-related documents (will, trust, power of attorney, prepayment contract for funeral or cremation)\n    *   Identification (Social Security card or number, driver's license, passport)\n    *   Family records (birth certificate, marriage license, divorce papers, prenuptial agreements, military service\/discharge papers)\n    *   Deeds or titles (real estate deeds, mortgage documents, promissory notes, vehicle titles\/registrations)\n    *   Insurance policies (life, health, auto, disability, property and funeral insurance)\n    *   Financial account information **(**bank accounts, retirement accounts, investment\/brokerage accounts, annuities, credit and debit card accounts)\n    *   Financial records (pension plans, veterans benefits, Social Security benefits, tax returns, income and property tax statements, loan documents)\n    *   Contact information (family and friends; professionals they worked with such as doctors, attorneys, accountants; location of and keys to safety deposit boxes)\n    *   Usernames, passwords and PINs (for online accounts, cellphones, computers and devices)\n*   If your loved one made burial arrangements in advance, contact the funeral home or mortuary. If they didn't have a plan, ask a trusted friend or family member to contact funeral homes and then visit them with you.\n*   Make sure your loved one's home is secure and that any valuables are in a safe place. Unfortunately, burglars sometimes target homes when they know the owner has died.\n*   Contact the post office to have your family member's mail forwarded to your home or the home of the estate executor.\n*   Notify family members, close friends, clergy and your loved one's employer; ask those who are notified to pass the news on to others.\n*   Ask a friend or family member to write and place an obituary for your loved one if you don't feel up to the task. END
 TITLE: Checklist: What to Do When a Loved One Dies CONTENT: Secure Their Estate\n-------------------\n*   You'll need certified copies of your loved one's death certificate for each financial account, benefit plan, insurance policy and piece of real estate they owned, as well as for courts and government agencies.\n    *   You can get certified copies from the funeral home, mortuary or your state or county office of vital statistics.\n    *   10 to 20 certified copies is a good number to start with; you can also order more later if you need them.\n*   If your family member had life insurance, contact these companies to start the process of claiming life insurance payouts.\n*   Within 30 days, you'll need to begin the process of settling the estate, which varies depending on what type of estate plans your family member left behind.\n    *   If your loved one had a living trust, the estate does not have to go through probate (a legal process for distributing property after someone passes away).\n    *   If your loved one did not have a will, or had a will but not a trust, visit your state courts' website to determine if the estate must go through probate. Laws vary from state to state.\n    *   If probate is required, file the appropriate documents with the court within the required time frame.\n    *   If your loved one had a will, the probate court will validate it and authorize the executor to pay any debts and distribute assets.\n    *   If your loved one did not have a will, the probate court will decide how to distribute the estate and appoint an administrator to carry out those decisions. END
 TITLE: Checklist: What to Do When a Loved One Dies CONTENT: Contact the Necessary Sources\n-----------------------------\nWhen you contact the following parties to inform them of your loved one's passing, they may require you to provide a certified copy of their death certificate.\n*   Contact the Social Security Administration (SSA) to report your family member's death (you can also ask the funeral home to do this) and get information about survivor benefits.\n*   If your loved one was a military veteran, contact the U.S. Department of Veterans Affairs to report their death, apply for burial or mortuary benefits, and learn about survivor benefits.\n*   If your family member was receiving a pension, contact the pension provider to report their death and learn about survivor benefits or final pension payments.\n*   If your loved one was employed, contact their employer to find out about final wages or other payments, any job-provided life insurance, and what happens to survivors' health insurance coverage.\n*   Contact any credit card companies that your family member had accounts with to report their death. Either cancel the credit cards or transfer joint accounts into the surviving account holder's name.\n*   If your loved one had an outstanding mortgage, contact the loan servicer to report their death and find out what you need to do to assume or pay off the mortgage.\n*   Contact banks or financial institutions where your loved one had accounts to report their death and close their accounts or change the name in which accounts are held.\n*   Contact the three major credit bureaus (Experian, TransUnion and Equifax) to get copies of your family member's credit report. This will give you a list of any credit accounts that have outstanding balances and may need to be paid.\n*   Contact your state's motor vehicles department to report your family member's death and cancel their driver's license.\n*   Cancel services and subscriptions your family member had (such as cable, magazines\/newspapers, cellphone, internet and memberships).\n*   Contact any service providers (such as a gardener or cleaning service) to let them know what happened and cancel service or transfer it into your name.\n*   Cancel your loved one's social media accounts or turn their account into a memorial.\n*   Contact email providers to close your family member's email accounts. END
 TITLE: Checklist: What to Do When a Loved One Dies CONTENT: Understand What Happens to Their Credit and Debt\n------------------------------------------------\n*   When you report your loved one's death to their creditors, the creditors will notify the credit bureaus the next time they send an account update. The SSA will also notify credit bureaus of your family member's death.\n    *   You can also notify Experian, TransUnion or Equifax yourself when you request your family member's credit report. Their credit report will not be deleted until the final debt falls off of the report.\n*   What happens to outstanding debts your loved one had? You may be responsible for their debts if:\n    *   You had joint credit accounts or loans with them, or cosigned on a credit account or loan with them\n    *   Your spouse or partner passed away and you live in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin) or live in Alaska and held your property in community.\n*   If you are not in a community property state, you generally are not responsible for a spouse or partner's debt after they die. Instead, any debt will be paid out of their estate.\n    *   Laws vary from state to state, so contact your state attorney general's office or consult a lawyer familiar with estate law to determine what debts you need to pay.\n    *   Do not make any decisions or payments until you determine whether you are responsible for the debt; in some situations, making a payment on a debt can make you legally responsible for the entire debt.\n*   Don't use your loved one's credit cards unless you are a joint account holder. END
 TITLE: Checklist: What to Do When a Loved One Dies CONTENT: Get the Emotional Support You Need\n----------------------------------\n*   Divide up the tasks on this list with family members, friends and others; don't try to handle it all yourself.\n*   Consider getting counseling from a therapist or joining a local bereavement support group.\n*   Seek comfort from your religious community or clergyperson; they can also recommend support groups that may help you.\n*   Don't isolate yourself; reach out to friends and family for support.\n*   Don't rush into any major life decisions, such as selling the family home. Wait until some time has passed and you are better able to deal with your loss.\n*   Practice self-care. Eat well, get as much rest as you can, and set aside time for activities that nurture you.\nSee if your loved one's hospice coordinator, doctors or the funeral home can recommend bereavement resources and support groups. Other resources for helping you with your loss include:\n*   GriefShare\n*   Grieving.com\n*   National Alliance for Grieving Children\n*   National Hospice and Palliative Care Organization\n*   National Widowers' Organization\n*   Pathways Center for Grief & Loss\n*   Widowed Parent\n*   WidowNet END
 TITLE: Can I Use My Spouse’s Credit Card After They Die? CONTENT: Am I Responsible for my Deceased Partner's Credit Card Debt?\n------------------------------------------------------------\nWhether you are liable for your deceased partner's credit card debt depends on the type of credit card account and the state where you live. If you and your spouse are joint account holders on a credit card, you are both equally responsible for the debt on the card, no matter who made the charges. Joint credit card accounts are fairly rare these days, so if you and your spouse share a credit card, it's probably because one of you is the account holder and the other is an authorized user. Check the terms of your credit card agreement or contact the card issuer to find out.\nIf you are an authorized user on your spouse's credit card, or if the credit card is in your spouse's name alone, you generally are not required to pay those debts unless you live in a community property state. In these nine states, any debt incurred by one spouse is considered the responsibility of both spouses. That means you will be responsible for your deceased spouse's credit card debt, even if you're not a joint account holder or authorized user on the card.\nThe community property states are: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin; in Alaska, spouses can choose to make their property community. Specific laws regarding community property may vary from state to state, so you should check with your state's attorney general's office or contact an attorney specializing in estate law to clarify your responsibilities for your spouse's credit card debt.\nAfter your partner or spouse dies, you may also be liable for any debt you cosigned or that was held jointly. Mortgages, auto loans and home equity loans are common examples of debt commonly shared with a partner that may now be solely on your shoulders. Depending on the laws in your state, you may also be responsible for your deceased spouse's medical debt.\nWhat if your spouse or partner died with credit card debt for which you are not responsible? In most cases, the credit card balance will be paid using the assets in your spouse's estate.\nIf you're unsure of what debts you are and are not responsible for, the best approach is to consult an attorney before making any decisions or payments. If an attorney is not an affordable option, reach out to your spouse's lenders to get more information. END
 TITLE: Can I Use My Spouse’s Credit Card After They Die? CONTENT: Next Steps After a Cardholder Dies\n----------------------------------\nWhen your spouse passes away with existing credit card debt, there are some important steps you should take to protect your credit score.\n*   **Stop using their credit cards, even if you are an authorized user.** Because using a credit card on which you are not the account holder constitutes fraud, stop using your spouse's cards immediately to avoid any issues. While your creditor may be understanding of the situation, it'd be best to avoid the problem altogether. If you or your spouse previously set up any automatic payments to be made with these credit cards, you'll need to change the method of payment to a credit card or bank account for which you are the account holder if you weren't paying from a joint account.\n*   **Notify the credit card companies of the death.** If the card was in your spouse's name alone, ask the card issuer to close the account. If it was a joint credit card account, explain to the credit card issuer that one of the account holders is deceased. The credit card company will typically give you the option to keep the account open in your name, but may ask you to fill out a new credit application and agree to new credit terms.  \n    Even if you don't plan to use the joint credit card, think twice before closing the account, especially if it's a card you've had for a long time. Closing a credit card account can hurt your credit score if it increases your credit utilization ratio.\n*   **Notify the credit bureaus of the death.** Eventually, the credit card companies will report your spouse's death to credit reporting agencies, but it might take a while. In the meantime, criminals could try to steal your spouse's identity by applying for new credit in their name. You can help prevent this by notifying the three major consumer credit bureaus (Experian, TransUnion and Equifax) yourself. Each credit bureau has a slightly different reporting process, but you can generally notify the bureaus by mail or online. You'll need your spouse's Social Security number and a copy of their death certificate.\n*   **Review your spouse's credit report.** In addition to alerting credit bureaus of your spouse's death, it's a good idea to request a copy of your spouse's credit report. The report will provide a list of your partner's creditors so you can make sure each of them is notified of the death and watch for any incoming bills.\n*   **Pay any bills for which you are responsible.** If you and your spouse have jointly held credit cards or other joint credit accounts, such as your mortgage, do everything you can to pay these bills on time. Even one late payment can cause your credit score to dip, and maintaining good credit now may be more important than ever.  \n    If you are in a community property state, you are responsible for all of your spouse's credit cards. Even though you will be closing the accounts, make sure to pay the final bill on time, or your credit score may suffer. If making minimum payments will be difficult if not impossible, reach out to the credit card issuers to see if they can offer some accommodation while you figure out the way forward financially.  \n    Unless you live in a community property state, don't make any payments on credit cards on which you're an authorized user or cards belonging to your spouse alone. Because married couples have separate credit reports and credit scores, ignoring a bill for which you're not responsible won't hurt your credit score. END
 TITLE: Can I Use My Spouse’s Credit Card After They Die? CONTENT: Where to Look for Financial Help After a Spouse's Death\n-------------------------------------------------------\nThe death of your spouse could leave you in financial straits, especially if your deceased partner was the primary breadwinner, managed all your finances, or had debt you didn't know about until they passed away. If you're having trouble paying your bills or are struggling with more debt than you can handle, credit counseling can help.\nCertified credit counselors help individuals learn how to pay down debt and gain control of their finances. They typically work for nonprofit organizations and services and offer their services free or for a small fee. Your credit counselor will meet with you to discuss your financial concerns and help you develop a plan for getting your debt under control.\nTo ensure you're working with a reputable credit counseling agency, start your search with the National Foundation for Credit Counseling, Financial Counseling Association of America or the U.S. Department of Justice website, where you can find lists of approved credit counselors by state.\nCredit card companies and debt collectors cannot require you to pay your deceased spouse's credit card debts if you're not legally responsible. Although they may contact you to ask questions, they shouldn't harass or threaten you. If you're being bothered by credit card companies or debt collectors, you should file a complaint with the Consumer Financial Protection Bureau and report the calls to the attorney general in your state.\nIf you're not sure whether you're liable for the debts and collection agencies continue to call, you may want to consult a lawyer with experience in estate law. If that's beyond your budget, look for local legal aid offices that can provide low- or no-cost services. You may also qualify for financial assistance that could help with housing, food, household goods and more. END
 TITLE: Can I Use My Spouse’s Credit Card After They Die? CONTENT: Protect Your Credit\n-------------------\nIf your spouse or partner left behind debts for which you are responsible, paying those debts will help ensure your credit score doesn't suffer and alleviate some financial issues and stress you'd rather not deal with during this time. Learning to live without your spouse or partner will take time; becoming financially self-sufficient is part of that process. END
 TITLE: How to Help Older Adults Deal With Dementia and Their Finances CONTENT: Financial Problems Are an Early Indicator\n-----------------------------------------\nResearchers at the Johns Hopkins Bloomberg School of Public Health and the Federal Reserve Board of Governors reviewed de-identified Medicare claims and credit report data for more than 81,000 people living in single-person households. About 1 in 3 people studied were diagnosed with dementia over a 15-year period. Researchers reviewed their financial outcomes beginning up to seven years prior to diagnosis and for four years following diagnosis. They also compared these outcomes with the finances of people who weren't diagnosed with dementia, and those who had other health difficulties.\nHere's what they found:\n*   **Missed bills are an early warning sign.** Study participants diagnosed with dementia were more likely to miss bill payments starting as early as six years before a clinical diagnosis.\n*   **Problems with paying bills can lead to credit issues.** Missed payments and other adverse financial outcomes led to an increased risk of developing subprime credit scores (credit scores rated fair or lower) starting 2.5 years before a dementia diagnosis.\n*   **Being late on bills is a persistent problem.** Rates of late payments and subprime credit risk persisted for up to 3.5 years after beneficiaries received dementia diagnoses.\n\"Our study is the first to provide large-scale quantitative evidence of the medical adage that the first place to look for dementia is the checkbook,\" says study co-author Lauren Hersch Nicholas, Ph.D., an associate professor in the Department of Health Policy and Management at the Bloomberg School. \"Earlier screening and detection, combined with information about the risk of irreversible financial events, like foreclosure and repossession, are important to protect the financial wellbeing of the patient and their families.\" END
 TITLE: How to Help Older Adults Deal With Dementia and Their Finances CONTENT: Start a Conversation and Establish a Plan\n-----------------------------------------\nSo, what should older adults and their family members do with this information? The first step is to start a conversation—and the earlier, the better. It is far easier to open a dialogue and establish a plan before any major money problems arise, when all parties are able to collaborate. You can always keep a plan on the back burner unless and until it's needed.\n**Be watchful and respectful.** Managing your own money is a keystone of independent living. Giving up that control can be sad and scary, especially for someone who is experiencing dementia. Having someone keep a watchful eye on finances can be vital, but so is helping the person living with dementia maintain as much autonomy and dignity as possible.\n**Consider a financial power of attorney (POA).** A POA for finances enables a trusted caregiver to manage another person's finances on their behalf. The POA can take effect immediately or in the event of mental or physical incapacity.\n**Add a trusted caregiver to accounts.** Having a trusted caregiver act as co-owner on checking and savings accounts gives them the ability to pay expenses in an emergency. They can also use online or mobile banking to monitor account activity, pay bills, set up account alerts and more.\n**Limit or close credit lines.** Closing credit card accounts can be a useful safeguard against overspending. If you want to keep credit accounts open, you may be able to have card issuers turn cards \"off\" or set spending limits electronically.\n**Use modern money tools.** Convenience features can be a substantial help to older adults and their financial caregivers. A few to consider:\n*   **Reloadable prepaid cards**: These function like credit or debit cards but have preset limits and don't link to credit lines or checking accounts.\n*   **Automatic payments**: This is a way to ensure critical bills like mortgage payments, insurance, utilities and credit cards are paid on time.\n*   **Account alerts**: Caregivers can be notified when account balances drop below a preset level, or even can be sent texts whenever a transaction is made.\n*   **Spam-blocking phone apps**: Scam calls often target seniors, and limiting them can prevent criminals from doing harm. END
 TITLE: How to Help Older Adults Deal With Dementia and Their Finances CONTENT: Protecting Older Adults From Identity Theft\n-------------------------------------------\nAlthough identity theft and scams present a particular challenge for adults with dementia, they can be a problem for all older adults (and, for that matter, everyone else). It may be wise to look into placing fraud alerts or credit freezes with all three credit reporting bureaus (Experian, TransUnion and Equifax). These actions can help protect a person from identity thieves looking to open credit accounts and loans in their name.\nUsing identity theft protection such as Experian IdentityWorks℠ may provide additional benefits as well by:\n*   **Monitoring credit reports and scores** for all three credit bureaus. For caregivers, this also means being alerted to missed bill payments and declining credit scores that can signal cognitive changes.\n*   **Checking for new accounts**, changes of address and account takeover—all signs of identity theft.\n*   **Reporting on court records**, which can be indicators of a stolen identity.\n*   **Providing support** to uncover identity fraud and deal with the consequences of stolen identity. END
 TITLE: How to Help Older Adults Deal With Dementia and Their Finances CONTENT: Tools, Strategies and Help for Coping\n-------------------------------------\nManaging money and risk while simultaneously coping with dementia is a massive challenge, both for caregivers and those affected. If you're lucky enough to have a caregiver you can truly trust—or have the honor of being one—there are tools and strategies that can help make the process more workable.\nIf you need additional guidance, consider consulting an elder care attorney or look for local resources for caregivers in your area. Want to learn more? The National Institute on Aging offers information on legal and financial planning for people with dementia. END
 TITLE: How to Pay for College When Federal Student Loans Aren’t Enough CONTENT: Appeal for More Financial Aid\n-----------------------------\nIf you find you need more financial aid than you received in direct federal student loans, appeal directly to your school's financial aid office. You can do this at any time, including after receiving your financial aid package and after the school year starts. Most schools will require you to provide an explanation of special circumstances, such as a change in income from a job loss or pay cut, that led to you needing more funds. But whether or not there has been a change, this is your best place to start. At worst, your financial aid administrator will say no—at best, you may get the extra funding you need. END
 TITLE: How to Pay for College When Federal Student Loans Aren’t Enough CONTENT: Apply for Scholarships\n----------------------\nYou may be able to increase the funding you have for school by applying for scholarships. Scholarship dollars available to you may be small, but can really add up if you're able to win several. Visit or call your university's financial aid office and inquire about scholarships that are available to incoming and current students, and research opportunities online at sites such as Scholarships.com and Fastweb. Apply for any scholarships that you qualify for, even if they're only for a few hundred dollars. Unlike loans, scholarships and grants don't need to be repaid, nor are they considered taxable income. END
 TITLE: How to Pay for College When Federal Student Loans Aren’t Enough CONTENT: Look Into Tuition Payment Plans\n-------------------------------\nA tuition payment plan may not reduce your expenses, but it could at least make them easier to manage. Inquire with your university bursar's office about payment plans that will spread out your payment over several months instead of charging you all at once. Some universities extend payment plans to students who, like you, are dealing with a funding gap and need more time to come up with funds. You may be able to pay monthly without being charged late fees or getting dropped from your classes. This allows you to remain enrolled to avoid a gap in your studies and work the payments into your budget. END
 TITLE: How to Pay for College When Federal Student Loans Aren’t Enough CONTENT: Find a Part-Time Job\n--------------------\nWhen you've reached your limit on federal loans, a part-time job can help you cover your remaining expenses without taking on more debt. Look for jobs that are on or near campus to reduce your fuel costs and time commuting (you'll still have homework to do, after all).\nThe coronavirus pandemic has changed the landscape of the job market, so some of the jobs that were in high demand months ago may not be an option. Instead consider industries that are newly ripe with opportunities for teenagers and young adults. Many grocers, for example, are hiring motivated young people to do grocery deliveries and restock shelves. Tutoring and freelancing are other viable options that can help you earn money quickly. END
 TITLE: How to Pay for College When Federal Student Loans Aren’t Enough CONTENT: Reduce Your Expenses\n--------------------\nHas it been a while since you looked at your budget, or maybe you don't have one at all? No worries. It's a perfect time to start as you get creative and find ways to fund your education. Grab a notebook and list your monthly expenses and income. Classify your expenses as needs (rent, food, utilities) or wants (entertainment, travel) and prioritize them based on importance. Eliminate or drastically reduce your list of wants until you free up cash to reduce your tuition bill. Creating a lean budget may be painful, but your sacrifices will be well worth it.\nYou may also want to rethink your living situation. While the thought of ditching your pad for a cheaper one that's smaller or farther away from school to cut costs may sadden you, moving could help you free up a big pile of cash. What you save on housing may be enough to cover a chunk of the outstanding balance still owed to the college or university you will be attending. If uprooting sounds unappealing or unrealistic, consider bringing in a roommate, which can similarly cut your rent payment. END
 TITLE: How to Pay for College When Federal Student Loans Aren’t Enough CONTENT: Explore Other Borrowing Options\n-------------------------------\nFederal student loans are the best way to borrow for college, but they're not the only way to do so. If the gap between your federal loans and the amount you owe is significant, you may need to look into additional loans.\nParent PLUS loans are one option. These are available for the parents of dependent students who are enrolled in college at least part time. The funds can be used to cover tuition, fees and other college-related costs.\nA credit check is required during the application process, and parent borrowers can be denied if they have a poor history repaying debts. Parents who have been denied can still qualify if an endorser with good credit assumes repayment responsibility or the parent borrower is able to prove extenuating circumstances affected their credit history. If a parent's loan application is denied, the student's borrowing limit on unsubsidized federal student loans may be increased to the amount set for independent students.\nIf you've reached your annual limit for federal loans, you might consider applying for a private student loan to cover the remaining expenses. Private lenders decide what loan limits to set for borrowers, so your federal loan limit won't be a factor.\nOnly consider private student loans after you've exhausted all other options. They sometimes come with steeper interest rates and require a credit check. Plus, you won't get the perks, like income-based repayment plans, deferments, forbearance and loan forgiveness, that you'll get with federal loans.\nYou can use Experian CreditMatch™ to view loan offers from private lenders. END
 TITLE: Can My Spouse Ruin My Credit? CONTENT: Can Marriage Affect Your Credit Score?\n--------------------------------------\nCredit reports do not indicate your marital status, nor will they include your spouse's identity or any account they hold independently.\nIf you open joint credit cards or loans as a couple, however, those accounts will appear on the credit reports maintained for both of you at the three major credit bureaus—Experian, TransUnion and Equifax. This means the information associated with the account can affect credit scores for both account holders. If the account is managed responsibly, it can help both of you lift your scores. If the shared accounts go delinquent or are otherwise mismanaged, though, your and your spouse's creditworthiness will be negatively affected.\nThe most common credit score models, created by FICO® and VantageScore®, heavily weigh payment history (your history of making on-time payments) and credit utilization (how debt balances compare to credit limits) when calculating scores. Therefore, it's important to be aware of the status of all jointly held accounts. If you or your spouse has a tendency to max out credit cards and miss payments, the time to address those issues is before you open any accounts together.\nYour ability to borrow money and make living arrangements can be hampered if your spouse enters the marriage with a credit report full of negative information. For example, if you want to finance a home, car, furniture or electronics together, the lender will check each of your credit reports. Renting a home can also be difficult if both of you will be on the lease.\nThere are other considerations when marrying someone with bad credit:\n*   If you open a joint credit obligation, both parties will be equally responsible for payment, which means you can be on the hook for an unpaid balance even if you didn't use the funds or get a divorce.\n*   The cost of credit products might come with prohibitively expensive interest and fees.\n*   If your spouse's credit report shows such red flags as recent and prolific collection activity, a bankruptcy, or a foreclosure, the two of you may be ineligible for any kind of joint credit product or home lease.\n*   In many states, a spouse's poor credit can drive up insurance rates and affect your household finances.\nAs for your spouse's debt incurred before marriage, you won't be held liable, but you can be responsible for those that your partner racks up after tying the knot if you live in a state where community property laws apply (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin). If you do, both of you will be equally responsible for debts incurred during the course of the marriage. In other states \"common law\" rules apply, which means you only have to pay your own and jointly owned debts. Alaska is an exception, as it allows residents to opt in to community property rules.\nFor these reasons, it's wise to learn about your partner's credit issues early in the relationship and try to identify the root of the problem. A credit report peppered with late payments and excess credit card debt could indicate a lack of organization or habitual overspending. Or it might have been due to an unavoidable emergency that's unlikely to reoccur. Whatever the case, you should be fully aware of the past and present so you can plan for the future. END
 TITLE: Can My Spouse Ruin My Credit? CONTENT: Can You Buy a House if Your Spouse Has Bad Credit?\n--------------------------------------------------\nLike many couples, you may hope to purchase a home soon after your nuptials. If your credit is good and your income is sufficient to qualify for a mortgage, you can buy the property on your own and bypass the problems associated with a spouse who has bad credit.\nOn the other hand, if you need your spouse's income to qualify for the loan, or don't want to be the only one carrying the debt burden, his or her credit will be a factor. Unfortunately, your great credit won't neutralize the other applicant's subpar credit scores. That's because lenders don't average your two credit scores together to get a midpoint, but will focus on the lower credit score.\nMortgage lenders also check debt-to-income ratio (DTI), which is the total of your monthly debt obligations compared with your monthly earnings. If too much of your spouse's income is dedicated to paying off debt, the interest rate that's attached to the loan may be sky high—or the loan might be denied altogether.\nThankfully there are options to offset these dilemmas:\n*   **Shop around for a lender.** Credit unions tend to be flexible with members who have troubled credit histories. Online and community banks are also worth exploring.\n*   **Look into first-time homebuyer programs.** FHA loans andFannie Mae's HomeReady Mortgage may accept borrowers with low credit scores.\n*   **Offer a large down payment.** Putting extra money down will reduce the lender's risk, so that can compensate for less than desirable credit scores.\n*   **Start high, then go low.** If the only mortgage you can get has a high interest rate, you can accept it now and then refinance when your spouse's credit improves.\n*   **Ask someone else to cosign.** If a relative with great credit is willing to be on the title, this can be your way in. Depending on the circumstances, it's possible to have that person's name removed from the mortgage after you've established a lengthy and positive relationship with the lender. END
 TITLE: Can My Spouse Ruin My Credit? CONTENT: What to Do if Your Spouse Has a Poor Credit Score\n-------------------------------------------------\nThe good news is that credit scores aren't set in stone. They change along with the information that appears on your credit reports. If your spouse's numbers are low today, there are plenty of ways to increase them by taking action. As a couple, make a vow to:\n*   **Pay bills by the due date.** While late payments will remain on a credit report for seven years, you can lower their negative scoring impact by adding plenty of timely payments.\n*   **Reduce credit card balances.** Review the amount your spouse owes in credit card debt and compare it with the credit limits. If the balances are greater than 30% of the credit limit, this elevated credit utilization can start to hurt scores. Concentrate on repaying these debts; you might consider either the debt avalanche or debt snowball methods.\n*   **Open new accounts prudently.** Applying for credit products adds hard inquiries to your report, which can lower scores slightly. Hard inquiries on your credit scores aren't likely to make a difference on their own, but many new accounts and credit applications can cause your scores to drop and future applications to be denied.\n*   **Maintain older accounts.** Closing unused accounts can make credit balances a greater percentage of available limits. Consider keeping your accounts active as this can help you maintain a lengthy credit history and help keep down your credit utilization.\n*   **Check credit reports and scores regularly.** By knowing what is listed, you can spot and dispute fraudulent activity, which can harm credit reports and scores. Additionally, you can monitor your scoring progress, which can keep you both on the right track.\nAnother method to add credit scoring points is by enrolling in Experian Boost™† . This free program enables you and your spouse to add positive payment history from utility, cellphone and streaming bills to your credit reports. It's a simple and effective way to bump up FICO® scores, especially when they're on the low end of the spectrum. By working as a team, you and your spouse can drive up credit scores and create a future full of open opportunities for the both of you. END
 TITLE: Marriage Name Change Checklist CONTENT: Obtain a Copy of Your Marriage Certificate\n------------------------------------------\nYour marriage certificate—a government document verifying that you indeed got married—is the most important document you'll need for making a name change. Getting one begins with heading to the county clerk's office to get your marriage license prior to the big day. A license is essentially a marriage application that may need to be filed in the same county where you're holding your nuptials. Fees typically range from $15 to $35.\nEvery county is different, so be sure to clarify ahead of time what documents you'll need to get your license. In addition to your driver's license or government-issued ID, you might also be asked to present your birth certificate or bring a witness. Those who are getting remarried will also want to bring their divorce certificate (or your former spouse's death certificate if you're widowed).\nShortly following your marriage ceremony, both spouses and the person officiating the wedding will sign the marriage license. Witness signatures may also be required. The officiant generally submits the completed license to the county on the couple's behalf. You'll then receive your marriage certificate in the mail, making the union official in the eyes of the law. END
 TITLE: Marriage Name Change Checklist CONTENT: Order a New Social Security Card\n--------------------------------\nOnce you have your marriage certificate in hand, it's time to update your Social Security card. You can go in person to a Social Security Administration office to file the appropriate paperwork; just be sure to call ahead to make an appointment, as walk-in services may be limited. Alternatively, you can mail your documents to your local Social Security office. (The change can't be done online, unfortunately.)\nThe good news is that getting a new card is free. You'll just need to provide your completed application and updated ID, along with your marriage certificate. Just bear in mind that only original documents or copies certified by the issuing agency will be accepted. END
 TITLE: Marriage Name Change Checklist CONTENT: Get a New Driver's License\n--------------------------\nObtaining a new driver's license (or state-issued ID card if you aren't a driver) that reflects your new last name is next on your list. This must be done in person, as name changes are typically treated like a license renewal. In other words, you can expect to snap a new photo and pay a fee. Filling out the application beforehand can help streamline the process. Check your state's DMV website to get started.\nOnce you're at the DMV, have your current driver's license and marriage certificate on hand. It might also be helpful to bring your Social Security card, although this may not be necessary. Again, consult your state's DMV website ahead of time to see if any other supporting documentation is required. END
 TITLE: Marriage Name Change Checklist CONTENT: Update Your Bank Accounts and Credit Cards\n------------------------------------------\nWhen it comes to changing your name, you may find that getting a new Social Security Card and driver's license are the most time-intensive tasks. Fortunately, updating your name on your bank accounts is a relatively straightforward process. The particulars can vary depending on the financial institution, so begin by listing out all your accounts. This may include the following:\n*   Checking and savings accounts\n*   Retirement accounts\n*   Other investment accounts\n*   Credit cards\n*   Mortgage loans\n*   Auto loans\nReach out to each financial institution individually or search their websites to get clear on what you need to do to update your name. While some might require you to present your marriage certificate, others may only need your new driver's license or Social Security card. Either way, make sure you understand how you can provide the necessary documents. Some may allow for digital uploads; others might not. END
 TITLE: Marriage Name Change Checklist CONTENT: Take Care of Loose Odds and Ends\n--------------------------------\nNow that you've taken care of the big items, look to any other accounts or important documents that are listed under your previous name. These can include, but are not limited to, the following:\n*   **Insurance policies**: Health insurance, life insurance, and homeowners insurance all fall under this umbrella. Contact each insurer individually to find out what their process is for changing your name.\n*   **Passport**: If it's been less than a year since your passport was issued, you'll need to fill out an application and mail it and your most recent U.S. passport, a certified copy of your marriage certificate and a photo to the National Passport Processing Center. If it's been more than one year since your passport was issued, you'll submit a different form, which requires all the same documents and also requires a renewal fee to be paid.\n*   **Rental lease agreements**: Contact your landlord to notify them of your recent nuptials and clarify what they need in order to change your name on your lease. Amending your lease to reflect your new name shouldn't be a problem, assuming you provide your landlord with your marriage certificate. END
 TITLE: Marriage Name Change Checklist CONTENT: Will My Credit Score Change After Changing My Name?\n---------------------------------------------------\nChanging your name has no impact on your credit report or score. Any accounts you held in your name only prior to your wedding will remain separate (married couples do not have joint credit reports). However, if you choose to open joint accounts or cosign accounts with your spouse, those accounts will show up on both your credit report and your spouse's and will, in turn, affect both of your individual credit scores. The upside is that you can boost your scores if you both manage these accounts responsibly.\nWhile your credit file will remain separate from your spouse's, both will come into play when applying for a joint account. Whether it's a credit card, auto loan or mortgage, you may be charged higher interest rates—or be declined altogether—if you are applying jointly and one spouse has poor credit. It's also worth noting that what's considered joint debt after you're married varies from state to state. No one likes to think about divorce, but should it happen, the state you live in may treat all assets and debts accumulated during the marriage as an equal responsibility—regardless of whose name was on the accounts.\nOne bright spot is that there's no need to notify the major credit bureaus of your new name—it will automatically be reported by your lenders once you update any open accounts in your name. Your previous name will likely still be noted on your credit report as well. END
 TITLE: Marriage Name Change Checklist CONTENT: Review Your Credit Report After a Name Change\n---------------------------------------------\nEven though your new name should be automatically added to your credit report once you've updated your accounts with your lenders, it's still wise to check your report after a few months to make sure your new name appears. You can check your Experian credit report for free in a matter of minutes. You may find there are accounts listed on your credit report that you forgot to have updated. Check to see if there are creditors you forgot to notify or accounts that have failed to update your name. In these cases, it's best to contact those lenders individually to notify them of the change. END
 TITLE: How Does Marriage Affect Your Student Loans? CONTENT: Can a Partner's Student Loans Affect Your Credit?\n-------------------------------------------------\nAlthough you and your spouse share finances, you do not share a credit report. You each have individual files, so even if your partner has spotty credit, marrying them won't lower your score. But it could hurt your chances of qualifying for a loan together, since their score will influence lenders' approval decisions and the interest rate you're offered.\nAdditionally, if you cosign on a loan together, that account will impact your credit. If either of you wants to refinance existing student debt on a shared loan, or one of you cosigns on a loan for the other to go back to school, you will both be responsible for the debt. Any late payments or delinquencies will bring down your score.\nTherefore, you may want to take a hard look at your finances together before making such a decision. Will you be able to afford the loan payments as a married couple? If you lose your job, is your partner's income enough to cover the monthly loan installments? Assuming one of you is going back to school in pursuit of a higher-paying job, how likely is it that you'll be able to quickly land a position that warrants taking on new debt? It's important for both of you to understand what you're signing on for and how it might impact your credit opportunities in the future. END
 TITLE: How Does Marriage Affect Your Student Loans? CONTENT: Marriage May Affect Your Student Loan Repayment and Interest\n------------------------------------------------------------\nIf you're on an income-based repayment (IBR) plan for federal student loans, your monthly payments may increase when you get married. IBR plans are calculated based on your household size and income so, depending on your filing status, the government may factor your spouse's salary in when determining how much you can afford to pay.\nYou're required to recertify your IBR plan each year, and your monthly payments may change based on your previous year's income. Assuming that you and your spouse both earn income, your payment may rise after you're married. However, the amount can also drop if you become a single-income household, due to job loss or one of you leaving the workforce to raise children. You can also request assistance or a new repayment plan if your income is reduced long-term.\nSo, your newly increased payments won't necessarily be high throughout your marriage. But if you and your partner experience an increase in income due to promotions at work or taking on higher-paying jobs, you can expect your monthly student loan payments to rise accordingly.\nYour household income also affects your ability to deduct student loan interest on your federal taxes. If you are married and file jointly with your spouse and your combined income is $170,000 or higher, neither of you will be able to claim the student loan interest deduction. You can claim the full deduction if your household income is $140,000 or less. If you earn between $140,000 and $170,000, you may be eligible for a reduced tax benefit. END
 TITLE: How Does Marriage Affect Your Student Loans? CONTENT: Will You Be Responsible for Student Loan Debt After Divorce?\n------------------------------------------------------------\nAssuming the debt is only in your spouse's name, you will likely not be responsible for the debt after a divorce. But again, if you cosigned a student loan or a refinance loan to streamline your spouse's student debt, you are obligated to make the payments—even if your divorce decree says otherwise.\nIf your name is on the loan and your ex-spouse fails to pay, you'll still be legally responsible for coming up with the money. Should the loan could become delinquent and ultimately go into default, your credit score will be damaged, as well as your ex-spouse's.\nThe only way to be absolved of that responsibility is to be officially released from the debt, whether that means talking to your creditor about having your name taken off the account or your spouse refinancing a new loan in their name. A divorce decree does not release you from debts you held jointly with your former spouse, regardless of what you've agreed to in your settlement. If the decree specifies that your ex is responsible for a debt, you will be affected if they fall behind on payments. END
 TITLE: How Does Marriage Affect Your Student Loans? CONTENT: Additional Ways Marriage Can Affect Your Credit\n-----------------------------------------------\nYour spouse's student loans will not affect your credit as long as the debt is in their name only. And your credit file doesn't change simply because you got married, since you and your spouse continue to have individual credit files. None of the accounts either of you opened prior to getting married will affect one another's scores for better or worse.\nHowever, marriage can affect your credit in other ways:\n*   **Cosigning loans**: As noted above, you're responsible for any loans you cosign with your spouse. If you're sharing loan payments, you'll want to be certain that you can each afford the monthly installments to avoid falling short or being late, either of which can negatively impact your credit.\n*   **Sharing a credit card**: Because joint credit cards are rarely offered today, many couples share a card by having one spouse apply and then adding the other as an authorized user on the account. The account will show up on both of your credit reports, but only the primary account holder is ultimately responsible for making payments. Using a card together can be a great way to practice money management and to accrue rewards such as travel points for a future vacation. But it can also hurt your credit score if your spouse charges large purchases that you can't afford to pay off as a couple, or if the primary account holder misses a payment. Learn more about how to manage credit cards as a couple.\n*   **Budget management**: Maintaining a balanced budget as a couple is key if you want to avoid taking on more debt than you can handle. If your partner is good with money and accustomed to a budget, you can reinforce each other's financial discipline and plan for your expenses together. If your partner tends to overspend, however, you may find yourselves relying on credit cards or loans to cover your costs. Without a plan for paying those off, you might run up high balances or start missing payments, which are two major factors in your credit score.\nWhether you're concerned about your individual student debts or your ability to qualify for a mortgage or other financing in the future, it's a good idea to talk about money with your partner before you get married. Understanding how much debt you each carry, and your expectations about whether you'll pay it together or individually, can help you create a solid strategy for managing bills and working toward shared goals.\nIf you both create an Experian Boost™† account, you can add utility bills and streaming subscriptions to your credit files, allowing your on-time payments to be counted toward your credit scores powered by Experian. You'll both also have access to free credit monitoring and alert features so you can track your progress and share your results with each other.\nThe important thing is that you communicate with one another and that you are on the same page about all aspects of your financial lives, ‘til debt do you part. END
 TITLE: Do You Need Pet Insurance? CONTENT: What Does Pet Insurance Cover?\n------------------------------\nPet insurance helps you afford your pet's medical expenses, though the extent of your coverage depends on the plan you choose. In most cases, you pay for your pet's treatment upfront and the insurance company will reimburse you for qualifying costs.\nThere are three common types of pet insurance:\n*   **Accident-only**: An accident-only policy provides coverage if your pet is injured in a fight with another animal, breaks their bones, eats something toxic or is otherwise hurt.\n*   **Wellness**: A wellness plan covers routine care, such as checkups and vaccinations. Depending on the type of pet you have and the insurer you choose, wellness coverage may also include deworming and spaying or neutering.\n*   **Accident\/illness**: This type of plan covers your pet for injuries suffered in an accident, as well as sickness such as cancer or other diseases. It may include tests, specialist visits and surgeries.\nSome pet insurance providers may allow you to combine a wellness plan with an accident or accident\/illness plan to reduce your routine care expenses.\nHow each provider defines these categories is up to them, however, so one company might include more services under the wellness heading than others. For example, some insurers might reimburse you for grooming and nail trimmings. Others might see grooming as falling outside the wellness umbrella, in which case you'll need to pay for those costs out of pocket. Things like prescription food or medicated shampoo might also be covered by some plans and excluded from others.\nIf you decide to take out a pet insurance policy, it's often wise to request quotes from several providers to compare costs and coverage terms to find the best deal. END
 TITLE: Do You Need Pet Insurance? CONTENT: How to Decide if You Need Pet Insurance\n---------------------------------------\nDeciding whether to purchase pet insurance is a personal decision. Only you know your pet's needs and can gauge whether you'll need the coverage often enough to justify the premiums. But if you're on the fence, there are a few factors to consider:\n*   **Your pet's age**: The older an animal gets, the greater the chances that they will develop an illness that requires tests, surgeries and even ongoing medication.\n*   **Your pet's overall health**: If you know your pet is predisposed to a certain condition, or you've adopted an animal and aren't sure about its medical history, insurance can serve as a buffer against paying for unexpected health problems.\n*   **Your pet's breed**: Some pet breeds are more prone to serious health issues than others, and treating them can cost thousands of dollars. Large dogs have increased risks of heart disease and arthritis, for example, while pugs are more likely than other breeds to suffer hip dysplasia. Meanwhile, mixed-breed dogs are often cheaper to insure than purebreds because they have a lower risk of genetic disorders, according to the North American Pet Health Insurance Association. Researching your pet's breed, or talking with your vet about common breed issues, may help you decide whether pet insurance is right for your situation.\nOf course, these are just guidelines. Any pet can become ill or suffer serious injuries that require costly medical care. Embrace Pet Insurance found that intestinal issues were the most common claim for both cat and dog owners in 2018, with costs reaching $900 and $790, respectively. Other problems, such as feline leukemia or a ligament tear in your dog's legs, can cost several thousand dollars, according to Embrace.\nThere's also your own peace of mind to consider. Knowing you have insurance may put you at ease, and it can also alleviate financial stress when you're trying to make critical decisions about your pet's care.\nHaving pet insurance also may make you more willing to take advantage of things like checkups and grooming, making for a happier and healthier pet. If having pet insurance makes you more likely to engage in preventive care, you may save money by catching illnesses early and dealing with them before they require more long-term care or emergency intervention. END
 TITLE: Do You Need Pet Insurance? CONTENT: How Much Does Pet Insurance Cost?\n---------------------------------\nThe cost of your pet insurance will vary based on the type of plan you choose and the level of coverage you need. Progressive, for instance, offers plans that reimburse 70%, 80% or 90% of your vet costs after your deductible.\nThe deductible for pet insurance works the same way as it does with health or auto insurance. It's the amount of money you're required to spend out of pocket before your coverage kicks in. So, if your pet insurance deductible is $500, that's how much you'll need to put toward your animal's care before you can start receiving reimbursements. Sometimes you can lower your insurance premium―the monthly or annual fee you pay for the plan—by agreeing to a higher deductible.\nA number of factors will affect your pet insurance, including:\n*   Pet's age\n*   Pet species and breed\n*   Deductible\n*   Type of plan you choose\n*   Level of reimbursement coverage\nBefore you start shopping for policies, think about how much you can afford to pay in premiums, deductibles and other out-of-pockets costs. You may also want to make a list of the top services you want covered, as well as any medical issues you anticipate your pet facing. Those parameters will help you choose a plan after you receive quotes from providers. END
 TITLE: Do You Need Pet Insurance? CONTENT: Do Pet Insurers Check Credit Scores?\n------------------------------------\nOne thing that is unlikely to affect your rate is your credit. It's somewhat murky as to whether pet insurers will use credit scores in any form to determine your policy cost, but the elements listed above will play a far more significant role even if your credit is a factor.\nSome states ban the practice of insurers using credit as a factor in insurance premiums, while others allow it. Some insurers in some states may use it as a factor in pet insurance. Regardless, it's always beneficial to maintain good credit by paying your bills on time and keeping your credit card balances low. END
 TITLE: Do You Need Pet Insurance? CONTENT: How to Shop Around for Pet Insurance\n------------------------------------\nYou can buy pet insurance from a company that specializes in pet policies or from traditional insurers that also offer policies such as homeowners or auto insurance. You may be able to get pet insurance through an existing insurer, and you may even get a discount for bundling it with your other plans.\nSome animal organizations, such as the American Society for the Prevention of Cruelty to Animals (ASPCA) and the American Kennel Club (AKC), offer pet insurance as well.\nWhile cost may play a role in your choice, it's important to take a comprehensive view of any offer. A few things to look out for:\n*   Are there any coverage exclusions (meaning conditions that will not be covered)?\n*   Does a wellness policy include grooming and other routine care?\n*   Does the policy include dental cleanings or oral surgeries?\n*   Is there a cutoff age for insuring older pets?\n*   What are the coverage limits (meaning what is the maximum reimbursement)?\n*   What is the monthly premium?\n*   What is the deductible?\nOne plan may have an attractive low monthly premium, but if it doesn't offer protection for many of the services you expect your animal to need, it may not save you much money in the long run. END
 TITLE: Do You Need Pet Insurance? CONTENT: How to Save Money on Pet Insurance\n----------------------------------\nIf you opt to take out pet insurance, there are ways to reduce your overall costs.\n1.  Pay a higher deductible. This can lower your monthly premiums, but you may want to create an emergency fund for your pet with enough money to cover the deductible in case he or she needs urgent, high-cost care.\n2.  Look for a young pet. If you're still looking for a new pet and want to reduce your costs, getting a younger animal may help keep your premiums lower. An older animal may have age-related issues, so insurers typically charge more to cover them.\n3.  Look for deals. Talk with your current insurance provider about whether they can give you a bundling discount or another deal on a pet policy. You may also want to call different insurers directly, rather than just getting online quotes, and asking about any discounts or deals they may provide that aren't advertised on their sites.\nPaying attention to your animal's overall well-being can also help you save, not to mention give you more options when it comes to qualifying for insurance. Keeping your pet at their vet-recommended weight and making sure they get plenty of exercise and affection may also help them stay healthy. And the longer they are healthy and loved, the longer they will be your trusted companion and a joyful part of your life. END
 TITLE: How to Make Passive Income CONTENT: What Is Considered Passive Income?\n----------------------------------\nPassive income is money you earn without actively working. It typically requires some work (and investment) upfront, but requires little day-to-day maintenance. For instance, if you're a graphic designer who sells premade designs online rather than working on a project basis for clients, you're earning passive income. Or, if you're a consultant, creating a course people can purchase rather than offering live trainings or one-on-one sessions might be a path to passive income. Investment earnings are also considered passive income.\nYou may owe taxes on passive income, depending how much you earn and how much time you spend on any residual business. However, the tax rules may vary based on the type of passive income sources you have. To avoid overlooking any obligations or deductions, you may want to work with a tax expert when it's time to file, especially if you have multiple income sources. END
 TITLE: How to Make Passive Income CONTENT: Quick Ways to Earn Passive Income\n---------------------------------\nIf you want to start earning passive income quickly, there are a few ways to go about it. The options below require a minimal financial investment, so if you're tight on cash, you can still get started right away.\n*   **Open an investment account.** There are more options than ever for diving into investing. You can take a traditional approach and set up a fund through a bank or investment advisor, or you can use a mobile app to start investing immediately. There are even micro-investment apps that build up your investment in small increments over time. The Acorns app, for example, links to your checking account and rounds up every purchase you make to the nearest dollar, putting your spare change into your investment fund. That can be a low-cost way to start investing, and you can ramp up your deposits as you earn more money. Investing comes with significant risk, so it's best to only use extra income you don't need to put toward other necessities.\n*   **Rent out a parking space or spare vehicle.** If you live in a city with a parking shortage, you might consider renting out your street space or a spot in your driveway or garage. No one likes to walk a mile from their car to the office, so you may be able to earn a few hundred dollars each month just by letting someone park at your home on weekdays. You can also rent out your vehicle through car-sharing apps such as Turo and Getaround. Another option is renting your vehicle out to Uber and Lyft drivers through HyreCar. At the very least, you may be able to cover your monthly auto loan payments by making your car or parking spot work for you.\n*   **Use a cash back rewards credit card.** Many credit cards come with a cash back rewards feature, which is a great way to earn money while you shop. Look for a card that offers rewards in categories you often use, such as groceries or restaurant meals. That way, you can accrue extra cash every time you use the card. If you're not sure which cash back card to choose, Experian CreditMatch™ can help you find an option.\n*   **Sign up for cash back or coupon apps.** A number of sites, such as Rakuten and Ibotta, allow you to earn cash back by using their browser extensions and earning rewards when buying from a wide range of brands. You can also sign up for coupon sites and apps (think RetailMeNot, Honey and Coupons.com) that provide promo codes and deals for a variety of products. END
 TITLE: How to Make Passive Income CONTENT: How to Make Passive Income When You Have Extra Time and Money\n-------------------------------------------------------------\nIf you can make a larger investment in your passive income venture, consider these options:\n*   **Set up an affiliate marketing business.**  marketing allows you to earn money by promoting products. When you create an affiliate account with a brand, you receive a customized link you can share with friends, family, blog readers or a social media audience. When they use the link to purchase the product, you earn a commission. If you already have a well-read blog or a social media following, you can begin incorporating affiliate links in your posts. (Keep in mind: You'll likely have to disclose that you'll earn money if they use the link in accordance with U.S. law.)\n*   **Buy a rental property.** Purchasing a rental property can be a great way to earn passive income, particularly if you buy in a popular vacation area or an in-demand neighborhood. You'll want to research the market thoroughly beforehand, including the average rent on similar properties. If the property is supposed to supplement or replace your current income, you'll need to charge enough to cover your mortgage payments and then some. It's also important to consider who will maintain the property and address tenant needs, particularly if you don't live nearby. But under the right circumstances, a rental property can be a great option for earning passive income.\n*   **Rent out part of your home on Airbnb.** If you have a spare room that rarely gets used or an apartment over the garage that currently functions as a storage space, you may be able to earn income by fixing it up and renting it out on Airbnb or other vacation rental platforms.\n*   **Create a series of books or an online course.** If you have a special skill or area of expertise, you can create a book or series of books to sell to professionals or consumers. Or you can film courses or seminars and sell those online through sites such as Udemy. After the initial work is done, you may reap sales long into the future.\n*   **Become a peer-to-peer lender.** Peer-to-peer (P2P) lending platforms, such as Prosper, allow you to loan money as part of a pool of lenders. You earn interest on the loans as the borrowers pay them back.\nAdditional Ways to Make Money Fast\n----------------------------------\nEstablishing passive income can take some time and possibly a big initial investment. But there are many ways to free up room in your budget or make money fast.\n*   **Shop generic.** Trim your grocery budget by buying store brand products and only picking up produce and meat that are on sale.\n*   **Find a side gig.** Driving for a ride-hailing app or becoming a shopper through a service such as Instacart can help you earn extra money outside of your full-time job.\n*   **Negotiate your bills.** If you have auto insurance and homeowners or renters insurance, request quotes from several providers to see if you can get a better rate. Your current insurance company may also offer special discounts if you bundle policies with them. If you're struggling with credit card debt, you can call the card companies and ask to negotiate your interest rate or adjust your repayment plan.\n*   **Take out a personal loan.** An unsecured personal loan can provide you with a lump sum of cash to deal with emergency expenses or to streamline your debt and reduce your monthly payments.\nOnce you've created steady passive income streams, you can build up your savings and lower the chances of needing to make money fast under pressure. Diversifying your income not only helps you avoid a crisis if your employer shuts down or you need to take time off work, but it also gives you more freedom. You may feel more comfortable taking risks, such as starting the business you've always dreamed of, knowing that you have enough money coming in regularly to afford your basic needs.\nIf you've never explored passive income options before, you may want to start with one or two ideas and learn as you go. But ultimately developing several sources of income can provide you with greater financial security and opportunities. END
 TITLE: How to Make Passive Income CONTENT: Additional Ways to Make Money Fast\n----------------------------------\nEstablishing passive income can take some time and possibly a big initial investment. But there are many ways to free up room in your budget or make money fast.\n*   **Shop generic.** Trim your grocery budget by buying store brand products and only picking up produce and meat that are on sale.\n*   **Find a side gig.** Driving for a ride-hailing app or becoming a shopper through a service such as Instacart can help you earn extra money outside of your full-time job.\n*   **Negotiate your bills.** If you have auto insurance and homeowners or renters insurance, request quotes from several providers to see if you can get a better rate. Your current insurance company may also offer special discounts if you bundle policies with them. If you're struggling with credit card debt, you can call the card companies and ask to negotiate your interest rate or adjust your repayment plan.\n*   **Take out a personal loan.** An unsecured personal loan can provide you with a lump sum of cash to deal with emergency expenses or to streamline your debt and reduce your monthly payments.\nOnce you've created steady passive income streams, you can build up your savings and lower the chances of needing to make money fast under pressure. Diversifying your income not only helps you avoid a crisis if your employer shuts down or you need to take time off work, but it also gives you more freedom. You may feel more comfortable taking risks, such as starting the business you've always dreamed of, knowing that you have enough money coming in regularly to afford your basic needs.\nIf you've never explored passive income options before, you may want to start with one or two ideas and learn as you go. But ultimately developing several sources of income can provide you with greater financial security and opportunities. END
 TITLE: Everything You Need to Know About Credit-Builder Loans CONTENT: How Do Credit-Builder Loans Work?\n---------------------------------\nAccording to the Consumer Financial Protection Bureau, credit-builder loans generally come in increments of $300 to $1,000. You'll make payments toward these loans over six to 24 months, and you won't have access to the money you've paid until that time frame is over. But the lender reports your timely payments to the three major credit bureaus (Experian, TransUnion and Equifax), and once your loan term is up, you'll have savings you didn't before, making a credit-builder loan doubly useful.\nWhen choosing a loan amount, consider a small one with easily affordable monthly payments, especially if you're on a tight budget. Repaying the loan on time is the most important factor for your credit scores, not its size.\nYou'll pay interest on the loan, but the lender may return a portion of that interest—sometimes referred to as \"dividends\" by the lender—to you at the end of the loan term. When choosing a credit-builder loan, make sure you understand its interest rate, any fees you'll pay, and the lender's policy on whether you'll receive the interest that has accrued.\nYou may not need to undergo a traditional credit check to apply for a credit-builder loan. Instead of using your credit score as a baseline for approval, some lenders may use your banking history through the consumer reporting agency ChexSystems. In this case, activities like bounced checks could affect whether you're approved for a loan.\nTo get most credit-builder loans, you'll need to provide some or all of the following:\n*   Employment information\n*   Pretax monthly income (lenders may allow you to keep any alimony or child support you receive out of this total)\n*   Pay stubs as proof of income\n*   If self-employed, tax returns as proof of income\n*   Total housing payment\n*   Other loan balances\n*   Checking and savings account balances\n*   References END
 TITLE: Everything You Need to Know About Credit-Builder Loans CONTENT: Where to Get a Credit-Builder Loan\n----------------------------------\nYou likely won't find a credit-builder loan at a large national financial institution, if that's where you do most of your banking. Instead, try these options:\n*   **Credit unions**: Many credit unions offer credit-builder loans; search your local institutions' websites to see your options. You'll need to become a member of the credit union to get a loan, and you'll qualify based on characteristics such as where you work or where you live. To join, you'll pay a small membership fee or donate to a partner charity.\n*   **Community banks**: These locally owned banks may also offer credit-builder loans, and have a similar focus on financial education as credit unions. Search for a community bank near you using the Independent Community Bankers of America's search tool.\n*   **Online lenders**: Self Financial offers online credit-builder accounts, which are similar to credit-builder loans in that borrowers make monthly payments toward a savings account. You'll pay a one-time fee of $9 to $15 to sign up, depending on the loan balance.\n*   **Lending circles**: Peer groups can help each other build credit using lending circles, which offer interest-free loans usually facilitated by a community organization. The group decides on a monthly payment and loan balance, and each member pays the same amount per month to a central fund. Every month, one member receives a loan in the agreed-upon balance. In the meantime, monthly payments are reported to the three credit bureaus. One way to look up lending circles in your area is by using the nonprofit Mission Asset Fund's database. END
 TITLE: Everything You Need to Know About Credit-Builder Loans CONTENT: How Can a Credit-Builder Loan Help My Credit?\n---------------------------------------------\nA credit-builder loan is a type of installment loan, which has fixed monthly payments. Paying off installment loans on time contributes to healthy credit scores. In fact, payment history across all your accounts—including credit cards, student loans, auto loans and credit-builder loans—makes up 35% of your FICO® Score☉ , the largest share.\nCredit-builder loans help you build credit if you don't yet have any accounts, and they can help restore credit if you have negative marks, like missed payments, on your credit report. By making on-time payments, you'll show lenders you can be trusted to take on other lines of credit in the future. A good credit score—one that's 670 or higher, according to FICO's model—can get you access to rewards credit cards or loans at more favorable interest rates. END
 TITLE: Everything You Need to Know About Credit-Builder Loans CONTENT: Other Options for Rebuilding Your Credit\n----------------------------------------\nGetting a credit-builder loan isn't the only way to give your credit profile a boost. You can also use one or more of these strategies to build credit:\n*   **Opt for a secured credit card**: Unlike a traditional credit card, a secured credit card requires you to make a deposit, generally $200 to $2,000, which becomes your credit limit. That protects the card issuer if you can't pay off the charges. You can use the secured card like a traditional card, charging small amounts and paying your full balance each month. Over time, if you use the card responsibly, the bank may be willing to convert it to a regular unsecured credit card account. Make sure the issuer reports your account activity to the credit bureaus so the card will, in fact, help you build credit.\n*   **Ask a family member to add you as an authorized user**: Authorized users on credit card accounts are not responsible for making payments, but they can still use the account. Payment history will appear on their credit reports. Not all creditors report authorized user accounts to the credit bureaus, though, so ask before being added.\n*   **Apply for a secured personal loan**: A secured loan is one backed by collateral, which the lender could take possession of if you don't repay the loan as agreed. While a secured personal loan can help you build credit, the prospect of losing the collateral you put up—such as your car—could make this a riskier option than, say, a secured credit card that requires a small cash deposit.\n*   **Apply for an unsecured personal loan**: Unsecured loans aren't backed by collateral, so they may have higher interest rates and be harder to get than secured personal loans. Lenders will look at your income, credit scores and other financial obligations that affect whether you can repay the loan. But like secured personal loans and other installment loans, making on-time payments can bolster your credit score. END
 TITLE: Everything You Need to Know About Credit-Builder Loans CONTENT: The Bottom Line\n---------------\nCredit-builder loans could help improve your credit and savings momentum at once. Because they're often supplied by community banks and credit unions, they also give you the opportunity to bank locally, if that's important to you. If your credit report is thin, you might find a credit-builder loan could help you reach the next level of financial know-how. END
 TITLE: How to Pay Off $25K in Debt Fast CONTENT: Reduce Your Interest Rates\n--------------------------\nReducing the amount of interest you pay on loans and credit cards each month is an important step to take when paying down a mountain of debt. You can use the money saved on interest to make larger payments, which will help you knock out the debt faster.\nThere are a few ways to reduce your interest, depending on the type of debts you have.\n*   **Credit cards**: If you're paying high interest on your credit cards, you can ask your card issuers for a rate reduction if your credit score has improved or if you're facing financial hardship.\n*   **Student loans**: You may be able to refinance both federal and private student loans to reduce your interest rate. However, if you refinance federal loans to private ones, you won't be eligible for government programs such as income-based repayment. That's why it's important to consider how much you owe and whether refinancing could help you pay off the debt faster. If you're carrying federal loans with high balances, you may want to leave them as is in case you need to utilize such relief options.\n*   **Personal loans**: Refinancing is also an option if you are paying down a high-interest personal loan. You may be able to save a considerable amount of money in interest and pay off your debt faster this way, which can ultimately help build your credit and improve your financial situation.\n*   **Auto loan**: If your credit has improved since you first took out your car loan, you may want to refinance, especially if interest rates have dropped as well. Keep in mind, though, that refinancing to a new loan can extend your repayment period, which means you'll be in debt longer. If you're keen on paying off your debts quickly, make sure to ask your lender whether they charge a prepayment penalty for eliminating the balance before the end of the loan term.\nYou might also consider taking out a debt consolidation loan. With this option, you can use a personal loan to pay off your other debts, streamlining all your accounts into a single monthly payment. A debt consolidation loan will likely work best if you have good credit so that you can qualify for a low interest rate. Your goal is to reduce the amount of interest you're paying, so you want to make sure you'll be saving money before you apply for a personal loan. END
 TITLE: How to Pay Off $25K in Debt Fast CONTENT: How to Reduce Credit Card Debt Fast\n-----------------------------------\nIf you're particularly struggling with high credit card balances, you'll want to bring them down as quickly as possible because credit cards tend to charge much higher interest rates than personal loans, student loans and other types of debt.\nIn addition to measures such as adding income and trimming your budget (see below for more), the following steps can help you get your credit card debt under control.\n*   **Stop using your credit cards.** Putting yourself on a cash- or debit-only spending plan will reduce the risk of overspending since you're constrained by what's in your wallet or checking account. Then chip away at the current balances with whatever extra money you can find in the budget.\n*   **Pay more than the minimum amount due each month.** It's important to pay at least the minimum payment each month to avoid a late payment, but just paying the minimum on all your credit cards will prolong your repayment period and increase the interest you'll ultimately pay. Come up with a plan for paying more on your cards every month (more on this below).\n*   **Consider a balance transfer credit card.** Assuming you have good credit, you can look for a card that offers low-cost balance transfers and which has a 0% interest introductory rate. You can transfer high-interest balances onto the new card, and know that all the payments you make during the intro period are going toward your balance rather than interest. But keep in mind you'll likely have to pay a balance transfer fee, which typically adds 3% or 5% of the transferred amount to the total. END
 TITLE: How to Pay Off $25K in Debt Fast CONTENT: Utilize Debt Repayment Strategies\n---------------------------------\nIt helps to have a plan for how you're going to tackle your debt. Two popular approaches are the debt avalanche and debt snowball strategies. Although these methods are typically used to pay off high-interest credit cards, you can apply them to all types of debt.\n**Debt avalanche**: With the debt avalanche plan, you make the minimum monthly payments on all of your debts except the one with the highest interest. You put as much as you can afford each month to that high-interest debt until it's paid off. Then, once that debt is cleared, you move to the second-highest interest debt and repeat the process until all of your debt is repaid.\n**Debt snowball**: Under the debt snowball approach, you make the minimum monthly payments on all of your accounts except the one with the smallest balance. You prioritize the smallest debt, paying as much each month as you can, until it's paid off. After you've paid down that account, you apply the same approach to the second-smallest balance.\nAs you can see, the debt avalanche and debt snowball methods are similar philosophically, but differ in practice. The avalanche method will likely save you more money over the snowball method, but the snowball method may be easier to stick to since it provides faster and more frequent gratification. It really comes down to your preference and which strategy fits your timeline best. In either case, you'll make faster progress and save more on interest than simply paying your monthly minimums on all accounts. END
 TITLE: How to Pay Off $25K in Debt Fast CONTENT: Earn Additional Income and Cut Spending\n---------------------------------------\nThe fastest ways to reduce your debts overall are to earn more money and cut down on your spending. Even if your full-time job doesn't offer many opportunities to increase your hours, there are other ways to boost your income:\n*   Pick up extra shifts at work or volunteer for overtime, if that's an option at your job.\n*   Turn a hobby, such as making crafts or baked goods, into an income stream.\n*   Pick up odd jobs through sites like TaskRabbit and Thumbtack.\n*   Sell unused furniture or old household items.\n*   Offer tutoring or personal assistant services.\n*   Sign up for a ridesharing or personal shopping service (think Uber or Instacart).\n*   Look for freelance gigs on Fiverr or Upwork.\nRemember, you don't need to permanently change your work schedule or keep a side gig forever. But even a little bit of extra income each week can help you shrink your timeline for paying off that debt.\nIf you're unable to work additional hours, you can free up money by spending less. Once you start looking for ways to cut your budget, you'll be surprised at how many ways there are to save, including:\n1.  Prepare all of your meals (and your morning coffee) at home.\n2.  Buy clothes and other goods secondhand.\n3.  Cancel any subscriptions you don't use (and maybe even some you do), such as newspapers, magazines, streaming services, gym memberships or paid apps.\n4.  Ask your insurance providers for discounts to reduce monthly premiums.\n5.  Clip coupons and use cash back services, such as Rakuten, when online shopping.\nWhen you take measures to save money by reducing expenses, you may find that the habits you adapt while on your debt repayment mission stick with you even after all your balances are paid down. END
 TITLE: How to Pay Off $25K in Debt Fast CONTENT: How to Get Additional Help With Your Debt\n-----------------------------------------\nSometimes debt feels overwhelming and the prospect of coming up with a repayment plan on your own seems untenable. If that happens, you might consider contacting a credit counselor.\nCredit counselors provide debt management advice and assistance in negotiating down your debts. Although creditors are not required to work with credit counseling agencies, many will because even a partial payment is preferential to default for you and the lender. A debt management counselor can negotiate with creditors to lower your total balance or your interest rate, making it easier for you to pay off the account. Debt management plans typically have three- to five-year repayment terms.\nThe downside of working with a credit counseling company is that your credit score may drop at first if you end up repaying less than you originally owed. You'll also likely have to close your accounts, which could affect your credit utilization ratio.\nHowever, once you've entered a debt management agreement, you'll only have to make one payment a month to your credit counselor. They will then distribute the payment to all of your creditors. This can make repayment less stressful since you're no longer handling multiple accounts. Over time, you can rebuild your credit score through on-time payments and improved credit management habits, which your counselor can help you establish. To find a credit counselor, look for reputable nonprofit companies affiliated with agencies such as the National Foundation for Credit Counseling.\nWhen financial difficulties are the cause for your increased credit card debt, financial assistance programs are out there that can help you get your head above water. National, state and local programs exist to help people in many situations handle things like rent payments, utility bill payments, food costs and child care expenses.\nIf your credit score has suffered because of your debt, you may want to sign up for Experian Boost™† , which can help you raise your credit scores powered by Experian instantly. A strong score is essential for future financing opportunities, so you'll want to do everything you can to protect your credit even while paying off debt. You can also use Experian CreditMatch™ to find balance transfer credit cards if you want to reduce your monthly interest payments fast. END
 TITLE: How to Get a Credit Card if You Don’t Have a Credit History CONTENT: Card Options for Those Without a Credit History\n-----------------------------------------------\nA secured credit card is a good option for building credit if you don't have a credit history because the criteria for opening an account are less strict than with a standard unsecured card. With a secured credit card, you put down a refundable deposit to guarantee your account. The amount you'll be required to deposit varies based on the card issuer and credit card.\nThe deposit reduces the card issuer's risk, because they can use your deposit to cover what you owe if you default on the account. If you manage the card responsibly by making your payments on time each month and keeping the balance low, you may build a credit history that will eventually qualify you for an unsecured card and a higher credit line.\nDepending on the secured card you choose, your deposit may serve as your credit line. For example, if your deposit is $350, that's how much credit you'll have available. Once the account is open, you can make purchases, pay down the credit line and repeat the cycle just as you would with any credit card.\nSecured credit card issuers offer varying credit lines, may or may not charge an annual fee and other fees, and may or may not report to all three credit bureaus. That's why it's important to research several cards before submitting an application.\nHere are a few secured credit cards that report to all three credit bureaus and can help you build your credit:\n*   **The OpenSky® Secured Visa® Credit Card**: This secured card offers two major perks to people with little financial and credit history: It doesn't require a credit check and doesn't even require you to have a bank account. The The OpenSky® Secured Visa® Credit Card allows you to set your own credit line based on your deposit, though there is a $200 minimum. The annual fee is on the lower end, at $35 per year.\n*   **Secured Mastercard® from Capital One**: The refundable security deposit for the Secured Mastercard® from Capital One starts at $49 to get a $200 initial credit line. You may be eligible for a credit line increase with no additional deposit in as little as six months based on your account activity.\nIf you're not sure which secured card to choose, Experian CreditMatch™ can give you recommendations to help you get started with building your credit history. END
 TITLE: How to Get a Credit Card if You Don’t Have a Credit History CONTENT: How to Establish Credit\n-----------------------\nOnce you've opened an account, there are several steps you can take to build credit with your new card:\n1.  Make all payments on time. Your payment history is the biggest factor in your credit score, and one of the most important elements lenders look at when deciding whether to approve you for a credit card or loan. Ensuring that you make payments by the due date every single month can help you steadily increase your credit score.\n2.  Keep your account balance low. When you max out your credit line, it can appear as a red flag as far as your credit risk is concerned. Since your credit utilization ratio is the second most important factor in calculating your credit scores, your credit account balances can make a big difference. Keeping your balance low, or ideally paying it off every month, demonstrates strong money management skills and can help improve your credit scores.\n3.  Use the card consistently. You're trying to create a record of on-time payments and smart debt management, which you can do by using the card regularly. Putting expenses such as groceries, take-out meals or even small bills on the card each month, and then paying the balance off, allows you to show consistency in your financial behaviors.\n4.  Ask for a credit line increase. Credit card issuers sometimes raise your credit line automatically if you've been paying your bills on time and have kept your balance low. But you can also request an increase after several months of on-time payments. A higher credit line gives you more wiggle room to better keep your balances at 30% or less, which improves your utilization ratio and can raise your credit scores.\n5.  Take out a credit-builder loan. With a credit-builder loan, you won't receive any money upfront. Instead, your lender deposits the loan amount into an account for you, and you make payments toward the loan each month. Once you've completed your payment term, you gain access to the funds. The lender will report those payments to the three credit bureaus, which add them to your credit files helping build your credit history.\n6.  Become an authorized user on someone else's account. When you become an authorized user on a credit card account, that credit line and payment history appear on your credit report. If you have a close relative or friend who manages their credit well and makes payments on time, this can be a great option for getting some positive activity on your report. However, if the main account holder is late with their payments or charges up high balances, being an authorized user won't help you. END
 TITLE: How to Get a Credit Card if You Don’t Have a Credit History CONTENT: Tips for First-Time Credit Card Users\n-------------------------------------\nPerhaps the best thing you can do as a new credit card user is to not bite off more than you can chew. In other words, keep purchases small so you know you'll be able to pay your bill in full each month. Not only does this keep your credit utilization ratio low, it also helps you avoid paying interest.\nWhen you have a high balance with a high interest rate, the amount you owe can escalate quickly and become unmanageable. Being mindful of your budget may save you money and help you build an excellent credit score.\nIf you can't pay off your total balance, still make an effort to pay more than the monthly minimum. While you'll still pay interest, you'll owe less than you would if you only paid the minimum. The bigger your payments each month, the more you will save.\nBecause paying your bill on time is essential, consider paying early if you're able to, which may give you peace of mind knowing that you don't have to worry about late fees and negative remarks on your credit report. If you're worried you may miss payments, consider setting up autopay; just be sure you have enough money in your bank account to cover the payment each month. END
 TITLE: How to Get a Credit Card if You Don’t Have a Credit History CONTENT: What to Do if You're Denied for a Credit Card\n---------------------------------------------\nIf you're denied for a credit card, look out for a letter from the lender. Under the Fair Credit Reporting Act, lenders are required to tell you why they turned down your application in what's called an adverse action letter. You also have a right to a free credit report from the credit bureau the lender used to evaluate your credit. To get your free credit report from Experian, go to our Denied Credit page. The information in that letter can help you identify areas to work on to build your credit.\nYou can also call the lender directly and ask a specialist for more insight into the denial. If you believe you have a case for being approved, you may be able to ask the specialist to reconsider the decision.\nBarring a reversal, remember that there are other options for building credit, such as becoming an authorized user or opening a credit-builder loan. Experian Boost™† can also help you by pulling in data from on-time payments on your utilities, phone and even streaming services such as Disney+™, HBO Max™, Hulu™ and Netflix® to increase your credit scores powered by Experian.\nMonitoring your credit and knowing the types of activities that may appear on your report is key, because you want to make sure all the data is accurate. Even if you're denied for a credit card right now, seeking out opportunities to demonstrate responsibility and reliability can go a long way toward helping you qualify for quality cards in the future. END
 TITLE: 5 Homebuying Myths Debunked CONTENT: Myth #1: I Have Too Much Debt\n-----------------------------\nBefore a mortgage lender gives their stamp of approval, they'll want to make sure your monthly budget can easily absorb your new mortgage payment. They rely on something called your debt-to-income ratio (DTI) to help make this determination. DTI is a snapshot of how much of your monthly income goes toward debt payments, such as student loans, credit cards, personal loans and auto loans.\nSome potential homebuyers may be afraid they have too much debt to qualify for a mortgage—but your debt on its own isn't the most important detail: It's how it relates to your income that matters. If your monthly income allows you to easily pay your debts with plenty left over, a high amount of debt may not be a dealbreaker. That's where DTI comes in.\nTo calculate your DTI, tally up all your monthly debt payments and divide the total by your gross monthly income before taxes (not your take-home pay). Multiply that final number by 100 to see your DTI ratio expressed as a percentage. If yours is under 43%, it may be low enough to qualify for a mortgage, though some lenders prefer a DTI as low as 36%. If your DTI tops 43%, see if it's possible to pay down credit cards or other debts to help you qualify. END
 TITLE: 5 Homebuying Myths Debunked CONTENT: Myth #2: I Don't Make Enough Money\n----------------------------------\nThe general rule for most conventional mortgage loans is that you must keep your new monthly housing costs under 28% of your gross monthly income. This includes your monthly loan principal and interest, plus property taxes, homeowners insurance and mortgage insurance if necessary. For example, if you and your spouse each earn $6,000 per month (before taxes) and are applying for a mortgage together, your monthly payment will likely need to be below $3,360 to qualify.\nKeep in mind, though, that your down payment will also be a big factor. If you've been saving for several years and have a sizable down payment, that will reduce the size of the mortgage you need—as well as your monthly payment. This can help you stay under the 28% limit.\nGetting preapproved for a mortgage can be a great first step for homebuyers as it can help clarify how much home you can actually afford. If preapproved, you'll receive a letter that states the amount of money you're authorized to borrow to buy a home. It's not a guarantee—you'll still need to complete a formal mortgage application—but it can help shape your budget so that you only look at homes that are within your price range. END
 TITLE: 5 Homebuying Myths Debunked CONTENT: Myth #3: My Credit Score Is Too Low\n-----------------------------------\nYou can expect mortgage lenders to pull your credit report during the application process.\nYour recent credit applications, payment history, credit usage and any delinquent accounts you may have will all carry weight in their lending decision. They'll also zero in on your FICO® Score. Generally speaking, a higher FICO® Score opens the door to lower interest rates and better borrowing terms.\nEven so, you don't need perfect credit to qualify for a mortgage. Remember, lenders are looking at your overall financial picture—not just your standalone credit score. This includes your debts, income, assets, down payment amount and loan amount.\nThere isn't one set-in-stone minimum credit score to get a mortgage because every lender is different. The type of loan you apply for also plays an important role. The minimum FICO® Score for a conventional mortgage is generally around 620; however, some government-backed loans have lower credit score requirements.\nRegardless of loan type, it's always best to improve your credit as much as possible before trying to get a mortgage. Doing so can increase your odds of getting approved with the best rates and terms. This, in turn, could end up saving you thousands of dollars over the life of the loan. In some instances, taking a few months to pay down your credit card debt can be enough to increase your score and help you qualify for a more affordable mortgage. END
 TITLE: 5 Homebuying Myths Debunked CONTENT: Myth #4: I Don't Have Enough for a Down Payment\n-----------------------------------------------\nOne of the biggest homebuying myths is that you have to have a 20% down payment. If you have great credit and a reliable source of income, you could qualify for a conventional loan with as little as 3% down. Similarly, qualified borrowers can take out an FHA loan with just 3.5% down. VA loans and USDA loans require no down payment at all.\nJust keep in mind that you'll likely have to pay for private mortgage insurance (PMI) until you've acquired 20% equity in your home, which will increase your monthly mortgage payment. With a conventional loan, PMI can cost anywhere from 0.5% to 2% of the total loan amount. FHA loans charge an upfront premium of 1.75%, plus an annual premium of 0.45% to 1.05% that's broken down and paid on a monthly basis.\nMyth #5: Closing Costs Will Be Outrageous\n-----------------------------------------\nIt's easy for potential homebuyers to get bogged down in all the fees that come with taking out a mortgage. Closing costs vary from lender to lender, but often include charges like the appraisal fee, home inspection fee, loan origination fee and application fee, among other things. You may also be on the hook for charges related to preparing documents, securing title insurance and running your credit.\nOverall, closing costs generally total anywhere from 2% to 5% of the home sale price. They're paid at the very end (at the \"closing table\") when signing all the final home sale documents. Spending 5% on fees alone may give you sticker shock, but again, that may not be your actual total. To be safe, it's best to save up that amount right alongside your down payment if possible. If you end up spending less in the end, think of it as extra money you can put toward other financial goals.  \nThe Bottom Line\n---------------\nWhile buying a home is certainly a huge financial step, it's also a goal that may be more attainable than you might think. The stronger your credit, the better your odds of getting approved. You can check your credit report and credit score for free with Experian so that there are no surprises when you're ready to fill out a mortgage application. END
 TITLE: 5 Homebuying Myths Debunked CONTENT: Myth #5: Closing Costs Will Be Outrageous\n-----------------------------------------\nIt's easy for potential homebuyers to get bogged down in all the fees that come with taking out a mortgage. Closing costs vary from lender to lender, but often include charges like the appraisal fee, home inspection fee, loan origination fee and application fee, among other things. You may also be on the hook for charges related to preparing documents, securing title insurance and running your credit.\nOverall, closing costs generally total anywhere from 2% to 5% of the home sale price. They're paid at the very end (at the \"closing table\") when signing all the final home sale documents. Spending 5% on fees alone may give you sticker shock, but again, that may not be your actual total. To be safe, it's best to save up that amount right alongside your down payment if possible. If you end up spending less in the end, think of it as extra money you can put toward other financial goals. END
 TITLE: How to Change the Title of Your Home CONTENT: Can You Change the Title Name on Your Home?\n-------------------------------------------\nIt's possible to get a title change on your home's deed, though this is different from changing the name on the mortgage. The deed is the legal ownership document that's on file with the government, whereas the mortgage is a loan through a lender.\nWhen you have a mortgage, your lender has an interest in your property and the lender can foreclose if you don't make good on the loan. Once you pay off your mortgage, your county government typically releases the home's deed to you now that you are the sole owner.\nThe process of changing title names on a home varies by circumstance and state. Some may require you have an attorney or title company prepare a new deed for you. END
 TITLE: How to Change the Title of Your Home CONTENT: When Would You Need to Change Title on Your Home's Deed?\n--------------------------------------------------------\nThere are a few situations when you need to change the home's title:\n*   **You get married.** If you get married and change your name, it's smart to also change the title on your home. If you want to add your new spouse to your property deed, you can usually do this through a quitclaim deed. Depending on where you live, you may be able to create a new deed yourself, but in some locations you may need to get it notarized, file it with your county clerk, and\/or utilize an attorney.\n*   **You get divorced.** Even if you don't plan to sell your home after divorce, there may be a name change, or one partner may want to be removed from the home's title. Depending on where you live, you may be able to handle this through a quitclaim. If you have a joint mortgage, you may be able to go through this process with your lender. In either case, it's best to consult a lawyer if possible.\n*   **Your spouse dies.** When your spouse dies, you may become responsible for some of their debt, but a home title may require no action. If you owned your home as joint tenants with a right of survivorship, you won't need to update the title or deed: It automatically transfers to the surviving spouse. If you decide to sell the home, however, you may need to provide the death certificate since your spouse's name will be on the deed. Another thing you don't need to worry about during this difficult time is updating your loved one's credit report.\n*   **You inherit a home.** If you inherit a home after a loved one dies, you'll need to update the title. If the homeowner had a transfer-on-death beneficiary deed, their beneficiaries can likely take ownership of the property without going through probate. END
 TITLE: How to Change the Title of Your Home CONTENT: How to Change Your Name on Your Credit Report\n---------------------------------------------\nIf you're changing title on your home's deed, make sure it's updated everywhere. Changing your last name doesn't affect your credit, however; it's simply added to your existing report.\nThe best way to change your name on your credit report is to update your name on your accounts with your lenders. Your new name should begin to appear on your credit report within a few months. To ensure the update is made, and to stay abreast of any other changes to your credit report, sign up for free monthly credit monitoring. END
 TITLE: Can a Broken Lease Affect Buying a House? CONTENT: What Happens if You Break a Lease Early?\n----------------------------------------\nWhat happens when you break a lease early depends on the lease terms and state and local laws. In most cases, you will lose your security deposit, and you may have to pay other fees. If the landlord cannot find a replacement tenant, they may charge you rent for the months remaining on the lease.\nIf you don't pay the amount owed, the landlord may sue you. If you lose, you may wind up having to pay court costs as well as the money you owe; the judge might garnish your wages to do so.\nRather than spending the time and money on a lawsuit, the landlord may prefer to turn your debt over to a third-party debt collector, who will pursue you for the money you owe. If you still don't pay, the debt collector could potentially sue you. END
 TITLE: Can a Broken Lease Affect Buying a House? CONTENT: Can Breaking a Lease Affect Your Ability to Apply for a Mortgage?\n-----------------------------------------------------------------\nBreaking a lease won't show up on your credit report. However, if you don't pay your outstanding charges and your account is sold to a collection agency, that debt will appear on your credit report.\nAn account in collections has a negative impact on your credit that can make it harder to get favorable terms on a mortgage loan. Because collection accounts remain on your credit report for seven years, they can affect your credit far into the future. (Silver lining: As they age, collection accounts have less impact on your credit score.)\nYou may have been instructed by a real estate professional to pay off any collections before you close on a mortgage. Fannie Mae and Freddie Mac, the major government-backed mortgage companies, do not require borrowers to pay off collection accounts before single family home mortgage approval, and paying off accounts in collections may not improve your credit score either. Credit bureaus aren't required to remove paid accounts from your credit report. Newer credit scoring models, including FICO 9 and VantageScore 3.0 and 4.0, ignore collections that have a zero balance, but older credit scoring models—including the ones typically used by mortgage lenders—do not.\nBroken leases often appear in your tenant screening report, which some mortgage lenders review when considering your loan application. Even if they don't, the lender may ask your previous landlords about your payment history, and a broken lease may prevent them from giving you a glowing evaluation when a mortgage lender calls. END
 TITLE: Can a Broken Lease Affect Buying a House? CONTENT: How to Break a Lease Without Ruining Your Credit\n------------------------------------------------\nIn many cases, the following are legally justifiable reasons to break a lease without it impacting your credit.\n*   **The home is uninhabitable.** Landlords must maintain property in livable condition. If your heating, power or plumbing doesn't work or the property is infested by vermin, you may be justified in breaking the lease.\n*   **Your peace is breached.** You have a right to reasonable peace and quiet in your home. If your landlord visits without notice or permission, your neighbors play loud music all night, or unnecessary remodeling goes on for months, your peace may be considered breached.\n*   **You're entering active military duty.** If you signed your lease and then entered military service, you can terminate the lease anytime. If you signed _after_ joining the military, you can break the lease only if you've been ordered to deploy for 90 days or more or to permanently change your station.\n*   **Your lease has a built-in termination clause.** Some leases specify ways you can break the lease without consequences—for example, by paying a certain number of months' rent.\n*   **You're in danger.** If you're being harassed or stalked, are a victim of domestic violence, or have been sexually assaulted, you may be able to break your lease.\nTenant-landlord laws vary from state to state and even city to city. The terms of your lease also may include grounds in which you can terminate the lease early. Check the specific terms of your lease as well as state and local laws to see if you can legally terminate the lease. END
 TITLE: Can a Broken Lease Affect Buying a House? CONTENT: Protect Your Credit When Breaking a Lease\n-----------------------------------------\nIf you do have to break a lease, reach out to your landlord as soon as possible, get the amount you owe in writing, and pay it before you move. Keep records of your payments in case of any questions later. Check your credit report and credit scores a few months after moving to make sure no collection accounts appear and verify that breaking the lease hasn't affected your credit. As you get your credit ready for a mortgage, set up free credit monitoring to keep tabs on your credit and get alerts of any problems that could cause a bump in the road. END
 TITLE: Credit-Builder Loans vs. Secured Credit Cards: Which Is Best? CONTENT: What Is a Credit-Builder Loan?\n------------------------------\nA credit-builder loan is a loan product that can help you build credit and save money. It doesn't quite work like a traditional loan, though.\nInstead of receiving funds if you're approved, the lender puts the loan amount into a savings account. You'll make payments to the lender for six to 24 months, depending on the loan term. Once the loan term is up, the full amount of the loan is disbursed to you. (Some lenders also return the interest that accrued while you were repaying the loan.)\nEach payment you make is reported to the three major credit bureaus (Experian, TransUnion and Equifax) to help build your credit. Making every payment on time can help you prove yourself as a responsible borrower and increase your credit scores.\nCredit-builder loans are offered by credit unions, community banks, online lenders and lending circles. They are usually available in increments of $300 to $1,000.\nWhen you apply, most lenders will ask you to provide the following:\n*   Employment information\n*   Income (pay stubs if you're employed or tax returns if you're self-employed)\n*   Monthly housing payments\n*   Outstanding balances on existing loans\n*   Checking and savings account balances\n*   Personal references\nSome lenders do not require a credit check when applying for a credit-builder loan. Still, they may review your banking history through ChexSystems. So, you could get approved if you have less-than-perfect credit but exceptional banking history. END
 TITLE: Credit-Builder Loans vs. Secured Credit Cards: Which Is Best? CONTENT: What Is a Secured Credit Card?\n------------------------------\nA secured credit card is another option that can help you build or rebuild your credit. These cards are designed for risky consumers who may have trouble qualifying for traditional credit cards because they have minimal or no credit history or bad credit.\nSecured cards differ from traditional unsecured cards because you'll be required to put down a refundable security deposit when opening the account. This deposit is usually equivalent to the credit limit you'll have on the card, but some credit card issuers will grant a credit limit that's higher than your initial deposit or raise your limit later on without an additional deposit. If you default on your payments, you'll face credit consequences and lose your deposit.\nYou are free to use the card as you see fit up to the credit limit. The security deposit will remain on file unless you close the card or the creditor decides to upgrade you to an unsecured account. Either way, the deposit will be refunded to you if the account is closed in good standing.\nSecured credit cards are offered by traditional banks, online banks, credit unions and other financial institutions. You can get a card by applying on the card issuer's website or visiting a brick-and-mortar branch (if applicable). In most instances, you will receive a credit decision in minutes. If you're having trouble finding a secured credit card, Experian CreditMatch™ can help you explore your options. END
 TITLE: Credit-Builder Loans vs. Secured Credit Cards: Which Is Best? CONTENT: Which Option Is Best?\n---------------------\nAre you torn between a credit-builder loan and a secured credit card? The best option for you will depend on your needs, financial situation and other factors.\nCredit-builder loans may be a better fit if you want to save money while establishing or rebuilding your credit. They're also sometimes preferred over secured credit cards because they may not require a credit check and you may pay less in interest for a credit-builder loan than a secured card. In addition, you won't have to worry about the upfront cost associated with a secured credit card if you choose a credit-builder loan.\nHowever, secured credit cards could be more ideal if you require a bit more flexibility. They can be used like regular credit cards, and some offer benefits, like travel and purchase protections and cash back rewards.\nPlus, some secured credit card issuers review accounts occasionally and sometimes grant credit limit increases without requiring an additional deposit. There's a possibility the card can be converted to an unsecured product, which means the credit card issuer will return your security deposit. This is good news if you initially wanted a traditional credit card but didn't qualify because of your credit history. END
 TITLE: Credit-Builder Loans vs. Secured Credit Cards: Which Is Best? CONTENT: How to Build and Establish Credit\n---------------------------------\nCredit-builder loans and secured credit cards are just two ways to build and establish credit. There are other strategies you can use to boost and maintain your credit score. But first, you should understand what affects your credit score. Your FICO® credit score, the one most commonly used by lenders, is made up of five factors:\n*   **Payment history (35% of your score)**: Your payment history is the most important factor in your credit score. Lenders want to know their borrowers will be reliable in paying back their debts, and a long history of on-time payments lets them know that.\n*   **Credit utilization (30% of your score)**: This measures the balances on your revolving debt accounts (credit cards or lines of credit) compared with your borrowing limits. Creditors like to see this number at 30% or lower, but the lower, the better for your scores.\n*   **Length of credit history (15% of your score)**: The length of time you've been managing credit accounts also plays a role in your scores. This factor includes the age of your newest and oldest accounts and the average age for all of them. A lengthy credit history is good for your credit health.\n*   **Credit mix (10% of your score)**: Creditors like to see a mix of revolving (credit cards) and installment accounts (car loans, student loans, mortgages). A blended portfolio of credit accounts may help boost your score.\n*   **New credit (10% of your score)**: This includes the number of recently opened accounts and hard inquiries generated each time you apply for credit. Many recent hard inquiries and new accounts can affect your credit approval.\nOnce you understand what affects credit, the next step is to build good credit habits to improve and maintain your score. Make it a habit to pay your bills on time, keep your credit utilization low and only apply for new credit as needed. You should also monitor your credit often to keep tabs on your credit health. Doing so allows you to fix any issues right away that may come up.\nIt's equally important to avoid credit mistakes to preserve your score and overall credit health. If possible, refrain from making late payments and try to pay more than the minimum on your credit cards each month. Also, avoid installment loans with extended terms as they generally mean you'll pay more in interest over the life of the loan.\nHere are additional tips to help lift your credit profile:\n*   **Become an authorized user.** You could ask a relative or friend with good credit to add you as an authorized user to one of their accounts. The positive payment history will be added to your credit report and could help strengthen your score. You are not responsible for charges made on the card and can request to be removed as an authorized user at any time.\n*   **Ask your landlord and service providers to report to the credit bureaus.** These accounts usually won't appear on your credit report unless they go to collections. However, if you pay your rent and utilities on time, your score could improve if the landlord and service providers report payment activity to the credit bureaus.\n*   **Request a higher credit limit.** The credit card issuer may agree to increase your credit limit if your account is in good standing or your balance is low. A higher credit limit will raise your overall available credit and reduce your utilization, which can help improve your score.\n*   **Look for a cosigner.** Having a trusted friend of family member add their name to your account could help you qualify for credit you otherwise wouldn't. A cosigner can also help lower your interest rate and improve your terms. Few credit card issuers allow cosigners on accounts, but this can be a simple way to qualify for a loan that's out of reach for you on your own. An account with a cosigner helps you build credit like one without, but your account management will also reflect on your cosigners credit as well. Tread carefully if you're not sure you can afford to pay back an account with a cosigner, as you risk compromising the relationship in addition to your credit. END
 TITLE: How Budgeting Can Help You Improve Your Credit Score CONTENT: Creating a budget and sticking to it can have an indirect positive impact on your credit in several ways. Budgeting can help you:\n*   **Stay current on your bill payments.** Following a budget can help make sure you don't run out of money by the time bill payments are due. Late and missed payments can result in penalties and fees that will only add to your financial strain. Not only that, your creditors can also report delinquent accounts to the credit bureaus (Experian, TransUnion and Equifax) once they are 30 days past due or later. Payment history is the most important factor in your credit scores. A late payment, and the resulting negative mark on your credit report, can do significant damage to your credit scores.\n*   **Reduce your reliance on credit.** If you find yourself resorting to credit cards to hold you over until you get paid again, you might end up carrying a high balance on your cards. Overcharging can increase your credit utilization, which is the second most important factor in your credit scores. The closer your card balances get to their max, the more your score is impacted. Keeping your balance under 30% of your credit limit on each card helps prevent credit harm, but the lower, the better. Maintaining a budget can help you make sure there's enough money set aside to cover your bills, and prevent you from swiping a credit card in the first place.\n*   **Pay down your debt.** If you've already built up large debts from credit cards and other debt, budgeting can help you bring them down to size. Owing a lot of debt can not only impact your credit utilization, but can make it harder to make at least the minimum payment toward what you owe. Do you want to get out of debt? Include debt payments in your budget so you can easily track your progress and stay the course until you meet your goal. To pay down your debts quickly, explore the snowball method or avalanche method for repaying debts.\nWondering how much of an impact budgeting will have on your credit? It depends on your credit history and financial situation. If you're already managing your debts responsibly, creating a budget might not make much difference in the short term. However, budgeting can help make sure you continue to properly manage your finances, and make it more likely you can maintain a good credit score or improve it.  \nAdditional Benefits of Having a Budget\n--------------------------------------\nBeyond helping boost your credit score, there are other perks to having a budget. Here are a few additional benefits:\n*   **It can help you reach financial goals faster.** A budget is so much more than a plan to ensure you pay bills on time and avoid overspending. It's also a tool you can use to help reach financial goals faster, like saving for retirement or for a down payment on a home or car.\n*   **It can help you create an emergency fund.** Many Americans don't have enough set aside to cover an unplanned expense of $400 or more. Emergency expenses can easily lead to more debt, and less financial stability. Budgeting makes it easier to build an emergency fund that can help protect you when the unexpected happens. You can budget the amount you want to save each month until your stash is fully funded with at least three to six months' worth of living expenses.\n*   **It can help you plan for retirement.** You may find building your nest egg to be quite the challenge without a budget, particularly if you're only making contributions if you have enough to do so after your other expenses. However, you can use a budget to determine how much you can realistically save for retirement each month and stick to the plan to hold yourself accountable.\n*   **It can help you stop living paycheck to paycheck.** If you always seem to run out of money before the next payday, a budget can help you get a handle on your expenses to avoid overspending.\nHow to Create a Budget\n----------------------\nAre you new to budgeting or have you tried creating a plan that didn't quite work? There are many ways to pull a budget together, including by using Experian's Personal Finances tool. Here's how to get started:  \n### Step 1: List Your Income\nStart with income that you regularly receive each month. Compute the amount you receive by adding up the net pay found on your check stubs.\nNext, jot down any income you receive that's irregular or changes each month. If your earnings fluctuate because you're an hourly employee or self-employed, average your earnings from the past three to six months. You can also use the minimum amount you expect to earn from this income source for your budget.\n### Step 2: Compute Your Expenses\nDo you know how much you're spending each month? Review your credit card and bank statements for the past three to six months. As you look through the transaction activity, note the expense type and amount, and create a category for it in your notebook or spreadsheet.\nFor example, you may have categories for housing, food, utilities, insurance, debt payments, groceries, child care and pet supplies, just to name a few. Feel free to make these categories more detailed to give yourself a better idea of where your money goes each month. You may divide food spending into groceries and dining out, for example.\nInclude due dates for expenses related to recurring bills to help you budget more effectively. For expenses that may vary from month to month, like groceries, gasoline and even utility bills, err on the side of caution by using the highest possible cost when projecting expenses. To illustrate, if your grocery bill is between $300 and $400 each month, use $400 as the projected amount you will spend. If you don't end up spending that much, you can put that leftover money toward other things.\n### Step 3: Set Realistic Goals\nIn order for your budget to help you avoid overspending and going into debt, it's vital that you set realistic goals for yourself. This helps you stay motivated and will make it more likely you'll resist the temptation to overspend or get off track. Financial goals serve as a reminder of why you're following a budget in the first place and what's possible if you stay the course. Unrealistic spending goals are much easier to go unmet, which can be demoralizing and financially destabilizing. Plan out the goals you set so you're more likely to be able to reach them. If you blow through the budget you've set, review what happened and adjust for the next month.\nWhen you write down your goals, attach figures and decide how much it will cost to make them a reality. To illustrate, if you want to save up $2,400 in the next six months to put toward a new car, you need to add a line item for $400 in your budget.\nBeing realistic also means letting yourself have some fun. A carefully budgeted life doesn't have to be one without the occasional splurge—in fact, planning for some impromptu spending can reduce the anxiety that might accompany it.\n### Step 4: Monitor Your Spending\nAfter your first month with a budget, take a look at how your spending ultimately lined up with the financial goals you set for yourself. If it doesn't, you may need to make adjustments to your budget goals, your spending, or both. You can manually monitor your spending by reviewing your bank and credit card statements. But if you pay bills and make purchases from several accounts, this can be challenging.\nYou can make your life a lot easier by using budgeting software to automate the monitoring process and categorize your expenses. Ultimately, you want to keep close tabs on your spending to ensure your budget is realistic and won't be too challenging to follow going forward.\n### Step 5: Stick to the Plan\nDeciding on a plan is essential, but actually sticking to it is what matters most. Not all budgeting plans are the same, though. It depends on your money habits, financial goals and personal preferences. Refer to this detailed guide to explore budgeting plans that may work for you.\nWhen you struggle to stay motivated, refer back to the financial goals you set as they are the reason why you are budgeting in the first place. Remember that things like improving your credit score and building a retirement fund tend to take time, so don't lose hope if you don't see results immediately. Stay focused; you'll thank yourself later.\nThe Bottom Line\n---------------\nBy creating a budget and sticking to it, you can achieve your financial goals and possibly see improvements to your credit. Budgeting can also help you build an emergency fund, plan for retirement and stop living from check to check. Consider signing up for free credit monitoring through Experian, so you can better stay on top of your credit score and overall credit health as you begin to budget and improve your financial well-being. END
 TITLE: How Budgeting Can Help You Improve Your Credit Score CONTENT: Additional Benefits of Having a Budget\n--------------------------------------\nBeyond helping boost your credit score, there are other perks to having a budget. Here are a few additional benefits:\n*   **It can help you reach financial goals faster.** A budget is so much more than a plan to ensure you pay bills on time and avoid overspending. It's also a tool you can use to help reach financial goals faster, like saving for retirement or for a down payment on a home or car.\n*   **It can help you create an emergency fund.** Many Americans don't have enough set aside to cover an unplanned expense of $400 or more. Emergency expenses can easily lead to more debt, and less financial stability. Budgeting makes it easier to build an emergency fund that can help protect you when the unexpected happens. You can budget the amount you want to save each month until your stash is fully funded with at least three to six months' worth of living expenses.\n*   **It can help you plan for retirement.** You may find building your nest egg to be quite the challenge without a budget, particularly if you're only making contributions if you have enough to do so after your other expenses. However, you can use a budget to determine how much you can realistically save for retirement each month and stick to the plan to hold yourself accountable.\n*   **It can help you stop living paycheck to paycheck.** If you always seem to run out of money before the next payday, a budget can help you get a handle on your expenses to avoid overspending. END
 TITLE: How Budgeting Can Help You Improve Your Credit Score CONTENT: How to Create a Budget\n----------------------\nAre you new to budgeting or have you tried creating a plan that didn't quite work? There are many ways to pull a budget together, including by using Experian's Personal Finances tool. Here's how to get started: END
 TITLE: What Credit Counseling Offers CONTENT: How Does Credit Counseling Work\n-------------------------------\nIf you're having difficulty meeting your expenses and are drowning in debt, a credit counseling agency is the place to go. Certified credit counselors are trained in consumer law, budgeting and how to handle all kinds of credit issues. They won't judge you for the decisions you've made in the past, but will help you move forward so you're in a better position in the future. END
 TITLE: What Credit Counseling Offers CONTENT: Does Credit Counseling Hurt Credit?\n-----------------------------------\nCredit counseling itself has no impact on your credit report since it is merely an informational appointment. If you enroll in the DMP, however, your credit scores may be affected.\nSome credit card companies notify the credit reporting bureaus that you are paying through a third-party service. The notice is not calculated into your credit scores.\nOnce you start making payments via the agency, your credit score can improve because you will establish a steady payment pattern. That will likely help your credit scores rise if you've been delinquent in the recent past. In fact, if you were several months behind when you started, the credit card company may re-age the account, which will show that you're now in good standing. Reducing your credit utilization ratio by paying off your credit cards can also have a positive effect on your scores.\nPotential problems, however, may lie ahead. If you have to close accounts as part of your DMP, doing so eventually will affect the length of your credit history, which is a credit scoring factor. Then again, if your accounts were closed because you were seriously delinquent, chances are your scores are already low, so this isn't likely to be a major concern.\nIf you haven't paid late, it will be particularly important to ensure that no payments are missed between the time you begin the DMP and when the agency starts sending the payments. END
 TITLE: What Credit Counseling Offers CONTENT: Should I Use a Credit Counseling Service?\n-----------------------------------------\nThere are plenty of excellent reasons to see a credit counselor. Aside from building a game plan to tackle credit card debt, a credit counseling agency can help you:\n*   Develop or refine a budget and save money.\n*   Communicate with lenders and collection agencies.\n*   Learn about student loan repayment plans.\n*   Avoid or deal with debt related lawsuits and repossessions.\n*   Determine if bankruptcy is the right decision.\n*   Protect or rebuild your credit.\nSince there is no charge for the appointments, you've got nothing to lose by spending an hour with a counselor. You'll be under no obligation to follow their action plan, as it will be simply a series of suggestions. END
 TITLE: What Credit Counseling Offers CONTENT: Help Is Out There\n-----------------\nWhen you're experiencing financial troubles, do not hesitate to pursue high-quality services and support. A good counselor can help you identify the best strategy for your unique situation. If you don't know who you owe or what your balances are, obtain a free copy of your Experian credit report through our website or through AnnualCreditReport.com. After reading it, you may decide that credit counseling is what you need to do to get ahead. END
 TITLE: How to Improve Your Credit Score During a Recession CONTENT: How Can a Recession Affect Credit?\n----------------------------------\nThere are many ways a recession can directly or indirectly affect your credit. Losing your job or taking a pay cut might make it difficult to keep up with your bills. If you miss debt payments or pay more than 30 days late, your credit score will suffer.\nIf your income is reduced, you might start relying on credit cards to pay your basic expenses. As your credit card debt inches up, your credit utilization ratio will rise too. This ratio measures the amount of revolving credit you're currently using compared with the amount of revolving credit available to you. If you begin using more than 30% of your available credit, your credit scores could suffer.\nApplying for too many credit cards, loans or other types of credit during a recession could also negatively affect your credit score. For each application you fill out, the lender will perform a hard inquiry on your credit report. Too many hard inquiries in a short time can suggest to lenders that you're having trouble making ends meet.\nRecessions can also make it harder to get new credit. During an economic downturn, lenders often set stricter standards for extending credit, which can make it more difficult to get approved for loans or credit cards. Maintaining or even improving your credit score during an economic downturn can help ensure you can access credit when you really need it.\nOn the positive side, some lenders may be more willing to work with borrowers who are struggling to make payments during hard times. They may offer options such as reducing or deferring payments, which can help you stay current on payments and maintain your credit score. If you think you may have trouble making your payments, contact the creditor as soon as possible to see if they can help—and try not to wait until a due date has passed. Being proactive can help keep your account in good standing—and keep your credit score from falling. END
 TITLE: How to Improve Your Credit Score During a Recession CONTENT: Check Your Credit Score and Report\n----------------------------------\nOne of the first things you should do when a recession hits is check your credit score and get a copy of your credit report so you know where you stand and how much work you'll need to do to improve your credit score.\nYou should check your credit reports from each of the three major credit bureaus—Experian, TransUnion and Equifax—and review them for any inaccuracies. Creditors sometimes make errors when reporting to the credit bureaus. If a creditor mistakenly tells the credit bureau that you made late payments or that your account went to collections, it could hurt your credit score unless you correct the problem. If you see an error, you should file a dispute with that credit bureau to get the information corrected.\nCorrecting inaccurate negative information can potentially improve your credit score. Check your credit report on a regular basis to stay on top of any inaccuracies so you can report them to the credit bureau before they damage your credit score. You can also set up free credit monitoring to get alerted of any changes to your credit report and credit score, as well as get a free monthly credit report and score from Experian. END
 TITLE: How to Improve Your Credit Score During a Recession CONTENT: Catch Up on Past-Due Payments\n-----------------------------\nKeeping up with your payments is critical to maintaining good credit during a recession. Your payment history is the single most important factor in your credit score, accounting for 35% of your FICO® Score☉ (the most commonly used score). Even one missed payment can have a negative impact on your credit score.\nIf you're behind on any of your payments, make it a point to catch up as quickly as possible. Once your accounts are current, be sure to stay on top of your payments. If you have trouble remembering when payments are due or you have a lot of credit accounts to keep track of, consider setting up automatic payments for the minimum amount due. This will ensure you never miss a due date. END
 TITLE: How to Improve Your Credit Score During a Recession CONTENT: Consider Adjusting Your Spending Habits and Building a Budget\n-------------------------------------------------------------\nIf you don't have a budget, now is the time to create one. If you already have a budget, now is a good time to review it and make some adjustments to your spending habits. Tightening your belt and reducing unnecessary spending can help you remain financially stable despite a recession.\nTo create a budget, determine your income; your essential expenses, such as rent or mortgage, food and transportation; and how much you spend on nonessential items, such as eating out or buying new clothes. Tracking your expenses for a few months can help you get a clearer picture of your spending habits and where you can cut back.\nDuring a recession, you should aim to reduce both essential and nonessential spending as much as possible. Keep your spending within your income limits so you don't have to rely on credit cards. If you must use credit cards, charge only as much as you can pay off in full each month. Building up a big credit card balance could make it hard to keep up with your payments, especially if you lose your job or your income is reduced, and will hurt your credit score. END
 TITLE: How to Improve Your Credit Score During a Recession CONTENT: Make Sure You Have an Emergency Fund\n------------------------------------\nA recession can make your job and income uncertain. You may get laid off, have your hours reduced or have to take a pay cut. If you're self-employed, you may lose customers or have clients go out of business. Building an emergency fund can help ensure you can cover any monthly payments if the recession does affect your income.\nIdeally, you should begin saving toward your emergency fund before any signs of a recession appear and continue saving throughout the downturn. But even if you don't have an emergency fund, it's never too late to start one.\nAs a general rule, experts suggest building an emergency fund that can cover three to six months of essential expenses. If your industry is particularly at risk or if you're self-employed, you may want to save even more. If that's not possible, don't give up—just start setting aside what you can afford each month.\nPutting your emergency fund in a dedicated account—ideally, one that earns interest—will help reduce the temptation to pull from it on a whim. (Just make sure you can quickly access the money if needed without incurring a penalty.) To make saving money easy, set up an automated transfer from your checking account to your savings account every paycheck. Also put any \"extra\" money that comes your way, such as bonuses, tax refunds or cash gifts, into your emergency fund.\nAre you having trouble squeezing extra money out of your current income? Perhaps you're already feeling a financial crunch from the recession. If your budget has no room to spare, see if you can get a side job or sell unwanted items, such as clothing, electronics or furniture, to generate some cash for your emergency fund. END
 TITLE: How to Improve Your Credit Score During a Recession CONTENT: Maintain a Good Credit Score Despite a Downturn\n-----------------------------------------------\nYes, a recession can hurt your credit score—but it's also possible to maintain or even improve your credit score during an economic downturn by taking a few simple steps. Developing a budget, reducing your expenses and building up an emergency savings fund will help ensure you have the funds you need to pay your bills so you can maintain a good credit score, no matter what challenges the economy brings.\nIf you need to improve your credit score, one quick way to do so is to sign up for Experian Boost™† , a free service that gives you credit for on-time utility and cellphone bill payments. (Normally, this information isn't part of your credit report.) Even in a recession, you'll still need to pay utility and cellphone bills, so why not use them to boost your credit score? END
 TITLE: How to Know Whether You Need a Credit Counselor CONTENT: What Does a Credit Counselor Do?\n--------------------------------\nCredit counseling agencies provide several services to help people get out of debt and improve their money management skills. Counselors are trained and certified to help you improve your overall financial literacy, and can show you how to create a budget, get a copy of your credit reports and interpret your credit scores. Some also provide counseling on housing or bankruptcy.\nIn addition to one-on-one services, credit counselors may also offer group workshops, where you can learn and get access to free resources.\nIf you need more hands-on assistance, credit counselors can also work with you to create a debt management plan.\nUnlike debt settlement, which uses risky strategies to try to settle for less than you owe, a debt management plan focuses on reducing your monthly payments. Credit counselors do this by negotiating lower interest rates, reduced or waived fees, longer repayment terms and more with your creditors.\nInstead of continuing to pay your creditors individually, you make one lump-sum payment to the credit counseling agency, which divvies it up and makes payments on your behalf. Debt management plans typically last three to five years. END
 TITLE: How to Know Whether You Need a Credit Counselor CONTENT: Is Credit Counseling Right for Me?\n----------------------------------\nIf you're thinking about working with a credit counselor, it's important to understand both the benefits and drawbacks and how they relate to your situation.\n### Pros of Credit Counseling\nWhether you're thinking of using a debt management plan or you just want advice on how to better manage your money, here's how credit counseling can help you:\n*   **The advice is free.** While debt management plans do require upfront and monthly fees, you can attend workshops or get one-on-one financial advice for free. So if you just want to improve your money management, it may be worth having a credit counselor take a look at your situation.\n*   **It could reduce your debt-related costs.** A credit counselor may be able to negotiate lower interest rates, reduced or waived fees, and even a longer repayment term to help make your monthly payments more affordable and save you money in the long run.\n*   **It can simplify your debt payoff plan.** With a debt management plan, you pay just one monthly payment to the credit counseling agency instead of continuing to pay each creditor individually. Also, if you're incorporating collection accounts into your plan, it will end the stressful collection letters and calls when the credit counselor takes over.\n### Cons of Credit Counseling\nWhile working with a credit counselor has some clear benefits, it may not be the best approach for every situation, especially in regard to debt management plans.\n*   **It can affect your credit score.** Getting on a debt management plan doesn't affect your credit score directly. But credit counselors typically require you to close your credit card accounts at the beginning of the plan. Doing so eliminates available credit and can increase your overall credit utilization ratio, which measures how much of your available credit you're using. A high ratio can adversely affect your credit score.\n*   **Debt management plans aren't free.** The typical initial setup fee can be as high as $50 with monthly fees of around $25, according to the National Foundation for Credit Counseling (NFCC). While that may feel like a small price to pay for debt relief, it's still something to consider with your budget because debt management plans typically last three to five years. That said, credit counselors may be willing to waive their fees if you're experiencing severe financial hardship.\n*   **Not all debts are includable.** Debt management plans are designed to help you pay off unsecured debt like credit cards, personal loans, medical debt and collection accounts. If you're struggling with your auto loan, mortgage or home equity loan, a credit counselor can give you advice but can't work with your creditors. Also, student loans are typically excluded.\n### Who Can Benefit From Credit Counseling?\nCredit counseling is best suited for someone who either needs some free financial advice or is struggling to manage unsecured debt.\nKeep in mind, though, that there are some limitations to what a credit counseling agency can help you do. If you're struggling with secured debt, you want to settle for less than what you owe or your financial situation is dire, you may want to cautiously consider other options, such as debt settlement or even bankruptcy.\nIf you're not sure which path to take, a credit counselor can help you find the right fit based on your situation. END
 TITLE: How to Know Whether You Need a Credit Counselor CONTENT: How to Find a Good Credit Counselor\n-----------------------------------\nThere are several organizations that offer credit counseling, but not all of them are created equal, so it's important to know how to find a good one. The best credit counseling agencies are nonprofit organizations accredited or certified by the NFCC or Financial Counseling Association of America (FCAA).\nYou can find a list of reputable organizations in your area through the U.S. Department of Justice website or your state's attorney general.\nTake your time and pick a few credit counselors to compare. Ask each one about their certifications and set up a preliminary meeting in person or over the phone. This initial meeting should be free, allowing you to share your situation and pick the right counselor for you based on how they respond.\nAs you go through this process, here are some potential red flags that you should avoid:\n*   An organization pushes a debt management plan without spending time analyzing your situation.\n*   A credit counselor charges for general financial advice.\n*   The agency isn't a nonprofit organization or certified by the NFCC or FCAA.\n*   The agency has a minimum debt requirement. END
 TITLE: How to Know Whether You Need a Credit Counselor CONTENT: Keep an Eye on Your Credit Score While Working With a Credit Counselor\n----------------------------------------------------------------------\nCredit counseling services are supposed to help you improve your credit and overall financial situation. So if you end up working with a credit counselor, regularly check your credit score to keep track of your progress.\nWatch out for any unexplained drops during the process. If you're on a debt management plan, closing credit card accounts can cause your credit utilization rate to spike, which can hurt your credit score. But if you notice any other sudden decreases, check your credit report to make sure your payments are being made on time and there's no fraudulent activity.\nAs you work with a reputable credit counselor and keep an eye on your credit score and reports, you'll be well on your way to a better financial life. END
 TITLE: No Credit Card? Here Are Other Ways to Build Your Credit CONTENT: Before you make strides to improve your credit, first take a moment to check your credit report, which you can do for free through Experian. This will let you know where you stand, which not only makes it easy to track your progress, but will help inform what options will (or won't) be available to you. Ready to get started? Let's go.\n### 1\\. Pay Your Bills on Time\nDo you have a student loan or an auto loan? Or maybe some medical debt or a personal loan? Now is the time to be zealous about paying every bill you have by the due date. Each payment on an installment loan is reported on your credit report. While on-time payments can give your score a nudge in the right direction, late or missed payments can cause it to nosedive. If you tend to make late payments due to forgetfulness, set up reminders on your calendar or schedule automatic payments with your lender or creditor.\n### 2\\. Become an Authorized User\nIf you don't have a credit card because you can't qualify for one yet, consider becoming an authorized user on the account of a loved one. You get a card and can make charges on the account, but the owner is ultimately responsible for the account and repayment. The card's activity will likely be reported on your credit profile in addition to theirs, so if the account is used responsibly by both of you, it can help build your credit.\nBefore you do this, it's important to remember the risks. If you use the card irresponsibly, you could tank that person's credit, as well as your own, and jeopardize a relationship. If they make mistakes like missing payments, it can hurt your credit.\nSo only go with this option if you trust the person and are sure you can use the account wisely. If there's not anyone you could do this with, consider getting a secured credit card, which is meant for those who need help building credit and requires a deposit to get started.\n### 3\\. Get a Credit-Builder Loan\nIf your credit report is \"thin\" (meaning you have few credit accounts) or credit score is bad, it might be impossible to qualify for a traditional installment loan. But some banks and credit unions offer credit-builder loans, which are unique financial accounts intended to help you establish positive credit history.\nThese aren't traditional loans. Instead, a bank or credit union puts a set amount of money into a special savings account—usually $300 to $1,000, according to the Consumer Financial Protection Bureau. You will pay this amount back, in usually six to 24 months, and you can't access the funds until the amount is paid off. These payments are reported to the credit bureaus, which helps you establish credit, and once the loan is fully paid, you get all of the money back. Just be sure to make your payments on time to get the maximum benefit to your credit.\n### 4\\. Try Experian Boost™†\nWhile utility companies often check your credit when you first create an account, your monthly payments don't typically go on your credit report. This can be frustrating if you're diligent about paying your phone or electricity bill every month. But not anymore: Experian Boost offers a new way to make those payments count toward building your credit.\nWhen you sign up for Experian Boost, your phone and utility payments will be factored into your credit report. If you have a track record of on-time payments for these bills, you might receive an instant boost to your existing credit score. END
 TITLE: No Credit Card? Here Are Other Ways to Build Your Credit CONTENT: How to Build Credit Responsibly\n-------------------------------\nAs you begin your quest to build credit and eventually qualify for a credit card, make sure you're following these best practices to keep your credit on the right track.\n*   **Continue paying every bill on time**. Whether it's a medical bill, credit card payment or student loan, ensure every payment is on time. Late or missed payments will hurt your credit, so do what you can to make sure you submit payments by their due dates.\n*   **Don't overdo it with new accounts**. Once your credit improves, you may be eager to apply for credit cards with perks. But don't go too crazy; every application puts a hard inquiry on your credit report, and too many of these can have a negative effect. Don't apply for new accounts just because you can.\n*   **Keep your credit utilization ratio low**. It's important you don't use all of the credit available to you. If you have credit cards, this means not using more than 30% of your credit limit at any given time—credit experts say a utilization rate that's any higher will hurt your credit score. In other words, keep your balances as low as possible, and don't max out a credit card; it makes you look overleveraged to lenders and can hurt your credit score.\n*   **Hold on to accounts in good standing**. As you build credit, keep in mind that longevity of accounts is a factor in your credit score. The longer an account is on your credit report, the more it helps you. If you have an unused credit card, consider keeping it open since it helps keep your credit utilization ratio lower and helps show longevity. It's worth noting, however, that an account closed in good standing will stay on your credit for 10 years. So if an account isn't worth the fees associated with it, feel free to close it without worrying too much about how it may affect your credit. END
 TITLE: No Credit Card? Here Are Other Ways to Build Your Credit CONTENT: Keep Track of Your Credit\n-------------------------\nTo make sure your hard work is paying off, periodically check your credit score and monitor your improvement. As your credit report builds and your score begins to rise, it will become easier to get approved for credit cards, loans and other financial products. It will also help you in situations where your credit may be checked, such as when you're signing up for new utilities, applying for a job or applying to rent a home or apartment. END
 TITLE: How Long Does It Take to Rebuild Credit? CONTENT: What Factors Influence Your Credit Score?\n-----------------------------------------\nCredit scoring factors are generally broken up into five categories, with several attributes per category.\n*   **Payment history**: Making on-time payments can help your credit, while missing payments can hurt it. The later your payments get, the more they can impact your credit. Other payment-related negative marks go into this category as well, such as whether you have a charged-off account or have filed for bankruptcy.\n*   **Current debts**: Your current debt amount relative to your initial loan amount can impact your credit. However, what's most important in this category is the amount of revolving credit you're using—your credit utilization ratio. Using a relatively small percentage (under 30%, but lower is better) of your credit cards' limits is better than carrying high balances that approach your credit limits. If you can, also pay your bill in full each month to avoid paying interest.\n*   **The length of your credit history**: A long history of managing credit accounts can help your credit scores. The ages of your oldest and newest accounts, and the average age of all your accounts, are all scoring factors.\n*   **Experience with different types of accounts**: Having revolving credit (such as credit card) and installment credit (such as auto, student or mortgage) accounts in your credit report could be better than only having one type of account.\n*   **Recent credit applications**: Applying for new credit accounts can have an effect on your credit.\nPayment history and current debts—primarily your revolving utilization rate—are generally the biggest factors affecting credit scores. However, being knowledgeable about and mindful of all the factors can be important when you're rebuilding your credit. END
 TITLE: How Long Does It Take to Rebuild Credit? CONTENT: Rebuilding Your Credit Takes Time\n---------------------------------\nIf your credit scores aren't where you want them to be, there are a few steps you can take to better understand what's impacting your score and rebuild your credit:\n1.  Check your credit. Review your credit reports, and dispute information you believe to be inaccurate or the result of fraud. You can check your Experian credit report for free online and also get a free FICO® Score☉ with a breakdown of what's hurting your score and how to improve it.\n2.  Pay bills on time. Making bill payments on time is one of the most important things you can do to help your credit. Prioritize bills that get reported to the credit bureaus, such as loans and credit cards. You can also try using Experian Boost™† , which allows you to connect your bank account and get credit for making on-time payments that otherwise might not help your credit, such as phone, utility and streaming service payments.\n3.  Pay down credit card debt. If high utilization is hurting your credit, one of the quickest ways to rebuild your credit is to pay down credit card debt. Even if you can't afford to pay off your cards, using a personal loan to consolidate credit cards can lower your utilization rate as you're moving revolving debt to an installment account. However, it may only be a good idea if you can also save money by lowering your interest rate.\n4.  Use a credit-building account. Rebuilding your credit can be difficult if you aren't adding positive information to your credit history. Although you generally don't want to take out a loan solely to build credit, a secured credit card or credit-builder loan could be a good idea if you don't have any accounts that are being reported to the credit bureaus.\nSlow and steady wins the race when it comes to rebuilding credit. Focus on what you can control—paying down debt and adding positive information to your credit. Over time, you may see your scores start to improve. END
 TITLE: How Long Does It Take to Rebuild Credit? CONTENT: How Long Does Negative Information Stay on Your Credit Report?\n--------------------------------------------------------------\nPart of the reason it may not be easy to fix your credit quickly is that most accurately reported negative marks can stay on your credit report for seven to 10 years. Because credit scoring models such as FICO® and VantageScore® use your report to calculate your credit score, these long-term negative marks can have a lengthy effect on your scores.\n*   **Late and missed payments**: 7 years\n*   **Collection accounts**: 7 years\n*   **Chapter 13 bankruptcy**: 7 years\n*   **Chapter 7 bankruptcy**: 10 years\n*   **Credit inquiries**: 2 years\nAlthough their impact diminishes over time, negative marks may affect your scores the entire time they're part of your credit history. Hard credit inquiries are an exception, as FICO® only considers hard inquiries for the first 12 months even though credit bureaus leave them on your credit reports for about two years. END
 TITLE: How Long Does It Take to Rebuild Credit? CONTENT: How to Get Extra Help With Your Credit and Debt\n-----------------------------------------------\nRebuilding your credit is going to be impossible if you have trouble affording your bills and find yourself missing debt payments regularly. Figuring out ways to cut expenses and save money can help. However, when you're deep in debt and interest keeps piling on, you may need a helping hand.\nNonprofit credit counseling agencies offer free and low-cost services like budget planning, and assistance with specific types of debt, such as student loans and mortgages. Many also offer debt management plans (DMPs), which could be a good option if you're having trouble with unsecured debts, including credit cards.\nIf a DMP makes sense, your counselor can negotiate with your creditors to try and get you lower monthly payments, decreased interest rates and waived fees. They may even be able to bring past-due accounts current so you can make on-time payments without having to pay off your entire outstanding balance. Once you're on a DMP, you'll make one monthly payment to the credit counseling agency, which will divvy up the money and pay your creditors. END
 TITLE: How Long Does It Take to Rebuild Credit? CONTENT: Monitor Your Progress as You Work to Rebuild\n--------------------------------------------\nAs you work to rebuild your credit, you can watch your progress with free credit monitoring from Experian. You'll be able to see your score change over time, receive updated advice based on your latest report and get real-time alerts about suspicious changes in your report. END
 TITLE: Why You Should Build Good Credit Even if You Aren’t Planning a Major Purchase CONTENT: Your Credit Score Can Affect You in Surprising Ways\n---------------------------------------------------\nYour credit score influences more than just your chances of qualifying (and the terms you'll be offered) for a loan. Here are some other ways it can affect your everyday life:\n*   **Finding an apartment**: Landlords can't check your credit score, but they can check your credit report (with your written permission). If you've missed a payment or had an account go to collections, it may be tough to get an apartment. A \"thin\" credit file also won't help you as it gives a landlord little to go on.\n*   **Getting a job**: Like landlords, employers can't see your credit score, but they can check your credit report. Not every job does it, but some employers will use your credit report to judge your responsibility and trustworthiness—especially if the job involves handling finances or sensitive data. If you have bad credit or no credit, it could ruin your chances of getting hired for certain jobs.\n*   **Saving on car or homeowners insurance**: In most states, auto and homeowners insurers can use a credit score-based insurance score to help determine your rates. If your credit is in great shape, it could save you money.\n*   **Getting started with utilities**: While your utility bill isn't typically a debt payment, utility companies often run a credit check to see how likely you are to pay on time. If your credit is less than stellar, you might be required to pay a deposit, which you may not get back until you move again.\nBy building a positive credit history and score, you may have a better chance of getting the job or apartment you want and saving money on insurance and utilities. END
 TITLE: Why You Should Build Good Credit Even if You Aren’t Planning a Major Purchase CONTENT: Debt Can Sneak Up on You\n------------------------\nYou should have enough savings set aside to keep your head above water in case you're hit with unexpected expenses. But if you don't have that savings yet, it pays to have good credit when life hits a snag.\nFor example, if you need money for car repairs, good credit could mean qualifying for a low interest personal loan instead of resorting to a loan that has unfavorable terms.\nIf your car unexpectedly breaks down or gets totaled, you could wind up financing a new one on short notice. Having great credit can save you thousands of dollars in interest charges on an auto loan.\nIn other words, you may not plan to finance anything, but life doesn't always go to plan. Having good credit puts you in a good position and give you options when something goes wrong. END
 TITLE: Why You Should Build Good Credit Even if You Aren’t Planning a Major Purchase CONTENT: How to Establish a Solid Credit History\n---------------------------------------\nIf you haven't started building credit or you have negative items on your credit report, now is the time to start working on it—even if you're not planning a big purchase with a loan anytime soon.\nHere are some ways you can do it:\n*   **Become an authorized user on a credit card**: If you have a parent or close relative with good credit, ask them to add you as an authorized user on their account (typically a credit card). The account's history will be added to your credit report.\n*   **Use a secured card or credit-builder loan**: Getting a secured credit card or credit-builder loan can help improve your credit score as long as you always pay on time. Paying off your balance every month will spare you from potentially costly interest.\n*   **Keep credit card balances low**: Your credit utilization ratio plays a major role in determining your credit scores, so you'll want to keep your credit card balance low relative to your credit limit. Experts say a credit utilization ratio above 30% will hurt your credit scores. You should aim to get your ratio as low as possible.\n*   **Avoid unnecessary debt**: Only apply for credit when you need it. To keep your payments manageable, avoid taking on debt that you don't need.\n*   Add your rent and utilities to your credit report. Programs like Experian Boost™† and some rent reporting companies allow you to add your rent, utility or telecom payments to your credit report so they can count towards your credit score.\nAs you follow these and other credit-building tips, you'll have a much better chance of saving money and being prepared in case of an emergency or a large planned expense. Ultimately, it's important to build credit now so you have it if you need it. END
 TITLE: Will Being an Authorized User Help My Credit? CONTENT: What Is an Authorized User?\n---------------------------\nAn authorized user is a secondary account holder on a credit card. These users can make purchases, but aren't ultimately responsible for payment, unlike a joint account holder or a cosigner would be.\nAn authorized user may receive his or her own credit card and account number, but the primary cardholder can view all purchases and make payments. You may decide to reimburse the main cardholder for any balance you put on the card, or not to use the card at all. You'll still be able to take advantage of the account's age and positive payment history. END
 TITLE: Will Being an Authorized User Help My Credit? CONTENT: If you have little or no credit history, becoming an authorized user gives you a jump-start. When someone you trust adds you as an authorized user to their credit card, a new account will appear on your credit report.\nAdditionally, all the characteristics of the original account will have an impact on your credit scores. You'll most benefit from joining an account that has been open a long time, has spotless payment history and has a low credit utilization rate, meaning a small percentage of the total available credit is being used.\nBut for those factors to benefit you, the credit card issuer must report authorized-user activity to the credit bureaus, and your credit score must incorporate that activity in its calculations. Everyone has multiple credit scores, and some scores may not consider authorized-user activity as representative of your trustworthiness as activity on an individual or joint account.\nFor that reason, if you're looking to rebound from damaged credit or to see a big boost fast, you may want to open an account of your own, such as a credit-builder loan or secured credit card. More on those options later. END
 TITLE: Will Being an Authorized User Help My Credit? CONTENT: What Are the Risks of Being an Authorized User?\n-----------------------------------------------\nJust as joining a responsible credit user's account can help you, linking yourself with a less reliable cardholder can hurt you. If the cardholder misses a payment or maxes out their card, your credit could be negatively affected. Some credit reporting agencies, including Experian, do not include negative payment history in an authorized user's credit report. But others may.\nBefore becoming an authorized user, ask the primary account holder about past late payments, how long they've had the account, and how often they use more than 30% of their credit limit. Experts say those with good credit scores use less than that on a regular basis (and those with the best scores stay around 10% or less). To be extra sure you're making the right call, consider asking if the account holder will let you see their credit report. END
 TITLE: Will Being an Authorized User Help My Credit? CONTENT: How to Remove an Authorized User\n--------------------------------\nThe primary account holder can remove an authorized user at any time by calling the credit card company's customer service number. Depending on the issuer, he or she may also be able to make the change online. Authorized users may also be able to remove themselves, depending on the credit card company.\nIf you've been removed from an account as an authorized user but the card activity still appears on your credit report, you can ask the credit bureaus to dispute it with the card company. You can generally start a dispute online and get updates on the process via email. END
 TITLE: Will Being an Authorized User Help My Credit? CONTENT: Other Ways to Build Credit\n--------------------------\nIf you don't have access to someone who's willing to add you as an authorized user, there are other options for building credit. Or, if you'd like to see faster progress, consider opening one of these types of accounts in addition to seeking authorized-user status:\n*   **Secured credit card**: This type of credit card is best for those who are new to credit or want to repair it. You'll make a deposit, generally of $200 to $2,000, which becomes your credit limit. As you use the card responsibly—meaning you keep the balance low at all times and pay it off each month—the issuer might turn it into a traditional unsecured card. You can then get your deposit refunded to you.\n*   **Credit-builder loan**: A credit-builder loan functions similarly to a secured credit card, without the deposit. You'll apply for a loan—typically from a credit union or community bank—and make monthly payments toward it over a period of six to 24 months. Once your term ends, and you've made all your payments on time, you'll have access to the balance in the form of a savings account. That way, you're saving and building credit simultaneously. END
 TITLE: Will Being an Authorized User Help My Credit? CONTENT: The Bottom Line\n---------------\nUnder the right circumstances, becoming an authorized user can give you access to the world of credit without requiring you to open your own account. Make sure your credit card issuer gives your behavior the recognition it deserves, and pick a worthy primary cardholder. But for an extra boost, pair—or replace—being an authorized user with credit-building strategies that could be even more effective. END
 TITLE: Can Automatic Bill Payments Help My Credit Score? CONTENT: How Automatic Bill Pay Can Help Your Credit\n-------------------------------------------\nBecause payment history is the most important part of your credit scores—accounting for 35% of your FICO® Score☉ —making sure you don't miss any payments is key to maintaining a good score. Once you miss a payment, a record of that delinquency may be sent to one or more of the three major credit bureaus (Experian, TransUnion and Equifax), and the record will remain in your credit file for seven years.\nSetting up automatic bill payments is easy and can help you avoid missing any payments. Autopay works like this: You give your creditor your bank account information, and when your payment is due, they'll withdraw the proper amount directly from your account. Depending on the type of bill, you may also be able to use a credit card to pay. Alternatively, automatic bill payments can be set up through your bank account. For recurring bills of the same amount, you can schedule payments to be sent by most banks automatically.\nWhile potentially bad for your credit, missing a bill payment might also cause you to incur expensive late fees. Credit card issuers often charge cardholders a late fee for missed or late payments. And be careful—you could be charged these late fees for each month you don't pay. If you catch this in time, you may be able to negotiate to have the fee waived when you pay, but being proactive and having your bills automatically paid is a better solution if you tend to miss payments. END
 TITLE: Can Automatic Bill Payments Help My Credit Score? CONTENT: What About Paying Utility Bills?\n--------------------------------\nHistorically, utility bills didn't have a direct effect on your credit scores—unless your account was charged off or sent to a collection agency. Until recently, even if you made all your payments on time, the positive history did nothing for your credit scores.\nA new program called Experian Boost™† ™, however, has changed that. Experian Boost allows you to get credit for past on-time payments toward utility and telecom bills, allowing you to boost your FICO® Score in just minutes. This game-changing technology is the first of its kind, and is the only way you can get a credit boost for your on-time utility payments.\nExperian Boost doesn't consider late payments, so the more on-time utility payments you have, the better the chance you'll be able to get a score increase. Putting your utility bills on autopay is a good option if you're thinking about enrolling in Experian Boost, and it will also help you make sure not to get behind on your bills. END
 TITLE: Can Automatic Bill Payments Help My Credit Score? CONTENT: What to Watch Out For\n---------------------\nPutting your bills on payment autopilot might sound great, but it's important that you still keep track of your bills to make sure there are no mistakes. With automatic bill payment, it can be easy to lose track of how much you're spending, which may lead to overdrafting your debit account—a whole other problem.\nAutomatic bill payment is best used as a security measure, but it's important to still know how much money is going in and out of your accounts. If you're juggling multiple bills, it may be good to enroll in electronic alerts that will help you stay on top of your payments. Also consider getting a free credit report to see where your credit is at as you work toward improving it with autopay.\nEach creditor and bank is different, so if you are interested in automating your payments, contact your lender or bank for more information. END
 TITLE: How to Improve Credit When Living Paycheck to Paycheck CONTENT: Step 1: Know Where Your Money Is Going Now\n------------------------------------------\nIt's very important to obtain a precise idea of where your income has been going so you can determine what you can reasonably cut down. Unless you've been carefully tracking, there's a good chance that you've been spending more than you think, and possibly on non-essential expenses.\nTo get an accurate picture, use the Federal Trade Commission's Make a Budget worksheet. Plug in your monthly income and then fill out the categories for what you might spend on both a regular and an occasional basis. At the end, it will tally the result. If the figure is in the negative, you'll immediately understand why the paychecks don't seem to be coming in fast enough. That's OK. Consider it as a signal you need to make some positive changes. END
 TITLE: How to Improve Credit When Living Paycheck to Paycheck CONTENT: Step 2: Close the Shortfall\n---------------------------\nAs you'll notice, not every expense on the budget list is a crucial one. Return to the worksheet and start evaluating which you can feasibly reduce or even eliminate. Your aim should be to close the shortfall and, if possible, have at least a little cash left over for savings and emergencies.\nFor example, if you discover that you're running a $200 monthly deficit, but you've been spending more than that on a combination of dining out, entertainment and other non-necessities, shave those line items down to a reasonable sum. After playing with the numbers, follow through and make the required spending adjustments. Tightening your belt can be a challenge, but it'll be worth it in the end. It's certainly better than worrying about how you're going to pay your landlord. See \"What Is the Best Way to Save Money?\" for more tips on where to trim your budget. END
 TITLE: How to Improve Credit When Living Paycheck to Paycheck CONTENT: Step 3: Don't Borrow Trouble\n----------------------------\nIt's common for people who are experiencing financial stress to turn to credit products for relief. Resist. It's especially important to steer clear of such subprime products as payday loans and car title loans. Using them likely won't solve the underlying cash flow issue, their interest rates are excessive, and they come with severe consequences for not paying.\nAs for credit cards, be careful. If you start charging things you don't have the money for, you'll find yourself in an even worse position than you are today. \"It's tempting to look at your lines of available credit as a lifeline, but it's a dangerous road to travel,\" says Bruce McClary of the National Foundation for Credit Counseling. You may not be able to meet the payment by the due date, which will be noted on your credit report and cause your credit scores to sink. And if all you can do is send the minimum payments but you keep charging, your balance will swell so it's near or at the credit limit, and that, too, will hurt your scores.\nIf you do charge, you can ensure the activity will help your credit scores rise by always paying the balance in full and on time. END
 TITLE: How to Improve Credit When Living Paycheck to Paycheck CONTENT: Step 4: Increase Your Credit Rating\n-----------------------------------\nAs you're working on closing the financial gap between paychecks by reducing expenses, focus on getting your credit history in a healthy place. Check your credit report and then take a look at your credit scores. Once you see where your credit is at, you can take steps to improve it.\nSome actions you can take to increase your credit scores won't cost you a penny:\n*   **Clear up any errors.** If you spot any errors on your credit report, you can dispute them for free. They may include evidence of fraud (such as credit cards or loans that you didn't open but now have an outstanding balance) or collection accounts that are older than seven years. Investigations take about a month, and if the data is removed, your credit reports and scores will automatically improve.\n*   **Add non-traditional accounts.** If you have too little on your credit reports—called a thin file—because you don't use credit cards or have never taken out any loans, consider adding your cell phone and other utility accounts to your credit report with Experian Boost™† ™, a free tool. When those on-time payments appear in your credit file, they will be calculated into your scores, often giving them an instant hike.\n*   **Be prudent about pursuing new credit products.** When you apply for a credit card or loan, the lender will add a hard inquiry to your credit report. In general, these inquiries have a minor impact on a credit score. For a FICO® Score☉ , one additional credit inquiry might take less than five points off, but they have a greater impact if there's not much on your report.\nAlso concentrate on the actions that matter most to the credit scoring models: the way you pay and the amount you owe. Payment history has the biggest impact on your credit scores, counting for 35% of your FICO® Score, so it's important to pay your bills on time every month.\nIf you already owe quite a bit on revolving debt such as credit cards, eventually you'll want to tackle that debt. After payment history, credit utilization—or your balances as a percentage of total available credit—is the second most crucial scoring consideration, so if you can bring your balances down, your scores should go up.\nYou can end the cycle of living paycheck to paycheck and at the same time ensure that your credit is in a healthy place. Does it require effort? Sure, but when you're finally meeting your bills and have built a credit history that will keep your opportunities open wide, it'll be worth it. END
 TITLE: How Utility Bills Can Boost Your Credit Score CONTENT: Are Utility Bills Reported to Credit Bureaus?\n---------------------------------------------\nUtility bills have historically been left out of consumer credit reports entirely, primarily because they're not considered credit accounts. Even now, utility companies don't automatically report your monthly payments to the three credit reporting agencies (Experian, TransUnion, and Equifax).\nWith a new tool called Experian Boost™† , however, you can have certain utility accounts included in your credit report to help increase your credit score.\nThis tool is available only for your Experian credit report, which means that utility bills will continue to have no influence on your Equifax and TransUnion credit reports, along with your credit scores based on those reports. END
 TITLE: How Utility Bills Can Boost Your Credit Score CONTENT: Utility bills aren't typically used to determine your credit score. But if you're making those monthly payments on time, you may feel like you should get credit for it.\nYou now have the opportunity to get that credit with Experian Boost. Through this tool, you allow Experian to access your bank account information to identify various utility and telecom payments, including your cell phone bill.\nYou'll then have a chance to verify the information and confirm that you want to add it to your credit report. The entire process takes roughly five minutes and, if you qualify for a boost to your credit score, it will happen immediately.\nExperian Boost only considers on-time payments, so you don't have to worry about late payments having a negative impact on your credit score.\nBased on data from Experian, 10% of people who previously didn't have enough information in their credit file to have a credit score became scoreable after using the tool. Also, 75% of people with a FICO® Score☉ below 680 saw an improvement in their score after adding utility payment information to their report. END
 TITLE: How Utility Bills Can Boost Your Credit Score CONTENT: Will Lenders Use My Experian Boost Score?\n-----------------------------------------\nExperian Boost applies to most credit scores that lenders use, including the base FICO® Score, as well as bankcard, mortgage, and auto scores. So once you opt-in and agree to add utility payments to your Experian credit report, they will be included in credit scores based on your Experian credit file.\nRemember, though, that the tool does not affect your credit files with Equifax and TransUnion. So if a lender uses a score based on your credit data from those credit reporting agencies, your utility bill payments won't be baked into the score they see. END
 TITLE: How Utility Bills Can Boost Your Credit Score CONTENT: Can Utility Bills Hurt My Credit?\n---------------------------------\nWhile Experian Boost won't use late payments for utility bills, it's still possible for a delinquent account to damage your credit score.\nSpecifically, this can happen if the service provider sends the account to collections or charges off the debt. This typically won't happen after just one missed payment. But if you miss multiple payments or leave a monthly bill unpaid for months, the provider may enlist the help of a debt collector. Leave it long enough, and it may charge off the account instead, assuming you're not going to pay.\nYour payment history is the most important factor in determining credit scores. It makes up 35% of your FICO® Score and is considered extremely influential to your VantageScore. So having a collections account or a charge-off reported to the credit reporting agencies can damage your credit score significantly.\nWhat's more, the negative tradeline will stay in your credit file with each reporting agency for seven years. And while adding positive payment history can help reduce its impact on your credit score, it can take a long time to recover fully. END
 TITLE: How Utility Bills Can Boost Your Credit Score CONTENT: Next Steps\n----------\nIf you're looking for a way to improve your credit score, Experian Boost can help by including positive utility payment history to your Experian credit file. That information can then be used to increase the credit scores that may be used by lenders when reviewing your future credit applications.\nIn addition to using Experian Boost, it's also important to ensure that you pay all of your monthly debt obligations on time. If you have any delinquencies or collections accounts, get current on them as quickly as possible.\nAlso, work to pay down credit card balances, if necessary, to maintain a reasonable credit utilization rate (the amount of credit card debt you're using as a percentage of the total available). And avoid opening several new credit accounts in a short period. While these aren't the only ways to improve your credit score, they're some of the most important factors to focus on. Finally, be sure to check your free credit report to find out where your credit stands, then take positive steps to build your credit history starting now. END
 TITLE: Financial Inclusion and the LGBTQ Community: Challenges Persist CONTENT: A Slow Path to Equality\n-----------------------\nBefore she was seated on the Supreme Court, Ruth Bader Ginsburg won a 1971 court case that resulted in the U.S. Constitution's 14th Amendment being applied on the basis of sex. The amendment's equal protection clause that helped secure civil rights victories for Black Americans was now also interpreted to mean that men and women must have equal rights, which helped address gender-based discrimination. Unfortunately, it didn't explicitly offer protections based on sexual orientation or gender identity.\nSo up until recently, discrimination against LGBTQ people was often overt and even legal in numerous ways. Eventually, however, courtroom victories led to an expanded interpretation of the 14th Amendment. For instance, a 2015 Supreme Court case interpreted the amendment to mean that same-sex couples could marry in any state, not just states that chose to allow it, solidifying marriage equality nationwide. And in 2020, the Supreme Court decided that employment discrimination against LGBTQ people should also be considered illegal sex discrimination.\nThose decisions were hugely impactful to the livelihoods of the LGBTQ community, but they only apply to those specific areas. The federal Equality Act, a bill in the U.S. Congress, would codify equal rights in all key aspects for LGBTQ people, such as lending, employment, housing and access to public services and federally funded programs. In the meantime, President Biden has issued executive orders reversing discriminatory policies including ones that require the Department of Health and Human Services to prohibit LGBTQ health care discrimination and direct the Department of Housing and Urban Development to prohibit LGBTQ discrimination under the Fair Housing Act.\nThese are all significant strides, but discrimination persists. Currently, some states are passing a record number of laws restricting LGBTQ rights, targeting everything from health care to adoption. Advocacy groups are challenging them, but until it's sorted out in courtrooms, the community is at risk of facing further financial discrimination. END
 TITLE: Financial Inclusion and the LGBTQ Community: Challenges Persist CONTENT: Recognizing Financial Discrimination\n------------------------------------\nFinancial discrimination can show up in various ways for the LGBTQ community. As of now, it's illegal to discriminate against LGBTQ people in marriage and in most housing, employment and health care situations. But issues still exist. For example, the state of Alaska was recently under fire after illegally denying financial benefits to same-sex couples years after marriage equality was passed.\nIt's also important to consider the role of intersectionality in discrimination, says Briona Jenkins, a diversity, equity and inclusion consultant in Austin, Texas, who describes herself as a queer Black woman. \"A lot of the time, people think because we've made such progress in the realm of LGBTQIA+ issues and discrimination, that we're all kind of OK,\" Jenkins explains. \"But I think we forget the intersections of people who are both LGBTQ and people of color, or people who are LGBTQ and have a disability. People who are LGBTQ can be more than one thing at any one time, and we have to overcome so much more—and a lot of that deals with finances.\"\nWhile financial discrimination can appear anywhere, here are some commonly problematic areas to watch out for:\n*   **Access to funding**: There's some good news here. In March 2021, the Consumer Financial Protection Bureau released the updated interpretation of the Equal Credit Opportunity Act making it illegal for lenders to discriminate against a consumer applying for credit (such as loans or credit cards) solely due to sexual orientation or gender identity. While sexual orientation doesn't appear on your credit report or factor into your credit score, that doesn't guarantee you'll be treated fairly by all lenders.\n*   **Name and gender on accounts**: When a transgender or nonbinary person adopts a new name and pronouns, it's psychologically important these are affirmed in all areas of their lives, according to the American Psychiatric Association. However, getting legal documents and identification updated (especially birth certificates) is often a harrowing and expensive process that varies by state. Many financial institutions require legal name or gender marker changes before they will update accounts, which for many LGBTQ people means having financial accounts or cards with the incorrect name. Fortunately, \"more credit card companies and banks are creating system allowances that let trans people use their chosen name,\" says John Auten-Schneider, who runs the personal finance blog Debt Free Guys with his husband David.\n*   **Homebuying discrimination**: In addition to facing discrimination from lenders, it's possible LGBTQ consumers may experience discrimination from real estate agents or sellers in the homebuying process. One way to help reduce this risk is to use a real estate agent who's a member of NAGLREP, an association of LGBTQ real estate agents, since they're familiar with navigating the process for those in the community.\n*   **Insurance denial**: While laws and policies vary by type of insurance, the LGBTQ community has sometimes faced discrimination with life insurance. Auten-Schneider says for those with HIV, there's some progress: \"John Hancock offers life insurance to people who have HIV, and it looks like this may become more common,\" he says.\nLaws and policies are always changing, so be sure to check with the American Civil Liberties Union page dedicated to current LGBTQ rights to stay in the know. END
 TITLE: Financial Inclusion and the LGBTQ Community: Challenges Persist CONTENT: How to Address Financial Discrimination\n---------------------------------------\nIt's important to know your rights so you can determine if you're on the receiving end of illegal discrimination. If you're unable to resolve the situation yourself, you could hire legal representation, or try these routes for recourse:\n*   For housing discrimination, file a complaint with HUD.\n*   For employment discrimination, you can file a complaint with the Equal Employment Opportunity Commission.\n*   If those are unresolved or you have experienced any other forms of discrimination, you can submit a help request to the ACLU.\n*   If you are transgender or gender nonconforming and need advice, contact the Transgender Law Center's Helpdesk. If you need legal representation, the National Center for Transgender Equality has a Transgender Legal Services Network of affirming law firms and legal clinics.\nIt's undeniable that the LGBTQ community has made progress in certain areas compared with decades ago, but adequate legal protection and financial inclusion efforts at the federal and state levels still need to be addressed. Until they are, it's important to be aware of what financial discrimination looks like and where you can go for help if you believe you are a victim. END
 TITLE: The Worst Ways to Redeem Credit Card Rewards CONTENT: Some reward options offer excellent value, but others generally give cardholders the worst bang for their buck. There are exceptions, of course, but you should think twice before redeeming rewards in the following three ways:\n1.  Merchandise: Some rewards programs allow you to cash in points for items in their catalog, often ranging from jewelry to electronics to sports equipment. These things can be tempting, but the value of the points required may outweigh the actual cost of the merchandise.\n2.  Cash back on a travel card: Travel cards usually offer excellent value on travel redemption options, but your value can plummet if you go for cash back instead.\n3.  Pay with points: Some issuers let you use points to pay for new purchases, though the value per point can be poor.\nRead on for more on why these options may not be the best ways to redeem your rewards. END
 TITLE: The Worst Ways to Redeem Credit Card Rewards CONTENT: How to Redeem Credit Card Rewards\n---------------------------------\nReward currency (such as cash back, points or miles) can differ by card and card issuer, and rules for redemption tend to vary as well. Some rewards cards only have one redemption option, while others let you redeem rewards in a variety of ways, such as for gift cards, statement credits, travel or merchandise.\nA decent base value for credit card rewards is 1:1, where one point equals 1 cent. That means a rewards program where $1,000 in spending would land you $10 in rewards value, whether you choose to redeem it as cash back or for another reward valued equivalently. Some redemptions, especially merchandise, can offer a lower value than other options depending on what you get in exchange for your points or miles.\nYou can determine the value by taking the value of the reward item and dividing it by how many points are needed. For example, if a blender worth $100 costs 10,000 points, you would divide 100 by 10,000. That leaves you with 1 cent per point, or a 1:1 value, making it a deal worth considering. But if you could buy the blender at a retailer for $50, redeeming 10,000 points for it wouldn't be a great use of your points since their value then becomes 0.5 cents apiece.\nHere's why you may want to avoid redeeming your rewards in the following ways. END
 TITLE: The Worst Ways to Redeem Credit Card Rewards CONTENT: And the Chase Sapphire Preferred® Card and Chase Sapphire Reserve® cards have a Pay Yourself Back feature that allows cardholders to cover purchases with points and benefit from 25% or 50% more value when redeemed in select rotating categories. END
 TITLE: The Worst Ways to Redeem Credit Card Rewards CONTENT: How to Maximize Credit Card Rewards\n-----------------------------------\nChoosing the wrong redemption option can waste your points, but there are plenty of ways to maximize your credit card rewards program:\n*   **Discover your card's most valuable redemption option.** For example, with cash back cards, a statement credit typically offers the best value, while travel accommodations may give you the best bang for your buck with a travel card.\n*   **Consider introductory bonuses.** Some rewards cards offer a large chunk of points, miles or cash back if you spend a certain amount within a set time frame after opening the account. It's crucial you don't spend unnecessarily just to meet the threshold, but if you already have big purchases to make, scoring one of these bonus offers can boost the value you get from the card.\n*   **Pay attention to bonus categories.** Many rewards programs offer a higher percentage of points or cash back on certain types of spending, such as travel, dining or gas. Think about how you're most likely to use a credit card, and consider finding one with greater rewards for those spending categories to increase the value of your rewards.\n*   **Look for other means of value.** Some cards offer perks like free checked baggage or airport lounge access, discounts on rideshares and other benefits that help further improve the value you get from the account. END
 TITLE: The Worst Ways to Redeem Credit Card Rewards CONTENT: Your Mileage May Vary\n---------------------\nIt's important to remember that what makes a perfect card for one person is a bad deal for another, and vice versa. It comes down to the type of spending you'll use, the card's rewards program and how you want to redeem rewards. Compare the best rewards credit cards on Experian to find the right one for you. END
 TITLE: How to Pay Your Credit Card Bills in a Financial Emergency CONTENT: 1\\. Contact Your Creditors\n--------------------------\nPaying at least the minimum on your credit card bills every month will help you avoid hurting your credit and keep you in good financial standing with your card issuers. But if that's not possible, call your card issuers now. Credit card companies recognize economic downturns, and often respond with assistance programs. For example, your credit card company may allow cardholders to skip payments without accruing interest for a certain time period. Help won't come to you automatically, though, so you must be proactive and contact your card issuers. END
 TITLE: How to Pay Your Credit Card Bills in a Financial Emergency CONTENT: 2\\. Seek Alternative Income Sources\n-----------------------------------\nIf you've lost income, even temporarily, it can be stressful. However, you can get through it by taking advantage of assistance and opportunities.\nIdentify alternative ways to earn money when you're struggling to pay your bills. Consider pursuing money-making option that may make sense for you and your family:\n*   Research industries and companies that are hiring.\n*   Brainstorm ways you might be able to make money from home, such as finding freelance work, tutoring students or selling items online.\n*   If you are still employed, consider getting a second job using employment platforms such as LinkedIn and Indeed. END
 TITLE: How to Pay Your Credit Card Bills in a Financial Emergency CONTENT: 3\\. Take Stock of Your Assets\n-----------------------------\nOne of the first things to know as you create a strategy to pay your credit card bills is exactly how much money you have, whether it's immediately accessible or not.\nTake note of any money you hold in various accounts and investments. Even if you won't use these sources to pay credit card bills, it's important to know where you stand with the following:\n*   Checking and savings accounts\n*   Investment accounts\n*   Retirement accounts\n*   Equity in your home\nAfter that, examine your personal surroundings. What you have inside and outside your home are also important assets, so start to assign conservative values to things you have but don't need. For example, maybe you have a second car that's fully paid off and rarely driven. Also consider furniture, sports equipment or jewelry that doesn't hold much value to you anymore.\nWhile you'll only want to tap sources like your retirement account and investments if you're not able to make ends meet in other ways, it can be a comfort to know that if you do have a pressing financial need, you may be able to turn to what you have or can liquidate in an emergency. END
 TITLE: How to Pay Your Credit Card Bills in a Financial Emergency CONTENT: 4\\. Trim Your Budget\n--------------------\nBudgets are living documents. What you had been spending before a financial emergency can and should change depending on the amount of money you have coming in today. Make a budget to free up as much cash as possible to put toward your credit card bills and other expenses. Hitting that goal may require some sacrifice, but it will also give you a sense of security.\nReview your entire list of expenses carefully. Pinpoint critical line items, such as:\n*   Rent or mortgage\n*   Groceries\n*   Utilities\n*   Medical expenses\nAfter you take into account how much you owe toward these monthly necessities, eliminate or reduce less vital expenses, with the knowledge that it won't last forever. To help ensure success:\n**Rally the troops.** It's one thing to live close to the bone when only you are affected, but another when other people are in the picture. Involve your spouse or partner and your older children in the budgeting process. Band together and determine what you're all willing to give up to keep costs down.\n**Reassess savings.** If you've been putting money aside in an emergency fund, that's great—it may help you through this period. But if you find you don't have enough to fund your savings and pay your credit card bills, you may want to reallocate some or all of your deposits until the situation improves. In some cases you may even reduce or suspend retirement plan contributions. Just remember to begin funding your account in full as soon as financially possible. END
 TITLE: How to Pay Your Credit Card Bills in a Financial Emergency CONTENT: 5\\. Consider Debt Consolidation\n-------------------------------\nBundling multiple credit card balances into a single personal loan or credit card could help you more easily manage payments and lower the amount you pay every month. When looking into consolidating your credit card debt, research rates and credit requirements on personal loans as well as balance transfer credit cards. END
 TITLE: How to Pay Your Credit Card Bills in a Financial Emergency CONTENT: 6\\. Get Help From a Credit Counselor\n------------------------------------\nNonprofit consumer credit counseling agencies exist to help people through hard financial times. They provide free budget and debt counseling sessions, and may recommend a debt management plan where you pay the credit counselor one monthly payment, and they in turn pay your creditors (there is a small monthly fee for this service). You can find an agency through their membership organizations: the National Foundation for Credit Counseling or the Financial Counseling Association of America. END
 TITLE: How to Pay Your Credit Card Bills in a Financial Emergency CONTENT: Prepare for a Better Tomorrow\n-----------------------------\nWhen your financial situation improves, you'll want to be in as strong a position as possible going forward. For this reason, commit to the following actions:\n*   **Borrow sensibly.** Credit cards are payment tools best used for short-term debt. If at all possible, keep the balance to zero or very low. It may be tempting to charge what you can't afford to pay in cash, but avoid this unless absolutely necessary. When your situation improves, you don't want to be faced with huge bills that might be difficult to repay.\n*   **Pay creditors on time whenever possible.** Even if you can't delete your current debts, make an effort to pay at least minimum payments by the due date. It will not just safeguard your credit, but it will also establish positive relationships with your lenders. After your situation improves and you want to finance something at a lowest cost, you can hit the ground running.\n*   **Monitor your credit report.** Credit cards and loans will show up on your credit report, and you want them to reflect positive information. On-time payments coupled with a low credit utilization ratio (how much of your available credit you're using) will help. Understand what creditors report about your payments by taking advantage of Experian's free credit report monitoring. Then, if you spot anything amiss (such as evidence of fraud), you can address it swiftly.\nAfter the dust settles and you are back earning as normal, you can do more than readjust your budget to where it had been—you can strengthen your entire financial picture. Save regularly, spend mindfully and charge only when you can easily manage the debt. Should there be another setback, whether it's minor or major, you'll be prepared to approach it with confidence. END
 TITLE: Should I Finance or Pay Cash for a Car? CONTENT: Benefits of Paying for a Car With Cash\n--------------------------------------\nBuying a car with your own money comes with some distinct benefits. Some great reasons to use cash include:\n*   Your expenses and other obligations won't be affected by a monthly car payment.\n*   Since you're not dealing with a loan, interest won't be added.\n*   You don't have to concern yourself with qualifying for a loan.\n*   You won't get into—or add to existing—debt.\n*   It reduces the chance of overspending on a car that's priced outside your means.\n*   A car loan won't appear on your credit report, so it won't impact your debt-to-income ratio and your ability to qualify for other loans, like a mortgage.\n*   It prevents the possibility of being upside down on a loan, which can happen when you owe more than what the car is worth.\n*   If you run into financial trouble later, you won't have to worry about making your payments on time or defaulting on the loan.\nOwning your car outright generally makes you more financially flexible as well. If needed, you can cut back on the level of insurance you carry since a lender won't be requiring a minimum level of coverage, and you could sell the car if you need some quick cash. END
 TITLE: Should I Finance or Pay Cash for a Car? CONTENT: When Paying for a Car With Cash Might Not Make Sense\n----------------------------------------------------\nOn the other hand, there are some arguments against using your own funds to buy a car. For example:\n*   You might deplete savings that are necessary for current expenses or future emergencies.\n*   You may not have enough to buy a safe and reliable car.\n*   If you need to start or reestablish a credit history, paying with cash won't help, but a loan that you properly manage will.\nIf you're thinking of waiting and saving up cash because you think less-than-perfect credit won't qualify you for a loan, financing still may be an option. Special financing deals are sometimes available to people with lower credit scores, and you may be able to finance a car at a decent rate so you can go to work or school, or use it for your family after all. END
 TITLE: Should I Finance or Pay Cash for a Car? CONTENT: When Is It a Good Idea to Finance a Car?\n----------------------------------------\nWhen you finance a car, you're taking out a loan. You might borrow the money directly from a bank, financing company or credit union, or use dealership financing, where the dealer arranges the loan via the financial institution it works with.\nIn any case, you would usually make a down payment, then repay the debt in equal monthly installments over an agreed-upon term (anywhere from 24 to 84 months). The lender may change fees to process the loan, which is added to the balance, and interest is built into the payments. The interest rate you're offered depends on your credit scores and other factors. Higher credit scores could land you lower rates, and vice versa.\nFinancing a car may be a good idea when:\n*   You want to drive a newer car you'd be unable to save up enough cash for in a reasonable amount of time.\n*   The interest rate is low, so the extra costs won't add much to the overall cost of the vehicle.\n*   The regular payments won't add stress to your current or upcoming budget.\n*   Low monthly payments will free up funds for your other necessary expenses.\n*   You're certain you can and will make the payments on time.\n*   You want to enhance your credit history with an installment loan. END
 TITLE: Should I Finance or Pay Cash for a Car? CONTENT: Alternative Forms of Car Financing\n----------------------------------\nIf you don't have the cash to buy a car, but normal financing isn't feasible, there are other ways to get the car you want. END
 TITLE: Should I Finance or Pay Cash for a Car? CONTENT: Weigh Your Options\n------------------\nBuying a car, either with cash or a loan, is always a major decision. Do so with full knowledge about your income capability, the final costs, and what really makes sense for you. If you're a first-time carbuyer, slow down and take all the facts under consideration. If you choose to finance, be aware that lenders will assess your creditworthiness to determine qualification and terms, so check your credit report long before car shopping. You can get a free copy of your Experian credit report and your FICO® Score☉ . END
 TITLE: How to Avoid Late Payments and Protect Your Credit CONTENT: How to Never Miss a Payment\n---------------------------\nAfter you apply for and obtain a credit product, the lender typically reports your payment history to one or more of the three major credit reporting agencies—Experian, TransUnion and Equifax. Credit scoring companies then produce credit scores based on that info. Scores calculated by [FICO® and VantageScore®]('), the most common credit scoring companies, range from 300 to 850, with higher numbers predicting lower credit risk. Because payment history is the most important factor in these scores, even one missed payment cycle can harm your credit.\nAvoiding late payments is always best, and there are a number of effective strategies you can employ:\n*   **Add due dates to your personal calendar.** Making a note of the due dates for all your bills can help you stay on track each month. Each time you look at your calendar, you'll have a visual prompt.\n*   **Choose the right account manager.** Live with a partner? The person responsible for bill payment should have good organizational skills. If that's not you, let your partner take over. Stay in the loop, though, by checking your accounts periodically and make sure you're not overspending.\n*   **Make account management a routine.** Decide on a day and time to review bills. For example, you may choose every Friday morning before work to pull out all of your statements and pay what needs to be settled up. If you make a weekly habit out of it, you won't have to deal with bills that pile up.\n*   **Set alerts and reminders.** Upon request, most financial institutions will send you text alerts or emails to remind you of upcoming due dates. Those incoming messages won't allow you to forget to pay! Alternatively, set up reminders on your phone or computer for times when you're typically free and handle your bill-paying right then.\n*   **Enroll in automatic payments.** Almost all banks and credit unions give you the option to set up automatic bill pay. The online bill payment system allows you to select the amount you want to pay a creditor on a certain date. That sum will be deducted from your checking account, then sent to the creditor on time. This works perfectly for loans because the payment is fixed, and can also be ideal for credit cards. Autopay features on a credit card often let you choose to pay just the minimum payment due, the full balance or a custom amount.\n*   **Use a third party.** If you don't have the time and wherewithal for account management, hiring a service can make sense. Professional daily money managers help people do everything from pay bills to organize documents. If you really need assistance and can afford the typically hefty fees, they're worth checking out. END
 TITLE: How to Avoid Late Payments and Protect Your Credit CONTENT: What to Do if You Can't Make a Payment\n--------------------------------------\nThere may come a point when money is especially tight and making all your payments on time seems impossible. In that case, prioritize and strategize. Review your budget to identify any unnecessary expenses that you can reduce or eliminate so you can make your debt payments on time. Also consider various ways to scrape up some cash quickly so you can make the minimum payments, such as finding a side job, selling assets or borrowing money from a friend or family member.\nIf you still can't meet the due dates on your accounts, try these strategies for dealing with different types of accounts:\n*   **Mortgage payments**: There are a number of remedies to explore when you can't send your entire mortgage payment on time, but start with contacting your lender as soon as you know you will miss a payment. If the problem is temporary, a forbearance may work. In this case, the lender agrees to a reduction or even complete suspension of payments for a few months. Longer-term options include loan modification, which allows you to change the terms of the loan with your current lender, and refinancing the loan with a new lender so the payments are more affordable.\n*   **Auto loans**: Before missing a car loan payment, contact the lender and explain that you're at risk of falling behind on your car loan. You may be able to arrange a deferment, which would allow you to skip a small number of payments without penalties or fees. The number of payments you can defer depends on the lender, so don't count on it for repeated delinquencies. If you need permanently reduced payments, consider refinancing the loan to secure a lower interest rate or a longer repayment period.\n*   **Personal loans and credit cards**: If you worry you'll fall behind on these payments, jump on the phone immediately and explain your situation to your card issuer. You may be able to enter into a hardship plan where you send no or lower than normal payments for a few months while keeping your account in good standing.\n*   **Utility and other monthly bills**: Contact your utility company to ask if you can delay a payment for a month or two. If your income is low or you're unemployed, you may qualify for the Low Income Home Energy Assistance Program, which helps individuals and families pay their energy bills. While utility payments typically do not hurt your credit unless an account is sent to collections, it's still important to communicate with your provider to keep your account in good standing and avoid any service disruption. END
 TITLE: How to Avoid Late Payments and Protect Your Credit CONTENT: What to Do if You've Already Missed a Payment\n---------------------------------------------\nIf you have already missed a due date, take steps to offset further damage:\n*   **Pay before you miss an entire cycle.** Missing a due date will usually trigger a late fee, but a late payment won't appear on your credit report until it's more than 29 days delinquent. That means you have some time to come up with the money before it does result in credit damage.\n*   **Communicate with the lender.** Although it's better to contact your lender before missing a payment, it's still wise to call after. At the very least you may be able to have the late payment fee waived.\n*   **Resume timely payments.** The more on-time payments you have listed on your credit report, the better for your score, so get back on track as soon as possible.\nOnce you're 30 days or more past due on a payment, the late payment will be noted and added to your credit report. Since creditors don't necessarily report updated information to the credit bureaus every day, it may take a few weeks for the late payment to show up on your credit report, at which point it may begin to have an impact on your scores. END
 TITLE: How to Avoid Late Payments and Protect Your Credit CONTENT: How Do Late Payments Affect Your Credit Score?\n----------------------------------------------\nAfter you miss a complete billing cycle, a notation will appear on your credit report that a payment is 30 days late. Miss another and it will show as 60 days late, and so on.\nYour current credit profile will dictate the level of scoring damage late payments can have on your credit scores. In general, the higher your credit scores are now, the more your scores will drop after a late payment appears. If your credit scores are already on the low side, a late payment will still have an effect, but it won't be quite so dramatic.\nThe good news is that the impact of late payments on your credit scores typically decreases over time. And with plenty of positive activity afterward, a single late payment will have a diminished impact. Late payments stay on credit reports for seven years; once that time is up and the delinquency is no longer reported, your scores won't be impacted at all.\nTo better understand the effect your payment history has on your credit, get your free credit report and scores from Experian and review them carefully. You'll want to track the age of any late payments and know when they're due to be removed. If you believe a late payment is showing up in error, you may want to dispute it. Indicate the date the late payments should have been wiped clean from your report, and your file will be updated if the payment is found to be in error. END
 TITLE: Can You Have a Negative Balance on a Credit Card? CONTENT: What Can Cause a Negative Balance on Your Credit Card?\n------------------------------------------------------\nWhen you use your credit card to make a purchase, the total amount borrowed will appear as a positive balance on your credit card statement. A negative balance, on the other hand, will show up as a credit. A minus sign will appear before the number of your current balance, such as -$200.\nNegative balances can happen for the following reasons:\n*   **Fraudulent charge reversal**: If someone used your credit card without your permission, the amount charged is not your financial responsibility. Once the fraud is discovered, the credit card issuer will reverse the transaction, which could result in a negative balance.\n*   **Returned purchase refund**: Maybe you bought something with your card but decided not to keep it. In that case, the initial charge on your account would be credited and could result in a negative balance.\n*   **Overpayment of the bill**: If you forgot you already sent in a payment or made a mistake and paid too much, you could end up with a negative balance.\n*   **Canceled fees**: Perhaps you negotiated with the credit card issuer to waive a late fee or other fees. If you already paid off a balance that included those charges, a negative balance will appear on your statement.\n*   **Statement credit**: As a benefit of your rewards credit card, you may earn a cash bonus after making certain charges. The value may appear as a statement credit, so if you were at a zero balance before, the reward will show up as a negative balance. END
 TITLE: Can You Have a Negative Balance on a Credit Card? CONTENT: Does a Negative Balance Affect Your Credit Score?\n-------------------------------------------------\nA negative balance doesn't factor into your payment history, so the issuer won't send that information to the three major credit reporting agencies, Experian, TransUnion and Equifax. Any lender or business that pulls your credit reports will not know that you have a negative balance.\nBecause credit scoring models such as FICO® and VantageScore® only use the financial data on a credit report to develop a score, negative balances aren't calculated into scores. That said, a negative balance indicates your credit utilization, or the percentage of available credit you're using relative to your credit limit, is at 0% for that card. Credit utilization is one of the most important credit scoring factors, and the lower your balance, the better your utilization—so a negative balance works in your favor.\nAdditionally, a negative balance has no impact on your credit card's limit. For example, if the limit is $5,000 and the issuer owes you $200, your new credit limit isn't $5,200. You will be able to charge up to the limit plus the negative balance, but your credit limit remains the same. END
 TITLE: Can You Have a Negative Balance on a Credit Card? CONTENT: What to Do If You Have a Negative Balance\n-----------------------------------------\nThere is nothing specific you need to do when you have a negative balance. In fact, your credit card issuer may take care of the issue itself and send you a check for the negative balance amount.\nIf you choose to, you can simply use your credit card for transactions and the negative balance will be automatically applied to the charges. So if the negative balance is $200 and you charge $300, your current balance will be $100. There's nothing left for you to do—except pay your bill when it comes.\nIf the amount is substantial, however, you may want to claim it, especially if you need the money for other things. In that case, contact the credit issuer to request a refund. It may send the amount owed to your bank account as a direct deposit, or send you a physical check or money order. You won't have to wait long for the money: According to the terms of the Truth in Lending Act, issuers must refund a negative balance greater than $1 within seven business days of receiving your written request.\nIf the issuer has a brick and mortar presence, you may even be able to go into a branch and request it be given in cash. END
 TITLE: Can You Have a Negative Balance on a Credit Card? CONTENT: Monitor Your Finances to Stay in the Know\n-----------------------------------------\nKeeping an eye on your credit card statements so you know what you owe as well as what might be owed to you is always a good idea. So is monitoring your credit report to ensure that everything is accurate. Obtain your free Experian credit report on a regular basis to understand what lenders and other businesses see when they pull your credit report. END
 TITLE: How to Find the Best Private Student Loan for Your Needs CONTENT: Differences Between Federal and Private Student Loans\n-----------------------------------------------------\nAlthough federal student loans and private student loans are for your education, they work in different ways.\nThe U.S. Department of Education issues direct loans, and the interest rates and terms are set by law. Qualification is not contingent on your credit history or credit scores. If you demonstrate economic need, you may receive a _subsidized loan_, which means the government will pay the interest on the loan while you are enrolled at least half-time in school, during a grace period or if you've deferred the loan. With an _unsubsidized loan_, interest will accrue during all periods. Federal student loans come with various repayment options, and interest rates are low and fixed.\nPrivate student loans, on the other hand, are offered by financial institutions including banks, credit unions and lenders that specialize in student loans, such as Sallie Mae. Private lenders consider your creditworthiness when deciding whether to offer you a loan and what your interest rate and terms will be. These lenders determine their own interest rates, which may be fixed or variable, as well as repayment terms and other benefits.\nEven if you can score a low-rate private student loan, tapping out what you can get from the government first is wise. Federal loans have undeniable benefits, such as long and flexible repayment periods, the ability to defer or forbear payments, and payment options that are based on your income and expenses. END
 TITLE: How to Find the Best Private Student Loan for Your Needs CONTENT: Why Should You Consider a Private Student Loan?\n-----------------------------------------------\nThere are two main reasons you may want to get a private student loan:\n*   **Potentially more money available**: Maybe you need to borrow more money than the federal government will lend you. A private student loan can fill in the gap, giving you the financial security required to continue your education.\n*   **Great rates for good credit**: If your credit history is attractive and credit scores are high, you may be able to qualify for a private student loan with a competitive interest rate. The average federal student loan interest rate for the 2020-2021 academic year is 2.75% for undergraduate loans and 4.30% for graduate loans. Private student loan interest rates vary by lender. Here are a few examples:\nCollegeAve\nSoFi\nSallie Mae\n**Fixed APR Undergraduate**\n3.34% - 12.99%\n4.23% - 11.76%\n4.25% - 12.35%\n**Variable APR Undergraduate**\n1.04% - 11.98%\n1.90% - 11.66%\n1.25% - 11.15%\n**Fixed APR Graduate**\n4.39% - 11.98%\n4.13% - 11.83%\n4.75% - 12.11%\n**Variable APR Graduate**\n1.24% - 10.97%\n1.80% - 11.73%\n2.25% - 11.76%\nNote: All rates contingent on using autopay to make loan payments.\nAnother potential method to meet a college expense shortfall is with a personal loan. Private student loans are usually better for this purpose, however, because they typically offer significantly lower rates. APRs for personal loans range from about 6% to 36%, according to Experian data. Moreover, private student loans usually allow you to delay payments until you're finished with school (though you will accrue interest during that time); personal loans do not. END
 TITLE: How to Find the Best Private Student Loan for Your Needs CONTENT: How to Start Your Search for a Private Student Loan\n---------------------------------------------------\nTerms, rates and features on private student loans differ by lender and by your credit standing. Before you start looking, check your credit reports and credit scores. If you have already developed a good credit history and a high credit score, you may easily qualify for a loan with great terms.\nAs a college student, however, you may be new to credit, which could make it more difficult to get a low interest rate on your own. In that case, consider asking someone who does have good credit (ideally a parent or close relative) to cosign the loan for you. If you find a cosigner, he or she will be liable for the debt if you fail to make your loan payments. This requires a great deal of trust, so if you do go this route, be certain that you can manage the payments long into the future.\nHere are a few ways to start your search for a private loan:\n*   **Scan sites that compare or review private student loans.** Bankrate, Forbes and U.S. News are just a few of the media outlets that rank and review a wide variety of private student loans. Experian CreditMatch™ can help you see which student loans you may qualify for. In an easy-to read format, these sites list the lender, interest rate, credit score requirement, loan amount and other relevant details.\n*   **Use a website that matches you to student loans.** Experian CreditMatch™ allows you to view many offers all in one place.\n*   **Check with your bank.** Large and small banks often offer private student loans. If you've been with your bank for a number of years, ask what they have available for good customers.\n*   **Become a credit union member.** Credit unions are similar to banks, but are nonprofit financial institutions. As such, they may offer low-rate loans to members, even if you're just starting out. You can use Credit Union Student Choice to find a credit union in your area that offers private student loans.\nAfter researching several private student loans, identify the one that matches your credit rating (or that of the cosigner) and has these desired qualities:\n*   **Lowest interest rate**: The interest rate you get will have a strong impact on the total interest you end up paying.  \n    Here's an example of the difference you could pay on a $10,000 loan with a five-year term depending on your rate:\n    **3% interest rate**: $179.69 monthly payments; $781.21 total interest paid\n    **12% interest rate**: $222.44 monthly payments; $3,346.67 total interest paid\n*   **Reasonable repayment term**: All loans come with a set repayment term. For example, College Ave loans offer terms of five, eight, 10 and 15 years. The shorter the term, the higher the payment—but the less you'll pay in interest. Conversely, the longer the term, the lower the payment and the more you'll pay in interest.  \n    Here's an example of the difference you could pay on a $10,000 loan with a 6% interest rate depending on your term length:\n    **Five-year term**: $193.33 monthly payments; $1,599.68 total interest paid\n    **15-year term**: $75.82 monthly payments; $6,376.31 total interest paid\n*   **Compelling perks**: Because the private student loan market is highly competitive, some lenders offer perks to entice borrowers. For example, a lender may give cash reward incentives for good grades, or an interest rate discount if you sign up for automatic payments or if you make interest-only payments while you're enrolled in school and during the grace period. END
 TITLE: How to Find the Best Private Student Loan for Your Needs CONTENT: What to Do When Private Student Loans Aren't an Option\n------------------------------------------------------\nIf your credit rating disqualifies you for a private student loan (or the terms are unattractive) and you already have federal student loans, consider other ways to manage your finances so you can stay in school.\n*   **Grants and scholarships**: When you filled out your Free Application for Federal Student Aid (FAFSA), you would have learned if you were eligible for any federal grants, but other grants exist. Since you don't have to repay them, they're worth exploring. Check out your state grant agency for state grants, as well as those that might be awarded by your specific school, are gender-based, are for underrepresented students or are earmarked for certain graduate programs. Scholarships, too, may be available. Your school's financial aid office should be able to help you determine what might be available, but you can also use the U.S. Department of Labor's scholarship search tool.\n*   **Help from your financial aid office**: Contact your school's financial aid office for assistance. They may be able to provide you with an emergency loan, connect you with a work-study program or restructure your financial aid award so you receive more money.\n*   **Part-time job**: Sometimes extra income is the solution, so consider getting a part-time job to help you make ends meet without having to borrow. Or trim unnecessary expenses so you have enough money to live on and pay for your education.\n*   **Loan from family**: Another option is to ask a relative for an interest-free or low-interest loan that you can repay when you're finished with school and have a full-time job. Make sure you make the agreement official, with terms spelled out. END
 TITLE: How to Find the Best Private Student Loan for Your Needs CONTENT: Let Your Credit Help You\n------------------------\nDuring this time you can improve your credit reports and scores by paying all your credit accounts on time and driving down revolving debt such as credit card balances. Consider free credit monitoring from Experian to track your progress.\nDoing your research and being prepared to apply for loans or take other necessary steps will help you get the funds you need to achieve your college degree—and help put you on a path toward future success. END
 TITLE: How to Plan Your Honeymoon on a Budget CONTENT: As you start to plan your honeymoon, it's important that you first create a personal budget. Doing this will help you better understand your income, expenses and ability to save. The earlier you get your budget established, the better, since it will prevent overspending down the line.\nA budget is simply a plan: You still decide where you want your money to go, but a budget provides guardrails to keep you on a steady course. You can create one with a pencil and paper or use a spreadsheet. Whichever method you use, the process is the same.\nEvery budget includes a rundown of the following:\n*   **Net monthly income**: This is what gets deposited into your bank account over the course of a month. If your income is steady, find this by totaling up all the money you received from paychecks and other income last month. If your income is more unpredictable, total your average income for the past three to six months.\n*   **Expenses**: Note all your regular monthly bills—from rent and utilities to gas and food—as well as those that arise occasionally, such as estimated medical and holiday expenses. If you have debt, include those payments. Also add in the amount you put toward savings, such as deposits made to your emergency fund and retirement account and contributions toward other financial goals, such as a down payment on a house. Finally, include your discretionary expenses, such as how much you spend on clothes and entertainment in a month. Cutting back on discretionary spending before your wedding will help add to your honeymoon budget.\n*   **Available funds**: This might be cash you've already saved with a honeymoon in mind or that you expect to receive as wedding gifts.\nTo find out how much you may be able to save for your honeymoon, subtract the total of your monthly expenses from your income, then multiply that figure by the number of months before your honeymoon. Add in the available funds, and there's your honeymoon budget.\n**_Example_**: $3,000 monthly income - $2,500 expenses = $500. You have one year to save: $500 x 12 = $6,000. With $1,000 in extra available funds, you'd have $7,000 ($1,000 + $6,000) to spend on your honeymoon.\nYour budget will help you figure out the type of honeymoon you can take without breaking the bank. If the amount you'd be able to save is $1,000, a weekend getaway at a local bed and breakfast may be among your options, while $10,000 will provide you with a longer and more luxurious trip.\nAfter that, start to plan your honeymoon. Imagine you decide to spend $8,000. Break the figure down with estimates of where that money will go:\n*   Airfare and travel insurance: $1,800\n*   Ground transportation, tips and extras: $1,000\n*   Hotel: $1,500\n*   Food and drink: $1,500\n*   Entertainment: $1,000\n*   Shopping: $1,200\nTotal cost: $8,000.\nThis is a great starting point, but still leaves room for flexibility. Want a more elaborate honeymoon? Consider shortening the trip, but upgrading your accommodations. It works the other way too: If you prefer an extended getaway, opt for less-expensive per-night arrangements. If you're not happy with what your budget can get you, pare down spending or add to your income so you can save more for your trip. Once you arrive at a plan you're satisfied with, you can start making travel commitments and setting your itinerary. END
 TITLE: How to Plan Your Honeymoon on a Budget CONTENT: Plan Your Trip Early\n--------------------\nPlanning your trip well in advance will help you obtain the best travel deals. Last minute discounts may exist, but you don't want to rely on them or risk not being able to find anything. Airfare and hotel costs can skyrocket as your travel date approaches, which can throw your plans off track.\nStart by exploring travel websites to see what prices are available, comparing airlines and hotel rates in various locations with different companies. You can do your research, book your stay and pay all from the comfort of your laptop. Discounts are often available if you use online travel consolidators for vacation packages, which bundles airfare, hotels and tours. These packages may be more restrictive, but the money you save could allow you to do things you wouldn't have been able to do otherwise.\nIf you need help, consult with a travel agent who can help you plan a trip that works for your budget. Explain what you're looking for, and an agent can curate your travel choices and provide advice about lowering costs. While you'll pay for the convenience, it could be worth the cost to get exactly what you're looking for. END
 TITLE: How to Plan Your Honeymoon on a Budget CONTENT: Look for Offseason Deals\n------------------------\nJune may be synonymous with weddings, but the most popular wedding dates for the past two years actually fell in October, according to a study by wedding registry website Zola. So if you want a honeymoon soon after walking down the aisle, you may be leaving in the fall. The best deals for couples during that time, according to TripSavvy, include St. Martin, Costa Rica and Breckenridge, Colorado.\nYou may not want to limit yourself to a trip immediately after the wedding if you'll get a lot more for your travel dollar by waiting until the offseason. When that may be depends on the destination. In Napa Valley, California, the low season is November through February; in the Bahamas, it's late April through mid-December. Although the weather may not be ideal, you'll have fewer crowds to deal with and you'll be able to stretch your dollar further.\nJust don't sacrifice enjoyment. Decide if the savings is worth discomfort or inconvenience. Offseason can also mean closed museums, attractions and even many restaurants. END
 TITLE: How to Plan Your Honeymoon on a Budget CONTENT: Take Advantage of Travel Rewards Credit Cards\n---------------------------------------------\nCredit cards designed with the traveler in mind are fantastic honeymoon tools. You can use them to earn points and miles, then trade in the rewards for free airfare and hotel rooms. Other benefits of travel cards include:\n*   Flight and lodging upgrades\n*   No foreign transaction fees\n*   Reimbursements for TSA Precheck, Global Entry or CLEAR\n*   Early boarding\n*   Free checked bags\n*   Travel agents and special customer service\n*   Deals on car rentals\n*   Travel insurance\n*   Complimentary hotel breakfasts and dining credits\nThere are two basic types of travel cards: general-use and co-branded cards. General travel cards are the most flexible, as the rewards they accrue can be used with almost any airline or hotel chain. Co-branded cards are affiliated with specific airlines or hotels which offer greater discounts with those companies.\nTo qualify for most of these cards, your scores should be in the good to excellent range: 670 to 850. Research your travel credit card options and consider applying for the card that best matches your lifestyle and credit scores. Use Experian CreditMatch™ to see which cards are for you.\nSome travel cards have what's called an intro bonus, which is a certain amount of points or miles you can earn by opening the account and spending a certain sum within a few months. In general, credit cards with higher bonus points require a larger minimum spend, such as Chase Sapphire Preferred® Card, which offers 100,000 points (worth $1,250 when used for travel through Chase's Ultimate Rewards portal) after you charge $4,000 in the first 3 months after opening the account. Alternatively, the intro bonus for Chase Freedom Unlimited® can earn you $200 if you spend $500 in the first 3 months you have the card.\nTravel credit cards can come with high annual fees. Make sure the value of the benefits you will use outweigh that cost. The American Express® Gold Card, for example, has a $250 annual fee, but the card's ability to earn up to $120 in dining credits and up $120 in Uber Cash on Gold can help take the bite out of that annual fee. Before you apply, however, understand that the American Express® Gold Card works differently than traditional credit cards, and allows you to carry a balance only for certain charges, not all. Terms apply.\nWhichever travel card you obtain, it will come with the ability to accumulate rewards as you charge. The months preceding your honeymoon are perfect for building them, both from the bonus as well as by spending.\nYou may also be able to maximize points by spending in specific categories. Pay attention to high-value point accumulation opportunities. The Hilton Honors American Express Surpass® Card earns 12 Hilton Honors points for every dollar you spend on eligible purchases charged to your card directly from a hotel in the Hilton portfolio; 6 points per dollar on eligible purchases at U.S. restaurants, U.S. supermarkets and U.S. gas stations; and 3 points per dollar spent on all other purchases. Terms apply.\nYou can redeem rewards for many things, but it helps to understand where you can get the most value for your points or miles. With The Platinum Card® from American Express, for example, the redemption value is 1 cent per point for travel, but usually less when redeemed with partner sites. Terms apply.\n**_Credit card management tip_**: Using credit cards to build rewards can help you save, but keep debt to zero by paying your bill in full every month. Credit card rewards will never be worth more than the interest on revolved balances. Never spend unnecessarily in pursuit of rewards, and only use your rewards cards to make purchases you were already planning to make. END
 TITLE: How to Plan Your Honeymoon on a Budget CONTENT: Some travel cards have what's called an intro bonus, which is a certain amount of points or miles you can earn by opening the account and spending a certain sum within a few months. In general, credit cards with higher bonus points require a larger minimum spend, such as Chase Sapphire Preferred® Card, which offers 100,000 points (worth $1,250 when used for travel through Chase's Ultimate Rewards portal) after you charge $4,000 in the first 3 months after opening the account. Alternatively, the intro bonus for Chase Freedom Unlimited® can earn you $200 if you spend $500 in the first 3 months you have the card. END
 TITLE: How to Plan Your Honeymoon on a Budget CONTENT: You may also be able to maximize points by spending in specific categories. Pay attention to high-value point accumulation opportunities. The Hilton Honors American Express Surpass® Card earns 12 Hilton Honors points for every dollar you spend on eligible purchases charged to your card directly from a hotel in the Hilton portfolio; 6 points per dollar on eligible purchases at U.S. restaurants, U.S. supermarkets and U.S. gas stations; and 3 points per dollar spent on all other purchases. Terms apply. END
 TITLE: How to Plan Your Honeymoon on a Budget CONTENT: Keep Exchange Rates in Mind\n---------------------------\nIf you're planning an international vacation, be aware of currency exchange rates. Your dollars will go furthest in countries that offer the best exchange rates. Before you book your stay, use an online currency converter to get a grasp on how far your dollars will go in another country when converted to a foreign currency.\nFor example, if you plan to spend about $1,000 while in England on your honeymoon, currency conversion reduces that sum to about £750. Find out how much meals and incidentals cost locally to see how far the converted amount will take you. Exchange rates rise and fall, which can impact your budget. Keep an eye on those rates before you leave so you know what to expect and can modify your spending plan.\nYou should also make sure you're using the right credit card while you're traveling internationally. Foreign transaction fees typically add 3% to your credit card purchases, but some cards don't charge these fees. Make sure your travel card is one of them before you start making purchases overseas. If it does, apply for a card designed for international travel. END
 TITLE: How to Plan Your Honeymoon on a Budget CONTENT: Consider a Honeymoon Registry\n-----------------------------\nYet another strategy to reduce the cost of your trip is to set up a honeymoon registry along with your wedding registry. This way you can politely ask friends and family members to contribute money that will go toward your trip.\nYou can request the funds be sent directly to you with an electronic transfer or a check, or you may opt to use a honeymoon registry site such as Honeyfund, Hitchd or HoneymoonWishes. With them, you can register for everything that goes into your honeymoon, from flights to activities, and your guests can either give enough for the item you selected or donate what they can afford.\nOnline honeymoon registry sites may charge fees. In many cases there is a cost to start one up, and there will probably be transaction and payment processing fees as well. Your guests won't be responsible for paying those surcharges—they come out of the value of what you are given instead. Before enrolling in a honeymoon registry site, read the terms of the agreement. All associated costs will be spelled out, so you can make an educated choice on which to use. END
 TITLE: How to Plan Your Honeymoon on a Budget CONTENT: Keep an Eye on Your Credit Through the Process\n----------------------------------------------\nEach of these techniques will keep costs to a minimum. But as you implement the ones that work for you, it's important to pay attention to your credit history. You can access your Experian credit report and FICO® Score☉ for free. Monitoring your credit with Experian helps you catch changes to your credit report early, and can let you know if, for instance, your wedding or honeymoon spending is taking a toll on your credit score. Approach your honeymoon plans in a thoughtful way and you'll be on your way to a credit and money-savvy marriage. END
 TITLE: Does Going Over My Credit Limit Affect My Credit Score? CONTENT: Credit utilization is one of the top two influential factors in the most commonly used consumer credit scoring models—those from FICO® and VantageScore®. These scoring models consider both overall credit utilization—how much of your total available credit you're using—and utilization per credit card, which is the percentage of available credit you're using on a single card, when determining your credit scores.\nIt's best to keep your credit utilization ratio, both overall and on individual credit cards, under 30% to avoid seriously impacting your credit scores. So, for example, if you have three credit cards that together allow you to borrow a total of $10,000 and your combined debt is less than $3,000, you're in a fine position. And if you have a card with a $1,000 credit limit, keeping your balance under $300 is best. The less you owe, the better for your scores.\nUsing credit cards and paying off your balances every month or keeping balances very low shows financial responsibility. Maxing out your credit cards and even going over your credit limit, however, is an indication that you may be struggling financially. That can lower your credit scores and make it more challenging to get approved for other forms of credit.\nTo credit scoring models and lenders, going over your credit limit is a red flag. More, exceeding your credit card's limit can put your account into default. If that happens, it will be noted on your credit report and be negatively factored into your credit score. END
 TITLE: Does Going Over My Credit Limit Affect My Credit Score? CONTENT: What Happens When You Go Over Your Credit Limit?\n------------------------------------------------\nDepending on your credit card issuer, going over your credit limit will produce different outcomes. For example:\n*   **Declined transaction**: If you're at or over your limit, you may not be able to complete a purchase with your credit card.\n*   **Increased interest rate**: If you go over your credit limit, the card issuer could begin charging you a much higher annual percentage rate (APR), called a penalty APR or default APR. This higher interest rate will make repaying the debt more difficult because more of your payment will go toward interest.\n*   **Reduced credit accessibility**: Because going over the limit is a sign that you may be in financial trouble, the issuer may pull back by lowering your credit limit or even canceling your account.\nIf your credit card offers over-limit protection and you opt in, you can go over your credit limit with fewer associated troubles. For example, the transactions will go through (up to a set amount, which is determined by the issuer), but likely you'll be charged a fee when you take advantage of it. Being able to go over the limit may be convenient, but it can also get expensive—and it will still hurt your credit. END
 TITLE: Does Going Over My Credit Limit Affect My Credit Score? CONTENT: What to Do if You Go Over Your Credit Limit\n-------------------------------------------\nTo avoid the consequences associated with going over your credit limit, take action:\n*   **Make a payment immediately.** Try to pay enough so your credit utilization ratio is in a healthy place. Start by sending enough to get it under the limit, then drive the balance down so you have at least 70% available credit.\n*   **Concentrate on the problem card.** If you have multiple credit cards, but this is the only one where you've exceeded your limit, strategize. Make the minimum payments to the others and the most to the card that's hurting your credit utilization ratio the most.\n*   **Request a credit limit increase.** If your credit score is decent, you've been managing other accounts well, your income can handle an expanded credit line and you have a positive relationship with the credit card issuer, you can request a higher credit limit. That will instantly improve your credit utilization ratio because you'll have more available credit.\nIn the future, avoid getting too close to your credit limit. Many credit card issuers allow cardholders to sign up for email and text alerts when your balance is reaching the danger point. But also keep a close eye on your balances on your own. Make a habit of tracking your spending in real time, and monitoring your statements online weekly if not daily. Stop charging when your debt starts to get too high.\nAdditionally, monitor your credit so you can see how your credit utilization is affecting your scores. You can get your free FICO® Score☉ from Experian to see where you stand. As you employ methods to bring down your balances and ensure that your credit utilization ratio is in a good place, track your credit scores to see how they've changed. You might be surprised at the improvement you'll see once credit card balances are paid down. END
 TITLE: How to Save Money on Property Taxes CONTENT: Understanding Property Taxes\n----------------------------\nThree factors determine your property tax bill: your home's assessed value, its taxable value, and the mill rate your town or city, school district and other authorities use to calculate your tax.\n*   The **assessed value** of your home tracks its market value but seldom equals it exactly. It is determined by an assessor employed or contracted by your municipality who evaluates your property based on its size and configuration, condition, location and relative value in comparison with neighboring properties. Counties, cities and towns typically perform valuations on properties in cycles ranging from every three years to every five years.\n*   The **taxable value** of your home is the percentage, or _assessment ratio_, of your home's assessed value that is subject to property tax. In many municipalities, assessed value and taxable value are the same—in other words, the assessment ratio is 100%—but some authorities tax a lower percentage of the assessed value.\n*   The **mill rate** is the number of dollars you are charged in tax per thousand dollars of your home's taxable value. It is expressed as a simple number such as 16 or 18.5 (not as a percentage). To calculate your tax, divide the mill rate by 1,000 and then multiply the result by your home's taxable value.\nAs an example, consider a home with an assessed value of $400,000 in a town with a mill rate of 17 that applies an 80% assessment ratio:\nMill rate = 17\/1000 = 0.017\nTaxable value = 80% x $400,000 = $320,000\nProperty tax = 0.017 x $320,000 = $5,440\nAn increase to any of these factors—assessed value, assessment ratio or mill rate—will hike your property taxes. END
 TITLE: How to Save Money on Property Taxes CONTENT: Why Are Property Taxes Going Up?\n--------------------------------\nWhat's driving most recent property tax increases is growth in assessed property values, in line with surging home values across the country. Rising home prices lead to increased assessments, which in turn increase property tax bills. The average property tax on a single-family home in the U.S. increased 4.41% in 2020, to $3,719, according to ATTOM Data Solutions, a provider of national real estate data and analytics.\nSome 55% of the 220 metropolitan statistical areas analyzed by ATTOM Data Solutions saw average property tax increases greater than the national average, including seven metro areas whose property taxes were 10% or greater:\n*   Salt Lake City: +11.4%\n*   San Francisco: +11.1%\n*   San Jose, California: +10.8%\n*   Seattle: +10.3%\n*   Atlanta: +10.2%\n*   San Diego: +10.2%\n*   Tampa, Florida: +10%\nWhile few homeowners would want to halt rising property values, the wealth gains they bring typically aren't felt until it's time to sell the house (or borrow against it). Increasing property taxes, on the other hand, can put an immediate strain on household budgets. If you're in that situation, you're not alone. Here are five tips that could help you reduce your tax bite. END
 TITLE: How to Save Money on Property Taxes CONTENT: Review Your Property Tax Card\n-----------------------------\nYour local tax assessor can (and must) furnish you with a copy of your tax card, which reflects the information used to determine your property's assessed value. END
 TITLE: How to Save Money on Property Taxes CONTENT: Review Your Neighbors' Property Tax Cards\n-----------------------------------------\nTax cards are public records, so you can check your assessment against those of your neighbors to see if they sync up. Look for disparities—either comparable properties to your own that are assigned lower assessed values or properties with assessments close to yours that offer significant structural enhancements when compared with your home (for example, a second-story addition on a ranch house, a garage instead of a carport, etc.). If you find clear discrepancies in assessed values, you have a good chance of appealing your assessment. END
 TITLE: How to Save Money on Property Taxes CONTENT: Show the Tax Assessor Around\n----------------------------\nWhen assessors perform revaluations, they may or may not attempt to visit your home to check the status of its interior. If they do not view the interior, they may make assumptions about the value of appliances and other structural features, and that could inflate your home's assessed value.\nIf you know a revaluation is scheduled, or if you're appealing your assessment, be sure to do a walk-through of the home with your assessor so you can let them know about things like that 15-year-old furnace and the unfinished basement that could offset some of your assessed value. Bear in mind, however, that the assessor will also take into account recent renovations, and those could influence the assessment in the other direction. END
 TITLE: How to Save Money on Property Taxes CONTENT: Apply for Tax Credits and Exemptions\n------------------------------------\nSome states and municipalities offer property tax relief in the form of credits and exemptions based on:\n*   **Age:** Senior citizens (as defined according to local law) may be spared part of their property tax obligation.\n*   **Military service:** Veterans and current service members may be eligible for property tax breaks.\n*   **Homestead exemption:** Laws in some states shield surviving spouses of primary breadwinners from certain tax obligations.\n*   **Disabilities:** If you or another resident of your home is a person with disabilities, you may qualify for a reduction in your property taxes.\n*   **Special-use properties:** If your home is on agricultural property or is used for nonprofit or religious charitable activities, property tax exemptions could apply. END
 TITLE: How to Save Money on Property Taxes CONTENT: Avoid Major Improvements\n------------------------\nIf you know your municipality has scheduled a property revaluation, consider postponing major renovations to your home until after the new assessments have been determined. Repairs such as painting or replacing a roof won't affect assessments, but structural changes such as new decks or patios, outbuildings including sheds, and other additions will likely increase assessed value. END
 TITLE: How to Save Money on Property Taxes CONTENT: The Bottom Line\n---------------\nWhile it can be nerve-wracking to navigate the property tax hikes that accompany rising property values, take comfort in knowing it's a side effect of your home becoming more valuable. If you have a mortgage on the property, your equity stake is likely increasing as well.\nIf you eventually decide to harvest those gains and buy another home—one with more room to grow, perhaps, or maybe a sensible downsize—make sure to spruce up your credit for your next mortgage application as you prep your property for sale, and enjoy the benefits of property appreciation. You can check your Experian credit report and score for free to see where you stand. END
 TITLE: Is a Reverse Mortgage Right for You? CONTENT: A reverse mortgage is self-explanatory in that it does the opposite of a traditional mortgage loan: Instead of borrowing money to buy a house, you can use the equity in your home to secure a loan. In other words, a reverse mortgage can be viewed as one or more advance payments on your home equity.\nThere are three types of reverse mortgages:\n*   **Single-purpose reverse mortgage**: Offered by some state and local government agencies, as well as some nonprofit organizations, these loans are designed for one purpose only—such as paying for property taxes or home improvements—which is specified by the lender. It is possible to qualify for a single-purpose reverse mortgage with low or moderate income.\n*   **Proprietary reverse mortgage**: Backed by the private lenders that offer them, proprietary reverse mortgages don't have the same limits as government-backed loans, so they may be better for homeowners who have a high property value and are looking for a bigger loan advance. These loans can typically be used for any purpose.\n*   **Home Equity Conversion Mortgage (HECM)**: The most common type of reverse mortgage, the HECM is insured by the Federal Housing Administration and can be used for any purpose. However, as of 2019, they are limited to $726,525 and have other requirements that may exclude some homeowners.\nA reverse mortgage is primarily designed for retirement-age people who are looking to access funds to cover living expenses but don't want to sell their home to get it.\nThe money you receive is generally considered tax-free, and you don't have to pay any of it back as long as you remain in the home and pay property taxes, homeowners insurance and overall maintenance of the home.\nWhen you ultimately sell the home, move out or you (and in some circumstances your spouse) die, the loan must be repaid, either by you, your spouse or your estate. If the loan comes due at you or your spouse's death, your heirs may need to sell the home to pay off what your estate owes.\nReverse mortgages typically come with several costs, including a mortgage insurance premium, origination fee, servicing fee and third-party fees. Also, interest will accrue over the life of the loan.\nWith HECMs, for instance, the initial mortgage premium is 2% of the loan amount, and you'll pay an ongoing 0.5% annually. The origination fee will be the greater of $2,500 or 2% of the first $200,000 of your home's value, plus 1% of the amount over $200,000—there's a maximum of $6,000 total. END
 TITLE: Is a Reverse Mortgage Right for You? CONTENT: How a Reverse Mortgage Is Determined\n------------------------------------\nYour loan amount on a mortgage is determined by a number of factors. Depending on the type of reverse mortgage, some criteria may vary by lender, government agency or nonprofit organization.\nFor HECMs, those factors include:\n*   The age of the youngest borrower or non-borrowing eligible spouse\n*   The current market interest rate\n*   The value of the home\n*   The current HECM FHA mortgage limit\nWith an HECM, you can receive your loan money in several ways, including:\n*   A lump-sum disbursement (the only option if you want a fixed interest rate)\n*   Fixed monthly payments for a set period\n*   Fixed monthly payments for as long as you live in the home\n*   A line of credit you can draw upon at any time until you've used it up\n*   A combination of monthly payments and a credit line\nChoosing the right payment option for your situation can be tough. For example, the lump-sum disbursement gives you more upfront but less overall than the other options. Also, you'll likely receive more money getting payments for a set period over the lifetime option because the latter is riskier for the lender.\nIn some cases, however, you may be able to switch your method of payment after the fact for a fee. If you're worried about making the wrong choice, check with your lender to find out your options. END
 TITLE: Is a Reverse Mortgage Right for You? CONTENT: Who Can Qualify for a Reverse Mortgage?\n---------------------------------------\nEligibility criteria for single-purpose and proprietary reverse mortgages vary by lender, but if you're looking for an HECM, the requirements are clear:\n*   All borrowers must be 62 or older\n*   You must own the property outright or have a considerable amount of equity in it\n*   The home must be your primary residence\n*   You can't be delinquent on any federal debt\n*   You have the financial resources to pay ongoing property taxes, homeowners insurance, HOA fees and other necessary expenses\n*   You must visit with an HECM counselor approved by the U.S. Department of Housing and Urban Development (HUD)\n*   You must be creditworthy and meet other financial requirements\n*   The property meets all FHA standards and flood requirements\nAlso, the property must be a single-family home, a two- to four-unit home with one unit occupied by you, an HUD-approved condominium project, or a manufactured home that meets FHA requirements.\nIf one spouse is not yet 62 years old, they can't be included as a borrower on the loan. However, they may still be eligible to stay in the home after the borrowing spouse dies without further payments. Also, there is an option to refinance a reverse mortgage after the non-borrowing spouse turns 62 to ensure ongoing payments after the older spouse dies. END
 TITLE: Is a Reverse Mortgage Right for You? CONTENT: When a Reverse Mortgage Is a Good Option\n----------------------------------------\nFor homeowners who qualify, there are a few situations where a reverse mortgage might be worth considering.\n*   **It can help solve financial problems.** Even if you don't have a mortgage payment, retirement can be expensive. Average health care expenses alone for a retired couple amount to $285,000, according to Fidelity Investments, and that's not including long-term care. Through a lump-sum payment or ongoing monthly payments, a reverse mortgage can provide retired homeowners with some extra cash flow to help stay afloat financially.\n*   **You can't afford a monthly payment.** Another way to gain access to your home's equity is through a home equity loan or line of credit. If you need cash but can't afford a monthly payment, however, those may not be good options.\nOn the flip side, a reverse mortgage won't require you to make monthly payments on the debt you've incurred. You will, however, still be required to pay your property taxes, your homeowners insurance premiums and any other ongoing expense the lender requires.\n*   **You're not looking to maximize the value of your estate.** If you and your spouse—if they're also a borrower or an eligible non-borrowing spouse—die, payment on the loan will come due, and your estate will need to settle the amount owed. This often means that your loved ones will need to sell the home to pay off the loan, leaving them without that amount as part of their inheritance. If that's something you want to avoid, a reverse mortgage may not be for you. But if providing a large inheritance isn't in your game plan, a reverse mortgage is worth considering. END
 TITLE: Is a Reverse Mortgage Right for You? CONTENT: When It Might Not Be a Good Idea\n--------------------------------\nWhile there are some clear situations where it's worth thinking about a reverse mortgage, in some circumstances it won't make sense at all.\n*   **You're planning to move relatively soon.** If you're not planning to stay in your home for the long term, it may not make sense to get a reverse mortgage because the loan will come due as soon as you move out. Depending on how you've used the money you've received so far, it could be difficult to pay it back. As such, reverse mortgages are best for homeowners who plan to stay in the house for a long time.\n*   **You can't afford upfront and ongoing costs.** If you're struggling to get by financially, paying high closing costs and the ongoing expenses of maintaining the property and paying taxes and insurance may be too much. If the lender notices that you're falling behind, it could require you to pay back the loan immediately.\n*   **You want to leave the home to your children.** If you want your heirs to take over your home after you die, either to live there or to sell it and take the profit, a reverse mortgage will make that difficult to manage. That's especially the case if your estate doesn't have enough assets from other sources to pay back the loan and your children are forced to sell it to pay the debt. END
 TITLE: Is a Reverse Mortgage Right for You? CONTENT: How Credit History Affects a Reverse Mortgage\n---------------------------------------------\nThere is no minimum credit score requirement for a reverse mortgage, primarily because the main thing lenders want to know is whether you can handle the ongoing expenses required to maintain the house.\nLenders will, however, look to see if you're delinquent on any federal debt. Also, if your credit history shows that you have a habit of not making payments or defaulting on debt, you may be required to set up what's called a Life Expectancy Set Aside (LESA).\nA LESA is essentially an account where you set aside a certain amount to cover property taxes and insurance costs, which the lender can use if you stop paying them. How much you'll need to deposit into a LESA is based on your credit and income, monthly property tax and insurance costs, and the life expectancy of the youngest borrower.\nBefore you start the application process for a reverse mortgage, get a copy of your credit report and score and look for anything that might make it difficult to get approved without a LESA. Address those issues, if possible. If you can't, look at your assets to determine whether you can afford a LESA or if you're better off looking into other alternatives. END
 TITLE: Is a Reverse Mortgage Right for You? CONTENT: Avoid Making a Rash Decision About Your Home\n--------------------------------------------\nYour house may be one of the most valuable assets you own. So while there are many appealing features of a reverse mortgage, it's crucial that you take a considerable amount of time to determine whether it's the best option for you.\nBecause your heirs will be affected, it may also be worth talking with them about it, keeping in mind that you'll ultimately make the final decision on the matter.\nAnd whether or not you're planning to get an HECM, consider working with an HECM counselor to make sure you understand all of the effects a reverse mortgage can have on you based on your situation. END
 TITLE: How Living Trusts Can Safeguard Your Assets CONTENT: How Does a Living Trust Work?\n-----------------------------\nThere are two basic types of living trusts: revocable and irrevocable. Both allow you to assign your property to specific heirs or organizations. When you die, the property will go to them as instructed. In this way, living trusts are similar to wills. Yet instead of the property going through probate court, which can be expensive and time-consuming, the trustee you assign will simply distribute the assets according to your wishes. The process can be resolved in just a few weeks, as opposed to a will which can take months or even years to resolve.\nHere's what you should know about the two main types of trusts:\n*   **Revocable trust**: A revocable trust allows you change it as often as you like before you die. While you're alive, everything in the trust is considered your personal property. When you die, the assets in the trust are considered part of your estate, and the successor trustee you assigned controls distribution. The trust ceases to exist after everything has been given away. Its primary purpose is to avoid probate court, since revocable living trusts do not reduce estate taxes.  \n    With a revocable trust, your assets will not be protected from creditors looking to sue. That's because you maintain ownership of the trust while you're alive. Therefore if you lose a lawsuit and a judgment is awarded to the creditor, the trust may have to be closed and the money handed over.\n*   **Irrevocable trust**: With an irrevocable trust, nothing can be changed after you sign it. At that point, everything listed becomes the property of the trust. The assets are no longer yours, so you will not be subject to estate taxes. Additionally, the assets placed in an irrevocable trust cannot be pursued by creditors seeking payment of debt. If an irrevocable trust was signed with the intention of defrauding creditors, however, legal repercussions may be enforced. There are several varieties of irrevocable trusts, including types specialized for life insurance payouts or funeral costs.  \n    With this kind of trust, assets are more protected from creditors. Since all property in it is no longer yours, a judgment creditor can't force you to close the trust to reconcile an amount due. An exception to this rule is if fraud was involved. If you used the trust to illegally escape paying your bills, that trust may not be as airtight as you think. END
 TITLE: How Living Trusts Can Safeguard Your Assets CONTENT: How Assets and Debt Are Handled After Death\n-------------------------------------------\nAfter your death, the successor trustee takes over. It's a big job. That person will distribute the assets in the trust, but will first have to satisfy any outstanding debts, such as taxes, collection accounts and credit card bills. He or she will have to identify all the creditors, prepare income and estate tax returns and pay any ongoing bills. If more money is needed to pay off the creditors, the trustee may have to raise it by liquidating accounts or selling property.\nThe distribution of assets also requires considerable effort. Bank and investment accounts will be straightforward, but property such as real estate, cars, jewelry and artwork is more complicated, as it will need to be professionally appraised for its date-of-death value. To obtain those written appraisals, the trustee may first have to get an affidavit that proves his or her authority.\nDuring this time, the trustee will keep the beneficiaries up to speed on what's going on, and then will start to transfer the assets. Bank and investment accounts will be passed to the named beneficiaries. Any property that has a title, such as homes and vehicles, will require the trustee to prepare and sign a new title document to transfer ownership to the beneficiary. For items such as jewelry and furniture, it's a matter of handing it over or arranging for the beneficiaries to pick them up, an exchange that will require a signed receipt. END
 TITLE: How Living Trusts Can Safeguard Your Assets CONTENT: Can a Living Trust Affect Your Credit?\n--------------------------------------\nEvidence of a living trust will be absent from your credit report, so it will have no impact on your credit history or credit scores. However, as with virtually all financial decisions, there could be an indirect effect.\nFor example, if you want to apply for a loan or buy a home, you'll be listing your assets. Lenders will want to know what you have in reserve because it helps them to assess risk. If you have a revocable trust, the lender knows that the assets in the trust are available in the event that you default. That reduces their risk. On the other hand, if a large portion of your assets are tied up in an irrevocable trust, lenders have no claim to that property, so you won't be able to list it as an asset. That may hurt your ability to qualify for the credit product you want.\nThe bottom line: Living trusts are designed to help your heirs receive the amount you want them to have, with few extra costs and without unnecessary hold-ups. You can be sure they get the amount you intend by paying off your debts before you pass on. END
 TITLE: Do Credit Card Rewards Expire? CONTENT: Which Credit Cards Rewards Expire?\n----------------------------------\nIt might surprise you to learn that some credit card rewards expire, but it's usually only under certain circumstances. First, consider the type of rewards your credit card earns: Are they airline miles, hotel points, cash back or points with an individual issuer like Amex or Chase? Once you sort that out, it should be easy to find the rules specific to each program. END
 TITLE: Do Credit Card Rewards Expire? CONTENT: What Happens if You Close Your Card?\n------------------------------------\nClosing your credit card can, but does not necessarily, mean losing all of your points. If points are lost, the questions then become: What will happen, exactly? And when?\n*   **Immediate expiration**: Closing certain credit cards means losing your rewards at the same time. For example, if you close your Capital One Venture Rewards Credit Card, or Capital One Quicksilver Cash Rewards Credit Card, any rewards remaining in your account disappear right upon cancellation.\n*   **Expiration after a certain period of time**: Some issuers give cardholders a window of time after voluntarily closing an account during which they can use their rewards. For example, if you cancel a Chase Freedom Unlimited® card, you should have 30 days to redeem your Ultimate Rewards points for cash back or other rewards.\nOr:\n*   **Your rewards might be automatically credited to your account**: If deadlines aren't your thing, some cards will automatically credited rewards to your account when the account closed or if it hasn't been used it in a while. Even if it slips your mind or you start using other rewards cards more, you don't have to worry about losing your cash back rewards. Different cards will have specific scenarios where this can happen, so be sure to read the fine print to understand how and when rewards would be automatically redeemed.\nThe timing and sequence of events when you cancel a card will depend on the loyalty program with which it earns points, the issuer's rules, and even the terms particular to individual cards. If you read your benefits guide and still don't know what will happen when you cancel your card, your best bet is simply to call your issuer's customer service line directly and ask. END
 TITLE: Do Credit Card Rewards Expire? CONTENT: How to Avoid Losing Your Credit Card Rewards\n--------------------------------------------\nIt would be a shame to spend years racking up rewards only to see them go up in smoke. Here's how you can stop that from taking place.\n*   **Keep your account open and in good standing.** As you've probably noticed by now, the simplest way to keep your credit card rewards from expiring is simply to keep your credit card open and in good standing by making your payments on time. With airline and hotel cards, specifically, using the card and earning more points will reset the expiration date on your points or miles per each program's rules, so making small purchases with them is a great way to keep your rewards active in general.\n*   **Combine your points with another account.** If you plan to close your card, you might be able to transfer your points to another rewards account you have with the same program, or share them with someone in your household who has an open and active account. This option varies from program to program, so you'll need to check what's possible with your specific cards.\n*   **Downgrade to another card.** Rather than canceling your account altogether, consider what's called \"downgrading\" to a related credit card with a lower annual fee.\n*   **Transfer points to partners.** Some credit card rewards programs allow members to transfer their points to partner airlines and hotels. Chase Ultimate Rewards points, for example, convert to miles with United and Virgin Atlantic, among other airlines, as well as points with Marriott Bonvoy, World of Hyatt and IHG Rewards Club. Transferring your Chase points to one of them is a great way to get them out of your Ultimate Rewards account before closing a card, and will also reset any expiration clocks that those individual airline or hotel programs have.\nWhether you have a card that earns cash back, hotel points, airline miles or rewards you can put toward travel and other redemptions, you don't want to lose them unexpectedly if they expire or you close your account. Luckily, it's easy to keep your credit card rewards alive by making sure your accounts are open and in good standing, and keeping any important dates in mind. If you decide to close your rewards credit card, examine all your options before pulling the trigger, and make sure your points are safe before doing so. To find rewards credit cards that meet your needs, you can see options matched to your credit profile when you use Experian CreditMatch™.\n_All information about the Wells Fargo Propel American Express® Card, Wells Fargo Rewards® Card has been collected independently by Experian and has not been reviewed or provided by the issuer of the card._ END
 TITLE: How to Get TSA Precheck for Free CONTENT: What Is TSA Precheck?\n---------------------\nTSA Precheck is a U.S. government program that was launched in 2013 for travelers the Transportation Security Administration deems to be low risk. It currently counts over 10 million members. Travelers with Precheck who are flying on one of 73 participating airlines can use expedited security lines at over 200 major airports across the U.S.\nDuring security screening, Precheck travelers generally don't have to remove their belts or shoes, or take laptops and liquids of approved sizes out of their carry-on bags. According to the most recent information from the TSA, 92% of travelers with Precheck spent under five minutes in security lines at airports. END
 TITLE: How to Get TSA Precheck for Free CONTENT: How Do You Apply for TSA Precheck?\n----------------------------------\nTo be accepted into the TSA Precheck program, you must submit an online application with information including your physical characteristics, criminal history, and the date and location of your birth. Once you complete the application, which should only take a few minutes, the TSA will then perform a background check on you. You can check the status of your application online, and once you're conditionally approved, you can schedule an appointment at one of the over 380 enrollment centers around the country.\nBring a few forms of identification along to your interview from the list the TSA provides, such as a valid U.S. passport or driver's license. A TSA officer will ask you questions to verify your identity and the information you provided with your application, fingerprint you, and then charge the non-refundable $85 application fee. While most applicants are notified of the outcome within a few days, it can take several weeks to receive final, written notification. In the meantime you can check your status online and find out your Known Traveler Number if you are approved. Once you have that information, be sure to enter it into all your airline frequent-flier account profile pages so that you are designated as a TSA Precheck passenger automatically when you check in for your next flight.\nTSA Precheck membership lasts for five years, though you can renew your membership online up to six months before your current status expires. Each time you renew, you have to pay the $85 fee again. The good news is, there are a few ways to get TSA Precheck for free or at a discount.\nCertain active members of the U.S. Armed Forces can use TSA Precheck by entering their Department of Defense ID number from the back of their common access card into the Known Traveler Number field on their flight reservation. Department of Defense federal civilians are eligible to participate via a program called Mile Connect.\nFor the rest of us, though, over a dozen travel credit cards currently available offer a statement credit to cover the cost of a TSA Precheck application once every four or five years. So if you already carry one of them, or intend to open one, you might be able to use it to get the $85 fee taken off your tab. END
 TITLE: How to Get TSA Precheck for Free CONTENT: Which Cards Should You Use for TSA Precheck?\n--------------------------------------------\nHere are some of the best travel rewards credit cards that include a TSA Precheck application fee statement credit perk. Keep in mind, cardholders usually have a choice of using such a benefit for either a TSA Precheck or Global Entry application once every few years, but not both. So if you already used your card to apply for Global Entry, you might not be eligible for a TSA Precheck application fee credit for a while. That said, many people who participate in Global Entry also receive TSA Precheck privileges when traveling, so it might be worth just applying for Global Entry instead.\nWith that in mind, here are some of the best travel rewards credit cards that cover the cost of a TSA Precheck application.\n**Chase Sapphire Reserve®**: Cardholders are eligible for a statement credit once every four years as a reimbursement for the TSA Precheck application fee when charged to their card. Cardholders can also take advantage of up to $300 in annual travel statement credits, access to over 1,000 airport lounges around the world, and earn 3 Chase Ultimate Rewards points per dollar on dining and travel purchases, and 10 points per dollar on Lyft rides through March 2022. Annual fee: $550.\n#### Chase Sapphire Reserve®\nApply\non Chase's website\n#### Chase Sapphire Reserve®\n**APR**\n16.99%-23.99% Variable\n**Intro APR:** N\/A\n**Rewards**\n3X points on Travel & Dining\n1X points on All Other Purchases\n**Intro Bonus**\nEarn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening.\n**IHG® Rewards Club Premier Credit Card**: This hotel credit card also comes with a TSA Precheck benefit. Cardholders who charge the application fee to their card are eligible for a statement credit toward it up to once every four years. They also earn up to 25 points per dollar on purchases at IHG hotels (which include Holiday Inn and Intercontinental, among other brands); 2 points per dollar at gas stations, grocery stores and restaurants; and 1 point per dollar everywhere else. Annual fee: $89.\n**UnitedSM Explorer Card**: Among the best credit cards for frequent fliers, this card will issue a statement credit up to once every four years for a TSA Precheck application fee. The card earns 2 bonus United miles per dollar on eligible United purchases as well as at restaurants, and on hotel accommodations purchased directly from hotels. All other eligible purchases earn 1 point per dollar. Annual fee: $95, waived the first year.\n**Bank of America® Premium Rewards® credit card**: Cardholders are eligible for a TSA Precheck application fee refund once every four years. They also get up to $100 in statement credits toward airline incidental fees each year on qualifying purchases like baggage charges and upgrades. Annual fee: $95.\nMany other travel rewards credit cards also offer TSA Precheck (or Global Entry) application fee statement credits. Before you apply, check your credit cards to see if any of them include such a perk. If you do not currently have one that does, think about applying for a new card that will cover the cost, since getting up to $85 in value (or $100 for Global Entry) might well be worth opening a new account, as is all the time you will save in airport security lines.\nLooking for other travel rewards credit cards? Find out about more options through Experian CreditMatch™.\n_All information about the IHG® Rewards Club Premier Credit Card, UnitedSM Explorer Card, and Bank of America® Premium Rewards® credit card has been collected independently by Experian and has not been reviewed or provided by the issuer of the card._ END
 TITLE: How to Get TSA Precheck for Free CONTENT: **Chase Sapphire Reserve®**: Cardholders are eligible for a statement credit once every four years as a reimbursement for the TSA Precheck application fee when charged to their card. Cardholders can also take advantage of up to $300 in annual travel statement credits, access to over 1,000 airport lounges around the world, and earn 3 Chase Ultimate Rewards points per dollar on dining and travel purchases, and 10 points per dollar on Lyft rides through March 2022. Annual fee: $550.\n#### Chase Sapphire Reserve®\nApply\non Chase's website\n#### Chase Sapphire Reserve®\n**APR**\n16.99%-23.99% Variable\n**Intro APR:** N\/A\n**Rewards**\n3X points on Travel & Dining\n1X points on All Other Purchases\n**Intro Bonus**\nEarn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. END
 TITLE: What Is the Difference Between TSA Precheck and Global Entry? CONTENT: TSA Precheck was launched in 2013 and allows travelers who are deemed low-risk by the Transportation Security Administration to use expedited security lines at certain airports.\nPassengers with TSA Precheck can leave laptops and liquids (in approved containers) in their bags, and do not have to remove their shoes or belts when going through airport security. Travelers can now find TSA Precheck lanes at over 200 airports across the U.S., and a total of 73 airlines currently participate in the program.\nAccording to the TSA, 94% of travelers who use TSA Precheck lanes experience wait times of five minutes or less. That's a lot of time saved, especially when the TSA considers the normal average wait time to be 30 minutes, and even longer during peak travel times.\n**Eligibility**: You must be a U.S. citizen, U.S. national or legal permanent resident of the United States to be eligible for TSA Precheck. There are no age requirements, but children 12 and under can use Precheck lanes when traveling with a parent or guardian who is a member.\n**Applying**: If you meet those requirements, you can fill out an [online application](;service=pre-enroll), which asks for personal information like your date and location of birth, current address, height, weight and eye color, among other questions. If you are conditionally approved, you will then need to schedule an in-person interview at one of the nearly 400 enrollment centers, many of which are located at airports. Time slots fill up fast, so be sure to book yours as soon as possible.\nThe interview itself should only take a few minutes. During the interview, a TSA agent will verify your information and require you to pay the $85 application fee, which you can do using credit card, debit card, money order, certified or cashiers check, or company check. After that, you will be notified in writing of your result, and if accepted, you will receive a Known Traveler Number.\n**Registering with airlines**: Even after you are approved for TSA Precheck, you will not automatically get to use the designated security lanes when flying. You must first register your Known Traveler Number with any airlines you fly by logging into your frequent-flier accounts and adding it to your traveler profile. If it works, you should see the TSA Precheck logo on your boarding pass when you check in. If you do not, you can ask an airline agent at the airport to add your Known Traveler Number to your reservation.\n**Expiration and renewal**: TSA Precheck membership is valid for five years. You can renew your membership online up to six months before it expires. You will have to pay the $85 application fee again and may be required to complete another in-person interview. END
 TITLE: What Is the Difference Between TSA Precheck and Global Entry? CONTENT: What Is Global Entry?\n---------------------\nGlobal Entry is a U.S. Customs and Border Protection (CBP) program that allows travelers the U.S. government designates as low risk to use automated immigrations kiosks and expedited customs lines when returning to the U.S. from abroad. It is currently available at over 70 airports in the U.S. and a few international airports such as Abu Dhabi International and Toronto Pearson.\n**Eligibility**: You can apply for Global Entry if you are a U.S. citizen, a lawful permanent U.S. resident, or a citizen from a list of other approved countries that includes Argentina, Germany, Mexico, Singapore and Switzerland, among others.\n**Applying**: To apply for Global Entry, you must create a Trusted Traveler Program (TTP) profile online. Then you can fill out an online application, which will ask for information on where you have lived and traveled in the last five years, any criminal history and your physical characteristics. Applicants must pay a non-refundable $100 application fee at this point.\nIf you are conditionally approved, your next step will be to set up an in-person interview at one of the CBP's enrollment centers, many of which are at airports and border crossings. You can also enroll upon arrival at some facilities if you are traveling abroad. At your interview, you will be asked to verify your application information and present your valid passport and another form of identification with a proof of address, like a valid driver's license. The interview usually takes around 15 minutes, and if you are approved, you should get a Known Traveler Number at that point.\n**Expiration and renewal**: Global Entry is good for five years, but you can renew it starting up to a year before expiration. You will need to reconfirm or update your personal information and then pay the $100 application fee again. At the moment, New York residents are not being approved for new or renewed membership. END
 TITLE: What Is the Difference Between TSA Precheck and Global Entry? CONTENT: Which One Should You Get?\n-------------------------\nYou might think that if you only travel domestically, you would be better off just applying for TSA Precheck because it only costs $85 compared with $100 for Global Entry. However, the Global Entry program includes access to TSA Precheck benefits. So you might as well apply for Global Entry to get both expedited security screening and customs and immigration processing, especially if your credit card provides a statement credit that covers the application fee for either program. END
 TITLE: What Is the Difference Between TSA Precheck and Global Entry? CONTENT: Use a Credit Card to Get TSA Precheck or Global Entry Application Fee Credit\n----------------------------------------------------------------------------\nIt costs $85 to apply for TSA Precheck and $100 to apply for Global Entry, regardless of whether you're ultimately approved. However, several travel rewards credit card issuers will issue a statement credit of up to $100 that covers the cost of applying for either program once every four or five years when you use your card to pay.\nAmong the popular products that include such a benefit are the Chase Sapphire Reserve® and the Capital One Venture Rewards Credit Card.\nTSA Precheck saves travelers time and stress by giving them access to expedited airport security lanes. Global Entry is a great way to get through customs and immigration faster when entering the U.S. If you are trying to decide which of these two programs to apply for, consider going for Global Entry since members usually get TSA Precheck access, too, and there are several great travel rewards credit cards that will cover the $100 application fee. END
 TITLE: What Is a Preferred Credit Card? CONTENT: How Do Preferred Credit Cards Work?\n-----------------------------------\nIf your credit isn't in ideal shape, you may only qualify for a credit card that doesn't have any bells and whistles, or you may be eligible for a simple cash back card that provides a low, flat earnings rate. If your credit score is considered low, you may only be able to get approved for a secured credit card that requires you to put down a security deposit and provides few perks beyond helping you to build or improve your credit.\nFor customers with good to excellent credit, however, some credit card companies offer preferred cards that provide more premium reward offerings and better benefits. These cards aren't strictly defined, but they may offer benefits like travel-related perks, increased rewards earnings or additional cardholder protections. The cards may also come with shopping benefits such as extended warranties and price protection. These benefits may come at a cost, however, in the form of annual fees, which can negate some of the card's benefits. END
 TITLE: What Is a Preferred Credit Card? CONTENT: What Is the Difference Between Preferred and Platinum Credit Cards?\n-------------------------------------------------------------------\nCredit card issuers use different card names to mean various things, and there aren't any hard-and-fast rules about what preferred or platinum means when attached to a given credit card. Sometimes, card issuers use words like Gold, World, Premier, Priority or Premium to communicate that these cards are of a higher tier and geared toward those with solid credit.\nWith some card issuers, a platinum credit card is of a higher echelon in terms of qualification requirements and benefits than a standard card. Like a preferred card, the rewards programs and benefit offerings provided by a platinum card may be more robust, with elite status, freebies like checked bags, and other perks. Still other issuers may use the platinum moniker more loosely, applying it to standard cards with unremarkable cardholder benefits.\nPlatinum and preferred may differ when cards carrying those labels are offered by the same card issuer. Let's look at three American Express credit cards and what they offer, for example. The Blue Cash Preferred® Card from American Express has an annual fee of $95 (after an introductory annual fee of $0 for the first year). The the Amex EveryDay® Preferred Credit Card has a $95 annual fee, while The Platinum Card® from American Express costs a whopping $550 per year. But The Platinum Card® from American Express also has a higher potential introductory offer, and provides access to certain airport lounges. Additionally, it works differently than traditional credit cards, and allows only certain charges to be carried from one month to the next, not all. Terms apply to American Express offers. Unless you're a very frequent traveler, a premium credit card may not be worth the high cost. END
 TITLE: What Is a Preferred Credit Card? CONTENT: Best Preferred Credit Card Options\n----------------------------------\nThere are plenty of preferred credit cards to choose from, each with varying benefits and terms. Here's an example of a preferred credit card that has some appealing features:\n*   Chase Sapphire Preferred® Card: This card is good for those seeking travel rewards they can put toward trips. While it charges a $95 annual fee, it also has a robust rewards program and large introductory bonus and offers many premium benefits such as purchase protection and trip or baggage delay insurance. Cardholders earn 3 points per dollar spent on dining, 2 points per dollar spent on travel, and 1 point per dollar on all other eligible purchases. Points can be redeemed for statement credits at a rate of 1 cent apiece, or at a slightly higher rate through the Chase Ultimate Rewards portal, where you'll find a variety of rewards, including flights and hotels. This card doesn't charge foreign transaction fees, which is ideal for international travelers. END
 TITLE: What Is a Preferred Credit Card? CONTENT: *   Chase Sapphire Preferred® Card: This card is good for those seeking travel rewards they can put toward trips. While it charges a $95 annual fee, it also has a robust rewards program and large introductory bonus and offers many premium benefits such as purchase protection and trip or baggage delay insurance. Cardholders earn 3 points per dollar spent on dining, 2 points per dollar spent on travel, and 1 point per dollar on all other eligible purchases. Points can be redeemed for statement credits at a rate of 1 cent apiece, or at a slightly higher rate through the Chase Ultimate Rewards portal, where you'll find a variety of rewards, including flights and hotels. This card doesn't charge foreign transaction fees, which is ideal for international travelers. END
 TITLE: What Is a Preferred Credit Card? CONTENT: Get Custom Credit Card Offers\n-----------------------------\nNot sure which type of credit card your credit score can get you? Try Experian CreditMatch™ for free and get quickly matched with personalized credit card offers. It won't affect your credit and can help you compare offers from many card issuers. END
 TITLE: How to Maximize Hotel Credit Cards CONTENT: Earn and Redeem Points Where You Actually Stay\n----------------------------------------------\nBefore you settle on a particular hotel credit card, make sure it earns points and offers perks at the hotels where you actually stay. You wouldn't want to earn a stash of World of Hyatt points if you usually only stay at Hilton properties, for example. As you begin to focus on getting a hotel credit card, think about which chains you visit most and where you want to use the points you earn for reward stays.\nThe good news is, the major hotel companies all include a lot of brands these days. For instance, Marriott now comprises 30 brands ranging from luxurious Ritz-Carlton hotels to mid-range Sheraton and budget-friendly Residence Inn locations. The Hilton brand includes some familiar names including Waldorf Astoria, Conrad, DoubleTree and Embassy Suites. So you should be able to find places to stay no matter which company you eventually settle on. END
 TITLE: How to Maximize Hotel Credit Cards CONTENT: A Good Introductory Offer\n-------------------------\nLike other rewards credit cards, many hotel cards offer what is known as a welcome offer when you open a new account. These offers are usually worth tens of thousands of points, which is typically enough for one or more reward nights. To earn them, you usually have to meet certain spending requirements within a specific period of time.\nFor example, the Hilton Honors American Express Surpass® Card for a limited time is offering 130,000 Hilton Honors bonus points after you spend $2,000 in purchases on the Hilton Honors American Express Surpass® Card in the first 3 months of card membership. Plus, you can earn an additional 50,000 Hilton Honors bonus points after you spend a total of $10,000 in purchases on the card in the first 6 months. Terms apply.\nWhen it comes to choosing your new hotel credit card, look for a good welcome offer with as many bonus points as possible. Just be sure you can meet the spending requirements without overextending your finances; otherwise, you might resort to carrying a balance that could wipe out the value you receive from the points you earn with late fees and interest charges. END
 TITLE: How to Maximize Hotel Credit Cards CONTENT: Great Bonus Categories\n----------------------\nMany hotel credit cards earn bonus points in a variety of spending categories, not just when you pay for stays at partner hotels. That means you can quickly rack up points for reward nights by using the card to pay for things like meals and grocery shopping. But it pays to think about cards that earn bonus points at specific merchants, and then picking the one that will rack up the most at the places where you tend to spend the most money.\nFor instance, the Hilton Honors American Express Surpass® Card earns 12 Hilton Honors bonus points per dollar on eligible purchases made directly with hotels and resorts within the Hilton portfolio. However, it also accrues 6 points per dollar at U.S. restaurants, U.S. supermarkets and U.S. gas stations. It earns 3 points per dollar on all other eligible purchases.\nThe World of Hyatt Credit Card from Chase, meanwhile, earns 4 bonus points per dollar on purchases at Hyatt hotels, then 2 points per dollar at restaurants and on airline tickets purchased directly from airlines, on local transit and commuting, and on fitness club and gym memberships. It earns 1 point per dollar on all other eligible purchases.\nIf you tend to spend more on groceries and gas, the Hilton card is probably a better choice for you. But if you buy a lot of airline tickets, dine out frequently and use rideshare services or mass transit, you might get more bang for your buck from the Hyatt card. Any hotel credit card you open should earn bonus points on a variety of purchases, and especially on the ones you would use your card for the most. END
 TITLE: How to Maximize Hotel Credit Cards CONTENT: Annual Reward Nights\n--------------------\nSome of the best hotel credit cards give cardholders either an automatic reward night or the opportunity to earn one through spending, every year. For example, folks with the high-end Hilton Honors American Express Aspire Card receive one weekend night reward when they open their card, and one every year after renewal and annual fee payment. They can earn an additional weekend night reward after spending $60,000 or more on purchases with their card in a calendar year. These reward nights are typically valid for Friday, Saturday or Sunday stays in standard accommodations at most Hilton properties around the world, including pricier locations such as the Waldorf Astoria Los Cabos Pedregal in Mexico. Terms apply.\nAmong the other hotel credit cards that offer some kind of automatic annual anniversary reward night perk are the World of Hyatt Credit Card, the IHG® Rewards Club Premier Credit Card, the Marriott Bonvoy Brilliant™ American Express® Card and the Marriott Bonvoy Boundless™ credit card from Chase. END
 TITLE: How to Maximize Hotel Credit Cards CONTENT: Travel Statement Credits\n------------------------\nSome of the more premium hotel credit cards offer statement credits for a variety of purchases. The Hilton Honors American Express Aspire Card is one of the most generous in this respect. Cardholders can enjoy up to $250 in statement credits each card membership year toward eligible purchase made directly with participating Hilton Resorts, plus up to another $250 in statement credits each calendar year for incidental fees such as checked baggage and in-flight refreshments on a qualifying airline that the cardholder designates. When they use their card to book a two-night minimum stay through the card's Hilton portal, they also get up to $100 in credits for qualifying charges at participating Waldorf Astoria Hotels & Resorts and Conrad Hotels & Resorts. Terms apply.\nOthers, like the IHG® Rewards Club Premier Credit Card, reimburses cardholders for their Global Entry or TSA Precheck application fee via a statement credit of up to $100 once every four years, which can make getting through the airport a lot faster and easier.\nWhen looking for a hotel credit card, be sure to find one that offers at least some kind of annual statement credit that you can use to save money or time when traveling. If the card requires an annual fee, make sure to factor it in when calculating your potential rewards. END
 TITLE: How to Maximize Hotel Credit Cards CONTENT: Elite Status\n------------\nOne of the standout features of many hotel credit cards is that they offer automatic elite status with their associated hotel loyalty program. That means cardholders can enjoy perks including room upgrades, free Wi-Fi during stays and even complimentary lounge access or breakfast in some cases without having to spend many nights in hotels each year—something that's usually required.\nFor instance, the Hilton Honors American Express Surpass® Card extends complimentary Hilton Honors Gold status to cardholders (and the opportunity to move up to Diamond status by spending $40,000 on eligible purchases on the card in a calendar year). Gold status normally requires spending 40 or more nights (or 75,000 base points) at Hilton properties in a calendar year and confers perks like earning bonus points on stays, space-available room upgrades and complimentary continental breakfast. Depending on how often you stay at Hilton properties, these benefits may add up to hundreds or even thousands of dollars in value each year. In terms of this type of benefit, look for a hotel credit card that offers you a tier of elite status you would not be able to achieve on your own simply through bookings, but that provides perks you will also be able to use often enough to justify paying the card's annual fee. Terms apply. END
 TITLE: How to Maximize Hotel Credit Cards CONTENT: Travel Protections and Savings\n------------------------------\nFinally, remember that these are travel rewards cards, so they should offer some sort of savings and protection when using them to pay for travel expenses. If you frequently travel internationally, it pays to pick up a card that waives foreign transaction fees. Credit card issuers tack these annoying charges (usually ranging from 1% to 3% of every transaction) on to purchases you make abroad, which can really add up over time.\nPaying for trips using a credit card with comprehensive protection can also cover you if things go wrong. The World of Hyatt Credit Card, for instance, offers trip cancellation and interruption insurance with reimbursement of up to $5,000 per trip for prepaid and nonrefundable travel expenses in case your trip must be canceled or cut short for covered reasons like severe weather or sickness. You'll also be covered for lost and delayed bags under certain circumstances and with certain caps. Hopefully, you won't have to invoke any of these protections, but having them available can offer peace of mind when you're away from home. END
 TITLE: How to Maximize Hotel Credit Cards CONTENT: Hotel Rewards Cards Make Valued Travel Companions\n-------------------------------------------------\nHotel credit cards are fantastic for earning points toward reward stays, but many also offer other benefits including travel protections, elite status and annual statement credits or reward nights. That makes hotel credit cards an essential part of anyone's travel strategy. If you are thinking of applying for one, make sure you get the best possible introductory offer with manageable spending requirements, and that the specific card you choose earns bonus points where you tend to make the most purchases. That way, you can rack up the rewards for vacations even faster. END
 TITLE: How to Earn Credit Card Points Fast CONTENT: Find the Right Rewards Card\n---------------------------\nThe key to earning credit card points quickly is to choose a rewards card that earns you the most rewards on the types of purchases you regularly make. But you'll also need to consider what kind of rewards you value most. There are three main types of rewards credit cards. END
 TITLE: How to Earn Credit Card Points Fast CONTENT: The final major family of rewards cards are known as cash back cards. The points or miles you earn with this type of card are usually redeemable for travel or other purchases at a set rate of about 1 cent per point (sometimes less). For example, the Capital One Venture Rewards Credit Card earns 2 miles per dollar spent on every purchase. Those miles can be redeemed for statement credits toward travel purchases at one cent apiece, and for most other purchases at lower rates that can vary. END
 TITLE: How to Earn Credit Card Points Fast CONTENT: Applying for a New Card\n-----------------------\nBefore applying for a rewards credit card, think about your financial picture, which cards you might be eligible for and which ones offer earnings bonuses at the places you shop. Rewards cards tend to require good to excellent credit, so it's a good idea to check your credit score, which you can do for free through Experian, to determine whether your score is within the average range for any card you are thinking about. Here are a few to consider right now. END
 TITLE: How to Earn Credit Card Points Fast CONTENT: **Chase Sapphire Preferred® Card**: Earn 100,000 Chase Ultimate Rewards points after you spend $4,000 on purchases within the first 3 months from account opening. Earn 5 points per dollar on travel purchased through Chase Ultimate Rewards, 3 points per dollar on dining, 2 points per dollar on travel, and 1 point per dollar on all other purchases. You'll also earn 5 points per dollar on Lyft rides through March 2022. The annual fee is $95. END
 TITLE: How to Earn Credit Card Points Fast CONTENT: **Capital One Venture Rewards Credit Card**: You'll earn an unlimited 2 miles per dollar on every purchase with this card. You can also receive a Global Entry or TSA Precheck application fee statement credit for up to $100 once every four years. The card's annual fee is $95. END
 TITLE: How to Earn Credit Card Points Fast CONTENT: **Chase Freedom Unlimited®**: Earn a $200 bonus after you spend $500 on purchases in your first 3 months from account opening. You'll also earn 1.5% cash back on all non bonus category purchases. New cardholders are also eligible for a 0% intro APR for 15 months from account opening on purchases, after which you'll be charged a variable APR of 14.99% to 23.74%, depending on your creditworthiness. There is no annual fee. END
 TITLE: How to Earn Credit Card Points Fast CONTENT: Hit Your Intro Bonus\n--------------------\nOne of the best ways to earn a lot of credit card points fast is to score an introductory bonus, also known as a sign-up bonus. An intro bonus can be anything from tens of thousands of points or miles for award travel to hundreds of dollars in cash back.\nTo earn an introductory bonus, you usually have to meet certain spending requirements. That might be as much as hundreds or thousands of dollars in purchases within a set period of time, like three to six months.\nFor example, the Chase Sapphire Reserve® is currently offering new applicants 60,000 Ultimate Rewards points as its intro bonus. But to earn them, you've got to spend $4,000 on purchases in the first 3 months from account opening. If you don't hit that number, you don't get the bonus points.\nIntroductory bonuses can also vary widely, even for the same card, depending on when you apply. Be sure to read the fine print carefully and make sure you can meet any conditions while still spending responsibly and paying off your balances on time each month. Otherwise, you might be on the hook for interest charges and late fees that will wipe out the value of any points you earn.\nSpend Your Money Strategically\n------------------------------\nTo earn rewards points quickly, think about the kinds of purchases you make each month so you can use the credit cards that will earn you most points or miles for them.\n### Pay Attention to Bonus Categories\nWhile many rewards credit cards earn 1 point or mile per dollar on most purchases, some earn bonus points when you use them to buy things at specific categories of merchants, such as gas stations or grocery stores. By using these cards at the right places, you can double, triple or multiply your earning even faster.\n### Use a Combination of Cards\nCombining a few different rewards credit cards with bonus categories that do not overlap can help you earn bonus points or miles on nearly every single purchase you make.\nFor example, the Chase Sapphire Reserve® earns 10 points per dollar on hotels and car rentals and 5 points on air travel booked through Ultimate Rewards (after earning your annual $300 travel credit), and 3 points per dollar on other travel and dining. It earns 1 point per dollar on almost everything else. By contrast, the Hilton Honors American Express Surpass® Card earns 12 bonus points per dollar on purchases directly with a hotel or resort within the Hilton portfolio. It earns 6 bonus points per dollar at U.S. restaurants, U.S. supermarkets and U.S. gas stations; and 3 points per dollar on everything else. So by using the Chase Sapphire Reserve® card for airfare, general travel and dining, and the Hilton card for Hilton stays, groceries and gas, you could have a winning combo to rake in both Ultimate Rewards points (which are transferable to several airline and hotel loyalty programs) and Hilton Honors points at a pretty good clip.\nUse Your Cards for Everyday Purchases\n-------------------------------------\nAside from maximizing bonus categories, you can earn rewards points even faster simply by using your cards for most of your everyday purchases rather than just occasional buys or large items. A point or mile per dollar here and there adds up quicker than you think.\nUsing a credit card rather than cash or a debit card is not only a great way to accrue rewards faster, but some credit cards offer protections for purchases you make in case something is lost or stolen. Using a card responsibly is also a great way to build your credit history and improve your credit score.\nHow to Use Your Card Responsibly\n--------------------------------\nBefore you whip out your card for every purchase, no matter the price, keep in mind that the rewards you earn will only be worthwhile if you use your card responsibly and are able to make payments on time and in full every month. Not doing could result in late fees and interest charges that will cost much more than the value of any rewards points you earn. Not only that, but over-utilizing your card and amassing a balance that's near your credit limit will be a red flag for lenders. Carrying a high balance can lower your credit score and prevent you from taking advantage of other lucrative credit card offers in the future.\nThe key to earning credit card points fast is to find a card that fits your financial habits and racks up bonus points or miles on the kinds of purchases you make the most, and by spending responsibly on day-to-day expenses. By finding a card that offers bonus-earning opportunities and other benefits you can take advantage of, you can start accruing rewards points faster than you think. You can find personalized credit card options through Experian CreditMatchTM to help you maximize your earning. END
 TITLE: How to Earn Credit Card Points Fast CONTENT: For example, the Chase Sapphire Reserve® is currently offering new applicants 60,000 Ultimate Rewards points as its intro bonus. But to earn them, you've got to spend $4,000 on purchases in the first 3 months from account opening. If you don't hit that number, you don't get the bonus points.\nIntroductory bonuses can also vary widely, even for the same card, depending on when you apply. Be sure to read the fine print carefully and make sure you can meet any conditions while still spending responsibly and paying off your balances on time each month. Otherwise, you might be on the hook for interest charges and late fees that will wipe out the value of any points you earn.\nSpend Your Money Strategically\n------------------------------\nTo earn rewards points quickly, think about the kinds of purchases you make each month so you can use the credit cards that will earn you most points or miles for them.\n### Pay Attention to Bonus Categories\nWhile many rewards credit cards earn 1 point or mile per dollar on most purchases, some earn bonus points when you use them to buy things at specific categories of merchants, such as gas stations or grocery stores. By using these cards at the right places, you can double, triple or multiply your earning even faster.\n### Use a Combination of Cards\nCombining a few different rewards credit cards with bonus categories that do not overlap can help you earn bonus points or miles on nearly every single purchase you make.\nFor example, the Chase Sapphire Reserve® earns 10 points per dollar on hotels and car rentals and 5 points on air travel booked through Ultimate Rewards (after earning your annual $300 travel credit), and 3 points per dollar on other travel and dining. It earns 1 point per dollar on almost everything else. By contrast, the Hilton Honors American Express Surpass® Card earns 12 bonus points per dollar on purchases directly with a hotel or resort within the Hilton portfolio. It earns 6 bonus points per dollar at U.S. restaurants, U.S. supermarkets and U.S. gas stations; and 3 points per dollar on everything else. So by using the Chase Sapphire Reserve® card for airfare, general travel and dining, and the Hilton card for Hilton stays, groceries and gas, you could have a winning combo to rake in both Ultimate Rewards points (which are transferable to several airline and hotel loyalty programs) and Hilton Honors points at a pretty good clip.\nUse Your Cards for Everyday Purchases\n-------------------------------------\nAside from maximizing bonus categories, you can earn rewards points even faster simply by using your cards for most of your everyday purchases rather than just occasional buys or large items. A point or mile per dollar here and there adds up quicker than you think.\nUsing a credit card rather than cash or a debit card is not only a great way to accrue rewards faster, but some credit cards offer protections for purchases you make in case something is lost or stolen. Using a card responsibly is also a great way to build your credit history and improve your credit score.\nHow to Use Your Card Responsibly\n--------------------------------\nBefore you whip out your card for every purchase, no matter the price, keep in mind that the rewards you earn will only be worthwhile if you use your card responsibly and are able to make payments on time and in full every month. Not doing could result in late fees and interest charges that will cost much more than the value of any rewards points you earn. Not only that, but over-utilizing your card and amassing a balance that's near your credit limit will be a red flag for lenders. Carrying a high balance can lower your credit score and prevent you from taking advantage of other lucrative credit card offers in the future.\nThe key to earning credit card points fast is to find a card that fits your financial habits and racks up bonus points or miles on the kinds of purchases you make the most, and by spending responsibly on day-to-day expenses. By finding a card that offers bonus-earning opportunities and other benefits you can take advantage of, you can start accruing rewards points faster than you think. You can find personalized credit card options through Experian CreditMatchTM to help you maximize your earning. END
 TITLE: How to Earn Credit Card Points Fast CONTENT: Introductory bonuses can also vary widely, even for the same card, depending on when you apply. Be sure to read the fine print carefully and make sure you can meet any conditions while still spending responsibly and paying off your balances on time each month. Otherwise, you might be on the hook for interest charges and late fees that will wipe out the value of any points you earn. END
 TITLE: How to Earn Credit Card Points Fast CONTENT: Spend Your Money Strategically\n------------------------------\nTo earn rewards points quickly, think about the kinds of purchases you make each month so you can use the credit cards that will earn you most points or miles for them. END
 TITLE: How to Earn Credit Card Points Fast CONTENT: For example, the Chase Sapphire Reserve® earns 10 points per dollar on hotels and car rentals and 5 points on air travel booked through Ultimate Rewards (after earning your annual $300 travel credit), and 3 points per dollar on other travel and dining. It earns 1 point per dollar on almost everything else. By contrast, the Hilton Honors American Express Surpass® Card earns 12 bonus points per dollar on purchases directly with a hotel or resort within the Hilton portfolio. It earns 6 bonus points per dollar at U.S. restaurants, U.S. supermarkets and U.S. gas stations; and 3 points per dollar on everything else. So by using the Chase Sapphire Reserve® card for airfare, general travel and dining, and the Hilton card for Hilton stays, groceries and gas, you could have a winning combo to rake in both Ultimate Rewards points (which are transferable to several airline and hotel loyalty programs) and Hilton Honors points at a pretty good clip. END
 TITLE: How to Earn Credit Card Points Fast CONTENT: Use Your Cards for Everyday Purchases\n-------------------------------------\nAside from maximizing bonus categories, you can earn rewards points even faster simply by using your cards for most of your everyday purchases rather than just occasional buys or large items. A point or mile per dollar here and there adds up quicker than you think.\nUsing a credit card rather than cash or a debit card is not only a great way to accrue rewards faster, but some credit cards offer protections for purchases you make in case something is lost or stolen. Using a card responsibly is also a great way to build your credit history and improve your credit score. END
 TITLE: How to Earn Credit Card Points Fast CONTENT: How to Use Your Card Responsibly\n--------------------------------\nBefore you whip out your card for every purchase, no matter the price, keep in mind that the rewards you earn will only be worthwhile if you use your card responsibly and are able to make payments on time and in full every month. Not doing could result in late fees and interest charges that will cost much more than the value of any rewards points you earn. Not only that, but over-utilizing your card and amassing a balance that's near your credit limit will be a red flag for lenders. Carrying a high balance can lower your credit score and prevent you from taking advantage of other lucrative credit card offers in the future.\nThe key to earning credit card points fast is to find a card that fits your financial habits and racks up bonus points or miles on the kinds of purchases you make the most, and by spending responsibly on day-to-day expenses. By finding a card that offers bonus-earning opportunities and other benefits you can take advantage of, you can start accruing rewards points faster than you think. You can find personalized credit card options through Experian CreditMatchTM to help you maximize your earning. END
 TITLE: Which Credit Cards Offer Concierge Services? CONTENT: Credit card concierge services are offered either by a credit card issuer, like Citi or Chase, or by a credit card network, such as Visa or Mastercard. These services are included as part of the perks packages of premium credit cards with annual fees that are on the pricier side.\nIt's a good bet that if you have a high-end card, like a World Elite Mastercard® or a Visa Signature or Visa Infinite, as opposed to a regular Mastercard or Visa, that you have access to a concierge service. But it's not a guarantee. To find out for sure, check with your bank about your specific cards to see what services might be available to you. In the meantime, here are four of the best rewards credit cards currently available that include concierge service for members.\n**Chase Sapphire Preferred® Card**: One of the top all-around rewards cards, the Chase Sapphire Preferred® Card is a Visa Signature card, so cardholders can take advantage of complimentary concierge services through Visa. Among the tasks they can help with are making travel plans and finding personalized gifts at local stores. This card has a $95 annual fee and is currently offering new cardholders up to 100,000 bonus Ultimate Rewards points after spending $4,000 on eligible purchases in the first 3 months from account opening.\n**Capital One Venture Rewards Credit Card**: Another Visa Signature product, the services offered through this card are pretty much identical to those extended by the Chase Sapphire Preferred® Card. Like that card, this one also has a $95 annual fee. It is currently offering applicants up to 60,000 bonus miles after spending $3,000 on purchases within 3 months from account opening.\n**The Platinum Card® from American Express**: Among the premium cards for which Amex offers concierge service is this perks-packed standout. It is currently offering new cardholders 100,000 Membership Rewards points after they use their card to make $6,000 in eligible purchases in their first 6 months. Among time-saving services its concierges offer are assistance with transportation and travel bookings, finding tickets to live events, making restaurant and hotel recommendations and reservations, and providing emergency assistance if something goes wrong while the cardholder is traveling. The annual fee is $695. Terms apply. END
 TITLE: Which Credit Cards Offer Concierge Services? CONTENT: **Chase Sapphire Preferred® Card**: One of the top all-around rewards cards, the Chase Sapphire Preferred® Card is a Visa Signature card, so cardholders can take advantage of complimentary concierge services through Visa. Among the tasks they can help with are making travel plans and finding personalized gifts at local stores. This card has a $95 annual fee and is currently offering new cardholders up to 100,000 bonus Ultimate Rewards points after spending $4,000 on eligible purchases in the first 3 months from account opening. END
 TITLE: Which Credit Cards Offer Concierge Services? CONTENT: **Capital One Venture Rewards Credit Card**: Another Visa Signature product, the services offered through this card are pretty much identical to those extended by the Chase Sapphire Preferred® Card. Like that card, this one also has a $95 annual fee. It is currently offering applicants up to 60,000 bonus miles after spending $3,000 on purchases within 3 months from account opening. END
 TITLE: Which Credit Cards Offer Concierge Services? CONTENT: How Do Credit Card Concierge Services Work?\n-------------------------------------------\nAlthough concierge service is included with many credit cards, it is not exactly an automatic perk. To use these services, you have to contact your issuer or bank and request help through a dedicated phone line, email, webpage or app. Here are a few of the key areas where concierges can help.\n*   **Travel planning**: Sure, you might make all your own travel plans these days thanks to the ease of doing so online. But if you're tight on time, or simply don't know where to start with a new destination, a credit card concierge can point you in the right direction with recommendations and options for flights, hotels, restaurants and activities.\n*   **Restaurant reservations**: Thanks to partnerships that many of the major credit card issuers have with restaurants and the fact that concierges can spend a lot of time looking at availability, some of them can snag you a table at hard-to-book eateries much more easily than you could yourself. They can also help with suggestions for where to eat if you're traveling somewhere unfamiliar.\n*   **Event tickets**: Credit card concierges are whizzes at scoring tickets to events such as concerts and sports games. Some issuers even set aside blocs of tickets specifically for their own cardholders, meaning you might get a seat even if something has been sold out for weeks.\n*   **General assistance**: While not as thorough or committed as a full-time assistant, concierges can do things like remind you of major calendar events, such as birthdays and anniversaries, and help you locate, purchase and ship presents. Concierges can also help with mundane necessities, like finding a plumber or a nearby service station for an oil change, getting a prescription delivered from the pharmacy, or even locating items you might have lost during a trip by getting in touch with an airline or hotel.\nPart of what makes concierge services so useful is that they are available 24\/7, so you can call on them anytime for help in a pinch—and there is usually no limit to the number of requests you can make. Just be realistic in your demands and expectations. It doesn't hurt to ask, but you probably won't get a last-minute table at The French Laundry or front-row seats to that sold-out Taylor Swift concert through one of them, and it usually takes around 24 to 48 hours for them to complete a task. Also remember that, while the service itself is typically complimentary, you still have to pay for the bookings or purchases they help you make, and they might not comparison shop as thoroughly as you would be willing to do yourself to find the best deal. END
 TITLE: Which Credit Cards Offer Concierge Services? CONTENT: What Credit Score Do You Need for a Credit Card With a Concierge?\n-----------------------------------------------------------------\nThe credit cards that include concierge service tend to be premium or luxury credit cards that require applicants to have very good or exceptional credit, and charge high annual fees. For example, the Chase Sapphire Reserve® gives cardholders access to the services of Visa Infinite Concierge, but the card also carries an annual fee of $550.\nBefore you open a new card, make sure you can pay its annual fee, and be sure to check your credit score, which you can do for free through Experian. If your score is not within the average range for a product you are considering, take steps to improve it. Among the things you can do are making all your payments on time and keeping your balances low, not opening several credit cards within a short period of time, and disputing any inaccuracies you might find on your credit report.\nA credit card concierge can be a great resource for folks who need help with things like travel, dining, events and day-to-day purchases. They basically act like part-time personal assistants and can help with a wide variety of requests. While it's probably not worth opening a new credit card specifically for the concierge services it offers, taking advantage of concierges can be a great way to reap more value from a credit card you carry. For help finding a credit card that's right for your needs, check out the options available through Experian CreditMatchTM. END
 TITLE: What Is a Platinum Credit Card? CONTENT: How Does a Platinum Credit Card Work?\n-------------------------------------\nPlatinum credit cards may have a variety of rewards or other benefits—or none at all. If a platinum card you're interested in offers a high level of cardholder perks, your credit likely needs to be in decent shape before you can qualify.\nWhen your credit is poor, you may not be able to qualify for the credit card in question and may have to explore other options. Secured cards, for example, help you build credit, but they require a deposit and have a low credit limit, and there are usually no rewards or benefits.\nThose whose credit is in better shape may be able to qualify for a higher-tier credit card. The credit score minimum and other borrowing criteria vary from lender to lender, but certain credit cards may offer lower interest rates, higher credit limits and more cardholder benefits than cards that may be easier to be approved for. END
 TITLE: What Is a Platinum Credit Card? CONTENT: What Is the Difference Between Platinum and Preferred Credit Cards?\n-------------------------------------------------------------------\nCredit card issuers choose various names and adjectives for their products without adhering to any sort of industry standard. What one issuer calls a platinum card may be very different from what another issuer deems platinum.\nWith some credit card issuers, platinum cards are more prestigious than preferred cards. Take the card offerings from American Express, for example. Annual fees on these cards range from $95 (after an introductory annual fee of $0 for the first year) for the Blue Cash Preferred® Card from American Express up to $695 for The Platinum Card® from American Express. Both come with rewards programs, but the benefits jump considerably from the Blue Cash Preferred® Card from American Express to The Platinum Card® from American Express, with popular added features such as airport lounge access. Additionally, The Platinum Card® from American Express works differently from a traditional credit card in that it allows you to carry a balance for certain charges, but not all.\nWith other issuers, platinum cards are less premium than preferred cards and are actually basic cards without rewards. As an example, Capital One Platinum Credit Card lacks rewards but is attainable by those with \"fair\" credit.\nIn other words, when you see the name of a credit card, don't assume it's out of reach for you or comes with certain features. Always read up on a card's benefits, requirements, and terms and conditions so you know if the card might be right for you and your wallet. END
 TITLE: What Is a Platinum Credit Card? CONTENT: Platinum Card Options\n---------------------\nIf you're interested in applying for a platinum card but your credit needs improvement, here are two options that have no rewards but can help you build credit history:\n*   **Capital One Platinum Credit Card**: Despite having platinum in the name, this card is geared toward those who have fair credit. The card has no annual fee, though the APR is a steep 26.99% (Variable) on purchases and balance transfers. Depending on your credit, your credit limit may start low, but you may be considered for a higher limit in as little as six months.\n*   **Platinum Elite Mastercard® Secured Credit Card**: This card has more lenient credit criteria, with poor to good credit scores considered. The APR is 19.99% Variable, but you can avoid paying any interest at all by paying your balance in full by the end of your billing period. There's an annual fee of $29. This secured card reports to all three major credit bureaus, which can help you establish a positive credit history. END
 TITLE: What Is a Platinum Credit Card? CONTENT: **Capital One Platinum Credit Card**: Despite having platinum in the name, this card is geared toward those who have fair credit. The card has no annual fee, though the APR is a steep 26.99% (Variable) on purchases and balance transfers. Depending on your credit, your credit limit may start low, but you may be considered for a higher limit in as little as six months. END
 TITLE: What Is a Platinum Credit Card? CONTENT: **Platinum Elite Mastercard® Secured Credit Card**: This card has more lenient credit criteria, with poor to good credit scores considered. The APR is 19.99% Variable, but you can avoid paying any interest at all by paying your balance in full by the end of your billing period. There's an annual fee of $29. This secured card reports to all three major credit bureaus, which can help you establish a positive credit history. END
 TITLE: What Is a Platinum Credit Card? CONTENT: Get Personalized Credit Card Offers\n-----------------------------------\nConfused by all the different options out there? If you need a credit card but aren't sure which type, try Experian CreditMatch™. After inputting some basic information, you'll immediately receive custom credit card offers without affecting your credit. END
 TITLE: How to Apply for Global Entry CONTENT: What Is Global Entry?\n---------------------\nGlobal Entry is a program from U.S. Customs and Border Protection (CBP). It allows travelers whom the U.S. government deems to be \"low risk\" to use automated immigrations kiosks when entering the country and to access expedited customs lines. The kiosks require you to answer a few questions about your travels and to submit your fingerprints and have your photo taken for identification purposes. This generates a customs form, which you then hand over to an agent overseeing the designated Global Entry line you'll go through in order to exit the airport.\nHaving Global Entry can save you hours of time waiting in various lines to enter the U.S. Here's what you need to know before you apply and how you can get the $100 application fee covered by certain credit cards. END
 TITLE: How to Apply for Global Entry CONTENT: Where Is Global Entry Available?\n--------------------------------\nThe program is currently in place at over 70 airports in the U.S. and abroad, including locations such as Abu Dhabi, Toronto and Vancouver. Returning to the U.S. from an airport abroad that has a Global Entry kiosk is a way to further expedite your customs clearance. END
 TITLE: How to Apply for Global Entry CONTENT: Who Is Eligible for Global Entry?\n---------------------------------\nGlobal Entry is available to U.S. citizens, lawful permanent residents of the U.S. and certain citizens from the other countries. Canadian citizens can access Global Entry benefits by enrolling in a different trusted traveler program called NEXUS. Depending on where you are from, you might have to meet additional requirements or provide more forms of documentation. You might not be eligible for Global Entry if you provide false information on your application, have been convicted of a crime, or have been found in violation of customs, immigration or agricultural regulations, among other circumstances. END
 TITLE: How to Apply for Global Entry CONTENT: Here are the steps to apply for Global Entry as well as a few other things to keep in mind.\n1.  Create a Trusted Traveler Program account. The first step is creating a Trusted Traveler Program (TTP) profile online. To do so, you'll need to provide a valid email address, set up two forms of online authentication (such as SMS texting and a verification app), and enter personal details including your address and telephone number.\n2.  Fill out the online application. Once you've created your TTP account, you'll log in and complete the Global Entry application. The government will ask about your personal history including any aliases or criminal record you might have, as well as where you have lived, what countries you have visited in the past five years, and other various other background questions.\n3.  Pay the application fee (and maybe get a statement credit for it). Upon completion of the application, you will have to pay a non-refundable $100 processing fee. The good news is, several popular travel rewards cards refund this fee to cardholders in the form of a statement credit once every four or five years, depending on the card. Among the ones that do are The Platinum Card® from American Express, the Chase Sapphire Reserve® and the Capital One Venture Rewards Credit Card.\n4.  Set up an in-person appointment. Once your application is conditionally approved, you can log in to your TTP account to schedule an interview at a Global Entry enrollment center. You can usually find these at major airports and certain border crossings, among other locations. While slots tend to fill up months in advance, you should check back frequently as some times become available at the last minute due to cancellations. If you have some international travel coming up, you can also try to enroll upon arrival. This is only available at certain facilities, so look for Enrollment on Arrival lanes when you land and see if there are CBP officers available to conduct interviews.\n5.  Ace the interview. When the day of your appointment arrives, show up at the enrollment center on time so you do not miss your slot. Be sure to bring your valid passport and another form of identification such as a driver's license or ID card to the interview. If you are a lawful permanent resident, you must bring your permanent residency card. It's also a good idea to bring a printout of your conditional approval letter just in case. A CBP officer will ask you to verify the information from your application and discuss any criminal history. You will then be fingerprinted and have your photo taken. The entire process should take around 10 to 15 minutes.\n6.  Register with airlines. If you were conditionally approved and your interview goes well, you should be confirmed as a Global Entry member immediately and will be given a Known Traveler Number. You will need to log in to your airline frequent-flier accounts and enter this number into your traveler information profile. Doing so should ensure that you are also approved for TSA Precheck access so you can use faster security screening lines when flying out of U.S. airports.\n7.  Renew every five years. Global Entry membership lasts five years, but you can renew your membership up to a year before your current Global Entry status expires to avoid any gap in access. To do so, you'll need to log in to your Trusted Traveler Profile. If you are eligible for renewal, you can click on the option to Renew Membership. At that point, you will be asked to verify your personal information as well as adding any new details since your last application, and then will be prompted to pay the $100 application fee. Remember to use a credit card that reimburses this fee if you have one. After you submit your application, you will either be automatically renewed, or will need to schedule a follow-up in-person appointment at a CBP location like the first time you applied. END
 TITLE: How to Apply for Global Entry CONTENT: Is Applying for Global Entry Worth It?\n--------------------------------------\nApplying for Global Entry is a quick process for most eligible travelers. Before registering as a Trusted Traveler, make sure you have all the information you will need on hand to submit your application and take stock of whether you have a credit card that will issue you a statement credit for the $100 application fee. After being conditionally approved, schedule your in-person interview as soon as possible, and don't forget that you might be able to do this quicker by enrolling upon arrival after an international flight into certain U.S. airports.\nEven with the $100 fee every five years, getting Global Entry is worth it for many travelers. Participating will save you time not only when reentering the U.S. from abroad, but also by having access to TSA Precheck security screening lines at U.S. airports. All of which makes joining Global Entry a great way to make your travel experience faster, easier and better overall. END
 TITLE: The Best Travel Credit Cards for Global Entry CONTENT: What Is Global Entry?\n---------------------\nIf you're not familiar with it, Global Entry is a U.S. Customs and Border Protection program for travelers that the U.S. government determines to be low security risks. Folks with Global Entry are able to use automated kiosks at immigration when entering the U.S. The kiosks require travelers to insert their passports, have a photo and fingerprints taken, and then answer a few simple questions about their travels.\nOnce complete, the machine generates a customs form, which allows members to exit the airport via expedited security lines. The entire process can take just a couple minutes depending on lines and the airport. It's a breeze compared with immigration and customs lines that can back up for hours at a time in the nation's busiest airports.\nGlobal Entry membership lasts five years, though you can renew your membership up to a year before your current status expires so that you don't experience any interruption in access. END
 TITLE: The Best Travel Credit Cards for Global Entry CONTENT: How Do You Apply for Global Entry?\n----------------------------------\nGlobal Entry is available to U.S. citizens and lawful permanent residents as well as citizens from certain other countries, such as Germany, Singapore and the U.K. among others. To apply, you must first create a Trusted Traveler Program (TTP) profile online. After that, you will need to complete an application form with information including your recent home addresses, any criminal record and all the countries you have traveled to in the past five years. Once you have filled out the online form, you have to pay a non-refundable $100 application fee.\nIf your application is conditionally approved, you will then need to set up an in-person interview at a Global Entry enrollment center, many of which are at airports and border crossings. You must bring your valid passport and another form of identification with you, such as a driver's license or permanent residency card. A customs officer will ask you questions to verify your identity and the information on your application, then fingerprint you and take your photo.\nThe appointment should take around 15 minutes and you will probably be notified of the decision immediately, after which you should be able to use the services when you return to the U.S. from abroad. It can take a few weeks for your Trusted Traveler card to arrive in the mail, though. END
 TITLE: The Best Travel Credit Cards for Global Entry CONTENT: How Can You Get Global Entry for Free?\n--------------------------------------\nWhile paying $100 every five years to enjoy the expedited services of Global Entry might not seem like much—after all, it breaks down to just $20 per year—applying becomes even more worthwhile if you can get your Global Entry fee reimbursed. The best way to do so is to use a credit card that will give you a statement credit for the cost of the application fee.\nThe way this works is, you use your eligible credit card to pay for the application fee, and then you should see a credit on your statement in the amount of $100. While it can theoretically take a billing cycle or two for this statement credit to be applied to your account, it usually happens automatically and almost instantly when you make the initial charge. END
 TITLE: The Best Travel Credit Cards for Global Entry CONTENT: Which Credit Cards Should You Use for Global Entry?\n---------------------------------------------------\nThere are over a dozen travel rewards credit cards that currently offer a Global Entry application fee statement credit, so you might already be carrying one that does so without even knowing it.\nIf you have Global Entry yourself, or have more than one credit card that will reimburse you for the application, some of these cards will let you charge the fee for someone else's application to your account and will still give you the statement credit. If in doubt, though, call your issuer to verify that this is the case before paying for the application.\nAlso remember that many of these credit cards will reimburse you for an application for either Global Entry or TSA Precheck, another time-saving travel program, but not both at the same time. So if you use your card to apply for TSA Precheck and receive a statement credit for that application fee, you will have to wait around four years until you are eligible again to take advantage of the card's Global Entry benefit. In general, you will be better off just applying for Global Entry since most folks who are approved will be extended TSA Precheck status as well.\nHere are some of the best travel rewards credit cards that cover the cost of a Global Entry application, and how often you can claim this benefit.\n*   **Chase Sapphire Reserve®**: Cardholders can receive a statement credit of up to $100 every four years as a reimbursement when the Global Entry application fee is charged to their card. Among this card's other benefits are up to $300 in annual travel statement credits, 3 Ultimate Rewards points per dollar spent on dining and travel, 3 points per dollar on up to $1,000 per month on grocery store purchases through April 2021, and 10 points per dollar on Lyft rides through March 2022. You'll also have access to over 1,200 airport lounges around the world. The card's annual fee is $550.\n*   **Capital One Venture Rewards Credit Card**: Cardholders are eligible for up to a $100 statement credit once every four years for a Global Entry application charged to their card. Among the other benefits are earning 2 miles per dollar on all eligible purchases and waived foreign transaction fees. The card charges a $95 annual fee. END
 TITLE: The Best Travel Credit Cards for Global Entry CONTENT: *   **Chase Sapphire Reserve®**: Cardholders can receive a statement credit of up to $100 every four years as a reimbursement when the Global Entry application fee is charged to their card. Among this card's other benefits are up to $300 in annual travel statement credits, 3 Ultimate Rewards points per dollar spent on dining and travel, 3 points per dollar on up to $1,000 per month on grocery store purchases through April 2021, and 10 points per dollar on Lyft rides through March 2022. You'll also have access to over 1,200 airport lounges around the world. The card's annual fee is $550. END
 TITLE: The Best Travel Credit Cards for Global Entry CONTENT: *   **Capital One Venture Rewards Credit Card**: Cardholders are eligible for up to a $100 statement credit once every four years for a Global Entry application charged to their card. Among the other benefits are earning 2 miles per dollar on all eligible purchases and waived foreign transaction fees. The card charges a $95 annual fee. END
 TITLE: Get the Most From Your Credit Card Rewards CONTENT: ### Combining Points\nIf you have more than one credit card from the same bank, it might be possible to combine the rewards you earn from all of them. For example, the Chase Freedom Unlimited® card earns 1.5 Ultimate Rewards points (Chase's own points program) per dollar spent on all purchases. If you have this card alone, that's worth 1.5% cash back. However, if you also carry the more premium Chase Sapphire Preferred® Card or the Chase Sapphire Reserve®, you can combine the points you earn from all your cards and transfer them to the Ultimate Rewards program's 10 airline and three hotel partners, including United, Southwest, JetBlue, Hyatt and Marriott, among others. So carrying a couple different cards from the same bank can open up your rewards options. END
 TITLE: Get the Most From Your Credit Card Rewards CONTENT: 2\\. Take Advantage of an Intro Bonus\n------------------------------------\nOne of the best ways to maximize credit card rewards is to score an intro bonus. An intro bonus, also known as a sign-up bonus, is usually an offer worth thousands of points or miles you can earn with a new credit card. It's a little more complicated than just signing up for a new credit card and getting a bunch of bonus points, though.\nTo earn an introductory bonus, you usually have to spend a certain amount in eligible purchases within a set time frame. For example, if you're approved for the Chase Sapphire Preferred® Card, you have 3 months to make $4,000 or more in purchases using your card to earn its intro bonus of 100,000 Ultimate Rewards points. If you don't meet that spending threshold, you don't get the bonus. Before applying for any new cards, make sure the intro bonus offer is worth it to you and that you can meet any purchase requirements to earn it.\n3\\. Look Out for Promotions\n---------------------------\nSometimes rewards credit cards offer limited-time promos to attract new customers and get existing ones to use their cards more.\n### Limited-Time Promos\nCredit cards sometimes offer bonus miles or points on purchases made during a certain time period, usually with a dollar cap. Pay attention to any emails or mailers that you receive from your card issuer to see if you might be targeted for a promotion like this.\n### Annual Perks\nSome premium rewards credit cards also offer annual benefits that reset either each calendar year or every year you keep a card open and pay its annual fee. For example, the American Express® Gold Card will refund you up to $10 per month when you use it to pay for orders from Grubhub, Seamless, The Cheesecake Factory, Ruth's Chris Steak House, Boxed or participating Shake Shack locations. It also comes with up to a $10 Uber Cash benefit monthly that can be used towards Uber Eats or Uber rides orders within the United States. That's a good value cardholders can get each year—but only if they pay attention to their benefits and actually put them to use within the specified time period. (Keep in mind, unlike typical credit cards, the American Express® Gold Card only lets you carry a balance for certain charges—not all of them.)\n4\\. Spend Strategically\n-----------------------\nIn the past, most rewards credit cards simply allowed users to earn 1 point or mile per $1 spent, no matter where they used them. But with so many more rewards credit cards available these days, banks have had to raise their game and offer bonus earning opportunities to keep cardholders interested. It's important to think about the kinds of purchases you usually make and use the credit cards that will earn the most points or miles for them.\n### Bonus Categories\nMany travel rewards credit cards earn multiple points per dollar spent when you use them to make purchases at specific types of businesses. For example, the Hilton Honors American Express Surpass® Card earns 12 points per dollar on eligible Hilton purchases, but also 6 points per dollar for eligible purchases at U.S. restaurants, U.S. supermarkets and U.S. gas stations. It racks up 3 points per dollar on all other eligible purchases. Make sure you are carrying rewards cards that rack up the most points or miles on the types of things you usually buy so you can boost your earning as much as possible.\n### Quarterly Bonus Categories\nInstead of permanent bonus categories, some rewards credit cards offer bonuses that change every few months. With the Chase Freedom Flex℠, for instance, cardholders who activate the bonus category each quarter can earn 5 points per dollar on up to $1,500 in combined purchases in those categories. Those categories could include gas stations, select content streaming services, movie theaters, restaurants and more.\n### Use Multiple Rewards Cards\nChances are you have more than one credit card, and that's a good thing because it means you can earn bonus points at even more places. The popular Chase Sapphire Preferred® Card earns 3 points per dollar on dining, and 2 points per dollar on a wide range of travel expenses like airfare and hotel stays as well as train tickets, ride shares and even parking meters. By contrast, the Amex EveryDay® Preferred Credit Card earns 3 points per dollar on up to $6,000 in eligible purchases per calendar year at U.S. supermarkets, and 2 points per dollar at eligible U.S. gas stations with no cap. It even offers a 50% bonus on all the points you earn each billing period when you use the card 30 times or more. If you combine these two cards and use them strategically, you could be earning bonus points on nearly every dollar you spend.\n5\\. Pay Off Balances in Full\n----------------------------\nBefore you get carried away with charging everything, though, remember that the key to getting the most value from credit card rewards is to keep your credit in good shape. Only use your rewards cards to make purchases you would otherwise, and be sure to pay off your balance on time and in full every month.\nCarrying a balance can lower your credit score over time otherwise. The interest and late fees you have to pay on credit card balances will also cost far more than your rewards points are worth. By using your credit cards responsibly, though, you can get plenty of value from the rewards you earn with them.\nThe Bottom Line\n---------------\nRewards credit cards are a fantastic way to earn free travel, cash back and other benefits. By looking at the perks your credit cards offer, taking advantage of any bonus-earning opportunities, and using them responsibly, you can reap hundreds—or even thousands—of dollars in value from rewards credit cards each year. For more information on rewards credit cards and to see current offers, you can pull up personalized options through Experian CreditMatchTM.\n_All information about the Chase Freedom® and Amex EveryDay® Preferred Credit Card has been collected by Experian and has not been reviewed or provided by the issuer of the card. Offer details may be outdated._ END
 TITLE: Get the Most From Your Credit Card Rewards CONTENT: To earn an introductory bonus, you usually have to spend a certain amount in eligible purchases within a set time frame. For example, if you're approved for the Chase Sapphire Preferred® Card, you have 3 months to make $4,000 or more in purchases using your card to earn its intro bonus of 100,000 Ultimate Rewards points. If you don't meet that spending threshold, you don't get the bonus. Before applying for any new cards, make sure the intro bonus offer is worth it to you and that you can meet any purchase requirements to earn it. END
 TITLE: Get the Most From Your Credit Card Rewards CONTENT: 4\\. Spend Strategically\n-----------------------\nIn the past, most rewards credit cards simply allowed users to earn 1 point or mile per $1 spent, no matter where they used them. But with so many more rewards credit cards available these days, banks have had to raise their game and offer bonus earning opportunities to keep cardholders interested. It's important to think about the kinds of purchases you usually make and use the credit cards that will earn the most points or miles for them. END
 TITLE: Get the Most From Your Credit Card Rewards CONTENT: ### Use Multiple Rewards Cards\nChances are you have more than one credit card, and that's a good thing because it means you can earn bonus points at even more places. The popular Chase Sapphire Preferred® Card earns 3 points per dollar on dining, and 2 points per dollar on a wide range of travel expenses like airfare and hotel stays as well as train tickets, ride shares and even parking meters. By contrast, the Amex EveryDay® Preferred Credit Card earns 3 points per dollar on up to $6,000 in eligible purchases per calendar year at U.S. supermarkets, and 2 points per dollar at eligible U.S. gas stations with no cap. It even offers a 50% bonus on all the points you earn each billing period when you use the card 30 times or more. If you combine these two cards and use them strategically, you could be earning bonus points on nearly every dollar you spend. END
 TITLE: Get the Most From Your Credit Card Rewards CONTENT: 5\\. Pay Off Balances in Full\n----------------------------\nBefore you get carried away with charging everything, though, remember that the key to getting the most value from credit card rewards is to keep your credit in good shape. Only use your rewards cards to make purchases you would otherwise, and be sure to pay off your balance on time and in full every month.\nCarrying a balance can lower your credit score over time otherwise. The interest and late fees you have to pay on credit card balances will also cost far more than your rewards points are worth. By using your credit cards responsibly, though, you can get plenty of value from the rewards you earn with them. END
 TITLE: Get the Most From Your Credit Card Rewards CONTENT: The Bottom Line\n---------------\nRewards credit cards are a fantastic way to earn free travel, cash back and other benefits. By looking at the perks your credit cards offer, taking advantage of any bonus-earning opportunities, and using them responsibly, you can reap hundreds—or even thousands—of dollars in value from rewards credit cards each year. For more information on rewards credit cards and to see current offers, you can pull up personalized options through Experian CreditMatchTM. END
 TITLE: What Credit Score Do You Need to Get a Rewards Card? CONTENT: Rewards credit cards come with major benefits, and to qualify for the privilege of using them, you'll need a credit score of 670 or higher. The closer your score is to 850, the more likely it is you'll be eligible for the cards with the most valuable perks.\nCredit card companies want your business if you have good or excellent credit, since they anticipate you'll be a trustworthy customer who won't miss payments. Rewards are a way they can entice you to sign up for a particular card, and to use that card for many of your purchases. If you have a fair or poor credit score, you're considered a greater risk to lenders, and issuers in turn may not be as interested in securing you as a rewards card customer.\nIf you're not sure what your credit score is, there are lots of ways to find out. Check with your bank and current credit card issuers to see if they offer free credit score monitoring. Many websites also offer free credit scores if you register for an account, including Experian, which provides free FICO® Scores☉ .\nKnow that while a credit card issuer's decision-making will rely heavily on your credit scores, they look at additional factors, too, including your income and current debt load. You'll also need to be at least 21 years old to qualify; applicants between 18 and 20 must prove they earn an independent income. END
 TITLE: What Credit Score Do You Need to Get a Rewards Card? CONTENT: Look Into These Rewards Credit Cards\n------------------------------------\nThe best rewards card for you will have perks that align with your spending, and offer easy redemption options for your rewards.\nSome cards give you points for each purchase that you can use to buy flights and hotel stays; others give you cash back on what you buy, which can help reduce your credit card balance. Take time to analyze where most of your spending goes, what you want to get out of your new rewards card and which card will best help you reach your goals. For instance, do you spend a lot on travel or on meals out? Do you want a card with a straightforward rewards structure or one with varying rewards categories you can use to maximize your earnings?\nDepending on your goals, one of these cards could be for you:\n*   **If you're a jet-setter**: The Capital One Venture Rewards Credit Card is a flexible travel rewards card that charges no foreign transaction fees has an annual fee of $95. You'll get an intro bonus of 60,000 miles when you spend $3,000 in 3 months.\n*   **If you're loyal to a specific airline**: Frequent Delta flyers can save by using the Delta SkyMiles® Gold American Express Card, for example, which waives the charge on your first checked bag and gives you Main Cabin 1 priority boarding on Delta flights. Cardholders can earn 70,000 points if they spend $2,000 with the card in the first 3 months. END
 TITLE: What Credit Score Do You Need to Get a Rewards Card? CONTENT: *   **If you're a jet-setter**: The Capital One Venture Rewards Credit Card is a flexible travel rewards card that charges no foreign transaction fees has an annual fee of $95. You'll get an intro bonus of 60,000 miles when you spend $3,000 in 3 months. END
 TITLE: What Credit Score Do You Need to Get a Rewards Card? CONTENT: Consider Improving Your Credit Before Applying\n----------------------------------------------\nThe perks of rewards cards could incentivize you to up your credit score—in addition to benefits like lower interest rates on loans and a potentially easier time qualifying for new credit. To improve your credit score, try these tactics:\n*   **Put bills on autopay.** Since payment history is the biggest contributor to your credit score, try not to miss even a single credit card, loan or utility bill payment. Set up automatic payments from your checking account so you never fall behind, but make sure your account has enough funds to avoid overdrawing it.\n*   **Cut down on debt.** Your credit utilization, or the amount of available credit you're using compared with your credit limit, is the second most important element of your credit score. If you've been carrying a balance on a current credit card, pay it off before you apply for a new one. Avoid applying for new lines of credit in the months before getting a new credit card, too, since doing so could land hard inquiries on your credit report. These could lead to a brief dip in your score, since financial institutions may view customers who frequently seek credit as a lending risk.\n*   **Dispute errors on your credit report.** Check your credit report to make sure your personal information is correct, that all the accounts listed are those you opened, and that all payments were accurately reported. Certain errors can bring down your score. If you see an on-time payment incorrectly listed as late, for instance, file a dispute with the appropriate credit bureau to have it corrected. END
 TITLE: What Credit Score Do You Need to Get a Rewards Card? CONTENT: Use Rewards Cards the Right Way\n-------------------------------\nQualifying for a rewards card is just the start. Choosing one that you'll use regularly—and has perks that work for your spending—is the next step.\nBut take care not to charge more than you can pay off each month. While that's an important financial strategy no matter what, it's especially crucial when your goal is to earn rewards; they'll lose value if you carry a balance and accrue interest on your purchases. Spend enough to get the cash back or points you'll use, then pay off your balance monthly so you can get the most out of your new card.\nAnother thing: Never spend more than you would otherwise with the sole intention of reaping rewards for the money you spend. Make sure your rewards work for you, not the other way around. END
 TITLE: How to Manage Multiple Rewards Cards CONTENT: 1\\. Take Inventory of Your Credit Card Purchases\n------------------------------------------------\nOne of the main reasons to have multiple rewards credit cards is to earn rewards for various types of spending. Most rewards cards offer points for different purchases—like travel, restaurants, gas and more—and knowing what you spend most on is important in managing all of your cards and maximizing their rewards.\nTake inventory of your top spending categories: These might include travel, restaurants, grocery stores or something else. Once you know what you spend most on, make sure you have cards that offer rewards for those types of purchases. This will help you begin to maximize your reward earnings. END
 TITLE: How to Manage Multiple Rewards Cards CONTENT: 2\\. Decide Which Card You'll Use for What\n-----------------------------------------\nIf you know what you spend on, and have multiple cards that offer rewards across several categories, you'll want to create a plan for which card you will use for which purchases.\nUse this scenario as an example: You have three rewards credit cards—two offer rewards for travel purchases and one offers rewards for spending at restaurants. When spending on travel, use the card that offers the most rewards or pick the card that earns the most valuable points. But when you go out to eat, make sure you have your restaurant rewards card on hand so you can earn the extra points for that spending.\nAnother thing to be aware of is how each card issuer and card \"codes\" or defines certain types of spending. For example, The Platinum Card® from American Express offers lucrative travel rewards of 5 points per dollar spent—but that applies only to flights booked directly with airlines or hotel and airline bookings made through the Amex travel portal. The Chase Sapphire Reserve® card, on the other hand, offers travel rewards of 3 points per dollar spent on all types of travel, including transportation options from Uber and public transit to air travel.\nThe difference in how each of these cards code purchases could dictate how you use them, so if you have multiple rewards cards, make sure you read the fine print of your card agreement so you can plan ahead to use the right card for the right purchases. END
 TITLE: How to Manage Multiple Rewards Cards CONTENT: 3\\. Understand and Remember Important Dates\n-------------------------------------------\nWhen it comes to important credit card dates, there are a few big ones to remember. First, some of your card benefits will renew at different times of the year, and if you don't know when they renew, you may be leaving valuable benefits on the table. Second, make sure you know when your annual fees hit each year (more on this below).\nBenefit renewal dates will change from card to card, but generally they revolve around the calendar year or your cardmember anniversary date. Some of the cards' other perks may also be bound by a range of dates, and knowing ahead of time will help you make sure you get all the rewards the card has to offer.\nWhen you have two or three rewards cards, remembering all these dates can be tricky, so consider writing them down or adding calendar alerts to make sure you don't miss out on any important ones. END
 TITLE: How to Manage Multiple Rewards Cards CONTENT: 4\\. Track All Your Cards\n------------------------\nWhether it's tracking your annual fees, monitoring your rewards or just knowing how many cards you have, consider creating a spreadsheet or other file to store all these important details so you can easily monitor and check in on your accounts. Having all this information in one place will help you stay on top of your accounts and will allow you to make more informed and responsible decisions—which should translate into more rewards.\nDepending on the cards you have and the amount of detail you want to include, your spreadsheet may contain different things. If you have cards that offer cardholder perks you want to track—like travel credits, airport lounge access or shopping discounts—include these in your spreadsheet and consider tracking your redemptions.\nWhatever tracking system you choose, make sure you can update it throughout the year. Having a central location where you track these things is just another way to protect yourself from losing some of the valuable benefits your cards offer. END
 TITLE: How to Manage Multiple Rewards Cards CONTENT: 5\\. Don't Forget About the Annual Fees\n--------------------------------------\nIf you have multiple rewards cards, you probably have multiple annual fees. The good news is if you maximize your spending, these fees could easily pay for themselves.\nFirst, make sure you know when these fees hit each year so you can plan for the extra payment amount on your monthly bill. It's also helpful to be aware of these dates in case you ever want to downgrade a card to one with no annual fee or close your account. Remember, closing accounts can have a negative impact on your credit score, so always look into downgrading a card before deciding to close an account altogether.\nDepending on how many rewards cards you have—and especially if you have a card with an annual fee in excess of $400—you're going to want to have a system in place to make sure you aren't paying too much for too little. The rewards earned by most cards make paying the annual fee worth it, but if you have cards you hardly use or that offer measly reward options, you may consider downgrading or changing that card for something else to avoid having to pay for something that isn't returning the value. END
 TITLE: How to Manage Multiple Rewards Cards CONTENT: Looking for Another Rewards Card? Consider Checking Your Credit First\n---------------------------------------------------------------------\nIf you're thinking about adding another rewards credit card to your wallet, consider getting a free credit report and credit score from Experian so you know what lenders will see when considering your application. To learn more about some popular rewards credit cards, check out Experian CreditMatchTM, which will pair you with specialized card offers based on your credit file. END
 TITLE: What Is a Sign-Up Bonus on a Credit Card? CONTENT: Credit card sign-up bonuses are pretty straightforward. When you open a new card, you usually have to spend some money on it in your first few months to earn the sign-up bonus. The size of the bonus you're offered, as well as how much you have to spend to get it and in what time period, will all depend on the specific card you apply for.\nIf you want to earn tens of thousands of points, you usually have to use your new card to make hundreds or even thousands of dollars' worth of purchases in a short amount of time. But these terms and requirements can vary a lot.\nSome cards, for example, may offer a tiered sign-up bonus where you earn a certain number of miles after a minimum spend in the first three months and an additional number of bonus miles if you hit a larger spending target in the first six months with the card.\nFinally, some rewards cards do not even have a set spending requirement to keep track of. Barclays' AAdvantage® Aviator® Red World Elite Mastercard® is offering new cardmembers 60,000 bonus American Airlines AAdvantage miles just for making their first purchase within the first 90 days of account opening and paying the card's $99 annual fee in full.\nAs you can see, not only do sign-up bonuses vary in terms of their size, but the hoops you have to jump through to earn them can also be very different from card to card. END
 TITLE: What Is a Sign-Up Bonus on a Credit Card? CONTENT: How to Get a Sign-Up Bonus\n--------------------------\nIf you want to get a sign-up bonus, you have to apply for a new credit card. It's not quite as simple as it sounds, though.\nThere are many credit cards geared toward folks with no or low credit. However, the rewards cards with the highest sign-up bonuses usually require anyone applying to have good to excellent credit scores.\nBefore you apply for a new credit card, find out if you need a minimum credit score to be considered. Then make sure you can meet any spending requirements that come as part of the bonus offer. After all, you wouldn't want to apply for a great new credit card and a shot at tens of thousands of points only to end up not earning them because you can't make enough purchases with your card in the first few months. That said, make sure you'll be able to pay off those initial purchases right away so you don't accrue interest, which can be high on these cards. END
 TITLE: What Is a Sign-Up Bonus on a Credit Card? CONTENT: How to Get the Most out of Your Credit Card Bonus\n-------------------------------------------------\nThere are a few more important things to keep in mind as you think about what credit card sign-up bonuses you would like to earn and how to get the most value from them. END
 TITLE: What Is a Sign-Up Bonus on a Credit Card? CONTENT: Look Into These Cards Offering a Sign-Up Bonus\n----------------------------------------------\nMost rewards credit cards, with the exception of the most basic products, offer sign-up bonuses. But the bonus, ongoing rewards and especially annual fees can vary greatly, so research your options carefully and decide which types of rewards best fit your lifestyle before deciding on a card. Here are a few of the best that are currently available:\n*   **Chase Sapphire Preferred® Card**: Earn 100,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,250 toward travel when you redeem through Chase Ultimate Rewards, but these points can also be transferred to the loyalty programs of 10 partner airlines and three hotel chains. The card's annual fee is $95.\n*   **Bank of America® Premium Rewards® credit card**: Earn 50,000 bonus points, a $500 value, after you make at least $3,000 in purchases in the first 90 days of account opening. The annual fee is $95.\n*   **Southwest Rapid Rewards® Premier Credit Card**: Earn 40,000 points after you spend $1,000 on purchases in the first 3 months your account is open. In addition, during the first year, new cardholders can earn 3 points per dollar on dining, including takeout and select delivery services. The annual fee is $99.\nMake Sure Your Sign-Up Bonus Works for You\n------------------------------------------\nCredit card sign-up bonuses can be the fastest way to earn rewards points or cash back. Some of the best rewards credit cards offer sign-up bonuses of thousands of points or miles that you can redeem for free flights or nights at hotels. Other cards offer points worth hundreds of dollars in cash back that you can put toward travel and other expenses.\nBefore you apply, though, make sure you will be able to meet any spending requirements for a new credit card (and pay off the balance quickly) and that you will be able to use the bonus points or miles for the rewards you want. Otherwise, you might not get the value you expect from your sign-up bonus. You can find current credit card offers and personalized picks through Experian CreditMatchTM.\n_All information about the Barclays' AAdvantage® Aviator® Red World Elite Mastercard® and Bank of America® Premium Rewards® credit card has been collected by Experian and has not been reviewed or provided by the issuer of the card. Offer details may be outdated._ END
 TITLE: What Is a Sign-Up Bonus on a Credit Card? CONTENT: **Chase Sapphire Preferred® Card**: Earn 100,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,250 toward travel when you redeem through Chase Ultimate Rewards, but these points can also be transferred to the loyalty programs of 10 partner airlines and three hotel chains. The card's annual fee is $95. END
 TITLE: What Is a Sign-Up Bonus on a Credit Card? CONTENT: *   **Southwest Rapid Rewards® Premier Credit Card**: Earn 40,000 points after you spend $1,000 on purchases in the first 3 months your account is open. In addition, during the first year, new cardholders can earn 3 points per dollar on dining, including takeout and select delivery services. The annual fee is $99. END
 TITLE: What Is a Sign-Up Bonus on a Credit Card? CONTENT: Make Sure Your Sign-Up Bonus Works for You\n------------------------------------------\nCredit card sign-up bonuses can be the fastest way to earn rewards points or cash back. Some of the best rewards credit cards offer sign-up bonuses of thousands of points or miles that you can redeem for free flights or nights at hotels. Other cards offer points worth hundreds of dollars in cash back that you can put toward travel and other expenses.\nBefore you apply, though, make sure you will be able to meet any spending requirements for a new credit card (and pay off the balance quickly) and that you will be able to use the bonus points or miles for the rewards you want. Otherwise, you might not get the value you expect from your sign-up bonus. You can find current credit card offers and personalized picks through Experian CreditMatchTM.\n_All information about the Barclays' AAdvantage® Aviator® Red World Elite Mastercard® and Bank of America® Premium Rewards® credit card has been collected by Experian and has not been reviewed or provided by the issuer of the card. Offer details may be outdated._ END
 TITLE: What to Know Before You Apply for a Store Credit Card CONTENT: Can You Use Store Credit Cards Anywhere?\n----------------------------------------\nThere are two types of store credit cards: closed-loop and open-loop. Closed-loop retail cards are more common and only allow you to use your credit card with that retailer and, in some cases, its other brands and partners. This can make it difficult to use the card regularly unless you shop at the retailer often.\nOpen-loop store cards, on the other hand, use one of the major payment networks (typically Visa, Mastercard or American Express). This allows you to use the card with the specific co-branded retailer as well as anywhere else that accepts the payment network shown on the card.\nIf you're considering getting a store credit card, check to see where it's accepted. In some cases, you may have the choice between a closed-loop and open-loop card. If you have the option, pick the card you can use more broadly so you have extra flexibility. END
 TITLE: What to Know Before You Apply for a Store Credit Card CONTENT: How a Store Card Can Affect Your Credit\n---------------------------------------\nIn general, a store credit card affects your credit the same way a traditional card does. When you apply for a store card, the card's issuer will typically run a hard inquiry on your credit report, which can temporarily knock a few points off your credit score.\nIf the card issuer reports your activity to the three national credit reporting agencies—Experian, TransUnion and Equifax—responsible use and on-time payments can help improve your credit score.\nOn the flip side, missing payments and racking up a high balance could have an adverse effect on your credit score. This is especially the case with store credit cards because they typically offer lower credit limits than traditional credit cards.\nFor example, let's say you qualify for a $400 credit limit on a store card and a $4,000 limit on a traditional card. If you put $200 on each card, your credit utilization rate (your balance divided by your limit) would be 50% on the store card and 5% on the other card. Credit experts generally recommend keeping your utilization rate below 30%, and the lower, the better.\nAfter payment history, credit utilization is the most important factor in your credit score calculation. Because a lower credit limit creates a greater risk of having a high utilization rate, you'll need to be more careful with store credit cards and make an effort to keep your balance low. END
 TITLE: What to Know Before You Apply for a Store Credit Card CONTENT: What Are Some Other Differences to Consider?\n--------------------------------------------\nIn addition to lower credit limits, retail cards also typically charge higher interest rates than regular credit cards. With a retail card, you'll need to be extra careful to spend only what you can pay off each month so you don't end up with expensive interest charges.\nStore credit cards also typically have different incentives than other rewards credit cards. Many stores offer an instant discount on goods you're purchasing if you sign up for the card at checkout. You'll also usually get ongoing benefits specific to the store, such as exclusive access to sales, free shipping, special discounts and more.\nSome retail cards offer additional rewards, but they typically aren't competitive with regular rewards credit cards, especially when it comes to purchases you make elsewhere, if allowed.\nWhile these features can come in handy if you already shop at a specific retailer often, they might also encourage you to spend more than you normally would. END
 TITLE: What to Know Before You Apply for a Store Credit Card CONTENT: Are Store Credit Cards Worth It?\n--------------------------------\nIt can be tempting to apply for a store credit card to qualify for a one-time discount, especially on a major purchase. But before you do, take some time to consider whether a store card is worth it for you.\nFor starters, applying at the cash register may be the worst time to make such an important financial decision. In addition to being put on the spot, you may be lured by the instant gratification of the discount, both of which could cloud your judgment.\nInstead, take some time to consider how often you shop at the retailer and whether you'd be able to control your spending with a store credit card. If you're an irregular shopper with the store, it likely doesn't make sense to open a new credit account you'll rarely use. And if all the discounts, sales access and other perks are too tempting, you'll likely save money staying away.\nIf you're looking to get a lot of value regardless of where you shop and don't think a store card is a good fit, consider a regular rewards credit card instead. Depending on which one you choose, you could get much more upfront value via a sign-up bonus and possibly even an introductory 0% APR promotion, plus ongoing value through rewards and other perks.\nGetting a store credit card could make sense, however, if you're relatively new to credit or your credit score isn't in great shape. Many retail cards, especially closed-loop cards, have less stringent credit requirements, so they could offer a solid path toward establishing a good credit history if used responsibly.\nAlso, if you do shop at a specific retailer regularly and can't get better value on your purchases there with a traditional credit card, that store's credit card may be worth considering. END
 TITLE: What to Know Before You Apply for a Store Credit Card CONTENT: Avoid Applying for Any Credit Card on a Whim\n--------------------------------------------\nWhether you're at the cash register, at the bank or on your computer, avoid applying for a credit card without thinking it through carefully.\nBefore you do anything, check your credit score to see where you stand and whether you have a good chance of getting approved. While many retail cards are available if you have limited or bad credit, most of the best rewards credit cards require good credit or better, which means a FICO credit score of 670 or higher.\nAlso, take some time to compare several credit card options before you pick one. For instance, one may offer a bigger introductory bonus, but another may provide better ongoing rewards rates that will give you more value over time.\nAs you shop around and consider which credit card is best for you, you'll have an easier time avoiding cards that aren't the right fit or could end up causing you to leave value on the table. END
 TITLE: How to Get a Black Card CONTENT: How Do You Qualify for a Black Card?\n------------------------------------\nUnlike other credit cards, you can only get a black card if you receive an invitation from American Express. Although Amex doesn't publish requirements for the card—or its perks, for that matter—it typically extends black card invitations only to high earners who have spent and paid off between $350,000 and $500,000 across all of their American Express accounts in a calendar year.\nSaying yes to that invitation means paying a $7,500 initiation cost and annual fees of $2,500 per card (cardholders can have two cards per account). So qualifying is only one consideration when looking at the black card. END
 TITLE: How to Get a Black Card CONTENT: What Credit Score Is Needed for a Black Card?\n---------------------------------------------\nIn addition to being a high earner and meeting large spending requirements, you'll need top credit scores to get a black card. A credit score between 800 and 850 is considered exceptional. If your score falls in the 700s or even high 600s, you may still be considered for a black card if your overall wealth and card spending catch American Express' eye. END
 TITLE: How to Get a Black Card CONTENT: What Are the Benefits of Having a Black Card?\n---------------------------------------------\nThere are a number of benefits you can enjoy as a Centurion® Card holder, including:\n*   **Hotel elite status**: If you have a black card, you get hotel elite status with four major hotel loyalty programs, including those from Starwood, Hilton, Intercontinental Hotels Group, and Relais & Chateau. Hotel elite status can land you perks like competitive rates, free WiFi, room upgrades, late checkouts, complimentary breakfast, resort and spa credits, and complimentary stays, food and beverages.\n*   **Car rental elite status**: By renting a car with your black card, you can get elite status with car rental companies such as Avis and Hertz and enjoy expedited service that allows you to skip the counter and go straight to your car, earn rewards and redeem them for rentals and upgrades, and receive exclusive monthly email offers. Free roadside assistance and primary rental insurance are available as well.\n*   **Access to airport lounges**: Having a black card comes with access to more than 900 airport lounges around the world. You and your entire party can enjoy them while you're traveling at no extra charge.\n*   **24\/7 concierge service**: As a black card holder, you can take advantage of the Centurion's concierge service to help you make travel arrangements, purchase gifts, secure reservations at exclusive restaurants, get tickets to nearly any event, help you manage your account, and more.\n*   **Shopping perks**: A black card can give you access to a personal shopper, invitations to exclusive events at popular retailers, and even after-hours access at select stores.\n*   **International arrival service**: If you travel internationally often, a black card can be very beneficial. When you fly business or first class with American Express Travel, you'll be assigned a guide who will help you expedite the immigration and customs process when you fly into one of 32 international airports.\n*   **No spending limit**: Because the Centurion® Card has no preset spending limits, you can use it to buy big ticket items that you may not be able to purchase with other credit cards. Since a black card is a charge card rather than a credit card, charges must be paid in full each month. END
 TITLE: How to Get a Black Card CONTENT: American Express Black Card Alternatives\n----------------------------------------\nIf you don't get an invite to the American Express Centurion® Card or decide it's not right for you, consider these credit card alternatives.\n*   **Chase Sapphire Preferred® Card**: With the Chase Sapphire Preferred® Card, you can earn 3 points per dollar spent on dining at restaurants (including takeout and eligible delivery services), 2 points per dollar spent on travel purchases, 5 points per $1 spent on Lyft rides through March 2022, and 1 point per dollar on all other purchases. The Chase Sapphire Preferred® Card currently offers an intro bonus of 100,000 points for spending $4,000 on purchases in the first 3 months. You can redeem these points for $1,250 in travel purchases through Chase Ultimate Rewards.\n*   **Luxury Card™ Mastercard® Black Card™**: The Luxury Card™ Mastercard® Black Card™ offers airline credit, free access to airport lounges, and a number of other travel perks. Unlike the American Express black card, you don't need an invitation to get the Luxury Card™ Mastercard® Black Card™.\n*   **The Platinum Card® from American Express**: You don't have to be as much of a big spender to apply for The Platinum Card® from American Express. It's similar to the black card, as it offers complimentary access to airport lounges, concierge services and hotel elite status.\nWhile the black card has a lot to offer, it's not an option for everyone. If you do happen to get an invite for one, do your research and consider alternatives to make sure you're making the right choice for your lifestyle needs and preferences. END
 TITLE: How to Get a Black Card CONTENT: *   **Chase Sapphire Preferred® Card**: With the Chase Sapphire Preferred® Card, you can earn 3 points per dollar spent on dining at restaurants (including takeout and eligible delivery services), 2 points per dollar spent on travel purchases, 5 points per $1 spent on Lyft rides through March 2022, and 1 point per dollar on all other purchases. The Chase Sapphire Preferred® Card currently offers an intro bonus of 100,000 points for spending $4,000 on purchases in the first 3 months. You can redeem these points for $1,250 in travel purchases through Chase Ultimate Rewards. END
 TITLE: How to Get a Black Card CONTENT: *   **Luxury Card™ Mastercard® Black Card™**: The Luxury Card™ Mastercard® Black Card™ offers airline credit, free access to airport lounges, and a number of other travel perks. Unlike the American Express black card, you don't need an invitation to get the Luxury Card™ Mastercard® Black Card™. END
 TITLE: How to Maximize Rewards by Switching From Debit to Credit CONTENT: What Do Credit and Debit Cards Have in Common?\n----------------------------------------------\nBeyond just their appearance, credit and debit cards have some core similarities. They're both easy and secure payment options that are accepted in many places and serve well as replacements for cash. Most debit and credit cards also come with some sort of fraud and theft protection, and using them in lieu of cash can limit the risk of carrying around physical money. END
 TITLE: How to Maximize Rewards by Switching From Debit to Credit CONTENT: What's the Difference Between Credit and Debit Cards?\n-----------------------------------------------------\nAside from their few similarities, the way these cards function is pretty different. Debit cards pull from the available balance in your checking account, while credit cards use a bank's money to cover purchases with the expectation that you'll pay the debt back later.\nThat means with debit cards, you usually won't be able to spend more money than you have—which can be good for people prone to overspending. But with a credit card, you'll be able to spend up to a preset limit (credit limit) assigned by the bank—which can get expensive if you spend more than you can afford each month.\nThe other major difference between a debit and credit card is the possibility of rewards that comes with using a credit card. To encourage consumers to use their products, credit card issuers offer cash back and reward points to users based on how much they use their cards. Rewards are typically offered for each dollar spent, and over time they can add up. END
 TITLE: How to Maximize Rewards by Switching From Debit to Credit CONTENT: Imagine this: You have $1,000 in your checking account that you've earmarked for this month's spending. Instead of using your debit card to pull cash from your checking account in real time, you use your credit card for the $1,000 in purchases. At the end of the month you then use the $1,000 in your checking account to pay your $1,000 credit card balance—and just like that, you may have racked up several thousand reward points for your spending.\nIf you want to take it a step further, pay attention to the types of credit cards you're using so that you can maximize your rewards in certain categories. Some cards offer amplified rewards earning for different popular categories of spending, like the American Express® Gold Card, which offers 4 points per $1 spent on restaurants, including takeout and delivery, and The Platinum Card® from American Express, which offers 5 points per $1 spent directly with airlines or for hotels booked through the American Express travel portal. Keep in mind, unlike typical credit cards, the American Express® Gold Card only lets you carry a balance for certain charges—not all of them. END
 TITLE: How to Maximize Rewards by Switching From Debit to Credit CONTENT: Who Should Do All Their Spending With a Credit Card?\n----------------------------------------------------\nConsumers who spend responsibly and are not prone to overspending—and who pay their balance in full each month—can benefit from using a credit card instead of using a debit card when possible. Credit cards get expensive when you don't pay your monthly bill in full and your balance gets charged interest—and can defeat the purpose of getting rewards altogether.\nIf you spend within your means and pay your bill off in full each month, you won't have to deal with interest charges and you'll earn valuable rewards for each dollar you spend. END
 TITLE: How to Maximize Rewards by Switching From Debit to Credit CONTENT: Who Should Do All Their Spending With a Debit Card?\n---------------------------------------------------\nStick to your debit card if you have a tendency of impulse buying or overspending. Having a credit card with a high credit limit can be tempting, and for some people, controlling the urge to buy more than you can afford each month can be really difficult.\nIf you're thinking of making the switch from exclusively using your debit card, take inventory of the credit cards you have in your wallet to make sure you are using the card that gives you the most benefits across different categories of spending.\nIf you don't have a credit card, check out Experian CreditMatch™, which uses your FICO® Score☉ to match you with personalized credit card offers. Also consider getting a free copy of your Experian credit report and FICO® Score so you know what lenders will see when they consider you for a new application. END
 TITLE: Visa vs. Mastercard: Which One Is Better? CONTENT: The Difference Between Visa and Mastercard\n------------------------------------------\nWhile there aren't a lot of differences between the two payment networks, there are some aspects where the contrast may be enough to give one an advantage over the other for you.\n### Acceptance\nIn general, Visa and Mastercard are accepted virtually everywhere you shop, both in the U.S. and internationally. So if you're heading abroad for a vacation or business trip, either should work just fine.\nThere are, however, some exceptions to this rule in the U.S. Costco, for instance, accepts only Visa credit cards, although you can use a Mastercard debit card if you have one.\nIn contrast, Kroger has recently stopped accepting Visa credit cards at some of its stores, including several Foods Co. locations in California and Smith's Food & Drug, which has several locations across the Mountain West.\nIf you frequently shop at a store that doesn't accept one of the two, it may be better to get the other. Otherwise, it may be better to pick a card based on its other features instead.\n### Benefits\nVisa offers three levels of benefits: Basic, Signature and Infinite. Its basic level offers standard benefits, including rental car insurance, zero-liability fraud protection and roadside dispatch. With Signature, you'll also get extended warranty protection and travel and emergency assistance services. Finally, Infinite adds return protection, purchase protection and several travel-related insurance benefits.\nMastercard also has three levels: Basic, World and World Elite. The network's basic cards come with perks like price protection, extended warranty protection and zero-liability fraud protection. At the World and World Elite levels, you'll also get a complimentary ShopRunner membership with free two-day shipping at select retailers and some special travel benefits.\nOne thing to keep in mind is that while Visa may offer some benefits that Mastercard doesn't and vice versa, some credit card issuers may choose to offer a benefit that doesn't typically come with other cards on its given network.\n### Card Issuers\nVisa and Mastercard partner with various credit card issuers, so if you want to do business with a specific bank or credit union, you may be limited in your options. As of March 2019, for instance, Chase issues only one Mastercard credit card and 26 Visa credit cards. Also, Citi offers only two Visa credit cards—the consumer and business Costco cards—and the rest are Mastercard.\nSmaller banks and credit unions may also partner with only one or the other. With most other major credit card issuers, however, you may get a mix of the two.\nAlso keep in mind that if you want a Discover or American Express credit card, those card issuers use their own networks, so you won't get a Visa or Mastercard with either.\n### Security\nVisa Checkout and Masterpass have been around for years, allowing cardholders to check out securely when shopping online. And in general, the level of security is the same between the two.\nIn fact, in 2018, Visa and Mastercard announced that they would combine the two services into the same button consumers can click at checkout. Discover and American Express also announced they would join the two payment networks. END
 TITLE: Visa vs. Mastercard: Which One Is Better? CONTENT: Which Payment Network Should You Choose?\n----------------------------------------\nThere's not a lot of contrast between Visa and Mastercard, so for most people, it may not matter which one you pick. Rather, focus on finding the credit card that will give you the most bang for your buck through its rewards program and benefits.\nIf, however, you have a specific need, such as shopping at a specific retailer where only one is accepted, or you want a perk that only one of them offers, it may be better to pick the network that works better for you.\nBefore you apply, consider using Experian CreditMatch™ to compare credit cards based on your credit score. END
 TITLE: How to Maximize Your American Express Points CONTENT: Which American Express Credit Cards Offer Membership Rewards Points?\n--------------------------------------------------------------------\nNot every American Express credit card allows you to earn points with the issuer's flagship program. American Express has several co-branded airline and hotel credit cards that allow you to earn points and miles with their partners, and it also offers a handful of cash back credit cards.\nIf you're looking specifically for a card that offers Membership Rewards points, however, here are your options:\n*   Amex EveryDay® Credit Card\n*   Amex EveryDay® Preferred Credit Card\n*   American Express® Green Card\n*   American Express® Gold Card\n*   The Platinum Card® from American Express\n*   The Business Platinum Card® From American Express\n*   American Express® Business Gold Card\n*   The Blue Business℠ Plus Credit Card From American Express\n*   Business Green Rewards Card From American Express END
 TITLE: How to Maximize Your American Express Points CONTENT: How Can I Use My American Express Points?\n-----------------------------------------\nIf you have a card that earns Membership Rewards points, there are plenty of ways for you to redeem them, including:\n*   **Merchandise**: 0.5 cents per point\n*   **Statement credit**: 0.6 cents per point\n*   **Shop on Amazon**: 0.7 cents per point\n*   **Gift cards**: 0.7 cents to 1 cent per point\n*   **Travel**: 0.75 cents to 1 cent per point\n*   **Donate to charity**: 1 cent per point\n*   **Transfer to travel partners**: Varies based on partner and redemption\nKeep in mind, though, that these redemption rates aren't set in stone. Depending on the specific card you have and the exact redemption, your point value can vary. And if you have more than one American Express card linked to your Membership Rewards program account, the value of the points you receive will be determined using the card that provides the highest point value.\nAs you can see, though, most of the redemption options American Express gives you are valued at less than 1 cent per point, which is the minimum target for most rewards credit cards. So the best ways to use your points include travel if you can get 1 cent per point, charitable donations and transfers to travel partners. END
 TITLE: How to Maximize Your American Express Points CONTENT: Who Are American Express' Travel Partners?\n------------------------------------------\nAs of April 2019, American Express has 18 airline partners and four hotel partners. Here's where you can transfer your points and the ratios they offer:\n*   **Aer Lingus**: 1,000 points to 1,000 Avios\n*   **Aeromexico**: 1,000 points to 1,600 points\n*   **Aeroplan**: 1,000 points to 1,000 miles\n*   **Air France KLM**: 1,000 points to 1,000 miles\n*   **Alitalia**: 1,000 points to 1,000 miles\n*   **All Nippon Airways**: 1,000 points to 1,000 miles\n*   **Asia Miles**: 1,000 points to 1,000 miles\n*   **Avianca LifeMiles**: 1,000 points to 1,000 miles\n*   **British Airways**: 1,000 points to 1,000 Avios\n*   **Delta Air Lines**: 1,000 points to 1,000 miles\n*   **El Al Israel Airlines**: 1,000 points to 20 points\n*   **Emirates**: 1,000 points to 1,000 miles\n*   **Etihad Airways**: 1,000 points to 1,000 miles\n*   **Hawaiian Airlines**: 1,000 points to 1,000 miles\n*   **Iberia Plus**: 1,000 points to 1,000 Avios\n*   **JetBlue Airways**: 250 points to 200 points\n*   **Singapore Airlines**: 1,000 points to 1,000 miles\n*   **Virgin Atlantic Airways**: 1,000 points to 1,000 miles\n*   **Choice Privileges**: 1,000 points to 1,000 points\n*   **Hilton Honors**: 1,000 points to 2,000 points\n*   **Marriott Bonvoy**: 1,000 points to 1,000 points\nFrom time to time, the card issuer may offer a promotion, giving you more points or miles than usual when you make a transfer. If you're planning a trip, especially an international one, check award flights with several of these airlines to see how you can maximize your rewards. END
 TITLE: How to Maximize Your American Express Points CONTENT: Are American Express Points Right for Me?\n-----------------------------------------\nIf you already have a card that offers Membership Rewards points, it's important to understand how to squeeze as much value out of them as you can. By understanding your redemption options and the value they give you, you'll have an easier time getting the most bang for your buck.\nIf you're looking for a new card and considering one that offers Membership Rewards points, it's important to consider how much effort you want to put into maximizing the value of your hard-earned rewards.\nUnfortunately, that can be difficult to do unless you have the time to compare transfer partners and the savviness to make potentially complicated redemptions. If you're looking for a card that offers more valuable redemption options, this rewards program might not be the best fit for you.\nAs you research your options, consider using Experian CreditMatch™ to get cards that are matched to your FICO® credit score. The tool can give you an idea of which cards you might qualify for, giving you more confidence when you apply. END
 TITLE: Priority Pass: What You Need to Know CONTENT: The Priority Pass program has been around since 1992 and has grown to include more than 1,200 airport lounges around the world. The membership-based service gives travelers limited and unlimited access to these lounges and other spaces in over 500 cities across 143 countries.\nWhether you are traveling for business or for pleasure, having a comfortable place to stop and recharge can dramatically improve your traveling experience. Priority Pass makes that a possibility by working with spaces that offer food, drink and comfy atmospheres, along with business needs like printers, WiFi and co-working areas.\nOnce you become a member, you'll receive a membership card and can download the Priority Pass mobile app to use a digital card. Once on your trip, you can use the website or app to locate a lounge, and can access the lounge using your digital or physical membership card. END
 TITLE: Priority Pass: What You Need to Know CONTENT: Priority Pass Memberships\n-------------------------\nGeared toward the frequent flyer, Priority Pass offers several paid memberships that give you free and discounted access to its network of lounges around the world.\n*   **Standard**: $99 annually and $32 for each lounge visit\n*   **Prestige**: $429 annually and free entry for lounge visits\n    You may have also heard about complimentary Priority Pass memberships offered with certain credit cards. The membership offered by credit card issuers is called Priority Pass Select and is not the same as the memberships listed above. The Priority Pass Select membership can be used in the same way as the others.\n*   **Priority Pass Select**: No annual fee and free access to any Priority Pass lounge.\n    While being a paid Priority Pass member might get expensive, the Priority Pass Select membership is a great way to get access to this network of lounges as part of your credit card benefits. Offered as a perk for several luxury reward credit cards, Priority Pass Select is one of the best-known and most cost-effective ways to get global access to airport lounges using a credit card. END
 TITLE: Priority Pass: What You Need to Know CONTENT: Priority Pass Lounge Locations\n------------------------------\nPriority Pass has more than 1,200 lounges currently and adds new locations regularly, according to the company. Within North America, more than 70 airports have Priority Pass lounges (some airports have more than one lounge you can access).\nPriority Pass also offers access to lounges throughout Asia, the Middle East, Africa, Europe, Latin America and the Caribbean. END
 TITLE: Priority Pass: What You Need to Know CONTENT: What if an Airport Doesn't Have a Priority Pass Lounge?\n-------------------------------------------------------\nIn airports where Priority Pass doesn't have a lounge, your membership might be able to get you discounts from participating businesses. At the time of writing this, members could use their Priority Pass member card to get $28 off food and drink at more than a dozen eateries in different airports. (This discount is recorded on your account as equal to one lounge visit.) It also offers 10% off coupons for purchases made with certain airport retailers, including specific duty-free shops and electronic stores.\nFor people with paid Priority Pass memberships, these non-lounge options may be recorded on your account as a lounge visit, so make sure to check with Priority Pass before utilizing them. END
 TITLE: Priority Pass: What You Need to Know CONTENT: What Credit Cards Offer Priority Pass Select?\n---------------------------------------------\nIf you are thinking about applying for a credit card that offers a complimentary Priority Pass Select memberships, here are a few popular ones to consider.\n*   The Platinum Card® from American Express\n*   Chase Sapphire Reserve®\n*   The Luxury Card™ Mastercard® Gold Card™\n*   The Luxury Card™ Mastercard® Black Card™\n*   Hilton Honors American Express Surpass® Card (Comes with 10 complimentary visits to Priority Pass lounges)\nTo check out other rewards credit cards, you can browse through Experian's credit card marketplace to find the card that is right for you. And for more information about using a credit card to get airport lounge access, check out this story. END
 TITLE: Do You Need Good Credit to Finance a Motorcycle? CONTENT: You'll have many borrowing options in front of you when buying a motorcycle, but there are three methods you should explore first: Taking out an auto loan, securing a personal loan or getting financed by a dealer. The borrowing process differs for each, and they may even consider your credit in different ways.\nLenders may use different credit scoring models when considering your application. There are even credit scoring models specifically formulated for use by auto lenders. Here are some of the most popular credit scoring models you're likely to encounter when buying a motorcycle:\n*   **FICO® Score☉ 8 and 9**: These are generic scoring models. They're not tailored to auto loans, but an auto loan or personal loan lender might rely on this score when reviewing your loan application.\n*   **FICO® Auto Scores**: Generic FICO® Scores serve as the foundation for these scores, which are designed with auto lenders in mind. A FICO® Auto Score can help provide a more accurate forecast of a borrower's ability to make timely payments on an auto loan.\n*   **VantageScore® 3 and 4**: This scoring model is produced by VantageScore®, a credit scoring agency founded by the three major credit bureaus (Experian, TransUnion and Equifax). The VantageScore® differs slightly from the FICO® Score, but is also used by many lenders.\nBoth the generic FICO® Score and the VantageScore use a scoring range of 300 to 850, with 300 being the lowest score and 850 being the highest score. The FICO® Auto Score range goes from 250 to 900.\nWhen going over your motorcycle loan application, a lender is free to use whatever credit scoring model it prefers to decide the terms and APR of the loan. In fact, the lender might even look at several credit scores. Therefore, the effect of your credit score on your loan application can differ from lender to lender. If you seek financing through a motorcycle dealer, it might send your application to several lenders, each of which might use a different credit scoring model.\nIt might sound complicated, but remember that most credit scoring models consider factors similarly—so good credit behavior that lifts your FICO® 8 score is likely to do the same to your FICO Auto Score 8, all else being equal. No matter the model, however, a low credit score might result in a high APR, a larger required down payment, fewer lending choices and even rejection of your loan application. END
 TITLE: Do You Need Good Credit to Finance a Motorcycle? CONTENT: What Else Do Motorcycle Lenders Look at to Determine Financing?\n---------------------------------------------------------------\nOther than your credit score, a lender will consider these factors when reviewing your application for a motorcycle loan:\n*   **Credit history**: A lender checks your credit history by pulling your credit report. Information in the report includes how much debt you have, how long you've had credit and how often you pay bills on time.\n*   **Debt-to-income ratio**: This ratio weighs how much debt you owe each month against how much monthly income you have.\n*   **Down payment**: This is the amount of money you offer upfront when you're taking out a loan. For instance, you might put down $3,000 when you're buying a $15,000 motorcycle. A bigger down payment reduces the amount you need to borrow and can mean better terms on a loan.\n*   **Loan total**: This refers to how much money you're borrowing after subtracting the down payment.\n*   **Loan term**: This is the number of months you're given to pay off the loan, such as 36 or 48 months.\nA lender also will evaluate specifics about the financed motorcycle. Since the motorcycle serves as collateral on the loan, the lender will want to know some details about it, including:\n*   **Price of the motorcycle**: How much are you paying for your new ride? Is it $4,000 or $40,000?\n*   **Value of the motorcycle**: A lender will compare how much the bike is worth and how much you're paying for it. This math will determine whether you're paying a fair price.\n*   **Age of the motorcycle**: Are you purchasing a new or used bike? A new motorcycle might cost more, but it's also more likely to stand up to wear and tear than a used motorcycle is. On the other hand, a used motorcycle typically costs less than a comparable new motorcycle.\n*   **Trade-in**: Are you swapping an old motorcycle for a new one? If so, your bike's trade-in value will figure into the lending equation. END
 TITLE: Do You Need Good Credit to Finance a Motorcycle? CONTENT: How to Improve Your Score Before Applying for a Motorcycle Loan\n---------------------------------------------------------------\nSo, you've picked out the motorcycle you want to buy and you've settled on getting a loan to pay for it. What should you do before submitting the application? Here are four steps:\n1.  Check your credit report. Read your credit reports from all three credit reporting agencies (Experian, TransUnion and Equifax) to ensure that all the information there is accurate and up to date.\n2.  Look at your credit scores. If you know where your scores stand, you can take action to improve them and perhaps improve the odds of getting better loan terms.\n3.  Reduce the amount of debt you have. One of the key factors in computing your credit score is your credit utilization ratio. This takes the amount of credit card debt you have, divides it by your overall credit limit and multiplies it by 100 to get a percentage. Lenders usually want to see a credit utilization ratio of 30% or less.\n4.  Pay your bills on time. Lenders look closely at your payment history when assessing your loan application. They like to see a long record that's full of on-time payments and lacking red flags like bankruptcy or default. Your payment history is the most important factor in most scoring models and a spotless record can help lift your credit score. END
 TITLE: What Is a Firm Offer of Credit and Why Does It Matter? CONTENT: Prequalified vs. Preapproved\n----------------------------\nGetting prequalified and preapproved are two different processes, one initiated by you and the other initiated by a lender.\n**Prequalification** is when you (the consumer) agree to provide your credit information to a lender as you shop for credit offers, such as a credit card or loan. Prequalification does not require a firm offer of credit.\n**Preapproval** is when a lender \"prescreens\" you and independently determines whether you meet their requirements for credit. If you do, the lender will send you a preapproved offer. If you decide you want to formally apply for and accept the loan or credit card from the lender, the terms must match the original offer—this is the firm offer of credit.\nFor a preapproval, lenders use a behind-the-scenes prescreening process to determine if they would like to extend a credit offer based on your credit profile, whether you are an existing customer, where you live and other factors. Lenders also determine what kinds of credit offers, such as a cash back credit card or low interest credit card, may be most appealing to you. All of these offers are governed by the Fair Credit Reporting Act (FCRA).\n> Find the best credit cards in Experian CreditMatch™. END
 TITLE: What Is a Firm Offer of Credit and Why Does It Matter? CONTENT: Knowing a lender's obligations under the FCRA can help you determine whether a credit offer is truly worth applying for. Under the law, lenders that initiate a prescreen are required to:\n*   Provide notices to consumers who are offered credit based on the lender's preapproved list.\n*   Maintain records of the prescreened lists.\n*   Allow consumers to opt out of prescreened offers.\n*   Extend firm offers of credit to consumers who pass the lender's prescreening.\nWhat this means for you is that unless your credit profile changes dramatically from the time the lender reviews it and the time you apply, the lender is required to extend the firm offer of credit outlined in the offer. END
 TITLE: What Is a Firm Offer of Credit and Why Does It Matter? CONTENT: How Do Preapproval and Prequalification Offers Impact My Credit Score?\n----------------------------------------------------------------------\nBoth prequalification and preapproval will show up on your credit report as soft inquiries, which do not impact your credit scores.\nOnce you formally submit an application or accept a new line of credit, a hard inquiry is made on your credit file, which is added to your credit report and has an impact to your credit scores. The impact is minimal unless you are applying for multiple accounts all at once.\nTypically, a hard inquiry subtracts a few points from your credit scores, but usually only for a year, depending on the credit scoring model. You can learn more about the difference between hard and soft inquiries here. END
 TITLE: What Is a Firm Offer of Credit and Why Does It Matter? CONTENT: > Find the best personal loans in Experian CreditMatch™.\nHow to Shop for Credit Cards and Loans\n--------------------------------------\nHere are three ways to shop for a credit card or loan:\n1.  **Use a credit card or personal loan comparison** tool to see which cards or loans you are more likely to get approved for and how the cards and loans stack up with interest rates, fees, rewards, cash back and other options.\n2.  **Respond to a lender's credit card or loan offer.** You have met their initial prescreen requirements, so if the offer meets your needs, your credit profile has not changed and your income can be verified, you will be approved for the card.\n3.  **Chat with your bank** about the credit products they offer that you could qualify for.\nRead more about the 6 steps to finding the best credit card.  \nCan You Opt Out of Credit Card and Loan Offers?\n-----------------------------------------------\nYes, you can opt out of unsolicited credit offers for a five-year period or permanently by calling the toll-free number 1-888-5-OPT-OUT (1-888-567-8688) or visiting www.optoutprescreen.com.\nChoosing to opt out of this list should stop you from receiving any prescreened offers. If you decide to opt out, you may need to provide your Social Security number, date of birth and your home telephone number. If you change your mind, you can call the same number or site and request to opt back in. END
 TITLE: What Is a Firm Offer of Credit and Why Does It Matter? CONTENT: Can You Opt Out of Credit Card and Loan Offers?\n-----------------------------------------------\nYes, you can opt out of unsolicited credit offers for a five-year period or permanently by calling the toll-free number 1-888-5-OPT-OUT (1-888-567-8688) or visiting www.optoutprescreen.com.\nChoosing to opt out of this list should stop you from receiving any prescreened offers. If you decide to opt out, you may need to provide your Social Security number, date of birth and your home telephone number. If you change your mind, you can call the same number or site and request to opt back in. END
 TITLE: Does Your Credit Score Go Up When a Default Is Removed? CONTENT: The Different Types of Defaults on Your Credit Report\n-----------------------------------------------------\nDefault typically happens when you miss multiple payments on a debt. Usually, after several attempts to contact you and work out a solution, your creditor will determine that you're defaulting on payment. Your account will then be transferred to a collections department or sold to a collections agency.\nThe timeframe and consequences can vary, but here's an overview of common types of default:\n*   **Mortgage**: Default generally begins after 30 days of nonpayment. After three to six months of missed payments, a mortgage lender will likely initiate the foreclosure process and ultimately attempt to sell the home.\n*   **Auto loan**: For some lenders, an auto loan can go into default when you're as little as 30 days late on payment. Once you're in default, the lender can repossess the vehicle and sell it at auction.\n*   **Unsecured loan**: Default on an unsecured loan (one that isn't backed by collateral) can happen after 30 to 90 days of missed payments, but lenders may use differing timelines. Default will typically result in the debt being transferred to a collection agency, and you may be sued in an attempt to get payment for the debt.\n*   **Credit card**: Six months of nonpayment on a credit card usually results in a charge-off, at which point your debt is sold to a collection agency.\n*   **Secured credit card**: If you default on your payment, the creditor can use your deposit to cover the balance due. If the deposit doesn't cover your bill, the debt could be charged off. Keep in mind that defaulting has credit consequences even if the deposit fully covers your outstanding balance.\n*   **Student loans**: How long it takes to default on a student loan varies based on the type of loan as well as the lender or loan servicer. The default process for private student loans could begin as soon as you miss one monthly payment, and result in the loan being charged off after a certain period of time. Federal loans go into default once you're nine months late on your student loan payments, and may result in wage garnishment and tax refund withholding. END
 TITLE: Does Your Credit Score Go Up When a Default Is Removed? CONTENT: How Can Disputing a Default Impact Your Credit Score?\n-----------------------------------------------------\nFiling a dispute on your credit report does not hurt your credit scores. But filing a dispute doesn't guarantee you'll get information removed. The dispute process is only meant to remove incorrect information, which means it will not remove a default, missed debt payment, charge-off, collection account or any other information that's recorded accurately.\nIf you find inaccurate information on your credit file, filing a dispute could have it removed. Removing a default or other inaccurate information that's hurting your scores isn't guaranteed to make a huge improvement, however, since other factors are considered in your score calculation. END
 TITLE: Does Your Credit Score Go Up When a Default Is Removed? CONTENT: How Does a Removed Default Account Impact Your Credit Score?\n------------------------------------------------------------\nWhen a default first shows up on your credit file, you'll likely see a big drop in your scores. That's because the more recent negative information is, the bigger the impact to your scores. The events leading up to the default, including missed payments, will also contribute to credit score harm.\nOver time, the impact of a default on your scores will lessen. Like all negative information, the default will naturally drop off your credit file after a period of time, at which point you might see another minor increase in your scores.\nDefault will remain on your credit reports and be factored into your scores for seven years from the month you stopped making payments on the debt. In the meantime, practicing healthy credit habits can help you rebuild your credit and recover from the default. END
 TITLE: Does Your Credit Score Go Up When a Default Is Removed? CONTENT: How to Avoid Defaulting on Loans in the Future\n----------------------------------------------\nEven if you can't keep up on a bill payment, there may be ways to prevent default. If you're proactive in exploring your options, you could potentially avoid the fees, damage to your credit, or loss of property that can happen as a result of default.\nHere are some preventive measures to consider:\n*   **Reach out to your lender.** Communicate with your creditor before you fall behind. Your lender may be more flexible if you reach out while your account is still in good standing, and you could potentially work out a modified repayment plan that fits your budget and prevents you from falling behind.\n*   **Ask about deferment.** If you can't afford to pay much, or anything toward your debt, ask your lender about getting payments temporarily deferred or even suspended through a forbearance plan.\n*   **Consolidate debt.** If your credit is in good standing, or if it improved since you took on your debt, you may be able to consolidate your debt and avoid falling behind by taking out a new loan with more affordable payments. You can use Experian CreditMatch™ to find a debt consolidation loan that works for you. END
 TITLE: Does Your Credit Score Go Up When a Default Is Removed? CONTENT: Rebuilding Your Credit\n----------------------\nNegative information, including defaults, on your credit reports can bring down your credit scores. Defaults naturally are removed from credit reports after seven years, but can be removed earlier if they are determined to be inaccurate. The removal of a default can improve your scores, but if you want a strong credit file over the long haul, you'll need to add positive information too.\nSteps you can take to build strong credit include paying bills on time every month, keeping your debt balances low and taking care of any past-due accounts or charge-offs. Reviewing your credit report and scores can also help you find other opportunities for improvement. END
 TITLE: What Is Account Re-Aging? CONTENT: Does Re-Aging Debt Impact Your Credit Report?\n---------------------------------------------\nThe length of time that negative items stay on your credit reports depends on when they first appeared on your report—not the debt's statute of limitations.\nYou may read or hear about re-aging in reference to a creditor or collection agency \"re-aging your account\" so it stays on your credit report longer, but that should never happen.\nMost negative items can stay on your credit reports for up to seven years—or, if there is a series of late payments that leads to your account being closed, seven years after the initial late payment in that series. This is also called the date of first delinquency on an account.\nThe date of first delinquency never changes, which is why the length of time a negative item can appear on your credit report won't be extended. Even if you make a payment on the account or the debt is sold or transferred to a new collection agency, federal law prohibits collection agencies from changing the original delinquency date of the debt. END
 TITLE: What Is Account Re-Aging? CONTENT: What Is the Statute of Limitations on Debt?\n-------------------------------------------\nThe statute of limitations on debt refers to the period of time during which a creditor or debt collector can legally file a lawsuit against you to try to collect an unpaid debt. When creditors sue you for an unpaid debt, they may be able to win a court judgment that allows them to garnish your wages, take money from your bank account or place a lien on your property.\nThe Fair Debt Collections Practices Act (FDCPA) and state laws specify a debt's statute of limitations. This date can vary depending on the state and the type of debt or agreement—a written versus oral contract, for example. In many states, the statute of limitations for debts is three to six years, and the timeline generally starts when you first miss a payment.\nHowever, the statute of limitations doesn't affect how long information remains in your credit report. A debt that's outside the statute of limitations can still appear on your credit reports, and vice versa—a debt that's fallen off your credit reports may still be within the statute of limitations.\nSome people also incorrectly assume that once the statute of limitations is passed, they don't owe the debt. In fact, you might still owe the debt, and creditors can still make attempts to collect it. Creditors may even try to sue you for debts even after the statute of limitations has expired. But if a creditor sues you, you can appear in court, show the judge proof that the statute of limitations has passed, and the judge could dismiss the case. END
 TITLE: What Is Account Re-Aging? CONTENT: How to Determine Your Statute of Limitations\n--------------------------------------------\nWhile you can find your state's statute of limitations online, figuring out which state's rules apply to your account isn't always straightforward.\nThe applicable time period could depend on the state named in your contract, the state where the creditor is based or the state where you live. But generally, the state where you live or that's specified in your contract will apply to the debt. If they're different, the court may use the shorter time period. END
 TITLE: What Is Account Re-Aging? CONTENT: A Lesser-Known Usage of \"Account Re-Aging\"\n------------------------------------------\nWhile account re-aging generally refers to an illegal change in the date of first delinquency, the term is also sometimes used to mean something completely different.\nIf you sign up for a debt management plan (DMP) with a nonprofit credit counseling agency, the counselor may negotiate with your creditors on your behalf. Part of the negotiation may be to waive late fees and bring your past-due accounts current, which the agency may call \"re-aging\" your accounts.\nBringing an account current can be especially helpful if you've fallen far behind on the bills and can't afford to pay the full past-due balance. Now, your monthly payments will be on-time and can help you build credit.\nHowever, even in this case, the record of your previous late payments won't be changed or removed. You'll still need to wait seven years for those negative marks to fall off your credit reports. END
 TITLE: How Long Do Charge-Offs Stay on Your Credit Report? CONTENT: What Is a Charge-Off?\n---------------------\nA charge-off appears on your credit report when a creditor, after trying and failing to get you to repay a debt, abandons hope of collecting what's owed and closes your account. A charge-off is a derogatory entry in your credit report—a serious negative event—and can bring down your credit scores and limit your eligibility to get new loans or credit.\nA charge-off does not forgive the debt. You are still legally obligated to pay the amount owed. Creditors often sell debts connected to charged-off accounts to collections agencies. If they do, the outstanding balance listed in the charge-off entry on your credit report changes to $0, and a new collections entry appears on your credit report, listing the outstanding balance. This indicates you must deal with the collections agency instead of the original lender to settle the debt. END
 TITLE: How Long Do Charge-Offs Stay on Your Credit Report? CONTENT: How Much Does a Charge-Off Affect Your Credit Score?\n----------------------------------------------------\nAs with any other negative entry on your credit report, the number of credit score points a charge-off will cost you depends on the scoring system used (FICO® Score☉ or VantageScore®, for instance), what your score was before the entry appeared and how many other negative entries already appear on your credit report.\nThe appearance of a charge-off on your credit report might not actually lower your score by much, but only because you would have have acquired many other negative entries on the way to getting a charge-off. The charge-off itself is simply the cherry on top. Late and missed payments do more damage to your credit scores than any other single factor: The first payment that's 30 days late often has the most significant impact, and your score suffers more every month the bill remains unpaid. Since a charge-off typically appears after six consecutive months of score reductions due to missed payments, your score may be so degraded by then that there aren't a lot of points left to lose. END
 TITLE: How Long Do Charge-Offs Stay on Your Credit Report? CONTENT: How to Remove a Charge-Off\n--------------------------\nA charge-off stays on your credit report for seven years after the date the account in question first went delinquent. (If the charge-off first appears after six months of delinquency, it will remain on your credit report for six and a half years.) There is nothing you can do to get a legitimate charge-off entry removed from your credit report.\nIf a charge-off is reported inaccurately, or if it fails to \"fall off\" your credit report after seven years, you can file a dispute with Experian or one of the other national credit bureaus to have it removed from your credit reports. END
 TITLE: How Long Do Charge-Offs Stay on Your Credit Report? CONTENT: Lasting Impact\n--------------\nThe negative effects a charge-off has on your credit score will fade over time, so it may be possible to rebuild your credit score considerably during the time that a charge-off remains on your credit report—a pursuit that's well worth the effort. Even as your credit scores increase, however, you may find that some lenders consider the presence of a charge-off on a credit report a deal-breaker when it comes to issuing loans or credit—a situation that will ease once the charge-off disappears from your credit report. For this reason alone, a charge-off is something you should make every effort to avoid. END
 TITLE: What Is a Charge-Off? CONTENT: What Does a Charge-Off Mean on Your Credit Report?\n--------------------------------------------------\nCreditors typically charge off accounts after they've been delinquent—gone without any scheduled payments—for six months. After the first month's delinquency, the account entry will move from the \"Accounts in Good Standing\" section of your credit report to a section titled \"Negative Items\" or \"Negative Accounts.\" Its entry will indicate the outstanding balance on the account and how long it has gone unpaid in 30-day increments up to 180 days. If the creditor decides after 180 days to charge off the account, its entry and the outstanding balance will still appear on your credit report, but it will be noted as charged off.\nIf the creditor subsequently sells your debt to a collection agency, the balance due on the charged-off account will change to zero, but the charged-off account will remain on your credit report for seven years. At that point there's nothing you can do to remove it unless you can prove the entry is inaccurate.\nNote that a charge-off does not mean your debt is forgiven. You are still legally responsible for repaying the outstanding amount. As long as the account entry is designated as a charge-off and displays an outstanding balance, you can contact the creditor to make payment. Doing so will change the account designation from \"Charge-Off\" to \"Paid Charge-Off.\" The listing will still remain on your credit report for seven years. Paid charge-offs are still considered derogatory entries on your credit report, but some lenders view them as less negative than unpaid charge-offs. END
 TITLE: What Is a Charge-Off? CONTENT: The Difference Between a Charge-Off and Collections\n---------------------------------------------------\nOnce a creditor has charged off an account, it often sells the debt to a third-party collection agency, which then takes over efforts to collect what's owed. If this happens to you, two changes will appear on your credit report: The balance owed on the charged-off account will change to zero, and a new entry will appear in the credit report in a section headed \"Collections.\" The collections entry—yet another derogatory item in your credit file, which may cause further incremental reductions in credit score—will include contact information for the collection agency.\nYou'll probably know about these changes long before you see a credit report, because you will likely be bombarded with letters and phone calls. Collection agencies are notoriously aggressive and relentless in pursuit of their money—and in fact, the debt you once owed to your creditor is now owed to the agency. Any effort to settle the debt will have to be arranged through them. END
 TITLE: What Is a Charge-Off? CONTENT: Should You Pay Charged-Off Accounts?\n------------------------------------\nThe outstanding balance on a charge-off account is still your debt, and you are legally responsible to pay it—to the original creditor or the agency that buys the debt. Furthermore, lenders who see unpaid charge-offs or collections may question your willingness and ability to repay future debts. Some will likely consider any charge-off grounds for declining a credit application, but some lenders will view paid charge-offs more favorably than unpaid accounts. END
 TITLE: What Is a Charge-Off? CONTENT: How Does a Charge-Off Affect Your Credit Score?\n-----------------------------------------------\nLate and missed payments hurt your credit scores more than any other single factor, and your scores suffer more every month a bill remains unpaid: A payment that's 30 days late hurts your score pretty significantly, and the damage gets worse if the bill remains unpaid after 60 days, 90 days and so on. A charge-off will lower your credit score, but it typically occurs only after six successive months of delinquency-related score reductions, so your score is likely in pretty rough shape by then anyway. As with any negative entry on your credit report, the exact number of points you'll lose depends on the scoring system used (FICO® Score☉ or VantageScore, for instance), what your score was before the entry appeared, and how many other negative entries already appear on your credit report.\nYou should do your best to satisfy all debts you owe, but paying off charge-offs and collections likely won't benefit your credit score much. The negative impact to your scores will ease over time, and credit scores will slowly recover over the space of several years.\nSo if you want to raise your credit scores—which may be necessary to get lenders to even consider reviewing an application from you—you're better off using available funds to pay down debt on open accounts before using them to settle charge-offs or collections. END
 TITLE: What Is a Charge-Off? CONTENT: How to Dispute a Charge-Off\n---------------------------\nIf your credit report contains an inaccurate listing of a charge-off account, or if a legitimate charge-off entry remains on your credit report for more than seven years after the account first went delinquent, you can contact Experian to dispute the entry. Once you've provided necessary documentation, Experian will correct the entry and notify the other national credit bureaus (Equifax and TransUnion) to correct their records as well.\nThe best way to handle charge-off accounts is to pay your bills on time every month and avoid getting them in the first place. But if you get a charge-off on your credit report, it'll likely take several years for your credit report to fully recover. You can use that time to work on improving your credit score in other ways. Be patient and persistent, and your credit should improve. END
 TITLE: Should You Get a Cosigner on a Car Loan? CONTENT: What Is a Cosigner?\n-------------------\nA cosigner applies for a loan with you, allowing lenders to use their credit history and other financial details as part of their decision process. They take on joint responsibility for your loan, are listed with you on any financing agreement, and are obligated to make payments if you can't.\nYour cosigner will likely need a credit score of 670 or above, along with sufficient income, to qualify. Lenders use the cosigner's income to calculate their debt-to-income ratio, which determines whether they can afford the monthly car payments. Even if you plan to pay the loan without ever asking your cosigner for assistance, the lender wants to make sure that the person who is guaranteeing the agreement is really in a position to do that. END
 TITLE: Should You Get a Cosigner on a Car Loan? CONTENT: Is a Cosigner Always an Option?\n-------------------------------\nNot all lenders will give you the option of having a cosigner, but many offer it as a way to make financing viable for more borrowers. You can be denied a loan for a number of reasons, including your credit score and history, as well as your income and other factors.\nIf you're fresh out of college and just started your first job, your salary may be relatively low, especially when lenders factor in any other debts (including student loans) you might be carrying. A cosigner can help you meet approval requirements and not only buy a car, but build your own credit history as well.\nIf you think you'll need someone to cosign a loan with you, it's wise to call around to a few dealerships, banks and auto lenders to find out if they allow cosigners. That way, you can focus your search and loan application processes on lenders you know will work with you and your cosigner. END
 TITLE: Should You Get a Cosigner on a Car Loan? CONTENT: Pros and Cons of Buying a Car With a Cosigner\n---------------------------------------------\nA cosigner can help you get financing for a new car, but it's a big decision and it's not right for everyone. Consider the following pros and cons as you weigh your car-buying options: END
 TITLE: Should You Get a Cosigner on a Car Loan? CONTENT: The Cosigning Process\n---------------------\nThe first step in the cosigning process is choosing someone to be your cosigner. You'll want to ask someone you trust and who has good money management habits. Since your cosigner should have a relatively high credit score, think about who you know that is responsible with their finances. For instance, if you know your best friend makes a habit of carrying little to no debt and paying their bills on time, they might be a good candidate.\nOf course, cosigning a loan is a big ask, and even someone who is close to you may be reluctant to agree. Before you approach them, gather all of the information you can about the lender, the loan and the type of vehicle you want to buy. Showing that you've already put a lot of thought into the process may reassure them that you're committed to making your payments on time and protecting both your credit scores.\nAgain, it's a good idea to talk through any concerns they have, as well as how you'd handle any worst-case scenarios. Do you have a few months of payments in savings already in case you lose your job or can't work for a period of time? Is your cosigner willing and able to make payments on your behalf if needed to help you avoid default? Having a game plan will help you deal quickly with any emergencies and avoid any negative outcomes for either of you.\nOnce you're ready to apply, your cosigner will need to authorize a credit check and provide other information to the lender as well. If you are applying over the phone, they may need to get on the line with you. For in-person applications, they may need to be present as well. END
 TITLE: Should You Get a Cosigner on a Car Loan? CONTENT: How to Raise Your Credit Score for Future Car Loans\n---------------------------------------------------\nIn an ideal scenario, you'd be able to qualify for an auto loan without a cosigner. But asking a trusted relative or friend to vouch for you can help you purchase a vehicle you need to get to work, which will allow you to steadily build your credit profile and grow your income—two major factors in ultimately qualifying for financing on your own.\nThere are other ways to build your credit as well, including:\n*   Paying down other debts, such as credit cards or personal loans\n*   Taking care of any past-due accounts and charge-offs\n*   Making sure all bills are paid on time\n*   Limiting the number of new credit cards and loans you open\nSaving up for a down payment on a car can also help you qualify, and it reduces the size of the loan you'll need and the total amount of interest you'll pay. You can set a savings goal for a new car each month so that you'll have a sizable down payment by the time you're ready to buy another car. The bigger your down payment, the smaller your loan will be, which has numerous benefits, including a lower monthly payment.\nAs you prepare to apply for a car loan, it's important to make sure you understand what's in your credit file. Visit AnnualCreditReport.com to get a free copy of your credit report from all three credit bureaus (Experian, TransUnion and Equifax). You can sign up to view your credit score for free through Experian as well. Experian also offers free credit monitoring, which alerts you anytime your credit score or account balances change. This gives you insight into your credit at all times, giving you more control as you focus on raising your score.\nIf you feel your credit score needs a lift, consider signing up for Experian Boost™† , which can help raise the credit scores based on your Experian credit report instantly by including bill payment history for your utility, cellphone and streaming accounts. END
 TITLE: How Do You Check Your Credit Score? CONTENT: How to Check Your Credit Scores\n-------------------------------\nThere are a few ways to check your credit scores:\n1.  **Visit a free credit scoring website.** Numerous websites offer free credit scores; just pay attention to the terms before you sign up. Some free sites offer educational scores that aim to give you an understanding of how you're doing credit-wise. You can obtain your free FICO® Score through Experian.\n2.  **Check with your credit card issuer or lender.** Many credit card and car loan companies offer complimentary credit scores that you can check by logging into your account online or receiving on your monthly statement. Typically, you have to opt in to receive the number.\n3.  **Visit a nonprofit credit counselor.** Credit counselors can often pull your scores for free and go over the details with you. To find one, check with the National Foundation for Credit Counseling. END
 TITLE: How Do You Check Your Credit Score? CONTENT: What Do Credit Scores Mean?\n---------------------------\nBecause there are so many credit scoring models in existence, you likely have multiple scores. If you pull your score from one site or product, it will likely be slightly different from one you find through another product.\nSo don't get hung up on one particular score or even the exact number. Instead, pay attention to what range you fall in. Most websites and card issuers will offer some context behind the score in addition to the number.\nThat information will typically include where you stand and whether your score is poor, fair, good, very good or exceptional. You will also likely find information about why your score is what it is. Your score range can help you understand how lenders view your creditworthiness and what types of credit products you're likely to be approved for. END
 TITLE: How Do You Check Your Credit Score? CONTENT: What Affects My Credit Scores?\n------------------------------\nIt's important to understand the factors that go into determining your credit scores so you know how to improve them if necessary. For the FICO® Score, the credit score version you will receive through Experian, there are five main factors that impact your score. They are all weighted differently:\n*   **Payment history**: Your payment history—how regularly you pay your bills on time—accounts for 35% of your FICO® Score. Late or missed payments can negatively affect your FICO® Score, while a pattern of making payments on time is the best way to keep it high.\n*   **Amount of debt**: The amount of available debt you're using, referred to as your credit utilization ratio, accounts for 30% of your score. This is calculated by dividing how much credit you're using by the total amount of credit available to you. So if you have three credit cards with a combined credit limit of $10,000, and you have a total combined balance of $3,000 on all three cards, your utilization ratio is 30%. Most experts recommend keeping your ratio below 30%, and for the best scores, below 7%.\n*   **Length of credit history**: How long you've used credit, including your oldest and newest accounts—as well as the average age of all your open accounts—accounts for 15% of your FICO® Score. Generally, the longer you've used credit, the higher your scores.\n*   **Amount of new credit**: The total amount of new credit accounts for 10% of your FICO® Score. This takes into consideration how many accounts you've opened recently and how many recent hard inquiries you have on your credit report. Too many new accounts and inquiries could indicate greater credit risk.\n*   **Credit mix**: The variety of types of credit you're using accounts for 10% of your FICO® Score. If you have different kinds of credit, like credit cards and installment loans, you'll score higher than if you only have one type of credit, such as retail cards.\nWhen you receive your credit score, you should also get some guidelines on your score profile and why your score ranks where it does. This will include information on what's hurting it and what's helping your score, as in the image below:\nThese guidelines will help you figure out what you need to do to maintain a good FICO® Score, and what you need to do to improve it. For example, if bad payment history is one of the reasons your FICO® Score is on the lower side, you should focus on paying your bills on time. Consider automating your payments so you never miss them again. END
 TITLE: How Do You Check Your Credit Score? CONTENT: Does Checking Your Credit Score Lower It?\n-----------------------------------------\nChecking your own credit score is considered a soft inquiry and won't affect your credit score in any way. You can check your score as often as you like and know your credit won't be affected. It's wise to check your credit score regularly, but especially when you are getting ready to apply for new credit.\nIn addition to checking your credit score, you should check your credit report at least once a year to make sure all the information there is correct. If you see something you strongly believe is inaccurate, you can file a dispute with the appropriate credit bureau. END
 TITLE: How to Achieve the Highest Credit Score CONTENT: Why Your Credit Score Matters\n-----------------------------\nLenders and other financial institutions use credit scores to get a snapshot of your overall credit health. While they'll typically consider more than just your credit score in a lending decision, that three-digit number is an important factor because it gives them a quick understanding of how likely you are to repay your debts on time.\nAlso, some auto and homeowners insurance companies use what's called a credit-based insurance score to help determine your monthly rates, although this isn't allowed in every state.\nMost credit scoring systems use a scale that ranges from 300 to 850. There are, however, some credit scoring models that go up to 900 or 950, including industry-specific scores used by certain institutions.\nWorking your way up to an 850 credit score might sound appealing, but it isn't necessary. Simply having a credit score in the upper 700s or low 800s indicates that you're a responsible credit user, and you'll likely qualify for the same terms that you would with a perfect credit score.\nSo instead of shooting for a specific score, focus on the credit score ranges. Here are the ranges for one of the most common scoring models, the FICO® Score☉ : END
 TITLE: How to Achieve the Highest Credit Score CONTENT: What Are the Benefits of Having a High Credit Score?\n----------------------------------------------------\nThere are several reasons to work toward a high credit score, and all of them involve saving money:\n*   **Score lower rates on car loans**: Unless you have enough cash to buy a car outright, you'll likely need to get an auto loan. Having a good credit score can help you secure a loan with the best possible terms. Consumers with the highest credit scores qualify for an average interest rate of 4.2% on a new car, compared with 14.97% for people with the lowest credit scores, according to Experian data.\n*   **Get credit cards with great rewards**: You can qualify for a credit card with just about any type of credit. But the best credit cards in terms of rewards and benefits typically require good to exceptional credit scores.\n*   **Qualify for the lowest rate on a mortgage**: Given the amount of money involved, your mortgage is the loan you'll want to get the lowest interest rate possible on. It's worth putting in the extra work to shop around and negotiate, as even a small percentage increase can cost you tens of thousands of dollars over the life of your loan. Getting your credit ready for a mortgage is an essential step in the homebuying process.\n*   **Negotiate lower interest rates on your credit cards**: If you completely pay off your credit card balance each month, your credit card APR is irrelevant. But if you're carrying a balance, having a great credit score could help your negotiations with your lender to lower your interest rate. Getting a lower interest rate could save you a lot of money.\n*   **Get better insurance rates**: If you're shopping around for homeowners or auto insurance rates, having a great credit score may help you qualify for a lower monthly premium—except in certain states where the practice is banned.\n*   **Refinance your loans to save money**: If you've improved your credit score since you opened one of your loan accounts, you may be able to refinance it at a lower rate and save money. END
 TITLE: How to Achieve the Highest Credit Score CONTENT: How to Get an 800 Credit Score and Above\n----------------------------------------\nYou don't need a perfect credit score, but if you're looking to achieve an 800 credit score or higher, there are some concrete actions you can start taking now. Keep in mind, though, that it takes a long credit history and no derogatory marks on a credit report to establish and maintain a high credit score.\nAs you work toward improving your credit, here are some tips to help you get started:\n*   **Check your credit report and scores**: You can check your credit score with Experian, and get a copy of your credit reports from all three credit reporting agencies once a year through AnnualCreditReport.com or once every 30 days with Experian. With this information in hand, you'll have a better idea of the areas of your credit history you need to address.\n*   **Dispute inaccuracies on your credit report**: While credit report errors aren't common, it is possible a report contains something erroneous or fraudulent. If you find inaccurate information—clerical errors, doubled information or fraud, for instance—file a dispute with the credit reporting agencies.\n*   **Pay on time**: On-time payments carry the most weight in your credit scores, so make it a goal to pay bills on time every month. If you're behind on payments, or have an account in collections, take care of it as quickly as possible.\n*   **Keep your credit card balances low**: Your credit utilization rate, or amount of available credit you're using, is another big factor in your credit score. To figure out your utilization rate, divide your total credit card balances by your total credit limits. A credit utilization rate of 30% or higher can negatively affect your credit score. Generally, keeping a credit card's balance low relative to its credit limit will help improve your credit scores. For the top scores, your utilization rate should be under 6%.\n*   **Avoid new hard inquiries**: Virtually every time you apply for credit, the lender will run a credit check, which results in a hard inquiry on your credit report. Hard inquiries won't stay on your reports for long, but can have a compounding negative effect on your credit score. Not all inquiries are bad, as checking your own credit results in a soft inquiry that does not affect your credit.\n*   **Let negative information fall off your credit reports**: If you have negative information on your credit reports, there may not be much you can do other than wait until it naturally falls off your report. Depending on the information, this can take several years. Keep in mind that new, positive information generally carries more weight than old, negative information. END
 TITLE: How to Achieve the Highest Credit Score CONTENT: Achieving a Great Credit Score Takes Time\n-----------------------------------------\nYou won't achieve above an 800 credit score overnight, so you'll need a lot of patience as you work toward that goal. But as you develop good credit habits, you'll be rewarded as your credit scores respond positively.\nAs your credit scores climb, you'll see savings along the way as lenders view you as a more reliable borrower. END
 TITLE: Does Checking My Credit Lower My Score? CONTENT: What Is a Soft Inquiry?\n-----------------------\nA soft inquiry, sometimes referred to as a soft credit check, can occur for a few reasons, including:\n*   When you check your own credit score\n*   When an employer or landlord runs a credit check with your permission\n*   When a lender runs a credit check to preapprove or prequalify you for an offer\nSoft inquiries don't have an impact on your credit score because you're not officially applying for credit. So when you fill out a form to get prequalified for a mortgage, student loan, personal loan or credit card, there are no strings attached.\nOnce you take the next step and apply, however, the lender will make a hard inquiry, which will show up on your credit report for others to see and can temporarily lower your credit score. END
 TITLE: Does Checking My Credit Lower My Score? CONTENT: What Can Lower Your Credit Score?\n---------------------------------\nWhile checking your own credit score won't change it, there are plenty of other things that can affect your credit score negatively. Here's a quick breakdown of each factor that influences your FICO® Score☉ :\n*   **Payment history**: As long as you make your debt payments on time every month, your payment history, which is the most influential factor in your FICO® Score, will be in good shape. But if one of your payments is 30 days late or more, your credit score can go down. The longer your account is delinquent, the more it can hurt your score. Defaulting on the account can cause severe damage.\n*   **Amounts owed**: Your total debt burden is a factor here, but your credit utilization ratio is more important. Your utilization ratio shows how much of your credit card limits you're using at any given time. If you have a $500 balance on a card with a $1,000 limit, for example, your utilization rate is 50%. A utilization rate above 30% will start to hurt your scores, and the lower your rate, the better. Those with the best credit scores tend to have a utilization rate in the low single digits.\n*   **Length of credit history**: A longer credit history is better for your credit scores. This factor also includes another calculation called the average age of accounts. So even if you've been using credit for, say, 10 years, the average age of your accounts could be much lower, especially if you've recently opened several new accounts. To avoid lowering your average, try to avoid taking on new credit too often.\n*   **Credit mix**: The more types of credit you have—credit cards, personal loans, student loans, auto loans and mortgage loans—the better it can be for your credit. While having just one or two won't necessarily lower your credit score, it could limit your credit potential.\n*   **New credit**: Virtually every time you apply for credit, the lender runs a hard inquiry on your credit report. According to FICO, each new hard inquiry can lower your credit score by as much as five points. If you have multiple hard inquiries in a short period, though, it could have a compounding effect and lower your score even more.\nBecause there are so many variables that go into calculating your credit score, it's impossible to determine exactly how much damage a negative item may cause to your score. But if you notice your credit score drop and are wondering why, look at these areas to find the likely reason. END
 TITLE: Does Checking My Credit Lower My Score? CONTENT: How Often Can You Check Your Credit Score?\n------------------------------------------\nYou can check your credit score as often as you want without hurting your credit, and it's a good idea to do so regularly. At the very minimum, it's a good idea to check before applying for credit, whether it's a home loan, auto loan, credit card or something else.\nWhen you do this, you can help make sure there aren't any problems that could make it difficult to get approved for a new loan or credit account. By checking at least a few months in advance, it can also give you time to address anything that could be hurting your credit score.\nIt's also a good idea to check your credit report at least once a year. While your credit score is a numerical snapshot of your overall credit health, your credit report provides the actual information used to calculate your score.\nAs you check your credit report, look out for anything you don't recognize. If you find something odd, contact the lender to make sure it's legitimate. Sometimes, a lender may operate under a different name and report a name you're not familiar with to the credit bureaus; if you're applying for a car loan, the dealership may submit a credit application to multiple lenders.\nIf you find information you believe is inaccurate or even fraudulent, report it to the credit bureaus.\nYou can get a free credit report from each of the three credit bureaus every 12 months through AnnualCreditReport.com. You can also get a free copy of your Experian credit report online every 30 days. END
 TITLE: Does Checking My Credit Lower My Score? CONTENT: How to Check Your Credit Score\n------------------------------\nHistorically, it's been difficult to get access to your credit score for free. But it's gotten much easier in the past few years.\nFor example, many financial institutions offer free FICO® Score or VantageScore access to their customers for free as a benefit. If you don't have an account with this perk, you can check your FICO® Score through Experian for free. A handful of other services offer this benefit as well.\nKeep in mind that most lenders use your FICO® Score in credit decisions. So if you're looking at a different credit score, it likely isn't the one lenders will see when they do a hard credit check. Even with a FICO® Score, different lenders may use different versions of the score, such as an industry-specific version for certain types of loans. But you'll still have a good idea of where your credit stands. END
 TITLE: Does Checking My Credit Lower My Score? CONTENT: Tips for Improving Your Credit\n------------------------------\nChecking your credit score regularly is essential if you're working on building or rebuilding your credit history. As you look for opportunities to improve your credit, here are some tips to help you get started:\n*   Get caught up on overdue payments, if applicable, and pay all of your debts on time every month going forward.\n*   Keep your credit card balances low—remember, the key is to keep your utilization rate below 30%, but the lower, the better. If you have high balances, focus on paying them down as quickly as possible.\n*   Consider asking a family member to add you as an authorized user on their credit card account. Before they submit the request, however, make sure the account has a positive history that can help improve your credit score.\n*   Avoid applying for new credit unless you need it.\n*   Get credit for paying your utility and phone bills—these payments typically don't get reported to the credit bureaus, but with Experian Boost™† , you can allow Experian to connect your bank accounts and use the data to identify utility and phone payments. Once you verify the accounts, they can be added to your Experian credit file and may help boost your credit score.\nAs you use these tips and other good credit practices, you'll be well on your way to a better credit score. END
 TITLE: Will Debt Relief Hurt My Credit Score? CONTENT: How Does Debt Relief Work?\n--------------------------\nHere is a breakdown of the different plans that fall under the debt relief banner.\n*   **Debt settlement** is a process in which you enlist an outside company to help negotiate and settle your debt with a certain creditor. In exchange for a fee, debt settlement companies will work to lower your overall debt and may negotiate a lump-sum payment with your creditors on your behalf. They will typically ask you to stop making payments to the creditor while they negotiate your settlement, which can hurt your credit. If the company succeeds in reaching a settlement, you will still pay your creditor a portion of your debt, but usually not all of it. In addition to the cost and impacts to your credit, there are tax implications with this method, as forgiven debt is typically reported to the Internal Revenue Service as income.\n*   **Debt management** is an approach that involves enlisting a credit counselor to help you plan and execute a responsible repayment plan. Once a credit counselor reviews your situation, they will help you develop and stick to a plan for managing all your debt. In most cases, debt management plans will outline how much you'll have to pay each month and for how long—and your counselor will hold you accountable for sticking to your plan. Some debt management plans may also require that you not apply for additional credit for a certain period of time and may want to make your payments on your behalf each month. Different from debt settlement, most debt management credit counseling agencies are nonprofits and charge a low monthly fee for their service.\n*   **Debt consolidation** is a method in which you consolidate various debts under one new loan. This allows you to save money on interest over time and can help you streamline repayment. There are two popular ways of consolidating your debt: using a new personal loan or debt consolidation loan to wrap your other debts into one, or using a balance transfer credit card to concentrate all your existing credit card debt onto one card.\n*   **Bankruptcy** is a last resort option that may help you find relief if you are overwhelmed with debt. Declaring bankruptcy is a complex legal process that involves going to court and in many cases requires you enlist the help of an attorney. Once you file for bankruptcy, a court will evaluate your debt and finances and will make sure you've exhausted every option before granting you a bankruptcy discharge. Depending under which chapter you file—Chapter 7 or Chapter 13 are the most common—a discharge will reduce or wipe out some or most of your existing debts and will make it so creditors can not contact you to pursue what you owe them.\nThe objective of each of these methods is to get a handle on your mounting debt by reducing or eliminating your outstanding balances—but that doesn't mean they are all good options. Debt can be stressful, but it is important to do research and understand your options so you don't choose a debt relief method that could hurt you even more in the long run. END
 TITLE: Will Debt Relief Hurt My Credit Score? CONTENT: How Do Debt Relief Plans Affect Credit?\n---------------------------------------\nDebt relief can be good and bad for your credit—it all depends on which method you choose and how far behind you let your debt fall. Ultimately, if you miss payments and let accounts fall past due, your credit score is going to suffer. It's possible to have a lot of debt at one time and still have a good credit score, but the trick is to make sure you manage your repayment responsibly to keep your credit health in check.\nHere are a few ways each of the major debt relief options can affect your credit:\n*   **Debt settlement** is one of the more dangerous debt relief options when it comes to harming your credit score. Debt settlement companies typically ask customers to discontinue payment to creditors while they negotiate on your behalf. Payment history is the most important factor in your credit scores, and if you miss any debt payments, your credit score will take a dip.\n    Debt settlement companies are not chiefly concerned with your credit scores; they focus on lowering or eliminating what you owe. Be cautious when working with a debt settlement company and make sure to work with a reputable firm. You can check with your local consumer protection agency or state attorney general to find out if the company has had any complaints filed against it in the past. Also consider the full effect missing payments could have on your credit history and the tax implications that come with settling debt. Debt settlement should be one of your last options, only after you've tried remedying your debt with less harmful tactics, like debt management or consolidation, or one of the alternative methods mentioned below.\n*   **Debt management** is a great option for someone looking to relieve their debt woes without hurting their credit score. With this method of debt relief, your credit counselor works with your creditors to create a repayment plan that will work for you—and then you stick to it. As long as your repayment goes as planned—meaning you don't miss any payments—your credit score should remain unharmed. Refer to the list of credit counselors approved by the U.S. Justice Department when looking for a counselor in your area.\n*   **Debt consolidation** is a good option for finding some relief from creditors that shouldn't hurt your credit scores if you manage it responsibly. If you end up consolidating your debt with a new loan or credit card, chances are you'll incur a hard inquiry as a result of letting a new lender check your credit for your application. Hard inquiries can ding your credit scores, but the impact is typically small and short-lived. Also be sure to make all your payments on time, as payment history is the most important aspect of your credit scores; even one late or missed payment can bring your score down. And try not to apply for any new credit cards while you work to pay off your current debt.\n*   **Bankruptcy** will severely affect your credit scores and will remain a part of your credit history for seven to 10 years. It will also make obtaining credit in the future \\[difficult. If you're thinking about declaring bankruptcy, make sure to consider all other debt relief to see if your financial woes can be solved using another method.\nMost likely, if you're looking for debt relief options, your credit scores have already suffered in some way. But that doesn't mean it's too late to prevent further damage. Debt relief can be helpful for relieving stress, and also for limiting the lasting damage your credit history could endure if you fall significantly behind on your payments. END
 TITLE: Will Debt Relief Hurt My Credit Score? CONTENT: Alternatives to Debt Relief Plans\n---------------------------------\nIf you're feeling swamped with debt and are looking for other ways to relieve the pressure, there are a few other actions you can consider. These options are alternatives to debt relief and may be good first steps if you're only having issues with one or two creditors, haven't gotten to a point where you are completely overwhelmed with your debt, or think you'll be able to manage your burden on your own. If you give these a try and feel that you need a more serious debt relief option, consider one of the more serious action plans listed above.\n*   **Consider making a balance transfer.** If you're dealing with a lot of high interest credit card debt, you may want to see if you're eligible for a balance transfer at a low interest rate with one of your existing credit cards or a new card. You may get an introductory balance transfer interest rate as low as 0% for a certain period of time (usually up to about 12 months), which will help you avoid interest as you work to pay off your debt. If you can't qualify for a new card, figure out which of your existing cards has the lowest annual percentage rate (APR), and then give the issuer a call to see if they offer a balance transfer option. Moving money from one card with a high APR to another card with a lower APR can save you money over time—as long as you don't continue charging on your cards with higher interest.\n*   **Negotiate with your creditors on your own.** If you're significantly behind on your credit card payments, you can try contacting your card issuers to negotiate a lump-sum payment or adjusted payment plan for a lower amount that you originally owed. The lender in this case lowers the amount owed so they can at least recoup some of what they were owed, instead of none at all. This won't be possible with every lender, and the outcome of this negotiation will vary greatly based on your specific scenario. But it's worth considering, especially because you won't have to pay a third party to do the work for you.\n*   **Seek free credit counseling.** Find a credit counselor or peer who can help you organize your finances and get them under control. Once you find someone who can help, work with them to create an actionable plan and stick to it. Use them to hold you accountable, and make sure to keep accurate and thorough records of all your debt and payments to make sure you're successfully working toward your goals. END
 TITLE: Will Debt Relief Hurt My Credit Score? CONTENT: Next Steps\n----------\nIf you're not sure what your debt situation is and want to find out more about your credit scores and current debt, consider getting a free copy of your credit report and score from Experian to find out what is in your credit file.\nPaying down your debt when you're overwhelmed may seem impossible, but with the right strategy and determination to get back on strong financial footing, it can be within your reach. END
 TITLE: Can I Calculate My Credit Score? CONTENT: How Your Credit Score Is Calculated\n-----------------------------------\nThe calculations used in commercial credit scoring systems such as the FICO® Score☉ and VantageScore® are extremely complex. Credit scoring algorithms, also known as scoring models, analyze the contents of one or more of your credit reports at the three national credit bureaus (Experian, TransUnion and Equifax). The models use highly sophisticated statistical analysis methods to look for patterns of behavior that are associated with failure to repay loans.\nCredit scores are calculated using data in your credit reports, which are updated continually with new information related to your credit activity, including your use of credit cards, payment of loans and credit card accounts as well as any applications for new loans and credit. Credit scores taken a few days apart, and possibly even hours apart, can differ due to updated information such as a missed loan payment.\nBecause your creditors don't necessarily report to all credit bureaus uniformly, your credit reports aren't always exactly the same. But even if they used identical credit report data, different credit scoring models would likely produce different scores because each model uses its own proprietary calculations. The companies that produce credit scoring models revise them every few years to reflect changes in consumer behavior. The specific calculation methods of these formulas are guarded as trade secrets, but scoring companies openly share information on the factors that influence credit scores. END
 TITLE: Can I Calculate My Credit Score? CONTENT: Factors That Affect Your Credit Scores\n--------------------------------------\nFICO® Score and VantageScore calculations treat their relative importance somewhat differently, but the most critical factors that influence credit scores are the following, ranked in order of significance:\n1.  **Payment history for loans and credit cards.** This includes the number and severity of late payments. Late payments will have a greater negative effect on your credit score than any other single factor.\n2.  **Credit utilization.** The total amount of outstanding debt you have relative to your credit limits is also known as your credit utilization ratio, and it plays a major role in determining your scores. To avoid negative effects on your credit scores, experts recommend keeping outstanding balances at or below 30% of each card's borrowing limit, but the lower your utilization, the better.\n3.  **Length of credit history.** Lenders value borrowers with experience handling debt responsibly. A lengthy record of responsible credit usage (with minimal late or missed payments) tends to elevate scores more than a comparably short history of credit usage.\n4.  **Type, number and age of credit accounts.** Generally speaking, a variety of loan types (installment loans as well as revolving credit accounts, for instance) will promote higher credit scores. This \"credit mix\" also speaks to experience with credit management.\n5.  **Number of recent inquiries.** Inquiries are requests from lenders to check your credit report or credit score in connection with a loan application. Statistically speaking, applying for new credit is associated with greater risk of inability to pay bills. This factor typically only reduces credit scores by a handful of points, and its effects are typically reversed within a few months, as long as you continue to pay your bills on time.\n6.  **New credit accounts you've recently opened.** Like credit inquiries, taking on new debt (or potential debt, in the case of a credit card account) is statistically linked to risk of missing payments. And like the impact of credit inquiries, the negative effect of this factor tends to fade within a few months, as long as you keep up with all required payments.\n**Severe derogatory events.** Considered outside the scope of the everyday credit management factors listed above, bankruptcies, foreclosures and vehicle repossessions can have much more severe and lasting negative effects on your credit than any of the other considerations. Apart from causing major drops in your credit score, they signify to many lenders that you are a risky borrower, and they may impair your ability to get new loans or credit for several years. END
 TITLE: Can I Calculate My Credit Score? CONTENT: How to Check Your Credit Scores\n-------------------------------\nWhile it's helpful to keep in mind the factors that affect credit scores, and to avoid behaviors that can hurt them, the best way to keep track of your credit score is to check it regularly. Monitoring helps you track progress toward score improvement, and gives a good sense of how lenders will view you as an applicant.\nIf you check your FICO® Score using Experian's free tools, you'll also receive information about the specific factors in your Experian credit report that are preventing you from getting a higher score. This information can help you better understand your credit profile, and may suggest steps you can take to improve your scores over time.\nWhile it's not possible to crunch the numbers yourself to figure out your credit score at home, it's easy to access your scores as determined by models such as FICO and VantageScore, and to identify behaviors that can help you improve them. END
 TITLE: How Savings Can Impact Your Credit CONTENT: Can a Savings Account Affect Your Credit Score?\n-----------------------------------------------\nCredit scores are developed solely from the information that appears on a consumer credit report. That includes a detailed history of credit cards and loans, as well as bankruptcy filings and any unpaid accounts that are in collections. Your creditors and the courts furnish all that information to the credit reporting agencies—Experian, TransUnion and Equifax.\nSavings and checking accounts are not listed on credit reports because no borrowing or debt is involved. Applying for and opening a savings account won't generate any information that shows up on your credit report, and neither will the deposits and withdrawals you make. Since this information will always be absent from your credit reports, it is not calculated into your credit scores. When you apply for credit with the intention of taking on debt, however, it will trigger an inquiry that will appear on your credit reports and be included in a score. There are two types of inquiries:\n*   **Soft inquiries** are placed on your report when lenders review your credit to preapprove you for a loan or credit card (or when you pull your own credit reports). They are not factored into your credit scores.\n*   **Hard inquiries** appear when a creditor uses your credit report to make a decision after you've applied for credit products. They are calculated into your scores.\nIf you take on debt, money in a savings account can help make sure you make every monthly payment on time and avoid carrying too much debt, which are the two most important credit scoring factors.\n*   **Payment history**: If you don't have sufficient funds left in reserves to pay your loan and credit card bills on time, you will end up with delinquencies on your credit reports. Creditors typically notify the credit reporting agencies that you're behind once payments are 30 days past due. Since payment history is the most important credit scoring factor, late payments can have a serious negative impact.\n*   **Credit utilization rate**: The second-most important scoring factor, credit utilization measures your credit balances against your total credit limit. Not having enough money in savings to deal with unexpected costs can affect your credit if you end up charging up your credit cards to make up the difference. Having a credit card balance at or near the card's credit limit raises your credit utilization rate, and may cause your credit scores to decline as a result. END
 TITLE: How Savings Can Impact Your Credit CONTENT: How a Savings Account Can Indirectly Help Your Credit\n-----------------------------------------------------\nBuilding and keeping money in a savings account is an important step in putting your credit in a healthy place. You'll want to have enough money in an account to use for a crisis, meet your current financial obligations and help your future borrowing prospects, especially obtaining a home loan.\n*   **Cover emergencies**: Money held in an emergency account will enable you to pay for crucial but unanticipated expenses without having to borrow for them. For example, if you need to go to the hospital, you may have to pay thousands of dollars for a deductible before your health insurance kicks in. Using savings can prevent you from having to charge a large bill that would throw your credit utilization ratio off balance.\n*   **Insure current debt**: Savings can give you peace of mind that you'll be able to cover your bills if costs go up or if expected income doesn't come through. If you have a car loan, a savings account will help you make sure those payments always show up on your credit report as on time, even if you lose your job or have other expenses pop up.\n*   **Appease a mortgage lender**: If you're in the market for a home loan, having plenty of cash in a savings account will not just make you more appealing to a lender, it's usually essential. That money serves to lower the lender's risk level. If you can't keep up with the payments in the first few months of buying a home, you could wind up in early foreclosure. Most mortgage lenders will expect you to have at least two months' worth of mortgage payments set aside in a bank account.\nIn addition to socking money away for all the events, planned and unplanned, that come up in your life, familiarize yourself with what appears on a credit report. It will give you the opportunity to address any problems before they get out of control. You can access your Experian credit report for free, and there is no downside to reviewing it frequently. With a recent copy of your credit report, you can compare what you owe to the amount you have set aside. Every so often step back and calculate your net worth by adding up all of your assets and subtracting the total of all of your obligations and debt. You'll want that figure to be positive and grow over time. Savings is a major part of your overall financial well-being, which includes safeguarding your credit. END
 TITLE: Is a Credit Check Required to Rent a Car? CONTENT: When You Might Need a Credit Check to Rent a Car\n------------------------------------------------\nThe policies vary depending on the rental car company and the location where you're renting, but generally, a credit check is only a requirement if you rent a car using a debit card. If you use a credit card, the policies tend to be much more lenient.\nThe idea may be that someone who doesn't have a credit card could have trouble paying for incidental charges, such as a late return, or for damages after an accident. Running a credit check could help the agency ensure the renter has a history of paying bills on time and isn't currently behind on any accounts. END
 TITLE: Is a Credit Check Required to Rent a Car? CONTENT: What Credit Score Do You Need to Rent a Car?\n--------------------------------------------\nCar rental agencies may have a minimum credit score requirement to rent a vehicle. However, they rarely publicize that score requirement.\nIn February 2019, Dollar Car Rental, part of Hertz, announced it would eliminate credit checks and proof of return travel, as well as lower the age restriction, for debit card users. It also revealed that Dollar Car Rental previously had a minimum score requirement of 660.\nOther rental agencies may have a similar score requirement, but many are more concerned with specific types of information in your report rather than the score. For example, having a history of late payments or multiple delinquent accounts could make it harder to rent a car. END
 TITLE: Is a Credit Check Required to Rent a Car? CONTENT: How Renting a Car Impacts Your Credit\n-------------------------------------\nIf the rental agency runs your credit, a hard inquiry could be added to your credit report. Hard inquiries might hurt your credit scores by a few points and typically remain on your credit reports for about 24 months. However, the impact of a single hard inquiry tends to dissipate within a few months.\nGenerally, one hard inquiry won't have a major impact on your scores—it might not impact your scores at all—and you shouldn't let the potential of a hard inquiry keep you from renting a car or opening a new account when you need one.\nIf you're worried about the hard inquiry and you have a credit card but don't want to use it for the rental, you may be able to put your credit card on file to avoid the inquiry and then pay with your debit card when you return the vehicle. END
 TITLE: Is a Credit Check Required to Rent a Car? CONTENT: How to Rent a Car Without a Credit Card\n---------------------------------------\nIf you don't have a credit card, you'll probably be able to rent a car with many car rental agencies using a debit card. And whether or not they perform a credit check, you may need to provide additional documentation and there could be limitations on your rental.\nHere are a few examples of companies' rules and requirements:\n*   You might only be able to use a debit card if it has a Visa, Mastercard or Discover logo.\n*   You might not be able to rent a vehicle with a debit card if you're under 25 years old.\n*   You might not be able to rent certain types of vehicles, such as a luxury or premium car, unless you meet additional requirements.\n*   If you're renting from an airport location, you may need to show proof of your incoming flight and your return flight.\n*   You may need to show additional forms of identification, such as your driver's license plus a passport, utility bill or a different card with your name embossed on it (such as a second debit card or store card with your photo).\n*   A hold could be placed on funds in the checking account that's linked to the debit card you use to rent a car. The hold amount can vary, but could be $200 or a percentage of the total rental amount. You won't be able to use the money while it's being held, so be sure you have enough money in your account to avoid overdrafts. It may take a couple weeks for the funds to be released.\nSometimes you can avoid the hold on funds or additional identification if you join the company's frequent renter program and add your debit card to your account prior to renting.\nAdditionally, be aware that some rental car locations don't accept debit cards or cash at all. If you're booking travel ahead of time, call ahead and make sure the agency's policies won't interfere with your travel plans.\nYou may also want to check your credit reports before renting a car and look for potentially problematic marks, such as several accounts with past-due balances. You can check your Experian credit report for free online. END
 TITLE: Is a Credit Check Required to Rent a Car? CONTENT: Keep an Eye on Your Credit\n--------------------------\nRental car agencies are one of many types of organizations that will check your credit before accepting an application or opening a new account. Even if you don't plan on renting with a debit card soon, you may want to regularly check your credit reports for incorrect information. An account or inquiry you don't recognize could be a sign of identity theft, and learning about the theft early allows you to take action and protect yourself from additional fraud. END
 TITLE: How Applying for Credit Impacts Your Credit Score CONTENT: What Happens to Your Score When You Apply for Credit?\n-----------------------------------------------------\nWhen you apply for a new credit account, you'll authorize the lender to view one or more of your credit reports. This is necessary nearly anytime you apply for a loan, as the lender will need to examine your credit history to determine your creditworthiness. When the lender requests your credit report for the purpose of evaluating a loan application, it's often referred to as a \"hard inquiry\" or a \"hard pull.\"\nEach hard inquiry gets added to your credit report and can have an effect on your credit score. That's because credit scoring models can interpret multiple new inquiries as a sign of possible financial trouble. For example, some people may apply for many new lines of credit when they are having trouble paying their bills or because they are spending more than they can afford.\nThankfully, the credit scoring models consider multiple inquiries in a short period for certain types of loans, such as auto loans and home mortgages, as rate shopping, and will consider them as just a single inquiry. This is to prevent your credit score from suffering when you are really just shopping for the best rate on a single loan.\nHard inquiries are just one of many factors that make up your credit score. With the FICO® Score☉ model commonly used by lenders, your payment history counts for 35% of your score, and your credit utilization, or how much of your available credit you're using, is another 30%. Your length of credit history makes up 15% of your FICO® Score, while your credit mix, or the different types of credit products you have, makes up 10% The number of recent inquiries on your credit report counts for 10% of your credit score, making it a relatively minor factor. Therefore, paying your bills on time and carrying a low amount of debt will be far more important to your credit score than your recent inquiries.\nSoft inquiries, or soft pulls, occur when you view your own credit report or a lender or credit card issuer views your report to preapprove you for a financial product. Insurance companies can also request soft inquiries when approving you for insurance. But regardless of the source of the soft inquiry, it will never affect your credit score. For more information, see \"Hard vs. Soft Inquiries on Your Credit Report,\" END
 TITLE: How Applying for Credit Impacts Your Credit Score CONTENT: How Long Does a Hard Inquiry Stay on Your Credit Report?\n--------------------------------------------------------\nHard inquiries will stay on your credit report for two years, but their effect on your credit score will decrease over time. And after one year, they won't have any effect at all on your FICO® Score. For more information, see \"How Long Do Hard Inquiries Stay on Your Credit Report?\" END
 TITLE: How Applying for Credit Impacts Your Credit Score CONTENT: How to Remove a Hard Inquiry From Your Credit Report\n----------------------------------------------------\nWhile you might want to remove one or more hard inquiries from your credit report, there isn't a way to do so if you originally authorized the inquiry. But if you believe that an inquiry appears on your credit report due to fraud, then you can dispute it with the three main credit bureaus (Experian, TransUnion and Equifax). If your dispute reveals you've been a victim of fraud, then the bureaus should be able to remove the fraudulent inquiry from your reports. END
 TITLE: How Applying for Credit Impacts Your Credit Score CONTENT: How to Minimize the Effect on Your Credit Score When Applying for New Credit\n----------------------------------------------------------------------------\nWhen applying for new credit, there are a few things you can do to reduce the impact of a hard inquiry on your credit score. First, you should take advantage of the rate shopping exception for multiple hard inquiries. With the FICO scoring model, multiple inquiries on the same type of loan made within 45 days are typically treated as a single one, reducing their effect on your score. This is the case for auto loans, home loans and student loans, but it doesn't apply to other forms of credit.\nIt's also important to monitor your credit reports to see how these new inquiries are affecting your credit history. Experian offers a free credit report every 30 days when you sign in, or you can receive one free copy of your credit reports from each of the three bureaus annually at AnnualCreditReport.com. Keeping an eye on your credit reports and scores will help you understand how new credit applications can affect your credit—and give you insight into all the factors that go into creating your credit history. END
 TITLE: Can I Have a Good Credit Report but a Bad Credit Score? CONTENT: What Makes Up a Good Credit Report?\n-----------------------------------\nA good credit report is one that contains evidence that you've borrowed and repaid money responsibly with several lenders. Specifically, that you:\n*   Use a variety of credit cards and loans, and have done so for a few years\n*   Always pay your bills on time\n*   Have repaid loans in full\n*   Consistently carry over little, if any, credit card debt\nJust as important, there a few line items that are absent from a good credit report. These include:\n*   Defaults\n*   Charge-offs\n*   Collection accounts\n*   Liens\n*   Judgments\n*   Bankruptcies\nAnd while you do have to apply for credit products to get them, you don't want your credit reports to indicate a flurry of applications in a short span of time, since it could be interpreted as a sign that you're desperate for money.\nWhen your credit report only lists plenty of appealing activity, you appear to be a low-risk credit customer—and your credit scores will reflect that. That's because past and present behavior is a predictor of future behavior. END
 TITLE: Can I Have a Good Credit Report but a Bad Credit Score? CONTENT: What Is a Good Credit Score?\n----------------------------\nCredit reports are valuable because they show a detailed overview of what you've been doing with loans, credit cards and other debts. But for a quick mathematical snapshot, credit scores come into play. Credit scoring companies take the financial information from your credit report, enter it into their scoring model, and spit out a three-digit number that indicates to lenders what kind of risk you pose as a borrower.\nThere are a number of different models, but the most common are the FICO® and VantageScore® models. Both range from 300 to 850, with higher numbers being preferable. For example, in the FICO® scoring range, scores between 740 and 850 are tops. Learn more about credit scoring ranges.\nAlthough the scoring models assess credit report information differently, the same general rules apply: As long as you have an established pattern of on-time payments with a mix of credit products, a low credit utilization ratio (the amount you owe compared with the amount you can borrow) and no visible credit problems, your scores should be on the high side. END
 TITLE: Can I Have a Good Credit Report but a Bad Credit Score? CONTENT: How Do I Know if My Credit Report Is Hurting My Scores?\n-------------------------------------------------------\nThere are a few types of credit reports that might look good to you on first glance, but actually often translate into poor scores.\n*   **The good . . . and the bad.** The first type of report lists some perfectly managed accounts—but also some negative activity, like late payments, collection accounts and credit card balances that are close to the credit limit. These negative line items can overshadow the positive ones, sinking your scores.\n*   **Inaccurate reports.** Undiscovered mistakes or fraudulent activity may also be in your credit file, hurting your scores. Pull your credit reports on a regular basis to check that all the information is correct. This way you won't be blindsided by scores that are at the bottom of the scale when they should be at the top.\n    If you find fraudulent activity in your report, dispute it with the credit bureaus and consider putting a security freeze on your file if the activity is recent or prevalent. Once the negative information is removed from your report, your scores should see a bump.\n*   **Not enough credit activity.** The other type of surprising bad credit report is the one without enough information in it, also known as a \"thin\" credit file. While you may think your credit is stellar because you only have one credit card and manage it responsibly, having just one account in your credit file is actually a negative to lenders considering you for credit.\nYour credit scores will also be low if the only credit accounts you have are very new. Building an impressive credit history takes time and a wealth of information. END
 TITLE: Can I Have a Good Credit Report but a Bad Credit Score? CONTENT: Credit Scores Change Over Time\n------------------------------\nAnother misperception about reports and scores is that they're static. If you've used an array of credit products and managed them all without a hitch, your scores may be high. That doesn't mean they'll stay that way—and they definitely won't if you stop borrowing and repaying.\nEventually a credit card issuer will close an inactive account, which will impact your credit utilization ratio. Remember, credit scores need sustenance, so you need to feed them with responsible credit activity. You may also not realize that a couple late payments will hurt your score, but they will. In fact, making credit payments on time is the biggest factor in calculating your credit scores.\nIf you have as many credit cards as you want and don't need any loans, you can still positively impact your credit. Add your cell phone and utility bills to your credit report with Experian Boost™† TM†. Then your credit report will show the type of data that is important to lenders: timely payments. They will be factored into your Experian credit scores, which could cause them to rise.\nClearly, you can have a bad credit score with what you presume is a good credit report, so ensure they match up. Just use a mixture of credit products often and responsibly, dispute errors, and deal with high or delinquent debts. In time your scores will be where they ought to be—and you can be certain about how lenders see your creditworthiness. END
 TITLE: Removing Yourself as an Authorized User Could Help Your Credit CONTENT: If you have no credit history, becoming an authorized user on another person's credit card account lets you build credit without having to apply for an account in your own name. You won't be responsible for making payments, but you'll benefit from the account holder's good financial habits.\nIn the best-case scenario, the account holder will make all payments on time. Because payment history accounts for 35% of your FICO® Score☉ —the largest single factor—this is important to boosting your credit. They'll also ideally have a low credit utilization rate, or the amount of debt on the card compared with its credit limit. That makes up another 30% of your FICO® Score. If the account meets these requirements, your affiliation with it is likely to help your credit, and you can safely remain as an authorized user.\nBut if the person whose account you've chosen to join isn't keeping their end of the bargain, their missed payments could negatively affect your credit—at least temporarily. For this to happen, the credit card company must first report authorized-user activity to the credit bureaus. Next, the credit bureaus must include the negative information, like late payments, on your credit report.\nThe good news? Not all credit reporting agencies do so. Experian, for instance, will automatically remove delinquent accounts an authorized user isn't responsible for paying from his or her credit report. But since other agencies may still incorporate the account's late payments into your credit history, consider removing yourself as an authorized user and looking into other ways to build credit. END
 TITLE: Removing Yourself as an Authorized User Could Help Your Credit CONTENT: How to Remove Yourself From an Account\n--------------------------------------\nYou're generally able to remove yourself as an authorized user by calling the credit card issuer and requesting the change. You may also be able to ask to remove yourself from the account online, depending on the company.\nThe account will no longer appear on your credit report, and its activity will not be factored into your credit scores. That also means that your length of credit history, which constitutes 15% of your FICO® Score, will be affected. In other words, if the credit card you were attached to was the oldest account on your report, your credit history will be shorter without it. But that's a worthwhile change if the account was poorly managed otherwise; late payments have a larger effect on your creditworthiness than length of history. END
 TITLE: Removing Yourself as an Authorized User Could Help Your Credit CONTENT: Making Sure You've Been Removed as an Authorized User\n-----------------------------------------------------\nTo double-check that you've successfully removed yourself as an authorized user, check your credit report. All accounts in your name, or that you're connected to—including car loans, student loans, credit cards and mortgages—will appear there.\nIf you've asked to disconnect from a credit card account yet it's still showing up on your credit report, contact each credit bureau individually and dispute the inaccuracy. Explain that you are no longer an authorized user and request that all activity going back to the day you were removed from the account be struck from your credit report. END
 TITLE: Removing Yourself as an Authorized User Could Help Your Credit CONTENT: Weigh the Pros and Cons\n-----------------------\nThe potential perks of being an authorized user are big, but so are the pitfalls. To avoid disappointment, and jeopardized credit, pick your primary account holder carefully. Then pay close attention to their account usage and payment history. If it's time to cut ties, know that there are other options for getting started with or improving credit. Removing yourself as an authorized user when necessary is a step toward thoughtful, vigilant financial proficiency. END
 TITLE: Does My Company Credit Card Affect My Credit Score? CONTENT: Why Does My Small Business Card Have an Effect on My Credit Score?\n------------------------------------------------------------------\nWhen you open a small business credit card as the primary account holder, you're offering your personal guarantee of repayment. Even though you may be using the card solely for business expenses, the process is really no different from applying for a personal credit card. This means that the card issuer will check your credit history and credit score before approving your account, just like they would for a personal credit card. Likewise, your balance and payment history will likely be reported to the major consumer credit bureaus (Experian, TransUnion and Equifax).\nWhen you make your payments on time and carry very little debt, your small business credit card can add positive information to your credit history and improve your credit scores. But if you miss payments and accumulate a large amount of debt, then your small business credit card can have a negative impact on your credit history and scores.\nEven if you are just an authorized user on your employer's small business credit card, it can still have an impact on your credit score, but a less significant one. If your employer manages its small business credit card responsibly, it can actually help your credit history. But if your employer's card is managed poorly, or carries a large balance, then that can be reflected on your credit history and credit score. END
 TITLE: Does My Company Credit Card Affect My Credit Score? CONTENT: Was My Credit Checked When I Got My Company Card?\n-------------------------------------------------\nBecause you agree to pay back the loan from a small business credit card, the card issuer will always want to examine your personal creditworthiness before granting approval. But if you're simply becoming an employee-authorized cardholder on the owner's small business credit card, then the card issuer won't check your credit.\nThat changes with a corporate credit card. Your credit may be checked when you are made an authorized user on a corporate card, which is a card issued to larger companies, as well as nonprofit and government entities. This credit check can have a minor effect on your credit score, but it's temporary. To find out if you've been the subject of a credit check, also called a hard inquiry, you can check your credit report. Once you have the card, the balance and payment information will be reported on the organization's credit report and won't be a part of your credit history. END
 TITLE: Does My Company Credit Card Affect My Credit Score? CONTENT: How Can I Avoid Negative Impacts to My Credit?\n----------------------------------------------\nIf you're the primary account holder on a small business credit card, then you need to manage the card responsibly, just as if it were a personal credit card. The key to responsible credit card use is always paying your bills on time and carrying very little, if any, debt month to month. It's also important to examine your statements every month to ensure that there aren't any unauthorized charges. For more information, see \"What Affects Your Credit Scores?\"\nBut if you're an employee and authorized user on your company's business credit card, you may wish to examine your credit history to ensure that the card's balance isn't adding to the debt reported on your credit history and hurting your credit scores. If so, you may want to ask your employer to remove you as an authorized user. END
 TITLE: Does My Company Credit Card Affect My Credit Score? CONTENT: The Bottom Line\n---------------\nWhether your company card affects your credit score depends on what type of card it is. When you're the primary account holder of a small business credit card, it's essentially the same as having a personal card. And when you're an authorized user on your boss's small business credit card, the effect is comparable to being an authorized user on a personal card. But when you've been issued a corporate card, you can expect very little effect on your credit. Your credit may be checked when the card is issued to you, but the balance and payment information is reported as part of the organization's credit history, not yours.\nBy understanding how small business and corporate credit cards can affect your credit, you can make the right decisions to protect your credit score. END
 TITLE: The Difference Between VantageScore<sup>®<\/sup> Scores and FICO<sup>®<\/sup> Scores CONTENT: VantageScore and FICO Create Multiple Credit Scores\n---------------------------------------------------\nVantageScore and FICO® create credit scoring models—software that can analyze a credit report to generate a credit score. And the consumer risk scores that VantageScore and FICO® create have the same goal: to predict the likelihood that a person will fall at least 90 days behind on a bill within the next 24 months.\nThe VantageScore models and the base FICO® models are generic credit scores, meaning they're created for use by a wide range of creditors, such as private student loan companies, online lenders and card issuers. FICO® also creates industry-specific auto and bankcard scores, which are built on the same criteria as the base FICO® scores but tailored for auto lenders and card issuers.\nAs with other types of software, VantageScore and FICO® occasionally update their scoring models to ensure they remain predictive as consumer behavior changes, and to incorporate new technology, information and industry practices.\nThe first VantageScore model, version 1.0, was launched in 2006; the company released the latest version, 4.0, in 2017. The FICO® base scoring model dates back to 1989, but the latest versions are the FICO® Score☉ 8 (launched in 2004) and FICO® Score 9 (launched in 2014). Creditors can choose which model to use and may test out different models to figure out which one is best at helping them determine risk with their particular customer base.\nYou might check your VantageScore and FICO® credit scores and wonder why they're different. In part, it's because the models give varying levels of importance to different parts of your credit report. END
 TITLE: The Difference Between VantageScore<sup>®<\/sup> Scores and FICO<sup>®<\/sup> Scores CONTENT: VantageScore vs. FICO Credit Scores\n-----------------------------------\nWhile VantageScore and FICO® scores try to predict the same thing, their credit scoring models aren't identical. Here are some of the main differences between the two companies and their scores:\n### Tri-Bureau vs. Bureau-Specific Models\nVantageScore creates a single tri-bureau model that can be used with a credit report from Experian, Equifax or TransUnion.\nFICO® creates bureau-specific scoring models. So, while the latest FICO® Score 9 might have one name, there are actually three slightly different FICO® Score 9 models—one for each of the major credit reporting agencies.\n### Minimum Scoring Requirements\nFor FICO® to create a credit score based on one of your credit reports, you'll need to have a credit account (or \"tradeline\") that's at least 6 months old and activity on a tradeline during the previous six months (they don't need to be the same tradelines).\nYou may be scoreable by VantageScore as long as your credit report has at least one account in it, even if the account is less than 6 months old.\nAdditionally, neither credit score agency will score a credit report if the report indicates the consumer is deceased.\n### The Score Ranges\nWith all these credit scoring models, a higher score indicates you're less likely to miss a payment, which is why creditors are willing to offer people with high scores the best rates and terms.\nThe base FICO® Scores range from 300 to 850, while FICO's industry-specific scores range from 250 to 900.\nThe first two versions of the VantageScore ranged from 501 to 990, but the latest VantageScore 3.0 and 4.0 use the same 300-to-850 range as base FICO® scores.\nWhat qualifies as a good score can vary from one creditor to another. However, on the 300-to-850 scale, a score of at least 670 (for FICO®) and 700 (for VantageScore) will generally qualify as having good credit.\n### The Importance of Different Credit Scoring Factors\nThe impact of a specific action on your credit scores will depend on your overall credit profile and the scoring model. However, FICO® and VantageScore only consider the information that's in one of your credit reports when determining a score, and they generally place similar relative levels of importance on the same types of information.\nThe main factors that impact your score can be separated into several categories:\n*   Payment history. Whether you've made on-time payments, late payments, have accounts in collections, defaulted on debts or declared bankruptcy.\n*   Credit usage. Your credit utilization rate, or the amount of available credit you're currently using with your revolving credit accounts, such as credit cards. To a lesser extent, the amount you owe on installment loans is also important.\n*   Length of credit history. How much experience you have managing credit accounts.\n*   Types of accounts. Whether you have experience using and paying off different types of credit accounts.\n*   Recent activity. Whether you've recently applied for new accounts that led to hard inquiries.\nWithin each category, FICO® and VantageScore may take different approaches to how they use or weight specific pieces of information. Three examples are how the scores treat revolving account balances (or credit utilization), collection accounts and hard inquiries.\n### Credit Utilization\nYour utilization rate can be an important scoring factor, but most scores only consider your most recently reported revolving account balances and limits in this factor, which is essentially your total credit card balances divided by your credit limits on those accounts. This shows how much available credit you're using.\nVantageScore 4.0 looks back and considers your trended utilization, such as whether you usually only make minimum credit card payments or pay your bill in full. FICO® Score and other VantageScore models don't.\n### Collection Accounts\nAlthough unpaid collections accounts can hurt both your FICO® and VantageScore credit scores, collection accounts are treated differently depending on the type of account, whether it's been repaid and the specific scoring model.\nFor example, FICO® Score 9 ignores paid collection accounts and puts less importance on unpaid medical collections than other types of unpaid collections. FICO® Score 8 doesn't differentiate between medical and non-medical collections and doesn't ignore paid collection accounts. Both versions ignore collection accounts when the original account's unpaid balance was under $100.\nVantageScore 3.0 and 4.0 both ignore paid collection accounts and give less weight to medical collections, but there's no exemption for low-balance collections.\n### Credit Inquiries\nA hard inquiry gets added to your credit report when you apply for a new credit account, and it can hurt your credit scores (though usually for less than a year). However, scoring model creators understand that applying for multiple loans so you can compare your options and offers is savvy rather than risky behavior.\nVantageScore addresses this by deduplicating (or \"deduping\") any inquiries that occur within a 14-day window. If you apply for a credit card today, a personal loan tomorrow and five auto loans next week, you may have seven new hard inquiries on your credit report, but VantageScore scores you as if you only had one hard inquiry during that period.\nRecent FICO® Scores have a 45-day dedupe window, while older models (including those that are still used for mortgage lending) have a 14-day dedupe window. However, FICO® Scores only dedupe multiple inquiries from student loan, auto loan and mortgage applications.\nBut FICO® also has a hard-inquiry buffer, which means any mortgage, auto or student loan hard inquiries from the previous 30 days won't impact your FICO® scores.\n### The Same Behavior Can Help All Your Scores\nThere are many differences between VantageScore and FICO® credit scores, and each companies' various credit scoring models. However, all the scoring models try to predict the same thing using the same underlying data. As a result, if you focus on building a good credit history, you can improve all your scores. One way to do that is to monitor your credit regularly. Experian's free credit monitoring service provides access to your Experian FICO® Score, credit report and other information that can help you better understand how credit scores work and actions you can take to improve all your credit scores. END
 TITLE: Don’t Kill Your Credit Score: 5 Strategies to Help It Thrive CONTENT: 1\\. Do Not Close Old Credit Cards\n---------------------------------\nMaybe you've finally paid off the balance on an old credit card and are ready to celebrate the demise of your debt. Or perhaps you've found a new rewards card you like better than the one you'd been using. Before you call up the issuer to cancel the card, think twice.\nThat's because when you shut down an old credit line, you're also triggering a reduction in your overall credit limit. That could increase your credit utilization ratio—the amount of credit you use each month compared with the amount of credit available to you. The lower your ratio, the better your credit score.\nAnother way it could hurt your score? By decreasing the average age of your credit history. Most scoring models consider the length of your credit history, or how long the accounts in your file have been open. If you close an account, you lose all those years of credit history for that card. Length of credit history is not a huge factor in your credit score, but it does play a role. The more accounts you have that are open and active for a long time, the better.\nSo even if you stop using a card, it's probably beneficial to keep the credit line open. Of course, if you're worried it will tempt you to spend more, stick it in a drawer so it's out of sight. Just be sure to pull it out once a year or so and use it on a small purchase to keep it active—that way, your issuer won't close it down because of a lack of activity.\nThe exception? If you're paying an annual fee on a card you don't want anymore, you'll probably want to cancel that one. But before you do, call your issuer and ask if they can convert it to a no-fee card. Most major issuers will be able to do that—allowing you to keep the credit line open without having to pay the annual fee. END
 TITLE: Don’t Kill Your Credit Score: 5 Strategies to Help It Thrive CONTENT: 2\\. Do Not Stick to Just One Type of Credit\n-------------------------------------------\nAnother factor that plays a role in your credit scores is your \"credit mix,\" which is how many different types of revolving and installment credit loans you have. It accounts for 10% of your FICO® credit score.\nYou don't need a ton of different credit accounts, but people with the best scores typically have a diverse portfolio of credit accounts. That may include a student loan, a car loan and a couple of credit cards.\nOf course, you shouldn't take out new credit just for credit's sake, but even if you're averse to credit cards, it's probably wise to have at least one or two in your wallet to diversify your credit mix. END
 TITLE: Don’t Kill Your Credit Score: 5 Strategies to Help It Thrive CONTENT: 3\\. Do Not Apply For Too Many New Lines of Credit\n-------------------------------------------------\nWhile keeping a diverse credit mix is important, that doesn't mean you should go crazy and apply for every credit card out there. When you apply for new credit, typically the lender will request your credit report to help them make a decision. That check is called a hard inquiry, and these inquiries remain on your credit report for up to two years. Most hard inquiries will result in a small ding in your credit scores, though they are erased pretty quickly. But too many hard inquiries can have a negative impact on your scores.\nThis is especially important in the months before applying for a big loan, like a mortgage. During that period, you'll want to abstain from applying for new credit altogether so you can get your credit in the best shape possible. END
 TITLE: Don’t Kill Your Credit Score: 5 Strategies to Help It Thrive CONTENT: 4\\. Do Not Fall Into a Pattern of Late Payments\n-----------------------------------------------\nThe biggest factor in determining your credit score is whether you make payments on time. The best thing you can do to keep your credit scores healthy and flourishing is to be vigilant about never missing a payment. Even if you can't afford to pay off a balance in full, it's vital that you make at least the minimum payment on time. END
 TITLE: Don’t Kill Your Credit Score: 5 Strategies to Help It Thrive CONTENT: 5\\. Do Not Ignore Your Credit Report\n------------------------------------\nYou may already know you actually have more than one credit score—in fact, you probably have hundreds. But all scoring models will reward you for good credit behavior and ding you for bad behavior—and they'll make those decisions based on the information in your credit reports.\nTo keep your credit scores healthy, you'll want to periodically check your credit reports to make sure they are accurate. Mistakes on your credit reports could possibly hurt your scores, so you'll want to review them at least once a year to make sure they are correct. That's also a good way to ensure no one else is opening credit in your name. END
 TITLE: Do Utility Company Inquiries Hurt Your Credit Score? CONTENT: The Difference Between Hard Inquiries and Soft Inquiries\n--------------------------------------------------------\nThere are two types of credit inquiries: hard and soft.\n*   **Hard inquiries** typically occur when you initiate a credit transaction, such as applying for a loan or credit card. That said, one additional hard inquiry will typically knock less than five points off a person's FICO® Score☉ . Where it can have a greater impact is if you have too many inquiries in a short period. Why? Because it can be a sign of financial distress.\n*   **Soft inquiries**, on the other hand, have no effect on your credit score. These typically occur when a prospective lender sends a preapproval offer, or an existing lender runs a credit inquiry during a routine account review. Similarly, utility companies checking your credit are soft inquiries. Checking your own credit report is also considered a soft inquiry. END
 TITLE: Do Utility Company Inquiries Hurt Your Credit Score? CONTENT: What to Do About Inquiries You Don't Recognize\n----------------------------------------------\nIf you don't recognize an inquiry on your credit report, don't panic. Many creditors use abbreviations or a parent company name when reporting credit activity. Do a quick online search to try to match the name to a company you did business with.\nAnother reason may be that you applied for a type of loan where several lenders were competing for business. This often happens with auto loans and mortgages where the dealership or broker sends your application to multiple lenders to shop around for the best rate.\nWhile \"rate shopping\" inquiries are consolidated into one for credit scoring purposes, you'll still see each one on your credit report.\nIf neither of these scenarios is the case, it could be a sign that you're a victim of fraud. If you believe someone has stolen your identity, contact the credit reporting agencies, including Experian, Equifax, and TransUnion, to dispute the information. Also, consider adding a fraud alert or freeze to your credit file. END
 TITLE: Do Utility Company Inquiries Hurt Your Credit Score? CONTENT: Can Utility Bills Impact Credit Scores?\n---------------------------------------\nUtility bill payments typically don't affect your credit score because most utility companies don't report on-time payments to the credit bureaus. The exception is when you're severely delinquent on your payment, and the utility company sends your bill to collections.\nAt this point, the collection agency will typically report the past-due debt to the credit reporting agencies, which can significantly damage your credit score. The same can happen if the utility company charges off your account, assuming you're not going to pay.\nNow, however, your utility payments can have a positive impact on your credit report. Experian Boost™† is a tool that allows you to include utility and telecom payments in your Experian credit file.\nSimply give Experian access to your bank account data, verify monthly utility payments, and confirm that you want them included on your credit report. If the new information can increase your credit score, the boost will happen immediately.\nExperian Boost doesn't include late utility payments in its calculations, so you don't have to worry about those having the opposite effect. END
 TITLE: Do Utility Company Inquiries Hurt Your Credit Score? CONTENT: Ensure That Utilities Help Your Credit\n--------------------------------------\nUtility inquiries are only soft inquiries, so they won't hurt your credit. And if you opt in to Experian Boost, your utilities can even help your credit scores.\nIf you're late on a utility payment or your account has already been sent to collections, try to get caught up on payments or pay off the collections account as quickly as possible. Then work to maintain a positive payment history going forward.\nTo get a better understanding of where your credit stands, order a free credit report. While a delinquent account can remain on your credit report for seven years, new positive credit activity can reduce its impact over time. END
 TITLE: How Cosigners Are Affected When a Car Is Repossessed CONTENT: How Does Auto Repossession Work?\n--------------------------------\nWhen a car is financed, the lender owns the vehicle until the loan is 100% paid off. The vehicle serves as collateral for the debt, and the lender can repossess it if the borrower falls behind on payments.\nThough some loan agreements allow repossession as soon as the borrower misses a bill, many lenders will try to collect payment for weeks or months before taking the next step. If that doesn't work—and the borrower fails to respond to notifications or make payments—the lender can, in most states, repossess the car without warning, and from almost anywhere. (A repossessor can't, however, commit a \"breach of the peace\" while doing so; if it does, the borrower may have legal recourse.)\nRepossession is really bad news for both the borrower and the cosigner. Not only will the borrower lose their mode of transportation, but one of you will likely have to pay the remaining balance, and credit scores belonging to both of you will take a hit in the process. Credit scores for both signers are also likely to be damaged by the late payments that lead up to a repossession as well. END
 TITLE: How Cosigners Are Affected When a Car Is Repossessed CONTENT: Are Cosigners Liable for an Auto Repossession?\n----------------------------------------------\nAs a cosigner, you're essentially agreeing to make payments on the loan if the borrower can't. That means your signature on a loan can help a friend or family member get a loan they otherwise wouldn't be able to. It also means you're equally liable for the debt, which might compel you to step in and help with loan payments if the borrower begins to have trouble.\nIf the car loan goes into default and results in car repossession, you'll be equally liable for that too, including any deficiency balance.\nA deficiency balance is what results after a lender sells a repossessed car at auction but can't get enough for it to make up its financial loss. Unfortunately, auctioned vehicles often sell for less than they're worth, which leaves the borrower and cosigner on the hook to pay the deficiency balance. The amount owed can include any remaining loan balance, combined with fees incurred by the repossession, minus proceeds from the sale.\nLet's say the borrower still owes $8,000 on their auto loan. If the lender sells the car for $5,000, there would be a deficiency balance of $3,000—plus any repo- or financing-related fees.\nThe lender will either try to collect this amount itself, or sell the debt to a third-party collections agency. (Note that, in some states, lenders can't pursue this debt if the original price of the car or the resulting deficiency balance is less than a few thousand dollars.)\nAs the cosigner, you and the borrower are equally responsible for paying the deficiency balance—and could be taken to court. To avoid this, you could try to negotiate a settlement with the creditor, paying a lump sum less than the total owed to have the entire debt erased. Just be aware that you may owe taxes on the amount forgiven. END
 TITLE: How Cosigners Are Affected When a Car Is Repossessed CONTENT: Do Cosigners Have Rights When a Car Is Repossessed?\n---------------------------------------------------\nAlthough you have significant liabilities as a cosigner in an auto repossession, you also have rights.\nFirst off, the creditor must sell the repossessed car in a \"commercially reasonable manner.\" While the definition of this varies by jurisdiction, the Federal Trade Commission says a \"resale price that is below fair market value may indicate that the sale was not commercially reasonable.\" If that occurs, you may be able to hold it against the creditor in court.\nYour creditor must also provide certain written notices to you soon after the repossession (usually within five days). Specifically, you should receive information regarding:\n*   Redemption, wherein you can pay the full balance due, plus fees, to buy back the car.\n*   Reinstatement, wherein you make all the past-due payments, plus fees, to get current on the loan and get the car back (access to this option depends on your state and contract).\n*   When and where the car will be sold.\n*   How the deficiency balance is calculated.\nBe sure to keep careful records; if the creditor doesn't follow these rules, you could integrate that into your legal defense.\nYou can also ask the creditor for permission to sell the car yourself, thereby saving it money on fees—and potentially garnering a much higher price. If the lender refuses, you could potentially use that in court too. END
 TITLE: How Cosigners Are Affected When a Car Is Repossessed CONTENT: How Can Repossession Affect Your Credit as a Cosigner?\n------------------------------------------------------\nAs a cosigner, you are just as responsible for the loan as the main borrower. Cosigned debt shows up on your credit reports, and late payments or defaults can have serious ramifications for your credit scores.\nThat means your credit is equally liable to damage from a repossession, too. When a car is repossessed, it'll leave a black mark on both the borrower's and cosigner's credit reports for seven years.\nNot only that, the events leading up to repossession will also have an impact. Each will generally appear as its own line item on a credit report and have its own timeline for removal. Here are some of the other negative marks that may show up on your credit reports before and after a car is repossessed:\n*   Late payments\n*   Loan default\n*   Loan sent to collections\n*   Court judgments\nGiven that payment history accounts for 35% of your FICO® Scores☉ , a car repossession, and the negative marks leading up to it, will likely cause your credit scores to drop significantly—even if you're a cosigner. END
 TITLE: How Cosigners Are Affected When a Car Is Repossessed CONTENT: How to Build Your Credit After Repossession\n-------------------------------------------\nWhile the impact of the repossession will fade with time, it'll take seven years (from the date of the first missed payment) to completely fall off your credit reports.\nIf you were the cosigner, you probably had strong credit to begin with—so you know what it'll take to build it back up. Besides paying off the car's deficiency balance to show lenders you've made good on the debt, you can also focus on:\n*   **Making on-time payments**: Recent payment history is the most important factor in the most common credit scores. So be sure to avoid any late payments—on your loans and on loans you've cosigned—moving forward. If you have any other past-due accounts, get current as soon as you can.\n*   **Paying down debt**: The amount of revolving debt you have compared with your limits (credit utilization) is the second most important factor in your scores. Work to pay down your other debts and resist any temptation to build them back up.\n*   **Keep old cards open**: If you have a credit card you're not using, cut it up or put it in a drawer. Closing the account could eventually reduce your average age of accounts and available credit, which could negatively impact your scores.\n*   **Regularly monitoring your credit**: Review your free FICO® Score and credit report, or sign up for free credit monitoring to see where you can make improvements.\n*   **Signing up for Experian Boost™†** : This service adds certain bills to your credit report, which can potentially help you improve your credit with every on-time payment. Things like utility bills, cellphone payments and your Netflix® subscription don't otherwise appear on your report and won't help you build credit.\nExperiencing an auto repossession as a cosigner is an awful stroke of luck. But with some effort and some time, you'll be able to bring your scores back up to where they once were.\n_**Note**: In light of the coronavirus pandemic, some lenders and states have softened their rules regarding repossessions. If you're in danger of defaulting on your auto loan, look into your state's laws and contact your lender ASAP._ END
 TITLE: Does Repossession Affect a Cosigner’s Credit? CONTENT: How Can Repossession Affect Your Credit as a Cosigner?\n------------------------------------------------------\nAs a cosigner, you use your good credit score and history to help the primary applicant, usually a relative or close friend, qualify for a loan. The lender approves the loan based on your qualifications, under the assumption that if the applicant doesn't make their payments, you will make good on the obligation. Even though you don't own or use the car, you and the primary borrower are equally responsible for making sure the loan gets paid.\nIf the person for whom you've cosigned falls behind on their payments and their car is repossessed, the repossession will hurt your credit just as it hurts theirs. The repossession will be listed on your credit report for seven years from the date of the first missed payment that led to the repossession. You could also be held liable for the deficiency balance, along with any repossession costs and fees.\nBut the hits to your credit start well before the car is repossessed. Your credit report will show a history of late payments on the loan, as well as the loan going into default. If you or the primary borrower do not pay the deficiency balance and the lender sends it to collections, the collections record will also appear in your file. Finally, any court judgments associated with the loan will go on the credit histories belonging to both loan signatories.\nEven if you have great credit otherwise and make all of your own payments on time, a repossession or default on a loan you cosigned could seriously hurt your credit score. END
 TITLE: Does Repossession Affect a Cosigner’s Credit? CONTENT: What to Ask Before You Cosign\n-----------------------------\nBefore you agree to cosign a loan for someone, you may want to have an open discussion about their finances. It can be difficult to discuss money with friends and family, but it's important to remember that you're taking on the responsibility of a loan as the cosigner.\nYour credit is on the line as much as your loved one's, so it's a good idea to fully understand their debt history and ability to make their car payments before you make a decision.\nHere are some questions that may help you start the conversation:\n*   Why weren't you able to qualify for the loan on your own?\n*   Have you ever been late on payments in the past, including other loans or credit cards?\n*   Are you able to pay your monthly bills without using credit or borrowing from friends and relatives right now?\n*   How much will the monthly car payments be?\n*   Do you have a budget you can share showing how you will afford the payments?\nYou may find that the person couldn't qualify on their own because they have a limited credit history and needed someone with a stronger record of good credit management and on-time payments to strengthen their application. On the other hand, perhaps a friend has a few bad credit marks from a few years ago pulling down their score. They've since gotten better at managing their money and debts, but those marks still may be cause for concern.\nWhatever the reason, having context about their finances can help you make an informed decision about whether to cosign the loan. Ultimately, it's your decision to make based on what you know and what you might be able to find out if you ask.\nIf you choose to cosign, it could help to come up with a game plan with the borrower for what to do if they can't make their payments for a couple of months. Decide how you'll communicate about potential problems and at what point you'll step in to help with payments.\nAgreeing on how you'll communicate about the loan is important because the lender will only send bills to the primary borrower. The lender doesn't have to inform cosigners that payments are late or that the loan is in default. Consider talking to the primary borrower about whether they'll show you their monthly statements or provide account access so you can monitor the loan's activity.\nYou may want to keep a few months of payments in a savings account in case you need to help out with the loan for a little while. Ideally, the primary borrower will manage the payments for the entire life of the loan. But knowing that you have the money to keep the account in good standing in a worst case scenario may bring you peace of mind. END
 TITLE: Does Repossession Affect a Cosigner’s Credit? CONTENT: What Rights Do Cosigners Have in Auto Repossession?\n---------------------------------------------------\nIf a lender repossesses a car, will contact you regarding your options for the vehicle. These might include:\n*   **Reinstating the loan**: You may be able to bring the account current by paying all past-due amounts and fees.\n*   **Redemption of the vehicle**: You can buy back the car by paying off the balance plus fees.\nAssuming that you choose not to reinstate the loan or buy back the car, the lender will also let you know when and where the car is being sold and how they will calculate the deficiency balance.\nFederal law requires lenders to conduct a \"commercially reasonable\" sale, which means they cannot sell the car for significantly less than the fair market value and then require you to pay the difference. END
 TITLE: Does Repossession Affect a Cosigner’s Credit? CONTENT: How to Rebuild Your Credit After Repossession\n---------------------------------------------\nAlthough a repossession stays on your credit report for seven years, there are steps you can take to repair your score.\n1.  Make sure all other accounts are paid on time. Payment history is the biggest factor influencing your credit scores, so set up a plan for ensuring that no other accounts are paid late. You may want to set up automatic payments with any lenders that offer it to make account management easier.\n2.  Catch up on late payments and charge-offs. If you're behind on any other bills or have accounts that are currently in collections, it can help to pay those off as quickly as possible. The goal is to keep all of your open credit cards or loans in good standing, and avoid their being sent to collections.\n3.  Monitor your credit report. Keeping a close eye on your credit report will help you identify risk factors such as high credit card debt and missed payments. Once you better understand what's in your credit, you're in a better position to take action to improve it. You can request a free copy of your credit report from the three credit bureaus (Experian, TransUnion and Equifax) through AnnualCreditReport.com. You can also get your free credit report and scores directly through Experian as well.\nYou can also enroll in Experian Boost™† , which adds certain utility, telecom and other bill payments to your credit report. Their presence on your report means they can factor into credit scores based on your Experian credit file, which may give you a lift.\nJust because you have a repossession on your file doesn't mean you have to wait seven years to improve your account. By being proactive and managing your accounts well, you can come back from default, perhaps even sooner than you think. END
 TITLE: What Happens If I Don’t Pay a Deficiency Balance? CONTENT: When a lender seizes property from you, whether it's your home, your vehicle or other property, they will typically sell it to recover the remaining balance on your loan. But the sale may not cover the full amount you owe, including any new fees you may have incurred.\nWhen the sale of your property falls short of covering your full balance, the remaining debt becomes a deficiency balance, which you could be required to pay.\nSome of the most common events that result in a deficiency balance include foreclosure, deed-in-lieu of foreclosure and a short sale. When it comes to your car, you could have a deficiency balance after having your vehicle repossessed or after you voluntarily surrender your vehicle. END
 TITLE: What Happens If I Don’t Pay a Deficiency Balance? CONTENT: What Options Do You Have When You Owe a Deficiency Balance?\n-----------------------------------------------------------\nEven if you voluntarily turn over your property, you may have to pay a deficiency balance. If you refuse to pay, the debt will most likely be sold to collections. But either the lender or the collector can choose to file a lawsuit against you, which could result in a wage garnishment, a levy against your bank account or a lien against your other property.\nThe safest course of action is to pay the full remaining balance owed. If you can't afford the amount due, make sure to communicate that to the lender immediately. You may be able to negotiate a settlement or an affordable payment plan to avoid being sued.\nThere are a few circumstances in which you may not have to pay a deficiency balance. In some states, the law doesn't allow lenders to collect the deficiency balance if you voluntarily surrender your home. You may even be able to get your lender to waive the balance as a part of your agreement to let go of your house.\nSome people who are sued for a deficiency balance may have a legal defense against paying. If you live solely off of federal benefits or simply have no way to afford repayment, a wage garnishment may not be allowed. You can also defend against judgment if you can prove that the lender didn't make an effort to sell your property for fair market value. END
 TITLE: What Happens If I Don’t Pay a Deficiency Balance? CONTENT: How Does a Deficiency Balance Affect Your Credit Score?\n-------------------------------------------------------\nOwing a deficiency balance doesn't directly affect your scores, but the circumstances leading up to the deficiency may have a severe negative impact. Here are some credit activities that hurt your scores:\n*   **Delinquent loan payments**: Your debt payment history is the biggest factor in calculating your credit scores, so when you miss an auto loan payment or a mortgage payment, your scores take a big hit.\n*   **Loan default**: Your credit scores take an additional hit when your loan enters default, which can happen once you're anywhere from 30 to 90 days late, or later.\n*   **Repossession**: Vehicle repossession has a serious negative impact on your scores, and stays on your credit file for seven years from the date you stop paying your loan.\n*   **Voluntary surrender**: Even if you voluntarily return your car to your lender, your credit scores will be impacted, but the hit may be slightly less severe than a repossession.\n*   **Collections**: If your deficiency balance is sent to collections, you'll experience another drop in your scores and the collections account will stay on your reports for seven years from the date you originally fell behind on your debt payment. END
 TITLE: What Happens If I Don’t Pay a Deficiency Balance? CONTENT: Rebuilding Your Credit\n----------------------\nIf you owe a deficiency balance, your credit score has likely already taken a big hit from missed loan payments and other negative marks. You may feel like your score will never recover.\nThe truth is, no matter what your credit score is, you can always rebuild it over time. The sooner you begin adding positive information to your credit reports, the sooner you'll start gaining points. For a jump-start, sign up for Experian Boost™† for free, and add your on-time utility, cellphone and Netflix® payments to your credit file. END
 TITLE: Avalanche vs. Snowball: Which Repayment Strategy Is Best? CONTENT: What Is the Debt Avalanche Approach?\n------------------------------------\nThe debt avalanche strategy focuses on saving you the most money in interest over time. It does this by prioritizing your debts with the highest interest rates. If you decide to pursue the debt avalanche strategy, you'll need to do the following:\n*   Make a list of all of your credit card debts and order them by interest rate from highest to lowest.\n*   Put as much extra money as possible toward your debt with the highest interest rate after paying the minimum balances on all your other debts every month.\n*   Once you pay off the debt with the highest interest rate, move on to the debt with the next highest rate. Take the extra money you used to pay off the first card and add it to the minimum payment on this card until its debt is deleted. Continue paying off each card this way until you've paid off all your debts.\nIf you want to save as much money as possible and don't need positive reinforcement from knocking out loans quickly to stay on track, you may benefit from the debt avalanche method of repayment.\n### Debt Avalanche Example\nLet's say you have credit card balances in the following amounts:\n*   $1,000 at 12% APR\n*   $800 at 10% APR\n*   $700 at 9% APR\n*   $300 at 3% APR\nWith the debt avalanche strategy, you'd make minimum payments on all of your debts except the card with the $1,000 balance because it has the highest interest rate. You'd focus on putting as much as possible toward that card until you pay it off. Then, you'd move on to the $800 debt and eventually make your way down to the $300 debt.\n### Pros and Cons of the Debt Avalanche\nIf you choose the debt avalanche strategy, you can reap this major benefit:\n*   **Interest savings**: By knocking off your debts with the highest interest rates first, you'll save money in the long run. If you have many high interest debts, this can add up to hundreds or even thousands of dollars in savings.\nThe most noteworthy disadvantage of the debt avalanche is:\n*   **Motivation may be difficult**: It may take a long period of time to pay off your first high interest debt. This can make it difficult to stay motivated and continue on with your debt-free journey.\nWhat Is the Debt Snowball Approach?\n-----------------------------------\nWith the debt snowball strategy, you focus on paying off your smallest debt first, then applying the payments that you were previously using toward it to pay the next smallest debt. That way, you're building momentum, or \"snowballing\" your payments as you pay off each card. If you go this route, here's what you'll need to do:\n*   Make a list of all your debts and order them from the lowest to highest balance.\n*   Put as much extra money as possible toward your debt with the smallest balance while paying the minimum balance on all your other debts every month.\n*   Once you pay off your smallest debt, move on to the next smallest one until you've paid off all your debts.\nIf you're overwhelmed with paying off your debt and need to celebrate milestones, this method will likely give you the boost you need to stay motivated since you'll pay off individual cards more quickly.\n### Debt Snowball Example\nImagine you have the same five debts listed above and want to try the debt snowball approach.\n*   $1,000 at 12% APR\n*   $800 at 10% APR\n*   $700 at 9% APR\n*   $300 at 3% APR\nWhile you make minimum payments on all the other debts, find ways to pay more than the minimum balance for your $300 debt, since it is the smallest one. After you pay off the $300 card, you'll use the money that was going to pay that debt to pay off the debt with the $700 balance, and so on. You'll keep going until all of your debts have been paid.\n### Pros and Cons of the Debt Snowball\nThe major advantage of the debt snowball strategy is:\n*   **Faster wins**: If you have a lot of debt, it's going to take you some time to pay it off. With the debt snowball method, you'll gain momentum and stay motivated as you see smaller debts drop quickly.\nThe greatest drawback of the debt snowball is:\n*   **Higher interest costs**: The debt snowball method doesn't consider interest rates; it focuses on the balance owed on each card. This means you may be paying more in interest throughout the process. END
 TITLE: Avalanche vs. Snowball: Which Repayment Strategy Is Best? CONTENT: Which Debt Repayment Strategy Should I Choose?\n----------------------------------------------\nThe debt repayment strategy you choose should depend on your unique goals and feelings about debt. If saving money on interest is your main motivation because you have a lot of high interest debt from things like credit cards and payday loans, the debt avalanche is your best option. On the other hand, if you find it tough to stay motivated and are looking for more immediate results, the debt snowball makes more sense.\nWhichever method you choose—the debt avalanche, debt snowball or something completely different—the most important part is to stick to your plan. By committing to paying off your debt, you'll free up cash to achieve your financial goals, and stop putting money toward interest. END
 TITLE: How to Start Investing CONTENT: It's best to start investing when you are confident you can easily manage your monthly budget, including expenses such as your mortgage or rent and other necessities; you have little to no credit card debt; and you've built up an emergency fund. Investing will tie up your money for a significant period of time, so it's critical that you have other funds to take care of your monthly expenses and emergency costs that could come up.\nOnce you're ready to start, do your research, create a plan and plunk down your first investment, however small. The more time your investment has to grow (in most cases), the more wealth you can build over the long term. Starting early is often key to growing investments because as those investments yield a return, you'll be able to reinvest that money and watch it grow over time.\nImagine this scenario: You start off with an initial investment of $1,000 and contribute $25 each month for the next 30 years. In this scenario, your total out-of-pocket contribution would be $10,000 over the 30 years. If your investment grows at an average of 10% annually, you'll end up with $66,798 at the end of the 30 years; that's more than six times what you originally invested.\nIf you were to do the same thing but for only 10 years, you would have contributed $4,000 out of pocket, and your total investment would only be worth $7,375. The dramatic difference in these totals shows why it's important to begin investing as soon as it makes sense. END
 TITLE: How to Start Investing CONTENT: What to Invest in First\n-----------------------\nThere are many ways to invest your money, but as a beginner it's probably smart to start off with smaller and less risky investments. Depending on how much disposable income you have, you may have to adjust your investment strategy to align with how much you're able to put aside each month.\nMaking the right investments requires doing a lot of research to understand what you're putting your money into and how risky it is. This research can be critical for successful investing, so don't feel intimidated by looking up company or specific mutual fund for more information. There are also ways to get around doing your own research if you just want to get started—more on that later.\nHere are some of the most common investments and a little bit about how each one works:\n*   **Individual stocks**: When you buy stocks, you're essentially buying a part of a company. Stock prices increase and decrease according to a company's value, and your investment grows (or doesn't) in direct relation to the company's performance. Imagine you buy 10 shares in a company at $5 apiece. If the company's share price increases to $8, the total value of your investment will increase from $50 to $80. That $30 dollar difference is called your return.\n*   **Bonds**: When you buy a bond, you're giving a corporation or government entity a small loan in exchange for an IOU. You can sell the IOU (the bond) at a later date and earn the accumulated interest, plus principal, paid by the bond issuer. Bonds are generally less volatile investments than stocks and can be a safe place to start for someone looking for an investment with little risk.\n*   **Mutual funds**: These investment vehicles pool together money from different investors and use that cash to buy stocks, bonds and other securities. This portfolio of investments is either actively managed by a fund manager or linked to one of the stock indices, such as the S&P 500. When you buy a mutual fund, you'll own a share of the fund and may gain a level of diversification and security you might not otherwise be able to achieve on your own or by owning just one company's stock.\nIf you invest your money in stocks, bonds and mutual funds and not in a physical commodity, such as metals or a rental home, your money will end up in one or more of the investments listed above. How you choose to allocate it and what you choose to invest in is up to you. END
 TITLE: How to Start Investing CONTENT: How to Begin Investing\n----------------------\nTo get your feet wet, consider contributing to your employer-offered 401(k) plan, if you have one. Retirement accounts—like a 401(k) or an IRA— are managed investments that help you spread your money across different types of securities, such as stocks, bonds, mutual funds and more. These accounts typically have a fund advisor who can help teach you what types of investments are available and assist you in choosing which one may be right for you. They'll also help teach you about how investing works and can be a good stepping stone to taking on other investments down the line.\nIf you're already contributing to your 401(k) and are ready to do some investing on your own, you should consider whether you want to seek the assistance of a financial advisor or a \"robo-advisor.\" Financial advisors are people you work with to develop an investment strategy based on your financial profile. These advisors charge a fee for their services and sometimes have a minimum account size they'll take on.\nHow Investments Affect Your Credit\n----------------------------------\nInvesting typically has no effect on your credit scores, as investment accounts are not listed in your credit report and, in most cases, credit checks are not needed to purchase investments. Investments also don't involve borrowing, and as a result, no record of repayment is created.\nOne of the few exceptions to this is if you want to open a margin trading account, which may require that you authorize a credit check. Margin accounts allow you to borrow money from your brokerage to make trades with cash you may not have liquid at the time. The brokerage uses your existing investment portfolio as collateral for your loan. When you apply for a margin account, the brokerage will probably check your credit, which will result in a hard inquiry being listed in your credit reports.\nOverall, investing extra money you have may be able to help you build wealth over time. While it takes time and attention, the payoff is worth it for many investors. Remember that all investing involves some level of risk, so make sure you have all your personal finances in order before allocating too much of your money toward building your investment portfolio. END
 TITLE: How to Start Investing CONTENT: How Investments Affect Your Credit\n----------------------------------\nInvesting typically has no effect on your credit scores, as investment accounts are not listed in your credit report and, in most cases, credit checks are not needed to purchase investments. Investments also don't involve borrowing, and as a result, no record of repayment is created.\nOne of the few exceptions to this is if you want to open a margin trading account, which may require that you authorize a credit check. Margin accounts allow you to borrow money from your brokerage to make trades with cash you may not have liquid at the time. The brokerage uses your existing investment portfolio as collateral for your loan. When you apply for a margin account, the brokerage will probably check your credit, which will result in a hard inquiry being listed in your credit reports.\nOverall, investing extra money you have may be able to help you build wealth over time. While it takes time and attention, the payoff is worth it for many investors. Remember that all investing involves some level of risk, so make sure you have all your personal finances in order before allocating too much of your money toward building your investment portfolio. END
 TITLE: What Is a Reverse Mortgage? CONTENT: How a Reverse Mortgage Works\n----------------------------\nReverse mortgages are designed for people who are retired and plan to stay in their homes for the long term, own their homes outright or have substantial equity, and need extra money to help with daily expenses. Typically, these are seniors who are living on a pension or Social Security without much other retirement income. As health care and cost of living expenses rise, their fixed income may not keep pace with their financial needs.\nA reverse mortgage allows these homeowners to extract the equity they have built up in their homes by using their homes as collateral for a loan. The amount you can borrow is based on a combination of factors, including the borrower's age, the appraised value of the home and current interest rates. The loan proceeds can be taken as a lump sum, line of credit, fixed monthly disbursement, or a combination of a line of credit and a monthly disbursement. Learn more about how reverse mortgages work. END
 TITLE: What Is a Reverse Mortgage? CONTENT: Types of Reverse Mortgages\n--------------------------\nThere are three types of reverse mortgages:\n1.  **Single-Purpose Reverse Mortgage**: Nonprofit organizations or state and local government agencies sometimes offer this type of reverse mortgage. The lender restricts the purposes the mortgage proceeds can be used for. For instance, you might be able to use a single-purpose reverse mortgage only to pay your property taxes or to make improvements to the home.\n2.  **Home Equity Conversion Mortgage**: This is the most popular type of reverse mortgage and offers the most flexibility. HECMs are insured by the Federal Housing Administration (FHA) and are limited to a maximum of $725,525 as of 2019. The proceeds of the loan can be used for any purpose you want.\n3.  **Proprietary Reverse Mortgage**: If your home is worth more than $725,525, or if your home doesn't meet the FHA standards for a HECM, you may want to look into a proprietary reverse mortgage. Offered by private lenders, these loans can be used for any purpose, and there's no limit on the amount you can borrow. END
 TITLE: What Is a Reverse Mortgage? CONTENT: What Are Reverse Mortgage Requirements?\n---------------------------------------\nThe requirements for getting a single-purpose or proprietary reverse mortgage vary depending on the lender. All HECMs have the same requirements:\n*   The home must be your primary residence.\n*   You must either own the home outright or have substantial equity in it.\n*   The property itself must meet FHA standards and flood requirements. It must be either a single-family home, a manufactured home, a condominium approved by the Department of Housing and Urban Development (HUD) or a two- to four-unit home with the borrowers living in one of the units.\n*   The borrowers must be age 62 or older.\n*   Borrowers must be able to pay the expenses associated with the home, such as property taxes, homeowners association fees and homeowners insurance, without the assistance of the loan.\n*   Borrowers are required to meet with a HUD-approved HECM counselor to discuss the reverse mortgage.\n*   Borrowers must be creditworthy and cannot be delinquent on any federal debt. END
 TITLE: What Is a Reverse Mortgage? CONTENT: What Credit Score Do I Need for a Reverse Mortgage?\n---------------------------------------------------\nYou don't need a specific credit score to qualify for a reverse mortgage. However, lenders will assess your finances to make sure that you can pay the costs associated with your home and still have enough to live on. They'll also review your credit report to make sure you're generally creditworthy. Specifically, they'll check for:\n*   Payment history for mortgage and installment loans for the last two years\n*   Revolving credit payment history\n*   Collections, charge-offs, judgements or delinquent FHA-insured mortgages\n*   Bankruptcies\nIf you are delinquent on any federal loans, you will not be eligible for a HECM. If your credit report shows that you have defaulted on debt in the past or that you frequently make late payments to creditors, the reverse mortgage lender may ask you to set up a Life Expectancy Set Aside (LESA) account to be approved. You'll put money into this account to cover the cost of property taxes and homeowners insurance. If at some point you aren't able to pay these costs yourself, your lender can tap into the LESA to do so.\nA LESA can add substantially to the cost of a reverse mortgage, so before you apply, be sure to check your credit report for anything that could make it difficult to get approved without setting up a LESA. END
 TITLE: What Is a Reverse Mortgage? CONTENT: What Are Reverse Mortgage Advantages?\n-------------------------------------\nA reverse mortgage offers several advantages for people who are retired and need extra income.\n*   Home equity is more accessible to retirees than many other types of financing. Many seniors don't have enough income to qualify for loans that require immediate repayment, such as a home equity line of credit or a second mortgage. It's easier to qualify for a reverse mortgage.\n*   As long as you are living in your home; keeping current on property taxes, homeowners insurance and other associated home expenses; and maintaining the home in good condition, you won't have to repay the loan.\n*   Because the IRS classifies the payouts as a loan advance, a reverse mortgage offers tax-free income in most cases (although you should always consult a tax professional to be sure how taxes apply in your situation). END
 TITLE: What Is a Reverse Mortgage? CONTENT: What Are Reverse Mortgage Drawbacks?\n------------------------------------\nWhile reverse mortgages offer some appealing advantages, there are also some significant disadvantages to a reverse mortgage that you should be aware of.\n*   Although reverse mortgages are tax-free, they aren't without cost. You'll have to pay for an appraisal of your home's value; cover substantial closing fees, including a loan origination fees, servicing fees and third-party fees; and make ongoing mortgage insurance payments. You'll also accrue interest on the amount paid out to you. Depending on how you choose to receive your loan disbursements, this may be calculated as fixed or variable interest; be sure you know which applies in your case.\n*   The loan must be repaid when you die, sell your home or move out of the home. This can cause problems if your house is part of the inheritance you hope to leave to your children. Unless your heirs can afford to pay off the loan, the lender will sell the house to do so. (Your heirs will receive any money that's left over.)\n*   If more than 12 months pass during which you aren't using the home as your primary residence, the loan will come due. This can happen if you have to stay in a rehab facility after a fall or need to move in with your children for an extended period after surgery or a medical issue. If you have a reverse mortgage, you will have to repay the loan to prevent the bank from selling your home to recoup the loan.\n*   If one spouse is under age 62, they may have to be removed from the property deed for the older owner to qualify for a reverse mortgage. Removing their name on the title can put the non-borrower spouse at risk. If the borrower dies, the non-borrower will no longer receive reverse mortgage disbursements. Worse, they could lose their home if they can't pay off the loan. END
 TITLE: What Is a Reverse Mortgage? CONTENT: Is a Reverse Mortgage the Right Option for Me?\n----------------------------------------------\nIf you are struggling with living expenses in retirement, is a reverse mortgage a good choice? That depends.\n*   As long as you can easily pay the costs associated with your home, such as property taxes, a reverse mortgage may offer the extra income you need to cover other costs, such as health care. However, if you're already struggling to cover the costs of homeowners insurance, property taxes and home maintenance and repairs, a reverse mortgage probably isn't right for you.\n*   If you are planning to move out of your home in the near future, a reverse mortgage isn't a good option. Reverse mortgages are best for those who plan to remain in their homes for the long term.\n*   A reverse mortgage isn't the only way the equity in your home can help finance retirement. Another alternative is downsizing to a smaller home and using the proceeds from the sale of your current home for living expenses. This can also help you meet non-financial needs, such as finding a home that's close to your adult children, requires less yard work or is more suitable for aging in place.\nAs you weigh your options, a good place to start is by getting a free credit report to see if there are any issues that might hold you back from getting a reverse mortgage. END
 TITLE: How to Manage Your Money CONTENT: Create a Budget\n---------------\nA budget is a spending plan for your money that ensures you'll have enough for the things you need and that are most important to you. To create a budget, follow these steps.\n### Take Inventory of Your Finances\nBy taking an inventory of your finances, you can get a clear picture of what you own, what you owe and how you're spending your money. To begin, write down your assets, which may include your house, investments, cars and savings account balances.\nThen, jot down your debts, which might include student loans, car loans, personal loans, credit card balances and more. Next, keep track of every purchase you make for the next few months.\nYour financial inventory may reveal that your grocery or restaurant spending is out of control or that you are spending more than you make or have more debt than you thought you had. It will give you an idea of how you're doing financially and where you need to improve.\n### 2\\. Choose a Budget Plan\nThe budget plan you choose will depend on your strengths and weaknesses when it comes to money and your unique financial goals. Here are a few options to consider:\n*   **The envelope system**: If you wish to stop careless spending or stay out of debt, the envelope system may be a good choice. Set a monthly spending limit for each expense category, such as gas, groceries and entertainment, and fill an envelope with only the amount of cash you want to spend for that category. Once the envelope is empty, don't allow yourself to spend more money on that particular category for the rest of the month.\n*   **Pay yourself first**: The pay yourself first budget may be right for you if you have difficulty saving money. You decide how much you'd like to set aside for your emergency fund, retirement fund and other savings accounts, and then use the rest on your monthly expenses and discretionary spending.\n*   **Zero-based budget**: You may benefit from the zero-based budget if you'd like a strict plan for your money. With the zero-based budget, you take your income and allocate every dollar in some way until there are zero dollars left. By budgeting your essential and discretionary money down to the penny—including everything from rent and utilities to savings to eating out—you can make sure your money goes exactly where you want it to every month.\n### 3\\. Review Your Budget Monthly\nAt the end of every month, sit down and review your budget to make sure you're staying on track. Compare your actual expenses to what you created in your budget to figure out where you did well and where you need to improve.\nDuring your monthly budget review, you may find you need to tweak your budget as a result of a change in your income, expenses, goals or all of the above. This is fine, as your budget is bound to change as you go through different stages of your life. END
 TITLE: How to Manage Your Money CONTENT: Manage Your Debt\n----------------\nManaging your debt is an important part of financial management. These tips can help you take control of your debt and become debt-free faster.\n### Check Your Credit Report\nBy checking your credit report, you can figure out which creditors you owe money to and get an idea of your creditworthiness or how a creditor may view you as a borrower. If you're unhappy with your credit, rest assured you don't have to live with it forever. By taking steps to improve your credit, such as always paying your bills on time and reducing how much credit you're using, you can improve it.\n### List Everything You Owe\nCreate a comprehensive list of all of your debts. Write down all of your creditors, as well as how much you owe them and when your payments are due. By clearly listing everything you owe, you can reduce your risk of missing payments and develop an effective debt repayment strategy.\n### Choose How You Want to Tackle Your Debt\nThere are a variety of ways you can pay off your debt. Three of the most popular debt repayment strategies on revolving debts such as credit cards include the debt snowball, debt avalanche and debt consolidation approaches.\n*   **Debt snowball approach**: The debt snowball strategy involves putting as much money as you can toward your debt with the lowest balance first while making the minimum payments on your other balances. As soon as you repay the first debt, you'll take the amount of money you were applying toward it and add it to the minimum payment you were making on your second-lowest debt.\n    Because this payment on your second-lowest debt is a combination of what you paid toward the first loan and the minimum payment you were already paying on the second, you're \"snowballing\" your payments. You'll continue to pay your accounts off this way and knock out each debt until you're debt-free.\n*   **Debt avalanche approach**: With the debt avalanche strategy, you list your debts in order from the one with the highest interest rate to the one with the lowest interest rate while ignoring the balances. Then you focus on repaying the debts with the highest interest rates first and eventually make your way to the lower interest debts. Using this strategy can help you save a significant amount of money on interest.\n*   **Debt consolidation approach**: Debt consolidation is the process of rolling your high interest debts like credit card bills into a single payment with a lower interest rate. If you're overwhelmed with all of your debts, this strategy can reduce the total debt you owe while allowing you to organize it in one account so it's easier to track. END
 TITLE: How to Manage Your Money CONTENT: Develop Good Credit Habits\n--------------------------\nGood credit can help you achieve milestones like buying your first home or car. It can also lead to lower interest rates and more favorable terms that can save you thousands or even hundreds of thousands over your life. To develop good credit, be sure to do the following:\n*   **Monitor your credit.** Your credit report contains information about your credit history and is evaluated by lenders when you apply for loans. By monitoring your credit, you can detect and dispute errors and inaccuracies and get an idea of where you stand financially. If you find that you don't have the best credit, you may want to focus on rebuilding it before you do things like take out a mortgage or apply for a personal loan.\n*   **Use credit cards wisely.** By being responsible with credit cards, you can stay out of debt, rebuild your credit and even redeem some rewards. Paying your balances on time and in full, keeping your balances low, and only swiping for large purchases when you have the cash to pay them off can keep you out of credit card trouble.\n*   **Apply for credit only when you need it.** Every time you apply for credit, a hard inquiry will appear on your credit report and can lower your credit score. To keep your credit score in good shape, apply for credit only when you need it. Multiple credit inquiries in a short time frame may signify you're living above your means or struggling financially. END
 TITLE: How to Manage Your Money CONTENT: Start Saving\n------------\nSaving money can help you meet your short- and long-term financial goals. Whether you'd like to retire by a certain age, buy your first house or fund your child's college, saving is essential. Here are money-saving tips that can help you out:\n*   **Create an emergency fund.** Emergencies happen when we least expect them, making an emergency fund crucial. With an emergency fund, you can pay for unexpected expenses such as car repairs and medical bills without getting into debt. Start by saving $1,000 in your emergency fund and eventually save enough to cover three to six months' worth of expenses.\n*   **Save for retirement.** The sooner you start saving for retirement, the more time your money will have to grow. To save for retirement, take advantage of your employer's tax-advantaged retirement plan such as a 401(k). If you don't have access to an employer plan, you can still save money for retirement with a traditional IRA or Roth IRA.\n*   **Cut expenses.** By cutting your expenses, you'll have more cash on hand to save. Take a look at what you currently spend money on and see where you can save. You can move to a smaller house, get rid of cable, buy generic instead of brand-name items at the grocery store, and cook more, just to name a few ways to cut back. END
 TITLE: How to Manage Your Money CONTENT: Try Investing\n-------------\nOnce you're debt-free and have an emergency fund in place, it's a good idea to start investing. Investing can help you build wealth, retire, save on taxes and meet other financial goals like paying for your child's college. You can invest in individual stocks, bonds, mutual funds, retirement accounts and more.\nIf you're new to investing, consider a mutual fund, as it will allow you to invest money across a variety of securities without having to do your own intense research. Better yet, consider consulting a financial advisor or \"robo-adviser\" (online advising that is mostly automated) to guide you in the right direction. END
 TITLE: How to Manage Your Money CONTENT: Managing for the Future\n-----------------------\nThe way you manage your money impacts where you live, how you spend your time and what your future holds. By managing money efficiently—and starting sooner rather than later—you can meet your financial goals and have a better chance of living the life you want. END
 TITLE: What Is a Bankruptcy Discharge? CONTENT: What Debts Can Be Discharged?\n-----------------------------\nOnce a debtor has filed for bankruptcy and met the requirements outlined in the chapter under which they filed, they may be eligible to have some of their debts discharged. While not all debts fall into this category, the following are examples of debts that may be discharged.\n*   Credit card debt\n*   Medical bills\n*   Loans from family or friends\n*   Business debt\n*   Utility bill debt\n*   Debts incurred as a result of your willful or malicious injury of an entity\n*   Attorney fees\n*   Contractual debts\n*   Unsecured debt\n*   Judgments\n*   Civil court judgments\n*   Missed rent payments\n*   Certain tax debts END
 TITLE: What Is a Bankruptcy Discharge? CONTENT: What Debts Can't Be Discharged?\n-------------------------------\nDepending on which type of bankruptcy is filed, there are certain types of debts that cannot be discharged. The following types of debt are not dischargeable under the specific chapters listed below.\n#### Chapter 7\n*   Criminal fines\n*   Student loans\n*   Car loans\n*   Court fees\n*   Child support and alimony\n*   Debt secured by a lien\n*   Court costs\n*   Debts that result from you maliciously or willfully injuring another person or entity\n*   Debt that results from death or personal injury while driving under the influence\n*   Mortgages\n#### Chapter 13\n*   Mortgages\n*   Child support and alimony\n*   Certain tax debts\n*   Student loans\n*   Debt that results from death or personal injury while driving under the influence\n*   Criminal fines\nThe following debts can be discharged, but the discharge may be stopped if a creditor files a motion in court requesting that the debt be declared non-dischargeable.\n*   Debt that was a result of fraud\n*   Civil court judgements END
 TITLE: What Is a Bankruptcy Discharge? CONTENT: What Happens After a Bankruptcy Discharge?\n------------------------------------------\nOnce a final order of discharge is issued in a bankruptcy case, the court clerk will send official copies of the discharge notice to all the creditors involved. This notice is also sent to the trustee (the person appointed to oversee a bankruptcy case) and the trustee's lawyer in addition to the debtor and their lawyer.\nThe discharge notice is meant to let creditors know that they can no longer contact you asking for payment on your debt. If creditors continue to contact you after a discharge notice has been issued, you can file a motion in court and the creditor may be sanctioned as a result.\nHowever, creditors who provided you with a loan secured by a lien—on property such as a car or home—can attempt to repossess that property after a discharge is issued. If this happens to you, speak with a bankruptcy attorney to learn more about whether you can defend against the action. END
 TITLE: What Is a Bankruptcy Discharge? CONTENT: How a Bankruptcy Discharge Affects Credit\n-----------------------------------------\nOnce you file for bankruptcy, a record of it will appear in your credit files and will remain there for a period of time. Chapter 7 bankruptcies remain on your credit reports for 10 years from the initial date of filing, and Chapter 13 bankruptcies stay on your reports for seven years from the date of filing.\nAs long as a record of the bankruptcy is listed in your reports, it will have a negative impact on your credit scores. Once you receive a discharge for the bankruptcy, the record will change in your credit file and a record of the discharge will appear. Each of the accounts discharged as part of the bankruptcy should also be updated to show a zero balance.\nIf you've received a bankruptcy discharge and do not see a record of it in your credit reports, you can request an update to your credit reports with the three main credit bureaus (Experian, TransUnion and Equifax). To process this update with Experian, you'll be required to provide a \"schedule\" document from your bankruptcy records to show evidence of the debts included in your discharge.\nIf you're not sure what appears in your credit file, consider getting a free copy of your credit report and score from Experian to see what's recorded in your credit history. If your report contains any errors, make sure to file a dispute with one or more of the three main credit bureaus to get the mistake removed from your file as soon as possible. END
 TITLE: Is an FHA Loan Right for You? CONTENT: An FHA loan is a mortgage insured by the government through the Federal Housing Administration, though you apply for and obtain the loan through a regular lender, like a bank or credit union. These loans are geared toward first-time homebuyers since the borrowing criteria are more lenient than with a conventional loan.\nOne of the main draws of FHA loans is you can put down as little as 3.5%, and the interest rates and terms are favorable for new borrowers. However, in exchange for these perks, you'll have to pay mortgage insurance for the life of the loan. END
 TITLE: Is an FHA Loan Right for You? CONTENT: How FHA Loans Work\n------------------\nFHA loans are issued by lenders, but they're insured by the government. This means if a borrower fails to repay a lender who issues an FHA-qualified mortgage, the FHA covers the lender's financial loss.\nIn exchange for this protection, the FHA requires loans offered under its program to meet certain borrowing criteria. But because these loans are government-backed and intended for first-time homebuyers, borrowing requirements are more lenient than those of conventional loans.\nThe downside of the more generous standards is that most FHA loans require you to pay mortgage insurance for the life of the loan. (The only way to get out of it is to put down at least 10%, and then the mortgage insurance drops off after 11 years.) Conventional loans, on the other hand, only require mortgage insurance until you reach 20% equity in the home. END
 TITLE: Is an FHA Loan Right for You? CONTENT: When Is an FHA Loan a Good Idea?\n--------------------------------\nFHA loans make sense if you don't have much saved for a down payment, or if your credit score isn't in good enough shape to qualify you for a conventional loan. It could also be the right choice if you're worried your interest rate will be too high with a conventional loan, or if you'd like to finance some of your closing fees.\nHere's why an FHA loan may be attractive if you meet any of these criteria:\n*   **Low down payment requirements.** If your FICO® Score☉ is 580 or higher, you can get an FHA mortgage with a down payment of just 3.5%. While some conventional loans now permit down payments as low as 3%, they're not easy to obtain if your credit isn't in great shape.\n*   **Low minimum credit score requirement.** The FHA threshold for a 3.5% down payment, a FICO® Score of 580, is at the low end of the range for subprime borrowers. But if you can make a down payment of 10%, you can qualify for an FHA loan with a FICO® Score as low as 500.\n*   **Favorable interest terms.** The annual percentage rate (APR) on an FHA loan is typically 1.5 to 2 points higher than those for conventional fixed-rate mortgages available to borrowers with good to excellent credit. But FHA rates are usually lower than introductory rates on subprime mortgages. Plus, FHA loans have fixed interest rates, while most subprime loans have adjustable rates that can increase significantly after an introductory period of three to five years.\n*   **Option to finance closing fees.** Lenders charge numerous fees for processing your mortgage, and with traditional mortgages, they must be paid in full when you close on the home. These fees add up to thousands of dollars, and not everyone can afford to pay them out of pocket. The FHA allows some of these fees to be rolled into the loan financing, so you can pay them off over time instead of having to come up with a large chunk of change at closing. Keep in mind that closing fees vary from lender to lender, and they also roughly correspond to your credit scores, with lower scores requiring a higher amount of closing costs. END
 TITLE: Is an FHA Loan Right for You? CONTENT: What Are the Downsides of an FHA Loan?\n--------------------------------------\nWhile an FHA loan can be a lifesaver if you want to buy a home and have limited cash on hand or a not-so-great credit score, these loans do have some drawbacks you should be aware of before you apply.\n*   **Very strict appraisal standards.** The U.S. Department of Housing and Urban Development (HUD) has stringent property appraisal standards that exclude many properties from FHA loan eligibility. The home also has to be your primary or principal residence, so you can't use it as an investment property (though FHA loans can be used for some multi-unit properties up to four units). Mobile homes and other prefabricated dwellings can qualify, but many condominiums cannot.\n*   **Mandatory mortgage insurance.** Borrowers with lower credit scores are statistically more likely to miss payments or default on their loans than people with higher credit scores, so lenders require FHA borrowers to pay mortgage insurance to mitigate the risk. Per FHA guidelines, the cost of this insurance is spread across two payment types:\n    *   A single bulk payment of 1.75% of the loan amount is due at closing. Like other closing costs, this can be included in the loan financing.\n    *   An additional annual premium of 0.45% to 1%, depending on the loan's term, down payment and amount, is added to your monthly payments.\nWhile it's convenient to be able to roll the bulk mortgage insurance payment and other closing costs into your FHA loan, it raises your monthly payment, and you could be adding tens of thousands of dollars to the amount you'll pay over the life of the loan. It may be worth it for the opportunity to buy a home of your own, but it's important to be aware of the potential cost. END
 TITLE: Is an FHA Loan Right for You? CONTENT: How Do I Get an FHA Loan?\n-------------------------\nIf an FHA loan sounds like the right fit for you, here's how to obtain one:\n*   First, make sure you meet the minimum qualifications. Check your credit score so you know if you meet the FHA's eligibility standards. You'll also need proof of steady employment history and a valid Social Security number. You can use FHA's free housing counselor search tool or [smartphone app](;mt=8) to find local sources of advice on whether you qualify for an FHA mortgage, and for guidance on securing the necessary down payment. A qualified counselor can be a big help with navigating the paperwork you'll need to obtain an FHA loan.\n*   Ready to apply? Check out the FHA website to find qualified lenders in your area. You can also look into online lenders such as QuickenLoans. As with any other loan type, lenders set their own interest rates, credit score requirements and fees, within the scope of FHA guidelines. That means you can—and should—shop around to get the best possible deal. Just a fraction of a percentage point difference in interest can save you thousands of dollars over the life of a 30-year loan.\n*   If you qualify for a 3.5% down payment FHA loan, consider paying a higher down payment than the minimum required if possible. Or consider paying some or all of the closing costs on the date of sale rather than financing them. (Consult a counselor to see which scenario is more beneficial to you.) Taking these steps can save you a lot of cash over the long haul. END
 TITLE: Is an FHA Loan Right for You? CONTENT: Other Options for Getting a Mortgage\n------------------------------------\nIf an FHA loan doesn't sound like the right mortgage for you, there are numerous other options for first-time homebuyers. Here are a few:\n*   If your credit is higher than what's required for an FHA loan, you could check and see if you qualify for a conventional loan, especially since many lenders now offer ones with low down payments.\n*   If you are a current or former military service member or spouse, you might be eligible for a VA loan. These government-backed mortgages allow for zero down payment and have no mortgage insurance requirement.\n*   Those who are low income earners and want to buy a home in a rural area could qualify for a USDA loan. These government-backed loans come in two types, but both allow for low or no down payment, and the interest rate is low. END
 TITLE: Is an FHA Loan Right for You? CONTENT: Compare the Pros and Cons\n-------------------------\nOnce you've obtained your free credit score and determined whether you might qualify for an FHA loan, take a close look at the insurance costs and consider whether the benefits outweigh it. Depending on your unique situation, you might either be better off with a different type of mortgage, or an FHA loan could be the key to your dream home. END
 TITLE: When Can I Refinance My Home? CONTENT: Depending on the situation, it's possible to refinance a mortgage loan immediately. In some circumstances, however, you may need to wait:\n*   If you want to do a cash-out refinance and gain access to some of the equity you have in the home, the waiting period can be at least six months after your current mortgage loan closed.\n*   If your original loan was modified to make payments more affordable, you might need to wait up to 24 months before you can refinance it.\n*   If you want to refinance an FHA loan with an FHA Streamline Refinance, the waiting period is 210 days.\nEven if you can refinance your loan shortly after getting it, there are some things to consider before you do so.\nFor starters, some mortgage lenders have pre-payment penalties that kick in if you refinance your loan or sell your home within three to five years. Also, getting a mortgage can affect your credit scores, so if you apply for a refinance loan shortly afterward, it could influence your qualification requirements, making it difficult to get a new loan to replace the old one.\nFinally, some lenders may require a waiting period between loans, which can limit your options when looking for a loan with the best terms for your needs. END
 TITLE: When Can I Refinance My Home? CONTENT: When Is It a Good Idea to Refinance Quickly?\n--------------------------------------------\nWhile the idea of refinancing a mortgage soon after getting the first one may sound odd, there are some clear benefits that can make it an excellent choice in certain circumstances:\n*   **Lower monthly payments**: If your financial situation has changed and you need a lower monthly payment, refinancing could make it possible to get a loan with a longer term. And if interest rates have dropped since you first got the loan or your credit score increased dramatically, qualifying for a lower interest rate could also reduce how much you owe each month.\n*   **Eliminated private mortgage insurance (PMI)**: Conventional mortgages typically require PMI if you put down less than 20% of the loan amount at closing. If, however, the value of your home increased quickly or you've made a large payment and qualify to get rid of it, refinancing could save you money. Also, some government-insured loans charge mortgage insurance, and refinancing one into a conventional loan could get rid of it.\n*   **Change in interest rate structure**: Borrowers can choose a fixed- or adjustable-rate mortgage (ARM). While an ARM can save you money upfront with a lower fixed interest rate for a set period, it becomes variable once that period ends. If you notice that interest rates are rising and want to lock in a low fixed interest rate to avoid taking on too much risk, refinancing can allow you to do that.\n*   **Equity cash-out**: If you need cash fast and want to avoid high-cost loans, doing a cash-out refinance will give you access to some of the equity in your home at the cost of the new mortgage loan.\n*   Borrower removal: If you were recently divorced and both spouses were on the loan, it may be a good idea to refinance the mortgage into the name of the person who plans to live in the home. END
 TITLE: When Can I Refinance My Home? CONTENT: What Should I Consider Before Refinancing?\n------------------------------------------\nWhile refinancing a mortgage loan can provide a lot of benefits, there are some things that could make you think twice about starting the refinance process:\n*   **Loan costs**: Mortgage loans, including refinance loans, typically include closing costs that can range from 2% to 5% of the loan amount. If your mortgage is $200,000, that's between $4,000 and $10,000 that can eat into the potential savings or other benefits you'd get from refinancing. It's essential that you take the time to calculate your potential savings from a refinance compared with the costs to close the loan.\n*   **Other costs**: If you're refinancing your loan to get rid of one form of mortgage insurance, it's possible that the new loan will require another form. Make sure you understand the terms of each mortgage type to get an idea of what your ongoing costs will be. Also, pre-payment penalties can make it difficult to get out of your original loan.\n*   **Credit situation**: If your credit scores have changed since you got your first loan, it could affect your chances of getting approved for a refinance loan with more favorable terms. The same goes if your debt-to-income ratio (DTI)—your monthly debt payments relative to your monthly gross income—has increased in the meantime.\nThere are many good reasons to refinance a mortgage loan, but carefully consider these things to make sure your reason is good enough. END
 TITLE: When Can I Refinance My Home? CONTENT: Will Refinancing Affect My Credit Score?\n----------------------------------------\nVirtually every time you apply for a loan, the lender will run a hard inquiry on your credit report. This inquiry can knock a few points off your credit score. If you're applying for multiple mortgage loans, each additional inquiry can have a compounding effect on your score, dropping it further.\nAs a result, it's best to do all your rate shopping in a short period (typically between 14 and 45 days), during which all your inquiries will be counted as one for credit scoring purposes.\nAlso, closing out your old mortgage loan and replacing it with a new one can negatively affect your credit score because it lowers the average age of your credit accounts.\nBecause refinancing can have an impact on your credit, it's important to make sure your credit is in good shape before you start the process. END
 TITLE: When Can I Refinance My Home? CONTENT: Next Steps\n----------\nIf you're planning to refinance your mortgage loan and understand both the benefits and drawbacks, compare multiple lenders to ensure you get the best terms available.\nAlso, take your time when weighing the savings or other benefits against the costs of getting the new loan. While it may make sense in the short term to refinance, there are some situations where it could cost you more in the long run.\nAs you go through the process, check your credit score regularly to keep track of where you stand and address any potential issues that arise and can hurt your chances of getting approved. END
 TITLE: How to Get an Apartment With Bad Credit CONTENT: What Credit Score Do You Need to Rent an Apartment?\n---------------------------------------------------\nLandlords, like banks and creditors, check your credit score to determine your ability to pay your bills on time. A potential landlord will use your credit score to gauge how much of a risk you are: The higher your score, the lower your tenant risk profile, and vice versa.\nA FICO® Score☉ of 620 is considered fair credit, and is often the starting point for landlords.\nProperty managers and landlords are allowed to run your credit and may deny your application based on it. Usually, however, your credit score is just a starting point. What may matter more is what's on your credit report, and how you ended up with the credit score you have. END
 TITLE: How to Get an Apartment With Bad Credit CONTENT: Can You Rent an Apartment With Bad Credit?\n------------------------------------------\nThe short answer is yes, you can rent an apartment with bad credit. However, you need to be strategic about how you secure the rental. Here's how to position yourself as the strongest applicant and get your apartment, despite your credit.\n### 1\\. Pay More Upfront\nMost landlords and property managers require a security deposit and the first month's rent upfront to get into a property. If you want to make a good impression, pay two or more months' rent in advance or offer a larger security deposit. This will give your landlord peace of mind while you demonstrate your commitment to restoring your creditworthiness.\nPaying more in advance will also put you ahead of the rental schedule. Even if you are required to use an extra payment as a deposit upfront, keeping your payments ahead of schedule in excess of any deposits will build trust with the landlord. In some cases it can also be arranged to act as a buffer should you have financial challenges in the future.\n### 2\\. Find a Cosigner\nIt can be difficult to ask a friend or family member to cosign your lease, but it can help you to get into an apartment. If you have someone who is willing to cosign, make sure they have good credit and a history of timely mortgage or rental payments. Last, make sure your cosigner knows what they are getting into because if you default on a rental agreement, you both will be held accountable for it.\nBecause cosigning presents a risk for the cosigner, make sure that you can financially commit to a rental agreement before you move forward. Failing to honor a commitment after enlisting the help of a cosigner can damage your credit—and your relationship.\n### 3\\. Bring Documents and References\nYour credit score is just one part of the story that makes up your consumer profile. If your score is low, submit with your application documents that tell the rest of the story and demonstrate that you are a credible applicant capable of paying your rent every month. Here's what to bring:\n*   **Proof of a responsible rental history.** Bring copies of payments you've made for your last rental, if applicable. Your previous landlord may not have reported your payments to the credit bureaus. Bank statements can prove you've been on time with your payments.\n*   **Letters of recommendation.** Request reference letters from past landlords, property management companies, employers, roommates or business associates. Make sure your reference letters are from credible sources: A letter from a friend or relative who has no experience working with you or receiving payments from you won't do much for your case.\n*   **Paystubs as proof of employment.** A landlord will likely ask for proof of employment. Try to present pay stubs that go back several months, not just a couple weeks, to show you have a steady job.\n*   **Utility payments.** Proof you've made your utility payments on time every month also shows you're reliable, dependable and consistent.\nBy bringing documents to your interview with the landlord, you can fill in the gaps in your credit report or balance out your profile if your score does not accurately reflect your credit history.\n### 4\\. Search for Apartments That Don't Require a Credit Check\nMost established property owners require a credit check before they'll rent to you. There are, however, landlords who do not require a credit check. These properties often are less desirable, but may show you can be trusted to pay your rent while you're also building your credit.\nTo find a place that doesn't require a credit check, start by looking for apartments on Craigslist, Facebook Marketplace or the local newspaper's classified ads. If you're patient and do a thorough enough search, you should be able to find a place where your credit score isn't part of the evaluation process.\n### 5\\. Consider a Roommate\nIf you're trying to rent an apartment with bad credit, a landlord may be more willing to accept your rental application if you share the rent with one or more roommates. Just make sure a landlord pulls your roommate's credit report first.\nAnother option is to move in with someone who already lives in an apartment or property for rent. You may still have to undergo a credit check, but your payments will be lower and your roommate may still assume responsibility for the apartment. You simply pay them, and they pay the landlord. Like having a cosigner, this arrangement will be built on the premise that you'll make all your payments on time. Before entering into a subletting agreement, check your lease agreement to make sure it's allowed.\n### 6\\. Readjust Your Expectations\nThe apartment you want and the apartment you qualify for may differ. The one you can qualify for may not have a pool, workout room or built-in cable package. It may even be on the less-desirable side of town, or could require a longer commute.\nBy readjusting your expectations and treating this period as a \"rebuilding\" experience, you will give yourself time to rebuild your credit. As a bonus, paying less for a smaller space or fewer amenities allows you to keep that extra cash in your pocket. END
 TITLE: How to Get an Apartment With Bad Credit CONTENT: What Do Landlords Look For on a Credit Report?\n----------------------------------------------\nWhile you're doing all you can to show potential landlords that you are a worthy applicant, you should also be aware of what they are looking at on your credit report. Even if you've used the strategies above and have rented an apartment, it's important to find ways to make your next experience smoother while also building your credit. Knowing what a landlord is looking for on your credit report and why is an important first step.\n*   **Payment history**: Creditors report your payment history every month. A landlord can look at your credit report to track your payment habits and determine whether they can expect your rent payment on time, every month.\n*   **Rental history**: If previous landlords reported your payment information to the credit bureaus, your landlord can review your entire rental history. They can also see if you have any outstanding debts, evictions or unpaid rent to a former landlord. These are red flags you'll want to settle right away.\n*   **Debts**: Too many credit cards, loans, medical bills or unpaid taxes are warning signs to landlords and property managers. If a spotty payment or rental history calls into question your ability to pay on time, too many debts call into question your ability to afford monthly rental payments at all.\n*   **Bankruptcy status**: Bankruptcies can stay on your credit report for up to 10 years. Landlords often review bankruptcies to see if the canceled debts were from previous landlords. The upside is that if your bankruptcy is already discharged, you are considered a lower risk to a landlord compared with someone going through a bankruptcy.\nYour payment history, rental history, debt and bankruptcy status are all important parts of your consumer profile. Landlords and rental companies will weigh all these factors to determine whether a tenant-landlord relationship makes sense.\nSo before you apply, take the necessary measures to improve your credit and thus improve your chances of approval. Here's how to do it. END
 TITLE: How to Get an Apartment With Bad Credit CONTENT: How to Improve Your Credit Score Before Getting an Apartment\n------------------------------------------------------------\nIf you're trying to rent an apartment with bad credit and have a few months to spare, concentrate on ways you can improve your credit score. If renting an apartment is your focus, these are the most important steps to follow in the months leading up to applying.\n**Pay all bills on time**: Payment history is the most important factor in your credit score, so making all your payments on time every month will help your score improve and show a strong credit history. Creditors and landlords like to see consistent payments over a long time.\n**Pay down your debts**: Do you have credit card debt? What about an old student loan? If you have time before you plan to get an apartment, focus on paying down your debt. Reducing your balance by paying down your debt can help raise your score.\nIf you're serious about renting an apartment with bad credit, consider getting a free credit report from Experian so you can identify your red flags before applying and work to improve your credit for the long term. END
 TITLE: How to Buy A Foreclosed Home CONTENT: What Is a Foreclosed Home?\n--------------------------\nA foreclosed home is one that has been seized by a mortgage lender (typically a bank, credit union or financing company) after a borrower failed to make required payments on their home loan.\nBecause lenders typically don't want to own these homes long term, it's possible to scoop up a foreclosed home at a bargain. It's important to remember, however, that foreclosed properties are sold \"as is,\" and can have cosmetic and structural problems and financial encumbrances, such as back taxes, that typically aren't concerns when you're buying a home from a builder or private owner. A foreclosure may have been sitting vacant for a period of time, its yards may be overgrown, and the previous owner may have left items behind that'll need to be dealt with. Sometimes, an angry owner even vandalizes a property or strips out expensive wiring or piping before they depart. These issues shouldn't stop you from taking advantage of the potential savings, but it's important to prepare for the hazards.\nForeclosed properties available for sale fall into two broad categories: bank-owned properties and real estate-owned (REO) properties.\nBank-owned properties are in the process of being reclaimed by the lender and put up for auction. It's possible to make an offer for a property before it goes to auction, when the lender may still be working to evict the previous owners, and liens for back taxes or unpaid bills are still attached to the property. Typically by the time a property goes to auction, the lender has settled any liens, but it's wise to double-check the title and factor any such encumbrances into the price you're willing to pay.\nREO properties are typically still owned by the lender, but only after they have failed to sell at auction. These properties may be in a more distressed state than those that sold readily at auction. While they may not be accessible for walk-throughs, it is often possible to do a cursory external inspection to spot issues that can help you narrow your search or adjust your offer price. END
 TITLE: How to Buy A Foreclosed Home CONTENT: 1.  **Find representation.** Look for a mortgage broker or real estate agent with foreclosure experience. If you're new to the foreclosure game, it'll be well worth your while (and the commission) to have the guidance of a seasoned professional. A good agent can help you spot quality bargains, help you avoid buying in neighborhoods with falling property values and point out red flags you might not see.\n2.  **Learn the ropes.** Taking cues from your broker or agent, get familiar with the foreclosure-buying process by following these steps:\n*   Acquaint yourself with resources that list foreclosed properties for sale at the bank-owned and REO phases of foreclosure (more on this below).\n*   Attend a few local foreclosure auctions to watch and learn so you understand the procedures and customs participants follow.\n*   Learn about title searches, how to identify liens and other financial encumbrances, and the process of inspecting properties to quantify potential repair costs.\n*   Consider seeking referrals for professional title searchers and home inspectors who can help you.\n*   Connect with contractors who can assist you with home repairs, painting and landscape. The foreclosed home you buy might need a lot of work to get it move-in ready. If you're into DIY, you can take classes to sharpen your home improvement skills.\n*   Contact an attorney with real estate experience who can offer advice and assist with drafting and reviewing offer letters, sales contracts and other documents.\n4.  **Get preapproved for a mortgage****.** Full-time real estate investors often pay cash for foreclosed homes, making the foreclosure market very competitive. Cash buyers have an advantage, so if you're in a position to use cash, that's great. Financing a foreclosure purchase is also viable, but if you plan to go that route, your purchase offer should include proof that you can pay in short order. It's essential, therefore, that you work with a lender to get prequalified for a loan and have your lender spell out how much you're able to spend.\n5.  **Shop around.** Check out homes comparable to the one you'd like to buy. Properties offered at foreclosure auctions often have not been advertised for sale ahead of time, so all you may have to go on at the time of purchase could be a description, floor plan and a few photos. It's helpful to get an idea of what your budget should be getting you. If you can inspect the properties you're considering (sometimes possible with REO homes), try to estimate the cost of repairs or improvements that might be required.\n6.  **Make your offer.** Make a bid at an auction or work with your broker to negotiate a purchase directly from the lender that holds the title. Note that you may need a sizable cash deposit or cashier's check to secure the purchase. Understand that a foreclosure sale may lack some of the terms common in standard home-sale contracts, such as contingencies for voiding the sale if the property fails an inspection. Craft your offer letter accordingly (too many conditions can bring rejection, even if the price is right) and be sure to factor potential repair costs into your offer price.\n7.  **Close the deal.** Once your offer is accepted, schedule an inspection, work with your experts on any final negotiations and set a closing date.\nResources for Finding Foreclosed Homes\n--------------------------------------\nTo scout foreclosed properties for potential purchase, check out the following resources.\n*   Bank websites. Many bank websites provide lists of foreclosed properties for sale.\n*   The U.S. Department of Housing and Urban Development (HUD) provides listings of homes for sale by government agencies, including foreclosures and properties otherwise seized by law enforcement agencies.\n*   Foreclosure listings at online real estate listing services such as Zillow and RealtyTrac.\n*   The multiple listing service (MLS), typically available only to licensed real estate professionals, lists foreclosed properties along with typical home sales. Your agent or mortgage broker can help you tap this resource for properties in your area.\nDo I Need Good Credit to Buy a Foreclosed Home?\n-----------------------------------------------\nIf you plan to finance your foreclosure purchase, you'll need to qualify for a mortgage just as though you were buying from a homeowner. As with any home loan, the lender will likely want to see evidence that you can afford the monthly mortgage payments, and they'll probably run a credit check as well.\nYour credit scores will likely play a role in a lender's decision to issue you a loan and may also factor into the interest rate and fees they'll charge you. Whether you're financing a foreclosure or a more traditional home purchase, higher credit scores generally lead to better borrowing terms.\nBefore applying for foreclosure financing, it's always a good idea to review your credit report and check your credit scores to know where you stand. If you can wait and your credit score has room for improvement, focus on raising your credit score for a year or so before applying for a loan.\nForeclosed homes can be a great launching pad for real estate investment, or even a path to a more affordable home for you and your family. If you understand what you're getting into and how to size up foreclosure properties, you could get a terrific bargain. END
 TITLE: How to Buy A Foreclosed Home CONTENT: Resources for Finding Foreclosed Homes\n--------------------------------------\nTo scout foreclosed properties for potential purchase, check out the following resources.\n*   Bank websites. Many bank websites provide lists of foreclosed properties for sale.\n*   The U.S. Department of Housing and Urban Development (HUD) provides listings of homes for sale by government agencies, including foreclosures and properties otherwise seized by law enforcement agencies.\n*   Foreclosure listings at online real estate listing services such as Zillow and RealtyTrac.\n*   The multiple listing service (MLS), typically available only to licensed real estate professionals, lists foreclosed properties along with typical home sales. Your agent or mortgage broker can help you tap this resource for properties in your area. END
 TITLE: How to Buy A Foreclosed Home CONTENT: Do I Need Good Credit to Buy a Foreclosed Home?\n-----------------------------------------------\nIf you plan to finance your foreclosure purchase, you'll need to qualify for a mortgage just as though you were buying from a homeowner. As with any home loan, the lender will likely want to see evidence that you can afford the monthly mortgage payments, and they'll probably run a credit check as well.\nYour credit scores will likely play a role in a lender's decision to issue you a loan and may also factor into the interest rate and fees they'll charge you. Whether you're financing a foreclosure or a more traditional home purchase, higher credit scores generally lead to better borrowing terms.\nBefore applying for foreclosure financing, it's always a good idea to review your credit report and check your credit scores to know where you stand. If you can wait and your credit score has room for improvement, focus on raising your credit score for a year or so before applying for a loan.\nForeclosed homes can be a great launching pad for real estate investment, or even a path to a more affordable home for you and your family. If you understand what you're getting into and how to size up foreclosure properties, you could get a terrific bargain. END
 TITLE: What Is a Second Mortgage? CONTENT: Types of Second Mortgages\n-------------------------\nThere are two main types of second mortgages:\n*   **Home equity loan.** With a home equity loan, you borrow a lump sum you'll pay back in a series of equal monthly installment payments over a repayment period, such as 10, 15 or 20 years. This type of second mortgage is often used for a single big-ticket expense (a roof replacement or a major renovation) for which the cost is known and fixed, and can be fully covered by the loan amount.\n*   **Home Equity Line of Credit (HELOC).** A HELOC is a type of revolving credit, with usage and repayment terms similar to that of a credit card: The amount you borrow establishes a credit limit against which you can make purchases by writing checks or using a debit card issued by the lender. You must make a minimum payment each month, but otherwise you can repay as much or as little as you like. As you pay down your balance, your borrowing limit is restored. You are charged interest only on your outstanding balance. A HELOC often makes sense if you're working on a series of home improvements, need to make sizable upfront investments in labor and materials for each, and can pay down those costs as you go. END
 TITLE: What Is a Second Mortgage? CONTENT: Common Reasons for a Second Mortgage\n------------------------------------\nAccess to relatively large amounts of money makes second mortgages popular for covering major expenses. You can use funds from a second mortgage for anything you like, including:\n*   Consolidating and paying off existing debt, especially high interest loans and credit card balances\n*   Launching or investing in a small business (as a supplement or alternative to an SBA Loan)\n*   Medical debts\n*   College tuition and other expenses\n*   Purchasing a car, boat or recreational vehicle\nSecond mortgages are also often used as home improvement loans, to cover expenses for major repairs (a new roof or HVAC system, for instance), renovations (room additions, bathroom remodeling and the like), landscaping projects or even a down payment on a second home.\nOne advantage to using second mortgage funds to fix up your home is that under the 2017 tax reform law, the interest you pay on a second mortgage loan is deductible from your federal income tax, but only if the loan is used to \"buy, build or substantially improve\" your home.\nUsing second mortgage funds to improve a house also can be a good way to increase the home's resale value. Depending on the age of the property, the nature of the renovations and the strength of the local housing market, judicious improvements can more than pay for the amount of the loan upon sale of the house. END
 TITLE: What Is a Second Mortgage? CONTENT: How Do You Qualify for a Second Mortgage?\n-----------------------------------------\nTypically, to qualify for a second mortgage, you'll need around 20% equity in your home. The lender will arrange an appraisal, which you'll have to pay for, to determine the market value of the home.\nThe thoroughness of the required appraisal will vary by lender. A full appraisal, entailing a walk-through of the home, could cost $500 or more. But a growing number of lenders allow much cheaper exterior-only appraisals. Some lenders even allow \"desktop appraisals\" that use local housing data to calculate market value that may cost under $100 or even be provided free to applicants. END
 TITLE: What Is a Second Mortgage? CONTENT: When Does It Make Sense to Take Out a Second Mortgage?\n------------------------------------------------------\nThe ideal circumstance for taking out a second mortgage may be to finance home improvements that significantly enhance the value of your home. Whether you plan to sell your home soon or stay long term and take advantage of the improvements, you'll typically see a good return on your investment. Some home improvements yield bigger returns than others, however, and depending on the housing market, some may yield no return at all; for example, a built-in swimming pool is practically essential in some locales, but in other areas one may discourage buyers. It's your home, so improve it as you wish, but if enhancing resale value is your goal, it might be wise to consult a real estate professional to help prioritize your projects.\nA second mortgage may also make sense if you're overwhelmed with high interest debt, and a home equity loan will enable you to reduce your monthly payments (and interest costs) to a manageable level. Of course, this strategy will only work if you can avoid running up additional debt like the ones that got you in trouble to begin with.\nBecause home equity represents the largest portion of many families' wealth, a second mortgage may be the only option to cover large unexpected expenses, including medical emergencies or emergency home repairs. END
 TITLE: What Is a Second Mortgage? CONTENT: Why a Second Mortgage Might Be Risky\n------------------------------------\nWhile the borrowing terms on second mortgages are fairly reasonable, they can represent a significant monthly expense: Interest rates on home equity installment loans vary from market to market and lender to lender, but national rates currently range from just under 3% to 11%, and HELOC rates range from about 3.5% to 13%. Origination fees on home equity installment loans, which are negotiable and can often be rolled into monthly payments, range from 2% to 5% of the loan amount.\nThe biggest downside to a second mortgage is the possibility of losing your home in the event you can't make your payments. If you're concerned that you may be unable to juggle both mortgages, it would probably be wise to look into other financing options or, worst case, sell the home and trade for a more affordable housing option. END
 TITLE: What Is a Second Mortgage? CONTENT: Is a Good Credit Score Needed for a Second Mortgage?\n----------------------------------------------------\nAs with a conventional mortgage, your credit score plays a role in determining the interest rate and payment terms you'll get on a second mortgage.\nRequirements differ around the country, but lenders tend to look for a minimum FICO® Score☉ of about 620 from second mortgage applicants. All other factors being equal, the higher your credit score, the lower your interest rate is likely to be.\nLenders also consider your debt-to-income ratio (DTI)—the portion of your gross monthly income that goes toward debt payments. Most lenders prefer applicants with a DTI below 43%, though exceptions are possible (especially if you show that the loan will reduce your monthly DTI).\nIf you're thinking about getting a second mortgage for non-emergency purposes, it may be worth spending six to 12 months working on improving your credit score before you start shopping for a loan. These steps can help you get started, and can bring relatively quick improvements to your credit scores:\n*   Check your credit reports and credit scores so you know where you stand, and make sure the information in your credit reports is accurate. If you find any inaccuracies, you can dispute them with the credit reporting agencies (Experian, TransUnion and Equifax). Your credit report will show you where your credit may need improvement, such as late payments or a short credit history.\n*   Pay down debt. Paying off high credit card balances lowers your DTI and can also help improve your credit score. Your credit utilization rate—how much credit card debt you have in relation to your total available credit—is an important factor in your credit score. Get your credit utilization rate as low as possible (think single digits) to see the biggest improvement in your scores. Ideally, don't carry any debt from one month to the next.\n*   Don't apply for new credit. When you apply for a loan or credit card, the lender typically makes a hard inquiry on your credit report, which can cause your credit score to drop by a few points temporarily. Adding new debt can also increase your DTI. END
 TITLE: What Is a Second Mortgage? CONTENT: Bottom Line: It Depends\n-----------------------\nA second mortgage can be a powerful tool for accessing cash to meet your needs and accomplish your goals. Compared with an unsecured personal loan, a second mortgage may allow you to borrow a larger amount and get it at a lower interest rate—depending on the amount of equity you've accrued in your home.\nAs long as you are confident you can cover your payments, a home equity loan or HELOC can be a great vehicle for taking advantage of the wealth you've built up in your home. END
 TITLE: Layaway or Credit: Which Is Best? CONTENT: How Does Layaway Work?\n----------------------\nImagine you're in the market for a refrigerator to replace one that seems to be on its last legs. You find a great one for $1,000 at your favorite department store. Unfortunately, cash is tight and you either can't or don't want to use a credit card. Rather than give up, you may be able to buy it using layaway. Here's how it would work: After making a down payment of $100 plus a $5 service fee, you agree to pay the remaining $900 in four equal monthly installments of $225. After four months, the refrigerator is yours to take home.\nTerms may differ depending on the retailer, but that's generally how all layaway plans will go.\nLimitations or requirements on layaway can include:\n*   Some products may be excluded, such as gift cards, sale items and fine jewelry.\n*   The store \"holds\" the item for a specified length of time. Layaway plans can be 30 days on up to many months.\n*   A payment schedule is set. You may have to make weekly or monthly installment payments.\n*   There may be a minimum purchase price, such as $50 or $100.\n*   Fees may be imposed, which could be a nominal amount to set up the service, and for cancelation and restocking.\n*   Layaway items generally can be paid off early.\n*   Canceling a layaway may incur a fee. END
 TITLE: Layaway or Credit: Which Is Best? CONTENT: Can Layaway Impact Your Credit Score?\n-------------------------------------\nLayaway plans have zero impact on your credit scores. The store does not check your credit report to see if you qualify, so a hard inquiry won't be posted on your credit report, and a layaway agreement won't show up as positive payment history.\nAdditionally, layaway plans do not show up as any kind of debt on your credit report. Late payments won't hurt your credit scores, either. Since the amount won't show up on your credit report, your credit utilization ratio (the amount you owe compared with the amount you can charge) won't change. For these reasons, layaway plans have a neutral effect on your credit.\nOne downside to layaway is that your on-time payments won't improve your credit score. Since stores do not report your layaway payment history to the three major credit bureaus (Experian, TransUnion and Equifax), don't expect your credit score to change. END
 TITLE: Layaway or Credit: Which Is Best? CONTENT: How Is Layaway Different From a Credit Account?\n-----------------------------------------------\nA layaway plan and a credit card are similar only on the surface. Before you enter into either arrangement, understand the important distinctions between the two.\nFor both layaway and credit cards, you'll be paying over time and sending at least a minimum payment amount. If you fail to meet the terms of the agreement, at least some penalties and fees will be assessed.\nWith a credit card, though, your purchase will go through immediately because you're using a lender's money—not yours—to pay. Interest is added to the balance if you carry it month to month. Credit cards may be used continually for additional purchases until the account is closed.\nWith layaway, there are no interest charges. You are drawing from your own funds to pay, but you must complete every agreed-upon payment before the item on layaway is yours to keep. A layaway agreement covers one item; any additional layaway agreements must be made independently. END
 TITLE: Layaway or Credit: Which Is Best? CONTENT: Should You Use a Layaway Plan?\n------------------------------\nFor an item you need right away, layaway is inconvenient; but if you can wait, it's an alternative to using credit. Layaway can be smart for budgeting purposes. You can parcel out your payments and integrate them into your spending plan. Layaway also prevents you from opening a credit account that has the potential to balloon out of control.\nSome buyers may find it more beneficial to use a credit card. Using a credit card to make a major purchase helps you build a positive credit history—which will positively factor into your credit scores. Depending on the card, you may even net some cash back or points that go toward rewards.\nIf you'd like to use credit, but don't have a credit card or an established credit history, consider opening a secured credit card. With a secured card, you set money aside with the issuer as a deposit, and you'll have access to a credit line that matches that amount.\nIt's great to have options. A layaway plan can be great when you don't need to have something urgently. Credit is a good alternative when you need something now and will pay it off quickly. If you're concerned that you may not qualify for a credit card or loan because of past problems or mistakes, check your Experian credit report. It's free, and it will give you a look at what in your credit is working for you and what may be working against you. END
 TITLE: What Is a Home Equity Line of Credit (HELOC)? CONTENT: HELOC lenders let you borrow between 60% and 85% of your home's current assessed value, minus your remaining mortgage balance. For example, suppose your house is worth $350,000 and you still owe $110,000 on the mortgage. You have $240,000 in home equity, so you might be able to borrow as much as $204,000, depending on your income, your creditworthiness and other factors.\nDon't confuse a HELOC with a home equity loan. Home equity loans are installment loans, meaning you repay them over a set number of years at a fixed monthly payment and interest rate. A HELOC is revolving credit, like a credit card, so you can choose how much of the credit line to tap into. HELOCs generally have variable interest rates.\nTypically, you can draw on the line of credit for 10 years (called the \"draw period\"). During that time, you make interest-only payments on the amount you've borrowed, although some lenders will let you make payments on the loan principal too. When the draw period ends, the HELOC closes; at that point, you have to either repay the balance (generally over a 20-year period) or refinance the loan. END
 TITLE: What Is a Home Equity Line of Credit (HELOC)? CONTENT: What Can You Use a HELOC For?\n-----------------------------\nThe proceeds of a HELOC can be used for any purpose you choose. However, the most common reasons homeowners take out HELOCs include:\n*   **Financing home improvements**: Many people use HELOCs to pay for home upgrades that will add to the value of the home. HELOCs can be a good way to finance home remodeling because they let you borrow only as much as you need for each stage of the project. Depending on how much the improvements add to your home's value, you might even be able to deduct some or all of the interest on the HELOC at tax time if you itemize deductions. Learn more about home improvement loan options.\n*   **Accessing lower interest rates on credit**: If you are facing hefty medical bills, credit card bills or other sizable debt, you could use a lower interest HELOC to get the money you need to pay off higher interest debt. If you choose this option, however, it's important to make sure you don't get back in debt again. Otherwise, you could be putting your home at risk if you can't pay off the HELOC.\n*   **Paying education costs**: Since education is generally considered a good investment, some people use HELOCs to pay college tuition for their children or continuing education costs for themselves.\n*   **Starting a business**: Getting a loan to start a business can be difficult, so many startup entrepreneurs use a HELOC to finance their launch. However, it's important to weigh the potential consequences: If your business fails, you could lose both your business and your home. END
 TITLE: What Is a Home Equity Line of Credit (HELOC)? CONTENT: What to Consider Before Getting a HELOC\n---------------------------------------\nBefore getting a HELOC, you should carefully consider the advantages and disadvantages.\n**_Advantages of a HELOC_**\n*   **Low interest rates**: Because they're secured by your home as collateral, HELOCs have lower interest rates than unsecured loans or credit cards.\n*   **Large amounts**: Depending on your amount of home equity, a HELOC can allow you to borrow large sums of money. Getting a credit card with a $150,000-plus credit limit might be a snap for Kim Kardashian, but for most of us, a HELOC is an easier way to access that much credit.\n*   **Flexibility**: Unlike a loan, which requires borrowing the entire amount in a lump sum, a HELOC lets you use only as much credit as you need. If you get a $100,000 HELOC for a home remodeling project and it only ends up costing $75,000, you never have to use that extra $25,000 (which means you never have to repay it). If you had taken out a loan for that amount, you'd still have to pay back $25,000 plus interest.\n**_Drawbacks of a HELOC_**\n*   **Reduces your equity**: Building up equity in your home takes a long time. A HELOC can wipe out a substantial portion of your equity or in some cases, put you right back where you started. This can be a problem if home values in your area tend to fluctuate or if they drop unexpectedly, as happened during the 2008 recession. (In fact, if your home value declines substantially, your lender may freeze your HELOC.)\n*   **Sudden increase in payments**: When the draw period ends, your payments will increase substantially because you have to pay off the loan principal. This can be a big blow to your budget. If you're not prepared for this expense or if your financial situation has worsened in the 10 years since you took out the loan, you could have difficulty making the payments, and you could lose your home.\n*   **Risking your home**: The biggest disadvantage of a HELOC? You're putting your home on the line as collateral and could lose it if you can't repay the money you've borrowed. END
 TITLE: What Is a Home Equity Line of Credit (HELOC)? CONTENT: How to Qualify for a HELOC\n--------------------------\nWhen you apply for a HELOC, lenders will conduct a property appraisal to determine the value of your home so they can establish how much equity you have. They will also perform a title search and conduct a credit check. Having substantial equity in your home isn't all it takes to qualify, however. HELOC lenders typically want you to have a credit score of at least 680; 700 is is better, and some may require a score of 720 or more. Your credit score and the amount of equity you have in your home are key factors in determining your loan terms. If your credit score is on the low end, having a lot of equity can balance it out. Learn more about what credit score you need to get a HELOC.\nTo assess your ability to repay the line of credit, lenders will also consider your debt-to-income ratio, or DTI (that is, the percentage of your total income that goes to pay outstanding debt) and how long you've been employed. They'll also be on the lookout for any past financial problems, such as bankruptcies or foreclosures, in your credit history.\nBefore applying for a HELOC, it's a good idea to get a free credit report and check your credit score to see where you stand. If necessary, take steps to improve your credit score before you apply; this can boost your chances of qualifying for a HELOC. END
 TITLE: What Is a Home Equity Line of Credit (HELOC)? CONTENT: How a HELOC Can Affect Your Credit Score\n----------------------------------------\nAs with any type of credit, the way you use your HELOC can affect your credit score either positively or negatively. For example, using the proceeds of a HELOC to pay off high interest credit card debt can help to improve your credit score (as long as you don't start running up your credit card balance again). You can also help to boost your credit score by making on-time payments on the HELOC. END
 TITLE: What Is a Home Equity Line of Credit (HELOC)? CONTENT: What Are the Alternatives to a HELOC?\n-------------------------------------\nA HELOC is not your only option when you need to remodel your home or pay for other large expenses. Other alternatives to consider include:\n*   **Personal loans**: A personal loan doesn't require collateral, so unlike with a HELOC or home equity loan, you don't have to put your home on the line. While that's good news for your home, it also means personal loans have higher interest rates than home equity loans or HELOCs. As with any type of loan, you will receive the entire loan amount in a lump sum and make fixed monthly payments. Personal loans have shorter repayment periods than home equity loans, so they work best if you need to borrow a smaller amount of money. Find out more about the difference between a personal loan and line of credit.\n*   **Home equity loans**: Like a HELOC, a home equity loan (sometimes called a second mortgage) allows you to borrow against the equity in your home. While a HELOC is revolving credit, a home equity loan is an installment loan. You'll receive the entire amount of the loan in a lump sum and make fixed monthly payments over the life of the loan, which can be up to 30 years (just like a first mortgage). If you know exactly how much money you need, a home equity loan can be a better option than a HELOC because it offers a predictable repayment schedule and a fixed interest rate.\n*   **Cash-out refinancing**: If you have sufficient equity in your home, a cash-out refinance is another loan alternative that offers fixed interest rates, set monthly payments and a long loan term. A cash-out refi replaces your existing mortgage with a new, larger mortgage. You use the loan proceeds to pay off your original mortgage; then you receive whatever is left over as a lump sum in cash, which can be used for any purpose you choose.\nHomeowners with lower credit scores may find it easier to qualify for cash-out refinancing than for HELOCs or home equity loans. However, keep in mind that you're now on the hook for a whole new mortgage—not just a small loan. The new mortgage may have higher interest rates than your original mortgage or require you to have private mortgage insurance (PMI), which adds to your monthly costs of homeownership. In addition, you'll have to pay closing costs on the entire amount of the mortgage, making closing costs more expensive than for a HELOC or home equity loan. Carefully consider whether a cash-out refinancing will cost you more than it will benefit you in the long run. Read more about the pros and cons of cash-out refinancing. END
 TITLE: What Is a Home Equity Line of Credit (HELOC)? CONTENT: Understand Your Options\n-----------------------\nHaving equity in your home gives you a lot of options for borrowing money or obtaining a line of credit. However, using your home as collateral can put your biggest asset at risk. Before you apply for a HELOC or any other financing secured by your home, carefully consider all your options and check your credit score to see which options are most realistic for you. By assessing the costs, risks and benefits, you'll find the option that works best for you. END
 TITLE: What Is Private Mortgage Insurance? CONTENT: How Does Private Mortgage Insurance Work?\n-----------------------------------------\nLenders who issue conventional mortgages (home loans that aren't government-backed) typically want borrowers to put up 20% of the cost of the home as a cash down payment. In the world of financial institutions, this is expressed in an inverse way: Lenders prefer to issue loans for no more than 80% of the market value of the home. The percentage of the home's value represented by the amount of the loan is called loan-to-value (LTV) ratio:\nLTV =\nMortgage Loan Amount\n* * *\nAppraised Home Value\nOn a $300,000 home, a borrower putting down 20% ($60,000) would require a loan of $240,000, yielding an LTV ratio of 80%. If a borrower put 15% down on the same home ($45,000), they would require a $255,000 loan—an LTV ratio of 85%.\nLenders seek 80% or lower LTV ratios as a precaution in case the borrower fails to repay the loan. Each mortgage loan is secured by the home itself, but if a borrower fails to pay and the lender is forced to take the home through foreclosure, there can be steep costs associated with re-selling it. Lenders can use down payments to help cover those expenses.\nComing up with a 20% down payment is difficult for many borrowers, especially those trying to enter the housing market for the first time. In light of this, lenders devised private mortgage insurance (PMI) as a way to issue mortgages with LTV ratios greater than 80%. When lenders issue loans with LTV ratios greater than 80%, they require you to purchase mortgage insurance to cover the difference between the amount you put down at closing and a 20% down payment.\nIn our hypothetical $300,000 home, if you made a 10% down payment (LTV = 90%), you'd need PMI coverage for $30,000, the amount of additional down payment you'd need for an LTV ratio of 80%.\nWhen PMI is required, the lender secures a policy through one of the six companies currently offering mortgage insurance in the U.S. Borrowers have no vote in the choice of PMI provider, so there's no opportunity to compare pricing. END
 TITLE: What Is Private Mortgage Insurance? CONTENT: How Much Does PMI Cost?\n-----------------------\nThe cost of PMI depends on the provider, the size and type of loan and, potentially, your debt-to-income (DTI) ratio. Premiums increase with the amount of coverage required, and PMI on adjustable-rate mortgages is more expensive than on fixed-rate mortgages.\nPMI can cost as little as one-half point (0.5% of the total loan amount) to more than two points (2% of the total loan amount) per year. PMI payments can be structured in one of the following ways:\n*   **Monthly**: The most common PMI payment arrangement divides your annual PMI premium into 12 monthly payments, which are added to your monthly mortgage bill.\n*   **Upfront**: You pay for PMI in a lump sum as part of your closing costs. This lowers your monthly payments, but if you sell the home within a relatively short time, you could lose money on the deal, since the lump-sum payment is non-refundable.\n*   **Split premiums**: You purchase a portion of the PMI policy upfront and cover the rest in payments added to your monthly mortgage statements. This is fairly uncommon, but you can request it if you'd prefer to lower your monthly payments in exchange for higher closing costs.\n*   **Lender-paid PMI**: The lender covers the PMI premium, but shifts the cost to you in the form of higher interest rates. This is the least desirable form of PMI for the borrower, as there is no way to cancel it (or get rid of its cost) over the life of the loan. Lenders often insist on this arrangement when borrowers have poor credit. END
 TITLE: What Is Private Mortgage Insurance? CONTENT: What to Consider Before Choosing a Loan With PMI\n------------------------------------------------\nPrivate mortgage insurance can be a great means of getting into a home without having to scrape together a full 20% down payment. If you're ready to own a home, you don't see a 20% down payment as a reality anytime in the near future, and you're willing to pay the cost of PMI to get into a home, it could be a good choice for you. But it's not an expense everyone chooses to take on.\nFirst, it's an extra cost that adds to the price of owning a home. If you're already worried about ongoing loan payments and other homeownership costs, PMI could increase that stress.\nIf you want to avoid PMI, you can take the following actions:\n*   Seek government-insured loans issued by the Federal Housing Administration (FHA) or U.S. Department of Veteran's Affairs (VA). Each has significant borrowing restrictions, but if you qualify, you can avoid PMI.\n*   Save up until you have 20% of the purchase price to put down on a loan, recognizing that in some markets, housing prices will be rising as you save. So in another year (or another five years), the cost of homes like the one you seek will be proportionally greater, and so will the sum that constitutes 20% of their value.\n*   Use savings you already have as a down payment on a smaller loan. If you've saved enough, consider purchasing an older or smaller home in your area, looking around in other markets where housing costs are lower, or perhaps investigating condominiums or co-op apartment units. Getting into less home than you want right now might require some compromises, but it could also set the stage for trading up to a bigger property within the next five to 10 years. END
 TITLE: What Is Private Mortgage Insurance? CONTENT: How to Get Rid of PMI\n---------------------\nMany borrowers are grateful when PMI helps them get a mortgage with an LTV ratio greater than 80%, but most are even more thankful when they can cancel their PMI coverage. Many loans call for automatic PMI removal after the date at which your monthly payments are calculated to get you past a 78% LTV ratio (in other words, when you've paid 22% of the home's \"principal value\"). But you can request PMI removal earlier if you can show your equity in the home equals or exceeds 20% of what you paid for the property (its \"original value\").\nHow long it takes to get to an 80% LTV ratio depends on several factors:\n*   **The size of your down payment**: The closer your original down payment was to 20%, the sooner you'll get to 80% LTV. For example, with all other factors being equal, for our hypothetical $300,000 home:\nIf you put down 10% on a 30-year loan at 4.5% interest, it would take just over six years to reach 20% equity. With a 5% down payment, it would take more than eight years.\n*   **The size of your monthly payments**: You can speed up accumulation of equity (and your arrival at 20% LTV) by \"overpaying\" your mortgage each month. In addition to enabling you to end PMI payments sooner, this practice can save you interest costs over the life of the loan. Prepaying your mortgage comes with some tradeoffs, however, so consider this option carefully before you proceed.\n*   **Changes in appraised value**: Your home's appraised value can change with market conditions. If you buy in an area with rising home prices, market appreciation on your property could help you get you to 20% equity even sooner. By contrast, declining neighborhood property values could prolong the time needed to reach 80% LTV.\nBefore PMI can be removed, you typically have to pay for a new appraisal (by an appraiser selected by the lender). Lenders require this to cover them in case the house's value has dropped below its original value. Appraisals typically cost a few hundred dollars, but prices can run up over $1,000 for very large homes or properties with unique or unusual features or amenities.\nThe new appraisal determines the value of the home that's used when calculating your LTV ratio. If you've reached 80%, you can eliminate your PMI. If you're not at 80%, you can try again anytime, but you may have to pay for another appraisal. END
 TITLE: What Is Private Mortgage Insurance? CONTENT: Can a Good Credit Score Help Me Avoid PMI?\n------------------------------------------\nIf you have exceptional credit, you could qualify for an 80\/20 mortgage, which avoids PMI and gets you into a home for just the closing costs. You do this by taking out a mortgage for 80% of the property value, and a second loan for the 20% down payment. Both the 80% loan and the 20% loan are secured against the home, so defaulting on either one could result in foreclosure.\nLenders are highly selective about issuing 80\/20 loans. In addition to a great credit history, you may be required to show a strong record of regular employment, meet minimum requirements for savings and other assets, and demonstrate that your outstanding debts total less than 45% of your income. These requirements put 80\/20 loans out of reach for many borrowers, but if you qualify, it's an option worth investigating.\nMany homebuyers see private mortgage insurance, and the hundreds of dollars per month it typically costs, as little more than a necessary evil. But by allowing homebuyers to purchase a home with a down payment of less than 20%, PMI lifts a major roadblock for many would-be homebuyers. It's a tool worth understanding, and it might help you get into the home of your dreams. END
 TITLE: Homeowner Expenses Beyond Your Mortgage CONTENT: Property Taxes\n--------------\nThe value of your home as well as your community services will dictate how much you pay in property taxes. While you may pay property taxes directly, they're often included in your monthly mortgage payment. If you're not sure what your local property tax rate is, check with your county assessor's office.\nMake sure your budget can accommodate increases in property taxes, as the amount may go up if your home increases in value over time. Look at comparable homes in your area to find out if tax increases are common. END
 TITLE: Homeowner Expenses Beyond Your Mortgage CONTENT: Homeowners Insurance\n--------------------\nHomeowners insurance will protect your home in the event of a fire, theft or another costly disaster. This may also be included in your monthly mortgage payment along with your property taxes. If you buy an older home or a home in a flood, earthquake or volcano zone, you may pay extra for homeowners insurance. Some policies may not cover specific disasters common to your area, such as earthquakes, so you may want to supplement your primary policy with one that covers these occurrences. Costs for homeowners insurance depend on your location, but you'll typically pay around $35 per month for each $100,000 in home value. END
 TITLE: Homeowner Expenses Beyond Your Mortgage CONTENT: Private Mortgage Insurance\n--------------------------\nIf you put down less than a 20% downpayment on your house, you may have to pay for private mortgage insurance, or PMI. PMI protects your lender if you default on your mortgage and your home goes into foreclosure. If you have a low credit score or have gone through a bankruptcy or foreclosure prior to your new mortgage, you'll likely have to pay PMI even if your down payment exceeds 20%.\nPMI will typically cost you anywhere between 0.5% and 1% of your entire loan amount, every year. There are a few ways to pay your PMI, though the most common is to pay for it as part of your monthly mortgage payment. END
 TITLE: Homeowner Expenses Beyond Your Mortgage CONTENT: Homeowners Association Fees\n---------------------------\nDepending on where your property is, you may need to pay homeowners association, or HOA, fees. These fees are levied as monthly dues and are used to pay for community amenities such as swimming pools, gyms and guarded gates. They may also help pay for things like landscaping and snow removal. The more community amenities your home comes with, the more you can expect to pay in HOA fees. END
 TITLE: Homeowner Expenses Beyond Your Mortgage CONTENT: Utilities\n---------\nThe costs of gas, electricity and water can add up quickly. That's why it's a good idea to ask your sellers for copies of previous utility bills so you can get an idea of what they paid before you commit to a home. Keep in mind that these amounts will vary based on personal use, such as how warm or cool you keep your house or how long you shower. END
 TITLE: Homeowner Expenses Beyond Your Mortgage CONTENT: Appliances\n----------\nWhile some appliances like a dishwasher or oven may be included in your sale price, you may be responsible for buying portable appliances such as refrigerators, washers and dryers. If you're buying an older home and some included appliances are on their last leg, you may want to replace them as well. END
 TITLE: Homeowner Expenses Beyond Your Mortgage CONTENT: Furniture and Home Furnishings\n------------------------------\nIf you're a first-time homebuyer or moving from somewhere smaller, you may need to fill your home with furniture. The costs of bedroom furniture sets, kitchen and dining room tables, couches, recliners and other furniture can add up quickly if you're not prepared for them.\nIn addition to furniture, you may also want to buy home furnishings like curtains, bedding and rugs to decorate your home and make it feel like your own unique space. While these costs are not typically ongoing, they're an important part of getting established in your new home and so should be worked into your move-in budget. END
 TITLE: Homeowner Expenses Beyond Your Mortgage CONTENT: Repairs\n-------\nUnfortunately, repair costs are difficult to predict and plan for. While some repair costs that come from natural disasters like floods and earthquakes are typically covered by homeowners insurance, you may still have to meet the deductible and pay for the excess expenses out of pocket. Some of the most common and expensive home repairs include roof repairs, septic tank replacements and basement waterproofing. That's why it's a good idea to maintain an emergency fund to protect you in case of unexpected repairs. END
 TITLE: Homeowner Expenses Beyond Your Mortgage CONTENT: Maintenance\n-----------\nMaintaining your yard, cleaning your rain gutters and servicing your HVAC systems are all examples of maintenance costs you'll face as a homeowner. While you can maintain your home on your own, doing so requires some time and skill as well as material costs. If you hire professionals for maintenance work, understand that labor often comes with a high price tag. END
 TITLE: Homeowner Expenses Beyond Your Mortgage CONTENT: Remodeling\n----------\nUnless you build, the home you buy probably won't be perfect and contain every feature you want. That's where remodeling come in. If you want a new kitchen or master bathroom, expect to pay big money, even if you do it yourself. The good news is that there are loans you can take out to help you pay for remodeling projects if you don't have the cash on hand.\nWhen you're shopping for a home, look past the monthly mortgage payment you may see online and keep all of these additional costs in mind. By understanding the common costs of homeownership beyond the mortgage, you'll be able to choose a home that aligns well with your budget and lifestyle needs. END
 TITLE: How to Combat Debt Shame CONTENT: 1\\. Review Your Finances\n------------------------\nTo reduce your guilt and shame over your debt and, just as important, start paying it off, you need a plan. Start by making a list of all your debts, including their interest rates, to know where you stand. For a complete list of all your accounts, get your free credit report. It displays what creditors report to the credit bureaus (Experian, TransUnion and Equifax), as well as all of your accounts with balances and the necessary contact information for each. Then, figure out what your minimum monthly payments are to stay current with your debt. END
 TITLE: How to Combat Debt Shame CONTENT: 2\\. Come Up With a Plan\n-----------------------\nOnce you have listed out all your debt, it's time to take steps to minimize it. Create a monthly budget that includes your rent or mortgage, utilities, phone bill, food, gas and other expenses. Compare this with your monthly income to get a better idea of how much you will have left over each month to incrementally pay off your debt. Other steps that will help include:\n*   **Paying your bills on time each month.** Sign up for automatic payments or payment reminders so you don't forget to pay your bills. This is the best thing you can do to improve your credit score, as payment history is the biggest factor in determining your score.\n*   **Supplementing your current income.** Whether that means asking for a raise, taking on a second job, or utilizing the money your grandparents gave you for your birthday, look for inventive ways to enhance your earnings.\n*   **Finding ways to save money.** Cut back on the non-essentials. While going out to eat less and forgoing your annual vacation might not sound fun, every dollar you can put toward your debt counts. Prioritize your finances first and celebrate paying off your debt later. END
 TITLE: How to Combat Debt Shame CONTENT: 3\\. Get Help if You Need It\n---------------------------\nSometimes, asking for outside help is the best way to alleviate your stress about money. Talk to financial experts or credit counselors, even people you know personally and trust, for advice about your situation to become as educated as you can about the resources available to you.\nCredit counseling agencies can provide you with personalized strategies to manage and lessen your debt, and your friends and family can help give you the necessary support, emotional or otherwise, to feel less alone. If you are having trouble opening up to your partner or spouse about your finances, try following this step-by-step guide on how to do so without hurting your relationship.\nBeing ashamed of your debt is understandable and quite common. While daunting, it's important to be able to talk honestly about any issues or worries you may have about your finances to get the assistance you need to move forward. END
 TITLE: How to Combat Debt Shame CONTENT: 4\\. Find the Best Way to Deal With Your Debt\n--------------------------------------------\nAfter budgeting and discussing possible options, you may still find yourself confused or with fewer funds than you need each month to effectively reduce your debt. If that happens, consider these strategies:\n*   **Debt consolidation.** A debt consolidation loan or balance transfer credit card enables you to fuse your higher interest rates into one lower interest debt, decreasing the total amount of interest you will pay overall. Lower interest rates put more money in your pocket, allowing you to put more money toward paying off your debt.\n*   **Negotiating with your lenders.** If you have a good credit score and a positive payment history, credit card companies may agree to offer you a lower interest rate, eliminate late fees or reduce your minimum monthly payment. By communicating your needs and advocating for yourself, lenders may be more likely to help you—but you won't know if you don't ask.\n*   **Debt management.** Noted above, nonprofit credit counseling agencies can help you come up with a plan for attacking your debt. They may suggest a debt management plan, in which your credit counselor will negotiate with your creditors on your behalf to try to reduce interest rates, fees or even the amount you owe. Once the plan is in place, you'll make payments to the credit counselor, who will in turn pay your creditors.\n*   **Debt settlement.** Third-party companies may promise to confer with your creditors on your behalf to curtail your payments—for a fee. Generally, debt settlement firms negotiate to pay your lenders a lump sum that is less than the total you owe. While they do so, which can take months or longer, they'll require you to stop paying your debt. When late payments accumulate and collection agencies start to call, your credit will suffer serious damage. In addition, anytime you pay less than the entirety of your debt, your credit report will show that the account has been settled for less than the full balance owed. While these companies may be able to help in some situations, the potential hit to your credit should make them a last resort. END
 TITLE: How to Combat Debt Shame CONTENT: 5\\. Get Empowered\n-----------------\nWhen you take an active interest in understanding your finances and the ways in which you are personally affected by them, you become your most powerful resource. Remember, finding your way back to good financial standing is a process that doesn't happen overnight. By using the tips outlined above to get your debt under control, you will not only remove the reason you felt debt-shamed in the first place, but you will also feel more confident when handling money, be more likely to maintain good spending habits, and be inspired to reach your financial goals.\nDebt shame can feel overwhelming, but only if you let it. END
 TITLE: What Is ESG Investing? CONTENT: Socially responsible investing is an investment strategy that considers an investor's moral values as well as a company's potential financial returns, and typically excludes investments that don't sync with both. ESG investing is more focused, specifically zeroing in on the environment, social issues and corporate governance. Together, these three factors are considered to determine the potential positive impact of a given investment. The idea is to invest in companies that stand out in one or more of these areas.\nSome experts argue that companies that excel in ESG are better positioned for growth because they're actively addressing areas of concern for both consumers and employees. When a company prioritizes things like fair working conditions, diversity and sustainability, for instance, it's demonstrating a commitment to its own workers _and_ the greater community. This, in turn, could make them especially attractive to conscious investors. END
 TITLE: What Is ESG Investing? CONTENT: Different Types of ESG Investing\n--------------------------------\nBefore deciding if a company deserves a spot in their portfolios, conscious investors tend to evaluate the following ESG factors:\n*   **Environmental sustainability**: This is all about the company's environmental footprint. Does it have any renewable energy programs in place? Waste production, energy consumption and the company's overall carbon footprint can all play a role for investors who are concerned about the climate.\n*   **Social consciousness**: How is the company doing in terms of social responsibility? If it has a history of health and safety issues or human rights violations, for example, some may feel hesitant to invest. Conversely, companies that are dedicated to ethical manufacturing and helping to improve local communities may stand out as good investment choices.\n*   **Corporate governance**: Many investors feel pulled toward companies that have robust diversity policies in place and prioritize gender and racial equality. Companies that have a history of sexual harassment or discrimination, on the other hand, may be less appealing. END
 TITLE: What Is ESG Investing? CONTENT: How to Mix ESG Investments Into Your Portfolio\n----------------------------------------------\nIf you already have a relationship with a financial advisor, opening up a conversation about ESG investing is a great entry point as they can likely guide you in the right direction. Alternatively, you can take a do-it-yourself approach and open an investment account with a brokerage if you don't already have an investment portfolio. Brokerages such as Merrill, Charles Schwab, Fidelity and others provide information and options for investments in this area. Here are a few types of investments to consider:\n*   **ESG mutual funds**: A mutual fund is a basket of investments that is professionally managed. It can include different types of securities, such as stocks and bonds. Instead of choosing an individual stock, the investor owns small shares in a variety of assets, which helps diversify their portfolio. An ESG mutual fund contains securities that meet or exceed generally accepted ESG criteria. Some brokerage firms offer ESG mutual funds linked to a market index like the S&P 500 or Dow Jones Industrial Average.\n*   **ESG exchange-traded funds (ETFs)**: Like mutual funds, ETFs are made up of groups of securities and help provide diversification. They resemble stocks in that they're traded throughout the day. Their investments are usually passively managed and tied to a market index. Similar to ESG mutual funds, ESG ETFs are made up of socially responsible companies.\n*   **Individual stocks**: There may be a specific company you're excited about investing in because its values align with yours. If it's a publicly traded company, you can purchase shares of stock. The main objective is to buy stocks when the price is low and then sell them when the price goes up. Investing in individual stocks involves significant risk, so be sure to do your research before plunking down a lot of cash for a single stock.\nNo matter which route you take, investment research companies like Morningstar lean on ESG data and sustainability reporting to provide company ESG ratings you can evaluate for yourself. This lets you see just how well the companies you're interested in are performing with regard to ESG values as well as financial returns. Of course, just like traditional investing, ESG investing isn't without risk. Investment returns are never guaranteed, and market volatility comes with the territory. Diversifying your investment portfolio can provide some balance and help reduce risk. END
 TITLE: What Is ESG Investing? CONTENT: Is Now the Right Time to Invest?\n--------------------------------\nInvesting can be a great way to build your nest egg over the long term. If you have an employer-sponsored retirement account, such as a 401(k), you're already in the game. Contributing to this type of account sooner rather than later is the best way to take advantage of compound interest and grow your funds over time—especially if your employer offers a match.\nBefore you open an additional investment account, take a moment to evaluate your financial big picture.\n*   **Are you paying down high-interest debt?** The S&P 500 produced a return of 13.6% annually between 2010 and 2020, according to data from Goldman Sachs. While this isn't necessarily an indication of future market performance (and doesn't account for inflation), it's still worth your attention. If the average interest rate of your debt is higher than that number, it might make more sense to prioritize paying off debt over investing.\n*   **Do you have an emergency fund?** If not, you could end up accumulating credit card debt to see you through your next financial emergency. Before investing, it's best to have an emergency fund in place. Experts recommend socking away three to six months' worth of expenses as a safety net.\nThe Bottom Line\n---------------\nESG investing can be a great way to make a positive impact with your investment portfolio. It isn't all that different from traditional investing, except that you're supporting conscious companies while potentially growing your wealth over the long term. Investing is just one part of an overarching financial plan. Building strong credit is equally important. Take the first step by checking your credit score for free with Experian. END
 TITLE: How Couples Can Overcome Financial Incompatibility CONTENT: How Financial Incompatibility Can Cause Problems\n------------------------------------------------\nPartnering up with someone who isn't exactly like you can be a great thing. They may balance out your personality and help you to grow and evolve as a person. When it comes to your financial life, however, differences can create real friction in a relationship.\nA super frugal partner might insist on extreme saving habits that the other person finds unlivable. On the other hand, if one partner is a wild spender, it could cause you to fall behind on your household bills and result in consequences that affect both of you.\nMarriage doesn't combine your credit reports or directly affect your credit scores, but your credit should be a consideration when making financial decisions as a couple. Whether you're buying a house or opening a new auto loan or joint credit card, your individual credit histories will come into play, and your credit can be affected by how you manage accounts you choose to open together.\nEven if just one partner has a high debt load or history of late payments or delinquent accounts, it may cause you both to get stuck with a higher interest rate on joint accounts—or be declined altogether. Couples who open new credit accounts together will find that payment history and credit usage will reflect on both partners' credit reports (for better or worse). Having different spending personalities can also make it that much harder to reach your individual and shared savings goals. END
 TITLE: How Couples Can Overcome Financial Incompatibility CONTENT: How to Get on the Same Financial Page\n-------------------------------------\nOvercoming financial incompatibility begins with identifying mindsets and spending habits that are causing relationship stress. Just remember that it isn't about pointing fingers. Make it known that you want to move forward together and strengthen your relationship. The following action steps can help you do just that. END
 TITLE: How Couples Can Overcome Financial Incompatibility CONTENT: Managing a Financially Healthy Relationship\n-------------------------------------------\nAt the end of the day, it's about managing your financial health as a team. This goes hand in hand with staying on top of your credit. Opting for free credit monitoring with Experian can help the two of you spot red flags that could threaten your credit scores. Consider it an extra resource to keep in your financial toolbox. END
 TITLE: What’s the Difference Between an HSA and an FSA? CONTENT: What Is a Health Savings Account?\n---------------------------------\nYou can use an HSA to pay for qualified medical expenses that are excluded by your health insurance plan, like copayments, deductibles and coinsurance. The list of what you can purchase with HSA funds is wide-reaching and includes birth control, first-aid supplies and many over-the-counter medications. An HSA's tax benefits can also help save you money.\n*   Your HSA contributions are tax-deductible.\n*   Withdrawals made for qualified expenses are tax-free.\n*   HSAs can be structured as investment accounts that allow for tax-free growth.\nOnce you turn 65, you can use HSA funds for anything you like without being penalized. (Prior to this age, you'll get hit with a 20% penalty if you use it for non-qualified expenses.) However, you'll still be taxed on these withdrawals.\nHSAs are often available as an employee benefit. Your employer might even contribute to your account. You can also open one independently through an authorized credit union, bank or other organization that manages individual retirement accounts (IRAs). HSAs usually come attached to a debit card for easy use.\nTo qualify, you can't be enrolled in Medicare or have anyone else claim you as a dependent. Other eligibility requirements include:\n*   **You must have a high-deductible health plan.** For 2021, a high-deductible health plan has a minimum deductible of $1,400 for individuals; $2,800 for families.\n*   **You can't have additional health coverage.** Special coverages such as long-term care, dental and disability are allowed. END
 TITLE: What’s the Difference Between an HSA and an FSA? CONTENT: What Is a Flexible Spending Account (FSA)?\n------------------------------------------\nOnly available through employers that offer them, a flexible spending account is another tax-friendly way to cover certain medical expenses. FSAs extend beyond health care—some employers offer dependent care FSAs to help parents and caregivers reduce child care and elder care costs. Meanwhile, limited-purpose FSAs are geared toward vision and dental care expenses.\nSome FSAs come with a debit card. Others require you to pay upfront, then get reimbursed afterwards. Your company may also contribute to your FSA as an employee benefit.\nNow for the rub—FSA funds usually expire at the end of each plan year. Some employers offer a grace period (usually up to two and a half extra months) to use any remaining funds. Others may let you roll up to $550 into the new plan year. In this way, overfunding your FSA could come back to bite you. However, recent legislation gave employers the option of letting FSA participants roll over 100% of their unused funds from 2020 to 2021, and from 2021 to 2022. END
 TITLE: What’s the Difference Between an HSA and an FSA? CONTENT: Key Differences Between an HSA and an FSA\n-----------------------------------------\nHSAs and FSAs are similar concepts, but there are distinct differences between the two. From varied annual contribution limits to the ability to roll over funds, you'll need to learn the differences when deciding whether an HSA or FSA may be right for you. END
 TITLE: What’s the Difference Between an HSA and an FSA? CONTENT: The average non-elderly family in the U.S. spends 11% of their income on health care expenses, according to the Kaiser Family Foundation. HSAs and health FSAs are great ways to save, though you generally can't contribute to both during the same plan year.\nThink about your average annual health care expenses, like your deductible, medications and doctor's visits. Other factors to consider include:\n*   **Flexibility**: If you meet the qualifying criteria, you can keep an HSA and continue contributing to it as you move through your career, regardless of who your employer is.\n*   **Your retirement plan**: Since an HSA can double as an investment account, it could serve as a nice addition to your nest egg.\n*   **Your health insurance plan**: While HSAs are limited to high-deductible health plans, FSAs have no such restriction. END
 TITLE: 2021 Tax Deadlines You Need to Know CONTENT: January 15, 2021\n----------------\n### Final Estimated Tax Due Date for the 2020 Tax Year\nIf you receive a W-2 from your employer, federal and state income taxes are taken directly from your paycheck before you receive your paycheck and you can ignore this date. Things work a little differently if you're self-employed, however. Whether you run your own business, work as a freelancer or earn extra money with a side gig, the IRS expects you to pay taxes on your earnings. When your tax liability goes above a certain threshold, you'll generally make estimated tax payments to the IRS every quarter. January 15, 2021, is the last day to make your final estimated tax payment for 2020.\nHow much you owe can vary widely, depending on which tax deductions and tax credits you end up claiming when you file your tax return. Another factor is if you live somewhere that levies state taxes. This IRS form can help you make an accurate guess. (It's called \"estimated tax\" for a reason.) A tax professional can also provide personalized guidance. END
 TITLE: 2021 Tax Deadlines You Need to Know CONTENT: February 12, 2021\n-----------------\n### IRS Begins Accepting 2020 Tax Returns\nThis is the day that the IRS will begin accepting and processing 2020 tax returns. Once tax season gets rolling, be on the lookout for important documents you'll need on hand when filing your tax return. These documents likely include:\n*   W-2s from employers (or, if you're self-employed, 1099s from clients who paid you for work).\n*   Documents related to contributions you made to a tax-advantaged retirement account, such as a 401(k) or traditional IRA. The same goes for contributions to a health savings account.\n*   Documents related to interest paid on student loans. The IRS will allow you to deduct up to $2,500 from your 2020 taxable income. END
 TITLE: 2021 Tax Deadlines You Need to Know CONTENT: May 17, 2021\n------------\n### Due Date for 2020 Tax Returns, and First Estimated Tax Payment for 2021\nThe IRS recently extended the official deadline for filing your 2020 tax return to May 17 due to challenges taxpayers continue to face as a result of the coronavirus crisis.\nIf you're making estimated tax payments in 2021, this is also when your estimated tax payment is due for the income earned between January 1 and March 31.\nYou'll want to gather up all relevant documents ahead of this date in case you run into any unexpected delays. If you plan on working with a tax professional, keep in mind that this is probably their busiest day of the year—the sooner you begin the process, the better. For those expecting a tax refund, the IRS says you'll likely get it sooner if you file electronically and enroll in direct deposit. END
 TITLE: 2021 Tax Deadlines You Need to Know CONTENT: June 15, 2021\n-------------\n### Due Date for Second Estimated Tax Payment for 2021\nYou'll make your second estimated tax payment by June 15, 2021, this time for income earned between April 1 and May 31. END
 TITLE: 2021 Tax Deadlines You Need to Know CONTENT: October 15, 2021\n----------------\n### Last Day to File Your 2020 Tax Return With an Extension\nAs the world continues its fight against a global pandemic, many people are navigating job loss, health concerns, and financial disruptions. If you're unable to file your tax return by April 15, take heart in knowing that you can file an extension and push the due date back by six months. An extension would give you until October 15 to complete all your paperwork and submit it to the IRS.\nThe one caveat, however, is that those who owe money to the IRS will still have to pay it by April 15. While unpaid taxes do not show up on your credit report, you may encounter hefty fees for ignoring the obligation. Fortunately, the IRS offers payment plans and short-term extensions to eligible taxpayers. END
 TITLE: 2021 Tax Deadlines You Need to Know CONTENT: Important Tax Filing Dates for Businesses\n-----------------------------------------\nWorkers aren't the only ones who have tax deadlines. Businesses have tax obligations all their own. Here are some important dates for business owners to keep in mind this year:\n*   **February 1, 2021**: Businesses that had employees in 2020 must submit their W-2 forms to the IRS. Businesses that paid independent contractors in 2020 must submit their 1099 forms to the IRS.\n*   **March 15, 2021**: Partnerships and S-corporations must file their 2020 business tax returns.\n*   **April 15, 2021**: Deadline for corporations to file their 2020 business tax returns.\n*   **September 15, 2021**: Last day for S-corporations and partnerships to file their tax returns if they've been granted an extension.\n*   **October 15, 2021**: Final day for corporations to file a tax return if they've received an extension.\nBeing aware of important 2021 tax deadlines can make for a smoother tax season and help you stay on top of your tax obligations. Consider it a key part of maintaining your financial health. END
 TITLE: What Is a Strategic Foreclosure? CONTENT: What Does It Mean to Walk Away From Your Home Loan?\n---------------------------------------------------\nReasons beyond a homeowner's control can wreak havoc on a property's value and cause you to wind up with negative equity and limited options. When you're upside down on a mortgage, you may have a hard time selling your home or you might be frozen out of certain other options such as refinancing.\nWhen breaking even on your mortgage is becoming increasingly out of reach, a strategic foreclosure essentially allows you to cut your losses. It may involve redirecting your mortgage payments toward other debts while building up your cash savings until the bank eventually seizes the property. In addition to devastating your credit, which we'll unpack shortly, other consequences may also include:\n*   **Possible debt after the foreclosure:** Once the foreclosure goes through, the bank will likely try to sell the property. In some cases, you may be obligated to pay the difference between your outstanding loan balance and the final sale price (also known as a deficiency balance).\n*   **Difficulty qualifying for a future mortgage:** When applying for another mortgage down the line, lenders will be wary of approving your application if they see that you've defaulted on a past home loan, especially if it happened recently. Others may charge you a higher interest rate or tack on extra fees to mitigate their lending risk. END
 TITLE: What Is a Strategic Foreclosure? CONTENT: How Does Walking Away From Your Mortgage Affect Your Credit?\n------------------------------------------------------------\nAbandoning your mortgage can have serious and long-lasting effects on your credit. It will likely pop up on your credit report within a month or so of the lender initiating its foreclosure proceedings. What's more, it will remain there for seven years from your first missed payment, and there's no way to shorten this timeline.\nYour credit score is also more likely to take a bigger hit if there are other negative remarks on your credit report—like a history of late payments, other delinquent accounts or high credit utilization on your credit cards. Staying current on all your accounts and keeping your revolving balances low can help rehab your credit score after a foreclosure, though it will take time. END
 TITLE: What Is a Strategic Foreclosure? CONTENT: Alternatives to Walking Away From Your House\n--------------------------------------------\nWhen weighing the pros and cons, you may feel understandably hesitant about going through with a strategic foreclosure. Thankfully, there are some alternatives that could help you get back on the right track financially without having to walk away from your home. Here are some potential solutions to consider:\n*   **Try to negotiate a short sale.** Your lender may agree to let you sell your home for an amount that's lower than what you owe on the loan. Known as a short sale, it allows you to cut your losses in a way that avoids foreclosure. Short sales do have a negative impact on your credit, but it's not as significant as a foreclosure. Think of it as a best-worst option. A similar solution is something called a deed in lieu of foreclosure, which is when the lender agrees to cut you loose from your mortgage payments if you give up the property deed.\n*   **Consider refinancing.** If you're tied to a high-interest loan, a good portion of your monthly payment may be getting diverted from your principal balance. Refinancing and getting a better interest rate can help you chip away at that amount faster—and increase your home equity quicker. As a result, refinancing could help you get out from under an upside down mortgage without having to go through a foreclosure. Be prepared for your lender to say no, however, as borrowers are typically required to have at least some equity in the home to qualify for a refinance.\n*   **Seek help from a nonprofit organization.** Sometimes a little financial guidance can go a long way. Before moving forward with a strategic default, consider reaching out to a nonprofit credit counselor. These organizations are designed to help consumers create a budget, better understand their credit reports and credit scores, and improve their financial literacy. Taking these steps might be enough to help you solve your mortgage woes without defaulting on your loan.\n*   **Look into a debt management plan.** This involves making payments to a nonprofit credit counseling agency that will in turn make sure your creditors get paid. Debt management could help you lower your interest rates and pay down your accounts to free up money you can then put toward the principal balance of your mortgage, which will help you build up more equity. END
 TITLE: What Are the Pros and Cons for Rent-to-Own? CONTENT: What Is Rent-to-Own and How Does it Work?\n-----------------------------------------\nA rent-to-own contract allows you to rent a home for a specified period of time while providing you the option to buy it before the agreement expires. It essentially takes a standard rental agreement and bakes in the option to buy the property at a later date. Depending on the contract, a portion of your monthly rent payment could be put toward the eventual purchase price, helping you save as you go while building home equity along the way.\nRent-to-own contracts make the most sense for folks who know they want to be homeowners someday, but aren't yet ready to take the plunge. Whether you need time to improve your credit or save for a down payment, this type of arrangement can provide some breathing room while you get your financial house in order.\nRent-to-own contracts generally fall into one of the following two categories:\n*   **Lease option**: You'll have the option to buy the home if you want to, but are under no legal obligation to do so. You can walk away after the lease is up if you change your mind.\n*   **Lease purchase**: You'll be legally obligated to purchase the home at the end of the lease agreement. If you abandon the deal because you no longer want it or are unable to afford it, you could be in for a legal battle.\nGoing with a rent-to-own contract doesn't always make financial sense. One metric that can help clarify whether it's more affordable to rent or buy is something called the price-to-rent ratio. Begin by taking the median home price in your area and dividing it by your annual rent costs. If the total is below 15, continuing to rent could be more expensive than buying. END
 TITLE: What Are the Pros and Cons for Rent-to-Own? CONTENT: What Are the Benefits of Rent-to-Own?\n-------------------------------------\nAs mentioned earlier, signing a rent-to-own contract can help you build equity in the home if it allows you to direct a portion of your monthly rent payment toward the purchase price. Over time, it can add up and amount to a sizable down payment that you may have struggled to save otherwise. Of course, every agreement is different, which is why it's always a good idea to read it line for line before signing.\nThese types of contracts are also ideal for potential homeowners who are dealing with short-term credit issues. If a less-than-perfect credit score is getting in the way of qualifying you for a mortgage, a rent-to-own contract could help you make movement toward buying a home while you take steps to repair your credit. Another perk is that you may be able to lock in the purchase price if the contract allows, which will give you peace of mind knowing the price won't go up at the end of the lease agreement. Knowing this ahead of time can also help you budget and save up a larger down payment in the interim.\nAnother detail worth mentioning is that you won't have to deal with the hassle or cost of moving once the lease expires because you're already living in the home. This could potentially save you thousands on everything from movers to supplies to furniture and more. And, if you decide you don't like the home by the time your lease is up, you don't have to go through with the purchase—as long as your agreement allows you to back out. END
 TITLE: What Are the Pros and Cons for Rent-to-Own? CONTENT: What Are the Downsides of Rent-to-Own?\n--------------------------------------\nThere are some potential downsides when considering a rent-to-own agreement. For one, you may be on the hook for a nonrefundable upfront fee, although this is usually applied to your down payment when you eventually buy the home. Again, every contract is different, but 1% of the purchase price is a standard option fee.\nWhat's more, if part of your monthly rent is indeed applied to your down payment, your rent will likely be higher than average for your market—sometimes to the tune of 10% to 15%. Your contract may also specify that you're responsible for property maintenance while renting. This could be a costly detail if your roof springs a leak or your air conditioning gives out.\nWhen all is said and done, there's also no guarantee that you'll ultimately qualify for a mortgage at the end of the lease agreement. However, those who use their rental period to save, strengthen their credit and firm up their finances will be better positioned to qualify. Just keep in mind that if the owner defaults on their mortgage and the home is foreclosed on before you buy it, you could be forced to leave.\nAnother major downside is that you might sign a lease agreement that obligates you to buy the property at the end of the lease period no matter what. If you can't afford to buy the property, the legal requirement to buy it could land you in legal or financial hot water. Before you sign anything, carefully read it and make sure you understand it. If you have questions, consult an expert or attorney. END
 TITLE: What Are the Pros and Cons for Rent-to-Own? CONTENT: How Do Rent-to-Owns Affect Your Credit?\n---------------------------------------\nThe only accounts that show up on your credit report—and, in turn, shape your credit score—are ones that are reported to the credit bureaus. Since rent-to-own agreements generally are not, they should have no impact on your credit. However, those who are looking to use positive rental payments to bolster their credit score could ask their landlord if they're open to reporting their payments.\nIf so, your credit score could go up if you simply make all your rent payments on time. Of course, it all comes down to personal responsibility—late or missed payments will reflect negatively. To improve the likelihood that you'll be able to purchase the property once the lease period is up, keep tabs on every component of your credit. Pay down debt as much as you can, continue making all payments on time and avoid opening new accounts unnecessarily. END
 TITLE: Should I Only Use a Credit Card for Bills and Recurring Transactions? CONTENT: Benefits of Using Credit Cards for Recurring Transactions\n---------------------------------------------------------\nThere are many reasons why using credit cards for recurring monthly expenses can be a smart financial move—not the least of which is that handling payments for things like your cellphone and video streaming accounts with a credit card you have set to autopay helps make sure you never miss a payment. Here are some additional perks. END
 TITLE: Should I Only Use a Credit Card for Bills and Recurring Transactions? CONTENT: The Perks of Using Credit Cards for Everyday Spending\n-----------------------------------------------------\nUsing credit cards for recurring transactions comes with quite a few perks. The same can also be said for using a credit card to cover everyday spending that goes beyond your monthly bills. Opting for a debit card or cash means missing out on potential points, rewards and other perks.\nWhether you're spending on groceries, gas, eating out or staying at a hotel, there are plenty of rewards cards that let you earn while you do your regular shopping. On top of that, you could land a lucrative sign-up bonus in the process. Rewards cards are ideal for eligible consumers who don't carry a balance from month to month. If you do, high interest rates could negate the benefits. You'll also want to compare any annual fees to see if they're worth it.\nFurther, it's not uncommon for credit cards to offer additional consumer protections such as extended warranties on goods you buy, increased fraud protection (more on that later) and purchase protection. END
 TITLE: Should I Only Use a Credit Card for Bills and Recurring Transactions? CONTENT: The Downside of Using Credit Cards for Daily Expenses\n-----------------------------------------------------\nSwiping your credit card to cover daily expenses is only a good idea if you're properly budgeting to ensure your debt doesn't get out of hand. Things can get complicated if you're blindly using credit cards to cover transactions without keeping a close eye on your balances. Credit card spending comes with benefits, sure, but doing so irresponsibly could trap you in a cycle of debt that's hard to escape from. Instead, it's best to charge purchases you plan on paying off in full each month. If something comes up that throws off your budget, aim to keep your balance at or below 30% of your credit limit. Doing so can help protect your FICO® Score from taking a hit. END
 TITLE: Should I Only Use a Credit Card for Bills and Recurring Transactions? CONTENT: Credit Cards That Offer Fraud Protection\n----------------------------------------\nAgain, if you're the victim of credit card fraud, you'll only be liable for $50 of unauthorized charges. The following credit card goes further and offers additional protections:\n*   **Capital One Venture Rewards Credit Card**: This card is loaded with security features. Cardholders can create virtual credit card numbers, which lets them shop online without exposing their account number. They can also easily lock and unlock their card online or with the app. END
 TITLE: Should I Only Use a Credit Card for Bills and Recurring Transactions? CONTENT: *   **Capital One Venture Rewards Credit Card**: This card is loaded with security features. Cardholders can create virtual credit card numbers, which lets them shop online without exposing their account number. They can also easily lock and unlock their card online or with the app. END
 TITLE: Should I Only Use a Credit Card for Bills and Recurring Transactions? CONTENT: **Capital One Venture Rewards Credit Card**: This card is loaded with security features. Cardholders can create virtual credit card numbers, which lets them shop online without exposing their account number. They can also easily lock and unlock their card online or with the app. END
 TITLE: How Does My Income Affect My Credit Limit? CONTENT: Do Lenders Look at Income to Determine Credit?\n----------------------------------------------\nMost lenders do look at an applicant's income when determining their credit limit. Creditors want to feel confident that you have the ability to repay your debt obligations without any issues, and knowing your income helps with that.\nYour income is not among the information that's included on your credit report, and the way you provide it to a lender can vary depending on the type of credit. If you're applying for a credit card, for example, the income amount you put on your signed application is usually what the creditor will use to help determine your credit limit.\nLenders sometimes go a step further and require that you verify your stated income. This is common with auto loans and mortgages. You may be asked for recent pay stubs or tax returns to confirm your employment and earnings. These details help lenders determine your debt-to-income ratio (DTI), which measures how your debt obligations relate to your earnings. A borrower with a high income is less impressive to a lender if they are deep in debt.\nTo figure out your DTI, simply divide your total monthly debt by your gross monthly income—the lower your percentage, the better. Many lenders prefer a DTI below 36%. A lower DTI paired with solid income could unlock a higher credit limit. END
 TITLE: How Does My Income Affect My Credit Limit? CONTENT: What Else Determines Your Credit Limit?\n---------------------------------------\nIn addition to looking at your income and DTI when deciding a credit limit, lenders will also zero in on your credit history and credit score. Both provide a snapshot of your financial health, but in different ways.\nYour credit report summarizes your open accounts and debt obligations. It includes information such as your credit account balances, payment history and credit utilization ratio, which is the percentage of your credit limits you're currently using.\nCredit utilization works like this: Say you have a $500 balance on a credit card with a $1,000 credit limit. Because $500 is 50% of $1,000, your credit utilization ratio for that account is 50%. Your credit utilization is considered on an overall and a per-card basis, and it's recommended to keep this ratio below 30% across the board. As far as your credit scores are concerned, the lower your credit utilization, the better.\nThe information on your credit report is also what determines your credit scores, which are represented as a number ranging from 300 to 850 in the most commonly used consumer score models. Most lenders rely on a version of your FICO® Score☉ when making lending decisions, but there are many types of credit scores to be aware of. It's important to remember that while your income can affect your credit limit, it has no bearing on your credit scores, so increasing your income may net you a higher limit but result in no change to your credit scores. When it comes to determining your credit limit, lenders consider your scores alongside your credit history, current debt load and income. END
 TITLE: How Does My Income Affect My Credit Limit? CONTENT: How Does Your Credit Limit Impact Credit Score?\n-----------------------------------------------\nYour credit utilization is an important factor in your scores, and how big or small your credit limits are can greatly affect it. Even if you're a high earner with a great job, your credit score will suffer if you've maxed out all your open accounts. In some instances, it could prevent you from getting approved for a new account altogether.\nIncreasing your credit limit can bring down your credit utilization ratio and help lift your credit score. The opposite is also true. If your available credit goes down while your spending habits stay the same, it can drag down your score. Closing out old credit cards, missing payments or reporting a reduction in your income all could result in lower credit limits. END
 TITLE: How Does My Income Affect My Credit Limit? CONTENT: How to Increase Your Credit Limit\n---------------------------------\nOne benefit of increasing your credit limit is that it can positively impact your credit score pretty quickly, assuming you don't drive up your balances. One way to do it is to simply call up your creditor and ask. (Yes, it might be that easy.) It isn't unreasonable to expect a 10% to 20% bump.\nAnother way to increase your credit limit is to open an entirely new credit account—and use it responsibly. If you're unable to pay off the balance in full each month, aiming to keep its utilization rate under 30% can go a long way in improving your credit score. END
 TITLE: How Do Online Wills Work? CONTENT: What Is an Online Will?\n-----------------------\nAn online will is a legal document that functions the same way as a will that's drafted by a lawyer. They're made without the help of a live professional, but the majority of online will services do provide some level of guidance. Most will ask you for information to help you build your will, such as a list of assets, whom you'd like to act as guardian for your minor-age children and who will be the executor (the person you appoint to manage your estate and execute your will after your death).\nYou'll need to consider all of your bank accounts, insurance policies, retirement accounts and any other investment accounts you may have when putting together a list of beneficiaries who will inherit your assets when the time comes.\nAs long as your online will is put together properly and is compliant with your state's unique estate laws, it will be considered a legal and valid document. This is why it's so important to go with a reputable company that specializes in online wills.\nNo matter what, a well-prepared will should clearly state that the person creating it is of sound mind and intends to bestow their assets. In addition to having the will creator's signature, wills should also be signed by witnesses who have no stake in the will's outcome. END
 TITLE: How Do Online Wills Work? CONTENT: Is an Online Will a Good Idea?\n------------------------------\nThere are benefits to creating an online will. For starters, it ensures that you have a will in place should you pass. Thanks to their ease of use, online will services have helped streamline the process and dial down some of the intimidation. Moreover, some folks may prefer to do it from the comfort of home without having to make multiple visits to an attorney. Doing it online can also get the job done faster than going with a traditional lawyer, and the cost is often considerably cheaper. (More on this in a moment.)\nOnline wills aren't for everybody, however. While useful for those with fairly basic estate planning needs, they may prove insufficient if your situation is more complex or you have a large estate. Those who've been divorced, have stepchildren or own multiple properties may need the guidance of a skilled estate planning attorney when mapping out their will. The same goes for business owners who plan on including assets related to their company in their will. END
 TITLE: How Do Online Wills Work? CONTENT: What Costs Can You Expect With an Online Will?\n----------------------------------------------\nThe cost of creating an online will can vary greatly depending on the service you use. Sites like FreeWill and Do Your Own Will, for example, are completely free. Meanwhile, Rocket Lawyer charges a monthly rate of $39.99 that includes free will writing, among other legal services. Other sites assess a flat, one-time fee that could range anywhere from $19.95 to $89.\nJust keep in mind that not all online will companies are created equal. Some may not be able to create a will that's valid in your state or have the ability to create a living trust, if that's something you need. At the same time, some platforms come with extra perks you may find handy. This includes secure online document storage or the ability to connect with a lawyer if you have questions. Your best bet is to do your research and settle on an online will provider that best meets your needs. END
 TITLE: How Do Online Wills Work? CONTENT: What to Do After You Create an Online Will\n------------------------------------------\nIf you're wondering if your signed will needs to be notarized, the answer is not always. A properly prepared will can be legal and valid without it. However, some witnesses may choose to provide an additional document called a self-proving affidavit, which verifies that they indeed witnessed the signing of the will. This _does_ require a notary.\nBeyond that, you'll want to keep your will in a safe place. Some online will companies provide secure digital storage to do just that. If that's not an option and you decide to store your online will on a personal device, encrypting your files can provide an extra layer of security.\nNo matter where you store it, be sure that your loved ones and your executor know where to find it and have the means to access it. END
 TITLE: How Do Online Wills Work? CONTENT: Additional Elements of an Estate Plan\n-------------------------------------\nCreating a will is just one part of a comprehensive estate plan. When someone dies, a special court validates the person's will during a process called probate. The court also authorizes someone to distribute their estate to their requested beneficiaries. Having a will in place ensures your wishes will be granted, but does not help you avoid the probate process, which can be timely and expensive. Creating a living trust in addition to a will is one way to avoid probate and simplify the distribution of your estate to your heirs. Even if you don't have a lot of assets, a trust can still be helpful. And unlike a will, which is a public document, a living trust is private.\nA solid estate plan considers durable powers of attorney, as well. These are trusted people you appoint to make crucial decisions for you in the event that you become incapacitated or unable to do so yourself. There are two types of powers of attorney—one to oversee your finances and another to manage responsibilities related to your medical care. END
 TITLE: Does Getting Preapproved for a Car Loan Hurt Your Credit? CONTENT: What Is the Difference Between Prequalification and Preapproval?\n----------------------------------------------------------------\nThe terms preapproval and prequalification are sometimes used interchangeably, but they may mean two different things depending on your lender and the type of loan. Both are ways that lenders initially assess how likely you are to get approved for a new loan and estimate your loan amount, interest rate and terms.\nPrequalification typically involves a soft credit inquiry, which does not affect your credit score, though some lenders may skip this altogether. You may also need to provide basic information like your annual income and monthly expenses. The prequalification offer you receive could change, sometimes significantly, once the lender takes a deeper dive into your credit during the application process.\nThe preapproval process for auto loans (and mortgages) is more involved than prequalification, resulting in a more accurate approved loan amount. The lender will conduct a hard credit inquiry to review your credit more thoroughly and may also require personal and financial details such as your employment status, monthly income, debt balances and more. They'll then tell you the amount you can borrow, with some lenders even providing an actual check you can use at the dealership to boost your bargaining power. END
 TITLE: Does Getting Preapproved for a Car Loan Hurt Your Credit? CONTENT: How Do Car Loan Preapprovals Affect Your Credit?\n------------------------------------------------\nCar loan preapprovals trigger a hard credit inquiry when the lender checks your credit, which could knock your credit score a few points temporarily. The good news is most credit scoring models allow consumers to shop around for auto loan rates without seriously damaging their credit scores. Multiple hard inquiries for auto loan preapprovals are generally treated as a single inquiry by scoring models if they occur within a 14-day window.\nHaving a preapproval letter does not guarantee you'll get approved for a loan. If there are changes in your finances between when you are preapproved and when you apply for the loan, you could ultimately be declined. One instance where this could occur is if you were to lose your job during the application process. END
 TITLE: Does Getting Preapproved for a Car Loan Hurt Your Credit? CONTENT: Check Your Credit Before Applying for Auto Loans\n------------------------------------------------\nIt's wise to check your credit three to six months before you plan on financing any large purchase. You can get your credit score and credit report for free with Experian to see where you stand. This allows you to spot problem areas you can address now to boost your score before applying for an auto loan. If you have time to work on improving your credit score, you could be rewarded with better interest rates and terms on your car loan.\nKnowing your credit profile can help you narrow your search to auto loan lenders that are most likely to approve you based on their credit requirements. From there, you can seek preapprovals with multiple lenders, shop around, and look for the best offer for your budget. END
 TITLE: Are Virtual Credit Cards Safe? CONTENT: What Is a Virtual Credit Card?\n------------------------------\nVirtual credit cards provide disposable card numbers you can use to complete online transactions without putting the number printed on your physical card at risk. These cards are linked to your credit card account, so activity shows up on your statement just like any other purchase. All the while, your account number is never exposed. Virtual credit cards are available through select credit card issuers that offer them as well as by third-party services. In some cases, a virtual card becomes tied to the first merchant they're used to make a purchase with, or are only good for one transaction before they become unusable.\nNot all companies offer virtual cards, so check in with your credit card issuers to see if it's an option. With select Citi cards, for example, you can enroll in a virtual credit card program and receive a randomly generated virtual account number that you can use while shopping online. Capital One's Eno program operates a little differently, providing unique virtual card numbers through your web browser that you can use at specific merchant sites. END
 TITLE: Are Virtual Credit Cards Safe? CONTENT: Do Virtual Credit Cards Help Keep Your Information Safe?\n--------------------------------------------------------\nHalf of consumers currently do most of their shopping online, according to a recent Qubit survey. Using virtual credit cards can provide peace of mind. Even if a virtual card number is compromised, it may not do much good to a criminal because it might already have been deactivated.\nThey may still rack up unauthorized charges, but you won't have to go through the headache of closing out your account, replacing your card and updating your payment methods. You can simply report the unapproved transactions and move on. Because of the Fair Credit Billing Act, you'll never be responsible for more than $50 in fraudulent charges, and many credit card issuers bring that liability down to zero.\nVirtual credit cards essentially give you a leg up over fraudsters, especially if you're using a single-use number. Not only will it mask your actual account number—it'll also be invalid after one transaction, rendering it useless to hackers. In some cases, consumers can even establish a virtual credit card number that has a predetermined spending limit and expiration date. END
 TITLE: Are Virtual Credit Cards Safe? CONTENT: Benefits and Drawbacks of Virtual Credit Cards\n----------------------------------------------\nVirtual credit cards provide a lot of advantages to consumers, but they aren't perfect. Weighing the pros and cons can help you determine if they're right for you. END
 TITLE: Are Virtual Credit Cards Safe? CONTENT: Alternative Ways to Protect Your Information When Shopping Online\n-----------------------------------------------------------------\nVirtual credit cards are a great weapon against potential fraud, but there are some other easy steps consumers can take to prevent identity theft. Here are some additional safeguards to consider:\n*   **Take advantage of identity theft monitoring.** Identity theft protection services, including what's offered by Experian, can provide comprehensive ID monitoring and alerts. If there's a change on your credit report with any of the three credit bureaus, you'll be the first to know. Experian's service also includes dark web surveillance that scans the deepest corners of the web to provide you with some extra peace of mind.\n*   **Opt into Visa Checkout.** This free service allows you to securely store your Visa credit card information. When shopping with a participating online retailer, you can then pay with Visa Checkout. Your credit card information will automatically pop up so you don't have to enter it again. Instead of relying on the retailer to securely store your card information, you're covered with Visa's standard security protections. END
 TITLE: Stimulus Check Delayed? Here’s How to Cover Your Costs CONTENT: 1\\. Check the Status of Your Stimulus Payment\n---------------------------------------------\nIf you haven't yet received your payment, it may be because you don't qualify based on your adjusted gross income or because someone claimed you as a dependent on their tax filing. You also won't receive it if you, your spouse or one of your dependents used an Individual Tax Identification Number (ITIN) when you filed your federal tax return.\nIf you qualify, but are still waiting, there could be several reasons for the delay. Perhaps you changed your address, closed a bank account or didn't file taxes in 2019 and haven't yet filed for 2021.\nYou can use the IRS website to check the status of your payment, see how your payment will be sent and send the IRS additional information it needs to process the disbursement. END
 TITLE: Stimulus Check Delayed? Here’s How to Cover Your Costs CONTENT: 2\\. Apply for Unemployment\n--------------------------\nIn normal times, unemployment is for those who are between jobs and looking for work. Today, more are having to rely on the benefit system to make ends meet as many businesses have shut down to slow the spread of disease.\nYou may be eligible if you've had to stop working, had hours cut or your pay decreased, and you will need to apply through your state agency. The American Rescue Plan Act of 2021, passed in March, extended unemployment benefits into 2021. See How Unemployment Benefits Are Changing in 2021 for the most up-to-date information.\nSome people still won't qualify, perhaps because they voluntarily left their job, aren't able to work or weren't working and paying into the unemployment fund before the COVID-19 pandemic.\nThe pandemic-related federal guidelines also extend benefits to those who have previously used up unemployment benefits, meaning they may now be eligible for additional assistance. END
 TITLE: Stimulus Check Delayed? Here’s How to Cover Your Costs CONTENT: 3\\. Ask Creditors for Flexibility\n---------------------------------\nConsider reaching out to your creditors and asking if they're offering hardship accommodations. Many financial institutions are offering this type of assistance to customers, which could include:\n*   Forbearance or payment accomodation (temporarily pausing or lowering payments)\n*   Waived fees\n*   Lower interest rates\nSome loans, such as certain federal student loans, have automatically been put into temporary forbearance with a 0% interest rate.\nEven if you can afford your bills, getting a lower interest rate could help free up money for other necessary expenses or allow you to build up your savings. END
 TITLE: Stimulus Check Delayed? Here’s How to Cover Your Costs CONTENT: 4\\. Cut Expenses\n----------------\nThe coronavirus drastically changed how households spend money. Finding ways to save even more money will make it easier to cover your remaining expenses.\nYou could look for ways to cut back on certain bills. For example, if you're driving less, you may be able to contact your auto insurance agent and get a discount or change your policy to decrease your premiums.\nOr, if you're continuing to eat at home and spend more on groceries, it could be a good time to look for a cash back grocery card. If that's not an option, certain apps offer cash back rewards on grocery purchases no matter how you pay. You can also start meal planning and figure out how to make hearty meals on a budget. END
 TITLE: Stimulus Check Delayed? Here’s How to Cover Your Costs CONTENT: 5\\. Find New Sources of Income\n------------------------------\nYou may be able to make money with a new part- or full-time job, or flexible gig work. For example, many delivery services are hiring, and there are many ways to make money from home.\nYou can look for openings and opportunities through traditional job boards and online freelance marketplaces. Also, reach out to friends, family members and contacts on social media to see if anyone is in need of an extra (remote) hand. END
 TITLE: Stimulus Check Delayed? Here’s How to Cover Your Costs CONTENT: 6\\. Tap Your Savings\n--------------------\nIf you have an emergency fund, it's time to put that money to work. An Experian survey found about one-third of respondents plan to use their savings for debt payments. Combined with the accommodations you asked for from creditors, tapping your savings could go a long way.\nYou might be able to take money from your retirement savings if you have a 401(k) or IRA. The CARES Act waived the penalty on up to $100,000 worth of withdrawals if you've been impacted by the coronavirus.\nGenerally, tapping retirement funds is a last resort, but it might make sense for some households right now. END
 TITLE: Stimulus Check Delayed? Here’s How to Cover Your Costs CONTENT: 7\\. Research Free Assistance\n----------------------------\nNonprofit and for-profit organizations are stepping up to offer different types of assistance to households in need. These can range from free groceries and meal delivery services to direct cash or gift card distributions. Individual professionals are also offering a hand with free and low-cost financial planning or counseling over the phone and online.\nMany national organizations have coronavirus-specific pages on their websites, but also search for local resources. Some cities, neighborhoods and even streets have mutual aid groups online where you can offer or request help. There are also funds for people with specific identities or who work in certain industries. END
 TITLE: Stimulus Check Delayed? Here’s How to Cover Your Costs CONTENT: 8\\. Look for Funding\n--------------------\nYou might have already noticed creditors tightening their purse strings if your credit card's limit decreased or your card was closed. And it could be more difficult to get approved for a new loan or credit card. However, it isn't impossible.\nThere are emergency loans for people with poor or excellent credit, and online lenders that can often quickly process and fund new loans. Small business owners, including the self-employed, may also have access to additional types of funding. END
 TITLE: Stimulus Check Delayed? Here’s How to Cover Your Costs CONTENT: 9\\. Beware of Scams\n-------------------\nDesperate times may call for extreme measures, but don't be blinded to the need to protect yourself. Fraudsters are using the coronavirus as the basis for new (or revised) scams to take your money and steal your personal information. Stay on your toes and watch out for scams. END
 TITLE: Stimulus Check Delayed? Here’s How to Cover Your Costs CONTENT: Stay Informed\n-------------\nWhile you wait for your stimulus payment to arrive, stay up-to-date on the latest announcements from the IRS to get a better idea of when you might receive yours, and find out what other relief you may be eligible for as part of the American Rescue Plan Act of 2021.\nAlso see:\n*   COVID-19 (Coronavirus) Credit Card and Debt Relief\n*   Protecting Your Credit During the COVID-19 (Coronavirus) Crisis\n*   How Unemployment Benefits Are Changing in 2021\n*   Student Loan Borrowers Get Extended Relief Under New Provisions\n*   New PPP Loan Program Prioritizes Smallest Businesses END
 TITLE: What Is Experian Boost? CONTENT: How Does Experian Boost Work?\n-----------------------------\nNormally, utility and phone payments do not factor into your credit scores. When you use Experian Boost, however, Experian uses your bank records to find on-time qualifying payments for these monthly bills. Experian Boost also now factors in on-time Netflix® payments, giving consumers even more opportunity to improve their credit scores.\nBy adding these records to your credit file, Experian Boost helps you build positive payment history. Payment history is the most important factor in calculating your credit scores, so adding records of on-time payments can be very valuable. Keep in mind, Experian Boost only considers positive payment history on these accounts, so late payments will not lower your credit scores.\nThe length of your credit history also plays a big role in your credit scores. Adding more accounts to your credit file with Experian Boost helps you build credit history by showing more evidence of active accounts and on-time payments. END
 TITLE: What Is Experian Boost? CONTENT: How Is Experian Boost Different?\n--------------------------------\nExperian Boost isn't just different—it's the first-ever service to give users the ability to increase their FICO® Score in a matter of minutes. So far, over 4 million Americans have connected their accounts to Experian Boost. As mentioned, certain payments have never before factored into your credit scores. Experian Boost is the first product to change that, boosting your credit scores immediately if qualified on-time payments are found in your bank accounts. END
 TITLE: What Is Experian Boost? CONTENT: Who Can Benefit From Experian Boost?\n------------------------------------\nAcross the country, Experian Boost has raised Americans' credit scores by more than 29 million points in total. Anyone can sign up for Experian Boost, but consumers with little to no credit and those with very poor to fair credit scores tend to benefit the most.\nOut of each FICO credit tier—very poor, fair, good, very good and exceptional—the majority (87%) of people with a very poor score who used Experian Boost saw their FICO® Score increase. Among people with a fair score, 63% saw their scores increase. END
 TITLE: What Is Experian Boost? CONTENT: How Much Does Experian Boost Cost?\n----------------------------------\nExperian Boost is completely free. Once you sign up, you'll automatically be enrolled in a free Experian CreditWorks℠ Basic membership, which offers additional services such as free credit monitoring and a free FICO® Score. There is no additional charge to connect your bank accounts, and if you choose to disconnect your account, you can keep your Experian CreditWorks Basic membership.\nIf you pay a utility, telecom or Netflix bill using your bank accounts, consider using Experian Boost to get credit for your past on-time payments and instantly raise your credit scores. You can always get your free credit score from Experian to stay on top of your credit and see how you may be able to improve your scores. END
 TITLE: Does Experian Boost Work? CONTENT: How Is Experian Boost Helping Consumers?\n----------------------------------------\nA growing number of people looking to improve their scores or establish credit history are trying Experian Boost and experiencing an instant credit score increase. In fact, consumers have collectively added more than 29 million points to their credit scores using Experian Boost.\nOffering more ways to help consumers take control of their credit, Experian recently announced that Netflix payments could be factored into Experian Boost scores. The popularity of Netflix gives more opportunity for consumers to improve their credit scores based on their other on-time payments. END
 TITLE: Does Experian Boost Work? CONTENT: Will Lenders Use My Experian Boost Score?\n-----------------------------------------\nHelping consumers raise their credit scores so they can obtain credit when they need it is one of the main reasons Experian Boost was created. Experian Boost impacts multiple credit scoring models, so as long as your lender utilizes the most common versions of the FICO® Score and VantageScore®, they will see your boosted credit scores when they request your credit report from Experian.\nYou may even find lenders who recommend Experian Boost when you're getting ready to apply for a loan. For example, home equity lending specialist Spring EQ says Experian Boost has become a staple in their lending process and something they recommend to applicants when they believe it can make a difference in granting them a loan with lower interest rates and fees.\nMake sure to keep your accounts connected when applying for new credit so lenders can see your boosted credit scores on your Experian report. If you disconnect your bank accounts from Experian Boost, your credit scores will be calculated without that additional information. END
 TITLE: Does Experian Boost Work? CONTENT: Is Experian Boost Worth It?\n---------------------------\nExperian Boost is a free service that can help you raise your FICO® Score in a matter of minutes. For anyone who has worked to improve their credit scores over months or even years, seeing those credit scores go up instantly can be extremely rewarding.\nHaving a good credit score not only makes you feel good, but it can also help you save money and expose you to new financial opportunities. Your improved FICO® Score may help you get a favorable interest rate on a new loan, which could save you hundreds or even thousands of dollars over the life of the loan. Your improved credit score may also make you eligible for a new type of credit. These positive outcomes make Experian Boost worth it for many consumers. END
 TITLE: Does Experian Boost Work? CONTENT: How Do I Sign Up for Experian Boost?\n------------------------------------\nSigning up for Experian Boost is easy. When you go to the Experian Boost page, you'll be asked to create a free Experian account to start the process. You'll then connect your online bank accounts so Experian can search for any qualifying on-time payments. Once you verify that you want to add the accounts to your credit file, your credit scores will be calculated using the newly added payment information. The process is simple, and if you receive a boost, you'll see your FICO® Score increase in just a few minutes.\nIf you pay a utility, telecom or Netflix bill using your checking or savings account, consider trying Experian Boost to see if you can instantly raise your FICO® Score and get credit for your past on-time payments. You can always get your free FICO® Score from Experian to stay on top of your credit and see how you may be able to improve your credit scores. END
 TITLE: How to Choose the Right Lender for a Mortgage Refinance CONTENT: Should I Consider Financing With My Original Lender?\n----------------------------------------------------\nIf you're considering a refinance, it might seem easiest to turn to your existing lender to ask for a lower rate. This is certainly a possibility you should look into, but keep in mind that other lenders out there may be able to provide a better offer.\nRefinancing works by paying off your existing mortgage with a new loan, one that often has a lower APR and better terms. Doing this helps you save money on interest over time, and can also help you capitalize on newly lower interest rates.\nWorking with your current lender could make the refinancing process much easier since they already have all your information. If you've paid on time and proven you're a valuable customer, that may help you negotiate better terms, including a lower interest rate and closing costs. These savings could be even more likely if your mortgage is only a few years old, as all the paperwork and records for the initial transaction might still be accessible.\nHowever, working with your current lender may also have some drawbacks. If you don't shop around, you won't know if other lenders offer better rates and terms. You may also miss out on appealing benefits offered by another lender. END
 TITLE: How to Choose the Right Lender for a Mortgage Refinance CONTENT: How Can I Find a New Lender?\n----------------------------\nThe key to finding the best refinance deal is to get rate quotes from different lenders so you can see everything that's available. The internet has made this search process easy, but historically, you'd have to work with a mortgage broker or directly with a bank associate to find the best deal.\nHow you find a new lender will ultimately be up to you, but here are a few ways to go about it:\n1.  Work with a broker. A mortgage broker is someone that works with many mortgage lenders and can show you deals from each to find you the best fit. Since brokers work for multiple lenders, they can guide you to the best deal for your situation.\n2.  Work with someone from your bank. Banks that offer mortgage loans can connect you with a representative who specializes in mortgage and refinancing options. This specialist should be able to guide you to the best option the bank has for you, but they may leave out how their options compare to the rest of the market. Use this option if you already know what lender you want to work with or if you've researched interest rates and know what else might be out there.\n3.  Research on your own. The internet can be a great resource for people shopping for refinancing deals on their own. You can use an online broker, which can help you compare deals from multiple different lenders and find the best option much like a human broker would. Researching on your own can, however, be time-consuming as it requires you to take a detailed look at every lender and read through the fine print on each deal to make sure there are no hidden conditions. END
 TITLE: How to Choose the Right Lender for a Mortgage Refinance CONTENT: What Should You Look for in a Mortgage Lender?\n----------------------------------------------\nWhen searching for a new mortgage lender, you'll want to feel comfortable working with whomever you choose. You may find a lender that doesn't quite offer the best rates but is able to win you over with excellent customer service and reliable communication. The right lender for you probably has some combination of the following, preferably all three:\n*   **Lowest interest rate**: When you refinance, your new loan will be assigned a new interest rate. If the goal of your refinance is to find a lower interest rate, keep your eyes open for the lowest one and make sure lenders know it's a priority. Because a mortgage loan is so large, even a small change in your interest rate can end up saving you a lot of money over time.\n*   **Lowest fees**: Each mortgage comes with fees that tend to vary by lender. Look out for two types of fees: upfront fees (closing costs) that you'll pay when the refinance agreement is signed, and ongoing fees such as charges for late payments, early repayment and more. If you're refinancing to save money, make sure the refinance fees don't exceed the savings you'll realize.\n*   **Great customer service**: When looking for a new mortgage lender, seek one that you feel has good customer service. You'll interact with your lender beyond just the application process—you may need to troubleshoot your loan later on, for instance—so you'll want to feel comfortable with the company. Take note of how responsive they are, how they handle your issues and whether you feel a personal connection or comfort with the agents you speak with.\nAfter you apply for a loan, lenders are required by law to provide you with a \"good faith estimate,\" which should outline the rates and fees included in the loan. This estimate will also outline closing costs and give you a clear idea of how much refinancing will cost with that lender. Lenders must provide good faith estimates within three business days of receiving your application. END
 TITLE: How to Choose the Right Lender for a Mortgage Refinance CONTENT: How Will You Know if a Lender Is Right for You?\n-----------------------------------------------\nOnce you've found a few options that look good, think about what's most important to you in a lender and select the one that closely matches that. If you haven't already, read the lender's reviews to see what customers think of their service.\nYou'll want to make sure you're working with a reputable lender, so be sure to research the company you choose to work with. Check the Consumer Financial Protection Bureau's list of consumer complaints to see what, if anything, people are saying about your lender. END
 TITLE: How to Choose the Right Lender for a Mortgage Refinance CONTENT: Check Your Credit Before Applying for Your New Loan\n---------------------------------------------------\nBefore you start the refinance process, you should check your credit reports and scores to get an idea of what lenders will see when evaluating your application. If you don't like what you see, you still have time to address the negative factors on your credit report before submitting your refinance application.\nRemember, the process of refinancing is very much like applying for a conventional mortgage, and the better your credit score, the more likely it is you'll be able to get the best terms on your new loan. If you have good credit, use this to your advantage and try to negotiate with the lender for the best APR and terms possible.\nIf you check your credit and see any inaccurate information, make sure to begin the dispute process with any of the credit bureaus (Experian, TransUnion or Equifax) where the mistake appears. You can get a free copy of your credit reports and scores from Experian to see what shape your credit is in. Experian credit monitoring can help you better keep tabs on your credit and will quickly alert you to potential fraud or identity theft. END
 TITLE: Can Issuers Close Unused Credit Cards? CONTENT: Why Do Creditors Close Unused Accounts?\n---------------------------------------\nThere is no industry standard explaining why creditors close inactive accounts. Each card issuer has its own criteria, and very few issuers disclose their policy (check your card's terms and conditions to be sure). That said, each credit card account costs the issuer money to maintain, and inactive fee-free accounts don't generate revenue.\nCredit card issuers are not required to inform you if they decide to close your account due to inactivity, so it's important to understand what can happen if one of your accounts closes unexpectedly—and why you might want to prevent this from happening. END
 TITLE: Can Issuers Close Unused Credit Cards? CONTENT: How Will a Closed Credit Card Affect My Credit Score?\n-----------------------------------------------------\nWhen one of your credit card accounts is closed, your credit score will be impacted in two ways. Here is an overview of what will happen when your credit report reflects a closed credit card account.\n1.  Your total credit limit will decrease, and your utilization will likely increase. Though you may not ever use all of your total available credit, how much credit you use is important when calculating your credit utilization ratio. Your overall utilization ratio is calculated by dividing the total of all your revolving balances by the total of all your credit limits. That means if your total credit limit drops, your utilization (if you continue to carry the same balances) will go up.  \n    Credit utilization is the second most important factor of your credit score, and it's recommended to keep your utilization rate below 30%. If one of your credit cards is closed and your utilization goes above the 30% mark, you'll want to adjust—either by increasing your total credit limits or by reducing your spending—to get that ratio back in check.\n2.  Your length of credit history could decrease. A longer credit history and higher average age of accounts help your credit scores. When you close a credit card account, these factors may decrease, though not always right away. How much they decrease will depend on how long you had the card and the scoring model used. Credit age accounts for 15% of your FICO® Score☉ , so changes could have an impact on your scores.\nThough your credit scores are calculated based on a handful of factors, changes to your utilization and credit age could cause your scores to dip. The good thing about credit utilization, however, is that you can easily manipulate it by paying down your balances. END
 TITLE: Can Issuers Close Unused Credit Cards? CONTENT: How to Prevent Your Account From Being Closed\n---------------------------------------------\nIn most cases, when an issuer decides to close your credit card account, it's because the account hasn't been used in some time. While there is no solid guideline that dictates how often you should use your card, plan to use it at least a few times a year.\nTo get ahead of any activity-related closure, consider using each of your cards for a small, recurring payment and pay it off each month. Utilizing your credit cards to pay regular monthly bills, such as a streaming service or cellphone bill, can help keep them active.\nKeeping track of these occasional payments could be challenging if you have multiple cards that you don't use often. Here are a few tips to manage your accounts:\n*   **Make sure you're enrolled in autopay.** If you plan to use your cards for a recurring payment, you'll want to be sure you have autopay set up to cover at least your minimum payment so you're never late to pay. Your payment history is the most important aspect of your credit scores, and missing even one payment can cause your credit score to drop.\n*   **Pay the full balance to avoid interest.** Paying your balance in full every month will save you from paying interest charges. If you're only using your card occasionally to keep your account active, you don't want to end up paying interest just to do so.\n*   **Use a spreadsheet to manage multiple cards.** If you have more than one credit card and want to keep them all active, you'll want to use each one for at least one purchase every few months (preferably every month). Using a spreadsheet can help you manage this process and help you remember to pay all your bills on time. END
 TITLE: Can Issuers Close Unused Credit Cards? CONTENT: How Can I Check to See if My Accounts Have Been Closed?\n-------------------------------------------------------\nIf you're unsure if any of your accounts have been closed, get a free copy of your credit report so you can see which accounts are listed as open. Also consider signing up for free credit monitoring so you get notifications each time something changes in your credit reports. END
 TITLE: What Happens When Your Intro 0% APR Ends? CONTENT: Do Interest Rates Change After an Introductory Period?\n------------------------------------------------------\nIntroductory offers—as the name implies—are special terms offered to new cardholders and can last anywhere from six to 21 months. Once a card's introductory period is over, the standard interest rates that appear in your cardholder agreement are applied to the account.\nCards have several APRs, but there are two you'll want to pay close attention to as your intro period comes to an end: the interest rate for purchases and the interest rate for balance transfers. The introductory periods for new purchases and balance transfers can vary (some cards offer 0% APR for both new purchases and balance transfers, while some don't), and the ongoing rates charged once interest kicks in may also vary.\n*   **APRs for purchases**: This APR applies to the day-to-day purchases you make with the card. Once an introductory APR for purchases ends, the portion of your balance that comes from new purchases will be assigned a new APR and start to accrue interest at that rate. The specific rate you'll be charged will depend on your creditworthiness, and will be assigned when you're approved for your card.\n*   **APRs for balance transfers**: This APR applies to debt you transfer to the card from other credit cards. It can allow you to avoid paying interest for, say, six to 12 months, but may only apply to balance transfers made during the first few months you have the card. Once a promotional balance transfer APR expires, a new APR will be assigned to any remaining balance. That means if you transferred a total of $5,000 and paid off $3,000 during the introductory period, you will begin paying an assigned balance transfer interest rate on the remaining $2,000 once the intro period is over.\nWhile it's best to pay off your entire balance before the intro period ends—thus paying no interest on the transferred balances and any eligible purchases—that might not be possible. For that reason, it's important to keep track of your card balances, the date your promotional offer ends, and what APR(s) will apply to your balance at that time. END
 TITLE: What Happens When Your Intro 0% APR Ends? CONTENT: What Happens if I Have a Balance Left Over After the Intro Period?\n------------------------------------------------------------------\nMost people who apply for a 0% intro offer card do so to avoid the cost of paying interest on their debt. To save the most on interest, make it a goal to have your balance completely paid off before interest kicks in. You should be making at least your minimum payment during the promotional period to avoid late payments.\nIf you're approaching the end of your introductory period and still haven't paid off your balance, you might be wondering what you should do. Here are a few options you can consider:\n1.  Transfer the balance again. If you still owe a substantial amount and want to avoid paying interest on your balance, consider transferring your remaining debt to a new card (preferably another one with a 0% APR offer). To do this, you'll have to apply and be approved for another card with a special intro offer. If you get approved, doing this will enable you to continue paying down your balance with 0% interest.\n2.  Make a lump sum payment on the leftover balance before the intro period ends. If you really want to avoid paying interest, use your savings or any extra cash you may have to pay off the remaining balance before the intro period is over. This option will help you save money in the long run.\n3.  Leave the balance on the card and pay interest. If you don't want to apply for another card and can't pay the balance in full, you always have the option of leaving the balance on your card and paying the new interest as it accrues. With this option, consider paying as much as you can toward the debt each month so you pay less in interest over time. END
 TITLE: What Happens When Your Intro 0% APR Ends? CONTENT: Should I Keep My Card Open After Paying my Balance?\n---------------------------------------------------\nIf you applied for this card solely for the introductory offer, you may be considering closing it now that you've paid off your balance—but think twice before doing so. It's often wise to keep a credit card account open unless you can't afford the annual fee. Closing a card has the potential to hurt your credit score if it causes your credit utilization ratio to rise. If there's no fee associated with the card, you're usually better off leaving the card at home and just not using it.\nCheck to see if your card has additional perks or bonus features outside of the promotional APR. Some cards offer things like purchase protection, rewards, cash back, insurance on rental vehicles and more. If your card offers anything like this, keeping it around and using it on specific purchases can be a smart move. Be sure to consider all aspects of your card, in addition to the promotional period, when deciding whether to keep the card in your wallet. END
 TITLE: What Happens When Your Intro 0% APR Ends? CONTENT: Three Tips to Maximize Your 0% APR Card\n---------------------------------------\nIf you've recently applied for a credit card with a 0% promotional period, or you're considering it, here are three tips that can help you maximize the card's value. END
 TITLE: What Happens When Your Intro 0% APR Ends? CONTENT: Find the Right Card for Your Financial Goals\n--------------------------------------------\nIf you're planning to apply for a card with an introductory 0% APR, make sure to thoroughly research what's available so you can get one that works for your personal financial goals. You may prefer one with a reward earning potential, a long intro period or one that charges little or no fees. You can use Experian CreditMatch to get personalized credit offers.\nAs always, if you're thinking about applying for a new credit card, try to keep a close eye on credit reports and scores so you can understand what a lender will see when considering your application, and if anything changes before you submit your application. You can sign up for free credit monitoring through Experian. END
 TITLE: How the CARES Act Affects Credit Reports and Scores CONTENT: Credit Reporting and Scores Under the CARES Act\n-----------------------------------------------\nIn response to the unprecedented financial impact of the COVID-19 outbreak, many lenders have developed relief options that give consumers wiggle room if they are unable to make their regular payments. To protect consumers against being reported as delinquent if they utilize these options, the CARES Act calls for creditors to adjust how they report accounts that have been modified.\nThe law requires creditors to report any account that has a payment accommodation applied to it as current to the credit bureaus—as long as the account was current when the accommodation was made. Here are two scenarios you could experience under the CARES Act:\n*   If your **loan is considered current** (not past due) at the time you make an agreement with your creditor to modify repayment, the creditor needs to report to the credit bureaus that you are current on your loan.\n*   If your **loan is considered delinquent** (past due) when you make an agreement with your creditor, your status will continue to show as delinquent until you bring the account back into good standing. Once you bring the account current, the creditor must report your status as current to the credit bureaus.\nAccording to the new law, an \"accommodation\" could be an agreement to make partial payment, to put a loan in forbearance, to modify a loan or to offer any other relief.\nThe CARES Act protections require creditors to follow these guidelines for all agreements made between January 31, 2020, through either July 25, 2020 (120 days after March 27, 2020, when the law was enacted), or 120 days from the date the COVID-19 national emergency is declared over.\nIf you're unsure about your specific arrangement and want to know whether you're protected by these requirements, contact your lender and ask how they plan to report your information to credit bureaus. Make sure you document all your interactions by taking notes and screenshots and saving emails, so if your lender fails to follow through, you'll be prepared to dispute them. END
 TITLE: How the CARES Act Affects Credit Reports and Scores CONTENT: How to Protect Your Credit During the COVID-19 Crisis\n-----------------------------------------------------\nWhile maintaining your credit score is important, remember that credit can fluctuate, and if your scores are impacted now, they can still bounce back later. If your finances have been affected by COVID-19 and you're worried about your credit, here are a few tips that may help you protect your credit score:\n*   **Pay your bills on time if possible.** If you have the means, try to pay all of your bills on time to avoid having any delinquencies recorded in your credit reports. Unless you have a special arrangement with your creditor, late and missed payments may still get reported to credit bureaus. The best defense against letting that happen is doing what you can make payments on time, even if you're only making the minimum payment the lender requires.\n*   **Contact your creditors and service providers to see if they can help.** As mentioned, many lenders and service providers are providing relief to people impacted by COVID-19. If you fear you won't be able to pay a bill, contact your creditor or service provider immediately to see if there are any options that might help, such as loan forbearance. It's important to contact them before missing a payment, as some relief options may not work retroactively.  \n    If you take advantage of a relief option, the agreement you make with your creditor might include protections for your credit score. Make sure to discuss this with your creditor. For help with this, check out Experian's list of financial, non-financial and government institutions offering relief during this time.\n*   **Monitor your credit regularly.** Checking your credit can give you peace of mind and can help you see if your score has gone up or down. Remember that credit scores fluctuate often, so if your score drops, it could recover over time. Experian's free credit monitoring service allows you to check your Experian credit report and FICO® Score☉ regularly to see where you stand.\n*   **Seek financial assistance.** If you feel overwhelmed by the idea of budgeting and paying down your debt, consider contacting a credit counseling agency that can help you devise a plan to repay your debts. Nonprofit credit counselors can help you come up with a plan to manage your debts including. Contact the National Foundation for Credit Counseling to find a reputable counselor near you. END
 TITLE: How the CARES Act Affects Credit Reports and Scores CONTENT: Preparing for a Positive Financial Future\n-----------------------------------------\nWhile the current crisis may be putting a strain on your finances, know that credit scores fluctuate often, and nothing you do today will ruin your credit forever. Taking what steps you can now to manage payments, work with your creditors and seek additional help if you need it will help you prepare for a strong financial future. END
 TITLE: Should You Continue to Make Student Loan Payments During COVID-19? CONTENT: How Has Federal Student Loan Repayment Changed During COVID-19?\n---------------------------------------------------------------\nIn addition to the other economic aid provided by the CARES Act—including for unemployed workers and small businesses—the law outlined several ways that student loan repayment would temporarily be altered. Policy changes include:\n*   All payments for federal student loans will be suspended through September 30, 2021. This only includes direct loans and FFELs (Federal Family Education Loans) serviced by the federal government and does not apply to privately held loans.\n*   No interest will accrue on your federal student loans through September 30, 2021.\n*   All involuntary collection of student loan debt—through wage garnishment, Social Security garnishment and tax refund offsets—will be suspended.\n*   The federal government will report suspended payments as current to the national credit bureaus—which means skipped payments on eligible loans during this period won't appear as late on your credit report.\nThere's no need to apply for this assistance. If your student loans are eligible, the assistance will automatically be applied to your account and any scheduled payments should be paused by your loan servicer. If you are unsure whether your loans are eligible, contact your loan servicer for more information. END
 TITLE: Should You Continue to Make Student Loan Payments During COVID-19? CONTENT: Should I Stop Paying My Student Loans?\n--------------------------------------\nYour decision about whether to stop paying your student loans will ultimately depend on your financial situation. If you need the extra money now or are worried about your finances, this payment pause could offer welcome relief. But if you're financially stable and want to continue making your payments, doing so could save you money in the long run.\nTake inventory of your current finances and consider these options if you have federal student loans:\n1.  You're financially stable: If you don't envision needing any extra cash in the coming months, you could continue to pay your student loans as normal, which will help you save on interest charges once the no-interest period ends. But if you've got other debt, especially if it charges a higher interest rate than the normal rate on your loans, think about instead using this money to pay down those accounts.\n2.  You fear you may face financial hardship in the near future: Consider taking the money for your student loan payments and putting it aside. It's not clear when the economic impacts of this crisis will let up, so having this extra cash might come in handy should something happen in the future. Remember that you can choose to use this cash to pay down your student loans later on, should you not end up needing the money for other things.\n3.  You're currently facing financial hardship: If money's tight, you're better off using the funds you would have otherwise used for your student loans to pay for essential purchases like food, utilities and housing. You may not be making progress on your loans at this time, but at least you'll be better equipped to make sure you have what you need during this difficult time. END
 TITLE: Should You Continue to Make Student Loan Payments During COVID-19? CONTENT: What Are the Benefits of Continuing to Pay My Student Loans?\n------------------------------------------------------------\nIf you're in a position to continue making payments, you should consider doing so. In fact, with interest suspended on student loans, now is one of the best times to pay down your debt as all of your payment will be applied to your principal.\nIf you feel that you're financially stable enough to continue to pay your student loan bill, here are two ways you can tackle it:\n1.  Business as usual: You can continue to make monthly payments as you did before. While the payment will remain the same, remember that all of the money will go toward your principal as interest is not accruing at this time. The principal is the portion of the loan your interest payment is calculated on, so the lower that is, the less interest you will pay. Depending on the size of your loan and your interest rate, this could be a savings of thousands of dollars.\n2.  All at once: If you're even slightly concerned about your finances but want to take advantage of the 0% interest, put your student loan payment aside each month and pay it in one lump sum before the end of the suspended period. This will give you a pad of emergency money should your financial situation change before September.  \n    With this option, make sure you remember to make the lump-sum payment before September 30, 2021. Once your interest is reinstated, your interest payment will be determined based on your principal at the time—which will be the same as when the payments were suspended if you've held the payments to the side for that time.\nRegardless of which repayment option you choose, you'll need to contact your loan servicer to reschedule your payments, as this law automatically suspends scheduled automatic payments for qualified loan accounts. END
 TITLE: Should You Continue to Make Student Loan Payments During COVID-19? CONTENT: What Can I Do Instead of Paying Student Loans?\n----------------------------------------------\nIf you've decided you'd rather not pay your student loans during this period, here are a few smart things you could do with the money. Remember, if you're facing financial hardship, you should use this money for essential purchases as they come up.\n1.  Use it to pay down your high interest credit card debt. If you have a lot of credit card debt, this could be a good time to tackle it. Credit card debt is often charged a high interest rate, which means allocating this student loan money to pay your credit card bills could save you money. If you decide to do this, pick the card with the highest interest and begin to pay down that balance first. Then, move on to the account with the next-highest rate, and so on. Eliminating the highest interest debt first will help you save more money over time.\n2.  Create an emergency fund. If you don't already have one, consider taking this money and putting it in a savings account for a rainy day. Emergency funds are vital tools to help you plan for emergencies or anything that should go wrong in your budget.\n3.  Put your money in a high-yield savings account. If you plan on putting this extra money aside—or if you plan to create an emergency fund—consider using a high-yield savings account. These accounts pay a higher rate of interest of up to 2% annual percentage yield (APY) versus conventional savings accounts which may only yield a fraction of a percent annually.\nIf you're already struggling with your student loans, or would like more information about smart repayment strategies, check out these articles by Experian to learn more:\n*   How to Get Student Loan Relief During the COVID-19 Crisis\n*   3 Ways to Get Help With Student Loans\n*   What Is Student Loan Rehabilitation?\n*   How to Choose the Best Student Loan Repayment Plan for You\n*   Consolidating Student Loans: Should You Do It?\n*   What Is a Student Loan Grace Period? END
 TITLE: What to Know When Applying for a Business Loan CONTENT: If you're planning to apply for a business loan, there are a few things you should know. First, if you don't have substantial credit history as a business, or if you've never applied for business credit in the past, there is a chance you'll have to use your personal credit to guarantee a new loan. Some lenders—like the Small Business Administration (SBA)—require a personal guarantee for loans, which means you'll want to have your personal credit in order.\nIn addition to your personal credit, you'll also want to monitor your business credit regularly to make sure it's in good shape. It's recommended to use business credit when applying for a business loan, as long as you have sufficient credit history as a company. Doing this can help you build your business score, and also helps protect your personal score should your company ever have a financial mishap or vice versa.\nWhen applying for new lines of business credit, make sure to verify which score will be evaluated for the application. Consider checking both your scores on your own beforehand to get an idea of what lenders will see when considering your application. To check your personal report and scores, get a free copy of your reports and scores from Experian's consumer bureau. And to check your company's score, for a limited time you can [get a free copy of your business reports](;utm_medium=blog&utm_campaign=free-credit-report-smb) from Experian's commercial bureau. Remember that personal and business reports and scores are very different, so you will need to review them separately to see how each is doing.\nIf you think your personal credit may be used when applying for a business loan, make sure that your personal credit report does not have an active security freeze as this could delay the application and approval process. You can easily remove a security freeze online through Experian. If you've locked your credit file with Experian, be sure that your report is unlocked too. Remember to go back and freeze or lock your credit file again once you've applied for the loan, as this won't happen automatically. END
 TITLE: What to Know When Applying for a Business Loan CONTENT: Business Credit vs. Personal Credit\n-----------------------------------\nJust like personal credit scores, [business credit scores](;offercode=askexperian) may be used by lenders when deciding whether to issue a loan, line of credit or other debt. They take existing records of debt management and use complex formulas to determine what risk a person or business may pose as a borrower. Though personal and business credit scores are not calculated using the same algorithms, the fundamental logic behind how the scores calculated is pretty similar.\nCommercial credit bureaus collect and score the information used to populate business credit reports. There are three main bureaus that service business credit: Experian Commercial, Equifax Small Business and Dun & Bradstreet.\nThese bureaus collect data on millions of businesses from sources including creditors, public records, official state agencies, collection agencies, corporate financial filings and marketing databases. These reports are then used to assign a numeric score between 0 and 100, which creditors use to evaluate a company's creditworthiness.\nHere is an overview of the key differences between business and personal credit reports:\n*   Personal and business scores have different ranges. Business scores typically range from 0 to 100. Personal scores can range from 300 to 850.\n*   Business credit reports are associated with Employer Identification Numbers (EINs), while personal reports use Social Security numbers (SSNs).\n*   Your business credit report and monitoring services are managed separately from your personal credit report and monitoring, and through separate databases and departments at Experian.\n*   The data used for business and personal credit reports is regulated differently.\n*   Unlike personal credit reports, which can be placed on a security freeze or locked, business credit reports can never be frozen.\n*   Business scores can be checked by anyone (they will need to purchase the report and scores), while personal scores can only be checked by yourself and by others with your permission. END
 TITLE: What to Know When Applying for a Business Loan CONTENT: When Should I Use My Business Credit?\n-------------------------------------\nIn general, it's best to keep business credit and personal credit separate—using your [company's credit score](;offercode=askexperian) for business-related credit and vice versa. Using your business credit when appropriate will help you protect your personal credit from anything that happens at work and help your business build strong credit for the future.\nThere are some cases, however, when a business owner might have to use their personal credit for business-related borrowing. This could be the case if the business you own is a sole proprietorship. In these scenarios, if you don't already have an EIN, then you'll need to use your personal credit when applying for credit. END
 TITLE: What to Know When Applying for a Business Loan CONTENT: When Should I Use My Personal Credit?\n-------------------------------------\nYour personal credit score should be used when applying for credit that's unrelated to your business. Even if you have well-established business credit, you don't want to forget about your personal credit, as you may eventually need it for something in your everyday life.\nIf you don't yet have a [business credit score](;offercode=askexperian) or have never applied for credit through your company, you may find that you need to use your personal credit to obtain loans. If this is the case, make sure to communicate with the lender to confirm that it will report records of your account and payments to the business credit bureaus. Evidence of your company's account and payment history will help to jumpstart your business score, which you can later use when applying for other business-related credit. END
 TITLE: What to Know When Applying for a Business Loan CONTENT: Always Monitor Both Your Business and Personal Credit\n-----------------------------------------------------\nHaving good business credit can go a long way in helping your company grow. Whether you're looking for a business loan or want to start a relationship with a new vendor, a good business score can instill trust and help you negotiate and secure good credit terms.\nIf you own a company, it's important to maintain a separation between your business and personal credit profiles. Ideally, you want to monitor and maintain both scores so that you are prepared for credit related matters in both your work and personal life.\nSince business credit reports are held by a different set of credit bureaus, it's important to be extra vigilant when checking your credit. Make sure that when you pull and [monitor business credit](;offercode=askexperian), you're doing it with a credit bureau, like Experian, that services business accounts. Similarly, when checking your personal credit, remember it has nothing to do with your business credit report.\nIf you're not sure what your business score is, you can check with one of the three main credit bureaus that provide commercial scores. You can get a copy of your [business credit report](;link=5530) from Experian Commercial. END
 TITLE: How Do I File for Unemployment? CONTENT: Who Is Eligible for Unemployment Insurance?\n-------------------------------------------\nEligibility requirements differ by state, but generally you'll need to meet these three conditions in order to receive unemployment benefits:\n*   **You're unemployed by no fault of your own.** This means if your employer laid you off for financial reasons—like downsizing, closure or general lack of work—you could be eligible for unemployment benefits. Generally, if you quit or are fired from your job, you will not be eligible for benefits.\n*   **You were recently employed.** Your unemployment benefits are based on your past income, and to qualify, you'll need to have earned wages for a certain \"base period\" of time. For example, in many states, you'll need to have earned wages for around a year. If you've worked in multiple states, or earned wages for less than the required period of time, you may still be eligible under alternate programs offered by your state. Check with your state's unemployment office for full details on your wage eligibility.\n*   **You meet additional state requirements.** Some states will have additional criteria that you'll need to meet before you can be approved for unemployment benefits. Check with your state to find out if they have additional requirements for eligibility.\nIn addition to initially qualifying for benefits, most states require that you continue to file for benefits on a regular basis. That means you will have to file with the employment agency every one to two weeks, during which time you'll have to report any income you've earned and any job offers you've received. Most states require unemployment benefit recipients to prove they are actively searching for a new job, which may require a report outlining their job search efforts be submitted.\nAs part of the CARES Act, the list of eligible workers has been temporarily expanded to include people who would not usually be able to receive benefits. This new list makes the following workers eligible to receive unemployment benefits:\n*   Self-employed\n*   Independent contractors\n*   Furloughed workers\n*   Employees of religious institutions\n*   Workers and caregivers affected by the coronavirus END
 TITLE: How Do I File for Unemployment? CONTENT: Steps for Applying for Unemployment\n-----------------------------------\nIf you've lost your job and want to apply for unemployment, first contact your state's unemployment agency to see what information you'll need to provide. In most states, applications can be submitted online, over the phone and in person. Typically, you'll need to provide your Social Security number, contact information and details about your former employer.\nIt's recommended you apply for benefits as soon as you've lost your job. Many states have a mandatory waiting period of about a week during which you won't receive any benefits. This means if you wait to apply for unemployment, it could be several weeks before you receive your first benefits check.\nAfter submitting your application, the unemployment office will verify your past employment information and will calculate your benefits based on past earned wages. They may contact you during this period of time to submit additional information. END
 TITLE: How Do I File for Unemployment? CONTENT: How Long Can I Collect Unemployment?\n------------------------------------\nIn most states, people who are out of work can collect unemployment benefits for 26 weeks. Only a few exceptions exist, including Montana, which allows you to collect unemployment insurance for 28 weeks, and Idaho, Missouri, Arkansas, Alabama, Florida, South Carolina and North Carolina, which provide benefits for less than the national norm—some as briefly as 12 weeks. Check your state's unemployment office's website to see how many weeks of unemployment are available where you live.\nIn addition to the 26 weeks given by most states, the CARES Act extended this time period and made unemployed workers eligible for an extra 13 weeks of benefits. This extended timeline is intended to give unemployed Americans extra wiggle room as they continue to manage the impact of COVID-19. END
 TITLE: How Do I File for Unemployment? CONTENT: Does Unemployment Hurt Credit?\n------------------------------\nCollecting unemployment benefits does not impact your credit scores and will not be recorded in your credit reports. In fact, your history of receiving unemployment benefits is not a public record and can only be disclosed in certain situations.\nBeing unemployed, however, may mean a reduction in income, which can make it difficult to cover all of your debt payments. Late and missed payments can negatively impact credit scores, so it's important to do everything you can to pay your bills on time. If you think you may miss a payment, contact your creditors in advance and you may be eligible for certain relief programs.\nTo help those who have become unemployed or had their income reduced as a result of COVID-19, Experian has put together a list of resources that may be able to help during this time. END
 TITLE: How to Use Your Tax Refund During a Financial Crisis CONTENT: 1\\. Pay Urgent Expenses First\n-----------------------------\nIn times of need, certain expenses should come first. These include essentials such as food, medicine, housing and utilities. Once you ensure that you have enough money to cover your daily needs, consider using the rest of your funds to make sure you keep a roof over your head. Landlords and mortgage lenders may offer relief to consumers facing financial hardship, but if that's not the case in your situation, consider using your tax refund to maintain your living situation for the immediate future.\nIf you're experiencing financial hardship as a result of the COVID-19 pandemic, there are many potential relief options for you. Check out this list of financial and non-financial institutions that are offering financial relief during this time. END
 TITLE: How to Use Your Tax Refund During a Financial Crisis CONTENT: 2\\. Pay Your Credit Card Debt\n-----------------------------\nMaking your debt payments on time every month is important to your credit standing and to your financial stability. If you don't have a source of income or your income has been reduced, you can use your tax refund to make at least the minimum payments on all your accounts until your situation improves. (If you know you don't have enough money—even with your refund and any government stimulus money you've received—to pay your credit card bills, contact your creditors immediately to see how they may be able to assist you.)\nIf your situation allows, you may want to spend some of your refund to pay down high-interest credit card balances. This type of debt can be costly to hold over time, especially if you're only paying the minimum. Reducing your debt on credit cards that are costing you the most in interest can help you save money you can then use to cover your monthly expenses, add to your emergency fund or pay down other debt. Start with the card with the highest interest then, if you have enough left over, pay down the card with the second highest interest and so on. END
 TITLE: How to Use Your Tax Refund During a Financial Crisis CONTENT: 3\\. Start or Add to Your Emergency Fund\n---------------------------------------\nIf your income is stable for the moment but you're worried that could change, having cash reserves may make you feel more secure and prepared. An emergency fund is a savings account dedicated to covering your expenses when you find yourself short on cash.\nIf you don't already have a savings account dedicated to emergencies, consider using your tax refund to start one. If you already have emergency savings, consider using your return to add to it. While experts often advise keeping three to six months' worth of expenses in an emergency fund depending on your ability to fund it, even $500 to $1,000 is a good start. Once you're feeling more financially secure, consider making regular deposits into this account for future emergencies.\nNot sure where to deposit your emergency savings? Consider putting the money into a high-yield savings account so you can earn a little extra interest over time than you would with a standard bank savings account. High-yield saving accounts allow you to earn up to about 2% annual percentage yield (APY), compared with the average rate of around 0.05% APY earned at conventional banks. END
 TITLE: How to Use Your Tax Refund During a Financial Crisis CONTENT: 4\\. Consider Your Long-Term Financial Security\n----------------------------------------------\nIf you're lucky enough to escape the financial stresses of the current economic crisis, this is a good time to consider your financial future. Here are two actions you can take. END
 TITLE: How to Use Your Tax Refund During a Financial Crisis CONTENT: The Bottom Line\n---------------\nHow you spend your tax refund will depend greatly on your financial situation. During this unprecedented time, make sure you prioritize your own and your family's essential needs. Once you've covered those, use any leftover money to help you get through the coming months and, if possible, prepare for the future. END
 TITLE: Is Now the Time to Start Investing? CONTENT: Investing is a term used to describe the process of purchasing an asset that you believe will grow in value over time. Theoretically, that asset could be anything from a baseball card to a home to individual shares of a company (stocks).\nOne of the most common investment strategies is buying and selling securities (stocks, bonds, mutual funds, etc.). It works like this: An investor buys shares of a security (like a stock) and holds them until they decide to sell, by which time those shares have hopefully increased in value.\nFor now, let's focus on investing as it refers specifically to the buying and selling of stocks and funds. END
 TITLE: Is Now the Time to Start Investing? CONTENT: Investment Trends and COVID-19\n------------------------------\nThe stock market has periods of ups and downs. These fluctuations are commonly referred to as \"bull\" and \"bear\" markets. A bull market occurs when a market index (like the S&P 500) increases 20% or more over several months, and a bear market occurs when indexes decrease by at least that much.\nIn March, amid uncertainty surrounding the COVID-19 crisis, the Dow Jones Industrial Average—one of the major U.S. stock indexes—dropped over 20%, entering bear market territory for the first time in over a decade. This plunge caused a mixed reaction among investors around the world, with some ramping up their investments and others pulling back as they saw their portfolios drop in value.\nBut at a time when many Americans are turning away from investing, some are seeing an opportunity. According to a recent Experian survey of 1,000 people in the U.S., 14% of respondents with a household income of $100,000 to $150,000 said they planned to invest more in the stock market in the near future. Others planned to invest more in things other than stocks.\nSource: Experian 2020 survey data\nWhen it came to weighing risk after COVID-19, 1 in 3 consumers reported that they had no plans to change their investment risk level, according to the survey. Nearly everyone surveyed said they planned to make some type of investment once the pandemic was over.\nThese plans to invest—while more common among investors in higher income brackets—illustrate consumers' confidence that markets will recover. END
 TITLE: Is Now the Time to Start Investing? CONTENT: When to Start Investing\n-----------------------\nIt typically takes time to see a substantial (if any) return on investments—that's why starting early is so valuable. This commitment means you should be prepared for the money you invest to be tied up for some time. With that in mind, if you have limited savings, or are living paycheck to paycheck, investing might not be the best financial decision.\nIf you're wondering whether now is a good time to invest, answer the following questions to see if you're in the right place to get started.\n*   **Do you have enough money to cover essential expenses?** While it may go without saying, if you are struggling to cover essential expenses—or think you may be in the near future—now might not be the best time to start investing. Again, investing will tie up your money for some time, so you should make sure your essential needs are covered before you begin new financial endeavors.\n*   **Do you have an emergency fund?** Before you start investing, make sure you have a savings fund ready to cover emergencies. While you'll be able to access the money you've invested in the stock market at any time, doing so at an inopportune time—when the market has gone down since your initial investment, for example—can cause you to miss out on potential future earnings or even lose money. Emergency funds can be a lifesaver if you need quick cash to cover expenses. It's recommended to save three to six months' salary in your emergency fund.\n*   **Do you have debt?** While the value of your investment could grow over time, it may not grow at a rate that outpaces the interest you are paying on your debt. For example, if your financial portfolio grows at a rate of 10% annually but you have a high balance on a credit card debt with a 15% annual percentage rate (APR), you'd be better off paying down your debt. From an investment perspective, in the short term, paying down your debt would actually save you money.\nIf you feel comfortable with your finances, you should begin putting money aside in an investment account as soon as possible. As you do this, start formulating your investment strategy, and make a plan for how you'll get started. END
 TITLE: Is Now the Time to Start Investing? CONTENT: How to Start Investing\n----------------------\nAt one time, investing in the stock market meant working with a financial planner or stock broker. Now, online brokers, easy-to-use investment apps and company 401(k) plans simplify the process of investing.\nNo matter what platform you use to invest, you'll need to have a firm understanding of the different types of securities you can purchase. Here are some of the more common investments:\n*   **Stocks**: Individual stocks are essentially small ownership stakes in publicly traded companies. You can buy multiple shares of a stock, and as each share rises in value, your ownership stake increases in value (or decreases, if the stock value goes down). The objective with individual stocks is to buy low and sell high. The process of seeing a return can take time, but can also happen in a matter of minutes if a company's situation changes.\n*   **Bonds**: When you buy a bond, you're essentially giving a corporation or government agency a loan. In exchange, you'll earn interest on your bond investment. Bonds are typically issued for set periods of time, and you'll get your original investment back plus the interest that accrued over that time when you cash them in. Bonds are known to have lower rates of return, but are significantly less volatile than other investments.\n*   **Index and mutual funds**: These investment instruments pool money from multiple investors and use the collective funds to invest in different types of securities. Index funds are a type of mutual fund tied to popular stock indexes, like the S&P 500, meaning the underlying securities in these funds closely mirror those found in the index they track. Other mutual funds are compiled of various stocks, bonds and other securities that are selected by the fund manager. The advantage of index and mutual funds is they allow you to diversify your investments without having to purchase and manage the individual securities in your portfolio.\nOnce you've determined what type of securities you want to buy, start thinking about the tools you can use to manage your investments. The easiest and often smartest way to start investing is through your company's 401(k) plan, if it has one. Many companies match a portion of the funds you invest in your account to encourage saving for your retirement, adding to your investment at no cost to you. You'll be offered a variety of funds from which to choose; if you're not sure which to pick, you can usually contact the company's fund advisor for advice.\nIf you're funding your 401(k) or other retirement vehicle and are looking for additional investment opportunities, you have several options:\n*   **Online brokerage accounts**: These accounts give you total control over what you buy and sell and when. TD Ameritrade and E-Trade are examples of this type of investment vehicle.\n*   **Robo-advisor investing applications**: Companies such as Acorns and Robinhood offer automated investing solutions based on your financial situation and goals. They typically charge less than human financial advisors and tend to invest in index funds, making them a good choice for entry-level investors. Keep in mind that robo-advisors do not offer financial planning.\n*   **Traditional financial advisors**: An in-person financial advisor can not only offer you advice on where to put your investments, but can answer any questions you may have. You'll pay more for this personal touch—and may need a minimum amount to invest before they'll even take you on as a client—but financial advisors can offer you more in-depth financial advice and guidance than other options.\nEach of these options has its own advantages, and you should choose one that fits with your dedication to managing your portfolio and your level of experience. As always, if you feel uncertain about how to get started and what strategy you should use, contact a financial professional such as a certified financial planner for help. END
 TITLE: How to Protect Your Credit During a Recession CONTENT: How Does a Recession Impact Credit?\n-----------------------------------\nA credit score is an indicator of how you manage your financial obligations. And when things in your financial life change—for better or for worse—your credit score could fluctuate.\nThough recessions impact many aspects of the economy, one of the greatest risks consumers face is reduced income or unemployment. Losing your income could mean not being able to pay your monthly expenses—including your debt payments. Because payment history is the most important factor in calculating credit scores, if you fall behind on debt payments, your credit will likely suffer.\nA loss of income may also force you to take on more debt, which can hurt credit scores. Running up credit card balances to pay for expenses can increase your credit utilization ratio, which is the percentage of available credit you're using. Credit utilization is the second most important aspect of your credit scores.\nIt's best to keep your utilization ratio for each of your credit cards, and overall, under 30% to avoid hurting your credit scores—but the lower your utilization, the better.\nWhether or not your income is affected during a recession, it's still important to take action to protect your credit score in uncertain economic periods. Here are five ways to protect your credit during a recession. END
 TITLE: How to Protect Your Credit During a Recession CONTENT: 1\\. Monitor Your Credit\n-----------------------\nRegularly monitoring your credit is crucial to knowing if your scores drop and why. By reviewing your credit reports and credit scores often, you'll see how your credit is responding to changes in your financial life, if at all. This can help you understand what actions you may need to take, adjusting your finances where possible to move your credit to a better place.\nChecking your credit can also alert you to any inaccurate information in your reports. Mistakes, though rare, can happen when information is reported to the credit bureaus, and inaccuracies in your credit report could be pulling your credit scores down. If you find something in your report that you believe shouldn't be there, you can file a dispute with the credit bureau that maintains the report where the information appears. Keep in mind that accurate information cannot be removed from your credit reports.\nTo keep a closer eye on your credit reports and scores, consider using Experian's free credit monitoring tool for regular insight and alerts that tell you when something in your credit report has changed. END
 TITLE: How to Protect Your Credit During a Recession CONTENT: 2\\. Pay Off Existing Debt\n-------------------------\nIf you're fearful a recession could take a toll on your credit, try to pay down your existing debt sooner rather than later. Here's how:\n*   **Find ways to save money.** Cutting back on clothes purchases, making more meals at home instead of ordering takeout or canceling subscriptions you no longer use, for instance, can put extra cash in your pocket. Take any extra money you save and apply it toward your monthly debt balances.\n*   **Use the debt avalanche method.** Make minimum payments on all your credit cards except the one with the highest interest rate—then put as much as your budget will allow toward paying off that highest-interest card. Once it is paid off, use the same strategy with the card that has the next-highest interest rate and so on until all your cards are paid off.\n*   **Use the debt snowball method.** You use the same general approach here as with the debt avalanche method, except you put the most each month toward the card with the lowest balance. While you'll typically save more money using the debt avalanche approach, if quick wins and seeing accounts paid off is important to you, this could be a good strategy.\n*   **Get a balance transfer credit card.** While it might seem counterintuitive to pay off debt with another form of debt, managed the right way, a balance transfer card can help you save money and pay off debt more quickly than you might otherwise. Balance transfer cards often offer no-interest introductory periods during which you can transfer balances from other cards and pay them off without paying interest. As long as you pay off the transferred balance before the intro period ends (and the higher standard interest rate kicks in), you could save a significant amount of money in interest. When you're deciding if this is a good option for you, keep in mind that most balance transfer cards typically require good to excellent credit for approval and charge a 3% to 5% fee on transfers. Experian CreditMatch™ may help you find a balance transfer card to suit your needs. END
 TITLE: How to Protect Your Credit During a Recession CONTENT: 3\\. Build an Emergency Fund\n---------------------------\nIf you lose part or all of your income during a recession, you'll want to have a backup fund to tide you over until you find a new job. Emergency funds are dedicated savings accounts used to cover unexpected expenses. They can protect your credit by providing needed cash to pay your bills or help you avoid maxing out your credit cards.\nExperts recommend having at least three to six months' worth of living expenses in an emergency fund, but if you can save more, even better.\nIf you don't have an emergency fund, start to build one by setting aside however much you can afford each month. Even if you can only afford to save $100 per month, that's better than not having a fund at all. To ensure you save every month, set up automatic deposits so money is automatically transferred from your checking account to your emergency fund account.\nNot sure where to keep your emergency fund? You could open a savings account at the bank where you have a checking account, look for a high-yield savings account, or consider a money market account, certificate of deposit and other options. END
 TITLE: How to Protect Your Credit During a Recession CONTENT: 4\\. Contact Your Lenders\n------------------------\nBecause payment history is the most important aspect of your credit score, you should do everything you can to make sure you don't miss any debt payments. If you know you won't be able to afford your monthly bill, reach out to your creditors as early as possible to see if they have any relief options available.\nDuring an economic crisis, some lenders may offer options specifically designed for people struggling to pay bills, such as payment deferment, a lower interest rate, an adjusted repayment schedule or other help. This relief could bridge the gap until you're able to resume normal repayment. Taking advantage of these options first is your best bet when you know you can't pay on time and want to avoid getting a derogatory mark for missing a payment. END
 TITLE: How to Protect Your Credit During a Recession CONTENT: 5\\. Stick to a Budget\n---------------------\nThough it's always a good idea to maintain a responsible budget, this strategy is increasingly important during an economic downturn. Budgets help you allocate your income, portioning your funds in a way to help you save and spend efficiently.\nWhen a recession hits, having a budget in place will help you quickly adjust your spending should your income be reduced. Use your budget to figure out which expenditures you can live without and which you absolutely need. Revising your budget to cut out non-essential purchases and limit your spending to essentials can help you get through a difficult financial period.\nEven if your income isn't affected during a recession, following a budget will help ensure that you're living within your means. When your finances aren't overextended and you've created an emergency fund, you'll be in better shape should the economy begin to suffer. END
 TITLE: What Is Dollar Cost Averaging? CONTENT: How Does Stock Investing Work?\n------------------------------\nThe stock market is constantly in flux: The value of an individual stock or mutual fund can vary throughout the day, week, month and year. Stock prices are based on market demand, and a stock's price will change according to how many investors want to buy or sell that stock at a given time.\nTo use the stock market to build wealth, you'll need to buy an investment (shares in a given company or a mutual fund that invests in several companies) when the price is low and sell it later for a higher price.\nThis may seem easy enough, but it's often difficult to predict whether a stock or mutual fund will increase or decrease in value. Trying to time the market is challenging even for experienced investors, but for those with less experience, emotions can sometimes get in the way of making sound investment decisions. That's where dollar cost averaging can be especially helpful. END
 TITLE: What Is Dollar Cost Averaging? CONTENT: How Does Dollar Cost Averaging Help?\n------------------------------------\nDollar cost averaging spreads an investment in a stock or mutual fund over time instead of investing a lump sum all at once. The idea is that by spending a set dollar amount at a regular interval—say, every other week or once a month—your investment will be insulated from market swings and allow you to buy more shares when an investment's value is low and fewer when the value is higher.\nDollar cost averaging also helps remove the emotional aspect of investing. When it comes to your money, it's easy to react impulsively if you think a change will help you make more money or, alternatively, reduce your losses. By creating a set investment that occurs regardless of market conditions, you are effectively removing the emotional control you might have otherwise exerted—which could prove valuable over the long run. END
 TITLE: What Is Dollar Cost Averaging? CONTENT: How Does Dollar Cost Averaging Work?\n------------------------------------\nTo see dollar cost averaging at work, let's imagine you have $1,000 you want to invest in a certain stock. For this example, let's say the stock you're buying is called CRDIT.\n**Scenario 1 (Lump sum investment)**: In this scenario, you take your $1,000 and invest it all at once, buying 20 shares of CRDIT at $50 each. As long as you hold this stock, your purchase price for these shares will be $50. If the cost of a CRDIT share goes up to $51, your position will increase by $20. If CRDIT goes down to $48, your total position will decrease by $40.\n**Scenario 2 (Dollar cost averaging)**: In this example of dollar cost averaging, you take your $1,000 and split it into 10 portions of $100 that you plan to invest once a week. Each week at the same time, you buy $100 worth of CRDIT at whatever the price is that day. END
 TITLE: What Is Dollar Cost Averaging? CONTENT: Should I Consider Dollar Cost Averaging?\n----------------------------------------\nIf you want to invest in the stock market but want to limit your risk, dollar cost averaging is a strategy that could benefit you. Anyone can use a dollar cost averaging strategy—and you may already be doing so if you invest a set amount in your company's 401(k) plan every month. It is also often used by beginner investors or by investors looking to limit their exposure to market volatility.\nAs opposed to investing a large sum all at once, it reduces the chance you'll invest when a stock or fund is at a high point or miss out on an even lower price. It also allows you to work within your budget to find an amount you can afford to invest over time rather than trying to come up with one larger lump sum.\nFor help making investing decisions, consider contacting a financial professional to get input on your specific situation. Another way to mitigate your risk if you're not a professional investor is to invest in an index fund (which follows a given market index, such as the S&P 500) or mutual fund that invests in many different companies rather than choosing one stock for your investment. END
 TITLE: What Is Dollar Cost Averaging? CONTENT: How to Implement a Dollar Cost Averaging Strategy\n-------------------------------------------------\nCreating your own dollar cost averaging strategy is simple: Just take the amount you want to invest and divide it into equal portions to be invested over a period of time, or just decide on an amount to invest and set up a schedule (you don't have to have an end date if you don't want one). You can do this each week, each month or each payment period—whatever is best for you.\nOnce you set the intervals and establish the amount you plan to invest, make sure you set up an auto-transfer or direct deposit so you don't have to remember to do it manually each time. If you have a brokerage account, you can set up an auto-funding option at the interval of your choice.\nBe sure to use a spreadsheet or other method to track each of your contributions. This will help you be able to look back to see if this strategy worked over time. Track things like the purchase price for each share in each interval, the date of purchase and the number of shares purchased. END
 TITLE: What Is Dollar Cost Averaging? CONTENT: Investing Is Just One of Many Financial Strategies\n--------------------------------------------------\nRemember that investing is just one aspect of your overall financial strategy. Before investing, you'll want to make sure you have a steady income, ample savings and aren't struggling to manage your debt. If you have debt, it may be good to pay down debt before you start investing.\nThe one exception is investing in your retirement, which you should aim to do as early as possible, even if you can only set aside a small amount each month in the beginning.\nTo see a full picture of your debt and credit, get a free copy of your credit report and scores from Experian. END
 TITLE: How to Manage Payments if You’re Unemployed CONTENT: Know Your Rights\n----------------\nDepending on your circumstances, you may be eligible to receive unemployment benefits to help you get by until you can find work again. Federal unemployment benefits have been updated and expanded to help those who have lost work during the pandemic. States write their own benefit policies and application procedures, so you'll need to review the rules for your state—the U.S. Department of Labor has a helpful resource for doing this.\nYour lenders may be willing to work with you as well. If you think you may have difficulty making your bill payments as agreed, check to see what accommodations your creditors may agree to. The Consumer Financial Protection Bureau offers a list of resources and protections available due to the coronavirus; Experian also provides an extensive list of resources you can use.\nIn addition, those with federal student loans do not need to make payments and will pay no interest until at least September 30, 2021. And homeowners have the right to request mortgage forbearance if they're experiencing a financial hardship due to the pandemic. END
 TITLE: How to Manage Payments if You’re Unemployed CONTENT: Rework Your Budget\n------------------\nWhile there may be resources and exceptions made during tough times, it might help to act on the assumption that you may not have access to those. If you don't operate on a budget, now is the perfect time to create one to track your monthly expenses and get an understanding of where your money goes. You might be surprised to find that some of your spending isn't essential and that you can tighten it more than you realize.\nIf you do have a budget, take a close look and figure out what you can temporarily trim during this period of unemployment. You may need to pause discretionary spending, like buying clothes or getting restaurant delivery, until you have consistent income again. Think about any recurring expenses you can temporarily cancel, such as subscriptions, streaming services or your gym membership. END
 TITLE: How to Manage Payments if You’re Unemployed CONTENT: Don't Stop Paying Bills\n-----------------------\nWhile you may feel stretched thin during unemployment, try to continue paying every bill that you possibly can. Continue paying at least the minimum payment on your credit card while you're unemployed. If you pay your bills late, or miss payments altogether, it can wreak havoc on your credit score, and could cost you in late fees.\nIf it's not possible to pay everything on time, you may need to prioritize your payments by importance. Maybe this means ensuring your mortgage or rent is paid on time every month so you don't risk losing your housing, and prioritizing your car loan to ensure your car isn't at risk of repossession. You could pay the least important bills last, such as cable TV or your cellphone, since they pose the least risk to your finances if you pay late. With that said... END
 TITLE: How to Manage Payments if You’re Unemployed CONTENT: Reach Out to Your Lenders and Service Providers\n-----------------------------------------------\nIf you suspect you'll be late to pay a bill or won't be able to pay it at all, reach out to the lender or utility service in advance to let them know about your job loss. It's important to communicate with any business you pay regularly, including providers of loans and debts (car loans, credit card debts), utilities (cellphones, electricity) and insurance (car insurance, homeowners insurance).\nWhen you talk to your creditors, ask if there are any hardship options available for customers like you who are struggling to pay your bills due to unemployment. During some widespread crises, like natural disasters or the coronavirus pandemic, creditors often proactively offer more flexibility to impacted consumers. Sometimes these benefits aren't distributed automatically, and you must call your providers to find out if they can offer any temporary help.\nEven if you think you will be able to pay your bills on time, but will be cutting it close, it might still be worth inquiring about flexibility to give your budget more wiggle room. You may be able to negotiate for assistance such as delayed bill due dates, lower payments or loan forbearance, which gives you temporary relief from paying the loan if you're falling behind. Make sure you understand the specifics of the agreement, such as if you'll still be charged interest or your term will be extended, and get it in writing. END
 TITLE: How to Manage Payments if You’re Unemployed CONTENT: Consider Debt Consolidation or a Credit Counselor\n-------------------------------------------------\nIf you're struggling to manage your debts during unemployment, one possible solution is to consolidate your debt. This is when you consolidate multiple debts (usually credit card debts) into one lower-interest form of debt, such as doing a balance transfer to a 0% APR credit card or a personal loan with a lower interest rate.\nIf that's not enough relief, you may want to seek the help of a nonprofit credit counselor. The National Foundation for Credit Counseling is a nonprofit organization that can connect you with an expert you can trust. Your counselor can work with your creditors and help you make a debt management plan (DMP) to get your finances under control. They can also help you make an emergency budget and a financial action plan.\nAccounts included in a DMP a credit counselor creates for you will include a statement that they are being repaid through credit counseling; this statement will not negatively affect your credit score. However, if repayment of the debt for less than originally agreed was negotiated as part of the DMP, the account payment status may be reported as \"settled.\" A settled account is considered negative and will hurt credit scores. For-profit debt settlement firms may offer to negotiate settlements with your creditors as well; however, they can be risky and expensive. Before agreeing to such a plan, make sure you understand the costs and consequences. END
 TITLE: How to Manage Payments if You’re Unemployed CONTENT: Boost Your Income\n-----------------\nIf you've taken some of these measures and are still worried about making ends meet, consider finding other ways to obtain income during this time. For example, many grocery stores and in-demand retailers such as Amazon and Walmart may be hiring. Gig economy jobs have also proven lucrative for some.\nConsider looking for online work, such as becoming a virtual assistant or doing freelance administrative work including transcription, research or data entry. Here are a few websites to begin your search with:\n*   **Upwork**: This platform is popular with businesses and entrepreneurs looking to hire a variety of professionals for freelance gigs.\n*   **FlexJobs**: FlexJobs is a subscription service that can connect you with remote jobs (full-time and part-time).\n*   **Fiverr**: Fiverr specializes in what are called \"micro-gigs\" that can be done quickly, such as writing a few posts for a client's social media page.\n*   **Indeed**: While many jobseekers may be familiar with Indeed for its traditional job postings, the website can also be used to find freelance opportunities.\nDealing with unemployment and the resulting financial hardship is incredibly stressful and scary, but take a deep breath and know there are numerous resources to help you navigate and survive this tough time. END
 TITLE: How to Decide Whether a Mortgage Refinance Is a Good Idea CONTENT: Why Would You Want to Refinance?\n--------------------------------\nBefore you pull the trigger on refinancing, think about why you want to do it. There are many reasons to refinance, including to reduce your monthly payment or to get a cash infusion, but it's important to make sure it's worth the time, paperwork and potential cost.\nThe following are some of the most popular reasons people refinance:\n*   To lower their interest rate\n*   To shorten the life of their loan\n*   To obtain cash with a cash-out refinance\nRefinancing can help you achieve these goals and ultimately give you more options when it comes to your finances. Think about your situation and needs, and do your research to determine if refinancing your mortgage is the best option on the table. END
 TITLE: How to Decide Whether a Mortgage Refinance Is a Good Idea CONTENT: Is Now the Best Time to Get a New Interest Rate?\n------------------------------------------------\nMany people are attracted to refinancing because of the potential savings that come with a lower interest rate. But for those savings to actually occur, the interest rate on your new loan will have to be lower than the rate on your existing mortgage by enough to at least offset refinancing fees.\nMortgage rates are set by lenders, but they can be affected when the Federal Reserve changes its benchmark interest rate. When the Fed lowers rates, mortgage lenders may in turn lower their rate. Similarly, when the Fed increases rates, mortgage rates can go up.\nThough changes to the Fed rate have stimulated mortgage rate fluctuations in the past, it's not guaranteed that one will lead to the next. Ultimately, it's possible the new rates lenders begin to offer will be lower than the one you have on your current loan. When you see that lenders are offering lower rates—whether because of a Fed rate change or something else—that could indicate that refinancing could be a good move.\nTo see if lenders are currently offering low interest rates, you can do research online or contact a mortgage broker. You can also call your bank to see if they can give you an idea of what interest rates they are offering for refinancing loans.\nTo illustrate the potential savings you might see by refinancing, let's imagine you refinance your 30-year mortgage after 15 years of repayment and an outstanding balance of $100,000. Your previous loan had an APR of 4%, and by refinancing you're able to drop your APR to 3.5%.\nIf you continued to pay for the next 15 years at 4% APR, you would end up paying roughly $33,000 in interest over that time. By lowering your APR to 3.5%, the total paid in interest would be around $28,000—a savings of $5,000. Just keep in mind you'll need to take loan fees into account to determine your net savings. END
 TITLE: How to Decide Whether a Mortgage Refinance Is a Good Idea CONTENT: How Will You Know if Refinancing Is Worth It?\n---------------------------------------------\nSince refinancing can change your overall cost or how long it takes to repay your loan, you need to understand exactly what your mortgage will look like once the process is done.\n*   If it's money savings you're after, find out how long it'll take you to break even on your refinancing fees (closing costs) that could cost 2% to 6% of the loan amount.\n*   If you're refinancing to reduce the repayment term, calculate how much your new monthly payment will be and how long you'll be paying it.\n*   If you're doing a cash-out refinance so you can make a purchase or pay off debt, do the math to see if a refinance makes more sense than the alternatives such a credit card or debt consolidation loan.\nTaking the time to determine your costs or savings will help you see if refinancing is worth it. When you lay it all out, you may ultimately find that a refinance isn't worth the effort. END
 TITLE: How to Decide Whether a Mortgage Refinance Is a Good Idea CONTENT: How to Get Cash With a Refinance\n--------------------------------\nIf you need cash for other purchases or to pay down other debts, you may be considering a cash-out refinance. With this, you take out a loan that's larger than your current mortgage, and use the cash you have left over after paying off your existing home loan to handle your financial needs.\nA cash-out refinance could cause your monthly payment to increase, so this option is really only advised for people who need this option to get some fast cash. END
 TITLE: How to Decide Whether a Mortgage Refinance Is a Good Idea CONTENT: Should You Refinance if You're Moving Soon?\n-------------------------------------------\nIf you have plans to sell your home relatively soon, think twice before refinancing. Due to the fees associated with processing a mortgage, you should do the math to figure out how long you'll need to pay down your new mortgage before you sell. Selling your house before you've broken even on loan fees can neutralize your savings.\nIf you plan on getting a mortgage on a new home, you can use that opportunity to negotiate better interest rates and terms on your new loan. Refinancing right before you sell a house may only result in extra costs with few benefits. END
 TITLE: How to Decide Whether a Mortgage Refinance Is a Good Idea CONTENT: When Should You Stick With Your Current Mortgage?\n-------------------------------------------------\nIf you've considered the factors above and don't immediately see a benefit to refinancing, you should most likely stick with your current mortgage. Again, refinancing is not something you should do just for the sake of doing it. You should be able to clearly see the benefit—whether it's monetary savings, a reduced repayment period or something else. END
 TITLE: How to Decide Whether a Mortgage Refinance Is a Good Idea CONTENT: Check Your Credit Before Refinancing\n------------------------------------\nNo matter what your reason for refinancing, you should check your credit reports and scores before applying. Lenders will base your interest rate, in part, on your creditworthiness, and making sure your credit is in a good place could help you lock in a low rate.\nHaving a good credit history and score could give you extra leverage when negotiating with lenders, ultimately helping you get the best terms for your new loan. If you'd like to check your credit, consider getting a free copy of your credit report and FICO® Score☉ from Experian to see what lenders might consider when evaluating you for a loan. END
 TITLE: How a Good Credit Score Could Help You Save on Home Improvement Costs CONTENT: Identify Your Home Improvement Needs\n------------------------------------\nWhen it comes to making improvements on your home, it's easy to stray down the path of \"fun\" projects: adding a fire pit in the backyard or knocking out a kitchen wall to accommodate a wine refrigerator, for example. Investing in these projects isn't always the best financial decision, however. If you have existing or growing damage that needs your attention—a roof that no longer holds water or a patio structure weakened by termite damage, for instance—you should give these projects priority to prevent further problems down the road. Once you have those out of the way, you can move on to more fun vanity projects.\nWhen you decide which home improvement projects to tackle, figure out how much it's all going to cost by getting contractor quotes and researching material costs. Line up these costs next to your budget to see if you'll have enough cash to cover the new expenses. If it looks like you'll need to rely on credit to pay for your project, your next step is to ensure you get low interest rates and good terms on your loan. That's where a good credit score comes in. END
 TITLE: How a Good Credit Score Could Help You Save on Home Improvement Costs CONTENT: Why a Good Credit Score Matters\n-------------------------------\nHaving a good credit score—a score of 680 or above, according to the FICO credit scoring model—will help you get lower interest rates on a loan. That means you'll pay less over time to borrow the funds for your home improvement project. A good credit score may also help you find a lender who has lower or fewer fees. END
 TITLE: How a Good Credit Score Could Help You Save on Home Improvement Costs CONTENT: Types of Loans for Home Improvement Projects\n--------------------------------------------\nIf you have a good credit score and are considering taking out a loan for a home improvement project, you'll probably have several borrowing options:\n*   **0% APR credit card**: If you have good enough credit, you could get approved for a credit card with an introductory 0% annual percentage rate (APR) offer on new purchases. This will allow you to make purchases and pay no interest for a set period of time. Depending on how much you spend with the card, this savings could be considerable. Read the fine print, though, as the terms and conditions can vary depending on the offer. Make sure the 0% APR includes new purchases, for example, and not just transfers.\n*   **Personal loan**: A good credit score could also make you eligible for a lower interest rate on a personal loan. Personal loans can be used for home improvement costs, and you may even find some personal loans marketed as home improvement loans. Unlike a credit card, which is a type of revolving debt, a personal loan is a type of installment debt, meaning you'll be issued lump sum you'll pay back in fixed installments over a set period of time.\n*   **Home equity line of credit (HELOC)**: A HELOC allows you to borrow against the equity you have in your home. A HELOC typically allows you to borrow up to 85% of your equity, so if you have $100,000 of equity in your home, you may get a credit line for up to $85,000 if approved. HELOCs are convenient for home improvement projects as they give you a line of credit that you can use as you wish, similar to a credit card. This allows you to spend as little as you want, lowering the amount of interest you have to pay back. Lenders typically want to see a score of 680 or better to approve you for a HELOC.\nHow to Improve Your Credit Score\n--------------------------------\nTo get approved for a loan with the best possible interest rate and terms, take time to get your credit score in good shape if it isn't already. Here are a few tips on how to get your credit where it needs to be and keep it there:\n*   Make all your debt payments on time. Payment history is the most important factor in your credit score, so paying on time is crucial to maintaining a good score.\n*   Check your credit reports and dispute any inaccurate information.\n*   Make sure you're not using more than 30% of your available revolving credit.\n*   Don't apply for a lot of credit in a short period of time.\nOnce you're approved for a loan and are getting ready to start your home improvement project, update your monthly budget to include your new loan payments and stick to it. To keep your credit score in good standing, avoid making any late payments.\nIf you don't know where your credit stands, consider getting a free copy of your credit reports and scores from Experian to see what's in your credit file. And if you're considering applying for a credit card or personal loan to finance your home improvement this year, check out Experian's CreditMatchTM marketplace, which can pair you with specialized credit offers based on your credit profile. END
 TITLE: How a Good Credit Score Could Help You Save on Home Improvement Costs CONTENT: How to Improve Your Credit Score\n--------------------------------\nTo get approved for a loan with the best possible interest rate and terms, take time to get your credit score in good shape if it isn't already. Here are a few tips on how to get your credit where it needs to be and keep it there:\n*   Make all your debt payments on time. Payment history is the most important factor in your credit score, so paying on time is crucial to maintaining a good score.\n*   Check your credit reports and dispute any inaccurate information.\n*   Make sure you're not using more than 30% of your available revolving credit.\n*   Don't apply for a lot of credit in a short period of time.\nOnce you're approved for a loan and are getting ready to start your home improvement project, update your monthly budget to include your new loan payments and stick to it. To keep your credit score in good standing, avoid making any late payments.\nIf you don't know where your credit stands, consider getting a free copy of your credit reports and scores from Experian to see what's in your credit file. And if you're considering applying for a credit card or personal loan to finance your home improvement this year, check out Experian's CreditMatchTM marketplace, which can pair you with specialized credit offers based on your credit profile. END
 TITLE: What to Do When You Max Out Your Credit Cards CONTENT: Create a Spending Plan\n----------------------\nMuch like you do when you create a budget, you need to take inventory of all the things you spend money on to figure out why your credit card debt has reached its limit. If you've recently had a financial or personal emergency, the costs associated with it could be substantial and may be part of why you've spent so much on your cards. In other cases, you may be making purchases, like eating out at expensive restaurants often or buying plane tickets, that you simply can't afford on your monthly income. Once you look closely at your credit card spending, see where you can make spending cuts. Reducing or eliminating unnecessary spending is essential to paying down your credit card debt.\nIf you haven't already, create a monthly budget that gives you a clear picture of how much money you bring in every month; how much you pay toward fixed expenses such as rent, utilities, car payment and the like; and how much you have left for discretionary spending. This will help you determine how much you can put toward your credit card debt and will encourage you to make responsible financial decisions to keep your spending within your means. END
 TITLE: What to Do When You Max Out Your Credit Cards CONTENT: Avoid New Debt\n--------------\nIf you're stuck with maxed-out credit cards, this is a good time to lie low and not apply for new credit until you get a handle on your current debt. Not only would a new lender see that you have a high credit utilization rate on your revolving credit lines, but your credit score likely experienced a dip due to the maxed-out cards, making it trickier to get approved for new credit. Credit utilization is a major factor in calculating your credit scores, and when your balances get closer to your credit limits on revolving lines of credit, your utilization ratio, or percentage of available credit you're using, can increase dramatically—ultimately bringing your credit score down.\nThe only exception to avoiding new debt is consolidating your existing balances to help you save money and get ahead of your credit card debt. A debt consolidation loan could help you save money on interest over time and help you streamline repayment if you have multiple cards that are maxed out. This method could backfire if you consolidate debt but continue to spend on your freed-up credit card lines, however. So be sure to halt all credit-based spending if you can while you're in the process of getting a handle on your debt. END
 TITLE: What to Do When You Max Out Your Credit Cards CONTENT: Look for Extra Income\n---------------------\nIf you've maxed out your credit cards, it's safe to assume you're spending more than you have in available discretionary cash. To bring in more income each month, consider finding a side hustle or something you can do in your spare time. Or consider looking for a new job that will pay you more.\nWhether you take on a part-time job, work overtime at your main job or sell some of your extra belongings, having extra income each month will allow you to put more toward your outstanding debt. Use as much of the extra income you have each month to pay down your credit card debt. The interest on credit card debt can be a killer, making it difficult to pay down your balances, so it is important to reduce it as quickly as possible. END
 TITLE: What to Do When You Max Out Your Credit Cards CONTENT: Set Up a Repayment Plan\n-----------------------\nCreating a repayment plan is an essential step in getting rid of your credit card debt. If you've made a general budget, you should have an idea of how much you can afford to pay toward your debt each month. Once you have that figure, use it to determine how much you will pay toward each card (if you have multiple credit cards with balances) each month.\nTwo popular methods of attacking credit card debt are the debt avalanche approach and the debt snowball approach. In the debt avalanche approach, you'll focus on paying back the credit card debt with the highest annual percentage rate (APR) first, which will save you money on interest payments over time. With the debt snowball approach, you'll make minimum payments on all your cards every month and put any extra money you have toward the credit card with the lowest balance. This will help you reduce the number of cards with balances faster, and once you pay off each card, you can apply the amount you were paying to the other cards. END
 TITLE: What to Do When You Max Out Your Credit Cards CONTENT: Consider Credit Counseling\n--------------------------\nIf you're having trouble planning your repayment on your own, consider finding a credit counselor to help you craft a plan. A credit counselor is someone who will help you plan your repayment and help you stay accountable for following through. Your credit counselor may recommend a debt management plan, a more formalized debt payment strategy which can be a helpful alternative to tackle mounting debt. END
 TITLE: What to Do When You Max Out Your Credit Cards CONTENT: Rebuild Your Credit\n-------------------\nWhether this is the first time you've maxed out your credit cards or it's a common occurrence, you may notice your credit scores fluctuate along with your periods of heavy debt.\nIf your credit has suffered from maxing out your credit cards, it's a good idea to work toward rebuilding it so you don't have to deal with a poor credit score in the future. Here are a few tips on how to approach rebuilding your credit:\n*   **Find out where your credit stands.** You can get a free copy of your credit reports and FICO® Score☉ from Experian so you know exactly what is in your credit file.\n*   **Pay all your bills on time.** Maxed-out cards also often come with missed or late payments, as some people who are heavily reliant on credit might also have cash flow problems. Payment history is the most important factor in calculating your credit score, so paying your bills on time is a crucial step to improving your credit. Consider using bill pay to ensure you don't miss any payments.\n*   **Keep your credit utilization low.** As mentioned above, maxing out credit cards will spike your overall credit utilization ratio, one of the most important factors credit scoring models use to calculate your credit score. If you maxed out your credit cards, your credit utilization ratio would be 100%—more than three times the recommended ratio of under 30%. Keep paying down your credit card debt so you can lower your credit utilization ratio.\n*   **Check out Experian Boost™† .** This tool can help you increase your FICO® Score instantly by giving you credit for utility and telecom payments that you are already making.\nThe process of paying down your credit card debt and improving your credit takes time, so be patient and stick with your plan. But the money you'll save and the boost to your credit will be worth it. END
 TITLE: Is There a Hard Pull on My Credit When I Apply for a Credit Card? CONTENT: How a Credit Card Application Can Impact Your Credit\n----------------------------------------------------\nA hard inquiry is a record showing someone has checked your credit report—with your permission—to evaluate you for some type of credit application. This happens whenever you apply for a new credit card.\nDepending on how developed your credit history is, a single hard inquiry may have little to no impact on your credit scores. This is not as true for people who have poor credit or less in their credit file: These consumers may see a slight drop in their scores as a result of the hard pull.\nIf you have multiple hard inquiries in a short period of time, this could have a greater impact on your credit scores than if you have just one. Lenders may view this as a sign that you're seeking a significant amount of credit, which could indicate that you are having financial troubles and are at risk of overspending. And for consumers with little credit history, multiple applications represent an even greater risk.\nThere are, however, some situations where an inquiry or group of inquiries do not affect your credit scores. The first is a soft inquiry, or soft pull, which is recorded in your credit file whenever you check your own credit report or when a lender checks your score to preapprove you for an offer. If you've received credit card preapprovals in the mail, these are typically the result of a soft inquiry. Soft pulls do not affect your scores.\nAdditionally, multiple hard inquiries that occur when you are rate shopping, say for an auto loan or mortgage, are typically counted as just one if the applications are submitted within a certain period of time, usually about two weeks but sometimes up to 45 days. These don't hurt your credit because credit scoring models such as FICO consider interest rate shopping to be a good practice when taking on new credit. END
 TITLE: Is There a Hard Pull on My Credit When I Apply for a Credit Card? CONTENT: How Long Do Hard Inquiries Stay on Your Credit Report?\n------------------------------------------------------\nOnce a hard inquiry is recorded, it will remain a part of your credit history for two years. The effect the hard inquiry has on your credit reports, however, will typically disappear after about 12 months. END
 TITLE: Is There a Hard Pull on My Credit When I Apply for a Credit Card? CONTENT: How to Minimize the Impact of Hard Inquiries\n--------------------------------------------\nIf you have good credit and a history of on-time payments, an occasional inquiry as a result of a credit application will have a negligible effect on your credit scores. It's when you begin to apply for multiple credit products in a short period of time that you may see a significant dip in your scores (with the exception of rate shopping, as noted above).\nTo limit the impact these hard inquiries have on your scores, consider only applying for new lines of credit, including credit cards, when you really need them. To avoid bunching multiple hard inquiries for different types of credit products in a short period of time, wait for six months to a year between credit applications to lessen the potential impact on your credit.\nIf your scores are low and you want to see them improve, avoiding hard inquiries is important. Focus on making all your payments on time, and if you have any debt, try your best to pay it down as much as possible.\nTo find out more about whether you currently have any hard inquiries listed in your credit reports, consider getting your free Experian credit reports and scores to see what's in your credit file. END
 TITLE: What to Do Once You Pay Off Your Car CONTENT: Check Your Credit Report\n------------------------\nIt may seem counterintuitive, but credit scores can sometimes decrease when you pay off a loan. Checking your credit reports will give you an idea of what's going on with your scores, and will also give you the chance to make sure all your car loan information is accurate.\nIf your credit scores went down as a result of paying off the loan, it may have happened for a couple reasons:\n*   **It was your only account with a low balance.** If all of your other credit accounts carry high balances, paying off your car loan could negatively impact your scores.\n*   **It was your only installment account.** Credit mix is a factor in your credit scores, and if you paid off your only installment loan when you paid off your car, this could cause your scores to drop.\nThere are many other reasons (unrelated to paying off your car) your score could have gone down, and checking your credit reports should help you understand why. You can get a free credit report from Experian to see what's in your file. END
 TITLE: What to Do Once You Pay Off Your Car CONTENT: Get Your Car Title\n------------------\nYou just paid off your car and own it outright—now get the paperwork that says so. Your car title is a piece of paper that lists the official owner and any lien holders on your car. Depending on what state you live in, you may already have a title with your name on it. If you do, you live in what's called a non-title-holding state, which means that your state's Department of Motor Vehicles issues the title to the vehicle owner and not the lien holder. In this scenario the lien holder is listed on the title, but is not the primary name.\nIf you live in one of these states and just finished paying your car loan, you'll want to remove the lien holder from your title. This can be done by contacting your state's DMV.\nIf you live in a title-holding state, that means that the lien holder—the lender that financed your loan—will hold the title and it will only be released when the lien has been fully satisfied. Once you've paid off your loan, your lien should be satisfied and the lien holder should send you the title or a release document in a reasonable amount of time.\nOnce you receive either of these documents, follow your state's protocol for transferring the title to your name. This will allow you to show ownership and sell the car in the future, so get all this paperwork in order as soon as possible. END
 TITLE: What to Do Once You Pay Off Your Car CONTENT: Look Into Different Insurance Coverage Options\n----------------------------------------------\nOne advantage of paying off your car loan is that you may be able to get a better rate on your car insurance. First, notify your insurance company that you've paid off the loan so they can remove the other lien holder (lender) from your policy.\nLenders often require that you carry a minimum level of insurance so that if any damage were to occur, their collateral and investment (the car) would be sufficiently protected. Once your car is paid in full, there are no longer lien holders and you may be able to contact your insurance company to see if it can reduce your coverage or offer you a better rate. END
 TITLE: What to Do Once You Pay Off Your Car CONTENT: Consider Saving the Extra Funds\n-------------------------------\nAnother benefit of paying off your loan is that now you can use the money you put toward your car payment for other things. This is a great opportunity to save or invest, as you've already proven you can function without the extra cash.\nOf course, how you use this money will depend on your financial situation: You may have other debt you want to pay off or need to use the extra money for other necessities. If you can afford to save this money each month, however, you could use it to build up general savings, put more toward your 401(k) retirement plan, add the extra funds to your child's college savings plan, pay more principal on your mortgage each month or set aside the extra funds for a vacation.\nYou might also consider investing the extra money in securities, such as stocks and bonds, that may offer higher yields than a savings account over time. You could invest in a Roth IRA or a traditional IRA if you want to increase your retirement savings; work with a financial advisor or \"robo-advisor\" (digital financial advisor); or purchase your own stocks, bonds or mutual funds through a brokerage account. See \"How to Start Investing\" for more information.\nNo matter whether you begin to save, invest or utilize the extra money for something else, you can have peace of mind that you successfully paid off your loan and are now the sole owner of your vehicle. END
 TITLE: What Is Compound Interest? CONTENT: What Does \"Compound Interest\" Mean?\n-----------------------------------\nCompound interest, or compounding interest, is essentially interest earned on other interest. Each time you add interest to a principal amount, whether on an investment or a loan, that interest—plus the principal—will earn more interest during the next period.\nThe tricky thing about compounding interest is that it can be both good and bad. It's great when interest compounds on an investment and allows your initial contribution to grow more quickly. But when compounding interest is added to a loan or credit card debt, it's not so great because that's now extra money you have to pay back. END
 TITLE: What Is Compound Interest? CONTENT: What Is the Difference Between Simple and Compound Interest?\n------------------------------------------------------------\nSimple interest and compound interest are earned in different ways. Simple interest is the base interest you earn or accrue on the principal amount you invest or borrow, and it does not compound. It's rarely used in investments and loans. Here's an example:\n*   Imagine you invest $100 and earn 5% interest on your investment in one year. The interest earned in this scenario would be $5. This $5 is an example of simple interest.\nCompound interest is the extra interest you earn on the simple interest that you've already earned. Here is a continuation of the example above:\n*   Once you add your simple interest ($5) to your principal ($100), you end up with $105. And then let's assume over the next year, you earn another 5% interest—but now it's on your $105, which would net you an extra $5.25 in that year. The extra interest earned ($.25) is the compound interest. END
 TITLE: What Is Compound Interest? CONTENT: How Do You Calculate Compound Interest?\n---------------------------------------\nTo calculate compound interest, you need to know a few things:\n2.  **What is the total principal that will earn interest?** In the scenario above, this is $100.\n3.  **What is your interest rate?** In the example above, the annual percentage rate is 5%.\n4.  **How often does your interest compound?** Compounding can happen once a month or once a year, and knowing how often it happens is key to calculating your compound interest. In the scenario above, it is once a year.\n5.  **How long will your interest be compounding?** This figure represents the number of months or years that you plan to allow interest to compound and grow. This time period may change, based on whether you adjust the term of your loan or whether you decide to hold an investment for a different length of time.\nOnce you have answers to all the questions above, you'll be able to calculate compound interest for your situation. You can follow the calculation model used above, but in situations where your interest compounds each month rather than annually, you'll have to adjust to account for that.\nHere is an example formula you can use to find out how much your interest will compound over a period of time with different compound rates:\nHere is what the components of this equation stand for:\n*   A = The amount of money you will have after a certain number of years\n*   P = How much you first invested or owed\n*   r = Interest rate expressed as a decimal\n*   n = The number of times your interest compounds each year\n*   t = The number of years the money grows\nWhile this formula may seem complicated, manually accounting for how often your interest compounds and how long it will accumulate would involve you stringing together many smaller equations to get the same answer. For a reliable compound interest calculator, check out this tool. END
 TITLE: What Is Compound Interest? CONTENT: Can Your Credit Be Affected by Compound Interest?\n-------------------------------------------------\nCompound interest does not directly affect your credit scores. However, missing a bill payment or paying late does. If you have a lot of revolving credit card debt, compounding interest could catch you by surprise and over time make your bill larger than you expected. And if this causes you to pay your bill late, your credit scores could be impacted.\nInterest will only begin to compound on an account when you're not paying a sufficient amount to both the interest and principal each month. This could easily happen if you pay just the minimum on your credit cards each month. That's why you should always attempt to pay off your balance in full each month. Doing so prevents any interest from accruing.\nYour credit scores are also influenced by your credit utilization ratio, which is calculated by dividing your total revolving credit balances by the total of all your credit limits. If you're consistently paying just the minimum each month and using a lot of your available credit, your credit utilization ratio is likely high, which can negatively affect your credit scores.\nTo find out more about your credit card balances, and to see what is affecting your credit scores, consider getting a free copy of your credit report and credit scores from Experian to see what's currently showing in your credit file. END
 TITLE: How Is Your Credit Card Minimum Payment Calculated? CONTENT: What Factors Affect the Minimum Payment Calculation?\n----------------------------------------------------\nMinimum payment amounts are almost always calculated based on your interest rate and your monthly balance. In some situations—like when your account balance is under a certain amount—you may be charged a fixed amount, such as $25 or $35. The one exception to this is if your total balance is smaller than the fixed minimum payment amount, in which case you will be asked to pay your full balance.\nFor cardholders whose balances are above a certain threshold, the minimum payment may be calculated using several methods: either a flat percentage of your entire balance or a percentage plus the cost of interest and fees. Depending on the card issuer and your agreement, either of these methods might be used to calculate your minimum payment.\nIf your card issuer charges a flat percentage, your minimum payment could be anywhere from 2% to 4% of your total balance. In this case, the interest and any fees will be deducted from the total percentage calculated. If they use the alternative method, you'll pay a lower flat percentage—usually around 1%—but you'll also pay the applicable interest and fees for that period. END
 TITLE: How Is Your Credit Card Minimum Payment Calculated? CONTENT: How Do I Know How Much My Minimum Payment Is?\n---------------------------------------------\nThe easiest ways to find your minimum payment each month are to look at your mailed billing statement or log in to your credit card account online and go to the payment tab or most recent billing statement. If necessary, you can also contact your bank over the phone to ask what your minimum payment is for the month.\nAs part of the Credit CARD Act of 2009, credit card issuers are legally required to provide a \"minimum payment warning\" on each billing statement. This warning tells you the total time it will take to pay off your credit card balance and how much interest you'll pay by only making the minimum payments each month.\nCheck your statement carefully each month to find out your current minimum payment. This amount can change month to month based on your balance and can also include things like late payment fees and past missed payments. END
 TITLE: How Is Your Credit Card Minimum Payment Calculated? CONTENT: How Does Making the Minimum Payment Affect My Credit?\n-----------------------------------------------------\nYour credit scores will not be directly affected by paying the minimum amount on your credit card each month, and making on-time payment each month can actually help your credit health overall. Payment history is the most important aspect of your credit scores, and even one late or missed payment can have a negative impact on your scores—so if you're at least paying the minimum on your bill, your payment history shouldn't take a dip.\nPaying just the minimum, however, may impact your credit utilization ratio, depending on how much revolving debt you have. Credit utilization is calculated by dividing your total balances by your total available credit. Experts recommend maintaining a utilization rate under 30% to avoid negatively impacting your credit scores. By paying the minimum, your total revolving debt will go down at a slow pace and won't do much to reduce your credit utilization.\nPaying only the minimum each month could cost you quite a bit when interest is factored in and compounded over time, so try to pay more than the minimum when you can. If you can only afford to pay the minimum amount, however, do it so you avoid any late or missed payments.\nIf you're looking to pay off your credit cards, or want to learn more about your current credit card debt, consider getting a free copy of your Experian credit report and scores from Experian so you know what's in your credit file. END
 TITLE: How Do Credit Card Companies Make Money? CONTENT: When looking at how credit card companies work, it's important to distinguish between the different types of companies out there: credit card issuers and credit card networks.\nA credit card issuer is the bank or credit union that provides the credit card and lends the money used in a transaction. Chase, Citi and Capital One are three well-known credit card issuers. Co-branded credit cards like those you see from airlines or hotels are examples of issuers teaming with outside companies to create a card that offers consumers some type of specific reward.\nA credit card network—like Mastercard, Visa, American Express and Discover—is the entity that processes each credit card transaction, handling the technical aspects of electronically moving the money around. American Express and Discover are both card issuers and networks, which means that in addition to processing, they also lend the money used in their cards' transactions.\nCard issuers and networks make money in different ways. Networks typically make their money from the merchants, who pay a fee to accept electronic payments from credit cards. The issuers make money from the consumer by charging them interest and fees according to their credit card agreements. END
 TITLE: How Do Credit Card Companies Make Money? CONTENT: The Ways Credit Card Companies Profit From Cardholders\n------------------------------------------------------\nCredit card companies make money from cardholders in several ways: interest, annual fees and miscellaneous charges like late payment fees. Here is a breakdown of how each of those charges works:\n*   **Interest.** When you carry a balance on a credit card, you're typically charged interest in exchange for being able to borrow the money. Your interest rate—or annual percentage rate (APR), which combines interest and fees into one rate to help you understand what the card will cost you in a year—will vary by lender and is based on your creditworthiness. APRs on credit cards can get pretty high (15% to 30% or even higher), which is why you should pay your bill in full each month to avoid these expensive charges.\n*   **Annual fees.** Credit card issuers typically charge annual fees on rewards cards and on cards for bad credit. Depending on the card, annual fees can be pretty costly, especially for cards that offer top-tier rewards. The Platinum Card® from American Express, for example, charges an annual fee of $695—though annual fees this high are rare.\n*   **Miscellaneous charges.** This category includes several potential fees. For starters, the card issuer will charge you a late fee if you don't pay your bill on time. They may also charge you cash advance fees, balance transfer fees, foreign transaction fees for purchases you make outside the U.S., or over-limit fees when you spend beyond your credit limit. The fee amounts vary by issuer, but the good news is you may never have to pay these fees if you manage your card well. END
 TITLE: How Do Credit Card Companies Make Money? CONTENT: How Credit Card Companies Profit From Merchants\n-----------------------------------------------\nHave you ever tried to purchase something at a business that didn't accept a certain type of credit card, like American Express or Discover? These and other credit card networks charge merchants fees to process card transactions, so some merchants opt to only accept cards in certain networks. These fees vary by network, but are typically between 1% and 3%. END
 TITLE: How Do Credit Card Companies Make Money? CONTENT: Avoiding the Costs of Using a Credit Card\n-----------------------------------------\nCredit card companies make a large part of their profits from cardholders. But don't let that discourage you from using a credit card: Savvy cardholders can avoid most of the costs of using a credit card. From interest to miscellaneous fees, you can steer clear of many fees if you plan ahead and make sure you spend within your means.\nFirst, make sure to know what your annual fee is on all your credit cards. Then consider whether paying that annual fee is worth it. Do the benefits of the card outweigh the cost of the fee? If you consider the annual fee worth it, carefully read your card agreement and note all the potential benefits—then take advantage of all the card has to offer.\nAvoiding interest is simple if you manage your card right: Just make sure to pay your bill in full each month. If you need to carry a balance from month to month, make sure you do it on the card with the lowest interest rate, and pay it off as quickly as you can.\nTo avoid miscellaneous fees, be aware of what you could be charged for and when. If you know one card charges foreign transaction fees, for example, use a different card that doesn't charge these fees when you travel. Use the same strategy for all your cards. If you're not sure what fees your card charges, read through your cardholder agreement and note all the potential scenarios that could trigger fees. END
 TITLE: How Do Credit Card Companies Make Money? CONTENT: Next Steps\n----------\nAcross the country, more than six out of 10 Americans have at least one credit card. Factor in all those people who make late payments and pay annual fees and other charges—on top those who pay interest each month—and it becomes easy to understand how credit card companies are making so much money. But as we've shown, you can reduce your contributions to their coffers with smart card management strategies.\nTo make the most of your credit cards, make sure you have a card that gives you maximum rewards for your spending. To browse some popular rewards credit cards, check out Experian CreditMatchTM to see specialized card offers based on your credit profile.\nAlso remember that before applying for any credit cards, it's a good idea to check your credit so you know what lenders will see when considering you for an application. You can get a free copy of your credit reports and scores from Experian. END
 TITLE: Should I Buy a Foreclosure for My First Home? CONTENT: How Does Buying a Foreclosed Home Work?\n---------------------------------------\nForeclosure occurs when a mortgage borrower fails to keep up with their loan payments, and the lender exercises its right to seize the home and resell it to recoup (or at least reduce) their financial losses. Mortgage issuers typically put foreclosed properties up for auction, which often means selling the home for less than market value. When homes fail to sell at auction, however, lenders may slash the sales price and sell them directly.\nBecause foreclosures are often terrific bargains, they are popular with real estate investors looking to use them as rental properties or flip them for a quick profit. Competing with these investors, many of whom have access to significant credit and can put down extra-large down payments or even purchase properties outright for cash, can be challenging for first-time homebuyers.\nIf that means you, you're not necessarily out of the running for a foreclosure purchase. But to compete with investors, you'll need to lay some groundwork to document your ability to close the deal. You'll also need to be careful and decisive about choosing a property you likely won't have much time to size up before you make a bid.\nTo fully understand what you may be getting into with a foreclosure purchase, it's helpful (and sometimes essential) to work with a real estate professional with foreclosure experience. The National Association of Realtors' Short Sale and Foreclosure Resource (SFR) certification denotes agents and with training in this specialty.\nIt's also crucial to understand that foreclosure typically follows a timeline, and that purchasing opportunities and procedures differ during each stage in the process. The duration of each stage in the timeline may differ according to circumstances and state or local laws, but they typically occur in in this order:\n*   **Short sale**: A short sale occurs instead of foreclosure, when a lender agrees to let a homeowner sell their home for less than what they owe on their mortgage, with the understanding that all proceeds of the sale will go to the lender. (Lenders typically do this after determining that their loss on the sale will be less than the cost of pursuing foreclosure.)\n*   **Auction**: Foreclosure auctions are public events, and may be listed on the websites of the county, city or other municipality that conducts the auctions. Rules and requirements differ by jurisdiction, but foreclosed properties are always offered at auction in as-is condition, with the seller assuming no responsibility for property damage, repairs or financial encumbrances such as unpaid liens.  \n    Properties listed for sale at auction may or may not be available beforehand for inspection, but they are usually listed long enough in advance for a title search to be conducted ahead of time. Some jurisdictions allow a grace period after an auction is conducted that allows buyers to back out of a sale (after a title search or inspection, or for any reason at all) by forfeiting a cash deposit, but in most jurisdictions auction sales are final, and getting out of one will be costly, if it's possible at all.\n*   **Real estate-owned (REO)**: REO designates properties that have been foreclosed upon and are available for purchase directly from the lender. Most commonly these are properties that have failed to sell at public auction, but houses are occasionally available for purchase on an REO basis before they reach the auction block. REO properties may be listed on lenders' websites, but typically are not advertised or publicized and can only be purchased with help from a licensed real estate professional. END
 TITLE: Should I Buy a Foreclosure for My First Home? CONTENT: Benefits and Risks of Buying a Foreclosure for Your First Home\n--------------------------------------------------------------\nThe main benefit of purchasing a foreclosed home is savings. Depending on market conditions, you can purchase a foreclosed home for considerably less than you'd pay for comparable, non-foreclosed homes.\nThe main risks come from the degree to which a foreclosed property can be a mystery to the buyer. Foreclosed homes are sold in \"as-is\" condition, and are typically unavailable for a walk-through before purchase.\nForeclosures may have sat unoccupied, without heat or air conditioning, for weeks or months prior to sale, and past owners may have neglected or even vandalized them. If you succeed in purchasing a foreclosed home, you'll likely need some cash (or available credit) to get the property to move-in condition.\nDo-it-yourselfers may see this as a golden opportunity for savings, but less-capable (or less ambitious) homebuyers might consider putting that repair budget toward a down payment on a more conventional purchase. END
 TITLE: Should I Buy a Foreclosure for My First Home? CONTENT: Where to Find Foreclosed Houses\n-------------------------------\nThe following resources can help you find foreclosed properties for purchase. Real estate professionals in your area may know of additional resources.\n*   Bank websites. Many bank websites provide lists of REO properties for sale.\n*   The U.S. Department of Housing and Urban Development (HUD) lists homes available for purchase from government agencies, including many foreclosures.\n*   You can search for foreclosure properties on web-based real estate listing services such as RealtyTrac and Zillow.\n*   Multiple listing services (MLS) list foreclosure properties. These services are available by prescription to licensed real estate professionals. A real estate agent or mortgage broker can use MLS to access foreclosures in your area. END
 TITLE: Should I Buy a Foreclosure for My First Home? CONTENT: Steps to Take When Purchasing a Foreclosure as Your First Home\n--------------------------------------------------------------\nThink buying a foreclosure may be the right choice for you? Follow these steps to ensure the process goes as smoothly as possible. END
 TITLE: Bankruptcy or Debt Consolidation: Which Is Better for You? CONTENT: Bankruptcy is a legal process, overseen by federal courts, that's designed to protect individuals and businesses overwhelmed with debt. The two types of bankruptcy that apply to individuals are Chapter 7, also known as liquidation bankruptcy, and Chapter 13, or reorganization bankruptcy.\nBoth Chapter 7 and Chapter 13 bankruptcies can effectively erase, or _discharge_, many types of debt, including outstanding credit card balances, unpaid rent and utility bills, and private debts between you and friends or family members.\nBankruptcy cannot discharge all debts, however. Obligations excluded from discharge through bankruptcy include criminal fines, court-ordered alimony and child support payments, and unpaid taxes.\nBankruptcy also doesn't prevent mortgage lenders and auto financing companies, and other issuers of secured loans (those that use property as collateral), from foreclosing on or repossessing the property if you still owe money on it. END
 TITLE: Bankruptcy or Debt Consolidation: Which Is Better for You? CONTENT: What Is Debt Consolidation?\n---------------------------\nDebt consolidation is a strategy that combines multiple debts into one loan or credit card with the goals of reducing both the number of payments you must keep track of each month and the amount of interest you pay.\nIf you're having trouble managing several credit card bills and perhaps a medical bill or a personal loan, debt consolidation lets you merge, or consolidate, them by taking out a personal loan, line of credit or a new credit card with sufficient spending limit to pay off all the loans. Doing this means you'll have one monthly payment in place of the handful you're juggling. Even better, because the interest rates on credit cards are often very high, your new monthly payment may be lower than the sum of all your old ones.\nThere are several forms of credit you can use to consolidate debt, including the following:\n*   **Personal loan**: If you have good credit, using a personal loan for debt consolidation is often a better option than using a new credit card. Personal loans almost always have lower interest rates than credit cards, so paying off your outstanding card balances with a loan can bring significant savings in interest payments every month. Plus you'll have a single consistent payment to manage every month, simplifying your debt payoff strategy.\n*   **Balance transfer credit card**: A balance transfer credit card with a low or 0% introductory annual percentage rate (APR) can save you on interest charges as well, but it's potentially riskier than a personal loan. Introductory APRs typically last no more than 20 months, and any portion of the transferred balance that's unpaid at the end of the introductory period will be subject to the card's standard interest rate on purchases. Certain cardholder agreements even stipulate that balance transfer balances must be paid in full by the end of the introductory period or you'll be charged interest retroactively on the full amount you transferred, not just the remaining balance. That can lead to a costly interest charge that negates much of the benefit of the debt consolidation strategy. That said, if you're sure you can pay off the transferred balance before the 0% intro period ends, you could save the most money this way, even taking balance transfer fees into account.\n*   **Personal line of credit**: If you qualify for a sufficiently large unsecured personal line of credit (offered by many credit unions and some other financial institutions), you'll likely see many of the same interest payment benefits as you do with a personal loan. Depending on the total you owe on your other loans and accounts, it may be difficult to get a personal credit line large enough to cover them all.\n*   **Home equity line of credit**: If you own a home and have paid enough of your mortgage to have significant equity in the property, using a home equity line of credit (HELOC) to consolidate your debts could reduce your interest costs as well. HELOCs typically allow you to borrow against a portion of the equity in your home for a 10-year stretch known as the draw period, during which you make interest-only payments against the balance you use. At the end of the draw period, you must begin paying principal, which can mean a major increase in monthly expenses. Note that failure to repay a HELOC according to the borrowing terms can mean the loss of your home. END
 TITLE: Bankruptcy or Debt Consolidation: Which Is Better for You? CONTENT: How Do Bankruptcy and Debt Consolidation Affect Credit?\n-------------------------------------------------------\nBankruptcy does major damage to your credit. A Chapter 7 bankruptcy, because it stays on your credit report for 10 years, is probably the single worst negative event that can show up on your credit report. Bankruptcies adversely affect your credit scores the whole time they appear on your credit reports, and even though their score impact diminishes over time, many lenders won't even consider a credit applicant with a bankruptcy in their credit report.\nDebt consolidation can have a positive or negative impact on your credit, and even both at once.\nIf you use a personal loan to pay off credit cards with high balances, your credit scores could improve because of a lower credit utilization ratio—the percentage of a credit card's borrowing limit represented by the outstanding balances on the card. Credit card accounts with balances that exceed about 30% of their borrowing limits can have a negative impact on your credit scores, so replacing those balances with a personal installment loan could help your scores.\nOn the other hand, using a balance transfer credit card to consolidate multiple credit cards and loans could create a high-utilization situation. If the total amount transferred to the new card exceeds 30% of its borrowing limit, that will likely have a negative influence on your credit score—but if the cards you're paying off through the balance transfer had high utilization, the net impact on your credit scores might be insignificant.\nLike credit cards, personal lines of credit and HELOCs are forms of revolving credit that allow you to borrow against a limited amount of funds. High utilization on those accounts could also hurt your credit score.\nCredit utilization is responsible for about 30% of your FICO® Score☉ , which means that high utilization can hurt your credit scores, but also that your scores will respond relatively quickly as you lower your credit utilization. If you're confident that you can pay down a revolving balance quickly, it may be worthwhile to take a temporary credit score drop in exchange for significant savings in interest payments. END
 TITLE: Bankruptcy or Debt Consolidation: Which Is Better for You? CONTENT: Is Bankruptcy or Debt Consolidation a Better Option?\n----------------------------------------------------\nIn light of the potentially devastating consequences of bankruptcy, debt consolidation is always a preferable alternative, assuming you're eligible to do it.\nDebt consolidation depends on your ability to obtain new credit in the form of a loan, credit card or revolving account. If high debts are making bankruptcy a practical consideration, you may no longer be in a position to secure a new loan or card you can use to consolidate your debt.\nAnd while a HELOC may be an option if you own a home, you won't likely qualify if, like many bankruptcy candidates, you've missed one or more payments on your primary mortgage. If you do qualify for a HELOC, take care to ensure that you can keep up with the payments, both during and after the draw period, or you'll be putting your home at risk.\nFinally, even if you qualify for a debt consolidation loan but know you won't have sufficient means to pay it or your other bills, then it may be time to think about bankruptcy as your best option.\nBankruptcy, in other words, is the clear choice to make if debt consolidation and other measures such as a debt management plan aren't possible, or viable over the long term.\nThe strong negative effects of bankruptcy mean you should always consult with a lawyer before pursuing that option. But if you cannot use debt consolidation or other strategies to bring your debt under control bankruptcy, despite its severe consequences, may be worth it if they allow you a financial fresh start. END
 TITLE: Do I Earn Enough to Afford a $200,000 Mortgage? CONTENT: Debt-to-Income Ratio and the 28\/36 Rule\n---------------------------------------\nThe 28\/36 rule refers to two separate but related measurements of debt-to-income ratio (DTI)—the portion of your monthly income used to cover debt payments. Lenders use both versions of DTI to evaluate your ability to afford your mortgage payments and determine whether you qualify for a loan:\n*   The \"28\" part of the 28\/36 rule refers to what's known as front-end DTI—the percentage of your gross monthly income (earnings before taxes and any other deductions, for example) represented by your housing costs. To qualify for most conventional mortgages, the monthly payment on the mortgage you've applied for cannot exceed 28% of your gross monthly income.\n*   The \"36\" portion of the 28\/36 rule refers to what's known as back-end DTI, or the percentage of your monthly gross income used for all debt expenses, including mortgage payments. To qualify for most conventional mortgages, your total debt expenditures cannot exceed 36% of your gross monthly income.\nAs we'll see, several federally backed mortgage programs allow exceptions to the 28\/36 rule, but these guidelines apply to nearly all conventional mortgages.\nOther factors lenders look at include:\n*   **Your credit score(s) and credit history**: Loan applicants with higher credit scores generally pay lower interest rates on mortgages and other loans; those with lower scores may be charged higher interest rates and fees—both of which can mean higher monthly payments.\n*   **The amount of your down payment**: A down payment of 20% of the purchase price is the standard requirement, but many lenders allow borrowers with good credit to make lower down payments in exchange for higher interest rates or fees. When the down payment is less than 20%, the borrower is also required to purchase private mortgage insurance (PMI).\n*   **Your savings or other assets**: You might be able to withdraw savings or convert assets to cash to cover your monthly loan payments.\n*   **The market value of the house you want to buy**: Since the home you buy will secure your mortgage, its value is important to lenders.\n*   **Your total debt**: This includes the amount you pay each month in debt payments, and how much the payments on your mortgage will add to your monthly debt spending.\nNo matter how great your income is, you still may be disqualified based on other issues. It will likely prove difficult to get a mortgage if you have a recent bankruptcy on your credit report, for instance.\nThe lender uses the above factors to decide whether or not it will to lend to you and, if you qualify for a loan, the lender uses the same factors to determine:\n*   The amount it's willing to lend you.\n*   The length of your repayment period (how many monthly payments you'll have to make to pay off the loan).\n*   What interest rate it will charge on the loan.\n*   How much it will charge you in up-front fees, or \"points,\" for issuing the loan.\n*   Whether you'll have to buy PMI. PMI is typically required if you're putting down less than 20% of the purchase price as a down payment.\nTotal loan amount, repayment period, interest rate and fees, and PMI (if any) all combine to determine your monthly payment amount. END
 TITLE: Do I Earn Enough to Afford a $200,000 Mortgage? CONTENT: What Income Do I Need to Qualify for a Mortgage?\n------------------------------------------------\nTo illustrate how some of these variables can interact to determine your income requirements, consider the example of a 30-year fixed mortgage on a home with a $230,000 market value, for which you're prepared to make a 13% down payment of $30,000—leaving a mortgage amount of $200,000.\nAt an interest rate of 4.8% (a bit higher than the current national average of 3.99%), your monthly payment (including PMI, which is necessary when you put down less than 20% of the purchase price) would be about $1,680.\nBased on the 28% rule, which, requires that $1,680 payment to account for no more than 28% of your gross monthly income, you'd need a monthly income before taxes and other deductions of at least $6,000, or an annual gross income of at least $72,000, to qualify for that mortgage:\n$1,680\n\\=\n28\n\\[Minimum gross monthly income\\]\n100\nMinimum gross monthly income = $6,000; minimum annual gross = $72,000\nAs long as any monthly debt payments you have in addition to your mortgage payment are $480 or less, that annual income of $72,000 will also satisfy the 36% rule:\n$1,680 + $480\n\\=\n36\n\\[Minimum gross monthly income\\]\n100\nMinimum gross monthly income = $6,000; minimum annual gross = $72,000\nIf your monthly non-housing debts are greater, however, your total debt payments will exceed 36% of gross income and you'll need income to qualify for the mortgage.\nMonthly debt expenses of $600 in addition to the mortgage payment would require a gross monthly income of $6,333 or an annual income of $76,000, for example:\n$1,680 + $600\n\\=\n36\n\\[Minimum gross monthly income\\]\n100\nMinimum gross monthly income = $6,333; minimum annual gross = $76,000\nMonthly debt payments of $750 in addition to the mortgage would require annual income of $81,000.\n$1,680 + $750\n\\=\n36\n\\[Minimum gross monthly income\\]\n100\nMinimum gross monthly income = $6,750; minimum annual gross = $81,000 END
 TITLE: Do I Earn Enough to Afford a $200,000 Mortgage? CONTENT: What Are Additional Costs Associated With Buying a Home?\n--------------------------------------------------------\nPurchasing a home entails a major number of costs, some large and some less so. Many expenses associated with a home purchase, such as down payment, origination fees and PMI (if necessary) are incorporated into the final financing arrangements: The down payment is due at closing (with the exception of certain government-backed home loans, discussed below). Origination fees typically are due at closing as well, although some loan terms allow them to be \"rolled up\" into the monthly payment and paid out (with interest) over the life of the loan. PMI, when required, is incorporated into the monthly payment as well.\nAdditional one-time costs associated with a home purchase include:\n*   Fees for an appraisal, which is required by the lender to ensure the purchase price doesn't exceed the home's resale value.\n*   A property inspection (to ensure there are no undisclosed defects in the home before you finalize the purchase).\n*   Fees for a lawyer to review sales documents and attend the closing as your legal representative.\nRecurring costs you may incur with the home purchase may include:\n*   A homeowners property\/casualty insurance policy that covers the value of the home (typically required by lenders until the mortgage is paid off; policy premiums are often incorporated into monthly loan payments).\n*   Homeowners association (HOA) fees. The amount of these fees, and the services provided in exchange for them, vary among different associations. Some include trash and snow removal, landscaping services, maintenance of common areas such as a clubhouse, pool or racquet courts, and so on.\nNote that any recurring expenses directly connected to the property you plan to purchase will be added to the mortgage payment for purposes of calculating your front-end DTI. END
 TITLE: Do I Earn Enough to Afford a $200,000 Mortgage? CONTENT: How Does Credit Affect Your Mortgage Affordability?\n---------------------------------------------------\nThe first step a lender typically takes upon receipt of a mortgage application is a credit check—a request for your credit score and credit report from one or more of the three national credit bureaus (Experian, TransUnion and Equifax).\nLenders typically have a minimum credit score they're willing to consider when evaluating borrowers. Different lenders have different minimum score or \"cut-off\" requirements. Lenders use credit scores when deciding whether to offer a loan as well as when determining the fees and interest rates to charge.\nIn accordance with a widespread industry practice known as risk-based pricing, applicants with the highest credit scores typically are offered the lowest interest rates available. Those with lower credit scores are typically charged higher interest (and perhaps steeper fees as well). The basis for this is the fact that individuals with higher credit scores are statistically less likely than those with lower scores to miss payments and require lenders to initiate collections, foreclosure or other loss-prevention measures.\nMortgage lenders often offer numerous loan packages, with different interest rates and fees, targeted to borrowers whose credit scores fall within a specific numerical ranges—for instance, one offer for applicants with credit scores of 800 or better; another for those with scores of 720 to 799; and another for those with scores of 650 to 719. These are purely hypothetical examples; each mortgage lender sets its own credit score requirements. END
 TITLE: Do I Earn Enough to Afford a $200,000 Mortgage? CONTENT: What Are the Different Loans and Programs for First-Time Homebuyers?\n--------------------------------------------------------------------\nWhile the 28\/36 rule applies most conventional mortgage lenders, certain programs designed to help first-time homebuyers, veterans and certain low-income home buyers allow some exceptions:\n*   Mortgages backed by the Federal Housing Administration, known as FHA loans, are designed to help first-time homebuyers qualify for mortgages and allow back-end DTIs of up to 43%.\n*   Mortgages known as VA Loans, issued through the U.S. Department of Veterans Affairs, are geared toward veterans, service members and qualifying spouses, and allow back-end DTIs of 41%.\n*   The maximum back-end DTI allowed on USDA Loans—mortgages issued under guidelines set by the U.S. Department of Agriculture to help low-income borrowers buy homes in certain rural areas—is 46%.\n*   State and national programs designed to assist with homeownership may be able to help if you're having trouble meeting the down-payment requirements for a loan, or if your income falls below the level needed to secure some conventional loans.\nThe factors that determine the amount of a monthly mortgage loan, including your credit score and history and down payment amount, along with your monthly non-housing debt expenses, play a major role in determining how much income you'll need to afford a mortgage. Understanding DTI and the 28\/36 rule can help you anticipate your needs and plan for the mortgage-application process.\nIf you need to improve your DTI, there are two things you can do:\n*   **Increase your income.** This often requires attaining a promotion and raise, or taking on a second job or \"side hustle.\"\n*   **Reduce your monthly debt expenditures.** You can do this by paying down credit cards or paying off loans. Paying down debt can also help improve your credit scores and may mean you'll get more favorable payment terms you apply for a mortgage.\nNaturally, applying both approaches at the same time compounds their effectiveness.\nBuying a home is the biggest investment most people will ever make, but with resourcefulness and gumption, you can make it more affordable. END
 TITLE: Understanding Priority and Non-Priority Debt in Bankruptcy CONTENT: Chapter 7 vs. Chapter 13 Bankruptcy\n-----------------------------------\nU.S. law allows for two different types of individual bankruptcy procedures: Chapter 7 (also known as liquidation bankruptcy) and Chapter 13 (reorganization bankruptcy). If you file Chapter 7 bankruptcy, most of your assets will be sold off or otherwise liquidated and the proceeds used to pay your creditors. Chapter 7 filers' assets typically amount to less than their total debt.\nIf you file Chapter 13 bankruptcy, the court devises a debt reorganization plan, typically lasting five years, during which you must make repayments that are divided among your creditors. A Chapter 13 repayment plan protects you from making payments you cannot afford, which typically means creditors receive less than the full amount you owe them.\nIn either a Chapter 7 or a Chapter 13 case, because there is typically less money available to repay all creditors in full, it falls to the bankruptcy court to sort out which of your creditors get paid and how much, based on the amount of funds available. That's where the priority and non-priority distinction comes in. END
 TITLE: Understanding Priority and Non-Priority Debt in Bankruptcy CONTENT: The Difference Between Priority and Non-Priority Unsecured Debts\n----------------------------------------------------------------\nIn a bankruptcy proceeding, the judge, in coordination with a court-appointed trustee, prioritizes the bankruptcy filer's outstanding debts. Claims by creditors—companies and individuals owed money by the person filing for bankruptcy—are reviewed by the court and ranked according to their significance.\n**Priority debts** are considered so important under federal bankruptcy law that they must be addressed before all competing claims. These include:\n*   Child support\n*   Alimony\n*   Criminal fines\n*   Unpaid federal income tax obligations less than three years old (and sometimes older)\n*   Federally backed student loans. These are a special case of priority debt: They cannot be discharged automatically through bankruptcy like non-priority debts, but pursuing a separate procedure called an \"adversary proceeding\" in conjunction with a bankruptcy filing may allow them to be discharged. Having student loan debt discharged in this manner requires you to prove that you made a good faith effort to pay the loan and that you or your dependents will suffer hardship if you are compelled to repay the loan. In contrast to regular bankruptcy procedures, in which creditors are not present in court, representatives of the lender may appear at an adversary proceeding to challenge your claims.\n**Non-priority debts** include the bulk of unsecured debts, such as:\n*   Past-due credit card bills and outstanding credit card balances\n*   Unpaid personal loan payments\n*   Private debts to friends and family members\n*   Overdue bills, including those for rent, utilities and cellphones END
 TITLE: Understanding Priority and Non-Priority Debt in Bankruptcy CONTENT: How Do Priority Unsecured Debts Work in Chapter 13 and Chapter 7 Bankruptcy?\n----------------------------------------------------------------------------\nIn a Chapter 7 bankruptcy, if there are sufficient funds to repay any debts, creditors with stronger claims receive payment ahead of those with weaker claims. In a Chapter 13 bankruptcy, creditors with stronger claims may receive a higher percentage of what's owed them than those with weaker claims.\nWhen the bankruptcy filer's assets are sold off in a Chapter 7 bankruptcy, proceeds must be put toward priority debts before other creditors receive any payment. When a debt repayment plan is devised in a Chapter 13 bankruptcy, creditors with priority debts typically must be paid in full, while those with non-priority debts may have to accept partial payment.\nWhether you file for Chapter 7 or Chapter 13 bankruptcy, when the process concludes and you've fulfilled the court's requirements, most of the debts that remain unpaid are considered discharged: You are no longer responsible for them, and creditors may no longer bring suit against you or otherwise attempt to collect them. Priority debts cannot be discharged, however, and you'll remain responsible for repaying them even after other debts have been set aside. END
 TITLE: Understanding Priority and Non-Priority Debt in Bankruptcy CONTENT: How Does Bankruptcy Affect Your Credit?\n---------------------------------------\nA bankruptcy filing is considered a major negative event in your credit history, and it typically has a long-lasting negative impact on your credit score. Chapter 7 bankruptcies remain on your credit report for 10 years from the filing date, while Chapter 13 bankruptcies stay on your credit report for seven years.\nFiling for bankruptcy typically causes a significant drop in credit score. The number of points by which your score will drop depends on the score you have when the bankruptcy appears on your credit report. Individuals often file for bankruptcy after missing multiple loan payments, and sometimes after defaulting on loans or incurring property foreclosures—all events that can significantly lower credit scores. The cumulative effect of those events may cause a large enough reduction in credit score that a bankruptcy filing itself might not decrease scores very much.\nThat said, a Chapter 7 bankruptcy stays on your credit report, and hurts your credit score, longer than any other negative event. Credit scores do begin to rebound in the years following a bankruptcy filing, but many lenders refuse to consider loan applicants with bankruptcies on their credit reports, regardless of their credit scores.\nFiling for bankruptcy is a decision that should never be taken lightly. If you're considering it, and pondering whether to file Chapter 7 or Chapter 13, it can be helpful to review your debts to understand which are priority debts and which are non-priority, and which can and cannot be discharged. Consulting with legal and financial experts can help you understand the difference, and anticipate where you'll stand if you decide to move forward with a bankruptcy. END
 TITLE: Is a Recession a Good Time to Buy a House? CONTENT: What Are the Signs of a Recession?\n----------------------------------\nThe federal National Bureau of Economic Research (NBER), the recognized authority on recessions in the U.S., declared that the country entered a recession in February 2020. The NBER considers several economic indicators when making its determinations, including industrial production, employment rate, gross domestic product (GDP) growth and personal income. One common definition of recession is a decline in GDP that continues for two consecutive quarters.\nIn its announcement of the 2020 recession, the NBER bureau cited the public health crisis over the COVID-19 pandemic as the cause, rather than fundamental financial factors seen in past recessions. END
 TITLE: Is a Recession a Good Time to Buy a House? CONTENT: How Do Recessions Affect Real Estate Markets?\n---------------------------------------------\nHistorically, a recession tends to result in things such as lower industrial output, higher unemployment, lower consumer spending, increases in loan defaults and bankruptcies, and stagnant household incomes.\nThey also commonly affect the real estate market. During a recession, you might expect to see increases in rates of foreclosure, flat or even declining property values, lower home-sale volume and houses for sale staying on the market for longer periods of time before they sell.\nWhile this is generally bad news for real estate professionals and the industry overall, it can create opportunities for buyers who are able to convince mortgage lenders they can afford to keep up with their loan payments despite a slumping economy. END
 TITLE: Is a Recession a Good Time to Buy a House? CONTENT: Benefits of Buying a House During a Recession\n---------------------------------------------\nFactors that make homebuying advantageous during a recession include:\n*   **Lower interest rates:** In response to reduced spending and slowing economic growth, the Federal Reserve historically exercises its power to lower its benchmark short-term interest rate to encourage investment and increase the availability of credit for individuals and companies. A lower Fed interest rate typically leads to a reduction in the prime interest rate banks charge when lending money to one another, which in turn leads to lower interest charges on commercial and private loans, including home mortgages. Lower mortgage rates mean a lower total cost over the life of a home purchase.\n*   **Less buying competition:** Economic downturns typically mean fewer people have the means to buy a first home or upgrade to a larger one. Depending on where you're shopping for a home and the type of house you desire, that may mean you'll have fewer rivals seeking the properties that interest you. A market with fewer buyers can mean less urgency to pounce on a desirable property immediately for fear another buyer will get it before you can submit an offer. It can give you more time to shop around and compare properties, and it may also reduce pressure to submit a bid that exceeds the asking price to make your offer stand out from those of rival buyers.\n*   **Lower home prices:** In accordance with the law of supply and demand, fewer buyers might cause a home seller to lower their price to make their property more appealing. Fewer buyers tends to mean longer selling cycles, which isn't ideal for those looking to sell in a hurry for financial reasons or because they have opportunity elsewhere. These sellers may lower their sales price or be willing to accept offers below their asking price if it allows them to avoid months of marketing, and open houses. END
 TITLE: Is a Recession a Good Time to Buy a House? CONTENT: Challenges When Buying a Home During a Recession\n------------------------------------------------\n*   **Potential difficulty selling your current home:** If you need to sell your current house in order to buy a new one, the pricing trends that benefit you as a buyer may work against you as a seller. Depending on your local housing market, you may need to be prepared for lowball bids or longer selling cycles. Working with an experienced real estate professional can be helpful when pricing your home to sell as well as when submitting purchase offers on a new house. If selling now sounds unappealing, consider keeping your current house and renting it out (as long as you have funds for a down payment on a new home). Turning it into a rental property could spare you having to sell in a slow market and provide you with an additional income stream that lenders may appreciate. (Be careful, though, since rent delinquencies tend to increase during recessions.)\n*   **Tighter lending requirements:** Rising unemployment and overall lower household income often accompany recessions, and that typically means more borrowers have difficulty covering their debts. Lenders, in turn, often respond with greater caution about issuing new loans. They may give greater scrutiny to loan applications, increase the minimum credit scores required to qualify for loans, and increase down payment requirements on certain loans, including mortgages. END
 TITLE: Is a Recession a Good Time to Buy a House? CONTENT: The Importance of Good Credit in a Recession\n--------------------------------------------\nLenders' tendency to tighten lending requirements in a recession doesn't mean you can't get a mortgage, but it makes it more important than ever to make your credit profile the best it can be before applying for one—or for any other kind of loan or credit.\nBefore you apply for a mortgage, and ideally six to 12 months ahead of time, review your credit report and check your credit score to know where you stand as a loan applicant.\nIf you see any inaccuracies or fraud in your credit report, use the dispute process to get them corrected.\nConsider taking additional steps to tidy up your credit and give your credit score a boost. END
 TITLE: Is a Recession a Good Time to Buy a House? CONTENT: Additional Considerations That Could Affect Your Home Purchase\n--------------------------------------------------------------\nWhile credit scores and credit history are always important yardsticks when lenders evaluate loan applications, a recession may prompt some mortgage issuers to give extra weight to other factors that contribute to your ability to repay a loan, including:\n*   **Employment status and history:** While any job is potentially threatened by a prolonged economic downturn, loan applicants who have been with the same employer for a long time may be viewed more favorably than recent hires or those who are currently unemployed.\n*   **Savings and other assets:** Amid the unpredictable stress of a recession, lenders will be looking for borrowers with the resilience to handle extended periods of reduced income. They may therefore favor borrowers with enough financial reserves to keep up with their mortgage payments even if they are unemployed for several months at a time.\n*   **Multiple income sources:** Loan applicants with multiple sources of income may be seen as more stable than those who rely on a single salary and employer. Two-income couples applying jointly for a loan (especially one that could potentially be covered by either applicant individually) may be seen as more resilient, and alternative income sources from side businesses, investment properties, trusts or other sources could also reassure lenders.\nIf you can show a lender that you've got a strong credit history and the financial resilience to keep up with mortgage payments amid economic uncertainty, a recession could be an excellent time to buy a house. END
 TITLE: When Do Late Payments Become Delinquent? CONTENT: What Can You Do if You Have Delinquent Debt?\n--------------------------------------------\nIf you have delinquent debt or debt in collections, you are not alone. Still, you should act sooner than later to try to address the situation and begin rebuilding your credit and financial footing. Here are some steps to take.\n*   **Check your credit report.** Getting a copy of your credit report can be a great tool in evaluating your current debt situation. Review your credit report to make sure that the information reported is accurate and up-to-date. If you see information you believe is inaccurate, contact the credit bureau that provided your report to share your findings and investigate further. You can monitor your credit for free through Experian. Credit reports from all three bureaus are available through AnnualCreditReport.com.\n*   **Contact your lender.** Try to work out a plan for getting your account back in good standing. If you're experiencing a temporary income loss or other financial setback, ask about loan forbearance.\n*   **Consider a debt consolidation loan.** These loans can shift multiple high debt payments per month into a single, more manageable one. This strategy works especially well for credit cards and may even help you improve your credit scores.\n*   **Create a budget****.** Committing to spending within your means will help you manage your credit responsibly, and this will help you stay on track over time. Factor in your regular expenses, and leave a little extra to put in an emergency fund too.\n*   **Consult a certified credit counselor.** Credit counselors can help you establish and maintain a budget and get your debt under control. If it proves impossible to manage your debts with your current income, a counselor can help you get into a debt management plan (DMP), which could bruise your credit but get you out of debt in a way that allows faster recovery than bankruptcy.\nDelinquent debt can have lasting ill effects on your credit, but if you're proactive about addressing it (and abiding it in the future), you can move past it and rebuild your financial health. END
 TITLE: How Can I Get Free Credit Monitoring? CONTENT: What Is Credit Monitoring?\n--------------------------\nFree credit monitoring from Experian is a service that lets you know when certain changes to your Experian credit report occur. It also sends you regular updates on your FICO® Score☉ credit score based on Experian credit data.\nTo help protect you from fraud, Experian credit monitoring notifies you when the following events take place:\n*   **Credit checks known as hard inquiries**: The first step lenders typically take when processing a loan application is to request a credit score and a copy of your credit report to evaluate your creditworthiness. If you receive an alert about a hard inquiry that isn't connected to an application you've made, it could indicate a criminal is seeking credit in your name.\n*   **New accounts**: If a new loan or credit card account is opened in your name, Experian will alert you right away. The sooner you spot a fraudulent account opened in your name, the sooner you can take action.\nYou don't need to worry about these credit monitoring alerts as long as they're connected to your normal credit activities—applying for and opening a new credit card account, for example. But if you receive an alert about an action you're not aware of, it could be a sign of criminal activity, and you should contact the lender in question right away.\nExperian credit monitoring also alerts you to the following circumstances that can lower your credit score:\n*   **High credit card balances**: Carrying a credit card balance that exceeds about 30% of the card's borrowing limit can hurt your FICO® Score and VantageScore® credit scores.\n*   **Missed payments**: A history of on-time payments is the most significant contributor to healthy credit scores, and even one missed payment can cause significant score reductions. If you forgot to make a payment or a payment you made wasn't processed correctly, this gives you a chance to rectify the issue. More rarely, an alert can flag a missed payment on an account you didn't know existed, opened in your name by an identity thief. END
 TITLE: How Can I Get Free Credit Monitoring? CONTENT: Credit Monitoring Helps You Help Yourself\n-----------------------------------------\nCredit monitoring can make you aware of issues with your credit files, but it's still important for you to protect yourself. An alert about unauthorized credit activity, for example, will give you the heads-up to notify the lender in question that your personal information has been stolen or misused. You may also need to file disputes with the credit bureaus to get fraudulent information removed as quickly as possible.\nSimilarly, if you learn that your personal information (especially your Social Security number) has been stolen or exposed in a data breach, you might be wise to add a fraud alert to your credit files or to apply a credit lock.\nOnce you sign up for the service, it's important to remember that credit monitoring is effective at helping you detect unauthorized credit activity in your name, but it won't alert you to fraud that doesn't impact your credit report. In addition to credit monitoring, you should do the following to maintain your credit security:\n*   Guard your passwords and personal data from phishing scams.\n*   Respond to notifications of data breaches that might expose your personal information by changing passwords and card numbers as appropriate.\n*   Monitor your bank accounts for unexpected or unauthorized transactions.\n*   Take action as appropriate to improve your credit score or maintain an excellent credit score. END
 TITLE: How Can I Get Free Credit Monitoring? CONTENT: You can sign up for free credit monitoring from Experian in just a few minutes, with no credit card required. You can begin receiving updates right away, including:\n*   **Monthly credit reports**: Review your credit file for any unexpected changes and to ensure that payment information is being reported accurately.\n*   **Account balance updates**: Monitor your spending with regular updates on your credit card and loan balances.\n*   **Credit score tracking**: Review changes in your FICO® Score to help build and maintain a solid credit profile.\n*   **Real-time alerts**: Customizable alerts can inform you when credit checks are requested, when new credit accounts are opened in your name and when your card balances exceed certain percentages of their borrowing limits. These behaviors could hurt your credit scores.\n*   **Access to Experian Boost™†** : This optional program lets you apply your history of cellphone, utility and other payments toward your Experian credit score. For many who use it, especially those with limited credit histories, getting credit for these payments can lead to an increase in credit scores based on Experian credit data.\n*   **Online credit report disputes**: Request corrections to inaccurate entries in your Experian credit report via an online tool. END
 TITLE: How Can I Get Free Credit Monitoring? CONTENT: Why Should You Monitor Your Credit?\n-----------------------------------\nKeeping vigilant about the activity on your credit file—both your own and that of potential criminals—is a wise habit to adopt. Knowing your credit account status and tracking your credit score can help you work toward a more solid credit profile—and that in turn can save you money by helping you qualify for loans and credit cards with lower interest rates.\nFree credit monitoring from Experian helps you keep on top of your credit activity by making the process automatic. It actively notifies you about potentially illegal activity on your credit file so you can act quickly to address the issue. END
 TITLE: How Can I Get Free Credit Monitoring? CONTENT: Credit Monitoring Does Not Impact Your Credit Score\n---------------------------------------------------\nWhen lenders request your credit report and credit score, the resulting hard inquiries are logged on your credit report and typically cause a decrease in credit score. But checking your own credit report or credit score, either manually or automatically through Experian's credit monitoring service, has no effect on your credit score at all since it's recorded as a soft inquiry.\nFree credit monitoring from Experian is a helpful tool for tracking your own credit activity and progress toward credit score improvement—and it can also provide valuable early warnings of credit fraud and identity theft. END
 TITLE: What Is Creditworthiness? CONTENT: What Factors Determine Creditworthiness?\n----------------------------------------\nTo judge your creditworthiness, lenders look for evidence that you pay your bills and that you have a track record of successfully managing and repaying past debts, including loans and credit card debt. This typically comprises a review of your credit history and an evaluation of your ability to cover your loan payments.\nThe credit check typically involves one or both of the following:\n*   **Reviewing your credit report(s)**: Compiled and maintained by the three national credit bureaus (Experian, TransUnion and Equifax), credit reports list all your outstanding debts as well as any accounts you've paid off or closed in the past 10 years. Monthly payments on those accounts are listed as well, noted as paid on time or paid 30, 60 or 90 days late. If any of your accounts have been sent to collections, those will be noted as well, as will vehicle repossessions, property foreclosures and bankruptcies.\n*   **Checking your credit score(s)**: Credit scoring systems such as the FICO® Score☉ and VantageScore® analyze the historical data in your credit report and use it to make a statistical prediction of how likely you are to fail to repay a loan. That prediction is boiled down to a three-digit score, most commonly between 300 and 850 (though other numerical scales are sometimes used), in which a higher score denotes lower risk of loan default. In other words, a higher credit score indicates greater creditworthiness.\nThe assessment of your ability to pay may involve these steps:\n*   **Verifying your income and debt**: Before they offer you a credit card or loan, lenders may seek assurances that you can afford to pay back the money you wish to borrow. The extent to which a lender investigates this may vary depending on the loan type and amount.  \n    Some credit card lenders simply ask how much you earn and only seek verification if your credit score falls below a specific threshold they set at their own discretion. For car loans and personal loans, proof of steady income in the form of a pay stub or tax return may be required. In the case of mortgage loans, federal law requires lenders to examine your income level, monthly debt and housing expenses. These are used to calculate your debt-to-income (DTI) ratio, which helps determine the amount of mortgage loan you qualify for.\n*   **Documenting additional assets or resources**: In addition to, or in lieu of, steady income (if you're retired, for instance), lenders may consider savings, real estate holdings, investments and other financial assets that show you have resources you can draw from to repay a loan. END
 TITLE: What Is Creditworthiness? CONTENT: Why Does My Creditworthiness Matter?\n------------------------------------\nCreditworthiness gives you the ability to borrow funds or use credit as needed to pay for items that you cannot, or prefer not to, purchase with cash. Creditworthiness is most useful when financing large purchases, such as a car, college education or home.\nStarting early in life to establish credentials that signify creditworthiness can help you gain access to funding for major purchases when you need them. To do so, it's important to work on both the credit history side of the creditworthiness equation and the ability-to-pay side.\nThe notion of working toward greater income is built in to most people's career goals—but building a strong credit history is less-widely understood. Establishing credit and working toward steady credit score improvements can increase your access to different loan options, and also save you money by enabling you to borrow at competitive loan rates.\nApplying a strategy known as risk-based pricing, lenders often use credit scores to help decide the interest rates they charge. On average, it costs lenders more to manage missed payments and unpaid loans among borrowers with lower credit scores than it does to manage accounts for less risky borrowers with high scores. Lenders, therefore, typically charge higher interest rates to borrowers with lower credit scores and offer better borrowing terms to those with higher scores.\nCreditworthiness doesn't just benefit you when you need to borrow money. Building a strong credit score can help in dealings with:\n*   Landlords, who often run credit checks when deciding whether to rent you an apartment and how large a security deposit you must put down.\n*   Auto insurers, which may check your credit score when setting your premiums.\n*   Utility companies, which often perform credit checks before letting you open an account or borrow equipment.\n*   Prospective employers, which may check your credit as part of a pre-hiring background check.\nYou can demonstrate (and improve) your creditworthiness by building up your credit scores and maintaining solid credit reports—actions that go hand-in-hand. Habits that lead to healthy credit reports and promote credit score improvements include:\n*   Paying your bills on time every month.\n*   Avoiding high credit card balances, especially those that exceed 30% of the card's borrowing limit, which can cause drops in credit score.\n*   Being careful not to open new credit accounts too frequently, or to borrow funds you don't really need.\n*   Managing a variety of loans, including revolving credit accounts (such as credit cards) and installment loans (such as student loans, car loans and personal loans).\n*   Enrolling in Experian Boost™† , which lets you apply your history of utility and cellphone payments toward FICO® Scores based on your Experian credit reports.\nPart of building creditworthiness is knowing where your credit stands so you can work to improve it if necessary. Monitoring your credit report and score will give you insight into your credit progress and what lenders see when you apply for a loan or credit card.\nLike any other form of trust, creditworthiness can take some effort to earn, and a mistake or poor decision can harm it. It's possible to rebuild damaged creditworthiness over time, but better to nurture and protect it once you've achieved it. END
 TITLE: Will Refinancing My Auto Loan Hurt My Credit? CONTENT: How Does Refinancing an Auto Loan Work?\n---------------------------------------\nTo refinance a car loan, you'll use a new loan to pay off what's left on your current car loan, ideally securing yourself a lower interest rate or lower monthly payment in the process.\nThe process of finding this new loan will go much the same way it did when you initially financed the car, meaning you'll be able to apply to multiple lenders and compare interest rates and fees to find the loan with the best terms.\nOnce you accept a loan offer, the refinancing lender sends a payment for the remaining balance on your loan to the lender that originally issued it. The new lender then takes over the lien on the car (the legal right to take possession of the car if you fail to make your payments). You'll make monthly payments to the refinance lender until you've paid off the new loan.\nWhen deciding whether to refinance your car, and which lender to refinance with, you should focus on one or both of these objectives:\n*   **Save on interest.** Refinancing can reduce the total amount you'll pay for your car if your new loan has a lower interest rate. Since auto loans can be for tens of thousands of dollars, even a 1 percentage point difference can net you significant savings over the life of your loan.  \n    Remember, though, that any fees the lender charges to issue the new loan (origination fees) will reduce those savings. You also may not benefit from a refinance much or at all if you don't have much left to pay on your loan. Before refinancing, make sure you'll actually save money by calculating your interest savings and comparing it the total costs of each loan, taking fees into account.\n*   **Reduce your monthly payment.** If household expenses have increased since you took out your car loan, or if you'd just like a little more breathing room in your monthly budget, you can use refinancing to lower your monthly payments. This typically entails getting a new loan that extends your original payback period by six months or more. You'll likely end up paying more in interest, but by spreading out your repayment, you're reducing how much you need to pay every month. Refinancing to reduce your payment may be worthwhile if it helps you avoid missing a car payment or any of your other bill payments. END
 TITLE: Will Refinancing My Auto Loan Hurt My Credit? CONTENT: Refinancing a Car Can Temporarily Lower Your Credit Score\n---------------------------------------------------------\nAuto refinancing, just like any type of refinancing, has the potential to affect your credit scores as calculated by the FICO® Score☉ and VantageScore® scoring models. When you apply for loans to shop for the best rate, each lender you apply with will request a credit check that causes a hard inquiry to be entered on your credit report. This typically causes a small reduction in your credit score. If you qualify for and accept a loan offer, you'll typically see another small score dip.\nThe reason for both these score reductions is similar: When borrowers first apply for and take on new debt, they are statistically at greater risk of missing their bill payments. A few months of uninterrupted payments is all that's typically needed for your credit to return to their former levels—or even increase slightly.\nTwo considerations to keep in mind:\n*   If you're shopping around for a loan, multiple hard inquiries will not do cumulative harm to your credit score. The FICO® Score and VantageScore systems are designed to encourage loan shopping and consider applications made within a span of a few weeks as a single event as far as your score is concerned. The score impact of hard inquiries will fall off entirely within a year.\n*   Taking on new debt typically causes your credit score to dip, but because refinancing replaces an existing loan with another of roughly the same amount, its impact on your credit score is minimal.\nWhen refinancing is finalized, your new loan will appear on your credit report, and your payments toward it will be tracked. Your original car loan will remain on your credit report as well, marked \"closed in good standing,\" for up to a decade. END
 TITLE: Will Refinancing My Auto Loan Hurt My Credit? CONTENT: When Is It a Good Idea to Refinance a Car Loan?\n-----------------------------------------------\nIt makes sense to refinance a car loan under the following circumstances:\n*   **Your car is holding its resale value.** Before applying to refinance your auto loan, check valuations from Kelley Blue Book, Edmunds.com or the National Association of Auto Dealers to determine your car's approximate resale value. If your car is worth less than what you owe on it due to age, mileage crashes or other issues, refinancing may prove difficult.\n*   **Interest rates are dropping fast.** If changing economic conditions have significantly brought down the cost of borrowing, you may qualify for a new loan at a lower rate. The average interest rates on a new car loan in the U.S. was 5.76% in the fourth quarter of 2019, according to Experian data—down from the prior year. With Fed rates slashed to near-zero in 2020, it's possible you'll continue to see a greater difference in your new interest rate as time goes on.\n*   **Your credit score is higher.** If you increase your credit score significantly in the 12 months or so after taking out a car loan, you may qualify for loan offers with better interest rates. (When combined with overall interest rate declines, this could rack you up some appreciable savings.)\n*   **You need to cut expenses.** Extending your car loan repayment period may make sense if you need to reduce monthly expenses, even if it means paying more over the course of the new loan. END
 TITLE: Will Refinancing My Auto Loan Hurt My Credit? CONTENT: When Is It a Bad Idea to Refinance a Car Loan?\n----------------------------------------------\nAn auto loan refinance can be a smart way to save money, but there are several circumstances in which it may not make sense:\n*   If interest rates have increased since you took out your original car loan, it may be impossible to get a better financing rate, even if your credit scores have also improved in the interim. (As noted above, this has not been a big concern in recent years, but circumstances can always change.)\n*   If you've paid off the majority of your car loan, the benefits of refinancing may be negligible, as origination fees on the new loan could offset the savings you'd get by refinancing just 12 to 18 months of payments. (If you're in expense-cutting mode, the need to stretch out your payment term and lower payments could overrule this consideration.)\n*   If you purchased your car new or near new and have since logged exceptionally high mileage, or if it's been damaged in a crash, flood or other mishap that'll significantly reduce its resale value, you may not be able to get a loan that covers what you owe on the original loan.\nFinally, a strategic consideration: If you're planning to seek a mortgage or other large loan in the next six to 12 months, it's wise to refrain from applying for any credit, including auto refinancing, that could cause a dip in your credit score. Avoiding new credit applications can help you present your best possible credit score when you submit your mortgage application. END
 TITLE: Will Refinancing My Auto Loan Hurt My Credit? CONTENT: Can You Refinance an Auto Loan With Bad Credit?\n-----------------------------------------------\nIf your credit scores have dropped significantly since you took out your original car loan, it may be difficult to find refinancing that saves you money because lenders typically charge higher interest rates to applicants with lower credit scores. If your refinancing goal is lower monthly payments, however, you may be able to find an auto lender that specializes in borrowers with less-than-ideal credit. You may qualify for a new loan with a longer repayment period that'll cost more over time than the original loan did, but the extra expense could be worth it if it means you can pay today's bills more easily.\nIf you're at risk of missing a payment on your original car loan and having difficulty finding refinancing options, reach out to your lender as quickly as possible to explain the situation. While they are not obligated to do so, some lenders will work with you and may even modify your original loan terms to give you lower payments—in exchange for a higher interest rate and potential fees. END
 TITLE: Will Refinancing My Auto Loan Hurt My Credit? CONTENT: Getting Your Credit in Shape for Auto Refinancing\n-------------------------------------------------\nWhen seeking auto refinancing or applying for any credit or loan, it's wise to review your credit reports and check your credit score to know where you stand as an applicant. You can get a free credit report from all three consumer credit bureaus (Experian, TransUnion and Equifax) by visiting AnnualCreditReport.com. You can also get a free copy of your Experian credit report every 30 days.\nAs you research your loan options, you can also take steps to increase your credit score quickly, with the best tactics for fast improvement being:\n*   Paying down high credit card balances, ideally getting all balances down to 30% or less of the cards' borrowing limits.\n*   Consider enrolling in Experian Boost™† , which applies your record of cellphone, cable and other utility payments to your Experian credit report and can help increase FICO® Scores based on Experian data.\n*   Continuing to make all your debt payments on time.\nRefinancing a car can save you money over the long term, reduce your monthly payments (or both!) to ease your household budget. Experian partner RateGenius can help you better understand your auto loan refinance options. Shop around for lenders and do your best to put forward the best credit scores you can get, and you could drive home a great deal. END
 TITLE: What Is an Online Loan Provider? CONTENT: How Do Online Loan Providers Work?\n----------------------------------\nApplying for an online loan often entails two steps. First comes prequalification—a quick screening that will require you to provide a few personal details (name, address and Social Security number) and answer a few quick questions about your borrowing requirements and income. Once that's submitted, a soft inquiry check of your credit score may be performed and your responses reviewed before you're approved to move on to the second step, loan application. You'll be able to submit a formal loan application based on an offer that specifies a range of loan amounts, a range of interest rates that could apply to the loan, and potential fees associated with the loan.\nDepending on the size and the type of loan, you may be asked to submit some documentation along with the loan application, including proof of identity (copies of a photo ID) and employment (recent pay stub), and evidence of income (a recent pay stub or tax return). With large loans or mortgages, you also may need to document your savings, investments, outstanding debts and household expenses. This information is typically submitted electronically to online lenders via PDF or can be scanned using the camera on your smartphone or tablet.\nOnce you submit all required information, the lender typically does a hard inquiry credit check that includes one or more of your credit reports and the credit score or scores based on them. Based on its review of your credit, the lender could decline your application (if it does so based on your credit, it must tell you why), or make you an offer that specifies an exact loan amount and interest rate, with a details on any origination fees, penalties for making late payments or paying off the loan ahead of schedule, and so on.\nBefore you accept any loan terms, it's always a good idea to seek and compare offers from multiple lenders to make sure you're getting the best possible deal. When you accept a loan offer, the amount you borrow could be deposited into your bank account as quickly as the next day. END
 TITLE: What Is an Online Loan Provider? CONTENT: Are Online Loans Safe?\n----------------------\nWhile there are many reputable online lenders, it's also relatively easy for scammers to set up legit-looking lending sites, so it's wise to check up on any online lenders you're considering before giving them your personal information.\nHints a provider is less than legitimate include:\n*   Promises of guaranteed loan approval.\n*   Lack of a physical address on their website or company background information. (Virtual companies may not have offices open to the public, but they have to exist somewhere.)\n*   Requiring a credit card number, wire transfer or \"application fee\" before issuing a loan offer.\n*   Come-ons for \"no credit check loans\" or \"bad credit loans,\" which often turn out to be payday loans with extremely high interest rates.\nAmong the ways to check out online lenders is to look for user reviews at neutral third-party websites and referral organizations such as the Better Business Bureau. END
 TITLE: What Is an Online Loan Provider? CONTENT: Benefits of Online Loan Providers\n---------------------------------\nSince online loan providers are more varied in their company structure, strategy and funding sources than traditional lenders, they're able to operate a little differently—and borrowers can reap the rewards.\nSome are tech startups; others are affiliated with public companies or financial institutions. Still others, typically focusing on personal loans, are peer-to-peer (P2P) platforms funded by other consumers, who fund the loans as an investment.\nThe man benefits of online lenders include:\n*   **Convenience**: Even allowing time for researching each lender, you can likely shop around and get prequalified at multiple online lenders in the time it'd take to visit a traditional lending institution.\n*   **Soft inquiry prequalification**: The prequalification process for online loans uses soft inquiries, comparable to those recorded on your credit report when you check your score yourself. Soft inquiries have no effect on your credit score the way hard inquiries do. (If you move ahead following prequalification and submit a formal loan application, you'll likely be subjected to a hard inquiry that can cause a small dip in your credit score.)\n*   **Fast turnaround**: Online lenders may only take a day or two to decide whether to offer you a loan, where a traditional lender could take a week or more to get back to you. Once you accept a loan, funding is fast, too, with the borrowed amount typically deposited in your checking account within the next few business days. You could see a deposit that quickly if you borrow from an institution you already bank with, but otherwise the funds transfer could take several days to fully clear.\n*   **Options if your credit is subpar**: Some online lenders specialize in customers who have less-than-ideal credit, so you may be able to get a loan online if your credit is poor, though you should be prepared to pay a fairly steep interest rate if you qualify. END
 TITLE: What Is an Online Loan Provider? CONTENT: Drawbacks of Online Loan Providers\n----------------------------------\nPotential downsides of borrowing through an online lender include:\n*   **Convenience at a cost**: While it's easy to shop around and close an online loan, poking around with local providers—including the neighborhood banks and credit unions where you might already have accounts—could get you better loan terms. It's more effort, but it could be worth it in the long run.\n*   **Lack of face-to-face contact**: If you have questions or an issue with your loan, you won't be able to drop by a local office to get information. Most reputable online lenders offer solid support via online chat, email and phone, but hours may be limited. END
 TITLE: What Is an Online Loan Provider? CONTENT: Where to Get an Online Loan\n---------------------------\nWhen searching for a loan from an online lender, you'll have plenty of options in front of you. To help you cut down the noise, consider searching for a lender with the help of Experian CreditMatch™. CreditMatch™ can prequalify you for personal loans, student loans and debt consolidation loans from reputable lenders, and direct you to offers you are likely to qualify for based on your credit score.\nOnline loan providers provide a great opportunity to shop around for loans and to get a rough idea how much you can afford to borrow—and at what cost in terms of interest and fees. And if you qualify and accept an online loan, you can get your funds extremely quickly. END
 TITLE: Can You Get A Mortgage With No Credit? CONTENT: What Does It Mean to Have No Credit?\n------------------------------------\nHaving no credit, also known as being \"credit invisible,\" means you don't have enough recent credit activity to get a credit score. Since checking a credit score is often the first step lenders take when evaluating your creditworthiness, the lack of a credit score can complicate the mortgage application process.\nThere are several circumstances that lead to lack of credit. The most common is lack of credit experience, which is something generally experienced by people just coming of age and entering the workforce. But retirees and others who have paid off debts and who haven't used a credit card or other financing in two years or more cannot be assigned a FICO® Score☉ or VantageScore® either. Recent immigrants to the U.S., even those with extensive credit histories in other countries, cannot get a credit score when they arrive in the U.S. because they have no credit files at the three national credit bureaus.\nImportant to remember, however, is that lack of credit is not the same as poor credit, and no credit score is not the same as a low credit score. A low credit score typically indicates a spotty history of credit management, marked by late or missed payments (at best), and accounts in collection, foreclosure or a recent bankruptcy (at worst).\nLenders view low credit scores as warning signs of potential trouble with loan repayment and may use them as grounds for declining loan applications or charging high interest rates to offset the risk of nonpayment. All things considered, it may be more difficult to get a mortgage with a very low credit score (below 500) than it would be to get one with no credit score. END
 TITLE: Can You Get A Mortgage With No Credit? CONTENT: Is It Possible to Get a Mortgage With No Credit?\n------------------------------------------------\nIt is possible to get a mortgage without a credit score, but it will require bypassing the automated mortgage application processes used by many lenders in favor of a more time-consuming process called manual underwriting. It will also require you to provide proof that you pay your bills on time by documenting payments not related to debt, such as rent and utility bills.\nIn contrast to automated mortgage underwriting, which uses credit scores as a \"shortcut\" to forecast the likelihood of repayment failure, manual underwriting requires a loan officer to personally review your financial documents to determine your creditworthiness. Specific requirements will vary from lender to lender, but you should expect to provide at least a couple years' worth of evidence that you've paid rent regularly and on time, and that you've also made timely payments for utilities, cellphone service or other recurring expenses.\nYou should also expect to document employment, income and perhaps other assets such as savings and investments, as you would in a regular automated mortgage application.\nThe extra time and expense of manual underwriting have made it relatively uncommon among mortgage lenders, so you may need to hunt around to find willing lenders. Small, local institutions, including credit unions, can be a good place to start (though credit unions typically require you to be a member to qualify). Some online lending sites and specialty mortgage lenders offer manual underwriting as well. END
 TITLE: Can You Get A Mortgage With No Credit? CONTENT: Mortgage Options for Those With No Credit\n-----------------------------------------\n### Conventional Mortgages\nIf applying with an acceptable credit score, an applicant with sufficient funds to make a 3% down payment and an adequate debt-to-income (DTI) ratio could qualify for a conventional mortgage at the lender's discretion. DTI measures the percentage of a borrower's monthly income that goes toward debt payments, and conventional mortgage lenders typically look for a ratio of 50% or less. In a manual underwriting situation, even with a solid track record of paying your bills, lenders will likely require down payments of at least 10% and a DTI ratio of no more than 36%. The lender may also require you to show proof that you have at least one year's worth of payments in your bank account.\nIf your down payment is less than 20% of the home purchase price, the lender may require you to pay for private mortgage insurance (PMI), which helps protect the lender in case you default on the loan. PMI can be removed from a conventional mortgage once you've made enough payments to own 20% of the home's market value. PMI pricing is typically set based on the borrower's credit score, so in the absence of a credit score, you should expect to pay the PMI premiums the lender charges to borrowers with the lowest credit score they'll accept.\n### FHA Loans\nIf you're a first-time homebuyer planning to use the house you buy as your residence (as opposed to a vacation home or rental property), you may qualify for a mortgage backed by the Federal Housing Administration, otherwise known as an FHA loan.\nFHA loans are designed to create opportunities for homebuyers whose credit scores are less than ideal or who can't afford to make a down payment on a conventional loan. Federal guidelines allow lenders issuing FHA loans to consider \"nontraditional credit histories,\" including candidates with no credit score. Try to find several FHA lenders so you can compare rates and borrowing terms—since the FHA gives lenders some leeway in their pricing and fees, some may offer you a better deal than others.\nGeneral requirements for an FHA loan include:\n*   A down payment of at least 3.5% of the home's market value\n*   DTI ratio (that is, the mortgage payment as a percentage of gross monthly income) no greater than 31%\n*   Paying mortgage insurance for the full duration of the loan (or for 11 years if you make a down payment of 10% or more)\n*   Enough cash in the bank at closing to make at least one monthly mortgage payment\nWhile FHA loans may be more accessible than conventional loans, they are considerably more expensive over their lifetime than conventional loans in similar amounts. A conventional mortgage could save you tens of thousands of dollars over a comparable FHA loan. END
 TITLE: Can You Get A Mortgage With No Credit? CONTENT: How to Build Your Credit Score for a Mortgage\n---------------------------------------------\nWhile it's possible to get a mortgage without a credit score, the process is typically faster when you have a credit score, and even a fair to good credit score will likely mean you have more lending options to choose from than trying to apply with no credit at all.\nIf you've never had a loan or credit card, you can establish a credit score within about six months. It likely won't be great, but it'll get you a start.\nIf you've gone \"credit invisible\" because you simply haven't used credit in a couple of years, you can re-establish a credit score in three or four months simply by activating a credit card by making a purchase. It can be a small purchase, and if you can pay it off immediately (avoiding interest charges), that'll be enough to regenerate your credit file.\nOnce you've established (or revived) your credit report, you can build up your score by making regular purchases and payments in any amount. As long as the payments are made on time each month, they'll add to your positive payment history and will tend to increase your credit scores. As little as six months of positive payment history can lift your credit score. END
 TITLE: Can You Get A Mortgage With No Credit? CONTENT: Get Credit While You're Establishing Credit\n-------------------------------------------\nIf you have a history of making utility and cellphone payments on time, the free Experian Boost™† service will give you credit for your on-time payments. Experian Boost can help you improve your credit score or add to your credit file to help you establish credit more quickly.\nGetting a mortgage will generate credit reports for you at all three national credit bureaus (Experian, TransUnion and Equifax), but establishing credit before you apply for your mortgage could make shopping for the loan—and a home—faster and easier. END
 TITLE: Will a Mortgage Preapproval Hurt My Credit Scores? CONTENT: What Is Mortgage Preapproval?\n-----------------------------\nMortgage preapproval—not to be confused with mortgage prequalification—entails a detailed review of your finances by a loan officer at a bank or other lending institution. Based on information you supply about your income, outstanding debt, credit history and ability to make a down payment, preapproval determines how large a loan the lender expects to offer you and the interest rate and fees you can expect to pay on that loan.\nPreapproval doesn't guarantee you'll get a loan, but it means you've been subjected to most of the financial scrutiny required for approval, and it's as close as you can get to full approval without designating a specific property you want to buy.\nWhen you're preapproved for a mortgage, the lender gives you a letter detailing its willingness to issue you a loan, and the terms of that loan. A potential buyer with a preapproval letter may have a leg up over others who lack preapproval and therefore aren't as equipped to prove they can finance the purchase. END
 TITLE: Will a Mortgage Preapproval Hurt My Credit Scores? CONTENT: How Mortgage Preapproval Affects Your Credit\n--------------------------------------------\nAs part of the mortgage preapproval process, you must authorize the lender to review your credit report from one or more of the three national credit bureaus (Experian, TransUnion or Equifax), and allow them to obtain credit scores based on those reports.\nWhen the lender requests those credit checks, a notation known as a hard inquiry appears on your credit report. Because hard inquiries are associated with the acquisition of new debt, they can cause your credit credit scores as calculated by the FICO® Score☉ and VantageScore® scoring models to dip. This score reduction is usually short-lived, and the inquiry will drop off your credit report completely after two years. END
 TITLE: Will a Mortgage Preapproval Hurt My Credit Scores? CONTENT: How to Get Your Credit Ready for a Mortgage\n-------------------------------------------\nReview your credit profile before you seek a mortgage or mortgage preapproval and, if needed, take steps to improve your credit before the lender checks it. Ideally you should begin this process at least a year before you start house hunting, but even a few months of focused activity can help you spruce up your score.\nYou can take the following steps to help get your credit ready for the mortgage process:\n*   Check your credit score. When you do so, be sure to review the risk factors that accompany it, since these are the items in your credit report that are having the biggest negative impact on your score.\n*   Go over your credit reports and correct any fraud or inaccuracies that could be hurting your credit score. Free credit monitoring from Experian can help you quickly spot any credit irregularities.\n*   Stop applying for new credit and limit credit card purchases to avoid increasing your utilization ratio.\n*   Reduce how much you owe and try to pay down debt, especially high credit card balances.\n*   Focus on paying all your bills on time.\nIf you plan ahead and spruce up your credit score beforehand, you can increase the likelihood of mortgage preapproval, minimize the impact of the modest credit score reduction that comes with the preapproval process and embark on your quest for a home well-equipped for success. END
 TITLE: What Happens When Loan Forbearance Ends? CONTENT: When Mortgage Forbearance Ends\n------------------------------\nMortgage forbearance is a topic many Americans are learning about for the first time, as they seek relief from lenders in the face of coronavirus-related income losses.\nFor many homeowners, mortgage forbearance is an option provided under the Coronavirus Aid, Relief and Economic Security (CARES) Act. Among its many economic relief provisions, the CARES Act requires lenders and servicers responsible for federally backed mortgages to offer homeowners payment forbearance; these include FHA loans, VA loans, USDA loans and all mortgages owned or securitized by Fannie Mae or Freddie Mac.\nHomeowners with mortgages not backed by the federal government may still qualify for COVID-19 mortgage forbearance under voluntary relief programs put in place by lenders. If your loan falls under this category and you're interested in mortgage forbearance, contact your lender to see what options they're offering.\nMortgage forbearance terms vary, but all require you to eventually make up for the payments that were excused during the forbearance period. While the CARES Act makes special stipulations for certain loans (see below), repayment under normal circumstances is typically handled in one of three ways:\n*   **Reinstatement**: Under reinstatement, you pay a lump sum covering the total amount by which your payments were reduced during forbearance, plus interest and possible fees, at the end of the forbearance period. Upon reinstatement, you resume making regular loan payments in the same amount you paid before forbearance, on the original payment schedule spelled out in your loan agreement.\n*   **Repayment plan**: A repayment plan divides the amount you were excused from paying during the forbearance period into installments and adds them (with interest and possible fees) to your regular monthly mortgage payments. The number of repayment installments is negotiable and can depend in part on your ability to make payments, but it's usually no greater than 12 months. Increasing the number of installments lowers the amount of each payment, but adds to total interest paid over the repayment term.\n*   **Mortgage modification**: A mortgage modification permanently restructures your loan to reduce the monthly payment and make it easier for you to keep up with payments. Under a mortgage modification, any amount you were excused from paying during forbearance is added back into the total you owe and factored into the new payment structure. A mortgage modification can extend the repayment period on your mortgage by a number of months and add significantly to the total amount you'll pay over the remainder of the loan. END
 TITLE: What Happens When Loan Forbearance Ends? CONTENT: When Credit Card Forbearance Ends\n---------------------------------\nIf a credit card issuer agrees to give you forbearance on your account (sometimes referred to as deferment), relief may include one or more of the following:\n*   A reduction in your minimum payment amount\n*   Permission to skip one or more payments (without incurring a penalty or extra interest charge)\n*   An increase in your borrowing limit\n*   A reduction in your interest rate\nCredit card forbearance does not stop interest charges from accumulating on your account balances, and those charges can add up quickly. If you have a high balance and are making minimum payments (or none at all), interest can snowball quickly.\nIf you can't resume making regular payments after your credit card forbearance period ends, the card issuer could reduce your borrowing limit, block you from making new purchases, or force you to accept a plan for settling your balance in fixed installments.\nThe last option would result in a notation on your credit report indicating the account was \"closed at credit grantor's request.\" Missing an installment payment in this arrangement, like missing a regular credit card payment, would lead to a delinquency being recorded on your credit report, and that could have a significant negative impact on your credit score. END
 TITLE: What Happens When Loan Forbearance Ends? CONTENT: Due to the CARES Act and subsequent extensions, the servicers of most (but not all) federally backed student loans have put loan payments on hold through September 30, 2021. No interest will accrue while loan payments are suspended, and efforts to collect any delinquent payments on those loans have been suspended.\nOnce that relief period ends, borrowers with federally backed student loans will still have access to relief provisions built into their loan agreements. Those take the form of deferment—suspension of payments during which accrued interest payments are subsidized—and forbearance, which typically entails accrual of interest charges.\nBorrowers with federally subsidized student loans may qualify for loan deferments on the basis of financial hardship, unemployment, military service or college enrollment.\nThere are two types of student loan forbearance: general forbearance, similar to the forbearance offered by mortgage and credit card lenders in response to temporary financial difficulty, and mandatory forbearance, which servicers of federally backed student loans must grant under a variety of circumstances, including payments exceeding 20% of your monthly gross income and enrollment in medical internships, AmeriCorps, the Peace Corps or the National Guard.\nDuring forbearance, interest will continue to accrue on your loan. If you do not pay that accrued interest by the time your forbearance period ends, it will be added to your loan balance (or _capitalized_), resulting in a larger payoff amount. END
 TITLE: What Happens When Loan Forbearance Ends? CONTENT: The Bottom Line\n---------------\nLoan forbearance is a form of temporary relief that can be a real lifesaver in times of financial hardship. While it typically comes at some cost in the form of extra interest charges, the peace of mind it provides can be invaluable. Just be sure you know the terms and what will happen when the forbearance period on your loan ends so you can be prepared for what follows. END
 TITLE: How Much Credit Should I Use? CONTENT: What Is Credit Utilization?\n---------------------------\nOne of the first things many of us learn about credit scores is that maxing out a credit card—having a balance equal to or greater than the card's borrowing limit—is bad news for your score. But those with the highest credit scores often have (and use) multiple credit cards every month. So how much usage is too much?\nThe key to knowing how much credit to use begins with understanding your credit utilization ratio. This ratio measures the percentage of your available credit you're using at a given time. To determine your credit utilization ratio, divide your current balance by your credit limit. So, for example, if you have a credit card with a borrowing limit of $6,500 and your balance is $1,500, the utilization ratio for that card is $1,500 divided by $6,500, or 0.23 (23%).\nCredit scoring models such as those maintained by FICO and VantageScore® factor the utilization ratios for each of your credit cards into their calculations when determining your credit score. They also factor in your total utilization ratio: the sum of all your credit card balances divided by the sum of all your credit limits. END
 TITLE: How Much Credit Should I Use? CONTENT: What's an Excellent Credit Utilization Ratio?\n---------------------------------------------\nIn general, the lower your credit utilization ratio, the better your credit score. Aim for a total utilization ratio, and ratios for each credit card, of no more than 30%. Your credit score will take a bigger hit once your utilization goes above that. People with exceptional credit scores (800 or higher on the FICO® Score☉ range of 300 to 850) tend to keep utilization under 10% for each card and for total credit card use. END
 TITLE: How Much Credit Should I Use? CONTENT: How Does Credit Utilization Affect Your Credit Score?\n-----------------------------------------------------\nUtilization plays a big role in determining your credit score: FICO® says it's responsible for about 30% of your FICO® Score, second only to payment history. High utilization can signal overborrowing, lack of borrowing capacity and potential difficulty making payments. Credit scoring systems may reflect that by lowering scores.\nA low utilization, on the other hand, can show that you're managing your credit cards responsibly. Whether you have one credit card or many, maintaining low utilization with each card and overall is typically rewarded by the credit scoring models. END
 TITLE: How Much Credit Should I Use? CONTENT: How Do I Reduce My Credit Utilization Ratio?\n--------------------------------------------\nThere are two ways to bring down your credit utilization ratio: reducing the outstanding balances on your credit cards and increasing your borrowing limits. Doing both at the same time can be highly effective. END
 TITLE: How Much Credit Should I Use? CONTENT: Closing Credit Cards Can Increase Utilization\n---------------------------------------------\nIt might seem like closing a credit card you never use would help your credit score. However, if you have outstanding balances on one or more credit cards, closing an unused credit card account will increase your utilization ratio by reducing your total borrowing limit.\nIf your utilization percentage is in the low single digits, that may not matter much—and if all your card balances are zero, it won't matter at all. But if your total utilization is closer to 30%, closing the unused card could end up hurting your credit score.\nIf you're eager to get rid of an old card (because it has an annual fee you don't want to pay, for instance), consider getting a new card first. As long as the new card's credit limit equals or exceeds the old card's, it will compensate for the loss of the old card's credit limit. END
 TITLE: How Much Credit Should I Use? CONTENT: Debt Consolidation Loans and Utilization\n----------------------------------------\nA strategy for reducing credit utilization rapidly is to use a personal loan to consolidate your credit card debt. Taking out a loan and using it to pay all or most of your outstanding credit card balances (or a large percentage of them) can reduce your utilization ratio to zero. This can save you money, because personal loans typically charge lower interest rates than credit cards.\nThis strategy obviously won't reduce your overall debt, but can still help your credit score improve relatively quickly because installment debt such as personal loans aren't included in utilization calculations. Just beware the temptation to run up new balances and utilization ratios on those freshly paid-off cards. If you start charging on them again, your utilization ratio—and your financial situation in general—will suffer. END
 TITLE: How Much Credit Should I Use? CONTENT: Monitoring Your Credit Will Show Your Progress\n----------------------------------------------\nThere's no absolute best amount of credit to use to help improve your credit scores, but keeping your total utilization ratio and the ratios for each of your credit cards below about 30% will prevent serious reductions in credit score and promote score improvement.\nTo see how utilization may be affecting your credit scores, check your credit regularly. You can get free credit monitoring from Experian, which gives you access to your Experian credit report and FICO® Score, and alerts you when your credit file changes. AnnualCreditReport.com provides free credit reports from the three national consumer credit bureaus—Experian, TransUnion and Equifax—which can help you track all your credit reports. END
 TITLE: Will Late Payments Affect My Credit During the COVID-19 Crisis? CONTENT: Will Late Payments Be Reported During the Coronavirus Pandemic?\n---------------------------------------------------------------\nMany, many borrowers are facing the prospect of missing payments as a consequence of income loss during the pandemic. If you're among them, there's a good chance your lenders are prepared to work with you to provide payment relief without causing late payments to appear on your credit reports.\nA wide array of creditors, including mortgage lenders and credit card issuers, are offering temporary payment relief during the pandemic. You must contact your lender(s) to take advantage of these programs, which include: END
 TITLE: Will Late Payments Affect My Credit During the COVID-19 Crisis? CONTENT: What Are My Options if I Can't Make a Payment During the Crisis?\n----------------------------------------------------------------\nHere are steps you can take in different debt categories if you know you will miss at least one payment on your account. END
 TITLE: Will Late Payments Affect My Credit During the COVID-19 Crisis? CONTENT: How Late Payments Impact Your Credit Score\n------------------------------------------\nIf you've entered into payment forbearance or deferment agreements with your lenders, payments that are reduced or suspended during forbearance will not be considered delinquent, and will not affect your account's standing on your credit reports.\nIf you make partial payments or miss them altogether without formalizing an arrangement with your lender—even if your missed payments are COVID-19-related— you can expect them to be reported to the credit bureaus and to appear on your credit reports as delinquent. (Late payments made without your lender's consent can hurt your credit score significantly.)\nIt's always best to keep up with your debt payments if you can, making timely payments on mortgages and auto loans, and covering at least the minimum payment due on credit card bills as you are working through a financial hardship. However, as noted above, if you qualify for COVID-19-related relief measures, you can lower your payments without incurring delinquencies. END
 TITLE: Will Late Payments Affect My Credit During the COVID-19 Crisis? CONTENT: What to Do if a Late Payment Is Reported\n----------------------------------------\nIf a late payment is reported in error, or if a delinquency your lender agreed to assign natural-disaster status isn't noted accordingly, you should submit disputes to all three national credit bureaus to correct the entries and protect your credit scores. If you have backing documentation from the lender, you can provide it when you submit your dispute.\nConsider adding a consumer statement to your credit report. You can use this option to briefly explain circumstances that led to a specific series of missed or reduced payments on a single loan or account, or to describe general financial difficulties that led to missed payments on multiple accounts.\nConsumer statements don't negate delinquencies, and they won't help your credit score, but a lender reviewing your credit report as part of a loan application could give it consideration, and it could spark a beneficial conversation with a loan officer. Just be sure you remove the statement once your account has moved back into positive status or been removed from your credit report. A statement that informs lenders of past financial difficulties won't help you once the difficulty has passed.\nTo help you monitor your credit status during the pandemic, Experian and the other national credit bureaus are providing free weekly access to your credit reports at AnnualCreditReport.com. END
 TITLE: Are Foreclosures Still Happening During COVID-19? CONTENT: Federal Foreclosure Suspensions Aid Homeowners\n----------------------------------------------\nThe federal Coronavirus Aid, Relief and Economic Security (CARES) Act enacted in late March contains a number of measures that aim to relieve financial strain on Americans affected by the crisis.\nOne component of the CARES Act was a 60-day moratorium, or suspension (subsequently extended), of foreclosure proceedings against homeowners with federally backed mortgages who are behind on payments. The moratorium order covers borrowers with FHA loans, USDA loans, VA loans and conventional loans backed by Fannie Mae or Freddie Mac.\nThe moratorium prohibits lenders and servicers of federally backed mortgages from conducting foreclosure-related evictions and from taking legal action that leads to foreclosure. (It does not prevent lenders or servicers of loans not backed by the government from pursuing foreclosures.)\nIf you were facing foreclosure before the CARES Act was passed, it's possible that state or local laws will continue to protect you from foreclosure for the foreseeable future. If you enrolled in a mortgage forbearance program established under the CARES Act, you're also likely protected for a time. END
 TITLE: Are Foreclosures Still Happening During COVID-19? CONTENT: State and Local Foreclosure Measures Still Apply\n------------------------------------------------\nIn addition to the homeowner protections rolled out by the federal government, many state and local authorities have enacted their own policies. The details of these state and local foreclosure bans vary, and many are set to stay in place until respective governors lift statewide emergency declarations—a target that will vary as states set their own goals and timelines for reopening. Other states forbid foreclosures until set dates in late spring or summer.\nThe scope of state and local foreclosure suspensions vary as well. Some measures freeze the entire foreclosure process similar to the federal moratorium—preventing homeowner evictions and court actions required for their authorization. Other measures bar lenders from removing the occupants of a house (eviction), but allow foreclosure-related legal proceedings to continue.\nThe National Consumer Law Center maintains a state-by-state list of COVID-19 foreclosure relief measures, but cautions that it may be incomplete since states and municipalities are continually adapting to the changing health and economic conditions.\nTo check for additional COVID-19 foreclosure measures that may apply to you, visit the official websites for your state or local governments. If you're unable to find help there, try a web search for \"foreclosure assistance\" paired with the name of your city, county or state. END
 TITLE: Are Foreclosures Still Happening During COVID-19? CONTENT: Forbearance Stops Foreclosure Countdown\n---------------------------------------\nIf you have a federally backed mortgage, the CARES Act entitles you to six months of mortgage forbearance—a reduction or suspension of your payments—with an option to extend for another six months. Lenders of conventional mortgages without federal backing are not bound by this requirement, but some are offering voluntary forbearance programs in response to the coronavirus pandemic.\nIf you arrange mortgage forbearance through your lender under provisions of the CARES Act, mortgage delinquency status is \"frozen\" as it was before forbearance began: If your loan was paid up and in good standing, it will stay that way even if you make reduced payments or no payments at all during the forbearance period. If your payment status was 30 days past due at the start of forbearance, it will remain so and not incur additional delinquency even if payments are suspended during the forbearance.\nLenders typically notify borrowers of their intent to foreclose only after mortgage payments are 90 days past due. So by freezing mortgage delinquency status, forbearance effectively puts foreclosure on hold, even after the federal moratorium ends.\nNote that you _must_ contact your lender to arrange for mortgage forbearance under the CARES Act. Forbearance is not automatic: If you stop making your payments or make partial payments without notifying the lender, even for reasons related to COVID-19, your lender can report your payments as delinquent. END
 TITLE: Are Foreclosures Still Happening During COVID-19? CONTENT: Be Prepared to Make Payments When the Moratorium Ends\n-----------------------------------------------------\nEven the most generous foreclosure moratorium—one that prevents the lender from removing you from your home and stops all legal processes aimed at ousting you—is at best a stopgap.\nIf you're 90 days or more past due on your mortgage payments, a foreclosure moratorium may keep you in your home for the time being. But be prepared to deal with foreclosure proceedings when applicable moratoriums or forbearance ends. To avoid having to vacate the property, you'll have to come to some arrangement with your lender—one that will likely mean repaying the payments you missed, with interest and possible penalties on any missed payments before the moratorium was put in place by the CARES Act.\nSimilarly, if you qualify for mortgage forbearance under the CARES Act or another program offered by your lender, you eventually will have to pay back any amount you were excused from paying during the forbearance period. The CARES Act forbids lenders from charging extra interest on those payments, but you still must make up for the payments themselves. The details of the repayment process under the CARES Act have yet to be defined, but lenders cannot require borrowers to repay excused payments in a single lump sum at the end of the forbearance period. END
 TITLE: Are Foreclosures Still Happening During COVID-19? CONTENT: Use Foreclosure Relief Wisely\n-----------------------------\nIf a moratorium has bought you extra time, it's in your best interest to use that time constructively, to arrange for staying in your home or, if necessary, to find other living arrangements.\nIf COVID-19 or other circumstances mean you will be unable to resume your mortgage payments (and eventually make up for any payments you've missed) when forbearance or applicable moratoriums end, options to consider include: END
 TITLE: Are Foreclosures Still Happening During COVID-19? CONTENT: Where to Look for Help\n----------------------\nIf you're facing the possibility of foreclosure today or at the end of a moratorium or forbearance period, or if you're a tenant facing eviction, consider tapping the resources below for information and assistance.\n*   The first step in pursuit of foreclosure relief should be to reach out to your lender or loan servicer (the company that collects your monthly payments). If you need help identifying your mortgage servicer, you can find it by searching the Mortgage Electronic Registration Systems (MERS) online database.\n*   Contact a HUD housing counselor. HUD can refer you to a local counselor for free advice on how to avoid foreclosure.\n*   Consult an attorney with housing expertise. If you can't afford to hire one, look for help at the website of the Legal Services Corporation, a nonprofit that funds local and regional legal aid organizations, or at LawHelp.org, a referral site for private law firms that provide pro bono assistance in their communities.\n*   Check your state's housing finance agency for guidance on foreclosure-prevention measures that may apply to you. You can find yours using this directory, maintained by the National Council of State Housing Agencies.\n*   MakingHomeAffordable.gov, the website set up to help homeowners after the 2008 housing crash, offers good advice and resources for avoiding foreclosure.\n*   Nonprofit housing advocacy organizations such as the Homeownership Preservation Foundation and NeighborWorks America offer advice and support for homeowners trying to avoid foreclosure. END
 TITLE: Are Foreclosures Still Happening During COVID-19? CONTENT: Beware Foreclosure Scams\n------------------------\nIf you are facing foreclosure, and particularly if you live in a jurisdiction that publishes the names of foreclosure subjects in local newspapers or online, you may be targeted by individuals or companies promising to make foreclosure go away for a fee.\nAs the Federal Trade Commission warns consumers, any service that seeks payment upfront, guarantees it can stop foreclosure, or claims it can use errors in your mortgage contract to force renegotiation of lending terms is unethical. Providers of these \"services\" prey on those who fear losing their homes. Paying them wastes money at a time when cash is sorely needed, but, perhaps even worse, they can use up valuable time that'd be better spent working with a lender or servicer directly. END
 TITLE: Are Foreclosures Still Happening During COVID-19? CONTENT: Protect Your Credit\n-------------------\nAmong the many reasons for avoiding foreclosure is that it has a major negative impact on your credit history, second in severity only to bankruptcy. Foreclosure remains on your credit report for seven years from the date of the first delinquent payment that led to foreclosure.\nDelinquent payments have a serious negative impact on credit and credit scores, and because foreclosure typically occurs only after a borrower has missed at least three payments (gone 90 days past due), it typically does further damage to scores that have already taken a beating.\nUnder the CARES Act, your credit report is shielded from reports of mortgage delinquency as long as you are participating in a pandemic-related mortgage relief program. If payments you make (or are excused from making) appear as delinquent on your credit reports, you can dispute them and potentially have them removed.\nFree credit monitoring from Experian can help you keep track of your credit status during the COVID-19 pandemic. Additionally, during the outbreak you can get free credit reports weekly from all three national credit bureaus (Experian, TransUnion and Equifax) at AnnualCreditReport.com.\nThe COVID-19 pandemic has disrupted life in America like few other events in living memory, and it has placed families under tremendous stress. While foreclosure-prevention measures provide relief from another major source of anxiety, it's wise to use the time they provide to resolve your housing payment issues. END
 TITLE: How Can I Get a Mortgage Modification? CONTENT: A mortgage modification is a significant change your lender makes to your loan terms when you are about to miss a payment or after you've missed one or more mortgage payments. Lenders use different methods to modify mortgages, but the main goal is to prevent foreclosure so you get to stay in your home and the lender avoids the expense of seizing and reselling the property.\nQualifying for a mortgage modification typically requires that you demonstrate a significant hardship. If you're looking into a mortgage modification, make sure your lender offers this option, as not all do.\nEntering into a loan modification will likely have a negative effect on your credit, but it will be less severe than you'd see with a foreclosure—and you can take steps to improve your credit that will help you get back on track.\nA mortgage modification will lower your monthly payments, though it may result in greater total costs for you over the lifetime of the loan. If you qualify for a mortgage modification, your payment reduction may be achieved through any of several methods, including:\n*   **Reducing your interest rate**: Cutting your interest rate by several points can lower your monthly payment significantly. Rate-reduction modifications often use a step-up approach, in which your interest rate and monthly payment amount increase periodically (typically every five years) for the remainder of the loan's lifespan.\n*   **Extending your repayment period**: Stretching out your loan repayment over a longer period of time will reduce your monthly payments. Just keep in mind that doing so may significantly increase the total amount of interest you pay over the life of the loan. If your situation changes and you're able to afford a higher payment, however, you can consider refinancing to a loan with a better rate.\n*   **Converting from an adjustable to a fixed interest rate**: If your financial hardship is related to periodic payment increases associated with an adjustable-rate mortgage (ARM), the lender may opt to convert you to a fixed-rate loan that's more predictable and manageable.\n*   **Principal reduction**: In extremely rare instances, the lender may lower the principal portion of your loan, effectively handing you a chunk of equity in your house. If you're given that type of modification, consult your tax advisor, because the equity you receive may be considered taxable income.\n*   **Refinancing**: Strictly speaking, a mortgage refinance is not a modification because it generates a new loan agreement, rather than adjusting your existing one. It's seldom a viable alternative for modification candidates because qualifying for a new loan could be difficult. But lenders may occasionally suggest this course for borrowers who have significant assets they can use in a pinch to cover the loan (or that the lender can place a lien against in case of default on the new loan). END
 TITLE: How Can I Get a Mortgage Modification? CONTENT: Who Can Get a Mortgage Loan Modification?\n-----------------------------------------\nEligibility requirements for mortgage modifications vary from lender to lender, but you typically must:\n*   Be at least one regular mortgage payment behind or show that missing a payment is imminent.\n*   Provide evidence of significant financial hardship, for reasons such as:\n*   Long-term illness or disability\n*   Death of a family member (and loss of their income)\n*   Natural or declared disaster\n*   Uninsured loss of property\n*   Sudden increase in housing costs, including hikes in property taxes or homeowner association fees\n*   Divorce END
 TITLE: How Can I Get a Mortgage Modification? CONTENT: How to Get a Mortgage Modification\n----------------------------------\nIf you've missed one or more mortgage payments or, better yet, know you're about to miss a payment but haven't yet gone delinquent, contact your lender (or the servicer that collects your payments) and explain the reasons for your difficulty making payments.\nBe prepared to discuss your financial difficulties in some detail. You'll have to document your hardship (for example, loss of income, disability or death of a spouse) as part of a formal application, so gather relevant paperwork before you call so you'll be prepared to answer questions.\nThe lender will likely require you to apply for the modification in writing, and to submit proof of income and expenses before and after the onset of your hardship. That could include tax returns, pay stubs, monthly bills and statements, plus information on your savings and any assets you may have (investment accounts, real estate and the like).\nIf your mortgage is backed by any number of federal agencies or programs, you may qualify for a government mortgage modification plan:\n*   Fannie Mae and Freddie Mac, the federally backed agencies that hold more than 95% of U.S. single-family mortgage loans, share a program called Flex Modification, which allows adjustment of mortgage terms in response to a wide range of financial hardships. Qualifying mortgages must be at least one year old, and applicants must be delinquent on their payments or facing foreclosure.\n*   First-time homeowners with mortgages backed by the Federal Housing Administration, known as FHA loans, may be eligible for a variety of relief programs. These include loan forbearance—suspension or reduction of payments for a fixed number of months, after which the excused payments must be repaid—and mortgage modification. Borrowers with FHA loans may also qualify for _partial claim_ loans from the Department of Housing and Urban Development, which can be used for forbearance repayment and do not come due until after the original FHA mortgage is paid off or the property is sold. As with other government-backed mortgage programs, homeowners should seek information on FHA programs from the lenders that issued their loans.\n*   Active and retired servicemembers and surviving spouses with mortgages backed by the U.S. Department of Veterans Affairs (VA) can apply for loan modification programs and a variety of other programs designed to help avoid foreclosure. The VA advises homeowners to consult their lenders about relevant options, and to consult a federal housing counselor for guidance.\n*   The Coronavirus Aid, Relief and Economic Security (CARES) Act, signed into law in late March 2020 in response to the COVID-19 pandemic, offers a wide range of additional relief options for borrowers with federally backed mortgages, including mortgage forbearance for up to 12 months, followed by mortgage modifications if needed. The scope of those potential modifications, and criteria for qualifying for them, are a work in progress in light of the law's recent enactment. Homeowners should contact their mortgage servicer (the company that collects their mortgage payments) for information on assistance under the CARES Act.\nWhile the CARES Act only covers federally backed mortgages, private lenders may be extending comparable relief programs to their borrowers. END
 TITLE: How Can I Get a Mortgage Modification? CONTENT: How Does a Mortgage Loan Modification Affect Your Credit?\n---------------------------------------------------------\nLenders may report your loan modification to the national credit bureaus, and its appearance on your credit report could adversely affect your credit score. The long-term impact of a mortgage modification typically will be less severe and long-lasting than the damage done by foreclosure.\nIn the case of mortgage modification programs that require you to be delinquent on your payments to qualify, your credit report will reflect missed payments in addition to the modification itself. Depending on your credit history and the credit score you had before those missed payment(s), your first delinquency could cause a greater drop in credit score than a subsequent mortgage modification would.\nIf a mortgage modification works as intended and allows you to stay in your house and resume regular on-time mortgage payments, you will be well positioned to rebuild your credit and restore your credit score within a few years—a much better prospect than having a foreclosure on your credit report for seven years from the date of the first delinquency that led to it. (Credit scores can recover significantly within the seven years following foreclosure, but many lenders view a foreclosure on your credit report as grounds for declining a loan application.) END
 TITLE: How Can I Get a Mortgage Modification? CONTENT: Alternatives to Mortgage Modification\n-------------------------------------\nIf you do not qualify for mortgage modification, ask your lender about other options they may offer to help you avoid foreclosure. Potential options include:\n*   **Repayment plans**: If you've missed a few mortgage payments but are able to resume regular payments, a repayment plan can temporarily increase your monthly payments until you've repaid the amount you missed (plus interest), after which your payments will return to the normal amount.\n*   **Mortgage forbearance**: A forbearance plan suspends or reduces your payments for up to 12 months, after which you must resume regular payments and repay the payments excused during the forbearance period. Forbearance programs are designed for borrowers with temporary financial challenges.\n*   **Refinancing**: If you have good credit and interest rates are more favorable than they were when you got your original mortgage, it may be possible to refinance your mortgage—that is, replace your original loan with a new one with more affordable payments. END
 TITLE: How Can I Get a Mortgage Modification? CONTENT: The Bottom Line\n---------------\nMortgage modification can be a major benefit to families facing income loss. If your financial outlook has taken a downturn and you're worried about losing your home to foreclosure, reach out to your lender now to see how they can help. While your credit may take a hit in the process, you'll come out in better shape in the long term—both financially and emotionally—if you avoid foreclosure and stay in your home. END
 TITLE: What Credit Score Is Needed for a Personal Loan? CONTENT: Why Do I Need a Good Credit Score for a Personal Loan?\n------------------------------------------------------\nWhen applying for a personal loan, or any other type of credit, a good credit score can mean a greater range of choice for you in terms of lenders and loan offers, and more attractive borrowing terms (interest rates and fees).\nCredit scores represent your history with credit as recorded in your credit reports, and give lenders a sense of how experienced and responsible you are in handling debt. Higher credit scores correlate with lower likelihood of failing to repay debts, so lenders consider it riskier to lend money to borrowers with low credit scores than to those with high ones. They typically offer their best deals on loans and credit (lowest fees and interest rates) to borrowers with high credit scores. Lenders usually charge more to borrowers with lower scores to offset their greater chances of loan default, and if an applicant's credit score is too low, might not even offer them credit at all.\nEach of your credit scores reflects the information in your credit file at each of the three national credit bureaus (Experian, TransUnion and Equifax), as analyzed by a credit scoring system such as the FICO® Score or VantageScore® model. While their specific calculations are highly guarded trade secrets, all credit scoring systems are broadly responsive to the same basic set of factors:\n1.  Payment history: Making monthly debt payments on time, consistent with your borrowing agreement, is the single most important factor affecting credit scores. Even one missed payment can have a negative impact on your score. Payment history accounts for 35% of your FICO® Score.\n2.  Credit utilization ratio: Credit utilization is calculated by dividing the total amount of your credit card balances by the sum of all your card borrowing limits. Creditors prefer utilization rates of no more than 30%, and higher utilization can hurt your credit score. Credit utilization accounts for 30% of your FICO® Score.\n3.  Credit history length: Assuming you keep up with your bills and avoid excessive credit balances, the longer your credit history, the higher your credit score is likely to be. Credit scoring models consider the age of your oldest credit account, the age of your newest credit account and the average age of all your accounts. How long you've held credit accounts makes up 15% of your FICO® Score.\n4.  Credit mix: People with exceptional FICO® Scores often carry a variety of credit accounts, such as car loans, credit cards, student loans, mortgages and other credit products. Credit scoring models consider the types of accounts and how many of each you have as an indication of how well you manage a wide range of debts. Credit mix accounts for 10% of your FICO® Score.\n5.  New credit: The number of credit accounts you've recently opened, as well as the number of recent hard inquiries lenders have made in response to your credit applications, accounts for 10% of your FICO® Score. Too many recent new accounts or inquiries can indicate increased risk and hurt your credit scores. As long as you keep up with your bills, drops in your credit scores related to new accounts typically vanish in a few months. END
 TITLE: What Credit Score Is Needed for a Personal Loan? CONTENT: What Else Affects Personal Loan Eligibility?\n--------------------------------------------\nWhen lenders consider personal loan applications, their top concerns are your ability and reliability when it comes to repaying the loan. Your credit score is an indication of reliability, but they typically require proof of income as well, in the form of one or more of the following:\n*   Proof of employment\n*   Pay stubs\n*   Tax return\n*   Documentation of other income sources (pension, investment income, disability compensation, etc.)\nA lender might also ask for evidence of savings or other sources of cash you could tap as needed to cover your loan payments. END
 TITLE: What Credit Score Is Needed for a Personal Loan? CONTENT: How to Get a Personal Loan With Bad Credit\n------------------------------------------\nIf your FICO® Score is in the poor range, or even the lower end of the fair range, you may have challenges getting approved for a personal loan, but there are borrowing options available to many borrowers with less-than-ideal credit.\nSome of those options are best avoided, including:\n*   Payday loans and other \"no credit check loans\" that promise cash in a hurry at tremendously high interest rates (300% or even 400% APR).\n*   Car title loans, which often come with high rates as well, and which can lead to the lender seizing your car if you're unable to make a payment.\nBetter alternatives for borrowers with subpar credit include:\n*   Some peer-to-peer (P2P) lenders offer personal loans to applicants with credit scores as low as 580, and a few ignore credit scores altogether, instead using alternative criteria, such as your work and educational history, to gauge creditworthiness.\n*   Credit unions often offer members more lenient borrowing terms than banks and other traditional lenders. You have to have an account at the institution to be a member, and it may have to be open for 30 days before you're eligible for certain loans. In addition to personal loans, some offer loans known as payday alternative loans (PALs) that can get you up to $1,000 quickly and without a credit check, on borrowing terms far more favorable than those of payday lenders. END
 TITLE: What Credit Score Is Needed for a Personal Loan? CONTENT: Improve Your Credit Score Before Applying\n-----------------------------------------\nIt's always a good idea to check your credit score before you apply for any loan and, depending on how urgently you need your personal loan, it could be to your benefit to take six months to a year to focus on improving your credit score before submitting your application. You won't be able to convert a score in the fair range to one that's exceptional in that short a time, but you might be able to bump a fair score up to good, or a good one to very good—improving your odds of getting a loan in the first place, or of getting a favorable interest rate.\nThe steps you can take to improve your credit score quickly will depend in part on your individual credit history (and the risk factors that appear with your credit score may help focus your efforts most efficiently). But the following steps often have the quickest impact, and can lead to appreciable score increases within 12 months or even less:\n*   Pay down outstanding credit card balances, especially on any accounts with balances that exceed 30% of their borrowing limit.\n*   Pay all your bills on time without fail.\n*   Avoid applying for any new loans or credit cards, to give the impact of any recent credit inquiries time to subside. END
 TITLE: What Credit Score Is Needed for a Personal Loan? CONTENT: Personal Loan Alternatives\n--------------------------\nIf you're unable to get a traditional personal loan, you may be able to bridge your need for cash via one of these alternatives:\n*   **Credit card cash advance**: Many credit cards let you borrow cash at ATMs by entering a special personal ID number (PIN) along with your card. This can be a convenient way to get money fast, but card issuers typically charge interest rates on advances that are even higher than the ones they apply to standard purchases.\n*   **Peer-to-peer loans:** Web-based lending sites that compete with traditional financial institutions don't always check credit scores, but they do typically require evidence of income and other assets that can make loan approval difficult for those with a limited credit history or poor credit scores. It's worth investigating these sites anyway, especially if you keep the loan amount small (under $5,000).\nIf other options fail, consider a debt management plan (DMP). Under a DMP, you work with a certified credit counselor who may negotiate with your creditors to accept less than the total amount(s) you owe. Participation in a DMP entails closing all of your credit card accounts, and it is noted in your credit reports. Because lenders view it as a severely negative event, pursuing a DMP can hinder your ability to borrow money for several years afterward.\nAccess to a personal loan when you need one (or even when you just want it) is one of the many benefits of establishing and maintaining a healthy credit score. When you think you're ready for a personal loan, explore the offers matched to your credit profile with Experian CreditMatch™. END
 TITLE: How to Negotiate a Car Loan CONTENT: Be Prepared and Know Your Finances\n----------------------------------\nBefore you even start shopping around for a new vehicle, it's important to take stock of your financial situation and figure out how much you're comfortable spending. END
 TITLE: How to Negotiate a Car Loan CONTENT: Research Auto Loans and Interest Rates\n--------------------------------------\nWhen you work with a dealer, their finance department can shop around for your vehicle loan, getting rates from multiple lenders so you don't have to.\nThe downside is that dealers aren't legally required to offer you the best rates you qualify for. In fact, the rate you're quoted may include compensation for the dealer for arranging the financing between you and the lender.\nThis means it's a good idea to shop around and compare interest rates for yourself before you even head to the dealership so you know what's available based on your credit and income.\nMany lenders offer what's called a direct loan, which means they lend to you directly rather than working through a dealership.\nYou can also apply for car loans directly on lender websites, and some even prequalify you with just a soft credit check, which won't hurt your credit score. Even if you do have to submit a loan application, credit scoring models typically combine auto loan hard inquiries if they're all made around the same time—typically within 14 to 45 days of one another. This means your loan applications will have less of an effect on your credit scores.\nThis process of applying for and comparing auto loan rates and terms with several lenders can take time, but it's time well spent if it can help you score a lower interest rate.\nAlso, this process may be able to help you negotiate your interest rate directly with lenders. Some lenders may offer to beat any rate you get from a competitor, so the more options you consider, the better your chances are of saving money.\nAs you compare interest rates, make sure to look at the annual percentage rate (APR), which represents the total cost of borrowing, including both interest and fees. END
 TITLE: How to Negotiate a Car Loan CONTENT: Other Ways to Reduce Your Auto Loan Interest Rate\n-------------------------------------------------\nBanks and credit unions charge interest to compensate for the risk they take on when lending money. So one key to lowering your interest rate is to reduce the risk you present to prospective lenders. Here are some ways to do that:\n*   **Make a larger down payment.** The more you borrow from a lender, the more it stands to lose if you default on your payments. By putting more money down or trading in a vehicle, you'll not only reduce how much you have to borrow, but you could qualify for a lower interest rate.\n*   **Reduce the sales price.** Again, the less money you borrow, the less of a risk you pose to lenders. And, ultimately, you'll save more money overall if you set your budget based on how much the vehicle costs rather than the monthly payments, which car dealers sometimes focus on. You can reduce the sales price by choosing a cheaper car or declining add-ons, such as service and maintenance contracts and gap insurance.\n*   **Opt for a shorter repayment term.** Lenders typically offer lower interest rates with shorter repayment terms because there's less of a chance you'll default over, say, four years than seven years. The only caveat is that shorter repayment terms equal higher monthly payments, so you'll need to make sure you can afford them.\n*   **Get a cosigner.** If you have bad credit or you simply want more negotiating power, consider asking a creditworthy cosigner to apply for the loan with you. Your cosigner agrees to make payments on the loan if you can't, effectively reducing the risk of default for the lender. Just keep in mind that if someone cosigns with you, the loan also shows up on their credit report, and payment problems will damage their credit history.\nConsider these and other ways to reduce your interest rate before it's time to negotiate with the dealer or lenders.  \nHow to Lower Auto Loan Interest Rates After Getting a Loan\n----------------------------------------------------------\nEven after all your efforts, it's still possible you won't qualify for the interest rate you want. Fortunately, that doesn't mean you're stuck with a high interest rate for the entire term of your loan. If you can improve your credit score, you may be able to refinance your car loan with a different lender and score better terms.\nHere are a few actions you can take that will contribute to your overall creditworthiness:\n*   **Check your credit report.** Your credit report provides a list of all your current and some or all previous credit accounts, and can provide you with the information you need to know which areas you need to address.\n*   **Dispute** inaccurate or fraudulent information. In rare instances, incorrect or even fraudulent information could show up on your credit report. If this happens, you can file a dispute with the credit reporting agencies to have the details corrected or removed.\n*   **Pay on time, every time.** If you're behind on payments with any of your credit accounts, get caught up as quickly as possible, then focus on paying on time every month going forward.\n*   **Pay down your credit card balances.** Your credit utilization ratio, which is your total card balance divided by your total credit limit, is an important factor in your credit score. In general, the lower your utilization ratio, the better, so work on paying down your credit card debt and keep it relatively low.\n*   **Use your utility payments to boost your score.** Utility and phone payments haven't had any impact on your credit score historically. But with Experian Boost™† , you can connect your bank accounts and opt to have the positive payment history associated with those accounts added to your credit file, which can help increase your FICO® Score.\nIt's not always easy to know when to refinance a car loan, but it's generally best to consider it if your credit score has improved or interest rates have gone down since you took out the first loan.\nAgain, as you go through this process, it's a good idea to shop around and compare rates from multiple lenders. When you find the best deal for your situation and the lender approves the loan, it will pay off your original loan on your behalf.\nTo give you an idea of your potential savings, let's say you initially took out your car loan when your credit scores were much lower than they are now, and your $15,000 loan had a 15% interest rate and 60-month repayment term—that gives you a monthly payment of $357.\nNow, let's say you're roughly 16 months into paying off your loan, and your loan amount is down to $12,000. Your credit score is now in the fair range, so you start shopping around for new rates and the lowest you qualify for is 8%. If you were to replace your current loan with a new one that has a 48-month repayment term, your monthly payment would drop to $293, and you'd save $1,601 in interest over the remainder of the new loan.  \nNever Settle\n------------\nIf your credit isn't in stellar shape, you may have a hard time qualifying for some of the best interest rates auto lenders have to offer. But that doesn't mean you have to settle for a high interest loan, even if you have bad credit.\nTake your time to consider your options, shop around and compare interest rates, and look for opportunities to reduce the amount of risk lenders take on. If you have time before you need a new car, don't rush into anything. Be prepared to walk away if the terms of the loan don't match your budget.\nAnd if you don't have time, take what you can get now and work on building your credit, so you can qualify for a lower interest rate through refinancing in the future. END
 TITLE: How to Negotiate a Car Loan CONTENT: How to Lower Auto Loan Interest Rates After Getting a Loan\n----------------------------------------------------------\nEven after all your efforts, it's still possible you won't qualify for the interest rate you want. Fortunately, that doesn't mean you're stuck with a high interest rate for the entire term of your loan. If you can improve your credit score, you may be able to refinance your car loan with a different lender and score better terms.\nHere are a few actions you can take that will contribute to your overall creditworthiness:\n*   **Check your credit report.** Your credit report provides a list of all your current and some or all previous credit accounts, and can provide you with the information you need to know which areas you need to address.\n*   **Dispute** inaccurate or fraudulent information. In rare instances, incorrect or even fraudulent information could show up on your credit report. If this happens, you can file a dispute with the credit reporting agencies to have the details corrected or removed.\n*   **Pay on time, every time.** If you're behind on payments with any of your credit accounts, get caught up as quickly as possible, then focus on paying on time every month going forward.\n*   **Pay down your credit card balances.** Your credit utilization ratio, which is your total card balance divided by your total credit limit, is an important factor in your credit score. In general, the lower your utilization ratio, the better, so work on paying down your credit card debt and keep it relatively low.\n*   **Use your utility payments to boost your score.** Utility and phone payments haven't had any impact on your credit score historically. But with Experian Boost™† , you can connect your bank accounts and opt to have the positive payment history associated with those accounts added to your credit file, which can help increase your FICO® Score.\nIt's not always easy to know when to refinance a car loan, but it's generally best to consider it if your credit score has improved or interest rates have gone down since you took out the first loan.\nAgain, as you go through this process, it's a good idea to shop around and compare rates from multiple lenders. When you find the best deal for your situation and the lender approves the loan, it will pay off your original loan on your behalf.\nTo give you an idea of your potential savings, let's say you initially took out your car loan when your credit scores were much lower than they are now, and your $15,000 loan had a 15% interest rate and 60-month repayment term—that gives you a monthly payment of $357.\nNow, let's say you're roughly 16 months into paying off your loan, and your loan amount is down to $12,000. Your credit score is now in the fair range, so you start shopping around for new rates and the lowest you qualify for is 8%. If you were to replace your current loan with a new one that has a 48-month repayment term, your monthly payment would drop to $293, and you'd save $1,601 in interest over the remainder of the new loan. END
 TITLE: How to Negotiate a Car Loan CONTENT: Never Settle\n------------\nIf your credit isn't in stellar shape, you may have a hard time qualifying for some of the best interest rates auto lenders have to offer. But that doesn't mean you have to settle for a high interest loan, even if you have bad credit.\nTake your time to consider your options, shop around and compare interest rates, and look for opportunities to reduce the amount of risk lenders take on. If you have time before you need a new car, don't rush into anything. Be prepared to walk away if the terms of the loan don't match your budget.\nAnd if you don't have time, take what you can get now and work on building your credit, so you can qualify for a lower interest rate through refinancing in the future. END
 TITLE: Is a Personal Loan the Same as a Consolidation Loan? CONTENT: What is the Difference Between a Personal Loan and a Debt Consolidation Loan?\n-----------------------------------------------------------------------------\nPractically, there is no difference between a personal loan and a debt consolidation loan. Debt consolidation is just one of many uses for a personal loan. END
 TITLE: Is a Personal Loan the Same as a Consolidation Loan? CONTENT: When to Use a Personal Loan\n---------------------------\nBecause you can use a personal loan for just about anything, it's easy to think up reasons to get one—but that doesn't mean you should. Personal loans can be lifesavers when you need cash to pay for emergencies, such as a dead furnace or a ruptured appendix. If you take out a loan for something more frivolous, you may not qualify for (or be able to afford) a second loan when disaster strikes.\nWith that in mind, if your emergency fund and retirement savings are in good shape and your monthly expenses are manageable, funding a once-in-a-lifetime vacation or the bicycle of your dreams, for instance, could be a good use for a personal loan. END
 TITLE: Is a Personal Loan the Same as a Consolidation Loan? CONTENT: Benefits of a Debt Consolidation Loan\n-------------------------------------\nFor many borrowers, the convenience of replacing multiple bills with a single monthly payment is reason enough to consider a debt consolidation loan. In contrast to the changing balances and minimum payment amounts on credit card bills, a personal loan's fixed payment amount can also simplify budgeting.\nThe biggest benefit of a debt consolidation loan, however, is the amount of money you can save on interest charges. The national average interest rate for credit cards is about 16%, and the average rate on a 24-month personal loan is about 10%.\nAs with other types of credit, the interest rates you're charged on a personal loan vary according to your credit score. Borrowers with FICO® Scores☉ in the very good (740-799) and exceptional (800-850) ranges can expect to get the best deals on personal loans and credit cards alike. END
 TITLE: Is a Personal Loan the Same as a Consolidation Loan? CONTENT: How Will a Personal Loan Affect Your Credit Score?\n--------------------------------------------------\nStill another benefit of debt consolidation is the potential for boosting your credit scores. Using your personal loan to pay off credit cards lowers your credit utilization ratio—the percentage of your credit card borrowing limit represented by your outstanding credit card balances. If your utilization on any single credit card or your overall utilization among all cards exceeds 30%, your credit scores can suffer—so paying off your card balances can help your score improve.\nAdding a personal loan to your portfolio of credit accounts can also increase your \"credit mix,\" or the different types of credit you manage. Credit mix can also promote a higher credit score.\nOn the downside, applying for a personal loan typically triggers a credit check known as a hard inquiry, which causes a small, short-term drop in your credit scores. Your scores typically will recover within a few months as long as you keep up with all your bills.\nIf mishandled, a personal loan can also have a more serious negative effect on your credit score. Missing just one payment on any loan is the single event that can do the most damage to your credit score. So when considering a personal loan for debt consolidation or any other purpose, take care to ensure you can afford the monthly payments.\nIf you use a loan for debt consolidation, resist the temptation to run up new balances on the credit cards you paid off with the loan. Managing new card charges along with the monthly installments on the personal loan could blow your budget and undo the credit score benefits of lowering your utilization rate—not to mention defeating the original purpose for the loan. END
 TITLE: Is a Personal Loan the Same as a Consolidation Loan? CONTENT: Alternatives to a Debt Consolidation Loan\n-----------------------------------------\nDebt consolidation loans aren't the only way to manage your debts. Here are two other options to consider:\n*   **Balance transfer credit cards**: While the interest rates on personal loans can be considerably lower than those on credit cards, the introductory rates on many new credit cards is even lower: 0%. Transferring the balances from other cards to a new card with a 0% interest rate can save you money, but be careful: You're typically charged a fee on each transfer that is a percentage of the transfer amount (usually about 3%). Also, those low intro rates are typically good for 21 months or less, after which any unpaid portion of the transfer amount is subject to the card's standard interest rate. Do the math to confirm that the transfer fee will cost you less than you'd pay in interest on the original charge. If so, and if you can pay off the transferred amount in full before the intro rate expires, you could save some money and boost your overall spending limit as well.\n*   **Debt management**: Debt consolidation is a good strategy for organizing and reducing the costs of credit card bills and other personal debt, but it may not be enough if your debt is out of control. If you're feeling overwhelmed by your bills and have missed or are about to miss bill payments, it's worth seeking help. Credit counseling can help you get a handle on your finances and explore your options for getting debt under control, and a debt settlement program can help you negotiate with your creditors to lower your monthly expenses and eventually get you out of debt. These programs can have negative consequences for your credit scores, but they can also ease your stress and put you in a good position to rebuild your credit.\nThe flexibility and versatility of personal loans make them useful for a host of potential purposes, and one of the best ways you can use them is as a debt consolidation tool to reduce the hassle and high cost of managing multiple credit card bills and other high interest debt. END
 TITLE: How Does a Money Order Work? CONTENT: What Is a Money Order?\n----------------------\nA money order is like a paper check that isn't attached to a checking account. You purchase a money order with cash upfront from your financial institution or a service like Western Union, MoneyGram or the U.S. Postal Service (USPS). Because the funds are prepaid, a money order can't \"bounce\" like a check; as long as the money order is real, the funds are guaranteed. In 2021, you may be more inclined to send a secure payment digitally through an app like Venmo or PayPal, but money orders are still a valid way to pay—and a preferred method for those who prefer to keep things old school. END
 TITLE: How Does a Money Order Work? CONTENT: When Should I Use a Money Order?\n--------------------------------\nMoney orders are an alternative when you need to pay for something with a check but don't have a checking account. They're also useful if you'd rather not disclose your banking information to the party you're paying—or you're leery of sending that information through the mail. Sending money to someone in another country? Money orders can be a good way to dispatch guaranteed funds internationally.\nBecause a money order is like a prepaid check, landlords and other vendors may view money orders as a safer way to accept payments. Money orders have benefits to payers as well: You can track a money order to verify payment and make sure it landed in the right hands. You can also cancel a money order, just as you would a check.\nBut money orders aren't foolproof. They can be subject to scams (more on that in a bit). They can also be pricey and inconvenient, especially if you use them regularly to pay bills and do routine transactions. Opening a basic checking account can help eliminate the need for frequent money orders. You might also consider using electronic payment platforms like Zelle, your bank's online bill pay system or the payment features on selling sites like eBay. They can help you send and receive funds securely without the time and hassle of purchasing and mailing a money order. END
 TITLE: How Does a Money Order Work? CONTENT: Where Can I Get a Money Order?\n------------------------------\nMoney orders are available in a surprisingly wide variety of places. Your bank or credit union probably offers them, but so do many supermarkets, retailers like Walmart, gas stations, convenience stores and the post office. Check any of these locations near you to find options.\nA few things to consider: If you're sending money to another country, make sure the money order provider you're using will work in that country. Also, most providers limit the size of money orders you can purchase. For example, the largest money order you can buy through the USPS is $1,000. If you're trying to pay a $2,500 bill, you'll need two $1,000 money orders and one for $500. END
 TITLE: How Does a Money Order Work? CONTENT: How Much Do Money Orders Cost?\n------------------------------\nFees for money orders vary based on where you purchase them. For instance, USPS charges $1.30 for money orders up to $500 and $1.75 for money orders with a value of $500.01 to $1,000. Fees at Walmart top out at $1, whereas bank fees may run as high as $5, though these fees may be waived for account holders. Expect to pay a bit more if you're sending money internationally.\nPlan to use cash or a debit card to cover the full value of your money order plus fees. Some providers will allow you to purchase a money order with your credit card, but this should be your option of last resort. Your credit card issuer will likely consider your purchase a cash advance, which makes it subject to fees and higher interest rates. END
 TITLE: How Does a Money Order Work? CONTENT: How to Fill Out a Money Order\n-----------------------------\nFilling out a money order isn't difficult, but it's important to be accurate because you can't alter a money order once it's completed. Most critically, make sure the name of the person or business you're paying is spelled correctly. The recipient will be required to show ID when they cash the money order, so a mismatched name won't work. Be prepared to list your address in the purchaser's section and to sign the money order to complete the process.\nOnce you're done, keep the receipt: You'll need it to track your money order and confirm that it's been cashed or deposited. You'll also need your receipt to cancel the money order if it gets lost or stolen, or to prove to the recipient that you purchased the money order in the first place. END
 TITLE: How Does a Money Order Work? CONTENT: How to Avoid Money Order Scams\n------------------------------\nUnfortunately, money orders aren't scam-proof. Be sure you're aware of potential money order scams, especially if you've received a money order from someone you don't know. Most scams involve people sending fake money orders, for instance to pay for an item you're selling or put a deposit on a vacation rental. In a common scam, you may be asked to deposit the money and wire some of it back to the buyer, keeping a portion for yourself.\nThe danger comes when you deposit the fake money order and your financial institution credits your account. Eventually the bank will discover the fraud and reverse your deposit. At that point not only are you out the value of the money order, but you may also be liable for overdraft fees if your account goes negative. If you refunded the scammer any money, you are doubly out of luck.\nAlthough the $50 from Aunt Sue is probably legit, consider these steps to help reduce the chances of fraud if you have doubts about a money order you've received:\n*   **Verify funds.** You can contact Western Union, MoneyGram or the USPS directly to verify funds on a money order. Verification doesn't guarantee a money order is problem-free, but it can help weed out more obvious scams.\n*   **Look for signs of trouble.** Money orders have security features like heat-sensitive stamps, ink that runs when exposed to water or watermarks that are visible when held up to light. If your money order looks fishy—or counterfeit—don't honor it until you're certain it's real.\n*   **Get cash.** If you can, exchange the money order for cash before depositing it into your bank account. It may cost you a few dollars in fees ($4 is typical for a $1,000 money order), but you'll avoid the risk of reversed deposits—and the weeks of wondering whether the money order was legitimate. END
 TITLE: How Does a Money Order Work? CONTENT: A Time-Honored, Workable Option\n-------------------------------\nMoney orders are a valid way to exchange money when you're making a large purchase, putting up a security deposit or sending funds through the mail. If you need to purchase or cash a money order, check out your local options, including your financial institution, supermarket, local Walmart or even the post office. Money orders aren't necessarily the fastest or most secure payment choice in the digital age, but they're a workable, affordable option that doesn't require good credit or a bank account. END
 TITLE: How Will Payday Loan Changes Affect Me? CONTENT: Regulating the Payday Loan Industry\n-----------------------------------\nA payday loan is a small-dollar, high-cost loan borrowers often use to help make ends meet until their next paycheck. The loans typically feature short payback terms of two to four weeks, with heavy financial consequences if full repayment is not made on time. These loans often cause problems for consumers because of their expensive rates, high fees and balloon payment demands. (A balloon payment is a large payment due all at once at the end of the loan.)\nIn 2017, the CFPB enacted new rules to make payday loans safer for consumers. The final payday rule issued by the CFPB called payday-style loans \"unfair and abusive\" unless lenders took reasonable steps to make sure potential borrowers could afford to repay the loans as agreed. Some of those required steps have been removed under the new changes.\nThe CFPB's latest proposal comes on the heels of an April 2018 lawsuit in which two payday-lending trade groups sued the federal government in an effort to stop the rule they claim would destroy their business model. END
 TITLE: How Will Payday Loan Changes Affect Me? CONTENT: How Proposed Payday Loan Rule Changes Could Affect You\n------------------------------------------------------\nNow that the CFPB has proposed a rollback of certain parts of its 2017 payday loan rule, here's a look at how the new changes could affect you if you need to apply for a payday loan in the future.\n*   **Access to payday loans could be easier.** If you need a payday loan to make ends meet, you might have an easier time qualifying for one under the proposed changes.\n*   **Wider payday loan access could present more risk.** The CFPB rule rollback means there will be less federal oversight of payday lenders. Namely, you won't have to pass a full-payment test to determine upfront whether you can afford to repay a payday loan without re-borrowing. This means that you need to be extra careful to protect yourself if you take out a payday loan; otherwise, you could get caught in a debt trap with a loan you can't afford to pay off. END
 TITLE: How Will Payday Loan Changes Affect Me? CONTENT: The Downsides of Payday Loans\n-----------------------------\nPayday loans can help consumers with immediate cash flow problems, like covering the cost of a car repair when they don't have any emergency funds to draw on or a credit card they can use. Yet the loans often also come with a lot of unwanted baggage: annual percentage rates as high as 400% or more and fees as high as $10 to $30 for every $100 borrowed.\nPeople who lean on payday loans can find themselves in a vicious cycle whereby they have to extend the loans or take out new loans to pay the old ones off, incurring more fees and creating even bigger financial obstacles to overcome.\nIn states that allow the practice, borrowers may be allowed to roll over their loan into a new one with a later due date. States that do not allow roll-over loans may permit borrowers to renew or take out a new loan on the same day the old one is paid. If you renew or roll over your loan instead of paying it off by the due date, you'll pay a fee to essentially push your due date out. This fee is extra and doesn't reduce the principal loan amount you owe.\nAccording to the CFPB, over 80% of payday loans are rolled over or followed by another loan with 14 days. END
 TITLE: How Will Payday Loan Changes Affect Me? CONTENT: Payday Loans and Your Credit\n----------------------------\nAnother strike against payday loans is the fact that they won't help you to build positive credit. Why not? Payday loans generally don't appear on your credit reports.\nOf course, there is one exception to this rule. Payday loans might show up on your credit reports if you fall behind on your payments. If you go into default on a payday loan, the lender may sell your unpaid debt to a collection agency.\nOnce the debt is in the hands of a collection agency, there's a good chance it could show up on your credit reports with the three credit bureaus (Experian, TransUnion and Equifax). The collection account could remain on your credit reports for up to seven years, negatively impacting your credit scores and possibly making it harder, or more expensive, to qualify for new financing in the future. END
 TITLE: How Will Payday Loan Changes Affect Me? CONTENT: Should You Take Out a Payday Loan?\n----------------------------------\nIt doesn't look like payday loans will be going away anytime soon, but that doesn't mean they're necessarily a good choice for you. You'd probably be better off working with a bank or online lender if you find yourself in a position where you need to borrow money in an emergency.\nYou also shouldn't assume that payday loans are your only option, even if you don't have the best credit rating right now. There are lenders that specialize in working with people with bad credit, albeit usually at a higher cost. And while interest rates on a bad credit personal loan may be steeper than what you'd be getting with better credit, they're still likely more affordable than a payday loan.\nAs a rule of thumb, only consider turning to a payday lender after you've exhausted all of your other options. END
 TITLE: Where Can I Get a Money Order? CONTENT: Places to Purchase a Money Order\n--------------------------------\nSome popular places to purchase money orders include:\n*   **Retail stores**: Convenience stores, drugstores, supermarkets and grocery stores may sell money orders, often by acting as agent locations for Western Union or MoneyGram.\n*   **Banks and credit unions**: Banks and credit unions generally sell money orders to their customers.\n*   **Payday lenders and check-cashing stores**: Similar to retail stores, the money orders that payday lenders and check-cashing stores sell may come from Western Union or MoneyGram.\n*   **The U.S. Post Office**: The USPS also sells money orders, including military money orders from military facilities. END
 TITLE: Where Can I Get a Money Order? CONTENT: How to Fill Out a Money Order\n-----------------------------\nThe exact steps for filling out a money order can depend on where you're buying a money order and who you're sending the payment to, but it's a fairly straightforward process. The money order will include:\n1.  The recipient's information: You generally need to fill in the recipient's information when you buy the money order. Make sure you spell the person's or organization's name correctly.\n2.  Your information: You also need to add your full name and possibly your address to the money order. You may be identified as the purchaser, sender, remitter, drawer or there could be a space next to \"from.\"\n3.  Your signature: There may be a space on the front of the money order to sign.\n4.  Account or memo information (optional): You may have the option of adding a description of what the payment is for, or the account number of the bill you're paying.\nIf it's your first time purchasing a money order, you can also ask the person selling the money order for guidance. Once the money order is processed, you'll get a receipt that serves as your proof of purchase and may include tracking information, which you can use to see if the recipient cashed the money order. Having the receipt can also help you cancel your money order in case it's lost or stolen. END
 TITLE: Where Can I Get a Money Order? CONTENT: How Much Does a Money Order Cost?\n---------------------------------\nThe fee you'll pay for a money order can depend on where you buy it and the amount it's for.\nFor example, at the Post Office, you can buy a domestic money order ranging in amount from 1 cent to $500 for a fee of $1.30, but a money order that's $500.01 to $1,000 costs $1.75. (Postal military money orders have a flat fee of 45 cents.) At Walmart locations, there's a maximum fee of $1 per money order.\nBanks and credit unions might charge higher fees, such as $3 or $5 per money order. However, customers with certain types of accounts—including high-tier accounts that require a large balance—might get money orders for free.\nWhen you buy the money order, you'll need to pay the entire amount upfront. Be prepared to pay with cash or debit, as you may not be able to pay for a money order with a credit card. If you are allowed to pay for the money order with a card, your credit card issuer might charge you a cash advance fee.\nThere's also generally a $1,000 limit per money order. If you want to get one for a larger amount, you may need to purchase several money orders. Or, if you have a bank account, a cashier's check could be a good alternative. END
 TITLE: Where Can I Get a Money Order? CONTENT: When Should I Use a Money Order?\n--------------------------------\nThere are many situations when using a money order could be a good idea:\n*   You don't have a bank account and don't want to pay bills with cash.\n*   The recipient requires you to pay a bill with a money order or cashier's check.\n*   You want to send a check, but are worried that you don't know when it will be cashed and whether it will overdraw your account.\n*   You want to send a check-like payment that's easy to track and cancel.\nBut at times, other payment methods may make more sense. For instance, if you're sending money to a friend or family member, digital services like Zelle, Venmo or PayPal offer free and secure electronic transfers. You may also be able to pay bills directly from your bank account, either with an electronic transfer or by having your bank send a check to the creditor. END
 TITLE: Where Can I Get a Money Order? CONTENT: Beware of Scams\n---------------\nWhile money orders can be a convenient, secure and inexpensive way to transfer money or pay bills, these qualities also make them a favorite tool of scammers. Watch out for money order scams, which often involve scammers sending you a fake money order. It may take several days to discover the forgery, and, in the meantime, you've already sent the scammer a product or \"refunded\" part of the payment. END
 TITLE: Should I Pay My Credit Card Bill Early? CONTENT: You probably already know how important it is to make your credit card payments by their due date every month. That's because late payments can hurt your credit score more than any other factor.\nWhat you might not know is the fact that shifting your payment schedule ahead by a week or two can actually help your credit score. The reason has to do with the nature of credit card billing cycles, and their relationship to your credit report. END
 TITLE: Should I Pay My Credit Card Bill Early? CONTENT: Will Paying My Credit Card Bill Early Affect My Credit?\n-------------------------------------------------------\nThere's a persistent misconception that carrying a credit card balance from month to month can help you improve your credit score. That's simply not true. Paying your balance in full will not harm your credit score, and carrying a balance typically means you pay interest charges, so it's best to pay off your balance each month if you can afford to do so.\nFurthermore, carrying a balance that exceeds about 30% of a card's borrowing limit (also known as 30% utilization), can actually pull your credit score down, which you should avoid whenever possible.\nThat brings up the potential benefits of paying your credit card bill ahead of schedule. If you make a payment to your account before your card's statement closing date, instead of on or before its payment due date, you can lower the utilization percentage used to calculate your credit score. Here's how it works.\nThe statement closing date (the last day of your billing cycle) typically occurs about 21 days before your payment due date. Several important things happen on your statement closing date:\n*   Your monthly interest charge and minimum payment are calculated.\n*   Your statement, or bill, is generated and posted to your online account management page (and mailed to you, if you haven't opted for paperless billing).\n*   Your outstanding balance at the end of the billing cycle is recorded and eventually reported to the national credit bureaus—Experian, TransUnion and Equifax.\nEach card issuer reports to the bureaus on different schedules, and information is often released in a staggered fashion: first to one bureau, then the next, and finally to the third. As a result, bureaus seldom have identical data on all your accounts, which is why a credit score based on data from one bureau will differ on any given day from a score calculated the same day using data from another credit bureau.\nBy making a payment before your statement closing date, you reduce the total balance the card issuer reports to the credit bureaus. That in turn lowers the credit utilization percentage used when calculating your credit score that month. Lower utilization is good for your credit score, especially if your payment prevents the utilization from getting close to or exceeding 30% of your total credit limit.\nEven better, if your card issuer uses the _adjusted-balance_ method for calculating your finance charges, making a payment right before your statement closing date can save you money. The adjusted-balance method bases your interest charge on your outstanding balance at the close of the billing cycle, so a last minute payment can make a big difference in your finance charges for that period. (If your card issuer uses the more common _average daily balance_ method, which adds up your balances on each day of the billing cycle and divides the sum by the number of days in the cycle, payments made right before the statement closing date have less impact on finance charges.) END
 TITLE: Should I Pay My Credit Card Bill Early? CONTENT: Understand Your Billing Cycle\n-----------------------------\nThe imprecision in noting that your payment due date is _about_ 21 days before your payment due date has to do with a discrepancy between billing cycles and payment dates. The law requires that your bill be due on the same date each month, and of course the number of days in each month varies, but the number of days in each credit billing cycle is the same. Different card issuers use cycles of anywhere from 28 to 31 days.\nYou can check the length of your card's billing cycle in your cardholder agreement, or simply calculate the number of days between the start and end dates for the billing period listed on your card statement. The next statement closing date will be that many days from the billing period end date, no matter when your next payment is due.\nThe grace period for payments on most credit cards means you pay no interest charges as long as you pay the full amount that appears on your account statement each month. If you can afford to pay your balance in full every month, doing so before your monthly statement closing date has the benefit of ensuring that no outstanding card balance is reported to the credit bureaus—which can boost your credit scores.\n### When \"Early\" Payments Should Be \"Extra\" Payments\nIt's critical to note that \"early\" payments made before your statement closing date apply to the billing cycle in which you make them. If your payment eliminates your entire balance, that's fine, but if a balance remains, you'll still have to make a minimum payment by the due date listed on your next statement to avoid being considered late on your bill.\nFor that reason, if you routinely carry credit card balances from month to month, it may be better to think of pre-closing date payments as _extra_ payments, rather than _early_ ones. Making multiple payments to credit card accounts is a time-honored approach to keeping a lid on your debts and promoting good credit scores. END
 TITLE: Should I Pay My Credit Card Bill Early? CONTENT: When Is the Best Time to Pay My Credit Card Bill?\n-------------------------------------------------\nThe only bad time to pay your credit card bill is after your payment is due—a mistake that can have significant negative repercussions for your credit score. But paying your bill in full before your statement closing date, or making an extra payment if you'll be carrying a balance into the next month, can help you cultivate a higher credit score by reducing the utilization recorded on your credit report—and save you some finance charges to boot. END
 TITLE: How Do I Get a Credit-Builder Loan? CONTENT: 6 Steps to Getting a Credit-Builder Loan\n----------------------------------------\nApplying for a credit-builder loan is surprisingly fast and fairly simple. Follow these six steps to get a credit-builder loan:\n### 1\\. Check Your Credit Reports and Scores\nEven though credit-builder loans are designed for people with poor or no credit, lenders will usually still review your credit reports and scores before approving you for a loan. You should do the same. Find out where you stand by getting a free copy of your credit report.\n### 2\\. Gather What You Need\nBefore completing the application, spend a few minutes gathering the necessary information and documentation. Each lender will have its own criteria, but you'll typically need to provide the following information:\n*   Pay stubs, tax returns or other proof of income\n*   A valid bank account number and routing number\n*   Social Security number\n*   Valid U.S. address\n*   Phone number\n*   Address\n*   Form of ID, such as a driver's license\n*   Monthly mortgage or rental payment\n### 3\\. Figure Out Where to Get a Credit-Builder Loan\nWhile you won't usually be able to apply for a credit-builder loan at large national banks, there are several different lenders that offer these loans:\n*   **Credit unions**: Many credit unions offer credit-builder loans, though you'll need to become a member before you apply. Credit unions, which are nonprofit financial institutions that return profits to members, typically offer low interest rates and favorable terms. Look for a credit union near you that you may qualify for.\n*   **Banks**: While most national and international banks do not offer credit-builder loans, regional and local banks often do.\n*   **Lending circles**: With peer lending circles, participants qualify for interest-free loans, and payments are reported to the credit bureaus. They offer a way to obtain no-interest loans whose payments are reported to the three credit bureaus, thus helping you build credit. The nonprofit financial marketplace Mission Asset Fund can help you find a lending circle in your area.\n*   **Online lenders**: Online lender Self Financial offers credit-builder accounts, in which you make payments toward a savings fund. It offers repayment terms as long as two years, and you'll pay a one-time sign-up fee of $9 to $15, depending on the loan amount.\n### 4\\. Understand the Terms and Conditions of the Loan\nBefore agreeing to a credit-builder loan, make sure you review the terms and conditions. There are some factors you should keep in mind:\n*   **Grace period**: Some loans have a grace period, or a time period before you have to start making payments on the loan.\n*   **Prepayment**: Most lenders don't charge prepayment penalties. However, if you close your account ahead of schedule, you may lose out on months of payment history—the whole purpose for taking out the loan.\n*   **Loan term**: Make sure you're comfortable with the loan term and monthly payment. The payment should fit comfortably within your budget so there's no danger of missing one.\n### 5\\. Apply for the Loan\nOnce you're comfortable with a lender, you can move forward with your application. In most cases, you can fill out an application online. Or, if you're working with a brick-and-mortar credit union or bank, you can submit your application in person. The application takes just a few minutes to complete.\n### 6\\. Start Making Payments and Building Your Credit\nOnce your loan is in place, you can start making monthly payments. For the credit-builder loan to work as designed, it's essential that you make all of your payments on time. Your payment history accounts for 35% of your credit scores; miss just one payment, and your credit could suffer. END
 TITLE: How Do I Get a Credit-Builder Loan? CONTENT: When you take out a credit-builder loan, you're approved for a certain amount—usually $300 to $1,000—and you make payments on that amount for six to 24 months, depending on your specific loan's terms. You'll pay principal and interest on the loan, but you may get some of that interest back once you've completed your payments.\nThe longer the loan term, the more you'll pay in interest. However, you may decide that a longer term is worth it because you'll have a more affordable monthly payment. Remember that the point of a credit-builder loan is to build credit history, and you won't be able to do that if you set payments you can't afford.\nOnce you've repaid the loan, the lender will release the loan amount to you. That money is yours to use as you wish. You could use it to finance a big purchase, pay down other debt or build up your savings account. END
 TITLE: How Do I Get a Credit-Builder Loan? CONTENT: Other Options to Build Credit\n-----------------------------\nCredit-builder loans aren't for everyone. Luckily, there are other ways to build your credit if you have little or no credit history:\n*   **Apply for a secured credit card**: A secured credit card is like a credit card with training wheels. You provide a deposit, and that becomes your credit limit. This allows you to establish good credit habits, while providing lenders with a low-risk way to help you do it.\n*   **Become an authorized user**: If you have a financially responsible friend or relative with good credit, ask them to add you as an authorized user to their credit card account. You'll get access to that account's payment history, which could boost your score if the primary cardholder keeps the balance low and pays their bill on time every month.\nCredit-builder loans can be excellent tools for building credit. However, make sure you understand how they work and what the costs are so you're not surprised by interest charges and other fees. END
 TITLE: What Happens After a Balance Transfer? CONTENT: The strategy behind a balance transfer is fairly straightforward: You pay off the balance on one or more existing credit card or loan balances using a new credit card.\nAs long as the interest rate on the new card is lower than the older one, you'll save some interest charges, but you'll really save big if the new card offers a 0% annual percentage rate (APR). This \"teaser rate\" is temporary, and typically lasts just six to 12 months before the card's standard interest rate is applied to all outstanding balances. If your credit is very good or exceptional, you may see offers for balance transfer cards with considerably longer introductory periods; at least one credit card issuer recently touted a 21-month intro period. END
 TITLE: What Happens After a Balance Transfer? CONTENT: Make The Most of the Intro Rate\n-------------------------------\nThe key to getting the most out of a balance transfer is to use that introductory period to pay down as much of your transferred debt as possible. A good way to start is to divide the total transferred balance by the number of months in the introductory period to determine the amount you'll have to pay every month to eliminate the balance by the time the interest rate increases.\nAs an example, let's say your new card offers a 0% interest rate on balance transfers for nine months. If you use it to pay off a $3,000 balance on one card and a $2,000 on another and pay a standard 3% transfer fee on those balances, your new card will have a starting balance of $5,150. Divide that amount by nine months and you get a rate of $572 per month to pay it off in full before the interest rate increases.\nIf you can cover that monthly amount for the duration of the introductory period, you should try to do so, even if it's a stretch, because that'll let you zero-out your debt without paying any additional interest. In rare instances, cardholder agreements stipulate that if you don't pay off your transfer balance before the end of the introductory period, you'll be charged interest on the entire transfer balance, just as if the transfer had been a regular purchase. Check the fine print in your card terms, and if that's the case, avoid using the card for balance transfers unless you're extremely confident you can pay them off in the allotted time.\nIn all other instances, if you can't manage the full monthly portion, take a look at your household budget and dedicate as much as you can to paying down the balance while the teaser interest rate is in effect. Even paying interest on whatever balance remains, you will still have reduced your total cost significantly. END
 TITLE: What Happens After a Balance Transfer? CONTENT: Keep an Eye on Your Credit Score\n--------------------------------\nIt's generally a good idea to get in the habit of monitoring your credit score as an indicator of your overall financial health, and doing so during a focused effort to pay down debt can be a great motivator. Be aware, however, that using a balance transfer could cause your credit score to dip some before it starts to climb. There are a couple of reasons for that:\n*   Any time you apply for and open a new loan or credit card account, your credit score typically drops a few points, both because your lender performs a hard inquiry to check your credit before deciding whether to accept your application and because, in the statistical analysis used by credit scoring systems, whenever you increase your overall borrowing limit, you are considered at greater risk of being able to pay your bills. After a few months of keeping up with your payments, your score will likely recover from this dip.\n*   The balances transferred to your new card may give it a high utilization rate. Credit scoring systems such as the FICO® Score☉ and VantageScore® consider a measurement known as a credit utilization ratio, or how much of your available credit you're using, when calculating your scores. Experts recommend staying under about 30% utilization to avoid hurting your credit score.\nScoring systems give heavy consideration to your overall utilization—the sum of all of your credit card balances divided by the sum of all your borrowing limits—but they also look at the utilization for each of your individual cards. Making a balance transfer generally reduces your overall utilization by increasing your overall borrowing limit without adding to your outstanding balances. But if the utilization on your old cards was under 30% and the transfers (plus fees) make the utilization on the new card exceed 30%, your credit score may decline as a result.\nThese initial score dips are normal and, like all declines in credit score, reversible. Within a few months of a concerted effort to pay down your debt, you can expect to see your score increase—as long as you resist the urge to add to your credit card balances. END
 TITLE: What Happens After a Balance Transfer? CONTENT: Manage Your Old Credit Cards Wisely\n-----------------------------------\nUsing a balance transfer to concentrate and attack credit card debt is effective, but only if you avoid running up new debt as you pay off the old. That's where temptation can creep into the picture: Those cards you paid off when you made your balance transfer may start whispering from your wallet, insisting that just one purchase or shopping trip will hardly matter on a card with a zero balance. But any payments you have to make on an older card divert funds from your transfer balance.\nIf you find it hard to resist the lure of an unused card, consider taking it out of your wallet, but unless you're paying a high annual fee on the card, you should probably think twice about closing it. Closing a credit card account reduces your total borrowing limit and increases your overall utilization, which has an adverse effect on your credit score. END
 TITLE: What Happens After a Balance Transfer? CONTENT: Avoid New Purchases With Your Balance Transfer Card\n---------------------------------------------------\nIt's not just the old cards that you have to worry about when thinking about running up balances. Making purchases on the card to which you've transferred your balances is a bad idea as well, for several reasons:\n*   For starters, it's obviously counterproductive to add to a balance you're trying to pay down.\n*   Many cards that offer balance transfers at low or 0% introductory rates charge their regular interest rates on new purchases. Putting new charges on such a card during the intro period essentially creates two separate balances on the account—one for new purchases accruing interest at the normal rate and another for the transferred balance at the teaser rate. This can be confusing and makes it harder to see progress toward lowering overall debt.\n*   In cases where two separate interest rates apply to balances, card issuers may apply your payments to the zero-interest portion of the balance first. In that case, you'd accumulate interest charges on any new purchases you make until you've paid off your entire transferred balance. If your balance transfer card works that way, it'll likely make more sense to use a different card if you absolutely must use one for an emergency expense. END
 TITLE: What Happens After a Balance Transfer? CONTENT: Beware of Serial Balance Transfers\n----------------------------------\nIf you still have outstanding credit card debt as the clock ticks down on the intro period on a balance transfer card, you might think about getting another balance transfer card to cover whatever remains from your last transfer.\nThere's nothing to stop you from looking into that option, but there are some concerns you should be aware of if you're considering it:\n*   If the promotional period on your balance transfer card is relatively short (six to nine months), your credit score may be only just fully recovering from the natural dips associated with establishing new credit—and applying for another card will cause your score to dip all over again. You'll have better chances of improving your borrowing terms if you wait at least 12 months and give your credit scores more time to reflect the results of your debt reduction efforts.\n*   Credit card issuers are wary of applicants who seek low interest transfer cards while maintaining high levels of debt, so if you haven't made a good dent in your overall debt level since receiving your last balance transfer card, you may have difficulty qualifying for another one. END
 TITLE: What Happens After a Balance Transfer? CONTENT: Develop Good Credit Habits\n--------------------------\nUsing a balance transfer to attack debt is a smart way to work toward better credit, but it's not the only one. So if you're trying to increase your credit scores, there are a number of tips to keep in mind, including:\n*   **Pay your bills on time.** This is the single most important factor affecting your credit score. If you have trouble remembering when bills are due, consider using calendar reminders, scheduled automatic payments and other digital tools to help keep your payments timely.\n*   **Maintain low (or no) balances on your credit cards.** When possible, pay your credit balances in full each month, which spares you interest charges and also promotes higher credit scores. Also, try to keep your card balances at or below about 30% of your borrowing limit to avoid pulling your credit score downward.\n*   **Keep older credit card accounts open.** Unless they carry expensive fees, keeping these cards open will preserve your amount of available credit and lengthen your credit history, both of which help your credit scores.\n*   **Consider enrolling in the** **Experian Boost™† program.** This allows your timely payments on utility and cellphone bills to be reflected favorably in your Experian credit score.\nA balance transfer card can be a great vehicle for reducing overall debt and helping improve your credit scores. Making the most of a low or 0% introductory rate can save you big on interest charges, as long as you avoid the lure of taking on additional debt while paying down your transfer balance. END
 TITLE: How to Lower Your Credit Card Interest Rate CONTENT: Take Stock of Your Situation\n----------------------------\nBefore you approach your card issuers to ask for lower interest rates, you'll want to take stock of the rates you're currently paying. You can find them listed on your statement, in the top rows of the table known as the \"Schumer box.\" The entry for \"Annual Percentage Rate (APR) for Purchases,\" which affects daily charges and related balances, is the one to focus on when seeking rate reductions. Note this figure for all of your open credit card accounts.\nIn addition, if there's urgency in your desire for lower interest rates—if you're unexpectedly unemployed, for example, or have experienced a medical emergency or other circumstances that create a financial hardship, you can include that information along with your request for an interest rate reduction. Be prepared to explain the situation clearly, briefly and in a matter-of-fact fashion.\nIt's also helpful to take a look at your financial situation with a mind toward the way credit card issuers do business and the reasoning they apply when setting interest rates. Credit scores are designed to predict the likelihood you'll fail to pay back your debts, with lower scores corresponding to a greater likelihood of payment failure. Lenders tend to view customers with lower credit scores as riskier to work with, and they charge them higher interest rates to compensate for the extra risk. So if you're looking for lower interest rates, one way to make a case for them is to show you've increased your credit score. END
 TITLE: How to Lower Your Credit Card Interest Rate CONTENT: Work on Your Credit\n-------------------\nTo that end, take a look at your credit score and check your credit reports. Correct any errors, but also verify that you've gone at least 12 months without any late or missed payments before you try to plead for an interest rate cut. If you have a sense of what your credit score has been in the past, and can confirm it has increased, that's great. Otherwise, start tracking your score each month to document improvements. Then take a look at some steps you can take to improve your credit score.\nApart from keeping all your payments timely, one area to focus on is your credit utilization. Do your best to pay down any high account balances and try to get outstanding balances (on each individual card and across all accounts collectively) below about 30% of their respective borrowing limits. The lower the rate the better, but experts agree that utilization levels greater than 30% can drag down your credit score. For the best scores, keep your utilization at 6% or lower. END
 TITLE: How to Lower Your Credit Card Interest Rate CONTENT: Do Additional Research\n----------------------\nAnother way to gather evidence to help your case is to check offers from other card issuers to see if they are proffering lower rates than the ones you're currently paying. Look for offers you may have seen in the mail or email solicitations, and also consider looking into offers suggested through Experian CreditMatchTM. Make sure you're comparing their everyday purchase rates (not temporarily low introductory rates) to the rates you want lowered. If you consistently see offers for cards with lower rates than those you currently pay, there's a good chance your credit standing has improved. END
 TITLE: How to Lower Your Credit Card Interest Rate CONTENT: Have a Strategy Before You Call\n-------------------------------\nWhen you've compiled your evidence and are ready to make your case, start calling your card issuers one by one, using the customer service number printed on your card. There's no need to plan every word you'll say, but it's a good idea to have a general outline of what to say and do:\n*   Give the customer service rep a brief recap of your history with the company: how many years you've been a cardholder, how long you've been making monthly on-time payments, and so on. Tell them you're seeking an interest rate reduction, and briefly state the reasons you think you deserve one (credit score improvements, offers you're receiving for cards at lower rates, financial hardships and the like).\n*   If the rep tells you they can't change your interest rate, ask to speak to a supervisor who might have greater authority. Be polite but firm and persistent. Negotiating your interest rate is a perfectly reasonable thing to do.\n*   If you're told a rate cut isn't possible, consider asking for a temporary reduction. This can be an especially effective and helpful tactic if you're seeking relief from a financial setback.\n*   Consider telling the issuer you'll cancel the card if they're unwilling to work with you—but only if you're prepared to follow through on that promise. Note that the account will need to be paid in full before you close it, so this approach may ring hollow if you have a high balance on the card. Also keep in mind that cancelling a card reduces your total borrowing limit and will increase your overall utilization if you have outstanding balances on any other cards.\nTake careful notes during each call, recording the date, time and names of any people you speak to. If your efforts are unsuccessful, you can plan to try again in three to six months, and your notes may come in handy. END
 TITLE: How to Lower Your Credit Card Interest Rate CONTENT: Prioritize Cards by Age or Interest Rate\n----------------------------------------\nIf you've had a credit card for a while and have a solid record of timely payments, that history can give you some leverage. Try calling the issuer of the card you've had the longest. Explain that you have made on-time payments for several years and ask whether they would consider reducing your interest rate by a few points.\nStick to your call outline. If you're successful, you'll gain confidence and additional evidence to use when speaking with other card issuers. If your efforts don't pay off this time, try another card issuer.\nConsider focusing on the cards with the highest interest rates and working your way down the list through those with lower rates. Or, if your outstanding balances are concentrated on just one or two cards, consider trying to get those interest rates reduced first, even if their rates aren't the highest.\nNo matter what, plan on calling every card issuer. You never know which will be open to reducing your interest rates, and any decrease in interest rate will allow more of your payment to go toward paying off the principal you owe and reducing your overall debt. END
 TITLE: How to Lower Your Credit Card Interest Rate CONTENT: Don't Give Up\n-------------\nIf your efforts at getting an interest rate reduction don't pan out, don't despair. Continue paying your bills on time and paying down your balances, and plan on trying to renegotiate again in a few months' time.\nIn the meantime, to strengthen your negotiating hand, consider looking into a balance transfer credit card that you can use to pay off one or more of your accounts in full. If you call a card issuer and tell them you've just paid off your card in full or are about to do so, they may take your promise to close your account more seriously than if you've got a sizable balance on the card.\nCredit card issuers know it's hard to gain customers, and they hate to lose them, so eventually you'll likely have some success in your negotiations. END
 TITLE: How to Recover From Bankruptcy CONTENT: Check Your Credit Reports\n-------------------------\nBegin your recovery plan with a clear understanding of where your credit stands. Do this by checking your credit reports, reviewing them for accuracy, and disputing any entries that need correction. This process will be slightly different depending on which type of bankruptcy you file.\n### Checking Your Credit Reports After Chapter 7\nIf you filed Chapter 7 bankruptcy, wait until your case is discharged—you'll receive a letter from the court informing you when that's done, usually no more than six months after your court filing. Wait 90 to 120 days after receiving the letter so your credit reports have time to update with the bankruptcy information, and then request your credit reports from all three national credit bureaus (Experian, Equifax and TransUnion). You can get a free Experian credit report every 30 days. You are also entitled to one free report a year from each of the three credit bureaus at AnnualCreditReport.com.\nReview your reports carefully for accuracy and dispute any entries that need correction, taking care to note that:\n*   All credit accounts covered under the bankruptcy are labeled \"discharged in bankruptcy\" (not \"charged off\") and list outstanding balances of zero dollars.\n*   If any debts were excluded from the bankruptcy filing, such as a mortgage, make sure they are not listed as discharged, and that payments are being reported.\n### Checking Your Credit Reports After Chapter 13\nIf you filed Chapter 13 bankruptcy, your case won't be discharged until the end of your three-to-five-year repayment period, so you can just wait 90 to 120 days after your bankruptcy filing to request your credit reports.\nThe status of accounts included in your Chapter 13 repayment plan may or may not be reflected in your credit report: Creditors are not obligated to report payments received during the Chapter 13 repayment period, but some do.\n*   Check to make sure payments to any accounts excluded from the bankruptcy settlement are being captured.\n*   Once your repayment period ends—two and a half to five years after you file Chapter 13, depending on the terms of your repayment plan—you'll receive a notice that your case has been discharged. Wait about 120 days and then check all your credit reports. Make sure all loans settled under the repayment plan are closed and list zero balances. END
 TITLE: How to Recover From Bankruptcy CONTENT: Check Your Credit Scores\n------------------------\nIf you haven't done so already, sign up for a service, such as the one from Experian, that lets you check your credit scores for free. Your scores may not paint a pretty picture, but depending on how recently you filed your bankruptcy plan, they may not yet be at their lowest point: Your scores will decline significantly when you file bankruptcy, and if you file Chapter 7, they may dip further once the court has discharged your case—a process that can take several months (and which may not be reflected in your credit file for several weeks after that). A Chapter 13 bankruptcy isn't considered discharged until the end of the court-approved repayment period.\nIf overdue or defaulted credit accounts significantly hurt your credit scores before you turned to bankruptcy—a situation common to many filers—you may find that filing for bankruptcy has less impact on your scores than you might have imagined, if only because your scores had already fallen about as far as they could. Some individuals with heavily damaged scores even see small score _increases_ after filing Chapter 13 bankruptcy—but their scores are still likely to be in poor territory. That can be a hard fact to face, but facing it is exactly how to begin your credit recovery plan. END
 TITLE: How to Recover From Bankruptcy CONTENT: Avoid Repeating Past Mistakes—and Making New Ones\n-------------------------------------------------\nYou can make your bankruptcy a learning experience by reviewing your past missteps and taking care not to repeat them. Re-examine your old patterns of spending, borrowing and repayment (or lack thereof) to better understand exactly what led you to bankruptcy, and take steps to ensure you won't go down those paths again.\nConsider working with a certified credit counselor to devise a realistic budget, set achievable money management goals, and establish a long-term plan for rebuilding your credit.\nBeware credit repair companies that promise to help re-establish your credit in short order, or clean up your credit report quickly. There are no quick fixes for bankruptcy. Rebuilding your credit after you've filed for bankruptcy takes time and patience. Millions have done it, and you can too. END
 TITLE: How to Recover From Bankruptcy CONTENT: Work on Rebuilding Your Credit\n------------------------------\nOnce you have a solid sense of your credit picture, plan to monitor your credit scores monthly and check your credit reports annually. You can then take steps to begin building up your credit. Start by reviewing the factors that determine your credit scores, and habits that help them improve, and then consider these tried-and-true tactics:\n*   **Take out a credit-builder loan at your local credit union**. As the name implies, these loans are designed to help people establish or rebuild credit. The amount you borrow—typically no more than $1,000—is placed in a special savings account, where it earns interest but is inaccessible to you until the loan is paid in full. You make a fixed payment (with interest) each month for a set period ranging from six to 24 months, after which the funds are yours. (Some credit unions also let you keep some or all of your interest payments.)\n    As long as you pay on time every month—and after a bankruptcy you should vow never to make a late payment again—your payments will appear as positive entries on your credit report and will tend to increase your credit score. To get the maximum benefit to your payment history, consider asking for the longest-available repayment period. That'll add to the total interest you'll pay, but if you're keeping the interest payments anyway, that just means you'll save a little extra.\n*   **Get a secured credit card**. Another product popular at credit unions, but also offered by some banks and other institutions, secured credit cards do not require traditional credit checks. To get one, you must put down a cash deposit, and that sum typically becomes your borrowing limit. If you fail to pay your bills, the lender can take the deposit. If you use the card sparingly, but use it every month and always pay off your balance in full, you'll establish an additional pattern of positive payments on your credit report. A good trick for making this work is to use the card for a payment that recurs every month—such as a phone bill, gym membership and the like, and then set up an automatic payment to the card account through your checking account.\n*   **Consider credit card offers**. After you've logged a year or two of positive payments via a credit-builder loan, a secured credit card or both, start watching your inbox and mailbox for credit card offers. The pickings may be slim: borrowing limits low, interest rates relatively high and fees less than ideal. But if you apply for and get a card, you can begin proving you can handle mainstream credit. As with a secured card, use your new card sparingly but regularly, to create a pattern of on-time payments.\nThere Is Life After Bankruptcy\n------------------------------\nIf you follow these steps, and take care to avoid repeating past missteps, you'll find that your credit scores will begin improving within a few years after your bankruptcy filing. And by the time the bankruptcy \"falls off\" your credit report after seven or 10 years (you don't need to do anything to remove it), you may find yourself eligible for a wide range of credit, at reasonable rates. END
 TITLE: How to Recover From Bankruptcy CONTENT: There Is Life After Bankruptcy\n------------------------------\nIf you follow these steps, and take care to avoid repeating past missteps, you'll find that your credit scores will begin improving within a few years after your bankruptcy filing. And by the time the bankruptcy \"falls off\" your credit report after seven or 10 years (you don't need to do anything to remove it), you may find yourself eligible for a wide range of credit, at reasonable rates. END
 TITLE: Good Reasons to Get a Personal Loan CONTENT: When to Consider a Personal Loan\n--------------------------------\nThe list of potential uses for personal loans is nearly endless, but prime circumstances when you might want to consider taking one out include:\n*   **Combining pricey credit card balances.** If you're carrying high balances on multiple credit cards, they're probably costing you a lot in interest payments, and they're likely lowering your credit score as well. Using a personal loan to pay off your credit cards, a process known as debt consolidation, can let you simplify multiple bills into one, reduce your interest charges and improve your credit score.\n*   **Emergency expenses.** If your house needs a new roof in a hurry or your furnace goes kaput, you may be able to cover the costs on a credit card. But big-ticket repairs can lead to high card balances that hurt your credit score and rack up big interest charges. The same can be true of medical emergencies: An injury or illness that requires forking over your full annual deductible in one payment could overtax your credit cards, and related expenses that aren't covered by your health care plan can add up fast. Using a personal loan to help manage these expenses can take a little stress out of the situation.\n*   **Personal events.** When mounting a pricey one-off event like a wedding, golden anniversary gala or even in some cases a funeral, a personal loan can provide a ready pool of cash to help deposits and payments for caterers, florists, venue rentals and the like.\n*   **Home remodeling.** When making a major improvement to your home, such as a kitchen remodel or expansion of your master bathroom, financing options often come down to a choice between a personal loan and a home equity line of credit (HELOC). If your credit is solid and you've been in your home long enough to have sufficient equity, you may be able to get a somewhat better interest rate and a higher spending limit with a HELOC, but home equity loans carry the risk of losing your home if you're ever unable to make payments. If you prefer not to use your home as collateral, or if you've only been in the house a few years, a personal loan could be a great financing option. END
 TITLE: Good Reasons to Get a Personal Loan CONTENT: When a Personal Loan Might Not Be a Good Idea\n---------------------------------------------\nAs flexible as personal loans may be, there are several purposes for which it doesn't make sense to use one:\n*   **College tuition.** Dedicated student loans make more sense than personal loans for financing college education for a few reasons:\n*   Interest rates, especially on government-backed student loans, tend to be lower than those on personal loans.\n*   While student loans typically don't require a first payment until some months after the borrower has completed their studies, personal loan repayment begins right away, with the first payment typically due one month after the loan is issued.\n*   While most personal loans are issued on a \"no strings attached\" basis, some lenders explicitly forbid using them for college expenses.\n*   **Financing a car.** Auto loan interest rates are typically lower than those on personal loans because the vehicle serves as collateral on car loans.\n*   **Paying for vacation.** Once-in-a-lifetime events such as a honeymoon getaway or a just-retired grand tour might be grounds for taking out a personal loan (provided you have the means to repay it), but most experts agree it's best to fund regular vacations by setting aside household funds, and to plan the scale of your getaway accordingly: Some years you may be able to jet to the islands; other years the budget might call for a road trip or stay-cation.\nApplying for a personal loan is a fairly straightforward process, and many lenders now allow you to apply online, so you can (and should) check with multiple sources to try to shop for the best interest rates and fees. For each application, you'll need to indicate how much you want to borrow, and you'll need to submit information about your income, employment and, often, your outstanding debt and monthly expenses.\nMost lenders will check your credit score and credit reports as part of their lending decisions, so unless you're in an emergency situation, it makes sense to review your credit reports and scores so you'll have an idea what the lenders see when looking at your application.\nAs with virtually all types of personal credit, personal loan lenders reserve their lowest interest rates for people with excellent credit scores. If your credit is fair to good, finding a personal loan at a low rate may be challenging, and if your credit is on the low end of the spectrum, you may need to take the time to build up your credit scores before you can qualify for a personal loan.  \nHow a Personal Loan Can Affect Your Credit\n------------------------------------------\nWhen you apply for a personal loan, lenders typically will perform a hard inquiry on your credit report to review your credit history and check your credit score. This causes a relatively small dip in your credit score, which typically recovers within a few months, as long as you keep up with all your bill payments. (If you apply to multiple lenders for a loan of the same amount in a short period of time, credit scoring systems such as the FICO® Score☉ and VantageScore will treat them all as a single event, so your score will only dip once.)\nYour score may dip slightly again after you've been issued your personal loan, but your score will rebound quickly as long as you keep up with your payments. If you don't keep up with your personal loan payments, your credit score will suffer a much deeper decline, as missed and late payments are the single biggest factor affecting your credit scores.\nIf a personal loan sounds like something that will help you meet your financial needs, consider using Experian's CreditMatch™ tool to browse loan offers matched to your credit profile. Whether you'll use the funds to get through a time of stress or to pay for a joyous occasion, a personal loan can be a great tool for managing expenses. END
 TITLE: Good Reasons to Get a Personal Loan CONTENT: Applying for a personal loan is a fairly straightforward process, and many lenders now allow you to apply online, so you can (and should) check with multiple sources to try to shop for the best interest rates and fees. For each application, you'll need to indicate how much you want to borrow, and you'll need to submit information about your income, employment and, often, your outstanding debt and monthly expenses.\nMost lenders will check your credit score and credit reports as part of their lending decisions, so unless you're in an emergency situation, it makes sense to review your credit reports and scores so you'll have an idea what the lenders see when looking at your application.\nAs with virtually all types of personal credit, personal loan lenders reserve their lowest interest rates for people with excellent credit scores. If your credit is fair to good, finding a personal loan at a low rate may be challenging, and if your credit is on the low end of the spectrum, you may need to take the time to build up your credit scores before you can qualify for a personal loan. END
 TITLE: Good Reasons to Get a Personal Loan CONTENT: How a Personal Loan Can Affect Your Credit\n------------------------------------------\nWhen you apply for a personal loan, lenders typically will perform a hard inquiry on your credit report to review your credit history and check your credit score. This causes a relatively small dip in your credit score, which typically recovers within a few months, as long as you keep up with all your bill payments. (If you apply to multiple lenders for a loan of the same amount in a short period of time, credit scoring systems such as the FICO® Score☉ and VantageScore will treat them all as a single event, so your score will only dip once.)\nYour score may dip slightly again after you've been issued your personal loan, but your score will rebound quickly as long as you keep up with your payments. If you don't keep up with your personal loan payments, your credit score will suffer a much deeper decline, as missed and late payments are the single biggest factor affecting your credit scores.\nIf a personal loan sounds like something that will help you meet your financial needs, consider using Experian's CreditMatch™ tool to browse loan offers matched to your credit profile. Whether you'll use the funds to get through a time of stress or to pay for a joyous occasion, a personal loan can be a great tool for managing expenses. END
 TITLE: Till Debt Do Us Part? How Marriage Affects Debt CONTENT: Whose Debt Is It, Anyway?\n-------------------------\nExactly how spouses share responsibility for debts taken on after marriage depends in part on state laws, and in part on the type of debt you take on after your wedding day.\n### Debt in Community Property States\nIf you live in one of the nine community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin) or Alaska, where newlyweds can opt in to community property rules (but seldom do), debt assumed during your marriage is understood to be \"community\" responsibility, with each spouse under equal obligation for repayment. No matter whether both spouses agreed to the debts, or even whether both knew about them, both are equally responsible to cover them.\n### Debt in Common-Law States\nIf you live in any of the other states, or choose not to opt in Alaska, your marital debt will follow common-law rules, which allow spouses to take on debt as individuals even after marriage. Common-law rules also allow for spouses to maintain separate bank accounts, borrow money as individuals, get car loans and credit cards accounts individually, and assume other debts individually.\nCommon-law rules assign joint spousal responsibility for debts that benefit the couple and their family equally, such as food and clothing or rent on a shared apartment. They also distinguish between debts applied for individually, by one spouse or the other, and debts applied for jointly, by both spouses together.\nIndividual debt, including credit card accounts and loans, must be in the name of one spouse only, which means the credit application reflects only that spouse's credit score, income, employment history and so on. Whichever spouse's name is on the account is generally held responsible for repaying it. Put another way, the spouse whose name _isn't_ on the debt is protected from having to cover it.\nJoint debt may be incurred during marriage in a common-law state if both spouses apply for a loan or credit together. In that case, both spouses' credit scores are considered in the lending decision, along with both spouses' incomes and assets. If both spouses' names appear on the loan (mortgage contract, credit cardholder agreement, auto loan note, etc.), both are equally responsible for repayment under common-law rules. END
 TITLE: Till Debt Do Us Part? How Marriage Affects Debt CONTENT: How Do I Deal With My Spouse's Debt?\n------------------------------------\nWhether or not your state says all your marital debts are conjoined, you and your spouse inevitably will incur some debt together. Even if you live in a common-law state, you may choose to apply for a mortgage or other loans with your spouse so that both of your incomes can be considered in the lending decision application. All this intermingling of debt means both of your attitudes and habits with respect to debt will definitely affect your marriage. Whether it affects the relationship for good or ill is largely a matter of openness and communication.\nBefore the wedding (and continuing at regular intervals afterward), you and your betrothed should determine where you stand financially. Discuss the debts you'll each bring into the marriage, your credit histories, any anxieties you may have around borrowing money or paying bills, and whether or not you've ever gotten in over your head with credit cards or other types of debt.\nOnce you know where you stand, you and your future spouse should talk about priorities in dealing with debts—both the ones you take on together and the ones you bring with you into the marriage. Among potential considerations:\n*   Making the spouse most comfortable with debts and money management the \"payment captain\" (or, perhaps, agreeing to get together monthly to review and pay the household bills).\n*   Determining how much of the joint household funds to allocate each month to cover mutual debts.\n*   Ensuring each spouse can keep up with (and eventually pay off) their individual debts.\n*   Deciding how to handle future debt (for a new home, vacation property, credit cards and so on).\nThese discussions can help you come up with strategies for managing your debt as a couple. For instance, couples who plan to apply for credit jointly in the future might choose to use pooled household funds to pay down one spouse's individual credit card bill, even if the debt is one spouse's alone. END
 TITLE: Till Debt Do Us Part? How Marriage Affects Debt CONTENT: Does My Spouse's Debt Affect My Credit Score?\n---------------------------------------------\nGetting married cannot directly affect your credit score because the data on which those scores are based—compiled in your credit reports at the three national credit bureaus (Experian, TransUnion and Equifax)—do not include any information about marital status. Spouses retain their individual credit reports and credit scores after marriage; there's no such thing as a couple's credit report.\nHowever, because both spouses' credit reports and scores are considered whenever a couple applies for a loan or credit card together, if you or your spouse has a poor credit history, that could affect your ability to borrow money jointly. And if you take out a loan or a credit card account jointly with your spouse, you're both equally responsible for the payments. So if, for instance, one spouse goes on a spending spree with a jointly held credit card, the other is on the hook for paying it, even if they disapprove of the purchase.\nThat's one reason why, before saying \"I do,\" it's a good idea to have an open discussion about all kinds of financial matters, including debt. Spouses should enter the marriage with a clear understanding of their respective debt profiles (and credit standing), and a plan for managing future debt they take on together. END
 TITLE: What Credit Score Do I Need To Get A Car Loan? CONTENT: Do All Auto Lenders Use the Same Credit Score?\n----------------------------------------------\nAuto lenders don't just decide for themselves which numerical credit scores may qualify you for a loan—they also get to choose which scoring model to use. Some use the traditional FICO® Score☉ that's also popular among mortgage lenders, credit card issuers and other lenders. Others use a VantageScore® model, which shares the score range of 300 to 850 used by the FICO® Score. Other credit scoring models, including specialty models designed specifically for auto lenders, use different scale ranges.\nThe FICO Auto Score, for example—a variation on the FICO® Score tailored to predict the risk of default on car payments—uses a score range of 250 to 900. Other specialty scoring models used by auto lenders may have still different ranges. END
 TITLE: What Credit Score Do I Need To Get A Car Loan? CONTENT: What Is the Minimum Credit Score Needed for a Car Loan?\n-------------------------------------------------------\nAll credit scoring models, including those built specifically for auto lenders, use higher scores to indicate greater creditworthiness. But it goes without saying that any given numerical score could mean different things on different scoring ranges. A score of 650 on a scale of 300 to 850 means something different from a 650 on a scale of 250 to 900, for instance.\nWithout knowing the applicable scale, it's impossible to interpret any credit score correctly. That's why anytime you are denied a car loan or charged an interest rate higher than the best one available when you're offered your auto loan, the lender (or dealer) is required by law to notify you what score you received as well as an explanation of the scoring model that was used and its scale range.\nThe wide range of credit scoring models and scoring criteria used by auto lenders is one good reason to be sure you shop around when you're ready to apply for a loan. Check with several different lenders (or make sure the dealership's finance office does) to make sure you're getting the best interest rate and payment terms that you qualify for. Applying for a loan typically causes a small dip in your credit score that will recover after a few months as long as you don't miss any bill payments. But credit scoring models, recognizing the importance of comparing offers for the best loan terms you can get, generally treat multiple applications for loans of the same type and amount as a single event, so there's no penalty for shopping around. END
 TITLE: What Credit Score Do I Need To Get A Car Loan? CONTENT: How to Improve Your Credit Score Before Applying\n------------------------------------------------\nWhile you can't know for certain which scoring model(s) a given car lender will use, it's a good idea to check your credit score before you start applying for auto loans. If your FICO® Score is good or better, you're unlikely to have trouble getting approved for a car loan. If it's in the fair range, you'll likely qualify as well, though you may have to settle for an offer that carries higher interest charges or fees or requires a relatively high down payment.\nIf you're worried you won't qualify for a loan with good terms, try to improve your credit before applying for a car loan. Here are some suggestions for improving your credit, which will tend to bring improvements on any credit score, regardless of the model used:\n*   **Pay your bills on time.** Even one late payment can hurt your credit score significantly. Ideally, you should try to be sure your recent credit history (the last 12 months, at least) is free of late payments before you apply for a new loan.\n*   **Pay down outstanding credit card balances.** Credit scores are highly sensitive to your credit utilization ratio—the amount of credit you're using relative to your total credit limits. To figure out your utilization rate, divide your total credit card balances by your total credit limits. The lower your utilization, the better. If you currently have a utilization rate over 30%, paying down credit card balances could be a quick way to increase your credit scores. For the best scores, keep your utilization under 6%.\n*   **Keep credit card accounts open.** Closing accounts, even on a card you never use, will lower your available credit and increase your utilization rate. If you're trying to get rid of a card to avoid paying its annual fee, try to hold off until after you've secured your car loan, and then wait a few months and apply for a new (no-fee) card with a spending limit equal to or greater than the card you want to close to avoid reducing your overall borrowing limit.\n*   **Hold off on other loan applications.** Whenever you apply for a new loan or take on additional debt, your credit scores dip. So it may be best to avoid new credit card or loan applications until after you buy a car.\n*   **Consider consolidating credit card debt.** If you can't afford to pay down your credit card balances, you could apply for a debt consolidation loan and use the money to pay off your credit cards. Installment loans, such as personal loans, don't affect your utilization rate, so transferring debt from credit cards to a personal loan could improve your scores—as long as you don't then charge up those cards again. Personal loans typically charge lower interest rates than credit cards as well, so this move can be a money-saver too.\n*   **Check your credit reports** **for errors.** Double-check your reports from the three credit bureaus for errors that may be hurting your scores and file a dispute if you find one. The credit bureau must investigate your claim and either validate, update or delete the information.\n*   **Consider enrolling in Experian Boost™†** : This program allows you to share utility and phone payment information so it can be factored into your FICO® Score based on data from Experian. Many individuals see an instant increase in those scores, and that could benefit you with some auto lenders.\nThese actions could improve all of your credit scores, which can make it easier to get approved for an auto loan with a favorable rate. END
 TITLE: What Credit Score Do I Need To Get A Car Loan? CONTENT: Keep Your Eyes on the Road\n--------------------------\nThe variety of credit scoring options and lending standards in use by auto financers and other lenders can make the road to a car loan seem treacherous and twisty. But if you check your credit report and score, take a few steps to polish up your score if you need to, and shop around for the best loan you can get, you'll find you can navigate the process easily, and you might even get a great deal in the bargain. END
 TITLE: Understanding Loan-to-Value Ratio (LTV) CONTENT: How to Calculate LTV\n--------------------\nTo determine your LTV ratio, divide the loan amount by the value of the asset, and then multiply by 100 to get a percentage:\nLTV = (Amount owed on the loan ÷ Appraised value of asset) × 100\nIf you're buying a house appraised at $300,000 and your loan amount is $250,000, your LTV ratio at the time of purchase is: ($250,000\/$300,000) x 100, which equals 83.3%.\nIn other words, the LTV ratio is the portion of the property's appraised value that isn't covered by your down payment. If you put 15% down on a loan that covers the rest of the purchase price, then the LTV is 85%.\nLenders and federal housing regulators are most concerned with LTV ratio at the time the loan is issued, but you can calculate LTV at any time during the loan's repayment period by dividing the amount owed on the loan by the property's appraised value. As you repay the loan, the amount owed decreases, which tends to lower LTV. If the value of your property increases over time, that also reduces LTV. But if the property's value drops (if housing prices fall significantly in the local market, for instance), that can push LTV higher.\nWhen an LTV ratio is greater than 100%, a borrower is considered \"underwater\" on the loan—that is, when the market value of the property is less than the balance owed on the loan. LTVs greater than 100% are also possible early in the repayment period, on loans with high closing costs. END
 TITLE: Understanding Loan-to-Value Ratio (LTV) CONTENT: How Does Loan-to-Value Ratio Affect Interest Rates?\n---------------------------------------------------\nU.S. lenders typically follow a practice known as \"risk-based pricing,\" which involves setting higher interest rates on loans they determine to be relatively risky. This leads to borrowers with subpar credit being charged more than those with excellent credit, and it applies to LTV as well: Since a high LTV ratio means more risk to the lender, loans with high LTVs typically come with higher interest rates.\nHigher interest rates aren't the only way in which a high LTV can cost you.\nIf you're buying a house with a conventional loan—that is, a mortgage that's not backed by a federal program—an LTV ratio greater than 80% may mean you're required to buy private mortgage insurance (PMI), which covers the lender against loss if you fail to repay your loan. PMI typically costs between 0.5% to 1% of the loan amount every year, and must be paid until your LTV ratio drops to 78%. So, if your loan is $250,000, you can expect to pay between $104 and $208 extra every month until that happens. END
 TITLE: Understanding Loan-to-Value Ratio (LTV) CONTENT: What Is a Good LTV?\n-------------------\nIf you're taking out a conventional loan to buy a home, an LTV ratio of 80% or less is ideal. Conventional mortgages with LTV ratios greater than 80% typically require PMI, which can add tens of thousands of dollars to your payments over the life of a mortgage loan.\nSome government-backed mortgages allow you to get away with very high LTV ratios. For example, the minimum down payment for a Federal Housing Administration (FHA) loan is 3.5% (LTV ratio of 96.5%). Loans through the U.S. Department of Agriculture and the Department of Veterans Affairs don't require any down payment at all (100% LTV). Those loans typically require a forms of mortgage insurance or include extra fees in the closing costs to offset the risk connected with their higher LTVs.\nLTV ratio is a less crucial factor with auto loans. While you might pay higher interest on a car loan with a higher LTV ratio, there's no threshold comparable to the 80% LTV that earns the best mortgage loan terms. END
 TITLE: Understanding Loan-to-Value Ratio (LTV) CONTENT: How to Lower Your LTV\n---------------------\nGenerally speaking, reducing LTV on your loans, especially on mortgage loans, means lower total costs over the life of the loan. Because there are only two variables that determine LTV ratio—the loan amount and the value of the asset—the approaches to reducing LTV are pretty straightforward:\n*   **Make a larger down payment.** Saving for a big down payment may test your patience if you're really eager to get into a house or car, but it can be worth it in the long run.\n*   **Set your sights on more affordable targets.** Buying a home that's a little older or smaller than the house of your dreams could allow your current savings to serve as a larger portion of the purchase price.\nWhether you're applying for an auto loan or a mortgage, it's important to understand how your LTV ratio affects overall borrowing costs, what you can do to decrease LTV, and how doing so can save you money over the lifetime of a loan. END
 TITLE: What Is a Jumbo Loan? CONTENT: The Difference Between Jumbo and Conforming Loans\n-------------------------------------------------\nFor 2019, in most of the continental U.S., the conforming loan limit is $484,350. In Alaska, Hawaii, certain U.S. territories, and specific counties in the lower 48 states where home prices are exceptionally high, the limit can be as much as $726,525, or 150% of the national median. You can check the conforming loan limit for all U.S. counties at the FHFA website.\nA mortgage for an amount greater than the local conforming limit is considered a jumbo loan.\nJumbo loans typically come with strict credit requirements and an even more rigorous review of applicant finances than conventional mortgages. END
 TITLE: What Is a Jumbo Loan? CONTENT: How Does a Jumbo Loan Work?\n---------------------------\nTo understand how a jumbo loan works, it's helpful to understand the purpose of \"conforming loans,\" which have a lending limit that's exceeded by jumbo loans: The Federal Housing Finance Agency (FHFA), which regulates Fannie Mae and Freddie Mac, was created during the Great Depression to make sure mortgage lenders have sufficient cash available to lend to Americans who want to buy a home. To that end, the FHFA authorizes Fannie and Freddie to purchase loans from banks, credit unions and other lenders, but only if those loans meet specific criteria aimed at protecting the GSEs from loss in case borrowers fail to repay the loans. One of those criteria is that the mortgages cannot exceed the conforming loan limit, which the FHFA sets annually for each county in the U.S.\nFannie Mae and Freddie Mac combine batches of conforming loans into financial instruments called mortgage backed securities (MBS) that investors buy and sell in public markets, much like stocks. The GSEs use the proceeds from MBS sales to buy and securitize even more mortgages. Lenders use money from the sales of loans to Fannie and Freddie to offer more mortgages, and the process continues.\nThe ability to sell a mortgage to Fannie Mae or Freddie Mac is a kind of safety net or guarantee for the lender, so when considering applications for jumbo loans, financial institutions typically are extra cautious in their efforts to verify applicants' ability to repay the loan. END
 TITLE: What Is a Jumbo Loan? CONTENT: Credit Score and Requirements Needed for a Jumbo Loan\n-----------------------------------------------------\nThe applicant-vetting process on jumbo loans may vary by lender (and applicant), but requirements over and above those for conventional mortgages may include:\n*   **Higher credit scores.** Many lenders require a FICO® Score☉ of 720 or better for many jumbo loans, and typically will accept no score lower than 660, whereas lenders may accept scores as low as 600 for conforming mortgages.\n*   **Larger down payments.** While lenders may approve conventional mortgages with down payments as low as 5% with the inclusion of private mortgage insurance (PMI), jumbo loan issuers typically require down payments of 20% or even as high as 30%. Down payments greater than 20% preclude the need for PMI, but in the rare instance where a lender accepts a down payment lower than 20%, PMI may be required on a jumbo loan just as it is on conforming mortgage loans.\n*   **Greater cash flow.** Mortgage lenders typically look for a debt-to-income (DTI) ratio—calculated by dividing monthly debt payments by gross monthly income—of no more than 36% when issuing jumbo mortgage loans. In contrast, DTIs as high as 50% are acceptable on some conforming mortgages.\n*   **Additional assets.** As a safeguard against the possibility of missed payments on jumbo loans, lenders often require applicants to prove they have access to savings or other liquid assets sufficient to cover as much as one year of loan payments.\n*   **Higher interest rates.** The additional risk associated with non-conforming loans typically leads lenders to bump up interest by 1 or 2 percentage points on jumbo loans compared with the prevailing rates on conventional loans.\n*   **Additional appraisals.** In addition to the standard property appraisal required for any mortgage loan, jumbo lenders may require a \"second opinion\" appraisal to confirm the property's market value. Because properties subject to jumbo loans are often large and unusual in comparison with neighboring properties, each appraisal is likely to be more expensive than one on a more traditional property.\n*   **Higher closing costs.** To help cover the cost of the more extensive verification process required for jumbo loans, lenders typically charge a higher percentage of the purchase price (i.e., more \"points\") as a loan origination costs. END
 TITLE: What Is a Jumbo Loan? CONTENT: When Does It Make Sense to Get a Jumbo Loan?\n--------------------------------------------\nIf you want to buy a luxury home, or one with amenities that make it significantly more expensive than the average home in your community or county, a jumbo loan may be your only option for financing the purchase. Applying for a jumbo loan only makes sense if you have the financial resources needed to pass the rigorous qualification process, including a credit score of about 700 or better and sufficient liquid assets to cover a down payment of 20% or more, origination fees, appraisal(s) and at least six months of payments on the loan. END
 TITLE: What Is a Jumbo Loan? CONTENT: When Should Jumbo Loans Be Avoided?\n-----------------------------------\nYou may want to avoid a jumbo loan if you doubt your ability to meet its stiff qualification requirements. In addition, if you feel you may need to resell the property quickly at some point in the future, you may want to consider how energetic the local real estate market is. If the market is slow, or if the property is vastly more expensive than most neighboring properties, it may prove difficult to resell. Even in vigorous markets, potential buyers will likely be subject to the same lengthy mortgage-vetting process you'd have to go through as a buyer, and that can lengthen the amount of time required to complete the sale.\nQualifying for a jumbo mortgage can be a daunting process, and the loan will likely be costly in terms of interest rates and fees even for applicants with very good credit. If your sights are set on an exceptionally expensive property, and you have the means to qualify, a jumbo loan may be the best option for financing your dream home. END
 TITLE: What Is a Subprime Mortgage? CONTENT: How Do Subprime Mortgages Work?\n-------------------------------\nSubprime mortgages are home loans with pricing (i.e., interest rates and fees) tailored to relatively high-risk borrowers, also known as subprime borrowers. Experian defines subprime borrowers as those with a FICO® Score☉ of 580 to 669, but lenders define subprime according to their own criteria. Lenders in different housing markets around the country set minimum credit score requirements as they see fit and may define subprime using other creditworthiness criteria as well.\nThis underscores the importance of shopping around for mortgages and any other type of consumer credit. Because different lenders use different lending criteria, it's possible, depending on your credit scores, that you'll be slotted for a subprime mortgage by one lender but qualify for a conventional mortgage with another.\nThe pricing on subprime mortgages can vary by mortgage type (see below), but all subprime mortgages have some attributes in common:\n*   **High closing costs.** Lenders offset the risk of lending to borrowers with subpar credit by collecting high processing fees upfront. Origination fees on conventional mortgages typically fall between 0.5% and 1% of the total loan amount, but may be a percentage point higher on subprime loans.\n*   **High interest.** Rates on subprime mortgages are typically several percentage points higher than those on conventional mortgages—a difference that can cost you tens of thousands of dollars over the lifetime of the loan.\nWhen you apply for a mortgage, you do not need to specify whether you are seeking a subprime or prime loan. You simply submit an application and, based on your credit reports, credit scores and other financial information, the lender will offer you a loan with the terms it thinks you deserve. If you are deemed a subprime borrower, the lending terms will reflect that in higher interest rates and fees. (If you are seen as a less risky applicant, you'll likely receive better rates and fees, and if your credit is poorer than what your lender considers subprime, your application may be declined altogether.)\nAside from pricing, subprime mortgages work much the same as conventional mortgages available to borrowers with better credit: The mortgage issuer reviews your credit, income and, possibly, your savings or other assets and decides how much it is willing to lend you. The lender offers you a loan at a specified interest rate with specific fees, to be paid in monthly installments for a set repayment period, such as 30 years. If you fail to make your loan payments, the lender has the right to foreclose—take back the house—and sell it in an attempt to recoup your lost payments. END
 TITLE: What Is a Subprime Mortgage? CONTENT: Types of Subprime Mortgages\n---------------------------\nHere are three types of subprime mortgages you may encounter:\n**Adjustable-rate mortgages (ARMs)**: ARMs start out at relatively affordable \"teaser\" rates then, after a specified introductory period (typically one year), shift to a floating rate tied to a published central-banking interest rate such as the Monthly Treasury Average Index (MTA Index or 12-MAT). This shift, which may occur annually, can strain household budgets and add significant unpredictability to home finances.\n**Extended-term mortgages**: These loans have repayment periods of 40 years or even 50 years instead of the 30 years typical of conventional mortgages. At comparable interest rates, a loan duration 33% to 67% longer than that of a conventional mortgage could cost you tens or even hundreds of thousands of dollars over the life of the loan. And of course interest rates on subprime mortgages are not comparable to those of conventional mortgages—they're typically higher, so the long repayment period has an even greater sting.\n**Interest-only mortgages**: With an interest-only mortgage, the borrower has the option, during the initial part of the repayment period—typically five to seven years—to pay only the interest due on the loan (without paying back principal). At the end of this intro period, the borrower can renew the loan or refinance and begin paying down principal.\nThe APRs are typically higher by half a percentage point or more on interest-only mortgages compared with comparable conventional loans; and origination fees on interest-only loans are often even higher than on other subprime loans.\nInterest-only mortgages tend to work best for borrowers who use interest-only payments as an emergency option. These borrowers routinely make full principal-and-interest payments and make reduced interest-only payments on months with unexpected expenses. Borrowers who exercise the interest-only payment option face greater risk of loss than conventional mortgage holders if they're forced to sell their home in a period of flat or falling property values.  \nWhat Are the Disadvantages of Subprime Mortgages?\n-------------------------------------------------\nThe main downside to a subprime mortgage is its high cost. The higher interest rates and fees that accompany a subprime mortgage can significantly increase the amount you'll pay for your home over the life of the loan.\nBy adding additional payments and stretching out the duration of the loan, extended-term mortgages can amplify the effects of those high interest rates. And adjustable-rate mortgages, with their regular recalculation of your mortgage interest rate, can make it difficult to predict and plan your household spending from one year to the next.  \nShould You Get a Subprime Mortgage?\n-----------------------------------\nAs the name implies, a subprime mortgage is less than ideal. That's not to say there aren't reasonable justifications to get one, such as to buy a home that's a rare bargain you don't want to let slip away. If you're on the path to rebuilding your credit and you're confident you can afford the payments, you may be right in taking out a subprime loan.\nIf you do, and you plan to stay in the house for more than a decade or so, consider refinancing your subprime mortgage five or 10 years in the future. By then, your income and credit profile may have changed in ways that make a more affordable conventional mortgage an option. Before doing so, review the numbers carefully (including the fees as well as the interest rates on a new mortgage) to make sure refinancing saves you money, but if you're able to swap a subprime loan for a conventional one, there's a good chance it will pay off.  \nConsider Improving Your Credit Score\n------------------------------------\nIf a subprime mortgage is all you qualify for today, and you're in a position to wait a year (or longer) before financing your first home, another option is to take steps today to improve your credit. That's also a good idea if you choose to pursue a subprime mortgage today with the goal of refinancing years from now. (Heck, it's a good idea if you plan to borrow money at any point in the future, for any reason.)\nAdopting habits today that promote improvements in your credit reports and credit scores can bring many benefits. Qualifying for better terms on loans and credit cards could save you thousands of dollars, but there are other advantages to good credit as well, including reduced insurance premiums and lower security deposits on apartment leases and on car and equipment rentals. END
 TITLE: What Is a Subprime Mortgage? CONTENT: What Are the Disadvantages of Subprime Mortgages?\n-------------------------------------------------\nThe main downside to a subprime mortgage is its high cost. The higher interest rates and fees that accompany a subprime mortgage can significantly increase the amount you'll pay for your home over the life of the loan.\nBy adding additional payments and stretching out the duration of the loan, extended-term mortgages can amplify the effects of those high interest rates. And adjustable-rate mortgages, with their regular recalculation of your mortgage interest rate, can make it difficult to predict and plan your household spending from one year to the next. END
 TITLE: What Is a Subprime Mortgage? CONTENT: Should You Get a Subprime Mortgage?\n-----------------------------------\nAs the name implies, a subprime mortgage is less than ideal. That's not to say there aren't reasonable justifications to get one, such as to buy a home that's a rare bargain you don't want to let slip away. If you're on the path to rebuilding your credit and you're confident you can afford the payments, you may be right in taking out a subprime loan.\nIf you do, and you plan to stay in the house for more than a decade or so, consider refinancing your subprime mortgage five or 10 years in the future. By then, your income and credit profile may have changed in ways that make a more affordable conventional mortgage an option. Before doing so, review the numbers carefully (including the fees as well as the interest rates on a new mortgage) to make sure refinancing saves you money, but if you're able to swap a subprime loan for a conventional one, there's a good chance it will pay off. END
 TITLE: What Is a Subprime Mortgage? CONTENT: Consider Improving Your Credit Score\n------------------------------------\nIf a subprime mortgage is all you qualify for today, and you're in a position to wait a year (or longer) before financing your first home, another option is to take steps today to improve your credit. That's also a good idea if you choose to pursue a subprime mortgage today with the goal of refinancing years from now. (Heck, it's a good idea if you plan to borrow money at any point in the future, for any reason.)\nAdopting habits today that promote improvements in your credit reports and credit scores can bring many benefits. Qualifying for better terms on loans and credit cards could save you thousands of dollars, but there are other advantages to good credit as well, including reduced insurance premiums and lower security deposits on apartment leases and on car and equipment rentals. END
 TITLE: How Do Debt Relief Companies Work? CONTENT: Debt relief companies are for-profit businesses that charge you to negotiate with your creditors (the lenders you owe money) on your behalf. Their goal is to get creditors to accept less than the full amount you owe in exchange for settling the debt.\nThese companies often tout the possibility of drastically lowering your outstanding debt. That may sound great, but the reality is that debt relief companies' tactics with vendors can decimate your credit standing. Here are some hard realities to consider about the ways they work:\nPrior to negotiating with your creditors, debt relief companies typically instruct you to stop making debt payments and instead make an agreed-upon monthly payment into a savings account they set up for you, often for a fee. After you've paid into the account for several months, the debt relief company approaches your creditors as your representative, essentially arguing that the creditors will be better off settling for partial repayment of your obligation than risking getting no payment at all. The implicit threat is that you're at the end of your financial rope, and that if you file for bankruptcy, lenders may be unable to collect anything you owe them.\nIf the debt settlement company is successful in its negotiations, it typically keeps 20% to 25% of your total debt as payment, and may charge you fees (for maintaining your savings account, for example) as it pays off the reduced debt on your behalf. END
 TITLE: How Do Debt Relief Companies Work? CONTENT: Why Is Debt Settlement Risky?\n-----------------------------\nDebt settlement is risky for several reasons:\n*   **Debt settlement will cost you.** Debt settlement can get expensive due to the fees that debt relief companies charge. In addition, if a settlement company succeeds in having your debt forgiven, the sum by which they reduce your debt may be treated as income for purposes of calculating your federal income tax. So depending on your earnings, tax bracket and available deductions, you could end up paying at least a chunk of the debt that was forgiven to the IRS.\n*   **Debt settlement damages your credit.** During the negotiation process, if you've suspended payments on the advice of the debt settlement company, your missed payments will be recorded on your credit report. Because payment history is the biggest factor in credit score calculations, a series of missed payments will do serious damage to your credit. Missed payments also may be grounds for creditors to file debt collection lawsuits against you, or to sell your debt to collection agencies. Accounts sold to collections appear as negative entries on your credit report.  \n    In addition, if a debt relief company succeeds in getting creditors to reduce your obligations to them, renegotiated debts appear on your credit report as \"settled accounts,\" and can remain on your credit report for up to seven years after you've paid them off. While less severe than bankruptcy or foreclosure, settled accounts are considered negative events in your credit history. Many lenders see them as grounds for caution when considering loan applications, and some lenders may decline applicants with settled accounts on their credit reports.\n*   **Debt settlement doesn't always work.** There's no guarantee that a creditor will agree to reduce your payment obligation. If they refuse, you won't pay the settlement company any fees connected with that debt, but you'll have lost time, possibly incurred late payment penalties that increase your debt, and you may have had late or missed payments reported to the credit bureaus. END
 TITLE: How Do Debt Relief Companies Work? CONTENT: How Does Debt Settlement Affect Your Credit Scores?\n---------------------------------------------------\nMost of the potential negative credit report entries associated with debt settlement—settled accounts, late or missed payments, transfer of accounts to collections agencies—can have significant negative effects on your credit scores. The severity of their impact will depend on the nature and number of negative entries on your credit report, and how high your score was before the negative events appeared. The negative score impact will be greatest when the entries are new, and their effect on your credit score likely will diminish over the course of years, even though some of the entries will stay on your credit report as long as seven years.\nEven worse, if debt settlement is unsuccessful, you may have no recourse but bankruptcy. That's probably the most severe negative event that can appear on a credit report, and depending on the type of bankruptcy settlement you file, it can remain on your credit report for seven or 10 years. Bankruptcy has a strong negative effect on credit scores. Like other negative credit events, a bankruptcy's impact on credit scores lessens over the span of years, but many lenders won't even consider lending to an individual with a bankruptcy on their credit report. END
 TITLE: How Do Debt Relief Companies Work? CONTENT: How Is Debt Relief Different From Debt Consolidation?\n-----------------------------------------------------\nDebt relief companies sometimes arrange for you to make a single monthly payment to them, from which they make payments to creditors on your behalf (and extract fees in the process). Settlement companies sometimes call this process \"debt consolidation,\" but that distorts the strict meaning—and benefit—of consolidating debts.\nDebt consolidation—a strategy you can pursue without paying any third parties for assistance—involves taking out a loan at a relatively low interest rate and using the borrowed funds to pay off debts with high interest rates. This allows you to replace multiple monthly bills with one predictable monthly payment, which can simplify your budgeting and bill-paying routines, and can also save you money by reducing the amount of interest you pay over time. END
 TITLE: How Do Debt Relief Companies Work? CONTENT: Debt Settlement Alternatives\n----------------------------\nThe alternatives to debt settlement will almost always save you money and help you avoid doing long-term damage to your credit as compared with turning to a debt relief company.\n*   **Debt consolidation loan**: As noted above, debt consolidation loans shift high interest debt to lower interest debt. If you qualify, a debt consolidation loan can be a highly effective way to lower long-term borrowing costs and get high interest debt such as sizable credit card balances under control.\n*   **Balance transfer credit card**: A potentially less expensive but somewhat riskier version of debt consolidation for those with good credit involves using a balance transfer credit card. This allows you to move debt from one or more high interest credit card accounts to a lower interest card account, such as one with a 0% introductory annual percentage rate (APR) on balance transfers. The fees and interest charges you could face if you don't pay off your balance transfer within the introductory period make this trickier than a simple debt consolidation loan, but it may be a good option for you.\n*   **Debt management programs**: Debt management programs may sound a lot like debt relief companies, but their approach, cost and potential benefits differ greatly. Debt management programs are provided by nonprofit organizations dedicated to assisting individuals in financial trouble. Debt management organizations provide credit counselors who can help you organize your budget and take control of your debts. Credit counselors, such as those certified by the National Foundation for Credit Counseling, may work with your creditors to come up with interest rate reductions or extended repayment schedules that can help you pay your debts in full without compromising your credit.  \n    If your income and other financial circumstances make it infeasible to pay even renegotiated debts, certified credit counselors can steer you toward filing for bankruptcy and help guide you through the process.\n*   **Bankruptcy**: If all other strategies fail, bankruptcy may be the only resort for overwhelming debts. Aside from the credit consequences—it can make it impossible for you to borrow money for years—bankruptcy can be emotionally difficult. It may be no worse than the stress of constant calls and letters from bill collectors, however, and it can allow for the eventual rebuilding of your credit and borrowing power. END
 TITLE: How Do Debt Relief Companies Work? CONTENT: The Bottom Line: Find a Better Option\n-------------------------------------\nWhether they call themselves debt relief companies, debt settlement companies or debt consolidation specialists, think twice before dealing with for-profit companies that promise big savings by renegotiating with debt with creditors. At best their services will come at considerable cost. They also put your credit at considerable risk and could still fail, leaving you with few alternatives besides bankruptcy. Instead, use one of the options above to help get your debts under control. END
 TITLE: Why Credit Education Is Important for Millennials CONTENT: Rising Debt, and Desire for Improvement\n---------------------------------------\nRecent research finds millennials are increasing their debt levels at rates that concern some experts:\n*   The New York Federal Reserve reported in February that millennial debt had increased 22% from 2013 to 2018, and now exceeds $1 trillion.\n*   Much of that debt consists of student loans, as the average millennial student loan balance among millennials was $34,504 in the first quarter (Q1) of 2019, up 8% from the first quarter of 2018.\n*   Millennials increased their average credit card debt by 7% in the past year, to $4,712. That's a relatively low average balance, but, given many millennials' relatively recent entry into the credit market, they may not be aware of the need to avoid high levels of credit utilization—the percentage of a card's borrowing limit represented by outstanding balances. Credit education can help millennials understand that credit scoring systems are highly sensitive to utilization, and that balances exceeding about 30% of borrowing limits can hurt credit scores.\n*   The average FICO® Score☉ for millennials is 668 as of Q2 2019, considerably lower than the U.S. average of 703. FICO categorizes a 668 credit score as \"fair.\"\nMany lenders view applicants with a 668 FICO® Score as subprime borrowers—eligible for a variety of loan types, but typically subject to relatively steep interest rates and fees. Credit education can help millennials see that increasing their credit scores by even a few points could lift them into \"prime\" credit territory, possibly making them eligible for a much wider array of loans and credit products under more affordable terms. END
 TITLE: Why Credit Education Is Important for Millennials CONTENT: Signs of Growing Awareness\n--------------------------\nA 2019 Experian Boost™† Consumer Survey found that millennials have a strong sentiment for improving their credit standing.\nAfter trying Experian Boost—a free tool that lets people share phone and utility payment information so it can be factored into their Experian credit scores, often providing an instant boost to their scores—survey participants reported the following:\n*   53% said they \"felt more motivated\" to learn about their credit scores\n*   59% said they believed knowing more about credit management would be beneficial\n*   59% wanted to learn about credit through features like Experian Boost END
 TITLE: Why Credit Education Is Important for Millennials CONTENT: Digital Tools and Credit Education\n----------------------------------\nRecent Experian research found that digital resources are highly effective at informing, educating and energizing millennial audiences, so it's fortunate that a growing number of financial institutions and credit card issuers are making web- and mobile-based credit education tools available to customers. Many of these resources are tied directly to users' credit reports, and can provide highly specific information about factors that are hurting their individual credit scores.\nMillennials (and users of all ages) can use these tools to improve their understanding of credit management and its relationship to credit scores and credit reports.\nOther credit education resources available free (to millennials and all consumers) include:\n*   Credit reports from each of the national credit bureaus (Experian, TransUnion and Equifax) are available to download free once every 12 months at AnnualCreditReport.com.\n*   You can check your FICO® Score based on Experian credit data and also review your Experian credit report for free at Experian.com.\n*   Consult Experian's credit education blog for more insights into making good credit decisions that in turn promote improvements in credit score and can help reduce the overall costs of loans and credit cards.\nMillennials are hungry for information that helps them understand the credit process and strategies for improving their credit. Fortunately, there are a number of resources available to boost their credit knowledge. END
 TITLE: Experian to Provide Free Credit Monitoring to Active Service Members CONTENT: Service Member Notification Process\n-----------------------------------\nOnce a service member enrolls in the program, the credit bureau will begin monitoring their report. If any of the material additions or modifications spelled out in the FTC rule are detected in a service member's credit file, the bureau that maintains the file must alert the service member.\nIf any service member discovers inaccurate information on their Experian credit report, they should use the Experian dispute process to correct the matter. If one or more new accounts are opened in the service member's name, they should notify the relevant financial institutions immediately, using the contact information that appears on their credit report.\nIf a service member discovers unauthorized credit activity, or has other reason to suspect their personal information has been compromised, they might be wise to freeze their credit files at Experian®, Equifax® and TransUnion®. This prevents others from opening any new loans or credit accounts in the service member's name until they decide to un-freeze (or \"thaw\") their credit files. A credit freeze can also be a reasonable precaution for a service member on remote assignment, even if no suspicious activity has been detected.\nService members alerted by the other credit bureaus of material credit file changes should follow any instructions that accompany the notification, or take the steps described here by the FTC. If there are indications of identity theft, such as newly opened accounts or loan applications, they can use information at identitytheft.gov to get started on recovery and find out how Experian can help protect their credit report. END
 TITLE: Experian to Provide Free Credit Monitoring to Active Service Members CONTENT: Who Is Eligible?\n----------------\nEligible participants in the program include full-time training duty, annual training duty, full-time National Guard, as well as those in the active service attending a school designated as a service school by law or by the secretary of the military department concerned. END
 TITLE: How to Get Preapproved for a Mortgage CONTENT: What Is a Mortgage preapproval?\n-------------------------------\nA mortgage preapproval is a document a lender produces to tell a home seller how much money you are authorized to borrow to buy a house. Additionally, a mortgage preapproval usually indicates the type of mortgage loan you qualify for, and the interest rate the lender would charge you upon completion of a mortgage application. The preapproval document states the lender's belief that it would approve your mortgage application based on the income and credit information you've submitted.\nThe information required to get a mortgage preapproval is the same that's required for a mortgage loan application. In fact, applying for preapproval is the same as applying for a mortgage loan: The lender will review your personal information, credit history, credit score, income, assets, debts, tax returns and employment history. It also requires you to authorize a lender to view your credit score and examine your credit report from one or more of the three national credit bureaus (Experian, TransUnion and Equifax). END
 TITLE: How to Get Preapproved for a Mortgage CONTENT: Mortgage Preapproval vs. Prequalification: What's the Difference?\n-----------------------------------------------------------------\nWhen you're shopping for mortgages, you'll likely encounter a process called mortgage prequalification, which should not be confused with mortgage preapproval. Mortgage prequalification generates an estimate of how much money you may be eligible to borrow—but no details on interest rates, fees and the like—after you answer a few quick questions online or over the phone about your income, assets and debts.\nMortgage preapproval is a much more formal process that requires you to complete a detailed mortgage application form (either hard copy or digital), submit supporting documentation to back up your financial claims, and undergo a thorough examination of your credit reports and scores. Because applying for mortgage preapproval is essentially the same as applying for a mortgage loan, you may also have to pay an application fee.\nSome real estate agents might like to see a mortgage prequalification before agreeing to work with you. But because a prequalification may not include any examination of your credit history or other documentation proving your finances, it won't carry nearly as much weight with sellers as a mortgage preapproval. END
 TITLE: How to Get Preapproved for a Mortgage CONTENT: What Do You Need for a Mortgage Preapproval?\n--------------------------------------------\nBecause mortgage preapproval requires submitting a mortgage application, it's a detailed process. Items you should be prepared to submit with your application include the following:\n*   **Personal details**: The lender will require proof of identity, such as a copy of a passport or a driver's license, and your Social Security number.\n*   **Permission for a credit check**: You'll also be asked to authorize access to your credit reports and your credit score. It's wise to check your credit report and credit scores yourself at least six months before starting the preapproval process to avoid surprises and to give you time to clear up any credit report inaccuracies that might be lowering your credit score.\n*   **Income information**: To document your income, you'll need to provide pay stubs, bank statements and tax returns for the past two years. If you are self-employed, the lender will average the annual incomes you reported on your tax returns for the previous two years.\n*   **Assets and debts**: Mortgage lenders typically like to see indications that you have resources available to cover your loan down payment and to help make your loan payments in case your employment status or income changes. Assets can include savings, investments and property you own. Outstanding loans and credit card balances will appear on your credit reports, but you'll also be asked if you have any other debts as well.\nNote that requirements for down payments and other assets may vary by loan type:\n*   Qualifying loans that meet the requirements for purchase by Fannie Mae and Freddie Mac, the federal government-sponsored enterprises that acquire most of the nation's single-family mortgages, require 20% of the purchase price as a down payment.\n*   Conventional mortgages obtained through banks, credit unions and mortgage brokers typically require a minimum down payment of 5% (but require purchase of private mortgage insurance if the down payment is less than 20%).\n*   FHA loans for first-time home buyers are backed by the Federal Housing Administration (FHA) and are available with down payments as low as 3.5%.\n*   VA loans issued to veterans, service members and their qualifying surviving spouses through the Department of Veterans Affairs (VA) are available with no down payment.\n*   USDA loans, available to low-income borrowers buying homes in rural areas of the U.S., are also available with no down payment.\nFinally, you may be asked to pay an application fee of up to several hundred dollars.\nLenders typically generate preapproval letters within a day of submitting your application. However, if you are self-employed, or if the lender requires additional verification of any part of the application, preapproval could take up to two weeks. END
 TITLE: How to Get Preapproved for a Mortgage CONTENT: How Long Does a Mortgage Preapproval Last?\n------------------------------------------\nYour preapproval letter will state that the preapproval is valid for a limited period of time, such as 60 or 90 days from the date it was written.\nThe lending terms spelled out in a preapproval document may not be guaranteed; sometimes a preapproval application fee includes a rate lock-in that's guaranteed for the life of the preapproval letter.\nAbsent that, if prevailing interest rates rise or your income or credit score drops between the preapproval process and when you apply for your mortgage, you may be charged a higher interest rate or offered a lower total loan amount than the one specified in the preapproval letter.\nIf you decide to finalize a mortgage from the lender that issued your preapproval, you may need to submit updated versions of that information to the lender before the loan can be completed. Whether that's required depends on the lender's policies and the amount of time between the preapproval and your acceptance of a loan offer. END
 TITLE: How to Get Preapproved for a Mortgage CONTENT: How a Mortgage Preapproval Affects Your Credit\n----------------------------------------------\nThe credit check required for a mortgage preapproval is identical to the one performed when you apply for a mortgage. This check is considered a hard inquiry on your credit report, which can temporarily lower your credit score a few points.\nIf you fill out several applications in the process of shopping for a new loan, credit scoring systems treat the credit checks related to those applications as a single event, as long as you make them within a few weeks of each other. Note that the various FICO® Score☉ models will combine inquiries made within the same 45-day period and treat them as one event; the VantageScore® system uses a rolling two-week window that resets each time you make a similar loan application within two weeks of the one that preceded it.\nThis allows you to shop around for the best possible terms without worrying that each credit inquiry will harm your ability to qualify for a new loan. END
 TITLE: How to Get Preapproved for a Mortgage CONTENT: An Important Part of the Homebuying Process\n-------------------------------------------\nObtaining a mortgage preapproval can be an important step in the homebuying journey. Providing a preapproval document with a purchase offer letter demonstrates to a home seller that you are ready to move forward quickly with a sale, and that you have the means and intention to do so. END
 TITLE: What Is Credit? CONTENT: How Credit Works\n----------------\nIn centuries past, creditors might have gauged your creditworthiness by reputation alone. Obviously, this method was subjective and prone to error, manipulation and bias. These days, creditors prefer a more objective approach. In the U.S., typically they look to your credit history—your record of borrowing and repaying funds—as a first step in determining whether to issue you credit.\nYour credit history is summarized in files known as credit reports, compiled by three independent credit bureaus—Experian, TransUnion and Equifax. Banks, credit unions, credit card issuers and other creditors voluntarily report your borrowing and repayment information to the credit bureaus.\nInformation in your credit report includes:\n*   The number of credit card accounts you have, their borrowing limits and current outstanding balances\n*   The amounts of any loans you've taken out and how much of them you've paid back\n*   Whether your monthly payments for your accounts were made on time, late or missed altogether\n*   More severe financial setbacks such as mortgage foreclosures, car repossessions and bankruptcies\nTo help narrow their lending decisions, creditors often use a three-digit number known as a credit score as the first step in deciding whether or not to issue credit. Your credit score distills the information on your credit reports to something that's easy to interpret, and does so in a fair way that minimizes the possibility of bias.\nSophisticated systems known as credit scoring models calculate your credit score by performing complex statistical analysis on the contents of your credit file. Different models, such as the FICO® Score☉ and VantageScore®, calculate scores differently, but all assign higher scores to individuals whose credit histories make them statistically more creditworthy than those with lower scores. END
 TITLE: What Is Credit? CONTENT: What Are the Types of Credit?\n-----------------------------\nThere are four types of credit:\n*   **Revolving credit**: With revolving credit, you are given a maximum borrowing limit, and you can make charges up to that limit. You must make a minimum payment each month, but otherwise the amount you pay can be any portion of your outstanding charges, up to the full amount. If you make a partial payment, you will carry forward the remainder of your balance, or revolve the debt. Most credit cards count as revolving credit.\n*   **Charge cards**: Once commonly issued by retailers for use exclusively in their establishment, charge cards are relatively rare these days. Charge cards are used in much the same way as credit cards, but they don't permit you to carry a balance: You must pay all charges in full every month.\n*   **Service credit**: Your contracts with service providers such as gas and electric utilities, cable and internet providers; cellular phone companies; and gyms are all credit agreements: These companies provide their services to you each month with the understanding that you will pay for them after the fact. Modern credit scoring systems, including the most recent versions of the FICO® Score and VantageScore, can factor your service payment history into your credit scores, but those payments are not always reported to the credit bureaus. The Experian Boost™† program enables you to share utility and cellphone payment records so they can be considered in credit scores based on Experian data.\n*   **Installment credit**: Installment credit is a loan for a specific sum of money you agree to repay, plus interest and fees, in a series of equal monthly payments (installments) over a set period of time. Student loans, car loans and mortgages are all examples of installment credit. END
 TITLE: What Is Credit? CONTENT: Why Do You Need Credit?\n-----------------------\nGood credit is necessary if you plan to borrow money for major purchases, such as a car or a home. Or maybe you want to take advantage of the convenience and purchase-protection a credit card can provide.\nA higher credit score can mean better interest rates and terms on loans and credit cards. Many card issuers also reserve their most enticing rewards cards for customers with great credit.\nLenders aren't the only ones who concern themselves with your credit reports and credit scores:\n*   Landlords may check your credit when deciding if they'll rent you an apartment or determining how large a security deposit to require.\n*   Insurance companies may use your credit scores as factors in determining your rates.\n*   Utility companies may check your credit before deciding to let you open an account or borrow equipment.\n*   Prospective employers may use information found in credit reports to make a hiring decision.\n*   Your credit report can even be used to verify your identity, and for other purposes defined by federal law.\nCredit is a tool that can help you buy things you need now and pay for them over time. Establishing and building up good credit over time is an important element of sound financial health. END
 TITLE: What Is a VA Loan? CONTENT: How Does a VA Loan Work?\n------------------------\nBanks, credit unions and mortgage lenders issue VA loans with the understanding that the VA will cover a big portion of the lender's loss if the borrower fails to repay the loan.\nWhen you take out a VA loan, the government provides you an entitlement (or guarantee) of up to 25% of the value of a home you're buying as your family's primary residence, up to a maximum value based on the cost of local housing.\nTo determine that maximum value, the VA uses purchase-price limits—known as conforming loan limits—that apply to mortgages backed by other government home loan agencies. You can look up those limits, which are subject to annual revision, at the Federal Housing Finance Agency's website.\nThe 2019 baseline limit, applicable to most counties in the U.S., is $484,350. The VA loan entitlement for those counties is 25%, or $121,087.50. The top limit for 2019, which applies to counties where housing costs are highest, is $726,525. The VA entitlement in those counties is $181,631.25.\nNote that if you can afford a home that costs more than the top conforming loan limit for your county, you can still use your VA entitlement toward the purchase—but you'll have to finance (or put down cash) to cover the additional cost yourself. This option will still result in significant savings versus financing the whole property yourself.\nConversely, you don't have to use your full entitlement if you find a property you like at a price lower than the conforming limit, and you may be able to apply any unused portion of your entitlement to a future home purchase. END
 TITLE: What Is a VA Loan? CONTENT: VA Loan vs. Conventional Loan\n-----------------------------\nVeterans Affairs backing, along with lending requirements stipulated by the VA, make VA loans significantly more affordable than comparable conventional mortgage loans.\nIf you're not sure whether you'd get a better deal with a VA loan than you would with a conventional loan, check out these differences between the two:\n*   **You can get a VA loan with a zero down payment.** Conventional mortgages typically require cash down payments of at least 10%.\n*   **You won't have to pay private mortgage insurance (PMI) with a VA loan.** On conventional mortgages with down payments of less than 20%, lenders require purchasers to buy PMI to cover their losses in case of default on the loan.\n*   **VA loans typically come with lower interest rates.** Lenders usually charge higher rates on conventional mortgages than on VA loans.\n*   **You're more likely to qualify for a VA loan with lower credit scores.** Lenders typically have less restrictive credit requirements for VA loans than they do for conventional mortgages.\n*   **You can use your VA entitlement more than once.** If you pay off your first VA home loan, you can apply for another, as long as you're using it for your primary home. END
 TITLE: What Is a VA Loan? CONTENT: What Fees Come With VA Loans?\n-----------------------------\nAs with conventional home loan lenders, financial institutions that issue VA loans may charge origination fees to cover the costs of processing the loan. The amount of these fees varies by lender, and is typically higher for applicants with lower credit scores.\nIn addition, most VA loan recipients must pay a percentage of the purchase value, known as the funding fee, to help offset the cost of VA benefits to U.S. taxpayers. Details are spelled out at the VA website, but the fee varies depending on several factors, including:\n*   The nature of your service (reservists pay higher fees than full-time military)\n*   Whether or not you make a down payment on the purchase. As with origination fees on many conventional mortgages, you can \"buy down the points\" on your funding fee by making a down payment on the loan.\n*   Whether you're using your VA entitlement for the first time, or applying it to a new loan after paying off your initial one. (Fees are higher the second time around.)\nThis table summarizes the 2019 funding fees for first-time VA loan borrowers:\nThe following individuals are exempt from paying VA funding fees:\n*   Those receiving VA compensation for a service-related disability\n*   Those who would be eligible for compensation for a service-related disability if they were not receiving retirement or active-duty pay\n*   Surviving spouses of those who died in service or from a service-related disability\nLender origination fees and VA funding fees can be added to the purchase price of your home and financed over the life of the loan. This increases your monthly payments somewhat and adds to the total cost of the loan over its lifetime, but enables you to close on the loan without having to pay any cash up front. END
 TITLE: What Is a VA Loan? CONTENT: How Do I Qualify for a VA Loan?\n-------------------------------\nThe first step in obtaining a VA home loan is reviewing your service record (or that of your spouse) to make sure you meet the necessary eligibility requirements.\nNext, you must obtain a Certificate of Eligibility (COE) as proof to the lender that you are a legitimate candidate for a VA loan. You can get a COE in any of three ways:\n*   Complete an online form at the VA's eBenefits website.\n*   Provide records of your military service to a lender that issues VA loans, and they can generate a COE for you.\n*   Fill out and submit a COE request form by mail.\nDocumenting your eligibility to receive a VA loan doesn't automatically entitle you to one. You still must apply for and qualify for a loan by meeting the lender's credit and income qualifications. The VA sets guidelines for these qualifications, but each lender has some discretion in determining their lending criteria.\nWorking within VA guidelines, lenders also set their own interest rates and fees. Many financial institutions advertise and promote their VA loan offerings, but if you need help finding a VA loan issuer, you can contact the VA Regional Loan Center that serves the area where you plan to buy a home.\nIt's a good idea to identify a lender and get prequalified for your loan before you start shopping for a home. Prequalification will let you know how much you have to spend on your home. To get prequalified, you'll typically need to meet the lender's minimum credit score requirement and show proof of sufficient income to make the monthly mortgage payments.\nIt's also smart to apply to multiple lenders when seeking a VA loan. If your credit score is on the low side, you may not be approved by all lenders. And even if all your applications are approved, there's a chance one lender will offer a better interest rate than another. As with any loan, seek out the best rate and terms you can get. END
 TITLE: What Is a VA Loan? CONTENT: Do I Need a Good Credit Score to Qualify?\n-----------------------------------------\nLenders that issue VA loans set their own credit score requirements, but typically the criteria on VA loans are more lenient than those for conventional loans. While many conventional mortgage issuers look for a FICO® Score☉ of 670 or greater, issuers of VA loans may accept applications from borrowers with a FICO® Score as low as 620.\nAs with conventional mortgages (and other forms of consumer credit), it's a good idea to check your credit score before you apply, so you have a good idea where you stand. Higher credit scores generally mean better lending terms, including interest and fees, that can save you thousands of dollars over the lifetime of the loan.\nIt's not common, but it is possible to be turned down for a VA loan application if your credit history contains significant negative events, such as bankruptcy. If that happens, or if you'd just like to improve your credit standing before you apply for a VA loan (which can also help you get a lower interest rate), follow these tips for improving your credit score, and apply again once your score is higher. Persistence is a military virtue, and in time, you should be able to get the loan you deserve. END
 TITLE: How to Avoid Paying Credit Card Interest CONTENT: How APR Works\n-------------\nThe interest rate on a credit card or a loan is what the lender charges you for the use of borrowed funds. The APR on your credit card is a standardized way to note the interest you'll pay on any balance you carry from one month to the next—that is, any portion of the amount you borrow that you don't repay within the month a purchase is made.\nTechnically, the APR on a credit card is the amount of interest you'd pay on a balance carried over a 12-month period, expressed as a percentage of the balance. On a card with an APR of 19%, for example, carrying a $1,000 balance for one year would result in a $190 interest charge.\nIn practical terms, it's virtually impossible to maintain a constant balance for a full year, so credit card APRs aren't especially useful for calculating your monthly interest charges. They are helpful when you're comparing card offers, however: Generally speaking, you'll want the lowest APR card you can get, although borrowing limits and annual fees also may help determine which card best meets your needs.\nThe APR on a credit card is equivalent to its interest rate. That's significantly different from the APRs published for auto loans, mortgages and other installment loans. The APRs for installment loans are a measure of the total cost of the loan, including interest and fees paid over the life of the loan. If a credit card includes an annual fee, the fee isn't reflected in its APR, so it's important to compare fees as well as APR when shopping for credit cards. END
 TITLE: How to Avoid Paying Credit Card Interest CONTENT: Credit Cards With Multiple APRs\n-------------------------------\nWhen you look at credit card offers or advertisements, the APR that's touted most prominently is the APR for purchases. This is the interest rate that applies anytime you use your card at a retailer, restaurant or online merchant. Many credit cards also have other applicable APRs for cash advances and balance transfers. The cash advance APR typically is several percentage points higher than the APR for purchases. Some cards offer a very low (as low as 0%) balance transfer rate during a special introductory period—this type of card can be useful to pay down debts. Higher penalty APRs may also kick in if you miss one or more payments. END
 TITLE: How to Avoid Paying Credit Card Interest CONTENT: Thanks to the grace period that's a standard of virtually all U.S. credit cards, it's possible to use credit cards frequently without paying a cent in interest. If you pay the full balance due listed on your statement within the grace period, your lender won't charge you interest. The grace period can range from 15 to 21 days and is typically built into the card issuer's billing process: The grace period extends from the date the monthly statement is issued to the payment due date. If you pay off your entire balance by the due date, no interest charges apply.\nIf you pay off your card in full each month, your card's interest rate is immaterial: The interest charge will be zero, no matter how high or low the APR may be.\n### When You Can't Pay Your Balance In Full\nIt's likely that, at some point, a surprise expense or other issue will lead to a credit card balance you cannot pay in full before the end of the month. In most cases, you'll be charged interest on whatever portion of the balance you don't pay off, and interest charges will continue to apply until you bring the card's balance to zero.\nSome cards suspend the grace period on new purchases as soon as you carry a balance forward from one month to the next. When that happens, you're not just charged interest on the outstanding balance; any purchases you make while the grace period is suspended are charged interest starting the day of the transaction. Those charges, plus those on the outstanding balance, can add up fast.\nAlso, some cards maintain the grace period suspension for one or more months after you've paid off your balance. All purchases made while the grace period is suspended are subject to interest charges starting on the day of purchase. It's good to be aware of them and to avoid them when possible. END
 TITLE: How to Avoid Paying Credit Card Interest CONTENT: How to Lower Your Credit Card APR\n---------------------------------\nLeveraging your credit card's grace period is a great way to avoid interest charges. In reality, it's all but inevitable that you'll eventually accrue interest on your purchases, so it's a good idea to seek out the lowest APR credit card.\nCredit card APRs can vary from person to person, even for the same card from the same lender. When a lender decides the APR on a credit card, it typically considers several things about a borrower, including their credit report, credit score, income and employment history. Many lenders use credit scores as an initial screen to help match applicants to different cards and interest rates. Applicants with higher credit scores typically are offered a lower APR.\nTo get the best loan terms available to you, consider doing the following:\n*   Review your credit reports and report any inaccuracies to the national credit bureaus (Experian, TransUnion and Equifax).\n*   Check your credit score and take steps to improve it, such as:\n    *   Always pay your bills on time. Just one late payment can cause a significant decline in your credit score.\n    *   Avoid high credit card balances, especially when they exceed 30% of your borrowing limit.\n*   Apply to multiple lenders and shop carefully for the best deal; consider both APR and annual fees.\n*   Negotiate with your card issuers to try to reduce the APR on cards you already have.\nAPRs are great for comparing credit card offers, but the best credit card interest charges are the ones you don't pay at all. By understanding the grace period and managing your balances carefully, you can keep your interest payments at or close to zero no matter what the interest rate is on your card. END
 TITLE: How Do I Establish Credit For My New Business? CONTENT: What Is Business Credit?\n------------------------\nMuch the same way a consumer's credit score comes from an analysis of their credit history, a business develops a credit profile based on its track record making payments and managing credit. Business credit reports maintained by Experian and other companies (Equifax, FICO and Dun & Bradstreet) look different from consumer credit reports, but serve a similar purpose. Like a lender looking at consumer credit scores before extending credit, investors, lenders and vendors may check a business's credit score before entering into an agreement.\nMany businesses start out as one-person sole proprietorships, in which the business and its owner are one in the same. In that situation, the owner's personal credit and the business's credit are also one in the same. If a sole proprietor applies for a credit card for their company or seeks a business loan, lenders may check the owner's personal credit score to help decide whether to work with them.\nIf you're a sole proprietor who hopes to grow your business, it's important for both your business's future and your personal financial welfare that you begin to build a business identity separate from your own.\nEstablishing credit for your small business will give your company opportunities to finance future growth, set up credit accounts with partners and suppliers, and secure credit cards and other revolving credit accounts to help manage cash flow. Independence from your personal credit file helps protect your business in case any missteps or mishaps, such as identity theft or a forgotten medical bill sent to collections, lower your personal credit score. Conversely, if your business experiences a down cycle and gets overextended on credit, your personal credit score won't suffer as a result. END
 TITLE: How Do I Establish Credit For My New Business? CONTENT: Steps to Establishing Business Credit\n-------------------------------------\nTaking these steps will help your business credit grow, which will be important when it comes time to take out a business loan or lease a new building.\n*   **Incorporate your business.** Incorporation creates a legal entity separate from its owner(s). A corporation has much of the legal standing an individual does: It can enter into legal contracts, sue (and be sued), and it's obligated to pay taxes. There are many types of U.S. corporations, each with different legal requirements and status. Consult your legal adviser before you decide which makes the most sense for your business.\nThe simplest form of incorporation is the limited liability corporation (LLC). This is often the type of corporation pursued by small businesses, even those that adopt different corporate structures later. In most jurisdictions, registering an LLC is a simple matter that requires choosing a name that isn't already in use, filling out an articles of organization document that explains who's who at the business, and paying a fee (typically a few hundred dollars).\n*   **Secure an employer identification number (EIN).** An EIN is the unique identifier the federal government uses in reference to your business. You'll use it on corporate tax filings, much the way you use your Social Security number as a personal tax ID.\n*   **Get a separate phone number and address for your business.** The company's number should be posted prominently online: on your business website, Facebook, LinkedIn, community listings and search engines.\n*   **Register a D-U-N-S Number® with Dun & Bradstreet (D&B).** D&B specializes in compiling business credit information. Obtaining a D-U-N-S Number establishes a D&B credit file for your business, and lets your creditors report your payments and other activity.\n*   **Begin establishing a business credit history.** Any vendors who supply your company with goods and services and bill you afterward are technically creditors. Payments to creditors are part of your company's credit history, but they'll only help your company build credit if they are reported to commercial credit bureaus. Encourage your suppliers to report your payments to Experian and other business credit bureaus, and get in the habit of doing the same for your clients and customers.\n*   **Apply for a business credit card.** Although the goal is to separate personal and company credit, your first company credit card likely will be based on your own personal credit, will require your personal guarantee of repayment, and will probably result in activity being reported to both your personal credit reports and the company credit reports. Before applying for a company card, then, make sure you check your personal credit reports and credit scores and, if necessary, take steps to improve your credit score in pursuit of the best possible borrowing terms.\n*   **Monitor your company credit.** Once you've established a business credit history, you should keep an eye on your business credit scores just as you do your personal scores by monitoring your Experian business scores directly. As with your personal credit reports, you should check them regularly (at least annually), and request corrections of any inaccuracies.\nIn establishing and maintaining a good business credit score, you'll be flexing many of the same muscles you do in maintaining your personal credit scores. Apply for company credit cards to establish a company credit history that credit bureaus will use to score your business. On-time payments to creditors and vendors make a big impact. Keep an eye on your business credit scores so you quickly can address any negative marks and minimize their impact. If it's the right move, incorporating your business can help protect you by legally distinguishing you from your company.\nKeep your business payments current and use your credit wisely, without getting overextended, and you'll slowly but surely establish a strong, independent credit identity for your company. When it comes time, begin seeking loans and additional credit in the company's name, and you'll eventually be able to maintain separate personal and company credit profiles. END
 TITLE: How COVID-19 Scams Can Affect You CONTENT: COVID-19 Scams to Watch Out For\n-------------------------------\nAt a time when empathy and compassion are sorely needed, criminals would rather exploit the situation with targeted scams to steal money, personal information and more. While these scams have been around for a long time, cybercriminals are putting a new spin on them at a time when many are vulnerable.\n\"Scammers are taking advantage of the COVID-19 public health crisis to try and spread their own contagion—cyberattacks that threaten businesses, governments, consumers and even children,\" says Jennifer Leuer, CEO of cyber security firm CyberScout.\n\"Just like practicing good personal hygiene, cyber hygiene should be front and center in the minds of all Americans,\" Leuer says. \"We urge consumers to pause before clicking links, opening attachments or visiting websites, and to adopt a few simple best practices like using long, strong and unique passwords to protect themselves from cybercrime.\"\nRead on to learn which scams you need to protect yourself against right now. END
 TITLE: How COVID-19 Scams Can Affect You CONTENT: Keep an Eye on Your Credit During the Crisis\n--------------------------------------------\nEven if you don't think you've fallen victim to a COVID-19 scam, it's important to check your credit regularly to make sure your information hasn't somehow fallen into the wrong hands. Experian's free credit monitoring service can help you stay on top of your credit score and report, monitor your spending and detect identity theft sooner via daily alerts.\nIf you're not in the process of applying for new credit and don't plan to in the near future, you might want to consider freezing your credit until things calm down. While a credit freeze will not prevent your identity from being stolen, it can help stop identity thieves if they try to apply for credit in your name.\nTo keep a close eye on your credit, you can view your credit report from each of the three national credit reporting agencies every week through April 20, 2022, at AnnualCreditReport.com. You can also view your Experian credit report for free whenever you like.\nPlease also note that Experian will never call you to discuss interest rates or offer direct loan or credit card relief. If you receive a call or email that purports to be from Experian and offers these services, ignore it.\nThese steps can go a long way in providing you with some peace of mind as well as some protection from identity thieves. END
 TITLE: How to Pay for a Home Office Upgrade CONTENT: What Do You Need in a Home Office?\n----------------------------------\nBefore you start planning out your home office, you'll need to get a realistic idea of how much your dream setup will cost. Prices can vary greatly depending on tastes and quality, but here's a general idea of what you can expect to pay for the main equipment and essentials you may need:\n*   **Office Desk**: You can find a basic work desk, with or without drawers for storage, starting at around $200. A high-quality standing desk could cost you anywhere from $500 to $800.\n*   **Work Chair**: Since you'll likely be sitting in it for hours at a time, shelling out for a high-quality chair can really make a difference. While a basic task chair can be had for $50 or less, an ergonomic office chair with adjustable features could cost around $200 to $300. If you're game for it, top-of-the-line Herman Miller office chairs can go for more than $1,000. For this price, however, you'll get a supremely comfortable and adjustable chair with a long-lasting warranty.\n*   **Computer**: A desktop or portable laptop that's powerful enough for work doesn't have to break the bank. You'll likely need to spend a minimum of $400 to $700, depending on what's available when you shop. Before you buy one, make sure you understand what's necessary for your job, and if you're limited to a specific operating system for the software you need to use. If you're focused on minimizing costs, you could consider buying a refurbished or open-box laptop from Best Buy or another retailer.\n*   **Monitor(s)**: Setting up one or two monitors may take up a lot of space, but extra screens can ease tedious work, such as comparing data or reading detailed text. If you're on a budget, you can likely find a monitor that's perfect for home-office use for around $150. This is another arena where the sky's the limit, though. If you're so inclined, a curved ultrawide screen with all the bells and whistles could cost more than $1,000.\nDepending on your setup and the nature of your work, you may also add some additional equipment to your shopping list: headphones, a printer, webcam, laptop stand, and a new (wireless, maybe) keyboard and mouse. All of this could add up to a couple hundred dollars depending on what you buy.\nFor anyone required to participate in regular video conferencing or give presentations, you may also want to add aesthetic purchases to your list, like office decor to place in your background. You could also add a ring light or even a pop-up green screen to your shopping list. END
 TITLE: How to Pay for a Home Office Upgrade CONTENT: How to Budget for Your Home Office\n----------------------------------\nYou may be tempted to drain your emergency savings or splurge on purchases for your home office. But instead of making a move that could harm your finances, consider the following options for covering furniture and equipment costs first:\n*   **Ask your employer about reimbursement.** Your employer may offer allowances for items that are necessary to your work or help increase your productivity. Consider asking if office equipment, such as an office chair or a monitor, could be provided for free. You could also ask about getting your purchase reimbursed, just be sure you understand reimbursement requirements _before_ making a major purchase.\n*   **Ask for a gift.** If a holiday or birthday is around the corner, you could ask for home office items as gifts. From a wireless mouse and keyboard set to an ergonomic office chair, consider putting an item on your wishlist if it'll make your workday go more smoothly.\n*   **Try a payment plan.** A payment plan can allow you to buy your equipment now and spread out your repayment over time. For interest-free payments spread out over four installments, try Klarna, a company that offers a plan with zero interest and zero fees, as long as you make all of your payments on time. Affirm also offers payment plans, with an option to choose your repayment schedule, but look out for their rates which can range up to 30% APR. Just know that services like this may perform a hard inquiry on your credit, which can affect your credit scores. It can also hurt your credit if you miss payments and default on the plan.\n*   **Use a credit card.** Credit cards aren't always the ideal way to finance a purchase since they tend to carry high interest rates if you don't pay off the purchase right away. Plus, unpaid credit balances can affect your credit scores. If plastic is your only option, make a plan to pay off the balance as soon as possible. You could also consider applying for a 0% introductory APR credit card and budgeting to pay off the balance before interest charges kick in. Consider using Experian CreditMatch™ to find the credit card for you.\n*   **Take out a small loan.** You also might apply for a small loan through a credit union or online lender. You might be out of luck, however, if you only need to borrow a few hundred dollars, as many lenders have a minimum loan size of $1,000 or more. Generally, taking out a loan smaller than that shouldn't be your first option, as you're likely to pay a relatively high interest rate. END
 TITLE: How to Pay for a Home Office Upgrade CONTENT: Saving Money on Your Home Office\n--------------------------------\nIt can be hard to swallow the idea of investing in a home office, especially if you don't enjoy remote work or you're uncertain how much longer you'll be working from home.\nIf you're deciding what to buy and where to cut corners, think about the equipment that's really crucial to your job. Going without certain furniture or technology is not worth the savings if it makes it harder for you to do your job. If you can, avoid putting your employment in jeopardy for minimal savings.\nInstead of letting your work suffer, try shopping around for the best budget recommendations, be sure to make a plan for repaying anything you finance, and consider selling your new equipment once you return to the office. END
 TITLE: Last-Minute Online Shopping Tips for the Holidays CONTENT: Finding Last-Minute Gifts\n-------------------------\n*   **Look for expedited shipping.** If time is getting short, you'll want to keep shipping timelines in mind. Certain vendors may offer expedited delivery, whether free or for a cost. Take a look at shipping options and move certain vendors to the top of your shopping list.\n*   **Consider curbside pickup.** Shipping could take a lot longer as a result of the pandemic. Picking up your gifts could be quicker and cheaper than expedited shipping, and still offers you the convenience of shopping from home. Buying presents through local vendors can allow you to support businesses in your area, and you may even be able to find more unique gifts.\n*   **Keep an eye out for deals.** Black Friday, Small Business Saturday and Cyber Monday can all be great opportunities to find good deals. Try blocking off a few hours on your calendar corresponding with big sale dates. If you've already missed Black Friday, you can still look for reduced pricing throughout the holiday season. In the meantime, make sure your shopping list is ready so you'll be prepared to get it done fast.\n*   **Opt for gift cards.** Coming up with thoughtful gift ideas and browsing for inspiration can be the most time-consuming part of holiday shopping. Gift cards are quick and they're great for kids or someone you don't know well. You can buy and send e-gift cards instantly or make it more sentimental by adding a small touch like a scented candle or fuzzy slippers.\n*   **Make a donation.** Last-minute gifts can often feel impersonal. If your friend or family member cares about a certain cause, you can show your support by making a donation to their favorite charity in their name. It's a thoughtful gesture that takes little time.\n*   **Order a subscription.** Avoid shipping delays by purchasing an online subscription for your loved one. Whether it's a magazine or a wine of the month club, you can quickly set up an annual subscription online and then let your friend or family member enjoy the gift all year. END
 TITLE: Last-Minute Online Shopping Tips for the Holidays CONTENT: Shop Smart\n----------\nWhen you're shopping in a rush, you might be tempted to save time by skipping basic safety measures. Here are some important ways to keep your purchases and your sensitive information safe during the holidays:\n*   **Bring packages inside.** Check your porch for packages and avoid theft by bringing boxes in right away. Go a step further by providing instructions with your purchase or posting helpful signs for delivery workers, letting them know where to safely leave your package. You can also sign up for tracking alerts so you know what date and time to expect your delivery. Informed Delivery, a service provided by the U.S. Postal Service, can help you with that.\n*   **Practice online security.** Avoid clicking on suspicious-looking emails that promise big discounts, or shopping through unsecure websites. Protect your identity online by using a unique password for each website. If you have a credit card with extra safety features or protections, consider using that card for all of your purchases.\n*   **Review your credit card and bank statements.** Be on the lookout for fraudulent account activity, like a purchase you didn't make. If you find something unusual on your statement, make sure to let your bank or credit card company know about it right away.\n*   **Monitor your credit report.** If someone has gotten ahold of your personal information, you'll want to know right away. Monitoring your Experian credit file is free and it will help you catch applications for new credit and accounts that have been fraudulently opened in your name. END
 TITLE: Last-Minute Online Shopping Tips for the Holidays CONTENT: Keep Your Budget in Mind\n------------------------\nBetween decorations, flights, food and gifts, many people break the bank with holiday spending. When you're making your holiday purchases last minute, you might be tempted to throw all budget constraints out the window—especially if you're using plastic.\nWhile using a credit card might help you get through the holidays, remember that you'll still have to deal with the damage. Increasing your credit card balances can hurt your credit scores. Plus, you'll be charged interest on anything you don't pay off within 30 days.\nIf you can't pay off credit card purchases right away, or buy gifts with cash, consider budget-friendly alternatives for the holiday. Your friends and family might be just as happy to receive a thoughtful hand-made gift, a printed photograph, an offer to babysit, or even a greeting card as they would be to receive an expensive gift that puts a strain on your budget. END
 TITLE: What’s the Lowest Mortgage Amount You Can Get? CONTENT: What Is the Minimum Mortgage Loan Amount You Can Borrow?\n--------------------------------------------------------\nWhen it comes to mortgage types, each lender offers different products. Researching the market will show you there's a lot of variation in interest rates, closing costs and requirements to qualify.\nBut finding a lender that offers small mortgages can present a special challenge. When it comes to loan amounts, most lenders don't disclose their minimums. Generally speaking, you may have trouble finding a mortgage below about $60,000, unless you're searching for a specific, unconventional loan type (more on that below).\nWhile mortgage minimums vary, qualification requirements are relatively consistent across lenders. As you search for and prepare to apply for the right loan, keep these common requirements in mind:\n*   **Credit score**: There's no hard-and-fast credit score that qualifies you for a mortgage, but many lenders require a minimum score of 620 (certain government-backed mortgages have lower requirements). The higher your score, the better the terms you'll qualify for.\n*   **Work history**: Lenders want assurance your income is stable enough to cover your loan payments over the long haul, so qualifying may include a requirement that you have proof of steady employment. Some mortgage lenders even require a two-year record of work for your current employer or in your current field.\n*   **Down payment**: Even if you're taking out a smaller-sized mortgage, your lender will likely require that you bring some of your own money into the transaction. Generally, you'll need to put down 20% of the purchase price to avoid paying private mortgage insurance. But many buyers can still find a lender even if they have a down payment as low as 5%. END
 TITLE: What’s the Lowest Mortgage Amount You Can Get? CONTENT: Things to Look Out for When Shopping for Small Mortgage Loans\n-------------------------------------------------------------\nEven when you're looking for a small mortgage, the details still matter. If you're not careful, borrowing a small amount could be more expensive than taking out a big loan.\nClosing costs are one of the details you should pay close attention to, since these can come out to around 3% to 4% of your total purchase price. You'll also want to understand your total interest cost. It might not seem that important for a smaller loan amount, but the difference between 3% and 5% APR on a $100,000 loan with a 15-year repayment is over $18,000 in interest charges.\nAs with any financing you shop for, be sure to compare costs and rates between one lender and another. Getting prequalification offers can help you review quotes without hurting your credit, and as an added benefit you can use the offers to negotiate better deals between one lender and the next. Just keep in mind that terms and rates could change if your credit or other factors change when you apply for the loan. END
 TITLE: What’s the Lowest Mortgage Amount You Can Get? CONTENT: How to Find a Small Mortgage Loan\n---------------------------------\nWhen you shop around for your mortgage, you may need to check out several different types of lenders, not just big banks. While Bank of America offers mortgages starting at $60,000, you may not find another bank of that size to work with you.\nA local bank or credit union may be more willing to work with smaller-dollar loans or even have special incentives to invest in your community. Key Bank, which operates in 15 U.S. states, has a special Community Mortgage program with no minimum loan amount for mortgages. To qualify, you may have to meet special requirements, including attendance of a homebuyer education workshop. END
 TITLE: What’s the Lowest Mortgage Amount You Can Get? CONTENT: Alternatives to Small Mortgage Loans\n------------------------------------\nAlternatively, you may be able to get the money you need without taking out a mortgage loan. Instead of getting a loan that requires your home as collateral, you could try qualifying for a personal loan. Just keep in mind that without collateral, your interest rate may be much higher.\nYou could also try getting more specific about the type of loan you want. If you're planning to buy a tiny house, try searching specifically for tiny-house financing. LightStream, the online lending division of Suntrust Bank, offers financing for tiny homes and park models ranging from $5,000 to $100,000.\nIf you're in the market for a condominium, look for lenders who offer condo-specific loans, like the Federal Housing Administration (FHA). The process of getting approved for this type of loan can be a bit different from a standard mortgage, so you may need to let your lender know upfront. If you're interested in getting an FHA loan, try starting your search by using HUD.gov to see approved units in your area. END
 TITLE: What’s the Lowest Mortgage Amount You Can Get? CONTENT: Getting Your Credit Ready\n-------------------------\nIf you need a small-dollar mortgage loan, finding a lender might not be your only obstacle. Even if you're borrowing a small amount, having poor credit or no credit could get in the way of your approval.\nBefore you start shopping around, pull your free credit report and score to see where you stand. Check to see if there's room for improvement or if there are inaccuracies you can address in your credit file. Taking this step, before you take out a loan, could help you qualify for better rates and save you a lot of cash in the long run. END
 TITLE: How to Adjust to Becoming a One-Income Household CONTENT: Cutting Your Expenses\n---------------------\nWith less cash coming in, you'll probably need to cut your expenses fast. If you don't already have one, you can start your preparations by creating a budget. It doesn't have to be anything complex, just a list of all of your expenses and income. A budget will help you to know exactly how much money comes in each month, where it goes, and what kind of changes you might need to make.\nHere are some tips for effectively reducing your budget:\n*   **Start with your biggest expenses.** If you're focused on cutting back small expenses, like coffee or the occasional manicure, you're not likely to find much breathing room. Instead, start by determining how you can cut your biggest costs, like moving to a more affordable apartment, downsizing your car or refinancing a loan to reduce your mortgage or vehicle payment. If possible, you might consider moving back in with your parents.\n*   **Reach out to your creditors.** Lenders are sometimes willing to reduce or defer your payments when a borrower is facing a hardship. If you think you might fall behind on a payment, contact your creditors right away (before you miss a payment), since they typically offer more flexibility while your account is still in good standing. If you've been affected by the ongoing coronavirus pandemic, you might be eligible for special relief.\n*   **Review your bank and credit card statements.** It's easy to forget about expenses when you're stressed, especially those automated charges that only come around quarterly or annually. Reviewing your account statements can help you find recurring charges and cancel them before the next due date, or at least try to prepare for them. It can also help you find unnecessary spending in your budget.\n*   **Cancel services you don't need right now.** Consider going without subscriptions, memberships or costly extracurricular activities. You don't have to give up all your hobbies forever, but choosing a cheaper alternative, or a free alternative, for just a few months can help you balance your budget. You can always sign up again when the dust settles.\n*   **Reduce or pause your benefit contributions.** Review your pay stub to see if you can cut back on voluntary contributions. Eliminating retirement or health care savings contributions slows your progress and isn't a good long-term strategy, but you may need that cash temporarily for food and other necessities, or to rebuild your emergency savings. As soon as your income improves again or you otherwise get on track, start up your contributions again.\nAs you review each cutback, keep in mind they likely won't last forever, just until your circumstances improve. Instead of thinking of what you'll lose out on, focus on identifying the costs you can immediately eliminate, reduce or put on hold. There will be some short-term pain, but cutting expenses could help you keep a roof over your head and food in the refrigerator. END
 TITLE: How to Adjust to Becoming a One-Income Household CONTENT: Increasing Your Cash Flow\n-------------------------\nIf your budget is already tight, you may not be able to gain the extra cash you need from eliminating some expenses. In addition to cutting costs, consider all of your options for bringing in more cash, whether temporarily or permanently. Here are a few places to start:\n*   **Apply for assistance.** If you were laid off, applying for unemployment or other benefits should be at the top of your to-do list. You might now qualify for medical coverage or certain federal or state benefits as well, so be sure to research what's available. Take your time to find out what's out there and spend time on applications—the benefit to your budget will be worth the hard work.\n*   **Sell or rent items you don't use.** Renting out an extra room or selling your second car could bring in a significant amount of money, but you could also come up with cash by getting rid of old jewelry, workout equipment, electronics and appliances, or selling other valuables you don't really use and can replace later.\n*   **Find an alternative income source.** Now might be the time for you or someone in your household to pick up a side hustle, even if it's just temporary. Start by putting together a list of things those in your household can do, such as making and selling knitted goods, driving for a rideshare company or tutoring. If you're really in a pinch, be sure to focus on the opportunity that's most likely to help you earn you the most money, fast. Whatever you choose, make sure you're prepared for any tax liabilities.\n*   **Use your network.** You might be tempted to hide your situation from others, but you'll be losing out on potential job referrals or other word-of-mouth leads and resources. Update your résumé and reach out to old coworkers or consider letting people know about your job search through social media outlets. END
 TITLE: How to Adjust to Becoming a One-Income Household CONTENT: Further Help With Debt\n----------------------\nIn difficult times, it's important to try and stay current on your debt payments. If you miss your payment due date, or pay less than the minimum due, you'll likely face late fees and take a big hit to your credit. But if you can't cover the minimum, or you just need more breathing-room in your budget, you might need to take further measures. END
 TITLE: How to Adjust to Becoming a One-Income Household CONTENT: Recovering From a Financial Challenge\n-------------------------------------\nExamining your income and expenses will help you get a realistic idea of how much money you need each month, and whether you'll need assistance, side-jobs or another strategy to make ends meet. You'll also probably need to make cutbacks and sacrifices that can help save you from financial ruin, including bankruptcy.\nWhile you're adjusting to your new budget, remember that the goal isn't just to break even. As challenging as it can be, you always want to try and put a little bit of cash aside for emergencies and other unexpected costs, or to cover you in case it takes longer than expected to become a two-income household again.\nEven if it's just a small amount like $20 a week, try regularly setting some money aside. Eventually you want to build up emergency savings with a balance equivalent to three to six months of living expenses. But in the meantime, tracking your credit and saving even just one month's worth of your rent or mortgage payment can help you rebound faster if another financial difficulty comes your way. END
 TITLE: How to Get Out of a Car Title Loan CONTENT: What Is a Title Loan?\n---------------------\nTitle loans may seem appealing if you have no credit or bad credit, as they often have low credit requirements, come with short repayment terms and they tend to be available for smaller amounts than other loans. You may be able to find title loans as small as $100, and up to $10,000.\nBut title loans tend to be outrageously expensive, with annual percentage rates (APR) around 300%. They're risky, too, since you have to use your car title as collateral for the loan. That means if you fall behind on your payment, your vehicle could be repossessed, potentially leaving you without a way to get to work or drive your kids to school. That's one reason these loans aren't legal in most states. END
 TITLE: How to Get Out of a Car Title Loan CONTENT: If you have a title loan, you may have a number of options for safely paying off the balance and getting your title back. Here are some alternatives to consider:\n*   **Pay off your balance early.** If there's a way you can come up with the cash early, try paying off the full balance as quickly as you can. Taking on a temporary side job, working overtime or borrowing from a family member could help you save money and get the vehicle's title back in your hands.\n*   **Negotiate your loan terms.** There's no guarantee a lender will negotiate with you, but it doesn't hurt to ask. If you need reduced payments or a lower APR, ask for something that fits your budget and make sure to get the agreement in writing.\n*   **Refinance.** You may be able to pay off your balance by taking out a refinance loan. If your credit has improved since you took out your title loan, you're that much more likely to qualify for a new loan with lower rates, fees, and no collateral required. Using Experian Boost™† could help you instantly raise the scores based on your Experian credit report before you shop around.\n*   **Try debt management.** If you need help with your overall debt situation, a nonprofit agency may be able to negotiate with your creditors and get you on a Debt Management Program that fits your budget. Note that debt management is very different from debt settlement. Debt settlement should be avoided since it can result in significant damage to your credit. END
 TITLE: How to Get Out of a Car Title Loan CONTENT: Can Title Loans Impact Your Credit?\n-----------------------------------\nTitle loans may not have any impact on your credit at all, since lenders don't typically run your credit information or report your payments to the credit bureaus. That means on-time payments toward your title loan balance won't help you build credit or improve your credit scores.\nIf you fall behind on your title loan, however, you can still face major consequences. Even if it's not reported to your credit file, you'll likely be charged late fees and your car could be repossessed and sold.\nOnce you're behind on payments, the lender may offer to \"roll over\" your debt into a new loan as a solution, but this means paying more fees and interest, which makes it harder and harder to repay your full balance. END
 TITLE: How to Get Out of a Car Title Loan CONTENT: Title Loan Protections for Military Members\n-------------------------------------------\nPredatory lenders, including car title lenders, often target their loans products at military service members. But if you're an active service member, you and certain members of your family could have special legal protections as a result of the Military Lending Act (MLA).\nThe MLA restricts high-risk terms for certain kinds of financing, including title loans. If your lender has violated the MLA, your title loan could be rendered void. Here are some prohibited practices to look out for:\n*   A lender cannot require access to your bank account.\n*   You can't be required to pay your title loan by check.\n*   You can't be charged more than 36% APR. END
 TITLE: How to Get Out of a Car Title Loan CONTENT: Steer Clear of Predatory Lenders\n--------------------------------\nLike paydays loans, title loans may seem like one of the only ways to get cash when you have credit problems. But even if you're in a pinch, it's important to explore all of your options before agreeing to put your car on the line.\nIt's still possible to get a traditional personal loan even if you have bad credit. As more alternatives to bank and credit unions continue to enter the marketplace, your options are growing year by year. These alternatives include online lenders and peer-to-peer lending platforms, which often are more accepting of those with lower credit scores and have many advantages over auto title loans.\nInstead of relying mainly on your credit report, scores and income information to make a lending decision, lenders may use alternative credit data to help determine your creditworthiness, which could help you qualify for better terms or a lower interest rate.\nTo avoid relying on predatory loans in the future, start working on your credit today. Along with paying bills on time and keeping your credit card balances low, you can use free credit monitoring to get familiar with what's in your credit file. Monitoring your report and score can help you identify areas for improvement and start building toward better credit right away. END
 TITLE: How to Pay Medical Debt and Avoid Damaging Your Credit CONTENT: How to Get Rid of Medical Debt\n------------------------------\nIf you're unable to pay for a medical treatment or need help paying a steep medical bill you've already received, here are a few options to consider. END
 TITLE: How to Pay Medical Debt and Avoid Damaging Your Credit CONTENT: What to Do if Your Medical Debt Is Already in Collections\n---------------------------------------------------------\nIf you're already behind on a medical bill and it has gone into collections, don't ignore it—having an account in collections can take a toll on your credit.\nFirst, make sure the amount they're saying you owe is accurate. It's wise to ask your medical provider or the collections agency if they will negotiate with you. Their goal is to get money back, so they may be willing to accept a lump-sum payment or repayment plan, and sometimes they will agree to let you repay an amount that's less than what you owe.\nAnother option is to work with a nonprofit credit counseling service. A certified credit counselor can work with you to come up with a debt repayment plan that fits in your budget.\nIf the amount you're being asked to pay is incorrect, you may need to file a dispute or otherwise sort it out with your medical provider. END
 TITLE: How to Pay Medical Debt and Avoid Damaging Your Credit CONTENT: How Can Medical Debt Affect Your Credit?\n----------------------------------------\nJust like any other bill, a medical bill on its own won't affect your credit negatively. You may also be fine if you've paid your bill a few days late. But medical debt could appear on your credit reports if you don't pay a bill over several weeks or months and your provider sends it to collections.\nEach health provider has its own policy and practice for collecting debt, and some may be more generous with others. Most typically wait 90 days before sending your debt to collections, though it could range anywhere from 60 days to 180 days. The collections may be handled internally or handed over to a debt collection agency.\nThe good news is that the three major credit bureaus (Experian, TransUnion and Equifax) have a 180-day waiting period before any medical debt will appear on your credit report. This grace period gives you some wiggle room and time to correct any errors, pay the bill, negotiate a payment plan, or otherwise resolve the situation before it goes on your report.\nIf you don't take care of the bill by then and it goes into collections, unpaid medical bills can remain on your credit report for seven years after the original date of delinquency. Since your repayment history makes up the largest part of your credit score, having medical debt in collections can negatively affect your credit report for years.\nThe exception is if your insurer pays off a medical bill that went into collections; if the credit bureaus have proof from the collections agency that it's been paid, they will remove the collection account on your credit history.\nAdditionally, if your medical debt has gone into collections, it's advisable to make sure the charges are accurate. If your account has gone into collections by error or you've been charged the wrong amount, you can dispute the medical collections and may be able to have it removed from your credit report. END
 TITLE: How to Pay Medical Debt and Avoid Damaging Your Credit CONTENT: Keep an Eye on Your Credit\n--------------------------\nChecking your credit report regularly can help you spot any accounts that you may not realize have gone into collections, especially if they were sent to an old address. If you're able to successfully dispute medical debt in collections, it's also smart to check your credit report to make sure it was removed. Check your credit report for free on Experian and make sure medical debt doesn't weigh down your score. END
 TITLE: How Should I Pay Down Debt During a Recession? CONTENT: During an economic downturn, you should continue making payments on your debt obligations and bills as much as you're able to. You might prioritize paying down your credit card debt since it probably has the highest interest rates out of all your debts.\nPaying down your credit card debt helps you pay less in interest charges, which can save you thousands over time. If you only ever pay the minimum on high-interest debts, a significant amount of your payment will go toward interest rather than your principal, making it difficult to pay off.\nTake a few minutes to sit down and assess how much you owe in credit card debt. Write down the balance for each card as well as the card's interest rate and the monthly minimum payment. Once you have a sense of what you owe, it's easier to make an effective strategy to pay off credit card debt.\nIf you're able to pay off your credit card balances, you may choose to focus next on paying off loans such as student loans or an auto loan, which typically have much lower interest rates than credit cards. However, if you're not having difficulty paying these installment loans every month and you're concerned that you don't have enough in savings, it might be better to shift your focus to building up an emergency fund.\nNo matter how you choose to tackle your debt, make sure you're making payments on time every month, even if you can only pay the minimum. Late or missed payments can do major damage to your credit score since payment history makes up the biggest piece of your score. END
 TITLE: How Should I Pay Down Debt During a Recession? CONTENT: What to Do if You Can't Afford to Pay Off Debt\n----------------------------------------------\nIf a recession puts you in a position where you can't afford to pay your debts, you should take action immediately to prevent some unpleasant consequences. Here are a few debt relief options to consider:\n*   **Work with your lender**: As soon as you know you won't be able to make your next payment, contact the lender and let them know. Tell them you're struggling financially due to the recession and ask if there's anything they can do to keep your account in good standing. Some lenders and creditors are more lenient during economic downturns, and they may provide relief options such as temporarily lowering or deferring your payments.\n*   **Debt consolidation**: Consolidating high-interest debts is a simple way to lower your interest payments, and it's something you can do yourself. One way to do this is to get a debt consolidation loan or to do a balance transfer to a credit card with a 0% APR introductory period.\n*   **Credit counseling**: A nonprofit credit counseling agency can help you understand your debts and put together a budget. If you can't make ends meet, the agency can put you on a debt management plan where you pay the agency a monthly sum they then use to pay your lenders and creditors on your behalf. They may also be able to work with lenders to negotiate lower interest rates.\n*   **Debt settlement**: Rather than creating a modified repayment plan like credit counselors do, debt settlement companies negotiate with your lenders to reduce the amount of debt you owe. However, these companies typically ask you to stop paying your debts while they do the negotiating, which can result in steep fees and damage to your credit. This is not a recommended option. END
 TITLE: How Should I Pay Down Debt During a Recession? CONTENT: How to Budget and Save Money in a Recession\n-------------------------------------------\nIt's never a bad time to create a budget, but if the economy is in a recession and you're impacted personally, making a budget is an especially valuable practice. Budgets can help you live within your means, pay off debt and accomplish your financial goals.\nTo create a budget, you'll first add up your monthly household income. If your pay is irregular, you can use an average from the past few months.\nNext, you'll tally up your monthly expenses. It's helpful to refer to your bank and credit card statements from the past few months to make sure you're looking at the complete financial picture. Group your expenses by monthly fixed (necessary) costs such as rent and utilities, and variable (discretionary) expenses, such as eating out and entertainment.\nThis process accomplishes a few important things. For one, it helps you see how much money is coming in and how much is going out, which can be eye-opening. If you spend more than you make, it means you're relying on debt to get by. Listing everything out can help you determine which discretionary expenses you can back or remove during a tough financial period.\nIf you can reduce your spending, you may be able to carve out room to put more money toward your debts (and maybe even some toward savings).\nIf your necessary monthly expenses (not including discretionary spending like Netflix) exceed your income and there's nothing else you can cut out, you may need to find additional sources of income to avoid accumulating more debt.\nAdditionally, there are ways to make money fast in a financial emergency. For example, you could take on gig work, such as grocery or meal delivery, or find people looking to hire those with your skills (such as tutoring, gardening or handiwork). You can also try selling belongings you no longer need. END
 TITLE: How Should I Pay Down Debt During a Recession? CONTENT: How to Prepare Your Finances Before a Recession\n-----------------------------------------------\nWhile some recessions can hit quickly and unexpectedly, there are actions you can take ahead of time to make sure you're financially prepared for the next one.\n*   **Build up an emergency fund.** Anytime you have extra money in your budget, throw it into a dedicated savings account. Experts recommend stashing at least three to six months' worth of living expenses so you have a fallback if you lose income or encounter an emergency. It's best to have a dedicated savings account specifically for your emergency fund so you're not tempted to use your savings. Even better: Set up direct-deposit to ensure you set aside money every month in your emergency fund.\n*   **Live within your means.** You don't need to wait for an economic turndown to start cutting back. Even when the economy is chugging along smoothly, it's smart to stick to a budget and keep expenses low. Any remaining money can be put toward an emergency fund, retirement or debts.\n*   **Pay down debt****.** If you have any credit card debt or loans, put extra money toward your debt payments to make a bigger dent. That way, if you lose income in a recession, you'll have less debt to worry about and can make your money go further.\n*   **Improve your professional skills.** When times are good, consider expanding your skillset. Whether it's by learning new things on the job or taking online courses and earning a certificate, professional development can make you more valuable to your employer, and more competitive in the job market.\nKeep an Eye on Your Credit\n--------------------------\nWhile paying off debt can help you more easily weather a recession, you may find a need down the road for an emergency loan, a low-interest debt consolidation loan or even a mortgage refinance. If that happens, you'll want your credit to be in good shape to ensure you get the best possible rates and terms. Making all your payments on time and keeping credit card balances low are two of the best ways to do that. You can get a free credit score and free credit report from Experian to find out where you stand. END
 TITLE: How Should I Pay Down Debt During a Recession? CONTENT: Keep an Eye on Your Credit\n--------------------------\nWhile paying off debt can help you more easily weather a recession, you may find a need down the road for an emergency loan, a low-interest debt consolidation loan or even a mortgage refinance. If that happens, you'll want your credit to be in good shape to ensure you get the best possible rates and terms. Making all your payments on time and keeping credit card balances low are two of the best ways to do that. You can get a free credit score and free credit report from Experian to find out where you stand. END
 TITLE: What Is Credit Card Purchase Protection? CONTENT: How Does Purchase Protection Work?\n----------------------------------\nIf your credit card comes with purchase protection, you may be eligible for repair, replacement or reimbursement of lost or stolen items that you purchased with the card.\nCoverage varies a lot between card issuers and specific cards, but generally it includes new items that are damaged, defective or stolen within 60 to 120 days of your purchase. Used items and objects that can expire, like antiques or batteries, are not generally eligible.\nPurchase protection is secondary coverage, meaning it can only be used after you've exhausted all of the other coverage you have available. That could include renters insurance, homeowners insurance, car insurance and any reimbursement available from the vendor.\nTo take advantage of purchase protection, make sure you made your purchase with an eligible credit card. If you need to file a claim, you'll have to contact the creditor and file within a set timeline. You may also need to submit additional documentation, like receipts, photos of the damaged item or a police report for items that were stolen. END
 TITLE: What Is Credit Card Purchase Protection? CONTENT: Who Offers Purchase Protection?\n-------------------------------\nPurchase protection may be offered as a benefit through your credit card network, such as Visa or Mastercard. The amount of coverage for each card can vary, and certain credit cards may even be excluded, but here's what's generally available from major networks. END
 TITLE: What Is Credit Card Purchase Protection? CONTENT: Best Credit Cards for Purchase Protection\n-----------------------------------------\nAs you can see, the coverage you get with purchase protection varies. If you're looking for a card with purchase protection, be sure to consider coverage limits and the length of time you're covered. You'll also want to weigh other factors, like cash back, annual fees and travel rewards, that may also be important to you. Here are some cards that offer great, all-around benefits: END
 TITLE: What Is Credit Card Purchase Protection? CONTENT: ### Chase Sapphire Preferred® Card\nThe Chase Sapphire Preferred® Card is a solid rewards card that comes with purchase protection of up to $500 per claim and $50,000 per account, for 120 days. As a new cardholder, you can earn 100,000 bonus points when you spend $4,000 on eligible purchases in the first 3 months from account opening (worth $1,250 toward travel when you redeem through Chase Ultimate Rewards). You'll also earn 3 points for every dollar spent on dining, 2 points per dollar spent on travel, and 1 point per dollar on everything else. The annual fee is $95. END
 TITLE: What Is Credit Card Purchase Protection? CONTENT: How Is Purchase Protection Different From Other Coverage?\n---------------------------------------------------------\nPurchase protection is just one of the benefits that can cover you for items you buy with your credit card. Your credit card issuer may offer other benefits that reduce your liability for purchases and travel too. Here are some similar but unique perks your card may offer on purchases you make with your credit card:\n*   **Extended warranty**: If you own an item that breaks after the manufacturer's or vendor's warranty expires, extended warranty coverage might help reduce your loss. This coverage can provide you with a replacement or reimbursement for a set timeframe after your initial warranty expires.\n*   **Price protection**: If you purchase an item and then the price drops, price protection can help you get money back. With price protection, your credit card issuer may offer you a refund for the difference between your purchase price and the current cost. Most credit card issuers no longer offer this coverage.\n*   **Return protection**: This could cover you if you try to return an item after the allowed time frame for returns.\n*   **Cellphone coverage**: If you pay for your phone with a credit card that offers this protection, you could be reimbursed for damage or theft of your phone. END
 TITLE: What Is Credit Card Purchase Protection? CONTENT: Choosing Your Next Credit Card\n------------------------------\nWhen you're shopping for your next credit card, check and see if purchase protection and other benefits are available. Just like rates and fees, benefits will vary from one card to the next. Note that credit cards with lots of rewards and benefits usually require higher credit scores.\nNot sure what your score is? Take a look at your free credit score and report from Experian before applying. Every application for a new credit card can cost your credit scores a few points, but you can limit the impact by comparing card features using comparison tools like Experian's CreditMatch™ before you start applying. END
 TITLE: Should You Save for a Down Payment or Pay off Student Loans? CONTENT: When Does It Make Sense to Save for a Down Payment First?\n---------------------------------------------------------\nIn some circumstances, directing more of your income toward saving for a down payment could pay off in the long run. Consider doing so if:\n*   **Mortgage rates are especially low.** Mortgage rates are currently at a historic low, which can mean big interest savings compared with what you'd otherwise pay. Striking while the iron's hot and locking in a fixed lower rate now can stretch your dollar further and get you in the home of your dreams. Lower rates also help shave down your monthly mortgage payment to a point that it makes homeownership affordable.\n*   **Home prices are looking good.** Prices can vary greatly depending on local markets, but the national median home price as of June 2020 was $295,300. That's up over $17,000 from last year, which means that home prices are currently on the rise. It's impossible to predict future home prices, but waiting around as they continue to climb could mean missing out on great homebuying opportunities. That being said, many local markets are also seeing a sharp increase in pandemic-related short sales and foreclosures. END
 TITLE: Should You Save for a Down Payment or Pay off Student Loans? CONTENT: What Are the Benefits of Starting to Pay off Student Loans First?\n-----------------------------------------------------------------\nDrilling down on your student loans might make more sense than saving for a down payment in a few scenarios. Here are a couple potential benefits. END
 TITLE: Should You Save for a Down Payment or Pay off Student Loans? CONTENT: How to Start Paying Off Student Loans While Saving for a Down Payment\n---------------------------------------------------------------------\nIf you're still torn between saving for a down payment and paying off your student loans, take heart in knowing that it doesn't have to be an either-or situation. With the right planning and budgeting, it's possible to do both at the same time.\nCreating a budget and sticking with it can help you rein in overspending so that you can chip away at your student debt and build your down payment fund simultaneously. An added bonus is that you'll also be reducing your DTI month after month, which will help when you eventually begin shopping for a mortgage.\nWhile you're saving, resist the urge to dip into your down payment fund, even if it's an emergency. Consider keeping separate accounts for your emergency fund, day-to-day expenses and your home savings. A high-yield savings account you deposit money into every month (possibly automatically) can put down payment savings out of sight and out of mind. You'll also be earning money on interest while it grows.\nOne other trick is to leverage cash windfalls like tax refunds, inheritances, work bonuses and raises. Whenever you come into some money, consider dividing it equally between debt repayment and saving for a home. END
 TITLE: Should You Save for a Down Payment or Pay off Student Loans? CONTENT: Can Student Loans Affect Getting a Mortgage?\n--------------------------------------------\nWhen it comes to getting approved for a mortgage, your student loan debt comes into play in how it affects your payment history and debt-to-income ratio.\nTo qualify for a conventional mortgage, borrowers typically need to have a credit score of about 620. Payment history is the most important factor in determining your FICO® Score☉ (the scoring model used in many mortgage lending decisions), so having a history of late or missed student loan payments will drag down your score and make it harder to get approved for a loan with great rates, or at all. On the other side of the coin, consistent, timely payments will reflect positively. Generally speaking, the best mortgage rates and terms go to borrowers who have higher credit scores.\nYour debt-to-income ratio, as explained above, will also factor into whether you can qualify for a mortgage loan, and what rates you'll receive if you approved. High student loan payments can compromise your ability to get a mortgage loan. END
 TITLE: Will Consolidating Debt Damage My Credit? CONTENT: How Can Debt Consolidation Affect Your Credit?\n----------------------------------------------\nWhen you use a new credit account to consolidate debt, it could impact your credit score negatively in a few different ways. Here's what can happen and how much it might affect you. END
 TITLE: Will Consolidating Debt Damage My Credit? CONTENT: Debt Consolidation Alternatives\n-------------------------------\nDebt consolidation can help you get to where you need to be financially to pay off your debt. It may cause you to experience some negative effects to your credit score in the short term, but the upside of becoming debt-free may be enough to outweigh the costs.\nIf the debt consolidation methods listed above are unappealing or unattainable, however, there are alternatives you can explore. END
 TITLE: Will Consolidating Debt Damage My Credit? CONTENT: Make Your Credit Score a Top Priority as You Pay Down Debt\n----------------------------------------------------------\nYour credit score is an important indicator of your ability to manage credit, and while you're trying to pay off debt right now, you may need to borrow again at some point in the future.\nAs a result, it's crucial to monitor your credit regularly and look for ways you can improve it. Also, keep an eye on your credit report to make sure you're up to speed on the information that's affecting your credit score.\nAs you take steps to care for your credit score, you'll be in a better position to qualify for affordable credit in the future when you need it. END
 TITLE: Which Debts Should I Pay Off First? CONTENT: Should You Pay Off Installment Loans or Revolving Credit First?\n---------------------------------------------------------------\nDebt is usually broken down into two groups: installment loans and revolving credit. Here's how each works:\n*   **Installment loans**: Installment credit comes in the form of loans that have equal monthly payments—often called installments—over a set repayment period. For example, when you get a 30-year mortgage loan, you get a lump sum to cover the cost of the sale, then the loan is paid off over that time. So you know exactly what you're going to pay every month and when the loan will be paid in full.\n*   **Revolving credit**: The alternative to a lump-sum loan amount, revolving credit accounts give you a line of credit that you can draw on, pay off and use again. Credit cards and lines of credit are considered revolving credit. Lines of credit typically have a draw period, followed by a repayment period, similar to an installment loan. With credit cards, however, there's no set repayment period and your monthly payment is based on a percentage of your balance.\nThe decision of which type of debt to pay off first depends on a few things, so it's important to understand the full extent of your situation. END
 TITLE: Which Debts Should I Pay Off First? CONTENT: Which Credit Cards Should You Pay Off First?\n--------------------------------------------\nIf you've decided to focus on your credit card debt first, and have multiple accounts, prioritize the card with the highest interest rate to save more money on interest.\nTo maximize your savings, use the debt avalanche method: Make just the minimum monthly payment on all of your cards except the one with the highest interest rate. With that account, put all of the extra money you can afford to pay it down faster.\nOnce you've paid off the balance on the card with the highest interest, take all of the money you were putting toward it every month, and apply it to the card with the next-highest rate in addition to the minimum payment you're already making. Again, you'll continue to pay just the minimum on your other cards.\nYou'll repeat this process with each card until all of your credit card debt is paid off. The strategy is called the debt avalanche method because your payments will increase with each successive card, accelerating your progress more and more.\nAnother way to approach your credit card debt is with the debt snowball method. This approach works mostly the same as the debt avalanche method with one key difference: Instead of focusing on your balance with the highest interest rate first, you'll pay down your smallest balances first.\nThis approach won't save you as much money as the debt avalanche method would. But if you've struggled to get and stay motivated with debt payoff, getting quick wins in the form of paid-off accounts can help you keep that momentum going. END
 TITLE: Which Debts Should I Pay Off First? CONTENT: Consider Refinancing Options to Save More Money\n-----------------------------------------------\nAs you're paying down your debt, consider whether there's a way to refinance some of your debt at a lower interest rate. This may be possible if your credit has improved since you first took out the debt. And if you have good credit, you may be able to qualify for a balance transfer credit card with an introductory 0% APR promotion.\nCheck your credit score and look into opportunities to consolidate or refinance your high interest accounts with a lower interest option. This process alone won't solve your debt problem, but it can make it easier to manage, save you money and help you become debt-free sooner. END
 TITLE: How to Manage Credit Card Debt If You’re Unemployed CONTENT: Contact Your Credit Card Issuers\n--------------------------------\nAs soon as you know you'll have trouble covering minimum credit card payments, ask your credit card issuers for help.\nDepending on the company, it may agree to reduce your interest rates or minimum payments. If you've already fallen behind and accrued late fees, request that those fees be waived. You can even ask for forbearance, which is a temporary hiatus from paying your bill.\nWhen you're honest and share that you're experiencing a temporary financial setback, your credit card issuer may come through as an ally. Having a long history of on-time payments with the company could also be an asset. If the issuer isn't willing to work with you, ask other lenders for assistance: You could qualify for a modification program through your student loan or mortgage lender, for instance, freeing up money for credit card payments.\nSome credit card issuers offer payment protection plans, which, for an ongoing monthly fee, will allow you to pause making minimum payments in certain circumstances. But these plans come with a range of eligibility requirements and limitations, which may make them difficult to fully utilize. Instead, consider setting aside the amount you'd pay for a payment protection plan in an emergency fund so you have the flexibility to cover bills when you need to. END
 TITLE: How to Manage Credit Card Debt If You’re Unemployed CONTENT: Avoid Adding to Your Debt\n-------------------------\nIt may be tempting to use credit cards to pay for essentials when you're not earning income. But dealing with an unexpected period of unemployment is an example of why it's so important to maintain an emergency fund.\nIf you have cash saved, draw on those reserves to pay bills instead of adding to high interest credit card debt, which will only be harder to pay off later on. Avoid dipping into your 401(k) or individual retirement account: Retirement accounts are meant to house long-term savings that grow over time. Withdrawing money means you'll lose out on investment gains that could make a significant difference to your account balance in retirement.\nIf you don't have an emergency fund and can't afford to pay for essentials, such as housing, during this time, consider taking out a personal loan—particularly from a local credit union. Personal loans may come with lower interest rates than your credit cards carry, and credit unions often have more lenient credit requirements than traditional banks. Borrow the smallest amount you need to cover expenses during unemployment so that repaying the loan won't add to your financial stress later on. END
 TITLE: How to Manage Credit Card Debt If You’re Unemployed CONTENT: Create a Monthly Budget\n-----------------------\nWhile unemployed, make a budget that you'll stick to. This can help you spend as little as possible while ensuring you meet your monthly obligations. Here's how:\n*   First, list all your expenses by category, such as housing, utility bills, groceries, meals out and personal care. Include all your regular fixed expenses as well as discretionary spending.\n*   Determine your take-home income. This may be your unemployment pay or your spouse's income if you don't have any source of income during unemployment.\n*   Decide how much of your income to put toward each category—perhaps by using a strategy like the 50\/30\/20 rule, which recommends spending no more than 50% of your income on necessities, 30% on wants and 20% on savings and debt payoff.\n*   Identify categories where you can cut back. It's likely hard to change your housing payment in the short term, for instance, but perhaps you can limit spending on meals out or subscription services.\n*   Track your spending to ensure you keep it within the limits you've set. Recalibrate if your goals were unrealistic or your budget in certain categories was too restrictive.\nOnce your situation changes and you are getting a regular paycheck again, don't abandon your budget. Rework it taking your new situation into account, and stick to it. Adhering to a budget is one of the best ways to avoid overspending and reach your goals. END
 TITLE: How to Manage Credit Card Debt If You’re Unemployed CONTENT: Keep Making Minimum Payments\n----------------------------\nAim to continue making minimum payments on your credit cards and loans even when you're unemployed. That way, you'll protect your credit score, which you'll need to keep strong to get credit at competitive interest rates in the future.\nSince payment history is the most important factor in your credit score, a stretch of missed or late payments can have a significant negative impact on it. Consider minimum credit card and loan payments to be a necessary expense, like food and housing, as you create your budget. END
 TITLE: How to Manage Credit Card Debt If You’re Unemployed CONTENT: Work With a Nonprofit Credit Counselor\n--------------------------------------\nIf budgeting and identifying strategies to deal with debt becomes overwhelming on your own, seek out help from a reputable nonprofit credit counselor.\nAgencies affiliated with the National Association for Credit Counseling, for instance, have trained counselors on staff who can assist you in making a basic budget and considering your options for paying credit card bills on a tight income. Your first hour-long consultation—which may be all you need—is free. Credit counseling agencies also offer debt management plans: These require you to make one monthly payment to the agency, which negotiates with creditors and pays them on your behalf.\nBut don't confuse debt management with debt settlement, which is offered by debt relief companies that counsel you to stop paying your creditors. That can hurt your credit score and lead to costly fees. When you're feeling stressed during a period of unemployment, avoid agreeing to a debt settlement plan that could cause long-term harm. Working with a well-regarded nonprofit credit counseling agency is a safer bet. END
 TITLE: How to Manage Credit Card Debt If You’re Unemployed CONTENT: Know You Have Options\n---------------------\nIt's understandable if you feel anxious, confused and isolated when you're in debt and unemployed. But help is out there.\nStart with your creditors; then move on to self-help strategies like budgeting; and finally, seek assistance from trustworthy experts. This period of time will likely be temporary. Make sure that any strategies you use to handle debt will keep your finances as healthy as possible in the long term. END
 TITLE: How Does Medical Debt Affect Your Credit Score? CONTENT: Do Medical Bills Hurt Your Credit?\n----------------------------------\nMedical bills will not affect your credit as long as you pay them. However, medical debt is handled a little differently than other types of consumer debt. Since most health care providers don't report to credit bureaus, your debt would have to be sold to a collection agency before appearing on your credit report. Most medical providers won't sell the debt to a collection agency until you are 60, 90 or even 120 days or more past due. Exactly when that happens depends on your health care provider.\nEven after your bill goes to collections, the account won't show up on your credit report right away. The three main consumer credit bureaus—Experian, TransUnion and Equifax—give you a 180-day waiting period to resolve any medical debt before the collection account appears in your credit history, so medical bills won't impact your credit score right away.\nCredit bureaus provide this grace period because medical bills are a unique type of debt. Even if you have health insurance and the bill is for a covered expense, you may have to wait months for your insurance company to approve and issue payment to the health care provider. A simple coding or billing error can slow the payment process even more. The 180-day grace period gives you some time to correct any errors and gives the insurance company's payment time to make its way through the system. It also gives you time to set up a payment plan, if necessary.\nThis doesn't mean you should ignore a medical bill. Unpaid medical bills may take a long time to show up on your credit report, but the damage to your credit score can be long-lasting once they do. Unpaid medical bills can remain on your credit report for seven years after they become delinquent.\nQuick action is key to preventing a medical bill from damaging your credit score. As soon as you get a medical bill, review it to make sure it's accurate. Contact your insurance company and health care provider to resolve any problems; follow up vigilantly until you know the bill has been paid. If the bill isn't covered by your insurance and you're afraid you'll have trouble paying it, talk to your health care provider to see if you can work out an alternative solution. If your medical bills are overwhelming, you may look into getting help from a medical billing advocate or financial assistance from a charity or government program (more on that later). END
 TITLE: How Does Medical Debt Affect Your Credit Score? CONTENT: Can Medical Bills Be Removed From My Credit Report?\n---------------------------------------------------\nMedical billers and insurance companies make mistakes, and criminals may steal your identity to get medical care. If you have medical collections on your credit report that are not accurate or are the result of fraud, you can dispute them with the credit bureaus. If the dispute is settled in your favor, the accounts can be updated or removed from your credit report.\nThese disputes are free to file, and will need to be filed separately with each bureau that lists the incorrect information. Be prepared to provide evidence of your claim. For example, you might need records from the collection agency, insurance company or health care provider, copies of canceled checks, or a credit card statement showing that the bill has been paid. END
 TITLE: How Does Medical Debt Affect Your Credit Score? CONTENT: Does Paying Off Medical Collections Improve Credit?\n---------------------------------------------------\nIt's always best to pay off legitimate medical debt. When you or your insurance company pay off a medical bill that was in collections, the account will be updated to show it has been paid. That can have an immediate positive impact on your credit, but it won't necessarily boost your scores. Why?\nFICO® 9, the newest FICO® credit scoring model, and VantageScore® 3.0 and 4.0, the newest VantageScore credit scoring models, ignore collection accounts that have been paid, so when your medical debt is paid off, these scores may improve. (Even before the account is paid off, these three credit scoring models weigh medical collections less heavily than other types of collections.)\nOlder versions of credit scoring models are still commonly used, however, and they do typically continue to factor paid collections into your scores. If the lenders you plan to do business with use an older credit score model, paying off your medical debt may still improve your chances of being approved for credit, even if it doesn't increase your credit scores. That's because a paid collection account is typically viewed more favorably than an unpaid one. However, since there's no way to be sure which credit scoring model a lender uses to evaluate your creditworthiness, your best strategy is to never let a medical bill get to the collections stage. END
 TITLE: How Does Medical Debt Affect Your Credit Score? CONTENT: What to Do if You Can't Pay Your Medical Bills\n----------------------------------------------\nIf you know you won't be able to pay off medical bills on time, don't panic. One of the following options may solve your problem.\n*   **See if you can negotiate your medical bills.** Health care providers are often willing to work with you because they'd rather get some of what they're owed than get nothing at all. For example, some providers offer substantial discounts if you agree to pay a lower amount in full, or if you make a large down payment and then pay the rest over time.\n*   **Try to work out a repayment plan.** Your health care provider may be willing to break the bill down into monthly payments, which can make it more manageable for your budget. Just be aware that any interest or fees the provider charges will add to the cost of the original bill.\n*   **Hire a medical billing advocate.** Medical billing advocates work with health care providers and insurance companies to help resolve medical bills on behalf of individuals. The service isn't free, but it can be worth the cost. A medical billing advocate can save you thousands of dollars, not to mention hours of time on the phone with insurers and provider offices.\n*   **Find out if you qualify for financial assistance.** Depending on your income, you may be able to get help paying medical bills from Medicaid, local or state programs, religious groups or nonprofit organizations, and charities.\n*   **Use a personal loan or credit card.** These should be your options of last resort, as you'll incur interest on the amount you borrow or charge. Don't get a loan secured by your home or other assets; you could lose them if you default. If you plan to use credit, a card with a lengthy 0% APR introductory offer on purchases can provide extra time to pay off your medical debt without paying interest—but make it a goal to pay off the debt before the higher rate kicks in. END
 TITLE: How Does Medical Debt Affect Your Credit Score? CONTENT: Keep Your Credit Score Healthy\n------------------------------\nAs time goes by, a medical collection account will have less and less impact on your credit score, until it ultimately drops off your credit report. Even if you have a collection account on your credit report, there are still things you can do to improve your credit score. Make all your debt payments on time, keep your credit card balances low, and avoid applying for new credit unless you really need it. Keep an eye on your credit by periodically checking your credit report and score. Pay close attention to your credit score risk factors so you can make changes that will help improve your scores.\nReviewing your credit report regularly will help you spot any medical debt that has gone to collections or any fraudulent use of your credit. You can get a free copy of your credit report from all three credit bureaus through AnnualCreditReport.com. Once the medical debt is paid off, make sure your credit report shows the account as paid. When your credit score is on the road to recovery, keep tabs on its health by setting up free credit monitoring. END
 TITLE: How to Prioritize Debt and Rebuild Your Credit CONTENT: Know How Much Debt You Have\n---------------------------\nStart by compiling a list of all your loans and credit cards and how much you owe on each. Write down the monthly minimum payment and due date for each account. Organizing and visualizing all your accounts can be key to paying down debt and improving credit.\nListing all your debts may also reduce the chance of missing a payment. Because payment history is the most important factor in calculating your credit score, if you're having trouble making on-time payments, your credit score could suffer.\nOnce you've listed your debts, you can consider methods for paying them off as quickly as possible. END
 TITLE: How to Prioritize Debt and Rebuild Your Credit CONTENT: Research Your Options\n---------------------\nPaying down your debt can help you save money and improve your credit. Two ways to attack your debt are the debt avalanche and debt snowball payoff methods.\nWith the debt avalanche approach, you make minimum monthly payments on all your debts except the one with the highest interest rate; pay as much as you can toward that account until it's paid off. Then use the same strategy on the debt with the next-highest rate and so on until all your debts are paid off.\nThe debt snowball approach won't save you as much money as the debt avalanche method, but it will give you quicker wins, which may help you stay motivated to pay off your debts. With the debt snowball, you pay off the debt with the lowest balance first, regardless of the interest rate. Pay as much as you can to that account while making minimum payments on other debts, then once that's paid off, focus on putting the most money you can toward the debt with the next-lowest balance, and so on.\nBecause late payments can both cost you in fees and do serious damage to your credit, make sure that you make all payments on time going forward. Putting your bills on autopay and scheduling them to allow enough time for payment processing makes it far less likely you'll be late with payments, which can go a long way toward improving your credit scores.\nIf you're having trouble making payments due to high interest charges, lenders may be willing to make your payments more manageable. Try calling your lenders to ask if they would consider lowering your interest rate. If a card issuer is willing to reduce your interest rate by even just 0.5%, it could make paying off your balance much easier.\nWith regular, on-time payments, your credit score could start to improve after a few months. A credit score in the 700s, which could take anywhere from a few months to a few years to attain depending on your situation, usually results in better interest rates and terms from creditors. At this point, you might consider refinancing high interest debt to lower the interest rate and save money.\nIf you get paid every two weeks but all your bills are due at the beginning of the month, having enough money to make your payments on time can be challenging. In this case, consider asking lenders to change the due dates so you have a couple accounts due after your second paycheck of the month. That way you're more likely to have the cash flow you need to pay all your expenses on time.\nIf you have federal student loans and are struggling to pay them, you might be able to switch to an income-based repayment program. You can even try to defer these loans for a certain period of time. You may still accrue interest during this period, but deferment can provide some breathing room while you focus on your other debts, and could help you avoid hurting your credit. END
 TITLE: How to Prioritize Debt and Rebuild Your Credit CONTENT: Don't Forget About Utility and Other Bills\n------------------------------------------\nWhile you focus on paying down debt that directly impacts your credit, like loans and credit card debt, don't neglect bills like utilities and rent. Unpaid utility bills can be sent to collections, and multiple late rent payments can result in eviction. Accounts sent to collections show up on your credit report and can harm your credit scores for years to come.\nSome utility companies, including electric, water and internet providers, have hardship programs for low-income individuals, which may include a permanent reduction in payments or a one-time grant. You may have to prove your income and submit a pay stub. If you're not sure whether your provider offers this service, call and ask if there's an income assistance program. END
 TITLE: How to Prioritize Debt and Rebuild Your Credit CONTENT: The Bottom Line\n---------------\nThere are many options out there to help you get a handle on your debt and other bills—and help your credit at the same time. So do your research and talk to your lenders to see what's available, and commit to paying down debt to help ensure a positive financial future. END
 TITLE: How to Get Help Paying Medical Bills CONTENT: Request and Closely Review an Itemized Bill\n-------------------------------------------\nMedical bills and insurance statements can be confusing to read, but a close analysis could save you money.\nYour insurance company may send you an explanation of benefits (EOB), which is an initial report of what your insurance covers—not a bill. You may even get several EOBs for different appointments or procedures. Separately, the health care provider may send you a bill for costs that your insurance doesn't cover, including deductibles or copays. Before you get your bill, you might request a line item estimate of service costs, and if the bill you do get isn't detailed, you can request an itemized bill.\n(As an aside, don't ignore EOBs or bills if you haven't received services; that may be a sign that you're a victim of medical identity theft.)\nClosely review all the documents for errors, such as double billing, procedures or equipment that weren't done or used, incorrect times for operating rooms, and charges that your insurance should cover. Also, double-check that the EOB matches the bills you receive.\nMedical billing is complicated, and mistakes happen. Catching and reporting the mistake to the medical provider's billing department or your insurance company can help you avoid overpaying. END
 TITLE: How to Get Help Paying Medical Bills CONTENT: Look for Medical Bill Repayment Plans\n-------------------------------------\nOnce you've verified the bill is correct, you can contact your health care provider to discuss payment options. Some of these might help you spread out the cost over time or save you money overall.\n*   **Full-payment discount**: Some medical providers may offer a discount if you can quickly pay the bill in full. Of course, this isn't an option for everyone, but it may be worth asking if you can afford around 80% or more of the bill.\n*   **Down payment discount**: Alternatively, you may be able to get a discount if you can make a large down payment and agree to pay the rest of the bill over time.\n*   **Payment plans**: Medical providers may also offer payment plans if you can't afford to pay the bill right now. Sometimes you may even receive a low- or no-interest plan, which could provide significant savings over taking out a loan to pay the bill.\nThese options are offered by many hospitals and medical groups—49% of providers offer payment plans, according to a survey by HIMSS Analytics—and could come in clutch if you're not sure how you'll pay for your medical services. If you are offered a discount or payment plan, make sure you get the terms in writing and follow the terms of the accommodation closely. END
 TITLE: How to Get Help Paying Medical Bills CONTENT: Consider a Medical Billing Advocate\n-----------------------------------\nIf you're feeling overwhelmed or aren't getting anywhere on your own, you could hire a medical billing advocate to work on your behalf.\nThe advocate may go through the same process described above—looking over your EOB and bill and discussing payment options with the medical provider. But their experience and expertise may help them quickly spot errors or know which options your provider tends to offer. Advocates can also try to negotiate on your behalf, working to get fees and bills waived or lowered.\nMedical billing advocates charge for their services, but they may help you save hundreds or thousands of dollars. Depending on the advocate and situation, you may pay hourly, by project, based on how much you save or a monthly fee (when retaining an advocate for ongoing services).\nAsk your employer if it retains medical billing advocates as an employee benefit. If not, it might not make sense to hire an advocate unless you're facing very high bills or a big stack of paperwork you can't manage on your own.\nIf you're interested in working with an advocate, you can find options from accreditation organizations and directories, such as the Alliance of Claims Assistance Professionals and AdvoConnection. You may want to interview and compare advocates to find one that's familiar with your insurance provider, medical situation and who charges a fee you can afford. END
 TITLE: How to Get Help Paying Medical Bills CONTENT: Search for Financial Assistance and Charity Programs\n----------------------------------------------------\nYou may qualify for financial assistance from a variety of different programs, including government and nonprofit organizations. Availability and eligibility can vary widely depending on where you live and your condition, but the programs generally focus on helping low- to moderate-income households. Some examples of providers and programs include:\n*   **Medicaid**: Jointly funded by federal and state governments, Medicaid coverage is available to low-income adults, children, pregnant women, people over 65 years old and people with disabilities. If you qualify, you may be able to receive free or low-cost medical benefits. Parents may also be able to apply for the Children's Health Insurance Program, which provides medical and dental coverage for uninsured children up to 19 years of age.\n*   **Pharmaceutical companies**: Some companies that create and sell prescription drugs and medical supplies have patient assistance programs (PAPs) that may offer you free or low-cost medications. The Medicare website has a search tool that you can use to find PAPs using a prescribed drug's name.\n*   **Health care providers**: Some hospitals, clinics and health care providers offer reduced or free care to eligible patients. You may have already come across this if you tried to negotiate a medical bill.\n*   **CancerCare**: CancerCare has a copayment assistance foundation that can help with expenses related to specific cancer diagnoses.\n*   **HealthWell Foundation**: The HealthWell Foundation runs several disease funds that may help with premiums and copays. You can check the [current open funds]([]=open) online.\n*   **Leukemia & Lymphoma Society (LLS)**: The LLS has several financial assistance programs that may help with travel expenses, copays and urgent needs (including rent, utilities and food).\n*   **Patient Access Network (PAN) Foundation**: The PAN Foundation has financial assistance programs that could help you cover out-of-pocket expenses, including health insurance deductibles, premiums and travel. There are almost 70 disease-specific programs available, although they're not all open to new applicants at once.\nThis is far from an exhaustive list, and you should continue looking for local or state programs, religious groups and other nonprofits that may offer medical bill assistance. You could even ask your medical provider's billing department for suggestions, or reach out to larger assistance programs or foundations and see if they have recommendations. END
 TITLE: How to Get Help Paying Medical Bills CONTENT: Look to a Loan as a Last Resort\n-------------------------------\nIf you aren't able to get on a low-cost payment plan or find enough help elsewhere, you might consider taking out a loan to pay your medical bills or use a credit card.\nGenerally, this is a last resort as loans and credit cards (including medical credit cards) carry interest rates and fees that add to your overall costs. You also want to be careful about using a secured loan, such as a home equity loan or line of credit, to pay for medical bills, as they can cause you to lose your property if you fall behind on payments.\nThere may be a few exceptions, though. For example, if you have good credit and a decent income, you may qualify for a low-rate personal loan. Or, you may be able to get a credit card with an introductory 0% annual percentage rate, allowing you to pay off the debt over time without paying additional interest. END
 TITLE: How to Get Help Paying Medical Bills CONTENT: What to Do if Your Medical Debt Is Already in Collections\n---------------------------------------------------------\nIf you haven't been able to pay a medical bill or keep up with a payment plan, your debt may be sent to a collections agency. The collection amount may legitimately be higher than your original bill due to fees and interest.\nSimilar to when you're dealing with other accounts in collection, you may want to ask the debt collector for additional information if you believe there may be a mistake. Ideally, you make a request within 30 days of when the debt collector first contacts you—the Consumer Financial Protection Bureau has several sample letters you can use if you're not sure how to start.\nIf you find errors with the collection account, you can dispute their claim. You can also send disputes to the credit bureaus to get inaccurately reported collection accounts removed from your credit reports.\nIf there aren't any errors, you could try to pay off the debt or negotiate the amount. The debt collector may give you a discount for a full payment, or offer you a payment plan for a reduced total amount. If you can't come to an agreement, the collector can continue asking you for payment until the debt is repaid or you send a written request asking it to stop contacting you.\nBut stopping a debt collector from contacting you doesn't absolve the debt. The collection agency can still attempt to collect payment or sue you and get a judgment, allowing it to garnish your paycheck or bank account. END
 TITLE: How to Get Help Paying Medical Bills CONTENT: Monitor Your Credit for Medical Collections\n-------------------------------------------\nGenerally, medical bills don't get reported to the credit bureaus unless your account is sent to collections. But even then, medical collections are treated differently than other types of collections. The credit bureaus wait 180 days before allowing medical debts to appear on credit reports, giving you time to correct errors and sort out payments from your insurance provider.\nAdditionally, recent versions of common credit scoring models give less weight to unpaid medical collections than other types of collections. After all, unlike some other types of debt, you don't get to choose whether you get sick.\nStill, it can be important to monitor your credit reports for unexpected changes, and to check your score before applying for a new loan or credit score. Fortunately, you can get a free FICO® Score☉ from Experian, along with free Experian credit report monitoring. END
 TITLE: Can You Inherit Debt? CONTENT: What Kinds of Debt Can Be Inherited?\n------------------------------------\nWhile individual debts typically aren't the responsibility of those left behind, some types of debts may be inherited when someone dies. If your loved one passes away and their estate doesn't cover all of their outstanding debts, you could be responsible in these situations:\n*   **Joint and cosigned debt**: If you were on a joint account such as a joint credit card with somebody, and they die, you as the remaining account holder will be responsible for paying the debt. Authorized users, however, typically are not responsible for credit card debt, according to the Consumer Financial Protection Bureau (CFPB).\n*   **Debt in community property states**: In some states with community property laws, a surviving spouse may be required to pay some of their deceased spouse's debts with community assets. Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin; Alaska allows spouses the option to make their property community.\n*   **Home equity loans on inherited homes**: If you inherit a home from a loved one when they die, and they had a home equity loan on the property, you unfortunately also inherit that debt.\nWith other types of debt, it depends. For example, if your parent or spouse dies with medical debt, their estate's assets will go toward paying it off. If the debt exceeds the assets, the creditors may just write off the debt, meaning it doesn't have to be paid. But if you cosigned on medical bills or live in a community property state, you could be on the hook for their medical bills. Some states do have laws on the books that make adult children financially responsible for their parents if the parents can't afford to support themselves. These laws are not usually enforced in terms of medical debt, however, since Medicaid will often cover it.\nCredit card debt is similar, in that it depends on the circumstances and where you live. If you and your loved one had a joint credit card account or you were a cosigner on a loan, you likely will be responsible for the outstanding debt. If it was an individual account, you may owe nothing—unless you live in a community property state, in which any debt incurred during marriage is considered joint. If you're not in a community property state and you weren't a cosigner or joint account holder, you shouldn't inherit their credit card debt.\nAgain, laws vary by state, so make sure to check the laws where you live or hire an attorney to help you understand your debt obligations. END
 TITLE: Can You Inherit Debt? CONTENT: What Kinds of Assets Are Protected From Creditors?\n--------------------------------------------------\nCertain types of assets are generally protected from being claimed by creditors when your loved one passes. Even if your spouse or family member has outstanding debt, these assets are considered \"non-probate assets\" since they have a designated beneficiary or what's called joint tenancy with rights of survivorship. This means you can bypass the complicated probate court process and receive the asset directly, regardless of whether there's a will or not.\n*   **Retirement accounts**: If your loved one has a 401(k), IRA or other type of retirement account with you listed as a beneficiary, it should go directly to you and be protected from creditors.\n*   **Life insurance**: If you're the named beneficiary for your loved one's life insurance, it will pass directly to you and can't be taken by creditors.\n*   **Living trust**: Trusts are legal arrangements that hold assets for beneficiaries and can usually bypass the probate process. There are different types of trusts, but some can help protect the estate from creditor claims, in addition to reducing taxes. END
 TITLE: Can You Inherit Debt? CONTENT: How to Deal With Debt After the Death of a Family Member\n--------------------------------------------------------\nWhen you lose a loved one who had outstanding debts, debt collectors may come calling. They are allowed to contact a deceased person's spouse to identify the estate's executor or administrator. However, they aren't allowed to claim that you're responsible for paying off these debts unless you truly are legally obligated (like in the case of joint debt).\nWhile they may believe they are acting within their rights, it's possible a debt collector will try to collect debt that isn't valid or has passed the statute of limitations. Make sure to familiarize yourself with debt collection laws and understand how to deal with debt collectors.\nThe Fair Debt Collection Practices Act (FDCPA) regulates what collectors can and can't do: They're not allowed to threaten you, harass you with repeated calls or claim they'll take your property they're not entitled to, among other things. If you believe a debt collector is violating your rights, you can send them a letter asking them to stop and report it to your state's attorney general or submit a complaint with the CFPB.\nIf debt collectors insist you're responsible for your loved one's outstanding debts and you're unsure how to proceed, consider hiring a lawyer. They can determine whether these claims are valid and help you deal with collectors. The CFPB advises looking for a lawyer who specializes in consumer law, estate or probate law, debt collection defense or the FDCPA. If you can't afford it, look for legal clinics or legal aid offices in your area that offer free or discounted services. END
 TITLE: Can You Inherit Debt? CONTENT: Make Sure Creditors and Credit Bureaus Are Updated\n--------------------------------------------------\nThe executor of your loved one's estate (which may or may not be you) needs to send a copy of the death certificate to their creditors. Once notified of the passing, the creditors will likely pause collecting any unpaid bills as the estate is sorted out.\nThe creditors will also inform the credit bureaus of the death, which should prevent others from using the person's name to apply for new lines of credit. Even if you've contacted creditors, it's wise to also contact the credit bureaus (Experian, TransUnion and Equifax) directly to ensure they have updated the credit report to indicate the person has passed away. If you had any joint or cosigned accounts with your loved one, get a free copy of your credit report to ensure your accounts remain in good standing as you navigate this difficult process. END
 TITLE: How Can I Get Out of Medical Debt? CONTENT: 7 Tips for Paying Off Medical Debt and Avoiding Collections\n-----------------------------------------------------------\nIf you're facing medical bills that will be difficult to pay, your first objective is to keep your debt out of collections while you work to understand your charges, negotiate with your medical provider and figure out the best way to pay off your debt. Most hospitals and medical providers would rather work with you to help you find a way to pay than send your bill to collections.\nWondering where to start? Here are seven tips for tackling your medical debt and staying out of collections:\n1.  Review your bills. Gather up all of your bills and insurance explanation of benefits (EOB) forms and review them for duplicate billing, unauthorized charges and errors. Make sure your insurance company has paid for all covered expenses and that your medical provider has accounted for their payments. Contact your medical provider or insurance company with any questions.\n2.  Negotiate your medical costs. The best time to negotiate your medical costs is before treatment, but you can always ask your medical provider to adjust your bill after the fact. Good to know: Hospitals and doctors' offices may bill you at maximum rates, especially if you don't have insurance. Ask if they can adjust your rates down to what an insurance company or Medicare would pay.\n3.  See if you qualify for an income-driven hardship plan. Some hospitals and medical providers make accommodations for patients with low incomes and high levels of debt. If this type of assistance is available, they may forgive a portion of your debt and divide the remaining balance into smaller, more manageable payments.\n4.  Look for financial assistance or charity care programs. Similarly, you can ask your medical care provider if it has a financial assistance policy or charity care program for people with low incomes. Nonprofit hospitals are required to have these plans in place; some for-profit hospitals have them as well. If you qualify, they may forgive part of your debt or erase it altogether. Also, search for local charity organizations that help low-income consumers with medical debt.\n5.  Consider a payment plan. You may be able to work out a payment plan directly with your medical provider, possibly even with low or no interest. Just be sure to get your repayment agreement in writing.\n6.  Use medical credit cards. Medical credit cards—available online and through some doctors' offices—commonly offer 0% APR financing for six, 12, 18 or 24 months. They're only to be used for medical expenses and not all medical providers accept them. If you can repay your balance before the introductory rate expires, medical cards can be a money-saving alternative to regular credit cards. Just make sure you don't agree to transfer your balance to a medical credit card without reviewing your account and negotiating with your provider first. Once you put your charges on a medical credit card, your provider will consider the issue closed and your balance will become regular credit card debt.\n7.  Consider a medical bill advocate. A medical bill advocate can help you wade through the sea of information, file appeals with your insurance company and negotiate with your medical provider to lower your debt and create a workable payment plan. A professional advocate probably isn't practical if your debt is a few hundred dollars, but for larger bills the cost savings even after paying an advocate can be substantial. Get referrals and check references. END
 TITLE: How Can I Get Out of Medical Debt? CONTENT: How to Deal With Medical Debt Already in Collections\n----------------------------------------------------\nYour best defense is to engage with your provider early—before they send your account into collections. If a collection agency has already contacted you regarding your medical debt, follow this basic advice on dealing with collections:\n*   **Verify**: A collection agency is required to send you a written explanation of your bill within five days of your requesting it. Consider following the steps above to make sure your bill is accurate and up to date on insurance payments. This step should also help you avoid scammers by ensuring your bill is legitimate.\n*   **Dispute**: If you find errors in your billing or feel that you've been sent to collections in error, you can dispute the collections or contact your medical provider and\/or insurance company to discuss the issue.\n*   **Negotiate**: Collection agencies can work with you on repayment plans and may be willing to accept a reduced payout.\n*   **Resolve**: Although you want to reach a resolution with collections as quickly as possible, don't pay more than you owe or incur high-interest debt that will be difficult to repay. Take the time you need. END
 TITLE: How Can I Get Out of Medical Debt? CONTENT: What Not to Do When Paying Off Medical Debt\n-------------------------------------------\n**Don't avoid or ignore medical bills.** You'll get the best possible arrangement by working proactively with your medical provider.\n**Don't agree to terms you can't afford.** If your medical debt payments are going to make it impossible for you to cover your other expenses—including your mortgage, auto loan and credit card debt—you may put your financial health and credit at risk. Make sure your payoff plan is sustainable.\n**Don't rush to convert medical debt into high-interest credit card debt.** Not only are you likely to pay double-digit interest on your balance, but you will lose your opportunity to negotiate a lower bill or a low- to no-interest payment plan. Once you and your medical provider have settled on what you owe—and you still need to secure financing—consider a medical credit card or personal loan. END
 TITLE: How Can I Get Out of Medical Debt? CONTENT: Will Having Medical Bills on My Credit Report Affect My Score?\n--------------------------------------------------------------\nMedical bills don't affect your credit score unless they go to collections. The time frame for this can vary. Some medical providers wait 90 days or more past the billing due date to send it to a debt collector; some do it more quickly.\nEither way, all three credit reporting agencies (Experian, TransUnion and Equifax) won't report medical debt in collections until it's more than 180 days past due. This should give you time to dispute billing, negotiate your balance and work out a payment plan without damaging your credit.\nUnpaid medical debt that does end up on your credit report remains there for seven years. On the upside, if your insurance company ends up paying a bill that's in collections, the collection can be removed from your credit report. END
 TITLE: How Can I Get Out of Medical Debt? CONTENT: Moving Forward After Medical Debt\n---------------------------------\nWorking through medical debt is a major challenge. Throughout this experience, monitoring your credit score and credit report can help you understand the impact medical debt may have on your credit as you work proactively to stay out of collections, maintain your best possible credit and manage your debt until it's finally paid. END
 TITLE: How Can I Pay Off $50,000 in Credit Card Debt? CONTENT: Make a Plan to Tackle $50K in Credit Card Debt\n----------------------------------------------\nBecause every financial situation is different, there's no one right way to pay off credit card debt, especially when you have a lot of it. Here are some things to consider before creating a plan to tackle your credit card balances. END
 TITLE: How Can I Pay Off $50,000 in Credit Card Debt? CONTENT: Choose a Debt Payoff Method\n---------------------------\nYou should always pay at least the minimum monthly payment on each of your credit cards to avoid late payments, which could damage your credit. To work toward paying off a large balance, though, consider using the debt avalanche or debt snowball approach.\nWith the debt avalanche method, you'll make the minimum monthly payments on all your credit card accounts and apply any additional payments you can afford to the account with the highest interest rate. Once that balance is paid off, you'll take all the money you were paying toward it every month and apply it to the card with the next highest interest rate.\nYou'll continue this strategy until all of your credit cards are paid in full.\nThe debt snowball method follows the same process as the debt avalanche approach in every way except for one: Instead of targeting your account with the highest interest rates first, you'll focus on the account with the lowest balance.\nNeither approach is inherently better than the other, so you'll need to decide which is best for your situation. In general, the debt avalanche method will save you more on interest because you're paying off higher-interest accounts first. On the flip side, the debt snowball method will give you wins early on because you're eliminating smaller balances.\nConsider both options and your situation to decide the best path for you. END
 TITLE: How Can I Pay Off $50,000 in Credit Card Debt? CONTENT: Consider Other Options for Paying Off Debt\n------------------------------------------\nIn addition to the debt snowball and avalanche methods, consider other ways you can eliminate your credit card debt more efficiently and save money along the way. END
 TITLE: How Can I Pay Off $50,000 in Credit Card Debt? CONTENT: Look Into Debt Relief Options\n-----------------------------\nIf you're having a hard time making progress with your credit card debt, consolidation options and payoff methods may not be enough. In that case, it may be worth looking into credit counseling, debt settlement or even bankruptcy. END
 TITLE: How Can I Pay Off $50,000 in Credit Card Debt? CONTENT: Learn How to Use Your Credit Responsibly in the Future\n------------------------------------------------------\nPaying off $50,000 in credit card debt is no easy task, and no matter how you accomplish it, opportunities are available to improve your overall financial situation going forward.\nOnce you've accomplished your goal of paying off your credit card debt, it's important to be proactive about credit card habits to make sure you don't end up in the same situation again. This is especially important if you've had to resort to debt settlement or bankruptcy and want to rebuild your credit history.\nFor starters, make it a goal to check your credit score and credit report regularly. Your credit score is an indicator of your overall credit health and can give you clues about where you stand. And your credit report will provide the information you need to determine which areas to address, if needed.\nIf you still have your credit cards or can qualify for a new one, use them sparingly and pay your bill on time and in full every month. This can help establish a positive payment history and show a good credit utilization rate, both of which can help improve your credit score. END
 TITLE: What Is Debt Financing? CONTENT: How Does Debt Financing Work?\n-----------------------------\nDebt financing simply means borrowing money for the benefit of your business. You agree to repay the money with interest, just as you would with a personal or home loan. Although you may be able to finance some business expenses with your existing credit cards or loans from friends and family, most often debt financing means taking out a business loan.\nLearning how to get a business loan takes a bit of homework and preparation. If you're ready to dive in, these three steps can get you started:\n1.  Make a business plan. You need to convey the viability of your business—and your future prospects—to lenders with a formalized business plan. You also need to quantify how much money you need and for what. A business plan helps you clarify your needs, your goals and your route to profitability.\n2.  Consider different types of loans. Business loans take many different forms. Common types include:\n*   Bank loans\n*   U.S. Small Business Administration (SBA) loans\n*   Business lines of credit\n*   Equipment loans\n*   Invoice financing or accounts receivable financing\n*   Merchant cash advances\n4.  Mind your credit. As with any type of loan or credit, loans to help finance your business rely on your credit score and credit report to determine your creditworthiness—and the interest rate and terms you'll get. If you have an established business, you may have built business credit over the years. If not, your personal credit score and report may help bolster your case for getting a loan. Be aware that if you do use a personal guarantee to secure a business loan, your personal credit—along with any personal assets you use as collateral—may be at stake if you have trouble repaying your debt. END
 TITLE: What Is Debt Financing? CONTENT: Pros and Cons of Debt Financing\n-------------------------------\nDebt financing has both positives and negatives for businesses in need of a cash infusion. Among the reasons to consider taking on debt to build your business:\n*   **You retain control.** Compared with equity financing—which involves selling off a partial stake in your company to investors—debt financing allows you to retain control of your business. Your lender has no say in how you run your operations, and once your loan is paid back, your relationship with the lender is over.\n*   **Interest rates may be favorable now.** Although interest rates fluctuate and every loan situation is different, interest rates are low at the time of this writing. Your chances of getting a loan at a favorable rate in this environment are relatively good.\n*   **Interest on business debt may be tax deductible,** though principal payments toward your debt are not. Business debt includes any business loans or lines of credit, business credit cards, and mortgage or vehicle loans used for property and cars used in your business.\nOn the downside, debt payments can put a drag on your cash flow. You'll need to keep up with your payments, regardless of how your business is doing. Before you take on any business debt, make sure you have a clear idea of how you'll use the cash for your business and how you'll pay the loan back over time. END
 TITLE: What Is Debt Financing? CONTENT: When Is Debt Financing a Good Idea?\n-----------------------------------\nUsing borrowed funds to build a business works better for some business owners than for others. Debt financing might be a better idea for you if you fit the following:\n**You know exactly how the money will help.** The more definite you are about the scope and purpose of your proposed funds, the better. Flexing your credit to onboard additional staff so your accounting business can meet the tax-day rush? That's a defined use of funds with an identifiable payoff. On the other hand, borrowing money to cover expenses month after month—with no clear end or remedy in sight—is a bigger risk, both for you and a lender. To help ensure that you're not throwing good money after bad, take the time to delineate in as much detail as possible what you'll use the money for and how that investment will pay off.\n**Your business is already established.** It's certainly possible to get a loan to start a business. But you'll have an easier time—and more funding choices—if your business has a history. Your track record also makes taking on debt less risky for you. Revenue, expenses and operational needs are more concrete—and quantifiable—when your business is already up and running.\n**You have good credit or a viable source of funding.** Whether you've established business credit or hope to rely on your personal credit to secure a loan, good credit is a key asset for business borrowers. Again, this is a good time to check your business credit (if you've established it) and your personal credit score and credit report to help you assess your lending options. It's also a good idea to take stock of your available credit—and to investigate what your options might be for adding a line of credit or credit card to the business accounts at your bank. END
 TITLE: What Is Debt Financing? CONTENT: Debt Financing Alternatives\n---------------------------\nIf you're interested in debt financing, you have a wealth of options to consider. The SBA offers loan guarantees that can help small business owners secure business loans with favorable rates and terms. Online lenders offer an alternative to banks, which can be conservative when it comes to business lending.\nAre you in need of emergency financing—or are you unsure of your ability to get a business loan? You might consider using credit cards to cover minor short-term gaps in funding: Just be wary of high interest rates that can make credit card debt more difficult to pay off. This plan works best when you have a clear plan for paying off your balance quickly. You might also look to friends and family for help, or even think about tapping your own home equity. Before you take this kind of leap, however, think through your ability to repay. Depleting your personal assets or failing to repay your loved ones can do lasting damage that goes well beyond business.\nAlternatively, consider other ways to finance your business. If you're open to equity financing, an angel investor may be able to provide financial backing and—in ideal circumstances—play an advisory role as you grow. You may be eligible for grants from the SBA, community agencies or nonprofits in your area. Crowdfunding sites like Kickstarter or GoFundMe may also help you raise a bit of capital to launch a new product or keep the doors open through a rough patch. END
 TITLE: What Is Debt Financing? CONTENT: Using Debt Wisely\n-----------------\nThe wise use of debt can help you overcome obstacles or seize opportunities at critical points in the life of your business. The key is knowing when and how to activate debt financing to fuel your success. By sizing up your business and personal credit status, evaluating your objectives and prospects, and actively exploring all funding options, you can help your business develop greater flexibility—in both good times and bad. END
 TITLE: Should I Get a Second Job to Pay Off Debt? CONTENT: How to Earn Extra Income to Pay Off Debt\n----------------------------------------\nBefore you take on a second job, take a close look at your budget or bank statements from the past few months to determine if you can instead simply cut back on your spending. You may discover that you can free up some cash by reducing discretionary costs (like getting rid of some subscription services) or by changing your habits (like less takeout and more cooking at home).\nBut if there are no more cuts you can reasonably make, and your debt balances are overwhelming, earning extra income could be the best way forward.\nYou could get a part-time job at a local shop or eatery, where you'll work a set number of hours on a regular schedule. If you require more flexibility, though, there are plenty of ways to earn income with gigs and so-called side hustles, such as:\n*   Delivering meals or groceries through apps like DoorDash or InstaCart.\n*   Giving rides through rideshare services like Uber or Lyft.\n*   Babysitting children or offering in-home care to senior citizens in your neighborhood.\n*   Tutoring students in an area of your expertise, either in-person or online.\n*   Mowing lawns, cleaning houses or performing other odd jobs for people in your community.\nThere are also an increasing number of ways to make extra money from home, which is ideal—or even medically necessary—for some during the ongoing pandemic. You could explore freelancing for businesses or individuals who need your skills. Whether you're a pro at proofreading, graphic design, data entry, translating or anything else, you may be able to find one-off or ongoing gig options on sites like Guru, Freelancer.com or Upwork. Even if it's not your profession, you may be able to make money using skills picked up while working on a hobby, such as drawing, painting or sewing.\nYou could also look for a part-time, remote job on FlexJobs, which curates work-from-home job listings. An increasing number of companies are now willing to let employees telecommute, so a silver lining of the pandemic could mean even more opportunities to earn income from the safety of your home.\nYou can also get creative, such as selling used clothes or other household goods online. Another option is creating a stream of passive income by renting out a spare room or property you own. There are even apps that let you rent out your car or parking space when you're not using them.\nWhatever option you choose, make sure you're operating above board by following local, state and federal business laws and paying taxes properly. And don't forget about your personal safety—keep an eye out for those who may be looking to take advantage of you financially or in other ways. Exercise caution when performing side jobs, as protecting yourself and your personal information is more important than paying down your debt. END
 TITLE: Should I Get a Second Job to Pay Off Debt? CONTENT: How to Prioritize Debt\n----------------------\nIf you have multiple debt accounts weighing you down, it's wise to carefully prioritize which to pay off first. There are differing philosophies on debt repayment, and it's important to find the one that works best for you. That might mean focusing on the debt with the highest interest rate (usually credit card debt) since it costs you the most money over time. But that's not the ideal strategy for everyone.\nSome prefer the debt snowball method, where you prioritize your debts with the lowest balances first. You make the minimum payment on all debt accounts except the one with the lowest balance, which you'll pay as much as you can on.\nOnce that debt is knocked out, you'll shift your focus to the account with the next-lowest balance, and so on. By starting with the smallest debts first, you pay off accounts faster, which can give you a motivating sense of momentum. As you pay off accounts, you'll free up more money to put toward the next outstanding balance.\nAnother method is the debt avalanche, which instead prioritizes the balance with the highest interest rate. Like the snowball method, you pay only minimum payments on all other debts, but you'll put as much as you can toward the account with the highest interest rate, regardless of balance. Once that account is paid off, you'll focus on the one with the next highest interest rate, and so on.\nThis tactic can save you more money on interest in the long run, but it can take longer to pay off the accounts. Since your progress is not as immediately obvious compared with the snowball method, the avalanche method can make it harder for some to stay motivated. END
 TITLE: Should I Get a Second Job to Pay Off Debt? CONTENT: Additional Strategies for Paying Off Debt\n-----------------------------------------\nIn addition to earning additional income and starting with a debt repayment strategy, there are a few other things you can try to help you get free from debt:\n*   **Create a budget****.** This may sound obvious, but if you haven't created a budget, you don't have a clear view of money coming in and money going out. Budgeting can help you live within your means by identifying places where you may be able to cut costs and redirect money to debt payments at least until your debt is paid down.\n*   **Consolidate debt****.** If you have multiple forms of high-interest debt, such as several credit cards, another option is to consolidate them into one account, ideally with a lower interest rate. One way to do this is with a low-interest debt consolidation loan you can use to pay off your other debts. Then you're left with one monthly payment, which can be easier to manage than having multiple accounts with different due dates, interest rates and payment amounts. If you have high-interest credit card debt, another option is to do a balance transfer to a credit card with an introductory 0% APR period.\n*   **Consider credit counseling and debt management.** If you're unable to wrangle your debt on your own, you could meet with a nonprofit credit counseling agency, which can help you form a strategy and create a budget. They can also put you on a debt management plan, in which they may be able to negotiate lower interest rates with your creditors. With this plan, you make one monthly payment to the agency, and they distribute it to your creditors. END
 TITLE: Should I Get a Second Job to Pay Off Debt? CONTENT: Weigh Your Options\n------------------\nWhile getting a second job to pay off debt may be a viable option, it may not be right for you—or the extra income may not be enough. If you have high-interest debt and are considering taking out a loan, it's free to check debt consolidation loans at Experian CreditMatch™ that are customized according to your credit profile.\nPaying down your debt can bring you a lot of personal satisfaction, and can help you save money that's better put toward personal financial goals like buying a house or saving for retirement. END
 TITLE: How Do Medical Bill Payment Plans Work? CONTENT: Are There Payment Plans for Medical Bills?\n------------------------------------------\nMedical bill payment plans allow the patient to pay off what they owe for a service over time rather than in a lump sum. The arrangement can vary, though, depending on the health care provider and the type of service. END
 TITLE: How Do Medical Bill Payment Plans Work? CONTENT: How to Pay for Medical Expenses When Money Is Tight\n---------------------------------------------------\nGetting on a medical bill payment plan won't guarantee that you'll be able to afford to pay off your balance. If you need more help paying medical bills, there are a few options you can consider.\nFor starters, request an itemized bill if you don't already have one, and review it for double charges or for services that you didn't receive. Also, make sure your insurance company paid everything it was supposed to—depending on how health care providers code services, it may not get covered even if it's supposed to be. Check your benefits and call your insurance provider if you think a service or procedure should have been covered. When you talk to your insurance company, be sure to note who you talked to and what exactly was discussed.\nIf you can reduce your bill through these efforts, it could make a huge difference. If they don't solve your problem, however, there are some other ways to get help paying your medical debt.\nConsider reaching out to government programs. For instance, you may qualify for Medicaid, which provides free or low-cost medical benefits to those who don't make a lot of money. If you have kids, you may also be able to apply for the Children's Health Insurance Program (CHIP), which will cover them for medical and dental care until they reach age 19.\nAlso, look to companies and nonprofit organizations for assistance programs. Some examples include:\n*   Pharmaceutical company patient assistance programs.\n*   CancerCare for specific cancer diagnoses.\n*   [HealthWell Foundation]([]=open) for a variety of diseases.\n*   Leukemia & Lymphoma Society for patients with those diseases.\n*   Patient Access Network Foundation for several different diseases.\nAdditionally, many states have laws that limit how much a hospital can charge if a patient's income meets low-income criteria based on the poverty guidelines for that state. END
 TITLE: How Do Medical Bill Payment Plans Work? CONTENT: How Hospitals Are Helping Consumers With Medical Bills\n------------------------------------------------------\nPersonalized payment plans are the primary way hospitals and other health care providers assist patients with medical bills. The use of these plans has increased significantly in some organizations and is present in 1 in 5 outstanding patient accounts, according to Experian Health.\nHowever, if you're having a hard time even with a payment plan, hospitals have an incentive to help you pay your medical bills and may offer more help.\n\"With consumers that are really in a difficult financial situation,\" Baltzer says. \"Most providers—particularly nonprofit providers, but even some for-profit providers—offer financial assistance programs.\" This assistance often comes in the form of a discount, he adds.\nSo if you have medical bills and you're struggling to get by, don't hesitate to reach out to your health care provider to find out if relief is available.\nThis is especially true if you don't have insurance coverage. \"If someone is truly uninsured, \\[they'll receive\\] a discounted rate,\" Baltzer says. END
 TITLE: How Do Medical Bill Payment Plans Work? CONTENT: Avoid Letting Your Medical Bills Go Unpaid\n------------------------------------------\nEven if you don't think you can pay your medical bills, try not to stop making payments altogether. If you leave your bill unpaid for too long, it could impact your credit.\nMost health care providers work with what they call bad debt agencies if your bills go unpaid for a while, say 90 days, Baltzer says. So at that point, you may start getting calls from another company looking to collect the amount that you owe.\nAt some point, though—Baltzer says after about 180 days of non-payment—providers may choose to report your bill to the credit bureaus. \"That's not universal,\" he adds. But if your bill does get reported as unpaid, it could damage your credit score significantly. So the sooner you reach out to your health care provider, the better. END
 TITLE: How to Pay Off Debt Listed on Your Credit Report CONTENT: Check Your Credit Report to Find Out Your Debt\n----------------------------------------------\nWhether or not you're paying off debt, it's important to review your credit report regularly to ensure the information is accurate.\nInaccuracies are rare, but they can happen, so you'll want to make sure to match up the balance and payment amounts with your own records. Also, look for accounts you don't recognize—it's possible that someone may have used your information to open a new credit account fraudulently, and you shouldn't be liable for that.\nIf you find inaccurate, unsubstantiated or fraudulent information, you can file a dispute with the credit reporting agencies, which will investigate the claim and have the information corrected or removed if a discrepancy is found.\nPaying down your debts is obviously an important step in ensuring your financial stability, and doing so reliably can help you build a healthy credit score. How much debt you owe is the second most influential factor in your FICO® credit score, and it takes into consideration your credit card balances as well as the remaining balances of your loans (including student loans).\nThe only factor that's more important than amounts owed is your payment history. That's why it's important to keep in mind that if you don't make payments on your debts, it can damage your credit score. What's more, late payments and collection accounts can remain on your credit report for seven years, regardless of if and when you get current on your payments. END
 TITLE: How to Pay Off Debt Listed on Your Credit Report CONTENT: Make a Plan to Pay Off Your Debt\n--------------------------------\nOnce you've reviewed the debts listed on your credit report, take some time to consider the different paths you can take to pay them off. Here are some of the best options you can choose. END
 TITLE: How to Pay Off Debt Listed on Your Credit Report CONTENT: Maintain Good Spending and Credit Habits\n----------------------------------------\nRegardless of your current financial situation, make it a goal to develop good financial habits that can help you gain control over your debt.\nAn important step in making that happen is to stay on top of your credit by monitoring it closely for balances changes, missed payments and credit score changes. Building a good credit history can make it easier to qualify for affordable credit in the future, such as a low-interest car loan or home mortgage.\nIt's also a good idea to create and maintain a budget. At the very least, a budget will let you know exactly where your money is going. With that information in hand, you can develop a strategy to allocate your money in a way that helps you achieve your financial goals—for example, you may want to cut back on discretionary spending to put more of your money toward debt.\nIn addition to focusing on debt, it's also crucial that you build an emergency fund. Many people go into debt because of emergency expenses they can't afford, and having some money stashed away for a rainy day can help mitigate that risk.\nAs you work to develop good money habits, you'll be able to build a good foundation for your financial plan. END
 TITLE: How to Pay Off Debt Listed on Your Credit Report CONTENT: Avoid the Temptation to Let Up\n------------------------------\nOnce you've paid off all your debt, you may be tempted to focus a little less on your money management. But if you're not careful, it's easy to slip back into old habits, and you could run into trouble again.\nContinue to monitor your credit regularly and stay on top of your budget. Also, evaluate your progress consistently to make sure you're on the right track to meet your goals and make adjustments as needed. Paying off debt and building financial security can be a lifelong process, and it's important to stay disciplined in your efforts. END
 TITLE: How to Get a Debt Consolidation Loan During a Recession CONTENT: How Debt Consolidation Loans Work\n---------------------------------\nAs the name implies, debt consolidation loans offer a way to consolidate your debts. They work like this: You apply for a new loan, use the money from that loan to pay off your debts, and then pay back the debt consolidation loan in monthly installments.\nSome debt consolidation loans are specifically created and marketed for that purpose, with lenders sending the money directly to your creditors. It's also common to simply use a personal loan to pay off debts and consolidate debt that way (if you go this route, pay your bills ASAP so you aren't tempted to spend the money elsewhere).\nConsolidating debt can have advantages in certain situations, and help you do the following:\n*   **Streamline your bills**: Consolidating debt eliminates the need to juggle multiple due dates, payments and interest rates. Not only could that reduce stress, but it could also improve your ability to budget for the future, since you'll know exactly what your monthly payment will be—and for how long you'll be paying it.\n*   **Free up some room in your budget**: In many cases, your total monthly payment will decrease due to a lower interest rate, extended repayment term or both. Personal loans tend to have a lower interest rate, on average, so consolidating high credit card balances can save you a considerable amount in interest charges.\n*   **Potentially increase credit scores**: Personal loans don't count toward your credit utilization ratio, which is a major factor in your credit scores. Using a personal loan to pay off a maxed-out credit card could help you improve your credit scores if it drastically reduces your credit utilization. Debt consolidation might also make it easier to pay your bills on time and avoid late payments from appearing on your report.\nThere are, however, some things to keep in mind when consolidating debt:\n*   **It could result in higher costs over time.** Debt consolidation loans can lower your monthly payments, but some may do so by extending the length of your repayment term. That means you'll ultimately pay more in interest over the life of your loan. Many personal loans also come with origination fees or prepayment penalties.\n*   **Lower credit scores may limit your options.** It's possible to get a debt consolidation loan with bad credit, but you might end up with an interest rate that's higher than your current debts. To avoid a surprise, try using Experian CreditMatch™ to get prequalifed for a debt consolidation loan.\n*   **Consolidation won't make your debt disappear.** Getting a debt consolidation loan won't address your debt other than shifting it to a new loan. You'll still be responsible for paying it off. Another thing: If you consolidate debt but don't change your behavior, you could end up putting more money on those now-empty credit cards—and be in a worse position than before. END
 TITLE: How to Get a Debt Consolidation Loan During a Recession CONTENT: Can You Get Consolidation Loans in an Economic Downturn?\n--------------------------------------------------------\nNow for the million-dollar question: Can you get debt consolidation loans in an economic downturn, such as the one caused by the coronavirus pandemic? The short answer is yes; the longer answer is it depends on the lender and borrower.\n\"Debt consolidation loans are still available even in this pandemic,\" says Mark Lorimer, chief administrative officer of LendingPoint. \"By July, LendingPoint was back to originating at the same levels as 2019. We expect September through year-end to be record funding levels every month.\"\nRenaud Laplanche, CEO of Upgrade, had similar news to share. \"There is never a bad time to pay off high-interest credit cards with a lower-interest loan,\" Laplanche says. \"In fact, we extended more credit in August than we did in February before the start of the COVID crisis.\"\nThough many lenders are still giving out loans, some may have altered their procedures or become more stringent in their approval processes. Lorimer, for instance, noted that more lenders now verify employment and income before issuing loans.\nIbo Dusi, chief operations officer of Happy Money, which issues debt consolidation loans through Payoff, agreed. \"With high unemployment, having verifiable income is key to securing a loan,\" he says. \"Make sure you will be able to provide full documentation in the approval process.\"\nDusi also pointed out that, according to research from Happy Money, \"people who \\[reduce\\] debt early in a recession versus taking on additional debt end up with less stress and are better equipped financially when conditions start to improve.\" END
 TITLE: How to Get a Debt Consolidation Loan During a Recession CONTENT: What to Do Before Applying for a Debt Consolidation Loan\n--------------------------------------------------------\nThinking about applying for a debt consolidation loan? Your first step should be pulling your credit reports and checking your credit scores.\nIf they're in good shape, you can skip to the next section below.\nBut if they're \"fair\" or \"poor,\" you might want to improve your scores before moving forward. Doing so would likely open you up to more options and lower interest rates. If you're having a hard time getting qualified for a loan through traditional lenders, you may want to look into lenders such as Upstart or LendingPoint that factor in \"alternative data\" including job history, income and education when determining eligibility and interest rates. END
 TITLE: How to Get a Debt Consolidation Loan During a Recession CONTENT: Where to Find Debt Consolidation Loans\n--------------------------------------\nIf you're ready to look for a debt consolidation loan, one place to begin your search is by signing in or creating an account with Experian CreditMatch™, which can present you with debt consolidation loans suited to your credit profile.\nWhen you're evaluating the loans, consider the repayment terms, fees and minimum credit scores. If a lender offers prequalifications using a soft credit check, you can also compare interest rates without it affecting your credit scores. END
 TITLE: How to Get a Debt Consolidation Loan During a Recession CONTENT: ### SoFi\nApply\non SoFi's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $5,000 to $100,000\nEst. monthly payment: $217 to $4,944\nGrace period: 10 days\nApplication fee: $0\n##### Loan Details\n*   Personal Loans with low fixed rates\n*   Borrow up to $100,000\n*   No Origination Fees, No Prepayment Penalties, and No Late or Overdraft Fees\n*   Simple online application with live support 7 days a week\n*   Apply Now\nDisclosure\nIf you have strong credit scores, look no further than SoFi, which offers loans of up to $100,000 with fixed interest rates from 4.99% to 19.63%. Best of all, it doesn't charge any origination, prepayment or late fees (though, for the sake of your credit scores, you should still pay on time). END
 TITLE: How to Get a Debt Consolidation Loan During a Recession CONTENT: ### Payoff\nApply\non Payoff's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $5,000 to $40,000\nEst. monthly payment: $219 to $2,075\nGrace period: 10 days\nApplication fee: $0\n##### Loan Details\n*   5.99% - 24.99% APR\n*   Pay off high-interest credit card balances and save\n*   Quickly check your rate without affecting your credit score\n*   No prepayment, late, or check-processing fees\n*   Members see an average FICO® Score boost of 40 points when paying down credit card balances\nDisclosure\nIf you have high-interest credit card debt and decent credit, then Payoff's loans were designed for you. You can borrow what you have in credit card debt (up to $40,000), and send the loan amount directly to your creditors. While the lender does charge an origination fee of up to 5%, it doesn't have prepayment or late fees. END
 TITLE: How to Get a Debt Consolidation Loan During a Recession CONTENT: ### Avant\nApply\non Avant's website\n**Recommended FICO® Score\\***\nFair - Very Good\nAmount\nAvailable loan amounts: $2,000 to $35,000\nEst. monthly payment: $91 to $2,048\nGrace period: 10 days\nApplication fee: $0\n##### Loan Details\n*   Personal loans from $2,000 to $35,0001 entirely online\n*   Checking your loan options will not affect your credit score\n*   Funding as soon as next business day2\n*   No collateral needed and customer support available 7 days a week\nDisclosure\nIf you have fair credit scores or better, Avant is a solid choice. It features debt consolidation loans of up to $35,000, repayment terms of up to 60 months and administration fees (similar to origination fees) that max out at 4.75%. Most important, it's known for offering reasonable interest rates to applicants with fair credit.\n### Upgrade\nApply\non Upgrade's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,095\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Affordable loans from $1,000 - $50,000 with low fixed rates that will never change, affordable monthly payments, and no prepayment penalties\n*   Quick online application -- get pre-approved in just minutes\n*   Checking your rate won't impact your credit score\n*   Review multiple loan options so you can pick the amount and term that fits your budget and timeline\n*   With automatic payments and a customizable due date, managing your account is easy and you'll be able to circle the date on your calendar when you'll be debt free\nDisclosure\nAnother option for those with less-than-perfect credit, Upgrade has debt consolidation loans of up to $50,000 with origination fees between 2.9% and 8%. Laplanche, the company's CEO, also noted that Upgrade has \"a number of features that help improve someone's chances of getting approved or qualifying for a lower rate,\" such as adding a co-borrower.\n### LendingPoint\nApply\non LendingPoint's website\n**Recommended FICO® Score\\***\nFair - Good\nAmount\nAvailable loan amounts: $2,000 to $25,000\nEst. monthly payment: $95 to $1,437\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   Personal loans from $2,000 to $25,000\n*   Rates from 15.49% to 35.99% APR with no prepayment penalties\n*   Check your rate for free without impacting your credit score\n*   Qualified customers receive offers in three simple steps, and funds in as little as 24 hours if approved\n*   Simple and Secure - quick online application\n*   LendingPoint's customer success representatives are available online or by phone 24\/7, just call 888-969-0959\n*   Terms from 24 - 60 months\nDisclosure\nIf your credit scores are limiting your options, LendingPoint could be a good lender to work with when consolidating your debt. Besides your credit scores and history, it also considers your job history, income and bank records when deciding whether to extend you a loan. Though its interest rates are high, it offers the opportunity for fixed monthly payments without prepayment penalties. END
 TITLE: How to Get a Debt Consolidation Loan During a Recession CONTENT: ### Upgrade\nApply\non Upgrade's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,095\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Affordable loans from $1,000 - $50,000 with low fixed rates that will never change, affordable monthly payments, and no prepayment penalties\n*   Quick online application -- get pre-approved in just minutes\n*   Checking your rate won't impact your credit score\n*   Review multiple loan options so you can pick the amount and term that fits your budget and timeline\n*   With automatic payments and a customizable due date, managing your account is easy and you'll be able to circle the date on your calendar when you'll be debt free\nDisclosure\nAnother option for those with less-than-perfect credit, Upgrade has debt consolidation loans of up to $50,000 with origination fees between 2.9% and 8%. Laplanche, the company's CEO, also noted that Upgrade has \"a number of features that help improve someone's chances of getting approved or qualifying for a lower rate,\" such as adding a co-borrower. END
 TITLE: How to Get a Debt Consolidation Loan During a Recession CONTENT: ### LendingPoint\nApply\non LendingPoint's website\n**Recommended FICO® Score\\***\nFair - Good\nAmount\nAvailable loan amounts: $2,000 to $25,000\nEst. monthly payment: $95 to $1,437\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   Personal loans from $2,000 to $25,000\n*   Rates from 15.49% to 35.99% APR with no prepayment penalties\n*   Check your rate for free without impacting your credit score\n*   Qualified customers receive offers in three simple steps, and funds in as little as 24 hours if approved\n*   Simple and Secure - quick online application\n*   LendingPoint's customer success representatives are available online or by phone 24\/7, just call 888-969-0959\n*   Terms from 24 - 60 months\nDisclosure\nIf your credit scores are limiting your options, LendingPoint could be a good lender to work with when consolidating your debt. Besides your credit scores and history, it also considers your job history, income and bank records when deciding whether to extend you a loan. Though its interest rates are high, it offers the opportunity for fixed monthly payments without prepayment penalties. END
 TITLE: What Is the Best Way to Get Out of Debt? CONTENT: 1\\. Create a Budget\n-------------------\nA budget can be an effective weapon against debt, and it's one of the easiest ways to tackle what you owe. The primary objective of a budget is to spend less than what you earn—in this case, so you can put that extra money toward paying off debt.\nStart creating your budget by calculating your typical monthly income. If your income isn't consistent, take an average of the past three to six months, and make adjustments based on what you know about your situation. Then look at your expenses from the past few months to get an idea of what you usually spend each month.\nTo help calculate your expenses, first divide them into the two general buckets of fixed expenses and variable expenses. Fixed spending includes rent, utilities and car payments; variable spending includes eating out, entertainment and household items. Use this system to get the most accurate picture possible—and to figure out which areas you might be able to cut back on to free up extra money for debt payment.\nThen make a plan for how you'll spend your money each month going forward, allocating some of the money you'd normally spend in discretionary areas to extra debt payment instead. During the month, keep track of your expenses to make sure you're sticking to your spending goals.\nIf your money situation is so tight that you don't have much discretionary spending, creating a budget may not make a big difference. But it will help you understand where your money is coming from and going to, and show you areas where you could stand to spend less. END
 TITLE: What Is the Best Way to Get Out of Debt? CONTENT: 2\\. Earn Some Extra Income\n--------------------------\nEarning extra cash can help you eliminate your debt faster. Even if you only have time in your schedule to make a little extra here and there, it can make a big difference in the long run. Here are a few ideas to get you started:\n*   **Sell your extra stuff**: If you have any items around the house that you no longer use, consider selling it through an online marketplace. Depending on what you're willing to part with, you may be able to earn a lot of money this way. Avoid selling anything you're likely to need to buy again soon.\n*   **Work overtime**: If your employer offers overtime hours and you have the ability to work extra, you can put all that extra cash directly toward your debt. Just remember that you'll still need to pay taxes and other deductions on your overtime earnings.\n*   **Get a second job**: Not everyone has the time to take a second job, especially if you have a family to take care of at home. But if you can, consider adding another job temporarily while you're working to eliminate your debt. You can also look at online job boards for odd jobs that don't require a set schedule.\n*   **Start a side business**: If you have a hobby or talent, consider starting a side business that allows you to earn money doing it. Maybe it's creating jewelry and selling it on Etsy, or freelancing as a writer, editor or graphic designer. If you have a marketable skill, starting a side business could give you more flexibility than a second job.\n*   **Reduce your withholding**: If you normally get a big tax refund each year, you could get more of that money into your paycheck if you have less taken out for taxes. Speak with your payroll manager about reducing your withholding so you'll have more take-home pay you can use to pay down debt. You won't get that big check come April, but you could end up paying less in interest and paying off your debt faster.\nWhile these aren't the only ways to make extra money quickly, they can help you get an idea of what options are available based on your needs and available time. END
 TITLE: What Is the Best Way to Get Out of Debt? CONTENT: 3\\. Consider Debt Consolidation\n-------------------------------\nDepending on the type of debt you have, you may be able to save money by consolidating it. While there are different methods you can use to consolidate debt, the main goal is to transfer high-interest debt to a low-interest loan or credit card, which can save you hundreds, if not thousands, of dollars in interest. Here are some potential options.\n### Balance Transfer Credit Card\nIf your credit is generally in good shape, you may be able to qualify for a balance transfer credit card. These cards usually offer an introductory 0% annual percentage rate (APR) promotion when you transfer a balance from another credit card or cards.\nIf you pay off the balance during the promotional period, which typically ranges from 12 to 21 months with major balance transfer cards, you won't pay any interest on the balance transferred. Once the promotion ends, however, you will be charged the card's regular APR on the remaining balance.\nA couple of things to keep in mind:\n*   Many of these cards charge a balance transfer fee, which is typically 3% to 5% of the transfer amount. Some cards, however, opt not to assess this fee on introductory transfers.\n*   If transferring a balance causes you to max out the new card or get close to it, the high credit utilization rate, or amount of available credit you're using, could damage your credit score until you pay it down.\nA balance transfer card can be great if you have a lot of credit card debt and can be disciplined enough to pay off the balance before the promotional period ends, or shortly thereafter. If you think you might be tempted to pay just the minimum on the new card, however, this probably isn't a good choice.\n### Debt Consolidation Loans\nA debt consolidation loan is a personal loan used specifically to pay off other debts. You can consolidate many different loan types with a consolidation loan and, depending on your credit situation, you may be able to score a lower interest rate than what you're currently paying.\nUnlike balance transfer credit cards, there is no 0% APR option. Consolidation loans have a set repayment term, which gives you more certainty about what you need to pay and when you'll be debt-free. If you choose to, you can also pay more than the set monthly amount. Also, there are no potential problems with having a high credit utilization because installment loans don't factor into that calculation.\nIf your credit isn't in good shape, though, you'll be hard-pressed to find a consolidation loan with a relatively low interest rate. If the rate is significantly higher than what you're paying, skip this option. But even if it's about the same, it may be better to have a loan with a set monthly payment than a credit card balance with no end in sight. END
 TITLE: What Is the Best Way to Get Out of Debt? CONTENT: 4\\. Look Into Debt Repayment Strategies\n---------------------------------------\nRegardless of what else you're doing to get out of debt, it's important to think about how to prioritize which debts to pay off first. For revolving debt such as credit cards and lines of credit, two main options to consider are the debt snowball method and the debt avalanche method:\n*   **Debt snowball method**: With this approach, you focus on paying off your debt with the lowest balance first while paying minimum payments on your other debts. Once it's gone, take the amount you were paying on it and apply it to the debt with the next-lowest balance, and so on.\n*   **Debt avalanche method**: This strategy uses the same process as the debt snowball method, but instead of focusing on your debts based on their balances, you target the debt with the highest interest rate first. Then once that's paid off, apply the money you were paying to the debt with the next-highest rate, and so on.\nWhich method works better? That depends on your goals and preferences. With the debt snowball method, the goal is to take wins early, which can make a big difference if you have several credit accounts. Paying off smaller debts quickly can help you stay motivated with your broader goal.\nWith the debt avalanche method, the goal is to save as much money as possible on interest. By eliminating higher interest debts first, you'll achieve that goal. That said, the difference in interest savings between the two approaches isn't always huge. Consider using an online calculator to see which is better for you. END
 TITLE: What Is the Best Way to Get Out of Debt? CONTENT: 5\\. Consider Getting Help With Your Debt\n----------------------------------------\nIf your financial situation is dire and you don't see a way out with some of the other steps we've covered, it may be worth seeking help. Credit counseling agencies and debt settlement companies may be able to assist you. Here's how they work and what to know about each.\n### Credit Counseling\nA credit counselor can help you by setting up a debt-management plan. With this plan, you make one monthly payment to the credit counseling agency, and it divvies it up into separate payments to your creditors.\nOne of the benefits of this option is that a credit counseling agency can negotiate lower interest rates with your creditors, which can potentially reduce how much you pay each month and save you money on interest.\nAlso, you're continuing to pay your bills on time, so you shouldn't expect a drop in your credit scores. However, you won't be able to apply for new credit while you're on the plan, which can take several years, depending on how much you owe. Also, you may be required to close your credit card accounts, so you don't accrue new debt while you're making payments, which can potentially hurt your credit score.\nIt's worth considering a debt-management plan if you're mostly current on payments, but your credit isn't good enough for debt consolidation.\n### Debt Settlement\nThe objective of this approach is to settle for less than what you owe. You may have a hard time doing this on your own, so you'll likely need to enlist the help of a debt-settlement company. Because of the damage it can do to your credit, debt settlement should be used only as a last resort.\nInstead of creating a repayment plan as with a credit counselor, debt-settlement companies have you stop making payments to your creditors. Instead, you'll make a monthly payment into an account with the company, which it eventually uses to settle once the balance is high enough.\nDebt settlement can potentially save you money in the short term because you're paying less than what you originally owed. But it can be much more expensive in the long run.\nFor starters, you may be on the hook to pay taxes on the amount of debt that was forgiven. Also, because you stopped making payments and paid less than the agreed-upon amount, debt settlement can wreck your credit, making it difficult to get approved for credit in the future. Even if you do, you can expect higher interest rates until your credit history recovers.\nIn general, debt settlement is worth considering only if you're already behind on payments, and you have no other options. END
 TITLE: What Is the Best Way to Get Out of Debt? CONTENT: Consider Your Situation for the Right Approach\n----------------------------------------------\nJust like there's no single way to get into debt, there's no one-size-fits-all solution for getting out of it. As you consider these and other potential steps, think about which approach is the best fit for your particular needs, goals and preferences. While that may end up being different from how others might suggest you do things, the important thing is that you make meaningful progress toward becoming debt-free. END
 TITLE: What Is Debt Settlement? CONTENT: How Does Debt Settlement Work?\n------------------------------\nWith debt settlement, debt relief companies typically have you stop making all payments to your creditors and instead have you make monthly payments into a savings account they set up for you. They'll then try to use the money in that account, even if it's less than you owe, to pay off your debt. Depending on how many creditors you have and the size of your outstanding debt, collecting enough money to make a worthwhile offer to lenders could take as long as three or four years.\nWhen the debt relief company determines it has sufficient funds, it reaches out to your creditors on your behalf, offering partial payment of your debts as a preferable alternative to getting no payment at all. The implication is that if you file for bankruptcy, lenders may not ultimately collect any of what they are owed.\nIf the negotiations succeed, the debt settlement company charges you a percentage (20% to 25% is common) of either the amount it saves you or of your total debt. Debt settlement accounts often charge additional fees as well (for setting up and maintaining your savings account, for example). END
 TITLE: What Is Debt Settlement? CONTENT: What Is the Difference Between Debt Management and Debt Settlement?\n-------------------------------------------------------------------\nIf you're in dire financial straits and considering debt settlement, it's probably a good idea to investigate the similarly named but significantly different option called debt management.\nLike debt settlement companies, debt management programs (DMPs) can help you reorganize your finances, and the provider of a DMP can intervene with creditors on your behalf to help negotiate interest rate reductions, extended repayment time spans settlements. Unlike a debt settlement company, DMP providers have a goal of helping you pay your debt in full in a way that does minimal harm to your credit.\nAnother important distinction is that DMP providers are nonprofit companies, in contrast to for-profit debt settlement companies. That doesn't mean DMP services are free (although they may be if you meet certain income requirements), but it does mean DMP providers are less likely to charge high fees or to insist you use their services when other options are more viable.\nDebt management programs can take a toll on your credit as successful DMP participation can result in creditors closing your accounts. Whenever you close an account, it's important to understand how it will affect your credit utilization ratio, which measures the percentage of your total credit limit you're using. Credit utilization is the second-most important factor in your credit scores, and closing accounts may cause it to jump—potentially dinging your credit scores. Still, following a DMP repayment plan will likely leave your credit in a much better place than would debt settlement. END
 TITLE: What Is Debt Settlement? CONTENT: Does Debt Settlement Affect Your Credit?\n----------------------------------------\nThe single biggest factor in your credit scores is your payment history. If you're a candidate for debt settlement, you may have already missed or made late payments, but if your payment history is good going into the debt settlement process, it won't be for long. A debt settlement company's instructions to withhold payments from your creditors (and instead make payments into a savings account) will certainly bring a rapid, steep drop in credit score if you haven't missed any payments, and it'll likely drag down your scores even if you've had a spotty payment history.\nIn addition, willful nonpayment of creditors over a span of months or years will likely lead some creditors to charge off your debts and sell them to collection agencies—events that lead to significant negative credit report entries. These entries stay on your credit report for seven years from the date of the initial delinquency that caused them.\nThe combination of credit score damage and negative credit report entries can significantly limit lenders' willingness to issue you loans or credit. END
 TITLE: What Is Debt Settlement? CONTENT: Is Debt Settlement Worth It?\n----------------------------\nBankruptcy has the most severe negative impact on personal credit of any single event, and debt settlement should only be considered as a last-ditch alternative to filing for bankruptcy—assuming all other options have been exhausted. Be aware, however, that for at least some individuals, debt settlement may not provide any meaningful benefit over bankruptcy.\nDepending on how high your credit score was prior to pursuing debt settlement, and how many other negative events you have on your credit report when you begin the process, debt settlement can be just as damaging to your credit scores as a bankruptcy. Associated negative credit score entries (missed payments, charge-offs and accounts sold to collection) all stay on your credit report for seven years from the date of the first missed payments that caused them—the same amount of time that Chapter 13 bankruptcy stays on your credit report.\nThe credit score impacts of all these negative events begin to diminish before their seven-year expiration date, but since Chapter 13 entails structured repayments to creditors similar to a debt settlement payment plan, it could cost you less and leave your credit in better shape after seven years than debt settlement does.\nDepending on your total amount of debt and the way a debt settlement company may structure its fees, expenses associated with debt settlement can exceed those associated with a bankruptcy filing. (This is especially true if you qualify for Chapter 7 bankruptcy,)\nIf your creditors refuse the terms offered by your debt settlement company, you may have little choice but to file for bankruptcy anyway—but only after racking up fee payments to the settlement company and losing months or years you otherwise could have spent rebuilding your credit.\nDebt settlement companies are a viable option for some consumers seeking to avoid bankruptcy, but the risk and expense they bring mean may mean that debt management programs, and even bankruptcy itself, may be better options. END
 TITLE: What Is Debt-to-Income Ratio and How Do I Calculate It? CONTENT: Your debt-to-income ratio, often called DTI, is how much of your gross income goes toward debt payments every month. From a lender's perspective, it shows how much more debt you can reasonably take on given your current income and debt situation.\nThere are two types of DTI that you may run into: front-end and back-end. Front-end DTI represents only your monthly housing costs and how it relates to your gross monthly income, while back-end DTI includes all your monthly debt obligations. Most lenders use back-end DTI only, but mortgage lenders typically use both.\nThe higher your ratio is, the more risk you pose to a lender because it may be more difficult for you to keep up with your payments compared with a low-DTI borrower.\nIf your DTI is relatively high, a lender may charge a higher interest rate to compensate for their added risk. You may even be denied because your DTI is too high. END
 TITLE: What Is Debt-to-Income Ratio and How Do I Calculate It? CONTENT: How Is Debt-to-Income Ratio Calculated?\n---------------------------------------\nTo calculate your debt-to-income ratio, establish what your total monthly debt obligation is and divide that figure by your gross monthly income.\nFor example, if each month you pay $1,000 for your mortgage payment, $250 for your auto loan, $100 for your student loan and $200 for various other debt, your total monthly debt obligation—the sum of all your monthly payments—is $1,550.\nTo calculate your gross monthly income, take your salary before taxes and other deductions, and divide it by 12. So if your annual salary is $60,000, your gross monthly income would be $5,000.\nNow take your total monthly debt obligations ($1,550) and divide them by your gross monthly salary ($5,000). Then convert the resulting number (0.31) into a percentage by multiplying it by 100; in this case, 31% is your DTI.\nIf you're buying a house and applying for a mortgage loan, the lender will use the calculations above to calculate your back-end DTI, but will also consider your front-end DTI. To calculate that, simply divide the mortgage payment ($1,000) by your gross monthly income ($5,000), and you'll get 0.20, or 20%. END
 TITLE: What Is Debt-to-Income Ratio and How Do I Calculate It? CONTENT: How Does Debt-to-Income Ratio Affect Credit?\n--------------------------------------------\nYour DTI doesn't directly affect your credit scores because credit scoring models ignore income information. However, amount owed plays a factor in your credit utilization rate, which is the second-most influential factor in your FICO® Score☉ .\nYour credit utilization rate is your credit card balances divided by total credit limits. It indicates how much of your available credit you're using. Credit experts recommend keeping your utilization rate below 30%, and the lower it is, the better. For top credit scores, keep your utilization under 7%.\nBut your DTI also includes how much you owe on other types of credit accounts, including installment loans and other revolving credit lines. The more debt you're carrying on credit cards and other loans, and the higher your utilization rate, the more negatively it can impact your credit scores. END
 TITLE: What Is Debt-to-Income Ratio and How Do I Calculate It? CONTENT: What Is a Good Debt-to-Income Ratio?\n------------------------------------\nYour DTI helps lenders quickly see how your debt matches up to your income, giving them an idea of your ability to pay any new debt every month. Generally, the lower your DTI, the better, because this shows lenders you have the extra income after your current debt obligations to take on new loan payments.\nThe ideal DTI, however, depends on the type of loan you're applying for and the lender. For example, when applying for a personal loan, a higher DTI may be acceptable; but when applying for a mortgage, the lender may have stricter standards.\nWith mortgage loans, for instance, lenders may look for a front-end DTI of 28% or lower—the maximum for an FHA loan is 31%—and a back-end ratio less than 43% (though sometimes less than 36%). Conventional-loan guidelines by Fannie Mae and Freddie Mac allow for back-end DTIs as high as 50% in some circumstances.\nWhile other loan types are available to those with a DTI over 50%, a ratio that high can restrict your ability to borrow. Each lender has its own criteria for determining eligibility, and a high DTI can put you at risk of getting denied or getting approved but with a high interest rate.\nWhile it's important to work to reduce your DTI, remember that it's not the only factor lenders evaluate. They'll also look at your credit reports and credit scores, your employment situation and other important factors. As you consider how to improve your chances of getting approved for a loan with favorable terms, be sure to look at the whole picture and how you can represent as low of a risk as possible to future lenders. END
 TITLE: Credit Cards vs. Loans: Which Should You Pay Off First? CONTENT: How to Determine Which Debt to Pay Off First\n--------------------------------------------\nTypically—though not always—the interest rates on loans are lower than on credit cards. Personal loans, auto loans and mortgages are examples of installment loans that you pay back with monthly fixed payments over a set period of time.\nIn addition to interest rate, you'll see the term APR (annual percentage rate) used for installment loans and credit cards. For installment loans, the APR reflects the total cost of the loan, including fees such as origination fees. For credit cards, the interest rate and APR are the same thing.\nThe average credit card APR as of November 2019 was around 17%; yours could be higher or lower depending on your personal credit profile when you applied. Personal loan APRs, for instance, start at 6%, though they can reach 36%, also depending on your credit and type of loan.\nTo find your own credit cards' or loans' rates, take a look at your monthly statements or contact your lender if you're unsure. Start by sending extra money to the debt with the highest APR—which will generally be a credit card. That way, you'll begin cutting down on the principal balance of your debt, and you'll pay interest on a reduced amount.\nMake sure whichever debt you decide to attack first, you continue paying your monthly bills on the rest of your debts to avoid missing a payment. A history of on-time payments is the largest contributor to a strong credit score. END
 TITLE: Credit Cards vs. Loans: Which Should You Pay Off First? CONTENT: Paying Off Credit Card Debt\n---------------------------\nIf you have several credit cards, first make a list of your current balances, APRs, minimum monthly payments and due dates. That will help you figure out how to begin your payoff journey. Here are a few paths you can take:\n*   **Debt avalanche method:** The most cost-saving payoff method is to target the credit card with the highest APR first, also known as the debt avalanche method. Using this strategy, you pay as much as you can on that card while you pay just the minimums on the rest of your cards. Once you pay off that card, you'll move to the card with the next-highest balance and employ the same strategy until all your cards are paid off.\n*   **Debt snowball method:** You might prefer paying off small balances first, which is known as the debt snowball method. Doing so won't save you as much money as paying off credit cards with the highest APRs first, but it can be effective if experiencing a series of small wins—by paying off accounts more quickly—encourages you to continue attacking debt.\n*   **Balance transfer credit card:** If you have good or excellent credit, you may also qualify for a balance transfer credit card. This gives you the opportunity to move multiple credit card balances to a single card, potentially at 0% APR for a period of time. You can pay off debt interest-free if you get rid of the balance by the time your promotional period ends—a crucial component of the strategy so you can avoid paying a much higher standard APR.\nAs an added bonus, paying off credit cards can also help improve your credit scores. The amount you owe on your credit cards compared with your total credit limit makes up your credit utilization ratio. Experts recommend limiting your utilization to 30% or less at all times to keep your scores strong, or below 7% for top scores. The more you pay down credit cards—without adding to debt—the lower your credit utilization will be. END
 TITLE: Credit Cards vs. Loans: Which Should You Pay Off First? CONTENT: Similar to the credit card payoff process, the best approach with installment loans is generally to focus on loans with the highest interest rates or APRs. In practice, that often means concentrating on car loans over mortgages, for example, and private student loans if they have higher rates than your federal student loans. In addition, because mortgages tend to be very large, long-term loans of up to 30 years, paying this loan off quickly might simply be unrealistic compared with paying off other, smaller installment loans over a relatively short time period.\nJust like you did for credit cards, list your loan balances, APRs, monthly payments and due dates to get yourself organized. With any extra money you can spare—potentially from increasing your income or cutting back on expenses—make extra payments toward the loan with the highest interest rate first.\nYou can also consider strategies to lower your loans' interest rates or monthly payments. That way, you can send more money to your bills and get out of debt more quickly. Here are some options:\n*   Refinance your mortgage to a lower interest rate, if you qualify for one, and put the savings toward other debts with higher interest.\n*   Refinance your student loans, which is a particularly smart strategy if you have high-interest private loans. Refinancing federal student loans isn't as safe a bet: You'll lose the ability to lower your monthly payments to a portion of your income and you'll forfeit access to potentially useful forgiveness programs.\n*   Opt for a debt consolidation loan, which allows you to roll multiple debts into a single personal loan with a fixed monthly payment. For debt consolidation to work, the interest rate you qualify for must be lower than the average rate of your current debts.\nTo make sure you can keep up with your loan payments, make a budget. You can do it yourself with a traditional spreadsheet or use one of the many free budgeting apps available online. Set up autopay on all your loan bills, either for the minimum payment or a larger amount if your lender allows for it. END
 TITLE: Credit Cards vs. Loans: Which Should You Pay Off First? CONTENT: Keep It Simple—and Start Now\n----------------------------\nThe decision to pay off debt is a major one, and figuring out where to start can be the hardest part.\nKeep it simple by focusing on your balances with the highest interest rates first, which will generally be credit cards. The same interest rate strategy applies when you're determining the best order to pay off your loans. Because this approach helps you save money on interest, you'll be able to free up cash to put toward other debts—and potentially achieve your debt-free goals sooner. END
 TITLE: Debt Relief: An Essential Guide CONTENT: What Are the Types of Debt Relief?\n----------------------------------\nThere are four types of debt relief that borrowers can use to work toward becoming debt-free. Depending on the severity of your financial situation and your ability to repay what you owe, one method may be better than the others. Here's a quick summary of each and when you might consider them.\n### Debt Consolidation\nDebt consolidation is the simplest form of debt relief, and you can accomplish it on your own. You can consolidate your debt by applying for a new loan or credit card and using it to pay off existing debts.\nThis strategy works best if you can qualify for a loan or credit card that offers a lower interest rate than what you're currently paying—that typically requires good or excellent credit, which means a FICO® Score☉ of 670 or higher.\nSome balance transfer credit cards offer introductory 0% annual percentage rate (APR) promotions that allow you to pay down your debt interest-free over a period of a year or more. This is an excellent strategy as long as you can pay off the transferred debt before the promotional period ends; otherwise, you'll owe interest on the remaining balance.\nIf you're trying to pay off high-interest debt with a loan, you could choose a personal consolidation loan or, if you own your home, a home equity loan or home equity line of credit. Just keep in mind that if you use your home as collateral for a loan, you risk losing it if you can't keep up with loan payments.\nDebt consolidation is best for borrowers who have a manageable amount of debt and have a relatively high credit score, which is necessary to qualify for favorable rates on a consolidation loan or credit card.\n### Credit Counseling\nIf you're having trouble making your monthly payments and your credit is less than perfect, working with a credit counseling agency could be a good next step.\nCredit counselors can not only help you with basic things like creating a budget, but they can also put you on what's called a debt management plan. With this arrangement, you make just one monthly payment to the credit counseling agency for all your unsecured debt obligations, such as credit cards and personal loans. The agency then uses that amount to make payments to your creditors on your behalf.\nCredit counseling agencies can negotiate lower interest rates with creditors, so you may end up saving money with this option. However, you may be required to close your credit card accounts, and you can't apply for new credit until you complete the debt management plan, which can take years.\nIf you're considering a debt management plan, make sure you're working with a nonprofit credit counseling agency, which can offer lower costs. You can find a nonprofit agency in your area through the National Foundation for Credit Counseling or the Financial Counseling Association of America.\n### Debt Settlement\nDebt settlement companies negotiate with your creditors to settle your unsecured debt for less than what you currently owe. Instead of creating a modified repayment plan like a credit counseling agency does, for-profit debt settlement companies encourage you to stop making payments on your debts and instead make payments into an account with the company.\nAs soon as your balance with the debt settlement company is high enough—the amount can depend on the company and type of debt—it will use the cash to negotiate with your creditors to settle for less than the current principal and interest amount.\nBecause debt settlement encourages you to stop making payments on your loans and credit cards for an indefinite period of time—and could cost you hundreds or even thousands of dollars in fees—it's not a recommended debt relief strategy.\n### Bankruptcy\nIf your debt situation is so dire that you can't even afford to make modified monthly payments on a debt management plan, bankruptcy may be the last resort option. A bankruptcy will do serious damage to your credit and will factor into your credit score for up to 10 years, which is why you should only consider it if you've exhausted your other options.\nThere are two types of consumer bankruptcy, including Chapter 7 and Chapter 13:\n*   **Chapter 7**: With this option, most of your assets are sold to pay off whatever you can, then the remainder of your debt is wiped out. It's designed for people with low incomes who can't afford a restructured debt repayment plan.\n*   **Chapter 13**: With this type of bankruptcy, your debt repayment plan is reorganized to make it affordable for you, and you must complete the new court-mandated repayment plan. The remaining balances left over at the end of the restructured repayment plan—which typically takes three to five years—are discharged.\nOne thing to keep in mind is that, like debt management plans and debt settlement agreements, filing bankruptcy typically won't get rid of your mortgage, auto or student loans. END
 TITLE: Debt Relief: An Essential Guide CONTENT: How Debt Relief May Help You\n----------------------------\nDepending on the type of debt relief you choose, there are many potential advantages of using these methods to become debt-free:\n*   With debt consolidation and a debt management plan, for instance, you could potentially get a lower interest rate, which can save you money on interest charges and also allow you to pay off your debt sooner because of the lower overall cost.\n*   Bankruptcy can also potentially get you out of debt without requiring you to pay the full amount of what you owe. And with Chapter 7 bankruptcy, you could even start rebuilding your credit history and financial life with a clean slate free of debt within just a few months.\nDepending on your situation, the actual results of debt relief can vary. But they may be better than the circumstances you currently find yourself in. END
 TITLE: Debt Relief: An Essential Guide CONTENT: What Are the Risks Associated With Debt Relief?\n-----------------------------------------------\nWhile there are some significant benefits of using certain debt relief methods to eliminate your debt, there are some potentially major drawbacks that may cause you to rethink your options:\n*   If you choose debt consolidation, some consolidation loans charge origination fees and most balance transfer credit cards charge balance transfer fees. These fees can limit the value of consolidation, though you can still save hundreds of dollars on interest despite them.\n*   There is no guarantee that your interest rate will be lower with debt consolidation or a debt management plan.\n*   There's no guarantee that a debt settlement company can negotiate a lower payment with your creditors. And even if it does, the process is likely to severely damage your credit.\n*   Credit counseling agencies and debt settlement companies typically charge fees for their services. While credit counseling agencies are typically much less expensive—a small upfront fee and an average of roughly $30 per month versus 15% to 25% of the settled amount with debt settlement firms—it's still a charge you'll need to consider with your plans.\n*   With debt settlement, the difference between what you owe and what you settle for may be considered taxable income. You may also open yourself up to lawsuits from your creditors because you've stopped making payments.\n*   Scammers may use the hope of debt relief through counseling and debt settlement to take advantage of you.\nAs you consider whether debt relief is right for you, consider how these potential drawbacks could affect you. In some cases, they may be better than the current situation, but they could also make things worse. END
 TITLE: Debt Relief: An Essential Guide CONTENT: How Debt Relief Can Affect My Credit Score\n------------------------------------------\nDepending on which debt relief method you choose, it could have a minimal or significant impact on your credit score.\nFor example, with debt consolidation, applying for a new loan or credit card could have a small negative effect on your credit score. Also, if moving a balance from one credit card to another increases your credit utilization rate—the percentage of the card's credit limit you're using—it could drop your credit score more significantly until you can pay down the balance.\nWith credit counseling, you typically won't see any major negative effects with your credit score, because you're still paying your debts as agreed. However, closing your credit card accounts could affect your credit utilization rate and eventually shorten the length of your credit history.\nBecause your payment history is the most important factor in your FICO® Score, the credit score most often used by lenders, your credit can suffer considerably with debt settlement and bankruptcy. With debt settlement, you're encouraged to stop making payments, so delinquencies and collection accounts can add up quickly, and those negative items will remain on your credit report for seven years.\nA bankruptcy will also cause a significant drop in your credit score and will be part of your credit score calculation for up to 10 years. END
 TITLE: Debt Relief: An Essential Guide CONTENT: How to Choose the Right Debt Relief Option for You\n--------------------------------------------------\nThe right debt relief method for you depends on your financial situation and the level of risk you're willing to take to get rid of your debt.\nIn general, it's best to try to get on a budget and consolidate your debt first. You may even be able to do some negotiating with your creditors on your own to get on a modified repayment plan or qualify for a lower interest rate.\nIf your credit isn't in good enough shape to consolidate your debt, consider working with a credit counselor to get on a debt management plan. The drawbacks of this option—a monthly fee, closed credit card accounts and no new debt—aren't ideal, but they're reasonable.\nIf you're considering more dire measures, including debt settlement and bankruptcy, carefully consider all of the potential risks and whether you can manage with another approach. If you can't, consider the costs associated with each option and the potential impact on your credit scores before you move forward. END
 TITLE: Debt Relief: An Essential Guide CONTENT: Consider Both Short- and Long-Term Effects\n------------------------------------------\nGetting out of debt sooner than later is always appealing, but depending on the potential negative long-term impact, it may not be worth it. As you consider which debt relief approach to use, think about the trade-offs for each one. Also, checking your FICO® Score can help you understand whether debt consolidation, the mildest of the four approaches, is an option.\nIf you're having trouble figuring out the best path forward, consider reaching out to a credit counseling agency to get some basic advice based on your situation. While they can help with a debt management plan, they can also tell you whether one of the other debt relief methods would be a better fit. END
 TITLE: Is There Such a Thing as Good Debt? CONTENT: How Can Debt Be Good?\n---------------------\nNot all debt is good debt, of course. Going into debt for spending that has no lasting value, like an expensive vacation, a fancy dinner out or a 65-inch TV, is a bad idea. But you may need good debt to achieve certain life goals. For example, few of us could buy a house without a mortgage or afford a six-figure college education without student loans.\nThere's risk in every investment, to be sure. Just as the price of stock you buy may tank, your home might depreciate in value. But in general, good debt can reasonably be expected to deliver a positive return on investment. END
 TITLE: Is There Such a Thing as Good Debt? CONTENT: What Are Examples of Good Debt?\n-------------------------------\nGood debts can include:\n*   **Home mortgages**: In the short term, home values may rise and fall, but over the long term, homes have historically proven to be good investments. The median price of a home in the U.S. was $79,100 in 1990 (not adjusted for inflation); nearly 30 years later, the median price has more than doubled to $193,500, according to Census data. For many Americans, their home accounts for the bulk of their net worth—and a mortgage can help you build that nest egg.\n*   **Business loans**: Getting a loan to start or expand a business can be a wise investment. Whether or not your business becomes the next Facebook, growing your business can help you grow your income. With careful planning, you can help to make sure that borrowing for your business is a calculated risk.\n*   **Student loans**: Earning a college degree doesn't guarantee you'll get a job, but there's plenty of research showing that it can boost your earning power over time. Median earnings of bachelor's degree holders with full-time jobs are $24,600 higher than the median earnings of high school graduates with full-time jobs, according to 2017 research by the College Board.\nAre car loans good debt or bad debt? The answer lies somewhere in the middle. Cars depreciate in value the minute you drive them off the dealer's lot, so they shouldn't be viewed as a long-term investment. But if you don't have cash on hand to pay for a new car outright, an auto loan offers a way to get the transportation you need.\nCar loans also share a common characteristic of good debt: low interest rates. Current interest rates on new car loans for those in the top credit score ranges are at or below 5%, according to Experian data. Interest rates for fixed-rate 30-year mortgages average 4.4%, according to Experian data from the first quarter of 2019. In contrast, the Federal Reserve says the average annual percentage rate (APR) for credit cards has hovered between 14% and 15% since early 2018. END
 TITLE: Is There Such a Thing as Good Debt? CONTENT: Is It Better to Have No Debt?\n-----------------------------\nYour grandparents may have hidden their money under the mattress and scoffed at the idea of owing anyone money. But in the 21st century, trying to live completely debt-free is difficult. What's more, it can actually cause financial problems down the road.\nUnless you take on good debt, you may not be able to buy a home or get a college education—all investments that can enhance your income or net worth.\nManaging debt responsibly also helps you build a good credit history. Since your credit scores can be a factor in everything from renting an apartment to getting a job, a good credit score can open lots of doors.\nIt's better to have no debt than to have bad debt—but having good debt and managing it wisely can be a smart financial move. END
 TITLE: Is There Such a Thing as Good Debt? CONTENT: Good or Bad: It's up to You\n---------------------------\nEven good debt can go bad if you take on more than you can afford. If your mortgage eats up half your salary, or you've taken out $200,000 in student loans to get a degree in 19th century Romanian poetry, that's not so good. To make good debt work for you, be sure to match your debt to your goals, keep your debt-to-income ratio under control, and never take on more debt than you can afford. END
 TITLE: What Is Debt Consolidation? CONTENT: What Does It Mean to Consolidate Debt?\n--------------------------------------\nSay you have several forms of debt: credit card debt, and maybe an unsecured loan or medical bill. You're struggling to keep track of them, and the interest rates are sky-high. Debt consolidation allows you to merge them, or consolidate them, into a single loan or credit card, ideally at a lower interest rate. This means you'll owe one creditor instead of several, and your monthly payment might be lower due to the lower interest rate.\nThere are a few debt consolidation methods, but these are the two most common:\n*   **Balance transfer credit card**: With this method, you obtain a credit card with an introductory 0% annual percentage rate (APR) for a set period that's typically anywhere from 12 to 20 months. You then transfer your high-interest debts to this new credit card, where you temporarily will not owe any interest. The goal with a balance transfer card is to pay off all or as much of your balance as possible during this time before the higher ongoing interest rate kicks in.\n*   **Debt consolidation loan**: If you have good credit, you may be able to get a debt consolidation loan with a lower interest rate than your existing debts. You'll pay off your other debts with this loan, simplifying payments and ideally paying less over the life of the loan. When you qualify for a loan with a lower interest rate than your previous debts, more of your payment goes to the principal debt, allowing you to potentially pay down your debt much faster. END
 TITLE: What Is Debt Consolidation? CONTENT: Is Debt Consolidation Different from Debt Settlement?\n-----------------------------------------------------\nAnother way to tackle debt overload is debt settlement, but this is not the same as debt consolidation and can seriously damage your credit. With debt settlement, you negotiate to pay a lower amount of debt with your creditors than you originally owed. You can either try doing it yourself, or you can hire a debt settlement company to do it for a fee.\nDebt settlement doesn't lower your interest rates, as a debt consolidation loan or balance transfer credit card does—just the balance. And settling your debt can have major negative consequences on your credit scores, since you're not paying the debt as agreed. In addition, debt settlement companies typically have you stop making payments on your debts, which can cause your credit scores to plummet even further.\nDebt consolidation, on the other hand, shouldn't negatively impact your credit if you make all of your payments on time—in fact, if it helps you avoid late payments and you pay the loan as agreed, debt consolidation could even help your credit. END
 TITLE: What Is Debt Consolidation? CONTENT: What Are the Benefits of Debt Consolidation?\n--------------------------------------------\nDebt consolidation has several potential benefits:\n*   **Better interest rates**: If you have a credit card or loan with a steep interest rate—say 20%—a big chunk of your monthly payment is going toward interest rather than paying off your balance. Finding a debt consolidation loan or credit card with a lower interest rate can significantly lessen how much interest you pay over the life of the loan. In the case of a balance transfer credit card with an introductory offer, you can even pay 0% for a set amount of time. This can save you hundreds, or even thousands, of dollars in the long run.\n*   **Shorter term lengths**: When you consolidate your debt, you can also choose a shorter term length than what you originally had, allowing you to pay off your debt even faster.\n*   **Easier to manage**: If you have multiple debts all due at different times, you may have a hard time keeping track of payments, increasing the likelihood of making late payments. When you consolidate your debts into one account with one due date, it's much easier to manage and make on-time payments. Payment history is the most important component of your credit score, so if you have a track record of missing payments or making late payments, consolidating your debts and paying your bill on time can help give your credit a boost. END
 TITLE: What Is Debt Consolidation? CONTENT: What Are the Disadvantages of Debt Consolidation?\n-------------------------------------------------\nWhile debt consolidation can be hugely beneficial for some people, it's not for everyone. First, keep in mind that there's no guarantee you'll be able to qualify for a balance transfer credit card or debt consolidation loan with a lower interest rate than that of your existing debt. If you have good credit, it will be easier to qualify. But if your credit needs improvement, it's possible you won't be able to get the lower rate needed to consolidate your debts and save money.\nAlso, be aware that if you extend the term of your original loan, it can actually become a more expensive proposition. Even if your interest rate is lower, it can still cost you more over time if you take longer to pay off the debt.\nSome debt consolidation methods, such as an unsecured loan, require no collateral. Other options, such as consolidating your debt with a home equity line of credit (HELOC), can put your assets at risk. Before you go down that road, make sure you can stay on top of the payments so you don't find yourself at risk of losing your home. END
 TITLE: What Is Debt Consolidation? CONTENT: What Credit Score Do You Need for Debt Consolidation?\n-----------------------------------------------------\nThere isn't a magic number you need to consolidate your debt, but your credit does play a big role. You can potentially qualify for debt consolidation loan if you have a fair credit score (above 580), but be aware that the interest rate might be even higher than the one on your original loan. In this case, it might not save you money at all, and could even cost you more.\nWhile you might be able to get a debt consolidation loan with bad credit, keep in mind that the higher your credit score, the better your interest rate will be. If your credit score needs some work, you might consider taking efforts to improve it before you apply for a debt consolidation loan. END
 TITLE: What Is Debt Consolidation? CONTENT: Weigh Your Options\n------------------\nIf you're struggling with multiple forms of high-interest debts, debt consolidation can help you make them more manageable and potentially lower your interest rate and monthly payments. Whether this method works for you will be contingent upon the state of your credit and whether you can qualify for debt consolidation with a lower interest rate than you're currently paying.\nIf your credit needs work, work on improving it before you apply for a debt consolidation loan or balance transfer credit card. Also consider trying Experian Boost™† , which could help give your score a lift by giving you credit for your on-time utility and telecom payments. END
 TITLE: Knowing What Debts to Avoid When Managing Your Finances CONTENT: What Is Considered Bad Debt?\n----------------------------\nDistinguishing bad debt from good debt isn't always so black and white. In general, bad debt is any type of debt that doesn't increase your net worth. But even good debt can go bad if you can't pay it off or if the payments start eating up too much of your income. (Find out how much your debt-to-income ratio should be.)\nYour financial habits also affect whether debt is good, bad or neither. If you can put all your household spending on a credit card, earn lots of rewards for that spending and pay the balance off in full every month, that debt will have a positive effect on your credit and overall finances. If you spend beyond your means, pay just the minimum each month and rack up interest costs, your debt is doing more harm than good.\nThat said, some types of debt are bad news from the get-go. This debt may carry very high interest rates or have unrealistic payment schedules. These include:\n*   **Payday loans**: When you're in a cash crunch, these emergency loans can offer a way to tide you over until payday. But they have extremely high interest rates and fees, and you typically have to pay back the loan in full on your next payday. If you can't do that, interest on the loan keeps accruing. A payday loan quickly can lead to a vicious circle where you owe your paycheck to the payday lender before you even get paid.\n*   **Car title loans**: Title lenders use your paid-off car as collateral. You'll get cash fast, but you'll have to sign over your car title to the lender and you won't get it back until the loan is paid in full. Because title loans charge high fees and interest rates, you can easily find yourself getting deeper and deeper in debt and never be able to get your car back. Find out more about title loans. END
 TITLE: Knowing What Debts to Avoid When Managing Your Finances CONTENT: How Bad Debt Affects Your Credit\n--------------------------------\nAside from wreaking havoc with your budget, bad debt can hurt your credit score in a couple of ways. First, it may increase your credit utilization rate, which is how much of your available revolving credit you're using relative to your total credit limits. You should keep your credit utilization rate under 30%, or in single digits for the best scores. If you have a lot of bad debt, you're probably using more than 30% of your available credit, which can hurt your credit score.\nBad debt also can affect your credit score if the debt becomes seriously past due. If your grace period is over and you still haven't made a payment, the debt is considered delinquent and the creditor might send it to collections. They'll either turn it over to an internal collections department or sell it to a collections agency to try to collect payment from you. Since paying your bills even a few days late can hurt your credit score, you can imagine how much damage having a debt go to collections can do. Debt in collections leaves a lasting impact: It can stay on your credit report for as much as seven years from the date the debt first became delinquent. END
 TITLE: Knowing What Debts to Avoid When Managing Your Finances CONTENT: How to Deal With Bad Debt\n-------------------------\nNow that you know all the problems bad debt can cause, what can you do if you've already got bad debt? Depending on your situation, one of these two approaches may work for you.\n*   **Consolidate your debt.** If you have high interest debt or have so many different debt payments that it's hard to keep track of them all, debt consolidation might be for you. Combining different debt accounts into one monthly payment at a lower interest rate can make it easier to repay your debts.  \n    There are several ways to consolidate debt. You can use a balance transfer credit card that offers a 0% introductory annual percentage rate (APR), get a personal loan or debt consolidation loan, borrow from your home's value using a home equity line of credit or pull money from your retirement account. Each of these options has risks, so be sure you understand what you're getting into.\n*   **Make a budget.** Poor money management often leads to bad debt, and taking charge of your finances can help you get out of it. To start eliminating bad debt, set a budget that takes into account your income and expenses. You have options when it comes to setting a budget. One common approach, the 50\/30\/20 method, is to put 50% of your income toward essentials (rent, groceries and car payments), 30% toward discretionary spending (eating out or new clothes) and 20% toward financial goals such as saving and paying down debt.  \n    Tracking your spending will help you set a budget and also reveal where your money really goes. If you're surprised to see how much you're spending on eating out or retail therapy, don't beat yourself up—just redirect that money toward reducing your debt. Setting and following a realistic budget will help you make steady progress toward your goals without getting discouraged. END
 TITLE: Knowing What Debts to Avoid When Managing Your Finances CONTENT: Know the Score\n--------------\nWhether you're trying to reduce your bad debt or avoid bad debt in the first place, knowing your credit score is always a smart move. Check your credit score at least once a year to keep tabs on how you're handling debt (you can get a free FICO® Score☉ from Experian). Reading your credit report will show you whether the way you use debt is helping—or hurting—your credit score. END
 TITLE: What Happens with Canceled Debt? CONTENT: What Is Cancellation of Debt?\n-----------------------------\nDebt cancellation happens when a lender forgives or discharges some or all of a debt that you owe. The process typically doesn't affect your credit score—unless it happens in bankruptcy—but it could end up costing you. Debt cancellation typically happens in accordance with a debt forgiveness program.\nFor example, the U.S. Department of Education offers income-driven repayment plans to federal student loan borrowers. If you get on one of these plans, your repayment term will last 20 or 25 years, after which any remaining debt is forgiven.\nWith debt cancellation, you're no longer on the hook for the canceled amount, and you don't have to worry about the lender coming after you in the future. END
 TITLE: What Happens with Canceled Debt? CONTENT: How Does Canceled Debt Affect Taxes?\n------------------------------------\nThe IRS considers most forms of forgiven, canceled or settled debt as income for tax purposes. If the amount of your canceled debt is more than $600 and it's considered taxable, the lender is required to send you a 1099-C form, which includes the cancelled amount that you'll need to report.\nIf your forgiven debt is less than $600, you might not get a 1099-C, but you'll still need to report it on your tax return.\nDepending on how much debt has been discharged and your current tax situation, a canceled debt could result in a massive tax bill. So if you've recently taken advantage of a debt forgiveness program, you'll want to find out whether it's taxable and how to prepare, so you don't get blindsided at tax time. END
 TITLE: What Happens with Canceled Debt? CONTENT: Is All Canceled or Forgiven Debt Taxable?\n-----------------------------------------\nWhile most canceled debts are considered taxable, there are a few exceptions to the rule. If your situation falls under one of these categories, you might still need to report the debt, but it won't be counted toward your gross income.\n*   **Bankruptcy**: If your debt was discharged in bankruptcy, it's not considered taxable income. The idea is that you're already hurting financially, and requiring you to pay taxes could make things even more difficult.\n*   **Insolvency**: If you're financially broke at the time of the cancellation—your liabilities exceed your assets—you may be able to exclude some or all of your canceled debt from your income on your tax return. The IRS determines how much you can exclude based on the extent of your financial insolvency.\n*   **Gifts**: If you borrowed money from your parents or a friend and they decided not to collect the full amount from you, that's considered a gift for tax purposes.\n*   **Tax-Deductible Interest**: If you've had a business or mortgage loan canceled, where the interest was considered tax-deductible, you won't need to report the interest portion of the forgiven amount as income. You will, however, still need to report the canceled principal amount.\n*   **Certain Student Loans**: If you've had your student loans forgiven in return for service in a specific field or career for a set period of time, the amount forgiven is not considered taxable income. The same goes if your student loans have been discharged due to death or permanent disability.\n*   **Farm or Real Estate Debt**: If your debt was attached to a farm or real estate business and you meet other eligibility requirements from the IRS, you may qualify for a special exclusion. END
 TITLE: What Happens with Canceled Debt? CONTENT: The Difference Between Canceled Debt and Debt Settlement\n--------------------------------------------------------\nHaving a debt canceled or forgiven is a little different than settling a debt for less than what you owe. While debt forgiveness typically happens as part of a specific program, debt settlement often occurs when you're struggling to pay what you owe and are behind on payments.\nAlso, debt settlement is typically only available for unsecured debts, including credit cards and personal loans. In a debt settlement situation, your credit might already be in bad shape, and settling can damage your credit even more.\nOn the flip side, debt cancellation typically doesn't have a negative impact on your credit score. In either case, though, you may need to report the debt as income on your tax return. END
 TITLE: What Happens with Canceled Debt? CONTENT: If It's Taxable, Be Prepared\n----------------------------\nIf you've taken advantage of a debt forgiveness program, the sooner you find out about the tax implications, the better. Speak with a tax professional to find out whether you qualify for an exception. If you do, you don't need to do anything else.\nIf you don't, however, you may need to start preparing for the tax bill. A tax professional can help you run the numbers based on how much you currently have withheld from your paychecks and which deductions and credits you qualify for. END
 TITLE: What is Debt Forgiveness? CONTENT: What's the Difference Between Debt Forgiveness and Debt Settlement?\n-------------------------------------------------------------------\nDebt settlement is a process where you negotiate with a creditor to pay a lower amount of debt than you originally owed. This option is typically used on unsecured debt, like credit card debt, and only when you are severely behind on your payments. Since these negotiations really only arise when you are already struggling with debt, in most cases debt settlement will have a negative impact on your credit scores.\nDebt forgiveness—when a creditor wipes away all or some of your debt—is different from debt settlement, and is typically a result of you applying for or qualifying for a special program. As a result, if some or all of your debt is forgiven, your credit scores will most likely stay intact, typically making it a better option for someone looking to get rid of their debt. END
 TITLE: What is Debt Forgiveness? CONTENT: Different Types of Debt Forgiveness\n-----------------------------------\nBeyond declaring bankruptcy, there are only a few ways to get lenders to forgive your outstanding debt. While not available for all types of debt, here are some of the programs and details on how to navigate them.\n*   **Student loan forgiveness**. These programs are really the last true way to get a creditor to forgive your outstanding debt with no consequence. These programs only apply to federal student loan debt, and are crafted in ways that make it very difficult for people to qualify. They also usually involve you making your loan payments for a certain repayment period before the debt is forgiven.The Public Service Loan Forgiveness program, available through the U.S. Department of Education, is one of the better-known options for student loan forgiveness. It works by forgiving the loans of eligible borrowers employed in certain industries for specific periods of time. Qualifying for this program can be extremely difficult and may require you to stay in a certain job for an extended time. If you can weather the initial 10-year repayment period and other requirements of this program, at the end, your remaining federal student loans could be forgiven.\n    Another type of student loan forgiveness is income-driven repayment, an option that can clear federal student loans after 25 years of repayment. While this method forgives your remaining federal debt at the end of the repayment period, you will be taxed on the amount forgiven.\n    It's important to note that these programs are specifically for federal student loan debt and do not apply to any debt you may have with private lenders. To find out more about your student loan forgiveness options, check out the guide provided by the U.S. Department of Education or contact your loan servicer.\n*   **Mortgage debt forgiveness.** While mortgage debt forgiveness does not exist as it did a decade ago—when the housing crisis resulted in lenders clearing loads of debt—there are still some ways to adjust or reduce your mortgage burden. Much of this will depend on your financial situation, and options vary from lender to lender. Because mortgage loans are secured—meaning lenders have collateral (your house)—outright debt forgiveness almost never happens anymore.A mortgage modification can happen, however, if your lender agrees to adjust your original loan to accommodate your current financial situation. This won't wipe your debt outright, but it could be a good strategy to lower your monthly payment and in some cases shave some principal off your total balance. Modification is offered by many conventional lenders, and is also available for FHA-issued mortgages. For assistance in determining whether you are eligible, you can call the FHA or consult the Homeownership Preservation Foundation.\n*   **Credit card debt settlement.** If you find yourself severely behind on your credit card bills, negotiating a debt settlement may be a way to clear your outstanding debt—but not without consequence. Debt settlement is not debt forgiveness—rather, it's a process where you negotiate an agreement with your creditor to pay back less than what you owe using a third-party debt settlement company. This option might sound good, but it can hurt your credit score and can cost you in time and fees.Some debt settlement companies have you stop making payments while they negotiate, which can cause you to rack up missed payments and late fees. Once the debt settlement company reaches an agreement with your creditor—and it's possible they never will—your credit score will probably be in bad shape and in most cases you will owe the settlement company a fee for their service. This is a last resort option, reserved for people who can see no other way to get out from under their debt. Debt settlement, while it could clear some or all of your debt, is not the same as debt forgiveness and should be treated very differently. If you're considering using a debt settlement company, be extremely diligent about finding a reputable firm. Before turning to debt settlement, consider creating a repayment plan or consulting a credit counseling service to help you tackle your debt without hurting your credit.\nOther Debt Relief Options\n-------------------------\nWith debt settlement a last resort and debt forgiveness programs harder to find, there are a few other options to consider when trying to get on top of your debt. If you're thinking about trying to use either of these methods, it's important that you continue to make payments on time so that your credit scores remain intact. Payment history is the most important aspect of your credit score, and even one late or missed payment can negatively impact your score.\n*   **Debt management plan.** If you are having trouble managing your existing debt, consider consulting a credit counselor to create a debt management plan (DMP). With a DMP, a credit counselor will help you outline and stick to a plan to tackle your debt. Depending your plan, a DMP can help you consolidate payments, possibly reduce interest rates, and help you get an idea of when you'll be debt-free. As long as you make all your payments on time, this method could be a good way to tackle debt.\n*   **Debt consolidation**. This is another popular method of tackling debt and involves wrapping all of your debt into one low interest loan. Consolidation can save you money on interest over time and can help you streamline your finances by letting you pay fewer bills each month.\nIf you're considering either of these options, it may be good to get a free copy of your credit reports and scores so you have an idea of what your credit looks like. Understanding your credit picture will help you avoid damage to your credit as you try to get rid of your debt. You can get a free copy of your report and score from Experian.\n* * *\n**Want to instantly increase your credit score?** Experian Boost™ helps by giving you credit for the utility and mobile phone bills you're already paying. Until now, those payments did not positively impact your score.\nThis service is completely free and can boost your credit scores fast by using your own positive payment history. It can also help those with poor or limited credit situations. Other services such as credit repair may cost you up to thousands and only help remove inaccuracies from your credit report. END
 TITLE: What is Debt Forgiveness? CONTENT: Other Debt Relief Options\n-------------------------\nWith debt settlement a last resort and debt forgiveness programs harder to find, there are a few other options to consider when trying to get on top of your debt. If you're thinking about trying to use either of these methods, it's important that you continue to make payments on time so that your credit scores remain intact. Payment history is the most important aspect of your credit score, and even one late or missed payment can negatively impact your score.\n*   **Debt management plan.** If you are having trouble managing your existing debt, consider consulting a credit counselor to create a debt management plan (DMP). With a DMP, a credit counselor will help you outline and stick to a plan to tackle your debt. Depending your plan, a DMP can help you consolidate payments, possibly reduce interest rates, and help you get an idea of when you'll be debt-free. As long as you make all your payments on time, this method could be a good way to tackle debt.\n*   **Debt consolidation**. This is another popular method of tackling debt and involves wrapping all of your debt into one low interest loan. Consolidation can save you money on interest over time and can help you streamline your finances by letting you pay fewer bills each month.\nIf you're considering either of these options, it may be good to get a free copy of your credit reports and scores so you have an idea of what your credit looks like. Understanding your credit picture will help you avoid damage to your credit as you try to get rid of your debt. You can get a free copy of your report and score from Experian. END
 TITLE: How to Deal With Debt Collectors CONTENT: Check Your Credit Report\n------------------------\nIf a creditor has recently charged off one of your debts, it's entirely possible that the collection agency hasn't reported it to the credit reporting agencies yet. Check your credit reports now. If it's not there, you may be able to satisfy the debt before it ever shows up on your reports.\nContact the collector and arrange for swift payment. This will really be advantageous if the debt was for something not normally recorded on credit reports, such as doctor or hospital bills. If it was for a credit card or loan, however, the late payments that preceded it going into collections will be listed on your reports until they age away, which takes seven years. END
 TITLE: How to Deal With Debt Collectors CONTENT: Know the Statute of Limitations\n-------------------------------\nWorried about being sued for an old debt? Time may be on your side. Collectors have a fixed number of years to take legal action against you. The statute of limitations varies by state and type of debt, so find out what that period is for you by checking with your state attorney general's office. If the clock has run out, you're protected against a lawsuit. Mind that the statute of limitations has nothing to do with how long the debt can appear on your credit report. A collector may be prohibited from suing you after a few years, but the account can still show up on your report until it hits that seven-year mark. END
 TITLE: How to Deal With Debt Collectors CONTENT: Make Sure the Debt Is Valid\n---------------------------\nWithin five days of contacting you about a debt, the collector should have sent you a written validation notice spelling out how much money you owe, the name of the creditor, and how to proceed if you think the debt is wrong. If you've already paid or believe the debt is in error, ask the collector to provide evidence that you owe the money by sending a \"debt validation letter.\" Specify that you want proof that the debt is valid and within the statute of limitations for your state. If you send it within 30 days of receiving the validation notice, the collector must send you written verification before restarting collection action. Without that, it shouldn't be on your credit report any longer, so if it is, dispute it with the credit reporting agency. END
 TITLE: How to Deal With Debt Collectors CONTENT: Communicate Effectively\n-----------------------\nThe phone won't stop ringing, and the collector is leaving firm messages. Now what? Decide how you want to handle the bill, then pick up the phone and speak carefully, says Leslie Tayne, financial attorney and debt expert in Melville, New York. \"Stay in control,\" says Tayne. \"If your goal is to resolve the debt, know what you're going to do about it before you start talking.\"\nIf you have the money ready to go, explain when you'll pay, then follow through. It will be to your scoring benefit, since satisfied collection accounts aren't included in the latest versions of the ® Score and VantageScore®. Only promise what you can deliver, though. \"If you tell the collector you'll pay, you may be agreeing to a verbal contract without realizing it,\" says Tayne. \"That will start the statute of limitations all over again.\"\nAvoid being pressured into sending what you can't afford, especially if the debt is nearing the end of the statute. \"If it's that old, you may want to let it die on the vine,\" says Tayne. END
 TITLE: How to Deal With Debt Collectors CONTENT: Consider Negotiating Your Debt\n------------------------------\nIf you would like to pay the debt but don't have all the money to cover the entire obligation, you may try for a debt settlement. This is when you negotiate with the debt collector for a reduced sum. You can start the process by talking with the debt collector over the phone, but you must follow up with a letter. \"Make sure everything goes in writing before sending the money,\" says Tayne. \"If the collector asks for the payment first and you have no written agreement from them where they agree to the settlement, the collector may go after the remainder.\"\n### Will Settling Your Past Due Accounts Help Your Credit?\nWhile settling your account instead of paying the full amount you owe is not looked upon favorably by creditors, it's better than not paying at all. The credit scoring model used will determine how the settlement is considered and how it impacts your credit. END
 TITLE: How to Deal With Debt Collectors CONTENT: Understand Your Rights\n----------------------\nA powerful federal law to become familiar with when communicating with debt collectors is the Fair Debt Collection Practices Act (FDCPA). It regulates the way collectors can behave when contacting you, so it's a good idea to remind them that you know what can be said and done. Abusive, unfair and deceptive practices are illegal. Among the many restrictions, debt collectors can't:\n*   Threaten you with harm, use obscene language or lie (for example, tell you they will sue you when they don't have any intention to do so)\n*   Call repeatedly\n*   Try to add on fees or interest to the debt unless it's stipulated in the original contract or permitted by state law\n*   Deposit a postdated check early\n*   Take or threaten to take your property (unless it can be done legally)\nIf a debt collector is not following the rules, submit a complaint with the Consumer Financial Protection Bureau or your state's attorney general. END
 TITLE: How to Deal With Debt Collectors CONTENT: Send a Cease and Desist Letter\n------------------------------\nThere may be a time when you just want to stop hearing from the debt collector altogether. If so, a cease and desist letter may be in order. As per the FDCPA, it's your right to send one. There are two basic circumstances where you might want to do this:\n*   **The statute of limitations has run.** The collector can still contact you, but since you're safe from a lawsuit, you can stop the calls and letters once and for all with the cease and desist letter.\n*   **You have no current or future assets to pay even if you are sued and you lose the case.** You'd be considered \"judgment proof,\" which means a lawsuit would be fruitless because the collector wouldn't get anything if they won.\nIf a cease and desist letter makes sense for you, write it, make a copy and send the letter by certified mail, return receipt requested. Upon receipt, the collector can either notify you that they received the letter and will cease communications or inform you that they will file a lawsuit (which is why you have to be sure that the debt has either passed the statute of limitations or that losing a lawsuit will have no impact on you).\nSomething to keep in mind when dealing with collection agencies is that they don't want you—they're after the money. It's not personal. If you pay them, either in full or as a settlement, they'll leave you alone. And if you can't or won't, but manage the situation the right way, you'll still come out ahead. END
 TITLE: Should I Save or Pay Off Debt? CONTENT: When to Pay Off Debt Before Saving Money\n----------------------------------------\nIf you have high interest debt from credit cards, personal loans or payday loans, prioritize paying that off first. Send more than the minimum to your creditors each month to get rid of the debt, even if that means earning extra income or cutting back on expenses. You can aim to spend less on meals out, for instance, or cancel subscription services you don't use.\nMaking payments on time, every time is the largest contributor to a good credit score. Paying off a debt early won't necessarily positively impact your score on its own. But along with saving on interest, you'll lower your credit utilization, or the amount of debt you have relative to your credit limit. Experts recommend using no more than 30% of your available credit at any point; keeping your utilization rate at or below 10% is ideal.\nTo reduce credit card debt, consider these options:\n*   A balance transfer credit card with an interest-free promotional period. If you're eligible, you'll have up to a year or more to pay down your debt without racking up additional interest charges. Make sure you get rid of the debt in that time to avoid paying interest once the promotion term ends.\n*   A debt consolidation loan. You may be able to bundle multiple types of debt, not just credit cards, with a consolidation loan at a lower interest rate than you currently have. If you have just a single credit card balance to pay off, though, a balance transfer credit card is likely a better option.\n> Find balance transfer credit cards in Experian CreditMatch™. END
 TITLE: Should I Save or Pay Off Debt? CONTENT: When to Save Money Before Paying Off Debt\n-----------------------------------------\nAn emergency fund will protect you from taking on further debt, depending on what emergency expenses you may incur. Regardless of the type of debt you have, ideally you'll also set aside a little bit each month to eventually have three to six months of basic expenses saved, which is what experts recommend. That will give you the security to cover rent, groceries, utility bills and minimum debt payments if you unexpectedly lose your job.\nIf you can't save each month, consider contributing part of your tax refund or bonus at work to your emergency fund. Sure, you can still use part of it for fun stuff like new hiking boots. Depriving yourself could make you so miserable you end up falling off track. But putting a portion aside in savings will give you a sense of accomplishment—and, more important, protect you when unexpected future expenses pop up.\nIn some cases, you can skip right to saving, instead of sending extra to your debt each month. If you have low interest debt, such as federal student loans or a mortgage, you can likely safely pay the minimum and focus on saving with any extra cash you've got. (However, adding extra principal payments to your mortgage each month can reduce the life of the loan, and thus the interest you'll pay.) Once your emergency fund is in good shape, boost your retirement savings or work toward building a down payment for a house or car. END
 TITLE: Should I Save or Pay Off Debt? CONTENT: How to Pay Off Debt\n-------------------\nTo get out of debt, focus on eliminating your costliest debts first. That likely sounds easier said than done. Here's how to see where you stand, then attack your debt strategically:\n1.  Take a deep breath and honestly assess what you owe. If you're not sure, check your credit report, which will show your outstanding balances. Make a list of your various types of debt, their amounts and their interest rates, which you can find on your account statements.\n2.  Prioritize paying off the highest-interest debt first. Credit cards, personal loans and payday loans should be at the top of the list. Private student loans with high interest may also be a priority for you.\n3.  Consider using a balance transfer credit card or debt consolidation loan to reduce your interest rates and combine multiple debts into one, making them easier to pay off. You can also look into refinancing private student loans to a lower interest rate. (If you refinance federal student loans, you'll lose access to protections like income-driven repayment and long periods of payment postponement.)\n4.  You may also be able to reduce the monthly payment on some debt if you need a strategy that will make them more affordable in the long term. Federal student loans come with income-driven repayment plans, for instance, that tie your payments to income. Payments can be $0 if you have no earnings.\n5.  To free up more money for debt payments, consider adding to your income. You could sell unused clothes, rent out a spare room on Airbnb, or ask for a raise and send any additional earnings toward the debt.\nIf you're feeling overwhelmed or need help making a plan to get debt-free, a nonprofit credit counselor can take a look at your situation and offer solutions. You can get a free consultation through credit counseling agencies certified through the National Foundation for Credit Counseling. See \"How to Get Out of Debt\" for more payoff advice. END
 TITLE: Should I Save or Pay Off Debt? CONTENT: How to Save Money\n-----------------\nThere are two major categories of expenses you can reduce to save money: fixed and variable. Fixed expenses are recurring bills that don't change, like your rent or mortgage, while variable expenses, like entertainment and meals out, can vary from month to month. Here's how to address both:\n1.  You won't know where to cut back if you're unsure where your money is going in the first place. Make a budget so you can assess what you're currently spending and where there's room to trim.\n2.  Target your biggest monthly expenses first, like rent and transportation. Moving into a less expensive place, getting a roommate or refinancing your mortgage can all yield big savings. Buying a used car instead of a new one or shopping for cheaper car insurance could also help bring down monthly bills.\n3.  If you've already cut back on major expenses, or you're unable to make a change to your housing or transportation at the moment, next set your sights on smaller monthly bills, like utilities. Negotiate down your cable or internet bill, for instance, or shop for a new cell phone plan.\n4.  Next look at variable expenses. If food takes up a big portion of your budget, try cutting out takeout for a month to see how much you save, or go out to eat just once a week instead of three times. Spend Sunday afternoon cooking for the week so you can bring leftovers to work. Cancel any subscriptions you don't use, like gym memberships or streaming video or music services.\nSee \"How to Save Money Every Month\" for more tips on how to save money. END
 TITLE: Should I Save or Pay Off Debt? CONTENT: The Bottom Line\n---------------\nSaving and paying off debt are perhaps the most worthwhile financial goals to pursue, but they can feel at odds. To avoid losing sleep over competing priorities, make a plan to tackle one at a time, starting with your emergency fund. The more you accomplish—even taking five minutes to set up a monthly automatic transfer from checking to savings—the more you'll know you can do. END
 TITLE: 10 Tips for Finding Your Best Personal Loan CONTENT: Know Where Your Credit Stands\n-----------------------------\nA personal loan can provide the funds you need for a wide range of uses, from consolidating your credit card debt or paying for a wedding to covering unexpected expenses. Payments are fixed over a set payoff period, and interest rates are often lower than they would be on credit card debt. If you're looking to lower your costs, simplify bill-paying or commit to paying off credit cards, a personal loan is worth investigating.\nIf you do a quick scan of the marketplace, you'll find a wide range of lenders, most of which specialize in a particular type of borrower. Before you begin shopping, get a handle on your credit status by downloading your free credit report and obtaining your credit score. Review your report for any inaccuracies and take a quick look at where you fit within credit score ranges. Knowing where your credit stands will help you find a lender who will be willing to lend to you and help you better understand what you can expect in the way of rates and terms.\nNow that you're ready to shop, here are 10 things to consider as you navigate this process:\n1\\. Gather Knowledge on Loans and Lenders\n-----------------------------------------\nYou can start shopping individual online lenders by searching the internet. To streamline your search, you can also use a tool like Experian's CreditMatch™, which matches your information with a variety of lenders. You'll see your best options at a glance and can sort your results by estimated APR, repayment terms, monthly payments and more. Borrowers with great credit, for example, may find attractive offers from SoFi, such as a loan with no origination or prepayment fees and a potentially low APR.\n2\\. Be Aware of Restrictions\n----------------------------\nYou can probably find a personal loan for almost any legal purpose, but individual loans may carry restrictions on how they're to be used. Before applying, make sure you can use your money for the purpose you have in mind. Loans from Payoff, for example, are specifically designed to help borrowers consolidate credit card debt with low interest rates and low to no origination fees. If you want to use the money to fix up your car, you'll need to look for a different lender.\n3\\. Consider Your Bank or Credit Union\n--------------------------------------\nAlthough online companies have driven growth in personal lending in recent years, most banks and credit unions also offer personal loans. Rates and fees at banks may be less competitive—especially if you don't already have a relationship with a bank. If you do, though, and your credit is excellent, it may be worth checking out what your bank has to offer.\nNonprofit credit unions often promote personal loan programs with rates and fees that are likely to beat what a typical bank offers. You can find a credit union in your area by visiting the National Credit Union Association.\n4\\. Check Out Intro 0% Balance Transfer Options\n-----------------------------------------------\nIf your credit is good, you may already be inundated with offers for 0% balance transfer credit cards. Depending on your circumstances, these can be a viable alternative to taking out a personal loan—as long as you can pay off your balance before the intro period ends and you're charged the standard interest rate. Run the numbers (taking balance transfer fees into account) to make certain you'll come out ahead. This leads to the next important tip...\n5\\. Use a Personal Loan Calculator\n----------------------------------\nComparing rates, terms, fees and loan sizes by \"eyeballing\" them will quickly get out of hand. Worse, for most of us it's just not possible to accurately puzzle out how these various factors will affect your monthly payments and overall costs. A loan calculator is a fast and painless way to run the numbers. Using one will enable you to compare many options and still make a fast decision.\n6\\. Build a Better Credit Score\n-------------------------------\nImproving your credit score—even incrementally—can help you get a better rate and terms, regardless of where your score falls on the scale. But if your credit score is in the fair range or lower (below 670), it may be particularly valuable to optimize your score if possible. Depending on how much time you have to work on raising your credit score, here are a few ways to gain critical points:\n*   Pay off as much existing revolving debt, such as credit card balances, as possible.\n*   Pay bills on time, every time.\n*   Bring any delinquent accounts current.\n*   Try Experian Boost™† to see if adding your utility and phone bills to your credit report helps your Experian credit score.\n7\\. Consider Peer-to-Peer Lending Platforms\n-------------------------------------------\nAmong the many online lending platforms that cater to people with mid-range credit are companies like LendingClub that match borrowers with individual investors. Although you'll generally need to meet criteria that's similar to what you'd find with a traditional lender, some P2P lending platforms incorporate additional criteria. Upstart, for example, uses alternative data in lending decisions. According to Consumer Financial Protection Bureau data, Upstart's unique underwriting approach resulted in loan approvals for 27% more people than traditional models did.\n8\\. Find a Lender That Works With Borrowers Building or Rebuilding Their Credit\n-------------------------------------------------------------------------------\nEven if your credit score is truly in need of help, you may still be able to find good options with legitimate lenders. Borrowers at the lower end of the credit score ranges generally pay higher rates and fees and may want to consider adding cosigners to their loans or putting up collateral to bring down rates.\nAvant, for example, lets borrowers with fair credit use the equity in a vehicle as collateral, which lowers their interest rate and upfront fee. Rise, a lender specializing in poor credit, charges high interest rates (up to 299%), but may reduce your rate if you pay monthly installments on time. And more than half of the money OneMain Financial loaned in 2019 went to borrowers with a FICO® Score☉ of 619 or lower. They offer unsecured and collateralized loans and may be able to fund your loan via debit card or check on the day you close.\n9\\. Stay Away From Predatory Lenders\n------------------------------------\nIt's important to compare rates and terms, run the numbers on your loan options, research reviews on your prospective lenders, and look critically at your situation to make sure that your personal loan makes financial sense—whether your credit is exceptional or poor. But for borrowers on the low end of the credit scale, it's even more important to guard against unfavorable deals and unscrupulous lenders.\nPayday and car title lenders can charge outrageous interest rates and may structure loans in a way that makes it almost impossible to extricate yourself from debt. Finding quality lenders and reading reviews can help you identify an option that will truly work for you.\n10\\. Make Inquiries Widely; Apply Sparingly\n-------------------------------------------\nMost online lenders can prequalify you for a loan without running a hard inquiry on your credit. Using this step, you'll be able to see approximately which loan rates and terms they can offer you (rates aren't set until you officially apply)—and, in turn, investigate many options without impacting your credit score. Until you've narrowed the field, try to resist taking the additional step of starting a loan application. This will result in a hard inquiry, which lowers your credit score by a few points. END
 TITLE: 10 Tips for Finding Your Best Personal Loan CONTENT: Paying Off in the Long Run\n--------------------------\nShopping for a personal loan requires more than a few steps. But finding a loan that lowers your monthly payments, simplifies your financial life or enables you to make a needed purchase—with rates and terms you can live with—can pay off. END
 TITLE: How to Save Money With a 0% APR or Balance Transfer Credit Card CONTENT: There are several ways you can use a 0% intro APR or balance transfer card to save money.\n*   **Balance transfers**: By transferring balances from cards with high interest rates to the new card, you can save on interest charges. Suppose you owe $5,000 on a credit card with a 16.61% APR and are paying $200 a month toward your balance. At that rate, it would take 31 months to pay off the balance, and you'd pay $1,179.21 in interest over that time.  \n    If you could qualify for a 21-month 0% APR balance transfer card, on the other hand, you'd have 21 months to pay off that $5,000 before the interest kicks in. By increasing your monthly payments to about $277, you'd pay off the balance without paying any additional interest. Depending on whether the balance transfer fee was 3% or 5% (typical balance transfer fees), you'd pay either $150 or $250 to make the transfer. Either way, you'd still save hundreds of dollars on interest.\n*   **Balance consolidation**: If you have several credit cards with high balances, keeping track of all the due dates can get confusing. That makes it easy to miss a payment (and potentially hurt your credit score). Consolidate those balances onto the balance transfer card, and you've got just one monthly payment to remember. This is easier to manage, and can also make your expenses more predictable, which helps you budget better.\n*   **No-interest purchases**: Some balance transfer cards also offer 0% APR on purchases for a limited time. This can be helpful if you're faced with an emergency expense, such as a car repair or medical bill, that you don't have the cash to cover.\nThe key to saving money with a balance transfer or 0% intro APR credit card is to create a plan for paying off the balance before the promotional period ends. A simple way to do this is to divide your balance by the number of months in your introductory period and pay that amount toward the card each month.\nYou generally need good to excellent credit to qualify for a balance transfer card. If you're not sure what your credit score is, check your credit score before you start researching balance transfer cards. END
 TITLE: How to Save Money With a 0% APR or Balance Transfer Credit Card CONTENT: Make a Balance Transfer Card Part of a Savings Plan\n---------------------------------------------------\nBalance transfer cards have the potential to help you save money—but they can also cost you more money in the long run if you're not careful. The key is to follow a few simple rules:\n**Rule 1: Update your budget.** Carrying a balance on a credit card is often a sign that you're living above your income. Your first step to cutting costs: Examine your budget for ways you can trim your discretionary spending. Cutting back on non-essential expenses such as subscriptions, entertainment or clothing will help you save money that you can put toward paying down credit card balances and other debt.\n**Rule 2: Avoid new spending.** Unless you're faced with a true emergency, avoid the temptation to use your 0% intro APR credit card for new purchases. (A broken pipe flooding your kitchen is an emergency; a 50% off sale at your favorite retailer isn't.) If you must use the card for an emergency purchase, commit to paying off that purchase before your introductory period ends.\n**Rule 3: Pay down other debt.** You've been paying $200 a month toward your balance transfer credit card, and that balance is finally paid off. Start putting the $200 toward other debt each month or, if you don't have other debt, into savings as an emergency fund. Because you've grown accustomed to paying $200 toward a credit card every month, you won't miss the money.\n**Rule 4: Keep an eye on your credit.** Getting a balance transfer credit card can reduce your overall credit utilization ratio, or amount of available credit you're using, which can help increase your credit score. Paying the bill on time each month can improve your credit score too. Just be sure you're staying on top of any other credit card and debt payments. Using a credit monitoring service can help you keep tabs on your credit—and you'll get a thrill from seeing your credit score rise. END
 TITLE: How to Save Money With a 0% APR or Balance Transfer Credit Card CONTENT: Finding a Balance Transfer Credit Card\n--------------------------------------\nWhen comparing balance transfer credit cards, the length of the introductory 0% APR period isn't the only factor to consider. It's also important to compare the APR you'll be charged once the promotional offer is over, the balance transfer fee and the value you'd get out of any other fees or perks.\nMake sure you compare similar features when you're looking for the right balance transfer card for you. END
 TITLE: How to Save Money With a 0% APR or Balance Transfer Credit Card CONTENT: Should You Get a Balance Transfer Card?\n---------------------------------------\nIf you're trying to save money and you have lots of high interest credit card debt, you may want to consider a balance transfer credit card. Because they temporarily keep interest from accruing, balance transfer cards can make it easier to pay down your debt or handle emergency expenses. As long as you can commit to paying off the balance before your promotional period expires, balance transfer credit cards can be part of a smart savings plan, helping you put your budget back on track. END
 TITLE: What Is a Penalty APR? CONTENT: How a Penalty APR Works\n-----------------------\nCredit cards have an APR for purchases, balances transfers and cash advances. Rates can either be variable and rise or fall based on Federal Reserve rates, or fixed. The rates you receive can also vary depending on the card and your creditworthiness—having good credit can help you get a lower APR.\nA penalty APR is a rate that can be triggered when you don't pay your bill on time. It can be applied in the following ways:\n*   A penalty APR that's higher than your card's regular rate can be charged on future transactions if you don't make your minimum payment by the due date.\n*   Missing your payment by even one day could also lead to losing promotional interest rates, such as an introductory 0% APR.\n*   Once you're 60 days past due, the card issuer can apply the penalty APR to existing balances on your card.\nThere are, however, some strict limitations on when credit card companies can increase your card's APR, according to the Credit CARD Act of 2009:\n*   Your interest rate can't increase during your first year with the card except in certain circumstances, such as when you're 60 or more days late, a promotional rate ends or you have a variable rate and the benchmark rate increases.\n*   After the first year, a card issuer can increase your APR for any reason; however, it must send you a notice first (sometimes these appear on your regular card statement). The higher rate won't take effect for 45 days, and will only apply to transactions made 14 or more days after the notice was sent.\nAdditionally, when your interest rate increases or a penalty APR is applied, the increase might not be permanent. END
 TITLE: What Is a Penalty APR? CONTENT: How Long Does Credit Card Penalty APR Last?\n-------------------------------------------\nIf the card issuer increases your interest rate, it must review your account at least once every six months. If the underlying reason for a rate increase was resolved, then your card issuer should reinstate the original APR.\nPenalty APRs are generally the result of missed payments. Therefore, if you want to get the penalty APR removed, you may have to make six consecutive on-time payments. Paying less than the full amount, or having a payment rejected (bouncing a check, for instance), will result in a missed payment.\nIf you never get back on track, the penalty APR could stay on your account indefinitely—although, if you completely stop making payments, the issuer will likely close your account. END
 TITLE: What Is a Penalty APR? CONTENT: How Is the Penalty APR Calculated?\n----------------------------------\nSimilar to how variable APRs on credit cards work, a penalty APR may be based on a fixed interest rate plus a benchmark rate. Combined, the penalty APR is often at or near 29.99% APR. Cards may also cap the penalty APR at 29.99%, even if a rise in the benchmark rate would otherwise lead to a higher APR.\nThe penalty APR will replace your standard APR, and your account will accrue interest in the same way as before but based on the new rate. Generally, card issuers will divide the APR by 360 or 365 to find your daily periodic rate, and then apply this rate to your daily balance to determine how much interest accrues. END
 TITLE: What Is a Penalty APR? CONTENT: How to Avoid Penalty APR Costs\n------------------------------\nMaking at least your minimum payment on time will help you avoid a penalty APR. It's also how you should be using your credit card anyway, as late payments can lead to fees and lost benefits and hurt your credit even if you don't get hit with a penalty APR.\nAnother option may be to reach out to your credit card company and negotiate a different option before your payment is due. The company may offer you a hardship plan that allows you to temporarily miss payments or make a lower minimum payment without paying any extra fees or penalties.\nBeing mindful of when you use your credit card can also help you avoid a penalty APR in the future. Limiting the purchases you put on the card will lead to a lower balance and a lower minimum payment. END
 TITLE: What Is a Penalty APR? CONTENT: Credit Cards With No Penalty APRs\n---------------------------------\nThere could still be consequences for paying late (including damage to your credit score), but some credit cards don't have a penalty APR. Here are two examples: END
 TITLE: What Is a Penalty APR? CONTENT: ### Chase Sapphire Preferred® Card\nChase Sapphire Preferred® Card\n------------------------------\nApply\non Chase's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nChase Sapphire Preferred® Card\n------------------------------\nAPR\n15.99% - 22.99% Variable\nRewards\n2X points on Travel\n1X points on All Other Purchases\n**Intro Bonus**\nOur best offer ever! Earn 100,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,250 when you redeem through Chase Ultimate Rewards®.\n##### Card Details\n*   Our best offer ever! Earn 100,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,250 when you redeem through Chase Ultimate Rewards®.\n*   Enjoy new benefits such as a $50 annual Ultimate Rewards Hotel Credit, 5X points on travel purchased through Chase Ultimate Rewards®, 3X points on dining and 2X points on all other travel purchases, plus more.\n*   Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 100,000 points are worth $1,250 toward travel.\n*   With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories.\n*   Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash's subscription service. Activate by 12\/31\/21.\n*   Count on Trip Cancellation\/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.\n*   Get up to $60 back on an eligible Peloton Digital or All-Access Membership through 12\/31\/2021, and get full access to their workout library through the Peloton app, including cardio, running, strength, yoga, and more. Take classes using a phone, tablet, or TV. No fitness equipment is required.\nThe Chase Sapphire Preferred® Card is a travel rewards card that hits all the right marks for moderate travelers. It offers a big intro bonus, extra rewards on dining and travel purchases, a variety of redemption options and no foreign transaction fees. However, there is a $95 annual fee.\nShould Finding a Card Without a Penalty APR Be a Priority?\n----------------------------------------------------------\nWhile there are credit cards with and without penalty APRs, you should generally focus on other features, fees and benefits when trying to pick a new card. A penalty APR can lead to more interest expenses, but only if you don't make a minimum payment.\nA penalty APR should also be a low concern relative to the other consequences of missing a credit card payment. Credit card late fees, for example, can cost $20 to $40 and likely outweigh your additional interest charges due to a penalty APR. And if you're worried about being consistently late on your payments, keep in mind that being over 30 days late could result in the card issuer reporting a late payment to the credit bureaus, which will hurt your credit.\nA card that doesn't have an annual fee or has a low standard APR might save you money, making it easier to afford your payments. Even if a card does charge a penalty APR, making all your payments on time will prevent it from affecting you. If you want to compare cards' terms quickly and get matched with cards, you can use Experian CreditMatchTM to review the current offers. END
 TITLE: What Is a Penalty APR? CONTENT: Should Finding a Card Without a Penalty APR Be a Priority?\n----------------------------------------------------------\nWhile there are credit cards with and without penalty APRs, you should generally focus on other features, fees and benefits when trying to pick a new card. A penalty APR can lead to more interest expenses, but only if you don't make a minimum payment.\nA penalty APR should also be a low concern relative to the other consequences of missing a credit card payment. Credit card late fees, for example, can cost $20 to $40 and likely outweigh your additional interest charges due to a penalty APR. And if you're worried about being consistently late on your payments, keep in mind that being over 30 days late could result in the card issuer reporting a late payment to the credit bureaus, which will hurt your credit.\nA card that doesn't have an annual fee or has a low standard APR might save you money, making it easier to afford your payments. Even if a card does charge a penalty APR, making all your payments on time will prevent it from affecting you. If you want to compare cards' terms quickly and get matched with cards, you can use Experian CreditMatchTM to review the current offers. END
 TITLE: Why Do Higher Credit Scores Mean Better Interest Rates? CONTENT: What Is Creditworthiness?\n-------------------------\nCreditworthiness is just what it sounds like—it's how a lender evaluates your credit and decides whether you're eligible for, or worthy of, a new account. When a lender reviews your credit report, they'll look at your repayment track record and other aspects of your borrowing history to get a sense of how likely you are to repay a loan.\nThese items, plus your credit score, help lenders decide whether they feel comfortable letting you borrow money, and if so, what rate they will offer. A poor credit score won't necessarily disqualify a borrower from taking on credit, but it's likely to cause a lender to charge a higher interest rate to offset some of its risk. END
 TITLE: Why Do Higher Credit Scores Mean Better Interest Rates? CONTENT: How Your Credit Score Determines Your Interest Rates\n----------------------------------------------------\nYour credit score and credit report give lenders a window into your past behavior, but they're also viewed as a predictor of your future behavior.\nIf someone has excellent credit, it's likely because they've made responsible financial decisions such as repaying bills on time, keeping debt low and having accounts in good standing over a long period of time. Because lenders can be more confident someone with a higher credit score will repay the debt in full and on time, they usually charge these borrowers a lower interest rate.\nWhen a lender is sure it'll get its money back, it doesn't feel the need to guarantee returns with a high interest rate. When you're applying for a mortgage, a high credit score may also help you qualify for a lower down payment. Again, because you're lower risk in the lender's eyes, it may decide you don't need to provide as much upfront to guarantee the loan.\nWhen someone has less-than-stellar credit, it might be due to missed or late payments, high amounts of debt, or negative marks such as bankruptcy or accounts in collections. A lower score and negative items on a credit report make a borrower appear riskier to a lender. If someone has struggled to pay debts on time or at all, the lender will have concerns that this person might not be able to repay the debt they're applying for.\nA low credit score could also mean someone is brand new to credit and hasn't yet established a positive payment track record. A borrower who doesn't have much of a credit history is more of an unknown and, without a track record that proves their ability to repay, a lender likely won't be as comfortable extending them credit. If a lender does decide to approve someone with lower credit scores, they will often give them a higher interest rate to mitigate risk. END
 TITLE: Why Do Higher Credit Scores Mean Better Interest Rates? CONTENT: How to Improve Your Score to Get Better Rates\n---------------------------------------------\nHaving a good credit score is valuable for numerous reasons, and not just for scoring the lowest interest rates. If you want the best chances of getting approved for loans or credit cards at the lowest interest rates, it's time to get cracking on improving your credit score.\nHere are a few ways to improve your credit score before you apply for new forms of credit:\n*   **Keep your credit card balances low.** Your credit utilization ratio tells lenders how much of your available credit you're using at any given time. Using more than 30% of your credit limit is risky in the eyes of lenders and may lower your credit scores, so try to make sure your credit card balances stay well below your credit limit.\n*   **Make on-time bill payments.** Late or missed payments can really ding your credit score, so pay every bill on time. This includes credit cards, loans and utilities. Set up calendar reminders or autopay if you have trouble remembering when bills are due.\n*   **Don't close accounts unncessarily.** Open credit card accounts contribute to your credit limit and may help keep your utilization rate low, so try to keep them open. If it's a credit card you rarely use, just set up a calendar reminder to use it a few times a year to keep it active. If you don't want to pay the annual fee on an unused credit card, consider asking the card issuer to keep your account open but \"downgrade\" the card to one with no annual fee.\n*   **Check your credit report.** Review your credit report periodically to spot potential fraud, review trouble areas such as high debt and dispute any potential inaccuracies. Checking your own credit report won't lower it, so feel free to check it as often as you like. You can check your credit report for free through Experian or at AnnualCreditReport.com. END
 TITLE: Why Do Higher Credit Scores Mean Better Interest Rates? CONTENT: Another Way to Increase Your Credit Score\n-----------------------------------------\nWhile all forms of credit and debt are shown on your credit report, your utilities aren't on there by default. Now with Experian Boost™† , your on-time payments such as your cellphone bill and other utility bills don't go to waste—you can opt to have them show up on your credit file and help improve your score. END
 TITLE: What Are Introductory Credit Card Rates? CONTENT: What Is a 0% Introductory APR Offer?\n------------------------------------\nThere are a few important parts to every introductory APR offer:\n*   **The promotional rate**: The promotional rate isn't always 0%. But if you can, look for a 0% APR offer to avoid interest altogether for a while.\n*   **The promotional period**: Introductory rates can last for months, and the exact length of time will depend on your offer. When you compare offers, make sure this is a factor you consider. Your remaining balances will start to accrue interest once the promotional period ends.\n*   **Qualifying transactions**: A promotional 0% APR will generally only apply to certain transactions, such as purchases or balance transfers. If you use the card for a different type of transaction, such as a cash advance, that may still accrue interest.\nThere are other things to keep in mind as well. For example, if you don't at least make your minimum monthly payment, the card issuer may charge you a late fee and cancel your introductory rate. END
 TITLE: What Are Introductory Credit Card Rates? CONTENT: How Your Monthly Statement Cycle Works\n--------------------------------------\nAn introductory rate will lower (or bring down to zero) your interest charges, but it doesn't change how your monthly statement cycle works. You'll still need to make at least the minimum payment each month, or else face consequences.\nAn important thing to consider with any card that has a promotional rate is how and when interest accrues. Your new credit card may, for instance, have a promotional 0% purchase APR that applies when you buy things, but no such relief for interest charges on balances you transfer to the card. In this example, you won't be charged interest on your purchases until the end of the introductory rate, but any balance amount you transfer will immediately still start to accrue interest.\nThe opposite can happen if you open a balance transfer card that offers a promotional 0% APR on balance transfers but not on purchases. Unless you pay off the entire balance (from both the purchases and transfers) in full, you may lose the grace period on your account. As a result, your purchases can start to accrue interest daily.\nWhen you make a payment, the credit card company may apply the minimum payment amount to the balance with the lowest APR, which could still leave you with the interest-accruing purchase balance. If you pay more than the minimum, the amount above the minimum gets applied to the higher-rate balance.\nSome cards offer promotional 0% APRs on both purchases and balance transfers, which can help you avoid these situations. END
 TITLE: What Are Introductory Credit Card Rates? CONTENT: How to Save Money With Introductory Credit Card Rates\n-----------------------------------------------------\nIntroductory 0% APR offers can save you money in several ways.\nYou could open a card with a promotional 0% purchase APR, use it for large purchases and pay off the balance during the promotional period without accruing interest. It may even be a better option than a personal loan if you're confident you can completely pay it off before the standard rate kicks in.\nIf you have interest-accruing debt, transferring it to a balance transfer card that has a promotional 0% rate will stop interest charges temporarily and help you pay off the debt sooner. Some cards have a balance transfer fee (often 3% to 5% of the amount you transfer), but the transferred balances won't accrue interest during the promotional period. As a result, a larger portion of your payment can go toward paying down the principal balance. END
 TITLE: What Are Introductory Credit Card Rates? CONTENT: Best 0% Intro APR Credit Cards\n------------------------------\nIf you're only using the card for purchases, you may want to look for a card that offers a 0% purchase APR with a long promotional period. For balance transfer offers, a lengthy promotional period can be important and try to find an offer that has a low balance transfer fee. Here are a few top picks from the Experian CreditMatchTM marketplace:  \n### Wells Fargo Platinum card\nWells Fargo Platinum card\n-------------------------\nApply\non Wells Fargo's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nWells Fargo Platinum card\n-------------------------\nAPR\n16.49%-24.49% (Variable)\nIntro APR\n0% for 18 months from account opening on purchases and qualifying balance transfers\n##### Card Details\n*   0% intro APR for 18 months from account opening on purchases and qualifying balance transfers, then a 16.49% to 24.49% variable APR; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5\n*   $0 Annual Fee\n*   Get up to $600 protection on your cell phone (subject to $25 deductible) against covered damage or theft when you pay your monthly cellular telephone bill with your Wells Fargo Platinum card\n*   Easy access to your FICO® Credit Score with Wells Fargo Online®\n*   Monitor your spending, purchases and any suspicious activity with text and email alerts and notifications\n*   Convenient tools to help create a budget and manage your spending with My Money Map\n*   Select \"Apply Now\" to learn more about the product features, terms and conditions\n*   Matched For You are statements made by Experian and may not reflect Wells Fargo’s underwriting standards\n[Rates and Fees](;offerid=949414.284&type=3&subid=0)\nThe Wells Fargo Platinum card offers an introductory 0% APR on purchases and qualifying balance transfers for 18 months, then a variable ongoing APR of 16.49% to 24.49% depending on your creditworthiness. The card does not have an annual fee, but it doesn't offer any rewards either. You'll also have to pay a 3% balance transfer fee ($5 minimum) on balances that you transfer to the card within 120 days of opening your account—the fee increases to 5% ($5 minimum) after that period.  \n### Chase Freedom Unlimited®\nChase Freedom Unlimited®\n------------------------\nApply\non Chase's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nChase Freedom Unlimited®\n------------------------\nAPR\n14.99% - 23.74% Variable\nIntro APR\n0% Intro APR on Purchases for 15 months\nRewards\n3% cash back on Dining & Drugstores\n1.5% cash back on All Other Purchases\n**Intro Bonus**\nEarn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening. And earn 5% cash back on grocery store purchases (not including Target® or Walmart® purchases) on up to $12,000 spent in the first year.\n##### Card Details\n*   Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening.\n*   Earn 5% cash back on grocery store purchases (not including Target® or Walmart® purchases) on up to $12,000 spent in the first year.\n*   Earn unlimited 1.5% cash back on all other purchases.\n*   Earn 5% on Chase travel purchased through Ultimate Rewards®, 3% on dining and drugstores, and 1.5% on all other purchases.\n*   No annual fee.\n*   0% Intro APR for 15 months from account opening on purchases, then a variable APR of 14.99 - 23.74%.\n*   No minimum to redeem for cash back. Cash Back rewards do not expire as long as your account is open.\nThe Chase Freedom Unlimited® doesn't have an annual fee, offers a flat-rate 1.5% cash back on purchases, and gives new cardholders a 15-month introductory 0% APR on purchases. After the introductory period is up, a 14.99% to 23.74% variable APR applies to purchases. It could be a good option if you plan on using the card for purchases, as you can receive a $200 cash back bonus if you make $500 worth of purchases within 3 months of opening your account.  \nKeep Track of Your 0% APR Offers\n--------------------------------\nWhile an introductory 0% APR promotion can help you save money, you'll still have to pay off the balance if you want to avoid interest. Figure out how much you'll need to pay each month to pay off the balance before your promotion ends, and keep track of your progress as you go. You may even want to budget to pay off the balance a few months early to give yourself wiggle room in case you fall off track. END
 TITLE: What Are Introductory Credit Card Rates? CONTENT: Best 0% Intro APR Credit Cards\n------------------------------\nIf you're only using the card for purchases, you may want to look for a card that offers a 0% purchase APR with a long promotional period. For balance transfer offers, a lengthy promotional period can be important and try to find an offer that has a low balance transfer fee. Here are a few top picks from the Experian CreditMatchTM marketplace: END
 TITLE: What Are Introductory Credit Card Rates? CONTENT: ### Wells Fargo Platinum card\nWells Fargo Platinum card\n-------------------------\nApply\non Wells Fargo's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nWells Fargo Platinum card\n-------------------------\nAPR\n16.49%-24.49% (Variable)\nIntro APR\n0% for 18 months from account opening on purchases and qualifying balance transfers\n##### Card Details\n*   0% intro APR for 18 months from account opening on purchases and qualifying balance transfers, then a 16.49% to 24.49% variable APR; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5\n*   $0 Annual Fee\n*   Get up to $600 protection on your cell phone (subject to $25 deductible) against covered damage or theft when you pay your monthly cellular telephone bill with your Wells Fargo Platinum card\n*   Easy access to your FICO® Credit Score with Wells Fargo Online®\n*   Monitor your spending, purchases and any suspicious activity with text and email alerts and notifications\n*   Convenient tools to help create a budget and manage your spending with My Money Map\n*   Select \"Apply Now\" to learn more about the product features, terms and conditions\n*   Matched For You are statements made by Experian and may not reflect Wells Fargo’s underwriting standards\n[Rates and Fees](;offerid=949414.284&type=3&subid=0)\nThe Wells Fargo Platinum card offers an introductory 0% APR on purchases and qualifying balance transfers for 18 months, then a variable ongoing APR of 16.49% to 24.49% depending on your creditworthiness. The card does not have an annual fee, but it doesn't offer any rewards either. You'll also have to pay a 3% balance transfer fee ($5 minimum) on balances that you transfer to the card within 120 days of opening your account—the fee increases to 5% ($5 minimum) after that period. END
 TITLE: What Are Introductory Credit Card Rates? CONTENT: ### Chase Freedom Unlimited®\nChase Freedom Unlimited®\n------------------------\nApply\non Chase's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nChase Freedom Unlimited®\n------------------------\nAPR\n14.99% - 23.74% Variable\nIntro APR\n0% Intro APR on Purchases for 15 months\nRewards\n3% cash back on Dining & Drugstores\n1.5% cash back on All Other Purchases\n**Intro Bonus**\nEarn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening. And earn 5% cash back on grocery store purchases (not including Target® or Walmart® purchases) on up to $12,000 spent in the first year.\n##### Card Details\n*   Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening.\n*   Earn 5% cash back on grocery store purchases (not including Target® or Walmart® purchases) on up to $12,000 spent in the first year.\n*   Earn unlimited 1.5% cash back on all other purchases.\n*   Earn 5% on Chase travel purchased through Ultimate Rewards®, 3% on dining and drugstores, and 1.5% on all other purchases.\n*   No annual fee.\n*   0% Intro APR for 15 months from account opening on purchases, then a variable APR of 14.99 - 23.74%.\n*   No minimum to redeem for cash back. Cash Back rewards do not expire as long as your account is open.\nThe Chase Freedom Unlimited® doesn't have an annual fee, offers a flat-rate 1.5% cash back on purchases, and gives new cardholders a 15-month introductory 0% APR on purchases. After the introductory period is up, a 14.99% to 23.74% variable APR applies to purchases. It could be a good option if you plan on using the card for purchases, as you can receive a $200 cash back bonus if you make $500 worth of purchases within 3 months of opening your account. END
 TITLE: What Are Introductory Credit Card Rates? CONTENT: Keep Track of Your 0% APR Offers\n--------------------------------\nWhile an introductory 0% APR promotion can help you save money, you'll still have to pay off the balance if you want to avoid interest. Figure out how much you'll need to pay each month to pay off the balance before your promotion ends, and keep track of your progress as you go. You may even want to budget to pay off the balance a few months early to give yourself wiggle room in case you fall off track. END
 TITLE: What Is the Average Interest Rate on a Business Loan? CONTENT: Business loans can take different forms, including installment loans, lines of credit, equipment loans and commercial real estate loans. They can work like personal loans that are used for business expenses such as office leases and employee pay. But there are also types of business loans that work a bit differently, such as accounts receivable financing, which is when a business uses the money it's owed as collateral to get a loan.\nSince business loans are borrowed by businesses and not people, the business's finances and credit are what's scrutinized by a lender. These factors help determine if the business qualifies for a loan, how much it can borrow and the rates and terms it's offered.\nA business loan's interest rate can be impacted by:\n*   **The type of financing**: Different types of loans may offer different interest rates. For example, long-term installment loans tend to have lower rates than business credit cards.\n*   **The type of business**: Some businesses are riskier than others, and lenders may take this into account when setting interest rates.\n*   **Time in business**: Lenders may also consider how long the business has been around. Some lenders won't offer financing to new businesses at all, and others may charge new businesses a higher interest rate.\n*   **The business's finances**: You may need to share copies of your business's financial statements—the balance sheet, cash flow statement, and income statement—as part of the application process. A strong financial position could help you qualify for lower interest rates.\n*   **Market interest rates**: Lenders may base their loans' rates, in part, on a benchmark interest rate. As general interest rates rise or fall, new borrowers may receive higher or lower rates on their loans.\n*   **The business's credit**: Businesses can establish and build credit that's separate from the business owner's personal credit. Credit history and scores can impact the ability to get a loan and the rates the business receives.\n*   **The owner's finances and credit**: For many small and new businesses, the owner's personal finances and credit will be a factor when getting a loan. The owner may also need to personally guarantee that the loan will be repaid if the business isn't able to fulfill its obligation. END
 TITLE: What Is the Average Interest Rate on a Business Loan? CONTENT: Average Interest Rates by Business Loan Type\n--------------------------------------------\nKnowing the average interest rates on different types of business loans can help you determine if you're getting a good deal.\nHere are several average interest rate ranges for popular types of business financing, and the potential rate range for the Small Business Loan (SBA) 7(a) loan program. The ranges come from Nav's research:\n*   **Traditional bank loans**: 2% to 13%\n*   **Online business loans and financing**: 7% to 100%\n*   **SBA 7(a) loans**: 5.5% to 11.25%\n*   **Invoice financing**: 13% to 60%\nThe interest rates don't include fees that creditors may charge, such as an origination fee on the amount you borrow or an annual fee on a business credit card. END
 TITLE: What Is the Average Interest Rate on a Business Loan? CONTENT: How to Check Your Business Credit\n---------------------------------\nFor an established business, the business's credit history and credit scores may be a factor in its ability to qualify for financing and the rates and terms it receives. However, as with your personal credit, there are several business credit bureaus and different business credit scores.\nThe main three business credit bureaus are:\n*   Dun & Bradstreet (D&B)\n*   Experian Business\n*   Equifax Small Business\nEach bureau can provide a copy of your business credit report, which may also come with one (or several) business credit scores. You can also find your business credit reports and scores from third-party sources, such as Nav.com. However, unlike with personal credit, there's no law granting businesses the right to check their credit for free.\nDifferent companies also create business credit scores based on these reports, and some scores also consider the business owner's personal credit. A few commonly used business credit scores are:\n*   The D&B Paydex Score, which ranges from 1 to 100 and may help companies set the terms of a loan or credit line, business insurance rates or even whether they want to work with you as a vendor.\n*   The Experian Intelliscore Plus business credit score, which ranges from 1 to 100 and can incorporate business owner's information. The score tries to predict the likelihood that a business will be seriously delinquent on a debt within the next 12 months.\n*   The FICO® Small Business Scoring Service℠ (SBSS), which can incorporate data from both the business and consumer credit bureaus and has a score range of 0 to 300. Your business may need an SBSS score of at least 140 to qualify for an SBA loan. END
 TITLE: What Is the Average Interest Rate on a Business Loan? CONTENT: How Small Business Loan Approval Rates Are Trending\n---------------------------------------------------\nThe ongoing pandemic has had a profound impact on small businesses and small business lending. Approval rates have slowly since lows in April, but may be leveling off according to the Biz2Credit Small Business Lending IndexSM, which is based on a monthly survey of 1,000 loan applicants.\nSource: Biz2Credit\nMany business owners may be looking for a loan to help them stay afloat or pay for changes that allow them to safely service customers. Or, some may be experiencing rapid growth and need the money to keep up with demand. While approval rates may continue to increase in the coming months, the relatively low rates compared with the beginning of the year show that small business owners may still have trouble qualifying for financing. END
 TITLE: What Is the Average Interest Rate on a Business Loan? CONTENT: How to Lower Your Business Loan Interest Rate\n---------------------------------------------\nIf you're looking for a business loan, there are a few steps you can take to help you find or qualify for a lower rate.\n*   **Improve your personal credit.** Particularly for new and small businesses, your personal credit can play an important role in the rate you receive. Improving your personal credit before applying may help you get more favorable terms.\n*   **Compare lenders.** Lenders may offer you different types of financing, and each lender may have its own method for analyzing your application and determining your loan's interest rate. Applying with several lenders can help you find the loan with the best rate.\n*   **Prioritize loans from banks and the SBA.** If you start early and can qualify, traditional bank loans and SBA loans may have the lowest interest rate. However, the application and funding process can take weeks or months.\n*   **Look for secured loans.** If you can offer business assets as collateral for your loan, you may find it's easier to get a secured loan with a low rate than an unsecured loan.\n*   **Choose a shorter term.** Generally, the less time you take to repay a loan, the lower your interest rate will be. However, your payments will also be higher, which could negatively impact your cash flow.\n*   **Opt for a variable-rate loan.** If your loan has a variable interest rate, the rate may start lower than a similar loan with a fixed rate. It's a risky option, though, as the interest rate and your payment amount may rise in the future.\n*   **Compare fees.** Your loan's interest rate might not be the only cost. Also, review the lenders' fees to determine which loan will cost the least overall. END
 TITLE: What Is the Average Interest Rate on a Business Loan? CONTENT: Check and Monitor Your Personal and Business Credit\n---------------------------------------------------\nAs both your personal and business credit could be a factor in your ability to qualify for a business loan, and the interest rate you'll receive on that loan, you may want to make a habit of checking and monitoring your credit. You can get your free Experian credit report online, which includes free credit monitoring. There's also the Business Credit AdvantageSM service, a paid service that includes daily monitoring and alerts for your Experian business credit report and score. END
 TITLE: How Do 0% Intro APR Credit Cards Work? CONTENT: How 0% Intro APR on Balance Transfers Works\n-------------------------------------------\nCredit cards that offer a promotional 0% APR on balance transfers allow you to move debt to the card and then pay it off over time without accruing interest.\nGenerally, only balance transfers that you request or that are completed (a potentially important distinction you should look for in the terms) within a certain period will qualify for the promotional rate. For example, the 0% APR may only apply to balances transferred within 60 days of opening your account.\nOnce you let your new card issuer know which balances you'd like to transfer to the new card, the issuer will either pay off those balances or issue you a check so you can do so yourself.\nThe transferred balances will receive a 0% APR rate for a promotional period, which typically lasts nine to 21 months, depending on the card and offer. If you pay down the balance in full by the end of the period, you won't pay any interest on that balance.\nMany cards also charge a balance transfer fee, which is often 3% to 5% of the amount you transfer. Compare how much you'll spend on fees with how much you could save on interest to determine whether using a balance transfer offer is a good idea. END
 TITLE: How Do 0% Intro APR Credit Cards Work? CONTENT: How 0% Intro APR on New Purchases Works\n---------------------------------------\nIn addition to a promotional 0% APR offer on transfers, some cards offer a promotional interest-free period on purchases as well. During that period your purchases won't accrue interest as long as you're making the minimum monthly payments on time. Your 0% APR offer on purchases may not be for the same length of time as on balance transfers, so check the card's terms carefully.\nIf you're planning on making a large purchase or have a lot of expenses coming up, a 0% APR on purchases could let you pay down the balance over time without paying interest. It may even be a better option than taking out a personal loan with a low interest rate if you're certain you can pay off the balance before the end of the promotional period.\nAs with a balance transfer, any balance that remains in your account after the promotional period ends will begin to accrue interest at your standard purchase APR. END
 TITLE: How Do 0% Intro APR Credit Cards Work? CONTENT: What Credit Score Qualifies for 0% Intro APR?\n---------------------------------------------\nYou can find many credit cards with a 0% intro APR balance transfer or purchase offer, and there isn't a specific credit score that you'll need to get approved. But generally, you'll want to have a good to excellent credit score before applying.\nCard issuers may determine your credit limit after considering your credit score, income, monthly bills, history with the issuer and credit limits on other cards. If you have poor credit, you might get approved for a card with a low credit limit that won't cover many balance transfers or purchases. END
 TITLE: How Do 0% Intro APR Credit Cards Work? CONTENT: How to Use 0% Intro APR Offers Wisely\n-------------------------------------\nWhen used correctly, a 0% APR offer can save you a lot of money. But here are a few things to be aware of before proceeding. END
 TITLE: How Do 0% Intro APR Credit Cards Work? CONTENT: Look Into These 0% Intro APR Credit Cards\n-----------------------------------------\nHere are some credit cards that currently offer a 0% intro APR promotion.\n### Chase Freedom Unlimited®\nChase Freedom Unlimited®\n------------------------\nApply\non Chase's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nChase Freedom Unlimited®\n------------------------\nAPR\n14.99% - 23.74% Variable\nIntro APR\n0% Intro APR on Purchases for 15 months\nRewards\n3% cash back on Dining & Drugstores\n1.5% cash back on All Other Purchases\n**Intro Bonus**\nEarn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening. And earn 5% cash back on grocery store purchases (not including Target® or Walmart® purchases) on up to $12,000 spent in the first year.\n##### Card Details\n*   Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening.\n*   Earn 5% cash back on grocery store purchases (not including Target® or Walmart® purchases) on up to $12,000 spent in the first year.\n*   Earn unlimited 1.5% cash back on all other purchases.\n*   Earn 5% on Chase travel purchased through Ultimate Rewards®, 3% on dining and drugstores, and 1.5% on all other purchases.\n*   No annual fee.\n*   0% Intro APR for 15 months from account opening on purchases, then a variable APR of 14.99 - 23.74%.\n*   No minimum to redeem for cash back. Cash Back rewards do not expire as long as your account is open.\nThe Chase Freedom Unlimited® also gives you a 15-month promotional period with 0% APR on purchases. There's no annual fee, and there is a $200 intro bonus if you make $500 worth of purchases within your first 3 months, and you can earn 1.5% cash back on purchases.  \nTo explore more offers, you can visit the Experian CreditMatchTM tool and filter the results based on your credit, 0% intro APR offers, no annual fee, rewards and more. END
 TITLE: How Do 0% Intro APR Credit Cards Work? CONTENT: Look Into These 0% Intro APR Credit Cards\n-----------------------------------------\nHere are some credit cards that currently offer a 0% intro APR promotion.\n### Chase Freedom Unlimited®\nChase Freedom Unlimited®\n------------------------\nApply\non Chase's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nChase Freedom Unlimited®\n------------------------\nAPR\n14.99% - 23.74% Variable\nIntro APR\n0% Intro APR on Purchases for 15 months\nRewards\n3% cash back on Dining & Drugstores\n1.5% cash back on All Other Purchases\n**Intro Bonus**\nEarn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening. And earn 5% cash back on grocery store purchases (not including Target® or Walmart® purchases) on up to $12,000 spent in the first year.\n##### Card Details\n*   Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening.\n*   Earn 5% cash back on grocery store purchases (not including Target® or Walmart® purchases) on up to $12,000 spent in the first year.\n*   Earn unlimited 1.5% cash back on all other purchases.\n*   Earn 5% on Chase travel purchased through Ultimate Rewards®, 3% on dining and drugstores, and 1.5% on all other purchases.\n*   No annual fee.\n*   0% Intro APR for 15 months from account opening on purchases, then a variable APR of 14.99 - 23.74%.\n*   No minimum to redeem for cash back. Cash Back rewards do not expire as long as your account is open.\nThe Chase Freedom Unlimited® also gives you a 15-month promotional period with 0% APR on purchases. There's no annual fee, and there is a $200 intro bonus if you make $500 worth of purchases within your first 3 months, and you can earn 1.5% cash back on purchases. END
 TITLE: How Does a 0% APR Offer Impact Your Credit Scores? CONTENT: Lenders and credit card issuers may offer you 0% APR to entice you to take out a loan, use a credit card or transfer balances to a credit card. Generally, the 0% APR is a promotional rate that only lasts a certain amount of time. Once the promotional period ends, any remaining balance will start to accrue interest based on the loan's or card's standard interest rate.\n### Credit Cards With 0% APR\nIf you get a 0% APR offer, it's probably part of a promotion for new cardholders, but sometimes you'll get a 0% APR offer on one of your current cards.\nIt can be helpful to think of your credit card as having different balance categories, each with its own interest rate and APR. For example, your purchases, balance transfers and cash advances could—and probably do—all have different interest rates.\nSome cards offer a promotional 0% APR on both purchases and balance transfers. With others, you may receive a 0% APR on purchases or balance transfers—but not both. As a result, your purchases could accrue interest even if your transferred balances don't (or vice versa).\nThe 0% APR offer means the balance won't accrue interest during the promotional period. But once that period ends, the balance will start accruing interest at your standard rate.\n### Loans With 0% APR\nMost types of loans won't offer 0% APR, but you may see 0% APR offers on auto loans from dealerships. An auto loan may be one of the largest loans you take out, perhaps behind a mortgage or student loans, so the 0% APR could save you a significant amount of money.\nHowever, don't assume the 0% APR offer will save you more money than alternative incentives, such as a cash rebate from the dealership. Also, know that these offers may only be available to applicants with excellent credit and only if you're buying certain vehicles.\nWith 0% APR auto loans, you'll make monthly payments and pay off the loan without paying any interest. However, the 0% APR offer may only be available for certain loan terms, such as 36 or 48 months. This can lead to a higher monthly payment than you'd have with a 60- or 72-month term, which might make the loan too expensive even if you don't have to pay interest. END
 TITLE: How Does a 0% APR Offer Impact Your Credit Scores? CONTENT: How 0% APR Can Impact Your Credit Score\n---------------------------------------\nCredit scoring models don't consider the interest rate on your loan or credit card when calculating your scores. As a result, having a 0% APR (or 99% APR for that matter) won't directly impact your scores. However, the amount of interest that accrues on your loan could indirectly impact your scores in several ways.\n### It Could Add an Account to Your Credit Report\nIf you're opening a new account with a 0% APR offer, the impact on your scores will be the same as if you're opening any new credit account. The new account could add to the mix of types of accounts in your credit reports, which could help your score. However, the hard inquiry noted on your credit report when the lender pulls your credit as well as the decrease in the average age of your accounts may lower your scores, though usually only temporarily.\nOverall, if you're opening a new account and making on-time payments, the account may help improve your scores over time.\n### It Could Affect Your Utilization Rate\nOne of the most important credit scoring factors is your credit utilization ratio, or the percentage of available credit on revolving credit accounts that you're currently using. Opening a new card will increase your available credit, which typically lowers your utilization rate and helps your scores.\nHowever, if you have a 0% APR offer on a credit card, you may be more inclined to let your balance grow. Your utilization rate will then increase, which might hurt your scores. In general, aim to keep your utilization rate under 30% to avoid negatively affecting your scores. For the best credit scores, try for a utilization rate of 6% or lower.\n### It Could Lead to Accidental Late Payments\nSome people may mistakenly believe that a 0% APR loan means they don't have a monthly payment. However, you'll still need to make your monthly loan payment or minimum credit card payment to stay current. Missing a payment by 30 or more days could lead to a late payment on your credit reports, which could hurt your scores. Payment history is the most important factor in your credit scores, so staying up to date on payments is important. END
 TITLE: How Does a 0% APR Offer Impact Your Credit Scores? CONTENT: How to Avoid Paying Interest on a 0% APR Credit Card\n----------------------------------------------------\nEven if you have a 0% APR offer on a credit card, you may need to plan ahead to avoid paying interest.\nIf your card offers a 0% APR on balance transfers and purchases for the same promotional period, figure out how much you'll need to pay each month to pay off the full balance by the end of the promotional period. Otherwise, any remaining balance will start accruing interest at the standard rate once the promotional period ends.\nIf your card offers a 0% APR on balance transfers but not purchases, interest could start accruing immediately if you make purchases with the card you used for the balance transfer. In general, it's best to use your balance transfer card solely to pay off the amount you transferred and use other methods of payment for new purchases. The same goes for cash advances, which should always be avoided if possible.\nAdditionally, with some credit cards (usually store cards), all the interest that would have accrued during the promotional period may get added to your balance if you don't pay off the card's entire balance by the end of the promotional period. While it's always best to have a plan for paying off your balance before the promotional period ends, it's especially important with cards that have this type of deferred interest arrangement.\n### Use 0% APR Offers With Caution\nA 0% APR offer can save you money during the promotional period, but be sure to look at the big picture before taking out a new credit card or loan. It's not free money. You'll still need to repay the debt, and you may wind up paying interest if you can't pay off your loan by the end of the promotional period. END
 TITLE: How Far Will Your Salary Get You When Buying a House? CONTENT: What Percentage of Your Income Can You Afford for Mortgage Payments?\n--------------------------------------------------------------------\nFor most homebuyers, home affordability comes down to a few primary factors: your income, your other debts and expenses, and the lender you're working with.\nLenders use something called the 28\/36 rule to determine how much you can afford in monthly housing payments, which, in turn, determines the maximum loan amount you can qualify for. The name for this rule comes from two measures of how your debt compares to your income—your front-end and back-end debt-to-income ratio (DTI).\n*   **Front-end DTI** measures how much of your monthly gross (pre-tax) income goes toward your mortgage payment (both principal and interest), property taxes and mortgage insurance. Mortgage lenders want their borrowers to be able to keep this below 28%.\n*   **Back-end DTI** includes all of your debt payments in addition to the proposed mortgage payment. Lenders want to make sure these expenses don't exceed 36% of your monthly gross income. This means if 10% of your income goes toward other debts, you may be limited to 26% of your income for housing payments instead of 28%.\nAs an example, if you earn a $60,000 salary, that's $5,000 in gross income every month. Using the 28\/36 rule, you can afford up to $1,400 per month in housing expenses and $400 per month in additional debt payments. If you have $600 in non-housing debt payments every month, the lender may limit you to $1,200 in housing payments.\nIt's important to keep in mind that there are lenders and loan types that allow you to exceed these limits. Federal Housing Administration (FHA) loans, for instance, allow borrowers to have up to a 31% front-end DTI and 43% back-end DTI. But if you're taking on more debt than is recommended, it could cause lenders to view you as more of a risk of default, and you may end up with a higher interest rate because of it. END
 TITLE: How Far Will Your Salary Get You When Buying a House? CONTENT: Mortgage Affordability by Profession\n------------------------------------\nTo give you an idea of what you might be able to afford based on your profession, here's how these DTI limits compare with salaries of some of the most popular jobs, according to the Bureau of Labor Statistics:\nSource: U.S. Bureau of Labor Statistics. Jobs are listed in order of projected growth through 2028.\nIt's important to note that, depending on your income and where you live, buying a home may not be an option based on debt-to-income limits alone. By applying with a spouse or other trusted family member who also has income, you may be able to improve your chances of purchasing a home. END
 TITLE: How Far Will Your Salary Get You When Buying a House? CONTENT: How Does Credit Affect Mortgage Affordability?\n----------------------------------------------\nA crucial factor in calculating your monthly mortgage payment is the loan's interest rate. To help determine what your interest rate would be, lenders review your credit report and credit score in addition to other factors.\nIn general, borrowers with higher credit scores can secure lower interest rates because they're able to show that they've managed their debts well in the past. In the lender's eyes, this positive payment history lessens the risk that the borrower will default on their monthly mortgage payments.\nOn the flip side, a low credit score could result in a higher interest rate or even the outright denial of an application. The minimum credit score for a mortgage loan can vary based on the lender and the type of loan you're applying for. END
 TITLE: How Far Will Your Salary Get You When Buying a House? CONTENT: How Does Your Down Payment Affect Mortgage Affordability?\n---------------------------------------------------------\nYour down payment plays a big role in your mortgage's affordability. The size of your down payment affects the amount of the monthly payment you'll be making to cover the rest of the mortgage amount; a bigger down payment decreases your monthly payment and vice versa. So, if you're worried about your DTI affecting your mortgage eligibility, coming up with a larger down payment can help you qualify.\nFor example, if you're buying a $250,000 home with a 4% interest rate over 30 years, a $20,000 down payment would give you a monthly principal-and-interest payment of $1,098. But if you put down $40,000, your monthly payment would drop to $1,003—and you'd also save nearly $35,000 in interest over the life of your loan.\nWhile a 20% down payment is a standard recommendation from mortgage experts, it's not a requirement. In fact, many lenders allow down payments as low as 3% or 5% of the loan amount.\nIf you don't have a lot of cash for a down payment and you're a first-time homebuyer, there are several programs and grants that can provide you with down payment assistance or even loans with no down payment requirement.\nConsider more than just your monthly payment as you decide how much money to put down. For example, if you drain your savings for a down payment, you could experience some difficulties if you have a financial emergency in the near future.\nOn the other hand, if you put too little down and housing prices drop after your purchase, you could end up upside down on your mortgage loan, which can make it challenging to move or sell the home. END
 TITLE: How Far Will Your Salary Get You When Buying a House? CONTENT: Your Credit Is Key When Buying a House\n--------------------------------------\nThere are a lot of moving parts in the mortgage process, and lenders will review a lot of variables to determine whether you qualify for a mortgage and how much you can afford. Your credit score is one of the most important of these variables, so it's crucial that you take time to improve it before you apply for a mortgage loan.\nStart by checking your credit score and credit report to see where you stand and which areas you need to address. Then start taking the necessary steps to do so.\nThis may include getting caught up on past-due payments, paying down credit card debt, disputing inaccurate credit report information and more. Use your credit report as a guide to decide how to build your credit score. END
 TITLE: How Can I Get Prequalified for a Mortgage Loan? CONTENT: Differences Between Mortgage Prequalification and Preapproval\n-------------------------------------------------------------\nPrequalification and preapproval are essentially the same concept: They're processes lenders use to determine whether a potential borrower can afford to take out a loan or credit card. With some loan types, these terms are used interchangeably. When you're applying for a mortgage loan, however, there are some distinctions between the two.\nFor starters, prequalification includes a simple check of your finances and credit history to give you an estimate of how much you can borrow if you qualify for the loan—there is no guarantee based on a prequalification alone. For many, it's the first step they'll take when they reach out to a mortgage lender or broker.\nPreapproval, on the other hand, gives you a more accurate picture of whether you're eligible for a mortgage loan, as well as what interest rate and terms you can expect. You'll submit an official mortgage loan application, and the lender will provide you with a preapproval letter, which is good to use when making an offer on a house for up to 90 days from the date the letter is issued.\nKeep in mind, though, that an approval letter is an offer from the lender, not a commitment to finance. You'll need to undergo another check of your credit history and finances at closing to solidify your financing terms. END
 TITLE: How Can I Get Prequalified for a Mortgage Loan? CONTENT: You'll work directly with a mortgage lender or broker to go through the prequalification process. Depending on the financial institution, you may be able to get prequalified online, over the phone or in person.\nWhile each lender can vary in terms of the documentation they require, you can generally expect to provide:\n*   Income information\n*   Personal information (so the lender can perform a credit check)\n*   Basic bank account information\n*   How much you want to borrow\n*   How much you plan to put down\nAt this stage, you may not be required to provide tax information, pay stubs or bank statements, which means the lender is basing its decision on incomplete information. As a result, a prequalification won't guarantee approval.\nIt's also important to note that the requirements for prequalification can vary based on the situation. Take this time to ask questions about the different loan types, interest rates, repayment terms and other details that can help you make a more informed decision. END
 TITLE: How Can I Get Prequalified for a Mortgage Loan? CONTENT: How Does a Mortgage Prequalification Affect Your Credit?\n--------------------------------------------------------\nAs with other loan types, getting prequalified for a mortgage won't hurt your credit score. That's because the lender will typically run just a soft credit inquiry, which will show up on your credit report but won't impact your credit score.\nIf you decide to move forward to get preapproved, though, expect a hard credit check, which can impact your credit score negatively, if only by a little.\nBefore you start this process, it's crucial to speak with your mortgage lender or broker to make sure you understand what you're agreeing to with prequalification. The last thing you want is a surprise hard inquiry when you thought your credit score was safe. END
 TITLE: How Can I Get Prequalified for a Mortgage Loan? CONTENT: How to Improve Your Chances of Getting a Mortgage\n-------------------------------------------------\nMortgage lenders tend to be pickier with borrowers than some other types of lenders, so it can be discouraging if you're not qualified for a loan or if the terms are unfavorable.\nWhether or not you think your credit score is in good shape, follow these steps to get your credit mortgage-ready before you submit an application:\n*   **Check your credit score and report.** Get free access to your FICO® Score☉ through Experian, plus access to your Experian credit report, which is updated every 30 days. You'll also be able to order a free credit report weekly from each of the three national credit bureaus through April 2021 via AnnualCreditReport.com. Normally, it's just once every 12 months for each free report.\n*   **Pay down existing debt.** Reducing your credit card debt helps lower your credit utilization ratio, which is a major factor in determining your FICO® Score. What's more, paying off credit cards or other loans in full means that monthly payment is no longer an obligation. The result is a lower debt-to-income ratio, which helps determine your basic eligibility for a mortgage loan and how much you can borrow if you qualify.\n*   **Look for ways to increase your income.** Another way to lower your debt-to-income ratio is by increasing your income, which is the denominator in that equation. Look for opportunities to take on extra work, and consider asking for a raise or consistent overtime hours. Additionally, you can include income earned from a side business. Just be ready to provide a lot more documentation for self-employment income.\n*   **Avoid borrowing leading up to and during the mortgage process.** Any new debt you take on will impact your ability to get a mortgage loan, as well as the capacity to make your payments. As such, it's critical that you avoid opening any new credit accounts for a handful of months before you start the prequalification process. Also, because mortgage lenders run another credit check shortly before closing, you'll want to avoid borrowing from other sources until you've closed.\nImproving your credit score can take time, especially if you've made some credit missteps in the past. But even a slightly lower interest rate could save you thousands or even tens of thousands of dollars on a mortgage. So unless you're forced to make a decision now, take your time and make sure your credit is in good shape before you get prequalified. END
 TITLE: How Can I Get Prequalified for a Mortgage Loan? CONTENT: Continue to Monitor Your Credit During and After the Mortgage Process\n---------------------------------------------------------------------\nChecking your credit score and reports regularly will give you an accurate picture of where you stand and which areas of your credit profile you need to address. However, it's arguably even more important to check while you're going through the mortgage process because anything negative change to your profile could ruin your chances of getting approved.\nUsing Experian's free credit monitoring tool, you can view your FICO® Score and Experian credit report and also get real-time updates when changes have been made to your credit report, including new inquiries, new accounts and updated personal information.\nEven after you've closed on your new home, avoid the urge to ignore your credit score until you need it again. Continue to check your credit score and report regularly, so you can ensure you get favorable financing the next time you need to borrow. END
 TITLE: Does Refinancing Reset Your Loan Term? CONTENT: How Does Refinancing a Loan Affect the Loan Term?\n-------------------------------------------------\nYou can refinance a debt by taking out a new loan and using the proceeds to pay off a current debt. The new lender might pay your current creditor directly, or it could send you the money, which you'd use to pay off your current loan.\nIn either case, your new repayment term options can depend on the type of loan, the lender, the loan amount and your creditworthiness. If you can choose between a shorter- and longer-term loan, consider:\n*   A shorter term could help you qualify for a lower rate and mean you'll pay off the debt sooner, but it will also lead to a higher monthly payment.\n*   A longer term can lower your monthly payments, but results in paying more interest overall.\nThere are pros and cons to both options, and the best choice will depend on your current financial situation and goals. END
 TITLE: Does Refinancing Reset Your Loan Term? CONTENT: Is It Possible to Refinance Without Restarting Your Loan Term?\n--------------------------------------------------------------\nBecause refinancing involves taking out a new loan with new terms, you're essentially starting over from the beginning. However, you don't have to choose a term based on your original loan's term or the remaining repayment period.\nFor example, if you're refinancing your mortgage, you may find that the top mortgage refinance lenders offer several repayment terms, including 10-, 15- and 30-year terms. You might choose to \"restart\" with the same term you originally had, perhaps 15 or 30 years—but that's not required. You may decide on a shorter or longer term depending on the corresponding interest rate and monthly payment. END
 TITLE: Does Refinancing Reset Your Loan Term? CONTENT: When Does It Make Sense to Refinance a Loan?\n--------------------------------------------\nRefinancing a loan can make sense when you can save money by paying less interest, free up room in your budget by lowering your monthly payment, or change other terms of your loan. Generally, you may want to look into refinancing when:\n*   Market interest rates have dropped\n*   Your credit has improved\n*   You have a variable-rate loan and want to lock in a fixed rate\n*   You can lower your monthly payments\n*   You want to remove a cosigner from a loan, such as a parent from a student loan or a former spouse from a mortgage\nSaving money is a common goal. However, if you're looking into refinancing because you're having trouble affording your payments, also ask your lender about hardship options. Lenders may offer to temporarily or permanently modify your loan's interest rate, term or other specifics without refinancing. But generally, this only happens when borrowers are experiencing a hardship and have trouble affording their regular payments.\nYour decision can also depend on the type of loan you want to refinance and the cost involved. Watch out for the following:\n*   Personal loans may have application and origination fees, while credit cards often charge balance transfer fees.\n*   For secured loans, such as a mortgage, see if there will be closing costs that you need to pay or add to your loan amount.\n*   Your current lender may charge a prepayment penalty or fees if you pay off the loan early.\nSay you have a $5,000 personal loan at a 16% annual percentage rate (APR) with 36 months remaining and there's no prepayment penalty. Refinancing with a fee-free personal loan at 13% APR and the same 36-month repayment term lowers your monthly payment from about $176 to $168, saving you about $263 overall.\nHowever, if the lender charges a 5% origination fee, you'll repay $5,250 at 13% APR over 36 months. Even with the lower interest rate, your monthly payment goes up by about $1, and you pay about $40 more overall.\nHere are a few key points to keep in mind if you're considering refinancing different types of debt:\n*   **Credit cards**: You may be able to refinance credit card debt with either a balance transfer credit card or a loan. Balance transfer cards may offer an introductory 0% promotional APR before switching to a standard APR. A personal loan will charge interest from the start, but may be a better option if you'll need more time to pay off the balance, especially if you can qualify for a personal loan without an origination fee.\n*   **Personal loans**: Refinancing a personal loan with a new personal loan can be a fairly straightforward process. However, be careful about refinancing an unsecured loan with a secured debt, such as a home equity loan or line of credit that uses your home as collateral. Creditors can repossess or foreclose on your property if you miss too many secured loan payments.\n*   **Auto loans**: Auto loan refinancing options can depend on your finances, the lender and the vehicle's current value. The process may be similar to when you took out an auto loan for the purchase, but watch out for prepayment penalties on your original loan.\n*   **Student loans**: Private student loans generally don't have origination or prepayment fees. If you have private student loans, refinancing with a lower-rate student loan can be an easy way to save money. But refinancing federal loans with a private loan brings up all sorts of pros and cons. Even if you can lower your interest rate, your loan will no longer be eligible for special federal protection, forgiveness and repayment programs.\n*   **Mortgages**: Low mortgage rates often make headlines because refinancing a mortgage can lead to significant savings. A cash-out refi also lets you tap into the equity you've built in the home. In either case, be mindful of the closing costs as it can take several years to break even; refinancing might not make sense if you plan to move soon. END
 TITLE: Does Refinancing Reset Your Loan Term? CONTENT: How Does Refinancing Affect Your Credit?\n----------------------------------------\nCredit scores don't consider the interest rate or repayment term of your accounts, and refinancing generally has a minor impact when you're replacing a loan with a new loan of the same type. But here are a few reasons why you may see your scores change:\n*   **Opening a new account**: Adding a new account to your credit report can lower the average age of your accounts, which may also hurt your score. However, making your new payments on time can help your credit.\n*   **Closing accounts**: The accounts you pay off will generally be closed, which can sometimes hurt scores. But your closed accounts can stay on your report for up to 10 years and continue to impact age-related scoring factors during that time.\n*   **Hard inquiries on your credit report**: When you apply for a new loan, the creditor will check your credit, causing a hard inquiry to appear. These may hurt your credit scores, although the impact is small and temporary.\nOne exception is when you refinance or consolidate credit card debt with an installment loan, such as a personal loan. Moving revolving debt to an installment loan can lower your credit utilization rate, which can have a significant, positive impact on your scores—as long as you don't run up balances on the cards you just paid off. END
 TITLE: Does Refinancing Reset Your Loan Term? CONTENT: Prepare Your Credit for Refinancing\n-----------------------------------\nWhatever your motivation for refinancing, having good credit can be important when you want to get approved for a new loan. You can check your Experian credit report and FICO® Score☉ for free, and get insight into what's hurting and helping your score. Then focus on improving your score to help you get the best offer when refinancing a loan. END
 TITLE: Can I Refinance My Mortgage Without an Appraisal? CONTENT: How Does No-Appraisal Refinancing Work?\n---------------------------------------\nRefinancing your mortgage replaces your current home loan with a new loan. The process of applying and qualifying is similar to what you experienced when you first took out your mortgage, including having to pay many similar closing costs—such as a fee for a new appraisal, which may cost $300 to $700.\nA mortgage refinancing can be worth the time and money if you can qualify for a lower interest rate that makes it possible to decrease your monthly payment and save you money over the life of the loan. Or, if you're looking to borrow money, a cash-out refinance lets you take out a new loan that's larger than your current balance and keep the difference in cash.\nYour new lender may want your home appraised before it agrees to lend you money. After all, it wouldn't want to issue you a $175,000 mortgage on a house worth only $150,000.\nBut if you'd rather save the time and money it takes to have your home appraised, you do have options. Some private mortgage lenders offer no-appraisal refinancing if you qualify for a waiver. And you may qualify for no-appraisal refinancing if you have a government-backed loan through the Federal Housing Administration (FHA), U.S. Department of Agriculture (USDA) or Department of Veterans Affairs (VA). END
 TITLE: Can I Refinance My Mortgage Without an Appraisal? CONTENT: Are There Drawbacks of Refinancing Without an Appraisal?\n--------------------------------------------------------\nIn addition to saving you a few hundred dollars, skipping an appraisal can hasten the time it takes to close the deal and prevent a low appraisal from ruining your chance to refinance. However, paying for an appraisal can also be a good idea, even if you have the option for a no-appraisal refinance.\nIf you believe your home has increased in value, a higher appraisal might help you qualify for refinancing with a better interest rate because your LTV ratio will be lower. The savings from even a small decrease in your new mortgage's interest rate could more than offset the cost of the appraisal. Or, if you're looking for a cash-out refinance, you may qualify for a larger loan based on your home's high value.\nYou may also benefit from an appraisal if you're paying for private mortgage insurance (PMI). Once you have 20% equity in the home, you may be able to save money by canceling your PMI coverage. If you're already at that point based on your home's current value, getting it appraised before refinancing could help you get rid of the PMI. END
 TITLE: Can I Refinance My Mortgage Without an Appraisal? CONTENT: When It Makes Sense to Skip the Appraisal\n-----------------------------------------\nIf you don't think your home's value has increased or you aren't looking for a cash-out refinance, you may be better off avoiding an appraisal. Doing so will save you money and time, and help you avoid the headaches that can come with a lower appraisal.\nAlthough they might not reflect the value an in-person appraiser will assign to your home, you can look for estimates on real estate websites. These can help you get a ballpark sense of how much a similar home in your neighborhood is worth, and then you can make adjustments based on required maintenance or repairs that an appraiser may notice during a visit. END
 TITLE: Can I Refinance My Mortgage Without an Appraisal? CONTENT: How Refinancing Your Home Can Affect Your Credit\n------------------------------------------------\nRefinancing can impact your credit scores in several ways, as you'll be paying off your old loan and applying for and taking out a new one. Overall, however, the impact may be minimal.\nApplying for a refinance loan can lead to a hard inquiry, which may hurt your credit scores a little. Additional applications that cause more hard inquiries could increase that negative impact, but multiple hard inquiries for the same type of loan will only count as one hard inquiry if they occur within a 14- to 45-day period (the timing depends on the credit scoring model). This means you're still able to rate shop to try and get the best rate.\nThe new loan will also decrease the average age of your accounts, which could hurt your scores a little. Your original mortgage will be paid off and closed, but your payment history on that loan can continue to help (or hurt) your credit, as the account will stay on your credit report for up to 10 years. Continuing to make your payments on time on the new loan can also help your credit.\nMake sure a mistake or delay during the refinance process doesn't lead to you accidentally missing a payment on your original mortgage. Otherwise, a late payment could be reported, which could lead to a large score drop. END
 TITLE: What’s the Difference Between Fixed-Rate and Adjustable-Rate Mortgages? CONTENT: How Do Adjustable-Rate Mortgages Work?\n--------------------------------------\nThe nuances of how and when ARM rates adjust vary from loan to loan, but when they change, they almost always bring an increase in monthly payments. It's critical to read your loan agreement carefully before signing to make sure you understand all the specifics. These are variables to bear in mind when comparing adjustable-rate mortgages:\n*   **The length of the introductory period**: Five-year introductory periods on 30-year loans are common, but one-, three- and seven-year introductory periods are all possible.\n*   **The _index_ to which the floating rate is tied**: Indexes commonly used to set ARM rates include the yield on one-year constant-maturity Treasury (CMT) securities, the Cost of Funds Indices (COFI), and the London Interbank Offered Rate (LIBOR), which will be eliminated in 2021 but is still widely used to set ARM rates.\n*   **The _margin_ added to the index to determine the rate you pay**: The margin is a fixed percentage specified in the loan agreement. Margin ranges vary for different indexes (2% to 3% with the LIBOR is fairly common, for example). The lower the margin, the better the loan terms are for you because even a small percentage point difference can drastically change the cost over the life of a 30-year mortgage.\n*   **Rate adjustment frequency**: Once the introductory period ends, the rate on an ARM resets at regular intervals. Once a year is common, but two- and three-year periods may also be used, and some ARMs reset every six months. On the reset date, a new rate is calculated by adding the margin to the value of the index on that day; the new rate applies until the next reset date.\n*   **Rate caps**: To prevent extreme increases in ARM rates, ARMs typically limit the amount their interest rates can increase. A _periodic cap_ limits the amount the rate can increase from one adjustment period to the next, while a _lifetime cap_ limits the total amount the rate can ever increase over the introductory rate. Some ARM loan agreements also specify _payment caps_—limits on the amount your monthly payment can rise each readjustment period.\nWhen comparing mortgage offers, you'll often see shorthand that summarizes interest rate, introductory period and rate-adjustment frequency: A 3.8% 5\/1 ARM, for instance, has an introductory period of five years, after which it resets every year, while a 3.75% 3\/2 ARM has a three-year introductory period, after which the rate resets every two years. For more details on the ins and outs of ARMs, the Federal Reserve offers a very thorough handbook. END
 TITLE: What’s the Difference Between Fixed-Rate and Adjustable-Rate Mortgages? CONTENT: How Do Fixed Rate Mortgages Work?\n---------------------------------\nA fixed-rate mortgage is the most popular type of mortgage loan, and its interest rate stays the same for the entire life of the loan. These loans most often come in 30-year terms, but you can also find them with terms of 10, 15 or 20 years. The shorter the term, the lower the interest rate—but the higher the monthly payment since the loan is repaid in a more compact time frame. END
 TITLE: What’s the Difference Between Fixed-Rate and Adjustable-Rate Mortgages? CONTENT: How to Choose Between an Adjustable-Rate and Fixed-Rate Mortgage\n----------------------------------------------------------------\nHere are a few questions to ask yourself as you decide whether an adjustable-rate mortgage or fixed-rate mortgage makes the most sense for your home purchase.\n*   **How long do you plan on living in your home?** As mentioned, ARMs often work best for those who don't plan to stay in the home for more than a few years, since you'll get to spend some or all of the time paying the low introductory rate and avoiding the probable higher rate that will kick in later. If you plan to be in the home for the long term, a fixed-rate APR may be best since it will remain predictable.\n*   **What do current interest rates look like?** When mortgage rates are on the high side, getting locked in to a fixed-rate loan could be expensive (though you may be able to refinance later). In that case, the risk of an ARM could be worth it since the introductory rate will be lower than fixed-rate loans. On the other hand, if mortgage rates are currently low, it could be a great time to lock down a fixed-rate loan since future market changes won't impact you.\n*   **Will you be able to afford payments if interest rates rise?** The beauty of fixed-rate mortgages is the predictability of your monthly payments. If you're on a tight budget, this certainty can help you stay on track. While ARMs start off with a lower rate, they can rise later, which would increase your monthly payment. Consider how flexible your budget is (or isn't) and whether you'd be able to afford a higher mortgage payment if interest rates go up. END
 TITLE: What Is Regulation Z and How Does It Protect Borrowers? CONTENT: Regulation Z is part of the Truth in Lending Act of 1968 and applies to home mortgages, home equity lines of credit, reverse mortgages, credit cards, installment loans and certain student loans.\nUnder the regulation, lenders are required to provide borrowers with access to interest rates, fees and finance charges in writing. Other aspects of the law include:\n*   Lenders must provide monthly billing statements to borrowers.\n*   Creditors must notify borrowers when there's a change in the interest rate on a variable-rate loan.\n*   Consumers will receive fair and timely responses to billing disputes.\n*   Mortgage lenders are prohibited from using unfair practices that give rise to a conflict of interest between the lender and a mortgage broker. END
 TITLE: What Is Regulation Z and How Does It Protect Borrowers? CONTENT: How Regulation Z Protects You With Mortgages\n--------------------------------------------\nThe primary way the regulation protects consumers during the mortgage process is by eliminating a conflict of interest for mortgage brokers.\nMore specifically, mortgage lenders aren't allowed to change a broker's fee based on the terms of the loan—which means brokers can't increase their commission check by pushing homebuyers to borrow more money or take on a loan with unfavorable terms.\nAs a result, borrowers can work with a broker they know won't get a kickback and will work with the homebuyer's best interests in mind.\nRegulation Z also requires mortgage lenders to provide borrowers with a written disclosure of rates, fees and other finance charges. Plus, if you have an adjustable-rate mortgage, they're required to let you know in advance if your rate will be changing. END
 TITLE: What Is Regulation Z and How Does It Protect Borrowers? CONTENT: How Regulation Z Protections You With Credit Cards\n--------------------------------------------------\nSince the enactment of the Credit CARD Act of 2009, Regulation Z has provided expanded protections and rights for credit card holders including:\n*   **Liability for unauthorized use**: Your maximum liability for credit card fraud is just $50, and a lender must meet certain requirements before it can hold you liable for any amount of an unauthorized charge.\n*   **Promotional rates**: If a credit card offers a promotional interest rate, the card issuer must state when the promotional period will expire, what the ongoing APR will be after the promotion ends and whether a promotional fee applies and how much. It also requires lenders to note that a deferred interest promotion may incur interest retroactively if you don't pay the balance in full by the end of the promotional period.\n*   **Marketing to college students**: Regulation Z limits how credit card issuers can market their products to college students. For example, they can't offer goods—such as a gift card or T-shirt—as an incentive, and cannot advertise to students within 1,000 feet of college campuses.\n*   **Disclosures**: When you open an account, credit card issuers must provide clear information about a card's interest rate, fees and other finance charges and make certain additional disclosures. You're also entitled to a notification when your card issuer changes your variable interest rate.\n*   **Penalty fees**: If you miss payments on your account, some card issuers may choose to assess a penalty fee. According to Regulation Z, this penalty must be reasonable and proportionate to the violation, and there are hard limits on such fees.\nCredit cards and other types of open-ended credit, including home equity lines of credit, are also covered by a billing dispute process. If you provide information about a billing error within the past 60 days, the lender must send written acknowledgment of the dispute within 30 billing days.\nIf the creditor confirms the billing error—which must happen within two billing cycles and no more than 90 days later—it must correct the error, refund the disputed amount, update fees and other charges associated with the error, and provide the customer with a correction notice. END
 TITLE: What Is Regulation Z and How Does It Protect Borrowers? CONTENT: How Regulation Z Protects You With Other Loans\n----------------------------------------------\nRegulation Z also applies to installment loans, including but not limited to personal loans, auto loans and short-term installment loans. With student loans, however, it applies to private student loans.\nAcross all types of installment loans, you'll receive all the basic protections other borrowers receive. That includes the right to a monthly billing statement, access to fair and timely responses to billing disputes and clear details about a loan's interest rate and fees. END
 TITLE: What Is Regulation Z and How Does It Protect Borrowers? CONTENT: What to Do if Your Regulation Z Rights Are Violated?\n----------------------------------------------------\nIf you believe your bank, credit card issuer or loan provider isn't following the rules of Regulation Z, and that's resulted in your rights being violated, start by calling their customer service line and requesting to speak with a supervisor or manager about the issue. The violation may have been a result of a mistake or a misunderstanding.\nIf the lender refuses to make the situation right, you can file a complaint with the Consumer Financial Protection Bureau, which has rule-making authority for the Truth in Lending Act. You can also submit a complaint to the Federal Trade Commission.\nAs a last resort, you may also consult an attorney, who can help you settle the matter directly with the creditor or in a court of law. END
 TITLE: What Is Regulation Z and How Does It Protect Borrowers? CONTENT: Make Your Credit a Top Priority\n-------------------------------\nRegulation Z provides some excellent protections for consumers, but it's still your responsibility to read the fine print for every credit card or loan you apply for.\nAlso, keep in mind that billing disputes are valid only if you report them within 60 days of the lender sending the statement that reflects the error. As such, it's important to stay on top of your billing statements and review transactions to make sure everything is accurate.\nFinally, take the time to keep track of your credit score. With Experian's credit monitoring service, you'll get free access to your FICO® Score☉ plus updates when new inquiries and credit accounts are added to your Experian credit file.\nMonitoring your credit and developing good credit habits can help you improve your chances of qualifying for credit with favorable terms. END
 TITLE: Your Guide to Refinancing a Mortgage With Bad Credit CONTENT: What Credit Score Do You Need to Refinance a Mortgage?\n------------------------------------------------------\nCredit requirements vary by lender and type of mortgage. In general, you'll need a credit score of 620 or higher for a conventional mortgage refinance. Certain government programs require a credit score of 580, however, or have no minimum at all.\nAs is true for other types of loans, the higher your credit score, the more likely a mortgage refinance lender will be to work with you. Not only are your chances of approval higher, but you'll typically receive a lower interest rate and more favorable loan terms than qualifying borrowers with lower scores.\nBeyond credit score, it's also worth evaluating whether you have the funds to pay the closing costs and fees associated with refinancing, including any prepayment penalties your original lender may charge. You'll typically need at least 20% equity in your property to refinance, too, meaning you've made enough headway on your mortgage to own a portion of the home.\nLenders will also look at your debt-to-income ratio (DTI), or your total monthly debt payments compared with your income. It's ideal for your debt obligations to be no more than 36% of your monthly earnings, though some lenders will accept a higher amount.\nIf your credit score falls under the 620 threshold, you may not be able to compare offers from multiple conventional lenders, but you still have options:\n1.  **Apply through your current lender.** Let your mortgage lender know you're interested in a refinance. It might be more likely to work with you to keep your business, and it might be more willing to take into account factors other than credit score. But you'd also be smart to shop around and compare rates from other sources, and let your lender know you're exploring or have received other offers.\n2.  **Choose an FHA refinance option.** The Federal Housing Administration (FHA) provides multiple mortgage refinancing programs for those with lower credit scores. They include:\n*   _FHA streamline refinance_: As its name implies, this process allows you to refinance an FHA loan with less paperwork than a typical refinance, as long as you've made 12 on-time mortgage payments. It will typically result in a lower mortgage payment.\n*   _FHA rate-and-term refinance_: You can refinance a conventional loan into an FHA loan, but you won't be eligible for the streamlined process, and you'll need to supply income and credit verification. You also must be able to demonstrate 12 months of on-time mortgage payments.\n*   _FHA cash-out refinance_: This option allows you to get a new home loan larger than your previous loan, plus cash for the difference. To qualify you'll need at least 20% equity in your home and a history of on-time payments for 12 months—or for the length of the loan term so far, if it's shorter than that.\n4.  **Look into a VA interest rate reduction refinance loan.** If you currently have a home loan from the U.S. Department of Veterans Affairs, known as a VA loan, you can refinance it without undergoing a credit underwriting process or a home appraisal. You could also avoid paying out-of-pocket fees, since they can be rolled into the cost of the loan. The agency recommends comparing rates from multiple lenders before moving forward.\n5.  **Consider a USDA streamline refinance.** Current homeowners with mortgages from the U.S. Department of Agriculture can refinance their USDA loans even if they have no or low equity. Similar to an FHA loan refinance, you're not required to undergo a credit review, but you must show 12 months of on-time payments. You must also meet income eligibility requirements.\n6.  **Apply for a cash-out refinance**: A conventional cash-out refinance is typically easier to get for borrowers with poor or fair credit than a traditional refinance. That's partly because the lender that issues your new loan has the ability to seize your home as collateral if you default on the mortgage. Be wary of closing costs and private mortgage insurance, however, which you may have to pay if your loan is 80% or more of the home's value. These costs could negate or reduce the value of the refinance.\nHow to Improve Your Credit to Qualify for a Mortgage Refinance\n--------------------------------------------------------------\nWhen you're considering refinancing a mortgage, there are multiple ways to get your application in the best shape possible—both in terms of your credit score and other factors.\n*   First, it's best if you can demonstrate that you have stable and sufficient income to cover your new mortgage payments. While lenders typically want to see that your debt payments do not exceed 36% of your monthly income, that limit could reach 50% in some circumstances. You may strengthen your candidacy for a refinance by paying down credit card or student loan balances before shopping for a new home loan to reduce your DTI.\n*   Your application will also benefit from your ability to show cash reserves. Experts recommend keeping an emergency fund of at least three to six months of your average expenses. While this can help you stay afloat in a crisis such as job loss, it also proves to lenders that you're able to establish and maintain a savings fund, which can cover mortgage payments in a pinch.\n*   You can also consider adding a cosigner to the refinance application, though it's important to make sure they understand they'll be required to make payments if you can't. The cosigner must also have strong enough credit to boost your approval odds. On the flip side, if you have a cosigner on your current mortgage and their credit score has fallen since you first got the loan, you could remove them and try to qualify for a refinance on your own.\n*   Finally, work on improving your credit, which can only help your chances of refinancing. This includes not only paying down balances, but putting bill payments on autopay so you never miss one. Particularly before applying for a home loan, avoid getting other types of new credit, which could result in a hard inquiry on your credit report. Hard inquiries negatively affect your credit score for a short time, but it might make enough of a difference to affect your approval chances or the interest rate you receive.\nThe Bottom Line\n---------------\nBad credit doesn't have to stop you from pursuing a mortgage refinance, especially if you're able to take advantage of a government program through the FHA, USDA or VA.\nBut carefully consider the costs of either a traditional or cash-out refinance once you've received offers. When you refinance, you should be able to enjoy a lower interest rate, monthly payment or a more stable fixed rate, if that was your goal. The costs of refinancing a mortgage with bad credit could offset those savings, so be sure you're clear on the fine print before agreeing to a lender's offer. END
 TITLE: Your Guide to Refinancing a Mortgage With Bad Credit CONTENT: If your credit score falls under the 620 threshold, you may not be able to compare offers from multiple conventional lenders, but you still have options:\n1.  **Apply through your current lender.** Let your mortgage lender know you're interested in a refinance. It might be more likely to work with you to keep your business, and it might be more willing to take into account factors other than credit score. But you'd also be smart to shop around and compare rates from other sources, and let your lender know you're exploring or have received other offers.\n2.  **Choose an FHA refinance option.** The Federal Housing Administration (FHA) provides multiple mortgage refinancing programs for those with lower credit scores. They include:\n*   _FHA streamline refinance_: As its name implies, this process allows you to refinance an FHA loan with less paperwork than a typical refinance, as long as you've made 12 on-time mortgage payments. It will typically result in a lower mortgage payment.\n*   _FHA rate-and-term refinance_: You can refinance a conventional loan into an FHA loan, but you won't be eligible for the streamlined process, and you'll need to supply income and credit verification. You also must be able to demonstrate 12 months of on-time mortgage payments.\n*   _FHA cash-out refinance_: This option allows you to get a new home loan larger than your previous loan, plus cash for the difference. To qualify you'll need at least 20% equity in your home and a history of on-time payments for 12 months—or for the length of the loan term so far, if it's shorter than that.\n4.  **Look into a VA interest rate reduction refinance loan.** If you currently have a home loan from the U.S. Department of Veterans Affairs, known as a VA loan, you can refinance it without undergoing a credit underwriting process or a home appraisal. You could also avoid paying out-of-pocket fees, since they can be rolled into the cost of the loan. The agency recommends comparing rates from multiple lenders before moving forward.\n5.  **Consider a USDA streamline refinance.** Current homeowners with mortgages from the U.S. Department of Agriculture can refinance their USDA loans even if they have no or low equity. Similar to an FHA loan refinance, you're not required to undergo a credit review, but you must show 12 months of on-time payments. You must also meet income eligibility requirements.\n6.  **Apply for a cash-out refinance**: A conventional cash-out refinance is typically easier to get for borrowers with poor or fair credit than a traditional refinance. That's partly because the lender that issues your new loan has the ability to seize your home as collateral if you default on the mortgage. Be wary of closing costs and private mortgage insurance, however, which you may have to pay if your loan is 80% or more of the home's value. These costs could negate or reduce the value of the refinance. END
 TITLE: Your Guide to Refinancing a Mortgage With Bad Credit CONTENT: How to Improve Your Credit to Qualify for a Mortgage Refinance\n--------------------------------------------------------------\nWhen you're considering refinancing a mortgage, there are multiple ways to get your application in the best shape possible—both in terms of your credit score and other factors.\n*   First, it's best if you can demonstrate that you have stable and sufficient income to cover your new mortgage payments. While lenders typically want to see that your debt payments do not exceed 36% of your monthly income, that limit could reach 50% in some circumstances. You may strengthen your candidacy for a refinance by paying down credit card or student loan balances before shopping for a new home loan to reduce your DTI.\n*   Your application will also benefit from your ability to show cash reserves. Experts recommend keeping an emergency fund of at least three to six months of your average expenses. While this can help you stay afloat in a crisis such as job loss, it also proves to lenders that you're able to establish and maintain a savings fund, which can cover mortgage payments in a pinch.\n*   You can also consider adding a cosigner to the refinance application, though it's important to make sure they understand they'll be required to make payments if you can't. The cosigner must also have strong enough credit to boost your approval odds. On the flip side, if you have a cosigner on your current mortgage and their credit score has fallen since you first got the loan, you could remove them and try to qualify for a refinance on your own.\n*   Finally, work on improving your credit, which can only help your chances of refinancing. This includes not only paying down balances, but putting bill payments on autopay so you never miss one. Particularly before applying for a home loan, avoid getting other types of new credit, which could result in a hard inquiry on your credit report. Hard inquiries negatively affect your credit score for a short time, but it might make enough of a difference to affect your approval chances or the interest rate you receive. END
 TITLE: Your Guide to Refinancing a Mortgage With Bad Credit CONTENT: The Bottom Line\n---------------\nBad credit doesn't have to stop you from pursuing a mortgage refinance, especially if you're able to take advantage of a government program through the FHA, USDA or VA.\nBut carefully consider the costs of either a traditional or cash-out refinance once you've received offers. When you refinance, you should be able to enjoy a lower interest rate, monthly payment or a more stable fixed rate, if that was your goal. The costs of refinancing a mortgage with bad credit could offset those savings, so be sure you're clear on the fine print before agreeing to a lender's offer. END
 TITLE: How Will Credit Card Protections and Insurance Change in 2021? CONTENT: Credit Card Travel Protection Trends in 2021\n--------------------------------------------\nCredit cards' travel purchase and insurance benefits may include:\n*   **Auto rental collision damage waiver**: Primary or secondary coverage for when a rental car is damaged or stolen.\n*   **Trip accident insurance**: Offers coverage for when a traveler is killed during a trip or seriously injured, such as losing speech, sight, hearing or a limb.\n*   **Trip cancellation and interruption insurance**: May reimburse you if your trip is cancelled or cut short due to a covered event, such as sickness (which may include the coronavirus) or severe weather.\n*   **Trip delay insurance**: Can cover expenses, including meals, transportation and lodging, if your planned trip is delayed or canceled.\n*   **Baggage delay insurance**: Can reimburse you for necessary purchases, such as clothing and toiletries, while you wait for your bags to arrive.\n*   **Roadside dispatch or assistance**: Could either help connect you with nearby roadside help while you're on the road or help cover the cost of certain services.\nThe coronavirus pandemic upended travel in 2020, and after a flurry of initial claims, some of these benefits lost their value as people stayed at home. However, the vaccine rollout means people may be ready to follow through on their delayed travel plans. END
 TITLE: How Will Credit Card Protections and Insurance Change in 2021? CONTENT: Credit Card Purchase Protection Trends in 2021\n----------------------------------------------\nMost credit cards include zero liability for unauthorized purchase, and many offer additional protections on products you purchase or pay for with your credit card:\n*   **Return protection**: Allows you to return a product and get a refund when the original retailer doesn't accept the return.\n*   **Purchase protection (or purchase security)**: Get reimbursed for products that are damaged, lost or stolen.\n*   **Extended warranties**: Extends the manufacturer's warranty on a product.\n*   **Price protection**: Can cover the difference between your purchase price and a lower advertised price after you make a purchase.\n*   **Cellphone protection**: Reimburses you if your phone is stolen or damaged.\nAll the card benefits have requirements and limits. For example, return and purchase protections usually only last a few months from the purchase date, and there may be per-claim and annual limits. Or, the extended warranty benefit may only apply to purchases when the original manufacturer's warranty was for one or two years.\n\"The benefits that we see the greatest traction on on the retail side are cellphone insurance, purchase security and double warranty,\" Alter says. \"And, to a lesser extent, return protection.\" END
 TITLE: How Will Credit Card Protections and Insurance Change in 2021? CONTENT: New Benefits in 2021 and Beyond\n-------------------------------\nWhile some existing credit card benefits may be taken away or become more valuable, it will also be interesting to see which brand-new benefits you might receive.\nFor example, Alter sees the potential for card issuers to offer more non-insurance benefits, such as telehealth services and tech support for items you purchase. He doesn't have a timeline for when these might happen, however.\nNo matter the specific benefit, you may notice a shift as benefits and insurance providers move to digital platforms that make reviewing and filing claims easier. END
 TITLE: Is Bitcoin Safe? CONTENT: What Are the Risks Associated With Bitcoin?\n-------------------------------------------\nThere are three primary risks associated with buying and owning Bitcoins.\n*   Bitcoin's value may decrease after you buy your Bitcoins.\n*   Someone could get access to your private key and take your Bitcoins.\n*   You could lose your private key that allows you to access your Bitcoins.\nThe first risk is the same risk that's associated with making any type of investment. Whether you're buying stocks, bonds, mutual funds, indexes or lending money, there's a chance that the value of your investment will decrease or the other party won't pay you back. You may even lose your entire investment.\nBitcoin is a particularly volatile investment, meaning the price may quickly move up or down. If you buy Bitcoin and later sell it when its value is higher, you could stand to gain a lot of money. Over the course of the 2020 calendar year, Bitcoin saw a low value of around $3,800 and closed out the year nearing the $30,000 mark, which clearly presents an opportunity for profit to savvy investors. In recent years, however, people have made large Bitcoin investments only to watch the price drop from nearly $20,000 U.S. dollars per Bitcoin to less than $3,500 USD per Bitcoin over a relatively short time—over an 80% drop. If you plan on getting into Bitcoin now, you may want to keep this in mind.\nThe other risks are associated with your private key. Technically, you'll never physically possess Bitcoins—Bitcoin is a digital currency after all. However, a private key is what gives you the ability to spend or transfer Bitcoins, which gives you ownership over the Bitcoins associated with it.\nIf someone gets your private key, they could transfer the Bitcoins into their digital wallet, and you might not have any way to get your money back.\nSome people choose to store their private key on their own rather than using an online wallet. They may do this by writing it down or keeping it on a storage device (like a thumb drive). It's a safe option, particularly if your storage device isn't connected to the internet. However, it opens up the possibility of losing your private key—and there are horror stories of people losing tens of millions of dollars worth of Bitcoin after losing or throwing out storage devices. END
 TITLE: Is Bitcoin Safe? CONTENT: How to Keep Your Bitcoins Safe\n------------------------------\nThe best way to keep your Bitcoins safe is to have your private key stored in a device or app that isn't connected to the internet, or in a non-digital form, such as written on a notepad. When your private key is stored somewhere that isn't connected to the internet, it's called a cold wallet.\nPhysical cold wallets can be kept in fireproof safes or other secure locations. A safe deposit box at a bank could be another option, although those aren't necessarily sure-proof as items could still be lost or damaged. You could also add an additional layer of protection to your cold wallet by encrypting the device. Or, in the case of a written private key, altering a few digits so it won't be usable by others (for example, by changing the first number from a 5 to a 9 and committing that to memory or leaving yourself a hint to the change).\nSome people prefer to keep their Bitcoins in an online digital wallet, particularly if they frequently buy and sell the currency or want easy access to their digital wallet from different devices. Many online cryptocurrency platforms or exchanges will create a wallet for you when you open an account.\nSome platforms will also keep much of the Bitcoins in their system in cold (offline) storage, and only have a small percentage in hot (internet connected) storage for users. Similar to how a local bank branch doesn't have enough cash to cover all its customers' deposits in its vault. As a result, a hack won't necessarily put Bitcoins belonging to all their users at risk.\nBeyond where you store your wallet, the largest risk factor may be the human element. Cryptocurrency scams are on the rise, and fraudsters may try to get you to share your private key or account details. Or get you to install software that infects your devices and can steal this information. END
 TITLE: Is Bitcoin Safe? CONTENT: Additional Things to Know Before Buying Bitcoin\n-----------------------------------------------\nThere are a few more things you should know if you're interested in buying Bitcoin:\n*   **Bitcoin isn't the only cryptocurrency.** Bitcoin was the first major cryptocurrency, and it remains the best known, but you can buy and sell many cryptocurrencies like it. These won't necessarily be more or less safe than Bitcoin, and may be more or less profitable.\n*   **Bitcoin trading accounts might not be insured.** The Securities Investor Protection Corporation (SIPC) insures many brokerage accounts. The SIPC insurance offers up to $500,000 (which includes $250,000 from cash holdings) to customers, protecting them if the company goes under. However, SIPC insurance doesn't cover commodities or currencies, including Bitcoin.\n*   **Diversifying your investments can limit risk.** Putting the majority of your savings into a single investment opens you up to taking a major loss if the investment's value drops. With a volatile investment like Bitcoin, that may be more risk than you want to take on. Investing small amounts among different types of investments, or diversifying your investments, can help you limit your risk. END
 TITLE: Is Bitcoin Safe? CONTENT: Alternatives Ways to Invest\n---------------------------\nIf you're just starting to invest and unsure about your options, be sure to spend time educating yourself before making any major decisions. There are many investment options available and Bitcoin, and cryptocurrencies in general, are relatively new. More traditional investments include:\n*   **Stocks**: Purchasing a stock makes you a partial owner of a company. The value of the stock may rise and fall depending on how well the company is expected to do in the future, which means your investment can grow as the company expands. Additionally, some companies pay dividends to shareholders, giving you a share of their profits.\n*   **Bonds**: A bond is a loan that's given to a corporation or government. As the lender, you can receive interest payments over time and then get back the principal loan amount at the end of the bond's term.\n*   **Mutual funds and exchange-traded funds (ETFs)**: Mutual funds and ETFs allow you to quickly invest in a wide range of stocks, bonds or a combination of the two. They do this by being made up of or mirroring a group of other investments. For example, you can invest in the 500 largest companies in the U.S. stock market by buying shares of an S&P 500 mutual fund. END
 TITLE: Is Bitcoin Safe? CONTENT: How to Monitor Your Credit and Prevent Identity Theft\n-----------------------------------------------------\nLosing your Bitcoin is only one of many potential negative consequences of falling victim to identity theft. While acting cautiously and avoiding theft is ideal, having systems in place to quickly detect potential identity theft may help you respond before too much damage is done.\nExperian offers free credit monitoring with real-time alerts, which could help if someone uses your personal information to try and open a credit account. The subscription-based Experian identity theft and credit protection service go a step further with dark web monitoring. If your information is found online, you can take extra steps to secure your accounts, such as changing passwords or moving your private key to a cold wallet. END
 TITLE: Student Loan Borrowers Get Extended Relief Under New Provisions CONTENT: How Does the Executive Order Impact Student Loan Borrowers?\n-----------------------------------------------------------\nThe executive order signed on January 20, 2021, extends the protections and benefits that the CARES Act put into place in early 2020:\n*   Pauses student loan payments\n*   Pauses collections on defaulted student loans\n*   Temporarily lowers interest rates to 0%\nThese protections were originally set to expire on September 30, 2020, but two extensions had pushed that date to January 31, 2021. President Biden's executive order further extends them through at least January 31, 2022.\nYou don't need to do anything to qualify for the extensions—they're automatic.\nAs was previously the case, the suspended monthly payments could still count toward Public Service Loan Forgiveness (PSLF). However, you do need to meet the other requirements, including working full time at a qualifying employer.\nSuspended payments can also count toward rehabilitating a defaulted student loan, which usually requires making nine on-time monthly payments. Although collection actions have been paused, this could present an opportunity to get your student loans out of default and help prevent collection actions in the future. END
 TITLE: Student Loan Borrowers Get Extended Relief Under New Provisions CONTENT: Some Student Loans Still Don't Qualify\n--------------------------------------\nThe temporary pause on payments, collections and 0% interest rate only applies to student loans that the U.S. The Department of Education owns.\nYou may already know if you qualify, as your loan payments or collection actions would have automatically paused once the CARES Act was enacted last spring.\nBut, as a reminder, the executive order does not impact:\n*   Private student loans you borrowed from a non-governmental lender\n*   Federal Perkins Loans that your school owns\n*   FFEL Program Loans that a private lender owns\nIf you're struggling with student loans that aren't covered by the CARES Act or the extensions, reaching out to your loan servicer may still be the best option. Many private student loan companies have forbearance and hardship options, although they don't necessarily suspend interest accrual as well. END
 TITLE: Student Loan Borrowers Get Extended Relief Under New Provisions CONTENT: Additional Student Loan Action May Be Coming\n--------------------------------------------\nSome people expected the extension, and there's also some speculation about additional student loan-related actions that the president or Congress may take in the coming months. None of these are guaranteed, but based on proposals shared during the Biden campaign, these could include:\n*   Forgiving at least $10,000 of federal student loans.\n*   A new income-based repayment plan that limits payments to 5% of a borrower's discretionary income and offers tax-free forgiveness after 20 years.\n*   Interest-free forbearance on student loans for borrowers making less than $25,000 a year.\n*   An expansion of the PSLF program that offers up to $50,000 in forgiveness after five years. The current program offers unlimited forgiveness but requires 120 monthly payments (or 10 years' worth).\nAs with the CARES Act benefits and extensions, the possible additional provisions may only apply to federal student loans owned by the Education Department. END
 TITLE: Student Loan Borrowers Get Extended Relief Under New Provisions CONTENT: Should You Make Payments if You Can?\n------------------------------------\nBecause federal student loans first went into forbearance with a 0% interest rate, borrowers can make payments if they want. The payments are first applied to interest that has previously accrued or fees (from defaulted loans), and then pays down the loan's principal.\nIn a few cases, it may make sense to make payments.\nFor example, if your loans were in a grace period, deferment or forbearance before March 13, 2020, interest may have accrued before the CARES Act came into effect. As a result, the interest could be capitalized (in other words, added to your loan's principal balance) once payments resume. Your interest rate will then apply to your larger principal balance, which is why it may make sense to pay off at least the accrued interest now.\nAdditionally, if you can afford to make student loan payments, there could be a psychological benefit to paying down your balance—particularly if you're able to completely wipe out a few loans.\nIf your loans are in forbearance and aren't accruing interest, however, there isn't necessarily a financial benefit to paying down the debt.\nDepending on what other debts you hold, it may make more sense to forgo student loan payments and pay down other interest-accruing accounts instead. Or, set the money aside as extra emergency savings—you can make a large student loan payment later if you don't need it in the interim. Additionally, with the potential of student loan forgiveness on the horizon, it may make sense to hold off on making payments if your debt might be forgiven. END
 TITLE: Student Loan Borrowers Get Extended Relief Under New Provisions CONTENT: How Can Student Loan Forbearance Impact Your Credit?\n----------------------------------------------------\nFederal student loans that were in good standing and put into forbearance because of the CARES Act (and subsequent extensions) should be reported to the credit bureaus as though the suspended payments are on-time payments.\nHowever, student loan debt can impact your creditworthiness in other ways. For instance, if you apply for a mortgage or other type of loan, the creditor may consider your outstanding loan amount when reviewing your application. END
 TITLE: Student Loan Borrowers Get Extended Relief Under New Provisions CONTENT: Stay on Top of Future Announcements—and Your Credit\n---------------------------------------------------\nThe Department of Education has a website set up with recent announcements and frequently asked questions about how student loans are being handled in response to the pandemic and accompanying recession. While news outlets generally cover major announcements, you may want to check the site if you need clarification on a specific question. You can also reach out to your loan servicer if you can't find the answer on the site.\nYou can also check your Experian credit report to see the student loans you have in your name and how they are being reported. The free account includes credit report monitoring, with alerts for key changes, and an explanation for the factors that are most impacting your credit score. END
 TITLE: What to Do if You’re Late on a Credit Card Payment CONTENT: Even the most financially responsible people can miss a payment due date. Life may have thrown you a curveball, finances might be temporarily strained or you may have simply forgotten to pay your bill. Whatever the reason, don't beat yourself up about it or let the stress of forgetting to make a payment stop you from taking action. Here's what you can do. END
 TITLE: What to Do if You’re Late on a Credit Card Payment CONTENT: What Happens When You Are Late on a Credit Card Payment?\n--------------------------------------------------------\nIf your credit card payment is late, your issuer might notify you that you have missed your payment due date with a call or email. By that point, you've likely already been charged a late fee and incurred other consequences. The longer you go without remedying the situation, however, the worse the penalties will be. Before you get too worried, keep these things in mind. END
 TITLE: What to Do if You’re Late on a Credit Card Payment CONTENT: How Do Late Credit Card Payments Affect Your Credit?\n----------------------------------------------------\nSince payment history is the most important factor in determining your credit score, late payments can really drag down your scores. With the FICO® Score☉ model, this single metric counts for 35% of your credit score, over a third of the overall calculation. So, anything you can do to make sure that your payment history only has \"on time\" statuses will help you keep your score healthy.\nOnce a late payment is recorded on your credit report, it will remain there for up to seven years, so it is imperative that you try to avoid this at all costs. A late payment's impact on your credit scores can vary, and tends to be more exaggerated for those whose scores are high. Its impact will also be blunted as time goes on, with more recent late payments taking a bigger toll on your credit score than older ones.\nPaying off an account that's been sent to collections might be a wise move to stop calls from debt collectors and improve how lenders view you, but its impact on your credit scores could be moot. END
 TITLE: What to Do if You’re Late on a Credit Card Payment CONTENT: How to Avoid Missing Credit Card Payments\n-----------------------------------------\nSometimes you simply cannot afford your minimum payment due to circumstances beyond your control, such as a changing personal financial situation due to loss of work. However, if your finances are relatively steady, there are a few simple steps you can take to ensure that you do not miss a payment by accident. END
 TITLE: What to Do if You’re Late on a Credit Card Payment CONTENT: You're in Control\n-----------------\nNo matter how financially responsible you are, it can be very easy to miss a payment due date. But before you panic, assess the situation and make at least the minimum payment required on your account as soon as possible. You might then try calling your issuer and asking if they will waive the late fee or undo any penalty APR interest they might have imposed on your account.\nBy paying within 30 days of the missed due date, you should be able to avoid having a late payment noted on your credit report or doing any significant damage to your credit score. If you want to learn what's on your credit report, get a free copy through Experian. You can also check your scores for free and sign up for free credit monitoring. Careful credit management and making on-time payments reliably can help your credit scores improve over time. END
 TITLE: What Type of Rewards Card Is Best During Recession? CONTENT: Rewards Credit Cards to Consider During a Recession\n---------------------------------------------------\nCredit cards can carry significant risk, especially if you spend more than you can afford to pay off every month. But in the right situation, using a rewards credit card during a recession can provide some significant benefits. In some cases, it could even be a game-changer. END
 TITLE: What Type of Rewards Card Is Best During Recession? CONTENT: Picking the Right Card for You\n------------------------------\nWith so many different types of credit cards out there, it's important to know your situation, goals and preferences before you decide which one to choose.\nFor starters, consider what you want to do with a credit card. If you're having trouble making ends meet, for instance, a 0% intro APR credit card can give you some time to make interest-free purchases while you get your finances in order. If you have high-interest credit card debt, a balance transfer card may be an ideal choice to help you save money.\nIf, however, you're not struggling financially right now, it may be best to search for a card that offers the best rewards based on your spending habits.\nIt's also important to know where your credit stands before you apply for a card. The best rewards credit cards typically require good or excellent credit. Your choices may be limited if you have bad or fair credit, but there are still options.\nExperian's credit monitoring tool can help you by providing free access to your FICO® Score☉ and your Experian credit report. With this information, you'll have an idea of what your credit profile looks like and also get some ideas of where you can improve.\nYou can also use Experian CreditMatch™ to get an idea of which cards you're prequalified for based on your credit profile.\nAs you take these steps, you'll be in a better position to choose the right credit card for you and your needs. END
 TITLE: Should I Invest My Emergency Fund? CONTENT: Is It a Good Idea to Invest Your Emergency Fund?\n------------------------------------------------\nIn most cases, it's not a good idea to invest money you might need in the short term. The biggest reason for this is market volatility.\nThe stock market has a long-term average annual return of around 10%, but in the short term, it can be extremely volatile. That's not a good thing if you don't know when you'll need to use the money in your emergency fund. If your investments are down when you experience an emergency, you'll have less money to cover the expenses.\nLiquidity is another issue you may run into if you invest your emergency fund in the market. The liquidity of an asset essentially means how quickly you can convert it to cash. While you can quickly sell most investments, it can take a few days for the broker to settle the transaction and make the cash available to you in your brokerage account. From there, you'll need to transfer the money to your bank account, which can take another few days.\nIf you need the money now, though, you may end up having to borrow to get by until you have the cash in hand.\nBecause of the stock market's high risk and lower volatility, it's generally not recommended to invest your emergency fund money, even though the alternatives aren't as lucrative. END
 TITLE: Should I Invest My Emergency Fund? CONTENT: How Much Should I Have in My Emergency Fund?\n--------------------------------------------\nFinancial experts recommend having three to six months' worth of basic living expenses in your emergency fund. That way, you'll have enough stashed away for even the most devastating financial hardships, including a short-term disability or job loss.\nHowever, rules of thumb are more like guidelines than actual rules, so it's important to consider your own financial situation and risk tolerance to determine the right figure for you—and that may be more or less than the suggested amount.\nAsk yourself how much you'd need to have in your rainy day fund to help you sleep better at night. If you have dependents counting on your income, a home mortgage to keep up on and a high number of monthly expenses, it may take more to rest easy than if you have fewer obligations. END
 TITLE: Should I Invest My Emergency Fund? CONTENT: Safer Places to Keep Your Emergency Fund\n----------------------------------------\nBecause it's hard to know when you might need the cash, safety and liquidity are typically the two top concerns with an emergency fund. Here are some places you can keep your emergency fund without worrying about losing money in the market:\n*   **High-yield savings account**: High-yield savings accounts function the same as traditional savings accounts but typically offer a much higher interest rate. This rate isn't enough to beat inflation, however, which means your money will lose some value over time in terms of buying power. But the safety and liquidity a savings account provides are tough to beat.\n*   **Money market account**: Money market accounts act as a sort of hybrid of a checking and savings account. They typically offer higher interest rates, which are usually on par or slightly better than high-yield savings account rates, but they also give you even easier access to your money via checks, a debit card or ATM withdrawals. But like high-yield savings accounts, the interest rates aren't going to wow you.\n*   **Certificates of deposit**: Called CDs for short, certificates of deposit can offer even higher interest rates than the other two options, but with a catch: You have to lock your money up for a set amount of time, which you'll choose before you open the account. The longer the maturity of the CD, the higher your rate will be. This can be a nice way to earn more money on your cash, but you may face penalties if you withdraw before your account matures. END
 TITLE: Should I Invest My Emergency Fund? CONTENT: How to Build Up Your Emergency Fund\n-----------------------------------\nAchieving a maxed-out emergency fund can be challenging for many people, and it may be a years-long effort. Here are some ways you can maximize your efforts:\n*   **Set and stick to a realistic budget.** If you don't already have one, take some time to make a budget for your monthly expenses. Categorize your expenses from the past few months to get an idea of where your money is going, and look for ways to cut back so you can divert that cash flow to savings instead.\n*   **Establish and automate savings.** Instead of making it a goal to save whatever is left over at the end of the month, include your monthly savings in your budget. Then set up automatic transfers from your checking account to your savings or money market account to ensure your budgeted savings don't get eaten up by other expenses.\n*   **Find ways to bring in more income.** Earning more money than you already are may not be possible. But if you can, consider taking on extra hours at work, taking on a second job, starting a side hustle or finding small gigs online that allow you to earn extra cash from home. You can then use this money specifically to build up your emergency fund.\n*   **Use windfalls.** If you get a tax refund every year or regular bonuses at work, you may consider stashing at least some of the cash in your emergency fund. END
 TITLE: Should I Invest My Emergency Fund? CONTENT: Build Your Credit to Save More\n------------------------------\nOne way to cut back on expenses is to avoid high-interest debt like credit cards, which can eat into your ability to save.\nWhat's more, having a good credit score will help you qualify for lower interest rates on other forms of debt, which can make room for more emergency savings. It can also help you qualify for lower insurance rates.\nCheck your credit score to get an idea of the health of your credit history, then take steps to improve your credit to maximize your savings. END
 TITLE: How to Start Investing in Real Estate CONTENT: The Different Types of Real Estate Investments\n----------------------------------------------\nDepending on your goals, how much you have to invest and how hands-on you want to be with your portfolio, there are several different types of real estate investments from which you can choose:\n*   **Residential real estate**: With this option, you can buy any type of residential property and make money by collecting rent from tenants. You can also opt to sell the property down the road to get the equity you've built up over time. Another form of residential real estate is fixing-and-flipping. With this approach, you purchase properties in poor condition at a steep discount, spend money to fix them up, then sell them for a profit—all typically within a year.\n*   **Commercial real estate**: This option is similar to residential real estate but involves buying buildings that house one or more businesses. As a landlord, you'll collect rent from the tenants as they operate their businesses.\n*   **Raw land**: Investors with a lot of capital may choose to invest in raw land, or empty lots where they or someone else may want to build residential or commercial properties in the future.\n*   **Real estate investment trusts**: Called REITs for short, these publicly traded companies own real estate portfolios, and you can purchase stock in them. REITs must return 90% of their taxable income to shareholders each year, so they can be a great way to earn dividend income. They also allow you to take advantage of the benefits of real estate investing without actually owning any property.\n*   **Crowdfunding platforms**: These investment platforms allow investors to invest in real estate properties in a way that's usually reserved for wealthy individuals. You essentially pool your money with investors around the world to purchase real estate, then earn a return based on your investment. END
 TITLE: How to Start Investing in Real Estate CONTENT: Does It Cost a Lot to Invest in Real Estate?\n--------------------------------------------\nThe capital required to invest in real estate can vary depending on your approach. For example, if you want to invest in a REIT (the least expensive option), you just need enough money to buy one share.\nCrowdfunding platforms are generally the second least expensive option, but platforms like Fundrise and Realty Mogul have minimum beginning investments of $500 and $1,000, respectively.\nIf you're thinking of purchasing raw land or properties, you'll typically need at least enough money for a down payment and funds to cover the mortgage and maintenance costs in the beginning. There are a variety of financing options available, and down payment requirements can depend on the lender, your credit situation, the type of property you're buying and the purchase price. END
 TITLE: How to Start Investing in Real Estate CONTENT: What Are the Risks of Real Estate?\n----------------------------------\nLike any investment, real estate investing comes with risk. Because most forms of real estate investing are not directly tied to the stock market, the risks are typically different. Here are some to know about.\n*   **Unpredictability**: Like the stock market, the real estate market is unpredictable. While properties may appreciate well over a handful of years, there's no guarantee that growth will continue. If the real estate market crashes after you buy property, you could be stuck with a house that's way overvalued.\n*   **Poor locations**: Location is crucial in real estate investing. If you're buying residential property to lease, you want to buy in an area where people want to live, preferably for the long term. And if you're investing in commercial real estate, you want to avoid areas where there's historically been a lot of business turnover.\n*   **Bad renters**: There are a lot of things you can do to try to weed out bad renters, such as checking credit scores and calling previous landlords. But that's not a guarantee that you won't get stuck with a renter who pays late or damages your property.\n*   **Vacancies**: The idea of getting consistent rent payments every month is nice, but it's unlikely to happen. As long as you buy in a good location where the demand is high, you may not need to worry as much about regular vacancies. But even in good areas, a bad market could make it challenging to find renters consistently.\n*   **Negative cash flow**: Buying real estate comes with a lot of ongoing costs, including mortgage payments, property taxes, insurance, repairs and maintenance. If you end up receiving less in rent payments than you're shelling out for these costs every month, you could lose thousands of dollars every year. Make sure you account for every cost to try to avoid or reduce any losses.\n*   **Lack of liquidity**: While real estate may generally have less volatility than the stock market, there is one big disadvantage. That disadvantage is the lack of liquidity. If you need money now, you'll need to either sell the property or take out a home equity loan or line of credit—both of those approaches can take several weeks. With the stock market, you simply sell your shares, and you can have the money in your bank account within a few days, assuming you've made a gain on your investment. END
 TITLE: How to Start Investing in Real Estate CONTENT: Where Do You Start?\n-------------------\nReal estate can be quite a bit more complicated than simply putting a few hundred dollars into a stock you're excited about. While it's relatively easy to invest via REITs and crowdfunding platforms, buying actual properties or land can take weeks and even months of research.\nStart by educating yourself about the process using real estate investing resources like BiggerPockets and Roofstock. You can learn a lot on these websites about how to develop an investment strategy, how to account for taxes, how to calculate the return on investment on a property and more.\nIf you plan to purchase properties, you'll also want to enlist the help of a real estate agent who can help you find the types of properties you're looking for in or outside your area. You may also consider joining forums and groups on social media that are dedicated to real estate investing, so you can ask questions as you learn and start making your first investments. Also check with your bank to determine whether you're likely to qualify for a mortgage for your investment (assuming you're not paying cash).\nLearning about real estate investing can be a steep learning curve, but over time, the efforts can pay off. END
 TITLE: How to Start Investing in Real Estate CONTENT: Does Real Estate Investing Affect Your Credit?\n----------------------------------------------\nIf you're buying into a REIT or crowdfunding platform, your credit history won't come into the picture at all. However, if you're taking out a loan to finance the purchase of a property or land, your credit will be a significant factor in whether you'll be able to get the financing needed to make your investment. In addition, making the investment can impact your credit history and credit score.\nIt can especially hurt your credit if you overextend yourself financially and have a difficult time paying all of your bills. Even one missed payment can have a significant impact on your credit score. If you purchase property and have problems renting it out, you could end up defaulting on the loan and having your property foreclosed on, which will cause years of damage to your credit. As a result, it's important to wait until you have enough cash flow and savings to weather the risks associated with real estate investing.\nIt's also crucial to build a good credit history before you begin investing to make it easier to qualify for lower interest rates on your loans, potentially saving you thousands or even tens of thousands of dollars over the time you own the property. Check your credit regularly to keep track of your progress and to spot potential issues you can address before they wreak havoc on your credit score. END
 TITLE: Can You Get a Personal Loan to Start a Business? CONTENT: Personal loans are among the most versatile forms of credit available. While some lenders do restrict how you can use your funds—including for starting a business—there are others that don't include business purposes on their exclusion list.\nLenders may state on their website whether they allow borrowers to use loan funds to start a business. If you can't find that information, it's best to carefully look through your loan agreement and be honest about your intentions on any forms you fill out.\nIf you're still unsure, contact the lender to let them know what you plan to use the money for and ask if it's allowable under their terms and conditions. The lender may prohibit borrowers from using their loans for business purposes and could require immediate debt repayment if it's determined you did it anyway. END
 TITLE: Can You Get a Personal Loan to Start a Business? CONTENT: Where to Get a Personal Loan to Start Your Business\n---------------------------------------------------\nYou can get a personal loan through several types of lenders. Regardless of the loan's source, however, it's important to keep in mind that personal loan interest rates can vary depending on your creditworthiness.\nIf you have excellent credit, you may be able to qualify for a loan with an interest rate in the low single digits. But if your credit is fair or poor, you may have a hard time qualifying for a rate under 30%.\nAs a result, it's crucial that you take some time to shop around and compare offers. Using Experian CreditMatch™, you can get matched to personalized loan offers from multiple lenders in one place based on your credit profile.\nIn addition to that, here are some general places you can look:\n*   **Traditional banks**: Some big banks such as Bank of America and Chase don't offer personal loans. But others, including Citi, Discover and Wells Fargo, do. Additionally, many community banks offer them. If you bank with an institution that offers personal loans, check to see if you can get a good offer based on your relationship with the bank.\n*   **Credit unions**: Credit unions generally offer better terms than banks because they're not-for-profit organizations owned by their members. Instead of returning profits to third-party shareholders, they funnel that money into offering better loan terms, including lower fees and interest rates. That's no guarantee you'll get the best rate, but if you're a member of a credit union, it's a good idea to check to see what's available.\n*   **Online lenders**: Some of the best personal loan offers come from online lenders, which include traditional banks, online lending platforms owned by banks, and other lenders that don't offer traditional banking products. What's more, many of these lenders allow you to get prequalified before you apply. This process doesn't impact your credit and makes it possible for you to more easily compare rates to find the best option for you. END
 TITLE: Can You Get a Personal Loan to Start a Business? CONTENT: How Much Can You Get in a Personal Loan to Start Your Business?\n---------------------------------------------------------------\nPersonal loan amounts can vary depending on a few different factors, including by lender. Depending on where you look, you may be able to get as little as a few hundred dollars up to $100,000.\nThat doesn't necessarily mean you can borrow up to the maximum amount, though. Lenders will review your credit history, income and other debts to determine how much they're willing to lend to you. For example, if you have a relatively low credit score or a high debt-to-income ratio, you may be limited on how much you can borrow.\nFortunately, if you're working with lenders that offer prequalification, you can usually find out what you qualify for during that risk-free process. END
 TITLE: Can You Get a Personal Loan to Start a Business? CONTENT: The Pros and Cons of Using a Personal Loan to Start a Business\n--------------------------------------------------------------\nPersonal loans can be a good way to get the funding you need for your business, but there are some potential pitfalls to watch out for. Here are some benefits and drawbacks to keep in mind. END
 TITLE: Can You Get a Personal Loan to Start a Business? CONTENT: Alternatives to Using a Personal Loan to Start a Business\n---------------------------------------------------------\nDepending on your situation and goals, here are some other ways you may be able to fund your new business idea:\n*   **Business credit card**: Business credit cards offer a revolving line of credit you can use over and over again. Some even provide an introductory 0% APR promotion, so you can take time to pay off startup costs without interest. Plus, you may be able to earn rewards and enjoy other perks. However, interest rates can be upwards of 20%, depending on your credit.\n*   **SBA microloan**: The SBA microloan program offers loans up to $50,000 and is specifically designed for startups and expansion. Of course, lenders can set their own eligibility criteria, so you may still need to meet requirements for time in business and revenues to get approved.\n*   **Nonprofit microloan**: Microlending platforms like Kiva offer small loans with low or even 0% interest rates. The catch is that you need to get people in your community, such as friends and family, to fund a small portion of the loan.\n*   **Crowdfunding platforms**: If you're developing a product, consider using websites like Kickstarter and Indiegogo to get initial funding for your business plan. Instead of paying the money back, you'll give funders early access to your product. END
 TITLE: Can You Get a Personal Loan to Start a Business? CONTENT: Get Your Credit Ready for Business Financing\n--------------------------------------------\nBefore you start the process of seeking funding for your business, check your credit score to see where you stand. If it could use some improvement, take some time to address the items that are harming your credit profile and work to increase your credit score before you apply.\nThe higher you can get your credit score, the more options you'll have and the more affordable the interest rate will be. END
 TITLE: How to Get Student Loan Relief During the COVID-19 Crisis CONTENT: How the CARES Act Helps Federal Loan Borrowers\n----------------------------------------------\nSigned into law in late March 2020, the Coronavirus Aid, Relief and Economic Security (CARES) Act provided roughly $2.2 trillion in relief for people and businesses that have been affected by the COVID-19 crisis.\nFor many student loan borrowers, that relief comes in the form of suspended payments through September 30, 2021. To qualify, you need to have direct loans or Federal Family Education Loans (FFELs) that are held by the federal government.\nIf your loans are eligible, the benefit occurs automatically—no need to reach out to your loan servicer to opt in. As part of the stimulus package for federal student loan borrowers:\n*   Involuntary collections of student loan debt, including wage garnishments, Social Security garnishments and tax refund offsets, are suspended.\n*   Interest will not accrue during the suspension period.\n*   If you're on an income-driven repayment plan or working toward Public Service Loan Forgiveness, your suspended payments will count toward the requirements of those programs.\n*   Suspended payments will be reported to the national credit bureaus as though they were on-time payments.\nUnfortunately, the stimulus package excludes roughly 12% of federal student loans, according to the Institute of College Access & Success. These exclusions include Perkins loans (which are campus-based) and older FFEL loans held by commercial lenders. In addition, it doesn't include private student loans, which make up almost 8% of all student loan debt in the U.S., according to data and analytics firm MeasureOne. END
 TITLE: How to Get Student Loan Relief During the COVID-19 Crisis CONTENT: How Employers Can Help With Student Loans\n-----------------------------------------\nEight percent of organizations in the U.S. offer some form of student loan repayment assistance, says the Society for Human Resource Management. If you work for one of those companies, you may already be receiving assistance with paying down your debt.\nIf you're not, now may be a good time to speak with your human resources department. Employers already receive a tax break for offering tuition assistance to their employees—they can contribute up to $5,250 annually on a tax-free basis.\nThe CARES Act extended that tax break to student loan repayment assistance through the end of 2025. In other words, your employer can help make up to $5,250 in payments toward your student loans per year, and it will be tax-free for both of you.\nJust keep in mind that the $5,250 limit is shared between tuition reimbursement and student loan repayment assistance, so if you're taking advantage of both, there are some limitations. END
 TITLE: How to Get Student Loan Relief During the COVID-19 Crisis CONTENT: How Your Lenders Can Help With Your Student Loans\n-------------------------------------------------\nIf you have student loans that don't qualify for payment suspension under the CARES Act, you may be able to get some help from your lender. Many private lenders offer forbearance plans that can pause your student loan payments for a predetermined period of time.\nUnlike the CARES Act suspension, forbearance with a private lender won't stop interest from accruing. However, it may still be worth it to pay a little more later in exchange for financial relief right now. Some may be providing special forbearance policies for the current situation. Call your lender to find out what options are available to you. END
 TITLE: How to Get Student Loan Relief During the COVID-19 Crisis CONTENT: Can Refinancing Your Student Loans Help?\n----------------------------------------\nRefinancing your student loans can have a significant impact on your repayment plan, and if you qualify, you could be able to score a lower interest rate, monthly payment or both.\nDuring the coronavirus crisis, refinancing can also make it possible to switch to a lender that has more generous forbearance options than what your current lender offers.\nJust keep in mind that if you refinance federal student loans with a private lender, you'll lose all the benefits that the Department of Education provides, including payment suspension under the CARES Act.\nAlso, refinancing student loans typically requires you to have a stellar credit history and a solid income source. If you aren't eligible on your own, you may be able to improve your chances by applying with a cosigner. Take some time to run the numbers to determine whether refinancing is right for you. END
 TITLE: How to Get Student Loan Relief During the COVID-19 Crisis CONTENT: Should You Get on an Income-Driven Repayment Plan?\n--------------------------------------------------\nIf you have federal student loans, you don't have to worry about making any payments until the end of September 2021. But if you anticipate the COVID-19 pandemic will have a lasting impact on your financial situation, it may make sense to apply for an income-driven repayment plan.\nIncome-driven repayment plans reduce your monthly payment to a percentage—usually 10% to 20%, depending on the plan—of your discretionary income. They also extend your repayment term to 20 or 25 years. Once you've completed your repayment plan (which includes the suspended payments for the next handful of months), the remaining balance will be forgiven.\nBefore you apply for an income-driven repayment plan, it's important to note that while your payment can be lower right now, especially if you've lost some income, you have to recertify your income every year. That means that your payments can go up—and with some plans, they can even exceed your current monthly payment amount.\nAlso, while these plans will reduce your monthly payment, you'll pay more in interest over the life of your loans, and you'll be indebted for at least twice as long since 10 years is the normal federal student loan term. If the idea of having your remaining balance forgiven after 20 or 25 years is appealing, know that that amount will be considered taxable income, which can result in a big tax bill.\nSo again, take your time to consider your options. Because you don't have to worry about payments for a while, getting on an income-driven repayment plan only makes sense if it's the right move for the long run to prevent default. END
 TITLE: How to Get Student Loan Relief During the COVID-19 Crisis CONTENT: Should You Take Action Now?\n---------------------------\nIf you haven't been affected financially by the COVID-19 pandemic, you may wonder if you even need to take any steps to get help with your student loans.\nWithout knowing how long the U.S. economy will be affected by the crisis and how it could impact you in future months, it may be tempting to request help now as a way to prepare for potential financial hardship later. You could set aside the money you're not paying on your loans in savings, and pay it all toward your loans later if you don't need the money after all. However, if you're able to, it's probably best to continue making loan payments.\nOf course, some private lenders may not offer forbearance unless you're experiencing economic need right now. Consider your situation, and determine what is the right move for you. END
 TITLE: What Are Fractional Shares? CONTENT: How Do Fractional Shares Work?\n------------------------------\nA fractional share is essentially a slice of a company's stock or an exchange-traded fund (ETF). For example, let's say you want to invest in Apple stock but the price of one share is $135 and you only have $75. In this scenario, you can purchase 0.56 shares of Apple with the money you have.\nFractional shares participate in both gains and losses just like normal shares, but in terms of real dollars, the impact is less.\nIf Apple stock jumps 10%, for instance, someone who owns a full share will see their position grow to $148.50, a jump of $13.50. If you only have $75 worth of the stock, you'll still get a 10% return, but the dollar value will be $7.50, bumping your position to $82.50.\nIn addition to purchasing a fraction of a share or ETF, there are other ways to get fractional shares:\n*   **Dividend reinvestment plans**: Called DRIPs for short, these plans allow you to reinvest dividends you earn on your stocks to buy fractional shares instead of taking the dividends as cash.\n*   **Mergers and acquisitions**: When one company acquires another, the common stock of each company is often combined at a certain ratio. The math doesn't always work out to give shareholders an even number of shares, though, resulting in fractional shares.\n*   **Stock splits**: A stock split occurs when a company increases its number of shares, which, in turn, decreases the value of each individual share. For example, if you have three shares of Apple stock with a $150 share price and the company does a 4-to-1 split, you'll now have 12 shares at a price of $37.50 per share. But as with mergers and acquisitions, the math doesn't always work out to give an even number of shares, so you may end up with fractional ownership. END
 TITLE: What Are Fractional Shares? CONTENT: What Are the Benefits of Fractional Shares?\n-------------------------------------------\nFractional shares have become increasingly popular among brokers and investors, and there are good reasons for it:\n*   **They help level the playing field.** Fractional shares have created opportunities for many people who were unable to invest in the past. They allow beginners and even experienced investors to purchase ownership in companies they wouldn't otherwise be able to invest in because of a high stock price.\n*   **They offer increased diversification.** When you don't have a big investment account balance, it can be difficult to diversify your stocks without purchasing an index fund. But with fractional shares, you have more power to diversify because you're investing in companies based on a dollar value instead of the number of shares.\n*   **It makes it easier to dollar cost average.** Dollar cost averaging is an investment strategy in which you invest the same dollar amount at regular intervals regardless of how a stock or fund is performing. Because fractional shares are based on dollar amounts, they're perfect for this approach. END
 TITLE: What Are Fractional Shares? CONTENT: Who Offers Fractional Shares?\n-----------------------------\nSeveral brokers allow investors to invest in stocks, ETFs or both via fractional shares. Here's a list of some popular options:\n*   Robinhood\n*   SoFi\n*   M1 Finance\n*   Stash\n*   Public\n*   Fidelity\n*   Charles Schwab\n*   Interactive Brokers\nIn most cases, you can buy fractional shares with as little as $1, but Stash and Charles Schwab both have a $5 minimum. Also, Charles Schwab is the only one that doesn't allow you to purchase fractional shares in ETFs. END
 TITLE: What Are Fractional Shares? CONTENT: What to Know Before You Invest in Fractional Shares\n---------------------------------------------------\nFractional shares make it easier for more people to invest in the companies they like. But they also make it easier to justify trading recklessly, especially among new investors who don't yet have a settled investment strategy.\nAs a result, it's crucial that you take some time to learn about the risks that come with investing generally and try to develop a strategy for how you want to approach trading.\nAlso, some brokers still charge commissions every time you trade, and because people are often buying fractional shares because they have less money, these fees may represent a large percentage of your portfolio value.\nBefore you open a brokerage account, shop around and compare several options to find out which ones charge trading fees, the types of fractional shares they offer and how to manage your risks well. END
 TITLE: What Are Fractional Shares? CONTENT: Build a Financial Foundation Before You Start to Invest\n-------------------------------------------------------\nInvesting may sound more exciting than budgeting and saving, but because of the risks involved with the stock market, it's critical that you establish a solid foundation for your finances.\nThis includes establishing an emergency fund, having the right types and amounts of insurance coverage, saving for retirement, checking your credit score regularly and paying down high-interest debt.\nThis doesn't mean you can't invest at all until you've mastered other areas of your finances. But resist the urge to pour all of your money into fractional shares to try to maximize your gains. If the stock market experiences a downturn, you could end up losing money that you actually need to get by. END
 TITLE: Can I Buy a Car Without a Driver’s License? CONTENT: Why Would You Need to Buy a Car Without a License?\n--------------------------------------------------\nYou can't legally operate a vehicle without a driver's license, so why might you still want to move forward with a purchase? There are several reasons, including:\n*   You're buying the car as a gift to someone else.\n*   You're learning to drive and haven't yet qualified for a full license.\n*   You hire someone to drive you around.\n*   You're purchasing a car for a teenager who can't legally get a loan for the car.\n*   You're disabled and need a vehicle for your caregiver.\n*   You want to purchase a collectible car and don't plan to drive it.\n*   You're a business owner and need a vehicle for your employees to drive.\nWhatever your reason for purchasing a vehicle, it's important to understand the potential roadblocks you may run into during the process. END
 TITLE: Can I Buy a Car Without a Driver’s License? CONTENT: Can You Legally Buy a Car Without a License?\n--------------------------------------------\nIn the U.S., there is no law that requires you to have a driver's license to buy a car. However, there are aspects of the process before and after the purchase that could prove challenging to someone without a license. END
 TITLE: Can I Buy a Car Without a Driver’s License? CONTENT: There are a few different ways you can buy a car and do (basically) everything else car ownership entails without having a driver's license. Your options include:\n*   Naming someone who is licensed as the co-owner for the purposes of insurance, financing and registration.\n*   Listing a licensed member of your household as the primary driver on the insurance policy.\n*   Shopping around for auto loans to find lenders who don't require a license.\n*   Having a strong credit history to eliminate other risks for the lender.\n*   Work with an insurance agent who can help you find an insurer that will work with unlicensed owners. END
 TITLE: Can I Buy a Car Without a Driver’s License? CONTENT: Alternatives to Buying a Car When You Don't Have a License\n----------------------------------------------------------\nThere are many reasons someone may not have a driver's license. Depending on your situation, here are some potential alternatives to buying that car:\n*   **Rideshare services**: If you just need to get around occasionally, consider using a rideshare service like Uber or Lyft to get to where you need to go.\n*   **Public transportation**: Depending on the state of public transportation in your city, this could be an excellent option, not to mention a cheaper one. However, this alternative may not be possible if you live in a rural or suburban area.\n*   **Bike**: Riding a bicycle can be another way to get to where you need to go.\n*   **Get a license**: If you plan to drive the vehicle at all, you're legally required to have a driver's license. Even if you don't, getting your license can solve a lot of problems, especially if you can't take advantage of any of the options above. END
 TITLE: Can I Buy a Car Without a Driver’s License? CONTENT: Keep Your Credit in Good Shape to Maximize Savings\n--------------------------------------------------\nEstablishing and maintaining good credit is key to saving money during the car-buying process. Not only will it make it easier to qualify for a loan with a favorable interest rate, but it can also lead to a lower auto insurance rate in many states. What's more, maintaining good credit will also help you get approved for affordable financing for other purposes in the future.\nBuilding credit can take time, especially if you have negative items on your credit reports. Start by checking your credit score to see where you stand. Also, get a copy of your credit report to review areas you may need to address. There are many ways to improve credit, but some of the most impactful methods include paying your bills on time and getting caught up on past-due payments and paying down your credit card balances. END
 TITLE: What to Consider Before Investing in Stocks CONTENT: When Is It a Good Idea to Invest in Stocks?\n-------------------------------------------\nThe right decision about whether it's a good idea to buy individual stocks depends on your financial situation. Because of the volatility of the the stock market, there are some things you'll want to take care of before you start investing:\n*   **Emergency savings**: If the market experiences a downturn and your portfolio loses a significant of its value, you can't get that money back, at least not immediately. As such, it's a good idea to have a robust emergency fund before you start investing, just in case the downturn coincides with a financial emergency, such as a job loss.\n*   **Budget**: Managing your expenses well is a key element in any successful financial plan. As long as you have a budget in place and you're spending less than you earn, you may be able to use some of the remaining funds to invest in the market.\n*   **Debt**: There's nothing wrong with investing while you have debt. But if you have high-interest credit card debt, you'll be better off paying that down first. This is because credit cards typically charge higher interest rates than the value of the average return you can get in the stock market.\n*   **Long-term savings**: Investing in individual stocks at the expense of your retirement may come back to haunt you. Retirement savings accounts offer tax advantages you can't get with a traditional brokerage account, and neglecting your long-term savings can put you in a position later in life where you have to save more to catch up.\nStock market basics tell you it's always a good idea to buy low and sell high. If the economy is in a recession there may be more market volatility than usual, which can present opportunity, but chances for a large return are higher than when the market is doing well.\nIf you do plan to invest, consider the buy-and-hold strategy. It may be tempting to trade stocks regularly to try to capture big short-term gains. But as a so-called retail investor, fees and other factors put you at a disadvantage compared with investment banking firms, and you could end up losing money if you're always chasing the next big thing.\nIf you buy and hold a stock, you'll still be subject to short-term fluctuations in its price, but the likelihood of the value going up in the long run may be higher. END
 TITLE: What to Consider Before Investing in Stocks CONTENT: What Are the Risks of Investing in Stocks?\n------------------------------------------\nInvesting in individual stocks can be exciting, but it's important to understand the risks associated with the practice:\n*   **Requires time and effort**: Unless you're using a buy-and-hold strategy, you may spend a lot of time monitoring your portfolio and trying to buy and sell at the right times.\n*   **Less diversity**: If you focus your investments on only one industry, your portfolio will take a big hit if that industry experiences a major downturn. Diversifying your portfolio helps mitigate some of this risk by including stocks from different sectors and potentially including other assets, such as bonds, that carry lower risk. Mutual funds are often considered the gold standard of diversification.\n*   **Difficult to keep emotions at bay**: Watching a stock's price fluctuate can cause you to feel excited and scared. These emotions can trigger impulsive investment decisions, such as selling when the price goes down to avoid losses or buying when it's on the rise trying to capitalize on an upswing. Successful investors have strategies in place to avoid making emotional decisions, but it can be difficult to do that when you're just starting out.\nInvesting in stocks is best for people who have a high risk tolerance—this means you're not bothered by short-term volatility. Make sure you understand how you view risk before you start investing.\nAlso, consider your timeline. The stock market is best for people who don't need the money they're investing anytime soon. If you're looking for somewhere to stash your emergency fund or cash for a down payment on a home, keep it in a high-yield savings account or another type of account instead. END
 TITLE: What to Consider Before Investing in Stocks CONTENT: How to Lower Investment Risk\n----------------------------\nEveryone who invests in the stock market is exposed to risk. However, there are some steps you can take to avoid more risk than is necessary for your situation:\n*   **Consider a financial advisor.** A financial advisor can help you by providing expert guidance and also by acting as a buffer between your portfolio and your emotions. Keep in mind, though, that financial advisors charge for their services, and those fees can eat into your return. It's best to consider this option only if you have a large portfolio to manage and can easily afford the fees.\n*   **Diversify your stock portfolio.** Take some time to learn about how you can diversify your stock portfolio. For example, tech stocks typically provide a higher return potential than stocks in the defense sector, but they also carry higher risk. Investing in both sectors can diversify your portfolio a little and mitigate some of those risks. The more you can diversify your investments, the less risk you'll experience.\n*   **Utilize a robo-advisor.** Robo-advisors use algorithms to invest in the stock market on your behalf, and they're typically much cheaper than working with a human advisor. That said, robo-advisors typically don't let you choose your investments, and you won't be able to buy individual stocks.\n*   **Use dollar cost averaging.** The concept of dollar cost averaging involves investing the same dollar amount in regular intervals—typically monthly—regardless of how the price of the stock has changed. This approach can help reduce the impact of volatility on your investment. END
 TITLE: What to Consider Before Investing in Stocks CONTENT: Where to Buy Stocks\n-------------------\nYou can purchase stocks by opening an account with one of many brokerage firms. That includes companies like:\n*   Fidelity\n*   Vanguard\n*   Charles Schwab\n*   Merrill Edge\n*   Robinhood\n*   Webull\n*   E-Trade\nThese are only a few examples of brokers you can work with to buy stocks. Before you choose a brokerage, it's a good idea to compare features from each, such as fees, resources, education, investment options and more.\nOnce you pick a brokerage firm, you can buy stocks by transferring cash to the brokerage account, then choosing the stock and how many shares you want to purchase. END
 TITLE: What to Consider Before Investing in Stocks CONTENT: Alternative Ways to Invest Your Money\n-------------------------------------\nWhile buying individual stocks can be one way to grow your money, it's far from the only way to do it. Here are some options to look into if you want to start investing:\n*   **Mutual funds**: Mutual funds pool money from multiple investors to invest in various securities, which are dictated by the fund itself. For example, some funds follow certain indexes, such as the S&P 500, while others may invest in a mix of stocks, bonds, real estate and other securities. Mutual funds are great for diversification, but they don't allow you to control how your money is invested.\n*   **Exchange-traded funds (ETFs)**: These are similar to mutual funds but offer some key differences. For starters, ETFs trade on stock exchanges, which means you'll get real-time pricing and lower minimums—some brokers even allow you to buy into them with fractional shares. But like mutual funds, you have little control over how an ETF is managed or which securities it invests in.\n*   **Real estate investment trusts (REITs)**: REITs allow you to invest in income-producing properties without needing the funds to buy them directly or manage them. REITs can generate a steady stream of dividend income and can help you diversify your portfolio beyond the stock market. But they can be sensitive to interest rate increases and generally aren't good as short-term investments.\n*   **Bonds**: Bonds are issued by corporations and government entities as debt. When you buy one, you essentially become a lender, for which you'll receive regular interest income for a predetermined period. Bonds are generally much safer investments than stocks, but they also typically offer lower returns.\nKeep in mind, too, that you can invest in one or more of these vehicles at the same time. In fact, this strategy is an excellent way to diversify your portfolio because it allocates your funds into different assets whose values aren't determined by the same factors. END
 TITLE: What to Consider Before Investing in Stocks CONTENT: Does Your Credit Score Come Into Play With Investing?\n-----------------------------------------------------\nInvestment brokers typically don't run a credit check when you apply for an account. That said, building and maintaining a good credit score can make a huge positive difference in your financial plan. Check your credit score often to determine its health, and take steps to develop good credit habits.\nThis includes paying your bills on time every month, keeping your credit card balances low, avoiding new credit applications unless you need it and keeping an eye on your credit report in case inaccurate or fraudulent shows up on your file.\nHaving great credit can help you save money on loans and credit cards, as well as on insurance premiums, which can give you more cash flow to invest and achieve other financial goals. END
 TITLE: Are Student Loans Tax Deductible? CONTENT: How Do Tax Deductions Work on Student Loans?\n--------------------------------------------\nThe U.S. tax code allows you to deduct up to $2,500 in student loan interest on your tax return every year, depending on how much you paid and your income level. You should receive what's called a 1098-E form from your student loan servicer or lender, which shows how much interest you paid during the year.\nTo qualify for the deduction, you need to meet the following eligibility requirements:\n*   You paid interest on a qualified student loan during the tax year.\n*   You're legally obligated to pay interest on the loan.\n*   You aren't married and filing separately from your spouse.\n*   Neither you nor your spouse (if you're filing jointly) can be claimed as a dependent on someone else's tax return.\n*   Your modified adjusted gross income (MAGI) is less than a certain amount, which is determined each year (more below).\nThe loan itself also needs to meet certain criteria for you to qualify for the deduction:\n*   It was taken out to pay qualified higher education expenses for you, your spouse or a person who was your dependent when you borrowed the money.\n*   The expenses were incurred for education provided during an academic period for an eligible student.\n*   The expenses were paid or incurred within a reasonable period of time before or after you took out the loan.\nFor the 2020 tax year, the income limit is a MAGI of $85,000 if you're filing on your own and $170,000 if you're married filing jointly. The value of the deduction is gradually reduced as your income gets closer to that limit: If your MAGI is $70,000 or more for single and head-of-household filers and $140,000 or more if you're married filing jointly, you'll begin to see a decreased deduction.\nRemember, this is your MAGI, which is lower than your gross income. If you're using tax preparation software or you've hired a professional, they can figure out what your MAGI is for you. If you're filing taxes on your own, you can use a worksheet provided by the IRS. END
 TITLE: Are Student Loans Tax Deductible? CONTENT: Additional Tax Breaks for Education\n-----------------------------------\nIf you're still in school or you're saving for or paying qualified education expenses for a spouse or dependent, you may also be eligible for other tax breaks. Here are the three most common ways to save on taxes with education. END
 TITLE: Are Student Loans Tax Deductible? CONTENT: How to Pay Off Your Student Loans Faster\n----------------------------------------\nGetting a tax break on your student loan interest is nice, but paying less interest will give you an even better return on your efforts. Depending on your situation, there are several ways to pay off your student loans faster. Here are just a few:\n*   Make interest-only payments while you're still in school.\n*   Make additional payments every month.\n*   Pay half of your monthly payment every two weeks.\n*   Consider refinancing your student loans at a lower rate and possibly a shorter repayment term.\n*   Set up automatic payments (some lenders offer an interest rate discount if you do).\n*   Look for ways to earn extra money that you can use to pay down your balance faster.\nThere's no single best approach to paying down student loan debt, so research all of your options to find the best strategy for you. END
 TITLE: Are Student Loans Tax Deductible? CONTENT: Pay Student Loans on Time to Build Credit\n-----------------------------------------\nIf you're a recent college graduate, you may not have had time to start building a credit history. Making your student loan payments on time every month can help you build a positive payment history, which is the most important factor in your FICO® Score☉ .\nEven if you've been out of school for a while or you're a parent of a student, on-time payments will make it easier for you to build and maintain a good credit history.\nCheck your credit score throughout the repayment process to keep track of your progress, and look for opportunities to address potential concerns as they arise. END
 TITLE: How to Trade In a Car CONTENT: Factors That Impact Your Trade-In\n---------------------------------\nWhen you bring a car to a dealership to trade in, there are several different things they look for to determine its trade-in value. That can include:\n*   Mileage\n*   Age\n*   Supply and demand in the local market\n*   Time of year\n*   Equipment\n*   Condition\nIt's also important to note that different dealers will have their own formulas for calculating trade-in prices. So if you're planning to shop around for your next car, it's a good idea to do the same with your trade-in value. END
 TITLE: How to Trade In a Car CONTENT: Can I Trade in My Car for a Lease?\n----------------------------------\nIf you're thinking of leasing a new vehicle instead of buying one, you can trade in your current vehicle as a down payment.\nOf course, the leasing process is different from the buying process. When you lease a vehicle, you typically have a contract for two to three years. During that time, your monthly payment goes toward covering the vehicle's depreciation, plus interest.\nAs a result, leasing is typically cheaper than buying, at least in terms of a monthly payment. In the long run, however, building equity in a vehicle and selling it when you want a new one can be more financially beneficial.\nSo is leasing a car a good idea? It really depends on your budget, preferences and goals. Leasing usually allows you to get into a new vehicle for less than what you'd pay if you took out an auto loan, and cycling through a new lease every two to three years ensures that you're always driving a newer car. That can save you money on costly maintenance and repairs that become more frequent as vehicles get older.\nOn the other hand, lease agreements often come with strict limitations and restrictions, including how many miles you can drive every year and the inability to make changes to the vehicle, such as upgrading to a better sound system. And, at the end of the lease, you won't own the car. Once you've paid off the loan on your purchased car, however, you'll own the car outright and can use it as a trade-in or potentially drive it for years without having to make a car payment every month.\nTake your time to weigh leasing versus buying to determine the right fit for you. END
 TITLE: How to Trade In a Car CONTENT: How to Get the Best Price for Your Trade-In\n-------------------------------------------\nIt's important to note that trading in your vehicle isn't the best way to maximize your profit if you're ready to sell your car. Dealers pay lower prices on trade-ins because they're turning around and selling the vehicles for a profit. In contrast, if you sell the car in a private-party transaction, you can usually get more money because the buyer isn't in the business of buying and selling cars and is typically buying it for their personal use.\nThat said, if you prefer the convenience of a trade-in, here are some steps you can take to negotiate the best price from the dealer. END
 TITLE: How to Trade In a Car CONTENT: What Is Negative Equity?\n------------------------\nTrading in a car is a convenient way to save money on your next vehicle, but in some cases, it may not be worth it.\nNegative equity is a term used to describe a situation where you owe more on your current auto loan than the car's value. According to Edmunds, 44% of new car sales with a trade-in involved negative equity in April 2020.\nSo what happens if you have negative equity? In most cases, the dealer will offer to pay the full balance of what you owe and add the deficiency to your new auto loan. This is the most convenient option, but it means you'll have a higher monthly payment on your new auto loan than if you had positive equity.\nSelling your car to a private party could be a good way to avoid this, especially if the difference in sales price is enough to wipe out the negative equity. But if it's not, you'll need to pay the deficiency in a lump sum, which may not be possible if you don't have the required cash.\nAs with every other part of the trade-in process, it's crucial that you consider all of your options if you have negative equity because there's no right answer for everyone. END
 TITLE: How to Trade In a Car CONTENT: Your Credit Score Is Another Good Way to Reduce Your Payment\n------------------------------------------------------------\nTrading in your car can decrease your monthly payment on a new auto loan significantly. But depending on the value of the vehicle, having good credit may be even better. Your credit score is an important factor in a lender's decision to approve your application and determine your interest rate.\nIf you have excellent credit, you'll typically get approved for a loan with single-digit interest rates. But if your credit is poor, you could end up with a much higher rate, which can be upwards of 20%.\nCheck your credit score before you start the car-buying process to determine where you stand. If your credit needs work and you're not in a rush to get a new car, take some time to address areas of your credit file that are hurting your score.\nThat can include getting caught up on past-due payments, paying down credit card balances and disputing any inaccuracies on your credit reports. Also, take steps to develop good credit habits, such as keeping your credit card balances low and avoiding unnecessary credit applications.\nThis process of improving your credit can take time, but your efforts could end up saving you hundreds or even thousands of dollars in interest. END
 TITLE: 7 Financial Priorities to Help You Plan CONTENT: 1\\. Start Building Your Emergency Fund\n--------------------------------------\nAn emergency fund may feel like the least beneficial step in the process. After all, the money doesn't work for you unless you actually experience an emergency. But having enough cash reserves set aside for a rainy day can be a lifesaver. It can help you avoid going into debt if an emergency arises, and keep your other financial goals on track.\nCommon reasons you may need to use your emergency funds include job loss, a short-term disability, or a needed repair to your home or vehicle. You get to determine what constitutes an emergency financial need in your life, but a tropical vacation or new pair of shoes probably shouldn't qualify.\nMany financial experts recommend socking away up to three to six months' worth of basic expenses in your emergency fund. Saving that much might be a tough prospect, but it's a good idea to get at least a small safety net in place before you start working on other financial goals. The right figure can vary from person to person, but consider working to set aside $1,000 or more before continuing on your financial journey—and then contributing to it regularly until you reach your ultimate goal. END
 TITLE: 7 Financial Priorities to Help You Plan CONTENT: 2\\. Get Your 401(k) Plan Match\n------------------------------\nIt may seem a little early in the process to discuss retirement. For many people, that stage of their lives is still decades away. But if your employer offers a 401(k) plan with a contribution match, there's a big reason you should at least contribute enough to maximize that benefit.\nA 401(k) match could give you up to a 100% return on your investment. For example, let's say you earn $60,000 per year and your employer matches your contributions up to 3% of your salary. If you contribute $1,800 per year—that's $150 per month—you'd get another $1,800 from your employer. You'll be hard-pressed to find anything else that can beat that immediate return.\nThat said, there are some exceptions to this approach. In some cases, an employer may have a vesting schedule for their contributions. For example, you may need to remain with the company for a set period of time before you own their contributions. If you leave before that time, the employer keeps the money.\nIn this case, if you're not confident you'll stay long enough to get the full amount, it may not be worth it to prioritize this quite yet. END
 TITLE: 7 Financial Priorities to Help You Plan CONTENT: 3\\. Purchase Insurance\n----------------------\nInsurance is another aspect of a financial plan that's nowhere near as exciting as investing and eliminating debt. In fact, you generally pay for insurance hoping you'll never actually need to use it.\nBut just like with your emergency fund, having the right insurance coverage can save you and your loved ones a lot of money and heartache if you end up needing to file a claim. Some of the more important types of insurance you'll want to research include: END
 TITLE: 7 Financial Priorities to Help You Plan CONTENT: 4\\. Pay Off High-Interest Debt\n------------------------------\nAt this point, you may be wondering if you can start investing in the stock market. Something to consider, though, is that while stock returns can be volatile, you'll get a guaranteed return in the form of interest savings if you can manage to pay off your high-interest debts early.\nTo decide whether it's worth it to invest or pay off debt, take a look at the interest rates on your loans and credit cards. Financial advisors often use 7% as a benchmark return for long-term investing in the market. So if you have a debt that charges a higher interest rate than that, you may be better off tackling the debt before you get into the market. In addition, paying down high-interest debt like credit cards can improve your credit score and make borrowing money for a house or car less expensive when that time comes. END
 TITLE: 7 Financial Priorities to Help You Plan CONTENT: 5\\. Save 15% Toward Retirement\n------------------------------\nFinancial experts recommend that you put at least 15% of your gross monthly income toward retirement. So if you earn a $60,000 salary, that's $9,000 each year.\nThat can seem daunting, especially if you're not saving anywhere close to it. One way to make it more feasible is to set up your retirement plan so you increase your contributions at least slightly once a year, so it's not too much of a shock.\nThe good news is that if you're getting a 401(k) contribution match from your employer, that money counts toward your 15% goal. So if you contribute 3% of your salary and your employer gives you another 3%, your savings rate is 6%. And, if you're saving in a 401(k) or traditional IRA, your contributions are made pretax, which reduces your income and thus the taxes you pay on that income.\nAgain, retirement may not seem like a priority for some because it's so far off. But the more you invest early in your adult life, the less you'll have to catch up later. END
 TITLE: 7 Financial Priorities to Help You Plan CONTENT: 6\\. Max Out Your Emergency Fund\n-------------------------------\nAt this point, you've already built a solid foundation. But if your emergency fund isn't where you want it, take time now to start working on getting it there. Remember, experts recommend three to six months' worth of expenses. But rules of thumb aren't meant to be absolute.\nTake your time to consider how much money you'd be comfortable leaving in a savings account for a rainy day. For some people, it may be at the low end of the suggested range, while for others—especially those with children, insecure jobs or a mortgage—it may be more. END
 TITLE: 7 Financial Priorities to Help You Plan CONTENT: 7\\. Save or Invest in Other Goals\n---------------------------------\nYou may have a lot of other financial goals beyond the steps we've already discussed. Once you've built your foundation, now is the best time to start working toward achieving them. That can include saving for a down payment on a home, home renovations, a family vacation or anything else that's important to you.\nIt could also mean just investing without any particular goal in mind beyond earning some gains. Take some time to consider which goals are most important to you and prioritize them based on what you can afford, your level of risk tolerance and your other financial obligations. END
 TITLE: How to Make Money With Your Car CONTENT: Rent Out Your Car\n-----------------\nIf you don't use your car very much, or you have days when you don't use it at all, consider using an app like Getaround or Turo to rent it out to others. You can choose to rent out your car by the hour or day, which gives you flexibility in terms of when you can make it available and when you can use it for your own needs.\nAccording to Getaround, it's possible to earn hundreds of dollars per month with its app.\nBefore you can list your vehicle for rent, keep in mind that there are some limitations. With Turo, for instance, you can only rent out a car that's registered to you or to an owner who has authorized you to list it. The vehicle must have a clean title, and can't be more than 12 years old or have more than 130,000 miles on the odometer. You'll also need to meet specific maintenance and insurance requirements.\nBefore you list your car, compare the services available, including how each process works, what you can earn, the eligibility requirements and other features that are important to you.\nAlso, don't expect your personal auto insurance policy to cover your renters when they're driving your vehicle. Rental services may provide protection plans you can purchase separately to make sure you're covered if a renter is involved in an accident.\nIn some cases, insurance companies may consider dropping you for renting out your car, even if you have an additional protection plan through the rental service. If that's a possibility, you're better off keeping your insurance to avoid a lapse, which can cause your premiums to jump when you sign up for insurance again. END
 TITLE: How to Make Money With Your Car CONTENT: Sign Up for a Ridesharing App\n-----------------------------\nUber, Lyft and similar apps have become incredibly popular as an alternative to taxis, public transportation and personal vehicles. By signing up to drive for one of these services, you can set your own schedule and earn cash with every rider you help get to their destination.\nAs with renting out your car, though, it's important to understand how the insurance works. In general, a personal auto insurance policy isn't going to protect your vehicle while you drive because you're using it for business purposes instead of personal travel.\nAs a result, you'll likely need to purchase rideshare insurance, which you can get from many major auto insurers. You can also purchase insurance coverage directly from the rideshare service, but make sure you shop around first to improve your chances of getting the best deal you can.\nAlso, depending on where you live, there may be specific laws and regulations you need to follow as you work. Take some time to research potential issues that could impact your ability to earn money as a rideshare driver. END
 TITLE: How to Make Money With Your Car CONTENT: Drive for a Food or Grocery Delivery Service\n--------------------------------------------\nIf you like the idea of driving for money but don't feel comfortable transporting other people, consider a food or grocery delivery service.\nThere are many services you could choose to work with, with each company having its own perks and downsides. Services include DoorDash, Uber Eats, Postmates, Grubhub, Instacart and more. Depending on which one you choose, you'll be picking up and delivering food from local restaurants or grocery stores.\nAs with ridesharing, you can set your own schedule with this gig, and you'll receive a payment for each delivery you make. END
 TITLE: How to Make Money With Your Car CONTENT: Help People Move\n----------------\nMoving can be a stressful experience, and it's common for people to want a little help doing it. Apps such as Taskrabbit and Thumbtack give you a way to offer the aid of your vehicle to people looking to move their personal belongings and furniture from their old place to their new one.\nObviously, this option is best for those who have bigger vehicles that can handle large loads in the cargo compartment, or are able to tow a trailer full of heavy furniture. Again, you can set your own schedule, deciding when you want to work, and unlike ridesharing and food delivery services, you can also set your own rates. END
 TITLE: How to Make Money With Your Car CONTENT: Additional Side Hustles to Consider\n-----------------------------------\nIf you're not sure about some of the ways you can make money with your car or you simply want more options, here are some other side hustles you can try that allow you to set your own schedule.\n*   **Find freelance work online.** You may be able to make money providing services for others online if you have a marketable skill or trade. Examples include things like writing, graphic design, tutoring, marketing, translating and more. Websites including Fiverr, Upwork, Freelancer.com and others can help connect you with potential clients.\n*   **Sell some of your belongings.** Over the years, you've likely accumulated some belongings you no longer use or want, and now may be a good time to try to turn them into cash. Take inventory of the items in your home and try to single out ones that you can sell in a yard sale or through an online marketplace. Doing this also has the added benefit of helping you declutter.\n*   **Walk dogs.** If you're a dog enthusiast, the idea of walking one for money may feel like a dream. Websites like Rover and Wag! can help you get started by connecting you with dog owners in your area that need assistance with their pets.\n*   **List your spare bedroom for rent.** Airbnb has opened up a lot of opportunities for people to rent out a spare bedroom or even their entire place to travelers. This gig doesn't have to require a lot of time, especially if you hire someone to do the cleaning between each stay. Just be sure to check your city's codes regarding vacation rentals—in some areas, it's not allowed.\n*   **Sell your creations.** If you're into arts and crafts, you may be able to sell what you make through websites like Etsy, Shopify and Handmade at Amazon. Some artists even choose to accept commissions for custom art creations, such as a painting of a customer's beloved cat.\nWith these and countless other ways to make extra money, it's important to focus on opportunities that work best for you based on your skills, experience and time. Some gigs may be more lucrative than others, but choosing opportunities that you enjoy can help you achieve your money goals. END
 TITLE: How to Make Money With Your Car CONTENT: Drive Down the Cost of Owning Your Car With Better Credit\n---------------------------------------------------------\nUsing your car to make money can be lucrative with the right opportunity, but it's important to consider the cost of fuel, maintenance, insurance, repairs and the cost of the car itself.\nBy building and maintaining a good credit score, you can qualify for lower interest rates and even lower insurance premiums in some states, which can help keep your car costs down and increase your profits. Check your credit report and score to get an idea of where you stand, take steps to address potential issues and establish a positive credit history for the future. END
 TITLE: How to Get a Loan to Buy an Existing Business CONTENT: What Do Lenders Consider When You Apply for a Business Loan?\n------------------------------------------------------------\nWhen you're buying an existing business, lenders want to know about both you and the business you want to buy. That's fair: Up to this point, you and your prospective business have had two entirely independent histories.\nAs they would with any loan, lenders want to know about your personal credit history. Do you have a history of successfully managing debt? Do you handle credit responsibly? They'll want information about your income, your current business (if you have one) and any relevant experience that makes you a good candidate for running this new business successfully. Here's a short list of items to prepare:\n*   Personal credit score\n*   Tax returns\n*   Income documentation and\/or cash flow statement\n*   Outstanding debt\nIf you already own a business and are looking to acquire another to expand operations or change your business model, lenders will also want to know about the financial health of your existing company. Check with your lender for a full list of financial information they require, but be prepared to provide the following:\n*   Financial statement (showing income, balance sheet, profit margin and cash flow)\n*   Business tax returns\n*   Business bank statements\n*   Business credit score\nFurther, they'll want to make sure your business strategy is sound and that your proposed business purchase has the income potential to allow you to repay your loan. Proving that could require showing:\n*   Valuation of the business you're acquiring\n*   Business licenses\n*   Three to five years of financial projections\n*   Business plan END
 TITLE: How to Get a Loan to Buy an Existing Business CONTENT: Things to Do Before Applying for a Business Loan\n------------------------------------------------\nBefore you can apply for a loan, you need to assemble some basic information. Many of the answers you need will require input from the seller. Although this may seem cumbersome, it's also an opportunity to get some cold, hard facts about the business you're hoping to buy.\nThe Small Business Administration (SBA) recommends working with an accountant and an attorney to help you navigate the sales process. Together, they can help you accomplish key objectives, such as:\n*   Working out a fair business valuation.\n*   Negotiating and executing a letter of intent and sales agreement.\n*   Understanding the tax requirements and consequences.\nTo prepare for the loan application process, ask yourself:\n*   How much of the purchase price can I finance myself—and how much can I use as a down payment? Most lenders require at least 10% down. It's often preferable, and you may be required, to put down more than that since the more money you put down on a loan, the less money you will need to borrow.\n*   Do I have collateral I can use to secure my loan? Business loan collateral might include the business you're purchasing, equipment, vehicles, real estate, inventory and accounts receivable. Personal assets—such as vehicles, valuables, retirement accounts or your home—may also be used to secure a business loan, but beware of pledging an asset you wouldn't want to part with if the business falters.\n*   How does my credit measure up? Check your personal credit score for free and access a credit score and report for your proposed business before starting the application process so you know what to expect. END
 TITLE: How to Get a Loan to Buy an Existing Business CONTENT: Where Can You Get a Business Loan?\n----------------------------------\nBusiness loans are available from a variety of sources. Your current bank or credit union (or the one your prospective business uses) is an obvious starting point, but you can also shop around for small business lenders. Online lending platforms like Fundera connect small business borrowers with multiple lending sources for a range of business loans including Small Business Administration (SBA) loans, business lines of credit and term loans. According to Fundera's website, borrowers with at least $150,000 in annual revenues, one or more years in business and credit scores of 600 and above have been successful in securing loans.\nFor many small business owners, SBA loans work where other lending options do not. The SBA doesn't make loans to small businesses; instead, it guarantees loans from lenders like banks and credit unions, which takes some of the risk out of lending. As a result, SBA loans typically have favorable interest rates, but also have specific criteria borrowers must meet to qualify. Look over the SBA's 7(a) Loan Application Checklist to learn more.\nSome alternative lenders also offer small business financing. Online lender LendingClub offers business loans to entrepreneurs who have at least $50,000 in sales, have been in business for 12 months or more, have no bankruptcies or tax liens and own at least 20% of their business. END
 TITLE: How to Get a Loan to Buy an Existing Business CONTENT: Additional Ways to Finance Buying a Business\n--------------------------------------------\nGetting a loan to fund a business purchase isn't your only option. If you can't find a willing lender or your approved loan amount doesn't cover the cost of the business, consider these alternative funding ideas:\n**Negotiate seller financing.** Although some sellers are looking to cash out and never look back, some may be open to being paid over time. You can negotiate this type of financing into your sales agreement and skip the bank altogether.\n**Borrow from friends and family.** This is not an option to be taken lightly: The emotional cost of defaulting on your loved ones is astronomical. But if you're confident in your ability to repay and are willing to write up an ironclad loan agreement, this can be a viable funding source.\n**Seek out investors or partners.** You can share the investment—and the equity in your business. Just be aware that doing so will affect how you operate your business, who's in control and how profits are distributed.\n**Use your personal funds.** In addition to your regular savings, you can consider using investments and other sources of cash to help pay for your new business. Just be wary of tax consequences and the risk of depleting your emergency fund or nest egg: Even the best business opportunity represents some risk. You can also take your reserves of personal credit into account, although financing large sums of money at high credit card interest rates isn't an ideal way to fund your business as it can easily cause your credit utilization to shoot up, which could have big credit implications.\nIf you're hoping to purchase a business with a minimal upfront investment—sometimes described as a leveraged buyout—you might try a combination of these options. For example, you might use personal funds to make a 10% down payment, secure an SBA loan for 50% of the purchase price and ask the seller to finance the remaining 40%. A leveraged buyout can help you get into a business you don't have the funds or borrowing power to buy outright. But the high debt load can also increase your risk, so proceed with caution. END
 TITLE: How to Get a Loan to Buy an Existing Business CONTENT: A Lender's Perspective Can Bring Clarity\n----------------------------------------\nSeeking a loan to buy an existing business can be a lot of work, but it may have a hidden benefit. It requires you to formulate the value of the business you want to buy and your reasons for believing you can succeed. You'll need to examine the business's past financial wins—and losses—and map out how you can make money and grow in the future. Putting yourself through a loan application process can help you understand your investment more clearly. You may even get feedback on the risks and highlights of the opportunity you're considering. On an investment this big, clarity may be even more valuable than cash. END
 TITLE: What Is a Business Line of Credit? CONTENT: How Does a Business Line of Credit Work?\n----------------------------------------\nMost business lines of credit are revolving credit. Kind of like a credit card, a revolving business credit line gives you a set credit limit up to which you can borrow. You can either carry the balance, making at least the minimum payment each month, or pay it off in full; interest accrues only on the amount you borrow.\nAs you pay back the funds you've borrowed, a revolving credit line lets you borrow more without having to apply for a new line of credit. There are, however, business credit lines that do not allow you to revolve debt; these require you to reapply after you've paid back what you borrowed.\nBusiness lines of credit come in two basic flavors: secured and unsecured.\n*   **Secured lines of credit** require collateral. This might be business assets such as equipment, inventory or receivables, or personal assets such as your house. There are also secured lines of credit that require a personal guarantee or a lien on your business. If your company is new, with low sales and no established business credit score, a secured line of credit may be easier to get. Just be sure you don't pledge any collateral you don't want to lose.\n*   **Unsecured lines of credit** don't require collateral, but they usually require annual revenue, a higher business and personal credit score, and a longer business history. This evidence of success helps convince the lender that you'll be able to repay the money.\nEven if your business can qualify for an unsecured line of credit, it may be to your advantage to apply for a secured line of credit. That's because unsecured credit lines tend to charge higher interest rates and offer lower credit limits.\nYou might be wondering why a business owner would get a line of credit rather than a loan. There are some key differences between a business loan and a business line of credit.\nWhereas a line of credit is revolving credit, a business loan is installment credit. When your loan application is approved, you get a lump sum of money and must start making fixed monthly payments on it right away—even if the money is just sitting in your bank account. When you pay off the loan, the account is closed. If you want more money, you'll have to apply for a new loan. Business loans are often restricted to certain uses, such as buying equipment or real estate.\nA business line of credit on the other hand can be used for whatever business purpose you want. Business credit lines are usually available for smaller amounts than loans, with about $250,000 being the maximum. Because banks are often reluctant to issue smaller loans, a line of credit can be easier to get. END
 TITLE: What Is a Business Line of Credit? CONTENT: Who Qualifies for a Business Line of Credit?\n--------------------------------------------\nThe documents required to apply for a business line of credit may vary slightly depending on the lender you're approaching and how much money you want. In general, though, you'll need to provide the following information:\n*   **Personal and business tax returns**: This helps provide proof of your business's revenues.\n*   **Bank account information**: Some online lenders ask you to provide access to your business bank accounts so they can verify your financial information.\n*   **Business financial statements**: Lenders want to see proof of your annual revenues and other sources of income to be sure you have the financial resources to pay back the line of credit.\n*   **Basic personal identification information**: Your Social Security number and identification.\n*   **Basic business identification information**: This might include your Employer Identification Number (EIN), business name, business entity type, business address, and business licenses or permits.\n*   **Current debt schedule**: If your business already has outstanding loans or other debt, lenders will want to see your monthly payment commitments. END
 TITLE: What Is a Business Line of Credit? CONTENT: What Credit Score Is Used for a Business Line of Credit?\n--------------------------------------------------------\nLenders generally consider a mix of your personal and business credit scores when considering your application for a business line of credit.\nThe three major business credit bureaus—Dun & Bradstreet, Experian and Equifax—gather information on your business from your vendors and suppliers, bankers and lenders, public records and other sources to build your business credit report.\nThe information in those reports is also used to create business credit scores. Three commonly used business credit scoring models are the Experian Intelliscore Plus, the D&B Paydex Score and the Small Business Scoring Service℠ (SBSS) FICO uses. Each business credit scoring model works a little differently and might be used for different purposes, such as to assess lending risk. The D&B Paydex Score and Experian Intelliscore Plus models use a range from 1 to 100, and SBSS scores range from 0 to 300. Generally, higher scores mean better credit; lower scores mean higher risk.\nYour personal credit rating could also be a factor in your ability to get a business line of credit, especially if you're a sole proprietor or have a relatively new business without a business credit history. Before you start researching business lines of credit, check your personal credit report and score to see how your credit measures up.\nDifferent lenders have different minimum credit score standards you'll have to meet to get a business line of credit. However, in most cases, you'll need a personal credit score of 580 or above, or at least \"fair\" in the FICO® Score☉ scoring model. If your credit score is on the lower end of the scale, you may pay more for a credit line and be asked for more collateral than if your credit score is good or excellent.\nYou can start building a business credit history by forming a corporation or limited liability company (LLC) to separate your business and personal identities, opening business bank accounts in your company's name, and asking your vendors and suppliers to report your payments to the three business credit bureaus. Getting a business credit card and paying your bills on time will also help to improve your business credit score; just make sure the credit card issuer reports to the business credit bureaus. END
 TITLE: What Is a Business Line of Credit? CONTENT: Where Can You Get a Business Line of Credit?\n--------------------------------------------\nYou can get business lines of credit from a variety of sources, including banks and online lenders and through the Small Business Administration (SBA). Here's a closer look at the pros and cons of each.\n*   **Traditional banks**: Banks typically have stricter lending requirements for lines of credit than online lenders do. For example, they are likely to require more documentation, expect to see higher credit scores and take longer to approve lines of credit. The tradeoff: Banks generally offer lower interest rates, better terms and larger credit limits. Your current business bank can be a good place to start investigating lines of credit; just be sure to shop around and see what other lenders are offering as well.\n*   **Online lenders**: There are plenty of places to apply for a business line of credit online. These include online lending marketplaces that match businesses with lenders and direct online lenders who make loans themselves. Both types of online lenders generally have a faster, simpler application process than banks. They may focus more on your cash flow than on financial statements, for example. They also tend to be more flexible than traditional banks in their approval criteria, so smaller, newer businesses that can't get credit lines from banks may want to try this option. Just keep in mind that online lenders generally charge higher interest rates than banks.\n*   **The SBA**: The SBA CAPLines program offers four types of credit lines: a seasonal line of credit, a working capital line of credit, a line of credit for builders and contractors, and a line of credit for subcontractors. You must meet the criteria for the SBA's 7(a) loan program to be considered for any of these credit lines. The SBA does not issue credit lines itself; instead, it works with approved lenders who do. The SBA guarantees a percentage of the credit line, making lenders more willing to extend credit to small businesses. Earning that guarantee isn't easy: This option is best for businesses with an established track record and the ability to provide solid documentation of their financial stability. END
 TITLE: What Is a Business Line of Credit? CONTENT: Using a Business Line of Credit to Grow Your Business\n-----------------------------------------------------\nChecking your [business credit report](;link=5500) and personal credit score before you apply for a business line of credit can help you determine whether you're likely to be approved. The higher your scores, the better your chances of getting a credit line from lenders who have strict criteria, such as banks. If your scores are on the lower end of the scale, you may take some time to improve them, or try your luck with online lenders.\nGetting a business line of credit, using it and paying it back on time can help a new business build a business credit score, which will make it easier to get other kinds of financing as your company grows. Just make sure that the lender reports your payments to the three major business credit bureaus: Dun & Bradstreet, Experian and Equifax. Using Experian's credit monitoring service Business Credit Advantage can help you stay on top of your business's credit history and credit score—two key factors in your business's financial future. END
 TITLE: How Much Equity Should I Have in My Car Before I Sell? CONTENT: How Do I Know if I Have Positive Equity in My Car?\n--------------------------------------------------\nYou have positive equity in a car if the vehicle is worth more than you owe on your auto loan. If the car is worth less than you owe on your loan, you have negative equity, which is also called being upside down on your loan.\nTo figure out whether you have positive equity in your car, start by determining how much the car is worth. You can estimate the car's value using the calculator tools at the Kelly Blue Book or Edmunds websites. Just input your car's make, model, year, condition, mileage and other factors to estimate both its trade-in value and its private-party value. (Trade-in value is generally lower than private-party value; however, when you trade in the car, you don't have to deal with the hassles of placing ads, responding to buyers and showing the car.)\nOnce you have an estimate of your car's value, contact your lender to get the exact payoff amount you owe on your auto loan. (If you plan to sell the car privately, you should also get a payoff letter you can show to potential buyers.) Subtract the payoff amount from the car's value to see if you have positive or negative equity. END
 TITLE: How Much Equity Should I Have in My Car Before I Sell? CONTENT: How Much Is Enough Equity to Sell My Car?\n-----------------------------------------\nBefore selling your car, you'll want to wait until you have enough equity to make a profit from the deal—otherwise, you'll get no benefit from the transaction.\nFor example, if the private-party sale value of your car is $10,000 and you owe $4,000 on your auto loan, you have $6,000 in positive equity. You could sell the car for $10,000 and pocket $6,000 in profit.\nOn the other hand, if the private-party sale value of your car is $4,000 and you owe $6,000 on your auto loan, you have negative equity of $2,000. When you sell the car, the lender gets the $4,000, and you still owe $2,000 on the loan—but you no longer have a car.\nIf you've got positive equity in your car but still owe on the loan, here's how the private sale and trade-in process would work.\n*   **Private buyer**: Because the lender (not you) has title to the car, check with your lender to see how a sale will be handled. Some lenders want you to pay off the loan in full and take title before you can sell the car. Other lenders will let the buyer pay off the loan and send the buyer the title. Buyers will be wary about buying a car that you don't yet have title to, so you and the buyer may need to visit a local office of the lender to handle the transaction in person.\n*   **Trade-in**: When you trade in the car, the dealer pays off the loan and gives you a credit for the remaining value of the car; this credit goes toward your next car. Although you'll make less money than in a private-party sale, the transfer of title is much simpler. END
 TITLE: How Much Equity Should I Have in My Car Before I Sell? CONTENT: Making the Most of a Car Sale\n-----------------------------\nTo make a profit from selling your car, be sure you have positive equity in the vehicle. Want to maximize your profit? Wait until you've paid off your car and have the title to it; then sell to a private party. This will net you the biggest profits from the sale—giving you more money to put toward your next set of wheels. END
 TITLE: Indigo® Platinum Mastercard®: A Credit Card Designed for Poor Credit CONTENT: Prequalify Before Applying\n--------------------------\nOne benefit of the Indigo® Platinum Mastercard® is its prequalification tool, which allows you to determine your eligibility before you apply. Prequalifying doesn't require a hard credit inquiry, which can lower your credit score by a few points. The soft credit check that occurs with prequalification won't affect your credit at all.\nTo prequalify, you'll just need to share your name, address, date of birth, Social Security number and contact information. If you don't prequalify, the card's issuer, Celtic Bank, may recommend a card that you are prequalified for from a partner bank, such as the First Progress Platinum Elite Mastercard® Secured Credit Card. END
 TITLE: Indigo® Platinum Mastercard®: A Credit Card Designed for Poor Credit CONTENT: Build Credit Across All Your Credit Reports\n-------------------------------------------\nOne of the main reasons to consider getting the Indigo® Platinum Mastercard® over another credit card is that your payments will be reported to the three major credit bureaus each month. By paying all your bills on time and keeping your balance well below your credit limit, you could improve your credit scores with this card.\nNot all credit cards for bad credit do this—some report to only one or two credit bureaus, and some may not report at all. END
 TITLE: Indigo® Platinum Mastercard®: A Credit Card Designed for Poor Credit CONTENT: Is This Card Right For You?\n---------------------------\nThe Indigo® Platinum Mastercard® can be a good fit if you're working on improving your credit and don't have the cash to cover a security deposit. But unless you qualify for no annual fee, it may be worth saving up for a deposit and getting a card that doesn't charge one or one that offers rewards.\nBut if you do qualify for a $0 annual fee with the Indigo® Platinum Mastercard®, and use the card sparingly and responsibly, it can be a great tool to help you build your credit. END
 TITLE: How Can a Starter Credit Card Help Build Credit? CONTENT: As the name suggests, a starter credit card is designed for people who have a limited credit history or no experience with credit at all.\nThese cards can provide access to the credit system, helping you establish a positive credit history as you use the card responsibly and pay your bill on time each month.\nIn general, there are three types of starter credit cards: secured credit cards, student credit cards and unsecured credit cards for bad or no credit.\n### Secured Credit Cards\nSecured credit cards function the same as unsecured cards with one key difference: They require a security deposit—typically equal to your desired credit limit—to get approved.\n\"It's easier to get a secured card rather than an unsecured one because you're basically taking the risk away from an issuer,\" says Bill Hardekopf, CEO of LowCards.com. \"You're securing the loan with a deposit \\[and\\] that deposit basically acts as your credit limit.\"\nIn most cases, you'll get the deposit back after you close the account in the future. Some card issuers, however, may choose to refund your deposit while your account is still open, effectively converting it into an unsecured card.\nMany secured credit cards charge an annual fee, but some of the best secured cards don't. Also, don't expect a lot of perks with one of these cards, even if some offer cash back rewards.\n### Student Credit Cards\nIf you're a college student, you may be able to qualify for a student credit card. Unlike secured cards, you don't need a security deposit to get approved for one of these.\nMost student credit cards don't charge an annual fee, and many even offer rewards on everyday purchases.\nBut just because you're a college student, it doesn't mean you'd automatically qualify. While you don't need a credit history for the Deserve® EDU, the Journey® Student Rewards from Capital One® is recommended for students with fair credit, which means a FICO® Score☉ of 580 to 669.\n### Unsecured Credit Cards for Bad or No Credit\nSome credit card issuers offer a chance to build credit without needing to put up a security deposit, but these cards tend to have drawbacks.\n\"They will come with higher interest rates because someone with limited credit is a risk, and issuers base their interest rates on risk,\" Hardekopf says. \"The lower your credit scores, the higher the risk you are, so the higher the interest rates you will get.\"\nIn some cases, you could end up paying a one-time processing or program fee when you get approved, a monthly fee, an annual fee and an APR upwards of 30%.\nDon't stress too much about the rate, though. Your goal should be to use the card in a way that the APR is irrelevant. \"Your interest rate should be there to scare you, so it never has to be assessed on you,\" Hardekopf says. \"If you pay your card off in full on time every month, the interest rate will have no effect on you. If you mess up, it will have an effect.\" END
 TITLE: How Can a Starter Credit Card Help Build Credit? CONTENT: Why It's a Good Idea to Get a Starter Credit Card\n-------------------------------------------------\nIn most cases, a starter credit card won't have ideal terms. But it's still a good idea to consider getting one if you're new to credit. The most important reason for one is that it'll make it easier to qualify for inexpensive credit in the future.\nIf you wait until you need to buy a car or a home and don't have a credit history, you may have a hard time getting approved. Even if you can get an auto or mortgage loan with a limited credit history, you're unlikely to qualify for the best terms and interest rate.\nBuilding a good credit history can also help you in other ways, including:\n*   Improving your chances of renting an apartment, home or condo\n*   Giving you an advantage over other job candidates if a prospective employer runs a credit check\n*   Reducing or eliminating the required deposit when signing up for a utility account\n*   Decreasing your auto and homeowners insurance premiums\nIt can take a while to establish a good or excellent credit history, and the sooner you start building your credit, the sooner you can start reaping the benefits.  \nMore Tips on How to Build Credit\n--------------------------------\nAs you use your new starter credit card, here are some things to keep in mind as you work on establishing your credit history from scratch:\n*   **Pay on time, every time**: A late payment won't be added to your credit report until it's been 30 days since you missed it. But it's still a good idea to pay your bill on time every month to avoid interest charges and fees (with most cards).\n*   **Keep your balance low**: Your credit utilization rate can have a significant effect on your credit score, so try to keep it at least below 30% at all times. To accomplish this, especially if you have a low credit limit, use the card sparingly or make multiple payments throughout the month.\n*   **Get added as an authorized user**: If you have a parent or other family member who uses credit cards responsibly, consider asking them to add you as an authorized user on their account. Once you're added, the entire card history will be added to your credit report, which can further help improve your credit scores.\n*   **Avoid unnecessary borrowing**: Once you start getting some momentum with building your credit, you may be tempted to apply for more credit cards or loans. While adding more tradelines, or accounts, to your credit report can help improve your scores, going into debt unnecessarily could make things worse in the long run.\nAs you start building your credit history, get your free credit score from Experian to keep track of your progress, and watch for potential issues that you need to address. Building credit can take time, but the benefits are worth the effort. END
 TITLE: How Can a Starter Credit Card Help Build Credit? CONTENT: Why It's a Good Idea to Get a Starter Credit Card\n-------------------------------------------------\nIn most cases, a starter credit card won't have ideal terms. But it's still a good idea to consider getting one if you're new to credit. The most important reason for one is that it'll make it easier to qualify for inexpensive credit in the future.\nIf you wait until you need to buy a car or a home and don't have a credit history, you may have a hard time getting approved. Even if you can get an auto or mortgage loan with a limited credit history, you're unlikely to qualify for the best terms and interest rate.\nBuilding a good credit history can also help you in other ways, including:\n*   Improving your chances of renting an apartment, home or condo\n*   Giving you an advantage over other job candidates if a prospective employer runs a credit check\n*   Reducing or eliminating the required deposit when signing up for a utility account\n*   Decreasing your auto and homeowners insurance premiums\nIt can take a while to establish a good or excellent credit history, and the sooner you start building your credit, the sooner you can start reaping the benefits. END
 TITLE: How Can a Starter Credit Card Help Build Credit? CONTENT: More Tips on How to Build Credit\n--------------------------------\nAs you use your new starter credit card, here are some things to keep in mind as you work on establishing your credit history from scratch:\n*   **Pay on time, every time**: A late payment won't be added to your credit report until it's been 30 days since you missed it. But it's still a good idea to pay your bill on time every month to avoid interest charges and fees (with most cards).\n*   **Keep your balance low**: Your credit utilization rate can have a significant effect on your credit score, so try to keep it at least below 30% at all times. To accomplish this, especially if you have a low credit limit, use the card sparingly or make multiple payments throughout the month.\n*   **Get added as an authorized user**: If you have a parent or other family member who uses credit cards responsibly, consider asking them to add you as an authorized user on their account. Once you're added, the entire card history will be added to your credit report, which can further help improve your credit scores.\n*   **Avoid unnecessary borrowing**: Once you start getting some momentum with building your credit, you may be tempted to apply for more credit cards or loans. While adding more tradelines, or accounts, to your credit report can help improve your scores, going into debt unnecessarily could make things worse in the long run.\nAs you start building your credit history, get your free credit score from Experian to keep track of your progress, and watch for potential issues that you need to address. Building credit can take time, but the benefits are worth the effort. END
 TITLE: Everything You Need to Know About Business Auto Loans CONTENT: What Is a Business Auto Loan?\n-----------------------------\nFor the most part, business auto loans function similarly to consumer auto loans. When you borrow money to purchase a car or truck, the vehicle acts as collateral for the loan. This means that, unlike some other business loans, you may not have to sign a personal guarantee promising you'll pay back the debt with personal assets if your business defaults.\nThese loans also tend to carry lower interest rates than unsecured business loans because the built-in collateral reduces the lender's risk in the transaction.\nLoan terms, however, can vary by lender. For example, while some lenders will allow you to finance up to 100% of the vehicle's sales price, others may require a down payment. You'll work with your lender to figure out loan amounts and restrictions on the age and mileage of the vehicle.\nYou can generally expect a repayment term similar to a consumer auto loan, with many commercial auto lenders offering up to 72 months.\nBecause it's your business borrowing the money, lenders will likely base your loan terms on your business credit history, not your personal credit history. If you haven't yet established a business credit history, you may need to provide a personal guarantee, which can affect your finances and personal credit history if your business defaults on the debt. END
 TITLE: Everything You Need to Know About Business Auto Loans CONTENT: What Do I Need to Get a Business Auto Loan?\n-------------------------------------------\nIf you're considering a business auto loan, you'll need to provide several documents to the lender.\nFor starters, since you're borrowing the money through your business, you'll need to prove you own the company. This documentation may include a business license and registration, partnership agreements, articles of incorporation or other documents.\nYou may also be asked to share your employer identification number (or Social Security number if you're a sole proprietor), bank statements, tax returns, a profit and loss statement, cash flow statements and a balance sheet. You may even need to put together a business plan showing why you need the vehicle and how you'll pay back the loan.\nIf your business credit history isn't very robust, you may also need to provide your Social Security number, personal tax statements and bank statements, and other documents proving your personal income and creditworthiness.\nAgain, each lender may have different needs, so it's a good idea to reach out before you apply to get an idea of what you'll need to pull together. END
 TITLE: Everything You Need to Know About Business Auto Loans CONTENT: Can I Get a Business Auto Loan With Bad Credit?\n-----------------------------------------------\nIt is possible to qualify for a business auto loan if you have limited or no business credit history and bad personal credit. But your options will be limited, and you may end up paying higher interest rates and fees because your lender is taking on more risk.\nAlso, you'll likely need to provide a personal guarantee that you'll pay back the loan with your personal funds and assets if your business ends up defaulting.\nBecause of the high costs and the threat to your personal financial security, it may be worth working on rebuilding your credit before you apply. Alternatively, you may consider trying to find another way to finance a vehicle. END
 TITLE: Everything You Need to Know About Business Auto Loans CONTENT: What Happens if I Default on the Payments?\n------------------------------------------\nIf your business auto loan doesn't require a personal guarantee, and your company defaults on the debt, the lender can repossess the vehicle—potentially dinging your business credit history. In this situation, though, your personal credit history can make it through the process unscathed.\nWhen you've provided a personal guarantee and your business defaults on the debt, the lender or a debt collection agency may choose to report the debt to the consumer credit reporting agencies, which will affect your personal credit report and scores.\nIf you can manage to pay back the loan using personal assets, you can minimize the negative effect the defaulted debt has on your personal credit scores. If you can't, the default can damage your scores and make it difficult to get approved for credit in the future. END
 TITLE: Everything You Need to Know About Business Auto Loans CONTENT: Carefully Consider Whether a Business Auto Loan Is Right for You\n----------------------------------------------------------------\nA business auto loan may help you grow your business, but it's important to understand what's required and how it can affect your business and personal life.\nStart by checking your business credit score and seeing where your company stands. Then, shop around and compare rates and terms from several lenders. If your business credit is in great shape, you may have no problems getting a business auto loan without a personal guarantee.\nIf your personal credit will be put on the line, consider the likelihood that your business will repay the debt on time. And if you have bad credit, ask yourself whether now is the right time to borrow or if it'd be better to wait until you can improve your credit score and reduce the loan's costs. END
 TITLE: Can You Apply for Two Credit Cards at Once? CONTENT: How Multiple Credit Card Inquiries Affect Your Credit Score\n-----------------------------------------------------------\nWhether you're trying to quickly build your credit or take advantage of various benefits or welcome offers, it can be tempting to apply for more than one credit card in a short period. But depending on your situation, it could have negative consequences for your credit score.\nWhen you shop around for a mortgage, auto loan or even private student loan, it's common to get quotes from multiple lenders to ensure you're getting the best terms. And if you do this within a short period—typically 14 to 45 days depending on the credit scoring model—all the hard inquiries that pop up on your credit reports will count as just one when calculating your credit score.\nWith credit cards, however, you won't get that same benefit. In most cases, each card account you apply for will result in a separate inquiry, and each will factor into your credit score.\nHow those inquiries affect your credit scores depend on the credit scoring model. With the FICO® Score☉ , for example, one additional inquiry will usually decrease your credit score by fewer than five points. However, multiple inquiries in a short period may have a compounding effect.\nWhat's more, data shows that people who have several inquiries on their credit reports in a short period are more likely to overextend themselves and default on their debts. As a result, even if your credit score doesn't drop by much, future creditors may offer you higher interest rates or deny your application altogether because of the added risk. END
 TITLE: Can You Apply for Two Credit Cards at Once? CONTENT: How Long Should You Wait Between Card Applications?\n---------------------------------------------------\nThere's no magic number for the amount of time you should wait before you apply for an additional credit card. In fact, the right amount can vary based on your credit history and situation: END
 TITLE: Can You Apply for Two Credit Cards at Once? CONTENT: Next Steps\n----------\nIf you're considering getting more than one credit card in the near future, you can check your FICO® Score to see where you stand. As you consider your situation, think about the benefits and drawbacks of having multiple inquiries on your credit reports in the short term. END
 TITLE: What to Consider Before You Get an Emergency Loan CONTENT: Steps to Getting an Emergency Loan\n----------------------------------\nIf you're experiencing a financial emergency, your first instinct may be to try to get cash as quickly as possible. But before you whip out your credit card or head down to get a payday loan, consider these steps. END
 TITLE: What to Consider Before You Get an Emergency Loan CONTENT: When Does It Make Sense to Get an Emergency Loan?\n-------------------------------------------------\nIf you don't have enough savings to cover an emergency expense, an emergency loan may be able to help you bridge the gap. Depending on your credit situation, however, some emergency loans could do more harm than good in the long run.\nIf your credit is in decent shape, you may be able to get a personal loan with a reasonable interest rate, but credit card cash advances are often cheaper than personal loans for bad credit. Even if you can qualify for a personal loan with a decent interest rate, it may still make sense to consider other options instead. END
 TITLE: What to Consider Before You Get an Emergency Loan CONTENT: Can I Get an Emergency Loan With Bad Credit?\n--------------------------------------------\nIt is possible to qualify for an emergency loan with bad credit. If you're hoping to qualify for a personal loan, though, your options will be limited. You can typically expect an interest rate upwards of 30% or even in the triple digits, depending on how messy your credit history is.\nIt's also possible to get a personal loan without a credit check. Some lenders use alternative credit data, such as bank account information, to determine your creditworthiness. Also, payday lenders and some bad-credit personal loan companies won't run a credit check, but their interest rates are often astronomically high, so the trade-off likely isn't worth it.\nWith a credit card cash advance, there's no additional credit check when you submit your request, so your credit score doesn't matter. END
 TITLE: What to Consider Before You Get an Emergency Loan CONTENT: What Are Other Ways to Access Funds Quickly?\n--------------------------------------------\nBefore you pull the trigger on an emergency loan, here are some alternatives that could save you money and make your life a little easier.\n*   **0% APR credit card**: If your credit score is considered good (that's a FICO® Score of 670 or higher), you may be able to qualify for a credit card that offers an introductory 0% APR. These promotions can last anywhere between six and 18 months, which gives you time to cover your expenses and pay off the balance interest-free. Just keep in mind that cash advances aren't included in a 0% APR promotion.\n*   **Medical bill repayment plan**: If your emergency involves medical bills, speak with the medical provider about payment plan options. Some will allow you to pay off your medical debt interest-free with predetermined installment payments.\n*   **Income-driven student loan repayment plan**: If you're considering an emergency loan to cover ongoing expenses, getting a break on your student loans may help the cause. If you qualify, your federal student loan may be eligible for an income-driven repayment plan that can reduce your monthly payments to a percentage of your discretionary income.\n*   **Personal loan from a family member or friend**: Asking family or friends for financial help can be tough. But if the alternative is high interest, crippling debt, it may be your best option. To avoid any future quarrel, iron out when you'll repay them and with what, if any, interest beforehand, and be sure to stay true to your word.\n*   **Home equity line of credit**: Also called a HELOC, this option typically comes with a low interest rate because it's secured by the equity you have in your home. The only catch is that you typically need to have a HELOC in place already to gain access to funds quickly—you may even get a debit card tied to the account that you can use to make purchases or get cash. If you don't have one, it can take a few weeks to close on a HELOC. Also keep in mind that if you don't pay back the loan as agreed, you could lose your home.\nAs you consider these options, think about your needs and the option that's best suited to solve your cash flow problem without putting you in a much more difficult financial spot going forward. END
 TITLE: What to Consider Before You Get an Emergency Loan CONTENT: Take Steps to Prepare for the Next Emergency\n--------------------------------------------\nIt's impossible to predict when emergencies will happen, so once you've managed to recover from the current one, take some steps to get ready for the next one.\nStart by budgeting money specifically for emergencies. Some banks may even allow you to open additional savings accounts for this purpose. If money is tight, you may not be able to save much, but any amount can make it easier to weather the next storm when it comes.\nAlso, work on improving your credit so that you'll have more financing options if you find yourself in the same position in the future. That includes checking your credit report to address potential issues and errors, paying your bills on time, keeping your credit card balances low and avoiding debt unless you absolutely need it.\nWhile these steps won't inoculate you from future emergencies, they can give you some peace of mind knowing you'll be more prepared for when they invariably occur. END
 TITLE: How to Pick the Right Credit Card for You CONTENT: Ask Yourself What Kind of Card You Need\n---------------------------------------\nThere are several types of credit cards from which you can choose. Regardless of which card you have in mind, make sure you meet its credit requirements and that its features work well with your existing lifestyle.\nIf you're planning to get a rewards credit card, for instance, it's a good idea to pick one that will give you the most points, miles or cash back based on how you spend your money. With so many types of credit cards available, it's important to narrow your search by knowing which features you're looking for.\nThe types of credit cards available include:\n*   Low interest credit cards\n*   Balance transfer credit cards\n*   Cash back credit cards\n*   Travel credit cards\n*   Secured credit cards\n*   Student credit cards\n*   Unsecured credit cards for bad or limited credit\n*   Store credit cards\n*   Small business credit cards\nHere's what you need to know about each card type before you make your pick. END
 TITLE: How to Pick the Right Credit Card for You CONTENT: For example, the Chase Freedom Unlimited® offers an intro $200 cash bonus after you spend $500 in the first 3 months, unlimited 1.5% cash back on all your purchases, and an intro 0% APR on purchases for 15 months. After the intro period ends, you'll be charged a standard APR of 14.99% to 23.74% (variable) depending on your creditworthiness. END
 TITLE: How to Pick the Right Credit Card for You CONTENT: Always Keep Your Credit Score in Mind\n-------------------------------------\nBefore you apply for any credit card, it's essential that you take a moment to check your credit score. The last thing you want is to apply for a credit card you don't qualify for and get an unnecessary hard inquiry on your credit reports. Hard inquiries typically have a temporary negative effect on your credit scores.\nIf you compare cards using Experian CreditMatch™, you can view the cards you have a good chance of being approved for based on your credit scores. Once you know which cards are within reach, it'll be easier to pick one based on your other criteria. END
 TITLE: Is It Safe to Store My Credit Card Information Online? CONTENT: What to Consider When Keeping Your Credit Card Information Online\n-----------------------------------------------------------------\nBefore you store your credit card information online, there are a few downsides to consider:\n*   **Potential for fraud**: While some websites and services claim to store your credit card information safely, the company that stores your data still may be vulnerable to a data breach. Even with security measures in place, storing your credit card information online will put you at increased risk of your card information being stolen and criminals using it for fraudulent purchases. Manually entering your card information when you make a purchase reduces the chance of it being compromised.\n*   **Ease of spending**: For many, it's easier to swipe a credit card than it is to part with cold hard cash, and the same is true for online shopping. When your credit card information is entered automatically, there's less of a barrier to prevent impulse purchases. It might sound silly, but the extra step of grabbing your wallet and manually entering your card details might be enough to stop at least some of those spontaneous \"buy now\" purchases.\n*   **The kid factor**: If you have young children, they may love to keep themselves entertained with your laptop, tablet or phone. If your payment information is stored in an app or website, you run the risk of young fingers making purchases, whether by accident or on purpose. Kids may be dextrous enough to buy a new game or rent a movie, but not mature enough to understand the cost associated with doing so. Parental controls are an option, but may be inconvenient and aren't foolproof. To avoid this possibility, you might consider removing stored payment information altogether. END
 TITLE: Is It Safe to Store My Credit Card Information Online? CONTENT: How to Keep Your Credit Card Information Safe\n---------------------------------------------\nWhile there's no absolute guarantee you can keep your credit card information secure, there are some measures you can take to help. They include:\n*   **Use virtual credit cards.** Your credit card issuer may be able to provide a virtual credit card, which is a temporary credit card you can use to make specific transactions (sometimes they're just one-time use, sometimes they can be used many times). While it's tied to your account, the purchase is not made using the number printed on your physical credit card. If a virtual card number is stolen in a breach, it may be useless if it has since expired or otherwise been deactivated. Ask your credit card issuer if they offer this feature.\n*   **Try security tools.** Again, no method is completely foolproof. But there are some security tactics you can use as a preventive measure, such as saving your credit card information in a browser such as Chrome rather than on individual websites that may be less trustworthy or more vulnerable to breach. You can also try a tool like LastPass, a password security and management program, which also offers a digital wallet to help keep your credit card information more secure online.\n*   **Shop only on private Wi-Fi networks.** Public Wi-Fi networks (like the one at your local coffee shop, for instance) can be easy targets for hackers looking to intercept your computer and steal sensitive information. If a hotspot has been compromised, your card data is at a higher risk of being stolen if you're connected to it when you make a purchase. Whenever you shop online, try to only do it on private, secure networks—ideally at home.\n*   **Stick to secure websites.** When you're shopping online, look for \"https\" or a lock icon at the beginning of the website's URL. Seeing \"http\" or \"Not Secure\" can indicate you're at higher risk. Secure websites use a higher level of digital security that can better protect you from hackers. Different web browsers may use varied language and symbols to indicate whether a website is secure, so be sure to understand what your browser is telling you. END
 TITLE: Is It Safe to Store My Credit Card Information Online? CONTENT: What to Do if You Suspect Credit Card Fraud\n-------------------------------------------\nIf you think your credit card has been used fraudulently, rest assured that credit cards come with certain legal protections that debit cards don't. Federal law says you aren't responsible for any more than $50 of a fraudulent credit card purchase, and many issuers actually have $0 liability policies in place.\nIn other words, if your card information is stolen and used for unauthorized purchases, you typically won't be required to pay anything for them. However, you should take these steps if you're a credit card fraud victim to protect your identity and finances:\n1.  Contact your credit card issuer. Let them know immediately that the card has been compromised. They will cancel the card and issue you a new one with different numbers. If you have automatic payments set up, be sure to update your payment information once you get your new card to avoid missing payments.\n2.  Change your passwords. If your credit card information was stolen through a data breach, changing your password can help secure your other digital accounts, especially if you use the same passwords for multiple accounts.\n3.  Check your bank account statements. Keep an eye out for additional fraudulent purchases that pop up on that or any other accounts.\n4.  Monitor your credit. Be sure to look out for unauthorized activity such as accounts opened in your name without your consent. It's possible the credit card fraud was an isolated incident, but in some cases it's part of a larger identity theft scheme. Fraudsters may try to open other new financial accounts in your name, incur debt and never pay it off, which can harm your credit if left unaddressed.\n5.  Consider a fraud alert. Putting a fraud alert on your credit report will ask creditors to authorize your identity before approving any new accounts. This helps prevent criminals from opening accounts in your name without your permission. END
 TITLE: Is It Safe to Store My Credit Card Information Online? CONTENT: Start Monitoring Your Credit Now\n--------------------------------\nDon't wait to become a fraud victim to start monitoring your credit. Signing up to monitor your credit preventatively can help you catch fraud and identity theft early. It will also help you track your credit over time and proactively address anything that causes it to decrease. END
 TITLE: What to Consider Before Canceling a Credit Card CONTENT: Follow These Steps Before Canceling a Credit Card\n-------------------------------------------------\nWhether you're canceling your credit card to eliminate the temptation to spend, get rid of a pesky annual fee or avoid carrying too many similar cards, here are some questions to ask yourself before you start the process.\n### 1\\. Am I Carrying a Balance on the Card?\nIt's best to pay off a credit card account in full—or transfer the balance elsewhere—before closing it. That way, you can wash your hands of the account completely.\nTo do this, stop using the card for new purchases and either transfer your current balance to a different credit card or pay it off altogether. Also, make sure there aren't any recurring charges that will hit the account after you've paid down the balance, which can delay the process.\n### 2\\. How Long Have I Had the Credit Card?\nThe age of your credit accounts is one of the factors that help determine your credit score. There are two elements that determine the length of your credit history: how long you've been using credit and the average age of your credit accounts.\nCanceling a credit card will affect the average age of your accounts, but not always immediately. An account in good standing will stay on your credit report for 10 years, and your payment history on that account will be factored into credit scores the entire time it remains. You might see credit score effects when it comes to length of credit history, however, since closed accounts aren't weighted as heavily as accounts you still use, and not every credit scoring model treats closed accounts the same way. Also, once it's closed, the account won't continue to age and increase your length of credit history any more than it already has.\nBefore closing a credit card that you have had for a long time, consider whether you really need to. If you don't use it and don't want to be tempted by it, store the card in a secure place or even cut it up.\nIf you're worried about potential fraud, some credit card companies allow you to freeze your card account via their mobile app, making it impossible for anyone to use it for new purchases.\nThat said, some credit card issuers may choose to cancel your card due to inactivity if you haven't used it in a while. The timeline can vary by issuer, but if you're not planning to cut up the card, consider using it to make a small purchase every six to 12 months and to keep it active.\n### 3\\. Is There an Annual Fee or Security Deposit?\nIf you're paying an annual fee on a credit card you don't use much, and don't feel you're getting enough value from the card's rewards or perks, it may make sense to cancel it.\nBut if the annual fee is the only reason you want to cancel the card, call your issuer and ask them if they can either waive the fee or convert the card to another one that doesn't carry an annual fee. This may allow you to keep the account open at no additional cost.\nIf you have a secured credit card and you've improved your credit score enough that you qualify for an unsecured card, consider asking the card issuer if you can get your deposit back but keep the account open.\nIf you can't get the card's annual fee waived, have it converted it to one with no annual fee or get your deposit back, canceling the card may be your best option.\n### 4\\. Will They Make Me a Counteroffer?\nIf you're considering closing your account, you can always call your card issuer and let them know—they may make an offer to try to get you to stay. They may say you're qualified for bonus rewards if you keep the account open and spend a certain amount within a set time period. Or you may score a lower interest rate or have your annual fee waived. There's no guarantee you'll get an offer, but it doesn't hurt to find out.\n### 5\\. How Will Closing This Account Affect My Credit Utilization Rate?\nA big factor in determining your credit score is your credit utilization rate, which is calculated by dividing your credit card's balance by its credit limit. That same calculation is also done using the sum of all of your credit card balances and credit limits.\nWhen you close a credit account, you decrease the amount of credit available to you, which increases your credit utilization rate across all of your remaining cards.\nFor example, if the total credit available to you across all your cards is $10,000, and your current balances amount to $2,000 a month, your utilization rate is 20%. But if canceling a card drops your total available credit to $6,000, and the total of your balances on your remaining cards stays at $2,000, your utilization rate will be 33%.\nCredit experts recommend keeping your utilization rate under 30%, and the lower, the better. If canceling a card, especially one with a high credit limit, would drastically increase your credit utilization rate, it may be a good idea to work on paying down your other card balances first to avoid a negative hit to your credit score.\nTo figure out your credit utilization rate:\n1.  Pull your most recent credit card statements.\n2.  Add up the statement balance for all your credit cards.\n3.  Check the limits on all your credit cards and add them up.\n4.  Divide the sum of your balances by the sum of your credit limits.\nWith this in mind, check to see how canceling one card will affect your utilization rate before you proceed.\n### 6\\. Do I Have Unused Rewards?\nDepending on the type of credit card you have, you may forfeit unused rewards if you close it. This is particularly true with cash back credit cards and cards that earn points or miles with a card issuer's proprietary rewards program—think American Express Membership Rewards and Chase Ultimate Rewards.\nIf you have a rewards balance, try to redeem what you have or figure out if you can transfer your points or miles to another card you may have in the same rewards program or to a spouse or partner.\nIf you have an airline credit card or a hotel credit card, all the rewards you earn are transferred to the frequent flyer or hotel rewards program of the co-branded partner. This means that if you close the account, it won't affect your rewards at all. END
 TITLE: What to Consider Before Canceling a Credit Card CONTENT: How to Close a Credit Card Account\n----------------------------------\nIf you've decided it makes sense to cancel a credit card, here are the steps you can take to complete the process.\n### 1\\. Check Your Rewards Balance\nIf you have a rewards card, check your rewards balance and read the fine print in your credit card agreement to find out what will happen to that balance if you close the account. Canceling a card may mean forfeiting your rewards, so if that's the case with your card, find a way to cash out before you proceed.\n### 2\\. Contact Your Card Issuer\nDepending on the company, you may be able to request to close an account via live chat or a secure online message, though some card issuers require you to call.\nAgain, the card issuer might try to entice you to stay with a counteroffer. But if you're sure you want to cancel the account, politely refuse and ask them to process the closure. Be sure to confirm that your account balance is zero.\nAt the end of the process, your card should be canceled immediately. They'll send you written notice of the card's cancellation that includes details of the closure.\n### 3\\. Consider Following Up in Writing\nIt's generally not necessary, but if you want to be sure, send the card issuer a short letter with your cancellation request.\nInclude your name, address, phone number and credit card account number, as well as information about your initial request to cancel the account. Keep a copy of the letter for your records.\n### 4\\. Destroy the Card\nEven if your account has been closed, it's in your best interest to make it impossible for anyone to use the card fraudulently. If it's plastic, cut it up with scissors or use a shredder. If it's metal or another hard material, ask the card issuer if it provides a card recycling service. If so, the issuer can send you an envelope you'll use to return the card to the issuer.\n### 5\\. Keep an Eye on Your Online Account\nAgain, the account has been closed, but it is possible for transactions to show up. This is especially common in the case of refunds. If you return an item you purchased with the card or the card issuer refunds a portion of your annual fee, it can show up as a credit. If this happens, contact the card issuer to ask for a refund check. END
 TITLE: What to Consider Before Canceling a Credit Card CONTENT: What Happens When You Cancel a Credit Card?\n-------------------------------------------\nAs previously mentioned, there are a couple of ways that closing a credit card account can impact your credit score. The first way concerns a card cancellation's effect on the average age of your accounts, which won't be immediate or drastic, but can hamper future credit score growth.\nThe second way is how it changes your credit utilization rate, which is something that can damage your credit score more quickly and significantly. Creditors typically report account activity monthly, so you may see a change as soon as the account is no longer reported as usual.\nKeep in mind, though, that your credit score may not be immediately impacted at all, especially if you have low balances on your other credit cards—an increase from 3% to 10%, for instance, likely won't make major waves.\nAlso, remember, card issuers usually report balance information monthly. So if your balances drop significantly from one month to the next, you could see your credit score bounce back. END
 TITLE: What to Consider Before Canceling a Credit Card CONTENT: Keep an Eye on Your Credit Report and Score\n-------------------------------------------\nCanceling a credit card may or may not affect your credit score, but it's important to go through the process thoughtfully and carefully to make the process go as smoothly as possible.\nAfter you close the account, check your credit report to confirm that the information regarding that closed account is accurate.\nAlso, keep an eye on your credit score to see how it changes once the closure goes into effect. It may take a month or so to update but check regularly to understand its impact and take further steps as needed to get your score back to where you want it to be. END
 TITLE: What Is Price Protection and Which Credit Cards Offer It? CONTENT: As the name suggests, price protection covers you if the price of an item drops after you buy it with your credit card.\nFor example, if you purchase the latest model iPhone shortly before a new one is announced and the price drops once the newest model goes on sale, you may be able to get a refund for the difference through your credit card's price protection. The perk is typically valid for a set period after you made the purchase—say 60 or 90 days—and usually limits how much of a refund you can qualify for per claim.\nNote that price protection isn't the same as purchase protection. The latter is a credit card benefit that provides coverage if an item you recently purchased with your card is stolen or damaged—again, within a certain period after you bought the item. END
 TITLE: What Is Price Protection and Which Credit Cards Offer It? CONTENT: Who Offers Price Protection?\n----------------------------\nIn the past, price protection was a mainstay among major credit cards. But recently, card issuers such as Chase and Citi have removed the benefit from some or all of their cards or decreased its value. This change coincided with the rise in services that automated the process, causing a spike in price protection claims for cardholders. With these services, a bot tracks your purchases and alerts you to price drops (some automatically file a claim), so you don't have to do it all manually.\nBut while price protection is no longer a given, it's still provided on some credit cards. Here's what to know about some of the options available:\n*   **Capital One® Platinum Credit Card**: Items are covered 60 days from the date of purchase. Claims are limited to $250 each, and you can file just up to four claims per 12-month period.\n*   **Wells Fargo Visa Signature® Card**: Items are covered 60 days from the date of purchase. You can be reimbursed for up to $250 per claim and up to $1,000 per year. END
 TITLE: What Is Price Protection and Which Credit Cards Offer It? CONTENT: How to Use Credit Card Price Protection\n---------------------------------------\nPrice protection can save you hundreds of dollars every year, but it's important to know what your card issuer requires to take advantage of the perk.\nFor starters, read the benefits guide for your credit card to understand what you need to file a claim, as well as the card's eligibility information and restrictions. You'll typically need the original receipt, billing statement showing the charge, and an original advertisement dated within the timeframe specified in the policy's terms.\nYou'll also need to file your claim within a certain number of days following the date of the advertisement.\nAlso, know what's covered and what isn't. It can vary by card, but some examples include cash-only and close-out sales, seasonal and discontinued items, motor vehicles, real estate, cellphone contracts and more.\nOne way to cut out some of the work is to sign up for a service like Sift or Earny. These apps can pull digital receipts from select retailers in your email inbox and compare prices, then file a claim on your behalf when they find a price drop. The service takes 25% of the reimbursement amount as payment, but that can be worth it if you don't want to deal with the hassle. END
 TITLE: What Is Price Protection and Which Credit Cards Offer It? CONTENT: Alternatives to Credit Card Price Protection\n--------------------------------------------\nYour credit card's price protection isn't the only way to ensure that you're getting the best available price. For example, Sift and Earny, as well as Paribus, which is owned by Capital One, also take advantage of retailers' price protection policies. (Note: Paribus doesn't charge a fee for its service.)\nSo even if your credit card doesn't offer the perk, you can still register and get refunds on price drops if you qualify for price protection with the services' participating retailers.\nAlso, some retailers offer to match a competitor's price, which can come in handy if you prefer a certain retailer over another, but their price for an item isn't the best available. Some retailers will even price match an item from a competitor after you've bought it, as long as it's within the predetermined timeframe.\nThe downside to working with retailer price protection and price matching policies is that you have to do a lot of the legwork on your own, which can be challenging and time-consuming. So it's definitely worth considering signing up for an app that will do the work for you, even if it charges for doing so. END
 TITLE: What Is Price Protection and Which Credit Cards Offer It? CONTENT: Focus on Credit Cards That Can Give You the Most Total Value\n------------------------------------------------------------\nCredit card price protection can be a nice perk to have, but it's far from the only feature you should consider when picking a credit card. If you find a card that's a great fit and it happens to offer the perk, try to take advantage of it, especially on larger purchases.\nBut focus on credit cards that can give you the best total package, including the welcome offer, the rewards program and perks. Also, run the numbers if the card has an annual fee to make sure you're getting enough net value versus a card that doesn't charge an annual fee.\nMissing out on price protection on your credit card can be a bummer. But as you shop around and compare rewards credit cards, remember that you can still get refunds on price drops through retailer policies, and with several price protection apps available, you don't even have to do anything to make it happen. END
 TITLE: Buying a Car: How Much Can You Afford? CONTENT: What Car Payment Can You Afford?\n--------------------------------\nGenerally, financial experts recommend keeping your monthly auto payment at or below 10% of your take-home pay. That's a good rule of thumb to get an idea of what to aim for, but it's crucial that you take a look at your own budget to get the right number.\nIf you already have a car payment, simply replacing it with an equal or lower monthly payment may be enough. But if you don't or you're looking at a pricier vehicle, you'll want to look at your income and expenses to determine what is the right car payment amount for your budget.\nIf your take-home pay or your expenses fluctuate from month to month, consider looking back on the last three to six months to see how much cash you have available to put toward a car payment.\nAlso, consider your other debts. If a significant portion of your monthly income goes toward debt, adding a car loan to the mix could make it challenging to get approved for credit in the future. That's especially the case if you're hoping to buy a house. Knowing your debt-to-income ratio and how it affects you can help you determine how much you can afford.\nIt's also important to look at the loan amount instead of focusing solely on the car payment, because the longer you're making payments, the more you'll pay in interest.\nFinally, keep in mind that you can reduce your monthly payment by making a down payment on the loan. The more money you put down, the less you need to borrow, giving you a more affordable monthly payment. END
 TITLE: Buying a Car: How Much Can You Afford? CONTENT: What Car Loan Can You Afford?\n-----------------------------\nThe terms of your car loan will influence how affordable it is for you. One factor that can change a loan's cost is the repayment term. Depending on the lender, typical loan terms range from 36 to 84 months.\nAs previously mentioned, choosing a longer repayment term may sound like a money saver because it reduces your monthly payment. But over time, you could end up paying a lot more in interest.\nFor example, let's say you qualify for a $30,000 loan at 5%. If you choose a 60-month term and make no down payment, your monthly payment will be $566, and you'll pay $3,968 in interest over five years.\nIf you opt for an 84-month period instead, it'll drop your monthly payment to $424, but you'll end up paying $5,617 in interest over the seven-year term—that's $1,649 more that you could spend on things that are more important to you.\nAnother significant factor in the cost of your loan is its annual percentage rate (APR). The APR determines how much interest you pay on top of the principal amount of the loan. If you have excellent credit, you can generally expect to pay less in interest. If your credit needs some work, however, you could end up with a double-digit APR and thousands more in interest charges.\nAs such, it's a good idea to check your credit score before you decide to buy a car. If you find that it's not where you want it to be, and you don't need to buy a car right now, consider taking some time to improve your credit before taking the next steps. END
 TITLE: Buying a Car: How Much Can You Afford? CONTENT: How Your Credit Score Affects Your Car Loan Affordability\n---------------------------------------------------------\nTo give you a better idea of how much you could save by building credit before you buy, here are some examples of average loan rates, term lengths and loan amounts on a new car for different credit score ranges based on Experian data as of the fourth quarter of 2018.\nScore Range\nAverage Loan Rate\nAverage Term Length  \n(in months)\nAverage Loan Amount\nTotal Interest Paid\n300-500\n14.9%\n72\n$26,400\n$13,700\n501-600\n12.2%\n73\n$29,400\n$12,400\n601-660\n7.9%\n73\n$33,100\n$8,700\n661-780\n5.0%\n70\n$33,500\n$5,200\n781-850\n4.2%\n63\n$31,700\n$3,700\nAs the table shows, you could potentially save thousands of dollars by increasing your credit score from one range to the next. Even improving your score from the mid-600s to 700-plus could garner you an interest rate 3 percentage points lower on a car loan—which could help you save over $3,000 in total interest.\nOf course, building credit can take time, especially if you have some negative items on your credit reports that are dragging down your scores. Here are a few steps you can take to get on the right track:\n*   **Check your credit reports**: Your credit scores are based on information found in your credit reports. By checking your credit report with Experian and the other credit bureaus, you can pinpoint the areas that need to be addressed. Also, check for potentially erroneous or fraudulent information that could be hurting your credit. If you find something you believe shouldn't be there, you can file a dispute with the credit reporting agencies.\n*   **Get caught up on payments**: If you have any credit accounts that you're behind on, get current on payments as quickly as possible and make on-time payments going forward.\n*   **Pay down your credit card balances**: If you have high credit card balances, paying them off can reduce your credit utilization rate and help improve your credit score.\nDepending on the factors that are influencing your credit scores, taking these steps can help improve your credit scores and help you establish a positive credit history over time. END
 TITLE: Buying a Car: How Much Can You Afford? CONTENT: How to Calculate Total Costs\n----------------------------\nWhen you start shopping for your next car, it's important to look at more than just the sticker price. If you live in a state that charges sales tax, for instance, expect that to add to the total cost of purchasing the vehicle.\nAlso, consider documentation fees, title and registration fees, and other expenses the dealer tacks on to the contract amount. If you choose to add a warranty or maintenance contract, that's also going to affect whether you can afford the car.\nYou don't have to pay these costs out of pocket—in general, dealers will roll them into the car loan along with the sales price of the car. But they will increase your monthly payment.\nIn addition to necessary taxes and fees associated with a car purchase, you'll also need to think about the cost of car insurance, annual car registration, ongoing maintenance and repairs, fuel and other related expenses that go along with owning a car. END
 TITLE: Buying a Car: How Much Can You Afford? CONTENT: How to Save When Buying a Car\n-----------------------------\nRegardless of your budget, here are some tips on how to save money when you're buying your next vehicle.\n### Buy Used\nThe average monthly loan payment for a used car is $161 cheaper than the average monthly payment for a new car, according to data from Experian Automotive. This savings adds up over the course of your loan to mean purchasing a used car instead of a new one could save you thousands of dollars.\nCars also depreciate over time, so the older the vehicle is, the less you'll pay. Just keep in mind that you'll want to balance the cost of the car and its reliability and safety. If you're not careful, you could save money on the purchase but end up spending thousands of dollars on repairs.\nBuying a certified pre-owned vehicle could be a good alternative if you're worried about the condition of a used car. These late-model cars get a thorough inspection and reconditioning from the dealer, who makes any needed repairs and adds a limited warranty. You get a near-new car but pay less.\n### Shop Around\nStart your car-shopping experience online by checking out multiple dealers in the area. If you already know what model you're looking for, run a search for it and compare prices.\nIf you're not sure what you want, this process can give you an idea of what prices to expect for different makes and models, and which may be the best fit for your budget.\nAlso, make sure to look up the value of the car on Kelley Blue Book or NADA Guides to get an idea of what the vehicle is actually worth. This may give you a bargaining chip with a dealer even if they're charging less than others in the area.\n### Don't Trade-In\nCar dealers will offer to buy your existing vehicle and apply its value as a trade-in to your vehicle purchase, similar to a cash down payment. This approach is convenient, but you'll usually get more money if you sell the car on your own and use the cash as a down payment on the new car.\nNot having another car to use in the meantime can make the process more challenging. But if you can, selling your car to a private party could make your new car more affordable.\n### Negotiate With the Dealer\nThe sticker price on a car is rarely non-negotiable. If you know how much the same make and model is going for with other dealerships and how much it's actually worth, you may be able to negotiate a deal with the salesperson.\nWhat's more, if you visit the dealership at the end of the month, quarter or year, they may be more willing to talk if they have sales quotas to fill.\nIn addition to the sales price, you may be able to negotiate on fees and add-ons, such as a warranty, maintenance contract and more. In a worst-case scenario, the dealer can say no. But if it works out, you could save hundreds or even thousands of dollars. END
 TITLE: Buying a Car: How Much Can You Afford? CONTENT: Focus on Your Credit for Long-Term Results\n------------------------------------------\nIf you're buying a car now, there are plenty of things you can do to save money. In the long run, though, the best thing you can do to save on credit is to improve your credit scores. Along with making payments on time and limiting your debt, consider using Experian Boost™† , which may be able to improve your FICO® Score☉ by including your on-time phone and utility payments.\nBuilding credit can take time, but your efforts can save you a lot of money long after you're done paying off your current car loan. END
 TITLE: How Does Health Insurance Work? CONTENT: What Are the Different Kinds of Health Insurance Plans?\n-------------------------------------------------------\nWhen you sign up for health insurance, you may be able to choose from several health care providers and different types of insurance plans. Before you do, it's important to understand the concept of a provider network.\nA provider network can be made up of doctors, hospitals, clinics, pharmacies and other service centers that the health insurance company either contracts with, employs or runs. Your health insurance plan might not cover any (or only cover part) of the cost if you receive care from out-of-network providers. However, there are generally exceptions for emergencies and urgent care.\nHealth insurance plans usually fall into one of the following types:\n*   **Health maintenance organization (HMO)**: With an HMO, you'll be limited to in-network providers. You'll also have a primary care doctor who manages your care and provides referrals if you want or need to see a specialist.\n*   **Point of service (POS)**: A POS also requires referrals from your primary care provider before it covers specialist visits. Unlike an HMO, a POS plan covers both in- and out-of-network providers, but you may still pay more for out-of-network care.\n*   **Exclusive provider organization (EPO)**: With an EPO, your health coverage is limited to in-network (or \"preferred\") providers. You might need a referral to see a specialist, but that's not always the case.\n*   **Preferred provider organization (PPO)**: The most flexible option, a PPO plan doesn't require a primary care doctor's referral to see a specialist and doesn't limit coverage to in-network providers. Although, as with a POS, costs could be lower with in-network providers.\n*   **Public programs**: There are also federal- and state-run health insurance programs that you may qualify for based on your age, health conditions, income or military service. These include Medicare, Medicaid, Children's Health Insurance Program (CHIP) and health care for veterans.\nIf you already have doctors, specialists or facilities you prefer, you may want to see which network or networks they're part of before signing up for a health insurance plan. Otherwise, you may need to switch medical service providers if you want your health insurance to help cover the cost. END
 TITLE: How Does Health Insurance Work? CONTENT: The Costs of Health Insurance\n-----------------------------\nThere are several important costs associated with a health insurance plan:\n*   **Premiums**: This is the monthly amount you pay for your insurance plan. If you have an employer-sponsored plan, your employer may pay all or part of the premium. If you purchase health insurance through an ACA Health Insurance Marketplace, you may qualify for a tax credit that lowers your out-of-pocket expense.\n*   **Deductibles**: Your plan's annual deductible is how much you'll have to pay for medical services (not premiums) before the insurer starts covering part of the cost. However, most health insurance plans offer free preventive care and annual checkups from in-network providers even if you haven't reached your deductible.\n*   **Copayment**: The amount you pay for certain types of services, such as a doctor's appointment, specialist visit or prescription. Copays are often flat fees, such as $40 per visit, and they might not count toward your deductible.\n*   **Coinsurance**: The amount—often a percentage—that you'll pay for services once you reach your deductible. For example, if an X-ray costs $300 and your coinsurance for that type of service is 20%, you'll pay $60.\n*   **Out-of-pocket maximum**: The most you'll have to pay for medical care in one year, including copays, coinsurance and your deductible. Once you reach the maximum, your insurance will pay for all your covered costs for the rest of the year.\nWhen choosing a health insurance plan, you may end up making trade-offs between the type of plan, premiums and other costs. For example, a PPO plan might be the most flexible, but it could also come with a premium that's higher than what would be charged for a comparable HMO or POS. In general, plans with higher premiums have lower deductibles, copayments and coinsurance amounts. END
 TITLE: How Does Health Insurance Work? CONTENT: You may be able to get health insurance through your employer, directly from the insurance company, through an agent or broker, or by purchasing a plan through Healthcare.gov or your state's Marketplace.\nYou can sign up for a new plan during open enrollment. For Medicare and Marketplace plans, this usually happens at the end of each year, but employers may set their own open enrollment periods.\nThere are also certain life events that qualify you for a special enrollment period, during which you can begin a new health care plan or make changes to an existing one. Commonly, this period lasts 60 days, and that's how long you'll have if you get your plan through the Marketplace, but it can vary. For example, some employers may give you just 30 days to make changes after a life event. Life events that can cause someone to qualify for this special enrollment period include:\n*   Getting married\n*   Having or adopting a child, or placing a child for foster care\n*   Losing health insurance because of a divorce or legal separation\n*   Moving\n*   Losing your current health insurance\nIn 2021, due to the coronavirus pandemic, the Marketplace is also providing a special enrollment period from February 15 to May 15.\nAdditionally, if you qualify, you can enroll in Medicaid and CHIP at any time, which may be a good option if you're unemployed, furloughed or had hours cut at work. END
 TITLE: How Does Health Insurance Work? CONTENT: How to Save Money on Health Insurance\n-------------------------------------\nHealth insurance can be expensive, particularly when you're looking for a family health insurance plan.\nIf your employer offers a health insurance plan and pays part or all of your premium, that may be the most straightforward way to save money. Some employers may also offer you a discount on your portion of the premiums if you participate in wellness programs.\nMarried couples can also save by getting their health care plan through one spouse's employer. Being added to a health care plan may cause one spouse to have more taken out of their paycheck to cover the additional coverage, but the other spouse's job may bump up their pay since they're choosing to decline health coverage benefits. It's common for couples to ultimately come out ahead financially in this scenario.\nIf you're buying a plan directly from a provider or through the ACA Marketplace, a broker may help you compare your options and find the best one. You may also qualify for a premium tax credit for ACA Marketplace plans, which can lower your out-of-pocket cost for premiums.\nNo matter how you purchase your insurance, you may be able to choose from several plans that differ in terms of their coverage amounts and premiums. All else being equal, choosing a plan with a higher deductible typically leads to lower monthly premiums, which could save you money depending on how much care you need in the coming year.\nYou could also save money on health care expenses by using a tax-advantage flexible spending account (FSA) or health savings account (HSA).\n*   **An FSA** is an employee benefit that lets you set aside pretax money for qualifying medical expenses. However, the account is managed and owned by your employer, and you may lose money if you don't spend what's in it before the end of the year.\n*   **An HSA** is portable, meaning you own the account and it's not tied to your employer. HSAs offer triple tax benefits, as you may get a deduction for the contributions, money can grow tax-free inside the account, and you don't have to pay taxes on withdrawals you spend on qualifying medical expenses. However, you need to have a high-deductible health plan (HDHP) to qualify for an HSA.\nWhile neither of these will lower your health insurance premiums, they can lead to lower overall health care costs.\nWith costs and complexity in mind, you may be thinking of going without health insurance entirely, but that has serious risks. Without health insurance, you'll have to cover more of your medical expenses out of pocket. And while there's no longer a federal fine for not having health insurance, several states impose a penalty unless you qualify for an exemption. Not having insurance can even negatively affect your health, as those without health insurance are more likely to be hospitalized for preventable health issues and have a higher mortality rate than those with insurance, according to the Kaiser Family Foundation. END
 TITLE: How Does Health Insurance Work? CONTENT: How Can Medical Bills Impact Your Credit?\n-----------------------------------------\nHaving a health insurance plan can save you money on medical expenses and help you better stay current on your bills. But you'll likely still have to pay for copays, coinsurance, deductibles and potentially out-of-network providers.\nUnpaid medical bills won't appear on your credit reports until after they're sent to collections, which can happen once the bill is 60, 90 or 120 days past due. During this time, you'll hopefully be able to work out payment details with the provider and your insurance. Even after medical debt is sent to collections, the three major consumer credit bureaus (Experian, TransUnion and Equifax) wait 180 days before adding it to your credit report.\nIf you want to keep an eye on your credit, you check and monitor your Experian credit report for free. END
 TITLE: Do You Need Cellphone Insurance? CONTENT: How Does Cellphone Insurance Work?\n----------------------------------\nYou may be able to buy cellphone insurance or protection plans through phone manufacturers, wireless carriers, insurance companies, retailers and other third-party providers. Insurance options tend to work in similar ways. Typically, you'll:\n*   **Pay a monthly premium** for the coverage, or prepay for a longer period.\n*   **Be covered for incidents** that may include accidental damage (even water damage), battery failure, theft and loss.\n*   **File a claim** after a covered incident. The insurance company may have a technician fix the phone, reimburse you for repair costs or ship you a replacement.\n*   **Pay a deductible for each claim**, which can depend on your insurance plan, phone and the type of incident. Deductibles could be up to several hundred dollars.\nAs you're considering your options, it's important to look at how each plan differs. For example, some options don't cover loss and theft, and many plans limit how many claims you can file. Also, you likely have your own unique coverage needs. Maybe you tend to drop your phone a lot, for instance, so you prioritize coverage for damage over a plan that has robust loss and theft coverage. END
 TITLE: Do You Need Cellphone Insurance? CONTENT: How to Decide Whether You Need Cellphone Insurance\n--------------------------------------------------\nDeciding whether you need cellphone insurance can be difficult, especially when being without a working phone can really complicate life. But the most common types of damage won't necessarily leave you without a phone.\nA 2018 survey from SquareTrade, an Allstate company that offers protection plans, found that 66% of smartphone owners damaged their phones during the previous year. However, cracked and scratched screens were the most common types of damage, and over a third of smartphone owners report they didn't get their screens fixed.\nOne of the most important questions you may want to ask yourself is how much replacing your phone will cost. If you're the type of person who always has the latest-edition smartphone, an insurance plan that includes loss and theft coverage may be worthwhile. But if you tend to rock a phone from a few years ago or opt for budget models, it might not be worth paying for insurance. Plus, older and less-expensive phones can also be cheaper to fix.\nAnother important consideration is who will be using the covered phone—or phones. Insurance might make sense if you're accident-prone or tend to be forgetful, or if you're buying insurance to cover a teen's smartphone. A cellphone insurance plan might also get a lot of use if there are kids in the house who see a cellphone as a plaything. END
 TITLE: Do You Need Cellphone Insurance? CONTENT: Cellphone Protection Plans by Providers and Phone Makers\n--------------------------------------------------------\nYou'll want to compare cellphone protection plans and insurance options as soon as you get a new phone or change carriers. Some options are only available within 30 or 60 days of making a purchase or activating your services.\nYou may be able to secure coverage in a variety of ways, including through your wireless provider. In many cases, though, the company you buy coverage from and pay your premiums to is acting as an intermediary between you and the actual insurance company.\nFor example, if you buy cellphone insurance through AT&T, Verizon, T-Mobile, Amazon, Best Buy, Costco, Samsung or many other phone retailers and cellular service providers, you might wind up filing a claim with either Asurion or Assurant—two popular insurance companies.\nBut even when the insurer is the same, the plan options and costs could be different. For instance, the amount you'll pay out of pocket before coverage kicks in (your deductible) can vary greatly from one plan to another. Here's a quick look at some of the popular options:\n*   **AppleCare+**: Apple offers two extended warranty programs for its iPhones. AppleCare+ covers up to two incidents of accidental damage every 12 months with a $99 service fee ($29 for screen damage) per claim. There's an optional AppleCare+ with Theft and Loss coverage, which has a $149 deductible per theft or loss claim.\n*   **AT&T**: AT&T offers a mobile insurance plan that costs $8.99 per mobile number, has a $49 screen repair deductible and allows for up to two claims every 12 months. There are also protection plans for either one device or up to four devices that allow for more claims, have a lower screen repair deductible and come with extra benefits. Both options include loss and theft coverage.\n*   **Samsung Care+**: The Samsung Care+ coverage will cost $3.99, $8.99 or $11.99, depending on the device you're covering. The program allows for up to three accidental damage claims per 12-month period, and there's a $29 cracked screen repair deductible. However, coverage for loss and theft isn't included.\n*   **Squaretrade**: One of the most popular third-party providers, Squaretrade has individual device plans for $8.99 a month per device (up to five) and family plans (up to four devices) for $19.99. You can enroll at any time and protect new or used devices. You can file up to four claims (eight with the family plan) per plan, but there's a $149 deductible per claim and loss and theft aren't covered.\n*   **T-Mobile**: T-Mobile has a basic device protection plan and a Protection <360> plan, with the monthly costs and deductibles varying depending on the plan type and device. The basic plan covers hardware servicing, accidental damage, loss and theft, while the upgraded plan includes unlimited screen repairs, AppleCare services for Apple devices and other benefits.\n*   **Verizon**: Verizon offers seven types of plans, ranging from a basic extended warranty to a multi-device plan that comes with identity theft monitoring. Most options include loss, theft and damage coverage, along with battery replacements and unlimited cracked screen repairs (with $29 deductibles). However, the monthly cost and deductibles can depend on the type of device, and how many devices you have (for multi-device plans). END
 TITLE: Do You Need Cellphone Insurance? CONTENT: Alternatives to Cellphone Insurance\n-----------------------------------\nPurchasing a cellphone insurance or protection plan isn't the only way to protect your purchase. Here are some other options that you might want to use instead of—or in combination with—a cellphone insurance policy. END
 TITLE: Do You Need Cellphone Insurance? CONTENT: Compare Your Options and Run the Numbers\n----------------------------------------\nThere are a few situations when you definitely don't need cellphone insurance. For example, when replacing your phone costs about the same as the deductible. But for many people, having an insurance policy might save them a lot of money—which can make it harder to decide whether it's a good idea.\nUltimately, you might decide against insurance and simply commit to being careful. Some extra gear can help too—a case and screen protector won't protect your smartphone from everything, but a modest investment in protective gear could help prevent cracks and scratches, two of the most common types of damage.\nIf you're considering buying a policy, first look at your insurance and credit card benefits to see if you already have enough coverage. If not, compare the insurance plans' coverages, premiums and deductibles. Then, consider the financial impact of paying for insurance versus replacing or repairing your phone, and decide what makes the most sense for your household. END
 TITLE: How Common is Tax Identity Theft? CONTENT: Tax identity theft is generally less common than other types of identity theft and fraud, such as someone stealing and using your credit card account or opening a new credit account using your identity.\nTax identity theft has also decreased in prevalence over the past few years. In part, this is due to a joint effort by the IRS, state tax agencies, private tax preparation companies, tax professionals, payroll processors and financial institutions. Together, they formed a Security Summit in 2015 to fight refund fraud—which is often perpetrated by organized crime syndicates.\nFrom 2015 to 2019, there was an 80% decline (677,000 to 137,000) in the number of taxpayers who filed IRS identity theft affidavits—a form you attach to your tax return if you're the victim of tax identity theft. For context, the IRS processed 155,611,000 returns from individual taxpayers in 2019, as of December 27 of that year.\nIn addition to responding to taxpayers who report being victims of identity theft, the IRS actively identifies suspicious returns. It then reaches out to taxpayers to confirm their information before continuing to process the return. In 2019, the IRS says it stopped 443,000 confirmed fraudulent returns (which would have resulted in $1.9 billion in refunds) from being processed.\nEmployment or tax-related fraud did see an increase in 2020, according to the FTC, but the number of fraud reports remains below 2016 levels. Several other types of fraud also saw increases from 2019 to 2020, with the increase in government benefit fraud especially dramatic. END
 TITLE: How Common is Tax Identity Theft? CONTENT: What Are Some Signs of Tax Fraud?\n---------------------------------\nCommons signs that you may be a victim of tax identity theft include:\n*   The IRS rejects your e-filed return because your SSN has already been used to file a tax return.\n*   The IRS sends you a tax transcript. Or, you receive a notice that an online account has been created, accessed or disabled when you didn't take any action.\n*   The IRS sends you a notice saying you owe taxes, your refund is offset or they're taking collection actions against you because of a tax return from a year when you didn't file.\n*   Your state unemployment agency sends you a Form 1099-G, but you didn't collect unemployment.\n*   You receive tax forms, such as a W-2 or 1099, from a company you didn't work with during the year.\n*   If the IRS suspects your identity has been stolen, the agency may send you a letter asking you to verify your identity and confirm that the tax return they received is correct. END
 TITLE: How Common is Tax Identity Theft? CONTENT: What to Do if You're the Victim of Tax ID Theft\n-----------------------------------------------\nFortunately, tax identity theft won't lead to losing a tax refund if you're owed one. It can, however, result in delays as you work with the IRS or state tax agencies to resolve the issue.\nWhen you're the victim of tax identity theft, your next steps will depend on how the fraud was noticed.\nIf you're alerted to the fraud because the IRS sent you a letter, follow the included instructions and call the IRS to confirm your identity. After confirming your identity, you can verify whether you filed the return. It can then be processed or removed from the system, allowing you to file an accurate tax return.\nHowever, if you find out when you try to e-file your tax return and it's rejected due to a tax return already being filed with your SSN, you can file a paper tax return with an attached identity theft affidavit form. The IRS will then assign you to the Identity Theft Victim Assistance organization and work with you to understand your situation and resolve the issue(s).\nOther situations may dictate a different response. For instance, when you suspect someone used your information to claim unemployment, reach out to your state unemployment agency and request a corrected Form 1099-G. Even if your state doesn't get back to you before the federal tax filing deadline, you can still file a tax return and don't need to include an identity theft affidavit form.\nNo matter how you found out about the identity theft, you may want to file an identity theft report with the FTC. The agency will then create a personalized recovery plan based on your situation. END
 TITLE: How Common is Tax Identity Theft? CONTENT: Protect and Monitor Your Identity\n---------------------------------\nIn addition to tax ID theft, there are other types of tax-related fraud you should have on your radar. For example, if someone uses your SSN to get a job and their employer reports the income to the IRS, you could receive a notice from the IRS when that income isn't included in your tax filing. Fraudsters may also impersonate an IRS agent, and then either demand payment from you or ask for your personal information.\nThankfully, there are steps you can take to help protect yourself from fraud and make recovery easier if it does happen. Beginning in 2021, the IRS allows anyone to request an Identity Protection PIN (IP PIN). After applying online and passing a rigorous verification process, the IRS will mail you your IP PIN for the year.\nYou (or your tax preparer) can then add your IP PIN to your electronic or paper tax return. The IRS will automatically reject tax returns that have your information, but don't have the correct IP PIN.\nIdentity theft could impact more than your taxes as well. You could lock or freeze your credit reports to help keep identity thieves from using your personal information to open new credit accounts. Identity theft protection programs, including Experian IdentityWorksSM Plus, can alert you if your information is compromised and help you quickly respond. END
 TITLE: What Is the Easiest Credit Card to Get With Fair Credit? CONTENT: What Credit Cards Can I Qualify for With Fair Credit?\n-----------------------------------------------------\nCredit card companies may consider multiple factors when reviewing your card application, including your credit report, income, monthly bills and history with the card issuer. Your credit score can also be an important factor, and if you have a fair credit score, you may want to start by looking for one of these types of cards:\n*   **Secured credit cards**: Secured credit cards can be good for building or rebuilding your credit. You need to send the card issuer a security deposit to open your card, which will generally set your card's credit limit. To limit their risk, the issuer can hold on to the deposit if you fall behind on your bill.\n*   **Student credit cards**: Student credit cards can be easier to qualify for than other cards, as it's understood that many students don't have a credit history or high income. However, you'll typically need to be a college student to qualify.\n*   **A card from your bank or credit union**: If you have an established relationship with a bank or credit union, you may want to ask about what credit cards it offers. Sometimes, you may be able to get approved based on your account balances and history with the financial institution, even if you don't meet the standard credit score requirement.\n*   **Retail store cards**: Retail or store cards are often easier to qualify for than more general-use rewards cards. However, you might only be able to qualify for a closed-loop card, which can only be used at the associated brand's stores. An open-loop store card can be used anywhere the card's payment network (Visa or Mastercard, for instance) is accepted, and might have added perks when used with its associated retailer.\nIf you're able to qualify for a credit card with a fair score, you might not get a card that has a high credit limit or low ongoing interest rate. However, raising your score to the high end of the fair range—say 640 to 669—could expand your prospects to general-use unsecured rewards cards and cards with promotional interest rate offers.\nWhile the \"easiest\" card to get will depend on your specific credit score and overall creditworthiness, here are a few credit cards that could be good picks for applicants with fair credit.\n*   **Capital One QuicksilverOne Cash Rewards Credit Card****.** Earn 1.5% cash back on every purchase with this unsecured credit card. There's a $39 annual fee, but you may be eligible for a credit limit increase in as little as six months.\n*   **Journey Student Rewards from Capital One.** This is an unsecured no-annual-fee card with 1% cash back on all purchases, which can be boosted each month to 1.25% cash back if you pay your bill on time. Cardholders also get a $5 credit per month credit for 12 months on select streaming services.\n*   **Petal® 1 \"No Annual Fee\" Visa® Credit Card****.** As the name states, there's no annual fee on this unsecured credit card. You can earn up to 10% cash back at select merchants, and can use your banking history to help you qualify for the card.\nConsider the cards within each type and narrow in on which specific one could be best for you. If you're planning on making a large purchase, a card with an introductory 0% interest rate offer might be best. But if you want something to use for everyday purchases, a rewards card may be more appealing. END
 TITLE: What Is the Easiest Credit Card to Get With Fair Credit? CONTENT: *   **Capital One QuicksilverOne Cash Rewards Credit Card****.** Earn 1.5% cash back on every purchase with this unsecured credit card. There's a $39 annual fee, but you may be eligible for a credit limit increase in as little as six months. END
 TITLE: What Is the Easiest Credit Card to Get With Fair Credit? CONTENT: *   **Journey Student Rewards from Capital One.** This is an unsecured no-annual-fee card with 1% cash back on all purchases, which can be boosted each month to 1.25% cash back if you pay your bill on time. Cardholders also get a $5 credit per month credit for 12 months on select streaming services. END
 TITLE: What Is the Easiest Credit Card to Get With Fair Credit? CONTENT: *   **Petal® 1 \"No Annual Fee\" Visa® Credit Card****.** As the name states, there's no annual fee on this unsecured credit card. You can earn up to 10% cash back at select merchants, and can use your banking history to help you qualify for the card. END
 TITLE: What Is the Easiest Credit Card to Get With Fair Credit? CONTENT: What to Do if You're Denied for a Credit Card\n---------------------------------------------\nCredit card issuers generally check your credit before approving you for a card, and each credit check can lead to a hard inquiry, which could hurt your credit scores a little. With this in mind, you don't necessarily want to keep submitting new applications if your first one is denied. Instead, one of the first steps you might want to take is to call the card issuer and ask if there's anything you can do to help resolve the issue.\nFor example, if the card issuer couldn't access your credit report because your credit was frozen, you might get approved after temporarily lifting the freeze. Or, perhaps you have other credit cards from the same company and there's a limit on the amount of credit they're willing to extend to you. In this case, you may be able to work with the card issuer to reduce your available credit on your existing cards and make way for the new card.\nWhen there's no recourse, you could focus on improving your creditworthiness before applying for a new card.\nIf your credit score impacted the decision, the credit card issuer must send you an adverse action letter. The letter should tell you about your right to request a free copy of your credit report within 60 days of an adverse action. You can check your Experian credit report online.\nThe adverse action letter will also show you which credit score the lender used to make the decision and list four to five credit score risk factors. These are the primary reasons—in order—that your credit score wasn't higher. From there, you could take steps to improve your credit. END
 TITLE: What Is the Easiest Credit Card to Get With Fair Credit? CONTENT: How to Improve Your Fair Credit Score\n-------------------------------------\nImproving your credit score could be one of the keys to getting approved for more credit cards, and there are few important steps you can take:\n*   **Pay down credit card debt.** If you have credit card debt, paying down your balances could help lower your credit utilization ratio and increase your scores.\n*   **Pay off past-due accounts.** If you have accounts that are currently past due, bringing the account current could help your score. And regardless of any effects past-due accounts have on your credit score, card issuers might deny your application if you have an account with the issuer that's past due or over its credit limit.\n*   **Make on-time payments.** Paying your monthly bills on time can help you build a positive credit history and increase your credit scores.\n*   **Look for errors in your credit reports.** Look for erroneous negative information in your credit report. You can file a dispute to have incorrect information removed so it can't hurt your credit scores.\nImproving your credit scores can take time, but it's well worth the effort. Good credit can help you qualify for more favorable rates and terms on loans, and, in many states, even save you money on insurance. END
 TITLE: What Is the Easiest Credit Card to Get With Fair Credit? CONTENT: Check Your Credit Score and Get Matched to Card Offers\n------------------------------------------------------\nBefore applying for a credit card, you may want to check your credit to see where you stand. Experian lets you check your credit report and FICO® Score 8 for free. And after logging in to your Experian account, you can also use the Experian CreditMatchTM tool and see which cards you're matched with from Experian's credit card marketplace.\nIf you're not sure you can qualify for a credit card and want to avoid a rejected application, you might look into prequalification. In this process, you'll submit some information about yourself and a card issuer will show you the cards you might be able to qualify for. There's no harm to your credit, but prequalification is also no guarantee you'll be approved. END
 TITLE: Which Credit Scores Do Mortgage Lenders Use? CONTENT: What Scores and Models Are Used When Applying for a Mortgage?\n-------------------------------------------------------------\nFICO® created different scoring models for each credit bureau—Experian, TransUnion and Equifax. The commonly used FICO® Scores for mortgage lending are:\n*   **FICO® Score 2**, or Experian\/Fair Isaac Risk Model v2\n*   **FICO® Score 5**, or Equifax Beacon 5\n*   **FICO® Score 4**, or TransUnion FICO® Risk Score 04\nMortgage lenders will often get a single report that contains your credit reports from each of the three credit bureaus and the associated FICO® Scores. It may base the lending decision on your middle credit score or, if you're applying jointly with a partner, the lower middle score.\nKeep this in mind when you're trying to figure out what credit score you need to get a mortgage. If you're looking for a mortgage that requires a minimum credit score of 580, you may need your middle score to be at least 580 based one these specific FICO® Score models.\nThere are exceptions, though. Mortgage lenders could use different credit scoring models for loans that aren't secured or bought by Fannie Mae or Freddie Mac. You might even be able to get a mortgage if you don't have a credit history or score at all.\nAdditionally, there's a review underway that could open up the use of different credit scoring models for mortgages, even if they're secured or bought by Fannie Mae or Freddie Mac. However, until there's a change, many mortgage lenders will continue to use these three classic FICO® Scores. END
 TITLE: Which Credit Scores Do Mortgage Lenders Use? CONTENT: What Else Do Mortgage Lenders Look at to Determine Mortgage Terms?\n------------------------------------------------------------------\nYour credit scores can be an important factor in getting approved for a mortgage and the rates you're offered. However, mortgage lenders also go beyond your credit scores when evaluating a potential borrower's application.\nThey'll also take a close look at the information within your credit reports—not just your scores. For example, even if you have a good credit score, the lender might deny your application if you recently filed for bankruptcy or had a home foreclosed on. Or if you owe too much money to collection agencies.\nMortgage lenders may also request various financial records, including recent bank statements, investment account statements, tax returns and pay stubs. They can use these to determine your income, debts and debt-to-income ratio, which can be an important factor.\nOther factors, such as the loan amount, the home's location, your down payment and loan type can all play into whether you'll be approved and your mortgage's terms. Lenders may also have unique assessments, which is one reason shopping for a mortgage can be important. END
 TITLE: Which Credit Scores Do Mortgage Lenders Use? CONTENT: Improve Your Credit Scores Before Applying\n------------------------------------------\nThe FICO® Score versions used in mortgage lending and the more recently released versions, such as FICO® Score 9 and 10, have the same 300 to 850 range. VantageScore, a competing maker of credit scores, also uses that range for its latest VantageScore 3.0 and 4.0 model credit scores.\nFor all these scoring models, which use the information from one of your credit reports to determine your score, a higher score is better. As a result, you may notice similar trends in all your scores. This is why making on-time payments can help raise all your credit scores, while missing payments could hurt all your scores.\nHowever, there are also differences between the scoring models. For example, the latest FICO® and VantageScore models ignore paid collection accounts and give less weight to medical collection accounts. But the older FICO® Score models continue to count collection accounts against you after you pay off the balance.\nIn general, whether you're looking to buy a home or take out a different type of credit, there are a few things that can help improve all your scores:\n*   Pay your bills on time.\n*   Pay down credit card balances.\n*   Don't apply for other types of credit in the months leading up to your mortgage application.\nIn addition to getting your credit ready for a mortgage application, you want to get your finances in order as well. Saving up for a larger down payment, increasing your income and paying off debts may all help you qualify for a mortgage with better terms. END
 TITLE: Which Credit Scores Do Mortgage Lenders Use? CONTENT: Check Your Credit\n-----------------\nMost services that offer free credit scores don't give you the classic FICO® Scores that mortgage lenders generally use. For example, you can check your FICO® Score 8 for free from Experian. Or, if you have an Experian CreditWorks℠ Premium membership, you can get multiple FICO® Score versions, including the FICO® Score 2 from Experian. END
 TITLE: Should I Buy Mortgage Points? CONTENT: How Do Mortgage Points Work?\n----------------------------\nMortgage points work differently depending on the type of mortgage point you're talking about:\n*   **Origination points** may be one of the closing costs you pay your mortgage lender. The points are a one-time fee, which is often based on a percentage of the total loan amount. You can try to negotiate origination points and compare lenders, as some may offer a loan with fewer (or no) origination points.\n*   **Discount points** are mortgage points that you purchase to get a lower interest rate on your loan. Each point costs 1% of the loan amount, and you pay the fee with your closing costs. Buying points can save you money overall because your monthly payment and interest costs will decrease.\nAs we go over mortgage points below, we'll be specifically addressing discount points. Origination points can be much easier to compare and understand—figuring out when to purchase discount points isn't as straightforward. END
 TITLE: Should I Buy Mortgage Points? CONTENT: How to Calculate Mortgage Points\n--------------------------------\nYou'll want to figure out the break-even point when you're trying to decide if you should buy mortgage points. This is the point at which the upfront cost you pay to lower your interest rate is matched by the interest savings that result.\nGenerally, each point will cost 1% of the loan amount and will decrease the mortgage's interest rate by 0.25%. We'll use these amounts for the calculations made below, but know that some mortgage lenders may use a different price point or reduction amount.\nRegardless of the cost and rate change, a straightforward way to find your break-even point is to divide the cost of the mortgage points by your monthly savings.\nFor example, if you get a $300,000 mortgage, each discount point costs $3,000. If buying a point on your 30-year mortgage means the interest rate changes from 4.5% to 4.25%, then your monthly payment decreases by about $44 (from around $1,520 to $1,476). Your break-even point is 3,000 divided by 44, which is about 68 months.\nPurchasing more points could significantly decrease your monthly payment, although it might not change your break-even point much. Purchasing three points for $9,000 will decrease your monthly payment by $131 (from about $1,520 to $1,476). However, the break-even point only increases by one month.\nOther factors can also impact your break-even point. For example, you may be able to finance the discount point purchase, but doing so could extend your break-even point due to interest. Additionally, if you purchase points with an adjustable-rate mortgage, the lower interest rate might only apply to the initial fixed-rate period.\nPurchasing points is essentially prepaying interest, which means it may be a tax-deductible expense. If you meet the IRS' requirements, you may be able to take the full deduction in the first year. Otherwise, the deduction will be spread out over the lifetime of the loan. In either case, whether this alters your calculations depends on your overall financial and tax situation. END
 TITLE: Should I Buy Mortgage Points? CONTENT: Scenarios Where Buying Mortgage Points May Make Sense\n-----------------------------------------------------\nUnderstanding how much points cost, the impact on your monthly payments and your break-even point is a good place to start. From there, you can consider your specific situation to determine if buying points is a smart idea.\nGenerally, buying mortgage points could make sense when:\n*   You plan on living in the home beyond the break-even point.\n*   You likely won't benefit from refinancing your mortgage before the break-even point.\n*   Buying points won't strain your finances.\nHowever, if you need the cash for other expenses—such as moving, remodeling or monthly bills—you want to make sure buying points won't leave you in a bind. Additionally, if you plan on selling the home soon, or you think you might refinance, the savings from buying a lower interest rate will be limited.\nIn fact, if you suspect you might not stick with the same mortgage for long, it could make more sense to ask for lender credits rather than buying mortgage points. Lender credits could basically be seen as _selling_ points rather than buying them, because the lender pays you to accept a higher interest rate. It can make sense if you're having trouble affording a down payment or the closing costs. Or if you suspect you may move or refinance soon. END
 TITLE: Should I Buy Mortgage Points? CONTENT: You can buy mortgage points by making an arrangement with your lender before the loan closes. The fee for the points will be paid directly to the lender as part of your closing costs.\nWhen you receive the Loan Estimate document for your mortgage, you'll see the mortgage points separated as a line-item cost on the top left of page two. If your Loan Estimate shows that you're paying points and you didn't expect or want to, ask your lender about other options. They may be able to offer you a mortgage without points, but expect a higher interest rate in exchange. END
 TITLE: Should I Buy Mortgage Points? CONTENT: Additional Ways to Lower Interest Rates or Costs on Your Loan\n-------------------------------------------------------------\nBuying mortgage points isn't the only way to lower your mortgage's interest rate or how much you pay in interest overall. Here are some additional options you'll want to look into:\n*   **Shop lenders and loan types.** It can pay to get offers from multiple mortgage lenders, as each lender may have its own method for determining the interest rate it will offer you. Additionally, your rate could depend on the type of mortgage you get and whether it has a fixed or adjustable rate. Shop around to see which ones you'll qualify for and which will be best.\n*   **Increase your down payment.** While you'll need to come up with extra cash for a large down payment, doing so could lead to a smaller loan amount and lower interest rate. Putting at least 20% down can also help you avoid paying for mortgage insurance, which can lower your monthly payment.\n*   **Decrease the loan's term.** If you can't afford a higher upfront cost but could take on a larger monthly payment, a shorter repayment term can lead to a lower interest rate.\n*   **Find a less expensive home.** Buying a cheaper house is another way to reduce your monthly payment and down payment amount.\nOnce you have a mortgage, you may be able to refinance to get a lower interest rate. Or, if your lender allows it, you could make bimonthly payments to decrease how much interest accrues overall. END
 TITLE: Should I Buy Mortgage Points? CONTENT: Improve Your Credit to Save Money\n---------------------------------\nYour credit scores can greatly affect your ability to get a mortgage and the interest rate you'll receive on a new loan or when refinancing. You can check one of your credit scores, a FICO® Score☉ 8, for free from Experian.\nHowever, mortgage lenders will likely use different FICO® Scores to evaluate your application. With Experian CreditWorks℠ Premium, which charges a monthly fee, you can also view the FICO® Score 2 score based on your Experian credit file as well as the factors affecting it. You can then start using this information to improve your credit scores and get your credit ready for a mortgage. END
 TITLE: The Fed Cut Rates—Here’s Why That’s Important CONTENT: How Could a Rate Cut Affect Your Savings?\n-----------------------------------------\nThe interest you receive on money that's held in a savings, money market and checking accounts may be tied to the Fed funds rate. A rate cut could, therefore, lead the bank to lower the interest you receive on your savings. Some banks might react right away, while others may take a few weeks to lower their rates, but many will lower their rates in response to a Fed rate cut.\nIf you already have money in a certificate of deposit (CD) with a fixed rate, your rate is locked in for the duration of the CD's term. If you don't, opening a CD could be a good option for short-term saving that will net more interest than a basic savings account, although their rates may already reflect the lowered Fed rate. Generally, you have to agree to keep your money in the account for a certain period or pay an early withdrawal penalty. However, some banks offer CDs that don't have an early withdrawal penalty. END
 TITLE: The Fed Cut Rates—Here’s Why That’s Important CONTENT: How Might a Rate Cut Affect Credit Cards?\n-----------------------------------------\nMost credit cards have a variable interest rate that's tied to a benchmark rate called the prime rate. The prime rate is, in turn, influenced by the Fed funds rates. As the benchmark rises or falls, credit card interest rates on purchases, balance transfers and cash advances follow.\nWhile the Fed rate cut may lead to lower credit card interest rates, a slight change won't make much of a difference for borrowers in the short term. For example, a 2% interest rate discount only saves you about $5 a month on a $3,000 balance.\nIf you anticipate needing to carry a credit card balance, consider contacting your credit card issuer to negotiate a lower interest rate in addition to the variable-rate drop. Although credit card issuers tend to get more stringent with new account openings during an economic downturn, you could also look for a new card that has a promotional introductory 0% rate. END
 TITLE: The Fed Cut Rates—Here’s Why That’s Important CONTENT: How Could a Fed Rate Cut Affect Mortgages?\n------------------------------------------\nRate cuts can be a mixed bag for those who want to buy a home or currently have a mortgage.\nIn the immediate aftermath of a rate cut, a rush of mortgage applications from people looking to buy a home or refinance their current mortgage can lead to a backlog of applications—and that sometimes results in lenders increasing rates. As the demand dies down, mortgage rates may fall in correlation with the Fed rate's decrease.\nIf you're interested in buying a home, make sure your credit and finances are in order to take advantage of potentially lower rates. Those who currently have a fixed-rate mortgage could keep an eye on refinance rates to see if it makes sense to refinance.\nHomeowners who have a variable-rate mortgage, such as an adjustable-rate mortgage (ARM) or home equity line of credit (HELOC), may see their rates and payments drop. It's good news, for now, but remember that rates can also increase in the future.\nIf you have a variable-rate loan, consider how long you have left to repay the loan and when you plan to move. With lower rates, it might make sense to refinance with a fixed-rate mortgage or home equity loan. It's not always an easy calculation, though, as you may have to pay closing costs when refinancing, which could cut into your savings. If you plan to be in your home for many years, the stability of a fixed-rate mortgage could give you peace of mind and save you money over time considering the current interest rates. END
 TITLE: The Fed Cut Rates—Here’s Why That’s Important CONTENT: How Could a Rate Cut Affect Other Types of Loans?\n-------------------------------------------------\nThe impact on other types of loans will depend on whether the loan has a fixed or variable rate and, if it's a variable rate, which benchmark rate the creditor uses.\nIf you have variable-rate loans, you may see your interest rate and monthly payment decrease. However, most personal loans, auto loans and student loans carry fixed rates. If you currently have these types of debt, a lower rate won't directly impact how much you're paying.\nLowered rates could create opportunities to save money by refinancing. As with refinancing a mortgage, you'll take out a new loan (with a lower rate) to pay off your current balance. Here's more information on refinancing personal, auto and student loans. END
 TITLE: The Fed Cut Rates—Here’s Why That’s Important CONTENT: How to Respond to a Fed Rate Cut\n--------------------------------\nWhile a Fed rate cut can impact your finances in many ways, a small decrease or increase might not be significant enough to warrant a response. Depending on your situation, you might pay or earn a little less interest.\nThe exception is for borrowers who have large loans—especially those who have or are looking for a mortgage. When a lot of money is on the line, locking in a low rate (or refinancing to a lower rate) can lead to significant monthly and long-term savings. END
 TITLE: What Is a Health Savings Account (HSA)? CONTENT: How Does an HSA Work?\n---------------------\nYou can open an HSA with an organization that's qualified to serve as a trustee for the account, which includes some banks, credit unions and companies that also manage IRAs.\nThe process is similar to opening a checking account, and you may receive a debit card or checks linked to your HSA. You may also be able to invest the money depending on where you open an account—and you can transfer your HSA to a different trustee later.\nAn HSA is intended for qualified medical expenses, such as copayments and coinsurance. Qualified expenses also can include medicine, equipment and procedures, and generally align with the medical and dental expenses that qualify for an itemizable deduction. If your spouse or a dependent is in need, you may be able to use your HSA to pay for qualified expenses on their behalf.\nYour contributions to the account may be tax-deductible, and you can withdraw the money tax-free for qualified expenses. However, if you use money from your HSA for a non-qualified expense, you'll have to include the withdrawal portion in your taxable income and pay an additional 20% penalty.\nThe penalty is waived if you're 65 or older, disabled or withdraw money from an account after the account holder passes. However, you still have to include those withdrawals in your taxable income if you don't use them for a qualified expense.\nYour employer may offer a flexible spending account (FSA), which is similar to an HSA but has distinct differences. With an HSA, you own your savings, but FSA funds are tied to your employer and can disappear if you don't use them or if you leave your job. END
 TITLE: What Is a Health Savings Account (HSA)? CONTENT: Who Qualifies for an HSA?\n-------------------------\nThere are limits on who can open an HSA and how much you can contribute to your account each year. The limits and amounts can change from one year to the next.\nTo qualify for an HSA:\n*   You need to have a high deductible health plan (HDHP), an insurance plan that has relatively lower premiums and a high deductible. In 2020, HDHPs have a deductible of $1,400 or higher for individual plans, or $2,800 or higher for family plans. You may be eligible if your spouse has a non-HDHP plan, as long as the plan doesn't cover you.\n*   You don't have additional health coverage, although there are exceptions for special types of coverage, such as disability, dental, vision and long-term care.\n*   You can't be enrolled in Medicare.\n*   No one can claim you as a dependent on their tax returns.\nIf you qualify, the contribution limit for 2020 is:\n*   $3,550 if you have an individual health insurance plan.\n*   $7,100 if you have family coverage.\n*   If you're 55 or older, your contribution limit increases by $1,000.\n*   If you earned less than the year's contribution limit from the job where you got health insurance or you're self-employed, you can't contribute more than you earned.\n*   Employer contributions count toward your annual limit.\nSimilar to an IRA, you can contribute to your HSA for the current year through the next year's tax deadline. The amounts are also prorated if you're only eligible for part of the year.\nOr, if you're eligible on December 1, you could be considered eligible for the entire year if you remain eligible through December 1 of the following year. The \"last-month rule\" can be complicated, but you can speak with the company that will run your HSA to ensure you don't overcontribute and have to pay a penalty. END
 TITLE: What Is a Health Savings Account (HSA)? CONTENT: Benefits of an HSA\n------------------\nAn HSA provides a triple tax benefit to individuals—a rarity, even among tax-advantaged accounts:\n*   You can take a **federal income tax deduction** for contributions to your HSA.\n*   You can earn **tax-free interest or investment gains** within your HSA.\n*   You can make a **tax-free withdrawal** if you use the money to pay for qualified medical expenses\nIf someone contributes to your HSA on your behalf, you may still be able to claim the deduction. And employer contributions are generally excluded from your income. However, the impact on your state taxes can vary, as some states may tax your HSA contributions or earnings.\nAnother benefit is that you don't have to use the funds in your HSA right away. If you have the funds to cover a medical expense, you can keep your money growing in an HSA, knowing that you can withdraw the money tax-free later. Keep your receipts as proof of having a qualified medical expense to match the withdrawal.\nAdditionally, some HSA providers give you the option of investing the money in your account. You could, therefore, treat the account as a long-term retirement account (for post-retirement medical expenses) with the benefit of tax-free withdrawals. However, you might not want to risk the money by investing it if you may need it for short-term medical bills. END
 TITLE: What Is a Health Savings Account (HSA)? CONTENT: What Are the Disadvantages of a Health Savings Account?\n-------------------------------------------------------\nWhile an HSA can offer tax advantages, there are downsides to consider as well:\n*   You have to have an HDHP to qualify, which could lead to paying more for medical expenses compared with a low-deductible plan.\n*   If you need to withdraw the money for a non-qualified expense, you could wind up paying a steep 20% tax penalty in addition to income tax liability.\n*   Some HSA providers charge maintenance or transaction fees that can eat into your savings. END
 TITLE: What Is a Health Savings Account (HSA)? CONTENT: Can a Health Savings Account Affect Your Credit Score?\n------------------------------------------------------\nAs with other checking, savings and investment accounts, an HSA won't directly impact your credit scores. Your credit report won't even include these accounts or their balances. But unpaid medical bills can wind up hurting your credit if they're sent to collections.\nHaving an HDHP could lower your monthly premiums (relative to a different plan), which may free up money to set aside in an HSA. The tax break from the contributions could also help your overall financial situation, making it less likely that you'll have a bill you can't afford.\nIf you can't afford a medical bill, you can try to negotiate it or ask your medical provider for a payment plan. You may want to consider these options even when you can afford the bill to save money and spread out the cost. END
 TITLE: What Is a Health Savings Account (HSA)? CONTENT: An Important Part of Your Emergency or Retirement Planning\n----------------------------------------------------------\nIt's almost a certainty that you, your spouse or a dependent will have a qualified medical expense at some point in the future. If you think an HDHP makes sense for your household, opening and contributing to an HSA offers tax-advantaged savings with only a few downsides.\nKeep detailed records of all your qualifying expenses once you open your account, and if you need money from your HSA you can use it. Otherwise, you can use your HSA as an emergency fund, let the account accrue interest and use those receipts to tap the HSA later. Or, you can invest the funds and take advantage of the tax-free growth as part of your retirement plan. END
 TITLE: What Is a Preapproved Credit Card Credit Offer? CONTENT: The Difference Between Prequalified and Preapproved Credit Card Offers\n----------------------------------------------------------------------\nPrequalified and preapproved can mean the same thing, particularly when you're looking at credit card offers.\nCredit card issuers may use the terms interchangeably to describe a scenario in which you submit a preliminary application to see which cards and offers you may qualify for. Card issuers may also preapprove you for a card or offer and extend a firm offer of credit if they've prescreened you and determined you've passed their basic criteria.\nHowever, prequalified and preapproved can have significantly different meanings in other lending situations. With a mortgage, for example, a prequalification may mean the lender has given you a general idea of how much you can borrow based on your estimated income, debt and credit.\nA mortgage preapproval is often a more complex process—similar to that of actually applying for a mortgage—that can require submitting documents and the lender verifying your information. As a result, a mortgage preapproval can give you a better sense of what you'll likely be approved for and your interest rates, and can reassure sellers your offer is legitimate. END
 TITLE: What Is a Preapproved Credit Card Credit Offer? CONTENT: Do Preapproved Offers Affect Your Credit Score?\n-----------------------------------------------\nGetting preapproved for a credit card generally won't impact your credit scores.\nWhen a credit card company prescreens you for an offer, it will result in a soft inquiry on your credit report. Soft inquiries, also called soft pulls, never impact credit scores. In this case, the card issuer is reviewing your credit report to see which cards or offers you could be eligible for, not checking your credit report to make an approval decision. That's an important distinction because a credit check that leads to an approval or denial is often a hard inquiry, which may lower your credit scores a little.\nIf you see that you're preapproved or prequalified for a credit card and then apply, the card issuer may check your credit before making a decision, which can lead to a hard inquiry.\nGetting preapproved for a credit card can be beneficial because it lets you know you've passed the initial step toward getting a card. While being preapproved doesn't guarantee you can get the card, being turned down for preapproval may prompt you to work on improving your credit and trying again later rather than submitting an application. END
 TITLE: What Is a Preapproved Credit Card Credit Offer? CONTENT: Types of Preapproved Credit Card Offers\n---------------------------------------\nYou can sign up and see your matches now when you use Experian CreditMatchTM to compare cards and offers and see if you're preapproved based on your credit profile. Depending on your circumstances, you may be interested in using Experian CreditMatchTM to find one of the following:\n*   **Rewards cards**: Many credit cards offer some type of rewards when you use the card for eligible purchases. Different types of rewards, such as general travel rewards, airline miles or cash back appeal to different cardholders.\n*   **Cash back cards**: Cash back rewards cards are a popular type of rewards credit card. It's simple to understand the value of the rewards you earn, and you can benefit from the rewards even if you rarely travel.\n*   **Cards for bad credit**: Credit card companies offer certain cards to people who have no credit or bad credit and are trying to build good credit. These are sometimes secured credit cards, which require a refundable security deposit.\n*   **Cards for fair credit**: As your credit improves, you may become eligible for credit cards that offer more rewards, lower fees and don't require a security deposit.\n*   **Balance transfer cards**: A balance transfer card could be a money-saver for those who carry credit card balances. You can transfer existing credit card balances to a new card that offers a promotional interest rate—often 0%—during an introductory period.\n*   **Low interest credit cards**: Cardholders who regularly find themselves carrying a balance may want to look for a low interest card rather than a rewards card.\nYou can also use CreditMatchTM to find debt consolidation, personal and student loans. END
 TITLE: What Is a Preapproved Credit Card Credit Offer? CONTENT: How to Opt Out of Preapproved Credit Card Offers\n------------------------------------------------\nMany consumers want to receive preapproved credit card offers because it allows them to easily compare the cards they'll likely be able to get to the cards they're currently using. You may also get preapproved for a sign-up bonus or promotional interest rate that's not available to the general public.\nIf you want to opt out of prescreened credit card offers, however, you can call 888-5-OPTOUT (888-567-8688) or submit your request online at OptOutPrescreen.com to opt out of offers for five years. To request a permanent opt-out, fill out the necessary form and mail it to the address provided by OptOutPrescreen.com.\nIf you've previously opted out, you can always opt back in to receiving preapproved credit card offers by calling the same number or visiting the website and choosing the opt-in option. END
 TITLE: What Is a Preapproved Credit Card Credit Offer? CONTENT: Make the Most of Preapproved Credit Card Offers\n-----------------------------------------------\nRegardless of how you apply for a credit card, once you receive the card, it may offer the same benefits, fees and terms. However, credit card companies offer promotional rewards and rates to attract new cardholders.\nPrescreened credit card offers can give you access to some of these promotions. You can also use Experian CreditMatchTM to compare offers from multiple creditors without hurting your credit scores. Plus, getting preapproved for a credit card can help you avoid submitting applications that could be denied and still lead to hard inquiries on your credit report. END
 TITLE: When to Use a Credit Card for Big Purchases CONTENT: How Using a Credit Card for Large Purchases Affects Your Credit\n---------------------------------------------------------------\nThe amount you earn or spend on your credit cards doesn't directly impact your credit scores. What matters is how close you get to the credit limit on each one of your cards, even if the dollar amount is relatively low.\nThe amount of credit you use relative to your card's limit is called your credit utilization ratio, and it's the second most important credit scoring factor. Using a large portion of your credit limit—or having a high utilization ratio—can hurt your scores, while using a small portion is best for your scores. For this reason, using your credit card to make a large purchase could hurt your credit if it increases your credit utilization ratio.\nAn important detail to remember is that the credit utilization calculation depends on what's on your credit report. Generally, credit card companies send an update to the credit bureaus around the end of your card's statement period, which is about three weeks before your bill's due date.\nAs a result, if using your card to make a large purchase brings you close to your credit limit, it will raise your utilization rate even if you pay your bill in full and on time. If you have the money available, you can avoid this by paying down your card's balance before the end of your statement period. END
 TITLE: When to Use a Credit Card for Big Purchases CONTENT: When Is It a Good Idea to Put a Big Purchase on a Credit Card?\n--------------------------------------------------------------\nUsing a credit card for big purchases can be advantageous in different circumstances and for different reasons: END
 TITLE: When to Use a Credit Card for Big Purchases CONTENT: Common Large Purchases to Make With a Credit Card\n-------------------------------------------------\nBecause of these benefits, there are a few common purchases that people tend to use credit cards for:\n*   **Appliances and electronics**: Card-issuer purchase protections can be particularly handy when you're buying expensive big-ticket items.\n*   **Hotel stays and airline tickets**: A card's travel benefits only apply if you use the card to make applicable purchases, and travel rewards cards may offer bonus rewards on travel purchases.\n*   **Rental cars**: The benefits when renting a car are the same as those for hotel stays and airline ticket purchases. Plus, some rental agencies require a credit check if you want to use a debit card.\nAlso keep in mind that frequent purchases can add up to become a major monthly expense. For example, people who tend to cook at home or have large families may wind up spending hundreds of dollars at grocery stores every month. A rewards credit card that offers bonus points at grocery stores could be a good fit. END
 TITLE: When to Use a Credit Card for Big Purchases CONTENT: Using a credit card for large purchases isn't always a good idea. A big impulse buy could lead to regret—and debt—later on, particularly when you're working to pay off credit card debt as your new purchases will start to accrue interest right away. Adding a new, big charge at this point can lead to paying more interest, which will make it more difficult to pay off your card.\nIf you're stuck and need to make the purchase, you may want to use your credit card for all the reasons listed above. But if you can go without, focus on paying down your credit card debt rather than adding to your balance.\nYou also don't want to use a credit card for large purchases if doing so will cause you to incur an extra fee. These convenience fees may be around 2% of the purchase price, which can be a significant amount on a large purchase. END
 TITLE: When to Use a Credit Card for Big Purchases CONTENT: Best Credit Cards for Big Purchases\n-----------------------------------\nThe best card is going to depend on what you're purchasing, whether it's a new card and if you can pay off the balance in full or want to pay it off over time. Here are a few top picks:\n### Wells Fargo Platinum card\nWells Fargo Platinum card\n-------------------------\nApply\non Wells Fargo's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nWells Fargo Platinum card\n-------------------------\nAPR\n16.49%-24.49% (Variable)\nIntro APR\n0% for 18 months from account opening on purchases and qualifying balance transfers\n##### Card Details\n*   0% intro APR for 18 months from account opening on purchases and qualifying balance transfers, then a 16.49% to 24.49% variable APR; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5\n*   $0 Annual Fee\n*   Get up to $600 protection on your cell phone (subject to $25 deductible) against covered damage or theft when you pay your monthly cellular telephone bill with your Wells Fargo Platinum card\n*   Easy access to your FICO® Credit Score with Wells Fargo Online®\n*   Monitor your spending, purchases and any suspicious activity with text and email alerts and notifications\n*   Convenient tools to help create a budget and manage your spending with My Money Map\n*   Select \"Apply Now\" to learn more about the product features, terms and conditions\n*   Matched For You are statements made by Experian and may not reflect Wells Fargo’s underwriting standards\n[Rates and Fees](;offerid=949414.284&type=3&subid=0)\nThe Wells Fargo Platinum card has an introductory 0% APR offer that allows you to make purchases or transfer balances and pay no interest for up to 18 months before the standard APR of 16.49% to 24.49% variable starts applying. Balance transfers made within 120 days of card opening qualify for the intro bonus rate and are charged a 3% balance transfer fee ($5) minimum; transfers made after 120 days pay the ongoing rate and a 5% fee ($5 minimum). It could be a good option if you need time to pay off the balance. Plus, there's no annual fee, so you can put all your money toward paying off your balance. The downside is you won't earn any rewards, but the savings from avoiding fees and interest can add up.\n### Capital One Quicksilver Cash Rewards Credit Card\nCapital One Quicksilver Cash Rewards Credit Card\n------------------------------------------------\nApply\non Capital One's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nCapital One Quicksilver Cash Rewards Credit Card\n------------------------------------------------\nAPR\n15.49% - 25.49% (Variable)\nIntro APR\n0% on Purchases for 15 months\nRewards\n1.5% cash back on All Purchases\n**Intro Bonus**\nOne-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening\n##### Card Details\n*   One-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening\n*   Earn unlimited 1.5% cash back on every purchase, every day\n*   No rotating categories or sign-ups needed to earn cash rewards; plus, cash back won't expire for the life of the account and there's no limit to how much you can earn\n*   0% intro APR on purchases for 15 months; 15.49%-25.49% variable APR after that\n*   $0 annual fee and no foreign transaction fees\nIf you want to earn rewards and need some time to pay off your big purchase, consider the Capital One Quicksilver Cash Rewards Credit Card. New cardholders can qualify for a 200 intro bonus if they spend $500 within their first 3 months with the card. Additionally, you'll get 1.5% cash back on every purchase, large or small.\n### Chase Sapphire Preferred® Card\nChase Sapphire Preferred® Card\n------------------------------\nApply\non Chase's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nChase Sapphire Preferred® Card\n------------------------------\nAPR\n15.99% - 22.99% Variable\nRewards\n2X points on Travel\n1X points on All Other Purchases\n**Intro Bonus**\nOur best offer ever! Earn 100,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,250 when you redeem through Chase Ultimate Rewards®.\n##### Card Details\n*   Our best offer ever! Earn 100,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,250 when you redeem through Chase Ultimate Rewards®.\n*   Enjoy new benefits such as a $50 annual Ultimate Rewards Hotel Credit, 5X points on travel purchased through Chase Ultimate Rewards®, 3X points on dining and 2X points on all other travel purchases, plus more.\n*   Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 100,000 points are worth $1,250 toward travel.\n*   With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories.\n*   Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash's subscription service. Activate by 12\/31\/21.\n*   Count on Trip Cancellation\/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.\n*   Get up to $60 back on an eligible Peloton Digital or All-Access Membership through 12\/31\/2021, and get full access to their workout library through the Peloton app, including cardio, running, strength, yoga, and more. Take classes using a phone, tablet, or TV. No fitness equipment is required.\nThe Chase Sapphire Preferred® Card has a large intro bonus for new cardholders who haven't received a bonus on any Sapphire card in the past 48 months. The bonus is for 100,000 Chase Ultimate Rewards points if you use the card to make $4,000 worth of purchases within 3 months of opening your account. The points are worth $1,250 if you use them to book travel through Ultimate Rewards, or $600 if you redeem them for cash back.\nChoose the Right Card for the Job\n---------------------------------\nPicking the right card is most important when you're making large purchases. Differences between rewards programs, promotional rates, promotional periods, benefits and purchase protections will all factor into the rewards you'll earn or how much interest you can avoid paying.\nIf you think you might want a new card for your big purchases, you can quickly compare cards and current offers using Experian CreditMatchTM. END
 TITLE: When to Use a Credit Card for Big Purchases CONTENT: ### Wells Fargo Platinum card\nWells Fargo Platinum card\n-------------------------\nApply\non Wells Fargo's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nWells Fargo Platinum card\n-------------------------\nAPR\n16.49%-24.49% (Variable)\nIntro APR\n0% for 18 months from account opening on purchases and qualifying balance transfers\n##### Card Details\n*   0% intro APR for 18 months from account opening on purchases and qualifying balance transfers, then a 16.49% to 24.49% variable APR; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5\n*   $0 Annual Fee\n*   Get up to $600 protection on your cell phone (subject to $25 deductible) against covered damage or theft when you pay your monthly cellular telephone bill with your Wells Fargo Platinum card\n*   Easy access to your FICO® Credit Score with Wells Fargo Online®\n*   Monitor your spending, purchases and any suspicious activity with text and email alerts and notifications\n*   Convenient tools to help create a budget and manage your spending with My Money Map\n*   Select \"Apply Now\" to learn more about the product features, terms and conditions\n*   Matched For You are statements made by Experian and may not reflect Wells Fargo’s underwriting standards\n[Rates and Fees](;offerid=949414.284&type=3&subid=0)\nThe Wells Fargo Platinum card has an introductory 0% APR offer that allows you to make purchases or transfer balances and pay no interest for up to 18 months before the standard APR of 16.49% to 24.49% variable starts applying. Balance transfers made within 120 days of card opening qualify for the intro bonus rate and are charged a 3% balance transfer fee ($5) minimum; transfers made after 120 days pay the ongoing rate and a 5% fee ($5 minimum). It could be a good option if you need time to pay off the balance. Plus, there's no annual fee, so you can put all your money toward paying off your balance. The downside is you won't earn any rewards, but the savings from avoiding fees and interest can add up. END
 TITLE: When to Use a Credit Card for Big Purchases CONTENT: ### Capital One Quicksilver Cash Rewards Credit Card\nCapital One Quicksilver Cash Rewards Credit Card\n------------------------------------------------\nApply\non Capital One's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nCapital One Quicksilver Cash Rewards Credit Card\n------------------------------------------------\nAPR\n15.49% - 25.49% (Variable)\nIntro APR\n0% on Purchases for 15 months\nRewards\n1.5% cash back on All Purchases\n**Intro Bonus**\nOne-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening\n##### Card Details\n*   One-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening\n*   Earn unlimited 1.5% cash back on every purchase, every day\n*   No rotating categories or sign-ups needed to earn cash rewards; plus, cash back won't expire for the life of the account and there's no limit to how much you can earn\n*   0% intro APR on purchases for 15 months; 15.49%-25.49% variable APR after that\n*   $0 annual fee and no foreign transaction fees\nIf you want to earn rewards and need some time to pay off your big purchase, consider the Capital One Quicksilver Cash Rewards Credit Card. New cardholders can qualify for a 200 intro bonus if they spend $500 within their first 3 months with the card. Additionally, you'll get 1.5% cash back on every purchase, large or small. END
 TITLE: When to Use a Credit Card for Big Purchases CONTENT: ### Chase Sapphire Preferred® Card\nChase Sapphire Preferred® Card\n------------------------------\nApply\non Chase's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nChase Sapphire Preferred® Card\n------------------------------\nAPR\n15.99% - 22.99% Variable\nRewards\n2X points on Travel\n1X points on All Other Purchases\n**Intro Bonus**\nOur best offer ever! Earn 100,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,250 when you redeem through Chase Ultimate Rewards®.\n##### Card Details\n*   Our best offer ever! Earn 100,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,250 when you redeem through Chase Ultimate Rewards®.\n*   Enjoy new benefits such as a $50 annual Ultimate Rewards Hotel Credit, 5X points on travel purchased through Chase Ultimate Rewards®, 3X points on dining and 2X points on all other travel purchases, plus more.\n*   Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 100,000 points are worth $1,250 toward travel.\n*   With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories.\n*   Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash's subscription service. Activate by 12\/31\/21.\n*   Count on Trip Cancellation\/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.\n*   Get up to $60 back on an eligible Peloton Digital or All-Access Membership through 12\/31\/2021, and get full access to their workout library through the Peloton app, including cardio, running, strength, yoga, and more. Take classes using a phone, tablet, or TV. No fitness equipment is required.\nThe Chase Sapphire Preferred® Card has a large intro bonus for new cardholders who haven't received a bonus on any Sapphire card in the past 48 months. The bonus is for 100,000 Chase Ultimate Rewards points if you use the card to make $4,000 worth of purchases within 3 months of opening your account. The points are worth $1,250 if you use them to book travel through Ultimate Rewards, or $600 if you redeem them for cash back. END
 TITLE: When to Use a Credit Card for Big Purchases CONTENT: Choose the Right Card for the Job\n---------------------------------\nPicking the right card is most important when you're making large purchases. Differences between rewards programs, promotional rates, promotional periods, benefits and purchase protections will all factor into the rewards you'll earn or how much interest you can avoid paying.\nIf you think you might want a new card for your big purchases, you can quickly compare cards and current offers using Experian CreditMatchTM. END
 TITLE: What Happens If I Stop Paying My Credit Cards? CONTENT: You Will Be Charged Late Fees\n-----------------------------\nThe first thing that can happen if you don't pay your credit card bill on time is the card issuer may charge you a late payment fee.\nThe fee amount can vary depending on your card and current balance. However, the federal Credit CARD Act of 2009 limits the fee. At most, the late payment fee can be $29 for your first late payment and $40 for each subsequent missed payment.\nIf you're taking advantage of a promotional 0% APR (annual percentage rate), a late payment may terminate that promotion early, meaning you'll liable for interest fees on your card's balance going forward, including the fees that are added to your balance. END
 TITLE: What Happens If I Stop Paying My Credit Cards? CONTENT: Your Credit Score May Take a Hit\n--------------------------------\nA card issuer can report your late payment to the credit bureaus—Experian, TransUnion and Equifax—once your account is 30 days past due.\nYour payment history is the most important scoring factor in your credit score, and a late credit card payment can hurt your creditworthiness and lower your scores. The exact number of points you'll lose will vary depending on your overall credit profile.\nGenerally, people who have good to excellent credit lose the most points from a new late payment. Those who have poor credit may also experience a score drop, but it likely won't drop by as many points if their score already reflects a history of missed payments.\nThe card issuer can continue to report your account as late if you don't bring it current. Your credit report will reflect these updates and notes if you were at least 30, 60, 90, 120, 150 or 180 days late.\nLate payments stay on your credit report for up to seven years and continue to impact your scores during the entire period. END
 TITLE: What Happens If I Stop Paying My Credit Cards? CONTENT: A Penalty APR Could Kick In\n---------------------------\nOnce you're 60 days behind, the card issuer can charge a new, higher penalty APR to your account that applies to your current balance and future transactions. If you bring your account current, you may be able to get back to your standard APR after making six consecutive on-time payments for at least the minimum amount due. END
 TITLE: What Happens If I Stop Paying My Credit Cards? CONTENT: Your Account May Be Sent to Collections\n---------------------------------------\nAround the 180-day point, the credit card issuer will likely assume it won't receive a payment on the account and will then charge off your account. This accounting procedure lets the company deduct the unpaid bill from its earnings, but doesn't forgive your debt.\nThe card issuer may also send or sell your account to a collection agency, which will then try to collect the debt. By this point, late fees and interest charges may have brought the total balance much higher than the original unpaid amount.\nBoth the charge-off and collection account may appear on your credit reports and further hurt your credit.\nWhen a series of missed payments leads to a closed account, those payments and related negative marks (such as the charge-off) will be removed from your credit report seven years after the first payment was missed—also known as the date of first delinquency. END
 TITLE: What Happens If I Stop Paying My Credit Cards? CONTENT: Your Creditor May File Suit Against You\n---------------------------------------\nA creditor or debt collector can also sue you to force payment of a past-due debt. If the creditor wins, it may get a judgment that allows it to pull money from your bank account or directly from your paycheck. It may also be able to get a lien against your property.\nIf you're served with a lawsuit, don't ignore the case or the creditor may be awarded a default judgment in the creditor's favor. In some states, this may happen even if the debt is outside the statute of limitations. END
 TITLE: What Happens If I Stop Paying My Credit Cards? CONTENT: What to Do if You've Missed a Payment\n-------------------------------------\nWhether you're about to miss a payment or already fell behind, one of the first things you should do is contact the credit card company. It may be able to set you up with a hardship plan with a more affordable monthly payment amount.\nOr, if you missed a payment and quickly brought the account current, you can ask the issuer to refund the fees and interest it charged. It's not obliged to agree, but if you've otherwise been a good customer, the company may be understanding.\nIf you're struggling with multiple credit cards, you may also want to contact a nonprofit credit counseling agency and ask about a debt management plan. The counselor may be able to negotiate with the card issuers to waive fees, lower your monthly payments and bring your accounts current. You'll then make one monthly payment to the counseling agency, which will pay the credit card companies. END
 TITLE: What Happens If I Stop Paying My Credit Cards? CONTENT: Set Yourself Up for Success\n---------------------------\nMissing your credit card payments can lead to a string of expensive and credit-damaging consequences. But you don't need to completely pay off your debt to keep this from happening; on-time minimum payments will keep your account current and allow you to avoid fees, penalty APRs and damage to your credit. If you're reasonably certain you'll have the funds available, you can set up automatic payments for the minimum amount to avoid accidental late payments.\nTracking your income and expenses with a budget could also help you avoid using your credit card for purchases you'll have trouble paying for later. But if your struggles don't stem from overspending, your best options may be to communicate with your creditors or get help from a nonprofit credit counselor when you start to fall behind. END
 TITLE: How to Use a Credit Card to Build Credit - Experian CONTENT: Starting to Build Credit With a Credit Card\n-------------------------------------------\nCredit cards help you build credit because credit card issuers typically report your account and activity to the national credit bureaus—Experian, TransUnion and Equifax. The bureaus then use this information to create your credit reports, which are the basis of your credit scores.\nTo start building credit with a card, you'll need to either open a credit card of your own or become an authorized user on someone else's credit card. Getting a card of your own can be difficult if you've never had credit before, or if you have poor credit. However, there are options.\n*   **Secured credit cards** are often a stepping stone if you're starting to build or rebuild your credit. These cards function like normal credit cards, but you'll have to send the card issuer a refundable security deposit when you open your account. Secured cards may have high fees and don't necessarily offer great cardholder benefits, but responsible use can help you qualify for better credit cards later.\n*   A **student credit card** can also be a good first option if you're a student. Student cards tend to have low credit limits; however, there are student cards available that have few fees and offer rewards on purchases.\nYou can also ask a friend or family member to add you as an authorized user on one of their credit cards. When they do, their credit card company can report the account to the bureaus under your name as well. You'll get your own card and can make purchases, as long as the primary cardholder agrees.\nHaving another person's card as part of your credit history can help you build credit—as long as the primary user manages their card well. Your credit won't be helped if the primary cardholder doesn't make payments on time, for example.\nOnce you begin building good credit of your own, it may be easier to get approved for different types of unsecured credit cards. END
 TITLE: How to Use a Credit Card to Build Credit - Experian CONTENT: What Are the Best Ways to Use a Credit Card to Build Credit?\n------------------------------------------------------------\nA credit card can either help you build positive credit or hurt your credit—it all depends on how you use it. To work your way toward excellent credit scores, focus on making on-time payments and avoid maxing out your card. Here are the best ways to use your credit card to your benefit: END
 TITLE: How to Use a Credit Card to Build Credit - Experian CONTENT: While opening and using credit cards can be a good way to build credit, they're not the only option. Loans and other types of accounts can also help if they're reported to the credit bureaus.\nWhen you're starting out, you could look into credit-builder loans, which are designed specifically for this purpose. Other common loans, such as student, auto and mortgage loans can also help you build credit.\nAs with credit cards, making payments on time with loans is the most important factor in building credit. Your remaining balance can also impact your scores, but it's not as important as utilization rates on credit cards.\nOther types of accounts, such as utility and phone plans, often don't get reported to the bureaus or impact your credit. However, Experian Boost™† is a free service that allows you to add your phone and utility accounts to your Experian credit report so they can help you build credit. There are also rent reporting services that you may be able to use to add your rent payments to your credit reports. END
 TITLE: How Can I Get Cash Back From My Credit Card? CONTENT: How Do Cash Back Credit Cards Work?\n-----------------------------------\nCash back credit cards are a type of rewards credit card you can use to earn cash back when you make eligible purchases. Your rewards will build up in your account, and you may be able to redeem them in several ways.\nMost purchases made with a cash back credit card will qualify for rewards, but read your card's rates and terms page or cardholder agreement for the list of possible exemptions. Certain types of transactions may be excluded, such as:\n*   Credit card fees\n*   Interest charges\n*   Balance transfers\n*   Cash advances\n*   Unauthorized purchases\n*   Purchases related to illegal activity\n*   Cash-like purchases, such as travelers checks, prepaid cards, money orders, wire transfers or foreign currencies\n*   Gambling-related purchases, such as lottery tickets or casino chips\n*   Transactions that are currently in dispute\n*   The amount of a transaction that's refunded or offset by a statement credit\nIf your purchase is eligible, the amount you'll earn in cash back will depend on your card, how much you spend and where you make your purchase.\nWith some credit cards, for example, you'll earn a flat rate, such as 1.5% cash back on all eligible purchases. Other cards have tiered rewards with bonus cash back on certain purchases and a base 1% cash back on non-bonus purchases. END
 TITLE: How Can I Get Cash Back From My Credit Card? CONTENT: How to Redeem Cash Back Rewards\n-------------------------------\nDepending on your cash back card and the program, you may have several options to redeem your cash back rewards. You can:\n*   **Receive a statement credit.** The cash back gets applied to your credit card's balance.\n*   **Request a check.** The issuer sends you a check for your cash back rewards.\n*   **Transfer rewards to a bank account.** The rewards are electronically transferred into a linked bank account. However, you may need a bank account with the card's issuer to use this option.\n*   **Use your cash rewards as rewards points.** Some cash back cards are linked to their issuer's rewards program, allowing you to convert them into points or use them as points instead of requesting cash back.\nCheck your card's details to see if there's a minimum threshold for redeeming your rewards. This could vary depending on the redemption option. For example, you may be able to request a check once you have $25 in rewards, or make a transfer to a bank account from the same issuer if you have $20 or more.\nAlso, know that choosing the statement credit option may lead to earning less rewards overall. With some programs, you only earn cash back on your net purchases—your purchase balance minus returns and credits. In these cases, you may want to request a check or bank transfer to ensure you'll earn cash back from all your eligible purchases. END
 TITLE: How Can I Get Cash Back From My Credit Card? CONTENT: Many credit card issuers offer cash back credit cards, and there are options available to those with poor credit or are new credit and excellent credit (such as the Chase Freedom®).\nOnce you find a card you like, applying is no different from applying for a non-rewards card. You can often fill out an online application and submit it online. Once you apply, the card issuer will likely perform a hard inquiry on your credit report to check your creditworthiness, which can lead to a small drop in your credit scores. If you're approved, the issuer will send you the card in the mail and you can start using it to earn cash back rewards. END
 TITLE: How Can I Get Cash Back From My Credit Card? CONTENT: Finding the Best Cash Back Card\n-------------------------------\nFinding the best cash back card for your wallet will depend on which cards you can qualify for, what types of rewards program you want to use and how much you usually spend with credit cards.\nAsk yourself these questions to narrow down your choices:\n*   Do you want a flat-rate rewards card or one that offers bonus cash back on certain purchases?\n*   Are you willing to pay an annual fee for a higher rewards rate? If so, calculate how much you expect to earn from the rewards to make sure the fee is worth it.\n*   Do you regularly pay off your bill in full? If not, a cash back card with a high interest rate might be worse overall than a low-rate card that doesn't offer rewards.\nWith your answers in mind, you can start comparing cards from different issuers to see which one matches your needs. You can also use a tool, such as Experian CreditMatchTM, to quickly compare cards and filter the results based on your credit, card fees and types of rewards. END
 TITLE: How Important Is Credit Card Utilization to Your Credit Score? CONTENT: Credit card utilization refers to the relationship between your credit card's balance and credit limit as they appear on your credit report. That's an important distinction from your card's current balance, as card issuers generally report the balance to the credit bureaus around the end of your billing period. As a result, even if you pay your bill in full every month, you could still have a high utilization rate.\nYou can calculate your credit card utilization ratio by dividing the credit card balance appearing on your credit report by the card's credit limit. Then multiply by 100 to see the result as a percentage.\nFor example, if your card has a balance of $1,000 and limit of $5,000, then 1,000 \/ 5,000 = 0.2. Multiply by 100, and you get 20%.\nYou can review a free copy of your Experian credit report online. When you log in, Experian will do the calculations for you and show your overall utilization rate and the utilization rate for each of your credit cards—both are factors in your credit scores.\nDepending on the scoring model, the utilization rate of other types of revolving accounts, such as personal lines of credit, may also be included. END
 TITLE: How Important Is Credit Card Utilization to Your Credit Score? CONTENT: How Does Credit Card Utilization Affect Your Credit Score?\n----------------------------------------------------------\nCredit card utilization can have a direct and significant impact on your credit scores. Depending on whether it's a FICO® or VantageScore® credit score, utilization falls within one of the two most important categories in determining your score. In either case, higher utilization ratios can hurt your scores, while lower utilization rates can help them.\nMost credit scores (there are many) only factor in your most recently reported balances and credit limits and the resulting utilization ratios. In these cases, using your card often or for major purchases can lead to a high utilization ratio that hurts your scores. But paying off the balance and maintaining a lower balance could help bring your scores back up.\nSome of the latest credit scoring models, such VantageScore 4.0 and FICO® Score☉ 10T, also consider your balance trends and payments over time. Having a history of paying off your balance in full or paying off your debt over time, rather than having a steady or growing balance, can help you improve these scores even more. END
 TITLE: How Important Is Credit Card Utilization to Your Credit Score? CONTENT: How to Reduce Your Credit Card Utilization Ratio\n------------------------------------------------\nYou can reduce your credit card utilization ratio by decreasing your reported card balances and increasing your available credit. There are different ways you can go about doing this: END
 TITLE: How Important Is Credit Card Utilization to Your Credit Score? CONTENT: Monitor Your Credit and Utilization\n-----------------------------------\nWhile credit card utilization is an important scoring factor, you shouldn't let the fear of high utilization keep you from using your credit cards when you need to. If it's for an emergency purchase that you need to pay off over time, focus on paying down the balance as quickly as possible. Or, if it's because you want to earn rewards and use the cardholder protections, you can pay down your card's balance early. Whatever the case may be, you can monitor your Experian credit report for free and quickly check your overall and per-account utilization rates. END
 TITLE: What Is the Easiest Credit Card to Get With No Credit? CONTENT: Which Credit Card Can I Get if I Don't Have Credit?\n---------------------------------------------------\nSome credit cards for people who don't have any credit history are loaded with fees and offer few, if any, perks. But that's not always the case. Here are a few of the best cards to consider. END
 TITLE: What Is the Easiest Credit Card to Get With No Credit? CONTENT: ### Secured Mastercard® from Capital One\nThe Secured Mastercard® from Capital One provides several appealing features for cardholders looking to build or rebuild their credit. It reports to all three major credit bureaus so your on-time bill payments will help you establish a positive credit history. It's also a good card for those who are seeking a bit more flexibility. You may put down a refundable security deposit starting at $49 to get a $200 initial credit line. While this card does not offer rewards on purchases, it provides some quality features. Once you've opened your account, you may be considered for an increase in your credit limit in as little as six months without needing to provide an additional deposit. And this card doesn't charge an annual fee, setting it apart from some other similar cards. END
 TITLE: What Is the Easiest Credit Card to Get With No Credit? CONTENT: ### The OpenSky® Secured Visa® Credit Card\nWhen you apply for the The OpenSky® Secured Visa® Credit Card, the card issuer will not check your credit history. Additionally, you don't need to have a checking account—a requirement for some other secured cards.\nAs with other secured cards, however, you will need to send OpenSky a refundable security deposit ($200 minimum), and your security deposit amount will become your credit limit. The card has a $35 annual fee but an APR that's lower than some other cards geared to those with no credit, which could make it more attractive if you tend to carry a balance.\n### Credit One Bank® Cash Back Rewards Credit Card\nWith the Credit One Bank® Cash Back Rewards Credit Card, you can build or rebuild your credit and earn cash back rewards while doing it. You'll automatically get 1% cash back on eligible gas and grocery purchases, as well as on eligible phone, TV and internet bill payments. Because it's not a secured card, you won't have to pay a security deposit before making purchases. The Credit One Bank® Cash Back Rewards Credit Card has a minimum initial credit line of $300, which can be increased based on your payment history.\nThis card is available to consumers who have poor to good credit scores and are rebuilding or new to credit. You can check to see if you'll prequalify without any effect on your credit scores. One drawback, however, is the card's $75 annual fee, which increases to $99 after the first year. END
 TITLE: What Is the Easiest Credit Card to Get With No Credit? CONTENT: The Difference Between Secured and Unsecured Credit Cards\n---------------------------------------------------------\nSecured credit cards are backed by a required refundable security deposit, which reduces the lender's risk and makes it easier for people who don't have credit—or who have bad credit—to qualify. This typically makes them easier to get than unsecured cards, which have no such requirement. Some card issuers don't even require a credit check for their secured cards.\nThe credit limit on a secured card is usually equal to the security deposit. You may also be able to send a larger security deposit if you want a higher limit. With unsecured cards, the issuer may determine your credit limit based on your credit history and the information from your application.\nYour security deposit won't go toward your monthly payments: You still have to make regular payments or you could be charged a late payment fee and wind up with a late payment on your credit reports. Because payment history is the most important factor in your credit scores, you don't want that to happen whether you have a secured or unsecured card.\nIf you stop making monthly payments, the secured card issuer may close the account and keep the security deposit to cover the unpaid balance and fees. An unsecured issuer may send your account to collections, or sue you for the remaining debt.\nWhen it comes to using your credit card, secured and unsecured cards work the same way—merchants might not even know if your card is secured or not. END
 TITLE: What Is the Easiest Credit Card to Get With No Credit? CONTENT: How Can I Build Good Credit?\n----------------------------\nOnce you get your credit card, use it responsibly so you can build good credit and avoid interest charges. Managing a credit card wisely can be one of the most effective ways to establish a positive credit history. Here's how:\n*   **Use only a small portion of your available credit.** To build credit, you generally want to keep your credit card balance low relative to your credit limit. This is known as your credit utilization rate or ratio, and it plays a large part in your credit scores. To determine your utilization ratio, divide your credit card balance by your credit limit. For the best scores try to keep your utilization rate below 7%.\nOften, card issuers report the balance around the end of the statement period, which may be a few weeks before your bill's due date. If you use a large portion of your card's available balance one month, try to pay down the balance before the end of the statement period to decrease your credit utilization. Ideally, pay your bill in full every month to avoid interest charges.\n*   **But do use your card.** While you may think that not using your credit card is a good thing, if you never make purchases with it, your card issuer could close the account. Using your card regularly—and paying off the balance—shows future lenders that you can manage credit without getting yourself into financial trouble. If you're mainly using your new card to build credit, consider putting one of your monthly subscriptions on the card and paying it off every month.\n*   **Make all your payments on time.** Payment history is the most important factor in calculating your credit scores, and making all your payments on or before the due date will help you build a positive credit history. On the other hand, one late payment can damage your credit. Even if you use your credit card more than you anticipated one month and can't afford to pay the entire bill, as long as you make at least the minimum required payment on time, your card issuer will report your on-time payment to the credit bureaus. END
 TITLE: What Is the Easiest Credit Card to Get With No Credit? CONTENT: Weigh Your Options\n------------------\nWhile being new to credit can limit your options, fortunately, many credit card issuers are willing to work with people who are building credit for the first time. The cards above are some of the best picks, and another option is to see what cards your bank or credit union offers, particularly if you've had an account there for a long time. Sometimes, banks and credit unions will consider your history with the organization when reviewing your application for a new credit card.\nOnce you have a list of cards you're considering, compare features, fees and benefits to make sure you're getting the best card possible for your needs. With a little research and some good financial habits, you'll be on your way to building a solid credit history. END
 TITLE: Do Cash Back or Travel Rewards Offer the Most Value? CONTENT: How Rewards Credit Cards Work\n-----------------------------\nRewards credit cards work like non-rewards cards for the most part, but they offer extra value when you use your card for eligible purchases. Plus, many rewards cards come with additional benefits, such as statement credits that can offset certain purchases and cardholder perks that can make travel more pleasant and less expensive.\nThe trade-off is that rewards cards often have higher annual percentage rates (APRs) than non-rewards cards. If you don't habitually pay your bill in full every month or if you use credit cards for cash advances, consider looking for a non-rewards, low-rate card instead. If you pay your bill in full or keep balances very low, then learn about how rewards credit cards work so you can make an educated choice on what type is best for you. END
 TITLE: Do Cash Back or Travel Rewards Offer the Most Value? CONTENT: When to Get a Cash Back Credit Card\n-----------------------------------\nCash back credit cards offer cash rewards and may be best if:\n*   You want a simple rewards program.\n*   You don't want any limits on how you'll use rewards.\n*   You want to avoid annual fees.\nDepending on the card and program, you may get your rewards as a statement credit, check or transfer to a bank account. With some cards, you'll need to accrue a certain dollar amount in rewards (such as $25) before you can withdraw the cash.\nCash back cards are often easy to understand and use because you know exactly how much the rewards are worth. And although some cash back cards have annual fees, the fees tend to be lower than travel rewards cards' annual fees. END
 TITLE: Do Cash Back or Travel Rewards Offer the Most Value? CONTENT: When to Get a Travel Rewards Credit Card\n----------------------------------------\nTravel rewards cards offer points or miles as rewards and may be best if:\n*   You frequently travel or want to use your rewards for vacations.\n*   You're ready to invest time in learning about rewards programs.\n*   You don't mind paying annual fees in exchange for more rewards and benefits.\nYou can either get a co-branded travel rewards card, such as an airline or hotel card you can use to earn points or miles in the company's loyalty program, or a general travel rewards card that offers points or miles in the credit card's rewards program.\nA co-branded card may be best if you frequently fly or stay with the same few brands. In addition to earning points or miles from your purchases, some cards offer extra perks, such as free checked bags, status in the company's loyalty program or an annual voucher for a free hotel night.\nGeneral travel rewards cards offer fewer brand-specific perks, although some do have partnerships with specific brands. They also give you more freedom when it comes to redeeming rewards.\nFor example, with Chase Ultimate Rewards or American Express Membership Rewards, you can choose to redeem your points for cash back, merchandise, gift cards or travel. You can also transfer your points to partner airline and hotel loyalty programs, which could allow you to book a rewards flight or stay for fewer points than your card issuer would require.\nTo make the most of your points, you'll want to learn about the many redemption options and which ones offer the most value. Often, it's booking travel with points or transferring the points and then booking rewards travel.\nThe travel cards with big earning power and extra cardholder perks have annual fees that can range from around $100 to $550 per year. While it can be an expensive investment, frequent and luxury travelers may find the benefits far outweigh the cost.\nThere are also travel rewards cards that don't have an annual fee, but they often offer a similar level of rewards (or sometimes less) than you can earn with a cash back card that doesn't have an annual fee. END
 TITLE: Do Cash Back or Travel Rewards Offer the Most Value? CONTENT: In Either Case, Consider the Rewards Rates and Fees\n---------------------------------------------------\nWhether you're leaning toward a cash back card or a travel rewards card, consider how you plan on using your card, where you spend the most money and which type of rewards program makes the most sense.\nMany rewards cards have annual fees, but don't rule out those cards before reviewing the benefits. Often, and especially if you travel frequently, the benefits can justify the cost. Foreign transaction fees can also be important if you travel abroad, but there are cash back and travel rewards options that don't charge this fee.\nIf you want to browse rewards cards, you can use the Experian CreditMatchTM tool to easily compare cards' rewards programs, intro bonus and annual fees. You can also filter the results based on the type of rewards you'll earn. END
 TITLE: How to Avoid Foreign Transaction Fees CONTENT: Watch Out for Conversion and Transaction Fees\n---------------------------------------------\nFees for foreign transactions can come in several forms, and they can depend on what currency you're paying in and where you're making a purchase.\nFirst, there are currency conversion fees that payment networks, banks, ATM operators and merchants may charge. These are markups on the conversion rate, and are generally unavoidable. There are, however, ways to minimize them.\nSome debit and credit cards also charge foreign transaction fees. The fee can apply whenever you make a purchase in foreign currencies or if a foreign bank processes your transaction.\nAs a result, if you're traveling abroad, you could be charged a foreign transaction fee even if you're paying a merchant in U.S. dollars. You could also be charged the fee if you're in the U.S. and make a purchase online that's in a foreign currency.\nHowever, the foreign transaction fees are easy to avoid if you use a card that doesn't have the fee. END
 TITLE: How to Avoid Foreign Transaction Fees CONTENT: Open a Credit Card That Doesn't Have a Foreign Transaction Fee\n--------------------------------------------------------------\nThere are many credit cards that don't have foreign transaction fees. For example, none of the consumer cards from Discover or Capital One charge this fee, and many popular travel credit cards don't have the fee either. Some cards also offer extra benefits that can be helpful while you're traveling.\nFor example, the Chase Sapphire Reserve® offers a long list of travel-related benefits, including up to $300 in annual travel statement credits and free Priority Pass Select membership (enrollment required), which can get you into over 1,200 airport lounges worldwide.\nYou can also receive a statement credit to offset the cost of Global Entry or TSA Precheck, which can help you quickly get through lines at the airport. However, the card's $550 annual fee may be hard to justify unless you're a frequent traveler. END
 TITLE: How to Avoid Foreign Transaction Fees CONTENT: For example, the Chase Sapphire Reserve® offers a long list of travel-related benefits, including up to $300 in annual travel statement credits and free Priority Pass Select membership (enrollment required), which can get you into over 1,200 airport lounges worldwide. END
 TITLE: How to Avoid Foreign Transaction Fees CONTENT: Exchange Currency Before You Travel\n-----------------------------------\nAnother option to avoid fees is to visit your bank in the U.S. before you set off and exchange the dollars in your account for your destination's local currency. You may find that your bank or credit union charges a low (or no) foreign exchange fee, making it an ideal place to exchange money.\nYou likely don't want to be carrying too much cash when you travel, however. But having a little spending money when you arrive can be helpful, and you'll likely save a lot compared with exchanging your money at an airport or other port of entry. END
 TITLE: How to Avoid Foreign Transaction Fees CONTENT: Open a Bank Account That Doesn't Charge Foreign Fees\n----------------------------------------------------\nUsing a credit card that doesn't charge foreign transaction fees can help decrease your costs. But some merchants may charge you extra if you want to use a credit card, or might not accept credit cards at all.\nBefore leaving the U.S., see if your bank charges any extra fees when you're outside the country. Sometimes there are debit card foreign transaction fees or higher ATM fees. You may be able to avoid these by opening the right account.\nOne popular option is the Charles Schwab Bank High Yield Investor Checking® account because it doesn't have any account minimums or foreign transaction fees. Charles Schwab also refunds all ATM fees worldwide.\nIf you don't want to open a new bank account for traveling, ask your bank if it has branch locations or partner banks abroad. You may be able to make withdrawals from ATMs at those locations for free. END
 TITLE: How to Avoid Foreign Transaction Fees CONTENT: Pay With the Local Currency\n---------------------------\nWhen merchants accept cards, they may ask whether you want to pay in the local currency or U.S. dollars. It may seem counterintuitive, but paying with the foreign currency is often the better option.\nMerchants (and ATM operators) can do this using a dynamic currency conversion (DCC), which lets them show you the cost in the local currency or dollars in real time. However, there's a built-in conversion fee markup that's often much higher than what the payment networks charge. Plus, even if you choose dollars, you may have to pay a foreign exchange fee because a foreign bank will process the transaction.\nYou could check the Visa and Mastercard conversion rates and markups online, and compare the rate with what the merchant will charge you. But as a general rule of thumb, using a card that doesn't charge a foreign transaction fee and choosing the local currency is the best option. END
 TITLE: How to Avoid Foreign Transaction Fees CONTENT: Finding Cards With No Foreign Transaction Fees\n----------------------------------------------\nChoosing the right credit card depends on more than the foreign transaction fee. You'll want to consider the annual fees, rewards, cardholder benefits and required credit to get approved for the card. Experian CreditMatchTM can help you sort through credit card offers based on the type of card, fees, credit card issuer and credit score ranges. END
 TITLE: What Is an Early Payday App? CONTENT: Three Types of Early Payday Apps\n--------------------------------\nEarly payday apps all aim to help you get money before your payday, but can differ in exactly how they do so. Generally, an early payday app is set up in one of three ways:\n*   **Available to any worker**: Some early payday apps, such as Earnin, are open to anyone, although they may require users to have a fixed pay schedule or checking account. With these, your employer doesn't need to do anything—or even know—that you're using the app.\n*   **Employer-sponsored**: Others, including DailyPay and PayActiv, require your employer to sign up and offer the program or app to its employees as a benefit. Companies may do this to help their employees with their personal finances, which may also help with employee satisfaction and retention.\n*   **Through an online bank or program**: There are also several online-only banks and membership programs that offer low-cost or free loans, overdrafts or paycheck advances. These services, including Dave and MoneyLion, may offer varying amounts based on a preset limit or a portion of how much you regularly earn.\nThe companies that offer these apps may also differ in the fees they charge. For example, Earnin doesn't charge any interest or fees, but allows users to leave a \"tip\" each time they use the service to get early access to their earnings.\nOther apps may charge a small fee each time you request early pay, and a higher fee for expedited processing. Employer-sponsored programs generally give employers the option to cover part or all of the fees their employees would otherwise pay. END
 TITLE: What Is an Early Payday App? CONTENT: The Difference Between Payday Loans and Early Payday Apps\n---------------------------------------------------------\nPayday apps distinguish themselves from payday loans because the apps charge low fees and interest rates, or no fees or interest. In contrast, payday loans can be one of the most expensive types of loans available, with high interest rates that can multiply the initial loan amount. END
 TITLE: What Is an Early Payday App? CONTENT: The Pros and Cons of Using Early Payday Apps\n--------------------------------------------\nWhile early payday apps can be a good alternative to payday loans, they're not free of risk. Consider the upsides and downsides before using one of these services.\n### Pros\n*   **Easy access to emergency funds**: You can often get money into your account within a few days. Sometimes, on the same day.\n*   **Few or no fees**: Unlike other short-term loans, early payday apps can carry few added charges.\n*   **No credit check**: Enrollment and access isn't based on your credit and won't hurt your credit.\n### Cons\n*   **Not a long-term solution**: The money can help with a one-off emergency, but you'll need to repay the money quickly, and the fees can add up. While $3 or $5 to get $100 might seem reasonable, look at it this way: Paying $5 in interest on a 14-day, $100 loan equals about 130% APR.\n*   **Limited funding**: Most options will give you around $100 to $250 unless the advance is based on your income (even then, there may be limits). You may need to tap your savings or take out an emergency loan for larger surprise expenses.\n*   **Look for reviews**: These types of services are relatively new, and you should look for reviews before signing up. Also, look out for high-cost lenders that market themselves as payday loan alternatives. END
 TITLE: What Is an Early Payday App? CONTENT: Will Early Payday Apps Impact Your Credit?\n------------------------------------------\nEarly payday apps generally won't impact your credit as they're advances on your paycheck rather than a loan or line of credit. Even some of the loan-type programs don't report the loans to the credit bureaus.\nHowever, as with other types of accounts that aren't traditionally reported to the credit bureaus, you still want to repay the money on time. Otherwise, the company could send or sell your account to collections, and the collection account could be reported to the bureaus and hurt your credit. END
 TITLE: What Is an Early Payday App? CONTENT: Build Credit to Give Yourself More Options\n------------------------------------------\nEarly payday apps can help smooth your income, allowing you to better align your payday with your bills' due dates. And, with their relatively low fees, they're certainly a better option than payday loans. However, a small advance isn't going to address a larger financial problem.\nIf you don't already, tracking your money with a budget may help you find ways to save money between paydays. Building good credit can also make it easier to qualify for less expensive financial products that can help with small or large expenses. Experian offers free credit reports and scores to people who sign up and offers insight and advice on how to improve your scores. END
 TITLE: Are Personal Loan Lenders Offering COVID-19 Debt Relief? CONTENT: What Types of Assistance Do Personal Loan Lenders Offer?\n--------------------------------------------------------\nAssistance programs won't forgive your debt, but they can make it easier to manage your bills without paying extra fees or hurting your credit. Personal loan lenders' assistance programs may offer: END
 TITLE: Are Personal Loan Lenders Offering COVID-19 Debt Relief? CONTENT: Bank and Personal Loan Lender Assistance Pages\n----------------------------------------------\nMany lenders have created a page or blog post about their COVID-19 response and how you can contact them to request assistance. They may also provide examples of the types of assistance they offer, but you generally have to submit a form or call customer service to inquire about your specific eligibility and options.\nAvant\nBank of America\nBBVA\nBMO Harris\nBCU\nBestEgg\nCapital One\nDiscover\nEarnest\nEloan\nFreedomPlus\nHSBC\nLendingClub\nLendingPoint\nLendUp\nLightStream\nMarcus by Goldman Sachs\nMariner Finance\nNavy Federal Credit Union\nNetCredit\nOneMain Financial\nOportun\nOppLoans\nPayoff\nPenFed\nPersonify\nPNC\nPossible Finance\nProsper\nRegional Finance\nRegions\nRISE\nSantander\nSECU\nSoFi\nTD Bank\nTruist (formerly BB&T and SunTrust)\nUpgrade\nUpstart\nU.S. Bank END
 TITLE: Are Personal Loan Lenders Offering COVID-19 Debt Relief? CONTENT: How Can Assistance Programs Impact Your Credit?\n-----------------------------------------------\nThe Coronavirus Aid, Relief and Economic Security (CARES) Act requires creditors to continue reporting your account as current as long as it was in good standing when the assistance (called an \"accommodation\" in the act) was put in place. The rule will continue to apply until 120 days after the national emergency declaration ends.\nIf your account delinquency predates these assistance programs, or your account becomes late and your lender hasn't granted you assistance, creditors can continue to report your payments as delinquent, which can hurt your credit. However, if you pay the past-due amount and you bring it current—which may be easier if you don't have to make monthly payments—then the creditor will need to start reporting your account as current. END
 TITLE: Are Personal Loan Lenders Offering COVID-19 Debt Relief? CONTENT: Staying in Control of Your Finances During a Crisis\n---------------------------------------------------\nYou can learn more about financial assistance programs and managing your credit in these posts:\n*   New Unemployment Benefits Under the CARES Act Stimulus\n*   How the CARES Act Stimulus Can Help Your Small Business\n*   COVID-19 (Coronavirus) Credit Card and Debt Relief\n*   Protecting Your Credit During the COVID-19 (Coronavirus) Crisis\n*   How Does a Natural or Declared Disaster Impact My Credit?\nThe CARES Act offers automatic payment suspension on certain federal student loans and expands forbearance policy on federally backed mortgages.\nAdditionally, Experian, TransUnion and Equifax are giving U.S. consumers free weekly credit reports through AnnualCreditReport.com. If you want to monitor your credit score and report, you can also get free credit monitoring and FICO® Score☉ tracking from Experian. END
 TITLE: How to Calculate Credit Card Utilization CONTENT: Calculating Your Credit Utilization Ratio\n-----------------------------------------\nYou can calculate your credit utilization ratio for each of your credit cards, and your total utilization ratio for all your credit cards—and you should, because credit scoring models take both of these calculations into account when determining your credit scores.\nCredit utilization ratios depend on the numbers in your credit report, not your current account balances. So the first step is to review your credit report. You can get a free Experian credit report every 30 days, or a free report from each of the credit reporting agencies (Experian, TransUnion and Equifax) once a year at AnnualCreditReport.com.\nOnce you have your credit report, divide each credit card's balance by the card's credit limit. For example, if a card's balance is $2,500 and the credit limit is $5,000, then the result is 0.5. Multiply by 100 to see the result as a percentage—50%. That is your credit utilization ratio for that card.\nIf you have multiple credit cards, add up all their balances and divide that total by the sum of the cards' credit limits. Perhaps you have three cards with balances of $500, $1,500 and $0, and their credit limits are $3,000, $5,000 and $2,000. The total balance ($2,000) divided by the total credit limit ($10,000) gives you an overall utilization rate of 0.2, or 20%.\nYour utilization ratio will change as your credit card issuers send updates to the credit bureaus. Generally, this happens around the end of your statement period, which is why you can pay your credit card bill in full each month and still have a high utilization rate that hurts your credit scores. END
 TITLE: How to Calculate Credit Card Utilization CONTENT: How Does Credit Utilization Affect Your Credit Scores?\n------------------------------------------------------\nYour utilization ratio can impact both your VantageScore® and FICO® credit scores. In either case, your individual credit cards' utilization rates and your overall utilization rate (if you have several cards) are important to your credit scores.\nFor VantageScore credit scores, your utilization falls within the \"total credit usage, balance and available credit\" category. The company lists this as \"extremely influential\" in determining your VantageScore 4.0 credit score.\nWith FICO® Scores☉ , your utilization is part of the \"amounts owed\" category, which makes up approximately 30% of your FICO® Score. But utilization is only a part of the category, which also includes how much you owe on various accounts and how many accounts have balances.\nA lower utilization ratio is better than a high utilization ratio for all your credit scores. However, sometimes having a low utilization rate is better than having no utilization.\nAlso, keep in mind most credit scoring models only look at your most recently reported balances. Having an exceptionally high utilization rate may hurt your scores one month, but bringing down your reported balance and lowering your utilization could help your scores the next.\nBecause of this, your credit utilization ratio is one of the things you can address if you want to improve your scores quickly.\nKeep in mind, however, that the latest VantageScore and FICO® Score models consider trended data, which may include your utilization rates over time. If you tend to carry a balance and only make minimum payments, that could hurt those scores. If you pay your bill in full each month, that could help those scores—even if you occasionally have a high utilization rate. END
 TITLE: How to Calculate Credit Card Utilization CONTENT: What Is a Good Credit Utilization Ratio?\n----------------------------------------\nA good utilization ratio is a low utilization ratio, such as 1% to 9%. Higher ratios could indicate difficulty affording future bill payments, which is why high utilization rates can hurt your credit scores.\nYou could still have a good or excellent score with a utilization rate of 10% or higher, but you generally want to aim for a ratio below 30%. A utilization ratio topping 30% can do more serious damage to your credit scores. Ideally, keep your ratio in the low single digits for the best credit scores. END
 TITLE: How to Calculate Credit Card Utilization CONTENT: How to Lower Your Credit Utilization Ratio\n------------------------------------------\nThe utilization ratio calculation looks at two numbers: your balance and your credit limit. Any actions that decrease your reported balances or increase your reported credit limits can lower your utilization rate. These could include:\n*   **Making early credit card payments**: Paying down your credit card balance before the end of your statement period (when many card issuers report to the credit bureaus) could lead to a lower balance being reported.\n*   **Using credit cards less often**: Using other payment methods, such as debit cards or cash, will also lower credit card balance and utilization rate.\n*   **Increasing your card's credit limit**: You can ask your card issuer to increase your credit limit. This can sometimes result in a hard inquiry, however, which could temporarily hurt your credit scores a little. Also, it may only be worth asking if your credit or income has increased since you first opened the card.\n*   **Opening a new card**: Opening a new credit card will also increase your available credit, which can lower your overall utilization rate. However, you'll want to find a credit card that offers additional benefits as well.\n*   **Using a personal loan to consolidate debt**: If you're working to pay off credit card debt, you could look into consolidation with a personal loan. You may be able to save money if you qualify for a loan with a low interest rate, and you'll lower your utilization rate by moving the debt from a revolving to installment account. Just resist the temptation to build up a balance on your newly zeroed-out cards.\n*   **Keeping credit cards open**: There can be good reasons to close credit cards, such as an annual fee when you don't receive enough benefits to justify it or an open card leading to overspending. However, keeping credit cards open also increases your available credit limit, which can lower your utilization rate.\nYou don't need to use every strategy to maintain a low utilization rate—pick and choose what works for you and your financial situation. END
 TITLE: How to Calculate Credit Card Utilization CONTENT: Track Your Credit Score for Free\n--------------------------------\nIdeally, you can maintain low utilization and pay your bills in full to avoid paying interest. But don't worry too much if you occasionally have a high utilization ratio.\nYou may see your score drop for a time, but your score can also increase as you pay off your credit card balance. And other factors, such as whether you pay your bills on time, can be even more important to building good credit.\nYou can also sign up for Experian's free credit report and FICO® Score monitoring. When you log in to your account, the program automatically calculates your utilization ratio based on your Experian credit report (both your overall utilization and utilization for each account), and shows you which other factors are most impacting your score. END
 TITLE: Do Credit Cards Require Citizenship? CONTENT: What Roadblocks Could Non-Citizens Face When Applying for Credit?\n-----------------------------------------------------------------\nWhether you're new to the U.S. or have been here for years but aren't a citizen, you may face several issues when applying for a credit card:\n*   **Some cards are only available to legal permanent residents.** Most credit card companies offer credit cards to legal residents and U.S. citizens alike. Undocumented immigrants may have fewer options, but there are credit card issuers, banks and credit unions that offer credit cards to applicants regardless of citizenship status.\n*   **You might not have or be eligible for an SSN.** Card issuers may ask for your SSN on the application. If you can't get an SSN, you may be able to apply for an Individual Taxpayer Identification Number (ITIN) from the IRS and use it instead. ITINs are issued to people who need to file federal income tax returns in the U.S. but don't qualify for an SSN.\n*   **You might not be eligible for an ITIN, either.** If you don't qualify for an SSN or ITIN, you can apply for certain credit cards using other identification documents, such as your passport. However, you may need to submit your application in a branch or apply over the phone rather than online.\n*   **You don't have any credit history in the U.S.** Whether or not you're a citizen, getting approved for a new card can be difficult without a good credit history. But you may have more options than U.S. citizens if you've established credit or banking relationships in your home country.\nWith these roadblocks and detours in mind, you can start identifying which credit cards you might be able to get before submitting your application. END
 TITLE: Do Credit Cards Require Citizenship? CONTENT: Finding a Card That Meets Your Needs\n------------------------------------\nFiguring out which card is best can depend in part on your citizenship status and credit history outside the U.S.\nFor example, if you're a permanent resident with an SSN and no credit history, a secured card could be a good fit—these are also popular for U.S. citizens who are building credit for the first time.\nThose studying in the U.S. on a student visa may alternatively qualify for a student credit card. Some cards, such as the Deserve® EDU, were even created with international students in mind. You can apply with a copy of your passport, student visa and immigration forms, although you'll also need an eligible U.S. bank account to link to your account during the application.\nSeveral major card issuers, such as Barclays and Discover, won't take ITINs from applicants instead of an SSN. But many card issuers will accept an ITIN, including:\n*   American Express\n*   Bank of America\n*   Capital One\n*   Chase\n*   Citi\n*   OpenSky\n*   Wells Fargo\nIf you've established credit elsewhere, you may be able to use that to get a card in the U.S. International banks and credit card issuers, such as HSBC and American Express, have programs for professionals who are relocated to the U.S.\nIf you're moving for work, you could also ask your employer if it has any relationships with U.S. financial institutions that offer credit cards to its international employees. END
 TITLE: Do Credit Cards Require Citizenship? CONTENT: What You'll Need to Apply\n-------------------------\nFor the most part, the application process will be the same regardless of your citizenship status. You can often fill out and submit the application online in a few minutes, and it may ask for your:\n*   Name and date of birth\n*   U.S. address\n*   Contact information\n*   SSN or ITIN\n*   Citizenship status\n*   Country of citizenship\n*   Employment status and income\n*   Monthly housing payments\n*   Whether you have a bank account\nIf you're applying with a foreign passport, you may need your passport number and visa information. You also likely won't be able to apply online.\nOnce you submit your application, you could receive a response within a few minutes. If your application isn't approved right away, you can call the credit card issuer to ask why. Your application may have been denied, in which case you could try for a different card. Or, the company may need additional information or documents before making a decision. END
 TITLE: Do Credit Cards Require Citizenship? CONTENT: Using Your New Card to Build Credit in the U.S.\n-----------------------------------------------\nMost major credit issuers will report your new credit card to the major U.S. credit bureaus—Experian, Equifax and TransUnion. As a result, getting and using the card can help you establish or build your credit in the U.S. because your on-time payments will be reflected on your credit report.\nThe card issuer can send your information to the credit bureaus even if you don't have an SSN. And the bureaus can establish and track your credit based on other identifiers, such as your name and ITIN.\nIf you get an SSN later, you can contact your issuer and update your credit card account with your SSN. The card issuer can then send your updated information to the credit bureaus, tying all your information together.\nBut building good credit requires responsible credit use. Having an account with a history of on-time payments can help, as will only using a small portion of your card's credit card limit, since the amount of credit you're using is an important credit scoring factor.\nAs you establish and build your credit, you can also sign up for free credit monitoring with Experian to track your credit report and credit score if you have an SSN. Or, you can use your ITIN and mail a request for your credit report to each of the credit bureaus using the form from AnnualCreditReport.com. END
 TITLE: How Do You Pay a Credit Card Bill? CONTENT: How to Make Your Credit Card Payment\n------------------------------------\nBefore making a payment, you'll need to review your credit card bill to understand how much you owe. Your bill will show your new balance, minimum payment due and payment due date.\n*   **The due date**: The date by which the issuer has to receive payment\n*   **The new balance (or statement balance)**: How much you need to pay if you want to avoid paying interest on future purchases\n*   **The minimum payment**: How much you need to pay to keep your account in good standing\nYour credit card's online account or app may also show your current balance. The current balance may be higher than your statement balance, as it will include transactions (such as purchases or fees) that have occurred since the statement was created. Paying your current balance isn't necessary, but it could lower your next statement's balance.\nIf you don't make at least the minimum payment within 30 days of your due date, the credit card issuer may report the late payment to the credit bureaus. But that's not an excuse to delay payment until the last second: You may be charged a late payment fee and face other consequences for being just one day late on a credit card payment.  \n### Credit Card Payment Methods\nCredit card issuers may offer you different options for making your bill payments:\n*   **Autopay**: Request automatic payments from a linked account each month. You can generally choose the amount, or opt for the statement balance or minimum payment, and choose your payment date.\n*   **Online payments**: You can log in to your online account or app and manually request a payment from a linked account. Online payments make it easy to request a payment at any time, and you can choose the amount to pay.\n*   **In-person payments**: You may be able to make a payment at a bank branch or ATM, which can be a fast and secure way to make your payments.\n*   **By phone**: Call the bank to make your payment after confirming your credit card account and payment method. The number may direct you to an automated service line.\n*   **Mail or wire a payment**: You may be able to mail a personal check, cashier's check or money order, or send a wire for your payment. Other options may be better as your payment could get lost or arrive after your due date. If you decide to mail a payment, don't mail cash.\nYou'll also want to review your credit card statement or the card issuer's website for processing times and deadlines. For example, some credit card companies might consider your payment late if they don't receive it by a certain time on the due date. Others may process the payment that day, or process it the next day but not consider you late.\nSetting up autopay for at least the minimum payment can be a good way to avoid missing the cutoff point. If you monitor your balance and bank account, or maintain a large enough bank account balance, using autopay for the full statement amount can make managing your credit card easier. However, be careful, as autopay can also lead to overdrafting your account.\nWhen Should You Pay Off Your Credit Card Balance?\n-------------------------------------------------\nIdeally, you would pay your full statement balance before the payment due date each month. If you do this, and your card has a grace period, you won't pay interest on your new credit card purchases.\nBut if you can't pay your statement balance in full, don't worry—just try to make the minimum payment by the due date. Any balance remaining on your credit card will carry over, or \"revolve,\" to the next month's balance and be susceptible to interest.\nOnce you've revolved a balance, paying it off before your payment due date can help you save money as credit card issuers generally charge interest daily. In some cases, paying early can also help your credit scores.  \nWill Carrying a Balance Affect My Credit Score?\n-----------------------------------------------\nWhile a late payment won't hurt your credit scores unless you're 30 or more days late, carrying a balance may have a more immediate impact. Whether it hurts your scores can depend on the balance amount relative to your available credit.\nThe important factor here is your credit utilization ratio, which measures the amount of available credit you're using. It's usually shown as a percentage that compares a card's balance against its credit limit. For example, if your credit card's limit is $200 and your balance is $100, your credit utilization ratio is 50%.\nYour utilization is an important credit scoring factor, and a lower utilization rate is best for your scores. A high utilization rate (above 30%) can start to do harm to your scores.\nOne potentially confusing point is that the important numbers here are the card's balance and credit limit as they appear on your credit report. These numbers come from when the credit card company sends an update to the credit bureaus, which will often happen around the end of your statement period.\nAs a result, the balance may be closer to your statement balance than your current balance if you check your account online. The arrangement means you can also have a high utilization rate even if you pay your bill in full each month. If you want to avoid this, you could pay down your balance throughout the month.  \nTips for Keeping Up With Credit Card Payments.\n----------------------------------------------\nYou can stay on top of your credit card payments by monitoring your spending, credit card account and payment method. Here are a few tips:\n*   **Set up autopay.** Using autopay for at least the minimum monthly payment can help you avoid late payment fees.\n*   **Choose your payment dates.** Many card issuers let you choose your bill's due date. Choose a date that's easy to remember and aligns with your finances (the day after you're paid, for instance).\n*   **Sign up for notifications.** If your card issuer offers it, you may be able to sign up for email, text and app notifications. You can set up alerts for when your balance goes above a certain point or to let you know your bill is soon due.\n*   **Monitor your spending.** It's easier to pay off your bill in full if you limit your spending to purchases you can afford. The advice to treat your credit card like a debit card, spending only what you have, can come in handy here.\n*   **Make payments throughout the month.** Making early payments can lead to lower utilization rates and help you avoid surprisingly large bills. If you get paid weekly or bi-weekly, you could choose those times to pay down your credit card bill as well.\nMonitor Your Credit Card Accounts\n---------------------------------\nKeeping track of your credit card accounts and bills can become more complicated if you have several cards. Creating a budget and using budget software that lets you link and sync multiple accounts can help you stay on top of your spending and balances. You can also sign up for Experian's free credit monitoring service to review the balances on your credit report and get automatic notifications if there are any suspicious changes. END
 TITLE: How Do You Pay a Credit Card Bill? CONTENT: When Should You Pay Off Your Credit Card Balance?\n-------------------------------------------------\nIdeally, you would pay your full statement balance before the payment due date each month. If you do this, and your card has a grace period, you won't pay interest on your new credit card purchases.\nBut if you can't pay your statement balance in full, don't worry—just try to make the minimum payment by the due date. Any balance remaining on your credit card will carry over, or \"revolve,\" to the next month's balance and be susceptible to interest.\nOnce you've revolved a balance, paying it off before your payment due date can help you save money as credit card issuers generally charge interest daily. In some cases, paying early can also help your credit scores. END
 TITLE: How Do You Pay a Credit Card Bill? CONTENT: Will Carrying a Balance Affect My Credit Score?\n-----------------------------------------------\nWhile a late payment won't hurt your credit scores unless you're 30 or more days late, carrying a balance may have a more immediate impact. Whether it hurts your scores can depend on the balance amount relative to your available credit.\nThe important factor here is your credit utilization ratio, which measures the amount of available credit you're using. It's usually shown as a percentage that compares a card's balance against its credit limit. For example, if your credit card's limit is $200 and your balance is $100, your credit utilization ratio is 50%.\nYour utilization is an important credit scoring factor, and a lower utilization rate is best for your scores. A high utilization rate (above 30%) can start to do harm to your scores.\nOne potentially confusing point is that the important numbers here are the card's balance and credit limit as they appear on your credit report. These numbers come from when the credit card company sends an update to the credit bureaus, which will often happen around the end of your statement period.\nAs a result, the balance may be closer to your statement balance than your current balance if you check your account online. The arrangement means you can also have a high utilization rate even if you pay your bill in full each month. If you want to avoid this, you could pay down your balance throughout the month. END
 TITLE: How Do You Pay a Credit Card Bill? CONTENT: Tips for Keeping Up With Credit Card Payments.\n----------------------------------------------\nYou can stay on top of your credit card payments by monitoring your spending, credit card account and payment method. Here are a few tips:\n*   **Set up autopay.** Using autopay for at least the minimum monthly payment can help you avoid late payment fees.\n*   **Choose your payment dates.** Many card issuers let you choose your bill's due date. Choose a date that's easy to remember and aligns with your finances (the day after you're paid, for instance).\n*   **Sign up for notifications.** If your card issuer offers it, you may be able to sign up for email, text and app notifications. You can set up alerts for when your balance goes above a certain point or to let you know your bill is soon due.\n*   **Monitor your spending.** It's easier to pay off your bill in full if you limit your spending to purchases you can afford. The advice to treat your credit card like a debit card, spending only what you have, can come in handy here.\n*   **Make payments throughout the month.** Making early payments can lead to lower utilization rates and help you avoid surprisingly large bills. If you get paid weekly or bi-weekly, you could choose those times to pay down your credit card bill as well. END
 TITLE: How Do You Pay a Credit Card Bill? CONTENT: Monitor Your Credit Card Accounts\n---------------------------------\nKeeping track of your credit card accounts and bills can become more complicated if you have several cards. Creating a budget and using budget software that lets you link and sync multiple accounts can help you stay on top of your spending and balances. You can also sign up for Experian's free credit monitoring service to review the balances on your credit report and get automatic notifications if there are any suspicious changes. END
 TITLE: Can I Trust Online Personal Loan Lenders? CONTENT: The Difference Between Online Lenders and Traditional Lenders\n-------------------------------------------------------------\nOnline lenders are generally financial technology (fintech) companies, many of which launched and grew in the years following the Great Recession. Some online lenders partner with banks to fund the loans, while others use different sources of funding, such as a peer-to-peer model that connects investors and borrowers.\nOnline personal loan lenders tend to distinguish themselves from traditional lenders in several ways:\n*   **They focus on one or two products.** An online lender might only offer one product, such as a personal loan, rather than a full range of banking services. Some have grown, however, and now offer more than one product, such as personal loans and personal lines of credit.\n*   **They automate much of the application review and underwriting process.** The focus on technology, automation and use of alternative data allows online lenders to quickly make a decision when you apply for a loan. While this method of loan approval may make some borrowers nervous, reputable lenders can make this process safe and efficient.\n*   **They work with a wide variety of borrowers.** Banks tend to offer personal loans only to the most creditworthy applications, if at all. Some online lenders also primarily work with those who have excellent credit, but others focus on serving people with poor credit.\nNot to be outdone by online-only lenders, some banks and credit unions have launched their own online platforms or partnered with fintech companies to offer personal loans. These may be similar to the personal loans you can receive from online-only lenders. END
 TITLE: Can I Trust Online Personal Loan Lenders? CONTENT: Online Personal Loans Are Increasingly Popular\n----------------------------------------------\nOnline personal loans are relatively new compared with other types of loans, and they make up a small percentage of the overall outstanding consumer debt in the U.S. However, personal loans stand out as the fastest-growing debt category. Experian found the number of personal loan accounts increased by 11% from 2018 to 2019. In 2019, more than 1 in 4 Americans had a personal loan.\nThe growth of online fintech companies gives consumers easy access to personal loans and is partially responsible for this growth. Many people find they can save money by using a personal loan to consolidate existing high-rate debt or to fund large purchases. In fact, the Federal Reserve Bank of St. Louis found that across the board, consumers who have poor, good or excellent credit receive a lower rate from fintech lenders than equivalent consumers who use a credit card. END
 TITLE: Can I Trust Online Personal Loan Lenders? CONTENT: How to Find a Trustworthy Online Personal Loan Lender\n-----------------------------------------------------\nYou may want to start with well-known online lenders or lenders that are offshoots of banks, as these companies rely on their reputation and lending business to survive. For example, you may be familiar with large online-only lenders, such as Avant, LendingClub, Payoff and Prosper, or big banks that offer online personal loans, such as Discover and Marcus by Goldman Sachs.\nIf you're not familiar with a company, or even if you know the name but want to do extra due diligence, take a few steps to verify that it's trustworthy:\n*   **Check the Better Business Bureau (BBB).** Look for the company's rating and any unresolved complaints.\n*   **Look for news stories about the company.** You may find announcements about the company's successes, failures or outstanding lawsuits. These can help you determine which companies you want to work with.\n*   **Read online reviews.** You can often find reviews that discuss the pros and cons of different companies. The content of a review may help you make up your mind when choosing between lenders with similar offers.\n*   **Ask friends, family and colleagues.** While your financial situation may be different from theirs, asking those close to you for recommendations of companies they've used and trust can go a long way to making you more comfortable. You'll still need to do your own research, though, to ensure the company is sound.\n*   **Check its federal registration.** Lenders and loan brokers have to register in every state where they offer loans, and you can often find the page where they list their state licenses by searching the lender's name plus \"license.\" You can then check the license number on your state's website.\nThere are also warning signs that the website or person is running a scam rather than a legitimate company. Watch out for these red flags:\n*   You're asked for an upfront payment\n*   You're guaranteed to be approved for a loan\n*   You can't verify the company's license or find good reviews online\n*   You feel pressured to quickly accept the terms\n*   You can't find the lender's offices when searching online\n*   You receive an unsolicited call, email or text asking if you want to borrow money\n*   You don't see \"https\" in the website's URL—the \"s\" stands for secure\nThere are many legitimate and trustworthy online lenders. If you come across a red flag, or something seems too good to be true, it may be best to move on. END
 TITLE: Can I Trust Online Personal Loan Lenders? CONTENT: How to Apply for a Personal Loan Online\n---------------------------------------\nApplying for a personal loan online can be a quick and easy process. You may be able to start with a preapproval application, which can tell you if you're likely to get approved and your potential loan amount and terms without impacting your credit.\nIf you're not preapproved, you may want to try a different lender or focus on improving your credit before trying again. If you are preapproved, the lender may give you several loan options.\nFor example, you might be preapproved for up to $10,000 with either a three-, four- or five- year repayment term. Your interest rate and monthly payment will depend on how much you borrow, which repayment term you choose and your creditworthiness. After reviewing your options, you can submit an application.\nIf you didn't already do so, you might need to submit verification documents after choosing your loan. These could include copies of a government-issued identification, proof of your address, and pay stubs or tax returns to show your income.\nOnce the lender reviews your documents, it may approve your loan and send you the money. It will generally be electronically deposited into your bank account within a couple of business days.\nHere are a couple online lenders offering personal loans:\n### LendingPoint\nApply\non LendingPoint's website\n**Recommended FICO® Score\\***\nFair - Good\nAmount\nAvailable loan amounts: $2,000 to $25,000\nEst. monthly payment: $95 to $1,437\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   Personal loans from $2,000 to $25,000\n*   Rates from 15.49% to 35.99% APR with no prepayment penalties\n*   Check your rate for free without impacting your credit score\n*   Qualified customers receive offers in three simple steps, and funds in as little as 24 hours if approved\n*   Simple and Secure - quick online application\n*   LendingPoint's customer success representatives are available online or by phone 24\/7, just call 888-969-0959\n*   Terms from 24 - 60 months\nDisclosure\n### SoFi\nApply\non SoFi's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $5,000 to $100,000\nEst. monthly payment: $217 to $4,944\nGrace period: 10 days\nApplication fee: $0\n##### Loan Details\n*   Personal Loans with low fixed rates\n*   Borrow up to $100,000\n*   No Origination Fees, No Prepayment Penalties, and No Late or Overdraft Fees\n*   Simple online application with live support 7 days a week\n*   Apply Now\nDisclosure END
 TITLE: Can I Trust Online Personal Loan Lenders? CONTENT: ### LendingPoint\nApply\non LendingPoint's website\n**Recommended FICO® Score\\***\nFair - Good\nAmount\nAvailable loan amounts: $2,000 to $25,000\nEst. monthly payment: $95 to $1,437\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   Personal loans from $2,000 to $25,000\n*   Rates from 15.49% to 35.99% APR with no prepayment penalties\n*   Check your rate for free without impacting your credit score\n*   Qualified customers receive offers in three simple steps, and funds in as little as 24 hours if approved\n*   Simple and Secure - quick online application\n*   LendingPoint's customer success representatives are available online or by phone 24\/7, just call 888-969-0959\n*   Terms from 24 - 60 months\nDisclosure END
 TITLE: Can I Trust Online Personal Loan Lenders? CONTENT: ### SoFi\nApply\non SoFi's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $5,000 to $100,000\nEst. monthly payment: $217 to $4,944\nGrace period: 10 days\nApplication fee: $0\n##### Loan Details\n*   Personal Loans with low fixed rates\n*   Borrow up to $100,000\n*   No Origination Fees, No Prepayment Penalties, and No Late or Overdraft Fees\n*   Simple online application with live support 7 days a week\n*   Apply Now\nDisclosure END
 TITLE: Can I Trust Online Personal Loan Lenders? CONTENT: Online Lenders Can Provide Loans Quickly\n----------------------------------------\nWorking with an online lender can be a quick and easy process. You can complete the entire application process from your home, there's often a short review process and then the money will get electronically deposited into your account.\nYou can also easily compare online lenders and your potential loan's terms. And rather than going to each website one by one, you can use a tool like Experian CreditMatchTM to get matched with loan offers from Experian's personal loan partners. Like other companies, Experian may receive compensation from the lenders, but that doesn't impact how or where the personal loan offers appear. You can also filter the results based on your desired loan amount, repayment terms and how you plan to use the money. END
 TITLE: Do Personal Loans Charge More Interest Than Credit Cards? CONTENT: What Is the Difference Between Credit Card Interest and Loan Interest?\n----------------------------------------------------------------------\nThe interest rate on your credit card or loan can influence how much you'll pay in financing charges when you borrow money. However, interest works differently with credit cards and personal loans. END
 TITLE: Do Personal Loans Charge More Interest Than Credit Cards? CONTENT: How Your Credit Score Impacts Your Interest Rate\n------------------------------------------------\nFor both credit cards and personal loans, your credit score when you apply can affect the interest rate you'll be offered on your account. Having a higher score can help you get a lower rate, which will save you money.\nThe most extreme example of money-saving you can realize is on a mortgage, as the large loan amount and long repayment term means even a slight change in your interest rate can drastically change what you'll owe.\nBased on a FICO® calculator, the total amount of interest you might pay on a 30-year, $300,000 mortgage can range from $154,867 (if your score is in the 760 to 850 range) to $252,430 (if your score is in the 620 to 639 range). Having poorer credit could increase your monthly payment by about $300, and lead to paying an extra $97,000 in interest over the lifetime of the loan.\nWhile the impact won't be as extreme with a personal loan or credit card, your credit score will still affect the rate you receive. Additionally, most credit cards and some personal loans have a variable rate, which means the interest rate may rise or fall after you open your account. END
 TITLE: Do Personal Loans Charge More Interest Than Credit Cards? CONTENT: What's a Good Interest Rate for a Personal Loan?\n------------------------------------------------\nA good personal loan rate is in the mid-single digits (for example, around 6% APR). However, many personal loans have an APR range, and only the most creditworthy applicants will qualify for the lowest advertised rate. You can sometimes get an estimated loan offer from a lender by applying for a loan prequalification with a soft inquiry, which won't impact your credit.\nReviewing multiple personal loan offers can help you find the lender that will likely offer you the lowest rate before applying. Submitting the loan application could result in a hard inquiry, which may hurt your credit a little temporarily. END
 TITLE: Do Personal Loans Charge More Interest Than Credit Cards? CONTENT: How to Choose a Credit Card With Low Interest\n---------------------------------------------\nSimilar to personal loans, many credit cards also have an APR range. If you're comparing credit cards, you can look at the APR ranges to see which cards might offer the lowest rate. But the APR you receive will depend on your creditworthiness.\nAlso, remember, credit card APRs don't take fees into account. To determine which card may be least expensive for you, also compare the cards' annual fees and usage-based fees, such as balance transfer, cash advance and foreign exchange fees.\nYou can also narrow down your search by focusing on low rate cards. These tend to have fewer benefits and rewards than other credit cards, but a lower APR can save you money if you can't pay your bill in full each month. Credit cards from credit unions may be a good choice, as the National Credit Union Administration (NCUA) caps credit card interest rates at 18% APR. Credit cards from other issuers may have APRs in the mid- to high-20s.\nSome credit card companies also offer cards with an introductory interest rate, such as 0% APR, during a promotional period. Card issuers also occasionally offer existing cardholders a temporary lower rate, and you can also call your issuer and try to negotiate a lower interest rate on your card if your credit situation has improved since you opened your account. END
 TITLE: Do Personal Loans Charge More Interest Than Credit Cards? CONTENT: Finding the Least Expensive Option\n----------------------------------\nDepending on your credit and financial situation, you may find a personal loan with a higher or lower interest rate than a credit card. But that's only part of the picture. Consider the fees involved with both financing options and how the creditors charge and collect interest.\nIf you want to compare offers, you can use a tool like Experian CreditMatchTM for personal loans and credit cards. After signing up, you can see matches based on your credit score, and using the service won't hurt your credit. END
 TITLE: How to Choose a Department Store Credit Card CONTENT: Choosing a Department Store Card\n--------------------------------\nDepartment store cards are co-branded credit cards offered by department stores and card issuers. Similar to other types of retail credit cards, department store cards come in two varieties:\n*   **Closed-loop cards**: You'll only be able to use a closed-loop card at the department store that offers the card. However, if the department store has multiple brands, you may be able to use the card at all of its locations.\n*   **Open-loop cards**: This card will have a payment network logo on it, such as Visa or Mastercard. You can use these cards at any store that accepts cards from that network.\nMany department stores offer both closed- and open-loop cards. An open-loop card will offer the most flexibility, and may even offer more rewards since you can earn benefits wherever you shop. However, you may find it's easier to get approved for a closed-loop card. END
 TITLE: How to Choose a Department Store Credit Card CONTENT: What to Consider Before Getting a Department Store Card\n-------------------------------------------------------\nChoosing the right card will depend on your financial situation and lifestyle. There are a lot of features and fees to compare, and with department store cards, you may want to examine four areas in particular: END
 TITLE: How to Choose a Department Store Credit Card CONTENT: When Getting a Department Store Credit Card Makes Sense\n-------------------------------------------------------\nA department store credit card could make sense if you're making a large purchase and the card has a promotional interest offer or you'll receive a big discount. But the cards are probably best for people who frequent the store.\nIf you're a loyal shopper, you can benefit from extra savings, increased rewards on purchases, special discounts and the other perks the card offers. Don't let opening a store card keep you from comparison shopping, though. Even after accounting for the perks, the same purchase might be cheaper at a different store. END
 TITLE: How to Choose a Department Store Credit Card CONTENT: Can I Get a Department Store Card With Bad Credit?\n--------------------------------------------------\nIt may be easier to get approved for a department store card than a general purpose card, particularly if you apply for a closed-loop card. If you're new to credit or rebuilding your credit, one of these cards could be a stepping stone even if you don't frequent the store.\nAlternatively, you can look for a secured card. With a secured credit card, you provide the card issuer a security deposit, which becomes your credit limit. Some secured cards have high fees and, similar to store cards, may have high interest rates.\nKnow that applying for a department store card could initially hurt your credit, as the application will lead to a hard inquiry on your credit report. However, if you make your payments on time and keep your balance low, the card could help your credit in the long run. END
 TITLE: How to Choose a Department Store Credit Card CONTENT: Explore Your Offers\n-------------------\nAs you compare credit cards, take a broad view of available cards to help you narrow in on the best choice. You can compare different types of cards and offers in the Experian CreditMatch™ marketplace. END
 TITLE: What to Know Before Closing Your Old Credit Cards CONTENT: How Will Closing a Credit Card Affect Your Credit?\n--------------------------------------------------\nThere are two main ways closing a card can have an impact on your credit score: It can increase your credit utilization ratio, and lower your average account age.\nYour credit utilization ratio, or the amount of credit you're using compared with the amount that's available to you, is one of the most important factors in your scores. Experts say keeping your credit utilization ratio under 30% should be your goal, but the lower, the better. Those with the highest credit scores tend to have utilization ratios in the low single digits. For example, if your credit limit is $1,000, keep your outstanding balance under $300—even better, under $100. Better still, pay off your balance in full before your bill comes due.\nTo determine your current credit utilization ratio, add up all your credit card balances and divide that by your total credit limit. For example, if you have three credit cards with limits of $5,000, $2,000, and $3,000 each, your total credit limit is $10,000. If your current balances across all your credit cards total $3,000, that means your credit utilization ratio is 30%.\nIf you close the credit card with the $3,000 limit, your total credit limit will fall to $7,000. And if your balances stay the same, your credit utilization ratio will shoot up to 43%—potentially dragging your credit scores down.\nBefore closing any account, calculate your total current credit limit, including any new credit lines you've added. If closing an account would bring your utilization ratio close to or above 30%, consider keeping the line open or paying down your card balances.\nRequesting an increase on another one of your credit lines is an option if you do decide to close an account. Be careful, though: Requesting an increased credit limit could potentially appear on your credit report as an inquiry—though this is not always the case. Hard inquiries can result in a slight drop in your score (if it affects your score at all), so it's wise to avoid unnecessary inquiries. This is especially true if you're in the market for a big loan soon, like a mortgage, when every point in your score counts.\nAnother factor that impacts your credit scores is the age of the accounts on your credit report. The older the accounts, the higher your scores. This factor should be less of a worry, however, since accounts closed in good standing remain on your credit report for 10 years after they're closed. Still, closing an account you've had for a long time could eventually have a negative impact since it can lower the average age of your accounts once it does fall off. END
 TITLE: What to Know Before Closing Your Old Credit Cards CONTENT: When Does It Make Sense to Close a Credit Card?\n-----------------------------------------------\nIf you have a rewards credit card with a high annual fee, the question to answer is whether you use the card strategically enough to make the fee worthwhile.\nSay you have a co-branded card from an airline you fly with often. Even if you don't plan to put your primary spending on that card, paying a $99 annual fee could be worth it if the card gets you free checked bags and other airline perks when you travel.\nBut if you're paying a hefty fee and not using any of the card's perks, don't continue to pay it just to keep the credit line open. Instead, call your issuer and ask if they can convert the account to a different card that doesn't come with an annual fee. If they're willing to do so, it could help you maintain the same credit limit, preventing the closure from affecting your credit utilization ratio. END
 TITLE: What to Know Before Closing Your Old Credit Cards CONTENT: How to Close a Credit Card the Right Way\n----------------------------------------\nIf you've decided that canceling a credit card is the right move for you, take these steps first.\n*   **Redeem rewards.** Closing an old rewards card might cause you to forfeit any reward points you might have already accrued, so use your points before you lose them. Depending on the card's terms, you may be able to redeem them as cash back or gift cards. Some cards also give you a 30- or 60-day grace period to use your points after closing the account. Check the details of the specific card and rewards program to confirm the issuer's policy.\n*   **Pay off any balances.** You'll be responsible for any outstanding credit card balances whether or not you pay them off before closing the account. In other words, canceling a credit card won't make that debt disappear. If you're not sure you can afford to pay off the balance in one lump sum, consider moving it to a balance transfer credit card (be warned you'll typically pay a fee to do so). That can give you more time to get rid of the balance, and could even mean paying zero interest for a number of months, though you'll now have another credit account to manage.\n*   **Inform any authorized users on the account.** When you close a credit account with an authorized user on it, that person's score could be affected. If they have no other accounts, for instance, losing your account's history would leave them with no credit history (until they open a new account of their own, and even then, it will take about six months to produce a new score). That's not a reason to avoid closing your account if it's the right choice for you. Let your authorized user know what to expect, and give them a heads-up if possible so they can take steps to strengthen their score by other means. You may even choose to add them as an authorized user on another one of your accounts. END
 TITLE: What to Know Before Closing Your Old Credit Cards CONTENT: Alternatives to Canceling Your Credit Card\n------------------------------------------\nIf you're not ready to cancel a card, you have options. First, contact your issuer and let the company know you're interested in remaining a customer but that you no longer want to use this particular credit account. You could downgrade to a card within the same network that has no annual fee. Ask the issuer how it will treat any rewards you've accrued on your previous card. Or you could request an interest rate reduction, which could help you make a dent in any balance you're carrying and make the account less pricey to maintain.\nMaybe you want to close a credit card because it's tempting you to spend more than you normally would. Curbing that temptation is a solid reason to get rid of a card, but if you're worried about the impact on your credit scores of closing the credit line, limit your access to it in other ways. Take it out of your wallet and keep it in a drawer where you won't see it daily. Some have even taken to literally \"freezing\" a credit card in a block of water they keep in their icebox. You don't have to go that far—just put it in a place where you won't encounter it daily and be encouraged to use it.\nThere is one caveat, however, when it comes to keeping cards open that you don't use. Card issuers may notice that you're not spending anything on them and close them or decrease their credit limit due to inactivity. Such actions can still negatively impact your credit scores. So if you're keeping a card around in order to maintain your credit scores, be sure to use it once in a while—just pay it off immediately to avoid any credit card interest. END
 TITLE: What to Know Before Closing Your Old Credit Cards CONTENT: Deciding Whether to Close a Credit Card\n---------------------------------------\nLike many financial decisions, there are lots of considerations to weigh when you're looking into canceling a credit card. Your decision will be a personal one based on your spending habits, credit history and rewards earnings. But know that there are options as long as you advocate for yourself with your credit card issuer and approach the decision strategically.\nIf your credit health is important to you, get your free credit report and scores from Experian, and sign up for free credit monitoring to better manage your finances over the long term. END
 TITLE: How to Use a Credit Card Responsibly CONTENT: 1\\. Always Pay on Time\n----------------------\nPayment history influences your credit score more than any other factor. On top of the late fees and other penalties you might face, a late credit payment neglected for just a single billing cycle (about 30 days) could result in a negative report sent to credit bureaus that will stay on your record for the next seven years.\nSimplify your monthly payments as much as possible to eliminate errors of both memory and money: Set phone and calendar reminders for your due dates, or schedule one day a month to pay all your bills in one sitting. Even better: Set up automatic payments so you know at least your minimum amount due is paid on time (you can easily add extra payments during the month or set your autopay for a higher amount). Your goal is to make paying bills a relatively stress-free, organized routine; that way, payments can factor neatly into a monthly budget and won't be accidentally overlooked.\nLuckily, you can still protect your credit score from payment mishaps if you react quickly. As soon as you realize a credit card payment is overdue, pay it immediately. If you do so before your next billing cycle closes, your credit won't be affected—but you could still be on the hook for late fees or penalty APRs. Contact your credit card company to find out if they can forgive any penalties and fees. And if you're having difficulty making on-time payments on a regular basis, ask your lender for assistance; they might be able to suggest options, like alternative payment plans. END
 TITLE: How to Use a Credit Card Responsibly CONTENT: 2\\. Pay More Than the Minimum Amount\n------------------------------------\nBudget to pay above the minimum amount on your credit card whenever possible. A minimum payment is always better than a missed or overdue bill, but it may lead to carrying a balance on your account.\nOn your credit card bill, the _statement balance_ illustrates your credit card activity throughout the past billing cycle; your _current balance_ reflects the entirety of your account's up-to-date charges and fees. You don't need to pay your entire current balance every month to avoid accumulating interest. As long as you pay your statement balance each month, those charges won't carry over to the following cycle and you'll avoid incurring any new interest.\nMaking the minimum required payment can lead to expensive interest charges, especially if you're carrying a high balance. Even if you can't pay your complete statement balance, always try to pay some measure above the minimum—even just a little extra can help chip away at future debt. Plus, paying over the minimum helps reduce one of your credit score's most crucial components: credit utilization ratio.\nYour credit utilization ratio compares how much credit you have available (in individual credit card accounts and total) with the portion currently being used. The lower your ratio, the better, but it should stay under 30% overall. For example, an account with a credit limit of $1,000 should maintain less than a $300 total balance to avoid damage to credit scores. END
 TITLE: How to Use a Credit Card Responsibly CONTENT: 3\\. Keep Balances Low by Using Your Card for Necessary Purchases\n----------------------------------------------------------------\nUse your credit card for essential purchases you would make even without a line of credit—groceries or gas for your car, for example. Avoid using your credit card to purchase items you don't truly need and can't afford to pay off quickly.\nUsing your credit card for everyday spending can help you build a strong credit history and allow you to earn rewards if your card offers them, such as cash back or travel miles. Plus, charging on a credit card tends to be safer than on a debit card.\nAvoid charging more significant expenses, such as rent or medical bills, unless you have high credit limits and know you'll pay off the purchases every month. Larger purchases can take up too much space in your available credit, boosting your utilization ratio and hurting your credit scores. END
 TITLE: How to Use a Credit Card Responsibly CONTENT: Common Credit Card Mistakes to Avoid\n------------------------------------\nMaking mistakes when managing your credit card accounts can cost you credit score points and penalties. Keep the credit fundamentals above in mind to steer clear of common mishaps, and avoid the following: END
 TITLE: Can I Get a Credit Card at 16? CONTENT: How Old Do You Have to Be to Get a Credit Card?\n-----------------------------------------------\nYou can't get your own credit card if you're under the age of 18. But you can become an authorized user (more on that below).\nEven after you turn 18, the Credit CARD Act of 2009 states you'll need to have either proof of independent income or a cosigner over the age of 21. Since most card issuers don't allow cosigners, that means you'll generally need to A) be at least 18 and B) have income through a job or scholarship before you can get your own starter credit card.\nUnder 18? Your best bet is to become an authorized user on someone else's credit card. END
 TITLE: Can I Get a Credit Card at 16? CONTENT: What Credit Cards Can 16-Year-Olds Get?\n---------------------------------------\nAs a 16-year-old, your only real entrance into the credit card kingdom is to become an authorized user on the card of a trusted adult. For simplicity's sake, let's just say that's one of your parents.\nAll of the major credit card issuers allow authorized users who are 16. Many of them have no minimum age requirements whatsoever, meaning you could become an authorized user as soon as your parents decide you're ready.\nAs an authorized user, you'll receive your own credit card—with your name on it and everything!—but it'll have the same number as your parent's credit card.\nWhile you'll be able to make purchases on the credit card (with your parent's permission, of course), you won't be legally responsible for the bill. Just be sure you know whether your parents expect you to cover most or all of your spending, and know that they will get a detailed breakdown of everything you spend. END
 TITLE: Can I Get a Credit Card at 16? CONTENT: How Becoming an Authorized User Affects Your Credit\n---------------------------------------------------\nAs a 16-year-old, you probably don't have a credit report because you haven't taken out credit yet. When your parent adds you as an authorized user, the credit card issuer will report the new account to the credit bureaus—which will, in turn, generate a credit report.\nIf your parent's credit card is in good standing—if they're carrying a low balance and paying their bill on time—getting added as an authorized user will likely help build your credit scores. That's why it's important to only become an authorized user on the card of an adult with good financial habits.\nAnother crucial thing to check is whether your parent's credit card issuer reports the behavior of underage authorized users to all three major credit bureaus. While American Express and Wells Fargo allow underage authorized users, for example, they won't report your behavior to the credit bureaus until you turn 18. END
 TITLE: Can I Get a Credit Card at 16? CONTENT: Alternatives to Credit Cards for 16-Year-Olds\n---------------------------------------------\nNot quite ready to become an authorized user on a credit card?\nIf you want a card that will let you learn to budget or stop carrying cash, then consider getting a debit card or prepaid card instead.\nDebit cards are connected to your bank account. They allow you to spend the balance in your checking account, either by withdrawing cash from the ATM or swiping the card at stores. While convenient, they don't help you build credit (since you are spending your own money every time you use the card).\nPrepaid cards are the ones you see hanging on the rack at pharmacies, supermarkets and gas stations. You buy them for a set amount—say, $100—and can refill them as needed. Just be warned that they often come with a slew of fees. END
 TITLE: Can I Get a Credit Card at 16? CONTENT: Pros and Cons of Getting a Credit Card at 16\n--------------------------------------------\nEven if you're set on getting a credit card at 16, you should make sure you're well-versed in the pros and cons of your decision.\nHere are the pros:\n*   **Build credit.** As long as the primary cardholder's account is in good standing, becoming an authorized user is one of the best ways to build credit before college. Then, once you turn 18, you might be able to get credit—such as auto loans or private student loans—without a cosigner.\n*   **Practice good financial habits.** Using credit from a young age can teach you important skills such as budgeting, paying bills on time and spending less than you earn.\n*   **Have access to emergency backup.** Out of gas? Forgot to pay for a field trip? A credit card can offer an easy way to cover last-minute needs.\n*   **Enjoy enhanced security.** Most credit cards offer $0 fraud liability policies, making them superior to debit cards if your information is compromised.\n*   **Earn rewards.** The primary cardholder (usually your parent) may be able to get credit card rewards from your spending. If you're lucky, maybe they'll share!\nAnd, though there's just one con, it's a big one: **Credit cards are a serious financial responsibility.**\nIf you go on a spending spree, the primary cardholder is legally responsible for paying the bill. There's no get-out-of-jail-free card simply because you're a teen.\nIf your parent can't pay the bill, they could be hit with interest charges and late fees, and could incur serious damage to their credit scores. That's a big deal; it could make it more difficult for them to get a job or a house. END
 TITLE: Can I Get a Credit Card at 16? CONTENT: Understand How Credit Works Before Getting a Credit Card\n--------------------------------------------------------\nBefore begging your parents to add you as an authorized user on their card, take some time to learn the basics of credit cards and credit scores, and how the former can impact the latter.\nMake sure you understand why you should pay your statement balance in full (hint: you'll avoid interest!), never pay late (because it's really bad for your scores) and always keep a low credit utilization ratio.\nIf you want some training wheels, see if your parent has a Barclays credit card (like the Upromise® Mastercard®, which helps you save for college). Barclays is one of the only credit card issuers that offers its cardholders the ability to set per-transaction spending limits for authorized users. As long as you're 16, it will also report your behavior to the credit bureaus, helping you build your credit.\n(While American Express cards also allow spending limits, Amex doesn't report underage behavior to the credit bureaus—so having one of these cards won't help your credit.) END
 TITLE: Can I Get a Credit Card at 16? CONTENT: Should You Get an Underage Credit Card?\n---------------------------------------\nAs a 16-year-old, one of your best ways to build credit is becoming an authorized user on the card of a trusted adult. Until you turn 18, in fact, it's your only real option for obtaining or using credit.\nThat said, it's a big responsibility. Make sure you fully understand how credit cards work before becoming an authorized user, so you can avoid mistakes that will haunt you—and your parents—for years to come. END
 TITLE: How to Prequalify for a Credit Card CONTENT: How Prequalifying for a Credit Card Works\n-----------------------------------------\nCredit card issuers looking to grow their number of cardholders often go straight to potential customers by prescreening credit reports en masse and sending out offers of credit to those who meet the qualification criteria. Prescreening is done with the help of credit bureaus, which compile a list upon request based on specific factors credit card issuers are searching for. The credit card issuer then sends a _preapproval_ offer to the consumers on that list.\n_Prequalifying_ for a card typically works a little differently (though some issuers use the two terms interchangeably). If you are in the market for a new credit card, you can seek out a credit card issuer yourself to request prequalification. To do so, you'll go to the card issuer's website and offer some basic information, after which you'll be shown a list of offers you could be approved for. Not all issuers offer prequalification, however, so you may not find this option depending on which card you're seeking.\nIn either case, both preapproved and prequalified credit card offers come with several advantages:\n*   Preapproval results in a soft credit inquiry, which does not impact your credit score. Prequalification, offered online by American Express and other card issuers, shouldn't reduce your credit scores either. If you decide to apply for the card, a hard inquiry will be generated and potentially shave a few points off your credit score.\n*   If you're preapproved or prequalified for a card, and your creditworthiness hasn't drastically changed since the prescreening process, your approval odds are generally good.\n*   They make it easier to compare credit card options that you're most likely to qualify for.\nBut remember: A prequalified credit card offer is not a firm offer credit. It's an invitation to apply. You could still get denied for the card if you submit a formal application and don't meet the card issuer's minimum qualification criteria for other factors not reviewed during prescreening, including income, employment status or monthly housing payment. END
 TITLE: How to Prequalify for a Credit Card CONTENT: How Can I See if I Prequalify for a Credit Card?\n------------------------------------------------\nAre you interested in a particular credit card? Here are a few ways to determine if you prequalify:\n*   **Use the screening tool on the company's website.** Check your status by entering your name, address and the last four digits of your Social Security number. Many large banks also have prequalification tools on their website.\n*   **Keep an eye out for mail from credit card issuers.** Many credit card companies send preapproved offers via postal mail or email. They communicate that you are preapproved and invite you to apply using the unique code included in the letter.\n*   **Use Experian CreditMatch™ to see cards you may qualify for.** This free tool matches you with personalized credit card offers based on your credit profile. There is no impact to your score, and you can see your results in less than a minute. END
 TITLE: How to Prequalify for a Credit Card CONTENT: What Credit Score Do I Need to Prequalify for a Credit Card?\n------------------------------------------------------------\nThere is no minimum credit score requirement to prequalify for a credit card—approval odds depend on the specific card you want to apply for and your credit history.\nEven if you have bad credit, there may be credit cards out there within your reach. You should, however, expect a limited selection to choose from. Those with no credit history or a \"thin\" credit file may only qualify for secured credit cards, but there are credit card issuers that can consider alternative credit data when processing your application.\nYour credit history isn't the only factor that credit card issuers look for when evaluating your application. They usually input these other factors into their unique formula to determine if you qualify:\n*   **Income**: Lenders review your income to determine if you can afford to repay what you borrow. If you're between 18 and 21 years of age, you're required to submit proof of income or apply with a cosigner. This is mandated by the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009.\n*   **Other financial details**: Credit card issuers also examine additional financial information, like monthly housing expenses, during the application process.\nBefore checking if you prequalify, consider improving your credit score if it's not quite up to par. A few tips to help you get started:\n*   **Check your credit report.** Credit reports from all three credit bureaus—Experian, TransUnion and Equifax—are available for free from AnnualCreditReport.com. You can also check your credit report and score online for free with Experian. When looking over your report and scores, take a look at the factors affecting your scores the most and create a plan of action to address them.\n*   **Pay all your bills on time.** Payment history has a major impact on your credit score, so it's essential to make timely payments each month. If you have any past-due payments or charge-offs, get current on them sooner than later. Reach out to your lenders to see what accommodations are available if you worry you'll miss a payment.\n*   **Reduce or pay off credit card balances.** Your credit utilization plays an important role in your credit scores. Keeping it as low as possible will have the best impact on your scores.\n*   **Become an authorized user on someone else's credit card account.** This can help improve your credit score if the card is used responsibly and balances are kept low. You will not be responsible for the outstanding balance and can be removed as an authorized user at any time.\n*   **Have additional positive payment activity reported to the credit bureaus.** You can use Experian Boost™† to have eligible telecom, utility and streaming service payments added to your credit report for free. This positive payment history could help increase your scores.\n*   **Only apply for new credit accounts as needed.** Many credit applications in a short period can hurt your credit score.\n*   **Monitor your credit.** By keeping tabs on your credit, you can see changes to your report in real-time and address any issues or fraud promptly. You can monitor your credit for free with Experian. END
 TITLE: How to Prequalify for a Credit Card CONTENT: What Happens if I Get Denied for a Credit Card?\n-----------------------------------------------\nMost card issuers can make a decision in a minute or less. If your credit card application is denied, the lender will send you an adverse action letter that details how they reached their decision. The letter should also explain that you can get a free copy of your credit report and the steps to take to obtain it.\nYou can call the lender and ask that they reconsider your application if you still want the card. If you withheld information from the original that may help you get approved, such as additional income, be sure to share that with the representative.\nStill no luck? It may be best to focus on improving your credit before you apply for another credit card. Once your score has improved and you have a better handle on your credit obligations, you can use the screening tools on credit card sites to determine if you can prequalify. END
 TITLE: Why Is My Credit Card Being Declined? CONTENT: 1\\. You've Reached Your Credit Limit\n------------------------------------\nIf you've made several purchases on your credit card recently, you might have inadvertently maxed out your card. Some credit card companies give you a little leeway and will approve an over-the-limit charge so you're not declined in the store. However, they may charge a fee for the overage.\nThe risk of exceeding your credit limit is higher if you have a low credit card limit—say, a few hundred dollars. If that's the case, you may want to use the card for smaller purchases, such as your morning Starbucks fix or a streaming service subscription. That way, it'll be easier for you to pay off the balance each month and avoid hitting your credit limit.\nThere's another important reason to avoid maxing out your credit card: It'll help your credit scores. Credit utilization—how much of your available credit you're using—plays a significant role in your credit scores. Keeping your individual credit card balances, and your total credit card usage, under 30% of your available limit will keep your utilization low, which can help your credit. Once your balances push your utilization over 30%, your credit scores can suffer. END
 TITLE: Why Is My Credit Card Being Declined? CONTENT: 2\\. Your Purchase Was Flagged as Fraud\n--------------------------------------\nBecause credit card fraud is the most common type of identity theft, card issuers are constantly on the lookout for suspicious activity. While a legitimate purchase being flagged as potential fraud can be annoying in the moment, it can ultimately protect you. If identity theft goes undetected, someone could steal and sell your personal information and run up significant charges on your card.\nWhen your card is declined and you know you have plenty of available credit, call the phone number on the back of the card. A representative should be able to lift any freezes the issuer put in place.\nIf you're planning to travel abroad, call your card issuer ahead of time and let them know. They can add a note to your account so you're less likely to get declined while you're away. However, it's smart to carry backup cards or other forms of payment when you travel internationally.\nWhen possible, consider using a card with an EMV chip, a contactless card or a mobile wallet for payments. EMV chips tend to be more secure than magnetic swiping strips, though they can still be copied by fraudsters. Contactless and mobile payments lower the risk that the card data will be copied or that the card itself will be stolen.\nStill, it's helpful to review your transaction history every few days to check for unauthorized purchases. You also may be able to set up text alerts or smartphone notifications for every purchase, or purchases over a certain amount, charged to your card.\nIf you see purchases you didn't make or authorize, contact your credit card issuer right away. They can reverse the charge and send you a new card. Changing your passwords and PINs for online accounts can prevent further fraudulent activity. END
 TITLE: Why Is My Credit Card Being Declined? CONTENT: 3\\. You Have a Large Pending Transaction\n----------------------------------------\nCompanies such as rental car providers and hotels may put a hold on your card to ensure you have enough available credit to pay your final bill. While the hold is in place, your card issuer might decline other purchases until it's cleared. Merchants will tell you when they're placing a hold for things like incidentals or security deposits, so you can ask them how long it typically takes to release the hold.\nIf you have an idea of the hold window, you can use alternate payment methods during that time to avoid embarrassing or stressful situations. Or, if you need access to the credit line sooner, you can call the credit card issuer or the merchant to request that they lift the hold. There's no guarantee that they'll do it, but it's worth a try.\nYour best bet is to build transaction holds into your budget. If you know you'll be renting a car or checking into a hotel for a week, you can set aside some extra savings in your checking account or make sure another card has plenty of credit so you're not worried about getting declined. END
 TITLE: Why Is My Credit Card Being Declined? CONTENT: 4\\. You're Behind on Payments\n-----------------------------\nCredit card issuers can restrict your card use if you haven't made a payment recently. You may not realize that you've fallen behind until the card is declined, so the best thing to do is call the issuer and explain your situation. They can tell you exactly how much you need to pay to bring the account current and start using the card again.\nLate payments usually mean late fees, but your issuer may be willing to waive the fee to help you get on track. If you're going through a financial hardship, the issuer may offer you a modified payment plan that allows you to continue using the account while you catch up.\nOnce you're in a stable place, you may want to create a strategy for paying down your credit cards so your monthly payments are more manageable. There are a number of ways to pay off debt, including debt consolidation loans, transferring your balance to a lower-interest card or working with a credit counselor to negotiate more affordable terms. END
 TITLE: Why Is My Credit Card Being Declined? CONTENT: 5\\. Your Credit Card Is Expired\n-------------------------------\nYour credit card company will likely send you a new credit card before your current one expires. However, if you moved and forgot to update your address or accidentally continued using your old card, you may get declined.\nThe card may also have been lost in the mail or stolen, so if the expiration date passes and you haven't received a new card, contact your issuer. They can tell you when the card was sent and whether you should wait a little longer, or they can send out another one.\nTo help avoid being declined over an expired card, always update your contact information with your card issuer when you move. END
 TITLE: Why Is My Credit Card Being Declined? CONTENT: 6\\. Your Credit Account Was Closed Without Your Knowledge\n---------------------------------------------------------\nCard companies close accounts for a number of reasons. If your credit score has dropped significantly since you opened the account, they may choose to close it because you're now a high-risk borrower.\nCard issuers also close inactive accounts, so if you haven't used a particular card in a while and you're not carrying a balance, that could be the problem. If you were an authorized user on someone else's account and the primary cardholder removed you from it, you'll no longer be able to use the card.\nIn some cases, creditors close accounts by mistake. The only way to know for sure why an account was closed is to contact the issuer. Unfortunately, issuers are not legally required to tell you that they've shut down your account, which is why it's a good practice to log in and check the status of your accounts regularly. END
 TITLE: Why Is My Credit Card Being Declined? CONTENT: How to Help Prevent Your Card From Getting Declined\n---------------------------------------------------\nYou can take a few simple steps to help manage your credit card accounts and avoid getting declined when trying to make a purchase.\n*   **Sign up for account alerts.** Many card issuers offer online and mobile app account management, and taking advantage of those options can help you keep your account in good standing. By setting up fraud alerts and purchase alerts, and checking your balance and transactions at least once a week, you can help prevent identity theft and avoid using too much of your available credit.\n*   **Use autopay.** If your issuer has an autopay option, that may help you avoid late payments. You can schedule your monthly minimums to be withdrawn automatically so you don't have to remember to do it each time the bill comes, then make additional payments to pay down your balance when possible.\n*   **Pay off your balances each month.** Paying off your card each month will not only help avoid embarrassing encounters at the cash register but also help improve your credit scores.\n*   **Pay attention to notices from your issuer.** Keep an eye out for letters from your credit card company. They may give you a heads up that a new card is on the way or that your issuer is offering new security features to protect your account; implementing those could lower your chances of being a fraud victim.\n*   **Monitor your credit.** Experian's free credit monitoring service can help you keep track of your accounts and your overall credit. You'll receive real-time alerts about suspicious activity and changes to your credit report, along with notifications about balance decreases and credit utilization updates.\nThere are no guarantees against your card being turned down. Even if you manage your account perfectly, your issuer might make a mistake or block legitimate purchases in an attempt to prevent fraud. But by proactively monitoring your account and your credit, you can reduce your chances of being declined. END
 TITLE: Can Store Credit Cards Build Credit? CONTENT: What Is a Store Credit Card?\n----------------------------\nA store credit card works like a traditional credit card—you can use the card to make purchases you pay off at a later date, potentially with interest. You may be offered a store credit card by a cashier at a checkout counter and be instantly approved right then and there.\nWhen you use a store card with the retailer that provided it, you may receive discounts, increased credit card rewards, free shipping or other perks you wouldn't receive if using a different payment method.\nThere are two types of store credit cards:\n*   **Closed-loop retail cards**: These cards can typically only be used with the retailer. However, some can be used with other brands and partners of the retailer.\n*   **Open-loop retail cards**: These cards are co-branded by both the retailer and a major payment network, like American Express, Mastercard or Visa. You can use open-loop retail cards with the specific retailer or anywhere that accepts the payment network displayed on the front of your card.\nYou can expect to pay more in interest on a store credit card than a traditional credit card. However, it may be easier to be approved for a store credit card versus a traditional, unsecured credit card. Closed-loop credit cards tend to have lower requirements than open-loop cards and can help you build credit just the same.\nSome retailers only offer closed-loop cards, while others provide both types of store credit cards. Inquire before you apply to determine if you can choose between the two. You're likely to get more use out of an open-loop card, but closed-loop cards can also be appealing if the perks are generous and you frequent the merchant providing it. END
 TITLE: Can Store Credit Cards Build Credit? CONTENT: How Can Store Cards Help You Build Credit?\n------------------------------------------\nYour use of credit cards is listed on your credit reports and is factored into credit score calculations done by credit scoring companies. Store credit cards can help you build credit if you use them responsibly by making at least the minimum payment on time every month and keeping your balance low.\nBut for your use of the card to reflect positively in your credit report, it's critical to make sure the card issuer reports account activity to the three credit bureaus—Experian, TransUnion and Equifax. Why so? Some credit card issuers do not report payment history to credit bureaus, or may only report it to one or two. Your store credit card usage will only help you build credit if it's included in your credit reports.\nWhen building your credit, it's key to make sure the information in your credit reports reflects wise financial management. Payment history is the most critical factor in your credit score calculation, and consistent on-time payments may help improve your score. Credit utilization is another large part of the credit score calculation.\nYour credit utilization ratio compares the amount of credit you're using with your credit limits. To illustrate, if your credit limit on your store card is $1,000 and you owe $500, your credit utilization ratio is 50%. If you were to pay your balance down to $100, your utilization drops to 10%, which could help your credit.\nCredit utilization above 30% can drag down your scores, so keep your balances below that threshold if at all possible. As you think about this factor, make sure to consider all your cards together, as utilization is measured on a per-card and an overall basis.\nIf not used properly, store credit cards can hurt your credit. Late payments that remain outstanding for 30 days or more can be reported to the bureaus and potentially lead to a significant drop in your credit score. Making large purchases and letting the balance sit for several billing cycles increases your utilization ratio and can also damage your score.\nHere are a few tips for managing your credit with a store credit card:\n*   **Pay your bill on time.** Set up autopay to pay at least the minimum each month. This helps you avoid missing payments, incurring late fees, being charged more in interest (or a penalty APR) or having the account reported to the credit bureaus as delinquent.\n*   **Keep your credit utilization low.** Avoid overspending on your store credit card. If you make a large purchase, try to pay down the balance before your statement period ends. Although financial experts recommend that you keep it below 30%, a utilization ratio of 10% or lower will help you get the best credit score.\n*   **Look for help if you need it.** If you're not able to make your payments, or you're stuck with a debt you can't pay down, look for other options. You may explore help from a professional who provides credit counseling services. These services are typically provided free of charge by nonprofit organizations. Alternatively, a debt consolidation loan can shift your credit card payments to a lower-interest loan you pay off in equal payments over time. END
 TITLE: Can Store Credit Cards Build Credit? CONTENT: Is it a Good Idea to Get a Store Credit Card?\n---------------------------------------------\nNot sure if a store credit card is worth it? A store clerk may have a flashy sales pitch for you, but it's important not to make any hasty decisions when it comes to your credit. Many offer enticing perks to attract customers, but it's also essential to understand the drawbacks before you apply.\nSome key benefits of store credit cards to consider:\n*   **Qualification criteria**: It might be easier to get approved for a store credit card, especially if you have bad or limited credit.\n*   **Cardholder benefits**: Some store credit cards offer exclusive benefits to cardholders, like promotional financing offers and access to select products.\n*   **Customer rewards**: This perk allows you to earn points, cash back or loyalty rewards that can be used toward future purchases.\nYou may want to steer clear of store credit cards if there are traditional cards with better incentives that you can qualify for. Here's why:\n*   **Higher interest rates**: Store cards generally have a steeper interest rate than traditional credit cards. This can be an issue if you don't pay the balance in full each month. Also, be mindful of deferred-interest promotions—a 0% APR offer can be a great deal if you pay off the balance before the promotional period expires. Otherwise, interest may be retroactively applied when the offer ends, even if you've paid off a bulk of the balance.\n*   **Minimal rewards**: The rewards offered by some retailers may be far lower than what you can get with a traditional rewards credit card.\n*   **Lower credit limits**: Expect a lower credit limit with a store credit card. This can mean bad news for your credit utilization ratio and credit score if you carry a balance each month.\n*   **Limited use**: Closed-loop store credit cards can only be used with the retailer, so you will need to apply for another card to make other purchases. In this case, you may be better off applying for an open-loop credit card or avoiding cards from the retailer altogether.\nDeciding if a store credit card is right for you is a personal decision. It depends on how you intend to use the card, if the cardholder benefits are worthwhile and whether you think you can afford to make payments.\nA store credit card could be a good option if you frequently shop with the retailer and plan to take full advantage of the card's incentives. It may also help build credit if you use the card responsibly.\nHowever, you may be better off skipping the store credit card if you qualify for a traditional credit card with a lower interest rate and better perks if you can qualify. You should also avoid store cards if you already carry high debt balances or could struggle to keep your spending under control and possibly carry a balance. END
 TITLE: Can Store Credit Cards Build Credit? CONTENT: Other Ways to Build Credit\n--------------------------\nBeyond responsibly managing a store credit card, here are some other ways to build credit:\n*   **Get a secured credit card.** Secured credit cards are easier to qualify for, but issuers require a security deposit to activate the account. The money is usually held in a savings account and serves as collateral in case you fall behind on payments. If you're having trouble getting an unsecured credit card because of a limited credit history or low scores, a secured credit card may be a good option. Before applying, confirm that the card issuer reports account activity to the credit bureaus. After six months or more with the card, you may have improved your credit enough that you're able to get an unsecured credit card. Some card issuers may even convert a secured card to a traditional credit card after you demonstrate you can responsibly manage the account.\n*   **Get a credit-builder loan.** You can also apply for a credit-builder loan from a bank or credit union to build credit. With a credit-builder loan, the lender puts the loan balance into an account and has you make monthly payments on it over time. When you pay off the loan, you'll get what you paid toward it. It's a way to build credit while saving money, and you may even make a little bit in interest. Check with the lender before applying to confirm payment activity is reported to the credit bureaus.\n*   **Ask for a credit limit increase.** Already have a credit card you manage well? Reach out to the card issuer and request a credit limit increase. An increased limit can help you keep your credit utilization lower, which could help your credit scores.\n*   **Become an authorized user on someone else's credit card.** Ask a parent, relative or friend with good credit history to add you as an authorized user on their credit card. The positive payment history will be added to your credit report and could improve your score. You can request to be removed from the account at any time, and you won't be held responsible for the balance.\n*   **Add your utility, cellphone and other on-time payments to your credit reports.** Experian Boost™† , a free service from Experian, can add this positive payment history to your credit report, which can instantly help your score. END
 TITLE: Can Store Credit Cards Build Credit? CONTENT: Credit Cards to Consider for Building Credit\n--------------------------------------------\nHaving trouble getting approved for a credit card because you have limited or poor credit? Consider these options to help you build credit:\n*   **Secured Mastercard® from Capital One**: You won't pay an annual fee with this card that's accepted by millions of retailers worldwide. It has a standard APR of 26.99% (Variable) and reports to the three major credit bureaus. Although there isn't an enticing rewards program, this card may be a good fit if you don't have a lot of cash to put toward the opening deposit. You could be allowed to put down a refundable security deposit starting at $49 to get a $200 initial credit line. Accounts are evaluated for credit limit increases in as little as six months, and an additional deposit isn't required if you qualify.\n*   **The OpenSky® Secured Visa® Credit Card**: With this card, you'll get a competitive variable APR of 17.39% Variable. An annual fee of $35 is assessed to cardholders, but what separates this card from other secured products is the ability to get approved without undergoing a credit check. A refundable deposit of at least $200 is required to open an account.\nExperian CreditMatch™ can match you with secured and traditional credit cards to build credit. END
 TITLE: Can Store Credit Cards Build Credit? CONTENT: **Secured Mastercard® from Capital One**: You won't pay an annual fee with this card that's accepted by millions of retailers worldwide. It has a standard APR of 26.99% (Variable) and reports to the three major credit bureaus. Although there isn't an enticing rewards program, this card may be a good fit if you don't have a lot of cash to put toward the opening deposit. You could be allowed to put down a refundable security deposit starting at $49 to get a $200 initial credit line. Accounts are evaluated for credit limit increases in as little as six months, and an additional deposit isn't required if you qualify. END
 TITLE: Can Store Credit Cards Build Credit? CONTENT: **The OpenSky® Secured Visa® Credit Card**: With this card, you'll get a competitive variable APR of 17.39% Variable. An annual fee of $35 is assessed to cardholders, but what separates this card from other secured products is the ability to get approved without undergoing a credit check. A refundable deposit of at least $200 is required to open an account. END
 TITLE: What Are the Benefits of a Preapproved Credit Card? CONTENT: How Do Preapproved Credit Card Offers Work?\n-------------------------------------------\nA credit card company may send you an offer by mail, email or phone noting that you've been \"preapproved\" for a credit card. This means they've pre-vetted you using what's called a soft inquiry or soft pull to check your credit. A soft inquiry won't affect your credit, but it allows lenders to see your credit score and credit history to determine whether you might qualify for a card they're offering. Receiving a preapproval letter means you've passed the first screening step.\nPreapproved credit card offers are just that—offers. They are not a guarantee that you'll be given a card, and you'll still have to complete an application to obtain full approval. If you do complete the application, the issuer must offer you the benefits and terms you received in your preapproval notice.\nKeep in mind, however, that terms such as annual percentage rate (APR) are often noted as ranges in a preapproval and are set only after you actually apply. So if the issuer offers an interest rate range of, say, 14.99% to 24.99% in your preapproval letter, your rate could end up at either end of that range depending on where your credit stands.\nYou may receive some offers that say \"prequalified\" and some that are marked \"preapproved.\" When it comes to credit cards, the terms prequalified and preapproved are often used interchangeably (unlike mortgages, which do a more stringent review for preapprovals). In either case, it means the company has done a basic review of your credit and thinks you might be a good customer. But does that mean you should apply for the card? That will depend on several factors, including whether you think the benefits are worth it. END
 TITLE: What Are the Benefits of a Preapproved Credit Card? CONTENT: There are a number of upsides to preapproved credit card offers, including:\n*   **Less work for you**: Rather than you searching out potential cards, lenders are coming to you. If you have a good credit score and history, you may attract offers for great cards with rewards, bonuses and other benefits.\n*   **No hit to your credit score**: If a company screens you for a preapproval offer, the soft credit check won't bring down your score, so you get to see card options at no risk.\n*   **Opportunity to rebuild credit**: Sometimes card companies will reach out even if your credit is fair or poor, offering a limited credit line that will help you rebuild your credit profile. It's important to check the interest rate, however, to make sure you won't be paying high fees on your purchases (though you can avoid paying interest by paying off your balance each month, which will also help you build credit).\n*   **Potential for competitive terms**: Because lenders are advertising the card to you, it's possible that you might qualify for better interest rates than you'd find without an invitation or preapproval code.\n*   **Opportunities to consolidate debt**: Some credit card preapprovals may include promotions such as a 0% introductory APR for a certain period of time. You may be able to pay off high-interest accounts you already have open with the new card, allowing you to save on interest while paying off the balance.\n*   **Potential intro bonus, rewards and other perks**: If you've been looking into travel rewards cards or cards that offer intro bonuses and other perks, a preapproval is a good way to find out you may qualify for one of these cards.\nIt's important to read any offer thoroughly, however. A card may offer enticing cash back bonuses or travel rewards, but if there is a steep annual fee, it could offset any benefits. END
 TITLE: What Are the Benefits of a Preapproved Credit Card? CONTENT: Do Preapproved Offers Affect Your Credit Score?\n-----------------------------------------------\nAs mentioned, lenders do a soft inquiry before they make a preapproval offer, but that inquiry does not affect your credit score. If you take the next step and apply for the preapproved credit card, however, the lender will run a hard inquiry that could temporarily ding your score by a few points. That's why it's important to understand the terms before you complete the process, including whether there is an annual fee and (if there is one) how much it is, the interest rate range and the types of rewards included with the card.\nYou may also want to find out how user-friendly the card issuer's website or app is, and if you can set up automatic payments to avoid late fees and interest charges. Spending some time reading reviews of the lender and the card can also help you decide whether you want to complete a full application and have the new account on your credit report.\nFinally, when considering any credit product, including a preapproved credit card, it's a good idea to know your credit score and review your credit report to ensure it's accurate. You can get a free credit score and report from Experian, or opt for free credit monitoring, which provides a free score and report, and alerts you when there are changes to your credit file. END
 TITLE: What Are the Benefits of a Preapproved Credit Card? CONTENT: How to Opt Out of Preapproved Credit Card Offers\n------------------------------------------------\nReceiving preapproved credit card offers can be a low-effort way to compare credit cards, since the lenders are coming to you rather than the other way around. But not everyone wants to receive unsolicited offers, and if you'd prefer not to, you can opt out.\nYou can either request that you be removed from preapproval lists at OptOutPrescreen.com, or you can call 888-5-OPTOUT (888-567-8688). These options will remove you from lenders' lists for five years.\nTo request a permanent opt-out, you can go to OptOutPrescreen.com, print the permanent form and mail it to the address noted on the site.\nIf you want to compare different credit cards in one place, you can sign up for Experian CreditMatch™, which provides free personalized card recommendations with no negative impact to your credit. END
 TITLE: Why You Should Apply for a Credit Card Based on Your Credit Score CONTENT: Why Knowing Your Credit Score Is Important\n------------------------------------------\nWhen you submit a credit card application, the lender reviews your credit report and score to decide if you're eligible to qualify. In some cases, you may be approved online instantly, while other times the credit card issuer will take some time to review your application and credit report.\nWhether you're approved or not, this process generates a hard inquiry on your credit report, which can temporarily ding your credit score. While a single application won't do much damage to your credit score, it's best to avoid applying for a new account unless you're somewhat likely to get approved. And if you apply for multiple credit cards all around the same time, those hard inquiries can drag down your score unnecessarily.\nChecking your credit score provides insight into where your credit currently stands and what lenders see when they pull your file. When you check your credit score, which you can do for free with Experian, you'll see what's helping and hurting your credit. For example, you may not realize how often you make late payments, or you might not be aware how a large balance you're carrying on a certain account is penalizing your score. If you don't need a new credit card urgently, it may be prudent to spend a few months working to improve your credit before you apply for one.\nWhy would you want a good credit score before applying for a new card? The higher your credit score, the more likely you are to get approved. Not only that, but your score also dictates some of your card's terms, so having a higher score can mean more favorable terms such as lower interest rates or higher credit limits. Additionally, solid credit is required for the more premium credit cards, such as those with rich rewards programs or coveted offers such as 0% APR introductory periods. END
 TITLE: Why You Should Apply for a Credit Card Based on Your Credit Score CONTENT: There are many types of credit cards out there, and choosing the right one for you comes down to factors such as what you want from a card, how you plan to use it, and your credit score.\nFor example, if you just need a card for occasional large purchases, your priority may be a low-interest card. If you need some relief from high-interest debt, you could consolidate it at a lower interest rate with a balance transfer credit card that offers a 0% intro period on transfers. If your goal is to earn rewards from everyday spending, you may prefer a cash back or travel rewards credit card.\nThese are all types of unsecured credit cards, meaning no deposit or collateral is required to open an account. If you're new to establishing credit or have had troubles that harmed your credit scores, you may need to start with a secured credit card first. These cards require a deposit as collateral, which is typically then used as your line of credit. It's geared toward those who need help building or improving their credit. After showing months of responsible card use, you may be able to qualify for an unsecured credit card with better terms, benefits and spending limits, if the issuer offers that option.\nYour FICO® Score☉ , the most common score used by lenders, is graded on a scale of 300 to 850—and the higher your score, the better the terms you're likely to receive. Here is how these credit scoring ranges are categorized by FICO:\n*   300 - 579: Very poor\n*   580 - 669: Fair\n*   670 - 739: Good\n*   740 - 799: Very good\n*   800 - 850: Exceptional\nWhen you research credit cards you're considering, you may see preferred credit score ranges for those cards. This can help you ensure you're applying for a card within your range.\nFor example, the Credit One Bank® Platinum Visa® for Rebuilding Credit is targeted to consumers with credit scores ranging from poor to good. Depending on what you're looking for in a card, if your credit falls into this range, this could be a good option for you.\nOn the other hand, the Chase Sapphire Reserve® is a prestigious rewards card with major perks, but it's best suited to consumers with exceptional credit. There are also numerous cards available to those with good credit and above.\nWhat to Do if You Get Denied for a Credit Card\n----------------------------------------------\nWhen you don't qualify for a credit card, the issuer is required to provide an adverse action letter informing you why it denied your application. You're also entitled to receive a free copy of your credit report to help you understand the reason for the denial.\nIf you're denied a credit card you really wanted, you can call the issuer and ask that they reconsider. However, you may need to provide additional information that wasn't in your original application, such as additional sources of income or savings.\nThe issuer may turn you down, at which point you need to decide whether to apply for a different card or pause to work on improving your credit score. If you take some time to build your credit, you're more likely to get approved for new accounts in the future or cards with better benefits and terms. Paying all your bills on time and paying down credit card balances are the best places to start, as together they make up 65% of your FICO® Score.  \nAn Easy Way to Give Your Score a Boost\n--------------------------------------\nImproving your credit score can take time, but there is one way to expedite the process. With Experian Boost™† , you can get credit for on-time utility, cellphone and video streaming service payments, possibly seeing an immediate increase in your score. If you try Experian Boost before you apply for a credit card, you may find it easier to get approved or land more favorable terms. END
 TITLE: Why You Should Apply for a Credit Card Based on Your Credit Score CONTENT: On the other hand, the Chase Sapphire Reserve® is a prestigious rewards card with major perks, but it's best suited to consumers with exceptional credit. There are also numerous cards available to those with good credit and above. END
 TITLE: Why You Should Apply for a Credit Card Based on Your Credit Score CONTENT: What to Do if You Get Denied for a Credit Card\n----------------------------------------------\nWhen you don't qualify for a credit card, the issuer is required to provide an adverse action letter informing you why it denied your application. You're also entitled to receive a free copy of your credit report to help you understand the reason for the denial.\nIf you're denied a credit card you really wanted, you can call the issuer and ask that they reconsider. However, you may need to provide additional information that wasn't in your original application, such as additional sources of income or savings.\nThe issuer may turn you down, at which point you need to decide whether to apply for a different card or pause to work on improving your credit score. If you take some time to build your credit, you're more likely to get approved for new accounts in the future or cards with better benefits and terms. Paying all your bills on time and paying down credit card balances are the best places to start, as together they make up 65% of your FICO® Score. END
 TITLE: Why You Should Apply for a Credit Card Based on Your Credit Score CONTENT: An Easy Way to Give Your Score a Boost\n--------------------------------------\nImproving your credit score can take time, but there is one way to expedite the process. With Experian Boost™† , you can get credit for on-time utility, cellphone and video streaming service payments, possibly seeing an immediate increase in your score. If you try Experian Boost before you apply for a credit card, you may find it easier to get approved or land more favorable terms. END
 TITLE: How Do Credit Card Refunds Work? CONTENT: What Is a Credit Card Refund?\n-----------------------------\nTo understand how credit card refunds work, it's important to know how credit card purchases work. There are two types of companies involved in every credit card transaction: credit card issuers and credit card networks.\n*   **Credit card issuers**: The financial institutions that provide credit cards and lend cardholders the money they need to make purchases with the cards.\n*   **Credit card networks**: Companies that process these transactions, electronically moving the money from the credit card issuer to the merchant and vice versa.\nWhen you buy something with a credit card, the merchant requests payment from the credit card issuer, not from you directly. The card issuer pays the merchant and adds the purchase amount to your account balance. You then pay the credit card issuer.\nReturning a purchase works the same way, but in reverse. When a retailer issues a refund, the money doesn't go directly to you. (This is why most merchants won't give you a cash refund for a purchase made with a credit card.) Instead, they ask your credit card issuer to credit your account for the returned amount. The card issuer then posts the credit to your account. END
 TITLE: How Do Credit Card Refunds Work? CONTENT: How Long Does a Credit Card Refund Take?\n----------------------------------------\nThe time it takes to process a credit card refund depends on a number of factors. In general, though, you shouldn't expect to get your money back right away.\nThe retailer's return policy also affects how long you'll wait for your credit card refund. Many retailers promise refund times of three to five business days, while others take longer. The best way to get an idea of how long you'll wait is to check the retailer's website.\nOnline returns mailed back to a retailer generally take the longest to process. Depending on the shipping method and distance, it can take a week or more for the package to arrive and be processed before the refund process is set in motion. If you're in a rush to get a refund for an online purchase, paying for expedited shipping to speed its progress might be worth the cost. Some online retailers insist you get authorization from them before sending back a return, so be sure to check the merchant's policy before you put your package in the mail—otherwise, your refund could take even longer.\nItching to speed up the refund process? Returning your item in person will get you your refund faster, because the retailer will issue your refund immediately (although you'll still have to wait for the credit to appear on your credit card statement).\nDepending on your credit card's billing cycle, it can take even longer for a refund to appear on your monthly statement. For example, suppose your credit card's closing date is the 15th of the month, and you return an item on the 16th for a refund. Because the return occurred after the closing date, the refund won't appear on that month's statement. Your statement balance often differs from your current balance, so if you're eager to see whether a credit has been issued, check your account online or use the card issuer's mobile app to keep tabs on it.\nWhat if you don't want to wait for your credit card company to issue a refund? You can ask for your refund in the form of store credit, which can be issued immediately. Just be aware that store credit won't erase the purchase amount from your credit card. You'll still owe the credit card issuer the money for the item, even though you returned it. END
 TITLE: How Do Credit Card Refunds Work? CONTENT: How Does a Refund Affect Your Credit?\n-------------------------------------\nMoney refunded to your credit card account is considered an account credit; it doesn't count as a payment or partial payment. If you incorrectly assume getting an account credit eliminates the need to make a monthly payment, you could end up paying late fees or even damage your credit score. Be sure to keep making payments on your balance while you're waiting for the statement credit to post.\nIf you make a credit card purchase, don't pay the balance off when your statement arrives, and later return the item, you'll be responsible for any interest that accrues on the purchase amount before your refund posts. If you buy an expensive item and carry a balance, this interest can be costly. Unfortunately, your refund won't reimburse you for any interest you may have paid before returning the purchase.\nIn certain situations, credit card returns can affect your credit score. An account credit can boost your credit score if it reduces your credit utilization ratio, which compares the total amount of revolving credit you're using to the total amount you have available. Credit scoring models consider your credit utilization ratio when calculating your credit score; reducing this ratio to 30% or less can help you avoid hurting your score.\nHowever, a credit card refund that takes a long time to show up on your account could hurt your credit score if the purchase amount pushes your credit utilization ratio above 30%. Suppose you have a credit card with a $6,000 limit and you use it to make a $3,000 purchase that you later return. Until the $3,000 credit posts to your account, you'll be using 50% of your available credit on that card.\nAre you within a few points of earning a big reward on your credit card, such as a cash back bonus? Be aware that any credit card rewards points, cash back or other perks you earned on the returned purchases will disappear when the return is processed. There's one way around this if you really want to keep your hard-earned points: Ask for a store credit instead of a credit card refund. The credit card company won't be involved in the return transaction, so your earned points will be safe. END
 TITLE: How Do Credit Card Refunds Work? CONTENT: What Happens if I Have a Negative Balance After a Refund?\n---------------------------------------------------------\nIt's possible to have a negative balance on your credit card after you've received a refund—but despite the terminology, there's nothing negative about this. Having a negative balance just means you don't owe the card issuer any money, and that's always a good thing. Next time you make a purchase using the card, the negative balance will be applied to your purchase.\nIn itself, having a negative account balance will not affect your credit score. Because it doesn't affect your payment history, a negative balance is not reported to the major credit bureaus and doesn't show up on your credit report. However, a negative account balance might affect your credit score in a positive way if it helps reduce your credit utilization ratio.\nWhat if you have a really big negative balance? For example, suppose you normally spend $50 a month on a credit card, but one day you use it to buy a $2,000 sofa that you decide to return. Using up the $2,000 credit from the return could take a long time if you don't normally spend much on that card. If you'd rather have the cash in hand, you can ask the credit card company to issue a refund via check, direct deposit or money order. Under federal law, the credit card issuer is required to honor this request; however, some companies will ask you to make the request in writing. END
 TITLE: What Happens If You Only Pay the Minimum on Your Credit Card? CONTENT: How Do Credit Card Minimum Payments Work?\n-----------------------------------------\nA minimum payment is the smallest amount your credit card issuer will accept toward your credit card balance each month. You must pay at least this amount for your payment to be considered \"on time,\" and to avoid late fees and other penalties. Some creditors may even increase your interest rate if you make a late payment.\nThe amount of your minimum payment is typically calculated as a percentage of the outstanding balance or a set dollar amount (like $25). It usually comes out to between 1% and 3% of the outstanding balance on your credit card, and includes accrued interest and applicable fees. Generally, if your total balance is less than the minimum due, your balance must be paid in full.\nIt's important to understand your credit card issuer's minimum payment policies, as they vary from company to company. Here's how minimum payments generally work for some of the more popular cards from the biggest credit card companies:\n*   **Bank of America® Customized Cash Rewards credit card**: $35, or 1% of your balance plus new interest and late fees (if applicable), whichever is greater.\n*   **Capital One Platinum Credit Card**: $25, or 1% of your balance plus new interest and late fees (if applicable), whichever is greater.\n*   **Chase Freedom Unlimited®**: $35, or 1% of the balance plus interest and late fees (if applicable), whichever is greater.\n*   **Citi® Double Cash Card - 18 month BT offer**: $35, or 1% of the new balance plus interest and late fees, or 1.5% of the new balance, whichever is greater. Plus any past-due balance, overlimit balance or Citi Flex Plan payments.\n*   **First Progress Platinum Elite Mastercard® Secured Credit Card**: $40 or 5% of the balance plus interest, past-due amounts and any balance that exceeds your credit limit, whichever is greater.\n*   **Wells Fargo Platinum Visa®**: $25, or 1% of the statement balance, the annual fee (if applicable) and interest plus any past-due amount, whichever is greater.\n*   **American Express**: Minimum payments can vary widely based on whether your card is a traditional credit card (such as the American Express Cash Magnet® Card) or not (the American Express® Gold Card, for example). Some American Express cards will require more to be paid toward a balance every month, allowing you to carry a balance for certain charges, but not all, with the option to pay off purchases over time in monthly installments.\nPlease note that these minimum payment policies are current as of September 2020. Read over your cardholder agreement to see complete minimum payment details for your credit card.\nOnly Making Minimum Payments Means You Pay More in Interest\n-----------------------------------------------------------\nYou may have more money in your pocket each month if you only make the minimum payment, but you'll end up paying far than your original balance by the time you pay it off. Plus, only paying the minimum means you'll be in debt for much longer. Why? Only a small percentage of a minimum payment is applied to the card's principal balance—the remainder takes care of the accrued interest and fees. So, if your credit card has a 21% interest rate and $4,000 balance, paying the minimum of 1% plus interest each month will keep you in debt for 257 months. Plus, you will spend $6,374.64 in interest, bringing the total cost you'll pay to more than $10,000.\nIf you have a card that offers a promotional 0% APR period on purchases, you don't necessarily have to pay more than the minimum right away to avoid racking up interest charges. These cards allow you to make purchases without accruing interest for a set period if you make the minimum monthly payments on time. If at all possible, have the balance paid in full before the promotional interest-free period ends or else the credit card issuer will begin to charge interest on any balance that remains.\nHow Only Making Minimum Payments Can Affect Your Credit\n-------------------------------------------------------\nCredit scoring models consider your credit utilization ratio, or the percentage of available credit you're using, when calculating your score. Ideally, you want your utilization to be at or below 30% to avoid hurting your credit score, but the lower, the better.\nTo illustrate, if your credit limit on all your cards is $10,000 and you carry a balance of $6,000, your utilization ratio is 60%. If you only make the minimum payment, you'll maintain this high balance for much longer even if you stop using the card to make purchases. So, to minimize harm to your credit scores, try to increase your monthly payment in order to get your credit utilization ratio to 30% or lower.\nWhat to Do if You Can't Pay Off Your Balance in Full Every Month\n----------------------------------------------------------------\nIt's important to at least pay the minimum each month to avoid late fees, penalty APRs and to preserve your credit rating. If possible, you want to pay the balance in full every month to keep your utilization low and save a bundle on interest and possibly help lift your credit score. But what if you're strapped for cash and can't pay the entire balance in full?\nPay as much as you can comfortably afford to get the balance down. This allows you to get out of debt faster and free up funds to meet other financial goals. Struggling to come up with money to pay more than the minimum on your credit cards each month? Creating a budget can help you get a handle on your spending. Cut or reduce your expenses and put the extra cash towards your credit cards. You might also try finding other ways to earn extra income, like getting a part-time job or exploring freelance opportunities.\nChoosing a credit card repayment strategy will also help you prioritize which credit cards to aggressively pay down first. For example, the avalanche method of paying down your cards has you focus on the accounts with the highest interest rates. You can also follow the snowball method, which calls for you to target the card with the lowest balance first.\nIf funds are tight and you are having trouble keeping up with the minimum payments, call your credit card issuer to discuss your situation. They may offer you a payment arrangement if you're going through a rough financial patch. Some also have hardship programs that are available to financially distressed card holders.\nCredit counseling is another option for those having trouble making payments. This service is usually provided for free by nonprofit organizations that teach consumers sound money management habits. They can also help you create a debt management plan to pay down your balances. Under this arrangement, you will make one payment to the credit counseling agency each month and they will distribute funds to the creditors after negotiating more favorable account terms on your behalf, like lower interest rates, waived fees or payment extensions.\nThe Bottom Line\n---------------\nIf you can do so, paying more than the minimum payment on your credit card can save you a lot in interest and help protect your credit rating. Better yet, paying your balance in full will help you avoid paying any interest at all and keep your utilization ratio low.\nWorried that your credit score may be impacted because you can't keep up with the minimum payments? Reach out to the credit card issuer promptly to inquire about relief options that may be available to you. Also, keep tabs on your credit score and overall credit health with free credit monitoring from Experian.\n_All information about the Bank of America® Customized Cash Rewards credit card and the American Express Cash Magnet® Card has been collected independently by Experian and has not been reviewed or provided by the issuer of the card. The American Express Cash Magnet® Card is no longer available through Experian._ END
 TITLE: What Happens If You Only Pay the Minimum on Your Credit Card? CONTENT: **Citi® Double Cash Card - 18 month BT offer**: $35, or 1% of the new balance plus interest and late fees, or 1.5% of the new balance, whichever is greater. Plus any past-due balance, overlimit balance or Citi Flex Plan payments. END
 TITLE: What Happens If You Only Pay the Minimum on Your Credit Card? CONTENT: Only Making Minimum Payments Means You Pay More in Interest\n-----------------------------------------------------------\nYou may have more money in your pocket each month if you only make the minimum payment, but you'll end up paying far than your original balance by the time you pay it off. Plus, only paying the minimum means you'll be in debt for much longer. Why? Only a small percentage of a minimum payment is applied to the card's principal balance—the remainder takes care of the accrued interest and fees. So, if your credit card has a 21% interest rate and $4,000 balance, paying the minimum of 1% plus interest each month will keep you in debt for 257 months. Plus, you will spend $6,374.64 in interest, bringing the total cost you'll pay to more than $10,000.\nIf you have a card that offers a promotional 0% APR period on purchases, you don't necessarily have to pay more than the minimum right away to avoid racking up interest charges. These cards allow you to make purchases without accruing interest for a set period if you make the minimum monthly payments on time. If at all possible, have the balance paid in full before the promotional interest-free period ends or else the credit card issuer will begin to charge interest on any balance that remains. END
 TITLE: What Happens If You Only Pay the Minimum on Your Credit Card? CONTENT: How Only Making Minimum Payments Can Affect Your Credit\n-------------------------------------------------------\nCredit scoring models consider your credit utilization ratio, or the percentage of available credit you're using, when calculating your score. Ideally, you want your utilization to be at or below 30% to avoid hurting your credit score, but the lower, the better.\nTo illustrate, if your credit limit on all your cards is $10,000 and you carry a balance of $6,000, your utilization ratio is 60%. If you only make the minimum payment, you'll maintain this high balance for much longer even if you stop using the card to make purchases. So, to minimize harm to your credit scores, try to increase your monthly payment in order to get your credit utilization ratio to 30% or lower. END
 TITLE: What Happens If You Only Pay the Minimum on Your Credit Card? CONTENT: What to Do if You Can't Pay Off Your Balance in Full Every Month\n----------------------------------------------------------------\nIt's important to at least pay the minimum each month to avoid late fees, penalty APRs and to preserve your credit rating. If possible, you want to pay the balance in full every month to keep your utilization low and save a bundle on interest and possibly help lift your credit score. But what if you're strapped for cash and can't pay the entire balance in full?\nPay as much as you can comfortably afford to get the balance down. This allows you to get out of debt faster and free up funds to meet other financial goals. Struggling to come up with money to pay more than the minimum on your credit cards each month? Creating a budget can help you get a handle on your spending. Cut or reduce your expenses and put the extra cash towards your credit cards. You might also try finding other ways to earn extra income, like getting a part-time job or exploring freelance opportunities.\nChoosing a credit card repayment strategy will also help you prioritize which credit cards to aggressively pay down first. For example, the avalanche method of paying down your cards has you focus on the accounts with the highest interest rates. You can also follow the snowball method, which calls for you to target the card with the lowest balance first.\nIf funds are tight and you are having trouble keeping up with the minimum payments, call your credit card issuer to discuss your situation. They may offer you a payment arrangement if you're going through a rough financial patch. Some also have hardship programs that are available to financially distressed card holders.\nCredit counseling is another option for those having trouble making payments. This service is usually provided for free by nonprofit organizations that teach consumers sound money management habits. They can also help you create a debt management plan to pay down your balances. Under this arrangement, you will make one payment to the credit counseling agency each month and they will distribute funds to the creditors after negotiating more favorable account terms on your behalf, like lower interest rates, waived fees or payment extensions. END
 TITLE: How to Change a Name on a Credit Card CONTENT: Reasons to Change Your Name on a Credit Card\n--------------------------------------------\nThe most common reasons to change your name on a credit card are if you've gone through a marriage or divorce. Some people may also want to change their name on a credit card if they are undergoing a gender transition and legally changing their name in the process. A name change is a very personal decision and can happen for a variety of reasons, but regardless of why, it's key to make sure financial accounts are updated with the new name. END
 TITLE: How to Change a Name on a Credit Card CONTENT: Steps for Changing Your Name on a Credit Card\n---------------------------------------------\nIf you need to change your name on a credit card account, follow these steps:\n1.  Update your government-issued IDs. Before you approach your credit card issuer about a name change, first make sure to update your name on your Social Security card and other government-issued ID cards, such as your driver's license and passport. Your credit card company will likely want to see these new forms of legal identification in order to change the name on your account.\n2.  Contact your credit card issuer. Find out what its policy is regarding changing the name on an account. Ask about what documents and forms are required and how they want you to submit them.\n3.  Gather required documents. Now it's time to collect any documents and information requested by your issuer. Some may just want to see your new Social Security card or driver's license and will consider that enough proof. Others are more rigorous and may want to see legal documents, such as a marriage license, a divorce decree with the name change order in it, or in the case of a transitioning person, a court order for a legal name change.\n4.  Submit your documentation. Some credit card companies may accept digital scans of documents, while others may want paper forms and documents sent via U.S. mail. Once you've sent in the documents following their instructions, follow up if your name change hasn't taken effect after the expected amount of time has passed. END
 TITLE: How to Change a Name on a Credit Card CONTENT: Does Changing Your Name Affect Credit?\n--------------------------------------\nLegally changing your name won't affect your credit report at all. Additionally, neither does marriage. If you're getting married, your financial accounts aren't added to your spouse's credit report and theirs aren't added to yours. Your existing individual accounts stay on each of your respective credit reports, and you each maintain your own credit report. They don't merge into one.\nThe only way a marriage will impact your credit score is if you open a new joint account with your spouse. If you take out a mortgage or car loan together, or open a joint credit card account together, it will appear on both of your accounts and will impact both of your scores. But simply getting married and changing your last name will not result in any changes to your credit score, good or bad.\nYou also don't have to do anything to change your name on your credit report. Once you have updated your name with the Social Security Administration and with your creditors, the credit bureaus will receive this new information and update your report automatically. It can take a few months for it to take effect, since reporting schedules vary, but it will eventually happen without any effort required on your part. Your old name will still show up on your report as a former name, but your new name should update automatically. END
 TITLE: How to Change a Name on a Credit Card CONTENT: Keep an Eye on Your Credit\n--------------------------\nIf you want to check to make sure your name is successfully updated on your report, consider taking a look after a few months, which you can do for free with Experian. If your name hasn't updated, you may want to contact your creditors to make sure they have processed your name change.\nRegardless of a name change, it's always smart to periodically monitor your credit report to ensure there are no signs of fraud and no errors that could be dragging down your score. Keeping tabs on your credit can also help you see how your financial decisions impact your credit score. END
 TITLE: How to Request a Credit Card Chargeback CONTENT: What Is a Chargeback?\n---------------------\nThe term chargeback refers to the process of a credit card company reversing a transaction if it resulted in an incorrect charge. You can request a chargeback if you've been overcharged, were charged for a purchase you didn't make at all, or if the merchant didn't live up to their end of the bargain (undelivered goods, for instance).\nWhen you file a request, the creditor has up to 90 days to investigate. During that time you don't have to pay for the charge you're disputing, but you'll still need to pay the rest of your bill as usual.\nThere's no guarantee that you'll get the result you want from a chargeback request, but if you include documents, like a copy of your receipt from the transaction, you'll increase your chance of success.\nThe Fair Credit Billing Act (FCBA) grants cardholders the right to dispute incorrect charges. Disputing an incorrect bill and requesting a chargeback is fairly straightforward, but each creditor may have a slightly different process. Generally, you'll take the following steps:\n1.  Contact the credit card company. Depending on the creditor, you may be able to do this online, by phone or by mail.\n2.  Explain the error. Be sure to include your contact information, the account number and any documentation you have that supports your claim.\n3.  Wait for your card issuer to investigate. This could take up to 90 days. In the meantime, continue to pay your credit card bill as scheduled and respond to any communication you receive from the creditor. Your card issuer may remove the transaction in question from your bill while the chargeback is investigated. END
 TITLE: How to Request a Credit Card Chargeback CONTENT: When Does It Make Sense to Request a Chargeback?\n------------------------------------------------\nAn incorrect charge can happen for a number of reasons, from a simple calculation error to an identity thief committing an intentional act of fraud. The best response depends on some of the details, specific to your situation.\nHere's how to navigate each of the most common scenarios:\n*   **An unfamiliar charge**: If you see a transaction you don't recognize, look at the merchant's name and date. Searching for the merchant online or reviewing your calendar may help jog your memory of the purchase. If it's still unfamiliar, you may be the victim of fraud and you should take action to protect yourself immediately, including by filing a chargeback request.\n*   **An incorrect charge amount**: Perhaps a server calculated your tip incorrectly or accidentally charged you twice. To resolve the error, start by looking for your receipt, and then contact the merchant. If the merchant won't correct the charge, your next step is to request a chargeback.\n*   **A product or service you never received**: Did you order a package that was never delivered, or cancel a membership fee and still got charged? Prepare phone records or documents to support your case, and then contact the vendor to get the charge reversed or otherwise made good. If you're unsuccessful, you can request a chargeback from your credit card issuer.\nIn some circumstances, a chargeback isn't an option you should consider. If you have trouble paying for a purchase, or simply don't feel like it, you should not request a chargeback—abusing the system could be considered an act of criminal fraud.\nIf you received a damaged or broken product, skip the chargeback request and reach out directly to the merchant for a refund or a replacement.  \nWill Requesting a Chargeback Impact Credit?\n-------------------------------------------\nThe outcome of chargeback can affect your credit if it changes the amount of credit you're using relative to your credit limit—your credit utilization ratio.\nYour credit card balances are a big factor in calculating your credit scores, which means a high-dollar purchase could cause scores to dip. If the charge is inaccurate or fraudulent and ends up being removed, you should see your scores come back up. On the other hand, if your chargeback request is unsuccessful and causes your balance to stay elevated, a credit utilization ratio above 30% can start to harm your credit scores.\nWhile the chargeback request is being sorted out by the card issuer, a notation may be added to the account on your credit report to indicate that the account is in dispute. These notations don't directly affect your creditworthiness, but a creditor may ask about it or require it to be resolved before moving forward with your credit application.  \nHow to Protect Your Credit Card\n-------------------------------\nMost credit cards come with fraud protection features, but creditors can't always catch incorrect or suspicious charges. Your best defense is to practice good financial habits, which include reviewing your credit card statements on a weekly basis.\nYou can also catch signs of fraud by regularly monitoring your credit reports. Make sure to look for unfamiliar credit accounts and evidence of applications for new accounts (hard inquiries). For some added peace of mind, sign up for identity theft monitoring and security alerts so you can respond to suspicious activity as soon as it takes place. END
 TITLE: How to Request a Credit Card Chargeback CONTENT: Will Requesting a Chargeback Impact Credit?\n-------------------------------------------\nThe outcome of chargeback can affect your credit if it changes the amount of credit you're using relative to your credit limit—your credit utilization ratio.\nYour credit card balances are a big factor in calculating your credit scores, which means a high-dollar purchase could cause scores to dip. If the charge is inaccurate or fraudulent and ends up being removed, you should see your scores come back up. On the other hand, if your chargeback request is unsuccessful and causes your balance to stay elevated, a credit utilization ratio above 30% can start to harm your credit scores.\nWhile the chargeback request is being sorted out by the card issuer, a notation may be added to the account on your credit report to indicate that the account is in dispute. These notations don't directly affect your creditworthiness, but a creditor may ask about it or require it to be resolved before moving forward with your credit application. END
 TITLE: How to Request a Credit Card Chargeback CONTENT: How to Protect Your Credit Card\n-------------------------------\nMost credit cards come with fraud protection features, but creditors can't always catch incorrect or suspicious charges. Your best defense is to practice good financial habits, which include reviewing your credit card statements on a weekly basis.\nYou can also catch signs of fraud by regularly monitoring your credit reports. Make sure to look for unfamiliar credit accounts and evidence of applications for new accounts (hard inquiries). For some added peace of mind, sign up for identity theft monitoring and security alerts so you can respond to suspicious activity as soon as it takes place. END
 TITLE: What Happens When You Go Over Your Credit Limit? CONTENT: A credit limit is the maximum amount that you can charge on a credit card. As a revolving credit account, there is no predetermined payoff date for the amount you borrow. You can charge up to the credit limit and pay at least the minimum amount due, with any remaining balance shifted over to the next month—with interest added.\nThe credit limit that's attached to your card is determined by the issuer when you apply for the card, and depends on three basic factors:\n*   **Your credit report and score**: Your history with credit is a major factor in the card's credit limit. After you apply, the issuer will review one or more of your credit reports or credit scores provided by the three consumer credit bureaus: Experian, TransUnion and Equifax. If your credit score is low (or you don't have one), you might be perceived as more of a credit risk, so the limit will likely be on the low side. If your credit score is high, the issuer will perceive you as less of a credit risk and, in turn, could grant you a higher credit limit. The number of open accounts you have and their credit limits may also be factored in—a card issuer might want to see how you're doing with your existing cards.\n*   **Your financial circumstances**: The issuer also considers your income, existing debt and other financial obligations. You would list those details on the credit card application. If you have a lot of available cash you can use to cover your credit card bill, the card issuer may bump up your limit.\n*   **The credit issuer's internal factors**: The credit card issuer may extend higher or lower limits based on how much money it is comfortable lending. Broad economic conditions and the lender's own financial circumstances are generally taken into account. Additionally, some accounts are designed as starter cards that have predetermined credit limit maximums, such as a secured card where the limit matches the security deposit.\nBe aware that a credit limit and available credit are two separate concepts. The credit limit is the amount that you can borrow, but the available credit is the amount you can borrow minus any outstanding debt. So if your credit card has a $5,000 credit limit, and you owe $4,000 on it, your available credit is $1,000. END
 TITLE: What Happens When You Go Over Your Credit Limit? CONTENT: How Does Going Over Your Credit Limit Work?\n-------------------------------------------\nDepending on your credit issuer, you may be able to spend more than the credit limit that's attached to your account. Instead of the transaction being declined when you attempt to pay, it can go through as long as the issuer allows it. That can happen if you have a long history of treating that account responsibly. You may also have opted in for over-limit protection, which gives you the opportunity to charge more than your credit limit.\nBut there are several negative consequences you may face for going over your credit limit. What they can be depends largely on the credit issuer's policies and your credit history, as well as whether you opted in for over-limit protection.\nCommon outcomes include:\n*   **Declined purchase**: Unless the issuer approves the purchase or if you enrolled in over-limit protection, the transaction will not go through if you have already hit your credit limit. That can put you in a bad financial place if you need something and have no other way to pay.\n*   **Extra costs**: Although the advantage of over-limit protection is that you can charge more than you're technically allowed to, the disadvantage is that the credit issuer can charge you a fee for that privilege. According to the federal Credit CARD Act, the fee can be $25 the first time you go over the limit and $35 other times you do so within a six-month period. If you make this a frequent practice, those fees will rack up. There's also the larger interest charges a maxed-out balance is likely to incur.\n*   **Account goes into default**: If you go over your credit limit, your account may be considered in default. The credit issuer may then hike up your interest rate and reduce your credit limit. It may even cancel or suspend the card or increase the minimum requested payment.\n*   **Sticker shock once a no-interest period ends**: If your card offers a 0% APR intro period, you may be tempted to build up a high balance. But a balance that is at or over the limit can be a challenge to repay. If you don't delete the balance by the time the card's (likely much higher) ongoing rate kicks in, the debt could easily wind up being much more expensive than you expected. END
 TITLE: What Happens When You Go Over Your Credit Limit? CONTENT: How Going Over Your Credit Limit Can Affect Your Credit\n-------------------------------------------------------\nCredit utilization is one of the primary factors in the two most commonly used credit scores: FICO® Score☉ and VantageScore®. Utilization is usually expressed as a percentage; it'll show how much of your available credit you're using on a per-card or a total basis.\nA low credit utilization ratio is attractive to lenders and positively impacts a credit score because it shows that you're using credit cards as payment tools for things you can afford. Conversely, charging more than the limit can be an indication that you are having financial problems.\nAs a general rule, it's best to keep your total credit utilization rate to below 30%. Practically speaking, this means that if your credit card's limit is $10,000, for example, the balance you roll over to the next month should be less than $3,000. When it comes to your utilization rate's effect on your credit scores: the lower, the better. END
 TITLE: What Happens When You Go Over Your Credit Limit? CONTENT: How to Avoid Charging Past Your Credit Limit\n--------------------------------------------\nIt can be easy to lose track of how much you're spending with your credit card and then find yourself dangerously near the limit. You can avoid this situation with a few strategies:\n*   **Charge and pay.** You will never have to wonder whether or not you're close to the limit if you pay off your charges right away. Download your bank's app to make the transaction immediately. Charge $300 worth of groceries? Send $300 to your credit card issuer before getting in the car and driving away.\n*   **Set a fixed charging amount for the month.** To keep your credit utilization ratio under 30%, figure out how much that will be for your card and stick to it. If your card's credit limit is $1,000, $300 will be your personal limit.\n*   **Review your statements weekly.** You can prevent balances from getting out of hand by pulling up your credit card statement at least weekly. If the amount you owe is creeping up, stop charging.\n*   **Request a credit limit increase.** It's entirely possible that your credit limit is simply too low for your lifestyle needs. If you have been a good cardholder and your credit reports and scores are in great shape (especially if you've never missed a payment), appeal to the issuer for a credit limit increase. It will also analyze your income and credit habits, and as long as you meet the issuer's criteria, it may increase your limit. END
 TITLE: What Happens When You Go Over Your Credit Limit? CONTENT: Read Your Credit Report to Stay Informed\n----------------------------------------\nAlthough going over your credit limit on the rare occasion isn't a tragedy, it's best to not make it a habit. Reviewing your credit report on a regular basis will also help you maintain awareness. You can access your free Experian credit report any time you want. There are no credit scoring repercussions for checking your own report, and you'll know what information is being factored into your credit scores. END
 TITLE: Do I Lose My Rewards When My Credit Card Closes? CONTENT: What Happens to Your Rewards if You Cancel a Credit Card?\n---------------------------------------------------------\nWhat happens to rewards when a card is canceled will depend on the credit card's terms, the card you have and the reason for the card being closed. Rewards won't be impacted if they've been accruing in a separate frequent traveler program, but closing a general rewards card might cause you to lose your rewards or have to use them within a certain period before they expire. END
 TITLE: Do I Lose My Rewards When My Credit Card Closes? CONTENT: How to Cancel a Card Without Losing Your Points\n-----------------------------------------------\nIf you want to close your credit card and have been making your payments on time, but don't want to lose your rewards or use them right away, you may have several options:\n*   **Downgrade to a different card.** Some credit card issuers let you \"product change,\" or switch between credit cards from the same issuer without closing your account. This can be a good option if you want to close a card because of an annual fee if there's another card that's part of the rewards program without an annual fee.\n*   **Transfer the points to another card.** If you have multiple cards that are part of the same program, you can sometimes move rewards between accounts. Make sure you move the points from the card you plan on closing before closing it.\n*   **Transfer the points to travel programs.** Similarly, some card issuer rewards programs let you transfer your points to partners' frequent travel programs. Transfer the points before closing the card, and you can redeem your points or miles later.\nAlso, you might not want to close a card if you've had it for less than a year. Opening a card, earning an intro bonus and then quickly closing your card could be interpreted as gaming the system and the issuer might clawback your rewards.\nIf you really want to close the card because of an annual fee, ask about downgrading and retention offers. Some card issuers may offer you additional rewards or a statement credit if you keep your card open. However, you may need to call (and sometimes say you're considering closing the card) to find out if you qualify for a retention offer. END
 TITLE: Do I Lose My Rewards When My Credit Card Closes? CONTENT: How Does Canceling a Credit Card Affect Credit?\n-----------------------------------------------\nClosing a credit card can sometimes be the best option, particularly if you won't lose any rewards and can avoid paying fees for a card that's not helpful right now.\nWhile closing a card can hurt your credit, the reasons are often misunderstood. For example, closing a card won't shorten your credit history or immediately impact the average age of your accounts. A closed card that's in good standing can stay on your credit reports for up to 10 years, and continue to count toward your age-related credit scoring factors during that time.\nClosing a credit card will, however, decrease your available revolving credit, which directly impacts your credit utilization rate—an important scoring factor.\nFor example, if you have two credit cards with $5,000 credit limits, your total available credit is $10,000. Closing one credit card will lower your total available credit to $5,000. If you have a $2,500 balance on the card you keep open, your utilization rate jumps from 25% to 50%.\nA lower utilization rate is better for your credit scores, which is why closing a card can hurt your credit. However, if you can maintain a low utilization rate (such as below 10%) after you close your card, you might not see a big score change. END
 TITLE: Do I Lose My Rewards When My Credit Card Closes? CONTENT: Review the Program Terms and Monitor Your Credit\n------------------------------------------------\nIf you're considering closing a credit card and worried about losing rewards, review the program's terms carefully to see what will happen. Sometimes you'll have access to your rewards for a limited time. Or, you may be able to transfer and keep your rewards even if you close a card. You can also sign up for free credit monitoring to see how closing your card impacts your credit, and learn how to improve your credit in the future. END
 TITLE: How Long Does a Credit Card Refund Take? CONTENT: Do All Refunds Take the Same Amount of Time?\n--------------------------------------------\nThe speed at which you'll get your money back varies widely, but there are a few things you can look into to get a better idea of when the funds will appear in your account.\nFirst, check the merchant's return policy. Every seller sets their own policy for accepting and processing returns. Read through the entire policy to find out:\n*   **Whether and how they handle refunds**: Some merchants only offer store credit. Others may require you to get a pre-return authorization before you send anything back.\n*   **How to return your item**: Who pays for shipping? Can you return the item to a store location near you?\n*   **How quickly they issue a refund**: This can range from \"immediately\" to 30 days or longer. Amazon's policy says they will process your credit card refund in three to five business days after receiving a returned item. Madewell.com says to allow \"up to two weeks\" for a return to process.\nOnce the merchant processes your refund, it's up to your card company to post the credit to your account. This typically takes three to seven business days.\nThese timeframes apply to simple refunds, in which you and the seller agree to a return. If the seller does not agree, you can work with your card company to dispute the charge and get your money refunded. This is a separate process that may take as long as six months to resolve. END
 TITLE: How Long Does a Credit Card Refund Take? CONTENT: Can You Speed Up the Refund Process?\n------------------------------------\nIf you add up each of these steps, it's easy to see how much time even a simple return can take. Although getting a refund credited to your account almost never qualifies as fast money, you may be able to accelerate the process by taking these steps:\n*   **Get it there faster.** Macys.com processes refunds within three to five days after receiving an item by mail, but items returned to a store are credited immediately. Dropping your item off at a retail location eliminates shipping time from the equation. Some online-only retailers may also have agreements with brick-and-mortar businesses to process their returns, such as Amazon has with Kohl's. If you have to ship your return, expedited shipping can get it there faster—for a price.\n*   **Take advantage of loyalty benefits and store credit.** Some merchants offer expedited return shipping or faster return processing to customers who belong to their loyalty programs. And if you're open to receiving store credit instead of a refund to your credit card, you may get it faster, since your card issuer won't need to get involved. END
 TITLE: How Long Does a Credit Card Refund Take? CONTENT: How Does a Refund Affect Your Credit Card Account?\n--------------------------------------------------\nTo understand how a refund works, it helps to understand how credit card payments are processed. When you make an online purchase using your credit card, the merchant requests payment from your card company. Your card issuer makes a payment on your behalf and adds that amount to your card balance, reducing your available credit line. In effect, they're loaning you the money to buy the item. This is why most merchants will only issue a refund to the card you used for the original purchase—the money part of your transaction happened with the card company and not you.\nAny money refunded to your account is treated as an account credit. It does not count as a payment or partial payment. And you won't receive it as a separate payout: The card company won't send you a check for the refund. It's simply a credit on your account.\nSay you bought a $2,000 mattress with a yearlong return policy. Three months later, you decide it's ruining your sleep and return it for a refund to your credit card:\n*   You are responsible for payments that are due on this balance for the three months you own the mattress.\n*   You are also responsible for any payments that might be due while you're waiting for the mattress company to issue a refund and for the card company to credit your account.\n*   You will still be liable for any interest charged against the $2,000 is you carried a balance during the three months you owned the mattress. This money will not be refunded to you.\n*   If you scored any credit card rewards points with your purchase, they'll be reversed when the refund goes through.\nIf you aren't already using a mobile app to check account activity, now is a good time to start. You'll be able to track your refund—and view transactions, due dates and notifications. Monitoring your account activity is an important part of managing your credit cards and key to staying current on your payments and understanding your interest payments. END
 TITLE: How Long Does a Credit Card Refund Take? CONTENT: Will a Delayed Refund Hurt Your Credit?\n---------------------------------------\nIf your refund is taking longer than expected, don't despair too much. Even a delayed refund shouldn't hurt your credit, as long as you manage your account wisely while the refund is pending. Remember to pay your bill by the due date and mind your credit limit so you don't overextend yourself.\nA delayed refund can, however, start to affect your credit score if it means you'll maintain a higher credit utilization ratio for a longer period of time while you wait. A large purchase might affect your credit utilization ratio—the amount of available credit you have divided by your total available credit—which, in turn, affects your credit score. If you charged $2,000 to your credit card to buy a mattress, the purchase might represent 20% utilization of your $10,000 credit limit. That's something, but not enough to hurt your scores if it's the only purchase you have on your card. But suppose you decide to use the same card to purchase another mattress before your refund posts. Then you might have a $2,000 + $2,000 = $4,000 balance. That brings your credit utilization to 40%, past the point at which this factor can start to drag down your credit scores.\nSince a pending refund should be temporary, however, it might not cause much of a dip.\nOn the other hand, it's never a bad idea to avoid this risk in the first place by avoiding a new purchase until after your refund posts to your account. An issue with the refund might extend how long it'll take even further, or mean you can't get a refund at all. Once the refunded money is credited to your account, you'll know you have those funds available to spend—or save—for certain. END
 TITLE: Will Closing a Credit Card Hurt Your Credit? CONTENT: How Closing a Credit Card Will Affect Your Credit Score\n-------------------------------------------------------\nClosing a credit card can affect your credit score for a few different reasons.\nFor starters, when you close a credit card account, you lose the available credit limit on that account. This makes your credit utilization ratio, or the percentage of your available credit you're using, jump up—and that's a sign of risk to lenders because it shows you're using a higher amount of your available credit. Experts recommend that you keep your utilization rate under 30%, and in general, the lower the rate, the better. To calculate your credit utilization ratio, divide the total of all your credit card balances by the total of all your credit limits; your resulting percentage is your utilization ratio.\nClosing a credit card can also affect your score because it can lower the average age of accounts on your credit report, especially if it's an account that's been open for a long time. The age of your accounts is factored into your credit score, with longer payment histories bolstering your credit score. This shouldn't cause immediate concern, however, since accounts closed in good standing stay on your credit report for 10 years and are factored into credit scores the entire time they remain. Closed accounts that have missed payments associated with them will remain on your credit report for seven years.\nWhile your scores may decrease initially after closing a credit card, they typically rebound in a few months if you continue to make your payments on time. It becomes evident that you just closed an account and didn't take on new debt, but it can take some time. So don't cancel a credit card if you plan to apply for other credit, such as a mortgage or auto loan, in the next few months. END
 TITLE: Will Closing a Credit Card Hurt Your Credit? CONTENT: When Canceling a Credit Card Makes Sense\n----------------------------------------\nThere are a few situations in which it may make sense to cancel a credit card. For example, if:\n*   The card has a high annual fee and the benefits aren't worth it to you\n*   The interest rate on the card is high and you need to carry a balance\n*   You are struggling to manage your debt load and are having trouble resisting the temptation of living beyond your means with the card\n*   You want to get rid of a bare-bones card, like a student card or secured card, in exchange for a regular or rewards card END
 TITLE: Will Closing a Credit Card Hurt Your Credit? CONTENT: When It's Better to Keep the Card\n---------------------------------\nOn the flip side, there are certain circumstances when it can be wiser to keep the account open, such as when:\n*   It's the oldest account on your credit report\n*   You don't have many other open credit accounts, which can result in a thin credit file, making it harder to qualify for future credit\n*   The only reason you're canceling it is that you don't use it very often END
 TITLE: Will Closing a Credit Card Hurt Your Credit? CONTENT: How to Close a Credit Card Safely\n---------------------------------\nIf you've decided that it makes sense for you to cancel your credit card account, here are the steps to take so you have no issues:\n1.  If you have an outstanding balance, reach out to your credit card issuer and come up with a plan for paying it off. If at all possible, pay off the card before canceling.\n2.  If it's a rewards credit card, redeem any outstanding rewards so they don't go to waste.\n3.  Contact customer support and let them know you'd like to close the account, and ask that they confirm it with a notice in writing. Ask that it be noted that the account was closed at your request.\n4.  Follow up with a short letter to confirm your cancelation in writing. In this letter, you should put your name, phone number, address, credit card account number and any details about your call with customer service. Make sure to note that you want the account closed at your request, and keep a copy on file just in case. It can take a few weeks for your request to be processed, but if you haven't received a confirmation letter within a month, call your credit card issuer to follow up.\n5.  If the credit card is connected to any automatic payments, such as your cell phone bill or Spotify account, go through those accounts and update your payment information to another option so you don't accidentally miss any payments.\n6.  If you have any authorized users on your credit card account, let them know that you are closing the account and ask them to destroy their card.\n7.  Now it's your turn to properly destroy your credit card. If your shredder is capable of shredding cards, put it through that. If not, cut up the card thoroughly, and consider putting pieces of it in different trash bags around your home, which would make it harder for a potential thief to find and piece together your credit card information. END
 TITLE: Will Closing a Credit Card Hurt Your Credit? CONTENT: Alternatives to Canceling a Credit Card\n---------------------------------------\nIf you've decided it's worth it to keep your card around to help your credit, there are a few ways you can remedy the issues that were leading you to want to cancel the card.\nFor credit cards with burdensome annual fees, call your issuer and ask if they would consider lowering or waiving the annual fee for a year. Some credit card issuers are willing to do this as a way to retain customers.\nIf you're worried you'll overspend or get into more debt if you keep the card, stash it somewhere secure or even freeze it in a block of ice. If you're really struggling to resist the temptation, some issuers will let you pause your credit card account, meaning it can't be used by anyone, but it isn't closed. Call your issuer's customer support and ask whether this is an option.\nIf you want to cancel the card because you rarely use it, keep it active by either putting one small purchase on it each year or putting a small recurring monthly charge on it—for example, your Netflix account. Just make sure you don't forget about it, and always pay it off right away so you don't get stuck paying interest. This will help keep your account open and active without you having to think much of it, since some issuers will automatically cancel a card if there is no spending activity for a year. END
 TITLE: Will Closing a Credit Card Hurt Your Credit? CONTENT: Check Your Credit Before Closing an Account\n-------------------------------------------\nClosing a credit card account can make sense in certain circumstances, but it's important to understand that it can adversely affect your credit score. Before your close your account, consider taking a look at your credit report to see where you stand and make sure that closing the account won't leave you with a credit history that's too thin or too new. While the negative effects of closing a credit card account are usually temporary, it might be worth keeping a long-standing account open if you're able to. END
 TITLE: Authorized User vs. Cosigner: What Is the Difference? CONTENT: How Being an Authorized User Works\n----------------------------------\nAs an authorized user on a credit card account, you're able to make purchases, but only the primary account holder is responsible for paying off the debt. The account owner may decide to give you a physical card of your own—or not. To learn how to build credit responsibly, it's ideal to have your own card and pay the primary cardholder for any charges you make immediately. Make sure that the credit card issuer reports authorized users' behavior to the three credit bureaus (Experian, TransUnion and Equifax) so it does, in fact, help you.\nOn the flip side, if the person who owns the account maintains a high balance on the card or misses payments, the arrangement won't benefit your credit. Some credit bureaus may even include the main account holder's negative information on your credit report. That makes it crucial to choose wisely when considering whose account to join.\nIt's easy enough to remove yourself as an authorized user, if necessary, by calling the credit card company and making the request. Doing so could affect your length of credit history, though, if the account was the oldest you were associated with. END
 TITLE: Authorized User vs. Cosigner: What Is the Difference? CONTENT: What It Means to Be a Cosigner\n------------------------------\nUnlike an authorized user, a credit card cosigner is legally responsible for paying the charges on the card if the primary cardholder can't. The account will appear on both cardholders' credit reports, and negative information will seriously affect the cosigner's credit—especially missed payments, since payment history is the largest contributor to a FICO® Score☉ .\nThe amount of debt on the card will also be factored into the cosigner's debt-to-income ratio, potentially affecting whether he or she can get credit in the future. END
 TITLE: Authorized User vs. Cosigner: What Is the Difference? CONTENT: When Does It Make Sense to Be an Authorized User?\n-------------------------------------------------\nIf you're in the process of building credit, joining an account as an authorized user can be an effective way to kick-start your credit history. A child, for instance, can be on a parent's credit card to develop credit of their own. You can also become an authorized user on a partner's, sibling's or other financially responsible person's account, as long as they keep their credit usage low and make on-time payments each month.\nAlso, most credit card issuers, with the exception of Bank of America, U.S. Bank and Wells Fargo, don't permit customers to add a cosigner. So going the authorized user route may be the best way to get access to a traditional credit card without much credit history.\nIf you don't have a trustworthy primary account holder available to you, there are many other ways to build credit. Look into credit-builder loans or secured credit cards, for instance, which you can get on your own—and, in the case of a credit-builder loan, without having to put down a deposit.\n> Find the best secured credit cards in Experian CreditMatch™. END
 TITLE: Authorized User vs. Cosigner: What Is the Difference? CONTENT: When You Should Choose a Cosigner\n---------------------------------\nThere are multiple ways to use credit cards without a cosigner, but some financial products may require a cosigner if you don't have sufficient credit history. A lender may decide you can't qualify for an auto loan on your own, for instance, which would make using a cosigner a strong option.\nPrivate student loans may also require a cosigner, since undergraduates in particular often do not have enough credit to be eligible on their own. Federal student loans, though, are not credit-based, so students can get funding for college without a credit check. Compared with private loans, federal loans also generally have lower interest rates and more flexible repayment programs. It's best for students to borrow the maximum amount possible in federal loans, in addition to taking all the grants and scholarships they qualify for, before exploring private loans. END
 TITLE: Authorized User vs. Cosigner: What Is the Difference? CONTENT: The Bottom Line\n---------------\nCombining finances with someone else is a major decision. Have a candid conversation about expectations, and the potential credit impact, before moving forward with becoming an authorized user or asking someone to cosign a loan. END
 TITLE: What Should Kids Use a Credit Card For? CONTENT: When to Get Your Kids a Credit Card\n-----------------------------------\nIf you're deciding when to get your child a credit card, current legal guidelines can help. To sign a credit card contract, a person has to be at least 18 years old, ruling out younger kids who want their own card. Instead, you can make a minor child an authorized user on your personal account. Many issuers (such as Capital One and Chase) have no age restrictions, though some require authorized users to be teenagers.\nWhen you authorize your child to use your account, a card imprinted with his or her name will be issued. Your child then has the right to charge with it. If that makes you nervous (understandable, especially if you have a high limit), you may ask the issuer to set a lower credit line for the user. As the account owner, you maintain total control. You can and should impose rules for access. For example:\n*   Preteens may not carry the card but can use it under your direct supervision.\n*   Young teens may have access to the card under certain circumstances.\n*   Older teens may carry the card in their wallets or upload the account information to their mobile devices.\nIf you don't want the card to be used at specific places or over a certain amount, say so. In fact, write it down. This way you can avoid \"But you said…\" conversations later. END
 TITLE: What Should Kids Use a Credit Card For? CONTENT: When Your Child Should Use Their Credit Card\n--------------------------------------------\nStart by explaining that a credit card is a payment tool, and each time they use it they are borrowing money from the credit card issuer. Because you're the owner, you will get the bill. If you pay for everything that was charged in that billing cycle by the due date, it won't cost anything more than the purchase price. But if you pay partially, interest will be added to the remaining balance. Discuss the danger of carried-over debt and how it can quickly—and expensively—grow.\nAfter that, set the rules for what your child may charge. Some common charges parents allow—usually with limits—include:\n*   tutoring and coaching services\n*   a small indulgence a week or month\n*   clothes and accessories\n*   academic and hobby supplies\n*   food and beverages outside of school\n*   movies, concerts and sporting events\n*   swimming pool and recreation center entry fees\n*   dance and prom tickets\n*   gas for the car\n*   pet care (if your child has assumed responsibility)\n*   electronic transactions (such as Venmo)\nIt can also be smart for a child who is frequently out and about to have a credit card as protection against emergencies. For example, you may want to add a car sharing app to your child's phone, but insist that they use it only when necessary. END
 TITLE: What Should Kids Use a Credit Card For? CONTENT: Teach Your Kids to Use Credit Cards Responsibly\n-----------------------------------------------\nShow your child how you check the account's activity on your phone or on the creditor's website. This will drive home the fact that there really are no secrets. When your child uses the card, it's there in black and white.\nAlso crucial: Make sure your child keeps the credit card safe. It should never be used by a friend or left where it could be stolen. If it does disappear, your child must notify you immediately.\nEmphasize the importance of tracking spending and ensuring you can pay off the balance each month. You may expect your child to repay you for some or all of their charges, so be clear about it from the beginning. The money might have to come from an allowance, savings, financial gifts or a job. As the credit card owner, you will collect what's due and deal with the debt, so it is crucial that you follow through on this task.\nRemember, you are demonstrating responsibility. If you allow your child to rack up charges that you end up paying, you're teaching poor money and credit habits. On the other hand, if you are strict about this process, you are showing the seriousness of the situation. Everything borrowed must be repaid, on time and in full. If not, there may be consequences that you can impose, such as:\n*   Extra chores\n*   Added fees\n*   Removing the card temporarily\n*   Revoking the card permanently if it happens more than once\nIf you're uneasy about letting your child piggyback on your credit card, a prepaid card may be preferable. These are debit cards that can be filled with funds, and since they are usually connected to such payment networks as Visa, Mastercard and American Express, your child is free to use the card anywhere the network is accepted (if you give permission). With each use, the balance declines. When the card is empty, it can't be used again until more money is added. Since no borrowing is involved, debt is not possible. Risk is minimized, though debit cards won't help your child create a credit history. Consider them credit card training wheels. END
 TITLE: What Should Kids Use a Credit Card For? CONTENT: Early Lessons Help You and Your Child\n-------------------------------------\nA credit card can give your child an exciting sense of freedom and the ability to make safe and secure transactions. When it's kept in good standing, it will boost his or her credit scores, which will help when it comes time to get a credit product in his or her name, rent an apartment, or do anything else that requires an attractive credit report.\nDon't be afraid to start credit card school, which includes access to a card, as soon as your child seems up to the task. When your child understands how these accounts work, he or she will not only feel comfortable and capable, but will be less apt to come to you to for a financial bail out later on in life. END
 TITLE: How Many Credit Cards Should a College Student Have? CONTENT: Getting a credit card while you're in college is a good idea for a couple of reasons. If you ever shop online, a credit card offers stronger fraud protection than a debit card, limiting your liability to $50. A credit card can be a safety net in case of large, unexpected expenses, such as a costly car repair. Perhaps most important, using a credit card responsibly will help you build a credit history, which is one of the first steps of \"adulting.\" You'll need a credit history to rent an apartment or get a loan to buy a car, for instance. (If you don't have a credit card yet, find out how to get your first credit card.) END
 TITLE: How Many Credit Cards Should a College Student Have? CONTENT: How Many Credit Cards Is Considered too Many?\n---------------------------------------------\nYou're ready to add some new credit cards to your wallet—but how many? There's no specific right number of credit cards that applies to everyone. However, having several cards can help you build your credit history in a couple of ways.\nIf you only have a few accounts on your credit report (say, a student loan and one credit card), you have what's called a thin credit file. In other words, there's not a lot of evidence that you're good at managing your credit. Adding more credit accounts (such as new credit cards) helps create a better picture of how you handle credit.\nIn addition to the number of credit accounts you have, the amount of credit you're using compared with the total credit you have available is another factor in your credit score. This measure is called your credit utilization ratio.\nSuppose you have one credit card with a credit limit of $1,000. If you have a balance of $600, you're using 60% of your available credit (1,000 divided by 600). Since credit scoring models like to see 30% utilization or less, using this much can hurt your credit score.\nHowever, if you have three credit cards with a total credit limit of $3,000 and you have a total balance of $600 on all three, you're only using 20% of your available credit (3,000 divided by 600). That's much better, in creditors' eyes.\nOK, now you're convinced you need more credit cards. Before you hop online to apply, stop and ask yourself: Can you handle the urge to splurge? A wallet full of shiny new credit cards might tempt you to treat all of your friends to pizza every Friday or book a spring break trip you really can't afford. If you're still struggling to manage one credit card, or if you have a tendency to overspend in general, you should probably wait to get more credit cards until you're better at managing money. After all, you want these credit cards to help improve your credit score, not hurt it. END
 TITLE: How Many Credit Cards Should a College Student Have? CONTENT: How to Manage Multiple Credit Cards\n-----------------------------------\nOnce you've decided to take on multiple credit cards, follow these tips to handle them responsibly.\n*   **Pay your credit card bills on time.** Keeping track of due dates for multiple cards can get tricky. Use calendaring apps, alerts and reminders to stay on track, and set up auto pay to keep you on schedule.\n*   **Check your credit activity regularly.** Go online to look at your statements at least once a month and check for anything unusual. The faster you catch a fraudulent charge, the faster it can be removed from your record.\n*   **Spend only what you can afford.** Don't carry a balance; charge only as much as you can pay in full each month. Using a free budgeting app like Mint.com or PocketGuard can help you keep track of your spending.\n*   **Use all of your cards.** If you have three credit cards but only use one of them, you're not improving your credit scores as much as you could be. To keep all your cards active, alternate purchases from one card to the other, or put a small, recurring charge (like your Netflix account or cell phone bill) on each card.\n*   **Know the terms of your credit card agreements.** These include:\n    *   **Balance**: the total amount you owe at any given time. If you don't pay off the balance in full, you'll be charged interest on the remaining amount.\n    *   **Annual percentage rate (APR)**: indicates the interest you'll pay on balances. The same credit card can have different APRs, such as a lower APR for purchases and a higher one for cash advances. Learn more about APR.\n    *   **Minimum payment**: the minimum amount you must pay that month to remain in good standing.\n    *   **Late fees**: fines for late payments. Your APR may also be adjusted upwards if your payment is late.\n    *   **Annual fees**: Cards that offer rewards, such as airline miles, often charge annual fees.\n    *   **Grace period**: The amount of time you have to pay off a purchase without incurring interest. END
 TITLE: How Many Credit Cards Should a College Student Have? CONTENT: How Applying for Multiple Credit Cards Affects Your Credit Score\n----------------------------------------------------------------\nBe aware that when you apply for several credit cards over a short period of time, your credit scores might be affected. Why? You're potentially taking on more debt, which is inherently risky. In addition, every time you apply for a credit card, the card issuer makes an inquiry into your credit report. (An inquiry is just a record that a lender has checked your credit report because you applied for credit.) Both of these factors can lower your credit score a bit. The good news: This dip should only last a few months.\nSpeaking of credit scores, it's a good idea to get a free credit report before applying for any new credit cards so that you know what your credit file looks like and can correct any mistakes.\nCollege is a time to learn. By getting more than one credit card and using your cards wisely, you can learn one of the most important life skills there is: how to manage your money. END
 TITLE: What Is a Convenience Check? CONTENT: How to Get Convenience Checks\n-----------------------------\nConvenience checks often come in the mail as part of a credit card promotional offer. If you don't yet have a credit line with the company, they sometimes come as a sort of welcome offer. The information packet that comes with the credit line should outline any stipulations that go along with the convenience checks.\nIf you have open lines of credit with a company, convenience checks may arrive with your paper statements in the mail. You may find a separate insert that describes the terms of use. If not, you can also see that information by logging in to your online account.\nYou can also request to have convenience checks printed. Your bank or card issuer can likely perform this service, but there is usually a small fee associated with it. Consider calling ahead to find out how your bank or financial institution handles printing convenience checks. END
 TITLE: What Is a Convenience Check? CONTENT: Where Can I Cash a Credit Card Convenience Check?\n-------------------------------------------------\nSince convenience checks work in much the same way as personal checks, you can usually cash one anywhere that would cash a personal check. Check cashing fees are generally the same as well.\nYou may not be able to immediately access the full amount of the check, though. If the check amount is large, it is common practice for banks to give you only a portion of the money and deposit the rest into your account. This deposit may be held for several days before it's made available to you, so make sure you understand how your bank will handle cashing a convenience check before you start the process. END
 TITLE: What Is a Convenience Check? CONTENT: What to Consider Before Getting a Convenience Check\n---------------------------------------------------\nConvenience checks work like cash advances. So they usually include advance fees, higher interest rates and stricter penalties around repayment.\nConvenience checks do not have grace periods like credit card charges. So if something unexpected happens and you're unable to repay the balance in full immediately, you will incur interest charges.\nAnother thing to consider is that there are no restrictions in place that will prevent you from cashing a check that puts you over your credit limit. If you go over your credit limit with a convenience check, penalties may apply. END
 TITLE: What Is a Convenience Check? CONTENT: How a Convenience Check Can Affect Your Credit Score\n----------------------------------------------------\nIf you use a convenience check responsibly, it won't affect your credit score. However, these checks do make it easy to borrow large amounts. The more that you borrow against your credit line, the more it will increase your credit utilization ratio, which is the percentage of your total credit limit that you're using. END
 TITLE: What Is a Convenience Check? CONTENT: The Bottom Line\n---------------\nCredit card companies often use convenience checks as a way to get you to use your credit. But for most people, it's best to avoid using them. They have many penalties, few buyer protections and plenty of fees.\nLike the name implies, they might seem like an easy way to access cash without the fuss, but there are many stipulations attached to convenience checks. If you do decide to use one, it is best to have a contingency plan in place in case you are unable to pay off the debt.\nCarefully review the fine print, and weigh the cost of cashing the check against what your financial situation will look like if you can't pay off the balance. In most cases, it is best to shred the checks and consider another way of getting the cash. END
 TITLE: How Do I Transfer Money from My Credit Card to a Bank Account? CONTENT: Can You Transfer Money From a Credit Card to a Checking Account?\n----------------------------------------------------------------\nIf you have a financial emergency and choose to take cash out via your credit card account, the way you'd do this is through a cash advance. This is a loan you must repay and that can't exceed the current balance available on your credit card. Be aware that interest starts accruing on the cash withdrawal as soon as you take it out. There's no grace period like there is with a typical credit card purchase, so if you need the money for something that you could just pay for with your card, it's better to that.\nBut if you need cash, the process for getting your money depends on your credit card issuer, so you'll need to find out what they offer. Here are a few ways you can typically get cash advance money into your bank account:\n*   **Direct transfer**: Some financial institutions allow you to directly transfer funds from your credit card to your checking account. U.S. Bank, for example, lets you complete this process entirely online. However, many issuers don't have this option. While this method is convenient, it might also make it a little too easy to take on more debt.\n*   **ATM**: Many banks and credit unions allow you to take out money for a credit card cash advance via an ATM; you just need to make sure your credit card has a PIN. If you need this money to go into your checking account, you can then deposit your cash into your account (either at an ATM that accepts deposits, or at a branch).\n*   **In person**: You may be able to take out a cash advance out in person at a branch. If you go this route, you could then deposit the cash into your checking account.\n*   **Convenience checks**: These are checks your credit card issuer sends you that you can deposit in your bank account or use to pay for something like you would with a personal check. They function much like traditional checks, except the money comes from your credit card's line of credit rather than your checking account. END
 TITLE: How Do I Transfer Money from My Credit Card to a Bank Account? CONTENT: Is It a Good Idea to Transfer Money From a Credit Card?\n-------------------------------------------------------\nThe short answer is no, it's not a good idea to transfer money from a credit card to your bank account. It's always a better option to use income or savings when possible to avoid going into debt. If it's an unavoidable emergency and you must take on debt, consider other options that carry lower interest first. This could mean a low interest personal loan, home equity line of credit or a new credit card with a 0% interest introductory offer. Or you could even try to borrow the money from a friend or family member.\nThey might not be as bad as payday loans, but cash advances should never be the first option you consider for fast cash. For one, the interest rate on a cash advance is typically very high, so if it will take you some time to repay it, you'll pay a pretty penny in fees for this privilege. The interest rate on a cash advance is typically higher than the purchase APR on a credit card. But with a credit card purchase, you'll at least have a grace period of no interest for a few weeks, so a purchase will carry no interest if it is paid off fast enough. Cash advances have no grace period, so the interest starts accruing as soon as you take the cash out.\nThen there are the fees. Most credit cards carry a cash advance fee, which will be either a small flat fee or percentage of the advance amount, with the majority of card issuers charging a 5% fee for every cash advance. If you're taking out large amounts, that can add up fast.\nOnly take out a cash advance if you absolutely need the money in an emergency and don't have more cost-effective options. It's not wise to rely on them whenever you need money. You should also aim to only take out a cash advance if you can pay it back very quickly and minimize the amount of interest you pay. If your financial institution has online bill pay, this makes it easy for you to quickly start repaying what you've borrowed. END
 TITLE: How Do I Transfer Money from My Credit Card to a Bank Account? CONTENT: How Transferring Money From a Credit Card Can Affect Your Score\n---------------------------------------------------------------\nKeep in mind that using a cash advance to access money can have a negative impact on your credit. The amount of credit card debt you have relative to your total credit limit is called your credit utilization ratio, a factor that represents 30% of your credit score (it's the second-most important factor).\nTo find your credit utilization ratio, divide how much you owe on all your cards by your total credit limit. Using a significant amount of your available credit can be a red flag to lenders and creditors. Because of this, it's considered ideal to keep your ratio under 30%. Say your credit card's credit limit is $10,000 and you have a credit card balance of $4,000. Taking out a cash advance of $2,000 would cause your credit utilization ratio to jump to 60%. A ratio this high can start to negatively affect your credit score. END
 TITLE: How Do I Transfer Money from My Credit Card to a Bank Account? CONTENT: The Bottom Line\n---------------\nFast cash is tempting, and credit card issuers offer many different ways to easily get a cash advance, including the ability to directly transfer money from a credit card to your bank account. But it comes at a price, with high interest rates, steep fees and the potential to cause dings to your credit score, a cash advance is rarely your best option. If your current credit card's cash advance terms are really bad, consider finding a different credit card with lower cash advance fees or interest rates. END
 TITLE: What Is a CVV Number on a Credit Card? CONTENT: A CVV is a number on your credit card or debit card that's in addition to your credit card number and expiration date (and it's not the same as your PIN). Different issuers have slightly different names and locations for them. The CVV for Visa, Mastercard and Discover credit cards is a three-digit number on the back of your card, to the right of the signature box. American Express uses a four-digit code, which they call the card identification number (CID). The American Express CID is on the front of the card above the account number.\nWhen you present your card in person, you might be asked to show your ID or enter a PIN to verify the transaction. But it's not so easy to authenticate someone's identity for a purchase online or on the phone, so issuers started using these numbers as another barrier to fraud.\nIn transactions where the card isn't present, meaning online or on the phone, merchants often now ask for this number in addition to your credit card number and expiration date. It's not always required, but it helps ensure they're (most likely) getting payment from the legitimate cardholder.\nIf a thief is able to steal your credit card number and expiration date but doesn't have your CVV, they can't buy anything from merchants that require purchasers to provide a CVV. END
 TITLE: What Is a CVV Number on a Credit Card? CONTENT: How Your CVV Protects You From Identity Theft\n---------------------------------------------\nCVVs add another layer of identity theft protection and can help prevent unauthorized transactions. While many major retailers store your credit card account number in their databases, your CVV or CID is not allowed to be stored after the card is authorized due to credit card compliance standards.\nThis means even if identity thieves hack into a merchant's system and steal your credit card number, or somehow otherwise access your credit card number, they may not be able to use your card information if they don't have the code when attempting an online or phone purchase.\nKeep in mind that businesses are not currently required to request a CVV or CID code, and not all do. Moreover, some retailers will ask for it the first time you make a purchase to verify your identity, but then do not require it on subsequent purchases if you are logged in on their website as a customer.\nIt is also possible for identity thieves to use malicious software known as malware to steal your CVV or CID codes from retailers, or thieves could potentially obtain one from you in a phishing attempt if you're not careful. Plus, if someone steals your physical card, they will have access to it. Some financial institutions are experimenting with dynamic CVVs, or CVVs that change periodically, to make it even harder for thieves to make fraudulent purchases. END
 TITLE: What Is a CVV Number on a Credit Card? CONTENT: The Bottom Line\n---------------\nAll credit cards and debit cards now have CVVs on them as a measure to help ward off fraudulent purchases made online or by phone. And while a CVV or CID code is harder to access than your card number, it doesn't guarantee protection. They certainly help, but they aren't foolproof, so it's still important to take steps to protect yourself. It's wise to use identity theft monitoring so you'll know right away if there's any unauthorized access to your accounts. END
 TITLE: How Do Credit Cards Affect Your Credit Score? CONTENT: How Opening a Credit Card Can Impact Your Credit Score\n------------------------------------------------------\nCredit scoring models take a close look at credit card activity when determining your credit score. Because you have more discretion with how you manage credit cards than you do with other types of credit, such as a student loan or mortgage, how you handle credit card accounts helps scoring models measure what type of risk you pose to lenders.\nCredit cards can impact your credit score from the moment you apply for a card. Here are a few ways opening a credit card can affect your credit score.\n### 1\\. It adds hard inquiries to your credit file.\nLenders will inquire about your credit to determine what risk you pose as a borrower. There are two types of inquiries into your credit files, and each affects your credit differently.\nSoft inquiries don't have an impact on your credit score. Examples of soft inquiries include when you check your credit and when you are prequalified for special offers from credit issuers.\nHard inquiries are different. Lenders perform hard inquiries when they are considering whether or not to lend you money, and this can negatively affect your credit score in the short term. Applying for a new credit card will result in a hard inquiry in your credit file, which could lower your score by a few points. While a hard inquiry will remain on your report for two years, it will only affect your credit score for a few months.\n### 2\\. It may increase your credit mix.\nEven if you don't yet have a credit card, you may have other forms of credit, such as a personal loan or auto loan. These are installment loans: You borrow a set amount, pay it off in monthly installments, and once paid, the account is closed.\nCredit cards, on the other hand, are considered revolving credit. Revolving credit allows you to borrow over and over up to a set limit as long as you make at least a minimum payment (determined by the card issuer) every month. Any unpaid balance rolls over, or revolves, monthly. Interest will be charged on whatever balance remains unpaid.\nIf you only hold installment credit, getting a credit card will increase the types of credit you maintain, known as your credit mix. Having both installment and revolving credit shows lenders you can manage different types of credit accounts (assuming you make all your payments as agreed). This can help your credit score, as credit mix accounts for 10% of your FICO® Score☉ , the scoring model most commonly used by lenders.\n### 3\\. It hurts your average age of accounts—but may help your credit utilization.\nGenerally, the longer you've held credit accounts, the more it will help your credit score. This is especially the case if you've kept your accounts active, always made your payments on time and never missed a payment.\nWhen you open a new credit card, you'll bring down the average age of your credit accounts. Credit scoring models look at this average age when calculating credit scores. As part of the length of your credit history, which makes up 15% of your FICO® Score, the average age of your accounts could hurt your credit score if it decreases.\nClosing a credit card account could have a much bigger effect on length of credit than opening one, however. More on that below.\nOn the positive side, opening a new credit card account adds to your total credit limit, which can help lower your credit utilization rate, or percentage of total revolving credit you're using relative to your total credit limit. Credit utilization is the second most important factor in your FICO® Score calculation behind payment history.\nExperts recommend keeping your credit utilization under 30% to help maintain a good credit score, but the lower, the better. So, for example, if your total available credit across all your credit cards is $9,000, keep your total amount owed on those accounts under $3,000. For top credit scores, utilization should be under 7%.\nOpening a new credit card instantly adds to the amount of credit available to you, which can give your credit score a bump. More important, though, is what happens once you start using your new credit card. END
 TITLE: How Do Credit Cards Affect Your Credit Score? CONTENT: How Using Your Credit Card Can Affect Your Score\n------------------------------------------------\nHow you use and manage your credit card accounts has a significant effect on your credit score. From how much you spend on your card to how you handle payments, you can do much to help—or hurt—your credit.\nMaking all your credit card payments on time every month will go a long way toward helping improve your credit score. Credit scoring models weigh payment history more heavily than any other scoring factor—it accounts for 35% of your FICO® Score. Making at least the minimum payment by the due date every month on your credit cards will help your credit score over time. But even one late payment made more than 30 days past the account's due date can have a serious negative impact on your credit score.\nTo make sure you never miss a payment, set up autopay on your credit card accounts and have enough money in your checking account to cover the payment every month.\nWhile it's ideal to pay off your credit card balance each month to avoid interest charges, that might not always be possible. If you can't pay off your card each month, try to at least keep your credit utilization rate under 30% across your credit card accounts. Maxing out your credit cards not only hurts your credit utilization, but can make keeping up with payments difficult, especially with interest charges adding up. END
 TITLE: How Do Credit Cards Affect Your Credit Score? CONTENT: How Closing a Credit Card Can Hurt Your Credit\n----------------------------------------------\nWhen you close a credit card account, you instantly reduce the amount of credit available to you. This can negatively impact your credit score because it will likely increase your credit utilization rate.\nThat's why it's usually best to keep credit card accounts open, even ones you haven't used in a while. By leaving accounts open, you increase the amount of available credit you have in relation to the debt you owe. Consider adding a small recurring monthly payment, such as a streaming service or gym membership payment, to a card you haven't used in a while to keep the account active.\nKeep in mind that while it's usually best to keep credit card accounts open, if you are paying high annual fees for cards you're not using or are finding it too hard to resist using a card that's burning a hole in your wallet, your credit score won't necessarily take a big hit if you close an account. If you pay off your balances every month (keeping your credit utilization low) and have other cards with a long credit history, the effect may be minimal. Also, if you've paid your bill on time every month, your closed account can remain on your credit report for 10 years, so it will be a while before the closed account affects your length of credit history. END
 TITLE: How Do Credit Cards Affect Your Credit Score? CONTENT: The Bottom Line\n---------------\nCredit cards—especially how you manage them—can have a significant impact on your credit score. To get a better picture of how credit cards may be affecting your credit, monitor your credit reports and credit scores regularly. You can get a free credit report from each of the major credit bureaus (Experian, TransUnion and Equifax) once every 12 months at AnnualCreditReport.com. You can also get a free Experian credit report and FICO® Score to make sure you're on the right track or find out where you might be able to improve. END
 TITLE: 8 Things You Should Do When You Get a New Credit Card CONTENT: Understand the Terms and Fees\n-----------------------------\nYour new credit card comes with a lot of fine print. While you don't need to pore over every word, you should review some key points to make sure you understand the basics of your card's terms and fees.\nStart by checking your credit limit. This is the maximum balance you'll be allowed to hold on your credit card. Don't plan to charge up to your credit limit; instead, aim to restrict your balance to about 30% of your limit or less. Your credit utilization—your total balance as it relates to your total credit limit—is a major factor in determining your credit score. If you're using most of your available credit, your score will suffer. Aiming for below 30% utilization is a good rule of thumb, but your score will likely see bigger gains as utilization gets closer to zero.\nThe most important credit card terms and fees you should know are easy to find: Look for them at the beginning of the documentation that comes with your card in what's called a Schumer box. Here's what you'll find in a Schumer box:\n*   **Annual fee**: Cards that offer cash back, benefits and rewards may charge an annual fee. Make sure you know if your card has a fee, what that fee is and when you'll be charged for it.\n*   **Purchase APR**: The annual percentage rate (APR) is the interest rate the card issuer charges you on any balance that you carry over from month to month.\n*   **Grace period**: Most credit cards offer a grace period between the end of the billing cycle and the date your payment is due. Interest on your balance doesn't accrue until the end of that grace period, so if you pay your balance in full by the due date, you won't pay any interest. The grace period is typically about 21 days.\n*   **Minimum payment**: This is the minimum you must pay by the card's due date each month to keep your account in good standing while carrying a balance. It's almost always a good idea to pay more than your minimum balance. Find out how minimum payments are calculated.\n*   **Late payment fee**: If you don't make at least your minimum payment before your payment due date, most cards charge a late payment fee.\n*   **Returned payment fee**: If your payment is rejected for insufficient funds, the card issuer usually will charge a returned payment fee.\n*   **Penalty APR**: If you fall behind on credit card payments by 60 days or more, the card issuer may charge a penalty APR that applies not only to your outstanding balance, but also to any new purchases going forward. This rate will be higher than the normal purchase APR.\n*   **Balance transfer fee**: If you plan to transfer a balance from a high interest credit card onto a new, lower interest one, be sure you know what the balance transfer fee is. It's typically 3% to 5% of the amount you're transferring.\n*   **Balance transfer APR**: When you transfer a balance to your new card, the amount transferred may be subject to a special APR. Many cards have a promotional 0% balance transfer APR period that may allow you to pay off a transferred balance without incurring additional interest.\n*   **Cash advance fee**: If you use your credit card to get money at an ATM, this is called a cash advance. Not only will this advance show up on your next statement, you'll also be charged a fee (typically 3% to 5% of the total amount).\n*   **Cash advance APR**: Most credit cards charge a higher APR for cash advances than for purchases, and there's no grace period—interest on the balance begins accruing right away. This is a good reason to avoid taking cash advances.\n*   **Foreign transaction fees**: It's convenient to use a credit card when making purchases overseas, but first know whether your card charges a foreign transaction fee (typically 3% of the purchase amount).\n*   **Additional card\/authorized user fee**: Some cards charge an annual fee for each authorized user you add to your account.\nIf your new credit card came with any special promotional rates, check what they are and when they expire. For instance, some cards waive the annual fee the first year or offer 0% APR on balance transfers or new purchases for six, 12 or 18 months. Know when these terms expire so you don't get hit with an unpleasant surprise in your monthly statement. END
 TITLE: 8 Things You Should Do When You Get a New Credit Card CONTENT: Activate Your New Card\n----------------------\nBefore you can use your new credit card, you need to activate it. This is simple to do: Call the phone number on the card or use the link in the acceptance letter. If you're activating your card by phone, be sure to call from the same phone number you listed on your credit card application. END
 TITLE: 8 Things You Should Do When You Get a New Credit Card CONTENT: Keep Your New Card in a Safe Place\n----------------------------------\nAs soon as your card is activated, put it in a safe place to protect it from theft or loss. You should keep the documentation that came with the card so you can refer to it later on if you have questions about terms, rates or fees. END
 TITLE: 8 Things You Should Do When You Get a New Credit Card CONTENT: Learn About the Rewards\n-----------------------\nDoes your new credit card offer a rewards program? If so, explore the details of the rewards so you can take full advantage of them. For example, your card might offer rewards such as cash back or points on certain types of purchases, such as travel, dining out or gas. Sometimes rewards rotate or are offered for a limited time; for instance, you might get triple cash back on travel purchases in the summer or double points on retail purchases during the holiday shopping season. By knowing what rewards are offered when and for what types of transactions, you can use the right credit card for the right purchase.\nFind out how to redeem rewards. Some cards apply cash back to your account balance automatically, while others require you to redeem your rewards. Check whether rewards ever expire so you don't lose out on the rewards you've earned. END
 TITLE: 8 Things You Should Do When You Get a New Credit Card CONTENT: Sign Up for an Online Banking Account\n-------------------------------------\nGetting credit card statements in the mail is so old school. Sign up for an online account to easily manage your new credit card, track your balance, schedule payments and immediately get alerts of any unusual activity on your account. Many banks also offer mobile apps you can use to manage your new credit card account on the go, so it's even easier to stay on top of your spending. END
 TITLE: 8 Things You Should Do When You Get a New Credit Card CONTENT: Consider Setting Up Autopay\n---------------------------\nPayment history is the single most important factor in credit scoring; missing just one payment can have a negative effect on your credit score. To avoid the fallout from late payments, consider setting up autopay for your new credit card. Make sure you always have enough money in the bank account you use for autopay to cover your credit card bill. Using online banking or your credit card issuer's mobile app will help you keep tabs on your balances. END
 TITLE: 8 Things You Should Do When You Get a New Credit Card CONTENT: Use Your Card Responsibly\n-------------------------\nYour new credit card isn't just a convenient way to make purchases—it can also be a valuable tool to help you build a good credit score. Here's what you can do to use your new card responsibly:\n1.  **Don't charge more than you can pay off.** If you carry a balance on your card from month to month, you'll have to pay interest, which can add up quickly. If you regularly have trouble paying your balance in full, you're probably using your credit card to live beyond your means.\n2.  **Don't charge up to your credit limit on the card.** Do you want to use your card for a big purchase, like a vacation that you plan to pay off next month? If that purchase takes you too close to your credit limit, credit scoring companies may calculate your score before your next payment is due. If you must make that purchase, don't wait until the due date to pay it off: Make small payments before the due date to keep your total credit utilization low.\n3.  **Make your payments on time.** Timely payments help build a strong credit score. If you're worried about missing a payment, set up autopay. Get more tips on using a credit card responsibly. END
 TITLE: 8 Things You Should Do When You Get a New Credit Card CONTENT: Check Your Credit Score Regularly\n---------------------------------\nIf you aren't sure what your credit score is, you can check your credit score through Experian for free. Once you know your credit score, it's a good idea to monitor it on a regular basis. You'll be able to see how your credit card usage may be affecting your credit score and spot any other factors that may be dragging down your score, so you can correct them.\nYour new credit card is a powerful tool to help you manage your spending, build a credit history and improve your credit score. Take the right steps from the day you get your card to make sure you get the most out of it. END
 TITLE: Should I Cancel a Credit Card With an Annual Fee? CONTENT: How a Credit Card Annual Fee Works\n----------------------------------\nIf your credit card has an annual fee, you'll generally have to pay the fee when you first open your account and each year on the anniversary of your account opening.\nIt's important to remember that the annual fee immediately gets added to your account's balance. Even if you don't use your card for purchases, make sure you pay your bill on time to avoid getting charged a late payment fee as well.\nSometimes, card issuers will waive the annual fee for the first year, which can make it easier to sign up and try out the card. However, you'll still need to decide if you want to keep or cancel the card when your account anniversary comes around.\nGenerally, a credit card that has an annual fee will offer better rewards on purchases and cardholder perks than a card that doesn't have an annual fee. The cards with the highest fees are premium credit cards, which may come with luxurious perks, such as access to airport lounges and status in hotel or airline loyalty programs.\nSome secured credit cards also have fees, as applicants generally have no or poor credit and fewer options when choosing a card. However, that's not always true, and some of the best secured cards don't have an annual fee. END
 TITLE: Should I Cancel a Credit Card With an Annual Fee? CONTENT: When It Makes Sense to Keep a Card With an Annual Fee\n-----------------------------------------------------\nThere's generally only one reason to pay a credit card's annual fee: The benefits you receive outweigh it.\nWhen you have a cash back credit card, pulling out a calculator can help. Look at your account records to determine how much cash back you earned during the past year and compare this against the card's annual fee.\nThe card might be worth keeping if you earned more cash back than you spent on the fee. But you should also calculate how much you'd earn with a cash back card that doesn't have an annual fee. It may make sense to switch to a card that has a less generous rewards rate but no fee.\nWith other types of rewards cards, and cards with cardholder benefits like airport lounge access, the calculation isn't so straightforward. Consider how often you use these perks and whether they're worth the cost—maybe shift your perspective and estimate the cost per use and see if that changes your mind.\nAnother thing to consider is whether you'll lose your rewards if you close an account. With co-branded cards, you'll keep the points or miles you earn in the partner's loyalty program. Closing your cash back card or one that allows you to earn rewards in the issuer's program might erase your rewards.\nRead the program's terms, as you may be able to transfer points to a different card or receive a grace period during which you can redeem the rewards after closing your account. END
 TITLE: Should I Cancel a Credit Card With an Annual Fee? CONTENT: When You Might Want to Cancel the Card\n--------------------------------------\nPaying the annual fee generally isn't worth it if:\n*   The rewards you earn don't cover the annual fee.\n*   You don't use the cardholder benefits.\n*   The card's program or rules have changed, and the card isn't valuable to you anymore.\n*   When a different card offers the same, or better, rewards for a lower fee.\nIf you're considering closing your card, perhaps because you rarely use it, you could call the card issuer and ask if there are any retention offers. Sometimes, you can get the fee waived, a statement credit that offsets the fee, additional rewards or another type of offer if you pay the fee and keep your card open.\nSome card issuers also let you keep your account open and \"downgrade\" or \"product change\" to a different credit card that doesn't have an annual fee. Doing so could be a good option if you might otherwise lose rewards, or if you want to keep the account open for credit scoring purposes. END
 TITLE: Should I Cancel a Credit Card With an Annual Fee? CONTENT: How Canceling a Credit Card Affects Your Credit\n-----------------------------------------------\nClosing a credit card can immediately affect your credit scores, and may impact them again down the road.\nWhen you close your credit card, your available revolving credit will decrease and your utilization rate may increase—which could hurt your credit scores. If you have other credit cards, you may be able to offset the impact by paying down their balances or using them for fewer purchases.\nThere's also a trick if you want to keep using your credit cards but maintain a low utilization rate. If you pay down a card's balance before its statement period ends, that could decrease the balance that's reported to the credit bureaus and winds up on your credit reports.\nClosing a credit card can also impact your credit scores when the account falls off your credit reports, which will be 10 years later if your account was in good standing when you closed it. When this happens, the average age of accounts in your credit history may decrease, which could hurt your scores. END
 TITLE: Should I Cancel a Credit Card With an Annual Fee? CONTENT: How to Cancel a Credit Card the Right Way\n-----------------------------------------\nIf you think closing your credit card is the best option, here are a few things you could consider and do first:\n*   Ask the card issuer for a retention offer.\n*   See if you can downgrade to a card without an annual fee and keep your account open.\n*   Figure out what will happen to the rewards in your account.\n*   Make sure you pay your balance in full before closing your account.\n*   Determine whether your credit utilization rate will increase and have a plan for keeping it low.\nEven if the card issuer already charged you the annual fee, it might not be too late. Some card issuers will refund your fee if you close your accounts and it's been fewer than 30 or 60 days. It's best to make your decision early and avoid the potential charge by closing your account before the annual fee hits. END
 TITLE: I Applied for a Credit Card: Now What? CONTENT: Your Credit Will Be Checked\n---------------------------\nWhen you apply for a credit card, you give a credit issuer permission to access your credit reports and credit scores, and for good reason. Your credit reports and scores are how a credit card issuer can tell whether it can trust you to pay back your debts.\nIf your credit report shows a long pattern of responsible credit use, your credit scores will be high and you'll be appealing to a credit card issuer. On the other hand, if you do not have an established and positive credit history, you'll appear to be a high credit risk.\nSoon after the issuer checks your credit, it will send a notice to the three major credit bureaus (Experian, TransUnion and Equifax) that you applied for a credit card. That will result in a hard inquiry being placed in your credit file, and it will remain there for two years. As long as the hard inquiry is on your report it will be factored into your credit scores, though to a lesser degree as the months pass. END
 TITLE: I Applied for a Credit Card: Now What? CONTENT: You'll Find Out You Were Approved\n---------------------------------\nDepending on your application method and the information you provide, it can take anywhere from minutes to weeks to learn if you're approved.\nIf you applied online or over the phone, the credit issuer will begin reviewing your application information quickly, so you'll get your answer almost immediately. If you mail your application, it can take more than a week to find out if you were approved.\nDelays for all types of applications can occur if you're on the edge of qualifying. Your income or credit scores may complicate the decision, so deliberation may occur.\nIf you are approved, the issuer will send you a welcome letter and a credit card by mail. END
 TITLE: I Applied for a Credit Card: Now What? CONTENT: You May Be Denied\n-----------------\nBut what happens if a credit card issuer turns you down? If you really want this particular card, don't panic. Take action.\nThe Fair Credit Reporting Act and the Equal Credit Opportunity Act require the issuer to send you an adverse action letter that explains why you were denied. Something on your credit report may have triggered the denial (such as a collection account or a bankruptcy). Maybe your credit scores are too low, your debt too high or your income insufficient. Whatever the reason, you're entitled by law to a free copy of the credit report the lender used to make its decision. If the lender used your Experian credit report, you can get your free report by going to Experian's Report Access page.\nIf you have new, positive activity that offsets the old problematic history, consider contacting the credit card issuer and asking them to reconsider. On second review, the issuer may find you to be eligible after all. END
 TITLE: I Applied for a Credit Card: Now What? CONTENT: Your Application May Need Further Review\n----------------------------------------\nAccording to the rules in the Credit CARD Act, lenders have to assess your ability to pay any debt you can accrue with the card in order to grant the account. That means assessing what you wrote down as your income.\nIn general, credit card issuers do not verify what you listed as income by calling your employer, but it will compare the stated amount against factors such as your job title and location. If the number seems off, more time will be needed to determine whether you really qualify for the card.\nAnother delay trigger is when identity theft is suspected. For example, if the Social Security number you put down on the application isn't the same as the number on your credit report, it could be an indication of fraud. The issuer will then take extra time to review the application. END
 TITLE: I Applied for a Credit Card: Now What? CONTENT: How to Improve Your Chances of Getting Approved\n-----------------------------------------------\nIn the event you're denied for a credit card, take the necessary steps to improve your credit rating so you are more attractive to an issuer.\n*   **Review and enhance your credit report.** Remember, what is on your report is calculated into your credit scores, so you want all the data to be positive and correct. You may obtain a report from each of the three bureaus once a year for free from AnnualCreditReport.com. You're allowed to dispute information that shouldn't be on your credit report. If late payments are showing up, start paying your accounts on time, and if your balances on other credit cards are high, reduce your debt so it's well under the credit limit. Your credit utilization ratio—the amount of debt you're using compared with your credit limit—is an important factor in your credit score. The lower the better, but experts recommend keeping it under 30% to avoid negatively affecting your score.\n*   **Secure your income.** The income you list on your application will be reviewed, so make sure it's accurate. Your income sources may be from both your and your partner's job, any money you receive as gifts, trust fund and retirement plan distributions, and Social Security income. If you are attending college and receive scholarships and grants, you may list what you bring in from those sources, but not what you receive from student loans.\n*   **Pursue the right credit card for you.** To avoid unnecessary denials (which can hurt your credit scores), only try for a credit card that matches your credit rating. There are plenty of cards from which to choose, so read the qualification criteria for each one that sounds appealing. People with high credit scores tend to go for cards with great cash back or points-based benefits. People with less-than-perfect credit have more limited options, but still can find cards that have valuable rewards and good terms. A secured credit card might be right if you're considered unscoreable or have very low scores, since the credit lines are collateralized by cash you put down in a deposit account.\nNow that you know what happens after you apply for a credit card, you can take action to make sure the process works in your favor. Checking your credit reports once a year is great, but doing so on a more regular basis is better. Pull your Experian credit report for free to see what kind of shape your credit is in. This way you'll have a better idea if you qualify for the credit card of your dreams. END
 TITLE: The Simple Guide to Using Credit Cards CONTENT: How Credit Cards Work\n---------------------\nA credit card is a physical symbol of a revolving credit line that a bank or other financial institution grants to you. It's a form of loan, except that instead of taking all the money out at once and repaying it in equal installments, you can borrow just what you need, then pay accordingly.\nIt all begins when you apply for a credit card. After submitting the application, the issuer will check your credit history and credit scores to determine how much of a credit risk you are. It will also assess your income and, usually, a rundown of your basic household expenses. If you qualify, the issuer will notify you of the good news. At that stage you'll learn what your credit limit is and the interest rate that's tied to the account.\nSoon you'll receive a credit card, which will be imprinted with your name, account number, expiration date and a security code—a three or four digit CVV (card verification value). It will also display a symbol from whichever payment network the card uses, such as Visa or Mastercard. Your card will also have a magnetic strip and a computer chip so you can pay at a register or mobile point of sale system (such as Square). The issuer's customer service numbers will be listed and there will be a box for your signature.\nWhen you activate the account by calling the number on the back of the card or using the link written on the acceptance letter, you're ready to charge. Any business that accepts credit cards, in person or online, will let you pay with it, but if you want a cash advance, you'll make the withdrawal at an ATM or by going into a bank branch.\nYou may charge or extract any amount up to the card's credit limit. The statement will arrive in about 30 days, and on it you will see your account activity, the ending balance, minimum requested payment (typically 2% to 3% of the balance) and the payment due date. If you send at least the minimum by the date listed, the issuer will consider the account in good standing. However, the remaining debt will be carried over to the next month, and interest will be applied.\nAs an example, let's say you have a credit card with a $2,000 limit and an 18.9% annual percentage rate (APR). Let's also say you charge it up to the limit, resulting in a minimum payment of $60. If you only send that minimum amount, $31.50 in interest would be assessed as finance fees. That means $28.50 would be applied to the principal, which would also be your current available credit. If you paid the total amount owed, though, no fees would be applied and the $2,000 would once again be at your disposal.\nBe aware that the APR will be high if you're just starting out in the world of credit, or if you have had credit problems in the past. APRs on cash advances are often higher than for purchases, and unlike with purchases, there is no interest-free grace period, so it starts accumulating when you withdraw funds. END
 TITLE: The Simple Guide to Using Credit Cards CONTENT: How to Use Your Credit Card Responsibly\n---------------------------------------\nIn the beginning, responsible credit card use can seem complicated, but it really isn't. Just follow this three-step plan:\n1.  **Only charge what you can (and will) repay in full.** Although you can pay over time, it's best to carry over no debt. This way you'll avoid interest charges, which can rack up before you know it. Interest on credit cards compounds, which means that it's assessed on balances that have already grown larger with the previous month's interest charges. Another benefit of maintaining a zero balance is that you won't have to face another debt payment the next month and you'll be spending within your means instead of beginning to accumulate debt.\n2.  **Don't take it to the limit.** Having access to a substantial amount of money is wonderful, but if you charge near or up to the limit, a credit scoring company may calculate your score before you make a payment. It will then appear as though you're highly indebted even if you planned to pay off the balance by the due date. When charging large sums, make several payments before the bill comes due (if you can't pay it in full immediately) to pay it down as quickly as possible.\n3.  **Pay on time.** Send every payment by or before the due date. Timely payments are listed on your credit reports, and this helps your credit scores. Alternatively, payments that are 30 days or more late will ding your scores, so it's important to always pay your bills on time. To simplify this task, set up automatic bill pay with your bank.\nKeep a close watch on your account by checking your account activity often and carefully. There's no need to wait for the statement to be issued at the end of the billing period. Check it daily or weekly on your computer or via the issuer's app on your mobile device. You'll prevent balance surprises, you can make a supplemental payment, and you will catch any problems early. END
 TITLE: The Simple Guide to Using Credit Cards CONTENT: When to Use a Credit Card\n-------------------------\nAlthough you have the option to use your credit card for all types of charges, it's especially wise to use it for online and expensive purchases. That's because credit cards come with strong consumer protection laws. The Fair Credit Reporting Act (FCRA), for instance, gives you the right to dispute charges for items you bought but never received, were not what you ordered, or were damaged.\nAnother advantage of credit cards is fraud protection. If someone uses your debit card, the money in your checking or savings account can disappear. The bank will likely eventually reimburse you, but there could be a delay. Conversely, if a thief charged up your credit card, typically none of your personal funds will be lost.\nIn most circumstances, the credit card issuer will catch the fraudulent activity, but if it doesn't, just contact its fraud department and report the matter. The issuer will remove those charges and send you a new card with fresh account numbers. In fact, the FCRA gives you 60 days from when you receive your bill to dispute incorrect or fraudulent charges.\nAnother great reason to use a credit card is to reap the generous rewards many cards offer. Rewards cards come in a few basic varieties:\n*   _Cash back cards_ allow you to earn back a percentage of the money you charge as a rebate. Depending on the card and program, you can earn upwards of 1% from each purchase you make.\n*   _Point-based cards_ give you the opportunity to accrue points with every charge. The points can then be traded in for things such as airfare, products, services and gift cards.\n*   _Travel cards_ are similar to point-based cards, but the focus is on airline miles or hotel points. When you have enough miles or points, you can redeem them for airfare, hotel stays or upgrades.\nMost rewards cards offer introductory bonuses of cash, points or miles that will be yours after meeting the minimum spend, which is typically a few thousand dollars within the first few months of opening the account. You'll profit from these credit cards when you charge liberally and maintain a zero balance, paying off the bill each month (otherwise, finance fees will erode the value of the rewards). Some rewards cards offer increased cash, points or miles when you spend on rotating categories or at certain stores.\nDepending on the rewards card, you may get additional perks, such as concierge services, waived checked baggage fees, free entry into airport lounges and extra insurance products. Keep in mind that the better the benefits, the more demanding the qualifications. Some rewards cards charge an annual fee, though you'll come out ahead if you use the card right and maximize the perks. END
 TITLE: The Simple Guide to Using Credit Cards CONTENT: How Credit Cards Will Impact Your Credit\n----------------------------------------\nAs soon as the account is granted, the credit card issuer will send your account activity to the credit reporting agencies. That information will be factored into your credit scores. The primary data that will show up includes the date the card was issued and the credit line. It will also indicate your balance and payment pattern. All of this is crucial to a credit score. The FICO® Score☉ , for instance, ranges from 300 to 850, and higher numbers indicate less credit risk. It's based on five factors, with some being weightier than others:\n**Payment history (35%)**: A pattern of on-time credit card payments will definitely help your scores rise.  \n**Credit utilization (30%)**: The amount of revolving credit you're using divided by the total amount of revolving credit you have available is called your credit utilization ratio. Maintaining no or little debt is best, but if you must maintain a balance, keep it below 30% of your available credit to avoid negatively affecting your credit score.  \n**Credit history (15%)**: Having a long relationship with a credit card issuer is beneficial. You can't speed up the clock, but you can start charging soon, and keep older accounts active.  \n**Credit mix (10%)**: One credit card is a fine start, but a couple more plus other credit products such as an auto loan or personal loan will give your scores another push upward—as long as you make your payments on time and as agreed each month.  \n**Inquiries (10%)**: When you submit a credit card application, you give permission for the issuer to check your credit, resulting in a hard inquiry on your credit report. A slew of such inquiries on different types of credit in a short span of time can lower your score, so apply prudently. END
 TITLE: The Simple Guide to Using Credit Cards CONTENT: What to Avoid When Using a Credit Card\n--------------------------------------\nThere are a number of credit card use \"nevers\" to be aware of. Do not use the card:\n*   **Just for the rewards.** It's easy to get caught up in the cash, points or miles game, but it can lead to overspending and debt.\n*   **As an income supplement.** Available credit isn't an extra paycheck. If you lean on credit cards to pay for the things you can't afford, your balances will swell and troubles will worsen.\n*   **As a savings vehicle.** If you want something special, save for it. Then you can charge the expense and pay the bill with the money you've set aside.\n*   **When you can't afford to pay your monthly bill.** A missed payment will remain listed on your credit report for seven years and ding your credit rating.\n*   **For mid- or long-term financing.** You may want to spread the payments of an especially costly purchase over time, but don't let it linger for over a year. Charge a $2,000 laptop at 18.9% APR, and the fees would be $112 if you paid it off in six months; stretch it out for six years, and the fees would be $1,358.\n*   **Communally.** Never share your account with a friend or family member. The credit card was granted to you, so you're the owner. If you give someone else permission to charge with it, you are liable for the payment and resulting debt. END
 TITLE: The Simple Guide to Using Credit Cards CONTENT: Credit Where Credit's Due\n-------------------------\nAs you can see, using a credit card in a way that will enhance your life is not just possible, it's also easy as long as you stick to these tried-and-true rules. When you do, your credit scores should improve until they're at the point where you qualify for the premium products that come with top rewards. To make sure you're on the right path, monitor your credit report monthly with Experian's CreditWorks™ Basic plan. It's free, and you'll always know where you stand. END
 TITLE: The Worst Credit Card Charges You Can Make CONTENT: Impulse Items\n-------------\nWhen you see something compelling that's outside your normal budget, you may automatically reach for your credit card. But before you do, ask yourself these questions: Is it necessary? Do I need it now? Can I afford to pay the bill in full when it's due? If any of your answers are \"no,\" slide the card back in your wallet. Odds are the item will still be ready for purchase at a later date, so if you truly want it, find a way to make it happen that doesn't involve you getting into debt. END
 TITLE: The Worst Credit Card Charges You Can Make CONTENT: Another Credit Card's Payment\n-----------------------------\nIf you're unable to send the minimum payment on one credit card but have an available credit line on another card, you may be tempted to tap into those funds. It's called \"robbing Peter to pay Paul.\" The relief you'll feel will be short-lived, though, as the same request for payment will come up again next month, but your balance will have grown. If you can't identify another way to satisfy the payment, contact the credit card issuer immediately and ask for assistance. END
 TITLE: The Worst Credit Card Charges You Can Make CONTENT: A Pal's Purchases\n-----------------\nYour credit card's line of credit is for you. If you help a friend or family member pay for something they can't afford with your card, you're putting your own finances and credit history at risk. If that person doesn't repay you as agreed, you will be responsible for the payment. In the event you can't meet it, debt will escalate, late payments will be noted on your credit report, and your credit rating will sink. END
 TITLE: The Worst Credit Card Charges You Can Make CONTENT: A Large Group Bill\n------------------\nIt can be a smart strategy to charge a bunch of meals or tickets to your rewards card. You'll get all the points, miles or cash back, and when your friends give you their portion of the purchase, you'll stay in the black and make a profit (in rewards). Unfortunately, it can be easy to spend what the others give you instead of sending it to your credit card account. When that happens, you'll be stuck with the massive bill. Unless you're certain that you will apply every dollar each member of the group gives you to your bill, charge your part only. END
 TITLE: The Worst Credit Card Charges You Can Make CONTENT: Taxes\n-----\nWhile you can't pay your income tax bill directly to the IRS with a credit card, you can use a third-party payment service—for a price. The convenience fees these companies charge are nearly 2% of the amount you pay, and can be even higher if you use a tax preparation software's system. These fees will not just increase your liability, but if you spread the debt out over many months, the accumulated interest will be expensive. For example, the fee for an $8,000 bill might be $160. And if your credit card has an 18% APR and it takes you a year to repay, you'll pay nearly $800 in interest. It's best to find other ways to pay your debt, such as using savings or contacting the IRS to work out a solution. END
 TITLE: The Worst Credit Card Charges You Can Make CONTENT: Guilt Gifts\n-----------\nThere aren't enough presents under the tree, you missed too many of your child's soccer games, or you haven't picked up the tab for a generous friend in ages. These are common circumstances where pulling out your credit card can feel like it's the right thing to do when it isn't. Feeling guilty is not a good reason to get yourself into credit card debt. Think of another way to express your love. END
 TITLE: The Worst Credit Card Charges You Can Make CONTENT: Legal Fees\n----------\nMany lawyers accept payments by credit card, but exercise extreme caution when doing so. Their hourly rates are often in the hundreds of dollars, so you could hit your credit limit within a short period of time. If you must get legal representation but money is tight, you're better off with a low rate personal loan that comes with fixed and affordable payments. As long as you send the payments on time, you will protect your credit history and scores. END
 TITLE: The Worst Credit Card Charges You Can Make CONTENT: Bad Bets\n--------\nNever gamble with a cash advance from a credit card. Not only will the interest start to build right away (and typically at a higher rate than you pay on purchases), but you might return to the ATM to extract—and possibly lose—even more money. Stay far away from Las Vegas or any other gambling center if this scenario is even a remote possibility. And in general, avoid cash advances if at all possible so you won't be stuck with extra fees, higher interest and potentially growing debt that come with them. END
 TITLE: The Worst Credit Card Charges You Can Make CONTENT: A Round of Drinks for All Your \"Friends\"\n----------------------------------------\nEvery transaction you make with your credit card should be done when your cognitive skills are sharp. When they are, you can weigh whether or not what you charge is needed and within your means. But when you're a few drinks in, rational thought can drop precipitously. Suddenly you're instructing the bartender to add 20 shots of tequila to your card. You'll be everyone's best friend that night, but the next morning you'll wake up to an agonizing balance that can rival your hangover. Who were those people again?\nRemember, credit cards aren't toys; they're serious financial tools. Use them to your advantage by only charging when you're sure the purchases are a good idea, and when there will be enough cash in your checking account to cover the balance due. END
 TITLE: What Is a Payment Protection Plan? CONTENT: How Do Payment Protection Plans Work?\n-------------------------------------\nPayment protection, sometimes called debt protection, is meant to offer peace of mind by providing the ability to pause monthly payments on your credit card balance or loan for a certain time period if you experience certain hardships. Depending on the plan, you may not owe those payments at all during that time or you can have some of the balance forgiven.\nWhile this may sound like a great deal, payment protection plans typically carry fees that vary based on your balance, and the criteria for getting them can be strict. Additionally, these plans are now harder to find; following a 2011 Government Accountability Office report that criticized their fees and numerous consumer complaints about the products, many credit card issuers stopped offering payment protection services. END
 TITLE: What Is a Payment Protection Plan? CONTENT: Downsides of a Payment Protection Plan\n--------------------------------------\nPayment protection plans can help some consumers, but they're not for everyone. Keep these potential downsides in mind before you sign up for one:\n*   Many payment plans have conditions and exclusions. For example, it might not be available in your state, or the specific hardship you want protection from might not be covered by your lender. For example, payment protection plans often won't protect you if you lose government benefits such as Social Security or pensions.\n*   The payment plans are extra products you have to add on; you can't get the benefits if you don't add on and pay for this extra protection. This also means you may pay for this service and never end up needing it or even be able to qualify for using it.\n*   Disability and life insurance plans may do a better job of covering your needs and protecting you financially. END
 TITLE: What Is a Payment Protection Plan? CONTENT: When Are You Covered Under a Payment Protection Plan?\n-----------------------------------------------------\nIf you're curious about payment protection plan coverage, you'll first need to find out whether any of your lenders even offer a plan; call them to find out and ask about the rules, fees and other details.\nTo qualify for a payment protection plan, you must meet certain criteria set out by your issuer or lender. For example, some may require you to have been employed for at least a few months prior to enrolling, or you might not be covered for job loss if you were self-employed, worked for a family member, had seasonal work or had your hours reduced. You may also be precluded from signing up for protection if your disability took place too recently relative to when your plan would kick in. You may be expected to produce certain documentation to prove your disability, job loss or other condition. Finally, it's important to understand the caps on your benefits, such as how long they last.\nWhen it comes to using your benefits, each creditor or lender will have different requirements for what types of events allow you to do so. For example, Discover offers two options: a short-term plan and long-term plan, and each has its own criteria. Under the long-term plan, you can qualify for up to 24 months of debt protection if you face a major hardship such as hospitalization, death of a spouse or immediate family member, job loss or disability. The short-term option covers you for three months for less drastic life events, such as marriage, moving, childbirth, adoption or divorce. END
 TITLE: What Is a Payment Protection Plan? CONTENT: Payment Protection Plan Alternatives\n------------------------------------\nWhile these plans can be good for those who don't mind the fees and are able to qualify, you may be better off finding other ways to protect yourself financially. Here are a few options:\n*   **Focus on building up an emergency fund.** Make a habit of setting aside a little money each month into an emergency fund. Doing this can help you prepare for the unexpected and minimize the financial damage it'll cause. Your emergency fund should have enough in it to cover at least a few months' worth of expenses until you're able to get back on your feet.\n*   **Consider disability and life insurance.** These financial products exist to help you or your family financially after an accident, medical disability or death. While insurance may be more expensive than a payment protection plan, it offers protection far beyond just covering your credit card or loan balance. It may also be more reliable and easier to access.\n*   **Reach out to your lender.** If you're struggling to make your credit card or loan payments, whether you have a payment protection plan or not, call as soon as you can to let them know what's happening and see if they're willing to work with you. It's possible they'll give you some short-term leniency. END
 TITLE: What Is a Payment Protection Plan? CONTENT: Consider Your Options\n---------------------\nMissing a payment may be unavoidable when you're in a bind, but there are steps you can take to minimize the toll it can take on your finances and credit. Continue making at least your minimum payments to avoid late or missed payments, and reach out to your lenders as quickly as possible as they may be able to offer you help. Haven't checked your credit in a while? Check your free credit report on Experian to get an overview of where things currently stand. END
 TITLE: Can You Use a Credit Card to Pay for a Money Order? CONTENT: What Is a Money Order?\n----------------------\nA money order is an alternative to checks or cash when you need to make a secure payment and can't or don't want to use your bank's online payment options or an online payment app such as Venmo or PayPal.\nYou must pay for a money order upfront. Unlike a check, which can bounce, this makes it a guaranteed payment to the recipient and is why some people and businesses prefer to use them.\nMoney orders must be made out to a specific person or business and can only be cashed by that recipient. Because cashing a money order requires presenting ID in person, you typically don't have to worry that a thief will get their hands on your funds.\nMoney orders often have a limit of $1,000, although some issuers have smaller limits. If the amount you need to send is larger than that, you'll have to buy more money orders. For instance, if you wanted to buy $3,000 in money orders from a location that limits money orders to $500 each, you'd have to buy six money orders. There may also be limits on the total dollar value of money orders you can buy in one day. For example, the U.S. Postal Service limits you to $10,000 worth of money orders per day. END
 TITLE: Can You Use a Credit Card to Pay for a Money Order? CONTENT: Where Can I Buy a Money Order?\n------------------------------\nMoney orders are available from a wide range of places, including banks and credit unions, check-cashing or payday loan businesses, grocery stores, convenience stores and the post office. Members of the military can also purchase them at military facilities.\nYou'll pay a small issuing fee based on the money order amount. Fees vary depending on the location issuing the money order; they're generally a few dollars at most. For instance, at the post office, issuing fees range from $1.25 to $1.75; at Walmart, the maximum fee is $0.88. END
 TITLE: Can You Use a Credit Card to Pay for a Money Order? CONTENT: How Do You Buy a Money Order With a Credit Card?\n------------------------------------------------\nIn most cases, you'll need to buy a money order with cash or a debit card. Because issuers want the money in hand before they issue the money order, you cannot pay with a personal check. The only places that let you buy a money order with a credit card are 7-Eleven stores and Western Union.\nIf you plan to charge a money order, be aware that your credit card company may consider a money order purchase to be a cash advance, which has some significant downsides. You'll be charged more interest on a cash advance than you would for a regular purchase—sometimes a lot more. While credit card purchases give you a grace period before interest on the purchase begins to accrue, interest on cash advances usually starts to accrue immediately. On top of these costs, your credit card issuer may charge a fee of $20 or more for the cash advance.\nTaking a cash advance can also hurt your credit score if it raises your credit utilization ratio to more than 30%. If the credit card you use is already carrying a balance, the issuer may put your future payments toward the purchase balance before putting them toward the more expensive cash advance balance. This can make it harder to pay down your balance.\nTo protect yourself from unexpected charges, read your cardholder agreement carefully or check with your credit card issuer to see if using a credit card to buy a money order is considered a cash advance. END
 TITLE: Can You Use a Credit Card to Pay for a Money Order? CONTENT: How Do You Fill Out a Money Order?\n----------------------------------\nMoney orders are easy to fill out, but it's important to fill out the money order correctly. Otherwise, the recipient might not be able to cash it.\nYou'll need to write on the money order the name and address of the person or business receiving it. It's a good idea to double-check the name spelling first because the money order will be checked against the recipient's ID when they try to cash it.\nSign the money order and be sure to get a receipt for it. You must have a receipt if you want to cancel the money order or if it goes missing and you need to prove that you purchased it. END
 TITLE: Can You Use a Credit Card to Pay for a Money Order? CONTENT: How Do You Cash a Money Order?\n------------------------------\nTo cash a money order, take it to a bank, credit union or check cashing store. You can also take it to another location of the organization that issued it, such as a post office, grocery store or convenience store. No matter where you cash it, you'll be asked to show identification and sign the back of the money order, just as you would when cashing or depositing a check. END
 TITLE: Can You Use a Credit Card to Pay for a Money Order? CONTENT: How to Avoid Money Order Scams\n------------------------------\nLegitimate money orders are a secure way to transfer funds. Unfortunately, scam artists sometimes use forged money orders to commit fraud. It can take a week or more after you deposit a fake money order for your bank or credit union to uncover the sham—at which point they'll immediately take the funds out of your account. That could be a problem if you've already spent that money.\nTo protect yourself, be on the alert for these common money order scams:\n*   **Online shopping scam**: An online seller insists you use a money order to pay for merchandise. You send the money order, but they never send you the product. If you're using a money order to make a purchase, it's best to conduct the transaction in person. That way, you can get the product in hand before you give the seller the money order.\n*   **Bogus buyer**: A thief sends you a fake money order to pay for a product you're selling. By the time you realize the money order is fake, you've already shipped the merchandise. If customers ask you to ship products to a private P.O. box, it's often a warning sign of this scam.\n*   **Bogus buyer's remorse**: A scammer buys something from you with a fake money order. You cash the money order and prepare to send them the goods. Before you do, however, they ask to cancel the order and get a refund. They might offer to let you keep part of the payment for your trouble but send them back the rest of the money order. When it's discovered the payment was fraudulent, the check-casher may come after you for fees as well as a return of the fraudulently issued funds.\n*   **Rental reversal**: The scam artist sends a forged money order to pay for a non-refundable security deposit, plus some or all of the charge, for a bed-and-breakfast or vacation rental stay. They quickly cancel the reservation and request a refund. You deposit the money order, keep the security deposit and send them the rest of the money before it's discovered the money order is a fraud.\n*   **Overpayment ploy**: Scammers may send you a money order for more than the price of the merchandise you're selling. They then claim it was an error and ask for the overage to be returned.\n*   **Deposit assistance**: A stranger claims they don't have a bank account, so they need you to deposit a money order for them and then send them the funds.\nTo prevent fraud, the FTC recommends you never send a money order to someone you don't know, people who say they only accept money orders or people who ask you to keep the transaction a secret. Here are a few other steps to help you avoid money order scams:\n*   **Verify funds.** Before you cash a money order, contact the issuer listed on the back of the money order to confirm that it's genuine.\n*   **Look for signs of forgery.** These can be hard for a novice to spot, but you can take the money order to a location of the issuer and ask them to inspect it.\n*   **Check for tampering.** Does the amount look like it's been erased or added to? If so, it could be a scam.\n*   **Don't use funds from a money order right away.** Wait a week or two after depositing a money order to use the money or issue any refund to the sender.\n*   **Be wary of pressure tactics.** Scammers typically rush you to deposit the money order or send them a refund right away. They might play on your sympathy by claiming they need the funds for an operation. Some may use scare tactics such as threatening to sue you or ruin your online reputation. When it comes to money orders, be suspicious of anyone who insists you act immediately. END
 TITLE: How Credit Cards Work CONTENT: What Is a Credit Card?\n----------------------\nA credit card is what's called revolving credit, which means you can borrow and repay using the same card repeatedly. When you make a purchase with a credit card, you're not agreeing to pay it off on any set timeline or term. Your credit card payments can vary as long as you're meeting a certain minimum monthly payment amount set by the company that issued your credit card.\nRevolving credit works very differently from installment loans, such as student, auto and home loans. With installment loans, you borrow a certain amount and repay it in fixed monthly installments. Once the term ends and the money is repaid, the loan is done—you can't borrow any more on the same loan.\nBecause credit cards let you borrow on an ongoing basis, they provide more flexibility than installment loans. But because credit card repayment is less rigid, it's possible to get in over your head.\nBeyond using credit as a means to borrow money, there are plenty of reasons to carry a credit card:\n*   **Build credit**: Establishing a responsible repayment history with a credit card is one of the easiest ways to build and improve your credit score. A higher credit score can help you secure better terms on future borrowing, such as a mortgage.\n*   **Earn rewards**: You can use a credit card to earn rewards on the purchases you're already making. Many cards provide cash back on purchases or discounts on travel.\n*   **Additional protections**: Credit cards offer better fraud protection than debit cards. Many credit cards also come with benefits such as purchase protection, price protection and extended warranties.\n*   **Track spending**: If you like to budget or just keep a close eye on your purchases, using a credit card for all your spending can make it easier to see all your transactions in one place. Some issuers let you sort spending by categories.\nCredit cards have numerous benefits, but won't improve your financial health if they're not used properly. Make sure you're familiar with credit card basics before you apply. END
 TITLE: How Credit Cards Work CONTENT: How Do Credit Card Balances and Payments Work?\n----------------------------------------------\nWhen you hear the phrase \"credit card balance,\" it can mean one of two things:\n*   **Current balance**: This indicates the current tally of charges on your card (plus any interest and fees). It's how much you owe on your card in total at any given time.\n*   **Statement balance**: This is how much money you owe at the end of each billing cycle. Credit cards only require you to make a minimum monthly payment; you are not required to pay the entire balance.\nCredit cards are billed on a monthly cycle. If you make purchases on the card and pay them off in full by your due date, you won't pay any interest on those transactions. However, if you can't pay them all off and carry a balance, the remaining balance rolls over and begins to accrue interest.\nWhen your monthly bill is due, you are only required to make a minimum payment in order to keep your account in good standing. However, you should try to pay off as much of your balance as you can; otherwise, interest fees can add up and make it harder to get out of debt.\nKeep in mind that you can also make a payment toward your credit card at any time—not just when your statement balance comes due. If paying small amounts over time works better for you than making one larger payment once a month, consider doing that instead.\nIf you're worried you may forget to pay, setting up an automatic payment for at least your minimum payment will help make sure you don't end up with a late payment in your credit report. Alerts can help too, whether they remind you to pay your bill or to prevent you from overspending by letting you know your balance has reached a certain amount. END
 TITLE: How Credit Cards Work CONTENT: How Does Credit Card Interest Work?\n-----------------------------------\nYour credit card's annual percentage rate (APR) indicates how much interest you'll pay on revolving balances—in other words, the balance you carry from month to month if you can't pay it off in full.\nCredit cards have a grace period in between the statement closing date and the due date, and if you pay off your statement balance in full during this time, you won't owe any interest. The length of the grace period varies by issuer, but it's typically around 21 days.\nIf you do carry a balance, you'll have to pay interest. Credit card interest charges are calculated based on your average daily balance, the number of days in your billing cycle and the percentage rate the card issuer applies to the balance.\nBe aware that some cards have different APRs on purchases and balance transfers. Additionally, some cards begin with 0% APR for a set time period and then later switch to a standard APR—this is called an introductory or promotional rate. APRs can be fixed or variable.\nIn addition to repaying your purchases and paying interest fees, you may at some point owe other credit card fees in your bill. For example, if your card has an annual fee, it will be added to your statement balance once a year. You will also typically face fees for returned payments, late payments, exceeding your credit limit as well as interest charges on cash advance and balance transfers. Some credit cards charge foreign transaction fees on purchases made in other countries or in other currencies. END
 TITLE: How Credit Cards Work CONTENT: How Do Credit Cards Affect Your Credit Score?\n---------------------------------------------\nCredit cards affect your credit score significantly, though it's up to you to make sure they're doing so in a positive way. Your payment history is the single most important factor in your credit score, and thus making all your payments on time can improve your score over time. Making late payments, or missing them altogether, can hurt your score. Here are a few other ways credit cards can affect your credit score:\n*   **Credit utilization ratio**: This measures how much of your available credit you're currently using and is the second biggest factor in your credit score. Carrying a balance on a credit card that brings it close to its limit can be a red flag to lenders, and reflect negatively in your credit scores. Find a card's utilization ratio by dividing its balance by its limit and converting to a percentage by multiplying by 100. Credit scoring models consider credit utilization on a per-card as well as a total basis. A ratio above 30% can start to harm your scores, but the lower, the better.\n*   **Hard inquiries**: Whenever you apply for a new form of credit, such as a credit card, something called a hard inquiry is added to your credit report. These tend to hurt credit scores, but their impact shouldn't be huge or long-lasting. Many hard inquiries over a short span of time, however, can start to drag down your credit scores more significantly.\n*   **Credit mix**: Credit scoring models also consider your experience with diverse forms of borrowing. Having a mix of installment loans and revolving credit accounts in your name can make a positive impact on your scores, but it's not wise to take on new debt solely to address this factor.\n*   **Age of accounts**: The more experienced you are with borrowing, the more it can benefit your credit score. If you open a credit card account and use it wisely over several years, that longevity can help your credit score rise. END
 TITLE: How Credit Cards Work CONTENT: How Do You Get a Credit Card?\n-----------------------------\nCredit cards come in many different forms, so you'll need to choose a type of credit card you want to apply for. There's a lot of variety among the credit cards on the market, but here are a few types you should familiarize yourself with:\n*   **Secured credit cards**: If you're new to the world of credit, a secured card can help you establish yourself as a borrower. You'll have to put down a security deposit, which becomes the amount you can borrow up to. Because the card is secured with collateral, credit card issuers are usually more open about granting these to new borrowers. Once you've used the card responsibly for six or more months, you may be eligible to move up to a traditional unsecured credit card and get your deposit back. Secured cards may come with fees charged on regular intervals, such as annual fees.\n*   **Unsecured credit cards**: An unsecured card doesn't charge a security deposit but may be harder to qualify for. Unsecured cards don't require collateral, but may charge fees to maintain your account.\n*   **Student credit cards**: College students may be best served by a student credit card, which is geared toward those with no credit history.\n*   **Store credit cards**: You may have been offered a card like this at the checkout counter of a major retailer. These cards can help you build your credit just like any other card, but you may be limited to using it at only certain businesses.\nOnce you've decided what type of credit card you'd like to have in your wallet, it's time to apply for a credit card. If you know which card you want, or which bank or issuer you'd prefer to work with, you can usually apply online directly. If you're not sure which card you want, or you're unsure what you could qualify for, you can try Experian's free CreditMatch™ tool to get personalized credit card offers based on your credit profile. Once you select one, you'll apply with the credit card issuer.\nTo apply, you'll have to provide some basic personal and financial information, such as your income and your Social Security number. In some cases, you'll receive an immediate decision. You may, however, have to wait for your application to be reviewed before you find out if you're approved or declined. If you are declined due to reasons related to your credit, the issuer has to explain why. END
 TITLE: How Credit Cards Work CONTENT: How to Use Your Credit Card Responsibly\n---------------------------------------\nOnce you've received your card, make sure you know how to use it responsibly so you can build and maintain solid credit.\nIt's easy to rack up charges on a credit card, but don't forget to repay them along with any interest they may have accrued. Make sure you only charge what you can repay, ideally in full.\nPaying your credit card bill on time every month will make a big positive impact on your credit, as will keeping your credit utilization low. Make sure you don't max out your card, and avoid carrying a balance larger than 30% of your credit limit. END
 TITLE: Credit Card Balance and Statement Balance: What’s the Difference? CONTENT: Each credit card has a billing cycle, which is typically about 30 days. (You can find details about your billing cycle in your cardholder agreement.) The statement balance represents an overview of all credits and debits on your credit card account within a specific billing cycle. In addition to any purchases and payments you made during that time period, the statement balance also includes any fees, interest or penalties charged by the credit card company and any credits that have been issued (such as when you return a purchase). The statement balance is generated on the last day of the billing cycle—the _closing date_.\nIf you want to avoid being charged interest, you'll need to pay the statement balance in full each month. Otherwise, the part of the statement balance that you don't pay will carry over to the next month and will begin to accrue interest. If you can't pay off the statement balance in full, be sure to at least make the minimum payment so you can avoid late payment fees and their negative effect on your credit score. END
 TITLE: Credit Card Balance and Statement Balance: What’s the Difference? CONTENT: What Does Current Balance Mean?\n-------------------------------\nThe current balance (also called the _credit card balance_) reflects the current amount of all charges and payments made to your account up to that day. Just like the statement balance, it includes fees, interest, penalties and credits, as well as any purchases or payments you've made.\nIf you use your credit card regularly, your current balance will often be different from your statement balance. Why? While your statement balance is a snapshot of what you owed at a particular moment in time, your current balance is constantly changing to show a running tally of what you owe right now.\nSuppose your March billing cycle ends March 15. During that billing period, you used your credit card to make $500 in purchases. The billing statement generated on March 15 shows a statement balance of $500, representing those purchases. However, if you make a $100 purchase with the same credit card on March 16 and then check your account online, you'll see that $100 purchase reflected in the current balance with your statement balance remaining the same. END
 TITLE: Credit Card Balance and Statement Balance: What’s the Difference? CONTENT: How Do Your Balances Affect Your Credit?\n----------------------------------------\nBoth your current balance and your statement balance affect your credit score. Each month, typically at the end of the billing cycle, credit card companies report your credit card usage to the three major credit bureaus—Experian, TransUnion and Equifax. The credit bureaus use your balance information as well as the total amount of revolving credit available to you to calculate your credit utilization ratio and determine what percentage of your available credit you are actually using.\nTo figure out what your credit utilization ratio is, simply divide the current balance on your credit card by the spending limit for that credit card. For instance, if you have a balance of $500 on a card that has a $1,000 credit limit, you're using 50% of your available credit on that card.\nYour credit utilization ratio is the second most important factor in your credit score. The lower your credit utilization ratio is, the better its effect on your credit score will be. If you're using too much credit, credit bureaus may take this as a sign that you're in financial trouble. Under the FICO® Score☉ and VantageScore® credit scoring models, a ratio of 30% or higher can negatively affect your credit score.\nPaying your statement balance in full each month can help you minimize your credit utilization ratio. However, if you pay the minimum payment on your credit card and let the rest of the statement balance carry over to the next month, your credit utilization ratio will increase. If the ratio goes above 30%, it may start to hurt your credit score. END
 TITLE: Credit Card Balance and Statement Balance: What’s the Difference? CONTENT: When Do You Get Charged Interest?\n---------------------------------\nAs long as you pay off your statement balance in full by the due date each month, you won't be charged any additional interest. However, if you don't pay the full statement balance, any remaining balance rolls over to your current balance and begins to accrue interest going forward. If you can't pay your statement balance in full to avoid interest charges, you should at least make the minimum payment. This will avoid late fees and the potential damage to your credit score that comes from missing a payment.\nA good way to avoid missing payments on your credit cards is to set up automatic bill pay. This gives the credit card issuer permission to withdraw the statement balance from a certain bank account each month. You can set up automatic payments to be made on a date that's convenient for you, such as right after you get paid, to ensure that you always have enough money in your account to cover the credit card bill.\nWhat if you're not sure you can afford to pay your statement balance in full each month? Perhaps your income fluctuates from month to month, so you're never sure what your bank balance will be. In that case, you can also set up automatic payments for just the minimum payment due. This will keep you from missing a payment or making a late payment, both of which can have serious effects on your credit score. END
 TITLE: Credit Card Balance and Statement Balance: What’s the Difference? CONTENT: Striking a Balance\n------------------\nUnderstanding the difference between a credit card's current balance and its statement balance can help you manage your credit cards more effectively, maintain the best possible credit score, and ensure you always pay the correct amount on your credit card bills. Are you wondering how your credit card usage is affecting your credit report? Get a free credit report to find out. END
 TITLE: What Rights Do You Have As an Authorized User on a Credit Card? CONTENT: A person who opens a credit card account is the primary account holder, and is fully responsible for managing the account and making payments. As an authorized user, you are considered a secondary account holder. You have access to the account, but no ownership. Low credit scores or financial difficulties shouldn't prevent you from being added to the account, and having your name on the account can actually help lift your scores if it's reported to the credit bureaus.\nAlmost anyone can be an authorized user, and depending on the issuer, you may not even need to be an adult. All the primary account holder has to do is contact the credit card issuer and request that you be added to the account. You should then receive a copy of the credit card imprinted with your name.\nWhen you make a purchase as an authorized user, the primary account holder will receive the bill. All of your charges will show up on the card's statements, so the account holder will be able to view your activity, where the transactions were made and the amount of your purchases.\nTo keep spending in check, some credit card issuers allow the primary account holder to set lower limits on the amount that authorized users can spend. So if the card's limit is $10,000, you may only have access to $1,000, for instance. END
 TITLE: What Rights Do You Have As an Authorized User on a Credit Card? CONTENT: What Can and Can't You Do As an Authorized User?\n------------------------------------------------\nAs an authorized user, you have certain rights. Keep in mind there may be limits or fees imposed on what you can do with the card, and be sure you fully understand any potential repercussions before taking action. For example, you can:\n*   Use the physical card to make purchases at retailers\n*   Add the account information to your mobile device and make purchases\n*   Buy things online or over the phone\n*   Withdraw cash advances from the ATM\n*   Remove yourself from the account at any time (in most cases)\nOf course, there are also things you can't do as an authorized user. These include:\n*   Change the mailing address and have the statements sent to you\n*   Close the account\n*   Increase the limit\n*   Add additional users\nAnd then it gets tricky. Because authorized-user policies can vary by card and card issuer, the rules you're used to with one card may not apply to another card you're added to. For instance, some credit card issuers permit authorized users to access account information online. If yours does, you may be able to make payments, which could come in handy if the primary account holder is unable to or expects you to cover your own charges.\nOther issuers even allow authorized users to redeem accumulated rewards. In that case, you could do things like use points to book airfare and hotel rooms (with the primary cardholder's permission, of course).\nBefore making your first purchase, it is critical to know that no matter how much you spend with the card, the primary cardholder will be on the hook for your charges. You are under no legal obligation to pay the issuer, but that doesn't automatically absolve you from the debt. The primary account holder could take legal action against you in pursuit of payment if you went back on a promise to pay them back.\nMore, the primary account holder can remove you as an authorized user at any time and without advance warning. If you're removed from the account, you may only realize it when you try to make a charge and it gets declined. END
 TITLE: What Rights Do You Have As an Authorized User on a Credit Card? CONTENT: Is an Authorized User Different From a Joint Account Holder?\n------------------------------------------------------------\nAlthough they may sound similar, an authorized-user situation is quite different from being a joint account holder. As a joint account holder you are considered a primary account holder, not a secondary user. You also can't be added at a later date as a joint account holder; you would have to apply for the credit card at the same time as the other person.\nA common reason people become joint account owners is to increase their odds of credit acceptance. You may not qualify for a credit card on your own because you have poor or unestablished credit. By applying with someone who has great credit, however, the issuer may be more apt to grant the account. Both you and the other person would be equally responsible for payments and any resulting debt.\nJoint accounts are listed on the credit reports belonging to both cardholders. So if the account is managed well, it will help each of your credit ratings rise. If it's mismanaged, however, neither of you can get your name off the card until the debt is repaid and the account is closed. END
 TITLE: What Rights Do You Have As an Authorized User on a Credit Card? CONTENT: How Does Being an Authorized User Affect Your Credit?\n-----------------------------------------------------\nOne of the main advantages of being an authorized user is that it can give you a jump start on establishing credit with very little risk.\nThe issuer can report the account's account activity to the credit reporting bureaus, which helps to build or establish your credit history. As long as the bill gets paid on time and the balance doesn't climb too high, your credit scores should increase. That's because payment history and credit utilization are the two weightiest credit scoring factors. The longer a perfectly managed account is on your report, the more positive information will be calculated into your scores.\nAnd if the primary account holder falters and fails to pay? The good news is that Experian will remove the account from your credit report. While it's important to enter into these arrangements with someone you trust, it should be a relief to know that another person's bad habits don't have the potential to hurt your own credit goals.\nWhen you're an authorized user, be sure to check your free credit report from Experian to understand how the credit card account is listed. You'll want to see a long history of on-time payments, as well as a balance that's far below the credit limit. Free credit monitoring from Experian can also help you protect and improve your credit scoring by helping you address any potential fraud. END
 TITLE: What to Do if Your Credit Limit Decreases CONTENT: Why Did My Credit Limit Go Down?\n--------------------------------\nYour credit limit is the ceiling for how much money you can borrow through a revolving account, such as a credit card or line of credit. For example, $3,000 might be the maximum amount you can charge on a credit card.\nSeveral factors go into determining your credit limit. A lender normally sets your credit limit after reviewing at least one credit report and one credit score supplied by the three consumer credit bureaus (Experian, TransUnion and Equifax). Your credit report and credit score reveal your creditworthiness, which reflects how much money you owe to other lenders and other indicators of how you handle credit. The lender also might consider your household income and your payment history.\nBut even after your credit card issuer sets your original credit limit, it can decrease that limit without warning. When a card issuer reduces your credit line, however, it cannot impose an over-the-limit fee or penalty interest rate if you go over your new credit limit until 45 days after you've been notified about the lower limit.\nSome of the reasons a lender might decrease your credit limit include:\n*   **Missed or late payments**: The lender might have detected a number of missed or late payments, suggesting that you might be experiencing financial difficulties.\n*   **High credit utilization**: Your credit reports might show that you're using a significant amount of credit. This is reflected in your credit utilization ratio, or the amount of revolving debt you're using. The ratio is figured by dividing the amount you owe across all of your credit cards and other revolving credit accounts by the credit limits of those accounts. A ratio of 30% or more can start to hurt your credit scores, while a ratio in single digits is considered ideal. Always aim to keep the ratio under 30% to maintain a healthy credit score.\n*   **Low credit utilization**: If you haven't used a credit card much or at all over a certain amount of time, the card issuer might lower your credit limit.\n*   **Change in buying behavior**: Credit card issuers track your spending and how it changes, and may use the data they gather to alter your credit limit. But here's the good news: If you pay your card balance in full each month, the issuer could maintain the credit limit you had before you changed your spending habits. END
 TITLE: What to Do if Your Credit Limit Decreases CONTENT: What You Can Do After a Credit Limit Decrease\n---------------------------------------------\nA lower credit limit can come as a shock. Fortunately, you can take action to address the lower limit:\n1.  Contact your credit card company. Ask why it lowered your credit limit. Based on that knowledge, you might be able to take action to get your previous limit restored.\n2.  Check your credit reports. Monitor your credit regularly and look for any negative issues or errors that might have caused a card issuer to decrease your credit limit. If you see any inaccuracies that could be hurting your credit, work with the issuers of the reports to correct them.\n3.  Use credit responsibly. Making on-time payments and paying off your balance in full each month are two steps to help improve your standing with the card issuer that lowered your credit limit. END
 TITLE: What to Do if Your Credit Limit Decreases CONTENT: How Does a Credit Limit Decrease Impact Your Credit Score?\n----------------------------------------------------------\nA decrease in your credit limit might cause your credit scores to go down. Why? As noted above, a big part of your credit score calculation is based on your credit utilization ratio.\nYour credit utilization ratio represents all of your credit card balances at a certain point in time divided by the total of your credit limits. So, if the balances on your credit cards add up to $2,000 and your total credit limit is $10,000, your utilization ratio comes to 20%.\nWhen you close a credit card account or a card issuer decreases your credit limit, your overall credit limit declines. Using the example above, let's say you cancel a card with a $2,000 limit, so your total credit limit now is $8,000. Meanwhile, your total balances stay at $2,000. This results in your credit utilization rising from 20% to 25%. If a decreased credit limit results in a credit utilization above 30%, your credit scores can suffer. END
 TITLE: What to Do if Your Credit Limit Decreases CONTENT: How to Minimize the Impact of a Decreased Credit Limit\n------------------------------------------------------\nIf one of your credit card issuers reduces your credit limit, don't worry. It doesn't need to be permanent. Follow these three tips to ease the impact of a lower limit on your credit scores. END
 TITLE: What to Do if Your Credit Limit Decreases CONTENT: When Will Your Credit Score Recover?\n------------------------------------\nIf your score falls after your credit limit decreases, it will bounce back as long as you take the right steps, such as reducing your debt and making credit card payments on or before the due date. It might take a few months, but if you focus on those two moves, your credit scores can climb. END
 TITLE: How to Make Money Without a Job CONTENT: Sell Clothing and Other Items Online\n------------------------------------\nYour closet may be overflowing with items that no longer fit, or that you're simply not in love with anymore. Kids are a nearly unending source of outgrown clothing and shoes, some of which may have been worn just once or twice. You can sell lightly used (or like-new) clothing online and make extra money from the comfort of your home. Online marketplaces such as Poshmark and thredUP make it easy to market your goods and find a buyer. To sell successfully, consider these easy tips:\n*   **Present your items in top condition.** They should be clean and wrinkle-free.\n*   **Take high-quality pics.** Use good lighting and take shots from a variety of angles that really show off the article of clothing.\n*   **Price your items to sell.** Listing at a high price may exclude you from searches.\n*   **Write a quality description.** Let buyers know you're selling the perfect jeans for working from home, the most charming flower girl dress or the suit that wins the job.\nYou aren't limited to the clothes in your closet. If you have an eye for bargains, you may be able to shop thrift or discount stores and resell your items online. Apps like Mercari and Letgo help you sell furniture, appliances or household goods locally. Or check out listing opportunities on Facebook Marketplace, Nextdoor, eBay and Craigslist. If you have useful items you no longer need or want, chances are good there's an online marketplace where you can sell it. END
 TITLE: How to Make Money Without a Job CONTENT: Apply for Unemployment\n----------------------\nIf you've lost your job through no fault of your own, you may be eligible for unemployment benefits. Each state operates its own system, so eligibility requirements and benefits may vary depending on your location. Unemployment insurance typically won't cover you if you've quit your job, been fired, are an independent contractor or haven't worked at a job long enough to qualify.\nUnemployment benefits are meant to provide temporary support while you are between jobs. To that end, benefits don't last forever. In many states, unemployment benefits run out after 26 weeks; in some states, they can last as little as 12 weeks. During extraordinary times, the federal government may supplement and extend unemployment benefits, as they have done during the COVID-19 pandemic.\nAlthough unemployment benefits aren't a permanent substitute for gainful employment, they can be a critical lifeline for anyone who's between jobs. If you're also trying to make sure your credit stays in great shape, rest assured that collecting unemployment benefits doesn't affect your credit in any way. Unemployment benefit payments do not appear on your credit report and have no bearing on your credit score. END
 TITLE: How to Make Money Without a Job CONTENT: Cut Costs and Manage Payments When You're Unemployed\n----------------------------------------------------\nIf you've lost your job or your income has been reduced, now is a critical time to set a budget and get control of your finances. You may be limited in the ways you can bring in more money to your household budget, but you have a great deal of control over what you spend. When cutting costs, you'll focus on the things you can change, since expenses including your rent, utilities and other bills aren't very flexible. Think: streaming subscriptions, gym memberships and other bills considered discretionary. Here's how to start:\n*   **Re-evaluate your income.** Calculate how much money you expect to receive each month.\n*   **Take stock of your essential expenses.** How much do you need monthly for unavoidable costs such as housing, utilities, medical insurance and medical care, food, car expenses and credit card payments? Look at how you can reduce what you pay, as well. For instance, you may be able to reduce what you pay for car insurance, or spend less on groceries.\n*   **Minimize non-essential expenses.** Find ways to cut back where you can—even temporarily. You can always make those purchases again later on once you're able to make it work with your budget.\nSometimes, despite your best efforts, making every bill payment may not be possible. If you think you're about to fall short, contact your lenders, credit card companies, utilities and other creditors right away to let them know you're experiencing hardship. They may have accommodations that will help.\nKeep an eye on your credit as well. Losing your job can affect your credit if you have trouble making your regular debt payments. When it comes to credit cards and loans, every payment counts: Payment history is an influential factor in determining your credit score and payments that are 30 days or more past due can remain on your credit report for as long as seven years. END
 TITLE: How to Make Money Without a Job CONTENT: Should You Start Investing?\n---------------------------\nInvesting has certainly been in the news this year, which has put a spotlight on scores of individual investors trading stocks for fun and maybe even profit. In fact, it's not just short-term stock trading that is in play: From Bitcoin to foreign exchange trading, investing has become a hot topic and a potential source of income among everyday people.\nCould this be for you?\nInvesting can be a valuable source of passive income, but it's also a risky way to make money. If you're intrigued by the possibility of making money on investments, be sure to take the time to understand the full range of options available and what their pros and cons might be.\nTraditional long-term investments—like the ones that help you save for retirement—deploy a few common tactics to reduce risk:\n*   **Diversifying investments**: A typical retirement or long-term investment fund contains a mix of stocks and bonds. You may further diversify by choosing mutual funds, which allow you to own many individual stocks and bonds in a single holding.\n*   **Leveraging time for stability**: Although the stock market fluctuates constantly, in the long term it trends upward. That's why timing long-term investments is less risky: It's easier to predict a long-term gain than to pinpoint what an investment will do in the next few days, weeks or months.\n*   **Being conservative in the short term**: Conservative short-term investments tend to be less volatile but may also yield less profit. High-yield savings accounts, for example, are designed to preserve your money, not make you rich overnight.\nShort-term trading doesn't really operate on these principles. Instead, they rely on quick wins that can be turned into bigger investments. Can you make money doing this type of trading? Potentially, yes. But you can also lose a lot of money, which is especially catastrophic if you're already in financial straits.\nIf you've considered all the risks and are still interested in this type of investing, you might first try your hand using a simulator and fake cash. Be prepared to invest a lot of time learning how trading works and keeping up with news about the market. Start small. Don't invest money you can't afford to lose. And be ready to track your earnings so you can pay taxes on them. END
 TITLE: How to Make Money Without a Job CONTENT: Consider Starting a Business\n----------------------------\nIs now really a good time to start a business? Opportunity sometimes springs out of extraordinary circumstances. For many who have been furloughed or laid off during the pandemic—or who've needed to stay home with school-age children—necessity has been a motivator. If you have in-demand skills to share, a sure-fire product or service idea and the resources to launch and market a business, starting your own business could be more feasible than you think. Ask yourself these questions:\n**Do you have a skill you can market?** Suppose you've been laid off from your job as a human resources manager. Could you outsource your skills to local businesses by the hour? You might be able to recoup your income and retain the flexibility to work from home and set your own hours.\n**Do you have an idea that solves a problem?** Maybe you've invented a marketable product. Or you've cooked up the perfect recipe for a mobile, contact-free dessert delivery service. You may even see an opportunity to step into a local business someone is trying to sell. While it's essential to think through the market challenges of starting a business in 2021, viable markets still exist. Your pandemic business idea may still have legs once the pandemic is over, or you may be able to evolve as the market changes.\n**Are you the right person to make this business succeed?** Having the right work ethic, enthusiasm, business knowledge and even a network of supportive mentors can all contribute toward your success as a business owner. So, too, can access to capital. Though it can be tough to qualify for a startup loan, it is possible to get a loan to start a business—or to purchase an existing business. END
 TITLE: How to Make Money Without a Job CONTENT: Creating Options for the Future\n-------------------------------\nStarting a business, learning to invest or making side money as a reseller can help you generate needed income when you don't have a job. But these endeavors may also provide helpful income after you've found new work. If you start a successful business, you may not even need another job.\nBeing able to generate additional income can also help you preserve your good credit through difficult financial times. Although keeping up with payments can be difficult when your income is disrupted, working with creditors and monitoring your credit can help you ensure that you come through an income downturn in the best possible financial shape. END
 TITLE: What to Do When You Inherit a House CONTENT: What Are the Financial and Legal Responsibilities of Inheriting a Home?\n-----------------------------------------------------------------------\nIn the immediate term, you'll need to plan for the ongoing expenses of maintaining the home. That means continuing to pay the mortgage, utilities, property taxes, homeowners insurance and any urgent repairs or maintenance the home might need. Here are a few of the major considerations to take into account. END
 TITLE: What to Do When You Inherit a House CONTENT: How do you decide what to do with a home you inherit? This decision is profoundly personal. There are three main options to weigh, each with their own pros and cons. END
 TITLE: What to Do When You Inherit a House CONTENT: Do You Pay Taxes on a House You Inherited?\n------------------------------------------\nIf you decide to sell the house, you may be subject to taxes. Here's a quick rundown of potential tax liability to consider:\n**Estate Taxes**: In 2021, federal estate taxes may apply if the estate's combined gross assets and prior taxable gifts exceed $11.7 million. Additionally, AARP reports that 17 states and the District of Columbia have estate or inheritance taxes. Check with your state tax collector for more information.\n**Capital Gains Taxes**: If you decide to sell the home, your profits may be subject to a capital gains tax. The good news is you won't pay taxes based on what was originally paid for the house. The fair market value of a home resets upon the owner's death. So, if your parents bought their home for $50,000 and it's worth $500,000 now, the tax basis of your inherited home is $500,000. If you sell the house for $500,000, you won't have any taxable gains. If you sell it for $550,000, you'll pay capital gains taxes on $50,000.\nIf you decide to live in the house or rent it out, you'll pay property taxes on it, just as your relative did when they owned it. It may be part of the mortgage payment or separate from it. Depending on where you live, property taxes can be quite expensive; so as you decide how you will handle the inheritance, keep that cost in mind. END
 TITLE: What to Do When You Inherit a House CONTENT: Prepare Your Family for the Future With Estate Planning\n-------------------------------------------------------\nInheriting a house is complex. In addition to the practical issues outlined above, there may be emotional considerations as well. Are you prepared to part with your childhood home—or live in it? Do you and your siblings agree on how to proceed? And if not, how do you resolve these issues?\nAnother complication is probate. Probate is a lengthy—and costly—court process that determines how an estate is distributed after a person's death. Probate can drag out over many months and often requires legal help. Proactive estate planning, including the creation of a living trust, can help you and your family avoid probate. This is an important step to discuss with your parents or relatives, especially if you're in line to inherit their property. It's also something you may wish to undertake yourself to make inheritance simpler for your heirs. END
 TITLE: What Is a Tax Refund? CONTENT: How Do Tax Refunds Work?\n------------------------\nWhile there's only one federal tax deadline date, most of us accrue and pay taxes throughout the year. As you earn income, that income incurs tax liability. Typically, you also pay taxes—either in the form of withholding (money taken out of your paycheck or other payments) or estimates (tax payments you send to the government)—as you receive income.\nYour tax return reconciles these four things:\n1.  Income: The amount of money you earned in wages, business income, investment gains, unemployment benefits and so on.\n2.  Taxes: What you owe the federal and—in some cases—state or local government based on your total income, minus any deductions or allowances that may apply.\n3.  Payments: Any money you've paid to the government toward your taxes.\n4.  Credits: Money you may deduct directly from your tax bill. Examples include:\n    *   **Earned income tax credit**, which provides relief to low-income taxpayers and their families. The IRS has a tool to help you figure out if you qualify. For the 2020 tax year only, you may use either your 2020 or 2019 income to qualify.\n    *   **Child tax credit**, which offers $2,000 per qualified dependent in income tax credits for taxpayers who meet IRS income guidelines.\n    *   **COVID-19 stimulus payments**, which are also technically tax credits. Most eligible taxpayers have already received their COVID-19 credits in the form of stimulus payments, but if you haven't—and you qualify—you can use the Recovery Rebate Credit to apply stimulus payments to reduce your tax bill or increase your refund.\nYour completed tax return should tell you whether you owe the government additional money, paid the correct amount already or can expect a tax refund. END
 TITLE: What Is a Tax Refund? CONTENT: How to Claim Your Tax Refund\n----------------------------\nAre you due a refund? Here are three common ways to claim it.\n*   **Request direct deposit.** The IRS can deposit your refund electronically into your bank account if you request this option on your tax return. Direct deposit allows you to avoid mail delays and is the fastest way to receive your refund, according to the IRS.\n*   **Receive a check in the mail.** You can request a paper check instead of direct deposit, but expect to wait—even more so if you're mailing in a paper tax return. The IRS anticipates significant delay in both mailing times and the processing of paper returns this year.\n*   **Apply it to your next year's tax bill.** If, for example, you are self-employed and pay quarterly tax estimates, your first 2021 estimate is due on May 17, 2021 (the extended IRS deadline resulting from ongoing challenges of the coronavirus pandemic). Rather than wait for a payment from the government only to pay it right back to the Treasury, you can apply your refund to your next year's taxes and call it a wash.\nIf your refund isn't as robust as you might have hoped, consider working with a tax advisor to maximize your deductions and minimize your tax liability going forward. Although you probably won't be able to reduce your tax burden to zero, you may find ways to bring your overall tax bill down. Consider this as well: A large tax refund may be a sign that you're giving too much money to the government throughout the year. You may want to adjust your withholding or estimated tax payments and keep more of your money as you go. END
 TITLE: What Is a Tax Refund? CONTENT: Where Is My Tax Refund?\n-----------------------\nThe IRS says it issues nine out of 10 refunds in fewer than 21 days. Of course, if your return is incomplete or incorrect, includes a claim for an Earned Income Tax Credit or Additional Child Tax Credit, or you've been a victim of identity theft, your refund may take longer to process. You'll also wait longer if you file your taxes or receive your refund by mail.\nYou can track your refund payment using the IRS' Where's My Refund? tool or by downloading the IRS2Go mobile app. Using these tools won't expedite your refund, but they will allow you to see its progress. Many states also have online or mobile tracking for tax refunds: Search your state and \"tax refund tracking\" to find out more. END
 TITLE: What Is a Tax Refund? CONTENT: How to Use Your Tax Refund Money\n--------------------------------\nA tax refund is 100% your money and you are free to use it in any way you choose. That said, you may want to be intentional about using your tax refund money. It's your chance to pay down debt, launch an emergency fund, save for your retirement or even invest in yourself. If the past year has brought financial challenges your way, the lump sum you receive as a tax refund can help you recover.\nIf you just can't wait to receive your tax refund, some tax preparation services and tax preparation software companies may allow you to borrow against it with little or no interest and fees. You may not be able to borrow the entire amount you expect to be refunded—and you should always read the fine print—but this may be a viable option if you need the money as soon as possible.\nGetting a tax refund is certainly something to look forward to, even if preparing your taxes and waiting for your money can seem a little bit like work. And if you've survived the sometimes confusing financial year that was 2020 without owing additional money to the government, you deserve extra kudos. END
 TITLE: How Will COVID-19 Affect Your Taxes? CONTENT: Tax Season Is off to a Late Start\n---------------------------------\nThe IRS usually begins processing tax returns in mid-January, but this year it didn't begin until February 12. In a more normal time, you might think this buys you some extra time to do your taxes. But in COVID times, you may actually want to get a jump on your taxes. While the IRS extended the federal tax deadline to May 17 this year, if you expect a refund, it's best to file your return ASAP. The fastest route to a refund is to e-file and link your bank account for direct deposit.\nAdditionally, if your 2019 income did not qualify you for economic stimulus payments but your 2020 income might, filing your 2020 taxes sooner could enable you to receive stimulus payments. The upshot: Don't wait. END
 TITLE: How Will COVID-19 Affect Your Taxes? CONTENT: What to Know About Stimulus Payments and 2020 Taxes\n---------------------------------------------------\nDid you receive Economic Impact Payments? If you earned less than $75,000 as a single person, $112,500 as head of household or $150,000 as a married couple in 2019 or 2020, you may have been eligible for the first two rounds of COVID-19 relief payments. The first of these payments began going out in April 2020, and the second round in late December. A third round of payments is still being debated as of this writing.\nHere's what to know about Economic Impact Payments, also called stimulus checks, and your taxes:\n*   **COVID-19 stimulus payments are not taxable.** Receiving these payments won't affect how much you owe in taxes and they won't reduce the amount you receive as a refund.\n*   **You do not have to return stimulus money.** If your 2020 tax return shows that your income exceeded the limits listed above, don't worry. As long as your 2019 or 2018 income qualified you, you may keep the money. In addition, if you received $500 for a child who turned 17 in 2020, you do not have to return that payment either.\n*   **You can file for stimulus money you are eligible for but have not received.** By claiming the Recovery Rebate Credit on your 2020 tax return, your stimulus payment will be applied to your taxes as a credit, reducing the amount you owe or increasing your refund payment, depending on your situation.\n*   **Keep the notice you received with your payment(s) on file.** The IRS mailed out Notice 1444, Your Economic Impact Payment within 15 days of sending out stimulus payments. You should keep this notice with your 2020 tax records so you know how much you received in stimulus money and when you received it. END
 TITLE: How Will COVID-19 Affect Your Taxes? CONTENT: What if COVID-19 Changed Your Job Status or Income?\n---------------------------------------------------\nCOVID-19 has changed people's work lives in many ways. Some of these changes may affect your taxes.\n*   **Your unemployment benefits are taxable.** If you collected unemployment benefits, including the supplemental $600 per week provided by the federal government for part of the year, you must pay federal taxes on your unemployment benefits. You should receive Form 1099-G, Certain Government Payments, which shows the amount of unemployment compensation paid to you in Box 1 and any federal income tax withheld in Box 4. If you did not request taxes to be withheld or pay estimated taxes on your unemployment benefits in 2020, you will owe them at tax time. You may or may not owe state and local taxes depending on tax laws where you live.\n*   **Was your income reduced in 2020?** You may be eligible for the Earned Income Tax Credit (EITC). The IRS can help you calculate your eligibility using either your 2019 or 2020 income, whichever is more favorable for you. Also, if you had at least $2,500 in earned income and have qualifying children ages 17 and under, you may also be eligible for an Additional Child Tax Credit (ACTC). This year, taxpayers who are eligible for ACTC may receive any portion of the $2,000 Child Tax Credit that is left over after paying taxes as a refund. Normally, if the Child Tax Credit exceeds your tax bill, the remaining credit simply goes away.\n*   **Your home office expenses are not deductible.** If you've been doing your full-time job from home, you cannot deduct these or other business-related expenses, such as office supplies. However, if you've developed a side business to supplement your income, your home office and business-related expenses _are_ deductible.\n*   **The side income you made is taxable.** Did you do odd jobs, freelance or start a homebased business this year? The income you made is taxable, and you may be required to file Form 1040 Schedule C, Profit or Loss from a Business. END
 TITLE: How Will COVID-19 Affect Your Taxes? CONTENT: Special Rules for Retirement Withdrawals and Medical Expenses\n-------------------------------------------------------------\nCOVID-19 required many taxpayers to take unusual actions to help preserve their financial health. Here's how two of them affect your taxes:\n**Retirement withdrawal**: Did you withdraw money from your 401(k) or IRA to cover expenses this year? The IRS allowed taxpayers who were affected by COVID-19 to take up to $100,000 from a 401(k), 403(b) or IRA account between January 1, 2020, and December 30, 2020, without paying a 10% additional tax on early distributions. You may report the distribution over three years. And if you repay the distribution within three years, you can file amended tax returns to recoup the taxes you paid.\n**Medical expenses**: Did you pay more than 7.5% of your adjusted gross income for medical expenses in 2020? You may deduct that amount from your taxes. If you have a qualifying high-deductible health plan, you can also self-fund your health savings account before the tax deadline and use those funds to pay any outstanding medical bills—or any medical expenses you incur going forward. END
 TITLE: How Will COVID-19 Affect Your Taxes? CONTENT: What to Do Now for Your 2021 Taxes\n----------------------------------\nAlthough there's plenty of time between now and next April for new tax laws to go into effect, you can still do some early planning now.\n*   **Optimize your withholding.** If you had a large refund this year or ended up owing money, take a moment to adjust your withholding now. Ideally, you want to have just enough money withheld from your paychecks to cover your tax bill. Anything more is a loan to the government; anything less means making a payment at tax time.\n*   **Anticipate a smaller paycheck.** Taxpayers who saw an increase in their 2020 paychecks due to the payroll tax deferral could see a temporary reduction in take-home pay from January to April of 2021.\n*   **Stay tuned for updates.** As the federal government continues to work on COVID-19 relief, a new round of stimulus payments and tax-related legislation is likely to be enacted. Be sure to figure out how any changes will affect your 2021 taxes, and take action if necessary. END
 TITLE: What to Do With Your Tax Refund CONTENT: Pay Down Debt and Improve Your Credit\n-------------------------------------\nYour tax refund may offer a great opportunity to wipe out some credit card debt—and help you improve your credit score—in a few basic ways:\n*   **Catch up on late payments.** Your payment history is the single most heavily weighted factor when calculating your credit score. If you're in danger of being 30 days late (or more) on credit card or loan payments, using your tax refund to catch up is a strategic win. Late payments that are 30 days or more past due stay on your credit report for up to seven years and ding your credit score. Using your refund to avoid late payments is a lasting victory.\n*   **Consider a secured credit card.** Are you just starting to build or rebuild your credit? Applying for a secured credit card is one way to establish credit if you have a low credit score or a brand new credit history. With a secured card, you provide the card issuer with a deposit usually equal to your credit line. In other words, a $1,000 deposit could get you a $1,000 credit limit. One hurdle prospective cardholders have with secured cards is coming up with the deposit money. That's where your tax refund can come in handy.\n*   **Pay down your credit card debt.** The average annual percentage rate (APR) on credit cards is currently around 16%, according to the Federal Reserve. That can add up to hundreds of dollars a year if you carry high balances. Paying down your high-interest debt saves you money—and also helps boost your credit score. When you use a lower percentage of your available credit, your credit utilization improves and your credit score often rises accordingly. END
 TITLE: What to Do With Your Tax Refund CONTENT: Prepare for Financial Emergencies\n---------------------------------\nThe year 2020 might have gone a little overboard in illustrating the value of emergency funds. Between the global pandemic and the economic crisis—punctuated by wildfires, hurricanes and political upheaval—as well as all the major and minor personal financial crises people face in a typical year, the importance of having money in reserve has never been clearer.\nYour tax refund is the perfect seed money for an emergency fund. Although it's a good practice to build up three to six months' worth of expenses in an emergency account, starting with a few thousand dollars from your tax refund gives you a huge leg up. You may not earn a massive amount of interest, but keeping your emergency funds in a dedicated savings account will help you avoid spending it. END
 TITLE: What to Do With Your Tax Refund CONTENT: Invest in Your Retirement\n-------------------------\nWhat's the best time to start salting money away for your retirement? Now. The sooner you begin saving for retirement, the more time your money has to compound and grow. You can add up to $6,000 to an individual retirement account (IRA), or up to $7,000 if you're age 50 or older by the end of the year. Or, if you've been waiting for the right opportunity to learn about the basics of investing, now may be the time. END
 TITLE: What to Do With Your Tax Refund CONTENT: Invest in Yourself\n------------------\nWhile it's possible to spend your $2,500 tax refund on 688 brown sugar boba drinks, you might use the opportunity instead to pay for something you can't ordinarily afford—something that represents an investment in yourself and your life.\n*   **Well-being**: Get the LASIK surgery you've been putting off. Purchase home exercise equipment. Get dental work. Make appointments for any necessary medical tests and procedures you didn't do in 2020. Health is the best kind of wealth.\n*   **Education**: Whether you're interested in professional development, mastering new life skills or simply having fun learning to cook or play the ukulele, classes are a great investment in you.\n*   **Home improvement**: Complete the home repairs you've neglected or consider a refresh. New flooring, fresh paint or an upgraded kitchen or bath are not only uplifting but may also boost your home's value.\n*   **Fun**: Especially after 2020, devoting your tax refund to a vacation, clothing that's suitable for wearing outside your home, dinner out for you and your mates, basketball tickets—or, frankly, anything that sounds fun and won't break the bank—is your well-earned prerogative to consider as businesses and events start coming back. END
 TITLE: What to Do With Your Tax Refund CONTENT: Help Others\n-----------\nUsing your refund to help others—a friend in need, a deserving charity, a community project, arts organization or whatever cause is close to your heart—will pay dividends that go beyond dollars and cents. Bear in mind, too, that donating even a portion of your refund to charity can be good for your soul. END
 TITLE: What to Do With Your Tax Refund CONTENT: Do Something Good\n-----------------\nGetting a tax refund really isn't a windfall: It's money you overpaid to the government throughout the year. While a sizeable tax refund may be a sign that you should consider adjusting your withholding (or estimated tax payments if you're self-employed), it can also provide you with an annual opportunity to do something significant with a chunk of money—pay down your debt, amass savings, contribute toward your retirement, splurge or donate. And while the money itself is not a gift, the opportunity to do something good with it certainly is. Enjoy! END
 TITLE: Will Identity Theft Delay My Tax Refund? CONTENT: What to Do if You Discover Tax Identity Theft\n---------------------------------------------\nMany victims of tax identity theft don't discover the problem until they try to file their taxes. Receiving a message from the IRS website that you've already filed a return or receiving a notice in the mail that you've filed multiple returns for the year are classic signs of trouble. If you believe you've been the victim of tax identity theft or you've been notified by the IRS, follow these steps:\n*   **Contact the IRS Identity Protection.** You can reach them by phone at 800-908-4490 to open a case or get answers to any questions you may have.\n*   **Fill out IRS Form 14039, Identity Theft Affidavit.** You may also want to file this form with the IRS if you've been a victim of identity theft that does not involve the IRS or your taxes.\n*   **Verify your identity.** The IRS may send you letter 5071C, instructing you to verify your identity. You may be asked questions about past returns as part of the verification process.\n*   **Request a fraud alert****.** All three major credit reporting agencies (Experian, TransUnion and Equifax) provide this option, and filing a fraud alert with any credit bureau will trigger them to notify the other two. Alternatively, adding a credit freeze to your account will prevent credit checks associated with new credit while the freeze is in place. If you want more advanced identity theft monitoring, protection and fraud resolution assistance, consider Experian IdentityWorksSM.\n*   **File a complaint with the FTC on IdentityTheft.gov.** You may also wish to file a report with your local police. END
 TITLE: Will Identity Theft Delay My Tax Refund? CONTENT: When It's Time to File Your Taxes\n---------------------------------\nAs tax day approaches, you may wonder what to do about filing your taxes. Should you wait for your case to resolve with the IRS before proceeding with this year's return? Or should you file anyway and await the results?\nFile your taxes promptly. Duplicate returns can trigger problems with the IRS e-file system, so be prepared to file a paper return if necessary. If your return was rejected when you tried to e-file, you have 10 days to print it out and put it in the mail, even if this takes you beyond the federal tax filing deadline.\nWhat if you already filed your taxes and have now received a letter from the IRS informing you that multiple returns have been filed under your Social Security number? Follow the instructions in the IRS letter: Contact the agency with the information they need to verify your identity and move forward with processing your tax return. END
 TITLE: Will Identity Theft Delay My Tax Refund? CONTENT: Will Your Refund Be Delayed?\n----------------------------\nWhether the IRS contacts you about duplicate tax returns or you've reached out to them after having trouble e-filing your return, tax identity fraud will probably delay your refund. Although every case is different, weeks or even months can pass before your case gets resolved.\nThink through this hypothetical: An IRS screening system finds possible identity theft related to your tax return. From there, the identity theft resolution process begins:\n*   The IRS sends you a letter through the U.S. mail to notify you of the issue and ask you to verify your identity. This can be done online, by phone or in person at an IRS office. It's important to note that the IRS will always send a letter first—you will not receive an impromptu call or email from them requesting information or payment or threatening to throw you in jail. It's possible that follow-up correspondence will be done via other methods, but a letter will always come first.\n*   If you don't receive the letter, don't read it or don't respond, your return remains on hold.\n*   Once you verify your identity, the IRS will process your return, and may apply additional scrutiny to help safeguard against fraud. These checks may take only a few days to complete, but about a quarter of returns requiring a manual review take 56 days or longer, according to the IRS.\n*   Once your return is processed and a refund approved, the IRS can take a few weeks to issue a refund.\n*   If you've elected to receive your refund by check, add at least a week for the U.S. mail to deliver it.\nIRS fraud filters flagged 5.2 million refunds in 2020. Roughly 18% of the tax returns flagged for possible identity fraud by the IRS in 2020 took longer than 120 days to resolve, according to the IRS Taxpayer Advocate Service. In 2020, 65,000 taxpayers sought Taxpayer Advocate Service assistance with pre-refund identity or income verification issues. If you experience a delay in getting your refund due to identity theft and it causes you financial hardship (think eviction, utilities being disconnected, inability to pay for medical care), you can contact the Taxpayer Advocate Service to file an appeal. END
 TITLE: Will Identity Theft Delay My Tax Refund? CONTENT: Be Proactive With Your Identity Going Forward\n---------------------------------------------\nClearly, the best way to deal with tax identity fraud is to avoid it in the first place. Study up on how to avoid tax identity theft. Three tips to consider:\n*   Limit access to your Social Security number.\n*   Only work with a trusted tax preparer.\n*   Look out for phishing scams, including callers or emailers posing as the IRS.\nNew in 2021, all taxpayers have the option of getting an Identity Protection PIN (IP PIN) valid for one year from the IRS to help protect their tax identities. Doing so will provide you with an added layer of security when filing your taxes. You use an IP PIN when filling out your paper or electronic tax forms. The IRS will not contact you and ask you to provide an IP PIN, either by phone or email. If you receive a call or an email solicitation that requires you to give your IP PIN, hang up or delete the email.\nRemember, too, that any criminal who has enough personal identifying information on you to file a fraudulent tax return also has enough information to open credit card accounts, file for unemployment or use your personal identifying information on a job. In addition to checking your credit reports, placing fraud alerts and activating credit freezes at all three credit bureaus, you may want to consider using identity theft protection such as Experian's IdentityWorks. IdentityWorks monitors your credit file and Social Security number and alerts you to any suspicious findings. It also enables you to lock and unlock your credit file with an easy-to-use app and offers identity theft insurance and fraud resolution assistance, so managing your identity is simpler.\nThat's important, because identity theft can complicate your life—and your taxes—in many unwelcome ways. If your identity has been stolen to file a fake tax return, your tax return will probably take longer than usual to process and your refund will likely be delayed. File your taxes as early as possible and respond promptly to any IRS communications for the best results. END
 TITLE: 7 Tips to Help You Recover From Holiday Spending CONTENT: 1\\. Cash In a Few Vacation Days\n-------------------------------\nAmericans left 768 million vacation days unused in 2018, according to a survey by the U.S. Travel Association—and that was before the pandemic nixed many travel plans for 2020. Taking a vacation is great for your mental health, so don't rob yourself of all your paid time off. But cashing in a few of the vacation days you didn't get to luxuriate in this past year could help mitigate your holiday spending. END
 TITLE: 7 Tips to Help You Recover From Holiday Spending CONTENT: 2\\. Rent Out Your Car\n---------------------\nIf you have an extra car in good condition, you may be able to rent it out on a carsharing platform like Turo or Getaround. Although you'll have to clean and maintain your vehicle (check out the guidelines on each site), you can set your own availability and pricing. Don't have a car? You may be able to rent out your empty garage space on Neighbor or Spacer. END
 TITLE: 7 Tips to Help You Recover From Holiday Spending CONTENT: 3\\. Get a Side Gig\n------------------\nThanks to the gig economy, it's now easier than ever to make a little money fast by doing extra work. Drive for DoorDash, Uber or Lyft. Find a temporary job on Indeed or ZipRecruiter. Get freelance work on sites like Upwork and Fiverr. Look for odd jobs on TaskRabbit or Thumbtack. Sign up for babysitting on Care.com or petsitting on DogVacay. Doing side work doesn't have to be tedious. In fact, it can be a great outlet for outside interests. Connect with your inner educator by doing some tutoring or get some aggression out by doing a few hours of demolition work—all while paying off holiday debt. END
 TITLE: 7 Tips to Help You Recover From Holiday Spending CONTENT: 4\\. Sell Things You Don't Need\n------------------------------\nWhile most of us have small items like clothing or shoes we can sell on Poshmark or eBay, many also have larger items—cars, bicycles, patio furniture or computers—that could be making cash and freeing up space. Stop tripping over that workout equipment in your garage and help it find a new life gathering dust in someone else's home, while you rake in extra cash. END
 TITLE: 7 Tips to Help You Recover From Holiday Spending CONTENT: 5\\. Renegotiate Your Monthly Bills\n----------------------------------\nIt's easy to put monthly bills on autopilot—literally, if you set up automatic payments. But many of those bills may be worth a second look. If your credit is good and your job is steady, refinancing your house or car loan may be a money-saving option. Though you'll need great credit to qualify, a balance transfer credit card with a 0% intro APR may help you lower your interest costs—and your monthly credit card bill. Consider switching cable TV, internet or mobile phone providers. Look into ways to save money on home or auto insurance. And consider canceling monthly subscriptions you don't use much. Paring down your monthly expenses can help you recover from holiday spending—and it can also improve your finances over the long term. END
 TITLE: 7 Tips to Help You Recover From Holiday Spending CONTENT: 6\\. Consider a Debt Consolidation Loan\n--------------------------------------\nIf your holiday credit card bills seem insurmountable—or if they tipped an already large debt load over the top—a debt consolidation loan could help you save money on interest and give your repayment plan some structure. A debt consolidation loan is a type of personal loan, so you'll pay it back in regular installments over a set period of time. Debt consolidation loans typically feature lower interest rates than credit cards do, and they may even help your credit score by reducing your credit utilization rate. You can read up on whether a debt consolidation loan is right for you and find a list of loan options with Experian CreditMatch™. END
 TITLE: 7 Tips to Help You Recover From Holiday Spending CONTENT: 7\\. Prepare for the Next Holiday Season\n---------------------------------------\nIdeally, a few months of belt-tightening, creative fundraising and budgetary discipline will put you back on track financially. Now consider taking a few proactive steps to take the financial pain out of the holidays to come:\n*   **Set aside a few dollars a month for holiday spending.** Even if you save half of what you ultimately spend, you'll be ahead of the game.\n*   **Pay down debt and keep your credit in good shape.** It's far easier to create a post-holiday payoff plan when your credit starts the season in a good place. Don't forget to monitor your credit to protect against holiday (and year-round) identity theft.\n*   **Cultivate good money habits throughout the year.** Stick to a budget, eliminate money wasters, build up your savings—these everyday practices can make the holidays even more festive by creating room for extra spending without ramping up extra stress. END
 TITLE: Is It Better to Use a Mortgage Broker or Bank? CONTENT: How Do Mortgage Brokers Work?\n-----------------------------\nA mortgage broker acts as a middleman between you and lenders when you're shopping for a home loan. Most mortgage brokers work with a variety of lenders, including banks, credit unions and private mortgage companies, which allows them to offer you a wider range of choices. If you have less-than-perfect credit, are self-employed or have any other special circumstances, this extra flexibility can help you find the best fit.\nHaving a great mortgage broker is like having a great real estate agent: They get you results you couldn't easily get yourself. Mortgages have a lot of working parts: interest rates, down payments, origination fees, points and more. A good broker can help you understand how these variables work together and what makes one loan a good value compared with another.\nBut be aware: Mortgage brokers work on commission from lenders. For that reason, they may have an incentive to sell you a bigger loan—or steer you toward one lender over another, regardless of what's best for you. Some mortgage brokers may charge you fees, but a great broker will be forthcoming with both loan options and good information. To help ensure that your mortgage broker is working hard for you, consider these three tips:\n*   **Get a referral.** Recommendations from friends, family, your financial advisor or a trusted real estate agent can help you find an honest, earnest mortgage broker.\n*   **Ask about fees upfront.** Ask your broker how they are being compensated and what fees, if any, you might have to pay for their services.\n*   **Do your own math.** A broker can help you determine how much loan you qualify for, but it's not for them to decide how much you should borrow or which rates and terms are acceptable to you. That responsibility is yours. END
 TITLE: Is It Better to Use a Mortgage Broker or Bank? CONTENT: How Do Bank Mortgages Work?\n---------------------------\nGetting a mortgage from your bank or credit union is a simpler process. You complete a loan application, meet with a loan officer and review your available choices. Your bank or credit union may have excellent options for you, and getting a home loan through your own financial institution may qualify you for relationship perks like free checking.\nOn the downside, working with one bank limits your choices. The bank next door might offer a better deal, but you won't know about it if you only talk to your bank. That could be important if your credit score might qualify you for a better rate at one financial institution over another. Even a small difference in your interest rate can cost you tens of thousands of dollars over the life of a 30-year mortgage.\nAgain, doing your homework is key. Learn more about qualifying for a mortgage and consider which factors might affect your loan approval, rates and fees. Familiarize yourself with going interest rates and see how your bank's rates line up. Armed with this knowledge, you'll have some idea whether or not you're getting a good offer from a bank. Do you have doubts? You can always shop around with other lenders—and a mortgage broker—to see what they have to offer before you sign. END
 TITLE: Is It Better to Use a Mortgage Broker or Bank? CONTENT: How to Choose Between a Bank and a Mortgage Broker\n--------------------------------------------------\nWhich avenue is best for you could come down to whether you already know a good mortgage broker or bank loan officer. If you have a line on a great broker or banker who is knowledgeable and trustworthy, or you've had a good experience working with your bank on a loan in the past, that might tip the scales.\nIf you don't have a ready contact in the mortgage business, try shopping around. Consulting multiple sources, including brokers as well as banks, is one way to get a better idea of what each has to offer. Online lending sites can also help you understand your range of available options, based on your credit score, income, down payment and home value.\nGetting prequalified for a mortgage with both a bank and a mortgage broker can help you understand what your options are and compare offers. While an offer can change once you submit an actual loan application, prequalification will give you a good idea of what rates and terms you can expect. This could help you see right away whether your bank or a mortgage broker is likely to offer you the best rate and terms.\nWhether you're meeting with a broker or a bank, here are a few questions to ask:\n*   What loan options am I likely to get?\n*   What should I expect my closing costs to be?\n*   Do you see anything in my loan application that might make it difficult for me to be approved for a loan or might cause a delay?\n*   Do I qualify for any special loans, such as those offered by government-backed mortgage programs?\n*   How long do you expect the loan process to take? END
 TITLE: Is It Better to Use a Mortgage Broker or Bank? CONTENT: How to Get Your Credit Ready for a Mortgage\n-------------------------------------------\nFor most people, a mortgage is the biggest and most consequential loan they'll ever get. It typically involves the largest sum of money and the longest loan term, so details matter—on both sides of the lending relationship.\nYour credit score and history play a major role in whether you'll be approved for a mortgage and what your interest rate and terms will be. Before you begin shopping for a loan, be sure to prepare your credit for the scrutiny of the loan process. If your credit is in need of a reboot, you may want to postpone your home search until you can take time to rebuild your credit.\nIn addition to checking your credit score and report, consider these steps to maintaining your best credit throughout the loan application process:\n*   **Pay every bill on time.** Payment history is the most important factor in your credit score. Even if you can only make minimum payments, don't be late. A single late payment stays on your credit report for seven years and will hurt your credit.\n*   **Minimize debt.** If you can pay down any outstanding debt, particularly credit card balances, this is a great time to do so.\n*   **Don't take out additional loans or add to your credit card balances.** Try to put off any large purchases until after your home loan is funded. END
 TITLE: Is It Better to Use a Mortgage Broker or Bank? CONTENT: The Choice Is Yours\n-------------------\nTaking out a mortgage is a huge financial commitment. Loan officers and mortgage brokers can be genuinely helpful to you along the way, but you'll need to rely on your familiarity with your own finances, your good judgment and your own research to decide how much loan you can afford, what interest rate is acceptable to you and what you're willing to pay in fees—to name just a few of the decisions you'll face. You can navigate the home loan application process successfully with the help of either a mortgage broker or a bank loan officer. Whichever option gets you the loan terms you need to finance your home comfortably is the right choice for you. END
 TITLE: How to Teach Your Child to Budget Money CONTENT: Teaching Elementary School Children How to Budget\n-------------------------------------------------\nThe most important thing you can do to help your kids understand budgeting is to model good money management. Telling your kids that budgeting is valuable isn't nearly as impactful as demonstrating good practices every day. If your elementary-age kids have a natural-born interest in accounting, you can pass along some practical tips on budgeting. Otherwise, lay the groundwork with these fundamental concepts:\n*   **Money is finite.** Even a very young child can learn that we can't buy everything we want just because we want it. Explaining—repeatedly, if necessary—that money is a limited resource sends the message that money is something we manage.\n*   **Having money is saving money.** Open a savings account for your child and help them understand that savings is the place where their money should live. At this age, keeping money in savings and withdrawing only what you intend to spend is a good starting practice. Later, when your child has more money coming in, you can introduce the idea of setting aside money to save. Additionally, having a piggy bank at home to collect cash encourages kids to keep track of their money and watch it accumulate.\n*   **Opportunity is yours to create.** If your child wants a video game that isn't in the budget, challenge them to figure out how to afford it. Can they do some extra work around the house to earn money? Do they have money in savings they can use? If the dollar amount is out of their reach but you have the funds, you could offer to match their contribution. END
 TITLE: How to Teach Your Child to Budget Money CONTENT: Teaching Middle School Children How to Budget\n---------------------------------------------\nBy middle school, kids have the math skills and conceptual thinking to do some rudimentary budgeting. They're also ready to learn some of the realities of money management—from you, the in-house money manager. Bring your kids into your financial world. While you don't want to burden them with money stress or overwhelm them with too much information, no one is going to talk to them openly about how to earn a living and make ends meet like you will.\n*   **Share your costs.** Explain how much it costs to maintain your home—rent or mortgage, insurance, utilities and maintenance. Tell them how much you spend on groceries each week. How much did your car cost? How do you pay for it?\n*   **Talk about credit.** Credit is an abstract concept, but it can dictate whether or not you buy a home or finance a car. What is credit? How does it work? What do you do to maintain good credit and how does that help you?\n*   **Show them how to use a spreadsheet.** Most middle schoolers don't have enough capital to warrant a budget of their own, but they can use spreadsheets to understand how budgets work. Ask them to list out how much owning a dog would cost. Or how much they would need every month to pay for a new car with a five-year loan.\n*   **Consider a parent-managed debit card.** Part of budgeting is learning how to control spending on a card account. What if you could give your kid a card with training wheels? Parent-managed debit cards like Greenlight function like bank debit cards, but they come with an app that allows parents to view and control spending—or receive alerts when transactions are made. Spending is limited to what's loaded onto the card, keeping risk low. END
 TITLE: How to Teach Your Child to Budget Money CONTENT: Teaching Teenagers How to Budget\n--------------------------------\nTeenagers face new money challenges: getting a first job, social pressure to spend and even high-cost school and extracurricular activities. As their independence increases, so can their responsibilities.\n*   **Introduce zero-based budgeting.** Creating a budget that accounts for every dollar of income and spending each month is helpful for anyone, but teens are at an especially good financial moment for zero-based budgeting. Income and spending are relatively simple, there's a fair amount of flexibility, and they aren't prone to budget-busting surprises like a leaky roof.\n*   **Help identify money wasters.** Your teen does not need to carry a designer handbag or have a hand-tossed pizza with prosciutto di Parma delivered to band practice four times a week. You can explain to them how frivolous spending can hurt their ability to save and to spend on needed items.\n*   **Reinforce savings.** Establishing the habit of setting aside a portion of every deposit for savings is priceless. Just 10%—every single time—will pay dividends for life.\n*   **Encourage them to use digital tools.** Teens already have an uncanny ability to master payment apps like Venmo and Cash App. Help get them started with mobile banking (and a checking account), show them how to sign up for account alerts and connect them with money management apps like Mint or Plaid.\n*   **Get their help with college budgeting.** That's not just budgeting their personal expenses during college, but also budgeting to pay for college. Cost can be a huge factor in determining where your kids go to school—and how much debt they might have when they graduate. Get them involved early so they can factor money into their college decision-making. END
 TITLE: How to Teach Your Child to Budget Money CONTENT: When Should Kids Start Building Credit?\n---------------------------------------\nWhile it's great to go out into the world with a bit of a credit history and a decent credit score, kids do not necessarily need access to credit at an early age. First consider whether they're ready to handle credit responsibly. If not, wait.\nFor young people looking to get credit for the first time, there are a few common options to explore. You may be able to add your minor child to your credit card account as an authorized user. They'll receive a card with their name on it they can use to make purchases, but they are not responsible for paying. You are.\nIf your child is off to college or ready to move out, a secured credit card can help them get started in the world of credit. These cards generally start with a low credit limit and require a security deposit that typically equals the credit line. A card with a $500 credit limit, for example, may require a $500 security deposit, which will be used to pay the bill in the event of a default. Other cards offer college students a modest credit line without requiring a deposit. END
 TITLE: How to Teach Your Child to Budget Money CONTENT: Money Management Skills Pay Off\n-------------------------------\nHaving the skills to budget and manage money successfully can serve kids well throughout their lives. These are the building blocks for spending responsibly, saving for emergencies, securing credit, building wealth and enjoying a less stressful financial life. And while it's possible to learn these skills as adults, cultivating good habits from a young age makes those habits more likely to stick. END
 TITLE: Do I Need Good Credit to Buy a Fixer Upper? CONTENT: Mortgage Loan Options for a Fixer Upper\n---------------------------------------\nBuying a fixer upper creates special financing challenges. A conventional mortgage is often not the ideal choice. If your fixer upper doesn't have working utilities or is otherwise uninhabitable, for example, a regular bank or finance company may balk at extending a loan. Also, conventional mortgages don't typically include an allowance for significant repairs. If you want a conventional loan, you'll usually need to find other sources of funds for repairs, such as using some of the cash you'd planned for your down payment; using interim acquisition and improvement financing; or finding separate financing, such as personal loans, to cover renovations.\nAlternatively, there are mortgage programs designed specifically for fixer-upper properties. These are generally backed by the government and offered through private lenders such as banks and credit unions. With a renovation loan, you can add a repair budget to your purchase price and finance the entire project with a single loan. The lending process can be a bit more complex, requiring pre- and post-renovation appraisals, contractor estimates, multiple inspections and special escrow accounts for renovation funds. But the benefits are clear: You'll have the funding you need to complete repairs and upgrades—and may have built-in reserves for unexpected expenses. You also may be able to fold in the cost of renting a place to live during renovations into the loan and may even get help qualifying for a loan with less-than-perfect credit.\nHere are four renovation loan programs to consider: END
 TITLE: Do I Need Good Credit to Buy a Fixer Upper? CONTENT: How Your Credit Impacts Getting a Mortgage\n------------------------------------------\nGenerally speaking, the higher your credit score, the better your choices will be when shopping for a home loan. A higher credit score is more likely to win you a loan approval; it also typically earns you a lower interest rate.\nThat being said, the minimum credit score requirements for the government-backed renovation loans listed above are not astronomical. Some are even designed for homebuyers who might not have the credit score to qualify for a traditional mortgage. For instance, with a 10% down payment, the minimum credit score for an FHA loan is 500—or 580 if your down payment is less than 10%. Credit score requirements for VA loans vary by lender, but typically a \"good\" score of 670 is a reasonable starting place. Fannie Mae and Freddie Mac loans have a minimum credit score of 620, but higher scores make it easier to qualify and are all but essential if your down payment is below 20% to 25%. Check with your individual lender for their requirements.\nHaving a sufficient credit score is only one factor in getting your home loan approved. Lenders will also look at your debt-to-income ratio to make sure your income is adequate to cover your outstanding payments. Although 100% financing may be available for your fixer upper, having a down payment will open the door to more funding options. A larger down payment of 20% or more will not only make it easier to qualify for a loan, but may also lower your interest rate. Finally, lenders also want to know that you have resources to fall back on if your income is disrupted, so savings and investments are a help.\nJust as lenders will evaluate your application, you'll need to evaluate which loan works best for you. Renovation loans come with a host of restrictions and requirements. Because of the complexity and additional risk that a fixer upper represents, it may help to work with a knowledgeable mortgage broker or loan officer who can help guide you through the financing process. END
 TITLE: Do I Need Good Credit to Buy a Fixer Upper? CONTENT: How to Prepare Your Credit for a Mortgage Application\n-----------------------------------------------------\nYour mortgage is likely to be the largest loan you'll ever finance—the highest dollar amount and the longest loan term. For that reason, even a small difference in your interest rate can translate into dramatic savings over the life of your loan. To illustrate: A 30-year, $500,000 mortgage at 3.25% costs about $283,000 in total interest. If your interest rate jumps just 1.25%, the total interest over 30 years tops $412,000, or $129,000 more.\nSometimes the difference between a more affordable loan and an unaffordable loan is just a few points on your credit score. If you're planning to buy a home in the near future, it may pay to prepare your credit for getting a mortgage.\n*   **Check your credit score and report.** You want to know your credit score and credit history in advance so you can figure out which loans might work for you. You also want to make sure your credit report doesn't contain any inaccuracies you should dispute.\n*   **Look for quick ways to boost your credit score.** While you probably can't do a complete makeover on your credit in just a short time, you may be able to optimize it a bit by paying down credit card debt. If you have a record of on-time utility, telecom and streaming bills, Experian Boost™† could give you an instant score increase.\n*   **Don't apply for new credit.** This is not the time to apply for that rewards card you've been eyeing or take out a new car loan. Hard inquiries on your credit can temporarily lower your score. Having additional revolving debt will raise your credit utilization, and more debt overall drags down your debt-to-income ratio. Save the new credit applications for after your mortgage closes.\n*   **Pay every bill on time every time.** While you can't go back and fix your payment history, you can make sure you pay all your bills on time starting now. Your payment history is the single greatest factor in determining your credit score. END
 TITLE: Do I Need Good Credit to Buy a Fixer Upper? CONTENT: Is a Fixer Upper in Your Future?\n--------------------------------\nChoosing a home in need of renovation takes courage. But the additional risk—and hard work—can pay off. Though the financing process for fixer uppers is a bit more complicated, financing options do exist, even for buyers with a few credit challenges. END
 TITLE: How Can I Improve My Money Habits? CONTENT: 3 Positive Money Habits You Can Start Today\n-------------------------------------------\nFinancial health begins with these three habits: controlling your cash flow, building good credit and saving for emergencies and the future. Taking the steps to lay this foundation will make managing your money easier and more intentional going forward.\n1.  **Create a budget and stick to it**. Understanding how your money comes and goes is the key to better financial management. It's worth learning how to create a real working budget, but even knowing these four things can help clarify your financial situation:\n    *   Your monthly income after taxes.\n    *   Essential expenses, such as rent or mortgage, basic utilities, food, car payments and insurance.\n    *   The amount of savings you regularly set aside for your emergency fund, retirement, or other financial goals such as a down payment on a home.\n    *   What you spend on everything else, including dining out, entertainment, your phone plan and travel.\n    Once you understand your income and outflow, take a moment to review. Can you reduce your essential expenses by canceling services or shopping for cheaper insurance? Can you fine-tune your discretionary spending? Finally, make sure you continue to track your income and expenses regularly so you know when you're on track or veering off course. A budget will do you no good unless you follow the spending and saving goals set within it. Remember, though, a budgeted lifestyle doesn't have to be a joyless one. Set aside room in your budget for discretionary spending or \"fun money\" so you can still enjoy yourself without worrying you'll break the bank.\n2.  Stay up to date on credit scores and reports. Good credit helps you keep your financial options open. You'll need it to get the best interest rates and terms on things like credit cards, auto loans, home loans and personal loans. Learning how to build and maintain good credit gives you a financial edge. Because it's always better to know where you stand, monitoring your credit score and report is a helpful habit. You'll know what your credit options are at any time. You'll also be able to spot—and correct—anything driving down your scores. You can download your credit report and score for free; you can also sign up for free credit monitoring, which provides credit score tracking, credit report updates, customized alerts and even a personal finance tool to help you budget.\n3.  Set up automatic transfers to savings and investment accounts. Saving and investing often get shortchanged in a person's budget. When you spend a little too much on dining out or make a purchase you can't afford, priorities can easily shift and compromise your savings budget. To help prevent this from happening, automate your savings and investing. If your employer offers automatic contributions to a retirement plan, consider taking advantage—even more so if your employer matches your 401(k) or 403(b) contribution. Many banks and credit unions allow you to set up regular automatic transfers from your checking account to savings. Additionally, apps like Acorns and Qapital help you turn your everyday transactions into savings opportunities by rounding up your purchases to the nearest dollar and saving or investing the difference automatically. These probably aren't a substitute for setting aside some of your income each paycheck, but they can supplement your regular savings with very little effort.\nCommon Bad Money Habits to Break\n--------------------------------\nCreating a budget, staying up to date on your credit and automating your savings can build a foundation for better money management. But, in truth, breaking some of the most common bad money habits is also critical. Here are three to keep in mind:\n**Overspending on credit cards.** Any overspending is a potential problem, but overspending on credit cards tends to compound the issue. It's easy to overspend on credit cards, and your balance will only get harder to tackle once interest starts to accrue. Before you know it, you've used up a large portion of your available credit, lowered your credit score and created a mountain of debt that will be difficult to overcome. If possible, bring your credit card balances down to zero before the end of your billing period to prevent debt from spiraling out of control. Only charge what you know you can afford or have a plan for paying off over time.\n**Flying blind.** You can't stick to a budget if you don't have one. Set spending targets, track your transactions, and review ongoing expenses like insurance and phone plans to see whether you have opportunities to save. Though you may not think of these options often, consolidating credit card debt or refinancing your home could save you money.\n**Neglecting to save.** While it's important for you to stick to a budget, it's also good to remember that life has a way of throwing you off your game. Unexpected life events, financial setbacks, broken appliances, the dream of retirement—they all point to the value of saving. Don't neglect to set money aside for these things; you'll be glad you did when the time comes that you need it.  \nHow to Practice Healthy Credit Habits\n-------------------------------------\nGood credit habits and good money habits go hand in hand. Spend a little time learning how credit works—and how you can make it work for you. In the meantime, follow these four simple rules for maintaining your best credit score and keeping your credit report in top shape:\n1.  Pay bills on time. Every bill. Every time.\n2.  Keep your credit utilization low.\n3.  Check your credit regularly.\n4.  Apply for new credit only when necessary.\nHow to Spend Less and Start Saving More Money\n---------------------------------------------\nThere are many ways to spend less and save more. Only you know where you can best cut back. For many of us, it's not a matter of sweeping change: It's the accumulation of small efforts. To get your thinking started, consider these incremental changes:\n**Spend cash, not credit.** Budget out cash monthly or every payday to help limit your spending. When the cash is gone, your spending is done. Do you make a lot of online purchases? Use your debit card or load your budgeted amount onto a reloadable prepaid card. Your spending will end when your money runs out.\n**Try your hand at DIY.** Cook at home. Be your own barista. Mix your own cocktails. Take a stab at home repairs instead of calling a contractor. Even if you replace half of your expensive restaurant outings with home-cooked meals, you're likely to come out ahead.\n**Be patient.** Disable your automatic renewals. Ditch your unwanted subscriptions and memberships. Contemplating a large purchase? Make it a policy to leave the store or walk away from your computer for an hour before you complete your transaction to avoid impulse decisions. And don't spend money to save money: A sale is not an urgent event.  \nManaging Wisely Through Whatever Life Brings\n--------------------------------------------\nBudgeting, saving and spending wisely won't make your life more predictable. You may still encounter an occasional flat tire, job loss or irresistible spending opportunity—in fact, this is practically guaranteed to happen. Again and again. The best thing about cultivating good money habits is that they serve you well over time, through whatever life brings, and you can put them into practice any time. Even starting now. END
 TITLE: How Can I Improve My Money Habits? CONTENT: Common Bad Money Habits to Break\n--------------------------------\nCreating a budget, staying up to date on your credit and automating your savings can build a foundation for better money management. But, in truth, breaking some of the most common bad money habits is also critical. Here are three to keep in mind:\n**Overspending on credit cards.** Any overspending is a potential problem, but overspending on credit cards tends to compound the issue. It's easy to overspend on credit cards, and your balance will only get harder to tackle once interest starts to accrue. Before you know it, you've used up a large portion of your available credit, lowered your credit score and created a mountain of debt that will be difficult to overcome. If possible, bring your credit card balances down to zero before the end of your billing period to prevent debt from spiraling out of control. Only charge what you know you can afford or have a plan for paying off over time.\n**Flying blind.** You can't stick to a budget if you don't have one. Set spending targets, track your transactions, and review ongoing expenses like insurance and phone plans to see whether you have opportunities to save. Though you may not think of these options often, consolidating credit card debt or refinancing your home could save you money.\n**Neglecting to save.** While it's important for you to stick to a budget, it's also good to remember that life has a way of throwing you off your game. Unexpected life events, financial setbacks, broken appliances, the dream of retirement—they all point to the value of saving. Don't neglect to set money aside for these things; you'll be glad you did when the time comes that you need it. END
 TITLE: How Can I Improve My Money Habits? CONTENT: How to Practice Healthy Credit Habits\n-------------------------------------\nGood credit habits and good money habits go hand in hand. Spend a little time learning how credit works—and how you can make it work for you. In the meantime, follow these four simple rules for maintaining your best credit score and keeping your credit report in top shape:\n1.  Pay bills on time. Every bill. Every time.\n2.  Keep your credit utilization low.\n3.  Check your credit regularly.\n4.  Apply for new credit only when necessary.\nHow to Spend Less and Start Saving More Money\n---------------------------------------------\nThere are many ways to spend less and save more. Only you know where you can best cut back. For many of us, it's not a matter of sweeping change: It's the accumulation of small efforts. To get your thinking started, consider these incremental changes:\n**Spend cash, not credit.** Budget out cash monthly or every payday to help limit your spending. When the cash is gone, your spending is done. Do you make a lot of online purchases? Use your debit card or load your budgeted amount onto a reloadable prepaid card. Your spending will end when your money runs out.\n**Try your hand at DIY.** Cook at home. Be your own barista. Mix your own cocktails. Take a stab at home repairs instead of calling a contractor. Even if you replace half of your expensive restaurant outings with home-cooked meals, you're likely to come out ahead.\n**Be patient.** Disable your automatic renewals. Ditch your unwanted subscriptions and memberships. Contemplating a large purchase? Make it a policy to leave the store or walk away from your computer for an hour before you complete your transaction to avoid impulse decisions. And don't spend money to save money: A sale is not an urgent event. END
 TITLE: How Can I Improve My Money Habits? CONTENT: Managing Wisely Through Whatever Life Brings\n--------------------------------------------\nBudgeting, saving and spending wisely won't make your life more predictable. You may still encounter an occasional flat tire, job loss or irresistible spending opportunity—in fact, this is practically guaranteed to happen. Again and again. The best thing about cultivating good money habits is that they serve you well over time, through whatever life brings, and you can put them into practice any time. Even starting now. END
 TITLE: Do You Need Credit to Buy a Car With Cash? CONTENT: Is a Credit Check Required When You Pay in Cash?\n------------------------------------------------\nSince you aren't applying for credit in a cash transaction, the dealership doesn't need to access your credit score and report. And in fact, the Fair Credit Reporting Act (FCRA) limits access to your credit information in these types of situations. According to the FCRA, credit reporting agencies may only provide information about you to people who have a valid need: creditors, insurers, employers, landlords and other specified businesses.\nA dealership needs your permission to run a credit score and report. They may ask you for it as part of the sales process, so they can find out what kinds of financing you are eligible for and therefore how much you can afford to pay for a car. Dealers often make money from the financing they arrange, so they have an added incentive to talk you into a loan or lease.\nA dealership might falsely cite the Patriot Act as a reason to run your credit report. But federal anti-money-laundering regulations do not require a dealership to pull your credit on a cash transaction. You may, however, be required to fill out IRS Form 8300 if you make a cash or other lump-sum payment in excess of $10,000.\nWhat's the harm in having a dealership run your credit? While any resulting damage would be slight, if at all, a dealership checking your credit could result in your credit scores decreasing slightly. That's not a reason to avoid applying for credit you need, but it's a good reason to avoid unwanted credit inquiries. And if the dealership is going to use your credit information to try to entice you into financing a more expensive car than you want, then you're much better off declining. END
 TITLE: Do You Need Credit to Buy a Car With Cash? CONTENT: Benefits of Paying for a Car With Cash\n--------------------------------------\nIs cash the best way to pay for a car? Providing you can afford it, paying cash can save you both money and stress. Among the many benefits of paying outright for your car:\n*   **Discipline**: You can't spend beyond your budget if you're limited by the amount of money you have on hand.\n*   **No interest**: According to Kelley Blue Book, the average cost of a new vehicle was $38,723 in September 2020. Financing that entire cost over five years at a low 3% rate racks up more than $3,000 in interest.\n*   **No monthly payments**: You'll still be on the hook for gas, insurance and registration, however.\n*   **You won't be upside down on your car's value**: When you finance a car, your payments are structured to repay interest first, then principal. So, in the early months of owning a new car you may owe more on your loan than the car is worth—especially since a new car begins to depreciate as soon as it's driven off the lot. When you pay cash, you always own the full value of your car.\nThat's the good news. There are also instances when paying cash might not be the best choice for financing a car:\n*   **You want to maintain your savings.** Using all of your available savings to buy a car probably isn't the best strategy. If you don't have ample cash set aside to buy a car—and maintain an adequate emergency fund—you may want to reassess.\n*   **The dealer offers you 0% financing.** A 0% APR car loan would let you pay off only the cost of the vehicle (plus taxes and fees you'd pay anyway) over a period of several years. This would potentially save you thousands in interest and keep you from making a big lump-sum payment, though you'll still need to pay a down payment. If you're so inclined, you could take what you would have spent on a car, invest it, and theoretically earn income on your cash over the period of your loan. If you get a 0% APR loan and make money on your investments, you'll come out ahead. Of course, you could also lose money by investing your cash: Only you can gauge whether the reward is likely to outweigh that risk.\n*   **You can always split the difference.** Suppose you put 50% of the car's cost down and finance the other half. You could have a small monthly payment or a shorter loan term. And you could preserve half of your cash for emergency savings, retirement, investments or even subsidizing your car payments. END
 TITLE: Do You Need Credit to Buy a Car With Cash? CONTENT: How Financing a Car Works\n-------------------------\nTo decide whether using a loan to cover all or part of your car purchase is the right option for you, it may help to understand how financing works.\nFinancing a car involves a few basic steps:\n1.  Set your budget.\n2.  Choose your car (or a few options).\n3.  Figure out your down payment.\n4.  Shop for financing:\n*   Get preapproved for a loan at your bank or credit union.\n*   Research online for the best auto loan.\n*   Work with your dealer.\nAlthough financing options exist for buyers at almost every credit level, the best interest rates and terms go to buyers with very good to excellent credit scores. Lenders will also want to verify your income, to make sure you're able to repay a loan. Having a substantial down payment helps your case. You can use this cash to reduce the loan amount, thus reducing your monthly payments, interest and the risk to your lender.\nIf you're building credit, financing a car can help. Making your loan payments on time adds to your payment history, the most heavily weighted portion of your credit score. Having cash on hand also increases your chances of success. You're unlikely to default if your payments are already covered (or almost covered) by savings. An auto loan also adds to your credit mix: Being able to show that you can manage various types of debt can help you improve your scores. END
 TITLE: Do You Need Credit to Buy a Car With Cash? CONTENT: Other Forms of Car Financing\n----------------------------\nAuto loans aren't the only alternative to paying for a car with cash. Leasing a car lets you drive the car of your choice as a kind of long-term rental—a typical lease term is three years, and you'll usually return it after that time is through. Since you aren't paying to own the car, monthly payments are typically lower than they would be on a loan to purchase. You drive the car only while it's new and (presumably) trouble-free. If you have enough cash on hand to purchase, you can lease instead and pocket the difference. The hitch: You won't build equity. At the end of the lease term, you either purchase your leased car, lease a new car or go carless.\nA car loan uses the car you're financing as collateral. If you default on the loan, the lender will repossess your car and sell it to help defray your outstanding debt. Alternatively, you can use an unsecured personal loan to fund a car purchase. But an unsecured personal loan is likely to carry a higher interest rate than an auto loan, and it still requires a credit check and loan application. Bottom line: A personal loan won't save you time or money versus on an auto loan.\nCan you pay for a car with your credit card? Here, there are a few considerations. First, a dealer may not want to run a credit card transaction that large. Merchants pay fees on credit card transactions, so your purchase could cost more than they want to pay. Second, financing a car on a credit card could be costly for you. Interest rates on credit cards are typically much higher than what's commonly offered on car loans. You may also lower your credit score by inflating your credit utilization, which is the percentage of your available credit being used by outstanding balances.\nOn the other hand, if your dealer is game and your credit limits allow it, you may decide to use a credit card to effectively pay cash for your car. Using your card to pay the dealer for your entire purchase lets you avoid going to the bank for a cashier's check or carrying around wads of cash. As long as you can pay off your balance immediately, it won't cost you money—and may earn you some valuable cash back or rewards from your card company. END
 TITLE: Do You Need Credit to Buy a Car With Cash? CONTENT: Cash Improves Your Buying Options\n---------------------------------\nIf you're thinking about buying a car with cash, you're already ahead of the game in one important way: Having cash in savings for a large purchase opens up valuable alternatives. You may decide to bypass the lending process entirely. You may also opt to use your cash to help secure and pay for a no- or low-interest loan or a lease. To return to our original question, you don't need credit to pay for a car with cash. But having cash can improve your buying options, including the option of using credit to pay. END
 TITLE: How Do You Get a Loan to Start a Business? CONTENT: There are three essential steps to ​getting a small-business loan​:\n1.  Create a business and financial plan.\n2.  Check your business and personal credit.\n3.  Find lenders and apply.\nWriting a business plan and mapping out your business's financials is a critical step. Your plans and expense sheet show lenders (and you, for that matter) how your business will grow: what you need to get started, where your funding will come from, what you can expect in sales and expenses, the experience and skills that will propel your business forward, and what success would mean over the next five years. Because your startup doesn't have a track record, these plans help lenders evaluate its risk.\nStartup funding often comes from multiple sources. For example, if you need $100,000 to launch your business, you might contribute $25,000 from your personal assets, get $25,000 from friends and family who want to invest—or from a crowdfunding campaign—and borrow the other $50,000.\nCredit scores are another key metric. Businesses have their own credit scores that assess creditworthiness based on past behavior, including if the business has any collections, liens, judgments or bankruptcies in its history. For established businesses, a ​good business credit score​ can open doors and help secure favorable loan rates and terms. Your startup, though, may not even have a business credit score yet. If that's the case, lenders will rely on your personal credit score and report. Although requirements vary, you'll generally need a high credit score to get a business startup loan. Since startups are inherently risky, your personal good credit acts as a counterbalance to that risk.\nOnce you have your financials in order and know your credit situation, you're ready to look for a lender—or, more accurately, several. Finding the right financing for your new business may require knocking on a few doors. Fortunately, there are multiple options to explore and resources that can help. END
 TITLE: How Do You Get a Loan to Start a Business? CONTENT: Where to Get a Business Loan\n----------------------------\nBusiness loans are available through banks, credit unions, online lenders and even microlenders that specialize in smaller loans. However, not every potential lender is going to be a fit for your startup business. In fact, many require loan applicants to be in business for at least a year or two before they can be considered for a loan. It's also ideal to get multiple loan offers, if possible, which means you'll probably want to cast a wide net. The more potential lenders you find, the better your chances of getting a loan that works for your needs.\nWhere do you start? Here are a few ideas:\n*   **Your bank or credit union**: If you've opened a business bank account, inquire with your financial institution about business loans and credit. Even if your new business doesn't qualify for the full loan amount you're looking for at your bank, a small loan or line of credit could help. It'll establish a credit relationship for the future, which can help you build your business credit score along the way.\n*   **Business-focused banks**: These can be found in your community or online.\n*   **Online business lenders**: Startups may find online lenders more amenable to lending than regular banks, though interest rates tend to be high.\n*   **Microlenders**: If you need less than $50,000 to launch your business, a microlender like Kiva or Opportunity Fund might be worth exploring. These are nonprofits or alternative lenders looking to help businesses find small loans, often at low interest rates. Many are startup-friendly.\nThe Small Business Administration may serve as a helpful resource when you're searching for loans. The SBA doesn't make loans itself, but it does guarantee small business loans made through banks and credit unions. An SBA guarantee takes some of the risk out of business lending, so working with the SBA can be a real benefit to new business owners. The SBA's LenderMatch program can help you locate a lender, and counseling through its SCORE program can connect you with valuable advice from experienced business owners. The downsides: SBA loans involve a series of requirements, and the application and funding process can be lengthy. END
 TITLE: How Do You Get a Loan to Start a Business? CONTENT: What Do Lenders Look at When Assessing Business Loan Applications?\n------------------------------------------------------------------\nGenerally speaking, a lender looks at your business financials and business credit to decide whether you qualify for a business loan. But when you're applying for a loan as a startup, your business financials and credit alone probably aren't substantial enough to qualify you. Even with established businesses, personal credit scores and histories often play a role in securing business credit. The Federal Reserve's 2020 Small Business Credit Survey found that 88% of small businesses that received financing used the owner's personal credit score to obtain it.\nIf you're planning to apply for startup financing, be prepared to provide your personal credit information in addition to any business credit history and score you may have. You may also want to consider what collateral you can use to secure a loan—and improve your chances of approval. Among established small employers who received financing in 2019, 59% used personal guarantees to secure their business debt, according to the Fed survey. However, if you have business assets—equipment or receivables, for example—you may be able to use these as collateral. Are you concerned that your credit and\/or assets won't measure up? A cosigner who puts up their personal assets and credit history as a guarantee may help.\nEven if your business is pre-revenue, your business plan and financials help round out the picture. By showing your projected revenue, expenses, cash flow and debt, you can help to demonstrate the viability of your business. Furthermore, your experience and insights into the industry can show your ability to lead your business to success. END
 TITLE: How Do You Get a Loan to Start a Business? CONTENT: Additional Business Funding Options\n-----------------------------------\nIf a traditional business loan isn't in the cards for you and your startup, alternative funding may help get your business up and running. The most prevalent option here is self-funding. By using your savings or investments, you may be able to \"bootstrap\" your way to loanworthiness in a few years—or bypass the need for a loan altogether. Just be sure not to wipe out savings for your retirement and emergency fund since doing so can leave you high and dry if your business venture doesn't work out.\nHere are a few alternative ideas you might try for funding your startup outside of traditional lending:\n*   **Friends and family**: If people close to you are willing and able to lend or invest, you can get your business off the ground without a long history or an impressive business credit score. Before you commit to this option, know that defaulting on a loan from a loved one can have major consequences on your personal relationship with them. Get your agreement in writing, and hold up your end of the deal.\n*   **Venture capital**: Courting an early investment from a venture capital firm or angel investor comes with its own challenges and rewards. Venture capital investors are typically looking for an equity stake and an ongoing role in your business. They favor fast-growing businesses with high growth potential. On the upside, venture capital investment isn't debt; you're working with investors and not lenders.\n*   **Crowdfunding**: You can hatch your innovation or new business on Kickstarter or one of many other crowdfunding platforms. Visit each prospective site to get a sense of which offers are successful and how they're structured. Also pay attention to terms: Know what happens if your deal falls through.\n*   **Vendor financing**: If you can sell a vendor on the merits of your business, they may be willing to work with you on financing—by offering credit, a loan or an investment in your company. This may be a viable way to finance equipment or create inventory if you're strapped for cash.\n*   **Personal loans or credit**: If all else fails and you need an additional loan or credit, you may consider using a personal loan or even your personal credit cards to fund your new venture. Just be wary about the risk you're assuming when you use personal credit to fund a new business. If you rack up a large amount of personal debt and the business fails, you could be in real financial trouble. If you use your home or other assets as collateral, you can lose these as well. Believe in yourself but think critically before making this move. END
 TITLE: How Do You Get a Loan to Start a Business? CONTENT: From a Startup to a Savvy Business\n----------------------------------\nYour new business may need capital, but that isn't all it needs to take root and flourish. Going through the process of building a business plan, seeking out lenders and pulling together the financing you need to make your business a reality just might make you a better businessperson—and that's a lasting benefit for you and your business.\nOnce you get the funds you need to get your business started, do everything you can to build and maintain your business credit standing as you go. Check your business credit score and learn more about the factors that determine business credit. That way, the next time you need a business loan, you'll be that many steps ahead. END
 TITLE: Do More People Finance Auto Loans at a Bank or Dealership? CONTENT: Where Are People Financing Their Auto Loans?\n--------------------------------------------\nAlthough banks, credit unions and outside finance companies accounted for more loans and leases overall in the Q2 2020 data, financing a new or used vehicle at the dealership is growing in popularity, reaching 31.1% last quarter. Just a year earlier, captive financing represented just 28.6% of car purchases and leases, versus 64.7% for banks, credit unions and finance companies—a roughly 11% increase in market share.\nA closer look at new car financing may help to explain the trend. Among new car loans and leases, captive financing originating at the dealership dominated: 61.2% of new car loans and leases were made this way. Banks captured 23.9% of the market and credit unions only 10.2%. One reason might be strong incentives for financing at the dealership, including zero-percent financing or rebates.\nThe same kind of captive dealership-based financing—often backed by manufacturer-branded finance companies like Ford Credit or Toyota Financial Services—is not as dominant in the used car marketplace. Here, banks (34.8%) and credit unions (24.9%) financed a larger share of used car loans and leases than dealers did. But notably, \"buy here, pay here\" dealerships catering to buyers with bad credit (more on these later) represented a solid 13% of used car financing. END
 TITLE: Do More People Finance Auto Loans at a Bank or Dealership? CONTENT: What's the Best Way to Finance a Car?\n-------------------------------------\nWhat can we learn from these trends? And, more to the point, where will you find the best financing—at the bank or the dealership? The answer begins with your buying preferences.\nIf you decide to finance your car through your bank or credit union, you can get preapproved before you go car shopping. That way, you know in advance how much car you can afford and you aren't wedded to a particular car company or dealership. You can test-drive as many vehicles at as many dealerships as you'd like. You can also negotiate your best price independent of financing. So, for example, a dealer won't be able to entice you into a more expensive car by offering a longer-term loan to lower the monthly payments. You decide in advance how you're financing and enter the dealership with your details set.\nOn the other hand, financing through a dealership is convenient. You don't have to engage your financial institution in advance or follow up for final approval once you've made your choice. A dealer may shop your application among many banks, credit unions and finance companies, which can result in a great competitive rate. They may, however, take a cut for their services, which can increase your interest rate slightly. In other cases, a dealer might connect you with financing from the car manufacturer's financing arm. To incentivize sales, a dealership may offer zero-percent loans, cash back or other enticements—many of which are sweet deals.\nOf course, all financing opportunities are not created equal. Comparing rates, terms and incentives individually is critical. As usual, buyers with the best credit typically get the best offers. The company that handles your financing will check your credit score and report and will want to know your debt-to-income ratio to ensure you can afford your loan or lease. END
 TITLE: Do More People Finance Auto Loans at a Bank or Dealership? CONTENT: How Your Credit Score Can Affect Where You Finance\n--------------------------------------------------\nGetting a loan or lease can be more challenging if you have fair or bad credit. A lower credit score can translate to higher interest rates, more fees and larger down payment requirements. It also leads some used car buyers to finance through \"buy here, pay here\" dealerships that specialize in in-house loans for people with poor credit. But buyers should be aware of potential pitfalls with this type of dealer financing. In addition to higher interest costs and fees, these loans may also come with a higher risk of repossession.\nWhat's considered a good score for getting an auto loan? It depends on a variety of factors, including which credit scoring agency and scoring model your lender uses. Both FICO® and VantageScore® assign credit scores within a range of 300 to 850, but each has its own criteria for what constitutes fair, good or excellent credit. Additionally, the FICO® Auto Score provides a unique credit score based on your experience with auto financing. You likely won't know which scoring model your bank or dealership will use when evaluating your application, but you can get an idea of where your credit stands by checking your FICO® credit score and credit report before you begin applying for auto financing. You can get your credit report from all three major credit reporting agencies (Experian, TransUnion and Equifax) through AnnualCreditReport.com.\nWhether your credit is stellar or needs a little help, you're likely to find financing options with either a financial institution or a dealer. If your credit score is 600, for example, you can choose from viable, if imperfect, financing options. For buyers with the credit to qualify, manufacturer financing promotions can be too good to pass up—although these promotions come and go seasonally. Also, buyers who qualify for the most attractive promotions can typically secure the most competitive rates from banks and credit unions as well. If you're unable to qualify for an auto loan on your own, you may delay your car purchase until your scores have improved or ask a trusted friend or relative with good credit to cosign a loan with you. END
 TITLE: Do More People Finance Auto Loans at a Bank or Dealership? CONTENT: Knowledge Is Power\n------------------\nThe best advice for prospective carbuyers (or lessees) is to do your homework. Before visiting any dealerships, check with your bank, credit union or an online lending platform to learn more about rates and preapproval requirements. Whether or not you choose to follow through with your financial institution, you'll have a baseline for comparison. Also research online for dealer and manufacturer promotions, so you know what financing incentives might be available. Finally, download your credit score and report. Knowing this information will give you some advance insight into the kinds of rates and terms that might be available to you.\nUltimately, the choice between financing at the bank or the dealership is a personal one. It may depend on what each party has to offer you at the moment you're buying. It may also come down to choosing which party you're more comfortable working with. Bank, credit union, finance company or dealership: Whichever one fits your buying style and makes you the most attractive offer is likely to be the best choice for you. END
 TITLE: What Can You Purchase With HSA Funds? CONTENT: How Does an HSA Work?\n---------------------\nHSAs are tax-advantaged accounts meant for medical expenses that are funded by contributions from you, your employer or both. They can provide a triple benefit in terms of tax savings since you may be able to deduct your contributions, and avoid paying taxes on account interest or investments gains as well as on withdrawals you make.\nWhen you have an approved medical expense, you might use an HSA-provided debit card to pay at your doctor's office, pharmacy or with another approved vendor. Alternatively, your HSA may provide access to online bill payment, checks or a reimbursement process that pays you back for bills and purchases you've covered using other forms of payment.\nAccess to an HSA account may be provided directly through your employer, or you may create one at a bank, credit union or investment company that acts as an HSA administrator. HSA comparison services such as HSA Search can help you find a provider and weigh your options.\nUnlike the money in a flexible-spending account, HSA funds do not need to be spent within a given year. Once you contribute money to an HSA, that money is yours—even if you change employers or health plans. END
 TITLE: What Can You Purchase With HSA Funds? CONTENT: What Can You Pay for With an HSA?\n---------------------------------\nIn addition to big ticket items like deductibles, copays and coinsurance, HSAs can be used to pay for a relatively long list of everyday health-related items. Amazon even has a list of HSA-eligible items you can shop from directly, and tags eligible items in product listings. Here are some examples of products you may be able to purchase with HSA funds:\n*   Sunscreen\n*   Over-the-counter pain relievers, cold medicines and stomach remedies\n*   Air purifiers and filters\n*   Feminine hygiene products\n*   Birth control\n*   First aid supplies, including bandages\n*   Orthotics, orthopedic braces and wraps\n*   Pregnancy and fertility tests\n*   Contact lenses and supplies\n*   Thermometers\n*   Psychologist visits\n*   Acne products\nAnd this is just the tip of the iceberg. The full list of qualifying items is extensive and includes everything from blue light blocking glasses to products that help you quit smoking. Word to the wise: Before spending any HSA money, check with your HSA administrator to make sure your proposed expenses are eligible. Rules can change, and some purchases may require a medical diagnosis to qualify. END
 TITLE: What Can You Purchase With HSA Funds? CONTENT: When Your HSA Is Not the Best Choice\n------------------------------------\nOf course, the list of things you can't use your HSA to pay for is much longer than the list of eligible expenses. Notably, you can't use your HSA account to pay for insurance premiums, cosmetic procedures or veterinary expenses (unless they're for your HSA-eligible guide dog).\nThere are a few additional reasons you might not want to use your HSA to pay for qualified expenses. If you're counting on the money in your HSA to cover high deductibles in the event of a major illness, you may not want to deplete your account. Make sure you're maintaining the safety net you need before you start spending.\nUsing your HSA to pay, even for eligible expenses, can be complicated. The card itself may have restrictions on where you can spend—and on what. For example, your card might not work if you try to use it at a supermarket or convenience store. If you can't run a transaction using your HSA card, you will have to submit your expenses for reimbursement after the fact. It's not the end of the world, but it is an inconvenience that might not be worth the trouble for a few small items.\nUsing your HSA to pay can save you money by using pre-tax dollars deducted from your paycheck and\/or accessing money your employer has provided for just these purposes. But, because your savings are tax-related, they're subject to IRS scrutiny. If you're audited and your expenses turn out to be non-qualified, you could be liable for income taxes and a 20% penalty on the amount you spent. END
 TITLE: What Can You Purchase With HSA Funds? CONTENT: Spending in Good Health\n-----------------------\nUsing your HSA to restock your medicine cabinet or stock up on items like sunscreen and first-aid supplies might make the most sense if you do so in single, dedicated shopping trips, rather than trying to submit receipts for reimbursement every time you buy a bottle of ibuprofen at the grocery store. Using your HSA for beneficial treatment and expenses—as long as you can afford them—is a clearer win. Needed dental treatment, orthopedic supplies or a new pair of glasses are not only valuable; they can be life-affirming.\nIf you don't have an HSA but would like to learn more, do some research, ask your employer for information or look for financial institutions that can offer you an account. While HSAs may not provide a universal cure for all of your healthcare-related costs, they can be a valuable device in your financial toolkit. END
 TITLE: How to Get an FHA Loan CONTENT: What Is an FHA Loan?\n--------------------\nFHA loans have more lenient qualification requirements than a conventional loan, and can be a great option if you have minimal cash savings to put down or less-than-perfect credit. FHA loans are insured by the Federal Housing Administration and issued through administration-approved mortgage lenders, which include credit unions, banks and direct lenders.\nYou may qualify for an FHA loan with a down payment as low as 3.5%. There's also the option to roll a portion of the closing costs into your loan. However, FHA loans can be more costly in the long run due to the mortgage insurance premium you're required to pay to minimize the lender's risk. There are also limits on the amount you can borrow with an FHA loan, depending on where the property is located.\nIn addition to traditional FHA loans, there are four other FHA loan options:\n*   **FHA 203(k) loans**: These are rehabilitation loans that grant you up to $35,000 for home upgrades, improvements or repairs.\n*   **Home Equity Conversion Mortgages (HECM)**: These loans are designed for homeowners age 62 and older and act as reverse mortgages.\n*   **FHA Energy Efficient Mortgages (EEM)**: These loans allow homebuyers to roll the cost of energy-efficient improvements into their mortgage payments.\n*   **FHA Section 245(a) loans**: These mortgages have a graduated repayment structure in which monthly payments increase in amount over time. They cater to borrowers who expect their income to increase. END
 TITLE: How to Get an FHA Loan CONTENT: Who Qualifies for an FHA Loan?\n------------------------------\nThere's no way to know if the lender will approve you for an FHA loan until you apply. However, you should be mindful of these general requirements for this loan program:\n*   **Valid Social Security number**: The lender will ask for your Social Security number to help confirm your identity when you apply.\n*   **Verifiable income**: The lender will request pay stubs and tax returns to confirm your earnings. You may also have to provide bank statements to show you can afford closing costs, the down payment and your monthly mortgage payments.\n*   **A credit score of at least 500**: If you'd like to make the minimum down payment of 3.5%, you'll need a score of 580. But if you can provide a 10% down payment, you may get approved with a score as low as 500. You can check your free Experian FICO® Score☉ to see where you stand and if your credit could qualify you for an FHA loan. If it's not quite where it needs to be, take steps to improve your credit score to give yourself the best shot at getting approved for an FHA loan with a competitive interest rate.\n*   **Minimum down payment of 3.5%**: Your credit score will dictate whether you can put down the minimum. You will need to put down at least 10% if your credit score is between 500 and 579.\n*   **Mortgage insurance premium**: Mortgage insurance equal to 1.75% of the loan amount is due at closing, and can be financed. An additional 0.45% to 1.05% of the loan amount is charged annually and added to your monthly payments. If your down payment was under 10%, you'll be required to pay mortgage insurance for the life of your loan (unless you refinance).\n*   **Debt-to-income ratio (DTI)** **that does not exceed 43%**: Your DTI measures how much of your monthly income is used to pay debt. So, if you earn $5,000 per month and your minimum debt payments total $2,000, your DTI ratio is 40%. Ideally, you want to keep your mortgage payment under 36% of your monthly income. It's possible to be approved for an FHA loan with a DTI that exceeds 43% with certain compensating factors such as a high income or excellent credit scores.\n*   **No recent foreclosures**: You cannot qualify for an FHA loan if you have foreclosures within the past three years.\nSome lenders have overlays, which are additional requirements borrowers must meet to qualify for an FHA loan. Inquire with the lenders you're considering to learn more.\nYou can also contact a HUD-approved housing counseling agency in your community to assess your FHA loan eligibility or learn more about the homebuying process. END
 TITLE: How to Get an FHA Loan CONTENT: How to Decide Whether an FHA Loan Is the Right Choice\n-----------------------------------------------------\nNot sure you should get an FHA loan? These loans have many benefits that make them an attractive option:\n*   **Relaxed qualification criteria**: This is particularly helpful if you have a low credit score or minimal cash reserves on hand to make a down payment and cover closing costs.\n*   **Competitive interest rates**: Conventional loans typically have lower interest rates than FHA loans. However, you can get a far lower rate on an FHA loan than you would on a so-called \"nonprime\" mortgage available to those who have lower credit scores. Also, interest rates are fixed on FHA loans, so your payment will remain the same over the life of the loan.\n*   **Closing costs**: You have the option to roll some of your closing costs into the loan and pay them over the loan term. This can help you keep more cash in your pocket.\nThere are, however, some potential downsides to consider, including:\n*   **Mortgage insurance**: It's mandatory and may be required for the life of the loan.\n*   **Stringent appraisal standards**: Not all properties qualify for FHA loans, and the home you purchase with the loan must be used as your principal or primary residence.\nUltimately, it's up to you to decide if an FHA loan works for your financial situation. Weigh the pros and cons to determine if the benefits of this type of loan outweigh the costs of carrying mortgage insurance. END
 TITLE: How to Get an FHA Loan CONTENT: If you're ready to explore lenders who offer FHA loans, use the HUD lender directory to locate options in your area. Shop around for the best deal before deciding on a lender.\nLenders must follow a set of FHA guidelines, but are allowed to set their own interest rates. This means you may qualify for a better loan offer with some lenders than others.\nWorried about the down payment? There are several first-time homebuyer programs and grants you may qualify for to help you get the funds you need to secure your home loan. You can browse online or ask local real estate agents or brokers who work with a lot of first-time homebuyers. END
 TITLE: How to Get an FHA Loan CONTENT: Prepare for an FHA Loan\n-----------------------\nAn FHA loan may be a viable option if you want a flexible mortgage product that doesn't require high credit scores or a large amount of cash out of pocket. While you will be stuck with mortgage insurance payments for years to come, the benefits could be worth it.\nShop around for lenders who meet your needs and inquire about their eligibility criteria to prepare for the mortgage process. It's also best to check your credit at least three more months in advance when looking to get a mortgage to make sure there are no surprises. END
 TITLE: Should You Get a 15- or 30-Year Mortgage? CONTENT: How Does Your Mortgage Term Impact Cost?\n----------------------------------------\nWhen you pay back a mortgage, your monthly loan payment is split between paying down the principal balance (the amount you borrowed to cover the home purchase) and paying interest. As you pay off your loan, your interest payments are recalculated based on the remaining balance, and over time, less of your monthly payment will go toward interest and more toward principal. This concept is called amortization. Depending on your mortgage term, the amount of each monthly payment that goes toward either the interest or the principal balance can be altered.\nThe length of your mortgage term can affect costs in several ways, but one of the biggest factors is how it can influence your interest rates. The current national average rates stand at around 2.64% for a 15-year mortgage and 3.34% for the 30-year option. The rates for your specific mortgage will vary based on factors like your home's price, your credit score and income.\nAs a result, a 15-year mortgage costs less in the long term, but a 30-year term requires lower monthly payments. The 15-year mortgage's principal will be paid down faster with the shorter timeline and higher monthly payments.\nSuppose you're approved for a $500,000 mortgage with a 10% down payment. For simplicity's sake, let's say the interest rate is 3.5% for the 15-year loan and 4% for the 30-year term (not including closing costs and other fees since these are often paid upfront and not included in the loan amount).\nIn this example:\n*   **Over 15 years**, you'd make a monthly mortgage payment of $3,525, and you would pay about $634,000 by the end of your loan term.\n*   **Over 30 years**, your monthly payment would be $2,456, and you would pay about $884,000 over the life of the loan.\nCheck out our mortgage calculator to crunch the numbers for your own situation:\nMortgage Calculator\n-------------------\n†The information provided is for educational purposes only and should not be construed as financial advice. Experian cannot guarantee the accuracy of the results provided. Your lender may charge other fees which have not been factored in this calculation. These results, based on the information provided by you, represent an estimate and you should consult your own financial advisor regarding your particular needs. END
 TITLE: Should You Get a 15- or 30-Year Mortgage? CONTENT: When Does a 15-Year Mortgage Make More Sense?\n---------------------------------------------\nAs you can see in the above example, the No. 1 benefit of a 15-year mortgage is paying considerably less over the life of the loan and doing so in a significantly shorter timeframe. Going by our previous example, the 15-year loan would save you $250,000 compared with the 30-year loan.\nBut the high monthly cost of a 15-year mortgage is a drawback for many and an impossibility for others. Even if you could afford it now, the higher monthly payment may make things tougher if life introduces new costs or unexpected changes to your budget (think having children, changing or losing a job, or sudden emergency expenses).\nYou also will need a higher credit score for the 15-year loan, but you stand to secure some serious benefits with the condensed timeline in addition to the lower total cost. For instance, you may be able to dodge some fees with a shorter-term loan, and you'll build equity in your home more quickly. A shorter mortgage may also be preferable if you're going to be on a fixed retirement income. END
 TITLE: Should You Get a 15- or 30-Year Mortgage? CONTENT: When Does a 30-Year Mortgage Make More Sense?\n---------------------------------------------\nDespite the higher interest rate on a 30-year mortgage, the longer loan term will mean a much lower monthly mortgage bill, which can free up a significant amount of your money in your budget. That means more you can put into savings, investments and future family expansions. The simple math of having more cash on hand every month can be appealing to many borrowers, despite the increased overall cost of the loan.\nOne of the best opportunities of the 30-year option is the financial flexibility it can afford. While you won't be locked into a higher monthly payment, it's still possible for you to treat your 30-year mortgage like a 15-year mortgage. If you can afford it and choose to do so, you can make higher monthly payments on your 30-year mortgage and expedite the repayment timeline. Since you're making a higher monthly payment by choice, you can always go back to making the required monthly payment if your financial situation changes.\nOpting for the 30-year mortgage can also mean you're able to afford to make investments. You could invest the difference you save on monthly payments and potentially come out ahead over the long term. The return on your investments would have to be higher than your mortgage rate for you to at least break even, however, which could be possible depending on your investment strategy and market factors. END
 TITLE: Should You Get a 15- or 30-Year Mortgage? CONTENT: How to Decide How Much House You Can Afford\n-------------------------------------------\nOf course, your loan's length isn't the only consideration you should make when determining what type of home you can afford. These factors will determine your interest rates, mortgage eligibility and total homeownership costs:\n*   **Your creditworthiness** is an important factor in your interest rates and in meeting your mortgage lender's requirements. You can review both your credit score and report for free with Experian.\n*   **Your debt-to-income ratio (DTI)** measures the portion of your income that goes toward paying your debts, and it's an important factor lenders consider when deciding whether you can afford a monthly mortgage payment. You can be denied a loan if your debt payment would comprise too much of your budget.\n*   **Your down payment** will help set your loan's size and interest rate.\n*   **Other costs**, including property taxes, insurance, building association dues and any repairs or renovations, can all add up in your budget. END
 TITLE: Is Refinancing Harder When You’re Self-Employed? CONTENT: What Do Lenders Look for in Refinance Applications?\n---------------------------------------------------\nMortgages are made based on personal, not business, income—but for self-employed people, the two are closely related. You are considered self-employed by lenders if you have an ownership interest of 25% or more in a business. In general, mortgage lenders weigh the following factors, whether you're self-employed or not:\n*   **Credit score**: Your business credit score is not a factor in refinancing your mortgage, but your personal credit score is. A FICO® Score☉ that's very good (740 to 799) or exceptional (800 to 850) will boost your odds of being approved.\n*   **Payment history**: Lenders will check your credit report, hoping to see a history of making debt payments on time.\n*   **Debt-to-income (DTI) ratio**: This figure reflects how much of your monthly income goes to pay debts. Your _front-end DTI_ measures your monthly housing costs in relation to your gross monthly income; your _back-end DTI_ measures all of your monthly debt payments in relation to your gross monthly income. Mortgage lenders consider both DTIs, and typically want to see a front-end DTI of 28% or less and a back-end DTI under 43%.\n*   **Credit utilization**: Your credit utilization ratio measures the amount of revolving credit you are using compared with your total available credit. If your credit utilization ratio is 30% or more, it can negatively affect your credit scores. A high credit utilization ratio may suggest to lenders that you're having trouble paying your bills and using credit to get by.\n*   **Employment history**: Lenders like to see financial stability. If you work for an employer, the lender will typically want to see you have worked at the same job for at least two years. If you're self-employed, they will want to see you have been in business for at least two years; they may allow exceptions, however.\n*   **Income**: When you're self-employed, your income may fluctuate, which can make lenders nervous about your ability to pay back the loan. Because self-employed people often take lots of business tax deductions, their adjusted gross income (AGI) may be significantly less than their actual income. Both factors mean you'll have to work harder to prove you have adequate, reliable income. END
 TITLE: Is Refinancing Harder When You’re Self-Employed? CONTENT: Options for Mortgage Refinancing When You're Self-Employed\n----------------------------------------------------------\nMost mortgage loans are resold to government-backed companies Fannie Mae and Freddie Mac. Loans that qualify for resale, called _qualified mortgages_, must meet strict criteria. For the self-employed, refinancing into a qualified mortgage may require providing:\n*   Verification that your business exists (such as a business license)\n*   Business and personal tax returns for the past two years\n*   A year-to-date profit-and-loss and balance statement for your business\n*   Your most recent business bank statements\nIf you don't have two years' worth of self-employed tax returns, or if your income has declined or is seasonal, you may want to investigate a _non-qualified mortgage_. These loans, which have looser criteria than qualified mortgages, are often marketed to self-employed people. Non-qualified mortgage lenders may verify your income using bank statements rather than tax returns or take liquid assets (such as investments) into account when assessing your ability to repay the loan.\nIf you have a Federal Housing Administration (FHA)-insured mortgage, consider the FHA's Streamline Refinancing option. Certain Streamline Refinancing options require no income or employment verification. You just need to have made at least six loan payments on your existing mortgage, be current with no late payments, have had the loan for 210 days, and show that refinancing will either reduce your monthly payment or shorten your loan term without increasing your payments by more than $50. END
 TITLE: Is Refinancing Harder When You’re Self-Employed? CONTENT: Finding the Right Refinancing Lender When You're Self-Employed\n--------------------------------------------------------------\nAs you can see, finding the right mortgage when you're self-employed can be tricky. Working with a mortgage broker can help. Brokers work with a variety of lenders to match individuals to the best loan for their needs.\nBecause fees, points and closing costs vary from lender to lender, shopping around is key to finding the best refinancing option. Start with your current lender: They know your financial and repayment history and may be willing to work with you to retain your business, such as by reducing fees.\nKeep in mind that different lenders may assess your financial situation differently, so even if one lender won't refinance your loan, another one might. For example, even if you've been self-employed for less than two years, some lenders will consider your previous experience and income in the same industry in deciding whether you're likely to sustain your income going forward. Lenders may also add some of your business deductions back into your AGI, raising your income and making it easier for you to qualify for a loan.\nAs long as you submit all your mortgage applications within a short period—14 to 45 days depending on the scoring model—multiple applications won't negatively affect your credit score. Aim to get offers from three to four lenders and then carefully compare mortgage fees, interest rates and monthly payment to calculate which offer best fits your refinancing goals. END
 TITLE: Is Refinancing Harder When You’re Self-Employed? CONTENT: Get Your Credit Ready to Refinance Your Mortgage\n------------------------------------------------\nA good credit score goes a long way toward helping you refinance. Here's how to get yours in shape.\n*   **Review your credit report.** Get a copy of your credit report and check it for accuracy. If you spot what you believe to be incorrect or fraudulent information, file a dispute with the credit reporting agencies right away. Since an outstanding dispute can make it harder to get approved for a mortgage, be sure to get any disputes on your credit report resolved before you apply.\n*   **Check your credit score.** If necessary, work on improving your score before you apply to refinance your mortgage. You can help improve your credit score by reducing your credit utilization ratio, paying down debt and making all your payments on time.\n*   **Avoid applying for new credit.** Don't apply for any credit cards or loans in the months before you try to refinance. Whenever you apply for new credit, it generates a hard inquiry into your credit history, which can temporarily lower your credit score. In addition, lenders may view applications for a new credit as a sign that you're having financial trouble and need credit to stay afloat. END
 TITLE: Is Refinancing Harder When You’re Self-Employed? CONTENT: What if Your Refinancing Application Is Denied?\n-----------------------------------------------\nIf your mortgage refinancing application is denied, your lender must tell you the reason in writing. Most often, applications are denied because your credit score is too low, your debt-to-income ratio is too high, your income is insufficient or you don't have a strong employment history.\nIf the lender doesn't specify why your application was declined, follow up to find out. Knowing why you didn't get the loan can help you take action to remedy the situation, such as working to improve your credit score and increase your business income. END
 TITLE: What Is a Draw Period on a HELOC? CONTENT: How Do HELOC Draw Periods Work?\n-------------------------------\nMost HELOCs give you a 10-year draw period in which to use the money. During this time, you can draw as much as you need up to your total available credit line. When the draw period ends, you'll have to repay the amount you drew. For example, if you get a $100,000 HELOC and only draw $20,000, you will only have to pay back the $20,000 plus interest, not the full $100,000 you could have drawn.\nSome HELOCs require you to draw a minimum amount of funds upfront; others do not. To draw from your HELOC funds, you can use a debit card, write a check, get cash from a bank branch or ATM, or electronically transfer the money into your bank account.\nDuring the draw period, your monthly HELOC payments are minimal; typically, you'll only have to pay the interest on the amount you've borrowed. Depending on your loan terms, you may be able to make payments on the loan principal as well or even pay the loan off in full (although some lenders charge a fee if you repay the loan early).\nWhen the draw period ends, your HELOC closes. You then repay the balance of the loan, generally over 20 years, or refinance to a new loan (more on that in a moment). Some HELOCs have a balloon repayment plan, meaning the entire balance—loan principal and interest—is due at the end of the draw period.\nWhat if you miss a payment during either the draw period or the repayment period? There's generally a grace period after the HELOC payment due date. If you pay within this grace period, you may be charged a late fee or other penalty, but the lender won't report the late payment to the credit bureaus, so it won't affect your credit score. If you make the payment after the grace period has passed, or don't make it at all, the lender will report the missed payment to the credit bureaus, likely hurting your credit score. Check the terms of your loan agreement to verify what your grace period is. END
 TITLE: What Is a Draw Period on a HELOC? CONTENT: What to Do Before a HELOC Draw Period Ends\n------------------------------------------\nTo avoid unpleasant surprises, make sure you understand your HELOC's terms and exactly when the draw period ends. Once the HELOC closes, you can no longer draw from it—and you'll start making larger loan payments.\nAs you approach the end of your draw period, confirm the balance you will owe after the HELOC closes, how long your repayment period lasts, and what your monthly payments will be. If you have a variable-rate HELOC, your payments could change during the course of repayment as your interest rate fluctuates; however, most HELOCs cap how much the interest rate can rise at one time and over the loan term.\nIf you need to reduce your monthly payments, the time to explore your options is well before the draw period expires. For example, many lenders will let you convert a variable-rate HELOC to a fixed-rate HELOC, but you must do so before the draw period ends.\nPaying back at least some of the principal during the draw period reduces the total amount you will owe when the HELOC closes. If you pay it all back, you'll have a zero balance at the end of the draw period. In this case, your loan will close—generally with no further payments or action required on your part.\nIf you didn't make principal payments during the draw period, be prepared for a substantial increase in payments after the HELOC closes. Often, borrowers find their payments more than double compared with the interest-only payments they were making during the draw period. Remember, your home serves as collateral for the HELOC—so unless you can cover the loan payments, you could lose your home. END
 TITLE: What Is a Draw Period on a HELOC? CONTENT: Consider Additional Repayment Options\n-------------------------------------\nPaying off the HELOC in full before the draw period ends is the best option, leaving you with zero balance at the end of the loan. Review your budget looking for places you can cut costs and save money to put toward the HELOC balance.\nIf that's not possible, you have several options for refinancing or closing your HELOC before the draw period ends.\n*   **Refinance to another HELOC.** If you have good to excellent credit, you can apply for a new HELOC and use it to pay off the outstanding loan. During the draw period for the new HELOC, you can pay only the interest. However, unless you want to keep kicking the loan-repayment can down the road (and paying a lot more interest in the process), create a plan to chip away at the principal too.\n*   **Refinance to a home equity loan.** Similar to a HELOC, a home equity loan is secured using your home as collateral, and the amount you can borrow depends on your home equity. Unlike a HELOC, a home equity loan is an installment loan repaid in fixed payments over time; you can use it to pay off the HELOC and then pay off the home equity loan.\n*   **Do a cash-out mortgage refinance.** A cash-out refinance replaces your existing mortgage with a new mortgage for more than your previous balance. You'll receive the difference in cash, which you can use for any purpose—in this case, to pay off your HELOC. Mortgages typically have lower interest rates than HELOCs and home equity loans, and if mortgage interest rates have dipped since you originally got your mortgage, this option might save you even more money. But getting a new mortgage eats into your home equity. It can also be expensive, with fees and closing costs that may wipe out any savings.\nWhichever refinancing option you're considering, carefully weigh the costs against the potential savings to see if it makes sense for you.\nWhat if your financial situation has changed for the worse since you got the HELOC, and you're having trouble making payments? If you begin missing payments, your credit score may suffer, making it difficult to qualify for loan refinancing. If you find yourself in this predicament, see if your lender is open to some type of loan modification. END
 TITLE: What Is a Draw Period on a HELOC? CONTENT: How Can a HELOC Affect Your Credit?\n-----------------------------------\nWhen you apply for a HELOC, the lender will perform a hard inquiry into your credit, which can cause a small, temporary dip in your credit score. After you're approved, a HELOC can negatively or positively affect your credit depending on how you use and repay the loan.\nFor example, if you have lots of high-interest credit card debt, you probably have a high credit utilization ratio, which can lower your credit score. Drawing from your HELOC to pay off your credit card balances could reduce your credit utilization ratio and improve your credit score, as long as you don't run up the credit card bills again. Because HELOCs are secured by your home, your FICO® Score☉ (the credit score most commonly used by lenders) won't reflect them in your credit utilization.\nMaking on-time payments both during and after the draw period on your HELOC can also help to boost your credit score. Just be aware your monthly payments will increase when your HELOC closes. If you're not prepared to handle them and miss a payment, it could damage your credit score. END
 TITLE: What Is a Draw Period on a HELOC? CONTENT: Use the HELOC Draw Period Wisely\n--------------------------------\nA HELOC can give you the financial cushion you need to handle a major expense. However, taking out a HELOC is a major decision that could affect your finances for decades to come. Carefully consider the pros and cons, and investigate other alternatives for managing a financial emergency or funding a major project, such as home equity loans, personal loans or credit cards.\nIf you decide a HELOC is right for you, check your credit report and credit score before you apply. You'll generally need a FICO® Score of at least 680 to qualify for a HELOC. If you're not quite there yet, taking the time to improve your credit score can help you qualify for a loan with better loan terms and a larger credit line, giving you more financial power to achieve your goals. END
 TITLE: Why Doesn’t My Mortgage Appear on My Credit Report? CONTENT: Reasons Why Your Mortgage Might Be Missing From Your Credit Report\n------------------------------------------------------------------\nThere are several possible reasons your mortgage might not show up on your credit report.\n*   **Your lender doesn't report to the credit bureaus.** Lenders are not required by law to report to credit bureaus. Although most major banks and financial institutions do report, some (generally smaller lenders) do not. Some lenders report to one or two of the major consumer credit bureaus but not to all three.\n*   **The mortgage is only in your spouse's name.** Unless your name appears on the mortgage, the mortgage will not show up on your credit report, even if you are married and live in the same house. Unfortunately, changing this generally requires refinancing your loan, a costly and time-consuming process.\n*   **There's an error in the loan papers.** Rarely, a simple mistake when filing loan paperwork, such as a misspelled name, can keep your mortgage off your credit report. You might also have a problem if your mortgage is in a different name than you normally use. If you just got married and took out a mortgage under your new, married name, for example, or if you're a Junior but your mortgage documents don't include that suffix, your mortgage may not show up on your credit history. When applying for a mortgage, make sure to use identity info consistent with what's on your credit report.\n*   **There's a delay in reporting.** Lenders typically report to credit bureaus every month. However, it generally takes 30 to 60 days for a new or refinanced mortgage account to show up on your credit report. At times when a lot of people are buying homes or refinancing, it could take up to 90 days.\n*   **You chose a nontraditional financing method.** For example, if you purchased the home directly from its previous owner and are making payments to them (known as seller financing), your payments won't be reported to a credit bureau. END
 TITLE: Why Doesn’t My Mortgage Appear on My Credit Report? CONTENT: How to Add Missing Mortgage Payment History to Your Credit Report\n-----------------------------------------------------------------\nWhat if your mortgage information isn't on your credit report and you've checked all the possible reasons above? Start by contacting your mortgage company to verify that they report to the credit bureaus. Individuals cannot report information to credit reporting agencies, so the only way your mortgage payment history can be added to your credit report is if your lender reports it.\nIf the lender has been reporting to the credit bureaus and they have the correct information about you, such as your name, Social Security number and other identifying details, ask them to contact the credit bureaus to find out why the mortgage isn't appearing in your account. END
 TITLE: Why Doesn’t My Mortgage Appear on My Credit Report? CONTENT: How Does a Mortgage Affect Your Credit?\n---------------------------------------\nAs one of the biggest debts you'll ever have on your credit history, a mortgage can greatly impact your credit, either positively or negatively.\nYour credit score may dip right after you get a mortgage, because you're taking on a big debt and haven't yet shown that you're making payments in a timely fashion. In addition, when you apply for a mortgage the lender makes a hard inquiry into your credit, which can cause a small, temporary decline in your credit score.\nAfter you start to make regular mortgage payments and prove you can handle the loan responsibly, your credit score should begin to rise. However, because your payment history is the single biggest factor in your credit score, just one late payment can have a major negative impact on your credit.\nThe more mortgage payments you miss, the more damage you'll do to your credit score. After 120 days or four consecutive missed payments, many lenders will foreclose on your home. As if losing your home weren't bad enough, foreclosure results in a serious derogatory mark on your credit report and remains there for seven years, and can make it tougher to get another mortgage or other credit in the future.\nIf you've missed a mortgage payment, you may still have time to protect your credit. A late payment typically won't appear on your credit report until 30 days after the due date. If you make a payment after your due date but within that 30-day window, you'll have to pay a late fee to the lender, but the late payment may not be reported to the credit bureaus, so it won't affect your credit score.\nIf your payment is already more than 30 days past due or if you're worried about making your next mortgage payment, reach out to your lender to see what your options are. Suffering a short-term financial setback? You may qualify for a relief program such as mortgage forbearance, which temporarily pauses or reduces your mortgage payments so you can get back on your feet. Due to the widespread financial hardship caused by COVID-19, many lenders are offering such programs right now. If you think your financial situation has permanently changed, you can explore long-term options such as mortgage modification, which allows you to adjust the terms of your existing loan, or refinancing your loan with a different lender to lower your payments.\nTo avoid missing payments on your mortgage, put a reminder or alert on your phone or calendar to give you plenty of advance notice before your mortgage is due. Setting up automatic payments through your bank or mortgage lender can help to ensure you never miss a payment. Just make sure you'll have enough money in your account to cover the payment. END
 TITLE: Why Doesn’t My Mortgage Appear on My Credit Report? CONTENT: Using Mortgage Payments to Build Credit\n---------------------------------------\nPaying your mortgage on time every month can help to build good credit. To make sure your payments are being reported to credit bureaus, check your credit report for free to see if your mortgage is listed in your accounts.\nConsider setting up free credit monitoring so you can keep tabs on how paying your mortgage affects your credit score over the long term. You'll enjoy the satisfaction of owning your own home—and potentially improving your credit score at the same time. END
 TITLE: How Much Does a Mortgage Point Cost? CONTENT: How Much Do the Different Types of Mortgage Points Cost?\n--------------------------------------------------------\nThere are two types of mortgage points you may come across during the homebuying process: origination points and discount points. In both instances, the cost of a point is typically 1% of the loan amount. So if you have a $250,000 mortgage, the cost of one point is $2,500.\n*   **Origination points**: These points are often included in the cost of originating your loan. They don't affect the interest rate on your loan but do allow you to compare costs among mortgage lenders while you're shopping around. This is because one lender may charge more or fewer points than another.\n*   **Discount points**: During the mortgage process, you may be able to pay for discount points in exchange for a lower interest rate. In most cases, one discount point reduces your interest rate by 0.25%. For example, let's say you have a $250,000 mortgage with a 3.5% interest rate. By paying one point ($2,500), you could reduce your rate to 3.25%.\nOrigination points may be negotiable, especially if you've found another lender that charges less. With discount points, on the other hand, it only makes sense to pay them if doing so will save you money in the long run.\nContinuing with the previous example, a $250,000 loan with a 3.5% rate would give you a $1,123 payment for principal and interest. If you were to buy down the rate to 3.25%, your monthly payment would drop to $1,088—a decrease of $35.\nTo find out if that's worth it, you'd divide $2,500 by $35, which tells you that you'd need to remain in the home without refinancing your loan for roughly 71 months, or about six years, to break even. END
 TITLE: How Much Does a Mortgage Point Cost? CONTENT: Is Buying Mortgage Points a Good Idea?\n--------------------------------------\nThere are a handful of things to consider before you decide to purchase discount points. The break-even point is a good place to start when determining whether it's worth it for you, but here are some more specific examples of when you might want to consider it.\n*   **You don't plan to sell or refinance anytime soon.** If you're settling down for a while and rates are low enough that you don't anticipate refinancing your mortgage, you may end up staying in the home long after the break-even point. In this case, it makes sense to spend a little more upfront to save in the long run.\n*   **You have the means to buy points.** Saving for a down payment while also maintaining an emergency fund and contributing toward other goals, including retirement, can be challenging. If you have the cash to spare, it's worth considering using some of it to buy down your rate.\nOn the flip side, there are some situations where it's likely not a good idea to take advantage of discount points:\n*   **You won't be in your home past the break-even point.** If you've run the numbers on how long it'll take to recoup your upfront costs and you anticipate selling the house or refinancing before that point, you'll end up spending more overall if you move forward buying points.\n*   **You don't have the means to make it happen.** Draining your savings account to buy a home can cause problems if you need to make expensive repairs, you lose your job or something else happens and you need access to an emergency fund. If you don't have enough savings to cover both your down payment and an emergency expense, consider holding off on points.\n*   **There are better ways to use the cash.** Even if you have enough money for a down payment and an emergency fund, consider other financial goals that could make a bigger impact than buying down your interest rate. Remember, it can take several years just to break even on points—if you can make better use of that money during that time, use it for that purpose instead.\nCarefully go over all of your options and consider speaking with a mortgage professional to determine if buying discount points is right for you. END
 TITLE: How Much Does a Mortgage Point Cost? CONTENT: Are Mortgage Points Tax-Deductible?\n-----------------------------------\nOrigination points are not tax-deductible because they're a cost associated with originating your loan. However, you may be able to deduct money paid for discount points because it's essentially prepaid interest.\nThe caveat is that you need to itemize your deductions on your tax return, along with regular mortgage interest, to take advantage of the tax savings. If all of your allowable itemized deductions add up to a sum less than the standard deduction for your filing status, it won't make sense to go that route. END
 TITLE: How Much Does a Mortgage Point Cost? CONTENT: Alternative Ways to Save Money on Your Mortgage\n-----------------------------------------------\nPaying for discount points will reduce your monthly payment and potentially save you money over the life of your loan, but it's not the only way to save money on an ongoing basis.\nHere are some other options to consider, which you can use in addition to or in lieu of discount points:\n*   **Improve your credit score before applying.** A mortgage loan is a significant commitment for both you and the lender, and the less risk you pose to creditors, the lower the interest rate you can get. Take some time to get your credit ready for a mortgage before you apply to maximize your savings. Start by checking your credit report and score to see where you stand, and to identify how you can make improvements.\n*   **Refinance your mortgage****.** If you already have a mortgage loan, you may be able to qualify for a lower rate if your credit has improved or if market rates have dropped significantly. Just keep in mind that refinancing a mortgage comes with its own closing costs, so you'll want to compare upfront expenses to the monthly savings to make sure you at least break even.\n*   **Try to get rid of your mortgage insurance.** Lenders typically require mortgage insurance if your loan amount is more than 80% of the home's value. But if you've paid down enough of your balance or your home's market value has increased significantly, you may be able to request that the lender remove the mortgage insurance requirement. This process typically requires an appraisal, which you'll need to pay for out of pocket. Keep in mind, though, that if you have a government-insured loan, the mortgage insurance may not be waived unless you refinance it into a conventional loan.\nMaintain Good Credit After Your Home Purchase or Refinance\n----------------------------------------------------------\nIt's important that you take the time to improve your credit before buying a home or refinancing an existing mortgage loan. But even if you don't plan to borrow money again in the near future, it's critical that you stay on top of your credit for when you do need it.\nExperian's free credit monitoring service allows you to keep track of your credit file through real-time updates. You'll also be able to view your FICO® Score☉ powered by Experian data and your Experian credit report at any time.\nUsing this free service will make it easier to spot potential issues, including fraud, before they do some serious damage. It'll also give you the information you need to maintain a good credit score and make adjustments to your financial habits as needed. END
 TITLE: How Much Does a Mortgage Point Cost? CONTENT: Maintain Good Credit After Your Home Purchase or Refinance\n----------------------------------------------------------\nIt's important that you take the time to improve your credit before buying a home or refinancing an existing mortgage loan. But even if you don't plan to borrow money again in the near future, it's critical that you stay on top of your credit for when you do need it.\nExperian's free credit monitoring service allows you to keep track of your credit file through real-time updates. You'll also be able to view your FICO® Score☉ powered by Experian data and your Experian credit report at any time.\nUsing this free service will make it easier to spot potential issues, including fraud, before they do some serious damage. It'll also give you the information you need to maintain a good credit score and make adjustments to your financial habits as needed. END
 TITLE: What Is a Preapproval Letter? CONTENT: Difference Between Preapproval and Prequalification\n---------------------------------------------------\nAlthough the terms are sometimes used interchangeably by lenders, there are key differences between a mortgage prequalification and a mortgage preapproval.\nA prequalification indicates the lender has reviewed your credit profile and financial information to determine your approval odds. Lenders may use information you provide, or they may access your credit data through a soft inquiry that won't impact your credit score. You will typically need to provide your annual income, housing payment, monthly debt obligations and savings account balance for the lender to review.\nGetting prequalified helps you compare your options, but it's still only the first step in the typically lengthy mortgage process. The lenders will need to analyze your finances much more closely before they'll officially approve you for a loan. If you're having trouble getting prequalified, you can speak with a loan officer to see if there are ways to reverse their decision or you might take it as a sign to move on to another lender.\nThe mortgage preapproval process entails a detailed review of your finances and could take some time. The process is essentially the same as what you'd have to do when officially applying for a mortgage. You will be required to submit financial documentation to the lender for review. Also, expect a hard inquiry on your credit report, which could impact your credit scores (though it shouldn't have much of an impact, if it has any at all).\nHaving a mortgage preapproval in hand is beneficial when home shopping as it may give you a competitive advantage over other buyers. It is not a guarantee your loan application will be approved, but preapproval at least shows the seller you mean business and are likely to secure the financing needed to seal the deal. Furthermore, some sellers require a prequalification or preapproval letter before they will consider or accept your offer. END
 TITLE: What Is a Preapproval Letter? CONTENT: How Does a Preapproval Letter Work?\n-----------------------------------\nIf your loan application is preapproved, the lender issues a letter that's valid for a certain window of time, such as 30, 60 or 90 days. This letter outlines the terms of the offer, including the maximum allowable purchase price, any applicable lending fees and the interest rate the lender has tentatively agreed to extend you.\nWhen you're ready to move forward with the mortgage process, the lender may ask for updated financial documents. Some also pull your credit again to see if anything has changed and may adjust the loan offer. If market conditions have changed, you may be offered a higher or lower interest rate. END
 TITLE: What Is a Preapproval Letter? CONTENT: Does Mortgage Preapproval Affect Your Credit?\n---------------------------------------------\nA mortgage preapproval results in a hard inquiry on your credit report and can lower your credit score by a few points. This shouldn't deter you from shopping around to secure the best rate, though. The score impact is only temporary, and credit scoring models recognize hard credit pulls that are a result of applying with multiple lenders to secure the best possible rate (also called rate shopping). Mortgage inquiries that occur within a brief time period are consequently combined into one inquiry, which helps to minimize score effects. The FICO® Score☉ models merge inquiries made within a 45-day window, and the VantageScore® model allows you two weeks to get rate shopping done.\nSo, you're free to explore what different lenders can offer you without fear of ruining your credit score. You can also opt for a prequalification instead of a preapproval to get a more basic idea of which lenders might be best. END
 TITLE: What Is a Preapproval Letter? CONTENT: How to Get a Preapproval Letter\n-------------------------------\nBefore you start shopping for a mortgage, it's important to know what the lender will need to process your application. Gathering these documents in advance will help expedite the review of your mortgage application so you can get preapproved:\n*   **Proof of identity**: The lender will need a copy of your driver's license or passport and your Social Security number.\n*   **Proof of income**: You will need to provide pay stubs, tax returns and bank statements from the past two years. If you're self-employed, the lender will average the income from these returns.\n*   **Proof of assets and debts**: Lenders want to know that you have the funds to cover your down payment and closing costs. It's equally vital that you have additional funds on hand, also known as reserves, to cover your mortgage if you lose your job or your income goes down. You will also need to disclose any debts that do not appear on your credit report.\nNote that documentation requirements vary by lender and loan type. You can start your application on the lender's website, at a branch or by speaking to a loan officer by phone. Also, know that an application fee may apply, and you will have to authorize the lender to perform a credit check.\nYou could receive a preapproval letter in as little as one business day. If you're self-employed, or your preapproval application requires additional verification, it could take up to two weeks to hear back from the lender regarding your application. END
 TITLE: Does Mortgage Prequalification Affect Your Credit Score? CONTENT: A mortgage prequalification can be a good initial step when you're looking to buy a home. The process varies by lender, but you should expect to be asked for some basic information about your financial situation. For example, a lender might want to know about your income, your monthly bills, how much you've saved for a down payment and how much you want to borrow.\nSome lenders may also assess your credit with a soft inquiry—a type of credit check that doesn't impact credit scores—or ask for your estimated credit score range. You can get a free FICO® Score☉ 8 from Experian to use as an approximation, although mortgage lenders tend to use older FICO® Score models.\nUnderstanding your finances and credit helps a lender determine the loan amount you can afford to pay back and the risk you present as a borrower. Based on the information they see, the lender can prequalify you for different types of mortgages and an estimated loan amount. You may also receive a prequalification letter, which you can share with home sellers and real estate agents to show that you'll likely be able to buy a home. END
 TITLE: Does Mortgage Prequalification Affect Your Credit Score? CONTENT: Can a Mortgage Prequalification Affect Your Credit?\n---------------------------------------------------\nAs long as the mortgage prequalification only asks you to share an estimated credit score, or the lender checks your credit with a soft pull, your credit won't be affected.\nHowever, because lenders generally don't verify your information for mortgage prequalification, it may only provide you with a rough estimate. If you're ready to make a move and show you're serious, you could try to get preapproved for a mortgage instead.\nMortgage preapprovals can be different than prequalifications. They tend to be more rigorous—similar to the actual mortgage application process—and require verification documents, such as copies of pay stubs, bank statements and tax returns. Mortgage preapproval can also require a hard credit check, which means getting preapproved for a mortgage may hurt your credit. You should know, however, that the credit score harm associated with a single hard inquiry, if there's any at all, will be slight and temporary.\nStill, getting preapproved can be a good idea if you're ready to make an offer, as you'll have a more certain idea of the type of mortgage and amount you can qualify for with the lender. Also, in competitive housing markets, being preapproved could give you a leg up with sellers who want to accept offers from buyers they know can follow through on the offer.\n(Know that some lenders sometimes use the terms preapproval and prequalification interchangeably, and you might not get what you expect from a preapproval. If a lender provides a preapproval without verifying the information you shared or checking your credit, it may be less certain and carry less weight than one that considers a detailed financial picture.) END
 TITLE: Does Mortgage Prequalification Affect Your Credit Score? CONTENT: How to Get Your Credit Ready for a Mortgage\n-------------------------------------------\nIn the months leading up to your home purchase, you could take the opportunity to work on improving your credit. Your credit reports and scores can impact your ability to get a mortgage and your mortgage's interest rate, and you want to be in the best position possible. Here are a few things you can do to prepare:\n*   **Check your credit.** If you haven't done so already, check your credit scores to know where you stand. Also, review your credit reports from all three credit bureaus for factors that may be dragging down your scores. Past-due accounts and accounts in collections can have a big impact on your score, so do everything you can to avoid missing payments and to get caught up ASAP if you do. If you have any charge-off accounts on your report, take steps to address them.\n*   **Pay down your credit card balances.** Your credit utilization, which measures how your revolving account balances compare to their credit limits, is another important scoring factor. Paying down revolving balances, such as credit card debt, can lower your utilization rate, which can help your credit scores. Even if you pay your credit card bill in full each month, your balance may be reported at the end of your statement period and result in a high utilization rate. Making payments before the end of your billing period can help you keep your credit utilization low.\n*   **Don't apply for new accounts.** Opening a new credit card or loan can hurt your credit scores because it can lower your average age of accounts and lead to a hard inquiry. New accounts can help you build credit if you're making payments on time, and these short-term setbacks generally aren't a major concern. However, it may be best to avoid opening new accounts in the months leading up to your mortgage application.\n*   **Pay every bill on time.** A late payment can hurt your credit scores, particularly when it first happens. While the lead up to buying a house may be hectic, make sure you don't miss any bill payments. If you don't already do so, you might want to set up automatic payments or alerts for bill due dates. END
 TITLE: Does Mortgage Prequalification Affect Your Credit Score? CONTENT: Monitor Your Credit While Shopping for a Home\n---------------------------------------------\nWhile getting prequalified for a mortgage might not affect your credit scores, you want to make sure other negative marks don't hurt your credit right before you apply for such a large loan. A credit monitoring service could quickly alert you to changes in your credit reports. Experian offers free monitoring of your Experian credit report.\nYou may want to monitor your other two credit reports as well, because mortgage lenders may use all three of your reports and credit scores based on each report. The Experian IdentityWorksSM Premium program has a free 30-day trial and comes with three-bureau monitoring and multiple FICO® Scores for each report, including the FICO® Score version commonly used for home loans. END
 TITLE: How Much of My Income Should Go Toward Rent CONTENT: How Much Rent Can You Afford?\n-----------------------------\nThere are a few ways to determine how much you can afford to budget for monthly rent payments. The approach you take depends on your own personal preferences and financial situation. There's no one-size-fits-all way to budget, and you might end up putting your own spin on one of the following methods. END
 TITLE: How Much of My Income Should Go Toward Rent CONTENT: Create a Budget and Account for Expenses\n----------------------------------------\nAs previously mentioned, creating a budget is a key step in finding out how much you can afford and ensure you don't overspend on housing. It will also help you keep up with other monthly expenses.\nTo start, write down what you earn each month. If you're a business owner or your hours aren't consistent, take an average income from the last three to six months.\nThen, identify all of your expenses from the past few months and categorize them so you can determine how much of your income you spend every month and where it's going. Your budget will help you not only find out how much you can afford in rent but also how much you can put toward other important financial goals.\nIn addition to rent, you'll need to account for other housing-related expenses. For example, many landlords require renters insurance, which covers your personal belongings if they're damaged or stolen. According to the most recent report by the National Association of Insurance Commissioners, the average annual premium for renters insurance was $180.\nDepending on your situation right now, you may also need to spend some money on furnishings to make your new place feel like home. Take some time to research what you'll need and how much it will cost, so you can plan for it. Buying furniture secondhand or accepting hand-me-downs from friends and family can help you reduce these costs. END
 TITLE: How Much of My Income Should Go Toward Rent CONTENT: How to Save Money on Rent\n-------------------------\nRegardless of how much you can afford to spend on rent, it's a good idea to take some time to consider ways you can reduce your monthly cost:\n*   **Move in with a roommate.** Living with someone else isn't always ideal, but it can cut your rent expense in half every month, or even more if you're comfortable living with two or three people.\n*   **Shop around.** When searching for a place to rent, you'll typically find several options at various price points. In some cases, one apartment, home or condo may cost less than a similar one. Do your due diligence and shop around to make sure you get the most value out of your lease.\n*   **Look for move-in specials.** Some landlords may offer special promotions to encourage new tenants to move in. For example, you may be able to get some or all of the deposit requirement waived, or you could get a discount on your first month's rent. As you hunt for a new place to live, keep an eye out for these money-saving specials.\n*   **Sign a longer lease.** Landlords place a lot of value on stability, so you may be able to negotiate a lower monthly rent in exchange for a longer lease.\n*   **Know when to move.** Landlords have a tougher time finding new tenants during the winter, which means they may be more willing to give you a break on rent. In contrast, summer months come with high demand for rentals, so landlords may tend to charge higher rents. END
 TITLE: How Much of My Income Should Go Toward Rent CONTENT: What to Do if You Need Help Paying Rent\n---------------------------------------\nIf you're struggling to pay rent where you are now, you may face eviction if you're not careful. Fortunately, there are some ways to get relief from rent costs:\n*   **Talk to your landlord.** Reach out to your landlord or property manager to find out if they'll offer you some kind of break. Depending on the situation, you may be able to get forbearance or reduced rent for a month or two while you get back on your feet financially. On the flip side, some landlords may not be willing to work with you at all. Either way, it's best to start this process sooner rather than later.\n*   **Look for financial assistance.** Many organizations are designed to help people who are having a hard time with rent payments. You can search and compare programs in your area through the National Low Income Housing Coalition. You may also look for financial assistance for other expenses, which can free up some cash flow for rent. Websites like FindHelp.org and 211.org can help you know where to start.\n*   **Brush up on your rights.** Tenant protection laws can vary based on where you live, but they can help you in certain situations. The U.S. Department of Housing and Urban Development provides a resource that can help you learn more about tenant rights where you live. END
 TITLE: How Much of My Income Should Go Toward Rent CONTENT: Improve Your Credit for a Better Chance of Getting Accepted\n-----------------------------------------------------------\nIt's common for a landlord to run a credit check when someone applies for a lease. While they can't view your credit score, they'll be able to see your credit report and the information that influences your score. If your credit is less than stellar, you may have a hard time getting accepted for the apartment, home or condo you want, especially if other applicants have better credit.\nCheck your credit score to get an idea of where you stand, and review your credit report to see where you can make some improvements. Depending on your situation, it may mean paying down credit card balances, getting caught up on late payments, disputing inaccurate information or any other number of things.\nIf you're currently renting, it's important to stay current on your payments and leave on good terms. Evictions themselves won't show up on your credit report, but collection accounts associated with housing will. Also, your rent payment history and prior evictions may be found on other reports landlords may look at when reviewing your application.\nImproving your credit score can take time, but the sooner you start, the more time you'll have to make an impact by the next time you apply for a lease. END
 TITLE: When Is the Best Time to Buy a House? CONTENT: Seasonality influences the real estate market significantly, and conventional wisdom says spring or summer is the best—or easiest—time to buy a new home. The weather is better, housing inventory booms, and it's easier to move when the kids are out of school. But the ideal time of year to purchase a home depends on which buying factor is most important to you. END
 TITLE: When Is the Best Time to Buy a House? CONTENT: The Most Expensive Time to Buy a House\n--------------------------------------\nHomes are typically most expensive between March and May, according to data from Zillow. Because the warmer months are the most popular time of year for homebuying, competition is steep during this time and buyers are more likely to pay above asking price.\nWith more buyers in the market, you're more likely to encounter bidding wars or watch homes get snatched up before you have a chance to view them. There is a silver lining, however, if you're trying to sell your current home at the same time you're looking for a new one: You're likely to get a better price for the home you're selling during this time. END
 TITLE: When Is the Best Time to Buy a House? CONTENT: Why Economic Conditions Could Be Important\n------------------------------------------\nAnother factor to keep in mind for timing your home purchase is what's happening in the economy. For example, in a recession, regardless of the time of year, real estate markets often turn into buyer's markets where homebuyers have the advantage. Additionally, the Federal Reserve often lowers interest rates during downturns, which results in cheaper mortgages.\nAn economic recession could also translate to lower price tags on homes, and you could face less competition from other buyers. For a homebuyer in good financial shape, these factors can result in big savings. The downside of buying during a recession is that lending requirements may be tighter, so your credit and financial health need to be in solid shape. END
 TITLE: When Is the Best Time to Buy a House? CONTENT: Focus on Your Priorities\n------------------------\nUltimately, the best time to buy a home is a personal decision and should be focused on what's most important to you. Is your priority to get into a new home as fast as possible? Then trying to time the market doesn't make sense, and you shouldn't fret about seasonality of the market.\nIf you're looking for the best deal and aren't in a rush, you may want to pay attention to timing and wait for the off-peak homebuying season in the fall and winter. If having the most inventory to choose from is most important, even if prices are a little higher, you're best off waiting for spring or summer. END
 TITLE: When Is the Best Time to Buy a House? CONTENT: Making Sure Your Credit Is Mortgage-Ready\n-----------------------------------------\nWhen you apply for a mortgage, the lender requires significant amounts of documentation about your financial health, such as your income, debts and assets. They will also check your credit report, which not only helps determine your eligibility for a mortgage but, if you're approved, what your interest rate will be.\nGoing into the mortgage application process with a higher credit score can land you a lower interest rate and save you thousands of dollars over the life of the loan. That's why it's wise to spend at least a few months getting your credit ready for a mortgage before you apply. This includes ensuring you make all debt payments on time, pay down credit card balances and check your credit report to ensure all the information is accurate. END
 TITLE: When Is the Best Time to Buy a House? CONTENT: Get Preapproved First\n---------------------\nBefore you start viewing homes, it's recommended to get preapproved with a lender. This entails starting the application process, submitting all the required documentation and agreeing to a credit check. The lender will review everything and, if you're preapproved, you'll receive a letter stating how much you're preapproved to borrow and what your loan terms would be. This doesn't commit you to accepting any offers, and you can do this with multiple lenders to compare rates and terms.\nOne benefit of preapproval is that it helps you understand how much home you can afford, so you know what price range of properties are within your budget.\nIt also indicates to the seller that you're a serious buyer who has already been screened by a lender. If you're in a competitive market or season, and multiple buyers submit offers, those with preapproval letters may be favored since they've already taken this important first step.\nThis is different from getting prequalified, which is less rigorous and typically doesn't require a credit check. Instead, you submit some basic information and get an estimate of how much you could potentially borrow. Prequalification is better than nothing, but getting preapproved is preferable since it gives you a more accurate budget and can help you close a deal faster. END
 TITLE: When Is the Best Time to Buy a House? CONTENT: Get Familiar With Your Credit Now\n---------------------------------\nNot sure where your credit currently stands? Before you begin the process of applying for a mortgage or shopping for a home, we recommend checking your credit and keeping an eye on it for at least a few months. It's free to monitor your credit with Experian, which enables you to track changes in your score and learn how to improve it. While this can take a little extra effort, it can help improve your chances of getting approved for a mortgage, and at a competitive rate that translates into significant savings in the long run. END
 TITLE: How Does a HELOC Affect Your Credit Score? CONTENT: What Is a HELOC?\n----------------\nA HELOC is a revolving line of credit that allows you to borrow against the equity in your home. The amount you can borrow is determined by the assessed value of your home, minus the remaining balance on your mortgage. And you can use the funds as you see fit.\nMost lenders cap HELOCs at 60% to 85% of the home's value. They will also evaluate other factors, including your creditworthiness, to determine the line of credit. To illustrate, if your home is currently worth $420,000 and the outstanding balance on your mortgage is $150,000, you have $270,000 in home equity. In this case, the lender may offer you a HELOC of up to $229,500, assuming you meet other qualifying criteria.\nHELOCs operate similar to credit cards: You can borrow as much as you need up to your limit. Unlike credit cards, HELOCs have a set \"draw period,\" typically 10 years, during which you can access funds. During that time you'll make interest-only monthly payments on what you borrow, though you can usually add extra principal to your payments. When the draw period ends, the lender will generally spread the principal payments over 20 years, or you can refinance the loan.\nHELOCs are not the same as home equity loans, however. While a home equity loan is also based on the equity you've built in your home, it is an installment loan rather than a revolving line of credit. This means the lender disburses all the funds at once, and you must repay them over the loan term. Home equity loans also typically have a fixed interest rate, but the rate on HELOCs are usually variable. END
 TITLE: How Does a HELOC Affect Your Credit Score? CONTENT: HELOCs and Your Credit\n----------------------\nThe impact a HELOC has on your credit score depends on how you use the funds and manage the account. You can help your score by making on-time payments on your HELOC. Like with any credit account, however, if you're late on a payment your score will suffer.\nIf you're using a lot of the available credit on your credit cards, you likely have a high credit utilization ratio that is hurting your score. Using your HELOC to pay off those credit card balances—as long as you keep the balances at zero going forward—will lower your utilization and can give your scores a boost.\nOne common misconception about HELOCs is that the balance figures into your credit utilization ratio. But because a HELOC differs from other credit lines in that it is secured by your home, FICO® (the credit score used most often by lenders) is designed to exclude HELOCs from revolving credit utilization calculations.\nAnother thing to keep in mind: Your lender will perform a hard credit inquiry when you apply for a HELOC. Your score may drop by a few points (if at all), but the impact diminishes over time. END
 TITLE: How Does a HELOC Affect Your Credit Score? CONTENT: Pros and Cons of HELOCs\n-----------------------\nThere are a few key benefits to getting a HELOC:\n*   **Lower interest rates**: HELOCs generally have lower interest rates than credit cards and unsecured loan products because they are secured by your home. This means your home is used as collateral and protects the lender if you default on the loan.\n*   **Access to large amounts**: You may not have a lot of luck borrowing large amounts of cash if you apply for a credit card or personal loan. However, a HELOC gives you a better shot at getting approved if you have a large sum of equity in your home and meet the lenders' other qualification criteria.\n*   **Flexible**: You can draw as much as little as you need, up to the amount of available credit with a HELOC. This means you will only be responsible for interest on the funds you actually use. Installment loans don't give you this luxury: You have to pay interest on the total amount you borrow. For example, if you get a $80,000 HELOC and only use $20,000, you will only make payments on the $20,000 plus interest. But if you get a loan for $80,000, interest will be assessed on the entire amount.\nThere are some significant drawbacks to consider, however:\n*   **Lower equity in your home**: HELOCs reduce the amount of equity in your home. This could be problematic if your home value drops substantially and you decide to or need to sell it.\n*   **Higher payments**: Once your draw period ends, you'll begin making payments on the principal—which will be much higher than the interest-only payments you'd made up to that point. If you can't make the new monthly payments, you could lose your home.\n*   **Putting your home at risk**: If you're not sure you'll be able to make the payments on your loan—and thus hold on to your home—a HELOC is probably not a good choice. END
 TITLE: Selling Your Home With a Second Mortgage CONTENT: Know What Type of Second Mortgage You Have\n------------------------------------------\nBefore you take any steps toward selling your house, look carefully at your mortgage documents to understand the type of loan you are working with.\n*   **Home equity loan**: The bread and butter of second mortgages is the home equity loan, a one-time installment loan based on the equity you've accrued in your home. With this loan, similar to a first mortgage, you repay the amount borrowed over a set period of time often in fixed monthly payments. Each payment goes toward a portion of the interest costs and your loan balance.\n*   **Home equity line of credit (HELOC)**: A HELOC is a credit line you can draw from with a maximum borrowing limit. A type of revolving credit similar to a credit card, a HELOC allows you to repay and borrow repeatedly up to your credit limit. END
 TITLE: Selling Your Home With a Second Mortgage CONTENT: Assess Whether You Will Make a Profit by Selling\n------------------------------------------------\nBefore you decide whether or not you will sell your house, you'll want to get an appraisal of your home and weigh its appraised value with the current amount owed on both of your mortgages. Consider how much you might get for your home given current market conditions, and then see if the profit will help you meet your next homeownership goals. For example, if you want enough for a 20% down payment on your next home, you'll need to compare the likely profit on your current home with the estimated sales price of your next home to see if that's doable.\nIf you find that you won't make enough selling your home to pay off your debts, or to buy your next property, you may want to wait for market conditions or your financial situation to shift before you move forward with selling. END
 TITLE: Selling Your Home With a Second Mortgage CONTENT: Find Out if Your Mortgage or HELOC Is Subject to Prepayment Penalties\n---------------------------------------------------------------------\nWhile prepayment penalties are rare these days, some lenders do charge them. Prepayment penalties usually only apply to the first two to three years of a home loan, so this information is especially important if you want to sell your home soon after taking out a second mortgage. You'll want to factor these penalties into the total amount you still owe, as most penalties are a percentage of the outstanding loan amount—generally up to 2% of the total. Take a close look at your mortgage loan documents and talk to your lender if you still have questions. END
 TITLE: Selling Your Home With a Second Mortgage CONTENT: Talk to a Financial Advisor and Hire an Experienced Agent\n---------------------------------------------------------\nIf you've assessed all of the above points and still aren't sure whether selling your home with a second mortgage is a good idea, try seeking the help of a financial advisor who can give you more insight. When it's time to sell your home, an experienced real estate agent who knows the market well in your community can help you get the most for it to help you meet your financial goals. END
 TITLE: How Do Mortgage Points Work? CONTENT: What Are Mortgage Points?\n-------------------------\nThere are two types of mortgage points:\n*   **Origination points** are part of the many fees you may pay a mortgage lender. This type of mortgage point doesn't affect you beyond being a cost associated with getting your loan. Understanding origination points may help you comparison shop lenders to find one with the lowest fee and negotiate the fee amount.\n*   **Discount points** are points you can buy to lower the interest rate on your mortgage. Discount points are a form of prepaid interest, so buying points when you first take out your loan can lower your monthly payment and overall cost of borrowing. Each discount point costs 1% of your loan amount.\nFor our purposes, let's focus on discount points. END
 TITLE: How Do Mortgage Points Work? CONTENT: What Are the Benefits of Mortgage Points?\n-----------------------------------------\nThe main benefit of buying mortgage points is reducing your loan's interest rate and thus the amount you'll pay over the life of the loan. Generally, each point lowers your interest rate by 0.25%, although the exact amount can vary.\nLowering your mortgage interest rate can decrease your monthly payments, making it easier to manage your budget. Additionally, the cost of the points could be an itemizable tax deduction because you're prepaying mortgage interest. If you meet IRS requirements, you could take the entire deduction during the year you paid the points. Otherwise, you may be able to claim the deduction over the lifetime of your loan. END
 TITLE: How Do Mortgage Points Work? CONTENT: How to Calculate Mortgage Points\n--------------------------------\nBefore you buy mortgage points, calculate the break-even point—when your savings from receiving a lower interest rate equal the cost of the points.\nFor example, if you're looking at a $300,000 mortgage, each point will cost $3,000. Say the mortgage has a fixed-rate, 30-year term and 4.5% interest rate, and the point you buy lowers the interest rate to 4.25%.\nAs a result of buying the point, your monthly payment will decrease from $1,520 to $1,476, a savings of $44 per month. Divide the $3,000 by $44 and you'll find it takes 68 months (or 5.7 years) to break even.\nIf you think you may move or refinance before 68 months, buying mortgage points won't have much of a benefit. But if you expect to be making the mortgage payments past your break-even point, mortgage points could save you money.\nFortunately, you can search online and find calculators that can do the math for you. The hard part may be deciding how long you're going to stay in the home. END
 TITLE: How Do Mortgage Points Work? CONTENT: Should I Buy Mortgage Points?\n-----------------------------\nMortgage points may not be right for every homebuyer. Figuring out the break-even point is a good start, but there's more to consider before buying points. For example, you'll need to come up with the money to pay for the points.\nAlthough a point generally lowers your interest rate by 0.25%, the reduction per point can vary depending on the lender, type of loan and market conditions. Make sure to run the numbers that apply to the specific mortgage you're considering.\nEven when you plan to pay for points, you should still get competing mortgage offers to see which rate and terms are best. Paying for points from one lender could decrease your rate, for example, but it could still end up higher than a competitor's offer.\nYou may find that the value of each point from the same lender changes as you compare types of loans. Additionally, if you're considering an adjustable rate mortgage, look to see if the lender will continue to apply the interest rate reduction after your initial fixed-rate period ends.\nAll that said, the simplest and easiest solution may be to simply put money toward a bigger down payment. END
 TITLE: How Do Mortgage Points Work? CONTENT: How a Good Credit Score Can Lower Your Interest Rate\n----------------------------------------------------\nBuying mortgage points isn't the only thing that can impact your loan's interest rate. You may get offered different rates depending on the lender, type of loan and how much money you put down. Additionally, your credit can have a direct impact on your mortgage rate.\nFor example, using the FICO Loan Savings Calculator, you can see how increasing your FICO® Score☉ can lead to lower interest rates. For a $300,000, 30-year fixed-rate mortgage, the national average rate is currently 4.378% for those with a FICO® Score in the 640 to 659 range. This translates to a monthly payment of $1,498.\nHowever, increasing your credit scores to the 680 to 699 range would bring your rate down to 3.734% and monthly payment down to $1,387. To buy the same rate change, you'd have to purchase 2.576 mortgage points at a cost of $7,968.\nLearn more about improving your credit, and ideally start working on your credit long before you buy a home. END
 TITLE: How Do Mortgage Points Work? CONTENT: Mortgage Points Are Only Part of the Calculations\n-------------------------------------------------\nWhile purchasing mortgage points can lower your interest rate and may save you money, keep the big picture in mind as you plan your purchase. If you have time, improving your credit and saving up for a larger down payment can be important steps that could save you even more. Then, shop around and compare offers to find the loan that will cost you the least overall. END
 TITLE: How Do I Get a Mortgage Forbearance? CONTENT: What Is Mortgage Forbearance?\n-----------------------------\nMortgage forbearance is a temporary change in payment terms negotiated with your mortgage lender. Depending on the terms of the forbearance agreement, your monthly payments may be reduced or even suspended altogether for a period of time, typically no more than 12 months.\nMortgage forbearance doesn't permanently alter your mortgage, and its terms provide for eventual repayment of the funds you're excused from paying during the forbearance period. Repayment is typically handled in one of three ways:\n*   **Reinstatement**, in which you pay a lump sum at the end of the forbearance period, covering the full amount by which your payments were reduced plus interest and possible fees, before resuming your original payment terms.\n*   A **repayment plan**, which divides the total amount you were excused from paying (plus interest and possible fees) into installments and adds them to your regular monthly mortgage payments. The number of repayment installments is negotiable and will depend in part on your ability to make payments. As with any loan, however, stretching out the number of installments reduces the amount of each installment, but adds to the total amount of interest you'll pay.\n*   **Mortgage modification**, which restructures the terms of your loan permanently to reduce your monthly payments and make it easier for you to keep your account current. In a modification, any amount you were excused from paying during a forbearance period is added back into the total you owe and factored into the new payment structure. Mortgage modification can extend the repayment period on your mortgage by a number of months and add significantly to the total amount you'll pay over the remainder of the loan.\nWhen your lender structures a forbearance agreement for you, it also agrees not to foreclose on your home during the forbearance period, as it could if you made incomplete payments without a forbearance agreement. END
 TITLE: How Do I Get a Mortgage Forbearance? CONTENT: To find out whether forbearance is an option for you, reach out to your mortgage lender, using the contact phone number on your payment ticket book or payment website, explain your situation and ask about forbearance options.\nIt's not uncommon for forbearance discussions to begin after a borrower has already missed one or more mortgage payments. But missed payments hurt your credit score more than any other factor, so it's in your interest to start forbearance discussions before you miss any payments, if possible.\nIf your financial hardship is related to a natural disaster, fire or other catastrophe, it's important to contact your lender as soon as possible; the lender may have a time-limit requirement for notifications on event-specific forbearance requests. END
 TITLE: How Do I Get a Mortgage Forbearance? CONTENT: Who Can Get a Mortgage Forbearance?\n-----------------------------------\nWith the exception of emergency measures discussed below, mortgage forbearance is not a legal right. Lenders grant forbearance at their discretion. Before doing so, they will expect you to provide evidence that you'll be able to hold up your end of the deal. The specifics each lender requires may vary, but they'll likely seek much of the same information they required when considering your original mortgage application, such as:\n*   Proof of income (pay stubs, tax returns and so on)\n*   Monthly expenses, including all debt payments (for purposes of calculating your debt-to-income ratio)\n*   A list of any assets (savings accounts, investments) you could tap to cover your expenses\nYour lender may refer to your credit score when considering your request for mortgage forbearance. As a creditor with whom you have an ongoing relationship, your mortgage issuer is legally authorized to monitor your credit score as a matter of course. So in this case, a formal credit check (and accompanying hard inquiry, which can temporarily lower your credit score) may not be necessary. A higher credit score will likely be taken as a sign of good debt management skills, and typically works in favor of a forbearance request.\nBecause mortgage forbearance is designed to provide temporary payment relief, the lender will also want an explanation of your current hardship and when you expect it to end.\nIt will help your case considerably if you can point to a firm milestone several weeks or months ahead that will enable you to resume your regular payments (and repay your excused payments): Documenting a forthcoming tax refund, resumption of seasonal work, disposition of an inheritance, sale of a property or any other event that can be expected to improve your cash flow will work in your favor.\nIf your hardship is more open-ended, be straightforward with your lender about when you can reasonably expect to resume regular payments. If it's unrealistic to expect to be back on track with regular payments within 12 months, consider seeking a permanent mortgage modification instead of a forbearance.\nForbearance and repayment are typically less costly over time than mortgage modification, but if a modification becomes necessary to structure your repayments at the end of your forbearance period, you could pay more in the long run than if you'd skipped forbearance and sought a modification to begin with. END
 TITLE: How Do I Get a Mortgage Forbearance? CONTENT: How Does Mortgage Forbearance Affect Your Credit?\n-------------------------------------------------\nUnder normal circumstances, payments that are skipped or only partially paid during a mortgage forbearance period technically violate the original terms of your mortgage loan agreement, so even though your lender agrees to the forbearance plan, they may report your payments as delinquent to the national credit bureaus. They are not obligated to report the payments as delinquent, however, and not all lenders do. If they do, payments marked as delinquent will appear on your credit report, and your credit scores will likely suffer as a result.\nHowever, the Coronavirus Aid, Relief and Economic Security (CARES) Act offers relief to borrowers who are seeking forbearance due to the coronavirus crisis but are worried about the impact to their credit: Mortgage accounts in forbearance as a result of COVID-19 cannot be reported negatively to the credit bureaus by lenders.\nTypically, lenders may or may not report your account as being in forbearance during the forbearance period. If they do report it, a note will appear on your credit report indicating as much, and some credit scoring models may also dock your credit score during the forbearance period and for some period of time afterward. For those requesting forbearance due to the coronavirus, however, the three credit bureaus (Experian, TransUnion and Equifax) have enacted a crisis response plan that enables lenders to report accounts as in forbearance as a result of a natural or declared disaster.\nAvoiding foreclosure—in addition to preventing the upheaval it can cause in your life—will also help keep your credit in good standing. Foreclosures have a negative impact on your credit. END
 TITLE: How Do I Get a Mortgage Forbearance? CONTENT: Special Mortgage Considerations for COVID-19\n--------------------------------------------\nIf you're dealing with income loss or other hardship related to the COVID-19 pandemic and your mortgage is one of the 95% of American single-family home loans backed by Fannie Mae or Freddie Mac, special emergency rules apply. You can receive forbearance of your mortgage payments for up to 12 months, after which your lender must work with you in an effort to come up with a manageable repayment plan (including possible modification of your original loan agreement). Consult your lender about this option and ask about any other COVID-19 dispensations they may have, or that may be mandated in rapidly evolving state and federal laws. Keep in mind that this option does not occur automatically: You must be proactive and contact your lender to apply for assistance.\nIf you're dealing with a temporary financial hardship, mortgage forbearance can lift a major source of stress and buy you precious time to get back on your feet. END
 TITLE: How to Buy a Foreclosure if You Have Bad Credit CONTENT: How Does a Foreclosure Sale Work?\n---------------------------------\nA home foreclosure occurs when a lender seizes a house for purposes of reselling it after a buyer fails to keep up with their mortgage payments. While it's bad news for the ousted borrower, foreclosure sales can provide major bargains for homebuyers. Lenders are typically eager to unload foreclosed properties at auction or to sell them directly to buyers, sometimes at prices below market value.\nBuying a foreclosed home entails considerable risk, due to their being sold in as-is condition: Foreclosed homes may have been unoccupied for months prior to resale and may be subject to neglect or even vandalism by evicted former occupants. For this reason and more, it's usually best to work with a mortgage broker or real estate agent who's well-versed in handling foreclosed property sales. END
 TITLE: How to Buy a Foreclosure if You Have Bad Credit CONTENT: Buying a Foreclosed Home With Bad Credit\n----------------------------------------\nEven under the best of circumstances, the risk inherent in foreclosed properties can make it difficult to buy one with traditional mortgage financing. It can be even harder if your credit is less than ideal, but that doesn't mean it isn't worth a try.\nIf you're a first-time homebuyer planning to use your purchase as your primary residence and your credit score is 500 or better, it's worth investigating a Federal Housing Administration mortgage, better known as an FHA loan. These loans offer generous borrowing terms but also come with fairly strict qualification requirements: Some foreclosed properties are ineligible for purchase with FHA loans, and you'll need a down payment of at least 20% of the property's appraised value if your credit score ranges between 500 and 579. If your credit score is 580 or better, a 10% down payment is required.\nIf mortgage financing proves unfeasible, there are a couple alternatives to consider:\n*   **Cash payment**: Paying cash is the preferred method of many real estate investors, so lenders are comfortable with cash purchases. In markets where foreclosure sales are soft, lenders may even negotiate a lower sale price in exchange for a cash sale. Of course, access to sufficient cash to buy even a bargain-priced foreclosed home outright is a tall order for many potential buyers.\n*   **Hard-cash lenders**: If you own real estate or other property worth at least as much as the purchase price on your chosen foreclosure, a hard-cash loan may be an option. These loans, which use your property as collateral, are highly risky: They typically come with high interest rates (25% is not unusual) and short repayment periods (five years or less). Not only that, failure to pay off a hard-cash loan could result in the loss of the property used to secure it.  \n    Hard-cash lenders typically do not check credit scores, however, and their approval process is often quicker than that of a mortgage loan. So if you're buying a foreclosure as an investment and are confident you can get it to generate sufficient cash flow in time to cover the loan, a hard-cash loan could work for you even if your credit is in bad shape. END
 TITLE: How to Buy a Foreclosure if You Have Bad Credit CONTENT: Improve Your Score Before Buying a Home\n---------------------------------------\nResourcefulness may enable you to swing a foreclosure purchase with bad credit, but there's no doubt you'd have better options—including the potential for borrowing from multiple sources at more competitive interest rates—if your credit score were in good shape.\nThat's why, whether you're buying a foreclosure, purchasing from an existing owner or buying a brand-new home from a builder, it's a good idea to go into the process with a clear understanding of your credit standing. Checking your credit reports and credit score before you apply for a mortgage or other financing is a great way to start.\nIf it's lower than you'd like, you can take action to improve your credit score. Depending on your score and financial situation, you may be able to bring about a significant score increase in one year or less by adopting credit habits that promote score improvement.\nCredit scoring firm FICO says the following factors matter most in its score calculations:\n*   **Timely payments**: Paying bills on time helps your credit score, and late or missed payments are the single biggest factor that can lower it. Payment history accounts for as much as 35% of your FICO® Score☉ .\n*   **Credit usage**: Experts recommend using no more than 30% of your total credit card borrowing limit to avoid lowering credit scores. Also known as your credit utilization ratio, your credit usage rate is responsible for 30% of your FICO® Score.\n*   **Length of credit history**: Your FICO® Score tends to increase over time. You can't accelerate the process if you're a new credit user but establishing a record of timely payments can help you build up your scores as your credit history increases. Length of credit history accounts for up to 15% of your FICO® Score.\n*   **Credit mix**: Credit scores take account of all your debt and the different types of credit you use. The FICO® Score tends to favor a mixture of loan types, including both installment credit (loans with fixed monthly payments) and revolving credit (such as credit cards, with variable payments and the ability to carry a balance). Credit mix can influence up to 10% of your FICO® Score.\n*   **Recent credit activity**: Applying for loans and credit cards triggers hard inquiries, which keep track of when lenders check your credit score for use in lending decisions. Hard inquiries typically lower your credit score by a few points, but as long as you continue to pay your bills on time, scores usually rebound within a few months. (Checking your own credit triggers a soft inquiry, which does not affect your credit score.) Recent credit activity contributes about 10% of your FICO® Score.\n*   **Derogatory information**: Certain credit report entries can severely lower credit scores for extended periods of time, depending on the nature of the information. The negative impact of these entries diminishes over time, but initially at least, they can drive down your credit score and keep it down for months or even years. Because these entries are not found in all credit reports, FICO doesn't assign them percentage weights.\nWhile it's possible to purchase a foreclosed home when you have bad credit, taking steps to improve your credit scores may prove less difficult—and more practical in the long term. END
 TITLE: Should I Check My Credit Before Renting an Apartment? CONTENT: How to Check Your Credit for Free\n---------------------------------\nYou can get a free copy of your own credit report every 12 months from each of the three credit reporting agencies (Experian, TransUnion and Equifax) through AnnualCreditReport.com. Alternatively, you can get free access to your credit report and FICO® Score☉ through Experian.\nIf your credit is in great shape, you'll likely have a good chance of getting an apartment application approved. But if your credit report has some negative items, it's a good idea to work on addressing them before you submit your lease application. END
 TITLE: Should I Check My Credit Before Renting an Apartment? CONTENT: Why Do Landlords Check Your Credit?\n-----------------------------------\nWhile you're not borrowing any money with a lease agreement, your credit history can help landlords determine how likely you are to make on-time payments every month. As a result, landlords typically run a credit check to review your past borrowing and repayment habits.\nLandlords typically look for certain items that indicate you could be a risky tenant, including:\n*   Past-due payments\n*   Collection accounts\n*   Rental history\n*   Debt inquiries\n*   Bankruptcy status\nThey may also run separate checks to view your criminal history, evictions and other factors that may impact your odds of getting approved. END
 TITLE: Should I Check My Credit Before Renting an Apartment? CONTENT: What Credit Score Do You Need to Rent an Apartment?\n---------------------------------------------------\nThere's no universal minimum credit score required to rent an apartment. Credit requirements can vary based on the landlord, location and other factors. If you've found a listing you like, ask the landlord about their credit expectations before you apply to avoid wasting time and save yourself the application fee, if applicable.\nWhile some landlords prefer renters with good credit, a score in the fair or very poor range won't necessarily disqualify you from finding an apartment. As you check your FICO® Score, here are some ranges to help you know where you stand:\n*   **Exceptional**: 800 to 850\n*   **Very good**: 740 to 799\n*   **Good**: 670 to 739\n*   **Fair**: 580 to 669\n*   **Very poor**: 300 to 579\nGood credit or better typically means you manage your credit relationships well, while fair credit may mean that you've made one or two credit missteps in the past. If you have very poor credit, it could mean you have some significant negative items on your credit report, which could make it difficult to get an apartment. END
 TITLE: Should I Check My Credit Before Renting an Apartment? CONTENT: Options for Renting an Apartment When You Have Bad Credit\n---------------------------------------------------------\nIf your credit score isn't in good shape or you don't have a credit history at all, it can be challenging to find a landlord willing to lease an apartment to you. Here are some things you can do to offset your bad credit and hopefully alleviate a landlord's concerns:\n*   Pay more upfront, such as a larger security deposit or one or two months' worth of rent.\n*   Have a creditworthy cosigner apply with you.\n*   Find a roommate who has good credit.\n*   Show documents that prove a responsible rental history, on-time utility payments and consistent income.\n*   Provide letters of recommendation or references from previous landlords.\n*   Search for apartments that don't require a credit check.\nAlso, consider asking the landlord if they have specific requirements for tenants with bad credit. Depending on your financial situation and rental history, it may take more time to find the right fit, but it is possible. END
 TITLE: Should I Check My Credit Before Renting an Apartment? CONTENT: Tips for Improving a Bad Credit Score\n-------------------------------------\nIf you have time before you need a new apartment, try to work on improving your credit before you start looking at listings. Checking your credit report will give you an idea of which areas you need to address, but here are some specific steps you can take:\n*   **Pay on time.** If you have any credit accounts with past-due payments, get caught up as quickly as possible, and make it a goal to make every payment on time going forward.\n*   **Keep credit card balances low.** Your credit utilization—your card balances relative to your total credit limit—is an important factor in your credit score, and the lower your balances are, the better. A utilization ratio above 30% will start to hurt your score; those with the top credit scores keep their utilization percentage in the low single digits.\n*   **Dispute fraudulent information.** In rare cases, a credit report can include information that resulted from fraud. If you find something you don't recognize, consider disputing it with the credit reporting agencies to have it removed or corrected.\n*   **Avoid new debt.** Multiple credit inquiries in a short period can be a sign you're struggling to manage your budget and leaning on debt to make ends meet. It's essential to apply for credit only when you need it.\nAs you take these steps and address other issues you find on your credit report, you may be able to improve your chances of getting the apartment you want. END
 TITLE: Should I Check My Credit Before Renting an Apartment? CONTENT: Use Your Utility Accounts to Boost Your Credit Score\n----------------------------------------------------\nUtility and phone payments historically haven't been included in your credit score, but with Experian Boost™† , you can get credit for on-time payments with those accounts, which can raise your FICO® Score.\nSimply connect the bank accounts you use to pay your utility and telecom bills, and verify the positive payment history that you want to have included in your Experian credit file. Once you've completed the process, you'll see your new credit score instantly.\nA higher credit score can make it more likely you'll be approved for the apartment you want, so continue to practice good credit habits and check out Experian Boost to improve your chances. END
 TITLE: A Millennial’s Guide to Buying Their First Home: Here’s How CONTENT: House Hunting\n-------------\nNow that you know what you can afford, it's time for the fun part: house hunting.\nStart by figuring out what area you want to live in. You might have an idea of what part of town you want to live in, so go online and see what houses go for in that neighborhood.\nTo help further narrow down the search, make a list of must-haves and nice-to-haves. Must-haves are non-negotiable—features you can't live without. Nice-to-haves are things you could forgo but would love to have in your new home.\nNow compare your must-haves with what your ideal neighborhood has to offer. You might find that your ideal neighborhood doesn't meet your must-have list, or that you can't afford it if it does.\nContinue looking in neighboring areas until you find a few homes that might meet your criteria. As soon as you've found them online, don't waste time. Go see them in person as soon as possible. END
 TITLE: A Millennial’s Guide to Buying Their First Home: Here’s How CONTENT: Close the Deal\n--------------\nIf things go well all the way to the closing day, you'll have a final opportunity to walk through the home and make sure it's in the condition you expect. Check that any presale repairs or other conditions have been met before inking the deal.\nThen you'll likely sit down at the closing table and sign papers with your lender and title company. Once this process is finished, the home becomes yours. END
 TITLE: What Factors Do Mortgage Lenders Consider? CONTENT: What Do Mortgage Lenders Look for on Your Credit Report?\n--------------------------------------------------------\nFinancial institutions will closely scrutinize your credit report when reviewing your application for a mortgage loan. While they look at your credit score, they also dive much deeper. Here are some of the things lenders will consider:\n*   **Recent applications**: Lenders take a look to see if you've recently applied for any other forms of credit or debt. These applications cause what are called hard inquiries on your report, too many of which can look risky since a flurry of applications for new debt can indicate financial trouble.\n*   **Payment history**: Lenders also will review your payment history on credit cards, loans, lines of credit and anything else that shows up on your credit report. They want to make sure you have a track record of on-time payments that could indicate you'll be a responsible mortgage borrower. If you have any old payments that were late or missed, the lender may ask you for an explanation.\n*   **Credit utilization**: Your credit utilization ratio is a factor mortgage lenders consider. This ratio indicates how much of your available credit you're using at a given time. If you're using too much of your credit, it can make you appear overleveraged, and thus riskier to lenders. Most lenders prefer your credit utilization be under 30%, so make sure you're not exceeding this to see a positive impact on your credit scores and mortgage approval chances. In other words, if you have a credit card with a $10,000 limit, aim to keep your balance under $3,000.\n*   **Major derogatories (such as bankruptcies)**: This includes any negative mark that makes you look riskier as a borrower. This could be a bankruptcy, judgment, delinquent account, account in collections, charge-off or an account settled for less than what was owed.\n*   **Being an authorized user**: When you're an authorized user on someone else's credit card account, it typically shows up on your credit report. The primary account holder's activity is reflected on your credit, so if they've used the account responsibly, it can help make your credit look better. However, your lender may not view this activity as a good way to assess your finances since you're on someone else's account, which doesn't necessarily represent how you'd handle a mortgage. Generally, lenders will consider accounts where you are the primary account holder much more heavily.\n*   **A dispute statement**: Mortgage lenders will also check to see if there are any dispute statements or pending disputes on your credit report, and may look upon them negatively. Also, a dispute can hold up the mortgage underwriting process from a logistical standpoint. If you have a pending dispute on your credit report, it's advisable to wait for the dispute process to resolve before you apply for a mortgage. Lenders prefer to see a true view of your credit, without a pending dispute clouding the picture. END
 TITLE: What Factors Do Mortgage Lenders Consider? CONTENT: How Do Lenders Assess Your Income?\n----------------------------------\nYour income is a major factor when it comes to being approved for a home loan. Mortgage lenders prefer borrowers who have a stable, predictable income to those who don't. While they look at your income from any work, additional income (such as that from investments) is included in their assessment.\nYour debt-to-income ratio (DTI) is also very important to mortgage lenders. It indicates how much of your monthly income goes to your debts, and gives lenders an overall sense of how you're doing financially. If your ratio is high, it can show you're overleveraged and possibly not in a position to take on more debt, so you might face a higher interest rate or be denied altogether.\nKeep in mind that the income and employment you indicate on your application is often verified, so use accurate information. Lenders will likely view your income documentation and may even directly contact employers for verification. END
 TITLE: What Factors Do Mortgage Lenders Consider? CONTENT: Do Mortgage Lenders Consider Your Assets?\n-----------------------------------------\nWhile not as critical as your credit or income, lenders will usually want to see your bank statements. On your application, you can also list assets such as cash (things like checking accounts, savings accounts and CDs) and investments (retirement accounts, stocks, bonds or anything else).\nHaving high-value assets makes you look less risky to lenders. This is because they may mean you're better equipped to make a larger down payment and pay your mortgage payments on time every month, even if an emergency arises or you lose your job. END
 TITLE: What Factors Do Mortgage Lenders Consider? CONTENT: What Do Lenders Require for a Down Payment?\n-------------------------------------------\nThe rule of thumb is to try to save at least enough to make a 20% down payment on a home. A down payment of this size will get you closer to the best loan interest rates, but some conventional loans have much lower down payment requirements.\nDepending on your situation, you may be eligible for a government-backed loan that allows you to put down very little. For example, a mortgage loan through the U.S. Department of Veterans Affairs requires nothing down, and loans through the Federal Housing Administration (FHA) permit as little as 3.5% down.\nHowever, the higher the loan-to-value ratio (LTV) on your loan, the more risk you're asking a lender to take on. For example, if the LTV is 90%, it means the lender is financing 90% of the home's appraised value, while you, as the buyer, are putting down 10%. When the LTV is high, the lender is taking on a high proportion of the debt, and might require you to have private mortgage insurance (PMI) to offset its risk.\nIf you take out a conventional loan and put down less than 20%, you'll probably get stuck with a higher interest rate, and you'll likely be required to pay PMI until you reach 20% equity. With an FHA loan, you often have to pay mortgage insurance for the life of the loan. END
 TITLE: What Factors Do Mortgage Lenders Consider? CONTENT: Keep an Eye on Your Credit\n--------------------------\nAs we mentioned, your credit report is one of the most crucial things mortgage lenders review in the underwriting process for loans. If you're not sure where your credit stands currently, check your free credit report on Experian to see how you stack up and where there's room for improvement. END
 TITLE: How Can Mortgage Forbearance Help Me Pay My Mortgage? CONTENT: How Does a Mortgage Forbearance Work?\n-------------------------------------\nMortgage forbearance is for homeowners who are or will be delinquent on their mortgages due to a temporary financial hardship, though lenders each have their own policies and terms for how they handle it. The terms of forbearance can also vary depending on what type of loan you have, but you will usually have one of two options: either your payments will be reduced or they will be suspended altogether for a set time period. The lender will agree not to foreclose on your home during this time, which can last for a few months or up to a year, as long as you abide by their terms.\nThe forbearance agreement will outline your obligations, which usually means resuming your usual full mortgage payment once the forbearance period ends. Your debt is simply deferred, not forgiven, so you will also be responsible for paying the amounts you missed during the forbearance period. Some lenders require you to pay the entire amount at once when the period is over.\nIn other words, if your payments were paused for six months, you might owe six months of mortgage payments in one lump sum. Other lenders might give you some time to repay the missed amounts, so find out the terms and make sure you'll be able to afford to repay this amount before you move forward with forbearance. If your forbearance period ends and the hardship you've experienced isn't yet resolved, some lenders may extend your forbearance to give you a little more time.\nA mortgage forbearance is intended to provide temporary relief if, for example, you've had a health emergency, lost your job or experienced a natural disaster. If you can't pay your mortgage because of bigger financial problems, such as an interest rate that's too high, a forbearance isn't a viable solution since you will have to resume your payments once the forbearance period ends. In that case, it might make more sense to look into a loan modification, which is a permanent change to your mortgage loan to make it more affordable. END
 TITLE: How Can Mortgage Forbearance Help Me Pay My Mortgage? CONTENT: Is Mortgage Forbearance Bad for Your Credit?\n--------------------------------------------\nA mortgage forbearance might not affect your credit as negatively as you'd expect. A lender isn't obligated to report it to the credit bureaus, and if they do, it might not hurt your credit if they don't report your payments as late. Keep in mind that having late payments or a foreclosure on your credit report looks much worse than a forbearance.\nSo if you're at risk of making late or missed mortgage payments, or you're getting closer to foreclosure, going through mortgage forbearance can help protect your credit. That's because during this time, any missed payments won't be considered missed since your lender agreed to the plan, and they won't foreclose during this time. END
 TITLE: How Can Mortgage Forbearance Help Me Pay My Mortgage? CONTENT: How to Get Forbearance on a Mortgage\n------------------------------------\nIf you've experienced a hardship and you can't pay your mortgage, you might want to see if mortgage forbearance is an option. To get started, call your loan servicer immediately to let them know what's going on and ask about their options for forbearance or hardship. Call them as soon as you know you won't be able to make a payment to avoid having missed payments go on your credit report.\nKeep in mind that guidelines vary from lender to lender, and some may have rules, such as requiring the hardship to be within a certain amount of time of your request. The lender isn't obligated to approve your request, so if you feel like you're out of options, you can contact a government-approved housing counselor to help you figure out the best path forward. END
 TITLE: How Can Mortgage Forbearance Help Me Pay My Mortgage? CONTENT: Keep an Eye on Your Credit\n--------------------------\nIf you go through the process of getting a mortgage forbearance, it's wise to monitor your credit regularly to make sure you aren't negatively affected. If your lender agreed they won't mark your payments as late or missed, check your credit periodically to ensure they stick to this. You can get your free credit report through Experian online. END
 TITLE: How to Negotiate a Car Lease CONTENT: Understand How Car Leases Work\n------------------------------\nCar leases are sometimes a better deal for drivers who want the latest-model cars but need a lower monthly payment. You may also be able to put down lower down payment and get full coverage under the manufacturer's warranty.\nTo negotiate a car lease, you'll need to understand the process and relevant terms that may come up when speaking with the car salesperson. Think of a lease as a long-term rental—you pay to use the vehicle for a specific time period and then buy the car or return it when the lease ends. Most leases last two to four years and allow you to drive 10,000 to 15,000 miles per year. If you exceed the allotted mileage, a per-mile fee is assessed.\nThe dealership will offer a lease agreement that details the term and annual mileage limitations. It will also include the following:\n*   The current value of the car and the projected value when the lease ends.\n*   How much money you need to put down to begin the lease.\n*   The rent charge or \"money factor,\" which is comparable to the interest rate you'd pay to finance a vehicle.\n*   Penalties for delinquent lease payments.\n*   Any fees you are responsible for when the lease ends.\n*   Early termination fees.\n*   Fees for normal wear and tear and potential additional charges for excessive damage.\nWhen you read through your lease agreement, you're likely to encounter some unfamiliar phrases. Study the following definitions to better equip yourself when negotiating your lease:\n*   **Residual value**: The projected value of the car at the end of the lease. This amount is calculated using industry data and factors in vehicle depreciation.\n*   **Gross capitalized cost**: Equivalent to the selling price of a vehicle. It is sometimes referred to as the market value.\n*   **Acquisition fee**: Dealerships charge this fee to set up the lease. According to Edmunds, you can typically expect to pay $395 to $895 upfront or roll it into the monthly lease payment.\n*   **Cap cost reduction**: Anything that reduces the amount financed under the lease agreement. Capital cost reductions can include rebate amounts, payments or trade-in credits.\n*   **Buyout price**: What the dealership would charge if you wanted to buy the car at the end of the lease term.\n*   **Disposition fee**: This covers the cost of cleaning the vehicle, preparing it for the market and selling it after you return it.\nNow that you know how leases work and what to expect when reviewing the lease agreement, the next step is to understand what you can and can't negotiate. END
 TITLE: How to Negotiate a Car Lease CONTENT: Know What You Can and Can't Negotiate\n-------------------------------------\nShopping around at different dealerships and comparing prices can help you save money before you even begin the negotiation process. Look for lease specials on your favorite models, and don't be afraid to drive to an out-of-the-way dealership to get a better deal. You can quickly search online or call the dealership directly to learn more about any special offers they have available.\nOnce you've found a deal on a vehicle that works for you as a starting point, it's time to call or sit down with a sales associate and negotiate. Before you dive in, keep in mind that not all terms of lease agreements are negotiable.\nYou might have luck negotiating the following items:\n*   **Gross capitalized cost**: Research to see what others in your area are paying for leases on comparable vehicles. The dealer will try to get you to focus on the monthly payment and offer you an extended lease term to make sure it fits your budget. Don't fall for this—negotiating a lower capitalized cost can also give you a more affordable monthly payment, without extending your lease obligation.\n*   **Mileage allowance**: Make sure your lease's annual mileage allowance suits your driving needs. If you don't drive a lot, a lower mileage allowance can reduce your monthly payment. But if you're on the road a lot, your mileage allowance might be impossible to adhere to and cost you when you return the lease. Paying more for a higher allowance can help you avoid extra fees and save you in the long run. You might be able to talk your way into a higher allowance without any extra fees, but don't count on it.\n*   **Buyout price**: Let the sales associate know if you plan to buy the vehicle at the end of the lease, and they may be willing to reduce the buyout price. Potentially, you can negotiate it down to an amount lower than the anticipated market value of the car at the end of the term.\n*   **Money factor or interest rate**: Your creditworthiness plays a factor in this cost, and higher credit scores can help bring it down. Some dealerships offer rock-bottom rates to those with excellent credit.\n*   **Trade-in value**: If you're trading in your car, make sure it's in great condition for the appraisal and ask for a higher value than what they initially offer. The more you're able to get for your trade-in, the less has to come out of your pocket.\n*   **Disposition fee**: The dealership may be willing to waive this fee if you buy the vehicle. It's also possible to avoid the disposition fee if you agree to lease another vehicle once your lease term is up.\nHowever, the dealer probably won't budge on these costs:\n*   **Residual value**: This number is usually set in stone since it's determined by industry data. Plus, since most lease deals include a purchase option, the dealer stands to lose money if this number comes down and you choose to buy the car.\n*   **Acquisition fee**: You probably won't have much luck negotiating an acquisition fee since it's a loan processing expense that dealerships must incur to seal the deal.\nHow Does My Credit Score Affect My Ability to Lease a Car?\n----------------------------------------------------------\nWhen you apply for a car lease, the leasing company will pull your credit report and scores to assess your creditworthiness and make a lending decision. Generally, the best interest rates go to those with excellent credit. Aim for a credit score of 700 or better before applying for a lease to get the best deal. According to Experian's State of the Automotive Finance Market report, the average credit score for new-car lessees was 729 in the second quarter of 2020.\nIf your credit score is considered fair or worse (below 670), leasing may be more expensive or not possible. You may also be limited to a smaller selection of vehicles. Purchasing a used car may be a better deal if you're in this situation. You can also find dealers who work with customers who have bad credit.\nAnother strategy to consider is taking time to improve your credit score before applying for an auto lease. Here are some tips to help you get started:\n*   Pay all your bills on time to prevent late payments, collections and charge-offs from hitting your credit report.\n*   Get current on any past-due accounts and take care of charge-offs that are already on your report.\n*   Pay down your credit card balances to improve your credit utilization ratio.\n*   Keep old credit cards open as they can lengthen your credit history and help bring down your credit utilization.\n*   Use Experian Boost™† to have utility bills, cellphone payments and other bills added to your Experian credit reports. Once they're on your report, those on-time payments can factor into your scores, potentially giving them a lift.\nTake a look at our detailed guide to learn more about what you can do to lift your credit scores.\nThe Bottom Line\n---------------\nIt's possible to get a great deal on a car lease, especially if you work hard to negotiate. Shop around for the best deal, familiarize yourself with leasing language, and know what you can and can't negotiate to save time. Most important, check out your credit score before applying to see where you stand.\nWorried that your credit score is too low to get a good deal on a lease? Get your free credit report and scores from Experian and view the factors that are affecting your score. You can also keep tabs on your score with the FICO® Score☉ tracker as you work to improve your credit health. END
 TITLE: How to Negotiate a Car Lease CONTENT: How Does My Credit Score Affect My Ability to Lease a Car?\n----------------------------------------------------------\nWhen you apply for a car lease, the leasing company will pull your credit report and scores to assess your creditworthiness and make a lending decision. Generally, the best interest rates go to those with excellent credit. Aim for a credit score of 700 or better before applying for a lease to get the best deal. According to Experian's State of the Automotive Finance Market report, the average credit score for new-car lessees was 729 in the second quarter of 2020.\nIf your credit score is considered fair or worse (below 670), leasing may be more expensive or not possible. You may also be limited to a smaller selection of vehicles. Purchasing a used car may be a better deal if you're in this situation. You can also find dealers who work with customers who have bad credit.\nAnother strategy to consider is taking time to improve your credit score before applying for an auto lease. Here are some tips to help you get started:\n*   Pay all your bills on time to prevent late payments, collections and charge-offs from hitting your credit report.\n*   Get current on any past-due accounts and take care of charge-offs that are already on your report.\n*   Pay down your credit card balances to improve your credit utilization ratio.\n*   Keep old credit cards open as they can lengthen your credit history and help bring down your credit utilization.\n*   Use Experian Boost™† to have utility bills, cellphone payments and other bills added to your Experian credit reports. Once they're on your report, those on-time payments can factor into your scores, potentially giving them a lift.\nTake a look at our detailed guide to learn more about what you can do to lift your credit scores. END
 TITLE: Can I Pay for Health Insurance With a Credit Card? CONTENT: Do Health Insurance Companies Accept Credit Cards?\n--------------------------------------------------\nHealth insurance companies are not required to accept credit cards. Still, many do allow them as a form of payment.\nSome of the main health insurance providers that permit credit card payments for premiums include:\n*   Aetna\n*   Anthem\n*   Blue Cross Blue Shield\n*   Cigna\n*   Highmark Inc.\n*   Humana\n*   Kaiser Permanente\n*   Health Net\n*   United Healthcare\n*   WellCare\nIn some cases, the type of medical plan you have may determine whether you can make payments with a credit card, and you may find instances where you can pay by card in person but not in other cases. Check with your provider for details.\nIf your health insurance company doesn't take credit cards, you may be allowed to pay online with your debit card or directly from your checking account. Many providers also accept checks and money orders by mail. END
 TITLE: Can I Pay for Health Insurance With a Credit Card? CONTENT: Does It Make Sense to Pay for Health Insurance With a Credit Card?\n------------------------------------------------------------------\nThere can be advantages to paying your health insurance premiums with a credit card. Depending on the type of credit card you have, it could help you earn points or cash back rewards, or take advantage of bonus offers. Using a credit card may also be the most convenient choice.\nBut there are also potential drawbacks with choosing this payment method. The first is the added cost if you don't pay off the charge right away. If you carry a balance on your credit card from month to month, you will rack up interest charges on the unpaid balance. A premium payment of a few hundred dollars could end up costing you if it sits on your credit card for an extended period—especially if you use your card to pay premiums monthly and don't pay off the balance. With current credit card interest rates around 16%, those extra charges can add up fast.\nSome providers also charge a convenience fee for credit card payments. In these cases, it's better to use a debit card, check or money order to save money. Before you pay your bill, check with your provider to find out whether there are any additional charges for using a credit card. END
 TITLE: Can I Pay for Health Insurance With a Credit Card? CONTENT: How Can Paying for Health Insurance With a Credit Card Affect Credit?\n---------------------------------------------------------------------\nPaying for health insurance with a credit card can impact your credit depending on how you manage your credit cards. Here's how.\n*   **Credit utilization**: The amount of available revolving credit you use compared with your total credit limits makes up 30% of your FICO® Score☉ , the credit score most widely used by lenders. Your credit utilization ratio is calculated by adding up the balances across all your cards and dividing it by your total credit limits. Keeping this figure below 30% for each credit card and overall can help you maintain a good or excellent credit score.  \n    To illustrate, if you have $2,000 in available credit on a card and your current balance is $500, your credit utilization is 25%. If you decide to pay your $250 health insurance premium on the same card, it will bring the balance to $750 and raise your utilization to 37.5%. In this case, you'd want to avoid using your credit card or pay off the premium payment immediately to keep credit utilization low.\n*   **Payment history**: This is the most significant component of your FICO® Score, accounting for 35% of your score. If you make timely credit card payments each month and never miss a payment, your positive payment history will help improve your credit score. But if you miss a payment and it becomes 30 days or more past due, you may receive a negative mark on your credit report and your score will suffer. If you fear you may fall behind on credit card payments, avoid using a card to pay health insurance so you don't risk damaging your credit.\nStay on Top of Your Credit Health\n---------------------------------\nMany health care insurance providers allow subscribers to cover premiums with credit cards. While this may be a convenient and even valuable option, be sure you'll be able to pay off your premiums every month before moving forward.\nEven if you don't use a credit card to pay your health insurance, staying on top of your credit is important. Experian makes it easy to keep tabs on your credit report and FICO® Score with free credit monitoring, which also provides alerts when there are any changes to your report. END
 TITLE: What Is the Difference Between ACH and Wire Transfer? CONTENT: ACH transfers get their name from the Automated Clearing House network, which includes about 10,000 financial institutions. The ACH network can be used to process transactions such as direct debits, direct deposits, direct payments, electronic checks (eChecks) and electronic funds transfers (EFTs).\nBoth consumers and businesses use ACH transfers for transactions that fall into two categories: direct payments (ACH debit transactions) or direct deposits (ACH credit transactions). Some financial institutions also offer bill payment, which allows you to schedule and pay all your bills electronically using ACH transfers. Or you can use the ACH network to initiate transfers to individuals or merchants abroad. If you're a business owner, you can also use ACH transfers to pay your vendors or employees.\nOften, ACH transfers clear the bank in just a few business days if there are sufficient funds in the account. Transactions can take longer, though, under certain circumstances—such as if the system detects a potentially fraudulent transaction. END
 TITLE: What Is the Difference Between ACH and Wire Transfer? CONTENT: What Is a Wire Transfer?\n------------------------\nA wire transfer is an electronic payment service used to move money between accounts. This method can be used to transfer money for a same-day arrival, but the expedited service comes at a premium.\nThere are two types of wire transfers: domestic and international. International transfers are also called remittance transfers, international wires or international money transfers, and must be for more than $15 when sent from the United States to another country.\nIt's not uncommon for consumers to use wire transfers to make hefty one-time payments that require same-day processing for transactions related to real estate. But be mindful that same-day limits on fund transfers may apply. END
 TITLE: What Is the Difference Between ACH and Wire Transfer? CONTENT: Key Differences Between ACH and Wire Transfers\n----------------------------------------------\nBefore you initiate an ACH or wire transfer, it's important to understand how they differ. Consider these factors when deciding which option is best:\n*   **Availability**: ACH transfers only work for domestic transactions. If you want to send funds abroad through the ACH network, you must do so using an international wire transfer.\n*   **Security**: Both types of transfers offer security measures you aren't afforded when you send a paper check. Financial institutions that handle wire and ACH transfers provide an added layer of protection because banking information is encrypted during the transfer. Both types of transfers require steps to be taken to verify identity or banking information before the transaction can be completed, but mistakes and fraud do happen. While ACH transfers can be stopped, wire transfers work much more quickly and are final once the funds are received—canceling a wire transfer is usually a race against time.\n*   **Transfer limits**: Daily transfer limits apply for ACH and wire transfers. Check with your bank or credit union to confirm.\n*   **Processing times**: ACH transfers can take one or more business days to process, but most wire transfers are processed the same business day.\n*   **Posting times**: Wire transfers allow recipients to access funds the moment they hit an account. ACH transfers are slightly different: The funds will appear in \"pending\" status and won't be released to you for use until they clear the ACH system. This could take up to three business days.\n*   **Reversals**: The good news is you may be able to request a transaction reversal for ACH transfers if there's an error. Wire transfers don't offer this luxury and are permanent once the transaction is initiated.\n*   **Fees**: Expect to pay a fee from $10 to $35 for each wire transfer you initiate. Recipients are sometimes subject to a nominal fee for incoming wire transfers. Most ACH transfers are free, but a fee may apply for expedited bill pay services or transfers to outside banks. END
 TITLE: What Is the Difference Between ACH and Wire Transfer? CONTENT: Which Option Is Best?\n---------------------\nIf you're torn between an ACH or wire transfer, consider the processing time and fees. ACH transfers take a bit longer to process, but are usually free. They're also ideal if you're looking for a convenient way to pay bills electronically. But if you need the funds to arrive the same day or make a cross-border payment, a wire transfer is the best option. END
 TITLE: How Many Times Can I Get an FHA Loan? CONTENT: Can You Get an FHA Loan More Than Once?\n---------------------------------------\nYou can get multiple FHA loans in your lifetime. But while you don't need to be a first-time homebuyer to qualify, generally speaking, you can only have one FHA loan at a time. This prevents potential borrowers from using the loan program to buy investment properties.\nHowever, you may qualify for an additional FHA loan without selling or paying off your current property under the following circumstances:\n*   You're relocating to an area that's beyond reasonable commuting distance to your current residence or where affordable rental housing is not available.\n*   You're leaving a jointly owned property to buy a home, and the co-owner plans to remain in the home (such as in a divorce).\n*   You cosigned an FHA loan for someone else and now want to purchase your own home.\nIf you want to purchase another home with an FHA loan to accommodate your growing family, you'll need to provide evidence of the increase in dependents and your current home's failure to meet your needs. You will also need at least 25% in equity in your current home to be eligible; if you're not there yet, you'll need to pay down the loan balance until you reach 25% in equity to qualify.\nAs long as you meet one of these exceptions, there is no required waiting period between FHA loans. END
 TITLE: How Many Times Can I Get an FHA Loan? CONTENT: FHA Loan Requirements\n---------------------\nAre you ready to apply for an FHA loan? Even if you already have an FHA loan, it's a good idea to run through the loan requirements before applying for a new one.\n*   **Down payment and credit score**: Your required down payment will depend on where your score falls. You can put as little as 3.5% down on an FHA loan if your credit score is 580 or higher. You'll need a downpayment of 10% if your credit score is between 500 and 570.\n*   **Debt-to-income ratio (DTI)**: Your DTI is the total of your monthly debt payments as a percentage of your monthly gross income. To qualify for an FHA loan, your DTI should be under 43%. To illustrate, let's say the monthly mortgage payment on the home you're considering would be $1,500 and your gross monthly income is $5,000. The amount of your other monthly debt obligations cannot be higher than $650. That said, you may be able to get approved with a DTI of up to 50% if the loan does not pose an elevated risk to the lender.\n*   **Mortgage insurance**: FHA loans require you to pay mortgage insurance, which is divided into two types of payments. You will be charged a flat fee of 1.75% of the loan amount at the time of closing, which can be rolled into your loan if you don't have the cash on hand. A monthly charge will also be tacked on to the mortgage payments to cover mortgage insurance for the life of the loan. This payment is also a percentage of the loan amount and is determined by the loan size, term and loan-to-value ratio (LTV).\n*   **Other criteria**: The lender will request your Social Security number and proof of income and assets to determine how much home you can comfortably afford. You should also be clear of any foreclosures for at least three years to qualify for an FHA loan.\nKeep in mind that these are just general qualifying criteria. Some FHA-approved lenders have stricter requirements for potential borrowers. It's best to speak with a loan officer to get a better idea of their FHA loan requirements. END
 TITLE: How Many Times Can I Get an FHA Loan? CONTENT: Check Your Credit Before You Apply\n----------------------------------\nFHA loans can make it easier to purchase a home and offer many benefits for potential homebuyers with lower income, limited cash reserves or lower credit scores. Before you apply for a loan, check your Experian credit score for free to see where you stand. This also helps you determine if you may qualify for an FHA loan or have a high enough credit score to be eligible for other mortgage products. END
 TITLE: How to Lower Your Energy Bill CONTENT: How to Save on Electricity\n--------------------------\nReducing overall energy consumption and using energy more efficiently are the two primary ways renters and homeowners can save money on electricity costs. Making some of these changes can be free or low-cost, while more ambitious long-term solutions may require an investment. Here are some ideas to help you get started:\n*   **Minimize wasteful energy usage.** Always shut off lights and appliances that are not in use.\n*   **Reduce energy use from vampire loads.** Vampire loads, or electricity used by electronics and appliances that remain plugged in when they're not in use, can get costly. Plugging these items into power strips that you can turn off each night can save you.\n*   **Use power during off-peak times.** Many utility providers have programs that offer reduced rates or rebates on electricity used during off-peak hours. If you're not already on this type of plan, check with your provider to find out what your options are.\n*   **Use LED light bulbs and dimmer switches.** The upfront investment for LED light bulbs is slightly higher, but they last longer than incandescent bulbs. Dimmer switches allow you to adjust the brightness in the space.\n*   **Download a usage-tracking app.** These apps can tell you how energy is consumed in your home so you can identify ways to cut costs. Consider downloading the Sense app to monitor energy used by electronics and household appliances. If you have solar panels, the SolarEdge Monitoring app tells you how much solar energy is produced by the panels.\n*   **Get a home energy audit.** Some utility providers will come out to your home, assess the space and offer suggestions to help lower your energy usage for free. You can also hire an independent company to perform an energy audit for a fee.\n*   **Take advantage of renewable energy tax credits.** You may qualify for a federal tax credit if you install specific renewable-energy systems in your home. Visit Energy Star's website to learn more about the types of systems covered.\n*   **Use an energy-efficient water heater.** If you're thinking about purchasing a new water heater, consider energy-efficient models or even those that do not use any electricity.\n*   **Purchase energy-efficient appliances, electronics and lighting.** Energy Star appliances that meet the U.S. Department of Environmental Protection's (EPA) energy efficiency standards can help reduce energy use, lowering your energy bill.\n*   **Consider adding solar panels.** Solar panels use energy from the sun's rays to produce power. The cost savings of solar power over time can be significant, although a hefty initial investment is typically required. If you are interested in solar panels, you'll need to decide whether you want to rent or own them. Energy.gov offers a Homeowner's Guide to Going Solar if you're thinking about making the switch. END
 TITLE: How to Lower Your Energy Bill CONTENT: How to Save on Heating and Cooling\n----------------------------------\nThe cost of heating and cooling your home can also add up, especially if you live in an area with extreme weather conditions. There's no way to control the weather, but you can control the climate in your home and save money along the way with these tips:\n*   **Purchase a new thermostat.** Programmable thermostats allow you to control the temperature in your home on a schedule. They also allow you to turn your unit off while you're away and set the thermostat to power on a few minutes before you return home. Manual programmable thermostats are inexpensive, while others have a mobile app you can use to adjust your home's temperature with a few taps when away from home.\n*   **Run ceiling fans.** Instead of blasting the A\/C, use ceiling fans to keep cool. Just don't forget to turn them off when you leave a room.\n*   **Improve your home's insulation.** Proper insulation helps keep your home at the temperature you prefer without constantly triggering the heater or air conditioner.\n*   **Close all doors and windows and layer up during colder months.** Turn the thermostat down in your home, layer warm clothing and get cosy with blankets rather than cranking up the heat. END
 TITLE: How to Lower Your Energy Bill CONTENT: How to Save on Hot Water\n------------------------\nAccording to Energy.gov, water heating makes up 18% of the average home's energy use. Even if you live in an area that doesn't assess a fee for water usage, you still have to pay to heat it up. Here are some simple ways to scale back on hot water usage and save money:\n*   **Use cold water for laundry.** Cold water can help prevent shrinking and fading of clothes and other items, and you'll avoid using extra energy to heat up the water. Also, washing full loads will help cut your energy and water usage.\n*   **Adjust the temperature on your water heater.** Manufacturers typically advise setting your water heater temperature to 140 degrees—but reducing the temperature to 120 degrees is sufficient for most households, and reduces the chance of scalding. Lowering the temperature can also prolong the life of your water heater by reducing mineral buildup and corrosion.\n*   **Fix leaky faucets.** A single drip per second accounts for 1,661 gallons of water and costs up to $35 per year, according to Energy.gov.\n*   **Install reduced-flow fixtures.** Simply buying new showerheads, which can cost as little as $10 to $20 each, could net you water savings of up to 60%.\n*   **Use hot water more efficiently.** Avoid lengthy hot showers and only run the dishwasher when it's completely full. END
 TITLE: How to Lower Your Energy Bill CONTENT: Try to Negotiate Your Energy Bills\n----------------------------------\nYou may be able to negotiate your energy bill to save money depending on the state you live in and your utility provider.\nSome states offer energy choice, allowing you to select from a list of electricity and natural gas providers. Research rates and contact the providers you're most interested in to inquire about introductory rates and other new-customer incentives. Let the customer service representative know you've done your homework by shopping competitors. Also, be open to speaking to several team members until you get the discounted rate you want.\nIf these tactics don't work, be willing to walk away. Communicate your intention to cancel your services and go with another energy provider. In most instances, the customer loyalty or retention department will get involved and offer incentives to keep you as a customer.\nIf your area does not offer you a choice of providers, try these tips for negotiating your energy bills:\n*   **Inquire about ways to lower your bill.** This often works better than asking for a better price. The representative may offer a discount not advertised to the public.\n*   **Ask about customer loyalty programs.** If you've been a customer for some time, the energy provider may have a small discount available to you.\nIt's also worthwhile to inquire about, paperless billing and autopay. If you sign up for these programs, you could get a discount on your monthly bill. END
 TITLE: How to Lower Your Energy Bill CONTENT: How Your Energy Bill Can Affect Your Credit Score\n-------------------------------------------------\nLowering your energy bill can help free up funds that can be used to meet financial goals. Your energy bills could affect your credit health—both positively and negatively.\nUtility accounts aren't automatically reported to the credit bureaus, but if you miss or fall behind on your payments, the utility provider could turn the account over to a collection agency. A collection account could end up on your credit report and hurt your credit.\nPaying your energy bill on time every month can also mean good news for your credit score. With Experian Boost™† , you can receive credit on your Experian credit report for timely utility, telecom and streaming service payments—which can help improve your credit scores. In fact, Boost users whose scores go up see an average credit score increase of 13 points when adding these payments to their credit reports. END
 TITLE: Do I Need a Financial Planner? CONTENT: What Is a Financial Planner?\n----------------------------\nFinancial planners can help you create a plan to reach short-term and long-term financial goals. They can help you manage your budget and provide guidance in terms of your overall financial health and your progress toward specific goals.\nA financial planner is a type of financial advisor whose role is specifically to help people plan for the future. \"Financial advisor\" is the umbrella term for all professionals who perform tasks like wealth management, estate planning and investment guidance.\nUnlike certain similar professions, financial planners are not specifically regulated by the Financial Industry Regulatory Authority (FINRA) or the U.S. Securities and Exchange Commission. (Investment advisors, for example, must register with the government in order to do their job.) However, financial planners often obtain professional credentials and adhere to regulations that apply in their line of business—your financial planner may be an accountant, for instance. Many financial planners are also certified through the Certified Financial Planner Board of Standards Inc. and are qualified to offer these services:\n*   Financial planning basics (such as cash flow and debt management)\n*   Investment planning\n*   Retirement savings and income planning\n*   Tax and estate planning\n*   Risk management and insurance planning\n*   Education planning\nIf you decide to work with a certified financial planner (CFP), they will review your financial information and work with you to set goals and viable timeframes. Once the plan is in motion, either you or the financial planner (depending on your preference) will monitor your progress and make adjustments as needed to ensure you stay on track. END
 TITLE: Do I Need a Financial Planner? CONTENT: When Is a Financial Planner a Good Idea?\n----------------------------------------\nYou don't have to hire a CFP to handle your financial planning. But you could benefit from the assistance of a licensed professional if you:\n*   Want to get a handle on your finances but don't know where to start.\n*   Need a detailed but realistic financial plan that's easy to follow.\n*   Need general assistance with investment, retirement, tax, estate, insurance or education planning.\n*   Got a big raise at work and aren't sure where to invest the extra funds.\n*   Recently experienced a major life event, like getting a divorce, having a new baby or receiving an inheritance.\n*   Want to minimize your tax liability.\n*   Want to lower your investment risk and yield greater returns.\n*   Have minimal time in your schedule to handle your own financial planning.\nHowever, you may want to hold off on hiring a financial planner if:\n*   You are worried about the cost of services. Are you having trouble making ends meet or burdened by your debt? It may be best to get a handle on your budget, start saving money and create a plan to get out of debt before you hire a financial planner. A credit counselor can help you create a plan to get financially stable.\n*   You already have a financial plan that is working well. If your plan is running smoothly, and you're well-equipped to make adjustments as needed, a financial planner may not be necessary. END
 TITLE: Do I Need a Financial Planner? CONTENT: How to Choose a Financial Planner\n---------------------------------\nBefore you begin your search, understand that some professionals may call themselves financial planners without actually having the proper credentials, certifications or know-how. Confirm that the professionals you're considering are certified through the CFP Board. This means individuals have met the board's education, experience and examination requirements, and will be held to high standards. Use this online tool to verify their credentials.\nSome other factors to consider when shopping around for a financial planner:\n*   Are services provided in-person or online?\n*   Does their knowledge and experience suit your needs?\n*   What credentials and licenses do they hold?\n*   Do they work for a company or are they on their own?\n*   Do they prefer that clients fall within a certain asset range or require a minimum investment amount?\n*   Do they offer a fee- or commission-based compensation structure?\n*   Are their fees comparable to what other financial planners charge for similar services?\n*   How have they been reviewed by past clients?\n*   Have they been disciplined by regulatory authorities while working as a financial planner?\nNeed help finding a financial planner? Use the Find a CFP Professional tool operated by the Certified Financial Planner Board of Standards Inc. to identify financial planners that may be a good fit. END
 TITLE: Do I Need a Financial Planner? CONTENT: Alternatives to Traditional Financial Planners\n----------------------------------------------\nIf you'd prefer not to hire a financial planner, consider these alternatives:\n*   **DIY financial planning**: If you'd like to try putting together your own financial plan, you can use this detailed guide from Experian to get started. It provides a four-step process you can use to move forward with setting and working toward your financial goals.\n*   **Robo-advisor**: Need help getting your investment portfolio up and running? A robo-advisor automates the entire process and can typically get the job done for a fraction of what a human financial planner or investment advisor would charge.\nFeeling a bit overwhelmed? You can always hit the brakes later on and bring in a financial planner to help you finish what you started. This move could turn out to be quite beneficial and save you money over going with a financial planner from the get-go. END
 TITLE: Can You Pay Student Loans With a Credit Card? CONTENT: Why Paying With a Credit Card Might Not Be a Good Idea\n------------------------------------------------------\nThe companies that collect student loan payments generally require cash payments and don't allow you to use a credit card to pay your bills. The following options are available to you instead, but they all come with downsides:\n*   **Use a third-party provider to make monthly payments by credit card.** Services such as Plastiq allow you to pay bills with a credit card, but you'll pay a transaction fee on each payment (Plastiq charges 2.5%, but fees can vary). This charge will add to the cost of your loan.\n*   **Pay off a student loan balance with a credit card.** Some private lenders allow student loans to be paid off with a credit card, which some borrowers do to get rewards. The lender usually charges a transaction fee, however, which could be significant on a large student loan balance and outweigh any potential rewards. You'll also need a credit limit that can accommodate your student loan balance, but pay attention to your credit utilization ratio.\n*   **Transfer a student loan balance to a credit card.** Some credit cards allow student loan balance transfers, which could be beneficial if you qualify for a 0% APR balance transfer offer. You'll have a period of months to pay off the balance interest-free, which could make sense if you know you can get rid of the loans you transferred in that time. But in most cases, you'll pay a fee—often 3% of the transferred balance—which will add to your debt load.\n*   **Pay student loans using a cash advance.** Your credit card issuer may allow you to get a cash advance on your credit line. While you can use this money to make a student loan payment in an emergency, cash advances come with extremely high fees and interest rates that can exceed 25%. Consider this option a last resort. You're likely better off looking into other ways to get relief from student loans, which we'll cover later on.\nInterest fees charged by your student loan issuer might sting, but it's very likely your credit card interest charges will hurt even worse. Unless you've taken advantage of a 0% APR offer or immediately pay off your bill in full, you're likely to pay steep credit card interest fees. The average credit card interest rate is currently more than 17%, which could lead to substantially higher costs over time.\nTake care to protect your credit score while paying down your student loans—not only by paying bills on time, but by keeping credit card balances low. As your balance rises, so does your credit utilization ratio, which is the portion of your total credit limit you're using. Credit utilization is the second most important factor in your credit score, after payment history. Generally, credit scores suffer as utilization grows past 30%. END
 TITLE: Can You Pay Student Loans With a Credit Card? CONTENT: Other Ways to Get Help With Student Loan Payments\n-------------------------------------------------\nIf you're considering using credit cards due to a cash shortfall, there are many other ways to avoid falling behind on student loan payments. Try these alternatives:\n*   **Income-driven repayment**: This is the best option available to federal student loan borrowers who are concerned about affording their loans long term. Income-driven repayment plans limit student loan bills to 10% to 20% of your discretionary income (what you have left after taxes and buying necessities), and you'll also be forgiven any balance that remains after 20 or 25 years. Private loans generally don't offer income-driven repayment. But you can ask your lender about opportunities to reduce your interest rate or pay interest only for a period of time.\n*   **Deferment or forbearance**: Both federal and private student loans come with options for pausing payments temporarily. If your financial hardship will last a short time—while you're between jobs, say—you can apply for deferment or forbearance and get a break from student loan bills.  \n    For federal loans, the option you'll qualify for depends on your circumstances. If you have subsidized or Perkins loans, the government will cover the interest that accrues during deferment. Only forbearance is available to private loan borrowers; lenders often grant it in shorter increments than the federal government does, and interest will always accrue.\n*   **Refinancing**: If you have good or excellent credit, you may qualify to refinance your student loans to a lower interest rate. Your monthly payment likely won't shrink substantially unless you extend your repayment term, but that can cut into interest savings.  \n    For many borrowers, that keeps refinancing from being a money-saving move month to month. But over time, with a lower rate, you could save significantly on student loan interest. Keep in mind that refinancing turns federal loans into private loans, meaning you'll lose access to income-driven repayment and generous deferment and forbearance options.\n*   **Consolidation**: Federal student loan consolidation is similar to refinancing in that it replaces multiple loans with a single new loan. But it won't give you a lower interest rate. Instead, it can lead to an extended repayment term, giving you a smaller monthly payment, and it lets you maintain access to federal loan benefits.  \n    If you're seeking a lower payment for your federal loans, income-driven repayment is typically a better option so you're also eligible for forgiveness. In fact, you must consolidate certain types of federal loans in order to make them eligible for income-driven repayment. END
 TITLE: Can You Pay Student Loans With a Credit Card? CONTENT: Pairing Credit Cards With Student Loans\n---------------------------------------\nPaying student loans with a credit card isn't always a wise choice, due to fees and interest charges that can add up fast.\nA better idea if you're eager to make use of your credit cards? Applying points or cash back rewards you receive on card purchases toward student loans. Some credit cards let you do this directly. But more commonly, you can ask for your rewards in the form of a check or bank account transfer, rather than a statement credit, and use it to make student loan payments.\nBefore using credit for loan payments, get clear on how much it will cost so that you can streamline your finances without putting your credit score or cash flow in jeopardy. END
 TITLE: How to Build Good Credit in College CONTENT: The Importance of Establishing Credit in College\n------------------------------------------------\nOnce you're financially independent, your credit history will have an impact on many parts of your life. Landlords may look at your credit report—which includes payment history for each of your loans and credit card accounts—to determine whether you will be a responsible tenant. In most states, auto insurers will check your credit. Even some cellphone plans require a credit check.\nIf you establish strong credit when you're young, you'll likely have a better chance of qualifying for these things on your own without, for instance, needing a guarantor or co-signer to secure a lease on a new apartment. That can make the process easier and prevent you from having to ask a parent, grandparent or another trusted family member or friend to help.\nYou'll also start developing a long positive credit history, which can serve you in the future when you seek a mortgage, new car loan, graduate school loan or premium credit card. Preparing for life after graduation now will help you make a more seamless transition to living independently. END
 TITLE: How to Build Good Credit in College CONTENT: What Is a Good Credit Score for College Students?\n-------------------------------------------------\nAccording to FICO, the most commonly used credit scoring model, a good credit score is 670 or higher on an 850-point scale. A fair credit score is 580 to 669, and a poor credit score is 300 to 579. That's true for everyone, whether or not you're a college student.\nIt's unlikely you'll have a credit score at the top of the range at first, since a score in the 800s takes time to develop. But it's a good idea for college students to aim for a score of 700 or higher to get access to the lowest interest rates and the most sought-after financial products.\nIf your score is on the lower end, you may have to use a cosigner to get loans and you'll pay more interest on any loans you do get. You may also be disqualified from credit cards that can provide valuable benefits like cash back and travel rewards.\nTo build a good credit score, you'll first have to open your own credit accounts or join an existing account (more on that later). Then, you'll need to demonstrate you can appropriately manage the account by making all monthly payments by the due date and avoiding taking on more debt than you can handle.\nThe factors that most affect your credit score are:\n*   Payment history, or how often you pay your bills on time\n*   Credit utilization, or the amount of your available credit limit you use\n*   Credit history length, or the amount of time you've managed your own credit accounts\nAdditional contributors to your credit score include your credit mix, meaning the different types of credit accounts you have, and how often you open new credit accounts. Limiting requests for new credit shows lenders that you can responsibly handle your finances without needing new lines of credit frequently to afford your expenses. END
 TITLE: How to Build Good Credit in College CONTENT: Do I Need Credit to Get a Student Loan?\n---------------------------------------\nYou do not need a credit history to get most federal student loans, which are made by the government. (Parents and graduate students generally need to undergo a credit check to get federal PLUS loans, however.)\nFor most undergraduate borrowers, that means federal loans are a better choice than private loans, since undergraduates in particular typically don't have a credit history of their own. Federal student loans also come with a range of useful benefits, including flexible repayment plans, forgiveness options and opportunities to pause payments if you need to. Private lenders aren't required to offer the same level of protections for borrowers, and may also carry higher interest rates for many borrowers.\nBut many students may need additional funding to pay for college costs, which is why families may seek private student loans to bridge the gap. Private loans are made by banks, credit unions and online lenders, and whether or not you qualify—or get the lowest interest rates available—depend on your credit. Students can typically get private student loans by having a parent or another trustworthy adult cosign.\nIf you have student loans and can afford to make payments while you're in school, you can begin establishing good credit in college by paying your student loans now. That will jump-start your credit history and add on-time payments to your credit report. You'll also save money on interest, and potentially pay off your loans sooner.\nBut only do so if paying your loans won't jeopardize your ability to pay for other necessities, like housing and transportation. Your top priority should be to graduate from college on time so that you can seek a career that can help you pay off any student loan debt you've taken on. END
 TITLE: How to Build Good Credit in College CONTENT: Tips for Establishing Credit in College\n---------------------------------------\nYou have lots of options for building credit in college, both on your own or by joining another person's credit account to start. Pick the strategy that's most accessible for you, in terms of the time commitment and any deposit you'll have to make. Here are some options:\n*   **Get a secured credit card.** Secured cards work similarly to traditional credit cards, but you'll generally pay a cash deposit equivalent to your credit limit to open the account—say, $200. You may be able to qualify for an unsecured card after a certain number of on-time payments. Secured cards can be a safer alternative to traditional credit cards because their credit limits are generally lower, and they may be easier to get without credit history or independent income of your own.\n*   **Apply for a credit-builder loan.** These accounts are typically offered by credit unions, community banks, lending circles and some online lenders. When you apply, the lender sets up a savings account for you in the amount of the loan you've qualified for, and you make payments toward that account each month. The lender reports your payment history to the three national credit bureaus (Experian, TransUnion and Equifax), and your credit history will show on-time loan payments as you make them—plus, you'll have access to a savings account at the end of the term.\n*   **Join another person's credit card account as an authorized user.** While the previous two options are available to you independent of anyone else, becoming an authorized user requires you to have a parent or another person willing to add you to their account. You'll be able to benefit from their potentially long credit history, and as an authorized user you're not responsible for payments on the account (though you can arrange to pay the account holder for any charges you make to the card). Authorized-user account activity may not have as big an impact on your credit history as managing your own account, but it's a start—especially if you're not yet ready to take on a credit account yourself.\n*   **Have your rent or utility payments reported to credit bureaus.** Another way to build credit is to make sure any regular payments you're already making are reflected on your credit report. There are several services—which are either free or charge a fee—that landlords can use to report your rental payments.\nA free tool called Experian Boost™† can also integrate cellphone and utility bill payments into your Experian credit report, which may improve your FICO® Score☉ . Your credit report at the other credit bureaus won't be affected. Take advantage of another longer-term credit-building strategy in order to make a bigger impact on your credit history. END
 TITLE: How to Build Good Credit in College CONTENT: Good Credit in College Will Pay Off\n-----------------------------------\nIn college, you have a lot of competing priorities, and adding building credit to the list might seem difficult. But pick just one of the strategies above to start, and consider additional ways to establish credit when you're ready to. Growing a strong credit score will take time, which is why it's useful to start the process as early as you can.\nIn the future, you may want to take on a mortgage, get a car or even borrow student loans to help your child fund college. If you have good credit at that point—partially due to your long credit history—you can look back on your credit journey with gratitude that you took it seriously from the start. END
 TITLE: What Is Student Loan Rehabilitation? CONTENT: How Does Student Loan Rehabilitation Work?\n------------------------------------------\nOnce you enter into a student loan rehabilitation agreement, your student loan servicer will assign you a monthly payment tied to your discretionary income. You must make nine payments within a 10-month period on time—which the government defines as within 20 days of the due date—and at the end of your agreement, the loan will no longer be in default.\nThat means your credit report will no longer reflect that the loan went into default, though the late payments leading up to it will remain for seven years. Additionally:\n*   If the government was previously collecting your unpaid debt by garnishing your wages or withholding your tax refunds, those actions will end.\n*   You'll regain the ability to get more federal student aid and take advantage of repayment benefits.\n*   You'll no longer receive communications from collection agencies, which the government enlists help from to recover unpaid debt.\nYou can only rehabilitate a defaulted loan one time, so it's crucial to develop a plan to avoid a future default. Work with your student loan servicer to choose an ongoing repayment plan that you can afford. Consider one of the four income-driven repayment plans, which, similar to your rehabilitation agreement, calculate your monthly payment as a portion of your discretionary income. You'll make payments for 20 or 25 years, depending on the plan.\nIf you choose an income-driven plan, at the end of your repayment period, your unpaid balance will be forgiven. You'll likely have to pay income tax on that amount. Consider using the government's repayment estimator tool to evaluate which plan is best for you and how much of your balance may be left at the end of the repayment period. END
 TITLE: What Is Student Loan Rehabilitation? CONTENT: How Do I Rehabilitate My Student Loans?\n---------------------------------------\nTo pursue student loan rehabilitation, first contact your loan servicer, the private company that collects your payments on behalf of the government. Based on income documentation you provide, the company will assign you a monthly payment amount that's 15% of your monthly discretionary income. Once you make on-time payments for nine months, you can ask for a lower payment than you were initially assigned if you need it.\nIf the government is collecting your debt directly from your paycheck or tax refunds, that may continue during student loan rehabilitation. But these payments won't count as one of your nine required monthly bills. Keep this in mind when you negotiate your payment amount with your loan servicer.\nAt the end of the rehabilitation period, your loan will come out of default, and will be considered in good standing. You'll make payments until the loan is paid off according to the repayment plan you chose through your servicer. Prioritize paying each bill on time to avoid falling behind again. Stay in close contact with your servicer if you need to lower or postpone payments, potentially through forbearance, during periods of financial distress. END
 TITLE: What Is Student Loan Rehabilitation? CONTENT: Will Student Loan Rehabilitation Help My Credit?\n------------------------------------------------\nA major benefit of student loan rehabilitation is its positive impact on your credit. Unlike student loan consolidation (the other default resolution option) rehabilitation removes the record of default from your credit report.\nThat means your credit score may continue to suffer from your previous late payments, but it will likely also benefit from the elimination of the default notation on your credit report. Student loan consolidation happens faster than rehabilitation—within three months instead of nine months—but the record of default will remain on your credit report for seven years.\nWhen deciding between the two routes, check your credit report to identify how dramatically the record of default may be affecting your credit. Consider whether you'd like to apply for new credit, such as a mortgage or car loan, in the near future. Your decision will likely come down to getting out of default fast versus enjoying the long-term benefit of the default record's removal. END
 TITLE: What Is Student Loan Rehabilitation? CONTENT: Staying out of Default\n----------------------\nRehabilitating student loans is a worthwhile way to restore your credit and bounce back from the ongoing financial stress of default. So once you've made the effort to rehabilitate your loans, keeping them in good standing should be a top priority.\nPayment history is the most important factor in your credit score, and the more on-time payments you make going forward, the lower the impact your prior missed payments will have on your score. Successfully rehabilitating a defaulted loan is a major accomplishment; let yourself feel proud and relieved, and resolve to continue that positive behavior for the remainder of your loan term, and beyond. END
 TITLE: How to Negotiate a Lower Interest Rate on Your Credit Card CONTENT: If you carry a balance on your credit card, a higher interest rate, also called an annual percentage rate (APR), can make it harder to put a dent in your debt. When you make payments on a high-APR card, more of your money goes toward interest, which means it takes longer to chip away at the principal balance.\nNegotiating a lower credit card interest rate is one strategy to get out of debt. It can also offer breathing room if you're dealing with a financial emergency that affects your ability to cover all your bills. Here's how to do it: END
 TITLE: How to Negotiate a Lower Interest Rate on Your Credit Card CONTENT: What Is a Good Interest Rate on a Credit Card?\n----------------------------------------------\nThe credit card interest rate you'll qualify for depends on your credit score, the type of card you're interested in and overall market conditions.\nOne way to gauge whether a card's interest rate is \"good\" is to compare it to the average. As of November 2019, the average interest rate on credit card accounts that charge cardholders interest was 16.88%. When negotiating a lower rate on your current cards, aim for a rate that's lower than the average.\nKeep in mind, too, that rewards credit cards will likely charge higher rates than cards that don't offer airline miles or cash back. Similarly, credit cards aimed at those with fair or poor credit and retail credit cards often have higher rates. END
 TITLE: How to Negotiate a Lower Interest Rate on Your Credit Card CONTENT: How to Avoid Paying Interest on a Credit Card\n---------------------------------------------\nYour cards' interest rates won't affect you if you pay off each card's balance in full every single month. That may be easier to do when you take advantage of your card's grace period, which most issuers offer. The grace period is the time between the end of your billing cycle and your payment due date, and it's typically 15 to 21 days.\nPaying off your total balance before the grace period ends means paying no interest on your charges. But if you carry a balance for even one month, your issuer may suspend or eliminate your grace period—meaning you'll pay interest on the outstanding balance and on any new purchases starting from the day you make them.\nCheck your credit card's terms and conditions to understand how your issuer treats the grace period. You may regain grace period privileges if you pay off your total balance for a few months in a row. As a general rule, though, always bring your balance to zero by the due date, and you won't have to worry about access to the grace period or fast-rising interest charges. END
 TITLE: How to Negotiate a Lower Interest Rate on Your Credit Card CONTENT: How a Lower Interest Rate Can Help You\n--------------------------------------\nLowering the interest rate on even one credit card may help you pay off debt sooner, which may also increase your credit scores.\nIt's important to maintain good credit habits after you've lowered your interest rates and paid off debt: Avoid charging more purchases unless there's an emergency—and even then, an emergency savings account should help you avoid having to use credit cards in the first place.\nIf your card issuers hold out and won't lower your rates, be patient and call again to negotiate periodically. Changes in circumstances, available card offers and even different customer service representatives may get you the response you want. END
 TITLE: How to Achieve Financial Freedom CONTENT: What Is Financial Freedom?\n--------------------------\nThere are many ways to feel financially free. You can earn a modest income and experience a great deal of freedom around money if, for example, you define it as being able to take your family on a meaningful vacation once a year. The primary feature of financial freedom is a feeling of security around money: that it will be of service to your goals, rather than a source of stress.\nFor most people, reaching that place involves the following:\n*   **Paying every bill on time each month**: Financial freedom begins when your basic needs are met. That means living without fear of your electricity or water being turned off, and avoiding damage to your credit score with a missed loan or credit card payment.\n*   **Being debt-free, or working toward eliminating your debt**: It's difficult to have a healthy relationship with money when you feel you're not in control of it. When you're in debt, and interest charges make your balance grow faster than you can pay it off, you're also losing money you could be saving instead. Work toward getting out of debt—with the help of a nonprofit certified credit counselor, if necessary—as part of your path toward financial freedom.\n*   **Having at least three months of basic expenses saved**: Maintaining a safety net of savings may be the biggest contributor to financial well-being. It can keep you from worrying about how you'll deal with a job loss or unexpected bills. Experts recommend keeping an emergency fund of three to six months' worth of basic expenses, but you may wish to save more if your income fluctuates month to month. This will also help you avoid accumulating credit card debt to pay for unforeseen costs.\n*   **Saving for goals or experiences beyond emergencies**: The next level of financial freedom is keeping your emergency fund intact while saving for other goals, like retirement, a home, vacations or your child's college costs. Retirement should come first, since you can't borrow for it, and saving up for retirement longer generally means having more when you stop working. You'll know you're on the right track when you're able to allot portions of your paycheck—even if they're small—to several needs simultaneously, including regular bills, debt payoff and short- and long-term savings.\n*   **Not feeling regularly preoccupied with financial concerns**: A key feature of financial freedom is a general feeling of well-being around money. A little bit of worry is natural, but consistent anxiety, fear, shame or uncertainty about the future are signs that you haven't achieved a sense of control over saving, spending or debt repayment. When financial freedom is yours, you can monitor your finances and address issues that come up with openness, confidence and optimism.\n*   **Being able to treat yourself and those you love—responsibly**: A financially free person can use their money in ways that fulfill them, which for many includes gift-giving. Freedom around money gives you the opportunity to, within reason, provide yourself and others with things and experiences that bring joy—whether that's theater tickets or a new yoga mat. END
 TITLE: How to Achieve Financial Freedom CONTENT: How to Start on a Path to Achieve Financial Freedom\n---------------------------------------------------\nThe steps to finding financial freedom correspond to healthy financial habits generally. Everyone can benefit from following these guidelines, no matter your ultimate financial goal:\n*   **Put bills, savings and investing on autopilot**: Harnessing control of your money becomes much easier when you use autopay for as many bills and transfers to savings as possible. You can focus on family, friends, work and play while knowing important tasks are taken care of in the background. That includes signing up for deductions from your paycheck for your workplace-sponsored retirement account. You can also consider choosing target-date funds as retirement vehicles, if they're available at your workplace, which automatically rebalance your investments as you age. Using autopay can ensure you never miss a bill payment, which will go far toward keeping your credit in good shape. Additionally, having your bank automatically transfer money from your checking to your savings account, usually on or just after payday, will help you reach other financial goals.\n*   **Pick a budgeting method**: You won't be able to pay bills and save at the same time if you're not sure where your money is going. Budgeting doesn't need to be restrictive; you can start, for instance, by assigning a flexible percentage of your income to needs, wants, savings and debt payoff using the 50\/30\/20 rule. Or pick from among a range of other budgeting options, and go with the one you're likely to stick to.\n*   **Get help**: Starting to budget and get rid of debt from scratch is hard, and many of us didn't learn how to do it in school or from parents or guides who could teach us. There are several ways to get help now, including from certified financial planners, credit counselors and even online from resources like the Consumer Financial Protection Bureau. You can start with the CFPB's 25 tips to improve financial well-being.\n*   **Regularly monitor—but don't obsess over—your finances and credit**: Keep an eye on your income, savings, debts and credit score so you're never caught off guard and can spot issues—like a missed bill payment—as fast as possible. Try using free tools available online, such as an app like Personal Capital, that give you an overview of all your account balances and net worth. You may be able to access your credit score through your bank or credit card company for free, or use free tools offered by Discover, Capital One or Experian. But don't let tracking finances take over your life. One of the markers of financial freedom is the ability to focus on the things that matter without feeling consumed by money. END
 TITLE: How to Achieve Financial Freedom CONTENT: Why Financial Freedom Can Be a Worthy Goal\n------------------------------------------\nAchieving financial freedom will take time. But it's a useful goal because it focuses on your internal well-being and your relationship to money, instead of encouraging you to fixate on saving a certain amount or hitting milestones by a certain age.\nIt's a wholly individualized approach to personal finance, and it's likely the one with the biggest payoff. When you're financially free, you'll be able to do what you want while knowing you're in good hands, now and in the future. END
 TITLE: Your Options for Getting Out of Student Loan Default CONTENT: What Is Student Loan Default?\n-----------------------------\nStudent loan default is what happens when you've neglected to make payments toward your student loans for a certain period of time. The time it takes to default and the repercussions of doing so will depend on the type of loans you have.\nFor most federal loans, your student loan servicer will report your account as delinquent to the credit bureaus after 90 days of nonpayment, and you'll be considered in default after you haven't made payments for 270 days.\nWhen you default, the whole loan balance comes due. At that point you can either pay it in full or choose a default-repair option through the government. To collect your unpaid balance, the government has the power to garnish wages directly from your paycheck and to withhold your tax refunds. Additionally, records of late payments, delinquency and default all will damage your credit and stay on your credit report for seven years.\nPrivate loans can go into default much faster—even after your first missed payment. (The same is true for federal Perkins loans.) While private lenders can't withhold your pay or tax refunds without a lawsuit, they could sue you to collect the debt. Defaulting on a private loan also means you'll be subject to collection fees and immediate payment of the balance. And just like with a federal loan, your credit will suffer as a result of private student loan default. END
 TITLE: Your Options for Getting Out of Student Loan Default CONTENT: How to Rehabilitate Student Loans\n---------------------------------\nRehabilitation is one of two options available to federal student loan borrowers who are looking to get out of default. It requires you to make nine reduced monthly payments in a 10-month period, and as a result, the default notation will come off your credit report. Late payments before the default will still appear, however. Here's how to complete the rehabilitation process:\n1.  Find the student loan servicer that manages your defaulted federal loan by logging in to My Federal Student Aid online. Using the contact information listed, explain to your servicer that you'd like to opt for loan rehabilitation for your defaulted loan.\n2.  Submit proof of income to your servicer. The company will then calculate a monthly payment amount equal to 15% of your monthly discretionary income. You can ask for a lower payment if the servicer's initial offer is not affordable for you.\n3.  Make nine monthly payments in the amount you've agreed to. If the government is withholding your wages or tax refunds to repay the debt, this may continue while you make payments under a rehabilitation agreement.\n4.  Once you've made nine full, on-time payments, your loan will no longer be listed as in default on your credit report. You'll also regain access to federal financial aid and repayment benefits, and wage garnishment and tax refund withholding will stop.\nYou only get one chance to rehabilitate a defaulted federal student loan—so if you default on that loan again, rehabilitation won't be an option for you. END
 TITLE: Your Options for Getting Out of Student Loan Default CONTENT: How to Consolidate Student Loans\n--------------------------------\nStudent loan consolidation is when the government pays off a previous loan, or multiple loans, and issues you a new direct consolidation loan. It's an option even for federal loans that are not in default: It can simplify repayment and give some borrowers access to repayment programs they couldn't use otherwise.\nIf you've fallen behind on payments, consolidation can help you get your loan out of default faster than rehabilitation. But the default notation will remain on your credit report for seven years, even after your defaulted loan has been consolidated into a new one. Here's how the consolidation process works when a loan is in default:\n1.  Contact your student loan servicer and explain that you'd like to submit an application to consolidate a defaulted student loan.\n2.  If you have the means, you can choose to make three on-time monthly payments on the loan before consolidation. Your loan servicer will determine the payment amount, but according to the U.S. Department of Education, it must be affordable for you. Once the loan is consolidated, you can then choose any repayment plan for the remainder of your payments.\n3.  Alternatively, you can opt to make no payments before consolidating, and then choose an income-driven repayment plan once you've consolidated the defaulted loan. Income-driven plans limit your monthly payment to a percentage of your income. If your defaulted loan is a parent PLUS loan, the only income-driven plan you can choose is income-contingent repayment.\n4.  Once your loan has been consolidated and you're making on-time payments according to your new loan agreement, your loan will be back in good standing. But your credit report will still reflect that it was in default.\nYou can't consolidate a defaulted loan if it's currently subject to wage garnishment, or if you were sued by a loan holder and your debt is being collected as the result of a judgment in court. The garnishment and judgment orders must end before you can consolidate. END
 TITLE: Your Options for Getting Out of Student Loan Default CONTENT: Does Getting Student Loans Out of Default Help Your Credit?\n-----------------------------------------------------------\nGetting out of default can have a positive impact on your credit long term. Late payments from before your loans went into default will continue to negatively affect your credit score, and can't be removed through federal default-resolution methods. But student loan rehabilitation can remove the default status from your credit report, which may help your credit.\nSince payment history is the most important contributing factor to your credit score, making on-time student loan payments after default will give your credit a chance to recover. Make sure to pay other bills on time, too, including credit cards, and keep other debt balances as low as possible. END
 TITLE: Your Options for Getting Out of Student Loan Default CONTENT: Why It's Crucial to Get Out of Default\n--------------------------------------\nIt's natural to feel ashamed or uneasy when you miss one or more student loan payments. But you shouldn't just avoid your loans; your best bet is to address the situation as soon as possible.\nWhile student loan default has far-reaching repercussions, there are multiple ways to regain control of your finances, especially if you have federal loans. The sooner you decide to get out of default, the sooner you can improve your credit and move toward a loan-free life. END
 TITLE: Should I Pay Off My Credit Card With a Personal Loan? CONTENT: Is Personal Loan Debt Better Than Credit Card Debt?\n---------------------------------------------------\nPersonal loans and credit cards can impact your credit score positively if you make payments on time—and negatively if you don't. When you use credit cards, it's best to keep your total balance below 30% of your total credit limit, and the lower the better. Maintaining low balances will reduce your credit utilization ratio, which is the second most important factor in your credit score after payment history.\nBut there are some significant differences between personal loans and credit card debt. Personal loans are a type of installment debt, which means you'll make the same size payment each month without the flexibility to pay less. Personal loans also often come with origination fees, but their interest rates may be lower than what you'd receive on credit cards.\nBy contrast, credit card debt is revolving debt. You can carry a balance and make smaller monthly payments as your budget dictates, as long as you pay the minimum your issuer requires each month. But credit cards charge late fees and, potentially, annual fees, along with higher interest rates than most personal loans. Plus, they may encourage you to spend more, knowing you have a credit limit you can charge up to. END
 TITLE: Should I Pay Off My Credit Card With a Personal Loan? CONTENT: Is It a Good Idea to Pay Off Credit Card Debt With a Personal Loan?\n-------------------------------------------------------------------\nIf you're struggling to afford credit card payments, taking out a personal loan with a lower interest rate and using it to pay off the credit card balance in full may be a good option.\nA debt consolidation loan with a low interest rate could mean owing less per month, which can help you make loan payments on time. A lower interest rate may also leave you with more money to put toward the loan balance, allowing you to pay it off earlier.\nBut before you use a personal loan to pay off credit card debt, consider not only the interest rate you receive, but also the repayment term lenders offer. Choosing a longer repayment term than you would have needed to pay off the original credit card debt could cost you more in interest. If a longer repayment term helps you afford to repay the debt, though, it could protect your credit from the effect of missed payments, making the choice worthwhile. END
 TITLE: Should I Pay Off My Credit Card With a Personal Loan? CONTENT: How to Pay Off Credit Card Debt Without a Personal Loan\n-------------------------------------------------------\nThere are lots of other ways to pay off credit card debt if a personal loan isn't an option for you. Balance transfer credit cards allow you to move your credit card balance to a card with 0% APR for a period of time. This is a solid choice if you have good or excellent credit, which you'll need for a balance transfer card with favorable terms, and you're able to pay off the debt during the interest-free period.\nYou may also choose to send any extra money you earn or save to certain debts to get rid of them, starting with your smallest balance or highest-rate debt. Paying off your smallest debts first, known as the debt snowball method, won't save you as much money as the debt avalanche, during which you'll pay off balances with the highest interest rates first. But the ideal method for your situation is the one that will encourage you to keep going and get your balances down to zero.\nYou might also consider working with a certified credit counselor at a nonprofit credit counseling agency. A credit counselor can provide a free evaluation of your debt and offer suggestions for paying it off, taking into account your budget, debt balances and other financial goals.\nOne additional consideration: As compelling as it may be, it's best not to close the account when your credit card balance is paid off. Closing a credit card account reduces your overall available credit and, if you have a balance on other cards, will increase your credit utilization ratio and have a negative effect on your credit scores.\nOn the other hand, if keeping the account open tempts you keep charging to it, then closing it may be your best bet. END
 TITLE: Should I Pay Off My Credit Card With a Personal Loan? CONTENT: Life After Credit Card Debt\n---------------------------\nWhether or not you close the credit card you've paid off, it's now up to you to be diligent about credit usage in the future. It's important going forward to avoid using credit to spend more than you can comfortably pay back.\nOnce you've paid off your credit card debt—with a personal loan or another debt reduction tool—your goal should be to pay off any balances on your credit cards in full each month. That helps you avoid spending money on interest, and builds a track record of wise credit usage. After all, when you stay out of debt, and keep your credit score in good shape, you'll have access to financial tools that will help you meet goals that matter to you in the future. END
 TITLE: What to Expect If You Default on a Student Loan CONTENT: When Do Student Loans Default?\n------------------------------\nMost federal student loans, including direct loans and Federal Family Education Loans, enter default status after 270 days, or nine months, of nonpayment. These loans are considered delinquent, however, as soon as you fall behind. A record of your missed payments first appears on your credit report—and starts affecting your credit score—after 90 days.\nSome loans enter default status even earlier. Federal Perkins loans can go into default after a single unpaid bill. Private student loans also can go into default as soon as you miss a payment. Check your loan agreement to see at what point after nonpayment your loans default. END
 TITLE: What to Expect If You Default on a Student Loan CONTENT: How Does Student Loan Default Affect Credit?\n--------------------------------------------\nPayment history is the most important factor in your credit scores, accounting for 35% of your FICO® Score☉ , the most commonly used scoring model. That means just one missed payment can negatively impact it, and nine months of skipped bills can lower your score significantly.\nA payment is considered missed if it's more than 30 days overdue. It stays on your credit report, meaning it's visible to lenders, for seven years. The way student loan servicers collect loan bills can also magnify the effect of a missed payment. If you have multiple student loans managed by the same servicer, one monthly payment may cover several loans. So on your credit report, a single missed bill could put multiple loans into delinquency or default.\nAdditionally, when federal loans go into default, your credit report will include a derogatory mark noting that the loan holder has filed a claim with the government to collect on the debt. A collection company may buy your defaulted private student loan debt, and that collection account will also show up in your credit history. Each of these marks will stay there for seven years.\nIf you pay all bills on time and avoid using a substantial amount of your available credit, the impact those negative marks have on your score will decrease over time. END
 TITLE: What to Expect If You Default on a Student Loan CONTENT: How to Rebuild Credit After Student Loan Default\n------------------------------------------------\nFederal student loans come with two structured ways to get out of default, both of which can help you rebuild credit:\n*   **Student loan rehabilitation**: When you rehabilitate a defaulted federal loan, you agree to make nine on-time payments within a 10-month period. You'll generally pay 15% of your monthly discretionary income during this time. For Perkins loans, your loan holder will determine the monthly payment.  \n    Once your loan has been rehabilitated, you'll regain benefits including access to federal student aid. Wage and tax return garnishment will end. Rehabilitation also offers the advantage of removing the default notation from your credit report. Your pre-default missed payments will remain, but the removal of the default record could benefit your credit.\n*   **Student loan consolidation**: You can also turn your defaulted student loan into a direct consolidation loan to get out of default. This process requires you to either make three full, on-time payments toward the defaulted loan before consolidating or to repay the new loan on an income-driven repayment plan.  \n    If you choose this route, the default record won't come off your credit report. But consolidation can be a faster process than rehabilitation, and your new consolidation loan will be listed as current on your credit report as you make on-time payments.\nPrivate lenders generally don't offer defaulted-loan restoration options. But ask your lender what you can do to bring your defaulted loans back into good standing. Be sure to check into whether your private lender will remove any negative marks from your credit report as part of a loan rehabilitation program.\nYou can also work to rebuild credit on your own after default—whether you have federal or private loans—by making use of responsible credit habits:\n*   Pay all bills on time on all your credit accounts, including credit cards and other loans.\n*   If you have credit cards with balances, pay them off completely every month, if possible, and keep the balances you carry from month to month low, or at zero, going forward. Credit utilization, or the amount of available credit you're currently using, is the second-most important factor in your credit score (after payment history).\n*   When you're ready, consider applying for a secured credit card that's meant to improve your credit score. To get a secured card, you'll pay a cash deposit that becomes your credit limit. You likely won't have access to a large credit line, but positive payment history on the account is an important part of improving your credit score.\n### Bouncing Back From Student Loan Default\nWhile student loan default can be distressing—both financially and emotionally—there is a way forward. Take advantage of rehabilitation strategies offered by the government for federal student loans, and reach out to your lender if you have private loans.\nAs difficult as the process may seem, the sooner you address the default and commit to making on-time payments, the sooner your credit can recover. Also, if your loans are in danger of defaulting but haven't yet, take this opportunity to get ahead of the issue and talk to your lender as soon as you can.\nConsider signing up for repayment plans that can lower your bill, or opt to postpone payments until you're back on steadier footing. Aim to avoid missed payments and a record of default so you can keep your credit, and your overall financial health, strong. END
 TITLE: How Your Tax Refund Could Improve Your Credit Score CONTENT: Pay Down Debt\n-------------\nUsing your refund to pay down revolving credit card balances is one of the best ways to boost your credit scores in a flash. That's because as you knock out debt, your credit utilization ratio—the percentage of available credit you're using—drops too. This ratio plays a major role in determining your credit scores.\nExperts recommend keeping your utilization ratio below 30%, but for top scores, below 7% is ideal. To help improve credit, use at least a portion of your refund to make a dent in your debt, and keep your utilization low going forward.\nIf you have multiple credit cards, prioritize paying off the ones with the highest interest. That way you'll get the added benefit of saving money on interest charges. END
 TITLE: How Your Tax Refund Could Improve Your Credit Score CONTENT: Catch Up on Late Payments\n-------------------------\nIf you recently missed a credit card or loan bill, you may be able to use your tax refund to catch up and avoid a hit to your credit scores.\nCredit card issuers typically don't report late payments to the credit bureaus until a full billing cycle, or about 30 days, has elapsed. Use your tax refund to make a payment before those 30 days are up, and you may avoid a late payment appearing on your credit report. That's crucial, because payment history is the most important factor in your credit scores.\nAdditionally, your issuer can charge you up to $29 in fees the first time you pay late, and $40 if you pay late again within the next six billing cycles. But if you don't regularly miss payments and you can catch up right away, the card issuer may waive the late fee. END
 TITLE: How Your Tax Refund Could Improve Your Credit Score CONTENT: Consider Applying for a Secured Card\n------------------------------------\nMaybe you're looking to build credit from scratch, or to bounce back from a blow to your credit scores. Your tax refund can give you the flexibility to open a secured credit card, which can help you establish credit history with regular, on-time payments.\nSecured cards work similarly to traditional credit cards, but they require a refundable security deposit that typically becomes your credit limit. This deposit acts as collateral for the card issuer, protecting it in case you don't keep up with payments.\nYou don't even have to use your full tax refund to open up a secured card. You can usually choose your deposit amount, which for many cards starts at $200.\nSecured card issuers typically report your payment history to one or more of the three major credit bureaus (Experian, TransUnion and Equifax), so responsible use can help you build a positive credit history. That means making all payments on time, using as little of your available credit as possible and paying off your charges in full every month. END
 TITLE: How Your Tax Refund Could Improve Your Credit Score CONTENT: Build an Emergency Fund\n-----------------------\nStarting or growing a savings account for emergencies won't have an immediate effect on your credit scores. But it will safeguard your scores from the effects of going into debt to cover an unforeseen expense, like a medical bill or car repair.\nThe ideal amount to save depends on the predictability of your income and expenses, and on your individual lifestyle. A healthy emergency fund generally should cover three to six months of basic expenses, but you might decide you'd feel secure with more or less. Your tax refund can give you a jump-start on your savings account, and you can contribute a small amount monthly thereafter to hit your goal.\nOnce you build your savings, you'll be able to avoid using a credit card in a pinch. But once you've dipped into your fund, make sure to replenish it as soon as you can. END
 TITLE: How Your Tax Refund Could Improve Your Credit Score CONTENT: Put Your Tax Refund to Work\n---------------------------\nA tax refund might be the biggest windfall you receive this year, so use it wisely.\nWhile you can—and should—spend a portion of it on something you enjoy, make sure the majority of your refund helps you make progress on financial goals that would have been difficult to achieve otherwise. Strong credit is one of the most powerful financial tools at your disposal. Make improving it your focus at tax time. END
 TITLE: Are Moving Expenses Tax Deductible? CONTENT: Who Can Deduct Moving Expenses?\n-------------------------------\nAs explained in greater detail in the instructions for IRS Form 3903, as of 2018 the only U.S. taxpayers who can claim tax deductions for moving expenses are active-duty military members relocating under permanent change of station orders. Qualified expenses include costs related to moving personal property and household goods, and travel costs associated with the move, including an allowance for personal-vehicle travel at 18 cents per mile. END
 TITLE: Are Moving Expenses Tax Deductible? CONTENT: How It Used to Work—and May Again\n---------------------------------\nThe tax reform law, formally known as the Tax Cuts and Jobs Act of 2017, took effect January 1, 2018. That means if you moved for non-military work during 2018—or if you will anytime now through 2025, when the 2017 provisions will expire unless Congress extends them—you can't deduct those moving expenses.\nPrior to 2018, you could deduct expenses related to a work-related move, provided your move met the following conditions, or \"tests\":\n*   **Start of work test:** For you to deduct relocation expenses, your move had to have taken place within one year of you starting work at your new location. This applied to moves initiated following a work reassignment, acceptance of a new job in the destination community, or to moves made with the intention of seeking (and eventually obtaining) work in a new location.\n*   **Distance test:** Your new workplace had to be at least 50 miles farther from your previous residence than your old workplace was. For example, you if previously traveled 15 miles to work from your house or apartment, your new place of work would have to be at least 65 miles from that residence for your moving expense to qualify for a deduction.\n*   **Time test:** You had to have worked full time at the new job location for at least 39 weeks during your first year of employment there to qualify for the moving expense deduction. If you were self-employed at the time of the move, you'd need to have worked 78 weeks during your first two years at the new location. In either case, you could deduct the expenses from taxes paid for the year the move took place, even if you hadn't yet satisfied the full time-test requirements. END
 TITLE: Are Moving Expenses Tax Deductible? CONTENT: What if My Company Pays My Moving Expenses?\n-------------------------------------------\nThe 2017 tax reform also changed how payments employers make to employees to cover moving costs are taxed. Before 2018, those reimbursements were treated as \"above the line\" deductions from your taxable income: Even if you didn't claim any itemized deductions on your tax return, you could still subtract moving expenses from your gross income before calculating your taxable income. Not under the new tax law: Now you must declare those reimbursements as income, and they are subject to tax.\nOne important exception to this could provide 2018 tax relief for a select few taxpayers: If your employer reimbursed you in 2018 for a move you completed in 2017, you do not have to pay tax on that sum. Details on this exception are spelled out in an IRS guidance memo.\nThese tax changes indirectly increase the cost of relocating for work, and you should plan accordingly if a move is in your future. Or sit tight until 2025 and see if Congress allows the old deductions to take effect once more. END
 TITLE: How to Budget Using the 50\/30\/20 Rule CONTENT: The initial step when using any budgeting strategy is to understand how much you're earning. Take a look at your paychecks and bank account statements for the past three months and identify your average amount of after-tax income per month.\nNext, you'll allocate that money in the following way:\n*   **Necessities: 50% of income.** Ideally, you'll spend a maximum of half your monthly income on essential expenses like rent or mortgage payments, groceries, utility bills and minimum debt payments to keep your accounts in good standing.\n*   **Discretionary items: 30% or less of income.** If the prior category is \"needs,\" this is \"wants.\" Perhaps you have a Netflix subscription, you go to concerts often or you like to travel. These expenses enrich your life, but they're not strictly necessary. Aim to spend, at most, 30% of your income on discretionary items and experiences.\n*   **Savings and debt payments: 20% or more of income.** This category includes savings for retirement, emergencies and specific medium-term goals, such as buying a home. It also includes debt payments beyond your minimum monthly bill. If you need to contribute more than 20% of your income to savings and debt, it's best to pull from the discretionary spending category.\nTo figure out how much to save for each goal, some rules of thumb may help. Experts recommend saving 10% to 15% of your pretax income for retirement, for instance—and at least saving up to any employer match your company 401(k) plan provides. For emergencies, experts also suggest keeping three to six months' worth of expenses in a savings account you can easily access. It's OK if you can only set aside $25 or $50 per month for emergencies to start, as long as you save regularly. END
 TITLE: How to Budget Using the 50\/30\/20 Rule CONTENT: How the 50\/30\/20 Rule Can Help You Pay Off Debt\n-----------------------------------------------\nIn addition to helping you save more, the 50\/30\/20 rule can give you a framework to allocate more money toward getting out of debt.\nAs part of the \"savings and debt payments\" category, you'll pay extra beyond the minimum debt payment required so you can apply more of your money toward principal balances. Using the 50\/30\/20 rule, identify how much extra you can comfortably pay while addressing other priorities, too.\nFor instance, say you earn $2,500 per month after taxes. You'll aim to spend no more than $1,250 on necessities and $750 on wants, leaving $500 for savings and debt payments. If you have a credit card balance of $2,000, you may decide to focus more energy on debt payoff this year. So perhaps you'll limit your wants to $500 per month and put the extra $250 toward credit card bills instead, giving you eight months to pay off your balance. The other $500 in the savings category can be allocated to retirement and emergency savings accounts.\nIn general, it's best to attack high interest credit card debt first, then move on to the balance with the next-highest interest rate. You'll save the most money in interest that way. END
 TITLE: How to Budget Using the 50\/30\/20 Rule CONTENT: What Are Alternatives to the 50\/30\/20 Rule?\n-------------------------------------------\nThe 50\/30\/20 rule isn't for everyone, and it's worth experimenting with different approaches to see what sticks. Here are some alternative budgeting strategies:\n*   **Zero-based budgeting**: With this approach, you'll assign a function to each dollar you earn. That means you'll create many more categories than the three used in the 50\/30\/20 rule. For example, you might use \"dining out,\" \"personal care\" and \"clothing.\" If you earn $2,500 per month, you'll make a list of all your expenses, savings goals and debts, and ensure that you use your entire $2,500 (without going over). This method is best for people who won't feel overwhelmed by the record-keeping required, and whose income is relatively stable month to month.\n*   **Envelope system**: Another option is to set aside money for each of your categories in cash—in envelopes labeled for each expense—which limits your spending to the amount you've identified. This requires a high level of organization, and isn't always realistic if you pay certain bills online or by credit card.\n*   **Multiple-account budget**: You can also use your bank account to do the budgeting for you. This means creating multiple accounts—which is particularly easy at online banks—and giving them jobs, similar to the categories in the 50\/30\/20 rule. One account could be for necessities, like housing payments and utility bills; another account for savings; and another for fun stuff. You'll set up regular transfers from your main checking account to your other accounts so you can save and budget without thinking about it. END
 TITLE: How to Budget Using the 50\/30\/20 Rule CONTENT: A Flexible Method, but One of Many\n----------------------------------\nWhile the 50\/30\/20 rule is a reasonable starter budget, you might find that you prefer one that's more or less stringent. They key is to budget consistently, which will help you achieve savings and debt payoff goals while keeping spending in check. The ideal budget isn't one that others use, or that sounds good on paper; it's one that you can stick to and maybe even enjoy. END
 TITLE: Student Loan Refinancing: What It Is and How to Do It CONTENT: Can You Refinance Student Loans?\n--------------------------------\nStudent loan refinancing can be a good deal, but not everyone is eligible. Lenders prefer to work with borrowers who have good or excellent credit, a track record of on-time bill payments and reliable income. These characteristics help demonstrate to lenders that you're likely to repay the loan as agreed.\nIf you won't qualify on your own, however, you can apply with a cosigner who meets the credit and income requirements. That person will be responsible for repaying the loan if you can't. Make sure to have a candid conversation about this possibility, and how that could affect their own finances.\nIf you're ready to get started refinancing your student loans, follow these steps:\n*   **Check your credit score**: Since your credit score is one of the most important eligibility factors, find out where you stand before you apply. A good FICO® Score☉ is 670 or higher, and a higher score betters your chances of qualifying and receiving a favorable interest rate.\n*   **Pay down debt**: Another factor lenders look at closely is your debt-to-income ratio (DTI), which is the amount of debt you have compared with your gross income. To lower your DTI ratio, consider paying off debt before applying to refinance. Reducing credit card balances, for instance, could make you a more attractive potential refinance borrower.\n*   **Shop around**: Compare multiple quotes from lenders before making your final refinancing decision. Many lenders offer the opportunity to check the interest rate you could qualify for without submitting a full application. In that case, the lender performs a soft inquiry, which won't affect your credit. Also, take a look at the repayment term, or how long you'll be required to repay the loan; fees you'll be charged; and, if you're using a cosigner, whether it's possible for him or her to be released from the loan after a certain number of payments.\n*   **Gather required documents**: Once you've chosen a lender, organize the documents you'll need to submit. Typically, you'll need to provide a copy of your government-issued ID; a pay stub or proof of employment; a federal W-2 form for the most-recent tax year; your latest tax return if you're self-employed; and a payoff statement from your current lender, detailing how much of your loan balance is left to repay. END
 TITLE: Student Loan Refinancing: What It Is and How to Do It CONTENT: What Credit Score Do You Need to Refinance a Student Loan?\n----------------------------------------------------------\nLike other private student loans, refinance loans require good or excellent credit to qualify.\nWhile 670 is generally the base credit score you'll need to be eligible, a higher score is even better. That's because when refinancing student loans, your aim is to get a new loan at an interest rate that is meaningfully lower than your prior rates. The better your credit—and your overall financial profile—the lower the interest rate you'll likely receive.\nIf your FICO® Score is below 670, explore working with a cosigner or wait and apply after your credit improves. You can also consider other ways to pay off student loans faster on your own. You can send extra funds to the loans with the highest interest rates to get rid of them sooner, for instance, which will also save you money on interest over the long term. END
 TITLE: Student Loan Refinancing: What It Is and How to Do It CONTENT: How Refinancing Student Loans Is Different From Consolidation\n-------------------------------------------------------------\nThe terms \"refinance\" and \"consolidate\" are sometimes used interchangeably when referring to student loans. But while it's possible to combine multiple loans into one through the process of refinancing, the term \"student loan consolidation\" is most often used to describe a specific strategy available through the federal government.\nFederal student loan consolidation is when you join several federal loans together, leaving you with a single outstanding balance and monthly payment. It's different from refinancing, though, because you don't need good credit to qualify, and you also won't get a lower interest rate.\nInstead, your new rate will be a weighted average of your previous loans' rates, rounded up to the next one-eighth of 1%. Your interest rate will also be fixed, while refinance lenders generally give you the option to choose between fixed and variable interest rates. Federal student loan consolidation is a good idea if you're having trouble keeping track of multiple loan bills, or if you need to consolidate to be eligible for certain repayment programs. END
 TITLE: Student Loan Refinancing: What It Is and How to Do It CONTENT: What Are the Advantages of Refinancing a Student Loan?\n------------------------------------------------------\nThe most compelling reason to refinance a student loan is to get a lower interest rate, which could save you a significant amount over time.\nFor example, say you have $10,000 in student loans, with five years left to repay, at an average rate of 7%. If you refinance to a five-year loan term at 4% interest, you'd save more than $800 in interest by the time you pay it off. The higher your current rate, and the better your credit, the more you stand to save if you qualify.\nRefinancing to a shorter loan term could increase your monthly payment, but it would mean saving even more in interest. You could also pay off your loan faster, which frees up more cash to save for a home, retirement, your child's college education or other goals.\nPlus, combining loans with a range of due dates and terms into a single loan could help you keep track of your bills more closely and help you prevent late payments from affecting your credit scores. END
 TITLE: Student Loan Refinancing: What It Is and How to Do It CONTENT: What Are the Downsides of Refinancing a Student Loan?\n-----------------------------------------------------\nThe biggest downside to student loan refinancing is the loss of federal loan benefits. Federal student loans come with unique protections for borrowers, which can provide a safety net if you lose your job or face unexpected medical bills. Benefits you'd lose from refinancing a federal loan include:\n*   **Generous deferment and forbearance options**: Federal student loans allow you to pause payments for up to three years in some circumstances, which is longer than what private loans typically allow. If you have subsidized federal loans, you won't be charged interest during a period of deferment, which prevents your balance from growing in that time.\n*   **Income-driven repayment**: If your income dips, or you're unable to afford federal loan payments on a long-term basis, you can sign up for one of four repayment plans that calculate your monthly bill based on a percentage of your income. Private lenders generally do not offer this option. When you apply to refinance, lenders want to see that you have sufficient income to repay the loan in full.  \n    If there's a possibility you'll earn less, change careers or experience other life events that affect your ability to make full payments during your repayment term, it may be best to avoid refinancing federal loans. That way, you maintain access to income-driven repayment if you need it.\n*   **Forgiveness programs**: Federal loans also offer unique forgiveness options to some borrowers. If you work full time for a government agency or qualifying nonprofit, you could have your federal loan balance forgiven after 120 payments through the Public Service Loan Forgiveness program. Some teachers can receive forgiveness over a five-year period through the Teacher Loan Forgiveness program. END
 TITLE: Student Loan Refinancing: What It Is and How to Do It CONTENT: Should You Refinance Your Student Loan?\n---------------------------------------\nWhen deciding whether to refinance a student loan, weigh the potential advantages and drawbacks—primarily whether it will save you enough money to make the process worthwhile. Ask yourself:\n*   What interest rate can you qualify for, and is it lower than your current average rate?\n*   Will you lose access to federal loan benefits you may need in the future? If so, consider refinancing private loans only, or just a portion of your federal loans.\n*   Do you have the means to quickly pay off your loans? You'll save even more money from refinancing if you choose as short a loan term as you can manage. Otherwise, if you extend your loan term, you'll pay more in interest. END
 TITLE: Student Loan Refinancing: What It Is and How to Do It CONTENT: Weigh the Pros and Cons\n-----------------------\nRefinancing can mean big savings in certain circumstances. But it's important to make sure you meet the requirements, understand how refinancing will affect your loans and choose the terms that work best for your budget. While refinancing isn't for everyone, if you stand to benefit, the rewards can be substantial. END
 TITLE: 11 Ways to Pay Off High Interest Credit Cards CONTENT: 1\\. Try Paying With Cash\n------------------------\nWhen used wisely, credit cards can help you build a strong credit score, and can give you access to valuable rewards. But it's not wise to use one if you can't pay off your balance each month. Otherwise, interest will pile up, and you'll be at risk of feeling discouraged by a growing balance.\nIf you're carrying debt, your first course of action should be to pause your credit usage and switch to using cash. This will keep you from going into further debt and it may affect your spending behavior for the better. The physical act of using cash could make you second-guess big purchases more often than using a credit card would. If you'd rather not carry cash, use your debit card instead. END
 TITLE: 11 Ways to Pay Off High Interest Credit Cards CONTENT: 2\\. Consider a Credit Card Balance Transfer\n-------------------------------------------\nA smart way to use a balance transfer is to move credit card debt from a high interest card to one that offers a promotional 0% annual percentage rate (APR) period, typically 12 months or longer. That means you have the opportunity to pay down debt without incurring more interest, as long as you eliminate your debt by the time the promotional period ends.\nYou may be charged a balance transfer fee, which is a percentage of the transferred balance, and you'll generally need good or excellent credit to qualify. Note, too, that you won't be able to move debt between cards issued by the same financial institution.\nBut a balance transfer can lead to big savings. Say you have $5,000 in debt on a card at 18% APR. If you wanted to pay it off in 12 months, you'd pay $458.40 per month and $500.80 in interest. If you transferred the balance to a card with 0% APR—and opted for a card with no balance transfer fee—you'd pay $416.67 per month and $0 in interest. END
 TITLE: 11 Ways to Pay Off High Interest Credit Cards CONTENT: 3\\. Pay More Than the Minimum Amount Due\n----------------------------------------\nTo get rid of debt on a faster timeline, it's crucial to pay more than the minimum payment your credit card issuer assigns you. Your minimum payment is typically a fixed amount, such as $25 or a small percentage of your balance, likely 1% to 3%. Making only that payment will typically keep you in debt for longer than you might prefer.\nWhen you're focused on knocking out debt, paying extra helps reduce your principal balance, which, in turn, means you'll be charged interest on a lower amount. Anything you pay beyond the minimum is helpful. You may find motivation in calculating how much faster you could pay off your debt if you send an additional $25, $50 or more to your balance per month. END
 TITLE: 11 Ways to Pay Off High Interest Credit Cards CONTENT: 4\\. Lower Your Expenses\n-----------------------\nIt can feel impossible to pay down debt when you don't have cash to spare. That's why a crucial step in the payoff process is to look for ways to save money. That might mean tracking expenses for a month or two and identifying places where you can cut back.\nFor instance, if your cellphone bill is one of your costliest recurring expenses, ask your provider if it offers new plans—even prepaid ones—that give you equivalent service for less money. Another common source of debt is food, so you could also consider instituting a plan to regulate how much you spend on dining out. Plan to cook more meals yourself and minimize what you spend when you do dine out with others.\nAny money you save from these changes can go into an account you use to pay off credit card debt. If you lower your cellphone bill from $80 to $60 per month, for instance, set up a recurring transfer for $20 per month to your paydown account, and make extra credit card payments from there. END
 TITLE: 11 Ways to Pay Off High Interest Credit Cards CONTENT: 5\\. Increase Your Income\n------------------------\nAside from reducing expenses, you also can add to your income and put that money toward credit cards. Think about tapping into the sharing economy to make extra cash through services such as Airbnb. Or leverage your skills and work as a freelancer or consultant in your free time. END
 TITLE: 11 Ways to Pay Off High Interest Credit Cards CONTENT: 6\\. Sell Your Old Stuff\n-----------------------\nDecluttering gives you the opportunity to streamline and update your space—and you can apply any money you make to credit card debt.\nSell used clothes at local thrift or consignment stores, or online through services like Poshmark and ThredUp. You can also sell used electronics on a marketplace like Swappa. Miscellaneous items and furniture are good candidates for Facebook Marketplace, Craigslist or eBay. END
 TITLE: 11 Ways to Pay Off High Interest Credit Cards CONTENT: 7\\. Ask for Lower Interest Rates\n--------------------------------\nWhile it may seem intimidating, you might have luck asking your credit card issuer for a lower interest rate. If you have a history of making on-time payments, and you've been a customer for a number of years, you're more likely to get a positive response.\nYou can provide reasons for your request, including the fact that you're experiencing a financial hardship, or mention that you've received offers from competing card issuers at lower rates. If the issuer says no, ask for a temporary rate reduction instead. This can be a useful alternative if you don't qualify for a balance transfer credit card but you'd like to pay off the debt at a lower rate over a fixed period of time. END
 TITLE: 11 Ways to Pay Off High Interest Credit Cards CONTENT: If you have debt across multiple credit cards, the balance on the card with the highest rate is the most expensive to keep. Aim to pay it down first with any extra money you save or earn, an approach called the debt avalanche. Once that balance is gone, you'll apply the extra amount you paid to the card with the next-highest interest rate.\nHere's how it works. Say you have a credit card with a $3,000 balance at 17% APR and another with a $2,000 balance at 12% APR. If you pay off the higher interest card within six months instead of 12, you'd save about $133 in interest. By contrast, targeting the lower interest card would save you just $62 in the same time frame. END
 TITLE: 11 Ways to Pay Off High Interest Credit Cards CONTENT: 9\\. Look Into the Snowball Method\n---------------------------------\nYou might decide, however, that it's more exciting to pay off the $2,000 balance first, which could motivate you to maintain your payoff plan. If so, use the debt snowball method to get rid of your credit card debt. Instead of focusing on high interest cards, you'll pay off the smallest balance first, then apply extra money to the next-smallest balance. END
 TITLE: 11 Ways to Pay Off High Interest Credit Cards CONTENT: 10\\. Make Two Payments Each Month\n---------------------------------\nAnother way to reduce the interest you pay is to make more than one credit card payment per month. If you're currently paying $50 a month now, try doubling it to $100, and attempt to make a payment each time you get a paycheck.\nAn added benefit of this strategy is that it can strengthen your credit score. You won't be at risk of missing a payment, and you'll reduce your credit utilization ratio, which is the amount of available credit in use relative to your credit limit. That's the second most important factor in your credit score, after payment history. END
 TITLE: 11 Ways to Pay Off High Interest Credit Cards CONTENT: 11\\. Consider Credit Counseling\n-------------------------------\nYou don't have to develop a credit card payoff plan and budgeting strategy alone. A certified counselor at a nonprofit credit counseling agency can assess your debt and help you consider which of the approaches outlined here are best for you.\nYou may be offered the option to use a debt management plan, during which the counselor will negotiate with your creditors to reduce your interest rate, monthly payment or overall balance. But this costs a startup fee and a monthly fee of $20 to $30 on average, and you may be required to close your credit card accounts. Weigh the pros and cons before moving forward. END
 TITLE: 11 Ways to Pay Off High Interest Credit Cards CONTENT: The Bottom Line\n---------------\nIf you're feeling burdened by high interest credit card debt, start small. Make a list of your debts first to understand your current circumstances, then pick just one payoff strategy to try. You can always add on another strategy, or switch approaches, later on.\nThe important thing is to begin the process as soon as you can. You'll limit the amount of interest you pay, and you can potentially improve your credit score by reducing your credit card balances, and therefore your credit utilization ratio. But perhaps more important, you'll feel empowered knowing you're making an effort to live debt-free, at last. END
 TITLE: Consolidating Student Loans: Should You Do It? CONTENT: Can I Consolidate Student Loans?\n--------------------------------\nThere are two types of entities that can consolidate student loans for you: private companies, like banks and online lenders, and the federal government. How to qualify depends on the type of consolidation you pursue. Let's break them down.\n*   **Student loan consolidation through a private company**: The goal of privately consolidating loans is to lower your interest rate. It's also referred to as refinancing. A private lender will pay off your current loan or loans and issue you a new one for the total balance you'd like to refinance. You can qualify for a new interest rate and terms based on your credit score, income, employment history and other financial factors. It's possible to refinance private loans only, federal loans only or both together. Your new loan will be private.\n*   **Student loan consolidation through the federal government**: The federal government also offers a consolidation option, but there's no credit check required, and it won't give you a lower interest rate. Instead, federal consolidation is a strategy to qualify certain loans for programs like income-driven repayment and Public Service Loan Forgiveness. You may also choose to consolidate federal loans if you want a single monthly payment or a fixed interest rate, since some older loans have variable interest rates. Your loans will stay federal. END
 TITLE: Consolidating Student Loans: Should You Do It? CONTENT: Private Student Loan Consolidation\n----------------------------------\nConsider private student loan consolidation, or refinancing, in the following circumstances:\n*   **Your credit and income will qualify you.** Generally, lenders look for good or excellent credit, which is typically a credit score of 670 or higher. You'll also need to demonstrate solid income and meet a lender's debt-to-income ratio (DTI) requirements. Your DTI is your total monthly debt payments divided by your gross monthly income, and the lower your DTI, the more likely you are to repay loans as agreed, in lenders' eyes. You'll likely have an easier time refinancing if your DTI is below 50%.\n*   **You have high interest private loans.** The biggest benefit of private student loan consolidation is the potential for interest rate reduction. Before moving forward, consider how much you stand to save from the process. You're most likely to see savings if you have high-interest loans—typically from private lenders—and you're eligible for a lower rate. Federal loans typically come with lower interest rates to start. Plus, refinancing them will mean giving up federal loan protections including payment reduction programs, long deferment periods and forgiveness options.\n*   **You have access to a creditworthy cosigner.** If you can't qualify for private student loan consolidation on your own, you can apply with a cosigner. That person will be responsible for repaying the loan if you can't, so make sure they understand the risks of cosigning. Some lenders will allow you to release the cosigner after a certain number of on-time payments, and if you meet other financial requirements. Check your loan agreement for a policy like this if you decide to use a cosigner.\nIf you decide to move forward with private student loan consolidation, here's how to do it:\n*   **Check your credit score.** First identify whether you're a good candidate for private consolidation. You can check your Experian credit score for free, and if it's not in the good to excellent range, explore cosigner options or consider working to improve credit before applying.\n*   **See the rates you may qualify for.** Many lenders offer the opportunity to prequalify for refinancing on their websites. They'll perform a soft inquiry, which won't affect your credit score, and you can compare likely rates from multiple lenders before submitting a full application.\n*   **Choose your terms.** Lenders generally offer multiple repayment terms, such as five years, eight years or 10 years. Pick the shortest term you can handle, which will keep your interest payments to a minimum.\n*   **Gather necessary documents.** When you've chosen a lender you'd like to work with, collect the documents you'll typically need to submit with your application. These can include pay stubs, tax forms like your federal W-2 form and a payoff statement telling your new lender how much of your current loan balance it will need to pay off.\n*   **Keep making regular loan payments.** During the refinancing process, continue paying your previous loans until your new lender confirms you can stop. That will help you avoid inadvertently missing a payment, which could hurt your credit score. You'll now make one payment per month to your new lender. END
 TITLE: Consolidating Student Loans: Should You Do It? CONTENT: Federal Student Loan Consolidation\n----------------------------------\nFederal student loan consolidation is, in most cases, a tactical move rather than a money-saving strategy. Here's when it makes sense:\n*   **You must consolidate to qualify for certain repayment programs.** If you have Federal Family Education Loans or PLUS loans, the government requires that you consolidate them into a direct consolidation loan to be eligible for some income-driven repayment plans. These plans lower your bill to a portion of your income. The same goes for the Public Service Loan Forgiveness program, known as PSLF, which provides loan forgiveness to public service workers after 120 qualifying payments.\n*   **Simplifying payments would prevent you from falling behind.** Consolidating federal loans gives you a single monthly payment. The downside, though, is that your interest rate will be the weighted average of your previous rates, rounded up to the next 1\/8 of 1%; it will not be reduced. Your outstanding interest also gets added to your balance, meaning interest will accrue on a bigger loan amount. That means it's worthwhile to consolidate to simplify payments only if you're currently at risk of missing them.\nYou can consolidate federal loans for free online. Here's how:\n*   **Choose the loans you want to consolidate.** You don't have to include all your federal loans in the new consolidation loan. Perkins loans, for instance, come with forgiveness benefits you'll lose if you consolidate them. Consider consolidating only your non-Perkins loans.\n*   **Choose a repayment plan.** If you're consolidating to qualify for an income-driven repayment plan or PSLF, pick a new repayment plan for your consolidation loan. To do so, you'll submit a separate income-driven repayment plan request form online, and you can ask the government to put you on the plan with the lowest monthly payment if you're not sure which to choose.\n*   **Submit a direct consolidation loan application online.** You can complete the application online in a single sitting—it generally takes about 30 minutes. View a sample version of the application in advance to make sure you have all documents ready beforehand. END
 TITLE: Consolidating Student Loans: Should You Do It? CONTENT: How Does Student Loan Consolidation Affect Credit?\n--------------------------------------------------\nIf you consolidate federal loans to keep track of payments, student loan consolidation has the potential to protect your credit score. Payment history is the most important factor in calculating your credit score, accounting for 35% of your FICO® Score☉ . Prioritizing paying bills on time can keep it strong.\nThe same goes for private consolidation: While you likely already have good credit before refinancing, having only a single payment to manage can help you maintain it. The application process for private consolidation, however, may initially have a negative impact on your credit score, as it requires the lender to perform a hard inquiry when you apply. If your score dips, it will likely recover after a few months. END
 TITLE: Consolidating Student Loans: Should You Do It? CONTENT: The Bottom Line\n---------------\nWhile private and federal student loan consolidation are approaches for borrowers with different needs, both require a thorough analysis of whether you're a good candidate. But the potential to enjoy a streamlined payment or lower interest rate could mean, mercifully, turning your focus to goals other than student loans. END
 TITLE: How Does a Repayment Plan Work? CONTENT: For many types of loans, a repayment plan refers to the monthly payment and loan term a lender assigns you. The amount you pay per month depends on how much you borrowed and the interest rate. Here are some examples:\n*   **Federal student loans**: Federal student loans come with a range of repayment plan options. In most cases, you'll receive a grace period of six months after you graduate or leave school when you won't be required to make payments.  \n    Once you begin repayment, the standard repayment plan breaks up the amount you owe into 10 years' worth of fixed payments. But you can also choose the 10-year graduated repayment plan, which starts with lower payments and increases every two years; the 25-year extended repayment plan; or one of four income-driven plans, which limit payments to a percentage of your income and provide forgiveness on the remaining balance after 20 or 25 years.\n*   **Private student loans**: Banks and online lenders that provide private student loans generally do not offer the same scope of repayment plan options. Not all private loans offer a grace period, and income-driven plans are not common. You'll typically make fixed payments over five, 10 or 15 years, and the amount you pay corresponds to the interest rate you receive based on factors such as your credit score.\n*   **Personal loans**: Similar to private student loans, you'll generally repay personal loans in fixed monthly amounts, at an interest rate that depends on your credit score. Personal loan terms are often two to five years.\nA repayment plan on a mortgage, by contrast, helps you get back on track after a period of missed payments. While your mortgage lender already charges you a fixed amount per month, a repayment plan adds a portion of the past-due amount to your bill for a period of several months until you're caught up.\nIt's a strong option if you're now in a better financial situation and you're motivated to avoid falling further behind. You'll need to demonstrate to your lender that you can afford the repayment plan, which may incorporate late fees. END
 TITLE: How Does a Repayment Plan Work? CONTENT: What Are the Benefits of a Repayment Plan?\n------------------------------------------\nThe right student loan repayment plan can make your payments more affordable while you search for a job and navigate life after graduation.\nIf you opt for a graduated repayment plan, for instance, you'll make lower payments to start, allowing for some flexibility in the first few years of repayment. An income-driven repayment plan can keep your bills manageable if your loan balance is high compared to your income and you need a long-term affordability solution.\nA mortgage repayment plan can be beneficial if you'd otherwise be at risk of foreclosure. If you're coming back from a short period of financial hardship, perhaps due to job loss or medical bills, choosing a repayment plan can get your mortgage back into good standing.\nEven if you can't afford to enter a repayment plan now, you may be able to put your mortgage into forbearance until you can. Let your lender know if you're expecting a bonus from work or another additional source of income, and the lender may let you pause payments and start a repayment plan when your income increases. END
 TITLE: How Does a Repayment Plan Work? CONTENT: Is a Repayment Plan the Right Option for You?\n---------------------------------------------\nEvery student loan borrower must sign up for a repayment plan, but it's up to you to choose the one that matches your lifestyle and financial resources. You can compare federal student loan repayment plan options using the government's Repayment Estimator tool.\nWhen deciding whether to opt for a mortgage repayment plan, first consider whether it's possible for you to refinance your mortgage. If you're only just starting to struggle to make payments, you may qualify to refinance to a new loan with a more affordable monthly payment. You'll avoid missed payments appearing on your credit report, and you'll be able to steer clear of foreclosure.\nIf you don't qualify to refinance, however—particularly if you've already fallen behind on payments—a mortgage repayment plan could be for you. While your negative payment history to date will show up on your credit report, foreclosure would be more damaging. A repayment plan could be the difference between losing and staying in your home, and it's a worthwhile option if you meet the requirements. END
 TITLE: How Does a Repayment Plan Work? CONTENT: The Bottom Line\n---------------\nA repayment plan's terms and benefits depend on the loan it's attached to. When you choose the right repayment plan for your circumstances—and if you opt for a mortgage repayment plan to get back in good standing—you can ensure that paying back a loan won't jeopardize your ability to meet the financial goals that matter most to you. END
 TITLE: 6 Ways to Build Credit Before College CONTENT: 1\\. Understand How Financing Impacts Your Life\n----------------------------------------------\nKnowing how financing and credit work will help you make good money decisions as soon as you're faced with them. Many consumers spend time bouncing back from issues like high credit card debt, bankruptcy and skipped loan payments. By starting to think about your credit at a young age, you have the opportunity to avoid these concerns in the first place. Here are the basics to know:\n*   **Your credit history is a record of your behavior as a consumer.** It shows all the loans and credit cards you've applied for, how much you've spent and whether you repaid them on time. Lenders, and even landlords, will take a look at your overall financial conduct and decide whether to lend money or rent an apartment to you. Your credit report also yields a three-digit credit score, which creditors look at closely to determine your creditworthiness.\n*   **Lenders use your credit report and score to determine the interest rate you'll get on loans and credit cards.** Lenders charge interest on top of the original loan amount in exchange for the opportunity to pay off the loan over time. A good credit report and score will lead to a lower interest rate, since it will show lenders you will most likely keep up with your payments. You may also be required to pay fewer fees or have the chance to repay the loan over a shorter period of time.\nFor instance, when applying for a car loan, your credit affects the interest rate and length of the loan term you're quoted. In the fourth quarter of 2018, borrowers with the highest credit scores got the shortest loan terms on new car loans—62.82 months on average. Those with the lowest credit scores received average terms of nearly 10 more months.\nPlus, the average monthly new car payment was $544 for those with the lowest scores, compared with $517 for those with the highest scores. That means having a low credit score would add more than $6,500 to the cost of financing a new car. END
 TITLE: 6 Ways to Build Credit Before College CONTENT: 2\\. Have a Plan Before Going to College\n---------------------------------------\nUnderstand credit before setting foot on campus so you can avoid taking on more debt than you need. First, use the results of your Free Application for Federal Student Aid (FAFSA) to discuss with your family how much you can afford to pay for college.\nIf your target college doesn't offer enough financial aid to cover the cost, consider taking out federal student loans before turning to private loans. Federal loans come with more benefits and ways to lower your payment in the future if you need to.\nMost important, calculate how much your total monthly student loan bill will be after you graduate. Consider how borrowing for four or more years will affect it, and make a budget before you graduate so you can prepare to pay the bill on your new graduate's salary.\nConsciously weigh the pros and cons of getting a credit card in college too. Your goal when using a card at 18 should be to build credit, not to pay for items you're unable to afford otherwise. Use the strategies below to avoid the potential pitfalls of building up debt in college. END
 TITLE: 6 Ways to Build Credit Before College CONTENT: 3\\. Get a Starter Credit Card\n-----------------------------\nYou can't qualify for a credit card under the age of 21 without either a cosigner or the ability to demonstrate you have sufficient income to make payments. But there are some credit cards that are specifically worthwhile for those new to credit. They can help you build up history without the temptation to spend more than you can pay back.\nA secured credit card is a strong first credit card option, since it requires a minimal cash deposit that becomes your credit limit. Opt for a credit limit of $200 to $500, and you'll be less likely to overspend on the card—yet you'll have the chance to make timely payments that can strengthen your credit score. Make sure the card issuer reports your bill payments to the three major credit bureaus (Experian, TransUnion and Equifax).\nYou can also ask a parent or another trusted adult to add you to their credit card account as an authorized user. You can make purchases, and payment history will show on your credit report, but you won't be legally responsible for paying the bill. END
 TITLE: 6 Ways to Build Credit Before College CONTENT: 4\\. Build Credit With On-Time Payments\n--------------------------------------\nThe biggest factor in your credit score is how frequently you pay your bills on time. Payment history accounts for 35% of your FICO® Score☉ , the one lenders most commonly check. From your very first loan or credit card payment, set due date reminders on your phone—or, even better, schedule automatic payments from your checking account each month.\nYour No. 1 goal from the beginning of your credit journey should be never to miss a bill payment, since doing so has the largest impact on your score. END
 TITLE: 6 Ways to Build Credit Before College CONTENT: 5\\. Don't Spend More Than You Can Afford\n----------------------------------------\nThe next most important factor in your credit score is how much of the available credit you've been given you actually use. Your score will suffer if, say, you've been given a credit limit of $1,000 and you regularly carry a balance of $900 from month to month. Instead, plan to pay off your total credit card bill every single month.\nThat means never buying something you can't afford to cover from your checking account by the time your credit card bill comes due. Credit cards give you extra time to pay for a big purchase, but taking more than 30 days to pay it off will affect your score and cost money in interest. END
 TITLE: 6 Ways to Build Credit Before College CONTENT: 6\\. Stay on Top of Your Credit\n------------------------------\nTo build and strengthen your credit score, monitor it regularly. You can check your credit score for free with Experian and many other services, including tracking programs that your bank or credit card issuer might offer.\nWatching your score's progress could motivate you to keep it moving higher. Plus, you can take notice right away if, say, it drops due to an accidental missed payment. Watching your score change over time is one of the best ways to build your understanding of credit. END
 TITLE: 6 Ways to Build Credit Before College CONTENT: The Bottom Line\n---------------\nCommitting to building credit at 18 or younger will likely make it more possible for you to get the things you want later on, like an apartment, a car or a premium credit card. Good credit will also help you secure the best terms and interest rates on financial products, saving you money. Though it requires research and forethought now, taking action on your credit while young will almost certainly pay off. END
 TITLE: What to Know Before You Buy Health Insurance CONTENT: Know Where and When You'll Need to Enroll\n-----------------------------------------\nMost people get their health insurance through an employer, but you can't just sign up anytime. If you're starting a new job, you may be offered health insurance immediately, but some employers make new employees wait as long as 90 days before they can enroll. Employees who've been with the company for longer than that will have to wait for the company's health care _enrollment period_ before they can enroll in health insurance coverage or make changes to an existing plan. Open enrollment for employer-sponsored health insurance plans can vary depending on the employer, but it generally takes place in the fall.\nFind out when your employer's open enrollment takes place so you can be sure to make any changes, such as switching from one type of plan to another.\nIf you are unemployed or your employer doesn't provide health insurance, you can buy coverage on your state's Marketplace, accessible through Healthcare.gov, or directly from an insurance company or agent. Check with your state's Marketplace to confirm the open enrollment dates. Open enrollment for plans sold on the health insurance exchange at Healthcare.gov generally runs from mid-November to mid-December. Due to COVID-19, however, most states are reopening their enrollment period for three extra months, from February 15 to May 15.\nWhat if you need health insurance but you missed open enrollment? Generally, you must have a \"qualifying event\" to enroll in a health insurance plan through your employer or the Marketplace. The most common qualifying events include:\n*   Involuntarily losing coverage, such as by losing your job. (Voluntarily canceling your insurance doesn't count as a qualifying event.)\n*   Gaining a dependent, such as having or adopting a child\n*   Getting married\n*   Getting divorced\n*   Becoming a U.S. citizen or lawful resident\n*   Moving permanently\n*   Having a change to your income that affects your eligibility for premium tax credits or cost-sharing subsidies on the Marketplace\n*   Your employer-sponsored health insurance becomes unaffordable or no longer provides minimum value\n*   You gain access to a Qualified Small Employer Health Reimbursement Account (QSEHRA) or Individual Coverage Health Reimbursement Arrangement (HRA)\nQualifying events can be complicated and vary from state to state; check with your employer or visit your state's Marketplace to confirm what is considered a qualifying event. In most cases, you'll need to provide proof of the qualifying event, such as your marriage license or your new baby's birth certificate. END
 TITLE: What to Know Before You Buy Health Insurance CONTENT: Understand the Types of Health Insurance Plans and Networks\n-----------------------------------------------------------\nYour health insurance premiums and out-of-pocket costs can vary widely depending on the kind of health insurance plan you choose. There are four broad types of plans, and each one manages your care to a greater or lesser degree.\n*   **Health Maintenance Organization (HMO)**: In this type of plan, you'll browse your HMO's provider network to choose a primary care physician (PCP) who coordinates your medical care. If you need to see a specialist, for example, you'll first have to get a referral from your PCP and preapproval from your insurance company. Except for emergency services, you must see providers within the HMO network in order for care to be covered by insurance.\n*   **Exclusive Provider Organization (EPO)**: As with an HMO, services with an EPO are covered only if you use providers within the plan's network (with an exception for emergency services). However, you typically don't need to choose a PCP and can visit any doctor, specialist or hospital you want without a referral as long as you stay in-network.\n*   **Point-of-Service (POS)**: With this type of plan, you generally choose a PCP from within the network and need referrals from that provider to see specialists. Unlike an HMO or EPO, you may be able to get referred to specialists outside the network and receive limited benefits for their services; however, services from in-network providers are covered at a higher rate.\n*   **Preferred Provider Organization (PPO)**: The most flexible kind of health insurance plan, PPOs generally don't require a PCP and give you the option to see any doctor or specialist you like, inside or outside the plan's network of preferred providers. You don't usually need a referral to a specialist, although you may need preapproval from your insurance company. You'll pay less if you use providers within the PPO network, but care from out-of-network providers is often covered to some degree. PPOs give you more control over your care, but typically charge higher premiums than HMO, EPO or POS plans.\nEven within the same type of health insurance plan, benefits can vary greatly, so be sure to read the details of a specific plan carefully before making a decision. If you want to see specific doctors, contact the doctors to confirm they accept the plan you're considering. Need to take ongoing medications? Find out if the plan covers those prescriptions before you enroll.\nAdditionally, plans within the Marketplace are broken up into four \"metal\" categories that differ in terms of the level of coverage you'll receive: Platinum, Gold, Silver and Bronze. Lower-tier plans, such as Bronze and Silver, can save you a lot on your monthly premium but you'll be responsible for paying more out of pocket when and if you do need to use your coverage.\nIf you missed the enrollment period for health insurance or don't qualify for Marketplace subsidies and can't afford the full premiums, you may want to consider a short-term health insurance plan. These plans typically have low premiums and offer coverage that takes effect right away, with no waiting period. Despite their name, you may be able to renew short-term health insurance for as long as 36 months, depending on your state's regulations.\nHowever, short-term health insurance has some important limitations to be aware of. It usually does not cover pre-existing conditions, and may not cover routine exams or preventative care, maternity visits, mental health care or prescriptions. As a result, short-term health insurance is best used as a stopgap measure, rather than a long-term health care solution. END
 TITLE: What to Know Before You Buy Health Insurance CONTENT: Compare Out-Of-Pocket Costs\n---------------------------\nFor most of us, cost is a key concern when purchasing health insurance. To get the most for your money, be sure to consider the following out-of-pocket costs when comparing different plans.\n*   **Co-insurance**: When a health insurance plan has co-insurance, the insurance company pays a certain percentage of your medical costs, and you pay the rest. Co-insurance is the amount you're responsible for, so in a plan with 10% coinsurance, you pay 10% of your health care costs and the insurance company pays 90%.\n*   **Copayments**: Copays are flat fees you pay when you receive health care services; with your insurance company handling the remainder of the bill. For example, if a doctor visit costs $120 and your copay for a doctor visit is $20, you pay $20 and the insurance company covers the other $100. Health insurance plans generally have different copays for different types of care, such as office visits, emergency room visits or visits to specialists.\n*   **Deductibles**: Some plans require you to pay out of pocket until you hit a set amount called the _annual deductible_ before insurance coverage for your health care expenses kicks in. In most cases, there is one deductible for prescriptions and a separate deductible for health care. Often, certain health care services, such as preventive or maternity care, are not subject to the deductible.\n*   **Out-of-pocket maximum**: Insurance plans set limits on the amount individuals and families must pay out of pocket each year for copays, coinsurance and deductibles. Once you reach your out-of-pocket maximum, the insurance company covers all of your medical costs for the rest of the plan year.\nJust as with car insurance or homeowners insurance, health insurance premiums are the monthly fee you pay for coverage. If you get health insurance through your employer, the employer typically covers the lion's share of the premiums. If you get your insurance from the Marketplace, you may be eligible for premium tax credits that drastically reduce your premium costs—in some cases, to nothing. END
 TITLE: What to Know Before You Buy Health Insurance CONTENT: Consider a Health Care Savings Plan\n-----------------------------------\nLooking for ways to save on health insurance? You may be able to reduce the cost of premiums and health care by setting up a health care savings plan. There are two types of plans available: HSAs and HRAs.\nA **health savings account (HSA)** can be used to set aside pre-tax money you will use for qualified health care costs, such as copayments, coinsurance, medication and medical procedures. You must have a high deductible health plan (HDHP) to qualify for an HSA.\nYou may have access to an HSA through your job; if not, you can set up your own. For 2021, the maximum annual HSA contribution limit is $3,600 if you have individual coverage and $7,200 if you have family coverage. Because HSA contributions are deductible on your federal income tax, they may reduce your income enough to qualify you for Marketplace tax credits and subsidies. Some employers contribute to their employees' HSAs, which can lower your health care costs even more.\nA **health reimbursement arrangement (HRA)** is an account your employer opens for you. The employer contributes to your account; you can use the money for qualified health care costs, tax-free. There's no contribution limit, but you can't put money in the account yourself, so you'll be limited by how much your employer decides to contribute. And since your employer owns the HRA, you'll lose any money in the account if you lose or leave your job. END
 TITLE: What to Know Before You Buy Health Insurance CONTENT: Make the Right Choice\n---------------------\nBuying health insurance may not be as exciting as shopping for a new car, but it's an important purchase that can help ensure an unexpected illness, accident or surgery doesn't leave you with a massive medical bill. Unpaid medical debt can damage your credit score if it's sent to a debt collector, potentially making it harder to qualify for loans or credit cards in the future. Choosing the right health insurance for your needs can help keep both your body and your bank account in good shape. END
 TITLE: How Much Does Health Insurance Cost? CONTENT: Insurance premiums are the price you pay for your health insurance coverage, whether or not you actually use it. Last year, the cheapest Bronze coverage (the lowest-tier coverage sold through the Marketplace) averaged $331 per month for one person. The premium for employer-sponsored health insurance averaged $622 per month for one person.\nHowever, average premium costs don't mean much when you're shopping for health insurance. First, your costs may vary widely from the average depending on several factors (more on those below). Second, the full premium is rarely the amount you'll actually pay. People who buy insurance through the Marketplace can qualify for tax subsidies that cover some or all of their premium costs. Many employers who offer health insurance pay most, if not all, of their employees' premiums. On average, last year a person with employer-sponsored health insurance paid about $103 per month.\nKeep in mind that when you actually use your health insurance, you may be responsible for other costs including:\n*   **Deductible**: This is the amount you have to pay out of pocket per year before insurance begins to pay your health care expenses.\n*   **Coinsurance**: If your plan has coinsurance, you pay a percentage of your medical bills and the insurance company pays the remainder. A plan with 20% coinsurance, for example, means you're responsible for 20% of the bill.\n*   **Copayments:**: Copays are flat fees you pay for specific types of medical care; the insurance company covers the rest. For instance, if your doctor charges $150 for a visit and your copay for an office visit is $30, you pay $30 and the insurance company pays the remaining $120.\n*   **Out-of-pocket maximum**: Insurance plans set limits on the amount individuals and families must pay out of pocket each year for copays, coinsurance and deductibles. Once you reach your annual out-of-pocket maximum, the insurance company covers all your medical costs for the rest of the year. END
 TITLE: How Much Does Health Insurance Cost? CONTENT: What Impacts the Cost of Your Health Insurance Premiums\n-------------------------------------------------------\nThe Affordable Care Act (ACA) limits the information health insurance companies can consider when setting premium rates. Under the ACA, plans cannot take into account your medical history or pre-existing conditions. They can consider only the following five factors:\n1.  Age: On average, the older you get, the more likely you are to need health care. Under the ACA, premiums for older people may cost as much as triple those for younger ones.\n2.  Location: Health insurance premiums cost more in some states than in others because available insurance plans, Marketplace premium tax credits and the cost of providing health care vary from state to state.\n3.  Tobacco use: Smoking has been shown to increase your risk of cancer and other diseases, so smokers typically pay higher premiums.\n4.  Whether you buy individual, spousal or family coverage: The number of people covered under your plan affects premium costs.\n5.  Plan type: Health insurance plans vary in how they restrict or manage your access to health care and use of providers. Exclusive Provider Organizations (EPOs), Health Maintenance Organizations (HMOs) and Preferred Provider Organizations (PPOs) all manage care to greater or lesser degrees. For example, some plans require preapproval to see a specialist or won't pay if you see a doctor outside your network. Within these categories, some plans also have higher copays, coinsurance or deductibles. Generally, the more restrictions on providers and the higher your out-of-pocket costs, the lower your premiums will be. If you want more flexibility and lower out-of-pocket costs, your premiums will be higher.\n**Your income**: Insurance companies don't consider your income when setting premiums, but if you're buying insurance through the Marketplace, your income determines whether you qualify for premium tax subsidies to lower the cost of your insurance. END
 TITLE: How Much Does Health Insurance Cost? CONTENT: How to Save Money on Health Insurance\n-------------------------------------\nWant to lower the cost of your health insurance? Take these steps to maximize your savings.\n**Check your work benefits.** Employer-provided health insurance is generally the most affordable option, so if your job offers insurance, it's often wise to take it. If your employer doesn't provide health insurance, see if you can get coverage through a spouse, parent or partner's employer-provided plan.\nWondering if you can get a lower price on the Marketplace? Probably not. Marketplace health insurance is intended for people who don't have access to employer-based health insurance. It's sometimes possible to get Marketplace insurance if your employer offers coverage, but you generally won't qualify for premium tax credits or subsidies.\n**See if your employer offers additional benefits such as an HSA or an HRA.** You can reduce your health insurance costs by opening a Health Savings Account (HSA). An HSA lets you set aside money tax-free to use for qualified health care costs, including coinsurance and copays. Your employer may offer an HSA, or you can open one on your own. HSAs offer many tax advantages; however, you must have a high deductible health plan (HDHP) to qualify.\nA health reimbursement arrangement (HRA) is an account your employer sets up and contributes to on your behalf. You can withdraw the money tax-free for qualified health care expenses. However, you can't make contributions of your own, and if you leave your job, you lose the money in the account.\n**See if you qualify for government assistance or subsidies.** Even if you make too much money to qualify for public health insurance such as Medicaid or CHIP, you may qualify for premium tax credits if you buy health insurance through the Marketplace. Depending on your income, you might also be eligible for cost-sharing reductions that lower your deductibles, copays and coinsurance, reducing your costs even more.\n**Choose a plan that fits your health care needs.** In general, health insurance plans with lower premiums provide fewer benefits and require you to shoulder more of the cost of your medical care. Choosing this type of plan could save money if you are young, healthy and rarely visit the doctor. However, it could backfire if you get in a car accident, need surgery or have a major medical expense.\nHealth insurance plans with higher premiums generally have lower out-of-pocket costs for copays and deductibles. If you take several prescriptions, have a chronic condition, visit the doctor often or are older, choosing a plan with higher premiums could ultimately save money by reducing your out-of-pocket expenses.\nYour credit score could be negatively affected if you don't pay your medical bills or if you pay them late. However, medical providers may wait as long as 180 days before sending your account to a debt collector, and the three major credit bureaus (Experian, TransUnion and Equifax), will wait an additional 180 days before adding medical debt-related collections to your credit report. Choosing a health insurance policy that fits both your needs and your budget helps ensure you can handle your medical costs. END
 TITLE: How Much Does Health Insurance Cost? CONTENT: How Do You Get Health Insurance When You're Unemployed?\n-------------------------------------------------------\nLosing your job doesn't have to mean losing your health insurance. Depending on your employer, you may be eligible to continue your existing coverage for a limited time (and often at great cost) under the Consolidated Omnibus Budget Reconciliation Act (COBRA). You might also be able to join your spouse, domestic partner or parent's health insurance plan.\nYou can also purchase health insurance on your state's Marketplace or purchase individual coverage directly from an insurance company or agent. Before buying health insurance, make sure you have researched all your options and understand the plan costs, exclusions and limitations.\nIf losing your job substantially reduced your income, you may be eligible for Marketplace premium tax credits that reduce your premiums to practically nothing. You might even qualify for coverage through a government health plan such as Medicaid or CHIP. END
 TITLE: How Much Does Health Insurance Cost? CONTENT: Health Insurance and Your Finances\n----------------------------------\nThere's a lot to think about when selecting health insurance—premiums are just one part of the package. To maximize both savings and coverage, carefully consider your health care needs, your finances and your options. Whether your health insurance premiums are withdrawn from your paycheck or you pay them yourself, budgeting enough money to cover the cost helps ensure that you, your bank account, and your credit related to medical bills all stay healthy. END
 TITLE: How to Get Health Insurance When You’re Unemployed CONTENT: Choose COBRA Coverage\n---------------------\nUnder the Consolidated Omnibus Budget Reconciliation Act (COBRA), companies with 20 or more employees must offer former employees the option to keep their employer-provided health insurance for 18 months after terminating employment. In addition, many states have their own similar laws that apply to smaller employers. Within 14 days of losing or quitting your job, your employer must provide you with written notice of your COBRA rights explaining how COBRA works and how to decline it or elect to continue your health insurance.\nOnce you receive this notice, you generally have 60 days to accept COBRA coverage and 45 days after that to pay your first premium (the federal government has temporarily extended this time frame due to COVID-19). Once you pay your premium, your coverage takes effect retroactive to the date you lost your employer-provided health insurance policy.\nThe big advantage of COBRA coverage is its ease and continuity. You don't have to do a bunch of research and comparisons; you get to keep your doctors and enjoy all the same benefits. However, be ready for sticker shock, because your former employer may require you to pay the entire premium yourself. They may have totally or partly covered your premium while you were employed, but that park ended when you were separated from the company. Try negotiating with your former employer to have them continue paying their portion as part of your severance package. If your employer doesn't feel like footing your bill, however, they can charge you up to 102% of the premium costs (the 2% is an administrative fee). In 2019, the annual premium for an employer-sponsored family health insurance averaged $20,576—a steep bill at the best of times, but especially when you're unemployed.\nTaking advantage of COBRA while you're unemployed might make sense if:\n*   Your employer is paying part of the premiums.\n*   You've already paid a great deal toward your annual deductible and don't want to start over with a new health plan.\n*   You want to stay with your current plan and medical providers because you're pregnant, undergoing medical treatment or are in a similar long-term situation.\nChoosing COBRA coverage can limit your ability to buy a plan in the Health Insurance Marketplace later, so investigate Marketplace options before you make your decision. (More on the Marketplace below.)\nFor more details about COBRA, see The Department of Labor's publication An Employee's Guide to Health Benefits Under COBRA. END
 TITLE: How to Get Health Insurance When You’re Unemployed CONTENT: Get on Your Spouse's, Domestic Partner's or Parent's Health Insurance\n---------------------------------------------------------------------\nIf your spouse or domestic partner's job offers health insurance coverage to employees' spouses and dependents, getting added to their plan can be a simple solution. (If you're under age 26, you may be able to enroll in a parent's employer-sponsored health insurance.)\nA spouse's or partner's health insurance is a known quantity: Your spouse is already familiar with the benefits, costs and deductibles, and knows the level of coverage, which can help in assessing its value. On the other hand, if their coverage doesn't fit your needs, you may want to explore other options.\nNormally, you can enroll in health insurance only once a year, during \"open enrollment,\" which takes place in the fall. However, leaving your job is considered a qualifying event, and gives you 30 days to sign up for your spouse's or partner's plan no matter the time of year. You'll need to complete an application and may need to provide proof that you are losing your health insurance. END
 TITLE: How to Get Health Insurance When You’re Unemployed CONTENT: Investigate Marketplace Health Insurance\n----------------------------------------\nHealth insurance plans that meet Affordable Care Act (ACA) requirements are sold through the Health Insurance Marketplace at HealthCare.gov; some states have their own marketplaces. It's worth investigating Marketplace coverage before making any insurance decisions, because you may qualify for tax credits that will pay part or even all of your premiums.\nAll Marketplace plans must cover preexisting conditions and 10 essential health benefits, including prescription drugs, maternity care and mental health care. Plans come in four \"metal\" levels: Bronze, Silver, Gold and Platinum. Bronze plans have the lowest premiums, but they cover only about 60% of your health care costs and have high deductibles, so you'll pay more out of pocket if you need care. Platinum plans have high premiums but low deductibles and cover about 90% of your health care costs. Silver and Gold plans fall somewhere in the middle. In addition to tax credits, you might also qualify for \"cost-sharing reductions\" that lower your out-of-pocket costs for deductibles, copayments and coinsurance; if so, you must buy a Silver plan to take advantage of these reductions.\nNormally, you can only purchase Marketplace plans during open enrollment. However, when you lose job-based health insurance, you qualify for a Special Enrollment period and have 60 days to enroll in a Marketplace health plan, regardless of the time of year.\nIf you've elected COBRA, however, you qualify for Special Enrollment in a marketplace plan only if your COBRA period is ending or your employer stops contributing to your COBRA premiums. Otherwise, you'll have to wait until the Marketplace open enrollment period to drop COBRA coverage and sign up for a Marketplace plan.\nYou can \"window shop\" on the Marketplace anonymously before applying for a plan. Just visit HealthCare.gov, put in your ZIP code, and estimate your family income for the year in which you want coverage. You'll be shown a variety of available plans from private insurance companies, including estimated prices and subsidies you may qualify for.\nOnce you see a plan you like, apply for coverage through the Marketplace. You can do this yourself or get help by phone or in person from a trained assister. You can also use a local insurance broker who sells Marketplace plans. This can be a good idea because unlike other assisters, brokers can legally recommend specific plans and suggest ways you can maximize savings and subsidies while getting the best coverage.\nOnce approved, you'll make premium payments directly to your insurance company. Keep in mind that Marketplace coverage doesn't start when your premiums start; make sure you know when your coverage begins. END
 TITLE: How to Get Health Insurance When You’re Unemployed CONTENT: Find Out if You're Eligible for Medicaid\n----------------------------------------\nMedicaid is a federal program that provides health insurance for people with low incomes. It may be known by different names in different states, and eligibility can vary from state to state. When you apply for Marketplace health insurance, your eligibility for Medicaid is automatically assessed. If you are determined to be eligible, the appropriate state agency will contact you about applying.\nIf you have children aged 19 and younger, and your income is too high to qualify for Medicaid, your children might be eligible for health insurance through the Children's Health Insurance Program (CHIP). When you apply for Medicaid, you'll be notified if your children qualify for CHIP.\nYou can enroll in both Medicaid and CHIP year-round—no need to wait for open enrollment. END
 TITLE: How to Get Health Insurance When You’re Unemployed CONTENT: What About Private Health Insurance?\n------------------------------------\nYou can buy health insurance outside of the Marketplace several ways:\n*   Directly through a health insurance company.\n*   From an insurance agent representing one insurer.\n*   From an insurance broker representing many different insurance companies.\nSome individual insurance plans sold outside the Marketplace are ACA-compliant, but many are not, so it's important to read the fine print carefully when considering such a policy.\nShort-term health insurance plans are a special type of individual health insurance. These plans last one year and can sometimes be renewed for up to 36 months. Unlike Marketplace policies, however, short-term health insurance policies aren't required to meet ACA guidelines. As a result, these plans typically offer more limited coverage than Marketplace plans; for example, they may not cover prescription drugs, pregnancy care or mental health care. They often have higher deductibles and may place an annual cap on the dollar amount of benefits you can receive.\nShort-term plans aren't required to cover preexisting conditions or even sell insurance to people who have them. If you do get a short-term plan and you have a preexisting condition, you'll likely pay more in premiums than if you didn't.\nComparing policies available in the individual insurance market can be confusing. Working with an insurance broker can help you navigate your options. END
 TITLE: How to Get Health Insurance When You’re Unemployed CONTENT: Should You Ever Go Without Health Insurance?\n--------------------------------------------\nThe federal fine for not having health insurance is no longer in place, although some states have their own penalties. (In California, for instance, a family of four that goes uninsured for all of 2021 would face a penalty of at least $2,250.) Should you take the risk and make do without health insurance?\nA fine will be the least you have to worry about if you break your arm, get appendicitis or have a heart attack and don't have health insurance. The average hospital admission in the U.S. cost over $24,680 in 2018, according to KFF.org; the average admission for surgery cost $47,345. Perhaps it's not surprising that medical costs are a leading cause of U.S. personal bankruptcies. Purchasing at least minimal coverage can help provide peace of mind, knowing that you're covered if a costly illness or accident occurs while you're in between jobs. END
 TITLE: How to Get Health Insurance When You’re Unemployed CONTENT: Choosing the Right Health Insurance When You're Unemployed\n----------------------------------------------------------\nThere's a lot to think about when looking for health insurance while unemployed. You'll need to consider your health care needs as well as your budget. In addition to premium costs, you should also assess deductibles, copayments and coinsurance, out-of-pocket maximums and any caps on coverage.\nOnce you've found the right health insurance plan, be sure to make your payments on time. Setting up automatic payments from your bank account or a credit card can help to ensure you don't miss a payment. Late payments may negatively affect your credit score and might even cost you the health insurance you worked so hard to get. END
 TITLE: Why You Should Begin Estate Planning in Your 20s CONTENT: Why Estate Planning in Your 20s Is Important\n--------------------------------------------\nAlthough you likely won't have to worry about it for yourself for many years to come, it's important to know what happens when you (or even a loved one) passes. When you die, your estate may have to go through _probate_, a court proceeding that oversees how your assets are distributed. If you have a will, probate is a simple process where the court verifies that your will is genuine and ensures the estate's executor distributes your assets properly. And if you have a living trust, you can often avoid the process altogether.\nIf you don't have a will or trust, the judge makes decisions about your estate and appoints an administrator to carry out those decisions. Your family could wait months or years to receive money from your estate, and could pay a significant amount in probate fees. The judge may also make decisions you wouldn't agree with about your property or guardianship of children.\nWhether or not you have many assets, putting an estate plan in writing ensures you're in charge of your health care, your finances and what happens to your property if you die. Sadly, the pandemic has awakened Americans of all ages to the importance of estate planning. According to Caring.com, 27% of 18- to 34-year-olds now have wills, up from 16% in 2020.\nIf you're married or have children, it's easy to see why estate planning in your 20s matters. But even if you're single and don't have many assets, estate planning gives you control of your property, which would otherwise be taken by the state. Wouldn't you rather leave your bank account, car or 401(k) plan to your sister, best friend or favorite charity than to the government? END
 TITLE: Why You Should Begin Estate Planning in Your 20s CONTENT: Other Estate Plan Elements You May Need\n---------------------------------------\nIf you have young children, your will should name a guardian and trustee for them. A guardian takes custody of your children and raises them; a trustee manages their money. Often, these are the same person, but they don't have to be. Name a backup guardian and trustee as well.\nIf you have significant assets, such as a house, or if you have a complicated family situation, such as an ex-spouse and children, consider setting up a living trust. The trust is a legal entity that holds your assets, protecting them from creditors after you die and eliminating the need to go through probate. END
 TITLE: Why You Should Begin Estate Planning in Your 20s CONTENT: How to Start Your Estate Plan\n-----------------------------\nCreating an estate plan and making sure it's done right can be quite affordable. For example, health care power of attorney and advance directive forms are available free from your state attorney general's office. When creating your will, make sure it complies with state law so it will be considered valid. Options for a full estate plan include:\n*   Websites such as LegalZoom, Nolo, RocketLawyer and Trust & Will can help you complete a will, power of attorney and other estate planning documents, often with support from estate planning attorneys.\n*   You can also use a do-it-yourself template to draft a will and have a local attorney review it.\n*   Many attorneys offer flat-rate estate planning packages, ranging from a few hundred dollars for a basic will to a few thousand dollars for an estate plan with a trust. Check the Martindale directory of attorneys and the National Association of Estate Planners & Councils to find an attorney near you. END
 TITLE: How Do I Defer My Student Loans? CONTENT: Who Qualifies for Student Loan Deferment?\n-----------------------------------------\nYou may be eligible for deferment if you are enrolled in school, on active-duty military service, unemployed or undergoing financial hardship. To qualify for student loan deferment, you generally need to work with your loan servicer or lender and fill out an application. END
 TITLE: How Do I Defer My Student Loans? CONTENT: What Student Loans Can I Defer?\n-------------------------------\nAll types of federal student loans are eligible for deferment. You can defer payments on direct subsidized loans, Perkins loans and subsidized consolidation loans without accruing additional interest during the deferment period. You can also defer payments on direct unsubsidized loans, unsubsidized Stafford loans, direct PLUS loans, FFEL PLUS loans and unsubsidized consolidation loans, but you will accrue interest on the loan during the deferment period.\nIf you're required to pay the interest on your student loans during deferment, you can either pay the interest as it accrues or have it added to your loan balance when deferment ends.\nRefer to the chart below to see how interest is typically handled during deferment of different types of loans.\nSource: Department of Education END
 TITLE: How Do I Defer My Student Loans? CONTENT: How Long Can You Defer Student Loans?\n-------------------------------------\nThe length of your student loan deferment will depend on the type of deferment for which you're approved. For example, deferment based on financial hardship or unemployment can last up to three years. Deferment based on attending school or military service may last as long as you continue to meet the qualifications. Keep in mind that if you have unsubsidized or PLUS loans, you're still required to pay the interest that accrues during the deferment period, no matter how long deferment lasts.\nDeferring your student loan also means it will take longer to pay them off. Having student loan debt increases your debt-to-income ratio and may make it more difficult to get approved for other types of loans, such as a mortgage or car loan, in the future. If your student loans accrue interest during deferment that you have to pay, it could add significantly to the total amount you owe—especially if the interest is capitalized. END
 TITLE: How Do I Defer My Student Loans? CONTENT: Alternatives to Deferment and Forbearance\n-----------------------------------------\nStudent loan deferment and forbearance can be useful options when you have a temporary setback that makes it hard to make your payments, such as losing your job. Missing a student loan payment has consequences, including potential damage to your credit score, and deferment can help you avoid them. However, you're essentially \"kicking the can down the road,\" and will eventually have to make payments again—potentially larger ones if unpaid interest accrues during the deferment.\nDeferment can be a solution for temporary financial issues that make it difficult to pay your student loans. If you have federal student loans and your financial issues are longer-lasting—for example, you've entered a low-paying career field—an income-based repayment (IBR) plan may be a better alternative.\nIBR is one of four income-driven repayment plans the federal government offers for borrowers whose federal student loan payments are high relative to their incomes. An IBR plan permanently reduces your monthly payments, gives you 20 to 25 years to repay your loan, and may even forgive the loan if it's not paid off in that time.\nIncome-based repayment works like this: If you have federal student loans for undergraduate studies, PLUS loans for graduate education or consolidated federal loans that don't include a parent PLUS loan, complete the online application through the Department of Education or contact your loan servicer. Once you're approved, your new monthly payment will be calculated based on your income and family size.\nIf you qualify, you'll have either 20 or 25 years to pay off your student loan, and your monthly payment will be capped at either 10% or 15% of your discretionary income, which is the amount of your adjusted gross income that exceeds 150% of federal poverty guidelines, based on your state and the number of people in your family.\nTo maintain your eligibility for the IBR plan, you must \"recertify\" your income information each year; if your income changes, your loan payment amount may change too. However, your payment will never be higher than it would have been under a standard 10-year student loan repayment plan.\nThe downside of IBR is that you'll be in debt for much longer than you would have been under a 10-year student loan repayment plan. Carrying this debt can make it harder to qualify for other loans, and if you miss a payment, it can negatively affect your credit. The upside, though, is that if you still haven't paid off your loan after 20 or 25 years of making your payments on time, you'll be eligible for student loan forgiveness, which cancels out any remaining balance. END
 TITLE: How Do I Defer My Student Loans? CONTENT: Is Student Loan Deferment Right for You?\n----------------------------------------\nIf you're struggling to make your student loan payments because of short-term financial problems, student loan deferment can offer an opportunity to get your finances in order and help you maintain a good credit score. Depending on the type of loan you have and your situation, you may also want to consider student loan forbearance or income based repayment.\nBefore applying for a student loan deferment, make sure you know whether you'll be responsible for paying any interest that accrues during deferment and how deferment will affect your overall loan balance. Talking to your student loan servicer will help you understand the options available so you can make an educated decision. END
 TITLE: How to Make a Business Plan for a Loan CONTENT: What Are the Types of Business Plans?\n-------------------------------------\nThe kind of business plan you need to write when applying for a loan will vary depending on your business and your financing goals. Business plan types include:\n*   **Business plan for a startup business**: When you need a loan to get a new business off the ground, a well-written startup business plan can help persuade lenders you've got what it takes to succeed. Writing a business plan also helps you identify all the steps to startup, providing a useful road map to guide you in launching your business. Sharing your in-depth market research, touting your experienced management team, and offering strong financial and sales projections will help to convince lenders your startup will quickly turn a profit so that you can repay the loan.\n*   **Business plan for an existing business**: Are you already in business and looking for a loan or other financing to expand into new markets or products, purchase equipment or tap into working capital? Depending on where you're applying for a loan, you might need to write a business plan as part of your application. This type of plan shares hard data about your business's current success as well as forecasts for how the proposed loan will help you achieve continued growth and meet future financial goals.\n*   **Business plan for an acquisition**: You'll likely need financing to buy an existing business. A business plan for an acquisition should present the history, strengths and financials of the business and explain how you'll make the business even more successful. If you already own a business, your business plan should also discuss that company's market, management and finances, and explain how the acquisition will enhance your current operation.\nAlthough some lenders won't ask for a business plan, traditional lenders typically do. Think of writing a business plan as the price you pay to access the favorable business loan terms and lower interest rates available from banks and SBA-guaranteed lenders. Before extending credit, these lenders want to be confident that your business or business idea is sound and will generate the profits you need to pay them back.  \nYour business plan should convey what makes your business unique, how you operate, who your customers are, how you make money, who makes up your leadership team, and how the business fits into the competitive landscape. It should also provide details of your business's finances and financial projections. To cover all these topics, most business plans include the following sections:\n1.  Executive summary: This brief introduction summarizes the most important aspects of your business plan in an attention-getting format, inspiring lenders to read on for more details.\n2.  Company description: Here, you explain your product or service, your company's legal form of business (such as a corporation or partnership), business history and the competitive landscape.\n3.  Product or service description: This section provides details about what you sell. Explain what makes your product or service different and better than the competition, why people will buy it and how it's priced.\n4.  Market analysis\/marketing plan: Using your detailed market research, this part of the plan describes the potential market for your product or service; identifies key competitors; and explains how you will market, advertise and sell your wares.\n5.  Operations plan: Here, you'll describe the daily nuts and bolts of running your business, such as the kinds of employees you plan to hire, where you'll locate the business, how you'll buy or manufacture your products, and what equipment you plan to use.\n6.  Management plan: This section of your plan focuses on your company's management team, highlighting past experience that positions them to help your business succeed. If you don't have a full team in place yet, explain the roles you still need to fill and what skills and experience you'll require.\n7.  Financial plan: For a startup business, the financial plan will break down your anticipated startup costs in detail. It should also include financial projections that demonstrate when you expect to break even. Existing businesses will share current financial statements indicating sales, cash flow and profits and losses, as well as projections for the future. Both types of plans should show how the loan proceeds will be used to increase sales and profits.\nYou can buy business plan software that walks you through the process of writing a business plan. BPlans is one source of software, free templates and business plan advice. You can also get help writing a business plan from the SBA; their website can connect you with business advisors to guide you.  \nWhere to Get a Business Loan\n----------------------------\nWhere can you get a business loan? Here are some of the best places to look.\n*   **Your current bank or credit union**: It's always smart to start with the financial institution you already use for personal or business banking. If you have a business bank account, that bank has a record of your business's financials that can help them make decisions. Even if your bank can't lend you the full amount you need, they might be able to provide a smaller loan or a business line of credit to help.\n*   **Business-focused banks**: If you don't yet have a business bank, talk to other local entrepreneurs or search online to get recommendations for banks catering to small business owners.\n*   **SBA guaranteed lenders**: The Small Business Administration is not a lender itself; instead, it guarantees a percentage of small business loans made through approved banks and credit unions. The SBA guarantee reduces risk for the lender, which can make it easier for small business owners to get loans. The SBA's Lender Match program can match you with SBA guaranteed lenders in your area.\n*   **Microlenders**: Are you seeking a small amount of money ($50,000 or less) to start a business? Microlenders are typically nonprofit organizations that make small loans to new business owners. They often focus on underserved communities or individuals and may even provide consulting services to help improve your odds of success. Accion and Grameen America are two of the best-known national microlenders; the SBA also has its own microloan program.\n*   **Online lenders**: If you apply for a loan with an online or alternative lender, you probably won't be asked for a business plan. Most online lenders simply use your business bank statements or accounting records to assess your business's financial stability. Although these loans can be easier to get than loans from traditional sources, they often charge higher interest rates and have shorter loan terms, which can make them more challenging to repay.\nHow can you find the best business loan for you? Start by determining exactly how much money you need, what you need it for (some loans restrict what the money can be used for), and the loan payments you can afford. This will help you narrow the field to lenders that offer the amounts and terms you need.\nNext, shop around. There are lots of business lenders out there, and the more options you investigate, the more likely you are to find a good match. When assessing lenders, compare the loan amount, loan term, annual percentage rate (APR), fees, penalties and total cost of the loan. Last but not least, make sure the monthly payment is manageable—otherwise, you may have trouble paying off the loan.\nKeep in mind that you don't have to get all your financing from one place. Particularly when launching a business, it's common to get money from several sources, such as friends, family members, individual investors, loans and a business line of credit.\nHaving trouble finding a business loan with the terms you want? You might improve your odds by putting up some collateral, such as business equipment, receivables or inventory. (Pledging personal assets, such as your home, as collateral for a business loan can be risky; if you can't repay the loan, both your business and your personal finances could suffer.)  \nThe Importance of Credit When Applying for Business Loans\n---------------------------------------------------------\nPutting up collateral isn't the only way to lower the cost of a business loan. Having good personal and business credit scores can also help you qualify for better loan terms.\nIf you've been in business for a while, your business should have its own business credit score and business credit report, which lenders will review when considering your loan application. Similar to your personal credit history, your business credit history reflects how your business manages debt, and includes information such as on-time payments, collections and bankruptcies. The three major business credit bureaus—Experian, Dun & Bradstreet and Equifax—use data from your vendors, bankers, public records and other sources reported to your business credit history to generate a business credit score.\nIf your business doesn't have a credit history—for example, if it's a startup or relatively new—or if you're a sole proprietor, lenders will rely on your personal credit history and credit score when evaluating your loan application. Even if you have a business credit score, some lenders will want you to personally guarantee the loan, and they'll examine both your personal and your business credit before agreeing to fund you.\nBefore you apply for a business loan, ask the lender which credit scores they consider. Then check your personal credit report and credit score, as well as your business credit report and score, to see how you and your business measure up. Less-than-stellar credit scores won't necessarily rule out a business loan, but you may have to settle for higher interest rates, less favorable terms and less money than if your scores were higher.\nIf you don't need financing immediately, it's worth taking steps to boost your credit scores before you apply for a business loan. You can improve your personal credit score by bringing late accounts current, paying all bills on time, paying down credit card debt and not applying for new credit accounts in the months preceding your application.\nTo improve your business credit, check to make sure your business credit cards and any trade credit accounts with suppliers report to the business credit bureaus. Pay your business's bills on time and work to pay down high revolving credit balances.\nDon't have a business credit history? Establish business credit by setting up a corporation or Limited Liability Company (LLC), getting a federal Employer Identification Number (EIN), opening a business bank account and opening a credit card account in your company's name. Then pay your business's bills on time and make sure that suppliers and business credit card issuers report your payments to at least one major business credit bureau.  \nA Business Loan at Last\n-----------------------\nBusiness loans can benefit your company in many ways. In addition to the financial jumpstart a loan provides, repaying a business loan can help to build your business's credit history and establish a good business credit score.\nOnce you get your loan, confirm that the lender will report your account and payments to the major business credit bureaus. Then be sure to make your loan payments on time. You can monitor your business credit and watch how your loan affects your credit score by signing up for Business Credit Advantage, Experian's business credit monitoring service. As you put your loan proceeds to work, refer to the business plan you created to guide your way. END
 TITLE: How to Make a Business Plan for a Loan CONTENT: Your business plan should convey what makes your business unique, how you operate, who your customers are, how you make money, who makes up your leadership team, and how the business fits into the competitive landscape. It should also provide details of your business's finances and financial projections. To cover all these topics, most business plans include the following sections:\n1.  Executive summary: This brief introduction summarizes the most important aspects of your business plan in an attention-getting format, inspiring lenders to read on for more details.\n2.  Company description: Here, you explain your product or service, your company's legal form of business (such as a corporation or partnership), business history and the competitive landscape.\n3.  Product or service description: This section provides details about what you sell. Explain what makes your product or service different and better than the competition, why people will buy it and how it's priced.\n4.  Market analysis\/marketing plan: Using your detailed market research, this part of the plan describes the potential market for your product or service; identifies key competitors; and explains how you will market, advertise and sell your wares.\n5.  Operations plan: Here, you'll describe the daily nuts and bolts of running your business, such as the kinds of employees you plan to hire, where you'll locate the business, how you'll buy or manufacture your products, and what equipment you plan to use.\n6.  Management plan: This section of your plan focuses on your company's management team, highlighting past experience that positions them to help your business succeed. If you don't have a full team in place yet, explain the roles you still need to fill and what skills and experience you'll require.\n7.  Financial plan: For a startup business, the financial plan will break down your anticipated startup costs in detail. It should also include financial projections that demonstrate when you expect to break even. Existing businesses will share current financial statements indicating sales, cash flow and profits and losses, as well as projections for the future. Both types of plans should show how the loan proceeds will be used to increase sales and profits.\nYou can buy business plan software that walks you through the process of writing a business plan. BPlans is one source of software, free templates and business plan advice. You can also get help writing a business plan from the SBA; their website can connect you with business advisors to guide you.  \nWhere to Get a Business Loan\n----------------------------\nWhere can you get a business loan? Here are some of the best places to look.\n*   **Your current bank or credit union**: It's always smart to start with the financial institution you already use for personal or business banking. If you have a business bank account, that bank has a record of your business's financials that can help them make decisions. Even if your bank can't lend you the full amount you need, they might be able to provide a smaller loan or a business line of credit to help.\n*   **Business-focused banks**: If you don't yet have a business bank, talk to other local entrepreneurs or search online to get recommendations for banks catering to small business owners.\n*   **SBA guaranteed lenders**: The Small Business Administration is not a lender itself; instead, it guarantees a percentage of small business loans made through approved banks and credit unions. The SBA guarantee reduces risk for the lender, which can make it easier for small business owners to get loans. The SBA's Lender Match program can match you with SBA guaranteed lenders in your area.\n*   **Microlenders**: Are you seeking a small amount of money ($50,000 or less) to start a business? Microlenders are typically nonprofit organizations that make small loans to new business owners. They often focus on underserved communities or individuals and may even provide consulting services to help improve your odds of success. Accion and Grameen America are two of the best-known national microlenders; the SBA also has its own microloan program.\n*   **Online lenders**: If you apply for a loan with an online or alternative lender, you probably won't be asked for a business plan. Most online lenders simply use your business bank statements or accounting records to assess your business's financial stability. Although these loans can be easier to get than loans from traditional sources, they often charge higher interest rates and have shorter loan terms, which can make them more challenging to repay.\nHow can you find the best business loan for you? Start by determining exactly how much money you need, what you need it for (some loans restrict what the money can be used for), and the loan payments you can afford. This will help you narrow the field to lenders that offer the amounts and terms you need.\nNext, shop around. There are lots of business lenders out there, and the more options you investigate, the more likely you are to find a good match. When assessing lenders, compare the loan amount, loan term, annual percentage rate (APR), fees, penalties and total cost of the loan. Last but not least, make sure the monthly payment is manageable—otherwise, you may have trouble paying off the loan.\nKeep in mind that you don't have to get all your financing from one place. Particularly when launching a business, it's common to get money from several sources, such as friends, family members, individual investors, loans and a business line of credit.\nHaving trouble finding a business loan with the terms you want? You might improve your odds by putting up some collateral, such as business equipment, receivables or inventory. (Pledging personal assets, such as your home, as collateral for a business loan can be risky; if you can't repay the loan, both your business and your personal finances could suffer.)  \nThe Importance of Credit When Applying for Business Loans\n---------------------------------------------------------\nPutting up collateral isn't the only way to lower the cost of a business loan. Having good personal and business credit scores can also help you qualify for better loan terms.\nIf you've been in business for a while, your business should have its own business credit score and business credit report, which lenders will review when considering your loan application. Similar to your personal credit history, your business credit history reflects how your business manages debt, and includes information such as on-time payments, collections and bankruptcies. The three major business credit bureaus—Experian, Dun & Bradstreet and Equifax—use data from your vendors, bankers, public records and other sources reported to your business credit history to generate a business credit score.\nIf your business doesn't have a credit history—for example, if it's a startup or relatively new—or if you're a sole proprietor, lenders will rely on your personal credit history and credit score when evaluating your loan application. Even if you have a business credit score, some lenders will want you to personally guarantee the loan, and they'll examine both your personal and your business credit before agreeing to fund you.\nBefore you apply for a business loan, ask the lender which credit scores they consider. Then check your personal credit report and credit score, as well as your business credit report and score, to see how you and your business measure up. Less-than-stellar credit scores won't necessarily rule out a business loan, but you may have to settle for higher interest rates, less favorable terms and less money than if your scores were higher.\nIf you don't need financing immediately, it's worth taking steps to boost your credit scores before you apply for a business loan. You can improve your personal credit score by bringing late accounts current, paying all bills on time, paying down credit card debt and not applying for new credit accounts in the months preceding your application.\nTo improve your business credit, check to make sure your business credit cards and any trade credit accounts with suppliers report to the business credit bureaus. Pay your business's bills on time and work to pay down high revolving credit balances.\nDon't have a business credit history? Establish business credit by setting up a corporation or Limited Liability Company (LLC), getting a federal Employer Identification Number (EIN), opening a business bank account and opening a credit card account in your company's name. Then pay your business's bills on time and make sure that suppliers and business credit card issuers report your payments to at least one major business credit bureau.  \nA Business Loan at Last\n-----------------------\nBusiness loans can benefit your company in many ways. In addition to the financial jumpstart a loan provides, repaying a business loan can help to build your business's credit history and establish a good business credit score.\nOnce you get your loan, confirm that the lender will report your account and payments to the major business credit bureaus. Then be sure to make your loan payments on time. You can monitor your business credit and watch how your loan affects your credit score by signing up for Business Credit Advantage, Experian's business credit monitoring service. As you put your loan proceeds to work, refer to the business plan you created to guide your way. END
 TITLE: How to Make a Business Plan for a Loan CONTENT: Where to Get a Business Loan\n----------------------------\nWhere can you get a business loan? Here are some of the best places to look.\n*   **Your current bank or credit union**: It's always smart to start with the financial institution you already use for personal or business banking. If you have a business bank account, that bank has a record of your business's financials that can help them make decisions. Even if your bank can't lend you the full amount you need, they might be able to provide a smaller loan or a business line of credit to help.\n*   **Business-focused banks**: If you don't yet have a business bank, talk to other local entrepreneurs or search online to get recommendations for banks catering to small business owners.\n*   **SBA guaranteed lenders**: The Small Business Administration is not a lender itself; instead, it guarantees a percentage of small business loans made through approved banks and credit unions. The SBA guarantee reduces risk for the lender, which can make it easier for small business owners to get loans. The SBA's Lender Match program can match you with SBA guaranteed lenders in your area.\n*   **Microlenders**: Are you seeking a small amount of money ($50,000 or less) to start a business? Microlenders are typically nonprofit organizations that make small loans to new business owners. They often focus on underserved communities or individuals and may even provide consulting services to help improve your odds of success. Accion and Grameen America are two of the best-known national microlenders; the SBA also has its own microloan program.\n*   **Online lenders**: If you apply for a loan with an online or alternative lender, you probably won't be asked for a business plan. Most online lenders simply use your business bank statements or accounting records to assess your business's financial stability. Although these loans can be easier to get than loans from traditional sources, they often charge higher interest rates and have shorter loan terms, which can make them more challenging to repay.\nHow can you find the best business loan for you? Start by determining exactly how much money you need, what you need it for (some loans restrict what the money can be used for), and the loan payments you can afford. This will help you narrow the field to lenders that offer the amounts and terms you need.\nNext, shop around. There are lots of business lenders out there, and the more options you investigate, the more likely you are to find a good match. When assessing lenders, compare the loan amount, loan term, annual percentage rate (APR), fees, penalties and total cost of the loan. Last but not least, make sure the monthly payment is manageable—otherwise, you may have trouble paying off the loan.\nKeep in mind that you don't have to get all your financing from one place. Particularly when launching a business, it's common to get money from several sources, such as friends, family members, individual investors, loans and a business line of credit.\nHaving trouble finding a business loan with the terms you want? You might improve your odds by putting up some collateral, such as business equipment, receivables or inventory. (Pledging personal assets, such as your home, as collateral for a business loan can be risky; if you can't repay the loan, both your business and your personal finances could suffer.) END
 TITLE: How to Make a Business Plan for a Loan CONTENT: The Importance of Credit When Applying for Business Loans\n---------------------------------------------------------\nPutting up collateral isn't the only way to lower the cost of a business loan. Having good personal and business credit scores can also help you qualify for better loan terms.\nIf you've been in business for a while, your business should have its own business credit score and business credit report, which lenders will review when considering your loan application. Similar to your personal credit history, your business credit history reflects how your business manages debt, and includes information such as on-time payments, collections and bankruptcies. The three major business credit bureaus—Experian, Dun & Bradstreet and Equifax—use data from your vendors, bankers, public records and other sources reported to your business credit history to generate a business credit score.\nIf your business doesn't have a credit history—for example, if it's a startup or relatively new—or if you're a sole proprietor, lenders will rely on your personal credit history and credit score when evaluating your loan application. Even if you have a business credit score, some lenders will want you to personally guarantee the loan, and they'll examine both your personal and your business credit before agreeing to fund you.\nBefore you apply for a business loan, ask the lender which credit scores they consider. Then check your personal credit report and credit score, as well as your business credit report and score, to see how you and your business measure up. Less-than-stellar credit scores won't necessarily rule out a business loan, but you may have to settle for higher interest rates, less favorable terms and less money than if your scores were higher.\nIf you don't need financing immediately, it's worth taking steps to boost your credit scores before you apply for a business loan. You can improve your personal credit score by bringing late accounts current, paying all bills on time, paying down credit card debt and not applying for new credit accounts in the months preceding your application.\nTo improve your business credit, check to make sure your business credit cards and any trade credit accounts with suppliers report to the business credit bureaus. Pay your business's bills on time and work to pay down high revolving credit balances.\nDon't have a business credit history? Establish business credit by setting up a corporation or Limited Liability Company (LLC), getting a federal Employer Identification Number (EIN), opening a business bank account and opening a credit card account in your company's name. Then pay your business's bills on time and make sure that suppliers and business credit card issuers report your payments to at least one major business credit bureau. END
 TITLE: How to Make a Business Plan for a Loan CONTENT: A Business Loan at Last\n-----------------------\nBusiness loans can benefit your company in many ways. In addition to the financial jumpstart a loan provides, repaying a business loan can help to build your business's credit history and establish a good business credit score.\nOnce you get your loan, confirm that the lender will report your account and payments to the major business credit bureaus. Then be sure to make your loan payments on time. You can monitor your business credit and watch how your loan affects your credit score by signing up for Business Credit Advantage, Experian's business credit monitoring service. As you put your loan proceeds to work, refer to the business plan you created to guide your way. END
 TITLE: What Is a Business Plan? CONTENT: How Does a Business Plan Work?\n------------------------------\nAlthough all business plans share certain similarities, there are different variations depending on the goals you're trying to achieve.\n*   **Startup business plan**: Write this type of plan before launching a new business. For your company to have a better chance of success, you'll need to think through all the steps involved, figure out how much money you need to open your business, and assess whether your business idea will actually fly. A startup business plan can help.\n*   **Business plan for financing**: Both startup and existing businesses may want (or need) to write a business plan if they're seeking a loan or other financing. In general, traditional sources of financing, such as banks, angel investors and venture capitalists, will require a business plan before they consider financing your business. Non-traditional sources, such as peer-to-peer lenders or online lenders, may not.\n*   **Business expansion plan**: If your business is planning to expand into new geographic or demographic markets, launch a new product or service, or undertake a major expansion, creating a business plan can help you plot your course before you invest your time and money.\n*   **Business pivot**: Sometimes you need to make drastic changes to your business model, such as taking your retail store online-only. When it's time to pivot in a completely different direction, drafting a new business plan can start you off on the right foot.\n*   **Business acquisition plan**: Used when you're considering buying another business, a business acquisition plan digs into the details of that business to assess its viability. It also plans how you'll incorporate the acquisition into your existing business strategy and operations and how the acquisition will benefit you. END
 TITLE: What Is a Business Plan? CONTENT: What Is The Purpose of a Business Plan?\n---------------------------------------\nWhen you're eager to start your new business or launch a new product line, you may be tempted to skip the business plan stage altogether. In reality, taking the time to write a business plan delivers several benefits.\n*   **It helps validate your business idea.** The research you'll do to write your business plan will show whether your business is viable or not. By calculating projected sales, revenues, cash flow and net income, you'll know what kind of financial return you can expect and when. If your research shows your idea isn't quite ready for prime time, you can regroup and revise until you find a way to make your concept work.\n*   **It documents a company's strategic plan and goals.** Business plans aren't just for getting loans; they're also useful guides to keep your business on the right track. Referring to your business plan regularly as a road map will help you make sure your business is moving in the right direction on the timeline you set.\n*   **It helps you calculate the necessary startup capital.** Whether you're funding the business yourself or seeking a loan, it's crucial to know how much money you need. Otherwise, you might ask for a loan that's too small, or run out of money before your business breaks even.\n*   **You may need it to get approved for business loans or investment capital.** Lenders and investors want evidence that your business startup or expansion plans are likely to succeed. Your business plan helps convince them your business is worth backing. In particular, the financial section of the plan helps demonstrate that you'll make enough money to repay the loan or generate a good return for investors.\nA business plan is different from an _investment proposal_. An investment proposal is a presentation or document you show potential investors to persuade them to invest in your business. It includes some of the same information the business plan contains, but it's designed to convince investors your business is a lucrative opportunity, so it emphasizes your competitive advantages, the size and potential of the market and expected return on investment (ROI). Think of the investment proposal as the \"sizzle\" to get the investors excited, and the business plan as the meaty steak. END
 TITLE: What Is a Business Plan? CONTENT: What Is Included in a Business Plan?\n------------------------------------\nA business plan typically includes the following sections.\n1.  Executive summary: Designed to get attention from a lender or investor, this brief introductory section concisely sums up key points from the rest of the business plan. Explaining what your business does and what makes it different from the competition, it should pique the reader's attention and make them want to learn more.\n2.  Company description: This section explains what your company does and includes your company's mission statement, vision and goals. It also explains the legal structure of your business (corporation, sole proprietorship or other structure), the history of the business, and who your competition is.\n3.  Product or service description: Here, you explain what you'll be selling, including pricing, the problems it solves for your target market and why it's superior to the competition.\n4.  Market analysis\/marketing plan: This section reviews the potential market for your product or service based on market research into your target customers and your competitors. You'll also explain your product or service in more detail, as well as your plans for marketing, distributing and selling it.\n5.  Operations plan: How will you set up and run your business? Explain your plans for choosing a location, the kinds of employees you'll need and what equipment you'll require. This section should give readers a clear idea of how your business will operate day-to-day.\n6.  Management plan: Essentially, this section fleshes out your organizational chart. Which key roles do you need to fill and what will each position be responsible for? If you already have key people in place, share details on their background and experience to show why they'll help your business succeed.\n7.  Financial plan: Depending on your stage in business, this may include a section for startup costs that details how much money you need and how it will be spent. You'll also include financial projections for sales, cash flow and profits and losses, and estimate when your business will start to break even. If you're seeking financing, specify how much money you need and exactly what you'll use it for, and include sales and financial projections showing how the money will help your business grow.\nThe U.S. Small Business Administration (SBA) provides detailed guidance on writing a business plan, including sample business plans and a link to business counselors who can help you with the process.  \nUsing a Business Plan to Get a Loan\n-----------------------------------\nWill you be using your business plan to apply for a loan? In addition to polishing your business plan, take some time to buff up your credit scores. Lenders may consider your personal credit score when evaluating your loan application, particularly if you're a startup. How well you manage money in your personal life is generally a good indicator of how you'll manage a business loan.\nYou can check your personal credit report and credit score for free. If your score needs some improvement, bring your accounts current, pay down debt and take other steps to increase your credit score before you apply for a business loan. If your business is established, it most likely has a business credit score; check that, too, and take steps to boost that score if necessary.\nJust starting out in business? It's never too soon to begin establishing business credit by incorporating or forming an LLC, getting a federal Employer Identification Number (EIN), and opening bank accounts in the name of your business. Building a good business credit score can help you get credit in the future—and finance even bigger business dreams. END
 TITLE: What Is a Business Plan? CONTENT: Using a Business Plan to Get a Loan\n-----------------------------------\nWill you be using your business plan to apply for a loan? In addition to polishing your business plan, take some time to buff up your credit scores. Lenders may consider your personal credit score when evaluating your loan application, particularly if you're a startup. How well you manage money in your personal life is generally a good indicator of how you'll manage a business loan.\nYou can check your personal credit report and credit score for free. If your score needs some improvement, bring your accounts current, pay down debt and take other steps to increase your credit score before you apply for a business loan. If your business is established, it most likely has a business credit score; check that, too, and take steps to boost that score if necessary.\nJust starting out in business? It's never too soon to begin establishing business credit by incorporating or forming an LLC, getting a federal Employer Identification Number (EIN), and opening bank accounts in the name of your business. Building a good business credit score can help you get credit in the future—and finance even bigger business dreams. END
 TITLE: Should You Buy a Rental Car? CONTENT: Benefits of Buying a Rental Car\n-------------------------------\nBuying a rental car can have several benefits for car-buyers seeking a bargain.\n*   **Most models are fairly new.** Since many rental car companies remove cars from rotation after just one year, you can get a nearly new vehicle for much less than you'd pay for this year's model from a dealership.\n*   **You may get a deal.** Rental companies buy their cars in bulk, so they get a discount, and are motivated to sell to clear space on their lots. As a result, rental cars may sell at discounts of 10% or more compared with a privately owned car of the same model. (Check the Kelley Blue Book price of the car to be sure.)\n*   **Vehicles are generally well-maintained.** Major car rental agencies take good care to keep their rentals operating smoothly. Vehicles are typically serviced according to manufacturers' recommended schedules using certified technicians.\nThere are also a few downsides to buying a rental car.\n*   **Wear and tear**: Rental cars often have more mileage than the same models would if privately owned. Rentals may be more likely to have scratches, dents, stained upholstery and other cosmetic damage. They may also have been driven harder than a typical used car. However, according to Experian Automotive data, a vehicle having history as a rental has virtually no impact on its longevity.\n*   **Warranty issues**: Depending on its mileage, a rental car may already be out of factory warranty. Some rental car companies compensate for this by including limited warranties, roadside assistance, rental car coverage and other perks with their cars. You can also look for a model from a manufacturer that offers a longer warranty than the standard 36,000 miles, such as Hyundai, Kia and Mitsubishi.\n*   **Just the basics**: Looking for extras like flashy rims, heated seats or a moonroof? You may not find it on a rental car; they tend to be base models without a lot of bells and whistles. END
 TITLE: Should You Buy a Rental Car? CONTENT: The Importance of Checking Vehicle History\n------------------------------------------\nLet's face it: People are more careless with rental cars than they are with their own vehicles. How will you know if that sedan you're eyeing was used for an off-roading weekend or got caught in a flood? Checking the vehicle history report can help you uncover past accidents, frame damage, water damage and other issues that could affect the life and reliability of the car.\nIf the rental car company doesn't provide a vehicle history report, you can get one yourself. All you need is the vehicle identification number (VIN) or U.S. license plate to find out the vehicle's AutoCheck® Score. This service from Experian analyzes all the records in an AutoCheck vehicle history report to calculate this score, which estimates a vehicle's overall roadworthiness, its reliability compared with other vehicles in its class, and its likelihood of being on the road in five years.\nIn addition to checking the vehicle history report, ask to see the maintenance record. Finally, have the vehicle inspected by a trusted mechanic. Many rental car companies let you rent the car for a few days before you buy, giving you plenty of time to drive it around and get it checked out. END
 TITLE: Should You Buy a Rental Car? CONTENT: How to Get a Used Car Loan\n--------------------------\nBefore you apply for a used car loan, assess your budget, the amount you have saved (or can save) for a down payment, and the vehicle you want to see how much money you'll need to borrow. You can get a general idea of rental car prices by searching inventory on their websites.\nRental car companies may offer their own financing. However, you'll have the upper hand in negotiations if you're already preapproved for a third-party loan before you start shopping for a car. Compare auto loans available from banks, online lenders and credit unions (if you belong to one).\nTo get preapproved for a loan, you'll fill out a preliminary application with some basic information. If you're preapproved, you'll receive an offer of credit specifying the amount and loan terms. Applying for preapproval doesn't affect your credit score because it causes a soft inquiry on your credit report, not a hard inquiry the way an actual loan application does. END
 TITLE: Should You Buy a Rental Car? CONTENT: How to Get Your Credit Ready to Buy a Car\n-----------------------------------------\nDifferent lenders may use different credit scoring models and have different standards, so there's no set credit score you need to get an auto loan. However, if your score is fair or poor, you'll likely pay a higher interest rate or may even need a co-signer on the loan. That's why it's a good idea to get your credit score in shape before you start shopping.\nAccording to Experian's State of the Automotive Finance Market report for the second quarter of 2020, used car buyers with credit scores considered \"subprime\" took out loans with interest rates more than double what borrowers with prime credit scores could secure, on average. The average interest rate on a used car loan for borrowers with credit scores in the range of 501 to 600 was 17.78%, according to the report, whereas those with scores in the 661 to 780 range had an average used car loan rate of 6.05%.\nThree to six months before you plan to apply for a used car loan, consider checking your credit report and credit score. This will give you time to work on improving your credit score if necessary. Bringing any late payments current, paying your bills on time, paying down credit card debt, and not applying for new credit are simple ways to help improve your credit score. Experian Boost™† , a free service that reports your on-time cellphone and utility payments and other bills to credit bureaus, can also boost your credit score quickly. END
 TITLE: Should You Buy a Rental Car? CONTENT: Driving a Hard Bargain\n----------------------\nBuying a rental car is typically a very straightforward process in which most of the transaction can be handled online. In most cases, there's not a lot of room to negotiate on price, which makes your loan terms even more important. Having a good credit score can lower the total cost of your rental car purchase by qualifying you for desirable financing offers. Improving your credit score before you start searching for a rental car to buy will put you in the driver's seat when it comes to getting an auto loan. END
 TITLE: How Does Buying a Car Affect Your Credit? CONTENT: Ways Buying a Car Can Impact Your Credit\n----------------------------------------\nWhether buying a car negatively or positively impacts your credit will depend on how reliably you make your loan payments. When you first get an auto loan, you may see a slight dip in your credit scores because you're taking on a hefty new debt. However, as you begin making on-time payments on the loan, your credit score should bounce back.\nBuying a car can help your credit if:\n*   **You make all of your payments on time.** Because payment history is the biggest factor in your credit score, making payments on time and in full should improve your credit score over time.\n*   **It improves your credit mix.** Lenders like to see a mix of revolving credit (such as credit cards) and installment credit (such as auto loans) in your credit history. Successfully managing a wide variety of credit accounts helps prove that you're creditworthy. If you currently have only revolving credit accounts, credit cards for instance, adding installment credit in the form of an auto loan could help boost your credit score.\nHowever, buying a car could end up hurting your credit if:\n*   **You miss one or more payments.** As soon as you miss a payment due date, your car loan is considered delinquent. You'll usually have a short grace period during which you can make up the payment. If a full billing cycle passes and you still haven't paid, the lender will report your delinquency to the major credit bureaus, which is likely to hurt your credit scores.\n*   **You default on the loan.** Some auto lenders will declare your loan in default 30 days after your payment is due; others will wait 90 days. Once your loan is in default, your account will be turned over to debt collectors, who will contact you to seek payment. If you still don't pay, your car could be repossessed. Late payments, default, having your account go to collections and repossession each leave a separate, negative mark on your credit report, and each stays on your credit history for up to seven years.\n*   **You can't afford the loan.** If you're struggling to make your car payments, you might fall behind on other bills, leading to late payments that could negatively affect your credit score. Before you buy a car, review your budget to be sure you can manage the monthly payments and other costs of car ownership. END
 TITLE: How Does Buying a Car Affect Your Credit? CONTENT: How to Get Your Credit Ready to Buy a Car\n-----------------------------------------\nWhether you're in the market for a new or used car, chances are you'll need a car loan. To get the best possible loan terms, make sure your credit is in good shape before heading to the dealership to purchase a car.\nStart by getting a copy of your credit report and reviewing closely. Next, check your credit score to see where you stand. If you have a good credit score (many lenders consider this to be a FICO® Score of 700 or higher), you're more likely to qualify for desirable loan terms. If your score is in the exceptional range (800 or higher), you might even qualify for sweet deals such as 0% APR financing.\nLower credit scores generally translate into higher interest rates on your auto loan; over the course of the loan, this can really add up. If your credit isn't where it should be, improving your credit score before you go car shopping could save you thousands of dollars in interest costs. END
 TITLE: How Does Buying a Car Affect Your Credit? CONTENT: Additional Ways to Build a Positive Credit History\n--------------------------------------------------\nGetting an auto loan and making your payments on time is one of the best ways to build up a positive credit history, but it's not ideal to start financing a car when you have low credit scores. If you have poor or fair credit, you can help boost your score by bringing any late accounts current, making all your payments on time and paying down debt.\nIf you're new to credit, you can build a credit history by applying for credit cards, using them for small purchases each month, and paying your bill on time and in full. If you can't qualify for a regular credit card, consider applying for a secured credit card, or see if a family member with good credit will add you to their account as an authorized user. Another option to consider is a credit-builder loan.\nIf you're a renter, you can ask your landlord to report your rent payments to credit bureaus. Most landlords don't normally do this, but if yours is willing to start, adding the information to your credit report can help build your credit. END
 TITLE: How Does Buying a Car Affect Your Credit? CONTENT: Keep an Eye on Your Credit Score\n--------------------------------\nOnce you've purchased your car, be diligent about making your loan payments on time. Put your payment due date on your calendar or set up automatic payments (just make sure you have enough money in your bank account to cover them).\nTo see how your auto loan affects your credit score, consider signing up for free credit monitoring from Experian. You'll get monthly credit reports, notifications of activity on your credit report and alerts whenever your credit score changes. It's a great way to stay in the driver's seat when it comes to your credit. END
 TITLE: What Is an Insurance Claim? CONTENT: How Do Insurance Claims Work?\n-----------------------------\nTo receive payment from your insurance company for a covered event, you'll have to file a claim. This generally involves completing a form documenting the covered event and requesting payment, and then submitting the form to the insurance company. The insurance company will either approve and pay the claim or deny the claim.\nIf your claim is approved, you may have to pay a deductible, which is the amount you're responsible for paying before insurance kicks in. Auto, homeowners and some health insurance policies have a deductible, and how they work can differ depending on the type of insurance. If you file an auto insurance claim for $3,000 worth of damages and your deductible is $500, the insurance will pay out $2,500 ($3,000 minus the deductible).\nThe deductible for a homeowners policy may be a dollar amount (as with auto insurance) or a percentage of the insured value of your home. If your home is insured for $300,000 and you have a 1% deductible, your deductible would be $3,000. Homeowners coverage for natural disasters such as earthquakes, floods and hurricanes may have deductibles up to 20%.\nIn some cases, you have to pay the deductible to whoever is repairing your car or home. In others, your insurance company simply subtracts your deductible from the amount they pay out for your claim.\nSome health insurance plans also have deductibles. If your plan has a deductible, you'll have to pay all costs for covered health care or medications until you hit the annual deductible amount, at which point insurance starts to pay out. However, many policies cover certain services, such as preventive or prenatal care, before you meet your deductible—although you may still have a copay for those services.\nFor example, if you have a $6,500 annual deductible, you'd have to pay for the first $6,500 worth of health care and medications each year. But if your plan covers preventive care before your deductible is met, you can go for an annual physical and pay only your copay, rather than the full cost of the visit. END
 TITLE: What Is an Insurance Claim? CONTENT: Types of Insurance Claims\n-------------------------\nThere are several types of situations in which you'd make an insurance claim, depending on your specific policy and what it covers.\n*   **Auto insurance**: You'll typically file an auto insurance claim if you're involved in a car accident with another driver, your car is stolen, your car is damaged by a collision or natural disaster, or if you injure another person or damage their property with your car.\n*   **Homeowners insurance**: You might make a homeowners insurance claim if your home is damaged by a fire, windstorm, lightning or hail; if your home is burglarized or vandalized; or if someone is injured on your property (such as a guest who slips and falls in your kitchen). Homeowners insurance typically doesn't cover floods, earthquakes, landslides, sinkholes or sewer backups, but you can get separate coverage to protect against these risks.\n*   **Health insurance**: You'll make a health insurance claim (or your provider will, on your behalf) whenever you receive health care or fill a prescription that is covered by your insurance policy.\n*   **Life insurance**: When a person who has life insurance dies, the beneficiary of the policy files a claim with the insurance company to receive the proceeds of the policy. END
 TITLE: What Is an Insurance Claim? CONTENT: How to File an Insurance Claim\n------------------------------\nThe process for filing an insurance claim varies depending on the type of claim. Here's how to file the most common types of insurance claims. END
 TITLE: What Is an Insurance Claim? CONTENT: How Will My Insurance Claim Be Paid?\n------------------------------------\nOnce you've paid or met any applicable deductible, how will your insurance claim be paid? That depends on a variety of factors, including the type of claim, your policy, your insurance company, state laws and whether you have a mortgage or auto loan. In general, however, here's what you can expect. END
 TITLE: What Is an Insurance Claim? CONTENT: How Can Making a Claim Affect Your Policies and Premiums?\n---------------------------------------------------------\nFiling a claim may or may not affect your policy premiums depending on your insurance company, the type of insurance and the specifics of the claim. For example, some home and auto insurers give you a discount if you go a certain number of years without filing a claim; file a claim, and you'll lose that discount.\nWhether an auto insurance claim causes an increase in premiums depends on a variety of factors, such as whether the claim is over a specific dollar amount, whether the incident is determined to be your fault, your overall driving record and your previous claims history.\nIn the case of homeowners insurance, insurance losses associated with the home in the past five years—even if you didn't own the home at the time—can indicate a higher likelihood of future claims. If your home's previous owner filed a hurricane damage claim two years ago, for instance, and you file a claim this year, it may suggest the home is at high risk from hurricanes. Multiple burglary claims may indicate that you're in a high-crime area or aren't taking proper precautions to protect your home. Either situation could lead to a rate increase.\nHealth insurance premiums work very differently. The Affordable Care Act prohibits insurers from raising an individual's rates based on his or her health. Any rate increases must be based on the overall \"risk pool\" the individual belongs to.\nEvery year, health insurance companies assess how much care for different risk pools cost that year, estimate how much those costs will change in the coming year, and base premiums on those calculations. If your insurance company estimates that costs for women aged 30 to 35 will go up next year, for example, and you're a 33-year-old woman, your rates will go up whether you filed one claim or 100. END
 TITLE: What Is an Insurance Claim? CONTENT: Do Insurance Claims Affect Your Credit Score?\n---------------------------------------------\nFiling any type of insurance claim will not directly impact your credit score. However, if the claim has negative financial consequences, it could indirectly lead to knocks on your credit. For example, having to pay a high deductible or higher insurance premiums could make it difficult to manage your other bills. You might start missing payments, which can have a significant negative impact on your credit score.\nOpting for a higher deductible is one way to lower your insurance premiums, but you should always be sure you could easily pay the deductible if you had to. If you're concerned that financial difficulties due to insurance claims may have affected your credit, check your credit report and score to see where you stand. END
 TITLE: Investing 101: How to Start Investing CONTENT: Invest in Your Retirement\n-------------------------\n*   Even if you can't invest very much, you should start investing in a retirement account as soon as you have a steady income. Financial experts generally suggest putting at least 10% to 15% of your pretax income into your retirement account. If you started putting $20 a month into a retirement account at age 25 and earned 10% interest a year on average, by age 65 you'd have $107,127.40. Wait until you're 35, though, and at 65 you'd only have $39,827.55.\n*   Contribute to your employer-sponsored retirement plan. Many employers offer a 401(k) or 403(b) plan, which allows you to invest part of your pretax income for retirement. If your employer matches your contribution, put in at least enough to get the full matching amount.\n*   If you don't have access to a company-sponsored retirement plan, consider setting up an individual retirement account (IRA) through a bank, credit union, investment firm or mutual fund company.\n    *   A **traditional IRA** lets you contribute pretax or after-tax dollars. Contributions grow tax-deferred; withdrawals are taxed after age 59½.\n    *   A **Roth IRA** lets you contribute after-tax dollars. The money grows tax-free; you usually can withdraw money after age 59½ with no taxes or penalties. END
 TITLE: Investing 101: How to Start Investing CONTENT: Invest on Your Own\n------------------\nOnce you've built an emergency savings account, have a retirement fund well underway, and have little to no credit card debt, you may want to explore stocks, bonds and other investments on your own. (Short-term investing options usually include high-yield savings accounts, certificates of deposit and money market funds; the investments below are part of a long-term strategy.)\nThere are several different ways you can invest.\n*   **Robo-advisor**: These are automated advisors that use algorithms based on your financial goals and risk preferences to recommend and manage your investments.\n    *   Robo-advisors typically charge less than human financial advisors, but don't provide in-person financial planning services.\n    *   They can be a good option for beginner investors who don't want to manage their own investments and want to minimize fees.\n*   **Online brokerage**: You can set up an account with an online brokerage such as TD Ameritrade, Fidelity Investments or E-Trade to buy, sell and manage your own investments.\n    *   You'll need the time and expertise to research your investment decisions and monitor your investments.\n*   **Financial advisor**: Human financial advisors provide in-depth financial planning that includes recommending and managing investments. They often require a certain minimum initial investment amount.\n    *   Financial advisors may charge an hourly fee, a flat rate, or a percentage of the investment amount they manage for you.\n    *   Before working with a financial advisor, make sure they and their firm are registered with the SEC and licensed to do business in your state. Visit the North American Securities Administrators Association website to check for any complaints. END
 TITLE: Investing 101: How to Start Investing CONTENT: Select Your Investments\n-----------------------\nWhether you are investing via a retirement account or on your own, there are several types of investments to choose from.\n*   **Mutual funds**: A mutual fund is a portfolio of professionally managed investments that may include stocks, bonds and other securities. They offer a way to diversify your investments by owning small shares in a wide range of assets.\n    *   Mutual funds may vary by industry (such as all tech stocks), geography (such as all U.S. stocks), type of security (such as stocks or bonds) and risk level (such as stocks in start-up companies vs. stocks in big-name companies).\n    *   An **index fund** is a type of mutual fund that's tied to a market index, such as the Dow Jones Industrial Average or the S&P 500.\n*   **Exchange-traded funds (ETFs)**: Like an index mutual fund, an ETF is a portfolio of investments typically based around a market index. But they have some significant differences.\n    *   Like an individual stock, an ETF can be traded at any time, and its value fluctuates throughout the day. A mutual fund can be traded only at the end of the trading day, when its price is set.\n    *   Mutual funds are professionally managed; most ETFs are \"passively managed,\" meaning trades are made only to keep the fund in line with its index.\n    *   Compared with mutual funds, ETFs offer more flexibility; you can choose to trade them at any time. However, trading fees may negate the lower administrative costs of an ETF.\n*   **Individual stocks**: Each share of stock represents a percentage of ownership in a publicly traded company. Stock prices rise and fall based on the company's financial performance and market factors.\n    *   The goal is to buy stocks at a low price and sell them for a high price.\n    *   Buying individual stocks can be pricey; as of this writing, one share of Amazon stock cost over $3,000.\n*   **Bonds**: Bonds are loans to governments, corporations, municipalities or other entities that pay interest in return.\n    *   Bonds are typically purchased to balance out riskier investments in your portfolio or provide income for those nearing or in retirement.\n    *   A bond ETF or bond mutual fund can provide an affordable way to invest in diversified bonds.\n*   **REITs**: A real estate investment trust (REIT) is a company that owns and manages income-producing real estate, such as apartments, hotels or commercial office buildings.\n    *   Shares in publicly traded REITs are sold on stock exchanges and can be purchased through brokerages.\n    *   Investing in REIT mutual funds or REIT ETFs may provide greater diversification than investing in an individual REIT. END
 TITLE: Investing 101: How to Start Investing CONTENT: Decide How to Invest\n--------------------\nDon't just jump into investing willy-nilly. Consider the following:\n*   **Your goals**: Are you investing for a long-term goal, like retirement, or a short-term goal, like a down payment on a home?\n*   **Your age**: Young people have more time to recoup losses if they are investing long-term, so they can take more risks. Closer to retirement, shifting to more conservative investments helps protect your nest egg.\n*   **Your risk tolerance**: Some people are inherently cautious, while others like to take risks. Just make sure your income and finances can support your tolerance for risk.\n*   **Diversification**: Purchasing a variety of investments can provide some level of balance, because if one loses value, the others may cushion the blow.\n*   **Your budget**: How much do you have to invest? Again, this should take into account savings needed for your emergency fund, credit card bills and other expenses that make up part of your monthly budget.\n*   **Dollar cost averaging**: Investing a set amount of money at regular intervals can reduce the risk of investing all your money at a bad time (such as right before a stock market crash). END
 TITLE: Investing 101: How to Start Investing CONTENT: Don't Set It and Forget It\n--------------------------\nWhether you take the DIY approach or use a financial professional, don't just invest your money and forget about it.\n*   Read all communications regarding your investments.\n*   Review all trade confirmations to make sure they are accurate.\n*   At least once a year, review your investments to make sure they still fit your overall financial strategy, and reallocate funds as necessary. END
 TITLE: Step-by-Step Checklist for Buying a New Car CONTENT: Decide How Much Car You Can Afford\n----------------------------------\n*   Evaluate your budget to see how much money you can reasonably spend on a car.\n    *   A good rule of thumb is to keep your car payment under 10% of your monthly take-home pay.\n    *   In addition to the monthly payment, be sure to consider the true costs of car ownership, including insurance, fuel and maintenance.\n*   Estimate how big of a down payment you can make.\n    *   Aim to put 20% down if possible. Cars lose value every year; a larger down payment can help ensure you won't end up owing more than the car is worth.\n    *   If you don't have enough money for a down payment, figure out how to save up for it.\n*   If you have a car, decide whether you want to sell it and put the money toward your down payment.\n    *   You can trade the car in to the dealership or sell it privately.\n    *   Trading it in is easier, but you can often get more money by selling a car privately.\n*   Use online payment calculators at automotive websites such as Edmunds, Autotrader and Cars.com to estimate how different prices, loan terms and down payment amounts will affect your monthly car payments. END
 TITLE: Step-by-Step Checklist for Buying a New Car CONTENT: Get Your Credit Ready to Buy a Car\n----------------------------------\nA good credit score can help you qualify for the best auto loan terms and lowest interest rates. Experian's latest auto market report found auto loan borrowers in the lowest credit score range paid an average 14.85% interest on a new car loan; those in the highest range paid an average interest rate of 4.19%.\n*   Check your credit report and contact the credit bureau if you find any inaccuracies.\n*   Check your credit score to see how your credit measures up.\n*   If necessary, take time to improve your credit score before shopping for a car.\n    *   Bring any past-due accounts current.\n    *   Pay all your bills on time.\n    *   Pay down balances on credit card accounts to improve your credit utilization ratio.\n    *   Sign up for Experian Boost™† to get credit for paying your utility, cellphone and streaming bills on time. END
 TITLE: Step-by-Step Checklist for Buying a New Car CONTENT: Shop for the Vehicle Make and Model You Want\n--------------------------------------------\n*   Use dealer and other automotive websites to research prices of the cars you're interested in.\n*   If the car you want costs more than you can afford, consider a used model of the same vehicle.\n    *   Cars under five years old have many of the same features as new ones, but cost significantly less.\n    *   You can buy certified pre-owned models from auto dealerships or used cars from private parties. END
 TITLE: Step-by-Step Checklist for Buying a New Car CONTENT: Get Preapproved for an Auto Loan\n--------------------------------\nYou can get a car loan through the dealership, but that's not your only option for financing a new car. Getting preapproved for a loan through a third-party lender can mean a lower interest rate and could give you more negotiating power with the dealer.\n*   Shop around for auto loans from banks, credit unions and online lenders. You'll be asked to provide basic information such as your Social Security number, employment details, financial information and how much you want to borrow. Estimate a general amount based on the cost of the car you want.\n*   When comparing loans, consider:\n    *   _Annual percentage rate (APR)_: The APR includes the loan interest rate and fees, reflecting the total cost of borrowing.\n    *   _Loan term_: Short-term loans often have lower interest rates and cost less in interest overall. Longer-term loans may have lower monthly payments but will cost more in interest over time.\n*   Use the Consumer Finance Protection Bureau's Shopping Sheet to compare auto loans.\n*   When you apply for multiple car loans, do it within a 14-day period to minimize any impact on your credit score from hard inquiries into your credit report. END
 TITLE: Step-by-Step Checklist for Buying a New Car CONTENT: Ask About Dealer Financing\n--------------------------\nEven if you're preapproved for an auto loan from a third party, you should investigate financing options from the dealer. Dealers may offer incentives, rebates or promotional financing.\n*   Bring proof of your loan preapproval to the dealership and ask if the dealer can beat the interest rate.\n*   Dealers often focus on the monthly payment, which makes it hard to compare loan offers. Ask them to explain the loan in terms of its total cost.\n*   The dealer may urge you to get a loan with a longer repayment term to lower your payments. Focus on the total cost of the loan or you could end up paying more than you wanted. END
 TITLE: Step-by-Step Checklist for Buying a New Car CONTENT: Negotiate the Price\n-------------------\n*   Research auto dealerships in your area to see how much the car you want is selling for.\n    *   Use the lowest price you find to negotiate with your chosen dealer, or\n    *   Take the average price, reduce it by 10% to 20%, and offer that price.\n*   Dealers will try to sell you extras, such as an extended warranty, gap insurance, rust-proofing or window etching. Don't give in to pressure to buy anything you don't actually want.\n    *   All these extras can be purchased later on, either from the dealer or third parties, usually for less.\n    *   If you buy extras from the dealer, they get rolled into your financing and incur interest, increasing both the price of the extras and the total cost of the car.\n*   If you're nervous about negotiating in person, shop for a car online so you can iron out the details remotely.\n*   Consider waiting until the end of the month, quarter or year, when salespeople are more willing to negotiate so they can meet sales quotas or move old cars off the lot.\n*   Be prepared to walk away if you aren't satisfied with the deal. There's always another car and another dealership. END
 TITLE: Step-by-Step Checklist for Buying a New Car CONTENT: Close the Deal\n--------------\n*   Review the loan and the dealer's purchasing paperwork carefully to make sure it matches what you agreed to.\n    *   Ask questions about anything you don't understand.\n    *   Don't sign any documents until they are completely filled out and accurate.\n*   If you're financing your car with a preapproved third-party loan, contact the lender and give them the relevant information about the car you're buying.\n*   Be ready to show proof of auto insurance in order to drive your new car off the lot.\n    *   If you don't have car insurance, start shopping for it at the same time you shop for a car.\n*   Put your loan payment due date on your calendar so you don't miss a payment.\n    *   Consider setting up automatic payments.\n    *   If you make your payments on time, your auto loan can help improve your credit score. END
 TITLE: Are Unsecured Loans a Good Idea? CONTENT: What Is an Unsecured Personal Loan?\n-----------------------------------\nYou can get unsecured personal loans from banks, credit unions, online lenders and through peer-to-peer lending platforms. Typically, personal loans can be used for any purpose you choose, although some do have restrictions placed on them. After you apply for the loan and provide the necessary financial information, your application will be approved or denied depending on your creditworthiness and other factors.\nAn unsecured personal loan is a type of installment credit, meaning you repay it over a set amount of time by making a certain number of fixed monthly payments. You'll typically need to start making payments on the loan as soon as you receive the proceeds. In most cases, the lender will disburse the money directly to you; however, if you're getting the loan to pay off credit card debt, the lender may send the money directly to the credit card companies.\nIf you don't already have an installment loan such as a student loan or car loan, getting an unsecured personal loan and making payments on time can have a positive impact on your credit scores by enhancing your credit mix. Credit mix, which refers to the variety of credit types you have, counts for 10% of your FICO® Score☉ . END
 TITLE: Are Unsecured Loans a Good Idea? CONTENT: Unsecured vs. Secured Personal Loans\n------------------------------------\nThere are two broad types of personal loans: secured and unsecured. To get a secured loan, you must pledge collateral—something of value that the lender can take if you don't pay the loan. Mortgage loans and auto loans are common types of secured loans. With these loans, the home or car you're financing acts as the collateral; if you default on the loan, the lender will foreclose on your house or repossess your car. For a secured personal loan, the lender might ask you to pledge collateral such as real estate, investment or bank accounts, insurance policies, or valuables such as art or antiques.\nBecause the lender has collateral to fall back on if you default on the loan, secured loans pose less risk for lenders. This can make it much easier to get a loan with less-than-stellar credit. Secured loans may give you access to higher loan amounts, along with lower interest rates and better terms than unsecured loans.\nThe big downside of a secured loan, of course, is the risk of losing your collateral if you can't pay the loan.\nUnsecured personal loans also have their own pros and cons. Because the lender is shouldering a bigger risk, you'll probably pay more interest than you would for a secured loan, and you may not be able to borrow as much money. You'll also need better credit to get an unsecured loan than a secured loan.\nThe big upside of an unsecured loan? You can get the money you need without jeopardizing your home or other assets. END
 TITLE: Are Unsecured Loans a Good Idea? CONTENT: What Happens if You Default on an Unsecured Loan?\n-------------------------------------------------\nMissing payments and defaulting on an unsecured loan won't cost you any collateral, but it tends to have a major impact on your credit. Because your payment history is the biggest factor in your credit score, missing even one loan payment can significantly affect your credit score.\nWhen you miss a payment, the lender will notify you—typically more than once—and may give you a 30-day grace period to bring your account current. If you fail to do so, eventually the lender will send your account to their in-house collections department or transfer it to a third-party collection agency. At that point, the past-due payment is reported to credit bureaus and shows up on your credit report.\nThe lender will try to get payment from you one way or another, and may even resort to filing a lawsuit to collect payment. Once your debt is in collections, your original account with the lender may show up on your credit history as a charge-off, indicating that the lender hasn't been able to collect from you and has given up. Your collection agency account will appear on your credit report as a separate account.\nCollection accounts stay on your credit report for seven years from the original delinquency date, even if you pay off the debt. Having an account in collections is a serious negative mark on your credit report that can drag down your credit scores and make it harder to get approved for credit in the future, or cause you to be charged a higher interest rate. END
 TITLE: Are Unsecured Loans a Good Idea? CONTENT: Alternatives to Unsecured Loans\n-------------------------------\nIf you're having trouble getting an unsecured personal loan, there are several alternatives to consider.\n*   **Get a secured personal loan.** If you haven't established a credit history or are trying to rebuild poor credit, it can be tough to get an unsecured personal loan. A secured personal loan could provide the money you need. If you're looking for a lower interest rate than an unsecured personal loan offers, a secured personal loan may cost less. Just keep in mind that if you default on a secured personal loan, you'll not only damage your credit, but also lose your collateral. Review your budget carefully before applying for a secured personal loan to be sure you can manage the payments.\n*   **Borrow from friends or family members.** Sometimes the best place to look for money is close to home. Do you have friends or family members who can lend you the money you need? If so, be sure to put the loan in writing, just as you would with a bank loan, and take repayment seriously. Otherwise, the collateral you lose could be your relationship.\n*   **Use a credit card.** A credit card could provide the money you need for a major expense or even help you pay off high-interest credit card debt. If you can find a credit card that offers a 0% introductory APR on purchases or balance transfers, you can transfer a high-interest credit card balance to it or use it for a big purchase. Just make sure you can pay off the balance before the regular APR takes effect and interest starts racking up.\n*   **Set up a payment plan.** Do you need a way to pay an unexpected tax, dental or medical bill? Instead of borrowing money, see if you can negotiate with the IRS, your dentist or your health care provider to make installment payments on what you owe. END
 TITLE: Are Unsecured Loans a Good Idea? CONTENT: Check Your Credit Before Applying for an Unsecured Loan\n-------------------------------------------------------\nTaking out an unsecured personal loan can help you handle unexpected expenses or pay for big purchases. But it's important to make sure you're getting the best personal loan for your situation. Before applying for any type of personal loan, review your credit report and scores to see where you stand. If you have good credit, you're more likely to be approved for an unsecured personal loan, so you can get the money you need without risking any of your assets as collateral. END
 TITLE: How Many Car Payments Can You Defer? CONTENT: What Is Auto Loan Deferment?\n----------------------------\nAuto loan deferment is when your lender agrees to let you pay a lower loan payment or not make a payment for a certain time period. Lenders sometimes refer to this as a _loan extension_ or _postponement_.\nNot every auto lender allows deferments, and those that do may have different criteria for approving one. For example, some lenders may require you be current on payments; others allow deferment even if your account is past due. The length of deferment also varies depending on your lender, but typically ranges from one to three months. With some deferments, you won't make a payment at all; with others, you'll pay only the interest on the loan during the deferment period.\nEach lender has its own deferment application process. Some build the option right into the loan agreement: All you have to do is choose the \"skip a payment\" option in your payment coupon book or on the lender's website where you normally make your payments.\nOther auto lenders ask you to submit a \"hardship letter\" to get approved for deferment. The letter explains why you're requesting a deferment and when you'll be able to start paying your loan again. Lenders review the hardship letter, check your credit score and look at your credit report to decide if you qualify for deferment. If they notice your credit score is lower than it was when you got your car loan, they may not approve your deferment.\nDeferring your payments isn't the same as eliminating them. You'll still be responsible for paying the full amount of any skipped or reduced payments after your deferment ends. These amounts will be added on to the end of your repayment period, extending your loan repayment period. Interest continues to accrue throughout your deferment, and lenders may charge fees for deferment. Before applying for a loan deferment, make sure you understand all the costs. END
 TITLE: How Many Car Payments Can You Defer? CONTENT: Can You Defer Your Auto Loan Payments More than Once?\n-----------------------------------------------------\nThe number of times you can defer your car payment depends on your lender. If you're considering applying for deferment, ask the lender if this is your only opportunity to do so, or if you can defer payments more than once.\nKeep in mind if you don't receive deferment and you miss a payment, your loan may move to default after as little as 30 days and your car could be at risk for repossession. Most lenders don't rush to repossess a car right away because the process costs them money—they would rather you make good on your loan and keep your car. If you have a history of late payments on your account, a poor credit score or other signs of ongoing financial difficulties, lenders may be more likely to act quickly. END
 TITLE: How Many Car Payments Can You Defer? CONTENT: Will a Car Loan Deferment Affect Your Credit?\n---------------------------------------------\nWhen a lender approves your deferment request, they may report to the credit bureaus that your loan is in deferment. Having a deferment mark on your credit report won't directly hurt or help your scores. What _will_ hurt your credit score is skipping a loan payment before the lender approves your deferment.\nNever assume your application for loan deferment has been approved and that you can stop making payments. Continue making your payments until you have it in writing that your lender or loan servicer has approved your application. END
 TITLE: How Many Car Payments Can You Defer? CONTENT: Alternatives to Auto Loan Deferment\n-----------------------------------\nIf you can't get an auto loan deferment, here are some alternatives to consider.\n**Change your payment due date.** Are you facing a temporary cash shortage? Some lenders will let you change your payment due date. If your car payment is due a few days before payday every month, requesting a slightly later due date could be all you need to do to get back on track.\n**Ask your lender about hardship options.** If you don't think you'll be able to pay your auto loan going forward, contact your lender to ask if they can offer any hardship options. If you are proactive about your problems, some lenders will work with you, especially in unusual situations such as a major economic downturn.\n**Refinance your loan.** When you refinance an auto loan, you get a loan from a new lender, who pays off your old loan. Ideally, your new loan will have a lower interest rate, reducing your monthly payments. A longer loan term can also lower your monthly payments.\nBut refinancing an auto loan isn't a slam-dunk. You're most likely to be approved for refinancing your loan if you're current on your car payments, you have a steady income, and your credit score has improved since you got the original loan. In addition, lenders may not refinance a loan if your car is too old or if the loan payoff amount isn't within their approved range.\nRefinancing will generally cost you more in the long run than sticking with your existing loan. Even if your payments are smaller, a longer repayment term means you'll pay more interest over the life of the loan. Your current lender could also charge you a prepayment penalty for paying off the loan early, adding to your costs.\n**Get someone else to assume the loan.** If your auto loan agreement allows it (many don't), you may be able to transfer the loan to someone else. That person must have a credit score at least as good as yours and be able to assume payments of at least the same amount as yours. Once the lender approves them, they will be issued a new loan. If you want to take this route, you may still want to apply for a loan deferment so you won't have to make payments while waiting for your loan transfer to get approved.\n**Sell the car.** If you have equity in your car (that is, the car is worth more than you owe on the loan), you may be able to sell the car to a private party and use the proceeds to pay off the loan. This can be a smart move if you have an expensive car with a high monthly payment you can no longer afford. Depending on how much you get for the car, you might have money left over to buy a cheaper vehicle.\n**Voluntarily surrender the car.** Having a car repossessed because you can't make your payments will not only damage your credit score but can also be a humiliating experience. To avoid the embarrassment and show the lender you are acting in good faith, you can voluntarily surrender the car to the lender. The lender will sell the car and use the proceeds to pay off your loan. If the proceeds aren't enough to pay off your loan in full, however, you'll still be responsible for the balance. While a voluntary surrender has an extremely negative impact on your credit score, it is slightly less damaging than having a repossession on your credit report. END
 TITLE: How Many Car Payments Can You Defer? CONTENT: Should You Apply for a Car Loan Deferment?\n------------------------------------------\nAn auto loan deferment that lets you skip or reduce your loan payment temporarily could be the break you need if you can't make your payment. If you're considering this option, talk to your lender to find out how long the deferment lasts, how much it will cost and whether you can defer payments more than once. You'll generally need a good credit score to get a deferment; check your credit score before applying to see where you stand. Getting approved for a deferment on your car loan isn't to be taken lightly, but it could make all the difference in keeping up with your payments—and keeping up your credit score. END
 TITLE: What Is the Difference Between Private and Federal Student Loans? CONTENT: Federal student loans, also known as direct loans, are funded by the U.S. Department of Education (although a loan servicing company will handle your loan).\nThere are several types of federal student loans, including for undergraduate students, graduate students and students pursuing professional education. Each type of federal student loan has its own set of requirements; some are available only to students who have financial need, while others are offered regardless of need.\nAll federal student loan borrowers must first complete and submit a Free Application for Federal Student Aid (FAFSA) form. This application is used to determine if you're eligible for federal student loans; if not, you may need to look into private student loans.\nTo borrow money using a federal student loan, you must meet some basic eligibility criteria. For instance, you must be a U.S. citizen or eligible noncitizen; have a valid Social Security number; be enrolled or approved to enroll in an eligible degree or certificate program; be enrolled at least half time (for direct loans); and be making satisfactory academic progress. If you're male between the ages of 18 and 25, you must also be registered with the Selective Service. END
 TITLE: What Is the Difference Between Private and Federal Student Loans? CONTENT: What Is a Private Student Loan?\n-------------------------------\nPrivate student loans are made by banks, credit unions and other financial institutions—not the government. You can apply for a private student loan at any time, but you should always complete the FAFSA first to see if you qualify for any federal student loans. In a contrast to federal student loans that may set parameters on how the money is used, private student loans can be used for whatever expenses you want.\nEligibility for private student loans depends on your income, credit history and credit score. The better your credit is, the better interest rate and loan terms you may qualify for. As a student who may not have a long credit history, having a parent cosign on your loan application may boost your chances of approval. END
 TITLE: What Is the Difference Between Private and Federal Student Loans? CONTENT: Differences Between Federal and Private Student Loans\n-----------------------------------------------------\nThere are some key differences between federal and private student loans when it comes to whether you'll qualify as well as how you'll repay the loans and how they'll accrue interest. END
 TITLE: What Is the Difference Between Private and Federal Student Loans? CONTENT: Which Student Loan Is Right for Me?\n-----------------------------------\nFederal student loans should be your first choice when you're looking to borrow money for college. They offer approval with no credit check; low, fixed interest rates that are the same for every borrower; and plentiful options for repayment. Plus, if you qualify for a direct subsidized loan, you won't have to pay interest on the loan as long as you're attending school at least half time.\nOn the downside, student and Parent PLUS loans often have high interest rates. Because federal student loans set limits on how much you can borrow, you could borrow the maximum amount and still find yourself in need of money.\nIf you have exceptional credit and can qualify for a loan with a low interest rate and no origination fee, a private student loan could be the best option for you. (It could also be your only option if you've reached your federal loan limit and still need additional money.)\nWhether a federal or private student loan is right for you depends on a variety of factors, including your income, how much money you need and your credit score. To find the best fit, take the time to carefully weigh your options—and be sure to read the fine print on any loan agreement before you commit to a student loan. END
 TITLE: How Does Financing a Car Work? CONTENT: What Is Car Financing?\n----------------------\nWhen you finance a car, a financial institution lends you the money you need to pay for the vehicle in the form of installment credit. You'll typically need to make a down payment equivalent to a percentage of the loan amount, then repay the rest of the vehicle's purchase price over a set time period (the loan term) by making regular monthly payments.\nAs with any loan, auto lenders make money by charging you interest on the loan and additional fees for processing and issuing the loan. The car itself acts as collateral on the loan, which means the lender has the right to take (repossess) your car if you can't keep up with your payments. END
 TITLE: How Does Financing a Car Work? CONTENT: Who Offers Car Financing?\n-------------------------\nYou can get auto financing through a variety of financial institutions. Banks and credit unions are common places to get car loans. If you have a general idea how much the car you want will cost, you can contact your bank or credit union and get preapproval for a loan. They'll give you a letter confirming the amount you can borrow and the interest rate. Just be aware interest rates may change a bit when you actually purchase the car and the bank or credit union runs a complete credit check to finalize your loan approval.\nYou can also find online auto lenders and online marketplaces that can match you with the best car loan for your needs. These sites typically let you compare offers from several lenders to find the one that works for you.\nAnother place to get financing is the auto dealership itself. Dealerships may arrange financing for you through outside lenders; you'll apply for a loan at the dealership and get approval on the spot. This may cost a bit more than getting a loan on your own, since dealerships generally build some profit for themselves into the cost.\nSome dealerships offer their own in-house financing. Known as \"buy here, pay here\" financing, this is something to avoid if at all possible. These loans are designed for people with bad credit, so interest rates and down payment requirements tend to be very high.\nIf you wait until you've fallen in love with a particular car to apply for financing at the dealership, you may be more likely to accept less-than-ideal loan terms. That's why getting preapproved for an auto loan on your own before you visit the dealership can be a smart idea. Armed with your preapproved loan terms, you can negotiate for better terms and get the right auto loan for your needs. END
 TITLE: How Does Financing a Car Work? CONTENT: What Credit Score Do I Need to Finance a Car?\n---------------------------------------------\nThe credit score needed to qualify for a car loan varies based on the lender and the type of financing. Auto lenders may even differ in the credit scoring model they want to use to assess your creditworthiness. As a result, there isn't one set minimum credit score that all lenders require. That said, people with higher credit scores and longer credit histories can generally qualify for better loan terms and lower interest rates.\nIf your FICO® Score☉ is good or better, you should be able to qualify for favorable auto loans. A score in the \"fair\" range usually won't keep you from getting approved; however, it may mean you'll pay higher interest rates or have to make a bigger down payment. If you have a poor credit score or simply want to qualify for the best possible terms, spend some time working on your credit score before you apply for an auto loan. END
 TITLE: How Does Financing a Car Work? CONTENT: Things to Keep in Mind When Applying for a Car Loan\n---------------------------------------------------\nThe sticker price of the car isn't the only cost to consider when applying for car financing. Here are some key terms you need to be aware of.\n*   **Down payment**: The amount of cash you need to put down to take out the loan. If you have good to excellent credit, you may be able to qualify for zero-down-payment offers. When deciding your down payment amount, remember that the more you put down, the less money you need to borrow—and a smaller loan means you'll pay less interest over time.\n*   **Annual percentage rate** **(APR)**: Your loan's APR will include the interest rate for the loan as well as any fees or other charges to reflect the total cost of borrowing money. If you're weighing two loan offers, comparing the APR is a good way to assess which loan will cost you more in the long run.\n*   **Taxes**: State sales taxes on vehicles must be paid at the time of purchase. Depending on where you buy the car and how much it costs, this can add several thousand dollars to your cost.\n*   **Fees**: In addition to the fees to register your new car with your state's motor vehicle department, you may have to pay other fees charged by the dealership, such as destination or documentation fees.\n*   **Terms**: The term is how long you have to pay back the loan. Auto loan terms generally range from 36 to 72 months; you can even find 84-month auto loans. Choosing a longer loan term will lower your monthly payments, but at the cost of paying more interest over time. A shorter loan term means higher monthly payments, but lower interest payments overall; in addition, lenders often offer lower interest rates for shorter-term loans.\n*   **Monthly payments**: To repay your auto loan, you'll make set monthly payments that include both principal and interest. Experts advise keeping your monthly car payment to 10% or less of your take-home pay. It's important to keep the monthly payment manageable, because if you have trouble paying your car loan, it could hurt your credit score—and if you miss too many payments, your car might be repossessed. Ideally, look for the shortest loan term with affordable payments. END
 TITLE: How Does Financing a Car Work? CONTENT: Alternative Types of Auto Financing\n-----------------------------------\nTraditional auto loans aren't the only way to secure and pay for a car. Here are some other options that may work for you.\n*   **Leasing a car**: Leasing offers a way to drive a new car without buying it. A lease is essentially a long-term rental, so you'll return the car to the dealership or leasing company after driving it for a few years. Monthly lease payments are generally lower than a loan payment for the same car would be. Leasing a car typically requires a down payment and fees, and you may have to put up with some restrictions—there may be a limit on how many miles you can drive each year, for instance. However, if your goal is to drive the latest vehicle without making a big investment, leasing could be an option. Just keep in mind you'll need good to excellent credit to qualify for most leases.\n*   **Paying cash**: Paying for a car in cash isn't feasible for most people, especially if you have your heart set on a brand-new model. But for those who can manage it, paying cash eliminates the need to take out a car loan. Chances are, you'll need to save up a few thousand dollars for a down payment anyway. If you don't need the car immediately, take the time to save up a little more. As long as you don't need all the bells and whistles and just want basic transportation, you can find reliable used cars for $5,000 or less.\n*   **Peer-to-peer lending**: Peer-to-peer (P2P) loans are made not by banks or car dealerships, but from one individual to another. These are personal loans you can use for any purpose, including buying a car. You can find P2P loans on online platforms, such as Prosper, Lending Club and Peerform, that match you with individuals willing to issue loans. Interest rates on P2P loans can vary widely, and you'll generally need good credit to get approved; however, it's easy to apply online and compare different interest rates and terms to find the best peer-to-peer loan. END
 TITLE: How Does Financing a Car Work? CONTENT: The Best Way to Finance a Car\n-----------------------------\nAs you can see, there are plenty of ways to finance your new car. To get the best possible auto loan, start by checking your credit report and credit score. A good credit score gives you more choices and can help you get better loan terms. Investigating car loans from your bank, credit union and online lenders before you visit an auto dealership will give you a clear idea of your options, putting you in a strong position to negotiate favorable financing for your new wheels. END
 TITLE: 8 Ways to Get Emergency Financing for Your Small Business CONTENT: 1\\. Small Business Administration (SBA) Loans\n---------------------------------------------\nIf your business has been affected by COVID-19, start by investigating what benefits or relief you may be eligible for through the Coronavirus Aid, Relief and Economic Security (CARES) Act. This emergency stimulus package includes SBA-guaranteed loans that can help you pay employees, access emergency cash and get six months of debt relief on qualifying loans. The initial phase of the program quickly ran out of funds, but on April 24, the president signed a bill appropriating over $320 billion for Paycheck Protection Program (PPP) loans, with about $60 billion of that set aside for small businesses, as well as $60 billion for the SBA disaster relief fund.\nIf you already have a relationship with an SBA lender, you may be eligible for the SBA Express Bridge Loan, which provides up to $25,000 with the expectation the money will be repaid from an Economic Injury Disaster Loan (EIDL).\n**Pros**: PPP loans may be eligible for forgiveness if used for approved purposes and if employees are kept on payroll. Emergency Economic Injury Grants of up to $10,000 do not have to be repaid. Both EIDL and Express Bridge loans promise fast turnaround.\n**Cons**: High demand means the program may quickly run out of money again; if you don't have an existing relationship with an SBA lender, it may be difficult to get approved. END
 TITLE: 8 Ways to Get Emergency Financing for Your Small Business CONTENT: 2\\. Small Business Line of Credit\n---------------------------------\nWhile most small business financing comes in the form of installment credit, a business line of credit is a type of revolving credit. As with a credit card, you are given a credit limit and can draw funds up to that amount. You don't have to make payments until you actually draw on the funds; as you pay back the money, it becomes available to borrow again. A business line of credit can be a good emergency tool for companies that regularly need working capital, such as seasonal businesses with predictable downtimes or companies that need to buy materials or inventory long before they can sell it.\n**Pros**: Flexibility; you don't have to pay it back until you use it. You can draw from the line of credit repeatedly without reapplying for more.\n**Cons**: Interest rates are usually higher than on bank loans; smaller limits than bank loans. END
 TITLE: 8 Ways to Get Emergency Financing for Your Small Business CONTENT: 3\\. Online Lenders\n------------------\nWith their sometimes lengthy approval processes and stringent criteria, traditional bank loans don't work for many small businesses that need cash quickly. Many banks are reluctant to write small loans, so unless you're seeking hundreds of thousands of dollars, a bank may not fit your needs. Online lenders fill the gap by offering smaller loan amounts, easy application processes and looser approval requirements. You can usually apply for these loans online, get approved right away and have the money in your bank account in a day if you are approved—sometimes faster.\n**Pros**: Quick access to cash; simple approval process; good fit for smaller loans.\n**Cons**: Smaller loans and higher interest rates than traditional bank loans. END
 TITLE: 8 Ways to Get Emergency Financing for Your Small Business CONTENT: 4\\. Invoice Financing\n---------------------\nDoes your business frequently invoice customers for work done or products delivered, but wait 60, 90 or 120 days to get paid? Large corporate or government customers often pay slowly, which can create a cash crunch for your business. Invoice financing could be the answer. Here's how it works: You sell your outstanding invoices to a financing company in return for a percentage of their face value, typically 80% to 95%. When the full invoice is collected, you'll get the rest of its value, minus the financing company's fee.\nInvoice factoring companies and invoice financing companies both offer this service. The difference is that a factoring company takes over collecting your invoices, which might cause confusion or make customers worry that your business is in financial trouble. A financing company lets you continue collecting on the invoices yourself, so customers never know you've used the service.\n**Pros**: Quick access to cash; ability to borrow against money you're already owed.\n**Cons**: High interest rates; if a factoring company contacts your customers, customers may think your business is in trouble. END
 TITLE: 8 Ways to Get Emergency Financing for Your Small Business CONTENT: 5\\. Merchant Cash Advance\n-------------------------\nCompanies such as restaurants and retailers that collect most of their payments via credit or debit cards may find a merchant cash advance a quick source of emergency financing.\nMerchant cash advance companies lend you money against your projected future credit or debit card payments from your customers. They then take a percentage of your credit or debit card payments, either daily or weekly, to pay themselves back.\n**Pros**: Quick approval; rapid access to funds.\n**Cons**: Very high interest rates; daily or weekly repayment can drain cash flow; if your future sales are uncertain, you may not be approved. END
 TITLE: 8 Ways to Get Emergency Financing for Your Small Business CONTENT: 6\\. Equipment Financing\n-----------------------\nIf a key piece of equipment has worn out and needs to be replaced, or a sudden demand requires more equipment to keep pace, equipment financing can help. You can find companies that specialize in equipment financing; many business equipment vendors or manufacturers also have their own financing programs.\n**Pros**: Can spread the cost of necessary equipment over time; the equipment itself serves as collateral.\n**Cons**: If you can't repay the loan, the lender will repossess the equipment. END
 TITLE: 8 Ways to Get Emergency Financing for Your Small Business CONTENT: 7\\. Business Credit Cards\n-------------------------\nYou probably already have a business credit card in your wallet. If you don't, appealing business credit card offers are easy to find. A business credit card that offers a 0% introductory APR for six months, 12 months or longer can be used to pay for inventory, supplies, equipment or business services without racking up interest. Try to avoid using business credit cards for cash advances, however; the cash advance APR is generally much higher than that for purchases.\n**Pros**: Easy approval process; flexible payment options; potential for 0% introductory APR.\n**Cons**: High standard interest rates, especially if used for cash advances. END
 TITLE: 8 Ways to Get Emergency Financing for Your Small Business CONTENT: 8\\. Family and Friends\n----------------------\nSometimes the people who know and trust you are the best source of emergency business capital. However, there are two things to keep in mind before you approach your loved ones. First, borrow only from people who can afford to lose the money if you can't pay it back (not from your retired aunt who's on a fixed income). Second, treat the transaction as you would any business loan. Write up a loan document, pay interest and set a schedule for making regular loan payments.\n**Pros**: Can be easy to get.\n**Cons**: Failure to pay the loan back could hurt your relationship.\nWhat to Consider When Seeking Emergency Financing\n-------------------------------------------------\nNo matter what type of emergency financing you decide to apply for, here are some factors to keep in mind.\n*   **Know exactly what you want.** How much money do you need? What will you use it for (for example, buying three new delivery trucks)? How will the money measurably benefit your business (for example, doubling production capacity)? How much time do you need to repay the loan? Answering these questions will help you determine the best source of financing and increase your chances of getting approved. Create financial projections to assess the financial impact of the loan and your ability to repay it.\n*   **Match the source of capital to your need.** Generally, emergency financing is for short-term needs, which shouldn't be financed with a long-term loan. Look for short-term loans, which generally have terms of 24 months or less.\n*   **Give lenders what they want to see.** Even lenders with streamlined approval processes will ask for certain basic information, such as your years in business and your annual sales. They will also consider your business credit score and, in some cases, your personal credit score. From now through May 15, 2020, Experian is offering companies a [free business credit report](;link=5051&nofocus=1) so you can see where you stand before applying for financing.\nYour current business bank is the first place you should look when seeking emergency financing. They know you and understand your business, which may speed up the approval process. But don't stop there: Shop around and compare different lenders to find the best possible terms.\nSCORE and your local Small Business Development Center are two valuable resources to help you identify the best financing options. You can also visit online business loan marketplaces to search for the type of financing you need and get matched with lenders. Popular loan marketplaces include:\n*   Biz2Credit\n*   Fundera\n*   Lendio\n*   MultiFunding\nThere are also online lenders that directly finance your business. Here are some of the most popular to consider:\n*   BlueVine: Term loans and lines of credit up to $250,000; invoice factoring up to $5 million\n*   Funding Circle: Term loans up to $500,000\n*   Fundbox: Line of credit up to $100,000\n*   Kabbage: Lines of credit up to $250,000\n*   OnDeck: Term loans up to $500,000; lines of credit up to $100,000\nShould You Finance a Business Emergency With Personal Funds?\n------------------------------------------------------------\nIn your search for fast business financing, it can be tempting to turn to a personal loan, home equity line of credit or personal credit card for quick cash. But mingling personal and business funds is usually a mistake. At best, it could lead to problems at tax time by blurring the line between personal and business income and expenses. At worst, it can put your personal credit score—or even your home—on the line if you can't repay the loan.\nFinding the Right Emergency Financing\n-------------------------------------\nWhen your business is short of cash and you need quick financing to tide you over, it's easy to panic. But don't jump at the first emergency financing source you find. Think carefully about how much money you need and why, be prepared with the information lenders want, and research multiple options to find the best financing terms.\nSmall businesses have more alternatives than ever before for emergency financing. By doing some research and weighing the pros and cons of each option, you'll be able to find the perfect financing source for your business. END
 TITLE: 8 Ways to Get Emergency Financing for Your Small Business CONTENT: What to Consider When Seeking Emergency Financing\n-------------------------------------------------\nNo matter what type of emergency financing you decide to apply for, here are some factors to keep in mind.\n*   **Know exactly what you want.** How much money do you need? What will you use it for (for example, buying three new delivery trucks)? How will the money measurably benefit your business (for example, doubling production capacity)? How much time do you need to repay the loan? Answering these questions will help you determine the best source of financing and increase your chances of getting approved. Create financial projections to assess the financial impact of the loan and your ability to repay it.\n*   **Match the source of capital to your need.** Generally, emergency financing is for short-term needs, which shouldn't be financed with a long-term loan. Look for short-term loans, which generally have terms of 24 months or less.\n*   **Give lenders what they want to see.** Even lenders with streamlined approval processes will ask for certain basic information, such as your years in business and your annual sales. They will also consider your business credit score and, in some cases, your personal credit score. From now through May 15, 2020, Experian is offering companies a [free business credit report](;link=5051&nofocus=1) so you can see where you stand before applying for financing. END
 TITLE: 8 Ways to Get Emergency Financing for Your Small Business CONTENT: Your current business bank is the first place you should look when seeking emergency financing. They know you and understand your business, which may speed up the approval process. But don't stop there: Shop around and compare different lenders to find the best possible terms.\nSCORE and your local Small Business Development Center are two valuable resources to help you identify the best financing options. You can also visit online business loan marketplaces to search for the type of financing you need and get matched with lenders. Popular loan marketplaces include:\n*   Biz2Credit\n*   Fundera\n*   Lendio\n*   MultiFunding\nThere are also online lenders that directly finance your business. Here are some of the most popular to consider:\n*   BlueVine: Term loans and lines of credit up to $250,000; invoice factoring up to $5 million\n*   Funding Circle: Term loans up to $500,000\n*   Fundbox: Line of credit up to $100,000\n*   Kabbage: Lines of credit up to $250,000\n*   OnDeck: Term loans up to $500,000; lines of credit up to $100,000 END
 TITLE: 8 Ways to Get Emergency Financing for Your Small Business CONTENT: Should You Finance a Business Emergency With Personal Funds?\n------------------------------------------------------------\nIn your search for fast business financing, it can be tempting to turn to a personal loan, home equity line of credit or personal credit card for quick cash. But mingling personal and business funds is usually a mistake. At best, it could lead to problems at tax time by blurring the line between personal and business income and expenses. At worst, it can put your personal credit score—or even your home—on the line if you can't repay the loan. END
 TITLE: 8 Ways to Get Emergency Financing for Your Small Business CONTENT: Finding the Right Emergency Financing\n-------------------------------------\nWhen your business is short of cash and you need quick financing to tide you over, it's easy to panic. But don't jump at the first emergency financing source you find. Think carefully about how much money you need and why, be prepared with the information lenders want, and research multiple options to find the best financing terms.\nSmall businesses have more alternatives than ever before for emergency financing. By doing some research and weighing the pros and cons of each option, you'll be able to find the perfect financing source for your business. END
 TITLE: How to Maintain Your Business Credit Score During the COVID-19 Crisis CONTENT: Why Is Your Business Credit Score Important?\n--------------------------------------------\nJust as your personal credit score affects whether you can get approved for loans, credit cards and other forms of personal credit, your business credit score affects your ability to obtain credit for your business. For example, your business credit score may impact whether you can get a business loan, credit card or line of credit; how much credit you can get; and what your terms will be.\nIn addition to lenders, your suppliers, vendors, landlord, insurers and others may consider your business credit score when deciding whether to do business with you. A poor business credit score can limit your opportunities. For example, a supplier who decides you aren't creditworthy may require cash on delivery rather than extending credit—or may opt not to do business with you at all. END
 TITLE: How to Maintain Your Business Credit Score During the COVID-19 Crisis CONTENT: There are three major business credit bureaus: Experian, Dun & Bradstreet and Equifax. You can check your business credit report with each of the three business credit bureaus. Although there is generally a fee, it's often worth the cost to know this key data about your business.\nCredit bureaus gather data on your business from a variety of sources, including:\n*   Lenders and credit card companies\n*   Vendors, suppliers and other companies you do business with\n*   Legal filings and information from courts and public records\n*   Independent sources, such as collection agencies\nEach of the business credit bureaus has its own credit scoring methods. In general, however, business credit scores range from 1 to 100, with higher scores indicating better credit. Experian assesses your business credit score using the following factors:\n*   **Credit**: Number of trade experiences, balances outstanding, payment habits, credit utilization and trends over time\n*   **Public records**: Recency, frequency and dollar amounts associated with liens, judgments or bankruptcies\n*   **Demographic information**: Years in business, Standard Industrial Classification (SIC) code and business size END
 TITLE: How to Maintain Your Business Credit Score During the COVID-19 Crisis CONTENT: How Is Your Personal Credit Score Related to Your Business Credit Score?\n------------------------------------------------------------------------\nYour personal credit score and your business credit score are two separate scores. However, lenders and others may consider both scores, especially if you're a sole proprietorship or if your business is relatively new and doesn't have a substantial credit history of its own.\nIn addition, some business credit cards require a personal guarantee and report card activity to your personal credit report. This can affect your personal credit score negatively or positively, depending on how well you manage business credit. The same is true for any business loans that consider your personal credit history for approval.\nIdeally, you should maintain a clear separation between your business and personal finances. This will firmly establish your company as a business rather than a hobby and increase its credibility in the eyes of lenders, suppliers and the IRS.\nHaving credit issued to your business, and not linked to you personally, can also protect your personal credit history in the event your business faces financial difficulty. END
 TITLE: How to Maintain Your Business Credit Score During the COVID-19 Crisis CONTENT: How Can Your Business Credit Score Help You During an Economic Crisis (and After)?\n----------------------------------------------------------------------------------\nDuring an economic crisis, banks and other lenders often tighten their criteria for loans and other financing. Having a strong business credit score can help your business get approved for credit and obtain more favorable terms. A good business credit score also shows suppliers, partners and landlords that you're creditworthy, which may make them more willing to negotiate with you during a crisis. For example, a supplier who knows you are creditworthy might let you extend payment to net 60 or even net 90 rather than net 30.\nAccess to credit during a downturn can enable your business to take advantage of opportunities that other, financially strapped companies are forced to pass up. When the economic crisis passes, your business will be better positioned to benefit from pent-up customer demand. END
 TITLE: How to Maintain Your Business Credit Score During the COVID-19 Crisis CONTENT: What to Do to Keep Your Business Credit Score From Plunging\n-----------------------------------------------------------\nTo maintain a strong business credit score during a downturn, follow these steps.\n*   Check your [business credit report](;link=5051&nofocus=1) to make sure it's complete and accurate. If you find errors or omissions, contact the credit reporting agency to correct the problems.\n*   Make sure your creditors, suppliers and partners report your payments to the three major business credit bureaus.\n*   Be diligent about paying your bills on time. If you think you will have trouble making a payment, talk to your creditor well in advance. Many may be willing to work with you.\n*   If you can't pay the full amount due on a business credit card, at least make the minimum payment on time. Set up automatic payments to ensure you don't miss a due date. END
 TITLE: How to Maintain Your Business Credit Score During the COVID-19 Crisis CONTENT: How to Maintain a Good Business Credit Score Going Forward\n----------------------------------------------------------\nGoing forward, how can you maintain a good business credit score? As the economy improves, getting a small business loan and paying it back or asking more suppliers for trade credit and paying on time can help to boost your credit score. However, the most important factor in a good business credit score is keeping up the good credit habits discussed above.\nBusiness Credit AdvantageSM, an Experian service that monitors your business credit daily, can help you keep an eye on your business credit score. The service sends you alerts of any changes to your credit score and helps protect you from fraud. Your business credit score is a valuable asset to your business; treat it like one, and you'll reap the benefits. END
 TITLE: Does Breaking a Lease Affect Your Credit? CONTENT: What Happens When You Break a Lease Early?\n------------------------------------------\nYour lease agreement may explain what will happen if you break a lease early. It might even provide steps for you to do so, such as giving a certain amount of notice, paying two months' rent and an early termination fee, or giving up your security deposit. In this case, you simply follow the steps listed in the lease and make the required payments to the landlord.\nWhat happens if the agreement doesn't specify consequences for breaking the lease? This can vary depending on the laws in your state. In many states, landlords are legally required to look for a replacement tenant to mitigate their loss and your owed rent. In the best-case scenario, your landlord finds a replacement quickly, and you only have to pay rent for a month or two.\nIf the landlord can't find a suitable replacement, however, you might be on the hook for the rent for several months—or, in the worst-case scenario, for the entire duration of the lease. If you can't pay, you could face the following consequences:\n*   **You could have trouble renting in the future.** When you apply to rent a property, landlords may contact your previous landlords or check your tenant screening report, which shows your rental history. If they find out that you broke a lease, they may be leery of renting to you.\n*   **Your landlord may turn your rent debt over to collections.** Landlords often use collection agencies to collect unpaid rent. If you don't pay the collection agency after a certain amount of time, the agency may be able to take you to court.\n*   **Your landlord may sue you.** If your landlord sues you for unpaid outstanding rent and you lose, you could have to pay the landlord the rent plus court costs. If you can't afford to pay, the court could garnish your wages to pay the landlord back. END
 TITLE: Does Breaking a Lease Affect Your Credit? CONTENT: How Breaking a Lease Can Hurt Your Credit\n-----------------------------------------\nIf you pay all outstanding charges before moving, including any back rent and fees, breaking a lease won't hurt your credit score. However, breaking a lease can damage your credit if it results in unpaid debt. For example, if you break a six-month lease in the third month and the landlord can't find a suitable replacement, you might have to pay the remaining three months' rent. If you don't pay, the landlord may send your account to a collection agency, which will attempt to get payment.\nLandlords generally don't report unpaid rent to credit bureaus. However, once your account goes to collections, the collection agency will likely report it. Collection accounts stay on your credit report for seven years and can significantly hurt your credit score.\nEven if you think you've done everything right, your account could still end up in collections if you or the landlord aren't clear about the lease terms. Before moving out, read your lease agreement to make sure you understand the terms. Settle all your debts with the landlord, and keep records of your payments to prove that you're squared away. END
 TITLE: Does Breaking a Lease Affect Your Credit? CONTENT: How to Break a Lease Without Ruining Your Credit\n------------------------------------------------\nIf you have to break a lease, take the following steps to help keep it from affecting your credit.\n*   **Be open with your landlord.** Landlords are often willing to work with you if you communicate with them. As soon as you know you need to move or think you may have trouble paying rent, talk to your landlord. You may be able to negotiate a solution that satisfies both of you and keeps the landlord from taking any negative action that could affect your credit.\n*   **Understand your legal rights.** Review your lease agreement to make sure you understand the terms. The contract might include options for breaking your lease by paying fees or finding a replacement tenant. Research state and local laws to see how they affect your situation. In some states, there are legal justifications for breaking a lease (more on that below).\n*   **Pay any outstanding rental debts.** Be sure to pay all outstanding charges before moving. Read your lease agreement to determine what kind of rent and fees you'll have to pay if you break the lease, and make sure to clarify the amount owed with your landlord.\n*   **Find a replacement.** Finding a replacement to sublet or rent the property can minimize the landlord's financial loss. The landlord will be looking for a new tenant, of course, but you can help the process along.\n    *   **Sublet:** When you sublet, you find someone else to move in and pay the rent, but your name stays on the lease. Technically, this lets you move out without breaking the lease. However, you'll need to make sure subletting is legal in your location and that your landlord agrees to the sublet. Also make sure the person who sublets is reliable. Having your name is on the lease means you're ultimately responsible for the rent if they don't pay.\n    *   **Find a new tenant:** Help the landlord spread the word by letting your friends, family and co-workers know your place is available. The faster a new tenant moves in, the faster you'll be off the hook for the rent, so it's in your best interest to help the landlord out.\n*   **Keep detailed records**. No matter how you handle the process of breaking the lease, it's a good idea to put all conversations with your landlord in writing, and to keep records of all your payments. If a mix-up occurs and something negative shows up on your credit report later, having good records will make it easier to dispute.\nDepending on your city or state, there may be legally justifiable situations in which you can break a lease without facing any repercussions.\n*   **Uninhabitable property:** Landlords are required to maintain the property in livable condition. If your electricity, gas, heating or plumbing doesn't work; the roof leaks; or the property is infested with vermin, you may be within your rights to break the lease.\n*   **Breach of quiet:** You have a right to peaceful enjoyment of your home, meaning the property should be reasonably quiet and safe. If your landlord or other tenants breach your enjoyment, you may be justified in breaking the lease. Examples include a landlord who constantly calls you or visits your property without warning, or another tenant who plays loud music until 3 a.m. every night.\n*   **Active military duty:** If you're called up for active military duty and you signed the lease before entering military service, you can break the lease. If you signed the lease after entering service, you can break it if you get orders to deploy for 90 days or longer or to permanently change your station.\n*   **You're being harassed or are in dangers:** In many states, victims of domestic violence, harassment, stalking or sexual assault have the right to terminate a lease early. You may have to provide proof of the danger, such as a police report, to break the lease.\n*   **The lease includes a termination clause:** Some leases specify certain conditions under which you can break the lease early. For instance, you might have to pay two months' rent before you leave.\nBe sure to check state and local laws before making any decisions. You can also get help from local tenants' rights organizations, tenants' unions or rent boards. END
 TITLE: Does Breaking a Lease Affect Your Credit? CONTENT: Keeping Your Good Credit After You Break a Lease\n------------------------------------------------\nYou can break a lease without hurting your credit as long as you take the right steps. Review your lease to make sure you understand the terms, communicate with your landlord well in advance of breaking the lease, and pay what you owe before you move out. It's also a good idea to check your credit report a few months after breaking your lease to make sure nothing negative has appeared. Keeping careful records will give you the ammunition you need to dispute errors on your credit report that may arise from breaking a lease. If you're worried that breaking a lease will hurt your credit in the future, setting up free credit monitoring can alert you to any problems down the road. END
 TITLE: Business Loan or Business Line of Credit: Which Is Best for You? CONTENT: What Is a Business Loan?\n------------------------\nBusiness loans, sometimes called term loans, provide small business owners with a lump sum they must pay back over time, with interest. There are different types of business loans for different purposes. Long-term business loans are designed to finance long-term investments, such as purchasing or remodeling a building. They are generally for larger amounts and are repaid over three years or more.\nSmaller, short-term business loans, often called working capital loans, can help with immediate capital needs, such as buying inventory or paying employees and rent during a slow season. Short-term loans typically have a six-month to 24-month term.\nIf you need to buy machinery or equipment, an equipment loan can help. These loans may be offered by banks, equipment financing companies or manufacturers. They use the goods you're purchasing as collateral.\nInvoice financing is another type of loan that advances you money against your outstanding invoices, minus a fee. END
 TITLE: Business Loan or Business Line of Credit: Which Is Best for You? CONTENT: How Do You Get A Business Loan?\n-------------------------------\nYou can get business loans from a variety of sources, including large commercial banks, community banks and direct online lenders. Established businesses can get loans backed by the Small Business Administration (SBA). Called SBA-guaranteed loans, these loans are made through approved lenders and range from $500 up to $5.5 million depending on which SBA loan program is used.\nBank loans and SBA loans have the most stringent requirements for loan approval. When approaching these lenders, you'll generally need to provide documentation including a detailed business plan; bank statements; contracts and incorporation documents; financial statements and financial projections. You may also be required to put up collateral—either business property such as machinery, inventory or accounts receivable, or personal collateral such as your home.\nMost lenders will consider both your business and personal credit scores, so before you apply for a loan, get a copy of your business credit report and personal credit report as well as your personal credit score. Knowing your credit scores will help you identify which types of loans you're most likely to qualify for. The higher your scores, the more likely you are to be approved for loans with stricter criteria, such as SBA loans. If your scores are only fair, you'll probably have better luck approaching lenders that have looser criteria.\nBusiness loans typically have fixed interest rates. The rate you can qualify for will vary depending on the loan amount, the type of loan, the lender and your business's creditworthiness. END
 TITLE: Business Loan or Business Line of Credit: Which Is Best for You? CONTENT: Similar to a credit card, a business line of credit allows you to borrow up to a set limit. You pay interest only on the amount you've borrowed. You can choose to pay off the full amount every month or only the minimum payment, but just as with a credit card, any balance you carry will accrue interest. As you repay the money you've borrowed, you can draw on those funds again, up to your credit limit, without having to reapply or get reapproved.\nBusiness lines of credit are designed for short-term financial needs. For example, a retailer might use a line of credit to buy extra inventory and pay seasonal employees during the holiday shopping season. You can also get a business line of credit to use as an \"emergency fund,\" even if you don't have an immediate need for it. If an emergency arises, you can quickly access funds from the line of credit. If you don't draw any funds, there is nothing to repay.\nBusiness lines of credit are available from banks, direct online lenders and even through the SBA, whose business line of credit program is called CAPLines. Business lines of credit are smaller than loans, generally maxing out at around $250,000. Many banks don't want to make small loans, so if you need $250,000 or less, a line of credit can be a good option. END
 TITLE: Business Loan or Business Line of Credit: Which Is Best for You? CONTENT: How Are Business Loans and Lines of Credit Different?\n-----------------------------------------------------\nBoth business loans and lines of credits can provide the capital your business needs, but there are some important differences between them.\nA business line of credit is revolving credit, allowing you to carry a balance that accrues interest. If you don't use the line of credit, you don't have to make any payments. Once you draw from the credit line, as long as you make the minimum payment each month, you can either pay your balance in full or pay whatever you can afford. (Just keep in mind that your unpaid balance will accrue interest.)\nA business loan is installment credit. You receive a lump sum and make fixed monthly payments on it. You must start repaying the loan right away, whether or not you use the money immediately.\nUnlike personal loans, most business loans are limited to specific uses. You can't use the proceeds of an equipment loan to pay your employees, for example. A business line of credit, however, can be used for any business purpose you choose.\nBusiness loans are generally available in larger amounts than business lines of credit. However, loans are more likely to require collateral and generally have stricter criteria for approval. END
 TITLE: Business Loan or Business Line of Credit: Which Is Best for You? CONTENT: Which Type of Financing Is Best for Your Business?\n--------------------------------------------------\nIs a business loan the right choice for your business, or would a business line of credit work better? The answer depends on several factors.\n*   **How much money do you need?** Lines of credit typically top out around $250,000, so if you need more than that, a business loan is a better option.\n*   **What will you use the money for?** If you have a specific purpose in mind, a loan designed for that purpose could be your best bet. If you'd like access to money with no restrictions on its use, you'll want to go for a business line of credit.\n*   **Do you want flexibility or predictability?** If you crave predictability, a business loan with set monthly payments and a fixed interest rate can make it easier to budget for your business. If you want flexibility, a business line of credit that lets you adjust your monthly payment could be the answer. But keep in mind that lines of credit are more likely to have variable interest rates, and if you miss a payment, your interest rate could rise.\n*   **How good are your business and personal credit scores?** Your creditworthiness will affect the amount of money you can borrow and the terms for which you'll qualify. Lower credit scores may make it harder to borrow larger amounts.\n*   **Do you need to build your business credit score?** Getting a business line of credit, using it and paying it down can help a new business build a business credit score—and that can help as your financing needs grow with your business. Just make sure that the lender reports to the three major business credit bureaus: Dun & Bradstreet, Experian and Equifax.\nIf you're not sure if a business loan or line of credit is the best choice, there are other options for financing your business. In the end, carefully considering your financial needs, business track record and long-term goals will help you determine what type of business financing is best for you. END
 TITLE: What Is the Best Term Length for a Personal Loan? CONTENT: How to Choose a Personal Loan Term Length\n-----------------------------------------\nA personal loan term length is the amount of time you have to pay back the loan. You can find personal loans with term lengths anywhere from 12 to 60 months and sometimes longer. A longer term length means lower monthly payments, but higher interest costs in the long run. To keep the cost of the loan down, you should look for the shortest loan term you can get while still keeping monthly payments manageable.\nThe term length isn't the only factor to consider when applying for a personal loan. You should also pay attention to these other factors:\n*   **Interest rate**: The interest rate of a personal loan is usually shown as an annual percentage rate (APR), which includes fees and other costs in addition to interest. A higher APR means the loan will cost you more, so it's advantageous to get the lowest interest rate you can find. Lenders typically publish APR ranges for personal loans online, making it easy to check out several different lender sites to compare. According to Experian data, as of Q2 2019, the average interest rate for a personal loan was 9.41%.\n*   **Fees**: In addition to interest, lenders typically charge fees when they issue a personal loan. These are either added to the loan balance or subtracted from what is disbursed to you; the cost of fees will be expressed in the APR.\n*   **Funding time**: How long will the loan approval process take, and once you're approved, how quickly can you get your money? It depends. Online lenders typically pay out very quickly, with some even offering same-day deposits. Banks and credit unions, however, take longer to approve and disburse loans, so you might have to wait a few weeks to complete the process.\n*   **Extras**: Look for special incentives lenders may offer or other ways to lower your interest rate or fees. Some lenders will give you a discount for applying online or setting up automatic payments, for example. Others will reduce your interest rate if your credit score rises or if you make on-time payments for a certain period. END
 TITLE: What Is the Best Term Length for a Personal Loan? CONTENT: How to Get a Personal Loan\n--------------------------\nYou can get personal loans from banks, credit unions and online lenders, but there are a few important differences among the three sources.\n*   **Banks** can be a good place to start when investigating personal loans, particularly if you already have a relationship with one. However, banks typically charge higher interest rates for personal loans than credit unions or online lenders; they also tend to have stricter credit standards. If you have good credit, and if being able to visit your lender in person or having the flexibility to make loan payments online, by check or in person is important to you, a bank can deliver.\n*   **Credit unions** are nonprofit financial institutions designed to serve certain members, such as teachers, association members or people who live in a certain area. They usually offer lower interest rates and less stringent credit requirements than banks, which can make it easier for those with less-than-perfect credit to get approved for a personal loan. You'll need to join a credit union before applying for a personal loan; this usually involves opening an account and depositing a minimum amount of money. Be aware that credit unions may not provide convenience features like a mobile app, and you might have to make your payments by check.\n*   **Online lenders** don't have physical branches you can visit. This means they can operate with less overhead than credit unions or banks and, in turn, may pass that savings onto borrowers in the form of lower interest rates on personal loans. Some online lenders cater to people with poor credit, which can be helpful if you've had trouble getting a personal loan elsewhere. Speed is another plus for online lenders—in some cases, you can apply for a personal loan online, get a decision and access your loan funds all in the same day. If borrowing money entirely online sounds risky to you, working with a well-established online lender can ease your fears. END
 TITLE: What Is the Best Term Length for a Personal Loan? CONTENT: What Credit Score Do You Need to Get a Personal Loan?\n-----------------------------------------------------\nBecause different lenders have different criteria for making personal loans, it is possible to get a personal loan with a lower credit score. However, having a FICO® Score☉ of 670 or higher will give you many more options, including more lenders to choose from, lower interest rates and better loan terms. If your credit is fair or poor, lenders will consider you a riskier borrower. You may still be able to get a personal loan, but you'll likely have to accept a higher interest rate and fees.\nIn addition to your credit score and credit history, lenders assessing your financial responsibility will also consider the amount of savings or other assets you have available, how stable your income is and how much of your income goes to debt (your debt-to-income ratio). If you have no savings and half of your income is going to pay off credit card debt, you'll be viewed as a bigger credit risk than someone who has a hefty savings account and little to no credit card debt.\nYou should check your credit score and review your credit report before applying for a personal loan. If you're worried that your score will keep you from getting a personal loan, here are some things you can do to improve your credit score:\n*   **Pay your bills on time.** This is the most important factor in your credit score, so mark your calendar—or better yet, set up automatic payments.\n*   **Reduce your credit utilization ratio.** This ratio, which measures the percentage of available credit you actually use, can start to harm your credit scores as it approaches or climbs above 30%. Limit your use of revolving credit, such as credit cards—the lower your ratio, the better it is for your scores. Maintain low balances or, better yet, pay the cards off in full each month.\n*   **Avoid applying for new credit cards.** Each application means a hard inquiry on your credit report, which can cause a temporary dip in your credit score.\n*   **Keep old credit accounts open, even if you aren't using them.** Having older accounts on your credit history shows you've been using credit for a long time, which helps improve your credit score.\n*   **Sign up for Experian Boost™† .** This free service reports your on-time cellphone and utility payments to Experian. Since these payments typically aren't reported to credit bureaus, adding them can help boost your credit score.\nOnce you get a personal loan, making your payments on time and in full will help maintain your positive credit score. END
 TITLE: What Is the Best Term Length for a Personal Loan? CONTENT: Finding the Right Personal Loan Term\n------------------------------------\nThe personal loan term length you choose can affect how much you'll pay each month and how much you'll pay in total interest over the life of the loan. However, term length isn't the only factor to consider when weighing different personal loans. The lender you choose, your debt-to-income ratio and your credit score can also have a big impact on how much your personal loan will cost. Checking your credit score, and improving it if necessary, before you apply for a personal loan can not only help you get the loan you need, but also get the best possible loan terms. END
 TITLE: How to Get a Used Car Loan CONTENT: Used Car Loans From a Bank or Credit Union\n------------------------------------------\nBefore you start shopping for a used car, it's a good idea to get preapproved for an auto loan from a bank or credit union. If you know what kind of car you want, use online resources such as Edmunds or Kelley Blue Book to research average costs. With a price range in mind, you can tell the lender how much you want to borrow.\nAfter the lender reviews your preliminary application, they'll tell you how much you can borrow and the interest rate they're likely to offer. This isn't a firm guarantee, but it gives you a good idea of how much a loan will cost you and makes it easier to negotiate with the dealer. A loan preapproval results in a soft inquiry on your credit report, which does not affect credit scores.\nBanks may be the first place you think of for getting a used car loan. But if you belong to a credit union, are new to credit or have fair to poor credit, there could be advantages to applying for a loan at a credit union instead.\n*   You may have a better chance of being approved for a loan. Credit unions are community-focused and smaller than many banks, so they take a more personal approach and are typically more understanding than banks if you have less-than-perfect credit or a limited credit history.\n*   Credit unions often offer better interest rates than a bank or auto dealership. Because they're nonprofit organizations, credit unions can afford to make loans at lower rates than banks or dealerships, which need to make a profit.\n*   You might find it easier to get a small loan. Banks and car dealerships typically have minimum loan amounts, but many credit unions don't—or if they do, the minimums are quite low.\nTo apply for a used car loan with a credit union, you'll need to be a member, which usually involves opening an account and making a deposit. Keep in mind that credit unions usually offer fewer conveniences than traditional banks; for example, you might have to make your loan payments by mail instead of online.\nBoth banks and credit unions may set maximum limits on the age or mileage of the car you're borrowing money to buy. This can be a problem if you're looking to finance an older used car. END
 TITLE: How to Get a Used Car Loan CONTENT: Used Car Loans From Car Dealers\n-------------------------------\nThe used car dealership where you buy your car could also help you finance it. You'll find three types of used car financing at auto dealerships.\n1.  Dealer-arranged financing: When you apply for a used auto loan at the dealership, the dealer will submit your application to multiple lenders to see which offers you the best deal (this is called \"rate shopping\"). In many cases, however, the dealer will increase the interest rate so they can make some money for arranging the loan.\n2.  Captive financing: Car manufacturers often own financing companies that make loans on the manufacturer's new or certified pre-owned vehicles. Although captive financing companies sometimes offer good deals, loans may be limited to certain makes or models, and the best financing terms (such as 0% APR) are usually reserved for new vehicles.\n3.  Buy here, pay here financing: Some used car dealers offer in-house financing. These buy here, pay here (BHPH) dealerships cater to customers with poor credit or no credit history. More lenient standards make it easier to get approved even if you've had trouble getting a loan elsewhere. On the downside, BHPH lenders usually charge very high interest rates and fees and require larger down payments than traditional dealers. END
 TITLE: How to Get a Used Car Loan CONTENT: Used Car Loans From Online Lenders\n----------------------------------\nOnline lenders work similarly to banks and credit unions, except that the loan application process takes place entirely online. Many online lenders specialize in certain types of loans, such as auto loans, or certain types of borrowers, such as people with fair to poor credit. You'll start by getting prequalified with the online lender; once you're prequalified, you can submit an official loan application.\nUsing an online lending platform to find a used car loan has some advantages. You can get prequalified quickly and compare loans from several online lenders much faster than you could with traditional banks. You can also get approved and receive your loan funds in just a few days. But there are disadvantages too. Online loans may not offer terms as good as your bank or credit union, and if you prefer talking to lenders face-to-face, an online lender isn't the best option for you. END
 TITLE: How to Get a Used Car Loan CONTENT: Shop Around for Used Car Loans\n------------------------------\nAs with any other type of loan, you should shop around for used car loans to get the best rates and terms. It's worth the effort, because comparison shopping can save you thousands of dollars over the life of the loan.\nStart by checking your credit score. A fair or poor credit score doesn't mean you can't get a loan—according to Experian data, in Q4 2019, the average credit score of people getting used car loans was 661. However, improving your score before you apply for a loan can help you qualify for a lower interest rate.\nWill shopping around for used car loans and submitting multiple applications negatively affect your credit? Not if you handle it right. Most credit scoring models count multiple car loan inquiries as one inquiry as long as they are all made within a certain period of time—usually within 14 days, but sometimes longer depending on the scoring model. (Each inquiry will still show up separately on your credit report, however.) A hard inquiry can take a few points off your credit score, but the effect will disappear in about a year. END
 TITLE: How to Get a Used Car Loan CONTENT: What to Look for When Comparing Used Car Loans\n----------------------------------------------\nWhen you're comparing used car loans, there are several factors you should consider to find the best loan.\n*   **Down payment**: The larger the down payment you can make on the car, the less you'll need to borrow, and the less interest you'll pay over the term of the loan.\n*   **APR**: The annual percentage rate (APR) of an auto loan incorporates both the interest rate and any loan fees the lender charges. Assuming the down payment and loan terms are equal, comparing APRs is a good way to weigh the relative cost of different loans.\n*   **Term**: This refers to how many months it will take you to repay the loan. New car loan terms generally start at 36 months and go as long as 72 or even 84 months. Because used car loan amounts are typically smaller, the terms are usually shorter. Still, in 2019 the average used car loan term was about 65 months, according to Experian data. A longer term means a lower monthly payment, but also means you'll pay more in total interest over the life of the loan.\n*   **Monthly payment**: This is the amount you agree to pay the lender each month until the loan is paid off. The payment is the same every month and includes both principal and interest.\nUsed car loans often have higher interest rates than new car loans. In the last quarter of 2019, the average interest rate for a new car loan was 5.76%; for a used car, it was 9.49%, according to Experian data. The older the car is, the higher the interest rate is likely to rise.\nTaking a shorter loan term can somewhat offset the higher interest rate of used car loans, but it will cause your monthly payment to rise. For example, if you took out a 36-month used car loan at 9.49% APR, you'd pay $1,530.18 in total interest. If the same loan were stretched out to 60 months, however, you'd pay $2,598.18 in total interest. Choosing the shorter term would save you over $1,000. END
 TITLE: How to Get a Used Car Loan CONTENT: Choosing the Right Used Car Loan\n--------------------------------\nWhen you're looking for a used car loan, don't rush the process. Check your credit score before you apply for a loan and take steps to boost your score if necessary. Once your credit score is where you want it to be, shop around to see which lender offers the best interest rate, loan term and monthly payment for your needs. Buying a used car can be a smart way to save money—and taking a little time to find the most favorable loan terms can save you even more. END
 TITLE: How to Pay for Grad School CONTENT: Start Saving For Grad School as Soon as Possible\n------------------------------------------------\nOn average, 24% of graduate school costs are paid by students' savings or earnings, according to data from student loan provider Sallie Mae. The earlier you begin to save money for graduate school, the better prepared you'll be to foot the bill. As soon as you've made the decision to go to graduate school, start thinking about how you can budget for the costs.\nExamining your current income and expenses will help you identify places where you can cut back on your spending to sock away money for graduate school. Making a budget can help you stay on track to reach your savings goals—plus, it's an essential life skill you'll use long after you earn your degree. END
 TITLE: How to Pay for Grad School CONTENT: Formulate a Plan and Know How Much You'll Pay\n---------------------------------------------\nThe cost of graduate school can vary widely depending on the type of program you choose, whether you plan to attend a public or private school, and whether the school is in your home state. For 2019-20, The College Board reports, average tuition and fees for a master's degree at a public four-year college was $8,990; at a private four-year college, it was $31,140.\nChoosing your graduate program wisely can help you keep costs down while still providing a solid education. As you look at schools and programs, it's a good idea to run through your own cost-benefit analysis and ask yourself the following questions:\n*   How may a graduate degree affect your future earnings in the field you plan to enter?\n*   Will the job you want be in demand once you're done with your degree?\n*   How well does a particular school prepare its graduates to find jobs?\n*   What is the value of a school's reputation or the connections you can make there?\n*   What do recent graduates have to say about the value of their degree?\nRemember to include the estimated cost of rent, transportation, food, textbooks and other expenses when comparing the costs of various graduate programs. Each school should provide an estimated cost of attending that takes these expenses into account. END
 TITLE: How to Pay for Grad School CONTENT: See if You Qualify for Federal Student Loans\n--------------------------------------------\nAccording to recent data from Sallie Mae, 77% of graduate students paid for school, at least in part, by borrowing. If you expect you'll need help covering the costs of your education, start by seeing if you qualify for federal student loans. Unlike private student loans, federal loans have uniform interest rates, terms and conditions. They also have more flexible payment options, such as the potential for loan forgiveness or the ability to defer payments in case of financial hardship.\nTo be considered for federal student loans, you'll need to complete and submit the Free Application for Federal Student Aid (FAFSA). You must also meet certain criteria, including being a U.S. citizen or eligible non-citizen, having a Social Security number and being enrolled at least half-time in an eligible degree program. Federal student loans for graduate students include:\n*   **Federal direct unsubsidized loans**: Interest on unsubsidized loans accrues while you are attending school, but you don't have to begin to repay your loans until after you leave school. You can choose to repay the interest during school, but if you don't, it is added to your principal when you graduate and begin repaying the loan. You can borrow up to $20,500 annually.\n*   **Federal direct graduate PLUS loans**: If you need to borrow more than the maximum available through a federal direct unsubsidized loan, you can apply for a PLUS loan. Unlike federal direct unsubsidized loans, these require a credit check. However, the credit check doesn't consider your credit score; it simply looks for any adverse credit history. You can borrow up to the cost of attendance (as determined by the school) minus any other financial aid you're receiving.\n*   **School-funded aid**: Many schools offer assistance with graduate school costs. Check with the schools and degree programs you're considering to see what types of student loans or financial aid are available.\n*   **State aid**: Your state may have graduate student aid or loan programs. Visit the U.S. Department of Education website for links to resources for your state. END
 TITLE: How to Pay for Grad School CONTENT: Look Into Private Student Loans\n-------------------------------\nPrivate student loans, available through banks and credit unions, are another way to pay for graduate school. Unlike federal student loans, private student loans take your creditworthiness into account, so the higher your credit score, the better chance you have of getting approved at a lower interest rate. If you're considering getting a private student loan, be sure to check your credit report and credit score to get an idea of the types of loan terms you may qualify for.\nWhile federal student loans follow standardized guidelines, every private lender sets its own rules and terms. Repayment terms, loan limits and interest rates will vary depending on your lender. The interest rates you'll pay on your loans may be fixed or variable, and some lenders may even grant you a lower interest rate than you'd get from the government. Private student loans, however, aren't eligible for forgiveness or income-driven repayment plans available for federal student loans, so be sure you fully understand the costs involved in a private student loan before you agree to borrow. END
 TITLE: How to Pay for Grad School CONTENT: Research Fellowships, Assistantships and Scholarships\n-----------------------------------------------------\nBorrowing money isn't the only way to pay for graduate school. Many private and public universities offer research and teaching assistantships for graduate students. You'll assist a professor by teaching classes or conducting research in exchange for tuition reimbursement and an annual living stipend. In addition to helping you finance your degree, these part-time positions can also provide valuable experience in your chosen field.\nThere are even ways to secure money you don't have to work for or pay back that will help you pay for school. Think that sounds too good to be true? Many of the schools on your list likely offer grants, fellowships or scholarships. As you might expect, fellowships, scholarships and grants are highly competitive, so start your research and application process early. If you've found the assistance opportunities offered through your school lacking, do some research online and apply for additional graduate school fellowships and scholarships from other organizations. END
 TITLE: How to Pay for Grad School CONTENT: Consider a Part-Time Job\n------------------------\nDepending on your financial needs and how much time you have available, you may want to consider getting a part-time job during grad school. The income could either help pay for your graduate school costs directly or cover the interest on your federal direct unsubsidized loan during school, so you don't have to pay deferred interest after you graduate.\nPaying for graduate school may seem overwhelming at first, but in reality, there are many resources that can help you cover the costs. Plan ahead, start saving early and research all your options, and you'll discover it's easier than you think to finance your graduate degree. END
 TITLE: Can I Get a Car Loan With a 600 Credit Score? CONTENT: Is 600 a Good Credit Score?\n---------------------------\nJust how good (or bad) is a 600 credit score? Credit scores typically fall within a range of 300 to 850. Higher credit scores tell lenders that you have a history of responsibly managing your credit and debt. Lower credit scores can indicate that you pose more of a borrowing risk, which may cause a lender to charge higher loan interest rates.\nThere are dozens of credit scoring models, and each one uses slightly different criteria to calculate your credit score. This means what is considered \"good\" can vary from model to model. In the FICO® Score☉ model, for example, a credit score of 600 is considered \"fair.\" In the VantageScore® 3.0 model, a credit score of 600 is considered \"poor.\" Both models use a range of 300 to 850, and a 600 credit score with either model is below what lenders tend to view as good credit. END
 TITLE: Can I Get a Car Loan With a 600 Credit Score? CONTENT: What Credit Score Do You Need to Get an Auto Loan?\n--------------------------------------------------\nThe credit score you need to get a car loan isn't set in stone. That's because auto lenders can use any credit scoring model they choose when assessing your creditworthiness. They might use a version of the FICO® Score, a VantageScore or a specialized score such as the FICO® Auto Score. Designed specifically for auto lenders, this score more heavily weights the credit behaviors auto loan issuers are concerned about.\nThe credit score required to qualify for a car loan will also vary depending on the specific lender's tolerance for risk, how much money you want to borrow and perhaps even the vehicle you're buying. For example, some lenders cater to borrowers with less-than-perfect credit, while others have much stricter standards. You may be able to get a smaller auto loan with a lower credit score, but have more difficulty getting a larger one.\nYour credit score isn't the sole factor that lenders will assess when reviewing your loan application, either. Your credit report, employment history and debt-to-income ratio all could play a role, and potentially help compensate for your 600 credit score.\nBut no matter which credit scoring model your chosen lender uses and what other factors they consider, having a poor credit score generally makes it more difficult to get a car loan. For example, you may need to make a bigger down payment to shrink your loan amount and reduce the lender's risk. If you do get approved for an auto loan despite a lower credit score, your loan will probably have a higher interest rate than it would if you had a good credit score. A higher interest rate could add thousands of dollars to the cost of your car over the life of the loan, so it definitely pays to get it as low as possible. END
 TITLE: Can I Get a Car Loan With a 600 Credit Score? CONTENT: Check Your Credit Report Before Applying for an Auto Loan\n---------------------------------------------------------\nBefore accepting your loan application and setting loan terms, auto lenders will take a close look at your credit report. They'll be on the lookout for red flags such as late payments, high credit card balances, account default, bankruptcy and foreclosure. These warning signs could indicate you'll have problems repaying your loan.\nTo keep such unpleasant surprises from derailing your loan application, it's a good idea to check your credit report a month or two before you apply for an auto loan. Get a free copy of your credit report and review it to make sure all the information is accurate, including your personal data, account information and inquiries into your credit. If you see anything that's incorrect or looks suspicious—for example, if a credit card that you never applied for recently checked your credit report—contact the credit bureau to dispute the information and have it corrected before you apply for your car loan. END
 TITLE: Can I Get a Car Loan With a 600 Credit Score? CONTENT: How to Improve Your Credit Score Before Applying for an Auto Loan\n-----------------------------------------------------------------\nYou may not know which credit scoring model an auto lender will use when reviewing your application, but they all tend to reflect credit behavior in similar ways. Checking your credit scores as well as your credit report will give you a sense of whether lenders will view you as a good borrower or a credit risk. If you discover that your score is 600 or lower, and have some time, take these steps to improve your credit score before you apply for a car loan.\n*   **Bring any late accounts current right away.** Going forward, make sure to pay all your bills on time. If you tend to forget due dates, set up automatic payments to help you stay on track. Payment history accounts for about 35% of your FICO® Score.\n*   **Pay down existing debt.** Your credit utilization ratio reflects how much of the credit available to you you're actually using. Aim to get this ratio to 30% or less, but the lower, the better. Keep your credit card use to a minimum and pay off your balances in full every month.\n*   **If you pay off a credit card, don't close the account.** Keep it open, even if you don't plan to use it in the future. This can help to reduce your credit utilization ratio, increase the length of your credit history and improve your credit mix, all of which contribute to a good credit score.\n*   **Don't apply for new credit.** Every application for credit creates a hard inquiry on your credit report. Hard inquiries on your credit report negatively affect your scores slightly, but will drop out of your score calculations after a year.\n*   **Sign up for Experian Boost™† .** This free service adds your on-time phone, utility and similar payments to your Experian credit history. These payments aren't normally included on your credit report, but including them can help to raise your credit score.\n*   **Monitor your credit****.** Keeping a close eye on your credit can help you spot any issues before they start to drag down your scores. Experian's free credit monitoring services can alert you if you start charging too much on your credit card or if you've potentially been defrauded.\nGet the Best Car Loan\n---------------------\nNo matter what your credit score is, shopping around for a car loan and comparing what each lender has to offer is a smart move. Knowing your credit score before you start researching makes it easier to narrow down the types of loans you may qualify for. A credit score of 600 won't necessarily keep you from getting an auto loan, but it's likely to make that loan more expensive. Taking steps to improve your score before you apply for a car loan can put you in the driver's seat and make it easier to negotiate the best possible loan terms. END
 TITLE: Can I Get a Car Loan With a 600 Credit Score? CONTENT: Get the Best Car Loan\n---------------------\nNo matter what your credit score is, shopping around for a car loan and comparing what each lender has to offer is a smart move. Knowing your credit score before you start researching makes it easier to narrow down the types of loans you may qualify for. A credit score of 600 won't necessarily keep you from getting an auto loan, but it's likely to make that loan more expensive. Taking steps to improve your score before you apply for a car loan can put you in the driver's seat and make it easier to negotiate the best possible loan terms. END
 TITLE: How to Get a Small Loan With No Credit CONTENT: Why Don't I Have a Credit Score?\n--------------------------------\nNot having a credit score doesn't necessarily mean you have bad credit. It simply means the credit bureaus don't have enough information about your credit history for a credit score to be assigned. Perhaps you don't have any credit accounts, or you only have one or two and are deemed to have a thin credit file. Common reasons you might not have a credit score include:\n*   **You've never used traditional credit accounts.** Credit reports keep track of your interactions with credit and debt. If you've never taken out any type of loan and have never had a credit card, you won't have a credit history that scoring models can assess.\n*   **You haven't used credit within the past 24 months.** Credit bureaus need to see activity on your credit accounts to generate a score. Ensure your accounts remain active by using each of your credit cards occasionally and paying the bill on time.\n*   **You're a recent immigrant.** You may have had an excellent credit score in your home country—but unfortunately, that score won't transfer to the United States. You'll need to start from scratch when building your credit history as a recent immigrant. END
 TITLE: How to Get a Small Loan With No Credit CONTENT: Can I Get a Small Loan if I Don't Have Credit?\n----------------------------------------------\nMost small loans are personal loans. As of Q2 2019, the majority of personal loans were for amounts under $20,000, according to Experian data. You can generally get personal loans for as little as $1,000.\nWhile auto loans and mortgage loans are designed for specific purchases, a personal loan can be used for just about anything you want. Unlike a car loan or mortgage loan, which uses the car or house itself as collateral, personal loans are usually _unsecured_, meaning you don't have to put up any collateral. This makes your credit score even more important.\nAlthough you may be able to get a personal loan with no credit, lenders will probably charge you higher interest rates than they would if your credit was good. How can you prove that you're creditworthy without having a credit score? Look for lenders that consider other factors not included in your credit report, such as your employment history, income (from pay stubs or tax returns), bank account balances and debt-to-income ratio.\nIt's often easier to get a personal loan from a credit union than from a bank. Because educating and supporting members in managing their finances is part of a credit union's mission, credit unions tend to be more flexible about their loan criteria. To apply for a credit union loan, you need to join the credit union, generally by opening an account and making a deposit. END
 TITLE: How to Get a Small Loan With No Credit CONTENT: Where to Apply for Small Personal Loans\n---------------------------------------\nYou can apply for small personal loans at banks, credit unions or online. Begin by investigating which lenders offer personal loans with small minimum amounts. You may want to start with your current bank or a credit union you belong to. Experian's CreditMatch™ tool can help you find prospective sources of personal loans.\nOnce you narrow down your options, it's time to apply. You may have to make a call or pay the lender an in-person visit at some point in the process, but most lenders let you at least start the application process online and get prequalified for a loan that way. Prequalification provides you with estimated loan amounts, costs and terms you can use to compare lenders and doesn't affect your credit score. Some lenders don't require a credit check or they'll use alternative data to help them determine your loan eligibility. Once you find a lender you like, you can move ahead with the application process.\nYou'll need to provide personal data (name, address, birthdate and Social Security number) to apply for a loan. You may also have to submit tax returns, pay stubs, bank account numbers and other personal financial information to help a lender understand your income and existing debt obligations. Different lenders also might consider additional factors; for example, online lender Upstart also considers alternative data including your standardized test scores, which college you attend\/attended, your major and your grade point average.\nWhen comparing personal loans, look at the following factors:\n*   **Interest rate**: Lenders express interest rates as an APR that includes interest, fees and other costs. Most lenders provide a range for their current loan APRs; just keep in mind that with no credit, you're likely to be charged at the higher end of that range.\n*   **Loan terms**: Personal loans are short-term loans and generally must be repaid within 12 to 60 months.\n*   **Fees and other charges**: Find out if origination fees and other costs will be taken out of your loan proceeds and if there is a prepayment penalty for paying the loan back early.\nYou can use Experian's Personal Loan Calculator to compare different loan terms and costs, calculate your monthly payment and decide which loan is best for you. END
 TITLE: How to Get a Small Loan With No Credit CONTENT: How to Establish Credit if You Have No Credit History\n-----------------------------------------------------\nEven if you are able to secure a small loan with no credit, it's extremely important to establish and build a credit history. Down the road, you'll likely want to apply for more credit to accomplish other life goals, such as buying a car or a house. Having a credit history will make it easier to get approved for these loans. Try these tips to establish credit for the first time.\n*   **Apply for a secured credit card.** A secured credit card is \"secured\" by a refundable security deposit. You can make charges up to the amount of your deposit (minus any fees). Secured credit cards are designed to help people establish or improve their credit. Because the credit card issuer can tap into your deposit if you can't pay your balance, they will feel confident extending credit even if you don't have a credit history. Before applying for a secured credit card, make sure it will report your payments to the national credit bureaus. Build your credit by using the card sparingly each month, paying your bill on time and making sure your credit utilization doesn't climb too high (aim to keep it below 30%, but lower is better).\n*   **Become an authorized user.** Another option is to get added to a family member's credit card account as an authorized user. The account holder is ultimately responsible for the charges, but by using the credit card for small purchases and paying it off each month, you can improve your credit score. For best results, make sure the primary cardholder always makes on-time payments, has had the account open for a long time and doesn't carry a high balance.\n*   **Monitor your credit score and report.** To see if your credit-building efforts are working, get a free credit report and watch as your on-time payments start to flesh out your file. It takes about six months for your FICO® Score☉ to be calculated; at that point, check your credit score to see where it stands. END
 TITLE: How to Get a Small Loan With No Credit CONTENT: Alternatives to Small Loans When You Don't Have Credit\n------------------------------------------------------\nIf you don't have a credit history, applying for a personal loan isn't your only option. Here are some other alternatives for getting the money you need.\n*   **See if someone will cosign on a loan with you.** Persuading a friend or family member to cosign on a loan could be the answer to your problem. The cosigner promises to pay the loan back if you fail to do so. You'll need a cosigner with a good credit score to make up for your lack of credit. Just be sure you pay the loan back, or you risk damaging credit scores for both you and your cosigner (as well as your relationship with them).\n*   **Consider borrowing money from friends or family members.** Is a friend or family member willing to lend you money? Write up an official loan document and pay back the loan back on time. Be sure the person can afford to lend you the money—and can afford to lose it if you can't repay the loan.\n*   **Look to nonprofit programs for help.** Are you in the military or a family member of someone who is? If so, you might qualify for assistance from a military aid society. The Army Emergency Relief, Navy-Marine Corps Relief Society, Air Force Aid Society and Coast Guard Mutual Assistance offer service members in need grants and interest-free loans. If you're not affiliated with the military, local community service agencies and charitable organizations sometimes provide loans or financial assistance.\n*   **Ask your employer for a cash advance.** Not to be confused with a payday loan, a _paycheck advance_ is a cash advance from your employer that is repaid through deductions from future paychecks. Some employers offer this service, often through third-party lending companies. Generally, all employees are eligible for the same interest rates and loan terms no matter what their credit score. Bonus: If the third-party company your employer uses reports to the major credit bureaus, repaying your paycheck advance can help improve your credit score. Just make sure you understand the interest, fees and repayment terms. END
 TITLE: How to Get a Small Loan With No Credit CONTENT: Getting Money With No Credit\n----------------------------\nEven if you don't have a credit history, there are ways to get a small loan to cover sudden financial needs. The key is to look for lenders that focus less on your credit score and more on other factors, like your income or your job. But even if you do get a loan, not having credit may mean paying higher-than-normal interest and accepting unfavorable terms. By monitoring your credit report and taking steps to build your credit history (including paying off that small loan), you can help ensure future loans are easier to get. END
 TITLE: How to Buy Points on a VA Loan CONTENT: How Does Buying Down Points on a VA Loan Work?\n----------------------------------------------\nA VA loan is a specialized mortgage loan that's guaranteed by the U.S. Department of Veterans Affairs. This means that the lender is protected if the borrower can't make their monthly payments.\nVA loans have strict eligibility requirements, effectively making them available only to select members of the military community.\nIt's possible to purchase discount points on a VA loan, which is essentially the same as paying prepaid interest. In exchange for an upfront payment at closing, the lender will reduce the interest rate on your loan.\nFor the most part, the process is similar to buying points on a conventional loan. However, there are some differences, depending on the type of loan you choose:\n*   If you're buying a home, you can't roll your points into the loan.\n*   The seller is allowed to pay up to 4% of the loan amount toward your closing costs, which doesn't include discount points, but it could free up some cash for you to buy them.\n*   With a VA interest rate reduction refinance loan (IRRRL), you can roll the cost of up to two discount points into the loan, but your total loan fees must be recouped in 36 months or less to qualify.\n*   If you want a VA cash-out refinance, you can roll closing costs, including discount points, into your loan as long as the loan-to-value ratio doesn't exceed 90%. Also, your break-even point on closing costs must be 36 months or less.\nIf you're thinking of getting a VA loan and want to understand your options with buying points, speak with your lender to get information specific to your situation. END
 TITLE: How to Buy Points on a VA Loan CONTENT: How to Calculate VA Mortgage Points\n-----------------------------------\nThe cost of a discount point is typically 1% of the loan amount, and it buys down the rate by 0.25%. So, let's say you have a $300,000 loan with a 3.5% fixed interest rate. With a 30-year mortgage, your monthly payment would be $1,347.\nNow, if you wanted to purchase one point, it'd cost you $3,000, and it would reduce your rate to 3.25%. To find out if it's worth it, you'd need to determine the monthly payment at the lower interest rate, which is $1,306. Then, you'd divide the cost of the point by the difference between the monthly payments.\nIn this scenario, that would be $3,000 divided by $41, which gives you a break-even point of about 73 months. In other words, you'd need to remain in the home and not refinance for a little more than six years to make buying the point worth it.\nNow, let's say you only want to purchase half a point. That would cost you $1,500, and it would reduce your rate to 3.375%. The difference in monthly payments with this option would be $21, and your break-even point would be about 71½ months. END
 TITLE: How to Buy Points on a VA Loan CONTENT: When Does It Make Sense to Buy Down Points on a VA Loan?\n--------------------------------------------------------\nThe break-even point is a good place to start when deciding if you should buy discount points on your VA loan. However, there are also other factors to consider to determine if it makes sense for you:\n*   You can get a concession from the seller to pay for some of your closing costs to help you afford discount points.\n*   You can afford to pay the cost upfront on a purchase loan.\n*   You plan to stay in the home long enough to reach the break-even point.\n*   On a refinance loan, your loan terms satisfy the requirements of the government agency.\nOn the flip side, buying VA loan points may be a bad decision if:\n*   You can't afford to make the upfront payment.\n*   You're not planning on staying in the home long enough.\n*   Your refinance loan terms don't meet the VA's requirements.\n*   Interest rates are already low, and the potential savings aren't worth it to you.\nAs with any financial decision, it's crucial that you take the time to consider your options, including their pros and cons, to ensure that you make the right decision. END
 TITLE: How to Buy Points on a VA Loan CONTENT: How to Buy VA Mortgage Points\n-----------------------------\nYou can typically purchase VA mortgage points from your loan provider. Limits can vary based on what the lender offers, as well as limits in place by the VA. As you go through the mortgage process, speak with your loan officer or broker about purchasing discount points, and ask them to provide you with the cost and savings, so you can calculate the break-even point.\nIf you're on the fence about buying VA loan points, here are some alternatives that could help reduce your interest costs:\n*   Talk to your lender about making semi-monthly payments to limit the impact of compounding interest.\n*   Make extra payments each month toward your principal loan amount (though take note of prepayment penalties if the lender charges them).\n*   Apply for a loan with a shorter term—a 20-year or 15-year loan will give you a higher monthly payment, but if you can afford it, it'll result in less total interest.\nAgain, take your time to research each option and speak with your lender to get as much information as possible to make a decision. END
 TITLE: How to Buy Points on a VA Loan CONTENT: Building Credit Can Help You Maximize Savings\n---------------------------------------------\nBuying discount points on a VA loan can help drive down the cost of your monthly payment, but that comes at the cost of an upfront payment at closing. In addition to shopping around to find the best rate, it's important to make sure your credit history is in good shape before you apply for a mortgage.\nEstablishing an excellent credit score will give you access to lower interest rates because it shows that you're a responsible borrower and a low risk of default.\nCheck your credit score to see where you stand and review your credit report to get an idea of whether you need to address any issues. If your credit file needs some work, take the time to do it before you apply. This process can take time, but the savings can be in the thousands or even tens of thousands of dollars over the life of the loan. END
 TITLE: What Is the Average Price for a New Car? CONTENT: Average New Car Price by Vehicle Segment\n----------------------------------------\nDepending on the type of vehicle you want to buy, the average price can vary greatly. Here are the averages by segment, according to KBB's analysis.\nSource: Kelley Blue Book END
 TITLE: What Is the Average Price for a New Car? CONTENT: You'll also find big price differences based on the vehicle's manufacturer. Some brands market more budget-friendly models while others are more luxury-focused. Here's how KBB breaks down the average new car price for the top nine manufacturers and their makes.\nSource: Kelley Blue Book END
 TITLE: What Is the Average Price for a New Car? CONTENT: Average Auto Loan Rates by Credit Score\n---------------------------------------\nRoughly 86% of new vehicles are financed, according to Experian's State of the Automotive Finance Market report for the second quarter of 2020, compared with just 37% of used vehicles. If you're planning on taking out an auto loan to purchase your next vehicle, it's important to understand how much it's going to cost.\nAuto loan rates vary by credit score, so it's important to know where your credit stands to get an idea of the cost of financing. Overall, the average rate on a new car loan is 5.15%, according to Experian data. Here's how that breaks down based on credit score range:\nSource: Experian\nKeep in mind that some manufacturers offer 0% APR financing on some of their new models, but you'll typically need stellar credit to qualify for one of these promotions.\nRegardless of what your credit score looks like right now, take some time to get your credit ready to buy a car by checking your score, reviewing your credit report and addressing potential issues that could make it difficult to get approved for favorable terms. END
 TITLE: What Is the Average Price for a New Car? CONTENT: Decide if a New Car Makes Sense for You\n---------------------------------------\nBuying a brand-new car can be an exciting prospect, especially if you've only ever driven used vehicles. However, it's a good idea to take some time to consider both the benefits and drawbacks of a new car before you start shopping around. END
 TITLE: What Is the Average Price for a New Car? CONTENT: How to Buy a New Car\n--------------------\nIf you've done your research and decided that buying a new car is the best option for you, here are some tips on how to go through the process and maximize your savings.\n*   **Know your budget.** Remember, new cars are more expensive than comparable used ones, so you'll want to check your budget to determine what you can afford. Dealers may try to focus your attention on the monthly payment, and get you into a more expensive car by extending the length of loan term. You'll want to consider the sales price and the total cost after finance charges, as well as the total amount of interest you'll pay over the course of the loan. A longer loan term may, in fact, lower your monthly payment, but it could cause you to pay thousands more in interest over time if it means paying off your loan for an extra one, two or even three years.\n*   **Shop around for auto loans.** Dealers can arrange financing, and if you qualify for a 0% APR promotion, that may be your best bet. But it's still a good idea to shop around for an auto loan before you head to the dealership. Checking with three to five lenders, such as the financial institution you already bank with, will not only give you an idea of what you can expect with rates but also potentially give you some negotiating power with the lenders the dealer uses. Securing financing on your own before you go into the dealer will give you a hard price limit, which provides even greater negotiating power.\n*   **Do your research on models.** Take some time to research new cars online in your area to understand what the prices are and whether some dealers are offering promotions, such as 0% APR financing or rebates. Depending on what you can find, doing a little legwork could save you hundreds or even thousands of dollars.\n*   **Negotiate with the dealer.** Depending on the situation, there might not be a lot of wiggle room in the price of a new car, but it doesn't hurt to try. You can potentially gain some leverage by visiting the dealership at the end of the month or quarter when salespeople are scrambling to meet sales quotas. Doing your research before you head to the dealership will also help you because you'll have offers from other dealers on hand to compare.\nIf you're in a time crunch, you might not have a lot of time to go through these steps, but doing at least a little of each could make a difference in your costs. Ideally, you'll start shopping for a new car when you don't necessarily need one, so you'll be able to walk away from deals more easily and wait for the right one. END
 TITLE: What Is the Average Price for a New Car? CONTENT: Maintain Good Credit After Your New Car Purchase\n------------------------------------------------\nGetting your credit ready for a vehicle purchase is an important way to improve your odds of getting a low interest rate. Once you close the deal, though, continue improving your credit score or maintaining it if it's already in excellent shape.\nExperian's credit monitoring tool can help you stay on top of your credit by providing free access to your FICO® Score☉ powered by Experian data and your Experian credit report. You'll also get real-time updates when information is added to your credit report, including new accounts, credit inquiries and new personal information.\nIf your credit still needs some work, monitoring and working to improve your score may give you an opportunity to refinance your auto loan in the future. It can also help set you up for better financing in the future. And if your credit profile is already in good standing, monitoring it can help you keep it that way. END
 TITLE: Can You Lease a Used Car? CONTENT: How Used Car Leasing Works\n--------------------------\nMost used cars that are available for lease are certified pre-owned (CPO) vehicles that are less than four years old and have fewer than 48,000 miles. If you lease a used car, you'll pick out your car, get approved by the lender, agree to the payment and terms, and fill out some paperwork. Over the life of your used car lease, you'll pay the difference between the car's sales prices and its residual value, which is what it will be worth at the end of the lease based on depreciation. END
 TITLE: Can You Lease a Used Car? CONTENT: What to Consider When Leasing a Used Car\n----------------------------------------\nBefore leasing a used car, it's important to consider the following benefits and downsides.\n### Benefits of Leasing a Used Vehicle\n*   **Lower monthly payments**: When you lease a used car, you'll likely have lower payments than you would if you purchased the same car used or got it new by buying it or leasing it.\n*   **Lower car insurance costs**: Since car insurance rates depend on the value of a car, you may be able to save on car insurance by leasing used.\n*   **The chance to drive a luxury car**: Luxury cars are expensive when you buy or lease them new. If you lease a used car, you may be able to afford driving a luxury vehicle.\n### Downsides of Leasing a Pre-Owned Car\n*   **Outdated technology and features**: If you lease a pre-owned car, it may not have the latest and greatest tech and safety features seen on newer vehicles.\n*   **Expensive maintenance**: As vehicles age, their maintenance costs increase. You may be forced to pay for expensive maintenance out of pocket.\n*   **Mileage restrictions**: Leasing a used car comes with restrictions on how many miles you can drive each year. This may be an issue if you drive frequently or often travel far distances. If you go over the mileage limit, you may have to pay an excess mileage penalty. END
 TITLE: Can You Lease a Used Car? CONTENT: Credit Score Required to Lease a Used Car\n-----------------------------------------\nMost auto leasing companies look for FICO® Scores☉ of 700 or better when deciding whether to approve someone for a lease. If your score is below 700, you may have a difficult time securing a lease. In the event you do get turned down for a used car lease because of your credit, focus on improving it to increase your chances of approval the next time you apply. Avoid late or missed payments, pay down high credit balances, and don't open new credit accounts unless you really need them. END
 TITLE: Can You Lease a Used Car? CONTENT: How to Lease a Used Vehicle\n---------------------------\nHere's a brief overview of what you'll need to do if you'd like to lease a used car.\n1.  **Check your credit score**: Find out whether your credit score is high enough for you to get approved for a used car lease. If it's not, spend some time improving it.\n2.  **Find a dealer**: Not all car dealerships offer used car leases. Call around to find out which ones in your area do lease used cars to customers.\n3.  **Negotiate**: Do your research on used car values to help you negotiate a good deal. Keep in mind that just because you're leasing a used car doesn't mean a dealer won't try to overcharge you.\n4.  **Get a warranty**: Since leasing a used car means there is a higher chance that the car will have problems down the road, consider investing in an extended warranty. It can save you a great deal of money on maintenance and repairs.\n5.  **Insure the lease**: You'll need to insure your used car lease before you can drive your vehicle. Shop around to find the best rate on a car insurance policy.\n6.  **Make timely payments**: By making timely payments on your lease, you can build your credit and avoid financial issues. END
 TITLE: Can You Lease a Used Car? CONTENT: Alternatives to Leasing a Used Car\n----------------------------------\nIf you decide leasing a used car isn't right for you, consider these alternatives.\n*   **Try a used car subscription service**: A used car subscription service can give you access to a variety of vehicles for a flat fee. This can offer you more flexibility than a traditional lease. You'll have more vehicle choices and can swap out the car you choose for a different one at any time.\n*   **Swap a lease**: When you swap a lease, an auto lease gets transferred to you from another driver, and you take over the same payments and terms as the previous driver. Swapping a lease can give you a feel for whether a certain car suits your needs before you take out a new lease.\n*   **Buy a used car**: If you buy a used car, you may be able to save money in the long run. Also, you can sell or trade in your car whenever you'd like.\nBefore leasing a used car, be sure to consider the pros and cons of doing so and determine whether an alternative option makes more sense for your particular situation. END
 TITLE: Are 84-Month Auto Loans a Good Idea? CONTENT: When an 84-Month Car Loan Might Make Sense\n------------------------------------------\nStretching out your repayment schedule over seven years can lower your monthly car payments significantly compared with, say, a three-year or even five-year loan. This can allow you to buy a car that might not otherwise fit your budget (more on that below).\nThere are a couple scenarios where an 84-month auto loan _might_ make sense:\n*   **If you invest the money you'll save**: If taking out a seven-year auto loan saves you $396 a month on your payments compared with a three-year loan (as in the example below), you could put that $396 into an investment whose rate of return outweighs the amount of interest you're paying on the loan. But will you really do that—for seven years? And if you have an extra $396 a month to invest, is keeping your car payment low really a concern?\n*   **If you plan to pay down other high interest debt**: If you have $10,000 worth of high interest credit card debt, taking out a seven-year car loan would give you more money to put toward your credit card bill each month. However, you'll have even more money to pay down your credit card debt if you don't buy the car at all or buy a much less costly one (that you could ideally pay for in cash). If you're already having trouble with credit, taking out a new loan probably isn't a wise move. END
 TITLE: Are 84-Month Auto Loans a Good Idea? CONTENT: Reasons an 84-Month Auto Loan Might Not Be the Best Idea\n--------------------------------------------------------\nThe main reason to avoid an 84-month car loan: You'll pay more interest. Because these loans tend to be targeted at people with less-than-stellar credit, they often carry higher interest rates than three- or five-year loans to begin with. But even if you get a low interest rate, the longer your car loan, the more interest you'll pay over its life.\nSuppose you buy a $25,000 car with no down payment at 5.09% interest. Here's how three different loan scenarios pan out:\n*   36-month (three-year) loan: Payments are $750\/month; you pay $27,010 total ($2,010 in interest) over the life of the loan.\n*   60-month (five-year) loan: Payments are $473\/month; you pay $28,369 total ($3,369 in interest) over the life of the loan.\n*   84-month (seven-year) loan: Payments are $354\/month; you pay $29,770 total ($4,770 in interest) over the life of the loan.\nIf the thought of paying thousands of dollars in additional interest doesn't persuade you to steer clear of 84-month car loans, consider these other reasons to avoid them:\n*   **Car depreciation**: A new car loses as much as 20% of its value in the first year. Over the seven years of the loan, your car's value will continue depreciating, possibly to the point where you owe more money than the car is worth. That's called being \"upside down\" or having negative equity in your car.\nNegative equity becomes a real problem if you want to sell your car or trade it in for a newer model. The buyer or dealer will only pay you what the car is worth—so you actually lose money on the deal. If you get into an accident and your car is totaled, the insurer will only reimburse you for the car's value, but you'll still be on the hook for the remainder of the loan.\n*   **Outlasting the warranty**: Most new car warranties are good for three to five years. If you have a seven-year auto loan, however, you'll be making car payments for several years after the warranty has run out. Sure, you can pay for an extended warranty—but wasn't the whole point of an 84-month auto loan to keep your costs down? The older your car gets, the more likely it is to need costly maintenance or repairs. Paying for a new transmission while you're still paying for the car itself can be a real kick in the bank account.\n*   **Overextending yourself**: An 84-month car loan lets you buy more car than you can really afford—and let's face it: That's not a good thing. If you're eyeing a luxury car, know that they often cost more to operate, maintain and repair, which can cancel out any savings from the lower monthly payment. And if you lose your job, have to take a pay cut or face a major financial setback, you're still stuck with that (seemingly endless) car loan. END
 TITLE: Are 84-Month Auto Loans a Good Idea? CONTENT: How to Get Low Monthly Car Payments\n-----------------------------------\nIt is possible to buy a car without spending your whole paycheck each month. Here are some ways to lower your monthly car payments that make more financial sense than an 84-month auto loan.\n*   **Improve your credit score.** If your credit score isn't high enough to qualify for a lower interest rate on your loan, why not wait to buy a car and work to increase your credit score in the meantime? Devote yourself to paying down debt and making all of your payments on time. In as little as three to six months, you could have a higher credit score and qualify for a better loan.\n*   **Save for a larger down payment.** A bigger down payment can help you qualify for better terms on an auto loan. The down payment will also reduce the total amount of money you need to finance, helping to ensure that you don't end up owing more than the car is worth.\n*   **Lease the car.** Dealers often advertise appealing lease offers that can help you get the car you want with lower monthly payments than buying. But keep in mind that since you won't own the car at the end of the lease, you'll have nothing to show for the money you spent. You could also face additional costs if you go over the mileage limit. If your credit is poor, leasing a car could be difficult anyway.\n*   **Buy a less expensive model or a used car.** If the only way you can afford your dream car is with an 84-month loan, it could turn into a financial nightmare. Set your sights on a less expensive vehicle or look for a late-model used car instead. END
 TITLE: Are 84-Month Auto Loans a Good Idea? CONTENT: When to Refinance Your Car Loan\n-------------------------------\nHave you already taken out an 84-month auto loan? If interest rates have dropped or if your credit score has risen since you got the loan, you may be able to refinance and get better interest rates. Get your free FICO® Score☉ from Experian to see where you stand. Then contact banks, credit unions and online lenders to see what interest rates they're offering for auto refinance loans.\nEven if you had bad credit when you bought your car, paying your bills on time, monitoring your credit and paying down debt can all help boost your score relatively quickly. Get the details on how to improve your credit score and how to refinance a car loan. (Don't wait too long to refinance; in general, lenders prefer to refinance loans for cars under 5 years old.) END
 TITLE: Are 84-Month Auto Loans a Good Idea? CONTENT: The Bottom Line\n---------------\nIf you're looking longingly at pricey new cars, an 84-month car loan may seem like the answer to your prayers. However, the tradeoff of lower monthly payments is rarely worth the risk of owing more than your car is worth, being tied to endless car payments or spending more than you can really afford. Instead of getting locked into a seven-year car loan, look for a smarter way to keep your monthly payments down. END
 TITLE: How to Choose the Right Car Loan for You CONTENT: Financing Through a Dealership\n------------------------------\nThere are three types of financing you can get through a dealership: dealer-arranged financing, captive financing and \"buy here, pay here\" arrangements.\n### Dealer-Arranged Financing\nWhether you're working with an independent dealer or a franchise dealership that primarily sells cars from only one manufacturer, you may be able to take advantage of dealer-arranged financing.\nThe process works by having the dealer shop around for you based on your credit situation. They'll get quotes from multiple lenders, which you can compare to find the best one. This process can be convenient and save you some time, but keep in mind that the interest rate you get this way may be slightly higher than what you'd be able to get on your own. That's because dealers may offer what's called a \"buy rate,\" which includes compensation for handling the process.\n### Captive Financing\nMany car manufacturers own captive financing companies that finance cars made by the parent firm. For example, if you're buying a new or certified pre-owned Toyota from a franchise dealer, you may be able to finance your purchase through Toyota Financial Services.\nCaptive financing companies can often provide special financing promotions, especially on new models. But they're typically restrictive on which makes and models you can choose, and you may not get the chance to compare the offer with other lenders.\n### Buy Here, Pay Here Financing\nBuy here, pay here dealers specialize in working with people who have bad credit or no credit history at all and handle financing in-house rather than sending your contract to a lender.\nThis type of arrangement can make it easy to get approved if you're having a hard time getting financing elsewhere. But buy here, pay here dealerships tend to charge exorbitant fees and interest and often ask for a high down payment.\nThey may also lend you more than the vehicle is worth—something that's uncommon among other dealers—which could make your payments difficult to afford. As a result, repossessions are high with these dealers. END
 TITLE: How to Choose the Right Car Loan for You CONTENT: Getting a Car Loan From a Bank\n------------------------------\nOne alternative to getting financing through the dealer is to work directly with a bank. This entails getting preapproved with the bank online, over the phone or in person before you head to the dealership.\nDepending on the bank, you may need to provide details about the car you want to buy, which can be tough if you're not sure what you're looking for. Some banks, however, may just need your credit information and how much you want to borrow for the initial part of the process.\nOnce you're preapproved, you can take the offer to the dealership, then finalize the application and funding process once you've picked out your car and created the contract.\nGetting a car loan from a bank could potentially save you money by giving you a lower interest rate than what you'd get through dealer-arranged financing. However, shopping around can take longer if you're trying to get quotes from several individual banks on your own. END
 TITLE: How to Choose the Right Car Loan for You CONTENT: Borrowing From Credit Unions\n----------------------------\nGetting a car loan through a credit union is similar to doing it through a bank. The main difference is that credit unions typically don't have the same online presence as big banks, so you may need to do the entire process in person or over the phone. You also typically need to be a member of the credit union to get a loan, which can make it difficult to shop around.\nThat said, credit unions often offer lower interest rates and fees than banks, and often provide more personalized service. END
 TITLE: How to Choose the Right Car Loan for You CONTENT: Buying a Car Through Online Lenders\n-----------------------------------\nOnline lenders work similarly to banks and credit unions but provide a completely online application experience. You don't have to worry about driving to a local branch or, in some cases, even getting on the phone.\nSome online marketplaces allow you to compare multiple online auto lenders in one place based on your credit score. This setup makes it easy to shop competitive interest rates and pick the option with the best terms.\nThe downside is that there are several unfamiliar online lenders out there, so you don't always know what kind of experience you're going to get. Also, interest rates can vary widely, depending on which lender you work with, so you may have to put in time and research to ensure you find a good fit. END
 TITLE: How to Choose the Right Car Loan for You CONTENT: With so many financing options available, it can be tough to know which is the best one for your situation. As you compare your choices, think about all the features that are important to you, including interest rates, loan terms, vehicle restrictions and limitations, convenience, your credit history and more.\nGetting a car loan with the right terms for you can take some time, but shopping around is an essential step in the process to ensure you avoid leaving money on the table.\nAs you do so, be sure to keep the number of hard inquiries on your credit report to a minimum. If you apply for multiple loans within a short period—typically 14 days but sometimes longer—they'll be combined into one when calculating your credit score and won't have a huge impact. But if you drag out the process, having more than one inquiry counted against you could negatively affect your credit scores.\nAlso, make sure you focus on the amount you're financing and not just the monthly payment. Lenders and dealers may offer longer repayment terms to make it easier to finance more affordably. But longer repayment terms may cost you more in interest, even if the monthly payment is less. END
 TITLE: How to Choose the Right Car Loan for You CONTENT: Make Sure Your Credit Is in Good Shape\n--------------------------------------\nBefore you apply for a car loan, it's important to make sure your credit is in good shape. While it's possible to get a car loan with bad credit, you'll get more favorable terms if your score is higher.\nCheck your credit score and get a copy of your credit report from Experian or AnnualCreditReport.com, then look for any problem areas you may need to address. If you're behind on payments with one or more accounts, try to get caught up as quickly as possible and pay on time going forward. If you have high credit card balances, work on paying them down.\nImproving your credit can take time, and it's not always possible to boost your score quickly enough if you need to get into a new car now. But if you have time, it can make a big difference in the type of car you can qualify for and how much you ultimately pay to finance it. END
 TITLE: How to Choose the Right Car Payment CONTENT: Figure Out How Much You Can Afford\n----------------------------------\nStart by assessing your monthly income and expenses. It's especially important to consider your debt payments, such as mortgage payments, student loan payments and credit card payments. Lenders will look at the ratio of your total monthly debt obligations to your total monthly income when deciding whether to approve you for an auto loan. Ideally, your debt should be below 40% of your monthly income. Learn how to calculate your debt-to-income ratio.\nIf your debt-to-income ratio is in good shape, assess the rest of your monthly expenses to see how much you can spend on your car. In addition to the car payment itself, be sure to consider the other expenses of owning a car, such as insurance, repairs and gas. In general, your monthly car expenses shouldn't exceed 20% of your monthly net pay.\nIf you need to free up more money for a car payment, think of ways to reduce both fixed expenses (like your utilities and rent) and variable expenses (like groceries or online subscriptions). Get more tips on how to make a budget to understand where you might cut back to help fund your car payment. END
 TITLE: How to Choose the Right Car Payment CONTENT: Look at the Auto Loan, Not the Car Payment\n------------------------------------------\nThe cheapest car payment isn't always the best option. Why? Choosing the lowest car payment often means you end up paying more for your car in the long run. To lower your car payment, you typically need to stretch out the length of your loan. Over time, that means paying more interest.\nSuppose you want to buy a $20,000 car and have a $2,000 down payment, so you're financing $18,000. A 48-month (four-year) loan at 5.09% interest will have monthly payments of $415. The interest on this loan will cost you $1,933 over four years.\nWhat if you want to reduce your car payments? Stretching the same loan out to 60 months (five years) lowers your monthly payment to $340. However, over time, you'll pay $2,425 in interest. Extend the loan to 72 months (six years) and your monthly payment drops to $291—but your total interest paid rises to $2,926.\nInstead of comparing the different car payments you can get, compare different loan offers. Do this before you ever head to the dealership. You can look up current average interest rates on auto loans online. A good strategy is to get preapproved for an auto loan so you know what loan terms you can get from a bank—then have that preapproval with you when you consider the dealer's offers.\nWhen comparing loans, look at the amount borrowed, the length of the loan and the annual percentage rate (APR) to assess the ultimate cost. The APR represents the interest rate on the loan as well as any fees involved; compare APRs for loans of the same amount and duration to determine the best deal. END
 TITLE: How to Choose the Right Car Payment CONTENT: Other Ways to Get Low Monthly Car Payments\n------------------------------------------\nThere are plenty of options to lower your monthly car payments and make your car more affordable.\n*   **Improve your credit score.** A higher credit score qualifies you for better loan terms. If your credit score is only fair or poor, wait a bit to buy your car until you've improved it. Find out how to improve your credit score.\n*   **Save for a larger down payment.** The more you can afford to put toward a down payment, the lower your monthly car payments will be. A bigger down payment also reduces the loan amount you'll need, helping to keep your overall debt manageable.\n*   **Lease the car.** If you're craving a new car but can't afford the monthly payments to buy one, leasing generally offers lower monthly payments for the same type of vehicle. Just make sure you understand all the costs involved, as well as restrictions such as mileage limitations, and remember that you won't own the car when the lease is up. Learn more about leasing a car to find out if it's right for you.\n*   **Look for a less expensive or used car.** Today's late-model used cars offer many of the same extras and features as brand-new models at significantly lower prices. If you don't want to buy a used car, set your sights on a less expensive new car. You'll have lower monthly payments and still get to savor that new-car smell.\nTo get the best possible auto loan, get a free credit report and check your credit score three to six months before you start shopping for a car in earnest. When you get to the dealership, the dealer may try to get you to focus on lowering your monthly payment—often with a longer-term loan that costs more in the end. Don't let them dissuade you. Focus on the total cost of the car loan, not the monthly payment, to get the car you want at an affordable price. END
 TITLE: What Factors Do Lenders Consider When Determining My Interest Rate? CONTENT: Mortgages\n---------\nFor most people, a mortgage is the largest loan they will ever undertake—and that's why it's crucial to get the best rate possible. Even saving a fraction of a percent on your rate can save you thousands of dollars over the lifetime of the loan. Here's what mortgage lenders use to determine your interest rate:\n#### 1\\. Your credit scores\nMost lenders look at credit scores when deciding whether you qualify for a loan, and mortgages are no exception. That's why it's important to review your scores and credit reports regularly to make sure you're doing everything you can to keep them as high as possible.\n#### 2\\. Your down payment\nIn some cases, the bigger the down payment you make, the lower the interest rate you'll qualify for. That's because mortgage lenders see you as less risky if you make a substantial down payment. Ideally, you'll put down 20% or more for the best rates.\n#### 3\\. Your loan term and loan size\nIf you can get a loan for a shorter period of time, you may be able to qualify for a lower interest rate. With a shorter-term loan, you'll likely have a higher monthly payment—but lower costs overall. The same goes for the size of the loan: If your loan is particularly large or small, you might be able to qualify for a lower interest rate.\n#### 4\\. Your loan type\nMortgage loans come in different categories: conventional, FHA, USDA and VA loans. The rates on these different types of loan products can vary significantly, which is why you should shop around and do your research on what you might qualify for.\n#### 5\\. Your home location\nWhere you're buying a property also factors into the interest rate. Simply put, some markets are more expensive than others. END
 TITLE: What Factors Do Lenders Consider When Determining My Interest Rate? CONTENT: Auto Loans\n----------\nAuto lenders use the following factors to determine your interest rate:\n#### 1\\. Your credit scores\nYour credit history plays a big factor in auto loans, as well. The higher your credit scores, the lower your interest rates on car loans.\n#### 2\\. Your down payment\nJust like with mortgages, the more money you put down when buying a car, the more likely you are to qualify for a lower interest rate—because there's less risk to the lender.\n#### 3\\. Your loan term\nAgain, the shorter your loan period, the lower the interest rates you'll have access to.\n#### 4\\. Your car\nThe age of your car also plays a big role. New cars generally come with lower interest rates, while older cars carry higher rates because they hold a lower resale value. END
 TITLE: What Factors Do Lenders Consider When Determining My Interest Rate? CONTENT: Credit Cards\n------------\nCredit card issuers use the following factors to determine your interest rate:\n#### 1\\. Your credit scores\nSensing a pattern here? Your credit scores and history are key to determining which cards you qualify for, and at which rates.\n#### 2\\. The type of card you get\nYou will generally pay higher interest rates on rewards cards that offer significant perks—because that's how they pay for those benefits. No-frills cards are likely to come with lower rates.\n#### 3\\. Your payment history\nMost credit cards have a penalty rate—a higher interest rate issuers charge if you are late on your payments, regardless of your credit scores. That's another reason it's important to pay your bills on time.\n> Find the best credit cards in Experian CreditMatch™. END
 TITLE: What Factors Do Lenders Consider When Determining My Interest Rate? CONTENT: How to Qualify for the Best Rates\n---------------------------------\nThe bottom line is that for all types of loans, you'll want to ensure that your credit reports and scores are in tiptop shape.\nYou can get a free credit report from Experian. There's no credit card needed to sign up, and you will have access to an updated report every 30 days. You are also entitled to a free report from each bureau once a year, which you can access at AnnualCreditReport.com.\nWhen you check your reports, review them to make sure your identifying information is correct and the accounts are accurate. If you find an error, you can dispute it with the bureau directly. You can initiate a dispute online with Experian.\nYou can also check your credit scores through Experian, which makes it easy to understand your progress. You'll get information on your scores, along with explainers on why they stand where they do. END
 TITLE: How Much Can I Borrow in Student Loans? CONTENT: Federal Student Loans\n---------------------\nLoans from the U.S. Department of Education tend to have lower interest rates than those from private lenders. They also have more flexible payment options (including the possibility of loan forgiveness).\n**Direct (or Stafford) subsidized and unsubsidized loans** are fixed-rate, which means the interest won't change during the life of the loan. However, they differ in some ways:\n*   **Subsidized loans** are for those who demonstrate financial need. A huge advantage to these loans is that the federal government pays the interest while you're in school if you're attending classes at least half-time, and for the first six months after you leave school (known as the grace period). The government also covers the interest if you postpone (defer) repayment.\n*   **Unsubsidized loans** don't require you to prove financial need. However, they do require you to pay the interest while you're in school and during grace periods and deferment. If you don't pay the interest during that time, it gets added to your principal loan amount after your grace period or deferment ends, costing you more over the life of the loan.\nNeither type of direct loan takes credit history or income into account. You will have to pay an origination (processing) fee of 1.062% of the loan total. This rate may change after October 1, 2019. For current interest rates, see the table below.\n**Direct PLUS and parent PLUS loans** are available to grad students and to the parents of both undergraduate and graduate students. You don't need a good credit history to get these loans. In fact, even someone with an adverse credit history may be able to obtain a PLUS loan by getting a cosigner, taking an online credit counseling program, or proving that the adverse issues were due to [certain types of extenuating circumstances](;_ga=2.122374731.1161473596.1553526489-1457646683.1553526489#docExt-header).  \nThe origination fee for PLUS loans is currently just under 4.25%, and the interest rate is higher than on direct loans.\nLoan limits for each type of direct loan depends on whether the student is a dependent (listed as a dependent on federal and state income tax returns or receiving substantial financial support from a parent, spouse or guardian) or independent (not listed as a dependent or not receiving substantial support). For current loan limits on federal student loans, see below. END
 TITLE: How Much Can I Borrow in Student Loans? CONTENT: How to Qualify for Federal Student Loans\n----------------------------------------\nTo qualify for federal student loans, you must first fill out the Free Application for Federal Student Aid (FAFSA), which includes providing your family's income and tax information. The FAFSA could make you eligible for other kinds of help, too, such as state need-based grants or financial aid from the college you attend.  \nSome other conditions must be met when applying for federal student loans, including:\n*   Being a U.S. citizen or an eligible non-citizen (such as a U.S. national or possessor of a permanent resident card)\n*   Having a valid Social Security number (in most cases)\n*   Showing satisfactory academic progress\n*   Attending school at least half-time\nSchools use the FAFSA to create a financial aid package, which you'll receive in the form of an award letter. This package could include federal student loans as well as scholarships, work-study programs and grants. END
 TITLE: How Much Can I Borrow in Student Loans? CONTENT: Private Student Loans\n---------------------\nPrivate student loan lenders generally have stricter standards for income and credit history. Each lender has its own guidelines for determining loan limits, although many will lend no more than the cost of your education (minus other financial aid you receive). However, it's worth noting that some private lenders write fairly big checks: According to U.S. News & World Report, private loans can top out at as much as $500,000.  \nAnother difference between federal and private student loans is the way you repay them. The standard federal loan term is 10 years. Private terms vary, but could be as few as five years; they could also be longer than 10 years. Some private loans do not offer grace periods.  \nNote that unlike fixed-rate federal loans, a private student loan might be variable-rate. In other words, the interest could fluctuate during the life of the loan, possibly more than once a year (although some private student loans come with an interest cap). In addition, private lenders don't pay the interest on loans while you're in school or during the grace period or deferment periods the way the government does for direct subsidized federal student loans. END
 TITLE: How Much Can I Borrow in Student Loans? CONTENT: Read the school award letter carefully, because it may not include all costs. It may list tuition but not room and board, for example. Or it may omit the expected cost of books, supplies and fees. It's important to consider _all_ expenses when planning how much you need to borrow each year.  \nFor example, if you have to fly or drive a long distance to the school, remember that you may need to do this a few times a year. You may also incur class fees: Art students may need to replenish paints or sculpting materials, or chemistry class might require goggles. Factor in costs for dorm supplies (clothing detergent, shower supplies, those extra-long sheets). Allow for some spending money for treats like the occasional meal away from the dining hall or special activities like concerts and sporting events.\nAs a general estimate, the Consumer Financial Protection Bureau suggests not taking out more in student loans than you could earn in the first year after graduation. The U.S. Department of Labor's career search tool or its Occupational Outlook Handbook can help you determine starting salaries in your chosen field.  \nIt may be possible to negotiate your aid package. Among other things, ask if:\n*   School-based aid could be renewable each year\n*   The school has other aid sources you could apply for\n*   The school will match financial aid packages offered by other colleges END
 TITLE: How Much Can I Borrow in Student Loans? CONTENT: Impacts on Credit\n-----------------\nAny type of debt will have an effect on your credit reports and your credit scores. Credit scoring companies consider your payment history, debt load and the size of your monthly obligation when calculating your credit scores, so how you manage your student loan payments can have a direct effect. Even if your student loans are in deferment, the total amount you owe makes a difference. It can affect whether you'll be able to get a mortgage, vehicle loan or credit card later on.  \nMissing a student loan payment can have a serious impact on your credit. On-time payments make up 35% of your FICO® Score☉ , and a delinquency stays on your credit report for seven years. END
 TITLE: How Much Can I Borrow in Student Loans? CONTENT: The Takeaway\n------------\nMany people rely to some extent on student loans to get their degrees. However, the smart money is on borrowing only what you need to cover your educational expenses. This reduces the chances of starting your post-college life with overwhelming student loan payments. END
 TITLE: Buying a New Car? Here’s What You Need to Know CONTENT: Check Your Credit Reports and Scores\n------------------------------------\nIf you're planning to take out a loan on your new car purchase, your credit scores will have a significant impact on how much you pay each month and over the life of your new loan.\nAccording to Experian's latest State of the Automotive Finance Market report, the current average auto loan interest rates range from 4.19% to 14.88%, depending on where your credit scores lie. On a $20,000 car loan with a five-year repayment term, that's a difference of $105 per month and $6,269 in interest over the life of the loan.\nCheck your FICO® Score☉ to get an idea of where you stand. If your credit score is in great shape, you may have a good chance of getting approved with favorable terms. If, however, your score needs some work, it may be better to hold off on a new car until you can improve your credit.\nYou can do this by checking your credit report at AnnualCreditReport.com and seeing what areas need work. For example, if you have late payments in your credit file, get caught up as quickly as possible. And if you have high credit card balances, try to pay them down to reduce your credit utilization rate.\nAlso, look for errors that are hurting your credit scores, and dispute them with the credit reporting agencies to see if they can be removed. Building your credit can take time, but the potential savings are worth it. END
 TITLE: Buying a New Car? Here’s What You Need to Know CONTENT: Know Your Budget\n----------------\nGetting a new car can be an exciting experience, but you may regret it if the monthly payment makes it difficult to work toward other financial goals or even get by.\nTake a look at your budget to see how much you can afford to pay each month. Make sure to consider other financial obligations and goals, as well as the discretionary spending that makes up your lifestyle.\nAlso, look at your savings to see if you can afford a down payment and, if so, how much. A down payment can reduce how much you need to borrow and, therefore, your monthly payment. But if you drain your savings to buy a car, it could leave you financially vulnerable if an emergency occurs and you're broke.\nKeep in mind that trading in your current car can help increase your down payment amount—although selling the car to a private buyer could net you a higher sales price than selling it to a dealership.\nOnce you have an idea of how much you can spend each month on a car loan, you'll have a better idea of what sales price you can afford. END
 TITLE: Buying a New Car? Here’s What You Need to Know CONTENT: Shop Around for Auto Loans\n--------------------------\nWith some car dealers, it's possible to have the finance department arrange financing for you with one of the lenders they work with. However, you may be able to get a better deal if you get an auto loan on your own.\nIf you go this route, you'll start the process before you ever step foot in the dealership. Banks, credit unions and online lenders can preapprove you for a loan based on several factors, including your credit history, income and expenses, and the vehicle you're looking to buy. You can then take the conditional offer to a dealership.\nTo improve your chances of getting the lowest interest rate you qualify for, it's best to compare a handful of auto lenders and the rates they offer. Doing this will not only save you time at the dealership, but it can also save you money. That's because when a dealer arranges financing through one of its partners, they may offer you a rate that's higher than what their partner quotes, with the difference acting as compensation to the dealer for handling the process.\nBy bringing your own financing terms to the table, you may be able to negotiate a lower interest rate through the dealer or buy the car with a rate the dealer may not be able to beat.\nJust keep in mind as you shop around that it's best to do so quickly. If you apply for multiple car loans within a 14-day period (sometimes that period is longer, but it's better to be safe than sorry), all the credit inquiries are typically counted as one inquiry when calculating your credit scores. END
 TITLE: Buying a New Car? Here’s What You Need to Know CONTENT: Negotiate and Make a Deal\n-------------------------\nRegardless of who you're buying the car from, negotiating is an important way to ensure you get the best price available. Once you have a car in mind, look up its value using Kelley Blue Book or NADA.\nThen research several dealerships in your area to see what the car is selling for. If you have a preferred dealership but find a lower sales price somewhere else, you can use that information to negotiate with the dealer you'd rather work with.\nFinally, keep in mind that car salespeople often have sales quotas. If you're not in a hurry, consider waiting until the end of the month, quarter or year to head to the dealership. If you get a salesperson who hasn't yet met their quota, they may be more willing to cut the sales price to make the sale and reach their goal. END
 TITLE: Buying a New Car? Here’s What You Need to Know CONTENT: Monthly Payments vs. Total Cost\n-------------------------------\nIn general, dealers talk in terms of monthly payments and may encourage you to get an auto loan with a longer repayment term to make the payment more affordable. If this happens, it's important to keep an eye on how much you'll end up paying total to avoid overpaying for the car.\nAs an example, let's say you're purchasing a new car for $25,000 and qualify for a 5% interest rate if you opt for a four-year repayment term. Your monthly payment would be $576, and you'd pay a total of $2,635 in interest.\nIf you go with a six-year repayment term, however, let's say your interest rate would increase to 6%. In this scenario, your monthly payment would be more affordable at $414, but you'd pay $4,831 in interest over the life of the loan.\nTo avoid getting stuck with a more expensive loan, make sure to ask the dealer to explain the loan options in terms of total cost instead of just the monthly payment. END
 TITLE: Buying a New Car? Here’s What You Need to Know CONTENT: Impacts on Your Credit\n----------------------\nA car loan can be good or bad for your credit, depending on how you handle the monthly payments. Because your payment history is the most important factor in your credit scores, paying on time every month can have a positive influence on your credit scores.\nOn the flip side, missing a payment by 30 days or more can potentially have a significant negative impact on your credit scores. To ensure that your auto loan only helps your credit scores, consider setting up automatic payments. END
 TITLE: Buying a New Car? Here’s What You Need to Know CONTENT: Make Sure Buying a New Car Is the Right Choice\n----------------------------------------------\nThe best time to buy a new car is when you need one. But if you don't need one, it may be better to hold off on the purchase. That's especially the case if your credit can use some work or you want to save up more for a bigger down payment.\nThat said, it's best to avoid waiting until an emergency situation to buy a car. If you don't have a lot of time, you may lose some of your negotiating power, both on the sales price and the terms of the loan, because you're desperate.\nWhatever you do, give yourself enough time to research and negotiate your options so you can get the best deal that's available to you. END
 TITLE: Do Student Loans Help Build Credit? CONTENT: Student Loans Can Benefit Your Credit\n-------------------------------------\nA student loan is a type of installment loan—a loan that you'll repay with regular (often monthly) payments over a predetermined period.\nStudent loans can help you build credit by adding new accounts to your credit reports and, over time, increasing the length of your credit history. Additionally, if you don't already have an installment loan (such as an auto loan or personal loan) in your credit history, the student loan will add to your credit mix, which also helps your credit.\nHowever, as with other loans, part of the impact can depend on whether you make your payments on time or fall behind on your bill. On-time payments can help improve your credit, while late payments will hurt it. END
 TITLE: Do Student Loans Help Build Credit? CONTENT: Paying Off Student Loans Can Have a Lasting Positive Effect\n-----------------------------------------------------------\nWhen you first pay off a student loan, your score might drop slightly. This can happen if your student loan was your only installment account, or if your remaining installment accounts have high balances relative to their original loan amounts. Generally, you don't have to worry about the small drop, as your scores will recover and may even improve in the months to come.\nAssuming you made your payments on time and paid off your loan by the due dates, your student loan can remain on your credit reports for 10 years after you pay it off. That's a good thing. While it's on your credit reports, the account's history can continue to positively impact the length of your credit history, your credit mix and your payment history—which all contribute to better credit. END
 TITLE: Do Student Loans Help Build Credit? CONTENT: Factors That Affect Credit Scores\n---------------------------------\nMany factors play a role in determining your credit scores, and student loans can affect these in different ways. The primary scoring factors are often grouped into five categories:\n*   **Payment history**: A long history of on-time payments can help your credit scores, while a late payment can hurt your scores. The impact of late payments decreases over time.\n*   **Amount owed vs. loan balance**: The amount you owe on your student loans relative to the original balance can also affect your scores. As you pay down your student loans, the lower balance can help your scores.\n*   **Length of credit history**: A longer credit history, and a longer average age of accounts, could help your scores. Your student loan's account history can start when your loan is disbursed, even if you didn't start making payments until after you graduated.\n*   **Credit mix**: Having experience managing multiple types of debt can help your scores. Student loans are a type of installment loan, which has a fixed repayment period. Credit cards and lines of credit are part of the other type, revolving accounts, which have an indefinite repayment period.\n*   **Hard inquiries**: If you apply for private student loans, the resulting hard inquiries (when a lender asks to see your credit report) may hurt your credit scores. However, there's generally only a minor impact and your scores may rebound within a few months. END
 TITLE: Do Student Loans Help Build Credit? CONTENT: Student Loans Could Also Negatively Impact Credit\n-------------------------------------------------\nAlthough you'll have more debt, taking out student loans usually won't have an immediately large positive or negative impact on your credit scores. However, during repayment, missing just one payment could hurt your scores.\nThe impact of late payments may also be amplified because many borrowers take out more than one student loan to pay for school. During repayment, they make one monthly payment to their student loan service, which then distributes the money to repay the individual loans. As a result, missing one payment to your servicer could lead to multiple late payments getting added to your credit reports.\nIf you miss multiple payments in a row and are 270 days late on federal student loans, your loans will go into default. Private student loans can default sooner. The default will get reported to the credit bureaus, which will further hurt your scores and can lead to additional consequences. You may have to pay extra fees, and the government can take funds directly from your paycheck or tax return to repay your past-due amount. Fortunately, there are ways to get your federal loans out of default, and even have the default removed from your credit history.\nAlso, although it's not part of your credit scores, the debt from your student loans could increase your debt-to-income (DTI) ratio. Creditors may consider this when you apply for a new loan, and having a higher DTI can make it more difficult to get approved with the best rates and terms. END
 TITLE: Do Student Loans Help Build Credit? CONTENT: Other Ways to Build Credit as a Student\n---------------------------------------\nStudents, including those who haven't taken out student loans, can also look for additional ways to build credit. Here are a few popular ideas:\n*   **Become an authorized user****.** When someone adds you as an authorized user to one of their credit cards, the card account's history may be reported to the credit bureaus under your name as well. If the person has a history of on-time payments, this additional history could help bolster your credit. However, if the person misses a payment or uses a large portion of the available credit limit on their account, these negative factors could also impact your credit.\n*   **Open a student credit card****.** Some credit card issuers offer student credit cards, which tend to have easier qualification requirements than non-student cards. However, they're usually only available to students and may have a low credit limit. Using the card for a small purchase and then paying the bill in full each month can be an effective way to build positive credit history while avoiding interest.\n*   **Open a secured credit card****.** A secured credit card can also help you build your credit, or rebuild your credit if you've had credit troubles in the past. Secured credit cards don't require you to be a student, but you'll have to give the issuer a refundable security deposit which generally determines your account's credit limit. Depending on the card, you may get the security deposit back after responsibly using your card for several months, or when you close the account (assuming it doesn't have a remaining balance). As with other credit cards, try to use only a small portion of your credit line and pay your entire bill every month. END
 TITLE: Do Student Loans Help Build Credit? CONTENT: Managing Student Loan Payments\n------------------------------\nOne of the most direct ways a student loan could wind up hurting your credit is if you miss a payment. However, when money is tight, your rent, groceries, utilities and other bills may take priority.\nFortunately, there are federal student loan repayment plans and programs that may be able to lower or temporarily pause your monthly payments. In some cases, your monthly payment may drop to $0 a month, which will still count as an on-time payment in your credit history. Some private student lenders may offer similar forms of assistance.\nWhen you can make your student loan payments without worry, keep at it or even consider refinancing to save money on interest. But if you're having trouble, research your options on StudentAid.gov and by contacting your loan servicer.\nIf you can make all your student loan payments on time and pay it off on schedule, it could go a long way to help your credit—and your financial future. END
 TITLE: Best Loans for Veterans and Active Military Members CONTENT: Best for Imperfect Credit: Avant\n--------------------------------\nApply\non Avant's website\n**Recommended FICO® Score\\***\nFair - Very Good\nAmount\nAvailable loan amounts: $2,000 to $35,000\nEst. monthly payment: $91 to $2,048\nGrace period: 10 days\nApplication fee: $0\n##### Loan Details\n*   Personal loans from $2,000 to $35,0001 entirely online\n*   Checking your loan options will not affect your credit score\n*   Funding as soon as next business day2\n*   No collateral needed and customer support available 7 days a week\nDisclosure\nAvant personal loans are designed for borrowers with low credit scores. Although their loans aren't the least expensive option for veterans or active military members, they may make sense for those who don't have the best credit. Even if you have a credit score as low as 580, which puts you in the \"fair\" FICO® Score☉ range, you may still be able to secure a loan through Avant.\nThe lender also offers an SCRA program, through which they provide an interest rate of no more than 6% on all eligible loans to active-duty members. Avant personal loans range from $2,000 to $35,000 and come with repayment terms of 24 to 60 months. If you take out a loan with Avant, you can expect to pay an administration fee of up to 4.75%.  \nBest for a Large Expense: SoFi\n------------------------------\nApply\non SoFi's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $5,000 to $100,000\nEst. monthly payment: $217 to $4,944\nGrace period: 10 days\nApplication fee: $0\n##### Loan Details\n*   Personal Loans with low fixed rates\n*   Borrow up to $100,000\n*   No Origination Fees, No Prepayment Penalties, and No Late or Overdraft Fees\n*   Simple online application with live support 7 days a week\n*   Apply Now\nDisclosure\nSoFi may be a good option if you have a large expense coming up, such as a kitchen renovation or major surgery. The lender offers loans of up to $100,000 as well as career coaching, networking events and other perks for veterans.\nIn addition, SoFi does not charge late fees and offers protection if you happen to lose your job. The one caveat with SoFi, however, is that you must have good credit to get approved for a loan, as the lender's minimum required credit score is 680.  \nBest for Debt Consolidation: Prosper\n------------------------------------\nApply\non Prosper's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $2,000 to $40,000\nEst. monthly payment: $61 to $1,720\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   640 minimum FICO® Score\n*   More than $16 billion loans funded\n*   Consolidate debt, finance a home improvement project, or pay off medical expenses\n*   9 out of 10 customers would recommend Prosper to friends or family\\*\\*\n*   Co-borrower option available. Applying with a co-borrower could help improve your rates.\n*   Get your money in as few as 3 days - your monthly payment stays the same\nDisclosure\nFrequent relocation, spousal unemployment, financial inexperience and other factors may have left you in debt. A debt consolidation loan, which can help you consolidate all of your high interest loans into one loan with a lower interest rate can help you pay down debt.\nProsper offers debt consolidation loans with fixed interest rates and an online electronic payment system that makes it easy for you to manage your entire loan directly. Since there are no prepayment penalties, you can pay off your debt consolidation loan early if you wish.  \nBest for Auto Loans: LendingTree\n--------------------------------\nFor a good deal on an auto loan, LendingTree is a strong choice. It can give you the chance to compare auto loans from multiple lenders. Once you fill out a simple and secure form online, you'll receive up to five offers. Regardless of whether you have a good credit score or one that needs improvement, you'll likely be able to find an auto loan that aligns with your budget and lifestyle.\nBest for Student Loans: Ascent\n------------------------------\nIf you have student loans and need some time to get back on your feet before making payments, you may be a good fit for Ascent. Ascent offers an active-duty military loan deferment, which is available up to a cumulative limit of 36 months.\nTo receive this deferment, you must submit an application and documentation to prove you are serving on active duty during a war, other military operation or national emergency, or performing qualifying National Guard duty during a war or other military operation. If you pursue Ascent's active duty military deferment, you will be extending the repayment term of your student loans.\nWhich Loan Is Right for You?\n----------------------------\nThere are a variety of great loans available to veterans and active military members. Take the time to evaluate all of your options and consider the purpose of your loan as well as your credit score, current financial situation and long-term financial goals before making a decision.  \n_All information about Ascent Student Loans and LendingTree Auto Loans has been collected independently by Experian and have not been reviewed or provided by the offer provider._ END
 TITLE: Best Loans for Veterans and Active Military Members CONTENT: Best for Imperfect Credit: Avant\n--------------------------------\nApply\non Avant's website\n**Recommended FICO® Score\\***\nFair - Very Good\nAmount\nAvailable loan amounts: $2,000 to $35,000\nEst. monthly payment: $91 to $2,048\nGrace period: 10 days\nApplication fee: $0\n##### Loan Details\n*   Personal loans from $2,000 to $35,0001 entirely online\n*   Checking your loan options will not affect your credit score\n*   Funding as soon as next business day2\n*   No collateral needed and customer support available 7 days a week\nDisclosure\nAvant personal loans are designed for borrowers with low credit scores. Although their loans aren't the least expensive option for veterans or active military members, they may make sense for those who don't have the best credit. Even if you have a credit score as low as 580, which puts you in the \"fair\" FICO® Score☉ range, you may still be able to secure a loan through Avant.\nThe lender also offers an SCRA program, through which they provide an interest rate of no more than 6% on all eligible loans to active-duty members. Avant personal loans range from $2,000 to $35,000 and come with repayment terms of 24 to 60 months. If you take out a loan with Avant, you can expect to pay an administration fee of up to 4.75%. END
 TITLE: Best Loans for Veterans and Active Military Members CONTENT: Best for a Large Expense: SoFi\n------------------------------\nApply\non SoFi's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $5,000 to $100,000\nEst. monthly payment: $217 to $4,944\nGrace period: 10 days\nApplication fee: $0\n##### Loan Details\n*   Personal Loans with low fixed rates\n*   Borrow up to $100,000\n*   No Origination Fees, No Prepayment Penalties, and No Late or Overdraft Fees\n*   Simple online application with live support 7 days a week\n*   Apply Now\nDisclosure\nSoFi may be a good option if you have a large expense coming up, such as a kitchen renovation or major surgery. The lender offers loans of up to $100,000 as well as career coaching, networking events and other perks for veterans.\nIn addition, SoFi does not charge late fees and offers protection if you happen to lose your job. The one caveat with SoFi, however, is that you must have good credit to get approved for a loan, as the lender's minimum required credit score is 680.  \nBest for Debt Consolidation: Prosper\n------------------------------------\nApply\non Prosper's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $2,000 to $40,000\nEst. monthly payment: $61 to $1,720\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   640 minimum FICO® Score\n*   More than $16 billion loans funded\n*   Consolidate debt, finance a home improvement project, or pay off medical expenses\n*   9 out of 10 customers would recommend Prosper to friends or family\\*\\*\n*   Co-borrower option available. Applying with a co-borrower could help improve your rates.\n*   Get your money in as few as 3 days - your monthly payment stays the same\nDisclosure\nFrequent relocation, spousal unemployment, financial inexperience and other factors may have left you in debt. A debt consolidation loan, which can help you consolidate all of your high interest loans into one loan with a lower interest rate can help you pay down debt.\nProsper offers debt consolidation loans with fixed interest rates and an online electronic payment system that makes it easy for you to manage your entire loan directly. Since there are no prepayment penalties, you can pay off your debt consolidation loan early if you wish.  \nBest for Auto Loans: LendingTree\n--------------------------------\nFor a good deal on an auto loan, LendingTree is a strong choice. It can give you the chance to compare auto loans from multiple lenders. Once you fill out a simple and secure form online, you'll receive up to five offers. Regardless of whether you have a good credit score or one that needs improvement, you'll likely be able to find an auto loan that aligns with your budget and lifestyle.\nBest for Student Loans: Ascent\n------------------------------\nIf you have student loans and need some time to get back on your feet before making payments, you may be a good fit for Ascent. Ascent offers an active-duty military loan deferment, which is available up to a cumulative limit of 36 months.\nTo receive this deferment, you must submit an application and documentation to prove you are serving on active duty during a war, other military operation or national emergency, or performing qualifying National Guard duty during a war or other military operation. If you pursue Ascent's active duty military deferment, you will be extending the repayment term of your student loans.\nWhich Loan Is Right for You?\n----------------------------\nThere are a variety of great loans available to veterans and active military members. Take the time to evaluate all of your options and consider the purpose of your loan as well as your credit score, current financial situation and long-term financial goals before making a decision.  \n_All information about Ascent Student Loans and LendingTree Auto Loans has been collected independently by Experian and have not been reviewed or provided by the offer provider._ END
 TITLE: Best Loans for Veterans and Active Military Members CONTENT: Best for a Large Expense: SoFi\n------------------------------\nApply\non SoFi's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $5,000 to $100,000\nEst. monthly payment: $217 to $4,944\nGrace period: 10 days\nApplication fee: $0\n##### Loan Details\n*   Personal Loans with low fixed rates\n*   Borrow up to $100,000\n*   No Origination Fees, No Prepayment Penalties, and No Late or Overdraft Fees\n*   Simple online application with live support 7 days a week\n*   Apply Now\nDisclosure\nSoFi may be a good option if you have a large expense coming up, such as a kitchen renovation or major surgery. The lender offers loans of up to $100,000 as well as career coaching, networking events and other perks for veterans.\nIn addition, SoFi does not charge late fees and offers protection if you happen to lose your job. The one caveat with SoFi, however, is that you must have good credit to get approved for a loan, as the lender's minimum required credit score is 680. END
 TITLE: Best Loans for Veterans and Active Military Members CONTENT: Best for Debt Consolidation: Prosper\n------------------------------------\nApply\non Prosper's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $2,000 to $40,000\nEst. monthly payment: $61 to $1,720\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   640 minimum FICO® Score\n*   More than $16 billion loans funded\n*   Consolidate debt, finance a home improvement project, or pay off medical expenses\n*   9 out of 10 customers would recommend Prosper to friends or family\\*\\*\n*   Co-borrower option available. Applying with a co-borrower could help improve your rates.\n*   Get your money in as few as 3 days - your monthly payment stays the same\nDisclosure\nFrequent relocation, spousal unemployment, financial inexperience and other factors may have left you in debt. A debt consolidation loan, which can help you consolidate all of your high interest loans into one loan with a lower interest rate can help you pay down debt.\nProsper offers debt consolidation loans with fixed interest rates and an online electronic payment system that makes it easy for you to manage your entire loan directly. Since there are no prepayment penalties, you can pay off your debt consolidation loan early if you wish.  \nBest for Auto Loans: LendingTree\n--------------------------------\nFor a good deal on an auto loan, LendingTree is a strong choice. It can give you the chance to compare auto loans from multiple lenders. Once you fill out a simple and secure form online, you'll receive up to five offers. Regardless of whether you have a good credit score or one that needs improvement, you'll likely be able to find an auto loan that aligns with your budget and lifestyle.\nBest for Student Loans: Ascent\n------------------------------\nIf you have student loans and need some time to get back on your feet before making payments, you may be a good fit for Ascent. Ascent offers an active-duty military loan deferment, which is available up to a cumulative limit of 36 months.\nTo receive this deferment, you must submit an application and documentation to prove you are serving on active duty during a war, other military operation or national emergency, or performing qualifying National Guard duty during a war or other military operation. If you pursue Ascent's active duty military deferment, you will be extending the repayment term of your student loans.\nWhich Loan Is Right for You?\n----------------------------\nThere are a variety of great loans available to veterans and active military members. Take the time to evaluate all of your options and consider the purpose of your loan as well as your credit score, current financial situation and long-term financial goals before making a decision.  \n_All information about Ascent Student Loans and LendingTree Auto Loans has been collected independently by Experian and have not been reviewed or provided by the offer provider._ END
 TITLE: Best Loans for Veterans and Active Military Members CONTENT: Best for Debt Consolidation: Prosper\n------------------------------------\nApply\non Prosper's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $2,000 to $40,000\nEst. monthly payment: $61 to $1,720\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   640 minimum FICO® Score\n*   More than $16 billion loans funded\n*   Consolidate debt, finance a home improvement project, or pay off medical expenses\n*   9 out of 10 customers would recommend Prosper to friends or family\\*\\*\n*   Co-borrower option available. Applying with a co-borrower could help improve your rates.\n*   Get your money in as few as 3 days - your monthly payment stays the same\nDisclosure\nFrequent relocation, spousal unemployment, financial inexperience and other factors may have left you in debt. A debt consolidation loan, which can help you consolidate all of your high interest loans into one loan with a lower interest rate can help you pay down debt.\nProsper offers debt consolidation loans with fixed interest rates and an online electronic payment system that makes it easy for you to manage your entire loan directly. Since there are no prepayment penalties, you can pay off your debt consolidation loan early if you wish. END
 TITLE: Best Loans for Veterans and Active Military Members CONTENT: Best for Auto Loans: LendingTree\n--------------------------------\nFor a good deal on an auto loan, LendingTree is a strong choice. It can give you the chance to compare auto loans from multiple lenders. Once you fill out a simple and secure form online, you'll receive up to five offers. Regardless of whether you have a good credit score or one that needs improvement, you'll likely be able to find an auto loan that aligns with your budget and lifestyle. END
 TITLE: Best Loans for Veterans and Active Military Members CONTENT: Best for Student Loans: Ascent\n------------------------------\nIf you have student loans and need some time to get back on your feet before making payments, you may be a good fit for Ascent. Ascent offers an active-duty military loan deferment, which is available up to a cumulative limit of 36 months.\nTo receive this deferment, you must submit an application and documentation to prove you are serving on active duty during a war, other military operation or national emergency, or performing qualifying National Guard duty during a war or other military operation. If you pursue Ascent's active duty military deferment, you will be extending the repayment term of your student loans. END
 TITLE: Best Loans for Veterans and Active Military Members CONTENT: Which Loan Is Right for You?\n----------------------------\nThere are a variety of great loans available to veterans and active military members. Take the time to evaluate all of your options and consider the purpose of your loan as well as your credit score, current financial situation and long-term financial goals before making a decision. END
 TITLE: What Is an FHA Loan? CONTENT: How FHA Loans Work\n------------------\nFHA loans are mortgages that are insured by the U.S. government (the Federal Housing Administration, more specifically), but you obtain one by applying through an FHA-approved mortgage lender. This could be a bank, credit union or online lender like Quicken Loans.\nFHA loans are considered slightly more risky to the lender since borrowing criteria is less strict, so the government backs the loan to reduce the lender's risk, and you have to pay insurance for the life of the loan. If you qualify for an FHA loan (more on that below), you can apply through any FHA-approved mortgage lender. The amount you can borrow with an FHA loan depends on where you live, since housing costs vary greatly across the country. END
 TITLE: What Is an FHA Loan? CONTENT: How an FHA Loan Is Different From a Conventional Loan\n-----------------------------------------------------\nWhile FHA loans and conventional loans are both mortgages that allow you to borrow money to purchase a home, there are a few key differences:\n*   **Down payment requirements**: While you can get some conventional loans with as little as 3% down, most require 5% down, and borrowers often put down more than that. With an FHA loan, you can get a mortgage by putting down only 3.5%.\n*   **Insurance requirements**: A conventional mortgage only requires you to pay mortgage insurance if you put down less than 20%. And if you do put down less, the mortgage can be cancelled once you have 20% equity in the house. An FHA loan, on the other hand, requires you to pay mortgage insurance for the life of the loan (unless you put down 10%, and then you can stop paying it after 11 years).\n*   **Borrowing criteria**: Conventional loans have more stringent credit score requirements; FHA loans allow for borrowers to have lower credit scores.\n*   **Interest rates**: An FHA APR is usually 1.5 to 2 points higher than conventional fixed-rate mortgages for borrowers with good to excellent credit. But FHA interest rates are lower than introductory rates on conventional subprime mortgages, especially adjustable-rate mortgages that have a big rate increase after several years.\n*   **Closing costs**: With a conventional loan, you have to pay for all closing costs in full at closing. An FHA loan lets you finance some closing costs and spread them out over time as part of your mortgage payment. END
 TITLE: What Is an FHA Loan? CONTENT: Types of FHA Loans\n------------------\nNot many homebuyers realize this, but there are actually several different types of FHA loans. In addition to traditional FHA loans, you also have these options:\n*   **FHA 203(k) loans**: These are rehabilitation loans that are intended to help you finance the repair and rehabilitation of a single-family home. There is a standard 203(k) loan, in addition to a limited 203(k) loan, which lets you add up to $35,000 to your mortgage to improve, upgrade or repair a home.\n*   **Home Equity Conversion Mortgage (HECM)**: This FHA program is for seniors aged 62 and older, and it serves as a reverse mortgage. It allows qualified homeowners to withdraw some of the equity they've put into their home.\n*   **FHA Energy Efficient Mortgage (EEM)**: This program allows homebuyers to finance energy-efficient improvements to a home as part of their FHA loan.\n*   **FHA Section 245(a)**: The National Housing Act's Section 245(a) is intended to help homeowners whose income is expected to increase, so the FHA created the Graduated Payment Mortgage in response. This mortgage's payments increase gradually over a period of several years, and there are five different plan types available. END
 TITLE: What Is an FHA Loan? CONTENT: FHA Loan Requirements\n---------------------\nFHA loans have several important requirements that you should be aware of before you apply.\n*   **Minimum down payment**: You can make a down payment as low as 3.5%, though with worse credit scores, you may have to put 10% down (details below).\n*   **Debt-to-income ratio**: All mortgage lenders look at your debt to income ratio (DTI), which compares how much you pay each month for debt with how much income you bring in each month. The higher your DTI, the riskier you appear to lenders since it indicates that a large percentage of your income goes toward debt payments. To get an FHA loan, you typically can't have a DTI ratio over 43%.\n*   **Mortgage insurance**: An FHA loan requires you to pay mortgage insurance, and the cost is spread across two payment types:\n    *   One single bulk payment of 1.75% of the loan amount, which is due at closing but can be rolled into your loan financing.\n    *   An additional .45% to 1.05% of loan total, which is charged annually for the life of the loan (on loans of 20 years or more with down payments less than 5%). This fee is spread out over your monthly payments.\n*   **No recent foreclosures**: If you've had your home foreclosed, you must wait three years until you're able to qualify for an FHA loan. However, if you encounter financial hardships after buying a home with an FHA loan, the FHA has several programs designed to help keep you in your house.\n*   **Other criteria**: You also typically must have a Social Security number and proof of sufficient income or assets that indicate you can afford the mortgage and your other debt obligations. END
 TITLE: What Is an FHA Loan? CONTENT: What Credit Score Is Required for an FHA Loan?\n----------------------------------------------\nFHA loans are ideal for those who have less-than-perfect credit and may not be able to qualify for a conventional mortgage loan. The size of your required down payment for an FHA loan depends on the state of your credit score:\n*   If your credit score is between 500 and 579, you must put 10% down.\n*   If your credit score is 580 or above, you can put as little as 3.5% down (but you can put down more if you want to). END
 TITLE: What Is an FHA Loan? CONTENT: What to Consider Before Applying for an FHA Loan\n------------------------------------------------\nBe aware that you can't use an FHA loan for every type of property. You can't use one to buy fixer-uppers or certain foreclosures, and there are strict requirements for condos. Additionally, the property has to be your primary residence, so it can't be used on an investment property. The home you buy with an FHA loan must also meet strict government appraisal standards.\nAlso, keep in mind that some sellers might avoid buyers who use FHA loans. That's because some sellers assume that FHA borrowers have financial issues and that the transaction may not pan out, or that the buyer won't be interested in paying for any repairs. To make yourself competitive with non-FHA borrowers, you could make a full-price offer, or offer to buy the house as-is (though, of course, that carries its own risks).\nIt's also important to recognize that while scoring a low down payment is a huge perk for someone with minimal savings, it also has a drawback: You'll pay more interest over the life of the loan since you're starting off with so little equity in the home. On the other hand, the less you have to borrow, the more of your payment that will go toward the principal and allow you to build equity in the home faster—so you might want to put down more than the minimum down payment if you can. END
 TITLE: What Is an FHA Loan? CONTENT: How to Qualify for an FHA Loan\n------------------------------\nDoes an FHA loan sound like the right fit for you? Here's how to get ready to qualify:\n*   **Check your credit score.** If it isn't high enough to qualify for an FHA loan yet, make strides to improve your credit score.\n*   **Make sure you have an established credit history.** It's ideal to have at least two open accounts—preferably, one revolving account (such as a credit card or line of credit) and one installment account (such as an auto loan). If you don't, lenders may not believe you have enough repayment history to show that you're capable of paying back a loan on time. If you don't have a credit card yet, consider getting one and using it responsibly for a few months to help establish some positive credit history.\n*   **Have a verifiable income.** You'll need to show a lender documents like paystubs, tax returns and possibly bank statements to prove that you have enough money to comfortably pay your mortgage. Make sure you'll be able to have this documentation.\n*   **Calculate your DTI.** To do this, tally up your total recurring monthly debt (such as credit card payments, mortgage, auto loan and so on) and divide it by your gross monthly income (the total amount you make each month before taxes, withholdings and expenses). Multiply that number by 100 to get your DTI ratio as a percent. Keep in mind that you might not get approved for an FHA loan if your DTI is higher than 43%. Also, your mortgage payment ideally shouldn't be more than 35% of your income. If any of these are issues, work to lower your debt balances (or increase your income) before applying for an FHA loan.\n*   **Save for a down payment.** While you can nab a down payment as low as 3.5% with an FHA loan, it's smart to save up to at least 6% so you have enough funds to cover your closing costs. While FHA loans do give you the option of financing some of your closing costs, know that rolling them into your monthly payment will make your mortgage payment higher.\n*   **Choose the right type of FHA loan.** You might just need a basic FHA loan, but if you're buying a home that needs significant repairs or energy-efficient upgrades, consider the other types of FHA loans made specifically for these purposes.\n*   **Shop around before choosing a lender.** While lenders have to adhere to certain FHA guidelines, they're able to set their own interest rates. This means it pays to shop around and compare rates and fees at several different lenders to make sure you're getting the best deal. END
 TITLE: What Is an FHA Loan? CONTENT: See if Your Credit Score Qualifies\n----------------------------------\nWhile a lifetime of mortgage insurance payments isn't so fun, the perks of an FHA loan may far outweigh that drawback. For homebuyers with minimal savings or credit that needs improvement, an FHA loan may be within reach when a conventional loan is not. Make sure to check your free Experian credit score to see if you might be eligible for an FHA loan. If not, it's an indicator that it's the right time to start building or repairing your credit. END
 TITLE: What Is a Car Lease and How Does It Work? CONTENT: A car lease is an agreement between a lessor (the company that owns or will buy the car) and the lessee (the person who will pay to borrow the car).\nWhen you lease a vehicle, your monthly payment will be calculated based on the vehicle's depreciation—the change between its current value and its value at the end of the lease—plus interest and fees.\nYour lease agreement covers the following:\n*   How much you have to pay at the start of your lease.\n*   The lease's length—typically a lease lasts for two to four years.\n*   How much the car is currently worth and how much it's expected to be worth at the end of the lease.\n*   The fees you'll have to pay at the end of the lease.\n*   The \"money factor\" or rent charge, which is similar to an interest rate on an auto loan.\n*   Possible termination fees if you want to return the car before the lease ends.\n*   How many miles you're allowed to drive each year. Many leases only allow you to drive 10,000 to 15,000 miles annually; you may be required to pay a per-mile fee if you go over the limit.\n*   How the lessor defines normal wear and tear and how much you'll have to pay if there's excessive wear and tear. If you smoke in the car, have kids, transport pets or park on a busy street, you increase the chances of fee-inducing incidents.\n*   What happens if you miss a lease payment.\nSome of the rules may seem restrictive, but remember, you don't own the vehicle. The lessor keeps the title, and you have to return the car in good condition at the end. END
 TITLE: What Is a Car Lease and How Does It Work? CONTENT: What Are the Benefits of Leasing a Vehicle?\n-------------------------------------------\nLeasing a car may be more appealing than buying for several reasons:\n*   Assuming you're comparing leasing versus financing a purchase of the same car, the lease payments will generally be lower than the monthly loan payments.\n*   A lease may require a smaller down payment than purchasing a car with a loan.\n*   You may be able to afford a brand new car, complete with the latest bells and whistles, even if you couldn't afford to purchase the same car.\n*   If you want to always drive the latest-model cars, leasing could be less expensive than buying and selling a vehicle every couple of years.\n*   Your car will generally be covered by a manufacturer's warranty.\n*   You don't need to worry about selling or trading in the vehicle at the end of the lease. END
 TITLE: What Is a Car Lease and How Does It Work? CONTENT: What Are the Disadvantages of Car Leasing?\n------------------------------------------\nLeasing a car isn't for everyone, nor is it always a great idea:\n*   In the long run, leasing will cost more than buying and holding on to a vehicle.\n*   You're paying for the depreciation at the beginning the car's life, when it depreciates the most.\n*   There are many potential fees and penalties.\n*   If you don't need a car anymore, getting out of a lease can be expensive. And you might not be allowed to take the car with you if you move to a different state.\n*   You can't customize the look or features of your car during the lease unless you pay hefty penalties at the end.\n*   You won't have a car once your lease ends. END
 TITLE: What Is a Car Lease and How Does It Work? CONTENT: What Credit Score Do You Need to Lease a Car?\n---------------------------------------------\nAs with taking out an auto loan, leasing may be easier and less expensive if you have good credit. The cars you're allowed to lease may be limited if you have bad credit.\nGenerally, car leasing companies prefer customers who have a FICO® Score☉ of at least 700. Higher scores might also help you qualify for a lower monthly payment. This is because your credit can impact your money factor, the financing charge portion of your monthly payment.\nSome dealers offer leases on used vehicles, which may be easier to qualify for if you have bad credit. However, the lease may have high fees and lack many of the advantages that come with leasing a new car. For example, you may be responsible for all the repairs and maintenance during the lease.\nYou might be better off trying to improve your credit and finances and then looking for a lease. Or consider purchasing a used car that's a better match for your budget. END
 TITLE: What Is a Car Lease and How Does It Work? CONTENT: What to Consider Before Leasing a Car\n-------------------------------------\nThe language in a car lease agreement may be new to you and can sometimes be confusing. Here are some of the common terms and their definitions:\n*   **Acquisition fee**: Some dealerships or leasing companies charge an upfront fee for arranging the lease. You may be able to negotiate this fee or find a lease without an acquisition fee.\n*   **Buyout price**: You may be able to end the lease at any time by buying the car outright. The buyout price may decrease over time as the car depreciates.\n*   **Capitalized cost**: Often shortened to cap cost, this is the initial price of the car. You can negotiate the cap cost just as you would when buying a car.\n*   **Cap cost reductions**: You may be able to reduce your cap cost in various ways, such as negotiating the price, trading in a car or making a down payment. Because you pay for the depreciation between the cap cost and the residual value (the value of the car at the end of the lease), cap cost reductions can lead to lower monthly payments.\n*   **Disposition fee**: You may have to pay a disposition fee at the end of your lease to help cover the dealership's costs for getting the car ready to sell. Even if you can't negotiate the fee upfront, you may be able to negotiate it down when you return the car if you offer to buy the car, buy a car or start a new lease with the dealership.\n*   **Gap insurance**: Insurance that covers the difference between a car's residual value and what your auto insurance company pays out if the car is totaled. Some lessors require you purchase this and include the insurance premiums in your monthly payment.\n*   **Lease term**: The length of the lease, which is often two to four years.\n*   **Mileage allowance**: How many miles you're allowed to drive each year before the per-mile penalty begins. You can sometimes negotiate a higher mileage allowance, but may have to pay more each month as a result.\n*   **Money factor**: Also called a lease factor, lease rate or rent charge, the money factor determines part of your monthly payment. The money factor is often shown as a small decimal fraction, but you can convert it into an interest rate by multiplying the number by 2,400. For example, a cap rate of .0025 equals an interest rate of 6%.\n*   **Purchase option agreement**: Your lease may specify how much you can purchase the car for once your lease ends.\n*   **Residual value**: The value of the car at the end of the lease, which may be determined by a third party.\n*   **Security deposit**: You may have to pay a security deposit, which the lessor holds on to and can use to cover damage or extra-mileage charges when you return the car. If you don't owe any extra fees, you'll receive the full security deposit back. END
 TITLE: What Is a Car Lease and How Does It Work? CONTENT: Is Leasing a Car Right for You?\n-------------------------------\nDeciding between buying, leasing and waiting can be difficult, and you'll want to consider the pros and cons of each option.\nIf you're looking for a low down payment and low monthly payments, a lease may be best, especially if you want a new car with the latest technology. Otherwise, a used car could be an option.\nHowever, if you're focused on long-term savings and are fine driving the same car for many years, purchasing a car could be a better option than leasing. If you're looking to buy but are having trouble affording a new car, a certified pre-owned car offers some of the same advantages (such as a warranty) with a lower cost. END
 TITLE: What Is a Car Lease and How Does It Work? CONTENT: How to Lease a Car\n------------------\nIf leasing sounds like the right option for you, here are some steps to take to prepare:\n1.  Check your credit score to make sure you're likely to qualify to lease a new car.\n2.  Determine how much you can afford to put down and how much you can afford to pay each month. Don't forget to include insurance, registration, gas and any additional expenses that come with owning a car in your budget.\n3.  Start test-driving different cars to figure out the make and model you'd like to lease. If you're open to a few options, that could give you wiggle room during negotiations.\n4.  If you're trading in a car, try to find its current market value and make sure you'll receive enough to pay off your car loan balance. You could consider selling the car on your own and using the funds for a down payment on the lease. Or, negotiate the cap cost and trade-in separately to avoid potential confusion.\n5.  Consider your driving habits and how you expect to use the car to determine what mileage cap you want.\n6.  Shop around to see which dealership will offer you the best lease terms—a low down payment, low monthly payments and few fees. You could try to pit lessors against one another to get the best deal.\n7.  Sign a lease with the lessor that offers you the best deal. Be sure to read the entire agreement to make sure it reflects what was promised during the negotiations.\nPreparing to lease a car involves evaluating your finances and researching cars and lease terms. Doing so will not only help you get the best deal, but could help you get into the car of your dreams. END
 TITLE: What Is an Unsecured Personal Loan? CONTENT: How Unsecured Personal Loans Work\n---------------------------------\nAn unsecured personal loan works similar to other types of loans. You apply for a personal loan from a lender, such as a bank, credit union or online lender. The lender will review your application and likely check one of your credit reports and scores.\nBased on your creditworthiness, the lender will either approve or deny your application. If it approves your application, the rates and terms you're offered can depend on your creditworthiness and the amount of money you want to borrow.\nIf you're taking out a loan for a specific purpose, such as consolidating credit card debt, the lender might be able to send the money directly to the card issuers. But generally, the loan is sent to your account. You'll have to start repaying the loan once it's disbursed.\nUnsecured loans sometimes have restrictions in the loan agreement that forbid you from using the money for certain activities, such as starting a business, investing or paying educational expenses. But generally, you can use the money for anything else.\nSome choices may be more financially sound than others, though. For example, consolidating credit card debt can help you save money and lower your monthly bills. But taking out a large loan to pay for a vacation might leave you with the financial blues once you're back home and making payments. END
 TITLE: What Is an Unsecured Personal Loan? CONTENT: How Unsecured Loans Differ From Secured Loans\n---------------------------------------------\nYou may be able to apply for a secured personal loan rather than an unsecured personal loan. The big difference is that you must provide the lender collateral when you take out a secured loan. Your collateral is what \"secures\" the loan, and if you stop making payments, the lender can take the collateral to cover your debt.\nWith an auto loan or mortgage, two types of secured loans, the car or home is collateral for the loan. Title loans and pawn shop loans are two additional types of secured personal loans; these loans typically come with high interest and onerous terms, so borrowers usually turn to them as a last resort.\nYou can sometimes secure a loan with cash rather than property. For example, a credit-builder loan is a secured installment loan that uses money set aside in a savings account or CD as collateral while you pay off the loan. It could be a good option if you're looking to build credit for the first time. END
 TITLE: What Is an Unsecured Personal Loan? CONTENT: Advantages of Unsecured Personal Loans\n--------------------------------------\nThere are several reasons you may want to take out an unsecured personal loan rather than borrow money another way:\n*   They're often installment loans with a fixed interest rate, which can make it easier to plan and budget around.\n*   Depending on your creditworthiness, you could borrow a large amount of money without putting your personal property at risk.\n*   You may get approved for a lower interest rate than you could with other types of unsecured loans, such as a credit card.\n*   You can usually choose from different terms to alter the monthly payment.\n*   You can use the money to pay for a variety of expenses. END
 TITLE: What Is an Unsecured Personal Loan? CONTENT: Drawbacks of Unsecured Personal Loans\n-------------------------------------\nAn unsecured personal loan isn't always the best fit, though:\n*   Even for those with good credit, unsecured loans tend to have higher interest rates than secured loans.\n*   You might not get approved for as much money as you want to borrow.\n*   If you don't have good credit or a high income, you may only get approved for an unsecured loan with a high interest rate.\n*   Some lenders charge origination fees on unsecured loans, which can be 1% to 6% of the loan amount. END
 TITLE: What Is an Unsecured Personal Loan? CONTENT: How Unsecured Personal Loans Can Affect Your Credit\n---------------------------------------------------\nAs with other types of installment loans, applying for and taking out an unsecured personal loan can impact your credit in several ways:\n*   Applying for an unsecured loan will add a hard inquiry to your credit report, which could hurt your credit scores, even if your application is denied. Hard inquiries stay on your report for two years, but their impact on your scores decreases over time.\n*   If you're approved, the lender will typically report your new loan and payments to the credit bureaus. This can be a good or bad thing for your credit, depending on how you manage your payments.\n*   If you don't already have an installment loan in your credit history, the personal loan may add to your credit mix (your experience managing different types of credit accounts), which could improve your scores.\n*   As you repay the loan, your on-time payments could build a positive credit history and improve your scores. However, making late payments or letting your loan go delinquent will likely hurt your scores.\n*   If you use the personal loan to consolidate credit card debt, you can lower your credit utilization rate, or amount of available credit you're using, which may improve your scores. END
 TITLE: What Is an Unsecured Personal Loan? CONTENT: How to Qualify for an Unsecured Personal Loan\n---------------------------------------------\nYour creditworthiness can be particularly important when you're applying for an unsecured personal loan because the lender is offering you the money based solely on your promise to repay the debt.\nGenerally, your application will be evaluated based on:\n*   **Your credit history**: Lenders use your credit reports to learn how long you've been utilizing credit and whether you've paid your bills on time. If you're not sure what your credit history looks like, you can check your Experian credit report for free.\n*   **Your credit scores**: Lenders also consider your credit scores and may have a minimum credit score requirement. If your scores don't fall in the good to excellent ranges, consider trying to improve your credit scores before applying if you don't need a loan right away.\n*   **Your debt-to-income (DTI) ratio**: Your DTI ratio shows how your monthly income compares to your monthly bills. Lenders want to make sure you have enough income to cover your bills and repay the loan. Increasing your income and paying down debts can improve your DTI.\nSome lenders focus on specific types of borrowers, such as those with high incomes and excellent credit or those who've had credit troubles in the past. But even within the same group, each lender may have its own criteria for evaluating an application.\nLenders often publish some of their criteria online and advertise their interest rate range as well as minimum and maximum loan amounts. Comparing lenders and reviewing this information can help you determine which lender might be a good fit.\nSometimes you can apply for a preapproval, which will result in a soft inquiry (the type that doesn't hurt your credit scores) and could give you a sense of whether you'll get approved and your potential rate. But you'll generally still need to submit a complete application, and agree to a hard inquiry, before you receive an official loan offer. END
 TITLE: How to Buy a Used Car CONTENT: Check Your Credit Reports and Scores\n------------------------------------\nIf you're planning to get an auto loan to buy your used car, check your credit first. Start by getting your credit report from one of the three major credit bureaus (Experian, TransUnion or Equifax), checking it and correcting any errors that you find. You can also check your Experian credit score and take steps to improve your score if necessary. The better your credit score, the better terms you'll be able to get on an auto loan and the more leverage you'll have when negotiating with the dealer.\n#### Know What You Can Afford\nYou probably have an idea of how much you want to spend on the car in total and what you'd like your monthly payments to be. Research average car loan interest rates and terms online to find terms that work for your financial situation. If you want to spend about $10,000 on the car and you can make a down payment of $2,000, you'll need a car loan of about $8,000. If you want to have payments of $300 a month or less, plug $8,000 into an auto loan calculator and see if that's realistic.\nThen do some online research to get an idea of the price ranges for the vehicles you have in mind. You can check local dealers' stock, automotive classified ads, or Kelley Blue Book values to get estimates and see if your budget will cover the car you want. END
 TITLE: How to Buy a Used Car CONTENT: Shop Around for Auto Loans\n--------------------------\nFinancing your car through the dealer isn't always the best way to go; you can often get better terms and interest rates from a third-party lender. Before you actually start visiting dealerships, shop around for auto loans from banks, credit unions and online lenders. Also take time to learn more about how to get a car loan.\nGetting preapproved for a car loan can give you more bargaining power at the dealership. It also gives you a firm budget to work with so you know exactly how much you can spend. Fill out a preliminary application with a lender; if you're preapproved, you'll get an offer of credit including the loan size, terms and interest rate the lender is willing to offer you. To be sure you receive the best terms, get preapproved by more than one lender. Just make sure to complete all the applications within about 14 days because each loan application counts as a separate hard inquiry into your credit history, and too many hard inquiries can hurt your credit scores. However, when you consolidate all your applications into a 14-day period, they're treated as one hard inquiry, limiting the impact on your credit score. END
 TITLE: How to Buy a Used Car CONTENT: Get a Vehicle History Report\n----------------------------\nYou've got your budget, you're preapproved for your car loan, and you think you've found your dream used car. Not so fast. Before you actually check out the car, get a vehicle history report to uncover any potentially costly or dangerous problems with the vehicle. You'll need the car's vehicle identification number (VIN), which you can get from the seller.\nHere's what to look for in a vehicle history report:\n*   **Accident history**: This lists any major reported accidents involving the car. If the airbag has deployed or the car suffered structural damage, it's probably best to steer clear of the vehicle.\n*   **Title status**: Avoid cars with titles such as \"junk,\" \"fire damage,\" \"flood damage,\" \"rebuilt\" or \"lemon law buyback,\" all of which are self-explanatory. A \"salvage title\" indicates that an insurer deemed the car a total loss, but someone fixed it up and put it back on the road. Also avoid \"police use\" or \"taxi use\" titles, which indicate heavy usage. Look for a car with a clean title.\n*   **Inspection and registration history**: These indicate whether the car has been registered with state DMVs and gone through state-required inspections, such as smog checks. If a car has gone unregistered for long time periods, this may be a sign that it was stolen or totaled at some point.\n*   **Odometer reading**: Sometimes unscrupulous sellers turn back a car's odometer to make it look newer; the vehicle history report shows the true odometer reading.\n*   **Ownership and sales information**: How many times has the vehicle changed hands? One-owner vehicles tend to be better maintained than vehicles that have had several different owners. Be wary of cars that have had multiple owners in different states—this often indicates the car was totaled or flood-damaged and moved to a new state to wipe its title clean.\n*   **Recalls**: This indicates any recalls of the vehicle and whether the required repairs were made. An open recall isn't a deal-breaker; just make sure to get it taken care of.\n*   **Liens**: Outstanding liens on the vehicle will be listed. Look for a vehicle clear of liens.\n*   **Maintenance**: Sometimes vehicle history reports include maintenance; you can also ask if the seller has a maintenance record to show you.\nOnce the vehicle you're considering has passed the vehicle history test, look it over thoroughly and take it for a test drive. Then take it to an independent mechanic for a thorough inspection before making an offer. END
 TITLE: How to Buy a Used Car CONTENT: Negotiate the Price and Make a Deal\n-----------------------------------\nReady to start bargaining? It's much easier to haggle over the price of a used car than a new one, since there's no fixed MSRP. Use pricing from Kelley Blue Book or Edmunds' car appraisal tool to estimate the car's value. Simply input some basic information, such as the make, model, mileage and condition, to get an estimate. Subtract 10% to 20% from those prices and start by offering the seller that amount.\nIf you're already preapproved for a car loan or can pay in cash, use that as a bargaining chip. Did your mechanic find fixable problems with the car? Get an estimate of the repair costs and use that to bargain down the price of the car. END
 TITLE: How to Buy a Used Car CONTENT: Things to Watch Out for When Buying a Used Car\n----------------------------------------------\nThe real cost of a used car is more than just your monthly payment. Remember to factor in expenses such as maintenance, gas and insurance, keeping in mind that an older car is more likely to need costly repairs than a new one.\nBe wary of any dealership or seller that isn't completely honest with you. Sellers should be willing and happy to show you the vehicle's service reports, let you take it to your mechanic for inspection, and answer any questions. A seller that won't do these things probably has something to hide.\nFinally, watch out for \"buy here, pay here\" (BHPH) auto dealerships. Traditional dealerships pass your purchase contract on to an auto lender that provides a loan. BHPH dealers finance your purchase themselves. Because their lending criteria are looser, BHPH dealers primarily appeal to people with bad credit who can't get auto loans anywhere else. That also means they charge very high interest rates—often up to the maximum your state allows—and may also pile on additional fees. If you're having trouble getting an auto loan, there are better ways to get a car with poor credit than a BHPH dealership. END
 TITLE: How to Buy a Used Car CONTENT: Impacts to Your Credit\n----------------------\nLike any other type of loan, a car loan can impact your credit either positively or negatively, depending on how you handle it. Your lender will alert the major credit bureaus of your new loan and report your payment history. Making your payments on time will help improve your credit score; missing a payment will hurt it. Miss too many payments, and you'll be back to taking the bus or bumming rides from friends when your used car gets repossessed.\nBuying a used car can be a more affordable alternative to buying a new car. The key is to take your time. Assess your budget, arrange your financing and inspect the car thoroughly before you make an offer. By educating yourself and being prepared, you can find the car of your dreams at a price that won't drive you into the red. END
 TITLE: Can I Get a Loan to Pay Off Medical Debt? CONTENT: How Medical Debt Affects Your Credit\n------------------------------------\nNormally, medical debt and the payments you make on that debt aren't included on your credit report the way your credit card, car loan or mortgage payments are. Even if the medical provider's internal collection department starts calling you, the debt still won't show up on your credit report. Where you can get into trouble is if the medical provider sells your debt to a third-party collection agency.\nIf you don't pay your medical debt and it ends up being sent to a collection agency, you have a 180-day grace period before the medical collection account shows up on your credit report. The grace period gives you a chance to contact the doctor or hospital and create a plan for paying off the debt. END
 TITLE: Can I Get a Loan to Pay Off Medical Debt? CONTENT: Is It a Good Idea to Pay Off Medical Bills With a Loan?\n-------------------------------------------------------\nWhen you're worried about a hefty medical bill, getting a personal loan, home equity line of credit or second mortgage to wipe out the debt may seem like the perfect solution. However, paying off debt by taking on more debt is rarely a good idea. Once you add up the interest and fees that lenders charge, using a loan to pay off medical debt will cost you more in the long run.\nAlways try to avoid these actions when faced with medical debt:\n*   **Ignore the debt and let it go to collections**: If you don't pay the medical bill when it's due, you'll receive a notice from the provider that your bill is overdue. The provider will continue to warn you that your bill is overdue and in danger of becoming delinquent. If you still don't respond to the notices or pay the bills, the provider will either have their internal collection department contact you or sell the debt to a third-party collection agency that will begin contacting you. Don't stick your head in the sand and ignore a medical bill hoping it will go away. Once an account goes to collections, it has an extremely negative effect on your credit score. FICO® and VantageScore® credit scoring formulas weigh medical collection accounts less heavily than other types of collection accounts, but even so, the medical collection account will remain on your credit history for seven years from the date the medical bill first became delinquent.\n*   **Put the debt on an existing credit card**: Using a credit card to pay off medical debt is likely to dig you even deeper into a financial hole than using a loan. That's because credit cards generally have much higher interest rates than personal or home loans. Unless you can afford to pay off the entire credit card balance in a month or two by tapping into savings or borrowing from a family member, this can be a very costly way to reduce your medical debt. Plus, credit card debt appears on your credit report immediately, and if you have trouble paying off the credit card balance, your credit score could suffer. END
 TITLE: Can I Get a Loan to Pay Off Medical Debt? CONTENT: Are There Other Loan Options to Pay for Medical Bills?\n------------------------------------------------------\nIf you don't have health insurance, you're likely to pay more in medical bills because you're responsible for the full cost of your care. Whether you have insurance or not, there are two other options for managing medical bills.\n### Payment Plan\nMost medical providers are happy to work out a payment plan with you if you can't pay your medical bill in full. (Like any business, medical providers would rather get paid over an extended period than not get paid at all.) Payment plans break your total medical debt into monthly installments, similar to a car payment.\nThe best time to discuss payment plans with your medical provider is before you have a procedure done, but you can also contact your provider after receiving your bill to talk about payment plan options. Before agreeing to a payment plan, be sure to ask about any interest, fees or additional costs so you know exactly how much you'll pay.\nSome providers offer income-driven hardship plans. This is a special type of payment plan for low-income patients. Income-driven hardship plans forgive part of your medical debt and divide the remaining amount into monthly installments so the debt is manageable for your income level. Talk to your provider or medical facility to see if they offer income-driven hardship plans.\n### Medical Credit Cards\nMedical credit cards are special cards that can be used only for medical costs and sometimes only for certain procedures. Ask your medical provider whether they accept medical credit cards and if so, which ones. You can apply for medical credit cards online or, in some cases, at your provider's office. Like medical procedures themselves, medical credit cards have some inherent risks you should know about. Many medical credit cards offer zero-interest financing for six, 12, 18 or 24 months; others offer lower interest financing on purchases over a certain amount.\nZero interest financing can help you manage your medical debt, but you must be confident you can pay the balance in full before the zero interest period ends. When the time is up, all the deferred interest retroactive to the purchase date will be added to your balance at once. CareCredit, one of the most popular medical credit cards, currently charges 26.99% interest, so getting hit with 24 months of interest on a hefty medical bill could leave you deeper in debt than when you started. As with any credit card, medical credit card payments are reported to credit bureaus. This can help to boost your credit score if you make your payments on time, but can hurt your credit score if you can't. END
 TITLE: Can I Get a Loan to Pay Off Medical Debt? CONTENT: Ways to Pay Off Medical Debt Without a Loan\n-------------------------------------------\nIf none of the above options for paying off medical debt works for you, consider these alternatives.\n*   **Hire a medical bill advocate**: Medical bill advocates work on your behalf to find and remove errors and overcharges on medical bills; contact medical providers and insurance companies for you; and negotiate reduced payments, payment plans or even loan forgiveness. People who have massive medical bills or are too ill to do the legwork to negotiate the health care billing system often use medical bill advocates to cut through the red tape. Medical bill advocates either charge an hourly rate or take a percentage of the money they're able to save you.\n*   **Negotiate costs on your own**: You don't need to possess the persuasive powers of a professional salesperson to negotiate with a medical provider. Being polite, flexible and reasonable will often do the trick. Remember, providers would rather get paid something than nothing. Ask your provider's billing department if they will accept monthly payments or reduce the total you owe if you pay the reduced balance in full. According to Consumer Reports, many providers reduce fees for patients who pay directly instead of having care billed through their health insurance. If you don't have health insurance, you may be able to ask for that lower price too.\n*   **Medical bill forgiveness**: If you have a severe issue such as a disability that leaves you unable to earn income and pay your medical debt, your provider may be willing to forgive some or all of your debt. While it's difficult to get your entire debt forgiven, it's worth talking to the provider to see what they can do.\n*   **Financial assistance or charity care programs**: Under the Affordable Care Act, nonprofit hospitals are legally required to provide financial assistance for people with incomes below a certain level. Many for-profit hospitals and medical providers do the same. These financial aid programs are usually limited to essential medical services and require providing proof of income to qualify. Visit the provider's website or call their billing department to see if your provider offers financial help with medical bills. If they don't, ask if they know of any local organizations that help low-income consumers with medical bills. END
 TITLE: Can I Get a Loan to Pay Off Medical Debt? CONTENT: To Manage Medical Debt, Be Prepared\n-----------------------------------\nThe best way to manage medical debt is to avoid it in the first place by planning ahead. Whenever possible, talk to your medical provider and insurance company to find out what your cost will be before you undergo a procedure. If the costs are more than you can easily afford, talk to your provider about ways to pay.\nOf course, you can't plan for an accident or major illness. But you can prepare for these risks by learning what your health insurance covers and choosing the medical provider that minimizes your out-of-pocket costs (such as an in-network doctor or hospital). Armed with this information, you'll be ready to make smart decisions about both your medical care and its impact on your budget. END
 TITLE: Do Credit Unions Offer Better Car Loans? CONTENT: What Makes Credit Union Auto Financing Different?\n-------------------------------------------------\nWhen it comes to financing your car, there are several benefits of using a credit union, as opposed to a dealership or bank.\n*   You may have a better chance of getting approved for a loan. Because they are smaller, focused on their communities and owned by their members, credit unions tend to be more understanding of members who have less-than-perfect credit scores. This can make a credit union a better option than a bank if you have poor credit or have a thin credit file (few or no credit accounts and a limited credit history).\n*   Credit unions generally offer lower interest rates than banks or auto dealerships. Because credit unions aren't profit-focused the way banks are, they don't need to make as much money on your loan. The average interest rate for a 48-month new car loan from a credit union was 3.75% in March 2019, compared with 5.03% for the same loan from a bank, according to the National Credit Union Administration.\n*   Banks and dealerships typically require you to take out a minimum auto loan amount. Credit unions often have lower minimum loan requirements or none at all. For instance, a $5,000 loan to buy a used car might be too small for a bank to finance, but not for a credit union.\nThere are also a few downsides to financing a car through a credit union.\n*   You have to be a credit union member to apply for a loan. If you're already a member, that's not a big deal. If you're not a member, chances are there's a credit union you could join. You may be able to join a credit union based on your employer; your geographic location; or membership in a place of worship, school or homeowners association. There are credit unions for government employees, union members, teachers, firefighters, members of the military or military veterans, postal workers, and faculty and employees of colleges and universities. Plus, most credit unions allow members' family members to join too. If your mom belongs to a credit union for school teachers, you can join even if you're not a teacher. You can use the National Credit Union Association (NCUA) Credit Union Locator to find credit unions that may be open to you.\n*   Smaller credit unions usually don't offer all the bells and whistles that bigger banks do. For instance, a credit union may not offer online banking or a mobile banking app, may not have ATMs and may have only a few branch locations. This can be inconvenient if you're using a credit union for your daily banking needs, but if you're using a credit union primarily to get an auto loan, it shouldn't be a major problem. END
 TITLE: Do Credit Unions Offer Better Car Loans? CONTENT: What Credit Score Do I Need to Get a Car Loan With a Credit Union?\n------------------------------------------------------------------\nUsing the FICO® Score☉ credit scoring model, a credit score of 669 or less is considered fair or poor and can make it difficult to get a car loan from a bank or auto dealership. However, when you apply for a car loan from a credit union, a poor or fair credit score isn't necessarily a dealbreaker.\nAs member-owned nonprofits, credit unions can focus more on helping their members than on making a profit. That means they're usually more flexible than banks or car dealerships when it comes to approving loans. (Even at a credit union, however, a better credit score still translates into better loan terms.) END
 TITLE: Do Credit Unions Offer Better Car Loans? CONTENT: When Does It Make Sense to Finance a Car Through a Credit Union?\n----------------------------------------------------------------\nWhen should you choose credit union auto financing instead of getting a loan from a bank or auto dealership?\n*   If you're just beginning to build credit, have fair to poor credit or have a thin credit file, a credit union may be more likely to approve you for an auto loan than a bank or auto dealership.\n*   If you already belong to a credit union, it makes sense to see how their loan terms compare to those of banks or dealerships. Getting preapproved for an auto loan from your credit union before you visit the dealership can give you more negotiating power.\n*   Managing an auto loan from a credit union can be less convenient than managing a loan from a dealership or bank. If the credit union doesn't have online banking options, for example, you'll have to mail in your loan payments by check. The trade-off is a lower interest rate on your loan. If being able to make your loan payments online, use a mobile app to check your loan balance, or easily visit a bank branch is really important to you, look for a credit union that offers these amenities. END
 TITLE: Do Credit Unions Offer Better Car Loans? CONTENT: Get the Best Auto Loan for Your Credit Score\n--------------------------------------------\nWhen making any financial decision—including taking out an auto loan—you should always explore all your options. Checking your credit score from Experian before applying for a loan will help you choose the best lender for your needs, whether that's a bank, an auto dealership or a credit union. END
 TITLE: How a Personal Loan Can Affect Getting a Mortgage CONTENT: How Do Personal Loans Work?\n---------------------------\nPersonal loans are a form of installment credit that offer borrowers access to the full loan amount upfront in exchange for regular installment payments over a set repayment term.\nOne key characteristic of personal loans that sets them apart from many other loan types is that most of them are unsecured, which means there's no collateral involved. Also, with few exceptions, borrowers can use personal loan funds for just about anything they want.\nIn return, personal loans typically charge higher interest rates than secured loans, such as mortgage and auto loans, so they're not always the best option if you're planning a large purchase. END
 TITLE: How a Personal Loan Can Affect Getting a Mortgage CONTENT: Can a Personal Loan Impact My Mortgage Application?\n---------------------------------------------------\nAny debt you have listed on your credit reports can affect your ability to get a mortgage loan. There are two primary things lenders will look for with personal loans: how you've managed the debt and how it affects your debt-to-income ratio.\n### How You've Managed the Debt\nMaking on-time monthly payments is crucial with any type of debt, especially if you're planning to apply for a mortgage loan. A mortgage is a long-term commitment for both you and the financial institution, so if you've missed any payments on your personal loan, you may qualify at a higher rate or not at all.\nIf you've managed to pay all your bills on time, however, this may have improved your credit score over time, as well as your chances to get approved for a mortgage.\n### Your Debt-to-Income Ratio\nWhen determining how much you qualify to borrow, mortgage lenders will look at your back-end debt-to-income ratio (DTI), which is your total monthly debt payments divided by your monthly gross income.\nFor reference, your front-end DTI is how much of your gross income goes toward housing costs only. If your back-end DTI ratio is very low, the personal loan payment may not make much of a difference. However, most lenders prefer a back-end DTI below 36%, and if yours is higher than that with the personal loan payment, you may not qualify for as much as you want or need. END
 TITLE: How a Personal Loan Can Affect Getting a Mortgage CONTENT: What if I'm Currently Paying Off a Personal Loan?\n-------------------------------------------------\nIf you've already taken out a personal loan and are considering applying for a mortgage, the best thing you can do is to continue making your payments on time.\nIf you're close to the end of your repayment term and can afford to pay off the remainder before applying, eliminating the debt could improve your chances of getting the loan amount you're looking for. If you can't, however, just focus on maintaining a positive payment history.\nAlso, look for other ways to improve your chances of getting approved with favorable terms. END
 TITLE: How a Personal Loan Can Affect Getting a Mortgage CONTENT: How Can I Increase My Chances of Getting a Mortgage?\n----------------------------------------------------\nIn most cases, having a personal loan won't make or break your chances of getting approved for a mortgage. If you're worried, however, there are plenty of other things you can do to increase your chances.\nFor starters, work on getting your credit ready for a mortgage by checking your credit reports and scores to see if there's anything you need to address before you apply. If you find any issues, waiting until you can improve your credit could save you thousands, if not tens of thousands, over the life of a mortgage loan.\nSecond, avoid taking on new credit leading up to your mortgage application. The last thing you want to do is to increase your DTI even further. And if you have time, consider working on paying down some loans and credit cards to potentially decrease your DTI.\nFinally, consider taking some time to increase your down payment amount. The more money you put down, the less of a risk you pose to mortgage lenders, potentially increasing your approval odds. END
 TITLE: How a Personal Loan Can Affect Getting a Mortgage CONTENT: Avoid Jumping Into a Mortgage Too Soon\n--------------------------------------\nHomeownership is an exciting prospect, and it can be easy to get caught up in the emotional side of taking that big step in life. But if you commit to a mortgage loan before you're financially ready, homeownership could become more of a burden than a blessing.\nMake it a priority to check your credit score and work on improving it long before you apply. Also, create a budget to determine how much you can actually afford to pay each month, keeping in mind that what the lender offers you may actually be out of your price range. As you do so, don't forget about other housing costs, such as private mortgage insurance, property taxes, homeowners insurance, repairs, maintenance and more.\nAs you approach getting a mortgage loan this way, you'll have a much better chance of getting approved for one and being able to make the payments each month. END
 TITLE: What Is a Bridge Loan? CONTENT: How Bridge Loans Work\n---------------------\nIf you currently own a home and are looking to buy a new one, the process can be tricky. In an ideal world, you'd sell your current home just in time to use the proceeds to make a down payment on the new one. But if that doesn't happen, the transitional process can become extremely stressful—unless you get a bridge loan.\nA bridge loan is a short-term loan—repayment terms are typically less than 12 months—that can provide you with the cash you need to buy your new home whether or not you've managed to complete the sale of your old one. Here's how the process might work:\n1.  Gain access to the equity in your current home through a bridge loan.\n2.  Make a down payment on your new home using the proceeds from the loan.\n3.  Sell the old home and use the profit from the sale to pay off the bridge loan.\nWith a bridge loan, you can typically qualify for up to 80% of the loan-to-value ratio of your current home. So if you don't have at least 20% equity, you may not qualify right off the bat. If you do, but just barely, you may not get enough proceeds from the loan to make it worth your while.\nBridge loans typically charge high interest rates compared with other home equity financing options, primarily because they're short-term loans. As a result, you may get an interest rate that's a few percentage points higher than on a conventional mortgage or home equity loan. Fees can also be relatively high, increasing the total cost of credit.\nFinally, bridge loan lenders tend to have high eligibility criteria, both in terms of credit and debt-to-income ratios, especially if there's a chance you'll have two mortgage payments for a while. END
 TITLE: What Is a Bridge Loan? CONTENT: Benefits and Downsides of Bridge Loans\n--------------------------------------\nThere are both advantages and disadvantages of using a bridge loan you make transitioning to a new home go more smoothly. Here's what to consider.\n### Pros\n*   **You don't have to move twice**: If you sell your old home before closing on the new one, you'll likely need to find temporary housing until you complete the process. A bridge loan simplifies the process and can get you into the new home directly.\n*   **You can make a stronger offer**: An alternative to using a bridge loan is making a contingent offer on a new house. This means that your offer to buy is contingent upon you selling your current home. Unfortunately, these offers make for a lot of uncertainty for sellers, so they'll be more likely to take an offer from another buyer without the contingency. If you have a bridge loan, you can eliminate the contingency altogether.\n*   **It can help you qualify for a lower interest rate**: The higher your down payment on a mortgage, the less risk you pose as a borrower. As such, you may qualify for a lower interest rate if you can provide a big down payment. If your current home isn't sold yet, a bridge loan can give you that high down payment and potentially a lower interest rate.\n### Cons\n*   **It can be expensive**: Between fees and high interest rates, a bridge loan can be more expensive than alternatives, including a home equity loan.\n*   **It's not easy to qualify for**: Because you're not selling your current home yet, you may be making two mortgage payments for at least a month or two, and possibly longer. With that kind of debt burden, bridge loan lenders may have strict credit and debt-to-income ratio requirements for those who apply.\n*   **You may not get enough**: Bridge loan lenders typically offer loans of up to a combined loan-to-value ratio of 80%. This means that your current mortgage loan and the bridge loan cannot total more than 80% of the home's fair market value. If your loan-to-value ratio is already above 80% or it's not far below it, you may not get the money you need, making it an unnecessary expense. END
 TITLE: What Is a Bridge Loan? CONTENT: When to Use a Bridge Loan\n-------------------------\nConsidering both the perks and pitfalls of using a bridge loan, there are some clear situations where it may or may not be good to apply for one.\nSpecifically, a bridge loan may be a good idea when:\n*   You qualify based on creditworthiness and equity requirements.\n*   You can't afford a big enough down payment without the equity you have in your current home.\n*   You're in a seller's market and need the strongest offer possible.\n*   Sellers in the area you're looking to buy don't accept contingent offers.\n*   You anticipate selling your current home within the next few months.\n*   You want to avoid moving twice or feeling stuck in limbo with a temporary housing situation.\nOn the flip side, a bridge loan may not be worth it if:\n*   You can qualify for a lower interest rate with a home equity loan.\n*   You're not sure when you're going to be able to sell your current home.\n*   You don't need a bridge loan to make a sufficient down payment on your new home.\n*   You're not sure you can handle making two mortgage payments simultaneously and have a bridge loan on top of them.\n*   You're in a buyer's market where contingent offers are acceptable and expected.\n*   You've managed to time things perfectly to sell your current home and use the sales proceeds to buy the new home. END
 TITLE: What Is a Bridge Loan? CONTENT: Credit Score Needed for a Bridge Loan\n-------------------------------------\nThere's no hard and fast rule for what your credit score needs to be to get approved for a bridge loan—all lenders have varying creditworthiness criteria. That said, you can generally expect lenders to require a credit score that's considered good or excellent to get approved.\nAlso, you'll likely need a low debt-to-income ratio to prove your ability to manage two mortgages and a bridge loan for a short period. For reference, many mortgage lenders want to see your monthly housing costs for one mortgage to be 28% of your gross monthly income or less. If your ratio is around that figure on your current home, you may have a hard time getting a bridge loan. END
 TITLE: What Is a Bridge Loan? CONTENT: Alternatives to a Bridge Loan\n-----------------------------\nIf you're on the fence about whether a bridge loan is right for you, there are a couple of alternatives to compare it with before you make a decision.\n### Home Equity Loan\nA home equity loan is also based on the equity you have in your home but has a few advantages over a bridge loan, including lower interest rates, lower loan costs and longer repayment terms.\n### Home Equity Line of Credit\nA home equity line of credit (HELOC) is similar to a home equity loan but provides a revolving line of credit instead of a lump-sum loan with installment payments. HELOCs typically charge variable interest rates that are even lower than what you can get with a home equity loan, which may be perfect if you're planning to pay back the debt quickly.\nJust keep in mind that some HELOCs charge a prepayment penalty if you pay off the balance early.\n### 80-10-10 Loan\nIf you have enough cash on hand to make a 10% down payment on your new home, this loan can help you get to an 80% loan-to-value ratio and avoid private mortgage insurance. With this loan, you get a first mortgage for 80% of the sales price of the home and a second loan for 10% of the sales price, leaving the final 10% coming from your cash reserves.\nIt's not ideal to get started in your new home with two loans, but it can be less expensive and less stressful than a short-term bridge loan.\n### Sell Your Home With a Contingency\nJust as buyers can make an offer with a contingency, sellers can do something similar. One option is the \"home of choice\" contingency, which means the sale of your current home to a buyer is contingent upon you finding a new home to purchase.\nThe second one is a \"rent back\" contingency, which allows the sale to go through with the provision that you can rent the home from the buyer for a set period while you complete the buying process on a new home.\nBoth of these contingencies can potentially help the transition process go more smoothly. But if it's a buyer's market, you may have a hard time convincing anyone to agree to them. END
 TITLE: What Is a Bridge Loan? CONTENT: Take Your Time to Make a Decision\n---------------------------------\nWhether you opt for a bridge loan or one of the suggested alternatives, it's important to take your time before pulling the trigger on any of them. Check your credit score to see where you stand and what you can reasonably qualify for, then run the numbers on each for your specific situation to determine which one is the best option for you. END
 TITLE: Does Paying Off a Car Loan Early Hurt Your Credit? CONTENT: Whenever you make a major change to your credit history—including paying off a loan—your credit score may drop slightly. If you don't have any negative issues in your credit history, this drop should be temporary; your credit scores will rise again in a few months. After it's paid off and the account is closed, your car loan will remain on your credit report for up to 10 years, and as long as you always made your payments on time, the loan will continue to have a positive effect on your credit history.\nSo what's the problem with paying off your car loan early? Even though closed accounts still affect your credit score, open positive credit accounts have more of an impact than closed ones. That's because open accounts show lenders how well you're managing your credit right now—not in the past.\nIf you're trying to establish credit or improve your credit score, keeping a car loan open could be more helpful than paying it off. For example, if you have a thin credit file (meaning you only have a few credit accounts), a car loan will add to the number of accounts you have, helping to build your credit history. A car loan also helps to improve your credit mix by diversifying the types of credit you have. Having both revolving credit (such as credit cards that allow you to carry a balance) and installment credit (loans with a fixed monthly payment) can improve your credit mix, which can help boost your credit score. END
 TITLE: Does Paying Off a Car Loan Early Hurt Your Credit? CONTENT: When Is It a Good Idea to Pay Off Your Car Loan Early?\n------------------------------------------------------\nThere are some situations when paying off your car loan early may be a smart move:\n*   **If you have a high interest car loan**: If you have a 60-, 72- or even 84-month auto loan, you'll be paying a lot of interest over the life of your loan. Paying off the loan early can reduce the total interest you pay. Before doing so, make sure your lender doesn't charge a prepayment penalty for paying off the loan early. (If you have a _precomputed interest_ loan, the total amount of interest you'll pay was calculated and fixed at the start of the loan, so even if you pay off the loan early, you still have to pay that precomputed interest.)Refinancing a high interest auto loan for one with a lower interest rate is an alternative to paying it off early. If your credit score has improved or interest rates have dropped substantially since you bought the car, refinancing can reduce your payments, and your credit score can still benefit if you make those payments on time.\n*   **When you need to improve your debt-to-income ratio**: Some lenders consider your debt-to-income (DTI) ratio—the total amount you owe every month compared with the total amount you earn—when deciding whether to offer you credit. In general, lenders like to see a DTI of 43% or less, but many lenders prefer ratios below 31%. (Learn more about calculating your debt-to-income ratio.) If you're planning to apply for a home mortgage in the near future, but your DTI is higher than lenders like to see, paying off your car loan early could boost your chances of qualifying for a mortgage.\n*   **When you have additional open accounts**: Do you have lots of other credit accounts and a good credit mix (such as a mortgage, a student loan and several credit cards)? If you have a long credit history with diverse types of credit, paying off your car loan early should only cause a temporary dip in your credit score. END
 TITLE: Does Paying Off a Car Loan Early Hurt Your Credit? CONTENT: When Is It Better to Keep the Loan?\n-----------------------------------\nHere are some situations when you're better off keeping your car loan:\n*   **When you have a low interest loan or 0% financing**: On average, interest on car loans is lower than on many other types of debt. For example, current credit card interest rates average about 17.75%, while car loan interest rates average about 4.75%. If you're carrying credit card balances, paying them down makes more financial sense than paying off a car loan early. Were you lucky enough to get a 0% financing deal when you bought your car? Then there's really no benefit to paying the loan off early. If you've got extra cash burning a hole in your pocket and no other debt, invest it (or save it for a down payment on your next car).\n*   **When you don't have an emergency fund**: Experts recommend keeping three to six months' worth of expenses in an emergency fund in case you lose your job or are hit with unexpected expenses. If you don't yet have an emergency fund, any extra cash should go towards establishing one, rather than paying off your car loan early.\n*   **When you're close to the end of the loan**: If you only have a few more loan payments to go, paying off your car loan early won't save you a significant amount of interest. In this case, it's better to keep the loan, make those remaining payments on time, and benefit from the positive effect this will have on your credit score. (The only exception: If you want to sell your car to a private party, having title to the vehicle will make it easier to do so.) END
 TITLE: Does Paying Off a Car Loan Early Hurt Your Credit? CONTENT: To Pay or Not to Pay?\n---------------------\nShould you pay off your car loan early? To make the right decision, consider your credit history, credit score and credit mix; the interest rate on the car loan and potential savings; and whether the money you'd spend paying off the car loan in a lump sum would be better spent elsewhere, such as paying down high interest credit card balances or building an emergency fund. If you're not sure what your credit score is, get a free credit report to check your credit history, credit score and credit mix. END
 TITLE: What Is Student Loan Forgiveness and How Do I Qualify? CONTENT: How Do Student Loan Forgiveness Programs Work?\n----------------------------------------------\nThere are a few different types of student loan forgiveness programs student loan borrowers can take advantage of, but they only apply to federal student loans. Each program has its own set of requirements and how much forgiveness it offers. END
 TITLE: What Is Student Loan Forgiveness and How Do I Qualify? CONTENT: What Are the Benefits of Student Loan Forgiveness Programs?\n-----------------------------------------------------------\nStudent loans can be financially crippling for many college graduates, so qualifying for a forgiveness program can make a huge difference in eliminating some or all of that burden. Also, two of the programs allow for reducing your monthly payments based on your income, so it can also relieve current budget issues.\nEven if you only qualify for $5,000 in student loan forgiveness through the Teacher Loan Forgiveness program, that saves you thousands of dollars in principal and interest payments. END
 TITLE: What Is Student Loan Forgiveness and How Do I Qualify? CONTENT: Are There Downsides to the Student Loan Forgiveness Programs?\n-------------------------------------------------------------\nEach student loan forgiveness program has drawbacks, and it's important to understand them before you start the process.\nWith PSLF, for instance, you may be giving up a higher income you might have earned in the private sector by choosing to work for a government agency or nonprofit. You could run into the same issue with the Teacher Loan Forgiveness program if a school in a low-income area pays teachers less than other schools in the area. So in chasing after forgiveness, you could be leaving more money on the table in other ways.\nAlso, the PSLF program requires you to make 120 qualifying monthly payments, which means it'll take you at least 10 years to qualify. The income-driven repayment plans are even more demanding, requiring you to make payments for 20 or 25 years.\nFinally, if you pick an income-driven repayment plan, your forgiven balance will be taxable, which could cause problems with the IRS if you can't afford to pay the bill. END
 TITLE: What Is Student Loan Forgiveness and How Do I Qualify? CONTENT: Where to Find Student Loan Forgiveness Programs\n-----------------------------------------------\nAll three student loan forgiveness programs are available through the U.S. Department of Education. Depending on which program you're looking at, make sure to read more about Public Service Loan Forgiveness, income-driven repayment plans and Teacher Loan Forgiveness to find out if you qualify and whether it's worth it for you.\nAlso, each program has fine print that could cause you to lose eligibility if you're not careful. So read through the program's terms to make sure you don't get an unpleasant surprise when you're expecting the cancellation. END
 TITLE: What Is Student Loan Forgiveness and How Do I Qualify? CONTENT: How to Get Help With Your Student Loans\n---------------------------------------\nUnfortunately, student loan forgiveness programs aren't available for everyone, and even if they are, they aren't always the right fit. Fortunately, there are some other ways to get help with student loans if you're struggling:\n*   **Deferment and forbearance**: Both federal and private loans are eligible for deferment and forbearance, though terms can vary by lender for private loan borrowers. You typically need to show evidence of financial hardship to get approved, but if you do, your lender or servicer will pause your payments for a period as you get back on your feet.\n*   **Change your repayment plan**: Even if you never reach 20 or 25 years—your payments are recalculated based on income and other factors every year—an income-driven repayment plan can still make your payments more affordable when you need it right now. There are also other repayment plans for federal borrowers that can reduce your monthly payments, so consider all of your options.\n*   **Refinance your student loans**: Student loan refinancing is the process of replacing one or more existing student loans with a new one through a private lender. If your income and credit are in great shape, you may be able to get a lower interest rate than what you're paying now. You may also have the option to extend your repayment term. Both actions could help reduce your monthly payments.\n*   **Student loan repayment assistance programs**: Many states and federal agencies offer loan repayment assistance programs. These programs don't count as forgiveness because they're not coming from the Department of Education. But if you're a service member, teacher, health care professional or in the legal field, research your options. Also, some private employers also offer student loan repayment assistance as an employee benefit. Check with your employer to see if it's an option now or in the future. END
 TITLE: What Is Student Loan Forgiveness and How Do I Qualify? CONTENT: Maintain Good Credit as You Pay Down Student Loan Debt\n------------------------------------------------------\nPaying off student loans can take time, even if you're getting help. As you work on tackling your student debt, it's important to make building a positive credit history a priority.\nCheck your credit score regularly to make sure you're on the right track. If your score isn't where you want it to be, review your credit report and monitor your credit regularly to see if you can make any changes to your credit habits to improve your score. Also, make it a goal to make all your monthly debt payments on time, including your student loans.\nWhile your credit score may not impact your current student loans, it can give you more options with student loan refinancing. Also, it can help you obtain affordable financing when you try to apply for a credit card, buy a car or home or start a business. END
 TITLE: What Are the True Costs of Car Ownership? CONTENT: How to Calculate the Total Cost of Owning a Car\n-----------------------------------------------\nThe true cost of owning a car is much different than your monthly loan payment. To calculate a vehicle's real cost of ownership, consider the following expenses:\n*   **Financing costs**: The interest on your car loan can add significantly to the total cost of ownership. A longer loan term may lower your monthly payments, but you'll ultimately pay more in interest than you would with a shorter loan. According to Experian's State of the Auto Finance Market for the second quarter of 2020, the percentage of new car loan terms lasting 72 months—and even longer—has increased since the same quarter in 2019. Even with a lower interest rate on the loan, a lengthy term can drive up your interest costs significantly.\n*   **Car insurance**: States generally require drivers to buy a minimum level of car insurance; most drivers purchase more than that to protect themselves and their vehicles. If your car will be financed, your lender will almost certainly require you carry a level of coverage above what's legally needed. Before you buy a new car, visit car insurance websites to get an idea of how much the vehicle will cost to insure. If you have recent accidents or serious moving violations, your insurance premium could be very costly.\n*   **Maintenance and repairs**: Factory warranties on new cars cover repairs—typically for a certain number of years or miles driven, whichever comes first. Although some luxury cars' warranties include free scheduled maintenance such as oil changes, most car warranties do not, so you'll need to budget for recommended maintenance. Keep in mind that as your car gets older and the number of miles on it climbs, it's likely to need more maintenance and repairs. If you drive a lot, you'll need more frequent maintenance as well.\n*   **Fuel or electricity**: Whether your new car is gas-powered, electric-powered or a hybrid, you'll need to take fuel or electricity costs into consideration. You can estimate costs if you know how many miles you drive per year, the average cost of gas or electricity, and the car's efficiency.\n*   **License, registration fees and taxes**: Dealers generally roll these costs into your car loan when you buy the car. After that, you'll pay license and registration fees to the state each year; these gradually decline as your car depreciates in value. According to AAA, in 2019 licenses, registration and taxes cost an average of $753 annually.\n*   **Depreciation**: A new car typically loses a big chunk of its value in the first year and continues to depreciate by about 10% annually after that. Depreciation costs car owners an average of $3,334 a year, according to AAA. If you want more detailed estimates of a car's value, use a car valuation service such as Kelley Blue Book or Edmunds. END
 TITLE: What Are the True Costs of Car Ownership? CONTENT: How to Minimize the Costs of Owning a Car\n-----------------------------------------\nIf the thought of all these expenses has you rethinking car ownership, don't worry. There are plenty of steps you can take to help minimize your costs.\n*   **Pay attention to warranties.** After the manufacturer's \"bumper-to-bumper\" warranty expires, there may be an extended powertrain warranty that covers the car's major mechanical components. Using your warranty for covered repairs can save you money, but it's important to read the warranty carefully so you know what it includes, as well as any restrictions, exclusions or conditions. For example, you may need to have repairs done at a certain dealership or show proof that you performed all recommended maintenance.\n*   **Avoid long-term auto loans.** The interest on 72-, 84- or 96-month auto loans can really add up. If your budget can handle the higher monthly payments, a shorter loan term can save you thousands of dollars in interest over the life of the loan.\n*   **Lower your car insurance costs****.** Shop around to see which insurance company offers you the best rates on car insurance. Talk to your insurance agent to find additional ways you could save. Taking a defensive driving class, installing an app to monitor your driving habits, or increasing your deductible are just a few of the ways you might be able to lower your premiums.\n*   **Drive safely.** Steer clear of risky driving habits such as speeding or slamming on your brakes. They'll put you at greater risk of getting a ticket or having an accident, both of which could mean higher insurance premiums. Aggressive driving can also be hard on your car, costing you more in maintenance.\n*   **Look for ways to pay less at the pump.** Use an app like GasBuddy, GasGuru or Waze to find the cheapest fuel in your area. Check your owner's manual; if the car doesn't require premium gas, you can save by purchasing lower-grade fuel. Joining a warehouse club such as Costco that sells gas or using a supermarket gas rewards program can also cut your gas costs. If you really want to save at the pump, consider buying an alternative-fuel vehicle. AAA reports that the power costs associated with a compact electric car are $596 a year on average, compared with $1,255 you'd spend on gas for a similarly sized gas-powered car.\n*   **Take good care of your car.** Avoid costly repairs by getting your car maintained regularly. Check the owner's manual for recommended servicing intervals. You can save money by learning how to handle simple maintenance tasks such as changing bulbs, wiper blades and air filters. If you're more ambitious, learn how to change the oil or rotate the tires yourself.\n*   **Drive less.** You'll save on fuel and reduce wear and tear on your car by walking, biking or carpooling whenever you can. If you drive less, you may also qualify for low-mileage car insurance discounts. END
 TITLE: What Are the True Costs of Car Ownership? CONTENT: Tips for Purchasing a Car\n-------------------------\nWhether you plan to buy a new car or are considering a used car, taking the same general approach to car buying will help you get the most for your money.\nStart by reviewing your income and expenses. Taking into account all the costs of car ownership, how much can you afford to spend on a car each month? If you don't have money for a down payment yet, how quickly can you save it up?\nAfter you have an idea of your budget, start researching and pricing cars online. If you're going to buy a used car, check local auto dealers' stock and look at Kelley Blue Book car values to get a price range for the car you want.\nOnce you have a price in mind, use an online auto loan calculator to assess how different loan terms and down payment amounts will affect both your monthly payments and the total amount of interest you'll pay for financing the car.\nYou'll have more negotiating power at the auto dealership if you've been preapproved for a loan before you visit. To find the best loan terms, apply for several different auto loans online. Just be sure to do it within a 14-day period. If all your applications are within that time frame, lenders' inquiries into your credit generally count as one inquiry when reported to credit bureaus, minimizing any negative effects on your credit score.\nAre you hoping to qualify for those 0% APR offers that auto dealers promote? Having good credit boosts your odds of qualifying for the best loan terms. Before you apply for any car loans, check your credit score and review your credit report for factors that might be dragging it down.\nIf you don't have good credit, delaying your car purchase until your scores improve could help you get more favorable loan terms and save you thousands of dollars in interest. Paying your bills on time, paying down your debt and using less of your available credit can all help improve your credit score. You can also give your credit score a nudge by using Experian Boost™† . This free service reports your utility, cellphone and streaming service bill payments to credit bureaus, which can improve your credit score instantly. END
 TITLE: What Are the True Costs of Car Ownership? CONTENT: Is the Car Worth the Cost?\n--------------------------\nCalculating the true cost of car ownership can help make sure you buy the right car for you. Should you opt for a cheaper vehicle that leaves more money in your bank account, or stretch your budget to afford a more expensive car? When you know how much you'll spend to keep that dream car gassed up, insured and running smoothly, you'll be better poised to make a smart choice. END
 TITLE: How to Get a Student Loan to Help Pay for College CONTENT: Federal student loans are offered as financial aid through your school. Because they are funded by the U.S. Department of Education, federal loans come with certain benefits you won't get with private student loans.\nThat includes access to student loan forgiveness programs and income-driven repayment plans, as well as generous deferment and forbearance options.\nThe process of getting a federal student loan is relatively simple. You'll start by filling out the Free Application for Federal Student Aid (FAFSA). With this, you'll share financial information about yourself and your family to help your school's financial aid office determine how much aid you qualify for in the form of student loans, scholarships, grants and work-study programs.\nMost federal student loans don't require a credit check, so you can even fill out the FAFSA with bad credit or no credit history. Only Direct PLUS Loans, which are available to graduate and professional students and parents, require a credit check. Even then, the government will only look for very specific negative items.\nUndergraduate students with financial need may qualify for subsidized student loans, which means the federal government pays the accruing interest while you're in school, during the six-month grace period after you leave school and during deferment periods.\nAll other borrowers will get access to unsubsidized loans, where you're responsible for all the interest that accrues on the account. Undergraduate students might also get unsubsidized loans if they don't meet requirements for subsidized loans or have maxed out the amount they can borrow.\nIf you qualify for federal student loans, the terms—including the interest rate, loan fee and repayment period—are standardized, which means everyone who qualifies for a specific type of federal loan gets the same terms. For example, subsidized and unsubsidized federal loans issued to undergraduates from July 1, 2020, to June 30, 2021, have a fixed interest rate of 2.75%. END
 TITLE: How to Get a Student Loan to Help Pay for College CONTENT: How to Get a Private Student Loan\n---------------------------------\nPrivate student loans are generally less appealing than federal loans because they don't come with loan forgiveness programs, typically carry higher interest rates and rarely have the benefit of income-driven repayment plans.\nBut if you've maxed out your federal loan limits—there are annual and aggregate caps—or you're a graduate student or parent, they may be worth considering (especially if you have great credit).\nFinding a private student loan involves applying with individual private lenders. Each one has its own criteria for determining eligibility and also its own set of interest rates, repayment terms and other features.\nOne of the drawbacks of private student loans versus federal loans is that private loans typically require a credit check. If you have excellent credit and a relatively high income (or a cosigner with both), it likely won't be a problem, and you may even be able to qualify for a lower interest rate than what the federal government offers on graduate and parent loans.\nBut if your credit history is limited or has some negative marks and you don't have a creditworthy cosigner, you may have difficulty getting approved.\nThe good news is that private student loan companies typically allow you to get preapproved before you submit an official application. This process requires just a soft credit check, which won't impact your credit score, and it allows you to see if you qualify and compare rate offers to ensure you get the best deal.\nIf you are eligible, the terms of your loan will vary based on your credit history, income and other factors. END
 TITLE: How to Get a Student Loan to Help Pay for College CONTENT: Other Ways to Pay for College\n-----------------------------\nWhile student loans can be a convenient way to help you get through school, reducing how much you borrow can make a huge difference for your financial security down the road. Here are some other ways you can pay for college that don't require you to pay the money back at a later date.\n*   **Scholarships**: Check your school's website to see whether it offers scholarships for academic, athletic or other reasons, and if you're eligible. Also, search for scholarships on websites like Scholarships.com and Fastweb. You'll be able to filter millions of opportunities to find ones designed for you.\n*   **Grants**: Part of the financial aid process includes grants for students who have the financial need, so filling out your FAFSA is always a good idea, even if you don't plan to borrow money. Also, check with your school and explore private scholarship websites to research other grants. Some grants may only be available to students involved with certain college programs, or in specific fields of study, so it might be helpful to ask a professor or academic advisor you think would be knowledgeable.\n*   **Part-time work**: If your class schedule allows it, search for on-campus or off-campus jobs to help you pay for tuition, fees or other educational and living expenses. Even if you only work a handful of hours a week, your income can add up over time and help you avoid thousands of dollars in debt over the course of your college career. Your financial aid package may include work-study programs for your college, which can make the process of finding a job easier.\nIt's also important to keep in mind that picking a less expensive school and looking for other ways to keep your costs down while you're in college can go a long way in helping you reduce your reliance on student loans. END
 TITLE: How to Get a Student Loan to Help Pay for College CONTENT: Build Credit for Future Borrowing Needs\n---------------------------------------\nIf you think you'll need to use private student loans at any point in the future, or you simply want to establish a credit history for when you need it after graduation, the sooner you start, the better.\nWhile student loans can help with that, they won't do much until you start making payments, which won't happen for most until after graduation. Student credit cards can be a great way to build credit because as long as you keep your balance low and pay your bill on time and in full every month, you can avoid interest charges.\nWhile you work to build credit, monitor your credit score regularly to keep track of your progress, and address any potential issues as they arise. END
 TITLE: How to Get Out of a Car Loan You Can’t Afford CONTENT: How Do Car Loans Work?\n----------------------\nA car loan is a secured installment loan you can use to purchase a vehicle. The car itself is used as collateral to secure the loan, which means the lender can repossess the vehicle to recoup the loan amount if you stop making your payments.\nBecause car loans are installment loans, the borrower makes equal monthly installment payments until the loan is paid in full. Car loan repayment terms can range anywhere from 12 to 84 months, though the average length is roughly 72 months for new cars and 65 months for used ones.\nA car loan's interest rate, which is based on your credit score, income and other factors, applies for the entire life of the loan. When you borrow to buy a car, the lender calculates how much you have to pay in principal and interest each month to reach a zero balance at the end of your repayment schedule. A lower interest rate can help reduce how much you'll have to pay.\nYou can get a car loan from a number of places. Banks, credit unions and vehicle manufacturers are the most common sources of car loans. You may even be able to secure financing directly from the dealership (\"buy here, pay here\"), but that's not usually a great option. In some cases, you can apply for a loan directly from a lender, and in others, your lender may arrange financing on your behalf. END
 TITLE: How to Get Out of a Car Loan You Can’t Afford CONTENT: What to Do if You Can't Afford Your Car Loan Payments\n-----------------------------------------------------\nDuring the financing process, it's important to consider your budget to make sure you can afford the vehicle you're buying. But financial situations can change and you may now be finding it difficult to stay on track.\nIf you're having a hard time making your monthly payments, here are some potential ways out. END
 TITLE: How to Get Out of a Car Loan You Can’t Afford CONTENT: How Will Getting Out of a Car Loan Affect My Credit?\n----------------------------------------------------\nThe ways getting out of a car loan can affect your credit depend largely on which path you choose:\n*   **Selling the car**: If you sell your car and pay off the loan in full, it won't have much of an impact on your credit score at all. That said, if you replace your loan with a new one on a cheaper car, the hard credit inquiry may temporarily lower your credit score a little.\n*   **Negotiating with your lender**: Depending on what you and the lender end up deciding, it may or may not impact your credit score. If you get on a longer-term modified repayment plan, it may report that you're no longer making payments as originally agreed, which could impact your score and how future lenders view you.\n*   **Refinancing your auto loan**: As with replacing your current car with a new one, refinancing your car loan will impact your credit when you apply for the loan. That said, in most cases, one new hard inquiry won't take more than five points off your credit score, if it affects your score at all.\n*   **Voluntarily surrendering the vehicle**: If you have no other options but to give up your car, you won't be able to avoid damage to your credit score by voluntarily surrendering the vehicle. By the time it occurs, you've likely already missed some payments, which can wreak havoc on your credit history, and have been threatened with repossession. However, giving up the car instead of waiting for the lender to seize it may look better to lenders reviewing your credit report in the future. END
 TITLE: How to Get Out of a Car Loan You Can’t Afford CONTENT: How to Avoid Going Upside Down on a Car Loan\n--------------------------------------------\nBeing upside down on a car loan occurs when you owe more than the car is worth. It's also called being underwater or having negative equity.\nIf you're upside down on your car loan and sell it, refinance it or voluntarily surrender it, you may need to pay the lender to make up the difference between the car's value and the outstanding loan amount. If you're already struggling with your payments, this payment can make your situation much worse.\nThere may not be much you can do about being underwater on a car loan if you're already there. But here are a few ways you can avoid it:\n*   **Make a large down payment.** Most cars depreciate over time—new cars tend to depreciate rapidly during the first year. If you don't make a down payment or put down just a little, your vehicle could depreciate faster than you're able to pay down the loan. Making a larger down payment can help prevent negative equity.\n*   **Opt for a shorter repayment term.** A longer auto loan term can make monthly payments more affordable, but it can have an unintended consequence if you're not careful. Even if you put money down on your loan, a longer repayment term means you're paying down the loan more slowly, which could make it easier for depreciation to outpace your repayment. END
 TITLE: How to Get Out of a Car Loan You Can’t Afford CONTENT: Don't Forget About Your Credit Score\n------------------------------------\nIf your budget is tight and you can't afford your car payments, your primary concern may understandably be about your current situation and needs. But it's also important to think about the potential long-term ramifications of surrendering the car or having it repossessed.\nAs you consider your options for getting relief from your auto loan, make sure you understand how they can affect your credit and how you can minimize that impact. You can get a free copy of your credit report from all three major credit bureaus through AnnualCreditReport.com. You can also get your free credit report and score directly from Experian. Or consider using your Experian account to monitor your credit score, so you always know where you stand, and keep track of fluctuations, so you can address potential issues as they arise. END
 TITLE: When Is the Right Time to Trade in a Car? CONTENT: How to Know When It's Time to Trade in Your Car\n-----------------------------------------------\nIf you need a new vehicle right now, you may not have the luxury of timing your trade-in. But if you have some flexibility, there are some factors to think about. Consider the following: END
 TITLE: When Is the Right Time to Trade in a Car? CONTENT: When Should You Wait to Trade In Your Car?\n------------------------------------------\nTrading in a vehicle can be key to helping you afford your next car. But in some cases, it may not be worth it. END
 TITLE: When Is the Right Time to Trade in a Car? CONTENT: Should I Sell or Trade In My Car?\n---------------------------------\nThe alternative to trading in your vehicle to a dealer is to sell it to a private party. Neither is inherently a better option for everyone, though, so it's important to understand both the pros and cons of each approach. END
 TITLE: When Is the Right Time to Trade in a Car? CONTENT: Trading In Your Car and Down Payments\n-------------------------------------\nA vehicle trade-in may be all or some of the down payment you make on your vehicle purchase. Like a cash down payment, a trade-in can reduce the cost of your new car, which cuts down how much you need to borrow and your monthly payment.\nIf you want, you can provide a mix of trade-in value and cash as your down payment. How much cash you add will depend on how much you have on hand, but the more money you put down, the easier your new loan will be on your budget. Just be careful when tapping savings, and make certain you're not wiping out your emergency fund.\nA higher down payment can also reduce your interest rate, saving you even more money. Just keep in mind that if you qualify for a very low interest rate, it may be better to use that money to invest for your future and get a better return. END
 TITLE: When Is the Right Time to Trade in a Car? CONTENT: What Types of Vehicles Hold Their Value the Best Upon Trade-In?\n---------------------------------------------------------------\nAccording to Kelley Blue Book, Subaru and Porsche cars have the best resale value in 2020. Here are some of the top options for different categories:\n*   **Best subcompact SUV**: Subaru Crosstrek\n*   **Best compact SUV**: Subaru Forester\n*   **Best two-row midsize SUV**: Subaru Outback\n*   **Best full-size SUV**: GMC Yukon\n*   **Best compact luxury SUV**: Porsche Macan\n*   **Best compact car**: Subaru Impreza\n*   **Best midsize car**: Subaru Legacy\n*   **Best full-size car**: Toyota Avalon\n*   **Best luxury car**: Lexus GS\n*   **Best hybrid car**: Toyota Prius Prime\n*   **Best electric vehicle**: Tesla Model X\n*   **Best minivan**: Honda Odyssey\n*   **Best midsize pickup truck**: Toyota Tacoma\n*   **Best full-size pickup truck**: Toyota Tundra END
 TITLE: When Is the Right Time to Trade in a Car? CONTENT: Make Sure Your Credit Is Ready for a Car Purchase\n-------------------------------------------------\nTrading in a vehicle or selling it to a private party can give you some cash to reduce how much you borrow on your new car. But it's still important to take steps to ensure that you qualify for a low interest rate on your loan.\nTo do this, check your credit to get an idea of where you stand. If you need to make some adjustments or improvements, you can find the information you need in your credit report. You can get a free copy of your credit report from all three credit bureaus by visiting AnnualCreditReport.com. You can also get your credit reports and score for free from Experian. Improving your creditworthiness may mean getting caught up on past-due payments, paying down credit card balances, disputing inaccurate information and more.\nImproving your credit can take time, but it can also help save you hundreds or even thousands of dollars in interest on an auto loan. END
 TITLE: What Are Penny Stocks and Are They Safe? CONTENT: Is It a Good Idea to Invest in Penny Stocks?\n--------------------------------------------\nPenny stocks are tempting because they're cheaper per share than popular stocks that trade on major exchanges. Because they have much lower prices, the potential upside can also be greater.\nBut investing in OTC stocks can be incredibly risky, and they aren't considered a good investment for most investors. Here's why. END
 TITLE: What Are Penny Stocks and Are They Safe? CONTENT: Penny Stocks Are No Longer Necessary for Small-Time Investors\n-------------------------------------------------------------\nBecause of their low prices, penny stocks attract inexperienced traders who don't have a lot to invest. But with the advent of fractional shares, it's no longer necessary to take on the additional risk that penny stocks pose.\nFractional shares allow you to purchase a portion of a share in a company based on how much you want to invest. With Amazon, for instance, you don't have to have the roughly $3,100 it would take to buy a share in the company (as of January 2021). Instead, you can purchase a fractional share based on your ability to invest. With some brokerages, that figure can be as low as $1.\nWhile you won't own a whole share, you'll still be able to participate in the stock's ups and downs. Your share in gains and losses remains the same in terms of percentages but different in actual dollars.\nFor example, if you buy one share of Apple stock at $130 and the share price increases by 10%, your gain is $13. In contrast, if you own $5 worth of Apple stock via fractional shares, your gain will be $0.50.\nMany brokerages offer fractional shares, including Charles Schwab, Fidelity, Robinhood and more. END
 TITLE: What Are Penny Stocks and Are They Safe? CONTENT: Additional Places to Invest Your Money\n--------------------------------------\nIn addition to fractional shares in individual stocks, you've got plenty of other options that may be safer, and even more lucrative, than penny stocks. Depending on how much you have to trade, you may also have other options, including:\n*   Bonds\n*   Mutual funds\n*   ETFs\n*   Certificates of deposit\n*   Real estate\n*   Precious metals\n*   Cryptocurrency\nOf course, it's a good idea to do your research on investment opportunities before you pull the trigger. With individual stocks, for instance, there are different categories, such as large cap, small cap, growth and value. Each of these categories has its benefits and drawbacks, and it's important to understand them to ensure you make the right decision, especially when you're just starting out with investing.\nAdditionally, it's a good idea to make sure your finances are in enough order that it makes sense to begin investing. For example, you'll want to make sure you have a robust enough emergency fund that you can weather rainy days. It's also generally a good idea to pay down high-interest debt because the interest rates are often higher than the expected return of the stock market.\nAs you invest, keep your long-term financial goals in mind. It's a good idea to maintain a retirement account separate from the investment accounts you manage, so you don't put all your eggs in one basket. Managing your own investments can be worthwhile, but it can also be riskier than a professionally managed 401(k) or IRA account. END
 TITLE: What Are Penny Stocks and Are They Safe? CONTENT: Consider Financial Planning Help\n--------------------------------\nInvesting in stocks and other securities can be an exciting prospect, but doing the research and developing the right strategy can take months or even years. What's more, it can be time-consuming to manage those accounts, whether that means timing your purchases or knowing when to sell.\nThe best way for you to invest can depend on many factors, including your age, income, investment knowledge, capacity to invest, risk tolerance and more. If you need help, consider working with a financial advisor. An advisor can help you by learning about your situation and goals and providing advice on how to achieve them. The financial planning process is often comprehensive, including your entire financial plan, not just the investment portion.\nMany financial advisors can also do some or all of the work of investing your money on your behalf. That said, these advisors can be expensive.\nAnother option is to consider opening an account with a robo-advisor. Robo-advisors are investment management companies that use algorithms to create and manage your portfolio. There's very little human interaction involved, though some robo-advisors have a team of advisors you can speak with.\nRobo-advisors are typically much cheaper than hiring a financial advisor. But if you prefer a more personalized service based on your overall financial plan, you likely won't get what you need from one. They also give you little control over what's in your portfolio, which can be challenging for some. END
 TITLE: What Are Penny Stocks and Are They Safe? CONTENT: Do Your Homework to Find the Right Investment Strategy for You\n--------------------------------------------------------------\nThere's no one-size-fits-all approach to investing. While penny stocks do get attention from traders, they're generally not the best way to go for inexperienced investors. Instead, look for other opportunities to invest your money based on how much you have to invest and your short-, mid- and long-term goals.\nAlso, consider enlisting the help of a robo-advisor or human advisor, who can do much of the legwork for you.\nFinally, try to avoid prioritizing investing over fundamental financial planning and long-term financial goals, which can include keeping a budget, building an emergency fund, paying off debt, saving for retirement, maintaining enough insurance coverage, monitoring your credit and more. The best financial approach is often a comprehensive one. END
 TITLE: Step-by-Step Checklist to Opening an IRA CONTENT: Before You Invest\n-----------------\nDeciding to invest in an IRA will depend on your other retirement options, your employment situation and whether you are investing for yourself or yourself and your spouse. Find your situation below and go from there.\n*   **Your employer doesn't offer a retirement plan.** In this case, an IRA is one of your best options for building retirement savings.\n*   **Your employer offers a retirement plan such as a 401(k).** Even if you contribute to your company's 401(k) plan, you can also invest in an IRA. An IRA can help you diversify investments or save more than your 401(k) allows. Things to keep in mind:\n    *   If you or your spouse contribute to an employer-sponsored 401(k), you may not be able to deduct all your contributions to a traditional IRA from your taxes.\n    *   If the employer matches a percentage of 401(k) contributions, fund the 401(k) up to the employer match amount before opening an IRA.\n*   **You recently left a job that had an employer-sponsored 401(k) or are planning to.** In this situation, consider a rollover IRA.\n    *   A rollover IRA allows you to transfer the savings in your employer-sponsored 401(k) plan when you leave or change jobs.\n    *   Some employers let you keep funds in their 401(k) after you leave, but a rollover IRA can reduce fees and give you more control over your investments.\n*   **Your spouse doesn't work.** You can fund a spousal IRA for your non-working spouse with your income. This increases the total amount you can save.\n*   **You own your own business.** Consider a SEP-IRA or SIMPLE IRA. Both plans are available whether you are a one-person business or have employees, and both allow you to save more than the annual limit for traditional and Roth IRAs. Your accountant or financial advisor can help you determine whether an SEP-IRA or SIMPLE IRA is best for your situation.\n    *   SEP-IRA (Simplified Employee Pension): Employers may contribute for eligible employees (including themselves). Employees manage their plans but cannot contribute.\n    *   SIMPLE IRA (Savings Incentive Match Plan for Employees): Employees manage their plans and can contribute. Employers must contribute for eligible employees (including themselves). END
 TITLE: Step-by-Step Checklist to Opening an IRA CONTENT: Decide Between a Roth IRA and a Traditional IRA\n-----------------------------------------------\nIf an IRA looks like a good option for you, you'll need to choose between a traditional IRA and a Roth.\n*   **Traditional IRA**: Contributions are made pretax and are tax-deductible depending on your income and whether you have an employer-sponsored retirement plan.\n    *   Because you don't pay tax on contributions until you begin taking withdrawals after age 59½, traditional IRAs are especially good for high earners looking to reduce their current taxable income.\n    *   You must start taking distributions from the IRA by April 1 of the year after the calendar year you turn 70½ (or 72 if your 70th birthday was July 1, 2019, or later).\n*   **Roth IRA**: Contributions are made with post-tax dollars and are not tax-deductible.\n    *   Because you contribute to Roth IRAs with after-tax dollars, you pay no tax on withdrawals made after age 59½. For that reason, Roth IRAs can be a good option for people just starting their careers who have a lower income tax bracket than they may later.\n    *   You are never required to take distributions; you can even leave the IRA to a beneficiary.\nThe following table compares the differences between Roth and traditional IRAs. END
 TITLE: Step-by-Step Checklist to Opening an IRA CONTENT: Determine How Much You Can Contribute Each Month\n------------------------------------------------\nTo calculate your monthly contribution to your IRA, answer these questions:\n*   **How much do I need to save for retirement?**\n    *   Experts recommend putting at least 15% of your gross income into retirement savings, but you may need to save more depending on your desired retirement age and lifestyle.\n    *   Investment firms including Charles Schwab, Fidelity, T. Rowe Price and Vanguard have online calculators you can use to estimate retirement needs.\n*   **How much can I afford to contribute?**\n    *   Create a budget that allows for a monthly IRA contribution.\n    *   Fund an IRA as early as you can. Starting your IRA just a few years earlier can make a big difference at retirement. If you put the maximum amount ($6,000 annually for 2020) into a traditional IRA starting at age 25, at 65 you would have $1,308,545. If you waited until age 35 to start contributing the maximum, at age 65 you'd have $633,326.\n    *   Use the AARP IRA Calculator to project your potential IRA returns.\n*   **What is the plan's annual contribution limit?**\n    *   Aim to make the maximum allowable annual contribution to your IRA.\n    *   You can contribute to an IRA up to April 15 for the previous tax year. END
 TITLE: Step-by-Step Checklist to Opening an IRA CONTENT: Choose an IRA Provider\n----------------------\nYou can open an IRA with many types of financial institutions, including banks, credit unions, investment brokerages and mutual fund providers. Providers generally offer three options:\n*   **Self-managed**: You select and manage your own investments. These funds are best for sophisticated investors and typically charge lower fees.\n*   **Automated \"robo-advisor\"**: You choose from a menu of portfolios (or answer a questionnaire) tailored for different risk tolerances, life stages and goals, and the robo-advisor uses that information to create and manage your investments. The automated digital platform is based on complex algorithms and requires little, if any, human interaction. These funds typically charge lower fees and are a good choice if you don't want to manage your own IRA but also don't want to pay for professional management.\n*   **Professionally managed**: A dedicated portfolio manager selects and manages investments for you based on your risk tolerance, age and goals. These funds charge higher fees and are good for high-net-worth investors, investors with complex financial holdings or those seeking personalized advice.\n### Questions to Ask IRA Providers\n*   **What are the fees?**\n    *   Fees to open and manage the account\n    *   Per-transaction or per-trade fees\n    *   Fees for customer service calls\n*   **Is there a minimum initial investment?**\n*   **Are you required to maintain a certain minimum balance?**\n*   **How is customer service provided (phone, chat, email)?**\n    *   What hours is customer service offered and how quickly can you expect a response?\n    *   Will your questions be answered by a dedicated advisor or by various customer service agents?\n*   **What are the firm's credentials and qualifications?** Visit the Securities and Exchange Commission for guidance on investigating a firm or advisor. END
 TITLE: Step-by-Step Checklist to Opening an IRA CONTENT: Open an IRA\n-----------\n*   **Complete documents required by the provider.** You can usually do this online.\n*   **If required, make an initial deposit to open the IRA.** Some IRAs can be opened with a zero balance.\n*   **Set up ongoing deposits.** These will come directly from your paycheck or bank account.\n*   **Select investments.** You do this yourself or with help from the provider depending on which account management option you choose. Select investments based on your age, retirement goals and risk tolerance.\nManaging Your IRA\n-----------------\n*   **Commit to contributing to your IRA every month.** If possible, try to fund your IRA up to the maximum allowable contribution.\n*   **Monitor your investments and update your portfolio as needed.** Depending on your IRA, your advisor may do this for you, your investments may update automatically, or you may do it yourself. END
 TITLE: What Happens to Interest Rates During a Recession? CONTENT: When a recession occurs, there's often a widespread and lengthy decline in the economy. However, the exact measure and definition of a recession can vary.\nOne popular definition of a recession is when there are two consecutive quarters of negative gross domestic product (GDP) growth. But the nonprofit National Bureau of Economic Research (NBER), which determines the start and stop dates of recessions in the U.S., takes a more nuanced approach. In addition to looking at GDP data, the NBER considers other factors, such as income and unemployment rates.\nIn June, the NBER confirmed that the current U.S. recession began in February 2020. Once a low point is reached, the economy shifts from recession to expansion. END
 TITLE: What Happens to Interest Rates During a Recession? CONTENT: How Do Recessions Affect Interest Rates?\n----------------------------------------\nInterest rates tend to go down during a recession as governments take action to mitigate the decline in the economy and stimulate growth.\nIt can take several months to get all the data needed to determine when a recession starts, but the U.S. Federal Reserve cut its target interest rate in mid-March 2020 in response to the coronavirus outbreak's economic impact.\nLow interest rates can stimulate growth by making it cheaper to borrow money, and less advantageous to save it. As a result, companies may borrow to invest in their business and individuals may look for ways to take advantage of low rates. For example, more people may be tempted to buy a new car with a low-rate auto loan, and the increased demand supports the activity that goes into manufacturing and selling the car.\nHowever, you may find it's difficult to get approved for a loan during a recession, as creditors also become cautious about lending money. They may increase minimum credit score requirements, require higher down payments or even stop offering certain types of loans altogether. END
 TITLE: What Happens to Interest Rates During a Recession? CONTENT: Should I Refinance During a Recession?\n--------------------------------------\nIf you can qualify for a new loan, refinancing your debts while interest rates are low could decrease your monthly payments and save you money. While there are pros and cons to each option, refinancing your mortgage, auto loan or student loans might be the smart move.\n*   **Refinancing mortgages:** Due to the amount of money involved, refinancing a mortgage could lead to significant savings. However, you may need to pay closing costs on your new loan and prepayment penalties to your current lender. As a result, it could take several years to break even and benefit. Consider the cost and savings, and whether you're likely to stay in the home for long enough to make refinancing worth it.\n*   **Refinancing auto loans:** Auto loan refinancing generally doesn't require closing costs, which can make it easier to determine if refinancing is a good idea. But still look out for prepayment penalties on your current auto loan or other fees that could eat into your potential savings.\n*   **Refinancing student loans:** Student loans don't have prepayment penalties, and many private lenders don't charge origination fees. If you currently have private student loans and can refinance into a lower-rate loan, it may be a good idea. But refinancing federal student loans isn't as straightforward. You'll need to refinance with a private loan and will lose federal benefits, such as access to hardship options and forgiveness programs.\nThere are also some factors that apply to every type of debt. For instance, even if you get a lower interest rate and decrease your monthly payment, if you increase your repayment term, you may wind up paying more interest overall.\nWhile refinancing is generally described as replacing a current loan with a new loan of the same type, you could also look into consolidating credit card debt with a personal loan while interest rates are low. Some personal loans have origination fees, but the loans may have much lower rates than credit cards and the fixed monthly payment can make it easier to stay on track and pay off the debt. END
 TITLE: What Happens to Interest Rates During a Recession? CONTENT: Check Your Credit Before Refinancing\n------------------------------------\nIf you're considering refinancing, or taking out a new loan, your credit can have a direct impact on your ability to qualify and the interest rate you'll receive. You can check your credit score for free with Experian, see which factors are impacting your score and learn how you may be able to increase it. Then, start shopping for a new loan to see which lender will offer you the best rate. END
 TITLE: What Is the Difference Between a Recession and a Depression? CONTENT: Financial markets and the overall economy go through periods of ups and downs. But that doesn't mean a down week in the stock market qualifies as a recession—economic analysts focus on business cycles on the scale of months to years. When it comes to determining when the U.S. has entered or emerged from a recession, the National Bureau of Economic Research (NBER) is considered the official arbiter.\nRecessions are widespread and typically impact almost every sector of the economy. When deciding whether the economy has entered a recession, the NBER considers several indicators of economic activity, including industrial production, the employment rate, gross domestic product (GDP) growth and personal income. A recession begins when these indicators start a long, steady decline and ends when they finally rise again. This period of decline can last from months to years.\nA drop in employment, due to layoffs or reduced work hours, typically results in decreased household income and thus spending, which can further hurt the economy. This might cause companies that are losing business to start cutting back costs and laying off workers. Additionally, the government might make interventions such as going further into debt to attempt to stabilize the economy, and the Federal Reserve might cut interest rates to make borrowing cheaper.\nThe NBER recently declared that the U.S. entered an economic recession in February 2020, ending 11 years of economic expansion. They noted, however, that the current recession is due to the sudden public health crisis—not the typical financial factors that commonly lead to recessions. END
 TITLE: What Is the Difference Between a Recession and a Depression? CONTENT: What Causes a Recession?\n------------------------\nEvery recession is unique, and can be brought on by various economic events. In the past, factors such as oil prices, inflation, monetary policy, market crashes or issues specific to a certain industry have led to recession.\nIt can also be due to the collapse of an asset bubble; this was a major factor in kicking off the Great Recession of the late 2000s. Lax lending standards led to a wave of mortgage default and foreclosure, which caused the housing sector to collapse and pull the American economy into a full-on recession.\nUnexpected events, too, can lead to recession like we're seeing with the coronavirus outbreak and ensuing shutdown of businesses. The International Monetary Fund predicts the \"Great Lockdown\" is creating the worst economic recession the world has seen since the Great Depression. Does that mean the U.S. is headed for a depression? Not necessarily. Read on. END
 TITLE: What Is the Difference Between a Recession and a Depression? CONTENT: What Is a Depression?\n---------------------\nAn economic depression is similar to a recession, but much more severe and longer lasting. Not only does a depression last longer, but its effects can be far-reaching and linger long after the economy begins to recover.\nThe NBER has no formal definition of a depression, but points out the last event widely regarded as a depression was the Great Depression of the 1920s and '30s. During this depression, the national unemployment rate climbed to nearly 25%, with the GDP declining 27%. A depression can also greatly reduce international trade and wreak havoc globally.\nThe Great Depression was the longest and most severe financial crisis of its kind in the U.S. It started with a recession where the country saw spending decline and subsequent manufacturing decline, but before long had evolved into a depression that rippled out across the world. Even people who kept their jobs saw incomes go down by as much as a third. END
 TITLE: What Is the Difference Between a Recession and a Depression? CONTENT: What Can Cause a Depression?\n----------------------------\nThe Great Depression is the only modern example of a depression, so it's hard to say generally what could lead to one in modern times. But looking back at this period can be informative.\nThe Great Depression didn't happen overnight: Several factors came together to create a perfect storm that devastated the economy. Like other recessions, it began with a decline in spending, manufacturing and construction, but experts believe a glut in housing inventory, higher federal interest rates, problems with the gold standard, and overpriced stocks pushed it into something deeper.\nThe official start of the Great Depression is typically considered to be the massive stock market crash of 1929. As panicked consumers and businesses rushed to get their money out of banks, many banks ran out of money. Nearly half of U.S banks had failed by 1933 as a result, leaving a vast number of Americans without the money they thought was safely stashed away for the future.\nTo help Americans recover and hopefully prevent the next depression, big changes were made. The Federal Deposit Insurance Corporation was created to protect deposit accounts and the Securities and Exchange Commission was set up to regulate the stock market. Some experts credit the increased industrial production required for World War II as a major factor in ending the Great Depression. END
 TITLE: What Is the Difference Between a Recession and a Depression? CONTENT: Can Credit Be Affected During a Recession or Depression?\n--------------------------------------------------------\nA recession or depression itself won't hurt your credit, but its indirect effects on your personal finances can. For example, if you get laid off, you might make a late car payment or miss a credit card payment. You may fall behind on utility bills that go into collections. These events can damage your credit. Additionally, if you're struggling to make ends meet and put more purchases on credit cards than usual, you could harm your credit if your credit utilization ratio gets too high.\nHowever, during economic turndowns, lenders may be more flexible and willing to work with borrowers who are struggling to make payments. Some may automatically offer more leniency, while others might require you to contact them if you need assistance or provide proof of a hardship. If the lender is willing to assist, you might be approved for payment deferment or reduced payments on a temporary basis. On the flip side, some lenders may tighten criteria for new borrowers applying for credit during hard times in order to mitigate their risk.\nDuring an economic turndown, even if you're struggling financially, it's important to try to protect your credit so you're in good shape when things begin to normalize. To do this, make sure you're continuing to make your payments on time, and reach out to your lenders and utility companies as soon as possible if you know you won't be able to pay on time. You may need to also cut expenses and stick to a tight budget during this time. END
 TITLE: What Is the Difference Between a Recession and a Depression? CONTENT: How Can I Prepare My Finances?\n------------------------------\nAs the pandemic showed us, it can be hard to predict when an economic downturn will hit, and it can happen quickly. To protect yourself during tough times, it's wise to prepare your finances before a recession or depression hits. Here are some ways to plan ahead:\n*   **Create a budget**. This will help you stay aware of the minimum amount you need each month for necessary expenses. You may also want to note disposable income spending so if things get tough, you'll immediately know some places you can cut (things like streaming subscriptions, gym memberships and the like).\n*   **Start building an emergency fund.** It's ideal to have three to six months' worth of living expenses saved so if you lose your job, you can get by for a while without going into debt. It can also help you avoid taking on debt if you encounter an unexpected bill, such as a car repair.\n*   **Catch up on past payments.** Overdue payments can cost you in late fees and in other ways, as well as potentially harming your credit scores.\nKnow Your Credit\n----------------\nIt's wise to keep an eye on your credit score so you know where you stand before a recession, and so you can help make sure it doesn't get damaged during one. Sign up to check your credit report and score for free with Experian, and check in on it periodically so you can course-correct as needed. END
 TITLE: What Is the Difference Between a Recession and a Depression? CONTENT: Know Your Credit\n----------------\nIt's wise to keep an eye on your credit score so you know where you stand before a recession, and so you can help make sure it doesn't get damaged during one. Sign up to check your credit report and score for free with Experian, and check in on it periodically so you can course-correct as needed. END
 TITLE: Should I Pay Off Debt Before I Invest? CONTENT: Assess Your Financial Baseline\n------------------------------\nBefore you start putting your money toward either option, it's essential to make sure you have your financial basics covered. The best way to do that is to create a budget if you don't already have one so you can see how your monthly income is used.\nSome experts recommend using a 50\/30\/20 approach to your budget: 50% of your income goes toward necessities (food, shelter, utilities and so on), 30% toward discretionary spending (optional expenses) and 20% toward savings and debt payments.\nThat's just a starting point, however: Depending on your situation, you may need to reduce your discretionary spending to focus on eliminating debt or saving for the future. It's important to consider your situation and goals to find the right balance.\nOnce you determine the amount you're able to set aside for paying off debt or investing, you need to prioritize your options. As you think about the best strategy, consider these basics first: END
 TITLE: Should I Pay Off Debt Before I Invest? CONTENT: Look at Debt APR vs. Your Investment's Expected Return\n------------------------------------------------------\nOnce you have your basic needs taken care of, the easiest way to decide whether you should pay off debt or invest is to look at the interest associated with both choices.\nIf you know the rate your investment portfolio—or an investment such as a mutual fund or stock you're considering if you don't already have a portfolio—earns, use it as a benchmark to determine which debts to pay off before you invest.\nSay your portfolio yield is 7.5%. If you have credit card debt at a 17% interest rate, you'd effectively be earning 17% in the form of interest savings when you eliminate that debt. On the flip side, if your only debt is an auto loan that charges a 3.5% annual percentage rate (APR), you'll earn more by investing your extra cash than by using it to pay down the car loan more quickly.\nDebts such as payday loans, auto title loans and personal loans with repayment terms of less than one year generally charge very high interest rates, and thus paying them down should almost always take priority over investing.\nIn some cases, you may see an interest rate instead of an APR—the two are not the same. While an interest rate represents how much interest the lender is charging you to borrow money, the APR represents the full cost of financing, including fees and other charges. Use an online APR calculator to find out what you can expect to pay on your debt. END
 TITLE: Should I Pay Off Debt Before I Invest? CONTENT: How to Start Investing\n----------------------\nIf you don't have any high interest debt, investing your extra cash flow can help you create a better life in the future.\nIn general, the best place to start with investing is your retirement account. Experts at Fidelity Investments recommend putting at least 15% of your annual income toward retirement. Whether you do that through a work-sponsored retirement plan or an individual retirement account (IRA) is up to you, but make sure you're never leaving any money on the table, such as from an untapped employer match to your 401(k).\nBeyond retirement, the right investments for you will depend on your risk tolerance. Risk tolerance is a term used to describe your ability to withstand a certain degree of volatility in your investments.\nFor example, stocks are generally riskier than bonds, and mutual funds can help provide diversification among stocks, bonds and other investments to reduce the risk from each one individually.\nFactors that help determine your risk tolerance include your age, income, lifestyle and when you'll need the money.\nSomeone who is 30 years away from retirement may have no problems with an aggressive stock portfolio, because their long-term investment can weather the ups and downs of the stock market. If you're two years from retirement, however, a market downturn could wipe out a significant chunk of your investment right when you need it for living expenses. In that case, you might have a lower risk tolerance. END
 TITLE: Should I Pay Off Debt Before I Invest? CONTENT: It Doesn't Have to Be All or Nothing\n------------------------------------\nAs you approach saving, investing and paying off debt, keep in mind that you don't have to focus on just one thing at a time. If you do, it could end up taking longer to start working on each of your goals, which could delay your success.\nLook to find a balance between your savings, investing and debt payoff plans. While it can take a little longer to achieve each goal this way, it can give you a more well-rounded financial foundation and pay off in the long run.\nAlso, it's important to keep your emotional needs during this process. For example, if you're experiencing significant stress over your low interest car loan, the peace of mind that comes from paying it off may be more worth it to you than your investment returns.\nFinally, keep in mind that investing doesn't come with guaranteed growth. Any average or likely rates of return you may see are often based on long-term performance, and you may experience higher highs and lower lows—even negative growth—in the short term.\nAs you try to find the right strategy for you, it may be worth working with a financial advisor, who can not only provide valuable advice about what to do with your money but can help you find good investment options if you choose to take that route. END
 TITLE: Should I Withdraw Money from My 401(k) or IRA? CONTENT: What Is a 401(k) or IRA Withdrawal?\n-----------------------------------\nTypically, an early withdrawal from a 401(k) or IRA can be done when you're facing what the IRS describes as \"an immediate and heavy financial need.\"\nWhat are the circumstances when you might qualify for a 401(k) withdrawal before age 59½? Examples include:\n*   Out-of-pocket medical expenses\n*   Home purchase\n*   College tuition, dorm fees and related costs\n*   Prevention of an apartment eviction or home foreclosure\n*   Funeral expenses\n*   Some home repairs\nFor a traditional IRA, you might be eligible for a withdrawal before age 59½ to:\n*   Cover expenses related to a birth or adoption\n*   Pay health care expenses that can't be reimbursed\n*   Make a first-time home purchase\n*   Cover college expenses\n*   Pay for health insurance when you're unemployed\nIf you withdraw from a 401(k) plan, you'll pay a 10% penalty and income taxes on the amount withdrawn. When you withdraw from a traditional IRA, you'll pay a 10% penalty on the amount withdrawn.\nIf you have a Roth IRA, you can often make a tax-free and penalty-free withdrawal before age 59½ for certain things, such as a first-time home purchase, birth or adoption expenses, or college costs. Otherwise, taxes and penalties likely will kick in if you withdraw money before age 59½.\nWithdrawals from all of these accounts also are allowed when an account's owner dies or becomes disabled. END
 TITLE: Should I Withdraw Money from My 401(k) or IRA? CONTENT: What Is a 401(k) Loan or IRA Loan?\n----------------------------------\nWith a 401(k) loan, you can borrow money from the account for most any reason. You would repay that money just as you would with a traditional loan. You're not allowed to take out a loan from a traditional or Roth IRA.\nYou won't pay any income taxes or penalty fees on the 401(k) loan amount. You will be charged interest on the loan, though. Fortunately, the interest payments are funneled back into your 401(k) when you repay the loan.\nA 401(k) loan doesn't involve a lender such as a bank or credit union. A credit check isn't required, and your credit reports and credit scores aren't affected. You can borrow as much as 50% of your vested 401(k) account balance or $50,000, whichever is lower.\nOnce you authorize the loan, you'll receive it in your next paycheck or in your checking account if you have direct deposit. END
 TITLE: Should I Withdraw Money from My 401(k) or IRA? CONTENT: How Are Withdrawals and Loans Different?\n----------------------------------------\nWhen you withdraw money from a 401(k) or an IRA, you're not required to pay it back. But when you take out a 401(k) loan, you're borrowing the money, so you are required to pay it back.\nYou're usually given five years to pay back a 401(k) loan. If you're using the money to buy a primary residence, you might be eligible for a 25-year payback period.\nThe main difference between a loan and a withdrawal, however, is that with a loan, you pay back your retirement account so it can begin earning money for your retirement again. Because you don't pay back a withdrawal, that money is no longer working toward your retirement savings—unless you are able to invest it at a later date in a traditional IRA or Roth IRA plan. END
 TITLE: Should I Withdraw Money from My 401(k) or IRA? CONTENT: Should You Withdraw From Your Retirement Account if Cash Is Tight?\n------------------------------------------------------------------\nGenerally, financial experts advise against taking money, whether in the form of a withdrawal or loan, out of your 401(k) or IRA. That's true even now during the COVID-19 (coronavirus) crisis, which has shuttered millions of businesses in the U.S. and put millions of Americans out of work. END
 TITLE: Should I Withdraw Money from My 401(k) or IRA? CONTENT: The Case for Pulling Money from Your Retirement Accounts\n--------------------------------------------------------\nIn some instances, however, taking money out of a 401(k) or IRA might be your best bet.\nFor example, if you've been laid off and lack an emergency fund or a backup plan, you could be struggling to pay rent, buy groceries and cover other necessities. In that situation, pulling cash from a 401(k) or IRA might be the only way you can keep a roof over your head and food on your table.\nKeep in mind that most financial advisors say these withdrawal and loan options should be a last resort.\nSpeaking of resorts, it's not a great idea to pay for nonessential expenses like a vacation with money from a 401(k) or IRA. Likewise, you should steer clear of a withdrawal or loan from your retirement account to buy new furniture or cover wedding expenses. First and foremost, your retirement account should be reserved for your retirement. It's best to save up for a vacation, new furniture or wedding by setting up a bank account solely for that purpose and carefully budgeting. END
 TITLE: Should I Withdraw Money from My 401(k) or IRA? CONTENT: What Are the Alternatives to a Retirement Withdrawal or Loan?\n-------------------------------------------------------------\nWhen it comes to borrowing money, you've likely got other options before you if your credit is in a good place. Before you resort to withdrawing or borrowing money from your 401(k) or IRA, investigate these alternatives:\n*   Tighten your budget and start to save.\n*   Withdraw from checking, savings or stock accounts.\n*   Use a health savings account, or HSA, to cover eligible medical expenses.\n*   Tap your emergency fund.\n*   Take out a personal loan, home equity loan or borrow from friends or family.\n*   Use a credit card with a 0% interest offer to pay off a purchase over time.\n*   Negotiate your payments or interest rates with creditors.\n*   Get a part-time job or side gig as a food delivery driver or grocery store stocker.\n*   Contact a qualified credit counselor.\nBankruptcy is another option. But you should exhaust all other alternatives before seriously considering bankruptcy. As long as a bankruptcy stays on your credit reports, it'll be harder to obtain credit. Furthermore, it could hurt your ability to rent an apartment, sign up for utilities or get a job.\nVisit with a credit counselor or financial adviser before diving into bankruptcy. END
 TITLE: Should I Withdraw Money from My 401(k) or IRA? CONTENT: The Bottom Line\n---------------\nBefore you look at taking money out of a 401(k) or IRA, take a look at the alternatives—and at your future.\nWould you be able to make it through your financial crunch by relying on an emergency fund or cutting your budget? Or have you exhausted other options and face an immediate future that would be too rough without tapping into a retirement account? And how soon do you plan on retiring?\nIf you do settle on a 401(k) withdrawal, IRA withdrawal or 401(k) loan, try to get back on track with your retirement investing as soon as you can. And if you borrow money from your 401(k), aim to repay the loan as quickly as possible. These moves will help you build a stronger nest for your nest egg. END
 TITLE: How to Build Wealth CONTENT: Learn to Live Within Your Means\n-------------------------------\nHigh income doesn't necessarily lead to wealth. Perhaps you've seen news stories about celebrities or athletes who made millions and then declared bankruptcy. Or, conversely, the teacher or janitor who slowly amassed a fortune and gave millions to charity at the end of their life.\nNo matter your income, spending less than you earn and putting the difference into savings is a tried-and-true way to increase your net worth over time. Otherwise, you could wind up living paycheck to paycheck even if you're making millions.\nIf saving is your goal, it's important to create and follow a budget. There are many ways to make a budget, and different types of budgets and budgeting software. Aggressive savers may consider the 50-30-20 plan that limits spending in certain categories (50% of your budget goes to required expenses, 30% to buying \"wants\" and the remaining 20% goes to managing debt or saving).\nAs with any new skill or practice, it can take time to get into the swing of things. Try out a few systems and tools to figure out which one you like the most. END
 TITLE: How to Build Wealth CONTENT: Find Ways to Save Money\n-----------------------\nLearning and practicing money-saving habits can make it easier to live within your means. These can come in many forms, from looking for sales and coupons to using cash back credit cards on purchases you were going to make anyway.\nYou can also look for ways to lower your monthly payments, such as negotiating lower rates on internet and cable services, comparison shopping insurance policies and making lifestyle changes to use less energy at home.\nOnce you've built up your savings, it's easier to find additional opportunities—such as paying for high-quality goods rather than inexpensive ones that you need to replace frequently. Or, getting a discount on a membership or bill by offering to pay the full amount upfront. END
 TITLE: How to Build Wealth CONTENT: Pay Down Any Existing Debt Quickly\n----------------------------------\nIf you're saving and investing, compound interest can help your money grow exponentially. But when you owe others money, the math works against you—the longer you take to pay off debt, the more interest you'll wind up paying overall.\nWith this in mind, consider some of the tactics you could use to more quickly get out of debt:\n*   Try the avalanche or snowball debt repayment strategies to either pay as little interest as possible or stay motivated while paying off debts.\n*   Consider a balance transfer credit card that allows you to transfer other debts and pay off the balance during the promotional period (often 12 to 21 months) without paying any interest.\n*   A debt consolidation loan could also help lower your costs as you combine high interest debts into the new, lower rate loan.\n*   Look for ways to increase your income, and put the extra money toward your highest-rate debt.\nEven with the best tactics in play, paying off all your debts can take time. Patience and perseverance are often the keys to success. END
 TITLE: How to Build Wealth CONTENT: Use Credit Wisely\n-----------------\nBuilding your credit and using credit wisely can also be important. Having excellent credit can make it easier to access different types of financial products, and help you qualify for the best rates and terms on a new loan or credit card.\nAn example of using your good credit to build wealth could be when you've saved up money to buy a new car with cash, but you also qualify for an introductory 0% financing offer on an auto loan.\nYou could take the 0% financing offer and put your savings into a low-risk investment, such as a certificate of deposit. Then, you can collect interest on your investment, knowing that you can pay off the loan before the 0% rate ends.\nHowever, whether your credit is poor, excellent or nonexistent, you still want to be careful when taking on new debt. Avoid taking out loans for wants rather than needs, and always pay your credit card and loan bills in full each and on time month. END
 TITLE: How to Build Wealth CONTENT: Don't Be Afraid to Invest Early\n-------------------------------\nFiguring out whether to pay down debts or save and invest can be an ongoing challenge.\nIn short, if you're making long-term investments in index funds (such as retirement savings that you don't expect to touch for 20 to 30 years), you might expect an approximate 8% to 10% annual return on your investments. Focus on paying down debts that have a higher interest rate first, then investing and then paying off low rate debts.\nStarting to invest early can be especially important, as you have years of potential growth ahead of you. For example, if you invest $100 a month and earn an average of 8% each year, you'll have nearly $55,000 after 20 years—and almost $136,000 after 30 years. END
 TITLE: How to Build Wealth CONTENT: Consider Buying a House\n-----------------------\nHomeownership isn't right for everyone, but buying a home could be a potential path toward building wealth. If you choose to pursue it, there are first-time homebuyer programs available that can make buying your first home easier.\nWhile you'll need to pay for maintenance, repairs, insurance and property taxes, you may also be able to deduct some of your mortgage interest and property tax payments from your income and save money come tax time. You'll also be building equity (ownership) in your home when you pay monthly mortgage payment, rather than paying a landlord.\nThe big benefit comes when you sell your home after it increases in value. As long as the home was your primary residence for two out of the past five years, you won't have to pay federal income taxes on your first $250,000 of profit (or $500,000 if you're married and file a joint tax return). The exclusion applies to every home you sell, not just your first one. END
 TITLE: How to Build Wealth CONTENT: Focus on Your Goals for Building Wealth\n---------------------------------------\nIf you want to build wealth, consider starting by defining what wealth means for you and writing down your personal goals. If you compare yourself to the wealthiest members of society, you might be compelled to spend money to keep up with others but never feel satisfied. Focusing on your personal goals could be the key to building wealth, feeling content and avoiding lifestyle inflation. END
 TITLE: How to Budget Before and During Pregnancy CONTENT: Expenses to Consider During and After Pregnancy\n-----------------------------------------------\nWhile the latest jogging stroller and nursery decor may be fun to shop for, there's a wide range of costs during and after pregnancy to be aware of. From health care and work leave to diapers and onesies, these expenses will need to be part of your budget as you prepare for childbirth and beyond. END
 TITLE: How to Budget Before and During Pregnancy CONTENT: How to Budget for Baby Costs\n----------------------------\nBudgets come as a breeze for some people; for others, there are strategies and apps galore to help you with the task. Regardless, add a baby to the picture and budgeting inevitably gets more complex. If you've never had a budget before, now is the time to start.\n1.  Map out your spending on paper. Begin by following where each dollar goes so you account for your spending. Go through bank and credit card statements and hold on to your receipts so you can physically see where your money goes each month. Apps like You Need a Budget can be particularly helpful during this beginning stage.\n2.  Find a budgeting method that works. It might be a good time to assign a job for every dollar with zero-based budgeting or divvy up your earnings into different accounts. The 50\/30\/20 rule divides your budget into necessities, discretionary items and a third category for debt payments and savings. Research a few strategies and choose one you'll be able to stick with long-term.\n3.  Check your health insurance. Insurers technically have to cover childbirth and maternity care, but coverage differs from one plan to the next. Check out the details for your provider's coverage, and add your spouse's insurance as secondary coverage if you feel it necessary. Adding a family member to an insurance plan will likely increase the cost, so find out what additional longer-term insurance costs you may be facing.\n4.  Spend and save wisely. For starters, buy diapers in bulk for significant cost savings (or consider going the cloth-diaper route), and use free samples and coupons. Beyond baby costs, come up with ways to save money daily and monthly, and be sure you have an emergency fund in place for unexpected necessary expenses.\n5.  Consider any income changes. If either parent plans to work less during child-rearing years, that will need to be a major factor in your number-crunching. END
 TITLE: How to Budget Before and During Pregnancy CONTENT: Expect the Unexpected\n---------------------\nThe unexpected costs associated with pregnancy and child-rearing can throw off even the best-planned budgets. A budget will still be an enormous advantage, as will putting aside emergency funds and diligently covering all the bases we mentioned here—but unpredictable financial needs will likely arise at some point. You may find yourself taking out a loan or using credit cards for expenses, but doing so responsibly doesn't have to put you in a difficult financial position or hurt your credit.\nAs you consider your finances for the coming years, keep your credit in mind. Adding free credit monitoring and focusing on paying down debts can boost your creditworthiness and open doors for future loans, perhaps for a new home or a bigger car in the garage.\nKids pick up on your financial practices early (usually by age 3), so getting your budget and credit in order now can make teaching them about money easier later on. Budgeting before and during your pregnancy doesn't mean parenting will be cheap—but it does mean you'll be more prepared when your priceless little one arrives. END
 TITLE: How Do You File an Amended Tax Return? CONTENT: Some tax return mistakes are caught and corrected by the IRS when it reviews your return. Other times, you may come across new information (perhaps a tax deduction you didn't know you could claim) or realize an error (mistakenly claiming a dependent), which you'll need to correct by filing an amended tax return. It's important to fix a mistake on your taxes, even if it leads you to owe more money than planned—it's better to update your return now than chance an IRS audit or steep fines later.\nConsider filing an amended return if you need to make any of the following changes:\n*   Adjusting the filing status on your tax return\n*   Claiming a different income amount\n*   Correcting the deductions you claimed (or failed to claim)\n*   Correcting the tax credits you claimed (or failed to claim)\n*   Changing the status of your dependents\nFor some errors, you might not need to file an amended return. Mistakes that may not require you to file an amended tax return include:\n*   **Mathematical errors**: Per the IRS, many mathematical errors are caught when tax returns are processed. When math errors are detected, the IRS typically handles them.\n*   **Missing forms**: Did you forget to attach a tax form to your original return, like a W-2 or 1099? If so, the IRS may mail you a request for this missing information when it processes your return.\nIf you're considering filing an amended return due to one of the mistakes above, the IRS advises you to wait until receiving the refund (if applicable) from your original return first. Then you can file an amended return to claim any additional refund amount. From there, you'll have to be patient: Amended returns typically take up to 16 weeks to process, according to the IRS. END
 TITLE: How Do You File an Amended Tax Return? CONTENT: Steps for Filing an Amended Tax Return\n--------------------------------------\nBefore you file your amended tax return, wait until your original tax return is completely processed and you have received your refund or paid any amount due. If you're amending your 2019 taxes and filed the original tax form electronically, you can opt to file your amended return electronically; however, you must submit amended tax returns for all other years in paper form by mailing them to the IRS.\nGo through each step carefully to minimize any chance of errors. END
 TITLE: How Do You File an Amended Tax Return? CONTENT: Do Taxes Impact My Credit Report?\n---------------------------------\nThere was a time when not paying your taxes had the potential to show up on your credit reports and, by extension, hurt your credit scores. In the past, both paid and unpaid tax liens could appear on your credit reports from all three major credit bureaus (Experian, TransUnion and Equifax). Today, while it's not ideal for your financial health to put off paying your taxes (and it could eventually cost you more), unpaid taxes won't damage your credit.\nWhile your taxes may not directly damage your credit report, anything you owe to the IRS can ultimately cause you to incur additional debt and penalties. END
 TITLE: How Do You File an Amended Tax Return? CONTENT: How to Use Your Tax Return to Impact Your Credit Score\n------------------------------------------------------\nIf you're getting money back based on your original or amended tax return, you can use that refund to help boost your credit score. Make sure to prioritize catching up on any late bills first (payment history affects your credit score more than any other credit scoring factor). Then, put your refund to good use:\n*   **Pay off credit card debt.** If you use your return to put a dent in your credit card debt, you can reduce your credit utilization ratio, which reflects how much of your available credit you're using. Lower credit card balances typically help credit scores.\n*   **Pad your emergency fund.** Contributing to your personal emergency savings may not sound as exciting as a refund-sponsored shopping spree, but it can be a boon for your credit and finances in the future. Dedicating a savings account just for emergencies can help you dodge financial disasters in case of unexpected expenses such as a needed home repair or urgent medical procedure. END
 TITLE: How to Finance a Next-Gen Gaming Console CONTENT: How Does Financing Work for Xbox All Access?\n--------------------------------------------\nXbox Access is a subscription service that Microsoft launched in 2018. The program allows gamers to pay for an Xbox console over time instead of paying upfront. In addition to the console, you'll also gain access to Xbox Game Pass Ultimate, which includes a library of 100 games, the ability to play games online via Xbox Live and more. Game Pass Ultimate usually costs $14.99 per month on its own.\nWith the Xbox Series X ($499) and lower-spec Xbox Series S ($299) coming on November 10, you can pre-order the console or wait until launch and join Xbox All Access through Microsoft, Best Buy, Walmart, Target or GameStop. There are three tiers for the program:\n*   For $34.99 per month over 24 months, you'll receive the Xbox Series X and two years of Xbox Game Pass Ultimate. Total cost: $839.76\n*   For $24.99 per month over 24 months, you'll receive the Xbox Series S and two years of Xbox Game Pass Ultimate. Total cost: $599.76\n*   For $22.99 per month over 24 months, you'll receive the previous-gen Xbox One S, two years of Xbox Game Pass Ultimate and the option to upgrade to an Xbox Series X after 18 months. Total cost: $551.76\nThere are no upfront costs for Xbox All Access financing. Note that there's no option to finance just the console, so if you want the console but not Xbox Game Pass Ultimate, you'll need to find another financing option. END
 TITLE: How to Finance a Next-Gen Gaming Console CONTENT: How Financing for Xbox All Access Affects Your Credit\n-----------------------------------------------------\nThe financing comes in the form of a line of credit from lender Citizens One, not Microsoft. Citizens One will run a hard inquiry on your credit report to determine if you qualify for the 0% APR financing.\nUsually, a line of credit works similarly to a credit card in that you can borrow up to the limit on the account, pay it off and borrow again. In this case, however, there's no indication that you'll be able to access the line of credit beyond what you need to pay for your Xbox All Access subscription.\nCitizens One doesn't disclose a minimum credit score requirement to qualify. Generally, with lines of credit and 0% APR financing, the higher your credit score, the better your chances will be to qualify. The lender also doesn't indicate whether it reports your on-time payments to the three national credit bureaus, but it may report late payments. END
 TITLE: How to Finance a Next-Gen Gaming Console CONTENT: Does PS5 Offer Financing Options?\n---------------------------------\nSony doesn't provide a financing option for its PlayStation 5 console that'll launch in the U.S. on November 12 and cost $499 ($399 for the Digital Edition, which lacks a disc drive). However, GameStop has announced that it will offer several ways to purchase the PS5, including layaway payments, a rent-to-own plan and installment payments through third-party companies—the last option is similar to Microsoft's arrangement with Citizens One. END
 TITLE: How to Finance a Next-Gen Gaming Console CONTENT: Why a Credit Card Might Be a Better Option for Your Next Gaming Console\n-----------------------------------------------------------------------\nWhile there will be options available to finance your next-gen console purchase through a retailer or a third-party lender, using a credit card may be a solid alternative.\nMany credit cards offer introductory 0% APR promotions that allow you to make a purchase and pay it off over time. You may also get a welcome offer (sometimes called an intro bonus), which could save you money on the cost of the new console. Consider the following cards:\n**Chase Freedom Unlimited®****:** This card offers an intro bonus and an intro $0% APR promotion. You'll earn a 200 bonus after you spend $500 in the first 3 months and 5% back on your first $12,000 spent at grocery stores during the first 12 months (though Target and Walmart don't count). You'll also get an intro 0% APR on purchases for 15 months, as well as rewards on your ongoing purchases. Once the promotional 0% interest period is over, your ongoing rate climbs to a variable 14.99% to 23.74% APR.\nWith a new Chase Freedom Unlimited®, if you spend $500 on the Xbox Series X (ignoring taxes), your net cost will come down to about $300 thanks to the card's $200 welcome offer, and that's not including the card's base cash back rewards rate of 1.5%.\n**Capital One Quicksilver Cash Rewards Credit Card**: The card offers an intro 0% APR on purchases for 15 months, plus a welcome bonus of $200 after you spend $500 in the first 3 months. The bonus is as big as the one offered by the Chase Freedom Unlimited®, and can reduce your net cost significantly. Once the 0% APR period ends, the card's ongoing rate climbs to a variable APR of 15.49% to 25.49%.\nTo give you an idea of how much you can save, let's say you open a new Capital One Quicksilver Cash Rewards Credit Card account and charge $500 to purchase an Xbox Series X (again ignoring taxes). You'd get $200 back, which reduces your net cost to $350. Then, if you make no other purchases and pay $25 per month—the minimum payment as of October 2020—you'd pay off the balance within 14 months with no interest. Also consider the cost of taxes, accessories and games when planning your payments, since those extra costs can change your payoff strategy. Use a credit card payoff calculator to make sure you can pay in full by the time interest kicks in.\nTo contrast, let's take a look at what you'd pay if you used one of your current credit cards to make the $500 purchase. With a 16% APR (near the national average) and a 15-month repayment period, you'd have a $37 monthly payment, and pay $54 in interest. Factoring in taxes and other costs, your payment would be even higher. END
 TITLE: How to Finance a Next-Gen Gaming Console CONTENT: Check Your Credit Before Applying\n---------------------------------\nJust about any type of financing you might pursue to help you purchase your next-gen console will require a credit check, and if your credit score isn't in good shape, you may have a hard time getting approved.\nSo, before you apply for financing or a credit card, check your credit score to see where you stand. If it needs some work, check the risk factors that accompany your credit score to get an idea of the areas you can make improvements, then take steps to build a positive credit history. This process can take time, but there are some ways to improve your credit score fast.\nOnce you secure financing, be sure to make all payments on time and keep your credit utilization low (if you're financing with a credit card) to make sure you don't do any harm to your credit. Credit cards and other financing options can be a great way to pay off a console over time, but be sure you're only exploring these options if you're confident you can pay off the purchase in full. END
 TITLE: Using Credit to Bridge the Gap When You’re Living Paycheck to Paycheck CONTENT: How Credit Cards Can Help When You're Low on Cash\n-------------------------------------------------\nCredit cards generally have higher interest rates than other types of debt, but they can be an effective tool when you're in between paychecks. They're almost always less expensive than common last resort forms of financing, such as payday loans, and are a way to avoid expensive overdraft fees when money's already tight.\nIf you use a debit card, you may be charged an overdraft fee if a payment pulls from your bank account when you don't have enough funds available. Overdraft fees are often $30 or more, and some banks charge a fee every day your account has an overdrawn balance. If your bank's overdraft fee is $30 and you're overdrawn for three days, you'll end up owing nearly $100 in fees.\nWith responsible usage, a credit card can be a less expensive way to make necessary purchases. A credit card won't charge you any interest or fees if you repay the statement balance on or before the due date.\nHere's how it works. If you buy $50 worth of groceries with a credit card, you'll typically be able to carry that balance for a certain period before interest accrues. This so-called grace period is at minimum a 21-day gap between when your credit card's billing cycle ends and the payment is due.\nWhen your next paycheck arrives, you'll repay the credit card in full by your payment due date. This strategy lets you bridge the gap in between paychecks without owing more in fees or interest.\nYou may run into trouble if you don't repay the bill in full, because the credit card company will charge interest on the statement balance. If you can, it's important to always pay the credit card bill in full. END
 TITLE: Using Credit to Bridge the Gap When You’re Living Paycheck to Paycheck CONTENT: Why You Should Build Credit When Living Paycheck to Paycheck\n------------------------------------------------------------\nBuilding a high credit score takes time, and it's not something you can do overnight. If you get into a jam and need credit to hold you over between paychecks, a good credit score could mean the difference between securing a high interest rate or a low one.\nThe habits that contribute to a high credit score can also improve your overall financial life. The first and most important habit you can learn is to pay all your bills on time. Payment history is the most important factor in computing your credit score and is responsible for as much as 35% of your score. Demonstrating on-time payment history convinces lenders that you can be trusted to make payments.\nThe second most important factor in a credit score is your utilization ratio, which measures your credit card debt relative to your total credit limit. Lenders like to see a ratio of 30% or less, and anything more will start to ding your credit score.\nOther factors include the number of recent hard credit inquiries on your credit report, how long your credit accounts have been open and whether you have a mix of different credit types.\nCheck your credit score regularly to measure your progress. It can take several months to build a good score, but it takes much longer to rebuild a bad one. END
 TITLE: What Is a Budget? CONTENT: How Budgeting Works\n-------------------\nThe word \"budget\" can have a negative connotation and evoke feelings of constraint or restriction. But a budget is merely a tool you can use to take control of your money and make sure your habits match your ambitions.\nTo start, you'll track your income and expenses. You'll also create specific categories for your expenses, which often get split into fixed (or necessary) expenses and variable (or discretionary) expenses.\nYour fixed expenses could include regular bills, such as rent, debt payments, utilities and transportation. Variable expenses could be for entertainment, dining out and other spending you can determine—they're often wants rather than needs.\nThe categories you choose should reflect your goals. For example, if you're focused on increasing your savings, you could create a fixed expense for savings and set aside that money each month before allocating funds to your variable expenses.\nOver time, the amount of money you assign to each category can shift as your income, expenses and needs change. However, you always want your income to be equal to or greater than all your expenses each month. END
 TITLE: What Is a Budget? CONTENT: What Are the Benefits of Having a Budget?\n-----------------------------------------\nOften, people are surprised when they start tracking their expenses because they didn't realize how much (or how little) they spend throughout the month. But getting this insight and creating an intentional plan for your money can give you a greater sense of control.\nOnce you know exactly how much money you have coming in and how much you need for your fixed expenses, you can better plan your discretionary expenses. You might then look for ways to earn more money to meet your goals, or save money and free up room in your budget.\nOver time, budgeting could help you:\n*   **Get out of debt**: With your budget in mind, you'll know exactly how much money you can put toward your debt payments and how long it'll take you to get out of debt. You can make it a priority to get out of debt and move money from one of your \"fun\" categories to debt payments. If you keep track of your spending and stick to the plan, you may be able to get out of debt sooner and pay less interest.\n*   **Build an emergency fund**: An emergency fund can keep you from having to take on high interest debt to cover expenses from an unexpected setback. Create an emergency fund category in your budget and build up your fund every month. It can be helpful to open a separate savings account for your emergency fund, so you're not tempted to dip into it.\n*   **Stop living paycheck to paycheck**: Once you build up your savings, you can stop worrying about when you get paid and focus your attention on sticking to your budget. As long as your income continues to be equal to or more than your expenses each month, you'll be on track to pay all your bills each month. END
 TITLE: What Is a Budget? CONTENT: How to Create a Budget\n----------------------\nIt can be easy to try something for a few days or weeks, but budgeting is most effective when you can stick with it long term. Fortunately, there are many ways to create and manage a budget.\nSome people prefer using budget software that connects to their financial accounts. The software can automatically sync transactions, which makes it easy to run the numbers. Others prefer a more hands-on approach and use a notebook or mobile app to manually track their income and expenses. They can then analyze their income and expenses on paper, or enter them into a spreadsheet.\nOnce you decide how to gather your data, it's time to choose the type of budget you'll use. You might use a zero-based budget where you assign every dollar you earn to a specific category so your income equals your expenses each month. Or, maybe you'll use a 50-30-20 budget, where 50% of your income goes to necessary expenses, 30% goes to discretionary expenses, and the remaining 20% goes to paying down debt and building savings.\nYou might have to try a few different budgeting systems and types before you find one that's a good fit for your habits and financial goals. It can also take a few months to figure out how much money you need to set aside for each category. Don't give up. Budgeting can take practice and flexibility, but it can also make a big impact on your finances in the long run. END
 TITLE: What Is a Budget? CONTENT: How Budgeting Can Impact Your Credit\n------------------------------------\nYour credit report doesn't include your income or keep track of whether or not you budget. Budgeting can, however, have a positive impact on your finances and may indirectly help you improve your credit.\nFor example, if you're sticking to a budget, you may be less likely to fall behind and pay a bill late, which could hurt your scores. Or, you may be able to use a budget to make progress on paying down credit card balances, which could lower your utilization rate and help your credit scores. END
 TITLE: What Is a Budget? CONTENT: You Can Track More Than Your Money\n----------------------------------\nA budget can help you foresee financial problems, adjust to changes and take advantage of opportunities. Similarly, you can monitor your Experian credit report for free. You'll get alerts when there are important changes that could indicate fraud, such as a new account opening, and be able to react quickly. You can also use Experian's CreditMatch™ tool to get personalized credit card offers based on your credit history. END
 TITLE: Organize Your Finances With Our Year-End Financial Checklist CONTENT: Prepare for Tax Time\n--------------------\n*   Gather the documents you need to file your taxes, including:\n    *   Last year's tax returns.\n    *   Tax forms from employers and financial institutions including W-2, 1099, 1098 and 1095 forms. These must be mailed to you by January 31, so you may not have them yet; make a list of which ones you expect so you can be on the lookout.\n    *   Receipts supporting any tax deductions you plan to take, including medical expenses, child care expenses, educational expenses and charitable donations.\n*   Use the IRS' Tax Withholding Estimator to confirm that your employer is withholding the right amount of taxes from your wages. If you need to adjust your withholding, complete a new W-4 form for your employer.\n*   If you received unemployment benefits this year, visit the IRS website to see if they are taxable.\n*   If you expect your income to grow or shrink substantially in the coming year, talk to your tax preparer about steps you can take to reduce your taxes going forward.\n*   Before December 31, make any last-minute moves such as:\n    *   Making charitable contributions.\n    *   Using up your Flexible Spending Account (FSA). Employer deadlines for this may vary.\n    *   If you have a high-deductible health plan, consider opening a Health Savings Account (HSA). Money you contribute is tax-free; you have until April 15 of next year to contribute to an HSA for this year.\n*   If you expect a tax refund, decide how to use the money, such as:\n    *   Paying down debt\n    *   Starting or adding to your emergency fund\n    *   Contributing to a retirement account\n    *   Putting it toward next year's tax bill\n*   If you expect to owe taxes, make sure you've set aside enough money to pay them.\n*   Make an appointment with your tax preparer. END
 TITLE: Organize Your Finances With Our Year-End Financial Checklist CONTENT: Go Over Your Budget\n-------------------\n*   Review this past year's budget. What did and didn't work for you?\n    *   If your current budgeting methods and tools aren't working, look for a better way to track your spending.\n*   Assess your income and expenses, looking for places to save money.\n*   Revise your budget to reflect any changes to your income or expenses in the new year.\n*   If you don't have a budget, here's how to make one. END
 TITLE: Organize Your Finances With Our Year-End Financial Checklist CONTENT: Assess Your Savings\n-------------------\n*   Evaluate your emergency fund. Will it cover three to six months' worth of expenses? That's the goal, but even if you haven't saved that much, continue to work toward building up this important safety net. If you don't have an emergency fund, start one.\n*   Do you need to save for any big expenses or goals next year? If so, develop a budget for this so you can start setting aside the money you'll need.\n*   Consider setting up automated transfers to your savings account(s) to help build your emergency fund and other savings. END
 TITLE: Organize Your Finances With Our Year-End Financial Checklist CONTENT: Pay Down Debt\n-------------\n*   Find out if you could save money by refinancing your mortgage, car loan or student loan.\n*   If you have high-interest debt, make a plan to pay it down. If you don't have enough extra money in your budget to make a big dent, consider these options:\n    *   Investigate 0% introductory balance transfer offer credit cards. Transferring high-interest balances to a card with a temporary 0% interest intro period can save you a lot of money in interest. The key is making a plan to pay off the balances before the intro period ends and you begin paying a standard interest rate.\n    *   Research debt consolidation loans and personal loans. These could offer lower interest rates than you're currently paying on credit cards and make payments easier to manage since you'll just have one payment to make each month.\n    *   Consider contacting a credit counseling agency to create a debt management plan for you.\n    *   Consider getting a second job to help pay down debt.\n*   Review your credit cards.\n    *   Could you benefit from a rewards card or cash back card? If you're looking into cards that provide extra perks, make sure you'll be able to pay off the balance each month—otherwise, you could pay more in interest charges than your rewards could earn you.\n    *   Make sure you're utilizing less than 30% of your available credit for each card and across all your cards at all times. Anything higher could hurt your credit scores.\n    *   Keep existing credit card accounts open even if you aren't using them; closing them may negatively affect your credit score. END
 TITLE: Organize Your Finances With Our Year-End Financial Checklist CONTENT: Examine Your Insurance Coverage\n-------------------------------\n*   Set up an appointment with your insurance agent to review your coverage, including homeowners insurance, renters insurance, auto insurance and life insurance.\n*   Make sure your life insurance policies list the correct beneficiaries.\n*   Consider getting long-term care insurance.\n*   Look for ways to reduce insurance premiums, such as dropping unnecessary coverage or increasing deductibles.\n*   During open enrollment, review your employer's health, life, disability and other insurance benefits and make your selections based on your current and future needs. END
 TITLE: Organize Your Finances With Our Year-End Financial Checklist CONTENT: Review Your Retirement Accounts and Other Investments\n-----------------------------------------------------\n*   If you aren't already contributing to an employer-sponsored retirement plan such as a 401(k), sign up and set up automatic monthly contributions from your paycheck.\n*   If you do contribute to an employer-sponsored retirement plan, try to contribute the maximum allowable amount. At minimum, contribute enough to maximize any employer matching contributions your company makes.\n*   If you're over 50, take advantage of catch-up contributions to retirement plans.\n*   If you have a 401(k) plan from a former employer, make a plan to roll it over into a new retirement account.\n*   Once your employer-sponsored plan is maxed out, consider opening another retirement account such as a traditional IRA or Roth IRA.\n*   Review your investment results over the past year and rebalance your portfolio if needed.\n*   Make sure all your investment and retirement accounts list the correct beneficiaries.\n*   Set up an online Social Security account to estimate your expected retirement benefits and help with retirement planning.\n*   If you have children, consider setting up a 529 plan to fund their college educations. END
 TITLE: Organize Your Finances With Our Year-End Financial Checklist CONTENT: Make or Update Your Estate Plan\n-------------------------------\nAn estate plan may include a will, a living trust, a living will, a health care or financial power of attorney and a plan for your funeral arrangements.\n*   Make sure your estate plan lists the correct beneficiaries and that your documents are in a safe place.\n    *   If you've had major life changes since creating your plan, update it accordingly.\n*   If you don't have an estate plan, create one.\n    *   If you have a complex family situation or lots of assets, consult an estate planning attorney.\n    *   If your estate planning needs are minimal, you may be able to create your own documents at Nolo, LegalZoom, RocketLawyer or other self-help legal sites.\n    *   If your needs are somewhere in between, many attorneys offer flat-fee estate planning packages at a reasonable cost. END
 TITLE: Organize Your Finances With Our Year-End Financial Checklist CONTENT: Check Your Credit\n-----------------\n*   Get copies of your credit score and your credit report from all three consumer credit bureaus (Experian, TransUnion and Equifax).\n*   If your credit score needs help, take these steps to improve it:\n    *   Pay all your bills on time.\n    *   Pay down credit card balances to keep your credit utilization rate at 30% or less.\n    *   Avoid opening new credit accounts unless necessary.\n    *   Keep existing credit accounts open, even if you don't use them.\n    *   Sign up for Experian Boost™† , a free service that can help increase your credit score by giving you credit for on-time utility, cellphone and streaming service payments.\n*   Set up credit monitoring to protect your credit. Experian's free credit monitoring service will alert you of changes and inquiries on your credit report and accounts.\n*   If you find any inaccuracies in your credit report, dispute them with the appropriate credit bureau.\n*   If you'd like professional help with your finances and investments, consider using a financial planner. The National Association of Personal Financial Advisors (NAPFA) is a good source.\n*   Go through your financial records, tax documents and financial account statements, shredding any you don't need.\n*   Consider digitizing financial records to save space and paper.\n### Learn More\n*   What Affects Your Credit Scores?  \n    Knowing what factors and types of accounts affect your credit score is the first step to improving your credit—which could save you thousands over time.\n*   6 Steps to Financially Prepare Before Having Kids  \n    It’s no secret that having kids is expensive, but there’s plenty you can do to prepare financially if you start early. Here are six ways to get ready.\n*   What Is Financial Planning and How Can it Help Me?  \n    Financial planning involves establishing a strategy for your financial life. Here’s how it works and why it can help you.\n*   How to Start Investing  \n    To start investing, it's important you create a strategy and stick to it over the long term. END
 TITLE: Organize Your Finances With Our Year-End Financial Checklist CONTENT: *   If you'd like professional help with your finances and investments, consider using a financial planner. The National Association of Personal Financial Advisors (NAPFA) is a good source.\n*   Go through your financial records, tax documents and financial account statements, shredding any you don't need.\n*   Consider digitizing financial records to save space and paper. END
 TITLE: 7 Budgeting Tips to Try After a Pay Cut CONTENT: 1\\. Create a Budget\n-------------------\nHaving a financial roadmap can help reduce stress during periods of fluctuating income. In fact, a 2019 survey Certified Financial Planner Board of Standards found that 62% of consumers who follow a budget feel more in control. There's more than one way to budget, so we unpacked a few strategies you can explore to blend your personality and spending style.\n*   **Zero-based budget**: This type of budget has you list out and align all your expenses with your expected income over a certain period of time—the calendar month or your pay cycle, for instance. Your goal is to account for every dollar and avoid overspending by assigning dollar amounts to each financial goal and spending category (such as your retirement fund or entertainment expenses) until there's nothing left to account for.\n*   **50\/30\/20 budget**: Maintaining a 50\/30\/20 budget allows you to have more balance and control in your monthly spending. It divides your expenses into three categories and provides a framework for how much of your income each category should consume: 50% for necessities, up to 30% for discretionary spending, and at least 20% for financial goals like saving and debt repayment. If your numbers skew too high in one category, that's OK. Consider trimming your discretionary spending or any fixed monthly bills to even things out.\n*   **Cash-only budget**: Research suggests that consumers typically spend less when using cash versus a credit card. To put this budgeting style to work for you, it may be easiest to set your recurring monthly bills to autopay with you card—but when it comes to things like entertainment, groceries and fun money, put a set amount of cash in corresponding envelopes until your next payday. When each one runs out, that money is gone, which makes it hard to overspend.\n*   **Dual-account budget**: With this method, you dedicate one bank account for fixed expenses and another for discretionary spending. Start by tallying up your monthly bills, then dividing that number by however many times you get paid in a month. If your bills add up to $2,400 per month and you receive two monthly paychecks, you'll deposit $1,200 from each check into the account that's earmarked for bills. The rest can go right into your spending account. Track the balance as you go to make it last until your next paycheck. END
 TITLE: 7 Budgeting Tips to Try After a Pay Cut CONTENT: 2\\. Track Your Spending\n-----------------------\nA budget doesn't do you any good unless you keep yourself accountable in sticking to it. Once your budget is established, take the time to look through your spending habits and adjust them as necessary. Review your recent debit and credit card statements and compare how much you spent against your budget. Doing this will identify areas where your spending could derail your budget if left unchecked. Being aware of your spending is the only way you can make sure your budget works in practice, and not just in theory. Some items to look out for include:\n*   Restaurant takeout and food delivery bills that are adding up.\n*   Fees for memberships or subscription services you could live without.\n*   Banking fees you were unaware of.\n*   Fraudulent activity.\n*   Discretionary purchases that exceed what you allowed yourself when creating your budget.\nSticking to a budget takes discipline, and you'll likely have to make some tough decisions to do it successfully. If you're trying hard but finding it impossible keep to the amounts set in your budget, adjust the numbers to create a more realistic plan and help you get back on track.\nExperian's Personal Finances tool accessible through your Experian account can help you budget, track your spending and keep everything ship shape. To access the tool, log in to your Experian.com account and click on \"Personal Finances\" at the bottom of the page. When you link your accounts, you'll see an easy-to-use rundown of your income and expenses. END
 TITLE: 7 Budgeting Tips to Try After a Pay Cut CONTENT: 3\\. Make Saving Automatic\n-------------------------\nSaving while navigating a pay cut may not feel top of mind, especially if you're focusing on making ends meet, but it's something you'll be thankful you did in the future. The pandemic has shown us that things can change in an instant, and having a strong emergency fund can provide peace of mind that reduces financial anxiety during uncertain times. A good goal is to eventually save three to six months' worth of expenses.\nIf money is tight right now, start small and celebrate the wins. Account for saving in your budget and adjust it as your income or spending changes. Automating your contributions can help make saving a habit. Even if you only put $100 a month toward savings, you'll have $600 set aside in six months' time. What's more, your emergency fund could save you from accumulating credit card debt if you encounter another financial bump in the road. Consider a high-yield savings account so you can earn while you save. END
 TITLE: 7 Budgeting Tips to Try After a Pay Cut CONTENT: 4\\. Cut Back on Restaurant Spending\n-----------------------------------\nFood spending makes up a good chunk of any household budget—especially these days. TD Ameritrade conducted a survey in April and May 2020 and found that the average American spent an extra $282 on groceries since the pandemic began. (The upside, however, is that many had saved a little less than that by not eating out.)\nIt's possible for an average family of four with older kids to spend as little as $680 per month on groceries, according to the most recent data from the U.S. Department of Agriculture. Here are some actionable ways to lean out your food spending:\n*   **Make a habit of meal planning.** Sketch out a weekly meal plan that's based around items you already have in your freezer and cupboards. It's a simple act that could stop you from ordering pricey takeout. Looking to low-cost grocery stores like Aldi, buying in bulk at Costco or other warehouse stores, and opting for store-brand products can drive up potential savings even more.\n*   **Go with pickup over delivery.** While convenient, food delivery apps come at a price. Popular platforms like Grubhub, DoorDash, Postmates and Uber Eats all tack on varying delivery fees. That's on top of whatever service fees may apply. When supporting local businesses, choosing to pick up your order yourself is almost always cheaper.\n*   **Look for local restaurant deals.** Before heading out, check to see if any local restaurants in your area are running any promotions. Some, for example, may offer buy-one-get-one deals or kids-eat-free specials on certain days. END
 TITLE: 7 Budgeting Tips to Try After a Pay Cut CONTENT: 5\\. See if Any Service Providers Are Offering Temporary Relief\n--------------------------------------------------------------\nYou may be able to temporarily reduce some of your bills until your income bounces back. Those with a federally backed mortgage may qualify for a 180-day forbearance (with the option to extend it another 180 days after that), thanks to the CARES Act. This pandemic relief legislation also allows borrowers with federal student loans to push pause on their payments, including interest, until the end of September.\nEven your car payment may be negotiable right now. Ford, for example, is letting borrowers delay payment or change their payment due dates in light of the pandemic. Contacting your service providers across the board could translate to significant savings. END
 TITLE: 7 Budgeting Tips to Try After a Pay Cut CONTENT: 6\\. Consider Refinancing Your Debts\n-----------------------------------\nWith interest rates being as low as they are, now might be a ripe opportunity to refinance debt—and free up some extra money in your budget. Refinancing involves taking out a new loan with a lower interest rate or longer repayment period, which can bring down your monthly payment. When done right, it can save you money in both the long and short term.\nYour mortgage, student loans and auto loans may all be on the table, but just because you can refinance doesn't always mean it's the most financially savvy thing to do. Refinancing a loan can involve costs that can make doing so tough to justify. Only refinance if you've considered these fees and factored them into your savings calculation. Another thing to keep in mind is that refinancing a federal student loan to a private loan means you'll lose protections like payment deferrals and income-driven repayment options. END
 TITLE: 7 Budgeting Tips to Try After a Pay Cut CONTENT: 7\\. Pick Up a Side Gig\n----------------------\nOne way to cope when experiencing a pay cut is to supplement your income. Picking up a side gig could be in order—and the internet has no shortage of work-from-home options. From writing to graphic design to programming, websites like Fiverr and Upwork are good jumping-off points for connecting with potential new clients. Just be aware that websites like these usually take a cut of your payments, and finding freelance clients on your own is the better move if possible. Online teaching or tutoring is another option, especially with the current rise in online learning.\nYou may also choose to sell unwanted clothes, furniture and electronics on platforms like Facebook Marketplace, Ebay and ThredUP. END
 TITLE: What Is Section 8 Housing? CONTENT: How Section 8 Housing Works\n---------------------------\nSection 8 is administered and subsidized by your local Public Housing Authority (PHA). If you succeed in obtaining a Section 8 voucher and securing a home that accepts it, your portion of the rent would be 30% of your monthly income. The government would then pick up the tab for the rest.\nThe discount can be substantial. Imagine the rent for an apartment is $1,800 and your monthly income is $1,500. Multiply your income by 30%. In this example that would equal $450, which is what you would pay for the rent. That's $1,350 in savings. (Keep in mind that the income portion of the application is complicated because it involves certain additions and subtractions, so determining that figure is not as straightforward as it seems.)\nYou can see why Section 8 is an attractive program. Rather than live in designated subsidized housing projects (which may be located in less than desirable neighborhoods), it gives you some choice. But be forewarned: Section 8 can be a challenge to get. Not all property owners and landlords accept Section 8 tenants or set units aside for the program. Also, the amount the landlord charges can't be higher than the fair market rent for the area, and there are limitations for what the PHA will pay.\nFor you, the paperwork and application process is extensive. The demand for this program is so high that there is usually a waiting list, and some of those lists are so long that they're closed to new applicants. So if you're looking for instant approval, modify those expectations and be patient. END
 TITLE: What Is Section 8 Housing? CONTENT: The Two Basic Types of Section 8 Housing\n----------------------------------------\nThere are two main types of Section 8 housing:\n*   **Tenant-Based.** This is the Housing Choice Voucher, and it's attached to you, the applicant. However long you are qualified for the subsidy, the Section 8 assistance remains yours. You are free to use the voucher at any property that meets the standards set forth by the PHA and accepts it. You can search for places as anyone else would (websites like Rent.com allow people to locate homes that are friendly to Section 8 applicants). Still, choices can range from limited to nonexistent, so you'll need to exercise patience and perseverance.\n*   **Project-Based.** The other type of Section 8 is called the Project-Based Voucher, and it's connected to a specific property. The PHA gives private property owners a fixed number of vouchers per year to reserve units for Section 8 tenants. If you move in and then leave, the subsidy remains with the property—it doesn't follow you to your next home. These places can fill up fast, so if they're all occupied, you'll have to wait for the current tenant to leave and for your number to be called. END
 TITLE: What Is Section 8 Housing? CONTENT: Requirements for Section 8 Housing\n----------------------------------\nYour first step is to determine whether you meet the criteria for the program. The PHA will assess four fundamental aspects of your life:\n1.  **Income.** In general, your income can't exceed 50% of the median income for the rental area you choose. Everything from earnings, child support and retirement funds to Social Security, welfare and disability benefits is included in the calculation.\n2.  **Family size and composition.** Many factors are considered, including the number of people in your household and whether or not there are minor children, disabled people or individuals over the age of 62 living with you.\n3.  **Citizenship.** As long as you're a U.S. citizen or have eligible immigrant status, you can qualify for Section 8. Documentation will be checked.\n4.  **Eviction history.** You will be denied Section 8 if you've been evicted from a property for a serious lease violation, such as criminal activity related to drugs. END
 TITLE: What Is Section 8 Housing? CONTENT: How Do I Apply?\n---------------\nTo begin the process of applying for Section 8, visit your local PHA. You can fill out and submit your application there.\nAfter the PHA reviews your paperwork, you'll either be accepted, rejected or placed on a waiting list. Unfortunately, it can take many months or even years to obtain a Section 8 voucher. In most cases you'll have to wait for your turn, though some PHAs use the lottery system. Ask what yours uses.\n### If You Qualify\nIf you do get the green light and receive Section 8, you're ready to locate qualified housing.\nWith a tenant-based voucher, you can look anywhere for a rental property, and as long as the landlord accepts it, you're in. Then the PHA will pay its percentage of the rent directly to the landlord—and you can celebrate!\nAs for project-based vouchers, after you're accepted, you'll have to wait for a Section 8 unit to be available. When your name is called, you're in. And again, you can toast to your new place.\n### If You Don't Qualify\nIf you don't qualify or you have to wait for what seems like an eternity, it can be frustrating. Where will you live when cash is tight and people are depending on you?\nYou may be able to rent an apartment without a credit check, but don't count on it. Instead, take action. Check your credit report to see where you stand. If there are any errors, correct them now. If there are dings, such as late payments, collection accounts or high debt as compared with your credit limits (known as your credit utilization ratio), rectify the damage if you can. You can't remove negative information before time is up—usually seven years—but lowering some balances or paying off collection debts will help your credit rating.\nOther tips for influencing a landlord to take you on as a tenant include:\n*   Finding a cosigner with good credit and a healthy income to guarantee the rent will be paid.\n*   Asking the landlord if they'll accept a slightly higher rent or security deposit.\n*   Paying a few months' rent with cash. Of course paying more may seem out of line when you're already struggling, but if you can cobble together the funds, it may be a possibility, especially if others are pitching in.\nFor many people, Section 8 housing is a great way to save money and live in a safe home in a decent neighborhood. If you do participate, take the opportunity to create a financially healthy place for you and your family. Build your credit scores by adding positive activity to your credit report. You can add your cell phone and utility payments with Experian Boost™† ™, and those consistent payments may increase your credit scores. Then if you ever need or want to shift away from the housing subsidy, you'll be in a good place to rent—or even buy—on the open market. END
 TITLE: Should I Use Home Equity for a Financial Emergency? CONTENT: How You Can Access Your Home's Equity\n-------------------------------------\nHome equity is the estimated market value of your home minus the balance remaining on your mortgage. So if the current market value of your home is $350,000 and you still owe $250,000 on the loan, you have $100,000 in equity ($350,000 - $250,000).\nYou build equity in two ways. First is by making your mortgage payments, which decreases your remaining loan balance month by month. The second way is when your home increases in value due to changing market forces. You may have bought your home 10 years ago when it was valued at $350,000, but today it would sell for $400,000. That additional $50,000 is added to your equity.\nOf course, that money isn't in your bank account—it's attached to the property until you take action. There are a number of ways to extract those funds. When a crisis hits, using one of these available methods to do so can spare you from disaster. END
 TITLE: Should I Use Home Equity for a Financial Emergency? CONTENT: How Using Home Equity Affects Your Credit\n-----------------------------------------\nBefore pursuing home equity options, check your credit report and scores. Lenders will refer to them to determine qualification and to set terms. You'll want to pursue only those credit products that are within reach and will be to your benefit.\nHome equity loans and cash-out refinance loans appear as installment loans on your credit reports. HELOCs are listed as a revolving line of credit, similar to a credit card. All of these credit types can enhance your credit rating if you manage them responsibly. Miss payments, however, and your credit rating can decline. Go into default or foreclosure, and your credit will suffer and you can lose your home.\nBecause you don't make payments on a reverse mortgage, most lenders don't report that loan to the credit reporting agencies. END
 TITLE: Should I Use Home Equity for a Financial Emergency? CONTENT: When Should You Tap Your Home's Equity?\n---------------------------------------\nUsing your home's equity is a serious decision. When you're doing it to cover an emergency, make sure it's for something that you truly need. Reasons might include:\n*   Uncovered medical or dental costs: If your medical insurance policy has a high deductible, you could be saddled with massive bills. Dental bills, too, can accumulate to an amount that's more than you can afford to pay with income or normal savings.\n*   Necessary home repairs: Termites, blown water heaters, faulty electrical work—these all can be very expensive and yet necessary to fix.\n*   Car repair or replacement: Tapping your home equity might cost more than it's worth for a car repair (a 0% APR credit card or personal loan may be a better option), but it could be worth considering depending on your situation.\n*   Legal expenses: Maybe you're in the middle of a drawn-out divorce, have been sued or are involved in a criminal investigation. Lawyers aren't cheap, so the equity in your home can come in handy.\n*   Big tax bill: Owing the IRS or the state can be pricey, since penalty fees and interest are added in. Paying off tax debt in one fell swoop can save you a substantial amount of money.\n*   High interest debt: Although not technically an emergency, when you're overwhelmed by debt and are paying high interest rates, using home equity could make sense—as long as you're not tempted to run up your cards again once they are paid off.\n*   Job loss: Unemployment is a possible reason you may want to reach into your home's equity. Just make sure you'll be back to work soon so you can make any necessary loan payments—otherwise you put your home in danger. END
 TITLE: Should I Use Home Equity for a Financial Emergency? CONTENT: When Should You Avoid Using Home Equity?\n----------------------------------------\nNot every uncomfortable financial scenario is an emergency. Here are some examples of when you should reconsider pursuing any of the home equity draining options:\n*   You can wait. Ask yourself if you can delay the purchase or the bill. If you can, save for what you need instead.\n*   The thing you want isn't that important. Vacations, cellphone upgrades, holiday gifts and the like are wonderful, but are not worth tapping your home's equity for.\n*   It puts your home at risk. It is crucial that you assess the feasibility of new payments. If you can't make them easily, and over the long term, stop.\n*   The fees are too high. If your credit scores are on the low side, a prohibitive interest rate or fees could do more harm than good. END
 TITLE: Should I Use Home Equity for a Financial Emergency? CONTENT: Other Ways to Find Cash in a Financial Emergency\n------------------------------------------------\nBefore turning to your home to finance a financial emergency, explore all alternatives. Review your budget carefully. If you can pare down your expenses to the most basic for a period of time that enables you to pay for the emergency expense, do it. It will prevent you from using your precious equity, which you may want to utilize later for another purpose or simply keep accumulating.\nAlso explore ways to increase your income. If you can earn enough money quickly, you won't have to borrow from your home or reduce an already trim budget. Look into getting a second or part-time job. Or maybe you have electronics, sports equipment, a second car or valuable jewelry that you can sell and use for the emergency expense.\nA credit card, too, can be preferable to tapping home equity. As long as you pay the debt off quickly, the financing fees shouldn't be too high. A $5,000 charge with a 19% APR (annual percentage rate) and payments of $670 will take you eight months to pay and cost $362 in interest. Even better is a new credit card with a promotional rate of 0% APR for six months or longer. If you pay it off within that time frame, it's a free loan.\nIf creditors are breathing down your neck and that's your financial emergency, take heart. Many issuers are willing to offer concessions to valued good cardholders, especially if they reach out before the payment's due date. Try to work out a hardship plan where you suspend payments for a few months instead. Trading unsecured credit card bills or collection accounts for a liability that is secured by your home could leave you without a place to live.\nIt's always a wise idea to carefully weigh whether you truly need something before you spend the money, but it's essential when considering using your home's equity. Don't take a hammer to this particular piggy bank unless you're sure it's worth the risk and costs. END
 TITLE: How to Budget for a Dream Summer Vacation CONTENT: Do: Stay Flexible on Dates and Locations\n----------------------------------------\nYou'll find the best prices, and perhaps explore destinations you wouldn't have considered, by planning travel based on sales. Sign up for services that do the work of finding flight deals for you, like the Scott's Cheap Flights newsletter, which notifies subscribers of sales on international flights from their home airports.\nGot a certain locale in mind? Search flights using services like Google Flights or Skyscanner, which show the cheapest days to fly throughout the month. Sign up for flight alerts on websites like Kayak and be ready to book when prices drop. END
 TITLE: How to Budget for a Dream Summer Vacation CONTENT: Don't: Reserve Hotels Too Far in Advance\n----------------------------------------\nWhen planning summer air travel, Scott's Cheap Flights recommends buying tickets two to five months in advance for domestic trips and three to 10 months in advance for international travel.\nBut hotels are a different story: Procrastination can pay off. You'll get the best deals on summer hotel prices if you book within a month of travel, according to an April 2018 TripAdvisor analysis. Reserving a hotel room a month beforehand can save you up to 40 percent in New York; even hotel rooms in Paris and London can be 25 percent cheaper if reserved up to five weeks prior, TripAdvisor says. END
 TITLE: How to Budget for a Dream Summer Vacation CONTENT: Do: Take Advantage of Credit Card Perks\n---------------------------------------\nCredit card rewards can lead to big travel savings, as long as you're able to pay off any purchases you make before you're hit with interest charges. When you use a travel rewards credit card before taking a trip, you can apply points earned to hotel or flight bookings. Plus, some cards offer other benefits if you use them to pay for travel, such as emergency travel assistance and trip cancellation insurance.\nBefore scheduling a trip, consider applying for a rewards credit card that comes with a big sign-up bonus and using those points to get even better deals on travel. You may have to spend $3,000 or $4,000 in the first three months you have the card, for instance, to get the bonus. Again, pay off those purchases by the end of the month, and know that opening new credit accounts affects your credit scores. END
 TITLE: How to Budget for a Dream Summer Vacation CONTENT: Don't: Take Out a Personal Loan\n-------------------------------\nA personal loan can be used for several different purposes, like consolidating debt or paying for a big one-time expense. You'll pay it back in fixed payments with an interest rate tied to your credit profile, and the rate can reach up to 36 percent. But if booking a trip requires you to take out a loan, you can't afford it—interest will make travel more expensive, and your payment will add an expense to a potentially already tight budget.\nInstead, assess how much of your cash savings you can safely put toward a vacation (while keeping your emergency fund intact), and opt for less extravagant trips if necessary. Even getting an Airbnb within driving distance, in a destination with free activities like hiking, could be enough to feel like a getaway. END
 TITLE: How to Budget for a Dream Summer Vacation CONTENT: Do: Save Up All Year\n--------------------\nA portion of your tax refund or work bonus can help fund summer travel, but to have an even bigger pot of cash to draw from, set up a savings account specifically for vacation. Send just $50 a month to it, and you'll have at least $600 to work with a year from now.\nSave more per month by choosing a few areas of your budget to trim—by doing at-home workouts instead of paying for a gym you don't go to, for instance—and creating an automatic transfer for that amount to your vacation fund. If you plan to travel with a friend or partner, motivate each other by setting a savings goal and celebrating when you hit milestones along the way. END
 TITLE: How to Budget for a Dream Summer Vacation CONTENT: Don't: Travel Without a Spending Plan\n-------------------------------------\nArranging to leave town may feel like a win in and of itself, but you still have to pay for food, entertainment, souvenirs and getting around once you're there.\nDon't let spending on vacation spin out of control, leaving you with a nasty surprise when you see your credit card bill or bank account balance. Set up a rough day-by-day spending plan, accounting for meals, drinks, gifts and transportation based on their average cost at your destination. Doing so before you even book travel will help you figure out how much to save in advance.\nWhen you arrive, consider taking out a certain amount of cash per day and limiting yourself only to that amount. The size of your allowance doesn't have to be incredibly restrictive, but it will be a reminder that if you're on a budget, being on vacation isn't a free-for-all. END
 TITLE: How to Budget for a Dream Summer Vacation CONTENT: The Bottom Line\n---------------\nPlanning on a budget, and keeping to one when you're on vacation, won't hinder your fun. It might even make you a more creative or communal traveler. Opt for free walking tours or lodging in a local's spare room via Airbnb, and you could meet travelers with similar interests as you—which is what getting away is all about. END
 TITLE: How to Manage All Your Monthly Subscriptions CONTENT: One Bill Turns Into Many\n------------------------\nNot too long ago, the content we consumed through our cable TV was paid for with one monthly bill in a neat and tidy package. Now, many of us have cheaper, more tailored streaming services such as Hulu, Netflix, Disney+ and Amazon Prime—with new options being added all the time.\nThey provide a compelling alternative: access to endless amounts of on-demand content, often with only a monthly commitment. But shows, networks and movie studios all have partnerships with different streaming services, so you've probably found yourself accumulating multiple streaming subscriptions just to watch stuff.\nYou may also subscribe to Spotify for music, Audible for books, DropBox or iCloud for storage, and so on. Subscription services that deliver you food or new products every month might also be thrown into the mix. And this is all in addition to your regular bills such as your gym membership, electricity bill and cellphone payment.\nAs you can see, the number of these recurring services and subscriptions can really add up, which could make it challenging to stay on top of. If you signed up for these services over time, subscriptions may be paid for by different credit and debit cards and further complicate your bill-paying process. They may even have different billing cycles, with some being paid quarterly or annually instead of month-by-month. If you're not keeping track, unexpected or infrequently billed subscriptions can bust your budget and even cause you to overdraft. END
 TITLE: How to Manage All Your Monthly Subscriptions CONTENT: Tips for Managing Subscriptions\n-------------------------------\nWith so many services being subscription-based these days, it's surprisingly easy to lose track of who you owe and how much you owe them. Doing the following should make it a little easier:\n*   **Use the same card to cover all your subscriptions.** Putting all your subscription services on the same card can make it easier to track them since they'll all be in one place. If you have a credit card you don't use often, this could be a handy one to use for these payments since it will be especially easy to see the charges. Or you could get a new card just for these expenses.\n*   **Sync your billing dates as much as possible.** Some subscription services allow you to adjust your billing date. If your budget can handle it, you may want to tweak your billing schedule so all of your monthly services are billed at the same time. On the other hand, if getting billed for them all at once is too hard on your budget, you could opt to spread them out over the course of a month.\n*   **Stay on top of free trials and cancel them when needed.** Some subscription services offer free trials that will convert to paid subscription once your trial is up. Whenever you sign up for a trial like this, put a reminder in your calendar for the end date so you'll be sure to cancel it before you're billed if you decide not to continue with it.\n*   **Pay attention to price increases.** Occasionally, subscription services bump up their prices. Businesses you subscribe will usually send an email to notify you, so be on the lookout. It's also wise to keep an eye on your monthly charges in case you're billed twice or your bill amount jumps without notice.\n*   **Regularly audit your subscriptions.** If you're looking to cut back, make a list of all the subscription services you have and assess if you still need them all. Maybe you originally subscribed to Hulu for \"The Handmaid's Tale,\" but didn't find much else you were interested in and stopped using the service. Or perhaps you entered a relationship and your new partner is willing to let you use their account. Go through your statements, list out any monthly or annual subscriptions you have, and cancel any you no longer need. END
 TITLE: How to Manage All Your Monthly Subscriptions CONTENT: Use Apps to Simplify Subscriptions\n----------------------------------\nIf you're feeling overwhelmed by the number of subscriptions you're paying for, several smartphone apps out there make it easier to get a handle on your digital subscriptions. Here are a few to consider:\n*   **Truebill**: Available for Apple and Android, this app helps you manage your subscriptions, but you can also use it for general budgeting and expense tracking. You connect Truebill to your financial accounts, and the app will show you your monthly subscriptions, how much they cost and when they're due. It also helps you to cancel any subscriptions you no longer want. Truebill's app is free, unless you decide to pay $3 to $12 a month for the premium service to access additional features. If you use their bill negotiation service, the app keeps 40% of what you'll save over a year.\n*   **Hiatus**: This app was created to help you track your money and make financial progress. Like Truebill, Hiatus links to your financial accounts and imports spending data. It then uses that information to give you a big-picture look at your balances and debts. The app also has a section that shows all your recurring subscriptions and can alert you about upcoming renewals, and it provides a link you can use to cancel unwanted subscriptions. Hiatus also offers a service to negotiate some of your bills to lower rates, but the app keeps 50% of your savings as their fee. The basic app is free, though there is a premium option for $10 per month that offers more financial management tools. Hiatus is exclusive to the Apple App Store.\n*   **Bobby**: This free iPhone app focuses solely on subscriptions and doesn't import your financial data; instead, you manually input all of your recurring subscriptions and Bobby helps you keep track of them. You'll be able to see all of your current subscriptions in one place along with their costs and bill dates—plus the total amount you're paying each month for all your subscriptions combined. You can also include other recurring bills like internet, rent and so on. Once you see all of your subscriptions listed out, you may realize there are some you can cancel. The basic app is free, though for a few extra bucks you can add on features such as being able to add an unlimited number of subscriptions. END
 TITLE: How to Manage All Your Monthly Subscriptions CONTENT: Keep Subscriptions on One Card\n------------------------------\nYou may find it easiest to manage monthly subscriptions by putting them all on one dedicated credit card. Some cards even provide additional rewards when you use them to pay for qualifying streaming subscriptions. If you're interested in a new credit card for this purpose, such as one that can earn you cash back, try Experian CreditMatch for free. You'll find out which cards you prequalify for without affecting your credit. END
 TITLE: How to Negotiate With Your Bank When Your Company’s Cash Is Tight CONTENT: How to Get Help From Your Bank for Your Business\n------------------------------------------------\nReaching out to your bank if you're anticipating (or experiencing) significant cash flow issues is always the best first step. In addition to helping relieve your cash needs, your banker may also be able to discuss the possibility of deferred payments, reduced fees, improved rates or additional services to help you through a tough time.\nYou don't need to contact your bank for every minor cash flow hiccup. But if your business is experiencing long-term challenges or if you are likely to miss loan payments, sooner is better for a frank conversation. Here are a few reasons why:\n*   **Acting early means avoiding pitfalls.** The best time to create a plan of action is before you deplete business funds, tap into personal assets, raid your retirement, miss payments or max out your available credit. If you plan to borrow money to get your business through a tough period, you are likely to get better terms when your assets and credit are intact—before a spike in credit utilization or late payments affect the business credit score you've been working hard to establish. In fact, acting strategically early may help you avoid these pitfalls entirely. If you're already past that point, don't worry—you're not the only business in a difficult situation. Read on.\n*   **You can learn about your options.** A new loan or a low-interest credit card offer could be just the infusion your business needs to weather a crisis. Although you may ultimately consider alternative sources of funding, understanding what your bank has to offer is a good start. It may also be the gateway to specific resources, as it has been during the COVID-19 crisis. In this case, many banks processing SBA loans have worked almost exclusively on applications from their existing customers.\n*   **You can optimize your banking relationship.** If your banking relationship consists of a basic checking account and a credit card, you may not think of your banker as a trusted financial advisor. But in an ideal world, they might be. This is your banker's opportunity to be more to your business. Can they offer competitive rates on merchant services? Are there discounts available to premium customers? Can your banker provide referrals, resources and advice? A good banking relationship is symbiotic: Your bank succeeds by helping you succeed. END
 TITLE: How to Negotiate With Your Bank When Your Company’s Cash Is Tight CONTENT: 7 Steps to a Better Negotiation With Your Bank\n----------------------------------------------\nIn a tightening economy—and faced with a cash crunch—you may wonder whether this is a good time to ask your bank for a loan or for any other consideration. While it may not be the best time, it could definitely be the right time. If you're a valued customer and you represent a good risk, you are ready to negotiate. Here are a tips for preparing to negotiate:\n1.  Know your business credit score. Your small business has its own credit score, based on factors that include the number of trade experiences you've had, outstanding balances, payment habits, credit utilization and business size. Getting a copy of your [business credit report](;WT.ti=small%20business%20credit%20score&WT.srch=1&bcd=ad_c_sem_7_&k_id=4db0a5eb-de35-4c9a-b8b3-6e074004e2c4&k_kw=small%20business%20credit%20score&k_mt=e&gclid=CjwKCAjwp-X0BRAFEiwAheRui7f_K6W2GAptIhWutibGGYPfg8x5TD098mDWSXo2b426wzb7_gv5LBoCVYkQAvD_BwE&link=5558) in advance will help you speak with authority about your creditworthiness and your business's ability to transcend your current challenges.\n2.  Get your story straight. Be ready to articulate—in a few sentences—what your situation is and how you would like your bank to help. You can, and will, provide additional details throughout your discussion, but having a quick summary ready will frame your conversation from the start.\n3.  Know your numbers. Review your finances so you can speak to overall growth and profitability in your business, the impact of recent events or trends, and how much money you need to position your company for success.\n4.  Bring ideas. Take a few moments to familiarize yourself with some of the options your bank might have to offer, including SBA loans, lines of credit and low rate credit card offers. Also review everything you're currently doing with your bank. Can your accounts be consolidated? Are all of your services necessary? Are discounts available based on the business you bring?\n5.  Be open. While you want to stand your ground in any negotiation, be prepared to compromise if the terms you're offered are acceptable and you think a better offer is unlikely. If your banker has an idea you didn't think of, hear them out.\n6.  Understand your alternatives. At the same time, don't agree to anything you don't understand fully. Ask questions. Get an outside opinion if you think it would be helpful. Remember you have other alternatives: contacting another bank, using personal funds, negotiating with vendors and creditors, crowdsourcing, and cutting expenses. Hopefully, your bank will beat these options. If not, you have a plan B.\n7.  Take your time. Any financial shortfall can feel like an emergency—especially when your business is at stake. Nevertheless, don't be afraid to take a moment at the end of your negotiation to think through what you'd like to do next. Will the proposed solution really solve your problems? Are you prepared to take on additional debt? Can you move forward with confidence? Find clarity before you proceed: The road ahead is long.\nBuilding an Alliance\n--------------------\nThink of your bank as your ally in maintaining the financial health of your business. When cash is tight, the idea of having a discussion with your banker may not be fun, but it may help you overcome temporary challenges, build a more productive banking relationship and set your business on the right track for recovery. END
 TITLE: How to Negotiate With Your Bank When Your Company’s Cash Is Tight CONTENT: Building an Alliance\n--------------------\nThink of your bank as your ally in maintaining the financial health of your business. When cash is tight, the idea of having a discussion with your banker may not be fun, but it may help you overcome temporary challenges, build a more productive banking relationship and set your business on the right track for recovery. END
 TITLE: What Is Discretionary Spending? CONTENT: What Makes Up a Budget?\n-----------------------\nA budget includes all of your monthly expenses, and it's a way of comparing how much money you spend with how much you make. Keeping a budget allows you to see whether you're spending more than you earn, and helps you take steps to change things if you are.\nWhen you make a budget, you can break your costs into two categories: necessary expenses and discretionary expenses.\n**Necessary expenses** include the non-negotiable costs you need to cover each month, such as:\n*   Rent or mortgage\n*   Utilities\n*   Groceries\n*   Car loan\n*   Commuting costs\n*   Insurance premiums\n*   Prescriptions\n*   Student loan payments\n*   Credit card payments\n*   Personal loan payments\n**Discretionary expenses**, on the other hand, are the nice-to-haves. You can think of discretionary expenses as quality-of-life purchases. They're purchases that are important to leading a satisfactory life, but that you could go without if push came to shove. Discretionary expenses include a broad range of costs and purchases, and the amount you spend in this category can vary greatly from month to month.\nHere are some common discretionary expenses that may appear in your budget:\n*   Restaurant meals, including dine-in and takeaway\n*   Meal kit subscriptions, such as Blue Apron or HelloFresh\n*   Gym memberships\n*   Personal grooming services, including hair and salon visits\n*   Luxury clothing and accessories\n*   Books, magazines and other media\n*   Music or TV\/movie streaming subscriptions, such as Netflix, Spotify, Pandora or Disney+\n*   Online movie rentals or movie theater tickets\n*   Concert tickets\n*   Subscription boxes, such as FabFitFun or BarkBox\n*   Travel costs, including airline tickets and hotel bookings\n*   Birthday gifts\n*   Holiday expenses, including gifts, baking supplies, cards, postage and the like\nWithout a budget that tracks your fixed and discretionary expenses, these costs can run together and cause you to lose sight of how your spending aligns with your income. If you spend too much on discretionary items and don't leave enough room for your necessary expenses, you could miss payments and risk harm to your credit, or worse.\nBut remember: Just because an expense is non-essential doesn't mean it's not important. For instance, your gym membership may be integral to your physical and mental health.\nA budget helps you see exactly what your finances look like, and it allows you to adjust your lifestyle expenses as needed to manage your money, build savings and avoid debt. END
 TITLE: What Is Discretionary Spending? CONTENT: Why You Should Track Discretionary Expenses\n-------------------------------------------\nIt's important to look over your discretionary expenses because getting clear on where your money goes provides a roadmap toward reaching your financial goals. They are also the lowest-hanging fruit when it comes to saving money if your financial situation changes, or you'd like to spend more elsewhere.\nWhen you list out your discretionary costs, think about how important they are to you and whether they add much to your life. You may find some superfluous expenses and consider eliminating them, but the goal in identifying and prioritizing your discretionary purchases isn't necessarily to minimize your \"fun\" spending. Rather, it's to make sure you're emphasizing what's most important to you.\nPerhaps you've been wanting to build up your emergency savings fund, but there never seems to be enough money left over at the end of the month. Making a list of your discretionary expenses may help you identify some ways to make these goals more attainable.\nMaybe you want to max out your retirement investment contributions this year or build up a down payment for a house. Once you're clear on those priorities, you can look at your budget to decide what you might want to give up in favor of a big picture dream.\nAnother reason budgeting is helpful is that it allows you to anticipate discretionary expenses coming up later in the year. If Mom's birthday is two months away, you can begin saving now for the great gift you have in mind. Or, if your friend is getting married next year, you can make a savings plan to set aside a bit of your income every month toward a gift and travel costs. Planning ahead for big discretionary expenses reduces the chances that you'll feel strapped for cash by trying to cover the costs all at once. END
 TITLE: What Is Discretionary Spending? CONTENT: Why Do You Need a Budget?\n-------------------------\nCreating a budget is a fundamental step toward building financial security and working toward your goals. Here's how a budget can help you:\n1.  Figure out if you're overspending. When you live outside your means, you can find yourself living paycheck to paycheck, which can be quite stressful. A budget helps you create savings and a financial buffer so you don't have to stress about having enough money.\n2.  Pay off debt. Listing out your monthly debt payments and discretionary expenses is a great way to motivate yourself. Eliminating just a few nonessentials can free up enough cash to make larger debt payments and clear your loan and credit card balances that much faster. Paying down debt can help you save money on interest and improve your credit score.\n3.  Save for the future. Whether you're building an emergency fund or saving for retirement, a budget gives you insight into your spending and income so you can come up with a workable savings plan. By putting money toward your goals each month, you can make steady, incremental progress.\nYou can structure your budget in whatever way works best for you. One popular method is the 50\/30\/20 rule, in which 50% of your income goes to necessary expenses, 30% goes to discretionary expenses and 20% gets allotted to savings.\nBut there are many ways to create and track a budget, and it's important to find one that works for you. Whatever budgeting method you choose, the key is sticking with it. Setting budget goals and assessing your spending at the end of the month can tell you how well you've done, and possibly motivate you to make changes the next month. END
 TITLE: What Is Discretionary Spending? CONTENT: Take Control of Your Finances\n-----------------------------\nUnderstanding the difference between your necessary and discretionary expenses helps you gain more control over your budget. Once you understand the costs you can cut, adjust or otherwise move around, you're able to do more to make sure you're spending efficiently. Whether that means cutting the gym membership you never use or deciding to spend less of your paycheck at restaurants, discretionary expenses are the first ones to examine when you want to save yourself some cash. END
 TITLE: How to Get a Small Loan CONTENT: What Is a Small Loan?\n---------------------\nNothing formally defines the amount of a small loan, but it's generally considered to be one that's $3,000 or less. Small loans tend to be personal loans used to cover emergencies, such as medical bills, fixing a vehicle, home repairs or covering necessary household expenses. In contrast, people may look for larger loans with a different type of purchase or purpose in mind, such as debt consolidation.\nBecause less money is on the line, it may be easier to qualify for and repay a small loan. You may, however, have fewer options and a harder time finding a small loan with favorable terms. This is because some financial institutions have decided it doesn't make financial sense for them to offer small loans—there's a similar amount of work required to process the loan request, but a lower return on their investment. END
 TITLE: How to Get a Small Loan CONTENT: Where Can I Get a Small Personal Loan?\n--------------------------------------\nWhile some lenders only issue larger loans, there are still many places you can turn to for a small personal loan:\n*   **Online lenders**: Many online-only lenders specialize in unsecured personal loans you can use for almost anything. Often, it's easy to see if you can prequalify for a loan. If you do, it may only take a few business days to complete the application and get the funds transferred to your bank.\n*   **Banks and credit unions**: Some traditional banks and credit unions also offer personal loans. Some institutions let you start the application online but require you to visit a physical branch before releasing the funds. Some credit unions also offer payday alternative loans (PALs), that may help you borrow a small amount of money even if you don't have good credit.\n*   **Peer-to-peer (P2P) lenders**: These online lending platforms match borrowers with investors willing to lend funds. They often offer low interest rates and a quick application process. Not all P2P platforms provide small loans; Upstart and LendingClub are two that do.\n*   **Friends and family**: Borrowing money from friends and family can strain relationships, but can be a good option if someone close to you has the means and the willingness to lend you some cash. Make sure you hash out an agreement that outlines how and when you'll repay the loan in advance.\n*   **Pawn and title loans**: If you have something of value or own a vehicle, you may be able to get a pawn loan or an auto title loan. But proceed with caution, as these loans tend to charge a high interest rate and may cause you to lose your property or vehicle if you can't repay the loan.\n*   **Payday loans**: Payday loans may be an option for very small loans ($500 or less), but high fees make them a costly choice. Only consider these loans as a last resort if you don't have access to credit elsewhere.\n*   **High-rate installment loans or lines of credit**: Some online and branch-based lenders offer installment loans or lines of credit with high interest rates (60% to 199%) or high fees. While these are cheaper than payday loans, they should also be a last resort as the high interest rate can make them difficult to repay.\nAs you compare your small loan options, you'll want to consider the lenders' requirements and terms. These can help you narrow down your options and figure out which loan type will be a good fit:\n*   **Borrowing fees**: Lenders may charge an origination fee, which could either be a fixed amount or a percentage of the borrowed amount. The fee may be taken out of your loan amount, which you'll want to consider when you make your loan request. A few lenders may also charge an application fee, but those aren't as common.\n*   **Loan limits**: Some lenders may be unwilling to issue a loan as small as the one you're seeking, which can cause you to overborrow. While you can often repay part or all of the loan early without paying a penalty, borrowing a larger loan than you need can result in paying an unnecessarily large origination fee.\n*   **Annual percentage rates**: The loan's annual percentage rate (APR) can help you understand how much you'll pay for the loan based on its fees and interest rates. Your interest rate may depend on the lender, your creditworthiness, the loan amount and the repayment terms. Some loans, such as payday loans, don't have an APR as they only charge a fee—not interest. However, you can search for a calculator to convert the fee amount to an equivalent APR to better compare loan options.\n*   **Secured and unsecured options**: Small loans may be either secured or unsecured. Secured loans can be easier to get, but you'll need to pledge collateral that the lender can take if you don't repay the loan. Unsecured loans may be less risky, but may be harder to get or have higher interest rates.\n*   **Repayment terms**: You may have several weeks to several years to repay your loan. Longer terms can be more manageable as you'll have lower payments, but you might wind up paying more interest overall. END
 TITLE: How to Get a Small Loan CONTENT: How to Apply for a Small Loan\n-----------------------------\nThe application process can vary depending on the lender, but the process is often similar whether you're trying to borrow $1,000 or $10,000.\nMany applications will ask you to share some basic information about yourself, including your name, address, date of birth, Social Security number, employment status and overall income. You may also need to verify your information and income by sharing copies of a government-issued ID and pay stubs or tax returns.\nMost personal loan lenders will want to check your credit history and credit scores and use them to determine your loan offer, along with the information you included on your application.\nOnce you get approved for a loan, you can still decide whether to accept or decline a loan offer. If you accept the offer, you may be given a check, cash or have the money transferred to your account in a matter of days. END
 TITLE: How to Get a Small Loan CONTENT: How to Get a Small Loan With Bad Credit\n---------------------------------------\nDepending on how bad your credit is, your options may be limited. Payday, pawn, title or high-interest installment loans or lines of credit might be the only loan types you can qualify for on your own, none of which are very appealing. These often either don't require a credit check or have a low credit score requirement, but tend to charge high fees and interest rates.\nWhen you're dealing with an emergency, a high-cost loan may still be the best option. If you can wait, you may want to focus on improving your credit and applying when you have a better chance of getting approved for a loan with better terms. If someone close to you is willing to help you out, they may be willing to lend you money or act as a loan cosigner, which can help you secure a loan with better terms. END
 TITLE: How to Get a Small Loan CONTENT: Small Loan Alternatives\n-----------------------\nIf you have good credit or better, a small personal loan may be the most cost-effective way to cover your expenses. But if you don't, loans might not be the best way to borrow and you might consider looking into other options.\nFor instance, credit card debt can be expensive to repay but may offer a lower interest rate than what you'll pay for a personal loan. Using your credit card also means you won't need to wait for the money to be disbursed or pay an origination fee.\nYou could also look into opening a new card that has a promotional 0% annual percentage rate (APR) offer on purchases, which may let you borrow money without paying any interest during the promotional period.\nOther options include:\n*   **Negotiating with creditors**: You could ask your creditors if they offer any hardship programs, which could temporarily lower or pause your payments. These can help you free up money to cover an emergency expense.\n*   **Help from nonprofits**: Look for local and national organizations or programs that could help you find resources or that offer direct assistance. You may be able to get help paying for necessities, such as utilities, rent, medical bills, medications and food.\n*   **Credit counseling**: Nonprofit credit counseling organizations can connect you with a trained counselor who can help review your finances and explain your options. If you're struggling with unsecured debt, such as credit card bills, the counselor may be able to negotiate with your creditors.\n*   **Get early access to your pay**: You may be able to get an advance on your next paycheck by asking your employer or using an early payday app. Some options limit how much you can receive, however, and it might not be enough to cover a large expense. It could be a good option if you need a small loan.\nIn the end, any method you can use to increase your income or decrease your expenses could help you get the money you'd otherwise receive from a small loan—while at the same time sparing you the expense of fees and interest. END
 TITLE: How to Get a Small Loan CONTENT: Compare Options Without Hurting Your Credit\n-------------------------------------------\nIf you're looking for a small loan or a new credit card with an introductory 0% APR promotion, you can compare offers from Experian's partners using Experian CreditMatch™ for personal loans and credit cards. You can filter results based on your preferences and needs, and you may be able to get prequalified for a loan with a soft credit inquiry—which won't hurt your credit. END
 TITLE: How Do Online Loans Work? CONTENT: What Is an Online Loan?\n-----------------------\nAn online loan can come from either an online-only lender or the online department of a more traditional lender. Often, these are unsecured personal loans, but you can get other types of loans online as well.\nAs with more traditional lenders, each online lending company has its own minimum eligibility and credit requirements. You can generally check to see if you prequalify for a loan with a soft credit inquiry that doesn't impact your credit scores.\nHowever, you may need to agree to a hard credit inquiry, which may hurt your scores a little, to complete an application. You'll also need to upload verification documents, such as a copy of a government-issued ID to prove your identity and pay stubs or tax returns to prove your income. If you accept a loan offer, you can have the money deposited directly into your bank account. END
 TITLE: How Do Online Loans Work? CONTENT: What Is the Difference Between an Online Loan and a Traditional Loan?\n---------------------------------------------------------------------\nToday, many traditional lenders also offer loans and loan servicing online. But there are still a few distinctions that could make online-only lenders more (or less) attractive based on your preferences.\n*   **No in-person contact**: The most obvious difference is that there's no way to interact with a customer service representative or banker in person when you work with an online-only lender. If you have questions or concerns, you'll have to address these online or over the phone. This may be a good or bad thing depending on your comfort level dealing with finances online and whether you live close to a bank branch.\n*   **Quick applications and reviews**: Online-only lenders may focus their resources on creating simple and automated systems that can help streamline the application and review process. And the lender may be able to use a program to quickly verify everything without having to get a person involved.\n*   **Targeted loans**: Many online lenders only offer one or two loan products, and they create these with a specific type of borrower in mind. You may be able to find an online lender that specializes in people who have poor credit and another that specializes in loans to those with excellent credit.\n*   **Potential savings**: Because online-only lenders don't need to build, maintain or staff branches, they may be able to offer lower rates on their loans. However, this isn't universally true, and you'll want to check rates from both online and traditional lenders before applying.\n*   **Less cross-selling**: One reason traditional lenders may offer loans with low rates is that they can make money by selling you other products or services later, such as a bank account or auto loan. When you work with an online-only lender, you might not have to deal with as many offers to sign up for other products.\nWhether you want to work with an online-only lender or a traditional lender, you can look up their minimum requirements, loan offerings, interest rate ranges and potential repayment terms to determine which lenders may be a good fit. END
 TITLE: How Do Online Loans Work? CONTENT: How Fast Can I Get an Online Loan?\n----------------------------------\nWhen an emergency strikes, you might not have a lot of time to compare lenders and wait for the funds to arrive. One advantage of working with online lenders is that you can quickly submit multiple prequalification applications to find the best rates and terms without hurting your credit.\nA few online lenders offer same-day funding once you're approved. But generally, it can take around one to five business days to get the money once your loan is approved. In part, the timing can depend on which bank you use. Some lenders may also take several days to review and approve your application, and the process can be delayed if you're delayed in uploading the required verification documents.\nTraditional banks and credit unions where you have an account may be able to get the money into your account the same day you're approved. They may, however, take longer to process and review loan applications, and some financial institutions don't offer personal loans at all. END
 TITLE: How Do Online Loans Work? CONTENT: Can I Get an Online Loan With Bad Credit?\n-----------------------------------------\nSome online lenders focus on lending to people who have bad credit or are new to credit. But even then, you may need a credit score in the mid-500s to low 600s, which could put you in the high end of the \"very poor\" to the \"fair\" credit score ranges.\nThe lower your score and income, the more difficult it may be to qualify for a loan. And, if you do get approved, you may receive a high interest rate (sometimes much higher than credit cards tend to charge) and low loan amount. Unless you need the money for an emergency, you may want to focus on improving your credit before taking out a loan. Check your credit score and credit report to see where your credit stands and where you can improve.\nYou could also look for less formal ways to get the money, such as a loan from a friend or family member or crowdfunding. Or, if you have a creditworthy close friend or relative, you could ask them to cosign a loan for you. END
 TITLE: How Do Online Loans Work? CONTENT: How Safe Are Online Loans?\n--------------------------\nThere are many reputable and trustworthy online-only lenders and traditional lenders that offer online loans. However, you also want to be cautious of scammers. Some signs of a scam include someone reaching out to you to offer you money and guaranteeing you'll be approved regardless of your credit or income.\nYou can look up companies by searching for third-party reviews and seeing if the business has a Better Business Bureau rating. The reviews and complaints can also give you insight into what it might be like to work with the lender. Even if a company is \"safe\" in the sense that you'll receive a loan, you don't want to be stuck paying back a loan to a company that has poor customer service.\nAdditionally, be cautious about taking out a loan that has an especially high interest rate, such as 60% to 200% APR. Although online lenders are allowed to offer term loans with these high rates in many states, and they (accurately) advertise they're cheaper than payday loans, these high-rate installment loans can still be costly and difficult to repay. END
 TITLE: How Do Online Loans Work? CONTENT: Check Your Personal Loan Offers Before Applying\n-----------------------------------------------\nIf you want to easily compare lenders and loan offers, you could start by using Experian CreditMatchTM. Based on your credit profile, Experian can match you with personal loan offers from its partners. You can also sort and filter the results depending on how much you want to borrow and your preferred repayment terms. END
 TITLE: 5 Ways to Get Some Emergency Cash CONTENT: 1\\. Emergency Loans\n-------------------\nAn emergency loan can come in the form of a personal loan, credit card cash advance or a payday loan. If you're considering one of these options, it's important to know how they work and what you can expect to pay. END
 TITLE: 5 Ways to Get Some Emergency Cash CONTENT: 2\\. Friends or Family Members\n-----------------------------\nIf you have trusted friends or family members, you may be able to get some assistance from them in your time of need. Of course, asking for money or a loan from loved ones can be a tough decision that shouldn't be taken lightly.\nIt's crucial to iron out repayment terms and any potential interest beforehand to improve your chances of agreement and to avoid conflict.\nBorrowing money in this way can be awkward and uncomfortable for both parties, especially if the borrower has a hard time with repayment. But it could be worth the discomfort to avoid making your financial situation worse with an expensive loan. END
 TITLE: 5 Ways to Get Some Emergency Cash CONTENT: 3\\. 0% APR Credit Cards\n-----------------------\nIf you have good or excellent credit, you may be able to qualify for a credit card that offers an introductory 0% APR promotion. Depending on the card, you could use it for emergency expenses and get anywhere from six to 20 months to pay it off interest-free.\nKeep in mind, though, that it may take a week or two to receive your card in the mail after you've been approved. If you need the money sooner, contact the card issuer before you apply to see if they can expedite delivery.\nSome card issuers, including American Express, may even offer to provide instant access to your credit card information, so you don't have to wait until you get the physical card in the mail.\nIf you qualify and have the time to wait to receive your card, a 0% APR credit card can be an excellent option because of its low costs. Just be sure to create a plan to pay off the debt before the promotional period ends. Otherwise, you'll owe a higher interest rate on the remaining balance. END
 TITLE: 5 Ways to Get Some Emergency Cash CONTENT: 4\\. Home Equity Line of Credit (HELOC)\n--------------------------------------\nA HELOC is a revolving line of credit that's secured by the equity you have in your home. If you already have one in place, accessing that credit line may be as simple as using the debit card tied to it or writing a check.\nHELOCs also typically offer interest rates in the single digits because they're secured by collateral. The downside is that if you don't already have one in place, a new HELOC can take several weeks to close, which may not be ideal for an emergency.\nAlso, some lenders may charge high closing costs, as well as annual fees. So be sure to shop around and compare these expenses before applying. Finally, one of the greatest risks of using a HELOC is that if you fail to pay back the debt, you could lose your home. Fortunately, they typically have long repayment terms, but it's still a risk to consider. END
 TITLE: 5 Ways to Get Some Emergency Cash CONTENT: 5\\. Look to Nonprofit Programs for Help\n---------------------------------------\nSome nonprofit organizations may be able to help you get the money you need. For example, organizations like Mission Asset Fund arrange lending circles with other people in your community.\nEach person takes a turn borrowing money from others in the circle and paying it back, and interest rates are generally low. Just keep in mind that joining a lending circle doesn't guarantee you'll be the first in line to receive cash, so it may not help with your immediate needs. But if you can make it work, it can be a low-cost alternative to bad-credit options.\nAlso, take some time to search community centers and other organizations in your area that may be able to provide some immediate relief with your bills. There are nonprofit organizations willing to help people cover utility bills, rent, food and other necessities while you address your immediate financial needs. END
 TITLE: 5 Ways to Get Some Emergency Cash CONTENT: How to Prepare for the Next Emergency\n-------------------------------------\nGetting your finances in order for the next emergency may not be high on your priority list right now. But once you've weathered the current storm, try to take some steps to prepare for the next one. Here are some actionable steps you can take when the time is right. END
 TITLE: 5 Ways to Get Some Emergency Cash CONTENT: Continue Monitoring Your Credit\n-------------------------------\nAs you work on preparing for future financial emergencies, including improving your credit score, continue to monitor your credit score to make sure you don't get any surprises. If you see your score dip, check your credit reports to see what may have caused it and look for ways to set things right.\nYour ongoing efforts can help you maintain a stable financial foundation that can protect you and your loved ones in the future. END
 TITLE: How to Choose Between a Personal Loan and a Credit Card CONTENT: What Is a Personal Loan?\n------------------------\nA personal loan allows you to borrow a set amount and repay it in roughly equal monthly payments over a predetermined period of time. Loans are a form of installment credit and are typically used to make a large purchase or to consolidate debt. Most personal loans have a fixed interest rate, which means your monthly payment amount won't change over the course of the loan due to rate fluctuations.\nSince loans have a preset repayment term of months or years, you know when it will be fully paid off. Your monthly payments go toward paying back the principal (the amount you borrowed) along with the interest. Loans also must be borrowed in set amounts, meaning you may end up with a loan that's larger than what you need—borrowing $2,000 to cover a $1,850 purchase, for instance.\nPersonal loans can be used for a variety of purposes, such as:\n*   Wedding\n*   Home repair or renovation\n*   Medical procedure\n*   Financial emergency\n*   Debt consolidation\nMost personal loans are unsecured, which means no collateral is required. This is in contrast to secured loans, such as an auto loan or mortgage loan, where the item you're financing is used as collateral. In other words, if you can't make payments on an auto loan or mortgage, you risk losing your car or house. Inability to repay an unsecured personal loan won't directly result in the loss of property, but it could have major consequences on your credit and land you in court. END
 TITLE: How to Choose Between a Personal Loan and a Credit Card CONTENT: How Do Credit Cards Work?\n-------------------------\nCredit cards are a type of revolving credit. Whereas installment loans let you borrow a set amount of money and repay it over a specific term, credit cards let you borrow up to a certain limit, repay it and reborrow repeatedly.\nYou only pay interest on what you borrow if you carry a balance to the next month. When you do carry a balance, credit card issuers require you to pay at least a minimum amount every month.\nSay you have a new credit card with a limit of $10,000. If you charge $2,000 on it for a car repair but pay off the balance before the end of your monthly billing cycle, you won't owe any interest. But if you can't pay it off in full, your remaining balance will carry to the next month and you'll owe interest when your statement comes due.\nBe aware that monthly minimum payments may seem manageable, but if you only ever pay the minimum, it can take a long time to get out of debt—especially if the interest rate is high. That's because unlike a personal loan, credit cards don't have a set term by when the full balance has to be repaid. This means the repayment process is more flexible than with loans, but takes discipline to fully pay off. END
 TITLE: How to Choose Between a Personal Loan and a Credit Card CONTENT: When Does It Make More Sense to Get a Personal Loan?\n----------------------------------------------------\nWhile personal loans don't offer much flexibility in terms of how much you can borrow, they can allow you to borrow more than you could with a credit card, making them optimal for major purchases. Plus, interest rates on personal loans are often lower than credit cards, especially if you have strong credit. However, those with not-so-great credit may still face high interest rates on loans.\nA personal loan could be best for you if:\n*   You need to finance a large purchase such as a wedding, surgery, home project or vacation.\n*   You have excellent credit and are able to qualify for a lower interest rate.\n*   You want predictable monthly payments.\n*   You'll be able to afford the loan's monthly payments over the entire term of the loan.\n*   You have a large amount of high-interest debt you need to consolidate (especially credit card debt). END
 TITLE: How to Choose Between a Personal Loan and a Credit Card CONTENT: When Does It Make More Sense to Get a Credit Card?\n--------------------------------------------------\nCredit cards are easy to use for small purchases and last-minute emergencies, like if you need some car urgent repairs but don't have enough cash to pay for them until your next paycheck. However, interest rates on credit cards are typically higher than those on personal loans, so carrying credit card debt can be expensive.\nA credit card might be a better option over a loan if:\n*   You want a way to finance smaller purchases or have a backup payment for emergencies.\n*   You know you can pay off your balance in full every month to avoid interest charges (or at least the majority of it to minimize interest payments).\n*   You can qualify for 0% APR promotional offers.\n*   You want to earn rewards for your spending (To maximize your rewards, use a rewards card to make purchases you'd have already made, then pay off your card balance before it accrues any interest). END
 TITLE: Step-By-Step Checklist to Getting a Personal Loan CONTENT: Get Ready to Apply for a Personal Loan\n--------------------------------------\n*   **Decide how much money you need.** Try not to borrow more than you need, since you'll be on the hook for the entire amount whether you use it all or not.\n*   **Check your credit score.** If your FICO® Score☉ is 670 or higher, you'll be able to choose from more lenders and get better loan terms and lower interest rates. If your credit score lower, take steps to improve it quickly:\n    *   Pay down credit card balances.\n    *   Pay any past-due amounts and make all payments on time going forward.\n    *   Don't apply for other new credit.\n    *   Sign up for Experian Boost™† for free to get credit for on-time telecom, utility and Netflix® payments.\n        If you can't improve your credit score quickly and need the loan fast, consider getting a cosigner (if the lender allows one).\n*   **Review your credit report.** Negative marks such as bankruptcy, collection accounts and late payments could make it harder to get a personal loan. If you believe any information on your credit report is incorrect, dispute it with the appropriate credit bureau. Even removing one incorrectly reported late payment could help your score.\n*   **Assess your DTI.** Your debt-to-income ratio (DTI) measures how much debt you're carrying relative to your income. The lower your DTI, the more attractive you are to lenders.\n    *   To calculate your DTI, divide your total recurring monthly debt (credit cards, mortgage, auto loan, student loan and so on) by your gross monthly income before taxes and withholding.\n    *   Lenders prefer a DTI of 36% or less, but may approve borrowers with higher ratios. If your DTI is too high, pay down some of your debt before applying for a personal loan.\n*   **Research personal loan interest rates.** The interest you'll pay on a personal loan is expressed as an APR (annual percentage rate) and includes fees and other costs. Lenders generally publish their current APRs as a range, such as 5.99% - 18.25%.\n*   **Estimate your monthly loan payments.** A personal loan calculator can help you calculate monthly payments as well as the total interest you'll pay over the life of a loan.\nPersonal Loan Calculator\n------------------------\n†The information provided is for educational purposes only and should not be construed as financial advice. Experian cannot guarantee the accuracy of the results provided. Your lender may charge other fees which have not been factored in this calculation. These results, based on the information provided by you, represent an estimate and you should consult your own financial advisor regarding your particular needs.\n*   **Decide what size loan payment you can afford.** Review your budget to see how much you can afford to pay each month.\n    *   You can reduce monthly payments by getting a longer-term loan, but you will pay more in interest over time.\n    *   You will save on interest by taking the shortest-term loan with payments you can afford. END
 TITLE: Step-By-Step Checklist to Getting a Personal Loan CONTENT: Decide Where to Apply for a Personal Loan\n-----------------------------------------\n*   **Shop around**. Every lender considers factors such as your income, credit score and credit history differently. Comparing multiple loan offers will help you get the best loan.\n*   **Start with your current bank.** As an existing customer, you may get better loan terms from your bank than you would elsewhere. You can also research personal loan offers from other banks.\n*   **Research credit unions.** Credit unions may offer more lenient loan terms than traditional bank lenders. However, you need to be a member of the credit union to apply for a loan, which usually involves opening a deposit account.\n*   **Research online lenders.** Online lenders can offer easier applications, faster approvals and more flexible qualification requirements. You can use Experian CreditMatch™ to compare loan offers from several online lenders.  \n    Here are some online lenders and marketplaces to consider:\n    *   Sofi: Loans from $5,000 to $100,000, good credit or better recommended\n    *   Marcus: Loans from $3,500 to $40,000, best for those with good credit\n    *   Payoff: Loans from $5,000 to $35,000, can only be used for credit card consolidation, good credit or better recommended\n    *   Upstart: Loans from $1,000 to $50,000, may not require credit history, fair credit considered\n    *   LendingClub: Loans from $1,000 to $40,000, good for debt consolidation, fair credit considered\n    *   LendingPoint: Loans from $2,000 to $25,000, fair credit considered\n    *   Avant: Loans from $2,000 to $35,000, fair credit considered\n*   **Compare loan terms from different lenders.** Get the following information for each lender:\n    *   Interest rate (APR) range\n    *   Estimated monthly payment amount\n    *   Loan terms available\n    *   Any restrictions on use of money\n    *   Fees and penalties\n    *   Discounts or special offers\n    *   How soon you can receive funds\n    *   Some lenders offer prequalification for personal loans. Once you're prequalified, you'll get more details about loans you qualify for.\n*   **Decide which lenders to apply to.** Based on your research, select several lenders that seem appealing. Applying for a loan can generate a hard inquiry on your credit report. Too many hard inquiries may lower your credit score, but hard inquiries for the same type of credit within a short time are generally considered one hard inquiry. END
 TITLE: Step-By-Step Checklist to Getting a Personal Loan CONTENT: Apply for a Personal Loan\n-------------------------\nIn most cases, you can apply for a personal loan online.\n*   **Be ready to provide basic identification information**:\n    *   Name\n    *   Birthdate\n    *   Address\n    *   Phone number\n    *   Email address\n    *   Social Security number\n*   **Also have the following information at hand**:\n    *   Desired loan amount, term and purpose. Some lenders charge an origination fee that may be rolled into your loan or taken out of your loan amount. Take this into account when requesting a loan.\n    *   Driver's license or other government-issued identification\n    *   Employer name and contact information\n    *   Gross monthly income and sources of income\n    *   Monthly rent\/mortgage payment\n    *   Total monthly debt payments\n*   **After you submit your application, the lender may want documentation such as**:\n    *   Recent pay stubs or W-2 forms\n    *   Most recent tax returns\n    *   Most recent bank statements\n    *   Proof of residence such as a utility bill\n    *   ID card\n    *   Social Security card\nReview Offers and Accept the Loan\n---------------------------------\n*   **Decide whether to accept or decline the offer.** If you're approved for multiple loans, compare terms to find the best one.\n*   **Accept the offer you want and get your money.**\n    *   You may receive a check, cash or direct deposit to your bank account.\n    *   For a debt consolidation loan, the lender may send the money directly to your creditors.\n*   **Make payments on your loan.**\n    *   Note your payment due date (usually within 30 days of loan approval).\n    *   Set up automatic payments and be sure your bank account always has enough money to cover the payment.\n    *   Build the payment into your budget.\n    *   Use the loan for its intended purpose.\n    *   If you got a debt consolidation loan, create a budget so you don't rack up new debt.\nKnow How a Personal Loan Affects Your Credit Score\n--------------------------------------------------\nMaking loan payments on time and in full until your loan is paid off can improve your credit score. However, missing a payment, paying late or defaulting on the loan can lower your credit score. Other ways a personal loan can affect your credit score:\n*   **Credit mix**: If you don't currently have an installment loan, a personal loan will increase the types of credit you manage and could improve your credit score.\n*   **Credit utilization**: Paying off credit card debt with a personal loan can lower your credit utilization ratio, which could improve your credit score.\n*   **Credit history**: If you're trying to build a credit history, don't pay the loan off early. Doing so will close the account on your credit report, which could lower your credit score.\nConsider monitoring your credit for free through Experian to see how your loan impacts your credit going forward. END
 TITLE: Step-By-Step Checklist to Getting a Personal Loan CONTENT: Review Offers and Accept the Loan\n---------------------------------\n*   **Decide whether to accept or decline the offer.** If you're approved for multiple loans, compare terms to find the best one.\n*   **Accept the offer you want and get your money.**\n    *   You may receive a check, cash or direct deposit to your bank account.\n    *   For a debt consolidation loan, the lender may send the money directly to your creditors.\n*   **Make payments on your loan.**\n    *   Note your payment due date (usually within 30 days of loan approval).\n    *   Set up automatic payments and be sure your bank account always has enough money to cover the payment.\n    *   Build the payment into your budget.\n    *   Use the loan for its intended purpose.\n    *   If you got a debt consolidation loan, create a budget so you don't rack up new debt. END
 TITLE: Step-By-Step Checklist to Getting a Personal Loan CONTENT: Know How a Personal Loan Affects Your Credit Score\n--------------------------------------------------\nMaking loan payments on time and in full until your loan is paid off can improve your credit score. However, missing a payment, paying late or defaulting on the loan can lower your credit score. Other ways a personal loan can affect your credit score:\n*   **Credit mix**: If you don't currently have an installment loan, a personal loan will increase the types of credit you manage and could improve your credit score.\n*   **Credit utilization**: Paying off credit card debt with a personal loan can lower your credit utilization ratio, which could improve your credit score.\n*   **Credit history**: If you're trying to build a credit history, don't pay the loan off early. Doing so will close the account on your credit report, which could lower your credit score.\nConsider monitoring your credit for free through Experian to see how your loan impacts your credit going forward. END
 TITLE: Should I Get a 0% APR Card or Personal Loan? CONTENT: How Does a Personal Loan Work?\n------------------------------\nA personal loan is an installment loan you borrow at a fixed amount and pay back in equal monthly payments. These loans are often used to help pay a large one-time expense, such as a surgery, home renovation, a wedding or a business expense. They can also be used to consolidate higher-interest debt.\nMost personal loans are unsecured, meaning the lender doesn't require collateral. This differentiates them from secured loans such as mortgages or auto loans, where the item you're purchasing serves as collateral and can be taken away if you can't pay.\nWith an unsecured personal loan, you receive the loan in a lump sum. You repay it over a defined term (usually in years), typically at a fixed interest rate, so the monthly payments are the same. Once it's paid off in full, it's done.\nWhile some traditional banks such as Chase and Bank of America no longer offer unsecured personal loans, some still do, such as Citi and Wells Fargo as well as many smaller banks and credit unions. Additionally, online-only lenders such as Prosper, Upgrade, LendingClub and LendingPoint have emerged in recent years offering personal loans that can be disbursed to your bank account more quickly than loans from traditional lenders. END
 TITLE: Should I Get a 0% APR Card or Personal Loan? CONTENT: How Does a 0% Intro APR Card Work?\n----------------------------------\nA credit card is a line of revolving credit, which works differently from an installment loan. While a personal loan is for a set amount and repaid over a predetermined time period, a credit card lets you borrow and pay interest only on what you use, and you can reborrow money from your credit line as you repay it. This lets you use it over and over again, which could be handy if you anticipate having recurring expenses.\nA 0% intro APR credit card can be a good way to avoid interest charges. No credit card has zero interest forever, but many offer a long introductory period during which the card's balance won't accrue interest charges. When you're shopping for a new credit card, keep in mind there are two types of 0% APR intro offers you'll see, with many cards offering both:\n*   **0% intro APR on purchases:** You can use a 0% intro APR period on purchases to buy things that you may need a little time to pay off. After the defined term—usually anywhere from 12 to 18 months—the card's standard APR kicks in and you'll begin owing interest on your existing balance and on any future purchases.\n*   **0% intro APR on balance transfers:** When a credit card has 0% intro APR on balance transfers, you can transfer high interest credit card debt to the card and chip away at it without accruing further interest during the no-interest period. This may help you get out of debt faster thanks to savings on interest charges—just make sure you can pay off the debt before the card's regular APR kicks in.\nBut keep in mind, whether you've transferred a balance or used a 0% intro APR card to make an emergency purchase, you are still required to make at least your monthly minimum payment. Beyond that, it's up to you how much you want to repay each month. While this offers more flexibility in your budget, be mindful that paying minimums only can trap you in debt. END
 TITLE: Should I Get a 0% APR Card or Personal Loan? CONTENT: When Should I Use a Personal Loan vs. a 0% Intro APR Card?\n----------------------------------------------------------\nHere are a few things to consider as you decide whether a personal loan or a 0% interest credit card makes the most sense for your financial situation:\n*   **How much money do you need?** Depending on your credit and other factors, you can find personal loans as large as $100,000, which is likely higher than the maximum credit card limit you may qualify for. If you need to make a large purchase, a loan may be best. And since the smallest loan many lenders will issue is $1,000, a credit card is probably the wiser bet for a smaller purchase or recurring expenses over a time. Also, keep in mind that carrying a credit card balance above 30% of its limit can hurt your credit scores, so even if you get a card with a high credit limit, carefully monitor your balance.\n*   **How's your credit?** Your creditworthiness helps determine if you'll get approved for a loan or credit card and what your terms will be. While those with excellent credit can more easily qualify for personal loans with low rates (under 7%) and cards that have lengthy 0% APR periods, options are more limited at the other end of the spectrum. The interest rate on a personal loan can be as high as 36% for someone with a lower credit score, and you'll be on the hook to pay the interest no matter what. If your credit scores are less than stellar, you consider borrowing with a credit card as you can avoid paying interest as you repay what you borrow within the card's grace period.\n*   **Is it a one-time purchase or an ongoing purchase?** A personal loan may be ideal for one large expense that you will then pay off over time—say, a new roof on your house or a surgery that isn't covered by insurance. If you need something for a smaller purchase or you want to be able to finance multiple purchases, a 0% intro APR credit card might make more sense.\n*   **How fast can you repay?** If you go with a 0% intro APR card and want to benefit from not paying any interest, you have to pay off your purchase before that introductory period ends. Can you really pay it off by then? If not, can you afford to pay interest on the remaining balance and pay more than just the minimum payment? If the answer is no, a personal loan could be better for you since payments are stretched out over a period of several years. END
 TITLE: Should I Get a 0% APR Card or Personal Loan? CONTENT: Lenders That Offer Personal Loans\n---------------------------------\nAs we mentioned, some traditional banks and credit unions offer personal loans, and typically allow applications to be submitted either online or in person. But if you're in need of fast cash and don't want to visit a physical branch, an online lender may be your best bet since they aim to approve and transfer funds in days. These lenders also may allow you to check your rate and the amount you can qualify for with a soft inquiry that doesn't affect your credit. Here are a few lenders to explore:\n### Upgrade\nApply\non Upgrade's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,095\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Affordable loans from $1,000 - $50,000 with low fixed rates that will never change, affordable monthly payments, and no prepayment penalties\n*   Quick online application -- get pre-approved in just minutes\n*   Checking your rate won't impact your credit score\n*   Review multiple loan options so you can pick the amount and term that fits your budget and timeline\n*   With automatic payments and a customizable due date, managing your account is easy and you'll be able to circle the date on your calendar when you'll be debt free\nDisclosure\nUpgrade offers fixed-rate personal loans online in a wider range than many lenders, with amounts from $1,000 to $50,000 available. Rates are based on creditworthiness and term length, and range from 5.94% to 35.97%.  \n### Prosper\nApply\non Prosper's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $2,000 to $40,000\nEst. monthly payment: $61 to $1,720\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   640 minimum FICO® Score\n*   More than $16 billion loans funded\n*   Consolidate debt, finance a home improvement project, or pay off medical expenses\n*   9 out of 10 customers would recommend Prosper to friends or family\\*\\*\n*   Co-borrower option available. Applying with a co-borrower could help improve your rates.\n*   Get your money in as few as 3 days - your monthly payment stays the same\nDisclosure\nThis online lender's fixed-rate personal loans are available in amounts of $2,000 to $40,000. Their interest rates range from 7.95% to 35.99% APR.  \n### LendingPoint\nApply\non LendingPoint's website\n**Recommended FICO® Score\\***\nFair - Good\nAmount\nAvailable loan amounts: $2,000 to $25,000\nEst. monthly payment: $95 to $1,437\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   Personal loans from $2,000 to $25,000\n*   Rates from 15.49% to 35.99% APR with no prepayment penalties\n*   Check your rate for free without impacting your credit score\n*   Qualified customers receive offers in three simple steps, and funds in as little as 24 hours if approved\n*   Simple and Secure - quick online application\n*   LendingPoint's customer success representatives are available online or by phone 24\/7, just call 888-969-0959\n*   Terms from 24 - 60 months\nDisclosure\nIf your credit is fair, you may struggle to get approved for personal loans. But this lender specializes in loans for those with credit scores as low as 585. Loans can be instantly approved—just be aware that interest rates start at 15.49% and go up to 35.99%.  \nKnow Your Credit Score\n----------------------\nYour credit score makes a huge difference in what financing options are available to you and which rates you can qualify for. Check your credit score for free on Experian today so you know where you stand. You can also use Experian's free tool, [CreditMatchTM](;br=cm&dAuth=true), to get credit card offers matched to your unique credit profile. CreditMatch can also connect you with personalized loan offers. END
 TITLE: Should I Get a 0% APR Card or Personal Loan? CONTENT: ### Upgrade\nApply\non Upgrade's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,095\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Affordable loans from $1,000 - $50,000 with low fixed rates that will never change, affordable monthly payments, and no prepayment penalties\n*   Quick online application -- get pre-approved in just minutes\n*   Checking your rate won't impact your credit score\n*   Review multiple loan options so you can pick the amount and term that fits your budget and timeline\n*   With automatic payments and a customizable due date, managing your account is easy and you'll be able to circle the date on your calendar when you'll be debt free\nDisclosure\nUpgrade offers fixed-rate personal loans online in a wider range than many lenders, with amounts from $1,000 to $50,000 available. Rates are based on creditworthiness and term length, and range from 5.94% to 35.97%. END
 TITLE: Should I Get a 0% APR Card or Personal Loan? CONTENT: ### Prosper\nApply\non Prosper's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $2,000 to $40,000\nEst. monthly payment: $61 to $1,720\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   640 minimum FICO® Score\n*   More than $16 billion loans funded\n*   Consolidate debt, finance a home improvement project, or pay off medical expenses\n*   9 out of 10 customers would recommend Prosper to friends or family\\*\\*\n*   Co-borrower option available. Applying with a co-borrower could help improve your rates.\n*   Get your money in as few as 3 days - your monthly payment stays the same\nDisclosure\nThis online lender's fixed-rate personal loans are available in amounts of $2,000 to $40,000. Their interest rates range from 7.95% to 35.99% APR. END
 TITLE: Should I Get a 0% APR Card or Personal Loan? CONTENT: ### LendingPoint\nApply\non LendingPoint's website\n**Recommended FICO® Score\\***\nFair - Good\nAmount\nAvailable loan amounts: $2,000 to $25,000\nEst. monthly payment: $95 to $1,437\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   Personal loans from $2,000 to $25,000\n*   Rates from 15.49% to 35.99% APR with no prepayment penalties\n*   Check your rate for free without impacting your credit score\n*   Qualified customers receive offers in three simple steps, and funds in as little as 24 hours if approved\n*   Simple and Secure - quick online application\n*   LendingPoint's customer success representatives are available online or by phone 24\/7, just call 888-969-0959\n*   Terms from 24 - 60 months\nDisclosure\nIf your credit is fair, you may struggle to get approved for personal loans. But this lender specializes in loans for those with credit scores as low as 585. Loans can be instantly approved—just be aware that interest rates start at 15.49% and go up to 35.99%. END
 TITLE: Should I Get a 0% APR Card or Personal Loan? CONTENT: Know Your Credit Score\n----------------------\nYour credit score makes a huge difference in what financing options are available to you and which rates you can qualify for. Check your credit score for free on Experian today so you know where you stand. You can also use Experian's free tool, [CreditMatchTM](;br=cm&dAuth=true), to get credit card offers matched to your unique credit profile. CreditMatch can also connect you with personalized loan offers. END
 TITLE: How Much Can I Borrow With a Personal Loan? CONTENT: What Is the General Range of Personal Loans?\n--------------------------------------------\nPersonal loans come in all sizes, with some lenders offering under $100 and others up to $100,000. This range doesn't determine how much you'll be approved for, though. And the amounts can depend on the type of personal loan you choose.\nMost small-dollar personal loans, for instance, are short-term loans from online and payday lenders. These loans are typically accessible to people across the credit spectrum, but they often charge exorbitant fees and interest rates and provide short repayment terms.\nIn contrast, many loans designed for people with better credit scores typically have higher minimum and maximum loan amounts. These loans also generally come with longer repayment terms, which can give you more breathing room with your repayment plan. END
 TITLE: How Much Can I Borrow With a Personal Loan? CONTENT: Which Factors Affect My Personal Loan Amount?\n---------------------------------------------\nEach lender has its own set of criteria for determining loan amounts. But in general, here are some of the primary factors:\n*   **Lender's loan offerings**: Even among lenders with similar loan terms and credit requirements, you may see a wide range of loan amounts. For example, SoFi offers loans ranging from $5,000 to $100,000, while Marcus loans go from $3,500 to $40,000. Both lenders offer loans to people with good to excellent credit scores.\n*   **Credit score**: Your credit score is an essential element in the loan underwriting process. The higher your credit score, the less of a risk you pose of defaulting on your loan. As a result, you may qualify for higher loan amounts if you have a good score than someone with a low credit score could. Many personal loan companies also have minimum credit score requirements.\n*   **Credit history**: In addition to your credit score, lenders will review your credit report for other factors that may indicate potential risk. If your credit score is decent but you have significant negative items on your credit report, such as missed loan payments or accounts in collections, it could hurt your chances of qualifying for a larger loan.\n*   **Income and debt**: Another factor lenders consider when you apply for a loan is your ability to repay it. To determine this, they'll look at your annual income—there's typically a minimum income requirement—as well as your debt payments. Lenders will calculate your debt-to-income ratio (DTI), or how much of your monthly gross income goes toward debt payments, to get an idea of your ability to make another monthly payment and how large a payment you could handle.\nBecause every lender is different in how it considers each of these factors, it's a good idea to shop around and compare multiple loan offers to improve your chances of scoring a better one. Experian CreditMatch™ allows you to get prequalified and compare loan offers from multiple lenders through one place based on your credit profile. END
 TITLE: How Much Can I Borrow With a Personal Loan? CONTENT: Consider the Monthly Payment You Can Afford\n-------------------------------------------\nJust because a lender determines that you can afford a certain loan amount based on your credit profile, income and debt, it doesn't mean you should take the maximum offered.\nUse a personal loan calculator to help you calculate a loan's payment based on the amount, interest rate and repayment term, as well as how much you'll pay over the life of the loan including interest charges.\nThen check your budget to decide whether you can afford the expense. Making loan payments can limit your ability to achieve other financial goals, so make sure you're prioritizing how you use and spend your money. END
 TITLE: How Much Can I Borrow With a Personal Loan? CONTENT: Try Improving Your Credit Before You Apply\n------------------------------------------\nIf your credit score is already in great shape, you may decide to move forward and apply for a loan. If your score isn't where you want it to be, though, think about whether it's worth it to wait and build your credit before you apply.\nDepending on how much you can increase your score, you could save hundreds or even thousands of dollars in interest.\nHere are some tips to help you improve your credit:\n*   Check your credit score to see where you stand.\n*   Get a copy of your credit report to determine which areas you need to address.\n*   Dispute inaccuracies on your credit report, if applicable.\n*   Get caught up on past-due payments.\n*   Pay down credit card balances.\n*   Avoid taking on new credit unnecessarily.\n*   Ask a family member with a strong credit history to add you as an authorized user on one of their credit card accounts.\n*   Use Experian Boost™† to get credit for your on-time phone, utility and Netflix® payments.\nThe process of building your credit can take time, but the long-term benefits can be well worth the effort and wait. END
 TITLE: Will Paying Off a Personal Loan Early Help My Credit? CONTENT: How Paying Off a Personal Loan Early Can Affect Your Credit\n-----------------------------------------------------------\nIf paying off your personal loan on time is good for your credit, shouldn't paying it off early be like extra credit? Unfortunately, it's not.\nPaying off your personal loan is also not like paying off your credit card—at least as far as your credit is concerned. If you monitor your credit regularly and have made a large payment to a credit card account, you may have seen your credit score take a nice little hop after the payment posted. That's because you reduced your credit utilization, or the amount of available credit you're using, on your established card account. Typically the lower your credit utilization, the better your credit scores.\nPaying off a personal loan is different. When you pay off an installment loan, your credit report shows the account as closed. When calculating your credit score, FICO weighs open accounts more heavily than closed accounts. Open accounts are considered a measure of how you're managing debt in the present as well as the past. Your successful payments on paid off loans are still part of your credit history, but they won't have the same impact on your score.\nWhen you added a personal loan to your credit history, you increased your number of active accounts and improved your credit mix with an installment loan. When you close the account, you will reverse the process: You will now have fewer open accounts and less account diversity. If you paid your loan off early, your history will reflect a shorter account relationship.\nThe same isn't true when you pay down your credit card. There, even if you pay your balance in full, the account remains open and your credit line stays intact. END
 TITLE: Will Paying Off a Personal Loan Early Help My Credit? CONTENT: 5 Questions to Ask Before You Pay Off Your Loan\n-----------------------------------------------\nIs it ever a good idea to pay off a personal loan early? It can be. Only you can weigh the value of saving on interest, reducing your monthly debt load and even taking a temporary, minor hit to your credit score in the interest of better financial health in the long term.\nIf you're considering an early payoff, ask yourself these five questions to better understand your situation and motives: END
 TITLE: Will Paying Off a Personal Loan Early Help My Credit? CONTENT: Does Getting a Personal Loan Help Your Credit?\n----------------------------------------------\nGetting a personal loan and making all your payments on time can boost your credit in a number of ways. A personal loan appears on your credit report as an installment loan—a type of loan that has a specific loan amount and a set repayment schedule. Installment loans are different from the revolving debt you may carry on credit cards. Adding an installment loan to your \"credit mix\" can improve your credit score because it shows that you can manage different types of debt.\nMaking monthly loan payments on time adds to your successful payment history—and that's significant. Your payment history accounts for 35% of your FICO credit score and is, in fact, the biggest factor in determining your score.\nBe aware that a new personal loan can put a momentary drag on your credit score. Lenders typically run what's called a hard inquiry on your credit when you apply for a loan. These can lower your score by a few points, though the effects are temporary. A new loan also reduces your average age of accounts. This problem starts to resolve itself as you pay the loan off over time, building your history as you go. Initially, however, new accounts make your credit look less \"mature.\" END
 TITLE: Is the Upgrade Card Better Than a Personal Loan? CONTENT: How the Upgrade Visa® Card with Cash Rewards Works\n--------------------------------------------------\nWhen you get approved for the Upgrade Visa® Card with Cash Rewards, you'll receive a card that you can use to make purchases, like you would with a debit or credit card. However, the Upgrade Visa® Card with Cash Rewards is an unsecured personal line of credit rather than a credit card.\nUnlike other lines of credit, however, the Upgrade Visa® Card with Cash Rewards bundles your transactions at the end of each billing period (approximately a month) and turns the sum into an installment loan with a fixed interest rate, monthly payment and repayment term. You'll then make one monthly payment to Upgrade, which will disperse the correct amount to each loan.\nYour Upgrade Visa® Card with Cash Rewards account will have a credit limit of $500 to $25,000. You can use your card to access the funds or take out a draw (the term for borrowing against a line of credit) by transferring money directly to your bank account.\nThe Upgrade Visa® Card with Cash Rewards is a closed line of credit but functions similarly to a revolving credit account, meaning you can take out multiple draws until your total balance reaches your borrowing limit.\nThe interest rate and repayment terms for the installment loans are determined when you open your account. If Upgrade changes them in the future, the change will only apply to new draws—your current loans' rates and terms are locked in.\nThe Upgrade Visa® Card with Cash Rewards also doesn't charge any fees: There are no application, origination, transfer, annual, prepayment or late payment fees. So using—or not using—your account won't cost anything extra.\nAs you pay off your purchase balance, you'll earn unlimited 1.5% cash back that's then applied to your next monthly balance. You'll still have to make your next payment on time as agreed, however, as you can't use rewards to fulfill or reduce a monthly payment. END
 TITLE: Is the Upgrade Card Better Than a Personal Loan? CONTENT: How a Traditional Personal Loan Works\n-------------------------------------\nA traditional personal loan is a type of unsecured installment loan. A lender can approve you based on your creditworthiness and offer you several options with different repayment terms, interest rates and loan amounts.\nOnce you accept a personal loan offer, the lender will send you the entire loan amount and you'll repay it over a set period. Often, personal loans have a fixed interest rate and monthly payment.\nUnlike a line of credit, you can't make multiple draws against your personal loan. If you want to borrow more than your original loan amount, you'll need to apply for a new loan.\nMany personal loan lenders charge an origination fee, which may be around 1% to 8% of the loan depending on the lender, loan amount and your credit. For example, Upgrade offers a personal loan in addition to the Upgrade Visa® Card with Cash Rewards, but its personal loan has 2.9% to 8% origination fee.\nLate payment fees are also common on personal loans. You might also be subject to a fee if you want to pay off your loan early, but many lenders don't charge a prepayment penalty. END
 TITLE: Is the Upgrade Card Better Than a Personal Loan? CONTENT: Should You Get the Upgrade Visa® Card with Cash Rewards?\n--------------------------------------------------------\nThe Upgrade Visa® Card with Cash Rewards could be a better option than a personal loan if you need to finance a series of purchases or aren't sure exactly how much money you'll need.\nFor example, if you're financing a home renovation project and plan to make payments as your work progresses, you don't necessarily want to borrow and pay interest on all the money upfront. Instead, using the Upgrade Visa® Card with Cash Rewards to borrow as you go could decrease your costs.\nBecause it doesn't charge any fees, the Upgrade Visa® Card with Cash Rewards could also offer savings compared with some personal loans or other lines of credit. However, figuring out which is best is going to depend on each lender's offer.\nUpgrade lets you apply for a prequalification with a soft inquiry, which won't impact your credit scores. You can then see your estimated rates, terms and credit limit or loan amount for the Upgrade Visa® Card with Cash Rewards and Upgrade personal loan. Upgrade will perform a hard inquiry when the card is issued if you accept the offer.\nCompare Upgrade's offers to prequalification offers from other personal loan lenders. To save time, you could use a tool like Experian CreditMatch™ to quickly compare options from multiple lenders.\nYou may find a personal loan is best if you can get approved for a loan without an origination fee or with a lower interest rate (through SoFi, for instance). Or, if you need a large loan, a personal loan may let you borrow more than your Upgrade Visa® Card with Cash Rewards's credit limit.\nIf you're comparing an Upgrade Visa® Card with Cash Rewards with a credit card, consider that the Upgrade Visa® Card with Cash Rewards charges daily interest on every transaction. A credit card would probably be better for making day-to-day purchases if you pay your bill in full each month, as you won't pay any interest. And while the Upgrade Visa® Card with Cash Rewards does offer a 1.5% cash back rate, many credit cards may offer better rewards on purchases, and have cardholder benefits the Upgrade Visa® Card with Cash Rewards lacks.\nA credit card can be the more expensive option if you plan on using it to make large purchases and paying them off over time. Unless the credit card has a promotional interest rate, the Upgrade Visa® Card with Cash Rewards is likely to offer a lower interest rate and fewer fees than a credit card. END
 TITLE: Is the Upgrade Card Better Than a Personal Loan? CONTENT: Compare Offers Before Choosing\n------------------------------\nThere are pros and cons to every financial product, and finding the best one depends on what you're financing and the offers you get from lenders. Shopping around and comparing several options before deciding on a loan, credit card or the Upgrade Visa® Card with Cash Rewards could help you save money.\nThe CreditMatch™ personal loan marketplace lets you compare basic loan details from Experian's partners, and filter options based on your desired loan amount, repayment terms and estimated credit score range. END
 TITLE: Best Personal Loans for Home Improvement CONTENT: Financing Your Home Improvement: Home Equity vs. Personal Loan\n--------------------------------------------------------------\nHome equity loans or lines of credit and personal loans are popular ways to finance a home improvement project.\n*   If you've built equity in your home, you may be able to take out a home equity loan or home equity line of credit (HELOC). These are second mortgages that use the home as collateral, which can make it easier to qualify for a large loan amount at a low rate. A cash-out refinance, which replaces your existing mortgage with a new, larger loan, is also an option. These loans may offer a long repayment term and low monthly payments.\n*   Alternatively, you could consider taking out an unsecured personal loan. With these loans, you don't have to risk your home by putting it up as collateral, and you may qualify even if you haven't built a lot of equity in the home. However, you may need good credit to qualify for a low rate or large loan amount, and the monthly payment could be high if there's a short repayment term.\nEquity and credit aside, the type of project you're taking on could also influence your decision.\nThe interest on a home equity loan, HELOC or cash-out refinance may be tax-deductible if you use the proceeds to substantially improve your home. For example, the interest may be deductible if you use the money to build a room addition, but it won't be if you're doing repairs that simply maintain your home's condition.\nThere are limits on how much interest you can deduct. And, even if your project qualifies, most homeowners don't benefit from the deduction because they use the standard deduction, and mortgage interest is an itemizable deduction. If you do itemize your deductions, keep this in mind as it can impact your overall cost. END
 TITLE: Best Personal Loans for Home Improvement CONTENT: Finding the Best Personal Loan\n------------------------------\nUsing a personal loan for a home improvement project could be the best option for some homeowners: An Experian survey found that 17% of personal loan borrowers used their loan this way.\nYou can get personal loans from a variety of lenders, including credit unions, banks and online lenders. With your project and personal finances in mind, you'll want to consider the lenders' ranges for loan amounts, interest rates, fees and repayment terms.\nHere are some of the best options from Experian's partners: END
 TITLE: Best Personal Loans for Home Improvement CONTENT: ### Avant\nApply\non Avant's website\n**Recommended FICO® Score\\***\nFair - Very Good\nAmount\nAvailable loan amounts: $2,000 to $35,000\nEst. monthly payment: $91 to $2,048\nGrace period: 10 days\nApplication fee: $0\n##### Loan Details\n*   Personal loans from $2,000 to $35,0001 entirely online\n*   Checking your loan options will not affect your credit score\n*   Funding as soon as next business day2\n*   No collateral needed and customer support available 7 days a week\nDisclosure\nIf you have fair to good credit (a score in the 600s could be high enough), look into a loan from Avant. This lender offers fixed-rate personal loans from $2,000 to $35,000 with repayment terms ranging from 24 to 60 months. When the loan is issued, Avant charges an administrative fee, similar to an origination fee, of up to 4.75% of the loan amount. There's no fee for prepayment (paying off the loan early). END
 TITLE: Best Personal Loans for Home Improvement CONTENT: ### LendingPoint\nApply\non LendingPoint's website\n**Recommended FICO® Score\\***\nFair - Good\nAmount\nAvailable loan amounts: $2,000 to $25,000\nEst. monthly payment: $95 to $1,437\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   Personal loans from $2,000 to $25,000\n*   Rates from 15.49% to 35.99% APR with no prepayment penalties\n*   Check your rate for free without impacting your credit score\n*   Qualified customers receive offers in three simple steps, and funds in as little as 24 hours if approved\n*   Simple and Secure - quick online application\n*   LendingPoint's customer success representatives are available online or by phone 24\/7, just call 888-969-0959\n*   Terms from 24 - 60 months\nDisclosure\nLendingPoint is another option for those who don't have great credit, including people with credit scores in the high 500s. You can borrow $2,000 to $25,000 with 24- to 60-month repayment terms. The origination fee can range from 0% to 6% depending on your creditworthiness and where you live, and there's no prepayment fee. END
 TITLE: Best Personal Loans for Home Improvement CONTENT: ### Prosper\nApply\non Prosper's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $2,000 to $40,000\nEst. monthly payment: $61 to $1,720\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   640 minimum FICO® Score\n*   More than $16 billion loans funded\n*   Consolidate debt, finance a home improvement project, or pay off medical expenses\n*   9 out of 10 customers would recommend Prosper to friends or family\\*\\*\n*   Co-borrower option available. Applying with a co-borrower could help improve your rates.\n*   Get your money in as few as 3 days - your monthly payment stays the same\nDisclosure\nBorrowers who have good credit (a score in the mid-600s or higher) may qualify to borrow $2,000 to $40,000 from Prosper. This peer-to-peer lending platform can connect you with fixed-rate personal loans with no prepayment fees and payment terms of either 36 or 60 months. There is an origination fee of 2.4% to 5% depending on your creditworthiness. END
 TITLE: Best Personal Loans for Home Improvement CONTENT: ### Upgrade\nApply\non Upgrade's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,095\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Affordable loans from $1,000 - $50,000 with low fixed rates that will never change, affordable monthly payments, and no prepayment penalties\n*   Quick online application -- get pre-approved in just minutes\n*   Checking your rate won't impact your credit score\n*   Review multiple loan options so you can pick the amount and term that fits your budget and timeline\n*   With automatic payments and a customizable due date, managing your account is easy and you'll be able to circle the date on your calendar when you'll be debt free\nDisclosure\nAnother option for borrowers with good credit, Upgrade offers $1,000 to $50,000 fixed-rate personal loans with either a 36- or 60-month term. There is no prepayment fee, but Upgrade's origination fee ranges from 2.9% to 8%. The potentially high fee could make it an expensive option for some borrowers. Upgrade also offers the Upgrade Visa® Card with Cash Rewards, which is essentially a line of credit that charges no fees and could be a better option for some. END
 TITLE: Best Personal Loans for Home Improvement CONTENT: ### SoFi\nApply\non SoFi's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $5,000 to $100,000\nEst. monthly payment: $217 to $4,944\nGrace period: 10 days\nApplication fee: $0\n##### Loan Details\n*   Personal Loans with low fixed rates\n*   Borrow up to $100,000\n*   No Origination Fees, No Prepayment Penalties, and No Late or Overdraft Fees\n*   Simple online application with live support 7 days a week\n*   Apply Now\nDisclosure\nYou may need good to excellent credit to qualify, but SoFi is one of the few online lenders that doesn't charge any origination, late or prepayment fees on its personal loans. You can borrow $5,000 to $100,000 with either a fixed or variable rate, and choose from repayment terms of 24 to 84 months. END
 TITLE: Best Personal Loans for Home Improvement CONTENT: Get Matched With a Loan\n-----------------------\nMost online personal loan lenders let you check your estimated loan amount and terms with a soft credit pull—the type that doesn't hurt your credit. When you do, compare different offers' annual percentage rate (APR), which takes the loan's interest rate, repayment terms and fees into account.\nYou can also use Experian CreditMatchTM to quickly get matched with loan offers from Experian's partners, including the lenders above. Your matches may vary depending on the lenders' requirements and offers, such as which state you live in and how much you want to borrow. END
 TITLE: Can a Personal Loan Help My Credit Score? CONTENT: Ways a Personal Loan Can Help Improve Credit\n--------------------------------------------\nPersonal loans are among the most versatile forms of credit because you can use them for just about anything. And if your personal loan payments are reported to the three national credit bureaus (Experian, TransUnion and Equifax), the positive payment history associated with the loan will help you build credit. It's possible, however, that taking out a personal loan might do more harm than good—especially if you can't afford it.\nYour FICO® Score☉ uses five factors to determine the health of your credit. Here are the three factors that can be impacted positively by a personal loan:\n*   **Payment history**: Your payment history is the most important indicator of responsible credit use and makes up 35% of your FICO® Score. As you make on-time payments on your personal loan, you'll be building a positive payment history and potentially improving your credit score.\n*   **Amounts owed**: Using a personal loan to consolidate credit card debt can significantly improve your credit if it helps you reduce your credit utilization ratio. You can calculate your credit utilization by dividing your credit card balances by their credit limits. For example, a $1,000 balance on a card with a $2,000 limit has a 50% utilization rate. By paying off the card with a personal loan, you reduce that percentage to 0%, which can help increase your credit score. The amount of installment debt you have still affects your scores, but not nearly to the extent that a high credit utilization ratio does.\n*   **Credit mix**: Your credit score also considers how well you manage different types of credit. For example, someone who has credit cards, student loans, an auto loan and a mortgage loan may be viewed more highly by lenders than someone who has only ever had credit cards, even if they've both used their credit responsibly. Adding a personal loan to your credit file can bolster your credit mix and help your credit score. END
 TITLE: Can a Personal Loan Help My Credit Score? CONTENT: Ways a Personal Loan Could Hurt Your Credit\n-------------------------------------------\nWhile there are some clear benefits of using a personal loan to build credit, there are some potential pitfalls to watch out for:\n*   **Missed payments**: Taking on debt you can't afford to pay back could cause significant damage to your credit score. Consider applying for a personal loan only if you're confident you'll have the means to make your monthly payments on time for the duration of the loan's repayment period.\n*   **Credit inquiry**: When you apply for a personal loan, the lender will typically run a hard inquiry on your credit report. Each inquiry typically takes a few points off your credit score. But if you've applied for multiple credit accounts in a short period, it could compound that impact and make it harder for you to get credit in the future.\n*   **Length of credit history**: Every time you open a new loan, it reduces your average age of accounts, which can decrease your credit score slightly. For example, if you've had a credit card for 10 years and an auto loan for three years, your average age of accounts is 6.5 years. Add a brand-new personal loan, and that average goes down to 4.33 years. The length of your credit history, which also considers your oldest credit accounts and the last time you used credit, makes up 15% of your FICO® Score.\nIt's also important to consider that personal loans cost money in the form of interest and other fees. If you're consolidating credit card debt, you may be able to get a lower interest rate than what you're paying now and save money that way.\nBut if you're applying for a personal loan solely to build credit, consider the interest charges and whether there's a better (and cheaper) way to build credit, such as by using a credit card and paying it off in full every month before you accrue interest.\nAlso, if you use a personal loan to consolidate credit card debt, make sure you don't rack up another balance on your credit cards. Doing so may put you even deeper in debt, which can damage your overall financial well-being, and risks damaging your credit. END
 TITLE: Can a Personal Loan Help My Credit Score? CONTENT: What Credit Score Do You Need to Get a Personal Loan?\n-----------------------------------------------------\nYou can qualify for a personal loan with just about any credit score. But it's important to keep in mind that a better credit score will give you access to a broader range of lenders and lower interest rates.\nFor example, there are lenders that specialize in working with people with bad credit, but you may end up paying triple-digit interest rates with some of them, which may not be worth it.\nIt's also important to keep in mind that lenders look at more than just your credit score to determine your eligibility and loan terms. Other factors that lender consider include:\n*   Job stability\n*   Income\n*   Other debt payments\n*   Negative items on your credit report\n*   Whether you have a cosigner\nIn some instances, lenders may require collateral in the form of savings before they'll approve you for a loan. While this can help you qualify for a lower interest rate because it reduces the lender's risk, it can be challenging if you're short on cash.\nIf your need for a personal loan isn't immediate, it may be a good idea to work on improving your credit before you apply. This can include paying down credit card balances, getting caught up on past-due payments, paying upcoming bills on time and avoiding new credit unless it's necessary. END
 TITLE: Can a Personal Loan Help My Credit Score? CONTENT: How to Get a Personal Loan\n--------------------------\nYou can get a personal loan from a variety of sources, including traditional banks, credit unions and online lenders. If you have stellar credit, you'll have more options and it can be easy to get approved for a personal loan.\nIf your credit isn't in great shape, though, your options may be limited and you may have difficulty getting approved with favorable terms.\nAs such, it's crucial that you take the time to shop around and compare personal loans from several lenders before you apply. Many of these lenders allow you to get prequalified with a soft credit check, which won't impact your credit score. This process allows you to view and compare loan offers, including interest rates, repayment terms and more.\nTake your time with your research, and you'll have a better chance of getting the right loan with the best terms available for you. END
 TITLE: Can a Personal Loan Help My Credit Score? CONTENT: Monitor Your Credit Regularly to Maintain Good Credit\n-----------------------------------------------------\nBefore and after you apply for a personal loan, it's essential to monitor your credit. Doing so will not only help you understand which areas of your credit history that you need to address, but will also give you the chance to spot potential new issues and fix them before they damage your credit score.\nExperian's credit monitoring tool provides free access to your FICO® Score, plus an updated Experian credit report every 30 days. You'll also get real-time alerts whenever a new inquiry or credit account gets added to your Experian credit report, so you can report potential fraud as it happens.\nAs you focus on building and maintaining an excellent credit history, you'll be in a much better position to qualify for affordable credit in the future when you need it. END
 TITLE: How to Get the Best Personal Loan for You CONTENT: Factors to Consider When Choosing a Personal Loan\n-------------------------------------------------\nWhen shopping for a personal loan, you'll need to consider five main factors:\n1.  Interest rates: The lower, the better.\n2.  Fees: Origination fees either become part of your loan balance or add to your upfront costs; again, less is more.\n3.  Loan term: A longer loan term will reduce your monthly payments; a shorter term means getting out of debt sooner and paying less over the life of the loan.\n4.  Loan amount: Personal loans in the range of $1,000 to $10,000 are typical, but some lenders offer up to $40,000 or more.\n5.  Features: These can range from good (incentives for paying on time) to limiting (prepayment penalties or restrictions on use). Read the details carefully.\nSo far, your choice is straightforward: The best loan for you has the lowest rate and fees, and a loan amount, term and features that best suit your purposes. But there's a sixth factor to consider: availability. The options available to you will depend most heavily on your creditworthiness. Your credit status, as well as income and assets in many cases, will determine which lenders—and individual loan programs—are likely to be a good match for you.\nWhy is credit so influential in the personal loan process? Although a few types of personal loans allow you to use collateral to help secure your loan, most are unsecured. If you default on an unsecured personal loan, there is no home or vehicle to repossess. The lender is relying on your credit history and proven ability to repay debt to assess the risk involved in giving you a loan. The lower your credit score, the higher the perceived risk. In turn, higher risk translates to higher rates and fees as a hedge against the possibility that you won't repay. END
 TITLE: How to Get the Best Personal Loan for You CONTENT: Know Your Credit Before Applying for a Personal Loan\n----------------------------------------------------\nMany lenders use FICO® Scores☉ to rate borrower creditworthiness. Here is how FICO® rates creditworthiness by credit score band:\n*   800-850: Exceptional\n*   740-799: Very good\n*   670-739: Good\n*   580-669: Fair\n*   300-579: Very poor\nMany online lenders focus on a specific segment of borrowers. If you have exceptional credit—a FICO® Score of 800 or higher—you may qualify for a low-interest loan through an online lender such as SoFi, which caters to top-tier borrowers.\nIf your credit is good to very good, you'll find a range of lenders and lending platforms, including Marcus and Best Egg, that may want to work with you—although you'll pay higher interest rates and are more likely to pay upfront origination fees to get your loan started. Even borrowers with poor to fair credit have options, though these loans are typically the most expensive. Still, finding a reputable lender or loan product that caters to borrowers with lower credit scores, such as Avant, OneMain Financial or RISE, is always a better option than resorting to a payday loan.\nBefore you begin looking for a personal loan, find out where your credit stands by downloading a copy of your credit score and credit report. Checking your own credit won't impact your credit score, so it's a good practice to do this periodically even if you're not shopping for a loan.\nContact lenders individually to get a rate and terms based on your credit score and other qualifying factors. You can find online lenders that fit your credit profile doing research online or by using a service such as Experian's CreditMatch™. Compare as many offers as you can, since rates and terms can vary widely. In addition to online lenders, check with your bank or credit union to see if they offer personal loans. The more information you gather, the more informed your decision will be. END
 TITLE: How to Get the Best Personal Loan for You CONTENT: What to Do if Your Credit Needs a Boost\n---------------------------------------\nAnyone can raise their credit score if they have enough time. But since time may be in short supply, here are a few steps you can take if your credit needs a boost to help you qualify for a more attractive loan now. While it's unlikely you can parlay a \"fair\" score into an \"exceptional\" one in short order, you might be able to add enough critical points to nudge you into a better loan.\n1.  Study your credit report. Disputing an inaccuracy on your credit report, such as a misreported late payment, might raise your score. Also check for any negative items that are about to \"fall off\" your report. For example, an auto repossession stays on your credit report for seven years after your original delinquency date. If you're a month shy of that seven-year mark, you might consider holding off until that item is cleared and your scores recover.\n2.  Do some basic housekeeping. Depending on your circumstances, paying down debt or paying off some of your cards may improve your credit score. Read up on more quick tips for raising your credit score.\n3.  Get a cosigner. Asking a friend or family member to cosign a loan is serious business. If you default, they are on the hook for your outstanding debt. But adding a creditworthy cosigner can give your application a lift.\n4.  Try Experian Boost™† . By factoring your on-time phone and utility payments into your FICO® Score, you could see a significant score increase.\n5.  Find a lender that uses alternative data. Some lenders use different criteria to make a loan decision, including Upstart. A lender will still want to see evidence that you have the income and assets to repay your loan—and they'll offer a rate and terms based on this assessment. END
 TITLE: How to Get the Best Personal Loan for You CONTENT: Getting the best personal loan is indeed a personal process. Your rate, terms and fees will be tailored to your credit profile as well as your needs. Be prepared to roll up your sleeves, do plenty of calculations and compare your options wisely. The best loan for you will provide more than the means to pay down debt or make a purchase. You'll also see savings and benefits that promote your overall financial health. END
 TITLE: Where Can I Get a Small Loan With Bad Credit? CONTENT: Where Can You Apply For a Small Loan?\n-------------------------------------\nYou may be able to find small personal loans from a variety of financial institutions, including banks, credit unions, online lenders and peer-to-peer lenders. While lenders often have minimum loan amounts for their personal loans, loan limits may start around $500 to $3,000, which could squarely fit into the \"small loan\" category.\nThere are also subprime lenders that may offer small loans without any credit check, including pawn, auto title and payday loans. While bad credit won't hold you back from these loans, the exorbitant fees and interest rates they typically charge make them choices to avoid if at all possible.\nGenerally, you can find the minimum loan amount, along with lenders' interest rate ranges and repayment terms, on the lenders' websites or by asking a company representative. END
 TITLE: Where Can I Get a Small Loan With Bad Credit? CONTENT: How Does Bad Credit Affect Lending Decisions?\n---------------------------------------------\nLower credit scores correspond with a higher statistical likelihood that a person will miss a payment in the future. To account for the risk of lending to someone who might not repay their loan, lenders may charge higher origination fees and interest rates. They may also have a minimum credit score requirement, and you could be denied outright if your score doesn't make the cutoff.\nCredit scores generally range from 300 to 850, and a score in the mid-600s or lower may be considered a bad credit score. Once your score is around 670 or higher, you could find yourself in the \"good\" score range.\nLenders often consider more than your credit score on its own when reviewing a loan application, however. Other factors they may look for include your income, outstanding debt and history with the lender. In general, the worse your credit, the better your other qualifications may need to be to qualify for a loan or low interest rate. END
 TITLE: Where Can I Get a Small Loan With Bad Credit? CONTENT: Tips for Getting a Small Loan When You Have Bad Credit\n------------------------------------------------------\nWhile it can be more difficult to qualify a loan when you have bad credit, there are ways to increase your chances of getting approved and receiving a good rate.\n*   **Check your credit.** Before shopping for a loan, check your credit to see where you stand. Experian offers a free credit score and can help you understand which factors are impacting your score.\n*   **Look for lenders that cater to applicants with bad credit.** Some lenders, not including the no-credit-check options, focus on lending money to people who don't have good or excellent credit. There are even online lenders, such as Upstart, that may use alternative data to review applications and place less importance on their scores, although it typically still requires a credit score of at least 580.\n*   **Get a cosigner.** If you have a creditworthy friend or relative who is willing to cosign the loan, that could increase your chances of getting approved and receiving a low rate. However, if you miss a payment, their credit could be hurt and the lender may try to collect the debt from your cosigner. END
 TITLE: Where Can I Get a Small Loan With Bad Credit? CONTENT: Alternatives to Small Loans If You Have Bad Credit\n--------------------------------------------------\nIf you can't get approved for a small loan with favorable terms, you can look for other ways to get an emergency loan, get help with your bills or decrease your expenses. Even a combination of several options may help you make ends meet.\n*   **Ask creditors for help.** Contact your current creditors to see if there are any relief options available. You may be able to temporarily lower or skip payments, freeing up money that you would otherwise have to borrow. However, this only helps if you're dealing with a temporary shortfall.\n*   **Borrow from friends or family.** While borrowing money from friends or family members has the potential to strain or break relationships, in some cases, it may be a good idea if you're confident you can pay back the loan. Consider writing up a contract for the loan with clear terms that you both agree on.\n*   **Get an advance on your paycheck.** Although payday loans can be expensive, some employers and early payday apps will give you an advance on your paycheck for a small—or no—fee.\n*   **Find help from a nonprofit.** Local and national nonprofits may offer different types of assistance that could directly address your financial need or help alleviate other expenses. You may be able to get help with the basics, including utility bills, medical bills, rent and food.\nWhile these can all help with short-term setbacks, they might not be a sustainable solution if you find yourself repeatedly seeking small loans. When that's the case, you may need to revise your budget and find ways to cut expenses, or figure out how to increase your income. END
 TITLE: Where Can I Get a Small Loan With Bad Credit? CONTENT: How to Improve Your Credit\n--------------------------\nIf you can wait to borrow money, you could first focus on rebuilding your credit to increase the chances of getting approved for a loan with a low rate. While you can't erase negative marks that are part of your credit history, there are a few steps you can take to improve your credit:\n*   **Pay down credit card debt.** While rebuilding credit can take time, one of the few things you can do that could quickly improve your credit scores is to pay down credit card debt. The ratio of a card's balance to its credit limit—also known as its utilization rate—is an important scoring factor. A lower utilization rate is better for your credit scores.\n*   **Make future payments on time.** Having a history of on-time payments is one of the most important scoring factors. If you have trouble affording all your bills, a hardship option from a creditor may allow you to skip a payment without hurting your credit.\n*   **Add alternative data to your credit reports.** Utility and cellphone bills generally don't appear on credit reports, but they can help your credit scores when they do. You can sign up for Experian Boost™† and get credit for your on-time phone and utility bill payments.\nAlso, be mindful of how many applications you submit while trying to get a small loan. Each application could result in a hard inquiry, which can hurt your credit a little and remain on your credit report for two years. Some lenders offer a prequalification that will let you know if you're likely to get a loan and only requires a soft inquiry, which doesn't impact your credit. END
 TITLE: Where Can I Get a Small Loan With Bad Credit? CONTENT: Check Your Credit and Offers Before Applying\n--------------------------------------------\nIn addition to offering free credit reports and scores, Experian has a CreditMatch™ personal loan marketplace that provides information on partner lenders and loan offers. You can view the results based on your credit, desired loan amount and terms, and get prequalified without hurting your credit. END
 TITLE: Where Can I Get a Small Loan? CONTENT: What Is a Small Loan?\n---------------------\nA small loan could be as small as a few hundred dollars. They can be used for just about anything you want, but are generally best-suited for minor emergency expenses.\nHere are the different types of small loans available to consumers: END
 TITLE: Where Can I Get a Small Loan? CONTENT: What Do I Need to Apply for a Small Loan?\n-----------------------------------------\nEach lender has different requirements when it comes to small loan approval. In general, though, here are the various factors most lenders consider when determining whether you qualify:\n*   **Credit score**: Your credit score is an important indicator of your ability to manage debt and your finances. As a result, many lenders have minimum credit score requirements a borrower needs to meet. The higher your score is, the better your chances of qualifying with favorable terms.\n*   **Credit history**: Even if your credit score is in good shape, lenders will check your credit report for certain items that could affect their decision. That includes things like past-due payments, repossessions, bankruptcies and more.\n*   **Proof of employment**: Regardless of your credit situation, lenders want to know if you have the ability to repay the debt. If you're not currently employed and have no other income sources, you may have a hard time getting approved.\n*   **Income documentation**: In addition to proof of employment, lenders may ask you for evidence of your income to ensure you can repay the debt. They may also use your current debt payments to calculate your debt-to-income ratio, which shows how much of your money goes toward your debt obligations.\n*   **Cosigner**: If you can't get approved for a small loan on your own, you may have a better chance if you have a creditworthy cosigner.\nBefore you apply for a small loan, ask the lender about their requirements. Some lenders may even allow you to get prequalified with a soft inquiry credit check, which won't impact your credit score. This process allows you to view loan offers before you apply. END
 TITLE: Where Can I Get a Small Loan? CONTENT: Improve Your Credit for Better Options\n--------------------------------------\nIf you're not experiencing a financial emergency, it's usually a good idea to work on improving your credit before you apply for a small loan. Even if you need the money now, look for opportunities going forward for how you can increase your credit score.\nTo do this, check your credit score to get an idea of where you stand. Also, get a copy of your credit report and read through it to spot areas you may need to address. This could include getting caught up on past-due payments, paying off collection accounts, reducing your credit card balances or disputing inaccurate or fraudulent information.\nWorking to improve your credit can take time, but can open up your opportunities to more affordable options the next time you need money. END
 TITLE: Where to Get an Emergency Loan With Bad Credit CONTENT: Emergency Loan Options for Bad Credit\n-------------------------------------\nIf you've had some emergency expenses pop up and you need cash fast, there are a lot of lenders who are willing to provide it.\nHowever, getting a loan with bad credit can be a little more challenging because of the risks involved for lenders. That's because data shows that people who have bad credit scores are more likely to default than people with good credit.\nTo help you start your search, here are some emergency loan options for bad credit. END
 TITLE: Where to Get an Emergency Loan With Bad Credit CONTENT: How to Plan for Emergencies\n---------------------------\nTaking on debt every time an emergency expense pops up isn't ideal, but sometimes it's necessary. After you've found the best option for your situation, make a plan to pay back the money as quickly as possible. Then take some time to plan for future emergencies.\nOf course, it's almost impossible to predict when such a thing will happen again, so the sooner you can start the process, the better.\nThe best way to plan for future unexpected expenses is to set up an emergency fund. You can do this with a regular savings account, and some banks may even allow you to open a separate account so it's not mixed with other cash you have set aside for the future.\nOnce you have the account, make a goal to set aside a certain amount each month. Depending on your budget, that may not be a lot, but even a little savings can make a big difference when you need it. And if there is room in your budget to cut back on some discretionary spending, it may be worth doing so at least temporarily while you establish a safety net.\nYou can use these funds if you lose your job or run into medical bills or repairs for your car or home. END
 TITLE: Where to Get an Emergency Loan With Bad Credit CONTENT: Building Your Credit Can Also Help You Prepare\n----------------------------------------------\nAs you work on establishing your emergency fund, also take some time to find out what you need to do to build your credit history. Start by checking your credit score and your credit report to find out where you stand and which areas need to be addressed.\nFor example, if you're behind on some accounts, get caught up as quickly as possible and pay on time going forward. If your credit card balances are high, work on paying them down. And if you've applied for a lot of credit recently, try to take a break.\nAs you take these and other steps to improve your credit, you'll have more options in the future if you ever need to borrow money for an emergency—or anything else, for that matter. END
 TITLE: The Difference Between a Personal Loan and a Line of Credit CONTENT: Personal loans are sometimes called signature loans. They get this name due to the fact that if you qualify, you can receive the loan with just your signature. Because the loan is unsecured, you don't have to put up any assets or collateral, such as a home or vehicle, to secure financing.\nLines of credit, on the other hand, behave like credit card accounts. You can borrow, pay down your balance and access your available credit line again and again. Like a personal loan, you may be able to qualify for an unsecured personal line of credit with just your signature. However, if you secure your line of credit with an asset, you may receive a better interest rate.\n### How to Qualify\nBecause personal loans and lines of credit are two different financial products, they each have different qualification demands. The main difference between the two is that lenders may require your credit to be in better shape to be approved for a line of credit.\nEvery lender is different, of course. But most lenders will want you to meet the following criteria to qualify for a personal loan or line of credit:\n*   Good to exceptional credit rating\n*   Acceptable debt-to-income ratio\n*   Proof of stable income\nRemember, it's a good idea to check your credit on your own before you apply for any type of loan or financial product. You don't want to find out about any surprises or mistakes on your credit report when a lender processes your application.\n### The Application Process\nThe process to apply for a personal loan or a line of credit is similar. First, a lender will review your credit report and score, along with your income and assets, to determine whether extending credit to you is a good risk. The better your credit, the better your odds of approval for either type of financing.\nHere's one of the biggest differences between applying for a personal loan and a line of credit: With a personal loan, you need to know upfront how much money you want to borrow.\n### Interest Rates\nWhen you take out a personal loan, you are typically charged interest on the money you borrowed beginning on day one of the loan. In general, you will be charged a fixed interest rate. This means your interest rate stays the same throughout the life of your loan.\nInterest rates on personal loans largely depend on your credit and your lender. Average rates can range from a little over 4% for borrowers with exceptional credit to as high as 25% for borrowers with poor credit.\nWhile lines of credit may offer you more flexibility, this typically comes at a cost—namely a higher interest rate. Yet unlike personal loans, that interest rate doesn't kick in as soon as you're approved. Rather, you start paying interest on a line of credit once you access any portion of the funds available to you. In addition, the rates on lines of credit are variable and can change over time.\n### How Much Can You Borrow?\nFiguring out how much you can borrow will depend on a variety of factors, such as your income, your credit and the maximum amount of money a lender is willing to issue. As mentioned above, when you take out a personal loan, you receive your full loan amount in one lump sum. On a line of credit, you can borrow up to your account limit. However, provided your account remains in good standing, you can make payments to reduce your balance and then borrow back up to your account limit again, as needed. END
 TITLE: The Difference Between a Personal Loan and a Line of Credit CONTENT: Repaying the Money You Borrowed\n-------------------------------\nIn addition to fixed interest rates, personal loans generally feature a fixed payment amount as well. This means that the size of your monthly payment won't change while you're repaying your loan. Fixed payments can make budgeting simpler. It's easy to plan your monthly expenses when you know the exact amount you're expected to pay on your personal loan.\nYour monthly payments on a line of credit can vary widely from month to month and year to year. This happens because your monthly payment will be based on how much you owe along with the current interest rate on your account. (Remember, lines of credit feature variable interest rates, which are subject to change.) END
 TITLE: The Difference Between a Personal Loan and a Line of Credit CONTENT: When Should I Choose a Personal Loan?\n-------------------------------------\nYou can use a personal loan for a variety of reasons. The freedom to use the money you borrow as you see fit (for the most part) is one of the features that makes personal loans attractive to so many people.\nIf you're looking for a list of ways to use a personal loan, here's a helpful guide. Additionally, here are a few common reasons why people take out personal loans:\n*   Debt consolidation\n*   Major medical expenses\n*   Fixed-price home repairs\nThere are also several potential benefits to using a personal loan over other types of financing when you need to borrow money. These include:\n*   Lower interest rates\n*   No collateral necessary\n*   Fixed rates and payments\nAgain, as with any type of financing, the condition of your credit will impact the rates and terms you're offered on a personal loan. This is just one more example of how having good credit can pay off. END
 TITLE: The Difference Between a Personal Loan and a Line of Credit CONTENT: When Should I Choose a Personal Line of Credit?\n-----------------------------------------------\nLines of credit represent a flexible borrowing option that can be helpful if you don't know in advance how much money you'll need to finance a particular project. Examples of times you might want to use a personal line of credit include:\n*   Home remodeling projects\n*   Ongoing projects with unknown costs\nPeople with variable incomes may benefit from lines of credit as well, to help them cover expenses during gaps in income.\nSome of the benefits of using a personal line of credit when you need to borrow money include:\n*   Flexible borrowing options for expenses spread out over time\n*   Quick access to funds on as-needed basis\nKeep in mind, if you don't have good personal credit, you may find that qualifying for a line of credit is more difficult. Also, while lines of credit can often be cheaper than credit cards, you could possibly qualify for a personal loan with a lower interest rate. END
 TITLE: The Difference Between a Personal Loan and a Line of Credit CONTENT: Making the Choice\n-----------------\nThe bottom line is this: If you can figure out which financial product fits your situation best, there's a chance you could save money and simplify your life.\nIf you take out a personal loan that winds up being too small to cover costs on a big project, you could end up having to borrow again. This means the hassle of another application and the potential for your credit to be impacted negatively by an extra account and inquiry. On the other hand, if you take out a line of credit when you don't really need one, you might be charged a higher interest rate than you could have qualified for with a personal loan.\nDo your homework, including a credit check, before you decide which product to apply for and which lender to use. If you take your time and don't rush into a decision, you can be confident that you're choosing the best deal for your situation. END
 TITLE: What to Know About Subprime Loans CONTENT: How Does a Subprime Loan Work?\n------------------------------\nSubprime loans are designed for people who are struggling with their credit. Either you're just starting to build credit and you have a \"thin\" credit file (with four or fewer credit accounts), or you've made some mistakes in the past and are rebuilding your credit history.\nInstead of requiring you to wait until you have good or excellent credit to get a loan, subprime loans allow you to get the money you need when you need it.\nSubprime lenders offer many of the same loans you can get with good or excellent credit, including subprime auto loans, subprime mortgages and subprime personal loans. Here are some features, though, that can differ:\n*   **Higher interest rates**: Subprime loans typically charge higher interest rates than prime loans. Depending on the type of loan, the difference can be a few percentage points or it can be 10 or more. On short-term loans, this might not be a big deal. But with an auto loan or mortgage, it could mean thousands or even tens of thousands more in interest charges.\n*   **Larger down payments**: Auto and mortgage lenders typically require a larger down payment to help make up for the higher level of risk with subprime loans. With a car loan, for instance, you may need to put down 10% or more rather than 0% to 5% as a down payment, which is typical for borrowers with good or excellent credit. And while personal loans don't require a down payment, you may need to put up your savings as collateral in the event that you default.\n*   **Higher fees**: Subprime loans are more likely to charge origination fees than prime personal loans, and you may also see steeper late-payment fees. END
 TITLE: What to Know About Subprime Loans CONTENT: The Difference Between Subprime and Prime Loans\n-----------------------------------------------\nA subprime loan works similarly to a prime loan in terms of the general setup. The primary difference is that subprime loans tend to charge higher interest rates, and may also charge certain fees you might not see with prime loans.\nThis happens because of risk-based pricing, which is a method lenders use to determine interest rates and other terms based on your creditworthiness. The more likely you are to default—in the lender's eyes, at least—the more a loan can cost in terms of interest and fees.\nWith a relatively short-term loan, such as a personal loan, the difference in overall cost might not be too wide. But on a subprime mortgage loan with payments spread over 30 years, the difference could cost you tens of thousands of dollars more.\nAs a result, it's important to carefully consider whether you need a loan now or if you can afford to wait until your credit has improved and you have a better chance of qualifying for a prime loan. END
 TITLE: What to Know About Subprime Loans CONTENT: How Do I Get a Subprime Loan?\n-----------------------------\nThe best places to go for a subprime loan depends on the type of loan you're looking for. You may choose to look at traditional lenders like big banks or online lenders that specialize in working with people who have subprime credit. Here are some other steps you can take to find the right loan for you:\n*   **Check with your local credit union**: Credit unions are required by law to cap the interest rate on most of their loans at 18%, which is much lower than what other subprime lenders might offer. However, the institution may require that you use your savings or some other asset as collateral to get approved.\n*   **Shop around**: Take your time when researching your options. Apply or get prequalified with at least three or four lenders to make sure you get the best terms you can qualify for.\n*   **Get help**: If you're looking for a personal loan or auto loan, online tools like Experian CreditMatch™ can help you find lenders based on your credit score, saving you time and potentially giving you more options.\nOne thing to watch out for when looking for a subprime loan is payday loans. These loans are often marketed to people with poor or fair credit, but they can make things worse before they help make them better. Payday loans are typically due within 14 days and have astronomical interest rates, making them worth avoiding in general. END
 TITLE: What to Know About Subprime Loans CONTENT: How Do Subprime Loans Affect Credit?\n------------------------------------\nAs with any other loan, a subprime loan can have a positive effect on your credit score, as long as you make your payments on time. That said, it can have the opposite effect if you miss payments or default on the loan altogether, so it's important to have a repayment plan in place.\nAlso, it's important to check with a lender before you apply to make sure they report your account activity to all three national credit reporting agencies. That way you can ensure you'll get credit for maintaining the loan responsibly.\nSome lenders only report to one or two credit reporting agencies, and some might not report at all. If a lender doesn't report to all three, it may be worth looking elsewhere to ensure that your hard work gets the credit it deserves.\nAlso, keep in mind that if you manage your subprime loan well, it can help improve your credit score and give you a better chance to qualify for a prime loan with better terms the next time you need to borrow money. END
 TITLE: What to Know About Subprime Loans CONTENT: Stay on Top of Your Credit Scores\n---------------------------------\nWhether you decide to get a subprime loan now or to wait until you qualify for a prime loan, it's important to know where your credit scores stand at all times. Check your credit score regularly to get an idea of how different actions you take affect it.\nAs you notice improvements over time, you'll not only have the motivation to continue practicing good credit habits but can also learn other ways to build and maintain a good credit score for the long term. This will give you the chance to have better access to favorable terms on future loans and credit cards. END
 TITLE: What Is a Short-Term Personal Loan? CONTENT: How a Short-Term Personal Loan Works\n------------------------------------\nUnlike a traditional personal loan, which you generally pay back over several years, a short-term personal loan is designed to be repaid within a year, or even just a couple weeks depending on the loan. Although the type of short-term personal loan you get will depend on your creditworthiness and the lender you choose, most of them work like this:\n*   You apply for a loan with an online or storefront lender.\n*   The lender performs a credit check or looks at your paystubs or other documents to evaluate your financial history.\n*   If the lender approves your loan request, you'll get a loan offer, including an interest rate and term. You should receive your answer quickly—in fact, many short-term loan providers will get back to you within an hour.\n*   You agree to the loan offer and receive the money. The lender likely will transfer the money to your bank account within 24 hours of approving your loan request. END
 TITLE: What Is a Short-Term Personal Loan? CONTENT: What Are the Types of Short-Term Personal Loans?\n------------------------------------------------\nFor a quick and fairly small cash infusion that you'll pay back in a year or less, you're most likely to hear about payday loans or short-term loans from a bank, credit union or online lender.\nShort-term loans from online lenders, banks and credit unions will vary in loan amounts, interest rates and payback periods. You can reach out to your own bank or credit union to see if it offers short-term personal loans, or research online lenders to find one that may offer the terms you desire.\nA payday loan can provide you with the quick cash you need to make it to your next paycheck, but it's a very expensive option due to its exorbitant interest rates and fees. Many states regulate how much you can borrow with payday loans, and how much lenders can charge in interest and fees—and some states don't allow payday loans at all. That's because people often roll over or reborrow payday loan funds because they can't afford repayment, which can lead to a cycle of skyrocketing debt. Payday loans should only be used as a last resort. END
 TITLE: What Is a Short-Term Personal Loan? CONTENT: What Are Short-Term Personal Loan Interest Rates?\n-------------------------------------------------\nWhile a short-term personal loan may seem like a real lifesaver at first, it can be an expensive way to borrow money. Compared with traditional loans, many short-term personal loans come with much higher interest rates.\nInterest rates will depend on the lender, the type of short-term loan you take out, and your financial history. While rates vary widely, payday loans may charge up to 400% APR, and that doesn't even include all the possible fees you could pay.\nRates vary by loan type and by lender, so it's important to do your research, compare offers, and find the best interest rate you can qualify for rather than just accepting the first loan offer you get. END
 TITLE: What Is a Short-Term Personal Loan? CONTENT: Benefits of Short-Term Loans\n----------------------------\nWhile they're not usually the best choice for borrowing money, short-term personal loans can be helpful in a pinch. Benefits include:\n*   **Fast cash**: A short-term personal loan can give you quick access to the money you need. If you have an unexpected expense that needs to be paid for right away, these loans could help.\n*   **No collateral required**: In most cases, you don't have to tie up your house, car or another asset as collateral to get a short-term personal loan. You can get the money you need without risking a prized possession.\n*   **Bad credit OK with some loan types**: If you have less-than-stellar credit, you may still get approved for certain short-term personal loans. As long as you have regular income, you shouldn't have an issue getting fast cash.\n*   **No long-term commitment**: You don't have to commit to a short-term personal loan for years—you can get the cash you need, pay it back quickly and move on.\n*   **Flexibility**: Some lenders that offer short-term personal loans are flexible and willing to work with you to design a payment plan suited to your specific needs and preferences. Note that this isn't usually the case for payday loans. END
 TITLE: What Is a Short-Term Personal Loan? CONTENT: Drawbacks of Short-Term Loans\n-----------------------------\nShort-term personal loans can provide quick cash, but often at a price. Disadvantages of these loans include:\n*   **High interest rates**: Short-term personal loans typically carry higher interest rates than longer-term loans. If you take out one of these loans, you may incur not only high payments but also a large total loan cost.\n*   **Costly fees**: High fees for late payments, origination and other things can quickly add up, making your short-term personal loan costs skyrocket.\n*   **Not a long-term solution**: While a short-term personal loan can help you in a dire situation when you're short on cash, because of its cost and sometimes onerous terms, it's not a long-term solution to your financial hardships. END
 TITLE: What Is a Short-Term Personal Loan? CONTENT: How a Short-Term Personal Loan Can Affect Your Credit\n-----------------------------------------------------\nIf you take out a short-term personal loan, it's likely to have at least some effect on your credit. If the lender runs a hard inquiry on your credit to decide whether to approve you for a loan, your credit score likely will go down a couple points.\nAnd if you make even one late payment on your loan, your credit score may take a hit. In addition, because a short-term personal loan will add to your debt load, your credit may be negatively impacted.\nIf one of your goals is to build credit, a payday loan will not help as these loans are not reported to credit bureaus. However, other short-term loans are typically reported to credit bureaus and could help improve your credit as long as you stay on top of your payments. END
 TITLE: What Is a Short-Term Personal Loan? CONTENT: How to Get a Short-Term Personal Loan\n-------------------------------------\nGetting a short-term personal loan is a fairly straightforward process that involves the following steps.\n*   **Check your credit score.** Checking your credit score will give you an idea of whether lenders will consider you a risky borrower. Of course, the higher your credit score, the better interest rate and terms you're likely to get. If you're unhappy with your score, focus on improving it.\n*   **Shop around.** Not all lenders that offer short-term personal loans are equal. Take the time to shop around and find a reputable lender with positive online reviews and clear terms and conditions that can offer you an interest rate and term you can afford. Check the lender's eligibility criteria to make sure you qualify.\n*   **Gather required documents**: After you've found a lender, you'll need to collect various personal and financial documents such as your driver's license, paystubs, W-2 tax forms and bank statements.\n*   **Complete the application.** The application process for short-term personal loans varies from lender to lender. However, it's often short, can be completed online, and requires you to submit the documents you gathered.\n*   **Wait for approval.** Fortunately, you won't have to wait long to find out whether you've been approved for this type of loan. Many lenders approve borrowers the same day they apply. Once you're approved and agree to the loan, you'll receive your funds. Your lender will likely deliver the money via direct deposit within a few business days.\nIf your roof starts leaking or your child requires an emergency surgery, taking out a short-term personal loan may be your only option. As long as you shop around for the best interest rates and terms, read the fine print of your contract, and make your payments on time, your experience could be a positive one. END
 TITLE: Does Refinancing a Personal Loan Hurt Your Credit Score? CONTENT: How Refinancing Impacts Your Credit Score\n-----------------------------------------\nHere's a look at the three main steps in the loan refinancing process and how each one can affect your credit scores.\n### 1\\. Shopping for a New Loan\nEach loan application you submit could result in a hard inquiry, a record of when a lender checks your credit report before making a lending decision. Hard inquiries stay on credit reports for two years and may affect credit scores for the first 12 months.\nWhen they impact your credit scores, hard inquiries tend to lead to a small drop. The drop is often offset within a few months as long as you're making on-time payments on your new account and no other negative information gets added to your credit report.\nMultiple hard inquiries during a short period can increase the drop in scores. However, credit scoring models also know that rate shopping is a financially savvy practice.\nWith this in mind, some credit scoring models don't consider inquiries from the last 30 days, meaning your applications from last week won't impact your application this week. Scoring models may also count all the hard inquiries that occurred in a 14- to 45-day window as a single inquiry when calculating your credit scores.\n### 2\\. Opening Your New Account\nOpening the new loan you'll use to refinance your personal loans can impact your credit scores in several ways:\n*   It may shorten your average age of accounts, which could hurt your credit scores.\n*   If you're taking out one new loan to refinance multiple personal loans, that might increase your scores because you'll have fewer open accounts with balances.\n*   As you start repaying your new loan, your on-time payments can help you build a positive credit history, which can increase your scores.\n### 3\\. Paying Off Your Old Loans\nThe loans you refinanced will be closed once they're paid off. The old accounts will remain on your credit reports for up to 10 years, and any negative or positive information associated with the account, such as late or on-time payments, could still impact your credit scores during that time.\nYour scores may be hurt when your closed accounts drop off your credit reports, as that could decrease the length of your credit history and average age of accounts.\n> Find the best personal loans in Experian CreditMatch™. END
 TITLE: Does Refinancing a Personal Loan Hurt Your Credit Score? CONTENT: When to Consider Refinancing a Personal Loan\n--------------------------------------------\nRefinancing a personal loan can help you:\n*   Save money by lowering your interest rate.\n*   Improve your cash flow by lowering your monthly payment.\n*   Make managing your debt easier by combining multiple loans.\nIn some cases, you may be able to accomplish two, or even all three, of these goals at once. However, if you're paying less each month, you might wind up paying more interest overall unless you qualify for a significantly lower interest rate.\nYou may want to look into refinancing if your credit or income has improved since you first took out your personal loan. Even if your creditworthiness has stayed about the same, if interest rates have generally gone down, that might also be a cue to start shopping.\nAs you're comparing loan offers, a debt refinancing or loan consolidation calculator can help you determine your overall cost or savings. END
 TITLE: Does Refinancing a Personal Loan Hurt Your Credit Score? CONTENT: How to Refinance a Loan\n-----------------------\nThese five steps are a summary of the refinancing process, although it can vary depending on the lender and type of loan you're taking out.\n### 1\\. Check Your Credit\nChecking your credit scores can give you an idea of which lenders or loan types might be a good fit for you right now. If you have poor credit, you may want to work on improving your credit before refinancing your personal loan.\n### 2\\. Shop Lenders and Compare Loan Offers\nWhether you're looking for the lowest possible interest rate or lower monthly payments, you may want to submit multiple applications to see which lender offers you the best deal.\nStart by making a list of the lenders that offer loans that meet your criteria. Consider the minimum and maximum loan amounts, terms and interest rates that each lender advertises. If you can find information about their typical credit score requirements, that can help you narrow the list.\nExperian's CreditMatch™ service can also provide you with multiple lenders and loan offers based on your credit profile.\n> Find the best personal loans in Experian CreditMatch™.\n### 3\\. Apply For and Accept a Loan\nOnce you've identified good potential lenders, submit multiple applications starting with the lender you think is the best fit. To limit the impact on your credit scores, try to submit all your applications within 14 days.\nYou can then compare your official loan offers from each lender before accepting the best one.\n### 4\\. Pay Off Your Old Loans\nSome lenders may be able to send the money you're borrowing directly to your current creditors to pay off your loans. Otherwise, the lender might send you the funds, which you can then use to pay off your personal loans.\n### 5\\. Confirm Your Old Loans Are Paid Off\nDon't forget about your old loans until you've confirmed that the accounts have a zero balance and are closed. You don't want to wind up accidentally missing a payment due to poor timing. END
 TITLE: Does Refinancing a Personal Loan Hurt Your Credit Score? CONTENT: Is Refinancing a Personal Loan Worth a Drop in Credit Scores?\n-------------------------------------------------------------\nOverall, refinancing personal loans may lead to a minor drop in your credit scores due to the hard inquiries from the applications and opening of a new credit account. Over time, your scores may recover and then increase if you continually make on-time payments on your new loan. Generally, the small drop is worth it if refinancing can save you money or make managing your loan payments easier. END
 TITLE: Do Parent PLUS Loans Affect Your Credit Score? CONTENT: How Do Parent PLUS Loans Work?\n------------------------------\nA parent PLUS loan is a federal student loan that a parent (and sometimes a stepparent) can use to help pay for a dependent child's undergraduate education. You can learn more about the parent PLUS loan program on the U.S. Department of Education's website, but here are a few important basics:\n*   Before you can apply for a parent PLUS loan, your child must submit the Free Application for Federal Student Aid (FAFSA). The same form is required for your child to apply for federal student loans, along with certain grants and scholarships. A new FAFSA must be submitted ahead of each school year.\n*   If you meet the eligibility requirements, you can apply for a parent PLUS loan using the online direct PLUS loan application. You can borrow up to the cost of attendance at the school, minus financial aid that your child is already receiving.\n*   Unlike federal student loans given to undergraduate students, parent PLUS loans require a credit check. This credit check looks for adverse credit history (discussed below), and won't include a review of your credit scores.\n*   Parent PLUS loans have a disbursement (origination) fee and fixed interest rate. The fee and rate may fluctuate from year to year, but they're the same for all borrowers.\n*   The loan will go directly to the school to pay for tuition, room and board, fees and other educational expenses. If there are excess funds, you may receive them directly or request that they be sent to your child.\n*   While the funds help pay for your child's expenses, the parent who takes out the loan is generally solely responsible for repaying the loan.\n*   By default, your loan payments begin right away. You can request a deferment while your child is in schools and for the six months after they leave, but interest will continue to accrue. You can also choose from several repayment plans. END
 TITLE: Do Parent PLUS Loans Affect Your Credit Score? CONTENT: How Can a Parent PLUS Loan Impact Your Credit Score?\n----------------------------------------------------\nA parent PLUS loan can impact your credit similarly to how other student loans and installment loans, such as an auto and mortgage loan.\nUnless the applying parent has an adverse credit history and requires an endorser (similar to a cosigner), the parent PLUS loan will be issued to one parent and only reported to the credit bureaus under that parent's name. Both parents can take out separate parent PLUS loans, but the total loan amount can't exceed the borrowing limit for the year.\nWhen you apply, the associated credit check can lead to a hard inquiry, which may temporarily hurt your credit by a few points, if at all. Additionally, you'll have a new account on your credit report and a new loan that's balance is equal to the original loan amount. These factors are included in the models many credit score calculations use and have the potential to lower your credit scores.\nAs you make your loan payments on time, however, the new on-time payments can help you build credit. Conversely, missing student loan payments can hurt your credit.\nRemember, the parent who takes out the loan is solely responsible for making the loan payments. Some parents make an informal agreement that their child will repay the loan, but a missed payment will still only be reported to the credit bureaus under the borrower's name.\nIf you think you may have trouble affording a parent PLUS loan payment, reach out to your loan servicer right away. You may be able to temporarily pause your payments or switch to a different repayment plan. If you consolidate your parent PLUS loan with a Direct Consolidation Loan, you can even use the income-contingent repayment plan, which bases your payment amount on your income. END
 TITLE: Do Parent PLUS Loans Affect Your Credit Score? CONTENT: What Credit Score Do You Need to Get a Parent PLUS Loan?\n--------------------------------------------------------\nThe parent PLUS loan credit check doesn't include a credit score check, so there's no minimum credit score requirement. However, the borrower can't have an adverse credit history, which is defined as:\n*   Having over $2,085 in combined debt on your credit report that's 90 or more days past due, or that was sent to collections or charged off within the past two years.\n*   Having experienced one or more of the following in the past five years: Debts discharged through filing bankruptcy, foreclosure, repossession, tax lien, wage garnishment or had a federal student loan go into default or be written-off.\nIf you have an adverse credit history and your loan request is denied, you can appeal the decision if there were extenuating circumstances that led to the adverse credit. For example, you've paid off accounts that were previously in collections.\nAlternatively, you may be able to qualify for a parent PLUS loan with an endorser who doesn't have an adverse credit history, as long as it's not the child using the money for school. In either situation, you'll also need to complete a credit counseling course to take out the loan.\nIf you applied and can't qualify for a parent PLUS loan, your child may be eligible for additional unsubsidized federal student loans. In some cases, this may be preferred as the undergraduate loans have a lower interest rate and origination fee than parent PLUS loans. But it also means your child will be responsible for the entire loan amount. END
 TITLE: Do Parent PLUS Loans Affect Your Credit Score? CONTENT: Consider All Your Funding Options\n---------------------------------\nThe lack of a credit score requirement and guaranteed loan amount makes parent PLUS loans a good fit for some parents who want to help pay for a child's college expenses, but it might not be the best option for everyone. For example, sometimes having a child borrow more in federal student loans and then making payments on their behalf may make more sense in your situation. Or, if you have good credit, you may find private student loans offer a better rate than federal parent PLUS loans, but remember that private loans usually don't offer the same types of benefits federal loans do. Additionally, you should encourage your child to apply for scholarships and grants every school year to limit how much both of you might need to borrow. END
 TITLE: Should You Apply for a Parent PLUS Loan or Private Loan? CONTENT: Parent PLUS Loans vs. Parent Private Student Loans\n--------------------------------------------------\nWhile both parent student loan types are available to help pay college expenses, there are some key differences in how they work. Here's what you need to know about each. END
 TITLE: Should You Apply for a Parent PLUS Loan or Private Loan? CONTENT: How to Decide Which Parent Student Loan Is the Right Choice\n-----------------------------------------------------------\nDepending on your situation, you may qualify for both types of parent student loans, just one or neither. Here's what to consider as you're deciding which option is the better choice for you and your child. END
 TITLE: Should You Apply for a Parent PLUS Loan or Private Loan? CONTENT: How Do Parent Student Loans Impact Credit?\n------------------------------------------\nWhether you borrow money from the federal government or a private student lender, the impact student loans have on your credit is mostly the same. The only difference is that private lenders will run a hard inquiry on your credit report to assess your creditworthiness, which can temporarily decrease your credit score by a few points.\nEither way, parent student loans can represent large debts. Mismanaging either type of loan could have serious credit consequences. To maintain your credit scores, it's crucial that you make your payments on time every month. If you can't, reach out to your lender for some solutions to try to avoid a negative mark on your credit report.\nAlso, keep in mind that if you cosign a student loan with your child, it can have the same impact on both your and their credit histories if they miss a payment.\nOn the flip side, if you make all your payments on time, it can help improve your credit score over time.\nFinally, once your child graduates, you will have the option to refinance the loans in their name and shift responsibility to them. Keep in mind, though, that both you and your child must be on board to transfer the debt. END
 TITLE: Should You Apply for a Parent PLUS Loan or Private Loan? CONTENT: Building Credit Can Improve Your Options\n----------------------------------------\nIf you have time before you need to apply for a parent student loan—or if you don't but plan to borrow for future academic periods—improving your credit score can help you qualify for more favorable terms with private loans, giving you a better chance to save money.\nStart by checking your credit score and credit report to see where you stand. Your credit report will give you the information you need to understand where to focus your efforts as it alerts you to the risk factors helping and hurting your credit score. For example, it may help you realize late payments in your past or high credit card balances are affecting your scores, and encourage you to be more vigilant in the future.\nBuilding credit can take time, but the potential savings can be more than worth the effort it takes to get there. END
 TITLE: Does the FAFSA Affect Your Credit Scores? CONTENT: Does FAFSA Require a Credit Check?\n----------------------------------\nIf you'd like to receive federal student loans, your first step should be making sure you meet the eligibility requirements. Your second step should be filling out the FAFSA, which will ask questions about your—and, if you're a dependent, your parents'—income and savings.\nThe one thing it won't ask for? Your credit scores.\nThat's because, with the exception of parent PLUS loans, most federal student loans don't require a credit check. They are available to prospective students without regard to creditworthiness, and come with a fixed interest rate. (That's why they're the best student loans for bad credit.)\nCompleting the FAFSA, therefore, won't result in a hard inquiry on your credit report or affect your credit scores in any way.\nPrivate student loans are a different story, as your approval and terms are based on your credit history. So when you apply for a private student loan, lenders will run a hard credit check, which can cause a small, temporary dip in your scores. Read more about private student loans. END
 TITLE: Does the FAFSA Affect Your Credit Scores? CONTENT: How Can Federal Student Loans Affect Credit?\n--------------------------------------------\nAlthough federal student loans don't require a credit check, they can affect your credit once you've taken them out. As with all credit products, whether they hurt or help your scores will depend on how you manage them.\nOnce you've finished school, you'll begin repaying your federal student loans after a six-month grace period. If you make your loan payments on time and in full every month, federal student loans can build your credit by:\n*   Providing a history of on-time payments\n*   Increasing your average age of accounts\n*   Boosting your \"credit mix\"\nIf you miss a federal student loan payment by 90 days or more, however, your servicer will report it to the credit bureaus. Not only will late payments negatively impact your scores, but they'll stay on your credit reports for up to seven years.\nAnd, if you don't make payments for 270 days, your federal student loans could go into default. At that point, you'll face a cascade of consequences:\n*   Your entire unpaid balance and interest will immediately become due.\n*   You'll lose eligibility for deferment, forbearance and additional student loans.\n*   Your wages or tax refunds could be garnished.\n*   Your servicer could take you to court.\n*   You'll cause long-lasting damage to your credit scores.\nIf you're at risk of falling behind on your student loans, call your loan servicer immediately to see what your options are. Federal loans come with a range of protections, including temporary relief measures and income-based repayment, that can save your credit scores from the detrimental effects of late payments and default. END
 TITLE: Does the FAFSA Affect Your Credit Scores? CONTENT: How to Apply for Financial Aid\n------------------------------\nThe good news: FAFSA won't affect your credit scores. The bad news: You'll have to complete an online FAFSA form every year you need aid. After the FAFSA comes out in October, you should submit it ASAP to meet your school's and state's deadlines.\nFor a preview of the questions you'll be asked, you can download a free worksheet from the U.S. Department of Education.\nThe information required will depend on your personal situation. If your parents or guardian can claim you as a dependent, you'll need to supply their financial details too. If you're an independent student, you'll only report your information (plus that of your spouse, if you're married). If you're in a special circumstance, such as not being in touch with your parents, you'll be able to indicate that on the FAFSA application.\nAs a baseline, you should have your driver's license handy, plus the following for all parties:\n*   Social Security numbers or Alien Registration numbers\n*   Federal tax returns\n*   Bank statements\n*   Records of untaxed income\nCompleting the FAFSA usually takes less than 30 minutes, but if you don't finish it all in one sitting, you can save your progress and return later. Don't forget to double-check all the fields, especially any info that repopulates—and avoid these other common FAFSA mistakes too. END
 TITLE: Does the FAFSA Affect Your Credit Scores? CONTENT: Why You Should Bother Filling Out the FAFSA\n-------------------------------------------\nCollege is expensive. And while you should carefully consider how much student debt you're willing to take on, you'll never get a dime in federal grants, scholarships or loans if you don't fill out the FAFSA. There's no obligation, either: Once you've received your chosen schools' financial aid packages, you can always request lower loan amounts so you don't get in over your head.\nIn fact, even if you don't think you'll qualify for any financial aid, you should complete the FAFSA anyway. FAFSA isn't only relevant to federal student loans; it's also used by states, schools and other organizations when choosing recipients of grants and scholarships—even ones based on merit rather than financial need.\nSince filling out the FAFSA is relatively quick—and doesn't affect your credit scores—there's no harm in applying. Just proceed with caution when choosing which loans to accept. END
 TITLE: Can You Get Student Loans If You Have Bad Credit Scores? CONTENT: Why Federal Student Loans Are Best for Bad Credit\n-------------------------------------------------\nFederal student loans should be your first stop when borrowing money for college. Not only do they generally have lower interest rates than private student loans, but they also come with a range of protections, such as income-based repayment, loan forgiveness and forbearance or deferment options.\nIf you have limited or bad credit, federal student loans are undoubtedly your best option, because most do not require a credit check (the one exception is parent PLUS loans) or a cosigner. While you must meet the eligibility requirements and fill out a Free Application for Federal Student Aid (FAFSA), your credit scores won't have any impact on the amount of financial support you receive.\nAnother reason federal student loans are best for bad credit? They carry a flat interest rate that applies to all borrowers, regardless of credit scores. So borrowers with bad credit get the same interest rate as those with excellent credit. That's not the case with most other types of loans, including private student loans. END
 TITLE: Can You Get Student Loans If You Have Bad Credit Scores? CONTENT: Can You Get a Private Student Loan With Bad Credit?\n---------------------------------------------------\nWhile federal student loans are preferable to the alternatives, they may not be an option for every borrower. Perhaps you don't qualify, need more financial support than federal loans can offer or have already maxed out your federal loan limit. In that case, you may need to look into private student loans.\nThe thing is, most lenders that issue private student loans will assess your creditworthiness. So, if you have low credit scores, you might only be approved for loans with high interest rates, or your application may be denied altogether.\nTo get a loan with bad credit, you'll need to be strategic. Check your credit reports and scores to understand your credit situation before you begin to explore your borrowing options. You can get a free copy of your credit report from all three consumer credit bureaus through AnnualCreditReport.com. You can see credit scores based on your Experian credit file for free through Experian.\nOnce you start your search, seek out lenders that fit your needs rather than applying for every private student loan you can find, as that could slightly damage your scores (temporarily, at least). One helpful tool is Experian CreditMatch™, which allows you to quickly compare student loan issuers based on their interest rates and credit score requirements.\nIf you're not having any luck—either because you have bad credit or no credit history—you can also consider getting a cosigner. Typically, this is a creditworthy parent or other relative who is willing to share responsibility for the loan.\nAlternatively, you can explore options from lenders that evaluate your future earning potential instead of, or in addition to, your credit. Funding U and Ascent, for example, look at factors such as your school, major and academic performance.\nPrivate student loans can help you get the funding you need for college, but consider them only once you've exhausted all other options, including subsidized and unsubsidized federal student loans, scholarships, grants and assistance from your state. END
 TITLE: Can You Get Student Loans If You Have Bad Credit Scores? CONTENT: How to Improve Your Credit Before Applying for a Private Student Loan\n---------------------------------------------------------------------\nIf you do ultimately decide to take out a private student loan, improving your credit scores can help you qualify for lower interest rates and save you a lot of money in the long run. On a $25,000 student loan at a 9% interest rate, for instance, you'd pay $13,000 in interest over 10 years. With a 6% interest rate on a loan of the same amount, you'd pay nearly $5,000 less in interest by the time the loan is paid off.\nThus, before applying for a private student loan, it's wise to try and increase your credit scores. Here are some strategies for improving bad credit or building credit from the ground up:\n*   **Pay off debt—and pay on time.** If you already have credit card debt, pay off as much as possible before applying for a private student loan. Reducing your credit utilization can give your credit scores a quick boost. And, going forward, always pay your bills on time, as that is crucial to building strong credit scores.\n*   **Open a credit card.** If you have zero credit history, responsible use of a credit card can show lenders you're able to responsibly manage debt. Or, if you've missed payments in the past, a secured card can help you get back on track. Just make sure to pay off your balance every month to keep your utilization low.\n*   **Become an authorized user**. Whether you're building or rebuilding credit, becoming an authorized user on a credit card that belongs to a loved one who always pays their bill on time could help raise your scores.\n*   **Sign up for Experian Boost™† .** No credit history? No problem. This unique service allows you to build credit by adding on-time payments of utility, internet, cellphone and Netflix® bills to your credit report.\n*   **Talk to your landlord.** Since Experian includes positive rental payments on its credit reports, make sure your landlord is reporting payments to Experian RentBureau.\nThe Most Important Thing to Remember About Student Loans\n--------------------------------------------------------\nWhether you decide to use federal student loans, private student loans or a combination of the two, there's one thing you should always remember: Student loans must be paid back. So, even if graduation seems like forever from now, think carefully before signing on the dotted line.\nTo put it in perspective, the average student loan debt was $35,620 in 2019, according to Experian data. If you borrowed that much at the federal student loan interest rate of 2.75%, you'd be on the hook for payments of $340 per month for a whole decade after finishing college.\nIf you borrowed that same amount at a 14% interest rate—which is feasible if you have bad credit and use private student loans—you'd owe a whopping $553 per month post-graduation. In some cities, that could nearly cover your rent! Not to mention, you'd pay a total of $30,747 in interest over 10 years.\nIt's possible to get student loans with bad credit, and a college education is valuable, but it's vital to first crunch the numbers before taking on debt. You're not required to accept the full loan amount you're offered—and if you take only what you need, we promise your future self will love you for it. END
 TITLE: Can You Get Student Loans If You Have Bad Credit Scores? CONTENT: The Most Important Thing to Remember About Student Loans\n--------------------------------------------------------\nWhether you decide to use federal student loans, private student loans or a combination of the two, there's one thing you should always remember: Student loans must be paid back. So, even if graduation seems like forever from now, think carefully before signing on the dotted line.\nTo put it in perspective, the average student loan debt was $35,620 in 2019, according to Experian data. If you borrowed that much at the federal student loan interest rate of 2.75%, you'd be on the hook for payments of $340 per month for a whole decade after finishing college.\nIf you borrowed that same amount at a 14% interest rate—which is feasible if you have bad credit and use private student loans—you'd owe a whopping $553 per month post-graduation. In some cities, that could nearly cover your rent! Not to mention, you'd pay a total of $30,747 in interest over 10 years.\nIt's possible to get student loans with bad credit, and a college education is valuable, but it's vital to first crunch the numbers before taking on debt. You're not required to accept the full loan amount you're offered—and if you take only what you need, we promise your future self will love you for it. END
 TITLE: How to Pay Off Student Loans Faster CONTENT: Choose the Right Student Loan Repayment Plan\n--------------------------------------------\nIf you have federal student loans, your loan servicer will enroll you in a repayment plan when it's time to begin making payments. If you don't choose another option, you'll be placed on the Standard Repayment Plan, which comes with a 10-year term and fixed monthly payments. You'll typically pay the least over the life of the loan with this plan.\nThere are other repayment options available, however, which can help make student loan payments more affordable:\n*   **Graduated Repayment Plan**: This plan also has a 10-year term, but starts with lower payments that increase every two years.\n*   **Extended Repayment Plan**: This plan gives you up to 25 years to repay the loan, but you must have at least $30,000 in federal student loans to qualify.\n*   **Income-Based Repayment Plan**: Repayment on this plan is 10% or 15% of your discretionary income per month over up to 25 years, after which the loan is forgiven.\n*   **Income-Contingent Repayment Plan**: Payment is 20% of your discretionary income or the amount you'd repay if you had fixed payments for 12 years, whichever is less. Any amount left over after 25 years is forgiven.\n*   **Revised Pay As You Earn Repayment Plan**: Payment is 10% of your discretionary income for up to 25 years, after which the loan is forgiven.\nWhile the idea of eventual loan forgiveness may be appealing, keep in mind that any amount forgiven as part of an income-based repayment program is considered taxable income.\nYou can also request a different repayment plan if your financial situation changes, which could help you pay off your loan faster. It's not a simple process, however, so try to choose a repayment plan you think will work for you long term. If you're looking to pay off your loans as quickly as possible and are able to make the payments, a standard repayment plan is the best choice.\nPrivate student loans are not eligible for alternative student loan repayment plans. You will need to contact your loan provider to inquire about repayment plan options. END
 TITLE: How to Pay Off Student Loans Faster CONTENT: Start Paying Off Your Loans as Soon as Possible\n-----------------------------------------------\nStudent loan interest starts accruing the day you receive the funds. But by starting the payments before they're due, you can effectively lower the amount that you'll have to pay.\nIf you have a subsidized federal loan, the federal government will take care of the interest payments while you are enrolled and for up to six months after you leave school or graduate. Making payments during this time will reduce the principal loan amount that's used to calculate interest. To illustrate, say you borrow $30,000 and make payments totaling $5,000 before your first payment is due. You will only pay interest on $25,000 when the repayment period begins.\nIn the case of an unsubsidized loan, the interest is your responsibility from the day the loan hits your bank account. You don't have to make payments until your enrollment drops below half-time or until the six-month grace period after you leave school ends. It's still a good idea to pay at least the interest that accrues before your first payment is due, though—otherwise it will be added to your loan principal, or capitalized, and begin accruing interest.\nPrivate lenders have different policies for assessing student loan interest. Some charge interest from day one, and others wait until students leave or graduate. Either way, it's a good idea to start repaying your loans as soon as you can to reduce the principal balance or interest if it's tacked on while you are in school. END
 TITLE: How to Pay Off Student Loans Faster CONTENT: Pay More Than the Minimum Each Month\n------------------------------------\nIf you can manage, it's a good idea to make more than the minimum payment each month. Any extra funds you pay throughout the month or include with your monthly payment will help you save on interest and pay off your loans faster.\nTo illustrate, assume you have a 10-year, $15,000 student loan with a fixed interest rate of 6%. Your monthly payment will be $166.53, and you will pay $4,983.69 in interest over the life of the loan. If you decide to pay an extra $75 per month, you will pay off the loan in a little over six years and save $1,977.64 in interest.\nBe sure to tell your loan servicer that you want the extra amount added to the current month's payment. This will ensure the additional funds reduce the principal of the loan. Otherwise, the lender will apply the funds to the following month's payment. END
 TITLE: How to Pay Off Student Loans Faster CONTENT: Look at Consolidating Your Loans\n--------------------------------\nSimplify the repayment process by consolidating your federal student loans into a direct consolidation loan. It rolls all your outstanding balances into a single loan product, though your interest rate will be an average of what you're already paying.\nHowever, the loan term is stretched to 30 years, which could lower monthly payment but increase overall loan costs. If you want to pay off your loans faster, you can increase the amount you pay each month. END
 TITLE: How to Pay Off Student Loans Faster CONTENT: Consider Refinancing if Your Credit Has Improved\n------------------------------------------------\nIf your credit is in good shape, you may be able to refinance your student loans to get a lower interest rate and pay down the balances faster. For example, let's say you owe $30,000 on your student loans and have seven years left to make payments. If your current interest rate is 7% and you reduce it to 5% by refinancing, you will save $2,416 in interest.\nLenders will check your credit and confirm you have a steady income source before approving you for a new loan. Many lenders offer a prequalification tool on their website that allows you to check your interest rate without submitting a formal application. It won't impact your credit score since a soft inquiry is generated, and you can get an idea of the loan terms you may qualify for.\nYou can also bring a cosigner, such as a family member, on board if your credit score is a little low but you can afford to make the loan payments. Your cosigner will need to meet the credit and income criteria and agree to make loan payments if you default on the loan agreement.\nKeep in mind that you will lose access to perks, such as deferments, forbearance, income-driven repayment plans and loan forgiveness, if you refinance a federal loan with a private lender. END
 TITLE: How to Pay Off Student Loans Faster CONTENT: Utilize Automatic Payments\n--------------------------\nEnroll in autopay to ensure you never miss a student loan payment, get charged late payment fees or have a late payment reported to the credit bureaus. You may even get a small interest rate reduction by signing up for automatic payments.\nFederal student loan recipients get a quarter-point interest rate discount if they sign up for automatic debit. Some private student loan servicers also offer interest rate discounts if you sign up for autopay. Reach out to your loan provider to inquire. END
 TITLE: How to Pay Off Student Loans Faster CONTENT: Get a Side Hustle\n-----------------\nYou can shave years off your repayment period by increasing your income with a side job that provides extra income you can put straight toward your loans. If you're still in school, apply for a part-time job on campus or get a paid internship to earn extra money. Tutoring and food delivery are other viable options.\nIf you're already working full time and can squeeze in some extra work hours, you could pursue freelance opportunities online. There are options for many skill sets, such as writing, graphic design, social media advertising, digital marketing and web development. END
 TITLE: How Does Your Major Affect How Much You Should Borrow in Student Loans? CONTENT: Popular College Majors and Expected Salaries\n--------------------------------------------\nOne of the most important things to consider when deciding how much student loan debt to take on is how much you expect to make once you start working. While it's impossible to know the future, it's wise to study up on the average income for jobs you'll be qualified for once you graduate. If the average income for your chosen field of study is on the lower end of spectrum, you'll likely have a harder time paying back large amounts of student debt.\nAccording to the U.S. Department of Education, here are the expected salaries for 25- to 29-year-old workers with bachelor's degrees in 10 popular fields:\n1.  Computer and information sciences: $70,100\n2.  Finance: $65,300\n3.  Accounting: $60,000\n4.  Nursing: $58,700\n5.  Political science and government: $50,600\n6.  Communications and communication technologies: $45,600\n7.  History: $45,100\n8.  English language and literature: $44,600\n9.  Education: $43,000\n10.  Liberal arts: $40,300\nOf course, your expected salary can be more than that if you choose to get a graduate degree. Your future income can also vary depending on the different career choices you make after graduation. But in general, it's good to get a basic idea of what you can expect. END
 TITLE: How Does Your Major Affect How Much You Should Borrow in Student Loans? CONTENT: Try Matching Your Student Loans to Expected Salary\n--------------------------------------------------\nAccording to some experts, you should try to limit your student loans so they won't cause you to spend more than 10% of your gross income on monthly payments. Once your salary expectations are clear, you can use an online student loan calculator to find out how much your student loans will cost you on a monthly basis and determine how much you can afford.\nFor example, let's say you're expecting to earn about $40,000 in the first years of your career—that's roughly $3,333 per month, which means you should try to limit your student loan borrowing to keep your payments below $333.\nWith the current undergraduate federal loan interest rate at 2.75% and a standard repayment term of 10 years, aiming for a $333 monthly payment would allow you to borrow up to about $34,900. Just keep in mind that interest rates change each school year, so you'll need to run this calculation every time you plan to borrow money. END
 TITLE: How Does Your Major Affect How Much You Should Borrow in Student Loans? CONTENT: What to Consider When Deciding How Much to Take Out in Student Loans\n--------------------------------------------------------------------\nYour expected salary is an important indicator of how much you may be able to afford in student loan payments, but that doesn't mean you should borrow as much as you think you'll be able to repay. First you need to understand your financial needs as well as what you can do to secure income from other sources to reduce the amount you'll have to borrow. Here are some more factors to consider:\n*   **Cost of attendance**: The cost of attending college is more than just tuition and fees. You'll also need to pay for supplies, books, housing, food, transportation and more. Also, some colleges are more expensive than others. Your university will provide an estimated cost of attendance, which can give you more insight into how much your college experience will cost.\n*   **Employment income**: If you're working during school, you can use that money to reduce your need for student loans.\n*   **Scholarships and grants**: These sources are the best way to pay for college because they don't require you to pay any money back. Also, most scholarships and grants don't have tax implications, so you don't have to worry about that expense either. Apply for scholarships and grants through the Free Application for Federal Student Aid (FAFSA), directly with your school and with private organizations through websites like Scholarships.com and Fastweb.\n*   **College savings**: If you or your parents have managed to set aside money to help pay for college, those funds can make a big difference in how much you need to borrow in student loan debt.\nIn general, the more money you can get from sources that don't require repayment, the better off you'll be in the long term. END
 TITLE: How Does Your Major Affect How Much You Should Borrow in Student Loans? CONTENT: Student Loans and Your Credit Report\n------------------------------------\nTaking out student loans isn't ideal, but may be necessary to get you through school and start your career. Another benefit is that student loans can also help you build your credit history.\nLike any other loan, your student loans will be reported to the three national credit bureaus—Experian, TransUnion and Equifax. Once you start making payments after you graduate, your payment history will also be reported and can help you establish a credit file.\nEven after you pay off your student loans, that information can remain on your credit reports for 10 years after the account is closed, which can further support your credit score if the information is positive.\nOn the flip side, student loans can harm your credit if you miss even one payment. The more payments you miss, the more damage your score will suffer. Defaulting on a loan can make things much worse.\nIf you ever anticipate that you might miss a payment on your student loans, reach out to your loan servicer and request some relief in the form of an income-driven repayment plan, forbearance or deferment. Be forewarned, however, that some of these options are available only on federal loans. Relief options for private loans are generally less generous. END
 TITLE: How Does Your Major Affect How Much You Should Borrow in Student Loans? CONTENT: Building Credit in College Can Give You More Savings Opportunities\n------------------------------------------------------------------\nBuilding credit in college can be challenging, but establishing your credit history now could make it even easier to pay off your student loans in the future.\nMore specifically, building and maintaining a good credit history may make it possible for you to refinance your student loans after graduation at a lower interest rate than what you're paying right now. Even if you can't or don't want to refinance your student loans, a good credit score will save you money with other loan types and in other areas of your financial life.\nIf you find one that appeals to you, a student credit card can help you build your credit history. In some cases, you may need a cosigner to get approved. If you can't, try asking a parent to add you as an authorized user on their credit card account. The entire history of the account will be added to your credit report if it's positive, which can help you start the process of building credit.\nMake it a goal to monitor your credit regularly to keep track of your progress and address potential issues as they arise. As you continue to pay off your student loans and build a positive payment history, you should see your credit scores start to reflect your progress. END
 TITLE: How Do I Qualify for a Private Student Loan? CONTENT: Who Is Eligible for a Private Student Loan?\n-------------------------------------------\nAs with any type of loan, private student loan lenders are careful when it comes to who they'll lend money to. Here the main factors they'll look at when deciding whether to approve your loan application:\n*   **Credit score and credit history**: There's no set credit score you need to qualify, but the better your credit scores are, the more likely you are to get approved. Good credit also helps you qualify for lower interest rates. If your credit is poor, consider applying with a cosigner. You can also review your credit report and look for ways to improve your credit before applying.\n*   **Income and debt**: Even if you're not earning much, having a source of income can help you qualify. Lenders may also look at your debt-to-income ratio (DTI). This ratio compares your income with the amount you owe toward your debts each month. A lower DTI will help you qualify for better loans.\n*   **Enrollment in a qualified educational program**: Before approving your loan, the lender may contact your school to verify your enrollment. They may even check to make sure you're not borrowing more than you need for tuition and other education expenses. You may have to be enrolled full time to qualify for a private loan, and the lender may not approve all types of colleges and degree programs. END
 TITLE: How Do I Qualify for a Private Student Loan? CONTENT: How Private Student Loans and Federal Student Loans Differ\n----------------------------------------------------------\nWhile there are many types of student loans, each can be categorized in one of two ways: private or federal. There are important differences between federal and private student loans, including how you qualify. END
 TITLE: How Do I Qualify for a Private Student Loan? CONTENT: Where Can You Get a Private Student Loan?\n-----------------------------------------\nMany lenders offer private student loans, including banks, credit unions, schools and online lenders. Loan terms, the amount you can borrow and qualifying uses for the money can vary greatly from one lender to the next, so make sure to compare multiple lenders before applying. Here are a few places to search:\n*   **Online lenders**: You can use search tools like Experian Credit Match™ to quickly compare loan offerings all in one place.\n*   **Your school**: Contact your school's financial aid office to find out what loans the school offers directly and if there are any state agency loans available. You can also ask if the school has a list of lenders who work with them.\n*   **Your bank or credit union**: The financial institution you already do your banking with may offer low-rate student loans. Many banks and credit unions also offer discounts to qualified customers.\nWhen you're ready to begin applying, you can submit applications through most lenders' websites. Be prepared to share the following details as part of your application:\n*   Your degree or program\n*   The school you'll be or are attending\n*   How much money you need to borrow\n*   Your basic personal and financial information\n*   Your cosigner's information, if you're applying with one END
 TITLE: How Do I Qualify for a Private Student Loan? CONTENT: How Can Private Student Loans Affect Your Credit?\n-------------------------------------------------\nPrivate student loans impact your credit in several ways. Applying for a loan can cause a hard inquiry to appear on your credit report, which may have a negative but temporary impact on your credit scores. One way to reduce that negative impact is to get prequalified before you apply. When you prequalify, the lender gives an estimate of the loan terms you're likely to qualify for, including the amount you may be able to borrow.\nOnce you take out a student loan, your new debt will further impact your credit reports and scores. If you miss a payment, your scores will drop, and late student loan payments will stay on your reports for seven years. On the other hand, paying your student loan on time every month can help you build a strong credit profile.\nThe amount owed on your loan is another factor that affects your scores. Unpaid debt can reduce your scores, even if payments aren't due yet. Paying down the balance over time will help you improve your scores and build up a good credit history. END
 TITLE: How Do I Qualify for a Private Student Loan? CONTENT: Carefully Consider Your Options\n-------------------------------\nThere is no set credit score that qualifies you for a private student loan. Even with good credit, private student loans can be costly. The safest and most cost-effective way to fund your education is to apply for federal loans, scholarships and grants.\nIf you need additional funds, shop for a private student loan carefully. Start by reviewing your free credit report to look for ways it can be improved. Then you can compare prequalification offers from multiple lenders to find the best deal. If you still have trouble getting prequalified, or your prequalification offers are less than ideal, consider applying with a cosigner. END
 TITLE: What Is Public Service Loan Forgiveness? CONTENT: How Does Public Service Loan Forgiveness Work?\n----------------------------------------------\nThe PSLF program is designed to ease the debt burden of college graduates who take public sector jobs, such as teaching or social work, that typically pay less than similar jobs in the private sector. The program was created by an act of Congress in 2007 to encourage more students to enter public service careers.\nBefore you get too excited at the prospect of wiping out all your student debt, however, it's important to know the PSLF does not forgive your entire student loan. It forgives any balance remaining on your federal direct loans once you've made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer. (As you can see, there are a lot of qualifications to meet.) Still, as of June 2020, the average loan amount forgiven under the program was $61,592—not exactly pocket change. If you have a federal student loan, it's worth learning more about how PSLF works. END
 TITLE: What Is Public Service Loan Forgiveness? CONTENT: How to Apply for Public Service Loan Forgiveness\n------------------------------------------------\nOnce you've met all the criteria listed above, you're ready to apply for public service loan forgiveness. You'll need to complete and submit the Public Service Loan Forgiveness: Application for Forgiveness form. Your employer must complete the Employment Certification section of the application. If you had multiple qualifying employers over the 10-year period and haven't been submitting Employment Certification Forms annually, you'll need to submit a form for each employer at this point.\nMail or fax the application and Employment Certification Forms to FedLoan Servicing, the federal loan servicer for the PSLF Program. If FedLoan Servicing is already your loan servicer, you can apply and upload your documents on their website.\nOnce FedLoan Servicing has all the documents they need to process your application, they'll notify you. You don't have to keep making loan payments while your loan forgiveness application is being processed, although you can do so if you want. Once your application is approved, the remaining balance of your eligible Direct Loans—including all outstanding interest and principal—will be forgiven, and you'll get a refund for any extra payments you made.\nOne important note: You must be working for a qualifying employer when you submit your PSLF application _and_ when your loan balance is forgiven. If you're considering changing jobs to a non-qualifying employer, don't do so until you're sure the loan forgiveness process is complete. END
 TITLE: What Is Public Service Loan Forgiveness? CONTENT: What to Do if You're Denied Public Service Loan Forgiveness\n-----------------------------------------------------------\nIf FedLoan Servicing determines you're not eligible for loan forgiveness, you'll get a notification explaining why your application was denied, and you'll have to resume making loan payments. As of June 2020, over half of applicants to the program were rejected because they hadn't made 120 qualifying payments. If that's your situation, you may be eligible for temporary loan forgiveness while you continue making qualified payments to reach the 120 mark.\nIf your PSLF application is denied, there are a few alternatives:\n**Find the right repayment method.** Lowering your monthly payments can reduce the bite your student loans take out of your budget. The federal government offers four income-driven repayment plans that can shrink your monthly payments to as little as 10% of your discretionary income. Although stretching your loan term to 20 or 25 years means you'll pay more in interest over the life of the loan, you may want to explore this option if you're struggling to make your payments. Consult your loan servicer to see if you qualify for income-based repayment (IBR), Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE) or Income-Contingent Repayment (ICR) plans and determine which plan will work best for you.\n**Investigate other student loan forgiveness programs.** Each of the four income-driven repayment plans above offers loan forgiveness after 20 to 25 years. Unlike with PSLF, the amount forgiven will be treated as income in the year it's forgiven and will be taxed.\n**Consider refinancing your loans.** Refinancing your federal student loans at a lower interest rate can reduce both your monthly payments and the total interest you'll pay. Refinancing is done through a private lender, which pays off your student loans and issues you a new loan for that amount. You can refinance one loan or consolidate multiple loans into one and make it easier to keep track of your payments. Keep in mind that when you refinance your federal loan with a private lender, you'll lose access to federal loan protections such as deferment, loan forgiveness and income-driven repayment plans.\nYou'll generally need a FICO® Score☉ of 670 or above, a low debt-to-income ratio and a steady income to refinance student loans. Before you apply for a loan, get a copy of your credit report and check your credit score to see where you stand. If your score isn't quite where you want it to be, improving it before you apply for a loan can help improve your odds of qualifying.\n**Look into consolidating your loans.** If you have several federal student loans, you might benefit from consolidating your loans. Consolidation combines several federal student loans into one federal student loan with one monthly payment. This won't reduce your interest rate—your new loan will have a fixed interest rate that's a weighted average of the rates for your previous loans, rounded up to the next one-eighth of 1%. In addition, any outstanding interest gets added to your balance, so you'll accrue interest on a larger loan amount. Some income-driven repayment plans require consolidating your loans. You might also want to consolidate loans to simplify your payments and avoid missing due dates. END
 TITLE: What Is Public Service Loan Forgiveness? CONTENT: Student Loans and Your Credit\n-----------------------------\nNo matter what type of repayment plan you have, try to always make your student loan payments on time; doing so helps build your credit score. If you meet certain criteria, however, paying your student loans has the added bonus of helping you qualify for public service loan forgiveness. Even if your application for PSLF is denied, options such as adjusting your repayment plan, refinancing your loans, or consolidating your loans can make it easier to stay current on your loan payments—a key factor in maintaining a strong credit score. END
 TITLE: When Do Student Loans Start Accruing Interest? CONTENT: How Does Interest Work for Subsidized Loans?\n--------------------------------------------\nDirect subsidized loans are student loans offered by the federal government to undergraduate students who demonstrate financial need. They start accruing interest the day you receive your loan.\nThe federal government pays the interest on subsidized loans while you're a student at least half-time, during the six-month grace period following graduation and during any loan deferments. Once your grace period ends, you'll begin making loan payments, including interest, on your direct subsidized loans. END
 TITLE: When Do Student Loans Start Accruing Interest? CONTENT: When Do Unsubsidized Loans Accrue Interest?\n-------------------------------------------\nDirect unsubsidized loans are also student loans offered by the federal government and are available to undergraduate and graduate students regardless of financial need.\nDirect PLUS loans, often referred to as parent PLUS loans or grad PLUS loans, are another unsubsidized loan option. Parent PLUS loans are for the parents of undergraduate students, while graduate PLUS loans are for professional and graduate students.\nThe interest on both direct unsubsidized and direct PLUS loans begins the day you receive the funds. Unlike with direct subsidized loans, however, you are responsible for all interest charges on unsubsidized loans, from the moment you take out the loan until the day you pay it off.\nYou don't have to make monthly payments on direct unsubsidized loans while enrolled at least half-time or during the grace period. PLUS loan recipients also have the option to delay payments until the loan recipient graduates, is no longer a student at least half-time or leaves school.\nThat said, paying at least the interest on an unsubsidized loan before you are required to begin making monthly loan payments can save you a significant amount of money. That's because the accrued interest will be \"capitalized,\" or added to your original principal amount, once the grace period ends. At that point your loan will begin accruing interest on the new loan amount—the principal plus the capitalized interest. END
 TITLE: When Do Student Loans Start Accruing Interest? CONTENT: When Does Interest Start for Private Student Loans?\n---------------------------------------------------\nPrivate student loans are loans offered by banks, credit unions and other providers to help students with education expenses. As with federal student loans, private student loan interest typically begins accruing when you receive the loan funds.\nThe terms you receive on a private student loan will depend on the lender, and the interest rate can be fixed or variable. A fixed rate stays the same for the entire loan, while a variable interest rate can change over time.\nMany private loans require you to begin making payments while you are in school, but others may allow you to defer payments while you are enrolled. Check your loan agreement or call the lender directly to learn more about how they charge interest and when payment is required. END
 TITLE: When Do Student Loans Start Accruing Interest? CONTENT: Is There a Grace Period?\n------------------------\nMany loan providers offer a grace period that postpones your loan payments until after you leave school and have the opportunity to start earning a decent salary. That grace period can be as short as a few months or as long as six months. So, for example, if you leave school in June and your lender gives you a six-month grace period, your first loan payment will be due in January of the following year.\nNot all grace periods are the same, though. It depends on the loan type and servicer. Below are the grace periods for both federal and private loans:\n*   **Subsidized and unsubsidized direct federal loans**: Six months\n*   **PLUS federal loans**: No grace period. However, graduate and professional students are given an automatic six-month deferment on loan payments; parents with PLUS loans can request a six-month deferment. Contact your servicer to find out more.\n*   **Private loans**: Varies by lender\nThinking of delaying your student loan payments until the grace period is over? Doing so can help you keep more money in your pocket for now, but could mean increasing the total cost of the loan depending on the type of loan you have. As mentioned, interest will continue to accrue on unsubsidized loans and make them even more costly over time due to capitalized interest.\nHowever, it won't hurt to let the grace period run its course if your loans are subsidized. You don't pay interest on these loans until it's time to start repaying them, so the original loan amount will be the same amount you owe when the grace period is over. END
 TITLE: When Do Student Loans Start Accruing Interest? CONTENT: How to Pay Off Student Loans\n----------------------------\nNow that you know when interest starts on your student loans, it's time to develop a repayment strategy. Here are some tips to help you save a bundle on interest when repaying your student loans. END
 TITLE: Can I Apply for FAFSA With Bad Credit? CONTENT: Does the FAFSA Require a Credit Check?\n--------------------------------------\nGenerally, federal student loans and other financial aid do not have a credit requirement. As a result, your FAFSA application won't require credit information, and thus the Department of Education won't check it. The one exception is Parent PLUS loans. In addition, if you apply for private student loans, the lender may require a credit check (more on that later).\nFederal student loans charge a fixed interest rate that is the same for all borrowers. For the 2020-2021 school year, that rate is 2.75% for undergraduate borrowers and 4.30% for graduate borrowers. Because of their low interest rates and lack of credit requirement, federal student loans are almost always the best borrowing option for those with bad credit. END
 TITLE: Can I Apply for FAFSA With Bad Credit? CONTENT: How to Apply for the FAFSA\n--------------------------\nThe FAFSA is available online starting October 1 for the following school year. It's free, though you must complete it for each year you're in school. While you'll usually have until early summer to complete the application, it's best to do so as soon as possible to have the best chance of getting more student aid.\nWhen you fill out the FAFSA, you'll be asked to submit a significant amount of information, such as:\n*   Your Social Security number (and if you're a dependent student, your parents' Social Security numbers)\n*   Your driver's license number if you have one\n*   Tax return information (for both yourself and your parents if you're a dependent)\n*   The amount you and your parents have in savings\n*   The list of schools you're applying to or have been accepted to\nThis information helps the government estimate how much your education will likely cost, how much your family can contribute and how much financial aid you'll probably need.\nThere are a few common FAFSA mistakes you should make sure to avoid:\n*   **Submitting the form late**: Financial aid is often limited, and if you submit your FAFSA at the last minute or even past the deadline, you may miss out on certain aid options. Some forms of aid, such as university grants, are especially limited and doled out on a first-come, first-served basis. If you complete the FAFSA as soon as possible, you may be more likely to access these opportunities.\n*   **Assuming you're not eligible**: You may assume if you don't get financial aid one year, you won't get any the following year. Always apply for FAFSA, even if you didn't receive aid the prior year, since it doesn't rule out you receiving it in the future. If your family's income has changed, you may be newly eligible for certain aid, or there may be different aid options in one year versus another. Also, you have to submit the FAFSA to be eligible for federal student loans, which may be your best funding option if you have bad credit.\n*   **Thinking your family makes too much money**: You may be surprised at what income level can still be considered as having need. In addition, some schools offer financial aid that isn't need-based, and you can apply for student loans even without demonstrating financial need. There's no downside to filling out the FAFSA, especially since it's free and there's no credit check. END
 TITLE: Can I Apply for FAFSA With Bad Credit? CONTENT: Alternative Ways to Pay for School\n----------------------------------\nOnce your FAFSA is processed, your school will send you an aid offer letter or upload it to the financial aid section of your student portal. It will indicate which options you qualify for and ask you to accept those you want.\nThe federal government suggests students first accept any free aid offers, such as scholarships and grants, since these don't require repayment. The next best option is \"earned aid,\" such as work-study programs that help you pay for school by working on campus. Then you can consider federal student loans, which have to be repaid with interest, but typically have lower interest rates and more favorable terms than private loans.\nStudents with the most financial need may qualify for subsidized federal loans, which don't start accruing interest until after you leave school. If you're not eligible for these, you may be offered unsubsidized federal loans, which start accruing interest immediately but still have low interest rates and generous repayment terms, including options for deferment and forbearance.\nIf the financial aid package you receive isn't enough to cover education costs, here are some other options to help you pay for higher education:\n*   **Apply for private student loans.** These loans are obtained through a private lender, such as a bank or student loan provider like Sallie Mae. The interest rates are usually higher than federal student loans and private loans don't come with government deferment or forgiveness programs. They also usually require a credit check, so students without any credit history will likely need a parent or guardian to cosign. Rather than opting for the first lender you encounter, it's wise to obtain quotes from several different lenders to make sure you're getting the best deal possible. Even a small difference in your interest rate can make a huge impact in how much money you spend over time.\n*   **Apply for other scholarships.** While the FAFSA puts you in the running for some scholarships, there are thousands of others offered by various businesses, organizations, states and local governments. Scour sites like Fastweb or Scholarships.com and apply to any you may be eligible for. Even if they're just for a few hundred dollars, they can add up—and unlike loans, they don't require repayment.\n*   **Get a part-time job****.** Just because you don't qualify for a federal work-study program doesn't mean you can't find a job elsewhere to help offset your college expenses. You could work in retail or at a restaurant near campus, deliver meals or groceries, or babysit for local families. END
 TITLE: Can I Apply for FAFSA With Bad Credit? CONTENT: Apply Yourself\n--------------\nHaving bad credit won't prevent you from applying for the FAFSA—or getting financial aid. Whether you're awarded grants, scholarships or federal student loans, completing the FAFSA is the first step, so don't let your credit stop you. END
 TITLE: Didn’t Get CARES Act Relief on Your Student Loans? Consider Refinancing CONTENT: How Student Loan Refinancing Works\n----------------------------------\nStudent loan refinancing involves replacing one or more existing student loans with a new one offered by a private lender. You can refinance federal loans, private loans and even both together if you want.\nThere are several private lenders that offer student loan refinancing options, and most of them allow you to get prequalified before you apply. This process allows you to easily shop around and compare rate offers from multiple lenders to ensure you get the best one.\nTo give you an idea of the potential benefit, let's say you have $20,000 in student loans and an average interest rate of 5.75%. With a 10-year repayment plan, your monthly payment would be $220, and you'd pay $6,345 in interest over the life of your loans.\nIf you were to refinance those loans at a 4.5% interest rate, it would reduce your monthly payment to $207, which is only a $13 decrease. But over 10 years, you'd save $1,472 in interest.\nDepending on how much debt you have and the interest rate you qualify for, you could get even more savings through refinancing. END
 TITLE: Didn’t Get CARES Act Relief on Your Student Loans? Consider Refinancing CONTENT: The Benefits of Student Loan Refinancing\n----------------------------------------\nThere are several ways that student loan refinancing can help you with your debt. The more student debt you have and the higher your current interest rates, the more you stand to benefit.\n*   **Lower interest rates**: If you qualify, you could score a lower interest rate than what you're currently paying. This will not only reduce how much you pay each month but also lower your total interest charges over the life of your new loan.\n*   **Payment flexibility**: Student loan refinancing lenders offer flexible repayment terms, which can range from five to 20 years. If your budget is tight, you could get an even lower monthly payment by extending your repayment term. With the previous example, for instance, if you were to keep the same interest rate but extend your repayment term to 20 years, your monthly payment would be $140 instead of $220. Just keep in mind that your total interest charges would more than double.\n*   **Choice of lender**: Federal student loan borrowers don't get a choice in who their loan servicer is when they get approved for new loans. And if you have private loans, your options may have been somewhat limited as a college student. But with refinancing, you have the chance to choose your new lender based on their interest rates and other features, such as unemployment protection, forbearance options and more.\nIf you're considering refinancing, think about these potential benefits and how they might help you with your current financial situation. END
 TITLE: Didn’t Get CARES Act Relief on Your Student Loans? Consider Refinancing CONTENT: The Drawbacks of Student Loan Refinancing\n-----------------------------------------\nWhile there are some clear benefits to refinancing your student loans, there are also some potential problems that could make your situation more challenging.\n*   **No guarantee**: Refinancing isn't available to everyone. The average FICO® Score☉ and annual income for approved borrowers are 774 and $98,156, respectively, according to Purefy, a student loan refinancing lender. If you can't get approved on your own, you may be able to apply with a cosigner. But that's not always feasible.\n*   **Loss of federal benefits**: If you have federal student loans, you have access to certain benefits that private loans don't offer. That includes student loan forgiveness programs and income-driven repayment plans. Also, if you're struggling financially, the federal government typically offers more generous forbearance options than private lenders.\n*   **Possible variable interest rates**: If your goal is to lower your interest rate, make sure you understand which type of rate you're getting. Variable interest rates generally start off lower than fixed rates, but they fluctuate over time with the current market rates, and you may end up with a higher interest rate than the one you have now. Fixed rates may be higher than variable rates, but they provide the certainty of a rate that won't change for the life of your loan.\nDepending on your situation, these drawbacks may not be deal breakers. But it's crucial that you take the time to understand how refinancing could potentially hurt your financial situation even more instead of making it better. END
 TITLE: Didn’t Get CARES Act Relief on Your Student Loans? Consider Refinancing CONTENT: Consider an Income-Driven Repayment Plan\n----------------------------------------\nIf you have federal student loans that aren't covered under the CARES Act or you think you'll need more relief after the CARES Act suspension period ends, consider applying for an income-driven repayment plan instead of refinancing.\nThe U.S. Department of Education's income-driven repayment plans reduce your monthly payment to between 10% and 20% of your discretionary income. They also extend your repayment term to 20 or 25 years, with the chance of forgiveness of your remaining balance once that period ends.\nTaking on an income-driven repayment plan will mean paying more interest over time, and any loan forgiveness you receive will be considered taxable income. But if you need relief now, it could provide more relief than refinancing because payments are based on your actual income.\nAlso, choosing an income-driven repayment plan doesn't rule out your option to refinance at a later time. On the flip side, you can't convert a private refinance loan back into a federal loan. END
 TITLE: Didn’t Get CARES Act Relief on Your Student Loans? Consider Refinancing CONTENT: Check Your Credit Before Considering Refinancing\n------------------------------------------------\nBecause your credit score plays an important role in your odds of getting approved for refinancing and your interest rate, it's important to check your credit score to see where you stand.\nAlso, check your credit report to see if there are any areas you can address before you apply. For example, you may have high credit card balances, past-due payments or even inaccurate information that could be hurting your credit score.\nWorking to improve your credit can take some time, but the effort can pay off if it helps you qualify for a lower interest rate and better overall terms than what you have right now. END
 TITLE: Who Services My Federal Student Loans? CONTENT: How Do I Find Out Who Services My Student Loans?\n------------------------------------------------\nA student loan servicer acts as a middleman between you and your lender, which is the federal government in the case of federal student loans.\nWhen you apply for federal loans, they'll be automatically assigned to a servicer by the Federal Student Aid office—and, unfortunately, you don't have a choice in the matter. It's even possible to have different loans assigned to different servicers.\nFederal loan servicers include:\n*   CornerStone\n*   Default Resolution Group\/Maximus Federal Services Inc.\n*   ECSI\n*   FedLoan Servicing (PHEAA)\n*   Granite State Management & Resources\n*   Great Lakes Educational Loan Services Inc.\n*   HESC\/Edfinancial\n*   MOHELA\n*   Navient\n*   Nelnet\n*   OSLA Servicing\nIf you're not sure who your loan servicer is for a particular loan, you can sign in to your federal student aid dashboard or call the Federal Student Aid Information Center at 800-433-3243 to find out and to get the servicer's contact information.\nKeep in mind that if you are still in school and need information about your loan's status or disbursement date for the current school year, you'll deal directly with your school's financial aid office. However, if the loan you want to inquire about is from a past year, you'll contact your servicer if you need to:\n*   Inform them that your full-time enrollment status is changing\n*   Update your contact information\n*   Inquire about loan repayment options\n*   Request help with making your loan payment\n*   Have other questions about your student loan(s) END
 TITLE: Who Services My Federal Student Loans? CONTENT: Can I Change My Student Loan Servicer?\n--------------------------------------\nIf you're having trouble with your current servicer or you have multiple servicers for different loans, it is possible to make a switch to a new one. Here's how:\n*   **Consolidate your federal loans.** When you apply for a direct consolidation loan, you can replace one or more of your student loans with a new one. During the process, you'll have the option to choose your new servicer, giving you some control over who you work with. Keep in mind, though, that when you consolidate federal loans through this program, your new interest rate may be slightly higher than your current weighted-average rate across all your loans.\n*   **Apply for Public Service Loan Forgiveness.** FedLoan Servicing is the only federal loan servicer that manages the Public Service Loan Forgiveness (PSLF) program. So if you're working toward obtaining forgiveness for your federal loans through PSLF, applying will automatically change your servicer to FedLoan.\n*   **Refinance your loans with a private lender.** Refinancing your student loans allows you to replace both your servicer and lender (the federal government) with a private lender. Depending on your credit history and income situation, it could also potentially help you get a lower interest rate and monthly payment. Keep in mind, though, that better loan terms aren't guaranteed, and refinancing will cause you to lose certain federal benefits, such as access to loan forgiveness programs and income-driven repayment plans. END
 TITLE: Who Services My Federal Student Loans? CONTENT: How to Manage Student Loans With Multiple Servicers\n---------------------------------------------------\nIn some cases, some of your federal student loans could be assigned to different loan servicers.\nThis arrangement can make your life complicated because each servicer may have separate due dates, and you'd need to contact each one individually if you want to request forbearance, deferment or a different repayment plan.\nIf you're in this situation, consolidating or refinancing your loans with a different servicer or lender could simplify things. But if you'd prefer to avoid higher interest rates or fewer loan benefits, here are some ways to manage all of your loans:\n*   **Set up automatic payments.** Trying to keep track of all of your monthly payments manually can be a pain. While it's important to know your due dates to ensure you have enough money in your bank account to cover them, getting on an autopay plan can make your life a little easier. Also, note that you'll get a 0.25% interest rate reduction on direct federal loans if you sign up for autopay.\n*   **Keep a list of your servicers' contact information.** If you need to ask a question about your loans, make additional payments or submit a request, have the contact information for each of your servicers on hand, and make a note of which loans each company services so you don't accidentally leave any out.\n*   **Call before making extra payments.** Each loan servicer may be a little different in how they apply payments. So if you want to pay off your loans early or make additional principal-only payments, call first to make sure they know how to apply your payment and which loan you want to target. END
 TITLE: Who Services My Federal Student Loans? CONTENT: How Student Loans Impact Your Credit\n------------------------------------\nIf you have federal student loans, it's crucial to know who your servicer is, especially if you have more than one, because a misstep could damage your credit.\nMissing a payment for 30 days or more or defaulting on a loan could have a significant negative impact on your credit score. Simplifying things by consolidating or refinancing your loan can help, but it may not be necessary as long as you know exactly where all of your loans are.\nAs you work on paying down your student loans, monitor your credit regularly to ensure that your credit is in good shape. If you notice a dip in your credit score, check your credit report to get an idea of which areas you need to address to bring it back up.\nOver time, building your credit history through student loans and other forms of credit can help improve your financial situation and make it easier to gain access to affordable financing in the future when you need it. END
 TITLE: What Is a Subsidized Loan? CONTENT: Subsidized vs. Unsubsidized Loans\n---------------------------------\nBoth subsidized and unsubsidized loans are offered through the federal government, but there are some key differences between them.\n*   Subsidized loans are only available to undergraduate students, while unsubsidized loans are open to undergraduates, graduates and those seeking professional degrees.\n*   Subsidized loans require students to demonstrate financial need, while unsubsidized loans do not. Because subsidized loans are intended for students who need greater financial assistance, they come with additional financial perks.\n*   With subsidized loans, the federal government pays (or \"subsidizes\") interest that accrues while the student is enrolled in school at least half time, during the six-month grace period after the student leaves school and during loan deferment.\nUnsubsidized loans, on the other hand, begin accruing interest immediately. Interest that is not paid before the grace period or loan deferment period ends will be capitalized (added to the principal loan amount) and will then accrue additional interest. Private loans also begin to accrue interest immediately.\nThese two loans do have some things in common, though. Neither require a credit check, and the interest rate is the same on subsidized and unsubsidized loans for undergraduate students (unsubsidized loans have a higher interest rate for graduate or professional students). END
 TITLE: What Is a Subsidized Loan? CONTENT: Pros and Cons of Subsidized Loans\n---------------------------------\nSubsidized loans come with some great benefits:\n*   Because the federal government pays the interest during the periods noted above, subsidized loans will save you money.\n*   They offer flexible repayment options you won't find with private loans.\n*   You'll pay lower interest rates on these loans than on comparable private student loans.\nBut they also have some drawbacks you should be aware of:\n*   You're limited in how much you can borrow in subsidized loans each year and in total. Your school determines your maximum loan amount based on federal limits (see below), your financial need and your year in school. If you need more than the maximum amount, you can take out unsubsidized or private loans to cover the difference.\n*   They're only available for undergrads, so graduate students have to look elsewhere.\n*   Financial need must be demonstrated to qualify, so you may not be eligible if your parents' income (or your own, if you are not considered a dependent) is too high. END
 TITLE: What Is a Subsidized Loan? CONTENT: How Much Can I Borrow With a Subsidized Loan?\n---------------------------------------------\nThe amount you can borrow with a subsidized student loan is determined by your school, and the amount can't exceed your financial need. The amount you can borrow each year also depends on your year in school and your dependency status. The following chart shows the annual and aggregate limits for subsidized loans as determined by the U.S. Department of Education. END
 TITLE: What Is a Subsidized Loan? CONTENT: How to Apply for a Subsidized Student Loan\n------------------------------------------\nTo qualify for a subsidized student loan, the government requires you meet the following guidelines:\n*   Be a U.S. citizen, national or permanent resident\n*   Be enrolled in school at least half time\n*   Never have defaulted or owe a refund to any previous student loan or aid\n*   Stay in good academic standing\n*   Have financial need\nTo apply for a subsidized student loan, you'll first need to fill out the FAFSA. Once the federal government and your school review your application, you will receive an award letter from your school's financial aid office outlining the amount of aid you qualify for and whether you're eligible for a subsidized loan.\nIf you decide to accept the loan, you will sign a promissory note in which you agree to the loan's terms. First-time borrowers will also have to complete online student loan counseling that explains their financial obligations.\nYour college will apply the loan funds to your school account to cover education-related costs such as tuition, fees, and room and board. If any money is left over after that, it will be returned to you, with the stipulation that you must use it for education expenses. END
 TITLE: What Is a Subsidized Loan? CONTENT: Are There Fees for a Subsidized Loan?\n-------------------------------------\nFederal subsidized loans do come with some fees. You'll pay a loan fee based on a percentage of the loan amount, which is deducted from each payout. According to the most recent data, loans disbursed on or after October 1, 2019, and before October 1, 2020, had a loan fee of 1.059% (the same fee applies to both subsidized and unsubsidized loans).\nJust like with any loan, you'll also pay interest in exchange for borrowing money. The interest rate on subsidized loans disbursed on or after July 1, 2019, and before July 1, 2020, is 4.53%. END
 TITLE: What Is a Subsidized Loan? CONTENT: When Do I Start Paying Off Subsidized Loans?\n--------------------------------------------\nWith subsidized student loans, as long as you're in school at least half time, you don't owe anything on your loans.\nAfter you leave school, your loan servicer will contact you and let you know when your first payment is due and how to pay. It's best to start paying the loans back as soon as possible and pay more than the minimum if you can.\nIf you make minimum payments, it can take many years to be free of your loans. If you're able to contribute more, you'll be done with them sooner—and you can reduce the overall cost of the loan since you won't be paying interest as long. If you want to make a larger payment, let your loan servicer know you want that extra amount applied to the current month's payment so they don't inadvertently add it to the next month's payment.\nSome students aren't able to get by on subsidized loans alone and have to also take out unsubsidized federal loans or private loans. If you have multiple student loans, determine which have the largest balances and the highest interest rates. Anytime you are able to pay more than the minimum, put that extra money toward these more expensive loans since it will save you the most money over time.\nAlso, be aware that federal loans have several different repayment plans to choose from. While yours may come with one automatically, you can change plans for free at any time. Contact your loan servicer to find out which plan would work best for you or to change your plan. END
 TITLE: What Is Income-Based Repayment? CONTENT: How Does Income-Based Repayment Work?\n-------------------------------------\nAn income-based repayment plan, called IBR for short, reduces your monthly payment to 10% or 15% of your discretionary income and extends your repayment term to 20 or 25 years.\nThe lower payment amount and shorter term are reserved for new borrowers who took out their first loan on or after July 1, 2014. For borrowers who received loans before that, the 15% rate and 25-year term apply.\nThe U.S. Department of Education calculates your discretionary income by taking the difference between your annual income and 150% of the poverty guideline for your state of residence and family size. You'll need to recertify these details every year, which means your payment may increase as your income does, but it will never exceed the monthly payment you'd otherwise pay based on the 10-year standard repayment plan.\nIf you still have a balance left over after your repayment term under the plan ends, it'll be forgiven. However, the forgiven debt will be considered taxable income.\nIBR isn't the only student loan repayment plan the federal government offers, nor is it necessarily the best plan for your financial situation. It may be beneficial, however if you don't qualify for the Pay As You Earn (PAYE) plan, which offers a 10% payment and 20-year term.\nIt can also be worth considering if you don't expect your income to increase much over time, as that could make it more likely that you'll receive forgiveness for some of your balance after 20 or 25 years. END
 TITLE: What Is Income-Based Repayment? CONTENT: Who Is Eligible for Income-Based Repayment?\n-------------------------------------------\nOnly federal student loans are eligible for the Department of Education's income-driven repayment plans, and that includes IBR. However, it's one of two such plans that require you to show financial need to get approved—the other being the previously mentioned PAYE plan.\nMore specifically, you must show that your monthly payment under the IBR plan would be less than what you're currently paying on a standard repayment plan. In general, you'll meet this requirement if your student loan debt represents a significant portion of your annual income, or your debt is higher than your annual discretionary income.\nAdditionally, only certain loans are eligible for the program. That includes:\n*   Direct subsidized loans\n*   Direct unsubsidized loans\n*   Direct PLUS loans made to graduate or professional students\n*   Direct consolidation loans\n*   Subsidized federal Stafford loans\n*   Unsubsidized federal Stafford loans\n*   Federal Family Education (FFEL) PLUS loans\n*   FFEL consolidation loans\nIf you have Federal Perkins loans, you can access the program by consolidating them with a direct consolidation loan. However, federal loans made to parents do not qualify, even if they're consolidated with the direct or FFEL programs.\nPrivate student loans are also not eligible for the federal program. However, some private lenders may offer similar accommodations to borrowers looking to reduce their payments—the Rhode Island Student Loan Authority is one notable lender that offers an IBR plan. END
 TITLE: What Is Income-Based Repayment? CONTENT: How Do I Apply for Income-Based Repayment?\n------------------------------------------\nBefore you apply for an IBR plan, research the other income-driven repayment plans to make sure you choose the one that's the right fit for you. You may even want to call your loan servicer to get more information about your options.\nWhen you're ready to apply, fill out an income-driven repayment plan request form, which you can submit online or via a paper form. The form allows you to select the plan you want to apply for, but you can also leave it blank to allow your servicer to put you on the plan with the lowest monthly payment you can qualify for.\nNote that if you have more than one servicer for your federal loans, you'll need to submit a separate request form with each one.\nBecause you're considering IBR, you'll need to provide income documentation to help your servicer determine your eligibility. Depending on your situation, you'll need your tax return or an alternative form of documentation, such as a pay stub.\nYou'll also need your Federal Student Aid (FSA) ID—find it or create one on the FSA website—and some personal information, including your permanent address, email address and phone numbers.\nAfter you submit your request, it can take a few weeks for your servicer to process it. To speed up the process, apply online and submit all the required documentation as soon as possible. END
 TITLE: What Is Income-Based Repayment? CONTENT: How Much Will My Payments Be for Income-Based Repayment?\n--------------------------------------------------------\nIf you qualify for an IBR plan, your monthly payment will be determined by two things: your discretionary income and when you became a new borrower of federal loans.\nIf you were a new borrower before July 1, 2014, your payment would be 15% of your discretionary income. If you became a new borrower on or after that date, though, it'd be 10% of your discretionary income.\nYour discretionary income is the difference between your annual household income and 150% of the poverty guideline for your state and family size. To get an accurate estimate of what your payment will be, use the Department of Education's loan simulator tool.\nAlso, note that your payment will not remain the same for the remainder of your repayment term. Each year, you'll be required to recertify your income and family size with your loan servicer. Also, federal poverty guidelines can change from year to year. Each year when you recertify, your monthly payment will be recalculated based on the updated information.\nIf you neglect to recertify your income and family size, you'll remain on the IBR plan, but your monthly payment will revert to what you were paying on the original 10-year standard repayment plan until you provide your servicer with the necessary details. END
 TITLE: What Is Income-Based Repayment? CONTENT: Are There Downsides to the Student Loan Income-Based Repayment Plan?\n--------------------------------------------------------------------\nIBR can provide much-needed relief to federal student loan borrowers who are struggling to get by, and if your income doesn't increase much over time, you may even qualify to have a portion of your student loan debt forgiven. However, there are also some disadvantages to consider before you apply:\n*   **Longer debt term**: Instead of the standard 10-year repayment plan with federal loans, your repayment term will be 20 or 25 years, depending on when you first started borrowing federal loan money. If 10 years sounds like a long time to be in debt, the idea of doubling that time (or more) may not sound too appealing.\n*   **Interest**: Because your repayment term will be extended to up to 25 years, you'll end up paying more in interest than if you were to stay on the standard plan. Your payments may not even be enough to cover the accrued interest, which means your student loan balance may grow over time.\n*   **Taxable forgiveness**: While you may qualify to have a portion of your debt forgiven after your repayment term ends, that amount will be taxable as income. Depending on how much it is, you may end up with a sizable tax bill, which you'll need to plan for, so you don't end up in debt to the IRS.\n*   **Recertification requirement**: You'll need to remember to recertify your income and household size every year to continue to have your payments based on your income. If you forget, your payments will go back to what they were before until you provide the necessary information. END
 TITLE: What Is Income-Based Repayment? CONTENT: Alternatives to Income-Based Repayment\n--------------------------------------\nThe federal government offers four income-driven repayment plans in total, so it's important to consider all of them to make sure you find the right fit.\nThe other available plans include:\n*   **Pay As You Earn (PAYE)**: With this plan, your payment will be 10% of your discretionary income and will never be higher than your payment on the standard 10-year plan. Your repayment term will be extended to 20 years. Only borrowers who provide evidence of financial need are eligible for this plan.\n*   **Revised Pay As You Earn (REPAYE)**: Under this plan, your payment will be 10% of your discretionary income, and your repayment term will be 20 years for undergraduate loans and 25 years for graduate and professional loans. There's no cap on what your payment can be, so it may end up higher than your current one. Anyone with an eligible loan can get on a REPAYE plan.\n*   **Income-Contingent Repayment (ICR)**: This plan is the only one that's available to all federal loan borrowers, including parents. Your repayment term will be 25 years, and your monthly payment will be the lesser of 20% of your discretionary income (this time based on 100% of the federal poverty guideline), or what you would pay on a 12-year repayment term, adjusted according to your income.\nConsider consulting with your loan servicer to help determine which plan is the right fit for you and your situation. END
 TITLE: What Is Income-Based Repayment? CONTENT: How Does Income-Based Repayment Affect Credit Scores?\n-----------------------------------------------------\nGetting on an IBR plan won't directly impact your credit score because you aren't changing your total loan balance or opening a new credit account. However, lenders consider more than just your credit score when you apply for credit. Here are a couple of potential consequences to watch out for:\n*   **Debt-to-income ratio**: Lowering your monthly payment can help reduce your monthly debt obligations, which could make it easier to qualify to borrow more if you're buying a house.\n*   **Debt term**: If you're applying for new credit, lenders will consider how much you owe on existing debts. With an IBR plan, you'll have a balance for up to 25 years instead of 10, which means it could affect your chances of getting new credit for much longer.\nTo make sure you're using your student loan debt to improve your credit, pay your bills on time every month, preferably with automatic payments. Also, once you're financially able to pay more, consider adding extra payments, even if you don't need to. Not only will this help you save money on interest, but it'll also get you to debt-free status more quickly. END
 TITLE: What Is Income-Based Repayment? CONTENT: Stay on Top of Your Credit to Improve Your Long-Term Financial Standing\n-----------------------------------------------------------------------\nWhile you may be struggling now and need an income-driven repayment plan, it's important to take steps to improve your financial well-being over time. One way to do that is to establish and maintain a good credit history. With great credit, you can score lower interest rates on loans and credit cards, save money on car and homeowners insurance, and more.\nKeep track of your credit score to have an idea of where you stand and where you can put your focus to make improvements. Experian's credit monitoring service not only gives you free access to your FICO® Score☉ powered by Experian data but also helps you monitor your spending and provides real-time alerts about certain changes to your Experian credit report.\nAs you take steps to build your credit history and maintain a good credit score, you'll have a better chance of achieving your financial goals. END
 TITLE: How Much Should I Get in Student Loans? CONTENT: Calculate Any Income You Will Have While in School\n--------------------------------------------------\nWhile previous generations may have been able to put themselves through school by working a part-time job, this is typically no longer enough to fully cover the costs of college. But part-time work is a useful supplement that can make a big difference in how much you'll need to take out in student loans.\nBefore you can calculate how much to borrow, estimate how much income you'll have while in school. The more you earn, the less you'll need to borrow, so if you plan to work while in school, try to put a number on how much you'll earn each month. Use this number later when you're making your budget.\nDid family set aside money for your education in a college savings plan? If so, factor that in as well. Additionally, consider whether you will participate in a work-study program or receive scholarship money, as these forms of income can also reduce your need to borrow student loans. Add it all up to come up with an estimate for your income. Depending on your circumstances, you may want to look at it either monthly or by semester. END
 TITLE: How Much Should I Get in Student Loans? CONTENT: Create a Budget\n---------------\nNow that you know how much money you'll likely have to help pay for school, it's time to put together a budget. In simple terms, a budget helps you track how much money you have coming in and how much you have going out. There are many ways to make a budget, from using an Excel spreadsheet to online apps that can partly automate the process.\nTo finish determining how much you need in student loans, you'll have to figure out the expense side of your budget. Your university should provide estimates on costs, which you can use to calculate how much you'll likely spend on tuition, books and housing.\nWhen adding up your expenses, you will also need to factor in additional monthly costs, such as:\n*   Food, if not included in your on-campus housing costs\n*   Rent, which may be included in your education costs if you plan to on campus (be sure not to double-count)\n*   Utilities, if your dorm or housing situation requires you to pay for water, electricity, internet and cable\n*   Transportation, such as car payments, a campus parking permit, gas or public transportation passes\n*   Entertainment, including the occasional night out and things like streaming services END
 TITLE: How Much Should I Get in Student Loans? CONTENT: Figure Out How Much You'll Need in Loans\n----------------------------------------\nIf you followed the first two steps, you now have an estimate for how much income you'll bring in each month or semester, in addition to how much you'll have to spend each month for both your education and living. Knowing the difference between the two numbers will help give you a sense of how much you'll need to borrow in student loans. The amount can vary greatly depending on whether you plan to attend a public or private school.\nAs you determine how much you need in student loans, keep in mind that you should aim to only borrow what you actually need to get through school. Unlike scholarships or grants, loans have to be repaid, and with interest. This can be a challenge for those just entering the workforce, so don't use your loans to live beyond your means, and borrow as little as you can.\nOnce you've got the amount you think you'll need dialed in, it's time to start thinking about what types of loans you'll want to borrow and what types are available to you. There are two broad types of student loans: Federal loans from the government and private loans from financial institutions like banks. There are major differences between the two, including in terms of how much it will cost to borrow. Before committing to a loan, understand which type will get you the best deal and end up costing you less in fees and interest charges. END
 TITLE: How Much Should I Get in Student Loans? CONTENT: Start Building or Improving Your Credit Score\n---------------------------------------------\nWhile federal loans don't have any credit requirements, private lenders do consider creditworthiness in the borrowing process. If you anticipate needing private loans but haven't yet established credit, you may want to speak with your parents or guardians to find out their credit status and see if they're willing to cosign on a loan for you. If not, start making efforts to build your credit. You can do this by becoming an authorized user on a friend or relative's credit card or getting your own secured credit card.\nAdditionally, whether federal or private, all student loans impact your credit. But whether they hurt or help your credit depends on your behaviors. If you're trying to establish credit, having a student loan on your credit report can help since it adds to your credit mix and gives you a way to create a history of regular, on-time payments.\nHowever, making late payments or missing any can damage your credit. For this reason, prioritize making on-time payments to help establish strong credit. If, in the future, you think you'll miss a payment, reach out to your lender before your due date to see if special accommodations can be made including forbearance and deferment. END
 TITLE: How Much Should I Get in Student Loans? CONTENT: Get Familiar With Your Credit\n-----------------------------\nNot sure where your credit currently stands? Monitor your credit report and scores for free with Experian, and check back to see how your efforts to establish credit pay off over time. Having a strong credit report will make life easier after school, especially if you need to obtain an auto loan or credit card. Plus, landlords and employers typically check credit reports to ensure financial responsibility, so your actions now can make a big difference in your future. END
 TITLE: How to Get More Financial Aid After COVID-19 CONTENT: What to Do if You've Already Filled Out Financial Aid Applications\n------------------------------------------------------------------\nThe FAFSA helps your school's financial aid office determine how much federal aid you need in the form of grants, work-study and student loans. If you're also looking for non-federal financial aid, the CSS profile is used by more than 400 colleges and scholarship programs to provide more assistance.\nThe deadline for the FAFSA isn't until June 30, but you may have already submitted yours. The deadline for your CSS profile can vary between January 1 and March 31, depending on your school.\nHow much financial aid you qualify for depends largely on your expected family contribution (EFC) calculated by the FAFSA. If that's changed dramatically since you filled out both applications due to COVID-19, you may be wondering how to get the increased financial aid you need for the upcoming school year.\nFortunately, you may have some options to inform your school about the changes that have happened in your life, such as you or a parent being laid off or furloughed, or losing wages due to a death or illness.\n*   **FAFSA**: In general, financial information can't be updated directly on the FAFSA because it must be accurate as of the day you first signed the form. However, if your family's financial status has changed, you can reach out to your school's financial aid office to explain the situation.\n*   **CSS profile**: Updating your CSS profile with your family's new financial situation may be as easy as printing out a copy of the profile you submitted, handwriting the changes directly on the form, then uploading it to your account or submitting it to your college's financial aid office via fax or mail. However, processes can vary by school, so call your financial aid office to find out what you need to do.\nIn both scenarios, you may need to provide documentation to show how your EFC has changed since you first submitted the forms. Ask the representative from your school to find out what you need.\nIf you've already received your award letter for next year, you can file an appeal with your school's financial aid office. END
 TITLE: How to Get More Financial Aid After COVID-19 CONTENT: What to Do if You Haven't Filled Out the FAFSA Yet\n--------------------------------------------------\nWhen filling out the FAFSA for the 2021-22 school year, you'll be asked to provide income information and tax returns from 2019.\nIf that data doesn't reflect your current situation, however, the U.S. Department of Education recommends you contact your school's financial aid office after you submit your FAFSA form to explain your current situation and have them use it to inform their decision. END
 TITLE: How to Get More Financial Aid After COVID-19 CONTENT: How to Request More Financial Aid for the Current School Year\n-------------------------------------------------------------\nThe FAFSA and CSS profile can help your school determine how much financial aid you need for the upcoming school year. But if you need more assistance now, you may have some options.\nMost important, if you're currently in school and your professors have moved to an online format, it's essential to continue to participate in classes and coursework to remain eligible for financial aid during the current school year and in the future. Here's what you can do:\n*   **Request emergency federal aid.** Federal relief programs have provided more than $6 billion to colleges and universities, which they can give as emergency cash grants to students whose lives and finances have been disrupted by the COVID-19 crisis. Call your school's financial aid office to see if you qualify.\n*   **Ask to keep work-study income.** If you're a current recipient of the work-study program, you may no longer be able to work your scheduled hours because of coronavirus-related interruptions. However, your school still has the option to find other ways to allow you to work your scheduled hours or simply pay you for the time you'd normally work. Contact your work-study office to find out what measures it can take to allow you to maintain your income.\n*   **Ask for a refund.** If your school has canceled classes or told you to leave your on-campus dorm room, you may be able to request a full or partial refund of tuition or room and board charges. Just don't expect to get your money back if classes have moved online, even if you find it less effective. END
 TITLE: How to Get More Financial Aid After COVID-19 CONTENT: Do I Need to Borrow More Money?\n-------------------------------\nScholarships, grants and work-study programs are all forms of financial aid, and depending on the changes to your FAFSA or CSS profile, you may qualify for more aid in these areas than you normally would.\nHowever, the increases may not be enough to bridge the gap between your costs for next year and what you can afford. If that's the case, you may need to borrow money in the form of student loans.\nBefore you do so, make sure you've exhausted all other options. Research scholarship opportunities with your school, and visit websites like Scholarships.com and Fastweb to see if you qualify for scholarships and grants from private organizations.\nIf you still need money, focus on federal student loans first. The U.S. Department of Education offers subsidized loans to students with financial need. The federal government pays your interest on these loans while you're enrolled in school at least half-time, during the six-month grace period after you leave school or fall below half-time enrollment, and during deferment periods in the future.\nEven if you don't qualify for enough subsidized loans to cover your remaining expenses, unsubsidized federal loans don't require a credit check and may provide lower interest rates than what a college student could get with private student loans.\nBorrowing money for college isn't ideal, but it can make it possible for you to stay in school. END
 TITLE: How to Get More Financial Aid After COVID-19 CONTENT: For Any Questions, Contact Your School's Financial Aid Office\n-------------------------------------------------------------\nMany financial aid decisions are made by your school, not the federal government. So while there's a wealth of information on the U.S. Department of Education's website, call your college's financial aid office if you have questions about your specific situation.\nWhile a global pandemic creates a lot of uncertainty and well-founded fear, universities have been empowered to make decisions and provide assistance to students who really need it to help them remain in school. END
 TITLE: What Is a Student Loan Grace Period? CONTENT: Subsidized vs. Unsubsidized Student Loans\n-----------------------------------------\nThe U.S. government offers federal student loans to college students and their parents or legal guardians.\nFederal direct student loans are either subsidized or unsubsidized. With subsidized direct loans, the federal government picks up the interest while you're enrolled in school at least part time, in a period of deferment or in a grace period. Unsubsidized direct loans, like private student loans, begin accruing interest as soon as you take out the loan.\nSubsidized direct loans are available only to undergraduate students, while unsubsidized direct loans are available to undergraduates and graduate or professional degree students.\nParent PLUS loans are another type of federal unsubsidized loan and, like direct unsubsidized loans, they begin accruing interest immediately. END
 TITLE: What Is a Student Loan Grace Period? CONTENT: Is There a Grace Period for Federal Student Loans?\n--------------------------------------------------\nWhether there is a grace period on your federal student loan depends on the type of loan.\n*   **Direct loans: Six-month grace period.** These loans may be subsidized or unsubsidized, but the grace period is the same for both. Many students carry a combination of subsidized and unsubsidized direct loans.\n*   **Parent PLUS loans: No grace period.** PLUS loan funds go to parents and legal guardians to help finance their kids' college education. PLUS loans are always unsubsidized, so interest begins accruing right away. Although technically there is no grace period, the first payment is due within 60 days of the funds being disbursed. END
 TITLE: What Is a Student Loan Grace Period? CONTENT: Do Private Student Loans Have a Grace Period?\n---------------------------------------------\nMany students supplement their federal direct loans with private student loans funded by credit unions, banks (traditional and online) or other financial institutions. Because they are not subsidized, private loans begin accruing interest as soon as the funds are disbursed.\nEach private lender is free to determine its own rules regarding grace periods. Depending on the lender and the specific loan, you may have a grace period of six months or nine months before you start paying the loan—or no grace period at all.\nGrace periods and all of a loan's terms appear in the initial loan agreement. If you're unclear about when you need to send your first payment and don't have the paperwork anymore, call the lender immediately and ask. END
 TITLE: What Is a Student Loan Grace Period? CONTENT: Do You Pay Interest During the Grace Period?\n--------------------------------------------\nYou can wait to make your first student loan payment when it's due, but that's not always the best choice. If you only have subsidized loans, there's no financial harm in letting the grace period run its course because interest isn't increasing your debt. If you borrowed $20,000 for your education with a subsidized loan, that's exactly the amount you'll begin paying off when the grace period ends.\nOn the other hand, if you have unsubsidized loans, interest will accrue during the designated grace period. You can wait until the grace period ends to begin paying on your loan, but you should try to pay off at least the accrued interest before that.\nWhy? Because it will stop the interest on your loan from capitalizing, which is when the interest that has accrued while you were in school and during the grace period gets added to your loan principal—costing you much more over the loan term. One of the easiest ways to pay your interest before the loan capitalizes is to send in monthly payments that cover the interest. Contact your loan servicer and make the arrangements. END
 TITLE: What Is a Student Loan Grace Period? CONTENT: How to Repay Your Student Loan\n------------------------------\nWhen you're getting ready to start paying off your student loan, keep these things in mind:\n*   **Prepare for monthly loan payments.** Whether or not you jumpstarted the repayment process by sending in interest payments, once the grace period is up it's time to make your full loan payments. Review your budget and make room for your new monthly obligation.\n*   **Know the payoff term.** Your student loan will have a fixed payoff term. For example, the standard term for direct loans and PLUS loans is 10 years. Terms for private loans are typically five to 20 years.\n*   **Use extra funds wisely.** If you carry a mix of subsidized and unsubsidized loans and have some extra money to kick in, send it to your unsubsidized loan with the highest interest rate first. There's no reason to stretch debt out if you don't have to.\n*   **Defer or forbear if necessary.** If the grace period clock on subsidized loans is ticking too fast and you don't have the money to start paying, consider a deferment. As long as you qualify, it allows you to hit the payment snooze button for up to three years, without interest being added. Forbearances are also a way to delay payments after a grace period is up. They're easier to qualify for, but interest accrues whether your loans are subsidized or not. Be aware, though, that deferments and forbearances are not available on PLUS loans or private student loans.\n*   **Communicate problems and ask for assistance.** If you can't meet a payment's due date, contact the lender right away. There are alternative payment plans for direct loans. Even if you have the other types of student loans, lenders want to hear from you before you start to fall behind. Together you may be able to develop a feasible plan to offset credit damage.\nA student loan grace period offers a helpful way for you to prepare for your upcoming loan payments. If possible, pay off your interest before the loan capitalizes, and then make all loan payments on time.\nConsider getting a free copy of your [Experian credit report](;bcd=ad_c_sem_427_393142368859&k_id=_k_Cj0KCQiAmsrxBRDaARIsANyiD1o-JnXN1ud9RsTQnMtqw9Xtln7v0-oIoITktjDBxvVRhKeJouj2O0QaAvKlEALw_wcB_k_&k_kw=aud-531599684562:kwd-27441653&k_mt=e&pc=sem_exp_google&cc=sem_exp_google_ad_7708912303_85065367841_393142368859_aud-531599684562:kwd-27441653_e_1t1__k_Cj0KCQiAmsrxBRDaARIsANyiD1o-JnXN1ud9RsTQnMtqw9Xtln7v0-oIoITktjDBxvVRhKeJouj2O0QaAvKlEALw_wcB_k_&ref=boostfreebrand&awsearchcpc=1&gclid=Cj0KCQiAmsrxBRDaARIsANyiD1o-JnXN1ud9RsTQnMtqw9Xtln7v0-oIoITktjDBxvVRhKeJouj2O0QaAvKlEALw_wcB) to ensure your loan payments are being reported. Student loans may be the first loans you get—and managed properly, they can help build a long and positive credit history. END
 TITLE: Can I Opt Out of Preapproved Credit Offers? CONTENT: Under the Fair Credit Reporting Act (FCRA), the consumer credit reporting agencies (Experian, TransUnion and Equifax) are permitted to include your name on lists used by creditors or insurers to make firm offers of credit or insurance. Credit bureaus can sort through their databases and create prescreened lists based on a company's specifications, such as a geographic area and credit score range. The company can then send out a preapproved firm offer of credit to people who pass the prescreening process.\nUsing prescreened lists helps companies avoid sending offers to consumers who may not need, want or qualify for a new account. Similarly, these lists help make sure you don't receive irrelevant offers. Getting a firm offer of credit also means that if you decide to apply, you'll likely get approved unless your credit or financial situation changed for the worse since you were selected. END
 TITLE: Can I Opt Out of Preapproved Credit Offers? CONTENT: How to Opt Out of Firm Credit Offers\n------------------------------------\nThe FCRA also provides consumers with the right to opt out of these offers. You can opt out of prescreened lists by calling 888-5-OPTOUT (888-567-8688) or submitting the request online at OptOutPrescreen.com. You'll need to share some personal information, such as your name, Social Security number and date of birth to submit your request.\nYou can opt out of prescreened offers for five years using the phone or online option. If you want to request a permanent opt-out, you'll need to fill out and mail in a form, which you can find online or request over the phone at OptOutPrescreen.com.\nThe OptOutPrescreen line and website are run by Experian, Equifax, TransUnion and Innovis—four major consumer credit bureaus—and you only need to submit the request once to be removed from all four bureaus' prescreening lists.\nExperian encourages consumers to make informed decisions about credit and insurance offers. Firm offers can provide opportunities to take advantage of offers that might not be available to the general public, and can provide more product choices for better comparison shopping. END
 TITLE: Can I Opt Out of Preapproved Credit Offers? CONTENT: How to Opt Out of Other Direct Marketing Offers\n-----------------------------------------------\nKeep in mind, however, that opting out of prescreened credit offers won't keep you off other mailing lists. Companies can buy or rent lists of potential customers from other companies, including marketing companies that specialize in list-building, and target their existing or past customers with new offers.\nYou can opt out of some of these offers if you:\n*   Visit DMAchoice.org to create an account with the Direct Marketing Association (DMA) and decide which mail you want to receive from DMA members. There's a $2 processing fee, which will cover you for 10 years.\n*   Visit the DMA website and update your email preferences to reduce email marketing.\n*   Request to be taken off non-DMA mailing and marketing lists, such as those run by Epsilon, RetailMeNot and Valpak.\n*   Add your phone number to the National Do Not Call Registry for free.\n*   Send a request by mail to the DMA Mail Preference Service, P.O. Box 643, Carmel, NY 10512.\nTaking these steps won't necessarily stop all marketing mail, email and phone calls, but it can help reduce the volume. In some cases, you may need to reach out to each company or organization individually and ask to be taken off of their marketing lists. END
 TITLE: Can I Opt Out of Preapproved Credit Offers? CONTENT: How to Opt In After Opting Out\n------------------------------\nIf you've opted out of prescreened offers, you can opt back in by calling 888-5-OPTOUT (888-567-8688) or visiting OptOutPrescreen.com and choosing the opt-in option.\nMany consumers prefer receiving prescreened credit and insurance offers, as they may be targeted for an offer that's not available to the general public. Preapproval offers can also help you compare your current credit accounts and insurance plans to the offers and see if you could save money by switching. END
 TITLE: Can I Opt Out of Preapproved Credit Offers? CONTENT: Continue to Check Your Offers\n-----------------------------\nWhether or not you opt out of prescreened offers, you may be able to apply for preapproval directly with a creditor and see which credits cards and offers you'll likely qualify for. You can also use Experian's CreditMatchTM to get matched with credit card and loan offers without impacting your credit score. END
 TITLE: Loan Forbearance: How to Know if It’s Right For You CONTENT: What Does Student Loan Forbearance Mean?\n----------------------------------------\nIf you have federal student loans, such as direct loans, Federal Family Education Loans (FFEL) and Perkins loans that are in good standing, you may qualify for a forbearance. If you do, your payments may be lowered or suspended for a specified period of time. Interest, however, continues to accrue.\nThere are two broad types of loan forbearance:\n*   **General**: Qualifying reasons for acceptance include financial difficulties, overwhelming medical bills, unemployment and changes in income. As long as you meet the criteria, you may have up to 12 months to pay less than the amount you normally would or even nothing at all. If your circumstances don't improve after that time you can request another forbearance, but you can't delay payments forever. Forbearances on Perkins loans are restricted to three cumulative years, and servicers for direct loans and FFEL may also impose limits.\n*   **Mandatory**: There are circumstances when the loan servicer must accept your forbearance request. That happens when:\n    *   Your student loan payments exceed 20% of your monthly gross income.\n    *   You are enrolled in a medical or dental internship or residency program.\n    *   You are serving in AmeriCorps or similar volunteer-based program.\n    *   You are in a teaching position that qualifies you for student loan forgiveness.\n    *   You qualify for the Department of Defense's loan repayment program or are in the National Guard. END
 TITLE: Loan Forbearance: How to Know if It’s Right For You CONTENT: What's the Difference Between Deferment and Forbearance?\n--------------------------------------------------------\nThe other way to postpone student loan payments is with a deferment. It works much the same way as a forbearance, but the biggest difference concerns interest.\nIf the loans are subsidized, the Education Department picks up the tab for the interest that accrues while you're enrolled in school at least half-time, for the grace period after leaving school and during a period of deferment.\nIf any portion of your student loans is subsidized, it's best to see if you can get a deferment before pursuing a forbearance.\nDeferments for economic hardship can be tough to get, though. To qualify, you'll have to be receiving government assistance or be unemployed. If you're working, you'll need to demonstrate that your monthly income is less than 150% of the poverty guideline for your family's size and the state you live in. The rules for a forbearance aren't nearly as stringent. END
 TITLE: Loan Forbearance: How to Know if It’s Right For You CONTENT: How Does Forbearance Affect Credit?\n-----------------------------------\nIn addition to providing a much-needed payment reduction or postponement, a forbearance can protect your credit rating. Your student loans continue to appear on your credit report, but would stay in positive standing.\nWhile putting a loan in forbearance can prevent the extreme damage that late payments have on a credit score, it won't have any positive effect on your score because you aren't actively making on-time payments. For both your FICO® Score☉ and VantageScore®, payment history is the most important scoring factor. If a forbearance is the only way to make sure your credit report is clear of delinquencies, it can be a prudent decision. END
 TITLE: Loan Forbearance: How to Know if It’s Right For You CONTENT: Is Forbearance the Right Choice for You?\n----------------------------------------\nAlthough a forbearance has many merits, consider whether you really need one before taking that step. Remember, it's a temporary solution that's only appropriate for a short-term financial crisis. Because interest continues to accrue during forbearance, putting payments on ice will cause debt to grow rather than diminish. If you just need a break for a few months, the extra fees may not be so bad, but if you take a whole year off, it can cost a hefty sum. A 12-month forbearance will add $1,575 to the balance of a $35,000 student loan debt with a 4.5% interest rate, and increase the loan's monthly payment by $17.\nAnalyze your financial circumstances to determine if you can manage the payments as normal and avoid a forbearance:\n*   **Reduce expenses.** Review your budget carefully to see if there are any bills you can trim or eliminate that will make up for the student loan payment. If you can, make the changes and route the savings to your loan.\n*   **Increase income.** If you're already living close to the bone, explore ways you can realistically augment your income. You may be able to secure a part-time job, babysit, drive for a ride-hailing service or walk dogs. Make a goal to earn at least enough every month to pay your loan as normal.\n*   **Sell unnecessary assets.** Many people have valuable items around the home, garage or yard that they don't need or use. If you do, sell them and parcel out the proceeds to your loan on a monthly basis. END
 TITLE: Loan Forbearance: How to Know if It’s Right For You CONTENT: What Are the Alternatives to Student Loan Forbearance?\n------------------------------------------------------\nAfter exploring ways to free up money or add to your income, you may still come up short on funds. In that case, contact your student loan servicer and ask for help. They may work with you independently to let you pay less or nothing at all for a few months, without dinging your credit report. They may even shift you to an alternative payment plan. Keep in mind, they're not likely to do much to help you if your loans are already delinquent or in default.\nThe Education Department recognizes that a 10-year standard payoff time frame doesn't work for everyone. Thankfully there are other plans you can use to handle your student loans, and their payments can be far more affordable. For example:\n*   **Graduated**: Plans are still arranged for 10 years, but the payments start off small and then increase over time.\n*   **Extended**: You may have up to 25 years to send very small payments, which may be either fixed or graduated.\n*   **Income-driven**: These plans come in several varieties but all take into consideration the amount of money you make, your expenses, your family size and other financial factors. As your circumstances change, so, too, will your payments.\nYou can learn more about these plans and apply for the one that's right for you via StudentLoans.gov.\nLoan forgiveness is yet another way to deal with expensive student loans. If you use a long-term income-driven payment plan and have a balance remaining at the end of 20 or 25 years, that portion of what you owe may be forgiven. You may also be able to have your loans forgiven with the Public Service Loan Forgiveness program. To be eligible, you'd need to work for a government or a qualified nonprofit for at least 10 years. END
 TITLE: Loan Forbearance: How to Know if It’s Right For You CONTENT: Bottom Line: Consider Your Options\n----------------------------------\nAfter weighing all of your options for resolution, you may find that a student loan forbearance really is the best choice. If you go in that direction, use the months you have without the high payment wisely. Make changes to your financial affairs so you can get back to regular payments quickly. END
 TITLE: Qualifying for Student Loans: What You Need to Know CONTENT: Who Qualifies for Federal Student Loans?\n----------------------------------------\nThe government offers various types of federal student loans, each with different rules and requirements. Most don't require a credit check or cosigner. However, some are only available to students who can demonstrate financial need—in other words, they don't have another way to pay for college.\nTo qualify for a federal student loan, you must meet certain eligibility criteria, such as:\n*   You are a U.S. citizen or eligible non-citizen\n*   You have a valid Social Security number (with a few rare exceptions)\n*   You're enrolled or have been accepted as a regular student in an eligible degree or certificate program and are qualified to obtain that education (by receiving a high school diploma, GED or other allowed high school completion verification)\n*   You're making satisfactory academic progress\n*   You're registered with Selective Service if you're a male ages 18 to 25\n*   You're enrolled at least half time (for direct loans)\nThe interest rates on federal loans are fixed, and they're typically lower than you'll find with private loans. Another benefit of federal student loans is that you don't have to start repaying them until after you graduate. Some federal loans are subsidized, meaning the government pays the loan's interest while you're still in school. END
 TITLE: Qualifying for Student Loans: What You Need to Know CONTENT: Types of Federal Student Loans\n------------------------------\nFederal student loans come in several different flavors. Here are some of the most common types you'll encounter:\n*   **Subsidized**: These loans are for undergraduate students who demonstrate financial need, and depending on a few factors, the amount you can borrow ranges from $3,500 to $5,500 annually. Currently, the interest rate is a fixed 5.05%, though it can vary based on the disbursement date. Subsidized loans don't start accruing interest until after you leave school.\n*   **Unsubsidized**: These loans can be used for undergraduate, graduate and professional school, and they're not based on financial need. Unlike subsidized loans, these do start accruing interest while you're still in school. For undergraduate students, the amount you can borrow also ranges from $5,500 to $12,500 per year, though graduate and professional students can borrow up to $20,500 annually. The interest rate is currently 5.05% for undergraduate programs and 6.6% for graduate or professional school.\n*   **Parent PLUS**: These loans can either be used by graduate or professional students, or the parents of dependent undergrads, for any education expenses not covered by other means of financial aid. While you don't need to show financial need, you do have to undergo a credit check. The interest rate for PLUS loans is currently 7.6%. END
 TITLE: Qualifying for Student Loans: What You Need to Know CONTENT: Taking Out a Federal Student Loan\n---------------------------------\nTo apply for any aid, you have to fill out the Free Application for Federal Student Aid, also known as the FAFSA. By filling it out, you can also potentially qualify for other forms of federal, state and school financial aid. When you fill it out, you'll list the schools you're planning on applying to (or attending), and you must give information about your family's taxes and financial situation.\nOnce your FAFSA is processed, if you've been accepted to any of the schools you listed, those schools will then calculate your financial aid options. They'll send you an aid offer, sometimes referred to as an award letter, which will explain how much and what types of aid you're eligible for. In addition to federal loan options, you might also be offered other forms of aid, such as a work-study program or grants.\nThe timing is up to the school; some send out these letters as soon as the winter the year before you start school, while others don't notify until right before the school year begins.\nIf you receive an aid offer including a federal student loan and you want to accept it, you'll just follow the instructions in the letter. It might require filling out an online form, or you might have to mail it back. Then, to officially accept the loan, you'll have to sign a promissory note agreeing to your loan's terms and conditions. Some types of loans also require you to take entrance counseling.\nThe timing of when your loan is disbursed is up to your school, so contact your school's financial aid office for specifics, but there are some basic timing rules that can give you a sense of what to expect. END
 TITLE: Qualifying for Student Loans: What You Need to Know CONTENT: Private Student Loans\n---------------------\nIf you can't qualify for a federal loan or you need more than one can provide, you also have the option to take out a private student loan. However, there are some downsides.\nBecause federal loans are given out by the government, their terms and conditions are strictly regulated by law. For example, their interest rates are always fixed. Private loans are typically made by financial institutions like banks or credit unions, and the lender sets the terms. Because of that, interest rates tend to be higher and might be variable, and you probably won't get the benefits that come with some federal loans, like loan forgiveness programs.\nAdditionally, the only type of federal student loan that requires a credit check is a PLUS loan, but private student loans usually require an established credit history. If you don't have established credit yourself, you'll probably need a parent or other adult with a solid credit history to serve as your cosigner. END
 TITLE: Qualifying for Student Loans: What You Need to Know CONTENT: Understanding the Impact of Student Loans on Your Credit\n--------------------------------------------------------\nIt's important to know that taking out student loans does have a major impact on your credit, so you should only use them if you know you can repay them. Just like any other form of debt, your student loans will go on your credit report. The amount you've borrowed and your repayment history factor into your credit scores, even if your loans are deferred. This means if you apply for a credit card or another form of debt, lenders will consider your loans and your ability to repay them when deciding whether to extend you more credit.\nIf you miss payments or default on your loans, it will negatively impact your credit scores, which can make it harder to be approved for other credit in the future.\nThe good news is, student loans can also help you build credit. Paying your loan bills on time every month will show lenders you can handle credit responsibly, which could help you secure loans or credit cards in the future.\nIf your family doesn't have enough money to pay for college and scholarships aren't in the cards, student loans can be a great way to pay for your education. Just make sure you fully understand the requirements and terms of each loan, and be certain you can repay the loans since failing to do so can harm your credit. END
 TITLE: Is My Rental History on My Credit Report? CONTENT: What Information Is Included in a Credit Report?\n------------------------------------------------\nBecause landlords and property management companies aren't considered creditors, they do not automatically report your payment history to the three major consumer credit reporting bureaus—Experian, TransUnion and Equifax. Nor will they report evictions, bounced checks, broken leases or property damage. You might, however, end up with a collection account on your credit report if you leave behind unpaid debt after you move out.\nMost of the information that appears on consumer credit reports comes from lenders, banks, credit unions and, in some cases, the courts. These entities regularly furnish the three credit reporting bureaus with data regarding your credit application and usage activity. Each credit report has four sections:\n*   **Personal information:** Your name, birth date, current and past home addresses, phone numbers and employers you've listed on credit applications will be here.\n*   **Accounts:** This lists your tradelines, such as credit cards, loans, lines of credit and collection accounts. It will include partial account numbers, last-reported balances, payment history and account status (open, closed, etc.).\n*   **Public records:** If you've filed for bankruptcy, details about it will appear in this section.\n*   **Inquiries:** If a company requests your credit report for business purposes or if you check your own, a soft inquiry will appear. When you apply for credit, such as a loan or credit card, it will be noted as a hard inquiry. Both types of inquiries vanish after two years and only hard inquiries can affect your credit score.\nIn 2010, Experian became the first credit reporting bureau to include on-time rental payment data on its credit reports via Experian RentBureau. Since a pattern of timely rent payments can be a predictor of positive credit use in the future, and it can greatly benefit those looking to build their credit history and gain access to things like credit cards and loans. END
 TITLE: Is My Rental History on My Credit Report? CONTENT: How to Get Your Rental Payments on Your Credit Reports\n------------------------------------------------------\nSince landlord or property management companies don't usually supply information to the credit bureaus on their own, you'll need to take action if you'd like to make it happen.\n*   **Contact your landlord or property management company**. Ask if they are willing and able to report your rental payment history directly to Experian RentBureau. If they agree, your lease will appear in the \"accounts\" section of your Experian report as one of your tradelines. It will list the date the lease started, your monthly payment amount and your payment history for the past 25 months. Refer the person or company you deal with to Experian RentBureau.\n*   **Enroll in a third-party service.** Even if your landlord or property management company doesn't participate directly with Experian RentBureau, you can sign up with a fee-based rent payment service that reports to the credit bureaus upon request. Companies such as RentTrack, PayYourRent, eRentPayment, PayLease, Cozy and ClearNow collect and disburse rent payments, and give you the option to opt in for Experian RentBureau.\nAnother key advantage of adding rental payments to your credit reports is that it allows you to build or improve a credit score without having to apply for a new credit product. This could be a wise course of action if you're avoiding credit products in an effort to steer clear of debt. All you would need to do is manage your rent as normal by sending your payments when you should. END
 TITLE: Is My Rental History on My Credit Report? CONTENT: Does Paying Rent Improve Your Credit Score?\n-------------------------------------------\nAlthough landlords and property management companies aren't required to report payments to the credit bureaus, a perfect payment pattern is still something to strive for. Not only will that information be appealing to anyone reviewing your credit report, adding a well-managed lease to your reports can cause your credit scores to rise.\nPayment history is the weightiest scoring factor in both the FICO® Score☉ and VantageScore® models, so the more evidence that you have been paying your bills on time, the better. Bear in mind that only the newest versions of the FICO® Score and VantageScore® models consider rental data, and some lenders still use older versions.\nHowever, for the most current credit scoring systems that do take rental history into account, your on-time rental payments can give your scores a lift, especially if your credit history is young or you've had some credit problems in the past. According to Experian's Credit for Renting study, 75% of study participants who were scoreable before rental data was included on their credit files found that adding rental history increased their credit score. On average, those who saw an increase experienced a VantageScore 3.0 increase of 29 points. END
 TITLE: Is My Rental History on My Credit Report? CONTENT: The Bottom Line\n---------------\nGetting credit for all your responsible financial actions makes perfect sense, particularly if you're trying to build or improve your creditworthiness. When your credit reports are filled with positive information, your scores can rise as a result, and you might appear more attractive as a tenant should you want to rent again. Always maintain a close watch on your credit reports. There's no fee to pull your Experian report and you'll be able to see how the rent data you've ensured is on it is being recorded. END
 TITLE: How One “Credit Invisible” Went From No Credit Score to 745 in Less Than Two Years CONTENT: Get a Secured Credit Card\n-------------------------\nThe advice Campbell received from a co-worker was spot on. She opened a local bank account and, with that same bank, applied for a secured card. A secured credit card is one that requires you to place a deposit as collateral for the card. That deposit typically serves as your credit limit.\nCampbell's card was secured with a deposit of $300, which is how much she could spend on the card. That wasn't much, especially because she had a lot of expenses setting up a new apartment in a new country. But she employed a smart strategy: She put most of her purchases on the secured card, and then paid off the card every few days, she says. This demonstrated to the card issuer that she was responsible with the card and was able to pay it off on time.\nWhen you apply for a secured card, make sure you confirm with the issuer that they are reporting your payment history to at least one of the three credit reporting bureaus. You can find secured cards in Experian's CreditMatch™ marketplace. Also see Experian's review of the Best Secured Cards.\nYou should also check whether the secured card you're considering will automatically graduate you to an unsecured line of credit after you've proven yourself with a good track record. That's the type of card Campbell had: After just eight months, her card issuer extended her credit line by $100 without requiring an additional deposit. The credit line wasn't much, but it was enough for her to continue building a solid credit history. She made sure to pay her bills on time and even in advance. And four months after that, the card issuer refunded her $300 security deposit and granted her additional unsecured credit up to $2,600. END
 TITLE: How One “Credit Invisible” Went From No Credit Score to 745 in Less Than Two Years CONTENT: Apply for New Credit\n--------------------\nOnce she had one unsecured line of credit, Campbell received an offer for another credit card with Capital One. She applied for it and was approved. (Capital One offers several cards for people with less-than-perfect credit.) She continued to use both her cards, making sure to never miss a payment and keep a low credit utilization ratio.\nYour credit utilization ratio is how much credit you're using compared with how much credit you have available to you. In Campbell's case, her credit limits were not very high after her first year of building credit in the U.S.—only about $3,100 total on her two unsecured cards. Experts recommend keeping your utilization ratio below 30%, and for the best scores, below 10%. In Campbell's case, keeping it below 30% meant she could only have about $1,000 total on her statements every month.\nOne way around this is to make payments early, before the statement generates. That way, you can spend more on the cards and still maintain a low utilization ratio. This is a smart strategy to help you get into a prime credit category as soon as possible—so you can start getting rewarded for everyday spending.\nCampbell's strategy was prudent: She applied for another card as soon as she was able to, thus diversifying her credit mix and increasing the amount of credit available to her. Both these factors contributed to her rising credit score.\nOn the first anniversary of opening her secured card, Campbell used CreditMatch to learn that she was likely to get approved for a rewards card from American Express. She applied, was approved, and started spending so she could earn rewards and an intro bonus. (This card is typically only available to consumers with a high credit score.)\nIn February 2019, Campbell used the points from her card to book a flight to Cancun. \"It would have cost me about $700, but I got it for just $81 using my points,\" says Campbell. \"I went from being credit invisible to having credit that actually works for me.\"\nThis spring, Campbell used Experian Boost™† to instantly improve her FICO® Score☉ , the credit score used by most lenders, by getting credit for paying her utility bills on time. This caused her score to go up by seven points. By June 2019, just 20 months after she had applied for a secured card when she had no credit, Campbell's credit score was 745. To maintain that excellent score, Campbell never carries a credit card balance from month to month and pays all her bills on time. END
 TITLE: How One “Credit Invisible” Went From No Credit Score to 745 in Less Than Two Years CONTENT: Check Your Credit Reports\n-------------------------\nCampbell's success story demonstrates that it's possible to go from being credit invisible to having a stellar score in a short period of time. But as you build your credit history, you should also be checking your credit reports from the three bureaus to make sure your information is being reported correctly and that there are no inaccuracies dragging your credit scores down.\nYou can get a free credit report from Experian. There's no credit card needed to sign up, and you will have access to an updated report every 30 days. You're also entitled to a free report from each bureau once a year, which you can access at AnnualCreditReport.com.\nWhen you check your reports, review them to make sure your identifying information is correct and that the accounts are accurate. If you do find an error, you can dispute it with the bureau directly. You can easily initiate a dispute online with Experian.\nYou can also check your credit scores through Experian, which makes it easy to understand your progress. You'll get information on your scores, along with explainers on why they stand where they do. END
 TITLE: Can Bankruptcy Get Rid of Student Loans? CONTENT: Are Student Loans Dischargeable in Bankruptcy?\n----------------------------------------------\nIn bankruptcy, you can discharge many different types of debt. That includes unsecured debt like credit cards, personal loans, collection accounts, medical bills, business loans and, in some cases, even student loans.\nBy law, bankruptcy trustees are required to prioritize certain types of debts in regard to when they get paid. For example, things like child support and alimony, unpaid taxes and criminal fines must be paid before your unsecured debts, which are considered non-priority.\nWhile priority debts generally cannot be discharged, you may be able to be released from accounts included in the non-priority category. Student loans are counted among non-priority debts, but you'll still have a really hard time discharging them in Chapter 7 or Chapter 13 bankruptcy. The only exception is if you can prove that your student debt has caused undue hardship to yourself and your dependents. END
 TITLE: Can Bankruptcy Get Rid of Student Loans? CONTENT: When Do Student Loans Qualify Under Undue Hardship?\n---------------------------------------------------\nThe criteria for demonstrating undue hardship can vary from court to court, and meeting the standard in any court can be difficult. However, there are two tests courts generally use to determine whether you're experiencing undue hardship from your student loans. Depending on the court, there may be other tests that are used to determine whether you qualify to include student loans in your bankruptcy discharge, but these are the most common: END
 TITLE: Can Bankruptcy Get Rid of Student Loans? CONTENT: Alternative Ways to Pay Off Student Loan Debt\n---------------------------------------------\nBecause it can be almost impossible to get rid of student loans in bankruptcy, take some time to consider other ways to get relief or to pay off your debt with more affordable terms. END
 TITLE: Can Bankruptcy Get Rid of Student Loans? CONTENT: Take Steps Early to Avoid Credit Damage\n---------------------------------------\nIf you're not sure you can make your student loan payments, take steps early to avoid missing payments and default. Both of these scenarios can damage your credit score, making it difficult to qualify for refinancing or get approved for favorable credit terms in the future.\nAs you decide the best path forward for you, monitor your credit regularly to understand how your actions impact your credit score. Credit monitoring can also help you spot potential issues before they cause significant damage. END
 TITLE: How to Avoid Filing for Bankruptcy During COVID-19 CONTENT: Can You Meet Your Payments?\n---------------------------\nThis is the first question you need to ask yourself, and the answer will bring you clarity on your next steps. Anxiety about your debt and bill payment obligations isn't enough of a reason to start the bankruptcy process.\nFirst, determine whether you have the capacity to keep your accounts in good standing now and in the coming months. To find out, follow these four steps:\n1.  List your monthly net income. This can be money you receive from a job, unemployment insurance or any other dependable source of income. Make sure to count your net income, which is what's deposited into your bank account after all taxes and other deductions are removed.\n2.  Tally and subtract your expenses. Add up all of your monthly bills and necessities, such as food, housing and utilities. Subtract the total of those expenses from your net income to identify the amount you have remaining for your debt obligations.\n3.  List your debts and payments. Now turn to your debt, which may include loans and credit cards. List each account, along with the minimum payment required each month to keep the account in good standing. Add up all the minimum payments on your accounts to get your minimum overall monthly debt payment obligation.\n4.  Subtract your total monthly debt payment amount. Subtract this amount from your remaining monthly income (after necessary expenses). If you have enough to maintain at least minimum payments, you can breathe a sigh of relief. Cash may be tighter than normal, but bankruptcy can be off the table for now.\nOn the other hand, if you do not have enough money to cover all your minimum debt payments, explore actions you can take and how quickly they can be accomplished:\n*   **Pare down to essentials.** Revisit your expenses and look for ways to reduce your spending. Be realistic. If you've been spending $1,000 on groceries per month for a family of four by scouring for the best deals, odds are you can't slash that number in half. Cutting your entertainment purchases, however, may be a doable option.\n*   **Consider alternative income opportunities.** Even now, there may be a way to bring more money into the picture. You may sell things from around your home or take on part-time, gig or freelance work to add to your income.\n*   **Determine whether this is a short- or long-term setback.** You may not be able to adjust your income and expenses, so project into the future. If you believe your finances will improve within six months to a year, you may be able to implement other strategies to stay afloat. If it really is a permanent deficit, more extreme measures might be necessary. END
 TITLE: How to Avoid Filing for Bankruptcy During COVID-19 CONTENT: The Downsides to Going Bankrupt\n-------------------------------\nDue to the toll it takes on finances, credit and potentially your assets, bankruptcy should be considered only as a last resort. Having a bankruptcy on your credit report will make it much harder to borrow money in the future and could compromise your future goals, such as buying a house or starting a business.\nThere are two common types of bankruptcies available for consumers to file: Chapter 7 and Chapter 13. Both can help to relieve your debt and prevent things like foreclosure, utility shut-offs and wage garnishment. They do, however, address your debt in different ways, and have their own requirements and consequences. Here's what you should know. END
 TITLE: How to Avoid Filing for Bankruptcy During COVID-19 CONTENT: Alternatives to Filing Bankruptcy\n---------------------------------\nIf you worry either type of bankruptcy may be in your future, and reducing expenses and adding income isn't giving you enough extra money to cover your debt obligations, now is the time to explore your alternatives and any available relief options. Here are a few strategies that may help you avoid filing:\n*   **Put major payments on hold.** To help address the economic strain caused by the COVID-19 outbreak, the federal government stepped in to enact legislation and provide guidance that assists homeowners. New laws contain expanded protections for homeowners with federally backed mortgages. If you don't think you'll be able to meet your home mortgage payments, contact your lender. You may also be eligible for a forbearance plan, which can reduce or suspend your payments for up to 12 months. Federal student loan payments have also been suspended until at least September 30, 2021. Without having to pay these large monthly obligations, you may be able to meet your other expenses.\n*   **Look into expense breaks.** Local governments are also helping people make ends meet right now. Visit your state, county or city website to find out about options you have that may help you lower your necessary bills. For example, in response to the COVID-19 outbreak, utility providers in California have enacted provisions such as payment assistance programs as well as discounts on service. Find out what you can get in your state, and then apply. Every little break counts.\n*   **Consider a hardship program.** If you can't pay the minimum to your credit card accounts or loans, contact your lenders directly and ask if they can work something out with you. Many credit card companies are assisting their customers right now, so don't delay.\n*   **Enter into a debt management plan.** Nonprofit credit counseling agencies help consumers repay their credit card debts. Counseling consultations are free, and include a detailed review of your income, assets, expenses and liabilities. Your counselor will work with you to develop a plan based on your needs and goals.  \n    If a debt management plan (DMP) makes sense, it will be presented as a sound option against bankruptcy. DMPs are arranged so you can be free of much of your debt in no more than five years (though not all types of debt are covered). With DMPs, you make one payment to the agency and they distribute the funds to your accounts. Credit counselors can sometimes negotiate lower interest or a lower payoff amount, though paying less than the full amount owed could hurt your credit. Find a member agency though the National Foundation for Credit Counseling or the Financial Counseling Association of America.\n*   **Get help from friends and relatives.** If members of your family or close friends are in a better financial position than you are, this may be the time to turn to them for assistance. They may agree to lend or even gift you enough money to get by. If you borrow money from family members or friends, be sure to document the agreement, noting your repayment plan and any interest.\n*   **Borrow against your home equity.** If you've amassed a substantial amount of equity in your home, you may also consider using it to help you stay afloat. A home equity line of credit (HELOC) could give you access to up to 85% of your home's appraised value, at a low interest rate. You can use that money to pay your bills until you get back on your feet. Just keep in mind that you could lose your home if you can't keep up with equity payments.\n*   **Tap into your retirement account.** When finances are tight, taking money out of your retirement savings can be a tempting way to bridge the shortfall. Under normal circumstances there is an early withdrawal penalty of 10% of what you take out before the age of 59½, but if your financial hardship is related to the pandemic, the CARES Act waives that penalty. You may be hit with a higher tax bill, though, and withdrawing retirement savings can reduce the amount of money you have for your retirement years. That's why you should only consider this step if bankruptcy seems like the only other option. END
 TITLE: How to Avoid Filing for Bankruptcy During COVID-19 CONTENT: Bankruptcy: A Financial Last Resort\n-----------------------------------\nIn the end, the best way to think about whether bankruptcy makes sense is if there are no other reasonable alternatives to pursue. By running the numbers and exploring feasible options, your best course of action should soon become evident. Filing for bankruptcy is a serious decision that has long-term financial and credit implications. You'll want to look ahead and decide if future sacrifices are worth the immediate relief.\nIn the event that bankruptcy seems like it really may help, make an appointment at a credit counseling agency that offers bankruptcy education and counseling programs. They will guide you to an appropriate decision, without judgment or excess cost. END
 TITLE: How Does Filing Bankruptcy Affect Your Credit? CONTENT: For individuals, bankruptcy is a legal proceeding involving a borrower and their creditors. The process will have you formally declare that you cannot meet your debt obligations and can allow you to obtain relief from some or all of your current debts. Bankruptcy should be considered only as a last resort after you've exhausted all other options, including debt consolidation and a debt management plan (more on that later).\nBankruptcy is complex, so you'll want to hire an attorney to help you through the process. Depending on your situation, you may file one of two types of bankruptcy: Chapter 7 or Chapter 13.\n### Chapter 7 Bankruptcy\nThis form of bankruptcy provides borrowers with a clean slate, so to speak. A court trustee will supervise the sale of certain assets—some may be exempt, such as cars and basic household furnishings—and give the proceeds to your lenders.\nThe remainder of what you owe will be eliminated upon discharge of the bankruptcy, which is a legal order releasing you from the debts covered under the proceeding. In other words, you'll no longer be obligated to make payments.\nSince Chapter 7 bankruptcy wipes out your debt, it may seem like an appealing option. But you'll need to undergo a means test to determine whether you're eligible, and you can lose important assets if you choose this route.\n### Chapter 13 Bankruptcy\nInstead of providing a clean slate like Chapter 7, a Chapter 13 bankruptcy can reorganize your debts in a way to make them more affordable. You'll typically get on a three- or five-year plan, during which you'll repay some or all of what you owe.\nOnce you've completed the repayment plan, your bankruptcy will be discharged. While this option may not be as appealing to some, it may be a good idea in the long run if you can manage it. END
 TITLE: How Does Filing Bankruptcy Affect Your Credit? CONTENT: What Happens to Your Credit When You File for Bankruptcy?\n---------------------------------------------------------\nYour payment history is the most important factor in determining your credit score, and filing bankruptcy means that you won't be paying covered debts in full as you initially agreed.\nAs a result, filing bankruptcy can have a severely negative impact on your credit score. A Chapter 7 bankruptcy will remain on your credit reports and affect your credit scores for 10 years from the filing date; a Chapter 13 bankruptcy will affect your credit reports and scores for seven years.\nRegardless of which type of bankruptcy you choose, lenders will be able to see it on your credit reports in the public records section and it's likely to be a factor in their decision-making. Once you've completed the legal process, it will show that both the bankruptcy and the debts included in it have been discharged.\nIf you apply for credit, lenders may not approve your application unless the bankruptcy has been discharged. Even then, you may have a hard time getting approved for certain types of loans. If you do get approved, you may face steep interest rates and other unfavorable terms. END
 TITLE: How Does Filing Bankruptcy Affect Your Credit? CONTENT: How to Rebuild Credit After a Bankruptcy\n----------------------------------------\nWhile a bankruptcy will remain on your credit report for seven or 10 years, that doesn't mean your credit score can't improve during that time. As you add new positive information to your credit report, you can rebuild your credit score.\nHere are a few things you can do to make it happen:\n*   **Monitor your credit.** It's crucial that you check your credit score and credit report frequently. Not only does this help you keep track of your progress, but it also provides you with the information you need to address potential issues that could further damage your credit score.\n*   **Pay your bills on time.** Make it a goal to pay all bills on time going forward to avoid late payments. Remember, your payment history is the most influential credit score component, so it's a top priority.\n*   **Stick to a budget.** It's important to avoid debt that could potentially destroy all the work you've done so far. To do this, create a budget and stick to it. Try to avoid overspending and apply for credit only when absolutely necessary.\n*   **Consider a secured credit card.** A secured credit card functions similarly to a regular credit card, but requires an upfront security deposit as collateral for your credit line. As you use the card regularly, keep your balance low relative to your credit limit and pay your bill on time every month, you'll be able to establish some positive history on your credit report. Plus, if you pay your balance in full every month, you can do all of this without paying a dime in interest.\nAs you take these steps to establish good credit behaviors, you'll be able to slowly recover from the impact of your bankruptcy. END
 TITLE: How Does Filing Bankruptcy Affect Your Credit? CONTENT: Alternatives to Bankruptcy\n--------------------------\nWhile bankruptcy can provide some relief from debt, it's not always the best option. Here are a few alternatives to consider that may not have as big of an impact on your credit score.\n### Debt Consolidation\nIf you're in a situation where you're struggling with your debt but are still capable of making payments, a debt consolidation loan may help. With good or excellent credit, you may be able to qualify for a lower interest rate on the new loan than what you're currently paying on your debt.\n### Debt Management Plan\nA debt management plan allows you to pay off your debts over three or five years through a [credit counseling agency]('). Your credit counselor will collect payments for your unsecured debts and make payments to your creditors on your behalf.\nThey can also potentially reduce your monthly payments and interest rates, making the process more affordable. You'll typically need to pay a modest upfront fee and an ongoing monthly fee throughout your plan's term.\nConsider a debt management plan if your credit situation isn't the right fit for debt consolidation, but you want to avoid alternatives with more credit consequences.\n### Debt Settlement\nDebt settlement is the process of negotiating with your lenders to pay less than what you owe. You'll typically go through a debt settlement company, which collects payments from you until you have enough for the company to start the negotiations on your behalf.\nDuring this time, you'll be advised not to make your regular monthly payments on your loans and credit cards. As a result, debt settlement can damage your credit report significantly, though it's typically not as severe as bankruptcy.\nDebt settlement companies typically charge upfront and ongoing fees throughout the process, which can get expensive. Debt settlement can be risky and expensive, and it isn't guaranteed to work. If considered at all, it should only be as a final step before bankruptcy. END
 TITLE: How Does Filing Bankruptcy Affect Your Credit? CONTENT: Think About the Long Term\n-------------------------\nWhen you need debt relief, it's natural to focus mostly on what bankruptcy, debt settlement or any other alternative can do for you right now. But because each of these options can affect your credit score and financial situation, it's crucial that you take the time to research every course of action and consider both the short- and long-term effects of each.\nBefore you go through with one of them, consider consulting with a credit counselor or bankruptcy attorney to get an objective, expert opinion. Credit counselors generally don't charge for this service, and many bankruptcy attorneys offer free consultations as well.\nBetween your own research and expert advice, you'll have a better chance of choosing the correct path forward. END
 TITLE: What Is Chapter 7 Bankruptcy? CONTENT: How Does Chapter 7 Bankruptcy Work?\n-----------------------------------\nWhen you file for Chapter 7 bankruptcy, the court places an automatic temporary stay on your current debts. This stops creditors from collecting payments, garnishing your wages, foreclosing on your home, repossessing property, evicting you or turning off your utilities. The court will take legal possession of your property and appoint a bankruptcy trustee to your case.\nThe trustee's job is to review your finances and assets and oversee your Chapter 7 bankruptcy. They will sell certain property the bankruptcy won't let you keep (nonexempt property) and use the proceeds to repay your creditors. The trustee will also arrange and run a meeting between you and your creditors—called a creditor meeting—where you'll go to a courthouse and answer questions about your filing.\nThe list of property you don't have to sell or turn over to creditors (exempt property), and the total value that you can exempt, varies by state. Some states let you choose between their exemption list and the federal exemptions. But most Chapter 7 bankruptcy cases are \"no asset\" cases, meaning all of the person's property is either exempt or there's a valid lien against the property.\nAt the end of the process, approximately four to six months from your initial filing, the court will discharge your remaining debts (meaning you don't need to pay them anymore). However, some types of debts generally aren't dischargeable through bankruptcy, including child support, alimony, court fees, some tax debts and most student loans. END
 TITLE: What Is Chapter 7 Bankruptcy? CONTENT: What's the Difference Between Chapter 7 and Chapter 13 Bankruptcy?\n------------------------------------------------------------------\nChapter 7 and Chapter 13 are the two common types of bankruptcy that affect consumers. Either could help when you don't have the means to pay all your bills, but there are important differences between the two.\nA Chapter 7 bankruptcy can wipe out certain debts within several months, but a court-appointed trustee can sell your nonexempt property to pay your creditors. You also must have a low income to qualify.\nA Chapter 13 bankruptcy allows you to keep your stuff and get on a more affordable repayment plan with your creditors. You'll need to have enough income to afford the payments and be below the maximum total debt limits (currently nearly $400,000 for unsecured debts and $1 million-plus for secured debts).\nA court will approve the Chapter 13 repayment plan, which usually lasts three to five years, and your trustee will collect your payments and disburse them to your creditors. Once you finish the plan, the remainder of the unsecured debts is discharged. END
 TITLE: What Is Chapter 7 Bankruptcy? CONTENT: Who Qualifies For Chapter 7 Bankruptcy\n--------------------------------------\nThere are a few requirements you'll need to meet to file for a Chapter 7 bankruptcy:\n*   You generally must complete an individual or group credit counseling course from an approved credit counseling agency within 180 days before filing.\n*   Either the average of your monthly income during the previous six months must be less than the median income for the same-sized household in your state or you must pass a means test, which determines if your disposable income is high enough to make partial payments to unsecured creditors. If you don't pass the means test, you may still be able to file a Chapter 13 bankruptcy.\n*   You can't have filed a Chapter 7 bankruptcy during the past eight years.\n*   You can't have filed a Chapter 13 bankruptcy during the past six years.\n*   If you tried to file a Chapter 7 or 13 bankruptcy and your case was dismissed, you have to wait at least 181 days before trying again.\n*   You may be eligible to file, but a court could dismiss your case if it determines you're trying to defraud your creditors. For example, if you take out a loan or use credit cards with the intent of then declaring bankruptcy to avoid repaying the debt. END
 TITLE: What Is Chapter 7 Bankruptcy? CONTENT: What Debts Are Discharged in Chapter 7 Bankruptcy?\n--------------------------------------------------\nA Chapter 7 bankruptcy will generally discharge your unsecured debts, such as credit card debt, medical bills and unsecured personal loans. The court will discharge these debts at the end of the process, generally about four to six months after you start.\nSome types of unsecured debts usually aren't discharged through a Chapter 7 bankruptcy, including:\n*   Child support\n*   Alimony\n*   Student loans\n*   Some tax debt\n*   Homeowners association fees\n*   Court fees and penalties\n*   Personal injury debts you owe due to an accident while you were intoxicated\n*   Unsecured debts that you intentionally left off your filing\nYour creditor could also object and keep certain debts from getting discharged. For example, a credit card company could object to the debt from recent luxury goods purchases or cash advances, and the court may decide you still need to repay this portion of the credit card's balance.\nAdditionally, a Chapter 7 bankruptcy may discharge the debt you owe on secured loans. Secured loans are those backed by collateral, such as your home for a mortgage, or when a creditor has a lien on your property. However, even if the debt is discharged, the creditor may still have the right to foreclose on or repossess your property. END
 TITLE: What Is Chapter 7 Bankruptcy? CONTENT: What Do You Lose and What Can You Keep in Chapter 7 Bankruptcy?\n---------------------------------------------------------------\nIf you file for Chapter 7 bankruptcy, you may lose your nonexempt belongings, property that has a lien on it and property you offered as collateral for a loan.\nExamples of exempt property based on current federal limits for an individual include:\n*   A homestead exemption of $25,150\n*   Up to $4,000 on a vehicle\n*   Up to $1,700 in jewelry\n*   Up to $13,400 in personal property, such as books, household items, and clothes (there's a $625 per-item limit)\n*   Funds in tax-exempt retirement accounts, such as a 401(k) or 403(b) accounts, and up to $1,362,800 in combined savings in IRAs and Roth IRAs\n*   Public benefits, such as Social Security, veterans benefits and unemployment\n*   Up to $2,525 in books and tools of trade\n*   Alimony and child support\n*   Certain insurance benefits\n*   An additional $1,325 in property of your choice, plus up to $12,575 of unused funds from your homestead exemption\nDouble these amounts if you're married and file a joint tax return. Keep in mind that states may have different exemptions and limits that you can (or must) use when filing bankruptcy. For example, the homestead exemption for a single homeowner living in California starts at $75,000, but is unlimited in some other states.\nA trustee can't take property when its value is less than the exempt amount, which means you may be able to keep your home and vehicle.\nFor example, if your house is worth $400,000 and you still owe the lender $350,000, you have $50,000 worth of equity in the home. If your state has a homestead exemption higher than the $50,000 of equity you have, then the trustee can't take your home. But if your homestead exemption is $25,150, the trustee could take and sell your home, pay off your mortgage, give you the $25,150 exempt amount and use any remaining funds to repay other creditors.\nA similar scenario could play out with other forms of secured debts, such as an auto loan. However, just because the trustee can't take and sell these assets doesn't mean you'll get to keep them in the long run.\nWhen you're behind on your payments, your creditors can still foreclose on your home or repossess your vehicle once you complete the bankruptcy process. If you want to keep possessions that are securing your debts, you may have to continue making payments on the loan (if you're not already behind) or pay the full price to purchase the item. END
 TITLE: What Is Chapter 7 Bankruptcy? CONTENT: How Long Does Filing a Chapter 7 Bankruptcy Take?\n-------------------------------------------------\nGenerally, the entire Chapter 7 process from the initial credit counseling to the point when the court discharges your remaining debts takes about four to six months.\nYour case could take longer, however, such as when the trustee asks you to submit additional documents or if they have to sell your property to repay creditors. Or, perhaps you want to try to get your student loans discharged in bankruptcy. It's possible, but difficult, and can require a lengthy trial. END
 TITLE: What Is Chapter 7 Bankruptcy? CONTENT: How Long Does a Chapter 7 Bankruptcy Stay on Your Credit Report?\n----------------------------------------------------------------\nA Chapter 7 bankruptcy is a major derogatory mark that can hurt your credit for years to come. The Chapter 7 bankruptcy record can stay on your credit reports for up to 10 years from the filing date, and a completed Chapter 13 bankruptcy can remain on your credit report for seven years from the filing date.\nThe accounts that were included in your bankruptcy may fall off your credit report earlier, as most negative marks get removed after seven years. END
 TITLE: What Is Chapter 7 Bankruptcy? CONTENT: How to File for Chapter 7 Bankruptcy\n------------------------------------\nYou can choose to file for Chapter 7 bankruptcy on your own or hire an attorney to help. Some legal aid centers and nonprofit credit counseling agencies may also be able to offer you free assistance. Once you determine that you're eligible, the process will be largely the same:\n1.  **Attend counseling**: It starts with an individual or group credit counseling course from an approved credit counseling agency, which may take place online or over the phone. You must do this within 180 days of filing, although there are sometimes exceptions during emergencies or if there aren't enough approved agencies offering the service.\n2.  **File your forms**: On your bankruptcy forms you'll list your property, exemptions, creditors, income, recent transactions and other financial information. If you have secured debts, you'll need to decide whether you want to pay off the debt, continue making payments or surrender the property to the creditor. There's a fee to file the forms, although you can also request a fee waiver based on your income.\n3.  **Send verification documents to the trustee**: Once the court accepts your filing, you'll need to send documents to the bankruptcy trustee who will verify your bankruptcy forms. These could include recent bank statements, tax returns, paychecks and business documents.\n4.  **Creditor meeting**: Attend the creditor meeting with the trustee and answer questions about your paperwork and situation. The meeting is often brief, and your creditors may choose not to attend.\n5.  **Attend budget counseling**: Within 60 days of the creditor meeting, you must complete a second course from a counseling agency. Don't forget to submit your certificate of completion to the court, or the court may close your case.\n6.  **Wait for the discharge notice**: Once the court receives your certificate of completion, and often within 60 to 75 days of the creditor meeting, it can discharge your debts. During this time, you might have to give the trustee your nonexempt property, but don't sell or give anything to anyone else you have the trustee's permission.\nLife After Bankruptcy\n---------------------\nFiling bankruptcy can be financially, physically and emotionally draining. However, it may be your best option when bills keep piling up and you don't have the means to pay your creditors. It's also possible to recover from bankruptcy and rebuild your finances and credit, but it will take time. END
 TITLE: What Is Chapter 7 Bankruptcy? CONTENT: Life After Bankruptcy\n---------------------\nFiling bankruptcy can be financially, physically and emotionally draining. However, it may be your best option when bills keep piling up and you don't have the means to pay your creditors. It's also possible to recover from bankruptcy and rebuild your finances and credit, but it will take time. END
 TITLE: Best Business Credit Cards CONTENT: Best Card for Travel Perks and Benefits: The Business Platinum Card® From American Express\n------------------------------------------------------------------------------------------\n_This offer is not available through Experian. Check issuer's website for current offer details._  \nThis card comes with so many perks and cardholder benefits, we can't list them all here. Highlights include airport business lounge membership with the Delta SkyClub, Priority Pass Select and American Express Centurion lounges; a $200 annual airline fee credit; up to $200 in annual credits toward Dell purchases; and a $100 credit toward Global Entry or $85 credit toward TSA PreCheck application fees. Then there's a year of Platinum Global Access from WeWork, which includes access to more than 300 locations in 75 cities. You'll also get elite status with Marriott and Hilton hotels as well as with Hertz and National car rentals. There's a $595 annual fee for this card. END
 TITLE: Best Business Credit Cards CONTENT: Best Card for Earning Cash Back: Spark® Cash From Capital One®\n--------------------------------------------------------------\n_This offer is not available through Experian. Check issuer's website for current offer details._  \nWhen it comes to earning the most possible cash back from your small business purchases, this card comes out on top. It offers 2% cash back on all purchases, with no limits. Better yet, you'll earn a $500 sign-up bonus after you spend $4,500 on your card within three months of account opening. Benefits include free employee cards, quarterly and year-end summaries, and downloadable purchase records. The $95 annual fee is waived the first year. END
 TITLE: Best Business Credit Cards CONTENT: Best Card for Introductory Financing: U.S. Bank Business Platinum Card\n----------------------------------------------------------------------\n_This offer is not available through Experian. Check issuer's website for current offer details._  \nYou won't find as many introductory financing offers for small business cards as you will with personal cards, and the offers found with small business cards tend to be shorter. However, the U.S. Bank Business Platinum Card is a big exception. It offers new account holders 20 months of interest-free financing on both new purchases and balance transfers, with a 3% balance transfer fee. This is longer than nearly all introductory financing offers for personal credit cards. It also features 12.24% to 20.24% annual percentage rates (APRs), which are lower than most competing small business credit cards. With these great interest rates, you can't expect to earn rewards for spending or enjoy all sorts of travel perks. Nevertheless, you still get to set controls on employees' spending by time, place and dollar amount. You can also customize payment due dates and set up account alerts and other interest-saving tools. And there's no annual fee for this card. END
 TITLE: Best Business Credit Cards CONTENT: Best Card for Airline Rewards and Benefits: Delta SkyMiles® Reserve Business American Express Card\n--------------------------------------------------------------------------------------------------\n_This offer is not available through Experian. Check issuer's website for current offer details._  \nAmerican Express and Delta pack a lot of features into this card, and it's a great product to have if you regularly fly on Delta. First, you can earn 80,000 bonus miles and 5,000 Medallion® Qualification Miles (MQMs) after you spend $6,000 on your new card within three months of account opening.\nPerks include a free checked bag, priority boarding and a membership in the Delta SkyClub airport lounge network. You also receive a companion certificate good for a free airfare when you purchase a qualifying economy or first-class ticket in the contiguous 48 states. One of the most valuable perks: Cardholders receive upgrade priority ahead of non-cardholders with the same Medallion elite status. So having this card, and elite status, will mean that you have a much higher chance of being upgraded to first class when eligible. There's a $450 annual fee for this card. END
 TITLE: Best Business Credit Cards CONTENT: Best Card for Earning Bonus Point Rewards: Chase Ink Business PreferredSM Card\n------------------------------------------------------------------------------\n_This offer is not available through Experian. Check issuer's website for current offer details._  \nOne of the great reasons to have a small business credit card is to earn additional rewards on the kinds of purchases your business makes. This card offers you 3 points per $1 spent on combined purchases of travel, shipping, internet, cable and phone services. You also earn 3 points per dollar on advertising purchases made with social media sites and search engines. However, you only earn 3 points per dollar on your first $150,000 spent on qualifying purchases each account anniversary year, and you earn 1 point per dollar spent elsewhere.\nNew account holders can also earn 80,000 bonus points after spending $5,000 on new purchases within three months of account opening. Points are worth 1.25 cents each toward travel booked through Chase, or you can transfer your rewards to airline miles or hotel points. There's a $95 annual fee for this card. END
 TITLE: What Is the Credit CARD Act of 2009? CONTENT: How the Credit CARD Act Protects Consumers\n------------------------------------------\nThe CARD Act includes a wide range of consumer protections, mostly related to interest rates and how they are calculated, fees, disclosures and marketing towards young adults. The law ended these practices:\n**Double-cycle billing**: The CARD Act prohibits a practice called double-cycle billing, an unusual way of calculating interest charges that was unique to the credit card industry. It's hard to imagine now, but before the CARD Act was implemented, credit card issuers would calculate your interest charges based on the average daily balance of your previous two billing cycles. As a result, cardholders were often paying interest on charges that they had already paid off. Today, credit card issuers must calculate interest based on an account's average daily balance during just the previous billing cycle.\n**Interest rate increases at will**: Before the law went into effect, card issuers could raise your rate without reason and not even notify you ahead of time. Under the CARD Act, interest rate hikes on existing balances are largely prohibited, except in instances where rates vary with the prime rate, penalty rates are charged for late payments, or the promotional rates expire. But the law allows you to opt out of any changes made to your credit card, and lets you pay off your existing balance under the previous terms over as long as five years.\nThe law also banned a practice called universal default, in which a card issuer raised interest rates in response to a late payment reported by an unrelated creditor. And it requires credit card issuers to apply payments to the high interest balances first in cases where a consumer has more than one interest rate on an account.\n**Unfair fees**: Before the CARD Act took effect, credit card issuers could approve your request to spend over your limit—then slap you with an over-the-limit fee for doing so. No more. In addition, under the law late fees are capped at $25 for an occasional late payment (but they can rise for repeated late payments). Also, subprime card issuers can't impose account opening fees that are greater than 25% of the available credit limit.\nIn addition to limiting unfair lending practices, the CARD Act created new consumer protections:\n**Help managing accounts**: The CARD Act requires card issuers to make disclosures that can help consumers manage their accounts. For example, statements must include information on how long it will take to pay off a balance if only the minimum payment is made each month. Also, card issuers have to give consumers at least 21 days to make payments after their statement closes. The due date has to be on the same day of the month, every month and payments received before 5:00 p.m. on the due date must be credited to the account on that day.\n**Special protections for students and young people**: The CARD Act prohibits issuers from granting new accounts to anyone under 21 years of age unless they have either an adult cosigner or they can show proof that they can repay their credit card debt. The law also requires credit card issuers to remain at least 1,000 feet away from college campuses if they are offering any type of gift to students in exchange for completing a credit card application. END
 TITLE: What Is the Credit CARD Act of 2009? CONTENT: What the Credit CARD Act Doesn't Cover\n--------------------------------------\nDespite all the reforms contained in the law, it has been criticized for leaving out certain credit card protections. For example, the law doesn't impose an overall cap on interest rates, so card issuers are free to charge rates as high as the market will bear. Also, small business credit cards are exempt from many of the provisions of the CARD Act, although many card issuers voluntarily have their small business cards comply with most of the protections afforded to consumer credit cards. END
 TITLE: What Is the Credit CARD Act of 2009? CONTENT: Credit Cards for Minors\n-----------------------\nEven before the the CARD Act, you had to be 18 years old to open a credit card account as the primary cardholder. However, today many card issuers allow minors to become authorized users on their parents' or another adult's account. Allowing your child to use a credit card under your supervision can help them to establish their credit history while giving you a chance to teach them responsible credit card use. It can also give them spending power that can be critical in an emergency. For more information, see [\"When Should My Child Get a Credit Card?\"](') END
 TITLE: What Is the Credit CARD Act of 2009? CONTENT: The Bottom Line\n---------------\nWhile perhaps not perfect, the Credit Card Act of 2009 has undoubtedly protected U.S. consumers from potentially millions of dollars in fees and interest in its 10 years on the books. Be sure you know your rights as a cardholder, and raise a red flag if you notice any practices that don't conform to the law. Contact the Consumer Financial Protection Bureau and file a complaint if your concerns go unanswered. END
 TITLE: Secured Card or Prepaid Card: Which Is Best For You? CONTENT: What Is a Secured Credit Card?\n------------------------------\nA secured credit card is backed with a refundable security deposit. The biggest advantage of a secured credit card is that card issuers report your payment activity to the three credit bureaus (Experian, TransUnion and Equifax). If you make your payments on time and keep your credit utilization ratio (the portion of available credit you're using) low, you'll build your credit history and likely improve your credit scores.\nSome secured cards also offer users benefits that are available on regular credit cards, such as price protection, rental car insurance and extended warranty coverage. You'll also usually get the same legal protections in case of fraud, such as zero liability on unauthorized charges.\nSecured cards may charge a variety of fees, such as annual fees, application fees or maintenance fees, and they often charge higher interest than other types of credit cards. Make sure you understand and compare terms when you're looking for a secured card, and commit to paying off your balance every month to avoid costly interest charges.\n### How Does a Secured Credit Card Work?\nYou must apply for a secured credit card just like you would any other credit card. Because secured cards are backed by a security deposit, credit issuers are more likely to approve users with a poor credit history than they are with regular unsecured cards.\nOnce approved, you submit a refundable security deposit, which typically serves as your credit limit. So if you deposit $500, that's the amount of credit you are extended for the card. You then use your card for purchases just as you would any other credit card.\nAs with any other credit card, you receive monthly statements and need to make monthly payments. If you don't pay off your balance in full every month, then you will incur interest charges. And if you don't make your payment on time, you'll incur late fees. If you ever default on your payments, your issuer will use the security deposit, and you will forfeit that deposit.\nWhen you can qualify for a standard unsecured card, you can pay off your remaining secured card balance, close your account and receive a refund of your security deposit. Some card issuers will automatically move you to an unsecured card once you've used your card responsibly for a certain amount of time. END
 TITLE: Secured Card or Prepaid Card: Which Is Best For You? CONTENT: Secured Card Options\n--------------------\n**Capital One® Secured Mastercard®**  \nThis secured card has no annual fee and requires as little as a $49 refundable security deposit to receive a $200 line of credit. Capital One may also consider you for a higher credit limit in as little as six months. There's no annual fee for this card and no foreign transaction fees either.  \nWhat Is a Prepaid Card?\n-----------------------\nA prepaid card is a type of debit card that's not attached to a bank account. Like a secured card, it also requires you to make a deposit before you can use it. However, you don't need to apply for a prepaid card the same way you do a secured credit card: There's no credit check, so you don't have to worry that you will be turned down.\nThe prepaid card acts more like a debit card, and the amount of money you load onto it is how much you can spend. When you pay for something with a prepaid card, the amount is deducted from your card balance. Once you've used up the amount of your deposit, you need to load more funds onto the card before you can use it again.\nYou won't incur late fees on a prepaid card because you don't ever have to make monthly payments. But you also won't build up a credit history using a prepaid card, because your usage isn't reported to the credit bureaus.\nPrepaid cards don't assess annual fees or finance charges, but there are other fees you need to be aware of. When using a prepaid card, you may be charged a small fee every time you make a purchase. Other cards may assess users an activation fee or a monthly maintenance fee. You may even be charged a fee to simply load more money onto the card. Each prepaid card is different, however. Some don't assess usage fees at all, so it's important to understand the terms before signing up for one.\n### Can You Build Credit With a Prepaid Card?\nNo, you cannot build credit with a prepaid card. Since prepaid cards only allow you to spend money that you've already deposited into an account, they are not considered a loan. And because prepaid card users aren't borrowing any money, their balances and payments aren't reported to credit bureaus. That means that prepaid accounts won't appear on your credit report or have any effect on your credit scores.\nIf your goal is to build a credit history, a secured card is the clear choice here. If you make your payments on time and carry little, if any, debt, then you'll add positive information to your credit history and likely improve your credit scores.\nBut if you simply want an alternate method of payment, a prepaid card may be a good option. With a prepaid card, there will be no security deposit, and you'll immediately have access to all the funds you place into your account. Also, you can never go into debt or incur interest charges with a prepaid card.\nA prepaid card can also be a good way to budget: The amount you load onto a prepaid card can be designated for a certain time period, like a week or a month, and once you've spent it, you are forced to stick to your budgeted limit. Some parents might choose a prepaid card for their children if they want to offer them a set allowance.\nPrepaid cards and secured credit cards look a lot alike, and can both be used to make purchases, but that's where the similarities end. By understanding the strengths and weaknesses of these two methods of payment, you can choose the right one for your needs. END
 TITLE: Secured Card or Prepaid Card: Which Is Best For You? CONTENT: What Is a Prepaid Card?\n-----------------------\nA prepaid card is a type of debit card that's not attached to a bank account. Like a secured card, it also requires you to make a deposit before you can use it. However, you don't need to apply for a prepaid card the same way you do a secured credit card: There's no credit check, so you don't have to worry that you will be turned down.\nThe prepaid card acts more like a debit card, and the amount of money you load onto it is how much you can spend. When you pay for something with a prepaid card, the amount is deducted from your card balance. Once you've used up the amount of your deposit, you need to load more funds onto the card before you can use it again.\nYou won't incur late fees on a prepaid card because you don't ever have to make monthly payments. But you also won't build up a credit history using a prepaid card, because your usage isn't reported to the credit bureaus.\nPrepaid cards don't assess annual fees or finance charges, but there are other fees you need to be aware of. When using a prepaid card, you may be charged a small fee every time you make a purchase. Other cards may assess users an activation fee or a monthly maintenance fee. You may even be charged a fee to simply load more money onto the card. Each prepaid card is different, however. Some don't assess usage fees at all, so it's important to understand the terms before signing up for one.\n### Can You Build Credit With a Prepaid Card?\nNo, you cannot build credit with a prepaid card. Since prepaid cards only allow you to spend money that you've already deposited into an account, they are not considered a loan. And because prepaid card users aren't borrowing any money, their balances and payments aren't reported to credit bureaus. That means that prepaid accounts won't appear on your credit report or have any effect on your credit scores. END
 TITLE: Secured Card or Prepaid Card: Which Is Best For You? CONTENT: If your goal is to build a credit history, a secured card is the clear choice here. If you make your payments on time and carry little, if any, debt, then you'll add positive information to your credit history and likely improve your credit scores.\nBut if you simply want an alternate method of payment, a prepaid card may be a good option. With a prepaid card, there will be no security deposit, and you'll immediately have access to all the funds you place into your account. Also, you can never go into debt or incur interest charges with a prepaid card.\nA prepaid card can also be a good way to budget: The amount you load onto a prepaid card can be designated for a certain time period, like a week or a month, and once you've spent it, you are forced to stick to your budgeted limit. Some parents might choose a prepaid card for their children if they want to offer them a set allowance.\nPrepaid cards and secured credit cards look a lot alike, and can both be used to make purchases, but that's where the similarities end. By understanding the strengths and weaknesses of these two methods of payment, you can choose the right one for your needs. END
 TITLE: Marriott’s New Rewards Program: What You Need to Know CONTENT: Which Hotel Brands Are Included?\n--------------------------------\nWhile the program's new name has generated mixed feeling among travelers, few can complain about the number of options now under the Bonvoy umbrella. The Marriott Bonvoy rewards program includes all the brands that were part of the Marriott Rewards program, including the upscale JW Marriott, Courtyard by Marriott business hotels and midrange Springhill Suites. It also includes all of the properties that had been part of the Starwood Preferred Guest program, such as the high-end Westin and St. Regis, midrange Sheraton and the budget-friendly Aloft brands. Finally, Marriott took the opportunity to integrate the Ritz-Carlton Rewards program into the new Bonvoy brand as well. END
 TITLE: Marriott’s New Rewards Program: What You Need to Know CONTENT: Combining Your Rewards Accounts\n-------------------------------\nYou may be one of millions of travelers who have accounts with Marriott Rewards and Starwood, or with Ritz-Carlton Rewards and Starwood (previously you couldn't have had both a Marriott Rewards and a Ritz-Carlton Rewards account at the same time). Before Bonvoy, it was possible to link your Marriott or Ritz-Carlton Rewards account to your Starwood account. This was convenient, as it would allow you transfer points between these programs so you could utilize either one.\nWith the new Bonvoy program, you'll need to go to Marriott's account merge page to request to combine accounts. Once you combine your accounts, you'll conveniently have a single login, and your elite night stay credits will be combined. Plus, you'll be able to book hotels and redeem points at a tremendous number of hotels—a total of more than 6,700 properties around the world. END
 TITLE: Marriott’s New Rewards Program: What You Need to Know CONTENT: How to Earn Marriott Bonvoy Points\n----------------------------------\nIf you were already a fan of the Marriott Rewards program and you're unsure how the new Bonvoy program will work, don't worry. Bonvoy is largely just a rebranding of the old Marriott Rewards program, and you'll still earn points the way you did previously. For example, you earn 10 points per dollar spent on eligible hotel charges, with the exception of three brands: At Element, Residence Inn and TownePlace Suites hotels, you'll only earn five points per eligible dollar spent.\nAnd as you'll see below in greater detail, you can also earn points through Marriott's co-branded credit cards, which now carry the Bonvoy brand. Other ways to earn Marriott Bonvoy points include hosting meetings and events and participating in the Rewarding Events program. You can also earn points with travel partners such as Hertz and CruisesOnly. END
 TITLE: Marriott’s New Rewards Program: What You Need to Know CONTENT: How to Redeem Marriott Bonvoy Points\n------------------------------------\nJust like earning points, you'll be able to redeem your Marriott Bonvoy points much like you did with the Marriott Rewards program. However, Marriott will be introducing Off Peak and Peak awards soon (no time frame has been announced). Currently, Marriott offers eight different hotel categories that allow you to redeem between 7,500 to 85,000 points per night. The new Peak and Off Peak awards will raise or lower the amount of points needed by 15% to 33%, depending on the award category. For example, a Category 4 award has a standard price of 25,000 points, but it will change to 20,000 points Off Peak and 30,000 points during Peak times.\nOther options for free night awards include PointSavers, which are highly discounted award categories, and Cash + Points awards, which allow you to combine approximately half the points normally required with a cash co-pay. To make things even more confusing, both the PointSavers and the Cash + Points awards will also have Peak and Off Peak prices. With eight award categories, three types of awards and three different award levels, that adds up to a whopping 72 different possible prices! To get all the details, make sure to check out Bonvoy's award charts.\nAnother award option that was popular with the Starwood program is transferring your points to frequent flyer miles. The new Marriott Bonvoy program allows you to transfer your rewards to miles with 40 different airline programs at a 3-to-1 ratio. And when you transfer your points to miles, Marriott will add a 5,000-mile bonus for every 60,000 points transferred. You also get a 10% mile bonus when transferring points to United MileagePlus miles.\nMarriott Bonvoy points can also net you some pretty special non-travel awards. If you're the kind of person who loves attending special events, the Marriott Moments program could be for you. It offers you the chance to redeem your points for tickets and VIP experiences at concerts, sporting events and culinary experiences. Examples include Coachella tickets with backstage access, a private dinner with a celebrity chef or a luxury suite for an NHL hockey game. Finally, you can redeem your points for merchandise or gift cards from dozens of shopping partners. END
 TITLE: Marriott’s New Rewards Program: What You Need to Know CONTENT: The New Marriott Bonvoy Credit Cards\n------------------------------------\nThe biggest shakeup users will see under the new Bonvoy program is with credit cards. If you have a Starwood Preferred Guest® card from American Express, then you'll receive the new Marriott Bonvoy card. In the meantime, your existing card will continue to work, plus you'll get a free night award each year on your account anniversary.Likewise, if you have Starwood Preferred Guest® Luxury card from American Express, your account will be transitioned to the Marriott Bonvoy Brilliant card from American Express. Those who have a Ritz-Carlton® Rewards Card from Chase, will receive a card rebranded as or The Ritz-Carlton card from JPMorgan. And if you have a Chase Marriott Rewards® Business card, then you'll receive the Chase Marriott Bonvoy Premier Plus Business card.\nNew applicants now have the choice of three new credit cards:\n*   Marriott Bonvoy Boundless™ Credit Card from Chase, with a $95 annual fee\n*   Marriott Bonvoy Brilliant™ American Express® Card, with a $450 annual fee\n*   Marriott Bonvoy Business™ American Express® Card, with a $125 annual fee ($0 for the first year, then $95 annual fee if your application is received before March 28, 2019) END
 TITLE: Marriott’s New Rewards Program: What You Need to Know CONTENT: Change Is Good\n--------------\nWhatever you think of the Bonvoy name, it's probably a good thing Marriott has combined these three programs. It also makes sense that they've kept most of the terms the same, and given consumers additional credit card options to earn rewards. Nevertheless, it could take you a little time to combine your accounts and learn more of the details. But by taking a few minutes to work through this new system, you'll be able to make the most of your hotel rewards when you travel. END
 TITLE: What Is Alternative Minimum Tax? CONTENT: The AMT is a parallel tax system that has different rules, tax rates and calculations than the regular tax system. High-income earners who might be affected by the AMT must run their numbers through the regular tax system with its various exemptions and deductions and then go back and do their tax calculations again, using AMT criteria. Bottom line: They pay whichever amount is higher.\nSound unfair? Some taxpayers think so, but fairness is exactly what Congress had in mind back in 1969 when it began enacting laws to ensure that high-income taxpayers paid at least a minimum amount of tax and couldn't use loopholes to skirt their obligation.\nBecause of how Congress wrote the laws, however—particularly, not indexing exemptions for inflation—the AMT also began to affect middle-income households years after it was enacted, which was never the intention.\nThat changed with the Tax Cuts and Jobs Act of 2017 (TCJA), which made significant alterations to the regular tax system and the AMT. As a result, starting with the 2018 tax year and going through 2025 (when the changes are set to expire), the AMT will generally only affect certain households with incomes over $200,000. In fact, according to the Urban-Brookings Tax Policy Center, only an estimated 0.1% of all households will have to pay the AMT for the 2018 tax year. The majority of those make over $1 million. END
 TITLE: What Is Alternative Minimum Tax? CONTENT: How Does the AMT Work?\n----------------------\nUnder the regular tax system, you may be able to lower your taxable income by claiming deductions and adjustments that decrease your adjustable gross income and make you eligible for additional tax credits. As a result, some high-income taxpayers can greatly decrease how much they owe in federal income taxes under the regular system.\nThe AMT system doesn't allow the same deductions and adjustments, and it may consider different forms of income as taxable. For example, the regular tax system might exclude income from certain types of municipal bonds, while the AMT considers this income taxable.\nYou also can't claim the standard IRS deduction with the AMT system. The standard deduction may lower your income by $12,000 or more in 2018 under the regular system depending on your age, filing status and other factors. END
 TITLE: What Is Alternative Minimum Tax? CONTENT: How Is the AMT Calculated?\n--------------------------\nThe exact AMT calculations are detailed on IRS Form 6251, and they're very complicated. You can use tax software or hire a professional tax preparer to do the work for you, but you may still want to understand how the calculations work.\nThe IRS offers a simplified overview of what goes into the AMT calculations:\n1.  Determine alternative minimum taxable income (AMTI) using the AMT system to add up all your taxable income and make adjustments based on the allowed AMT adjustments and deductions.\n2.  Subtract your AMT exemption from your AMTI.\n3.  Multiply the result by your AMT tax rate.\n4.  If applicable, subtract your AMT foreign tax credit.\nYour AMT exemption lowers your taxable income within the AMT system, and helps keep low- to medium-income households from being affected by AMT.\nFor the 2018 tax year, the AMT exemptions are:\n*   Single and head of household: $70,300\n*   Married filing jointly: $109,400\n*   Married filing separately: $54,700\nAs an example, a single filer with an AMTI of $200,000 would subtract the $70,300 exemption for a taxable income under the AMT system of $129,700.\nSome high-income taxpayers don't get to claim the full exemption. The exemption amount begins to decrease (eventually down to zero) for single taxpayers with an AMTI of $500,000 or more and married filing jointly taxpayers with an AMTI of $1 million or more.\nAfter subtracting your AMT exemption, the resulting taxable income is subject to the AMT tax rates.\nThere are two AMT tax brackets: 26 percent for the first $191,100 of taxable AMT income and 28 percent for anything above that. Using the example above, the $129,700 taxable income gets multiplied by .26 (the 26 percent tax rate) to wind up with a tax of $33,722. This is called the tentative minimum tax.\nIf you qualify for the foreign income tax credit, you may have to subtract the AMT foreign tax credit (see page 10 of the instructions for Form 6251 for more details) to find your final tentative minimum tax—the amount you owe based on the AMT system.\nNext, compare your final tentative minimum tax with how much you owe based on the regular tax system. You pay the greater of the two as your income tax for the year. (Note that technically, only the difference between your regular income tax amount and tentative minimum tax amount is considered your alternative minimum tax.) END
 TITLE: What Is Alternative Minimum Tax? CONTENT: Do I Need to Worry About the AMT?\n---------------------------------\nThe AMT is an alternative and parallel tax system that could lead some high-income households to pay more in federal income taxes than they would under the regular tax system.\nYou can be certain you won't have to use the AMT if your income is below your AMT exemption amount. Otherwise, you may not know whether you need to use the AMT unless you calculate your federal income tax amount under both systems.\nMost taxpayers aren't affected by the AMT. If you are and you need to use the AMT system, you may need to do some extra legwork when it comes to tax time—or enlist the help of a tax software program or a tax preparer. END
 TITLE: The Child Tax Credit Explained CONTENT: The child tax credit—which is now $2,000 per qualifying dependent—was created to help parents offset the costs of raising a family. Unlike a tax deduction, which reduces your taxable income, a tax credit directly reduces the amount of tax you pay. If you owe $5,000 in taxes otherwise and can apply the child tax credit for one qualifying dependent, for example, your tax bill would lower to $3,000.\nThe child tax credit is available to those whose incomes fall within a certain range. For the 2018 tax year and beyond, the threshold where the child tax credit begins to phase out is $200,000 for single filers and $400,000 for those married filing jointly. Also note that families must earn at least $2,500 per year to qualify for this credit.\nKeep in mind that the income thresholds are based on your modified adjusted gross income (MAGI), or the amount of income you have after accounting for other deductions and credits. If a single filer or couple reports a MAGI above income thresholds, the credit is reduced by $50 for each $1,000 their income exceeds the threshold.\nThe child tax credit is also refundable to some taxpayers in amounts up to $1,400. This means that even if you don't owe any taxes at the end of the year, you can still be refunded up to $1,400 of the credit. END
 TITLE: The Child Tax Credit Explained CONTENT: How Do I Qualify for the Child Tax Credit?\n------------------------------------------\nBeyond the income threshold, you must meet additional requirements to qualify for the child tax credit. For you to receive this credit, the following must all apply:\n*   The child is younger than 17 at the end of the tax year\n*   You claim the child as a dependent on your taxes\n*   The child lives with you for at least half of the year\n*   The child is a U.S. citizen, a U.S. national or a resident alien\nThe child tax credit applies to each qualifying child in your household, which especially helps if you have a large family. If you have two qualifying children, you could apply for a tax credit of $4,000. With five qualifying children, your credit would be worth $10,000. END
 TITLE: The Child Tax Credit Explained CONTENT: Will I Benefit From the Child Tax Credit?\n-----------------------------------------\nConsidering the child tax credit was worth $1,000 per qualifying child for households with modified adjusted gross incomes up to $75,000 for single filers and $110,000 for married filing jointly until 2017, this updated credit is expected to apply to many more households. However, other changes caused by tax reform, including the end of some personal exemptions, could offset part of the benefit for families.\nEither way, it's best to take advantage of any tax credits you can qualify for while you can. If you have children under the age of 17 in your home and meet all other requirements, you could see some tax relief this year and beyond. END
 TITLE: The Child Tax Credit Explained CONTENT: Do Taxes Impact My Credit Report?\n---------------------------------\nWhile you should always pay taxes when they are due, many taxpayers wonder whether tax information impacts their credit report or credit scores. In April 2018, all three credit reporting agencies (Experian, TransUnion and Equifax) agreed collectively to remove tax lien information from credit reports.\nIf you're curious about information that may be impacting your credit scores and overall credit health, it never hurts to check your credit reports. Doing so can help you discover incorrect information or simply monitor your progress. END
 TITLE: Is Personal Loan Interest Tax-Deductible? CONTENT: Can You Deduct Personal Loan Interest on Your Taxes?\n----------------------------------------------------\nYou can't deduct an unsecured personal loan's interest on your taxes unless you use the loan's proceeds for one of the following purposes:\n*   Business expenses\n*   Qualified higher education expenses\n*   Taxable investments END
 TITLE: Is Personal Loan Interest Tax-Deductible? CONTENT: Are Personal Loans Taxable Income?\n----------------------------------\nYou usually don't pay income taxes on the proceeds from a personal loan because you need to repay the money. However, if the lender forgives or cancels some of your debt, the portion you don't have to repay may become taxable income.\nFor example, if you're repaying a federal student loan with an income-driven repayment plan, the remainder of your loan may be canceled after 20 to 25 years. Your lender may then send you (and the IRS) a Form 1099-C showing how much debt was canceled, which you'll include in your tax return.\nA similar situation can happen if you settle a debt with a creditor for less than you owe or negotiate a debt reduction. Overall, you may save money, as paying taxes on $1,000 in forgiven debt will be less expensive than paying the entire $1,000. However, you want to be prepared for the tax consequences.\nThere are a few exceptions and exclusions when you don't have to include forgiven or canceled debt in your taxable income. For example, if you qualify for certain federal student loan forgiveness programs, such as the Public Service Loan Forgiveness program, the forgiven amount won't be taxable.\nMore generally, when your debts are canceled or forgiven and you have more liabilities than assets (you're insolvent, in other words), part or all of the forgiven amount may be excluded from your income. Also, your debts that are discharged when you file bankruptcy don't become taxable income. END
 TITLE: Is Personal Loan Interest Tax-Deductible? CONTENT: Getting a Good Rate on Your Personal Loan\n-----------------------------------------\nWhile you may be able to deduct the interest you pay on a personal loan in certain circumstances, you still want to minimize how much interest you pay in the first place. Shopping for a loan from multiple lenders and building your credit before applying can help you find and qualify for the best rates. If you want to quickly compare options from multiple lenders, Experian's CreditMatch™ personal loan tool lets you quickly compare and sort lenders' loan options. END
 TITLE: Do You Have to Pay Income Taxes on Personal Loans? CONTENT: Are Personal Loans Treated as Taxable Income?\n---------------------------------------------\nPersonal loans generally aren't taxable because the money you receive isn't income. Unlike wages or investment earnings, which you earn and keep, you need to repay the money you borrow.\nBecause they're not a source of income, you don't need to report the personal loans you take out on your income tax return. This is true whether a bank, credit union, peer-to-peer lender or another financial institution lent you the money.\nIf you receive a personal loan from a friend or family member, there may be other tax implications, but the money still won't be taxable income for you. For example, if the loan has no interest or a below-market interest rate, as determined by the current \"applicable federal rate,\" the IRS may consider it a gift rather than a loan.\nWhen a gift is for more than the gift tax exclusion for the year—$15,000 in 2020—the person who gives you the money may have to file an extra form (IRS Form 709). But, even then, you don't need to report receiving the gift. And, the gift giver won't pay any gift taxes unless they've given away more than the lifetime gift tax exemption—which was $11.58 million as of 2020. END
 TITLE: Do You Have to Pay Income Taxes on Personal Loans? CONTENT: Is a Forgiven Personal Loan Considered Taxable Income?\n------------------------------------------------------\nAs a borrower, you may need to pay income tax on a portion of a personal loan that's canceled, forgiven or discharged.\nFor example, if you have a $2,500 outstanding balance on a personal loan and the creditor agrees to settle the account for $1,500, then you'll have $1,000 in canceled debt. The canceled debt is considered income, even if part of the canceled debt is made up of fees and interests. The lender will also send you and the IRS a Form 1099-C you can use to help prepare and file your tax return.\nYou could wind up with a similar situation with other types of debt as well. With some federal student loan repayment plans, your remaining student loan debt will be forgiven after you make payments for 20 to 25 years, with the forgiven amount considered taxable income.\nHowever, there are also exceptions. A forgiven personal loan doesn't lead to taxable income if, for example, your debt is discharged during bankruptcy. Or, if you're insolvent (you owe more money than your current assets) when your debt is forgiven, then part or all of the forgiven debt could be excluded from your gross income. Some student loan forgiveness programs also lead to debt forgiveness without tax consequences. END
 TITLE: Do You Have to Pay Income Taxes on Personal Loans? CONTENT: Are Personal Loans Tax Deductible?\n----------------------------------\nYou can't deduct the interest you pay on your personal loan unless you use the money for a few specific reasons and meet the corresponding eligibility requirements.\nOne is when you use some or all of the money for a business expense. You may then be able to deduct the corresponding amount of interest payments from your business income. But make sure the lender allows you to take out a loan for business use (some do, others don't), and keep records of how you spend the money.\nAnother exception could be if you take out a personal loan and use all the money to pay for qualified educational expenses for yourself, a spouse or a dependent. Or, if you refinance a student loan with a personal loan. In these cases, you might qualify to deduct up to $2,500 in interest payments annually.\nBut again, check with the lender to see if it offers personal loans for educational expenses, and compare personal loan offers to actual student loans. Most people take out student loans because they offer lower interest rates and are eligible for special forgiveness and repayment programs.\nThere's also an itemized deduction for investment interest if you borrow money to purchase investments that aren't tax exempt. For example, if you take out a loan to buy stocks, you may be able to deduct the loan's interest. You can only deduct up to the amount of investment income you had for the year, but you can roll over additional amounts to offset future years' investment income. END
 TITLE: Do You Have to Pay Income Taxes on Personal Loans? CONTENT: Prepare for Tax Time Throughout the Year\n----------------------------------------\nWhile you may only file one annual tax return, tax planning is a year-round process. Part of this involves knowing how your actions can increase your taxable income and corresponding tax bill, or lead to deductions that can lower your taxable income and payments. Personal loans generally don't play a large role in tax planning, as taking out and repaying a loan generally won't impact your taxes. Still, keep exceptions in mind, especially if one of your debts is forgiven or discharged. END
 TITLE: Do I Have to Pay Taxes on a Cash-Out Refinance? CONTENT: What Is Cash-Out Refinancing?\n-----------------------------\nCash-out refinancing is a way to tap the progress you've made in paying off your home loan without doing something as drastic as selling your home. It replaces your existing mortgage with a new home loan that exceeds the amount that you owe on your house and gives you the difference.\nHere's an example:\nYour home is valued at $300,000.  \nYour mortgage balance is $175,000.  \nYour equity is the difference between those amounts, or $125,000.  \nYour new loan will likely be limited to 80% of the home's value, or $240,000.\nThe maximum amount you can get in cash is the difference between your new loan amount and your previous mortgage balance, or $65,000 in this example.\nYou can receive this cash in the form of a cash payment that you can spend on an array of needs, such as:\n*   Tackling a home improvement project\n*   Wiping out high-interest debt\n*   Funding a retirement account\n*   Paying college tuition\n*   Buying an investment property\n*   Purchasing a second home END
 TITLE: Do I Have to Pay Taxes on a Cash-Out Refinance? CONTENT: Tax Implications of Cash-Out Refinancing\n----------------------------------------\nThe cash you collect from a cash-out refinancing isn't considered income. Therefore, you don't need to pay taxes on that cash. Instead of being considered income, a cash-out refinance is simply a loan.\nDepending on how you spend the money from a cash-out refinance, you might even be eligible for a tax deduction. For example, you're allowed to deduct the interest on the original loan if money from the cash-out refinance goes toward permanent improvements that boost the value of your home. Those improvements could be:\n1.  Putting in a swimming pool.\n2.  Adding a bedroom.\n3.  Installing a home security system.\n4.  Upgrading the heating and air conditioning system.\n5.  Replacing outdated windows.\nYou also can deduct all of the costs associated with buying points to lower the interest rate of the cash-out refinance.\nHowever, you cannot claim any tax deductions if you spend the money from the cash-out refinance on:\n*   Repairs, repainting and other work that doesn't increase the home's value.\n*   Consolidating debt, going on a cruise or anything else that's not tied to a home improvement project. END
 TITLE: Do I Have to Pay Taxes on a Cash-Out Refinance? CONTENT: How Do You Qualify for a Cash-Out Refinance Loan?\n-------------------------------------------------\nTo get a cash-out refinance loan, you'll need to have enough equity in your home. In most cases, a lender will consider you for a cash-out refinance if you have equity of at least 20%.\nTo figure out whether you qualify, a lender will look at the loan-to-value ratio. This ratio is calculated by dividing the amount you owe on your mortgage by the value of your home. So, if the mortgage balance is $160,000 and the value of your home is $200,000, the loan-to-value ratio is 80%. An 80% ratio translates into 20% equity, which would meet the equity requirements of most cash-out lenders. END
 TITLE: How to Get a Business Loan CONTENT: How Do Business Loans Work?\n---------------------------\nLenders offer a variety of business loan options designed for different business needs. For example, you can find loans to use for purchasing equipment, financing expansion, buying commercial real estate or providing working capital. Business loans include:\n*   Bank loans\n*   U.S. Small Business Administration (SBA) guaranteed loans\n*   Business lines of credit\n*   Equipment loans\n*   Invoice financing or accounts receivable financing\n*   Merchant cash advances\nBusiness loans may come in the form of installment loans or revolving credit. Revolving credit, such as business lines of credit, lets you borrow up to a set limit and either pay off your balance each month or carry it over (\"revolve\" it). As you repay the loan, you can borrow against up to the limit again with no need to get reapproved. With installment loans, you borrow a lump sum of money and repay it over time by making fixed monthly payments.\nShort-term business loans are designed for short-term purposes, such as providing working capital to buy inventory. They typically last for six to 24 months. Long-term business loans usually last three years or more.\n_Secured_ business loans require you to put up collateral; if you can't repay the loan, the lender takes your collateral. _Unsecured_ loans don't require collateral, so they're easier to get; however, they carry higher interest rates than secured loans.\nBusiness loans are available from a variety of sources, including banks, credit unions, nonprofit or community organizations and online lenders. END
 TITLE: How to Get a Business Loan CONTENT: Steps to Getting a Business Loan\n--------------------------------\nTo find the right business financing source for you and get the loan you need, follow these steps.\n1.  **Figure out how much money you need.** When a lender asks, \"How much money do you want to borrow?\" the correct answer is not \"As much as you'll give me!\" Lenders want to see that you've carefully thought through your business goals, know how much you need to achieve them and have a specific plan to use the money wisely. Whether your goal is to open a second location or buy new machinery, run the numbers to see how much it will cost. Also calculate how loan repayments will affect your business budget going forward.\n2.  **Decide what type of loan best fits your needs.** Once you know how much money you need, figure out what kind of loan suits your purpose. The most common kinds of business loans are:\n*   **Bank loans**: These installment loans are repaid in fixed monthly payments. They can be short-term loans (generally six to 24 months) or long-term loans (typically three years and up). Secured loans tend to offer lower interest rates than unsecured loans.\n*   **SBA guaranteed loans**: The SBA, a government agency that helps small businesses, doesn't make loans itself. It partners with selected lenders, including banks, credit unions and nonprofit organizations, to guarantee a portion of the loans they make to small businesses. The guarantees make lenders more willing to take a chance on small businesses.\n*   **Microloans**: Do you need a smaller amount than a bank will lend? Then a microlender, who focuses on small loans, might be your best bet. SBA-guaranteed microlenders offer loans up to $50,000. Other nonprofit organizations offer microloans, often to disadvantaged business owners or businesses with goals that align with the nonprofit's mission.\n*   **Equipment loans**: If you need to buy equipment or machinery, consider an equipment loan. These loans use the equipment itself as collateral (similar to a car loan) and are paid in fixed monthly installments. You can get equipment loans from banks, specialized equipment loan companies or directly from equipment manufacturers.\n*   **Business line of credit**: Similar to a home equity line of credit, a business line of credit lets you borrow up to a set credit limit. As you repay the loan, the funds become available to borrow again. If your customers take a long time to pay you, a business line of credit can help ensure you don't run out of working capital while waiting for the payments to come in.\n*   **Accounts receivable financing**: Also called invoice financing, this type of loan uses your business's receivables as collateral. The lender advances you money based on your outstanding invoices. You get the money right away without waiting for customers to pay you. Once customers do pay, you'll get the remaining percentage of the invoice, minus the financing company's fees and interest.\nWhen weighing your options, find out what criteria the lender uses when evaluating your loan application. For example, if a bank loan requires three years of business tax returns and you've only been in business for six months, you'll need to look elsewhere.\n5.  **Check your credit scores.** There are two types of credit scores: business and personal. A business that's just starting out won't have much of a credit history. If it's a sole proprietorship, lenders might focus on your personal credit score when considering your loan application. Once you've been in business a while, your personal credit score won't matter as much, but it's still a factor in the loan decision. Before you start the loan process, get a business credit report and a free personal credit report and address your trouble spots. Getting your credit scores in tip-top shape before you apply for a business loan will help to boost your chances of success. Even if you have bad credit, don't despair.\n6.  **Put together the required documents.** Once you know where you plan to apply for a loan, check with your lender to find out what documents and information you'll need to provide for the loan application. Banks generally have the most stringent requirements: They may ask for your business's financial statements (income statement, balance sheet and cash flow statement); three to five years' worth of financial projections; business bank statements; business tax returns; leases and business licenses. They'll also expect to see a written business plan. While other lenders may not require as much documentation, you should be prepared with whatever information the lender requests.\n7.  **Assess the value of your collateral.** Putting up collateral will make it easier to get a business loan and help you get better terms. Business collateral includes equipment, vehicles, machinery, real estate, inventory or accounts receivable. If your business has no collateral, you may need to use personal assets as collateral. Personal collateral may include vehicles, valuables such as jewelry or fine art, savings or retirement accounts, and your home. Be very careful about pledging personal collateral; don't risk anything you aren't willing to lose.\n8.  **Shop around for the best business loan terms.** If you're already in business, your business bank is a good place to start—but don't end there. Check out several lenders to compare loan terms. Factors to consider include the annual percentage rate (APR), amount and term of the loan, fees, penalties and how quickly the loan will go through. Consider the total cost of the loan and make sure the monthly payment fits your budget.\n9.  **Apply for a business loan.** Depending on the lender, it can take weeks or even months to get a loan approved, so don't wait until the last minute to complete your application. Find out what documents the lender needs and have them ready. Missing or incomplete information can delay your loan approval, so review your application package to make sure you've included all the necessary information. END
 TITLE: How to Get a Business Loan CONTENT: When Is It a Good Time to Take Out a Business Loan?\n---------------------------------------------------\nIt's been said that the best time to get a business loan is before you need it. Having strong sales and healthy cash flow boosts your odds being approved for a business loan. If you don't need capital now but know you will need it in a year or so, now is the time to start researching loan options.\nGood reasons to get a business loan include:\n*   To buy assets that will add long-term value to your business or help to increase your revenues. Paying cash for equipment, machinery or real estate ties up funding you need to run your business. As long as the purchases are good investments, using a business loan to buy them makes sense.\n*   To expand your business. Using a loan can help you finance expansion without draining working capital from the business.\n*   To better manage cash flow. If you have customers who take 60, 90 or even 120 days to pay you, or you're in a seasonal industry with predictable slumps, a business line of credit or invoice financing can help you meet your working capital needs.\n*   To help build your business credit score. Getting a business line of credit and using it responsibly can help a new business build a business credit history. Just make sure that the lender reports your payments to the major business credit bureaus: Experian, Equifax and Dun & Bradstreet. END
 TITLE: How to Get a Business Loan CONTENT: When You Might Want to Wait Before Taking Out a Business Loan\n-------------------------------------------------------------\nTaking out a business loan isn't always a good idea. You should avoid taking out a business loan in the following situations:\n*   **When you've maxed out your current lines of credit.** Using all or most of your available credit raises your credit utilization ratio, potentially negatively affecting your credit score. Lower credit scores make it harder to get approved for a business loan, so take steps to pay down your existing debt before taking on more debt.\n*   **When the loan terms don't suit your needs.** If you can't find a loan with the terms you want, you're probably better off hitting the pause button. Spend some time improving your business and personal credit scores, then apply again to see if you can get terms that are more favorable.\n*   **When you're trying to salvage poor financial management.** It's normal for cash flow to rise and fall in business, but if your business has continual cash flow problems, a business loan is not the solution. Without adequate cash flow, you're unlikely to be approved for a business loan. Even if you are approved, you'll probably pay high interest rates and may have trouble repaying the loan, causing an even bigger cash crunch. END
 TITLE: How to Get a Business Loan CONTENT: Alternatives to a Business Loan\n-------------------------------\nIf you can't qualify for a business loan, investigate these options for borrowing the money you need.\n*   **Business credit card**: If you don't need a lot of money, a small business credit card could be the answer. Getting a business credit card has other benefits: It can help you keep personal and business finances separate; may offer business-related rewards; and may have useful features to manage your money, such as tools to categorize spending. For new businesses, using a business credit card responsibly helps to build a business credit history, which can make it easier to get business loans in the future.\n*   **Personal loan**: Personal loans are generally easier to get than business loans and are available in smaller amounts. You're likely, however, to pay more interest than you would for a business loan. Late or missed payments will hurt your personal credit score, and commingling business and personal finances could cause problems for your business come tax time.\n*   **Peer-to-peer lending**: Peer-to-peer lending sites such as Prosper and Lending Club serve as middlemen for those who want to borrow and lend money. You apply for a personal loan, which is funded by money pooled from individual lenders. If your credit score is too low to qualify for a peer-to-peer loan, consider a lending circle such as the Mission Asset Fund. Lending circles are small groups of individuals who pool their money and lend it to each member of the group in turn.\n*   **Individual lenders**: Do you have friends or family members who can afford to lend you money? You may be able to get better loan terms from them than from a bank. Just be sure to treat the loan as seriously as a bank loan: Draw up a loan agreement, make your payments on time and pay the loan in full. END
 TITLE: How to Get a Business Loan CONTENT: A Loan at Last\n--------------\nThe proceeds from a business loan can help your business survive a slow season, buy essential equipment or expand across the globe. Whatever your purpose, getting a business loan shouldn't be taken lightly. Before you apply for a loan, do your homework. Identify your business goals and how financing can help you achieve them. By taking the time to research the right loan option for your business, you'll improve your odds of getting the money you need. END
 TITLE: Do Taxes Affect My Credit Score? CONTENT: What Happens to Your Credit When You Don't Pay Taxes?\n-----------------------------------------------------\nCredit scores are based on information in the credit reports compiled at the national credit bureaus (Experian, TransUnion and Equifax). These reports reflect your history of borrowing and repaying loans and also note certain legal proceedings, such as bankruptcy filings and foreclosures. Your credit reports don't track tax bills or payments, so your record of paying taxes on time, or failing to do so, does not factor into the calculation of your credit score.\nFailure to pay your income tax can lead to a federal tax lien against your property. A lien entitles the IRS to take whatever unpaid taxes you owe (plus penalties and interest) from the proceeds of the sale of your property.\nTax liens haven't appeared on credit reports since 2018, so they cannot lower your credit scores, but tax liens can still damage your credit: Lenders can discover tax liens through public records searches when considering applications for mortgages or other loans. Some lenders may consider a tax lien grounds for denying your application. END
 TITLE: Do Taxes Affect My Credit Score? CONTENT: How Paying Your Taxes Affects Credit Score\n------------------------------------------\nIf you pay your taxes with a credit card or personal loan, those transactions will be recorded in your credit reports, and they will be reflected in your credit scores. END
 TITLE: Do Taxes Affect My Credit Score? CONTENT: The Bottom Line\n---------------\nWhile paying taxes has no direct bearing on your credit scores, using credit to cover your tax payment can affect your credit indirectly, and failure to pay your taxes not only gets you in trouble with the IRS, it also jeopardizes your ability to get credit. END
 TITLE: Who Qualifies as a Dependent for Taxes? CONTENT: How Do I Know if I Can Claim Someone as a Dependent?\n----------------------------------------------------\nTo start, there are a few basic requirements that need to be met to claim someone else as a dependent:\n*   No one else can claim you, or your spouse if you're filing a joint return, as a dependent. Even if the person chooses not to claim you as a dependent, the fact that they could makes you ineligible.\n*   You generally can't claim anyone who is married and files a joint return. However, there are exceptions if the person only files a joint return to get back income taxes that were withheld from paychecks or estimated tax payments.\n*   The person you're claiming must be a U.S. citizen, resident alien (which can include undocumented residents), U.S. national, or resident of Canada or Mexico. There are also some exceptions for adopted children who lived with you in the U.S.\nThese general rules apply to everyone. Additionally, the person you're claiming must meet all the requirements to be your qualifying child or qualifying relative. END
 TITLE: Who Qualifies as a Dependent for Taxes? CONTENT: The Two Types of Qualifying Tax Dependents\n------------------------------------------\nChildren and relatives can qualify as tax dependents—but their definitions are broader than you may suspect.\nIn addition to your birth child or an adopted child, your foster child, siblings, half-siblings and step-siblings (along with all the siblings' descendants) can be qualifying children. And your son-in-law, mother-in-law, parents, grandparents and in-laws could all be qualifying relatives.\nA person doesn't even need to be a relative to count as a qualifying relative. A girlfriend, boyfriend or roommate could be your dependent as long as the person is a member of your household for the entire year and meets all the other requirements.\nThe IRS' Publication 17, chapter 3, has a complete list of which relationships can qualify someone as a child or relative for dependent purposes.\nIn addition to the relationship requirement, the qualifying child or qualifying relative has to pass a series of \"tests.\"\n### Qualifying Children\nThere are four tests for qualifying children:\n1.  The child must be 19 or younger at the end of the tax year and younger than you (and your spouse if you file a joint return). Qualifying children can be up to 24 years old if they're also full-time students for at least five months of the year, or they can be any age if they're permanently and totally disabled.\n2.  The child has to live with you for at least half the year. There are exceptions for temporary absences, such as when you or the child are away from home for school, business, vacation or military service.\n3.  The child can't provide more than half of his or her own support during the year (scholarships don't count as support).\n4.  The child can't file a joint tax return unless the only reason for filing is to get back the taxes that were withheld from his or her pay or were part of estimated tax payments.\nThe rules for who can claim a qualifying child can get fairly complex when both parents can claim the child as a dependent but they aren't married, or they file their tax returns using the married filing separately status.\nSome parents switch off, letting one person claim the child one year and the other parent claim the child the next. The IRS also has an official series of tiebreaker rules (see page 30 of Publication 17) to determine who can claim the child if you can't come to an amicable agreement.\n### Qualifying Relatives\nThere are three additional tests for your qualifying relatives:\n1.  The person can't be anyone's qualifying child.\n2.  The person's gross income must be below $4,150. Income could include money, property, goods or services they received, and it may include Social Security benefits. However, there are exceptions for people with disabilities who received income from certain tax-exempt schools.\n3.  You have to provide more than half of the person's support for the year.\nIf working through all the tests sound like too much work, you could also try the IRS' interactive tool, which can help you determine if you can claim someone as a dependent. END
 TITLE: Who Qualifies as a Dependent for Taxes? CONTENT: Preventing Tax Time Identity Theft\n----------------------------------\nWhether you're claiming a child or relative as a dependent, let the tax season also be a reminder about the importance of keeping your personal information secure. Unfortunately, identity theft and the tax season can go hand-in-hand, as thieves may try and claim your tax refund for themselves.\nSome scammers may even go after children's personal information and attempt to take out a loan or open a credit card in the child's name. Experian offers a credit report check for minors that lets you see if your child has an Experian credit file. If one is found, that could be an indication of identity theft.\nIf you don't find anything, that's a good thing. But you can still take proactive preventive measures by freezing your child's credit file for free, which can help prevent someone from using your child's identity to open an account. END
 TITLE: Can Not Paying or Delaying My Taxes Hurt My Credit? CONTENT: How Unpaid Taxes Impact Your Credit\n-----------------------------------\nUnpaid taxes don't have a direct impact upon your credit anymore. This hasn't always been the case. Prior to April of 2018, tax liens were commonly included on credit reports with all three credit reporting agencies—Experian, TransUnion and Equifax.\nNow that tax liens no longer show up on credit reports, they don't have any direct influence on your credit scores either. Even so, unpaid taxes can still cause you a lot of problems. END
 TITLE: Can Not Paying or Delaying My Taxes Hurt My Credit? CONTENT: Ways Not Paying Your Taxes Could Hurt You\n-----------------------------------------\nYou could face serious financial consequences if you fall behind on your taxes. As you'll see, some of these issues might harm your credit in an indirect way.\n### You'll End Up Paying More\nLike most other bills, your taxes have a due date. That due date is generally April 15. If you owe an outstanding balance to the federal government and you can't pay it by this deadline, you may be charged a penalty for not paying all of your taxes on time. To make matters worse, the IRS will typically charge you interest on top of your unpaid taxes and penalty fees.\nPaying extra money in penalties and interest because you sent in your tax payment late could make it more challenging to keep up with the rest of your bills. If this happens, and if you fall behind on any credit obligations as a result, your late tax payment could indirectly have a negative impact upon your credit. Payment history is the most important factor in your credit score, counting for about 35% of your score, so late credit payments reported by your creditors can damage your credit quickly.\nOf course, late payments aren't the only risk to your credit when you become overextended financially. High credit card balances may also be problematic if they cause your balance-to-limit ratio, also known as credit utilization ratio, to increase.\nYour credit utilization ratio typically counts for about 30% of your credit score, so a high utilization rate of 30% or more can negatively affect your credit, even if you make your monthly payments on time. High utilization can be a sign to creditors that you're using too much credit and may be more likely to make late payments.\n### You Might Have Trouble Qualifying for a Loan\nYour credit reports don't show tax liens anymore, but that doesn't mean a tax lien can't cause you problems if you apply for a loan. In particular, when you apply for a mortgage, your lender may perform a public records search to find out whether you have any outstanding judgments or tax liens filed against you.\nYour best bet is to pay off your tax lien before you apply for a mortgage. Can't afford to pay the lien in full? Setting up a payment plan with the IRS might be enough to satisfy some lenders, if you can prove that you've made a sufficient number of consecutive payments.\nKeep in mind, if you set up a payment plan to pay your taxes, your lender will add your monthly payment to the IRS into your debt-to-income calculations. This means those lien payments could reduce the size of the home loan you qualify to receive. END
 TITLE: Can Not Paying or Delaying My Taxes Hurt My Credit? CONTENT: Don't Ignore the Problem\n------------------------\nIf you have a tax bill that you can't afford to pay, ignoring the problem isn't the answer. In fact, as penalties and interest continue to climb, pretending like your tax bill doesn't exist will only make your situation worse.\nInstead, consider reaching out to the IRS to discuss payment plans and other tax relief options. If your credit is in decent shape, you might even be able to qualify for a personal loan to cover your tax bill at a lower interest rate than the IRS would charge.\nRemember, even if unpaid taxes don't hurt your credit, they can still make your life a lot more stressful. Addressing your tax issues head on, either on your own or with the help of a reputable tax professional, is your best move. END
 TITLE: How Does Tax Relief Work? CONTENT: What Is Tax Relief?\n-------------------\nTax relief really means setting up a payment plan or negotiating a settlement with the IRS—it's not about erasing your tax obligation. Rather, it's about making it easier to take care of the tax debt you owe.\nVictims of natural disasters, such as hurricanes and wildfires, are sometimes offered special tax relief as well. Disaster victims may qualify for deadline extensions and may be eligible to claim casualty losses on their federal income tax returns. You can learn more about special tax relief on the IRS' website. END
 TITLE: How Does Tax Relief Work? CONTENT: Ways to Get Tax Relief\n----------------------\nWhen it comes to strategies for managing taxes you can't afford to pay in full when they're due, you have several options. Below are four methods to consider.\n*   **IRS Repayment Plan**  \n    The IRS may allow you to break down your full balance into smaller payments. To qualify for a long-term payment plan (paying over 120 days or longer), you need to owe $50,000 or less in combined taxes, penalties and interest. For a short-term payment plan of 120 days or less, your tax bill can be as high as $100,000.Although IRS payment plans can be helpful if you don't have the funds to cover your tax bill in full, they come with a cost. Depending on the option you choose, you may pay a setup fee of up to $149 plus penalties and interest until your balance is completely paid.\n    Need more information about IRS repayment plans? This IRS FAQ page may help.\n*   **Offer in Compromise**  \n    If you're struggling to pay your full tax bill, the IRS might allow you to settle your tax debt for less than you owe through what is known as an offer in compromise. Per the IRS, an offer in compromise \"may be a legitimate option if you can't pay your full tax liability, or doing so creates a financial hardship.\"When reviewing your application for an offer in compromise, the IRS will consider factors such as:\n    *   Your ability to pay\n    *   Your income\n    *   Your expenses\n    *   Your assets\n    To see if you qualify to settle your tax bill for less, check out the IRS Offer in Compromise page. You can also use the Offer in Compromise Pre-Qualifier online to confirm your eligibility and prepare your preliminary proposal.\n*   **Penalty Relief or Interest Abatement**  \n    There's a chance you may qualify for penalty relief from the IRS. This means that the IRS forgives the penalties you've been charged on your tax bill if you meet certain criteria, such as not having any penalties for the past three tax years or paying or arranging payment for any taxes owed. You will still owe your taxes even if you qualify, but your overall debt will be lower once the penalties are removed from your outstanding balance. For more information, check out the IRS guide on penalty relief.Interest abatement, or forgiveness on the interest you owe toward unpaid taxes, may be available as well, but it's rare.\n*   **Personal Loan**  \n    Another option to consider if you don't have the funds available to pay your tax bill is taking out a personal loan. Determine whether you can secure a personal loan for less than an IRS payment plan offer before going this route. If you do opt to use a personal loan to pay for your tax obligation, research loan rates and terms and make sure you're getting the best rate available. It can also be helpful to check your credit reports before you apply to know what lenders will see when they review your application. END
 TITLE: How Does Tax Relief Work? CONTENT: What About Tax Relief Companies?\n--------------------------------\nTax relief companies regularly use the internet, radio and television to advertise their services to struggling taxpayers. Essentially, tax relief companies work by negotiating with the IRS on your behalf—for a fee. That fee can reach into the thousands of dollars, with no guarantee that they'll be any more successful than you'd be if you negotiated with the IRS on your own.\nIf you hire a reputable tax relief company to work on your behalf, they may contact the IRS to try to negotiate an offer in compromise, installment agreement, or penalty or interest abatement.\nIf you prefer to have a third party represent you, make sure you hire a reputable and qualified tax professional. The Federal Trade Commission (FTC) cautions that only certain tax professionals have the authority to represent you with the IRS. These include:\n*   Enrolled agents (federally authorized tax practitioners who can represent taxpayers before the IRS)\n*   Certified Public Accountants (CPAs)\n*   Attorneys\nWhen hiring a third party to represent you, be on the lookout for high upfront fees, unfavorable refund policies, and default billing rates that kick in if you decide to cancel.\nFurthermore, the FTC recommends that you meet face-to-face with any tax professional you're considering hiring. Ask them to explain your options and the company's fee structure in detail before you pay anything or sign an agreement. END
 TITLE: How Does Tax Relief Work? CONTENT: Preventing Tax Identity Theft\n-----------------------------\nIn addition to taking care of your outstanding tax obligations, it's also important that you be on alert for any signs of tax-related identity theft. If you've ever lost your wallet, had your mail stolen, or had personal information compromised in a data breach, you may be at risk.\nTo help protect your identity at tax time, here are a few best practices to follow:\n*   Keep your Social Security card and any documents containing your Social Security number in a safe place. (It's better not to carry these documents around with you.)\n*   Don't give out your personal information, such as Social Security number, date of birth and so on, over the phone or online unless you initiated the contact and you know you're communicating with a reputable organization.\n*   Consider requesting an Identity Protection PIN from the IRS, if you're eligible.\nFor more information, see \"Protecting Yourself From Tax Time Identity Theft.\" And, if you think you might be a victim of tax identity fraud, see \"What to Do if You're a Victim of Tax Identity Theft.\" END
 TITLE: How Does Tax Relief Work? CONTENT: How Do Unpaid Taxes Affect My Credit?\n-------------------------------------\nIf you're worried about the tax bill you owe the federal government hurting your credit scores, don't be. Tax liens are no longer included on your credit reports. This means they will not have an influence upon your ® Score or VantageScore®.\nYou should be aware, however, that just because tax liens are missing from your reports doesn't mean they can't cause you problems when you apply for a loan or other types of financing. Some lenders may check public records reports, and your unpaid tax liens could show up there. In addition, if your tax payments affect the rest of your financial picture and cause you to get behind on other bills, your credit scores could be affected. END
 TITLE: How Does Tax Relief Work? CONTENT: The Value of Being Proactive\n----------------------------\nRemember, trying to hide from your tax bill won't help you. In fact, as interest and fees continue to pile up, you'll only make your tax problem worse by trying to ignore it.\nBe proactive, file your taxes, and reach out to the IRS to see which options you have available. You can consult with a reputable tax professional if you feel overwhelmed, but also know you have the right to reach out to the IRS on your own. END
 TITLE: How the New Tax Law May Affect You CONTENT: What's in the Tax Reform Bill?\n------------------------------\nThe Tax Cut and Jobs Act, passed at the end of 2017, was a major overhaul of the tax code. It took away personal exemptions and increased the standard deduction, while also increasing the child tax credit and adding other breaks.\nSome of the implemented changes are bigger or more meaningful than others. Here's how the biggest changes could impact your return.\n### Income Tax Rates\nIncome tax is how the government makes most of its money. How much you pay in taxes comes down to the updated rates. The federal income tax rate will now be:\n**Marginal Rate**\n**Individual with Taxable Income Over**\n**Filing Jointly with Taxable Income Over**\n10%\n$0\n$0\n12%\n$9,525\n$19,050\n22%\n$38,700\n$77,400\n24%\n$82,500\n$165,000\n32%\n$157,500\n$315,000\n35%\n$200,000\n$400,000\n37%\n$500,000\n$600,000\n### Alternative Minimum Tax\nThe Alternative Minimum Tax, or AMT, was created in the 1960s to make sure high-income earners paid enough in taxes. With the AMT, higher earners have to calculate their tax liability twice: once under the regular tax rate and once under the AMT, then pay whichever is more.\nUnder the new law, the AMT exemption increased to $109,400 for joint filers, $54,700 for married couples filing jointly and $70,300 for other individual taxpayers. That exemption is the amount you can deduct before calculating your AMT liability.\nThe law also increased the phase-out of the exemption from $160,900 to $1 million for joint filers. The IRS estimates AMT filings will go from 10 million households to 1 million, according to the Tax Foundation.\n### Capital Gains Rates\nLong-term capital gains used to be calculated by income tax brackets, but the tax law got rid of that setup. Now the brackets look like this:\n**Rate**\n**Single Filers with Gains Over**\n**Joint Filers with Gains Over**\n0%\n$0\n$0\n15%\n$38,600\n$77,200\n20%\n$425,800\n$479,000\n### Child Tax Credit\nFor 2018, the child tax credit doubles from $1,000 to $2,000 per child 17 years of age and younger. The refundable portion, which is what you would receive if you were getting a refund, is $1,400.\nAlso, the phase-out income level increased from $110,000 for married couples filing jointly to $400,000, allowing more families to claim the credit.\n### Personal Exemptions\nBefore the new tax law, filers could claim an exemption for themselves, their spouses and dependents. With the Tax Cuts and Jobs Act, there are no more personal exemptions.\nInstead, the new law expanded the child tax credit and the standard deduction.\n### Miscellaneous Expenses\nIf you've ever moved, you were able to claim moving expenses as a deduction on your taxes. But the new law has removed moving-related expenses.\nJob-related expenses, such as uniforms, traveling for work and business-related meals, are no longer allowed to be written off either. Before, you could itemize these deductions on your tax return. END
 TITLE: How the New Tax Law May Affect You CONTENT: What Does the New Tax Law Mean for Me?\n--------------------------------------\nDepending on your income level, family and other factors, your tax return could see a bigger return—or a bigger bill. In some situations, certain changes can work to cancel each other out, although not always entirely.\nLarge families, for instance, will lose big deductions in the form of personal exemptions but can take advantage of a larger child tax credit, which offers a dollar-for-dollar reduction of your tax bill.\nIt's important to understand your particular situation to get an idea of how the new law has affected you. If you receive a smaller refund this year, it may simply be because you had less tax withheld in 2018. But it can also mean that you also lost some other important tax breaks.\nIf you're not sure exactly what the new tax law means for you, consider working with a tax professional to get a deeper look at your situation. END
 TITLE: How the New Tax Law May Affect You CONTENT: How Do Taxes Impact My Credit Report?\n-------------------------------------\nIn 2017, the three major tax bureaus—Experian, TransUnion and Equifax—took steps to remove civil judgment records, including tax liens, from credit reports.\nA tax lien is when the government can lay claim to your property when you fail to pay the IRS. Even if you paid the debt, it could stay on your credit report for up to seven years. While the IRS can still place liens on your property, they'll no longer negatively affect your credit. END
 TITLE: How the New Tax Law May Affect You CONTENT: Next Steps\n----------\nWhether or not you've already filed your 2018 tax return, it's important to know how the recent tax reform can affect you. Consider working with a tax professional to get a better understanding of what changes impact you and how. END
 TITLE: What Is UltraFICO and How Do I Use It? CONTENT: How Does UltraFICO™ Work?\n-------------------------\nThe UltraFICO™ Score began a pilot program in 2019 under a partnership between FICO®, Experian and Finicity. The credit scoring model adds a new dimension to the process of determining credit risk: how you manage your money.\nWith the UltraFICO™ Score, you grant permission for Finicity to review data from your checking, savings and money market accounts if you've applied for a loan and been denied.\nFactors include:\n*   How long your accounts have been open\n*   The frequency and recency of your bank account transactions\n*   Evidence of cash on hand\n*   A history of positive account balances\nFICO® then takes this information, along with your Experian credit file, to provide you with your UltraFICO™ Score.\nIn other words, the UltraFICO™ Score builds on the foundation of the base FICO® Score☉ —including factors like your payment history, how much you owe, your length of credit history, credit mix and recent inquiries—then it adds data from your bank accounts to provide a more well-rounded view of your financial behavior. END
 TITLE: What Is UltraFICO and How Do I Use It? CONTENT: Who Benefits the Most From the UltraFICO™ Score?\n------------------------------------------------\nThe UltraFICO™ Score model has the potential to help improve the credit score of the majority of Americans. However, the people who may benefit the most from this scoring model include those with credit scores in the upper 500s to the lower 600s.\nThose with scores in this range fall short of many lenders' minimum credit score requirements, but the UltraFICO™ Score can make it less challenging to access credit with favorable terms if a borrower's overall financial habits are strong.\nIt can also benefit people who are relatively new to credit and have a limited credit history. These people often have to deal with the Catch-22 of not having access to good credit without a strong credit history, and having a tough time building their credit history without access to good credit.\nFinally, the UltraFICO™ Score can be a lifeline for people who have experienced financial distress in the past but are working to get back on their feet. That includes anyone who has experienced financial hardship stemming from unemployment, divorce, bankruptcy, medical bills and more. END
 TITLE: What Is UltraFICO and How Do I Use It? CONTENT: How to Sign Up for UltraFICO™\n-----------------------------\nAs of May 2020, the UltraFICO™ Score service is available only through a small group of lenders as part of the pilot program. Once this phase has been completed, it will become available more broadly for consumers to register and get a score of their own.\nIf you want to be notified when the service becomes more widely available, visit FICO.com\/UltraFICO to submit a request. You'll need to provide your:\n*   Full name\n*   Email address\n*   Employer and job title\n*   Phone\nYou'll also list whether you're requesting information for yourself or your company.\nHere's how the process works: If you've been denied or offered less-than-ideal terms by a participating lender, you may be able to opt in to the service and link your bank accounts. Your banking data will then be used to generate an UltraFICO™ Score in real time, which the lender can then use to revise its offer based on the new score.\nKeep in mind that your UltraFICO™ Score and your FICO® Score are two different scores, and requesting the former won't impact the latter. You can opt out of providing permission to use your bank account activity at any time. END
 TITLE: What Is UltraFICO and How Do I Use It? CONTENT: Other Ways You Can Boost Your Credit Score\n------------------------------------------\nWhile the UltraFICO™ Score isn't yet widely available, you don't have to wait for an opportunity to improve your credit score.\nExperian Boost™† is a tool that allows you to use positive payment history with your utility and telecom providers to increase your FICO® Score instantly. Simply register and link your bank accounts, then identify the payments you want to add to your Experian credit file. The FICO® Score that's based on your Experian credit file will be updated immediately to reflect your positive payment history.\nYou can also improve your credit score by continuing to build your record of good debt management. Doing the following can have a positive impact on your credit scores:\n*   **Always pay on time.** Your payment history is the most important factor in your credit score, so make it a goal to pay your bills on time every month. If you're behind on any payments, try to get caught up as quickly as possible.\n*   **Keep credit card balances low.** Even if you pay off your credit card in full every month, try to keep your balance relatively low. And if you carry a balance month to month, paying down your credit card debt can be the wise move.\n*   **Avoid unnecessary credit.** Every time you apply for credit, a hard inquiry gets added to your credit reports. Hard inquiries can temporarily ding your score, so avoid applying for new loans or credit cards unless you legitimately need them. If you're denied, take time to find out why and address the problem before you apply again. Your lender must provide an \"adverse action notice\" if your application is declined or you do not receive the best terms available. The notice will give you a great start on determining what you need to do to improve your credit scores.\n*   **Get added as an authorized user.** If you have a family member with a positive payment history on their credit card account, ask if you can be added as an authorized user. The account's full history will be added to your credit history even if you don't use the card to make purchases.\nIt can take time for these actions to have an impact on your credit score, but developing and maintaining positive credit habits can help you achieve those long-term goals like financing a car or buying a house. END
 TITLE: What Is UltraFICO and How Do I Use It? CONTENT: Monitor Your Credit Regularly to Stay Financially Fit\n-----------------------------------------------------\nEven if you don't plan to apply for credit anytime soon, having good credit is crucial. That's because many auto and homeowners insurance companies use your credit history to help determine your rates, and your credit can also impact your ability to rent an apartment or home, or even get a job (although employers will never receive a credit score).\nExperian's credit monitoring service not only offers complimentary access to your FICO® Score powered by Experian data, but it also provides you with information about your spending and real-time alerts about new inquiries and accounts.\nAs you monitor your credit regularly, you'll be able to see better how your actions impact your credit score, and you can keep track of your progress. You'll also be better equipped to address potential inaccuracies and fraud quickly and effectively. END
 TITLE: Identity Theft Statistics CONTENT: The Identity Theft Resource Center (ITRC) recently announced its 2017 Data Breach report and it's no surprise that breaches are up.Last year there were 1,579 data breaches exposing nearly 179 million records.That represents a 44% increase in the number of breaches and a 389% increase in records exposed.\nEmbed\nThe IRTC report also stated that the number of credit card numbers exposed in 2017 totaled 14.2 million, up 88% over 2016. In addition, nearly 158 million Social Security numbers were exposed in 2017, an increase of more than eight times the number in 2016.\nEmbed\nIdentity theft is one of the most common outcomes from data breaches. 31.7% of breach victims in 2016 later experienced identity fraud, compared to just 2.8% of individuals not notified of a data breach in 2016, according to Javelin.\nThe Federal Trade Commission's Consumer Sentinel Network Report stated that **identity theft accounted for 13.87% of all consumer complaints in 2017**.\nAlso, according to a survey conducted by Experian, as of August 2017 most Americans were worried their information could be stolen, as 73% said they are very or somewhat concerned their email, financial accounts or social media info could be hacked, up from 69% in a similar survey conducted in 2015. END
 TITLE: Identity Theft Statistics CONTENT: Types of Identity Theft\n-----------------------\nCredit card fraud was the most common form of identity theft (133,015 reports), followed by employment or tax-related fraud (82,051 reports), phone or utilities fraud (55,045 reports), and bank fraud (50,517 reports) in 2017, according to the FTC.\nOther significant categories of identity theft reported by victims were loan or lease fraud (30,034) and government documents or benefits fraud (25,849 reports). Credit card fraud also increased 23% over 2016, overtaking employment or tax-related fraud as the most common.\nEmbed END
 TITLE: Identity Theft Statistics CONTENT: Fraud Statistics\n----------------\nConsumers reported $905 million in total fraud losses in 2017, a 21.6% increase over 2016. The with a median amount lost was $429.\n> Consumers reported $905 million in total fraud losses in 2017.\n*   21% of the consumers who reported a fraud-related complaint lost money. The most common method money was paid out was via wire transfer.\n*   64% of all fraud-related complaints reported the method of initial contact.\n    *   Of those complaints, 69.8% said the telephone and 9.7% said e-mail.\n    *   Only 5% of those consumers reported mail as the initial point of contact.\nEmbed END
 TITLE: Identity Theft Statistics CONTENT: At-Risk Age Groups\n------------------\nWhen it comes to scams, children and seniors are at the biggest risk.\n### Child Identity Theft\nThere were 13,852 identity theft complaints to the Federal Trade Commission in 2017 affecting children and teens (age 19 and under), which represents 3.89% of all identity theft complaints for the year. This is a slight decrease since 2016, but it's still a huge issue as many times this can go unnoticed since children or their parents aren't often checking a child's credit.\n> In 2017, there were 13,852 complaints of child and teen identity theft.\nExperian is alerted to 25,000-30,000 fraud cases reported each year and approximately 17% were targeted at children. Child identity fraud or theft will affect 25% of kids before turning 18.\n### Senior Identity Theft\/Senior Scams\nThe FTC also reported that 35% of fraud complaints and 18.9% of ID theft complaints impacted seniors (Americans who are 60 years or older) in 2017. Seniors can fall victim to scammers if they trust the wrong person, who may develop a relationship over time by preying on them over the phone or via email. END
 TITLE: Identity Theft Statistics CONTENT: Michigan is the state with the highest per capita rate of reported identity theft complaints. Florida, California, Maryland and Nevada rounded out the top 5 states where ID theft complaints were made according to the FTC. END
 TITLE: Identity Theft Statistics CONTENT: Fraud Statistics by State\n-------------------------\nApproximately 1.1 million complaints were fraud-related last year, and Florida is the state with the highest per capita rate of reported fraud and other types of complaints, followed by Georgia and Nevada. **Consumers reported paying over $744 million in those fraud complaints with the median amount paid at $450**. END
 TITLE: Identity Theft Statistics CONTENT: The Financial and Emotional Impacts of Identity Theft\n-----------------------------------------------------\nThe ITRC's latest _Aftermath_ study showed 27% of identity theft complainants reported they contacted law enforcement about the theft. Of those, 87% indicated a report was taken.\nHowever, identity theft has consequences beyond the loss of data and personal information—it can take a lot of time and money to resolve and can bring emotional distress. The statistics from the study show:\n*   26% of respondents had to borrow money from family or friends.\n*   22% took time off work.\n*   15.3% of respondents sold possessions to pay for expenses caused by their identity theft.\n*   6.7% obtained a payday loan.\n> 26% of survey respondents borrowed money from family or friends to deal with identity theft and 7% obtained a payday loan.\nEmbed\nWhen it comes to the emotional impact of identity theft, many feel annoyance about the fact that they have to spend so many hours dealing with the problem, often taking time away from work. These statistics about the emotional impact of identity theft:\n*   66% of respondents experienced fear regarding their personal financial security.\n*   53% felt a sense of powerlessness or helplessness.\n*   7% reported feeling suicidal. (If you're feeling suicidal for this or any other reason, please call the National Suicide Prevention Lifeline at 1-800-273-8255.)\n*   75% of identity theft victims reported that they were severely distressed by the misuse of their information.\n*   25% of respondents said they sought professional help to manage their identity theft experience—either going to a doctor for their physical symptoms, or seeking some kind of counseling (therapy, group therapy, or some kind of support in that manner for the emotional implications). END
 TITLE: Identity Theft Statistics CONTENT: Fraud and Identity Theft Statistics by Type\n-------------------------------------------\n### Credit Card Fraud\nMore than 32% of Americans complained about credit card fraud in 2016, double the rate from 2015, according to the Federal Trade Commission. Javelin Strategy reported that criminals stole $16 billion via identity fraud in 2016 and ecommerce fraud increased more than 30% in the first six-months of 2017 according to Experian.\n> More than 32% of Americans complained about credit card fraud in 2016, according to the FTC.\n### Holiday Shopping Fraud\nDuring the 2017 holiday season (Thanksgiving Day through December 31), online fraud attempts increased 22% over 2016, according to new benchmark data from ACI Worldwide. The number of eCommerce transactions grew by 19%.\nFraud attempts were highest on:\n*   **Thanksgiving Day**: 1.94%, up from 1.26% in 2016\n*   **Christmas Eve**: 1.78%, up from 1.48%\n*   **December 21** (the cutoff date for express shipments): 1.67%, up from 1.49%\n> During the 2017 holiday season, 1 out of every 85 transactions was a fraudulent attempt.\nDuring the 2017 holiday season, 1 out of every 85 transactions was a fraudulent attempt, compared to 1 out of every 97 transactions in 2016 and 1 out of every 109 transactions in 2015.\n### Imposter Scams\nImpostor Scams, when a scammer pretends to be someone you know and trust, moved up to be the number one complaint to the FTC in 2017. One in five people who were victims of an imposter scam lost money, totaling $328 million. For military consumers, imposter scams were the number one complaint category in the Consumer Sentinel Network Report, followed by telephone and mobile services at number two.\nEmbed\n### Mail Identity Theft\nMail identity theft is one of the oldest ways for a criminal to steal your personal information and according to the US Postal Service's Annual Report, it received over 60,000 complaints of mail theft in 2016, which resulted in over 2,000 convictions.\n### Medical Identity Theft\nMedical identity theft can be harder to discover than other types of ID theft because it happens when someone steals another person's identity to obtain medical services. More than 27% of data breaches in 2017 were medical or healthcare related according to the Identity Theft Resource Center.\n> More than 27% of data breaches in 2017 were medical or healthcare related.\n### Mortgage Fraud\nMortgage fraud occurs when a borrower, broker or an appraiser lies about information on the application for a mortgage loan. During the mortgage crisis, Experian estimated that first-party fraud—like loan stacking—may have accounted for more than 25% of all consumer credit charge-offs at the time.\n### Online Shopping Fraud\nOnline shopping fraud, or ecommerce fraud, occurs when a criminal leverages stolen payment information or fraudulently acquired bank or credit card accounts to make retail transactions without the account owner's knowledge.\nEcommerce fraud increased more than 30% in the first six-months of 2017 compared to the same time in 2016, according to Experian. In 2017, Oregon was the top state for ecommerce fraud ranking #1 for both billing and shipping fraud.\n#### The Growth of Online Shopping Fraud\nJuniper Research's Online Payment Fraud white paper reports that the transactional value of card-not-present fraud (fraud that occurs when the card is not physically presented during the purchase, such as over the phone or online) is estimated to reach $19.3 billion in 2022.\n**Online payment fraud is anticipated to grow 13.7% annually from 2017 to 2022**. Digital banking fraud should reach $7.9 billion by 2022. $50.9 billion is expected to be spent on fraud detection and prevention software between 2017 and 2022.\nEmbed\n### Synthetic ID Theft\nSynthetic identity theft occurs when criminals create a fictitious identity using various pieces of real and fabricated information—such as a Social Security number, date of birth, address, phone number and email. The immediate victim is the bank or lender, but long-term, whoever's Social Security number is used (this can be a child or adult), will have to deal with the impact of any accounts or debts attached to them fraudulently.\nThe average synthetic identity theft loss is $6,000 according to data from Experian. While many industry analysts may not agree on the total amount of money lost from synthetic ID theft, estimated to be in the billions, Aite Group stated that synthetic ID theft would cause $800 million in losses for credit card issuers in 2017.\nSource: Experian\n### Tax ID Theft\nThe IRS reported that in 2016, they stopped 883,000 confirmed identity theft tax returns, which is a 37% drop in confirmed identity theft tax returns compared to 2015. As of October 2017, the IRS had stopped 443,000 confirmed identity theft tax returns, a 30% decline from the same time last year.\n**Tax ID theft numbers fell substantially**. The number of people reporting that they were victims of tax identity theft fell to 376,000 in 2016, a 46% decline from 699,000 in 2015. This year the strong trend line has continued through August: 189,000 taxpayers have reported themselves as victims of identity theft, which is down approximately 40% from the same time last year. While tax ID theft has decreased, the IRS still estimated that $14.5 billion in fraudulent returns were attempted in 2015.\n### W-2 Scams\nThe W-2 form scam has emerged as one of the most dangerous phishing emails in the tax community. During the last two tax seasons, cybercriminals have tricked payroll personnel or people with access to payroll information into disclosing sensitive information for entire workforces.\nThe scam affected all types of employers, from small and large businesses to public schools and universities, hospitals, tribal governments and charities. Incidents reported from victims and non-victims increased to 900 in 2017, compared to slightly over 100 in 2016. There are additional tax scams popping up constantly as well, including those targeting tax preparers. END
 TITLE: Identity Theft Statistics CONTENT: How Soon Can You Tell if Your Identity Was Stolen?\n--------------------------------------------------\nIt typically takes three months for the majority of people find out they have been victims of identity theft, according to the ITRC's Aftermath Study. However, according to the same report, 16% of people didn't find out for three years.\nBeing persistent by monitoring your accounts and reviewing your personal information is the best way to stay on top of potential threats. \\[You can also sign up for an identity theft protection product like Experian IdentityWorks to help protect yourself and your family.\\] END
 TITLE: Identity Theft Statistics CONTENT: What Should You Do If You're an Identity Theft Victim?\n------------------------------------------------------\nIf you are a victim of identity theft, you should report it immediately. You can also take these steps:\n1.  Submit a report about the theft to the Federal Trade Commission's website or call the FTC's toll-free hotline at 1-877-IDTHEFT (438-4338).\n2.  Consider placing a freeze or fraud alert on your credit reports.\n3.  If you are the victim of medical ID theft, notify your insurer and medical providers, get copies of your medical files and ask to have them corrected. You can also consider filing a health-privacy complaint with the U.S. Department of Health & Human Services online or call 1-800-368-1019. If you are the victim of Tax ID theft, you can contact the IRS. END
 TITLE: What Happens If I Default on a Loan? CONTENT: What Is the Difference Between Default and Delinquency?\n-------------------------------------------------------\nIf you're behind on your payments, loan delinquency and default are two consequences you'll face.\nDelinquency begins the moment you've missed a payment. You'll typically be charged a late fee, and your lender will begin to make collection attempts. You may be considered delinquent for anywhere between 30 and 90 days—and sometimes longer—before the lender considers you to be in default.\nWhen the lender determines you are in default, typically collection attempts begin in earnest, either through the lender's own collection department or a third-party agency. END
 TITLE: What Happens If I Default on a Loan? CONTENT: How Does a Defaulted Loan Affect Credit?\n----------------------------------------\nDefaulting on a loan can not only have serious immediate financial repercussions but also some long-term consequences.\nWhen you're delinquent on a loan or credit card for at least 30 days, that late payment will be reported to the credit bureaus and will remain on your credit report for seven years. Once you default, that can also be reported to the credit reporting agencies as a collection account, which can further damage your credit score. Collection accounts also typically remain on your credit report for seven years.\nWith a default on your credit report, it can be challenging to get approved for credit in the future. That's because a lender's primary concern is repayment, and if your credit report indicates that you've failed to do that in the past, the lender may consider you to be too much of a risk.\nBut that doesn't necessarily mean that you won't ever qualify for another loan. Some lenders specialize in working with borrowers with negative credit issues, and they may offer a loan or credit card at a higher interest rate.\nAlso, it's important to keep in mind that credit scoring models typically favor new information over old information. So if you can manage to establish a positive payment history going forward, the effects of your default can diminish over time. END
 TITLE: What Happens If I Default on a Loan? CONTENT: How to Avoid Defaulting on a Loan\n---------------------------------\nBecause defaulting on a loan can have long-term ramifications, it's best to try to do whatever you can to avoid it in the first place. Here are some tips that can help:\n*   **Talk with your lender.** Default isn't just expensive for you, it's expensive for lenders too. That's why many are willing to work with struggling borrowers to help them avoid default. If you're delinquent or worried about missing an upcoming payment, talk with your lender to try to come up with a modified payment plan.\n*   **Ask about deferment options.** With some loan types, particularly student loans, you may be able to request deferment or forbearance on your loan payments if you're experiencing financial hardship. Deferment and forbearance can give you some reprieve from your monthly payments for a time while you work to get back on your feet financially.\n*   **Consider debt consolidation.** If your credit score is in decent shape, you may be able to consolidate your debt with a new loan, which will pay off the original debt and ideally neutralize the threat of default. This option is best considered if you are having difficulty keeping up with several debt payments and have a plan to pay off the new loan. If not, you could just be delaying the inevitable.\nAs you consider these and other ways to avoid default, you may be able to prevent further damage to your credit. END
 TITLE: What Happens If I Default on a Loan? CONTENT: Keep an Eye on Your Credit Score if You're Struggling With Payments\n-------------------------------------------------------------------\nChecking your credit score won't stop a delinquent or defaulted account from affecting it, but it's important to understand how different actions influence your score. Monitoring your credit can also help you stay motivated to make monthly payments and avoid allowing a delinquency or default to happen in the first place. END
 TITLE: When Does a Late Payment Appear on My Credit Report? CONTENT: A One-Day-Late Payment Likely Won't Show on Your Credit Report\n--------------------------------------------------------------\nA late payment will be noted on your credit report after you have skipped an entire billing cycle, usually about 30 days. Therefore, if your creditor's due date was March 5 and it's now March 6, the matter is just between you and them—they will not report this late payment to the credit bureaus.\nThat doesn't mean you won't be penalized in other ways. You'll almost surely be hit with a stiff fee. You can be charged a fee up to $29 for the first late payment, then $40 each time you pay late within six consecutive billing cycles, according to the [Consumer Financial Protection Bureau](;utm_campaign=subscription+mailing+list&utm_source=federalregister.gov).\nAnother sharp penalty could be an interest rate hike. A credit card issuer has the right to raise your rate if you pay after the date your payment is due. This will be especially painful if you took advantage of a zero-interest balance transfer offer to avoid interest on another credit card. Zero-interest credit card offers usually come with promotional annual percentage rates (APRs) for a certain number of months, but that special rate will only remain if you follow the rules and pay on time.\nSo while a one-day-late payment will be absent from your credit reports, it has the power to hurt your bottom line. END
 TITLE: When Does a Late Payment Appear on My Credit Report? CONTENT: When Are Late Payments Reported?\n--------------------------------\nNow imagine you pay a bill after an entire billing cycle has lapsed, waiting until April 6 to make a payment that was due March 5. That means you're behind enough for the issuer to furnish that information to the credit reporting agencies. It's considered a 30-day late payment, and it will be noted on your credit report for up to seven years. Anyone who checks your report will see it and is free to form an opinion about it.\nMore important, a 30-day late payment will affect your credit scores. The two largest credit scoring companies—FICO® and VantageScore—rank payment history as the most important score factor, and thus a late payment will shave points from your score. The extent of the damage depends on the state of your entire credit history. If you have a long and strong pattern of using credit products responsibly—paying on time and keeping revolving debts low—a single late payment isn't likely to drop your scores drastically. On the other hand, if you have very little on your credit report, your scores will likely decline markedly.\nIf you continue to let billing cycles elapse, your credit scores will be harmed more severely. The later a payment is, the more alarming it is to creditors and the more dramatically your credit scores will sink. Severely late payments could be an indication that you're in financial trouble, and a signal to lenders that you pose a credit risk. END
 TITLE: When Does a Late Payment Appear on My Credit Report? CONTENT: What to Do if You've Missed a Payment\n-------------------------------------\nThankfully there are immediate steps you can take to reduce the problems associated with a missed due date.\n*   **Pay your bill now.** Call your creditor or go online to pay your bill right away. Sending a payment by check will only cause an additional delay, and if it's not quickly received and processed, you could reach the dreaded 30-day-late mark.\n*   **Ask the creditor for a break.** Once the payment has been posted, call the creditor and ask to speak to someone who can help you with your account. If you have a compelling reason for paying late, explain what happened. Even if you don't have a good excuse, politely request that the late fee be waived. Many credit issuers will grant your wish on the spot, especially if you have been managing the account well. If the issuer has increased your interest rate, ask how you can get it back down. For example, they may lower it if you pay on time for the next six months.\n*   **Sign up for automatic bill pay.** A common reason people pay their bills late is because life gets in the way and they simply forget. You can avoid this issue by enrolling in your bank's autopay system, which will submit a payment for you on the day of the month you request. If your payment is due on the 15th, you can have the amount owed deducted from your checking account on the 11th, guaranteeing on-time payments as long as you have the money in your checking account to cover it. Of course you should still monitor your accounts, but it's a great way to streamline your financial affairs. END
 TITLE: When Does a Late Payment Appear on My Credit Report? CONTENT: Take Control\n------------\nPut yourself in a position of power and don't let late payments become a habit. If you do, it can result in costly fees and a debt that takes longer and is more expensive to repay than you anticipate. Worse, it can lead to serious damage to your credit. Check your free FICO® Score☉ on Experian to see where those numbers are today, then take action to ensure they go nowhere but up. END
 TITLE: When Do Late Payments Get Reported? CONTENT: When Do Late Payments Show Up on Your Credit Report?\n----------------------------------------------------\nWhen creditors send information to the credit bureaus, they use different status codes to indicate whether the payment on your account is current or late. There's no code for an account being one to 29 days late. Creditors will use the \"current\" code during that period, which is why your late payment won't show up—or impact your credit scores—until it is at least 30 days late.\nCreditors send updates to the credit bureaus at different times, and there's no way to know exactly when the late payment status will show up. Many creditors send updates monthly, however, so you could expect the late payment to appear on your credit report within a month or two of falling behind on your payments. END
 TITLE: When Do Late Payments Get Reported? CONTENT: Do Late Payments Affect Your Credit Score?\n------------------------------------------\nLate payments can hurt your credit scores, although the impact will depend on your overall credit profile and how far behind you fall on your payments.\nGenerally, a single late payment will lead to a greater score drop if you had excellent credit and a clean credit history. If you already have poor credit and your credit report shows other late payments, a new late payment could still hurt your score, but it may lower your score by fewer points.\nThe further behind you fall on your payments, the greater the potential impact on your credit scores. For example, having an account that is 60, 90 or 120 days past due will likely be worse for your credit than a single 30-day late payment. In addition, the impact of late payments on your credit scores typically decreases over time. And after seven years, late payments will fall off your credit report and won't impact your scores at all.\nFiguring out when a late payment will be removed from your credit report can sometimes be confusing, though. If you miss a payment and then bring your account current, the late payment will fall off after seven years, but the rest of your payment history on the account will stay on your credit report. If you miss another payment after bringing your account current, that late payment will have its own seven-year timeline for removal.\nWhen late payments lead to an account being closed, perhaps when the creditor sends the account to collections or charges off the account, the entire account and all related negative marks get deleted seven years after the first late payment. END
 TITLE: When Do Late Payments Get Reported? CONTENT: What to Do if You Missed a Payment\n----------------------------------\nIf you think you may miss a payment, try to reach your creditor as soon as possible.\nSome creditors give borrowers a grace period, and you might find that missing a payment by a few days doesn't result in any additional fees or penalties. But others may charge you a late payment fee as soon as you miss the due date.\nIf you're already late but can bring your account current, do this right away and then ask for a waiver or refund of the late fee. The creditor isn't required to remove the fee, but they may be willing to do so if you usually pay your bills on time. If you typically pay your credit card bill in full each month and the late payment led to interest charges, you may be able to get those back as well.\nWhen you've missed payments and aren't able to bring the account current, you should still contact your creditor and ask about hardship options. Some lenders and credit card companies may work with you to lower your interest rate or monthly payment, get you on a different payment plan, or let you temporarily stop making payments without being considered late. END
 TITLE: When Do Late Payments Get Reported? CONTENT: What to Do if the Reported Late Payment Is Incorrect\n----------------------------------------------------\nWhen your credit report shows that you missed a payment, but you know you paid the bill on time, you can file a dispute with the credit bureau where the late payment appears and ask it to correct your credit report. Each of the major credit bureaus—Experian, TransUnion and Equifax—has different procedures, but you can file disputes with each by mail, phone or online.\nWith Experian, the simplest option is to use the online Dispute Center. After creating or logging in to your account, you can review your credit report and select the late payment that you want to dispute. You can then indicate the reason for the dispute and upload supporting documents, if you have them, such as proof of your on-time payment.\nExperian will keep you updated during the investigation and resolution process, which generally takes 30 days or less. Once the investigation is complete, the disputed information will be corrected, deleted or, if deemed accurate, it will remain on your report. END
 TITLE: When Do Late Payments Get Reported? CONTENT: Monitor Your Credit Reports for Late Payments\n---------------------------------------------\nOften, you'll know when bills are past due and how much you owe. But sometimes there's a mistake, creditors don't have your current contact information, or you forget about an account and miss the correspondence.\nMonitoring your credit reports can help you stay on top of changes, such as reported late payments, and let you quickly react when you see something is amiss. To get started, you can sign up for free access to your Experian credit report, which comes with credit monitoring and alerts. END
 TITLE: What Is a Grace Period? CONTENT: What Is a Typical Grace Period for a Mortgage?\n----------------------------------------------\nA grace period for a mortgage varies from lender to lender, but typically lasts around 15 days from your payment due date. That means if your mortgage payment is due on the first of every month, you'd have until the 16th of the month to make your payment without penalty.\nAs long as you make you payment within the grace period outlined by your lender, your creditor won't be able to charge you any late fees. Late payment fees on mortgages can range from 3% to 6% of the monthly payment amount, depending on the local laws and lender.\nSince grace periods vary depending on the lender, make sure to check your mortgage documents to find out how many days you have before you're hit with a late payment penalty. END
 TITLE: What Is a Grace Period? CONTENT: What Is a Typical Grace Period for a Credit Card?\n-------------------------------------------------\nFor credit cards, grace periods are defined slightly differently. Credit card grace periods don't protect you from late fees like with mortgages, but rather they give you time to pay your balance in full without being charged interest on your purchases. Typically, the grace period on your credit card is the time between the end of your billing cycle and the day your payment is due.\nWhile credit card companies are not legally required to give you a grace period, many issuers do. Grace periods for credit cards will vary depending on the card issuer, but federal law requires that credit card companies send you your bill within 21 days of the payment due date, which means that you'll have at least 21 days' notice of how much you owe for that billing period. END
 TITLE: What Is a Grace Period? CONTENT: Do Payments Made Within the Grace Period Affect Your Credit?\n------------------------------------------------------------\nIn most cases, payments made during the grace period will not affect your credit. Late payments—which can negatively impact your credit— can only be reported to credit bureaus once they are 30 or more days past due. If you don't submit a payment during the grace period, you'll be responsible for paying any interest or late fees that are added to your account.\nIf you do not pay your bill within 30 days of the due date, the creditor—in addition to charging you any late fees or interest—will have the right to report the missing payment to one or more of the three major credit bureaus (Experian, TransUnion and Equifax). Payment history is the most important aspect of your credit score, and even one late or missed payment can negatively impact your scores.\nIf you've missed a payment in the past and are unsure if its listed in your credit report, consider getting a free copy of your credit reports and credit scores from Experian to see if any negative marks appear on your credit report. END
 TITLE: How to Get Free Lounge Access in Airports Around the World CONTENT: Get a Credit Card That Comes With Priority Pass\n-----------------------------------------------\nThe Priority Pass program gives members access to a network of more than 1,200 airport lounges, restaurants and suites around the world and is an easy way to make traveling more comfortable. Once you're a Priority Pass member, as long as you are in an airport with a Priority Pass lounge, you can access it as part of the membership. Priority Pass has lounges in over 500 cities—and in places where they don't have a lounge, you may be able to use your membership to get a voucher or discount at participating restaurants and shops.\nWhile Priority Pass provides several membership options on its website, the membership given out by most credit card issuers is called Priority Pass Select. This option allows members to visit lounges around the world for free, in some cases giving them a discounted rate for guests.\nGiven their value, Priority Pass Select memberships are not offered with all rewards cards and are typically reserved for higher-end luxury cards. Here are a few popular credit cards that currently come with a Priority Pass Select membership. You can also browse through Experian's credit card marketplace to check out other reward cards.\n*   The Platinum Card® from American Express\n*   Luxury CardTM Mastercard® Black CardTM\n*   Chase Sapphire Reserve®\n*   Hilton Honors American Express Surpass® Card (up to 10 complimentary lounge visits each Priority Pass membership year)\nGet an Airline Credit Card\n--------------------------\nAnother way to gain access to airport lounges is by getting a co-branded airline credit card. Major airlines often have their own airport lounges, and certain elite cards offer lounge access as an added perk. Depending on where the airline is based and operates, it might be best to get a card with an airline that has lounges in airports you frequent.\n> Find the best airline credit cards in Experian CreditMatch™.\nThese are a few of the larger airline lounge clubs, each of which has a co-branded credit card that comes with discounted or free access to their lounges.\n### Sky Club® (Delta Air Lines)\n**Annual Fee**: $550  \n**Day Pass**: No longer available for purchase  \n**Best Credit Card to Use for Free Access**: Delta SkyMiles® Reserve Card From American Express\nHaving a membership to Delta's Sky Club gets you access to more than 250 lounges around the world—50 of which are Delta Sky Clubs. With the Delta SkyMiles® Reserve Card, you get free access to Delta Sky Clubs and can purchase passes for up to two guests for $39 per person. You can also access Sky Clubs with the Delta SkyMiles® Platinum American Express Card, which offers cardholders a discounted entry rate of $39 for the cardholder and up to two guests. Sky Clubs offer many of the common lounge amenities, including an open bar, free food, comfy furniture and more. Both cards offer these benefits on the same day you're a passenger on flights marketed or operated by Delta.\n### United Club (United Airlines)\n**Annual Fee**: $550  \n**Day Pass**: $59  \n**Best Credit Card to Use for Free Access**: UnitedSM Explorer Card from Chase\nUnited Club members can get unlimited access to more than 45 locations globally and can bring up to two members with them for free. With the United℠ Explorer Card, you get two free day passes for the United Club each year you have the card (the passes expire after a year). United Clubs offer all the usual amenities.  \n> Find the best airline credit cards in Experian CreditMatch™.\nOther Ways to Get Into an Airport Lounge\n----------------------------------------\n**Check out The American Express Global Lounge CollectionSM.** This program—available only to people with The Platinum Card® from American Express or Centurion® Card—gives cardholders complimentary entry to the exclusive Centurion® Lounges along with access to a network of other airport lounges around the world. Centurion Lounges offer similar amenities to other airport lounges, but are only found in a few locations around the world.\n**Join a frequent flyer program.** If you travel enough, joining an airline's frequent flyer program could be a great route to accessing perks like lounge access, seat upgrades, free checked bags and priority boarding. The higher your status within the program, the more of these elite perks you'll be eligible for. Most of these programs are free and easy to join. Contact your preferred airline for more information.\n**Buy a day pass.** If you don't travel often but still want lounge access for an occasional trip, think about buying a day pass. This could be a good option if you have a long layover in a certain city, or if you prefer to wait in comfort while traveling. Not all lounges offer day passes, so do some research before your trip make sure the airport lounge you are thinking about going to has this option. To find specific airport lounge locations, check the websites of different airlines. You can also browse airport web pages to find the different lounges they provide.  \nThe information about the Luxury CardTM Mastercard® Black CardTM, Delta Reserve® Credit Card From American Express, Citi® \/ AAdvantage® Executive World EliteTM MasterCard®, and UnitedSM Explorer Card was collected by Experian and has not been reviewed or provided by the issuers of the cards. END
 TITLE: How to Get Free Lounge Access in Airports Around the World CONTENT: Get an Airline Credit Card\n--------------------------\nAnother way to gain access to airport lounges is by getting a co-branded airline credit card. Major airlines often have their own airport lounges, and certain elite cards offer lounge access as an added perk. Depending on where the airline is based and operates, it might be best to get a card with an airline that has lounges in airports you frequent.\n> Find the best airline credit cards in Experian CreditMatch™.\nThese are a few of the larger airline lounge clubs, each of which has a co-branded credit card that comes with discounted or free access to their lounges.\n### Sky Club® (Delta Air Lines)\n**Annual Fee**: $550  \n**Day Pass**: No longer available for purchase  \n**Best Credit Card to Use for Free Access**: Delta SkyMiles® Reserve Card From American Express\nHaving a membership to Delta's Sky Club gets you access to more than 250 lounges around the world—50 of which are Delta Sky Clubs. With the Delta SkyMiles® Reserve Card, you get free access to Delta Sky Clubs and can purchase passes for up to two guests for $39 per person. You can also access Sky Clubs with the Delta SkyMiles® Platinum American Express Card, which offers cardholders a discounted entry rate of $39 for the cardholder and up to two guests. Sky Clubs offer many of the common lounge amenities, including an open bar, free food, comfy furniture and more. Both cards offer these benefits on the same day you're a passenger on flights marketed or operated by Delta.\n### United Club (United Airlines)\n**Annual Fee**: $550  \n**Day Pass**: $59  \n**Best Credit Card to Use for Free Access**: UnitedSM Explorer Card from Chase\nUnited Club members can get unlimited access to more than 45 locations globally and can bring up to two members with them for free. With the United℠ Explorer Card, you get two free day passes for the United Club each year you have the card (the passes expire after a year). United Clubs offer all the usual amenities. END
 TITLE: How to Get Free Lounge Access in Airports Around the World CONTENT: Other Ways to Get Into an Airport Lounge\n----------------------------------------\n**Check out The American Express Global Lounge CollectionSM.** This program—available only to people with The Platinum Card® from American Express or Centurion® Card—gives cardholders complimentary entry to the exclusive Centurion® Lounges along with access to a network of other airport lounges around the world. Centurion Lounges offer similar amenities to other airport lounges, but are only found in a few locations around the world.\n**Join a frequent flyer program.** If you travel enough, joining an airline's frequent flyer program could be a great route to accessing perks like lounge access, seat upgrades, free checked bags and priority boarding. The higher your status within the program, the more of these elite perks you'll be eligible for. Most of these programs are free and easy to join. Contact your preferred airline for more information.\n**Buy a day pass.** If you don't travel often but still want lounge access for an occasional trip, think about buying a day pass. This could be a good option if you have a long layover in a certain city, or if you prefer to wait in comfort while traveling. Not all lounges offer day passes, so do some research before your trip make sure the airport lounge you are thinking about going to has this option. To find specific airport lounge locations, check the websites of different airlines. You can also browse airport web pages to find the different lounges they provide. END
 TITLE: Can Utility Bills Appear on Your Credit Report? CONTENT: How Can a Utility Bill Hurt Your Credit?\n----------------------------------------\nUtility companies do not report accounts and payment history to the three major credit bureaus (Experian, TransUnion and Equifax), and as a result, these types of bills have not historically had an impact on your credit scores. For a utility company to be able to report information to a credit bureau, they must meet the requirements of the Fair Credit Reporting Act, such as updating payment information regularly and being able to respond to disputes within legally mandated timeframes.\nOne of the few instances where your utility and telecom bills—including energy, phone and cable—will affect your credit score is if you miss enough payments that the provider sends your debt to a collection agency or charges off your account, assuming you're not going to pay it. END
 TITLE: Can Utility Bills Appear on Your Credit Report? CONTENT: Collections on Your Credit Report\n---------------------------------\nCompanies typically turn to collection agencies when bills are severely past due and the providers are unsure whether they will ever recover the debt. Once a collection agency assumes the debt, it typically opens a collection account in the debtor's name and sends a record of that account to one or all of the three major credit bureaus. When that happens, the collections account becomes a part of your credit file.\nOnce a collection account or charge-off becomes part of your credit history, it can have a lasting negative effect on your credit score. These are considered derogatory marks and can remain in your credit file for seven years. Even if you pay the collection agency and the account is closed, a record of the debt will still remain.\nCollection accounts don't only negatively impact your credit scores, but they can also come with expensive fees that increase your overall debt. If you've had a collection account opened for a past debt, it's best to try to resolve it as soon as you can before the issue escalates any further. END
 TITLE: Can Utility Bills Appear on Your Credit Report? CONTENT: How Utility Bills Can Now Improve Your Credit Score\n---------------------------------------------------\nWhile historically, utility bills in good standing have not been included in credit reports, a groundbreaking new innovation called Experian Boost™† allows users to get credit for on-time payments made on utility and telecom accounts.\nExperian Boost works instantly, allowing users with eligible payment history to see their FICO® Score☉ increase in a matter of minutes. Currently, it is the only way you can get credit for your utility and telecom payments.\nThrough the new platform, users can opt in to allow Experian to connect to their bank accounts and identify past utility and telecom payments—including cable and phone bills—that were paid on time. After the user verifies the data and confirms they want it added to their credit file, they will receive an updated FICO® Score instantly. END
 TITLE: Can Utility Bills Appear on Your Credit Report? CONTENT: Can Utility Bills Reported to Experian Impact Lending Decisions?\n----------------------------------------------------------------\nWith Experian Boost, your utility bills might be the key to unlocking new financial possibilities. Once you connect your bank account and receive your new FICO® Score, you may have an easier time getting approved for certain credit products.\nAn added benefit of Experian Boost is if you are eligible for an increased score, you should see a boost across all of your different FICO® Scores. FICO® Scores are the most commonly used credit scores by lenders and come in several varieties depending on who is requesting to see it. In some cases, auto lenders, bankcard issuers and mortgage lenders will use a different version of your FICO® Score to decide whether to approve you for their specific loan.\nOverall, boosting your FICO® Score should help you with future lending decisions. Not only do lenders decide to issue new credit based on your credit reports and scores, but they often use this information to establish interest rates and loan terms. Having an increased score can help you get approved for more competitive credit and might help you get a reduced interest rate—which can save you thousands of dollars over the life of a loan.\nIf you are unsure whether you've had a collection account added to your credit file, you can check by getting a free copy of your credit report from Experian. Periodically monitoring your credit reports can help you stay on top of any changes in your accounts—which may help your credit history over time. END
 TITLE: How to Get a Low Interest Personal Loan CONTENT: Types of Personal Loans\n-----------------------\nThere are two main types of personal loans: secured and unsecured.\n**Secured Loans**  \nSimilar to a secured credit card, a secured loan requires the borrower to provide the lender with some form of collateral. This collateral acts as a security deposit for the loan and protects the lender in case you fail to pay back your debt.\nThe most common types of secured loans are mortgages, home equity lines of credit (HELOCs) and auto loans. With a mortgage, the home is the collateral; with an auto loan, the car. Remember that loans like this typically restrict what you can use the borrowed money for: Mortgage loans can only be used to buy a home, and auto loans can only be used to purchase a car.\n**Unsecured Loans**  \nMost personal loans are unsecured, which means they don't require any collateral from the borrower. With these loans, you can apply for the loan, be approved on the merits of your financial profile, and not have to worry about providing the lender with any collateral.\nApproval for unsecured loans is based on your credit history and your past ability to pay back debt on time. Lenders typically use your credit reports and scores to figure out how likely it is you will make your new payments punctually. With most unsecured personal loans, you have no restrictions on how you can use the money. Lenders typically disburse personal loans in a lump sum, and then you're free to spend the money at your discretion. Understanding unsecured personal loans before you apply is important to getting the best interest rate and also determining whether this is the right solution for your cash needs. END
 TITLE: How to Get a Low Interest Personal Loan CONTENT: First Step: Check Your Credit Reports and Scores\n------------------------------------------------\nCredit reports and scores are used in almost all lending decisions, so a good first step before you apply for a personal loan is getting a free copy of your reports and scores so you can understand what the lenders will be looking at when considering your application. Remember that checking your own credit does not affect your score, so you can check it as often as you need.\nOnce you've taken a look at your credit reports, you should have a better idea of what type of loan you may be eligible for. Some lenders are pickier than others when it comes to approving applicants, so find out lenders' credit score minimums—if they make them available—to know where you stand.\nThe lowest interest rates are usually given to people with top-tier credit scores, so if you have poor credit, it may be tricky to find a personal loan at a low rate. If you're in a lower credit tier, think about spending some time improving your credit scores before applying for a personal loan. This could increase your chances of getting a low interest rate and could help you save money over the life of your loan. END
 TITLE: How to Get a Low Interest Personal Loan CONTENT: Things to Keep in Mind When Applying for a Low Interest Loan\n------------------------------------------------------------\nWhen you pay back a loan, you are usually paying back more than just the principal amount you borrowed. Depending on the terms of your debt, a portion of your monthly payment will go to pay the interest and fees associated with the loan.\nPaying attention to some of the common costs associated with new borrowing could mean saving thousands of dollars over the lifetime of your loan. Here are some things to take a close look at when shopping around for a new loan:\n*   **Interest rate.** Interest rates are one of the most important aspects of borrowing and should be weighed heavily when shopping for a new loan. While the rate you end up with is often based on your credit score, rate ranges vary depending on lender and type of loan, so it's important to understand how they can affect your borrowing.\n*   **APR.** Your annual percentage rate, or APR, includes your interest rate and other fees and costs associated with taking a loan. You can use this number to drill down to the exact cost of your loan. APRs are different from interest rates, and although in some cases they are used interchangeably, it's important to read the fine print when considering different loans.\n*   **Fees.** Your borrowing agreements can help you identify any fees or extra costs associated with your loan. These include origination fees, prepayment penalties, late fees and other costs. Fees can increase the overall cost of borrowing, so make sure you know the details associated with your loan.\n*   **Term.** The term—or the length of time over which you agree to repay your debt—is important because, in combination with your interest rate, it can tell you how much you will pay each month. Loans with longer terms often have lower monthly payments, while shorter terms typically come with higher payments. Remember, interest is charged on borrowed money over the life of the loan, so the longer it takes you to repay the debt, the more interest you'll end up paying.\nIf you're in the market for a new loan, limiting the number of applications you send out can help keep your credit score intact. Usually, when a lender requests your credit report for a loan application, a hard inquiry is recorded in your credit file. Hard inquiries remain a part of your credit file for up to two years and can have a negative impact on your score if you rack up too many in a short period of time.\nPersonal Loan Calculator\n------------------------\n†The information provided is for educational purposes only and should not be construed as financial advice. Experian cannot guarantee the accuracy of the results provided. Your lender may charge other fees which have not been factored in this calculation. These results, based on the information provided by you, represent an estimate and you should consult your own financial advisor regarding your particular needs. END
 TITLE: How to Get a Low Interest Personal Loan CONTENT: Other Factors That Could Impact Your Interest Rate\n--------------------------------------------------\nIf you're having trouble getting approved for a low interest loan, consider looking at different types of lenders known to offer loans at lower rates.\n*   **See if you can borrow from a credit union.** Credit unions are known for making lower-interest loans available to their members. Because credit unions are not-for-profit, they are able to offer loans with lower rates than their for-profit competitors, making them a good option if you qualify. Eligibility for credit union membership usually depends on your employer, industry or residence. To find out whether you are eligible for a credit union membership, check with your employer or any professional group you are a member of or call your local credit union to see if you qualify.\n*   **Check out online lenders.** Compared with brick-and-mortar banks, some online lenders are able to offer lower interest rates because they don't have to pay the overhead costs of having a physical location. In addition, online lenders can be convenient and quick, allowing people to apply and get approved for a loan without ever leaving home.\n*   **Consider a lending circle.** Lending circles offer alternatives to conventional borrowing and are based on private agreements you make with friends and family. These arrangements source the loan funds from your \"circle\"—or group of friends and family participating—and as you repay your loan, your investors recoup their contribution. These loans are also typically free of interest and fees, and give financial opportunities to people who otherwise might not have borrowing options. Some third-party companies, such as Mission Asset Fund, help to officiate lending circles and may be a good option if you are trying to use your lending circle debt to build your credit. Click here to get more information about Mission Asset Fund.\n> Find the best personal loans in Experian CreditMatch™. END
 TITLE: How to Get a Low Interest Personal Loan CONTENT: Personal Loan Options\n---------------------\n### Prosper\nApply\non Prosper's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $2,000 to $40,000\nEst. monthly payment: $61 to $1,720\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   640 minimum FICO® Score\n*   More than $16 billion loans funded\n*   Consolidate debt, finance a home improvement project, or pay off medical expenses\n*   9 out of 10 customers would recommend Prosper to friends or family\\*\\*\n*   Co-borrower option available. Applying with a co-borrower could help improve your rates.\n*   Get your money in as few as 3 days - your monthly payment stays the same\nDisclosure\nProsper offers personal loans of up to $40,000, has a simple online application process, and allows you to find out your interest rate without your credit scores being affected. Prosper accepts applicants with a FICO® Score☉ of 640 or above and offers fixed interest rates ranging from 7.95% to 35.99%, depending on your creditworthiness. There are no prepayment penalties associated with a Prosper loan, and if you are approved, your money is deposited in your account in as little as three days.\n* * *\n### Upstart\nApply\non Upstart's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,262\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Loan amounts from $1,000 - $50,000\n*   APRs from 6.46% - 35.99% with loan terms of 3 or 5 years\n*   Won't affect your credit score\n*   You can have funds in as fast as 1 day\n*   You are more than your credit score. On Upstart your education and experience help you get the rate you deserve.\nDisclosure\nUpstart offers loans between $1,000 and $50,000 and has several borrowing options, including personal loans.\nUpstart is a newer lender that works with applicants who have less developed credit files. When considering applicants, Upstart looks at alternative aspects  \nof a borrower's profile, such as education and job history, rather than basing their decision solely on credit scores. Upstart offers an easy application process: There is no hard credit check involved to check your interest rate, and they fund loans in as quickly as one day.\nTo check out additional personal loan offers, you can use Experian's CreditMatch tool to be paired with loan offers based on your FICO® Score. Once you find the low interest personal loan you need, remember to use the proceeds responsibly and make all your payments on time. END
 TITLE: How to Get a Low Interest Personal Loan CONTENT: ### Prosper\nApply\non Prosper's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nAmount\nAvailable loan amounts: $2,000 to $40,000\nEst. monthly payment: $61 to $1,720\nGrace period: 0 days\nApplication fee: $0\n##### Loan Details\n*   640 minimum FICO® Score\n*   More than $16 billion loans funded\n*   Consolidate debt, finance a home improvement project, or pay off medical expenses\n*   9 out of 10 customers would recommend Prosper to friends or family\\*\\*\n*   Co-borrower option available. Applying with a co-borrower could help improve your rates.\n*   Get your money in as few as 3 days - your monthly payment stays the same\nDisclosure\nProsper offers personal loans of up to $40,000, has a simple online application process, and allows you to find out your interest rate without your credit scores being affected. Prosper accepts applicants with a FICO® Score☉ of 640 or above and offers fixed interest rates ranging from 7.95% to 35.99%, depending on your creditworthiness. There are no prepayment penalties associated with a Prosper loan, and if you are approved, your money is deposited in your account in as little as three days.\n* * * END
 TITLE: How to Get a Low Interest Personal Loan CONTENT: ### Upstart\nApply\non Upstart's website\n**Recommended FICO® Score\\***\nFair - Exceptional\nAmount\nAvailable loan amounts: $1,000 to $50,000\nEst. monthly payment: $30 to $2,262\nGrace period: 15 days\nApplication fee: $0\n##### Loan Details\n*   Loan amounts from $1,000 - $50,000\n*   APRs from 6.46% - 35.99% with loan terms of 3 or 5 years\n*   Won't affect your credit score\n*   You can have funds in as fast as 1 day\n*   You are more than your credit score. On Upstart your education and experience help you get the rate you deserve.\nDisclosure\nUpstart offers loans between $1,000 and $50,000 and has several borrowing options, including personal loans.\nUpstart is a newer lender that works with applicants who have less developed credit files. When considering applicants, Upstart looks at alternative aspects  \nof a borrower's profile, such as education and job history, rather than basing their decision solely on credit scores. Upstart offers an easy application process: There is no hard credit check involved to check your interest rate, and they fund loans in as quickly as one day. END
 TITLE: What Is a Credit Union? CONTENT: How Are Credit Unions Different From Banks?\n-------------------------------------------\nIf banks are big chain restaurants, credit unions are local, family-owned cafes. You must meet certain criteria to be a member, and as a result, you'll get personalized service, a community-oriented mission and perks like financial education. Credit unions are different from banks in the following ways:\n*   **Credit unions require membership to join.** You may qualify through your employer, religious institution, labor union or the geographic area you live in depending on the credit union. You may also join if you have a family member who meets one of the credit union's requirements. Some credit unions, like Alliant Credit Union and Connexus Credit Union, don't restrict their membership at all: Anyone can join by donating to a partner charity.\n*   **Credit unions return profits to members.** Banks are for-profit institutions, which means their owners get a cut of the banks' interest and fee earnings. Since credit unions are owned by their members, the members themselves enjoy those profits in the form of lower-rate loans and higher-rate savings accounts. Members also elect representatives to each credit union's board of directors, so you'll have a say in how the credit union is governed and how it spends its money.\n*   **Credit unions may have fewer convenient branches.** A credit union's mission is to serve the community where it's located, which means it may not have accessible physical locations elsewhere if you travel or move. But many credit unions have joined networks that offer fee-free ATMs and shared branches to credit union members across the country. END
 TITLE: What Is a Credit Union? CONTENT: How Do You Join a Credit Union?\n-------------------------------\nSearch for a credit union in your area using the National Credit Union Administration's locator tool, or ask your employer, school or place of worship if it has an affiliated credit union.\nWhen choosing a credit union, make sure it has the features that are most important to you. Perhaps you want access to a mobile app, a wide network of ATMs or no checking account minimums.\nOnce you've chosen a credit union, you'll confirm your eligibility and open an account with a small deposit. You may also pay a one-time membership fee. You can typically open an account either online or in person. END
 TITLE: What Is a Credit Union? CONTENT: What Are the Advantages of a Credit Union?\n------------------------------------------\nThe biggest advantage is the one that most affects your personal bottom line. If you've noticed that the money in your bank accounts isn't earning as much interest as you'd like, a credit union may be a better bet.\nHere's an example: The national average savings rate at credit unions for a five-year certificate of deposit—a type of savings account that locks in your money for a specified period of time—was 2.35% in December 2018, according to an analysis by the National Credit Union Administration (NCUA). The average rate for the same account at banks was 1.89%. Credit unions may also offer lower rates on credit cards, mortgages, car loans and home equity loans.\nBorrowers without good credit may be more likely to get a loan from a credit union than from a traditional bank. Credit unions are able to offer these benefits due to their nonprofit status and their mission to invest in the local community. They have more flexibility to offer low rates and take on riskier borrowers partly because they don't pay income tax—though they do pay state and local property and payroll taxes. END
 TITLE: What Is a Credit Union? CONTENT: What Are the Disadvantages of a Credit Union?\n---------------------------------------------\nCredit unions may not offer innovative online or mobile banking features the way traditional banks do. That could make it harder to deposit a check on the go, for instance, or to find your closest surcharge-free ATM.\nThe availability of these features depends heavily on the credit union, though. Some have attracted members who prioritize the convenience of online banking by investing in technology. Check to see whether your chosen credit union has a mobile app and look up its user reviews on iTunes or Google Play.\nIf you prefer to visit physical bank branches, you'll likely have fewer options as a credit union member. But look into whether your credit union is a member of a larger network that you can turn to when you're outside the local community. END
 TITLE: What Is a Credit Union? CONTENT: What Are the Different Types of Credit Unions?\n----------------------------------------------\nCredit unions are either federally insured or privately insured. The NCUA regulates federally insured credit unions, and the National Credit Union Share Insurance Fund (NCUSIF) insures their deposits. That's similar to how the Federal Deposit Insurance Corporation backs bank deposits.\nSome credit unions are state-chartered, as opposed to federal, and are privately insured. States oversee these credit unions and their deposits are not insured by the NCUSIF.\nThere's an easy way to tell if your credit union is federally insured. Its official name, which shows up on your statements and in legal documents, must include the phrase \"Federal Credit Union.\" END
 TITLE: What Is a Credit Union? CONTENT: What Are Employer Credit Unions?\n--------------------------------\nEmployer credit unions are available to those working in specific industries or at certain organizations or government agencies. Companies from brewer Anheuser-Busch to the grocery chain Publix have credit unions open to their employees. Other employer credit unions serve larger fields of membership.\nYou may have access to a credit union through work as a:\n*   **Government employee:** Federal government employees can join the Pentagon Federal Credit Union, known as PenFed, or other credit unions—like the Treasury Department Federal Credit Union—depending on the agency they work for.\n*   **Member of the military:** Both current and retired military service members can join the Navy Federal Credit Union; so can their family members. Other options include credit unions serving military bases, such as Andrews Federal Credit Union.\n*   **Teacher:** Credit unions for teachers are available in several states and localities.\n*   **Member of a labor union:** If you're a member of a union such as the AFL-CIO, for instance, you qualify for membership in its associated credit union.\n*   **Postal employee:** The U.S. Postal Service has its own credit union, and postal employees can also join credit unions in their cities or counties.\n*   **Police officer or firefighter:** There are multiple credit union options for police officers, firefighters and their families, generally in the localities where they work.\n*   **Transit employee:** Transit systems including the Philadelphia-area Southeastern Pennsylvania Transportation Authority, known as SEPTA, and the Washington Metropolitan Area Transit Authority operate their own credit unions. END
 TITLE: What Is a Credit Union? CONTENT: A college credit union restricts its membership to students, alumni, faculty, staff and their family members. The process to join is the same as for other credit unions. You'll become a member and part owner for life or for as long as you choose to maintain membership, not just while you're studying or working at the school. College credit unions may offer:\n*   On-campus banking locations\n*   Financial products geared toward students and those just starting out, including private student loans, student loan refinancing and first-time homebuyer programs\n*   Scholarships for members\n*   Financial education workshops END
 TITLE: What Is a Credit Union? CONTENT: Do Credit Unions Report to Credit Bureaus?\n------------------------------------------\nCredit unions offer the same financial products banks do. That means applications for new lines of credit, and all loan or credit card payments made, will be reported to the credit bureaus. To maintain a good credit score, pay all your bills on time, including on any credit lines you've taken out from a credit union, and keep your balances low. END
 TITLE: What Is a Credit Union? CONTENT: The Bottom Line\n---------------\nCredit unions generally provide a more cost-effective and personalized alternative to banks, if you're willing to trade some of the convenience and advanced technology traditional banks offer. They're an especially worthwhile option if banks won't work with you due to your credit score, or if you're looking for a deeper connection to your community. END
 TITLE: How to Get the Most out of Your Luxury Credit Card CONTENT: Sign Up for Any Opt-In Services\n-------------------------------\nLuxury cards often come with amazing benefits—like Uber credits and airport lounge memberships—but to get them, you have to make sure you're signed up for the services. Doing this as soon as possible can help you plan ahead, saving you time and money.\n> Find credit cards for reward points in Experian CreditMatch™.\nHere are a few popular luxury rewards cards and some of the opt-in services they offer.\n### Chase Sapphire Reserve®\n*   **Complimentary Priority Pass Select membership.** Before you can use this perk, you need to register for a Priority Pass account and receive your membership card.\n*   **Global Entry or TSA PreCheck application credit.** You can get a reimbursement of up to $100 for Global Entry or TSA PreCheck when you use your card to pay the application fee.\n### Luxury CardTM Mastercard® Black CardTM\n*   **Global Entry application credit.** This card will reimburse the $100 Global Entry application fee when you use your card to pay it. Your card must be open for at least seven days before the charge hits, and a statement credit will appear in two to three weeks. This credit is only offered once every five years.\n*   **Complimentary Priority Pass Select membership.** Before you can use this perk, you need to register for a Priority Pass account and receive your membership card.\nRemember to Get Your Travel Reimbursements\n------------------------------------------\nMany high-end cards now come with some sort of travel reimbursement, but how you can cash in on them differs from card to card. Here is a breakdown of what you have to do to qualify for your travel reimbursement with a few popular luxury rewards cards.\n### Chase Sapphire Reserve®\n*   **$300 annual travel credit.** This credit is relatively easy to get. As you use your Chase card for purchases coded as \"travel,\" you will be automatically credited up to $300 each year. Travel, as defined by Chase, includes everything from airlines and hotels to campgrounds, trains, ferries, taxis and more.\n### Luxury CardTM Mastercard® Black CardTM\n*   **$100 annual airline credit.** This credit applies to purchases made with a qualifying airline for things like airfare, baggage, lounge access and some in-flight purchases. Once these charges appear on your account, you will automatically be eligible for the $100 credit. The credit is only good once every calendar year.\nPlan Your Spending\n------------------\nAnother great aspect of these high-end cards is that they typically offer more rewards points for each dollar you spend. For example, The Platinum Card® from American Express offers 5 reward points for every dollar spent on purchases made directly with airlines; the Chase Sapphire Reserve® offers 3 points for every dollar spent on travel and dining purchases; and the American Express® Gold Card offers 4 points for every dollar spent on purchases at restaurants, including takeout and delivery.\nThese amplified rewards can be seriously valuable for people who spend a lot in certain categories each year. As with everything, if you plan ahead and understand what your card offers, you should be able to maximize your reward spending and use the right card for your purchases.\nUtilize Other Luxury Services\n-----------------------------\nLuxury cards come with many benefits, but some of them get buried in the fine print. Maximizing your card's value starts with knowing everything it offers—both big and small.\n> Find credit cards for reward points in Experian CreditMatch™.\nCheck out these cards and their often-overlooked card benefits. It could save you some serious cash and could come in handy when making big purchases or traveling.\n### Chase Sapphire Reserve®\n*   The Luxury Hotel & Resort Collection, offering access to luxury stays\n*   Trip cancellation or interruption insurance\n### Luxury CardTM Mastercard® Black CardTM\n*   Luxury Card Concierge\n*   Global luggage delivery option when you travel\n*   Charter service for luxury travel\nIf you don't already have a luxury rewards credit card and want to check out some of your options, browse through Experian's credit marketplace to see what is available. You can also use Experian's CreditMatchTM tool to be matched with cards that might be right for you using your FICO® Score☉ . As always, if you are thinking about applying for new credit, it's a good idea to check your credit reports and score to know where you stand. You can get a free copy of your credit report from Experian. END
 TITLE: How to Get the Most out of Your Luxury Credit Card CONTENT: ### Chase Sapphire Reserve®\n*   **Complimentary Priority Pass Select membership.** Before you can use this perk, you need to register for a Priority Pass account and receive your membership card.\n*   **Global Entry or TSA PreCheck application credit.** You can get a reimbursement of up to $100 for Global Entry or TSA PreCheck when you use your card to pay the application fee. END
 TITLE: How to Get the Most out of Your Luxury Credit Card CONTENT: Remember to Get Your Travel Reimbursements\n------------------------------------------\nMany high-end cards now come with some sort of travel reimbursement, but how you can cash in on them differs from card to card. Here is a breakdown of what you have to do to qualify for your travel reimbursement with a few popular luxury rewards cards.\n### Chase Sapphire Reserve®\n*   **$300 annual travel credit.** This credit is relatively easy to get. As you use your Chase card for purchases coded as \"travel,\" you will be automatically credited up to $300 each year. Travel, as defined by Chase, includes everything from airlines and hotels to campgrounds, trains, ferries, taxis and more.\n### Luxury CardTM Mastercard® Black CardTM\n*   **$100 annual airline credit.** This credit applies to purchases made with a qualifying airline for things like airfare, baggage, lounge access and some in-flight purchases. Once these charges appear on your account, you will automatically be eligible for the $100 credit. The credit is only good once every calendar year. END
 TITLE: How to Get the Most out of Your Luxury Credit Card CONTENT: ### Chase Sapphire Reserve®\n*   **$300 annual travel credit.** This credit is relatively easy to get. As you use your Chase card for purchases coded as \"travel,\" you will be automatically credited up to $300 each year. Travel, as defined by Chase, includes everything from airlines and hotels to campgrounds, trains, ferries, taxis and more. END
 TITLE: How to Get the Most out of Your Luxury Credit Card CONTENT: Plan Your Spending\n------------------\nAnother great aspect of these high-end cards is that they typically offer more rewards points for each dollar you spend. For example, The Platinum Card® from American Express offers 5 reward points for every dollar spent on purchases made directly with airlines; the Chase Sapphire Reserve® offers 3 points for every dollar spent on travel and dining purchases; and the American Express® Gold Card offers 4 points for every dollar spent on purchases at restaurants, including takeout and delivery.\nThese amplified rewards can be seriously valuable for people who spend a lot in certain categories each year. As with everything, if you plan ahead and understand what your card offers, you should be able to maximize your reward spending and use the right card for your purchases. END
 TITLE: How to Get the Most out of Your Luxury Credit Card CONTENT: Utilize Other Luxury Services\n-----------------------------\nLuxury cards come with many benefits, but some of them get buried in the fine print. Maximizing your card's value starts with knowing everything it offers—both big and small.\n> Find credit cards for reward points in Experian CreditMatch™.\nCheck out these cards and their often-overlooked card benefits. It could save you some serious cash and could come in handy when making big purchases or traveling.\n### Chase Sapphire Reserve®\n*   The Luxury Hotel & Resort Collection, offering access to luxury stays\n*   Trip cancellation or interruption insurance\n### Luxury CardTM Mastercard® Black CardTM\n*   Luxury Card Concierge\n*   Global luggage delivery option when you travel\n*   Charter service for luxury travel\nIf you don't already have a luxury rewards credit card and want to check out some of your options, browse through Experian's credit marketplace to see what is available. You can also use Experian's CreditMatchTM tool to be matched with cards that might be right for you using your FICO® Score☉ . As always, if you are thinking about applying for new credit, it's a good idea to check your credit reports and score to know where you stand. You can get a free copy of your credit report from Experian. END
 TITLE: What Are Credit Bureaus and How Do They Work? CONTENT: The Three Major Consumer Credit Bureaus\n---------------------------------------\nThe three major consumer credit bureaus are TransUnion, Equifax and Experian, the publisher of this article. Creditors, like banks and credit card companies, use these bureaus' consumer credit reports to help them determine the risk involved in lending money to regular people like you.\nIn other words, when you apply for a mortgage, personal loan, student loan, auto loan, line of credit or credit card, the lender may base its decision to approve or reject your application on your credit reports from the major consumer credit bureaus.\nThere are also all sorts of specialty credit reporting agencies. Some focus on information that landlords want to know, such as whether you've ever been evicted, while other bureaus track and report consumers' insurance claims. The Consumer Financial Protection Bureau (CFPB) maintains a list of credit reporting agencies with details on how you can request a free copy of your credit report from each company.\nBack to the big three. While they often get lumped together, it's important to remember that they are separate, for-profit companies. The big three compete to create the largest and most accurate databases of consumer information and sell credit reports among other products. As a result, your credit reports from the three bureaus often aren't identical. END
 TITLE: What Are Credit Bureaus and How Do They Work? CONTENT: How Do Credit Bureaus Get Information?\n--------------------------------------\nIf you've gotten a loan or credit card from a major issuer within the past seven years, there's a good chance your information is in at least one of the major bureaus' databases. Most of the credit bureaus' information comes from other companies. In the credit world, these companies are called data furnishers. In everyday terms, they're the same financial institutions that you regularly interact with, including banks, credit unions, credit card issuers, collection agencies and loan servicers.\nThese data furnishers send information about their customers' accounts, such as their current balances and whether their bill was paid on time, to the credit bureaus at least once every month. They aren't required to send information to the credit bureaus—it's all voluntary. In fact, it costs money to maintain the staff and systems that allow companies to report to the bureaus.\nHowever, the creditors also benefit from reporting. After all, borrowers may be more likely to make payments on time if they know a late payment will get reported to the credit bureaus and possibly hurt their credit scores.\nCredit bureaus collect public records information, such as bankruptcy filings, and add these to consumers' credit reports. Some types of public records, such as tax liens and civil judgments, are no longer collected by the bureaus. Everything else on your credit report is there because a data furnisher reported the information to a bureau.\nThe bureaus don't just add anything to your report, though. As an example, Experian won't include anything related to a consumer's income, race, religion, personal lifestyle, political preference, friends or criminal record. END
 TITLE: What Are Credit Bureaus and How Do They Work? CONTENT: Who Uses Credit Reports?\n------------------------\nThe same creditors that send information to the credit bureaus often purchase credit reports and credit scores from the bureaus.\nThey use credit reports and scores to help determine whether to approve or deny an application and the interest rates on loans and credit cards they approve. Credit reports and scores can help creditors determine the likelihood that someone can repay a loan, and by extension the risk associated with lending the person money. Riskier borrowers (in other words, those with lower credit scores) get charged a higher interest rate because there's a greater chance they won't repay the entire loan or make regular credit card payments.\nAdditionally, creditors regularly purchase credit reports and scores for their current customers. They may decide to close your account, or raise or lower your credit limit, based on changes in your credit report.\nThe credit bureaus also sell credit reports to landlords, marketing companies and employers, but these reports don't include as much information as the reports that creditors receive. For example, the credit report an employer receives won't have your account numbers on it. END
 TITLE: What Are Credit Bureaus and How Do They Work? CONTENT: The Fair Credit Reporting Act Regulates Credit Bureaus\n------------------------------------------------------\nFederal and state laws govern what can and cannot appear in your credit reports and who can request a copy of your credit report.\nThe Fair Credit Reporting Act (FCRA), which was passed in 1970 and has been amended several times, is one of the most important federal credit reporting laws. Some of its major rules include:\n*   Consumers can request a free copy of their credit report from each credit bureau once every 12 months.\n*   Negative information, such as late payments, generally must be removed from credit reports after seven years, although certain bankruptcies can remain for 10 years.\n*   A person or company must have a \"permissible purpose\" to request a copy of a consumer's credit report. These include the consumer's permission or to make a lending decision after receiving an application.\n*   Consumers have the right to dispute information in their credit reports. The credit bureau must investigate non-frivolous disputes and verify, correct or delete the disputed information.\nThe FCRA applies to all consumer reporting agencies, not just the big three. END
 TITLE: What Are Credit Bureaus and How Do They Work? CONTENT: Why Do I Have Different Credit Scores for Each Bureau?\n------------------------------------------------------\nYou may find out you have several credit scores when you check your credit. Don't worry, having several different credit scores is completely normal.\nCredit scoring companies like FICO and VantageScore develop scoring models that analyze one of your credit reports from the major bureaus and spit out an easy-to-understand score. The credit bureaus also create credit scores based on their own credit reports.\nThese credit scores are generally designed to predict the likelihood that a person will fall 90 or more days behind on a payment. A higher score indicates a person is less likely to fall behind on a bill and is, therefore, more creditworthy. Creditors tend to offer the best rates and terms to people who have high credit scores.\nYour credit scores could be different if your credit reports aren't identical or if you're comparing scores from two different models. Both scenarios are quite common.\nCredit bureaus are required by law to share certain types of information. For example, you can add a fraud alert to your credit report if you think you've been the victim of identity theft, and creditors must then take extra steps to verify your identity before getting a copy of your credit report. The initial bureau must pass on your fraud alert request to the other two bureaus. However, the bureaus are competitors and don't share most of the information that's in their databases. As a result, there are often differences between your credit reports from TransUnion, Equifax and Experian.\nThere are also hundreds (if not more) of different credit scoring models. So, even if your three credit reports are identical, you could have different scores depending on which models are being used to do the calculations. END
 TITLE: What Are Credit Bureaus and How Do They Work? CONTENT: Get Your Credit Report for Free\n-------------------------------\nThe FCRA guarantees you one free credit report from each bureau every 12 months, which you can request online at AnnualCreditReport.com. Additionally, you can check your Experian credit report for free once every thirty days by signing up for an account on Experian.com. END
 TITLE: Understanding Secured Credit Cards CONTENT: What Is the Difference Between Secured and Unsecured Credit Cards?\n------------------------------------------------------------------\nMost credit cards are unsecured. Instead of requiring collateral in the form of a deposit, the issuer looks at your credit history and credit score to see if you're creditworthy. If you are, they issue the card.\nIf you have poor credit or a thin credit file (that is, little or no credit history), credit card issuers know that issuing you credit could be risky. That's where secured credit cards come in.\nTo open a secured credit card account, you'll have to put down a refundable security deposit. Typically, the amount of the security deposit will determine your credit limit (although some card issuers will offer a higher credit limit than your deposit). If you default on your credit card bill, the card issuer can use your deposit to pay off the balance. If you cancel your secured card or convert it to an unsecured card later on, you'll get your security deposit back as long as you've paid off your balance.\nAside from the security deposit, a secured credit card works just like any other credit card. You can use it in the same places that accept unsecured credit cards, and no one will know that it's secured. END
 TITLE: Understanding Secured Credit Cards CONTENT: If you're trying to rebuild your credit or have minimal credit history and need to build your credit, you've got a couple of options for doing so.\nYou may be able to become an authorized user on someone else's credit card account or have someone with good credit cosign on a credit card account for you. Parents often use these options to help their teens or college students establish credit. If you have bad credit, however, it may be hard to find someone willing to assume responsibility for your credit card charges.\nYou can also apply for a credit card tailored to people who have bad credit or a limited credit history. These are known as \"subprime\" credit cards. Unfortunately, unsecured cards offered to borrowers with poor credit often charge very high interest rates and fees.\nSecured credit cards may offer a better alternative. These cards, specifically designed to help people build credit, have many advantages:\n*   **You can get approved even with bad credit.** Card issuers will still check your credit history, but it's much easier to get approved for a secured card over getting an unsecured card. Because the security deposit eliminates risk for the credit card issuer, secured cards have much more lenient credit score requirements. Some secured credit cards don't even have a minimum credit score requirement.\n*   **Secured cards can help build credit.** At first glance, a secured credit card may seem similar to a debit card or a prepaid card. The key difference is that debit cards and prepaid cards don't report your payments to credit bureaus. As a result, using debit and prepaid cards won't help you build a credit history. As long as the secured credit card you're considering reports your payments to at least one of the three major consumer credit bureaus (Experian, TransUnion and Equifax), making on-time payments will help to improve your credit score.\n*   **A secured card can be a stepping stone to an unsecured card.** Many secured credit card issuers will convert your card to an unsecured card after you've demonstrated 12 months of on-time payments and improved your credit score. In some cases, you may need to request your card be converted, while other issuers will do it automatically. If your secured card doesn't offer this option, you can still apply for an unsecured credit card once your credit score is good enough. (You should regularly check your Experian credit report and credit score for free to see how they're improving.)\n*   **Some secured cards offer valuable benefits.** Credit cards offer benefits and fraud protection you won't get with cash or even a debit card. Some secured cards even offer benefits such as travel insurance, rental car insurance, damage or theft protection and extended warranty coverage. Many secured credit cards include free credit monitoring—a very useful benefit if you're trying to build your credit.\nOn the downside, secured credit cards often charge higher interest rates than unsecured credit cards, and many also charge fees. Credit limits are typically low, so you won't have the spending power you might have with a traditional credit card.\nFees and high interest rates aren't ideal, but if you have a limited credit history or a low credit score, a secured credit card is often your best choice. Think of a secured credit card as training wheels: By learning to manage a secured card responsibly, you can eventually move up to an unsecured credit card that offers better terms and a higher credit limit. END
 TITLE: Understanding Secured Credit Cards CONTENT: How to Get a Secured Credit Card\n--------------------------------\nAre you ready to get a secured credit card? As you compare different the best secured credit card offers, here's what you need to consider.\n### 1\\. Rates and Fees\nSecured credit cards tend to charge higher interest rates and fees than standard, unsecured cards, so review the card's annual percentage rate (APR), annual fee and any miscellaneous fees carefully. Pay special attention to the card's annual fee; some secured cards don't have one, but others have high fees, which may be billed monthly. In addition to the annual fee, see if there are any application fees, maintenance fees, processing fees or additional cardholder fees. Also, make sure the card has a grace period. You can avoid interest charges by paying your monthly statement balance in full before the grace period ends.\nWhere do you find all this information? Every credit card issuer is required to print its card rates and fees in a standard format known as a Schumer box. Here's an example of a Schumer box:  \nYou may need to hunt around a bit to uncover the Schumer box on a credit card's website; you can usually find it by clicking on links such as \"rates and fees\" or \"terms and conditions.\"\n### 2\\. Cardholder Benefits\nCompare the benefits various secured cards offer. A card's benefits aren't as important as its APR and fees, but if all else is equal, the card with better benefits is usually the better choice. For instance, if you travel often and plan to use your secured card to rent a car, benefits including rental car insurance or travel coverage would be helpful. If you plan to use your secured credit card to make a major purchase such as a new TV or computer, look for a card that offers extended warranty coverage and protection against accidental damage or theft for purchases.\n### 3\\. Additional Options\nWhen you apply for a secured card, look for a card issuer that also issues traditional, unsecured credit cards. This will make it easier to transition to an unsecured card when you're ready to do so. Also, find out the criteria for getting an unsecured card. Some card issuers will approve you for an unsecured card after 12 months of on-time payments.\n### 4\\. Deposit Requirements\nThe deposit amount on a secured card varies, but many secured cards require a minimum deposit of $200 and allow you to make a deposit of up to $2,000. Be sure you have the deposit ready and available to transfer as soon as you're approved; you'll need to do this to activate your new credit card. The credit card issuer keeps the deposit until you either close the account in good standing or transition to an unsecured card.\nIt's a good idea to make sure your deposit will be held safely. It should be kept in a separate account at an FDIC-insured institution. Some card issuers may even put your funds in a certificate of deposit (CD) so your money will earn a little bit of interest.\nSurvey your options for increasing your secured card's credit limit. For example, do you have to demonstrate on-time payments for a certain period before you can request a credit increase? If you're starting out with a very low credit limit, such as $200, it's helpful to know when you'll be able to increase the deposit on your secured card and in turn increase your credit limit.\n### 5\\. Credit Reporting\nTo make sure the card you're considering will actually help build your credit history, find out if the issuer reports your payments to at least one (and preferably all) of the three major consumer credit bureaus. If a card doesn't report your payment history to the credit bureaus, using it won't help you improve your credit scores. Many secured cards will promote the fact that they report to credit bureaus. If the one you're considering doesn't specify whether it reports to the bureaus, contact the card issuer to find out. END
 TITLE: Understanding Secured Credit Cards CONTENT: How to Use a Secured Credit Card\n--------------------------------\nYou've got your secured credit card in hand. Now what? You can use your secured card just as you would any credit card. As with any credit card, you'll get a statement each month. Make sure you have the funds available to make at least your minimum payment every month. Ideally, you'll completely pay off your balance every month.\nYou might be tempted to max out your new card on a big purchase. But before you hand over your card for that new TV, remember that the goal of your secured card is to help you build credit. To do that, use your card a few times each month to make small purchases, and always pay your bill on time. Limiting your purchases helps make sure you can cover your monthly payments. If possible, consider setting up auto payments to help make sure you don't miss a payment. Your history of on-time payments is the biggest factor in your credit scores, so staying consistent will gradually build your credit history and help to improve your credit scores.\nYou can carry a balance on your secured credit card, just like with any credit card, but doing so will incur interest charges. Another risk of carrying a balance is that it increases your credit utilization ratio, which is the percentage of your available credit you're using. A high credit utilization ratio (above 30%) can hurt your credit score. Finally, if your balance gets so big that you can't pay your bill, you'll eventually lose your security deposit. Paying off your balance in full each month helps to demonstrate that you're managing your credit responsibly.\nTo monitor your progress, keep an eye on your credit scores. Some secured card issuers will automatically approve you for an unsecured credit card as soon as you've made a certain number of on-time payments on your secured card. Others require you to apply. If your credit score climbs high enough, you may even be able to apply for an unsecured credit card through another issuer. END
 TITLE: Understanding Secured Credit Cards CONTENT: The Secured Card Solution\n-------------------------\nIf you have poor credit or no credit history, a secured credit card can offer an affordable way to build or rebuild your credit. With a credit card in hand, you can enjoy cardholder benefits, security and convenience features as well as more flexibility in making purchases.\nBefore applying for a secured credit card, check your credit report and credit scores to see which cards are within your reach. Then research your options, comparing each card's terms and conditions, to see which secured credit card best fits your needs. END
 TITLE: How to Rebuild Your Confidence in Using Credit Cards CONTENT: How Credit Cards Can Help Your Finances\n---------------------------------------\nMany people are intimidated by credit cards because of past experience, a friend's horror story or simply a lack of knowledge about how they work. But once you understand how your credit habits impact your credit card interest rate and credit score, you'll find plenty of reasons to ease your way back into using credit cards.\n### Good Credit Habits Build Your Credit\nThe single most important factor credit scoring models like FICO use to calculate your credit score is payment history. Making your credit card payments on time every month is vital to building and maintaining good credit.\nYour credit utilization rate, or the amount of available credit you're using, is the next biggest factor making up your credit score. Keeping your card balances low saves you money on interest while also helping you build credit. If you pay your balance in full by the due date, you don't even have to pay interest.\n### Good Credit Means Lower Interest\nWho cares about your credit? Lenders, landlords, employers and banks commonly look to credit when making a decision. That means you also should pay close attention to it. If you have good credit, you'll likely qualify for better interest rates and terms on loans and credit cards in the future.\n### Some Credit Cards Offer Rewards\nSome credit cards provide cash back or travel rewards when you use the card. You can earn your way to free hotel stays and flights, or take your rewards in the form of a check or statement credit, depending on the card. As long as you pay off the account in full every month, rewards cards can be valuable.\n### Credit Cards Help Manage Cash Flow\nAs long as you pay off your cards in full by the due date every month, you can use them as an interest-free loan when necessary. If a bill is due in a few days but you don't get paid until next week, for example, you may be able to charge it and give yourself a few weeks to pay it off before the credit card due date.\nIf you don't use a card in a given month and it has a zero balance, you still get credit for maintaining the card as agreed and don't have to make any payments. END
 TITLE: How to Rebuild Your Confidence in Using Credit Cards CONTENT: One way to get started (or restart) with credit cards is to take small steps. Here are two to consider.\n*   **Get a \"starter\" card.** If you have no credit or bad credit, you could start with a secured credit card. These cards require you to put down a deposit equal to the credit limit and usually have lower spending limits compared with unsecured cards. A lower limit will help reduce your risk of racking up high debts.  \n    Use it like any other credit card and build your credit with each on-time payment, as long as the card reports payments to the credit bureaus (check when you apply). When you reach the point where you are confident enough to open a non-secured card, you can close your secured card and get a refund for the original deposit.\n*   **Don't miss payments.** Set a reminder so you never miss a payment due date. It can take seven years for a late payment to drop off your credit report, so paying on time is essential for your credit. END
 TITLE: How to Rebuild Your Confidence in Using Credit Cards CONTENT: The Bottom Line\n---------------\nIf you use a credit card to pay for an expensive vacation, accessory or new TV you couldn't afford to buy with cash, you might be on track for more credit troubles. But if you use a card to only buy what you can afford to pay off in full each month, credit cards can provide many benefits, including improving your credit. END
 TITLE: What Credit Card Can I Get With a 600 Credit Score? CONTENT: Is 600 a Good Credit Score?\n---------------------------\nThe traditional FICO® Score☉ , which is the most widely used credit score by lenders, has a range of 300 to 850. Depending on where your credit score stands, it could fall into one of five categories. With a 600 credit score, you're firmly in the fair credit range.\nHaving a relatively low credit score typically results in higher interest rates on credit cards and loans. Also, many lenders have minimum credit requirements, so you could have a difficult time getting approved for certain cards. END
 TITLE: What Credit Card Can I Get With a 600 Credit Score? CONTENT: Best Credit Cards for a 600 Credit Score\n----------------------------------------\nThere are many different types of credit cards available. Depending on your goals and credit situation, you may consider one of the following:\n*   **Secured credit cards**: Designed primarily for people with bad or little credit, these cards function similarly to regular credit cards, but require an upfront security deposit as collateral. While you can get a secured credit card with fair credit, you may prefer an unsecured card if you can qualify for it and if the fees and interest are better than what you can find with a secured card.\n*   **Student credit cards**: Designed for college students, these cards are often available for people with limited or fair credit.\n*   **Store credit cards**: These cards are offered by retail stores and often allow you to earn rewards and get perks when you shop with the retailer. Most store cards are available to people with low credit scores.\n*   **Rewards credit cards**: These cards offer rewards in the form of cash back, points or miles. Most rewards credit cards are reserved for consumers with good credit or better, but some are available for fair-credit borrowers.\n*   **0% intro APR credit cards**: With one of these cards, you can enjoy no interest on purchases for an introductory period after you open an account. They're generally only available if you have good credit or better.\n*   **Balance transfer credit cards**: These cards function similarly to 0% intro APR cards, but provide an interest-free period on balances that you transfer from other credit cards. Balance transfer cards typically require that you have at least good credit.\n*   **Low-interest credit cards**: Instead of offering an introductory 0% APR period, these cards provide a low ongoing interest rate—typically under the current average credit card APR. You generally need very good or exceptional credit to get approved for one of these cards.\n*   **Small business credit cards**: If you own a small business, this type of card can help you manage your expenses and take advantage of certain business-related perks. Most of these cards target business owners with good credit or better, but there are some options if you have fair credit.\nAs you shop around and compare different card options, here are some credit cards for fair credit. END
 TITLE: What Credit Card Can I Get With a 600 Credit Score? CONTENT: ### Capital One QuicksilverOne Cash Rewards Credit Card\nYou may be able to qualify for this card if you've defaulted on a loan in the past five years or you've been building credit for fewer than three years, according to Capital One.\nThe Capital One QuicksilverOne Cash Rewards Credit Card charges a $39 annual fee, but also offers 1.5% cash back on every purchase you make. That's a common rewards rate for credit card users with good credit, and it's one of the best offers for fair-credit borrowers.\nThe card is unsecured but charges a relatively high APR, so make it a goal to pay off your balance in full every month. The minimum credit limit is $300, and you may be considered for a higher limit in as little as six months. END
 TITLE: What Credit Card Can I Get With a 600 Credit Score? CONTENT: ### Credit One Bank American Express® Credit Card\nCredit One Bank American Express® Credit Card\n---------------------------------------------\nApply\non Credit One Bank's website\nTerms Apply\n**Recommended FICO® Score\\***\nFair - Good\nCredit One Bank American Express® Credit Card\n---------------------------------------------\nRewards\n1% cash back on All Purchases\n##### Card Details\n*   Earn unlimited 1% cash back rewards on all purchases, terms apply\n*   $0 Fraud Liability ensures you won’t be responsible for unauthorized charges\n*   Retail Protection covers you if an eligible item is accidentally damaged or stolen, terms apply\n*   Get deals on shopping, dining, travel, and entertainment through Amex Offers\n*   Enjoy exclusive access to pre-sale tickets for some of the hottest nationwide concerts and events\n*   Know you’re covered when the unexpected happens while traveling with Travel Accident Insurance, terms apply\n*   If you are a Covered Borrower under the Military Lending Act, you may get a different offer\n[Rates and Fees](;ccr=23.99&pc=WKL7)\nAnother unsecured cash-back credit card, the Credit One Bank American Express® Credit Card offers unlimited 1% back on all of your purchases, with a $39 annual fee (terms apply). The card's APR is relatively high.\nThe card also comes with some special perks that aren't always available for fair-credit cardholders, including travel accident insurance, retail protection, access to Amex Offers and more. END
 TITLE: What Credit Card Can I Get With a 600 Credit Score? CONTENT: How to Improve Your Credit Score Before Applying for Credit Cards\n-----------------------------------------------------------------\nEven if your credit score is good enough to get a credit card for fair credit, you may want to take some time to improve your credit before you apply. Depending on the current state of your credit, this process can take time, but it could make it possible for you to get approved for a better credit card.\nThe best place to start with improving credit is to check your credit report and credit score. These will give you a better idea of what's impacting your credit score and how you can address it.\nTo improve your credit before applying for a card:\n*   Pay your bills on time, every time.\n*   Get caught up on past-due payments, and pay off collection accounts.\n*   Pay down high credit card balances.\n*   Avoid closing old credit card accounts.\n*   Dispute inaccuracies with the credit bureaus.\n*   Avoid applying for new credit unless absolutely necessary.\n*   Use Experian Boost™† to get credit for on-time utility and phone payments.\nYou can also ask a family member who has a good credit history to add you as an authorized user on one of their credit card accounts. This arrangement results in the entire history of the account being added to your credit reports, which can help improve your credit score. END
 TITLE: What Credit Card Can I Get With a 600 Credit Score? CONTENT: Continue to Monitor Your Credit After Approval\n----------------------------------------------\nWhile your goal right now may be to get a new credit card, it's important to continue to monitor your credit after you get approved. It's especially important if you expect to take on more debt in the future for major purchases like vehicles or a home.\nBuilding and maintaining a high credit score can also allow you to save on auto and homeowners insurance, and make it easier to get into an apartment. Some employers also check your credit report, so monitoring your credit and addressing potential concerns as they come up can help keep you on the right track. END
 TITLE: How to Choose and Use Your First Credit Card CONTENT: Decide if You're Ready for a Credit Card\n----------------------------------------\nCredit cards can be a helpful financial tool due to their convenience and the number of benefits and protections they provide to cardholders.\nTo start, they may protect you from fraud since credit cards generally come with zero liability for unauthorized purchases. That means you're more protected if someone steals your credit card or card number since your card isn't directly tied to your bank account like a debit card. They may also offer benefits on eligible purchases, such as extended warranties or a refund if something you buy is damaged or stolen soon after the purchase. And then there are the rewards—cash back, miles and points that can help you save money or travel for free later.\nOnce you've determined having a credit card appeals to you, it's time to take a look at your financial habits to make sure you'll be able to manage it responsibly.\nCredit cards have a spending limit, but there are few other guardrails in place to make sure you don't take on a debt you can't afford to pay off. When you pay less than the full amount on your bill, a credit card's high interest rate can start to pile on debt. Some people find that it can take years to pay off built-up credit card debt—especially if they continue to use their card while paying down the balance.\nAs you think about whether you should get a credit card, consider whether you're looking for a way to increase your spending power, want a card for emergencies or want a card for everyday purchases.\nIf you can treat a credit card like a debit card, only using it for purchases you can pay off in full each month, then you may be able to benefit with little downside. But if you view your credit limit as \"free money,\" max out your card (in other words, spend until you hit the limit) and then only make minimum monthly payments, you can wind up paying lots of interest and hurt your credit scores. END
 TITLE: How to Choose and Use Your First Credit Card CONTENT: Check Your Credit Report and Score\n----------------------------------\nWhen you're ready to apply for your first credit card, a good first step is to check your credit reports and scores. You can get a free copy of your Experian credit report and a free FICO® Score☉ from Experian.\nCredit card issuers will generally check your credit reports and a credit score to help determine if you can qualify for a credit card as well as what your interest rate and credit limit will be. The better your credit, the better the chances of getting approved for a card with a low rate and high limit.\nIf you've never had a loan or credit card before, you might not have a credit report or score. You may still be able to qualify for certain credit cards, but your options will be limited until you build up your credit history. END
 TITLE: How to Choose and Use Your First Credit Card CONTENT: Research the Different Type of Credit Cards\n-------------------------------------------\nYou may get overwhelmed by the hundreds—even thousands—of options as you try to figure out which credit card should be your first. Narrowing in on the type of credit card you want and then deciding from within that category can help. Many people find that secured or student cards are a good first card:\n*   **Secured credit cards**: When you open a secured card, you'll give the company a refundable security deposit, which will often be the same as your credit limit. The card issuer holds on to this money and can keep it if you fall behind on your bills, or give it back to you when you close the account after paying your bill in full. Many secured cards have high fees, but there are a few options with low or no annual fee and favorable terms.\n*   **Student credit cards**: Student cards are another popular first option as they're unsecured cards (no security deposit required), but you'll need to be attending postsecondary education to qualify. Some of the best options offer rewards and don't have an annual fee, although you may start with a low credit limit.\nThere are many other types of credit cards, such as rewards cards or cards that offer promotional interest rates that make them a good option for making large purchases. Those cards tend to have stricter requirements and can be difficult to get as your first card.\nThere's also some overlap between the categories. For example, some secured and student cards offer rewards as well.\nCompare Rates, Fees and Benefits\n--------------------------------\nOnce you narrow in on the type of card you want, you can compare the cards within that category to figure out which one is best for you. Generally, you'll be comparing the fees, interest rates and cardholder benefits:\n*   **Credit card fees**: Some cards have an annual fee (a few even have monthly fees) you'll need to pay to open and keep the card. Additionally, there may be fees for certain actions, such as a foreign transaction fee if you use your card to make a purchase in a foreign currency, or a late fee that's charged if you don't make at least your minimum payment by the bill's due date. Look for cards with few and low fees to save money and get the most benefit out of your card.\n*   **Interest rates**: Credit cards display their interest rates as annual percentage rates (APRs). The higher the APR, the more interest you'll have to pay when you carry a balance from one month to the next. With most cards, you can avoid paying any interest by paying your balance in full every month. However, if you use the card for a cash advance, you'll almost always start to accrue interest immediately.\n*   **Rewards**: Some cards offer an intro bonus to new cardholders who meet the requirements, such as an extra $100 cash back after making $500 worth of purchases. These promotions aren't common on student and secured cards, but you can find cards with ongoing rewards, such as cash back on your purchases. Different cards may offer various intro bonus and ongoing rewards rates.\nHow to Use Your Credit Card Responsibly\n---------------------------------------\nOnce you get your first credit card, there are a few practices that you can follow to avoid interest and fees while building good credit. These guidelines can also help you build up your credit score, as long as the credit card you've chosen reports your payment history to the credit bureaus:\n*   **Only purchase what you can pay off in full.** If you're regularly using your new credit card, only spend what you can afford to pay off in full. It can be hard to keep track of how much you spend throughout the month, but you can create a budget and use an app that connects to your bank and credit card accounts to quickly sync and track everything in one place.\n*   **Always make at least your minimum payment.** Pay off as much of your bill as you can each month, and always make at least the minimum payment on time. Missing your payment can lead to late payment fees. Also, once you're 30 days past due, the card company may report the late payment to the credit bureaus, which can hurt your credit scores.\n*   **Don't max out your card.** While your card's credit limit is the most you're allowed to spend, using a large portion of your available credit can hurt your credit scores. If you're focused on improving your credit, try to never let your balance go above 30% of your credit card's limit.\n*   **Track annual fees.** If you get a card that charges an annual fee, mark your calendar for when the annual fee will be due so you can prepare for its impact on your finances. Before the company charges the fee, call and ask if there's any way to reduce or waive it. If there isn't, and you're not getting a lot of value from the card, consider closing the account to avoid the fee.\nWhat to Do if You're Denied a Credit Card\n-----------------------------------------\nDon't fret if you don't get approved with your first application—you may be able to qualify for other credit cards. But first, try to figure out why your application was denied.\nAsk the card issuer if there was a specific reason, such as your income being too low or not meeting one of the basic eligibility requirements. If the card issuer determined your credit wasn't good enough for approval and denied your application, it must send you an adverse action letter explaining this. If you've received an adverse action letter in the past 60 days, you're eligible to receive a free copy of your credit report through Experian and the other credit bureaus.\nYou can then focus on the issue by increasing your income or building your credit before trying again. Or, if you were denied because you don't have any credit, you could look for a card that doesn't require a credit check, such as the The OpenSky® Secured Visa® Credit Card. If you pay utility, internet or cellphone bills, Experian Boost™† may be able to give you a much-needed lift.\nGet Preapproved for a Credit Card\n---------------------------------\nIf you're unsure of which card to get or whether you're likely to get approved, try using Experian CreditMatchTM to compare offers from Experian's credit card partners. The program won't impact your credit scores, but it can still match you to offers based on your credit. END
 TITLE: How to Choose and Use Your First Credit Card CONTENT: Compare Rates, Fees and Benefits\n--------------------------------\nOnce you narrow in on the type of card you want, you can compare the cards within that category to figure out which one is best for you. Generally, you'll be comparing the fees, interest rates and cardholder benefits:\n*   **Credit card fees**: Some cards have an annual fee (a few even have monthly fees) you'll need to pay to open and keep the card. Additionally, there may be fees for certain actions, such as a foreign transaction fee if you use your card to make a purchase in a foreign currency, or a late fee that's charged if you don't make at least your minimum payment by the bill's due date. Look for cards with few and low fees to save money and get the most benefit out of your card.\n*   **Interest rates**: Credit cards display their interest rates as annual percentage rates (APRs). The higher the APR, the more interest you'll have to pay when you carry a balance from one month to the next. With most cards, you can avoid paying any interest by paying your balance in full every month. However, if you use the card for a cash advance, you'll almost always start to accrue interest immediately.\n*   **Rewards**: Some cards offer an intro bonus to new cardholders who meet the requirements, such as an extra $100 cash back after making $500 worth of purchases. These promotions aren't common on student and secured cards, but you can find cards with ongoing rewards, such as cash back on your purchases. Different cards may offer various intro bonus and ongoing rewards rates. END
 TITLE: How to Choose and Use Your First Credit Card CONTENT: How to Use Your Credit Card Responsibly\n---------------------------------------\nOnce you get your first credit card, there are a few practices that you can follow to avoid interest and fees while building good credit. These guidelines can also help you build up your credit score, as long as the credit card you've chosen reports your payment history to the credit bureaus:\n*   **Only purchase what you can pay off in full.** If you're regularly using your new credit card, only spend what you can afford to pay off in full. It can be hard to keep track of how much you spend throughout the month, but you can create a budget and use an app that connects to your bank and credit card accounts to quickly sync and track everything in one place.\n*   **Always make at least your minimum payment.** Pay off as much of your bill as you can each month, and always make at least the minimum payment on time. Missing your payment can lead to late payment fees. Also, once you're 30 days past due, the card company may report the late payment to the credit bureaus, which can hurt your credit scores.\n*   **Don't max out your card.** While your card's credit limit is the most you're allowed to spend, using a large portion of your available credit can hurt your credit scores. If you're focused on improving your credit, try to never let your balance go above 30% of your credit card's limit.\n*   **Track annual fees.** If you get a card that charges an annual fee, mark your calendar for when the annual fee will be due so you can prepare for its impact on your finances. Before the company charges the fee, call and ask if there's any way to reduce or waive it. If there isn't, and you're not getting a lot of value from the card, consider closing the account to avoid the fee. END
 TITLE: How to Choose and Use Your First Credit Card CONTENT: What to Do if You're Denied a Credit Card\n-----------------------------------------\nDon't fret if you don't get approved with your first application—you may be able to qualify for other credit cards. But first, try to figure out why your application was denied.\nAsk the card issuer if there was a specific reason, such as your income being too low or not meeting one of the basic eligibility requirements. If the card issuer determined your credit wasn't good enough for approval and denied your application, it must send you an adverse action letter explaining this. If you've received an adverse action letter in the past 60 days, you're eligible to receive a free copy of your credit report through Experian and the other credit bureaus.\nYou can then focus on the issue by increasing your income or building your credit before trying again. Or, if you were denied because you don't have any credit, you could look for a card that doesn't require a credit check, such as the The OpenSky® Secured Visa® Credit Card. If you pay utility, internet or cellphone bills, Experian Boost™† may be able to give you a much-needed lift. END
 TITLE: How to Choose and Use Your First Credit Card CONTENT: Get Preapproved for a Credit Card\n---------------------------------\nIf you're unsure of which card to get or whether you're likely to get approved, try using Experian CreditMatchTM to compare offers from Experian's credit card partners. The program won't impact your credit scores, but it can still match you to offers based on your credit. END
 TITLE: How to Make the Most of Travel Credit Cards CONTENT: What Is a Travel Rewards Credit Card?\n-------------------------------------\nAlthough they come in many shapes and sizes, most travel credit cards fall into these three main categories.\n1.  **Airline miles or hotel points**: These are airline or hotel co-branded cards such as the Delta SkyMiles® Gold American Express Card and the Marriott Bonvoy Boundless™ credit card from Chase.\n    *   **How they work**: These cards earn airline miles or hotel points with a specific loyalty program. Cardholders can then redeem those airline miles for award tickets and other things like gift cards and magazine subscriptions, or put hotel points toward free stays among other options.\n    *   **Why you might want one**: In addition to earning points or miles toward free flights and nights, co-branded cards also offer valuable perks with their associated airline or hotel program. For instance, the Delta SkyMiles® Reserve American Express Card includes access to Delta's Sky Club airport lounges when traveling plus free checked bag, priority boarding and a companion ticket to use toward one free domestic round-trip itinerary (plus taxes) each year.The Marriott Bonvoy Brilliant™ American Express® Card includes $300 in statement credits each year toward Marriott purchases and mid-tier gold elite status with perks like room upgrades and opportunities to earn bonus points. Terms apply to American Express offers.\n2.  **Fixed rate or cash back**: The second type of travel rewards credit card is fixed-rate or cash back cards. These are products like the Capital One Venture Rewards Credit Card.\n    *   **How they work**: For every dollar you spend with one of these cards, you earn a set number of miles (confusingly, they're not airline miles but simply their own proprietary points that also happen to be called miles). For example, the Capital One Venture Rewards Credit Card earns 2 miles per dollar spent on every purchase. Cardholders can then redeem these miles at a fixed rate—usually 1 cent apiece—toward travel purchases. Sometimes you get less value when redeeming these miles for non-travel items like groceries or a restaurant tab.\n    *   **Why you might want one**: Fixed-rate cards offer a lot of flexibility when it comes to using your miles. That's because you are basically paying for a travel purchase with your card like normal and then redeeming miles for it as cash back. Unlike redeeming airline miles for an award ticket or hotel points for a free night, you are not stuck waiting for award flights or nights to open up.\n3.  **Transferable points**: These include products like the Chase Sapphire Preferred® Card.\n    *   **How they work**: These cards earn points in the issuers' own loyalty program that you can then transfer to a number of different travel partners. For instance, American Express Membership Rewards points can be transferred to 19 airline frequent-flier programs including Delta SkyMiles and Singapore Airlines KrisFlyer. Likewise, Chase Ultimate Rewards points can transfer to 13 different airline and hotel partners, including United MileagePlus and Marriott Bonvoy.\n    *   **Why you might want one**: Transferable points are valuable because you can redeem them for travel with many airlines or hotels rather than committing to a single one. Just rack up points on everyday purchases and then transfer them to one partner or another for a specific award when you need it. You can also use these points to \"top up\" your regular mileage or hotel points accounts for an award booking if you do not already have enough points from flying or hotel stays. Earning transferable points is also like having an insurance policy against any negative changes, like raising award prices, one particular airline or hotel might make to its individual loyalty program.\nThere is some overlap between fixed-rate and transferable points as many transferable points can also be redeemed at fixed rates for travel and other purchases. END
 TITLE: How to Make the Most of Travel Credit Cards CONTENT: Which Benefits Do Travel Credit Cards Offer?\n--------------------------------------------\nThere are a lot of reasons you might want to apply for one type of credit card over another. Here are the benefits to consider when deciding which one might be best for you.\n**Sign-up bonuses**: Travel credit cards often come with flashy sign-up offers that can be worth a lot of money toward free travel. Airline and hotel co-branded cards offer tens of thousands of points or miles that can put free flights or nights within easy reach. For their part, fixed-rate cards often offer bonuses totaling up to hundreds of dollars in cash back.\n**Day-of-travel perks**: Airline credit cards come with perks like free checked bags and priority boarding that can make a big difference to your airport experience. Hotel credit cards sometimes offer on-property credits for things like restaurant bills and spa treatments during hotel stays that can make a vacation that much more enjoyable. Several high-end products that earn transferable points, like The Platinum Card® from American Express, also lure potential cardholders with benefits like airport lounge access and refunds for airline incidental fees like seating assignments as well as automatic elite status with both Hilton and Marriott.\n**Trip insurance**: Travel rewards cards tend to include top-rate travel protections such as insurance for trip delays or cancellations as well as lost luggage. The Chase Sapphire Reserve® will reimburse you up to $500 for things like meals, toiletries and lodgings on travel delays over six hours and includes primary insurance on rental cars so you can waive the agency's coverage and not worry about dents and dings.\n**Credits and refunds**: More and more travel credit cards are beginning to offer refunds for Global Entry or TSA PreCheck application fees of between $85 and $100, which is not only a great added value to their perks portfolios, but also a fantastic benefit that makes the airport experience much more bearable.\nWhile many travel rewards credit cards offer similar perks, they can vary quite a lot from card to card, so be sure to read the fine print before applying. END
 TITLE: How to Make the Most of Travel Credit Cards CONTENT: Are Travel Credit Cards Worth It?\n---------------------------------\nA few travel credit cards, like the Capital One VentureOne Rewards Credit Card, do not have annual fees. Many more cost around $95 per year. Still others cost several hundred dollars per year to carry.\nDeciding whether a travel credit card is worth it to you will depend on how many of its benefits you will use, and whether the benefits outweigh the annual fee.\nThink about how often you travel each year. If you don't fly frequently or don't think you'd take advantage of an airline credit card's airport lounge access or free checked bag benefits, it might not be worth applying for one. In the same way, what good is elite status with a hotel chain if you don't actually spend several nights a year hanging out at their hotels and enjoying perks like room upgrades and free high-speed Wi-Fi?\nOne final consideration: Many higher-end travel rewards credit cards require potential applicants to have good to excellent credit. Before applying, check your credit score (which you can do for free with Experian), and see if your score is within the average range for applying for a specific card. END
 TITLE: How to Make the Most of Travel Credit Cards CONTENT: How to Use a Travel Credit Card to Maximize Rewards\n---------------------------------------------------\nThere are several strategies you can use to squeeze as much value as possible from your travel credit cards, and much has been written on the topic. Here are a few key takeaways to make sure you're getting the most from your rewards card.\n1.  1.  **Meet the bonus requirements.** Your first step should be to make sure you earn the intro bonus. That usually involves spending a certain amount of money on purchases within a set time frame. For example, you can earn 40,000 TrueBlue points with the JetBlue Plus Card by spending $1,000 on purchases within the first 90 days of account opening. Not hitting that spending threshold is equivalent leaving hundreds of dollars of value on the table.\n    2.  **Maximize earning categories.** Many travel rewards cards earn multiple points or miles per dollar at specific merchants like gas stations or grocery stores. Making sure you use your card specifically on purchases that score bonuses can up your earning dramatically.\n    3.  **Redeem for the right things.** Be certain that what you spend your points or miles on is netting you a good value. If you redeem miles from the Capital One Venture Rewards Credit Card for travel purchases or gift cards, you get 1 cent per mile in value. But if you redeem them for other expenses, you only get a half-cent, which is not worth it.\n    4.  **Leverage all the benefits.** If you have a premium product like The Platinum Card® from American Express, take advantage of its many value-added benefits, such as $200 in airline incidental fee credits, up to $200 savings on Uber rides or eats annually, a Global Entry or TSA PreCheck application reimbursement, and access to Amex Centurion Lounges, Delta Sky Clubs and Priority Pass lounge locations at airports around the world. By doing so, you can reap hundreds of dollars' worth of value each year.\n    5.  **Know your card's comprehensive coverage**: Using your travel rewards card for travel purchases also means that its travel protections and coverage will extend to your trip. For this reason, it is also important to use a credit card that includes such protections to pay for a trip. If you don't, you could end up having to pay hundreds or even thousands of dollars if things go awry.\nTravel credit cards can be powerful tools in any traveler's wallet. Not only do they allow consumers to earn points and miles toward free travel, they also provide valuable travel-related benefits such as trip protection.\nBecause there are more travel credit cards available than ever before, consumers have some phenomenal choices. But it also means finding one that might be right for you can be complicated. Think about which type of travel credit card will earn you the type of rewards you can use the most, what travel-related benefits you are looking for, and which card has bonus earning categories you can maximize with your usual spending habits. Finally make sure its annual fee is within your budget. By thinking about those few major factors, you will home in on the right rewards card for your needs. END
 TITLE: Maximize Your Travel Rewards With These Tips CONTENT: 1\\. Sign Up for Travel Rewards\n------------------------------\nIt's fast and free to sign up for pretty much any airline frequent-flier program and hotel points program. You usually only need to enter your name and email address to do so. Simply by signing up, you'll be ready to earn miles when you fly or points when you stay at hotels. You will also automatically be registered for email deals and promotions that can earn you even more rewards and score you big discounts on travel. END
 TITLE: Maximize Your Travel Rewards With These Tips CONTENT: 2\\. Pick the Right Program\n--------------------------\nThe next step is deciding which rewards programs will be most useful to you.\n*   *   **Airline miles**: Do you want airline miles you can redeem for free flights? If so, is there a certain airline or group of airline partners you fly the most? Focus your flight activity on one or two airlines that you use most frequently so you can rack up miles with them when traveling.\n    *   **Hotel points**: Would you get use out of hotel points that you can put toward free stays? Do you usually stay at one company's hotel brands more than the others? The major hotel chains include dozens of brands now and have thousands of hotels around the world. For example, Marriott includes 30 brands, such as Sheraton, Westin and Courtyard, while Hilton has nearly 20, including Embassy Suites and DoubleTree. When planning travel, try to concentrate your stays with the brands of one company or another so you can more quickly earn points with a main loyalty program.\n    *   **Transferable points**: Some travel rewards credit cards earn points you can transfer to different airline and hotel partners. For example, the Chase Sapphire Preferred® Card earns Ultimate Rewards points you can convert into miles with 10 airline partners, including JetBlue, Southwest and United, plus three hotel partners, including Hyatt and Marriott. The Platinum Card® from American Express earns Membership Rewards points that transfer to 19 airline partners, including Delta and Hawaiian Airlines, as well as hotels such as Hilton and Marriott.  \n        Transferable points are a great choice for folks who are not loyal to a single airline or hotel chain. Because you can send your points to the frequent-flier or hotel program you want to use, you don't have to spend years flying or staying with a single company to earn free reward travel.\n    *   **Cash back points**: On the other hand, you might prefer a simple cash back rewards program where your spending gets you a solid rate of return. For instance, the Capital One Venture Rewards Credit Card earns 2 miles per dollar spent on all purchases. Miles are worth 1 cent each when you redeem them for travel or as credits to \"erase\" eligible travel purchases from your statement using Capital One's Purchase Eraser tool within 90 days of the date the they're posted to your account. This effectively allows you to get up to 2% back on all your spending, when redeemed for travel, without having to master an airline mileage or hotel points program to use your points. END
 TITLE: Maximize Your Travel Rewards With These Tips CONTENT: 3\\. Get a Travel Rewards Credit Card\n------------------------------------\nOnce you home in on the right type of rewards program for your needs, it's time to think about getting a credit card from that program. Travel rewards credit cards are the single best way to earn a lot of points or miles quickly without even having to travel. Here are some of the most important reasons to open one. END
 TITLE: Maximize Your Travel Rewards With These Tips CONTENT: *   Chase Sapphire Preferred® Card: Earn 100,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,250 toward travel when you redeem through Chase Ultimate Rewards, but these points can also be transferred to the loyalty programs of 10 partner airlines and three hotel chains for free flights or nights. The card's annual fee is $95. END
 TITLE: Maximize Your Travel Rewards With These Tips CONTENT: *   Southwest Rapid Rewards® Premier Credit Card: Earn up to 40,000 bonus points after you spend $1,000 on purchases in the first 3 months your account is open. In addition, during the first year, new cardholders can earn 3 points per dollar on dining, including takeout and select delivery services. The annual fee is $99.\n*   Marriott Bonvoy Boundless™ Credit Card: For a limited time, this card is offering 100,000 bonus points to new cardholders who spend $5,000 on purchases within 3 months of account opening. That's enough for two nights at most Marriott hotels around the world, including brands like Westin and Sheraton. The annual fee is $95 per year. END
 TITLE: Maximize Your Travel Rewards With These Tips CONTENT: 4\\. Put Expenses on Your Travel Rewards Credit Card\n---------------------------------------------------\nAfter you apply for a travel rewards credit card and earn its sign-up or intro bonus, you can boost your points even more by charging travel and other purchases on it. Many travel credit cards even earn bonus points on spending at places such as supermarkets and gas stations. END
 TITLE: Maximize Your Travel Rewards With These Tips CONTENT: 5\\. Other Ways to Earn Travel Rewards\n-------------------------------------\nBeyond simply spending every single dollar on a travel credit card, there are plenty of other ways to boost your earning with rewards programs.\n*   **Online shopping portals**: Many U.S. airlines have online shopping portals. For example, American Airlines' portal is called AAdvantage eShopping. These are basically online malls with links to major retailers like Target, Apple and Best Buy among hundreds of others. When you log in to the online portal with your frequent-flier number and click through to a particular store's website to make a purchase, you can earn anywhere from 1 to 30 bonus miles per dollar spent on top of what you would normally earn just for using your credit card.\n*   **Dining rewards**: Many airlines and hotels partner with the Dining Rewards Network. Just look for the sign-up page on your main airline or hotel loyalty program's website. Register with your loyalty number and a rewards credit card. Then, when you dine out at any of the thousands of participating restaurants and use your linked card to pay, you will automatically earn additional points or miles per dollar on your tab.\n*   **Promotions and partners**: Airlines regularly offer their frequent fliers bonus miles for everything from flying new routes to signing up for a newsletter or replying to a specific tweet. Hotels post seasonal promotions that reward their members for things like staying at a particular brand within the company or for booking stays of two nights or more. Be sure to read the emails you get from your travel rewards programs to make sure you're not missing out on the opportunity to earn bonus points and miles. END
 TITLE: Maximize Your Travel Rewards With These Tips CONTENT: Get Ready for Takeoff\n---------------------\nIt's easier than ever to earn travel rewards worth hundreds or even thousands of dollars these days. Just by signing up for airline and hotel loyalty programs, you'll be ready to start earning as soon as you fly or stay. Opening and using a travel rewards credit card is another great way to earn rewards since many offer sign-up bonuses worth hundreds of dollars in free travel, the ability to earn bonus miles on everyday spending and valuable benefits that you can put to use when you travel. Think about the kinds of travel rewards you want, sign up for a credit card with those programs, and start earning. You'll be booking free travel before you know it. END
 TITLE: What Is a Credit Limit and What Determines My Limit? CONTENT: How Is Your Credit Limit Determined?\n------------------------------------\nCreditors want to offer you a high enough credit limit that you'll be able to use the card or credit line freely, but not so high that you could take on debt you can't afford to repay. To help them determine the credit limit on a new or existing account, creditors will look at a variety of factors. These may include:\n*   Your current income, debts and your debt-to-income ratio (DTI)\n*   Your credit history and score\n*   Your history with the creditor\n*   The current economic environment and the creditor's business goals\nYour income is one thing but, as you can see, creditors are also interested in how it compares to existing debt obligations including other loans and credit cards you already have. Creditors use DTI to help determine whether you'll be able to easily make minimum payments on all your accounts if you take on additional debt. After all, even if you make a six-figure salary, you may not have room in your budget to pay off a credit card balance if most of your income goes to paying your mortgage.\nAdditionally, credit card issuers consider how much credit they're already extending to you across all your accounts. As a result, your application for a new credit card might be denied because you're maxed out on the cards you already have.\nYour credit scores are another factor creditors look at when deciding whether to approve or deny you credit and the credit limit you receive. They also affect your interest rate. END
 TITLE: What Is a Credit Limit and What Determines My Limit? CONTENT: How Can Your Credit Limit Impact Credit Scores?\n-----------------------------------------------\nThe credit limit on your revolving accounts can impact your credit scores because credit limits are half of the credit utilization ratio equation—with the other half being your balance.\nYour utilization ratio is the second most important factor in your credit scores, and is calculated on individual revolving accounts as well as on an overall basis. In either case, lower utilization ratios are usually better for your scores. In fact, consumers with excellent credit tend to have very low credit utilization, while those with lower scores tend to have high credit utilization.\nTo find the utilization rate of an account, review the balance listed for the account on your credit report and divide what you find by the account's credit limit. For example, a credit card that has a $1,000 balance and $4,000 credit limit has a 25% utilization ratio.\nYour utilization ratio can also be especially important because most credit scores only look at your _current_ utilization ratio, making it one of the few major scoring factors you can quickly change. When your balance stays the same, a credit limit decrease leads to a higher utilization rate. However, paying down your balance or getting a credit limit increase leads to a lower utilization rate. END
 TITLE: What Is a Credit Limit and What Determines My Limit? CONTENT: Why Your Credit Limit Might Have Changed\n----------------------------------------\nWhile your account is assigned a credit limit when you open it, the creditor can choose to increase or decrease in the future. There are different reasons why a creditor might decide to change your credit limit.\nFor example, the company **may lower your credit limit** if:\n*   Your credit score drops\n*   You miss payments\n*   You take on more debt (including debts from other creditors)\n*   You infrequently use the account\n*   Your buying behavior changes\nOn the other hand, creditors may **increase your credit limit** when:\n*   Your credit score improves\n*   Your income increases (and you report the increase)\n*   You have a good history of paying your bills on time\n*   You request a credit limit increase\nCreditors might also change credit limits due to factors that are outside your control, such as when economic conditions are rough.\nAnd, some actions can be interpreted in different ways depending on the circumstances. For example, someone who carries credit card debt might see their credit limits lowered if the creditor thinks they're at risk of missing a payment. Or, the creditor may increase their credit limit if they think the person wants or needs a higher limit and can afford to take on more debt. END
 TITLE: What Is a Credit Limit and What Determines My Limit? CONTENT: What Happens When You Go Over Your Credit Limit?\n------------------------------------------------\nIn the past, credit card issuers may have let you go over your credit limit and charged an over-limit fee for doing so. However, the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 restricted the use of over-limit fees. Today, if there is a fee, you'll first have to opt in.\nIf you haven't opted in, the creditor may decline any transactions that would lead your balance to go over your limit. Or, your card issuer may allow you to go over the limit on a case-by-case basis without charging you a fee. When you're allowed to go over your credit limit, you may have to repay the over-limit amount right away, or repay it plus your minimum payment with your next bill.\nAs you'll be using all—and then some—of your credit limit, going over your limit can also lead to a high utilization rate and hurt your credit scores. If you want to avoid this, you could pay down your balance before the end of your statement period so your card issuer will report the lower balance to the credit bureaus. END
 TITLE: What Is a Credit Limit and What Determines My Limit? CONTENT: Check Your Credit Limits and Utilization for Free\n-------------------------------------------------\nKeeping track of all your credit limits can be difficult if you have multiple credit cards and lines of credit. However, you can check your Experian credit report for free through AnnualCreditReport.com or through Experian directly. You'll then be able to see a list of all your accounts and their most recently reported balances and credit limits. Experian's service also automatically calculates your utilization rate for each account and your overall utilization rate. Lowering your credit utilization and potentially lifting your scores can help you secure lower rates on loans and credit cards, which can open the door to new financial possibilities. END
 TITLE: Can I Increase My Credit Limit on a Secured Credit Card? CONTENT: There are two types of credit cards: unsecured and secured. When you apply for an unsecured credit card, the bank will typically approve or deny your application based on your record of on-time debt payments, past delinquencies and current credit score, among other possible factors. You're not required to put down any collateral to \"secure\" the credit line.\nIf you have poor credit or a limited credit history (known as a \"thin file\"), you may not qualify for an unsecured credit card. That's where secured cards come in. Because they require a deposit to open the account, secured cards are often a good option for people who can't qualify for an unsecured card.\nA secured credit card can be a great tool for establishing or rebuilding your credit, since the barrier to entry is lower than with an unsecured card. The OpenSky® Secured Visa® Credit Card Card, for example, doesn't require a credit check at all, and reports your account activity to all three national credit bureaus: Experian, TransUnion and Equifax. END
 TITLE: Can I Increase My Credit Limit on a Secured Credit Card? CONTENT: How a Secured Credit Card Works\n-------------------------------\nThe first step in opening a secured credit card is putting down a deposit. The size of the deposit depends on the bank or lender issuing a card. One company may require a $200 deposit but give you a $500 credit line, while another could make your deposit amount and credit line one and the same. You may want to compare different secured credit cards to figure out which terms make the most sense for you.\nOnce you put down the deposit and open the account, you can use your secured credit card the same way you'd use an unsecured card. You can cover one-off expenses, buy groceries, pay recurring bills—or use it for essentially anything you'd put on a standard card. Just remember that the deposit you put down to get the card doesn't serve as a form of payment: You still make payments on your card every month. The deposit is just there as insurance for the issuer in case you stop making payments.\nAs soon as you start making purchases and payments on your secured card, your lender will likely report the activity to one or more of the three national credit bureaus. That's a good thing—as long as you use your card responsibly—because all of that activity will help you develop a history of on-time payments and responsible credit use, helping you build a strong credit score.\nIf your secured card has a low credit limit, you'll need to be careful about how you use it. In addition to paying your bills on time, it's important to keep your credit utilization ratio low. Credit utilization refers to how much of your credit line you're using. A good rule of thumb is to aim for 30% or less credit line usage at all times. Not only does this help your credit score, but it may also help you build a habit of keeping balances low and thus avoiding high interest charges.\nKeeping your credit utilization low can be more challenging with a low credit limit. For example, if you put down a $300 deposit and are granted a credit limit of the same amount, you'll need to keep your balance under $100 at all times to avoid hurting your credit score. If you were hoping to put a large purchase on the card or want a bit more flexibility, you may wonder what options you have to increase your credit limit. END
 TITLE: Can I Increase My Credit Limit on a Secured Credit Card? CONTENT: Can You Increase a Secured Credit Card Limit?\n---------------------------------------------\nGetting an increased credit limit on your secured credit card comes down to the card issuer's policy. The Secured Mastercard® from Capital One, for instance, comes with a potential credit line increase in as little as six months with no extra deposit needed, while the Merrick Bank Double Your Line® Secured Visa® Card allows you to raise your credit line up to $3,000 whenever you choose simply by increasing your deposit.\nNot all unsecured credit cards offer an easy way to increase your credit line or a path to an unsecured line. The Platinum Elite Mastercard® Secured Credit Card and the Platinum Select Mastercard® Secured Credit Card, both from First Progress, fall into this category. However, both are available to borrowers with low credit scores or limited credit histories, so they could serve as a stepping stone toward other accounts.\nEven if a secured card does not offer a way to increase your credit line or switch to an unsecured account, it may help you build your credit enough to qualify for an unsecured card from another lender. By making your payments on time and keeping your credit usage low, you can raise your credit score and improve your chances of approval for other credit cards. END
 TITLE: Can I Increase My Credit Limit on a Secured Credit Card? CONTENT: Track Your Progress\n-------------------\nIf you're trying to build credit, it's important to know whether your score is rising and what appears on your credit report. Experian's free credit monitoring service allows you to get credit score and credit report updates, as well as alerts when there are changes to your accounts.\nThat way, you'll know if there is any fraudulent activity and can notify your lender right away. Undetected fraud can end up on your credit report and drag down your credit score, so it helps to get notifications of any suspicious activity. You can also request a free copy of your credit report from each of the credit bureaus through AnnualCreditReport.com.\nIf you're considering a secured credit card to establish or rebuild credit, Experian CreditMatch™ can help you find a card for your circumstances. END
 TITLE: Why Credit Card Companies Close Accounts Without Telling You CONTENT: Why Credit Card Issuers Close Accounts Without Notice\n-----------------------------------------------------\nHere are some of the more common reasons why a credit card company may close your account without telling you:\n*   **You've stopped using your card.** Credit card issuers often close accounts that haven't been used in a while. Unfortunately, there's no hard-and-fast rule for how often you need to use your card to avoid having it closed, and that timeframe can vary from issuer to issuer. Using an account to pay a small recurring bill, and paying it off immediately, can help prevent this from happening.\n*   **Your account is in default.** If you've stopped making payments on your credit card, closing it may be the card issuer's way of keeping you from making any more purchases. This can also occur if you simply have too many late payments on your account, even if you catch up in time to avoid default.\n*   **You've consistently exceeded your credit limit.** If you're constantly going over your credit limit, the card issuer may view it as a risk that you're unable to manage your debts well. It's unlikely to be a problem if you do it once or twice, but regularly stretching your credit accounts beyond the limit could result in an account closure.\n*   **Your credit score dropped significantly.** Credit card issuers run routine credit checks on existing account holders to make sure they're still managing all of their debts well. If you've missed payments on other accounts, your credit score may have dropped below the cardholder's minimum credit score requirement.\n*   **You've breached the terms of the card agreement.** Each credit card comes with an agreement, and if you do anything that breaches that agreement, your account may be shut down. This typically occurs among credit card rewards enthusiasts who use questionable practices to maximize their rewards.\n*   **The card has been discontinued.** Credit card companies periodically discontinue certain cards. Depending on the situation, you may be able to continue using your card even if it's closed to new applications, or you may be offered a different card as a replacement. In some cases, though, the card issuer may simply close the account.\nCredit card companies may notify account holders before closing their accounts. They aren't required to, however, which means closure could come as a complete surprise to the cardholder. Thankfully, there are steps you can take to avoid closure in the first place. END
 TITLE: Why Credit Card Companies Close Accounts Without Telling You CONTENT: How a Closed Credit Card Account Impacts Your Credit\n----------------------------------------------------\nEven if you rarely used it, an account being closed has the potential to have some major impacts on your credit.\n### Credit Utilization\nOne of the most important ways an account closure can affect your credit is if it causes your credit utilization rate to spike. Your credit utilization indicates how much of your available credit you're using at any given time, and a lower utilization is better for your credit score.\nIf a card is canceled, you lose access to that available credit, and your credit utilization rate will increase if you have balances on other credit cards.\nFor example, let's say you have a $0 balance on a card with a $10,000 limit and a $2,500 balance on a card with a $5,000 limit. Your overall credit utilization rate between the two cards is roughly 17%. But if the card with the $10,000 limit is closed, your overall utilization rate jumps to 50%.\nKeeping your utilization in the single digits can help you achieve an excellent credit score.\n### Positive Payment History\nIf you've had a credit card account in good standing on your credit report for several years, the account's positive history can help improve your score. If that account gets closed while it was in good standing, it'll stay on your credit reports for up to 10 years, but it won't carry as much weight as an open account would.\nFurthermore, closure of the account means no additional on-time payments will be added to the account, which can hamper your progress improving your credit score—especially if it's one of only a few accounts you have in your name.\nIf there were negative items on the account, such as late payments, those will remain on your report for seven years.\n### Length of Credit History\nThe longevity of your accounts also factors into your credit score. Credit scoring models look at the age of your newest account, as well as the average age of your accounts. If all of your other accounts on your credit report are newer, the dropping off of a much older one can ding your score. If you have to open a new account to replace the closed account, this can have an added effect.\n### Credit Mix\nIf you only have one credit card, losing it could impact your credit mix. This score factor considers how many different types of credit you have—installment loans and credit cards, for instance. If you have multiple credit cards, though, having one closed may not have much of an impact on this credit score factor. END
 TITLE: Why Credit Card Companies Close Accounts Without Telling You CONTENT: How to Keep Your Credit Card Account Open\n-----------------------------------------\nIf you want to avoid a situation where your credit card gets closed without notice, here are some actions you can take:\n*   Call the card issuer and ask when they typically close accounts due to activity.\n*   Put a small recurring charge on your card to avoid letting it go unused.\n*   Set up automatic payments to ensure timely payments every month.\n*   Read and follow the card agreement to avoid any breaches. If you don't have your agreement handy, call your card issuer and ask for a copy.\n*   Manage all of your other credit accounts well.\n*   Avoid using your card if you're consistently bumping up against its credit limit. END
 TITLE: Why Credit Card Companies Close Accounts Without Telling You CONTENT: Use Credit Cards Responsibly to Benefit Your Credit\n---------------------------------------------------\nBy continuing to use your card responsibly and paying it off every month, you can help improve your credit. Since on-time payments, the longevity of accounts, credit utilization and credit mix factor into your score, keeping your credit card in good standing is beneficial, even if you only use it for small, occasional purchases to keep it active.\nYou can also monitor your credit for free to see where you stand and to make sure your credit card accounts remain open. END
 TITLE: What Credit Score Do I Need for a Car Lease? CONTENT: Why a Good Credit Score Is Often Needed for a Lease\n---------------------------------------------------\nWhen a financing company considers a lease application, they look for indicators that you're a reliable borrower. Your credit score is one of the first things they check. The better your credit, the less risk you pose, since a high score reflects timely payments, low credit utilization and other factors that indicate high creditworthiness.\nYour credit will not only affect whether you are approved for the lease, but also what interest rate you'll pay. If your credit score qualifies you for a lower interest rate, your monthly payments will be less.\nMonthly lease payments on a car are determined by its expected depreciation and your interest rate. To calculate depreciation (also known as amortization), lenders subtract the vehicle's predicted residual value from its purchase price. The residual value is what they expect the car to be worth at the end of your lease term. Your lease principal is the difference between the purchase price and the residual value.\nSo, if you lease a car with a purchase price of $25,000 for three years and the residual price is $18,000, your lease principal will be $7,000 paid over the course of 36 months. Your interest rate will be added to the principal and, just as with a car loan (or any other type of financing), borrowers with higher credit scores will receive lower interest rates, and vice versa.\nAlthough lease payments are typically lower than auto loan payments—in some cases by $100 or more, according to Experian data—the share of new vehicles that are leased has dropped in 2020. More than 32% of all new vehicles were leased as of Q2 2019, but that fell to 28% in Q2 2020.\nAmong leases specifically, the share of nonprime borrowers (601-660 credit score) saw a decline of 8% from 2019 to 2020, but leases by prime borrowers grew nearly 8%. Lease payment amounts have also increased slightly across all borrowing groups except subprime borrowers (501-600 credit score). END
 TITLE: What Credit Score Do I Need for a Car Lease? CONTENT: Can I Lease a Car With a Bad Credit Score?\n------------------------------------------\nThe short answer is yes, you can lease a car with a bad credit score—though it may be more challenging. A lender may use your credit score to decide which types of vehicles they'll lease to you, so if you have your heart set on a particular car, your credit score could affect whether you'll be approved for it.\nA bad credit score may also result in a higher interest rate on the lease, meaning you'll pay more per month and over the lease term. Lenders may also request a higher security deposit from bad credit borrowers to cover their increased risk.\nYou may be able to lower your monthly payments, even if you don't have great credit, by making a \"capitalization reduction\" payment. Similar to a down payment, the capitalization reduction amount is subtracted from the purchase price that's used to calculate your lease principal.\nFor example, if you put down $3,000 on a car with a purchase price of $25,000, then your lease will be calculated with a $22,000 purchase price. That means you'll have a lower principal and less interest will accrue.\nIn the event you're unable to qualify for a lease, you might consider a lease transfer. Assuming you know someone who wants to get out of their current car lease, they may be able to transfer it to you so you can take over the payments. Their lender will still run your credit, but they may be more lenient than if you were applying for a new lease on your own. END
 TITLE: What Credit Score Do I Need for a Car Lease? CONTENT: Can I Build Credit With a Car Lease?\n------------------------------------\nLenders typically report lease payments to the three credit bureaus (Experian, TransUnion and Equifax) the same way they would loan installments, so a lease can help you build credit. If you make all of your lease payments on time, your credit report will reflect that positive credit behavior. Because payment history is the most important factor in your credit score calculation, on-time payments will go a long way to help your credit score.\nOn the other hand, if you submit a payment more than 30 days late, that will also appear on your credit history and will lower your score. As with any type of financing, it's a good idea to examine your budget and make sure you can afford your lease payments before you sign the agreement. END
 TITLE: What Credit Score Do I Need for a Car Lease? CONTENT: When Does Leasing a Car Make Sense?\n-----------------------------------\nLeasing can be an attractive short-term option for a car if you don't want to commit to a car loan. But when the lease ends, you must return the car, whereas paying off a loan enables you to own the vehicle outright.\nLet's look at some of the pros and cons:\n### Pros\n*   Ability to drive a newer car\n*   Smaller down payment than with a car loan\n*   Lower monthly payments\n*   Less likely to need costly repairs since the car will probably be under warranty\n*   Short-term commitment (usually 24 to 36 months), after which you can lease or buy a different car\n### Cons\n*   No equity or ownership in the vehicle\n*   Mileage limitations (you're typically restricted to a certain number of miles per year)\n*   Lease fees\n*   Possible gap insurance requirement in case the car is totaled before the lease is up\nBuying and leasing both can make sense under different circumstances. If your priority is driving a new car and you like the option of switching to a new vehicle every few years, a lease may be right for you. The lower monthly payments may also be easier on your budget, although you still have to account for maintenance and repairs that come up during the lease term.\nBut taking out a car loan to buy a car puts you on the path to full ownership, so once it's paid off, the vehicle is yours to do with as you please. You can drive it for years with no additional payments or sell it for cash. An auto loan also doesn't restrict your annual mileage, so if you commute a long distance or take long road trips, buying could be a better choice. END
 TITLE: What Credit Score Do I Need for a Car Lease? CONTENT: What to Know Before Leasing a Car\n---------------------------------\nYou may be able to get a better lease deal by negotiating. Not all fees are up for discussion, of course, including the residual value and acquisition fee.\nHowever, the following steps may help you save money:\n1.  Research the vehicle you want to lease. Knowing the market value of the car can help you gauge whether an offer is fair.\n2.  Compare prices at different dealerships. Search online for dealerships in your area and see whether any are offering promotional specials, rebates or other deals on particular vehicles. You might even consider looking at dealers in neighboring towns or counties to see if you can save by going a little bit out of the way.\n3.  Be flexible on vehicle type. Some vehicles are significantly more costly to lease than others. For example, Experian found that the average monthly lease payment for a Honda Civic is $291, while a Ford Explorer is $491. Because of the cost variations, it can be useful to consider a range of vehicle types to get the best deal.\n4.  Negotiate fees. If you know what other dealerships are charging to lease similar models as the car you're looking at, try asking the sales associate to match those other rates or at least bring the price into the same ballpark. You can also ask whether they'll increase your annual mileage limit or reduce the buyout rate if you plan to purchase the car when the lease ends.\nYou may be able to save by negotiating post-lease expenses as well. If you plan to buy the car or want to lease another vehicle through the same dealer, they may be willing to waive your disposition fee, which is used to cover cleaning and repair costs after you return the vehicle so they can put it back on the market.\nStill, one of the best ways to lower the cost of leasing a car is to improve your credit score. You can check your credit score and report for free through Experian to see where you might need help. If you're not in a rush to get into a new car, it could be well worth it to take measures to raise your score. One way to give your score an instant lift is with Experian Boost™† , which lets you add on-time utility, telecom and other payments to your credit file for free. END
 TITLE: How Bad Is It to Default on a Car Loan? CONTENT: What Happens When You Default on a Car Loan?\n--------------------------------------------\nAs soon as you miss your car payment due date, your lender could consider your account delinquent. The lender will usually charge you a late fee and will try to collect on the missing payment. You might have a short grace period, such as 10 or 15 days, during which time you can bring your account current without facing a late fee or other consequences. After 30 days, your lender will report the delinquent payment to the major consumer credit bureaus (Experian, TransUnion and Equifax), which add them to your credit reports.\nThe next step after delinquency is default. Each lender has their own timeline for declaring your loan in default; some may do it the first time you miss a payment, while others wait 90 days or longer. When you default, the lender ramps up their collection efforts, turning your account over to their in-house collection team or to a third-party collection agency that tries to recoup the money. END
 TITLE: How Bad Is It to Default on a Car Loan? CONTENT: Consequences of Defaulting on a Car Loan\n----------------------------------------\nDefaulting on a car loan can have serious consequences for your finances that can last for years. Ultimately, defaulting can make it harder to get approved for credit, such as mortgage loans or credit cards.\n**A late payment can negatively affect your credit score.** Because payment history is the biggest factor in credit scoring, accounting for 35% of your FICO® Score☉ (the most commonly used credit score among lenders), a single missed car payment can have a serious negative effect on your credit score. A delinquency on your loan payments will stay on your credit report for seven years.\n**Your car could be repossessed.** When you get an auto loan, the car serves as collateral for the loan, meaning the lender can take the car if you're delinquent. Depending on your state's laws and the terms of your loan agreement, a lender may be able to repossess your car as soon as you miss one loan payment, and they may not have to give you any warning. More commonly, though, lenders will contact you seeking the missed payments before they take the drastic step of repossessing the car.\nAfter repossessing a car, the lender typically sells it at auction to recoup the money you owe on the loan. If the sale doesn't net enough money to pay off your loan, however, the lender may turn to you for the rest of the money or even sue you to get it.\nAs for your credit score, having your car repossessed will further compound the negative impact of the delinquency and collection account on your credit history. A repossession is considered a serious derogatory mark on your credit report and will stay there for seven years.\n**Any remaining debt could be sent to collections.** Even after your car is repossessed, you could still face calls, emails and letters from collections agencies. Lenders sell repossessed cars at auction, and if it doesn't recoup the remaining balance of the loan financing it, you'll owe what's called a \"deficiency balance.\" Ultimately, the lender could sue you for the money you owe. Your wages could be garnished; a lien could be put on your home. Even if you pay off the debt, an account in collections remains on your credit report for seven years from the date of delinquency. END
 TITLE: How Bad Is It to Default on a Car Loan? CONTENT: If you're concerned you may not be able to make your auto loan payments, don't hide your head in the sand. Taking action can help protect your credit score. Here are some things to try. END
 TITLE: How Bad Is It to Default on a Car Loan? CONTENT: Avoid Defaulting on a Car Loan\n------------------------------\nWhen you're in financial trouble, defaulting on a car loan might seem like an easy way out. In reality, the negative effects on your credit score can linger for years, making it harder to achieve long-term financial goals such as buying a home.\nTalking to your lender is the first step to avoid defaulting on your auto loan. Checking your credit score and report will help you determine if you qualify for options such as refinancing or debt consolidation loans, which often require good credit. You can get a free copy of your credit reports through AnnualCreditReport.com. You can also check your credit report and score for free through Experian. If you're struggling with debt or with your finances in general, a reputable credit counseling service can help you create a plan for getting out of debt and managing your money. END
 TITLE: Can’t Afford Your Car Payment? Here’s What to Do CONTENT: Contact Your Lender\n-------------------\nYour first stop: your auto lender. Call and explain that you're at risk of falling behind on your loan. Since vehicle repossession is usually the most time- and resource-intensive route when payments are missed, many lenders are willing to work with borrowers to get their payments under control. And the sooner you get in touch, the more options your lender may be able to offer.\nHere are two things you can try right away.\n*   **Request a change in due date.** Just got a new job, and can't make your next payment because your payday changed? Ask your lender to adjust the due date of your next payment. Even if payday is only delayed by a week, it's worth calling and asking to avoid the late fees.\n*   **Alter your payment schedule.** To keep you from defaulting, your lender may be willing to create a payment plan that suits your needs. For example, it could extend your loan term so your monthly payments are lower, break your payments into smaller biweekly chunks or let you pay off missed payments over time.\nHeads-up that these options might come with fees, and could cause you to accrue more interest than you otherwise would. Ask your lender about these potential ramifications, and get updates in writing to avoid future confusion.\nIn fact, whenever you contact your lender, the Consumer Financial Protection Bureau recommends jotting down the name of the representative, as well as their ID number and any case numbers affiliated with your request. END
 TITLE: Can’t Afford Your Car Payment? Here’s What to Do CONTENT: Request a Deferral\n------------------\nIf you're experiencing financial hardship and a minor adjustment isn't going to suffice, you can also ask your lender about deferring your car payment. If approved, this will allow you to skip a small number of payments without penalties or fees.\nEvery auto lender has different rules and requirements when it comes to deferring payments. Some allow you to defer your entire payment; others require you to keep paying interest. Some limit the number of times you can request a deferral; others forbid deferrals entirely if you're already behind on your bills.\nEach lender also has different application requirements. If deferrals are built into your loan agreement, you might see the option to skip a payment from within your online account. In other cases, you might have to submit a hardship letter that explains why you need the deferral, along with financial details like your income and credit scores.\nIf your deferral request is approved, it could give you some much-needed breathing room for the next month or three—allowing you time to, say, find a job and start receiving paychecks.\nBut that doesn't mean you're off the hook forever: Your lender will simply tack those deferred payments onto the end of your loan. That's why some lenders call this process a \"loan extension.\"\nThough that means you'll end up paying interest on your loan for longer (an additional three months if you defer three payments), it's much better than losing your car to repossession. END
 TITLE: Can’t Afford Your Car Payment? Here’s What to Do CONTENT: Refinance Your Car Loan\n-----------------------\nDo you have strong credit scores? And do you owe less on the car than it's worth? Then you might want to look into refinancing your car loan.\nThis essentially involves replacing your current loan with a new one, usually from a different lender. Once you've signed the paperwork, your new lender will pay off your existing loan and take over the car's title until you've finished paying it off.\nBy refinancing, you may be able to reduce your interest rate or monthly payment. If you're struggling to pay your bills, you should prioritize the latter—and look for refinancing that allows you to extend your loan's term.\nIf you have 24 months left on your auto loan, for example, you could refinance with a 36-month loan. While that will likely increase the amount of interest you'll pay in the long run, it will also reduce your monthly payments today. And, though refinancing could cause a small dip in your credit scores, it's far superior to the damage that would be caused by missing a payment or defaulting on the loan.\nRefinancing may be difficult if you have low credit scores, or if you owe more on the car than it's worth. Some lenders may also charge a penalty for paying off your loan early. Still, refinancing might be worth a shot if the alternative is getting your car repossessed.\nJust make sure you apply for auto loan refinancing with a reputable company: The Federal Trade Commission reports that some fraudsters have been conducting scams wherein they promise to reduce your monthly bill if you pay an upfront fee. END
 TITLE: Can’t Afford Your Car Payment? Here’s What to Do CONTENT: Trade In or Sell Your Vehicle\n-----------------------------\nIf you're struggling to make your car payment, ask yourself if this is a one-time occurrence—the result of an unexpected medical bill, for example—or if this is something that could happen again.\nIf it's the latter, your safest bet might be to get rid of the vehicle. You could either trade it in for something more affordable, or sell it and buy a used vehicle so you can avoid having a car payment altogether. (Older cars often qualify for cheaper insurance too.)\nBefore going this route, however, you'll need to ask yourself two questions: How much is your car worth? And how much do you still owe on it?\nIf your car is worth more than you owe, you have \"equity\"—and could sell it to get yourself out of debt. Since private buyers generally pay the most, you could give yourself time to find one by asking your lender for a deferral, as outlined above.\nOr, if you're in a rush and looking for an easy way out, consider working with a dealership or a site like Carvana or Carmax. When you don't have the title in hand, this is often the most painless route.\nWhen you have equity, selling your car is one of the best solutions because 1) you could walk away with a few thousand dollars that allows you to purchase another, more affordable vehicle, and 2) you'll pay off the loan on time, meaning you won't incur any damage to your credit scores.\nUnfortunately, if you're \"upside down\" on your loan, meaning you owe more than the car is worth, this option won't work as well. One potential strategy: selling the car for the highest price you can get, then taking out a personal loan to pay off the remaining principal. While you'll still need to pay back the personal loan, the payments will likely be more manageable than what they were with your auto loan. END
 TITLE: Can’t Afford Your Car Payment? Here’s What to Do CONTENT: Voluntarily Surrender It\n------------------------\nOn the verge of having your car repossessed? As a last-ditch option, you can consider giving it back to your lender.\nWhile voluntary surrender will still have a serious negative impact on your credit scores, it'll probably be less embarrassing and expensive than an involuntary repossession. Since you are taking initiative and responsibility for your debt, future lenders may also view a voluntary surrender slightly more favorably than an involuntary one.\nThat said, a voluntary surrender will remain a black mark on your credit reports for seven years—and, as with an involuntary repossession, you'll still be responsible for paying the deficiency balance: what you owed, minus what the lender received for your car at auction, plus any additional fees. If you can't pay this balance, your debt will likely go to collections. END
 TITLE: Can’t Afford Your Car Payment? Here’s What to Do CONTENT: Instant Action to Take Now if You Can't Afford Your Car Payment\n---------------------------------------------------------------\nAll the strategies above have merit depending on your circumstances. But take these three steps first, as soon as you know you're not going to make your payment:\n*   **Call your lender.** Don't wait. As soon as you realize you're in danger of missing a payment, get your lender on the phone. Ask what type of relief programs, loan extensions or payment plans it can offer, getting any promises in writing before hanging up.\n*   **Run the numbers.** To understand your options, including refinancing your loan or selling your car, you'll need to get a handle on certain numbers. Ask your auto lender how much you owe on the car, visit kbb.com to learn how much the car is worth and check your credit scores using our free tool.\n*   **Consider the whole financial picture.** Even if you're able to get a deferral or refinanced loan, you should ask yourself the hard questions. Is this car truly within your budget? Or is this stressful situation happening more often than you'd like to admit? Depending on your answers, selling your car may be the smartest option.\nWhatever you do, don't ignore that pile of bills. Missing a car payment—just one!—could result in fees, damage to your credit scores and even repossession. So start taking action today; the earlier you do, the better off you'll be.\n**_Note_**_: If you're struggling because of COVID-19, see if you're eligible for any relief programs. Even if you can't get pandemic assistance for your auto loan, you may be able to get help with other bills, freeing up money to make your car payment on time._ END
 TITLE: The 10 Most Popular Vehicles to Lease in 2020 CONTENT: Top 10 Most-Leased Models\n-------------------------\nWith dozens of car brands on the market, it can be difficult to find the right fit for you. To help you get started, here are the top 10 most leased vehicle models in the U.S. by market share.\nModel\nMarket Share\nHonda Civic\n4.5%\nHonda CR-V\n2.8%\nToyota RAV4\n2.7%\nRam 1500\n2.3%\nHonda Accord\n2.3%\nChevrolet Equinox\n2.2%\nFord F-150\n2.2%\nJeep Grand Cherokee\n2.1%\nFord Explorer\n1.9%\nToyota Tacoma\n1.8%\nSource: Experian State of the Automotive Finance Market, second quarter (Q2) 2020 END
 TITLE: The 10 Most Popular Vehicles to Lease in 2020 CONTENT: Most-Leased Brands\n------------------\nIf you're starting your search by focusing on a brand instead of a specific model, here are the top 10 leased brands based on market share.\nBrand\nMarket Share\nHonda\n13.6%\nToyota\n9.7%\nChevrolet\n8.0%\nFord\n7.8%\nNissan\n5.8%\nJeep\n5.8%\nMercedes-Benz\n4.8%\nBMW\n4.6%\nHyundai\n4.2%\nKia\n4.1%\nSource: Experian State of the Automotive Finance Market, Q2 2020 END
 TITLE: The 10 Most Popular Vehicles to Lease in 2020 CONTENT: Average Credit Score for New Lease\n----------------------------------\nGetting approved for a lease can be challenging if you have a low credit score. The average score on new leases in Q2 2020 was 729. Here's how that average has changed over time.\nAverage Credit Score\nYear\n729\nQ2 2020\n724\nQ2 2019\n722\nQ2 2018\n722\nQ2 2017\n716\nQ2 2016\nSource: Experian State of the Automotive Finance Market, Q2 2020\nThat doesn't mean you can't lease a car with bad credit. But it can be difficult, especially if you don't have anything else to sweeten the deal, so to speak, for the leasing company.\nFor example, you can put a down payment or get a creditworthy cosigner to lease the vehicle with you. Keep in mind, though, that if you do get approved, your costs may be higher than if you were to wait until you've improved your credit score. END
 TITLE: The 10 Most Popular Vehicles to Lease in 2020 CONTENT: Should You Lease Your Next Car?\n-------------------------------\nLeasing a car can be a good option for some people, but it's important to weigh the benefits and the drawbacks before you sign on the dotted line.\nA lease can be especially beneficial if you enjoy the new-car experience, but don't want the high monthly payment that comes with buying a brand-new model. Also, leases typically require lower down payments, so you don't have to part with as much cash upfront.\nFinally, a lease may be less of a hassle for some people. Instead of going through the process of selling a vehicle you no longer want, you simply return it once your lease expires. And if you want to extend your lease or even buy the car at that point, you have that option.\nThe primary drawbacks of leasing are the lack of ownership and the restrictions on how you can use the vehicle. You'll typically be limited on how many miles you can drive each year, and you can't make any modifications to the car. Any damage, scuffs or maintenance needs that exceed normal wear and tear can cost you when it's time to return the car. Also, leasing comes with several fees of its own, and if you decide you no longer want to lease, breaking your agreement could also be costly.\nIf you are planning to lease, learn how to negotiate the agreement to reduce your costs and compare offers from multiple dealerships. Some things you may be able to negotiate include:\n*   The value of the vehicle\n*   Mileage allowance\n*   How much it would cost to buy the vehicle at the end of the lease\n*   Interest rate (called the \"money factor\" on a lease)\n*   Trade-in value of your current vehicle\n*   The dealership's cost to return the vehicle to market when you return it (disposition fee)\nDo some research on each of these, including what other people are driving in your area, to make the best case for what you want. END
 TITLE: The 10 Most Popular Vehicles to Lease in 2020 CONTENT: Maintain Good Credit for the Leasing Lifestyle\n----------------------------------------------\nIf leasing is the best option for you, it's crucial that you maintain a good credit history. Whether you plan to lease again or would rather finance your next vehicle, a score drop between now and then may be challenging to get approved for your next agreement.\nYou can stay on top of your credit score with Experian's credit monitoring service. The platform provides free access to your FICO® Score☉ powered by Experian data, as well as an Experian credit report, which is updated every 30 days. You'll also get real-time alerts when something changes, such as a credit inquiry, new credit account, personal information or suspicious activity.\nAs you stay on top of your credit report and scores and take steps to address potential problems as they arise, you'll be in a better position to continue your leasing lifestyle. END
 TITLE: Is Leasing a Car a Good Idea? CONTENT: How Does Leasing a Car Work?\n----------------------------\nThe question of whether to lease or buy a car is somewhat similar to renting vs. buying a home. Renting or leasing might be easier to swing financially on a monthly basis, but will require some concessions you wouldn't make otherwise.\nIf you buy a car, you're free to use it as you please. You'll also be on the hook to pay for any servicing or repairs that aren't under warranty. If a car is financed, you'll own it outright once your loan is paid off. When you no longer want it, it's yours to sell or trade in.\nWhen you lease a car, you don't own it—you pay a fee to drive it for a set term, typically two to four years. You sign a lease agreement with the lessor, typically through a car dealership, and you may have to pay an upfront fee. However, this fee is typically much less than the down payment you'd pay to finance a car or what it would cost to buy a car outright.\nDuring your lease, you'll make monthly payments for a set period of time and must adhere to certain rules included in your lease agreement. You might, for example, be limited in the number of miles you can drive the car annually, and face a fee if you go over that limit. The lease agreement will also specify what's under warranty and who is in charge of maintenance and servicing for expenses not covered by the warranty. In some leases, the lessee is responsible for these expenses, while in others, the lessor pays for them. You should always make sure you know what you are and aren't responsible for financially.\nWhen your lease ends, you'll return the car and may have to pay additional fees to the dealership or lessor. You may be given the option to purchase your lease or lease another vehicle. If you return the car with damage beyond what's considered routine wear and tear, according to the Federal Trade Commission, you are financially responsible for these repairs. END
 TITLE: Is Leasing a Car a Good Idea? CONTENT: What Are the Benefits of Leasing a Car?\n---------------------------------------\nLeasing a car has potential benefits that may appeal to some drivers:\n*   **Lower monthly payments**: Monthly payments for a car lease are usually lower than monthly car loan payments, so leasing could mean spending less money each month to drive the same car. Experian's State of the Automotive Finance Market report published in the second quarter (Q2) of 2020 found that, on average, monthly lease payments for the ten most-leased car models is $102 cheaper than loan payments (with some being as much as $150 to $200 cheaper).\n*   **Smaller down payment**: Car leases often require an upfront fee, but they're typically less than what you'd pay for a car loan down payment. If cash is tight for you, leasing could help you afford a car sooner.\n*   **New-car experience**: If it's important to you to drive newer cars, a lease can make this more affordable than buying. Since leases usually only last two to four years, you can constantly upgrade to new cars with the latest safety and technology features. You can try out different cars more frequently, and since the vehicles are newer and you only have them for a few years, they may be less prone to mechanical issues.\n*   **Reduced hassle**: If you own a car and no longer want or need it, you have to sell it or trade it in, which can be quite a pain. When you lease, upon the end date, you simply return the vehicle.\n*   **Some covered costs**: With newer leased cars, the warranty may cover any issues you run into. And in some leases, the lessor will pay for servicing or car problems not covered by the warranty. This isn't always the case, but if your lease covers these costs, you can avoid paying for car issues (though you'll likely have to pay for routine maintenance such as oil changes and new tires). END
 TITLE: Is Leasing a Car a Good Idea? CONTENT: What Are the Drawbacks of Leasing a Car?\n----------------------------------------\nThe above perks might have you revving your engine to sign a lease, but there are some major downsides to keep in mind. Tap the brakes and consider the following:\n*   **Lack of ownership**: Since you don't own the vehicle, you have no equity in it. This means unlike owning, you can't sell it and make some money back or take advantage of its trade-in value. Plus, when you finance a car, you'll eventually pay off the loan and rid yourself of a monthly car payment. With leasing, you'll be stuck with a monthly payment as long as you have the vehicle, even as it depreciates in value.\n*   **Restriction of use**: Leases often restrict the number of miles you can drive, typically a maximum 12,000 to 15,000 miles per year. While you may be able to negotiate higher mileage limits, these restrictions can be difficult or altogether disqualify those who have a longer commute. You may also not be able to take the car with you if you move to a different state or country.\n*   **Additional costs to consider**: Leasing a car comes with plenty of expenses, from the upfront fee to the monthly payment, and sometimes, additional fees when the lease ends. You're in charge of paying for gas, possibly some repairs and car insurance, which can cost more for leased cars. You also typically owe a sizable fee if you terminate the lease early.\n*   **Constant car switching**: While the ability to change cars frequently can be a benefit to some, for other drivers it could be seen as a major hassle to have to go through the process of switching cars every couple of years. END
 TITLE: Is Leasing a Car a Good Idea? CONTENT: When Does It Make More Sense to Purchase a Car?\n-----------------------------------------------\nIt's ultimately a personal decision whether to buy or lease a vehicle. If you strongly value driving a new or luxurious car and frequently upgrading to the latest vehicles, leasing could make sense for you. But if you're content to have one reliable car that you stick with for the long run, purchasing a car could make more sense.\nIt also makes more sense to purchase a car if you want to build equity in your vehicle and have it as an asset. Leasing can cost less in the short run, with a lower down payment and smaller monthly payment, but you don't get the benefits of ownership.\nWhen you own your car, you can later sell it or trade it in to buy another car. If you play it right, you may make enough money selling a car that you don't have to finance the next one (or can at least reduce the size of a necessary loan). Leasing doesn't leave you with any equity in the car and can cost more money in the long run. END
 TITLE: Is Leasing a Car a Good Idea? CONTENT: What Credit Score Do You Need to Lease a Car?\n---------------------------------------------\nA FICO® Score☉ of 700 or above is typically required to lease a car, so if your credit isn't in great shape, you may find it hard to qualify for a car lease. According to Experian's State of the Automotive Finance Market report, the average credit score of those who lease a new car was 729 as of the second quarter of 2020. That's higher than the average credit score of 718 held by those who got new car loans the same quarter.\nOn the plus side, leasing a vehicle can help you build credit. Typically, lessors report your monthly payments to the credit bureaus like they would for an auto loan. This means if you're responsible with the lease, making your monthly payments on time every time, you can help improve your credit. END
 TITLE: Is Leasing a Car a Good Idea? CONTENT: Improve Your Credit Before You Lease\n------------------------------------\nIf you're interested in leasing a car but unsure if your credit score is strong enough to help you qualify, it may be smart to spend a little time working to improve your credit first. This could mean lowering outstanding debts and credit card balances, paying off charge-offs and past-due accounts, and continuing to pay all of your bills on time. You can also use Experian Boost™† , a free tool that can add your cellphone, utility and video streaming bills to your credit report, potentially giving your credit score an easy, instant lift. END
 TITLE: What Is the Best Time of Year to Lease a Car? CONTENT: Most Affordable Times to Lease a Car\n------------------------------------\nJust as with buying a car, you can often get better deals on leasing a car at certain times of the year. If you can, waiting until the time is right can help you save big.\n*   **When latest models come out**: Most carmakers release new models in the fall, but that's not always the case, so check manufacturer websites to see when the new model year of the car you want will come out. Dealerships are always eager to clear out last year's model to make room for new ones, so there may be special lease offers to be had. Just keep in mind you'll be limited to stock on hand.\n*   **The holidays**: Dealerships often hold sales on holiday weekends and over the winter holiday season. In general, if a three-day weekend is on the horizon, expect to see some lease specials. Keep your eyes out for deals on Memorial Day, President's Day, July Fourth weekend and Labor Day.\n*   **The end of the month, quarter or year**: Car dealerships typically earn bonuses for hitting monthly, quarterly and annual sales goals. Sales associates looking to meet their quotas may be more motivated to bargain when the bonus period is coming to an end. Late December, when the holidays and monthly, quarterly and year-end goals all coincide, can be an especially good time to score a deal.\nYou may also be able to find special lease offers for certain demographics. For example, in May and June you might see discounts for new college grads; around July Fourth, Memorial Day or Veterans Day, you might see deals for members or veterans of the military. Watch manufacturers' and dealers' websites for news about such offers. END
 TITLE: What Is the Best Time of Year to Lease a Car? CONTENT: Tips for Negotiating Your Car Lease\n-----------------------------------\nLease prices aren't set in stone. If you're willing to do some homework and negotiate, you may be able to lease the car you want for less.\nStart by checking your credit report, which you can do for free through AnnualCreditReport.com. You can also get your credit report and score for free directly through Experian. You'll need good credit, generally defined as a FICO® Score☉ of at least 670, to qualify for most leases. If your score isn't up to par and you don't need the car right away, focus on improving your credit score first.\nA few things you can do to improve your credit scores:\n*   Pay all your bills on time.\n*   Get current on any past-due accounts.\n*   Pay down your credit card balances to improve your credit utilization ratio.\n*   Avoid opening new credit accounts but keeping old credit card accounts open, since they can lengthen your credit history and reduce your credit utilization.\n*   Sign up for Experian Boost™† , a free service that adds your on-time payments of utility, cellphone and other bills to your credit report.\nNext, do some comparison shopping. Do your research to find a vehicle you like and can afford, then compare lease prices and offers at different dealerships. You can go online to check prices and email or call dealers for more information.\nOnce you've found an appealing lease offer, it's time to start negotiating. As you review the lease agreement, know what you can and can't negotiate. The residual value, which is the projected value of the car at the end of the lease, is generally non-negotiable. Same with the acquisition fee dealerships charge to set up the lease.\nHowever, you may be able to negotiate other fees, such as the disposition fee you're charged when returning the car. If you drive a lot, see if you can adjust the mileage allowance so you don't get dinged for excess mileage when you return the vehicle. Are you trading in a car? Getting it in tip-top shape before it's appraised can help maximize its trade-in value.\nThe gross capitalized cost, which is the current market value of the vehicle, is the basis for your lease cost. Check out what other dealers are charging to sell or lease the same model and trim. If you can find a better deal elsewhere, that might help you negotiate a lower capitalized cost and reduce your lease payments. The \"money factor,\" which is essentially the interest rate on the lease, may also be negotiable if you have a good credit score. END
 TITLE: What Is the Best Time of Year to Lease a Car? CONTENT: Is Leasing a Car a Good Idea?\n-----------------------------\nWhether you should buy or lease a car depends on many factors, including your budget, your financial goals and what you want from a vehicle. Here's a look at the pros and cons. END
 TITLE: What Is the Best Time of Year to Lease a Car? CONTENT: What Credit Score Do You Need to Lease a Car?\n---------------------------------------------\nIn most cases, you'll have an easier time leasing a car if you have a good credit score, which means a FICO® Score of 670 or higher. A good or excellent credit score generally qualifies you for a lower money factor, which can reduce your monthly lease payment.\nIf your FICO® Score is fair (between 580 and 669) or poor (579 and under), you'll find it more difficult to lease a car. If you do qualify for a lease, it will likely come with a costlier money factor. You might have more restrictions on your lease, higher fees and a more limited selection of vehicles to choose from. The leasing company will require you to buy auto insurance coverage to protect the vehicle, and poor credit can make auto insurance more expensive in most states.\nSome lease companies lease used cars, and these leases can be easier to qualify for with poor credit. However, driving a new car is a key benefit of leasing, so leasing a used car might defeat the purpose. If your credit is poor, it's often easier and more affordable to get a loan for a used car than it is to lease a new one.\nIf you do lease a car, managing your lease payments responsibly can help improve your credit. As with car loans, lease companies report your monthly payments to the major credit reporting agencies. If you make your monthly payments on time, you'll help to build a credit history and potentially lift your credit score. A late or missed payment will hurt your credit score, so be sure to stay on top of your lease payments. END
 TITLE: What Is the Best Time of Year to Lease a Car? CONTENT: Getting the Best Auto Lease Terms\n---------------------------------\nHaving a good credit score can help you get the best terms on your auto lease. Before you start shopping around for the best lease deals, check your credit report and score. If you discover your FICO® Score is under 670, and you don't need the car immediately, taking some time to improve your credit score before you apply for a car lease could save you money and make it easier to lease the car of your dreams. END
 TITLE: How to Get Your Credit Ready to Buy a Car CONTENT: 1\\. Check Your Credit Report and Scores\n---------------------------------------\nIt's possible to get a car loan even with a less-than-ideal credit score, but lenders may charge you a higher interest rate or require someone to cosign on the loan with you. Checking your credit report and credit score will show you where you stand.\nWhat's a good credit score? Lenders' standards vary, but many lenders prefer borrowers to have a score of at least 700 on the FICO® Score☉ range of 300 to 850. A good FICO® Score ranges from 670 to 739; a score from 740 to 799 is considered very good; and a score of 800 or more is considered exceptional. Auto lenders use a specialized credit scoring model that differs from the standard FICO® Score. However, general-use scores and auto lending-specific scores are influenced by similar factors, so if you have a good FICO 8 Score, it's likely you'll also have a good automotive-focused credit score.\nYou can check your credit score for free through Experian. When you do, take a look at the listed risk factors to see what might be holding your score back. Addressing risk factors, such as high credit utilization, can help you improve your scores.\nIn addition to checking your credit score, you should also check your credit reports with all three credit reporting agencies (Experian, TransUnion and Equifax). You can check your credit reports for free once a week through April 2021 at AnnualCreditReport.com. Review the reports to ensure all the information is accurate. If you find anything wrong, contact the appropriate credit bureau to dispute the error and see if it can be corrected.\nBut what if your credit score still isn't where you'd like it to be? Taking the following steps below can help you improve your credit score and enhance your chances of qualifying for an auto loan. END
 TITLE: How to Get Your Credit Ready to Buy a Car CONTENT: 2\\. Always Pay Your Bills on Time\n---------------------------------\nYour payment history is the most important factor in your credit score, accounting for 35% of your FICO® Score. If you need to improve your scores, start by bringing any late payments current. Once you're caught up on payments, make sure you always pay your bills on time going forward.\nWhen you have a lot of bills to keep track of, it can be easy to forget a due date. Consider setting up automatic payments or using reminders on your phone or calendar to help you stay on top of your payments.\nUtility, cellphone bills and other monthly payments don't normally don't get reported to credit bureaus, but you can get credit for paying these bills on time by signing up for Experian Boost™† . This free service reports your on-time bill payments—even Netflix®—to credit reporting bureaus, which can instantly improve credit scores based on your Experian credit report. END
 TITLE: How to Get Your Credit Ready to Buy a Car CONTENT: 3\\. Focus on Paying Down Credit Card Debt\n-----------------------------------------\nWhile you're getting ready to apply for a car loan, be careful not to take on any new debt. If you have existing credit card debt, reducing it can improve your credit score by lowering your credit utilization ratio. Your credit utilization ratio is a measure of how much of the available credit on your credit cards you're actually using; it's the second most important factor in your credit scores behind only payment history.\nTo calculate your credit utilization ratio, compare the total limits on your credit accounts to the balances. Lenders typically like to see a credit utilization ratio of 30% or less. For example, if your total available credit is $12,000, carrying a balance of $5,000 (41% of the available credit) could start to do damage to your scores. The balance-to-limit ratio on individual cards is important, too, even if high credit utilization on one card is offset by low utilization on the others.\nHigh credit utilization raises the level of risk you present in the eyes of lenders, which might make them more wary of taking you on as a borrower. Reducing your credit utilization will also lower your debt-to-income ratio (DTI), which compares your monthly gross income with your total recurring monthly debt. Lenders look at DTI to decide if you'd be able to afford monthly payments on a loan or credit card. END
 TITLE: How to Get Your Credit Ready to Buy a Car CONTENT: 4\\. Only Apply for Credit if You Really Need To\n-----------------------------------------------\nWhen you apply for credit, it can result in a hard inquiry, which can temporarily lower your credit score. The impact of a single hard inquiry on your credit score is usually minimal and typically lasts just a few months. However, if your credit report shows several hard inquiries within a short time, you may appear to be more of a credit risk.\nHow can you shop around for an auto loan without racking up too many hard inquiries? Credit scoring models know people applying for loans want to compare rates from a variety of lenders. If you submit multiple applications for the same type of loan within a certain window of time, credit scoring models typically treat these as one hard inquiry. The application window varies by the scoring company: VantageScore® uses a 14-day period, while FICO will group similar applications made in a 45-day period.\nYou can compare loan offers without generating any hard inquiries by getting preapproved for an auto loan. When a company checks your credit to preapprove you, it's generally considered a soft inquiry, so it won't show up on your credit report.\nKeep in mind that preapproval is only a conditional loan offer. You'll still need to get final approval from the lender. However, preapproval can provide a clear idea of how much car you can afford and how much the loan will cost you. It can also give you more negotiating power at the dealership. END
 TITLE: How to Get Your Credit Ready to Buy a Car CONTENT: 5\\. Dispute Inaccuracies on Your Credit Report\n----------------------------------------------\nIf you find something you believe to be inaccurate on your credit report, you can dispute it. Disputing an item on your credit report won't hurt your credit and could help it if a mistake that lowered your credit score is removed. For example, if a payment you made on time is reported by the lender as late, it can negatively impact your credit score.\nContact the credit reporting bureau that reported the error to file a dispute by phone, mail or online. The credit bureau will investigate with the creditor to verify the information. If the information can't be verified, it will be updated or deleted. If it's wrong, it will be corrected; if it's verified, it stays on your credit report.\nKeep in mind, however, that you can't have information removed from your credit report simply because it's negative. If your creditor verifies a disputed item is correct, it will remain on your credit reports and continue to be factored into credit scores. END
 TITLE: How to Get Your Credit Ready to Buy a Car CONTENT: 6\\. Save Up for a Down Payment\n------------------------------\nA down payment is money you put toward the purchase when you're financing a car. You'll typically need to make a down payment of at least 10% of the purchase price. If you're financing a car that costs $25,000, for example, you'd need to save up $2,500 for the down payment.\nA larger down payment reduces the amount you'll have to borrow, which helps you save money over the life of the loan in several ways. Even if you expect to qualify for excellent lending terms, there are some good reasons to save up for a down payment of at least 10% or better yet, 20%.\n*   **Lower interest rate**: A higher down payment reduces the amount you'll have to borrow, which reduces risk to the lender. They'll typically translate that into a lower interest rate on the loan, which decreases the total amount you'll pay for the car by driving down interest costs.\n*   **Lower monthly payments**: With a smaller loan amount and lower interest rate, your monthly payments will be less than they would have been otherwise. This means you'll have more room in your budget to put toward other goals, such as buying a house.\n*   **Less risk of going \"upside down\" on the loan**: Cars generally lose a portion of their value in the first year. By making a large down payment (in the neighborhood of 20%), you cut down the risk that you'll end up owing more than the car is worth, which can cause problems if the car is totaled in an accident or you want to sell it before it's paid off.\nSaving up for a down payment isn't technically a way to improve your credit score. However, if your credit isn't stellar, a larger down payment might persuade a hesitant lender to approve your loan application or offer you better terms on a loan. END
 TITLE: How to Get Your Credit Ready to Buy a Car CONTENT: Poor credit can be a major roadblock when you apply for an auto loan. A good credit score can make it easier to get a loan with lower interest rates and better terms. To smooth the road to your new car, ensure that your credit report and credit score are in good shape before you set out for the dealership. END
 TITLE: How to Buy a New Car Online CONTENT: Get Your Finances in Order\n--------------------------\nOne of the most important things you can do before you even start looking at vehicles is to determine how much you can afford. Take a look at your budget, including your current car payment if you have one, to understand how much you can pay each month without putting too much stress on your finances.\nAlso, check your credit score to see where you stand. Unless you're paying with cash, you'll need to finance the vehicle with a lender—and the higher your credit score is, the better your chances of getting favorable financing terms such as a lower interest rate. If your credit needs some work and you have time before you need a new vehicle, consider working to improve your credit first.\nFinally, you'll want to get preapproved for a loan before you communicate with a dealer. There are several lenders that provide direct financing to consumers, and many of them offer online prequalification.\nDealers often like to negotiate a longer term on your auto loan to get you to buy a more expensive vehicle and still meet your target monthly payment. But if you have a preapproval in hand, it can help you and the dealer stick to a specific sales price range. END
 TITLE: How to Buy a New Car Online CONTENT: Search Vehicle Models\n---------------------\nIf you visit a local dealer, you're restricted to the vehicle options they have on the lot. But if you're searching online, you can search new car inventories for all of the dealers in your area and beyond.\nIf you already know what make and model you want, it may just be a matter of finding the dealers in the area that have it in their inventory. If not, do some research based on how you want to use your new vehicle. Websites like Edmunds, Autotrader and Cars.com can provide information about model specifications, fuel efficiency, capacity, safety, price and more.\nThis process will help you narrow down your list of options to a few models or one in particular that you can look for near where you live. END
 TITLE: How to Buy a New Car Online CONTENT: Shop Around for Deals\n---------------------\nOnce you know the type or types of vehicles you want, search local dealer websites to see what's available in your area. In some cases, you may need to look beyond your immediate community, but for most models, there will be plenty nearby.\nNew car sales prices may not vary much, but some dealers may provide better incentives, such as rebates or promotional financing, so check to see if one is offering a better deal than others.\nIf you can find two dealers with the same model and comparable features, one may be charging less, which could give you some leverage with negotiations. END
 TITLE: How to Buy a New Car Online CONTENT: Reach Out to a Salesperson\n--------------------------\nNowadays, dealers typically have salespeople who focus on internet sales. You'll have the chance to get more information about the vehicle you're interested in. If you've done your research about the vehicle's value and other deals in the area, you may have some room to negotiate on the price.\nWhat's more, because you won't be doing the negotiations in person, you may feel less stressed because you'll have time to think between messages instead of needing to respond on the spot.\nDuring this process, you can also talk about your financing arrangement, discuss whether you plan to trade in a vehicle or put money down. END
 TITLE: How to Buy a New Car Online CONTENT: Test Drive the Car\n------------------\nYou can do the vast majority of the car-buying experience online, but you'll still want to take a car for a test drive before buying to make sure it's a good fit.\nDepending on the dealer, the salesperson may offer to bring the vehicle to your house to take it for a spin. If not, make an appointment with the salesperson to visit the dealership, so you don't have to wait around when you get there.\nPlan to drive around the neighborhood to get a good idea of how the car handles starts, stops and turns. If you can, take the car for a quick drive on a highway to see how it manages acceleration and high speeds. Check out the back seat to determine how roomy and comfortable it is (especially if you have a family and plan to pile into it regularly), and see if the trunk size meets your needs. END
 TITLE: How to Buy a New Car Online CONTENT: Ink the Deal\n------------\nOnce you've settled on a model and a price with the salesperson, it's time to finish the deal. In most cases, you'll need to complete the purchase process in person. If you're trading in a car, you'll also need to have the dealer do an in-person appraisal.\nBut again, setting an appointment can help reduce your time spent waiting.\nBefore you visit the dealer, contact your lender and notify a loan officer that you've found a car and get all the necessary information that you'll need to share with the dealer. If you're financing your car, you'll also need to show proof of insurance before driving off the lot.\nWhen you visit the dealership, review the paperwork and make sure all the information matches what you and the salesperson decided on, and make corrections where necessary. Don't be afraid to walk away if the dealer makes changes to the agreement or insists on signing before making corrections.\nAlso, if the dealer is trying to sell add-ons, such as maintenance and vehicle service contracts, gap insurance or credit life insurance, research each before you buy. In many cases, you can get these for less from third-party providers.\nOnce everything is in place, sign the contract and take your new vehicle home or, if available, request home delivery. END
 TITLE: How to Buy a New Car Online CONTENT: Focus on Credit Now for Future Car Purchases\n--------------------------------------------\nWhether or not you have good credit now, it's important to take steps to build and maintain a good credit history for the future.\nFor example, if you can't get approved for a low interest rate now, improving your credit score could make it possible to refinance your auto loan at a lower rate later on. You'll also have a better chance of scoring favorable terms the next time you buy a car or need financing for anything else in your life.\nExperian's credit monitoring tool can help you with this process by providing you with free access to your FICO® Score☉ and Experian credit report. With these, you'll be able to view which areas of your credit report that need attention and keep track of your progress.\nYou'll also get real-time updates when new information is added to your credit report, including new accounts, inquiries and more.\nThe process of building credit can take time, but the savings are worth it. END
 TITLE: Can I Get a Cash-Out Auto Refinance Loan With Bad Credit? CONTENT: A cash-out auto refinance loan is similar to a cash-out refinance mortgage loan. If your financed vehicle is worth more than you owe on the loan, you may be able to refinance it with a different lender and gain access to some of the progress you've made in paying off the vehicle.\nFor example, if you have a $3,000 loan balance on a vehicle worth $5,000, you could potentially refinance your auto loan for up to $5,000. The first $3,000 will pay off your existing loan, and the rest can be disbursed to you in cash.\nThe amount of money you actually receive will be based on the amount of equity you have in your vehicle, the lender and your credit situation.\nFor example, some lenders may allow you to finance up to 100% of your vehicle's value, while others may have lower limits.\nNot all auto lenders offer cash-out auto refinance loans, so you'll need to take the time to search for at least a few options that you can compare. END
 TITLE: Can I Get a Cash-Out Auto Refinance Loan With Bad Credit? CONTENT: Do You Need a Good Credit Score for a Cash-Out Auto Refinance?\n--------------------------------------------------------------\nAs with any type of loan, your credit score is an important factor to lenders. If you have bad credit, you'll generally have a harder time getting approved for credit, and may have to pay higher interest if you are. Cash-out auto refinance loans are no exception.\nAuto loans almost always use the vehicle being financed as collateral. This means, in the event you stop making payments, lenders can repossess and sell the vehicle to recoup the outstanding balance on a loan. But cars tend to depreciate quickly, so this poses a challenge to lenders if a borrower owes close to or as much as the car is worth. If a car depreciates faster than you can pay down the balance, you may end up owing more than the vehicle is worth—a scenario lenders prefer to avoid.\nStatistically, people with bad credit are more likely to miss payments or default on their loans than people with good credit, so lenders may deny your cash-out auto refinance application if your credit score is below a certain threshold. END
 TITLE: Can I Get a Cash-Out Auto Refinance Loan With Bad Credit? CONTENT: What Are the Risks of a Cash-Out Auto Refinance?\n------------------------------------------------\nEven if you can qualify for a cash-out auto refinance loan, you may not want to go through with one. Be sure to understand both the benefits and the drawbacks of this option before you make a decision. Here are some potential risks that could make your situation worse:\n*   **It may increase your monthly payments.** Depending on how much you take out in cash and your new repayment term, a cash-out auto refinance could make your new loan more expensive. If you have the budget for it, that may not be a problem. But if you're already just barely scraping by, it could make it even more difficult to keep up with payments.\n*   **You may end up with negative equity.** If you borrow 100% of your car's value, or close to it, the vehicle may end up being worth less than what you owe if it depreciates faster than you can pay down the debt. In this situation, you'd end up with negative equity, which is when you owe more than your vehicle is worth. If you choose to sell the car or it gets totaled, you may end up having to pay the difference to the lender in cash.\n*   **You could lose your car.** If your new monthly payments are so unmanageable that you miss payments and ultimately default on the loan, the lender will typically repossess the vehicle and sell it at auction.\n*   **You likely have better borrowing options.** There are many alternatives to a cash-out auto refinance that pose less risk and could cost you less in interest. Before you decide on a cash-out auto refinance, be sure to explore other options such as personal loans and 0% APR credit cards. These may be challenging to qualify for if your credit score is low, but are worth a look. Another option: borrowing from a friend or family member. END
 TITLE: Can I Get a Cash-Out Auto Refinance Loan With Bad Credit? CONTENT: How to Improve Your Credit Before Applying for an Auto Refinance\n----------------------------------------------------------------\nIf you're thinking of applying for a cash-out auto refinance with bad credit, you may want to reconsider. If you don't absolutely need the cash right now, think about working to improve your credit to make it easier to get approved and also save money on interest.\nHere are some ways you can improve your credit score before you apply to refinance an auto loan with cash back:\n*   **Focus on payments.** The most important factor in your FICO® Score☉ is your payment history, so make it a goal to pay all your bills on time. If you have any accounts with past-due payments, get caught up quickly to avoid further damage to your credit score.\n*   **Pay down credit card debt.** Another influential component of your credit score is your credit utilization ratio, which measures the amount of credit you're using against your total credit limit. The lower your card balances are relative to their credit limits, the better it is for your credit score.\n*   **Get added as an authorized user.** If you have a loved one who has a credit card they've never missed a payment on, ask if they'll add you as an authorized user. If they do, the account history will appear on your credit reports, which can help improve your credit score.\n*   **Avoid new debt unless necessary.** Anytime you apply for credit, the lender is likely to run a hard inquiry, which can temporarily drop your credit score by a few points. Also, when you open a new credit account, it lowers the average age of your accounts, which impacts your length of credit history (another factor in your credit scores).\nAs you take these and other steps to improve your credit score, you'll have a better chance of getting approved for a cash-out auto refinance loan, as well as other loans. END
 TITLE: Can I Get a Cash-Out Auto Refinance Loan With Bad Credit? CONTENT: Monitor Your Credit Regularly to Maintain a Good Credit Score\n-------------------------------------------------------------\nWhile it's important to work on your credit to improve your chances of getting favorable financing options, it's crucial that you continue to practice good credit habits to maintain that improved score.\nYou can do this by monitoring your credit with Experian. The platform offers free access to your FICO® Score and your Experian credit report, which is updated every 30 days. You'll also get real-time updates when there are changes to your Experian credit report, such as new accounts, inquiries and changes to your personal information.\nAs you build your credit score and continue to monitor it, you'll have a better idea of what's impacting your credit score, so you can address potential problems quickly. END
 TITLE: What Is a Cash-Out Auto Refinance? CONTENT: How Does a Cash-Out Auto Refinance Work?\n----------------------------------------\nIf your vehicle is worth more than the remaining balance on your loan, you may be able to do a cash-out auto refinance.\nLike a regular auto refinance, your new loan will cover the remaining balance on your original loan and possibly nab you a lower interest rate or a modified loan term. Where a cash-out auto refinance differs, however, is that your new loan will be larger than your original loan. The difference between the loan amounts will be deposited into your bank account to be used to make purchases, pay bills or consolidate debt, for instance.\nA cash-out auto refinance is similar to a cash-out refinance mortgage loan, which gives you the ability to replace your current mortgage loan and take some of the equity you have in your home in cash.\nFor example, let's say your car is worth $10,000, but your loan has a remaining balance of just $2,000. You may be able to refinance your loan for up to $10,000 and take the $8,000 difference in cash.\nThe amount you can get in cash will depend on a few factors, including how much you owe, the value of the vehicle and the lender. Some lenders may allow borrowers to get a new loan that's 100% of a vehicle's value, but actual terms can vary.\nWhen you apply for a cash-out auto refinance, a lender will review your existing loan information, determine the value of your vehicle, and review your credit and financial information to determine whether you qualify.\nJust keep in mind that not all lenders that offer auto refinance loans allow cash-out options. As a result, you may need to take some time to research and compare the lenders that do. END
 TITLE: What Is a Cash-Out Auto Refinance? CONTENT: When Could a Cash-Out Auto Refinance Make Sense?\n------------------------------------------------\nThere are a few situations in which it might be a good idea to tap your car's equity through a cash-out auto refinance:\n*   **You can get better loan terms.** If your new loan would have a lower interest rate than your current one, refinancing with or without cash back may be a good idea. Securing a lower rate is more likely if your credit score has improved or market interest rates have dropped since you took out your original auto loan. And if you need a little cash for something else, a lower interest rate could keep your monthly payment around the same as it was on your original loan.\n*   **You want to consolidate debt.** If you qualify for a low interest rate on an auto refinance loan, but you have higher-interest debt you want to pay off, getting cash back on your refinance loan could allow you to pay off that more expensive debt, essentially consolidating it into the low-interest loan. Consolidating unsecured debt this way will convert it to secured debt, meaning you risk repossession if you're unable to pay it back.\n*   **You have emergency expenses.** If your financial situation is tight, a cash-out auto refinance could be a relatively inexpensive way to get some cash to pay for emergency expenses. With good credit, you can get a much better rate with an auto refinance loan than with a personal loan or credit card.\nConsider your situation to determine whether a cash-out auto refinance can help you. END
 TITLE: What Is a Cash-Out Auto Refinance? CONTENT: What Are the Risks of a Cash-Out Auto Refinance?\n------------------------------------------------\nWhile using your vehicle's equity to consolidate high-interest debt or cover emergency expenses can be helpful, it's also important to understand the potential pitfalls that could make your financial situation even worse:\n*   **You could increase your existing debt.** If you're using a cash-out auto refinance to pay for emergency expenses, increasing your debt—and associated monthly payments—could make your situation even more challenging. Unless you're certain you'll be able to afford the higher monthly payments, look elsewhere for relief.\n*   **You could go upside down on your loan.** Most vehicles depreciate fairly quickly, potentially faster than you can pay down the loan balance. If you borrow 100% of your car's value or close to it, rapid depreciation could mean you end up with negative equity. If you end up selling the car or total it in an accident, you may be on the hook for the difference between the car's value and what you owe on the loan.\n*   **You run the risk of repossession.** If you're struggling financially, increasing your monthly payment with a cash-out auto refinance loan could make it increasingly difficult to keep up. If you stop making payments, the lender may repossess the vehicle—leaving you without a car and a negative mark on your credit report to boot.\nMake sure you're considering both the benefits and the drawbacks of a cash-out auto refinance before you pull the trigger.  \nHow Does Refinancing an Auto Loan Affect Credit?\n------------------------------------------------\nIn general, refinancing your auto loan won't have a significant impact on your credit score. When you first apply for the loan, the lender will run a hard inquiry on your credit report, which can temporarily lower your credit score by a few points.\nKeep in mind that when you're shopping around, all of your hard inquiries will be combined into one for credit score calculations, as long as you complete your rate-shopping within a short period—14 to 45 days depending on the credit score model being used.\nIf approved, the new auto loan will also reduce your average age of accounts, which impacts your length of credit history. And, of course, if your new loan is higher than your old one because you took cash out of your vehicle's equity, it could impact your amounts owed.\nHowever, as long as you make your payments on time and manage your other debts well, you likely won't see any long-lasting negative effects with an auto loan refinance.  \nShould You Do a Cash-Out Auto Refinance?\n----------------------------------------\nThere's no one-size-fits-all answer to whether a cash-out auto refinance is right for someone or not. As such, it's crucial that you take the time to consider your situation, your reasons for wanting one and other alternatives you have to accomplish your goal.\nAlso, be sure to check your credit score before you start applying. The higher your credit score, the better your chances will be of scoring favorable terms on the new loan. If your credit isn't where you want it to be, it may make sense to take steps to improve your credit before you apply for a new auto loan. END
 TITLE: What Is a Cash-Out Auto Refinance? CONTENT: How Does Refinancing an Auto Loan Affect Credit?\n------------------------------------------------\nIn general, refinancing your auto loan won't have a significant impact on your credit score. When you first apply for the loan, the lender will run a hard inquiry on your credit report, which can temporarily lower your credit score by a few points.\nKeep in mind that when you're shopping around, all of your hard inquiries will be combined into one for credit score calculations, as long as you complete your rate-shopping within a short period—14 to 45 days depending on the credit score model being used.\nIf approved, the new auto loan will also reduce your average age of accounts, which impacts your length of credit history. And, of course, if your new loan is higher than your old one because you took cash out of your vehicle's equity, it could impact your amounts owed.\nHowever, as long as you make your payments on time and manage your other debts well, you likely won't see any long-lasting negative effects with an auto loan refinance. END
 TITLE: What Is a Cash-Out Auto Refinance? CONTENT: Should You Do a Cash-Out Auto Refinance?\n----------------------------------------\nThere's no one-size-fits-all answer to whether a cash-out auto refinance is right for someone or not. As such, it's crucial that you take the time to consider your situation, your reasons for wanting one and other alternatives you have to accomplish your goal.\nAlso, be sure to check your credit score before you start applying. The higher your credit score, the better your chances will be of scoring favorable terms on the new loan. If your credit isn't where you want it to be, it may make sense to take steps to improve your credit before you apply for a new auto loan. END
 TITLE: Can You Buy a Car With a Repossession on Your Credit Report? CONTENT: How Does Auto Repossession Work?\n--------------------------------\nWhen you finance a vehicle purchase with an auto loan, the lender owns the car until you pay off the debt—at that point, the lender will send you the title, and you'll own the vehicle free and clear. And since the car is theirs while you make payments, the lender has the right to take possession of it if you stop making payments on your loan.\nRepossession laws vary from state to state, and lenders can set different rules on how long your account can be delinquent before it's determined to be in default. In many states, lenders are even allowed to seize the vehicle without notice as soon as you're in default. State or local laws may also prohibit lenders from certain tactics, such as removing a car from a closed garage without your permission, using physical force or making threats.\nOnce your car is repossessed, a lender may sell it at auction to recoup its losses. If your car is auctioned for less than what you owe, you may still owe the difference to the lender. You'll also be on the hook for expenses related to the repossession, including storage, sale preparation costs, attorney fees and more. END
 TITLE: Can You Buy a Car With a Repossession on Your Credit Report? CONTENT: It's possible to secure financing for a vehicle after a repossession, but you'll have a harder time finding lenders. This is primarily because a repossession signals a default on your loan, which is something lenders are likely to consider when determining whether to extend credit.\nYour payment history is one of the most important factors in your creditworthiness and, as a result, many traditional banks and lenders may not work with you if you've previously defaulted. If you do get approved, either through a bank, credit union or an online lender, you can expect the loan to have unfavorable terms, including a high interest rate.\nTo improve your chances of getting a car loan, consider asking a trusted family member to cosign the application with you. The lender will consider the credit histories of both people who signed the loan to make a decision. When someone cosigns a loan, they are agreeing to assume responsibility if the primary borrower stops making payments. So if you think you may end up in the same situation as you were with your past repossession, you could end up risking your cosigner's financial and credit health as well.\nWithout a cosigner, you may be able to increase your chances of getting a car loan by putting more money down and—if you have the time—working on improving other aspects of your credit history. END
 TITLE: Can You Buy a Car With a Repossession on Your Credit Report? CONTENT: How Repossession Affects Your Credit Score\n------------------------------------------\nA repossession can stay on your credit report for up to seven years from the original delinquency date. And since your payment history is the most influential factor in your FICO® Score☉ , the missed payments leading up to your repossession will also have a significant negative impact on your credit score. Here are the different ways it can hurt you:\n*   **Late payments**: Before the lender seizes your vehicle, it'll report your initial late payments that can lead to a default and repossession.\n*   **Default**: A repossession is a sign that you didn't pay your debt as originally agreed, and once the lender reports that you defaulted, it can hurt your score even more than the late payments.\n*   **Collections**: In many cases, auto lenders don't send an auto loan to collections because they can seize the vehicle and sell it to collect the debt. However, if there's still a balance on your loan after the sale has been completed, the lender may send that portion of the debt to a collection agency if you can't pay it back. END
 TITLE: Can You Buy a Car With a Repossession on Your Credit Report? CONTENT: Ways to Avoid Repossession\n--------------------------\nBecause a repossession can have such a big impact on your credit history and score, it's important to take steps early to avoid missing payments on your auto loan and risking default. Here are some things you can do:\n*   **Communicate with your lender.** It's in both your and your lender's best interest to find a way to keep you current on your auto loan. Depending on the lender and your situation, this may include a modified payment plan or forbearance, which allows you to pause payments for a few months while you get back on your feet.\n*   **Refinance your loan.** If possible, you may be able to refinance your loan through another lender and ask for a longer repayment term. While this means you'll end up paying more in interest over the life of your loan, it could help you reduce your monthly payment to a more affordable level.\n*   **Ask for help.** Loved ones may be willing to help you financially, which could provide the short-term relief you need to keep up with your payments and avoid default. You may also be able to request financial assistance from the government or community assistance programs to cover other aspects of your budget, such as groceries and utilities, allowing you to use that cash flow to make your debt payments.\n*   **Surrender the vehicle voluntarily.** If you're getting close to defaulting on your loan and can't find a way to avoid doing so, you may choose to voluntarily surrender the vehicle to your lender. This can not only be a better experience emotionally, but could also be a way to save money on repossession-related expenses.\nIf you're worried about missing a payment on your auto loan, take steps immediately to try to avoid going down the path toward default and repossession. END
 TITLE: Can You Buy a Car With a Repossession on Your Credit Report? CONTENT: Monitor Your Credit After a Repossession\n----------------------------------------\nIf your vehicle has been repossessed, your credit score will likely take a sizable hit. But while those negative items will remain on your credit report for several years, their influence will diminish over time, especially if you develop and maintain a positive credit history going forward.\nAs part of that endeavor, monitor your credit regularly to keep track of your score and how different actions affect it. Also, request a copy of your credit report and read through it to pinpoint other areas you may be able to address to improve your credit situation.\nCredit score recovery after a repossession can take time, but it can not only make it possible to improve your chances of getting approved for an auto loan in the future but also make it easier to qualify for favorable terms. END
 TITLE: What Is the Best Way to Pay for a Car? CONTENT: Use Your Personal Savings to Pay for a Car\n------------------------------------------\nWhile it might be unrealistic to save enough cash to buy a brand-new car outright, it's a wise strategy to pay with cash if you're able to buy an inexpensive used car. By paying with cash savings instead of taking out a loan, you save money by not paying interest.\nTry to plan far enough ahead that you're able to build up a healthy savings account. Think about how much you'd be paying every month to finance a new car and set aside an equivalent amount every few weeks. In two or three years, you'll have a significant sum of money built up that could totally cover the cost of a vehicle (or at least significantly reduce the amount you'll need to finance). If you find someone to buy your existing car, proceeds from the sale can go toward funding the purchase.\nIf you already have a savings account in the form of an emergency fund, it's usually best to avoid using it to pay for a car unless you're in a really tight spot—your car died and you don't have another way to get to work, for example. It's best to keep that money there for true emergencies, and instead use general savings intended for big purchases. END
 TITLE: What Is the Best Way to Pay for a Car? CONTENT: Find a Low-Interest Auto Loan\n-----------------------------\nConsumers often turn to auto loans to finance car purchases when they can't pay for it with cash. These are secured installment loans, meaning you repay in fixed monthly installments, and if you can't keep up, you risk the car being repossessed.\nWhen financing a car, do everything you can to get the lowest possible interest rate on your loan. Due to the size of an auto loan, interest can add significantly to the total cost of the vehicle. For example, a $12,000 auto loan with a 7% interest rate and a 60-month term will end up costing you $14,257 by the time you've paid it off. That's $2,257 that could have otherwise gone toward a down payment on a home or other financial goals. Getting that interest rate down to 4% could save you roughly $1,000 on your loan.\nYou have several lender options when financing a car:\n*   **A bank or credit union**: Check the borrowing options your bank or credit union can offer you before you start shopping for a vehicle. They may be able to preapprove you for a loan with a lower interest rate than you'd get elsewhere. Once you have the loan documents in hand, you can bring them with you to a dealer to show you're qualified to buy a car up to a certain price. Be aware that financial institutions often charge different interest rates depending on whether the car is new or used, in addition to the age and mileage on the car. However, going through a lender typically means lower loan interest rates than going through a dealer.\n*   **An online lender**: If you'd rather not go through your own bank or credit union, or if you're not able to get approved, many online-only lenders now offer auto purchase loans. These lenders typically offer quick approval and may be more lenient on approval and rates if your credit isn't in tip-top shape.\n*   **The car dealer**: If you don't get preapproved by a lender before you go car-shopping, you can apply for financing at the car dealership once you've selected a vehicle. It may be easier to get approved through the dealership financing office than with a traditional lender. They'll typically shop your application with several lenders they partner with and provide you with a few options to compare. The vehicle manufacturer also may offer financing themselves, which is called captive financing.The rates you'll get from a dealership may be higher than what you'd get from a bank since the dealership may bump up your rate slightly in order to collect a cut. Some dealerships offer 0% APR promotions or other offers on new cars, so it could be worth going through a dealer if the savings are worth it. Some dealers even offer financing directly (buy here, pay here), but it's usually geared toward those with bad credit and comes with steep fees. END
 TITLE: What Is the Best Way to Pay for a Car? CONTENT: Explore Other Borrowing Methods\n-------------------------------\nThere are a few other, less common ways to finance a car. These typically aren't recommended, but here's what you should know.\n*   **Credit cards**: Wondering if you can buy a car with a credit card? Dealerships often have limits on how much can be put on plastic; but you may be able to use a card to cover some or all of your down payment. You may even be able to pay the entire purchase amount with a card depending on dealership policies and your credit limit. If you plan to put some of all of the car on your credit card, you may need to contact your card issuer first to make sure the large transaction will be approved.  \n    Before moving forward, understand that this payment method could be unwise for several reasons, not the least of which is the fact that credit card interest rates are usually much higher than auto loans. Furthermore, carrying a large balance can hurt your credit since it'll drive up your credit utilization ratio. If you can't pay it off right away, opt for an auto loan instead.\n*   **Personal loans**: Just like auto loans, personal loans are installment loans that are repaid monthly with interest. They differ in that they are usually unsecured loans, so if you buy a car or anything else with a personal loan, it can't be repossessed if you don't pay (but your credit will take a big hit). While personal loans may be easier for car buying if you're purchasing a vehicle from an individual rather than a dealership, their interest rates are usually higher than what you'd get from a comparable auto loan. So if you're looking to spend the least amount of money, an auto loan is usually your best bet.\n*   **Borrow from a loved one**: If you have a friend or family member willing to give you an interest-free loan, asking for their help could get you behind the wheel of a new car and save you a lot of cash in the process. You don't have to borrow the entire amount either; this could be an option to make up the difference if you don't have quite enough to complete the transaction. This method isn't one you should count on, though, since it can be hard to find and persuade someone to go through with this. Additionally, failure to repay can irreparably damage your relationship with whomever you borrow from. If you do choose this option, draw up a promissory note that outlines the terms so your lender can be confident you'll repay. END
 TITLE: What Is the Best Way to Pay for a Car? CONTENT: Steps to Take Before You Take Out an Auto Loan\n----------------------------------------------\nIf you decide to take out an auto loan to pay for your car, do plenty of research before you sign on the dotted line.\nGetting preapproved before visiting a dealership can help you understand how much you can afford to spend, which can help you narrow down which car to buy. To find the best rate, get preapproved with more than one lender. Your credit score can impact whether you're approved and what interest rate you receive; the better your credit, the more favorable the loan terms will be.\nWhen looking at quotes, you'll want to look at the loan's interest rate, term (amount of time over which you pay off the loan), any taxes and fees, and the total monthly payment amount. This can help give you a sense of the overall cost of the loan and ensure the car payment will fit within your monthly budget.\nIf you do take out a loan, you'll also most likely need to put some money upfront as a down payment. The more you put down, the lower the loan balance will be and the less you'll pay in interest fees over the life of the loan. END
 TITLE: What Is the Best Way to Pay for a Car? CONTENT: Improve Your Credit First\n-------------------------\nIf your credit isn't in great shape right now and you need a loan to purchase a car, it's best to work on improving your credit before you buy. While this isn't always possible if you're in a time crunch, if you can wait several months, it would be prudent to use that time to increase your credit score first. To do this, keep your credit card balances low, pay down as much debt as possible and pay every bill on time. It's also smart to monitor your credit so you can make sure your hard work is paying off. Experian Boost™† can also give your credit a bump by adding on-time cellphone, utility and other payments to your credit report. END
 TITLE: When Is the Best Time to Buy a Car? CONTENT: Make Sure Your Finances Are in Order\n------------------------------------\nAs with any major purchase, it's best to avoid buying a car unless you have the means to do so. Create a budget to get an idea of your income and expenses, and how much room you have for a car payment—assuming you're not planning to buy the vehicle outright.\nAs you try to figure out how much car you can afford, you'll need to run some numbers. That's because your monthly payment is dependent on a few things, including:\n*   The sales price\n*   Your down payment or trade-in value\n*   The loan's interest rate\n*   The loan's repayment term\nFor example, let's say you're looking at a car with a $15,000 sales price that already includes all the add-ons, fees and taxes. If you're planning to put $2,000 down, your loan amount is $13,000. Now, let's say you qualify for a 3.49% interest rate and you have the choice between 48, 60 or 72 months for your repayment term. Here's how your monthly payment would differ depending the length of your loan term:\n*   **48 months**: $291\n*   **60 months**: $236\n*   **72 months**: $200\nWith this information, you'll have a good idea of whether you can afford that particular vehicle, and how the monthly payment would affect your budget. Keep in mind, though, that while a longer term will give you a lower monthly payment, you'll end up spending more on interest charges, which will make the vehicle more expensive overall.\nWhen it comes to actually getting a car loan, many dealerships can help you do this through dealer-arranged financing. But it's also a good idea to do your own research and get prequalified with at least a few lenders so you can compare rates, fees and other terms. END
 TITLE: When Is the Best Time to Buy a Car? CONTENT: Know Where Your Credit Stands\n-----------------------------\nIf you're planning to borrow money to finance your new vehicle, it's crucial that you take the time beforehand to understand your credit and, if necessary, take steps to improve it. Each lender is different and there's no universal minimum credit score for car loans, but a higher score will generally make it easier to score a low interest rate on your new loan.\nStart by checking your credit score to see where you stand. A FICO® Score☉ of 670 or higher is considered good, and scores in the upper 700s or higher will give you an even better shot at a low interest rate.\nIf your score needs some work, check your credit report to find out which areas you can address. For example, you may have some past-due payments you need to get caught up on, or you might need to pay down some of your credit card balances to reduce your credit utilization rate.\nWhile you're looking for ways to improve, also check your credit report for information that's inaccurate. You can dispute incorrect or fraudulent information, which may be removed or revised depending on the outcome of the dispute.\nOther ways to improve your credit history include:\n*   Continuing to make all payments on time, and keeping your credit card balances as low as possible\n*   Keeping old credit card accounts open and active\n*   If a family member has a credit card with a positive payment history, asking them to add you as an authorized user could help\n*   Avoiding applications for new credit unless it's necessary\n*   Using Experian Boost™† to get credit for utility and phone payments\nBuilding your credit score can take time, but even a modest improvement can result in a lot of savings. If you don't have time to improve your credit before you apply for a car loan, keep in mind that you can refinance the loan later after you've had a chance to increase your credit score. END
 TITLE: When Is the Best Time to Buy a Car? CONTENT: Making sure your budget and credit are in order are essential steps in buying a new car. But once you're in good financial shape, your timing can make a difference in terms of the deal you get. END
 TITLE: When Is the Best Time to Buy a Car? CONTENT: Additional Car-Buying Tips\n--------------------------\nWhile the right timing can help you save money on a car purchase, it's not the only thing to keep in mind. To find the right fit and save, try to do the following:\n*   **Define your budget early.** Know how much you're willing to spend on a vehicle before you ever step foot on a dealership. Salespeople often try to frame the cost as a monthly payment, which they can manipulate with longer repayment terms. But if you're firm about your budget from the get-go and understand the terms of the sale, you can avoid overspending.\n*   **Do your research.** If you're in the market for a specific model, research prices at several dealerships in your area. Also, look up the value of the vehicle using Kelley Blue Book or NADAguides. This information can give you more negotiating power with a salesperson.\n*   **Save up for a down payment.** You don't have to have a huge down payment for an auto loan, and some lenders even offer 100% financing. But the more money you put down on the purchase, the less you'll have to borrow. A larger down payment can also help you score a lower interest rate.\n*   **Consider buying used.** Brand-new cars are appealing for many reasons, but you'll generally save a lot of money buying used, even if the car in question is only a few years old. The value of a new car drops quickly once it's driven off the lot, and letting someone else take that hit can mean big savings for you.\n*   **Read the contract.** Vehicle purchase contracts are long and full of fine print, so it's important to know what you're getting yourself into before you sign. Specifically, look at the fees the dealer is charging and ensure there are no add-ons that you didn't agree to. Also, check for late fees and prepayment penalties if you choose to pay off the loan early.\nWith this and other tips for car buyers in mind, it's more likely you'll have a good car-buying experience. END
 TITLE: When Is the Best Time to Buy a Car? CONTENT: Continue to Monitor Your Credit\n-------------------------------\nWhile it's important to know where your credit history stands before buying a car, it's crucial to continue building and maintaining a good credit score afterward. Experian's credit monitoring service can help by providing you with free access to your FICO® Score powered by Experian data.\nYou'll also get insights into your spending habits and customized alerts about new inquiries and accounts added to your Experian credit report. END
 TITLE: How to Buy a Car During the COVID-19 Pandemic CONTENT: Are Car Dealerships Open?\n-------------------------\nMany states and counties have stay-at-home or shelter-in-place orders that prevent dealerships from operating as usual. As a result, you may not have the opportunity to shop for a car in person.\nKeep in mind, though, that health and safety orders are fluid, and many states are beginning to relax certain rules as conditions continue to evolve. So while your local dealerships might not be open now, they may be in the near future.\nWhen the dealerships do open, you can expect them to practice social-distancing rules, such as solo test drives, home delivery and no-contact pickups. In some cases, test drives may not even be an option, which could be a deal breaker for many buyers.\nIf you're planning to buy a car in person, try to do all of your research online so you can avoid spending more time at the dealership than you have to.\nIf you can't wait or you want to avoid going out even with relaxed rules, it's possible to shop for and buy a car online. Carvana, for example, allows you to browse used-vehicle inventory and complete your purchase, including financing, from your kitchen table. A delivery driver will bring the car to you, and you'll have seven days to return or exchange it.\nThere may be some costs associated with delivery, however, if you don't live in one of Carvana's local markets. END
 TITLE: How to Buy a Car During the COVID-19 Pandemic CONTENT: Trade-Ins Can Be Complicated\n----------------------------\nIf you're planning to trade in your current car to reduce the price of the new one, the appraisal process may vary by dealer. Some, for instance, may avoid the most frequently used areas of your car, and the interior may need to be cleaned before a technician takes it for a test-drive.\nCall your local dealer ahead of time to find out what their appraisal process looks like to make sure you feel safe.\nAlso, consider selling the vehicle to a private party instead of trading it in at the dealership. While trade-ins are much more convenient, you could get hundreds or even thousands of dollars less than if you were to sell the car on your own. The process can take more time, but if you're hurting for cash or simply want to maximize your savings on the new car, a private-party sale could be a better option if you can complete the process with current restrictions in mind. END
 TITLE: How to Buy a Car During the COVID-19 Pandemic CONTENT: Now May Be a Good Time to Buy\n-----------------------------\nEven if dealerships in your area are doing business as usual, there are likely fewer people in the market to buy a car, especially considering over 30 million U.S. workers have filed unemployment claims since the coronavirus crisis began.\nThis lower demand means that you'll not only be more likely to find the model you want, but you may also find salespeople more motivated to negotiate on your terms to meet sales goals.\nAlso, due to interest rate cuts by the Federal Reserve, you may be able to get a lower interest rate on your auto loan. Note, however, that some lenders are tightening credit criteria to reduce their exposure to risk, so you may need a higher credit score, more income and a bigger down payment than would have been required before the pandemic began.\nAlso, keep in mind that while there aren't currently any model shortages, many domestic and international car manufacturers have shut down or reduced production, so there may less inventory of new models later in the year. There will also likely be delays for the 2021 model year. END
 TITLE: How to Buy a Car During the COVID-19 Pandemic CONTENT: What to Do if Your Current Lease Is Expiring Soon\n-------------------------------------------------\nDepending on the dealership you leased your car from, you may have a few different options with your expiring lease. For example, you may be able to return the vehicle through the service department, or the dealer may have someone pick up the car at your home.\nIn some instances, the dealer may simply extend your lease agreement for a few months to avoid potential problems with returning it.\nOf course, you'll also have the option to purchase the vehicle at the end of the lease. If you're considering this, do some research to find the value of the vehicle and compare that with the sales price.\nIf the car is worth more than what the dealer is asking for, buying may be a good idea. But if you'll end up paying more than what the car is worth, replacing it with a new lease or buying a new or used car may be a better option. END
 TITLE: How to Buy a Car During the COVID-19 Pandemic CONTENT: Consider Your Financial Situation Before You Pull the Trigger\n-------------------------------------------------------------\nThe current situation is complicated, and while you may be financially able to purchase a new car now, things can change quickly. If you work in an industry that may be impacted by the coronavirus crisis, it may be best to hold off on major purchases until things go back to normal.\nThe last thing you want to do is to get locked into a car loan payment, then lose your job. Some lenders are willing to work with you if you're experiencing financial hardship, but it's not the same as avoiding the issue in the first place.\nUnless buying a new car right now is a necessity, think twice before you start the process. END
 TITLE: How to Buy a Car During the COVID-19 Pandemic CONTENT: Stay Safe While Buying a Car\n----------------------------\nThe best way to stay safe is to avoid buying a car unless absolutely necessary. But if you're in an emergency situation or you want to take advantage of low demand, here are some steps you can take to remain safe during the pandemic:\n*   Do as much research online as possible to minimize in-person contact.\n*   Consider purchasing your car online instead of at the dealership.\n*   Talk to local dealers to understand which measures they're taking to protect customers.\n*   Try to avoid dealers that limit your interactions with the vehicles, such as not allowing test drives.\n*   Shop around for auto loans online before you head to the dealership.\n*   Wear a face mask at the dealership and use hand sanitizer or wash your hands after being in contact with other people or touching surfaces. END
 TITLE: How to Buy a Car During the COVID-19 Pandemic CONTENT: Check Your Credit Score Before You Buy\n--------------------------------------\nUnless you're buying a car outright with cash, you'll need to finance the vehicle with an auto loan. The best interest rates are generally reserved for people with great credit, so check your credit score to see where you stand.\nIf your credit isn't in great shape and you have time before you need to purchase a car, work to improve your credit before you start the car-buying process. If not, you may end up with a relatively high interest rate, or you may not get approved at all. Taking the time to boost your score could pay off when it's time to buy. END
 TITLE: Can I Buy a Car With a Credit Card? CONTENT: Can I Use My Credit Card for the Down Payment?\n----------------------------------------------\nA vehicle is a major purchase, and putting money down not only reduces how much you owe but also drops your monthly payment—and could even qualify you for a lower interest rate.\nDepending on the dealer, you may be able to use your credit card for some or all of the down payment. Dealers may limit how much you can put down with a card because they're charged merchant fees on the transaction and might want to limit their costs.\nIf you want to use your card to earn rewards on the transaction, ask the dealer before your visit so you know what to expect.\nIf you're purchasing a car from a private party, though, don't expect to be able to use your card for the down payment. This is because you'll be working directly with a bank or credit union instead of going through a dealership, and financial institutions are less likely to allow such a transaction.\nOne thing to keep in mind is that just because you can put money down with your credit card doesn't mean you should. In general, it's best to use your card only if you have a rewards credit card and can afford to pay off the down payment when you get your bill.\nYou may also consider using a credit card with an introductory 0% APR promotion to make your down payment. But if you don't have a clear plan to pay off the balance during the promotional period or if your financial situation changes, you may end up paying much more in interest than if you hadn't used the card. END
 TITLE: Can I Buy a Car With a Credit Card? CONTENT: Can I Make Regular Monthly Payments With a Credit Card?\n-------------------------------------------------------\nMost auto lenders don't allow you to use a credit card for monthly payments, and if any do, they may charge you a convenience fee that outweighs the value of the rewards you'd earn.\nOf course, if your credit card issuer sends you a balance transfer check in the mail, you could technically use one to make a payment on your auto loan or even pay it off in full. The check acts just like a personal check but is tied to your credit card's credit limit instead.\nKeep in mind that even with an introductory 0% APR promotion, you'll typically be charged balance transfer fees, which can range from 3% to 5% of the amount transferred. Also, you may still run into the same problems with interest using a card with an introductory 0% APR for a down payment—if you have a balance remaining when the promotion ends, it could end up costing you more.\nIn most cases, it's best to avoid using your credit card to make payments toward your auto loan. If you're struggling to make your payment and have a balance transfer check available, it may be a good option compared with not paying at all. But be sure to have a plan in place to pay back the debt before the promotional period ends to avoid a high interest rate. END
 TITLE: Can I Buy a Car With a Credit Card? CONTENT: Can I Purchase a Vehicle With a Credit Card?\n--------------------------------------------\nIt is possible to put an entire vehicle purchase on your credit card, but whether you're allowed to can depend on the dealer's policy and the size of your credit limit. Also, due to the size of the transaction, you may need to get permission from your credit card issuer.\nAgain, it's important to keep in mind that purchasing a car with a credit card generally makes sense only if you have the cash on hand to pay off the balance. Otherwise, you'll likely end up paying more in interest than you would with an auto loan. END
 TITLE: Can I Buy a Car With a Credit Card? CONTENT: How Buying a Car With a Credit Card Could Affect Your Credit Score\n------------------------------------------------------------------\nEven if you do pay off your full credit card balance after an auto purchase during your credit card's grace period, the purchase can still impact your credit score temporarily.\nThat's because such a large purchase would likely cause your credit utilization ratio—your card's balance divided by its credit limit—to spike. How much you owe on your credit card accounts is a big part of your FICO® Score☉ calculation, and your utilization ratio is a significant component of that. Experts recommend keeping your utilization under 30% to avoid hurting your credit score.\nYour credit utilization ratio is calculated based on the balance reported to the credit bureaus by your card issuer at the end of your current billing cycle. So if you pay off the balance before your monthly statement closes, the purchase likely won't affect your credit score at all.\nBut if you wait until after the statement closes to pay the balance in full, or you carry the balance over the course of several months, it can cause your credit score to drop significantly. END
 TITLE: Can I Buy a Car With a Credit Card? CONTENT: Check Your Credit Score Before Your Vehicle Purchase\n----------------------------------------------------\nWhether or not you're planning to make a down payment with your credit card, it's a good idea to check your FICO® Score to know where you stand.\nIf your score needs some work and buying a new vehicle isn't a necessity, it may make sense to take some steps to improve your credit in case you need to apply for a loan. Doing so could save you hundreds or even thousands of dollars in interest. END
 TITLE: How to Get Help With Your Auto Loan During COVID-19 CONTENT: The Coronavirus Aid, Relief and Economic Security (CARES) Act enacted in late March provides significant relief in many forms, including expanded mortgage loan forbearance options and an automatic suspension of payments on federal student loans.\nBut because the government doesn't guarantee auto loans like it does many mortgages and student loans, it isn't extending these benefits to auto loan borrowers. If you're looking for relief with your auto loan, here are some options to consider. END
 TITLE: How to Get Help With Your Auto Loan During COVID-19 CONTENT: Don't Forget About Car Insurance\n--------------------------------\nYour auto insurance policy isn't tied to your auto loan, but it could still present an opportunity for saving. Here are some potential ways you can reduce your auto insurance premiums:\n*   **Contact your insurer.** Speak to your current insurance agent to see if there are ways to cut back on your monthly rate without sacrificing too much of your coverage. For example, if you no longer have a commute, you may be able to save as your expected annual mileage has dropped.\n*   **Shop around.** Regardless of how long it's been since you compared auto insurance rates, it may be a good time to shop around to see if you're leaving money on the table. Search online and request quotes from multiple insurers to make sure you get the best rates available.\n*   **Make changes to your policy.** Take a look at your policy to see if you can get rid of unnecessary coverage or increase your deductibles to save money on your monthly rate, making sure you abide by your lender's insurance requirements. And keep in mind that if you cut too much, it could backfire if you end up needing it in the future.\nIt's hard to say exactly how much you can save on your insurance bill with these efforts, but even a small amount can make a big difference when you're struggling. END
 TITLE: How to Get Help With Your Auto Loan During COVID-19 CONTENT: Look for Other Ways to Save and Make Money\n------------------------------------------\nIf you're struggling to make your monthly auto payments, cutting your budget in other ways could help make more room to pay your debts. Look for opportunities to cut unnecessary expenses, including subscriptions and other recurring charges.\nAlso, look for ways to make money fast, such as getting temporary work, selling unused items and more. END
 TITLE: How to Qualify for a 0% APR Car Loan CONTENT: How Does a 0% APR Car Loan Work?\n--------------------------------\nZero percent APR car loans are auto loans with no interest rate. This means you can finance a new vehicle purchase, and 100% of your monthly payment will go toward the principal balance of the loan—there are no interest charges whatsoever.\nCar dealers usually offer 0% financing on new cars only, and you typically need to have a very strong credit history to qualify for such an offer.\nThese promotions are typically available only from what are called captive financing companies—the finance arms of vehicle manufacturers, such as Ford Motor Credit Co. or Toyota Motor Credit Corp. Manufacturers use these deals to incentivize customers to purchase brand-new vehicles, which sell at a significantly higher cost than used vehicles. You may receive an advertisement from a local dealer that encourages you to check out a new car and apply. END
 TITLE: How to Qualify for a 0% APR Car Loan CONTENT: How to Qualify for 0% Financing\n-------------------------------\nIt's possible to qualify for a car loan even if you have bad credit, but having a good credit score is important if you want to qualify for a low interest rate. And if you're hoping to score a 0% APR car loan, you'll likely need a very good or exceptional FICO® Score☉ , which means a score of 740 or above.\nBefore you start shopping for a new vehicle, take some time to check your credit score to see where you stand. Also, get your credit report from one or more of the national credit reporting agencies (Experian, TransUnion and Equifax) to see where you stand. You can get a free report once a year from each agency at AnnualCreditReport.com. Experian also offers a free credit report every 30 days on sign in.\nReview your credit report and make sure to file a dispute with the credit bureaus if you find anything you believe is inaccurate or the result of fraud. The bureaus investigate these potential discrepancies and will revise or remove them from your credit report if they find that they're inaccurate or fraudulent.\nAlso, take note of any actions you can take to improve your credit:\n*   Always pay your bills on time.\n*   Pay down your credit card balances.\n*   Avoid closing old credit cards.\n*   Apply for new credit only if you need it.\nIf you've made late payments or have other negative credit items on your report, it may take a while for your credit history to recover enough to qualify for a 0% APR car loan. If you don't need a car right away and can work on improving your score, you may qualify down the road. END
 TITLE: How to Qualify for a 0% APR Car Loan CONTENT: What to Keep in Mind When Considering 0% Financing\n--------------------------------------------------\nYou may wonder if 0% APR car loans come with a catch. The answer is yes, there are some potential drawbacks to consider:\n*   **Dealers may try to make up the cost elsewhere.** In some cases, dealers may increase the sales price of the vehicle or add pricey fees to the contract to make up for the interest savings that you gain. Also, you may experience pressure to buy add-on products, such as a maintenance package or gap insurance. To maximize your savings, do your research on car prices and avoid products you don't need.\n*   **Payments can still be high.** If you're buying a brand-new car, the monthly payment may be high even without interest charges added on. Run the numbers on your budget to determine whether you can afford the loan payments and how they might impact your ability to work toward other important financial goals.\n*   **They typically come with long repayment terms.** To help reduce the cost of the monthly payment, dealers may encourage you to apply for a loan with a long repayment term—some go as high as 72 or even 84 months. But locking yourself into such a long financial commitment like that can make it challenging to make meaningful progress with other money goals. If you can afford it, opt for a shorter repayment term.\nAlso, keep in mind that you can negotiate the car loan and the terms of the sales contract. Do your research on car prices, fees, add-ons and other aspects of the car-buying process before you head to the dealership, so you can gain some leverage. END
 TITLE: How to Qualify for a 0% APR Car Loan CONTENT: Alternatives to 0% Financing\n----------------------------\nIf you don't qualify for a 0% APR car loan, you still have other options. Credit unions, banks and auto finance companies all offer low interest car loans that may fit in your budget.\nTo find the lowest interest rate that you can qualify for, it's important to shop around and compare rates and terms from several lenders. In addition to the interest rate, also look at loan repayment terms, prepayment penalties and other features that could impact your financial situation.\nThis process can take some time, but it's essential to help you get a car loan that fits your budget and maximizes your savings. END
 TITLE: How to Qualify for a 0% APR Car Loan CONTENT: Monitor Your Credit Even After Getting a Loan\n---------------------------------------------\nWhether you qualify for a 0% APR car loan or opt for an alternative rate, it's important to continue to stay on top of your credit in case you need to apply for credit again in the future.\nExperian's credit monitoring service not only offers you free access to your FICO® Score powered by Experian data but also provides customized alerts on credit report activity, notices when your account balances change, and gives you the chance to increase your credit score with Experian Boost™† . END
 TITLE: What to Know About How Mortgage Interest Works CONTENT: How Is Your Mortgage Interest Rate Determined?\n----------------------------------------------\nWhen you're approved for a mortgage, the loan's interest rate will be based on the risk you pose as a borrower as well as factors related to your home, the loan and economic conditions. Because mortgage loans have long repayment terms—the most common options are 15 and 30 years—even a small change in your rate can make a difference of thousands of dollars in interest charges.\nHere are some of the most significant factors that lenders review to decide your loan's interest rate:\n*   **Current market rates**: Mortgage rates are constantly changing, and vary based on more than the individual circumstances of each loan. The lender, where you live and the state of the lending market all make a difference. Whatever the prevailing market rates are at the time you apply will essentially provide a range of rates that you may get based on all other factors.\n*   **How much you borrow**: The more money you borrow, the more of a risk you pose to the lender. As such, buying a less-expensive house or making a larger down payment could potentially help reduce your interest rate. Even if it doesn't, it'll save you money on interest because you'll have a smaller loan.\n*   **Your loan term**: In general, shorter loan terms across all loan types result in a lower interest rate. Again, the reason is that the longer you have to pay off a loan, the more of a risk of default you pose to the lender. If you can afford a 15-year mortgage, you'll score a lower interest rate than if you opted for a comparable 30-year loan.\n*   **Credit and income**: The higher your credit score, the likelier your chances are of qualifying for a lower interest rate. Also, lenders will review your income and debt situation to calculate your debt-to-income ratio (DTI). If you have a low ratio—that is to say, the percentage of your income that goes toward monthly debt payments is low—it could result in a lower rate.\n*   **Interest rate type**: Mortgage lenders often offer two types of interest rates: fixed and adjustable. With a fixed-rate mortgage, your rate remains the same for the life of the loan, and it generally starts higher than an adjustable rate. With the latter, your interest rate remains fixed for a set period. Once that period is over, it turns into a variable rate that can fluctuate with market rates. Adjustable rates typically start off lower but can ultimately cost you more if market rates climb higher than the fixed-rate alternative.\n*   **Closing costs**: In some cases, you may be able to have the lender pay your closing costs in exchange for a slightly higher interest rate. Also, lenders typically allow you to pay \"mortgage points\" as part of your closing costs. Mortgage points allow you to effectively buy a lower interest rate by paying more money upfront.\nWith this information in mind, you may be able to gain a little more control over what your interest rate will be on a mortgage loan. For example, having enough cash to make a large down payment and pay points at closing can help you score a lower interest rate. Also, maintaining a high credit score and paying down other debts can have the same effect. END
 TITLE: What to Know About How Mortgage Interest Works CONTENT: Difference Between a Fixed-Rate and an Adjustable-Rate Mortgage?\n----------------------------------------------------------------\nBoth fixed-rate and adjustable-rate mortgages have their pros and cons, but understanding how they differ can help you determine the right fit for your needs.\nWith a fixed-rate mortgage, your interest rate will never change for the life of the loan. It's a great option if you prefer certainty and plan to live in your home for a long time.\nIf you choose an adjustable-rate mortgage, your interest rate will start off lower than a fixed-rate mortgage, and it will remain the same for a set period—say three, five, seven or even 10 years. After the initial fixed period is over, though, your rate can go up or down each year, depending on the current market mortgage rates.\nThere are some guardrails in place to keep your interest rate from going up too much. But it still puts most of the risk on the borrower instead of the lender.\nAdjustable-rate mortgages don't provide as much certainty, but they may be worth considering if you're not planning on staying in your home for very long. For example, if you're thinking of living in a particular home for three to five years, an adjustable-rate mortgage with a five-year fixed period may be a good fit. END
 TITLE: What to Know About How Mortgage Interest Works CONTENT: What Is Mortgage Amortization?\n------------------------------\nAmortization is a process lenders use to calculate how much interest you pay on a loan and when. With a mortgage loan, as with any loan, you'll pay more interest at the beginning of the loan term and more principal toward the end.\nThis is because your interest rate is being applied to a higher loan balance at the beginning, then as you pay more and more of the principal loan amount, the balance the rate applies to decreases, which brings down your interest charges.\nCalculating amortization on a mortgage loan requires some complex formulas, and it's best to use an amortization calculator. You'll need the loan amount, interest rate and loan term. With an amortization calculator, you'll be able to see several things, including:\n*   How much total interest you'll pay over the life of your new loan.\n*   How much interest you'll pay each month.\n*   How much interest you'll pay with a 15-year mortgage versus a 30-year mortgage, or a fixed-rate loan versus an adjustable-rate loan.\n*   What your loan balance will be at the end of each month—this can help if you're paying private mortgage insurance and want to know when you'll reach an 80% loan-to-value ratio and can get rid of it.\nAs an example, we used an amortization calculator to run the numbers for a $300,000 loan with a 4% interest rate and a 30-year term.\nThe monthly payment on the loan would be roughly $1,432, but in the first month, $1,000 of that goes toward interest, and only $432 goes toward paying down your loan balance. Each month, that amount increases slightly as you pay down your balance. By year 21 the numbers have swapped, $1,000 of your payment will go toward paying down the balance and $432 goes toward interest. When you make your last mortgage payment, just $5 goes toward interest.\nBefore you apply for a mortgage, take some time to use an amortization calculator to understand what you're signing up for, and also to help you compare different loan terms and interest rate types to determine which is the best option for you. END
 TITLE: What to Know About How Mortgage Interest Works CONTENT: How Does Your Credit Score Affect Mortgage Interest Rates?\n----------------------------------------------------------\nYour credit score is an important indicator of how you've managed your debts in the past, so it's a crucial factor in determining whether you qualify for a mortgage and what your interest rate will be.\nMost mortgage lenders will have a minimum credit score requirement, which can vary by lender and the type of loan you're applying for. Just because you have a high credit score, though, doesn't mean you're eligible for a low rate. Lenders will also review your credit report, debt-to-income ratio and several other pieces of information to calculate your rate.\nBecause your credit score is such an important factor in the mortgage process, it's crucial to take steps to get your credit ready for a mortgage. Ways to do that include:\n*   Check your credit score to see where you stand and your credit report to determine if you need to address specific areas of your credit history.\n*   Pay down credit card balances and other debts.\n*   Avoid applying for credit in the months leading up to applying for a mortgage.\n*   Make it a priority to pay your bills on time every month.\n*   Dispute inaccurate information on your credit reports, if applicable.\nGetting your credit ready for a mortgage can take time, but again, even a small reduction in your interest rate could save you thousands of dollars. END
 TITLE: What to Know About How Mortgage Interest Works CONTENT: Continue to Monitor Your Credit After You Buy a Home\n----------------------------------------------------\nMaking a good impression when applying for a mortgage loan is crucial, but it's important to remain vigilant with your credit score after you get into your home. Experian's free credit monitoring tool can provide you with a lot of the information you need to stay on top of your credit and continue to improve it.\nThe service provides free access to your Experian credit report and FICO® Score☉ powered by Experian data. You'll also get real-time updates when new inquiries, accounts and personal information are added to your credit report.\nWith these features, you'll be in a good position to track your progress, spot issues as they arise and address them before they do significant damage to your credit score. END
 TITLE: Can You Refinance a Mortgage in Forbearance? CONTENT: How Does Mortgage Forbearance Work?\n-----------------------------------\nMortgage forbearance is a process that allows you to pause or reduce your monthly mortgage payment for a set period, which can vary based on your situation and your lender.\nWhile forbearance can give you some temporary relief, it's not the same as forgiveness: Forbearance requires you to make up the payments you missed once the forbearance period ends.\nThe Coronavirus Aid, Relief and Economic Security (CARES) Act allows homeowners with a federally backed mortgage to request forbearance for up to 18 months of total forbearance due to financial hardship.\nThe law applies to loans backed by Fannie Mae, Freddie Mac, the Federal Housing Administration (FHA), the U.S. Department of Agriculture (USDA) and U.S. Department of Veterans Affairs (VA).\nIf you request forbearance under the CARES Act, you don't need to worry about providing documentation to prove your financial need—your claim of pandemic-related hardship is enough. There are no additional fees, penalties or interest associated with the process beyond the scheduled amounts. END
 TITLE: Can You Refinance a Mortgage in Forbearance? CONTENT: How Long After Forbearance Can I Refinance?\n-------------------------------------------\nMortgage forbearance can be a good way to take precautions if you're not sure about your immediate financial future, and it may be a necessity for some homeowners who have lost their jobs or had their hours cut significantly.\nBut postponing your monthly mortgage payments could backfire if you want to refinance or even buy a new home in the near future.\nThat's because the organizations and government agencies that insure the vast majority of mortgage loans in the U.S. do not allow homeowners with a mortgage loan in forbearance to refinance that loan or even obtain a new mortgage loan while in forbearance. Previously, it was also impossible to get approved for a new loan for a full year after loan payments were current again.\nIn May, the Federal Housing Finance Agency issued guidance for borrowers with mortgages backed by Fannie Mae and Freddie Mac, reducing that timeframe. Now you can refinance your current mortgage or purchase a new home once you've made three consecutive mortgage payments, either after your forbearance plan ends or under a repayment plan or loan modification.\nSo, if you're weighing forbearance as a precaution but haven't pulled the trigger yet, consider whether you want to refinance or purchase a new home in the near future, and whether the short-term benefits of forbearance are worth the longer-term costs. END
 TITLE: Can You Refinance a Mortgage in Forbearance? CONTENT: What to Do if You're in Forbearance and Want to Refinance\n---------------------------------------------------------\nIf you're currently on a forbearance plan with your mortgage lender and hope to refinance your loan, contact your lender immediately to end the forbearance so you can start making monthly payments again.\nIf your loan is backed by Fannie Mae or Freddie Mac, which most conventional loans are, simply make your next three consecutive monthly payments on time. Once that's completed, you'll be able to start the process of refinancing your home. If you're not sure whether your home is backed by Fannie Mae or Freddie Mac, ask your lender.\nIf you have a mortgage loan that's backed by a government agency, including the FHA, USDA or VA, call your mortgage lender to see what your options are. END
 TITLE: Can You Refinance a Mortgage in Forbearance? CONTENT: How to Make Sure Your Credit is Refinance-Ready\n-----------------------------------------------\nIf you're thinking about refinancing your mortgage loan, it's crucial to have your credit in good enough shape to make the process worth it. The better your credit score, the higher your chances of scoring a lower interest rate.\nTo start, check your credit score and your credit report to determine which areas you need to address. For example, if you're behind on payments with a creditor, work on getting current as quickly as possible. This won't necessarily improve your credit score immediately, but it could prevent further damage.\nOther ways to improve your credit score include:\n*   Work to pay down credit card debt and keep your account balances low relative to their credit limits.\n*   Review your credit report for inaccuracies and dispute information you believe to be incorrect with the credit reporting agencies.\n*   If you have a family member with a strong credit history and a credit card with good payment history, ask to be added as an authorized user.\n*   Avoid applying for new credit unless absolutely necessary.\n*   Avoid closing unused credit cards.\nWhile some of these steps can provide relatively quick results—such as paying off your credit cards—others may take more time. Depending on your current situation, you may benefit from taking more time to work on your credit to ensure better terms on the new loan. END
 TITLE: Can You Refinance a Mortgage in Forbearance? CONTENT: Immediate Needs May Be More Important Than Long-term Goals\n----------------------------------------------------------\nThe coronavirus pandemic has caused many unexpected problems across the U.S. and the globe. If you're struggling financially due to unemployment, reduced hours or other hardship, mortgage forbearance may be the best solution for your immediate needs—even if it means you have to put off refinancing your home.\nTaking care of your immediate needs may cost you the chance to refinance at record-low rates, but taking advantage of generous forbearance options can prevent your situation from getting worse and help you manage other necessary expenses.\nAs you continue to work to get back on your feet financially, make it a priority to monitor your credit regularly to know where you stand, and spot potential issues that could damage your credit and make it more challenging to qualify for refinancing in the future. END
 TITLE: What Is a Short Sale? CONTENT: How Short Sales Work\n--------------------\nFor the most part, a short sale works like a typical home sale. The seller contacts a real estate agent, notifies them that they'd like to put their home on the market and waits until potential buyers start making offers.\nUnlike a traditional home-selling scenario, however, the seller will have to notify the real estate agent that it's a short sale and submit offers to their mortgage lender for approval. Since the homeowner is trying to sell the house for less than what they owe on the mortgage loan, the lender must be on board with the transaction.\nIn addition to submitting the offer to the lender, the homeowner must also submit documentation that explains why they're engaging in a short sale. In particular, the homeowner must prove that they can no longer make mortgage payments and a short sale is the best solution for both them and the lender.\nRequired documents can vary by lender. But in general, you should expect to provide income documents, such as pay stubs, W-2 forms, tax returns, bank statements and more. You may also need to provide a hardship letter or affidavit to explain why you can't make your full monthly mortgage payments.\nOnce you submit your request and documentation, the lender may order an appraisal on the home to determine whether the offer is satisfactory. That doesn't necessarily mean the lender will reject an offer below the home's market value.\nIn fact, lenders are often willing to approve short sale offers below market value to avoid the foreclosure process, which is costly and time-consuming for both the lender and the borrower. END
 TITLE: What Is a Short Sale? CONTENT: Short Sale vs. Foreclosure\n--------------------------\nWhile both a short sale and a foreclosure will free you of a mortgage you can no longer afford—and come with consequences for doing so—they differ in several fundamental ways. To start, they differ in who initiates the process: Short sales are initiated by the homeowner to get out of a mortgage and avoid foreclosure. This typically occurs when they've missed payments and owe more than the home is worth.\nForeclosure, on the other hand, is a legal process initiated by the lender when the borrower has defaulted on their mortgage loan. Regardless of how much the home is worth, lenders foreclose on homes to recoup the amount owed by taking control of the property and selling it.\nIf you're in a situation where you're weighing a short sale vs. a foreclosure, it's important to understand both the benefits and drawbacks of each. END
 TITLE: What Is a Short Sale? CONTENT: When Does a Short Sale Make Sense?\n----------------------------------\nFor a short sale to work, both the lender and the homeowner must be on board with the process and find the offer from a prospective buyer acceptable. Here's what to consider from both perspectives: END
 TITLE: What Is a Short Sale? CONTENT: Are Short Sale Home Prices Negotiable?\n--------------------------------------\nShort sale home prices are negotiable, but not in the same way as the sale price in a traditional purchase is. As the seller, you may be motivated to get rid of the property—but the mortgage lender must ultimately decide whether to accept an offer.\nNegotiable items on the home can include the price and closing costs, among other things. A short sale buyer should:\n*   Conduct a home inspection to determine the necessity and cost of repairs.\n*   Compare prices with comparable homes in the area.\n*   Be patient and understand that it can take several months for a lender to approve your offer.\n*   Provide a preapproval letter, so the lender knows the deal will go through if approved.\n*   Make a sizable earnest money deposit to further convince the lender it's a good offer.\nAlso, both sellers and buyers should also consider using real estate agents who have experience with short sales. Sometimes real estate market trends can drive down a home's value over time, so having an experienced agent can help manage expectations for an appropriate price. END
 TITLE: What Is a Short Sale? CONTENT: How Does a Short Sale Affect Your Credit?\n-----------------------------------------\nPayment history is the most important factor in your credit history, and getting behind on your mortgage payments will have an immediate and severe impact on your credit scores.\nWhile the term \"short sale\" does not appear on your credit report, the tradeline for your mortgage loan will include a \"negotiated settlement\" of your mortgage debt for less than originally owed. Anytime an account is reported that way, it will hurt your credit history and credit scores.\nThis negative item will stay on your credit report for seven years from the original delinquency date of the mortgage. If your payments were never late, the short sale will remain on your credit report seven years from the date it was reported settled or paid.\nIt's also important to note that a short sale will have a greater impact than other types of settled debts. How much it will affect your credit scores will vary based on your overall credit history. The National Foundation for Credit Counseling is a good resource if you want to seek the guidance of an expert who can help you understand all your options. END
 TITLE: What Is a Short Sale? CONTENT: Monitor Your Credit After a Short Sale\n--------------------------------------\nIf you're a homeowner going through the short sale process, it's crucial that you continue to monitor your credit score during and after you close on the home. You may not be able to prevent the damage from the short sale, but you can prevent further damage from other potential negative items and fraud.\nWith Experian's credit monitoring service, you'll get free access to your FICO® Score☉ and an updated Experian credit report every 30 days. You'll also get real-time alerts about new inquiries and accounts, which can help you stop identity theft before it wreaks havoc on your credit scores.\nWith the right tools and vigilance, you'll be able to address potential concerns quickly and effectively. END
 TITLE: Is Cash-Out Refinancing Better Than a Home Equity Loan? CONTENT: What Is a Cash-Out Refinance and How Does It Work?\n--------------------------------------------------\nA cash-out refinance is a mortgage loan that allows you to borrow some of your home equity by replacing your current mortgage with a new one. The new loan will be for more than your previous balance, and you'll get the difference in cash.\nThe process can be similar to taking out your first mortgage and may require an appraisal to determine your home's value. Generally, you can borrow up to about 80% to 85% of the home's value. However, if your loan-to-value (LTV) ratio is above 80%, you may need to pay for private mortgage insurance on your new mortgage.\nFor example, if your home is appraised for $300,000, 80% of that is $240,000. If your current mortgage balance is $200,000, you may be able to get a cash-out refi for $240,000 and receive the $40,000 in cash.\nYou'll then repay the loan based on the terms of your new mortgage. Similar to a purchase mortgage, you may be able to choose between a fixed and variable rate and often 15- to 30-year terms on your refinance.\nIdeally, you can qualify for a lower interest rate, which will also help you save money. However, closing costs could offset some of the savings. END
 TITLE: Is Cash-Out Refinancing Better Than a Home Equity Loan? CONTENT: How Does a Home Equity Loan Work?\n---------------------------------\nA home equity loan is a type of second mortgage that you can take out in addition to your primary mortgage. There are also home equity lines of credit (HELOCs), which are similar, but give you a line of credit that you can borrow against rather than the entire loan amount upfront.\nWith a home equity loan, some lenders may allow you to borrow up to 85% to 90% of your home's value based on the combined loan-to-value ratio (CLTV), which takes the balance of your first mortgage and the home equity loan into account. Continuing with the figures above, if your home is worth $300,000, 90% of that is $270,000. If your current mortgage balance is $200,000, you may be able to get a home equity loan for $70,000.\nGetting a home equity loan may be quicker if the lender doesn't require an in-person appraisal, and some lenders cover the closing costs on the loan. Home equity loans also often have fixed rates and shorter terms than primary mortgages, but you'll be making monthly payments on both your home equity loan and original mortgage. If you fall behind on either loan, the lender may be able to foreclose on your home. END
 TITLE: Is Cash-Out Refinancing Better Than a Home Equity Loan? CONTENT: Comparing a Cash-Out Refinance With a Home Equity Loan\n------------------------------------------------------\nBoth cash-out refinancing and home equity loans can help you turn the equity you've built in your home into money you can use today. Many people use these forms of financing for home repairs, maintenance or improvements, or for major expenses, such as a wedding or college costs.\nAlthough there are exceptions, here are some general differences between cash-out refinance mortgages and home equity loans:\nCash-Out Refinance\nHome Equity Loan\n**Replaces Current Mortgage**\nYes\nNo\n**Interest Rates**\nFixed or variable\nOften fixed\n**Repayment Term**\n15 to 30 years\n5 to 30 years\n**Closing Costs**\nYes\nLenders may cover the costs\n**Tax Deductible**\nIf you use the money to improve the home\nIf you use the money to improve the home\nHome equity loans tend to have higher interest rates than cash-out refinancing loans as they're second mortgages, meaning that if you fall behind on payments, the lender will only get paid after the primary mortgage holder gets what it's owed. The higher interest rate may be somewhat offset by the low or no closing costs. But read the fine print on your loan, as some lenders will cover the closing costs but then require you to repay some of the money if you pay off your home equity loan early. END
 TITLE: Is Cash-Out Refinancing Better Than a Home Equity Loan? CONTENT: Should I Use a Cash-Out Refinance or Home Equity Loan?\n------------------------------------------------------\nDeciding between cash-out refinancing and a home equity loan can depend on how much equity you've built in your home, your creditworthiness and lenders' current offers.\nIf using a cash-out refi would mean increasing your mortgage's rate or adding private mortgage insurance, then the higher monthly payment and long-term costs may not be worth it. However, if you can lock in a lower mortgage rate and get some cash out of your home at the same time, then a cash-out refi can be a win-win when you need to borrow money.\nA home equity loan might be a better option if you want to borrow a large portion of your home's value, or if you can't find a lower rate when refinancing. The monthly payments may be higher if you choose a shorter-term loan, but that also means you'll pay less interest overall. END
 TITLE: Is Cash-Out Refinancing Better Than a Home Equity Loan? CONTENT: How a Cash-Out Refinance and Home Equity Loan Affect Credit\n-----------------------------------------------------------\nOverall, the amount you owe and the impact to your credit scores may be similar with a cash-out refinance and a home equity loan. The main difference is that a cash-out refinance will lead to paying off and closing your original mortgage, while a home equity loan only will be an additional loan. However, the paid-off loan can stay on your credit report for up to 10 years and continue to impact your scores during that time.\nHome equity loans and cash-out refinancing both involve taking out a new installment loan. In either case, lenders may review your credit reports with a hard inquiry. Also, when your loan is added to your credit reports, the average age of accounts on your reports will decrease, and your loans will have a high balance relative to their original loan amount. These factors can all hurt your scores a little, but they're minor factors.\nOnce you start to repay your new loan, your on-time payments can be reported to the credit bureaus and help your credit. Having a long history of on-time payments can be especially important for improving your credit scores. END
 TITLE: Is Cash-Out Refinancing Better Than a Home Equity Loan? CONTENT: Check Your Credit Before Loan Shopping\n--------------------------------------\nIt can be easier to qualify for a secured loan than an unsecured loan, but your creditworthiness can still be an important factor in whether you'll get approved, how much you can borrow and the interest rate you're offered. You can check your credit score and credit report for free to see where you currently stand.\nSometimes, it may make sense to focus on improving your credit before taking out a large loan. However, if you're not able to wait, you may be able to get approved for refinancing or a home equity loan even if you don't have excellent credit. END
 TITLE: Is a Cash-Out Refinance a Good Idea? CONTENT: A cash-out refinance is a loan that replaces your current mortgage with a new, larger mortgage—giving you the difference in cash. To get a cash-out refinance, you'll need to have equity in your home; in other words, your home will need to be worth more than you owe on it.\nFor example, if your home is worth $300,000 and your current mortgage balance is $200,000, you have $100,000 in home equity. Because lenders don't typically allow you to borrow all that equity (equity loans are usually limited to about 80% of the home's value), you may be able to get a cash-out refi for $225,000. From the new mortgage, $200,000 will go to pay off your existing debt, and you'll receive the other $25,000 in cash.\nCash-out refinances are often used to pay for home repairs and improvements, to refinance higher-rate debts or to pay for college. Unlike a home equity loan or HELOC, where you keep your current mortgage, you'll entirely replace your current mortgage with a cash-out refi.\nThis can be a particularly enticing option if interest rates have fallen, as you can benefit by lowering your interest rate on all your current mortgage debt (and thus pay less over the life of the loan). It also may provide a cheaper source of funding than an unsecured loan such as a personal loan. END
 TITLE: Is a Cash-Out Refinance a Good Idea? CONTENT: When Does It Make Sense to Use a Cash-Out Refinance?\n----------------------------------------------------\nA cash-out refi may make sense if you have a specific reason to borrow money and can qualify for a mortgage with a better interest rate than you currently have. Here are some reasons to consider a cash-out refi:\n*   **You qualify for a lower interest rate.** Even if you're not interested in taking cash out, you may want to consider refinancing your mortgage if you can get a lower interest rate. Mortgages tend to carry high balances and have long repayment periods, so even a small interest rate drop can lead to significant savings. If you reset the repayment term to the same number of years as your previous mortgage, your monthly payment may also drop—but you could wind up paying more interest overall due to the longer term and larger debt.\n*   **You want to pay off high-rate debt.** If you have other loans or credit card debt that you're working to pay off, using a cash-out refi to get a low-rate loan and paying off your current debts could save you money. This is only a good strategy if you can commit to not running up your card balances again after paying them off.\n*   **You want to renovate or repair your home.** Planning to use the money from a cash-out refinance to repair, maintain or improve your home could be a good move, as the money can help protect (or improve) the home's value. Using the money this way may also allow you to claim a tax deduction for the interest on the cash-out portion of your mortgage.\n*   **You want to use the money to pay for college.** Low interest rates and a manageable additional monthly payment can make this an attractive option for covering tuition and other college expenses. END
 TITLE: Is a Cash-Out Refinance a Good Idea? CONTENT: The Downsides of a Cash-Out Refinance\n-------------------------------------\nCash-out refinancing can also be risky and expensive. Consider these drawbacks:\n*   **You're taking out a larger loan against your home.** Even if you can lock in a lower interest rate, taking on more debt means it may be more difficult to pay off your mortgage. In the meantime, you risk losing your home if you aren't able to afford your payments in the future.\n*   **You'll pay closing costs.** Similar to when you took out your original mortgage, the closing costs on a cash-out refi can range from about 2% to 5% of the total loan amount. While you may be able to roll these costs into your loan rather than pay for them out of pocket, they'll increase your cost of borrowing. Compare your total fees and interest on a cash-out refi to the cost you'd pay to get a loan elsewhere.\n*   **You may have to pay for private mortgage insurance.** If your cash-out refi results in the total loan being more than 80% of the home's value, you may have to pay for private mortgage insurance (PMI). The extra insurance can increase your monthly costs, but it doesn't help you—it protects the lender if you don't repay your mortgage. However, many lenders will not let you borrow more than 80% of a home's value for a cash-out refinance, so this may not be a concern.\nAs with all types of loans, there's also the risk of borrowing money to enable a lifestyle that's outside your means. This can be especially harmful if you use the money to pay off high-rate credit card debt, but then wind up maxing out your credit cards again. END
 TITLE: Is a Cash-Out Refinance a Good Idea? CONTENT: Cash-Out Refinance Alternatives\n-------------------------------\nIf you're looking to borrow money but don't want to (or can't) use a cash-out refi, consider some of the alternatives:\n*   **Personal loan**: You may be able to get an unsecured personal loan without using any of your assets as collateral. If you have excellent credit, some lenders may even offer rates similar to what you could find with a mortgage. But even if you can't qualify for the best rates, it may be worth paying a slightly higher rate for an unsecured loan.\n*   **Home equity loan or home equity line of credit (HELOC)**: With these loans, you use your home as collateral to get a loan or line of credit without having to replace your current mortgage. Like a cash-out refinance, the terms of these second mortgages also depend on the value of your home and how much equity you have, along with your creditworthiness. These options may have fewer closing costs, and they could be a better option than refinancing if you can't qualify for a lower rate on your mortgage.\n*   **Auto title loan**: Rather than using your home, you may be able to use a vehicle as collateral to get an auto title loan. However, these are generally a poor option as auto title loans can be expensive and you risk losing your vehicle. Some states don't even allow this type of loan.\n*   **Balance transfer credit card**: If you're looking into a cash-out refi as a way to consolidate and refinance your credit card debt, also consider a balance transfer credit card. While you might not be able to get a card credit limit as high as your cash-out amount, balance transfer cards may offer promotional 0% APR rates on transferred balances.\nThere are also other strategies you can use to get out of debt without taking out a new loan. For example, you could look for ways to increase your income and cut expenses and then put extra money toward your lowest-balance debts first (the debt snowball strategy). Or, with the avalanche strategy, you start with the debt that has the highest APR. END
 TITLE: Is a Cash-Out Refinance a Good Idea? CONTENT: *   **Balance transfer credit card**: If you're looking into a cash-out refi as a way to consolidate and refinance your credit card debt, also consider a balance transfer credit card. While you might not be able to get a card credit limit as high as your cash-out amount, balance transfer cards may offer promotional 0% APR rates on transferred balances. END
 TITLE: Is a Cash-Out Refinance a Good Idea? CONTENT: Check Your Credit Before Shopping for a Mortgage\n------------------------------------------------\nAs you're taking out a new mortgage, you're more likely to get approved for a cash-out refi with a good rate if you have good to excellent credit. Checking and tracking your credit could help you decide if a cash-out refi is a good idea right now, or if you want to focus on improving your credit to try at another point in the future. Experian offers free credit monitoring and score tracking, with alerts if there are any suspicious changes in your credit. END
 TITLE: What Is a Cash-Out Refinance? CONTENT: How Does a Cash-Out Refinance Work?\n-----------------------------------\nFor the most part, a cash-out refinance works similarly to a traditional mortgage refinance loan. Both processes replace your existing mortgage with a new one that may come with a new interest rate, monthly payment and more.\nThe primary difference is that a cash-out refinance loan will be larger than the remaining balance on your mortgage—allowing you to pocket the difference in cash.\nHere's how the cash-out refinance process might work. Let's say you have a $250,000 mortgage balance on a home worth $400,000. You need $20,000 to cover the cost of some home renovations, so with a cash-out refinance loan, you replace your $250,000 loan with a $270,000 loan and receive the $20,000 difference in cash.\nYou can use your funds from a cash-out refinance for just about anything you want. Some of the more common reasons include home improvements, debt consolidation and other major expenses.\nThat said, there's no guarantee you'll get the amount you want. Many lenders allow you to borrow up to 80% of your home's value. So if you have a $400,000 home, the maximum amount you could borrow with a cash-out refinance is $320,000, but you may be limited by other factors including how much equity you have in your home. END
 TITLE: What Is a Cash-Out Refinance? CONTENT: Drawbacks of a Cash-Out Refinance\n---------------------------------\nWhile doing a cash-out refinance can help you improve your financial situation, there are some potential pitfalls that can make it difficult to justify:\n*   **Collateral issues**: As cash-out refinancing uses your home's equity as collateral for the debt, you could risk losing your home to foreclosure if you struggle to make your new, higher mortgage payment.\n*   **Closing costs**: You can expect to pay between 2% and 6% of your new loan amount in closing costs, which can easily amount to several thousand dollars. The amount you'll pay to refinance will play a big role in determining whether a cash-out refinance is the smart move. Don't forget to compare the benefits with these costs to ensure it's a good fit for you.\n*   **New loan terms**: Your cash-out refinance loan may give you more or less time to repay the debt than your old mortgage did. If you opt for a longer term on your new loan, that likely means paying more interest in the long run.\n*   **Spending habits**: If you're thinking of using a cash-out refinance to consolidate credit card debt, you may be enabling poor spending habits to continue unless you have a plan to avoid racking up a new balance on your credit card accounts. END
 TITLE: What Is a Cash-Out Refinance? CONTENT: When It Makes Sense to Get a Cash-Out Refinance\n-----------------------------------------------\nA cash-out refinance may make sense if you want to leverage the equity you have in your home to improve your overall financial situation.\nFor example, using the money to pay off high-interest debt could save you money on interest charges and provide you with a little budget relief. And if you're thinking of making improvements to your home, using a low-interest cash-out refinance could make it possible to do the work and increase the value of your home.\nOther potential options include using the money to save for a child's education, bolstering your emergency fund or paying for other major expenses.\nIt may also be a good idea to get a cash-out refinance if you're getting a divorce and want to buy yourself or your ex-spouse out of the home.\nBecause of the amount of time it takes to refinance a mortgage, it may not be a great way to cover an emergency expense that needs to be taken care of immediately. END
 TITLE: What Is a Cash-Out Refinance? CONTENT: How to Qualify for a Cash-Out Refinance\n---------------------------------------\nA cash-out refinance loan generally comes with the same eligibility criteria as a traditional mortgage refinance loan.\nThe main difference is that you typically need to have more than 20% equity in your home to obtain a loan—with traditional refinance loans, your loan-to-value ratio (LTV) may not be a deal-killer unless it's close to 100%.\nIn addition to your LTV, lenders will also consider other factors, including your credit score, debt-to-income ratio, how long you've been living in your home, your job history and more.\nThis means that if your credit score has decreased since you first bought the house, you have more debt or your job situation is a bit shaky, it could make it challenging to get approved for a cash-out refinance. On the other hand, if your situation has improved, you may end up getting a better interest rate on your cash-out refinance loan than you had on your original loan.\nEvery lender has its own set of credit criteria, so work directly with lenders through the preapproval process to determine your eligibility. And while it's possible to get a cash-out refinance with bad credit, there may be additional requirements to mitigate the risk the lender is taking on. END
 TITLE: What Is a Cash-Out Refinance? CONTENT: Make Sure Your Credit Is Right Before Applying\n----------------------------------------------\nEven if you qualify for a cash-out refinance—or any other financing option—with a relatively low credit score, it may be a good idea to wait until you've had time to work on improving your credit.\nStart by checking your credit score and credit report to get an idea of where you stand and which areas you need to address. Then take the time to work on fixing some of the issues that could prevent you from scoring a lower interest rate and better terms overall.\nThe process of improving your credit score can take some time, but if your need for cash isn't urgent, taking these steps could ultimately save you more money in interest charges on your new loan. END
 TITLE: How Does a Home Equity Loan Work? CONTENT: What Is a Home Equity Loan?\n---------------------------\nSometimes called a second mortgage, a home equity loan is a lump sum of money you borrow against the equity in your home. Just as your first mortgage is secured by the property, so is the home equity loan.\nEquity is the current market value of your home minus the amount you owe on your mortgage. It grows as you pay down your mortgage and as your home increases in value. For example, a home you originally purchased for $225,000 may now be worth $300,000. Time, increasing home values in your area and other factors have added $75,000 to your home's equity. If you've paid down your mortgage by $25,000, you have an additional $25,000 in equity—or $100,000 total.\nMost lenders will let you borrow between 75% and 85% of your home's equity. So if you have $100,000 in equity, $75,000 to $85,000 may be available to you.\nHome equity loans are fixed-rate loans, meaning your loan has a fixed interest rate that won't change and you'll repay it in fixed monthly installments. Terms typically range from five to 30 years. END
 TITLE: How Does a Home Equity Loan Work? CONTENT: How Is a Home Equity Loan Different From a Home Equity Line of Credit?\n----------------------------------------------------------------------\nAn alternative to taking out a lump sum is to borrow from your home equity as you need funds. Home equity lines of credit (HELOCs) provide a revolving credit line, similar to a credit card, with a credit limit based on your accumulated equity. You can tap into it for a specific number of years, called the draw period.\nThere are some notable differences between a HELOC and a home equity loan. With a HELOC:\n*   Interest is only applied to the amount you borrow, and not to the unused portion of the credit line.\n*   Interest rates are variable, and are based on the prime rate (or other index) plus a fixed margin. If the index your rate is based on goes up or down, so, too, will the interest rate.\n*   Payments fluctuate according to the amount you owe and the interest rate.\n*   If a balance remains after the draw period, a fixed repayment period begins, which is generally 20 years.\nThe downsides to HELOCs are similar to those you'd experience with home equity loans: The debt depletes your home's equity, and you could lose your home if you miss too many payments. What makes HELOCs unique, however, is the ability to use your credit line like that of a credit card, which could result in overuse. In addition, if the interest rate rises, the debt will be more expensive than you expected. If you make only minimum payments, you may end up with a large bill at the end of the draw period, and the new payments could be uncomfortably high.\nConsequently, HELOCs are best for the things you can afford to repay quickly rather than extend out for a number of years. END
 TITLE: How Does a Home Equity Loan Work? CONTENT: Pros and Cons of a Home Equity Loan\n-----------------------------------\nThere are plenty of pros to home equity loans. For example, interest rates are often low compared with credit cards, personal loans and even many HELOCs. Depending on how much equity you have, the amount of money you have access to can be large. You could even get a tax break: According to the IRS, if you use the equity loan to substantially improve your home, you may be able to deduct the loan's interest on your taxes.\nAs long as you can easily afford the payments, taking out a home equity loan could be beneficial if it helps you pay:\n*   Uncovered medical or dental bills\n*   Home and car repairs\n*   Legal expenses\n*   Larger-than-expected tax bills\n*   Necessary travel costs\nPaying off high-interest debt such as credit cards with money from a low-rate home equity loan can also be savvy, but should be approached with caution. If the bills were from overspending and you don't solve the underlying issue, you could rack up the balances again. At the same time, you're trading unsecured debt for secured debt, putting your home at risk.\nHome equity loans do have drawbacks, however. Closing costs can run 2% to 5% of the loan, so a $100,000 home equity loan could cost you as much as $5,000. Using up your equity could keep you in debt longer, and you'll be committing to making payments over many years. If you fall behind on payments, the lender has the right to foreclose on your property.\nAlso, if your home's value drops, you'll owe more than the home is worth, which will be a problem if you need to sell it. For example, if your home is worth $300,000 but you owe $350,000, you'll take a loss rather than earning a profit you could use to help pay for your next residence. END
 TITLE: How Does a Home Equity Loan Work? CONTENT: Who Is Eligible for a Home Equity Loan?\n---------------------------------------\nWhile the equity in your home is yours to borrow, you still have to qualify for a home equity loan. Qualification requirements vary by lender, but in general you'll need a FICO® Score☉ that's at least in the mid-600s. If your score is 700 and above, you'll have a greater chance of getting a home equity loan with good terms. Most lenders will also check your credit report, looking for consistent loan and credit card payments and a lengthy history of handling a variety of accounts responsibly.\nIncome is not listed on a credit report, so the lender will separately assess your debt-to-income ratio (DTI). This is the sum total of your monthly debt payments divided by your gross income. That number should not exceed 43%, but the lower your DTI is, the better.\nYou will also need to have sufficient equity in the home: Most lenders will require at least 15% to 20%. END
 TITLE: How Does a Home Equity Loan Work? CONTENT: Home Equity Loan Alternatives\n-----------------------------\nAs helpful as home equity loans can be, it's worth looking at viable alternatives:\n*   **Take out a personal loan.** Most personal loans are unsecured, so you can avoid using your home as collateral. Although the interest rates won't be as low as they would with a home equity loan, as long as your credit scores are high, the rate may be low enough to make it worthwhile.\n*   **Find money in your budget.** If you can reduce your expenses or sell unnecessary personal property to afford what you want, you can keep your home's equity intact.\n*   **Liquidate savings and investments.** You may want to hoard the cash you've saved or funds that are growing in investment accounts, but weigh your options before you borrow against your home.\n*   **Use a HELOC.** Maybe you don't need a large lump sum but are better off with a flexible cash flow. In that case, a HELOC may be preferable since it gives you the option to borrow only what you need.\n*   **Consider cash-out refinancing.** Another option is to refinance your mortgage at a lower rate and withdraw cash at closing. The new loan will be higher than your current one since the amount you take out (plus any closing costs) will be added to the loan.\nWhen you need a big influx of cash all at once, a home equity loan can be a good resource. You'll want to get the best rate possible, which means having a credit report that's populated with positive information. Check your credit report and credit score, which you can do for free with Experian, several months before applying. If you spot fraud or inaccuracies, dispute them, and if you've missed payments or your credit utilization is too high, take the time to make changes that will help you improve your credit score. END
 TITLE: What Is a Mortgage and How Does It Work? CONTENT: When you purchase a home, a mortgage loan allows you to finance the price of the sale minus any cash you bring to the table in the form of a down payment.\nIn turn, you agree to repay the money you borrowed to the mortgage lender over 10, 15, 20 or 30 years. While you're making payments, the lender holds the deed to the home.\nThis means that if you stop making payments, the lender has the right to take possession of the house, otherwise known as foreclosure. But if you make all your payments on the loan, you'll receive the deed for the home when you pay the loan in full.\nYour monthly mortgage payment typically has three components, including:\n*   **Principal**: This figure represents the actual amount of money that you still owe on your loan.\n*   **Interest**: This is the finance charge based on the loan's annual percentage rate (APR).\n*   **Escrow account**: This involves adding your property taxes and homeowner's insurance to your monthly mortgage payment. It is usually optional, though some lenders may require it in certain situations. The extra amount is held in an escrow account until the property taxes and insurance are due, then the lender pays them out of that account.\nOne hard part of the mortgage process is running into several terms that you're not familiar with. Here are some of the more common ones, along with their definitions:\n*   **Down payment**: The cash amount you contribute to the sale. Lenders often require a down payment of at least 3% to 5% of the sale price, but many buyers aim for a 20% down payment.\n*   **Closing costs and fees**: These are paid when you finalize the sale and purchase of the home. They can vary based on location, type of loan and what type of property is involved, but typically are 2% to 5% of the purchase price. You can either pay them in cash, roll them into the loan, or ask the lender to pay them in exchange for a slightly higher interest rate.\n*   **Loan term**: How long you have to repay your loan. Usually, the length of a mortgage loan is 10, 15 or 30 years.\n*   **Property taxes**: This is the amount you pay to your local, county or state government each year based on the value of your home and property. Tax rates can vary depending on where you live.\n*   **Foreclosure**: When you fail to make payments on time, your mortgage lender has the right to take ownership of the home unless you make the necessary payments.\n*   **Private mortgage insurance (PMI)**: This insurance protects the lender in case you default on your loan obligation. It's generally required by lenders if your down payment less than 20% of the total original loan amount. END
 TITLE: What Is a Mortgage and How Does It Work? CONTENT: Types of Mortgages\n------------------\nThere are many different types of mortgages, and each can vary based on the length and amount of the loan, how the interest rate works, and whether the loan is backed by a government agency.\n### Conventional Loan\nA conventional mortgage loan is a loan that's not backed by a government program or insured by a government agency. Conventional loans include mortgages originated by banks, credit unions and mortgage lenders.\nIn some cases, conventional loans are issued by one mortgage lender and then sold to another mortgage lender who services the bulk of the loan. Your first few payments are to the mortgage lender that you closed with, and then you will receive a letter letting you know that your mortgage loan will be serviced by another lender.\n### Government-Insured Loan\nAs the name suggests, these loans are insured by a government agency, such as the Federal Housing Administration (FHA), Veterans Administration (VA) or the U.S. Department of Agriculture (USDA).\nThe government does originate these loans, however. Instead, you'll get the loan through a private lender, and it will be insured by the federal agency.\nThe only exception is the USDA Direct Housing Program, which provides loans to very low-income families. Its Guaranteed Housing Loans program, however, acts similarly to other government-insured loans.\nHere's a breakdown of some of the common government-insured loans that are available:\n*   **FHA loans**: Available to all types of home buyers. The government insures the lender against the borrower defaulting on the loan. FHA loans allow buyers to make a down payment of as low as 3.5% on the purchase price of a home.\n*   **VA loans**: A loan for military members and their families. Borrowers can purchase a home with $0 down and receive 100% financing.\n*   **USDA or RHS loans**: Mainly geared to rural borrowers who meet the income requirements from the program. These loans don't require a down payment.\n### Fixed-Rate Mortgage\nFixed-rate mortgage loans are very popular and typically come with repayment terms of 15, 20 or 30 years. They have the same interest rate for the entire loan term, which means the principal and interest portion of the monthly payment will stay the same throughout the life of the loan.\n### Adjustable-Rate Mortgage\nAdjustable-rate mortgage (ARM) loans have an interest rate that will change or adjust from the initial rate. For example, a 5\/1 ARM loan will have a fixed interest rate for the first five years, then adjust every year based on the current market rates.\nARMs can be popular because they tend to come with a lower interest rate compared with a fixed-rate mortgage, at least initially; the risk with ARMs is that rates can rise dramatically over time.\n### Conforming Loan\nA conforming loan is a home loan that conforms to limits set by the Federal Housing Finance Agency (FHFA) and meets the funding criteria of Fannie Mae and Freddie Mac, government-sponsored enterprises that purchase mortgages from lenders, providing stability to the housing market. The FHFA's 2019 limits for conforming loans include $484,350 or less in 48 states and $726,525 or less for Alaska and Hawaii.\nBecause conforming loans meet the guidelines set by Fannie Mae and Freddie Mac, they typically offer lower interest rates and better overall terms than non-conforming loans.\n### Non-Conforming Loan\nAlso called a jumbo loan, a non-conforming loan is a mortgage loan where buyers borrow an amount greater than the conforming mortgage loan limit. END
 TITLE: What Is a Mortgage and How Does It Work? CONTENT: How to Qualify for a Mortgage\n-----------------------------\nTo get a mortgage, you can apply with a bank, credit union, online lender or mortgage broker. A mortgage preapproval is determined by a lender to indicate the amount you can borrow, the type of loan, and the interest rate that you would likely qualify for.\nA mortgage preapproval is not actual approval; it's just a document that says the lender believes that it would likely approve a mortgage application based on the income and credit information submitted. The information needed for a home mortgage preapproval typically includes personal information such as your credit history, credit score, income, assets, debts, tax returns and employment history.\nHere are some factors lenders will evaluate when considering a mortgage application.\n### Credit Scores\nMost lenders use FICO® Scores☉ to determine mortgage creditworthiness. There's no hard-and-fast rule for what your credit scores need to be to get approved for a mortgage. Some mortgage types, however, may have minimums.\nFor example, if you want to qualify for an FHA-insured mortgage, you will typically need a FICO® Score of 580 or higher. Conventional loans typically require a score of 620 or higher, but some lenders may set a higher bar.\nAlso, lenders that offer VA and USDA loans may have a set minimum, even though those agencies don't have a minimum score.\nAgain, the higher your credit scores, the better your chances of getting a mortgage with a low interest rate.\nAt this writing, the average mortgage interest rates by FICO® Score for a $216,000 home with a 30-year fixed-rate mortgage can vary in range from 4.13% to 5.71%. These interest rates change daily, so make sure to research the latest interest rates.\nIf your FICO® Score is...\nYour interest rate is...\nAnd your monthly payment will be...\n760-850\n4.13%\n$1,047\n700-759\n4.35%\n$1,075\n680-699\n4.52%\n$1,098\n660-679\n4.74%\n$1,125\n640-659\n5.17%\n$1,182\n620-639\n5.71%\n$1,256\n### Debt-to-Income Ratio\nMortgage lenders' primary concern is that you pay back what you owe, which can be tough if you're overburdened with debt. Your debt-to-income ratio shows how much of your gross monthly income goes toward debt payments.\nLenders typically like to see no more than 28% of your gross monthly income go toward a housing payment and no more than 36% toward all of your monthly debt payments combined.\n### Down Payment\nThe more money you put down, the less money you need to borrow, which reduces the risk the lender takes on. What's more, a higher down payment typically means that you have more skin in the game, so to speak, and you're less likely to default.\nIf you make a down payment on a mortgage that is less than 20%, you typically need to buy mortgage insurance to protect the lender against default. There are two main types of mortgage insurance:\n*   **Private mortgage insurance (PMI)**: Paid to an insurance company on a monthly basis, PMI is common with conventional and jumbo loans. You're only required to pay PMI until your loan-to-value ratio is lower than 80%.\n*   **Mortgage insurance premium (MIP)**: If you have an FHA-insured mortgage, you're typically required to pay MIP, both upfront and ongoing. In some cases, you'll need to pay MIP for the life of the loan.\n### Past Payment History\nIf you have a history of making payments late or allowing accounts to become delinquent, you may have a tough time getting approved for a mortgage loan. END
 TITLE: What Is a Mortgage and How Does It Work? CONTENT: How Much Should I Save for a Down Payment?\n------------------------------------------\nYour down payment directly reduces the amount you owe on your mortgage loan. Many mortgage lenders will require a down payment of between 3% to 5%, but 20% or more is ideal.  \nThe more money you put down for a mortgage down payment, the lower the loan amount you'll need and the less interest you'll pay over the life of the loan.\nFor example, if you buy a house for $200,000 on a 30-year loan with a 5% interest:\n*   A down payment of 3% means that you pay $6,000 and then borrow $194,000.\n    *   Monthly Payments = $1,041.43\n    *   Total Principal Paid = $194,000\n    *   Total Interest Paid = $180,916.22\n    *   Total Cost of Loan = $374,916.22\n*   A down payment of 20% means that you pay the bank $40,000 and borrow $160,000.\n    *   Monthly Payments = $858.91\n    *   Total Principal Paid = $160,000\n    *   Total Interest Paid = $149,209.25\n    *   Total Cost of Loan = $309,209.25\n    *   Savings = $66,706 END
 TITLE: What Is a Mortgage and How Does It Work? CONTENT: Finding the Right Mortgage Lender\n---------------------------------\nThe right mortgage lender will not only give you the best terms available for your situation, but it may give you a specific loan feature that would make for a better experience. Here are some tips to help find the best mortgage lender for your situation.\n### 1\\. Know Your Credit Scores\nSome lenders prefer to work with borrowers with near-perfect credit scores, while others are willing to work with borrowers who have lower credit scores. Checking your FICO® Score is a smart first step, so you can understand which lenders to focus on.\n### 2\\. Find the Right Mortgage\nSome lenders specialize in certain types of loans, and some even offer specialty loans that you can't get anywhere else. Knowing what type of loan you need will help you focus your search.\n### 3\\. Shop Different Lenders\nTake some time to shop around to get an idea of what's out there. Asking family, friends and colleagues for recommendations is a good first step. You may also want to check your bank or credit union to see what deals they might be offering. And make sure to ask questions such as what is their loan specialty, as well as how long it takes to get a preapproval or close a loan.\n### 4\\. Get a Few Loan Estimates\nCompare offers by applying to at least three different lenders to help you find the best deal. The more lenders you get rates from, the likelier you are to get the lowest rate available for your financial and credit profiles.\n### 5\\. Consider a Digital Mortgage\nA digital mortgage can make getting a home loan fast and easy, as most of the interaction takes place over the phone, a self-service portal and via email. END
 TITLE: What Is a Mortgage and How Does It Work? CONTENT: Take Your Time to Do Things Right\n---------------------------------\nA mortgage loan is an incredible commitment, so it's important to take your time during the process. It can be easy to get caught up in the emotions of homeownership and getting your dream home. But understanding how the mortgage process works and what's best for your situation can potentially save you thousands of dollars over the years. END
 TITLE: Should I Do a Cash-Out Refinance to Pay Off Debt? CONTENT: What Is a Cash-Out Refinance?\n-----------------------------\nA mortgage refinance loan allows you to replace your current mortgage loan with a new one. Many people refinance their mortgage loan to get a lower interest rate and monthly payment. But as the principal amount of your loan goes down and the value of your home appreciates, a cash-out refinance also allows you to tap some of the equity you've built.\nFor example, let's say you currently have a $250,000 mortgage balance on a home worth $400,000. Many lenders will let you borrow up to 80% of the home's value, so you could potentially refinance your loan for up to $320,000.\nThe difference between the new loan amount and the original loan balance is what you'd receive in cash. You can use that money for just about anything you want, including:\n*   Debt consolidation\n*   Home improvements\n*   Emergency expenses\n*   Retirement savings\n*   Education savings\n*   Other major expenses\nJust because you own a home, though, it doesn't mean you're eligible for a cash-out refinance. For starters, you'll need to have enough equity in your home to meet lender requirements—such as the 80% loan-to-value ratio.\nLenders will also consider several other factors, including your credit score, credit report items, debt-to-income ratio, income, job security and more.\nIt's possible to get a cash-out refinance with bad credit, but not all lenders specialize in working with subprime borrowers, and you may need to meet other eligibility criteria to qualify for a loan. END
 TITLE: Should I Do a Cash-Out Refinance to Pay Off Debt? CONTENT: Risks of Using a Cash-Out Refinance for Debt\n--------------------------------------------\nOne of the primary reasons to consider using a cash-out refinance to consolidate high-interest debt is that you can typically get a much lower interest rate on a mortgage loan than you can with credit cards, personal loans and other expensive credit options.\nHowever, there are some potential pitfalls that can have a significant impact on your financial well-being:\n*   **Threat to your home**: When using a cash-out refinance to consolidate other debts, you're essentially converting unsecured debt to secured debt. Your monthly mortgage payment will go up, and if you can't make your payments, you could risk default and foreclosure. In contrast, defaulting on a credit card or personal loan may harm your credit, but it won't cause you to lose your home.\n*   **Closing costs**: The fees involved in refinancing a mortgage loan can amount to 2% to 6% of the loan amount. You can typically choose to pay those costs upfront or roll them into the new loan. If you pay upfront, the savings you gain from consolidating high-interest debt will need to be more than the closing costs. If you roll them into the loan, it could reduce how much you qualify for. What's more, you'd end up paying interest on the closing costs for as long as you have the loan.\n*   **Impact on your credit score**: Mortgage lenders run a hard credit inquiry on your credit reports during the application process, which can knock a few points off your credit score. Also, adding a brand-new loan to your credit report will lower the average age of accounts, which could also negatively impact your credit score.\nAs you consider your options, it's important to weigh both the pros and cons to determine the right fit for you. Take some time to run the numbers to ensure it's the best move for your situation. END
 TITLE: Should I Do a Cash-Out Refinance to Pay Off Debt? CONTENT: Alternative Ways to Pay Off Debt\n--------------------------------\nIf you're not sure about using a cash-out refinance to get out of debt with other lenders, here are some alternatives to consider:\n*   **Debt consolidation loan**: You can use a personal loan to consolidate and pay off other high-interest balances. While the process is similar to using a cash-out refinance loan, personal loans are typically unsecured, so you don't have to worry about losing your home if you default.\n*   **Balance transfer credit card**: If you have credit card debt, you may be able to apply for a new card with an introductory 0% APR promotion and transfer that debt to the new card. A balance transfer card can be incredibly appealing because it can allow you to eliminate debt interest-free—as long as you pay off the transferred debt before the introductory 0% APR ends. Also keep in mind that you'll usually pay a 3% to 5% fee of any amount you transfer.\n*   **Ask for a lower interest rate**: If you have good credit and you've always had a positive payment history on your credit card accounts, call your credit card issuers and ask for a lower interest rate. If you're eligible, it could save you money on interest and make it possible to become debt-free sooner.\n*   **Use the debt snowball or avalanche payoff method**: The debt snowball method involves paying the minimum amount on all of your debts but focusing on paying more toward the debt with the smallest balance first. Once you've paid off that account, apply its payment amount as an extra payment to your next-smallest balance and continue that process until your last debt is gone. Another way to accelerate your debt payoff is using the debt avalanche method, which targets your balance with the highest interest rate first and usually saves you the most money over time. END
 TITLE: Should I Do a Cash-Out Refinance to Pay Off Debt? CONTENT: Make Sure Your Credit Is Right First\n------------------------------------\nWhether you choose a cash-out refinance, debt consolidation loan, balance transfer credit card or any other option, it's important to ensure your credit is in good shape.\nCheck your credit score to see where it stands, and look for areas that need improvement. You may also choose to review your credit report for more context, and also look for potentially inaccurate information that could be impacting your credit score negatively.\nIf your credit isn't where you want it to be, take steps to improve your credit score before you apply for a new loan. This process can take some time, but the benefit of getting a lower interest rate could save you hundreds or even thousands of dollars. END
 TITLE: Can I Build Credit By Renting a Car? CONTENT: How Renting a Car Can Impact Your Credit Score\n----------------------------------------------\nWhen you rent a car, you're taking a valuable asset from the rental agency's parking lot. The agency wants some assurance that you can afford to pay your bills—for the rental and for possible additional expenses if you get in an accident.\nFor this reason, rental agencies tend to be wary of consumers who rent a car with a debit card rather than a credit card, and they may want to review your credit before allowing you to rent a vehicle using a debit card. The credit review can result in a hard inquiry, which could lower your credit scores. Fortunately, the impact of a single new hard inquiry is often small and short-lived.\nAnother way renting a car could impact your credit is if you wind up owing the rental company money. Perhaps you return the vehicle and pay for the rental, but lose your card later in the day. The company could have trouble charging you for incidental fees, such as for cleaning or damage to the vehicle. If the bill goes unpaid for long enough, the rental agency may send it to collections. The collection department or agency may report your collection account to the credit bureaus, which could hurt your credit scores. END
 TITLE: Can I Build Credit By Renting a Car? CONTENT: Tips on Renting a Car Without a Credit Card\n-------------------------------------------\nRenting a car without a credit card can be a little tricky. Some agencies don't accept debit cards or cash at all, and those that accept debit cards may run your credit. Additionally, if you use a debit card, rental car agencies will often place a hold on money that's in your checking account, and it could take a couple of weeks for the hold to be released.\nUsing a credit card to rent a car could be a better option, because rental car agencies don't generally require a credit check if you pay this way. Also, if they place a hold on funds, it could decrease your available credit limit but won't leave you with less cash in your bank account.\nIf you want to use a debit card:\n*   Call ahead to make sure the specific location accepts debit cards.\n*   Ask if the company will place a hold on money in your account, and if they will, make sure you have enough money for the hold, your trip and your other bills.\n*   Ask if there will be any restrictions. For example, some companies might not let you rent a luxury vehicle with a debit card.\n*   Look for car rental agencies that don't require a credit check.\nIf you have a credit card available but don't want to pay for the rental with it, another option may be to put your credit card on file when you first get the car. Then, when you return it, change your payment method to your debit card. END
 TITLE: Can I Build Credit By Renting a Car? CONTENT: What Credit Score Do You Need to Rent a Car?\n--------------------------------------------\nRental car agencies generally don't list a specific credit score requirement for renting a vehicle, even if they have a minimum score requirement. Additionally, they may look for certain red flags within a renter's credit history regardless of credit scores—for example, if you have several accounts that are currently delinquent.\nYou may want to review your credit reports ahead of an upcoming trip to look for derogatory marks that could make it difficult to rent a car with a debit card. You can request a free copy of your credit report from each of the major credit bureaus—Experian, Equifax and TransUnion—once every 12 months from AnnualCreditReport.com, or get a free copy of your Experian credit report every 30 days. END
 TITLE: Can I Build Credit By Renting a Car? CONTENT: Learn How to Build Your Credit\n------------------------------\nWhile renting a car won't help you build credit, there are many other ways to get started. If you're brand new to credit or rebuilding your credit, a secured credit card or credit-builder loan may be a good stepping stone. For those who already have open and active accounts, making on-time payments and keeping credit card balances low could help you improve your credit over time. END
 TITLE: Should Married Couples Have Joint Checking Accounts? CONTENT: What Is a Joint Checking Account?\n---------------------------------\nA joint checking account is exactly what it sounds like: a checking account that belongs to more than one person—in this case, a married couple. Either person can add money to the account, withdraw from it or use it to make purchases.\nThe type of joint accounts most married people open qualifies them as equal co-owners in the eyes of the law, which means each person is entitled to half the money regardless of how much they've contributed. At any time, either account holder can withdraw up to 100% of the funds and can close the account without the approval of the other party. If one spouse dies, the account may also stipulate survivorship rights that pass the balance of the account to the surviving account holder without going through probate. For these reasons—and many others—opening a joint checking account is an act of trust.\nEach account holder is insured up to $250,000 by the FDIC or NCUA, meaning your joint account carries twice the coverage of an individual account. END
 TITLE: Should Married Couples Have Joint Checking Accounts? CONTENT: Benefits of a Joint Checking Account\n------------------------------------\nIf you're going to share a life, joint checking can make managing money simpler. You don't have to take turns buying dinner or groceries. You don't have to open an app to square up on shared expenses. And you can easily save toward large purchases—or for the unexpected.\nWhether you use it to manage all of your cash or limit its scope to a defined set of household expenses, a joint checking account offers these benefits:\n*   **Transparency**: Everyone sees where the money is coming from and where it goes.\n*   **Trust**: Shared responsibility and common goals are the stuff great marriages are made of.\n*   **Clarity**: You'll know what your household income and expenses are, month by month. A joint account also offers a ready snapshot of your whole financial life.\n*   **Unity**: A joint account is an asset you create together. It's your purchasing power, your family fortune. You aren't in this alone. END
 TITLE: Should Married Couples Have Joint Checking Accounts? CONTENT: Downsides of a Joint Checking Account\n-------------------------------------\nJoint checking accounts can also create—or highlight—financial problems. Before signing up, consider the following:\n**Coordination is hard.** With a joint account, either party can withdraw money at any time. This is a problem if your partner is the type to run off to Las Vegas with all of the money, never to be heard from again. But it's also problematic if either partner is careless. Overdrafts can easily happen, as can late deposits, crossed wires, simultaneous spending—the list of potential issues is long.\n**You're on the hook for each other.** If one of you overdraws the account, you are both on the hook for fees. If one of you owes money, a creditor can go after your joint funds. If one of you spends the money that was earmarked to pay the mortgage or a credit card bill, the late charges and possible delinquency could affect your credit.\nWhen deciding whether to open a joint account, consider the potential downsides to your marriage as well as the financial downsides. It's a fact that money can be a major source of tension in relationships, and if you think the stress of maintaining a joint account will outweigh its benefits or jeopardize your marriage, maybe it's best to avoid one. END
 TITLE: Should Married Couples Have Joint Checking Accounts? CONTENT: Can a Joint Checking Account Affect Credit?\n-------------------------------------------\nChecking account balances don't appear on your credit report and checking accounts do not directly factor into your credit score. So, unless your joint account results in missed payments or unpaid debts, keeping a joint account won't affect your credit.\nThat doesn't mean credit isn't a consideration when you're thinking about opening an account with your spouse. As joint account holders, making good financial choices and maintaining a problem-free account is consistent with being financially responsible and creditworthy. And any problems you do have with your account—including overdrafts or involuntary account closure—will be reported to ChexSystems, a banking reporting agency, and could affect your ability to get a bank account in the future. END
 TITLE: Should Married Couples Have Joint Checking Accounts? CONTENT: Tips for Maintaining a Healthy Joint Checking Account\n-----------------------------------------------------\nStill deciding whether to take the plunge? Here are a few tips on healthy joint account maintenance:\n*   **Consider keeping your individual accounts.** It's certainly possible to manage all of your income and expenses through a single joint account, but it may be less aggravating to maintain individual accounts as well. You won't have to monitor each other's every trip to Starbucks, and you'll each maintain a sense of autonomy.\n*   **Define your parameters.** You don't have to funnel every dollar into your joint account. Figure out what your monthly joint expenses are, add in a few dollars as a cushion and decide how much each of you will contribute.\n*   **Develop clear rules and roles.** Although the money belongs to both of you, having one designated account manager may save you some trouble. Decide who will be spending from this account and how, then agree that the other person will only do transactions after consulting with the account manager in advance. That way, one person is responsible for knowing what's happening with the account. You can take turns being account manager, if that seems more fair. END
 TITLE: Should Married Couples Have Joint Checking Accounts? CONTENT: Let This Experience Lead the Way\n--------------------------------\nA joint checking account is a big symbolic step toward financial interdependence. Let your success serve as a foundation. Your financial life will likely include many other types of financial products and services—savings, credit cards, home loans, retirement and investments. By learning to communicate, collaborate and make good joint decisions about money, you're building toward a successful financial future.\nTo help protect your accounts and your whole financial life, consider both signing up for free credit monitoring through Experian. Experian will monitor the web for any of your personal information that may have fallen into the hands of an identity thief and alert you if anything is found. END
 TITLE: Are You Saying “I Do” to Your Spouse’s Bad Credit? CONTENT: What Happens to Your Credit When You Get Married?\n-------------------------------------------------\nThere is no such thing as a merged credit report. After marriage, your credit report will remain yours and vice versa for your spouse. If you applied for a credit card or loan before you were married, the lender granted the account to you, and ownership doesn't change. Therefore, the lender will continue to send the account's activity to your credit report only. The same goes for credit problems, such as debts that were referred to collection agencies, judgments, liens and bankruptcies. They will never leap from your spouse's credit report to yours.\nHowever, this doesn't mean that you will be totally immune from the fallout if your partner has a poor credit history. If you apply for credit products as a couple, your spouse's dings can dent your plans.\nFor example, a home purchase might be in your future, but if you're financing it as a couple, the lender will take each of your financial and credit situations into consideration. Your spouse's low credit scores will either result in a higher interest rate (which can increase the cost of the loan by tens of thousands of dollars) or prevent you from qualifying altogether. To get around this problem, you can apply for the mortgage in your name only, but then your spouse's income won't be factored in. The interest rate you get might be attractive, but the loan amount might fall short of what you need to buy the property.\nIf you open credit cards and other loans together, they will be listed on each of your credit reports as jointly held accounts. Ownership will be shared, and the two of you will be considered equal partners. If one of you fails to pay the bill, the other needs to step up and get it in on time. If you don't, both of your credit reports will be hit with a late payment—and that will hurt both of your credit scores.\nAnother circumstance where a credit card may appear on multiple credit reports is when one of you gives permission for the other to be an authorized user. The authorized user will have a credit card imprinted with his or her name and can make charges. The account will show up on both of your files, but ownership remains with the primary account holder. If either of you wanted to end the arrangement, you could, and at that stage the account would no longer be listed on the authorized user's credit report. END
 TITLE: Are You Saying “I Do” to Your Spouse’s Bad Credit? CONTENT: What About Debt?\n----------------\nGood news: If your spouse entered into the marriage with debt, it will not end up in your legal lap. Of course, it might be a wise idea to deal with a big balance no matter who ran it up because high debt affects credit utilization, which is a major credit scoring factor. It also impacts the amount of disposable income the two of you have to cover bills, enjoy life and save for the future.\nNot so good news: What happens during the marriage is a different story. If you live in a state with community property laws—Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin and Alaska (where you have the option to opt in for community property rules)—and you end up divorcing, financial obligations are typically shared between the two of you. That means you might have to pay for a debt that you didn't accrue, agree to or even know about. The other states have common law property rules, so if you live in one of them, debts that were incurred by one spouse remain that person's liability. The exception is if the balance was for the family's essential expenses. END
 TITLE: Are You Saying “I Do” to Your Spouse’s Bad Credit? CONTENT: How to Help Your Spouse With Bad Credit\n---------------------------------------\nNow breathe: Bad credit is not the end of the world. With effort and time, you and your spouse can develop a positive credit history and scoring difference. Here's how:\n*   **Identify the damage.** Pull your individual credit reports for free, and show them to each other. Your spouse may have some regrettable data showing up, but you, too, could have some problems that need addressing. Be candid and understanding.\n*   **Get to the root of the problem.** Find out the underlying reasons for your spouse's bad credit. You'll want to know if it was due to overspending, not planning for emergencies or some other issue. Once you know it, you both can work to change it.\n*   **Develop a plan of action.** If you discover a slew of collection accounts, pay them off one by one. If late payments are driving credit scores down, make sure they're paid on time, starting now. Aim to reduce credit card balances to less than 30% of the credit line to reduce your credit utilization. Help and support each other.\n*   **Review progress regularly.** Choose a day of the month, like the first or the 15th, to sit down and check in with each other. Every few months, view your credit reports to see how you're doing.\n*   **Consider making your spouse an authorized user.** If you have a credit card that's in excellent standing, you might want to share the love by making your partner an authorized user. Then, not only will that well-managed account be helping your own credit rating rise, it will also give your spouse's credit a push upwards.\nFinally, remember that time heals credit wounds. Whether your spouse's credit report is riddled with delinquencies, shows a bankruptcy, or contains any other true but unattractive data, you can take comfort in the ever-ticking clock. Negative information eventually ages off. As long as you do all the right things from this point forward, together you'll be in a far better position than you are today. END
 TITLE: How Can I Stop My Car From Being Repossessed? CONTENT: How Does Car Repossession Work?\n-------------------------------\nWhen you finance a vehicle, the lender owns the car and maintains the title until you've paid off the loan in full. If your loan goes into default, the lender may seize the vehicle and sell it at auction to recoup some or all of the amount you owe. And if the lender sells the car for less than what you owe, you may be required to pay the difference.\nThe timeline between when you miss your first payment and when you're considered to be in default can vary from lender to lender. With some, it can take months, while with others, it can happen as soon as you're 30 days past due. Your loan contract should provide information about how your lender defines default, so be sure you understand it if you're worried you may default on the loan.\nRepossession laws vary by state, so if you believe there's a possibility your car will be repossessed, familiarize yourself with your state's laws surrounding the process. END
 TITLE: How Can I Stop My Car From Being Repossessed? CONTENT: How to Avoid Repossession\n-------------------------\nHaving a car repossessed can have a devastating impact on your finances. If you commute, for example, it can make it difficult to get to your job. The damage to your credit score can also make it challenging to qualify for credit in the future.\nAs a result, it's crucial that you understand the different ways you can avoid repossession. END
 TITLE: How Can I Stop My Car From Being Repossessed? CONTENT: What Are Your Rights When It Comes to Repossession?\n---------------------------------------------------\nMost states allow a lender to seize a vehicle at any time without notice, as long as it doesn't do it forcibly, through the threat of force or by removing it from a closed garage without permission.\nSome states require lenders to give you the time and place of the auction where they plan to sell the vehicle, so you can potentially buy it back. Depending on where you live, you may also have the right to reinstate your auto loan by getting caught up on past-due payments and paying the lender's repossession fees.\nMake sure you understand your rights in your state when it comes to vehicle repossession. If a lender or the company it hires to complete the seizure violates your rights, the lender may be required to pay a penalty and compensate you for property damage or bodily injury. It may also work in your favor as a legal defense if the lender tries to sue you for the deficiency amount. END
 TITLE: How Can I Stop My Car From Being Repossessed? CONTENT: How Does a Repossession Affect Your Credit?\n-------------------------------------------\nRepossession is an indicator that you didn't pay your auto loan as agreed, and thus can have a significant negative impact on your credit score.\nA repossession can remain on your credit report for up to seven years from the original delinquency date. In addition to the repossession, other negative items may be added to your credit report, including the late payments that led to the repossession, default and more.\nIf there is a deficiency balance (the difference between what you owed on the car and what the lender was able to get for it at auction) and you can't pay it, that amount may be sent to a collection agency, which can damage your credit score further.\nA lower credit score could result in denial of credit, higher interest payments on loans and credit cards, higher auto and homeowners insurance rates, and more. As such, if you can manage to avoid a repossession, you'll also avoid a lot of potential financial difficulties in the future. END
 TITLE: How Can I Stop My Car From Being Repossessed? CONTENT: Monitor Your Credit to Maintain a Good Credit Score\n---------------------------------------------------\nWhether or not you've already missed a car payment, it's a good idea to monitor your credit regularly to understand where it stands and how you can improve it. With Experian's free credit monitoring service, you can view your FICO® Score☉ and Experian credit report for free.\nYou'll also get real-time updates about your current accounts and any new credit inquiries and accounts. If you do miss a payment or you're in default, monitoring your credit can also help as you work to rebuild your credit score. This process can take time, but tracking your progress can help you stay motivated and show you the areas of your credit file that you need to address. END
 TITLE: How Does a Repossession Affect Your Credit? CONTENT: What Is an Auto Repossession?\n-----------------------------\nWhen you finance a car, your lender retains a security interest: They hold title to the car until the loan is paid off. Under the terms of your loan contract, your lender can take possession of your car if you fail to make your monthly payments as agreed and default on the loan. Your loan contract spells out exactly when default occurs but, practically speaking, most banks and credit unions won't start the repossession process until at least 60 days have elapsed since your payment was due.\nDifferent states have different laws regarding repossession. Check with your state attorney general's office to learn about the laws that apply in your area. Many states require lenders to notify you in advance if your vehicle is about to be repossessed. And many don't allow lenders to \"breach the peace\" when taking your vehicle: They can't damage property or use physical force. You are also entitled to any personal property left in the vehicle.\nThe lender has a right to keep or sell your car, but typically they'll sell it and apply the money they get to your outstanding loan balance. If your car does not sell for enough money to cover your debt and the cost of towing, storage and any other fees or expenses that have accrued, you will owe the difference—known as a deficiency balance. END
 TITLE: How Does a Repossession Affect Your Credit? CONTENT: What Happens to Your Credit Score After a Repossession?\n-------------------------------------------------------\nA repossession will have a serious impact on your credit score for as long as it stays on your credit report—usually seven years, starting on the date the loan stopped being paid. But in addition to the repossession being noted, this process often includes the following \"dings\" to your credit:\n*   **Late payments**: For every month you miss a payment, there's a negative item on your report.\n*   **Defaults**: Entering loan default is its own negative event.\n*   **Collections**: If you are unable to pay off a deficiency balance, your account may be sent to collections, which will also be noted on your credit report and hurt your credit score.\n*   **Court judgments**: Unsuccessful collections may result in a court judgment.\nCredit scoring is complex, so it's impossible to pinpoint exactly how many points your credit score will drop in the event of a repossession. But, given the multiple hits to your credit and the fact that payment history is the single most influential factor in calculating your credit score—accounting for 35% of your FICO® Score☉ —the impact will be substantial. Each of the items listed above stays on your record for seven years, although their impact lessens as time goes by.\nDamage to your credit can make it more difficult for you to secure loans and credit going forward. That's a particular challenge if you need to replace your repossessed car with another financed vehicle. You may be able to get a car loan after a repossession, but expect to have a harder time finding a lender and be ready to pay higher interest on the loan. END
 TITLE: How Does a Repossession Affect Your Credit? CONTENT: How to Avoid Vehicle Repossession\n---------------------------------\nIt's far better to avoid repossession than to deal with its aftermath. The most important step you can take if you're worried about—or are in the midst of—a repossession is to communicate with your lender. As soon as you realize you're going to have trouble making your car payment, take a few proactive steps. Try to figure out why this is happening and how you might resolve your difficulties:\n*   Is this a one-time event or a recurring problem?\n*   Do you have the money to bring your loan current? Can you make the remaining payments on time?\n*   Would it help to skip a payment or two?\n*   Would it be better to restructure and get lower payments for the remainder of your loan?\n*   Should you consider ending your loan contract?\nThe sooner you call your lender, the better your chances of negotiating a deal that minimizes damage to your credit and your finances. A temporary cash flow issue might be resolved with a deferment, which allows you to skip one or two monthly payments without triggering a default or repossession. You'll still be on the hook for the money, but the payments—including interest—are added on to the end of your loan.\nIf your credit is still good and you can demonstrate the ability to make future payments, you may be able to negotiate a modified payment plan for the remainder of your loan. Any change to your original loan agreement—including a deferment or a new payment plan—should be documented in writing to avoid confusion over skipped or modified payments in the future.\nHere are few additional alternatives to consider:\n*   **Sell your car.** If you simply can't afford your car payments anymore, one option is to sell your car, preferably before late payments become a repeat issue. You may be able to raise enough money to pay off your loan entirely, and have money left over to put toward a new, less expensive car. Even if you don't get enough to cover your loan balance, you may recover more money than your lender would if your car was sold at auction, while also saving yourself the cost and trouble of a repossession.\n*   **Refinance your loan.** While your credit is good, you may be able to refinance your loan balance with another lender. Lower interest rates or a longer repayment term could help make the remainder of your loan more manageable.\n*   **Consider a voluntary surrender.** If giving up your car is unavoidable, you may want to voluntarily give your car over to the lender. A voluntary surrender still shows up on your credit report, with nearly the negative impact of an involuntary repossession, but it may allow you to salvage your pride and a bit of good grace from your lender. You may also save a few dollars by not requiring the services of a tow truck. END
 TITLE: How Does a Repossession Affect Your Credit? CONTENT: How to Improve Your Credit After Repossession\n---------------------------------------------\nRebuilding your credit after a repossession takes time. In most cases, it's a matter of paying down debt, paying balances off on time and being conservative about taking out new loans or credit. As the repossession becomes more distant, its impact will decrease: Credit scoring models tend to favor new information over old.\nMonitoring your free FICO® Score and credit report regularly can help you keep track of your progress. Your repossession and any late payments and collections that went with it will be automatically deleted after seven years. At that point, they will no longer affect your credit score. END
 TITLE: How Do Credit Card Companies Investigate Fraud? CONTENT: The Two Types of Credit Card Fraud\n----------------------------------\nCredit card fraud is when someone uses your credit card or account information to make purchases without your permission. It generally gets broken into two categories.\n*   **In-person fraud**, or card-present fraud, is when someone steals your card, creates a counterfeit card with your account information or otherwise uses your account information for an unauthorized transaction while they're at a merchant.\n*   **Remote fraud**, or card-not-present fraud, is any other situation when someone fraudulently uses your credit card account to make a purchase, such as shopping online.\nOnce you report an unauthorized transaction, the credit card company may work with you to confirm it's a case of credit card fraud rather than a simple mistake. For example, a merchant overcharging for a purchase you made or failing to deliver a product is not necessarily credit card fraud. You may be able to initiate a chargeback and get refunded—but you wouldn't go through your card issuer's fraud channels to do so.\nIf you are a victim of credit card fraud, the federal Fair Credit Billing Act (FCBA) limits your liability to no more than $50 for unauthorized charges. However, American Express, Discover, Mastercard and Visa go one step further and bring that liability down to $0 on consumer credit cards. END
 TITLE: How Do Credit Card Companies Investigate Fraud? CONTENT: How Card Issuers Investigate Fraudulent Charges\n-----------------------------------------------\nOnce a suspected fraud transaction is noticed, your credit card issuer may cancel your card, send you a replacement and start a fraud investigation. It may also refund the amount back to your account. Even if it doesn't immediately issue a refund, you're not responsible for disputed amounts during the investigation.\nA credit card fraud investigation could take up to 90 days, during which time the credit card issuer may contact the merchant that charged your card to get more details about the transaction. The card issuer may request copies of a police report or receipts to compare signatures if they're available.\nCard issuers and merchants may also look for \"friendly fraud,\" which is when a cardholder makes a purchase and then disputes it as fraud—even though it wasn't.\nIf fraud has occurred, the outcome of the investigation will also help the merchant and credit card issuer settle who is responsible for covering the fraudulent purchase (the actual fraudster may be long gone). Either way, you won't pay anything if your card's payment network provides $0 fraud liability. END
 TITLE: How Do Credit Card Companies Investigate Fraud? CONTENT: What Fraud Protection Features Do Credit Cards Provide?\n-------------------------------------------------------\nPreventing credit card fraud can help save merchants and credit card issuers money, build trust among cardholders and keep you from having to wait for a new card. In short, it's a win-win for everyone.\nCredit card issuers use a variety of measures to stop fraud from happening. These can range from physical features built into your card to complex artificial intelligence systems that detect and decline unusual transactions (a high-dollar purchase made at a store hundreds of miles from where you live, for instance).\nAs a cardholder, you could look for a card or issuer that offers:\n*   **EMV chips**: Cards with EMV chips are now fairly standard. EMV chips can add an extra level of protection compared to swiping a card's magnetic strip, but they may still be susceptible to card shimming—when a device gets put into a card terminal and copies your card's information while it's inserted.\n*   **Contactless cards**: Tapping a card or using a mobile device with a digital wallet can be even safer than swiping or inserting your card. Many popular credit cards from major issuers, including the Chase Freedom Unlimited® come with contactless payments enabled and work with popular digital wallets.\n*   **Virtual card numbers**: Credit card issuers may let you create a virtual card number to use when shopping online, keeping your card's actual information a secret. You can find this feature on some Citi and Capital One cards, including the Capital One Venture Rewards Credit Card.\n*   **Card lock**: Locking a credit card can temporarily stop it from being used for new purchases, which can be nice if you can't find your card but don't want to go through the process of canceling it and waiting for a replacement. It's sometimes called \"freezing\" rather than locking, which lets you temporarily freeze your account online or with the mobile app.\nThere are also credit card fraud prevention measures that could be taking place without you noticing.\nFor example, before a transaction gets approved, it may be assigned a risk score based on the time of day, transaction amount, card's transaction history, the location of your mobile phone and other variables. The merchant can decide whether to approve or deny transactions depending on their risk scores. And online purchases may be scrutinized based on additional information, such as the purchaser's IP address, email host, shipping address and order details. END
 TITLE: How Do Credit Card Companies Investigate Fraud? CONTENT: What Can You Do if You're a Victim of Credit Card Fraud?\n--------------------------------------------------------\nEven with all these safety measures in place, it's best to be mindful of credit card fraud. If your card is lost or stolen, contact your credit card issuer right away so it can cancel your card and send you a replacement.\nYou might need to take additional steps if your personal information is stolen or there are unauthorized charges on your account and you still have your card:\n*   **Add a fraud alert to your credit reports.** When you do this online through Experian's fraud center, Experian will pass on your request to the other two major credit bureaus. A fraud alert asks creditors to take extra steps to verify your identity before opening a new account in your name.\n*   **Lock your credit report.** You can also lock or freeze your credit to help prevent fraud. Doing this will prevent new creditors from accessing your credit report, so you'll have to remember to unlock or thaw your report when you want to apply for a new account in the future. Freezing your credit can cause headaches down the road, so it's usually best to proceed with a fraud alert instead.\n*   **Change account passwords.** If your card's information was stored in your online accounts, it may have been stolen during a data breach. Change your passwords before adding new cards to the account.\n*   **Watch your credit card and bank accounts.** Fraudsters may have access to other credit and debit cards, even if they haven't used them yet. You can monitor the accounts individually, or sync all your accounts to a central platform to easily track them. Many budgeting apps offer this feature. Experian also has a free personal finances tool you can use to connect your accounts and set up customized alerts.\n*   **Monitor your credit.** You can also monitor your credit reports for unusual activity, such as an unfamiliar hard inquiry (these are associated with new credit applications) or a new account. END
 TITLE: How Do Credit Card Companies Investigate Fraud? CONTENT: Monitor and Protect Your Identity\n---------------------------------\nCredit card fraud can be one of the many consequences of having your personal information stolen. Monitoring your credit reports and accounts can help you respond quickly, while a more robust identity monitoring service like Experian IdentityWorksSM can offer additional protections, such as dark web surveillance and address change verification. And if something does happen, the service comes with the lost wallet assistance, identity theft insurance and fraud resolution services. END
 TITLE: How Do Certified Checks Work? CONTENT: How Does a Certified Check Work?\n--------------------------------\nIn many ways, a certified check works like a regular check. You write the check, use it to pay someone else, and the money gets withdrawn from your connected checking account when they deposit it.\nThe difference is a bank or credit union will certify the check after verifying your identity, making sure there's enough money in your account, freezing the funds and then signing or stamping the check to mark that it's certified.\nGenerally, you'll need to visit your bank or credit union branch with your check filled out to get it certified. There also may be a nominal fee, such as $2 to $5, per certification. But call your branch ahead of time to see if it certifies checks and to inquire about fees.\nAlthough a certified check can help protect against fraud and bounced checks, if you're accepting the payment, know that scammers can create fake certified checks that look authentic. Your bank may accept the check and release the funds into your account, but then realize it's a fake and take the money back out of your account. Ultimately, it's your responsibility to make the account whole even if it was an honest mistake and you thought the check was real.\nTo protect yourself from fraud, you may want to avoid accepting certified checks (along with cashier's checks and money orders) and use a well-known online payment or escrow service instead. If you're considering accepting a certified or cashier's check, look up the issuing bank's phone number and call to verify the account and check is legitimate before proceeding. END
 TITLE: How Do Certified Checks Work? CONTENT: Is a Certified Check the Same as a Cashier's Check?\n---------------------------------------------------\nCertified checks and cashier's checks are both types of official bank checks. The main difference is that with a cashier's check, you pay the bank or credit union upfront and it guarantees the check will clear. In contrast, a certified check is a personal check you guarantee, putting the onus on you.\nBoth certified and cashier's checks give sellers a higher level of security versus a regular personal check. Of the two, however, a cashier's check may be safer because a financial institution backs it, so some sellers may require a cashier's check rather than a certified check. END
 TITLE: How Do Certified Checks Work? CONTENT: What Is a Certified Check Used For?\n-----------------------------------\nCertified checks are generally used for significant transactions when the seller doesn't want to or can't accept other forms of payment.\nFor example, you might have to use a certified or cashier's check to make a down payment on a car if the seller doesn't want to pay card processing fees or handle large amounts of cash. Or, you may need a certified check for a security deposit when you move into a new home. Similarly, a certified or cashier's check could be the best option when making a down payment on a mortgage.\nBecause they offer more security than personal checks, a certified check could also be an option for smaller, informal purchases—such as when you buy something via Facebook Marketplace or Craigslist. But be wary of the many scams that can go hand-in-hand with online marketplaces. END
 TITLE: How Do Certified Checks Work? CONTENT: What Are Other Alternatives to a Certified Check?\n-------------------------------------------------\nA certified or cashier's check isn't the only way to securely transfer money, and some of the alternatives may be better suited for certain situations:\n*   **Money orders**: A money order is similar to an official check, but there's often a limit (such as $1,000), and you can buy money orders from a post office, retail store or supermarket in addition to banks. You'll have to specify the recipient when you purchase the money order and pay a small fee in addition to the money order's amount. It could be a good alternative to an official check if you don't have a checking account or would otherwise have to pay high fees for an official check.\n*   **Bank transfers**: You may be able to directly transfer money from one bank account to another with an electronic transfer using the automated clearing house network. These transfers often take several days, and may be free or cost the person initiating the transfer several dollars.\n*   **Wire transfers**: A wire transfer is another option if you want to move money between two accounts. The wire transfer is often quicker than an electronic bank transfer, but there may be higher fees. Also, some banks charge fees to both send and receive wire transfers.\n*   **Money-transfer apps**: You could use a third-party payment service, such as PayPal, Venmo (owned by Paypal) or Zelle. You can often use these to make quick and secure transfers to friends or trusted companies for free.\nWhile you can use many secure forms of payment to send or receive money, always be on the lookout for scams. These can range from fake certified checks to complex schemes that play out over several days, weeks or months. Electronic services aren't immune either, as transactions can be reversed, and money can be taken out of your account. END
 TITLE: How Do Certified Checks Work? CONTENT: Staying Safe With Payments\n--------------------------\nAvoiding scams is an ongoing task. When you're selling something, be cautious about the types of payments you accept. While official checks, money orders and transfers all can be secure, fraudsters also use all sorts of methods to steal money. You can look online for reports of scams involving similar circumstances before handing over or shipping anything. And if you're meeting in person, only agree to meet at a public and secure location—such as a bank or police station.\nSimilarly, when you're buying a product or service, do due diligence if you're unfamiliar with the seller. Particularly when buying through online marketplaces, be wary of buyers who \"accidentally\" give you too much money and ask you to send back the difference. It's a common scam as the initial, large payment gets reversed and you're left without that money or the money you sent.\nWhenever possible, using a credit card can be a safe option because you can dispute a transaction and initiate a chargeback to get your money back if the seller doesn't give you the promised product or service. You can also earn rewards and receive cardholder benefits, such as extended warranties on eligible purchases, with the right card. Using Experian CreditMatchTM, you'll receive personalized card recommendations based on your credit. END
 TITLE: Why You Should Avoid Buying Tradelines CONTENT: How Buying Tradelines Works\n---------------------------\nOne piece of advice credit experts often give to people looking to establish credit is to ask a family member to add them as an authorized user on their credit card account. If the account has a positive payment history and the primary cardholder maintains a low balance relative to their credit limit, it may help to build credit.\nBecoming an authorized user may seem similar to buying tradelines—but there are two big differences: 1) When you buy a tradeline, you don't know the person who is adding you as an authorized user on their account, and 2) you pay them money for the access.\nBuying tradelines is done through a third-party service for a fee, and prices can reach into the thousands of dollars. Once you purchase the tradeline, it will typically remain on your credit report as an open account for a short period, after which you'll be removed from the credit card account. END
 TITLE: Why You Should Avoid Buying Tradelines CONTENT: Is It Illegal to Buy Tradelines?\n--------------------------------\nBuying tradelines may be viewed as deceptive by lenders and credit reporting agencies, and could even put you in danger of committing bank fraud.\nCredit scores are designed to help lenders determine a borrower's creditworthiness, and most use your credit scores and credit reports to determine whether to approve a credit application and what terms you qualify for.\nIf you pay money to improve your credit scores without doing any of the work or even getting a card to use, you could be falsely representing your creditworthiness to potential lenders.\nWith the FICO® Score☉ 8 model, which was introduced in 2009, FICO included technology to help reduce the impact of buying tradelines—so the practice may not even give you the boost you're looking for. END
 TITLE: Why You Should Avoid Buying Tradelines CONTENT: How Is Buying Tradelines Different From Becoming a Traditional Authorized User?\n-------------------------------------------------------------------------------\nAs previously mentioned, a traditional authorized-user scenario involves you having a family member—someone you know and trust—add you to their credit card account. In this situation, you don't have to pay the primary account holder, and you'll typically get a card linked to the account, which you can use (with the primary cardholder's approval) to develop good credit habits.\nBuying tradelines will do nothing to help you build good credit habits because you will not be able to use the card for purchases. In addition, you put yourself in danger of identity theft anytime you give your personal information to strangers. Finally, buying tradelines will expose you to risk you could avoid by finding other ways to improve your credit. END
 TITLE: Why You Should Avoid Buying Tradelines CONTENT: Alternatives for Improving Your Credit Score Fast\n-------------------------------------------------\nOther ways to improve your credit score fast include:\n### Pay Down Credit Card Debt\nYour credit utilization ratio, calculated by dividing your credit card's balance by its credit limit, is a major factor in your credit score, as it shows how much of your available credit you're using. If you have a high utilization rate—over 30%—paying down your balance can help improve your credit score as soon as the account gets reported again to the credit reporting agencies. For the best score, keep your utilization under 6%.\n### Dispute Credit Report Inaccuracies\nIf there are erroneous or fraudulent tradelines on your credit reports, they could be bringing down your credit score. Get a free copy of your report from each of the credit reporting agencies—Experian, Equifax and TransUnion—through AnnualCreditReport.com and review them for potential problem accounts. If you want to monitor your credit report more regularly, you can get a free credit report monthly from Experian.\nIf you find errors on your report, you can dispute it directly with the credit reporting agency, as well as with the creditor, to get it corrected. Once it's removed, your credit score will respond accordingly.\n### Get Credit for Utility and Telecom Payments\nHistorically, utility and telecom payments haven't been included in your credit scores. However, with Experian Boost™† , you can now get credit for making these regular monthly payments. You opt in to allow Experian to identify your utility and telecom payment history, verify the data and confirm you want it included in your Experian credit file. Once you do so, your FICO® Score will be updated immediately, possibly resulting in a credit score boost.\n### Focus on Developing Good Credit Habits\nThere's no guarantee you'll get the benefits you're paying for with tradeline buying, and there are ethical and potentially legal issues to consider with the practice.\nIf your goal is to improve your credit score and keep it in good shape, the best way to do that is to develop and practice good credit habits. Make your payments on time every month, keep your credit card balances relatively low and pay them in full each month, and avoid unnecessary debt. In fact, you're probably better off taking the money you would have spent on buying tradelines to pay down any existing debt.\nAs you establish a positive credit history over time, you'll start to see changes to your credit score and you'll have a much better chance of maintaining it where you want it to be in the long run. END
 TITLE: What Are Tradelines and How Do They Affect You? CONTENT: What Are Tradelines on Your Credit Report?\n------------------------------------------\nFor each revolving and installment credit account that you have, there's a tradeline for it on your credit report. Revolving tradelines include credit cards and lines of credit, while installment tradelines include loans, such as mortgages, auto loans, student loans and personal loans.\nIn addition to identifying the debt itself, a tradeline includes information about the account. That information typically includes:\n*   Lender's name and address\n*   Type of account\n*   Partial account number\n*   Current status\n*   Date the account was opened\n*   Date the account was closed, if applicable\n*   Date of last activity\n*   Current balance\n*   Original loan amount or credit limit\n*   Monthly payment\n*   Recent balance (for credit cards only)\n*   Payment history\nThis information allows you to view all the relevant information about each of your credit accounts in one place. The information for tradelines is provided by the lenders as they report the most recent information they have about your accounts.\nKeep in mind, however, that lenders may differ in how they report your information, so you might see some variations in information across tradelines. END
 TITLE: What Are Tradelines and How Do They Affect You? CONTENT: What Are Tradelines Used For?\n-----------------------------\nThe information included in your tradelines is primarily used to calculate your credit scores. Because a credit score is just a snapshot of your creditworthiness, however, lenders may also check the tradelines on your credit report to get more information.\nIf you're behind on payments with a certain account, for instance, a lender might check the tradeline to find out how long the account has been delinquent. Or if your credit scores have dipped because you have a high utilization rate on a credit card, a creditor can determine whether you're really a credit risk by checking the balance versus the credit limit.\nIf your limit is $300, for instance, maxing out the card might not be as much of a red flag as if your limit were $10,000. END
 TITLE: What Are Tradelines and How Do They Affect You? CONTENT: What Happens When You Are Removed From a Tradeline?\n---------------------------------------------------\nIf you're an authorized user on a credit card, you or the primary cardholder may choose to remove you from the account. If this happens, the tradeline will no longer appear on your credit report.\nIf the tradeline had positive information that was helping boost your credit scores, the removal could have a negative impact on your scores. On the flip side, it could help your credit scores if the credit card account has a high utilization rate or issues with payment history.\nYou may also request to have a tradeline removed if it was created fraudulently. In this case, removing a tradeline can be a good thing for your credit because it gets rid of an unauthorized account that may have negative information attached to it. END
 TITLE: What Are Tradelines and How Do They Affect You? CONTENT: Check Your Credit Report Regularly\n----------------------------------\nThe tradelines on your credit report provide a wealth of information to both you and lenders. To make sure all the information contained in your tradelines is accurate and legitimate, check your credit report regularly.\nYou're entitled to one free credit report from each of the major credit reporting agencies (Experian, Equifax and TransUnion) every 12 months. You can also get free credit monitoring and access to an updated credit report from Experian every 30 days when you sign in. As you review your tradelines frequently, you'll have a better chance of spotting fraud and inaccuracies before they damage your credit scores significantly. END
 TITLE: Understanding Revolving Credit CONTENT: How Does Revolving Credit Work?\n-------------------------------\nA revolving credit account sets a credit limit—a maximum amount you can spend on that account. You can choose either to pay off the balance in full at the end of each billing cycle or to carry over a balance from one month to the next, or \"revolve\" the balance.\nWhen you revolve a balance, you'll have to make a minimum payment each month. This may be a fixed amount, such as $25, or a percentage of your total balance, whichever is higher; you can find specifics in the fine print of your revolving credit agreement. You'll also be charged interest on the balance that is carried over from month to month. (The exception is a credit card or line of credit with a 0% interest introductory period.) You may also have to pay other fees, such as annual fees, origination fees or fees for missed or late payments.\nExamples of revolving credit include credit cards, personal lines of credit and home equity lines of credit (HELOCs). Credit cards can be used for large or small expenses; lines of credit are generally used to finance major expenses, such as home remodeling or repairs. A line of credit allows you to draw money from the account up to your credit limit; as you repay it, the amount of credit available to you rises again. END
 TITLE: Understanding Revolving Credit CONTENT: How is Revolving Credit Different from Installment?\n---------------------------------------------------\nThere are two major types of credit: revolving credit and installment credit. Installment loans allow you to borrow a set amount of money and repay it over a specified period of time in fixed monthly installments. Auto loans, student loans and mortgage loans are examples of installment loans. Once you pay off an installment loan, the account is closed; you can't go back and borrow the same amount again. With revolving credit, as soon as you pay down your balance, you can draw or spend again within your credit limit.\nInstallment loans have their pluses and minuses.\nThe big plus: You always know how much you'll be paying each month, which makes it easier to budget and plan.\nThe big minus: Installment loans aren't as flexible as revolving credit. If money is tight one month, you can't make a minimum payment on your mortgage or car loan—you have to make the full loan payment. But you can pay just the minimum on your revolving credit accounts. END
 TITLE: Understanding Revolving Credit CONTENT: How Do Revolving Accounts Affect Credit Scores?\n-----------------------------------------------\nLike all types of credit, revolving credit accounts can either hurt or help your credit scores depending on how you use them. If you have little or no credit history—say, you just got out of high school or college—getting a credit card, using it for small purchases and paying the bill in full and on time every month is a great way to start building a good credit score. (Without a credit history, you may need to get a starter credit card.)\nMaking your payments on time is the single biggest factor in your credit score, so be sure to meet your payment due dates. See if it's possible to set up autopay so you never miss a payment.\nIdeally, you should also pay your credit card balance in full every month. If you can't manage to do that, aim to keep the balance below 30% of your available credit. Credit scores are highly sensitive to your credit utilization ratio—the amount of revolving credit you're using relative to your total credit limits—and a utilization ratio over 30% can hurt your credit score. To figure out your utilization rate, divide your total credit card balances by your total credit limits. For example, if you have a credit card with a $9,000 limit, a $3,000 balance would put you at 30% utilization.\nOpening and closing revolving accounts can also affect your credit score in several ways.\n*   **Diversifying your credit mix**: Having a mix of different types of credit is a factor in your credit score, and showing that you can manage various kinds of credit can help build a strong credit history. If your only current credit account is an installment loan—for instance, you just graduated from college and are paying off a student loan—getting a credit card will improve your credit mix.\n*   **Causing hard inquiries**: When you apply for revolving credit, the lender requests your credit file from the credit bureaus, resulting in a hard inquiry on your credit report. Hard inquiries cause a dip in your credit score, though usually only for a few months. (The inquiry will remain on your credit report for two years.) In addition, applying for several credit cards or loans at once can hurt your credit score by suggesting to credit scoring models such as FICO that you're in financial trouble. The one exception is when you're rate-shopping for a mortgage or other loan; in this case, the credit scoring models typically treat those inquiries as a single event.\n*   **Closing accounts**: Closing a credit card that you're not using anymore might sound like a good idea, but since it reduces the amount of credit you have available to you, it may also push your credit utilization ratio over 30%. Even if the card has a zero balance, keeping the account open can help your credit score. END
 TITLE: Understanding Revolving Credit CONTENT: A Useful Financial Tool\n-----------------------\nWhether you use a credit card to conveniently pay your cable bill each month or take out a HELOC to finance your new rec room, revolving credit offers a useful way to pay for both ongoing purchases and one-time expenses. When you use it responsibly, revolving credit can help you manage your cash flow and build a good credit score—both of which are key to a healthy financial life. END
 TITLE: Can Experian Boost Lower My Credit Score? CONTENT: How Does Experian Boost Raise Your Credit Score?\n------------------------------------------------\nHistorically, utility, phone, cable and internet bills were not factored into your credit scores. With Experian Boost, those payments could improve your credit scores when you give Experian permission to connect to the online bank account(s) you use to pay your monthly bills. Experian finds qualifying on-time payments, and once you verify the information and confirm that you want to add the accounts to your credit file, you'll receive an updated credit score instantly. The process takes about five minutes, and if you're eligible for a credit score boost, it will happen immediately.\nBy adding these new records to your credit file, Experian Boost helps you build positive payment history. Payment history is the most important factor in calculating your credit scores, so adding records of on-time payments can be very valuable. Keep in mind, Experian Boost only considers positive payment history, so late payments on your added accounts will not negatively affect your credit scores.\nThe length of your credit history is another important aspect of your credit scores. By adding more accounts to your credit file, Experian Boost can help you build credit history since you'll have more evidence of active tradelines (accounts) and on-time payments. END
 TITLE: Can Experian Boost Lower My Credit Score? CONTENT: How Effective Is Experian Boost?\n--------------------------------\nSince Experian Boost launched, more than 1.3 million Americans have completed the process, and many of them—over 840,000—have instantly improved their FICO® Scores. Across the country, consumers have collectively boosted their FICO® Scores more than 11 million points—or an average of 13 points per person.\nWhile some may not see an instant boost after adding utility and telecom accounts to their credit file, Experian Boost will continue to look for qualifying on-time payments and add them to your file. Keeping your account connected to Boost—and continuing to pay your bills on time—can improve your credit health and may boost your score later down the line. END
 TITLE: Can Experian Boost Lower My Credit Score? CONTENT: Is Experian Boost Safe?\n-----------------------\nIn short—yes, Experian Boost is safe. Experian utilizes read-only access to your bank statement data to find your qualifying payments made to telecom and utility companies. This process is secure, and Experian does not store any consumer bank credentials—it only stores a record of any qualifying on-time payments. END
 TITLE: Can Experian Boost Lower My Credit Score? CONTENT: Can I Disconnect Experian Boost?\n--------------------------------\nWhile Experian Boost works for most people, some consumers may see their scores stay the same or go down once they link their bank accounts.\nThis is a result of the complex algorithm used to calculate credit scores. If you see your FICO® Score decrease as a result of connecting your bank accounts through Experian Boost, you can simply disconnect your linked banks and your score should return to its previous number. Remember, you can always give Experian Boost another try by reconnecting your accounts later on.\nIf your credit scores stay the same, keeping your bank accounts linked can help your overall credit health and may help boost your FICO® Score in time. If your bank accounts stay linked, Experian will continue to check for qualifying on-time payments and will add them to your credit file if they are found.\nIf you pay utility or telecom bills using your checking or savings account, consider trying Experian Boost to see if you can instantly raise your FICO® Score and get credit for your past on-time payments. You can always get your free credit score from Experian to stay on top of your credit and see how you may be able to improve your scores. END
 TITLE: How Do Home Improvement Loans Work? CONTENT: What Is a Home Improvement Loan?\n--------------------------------\nA home improvement loan isn't a specific type of loan. Rather, it describes how you're going to use the funds. You could take out a home improvement loan to repair damage after a natural disaster, upgrade your plumbing or build an addition—just to name a few of the many possible projects.\nYou can use either secured or unsecured loans for home improvements. A secured loan, such as a home equity loan, home equity line of credit (HELOC) or cash-out refinance, requires collateral. In these cases, your home serves as collateral for the money you borrow, and the lender may be able to foreclose on your home if you can't repay the money.\nUnsecured loans don't require collateral and include personal loans and credit cards. While you don't have to put your assets at risk to take out an unsecured loan, they may be harder to qualify for or offer less favorable terms. END
 TITLE: How Do Home Improvement Loans Work? CONTENT: Where to Get a Home Improvement Loan\n------------------------------------\nChoosing how to finance your home improvement project can depend on the type of work you want to do, your project's timeline and your creditworthiness.\nFor example, if you need to borrow $5,000 and have good credit, you might want to consider a credit card that has an introductory 0% annual percentage rate (APR) on purchases. Some of the best 0% APR cards have a 15- to 21-month introductory period, during which your purchases won't accrue interest. If you can pay off your balance before the introductory period ends, you may be able to finance your home improvement project for free.\nHowever, a secured loan or unsecured personal loan might have a higher loan limit than a new credit card. The interest rate may also be much lower than a credit card, although interest starts to accrue right away.\nIf you need a loan quickly, don't want to use your home as collateral or don't have much equity, an unsecured personal loan could be best. But if you're up for a more intricate application process, you are comfortable using your home as collateral, and you've established enough equity to qualify, a secured loan may offer a lower interest rate.\nAdditionally, you might get a tax deduction for the interest you pay on a home equity loan, HELOC or cash-out refinance if you use the money to substantially improve (rather than do basic repairs or maintenance) your home. To qualify, the IRS says your project must add value to your home, increase your home's useful life or adapt your home for a new use. END
 TITLE: How Do Home Improvement Loans Work? CONTENT: What Credit Score Is Needed for a Home Improvement Loan?\n--------------------------------------------------------\nWhether you're applying for a credit card, secured loan or unsecured loan, your credit scores, income, debt-to-income ratio and the equity in your home (for secured loans) can all factor into whether you're approved and if you receive favorable terms.\nEach creditor and loan type may have its own credit score requirements, but there are some general guidelines. For example, you may need a FICO® Score☉ of at least 660 to get approved for a mortgage-backed loan. However, a 680 credit score or better may increase your chances, and having a score above 700 could make it easier to qualify and receive good terms.\nUnsecured loans, including personal loans and credit cards, tend to require higher credit scores because you're not offering collateral to the creditor. You can sometimes get approved with a low score, but if you do, you might not get a high enough credit limit or loan amount to finance your project. Or, you might wind up with such a high interest rate that it isn't worth borrowing the money unless your project is a necessity. END
 TITLE: How Do Home Improvement Loans Work? CONTENT: Compare Your Options to Find the Best Rates\n-------------------------------------------\nNo matter which route you're considering, comparing options from multiple creditors can help you find the lowest rates and best terms. With Experian CreditMatchTM, you can quickly compare customized credit card and personal loan offers based on your unique credit profile. You may even be able to get prequalified for a card or loan with a soft inquiry, which won't hurt your credit scores. END
 TITLE: Do I Need Good Credit for a Home Equity Loan? CONTENT: What Your Credit History Says About You\n---------------------------------------\nWhile your credit score is a key measure for determining your creditworthiness, lenders also like to check your credit report to see if there are any red flags.\nFor example, it's possible to have a decent credit score but have bankruptcy on your credit report from a few years ago. In this situation, the bankruptcy could hurt your chances of getting approved.\nMore important, lenders will want to see how you've handled past mortgage loans. If you have a short sale or foreclosure on your report, it could be a deal breaker.\nAgain, check your credit report to make sure there aren't any errors or fraudulent accounts. If you've filed bankruptcy in the last few years or have a short sale or foreclosure, you may still have a chance of getting a home equity loan. It just means you'll need to do more legwork to find lenders that are willing to work with you. END
 TITLE: Do I Need Good Credit for a Home Equity Loan? CONTENT: Is a Home Equity Loan Right for You?\n------------------------------------\nHome equity loans can be a good borrowing option in the right circumstance, but there are some things to consider. Here's a quick summary of the pros and cons.\n### Pros of a Home Equity Loan\n**Low interest rates**: While a lower credit score could give you a higher interest rate, you'll likely still get a lower rate than you would with a personal loan. That's because the collateral—your home's equity—lowers the risk to the lender.\n**Interest may be tax-deductible**: If you use your loan to buy, build or substantially improve the home you use to secure the loan, you may be able to deduct the interest you pay. The deduction is available for qualified mortgage loans up to $750,000.\n**No restrictions for how you use the money**: Home equity loans function similarly to personal loans in that they don't require that you use the loan for a specific purpose. This means you can use a home equity loan to consolidate other debt, pay for home improvements or cover the cost of tuition for one of your children.\n> Find the best personal loans in Experian CreditMatch™.\n### Cons of a Home Equity Loan\n**You could lose your house**: Because your loan is secured by your home's equity, the lender has a right to that equity if you default on the loan. To get its collateral, the bank could foreclose on you and take the house to satisfy the debt.\n**High costs**: Just like your mortgage loan, home equity loans typically come with closing costs and fees. Depending on the lender, these costs could neutralize the savings you'd get with a lower interest rate.\n**You could end up underwater**: If you tap a large portion of your home's equity, it could leave you owing more than the house is worth if property values drop in your area. END
 TITLE: Do I Need Good Credit for a Home Equity Loan? CONTENT: The Bottom Line\n---------------\nBefore you borrow with a home equity loan, it's important to know what you're getting yourself into. It's also essential to understand what your chances are of getting approved. If your credit score, DTI or credit report need some work, put off borrowing until they're in better shape. END
 TITLE: How Does Compound Interest Work? CONTENT: Say you put $1,000 into a savings account with a 10% interest rate (an unrealistically high rate, but helpful for examples) that compounds annually. At the end of the first year, you'll have $1,100—the initial $1,000 in principal plus $100 in interest. That $100 is \"simple\" interest—interest based only on the principal amount invested.\nAt the end of the second year, you'll have $1,210—the $1,100 from the previous year plus $110 in added interest (10% of $1,100). Instead of calculating interest based only on your original principal, compounding interest calculates your annual interest based on the principal plus any previous interest you earned on that principal.\nBy the end of the 10th year, you'll have $2,594, more than double your initial savings (without adding any more of your own money after your initial investment). You can thank compound interest for that. END
 TITLE: How Does Compound Interest Work? CONTENT: What Is the Formula for Compound Interest?\n------------------------------------------\nThe compound interest formula is:\nA = P(1+r\/n)nt\n*   **P** is the principal (the starting amount)\n*   **r** is the annual interest rate, which is written as a decimal\n*   **n** is the number of times the interest compounds each year\n*   **t** is the time, or total number of years\n*   **A** is the total amount you will wind up with at the end of the timeframe\nFortunately, you don't need to be a math whiz to put the formula to work. You can use one of the many online calculators to figure out how much interest will accrue and how compounding can impact your savings or debt. However, the formula can offer insight into how compounding works.\nWhether you're saving or borrowing money, you may already know the amount you'll start with (P) and your timeframe (t). As a result, there are two variables to consider as you compare your options—the interest rate (r) and compounding frequency (n).\nThe impact of a higher or lower interest rate is fairly straightforward. A higher rate means more interest gets added each cycle.\nSimilarly, the more often interest compounds, the faster the growth. For example, here's how different frequencies impact the growth of $1,000 with a 10% interest rate.\nCompounds daily\nCompounds monthly\nCompounds annually\nAfter one year\n$1,105\n$1,105\n$1,100\nAfter two years\n$1,221\n$1,220\n$1,210\nAfter five years\n$1,649\n$1,645\n$1,611\nAfter 10 years\n$2,718\n$2,707\n$2,594 END
 TITLE: How Does Compound Interest Work? CONTENT: How Does Compound Interest Affect Debt?\n---------------------------------------\nWhile compound interest can help your savings grow more quickly than it would with simple interest, it can also work against you when you're borrowing money.\nMany credit cards compound interest daily on average daily balances. While the calculation is complicated, the bottom line isn't: Compound interest on credit cards adds to your debt when you carry over a balance from month to month. The (often high) interest rate and daily compounding are two reasons paying off credit card debt can be difficult—and why you should always try to pay your credit card balance in full each month. That way you're charged zero interest and don't have to worry about compounding interest on your debt at all.\nSome types of loans, such as federal student loans and mortgages, generally don't have daily compounding interest. As long as your monthly payment covers the accrued interest, then the interest doesn't compound.\nHowever, if your monthly payment doesn't cover the monthly interest, then your overall loan balance may grow—what's known as negative amortization. If the unpaid interest gets added to your principal balance, then the interest rate may apply to that larger balance (in other words, the interest compounds).\nWhen you're applying for any type of loan, but especially a large loan, make sure you understand how interest accumulates and when it compounds (if at all). END
 TITLE: How Does Compound Interest Work? CONTENT: Using Your Knowledge of Compounding Interest\n--------------------------------------------\nYou can make more strategic financial decisions once you understand how compounding works. For example, look for a savings account that offers daily (rather than monthly or yearly) compounding and transfer your savings into the account as frequently as possible. On the flip side, make credit card payments throughout the month to decrease how much interest accrues and compounds—and pay off your balance in full each month whenever possible. END
 TITLE: How Do Credit-Builder Loans Work? CONTENT: What Is a Credit-Builder Loan and How Does It Help Build Credit?\n----------------------------------------------------------------\nCredit-builder loans are typically for small amounts of $1,000 or less. These loan usually have a repayment term of six to 24 months, so it's a short-term loan borrowers primarily use to boost credit.\nWith credit-builder loans, money you borrow is set aside for you in a secured savings account or certificate of deposit (CD) while you pay off the loan. Once you make all of the monthly payments—with interest—then you receive the funds. While you make payments, the lender reports your payment activity to the three major credit bureaus (Experian, TransUnion and Equifax).\nThe idea is that you can show off your ability to make regular, on-time payments over a period of time. That's important because payment history typically accounts for 35% of your credit scores. In the end, you not only improve your credit history but also save money you might not have otherwise.\nOnce you increase your scores, you can start qualifying for other forms of credit, such as personal loans or credit cards, which can further improve your credit (provided you keep making payments on time). END
 TITLE: How Do Credit-Builder Loans Work? CONTENT: Does Missing a Payment Impact My Credit?\n----------------------------------------\nWhile a credit-builder loan can be an excellent tool for improving your credit, missing payments on that loan can have the opposite effect. If you miss a payment on the loan or are even just a few days late, the lender may report that activity to the three major credit bureaus, which will cause your scores to drop. That's why you should only take out a loan if you're sure you can afford the payments. END
 TITLE: How Do Credit-Builder Loans Work? CONTENT: What Happens After I Pay Off the Loan?\n--------------------------------------\nOnce you make all of the required payments on your credit-builder loan, the lender will release the funds to you. In some cases, the lender will issue you the money along with some of the interest that you paid, minus the cost of fees. However, not all lenders have this policy, so it's a good idea to find out the interest rate, fees and policies on returning interest paid when you are shopping credit-builder lenders.\nUsually, the money is wired directly to your checking or savings account as a lump sum. The money is then yours to use as you wish; you can boost your emergency fund, pay down debt or save it for a major purchase. END
 TITLE: How Do Credit-Builder Loans Work? CONTENT: Is It Possible to Get Out of a Credit-Builder Loan Early?\n---------------------------------------------------------\nWhile most lenders will allow you to pay off the credit-builder loan ahead of schedule, doing so defeats the purpose of taking out the loan in the first place. By repaying the loan early, you cut short the positive payment history, which is what you're trying to achieve to help build credit.\nOne thing to keep in mind is that there are different consequences for paying off a loan ahead of schedule if your money is kept in a certificate of deposit (CD). If you do pay off the loan early, you'll need to wait to close the CD and withdraw the money. And you'll have to pay a penalty. If you've taken out a credit-builder loan to improve your credit, it's best to complete payments per the loan term and not pay it off early. END
 TITLE: How Do Credit-Builder Loans Work? CONTENT: Do Credit-Builder Loans Earn Interest?\n--------------------------------------\nWith some credit-builder loan lenders, the lender places your funds in an interest-bearing savings account or CD while you make payments. When you finish making payments, the amount is released to you. While you can technically earn some interest on a credit-builder loan, the rate you earn in interest will be at a far lower rate than the interest you pay on the loan.\nFor example, you may have a loan held in a CD that earns 1.25% interest. But the interest rate you're paying on the loan could be as high as 15%. Any earnings that you would have made—and it's likely you won't earn more than a couple of dollars—will likely be eaten up by the interest rate and fees you pay on the loan. END
 TITLE: How Do Credit-Builder Loans Work? CONTENT: What Fees Do Lenders Charge on Credit-Builder Loans?\n----------------------------------------------------\nCredit-builder loans can be helpful, but they can also be expensive. Some credit-builder loans have significant fees, including:\n*   **Administrative fees:** These are usually paid before you can qualify for the loan. For loan provider Self Lender, for example, the administrative fee can be $9 to $15.\n*   **Annual percentage rate (APR):** Credit-building loans charge interest and fees; the APR is the rate of interest they charge. APRs typically range from 6% to 16% on these loans and are dependent on your creditworthiness and the lender's rates.\n*   **Late fees:** If you miss a payment, you may have to pay a fee on top of what you already owe—usually a percentage of that missed payment.\nIf used carefully, credit-builder loans can be a great first step toward establishing a strong credit history so you can qualify for other types of credit. However, it's important that you're aware of the fees associated with them, as they can be costly.\nIf you're looking for other options to boost your credit, consider applying for a secured credit card. If you pay off your statement balance in full each month, you'll avoid paying interest and still increase your credit score. END
 TITLE: Can I Get a Paid Collection Removed From My Credit File? CONTENT: Do I Need to Notify Credit Bureaus of Paid Collections?\n-------------------------------------------------------\nIf you pay off or settle a debt with a collection agency, the status of the collection account on your credit report should update to \"paid\" or \"settled\" within a month or two. You do not need to do anything to make that happen; the collection agency should notify the three national credit bureaus (Experian, TransUnion and Equifax) to update their records.\nIf that doesn't occur, you can file a dispute with each of the bureaus to have the records corrected. You'll likely need to provide proof of payment, such as a cancelled check. END
 TITLE: Can I Get a Paid Collection Removed From My Credit File? CONTENT: How Do Collections Affect Credit?\n---------------------------------\nCreditors view collection accounts as red flags, but likely view paid collections with less disfavor than unpaid ones. The most recent version of the FICO® Score☉ (FICO 9) and versions 3.0 and 4.0 of the VantageScore® credit scoring systems agree: Unpaid collections can hurt your credit score, but paid ones do not.\nSome lenders use older versions of both credit scoring systems that still count paid collection accounts, however, and there's no way to know ahead of time which credit scoring method(s) a lender will use when deciding to approve a loan application. So while paid collections on your credit report may still hurt your chances of approval, paying off the account gives an opportunity to do the least possible damage. END
 TITLE: Can I Get a Paid Collection Removed From My Credit File? CONTENT: Does the Open Date of a Collection Account Determine When It's Removed?\n-----------------------------------------------------------------------\nIt sometimes takes a year or more between an account's charge-off and its sale to a collection agency, and collection agencies that fail to collect their debts sometimes resell them to still other agencies. That means multiple collection account entries—all related to the same unpaid debt—may appear on your credit reports.\nWhile that's not great news, you need not worry that each new entry has its own seven-year countdown to expiration. Any collection entries related to the same original debt will disappear from your credit report seven years from the date of the first missed payment that led up to the charge-off. END
 TITLE: Can I Get a Paid Collection Removed From My Credit File? CONTENT: How to Improve Your Credit When You Have Collections\n----------------------------------------------------\nIf you have legitimate collection accounts on your credit reports, there's nothing you can do to get them removed before their expiration dates. But you can take steps immediately to start rebuilding your credit and reversing the damage those collections have done to your credit score:\n*   **Consider paying any unpaid collection accounts.** Lenders aren't fans of any collection entry on your credit reports, but they're likely to view collections with a \"paid\" status more positively than those left unpaid.\n*   **Pay your bills on time.** Lenders are very interested in how reliably you pay your bills. Because they consider past payment history a good predictor of future behavior, lenders view late and missed payments as red flags. And since payment history is the biggest factor in your credit scores, reliably paying bills can help you there as well.\n*   **Consider getting credit for timely utility and cellphone payments.** If you've been keeping current on your utility and cellphone payments, you might be able to improve your Experian credit scores by enrolling in a free program called Experian Boost™† . You provide Experian access to your utility and telecom payment history and confirm you want the accounts added to your Experian credit file, and your FICO® Score based on Experian data will update instantly.\n*   **Keep credit card balances relatively low.** Your credit utilization ratio—your current credit card debt compared with your total credit limit—is an important factor in credit score calculations. Lenders typically like to see utilization ratios under 30%, and people with the best credit scores often have credit utilization ratios in the low single digits.\n*   **Apply for and open new credit accounts only as needed.** Taking on unnecessary credit can harm your credit score in multiple ways, from causing too many hard inquiries on your credit report to tempting you to overspend and drive up your debt.\n*   **Avoid closing unused credit cards.** As long as they're not costing you money in fees, it's smart to keep unused credit cards open. That's because closing unused accounts when you have other accounts with outstanding balances increases your credit utilization ratio.\n*   **Dispute inaccuracies on your credit reports.** Check your credit reports at all three credit bureaus for any inaccuracies. Incorrect information, including paid collection accounts erroneously marked unpaid, can lower your credit scores. If you see errors on your credit reports, dispute the information and get it corrected right away.\nWhen it comes to accurate collection entries on your credit reports, there's nothing you can do to get rid of them except wait for their inevitable expiration date. So don't fret over past mistakes; instead, try to avoid future missteps, improve your credit habits and rebuild your credit in the process. END
 TITLE: Can a Collection Agency Change an Account’s Open Date? CONTENT: When Is a Collection Account Removed?\n-------------------------------------\nThe charge-off entry and any collection entry related to that debt will expire and disappear or \"drop off\" your credit report seven years from the first missed payment that led to the charge-off. END
 TITLE: Can a Collection Agency Change an Account’s Open Date? CONTENT: Can a Collection Agency Report an Old Debt as New?\n--------------------------------------------------\nThe open date for a collection account is always going to be more recent than the date the original debt was charged off, but lenders and others reviewing your credit report will know that that new collection entries are related to older debts.\nIt's even possible for a single debt, if uncollected, to lead to more than one collection entry on your credit report. A collection agency that's unsuccessful getting a payment from you can re-sell the debt to another collection agency. If that occurs, you'll see yet another collection entry appear on your credit report, with an even newer open date than the first one.\nWhile the open dates for these collections will vary, they all must retain the delinquency date connected to the original charge-off. The charge-off and all collection entries related to it will disappear from your credit report seven years from that original delinquency date.\nNegative entries in your credit report are never welcome, but it may come as some relief to know that a collection entry (or even multiple entries) related to a given charged-off debt will expire at the same time as the original charge-off, no matter what the open date is on the collection accounts. END
 TITLE: A Beginner’s Guide to Building Credit CONTENT: How a Credit Score Is Calculated\n--------------------------------\nA credit score is a number that uses the information that appears on your credit report to estimate how likely you are to repay a loan on time. Lenders refer to this score to help them determine their level of risk in lending you money. That's because credit scores are based on the idea that past actions are predictive of future behavior. Specifically, a credit score is designed to predict your likelihood of falling at least 90 days behind on a bill within the next two years.\nThough there are many credit scoring models, most lenders use the FICO® Score☉ or VantageScore®. Both range from 300 to 850, with higher numbers generally indicating a lower risk to lenders. Each credit scoring model uses a proprietary algorithm. Some more heavily weigh certain data, but the same general rules apply: You will earn a higher score if you make all your debt payments on time, keep revolving balances well below your credit limit, and have a variety of account types.\nYou have no control over which scoring model a lender will use, but you do have control over your own financial habits to ensure the information that ends up on your credit report helps your scores.\nFirst, understand what does not go into a credit score. Employment status and income will not play a factor, though you will list them on a loan application. Also absent from your scores: Your age, race, gender, where you live and other personal identifying information.\nSo, what are credit scores calculating? Your credit reports tabulate how well you have been managing your financial obligations. To develop a credit score you'll need to open and use credit accounts, such as loans and credit cards. Your activity with them—how long you've had the account, number of on-time payments and other factors—is used to calculate your scores.\nFor a loan, credit scoring models will factor in the age of the loan, the amount, whether you made any late payments and the balance left on the loan. For a credit card, what matters is your monthly payment pattern, how much of your available credit you're using, length of time you've had it and your total number of credit lines.\nExpect your credit scores to be negatively impacted if your credit reports show late or missed payments, foreclosures, collection accounts or charge-offs. If you use too much of your available revolving credit—30% or more for most scoring models—your credit score could take a hit. Also, each time you apply for credit, a hard inquiry will be noted on your report. Too many hard inquiries in a short period of time can shave points from your score. END
 TITLE: A Beginner’s Guide to Building Credit CONTENT: Reasons Why You May Not Have a Credit Score\n-------------------------------------------\nAvoiding debt may seem natural to those just starting out, but it starves your credit reports of vital data. Using credit and incurring debt—even very small amounts you quickly pay off—makes you less of a mystery to lenders. If you never take on debt, a lender will have no idea what kind of borrower you may be, which makes you inherently risky.\nWithout supplying sufficient information to your credit report for a long enough period of time, you will have what's called a thin credit file, and may not have a credit score. Maybe you're a young adult and haven't entered the world of credit yet. If you're an immigrant to the U.S., any debts from your country of origin won't be listed on your credit reports from the three major U.S. credit bureaus (Experian, TransUnion and Equifax). These situations can leave you with a thin credit file until you begin building more credit.\nIf you have recently opened credit accounts on your credit reports, you won't have a credit score until you have used them for a while. The two primary scoring models, FICO and VantageScore, consider your accounts slightly differently. A FICO® Score will develop after you have at least one account open and recorded on your file for six months. A VantageScore, though, will generate much faster. As long as your credit report shows at least one account, it can begin to factor in to your VantageScore.\nWith either scoring model, you'll have to keep accounts active if you want them to reflect positively on your credit. Inactive accounts are at risk of being closed. Closing an account can cause your score to drop if it increases your credit utilization rate or shortens your credit age. Even if paid-off loans and credit cards still appear on your report, there won't be sufficient activity for the scoring model to create an accurate score if you haven't made a charge or a payment in 24 months. END
 TITLE: A Beginner’s Guide to Building Credit CONTENT: How to Start Building Your Credit\n---------------------------------\nYou can start to build credit by adding accounts to your credit reports now. If you're just beginning, you have options:\n*   **Secured credit card**: To get a secured card, you need to put down a cash deposit with the credit card issuer, which is generally equal to the card's credit limit. That money is held in a separate account, and the funds guarantee the credit line so there is virtually no risk for the lender. If you run up a debt that you don't pay, the lender simply keeps the deposit. But if you pay all your bills on time, you'll likely receive your deposit back. When deciding on a secured credit card, make sure to choose one that reports payments to the three credit bureaus\n*   **Low limit unsecured credit card**: These can also be an option, since the issuer won't lose much if you default. Low limit unsecured credit cards tend not to require a high credit score, and won't require upfront cash like a secured card. They do usually charge high interest rates, however, so shop around when you're looking for one of these cards.\n*   **Become an authorized user**: Another possibility is to become an authorized user on a close friend's or relative's credit card account. Most issuers will send the account history to all cardholders' credit reports. When it appears on yours, it will jumpstart your credit history. An authorized user doesn't even have to use the card to reap the rewards, as long as the primary cardholder uses it and makes payments on time.\n*   **Credit-builder loan**: Applying for and repaying a loan will also help improve your scores, since it adds variety to the mix. Credit-builder loans, usually offered by credit unions, can be a great addition. Like a secured credit card, you deposit a sum of cash into a separate account and receive a loan that matches the deposit. You then repay the loan in installments (plus interest) over a fixed term. When you've paid it off, you get your deposit back.\n*   **Cell phone and utility bills**: If you have utility accounts or a cellphone in your name, you can add them to your credit report with Experian Boost™† . It's a free program, and once those accounts are listed on your credit reports, your timely bill payments will add points to your credit scores.\nAfter you have at least one type of credit account on your credit reports, consider applying for another in your name to add variety.\nJust be sure to treat credit cards the right way. Pay the debt in full by the due date every month. If you do charge something expensive, be conscious of your credit utilization ratio—the amount of credit you're using relative to your available credit. Owing less than 30 percent of your available credit is considered good, but it's better not to carry a balance from month to month at all. END
 TITLE: A Beginner’s Guide to Building Credit CONTENT: The Takeaway\n------------\nThe sooner you start to add information to your credit reports, the faster your scores will develop. In as little as a few months, a three-digit score will be generated. It may be low in the beginning, but by continuing to prove that you're financially responsible with a several types of debt, your scores will steadily rise. END
 TITLE: A Guide to Establishing Credit for the First Time CONTENT: Why You Should Start Building Credit Early\n------------------------------------------\nYoung people often have limited experience with credit and might not realize all the ways that good credit can make life easier.\n*   **Applying for credit**: Your credit history and scores are important when you're applying for loans and credit cards. If you have good credit, it will likely be easier to get approved, and you may be offered better terms, such as a lower interest rate.\n*   **Renting an apartment**: Your landlord may check your credit report before agreeing to take you on as a tenant. Also, if you have poor or no credit, you might need to pay a larger security deposit to rent the apartment, turn on utilities, and set up internet or cable services.\n*   **Getting your own phone plan**: You may need good credit if you want to get off your parents' plan and get a new cell phone and monthly payment plan.\n*   **Obtaining insurance**: In some states, your credit history can impact your insurance rates. Also, having good credit could lower your monthly premiums. While you may still be on your family's car insurance policy now, that won't always be the case.\n*   **Getting a new job**: Some employers may consider your credit when deciding whether to offer you a position.\n*   **Refinancing your loans**: You may be able to refinance private student loans at a lower interest rate if you have good credit and a steady job.\nBecause the length of your credit history can be important to creditors and is a factor when calculating credit scores, starting at age 18 or even earlier could give you a leg up.\nWhat's the Best Way for a Young Person to Build Credit?\n-------------------------------------------------------\nThere are many ways to build credit, and they all involve creditors reporting your bill payment information to the major credit bureaus: Experian, Equifax and TransUnion. To begin establishing credit if you have none, try one or more of these options:\n#### *   Become an authorized user on a parent's credit card.\nIf one or both of your parents have a good credit history and keep their credit card balance low, you could ask them to add you to the account as an authorized user. As an authorized user, you may or may not have your own credit card for purchases, depending on your agreement with the primary cardholder, but assuming they continue to pay the bill on time and keep their balance low, your credit could benefit. Make sure the card issuer reports authorized-user activity to the credit bureaus, because not all do.\n#### *   Open a student or secured credit card.\nCollege students can apply for a student credit card, which is often easier to get approved for than a non-student card. Whether or not you're in school, you could also consider getting a secured credit card. Secured cards require a security deposit, which typically becomes your credit limit. This makes secured credit cards easier to obtain than regular unsecured cards because the deposit limits the issuer's risk. Some card issuers will transition you to a regular unsecured credit card once you've shown responsible use of your secured card.\n#### *   Pay your student loans on time.\nIf you took out student loans to pay for college, your lender(s) will usually report your accounts and payments to the credit bureaus. Even if you defer making payments until after you leave school, student loans can help you establish credit—as long as you make your payments on time every month once you do start paying them back.\n#### *   Take out a credit-builder loan.\nSome lenders offer loans geared to helping borrowers establish credit. With credit-builder loans, the bank sets aside the loan amount (usually $300 to $1,000), and you receive the money after you've made all the monthly payments. You'll generally have to pay interest on credit-builder loans from banks and credit unions, but some may return all or a portion of that interest once you pay off the loan. Mission Asset Fund offers a no-interest lending circle program, which could help you build an emergency fund and your credit at the same time. In either case, these loans will help you establish credit and show future creditors you are a responsible borrower.\n#### *   Add utility and telecom bills to your Experian credit report.\nIf you're living on your own and responsible for your cell phone bill and utility bills, you can add these accounts to your Experian credit report with Experian Boost™† . Once they're in your report, your on-time payments may improve your credit history and increase your credit scores.\nCommon Mistakes Young People Make When Building Credit\n------------------------------------------------------\nBuilding credit doesn't need to be difficult, but misconceptions can set you back and cost you money. Young people are often brand new to credit and may be particularly vulnerable to believing credit myths and making mistakes. Here are actions you should avoid:\n*   **Missing payments.** Even one late credit card or loan payment can negatively impact your credit. Setting up automatic payments could help you avoid accidentally missing a payment, but make sure you have the funds in your bank account to pay the bills. Also, if you fall far behind on payments—including utility, phone, medical and other payments—your account could be sent to collections, and the collection agency may report your collections account to the credit bureaus.\n*   **Forgetting about closed accounts.** Similarly, if you close an account that has a balance, such as a utility or cable account when you move, make sure to pay off the balance. Leaving the bill unpaid could result in the account getting sent to collections.\n*   **Taking on too much credit card debt.** Access to a credit card leads some young people to spend more than they can afford to pay off each month. Carrying a balance leads to interest charges, and having a high balance can hurt your credit scores. It's best to treat your credit card as a debit card and only use it for purchases that you can afford to pay off.\n*   **Not paying off credit card balances.** You don't need to maintain a credit card balance to build credit. On the contrary, it's best to pay your bill in full each month to avoid interest charges. Also, paying off your credit card bill each month keeps your credit utilization ratio low. Your utilization ratio, or rate, is the amount of credit you're using compared with how much you have available, and it's an important factor in your credit score. Experts recommend keeping your utilization ratio under 30%. So if you have a card with a credit limit of $1,500, always keep your balance under $500, and pay off your balance when you pay your bill each month.\n*   **Submitting back-to-back loan applications.** When a lender requests your credit report from one of the credit bureaus to make a lending decision, it's called a hard inquiry, and it could lower your credit scores. Multiple hard inquiries can increase the negative impact, so be cautious about submitting one application after another. This is a red flag to creditors, who may see your many applications as a sign of financial distress. This translates into risk, which most lenders try to avoid.\nThere is one exception, however: Most credit scoring models don't ding your score when you're shopping for one type of loan, such as an auto loan, because looking for good terms and the best interest rate is considered good practice. For example, with FICO® Scores☉ , multiple auto loan, student loan or mortgage hard inquiries only count as a single inquiry for scoring purposes when the inquiries occur within a 14- to 45-day window (depending on the type of FICO® Score).  \nHow Long Does It Take to Establish Credit?\n------------------------------------------\nYour credit file is established as soon as your first account gets reported to the credit bureaus. However, building good and useful credit can take some time. For example, FICO can't score a credit report that doesn't have an account that's at least six months old. In addition, if you have fewer than five credit accounts, also known as having a thin file, lenders may not be able to assess your creditworthiness.\nBecause the age of your accounts is a credit scoring factor, the longer you've had open and active accounts, the better (assuming you've been making on-time payments). While this takes time, you're making a long-term investment in your financial future and establishing credit while you're young—which is better than waiting until you need to apply for a rental apartment or loan.\nHow to Monitor Your Credit\n--------------------------\nOnce you've begun establishing credit, you may want to sign up for a credit monitoring service that can help you track changes in your credit reports. You can pay for this service or use a free option, such as Experian's free credit monitoring service, which gives you access to your Experian credit report every 30 days. AnnualCreditReport.com offers one free report every 12 months from each of the three credit bureaus.\nMonitoring your credit is important because if there's a new inquiry or account on your report that you don't recognize, that could be an indication that someone is using your identity to fraudulently open accounts. You'll want to act quickly to file a dispute and resolve the matter.  \nDon't Wait—Start Now\n--------------------\nBy this point, you probably realize why your credit is important and the benefit of establishing your credit as early as possible. The next step is to decide which type of accounts you want to open and how you're going to make sure you can make on-time payments and monitor your progress. Then you'll be on the road to financial independence. END
 TITLE: A Guide to Establishing Credit for the First Time CONTENT: What's the Best Way for a Young Person to Build Credit?\n-------------------------------------------------------\nThere are many ways to build credit, and they all involve creditors reporting your bill payment information to the major credit bureaus: Experian, Equifax and TransUnion. To begin establishing credit if you have none, try one or more of these options:\n#### *   Become an authorized user on a parent's credit card.\nIf one or both of your parents have a good credit history and keep their credit card balance low, you could ask them to add you to the account as an authorized user. As an authorized user, you may or may not have your own credit card for purchases, depending on your agreement with the primary cardholder, but assuming they continue to pay the bill on time and keep their balance low, your credit could benefit. Make sure the card issuer reports authorized-user activity to the credit bureaus, because not all do.\n#### *   Open a student or secured credit card.\nCollege students can apply for a student credit card, which is often easier to get approved for than a non-student card. Whether or not you're in school, you could also consider getting a secured credit card. Secured cards require a security deposit, which typically becomes your credit limit. This makes secured credit cards easier to obtain than regular unsecured cards because the deposit limits the issuer's risk. Some card issuers will transition you to a regular unsecured credit card once you've shown responsible use of your secured card.\n#### *   Pay your student loans on time.\nIf you took out student loans to pay for college, your lender(s) will usually report your accounts and payments to the credit bureaus. Even if you defer making payments until after you leave school, student loans can help you establish credit—as long as you make your payments on time every month once you do start paying them back.\n#### *   Take out a credit-builder loan.\nSome lenders offer loans geared to helping borrowers establish credit. With credit-builder loans, the bank sets aside the loan amount (usually $300 to $1,000), and you receive the money after you've made all the monthly payments. You'll generally have to pay interest on credit-builder loans from banks and credit unions, but some may return all or a portion of that interest once you pay off the loan. Mission Asset Fund offers a no-interest lending circle program, which could help you build an emergency fund and your credit at the same time. In either case, these loans will help you establish credit and show future creditors you are a responsible borrower.\n#### *   Add utility and telecom bills to your Experian credit report.\nIf you're living on your own and responsible for your cell phone bill and utility bills, you can add these accounts to your Experian credit report with Experian Boost™† . Once they're in your report, your on-time payments may improve your credit history and increase your credit scores. END
 TITLE: A Guide to Establishing Credit for the First Time CONTENT: Common Mistakes Young People Make When Building Credit\n------------------------------------------------------\nBuilding credit doesn't need to be difficult, but misconceptions can set you back and cost you money. Young people are often brand new to credit and may be particularly vulnerable to believing credit myths and making mistakes. Here are actions you should avoid:\n*   **Missing payments.** Even one late credit card or loan payment can negatively impact your credit. Setting up automatic payments could help you avoid accidentally missing a payment, but make sure you have the funds in your bank account to pay the bills. Also, if you fall far behind on payments—including utility, phone, medical and other payments—your account could be sent to collections, and the collection agency may report your collections account to the credit bureaus.\n*   **Forgetting about closed accounts.** Similarly, if you close an account that has a balance, such as a utility or cable account when you move, make sure to pay off the balance. Leaving the bill unpaid could result in the account getting sent to collections.\n*   **Taking on too much credit card debt.** Access to a credit card leads some young people to spend more than they can afford to pay off each month. Carrying a balance leads to interest charges, and having a high balance can hurt your credit scores. It's best to treat your credit card as a debit card and only use it for purchases that you can afford to pay off.\n*   **Not paying off credit card balances.** You don't need to maintain a credit card balance to build credit. On the contrary, it's best to pay your bill in full each month to avoid interest charges. Also, paying off your credit card bill each month keeps your credit utilization ratio low. Your utilization ratio, or rate, is the amount of credit you're using compared with how much you have available, and it's an important factor in your credit score. Experts recommend keeping your utilization ratio under 30%. So if you have a card with a credit limit of $1,500, always keep your balance under $500, and pay off your balance when you pay your bill each month.\n*   **Submitting back-to-back loan applications.** When a lender requests your credit report from one of the credit bureaus to make a lending decision, it's called a hard inquiry, and it could lower your credit scores. Multiple hard inquiries can increase the negative impact, so be cautious about submitting one application after another. This is a red flag to creditors, who may see your many applications as a sign of financial distress. This translates into risk, which most lenders try to avoid.\nThere is one exception, however: Most credit scoring models don't ding your score when you're shopping for one type of loan, such as an auto loan, because looking for good terms and the best interest rate is considered good practice. For example, with FICO® Scores☉ , multiple auto loan, student loan or mortgage hard inquiries only count as a single inquiry for scoring purposes when the inquiries occur within a 14- to 45-day window (depending on the type of FICO® Score). END
 TITLE: A Guide to Establishing Credit for the First Time CONTENT: How Long Does It Take to Establish Credit?\n------------------------------------------\nYour credit file is established as soon as your first account gets reported to the credit bureaus. However, building good and useful credit can take some time. For example, FICO can't score a credit report that doesn't have an account that's at least six months old. In addition, if you have fewer than five credit accounts, also known as having a thin file, lenders may not be able to assess your creditworthiness.\nBecause the age of your accounts is a credit scoring factor, the longer you've had open and active accounts, the better (assuming you've been making on-time payments). While this takes time, you're making a long-term investment in your financial future and establishing credit while you're young—which is better than waiting until you need to apply for a rental apartment or loan.\nHow to Monitor Your Credit\n--------------------------\nOnce you've begun establishing credit, you may want to sign up for a credit monitoring service that can help you track changes in your credit reports. You can pay for this service or use a free option, such as Experian's free credit monitoring service, which gives you access to your Experian credit report every 30 days. AnnualCreditReport.com offers one free report every 12 months from each of the three credit bureaus.\nMonitoring your credit is important because if there's a new inquiry or account on your report that you don't recognize, that could be an indication that someone is using your identity to fraudulently open accounts. You'll want to act quickly to file a dispute and resolve the matter.  \nDon't Wait—Start Now\n--------------------\nBy this point, you probably realize why your credit is important and the benefit of establishing your credit as early as possible. The next step is to decide which type of accounts you want to open and how you're going to make sure you can make on-time payments and monitor your progress. Then you'll be on the road to financial independence. END
 TITLE: A Guide to Establishing Credit for the First Time CONTENT: How to Monitor Your Credit\n--------------------------\nOnce you've begun establishing credit, you may want to sign up for a credit monitoring service that can help you track changes in your credit reports. You can pay for this service or use a free option, such as Experian's free credit monitoring service, which gives you access to your Experian credit report every 30 days. AnnualCreditReport.com offers one free report every 12 months from each of the three credit bureaus.\nMonitoring your credit is important because if there's a new inquiry or account on your report that you don't recognize, that could be an indication that someone is using your identity to fraudulently open accounts. You'll want to act quickly to file a dispute and resolve the matter. END
 TITLE: A Guide to Establishing Credit for the First Time CONTENT: Don't Wait—Start Now\n--------------------\nBy this point, you probably realize why your credit is important and the benefit of establishing your credit as early as possible. The next step is to decide which type of accounts you want to open and how you're going to make sure you can make on-time payments and monitor your progress. Then you'll be on the road to financial independence. END
 TITLE: How to Establish Credit If You’re Unscoreable CONTENT: Minimum Requirements for a Credit Score\n---------------------------------------\nThe requirements credit scoring models have to generate a credit score for you depend on the type of credit score. For FICO®'s credit scoring models, you need to have both of the following:\n*   A credit account in your credit report that's at least six months old\n*   Credit activity on a credit account during the previous six months\nThese don't need to be the same accounts. For example, if you pay off a loan, it can stay on your credit reports for up to ten years. If the loan was your only credit account and you paid it off over a year ago, however, then you won't be scoreable after six months because you won't have an account with recent activity. The good news: You could become scoreable again as soon as you open a new account.\nVantageScore's credit scoring models don't require as much information as FICO: You'll be scoreable once you have an account with activity, even if the account has only been active for one month. END
 TITLE: How to Establish Credit If You’re Unscoreable CONTENT: Three Ways to Become Scoreable\n------------------------------\nTaking out a loan or opening a credit card can be difficult if you don't have a credit score. Here are three methods you can use to get around the Catch-22 and become scoreable:\n#### 1\\. Open a secured credit card.\nSecured cards help people with little or no credit history begin building credit. A secured credit card works like a regular credit card, except that you must pay a refundable security deposit to open your account. That deposit typically becomes your credit limit. You still have to pay your monthly bill, and it's important to pay all your bills on time to show a positive payment history on your credit report. The credit card issuer typically reports your account and payments to at least one of the three main credit bureaus.\nA good way to build credit with your secured card without paying interest is to use it for one small purchase each month and then pay off the bill in full before the due date.\nBanks, credit unions and credit card issuers offer secured credit cards. Be sure to compare your options, as some cards charge an annual fee or have high interest rates, while others offer rewards without any annual fees.\n#### 2\\. Take out a credit-builder loan.\nA credit-builder loan is a secured loan that you can use to establish credit. Similar to a secured credit card, you'll need to give the lender a security deposit when you take out the loan.\nWith a credit-builder loan, you'll receive the loan amount after you've made fixed payments on the account until the end of the loan term. The lender will report your loan payments to the credit bureaus, which can help you build credit history. Once you pay off the loan, the lender will return your security deposit.\nYou can usually get credit-builder loans through a credit union, community bank or online lender (and typically not through a large financial institution). Generally, you'll have to pay interest on the loan you receive. But some lenders will place your security deposit in an interest-accruing account and return the full security deposit plus interest, which can help offset the interest you pay on the loan.\nAnother option may be a lending circle loan arranged by the nonprofit Mission Asset Fund. The peer loans are interest-free, and Mission Asset Fund reports your monthly payments to the credit bureaus, which can help build your credit.\n#### 3\\. Become an authorized user on someone else's credit card.\nYou could also ask a family member to add you as an authorized user on one of their credit cards. Depending on the issuer, the card's entire credit history might be reported to the credit bureaus under your name—which can jump-start your credit and make you immediately scoreable—or the issuer might start reporting the account's activity starting from when you became an authorized user.\nWhen you become an authorized user, the card issuer may send you a credit card that's attached to the primary cardholder's account. However, the primary cardholder is legally is responsible for all the charges connected to the account. While you might have an arrangement to pay your portion of the bill, if the primary cardholder misses a payment, the late payment could be added to your credit reports as well.\nGenerally, it's best to only ask a relative who you know is responsible with money to add you as an authorized user. You also want to feel comfortable discussing finances and credit with the person. END
 TITLE: How to Establish Credit If You’re Unscoreable CONTENT: Building Excellent Credit Over Time\n-----------------------------------\nWhile becoming scoreable is an important first step in building credit, credit scoring models consider how long you've been using credit and the average age of your accounts when calculating your credit scores. If your goal is to be in good or excellent credit score ranges, keep at least one open and active credit card. Only use a small portion of your available credit limit, pay your bill in full each month (to avoid interest) and make all your monthly payments on time. Also be sure you make any other loan payments on time every month.\nYou may also be able to improve your score by getting credit for your on-time utility and phone payments. With Experian Boost™† , you give Experian permission to connect to your bank accounts, and once you verify that you want the accounts added to your credit file, you'll see your updated FICO® Score☉ instantly.\nWhile becoming scoreable and improving your credit score can take time, it can save you thousands of dollars in your lifetime, making it well worth the effort. END
 TITLE: How to Start Building Credit After College CONTENT: Know Your Credit Score\n----------------------\nBefore you start making efforts to build your credit, it's helpful to know where you currently stand: one, because knowing your credit profile gives you a better sense of what types of credit products you might be able to currently qualify for; and two, it lets you know your starting point so you can track your progress as your credit scores increase. You can get a free Experian credit report and credit score to find out what kind of shape your credit file is in now, and so you can check it periodically to see how your efforts are paying off. END
 TITLE: How to Start Building Credit After College CONTENT: Start Paying Off Your Student Loans\n-----------------------------------\nIf you're like millions of other U.S. college graduates, you're leaving school with student loans. In the first quarter of 2019, Americans carried, on average, $35,359 per borrower in student loan debt, according to Experian data.\nNo debt? Lucky you—move on to the next section. If you do have them, paying off your student loans can actually help establish credit history since your credit report reflects all of your debts and repayments. Just make sure you pay them back on time so your credit report has positive marks, not negative. END
 TITLE: How to Start Building Credit After College CONTENT: Maintain Smart Financial Habits\n-------------------------------\nOn that note, it's important to be aware of what factors help and hurt your credit. While making on-time payments to your student loans or other forms of debt shows responsible behavior and can help boost your credit scores, making late payments or missing payments altogether can tank it.\nYour credit utilization ratio, which indicates how much of your available credit you're using, is another important factor in your credit score. Creditors view it as a negative if you use more than 30% of your available credit. This means if you take out credit cards, don't charge up all of your available credit lines, and definitely don't max them out. So, for example, if your credit limit is $1,000, it's ideal to keep your balance below $300 at all times. For the best credit scores, keep your utilization below 10%, or $100 in this example. END
 TITLE: How to Start Building Credit After College CONTENT: Become an Authorized User\n-------------------------\nIf your parent or another trusted adult has solid credit, you can ask them to add you to one of their credit cards as an authorized user to jumpstart your credit history. When you're an authorized user, you're essentially a secondary account holder on the primary user's account. While you'll get your own card with your name on it, it's linked to the primary cardholder's account, and it's their responsibility to pay the bill. Because your name is on the account, it will likely show up on your credit report. Be aware that not all credit bureaus report activity from authorized users, so it's optimal to have your own credit card. But if you can't qualify for one, this is a great place to start.\nIf the primary cardholder is savvy with credit—for example, the account has been open awhile, they have a good repayment history and they maintain a low credit utilization ratio—and the account shows up on your credit report, it can help boost your credit. On the flip side, if the primary cardholder doesn't pay their credit card bill on time, it can reflect poorly on your credit, so make sure you trust the person. Also, assuming the primary cardholder is fine with you using the card, be sure you don't do anything irresponsible with it, since it will harm their credit. END
 TITLE: How to Start Building Credit After College CONTENT: Apply for a Credit Card\n-----------------------\nKeep the momentum going by applying for your own credit card account, which is one of the best ways to build credit. Unlike being an authorized user, having your own card gives you full autonomy over the account, and you don't have to worry about anyone else's behavior affecting your credit.\nWhen you're still working to establish your credit history, you might not be able to qualify for a traditional credit card. In that case, you could start with a secured credit card. With this type of credit card, you have to put down a deposit equivalent to your credit limit, and your credit limit will probably be low. But using this card responsibly will help you establish credit and qualify for a regular credit card in time. Some issuers will even automatically convert your secured card to a regular card once you've paid your bills on time for a certain number of months. END
 TITLE: How to Start Building Credit After College CONTENT: Consider a Credit-Builder Loan\n------------------------------\nIf you aren't interested in credit cards, or you just want to build your credit history faster, another tactic is to obtain a credit-builder loan. This isn't a traditional loan; rather than giving you a lump sum, a lender instead puts a balance in a savings account—usually anywhere from $300 to $1,000—that you can't access upfront.\nYou make payments over a set time period, which is typically anywhere from six to 24 months. These payments are reported to the credit bureaus, so when you make timely payments, it helps you establish a positive credit history. Once you've paid the full amount, you get access to the money, and some lenders also return a portion of interest to you. This financial product helps you build credit while also building savings at the same time. END
 TITLE: How to Start Building Credit After College CONTENT: Building Credit Is Worth the Effort\n-----------------------------------\nIt takes some effort to establish a positive credit history after college, but if you follow these tips, you'll be off to a great start. Keep your eyes peeled for other ways to build your credit along the way, such as with Experian Boost™† , which lets you use your cell phone and utility payments contribute to your credit score.\nBuilding a strong credit history at a young age will help you tremendously since employers and landlords typically review credit. It'll also make it easier to obtain an auto loan and mortgage later in life, so get started now. Your future self will thank you! END
 TITLE: How to Help Your Teen Build Credit Now CONTENT: 1\\. Educate Your Teen on Credit Card Basics\n-------------------------------------------\nUnfortunately, personal finance isn't always taught in high school or college. Therefore, it's a good idea to sit down with your teen and teach them how a credit card works and how building good credit can help them in the future.\nIt's also important to warn your teen about the consequences of poor credit and carrying too much credit card debt, and what credit card mistakes to avoid. When discussing credit with them, be sure to keep things simple and stick to the basics, as they may be overwhelmed if you provide them with too much information. To help you study up before talking to your teen, see Experian's Credit Card Basics articles. END
 TITLE: How to Help Your Teen Build Credit Now CONTENT: 2\\. Test the Waters With a Prepaid Card\n---------------------------------------\nBefore you open a credit card for your teen, consider providing them with a prepaid card. A prepaid card can allow them to make purchases while getting used to living within their means.\nBecause prepaid cards come with fees and cannot build your teen's credit history, they should only be used for a short while until your teen has demonstrated good financial habits and you believe they are ready for a credit card. Prepaid cards are more appropriate for younger teens who are in still in high school and learning how to be financially responsible before college. END
 TITLE: How to Help Your Teen Build Credit Now CONTENT: 3\\. Open a Checking Account\n---------------------------\nMost banks and credit unions offer checking accounts for minors or students. These accounts typically have lower fees than standard accounts. By opening a checking account for your teen, you can help them get used to making deposits and keeping track of how much money they have. When you believe your teen is ready, you can add a debit card that's linked to their checking account.\nIf you'd like to monitor your teen's account to make sure they are going down the right path, you can become a cosigner on their account. Keep in mind, however, that if you do cosign your teen's checking account, you'll be responsible if they overdraw it. END
 TITLE: How to Help Your Teen Build Credit Now CONTENT: 4\\. Sign Your Teen Up for a Credit Card\n---------------------------------------\nOnce your teen has proven that they are responsible with a prepaid card or their checking account and debit card, it'll be time to take the next step and sign them up for their first credit card so they can begin building their credit history.\nAccording to the Credit CARD Act of 2009, anyone under age 21 cannot get approved for a credit card without a cosigner or their own source of income. If your child does not work, you'll need to cosign their application.\nYou can also make them an authorized user on your credit card. This is the ideal option if your child is still in high school, as it can help them establish a good credit history while they are living with you and you have more control over their actions. Not all card issuers automatically send payment data to the three main credit bureaus (Experian, TransUnion and Equifax), so when you're considering adding your child to your account, be sure to find out if yours does. END
 TITLE: How to Help Your Teen Build Credit Now CONTENT: 5\\. Consider Opening a Joint Secured Credit Card\n------------------------------------------------\nIf you'd like your teen to have their own credit card but are concerned they may ruin their credit or your own, you can open a joint secured credit card. Because secured credit cards require an initial deposit that serves as the credit limit, doing so will limit the amount of credit available on the card and help them prevent overspending. Although secured credit cards usually carry higher fees than traditional cards, they can still help your teen build credit and provide you with some peace of mind. Some secured credit cards will transition cardholders to a standard unsecured credit card if they maintain good financial behavior with the card. END
 TITLE: How to Help Your Teen Build Credit Now CONTENT: 6\\. Teach Your Teen How to Monitor Their Credit History\n-------------------------------------------------------\nAfter you have either opened a credit card for your child or added them as an authorized user on your card, you'll need to teach them how to monitor their credit history. You may want to show them what your credit reports look like so they know what to expect. Feel free to pull your report or help your child pull theirs by visiting Experian's free credit report page. END
 TITLE: How to Help Your Teen Build Credit Now CONTENT: 7\\. Be a Good Role Model\n------------------------\nTeens learn from their parents' behaviors, so it's important to set a good example for your high school or college student. Practice what you preach and pay your credit cards on time and in full, live within your means, and stay out of debt as much as possible. If your child knows that you practice healthy financial habits, they'll be more likely to do the same. END
 TITLE: How to Help Your Teen Build Credit Now CONTENT: Finding the Right Credit Card for Your Teen\n-------------------------------------------\nTo find the best credit card for your teen, you'll need to do some research. Explore [Experian's CreditMatch™](;k_id=_k_Cj0KCQjw19DlBRCSARIsAOnfRei3kn-eO_MdhalYrPruvmW73yDjpprt_40cKXHe2d0oK4fTmv8XWOoaAvheEALw_wcB_k_&k_kw=kwd-349749736718&k_mt=e&pc=sem_exp_google&cc=sem_exp_google_ad_1619586439_60881488509_308986459108_kwd-349749736718_e_1t1__k_Cj0KCQjw19DlBRCSARIsAOnfRei3kn-eO_MdhalYrPruvmW73yDjpprt_40cKXHe2d0oK4fTmv8XWOoaAvheEALw_wcB_k_&ref=creditcards&awsearchcpc=1&gclid=Cj0KCQjw19DlBRCSARIsAOnfRei3kn-eO_MdhalYrPruvmW73yDjpprt_40cKXHe2d0oK4fTmv8XWOoaAvheEALw_wcB) marketplace to see which cards might be a good fit for your teen, and see this article on the best credit cards for teens. If your teen is in college, you'll likely to find one that is specifically designed for college students. In the event they are still in high school, you'll still find plenty of simple credit cards that can help your teen build credit until they head off to college and beyond. END
 TITLE: Are Credit Cards Safer Than Debit Cards? CONTENT: The Difference Between Credit Cards and Debit Cards\n---------------------------------------------------\nAlthough credit cards and debit cards look and function alike, they're two very different products. Credit cards are equipped with a credit line, which is a fixed amount of money you can borrow from the issuer. After each charge, the issuer pays the merchant, and the amount you can borrow is reduced by that sum. So if the credit line is $2,000 and you charged $500, you'd have $1,500 left to borrow. Pay the $500 before the interest-free grace period ends, and the limit pops back up to $2,000; but pay less, and the amount you owe is rolled over to the next month and interest is added.\nThere is no borrowing involved with debit cards. Rather, they are connected to your checking account, so when you use a debit card, you're tapping into your own pool of funds. After you make a purchase with it, the money is transferred from your bank account to the merchant to pay for what you bought. Every time you use your debit card, the amount in your account declines by the purchase amount. You can add to your checking account at any time. END
 TITLE: Are Credit Cards Safer Than Debit Cards? CONTENT: Separate Laws Limit Your Liability\n----------------------------------\nWhen it comes to consumer protection, different laws come into play. For credit cards, the Fair Credit Billing Act (FCBA) ensures that you won't be responsible for fraudulently opened or used accounts. If someone took your credit card on a shopping spree, the most you'd be on the hook for is $50. In fact, most credit card issuers won't bother with charging you that amount at all. Once the fraud is identified, the erroneous charges are credited back to your account.\nThe law governing debit cards, though, is not quite so powerful. If a person used your debit card without your knowledge or authorization, your liability is protected by the Electronic Funds Transfer Act, which gives you the right to challenge fraudulent transactions. But you'd better act fast. As long as you alert the bank that your card was stolen or compromised before someone uses it, you won't be liable for any of the future transactions. Wait two business days after the fraud and you might have to pay up to $50. Miss that deadline and wait 60 days, and your liability increases to $500. Let 60 days pass and your liability is unlimited, which means all your money in the account that was taken might be lost for good.\nEven if you do report a fraudulent debit card charge in time, reimbursement can take up to two weeks. That can put you in a precarious position. You may not have enough cash to pay for such vital expenses as your rent, mortgage, food or gas. And if it prevents you from paying your credit card and loan bills, a late payment can wind up on your credit report, which will negatively affect your credit scores. END
 TITLE: Are Credit Cards Safer Than Debit Cards? CONTENT: When Is It Safer to Use a Debit Card?\n-------------------------------------\nAlthough the legal protection for debit cards may not be as consumer-friendly as it is for credit cards, there are a couple of compelling reasons to use them.\nFirst, debit cards can help you avoid getting into overwhelming debt. Credit cards are valuable payment tools, but if you use them the wrong way, they can jeopardize your financial health. The average U.S. consumer credit card balance is $6,445, according to Experian data from the fourth quarter of 2018, which is a lot of money to owe. When you owe too much on your credit cards, not only is your bottom line negatively affected, but so are your credit reports and credit scores. Accessible and high credit lines lead an awful lot of people into the hole.\nBy focusing on using a debit card for most of your expenses, you can sidestep this problem. Create a budget so you understand your cash flow needs, and keep enough money in your checking account to meet them. When you're running out of funds, you can pull back from spending.\nSecond, debit cards are also financially safer than credit cards when withdrawing cash. When you use your debit card to get money from your bank's ATM (as well as affiliated ATMs and retailers, such as drug stores and supermarkets), you won't be hit with a cash advance fee. Withdraw cash from a credit card, though, and a fee of 3% to 5% of the amount of you take out will be added to the balance, and interest will start to be accumulated immediately. END
 TITLE: Are Credit Cards Safer Than Debit Cards? CONTENT: When Is It Safer to Use a Credit Card?\n--------------------------------------\nClearly, debit cards have some strong budgetary advantages. But there are a few key areas where credit cards are the winner for consumer protection. For example:\n*   **Online shopping.** Both card types can be used for online shopping, but a credit card is the preferred instrument. You don't want to give savvy thieves who troll the internet access to all the money in your checking account, and then have to wait until it's reimbursed.\n*   **Traveling.** When you're on the road, you'll want access to plenty of \"just in case\" money. If you're limited to only what's in your checking account, you could fall short in case of emergency. Also, if your credit cards are stolen and used, your full credit line will be available to you without delay after you report the theft.\n*   **Purchasing big ticket items.** Credit cards are the ideal option for especially costly purchases, such as electronics and appliances, since the FCBA protects you against disputes. If an item arrives broken or isn't what you expected (and your attempts to work out the issue with the retailer fail), you can request a chargeback from the credit card company and you'll be reimbursed. Some credit cards also offer purchase protection, which insures your purchases against theft, loss and accidental damage. If your credit card has extended warranty protection, you can file a claim even after the original manufacturer's warranty period expires. END
 TITLE: Are Credit Cards Safer Than Debit Cards? CONTENT: How to Stay Safe Without a Credit Card\n--------------------------------------\nPrefer to use your debit card for the bulk of your purchases? No problem, just follow these tips:\n*   **Limit the funds in your checking account.** Don't hold more than you can afford to lose in the checking account associated with your debit card. A good technique is to open two accounts, one for checking and the other for savings, at the same bank. Only keep the amount of money you need to spend in your checking account, then move cash over from your savings account when necessary.\n*   **Be careful with overdraft protection.** With overdraft protection, your bank will tap into a linked source of funds, such as your savings account or a credit card, to cover transactions that exceed the amount in your checking account. The upside is that you'll avoid overdraft fees. The downside is if a thief uses your debit card, that person will then not only be able to grab your money from your checking account, but from the linked account as well. If you're particularly concerned about fraud, you may want to disable this feature.\n*   **Monitor your account statements.** It's always wise to maintain a close watch on all your transactions. On a daily or weekly basis, use your bank's app or review your statements online. Not only will you be able to plan ahead for spending, but you'll also spot any fraudulent activity that you need to address before it can hurt you.\nSo are credit cards safer than debit cards? Regarding consumer protection advantages, the answer is usually yes. But if you want to build a barrier against big credit card balances, which can also be dangerous, a debit card might be the better choice. Having both types at your disposal, however, and using them in an informed way will help you steer clear of danger. END
 TITLE: How Do Small Business Loans Work? CONTENT: What Is a Small Business Loan?\n------------------------------\nSmall business loans are types of financing provided to companies for different purposes by various lenders. Over time, several types of small business loans have evolved to help entrepreneurs meet their goals. Therefore, the way a small business loan works depends on the type of loan in question. END
 TITLE: How Do Small Business Loans Work? CONTENT: Types of Small Business Loans\n-----------------------------\nThere are a variety of small business loans you can consider:\n### Small Business Line of Credit\nA small business line of credit is similar to a credit card. You can borrow up to a certain limit and only pay interest on the amount of money you borrow. If you take out a small business line of credit, you'll be able to draw funds and repay them as often as you'd like as long as you don't go over your credit limit.\n### Accounts Receivable Financing\nAlso known as factoring, accounts receivable financing involves selling your receivables or outstanding invoices to a lender so you can receive early payment for them. The lender takes the risk on your receivables and provides your business with some cash in exchange for a fee. Age and quality of the receivables will play a role in the amount of money you'll receive. While quick access to cash is an advantage of accounts receivable financing, you're likely to pay more for this type of financing than others, especially if your business credit is less than stellar.\n### Working Capital Loans\nUnlike some small business loans intended to pay for long-term assets or investments, working capital loans are used to finance the everyday operations of your business. These operations can include things like rent, payroll and debt payments. Compared with other small business loans, working capital loans feature shorter terms and lower amounts. These loans are sometimes linked to your personal credit, which could take a hit if you don't make your payments on time.\n### Small Business Term Loans\nIf you take out a small business term loan, you'll get a lump sum of capital that you'll pay back at a fixed interest rate with regular repayment terms. In most cases, these types of loans are repaid in five years and used to fund a specific investment for a small business.\nJust like mortgages and car loans, small business term loans usually follow an amortization schedule, meaning most of your payment will go toward your interest at the beginning.\n### SBA Small Business Loans\nSBA loans are small business loans guaranteed by the U.S. Small Business Administration, a federal agency that helps entrepreneurs grow their businesses. A guarantee means that if you aren't able to make your payments to your lender, the SBA will pay out the guaranteed amount.\nThe SBA guarantees 85% of loans that are $150,000 or less and 75% of larger loans. Due to their guarantee, SBA small business loans can be tough to get.\n### Equipment Loans\nEquipment loans can help your small business replace existing equipment or buy new equipment as it grows. If you're a health care business, for example, you may use an equipment loan to pay for things like X-ray machines or infusion pumps. Typically, equipment loans require less documentation than other small business loans, so you can receive funding fairly quickly.\n### Small Business Credit Cards\nWhile a small business credit card is similar to a personal credit card, there are a few noteworthy differences. A small business card may provide you with reporting features so you can categorize and track your spending. It may also feature a rewards program that can help you save on common business expenses like office supplies and marketing services. Additionally, it is exempt from the Credit CARD Act of 2009. END
 TITLE: How Do Small Business Loans Work? CONTENT: Where to Get a Small Business Loan\n----------------------------------\nThere are several different places you can go to for a small business loan, including:\n### Direct Online Lenders\nThere are many online lenders that offer loans directly to small business owners. Since they use the power of technology and algorithms, their loans are quicker to obtain than the loans of traditional lenders like banks.\nHowever, the costs of borrowing with direct online lenders is typically higher. You may want to pursue this route if you need access to quick cash and are having trouble qualifying for a loan from a traditional lender.\n### Large Commercial Banks\nWhile large commercial banks have rigorous requirements for small business loan borrowers, they have the power to offer larger loans than other lenders, which can be very helpful when you're growing your business.\nAnother advantage of taking out a small business loan from a large commercial bank is the chance to lock in low interest rates. Keep in mind that while financing with a commercial bank has its pros, these loans can be challenging to qualify for, especially if you don't have the best credit.\n### Large Community Banks\nCommunity banks are locally owned and operated. Because they are typically smaller than commercial banks, they can provide you with more individualized service, which can be a huge plus as your business grows.\nIn addition, unlike commercial banks, which may solely focus on your credit score and financial statements, community banks are more likely to look at your entire credit report and other aspects of your business. This is a huge advantage if you have a solid credit history but don't have the best credit score.\n### Peer-to-Peer Lending Sites\nSmall business loans from peer-to-peer lending sites such as Prosper and Lending Club are often easier to qualify for than loans from traditional lenders because the money comes from a group of investors instead of a single lender. These types of loans usually come with higher interest rates that can increase the overall cost of your loan.\nHere's how peer-to-peer lending sites work: The P2P lending site acts as the middleman between you (the borrower) and the investors. It can match your loan request with investors' funds. Investors that lend to you will receive the interest you pay on the loan minus the lending site's fee.\n### Bank Lenders Backed by the SBA\nMany SBA preferred lenders are banks that have strict requirements for applicants.\nAlthough SBA loans are difficult to qualify for, they are definitely worth considering, as they come with lower down payment requirements, lower interest rates and longer repayment terms than other options. END
 TITLE: How Do Small Business Loans Work? CONTENT: How to Qualify for a Small Business Loan\n----------------------------------------\nThe process of qualifying for a small business loan involves several steps that we'll outline below.\n### Build Your Personal and Business Credit Scores\nLenders that offer small business loans will take a look at your personal credit score to help them determine whether they should lend you money. Your personal credit shows your ability to repay your personal debts like your mortgage, car loans and credit cards. The higher it is, the less risky you are in a lender's eyes and more likely you are to get approved for a loan.\nSo, what constitutes a good credit score? While a score of 700 or above is considered good, a score of 800 or above is known as excellent. To find out where your credit score stands, visit AnnualCreditReport.com and obtain free copies of your reports from Experian, TransUnion and Equifax. You can also get a free credit report from Experian every 30 days.\nIf your credit score is lower than you'd like it to be, pay your bills on time, pay off debt and keep balances low on credit cards and other revolving credit. Also, refrain from applying for too much credit, as doing so can create multiple hard inquiries in your credit file and have a negative impact on your score.\nOnce you've built your personal credit, it'll be time to focus on your business credit score. To begin establishing business credit, incorporate or form an LLC, obtain a federal Employer Identification Number (EIN), and open business accounts in your business name.\n### Know the Requirements\nBy understanding a lender's minimum requirements and qualifications, you can increase your chances of getting approved for a small business loan. While some lenders may be flexible, most of them require that borrowers meet a minimum credit score, annual revenue and years in business.\nOut of all the types of business loans available, loans from banks and those that are backed by the SBA are the most difficult to qualify for. While the minimum credit score for these types of loans is typically 640, a higher score in the 700s or 800s is preferred.\nWhen it comes to small business loans from direct online lenders and peer-to-peer lending sites, requirements are less stringent. You may be able to get approved with an average or above average credit score in the low to mid 600s.\nIn addition to meeting credit score requirements, you'll need various legal and financial documents to complete the application paperwork. These documents will likely include things like your driver's license, a voided business check, bank statements, profit and loss statements, business and personal tax returns, and a business plan.\n### Develop a Business Plan\nThe purpose of a business plan is to show lenders how you plan to use your money. Your business plan will help convey the purpose of your loan and how you believe it will help you become more profitable. When creating your business plan, make sure to include the following information:\n*   Business description\n*   Product or service description\n*   Market analysis\n*   Management team\n*   Sales and marketing strategy and implementation\n*   Financial plan and projections\n### Provide Collateral If Required\nSome lenders require you to provide collateral or an asset like real estate, equipment or inventory to take out a small business loan. When you provide collateral, you give lenders the right to seize and sell it if your business struggles and you are unable to make your payments.\nTo take out an SBA-backed loan, for example, you must offer collateral in addition to a personal guarantee (from each owner, if there's more than one) of at least 20% of the business. This personal guarantee puts your assets and credit score at risk.\nIf you're worried about losing an asset or don't have one, an unsecured business loan, which does not require collateral, may make more sense—even though it may come with less favorable terms. END
 TITLE: How Do Small Business Loans Work? CONTENT: Know Your Options\n-----------------\nGetting approved for a small business loan is a lot easier when you've done your research and know all of the options available to you. Regardless of what type of loan you receive, make it a priority to pay it back on time so that it helps rather than hurts your venture. END
 TITLE: What Is Tier 1 Credit? CONTENT: What Does Tier 1 Credit Mean?\n-----------------------------\nLenders designate credit tiers as part of what's called risk-based pricing. Using criteria such as credit score, current debts and income, they employ this method to determine what interest rates and terms they'll offer a particular borrower. Borrowers who are most likely to repay their debt—and thus present the least risk to the lender—are offered the lowest interest rates and best terms. These borrowers fall into the lender's tier 1 credit range.\nBorrowers who present more risk to the lender will fall into lower credit tiers and will pay higher interest rates and possibly additional fees on a loan or credit card. When a borrower's application is approved but they receive less-favorable terms due to information on their credit report, the lender is required by law to send them a risk-based pricing notice. The lender provides this notice verbally, electronically or in writing after they've determined the rates and fees on a loan but before the borrower has accepted them. After viewing the notice, the borrower can decide whether to accept the loan under the terms offered. END
 TITLE: What Is Tier 1 Credit? CONTENT: What Credit Score Do I Need for Tier 1 Credit?\n----------------------------------------------\nYour credit score is a three-digit number lenders use to help determine your creditworthiness. While most consumers have many credit scores, lenders typically use a version of the FICO® Score☉ or VantageScore® when determining how likely a borrower is to repay debt. These scores range from 300 to 850, with higher numbers meaning better credit.\nSo what credit score do you need to attain that coveted tier 1 status? There's no single answer. Each lender uses its own calculations and level of risk tolerance to decide which borrowers get the best rates. So while you may be a tier 1 borrower with one lender, you may have tier 2 or tier 3 status with another.\nIn FICO's scoring model, scores in the 800 to 850 range are considered exceptional, or best. A given lender, however, may consider scores in the 750 to 850 range as best and categorize those borrowers as tier 1. Another lender might have a completely different range it considers tier 1.\nWhile it may be a slight mystery where you fall on a certain lender's tier scale, working to improve your credit will give you the most chance of reaching tier 1 status. END
 TITLE: What Is Tier 1 Credit? CONTENT: How to Get Tier 1 Credit\n------------------------\nThere are plenty of actions you can take to improve your credit score and work toward achieving excellent credit. Here's how:\n### Pay Your Bills on Time\nGet into the habit of paying every bill on time. Payment history is the biggest factor in calculating your credit scores, and thus your credit tier, so make this a top priority. Even one late payment on your mortgage, credit card or other bill can lower your credit score, so on-time payments are essential.  \n### Pay Down Debt\nPaying down debt is easier said than done, but carrying large balances on your credit cards raises your credit utilization ratio—the amount of debt you have relative to your total available credit. Most lenders prefer a utilization ratio of 30% or less, but the lower the better.\nWhat can you do to pay off debt? Reducing your debt load can be a long process, but your first step should be to review your existing accounts so you know exactly what you owe. Next, create a budget that allows you to put as much money as possible toward paying down your debts.\n### Apply For and Open New Credit Accounts Only As Needed\nWhile it may be tempting to open new credit accounts to make major purchases or to take advantage of promotional credit card offers, frequently applying for credit can take a toll on your credit score. Carefully consider whether a new account is justified, as credit applications require a lender to pull your credit report, resulting in a hard inquiry. Too many hard inquiries on your credit report will lower your credit score.\n### Dispute Any Inaccuracies on Your Credit Reports\nCheck your credit reports with the three major credit bureaus (Experian, TransUnion and Equifax) for any information that shouldn't be there. Incorrect information may indicate fraud or identity theft. Make sure that all of the accounts listed on your reports are correct and dispute any inaccuracies to get them resolved as soon as possible. END
 TITLE: What Is Tier 1 Credit? CONTENT: Achieving Tier 1 Credit Is Possible\n-----------------------------------\nIf you don't have tier 1 credit but wish you did, know that hard work and persistence can get you there. Since tier 1 credit can qualify you for the best rates and terms on auto loans, achieving it can save you money down the road, so it's a worthwhile goal. END
 TITLE: What is Peer-to-Peer Lending? CONTENT: How Peer-to-Peer Lending Works\n------------------------------\nPeer-to-peer (P2P) loans are made available through online platforms that pair potential borrowers with investors willing to issue loans. You might say that P2P platforms bring borrowers and lenders together the way Uber and Lyft match riders to drivers, or the way eBay connects buyers and sellers. A key difference is that P2P borrowers and investors never deal with each other directly; the P2P platforms handle all elements of the transactions, including determining loan eligibility, setting interest rates and fees, as well as collecting payment.\nLeading P2P lending sites for personal loans include Prosper, Lending Club and Peerform. All of them provide opportunities for individuals to apply to borrow funds or to become investors who issue loans. Funding Circle takes the same approach but offers small business loans instead of personal loans. END
 TITLE: What is Peer-to-Peer Lending? CONTENT: How Does Peer-to-Peer Lending Differ From Traditional Loans?\n------------------------------------------------------------\nThe main appeal for P2P borrowers is that they'll generally find lower interest rates than are typically available through traditional lenders like banks or credit unions. But P2P lenders offer borrowers other advantages as well:\nThe P2P loan application processes typically take only takes a few minutes, which makes it easy to shop around for the best deal.\nThat shopping process is also gentler on your credit scores than applying for traditional loans, because P2P preapproval screenings, which generate offers including loan amount and interest rates, use soft inquiries to check your credit report. A soft inquiry, which also happens when you check your credit score yourself, does not affect your credit score. By contrast, a hard inquiry is made when you apply for traditional loans and typically causes a small reduction in credit scores.\nIf you accept a P2P loan offer, the lender will likely make a hard inquiry on your credit report before you get final approval. But up to that point, you can compare offers from P2P lenders to your heart's content without any effect on your credit report—something that's not possible with more traditional loans. END
 TITLE: What is Peer-to-Peer Lending? CONTENT: Are Peer-to-Peer Loans a Good Idea?\n-----------------------------------\nEvery peer-to-peer lending platform has its own criteria for deciding who qualifies for a loan, and their requirements can be more strict or more diverse than those of traditional lenders. Minimum credit score requirements may be higher, for instance. In addition to (or possibly instead of) credit scores, P2P lenders also may have steeper income requirements, or want evidence of your educational credentials or job history.\nLoan amounts available from P2P platforms typically max out around $40,000 to $50,000 and are offered only to applicants deemed highly creditworthy. Many loans fall into the range of $10,000 to $25,000.\nIf you meet a given lender's requirements, you can get a lower interest rate than you'd get from a traditional lender, which can make P2P loans very attractive for debt consolidation or any other purpose for which you'd seek a personal loan. END
 TITLE: What is Peer-to-Peer Lending? CONTENT: How to Get a Peer-to-Peer Loan\n------------------------------\nGetting a peer-to-peer loan is a two-stage process. First, based on your credit score and submission of basic background info—name, address, date of birth and income—the lender determines how much it's willing to lend you, and at what interest rate. (It's possible, of course, that they'll decide against making any offer; if that happens, they'll explain why.)\nIn the course of reviewing your options among the growing number of P2P platforms, here are a few things to consider:\n*   **Read the fine print.** Look on the bottom of each provider's homepage for an overview of the loan amounts they offer and the rates and fees they charge.\n*   **Make sure each lender operates in your state.** Not all P2P lenders do business in every state; and some have lending restrictions and procedures that apply on a state-by-state basis. You'll find that information in the homepage fine print.\n*   **Check your FICO® Score☉** **and review your credit reports.** Look out for any major negative entries. Accounts in collection and recent late payments could hurt your approval chances, even if you meet credit score requirements.\n*   **Beware of upsells.** If you qualify for a larger loan amount than the one you request, some P2P sites will encourage you to consider borrowing even more. There's nothing wrong with increasing your loan amount if you can afford it, but keep in mind that even low interest loans can be costly over time.\nOnce you choose a lender and accept its offer, the lender typically does a more detailed credit check (including a potential hard inquiry). The lender also may ask you to verify your income and to provide additional background information. In most cases, you can submit the necessary information electronically.\nThe site may take several days to finalize its lending decision. If you get final approval, you'll set up a payment process—most P2P lenders prefer automatic payments from a checking account. The funds can appear in your bank account within a few days.  \nDo Peer-to-Peer Loans Show Up on a Credit Report?\n-------------------------------------------------\nGenerally speaking, peer-to-peer lenders report payment information to credit bureaus, just like traditional creditors do. That means timely payments on a P2P loan will tend to improve your credit score over time, and late or missed payments will hurt your credit score.\nP2P lenders can be quicker than their traditional counterparts to submit overdue payments to collections agencies. While most traditional lenders wait at least 90 days before charging off unpaid accounts and selling them to third-party collection agencies, some P2P lenders initiate third-party collections after as little as 30 days of delinquency. Late payments and collections entries on your credit report have significant negative impacts on your credit score, as lenders view them as indications of poor credit management.\nPeer-to-peer lending outlets make it extremely easy to shop for loan offers, and qualifying borrowers can expect interest rates and fees that compare favorably with those of traditional lenders. END
 TITLE: What is Peer-to-Peer Lending? CONTENT: Do Peer-to-Peer Loans Show Up on a Credit Report?\n-------------------------------------------------\nGenerally speaking, peer-to-peer lenders report payment information to credit bureaus, just like traditional creditors do. That means timely payments on a P2P loan will tend to improve your credit score over time, and late or missed payments will hurt your credit score.\nP2P lenders can be quicker than their traditional counterparts to submit overdue payments to collections agencies. While most traditional lenders wait at least 90 days before charging off unpaid accounts and selling them to third-party collection agencies, some P2P lenders initiate third-party collections after as little as 30 days of delinquency. Late payments and collections entries on your credit report have significant negative impacts on your credit score, as lenders view them as indications of poor credit management.\nPeer-to-peer lending outlets make it extremely easy to shop for loan offers, and qualifying borrowers can expect interest rates and fees that compare favorably with those of traditional lenders. END
 TITLE: The Difference Between a Money Order and a Cashier’s Check CONTENT: The Differences Between Money Orders and Cashier's Checks\n---------------------------------------------------------\nThe major difference between cashier's checks and money orders is their cost and where they're purchased. Money orders are typically offered in smaller amounts, can be bought at many different locations and cost just a few dollars. Cashier's checks, on the other hand, are often issued in large amounts, can be purchased from your bank and cost a little more to get.\nDepending on what you're using the money for, here is a little information about the differences between the two payment options:\nA **money order** is essentially a prepaid piece of paper, similar to a check, that you get in exchange for cash. You can use them to send people money, and recipients can easily deposit them into their bank accounts. Many places sell money orders, including the post office, Walmart and Western Union, as well as various supermarkets and convenience stores. Money orders cost just a few dollars and can typically be obtained for amounts up to $1,000.\nA **cashier's check** is similar to a money order, but is issued by a bank and requires a bank account. When you get a cashier's check, your bank will either hold or remove the funds from your account and give you a bank-issued check in the amount you request. Cashier's checks can be used just like a money order or personal check; the only difference is that since the funds are guaranteed by a bank and already removed from your account, recipients can have immediate access to the funds. Cashier's checks, while more expensive than money orders, may be considered more trustworthy as they are backed by a bank, but can still be obtained for just a few dollars—typically under $10. END
 TITLE: The Difference Between a Money Order and a Cashier’s Check CONTENT: When to Use a Money Order\n-------------------------\nUnlike a personal check, when you give someone a money order, they know the funds are guaranteed. With a normal check, it typically takes a few days before recipients can access the money because the receiving bank has to make sure the sender has enough to cover the amount. Use a money order in situations where you need to pay someone and need the payment to be secure but available immediately.\nBecause a money order is prepaid and backed by a third party, it can be used for situations where you need to provide immediate funds, but still want to do it securely. For example, you could use a money order when paying for something at the Department of Motor Vehicles, where funds need to be transferred on the spot. When you fill out a money order, you'll sign it and select a recipient, creating an official record and making it a more secure option than cash.\nMoney orders can also be advantageous for people without a bank account. If you have bills or need to make an official payment, money orders offer a secure way to send money without needing to have a bank account. It depends on where you buy it, but some issuers allow you to use a credit card, check or debit card to purchase a money order. Check with your issuer before purchasing to be sure. END
 TITLE: The Difference Between a Money Order and a Cashier’s Check CONTENT: When to Use a Cashier's Check\n-----------------------------\nCashier's checks are typically used when you need to make a large purchase and are asked to bring guaranteed funds—like when you are closing on a home or purchasing a new car. Rather than carrying around a bag of cash, cashier's checks offer a great way to securely transport and facilitate large payments.\nCashier's checks are also great options for people with bank accounts who need to make payments with certified funds. To get a cashier's check, you'll have to go to your bank and first make sure you have enough funds to cover the check amount. (The bank will hold your funds until the check is cashed.) You'll then ask the teller for the cashier's check, give them the recipient's information and pay the fee associated with the check. END
 TITLE: The Difference Between a Money Order and a Cashier’s Check CONTENT: Protecting Against Money Order and Cashier's Check Fraud\n--------------------------------------------------------\nAlways make sure you are purchasing your money orders and cashier's checks from reputable vendors. And remember to fill out your information on the money order to avoid anyone stealing it or using it for other purposes. Also keep your receipts for certified checks and money orders; that way, if you need to stop the funds for some reason, you can contact the issuer and follow their instructions for cancelling the payment.\nAlso watch out for situations where you may be accepting money orders from another party. These documents, while secure if authentic, can be easily forged and may fool an unsuspecting eye.\nTo learn more about protecting yourself from fraudsters, check out Experian's guide on fraud and identity theft. END
 TITLE: The Difference Between a Money Order and a Cashier’s Check CONTENT: Understanding Your Total Financial Picture\n------------------------------------------\nWhile cashier's checks and money orders are great for certain situations where certified funds are required, relying on conventional banking options might be better for everyday payments. Using a credit card or debit card for bill payments, or using a bill pay option with a bank, can be easier, will cost you nothing and in many cases will be more secure than the certified option.\nOpening a checking account can be easy, and once you have one, consider using autopay and bill pay to make all of your payments securely each month. If you don't already have one, think about also getting a credit card that can help you earn valuable rewards points while you spend. Credit cards are accepted by nearly all merchants and are helpful for making secure payments.\nIf you're thinking about applying for a credit card, make sure to get a free copy of your credit reports and scores from Experian so you can understand what's in your credit file. To learn more about understanding your credit reports and what's in them, see \"Understanding Your Experian Credit Report.\"\nWhile using a cashier's check or money order may be unavoidable in certain situations, conventional banking options for payments may be simpler—and could help you improve your financial future. END
 TITLE: How to Fill Out a Money Order CONTENT: Steps to Filling Out a Money Order\n----------------------------------\nTo start, you'll need to know where to purchase a money order. You can get money orders from a variety of places, including your bank or credit union, grocery and convenience stores, post offices and even check-cashing companies.\nWhen buying a money order, you'll need to provide payment upfront, typically in the form of cash, a debit card or your bank account if you're going through your financial institution. In some cases, you may be able to buy one with a credit card, but it's not recommended because your credit card issuer may classify it as a potentially costly cash advance. Depending on where you go, you may be assessed a fee, which can be anywhere from under $1 up to $5. Here are the steps to buying a money order:\n1.  Write the name of the person or business you're paying. Make sure to use the right name and spell it correctly because it will likely be checked against the recipient's ID when they try to cash it.\n2.  Write your address in the purchaser section (not the recipient's address).\n3.  Include information in the memo line, such as what the money is being used for or your account number if you're paying a bill. This step is optional.\n4.  Sign the money order on the signature line to make it official.\n5.  Keep the receipt you receive from the merchant until you can confirm the money order has been received and either cashed or deposited. This step is crucial because it allows you to cancel the money order if necessary or retrieve it if it goes missing. If the recipient says they never got the money order, the receipt will act as proof that you sent it.\nIf you're concerned about getting any of these steps wrong, ask the person processing your money order for assistance. END
 TITLE: How to Fill Out a Money Order CONTENT: Similar to a personal check, a money order can be cashed at most banks and credit unions, though you might have to pay a fee if you're not a member. You can also cash a money order at the company that issued it, such as Western Union or a grocery store.\nBecause a money order is valid only for the specified recipient, you'll need to present a current form of ID to cash it. That means a driver's license, passport, state ID or military ID that matches the name on the money order. If the name doesn't match, you'll need the person who paid for the money order to cancel it and re-order it. END
 TITLE: How to Fill Out a Money Order CONTENT: Pros and Cons of Money Orders\n-----------------------------\nA money order is just one of many different ways to pay, but there are some benefits to using one over other options, including:\n*   They're safe and secure to mail.\n*   Legitimate ones won't bounce like a personal check.\n*   You don't need a bank account to buy one.\n*   You can send them domestically and internationally.\n*   Funds will be available immediately.\nThat said, there are some potential issues that may cause you to opt for an alternative payment method. Drawbacks include:\n*   The payment you can make typically maxes out at $1,000.\n*   In most cases, you need to purchase one in person.\n*   They can be easily falsified or altered.\n*   Fees vary depending on where you buy one.\nOne popular alternative to a money order is a cashier's check. These are only available from your bank or credit union, which means you need an account, but they allow for larger transactions. You'll typically pay a fee for this payment type too. Another option is to set up a wire transfer. This can be especially beneficial if you're sending money abroad, and it may be required in some financial transactions, such as closing on a home.\nIf you'd prefer, peer-to-peer payment methods are gaining adoption by both individuals and businesses. An app like Zelle, Cash App or Venmo might be the most convenient way to make a payment (even a large one) as long as you and your recipient are comfortable using it. END
 TITLE: How to Fill Out a Money Order CONTENT: How to Protect Yourself From Money Order Scams\n----------------------------------------------\nJust like most other forms of payment, money orders are subject to scams. Money order scams come in many forms. For example, someone may send you a bogus money order as payment for an item. You receive the money order and deposit it, then ship the item, only to have your bank claw back the money when they realize the payment method was fraudulent.\nOr the scammer may send you a fake money order to pay for an item, then ask you to send some or all of the money back because they're experiencing a financial emergency.\nOn the other end of things, you may want to buy something online from a vendor that only accepts money orders. In this case, you may send the money order and never receive the item. By the time you realize what's happened, the money is long gone. You can cancel a money order and get a refund in some instances, but don't bank on that—especially if the money order has been cashed.\nBefore sending out a money order, verify that you're giving the money to a reputable vendor of goods and services. If a business only accepts money orders, that's a good cue to vet them a little more thoroughly before buying.\nWhen you're the one receiving a money order, call the issuer to ensure the money order is valid before attempting to cash or deposit it. If you deposit a money order you aren't sure is real, don't spend the money right away. It can take a bank several days or longer to determine whether a money order is fake, and if you've already spent the money, you could be charged overdraft fees if the amount hasn't yet been deposited into your account.\nFinally, if someone sends you a money order and then asks for some or all of the money back, that may be a clear sign that it's fraudulent. Don't send them any money, and work with your bank until the issue is resolved. END
 TITLE: How to Fill Out a Money Order CONTENT: Be Diligent When Sending Money to Anyone\n----------------------------------------\nIn most cases, you can make payments using credit cards, debit cards and cash, which all provide relatively safe transactions. If you fall victim to credit card fraud, for instance, most card issuers offer zero-liability fraud protection.\nWith money orders, it's important to be smart about when to use them. In most cases, it's best only if you know the recipient, whether it's a person or a company. As with any form of payment, make sure you trust the recipient of your payment. If you feel skeptical, do more research or avoid making the payment altogether. END
 TITLE: How Do Business Credit Card Balance Transfers Work? CONTENT: What Is a Balance Transfer?\n---------------------------\nA balance transfer credit card allows you to transfer a balance from one credit card onto another credit card that has a lower interest rate, or annual percentage rate (APR). Typically, balance transfer cards offer 0% APR on the balance transferred for an introductory period, such as 12 months. By moving debt from a higher-interest credit card to the balance transfer card, you give yourself time to pay off the debt without incurring additional interest. The longer the introductory period lasts, the more time you'll have.\nSuppose you transfer a $10,000 balance from a business credit card with a 21.95% APR (the average maximum APR for business credit cards as of September 2020) to a card offering 0% intro APR for 12 months. Assuming you pay off the balance within 12 months and don't make any additional purchases on the new card, you would save $2,195 in interest. Once the introductory APR period is over, however, your new credit card's APR will climb, and any balance you carry will start accruing interest.\nBusiness credit card balance transfers work the same way as consumer credit card balance transfers. You find a business credit card that has a good balance transfer offer and complete an application. Once you're approved—which generally requires good to excellent credit, or a FICO® Score☉ of 670 or above—the credit card company determines a credit limit. When you request a balance transfer, the new credit card company pays off the balance being transferred and moves it onto your new card. There's usually a balance transfer fee of 3% to 5% of the amount being transferred; this fee gets rolled into your new balance on the new card. END
 TITLE: How Do Business Credit Card Balance Transfers Work? CONTENT: What Are the Benefits of Using a Business Balance Transfer Credit Card?\n-----------------------------------------------------------------------\nUsing a balance transfer card can benefit your business in several ways.\n*   **Less interest**: Transferring your balance to a business credit card with a lower APR can reduce the total amount of interest you pay. This frees up money you can use for other business needs or to pay off existing debt.\n*   **Greater convenience**: If you're carrying balances on multiple high-interest business credit cards, transferring all of the balances onto one balance transfer card helps consolidate your debt. This can make it easier to keep track of payment due dates and avoid missing a payment, which could hurt your credit score.\n*   **Lower credit utilization**: A balance transfer could lower your credit utilization rate, or the amount of debt you use compared with your available credit. A credit utilization ratio of more than 30% can negatively affect your credit score. Using our earlier example, if the card with a $10,000 balance has a credit limit of $20,000, your credit utilization rate on that card is 50%. Moving the debt to a balance transfer card with a $40,000 credit limit would reduce your credit utilization ratio on the first card to 0%, and the new card would have a credit utilization ratio of 25%. This could improve your credit score.\n*   **More available credit**: Getting a new business credit card increases the total amount of credit available to your business. This can offer the flexibility you need to cover unexpected business expenses or take advantage of opportunities quickly without having to apply for a business loan or line of credit. END
 TITLE: How Do Business Credit Card Balance Transfers Work? CONTENT: Are There Drawbacks to Business Balance Transfer Credit Cards?\n--------------------------------------------------------------\nThere are some potential drawbacks to using a balance transfer credit card.\n*   **Balance transfer fees**: You can sometimes find business credit cards that don't charge a balance transfer fee, but in most cases, you can expect to pay 3% to 5% of the amount transferred. To decide if paying a balance transfer fee is worth it, weigh the amount you'll save in interest against the fee. For instance, with a $10,000 balance transfer, you could expect to pay $300 to $500 in balance transfer fees, depending on the terms of the credit card. If you have a 5% balance transfer fee and pay off the balance before the 0% APR period ends, you will still save at least $1,695 ($2,195 in interest saved minus a $500 balance transfer fee).\n*   **Potential for more debt**: Paying off the transferred balance before it starts accruing interest is key to saving money with a balance transfer. Also keep in mind that many balance transfer cards also have different APRs for purchases than for transferred balances, so using the card for new purchases could rack up more interest or even nullify the intro 0% APR on the transferred balance. You can look for a card that offers a 0% introductory APR on both balance transfers and purchases, or make sure you avoid making purchases on the balance transfer card at least until the promotional period ends. Check your card's terms to find out exactly how purchases can affect your intro rate.\n*   **Reduction in average account age**: A long, positive credit history is a factor in a good credit score; getting a new credit card will reduce the average age of your credit accounts. To minimize the impact of the new credit card, keep the old account open, even if you aren't planning to use it anymore. This will also help increase your available credit and reduce your credit utilization rate.\n*   **Hard inquiry on your credit report**: Applying for a balance transfer card will generate a hard inquiry on your credit report. A hard inquiry has a minor impact on your credit score that typically lasts for a few months. However, several hard inquiries in a short time period could have a more serious negative effect on your credit. Avoid applying for multiple business credit cards or other types of credit at the time you're applying for a balance transfer card. END
 TITLE: How Do Business Credit Card Balance Transfers Work? CONTENT: How Do Balance Transfers Impact Your Credit Score?\n--------------------------------------------------\nA business credit card can have more of an impact on your credit score than a personal credit card. Most business credit card agreements include a personal guarantee, meaning you—not your business—are personally responsible for any charges on the card. (That's one reason credit card issuers generally consider your personal credit score when evaluating your application for a business credit card.)\nPersonal credit cards report to the three major consumer credit reporting agencies—Experian, TransUnion and Equifax. Depending on the card issuer, a business credit card may report to the consumer credit bureaus, the commercial credit bureaus (Experian Business, Dun & Bradstreet and Equifax), or both. (You can find out by asking the credit card issuer before you apply for the card.)\nIn short, the way you use a balance transfer business credit card can help or hurt both your business's credit score and your own. If your business credit score suffers, your business might have a harder time getting favorable terms from new vendors, using credit to pay suppliers or borrowing money from the bank.\nA balance transfer on a business credit card could help improve your credit score by:\n*   Saving money on interest and helping you pay down debt faster\n*   Increasing your available credit\n*   Reducing your credit utilization rate\nA business credit card balance transfer might hurt your credit score by:\n*   Lowering the average age of your credit accounts\n*   Tempting you to accrue more debt\n*   Generating a hard inquiry on your credit report END
 TITLE: How Do Business Credit Card Balance Transfers Work? CONTENT: Best Business Credit Cards for Balance Transfers\n------------------------------------------------\nThe best business balance transfer credit card for you depends on several factors, including the amount and length of the introductory APR, the balance transfer fees and the amount of the APR after the introductory period ends. Also keep in mind that in most cases, you can't transfer a balance from one credit card to another from the same issuer.\nBe sure to compare credit card interest rates and read the fine print before applying for a balance transfer card. Some cards require that if you make any purchases, you must pay your balance in full each month—including the transferred balance—or start accruing interest. Other cards will revoke your introductory APR if you have a late payment.\nIt's getting more difficult to find business balance transfer credit cards, but here are two to consider:\nThe **U.S. Bank Business Platinum Card** offers 0% intro APR on both balance transfers and purchases for 15 billing cycles. After that, the variable APR will be 9.99% to 17.99%. You'll need excellent credit to qualify for this card, so check your credit score before you apply to make sure you can qualify.\nIf approved, you'll need to act quickly; transfers must be made within the first 30 days of account opening. There is a 3% balance transfer fee ($5 minimum), but no annual fee with this card. Although the U.S. Bank Business Platinum Card does not offer rewards, its long 0% introductory APR period makes it a good tool for paying off a high balance. Just keep in mind that if you make a late payment, make a payment that's returned or go over your credit limit, you may lose your introductory APR.\n**The Wells Fargo Business Platinum Credit Card** features an introductory 0% APR on both purchases and balance transfers for the first 9 months. Once the introductory period ends, your variable APR will be Wells Fargo Prime + 7.99% to Wells Fargo Prime + 17.99% depending on your personal and business credit. Balance transfers must be done either by using one of three enclosed welcome checks that arrive with your welcome letter or by calling customer service to request a balance transfer; there is a balance transfer fee of 4% ($10 minimum).\nThe Wells Fargo Business Platinum Credit Card offers rewards in the form of cash back or points (you choose). Earn a one-time $500 cash back bonus or 50,000 bonus points by enrolling in the Business Card Rewards Program and spending $5,000 in the first 3 months after opening your account. END
 TITLE: How Do Business Credit Card Balance Transfers Work? CONTENT: Beyond Balance Transfers: Other Ways to Save\n--------------------------------------------\nIf you can't qualify for a balance transfer business credit card, consider these ways to reduce debt, save money and carve out more cash to put toward your high-interest business credit card balances.\n*   **Identify and reduce nonessential spending.** For example, you probably have subscriptions, memberships or fees that are being charged to your business credit card monthly or annually. Eliminating or cutting back on these expenses can help you save.\n*   **Compare prices on business services.** This could include insurance, phone services, internet and more. You may be able to cut costs by switching providers.\n*   **Negotiate with suppliers.** Can you agree on a reduced rate for paying early or paying in cash? You might even be able to barter products or services with some suppliers in lieu of cash.\nIf you have a good credit score, getting a business credit card with a favorable balance transfer APR can help you save money, pay down business debt and access more credit. But these cards can be hard to find, and not everyone can qualify. Before using a balance transfer credit card, carefully weigh the trade-offs between the potential savings and fees. Then make a commitment to paying off the balance before the introductory period expires.\n_All information about the U.S. Bank Business Platinum Card has been collected independently by Experian and has not been reviewed or provided by the issuer of the card._ END
 TITLE: Is It More Important to Pay My Business Credit Card or My Personal Card? CONTENT: What's the Difference Between a Business and a Personal Credit Card?\n--------------------------------------------------------------------\nBusiness credit cards are designed to help you finance entrepreneurship, though they do not shift responsibility from you to your company. In fact, most issuers embed a personal guarantee into the agreement that permits it to hold you liable for repayment of any debt you accrue with the card, even if all the charges were for your business.\nBusiness credit cards may be reported to commercial credit bureaus, such as Experian Business and Dun & Bradstreet, as well as the three major consumer credit reporting bureaus—Experian, TransUnion and Equifax.\nPersonal credit cards, on the other hand, are for individuals to use. Your name is associated with the account, and as the owner you are fully responsible for the payments and debt. Personal credit cards can only be listed on your consumer credit reports, so they will have no direct impact on your business credit.\nPersonal credit cards are also covered by a number of consumer protection policies that don't apply to business cards. The Credit CARD Act is a federal law that was designed to protect consumers, but it only applies to personal credit cards. Among other things, it requires credit card issuers to communicate interest rates clearly and consistently, and to provide advance notice if they plan to change rates. END
 TITLE: Is It More Important to Pay My Business Credit Card or My Personal Card? CONTENT: What Happens if You Don't Pay Your Business Credit Card?\n--------------------------------------------------------\nIf you fall behind on your business credit card payments, you will be assessed a late fee, and the issuer can increase your APR without delay. This \"penalty rate\" may apply to your card indefinitely, potentially making a big difference in how much you'll pay to carry a balance. The issuer can also lower your credit limit if it chooses.\nLate payment notices will appear on any credit report the issuer sends information to, which can affect not only your business credit rating but your consumer credit as well. If the debt remains unpaid, the account may be suspended or closed and sent to collections. The card's issuer or a collection agency may also pursue legal action. Any business partners on the account will experience the same credit and legal consequences.\nNot having access to your business credit card can be serious. If you're like many small business owners, you rely on credit to keep your operations running smoothly. You may need easy access to a high charging limit to do things like purchase expensive machinery or buy products in bulk, and then pay over time. Without the ability to borrow using your business credit, you may be in a bind the next time cash runs short. END
 TITLE: Is It More Important to Pay My Business Credit Card or My Personal Card? CONTENT: What Happens if You Don't Pay Your Personal Credit Card?\n--------------------------------------------------------\nJust like a business card, not paying at least the minimum payment on your personal card can have some major, and immediate, consequences. Penalties can apply after just one day and include a late fee, a penalty APR on new purchases or promotional 0% interest offers being rescinded.\nAs payments get later, consequences get more severe. When you start missing 30-day billing cycles, the issuer can note payments as delinquent on your consumer credit reports. After 60 days, the issuer can apply the penalty APR to your card's total balance, though it's required to revert to the original APR if you pay on time for six months after that.\nPersonal credit card accounts face the same collection and legal consequences as business accounts.\nWhat happens with your personal credit card affects only your consumer credit rating. But since lenders may check your consumer credit reports when you apply for business loans and credit cards in the future, your personal creditworthiness can still have business consequences. END
 TITLE: Is It More Important to Pay My Business Credit Card or My Personal Card? CONTENT: What to Do if You Are Struggling to Pay Both\n--------------------------------------------\nIt's best to keep both business and personal credit cards in good standing if possible. Your first step is to determine if you can meet the payments by constructing a budget, then paring down spending or increasing income until you can bridge the shortfall. Try to stretch yourself so you can cover at least the minimum payments.\nStill no way to satisfy your cards' respective payments? Call your credit card issuers and ask for help. You may be able to make lower or no payments for a few months so you can get back on your feet without any problems. If one issuer allows you to suspend payments without any negative effects, you can concentrate on another card that doesn't offer the same break.\nTake a look at your finances beyond your credit cards and see where cutbacks can provide some extra funds. Remember, you don't need to completely pay off your credit card bill to avoid consequences; making even the minimum payment is enough to satisfy credit card issuers. If you still need to decide on paying one card over the other, consider the consequences.\nIf the account is jointly held and someone else will suffer if the account isn't paid as agreed, be sure to notify that person before it goes delinquent. They may be willing to step in and make the payments when you can't.\nIf you find yourself overwhelmed with credit card debt and none of the above measures are helping, try getting assistance from a professional. Credit counseling agencies exist to help stressed-out borrowers. A credit counselor can create a payment plan to help you stay on your feet while also paying your bills. END
 TITLE: Is It More Important to Pay My Business Credit Card or My Personal Card? CONTENT: Monitor Your Credit Throughout the Process\n------------------------------------------\nFinally, keep an eye on your credit reports as you manage your debt. You'll want to see how payments are being reported, both good and bad. Obtain a free copy of your consumer Experian report or get a copy of your Experian business credit report to understand how your accounts are showing up. When you're in a stronger financial position, you will know what you need to concentrate on so you can raise your credit rating. As a small business owner, you'll want to do what it takes to build and keep great credit—with a business as well as a personal credit card. END
 TITLE: What Are the Current Interest Rates on Student Loans? CONTENT: Interest rates for federal loans adjust every year. According to Federal Student Aid, an office of the U.S. Department of Education, the rates for the 2018-2019 school year are:\n*   5.05% on direct loans for an undergraduate program.\n*   6.6% on direct loans for graduate and professional programs.\n*   7.6% on direct PLUS loans. Parents usually take these loans to help their children with college expenses.\nOn the other hand, the interest rates attached to private student loans are set by the financial institutions (banks, credit unions and online lenders), and these rates are in a constant state of flux. The rates for private undergraduate loans may range from a low of 4.20% to 13.49% today, but they probably won't stay this low or high tomorrow. END
 TITLE: What Are the Current Interest Rates on Student Loans? CONTENT: How Federal Student Loan Interest Rates Work\n--------------------------------------------\nAlthough the U.S. Department of Education sets the federal loan interest rates for each school year, the numbers are not random. The rates are based on the U.S. Treasury 10-year notes, and then a couple of percentage points are added on as a margin. So if the note is 3% and 2.05% is added, your student loan's interest rate is 5.05%.\nThe good news for people who are new to borrowing money (as most young students are) or who have damaged credit histories, is all federal loans except the PLUS loans are exempt from a credit check. The requirement is you must be a part- or full-time college student—there really aren't any hoops you need to go through. Just complete the Free Application for Federal Student Aid (FAFSA) and wait to see what you're qualified to receive.\nAdditionally, the interest rates on federal loans are always fixed, so your rate will stay the same for the lifespan of the loan—unless you refinance or consolidate the loan (but that would be your choice, not the lender's). END
 TITLE: What Are the Current Interest Rates on Student Loans? CONTENT: How Private Student Loan Interest Rates Work\n--------------------------------------------\nIf you're interested in private loans, you will have to apply with a lender and meet the eligibility standards. The lender will review your income and check your credit history and credit scores. If you appear to be a poor credit risk, you could be denied, while if you appear to be a good credit risk, you'll likely be accepted. The interest rate you're offered will be on the lower end of the scale if your credit history is positive, and higher if it's not so fabulous.\nPrivate students loans can have fixed or variable interest rates. If it's a loan with a fixed rate, it follows the same rules as the federal loans: The rate won't budge unless you refinance or consolidate.\nIf your private student loan's interest rate is variable, however, it can fluctuate over the term. Variable interest rates are tied to a short-term index rate (usually the prime rate or London Interbank Offered Rate), and a margin is added to that figure. When those index rates go up or down, so will the interest rate on your loan.\nFor example, if the prime rate is 5.50%, and the margin is 1.9%, the variable rate will be 7.4%. Not too bad, right? Yes, for now. If an index's rate rises, which can happen monthly, quarterly or annually, so will the rate on your loan. Some variable rate private loans come with a cap, which prevents the rate from going over a certain percentage point. END
 TITLE: What Are the Current Interest Rates on Student Loans? CONTENT: Loan Terms Affect the Amount of Interest Paid\n---------------------------------------------\nEven when your student loan's interest rate is fixed and super low, it will still cost you plenty in financing fees if the term is long.\nImagine you borrowed a grand total of $50,000, and the average interest rate is 5.95%. If you paid the loan off within 10 years—the normal repayment term for a federal direct loan—with monthly payments of $554, the total interest you would pay is $16,462! Yet if you were to delete it in five years (and increase the payments to $966), the interest paid would be $7,929. That's still a lot, but not as expensive as the first option.\nTherefore, before you agree to only send the bare minimum payments, play around with the numbers and see if you can increase the payments on a regular basis. END
 TITLE: What Are the Current Interest Rates on Student Loans? CONTENT: How to Reduce Student Loan Interest Rates\n-----------------------------------------\nWhether your student loan is federal or private, there are a few ways to reduce the rate you have.\n*   **Consolidate**. If you have federal loans with interest rates that are higher than what is currently being offered, you may repackage them with a federal direct consolidation loan to get a lower overall rate. There is no extra fee to do this, but you can't include private loans in the mix.\n*   **Refinance.** If you have an excellent credit history, you may also be able to refinance your existing private student loans with a new loan at a lower rate. There could be an origination fee involved, but it can still work out in your favor if the interest rate is significantly lower.\n*   **Pay on Time.** Want to be rewarded for being responsible? You will be if you pay your federal student loans on time. You could receive an interest rate reduction of 1% after 36 months of perfect payments, and 2% after 48 months.\n*   **Enroll in Direct Debit.** To ensure on-time payments, the vast majority of lenders, from federal student loan servicers to private lenders, will give you a break if you enroll in automatic payment systems. The payment is debited from your checking account on a certain day of the month, then delivered to the lender without you having to do anything but monitor your statements. As an incentive, the lender may reduce the interest rate by .25% or even .50%.\nStudent Loans and Your Credit Report\n------------------------------------\nYour student loans will appear on your credit report as soon as they're granted, so it's extremely important that you keep them in good standing and monitor your reports and scores to make sure there are no errors. Your student loans will have a positive impact on your credit scores when you manage them well. You can guarantee that will happen by maintaining a perfect payment history—and as the balance recedes, your credit scores will likely rise! END
 TITLE: What Are the Current Interest Rates on Student Loans? CONTENT: Student Loans and Your Credit Report\n------------------------------------\nYour student loans will appear on your credit report as soon as they're granted, so it's extremely important that you keep them in good standing and monitor your reports and scores to make sure there are no errors. Your student loans will have a positive impact on your credit scores when you manage them well. You can guarantee that will happen by maintaining a perfect payment history—and as the balance recedes, your credit scores will likely rise! END
 TITLE: Best Instant Use Credit Cards of 2021 CONTENT: #### American Express® Gold Card\nThe American Express® Gold Card is a premium cash back card that comes with a variety of cardholder benefits. However, it's important to remember that unlike typical credit cards, the American Express® Gold Card only lets you carry a balance for certain charges—not all of them.\nUsing the card, you can receive:\n*   4 points per dollar on dining\n*   4 points per dollar on up to $25,000 spent per year at U.S. supermarkets\n*   3 points per dollar when you book flights with an airline or on amextravel.com\n*   1 point per dollar on other purchases\n*   $10 in Uber Cash each month\n*   $10 monthly statement credits for Grubhub, Seamless, Boxed and partners\nWhile there's a $250 annual fee, the card's high earning potential and statement credits make it a good fit for some. Plus, new cardholders can earn an intro offer for 60,000 Membership Rewards points after making $4,000 worth of eligible purchases within the first 6 months.\n> You may be matched with this and other cards at Experian CreditMatch™\n> \n> [Find Out If You're Matched](;refUrl=%2Fmember%2Foffers&br=exp&op=FRSC-ASK-ART-100-ILT-XXXXXXX-XX-EXP-XXXX-XXX-1528XX-43579X-XXXXX&dAuth=true) END
 TITLE: What Should I Know Before I Borrow Money? CONTENT: Why Borrowing Money Is Risky\n----------------------------\nThe positives of borrowing money are clear in certain instances: It may allow you to attend the college of your dreams or help you buy your first home, for example. But having a new debt you need to make payments on can also create extra financial risk. Here are some of the dangers tied to borrowing money:\n*   **Damaging your credit**: Whether you have a loan or a credit card, making late payments or missing payments can cause your credit score to fall. This matters because your credit is considered nearly anytime you apply for a new loan or credit card, and could be considered when you apply for a rental property, utilities and even a new job.\n*   **Extra costs**: If you use your credit card but don't pay off the balance every month, you'll pay interest on the charges—which could add up to thousands of dollars over time if you're not careful. You could also incur other costs such as late fees if you're late on a payment. These may be small, such as $25 for a late credit card payment, but these penalties can add up.\n*   **Taking on too much debt**: It's easy to get in over your head with debt, whether it's from running up credit card balances or trying to manage several loans at once, such as a student loan, car loan and mortgage. If your income can't cover both your debt payments and ongoing expenses, you may get trapped in a cycle of debt.\n*   **Going into collections**: If a debt goes unpaid for a long stretch, it may go into default and then into collections. Not only does this process further damage your credit, but it can be immensely stressful dealing with debt collectors and trying to figure out a path forward.\n*   **Losing your collateral**: With secured loans, you run the added risk of losing your collateral, such as a car or home. This isn't the case with unsecured loans, such as a personal loan or student loan, since there's no tangible object a lender can repossess from you.\n*   **Wage garnishment or bankruptcy**: Regardless of whether your debt is secured or unsecured, in the worst-case scenarios, consistent failure to pay could lead to the lender securing wage garnishment against you. Or, you may have no other choice but to declare bankruptcy, which causes lasting damage to your credit. These serious consequences can make it very difficult to get back on track with your financial goals. END
 TITLE: What Should I Know Before I Borrow Money? CONTENT: Risks of Using Loans and Credit Cards\n-------------------------------------\nCertain types of debts carry unique risks. Here's what you need to know before you borrow money in the form of a car loan, mortgage or credit card. END
 TITLE: What Should I Know Before I Borrow Money? CONTENT: How to Reduce the Risks of Borrowing Money\n------------------------------------------\nNow you know how certain borrowing decisions can harm your credit and endanger your financial well-being. Here's the good news: You can take measures to safely borrow money and avoid these pitfalls, and they can even help improve your credit in the process.\n*   **Check your budget before you borrow.** Before you take out a secured or unsecured loan, carefully review the estimated monthly payments and make sure they fit neatly within your budget to help you avoid becoming overextended.\n*   **Avoid impulse spending.** Credit cards make impulse shopping all too easy, so try to ensure what you put on the card is necessary and can be paid off immediately. This helps keep you accountable and avoid costly interest payments. Plus, keeping your credit card balance (and therefore your credit utilization rate) low can help improve your credit score.\n*   **Pay your bills on time, every time.** When you make on-time payments, you help strengthen your credit, avoid late fees and reduce chances of falling behind on your borrowing obligations. If you tend to forget to pay your bills, set up monthly calendar reminders or turn on autopay to make it a no-brainer.\n*   **Consult the experts.** If you're unsure whether you can safely afford a new loan or line of credit, it's better to get expert advice than guess and be wrong. Consider meeting with a financial advisor or credit counselor before you make any big moves to make sure you're not taking on more than your budget can reasonably handle. END
 TITLE: What Should I Know Before I Borrow Money? CONTENT: Keep Tabs on Your Credit\n------------------------\nMost forms of borrowing money will impact your credit, for better or for worse, depending on your financial habits. If you make responsible decisions, such as paying bills on time and keeping credit card balances low, your credit score is likely to improve over time. Monitoring your credit, which you can do for free with Experian, can help you track changes to your score and credit report, and notice how various factors impact your credit. END
 TITLE: What Is Contactless Pay? CONTENT: How Does Contactless Payment Work?\n----------------------------------\nWe're used to swiping our cards or sticking them in a chip reader at the checkout counter, but both payment methods require touching a machine, or in some cases, giving your card to a cashier to insert or swipe it for you.\nContactless payment allows you to bypass that and instead simply hover or tap your card or phone on a reader. The payment is processed quickly via wireless communication and the rest of the transaction proceeds as usual.\nContactless payments are often faster and more convenient for customers and retailers alike, but purchases made in the U.S. are still by and large done \"the old way.\" While U.S. credit card issuers haven't issued as many contactless cards, merchants have been reluctant to adopt the new technology and cardholders may be unsure how to use it.\nBut it's getting there and is expected to grow as more card issuers have recently begun issuing contactless payment cards and wearable technology that allows contactless payments becomes more widely used. A big step forward for the technology's adoption happened recently when New York City rolled out contactless pay for its public transportation system. END
 TITLE: What Is Contactless Pay? CONTENT: *   **Wells Fargo Platinum card**: You can pay off your purchases with this card over an extended introductory 0% APR period of 18 months on purchases before the standard APR of 16.49% to 24.49% (Variable) kicks in. This card also offers cellphone protection: Use this card to pay your monthly phone bill and you can be reimbursed for up to $600 ($25 deductible) if it's damaged or stolen.\n*   **Chase Freedom Flex℠**: In addition to its contactless payment feature, this card offers a generous 5% cash back rate on up to $1,500 in purchases in rotating categories that change every quarter. Not only that, you'll get 3% cash back at restaurants (including takeout and eligible delivery orders) and from purchases made at drug stores. For 15 months, you'll pay 0% APR on purchases, then a variable APR of 14.99% to 23.74% once the introductory period is over. END
 TITLE: What Is Contactless Pay? CONTENT: Benefits of Contactless Payments\n--------------------------------\nContactless payments have many advantages. They include:\n*   **Convenience**: Contactless payment is generally faster than swiping or inserting a card. Also, if you use a digital wallet, you don't even need to have your physical credit card with you for small purchases. This is handy if you've misplaced your card or don't want to bring your physical wallet with you.\n*   **Security**: When you pay using contactless technology, you aren't handing your card to a stranger or inserting it in a machine, which means you can't become a victim of credit card fraud via skimming or shimming. Your card never leaves your hand. Plus, the transactions are encrypted and unique to each purchase, which protects your data.\n*   **Physical distance**: Especially important during the ongoing coronavirus outbreak is that contactless payments allow you to avoid physical contact with other people. You don't have to hand your card to someone else or touch a machine that other people have touched; you simply hold your card or phone next to a payment terminal. END
 TITLE: What Is Contactless Pay? CONTENT: Find a Contactless Card\n-----------------------\nLooking for a new contactless credit card? Use [Experian CreditMatch™](;br=cm&dAuth=true) to get matched with a credit card based on your credit profile. Once you're matched with cards, do some research to find one that comes enabled with contactless technology. Once you get your new card, familiarize yourself with how to use it as a contactless payment method and you're ready to go! END
 TITLE: How to Maintain Your Credit During a Crisis CONTENT: Monitor Your Credit\n-------------------\nCredit reports impact numerous areas of our lives. They help lenders decide whether to approve you for loans and credit cards, and what interest rate and terms you'll receive. Landlords and employers often review credit reports during the application process to assess your financial stability. And utility and cellphone companies may check your credit when you apply for a new account.\nIf you haven't checked your credit report in a while, now is a good time. In addition to gaining a better sense of where your finances stand, monitoring your credit report regularly can help you spot fraud and identity theft, which can be prevalent during times of crisis.\nYou're legally entitled to check your credit reports with each of the three major credit bureaus—Experian, TransUnion and Equifax—for free once a year at AnnualCreditReport.com. But due to the COVID-19 pandemic, you can now check your reports for free weekly through April 20, 2022. While your three reports generally will be similar, it's important to check them all to ensure they are accurate. A good strategy is to check your report from one of the three bureaus every four months so you can periodically ensure any new information that appears is correct.\nYou can also get a free credit report directly from Experian, which comes with several other benefits. These include free credit monitoring with daily alert notifications, information on what's helping and hurting your credit score, and more.\nWhen reviewing your report, if you see any accounts listed that you didn't open, you can report it swiftly before more damage is done. It's important to remember that accounts such as credit cards can appear under different names depending on the bank or other institution that manages the account. Double-check to make sure an unfamiliar provider isn't actually a legitimate account you own or have cosigned for.\nIf you find anything on your credit report you believe is inaccurate, you can dispute that information. Keep in mind that you must dispute it with each credit bureau where the inaccuracy occurs. You can start the dispute process online with Experian. END
 TITLE: How to Maintain Your Credit During a Crisis CONTENT: Contact Your Lenders\n--------------------\nDuring a financial crisis, continue to pay all your bills on time as usual if at all possible. But if you're struggling to make ends meet due to income loss or other circumstances resulting from the crisis, don't skip your payments or pay late.\nInstead, contact your lenders immediately to inform them of your situation and ask if they have any hardship options. Sometimes during major disasters or crises, lenders offer impacted customers helpful options such as temporarily lowering interest rates or payment amounts, pausing payments for a set time, or placing loans in deferment. You must be proactive, however: Most lenders won't come to you with these options; you need to go to them.\nIf it looks like you will also struggle to pay utility and service bills, such as your cellphone, internet or electricity bill, contact your providers right away. Inform them of your situation and ask if they can offer flexible payment options or any other assistance in light of the crisis. END
 TITLE: How to Maintain Your Credit During a Crisis CONTENT: Evaluate Your Current Financial Situation\n-----------------------------------------\nDuring a crisis like the coronavirus pandemic, it's important to know your financial state. Check your account balances and assess how much you have in checking, savings and in debt. Estimate how far your savings will go if you or your partner becomes unemployed and how much more you might need to set aside for an emergency. You may want to adjust your budget and redirect at least some of your disposable income to savings or debt to help you weather current or potential reductions in income.\nAn economic downturn may prompt you to reevaluate your investment strategy, particularly if you're close to retirement. But it may not be the best time to make drastic moves with investment and retirement accounts, especially if it's an emotional or impulsive decision. If you're not sure how to best evaluate your current financial situation and adjust accordingly, consult an expert, such as your company's 401(k) representative. Depending on your situation, a certified financial planner, investment advisor or credit counselor can help you make a plan that will give you peace of mind. END
 TITLE: How to Maintain Your Credit During a Crisis CONTENT: Stay Proactive and Plan Ahead\n-----------------------------\nDuring times of crisis, desperation can lead to spikes in scams and identity theft, so it's especially important to protect your identity. In addition to regularly reviewing your credit report, you can take more proactive measures such as putting a fraud alert on your credit report if you are a victim or think you may become a victim of identity theft.\nA fraud alert instructs creditors to take extra measures to verify your identity when they are processing an application for credit. It only takes a few minutes to add a fraud alert to your credit report, and placing an alert with one of the three consumer credit bureaus (Experian, TransUnion or Equifax) triggers alerts at the other two. If you want to remove a fraud alert, however, you need to do so with each bureau separately.\nIt's also smart to plan ahead financially as much as possible. If you haven't already created one, this might mean making a budget to help you see where your money goes each month and set aside savings in an emergency fund. If you lose your job or find yourself with unexpected expenses, this savings can help you get by and avoid taking on more debt.\nYou can also tighten your existing budget to help you weather the hard times more easily. This could look like cutting back on gym memberships or streaming services and setting aside more for savings or debt payments. This way, if you lose income or face an unexpected expense, your expenses will be lower and you'll have more savings to fall back on.\nIf you're looking for ways to improve your credit during a crisis, there are a few strategies that can help. Making payments on time (even just the minimum), keeping balances down on your credit cards and avoiding too many new credit applications will all go a long way toward keeping your credit sound and help prepare you to be in a stronger financial position once the crisis subsides. END
 TITLE: Should You Use a Credit Card for Everyday Purchases? CONTENT: Perks of Using Credit Cards for Everyday Purchases\n--------------------------------------------------\nUsing your credit card for daily spending rather than just occasional purchases often comes with several major benefits. Keep in mind, though, you should use your credit card for purchases you already would have made otherwise, and to never spend solely in pursuit of rewards or other benefits. Use your credit card as you would a debit card or cash, on purchases such as groceries, gasoline and utility bills. Here are some of the perks of using credit: END
 TITLE: Should You Use a Credit Card for Everyday Purchases? CONTENT: How Using Your Credit Card Everyday Can Impact Credit Scores\n------------------------------------------------------------\nAs we mentioned, using your credit card for your everyday spending has plenty of benefits—but you should always carefully monitor your spending to prevent it from becoming a drag on your finances and credit. Here's what to watch out for: END
 TITLE: Should You Use a Credit Card for Everyday Purchases? CONTENT: Best Credit Cards for Day-to-Day Purchases\n------------------------------------------\nIn the market for a credit card that's perfect for everyday shopping? There are many factors to consider as you shop around, including your specific needs and spending habits. Here are a few popular credit cards ideal for day-to-day spending, none of which have an annual fee.\n*   **Blue Cash Everyday® Card from American Express**: Get 3% cash back at U.S. supermarkets (up to $6,000 in purchases per year, after which you'll get 1% cash back), 2% at U.S. gas stations and select U.S. department stores and 1% on everything else. If you're seeking additional rewards and don't mind paying a $95 annual fee, consider Blue Cash Preferred® Card from American Express.\n*   **Capital One® VentureOne® Rewards Credit Card**: Get 1.25 miles per dollar spent, which can be redeemed for all types of travel. If you want a higher rate of return and don't mind paying an annual fee, check out the Capital One® Venture® Rewards Credit Card. END
 TITLE: Should You Use a Credit Card for Everyday Purchases? CONTENT: Tips for Using Your Credit Card Responsibly\n-------------------------------------------\nIf you've only ever used credit cards occasionally, it can be an adjustment to switch to using it in place of a debit card for everyday purchases. Make sure to follow these tips on using a credit card wisely:\n*   Aim to keep your credit utilization ratio at 30% or lower, and never max out your card.\n*   Don't buy things you can't afford; credit makes it easy to live beyond your means, but this is not sustainable. Only charge what you can pay off at the end of the month.\n*   Make on-time payments. Late and missed payments harm your credit, whereas a history of on-time repayment helps build positive credit. If you're likely to forget to pay your bill, set up calendar reminders or automatic payments for at least the minimum payment amount. END
 TITLE: Should You Use a Credit Card for Everyday Purchases? CONTENT: Find the Right Credit Card for Your Wallet\n------------------------------------------\nIf none of your credit cards have reward programs appealing enough that you want to use it every day, consider trying Experian's CreditMatch™ tool. You'll get customized credit card offers based on your current scores that won't impact your credit. END
 TITLE: What Is a Cash Back Credit Card? CONTENT: What Are the Different Types of Cash Back Cards?\n------------------------------------------------\nThere are several varieties of cash back credit cards, and which one is best for you depends on your spending behavior, credit scores and other factors. Here are the main types of cash back cards:\n*   **Flat rate card**: Some cash back cards offer a flat rewards rate, which means no matter how much you spend or what you buy, you will earn the same percent back—often 1%. Flat-rate cards don't give you a ton of earning potential, but are a no-brainer if you prefer to always know what you'll get.\n*   **Tiered card**: If you're hoping for a higher earning potential from your cash back program, consider a tiered card. With this type of rewards credit card, purchases earn a different rate of cash back depending on what you buy or where you buy it. For example, you might earn 3% cash back for every purchase on travel and restaurants, 2% on groceries and 1% on everything else. If you're a frequent traveler, or a frequent diner, it could be smart to get a card like this that gives you a higher rate of cash back for a category you're already spending a lot of money in.\n*   **Bonus category card**: Still other cash back rewards cards offer rotating bonus categories. With these cards, there's typically a low flat rate (such as 1%) for most purchases, but higher rates (usually 3% to 5%) for spending in bonus categories that may change every month or quarter. For example, you might get that higher cash back rate for every gas purchase one quarter, then the next quarter you'll get an additional bonus for spending at restaurants. These cards take a little more work since you have to stay on top of the changing offers, and some issuers require you to register for the bonus categories in order to get them. END
 TITLE: What Is a Cash Back Credit Card? CONTENT: How Does Cash Back Work on Credit Cards?\n----------------------------------------\nSome credit cards have rewards programs that earn you points or miles that can be redeemed for travel or merchandise. But if you prefer a simpler program, and more direct access to cash rewards, you're better off with a cash back card.\nCash back credit cards work by essentially giving you a rebate on your purchases. Typically, your issuer will give you the choice of how you receive the cash back: You can usually choose either to have it applied to your balance as a statement credit or as direct deposit to a checking or savings account. Some card issuers also still allow you to receive it as a check.\nDepending on your card, you may also have the option to redeem your cash back rewards for other things, such as gift cards, travel reservations or merchandise. Before you apply for a cash back card, read the terms carefully so you understand your reward redemption options. END
 TITLE: What Is a Cash Back Credit Card? CONTENT: How Do I Choose the Right Cash Back Card?\n-----------------------------------------\nWith so many appealing cash back cards available these days, it can be hard to narrow down the best option for your wallet. Be aware that a good to excellent credit score is typically required to qualify for the best cash back credit cards, so if your credit isn't stellar, you might need to work on improving it first.\nAs you compare cash back cards, first look at some of the basic terms that you would review anytime you're shopping around for a new credit card. The card's annual percentage rate (APR) is an important factor, especially if you plan to carry a balance. A high interest rate can take a bite out of your cash back rewards, so consider a low interest credit card if you don't think you'll be able to pay off your balance every month.\nNext, check to see if there's an annual fee. Annual fees are another expense that can take away from your cash back earning potential, but paying a fee could be worth it on high rewards rate cards. Some card issuers waive annual fees for the first year you have the card, so be sure to reassess the card's value once the fee kicks in.\nOnce you've narrowed down your list a bit, it's important to closely compare the cards' benefits and rewards programs. Take a close look at the terms of each cash back program since they can vary significantly from card to card, with different limits or exceptions that may change the appeal of the card.\nAs you're going over card terms, keep an eye out for rewards restrictions or limits: Some cash back cards put a cap on how much you can earn in certain categories. For example, you might earn a quarterly cash back bonus rate on up to $1,500 in gas station spending, with any spending beyond that earning the regular rate. Read the card terms carefully before you apply to avoid any surprises.\nYou may also want to consider if there's a sign-up or intro bonus, which some cash back cards offer as incentives. These bonuses typically provide a sizable cash reward if you spend a certain amount within a few months of opening the card. END
 TITLE: What Is a Cash Back Credit Card? CONTENT: How to Use Your Credit Card Responsibly\n---------------------------------------\nEarning cash back is a great perk of some credit cards, but you can't let that benefit lure you into irresponsible spending behavior. Make sure you're familiar with how credit cards work and how to use them wisely and to your benefit rather than your detriment.\nSpending in excess just to earn rewards isn't a smart strategy, since that spending will almost certainly cost more than the benefit of the cash back. Plus, if you spend beyond your means and end up carrying debt, you'll have to pay interest on it, which will further negate the potential cash back rewards.\nThe smartest way to use a cash back card is on everyday purchases you would have made anyway (like the ones that would normally go on your debit card). Then, pay off these purchases every month in full and on time every month. This way you'll get the most out of your rewards card without paying interest or accruing debt.\nThere's another reason why carrying a balance in the name of rewards is a bad idea: Having a high credit utilization ratio can hurt your credit. Your credit utilization ratio measures how much credit debt you have compared with your total available credit limit, and it plays a big role in your credit score. A ratio above 30% can make you look riskier to lenders and creditors and harm your credit score. END
 TITLE: What Is a Cash Back Credit Card? CONTENT: Find Out if You'll Qualify\n--------------------------\nThe perks of a cash back credit card can be substantial if they're used on everyday purchases and paid off quickly. However, these cards are difficult to qualify for if you don't have excellent credit. Not sure where your credit score currently stands? Check your credit report for free on Experian.\nWhen the time comes to find a cash back rewards credit card, Experian CreditMatch™ can pair you with a card that suits your goals and credit score. END
 TITLE: Can You Use a Credit Card on Venmo? CONTENT: It's possible to use a credit card on Venmo, but you'll face a few restrictions. For example, you won't be able to add a credit card if it's already linked to another Venmo account, and you won't be able to transfer money from your Venmo balance to a credit card.\nAnother big difference to keep in mind is that you'll pay a 3% fee to send money on Venmo using your credit card. That's in contrast to using your bank account, debit card or Venmo balance, which is totally free.\nAdditionally, when you pay your friends and family via credit card, Venmo warns that card issuers could code the transactions as cash advances—which means an additional set of fees, often a minimum of $5 or $10. Cash advances also don't come with an interest-free grace period; they begin accruing interest immediately, sometimes at a higher APR.\nWhen it comes to buying from a business, Venmo transactions may be coded as purchases, thereby avoiding the additional fees and interest. Still, it's worth checking with your issuer before adding a credit card to your Venmo account. Fees won't be charged when using Venmo to purchase an item from one of the company's partner businesses. In that case, the business will cover the transaction fees so you won't have to, even if you're using a credit card. END
 TITLE: Can You Use a Credit Card on Venmo? CONTENT: 6 Tips for Using Venmo Safely\n-----------------------------\nWhether you're paying on Venmo with your bank account, debit card, Venmo balance or credit card, you should follow some basic precautions to help keep your money and identity secure.\nHere are six tips for using Venmo safely:\n1.  Create a strong password. When it comes to your financial accounts, one of the easiest ways to protect yourself is creating a complex password. Avoid dictionary words, instead selecting a series of lower- and uppercase letters, numbers and symbols.\n2.  Add additional security measures. By setting up a PIN, biometrics and multi-factor authentication, you'll make it much more difficult for fraudsters to gain access to your account.\n3.  Only Venmo those you trust. Venmo's user agreement states you should only transact with \"people you know and trust.\" If you send a stranger money—either due to error or a scam—you'll have a tough time getting it back.\n4.  Stay on top of notifications. Opt into text notifications that immediately alert you to account activity, such as transfers or attempted logins, so you'll know if something fishy is going on.\n5.  Avoid public Wi-Fi. Never sign into your Venmo account while connected to a public Wi-Fi network. Hackers have been known to set up spoof networks or compromise existing ones in order to steal login details and other personal information.\n6.  Go private. With Venmo's default settings, your payment activity is public, offering identity thieves a sneak peek at your financial habits. Changing your settings will keep your transactions private.\nIf you ever notice a potentially fraudulent Venmo transaction, contact a customer service representative as quickly as you can. The Venmo app has a built-in chat feature you can use to get help.  \n4 Alternative Mobile Payment Services\n-------------------------------------\nNot thrilled with Venmo? No sweat: You've got plenty of other mobile payment services at your fingertips. Here are several other platforms to consider:  \n### Google Pay\nThough Google Pay is mostly used for shopping online or in stores, you can also use it to send money to your loved ones. You can't, however, use credit cards to fund such P2P transactions. You can only use bank transfers or debit cards, neither of which will trigger a transaction fee.\n### Zelle\nUnlike other mobile payment apps, Zelle allows you to send money directly from one checking account to another. The recipient doesn't need to be a Zelle user—and, if your bank is one of its partner institutions, you won't need to download an app. Best of all, sending payments via credit card doesn't incur any fees.\n### PayPal\nSending money to friends and family is free if the money comes from your PayPal balance or a bank transfer, but if you want to pay with a credit or debit card, you'll get hit with a 2.9% fee (plus a flat charge that can vary). If you're paying in U.S. dollars, the flat charge is 30 cents.\n### Cash App\nCash App has several unique features, including the ability to get your paychecks two days early, sign up for a free debit card that works in stores and at ATMs, and invest in stocks or Bitcoin. Just want to send money to friends? You'll pay a 3% fee to use a credit card; transfers funded via debit card or bank account are free.\nHow to Decide Whether to Add Your Credit Card to Venmo\n------------------------------------------------------\nThere's no doubt about it: Venmo and other P2P payment services are incredibly convenient, and often free of charge. Unless, of course, you're using a credit card—in which case you'll usually pay a fee to do so.\nWhen deciding whether to add your credit card to your Venmo account, you'll need to weigh the added security versus the added fee, and decide which one matters more to you. END
 TITLE: Can You Use a Credit Card on Venmo? CONTENT: How to Decide Whether to Add Your Credit Card to Venmo\n------------------------------------------------------\nThere's no doubt about it: Venmo and other P2P payment services are incredibly convenient, and often free of charge. Unless, of course, you're using a credit card—in which case you'll usually pay a fee to do so.\nWhen deciding whether to add your credit card to your Venmo account, you'll need to weigh the added security versus the added fee, and decide which one matters more to you. END
 TITLE: What Are the Benefits of a Credit Union? CONTENT: Credit unions are founded on the philosophy of people helping people, says Stephen Lark, vice president of marketing and corporate development for Communication Federal Credit Union, located in Oklahoma City, Oklahoma. \"We look at fee structure and locations to make sure \\[they\\] benefit the greater good,\" he says. In fact, when you join a credit union, you become an owner, and that status translates into certain privileges:\n*   **Lower rates on loans and credit cards.** Credit unions offer some of the best rates on credit products such as car loans, mortgages and credit cards. They provide fee-free checking accounts and savings accounts, too, without requiring a substantial minimum balance. That can be a huge relief when your funds dip into the single digits.\n*   **More forgiving qualification standards.** If you don't have a credit history or do but it's damaged, you could have serious trouble scoring a credit card or loan with a low rate from a bank. Credit unions are more forgiving of people in this position. \"When a member applies, we run their credit to see who they owe and how much, and check to see if they've paid their bills on time,\" says Angie Coleman, chief marketing officer for Jax Federal Credit Union, which serves the Northeast Florida community. \"If they're having problems, we don't just say no—we work with the member so they will qualify.\"\n*   **A powerful presence in the community.** If you love where you live and the people in your profession, joining a credit union can be a wonderful way to take part in their betterment. The credit union might award grants and scholarships to worthy local students, such as Alliant Credit Union in Chicago, or sponsor local fundraisers, as First Financial Credit Union in California does. The programs differ by location and need, but credit unions are generally committed to being a positive force in the community.\n*   **Higher rates on savings accounts.** Credit unions tend to offer higher interest rates on savings and deposit accounts than banks do. Massachusetts-based Digital Credit Union, for instance, currently offers members an impressive annual yield of 6.7%on the first $1,000 in their primary savings account. And these accounts are as secure as those provided by commercial banks, since they are also insured.\n*   **Personalized credit assistance.** If your credit rating is poor, you can turn to your credit union for help. \"We have at least one certified credit counselor who can sit down with people,\" says Lark. \"We give members a credit score for free and then walk them through the numbers. We look at their entire picture and explain how to increase their scores, get out of debt, discuss their best products and services, and cover their long-term goals and short-term issues.\"\n*   **Other education.** Part of the mission and purpose of a credit union is to educate their members about the wide span of money and credit matters. They often staff financial advisors to give advice and host free financial workshops. Some credit unions go beyond economics, such as Communication Federal Credit Union, which puts on women's defense classes. END
 TITLE: What Are the Benefits of a Credit Union? CONTENT: What to Consider Before Joining a Credit Union\n----------------------------------------------\nOf course credit unions aren't for everyone, and there are some disadvantages to be aware of before abandoning your big bank. Credit unions may have:\n*   **Limited locations.** Smaller credit unions may only have one or two brick-and-mortar branches. If you're far away and want to go in to conduct in-person business matters, you could be out of luck.\n*   **Fewer ATMs.** Credit unions may only have ATMs attached to their branches. You can use other financial institutions' ATMs to withdraw and deposit funds and the credit union will probably pick up the tab for any associated fees, but there can be exceptions to this rule.\n*   **Lackluster technology.** If you're accustomed to the ultra professional websites and online systems that commercial banks have, you could be disappointed by the difference. At best, some smaller credit unions' technology can be described as quaint; at worst, it can be frustrating.\n*   **Pared-down plastic options.** Want to have all of your accounts in one place, including credit cards? Most credit unions offer them, but there may not be a variety of credit cards from which to choose. Those with huge sign-up bonuses and other specialized rewards programs probably won't be part of the lineup.\n*   **Exclusive membership.** Credit unions often cater to a specific community or profession. For example, San Francisco Federal Credit Union is open to people who live, worship or work in the area. To become a member of State Employees' Credit Union, you'll need to be an employee of the state of North Carolina.\nStill, credit unions may be worth considering if you're unhappy with your bank or are looking for a more community-focused atmosphere. If you think a credit union might be a good option for you, but you're not sure if you're eligible for any in your community, don't give up. \"There are a lot of misconceptions about credit unions,\" Coleman says. \"People automatically think they can't join because of the name or worry that it's some sort of club. That's not true at all. You can find a credit union that's right for you. Check out what's in your area, then walk in the door and talk with someone.\" If you do, chances are a friendly representative will welcome you—and may draw you in as a new member of the family. END
 TITLE: How to Meet Your Credit Card’s Minimum Spend CONTENT: What to Know About Minimum Spends and Credit Card Bonuses\n---------------------------------------------------------\nWhile introductory bonuses can be an extremely lucrative way to earn points or cash back, there are a few things you should know before pursuing them:\n*   If you can't afford to pay off a credit card's minimum spend—in full—then it probably isn't the best fit. No bonus is worth going into debt over.\n*   The minimum spend clock starts ticking from the day you're approved, not from the day you receive the card. Mark the deadline in your calendar, and call your credit card issuer if you're not sure when it is.\n*   Only purchases count toward your minimum spend; things like annual fees, balance transfers, cash advances and money orders do not.\n*   Before applying for a card, carefully review the eligibility requirements for its sign-up bonus. With the Chase Sapphire family of cards, for instance, you're only eligible if you haven't received another Sapphire bonus in the past 48 months.\n*   If you're in a trusted relationship, consider adding your partner as an authorized user; that way, you can work toward the minimum spend together. END
 TITLE: How to Meet Your Credit Card’s Minimum Spend CONTENT: Besides using your credit card, well, everywhere—including the gas station, the coffee shop, even the farmers market—you may have to think outside the box to meet your minimum spend. Here are six ideas to get your gears turning. END
 TITLE: How to Meet Your Credit Card’s Minimum Spend CONTENT: 3 Cards With Killer Intro Bonuses\n---------------------------------\nCurious about the types of bonuses you could earn right now? Take a look at Experian CreditMatch™.\nAfter gathering some basic information, this tool completes a soft credit pull—which doesn't affect your credit scores—and presents you with personalized credit card offers.\nTo give you a taste of what you might find, here are four credit cards with great intro bonuses. END
 TITLE: How to Meet Your Credit Card’s Minimum Spend CONTENT: ### Discover it® Secured Credit Card\nDiscover it® Secured Credit Card\n--------------------------------\nApply\non Discover's website\n**Recommended FICO® Score\\***\nPoor, New to Credit, Rebuilding\nDiscover it® Secured Credit Card\n--------------------------------\nIntro APR\n10.99% on Balance Transfers for 6 months\nRewards\n2% cash back on Gas Stations & Dining\n1% cash back on All Other Purchases\n**Intro Bonus**\nDiscover will match all the cash back you’ve earned at the end of your first year.\n##### Card Details\n*   No Annual Fee, earn cash back, and build your credit with responsible use.\n*   Using your secured credit card helps build a credit history with the three major credit bureaus. Generally, prepaid and debit cards can’t do that.\n*   Establish your credit line with your tax return by providing a refundable security deposit of at least $200 after being approved. Bank information must be provided when submitting your deposit.\n*   Automatic reviews starting at 8 months to see if we can transition you to an unsecured line of credit and return your deposit.\n*   Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases – automatically.\n*   Discover is accepted nationwide by 99% of the places that take credit cards.\n*   Get 100% U.S. based customer service & get your free Credit Scorecard with your FICO® Credit Score\n*   INTRO OFFER: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.\n*   Get an alert if we find your Social Security number on any of thousands of Dark Web sites.\\* Activate for free.\n[Rates and Fees](;prodsku=109&u=https%3A%2F%2Fwww.discovercard.com%2Fapplication%2Fwebsite%2Fratesrewards%3FsrcCde%3DGEGX%268&intsrc=APIG_4272)\nDon't have the best credit, but still want to snag an introductory bonus? This could be the card for you. Whereas most secured cards don't offer rewards, this Discover card offers 2% cash back on gas stations and dining (up to the first $1,000 on combined purchases each quarter), 1% cash back on everything else—and for new cardholders, a dollar-for-dollar cash back match at the end of your first year with the card. Though that might not be an \"intro bonus\" in the traditional sense of the word, it's one of the best bonuses available to users with bad credit. END
 TITLE: How to Meet Your Credit Card’s Minimum Spend CONTENT: ### Chase Sapphire Preferred® Card\nChase Sapphire Preferred® Card\n------------------------------\nApply\non Chase's website\n**Recommended FICO® Score\\***\nGood - Exceptional\nChase Sapphire Preferred® Card\n------------------------------\nAPR\n15.99% - 22.99% Variable\nRewards\n2X points on Travel\n1X points on All Other Purchases\n**Intro Bonus**\nOur best offer ever! Earn 100,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,250 when you redeem through Chase Ultimate Rewards®.\n##### Card Details\n*   Our best offer ever! Earn 100,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,250 when you redeem through Chase Ultimate Rewards®.\n*   Enjoy new benefits such as a $50 annual Ultimate Rewards Hotel Credit, 5X points on travel purchased through Chase Ultimate Rewards®, 3X points on dining and 2X points on all other travel purchases, plus more.\n*   Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 100,000 points are worth $1,250 toward travel.\n*   With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories.\n*   Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash's subscription service. Activate by 12\/31\/21.\n*   Count on Trip Cancellation\/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.\n*   Get up to $60 back on an eligible Peloton Digital or All-Access Membership through 12\/31\/2021, and get full access to their workout library through the Peloton app, including cardio, running, strength, yoga, and more. Take classes using a phone, tablet, or TV. No fitness equipment is required.\nRather than cash back, this card's bonus comes in the form of Chase Ultimate Rewards points: 100,000 of 'em if you spend $4,000 in the first 3 months. When redeemed for travel through Chase's portal, those points are worth $1,250; when transferred to one of Chase's 13 air and hotel partners, they could potentially be worth more. This card—as well as its higher-end cousin, the Chase Sapphire Reserve®—offers a slew of unique perks for frequent travelers too. END
 TITLE: How to Meet Your Credit Card’s Minimum Spend CONTENT: The Cardinal Rule of Credit Card Bonuses\n----------------------------------------\nIntroductory bonuses are one of the best ways to earn rewards with credit cards. But before going after any sparkly bonuses, make sure you won't be going over your budget to earn them.\nIf the bonus requires you to spend $5,000 in three months—but you normally only spend $1,000 per month on your credit card—know where that extra $2,000 is coming from before you apply.\nOtherwise, you could end up spending more than you can afford, getting yourself on the hook for late fees and interest—and negating any benefits you might receive. END
 TITLE: What’s a Qualified Mortgage? CONTENT: Requirements for a Qualified Mortgage\n-------------------------------------\nAs spelled out by the CFPB, QMs must meet four requirements:\n1.  **Ability-to-repay rule.** The lender must make a good faith effort to ensure borrowers can make monthly mortgage payments by documenting income, assets, employment, credit history and monthly expenses. This rule excludes mortgages with low initial interest rates (known as teaser rates) that rise dramatically at the end of an introductory period.\n2.  **Restrictions on risky loans.** Certain other types of mortgage loans that can put borrowers at risk are also excluded from QM status, including:\n*   Loans that include reduced interest-only payments for a portion of the repayment period, during which the borrower accumulates no equity in the property.\n*   Negative-amortization loans, under which the principal owed on the loan increases over the course of the repayment term.\n*   Loans that call for a large final payment (often called a balloon payment) at the end of the repayment term.\n*   Mortgages with repayment terms longer than 30 years.\n4.  **Income-based restrictions.** Lenders issuing QMs must ascertain that monthly payments on the loan do not cause household debt-to-income (DTI) ratio to exceed 43%. DTI is calculated by dividing total monthly debt payments (including those on credit cards, auto loans, student loans and other forms of credit, as well as the mortgage loan) by the borrower's monthly pretax income. This measure aims to prevent borrowers from accepting mortgage loans that hurt their ability to cover their monthly debts.\n5.  **Limits on points and fees.** A QM for $100,000 or more cannot require points (upfront payments characterized as percentage points of the total loan amount) or other fees that exceed 3% of the loan amount. Fees can be proportionally larger on smaller loans, as specified below:\nTotal Loan Amount\nMaximum Points & Fees\n$100,000 or more\n3% of the total loan amount\n$60,000 to $99,999.99\n$3,000\n$20,000 to $59,999.99\n5% of the total loan amount\n$12,500 to $19,999.99\n$1,000\nLess than $12,500\n8% of the total loan amount\n**Source**: **Consumer Financial Protection Bureau**\nFederal Housing Administration (FHA) insurance premiums and certain other types of fees are not included in point and fee limits. END
 TITLE: What’s a Qualified Mortgage? CONTENT: Types of Qualified Mortgages\n----------------------------\nWhen the CFPB set forth the Qualified Mortgage requirements listed above, it made provisions for certain special-case exemptions. As a result, there are currently three subcategories of loans that can be considered Qualified Mortgages:\n1.  **General-definition QMs**: Mortgages that meet all four requirements listed above are known as general-definition QMs.\n2.  **GSE-eligible QMs**: Conforming loans that meet requirements for purchase by Fannie Mae and Freddie Mac, the government-sponsored enterprises (GSEs) that buy mortgages from lenders and convert them to securities traded by investors, are temporarily exempt from the QM 43% DTI requirement. This exemption will stay in place until January 10, 2021, or until the GSEs emerge from the conservatorship under the agency that regulates them, the Federal Housing Finance Administration (FHFA). After the 2008 housing crisis badly destabilized GSEs, the FHFA took control of them and is working to restore them to solid financial footing.\n    Loans that qualify for insurance by the Federal Housing Administration (FHA), Veterans Administration (VA) or U.S. Department of Agriculture (which underwrites certain farm loans) also can be considered QMs regardless of the debt-to-income ratio, until those agencies issue their own QM rules or until January 10, 2021, whichever comes first.\n3.  **Small-creditor QMs.** Mortgage lenders with less than $2 billion in assets that originate 500 or fewer private home mortgages annually—generally small banks and credit unions—can call their mortgages QMs if they keep the loans in their own portfolios (in other words, don't resell them to GSEs or other secondary buyers) and consider and verify each borrower's DTI as part of their lending decisions (though no specific DTI limit applies). END
 TITLE: What’s a Qualified Mortgage? CONTENT: What Are the Benefits and Drawbacks of Qualified Mortgages?\n-----------------------------------------------------------\nThe main reason the CFPB developed the Qualified Mortgage standard was to restore investor confidence in the U.S. mortgage market and in securities based on mortgage loans, after reckless and abusive lending practices helped spark the 2008 housing crisis. While they are designed to protect lenders (and their shareholders) from the kinds of mass defaults seen a decade ago, QMs also offer some assurances for consumers: The ability-to-pay and DTI requirements for QMs can help prevent borrowers from getting in over their heads with mortgage payments they can't afford.\nOn the downside, meeting the strict requirements of a Qualified Mortgage makes the mortgage approval process a little more labor-intensive for applicants, and the QM process may raise the bar a bit too high for some would-be homeowners. In the past, some of the riskier mortgage types barred under QM standards let marginal borrowers enter the housing market, with the goal of transitioning to a more traditional mortgage within a few years. END
 TITLE: What’s a Qualified Mortgage? CONTENT: When to Consider a Non-Qualified Mortgage\n-----------------------------------------\nMortgages that don't meet QM standards are less common than QM loans, but many lenders still offer them. Note, however, that a lender's willingness to accept a DTI ratio greater than 43%, or to relax some other ability-to-pay requirements, doesn't mean they'll take any borrower with a pulse. In fact, they may look even harder at applicants' other resources than lenders offering QM loans.\nSo who are good candidates for non-QM mortgages? Wealthy borrowers with sizable real assets but relatively little income are one class of candidate. These borrowers might not meet the DTI ratio required for a Qualified Mortgage, but could easily prove the ability to liquidate investments as needed to make mortgage payments.\nFirst-time homebuyers with moderate or low income who cannot meet Qualified Mortgage ability-to-pay requirements might also qualify for some non-QM mortgages, but they should be prepared to pay high interest rates and fees. END
 TITLE: What’s a Qualified Mortgage? CONTENT: Do Credit Scores Affect Qualified Mortgages?\n--------------------------------------------\nA major mortgage feature that isn't addressed by Qualified Mortgage requirements is the loan's interest rate. Just as they were in the days before QM rules, mortgage interest rates are set by lenders, based on your creditworthiness, as reflected in your credit history and measured by your credit score. A history of good debt management, including timely payments and moderate usage of your available credit limits, will tend to raise your credit score and help you qualify for a mortgage with the lowest interest rates, whether the loan is a Qualified Mortgage or not.\nTo know where you stand before you apply for a mortgage, it's a good idea to check your credit scores and review your credit reports from all three national credit bureaus (Experian, Equifax and TransUnion), which you can do through Experian or for free once a year at AnnualCreditReport.com. If your score isn't as strong you might hope, consider taking some steps to spruce up your credit before you apply for your mortgage.\nQualified Mortgage standards are helping shore up mortgage lenders and the government-sponsored companies that package them for Wall Street investors, and they're also making mortgages a little less risky for consumers. They make applying for and gaining approval on mortgages a bit more challenging, but they also make the mortgage market more stable and secure. Whether you end up seeking a QM or non-QM loan, establishing and maintaining a good credit history can help you get the best mortgage deal you can get. END
 TITLE: How the CARES Act Stimulus Affects Your Student Loans CONTENT: What the CARES Act Means for Student Loans\n------------------------------------------\nThe stimulus package includes provisions to help most student loan borrowers weather the economic storm caused by the COVID-19 pandemic. Here are some of the benefits provided:\n*   All involuntary collections of student loan debt are suspended, including wage garnishments, Social Security garnishments and tax refund offsets.\n*   The U.S. Department of Education will automatically suspend payments on direct loans and FFELs (Federal Family Education Loans) held by the federal government through September 30, 2021.\n*   No interest will accrue during the suspension period, and suspended payments will count toward requirements for the Public Service Loan Forgiveness program and income-driven repayment plans.\n*   The Department of Education will report suspended payments to the national credit bureaus as though they were on-time payments.\n*   Through the end of 2020, employers can provide up to $5,250 toward an employee's student loan debt, and this would not be considered a taxable benefit to the employee.\nIf you qualify for assistance, the suspension of payments is automatic, so you don't have to worry about contacting your student loan servicer. But while you don't need to make payments until at least the end of September, the federal government isn't making those payments for you. As a result, your repayment term will be extended by the duration of the suspension period.\nFor employers, the $5,250 amount is currently what they can provide to employees annually for tuition assistance on a tax-free basis; but it will be the combined limit for tax-free tuition and student loan repayment assistance in 2020. END
 TITLE: How the CARES Act Stimulus Affects Your Student Loans CONTENT: Who Is Eligible for Student Loan Benefits?\n------------------------------------------\nThe CARES Act only offers suspended payments for student loan borrowers who have direct loans or FFEL loans that are held by the federal government. This means that if you have FFEL loans held by a commercial lender or federal Perkins loans, you're not eligible for the benefit.\nAccording to the Institute for College Access & Success, nearly 12% of federal loans don't qualify under the terms of the CARES Act. Additionally, private student loans, which often carry higher interest rates than federal loans, aren't included in the stimulus package.\nIf you do qualify, though, remember that you don't need to submit a request for help or even contact your loan servicer. The Department of Education will start the suspension period automatically.\nAs for the employer benefit, you may qualify if your employer decides to offer student loan repayment assistance as a benefit. According to the Society for Human Resource Management, 8% of organizations in the U.S. already offer this perk for employees. END
 TITLE: How the CARES Act Stimulus Affects Your Student Loans CONTENT: What to Do if You're Not Eligible for Relief Under the CARES Act\n----------------------------------------------------------------\nIf you have student loans that aren't eligible for suspended payments, you'll still be on the hook for monthly payments for the foreseeable future. If you're struggling to keep up with your payments, contact your lender to ask about forbearance and other options.\nWhile forbearance won't stop interest from accruing—and you'll have to make up those payments in the future—it can give you a reprieve from loan payments for at least a few months.\nHere are just a few examples that were available at the time of publication. Be sure to check for any policy updates from these and other lenders:\n*   **Citizens Bank**: Borrowers can get up to 12 months of forbearance.\n*   **Commonbond**: The lender offers forbearance for up to 24 months.\n*   **College Ave**: Currently offers a disaster forbearance program, which can pause your payments for three months.\n*   **Discover**: Can temporarily reduce your interest rate for six months or grant forbearance for up to 12 months in small increments.\n*   **Earnest**: Qualified borrowers can get disaster forbearance, which postpones payments for up to three months.\n*   **Sallie Mae**: Student loan borrowers can get up to 12 months of forbearance in three-month increments.\nKeep in mind that you may need to meet certain requirements to qualify for forbearance with your private lender. Call your lender to find out what your options are and whether you qualify.\nIf your employer doesn't plan on providing loan repayment assistance, consider speaking with your human resources department to see if it may be an option, if only temporarily, during a challenging economic situation. END
 TITLE: How the CARES Act Stimulus Affects Your Student Loans CONTENT: Consider Requesting Forbearance Even if You Don't Need It\n---------------------------------------------------------\nIf you have eligible federal loans, you don't have to do anything to take advantage of the benefits provided by the CARES Act. But if your loans don't qualify, it may be worth requesting forbearance even if you don't think you need it right now.\nHealth experts aren't exactly sure when the COVID-19 pandemic will ease up and make it possible for life to go back to normal. Even if your job and income are secure right now, that can change in the coming months, and having a little extra cash can make it easier to get through anything that comes your way.\nOf course, some private lenders may not deem you eligible for forbearance, but it may still be worth trying to put a little less pressure on your budget. END
 TITLE: How the CARES Act Stimulus Affects Your Student Loans CONTENT: How Does Student Loan Forbearance Affect Your Credit?\n-----------------------------------------------------\nFor student loan borrowers who are eligible to take advantage of the CARES Act's assistance, the good news is your student loans will stay on your credit report, but will remain in positive standing (as long as you were current on your loans when you sought assistance). END
 TITLE: How to Save Money for College CONTENT: How Much Should I Save for College?\n-----------------------------------\nThe average cost for in-state college tuition in the United States is $10,230 at public four-year schools for the 2018-19 academic year, according to the College Board. Out-of-state public school tuition is even higher, coming in at $26,290 on average. And that doesn't include room and board. Multiply tuition plus living expenses by four years, and you may want to give up before you begin. Don't. While college costs can be staggering, your goal is to set aside as much as is financially feasible for your situation, knowing that you may have to supplement whatever you do save with student loans down the road.\nHow much you pay for your child's college will depend to some extent on where your child goes to school. For example, out-of-state public school tuition in South Dakota costs less than in-state public school tuition in New Hampshire or Vermont. Private schools tend to charge high tuition, but some offer large discounts for lower-income families, highly accomplished students or stellar athletes. Various factors, including scholarships, legacy considerations and where your child lives, all contribute to the total cost of college.\nBecause it's impossible to know when your child is a toddler—or even a sophomore in high school—where exactly they will attend college, it's best to consider other factors when trying to determine how much to save for your child's college education, such as:\n*   Whether you're on track with retirement savings\n*   How much discretionary income you can afford to set aside\n*   What you expect your child to contribute\n*   Whether your child lives at home during part or all of college\nProbably the most important factor when considering how much to save for your child's future education is whether you're putting away enough money for your own retirement. Experts note that while you can borrow money to pay for your child's education if you have to, you can't borrow for retirement. So if you haven't begun planning for retirement yet, start there.\nAlso make sure your credit card debt is low (or ideally paid off every month) and you've set aside at least a small amount of money for an emergency fund. Once these considerations are in place, it's time to figure out what amount you can put into savings each month-—without putting your retirement or other major financial goals at risk. END
 TITLE: How to Save Money for College CONTENT: When Should I Start Saving for College?\n---------------------------------------\nEven if you can't put a lot each month toward saving for your child's education, the earlier you start, the better off you'll be. That's partly because your money will have more time to benefit from the power of compounding returns. If you invest to save for your child's college, your money will work on your behalf.\nStart with whatever you can afford after you've arranged for retirement contributions and other important financial goals, and figured out your monthly budget for necessities such as rent or mortgage, groceries, gas and the like. Then, as your financial situation improves, you can increase your college saving contributions.\nThe easiest way to make sure you save every month is to have funds automatically deposited into whatever savings vehicle you choose (more on that below). Virtually all types of college investment accounts will allow you to set up automatic payments, pulling money from your checking account each month to fund the account. Automating payments makes it much more likely you'll stay on track with college savings—and lets you set it and forget it (until you're in a position to boost those savings). END
 TITLE: How to Save Money for College CONTENT: Types of College Savings Plans\n------------------------------\nThere are several options when saving for your child's college. The best way to save for their education depends on your situation and what works best for you. Some options give you the chance to claim a state tax deduction, while others offer different types of favorable tax treatment. Still others give you the option to name a different beneficiary if your child decides not to go the college route.\nHere are five options to consider as you save for your child's college costs.\n### 1\\. 529 Plan\nOne of the best ways to save for your child is to use a 529 plan. With a 529, you contribute money to an investment account and the money grows tax-free, as long as you withdraw it for qualified education expenses.\nThe pluses of 529 accounts are plenty. You won't pay taxes on earnings while the fund grows or when you take out money to pay for college. And, depending on your state, you might receive a state income tax deduction for your contributions (there's no federal tax deduction).\nWith 529 plans, you are in control of the fund, unlike some custodial accounts that turn over accumulated funds to the student once they reach legal age. And there's some flexibility with a 529. If your child decides not to go to college, you can change the beneficiary of the account so that someone else can benefit.\nThe downside to 529 plans is that like with any investment account, you can lose money. Additionally, if you withdraw money for non-qualified costs, you will pay a penalty. But the positives outweigh the negatives for most people considering 529 plans.\n### 2\\. Coverdell Education Savings Account (ESA)\nAnother option is to use the Coverdell ESA. Like with the 529 plan, you make contributions with after-tax money, but it grows tax-free, and earnings aren't taxed when they're distributed for qualified expenses. You do have to be careful, though. The funds in a Coverdell ESA must be used—or rolled over to another beneficiary—by age 30.\nWith Coverdell ESAs, you're limited to contributions of $2,000 per year, and there are income limits as well. Even though you can't contribute as much to a Coverdell account as to a 529, there's a little more flexibility in what educational expenses qualify.\n### 3\\. Roth IRA\nBelieve it or not, you can use savings in a Roth IRA to pay for your child's college. As long as you meet the income requirements and you don't contribute more the allowed amount, this can be a good way to save for your child's college education.\nYou can withdraw money, up to the amount you contributed originally, to pay for qualified education expenses without penalty—as long as the account has been in existence for at least five years. So, if you've contributed $20,000 to a Roth IRA and it's grown to $35,000, you can withdraw up to $20,000 without penalty to pay for school for your child.\nOne of the advantages to using a Roth IRA is that it's your money, so if your child decides not to attend school, you can just let it grow and use it for retirement down the road.\nA downside to using Roth money, though, is that it will count as income on your taxes the year after you use it for college expenses, potentially reducing your child's financial aid that year. As a result, some families use other funds first and withdraw from the Roth IRA for the final year of schooling.\n#### What About a Traditional IRA?\nIt's also possible to withdraw money from a traditional IRA to pay for your child's college expenses. However, while you may avoid the 10% early withdrawal penalty, you'll still have to pay taxes on the amount you take out—and you no longer have that amount to grow and earn interest toward your retirement. Experts recommend exhausting all other options before taking money out of your primary retirement accounts.\n### 4\\. Traditional Savings Account\nYou could also use a traditional savings account to save for college. When you go this route, you can use the money for anything. So if your child decides not to attend college, you're not stuck trying to find another qualified beneficiary.\nThe main downside to using a traditional savings account to save for your child's college education is that the returns are generally very low. You won't see the account growth that typically comes with an investment account, like a 529 plan. Additionally, you'll be taxed on the interest you earn.\nAnother savings vehicle to be careful of is using a UGMA\/UTMA account. When you open one of these accounts and save on behalf of your child, those funds are counted as student assets for the purpose of financial aid. Student assets have a bigger impact on reducing the amount of aid received than parental assets, so it's important to think this through before moving forward.\n### 5\\. Taxable Investment Account\nAs with an IRA or a 529 plan, a taxable investment account allows you to take advantage of faster growth and higher returns than you'd see with a Coverdell ESA or a traditional savings account.\nThe money in investment accounts is, of course, completely flexible. You can use it for whatever you want, without worrying about restrictions. However, there are some downsides that might not make this the best way to save for your child. Some things to keep in mind include:\n*   You'll pay capital gains tax when you withdraw the money.\n*   The money in your account will affect how much your child qualifies for in student aid.\n*   There are no state tax breaks for contributions.\nBefore you decide on the best way to save for your child's college education, consider your options and your financial situation.\nSaving for your child's college can feel overwhelming, but once you get started, you may find it's easier than you thought it would be. It's important to remember that you have several options—in fact, you can use a combination of strategies to create a college savings plan that works for your family. END
 TITLE: How to Get a Car Loan CONTENT: Determine How Much Car You Can Afford\n-------------------------------------\nMost people don't have the cash required to buy a vehicle without financing, which is why when considering the cost of a car, the total monthly expense may be as important as the total price tag.\nTo determine how much car you can afford, consider the total monthly costs, including car loan payments, insurance, gas and maintenance. You also need to look at other monthly debt obligations you may have, such as credit cards, student loans and a mortgage.\nThe total amount of debt you have, compared with your income, is called your debt-to-income ratio, and it can be a factor in whether lenders agree to give you additional credit. Generally, a ratio below 40% is considered good. So if your monthly gross income is $4,000, for example, then your monthly debt expenses should be less than $1,600. END
 TITLE: How to Get a Car Loan CONTENT: Check Your Credit Scores First\n------------------------------\nBefore making a major purchase, it's a good idea to check your credit reports and scores at least three to six months prior to your planned purchase.\nThe credit score needed to qualify for a loan will vary depending on the lender, since they will each have different criteria to grant you a loan and may use different credit scoring models, such as the FICO® Auto Score 8, which has a score range between 250 and 900.\nSome lenders specialize in approving loans for those with lower credit scores. These can come with higher interest rates and less favorable terms. For example, if you wanted to purchase a car for $30,000 with an interest rate of 11% on a five-year loan, you'd pay $9,140 in total interest. With the same loan amount and term length, but with an interest rate of 4%, the total amount of interest you'd pay would be $3,150—just over a third of what you would pay at the higher rate. END
 TITLE: How to Get a Car Loan CONTENT: Shopping for Auto Loans\n-----------------------\nJust as you comparison shop for the best price on the vehicle you want to buy, it's important to shop around for the best car loan deal because that can help you secure the best interest rates.\nWhen shopping for a car, it is also common for auto dealers to submit applications to multiple lenders to help you find the lowest interest rate and favorable terms. You can also shop around for an auto loan on your own. Keeping those applications within a short period of time will minimize the number of hard inquiries. Every time you apply for credit, a hard inquiry appears on your credit report, and too many hard inquiries can negatively affect credit scores. Credit scoring models like FICO usually group similar hard inquiries that occur in a short time frame, treating them as a single inquiry, which reduces their impact on credit scores.\nMultiple sources can provide you with an auto loan, including:\n*   **Banks and credit unions**: Getting a loan from a financial institution means you can secure your financing before you go car shopping, so you'll know exactly how much the loan—and the vehicle—will cost you. Once you've found the car you want, you can use the loan to purchase the car from the dealer.\n*   **Car dealers**: You can also apply for and secure financing through the dealership where you buy the car. The dealer may hold on to the loan or sell it to a bank, finance company or credit union. Financing through a dealer can be convenient, may provide you with access to special deals and incentives, and may be easier to qualify for than a loan from your bank.\n*   **Online lenders**: A number of online lenders provide auto loans. These loans work similarly to direct lending from a bank or credit union. Some consolidating websites allow you to get quotes from multiple lenders by completing a single online form. END
 TITLE: How to Get a Car Loan CONTENT: Getting Preapproved for a Car Loan\n----------------------------------\nIf you decide to get a loan from a bank or credit union, you can get preapproved. Getting preapproval for a car loan involves completing a preliminary application with a lender who will review your credit and other financial information. They'll let you know the size of the loan they'll finance and the interest rate they're likely to offer.\nPreapproval can help you find the best interest rate, make it easier to know how much you can spend, and give you bargaining power with a dealership. It doesn't, however, obligate you or the lender to actually enter into a loan agreement.\nRemember to complete your preapproval and actual loan application within a short time period to minimize the possible impact of hard inquiries on your credit score. END
 TITLE: How to Get a Car Loan CONTENT: Applying for the Car Loan\n-------------------------\nWhen you secure a car loan, the lender agrees to lend you the purchase price of the vehicle, and you agree to repay that principal with interest over a set period of months. It's important to understand that the finance company technically owns the car until you pay off the loan.\nAs you're applying for a car loan, you'll encounter some important financial terms, including:\n*   **Down payment**: This is the amount of cash you put toward the purchase price of the vehicle. The down payment lowers the amount you need to borrow, which in turn lowers the total amount of interest you'll pay over the life of the loan.\n*   **APR (annual percentage rate)**: Most types of loans come with interest, which is what the lender charges for allowing you to use their money to make a purchase. Your car loan interest rate and any fees your lender charges make up the APR. When you're comparison shopping for a car loan, comparing APRs can be a good way to assess the affordability of different loans.\n*   **Taxes and fees**: Every state charges sales tax on vehicles, plus you'll pay fees to register the vehicle. Typically, dealerships will charge a documentation fee to take care of registering the car and securing tags for you. Dealerships may also charge a destination fee from the manufacturer, which is the cost of transporting the car from the factory to the dealership.\n*   **Term**: The term is the number of months you have to pay back the loan. Common loan terms are 36 months or 72 months, with some loans exceeding 72 months. The longer the term of the loan, the more you will pay in total interest for the car. Some lenders will also offer better interest rates for shorter term lengths, such as 36 months, and provide higher rates with longer terms, up to and even beyond 72 months. For example, the interest rate for an auto loan with a term of 36 months might be 4%, whereas the same loan might be 6% for 72 months.\n*   **Monthly payment**: This is the amount you must pay every month to the lender, by an agreed-upon date, to repay the loan. It includes both principal and interest. At the beginning of the loan, your loan agreement will specify your monthly payment and how many payments you must make to fully repay the loan. One reason people take a longer loan term is to secure a lower monthly payment. Because the lender technically owns your car until you fully repay the loan, they can repossess the vehicle if you miss loan payments. END
 TITLE: How to Get a Car Loan CONTENT: How to Get a Car Loan With Bad Credit\n-------------------------------------\nIf your credit report contains some negative information, or your credit score is not as high as you would like, consider taking steps to improve your credit before applying for an auto loan. Improving your credit can boost your chances of qualifying for an auto loan at a good rate and terms. Steps you can take to improve your credit include:\n*   Bringing any late payments or collection accounts current.\n*   Paying all your bills on time every month.\n*   Paying down existing debt to improve your credit utilization ratio, which compares the total amount of credit you have available with how much of it you're actually using.\nIf your credit reports and scores are poor, and you can't afford to wait to get a car, it may still be possible to get a car loan. However, be aware your loan will likely have a higher interest rate than what's offered to people with good credit scores.\nYou can offset the impact of poor credit by saving up for a bigger down payment. The down payment will reduce the amount you have to borrow—and the amount of interest you'll pay over the life of the loan. Plus, lenders may view your down payment as evidence you know how to manage money and will likely repay their loan.\nYou can also ask someone with good credit to cosign for a car loan. When you have a cosigner, that person's good credit will influence the interest rate and terms the lender offers. However, your cosigner will share responsibility for repaying the loan, so it's important to ensure you make all payments in a timely manner. END
 TITLE: How to Get a Car Loan CONTENT: Make Loan Payments on Time\n--------------------------\nCredit scoring models take into account how reliably you pay all your bills, including auto loans. In fact, payment history is the most important factor in determining credit scores. By paying your car loan on time every month, you can help build positive credit history.\nWhat's more, when you finish repaying the loan, the lender will report the account as closed and paid in full to credit bureaus, and that will remain on your credit report and benefit your credit for 10 years from the closed date. That paid-up loan tells future lenders you know how to manage credit and repay your debts.\nHowever, paying late or missing payments altogether can hurt your credit scores and make it harder to get credit in the future. Late or missed payments appear as negative information on credit reports, and remain for seven years. On the positive side, as the late payment ages over time, the less impact it will have on your credit score.\nMissing too many payments may cause the lender to turn your debt over to collections or even repossess your vehicle. Both collections and repossessions remain on credit reports for seven years from the initial date of delinquency, and can negatively affect credit scores throughout that time. END
 TITLE: How to Get a Car Loan CONTENT: Making Informed Decisions\n-------------------------\nA car loan can be a great way to purchase a vehicle while building your credit at the same time. Be sure to comparison shop for the best loan deal, understand all the terms and conditions before you sign for a loan, and repay the loan on time every month.\nBefore applying for a car loan, take control of your credit by reviewing your free credit report and taking steps to make improvements. Once you know your credit standing and what you need to do to improve it, you'll become better informed about what your options and next steps are. END
 TITLE: 7 Reasons to Get a New Credit Card This New Year CONTENT: 1\\. Take a Vacation at a Discount\n---------------------------------\nWith good or excellent credit, you may qualify for a travel rewards credit card and earn points or miles, which you can use to cover some or even all of certain travel expenses.\nFor example, the Capital One Venture Rewards Credit Card offers 2 miles per dollar spent on purchases, plus an impressive one-time bonus when you first get the card and meet a spending requirement. You'll get 60,000 bonus miles when you spend $3,000 within 3 months of account opening.\nOnce you've earned enough rewards, you can redeem them for travel through Capital One's travel portal or book travel wherever you want and request a statement credit.\nIf you have some big purchases on the horizon, like furniture for a new apartment or a wedding, now may be a good time to get a travel credit card and earn a sign-up bonus you can use to help book your first post-pandemic trip. END
 TITLE: 7 Reasons to Get a New Credit Card This New Year CONTENT: For example, the Capital One Venture Rewards Credit Card offers 2 miles per dollar spent on purchases, plus an impressive one-time bonus when you first get the card and meet a spending requirement. You'll get 60,000 bonus miles when you spend $3,000 within 3 months of account opening. END
 TITLE: 7 Reasons to Get a New Credit Card This New Year CONTENT: 2\\. Take Advantage of Pandemic-Focused Rewards\n----------------------------------------------\nU.S. consumers have made changes to their spending habits during the coronavirus pandemic, and many credit card companies have responded by upgrading their cards, even if only temporarily, to provide more value to cardholders.\nFor example, as more people are cooking at home instead of dining out, the Chase Sapphire Reserve® premium travel credit card allows cardholders with excellent credit to earn 3 points per dollar on up to $1,000 each month in grocery store purchases through April 2021. And through June 2021, the card's $300 annual travel credit will be used to reimburse you for gas station and grocery store purchases up to that limit.\nFor long-term value, the card also offers a suite of luxury travel perks and an incredibly valuable rewards program. That said, it also has a $550 annual fee, which may be too much for many people right now.  \nIf you want a cheaper option, the Chase Freedom Flex℠ is giving new cardholders a $200 bonus after you spend $500 in the first 3 months. END
 TITLE: 7 Reasons to Get a New Credit Card This New Year CONTENT: For example, as more people are cooking at home instead of dining out, the Chase Sapphire Reserve® premium travel credit card allows cardholders with excellent credit to earn 3 points per dollar on up to $1,000 each month in grocery store purchases through April 2021. And through June 2021, the card's $300 annual travel credit will be used to reimburse you for gas station and grocery store purchases up to that limit.\nFor long-term value, the card also offers a suite of luxury travel perks and an incredibly valuable rewards program. That said, it also has a $550 annual fee, which may be too much for many people right now. END
 TITLE: 7 Reasons to Get a New Credit Card This New Year CONTENT: 3\\. Step Up Your Cash Back Game\n-------------------------------\nTravel rewards credit cards offer a lot of value, but cash can be a lot more appealing for some during an economic downturn. Thankfully, there are plenty of excellent cash back credit cards on the market.\nThe Chase Freedom Unlimited® will give you 5% cash back on travel booked through Chase, 3% back on dining at restaurants and at drugstores and 1.5% back on everything else. On top of that, you'll get $200 when you spend $500 in the first 3 months.\nAs you consider which card to choose, think about your immediate cash needs, as well as your long-term priorities. If your budget is tight right now, it may make more sense to pick a card with a decent intro offer. But if you don't need a bunch of cash upfront, consider which card will give you the most value in the long run. END
 TITLE: 7 Reasons to Get a New Credit Card This New Year CONTENT: 4\\. Supplement Your Current Rewards Strategy\n--------------------------------------------\nUsing just one credit card for all of your purchases keeps things simple, and there's nothing wrong with prioritizing simplicity. But if you're looking for opportunities to maximize your rewards, applying for a second card to use alongside your primary card may be the way to do it.\nTo give you an idea of the potential, let's say you have the Chase Freedom Flex℠, which offers 5% cash back on up to $1,500 spent in quarterly rotating categories (when you activate), 5% cash back on travel booked through Chase, 3% back on drugstores and dining at restaurants and 1% back on everything else.\nThe card offers some impressive rates on everyday spending categories. But it's still likely that most of your spending will net you just 1% back, which isn't spectacular.\nSet up automatic monthly payments to avoid missing a payment, and consider using budgeting software such as Mint or You Need a Budget to keep up with your transactions on your card. END
 TITLE: 7 Reasons to Get a New Credit Card This New Year CONTENT: 5\\. Pay Down Debt Interest-Free\n-------------------------------\nBalance transfer credit cards are a powerful debt-reduction tool. They can provide interest-free introductory periods of 12 months or more, which let you pay off debt without accruing extra charges.\nYou'll likely pay a balance transfer fee, which is typically 3% or 5% of the transferred balance, and you generally must move balances to a new credit card issuer. You can't, for instance, get a balance transfer card from American Express to pay off another Amex credit card.\nIf you qualify and you commit to paying off your debt by the time the introductory period ends, you could make use of a valuable financial strategy.\nAs an example, let's say you have $6,000 on a card with a 20% annual percentage rate (APR). If you were to make a plan to pay off that balance in 18 months, your monthly payment would be roughly $389, and you'd pay about $994 in interest.\nIn some cases, you could get a balance transfer card that also offers rewards on ongoing purchases so that when your debt is paid off, you can continue to take advantage of the card.\nOnce you've paid off your balance, keep debt in check by paying your bill on time and in full every month going forward. END
 TITLE: 7 Reasons to Get a New Credit Card This New Year CONTENT: 6\\. Cover Necessary Expenses and Take Your Time to Pay\n------------------------------------------------------\nBalance transfer cards can be excellent if you already have a balance. But if you have a major expense coming up or you're struggling to just get by right now, a 0% APR credit card could give you some breathing room.\nWith the Capital One Quicksilver Cash Rewards Credit Card, for instance, you'll get an intro 0% APR on purchases for 15 months, after which the variable APR is 15.49% to 25.49%. This means you can use the card for necessary purchases, and you'll get more than a year to pay off the balance with no interest charges—just be sure to pay at least the minimum every month to avoid losing the promotion. The card also offers ongoing rewards and a one-time bonus for new cardholders.\nIf you're considering a 0% APR credit card, just be sure to avoid using it for unnecessary expenses, especially if your budget is tight. The appeal of paying no interest could tempt you to overspend, and once the promotional period is over, the remaining balance will be subject to the card's regular APR, which can get expensive. END
 TITLE: 7 Reasons to Get a New Credit Card This New Year CONTENT: 7\\. Take Your Credit to the Next Level\n--------------------------------------\nIf your credit isn't yet in good enough shape to qualify for the travel or cash back credit card of your choice, set your sights on a credit card that can get you there. Look into secured credit cards, which require a cash deposit that typically becomes your credit line. Since secured cards are typically for those new to credit or rebuilding from previous setbacks, the deposit protects the lender from the risk that you'll make purchases you can't pay back.\nBeyond the deposit requirement, a secured card works like any other credit card. But use it sparingly: Building credit is the goal of the product, and keeping your balance as low as possible will keep your credit score strong.\nOver time, your positive payment history and low credit utilization rate—the percentage of your credit limit you use—can help you build your credit and make it easier to get the card you want in the future. END
 TITLE: 7 Reasons to Get a New Credit Card This New Year CONTENT: Finding the Right Card for You\n------------------------------\nThere's no single credit card that's best for everyone, so it's important to consider a few different factors before you pick one for you. For starters, it's important to apply for a credit card that you have a good chance of getting.\nEach card has a target audience based on their credit score range. Check your credit score to see where you stand, and consider using Experian CreditMatch™, which can provide you with personalized credit card offers based on your credit profile.\nNext, if you're getting a rewards credit card, think about your spending habits. If you spend a lot on groceries, for instance, focus on cards that offer higher rates on those purchases. The same goes for dining, gas, travel and any other major spending category.\nFinally, consider other preferences and goals. If you want to pay off an existing balance, for example, your best bet is a balance transfer card. If you have a big purchase coming up and you want to finance it over time, a 0% APR card is a better choice. As you shop around and compare credit cards, think about what you want to get out of the card and consider all the features to find the one that's best suited for you. END
 TITLE: What Credit Score Do I Need to Get an American Express Card? CONTENT: Is There a Minimum Score Needed for an American Express Card?\n-------------------------------------------------------------\nCredit score requirements can vary depending on the credit card and its issuer. In addition to being a card issuer, American Express is a credit card payment network (like Visa, Mastercard and Discover), which means other companies are able to issue Amex cards as well. As a result, it might be possible to qualify for American Express credit cards whether your credit is stellar or less so.\nWhile each card issuer has its own way of categorizing credit scores, here are the general ranges, according to FICO:\n*   **Exceptional**: 800 to 850\n*   **Very good**: 740 to 799\n*   **Good**: 670 to 739\n*   **Fair**: 580 to 669\n*   **Very poor**: 300 to 579\nIf you're getting a credit card directly from American Express, you'll generally need good credit to qualify. If you have fair credit, though, you may be able to get an Amex card from a different credit card issuer, such as the Credit One Bank American Express® Credit Card. END
 TITLE: What Credit Score Do I Need to Get an American Express Card? CONTENT: American Express Prequalification and Preapproval\n-------------------------------------------------\nIf you're not sure your credit is good enough to qualify for a credit card with American Express, you can submit a request for prequalification through the card issuer's website.\nPrequalification starts when you seek out a credit card issuer and provide some information to see whether you might qualify for a particular offer. With credit cards, prequalification might be used interchangeably with preapproval, but they are different processes. Preapproval involves a credit card issuer asking a credit bureau for a list of those who meet the specific factors they have in mind. Preapproved consumers are then typically contacted by the card issuer and invited to apply.\nIn either case, the card issuer will run a soft credit check, which doesn't impact your credit score. That check will allow the issuer to see which credit cards you have a good chance of getting approved for if you were to apply.\nOf course, prequalification doesn't mean you're guaranteed to get approved for an American Express credit card. If you decide to submit a formal application, the card issuer will perform a hard credit inquiry, and may or may not approve you based on what it sees. END
 TITLE: What Credit Score Do I Need to Get an American Express Card? CONTENT: Things to Keep in Mind When Applying for an American Express Card\n-----------------------------------------------------------------\nIf you're thinking about applying for an American Express credit card, there are some things to understand before you start the process. END
 TITLE: What Credit Score Do I Need to Get an American Express Card? CONTENT: How to Improve Your Credit Score Before Applying\n------------------------------------------------\nEven if you meet the minimum requirements to get an American Express credit card—or any other card for that matter—it's still usually a good idea to work on your credit score for a better chance of approval, or better terms such as a lower interest rate.\nHere are some things you can do to improve your credit:\n*   Pay your bills on time every month.\n*   Get caught up on past-due payments and accounts in collections.\n*   Get added as an authorized user on a family member's credit card account with a positive history.\n*   Use Experian Boost™† to get credit for on-time utility, cellphone and streaming payments.\n*   Pay down credit card balances and keep them low.\n*   Avoid closing unused credit card accounts.\n*   Take on new credit only when necessary.\n*   Dispute inaccurate information on your credit reports.\nBuilding credit can take some time, but as you start making positive changes, you may start seeing results as quickly as a few months. Experian Boost can help you improve your scores instantly. END
 TITLE: What Credit Score Do I Need to Get an American Express Card? CONTENT: Continue to Monitor Your Credit After Approval\n----------------------------------------------\nAfter you've gotten approved for a new credit card, avoid the urge to ignore your credit until the next time you want to apply for a credit card or loan. You can get a free credit report annually from all three credit bureaus through AnnualCreditReport.com. Though April 2021, reports are available once weekly, which can help you keep a close eye on any changes.\nAdditionally, you can use Experian's credit monitoring tool to stay on top of your credit. Experian provides free access to your FICO® Score☉ powered by Experian data and access to your Experian credit report. You'll also get real-time alerts when new information is added to your report, including inquiries, accounts, personal information and suspicious activity.\nFinally, if you notice something is amiss on your Experian credit report, you can file and track disputes directly through the Experian platform.\nFortunately, monitoring your credit doesn't take as much work as actively working to improve your credit score, so it's a good idea to keep an eye on where you stand, so you can address potential problems as they arise and help ensure you're credit-ready the next time you want to apply. END
 TITLE: How Does Credit Card Purchase Protection Work? CONTENT: What Is Purchase Protection?\n----------------------------\nPurchase protection will reimburse you to replace an eligible item you've purchased if it's lost, stolen or damaged accidentally within a predetermined period—typically 60 to 120 days.\nDepending on the card and its issuer, the terms and limits can vary. For example, you may get up to $500 per claim, with a yearly or lifetime limit of $50,000.\nThe amount you're eligible to receive can also vary. With American Express, for instance, you'll receive the lesser of the cost to repair the item, the cost to replace it or a complete reimbursement.\nPurchase protection programs also have some limitations on the types of purchases that are covered. A few examples of purchases that aren't typically protected include:\n*   Perishable items\n*   One-of-a-kind, antique or previously owned items\n*   Motorized vehicles\n*   Traveler's checks, tickets, rare stamps or coins\nThere are also some exclusions for what caused you to lose the item or its damage or theft, which can include:\n*   Acts of war\n*   Fraud, abuse or illegal activity by the cardholder\n*   Carelessness in safeguarding the item\n*   Theft from baggage not carried by hand\nMake sure to read your card's benefits guide to get the full scoop on what is and isn't covered. Purchase protection is typically offered as secondary coverage, meaning it kicks in after other eligible insurance (such as renters or homeowners insurance) or manufacturer or vendor guarantees are used.\nFinally, it's important to note that purchase protection is different from price protection, another form of credit card insurance. If you buy an eligible item and the price drops within a set period, price protection can make it possible to get reimbursed for the difference. END
 TITLE: How Does Credit Card Purchase Protection Work? CONTENT: If you believe you qualify for your credit card's purchase protection benefit, it's important to know the details of how approval works and the steps to complete the process. Again, terms can vary depending on your card and the card's issuer.\nIn general, though, you'll need to file a claim within a set period after the date of the loss—say, 90 days or as soon as reasonably possible. You'll also need to provide proof of the loss, which can include:\n*   The original itemized receipt\n*   The billing statement that includes the purchase on your card\n*   Insurance declaration forms from other insurance policies that may cover the loss\n*   A photograph or a repair estimate by an authorized repair facility\n*   A police report, if the item was stolen or vandalized\nYou may also be required to send the damaged item itself. Once you've completed all of the steps and you're eligible to file a claim, the benefits administrator will provide payment based on the terms of the agreement. END
 TITLE: How Does Credit Card Purchase Protection Work? CONTENT: Which Issuers Offer Purchase Protection?\n----------------------------------------\nFewer major credit card issuers are now offering purchase protection as a credit card perk. Also, while some card issuers may offer it on some of their credit cards, it may not be a universal benefit across all of their card options.\nThat said, here are some credit card issuers that provide purchase protection on one or more of their credit cards, usually through the issuer network that they are a part of:\n*   American Express\n*   Bank of America\n*   Capital One\n*   Chase\n*   Citi\n*   Credit One Bank\n*   U.S. Bank\n*   Wells Fargo\nAs you shop around and compare credit cards from each of these card issuers, read over each card's benefits guide, which will give you more details about what is and isn't covered, as well as the claim limits.\nThat said, it's also important to consider each card as a whole. If a card has excellent purchase protection but doesn't offer other perks you're looking for, or the best rewards for your spending habits—something that, unlike purchase protection, affects your daily usage—it may not be worth it. END
 TITLE: How Does Credit Card Purchase Protection Work? CONTENT: What Additional Protections and Perks Do Credit Cards Offer?\n------------------------------------------------------------\nDepending on the credit card, you may have access to a suite of perks or just a few. Here are some of the more common credit card benefits you can expect to see as you're researching new card options:\n*   Price protection\n*   Extended warranty coverage\n*   Return protection\n*   Cellphone protection\n*   Travel insurance\n*   Rental car insurance\n*   Trip cancellation or interruption insurance\n*   Trip delay insurance\n*   Baggage delay insurance\n*   Lost luggage reimbursement\n*   Emergency travel assistance\n*   Concierge services\nAll of these benefits can help you when you use your card to shop or travel. Keep them in mind as you compare different card options, and make sure you know which perks your current card offers, so you can take full advantage of them. END
 TITLE: How Does Credit Card Purchase Protection Work? CONTENT: Know Your Credit Score Before You Apply for a New Card\n------------------------------------------------------\nAs you compare different credit card options that offer purchase protection and other benefits, it's important to only apply for cards that you have good odds of getting approved. Check your credit score and report before you apply for any credit card to get an idea of where you stand. Most of the best credit cards require good or excellent credit, which starts at a FICO® Score☉ of 670. You can find out which cards you may be matched to using Experian CreditMatch™.\nIf your score needs some work, your credit score risk factors will tell you what may be hurting your score and how you can address it. It can take time to improve your credit score, but the effort will pay off through better credit card rewards and benefits. END
 TITLE: What Is a Trust and How Can It Help Me? CONTENT: How Do Trust Funds Work?\n------------------------\nA trust fund is designed to ensure that a person's assets are held and managed for the benefit of another person, group of people or organization, with the assistance of a third party. There are three key parties to a trust fund: the grantor, the trustee and the beneficiary.\n*   **Grantor**: The person that sets up the trust fund and places their assets in it. The grantor also creates the rules for how the assets within the fund are managed, accumulated and distributed.\n*   **Trustee**: A third party who is tasked with managing the trust fund. The trustee has a fiduciary duty to the beneficiaries of the trust, which means they must act in the beneficiaries' best interests within the terms set by the grantor. A trustee can be any person or firm the grantor chooses.\n*   **Beneficiary**: The beneficiary of a trust fund can be an individual, a group of people or an organization. The grantor designs the trust for their benefit.\nTrust funds work differently from many other estate planning tools because they make it possible for the grantor to decide when and how their beneficiaries receive the assets meant for them.\nFor example, a grantor may choose to pay the beneficiary a set amount annually or provide a lump-sum payment when they reach a certain age. The grantor may also specify how the funds can be used, such as for college expenses or a home down payment.\nThe grantor may even prohibit certain uses of the trust fund assets. A common provision is the spendthrift clause, which prevents the trustee from distributing money to the beneficiary to pay off debts.\nFinally, a trust fund provides some protection for the assets within the trust. The property in the trust doesn't go through the probate process after the grantor dies, which can be time-consuming and expensive. Also, depending on the type of trust you set up, the assets the grantor places in it may be protected from their creditors. END
 TITLE: What Is a Trust and How Can It Help Me? CONTENT: Types of Trust Funds\n--------------------\nThere are several different types of trusts you can set up, and each provides unique features to meet various needs.\n*   **Irrevocable trust**: Once assets are placed in an irrevocable trust, the grantor no longer has control over them, and it can be difficult to make changes or revoke the trust. Because the grantor no longer controls the assets, they are protected from the grantor's creditors.\n*   **Revocable trust**: This type of trust allows the grantor to continue to control the assets during their lifetime. It's also often called a living trust, and the grantor can make changes to or revoke the trust at will. Assets in a revocable trust fund aren't protected from creditors.\n*   **Blind trust**: With a blind trust, the beneficiary is unaware of who holds the power of attorney to the trust fund.\n*   **Charitable trust**: This trust allows the grantor to make donations to a charitable organization as they see fit.\n*   **Generation-skipping trust**: Specifically designed to benefit a grandchild of the grantor.\n*   **Special-needs trust**: Created for a beneficiary who has special needs. The assets received by the beneficiary from the trust don't disqualify them from government benefits.\nWork with an attorney or financial advisor to discuss the different types of trusts that may apply to your situation and which one is the best option for you and your beneficiaries. END
 TITLE: What Is a Trust and How Can It Help Me? CONTENT: Reasons to Use a Trust Fund\n---------------------------\nWith so many trust fund options available, there are several reasons to consider using one in your own estate planning. Here are some of the top benefits trusts provide:\n*   **Tax planning**: Some states impose some form of inheritance or estate tax, which may reduce some of the assets you leave to your loved ones. A trust fund can protect certain assets from these taxes.\n*   **More control**: The grantor gets to stipulate exactly how the assets in the trust should be managed, accumulated and distributed. Also, hiring a professional third-party trustee can prevent arguments among family members.\n*   ** and avoiding probate**: Once you die, your will goes through the probate process, making the document public for anyone to view. What's more, probate can be a very time-consuming and expensive process. A trust fund may help you avoid the entire process.\n*   **Asset protection**: With some trust funds, your assets in the trust are protected from your creditors. And depending on how you create the rules for the trust, it could also protect them from irresponsible actions by your beneficiaries.\n*   **Charitable giving**: A charitable trust makes it possible to create a long-term plan to donate your assets to a cause you care about the way you want, even long after you're gone.\n*   **Special-needs planning**: If you care for someone with special needs, a special-needs trust allows you to ensure their continued support after you die, without impacting their ability to receive government benefits.\nDepending on your situation, you may also be able to take advantage of other benefits some trusts provide. While many of these scenarios may not occur for some people, it's still a good idea for anyone who's concerned about how their assets or life insurance proceeds will be used after their death to consider a trust fund. END
 TITLE: What Is a Trust and How Can It Help Me? CONTENT: Seek Professional Help to Draft a Trust\n---------------------------------------\nIt's not always necessary to hire a trust attorney to draft a trust, but it's recommended. This is because an attorney understands all the ins and outs of the legal requirements to create one.\nAlso, an attorney can help by learning about your situation and recommending the right trust to best suit your needs, whether that's to minimize taxes, provide for your heirs, protect assets, make charitable donations or whatever else.\nThe cost of hiring a trust attorney can vary depending on the type of trust and your needs, but you can generally expect to pay at least $1,000.\nIf you're planning to hire an attorney, do an internet search for estate planning and trust attorneys in your area. You'll be able to read reviews from past customers and contact the office to find out about costs. Some websites, including Lawyers.com and FindLaw, can help you narrow down your list of options based on your specific needs. END
 TITLE: What Is a Trust and How Can It Help Me? CONTENT: If Now Isn't the Right Time, Keep It in the Back of Your Mind\n-------------------------------------------------------------\nNow may not be the right time to set up a trust. But that doesn't mean it'll never be in the cards. As your financial situation and goals change over time, keep in mind that you may want to use a trust in the future as part of your estate planning. When that time comes, do your due diligence to understand how a trust can serve your needs and where to go to get one set up. END
 TITLE: What Is a Government-Backed Mortgage? CONTENT: How Do Government-Backed Mortgages Work?\n----------------------------------------\nA government-backed mortgage is a loan insured by one of three federal government agencies: the Federal Housing Administration (FHA), the U.S. Department of Agriculture (USDA) or the Department of Veterans Affairs (VA).\nFor each loan type, the backing agency insures the loan amount, protecting the lender in the event a borrower can't repay the debt. The arrangement significantly reduces the risk to lenders and may make it easier for them to offer lower interest rates or low or even no down payment requirements.\nUnlike some other government loans, which you apply for directly with the federal government, government-backed mortgage loans are offered by private lenders. Not all lenders offer each type of loan, though, so you may need to do some research if you're looking for a specific type of mortgage loan.\nGovernment-backed mortgage loans are different from conventional loans—the most popular type of mortgage loan—in a few ways:\n*   Conventional loans are not insured by a government agency, so they're riskier for lenders and tend to have stricter eligibility requirements.\n*   Government-backed loans have different cost structures, including upfront fees and mortgage insurance requirements.\n*   Conventional loans are more popular and accessible than government-backed mortgage loans.\n*   Government-backed loans have certain requirements that you won't see with conventional loans. For example, USDA loans are designed for folks buying a home in an eligible rural or suburban area, and VA loans are reserved for members of the military community and their families.\n*   Fannie Mae and Freddie Mac, which are government-sponsored enterprises but not government agencies, set conforming rules for conventional loans. The two may also purchase and guarantee loans that meet their standards through a secondary market.\nDepending on your situation, it may be a good idea to consider multiple types of mortgage loans to ensure you find the best fit for your needs. END
 TITLE: What Is a Government-Backed Mortgage? CONTENT: Different Types of Government-Backed Mortgages\n----------------------------------------------\nThe three types of government-backed loans are each designed for certain borrowers. Depending on your situation, you may be eligible for just one or multiple. Here's what you should know about each. END
 TITLE: What Is a Government-Backed Mortgage? CONTENT: Get Your Credit Mortgage-Ready\n------------------------------\nRegardless of which type of mortgage loan you end up getting, it's crucial to learn if you need to make some improvements at least three to six months before you apply. Check your credit score and credit report to get an idea of where you stand and also view areas you may need to address.\nAlso, consider using Experian Boost™† to potentially help increase your credit score. The program connects to your bank account and gives you credit for your on-time utility, phone and certain video streaming payments.\nImproving your credit for a mortgage can take some time, but the sooner you begin the process, the easier it will be to stop potentially damaging activities and make the changes you need to qualify for a mortgage loan. END
 TITLE: Can I Get a Credit Card Without a Job? CONTENT: Do You Need to Have a Job to Get a Credit Card?\n-----------------------------------------------\nIt isn't necessary to be employed to get a credit card. However, the Credit CARD Act of 2009 requires card issuers to consider your ability to repay any debt you incur with the account during the application process.\nIn other words, not having a job won't stop you from getting approved, but not having any income might.\nFortunately, credit card issuers can consider any income to which you have reasonable access. If you're 21 or older, that includes:\n*   Income from a spouse or partner\n*   Allowances and gifts\n*   Trust fund distributions\n*   Retirement account distributions\n*   Social Security income\n*   Scholarships and grants (for students)\nIf you're under 21, the list is limited to personal income, allowances, scholarships and grants. If you're unemployed and receive income from any of these sources, you can include it on your credit card application.\nJust note that while you're allowed to report this income, card issuers may ask you the source of your income, and some may prefer certain sources of income over others. END
 TITLE: Can I Get a Credit Card Without a Job? CONTENT: What to Consider Before Applying for Credit With No Income\n----------------------------------------------------------\nWhether you're thinking of getting a credit card or any other type of credit while you're unemployed, it's important to consider the path forward before you pull the trigger.\nThe most important consideration is your ability to pay off any purchases you make. Credit card minimum monthly payments are just a small percentage of your balance—usually with a flat minimum, such as $25—which can make it easy to afford payments during your job search.\nBut if your budget is extremely tight, not being able to make a payment could exacerbate your financial struggles. And if you're late 30 days or more, it will damage your credit score. What's more, late payments remain on your credit report for seven years, and while their influence on your credit score decreases over time, they can still make it difficult to get approved for credit in the future.\nAlso keep in mind that credit cards typically charge higher interest rates than many other loan types. If you can't afford to pay off your balance in full each month, you could end up paying an annual percentage rate (APR) upwards of 20%, especially if your credit isn't in tip-top shape.\nIf you understand these potential dangers and still plan to get a credit card, shop around and compare options. If your credit is good or better—this typically means a FICO® Score☉ of 670 or higher—you may even be able to get a card with an introductory 0% APR promotion, which can give you time to find a job and pay off your debt interest-free.\nIf you're in a financial bind and need cash right away, look into a personal loan, which may charge a lower interest rate than a credit card. END
 TITLE: Can I Get a Credit Card Without a Job? CONTENT: Keep an Eye on Your Credit While You Search for a Job\n-----------------------------------------------------\nUnemployment can wreak havoc on your financial health and make it difficult to keep up with your debt payments. As you search for your next job, check your FICO® Score regularly and watch for changes that could make it difficult to get access to credit when you need it.\nAlso, if necessary, ask your existing creditors about modified repayment options. Lenders are generally willing to work with people who are suffering from financial hardship because it's better than not getting any payments at all. Working with your lender can help you avoid making late payments or getting to a point where your account is sent to collections.\nAs you take these steps to preserve your credit history, you'll be in a better position to get back on your feet financially when you start your new job. END
 TITLE: 7 Ways to Make Money Fast CONTENT: Look for Temporary Work\n-----------------------\nCompanies are often on the hunt for temporary workers, and some jobs don't even require you to leave your house. Websites such as Indeed and ZipRecruiter list a variety of openings for temporary work-from-home jobs in customer service, quality assurance, data entry, tutoring and more.\n*   **Find someone in need of your expertise.** If tutoring is high on your interest list, for example, specialized websites like Tutors.com allow you to sync with students and parents looking for tutors with specific expertise. You also may be able to put your skills to good use online with websites like Upwork and Fiverr. Whether you're experienced in graphic design, web development, writing or coding, these freelancer websites can help you find clients willing to pay for your help.\n*   **Get started with a gig job.** The gig economy also provides opportunities for extra work you can do temporarily, and some options can even become a full-time job. For example, you can work for a ride-hailing or delivery service, such as Uber, Instacart or DoorDash. With these services, you can choose when you work and for how long. Depending on the demand in your area and how many jobs you're able to pick up, a gig economy job could work well for you.\n*   **Find odd jobs near you.** Other websites, such as Thumbtack and TaskRabbit, can help you connect with people who need help with specific tasks, such as handyman work, cleaning, furniture assembly and more. These platforms can help you earn extra cash simply by performing jobs others can't do.\nNo matter what you end up doing, be sure to stay safe and protect not only your personal information, but your physical safety as well. Part-time or temporary work can be hazardous, and you may not have the same recourse or rights as you would working a full-time job. Also, pay attention to any applicable tax laws and follow them to the letter. END
 TITLE: 7 Ways to Make Money Fast CONTENT: Try to Limit Overspending\n-------------------------\nThis tip won't help you increase your income, but it can help you maximize it by freeing up money already in your budget.\nIf you don't already follow a budget every month, making one can be a great first step in understanding where your money is going and where you may be able to cut back. Then as you take inventory of your spending going forward and try to stick with the budget you set each month, adjusting it as necessary, you'll have a better chance of avoiding overspending.\nHere are some tips on how to approach your monthly spending to free up needed cash: END
 TITLE: 7 Ways to Make Money Fast CONTENT: Take Inventory of What You Can Sell\n-----------------------------------\nYou've likely accumulated various items over time that you've since stopped using. Whether it's old clothes, a kitchen appliance, workout equipment or something else, you may be able to come up with a long list of items you can sell to raise much-needed cash.\nAfter you've taken inventory of the items you can stand to sell, consider the best way to proceed. If you have a lot to sell and have the space, a garage sale may be the best way to unload your belongings. If you have more time, though, or your list isn't very long, selling the items on eBay or Craigslist may be a better approach. END
 TITLE: 7 Ways to Make Money Fast CONTENT: Reduce Your Monthly Bills\n-------------------------\nSome of your monthly bills, including your debt and insurance payments, are likely necessities that will be harder to cut than discretionary spending. However, you may still have some opportunities to pay less than what you are currently.\n*   **Insurance**: If you have auto, renters, life or homeowners insurance, shop around and compare rates based on your current situation to see if you can get a lower rate. Be careful of cutting too much coverage, however, as that could backfire if you end up needing your policy down the road.\n*   **Credit cards**: Call your credit card company to see if you can negotiate a lower interest rate on your account. You may also be able to get approved for a balance transfer credit card with an introductory 0% APR promotion, which eliminates interest from the equation entirely for a set period of time as long as you at least meet your minimum payments.\n*   **Phone, internet and cable**: You may have a hard time negotiating a lower monthly bill with these services. However, if you do some research and find that you can get a lower monthly rate elsewhere, you might be able to use that information to talk your current company into reducing your bill to keep your account.\nAny money you save from these cost-cutting endeavors can be used for other important expenses. END
 TITLE: 7 Ways to Make Money Fast CONTENT: Check for Credit Card Rewards\n-----------------------------\nIf you have a credit card that earns you rewards when you make purchases, you may be able to redeem your cash back, points or miles to get some relief during hard times. If you haven't checked your rewards account recently, you may be sitting on a gold mine.\nCash back rewards are the most versatile because you can use cash for just about anything. Alternatively, some points and miles programs let you redeem your rewards for gift cards you can use like cash at popular retailers.\nOne thing to look out for, though: Some points and miles programs also allow you to redeem your rewards for cash back, but at a reduced value compared with other redemption methods. While some programs, such as Chase Ultimate Rewards, give you 1 cent per point in value on cash back redemptions, many others give you as little as 0.5 cents each. END
 TITLE: 7 Ways to Make Money Fast CONTENT: Other Ways to Get Money\n-----------------------\nEvery situation is different, and while some of these ways to make money may work for you, others may not. If you're still in need of some further help, here are some other options you can consider. END
 TITLE: 7 Ways to Make Money Fast CONTENT: Work on Your Credit to Leverage It in the Future\n------------------------------------------------\nThe better shape your credit history is in, the easier it will be to use it during financial emergencies to get access to cash when you need it and have no other options. If your credit score needs some work, take some time to improve it so you can be prepared for a future rainy day.\nSome tips to help you include:\n*   Pay your bills on time every month and get caught up on past-due payments.\n*   Work on paying down your credit card balances.\n*   Avoid closing old credit cards if possible.\n*   Apply for credit only when you need it.\n*   Check your credit report for potential fraud and dispute inaccuracies to have them removed or corrected.\n*   Get added as an authorized user on a family member's credit card account if it has a positive history.\nAs you work to improve your credit, Experian's credit monitoring service can help you stay on top of your score. This free platform provides you with access to your FICO® Score powered by Experian data, real-time alerts about new inquiries and accounts, an online dispute tool and more. END
 TITLE: How to Get Credit During an Economic Downturn CONTENT: What Happens to Credit in a Tight Market\n----------------------------------------\nLending can be a risky business, especially if economic conditions impact borrowers' ability to make their monthly payments. During an economic downturn such as the one caused by the COVID-19 (coronavirus) pandemic, lenders may be more willing to work with existing customers who are struggling to make their payments, by deferring payments, for example. But to make up for that, they also may tighten up their underwriting standards for new applicants.\nWith mortgage lenders, for instance, this may mean you need to have a higher credit score and make a bigger down payment than usual to get approved for a loan. Other loan types may have similar requirements, though with unsecured options like personal loans and credit cards, the emphasis will be on your credit score and history instead of a down payment.\nThe people who may be hit the hardest by these changes include business owners and people with poor credit, who may experience more financial challenges when times are tough than consumers who have excellent credit.\nFortunately, this doesn't mean that all bets are off if you need credit. You just may need to approach the situation differently and take some more time to research your options. END
 TITLE: How to Get Credit During an Economic Downturn CONTENT: What to Do if You Need Credit Now\n---------------------------------\nWhile many major lenders are tightening their credit criteria, you still have some options to gain access to credit. Here are some steps you can take. END
 TITLE: How to Get Credit During an Economic Downturn CONTENT: What to Do if You Can't Find the Credit You Need\n------------------------------------------------\nIf you've taken the right steps to get access to credit and haven't had any success, it may be helpful to turn your focus to your current debt obligations and seek relief there. Here are some actions you can take. END
 TITLE: How to Get Credit During an Economic Downturn CONTENT: Addressing Your Immediate Needs Could Prevent Future Problems\n-------------------------------------------------------------\nIf you find yourself struggling during an economic downturn, you may be wondering if there's a light at the end of the tunnel. While it's impossible to know the future, taking these and other steps to address your immediate financial needs can keep your situation from getting worse, and ultimately make it easier to recover fully. END
 TITLE: What Is Financial Planning and How Can it Help Me? CONTENT: The Benefits of Having a Financial Plan\n---------------------------------------\nUnderstanding where you stand with your money and creating a plan for your financial goals is critical to your financial success. While it's possible to achieve some money goals without a financial plan, it's a lot easier when you have a clear path forward. Having a plan in place serves as helpful guidance when questions of how much to spend and how much to save come up.\nHere are some of the more significant benefits of personal financial planning:\n*   **You'll better understand your current situation.** If you don't budget or keep track of where your money goes, it's hard to know what kind of financial shape you're in. With a financial plan, you'll always have a pulse on your financial health and know what you're capable of doing.\n*   **You'll have a handle on risk management.** Having an emergency fund is essential because you never know when you'll need it. What's more, knowing which types of insurance you need—such as health, life and disability—and how much can provide some protection when things go seriously wrong. With a good strategy, you'll be able to plan for these risk management tools and fit them in your budget.\n*   **You can eliminate debt faster.** If paying off debt is important to you, part of your financial plan can include specific actions you can take to accomplish that goal as fast as possible.\n*   **You can boost other savings goals.** Depending on your goals, you may want to set aside cash for a home down payment, house renovations, a vacation and more. A financial plan can help you map out how you'll meet each of your savings goals, and give you the motivation to do it.\n*   **You'll be ahead on long-term goals.** Whether you're saving for retirement, a vacation or a child's college education, financial planning can help you understand exactly how much you need to accomplish your goal and what you need to be doing now to get there. The sooner you start this process, the easier it will be to get ahead.\nFinally, financial planning can improve your chances of achieving financial freedom. While that term can mean different things to different people, it generally means having a feeling of security and empowerment with your money. END
 TITLE: What Is Financial Planning and How Can it Help Me? CONTENT: How to Form a Financial Plan\n----------------------------\nIf you're at a stage of your life where you've accumulated debt, savings and investments, it may be worth the cost to work with a financial advisor when establishing your financial plan. These advisors are not only well-equipped with knowledge about various financial topics, but they can also provide an objective perspective and opinion about your situation.\nBut if you'd prefer to build your financial plan on your own, follow these tips to get started:\n*   **Acknowledge your goals and priorities.** Everyone is different, so it's important to understand what's most important to you and what you want to accomplish with your money. If you have a partner, it's important to recognize that your goals and priorities may differ. Take some time to communicate, so you're both on the same page.\n*   **Get a grasp of your current financial status.** Start by writing out your income and expenses to get an idea of where your money is going. Also, take stock of your assets, such as savings and investments, and your debts, so you can calculate your net worth.\n*   **Build a budget and cut expenses.** Making a budget is one of the most fundamental things you can do to achieve your financial goals because it helps you take control of how you use your money. Your financial plan may also include a plan to cut expenses so you can gain more cash flow to use for financial goals. Focus first on emergency savings, then on other top priorities after that.\n*   **Make a plan to get out of debt.** Debt payments can make it difficult to accumulate savings, investments and other assets. So take some time to work out a plan to pay down your debt, starting with balances that carry higher interest like credit cards, personal loans and student loans.\n*   **Start saving and planning for retirement.** While retirement is still decades away for some people, the sooner you start planning for retirement, the easier it will be to achieve your goal. Work with a professional or use an online retirement calculator to get an idea of how much you need to be saving, then do your best to do so with what you have.\nAfter you take these initial steps, you'll be in a better position to work on other aspects of your financial plan, such as education savings, a home down payment and more. END
 TITLE: What Is Financial Planning and How Can it Help Me? CONTENT: How Does Your Credit Score Affect Financial Planning?\n-----------------------------------------------------\nYour credit score is a major component of your financial plan, and establishing and maintaining an excellent credit history is crucial.\nThe primary reason for this is that your credit score affects how much it costs to borrow money. Whether you're financing a mortgage or a car, or you're applying for a credit card or personal loan, a higher credit score can get you a lower interest rate.\nHaving great credit can also help you qualify for discounts on auto and homeowners insurance, avoid deposit requirements on utility accounts, or even get into the job or apartment you want.\nIn other words, having a good credit score is key to achieving your financial goals, both now and in the long run. END
 TITLE: What Is Financial Planning and How Can it Help Me? CONTENT: Take Advantage of Free Online Resources\n---------------------------------------\nCreating a financial plan can be a daunting task, but fortunately, there are online tools and resources that can help you. If you have a question about something, the answer is almost always a quick internet search away.\nAlso, there are ways to get free access to your credit score, as well as calculators, budgeting tools, general guidance and more. Take some time to research the different resources that are available, and it can help improve your confidence in yourself and your financial plan. END
 TITLE: Is Now a Good Time to Move? CONTENT: When Is Relocating a Good Idea?\n-------------------------------\nYour household's circumstances will play a big role in determining if relocating is a good idea. After all, making a big move is a much simpler prospect for a single person who rents versus a homeowner with a large family. However, there are good reasons for relocating that can apply no matter your situation:\n*   **You can save money.** Moving might lead to savings on rent, property taxes, utilities or travel costs. Even if your housing expenses stay the same, relocating to an area with a lower cost of living could lead to significant savings. But be careful about breaking a lease if you're currently renting, as that might cost you.\n*   **You're looking for work.** Working from home isn't possible for many jobs, and some areas may offer more (or more lucrative) opportunities.\n*   **You want to be closer to family.** Having family nearby could be important to you during the pandemic and beyond, particularly when there are small children in the family and you can offer or need additional support.\n*   **You want to upsize or downsize.** Perhaps you're looking for an extra room you can use as a home office, a large outdoor space or a smaller home that's easier to maintain.\nThe Pew Research Study found that during the first half of the year, popular reasons for moving included: to reduce their risk of getting COVID-19 (28%), due to closing college campuses (23%), to be with family (20%) or for financial reasons (18%). END
 TITLE: Is Now a Good Time to Move? CONTENT: How Much Will Moving Cost?\n--------------------------\nMoving costs can vary depending on several variables, such as how much stuff you have, how far you're moving, and whether you're hiring movers.\nIf you're moving within a few hours' drive and have a small home, you might be able to hire two movers and have everything done for $500 or less. There could be extra costs to consider, however, such as packing services and insurance. You can also save money by renting a truck and moving everything on your own, if that's a practical option.\nThe moving costs associated with an out-of-state or cross-country move can add up to several thousand dollars. But again, the DIY approach will lead to significant savings.\nIn addition to paying for the move itself, you'll need to budget for the associated expenses. These may include travel costs and temporary lodging and storage if you're not ready to move right into your new home right away (due to remodeling, for instance).\nYou may also need to have cash on hand for a security deposit and the first month's rent. Or, when buying a home, for your down payment and closing costs. If you have poor credit, you could also have to pay a security deposit to open new utility, cable and internet accounts. END
 TITLE: Is Now a Good Time to Move? CONTENT: How Relocating Can Affect Your Finances and Credit\n--------------------------------------------------\nWhether or not you're moving primarily for financial reasons, consider how the move could impact your overall financial situation beyond the upfront expenses.\nThe cost of living and average wages in the new area will be two of the most important factors—try to estimate how much you can expect to earn and how much your monthly expenses might change. If you plan on keeping the same job and working remotely, know that companies may make cost-of-living adjustments, which could lead to a pay cut if you move to a less-expensive area.\nMoving won't directly impact your credit scores, which don't consider your location or income. However, moving could indirectly impact your credit if you forget to make final utility or telecom payments after moving, for example. Or, you may forget to return a cable box or modem, leading to a charge that goes unpaid.\nWhile making the utility and telecom payments won't generally help your credit—unless you use a tool like Experian Boost™† —missing payments could hurt your credit if your account is sent to collections.\nTo avoid this, make sure you update your contact information and mailing address with all your creditors to ensure you'll get notifications for final bills. END
 TITLE: Is Now a Good Time to Move? CONTENT: What About Housing: Should You Rent or Buy?\n-------------------------------------------\nIn addition to deciding where you want to relocate to, you'll have to choose between renting and buying. If both options are available to you, there won't necessarily be a clear answer to which is best.\nIn terms of pure financials, you could use an online rent or buy calculator to see which may be the better option. Generally, if you won't live in the same place for more than a few years, renting may be more cost-effective because buying a home leads to nonrefundable upfront closing costs.\nBut there are many things that'll factor into the decision, such as if your credit is ready for a mortgage. Some people also prefer the flexibility that comes with renting, and prefer not having to be responsible for upkeep and repairs.\nIf you are looking to buy, know that an unexpected impact of the pandemic has been rising home prices due to high demand, low mortgage rates and limited housing availability. This may be especially true in and around major cities. The National Association of Realtors reported that during the third quarter of 2020, single-family home prices increased from last year in all 181 metro areas that the organization tracks—and 117 metro areas had double-digit percentage increases. END
 TITLE: Is Now a Good Time to Move? CONTENT: Get Your Credit Ready for a Move\n--------------------------------\nWhether you're planning on renting or buying, having good credit can make the process easier and less expensive. You can monitor your credit for free with Experian, and get an updated FICO® Score☉ when you sign in to your account. Be sure to review your credit report for errors, which you can dispute online, and learn how to improve your credit over time. END
 TITLE: Assistance Programs for Underserved Communities CONTENT: Personal Finances and Housing\n-----------------------------\nSo many things can impact your wallet, and help with your finances and housing can come in many forms. Organizations may offer subsidized housing or utility payments, direct cash assistance, job training or financial education. Or they may provide access to legal experts who can help you understand and advocate for your rights as a consumer, renter or homeowner.\n*   **Benefits.gov**: This is a great starting place if you're looking for state or federal assistance, including help with housing, utilities, health care, disaster relief and personal finances. Use the benefits finder tool to find out which programs you may be eligible for.\n*   **Local legal aid**: Nonprofit legal clinics may be able to help you with finance- and housing-related legal questions.\n*   **Mission Asset Fund**: Offers 0% interest credit-building loan programs, business loans and loans for people who need help paying U.S. Citizenship and Immigration Services application fees. There's also a free app with educational programs and tools available in multiple languages.\n*   **National Coalition for Asian Pacific Americans Community Development (CAPACD)**: The National CAPACD supports a variety of Asian American and Pacific Islander-focused community organizations. In turn, these organizations may offer services and programs to local community members. For example, the organization's Housing Counseling Network is made up of over a dozen agencies across the country that offer direct services to tenants and homeowners. You can search for a community organization in your state to see what resources it offers.\n*   **NID Housing Counseling Agency**: NID Housing is approved by the Department of Housing and Urban Development (HUD) to offer housing counseling and education services online and in-person. Counselors can offer advice on a wide range of housing-related issues, including renting, buying a home and foreclosure. NID is also the official and preferred housing counseling agency of the National Association for the Advancement of Colored People (NAACP).\n*   **Rent relief**: If you're having trouble making rent, or worry you will in the future, refer to our guide on what to do and where to find additional resources.\nYou can also find additional education and support from organizations that aren't focused on serving members of underserved groups. For example, the National Foundation for Credit Counseling can connect you with a nonprofit credit counseling agency and counselor who can help you create a budget, prepare to buy a home, understand bankruptcy or manage your debt. END
 TITLE: Assistance Programs for Underserved Communities CONTENT: Small Business\n--------------\nBased on who owns your business, you may qualify for a certification, such as a minority business enterprise (MBE) or women business enterprise. The definition of a minority-owned business can vary, but it's often defined as a business that's at least 51% owned by a member of an underrepresented group, such as veterans, Indigenous peoples, women, LGBTQ+ and people of color.\nThese certifications could help your business secure contracts with companies or government organizations. Businesses can also benefit from a designation as it may lead to greater access to financing, training and networking—and appeal to customers.\nHere are some grant and assistance programs for minority-owned businesses.\n*   **Accion's business loan programs**: Accion is a nonprofit that can help you find funding, advisors and local partnerships. The organization has several minority- and industry-specific loan programs that may offer low loan rates and be easier to qualify for than loans from for-profit lenders.\n*   **Black Girl Ventures (BGV)**: BGV offers woman-identifying founders with multiple types of support. There are funding opportunities from Black Girl Ventures, as well as programs that offer mentorship, incubator and connections to become corporate suppliers.\n*   **Digitalundivided**: Digitalundivided offers three programs for Black and Latinx women-led entrepreneurs and startups. There is a virtual training program for those who are starting out, an incubator program for startups and a leadership coaching program for entrepreneurs.\n*   **Grants.gov**: The Grants.gov website and database is home to thousands of grants offered by federal agencies. Although they're not all specifically for minority-owned businesses, you can filter the results and may qualify for a range of grants.\n*   **National Minority Supplier Development Council (NMSDC)**: If your business is a certified MBE, the NMSDC could help match you with member organizations looking to purchase your products or services. The NMSDC Business Consortium Fund also has two loan programs for certified businesses that are at least three years old.\n*   **Start Small Think Big**: If you're looking for guidance, Start Small Think Big specifically works with minority entrepreneurs who have a business with less than $1 million in revenue. The organization connects eligible business owners with volunteer professionals who can offer free legal, financial or marketing advice.\n*   **U.S. Department of Commerce, Minority Business Development Agency (MBDA)**: This agency serves U.S. businesses that are owned and operated by African Americans, Asian Americans, Hasidic Jews, Hispanic Americans, Native Americans and Pacific Islanders. The MBDA might not offer you direct assistance, but it helps run and finance business and specialty centers around the country. Those centers are where you can find help securing financing and getting new contracts or partnerships.\n*   **Venture capital funds**: If you're looking for venture backing, there are venture capital funds that focus on financing underrepresented founders. A few to start with are Backstage Capital, Harlem Capital and Fearless Fund.\n*   **[Women's Business Centers](;pageNumber=1)**: The SBA helps fund over 100 women's business centers across the country, which serve as resource centers for financing and coaching. In spite of the name, some of the centers focus on helping underrepresented business owners in general, not only women.\nThere are also many resources available to small business owners regardless of their identity, and state-specific and local programs that don't get a lot of national attention.\nThe Local Initiatives Support Corporation (LISC) has guides to state-by-state resources for small businesses and small rural businesses. You can also turn to SCORE, a nonprofit Small Business Administration (SBA) partner that can connect you with a mentor who may be able to point you toward local programs. END
 TITLE: Assistance Programs for Underserved Communities CONTENT: Higher Education\n----------------\nMany scholarship and grant programs focus on specific underserved groups, while some are open to a broader range of students who belong to groups that have been historically underrepresented at colleges and universities. In addition to financial assistance, you may receive coaching or mentorship during school and while looking for an internship or job.\nThere are hundreds (if not thousands) of opportunities available, including many at the school-specific level. Here are several to explore:\n*   **American Indian College Fund scholarships**: The American Indian College Fund has a scholarship for American Indian and Alaska Native undergraduate and graduate students who are attending accredited tribal, public and private nonprofit colleges or universities. The site also links to additional scholarship opportunities.\n*   **Asian Pacific Fund**: The Asian Pacific fund coordinates 10 scholarship programs for students with various ethnicities, career ambitions and backgrounds. Review the programs and their eligibility requirements, and know that you can apply for more than one as long as you meet the criteria.\n*   **Gates Millennium Scholars**: The Gates Millennium Scholars Program awards scholarships to 300 minority students each year. The program focuses on helping students who are in the top 10% of their class and have demonstrated leadership abilities.\n*   **Immigrants Rising**: Immigrants Rising has a pre-law fund for undocumented students who are planning to attend law school and want help paying for LSAT prep and law school application fees. Applicants must be undocumented and a California high school graduate or a graduate (or soon-to-be-graduate) of a California college or university to qualify.\n*   **NAACP scholarships**: The NAACP offers several scholarship programs to undergraduate and graduate students. The eligibility, number of awards and award amount varies for each program, and you may need to be a current NAACP member to qualify.\n*   **National Action Council for Minorities in Engineering**: NACME partners with schools and companies to offer scholarships to underrepresented undergraduates majoring in engineering and computer science.\n*   **TheDream.us**: This organization offers two scholarships for undocumented students. One is for high school and community college graduates, and the other is specifically for high school graduates who live in a state that doesn't offer them in-state tuition or admittance because of their citizenship status.\n*   **United Negro College Fund (UNCF)**: The UNCF is one of the largest private minority scholarship providers, awarding over $100 million to students each year. Check the website for a list of opportunities to see which are currently open.\nMany schools also have programs for eligible first-generation and low-income students that provide academic, personal and career support, along with additional financial assistance. These can go by different names, such as Educational Opportunity Programs at the University of California, California State University and State University of New York schools, or the First Generation Organization at the University of Florida. END
 TITLE: Assistance Programs for Underserved Communities CONTENT: Experian's Free Resources\n-------------------------\nExperian also offers a variety of free tools and resources, including access to a free credit score and ongoing credit monitoring and score tracking. We've also put together a pandemic-specific list of resources and credit education hub you can explore to learn more about your finances and credit, and the weekly #CreditChat which brings together financial experts to discuss timely topics. END
 TITLE: How Your Credit Cards Can Protect Your Holiday Purchases CONTENT: Product-Related Purchase Protections\n------------------------------------\nHere are some of the protections you might receive if you purchase a product or gift with your credit card:\n*   **Return protection**: Some retailers extend their return periods during the holidays, but that's not always the case. Fortunately, many credit cards offer return protection, which allows you to return and get a refund on eligible purchases even if the merchant doesn't accept a return. The benefit usually extends your return period to 60 or 90 days after a purchase and may be limited to $250 to $500 per claim. Some purchases might not be eligible, such as jewelry, animals or plants, and you may need to pay for return shipping.\n*   **Purchase protection**: This valuable benefit can reimburse you if an eligible item you buy is damaged, lost or stolen. The protection generally applies for 60 to 120 days from the purchase date, and there may be a limit on the reimbursable amount, such as $500 or $1,000 per item. However, premium cards, such as the Chase Sapphire Reserve®, offer up to $10,000-per-item limits. There are usually annual and lifetime benefit limits to keep in mind as well.\n*   **Extended warranties**: Many credit cards offer extended warranties on eligible purchases. The benefit can give you an additional year or two of coverage if an item is originally covered by a manufacturer's warranty. An extended warranty can apply even if you gift the item, although the recipient may need a copy of your credit card's billing statement when they go to make a claim.\n*   **Price protection**: The price protection benefit lets you get a refund if an item's price drops soon after you make a purchase. Unfortunately, only a few cards still offer this benefit, such as the Capital One Platinum Credit Card.\n*   **Cellphone protection**: A purchase-related perk that some credit cards offer, cellphone protection could cover part of the cost of replacing a lost or damaged phone if you pay the monthly phone bill with your credit card. It could be worth looking into this if you plan on buying yourself (or a family member who is on your phone plan) a new phone.\nThe eligibility, requirements, limits and claim process can depend on your card, and you'll want to read over your cards' benefits to understand what your card offers and ensure your purchases qualifies. END
 TITLE: How Your Credit Cards Can Protect Your Holiday Purchases CONTENT: Travel-Related Insurance and Benefits\n-------------------------------------\nHoliday travel will certainly be different this year. The [Travelocity 2020 Holiday Outlook survey](;afflid=f9d3239e3b700bc6627e7bdbc9bc7e55&cjevent=6ab19f55188811eb80ff006b0a1c0e0c) found 60% of people don't plan on traveling to visit family or friends this year. If you're part of the 40% who will—or you're simply planning a trip to get out of the house—then a credit card's travel insurance and benefits could be important. The coverages may include:\n*   **Rental car collisions and damage coverage**: A rental car collision damage waiver covers damage to and theft of a rental car, but it doesn't cover liability claims, such as damage to other vehicles or property. Depending on the card, the coverage may be secondary to your auto insurance policy, if you have one.\n*   **Travel accident insurance**: An insurance benefit that you hope to never use, travel accident insurance may help cover medical expenses if you or a family member is killed or seriously injured (such as a lost limb or eyesight) on your trip. The insurance is also called accidental death and dismemberment insurance.\n*   **Trip cancellation and interruption coverage**: This insurance benefit may reimburse you for nonrefundable expenses if you have to cancel your trip or end it early due to injury, illness or death of the cardholder, a family member or someone on the trip. It may also cover cancellations and interruptions due to severe weather. We took a closer look at whether these protections will cover incidents related to COVID-19 in a separate post.\n*   **Trip and baggage delay insurance**: Trip and baggage delay insurance protections can reimburse you for expenses you incur due to delays. For example, with the Chase Sapphire Reserve®, you could get up to $500 per ticket for meals, lodging, toiletries and personal items if your trip is delayed by over six hours or you have to stay somewhere unexpected overnight. You could also receive up to $100 a day for up to five days for clothing, toiletries and a cellphone charging cable if you're left waiting for your bags.\nAs with the purchase benefits, the eligibility, requirements and limits can vary widely for travel-related insurance and benefits. Check to see what perks a card offers and what you need to do to receive the coverage. END
 TITLE: How Your Credit Cards Can Protect Your Holiday Purchases CONTENT: Should You Get a New Card for the Holidays?\n-------------------------------------------\nYou may already have a credit card that offers purchase and travel perks, but review your card's guide to benefits to better understand how using the card could keep you protecting during the holidays.\nIt may also be worth getting a new credit card specifically for purchase or travel benefits that your card lacks. For example, the Chase Freedom Flex℠ doesn't have an annual fee and it offers cellphone protection (in addition to cash back rewards, purchase protection and extended warranties).\nYou may also want to look into cash back cards for the holidays. However, don't let the appeal of earning rewards lead you to overspend. Prepare ahead of time with a budget and plan, and then use a credit card to make the purchases and get rewards.\nOr, if you think you'll need to pay off the balance over time, a card that offers new cardholders an intro 0% annual percentage rate on purchases could save you money on interest. Plus, some cards offer an intro bonus if you use the card to spend at least a certain amount during the first few months your account is open. END
 TITLE: How Your Credit Cards Can Protect Your Holiday Purchases CONTENT: Compare Cards Before Applying\n-----------------------------\nIf you think you may benefit from a new credit card—or you want to see how your current cards stack up—compare cards' fees, rewards and benefits. Experian's CreditMatch™ service can make this easier by allowing you to filter cards based on your preferences. In most states, the tool can also match you with cards and personalized offers based on your credit profile.\nAlso, be sure to check up on your credit beforehand to make sure you've addressed anything that could be holding you back. Your credit reports are available for free from all three credit bureaus from AnnualCreditReport.com. You can also get your free credit report and score directly through Experian. END
 TITLE: How to Choose and Use Your First Credit Card CONTENT: Research the Different Type of Credit Cards\n-------------------------------------------\nYou may get overwhelmed by the hundreds—even thousands—of options as you try to figure out which credit card should be your first. Narrowing in on the type of credit card you want and then deciding from within that category can help. Many people find that secured or student cards are a good first card:\n*   **Secured credit cards**: When you open a secured card, you'll give the company a refundable security deposit, which will often be the same as your credit limit. The card issuer holds on to this money and can keep it if you fall behind on your bills, or give it back to you when you close the account after paying your bill in full. Many secured cards have high fees, but there are a few options with low or no annual fee and favorable terms.\n*   **Student credit cards**: Student cards are another popular first option as they're unsecured cards (no security deposit required), but you'll need to be attending postsecondary education to qualify. Some of the best options offer rewards and don't have an annual fee, although you may start with a low credit limit.\nThere are many other types of credit cards, such as rewards cards or cards that offer promotional interest rates that make them a good option for making large purchases. Those cards tend to have stricter requirements and can be difficult to get as your first card.\nThere's also some overlap between the categories. For example, some secured and student cards offer rewards as well.  \nCompare Rates, Fees and Benefits\n--------------------------------\nOnce you narrow in on the type of card you want, you can compare the cards within that category to figure out which one is best for you. Generally, you'll be comparing the fees, interest rates and cardholder benefits:\n*   **Credit card fees**: Some cards have an annual fee (a few even have monthly fees) you'll need to pay to open and keep the card. Additionally, there may be fees for certain actions, such as a foreign transaction fee if you use your card to make a purchase in a foreign currency, or a late fee that's charged if you don't make at least your minimum payment by the bill's due date. Look for cards with few and low fees to save money and get the most benefit out of your card.\n*   **Interest rates**: Credit cards display their interest rates as annual percentage rates (APRs). The higher the APR, the more interest you'll have to pay when you carry a balance from one month to the next. With most cards, you can avoid paying any interest by paying your balance in full every month. However, if you use the card for a cash advance, you'll almost always start to accrue interest immediately.\n*   **Rewards**: Some cards offer an intro bonus to new cardholders who meet the requirements, such as an extra $100 cash back after making $500 worth of purchases. These promotions aren't common on student and secured cards, but you can find cards with ongoing rewards, such as cash back on your purchases. Different cards may offer various intro bonus and ongoing rewards rates.\nHow to Use Your Credit Card Responsibly\n---------------------------------------\nOnce you get your first credit card, there are a few practices that you can follow to avoid interest and fees while building good credit. These guidelines can also help you build up your credit score, as long as the credit card you've chosen reports your payment history to the credit bureaus:\n*   **Only purchase what you can pay off in full.** If you're regularly using your new credit card, only spend what you can afford to pay off in full. It can be hard to keep track of how much you spend throughout the month, but you can create a budget and use an app that connects to your bank and credit card accounts to quickly sync and track everything in one place.\n*   **Always make at least your minimum payment.** Pay off as much of your bill as you can each month, and always make at least the minimum payment on time. Missing your payment can lead to late payment fees. Also, once you're 30 days past due, the card company may report the late payment to the credit bureaus, which can hurt your credit scores.\n*   **Don't max out your card.** While your card's credit limit is the most you're allowed to spend, using a large portion of your available credit can hurt your credit scores. If you're focused on improving your credit, try to never let your balance go above 30% of your credit card's limit.\n*   **Track annual fees.** If you get a card that charges an annual fee, mark your calendar for when the annual fee will be due so you can prepare for its impact on your finances. Before the company charges the fee, call and ask if there's any way to reduce or waive it. If there isn't, and you're not getting a lot of value from the card, consider closing the account to avoid the fee.\nWhat to Do if You're Denied a Credit Card\n-----------------------------------------\nDon't fret if you don't get approved with your first application—you may be able to qualify for other credit cards. But first, try to figure out why your application was denied.\nAsk the card issuer if there was a specific reason, such as your income being too low or not meeting one of the basic eligibility requirements. If the card issuer determined your credit wasn't good enough for approval and denied your application, it must send you an adverse action letter explaining this. If you've received an adverse action letter in the past 60 days, you're eligible to receive a free copy of your credit report through Experian and the other credit bureaus.\nYou can then focus on the issue by increasing your income or building your credit before trying again. Or, if you were denied because you don't have any credit, you could look for a card that doesn't require a credit check. If you pay utility, internet or cellphone bills, Experian Boost™† may be able to give you a much-needed lift.  \nGet Preapproved for a Credit Card\n---------------------------------\nIf you're unsure of which card to get or whether you're likely to get approved, try using Experian CreditMatchTM to compare offers from Experian's credit card partners. The program won't impact your credit scores, but it can still match you to offers based on your credit. END
 TITLE: How to Choose and Use Your First Credit Card CONTENT: What to Do if You're Denied a Credit Card\n-----------------------------------------\nDon't fret if you don't get approved with your first application—you may be able to qualify for other credit cards. But first, try to figure out why your application was denied.\nAsk the card issuer if there was a specific reason, such as your income being too low or not meeting one of the basic eligibility requirements. If the card issuer determined your credit wasn't good enough for approval and denied your application, it must send you an adverse action letter explaining this. If you've received an adverse action letter in the past 60 days, you're eligible to receive a free copy of your credit report through Experian and the other credit bureaus.\nYou can then focus on the issue by increasing your income or building your credit before trying again. Or, if you were denied because you don't have any credit, you could look for a card that doesn't require a credit check. If you pay utility, internet or cellphone bills, Experian Boost™† may be able to give you a much-needed lift. END
 TITLE: Is Now a Good Time to Refinance Your Mortgage? CONTENT: A mortgage refinance replaces your existing loan with a new one. The lender may require you to meet specific criteria, get preapproved, go through underwriting and sign closing documents.\nThere are several options to choose from:\n*   **Rate and term refinance**: This type of refinance can be used to reduce your loan's interest rate, adjust the length of your repayment term—or both. Depending on what you do, this could either raise or lower your monthly payment.\n*   **Cash-out refinance**: If you're looking to access some of the equity you've built up your home, this type of refinance can help you do that. It'll pay off your existing loan with a larger one and you'll collect the difference (minus fees). You may also qualify for a reduced interest rate.\n*   **FHA streamline refinance**: You can obtain a lower rate on your FHA (Federal Housing Administration) loan, minus the credit check and appraisal processes that accompany other refinance options.\n*   **USDA streamline refinance**: You can refinance a loan you received through the U.S. Department of Agriculture (a USDA loan), even if you have minimal or no equity.\n*   **VA interest rate reduction refinance loan (IRRRL)**: These loans lower the interest rate on loans available through the Department of Veterans Affairs. You can roll closing costs and processing fees into the new loan to avoid incurring out-of-pocket expenses when you refinance. END
 TITLE: Is Now a Good Time to Refinance Your Mortgage? CONTENT: Why Now Might Be the Time to Refinance\n--------------------------------------\nRefinancing could have a host of benefits, especially for homeowners who have significantly improved their credit since they were originally approved for their mortgage. Here's why now may be the right time to move forward. END
 TITLE: What Is the Best Way to Save Money? CONTENT: How to Start Saving Money\n-------------------------\nThe first step to saving money is thinking about your goals. Why do you want to save money? Perhaps you don't have an emergency fund and want the security of knowing you're covered if an unexpected expense arises. Or maybe you're trying to squeeze some extra cash out each month to start saving for a down payment on a house or your retirement. You might have a goal to save up for something fun like travel or tickets to that music festival you've been wanting to go to for years. By setting a goal (or several), you can focus on the benefits you'll get from saving instead of feeling deprived or cheated about the things you're giving up.\nSaving money can reduce financial stress and improve your life in many ways. But if you're not in the habit of saving, getting started can be a challenge. If you're unsure where to begin, here are two ideas to help.\n### Pay Down Debt\nIf you owe a large amount of outstanding debt, especially on high interest credit cards, paying down that debt can save you a lot of money in the long run and is a good first step toward saving. To figure out how much debt you actually owe—and to monitor your progress once you start paying it down—check your free credit report.\nWrite down all of your debts, focusing on revolving or high interest accounts first. From there, you can figure out how much extra money you can apply toward eliminating those debts each month.\nYour best bet with credit card accounts is to pay them off in full each month. However, until you can reach that goal, saving on interest offers another way to help you pay down your debt so you can start saving more. Here are a couple ways to do that:\n*   **Get a balance transfer card.** If your credit scores are in decent shape, you might be able to qualify for a new balance transfer credit card offer with a low introductory interest rate. These offers can motivate you to tackle your credit card debt more aggressively because you'll have a period where you'll pay no or low interest on your balance. But you need to manage these cards wisely because once the introductory low rate ends, you don't want to end up with a large balance at perhaps an even higher rate than you were paying before. For more information on whether a balance transfer card might be right for you, see \"Should I Make a Balance Transfer?\"\n*   **Consider a debt consolidation loan.** Consolidating your credit card debt could help you save money on interest as well, though likely to a lesser degree. Paying off your outstanding revolving debt with an installment loan may help you get a better handle on your monthly expenses because you'll have just one payment to make each month instead of several, provided you manage the new account properly and don't take on more credit card debt.\nThere are several other approaches to paying down your credit card balances; check out these tips for paying off your credit cards for more.\n> Find the best personal loans in Experian CreditMatch™.\nAt first, applying extra money from your income to pay down debt might seem like it's costing you more and taking away from your savings goals, but stick with it. In reality, paying down high interest debt will save you money on costly interest and create additional room in your budget once your debt is paid off. For more, see \"How to Get Out of Debt.\"\n### Create a Budget\nPutting as much money as you can toward paying off your credit card debt will eventually free up more money to help you reach your savings goals, but you might even be able to set aside more than you think. The key to figuring out where you can find extra cash to put toward your debt and your savings goals is creating a budget.\nThe first step to creating a budget is tracking your spending. However you manage your money—through an online financial management service, your trusty checkbook or payment apps—figure out how much you spend each month in the following areas:\n*   **Fixed expenses.** These are your regular monthly expenses, or overhead, including rent or mortgage, car payment, student loan payment, utility bills and the like. For bills such as gas and electricity that can vary over the course of a year, figure out the average you pay each month. Experts also recommend committing to a certain amount, even as little as $25 a week to start, to an emergency fund if you don't already have one. While not technically a fixed expense, considering it one will help you stay on track with your savings plan if unexpected expenses pop up.\n*   **Variable expenses.** These expenses are not set and can fluctuate each week, month or year. They include groceries, entertainment, gas, personal services and more.\nThis exercise will give you a good idea of where you can cut back. Map out your monthly expenses and be sure to include your savings goals alongside your monthly bills. Even if you begin by saving just 2% of your income to put toward your goals, it's a start. If you can afford to save a larger amount, go for it. As you save money in specific areas (more on that below), you can free up extra money to set aside for those bigger goals you're trying to achieve. END
 TITLE: What Is the Best Way to Save Money? CONTENT: How to Save Money Daily\n-----------------------\nFiguring out how to save money each month starts with smaller, daily decisions. When you cut daily spending, you can supercharge your budget, potentially helping you reach your savings goals sooner. Check out these five areas where you might be able to save money on a daily or weekly basis.\n*   **Groceries**  \n    When it comes to groceries, there are almost countless ways to save. You can plan your meals around your grocery store's sale flyer, clip coupons, use price comparison apps to find the best prices on the ingredients you need, or shop at a store that offers price matching. One of the best ways to save on groceries is to make a weekly meal plan—for all your meals—and stick to it. Without a plan, it's easy to justify hitting a fast-food restaurant on your way home from work or going out to lunch more, which can add up fast. You don't need to cut out all meals out (see below), but find the best strategies that work for you so you can enjoy the savings.\n*   **Transportation**  \n    One way to offset expensive fuel costs is to open a credit card that offers attractive rewards for gas purchases—as long as you only use it for gas expenses and pay it off each month. Apps like GasBuddy can help you compare fuel prices at your local gas stations as well. Finally, if you live near a coworker, don't overlook the fact that carpooling can be great for your wallet (not to mention the environment).\n*   **Entertainment**  \n    You don't have to give up everything you enjoy, but entertainment is an area where you might be able to spend less. Consider downgrading to basic cable, or cutting the service altogether and swapping it for a more affordable streaming service like Netflix or Hulu. If you don't already have one, get a library card—it's your ticket to free books, audiobooks, movies, TV series, games and music. If you like museums, find out which day of the month they're free to the public and go then. And look for discount tickets on entertainment websites.\n*   **Restaurants**  \n    Reducing the number of times you eat out per week is a great way to put some money back into your budget. Instead of dining out for dinner, consider doing so for lunch when prices tend to be less expensive. You can also brown-bag your lunch on workdays to cut down on food costs. With more fast-casual restaurants than ever—offering some delicious choices—opt to bus your own plate in return for a great meal at a lower cost. Or make it an earlier—and cheaper—night by hitting up a happy hour instead of going out to an expensive dinner.\n*   **Apparel and services**  \n    If you're willing to buy used clothes when you need them, the amount of money you can save on your clothing bill could be substantial. For new apparel, check sales and websites like RetailMeNot in advance to see if any discounts might be available for your upcoming purchase. When it comes to services, see if there's anything you can forgo to make your budget stretch. Cutting your own grass or adding a week or two between haircuts might add up to more savings than you realize. END
 TITLE: What Is the Best Way to Save Money? CONTENT: How to Save Money Monthly\n-------------------------\nOn top of finding ways to save money daily, cutting down your monthly expenses can help you put more cash toward your bigger goals. Take a look at these four areas for opportunities to cut spending.\n*   **Utilities, telecom and public services**  \n    Want to limit your energy usage? Try a programmable thermostat to cut back during times you won't notice the difference (like when you're sleeping or out of the house). A tankless water heater can also lower utility costs, though it will take time for those savings to overtake any upfront costs required to upgrade. Put off buying a new cell phone as long as you can, and make sure your plan fits your needs.\n*   **Health care**  \n    Apps like GoodRX might help you to save money, even if your insurance plan offers prescription drug coverage. Setting up a flexible spending account at work might help you take advantage of tax breaks on health care costs as well. And of course the best way to save on health care costs: Exercise often and eat well.\n*   **Housing**  \n    Is your mortgage interest rate higher than the rates currently available to homebuyers? If so, you might want to consider refinancing your loan to potentially reduce your monthly payment and save on interest. It's also a good idea to compare your homeowner's insurance rates each year to make sure you're getting the best coverage at the lowest cost available. If you're renting, consider a less expensive place while you pay off debt and build your savings, or get a roommate who can share expenses.\n*   **Recurring monthly costs and subscriptions**  \n    If you're like many people, you might not remember all of the recurring monthly bills you signed up to pay. Apps like Truebill can help you to find your monthly subscriptions and cancel the ones you no longer need or want. END
 TITLE: What Is the Best Way to Save Money? CONTENT: Slow and Steady Wins the Race\n-----------------------------\nTransforming yourself from a spender to a saver takes time. Remember to be consistent and patient with yourself as you start to make progress. Celebrate small victories, and as long as you don't give up, those accomplishments can come together to help you achieve some big goals in the future. END
 TITLE: How to Plan Your Estate as a New Parent CONTENT: How to Create a Will\n--------------------\nA will is the basic foundation of an estate plan. If you make a will, your estate will still go through probate, but the process will be faster because the judge can use your will as a guide in making key decisions. Your will should:\n**Name a guardian and trustee for your children.** It's possible you and your spouse could both die or become incapacitated, so you'll want to name one or more people you can trust to care for your children by serving as a guardian or trustee. A _guardian_ will step in to raise them, and a _trustee_ or property guardian will handle their finances and manage any money or property they inherit. Often, the guardian and trustee are the same person, but they don't have to be. You may want to name alternate guardians and trustees in case your first choices can't handle the job or are no longer living when the need arises.\n**Name an executor for your estate.** After you die, your debts need to be settled, your taxes need to be paid and your property needs to be distributed to the beneficiaries you name in your estate plan. Your executor makes sure all of this is handled. The executor can be an attorney or any adult you trust to handle the process. Often, it is a family member, close friend or even an heir.\nIf you don't name an executor, the court will appoint an estate administrator and the judge will direct the administrator how to divide your assets. When choosing an executor, make sure the person is comfortable with the role. Consider naming some alternative executors in case your first choice doesn't want to or can't perform their duties for any reason.\n**Specify who inherits your assets.** In many states, naming someone as the beneficiary of financial accounts, such as bank accounts, retirement plans or life insurance policies, means those assets automatically go to that person when you die. In this situation, as long as you have the desired beneficiary listed on the accounts, you don't need to specify them in your will. For example, if you have employee death benefits from your job, naming your spouse as beneficiary is generally enough to ensure they receive the benefits after your death.\nAssets that you co-own jointly with your spouse, such as real estate, typically do not go through probate; they transfer to the co-owner named on the title. As long as your title to jointly owned assets is properly worded for the laws of your state, your will doesn't need to specify who should inherit the assets.\nYou may have other assets that you want certain people to receive. For example, maybe you want your daughter to inherit your heirloom silverware or your jewelry. You might want to leave money to a favorite charity or to distant family members the court might not consider when distributing your assets. This type of wish should be included in your will.\nA will is _not_, however, a good place for wishes related to funeral ceremonies and the disposition of your body. Since your will may be read weeks after you die, it's better to include things like where you'd like to be buried and where you'd like your services to be held in another document, such as as a health care directive. END
 TITLE: How to Plan Your Estate as a New Parent CONTENT: Assign Power of Attorney\n------------------------\nDeciding on your health care and financial power of attorney is another key element of an estate plan. There are two basic types of power of attorney: financial and health care.\n**Financial power of attorney**: Giving someone financial power of attorney allows that person, known as your _agent_, to make decisions and act on your behalf regarding your finances and property. Power of attorney can be limited to certain situations or be more general; it can be temporary or permanent. For instance, _durable_ power of attorney gives your agent permission to make financial decisions for you even after you become incapacitated due to illness or accident.\n**Health care power of attorney**: Health care power of attorney gives your agent permission to make decisions about your health care if you can't do so. For instance, if you had a serious car accident and were in a coma, the agent could decide what types of measures the doctors should take to keep you alive. Making these tough decisions will be easier for your agent if your estate plan includes a living will, a document that explains the kind of medical care you want in different situations. A living will is sometimes combined with a power of attorney and called an advance directive or health care directive.\nMany people name their spouse or other family member as their agent for financial and healthcare power of attorney. However, you can choose anyone you trust who is age 18 or older. As with executors and guardians, it's wise to name secondary agents in case your first choice cannot fulfill their duties. END
 TITLE: How to Plan Your Estate as a New Parent CONTENT: Consider a Living Trust\n-----------------------\nSetting up a living trust is more complex than just writing a will, but it can be a smart move if you have a lot of assets or a more complex family situation, such as an ex-spouse, children from an earlier marriage or a child with special needs.\nA living trust lets you shift ownership of your assets to a separate fund during your lifetime. This can have some crucial advantages over a will. Assets that are put in a living trust won't have to go through probate, so your heirs won't have to wait to inherit the property. A living trust also provides privacy, because unlike a will, it is not part of the public record. Finally, a living trust may enable you to protect money that would otherwise have to go to creditors after your death.\nLiving trusts may be revocable or irrevocable. A _revocable trust_ can be changed whenever you want, up until your death. During your lifetime, you are the trustee and the property in the trust remains yours. When you die, the property becomes part of your estate, and the successor trustee you selected will distribute it according to your wishes. Once all the assets have been distributed, the revocable living trust is dissolved.\nA revocable trust does not protect the assets in the trust from lawsuits. If you are sued by a creditor and lose the lawsuit, you might have to pay the judgment out of money from the trust.\nAn _irrevocable trust_ cannot be changed once you sign it. All the assets listed become the property of the trust. This means they aren't subject to estate taxes and can't be taken to pay your debts (unless the court determines you're using the trust to illegally hide money from creditors). An irrevocable trust is commonly used by people who have extensive assets. A revocable trust, which offers the flexibility to adjust as your family grows, is the better option for most new parents.\nThere's another reason a revocable trust is generally preferable for young parents. When you apply for a loan, lenders will ask you to list your assets so they can see how much money you have in reserve. Lenders know they can access the assets in a revocable trust if you default on the loan. However, they can't access an irrevocable trust, so you can't list it as an asset. This can make it harder to get a loan. END
 TITLE: How to Plan Your Estate as a New Parent CONTENT: Is Estate Planning Expensive?\n-----------------------------\nDepending on your needs and assets, setting up an estate plan could be as simple as writing a will, choosing beneficiaries, and assigning your financial and health care powers of attorney. There are plenty of websites you can use to create these documents yourself, and that may be sufficient if your needs and financial arrangements are very simple.\nHowever, consulting an attorney can help ensure you aren't leaving anything to chance. Most attorneys offer flat-rate estate planning packages. Another option: Create a do-it-yourself will and pay a lawyer to review it. Since the average hourly rate for an attorney in the U.S. can run from $210 to $350, you may be able to purchase an estate planning package for less than a few hours of an attorney's time. This is usually less costly than working with an attorney from the get-go.\nA 2018 Martindale-Nolo Research\/Lawyers.com survey of people who used attorneys to draw up estate planning documents, 82% paid a flat fee. One-quarter of those paid between $500 and $1,000; 32% paid between $1,000 and $2,000. Some 80% of these respondents set up living trusts, which cost more than wills to create. If you only need a will, your costs should be on the low end of the scale. Many estate planners and attorneys will provide a free initial consultation. END
 TITLE: How to Plan Your Estate as a New Parent CONTENT: Look for Professional Advice\n----------------------------\nDepending on your own financial situation, family needs and available time, you may want to hire an attorney or estate tax professional to help you create your estate plan. To find one, start by asking friends, family, coworkers and other professionals, such as your tax preparer or financial planner, for recommendations. The following resources can also help you with estate planning:\n*   LegalZoom\n*   Nolo\n*   RocketLawyer\n*   Trust & Will\n*   National Association of Estate Planners & Councils\n*   Martindale directory of attorneys END
 TITLE: How to Plan Your Estate as a New Parent CONTENT: Get Your Estate in Order\n------------------------\nLaws related to estate planning vary from state to state, so you should get advice from experts familiar with your state laws to ensure your plan covers all the bases. A lawyer, accountant, life insurance agent and financial planner can all be part of your team, helping you design an estate plan that's right for your family.\nBe sure to revisit your estate plan on a regular basis and whenever you have a major life change, such as having another child, buying a home, getting divorced, moving to a new state or inheriting money. While you're at it, take the time to check your credit score and set up free credit monitoring, which can keep tabs on your credit and alert you to any changes. After all, now that you have children, you have plenty of other things to worry about. END
 TITLE: Do You Really Need a Credit Card? CONTENT: What Are the Benefits of Having a Credit Card?\n----------------------------------------------\nCredit cards can help you do a lot more than just buy things. Here are some other benefits of having a credit card.\n*   **Build credit**: By giving you an opportunity to show how well you manage credit, credit cards are a useful tool to build credit. Most credit card issuers will report your payment activity and account information to the three consumer credit bureaus: Experian, TransUnion and Equifax. Because credit cards give you the flexibility to pay your full balance each month or just pay the minimum, they are a good indicator of how well you manage credit. When you make all your payments on time and avoid maxing out your credit limit, credit cards can help you build a solid credit history.\n*   **Rewards and sign-up bonuses**: Rewards credit cards give you rewards—typically cash back, cash bonuses, miles you can use to pay for travel or points you can use for purchases—based on how much you spend on the card. For instance, you might earn a $500 cash bonus if you charge $3,000 on the card in the first three months after opening your account. Using a rewards credit card wisely can help you pay for travel or other purchases. Just be sure the rewards don't tempt you to spend more than you can afford or build up a big balance you can't pay off.\n*   **Purchasing power**: Credit cards can provide a financial cushion to help you handle emergencies. For example, if your car needs an expensive repair and you don't have the savings to pay for it, using a credit card could get you back on the road quickly so you don't have to borrow from a friend or leave your car in the shop until you can pay for the work. A credit card with a 0% introductory annual percentage rate (APR) on purchases could help you finance big purchases, such as appliances, furniture or a vacation, and pay for them over the introductory APR period without accruing any interest.\n*   **Fraud protection**: Using a credit card can provide more security than carrying cash or using a debit card. For example, if someone steals your credit card or card number and makes an unauthorized purchase, federal law limits your liability to $50, and many credit card issuers won't hold you liable at all. Card issuers may also offer cardholders other types of fraud protection, such as dark web monitoring for your personal information, virtual credit card numbers you can use to pay online, and contactless payments, all of which can help keep your card and your identity more secure.\n*   **Other protections**: Paying with a credit card can help protect you in other ways. For instance, credit cards that offer extended warranties, or purchase protection for lost or stolen items you purchase with the card, can save you money and headaches. If you buy something with a credit card and the product shows up damaged, isn't as advertised or never shows up at all, you can dispute the charge with the credit card company to have it removed. Some credit cards also offer travel insurance or rental car insurance when you use the card to purchase travel or rent a car. END
 TITLE: Do You Really Need a Credit Card? CONTENT: Debit Cards vs. Credit Cards\n----------------------------\nCredit and debit cards may seem the same—after all, both are plastic cards you can use to make purchases. However, there are some key differences between the two that you should understand.\n**_Credit cards_** are a form of borrowing called revolving credit. When you first receive a credit card, the issuer determines an amount up to which you can borrow (your credit line). Each time you use the credit card, the card issuer pays the merchant and then adds that amount to your card's balance (the amount you owe). When your monthly bill is due, you can choose to make the minimum payment, pay more than the minimum or pay your balance in full.\nA **_debit card_** is a way to make cash purchases without carrying actual cash. The card is linked to your checking account; when you use it, money from your bank account is transferred to the merchant's account. Payments occur in real time, so as soon as you make a purchase, your bank account goes down by that amount.\nFraudulent use of debit and credit cards is handled a bit differently too. If your credit card is lost or stolen and someone uses it to buy things, the charges are added to your balance, and you don't lose any money immediately. Report the fraud to the credit card issuer, and legally, the most you'll be liable for is $50. Many credit cards today have zero fraud liability.\nDebit card fraud can have a bigger impact on your finances for a couple of reasons. First, the money leaves your account immediately—which can put you in a bind if, say, the rent is due and your checking account has been cleaned out. Second, you have fewer protections against debit card fraud. Here's how it works:\n*   If you discover and report the fraud to the bank within two business days, the most you can be liable for is $50.\n*   If you report the fraud after two business days but within 60 days, you can be liable for up to $500.\n*   If you wait more than 60 days, however, you might not get any of your money back. In fact, if the criminal took money out of accounts linked to your checking account, such as your savings account, you may not get a refund for that either.\nEven if you notify the bank of the fraud within two days, you'll need to wait for the bank to investigate before reimbursing you. In some cases, you could wait up to two weeks to get your money back. Keep an eye out for debit card fraud by checking your bank account online regularly, looking for any suspicious or unusual transactions.\nGiven the differences between the two types of cards, when should you use each of them? Use a debit card if:\n*   **You're worried about debt.** For everyday purchases, like buying groceries, using a debit card can be a good way to keep your spending under control.\n*   **You're getting cash from an ATM.** You won't pay any fees if you use your debit card at an affiliated ATM. However, if you use a credit card to get cash, you'll likely have to pay a cash advance fee of 3% to 5% of the amount withdrawn. What's more, interest begins accruing on the cash advance immediately, which makes this a costly way to get cash.\nUse a credit card if:\n*   **You're trying to build credit.** Because debit cards are cash transactions, banks don't report them to credit reporting agencies. As a result, using a debit card doesn't help you build a credit history or improve your credit score.\n*   **You're shopping online.** Using a credit card to limit your liability for unauthorized charges can be a smart way to play it safe when shopping online.\n*   **You're traveling.** If you're on a trip and want access to more cash than you have in your checking account, use a credit card to enhance your purchasing power. If you have a card that earns rewards on travel purchases, all the better.\n*   **You're making a big purchase.** If you have issues with the item after you buy it, using a credit card enables you to dispute the charge and possibly get it removed. END
 TITLE: Do You Really Need a Credit Card? CONTENT: Although credit cards can help you build credit, they aren't absolutely essential to doing so. Here are some ways to build a credit history without credit cards.\n*   **Pay your bills on time.** Payments on installment loans, such as car loans, student loans or personal loans, are reported to the credit bureaus, so making loan payments on time can help you build a credit history and improve your credit score.\n*   **Become an authorized user on someone else's credit card.** Do you have a trusted family member who has excellent credit and is willing to add you to their credit card account? When you become an authorized user on their card, the account will be added to your credit report, and you'll benefit from the primary cardholder's credit score. Although the primary cardholder is ultimately responsible for all charges, you can build credit by using the card and making timely payments. For the greatest benefits, choose a card that's been open a long time and has a low credit utilization rate (meaning only a small percent of the available credit is being used).\n*   **Get a credit-builder loan.** These unique loans, offered by credit unions, community banks and online lenders, are designed to help people build credit. When you apply for a credit-builder loan, the lender puts the loan amount into a savings account. You make monthly payments on the amount over six to 24 months, and payments are reported to the credit bureaus. Once the loan is paid off, you can access the money. Credit-builder loans generally range from $300 to $1,000. What matters is not the amount but paying it back, so be sure to choose a loan with manageable payments for you.\n*   **Sign up for Experian Boost™† .** This free service adds your on-time payments on utility, phone and streaming bills to your Experian credit report, which can help improve your Experian credit scores quickly. Normally, these payments aren't reported to credit reporting agencies.\nAlthough the options above can help you build credit, there's another reason to consider a credit card: Your credit mix. Credit mix is an important factor in your credit score and refers to how many different types of credit you manage. If you have installment credit such as a student loan or car loan, getting a credit card will add revolving credit to your credit mix, which can improve your credit score.\nIf you're worried that having a credit card will tempt you to overspend, consider getting a secured credit card. A secured credit card requires you to make a deposit, typically between $200 and $2,000, that the issuer uses as collateral. Your credit limit is generally equivalent to your deposit. By using the card to make small purchases and paying your balance on time each month, you can improve your credit score. Eventually the card issuer may convert your card to a regular unsecured credit card. END
 TITLE: Do You Really Need a Credit Card? CONTENT: Should You Get a Credit Card?\n-----------------------------\nIf you're not sure where your credit stands, get a free copy of your credit report and credit score. Once you have a credit card, use it for small purchases and pay it off on time each month to help your credit score improve. Then consider using free credit monitoring to keep an eye on the results of your credit-building efforts.\nA good credit score can help you qualify for low interest rates and favorable terms on auto loans, personal loans, mortgages and more. Good credit can also make it easier to buy insurance or rent an apartment. Clearly, helping you build credit is just one way having a credit card can make life a little easier. END
 TITLE: Understanding Credit Card Insurance Protection CONTENT: How to Get the Most Out of Your Credit Card's Insurance Policy\n--------------------------------------------------------------\nIf your credit card offers insurance policies, read your cardholder agreement carefully to understand what is covered by the insurance and what isn't. Most policies have exclusions and limitations on coverage.\nFor example, your card's insurance may cover a stolen cellphone but not a lost one. Understanding details such as how quickly claims must be made and what reimbursement limits apply can save you pain down the road. If you're in doubt about any aspect of your insurance coverage, contact the credit card issuer for clarification.\nYou should also keep records of all of your purchases made with the card, including any receipts, warranties or other documentation. You may need this information to make a claim.\nOnce you understand the specifics of your coverage, you can plan purchases to maximize any insurance your card offers. For instance, you can pay your cellphone bills with a card that offers cellphone protection or make travel arrangements with a card that offers travel protection. END
 TITLE: Understanding Credit Card Insurance Protection CONTENT: Credit Cards With the Best Insurance Offerings\n----------------------------------------------\nHere are a few credit cards that offer insurance plus some other appealing perks.\n*   **Chase Sapphire Preferred® Card**: You don't have to be a world traveler to benefit from the Chase Sapphire Preferred® Card. This card offers trip delay insurance, baggage reimbursement of up to $3,000 per person per trip for lost luggage, trip cancellation and interruption insurance of up to $20,000 per trip or $40,000 per year, and rental car insurance. The card also offers solid travel and dining rewards with flexible redemption options. Whether at home or on the road, you'll also enjoy an extra year's warranty and purchase protection up to $500 that covers theft and damage on qualifying purchases within 120 days of purchase. The APR is 15.99% to 22.99% variable depending on your credit. The annual fee is $95.\n*   **Capital One Venture Rewards Credit Card**: Another option is the Capital One Venture Rewards Credit Card. Earn a one-time intro bonus of 60,000 miles once you spend $3,000 on purchases within 3 months, plus unlimited 2 miles per dollar on every purchase. There's a $95 annual fee and a variable APR of 17.24% to 24.49% depending on your credit.  \n    On the road, you'll appreciate the rental car collision insurance, 24-hour travel assistance to replace a lost or stolen card, and travel accident insurance that kicks in automatically when you use the card to purchase your fare. The card also includes an appealing purchase-related protection in the form of an extended warranty on eligible items. You'll also have access to concerts, sporting events and premier dining experiences, as well as online shopping tools Paribus and Wikibuy, which help you find the best prices on online purchases.\n*   **Wells Fargo Visa Signature® Card**: Even before you consider the insurance features, there's a lot to like about this card: no annual fee, flexible rewards points and a 0% introductory APR on purchases and balance transfers for 15 months. (After that, your APR will be 12.49% to 25.49% variable.) The Wells Fargo Visa Signature® Card also boasts plenty of insurance benefits, including trip cancellation insurance, lost luggage reimbursement, 24\/7 travel and emergency assistance, roadside dispatch service and rental car collision coverage. Travel confidently with up to $1 million in coverage for accidents while on a plane, ship or train trip paid for with your card.  \n    You can shop confidently, too, with purchase protection for the first 90 days, price protection for 60 days, and one year of extended warranty protection on eligible purchases. The Wells Fargo Visa Signature Card includes cellphone insurance and 24\/7 concierge services.\nAdditional Credit Card Perks\n----------------------------\nIn addition to insurance features, many credit cards offer other perks you may not be aware of. These include:\n*   **Emergency travel assistance**: If you get sick, injured or involved in a legal tangle on a trip, many credit cards provide emergency travel assistance. This can include medical, legal and transportation assistance or referrals; help replacing lost eyeglasses, passports or prescriptions; or even getting messages to your family in an emergency.\n*   **Roadside assistance**: If your car or rental car runs out of gas or breaks down on the road, your credit card may offer roadside assistance to help. Some roadside assistance programs just send help; others also cover some or all of what it costs to help you out.\n*   **Access to special events**: Some credit cards give you access to preferred seating or presale tickets for concerts, sporting events, plays or elite experiences such as gourmet food or wine tastings.\n*   **Concierge services**: If your life is hectic, a credit card that includes concierge services can help. Concierge services can assist in planning trips, score you reservations at hot-spot restaurants or tickets to events, and even help buy and ship birthday gifts.\n*   **ShopRunner membership**: If you frequently shop online, you'll appreciate a credit card that gives you complimentary membership to ShopRunner. Normally $79 annually, this service offers unlimited free two-day shipping, free return shipping, discounts and more.\nDo You Need a Credit Card With Insurance?\n-----------------------------------------\nInsurance benefits alone aren't a reason to choose one credit card over another. However, insurance can be a valuable perk, especially if you travel frequently and would like a little peace of mind when planning a trip. Looking for credit cards with travel and purchase insurance coverage can take a bit of legwork, but if you ever need to make a claim, the rewards can be worth the effort. END
 TITLE: Understanding Credit Card Insurance Protection CONTENT: **Chase Sapphire Preferred® Card**: You don't have to be a world traveler to benefit from the Chase Sapphire Preferred® Card. This card offers trip delay insurance, baggage reimbursement of up to $3,000 per person per trip for lost luggage, trip cancellation and interruption insurance of up to $20,000 per trip or $40,000 per year, and rental car insurance. The card also offers solid travel and dining rewards with flexible redemption options. Whether at home or on the road, you'll also enjoy an extra year's warranty and purchase protection up to $500 that covers theft and damage on qualifying purchases within 120 days of purchase. The APR is 15.99% to 22.99% variable depending on your credit. The annual fee is $95. END
 TITLE: Understanding Credit Card Insurance Protection CONTENT: **Capital One Venture Rewards Credit Card**: Another option is the Capital One Venture Rewards Credit Card. Earn a one-time intro bonus of 60,000 miles once you spend $3,000 on purchases within 3 months, plus unlimited 2 miles per dollar on every purchase. There's a $95 annual fee and a variable APR of 17.24% to 24.49% depending on your credit.  \nOn the road, you'll appreciate the rental car collision insurance, 24-hour travel assistance to replace a lost or stolen card, and travel accident insurance that kicks in automatically when you use the card to purchase your fare. The card also includes an appealing purchase-related protection in the form of an extended warranty on eligible items. You'll also have access to concerts, sporting events and premier dining experiences, as well as online shopping tools Paribus and Wikibuy, which help you find the best prices on online purchases. END
 TITLE: Understanding Credit Card Insurance Protection CONTENT: Additional Credit Card Perks\n----------------------------\nIn addition to insurance features, many credit cards offer other perks you may not be aware of. These include:\n*   **Emergency travel assistance**: If you get sick, injured or involved in a legal tangle on a trip, many credit cards provide emergency travel assistance. This can include medical, legal and transportation assistance or referrals; help replacing lost eyeglasses, passports or prescriptions; or even getting messages to your family in an emergency.\n*   **Roadside assistance**: If your car or rental car runs out of gas or breaks down on the road, your credit card may offer roadside assistance to help. Some roadside assistance programs just send help; others also cover some or all of what it costs to help you out.\n*   **Access to special events**: Some credit cards give you access to preferred seating or presale tickets for concerts, sporting events, plays or elite experiences such as gourmet food or wine tastings.\n*   **Concierge services**: If your life is hectic, a credit card that includes concierge services can help. Concierge services can assist in planning trips, score you reservations at hot-spot restaurants or tickets to events, and even help buy and ship birthday gifts.\n*   **ShopRunner membership**: If you frequently shop online, you'll appreciate a credit card that gives you complimentary membership to ShopRunner. Normally $79 annually, this service offers unlimited free two-day shipping, free return shipping, discounts and more. END
 TITLE: Understanding Credit Card Insurance Protection CONTENT: Do You Need a Credit Card With Insurance?\n-----------------------------------------\nInsurance benefits alone aren't a reason to choose one credit card over another. However, insurance can be a valuable perk, especially if you travel frequently and would like a little peace of mind when planning a trip. Looking for credit cards with travel and purchase insurance coverage can take a bit of legwork, but if you ever need to make a claim, the rewards can be worth the effort. END
 TITLE: How to Make a Financial Plan CONTENT: What Is Financial Planning?\n---------------------------\nFinancial planning involves building a strategy to accomplish your financial goals. A financial plan gives you a roadmap for navigating all the monetary decisions that go into realizing your hopes and dreams.\nIn the short term, this plan can help ensure you're able to meet your current financial obligations, such as credit card bills and mortgage payments. In the long term, the plan can help you set aside money for things like retirement or a home purchase.\nFour benefits of putting together a financial plan are:\n1.  Getting a handle on your financial situation: A financial plan helps you track how much money you're earning, saving and spending. By establishing a budget, you know where you stand financially and can more easily prepare for the future.\n2.  Preparing for the unexpected: As part of a solid financial plan, it's smart to set up an emergency fund. This pool of money can help you weather tough times, such as the loss of your job or a long hospital stay. A financial plan also can help you figure out your needs for health, life or disability insurance.\n3.  Paying off debt: If you're coping with debt from sources like credit cards and student loans, a financial plan can help erase it. The plan should include steps you can take to eventually become debt-free, such as zeroing in on high interest debt before addressing lower interest debt.\n4.  Realizing other savings goals: Maybe you're itching to spend a week on the beach in Hawaii or you're putting away money for a down payment on a home. A financial plan can lay out ways to attain these types of short-term savings goals. END
 TITLE: How to Make a Financial Plan CONTENT: You may choose to create a financial plan on your own or hire a financial planner who will work with you to put your goals into action. In either case, you'll need to start with the following steps. END
 TITLE: How to Make a Financial Plan CONTENT: Should You Get Financial Planning Help?\n---------------------------------------\nAre you overwhelmed by the thought of creating a financial plan? If so, you might want to consult a financial advisor. Only 18% of U.S. adults turn to financial advisors for retirement advice, according to a 2019 survey commissioned by the Certified Financial Planner Board of Standards.\nFinancial advisors provide advice to clients about matters like investments (including mutual funds, stocks and bonds), taxes, insurance and estate planning. Financial advisors strive to help clients achieve short-term and long-term financial goals, and may invest money on behalf of the client depending on the type of advisor and your preference. While robo-advisors do not offer this kind of hands-on assistance, they can help carry out investment decisions.\nOne of the most common types of financial advisor is a certified financial planner (CFP). These planners might work at a bank or investment firm, or operate their own firm. Certified financial planners must adhere to rigid requirements set by the Certified Financial Planner Board of Standards. One thing to keep in mind about CFPs is that some receive commissions or fees on investments and other financial products, while others make money only from fees paid by their clients. END
 TITLE: How to Make a Financial Plan CONTENT: The Bottom Line\n---------------\nNo matter whether you hire a financial advisor or go solo, creating a financial plan is an important exercise. It gives you a strong sense of where you are and where you're going in your financial life—and it boosts your odds of safely riding out a short-term financial wave and smoothly sailing toward a long-term financial goal like retirement. END
 TITLE: Best Online Business Loans CONTENT: Here are some of the most popular direct online business lenders to consider.\n**Balboa Capital**  \nBalboa Capital offers short-term business loans for amounts ranging from $5,000 to $250,000. There's no collateral required, and loans are available with terms of three to 24 months. The loans can be used for any business purpose.\nTo qualify for a business loan from Balboa Capital, you must have been in business for at least one year, have annual sales of $300,000 or more, and have a \"decent\" credit score. The company considers both your business and personal credit scores, which can be helpful in creating a fuller picture of your overall creditworthiness. Simply fill out the online application, and the company's website says you can expect to get a quote and qualify in an hour. Depending on the loan amount requested, your loan may be funded the same day.\nLoans are repaid either daily or weekly through an automated clearing house (ACH) transfer from your business bank account. You can also pay off your entire loan at any time without a prepayment penalty.\n**OnDeck**  \nOnDeck offers short-term loans of $5,000 to $250,000 and repayment periods of up to 18 months. Payments are fixed, so there are no surprises, and are made automatically either daily or weekly via withdrawals from your business bank account. You can apply either online or by phone and potentially receive financing the same day for loans of up to $100,000.\nTo qualify for a short-term loan from OnDeck, you must have been in business for at least one year and have a business bank account, a personal FICO® Score☉ of at least 600 and annual revenues of at least $100,000.\nIf you qualify for OnDeck's 100% Prepayment Benefit option, you can pay your loan off early and have all remaining interest waived with no penalty or fee. However, loans with the Prepayment Benefit have a higher interest rate. If you're not sure whether this is worth the cost, OnDeck's SMART Box® Capital Comparison Tool can help you break down loan costs and evaluate your options.\nNeed another loan later on? Current OnDeck customers who take on a new OnDeck small business loan can have the remaining interest on outstanding loans waived or can receive an origination fee as low as 0% on the new loan.\n**ForwardLine**  \nIf your personal credit score is only fair and your annual revenues are small, ForwardLine might be able to help. This direct lender, which has been around since 2003, offers short-term loans of up to $150,000 for six to 15 months; typically, loan amounts are 10% of a business's annual revenue. Loans are repaid daily or weekly through automatic ACH withdrawals.\nTo qualify for a ForwardLine loan, you'll need to have been in business for at least two years, have a FICO® Score of 500 or better and have annual revenues of $50,000 or more. You'll also be asked to provide at least three months' worth of business bank account statements. Simply complete a quick online application, submit the bank account statements and you could get financing the next business day.\nIf you don't qualify, ForwardLine will refer you to its network of partner lenders, which could help you find financing elsewhere.\n**CAN Capital**  \nIn business for over 20 years, CAN Capital offers short-term loans of $2,500 to $250,000 with terms of six to 18 months. After you apply, CAN Capital reviews your information and if you're prequalified, you can select the loan amount and term length you want. Funds can be deposited as fast as the next business day.\nPayments are fixed and are made daily or weekly via automated ACH deduction from your business bank account. After the first 90 days, you may be eligible for a prepayment discount.\nTo qualify for a CAN Capital loan, you must have been in business for at least six months, have at least $150,000 in gross revenues, have less than $175,000 in outstanding tax liens or judgements, and have no personal or business bankruptcy that has not been discharged for at least a year. END
 TITLE: Best Online Business Loans CONTENT: Pros and Cons of Online Business Loans\n--------------------------------------\nOnline business loans offer a lot of benefits for small business owners seeking money in a hurry, but there are also some downsides to be aware of.\n**Pros**:\n*   **Quick access to cash**: Many online lenders can fund your loan the next business day or even the same day if you are approved.\n*   **Fast approval process**: Because they don't require as much documentation as banks do and use advanced technology to assess loan applications, you will usually get an answer from an online lender within a day.\n*   **Access to smaller business loans**: It can be hard to get small loans from a bank—and anything under $350,000 is considered small in the world of Small Business Administration-guaranteed loans.\n*   **More flexibility with credit score**: Online lenders often cater to small businesses that have fair to poor credit scores or minimal credit history and may not qualify for bank loans.\n*   **More flexibility with loan use**: Online lenders typically place no restrictions on what the loan can be used for.\n**Cons**:\n*   **Lower loan limits**: Loans from online lenders tend to top out at around $250,000. If you're looking for more than that, you'll be more likely to find it at a traditional lender.\n*   **Higher interest rates**: The tradeoff for the speed, ease and flexibility of online loans is often higher interest rates than business loans from traditional lenders.\n*   **More frequent payments**: While traditional business loans are paid back in monthly installments, online lenders may require weekly or even daily payments drawn from your business bank account.\n*   **Less flexibility with loan use**: Traditional lenders generally want to know what you will use your loan for and may have restrictions on how you can use it. For example, each type of SBA loan is limited to very specific uses.\nSince the terms of any online loan will vary depending on your qualifications, you can't always get complete details about a loan from the lender's website. When considering any online business loan, be sure to find out about interest rates, origination fees and other fees; prepayment penalties; and whether any personal guarantee or lien on your business is required.\nAlso ask whether the lender reports your payment information to the three major business credit bureaus: Experian, Dun & Bradstreet and Equifax. If they do, making on-time loan payments can help to build a business credit history and improve your business credit score, which can make it easier to get a loan in the future. END
 TITLE: Best Online Business Loans CONTENT: Alternatives to Business Loans\n------------------------------\nWhen your small business needs financing in a pinch, a business loan isn't your only option. Here are some financing alternatives that can provide the cash you need.\n**Business line of credit**: A small business line of credit is a kind of revolving credit. As with a credit card, the lender assigns you a credit limit. When you need money, you can draw from the credit line, up to your limit. You don't start repaying the line of credit until you actually draw funds from it. As you pay down the credit line, the funds become available for you to use again. You can carry a balance as long as you make your minimum monthly payment, giving you the flexibility to make smaller payments when business is slow and bigger payments when business is good. Just be aware that any unpaid balance will accrue interest.\n**Invoice financing**: If you have business-to-business customers that take a long time to pay, such as corporate or government clients, one option is selling your outstanding invoices to an invoice financing company. The financing company pays you a percentage of the invoice value (generally about 85%). After the full payment is collected from the customer, you'll receive the rest of the invoice amount, minus the fee the financing company charges.\n**Merchant cash advance**: Businesses that take most of their payments by credit or debit card may be able to use a merchant cash advance. The lender advances you money based on your projected future payment card sales. You repay the advance via daily or weekly payments pulled from your payment card sales. Although merchant cash advances can be helpful in an emergency, high interest rates make it a very expensive type of financing.\n**Equipment financing**: As the name implies, equipment financing is used to pay for new business equipment. The equipment itself serves as collateral for the loan, much like an auto loan. You can find equipment loans offered by online lenders, specialized equipment financing companies, and equipment manufacturers or resellers.\n**Business credit card**: You can use business credit cards to pay for equipment, inventory, material or business services. Many business credit cards also offer valuable perks like rewards or cash back on products and services businesses frequently buy. If you use a business credit card to get a cash advance, however, you're using one of the costliest forms of business financing, as the cash advance annual percentage rate (APR) is generally much higher than the purchase APR. END
 TITLE: Best Online Business Loans CONTENT: Improve Your Credit Score to Get an Online Loan\n-----------------------------------------------\nOnline lenders generally consider your personal credit score as well as your business finances when deciding whether to approve your loan request. To find out what your personal credit score is, get a free credit score from Experian.\nYou may be able to get an online loan with a personal FICO® Score as low as 500, but because this is considered a poor credit score, you'll likely pay a relatively high interest rate for the money you borrow. Improving your personal credit score can help you qualify for more favorable credit terms in both your business and personal life.\nYou can improve your personal credit score by paying down debt, paying your bills on time and maintaining low or no balances on your credit cards. To build your business credit score, get a federal Employer Identification Number (EIN), open business bank accounts, pay your bills on time and make sure your suppliers, vendors and business credit cards report your payments to the business credit bureaus. END
 TITLE: Do I Need a Good Credit Score for Pet Insurance? CONTENT: Does Your Credit Score Affect Your Ability to Get Pet Insurance?\n----------------------------------------------------------------\nPets are considered property, so pet health insurance is classified as property and casualty insurance, similar to home and auto insurance. In many states, insurance companies check what's called your credit-based insurance score when considering your application for home or auto insurance and deciding your rates. Credit-based insurance scores are different from FICO or VantageScore® credit scores because they help predict whether you're likely to file an insurance claim.\nDo insurers check your credit-based insurance score when you apply for pet insurance? In California and Massachusetts, it's illegal to use credit scoring when writing an insurance policy. If you live in any other state, however, the answer is as hazy as a cataract in an old dog's eye.\nNeither the National Association of Insurance Commissioners nor the North American Pet Health Insurance Association (NAPHIA) are aware of credit scoring being used in writing pet insurance policies. However, both acknowledge that it _might_ be happening depending on state laws.\nThe upshot: Maintaining a good credit score is always a smart idea, but it probably won't affect whether you can get pet insurance or how much you pay for it. That depends primarily on your pet. END
 TITLE: Do I Need a Good Credit Score for Pet Insurance? CONTENT: What Factors Affect The Cost of Pet Insurance?\n----------------------------------------------\nAlthough dogs are the most commonly insured pet, you can get pet health insurance for all kinds of animals, including cats, rabbits, ferrets, exotic birds, reptiles, potbelly pigs and rodents. The key factors affecting the cost of pet health insurance are the coverage you choose (more on that in a moment), where you live and the pet you want to insure.\nWhy does your location affect the cost of pet insurance? Generally, since it costs more to run a veterinary practice in urban areas, veterinary care in big cities can be more expensive.\nPrimarily, though, the species, breed and age of your pet are the considerations that'll determine what your policy will end up costing you. Some species and breeds cost more to care for or are more susceptible to medical problems than others. Purebred animals often have hereditary conditions; for example, English bulldogs frequently suffer from hip or elbow dysplasia, allergies and respiratory problems. Larger animals that need bigger doses of prescription medications and animals that live longer also cost more to insure. Older pets are more likely to have problems requiring medical care.\nThe NAPHIA reports that small, spayed, mixed-breed female dogs or cats are the cheapest to insure; large, purebred and short-nosed dogs are the most expensive. (One reason insurance for female pets is cheaper: Pet health insurance usually doesn't cover pregnancy-related care.) END
 TITLE: Do I Need a Good Credit Score for Pet Insurance? CONTENT: How to Choose the Right Pet Insurance Policy\n--------------------------------------------\nGenerally, there are three types of pet health insurance you can buy.\n1.  Accident-only insurance covers medical care related to an accident.\n2.  Wellness covers routine or preventative care.\n3.  Accident and illness offers more comprehensive coverage for accidents, routine care and treatment for illnesses.\nWithin those three categories, there's a wide range of coverage, so it's important to know exactly what a specific policy includes. Here are some questions to ask when comparing pet insurance:\n*   **What treatment is covered?** Not all pet insurance policies are created equal. For instance, some wellness policies cover dental care, prescriptions and medical tests, while others do not. If you're getting an accident-only plan, does eating rat poison constitute an accident, or does it only cover things like road accidents?\n*   **Are preexisting, congenital or chronic conditions covered?** Some policies exclude such conditions, while others will cover them on a limited basis. For example, if your pet got cancer and treatment was covered by insurance company A, cancer will be considered a preexisting condition if you switch to insurance company B. However, it's also possible insurance company A will categorize cancer as a preexisting condition when your policy comes up for renewal and exclude it from coverage.\n*   **What costs are you responsible for?** Just as with auto or home insurance, you'll pay a deductible when you make a pet insurance claim. The insurer then pays a percentage of the remaining costs for covered treatments. For example, suppose your pet needs a $10,000 surgery, your policy deductible is $100, and your copay or coinsurance is 80%. You pay $100; the insurance pays 80% of the $9,900 remaining (or $7,920); and you'll be responsible for the remaining $1,980.\nHowever, there's some fine print to be aware of when it comes to deductibles and reimbursement levels. Like human health insurance, some plans require you to meet a certain deductible for the year before they pay out any benefits; others just charge a per-treatment deductible. In addition, some plans reimburse a percentage of the \"usual and customary\" costs of certain procedures—which may not reflect what your vet actually charges.\n*   **What are the benefit limits?** Pet health insurance policies generally have limits on how much they'll cover per pet, per illness or accident, or per year.\n*   **How will benefits be paid?** Some insurers pay the vet directly, but in most cases, you'll pay the veterinarian out of pocket and submit a claim to get reimbursed by the insurance company.\n*   **Are hereditary conditions excluded?** Some pets are prone to certain conditions because of their breed; often, these will be excluded from coverage.\n*   **What is the waiting period?** All pet insurance policies have a waiting period, generally 30 days or less, after which the policy goes into effect and you can make a claim for illnesses that begin after the waiting period.\n*   **Is a medical exam required?** Some insurers require proof your pet has been seen by a vet in the past year before they will issue a policy.\n*   **Are you limited to a provider network?** You may have to use a vet from the insurance company's provider list to be covered. If you already have a vet you love, make sure they are part of the network.\n*   **Are there extra benefits?** For example, some policies cover treatment if your pet is ill or injured on a trip outside the United States. Others cover the cost of advertising for a lost pet and paying a reward for its return. END
 TITLE: Do I Need a Good Credit Score for Pet Insurance? CONTENT: How to Save on Pet Insurance\n----------------------------\nShop around and compare various policies to get the best price on pet insurance. Be sure you're evaluating the same levels of coverage. You can save on pet insurance by:\n*   **Choosing accident-only coverage**: Just as with human health insurance, you can save money on premiums by purchasing insurance for catastrophic coverage only. Budget the money you save for your pet's routine care.\n*   **Opting for a higher copay**: Reducing coinsurance from 90% to 70%, for instance, could save you some money. (Just make sure you can afford the higher copay.) Before reducing your coverage, find out whether you can bump it up again if you choose; some insurers don't allow this.\n*   **Purchasing a policy when your pet is young**: It's harder to get pet insurance as your pet gets older; in fact, some insurers won't write policies for pets over a certain age. Like people, older animals usually need more medical care as hereditary conditions arise or chronic diseases set in. If you get insurance when your pet is young, however, you can usually keep the policy for the life of your pet.\n*   **Keeping your pet healthy**: There's a lot you can do to maintain your pet's health yourself. Brushing your pet's teeth, feeding them a good diet and providing plenty of exercise will keep your pet in good shape, and help to prevent many health problems.\nPet insurance isn't the only way to save money on pet health care. Some veterinarians participate in discount programs that charge a membership fee in return for lower rates on care with veterinarians in the network. Veterinarians affiliated with animal rescue organizations may offer discounts for rescue pets. Your community or local animal shelter may periodically offer low-cost vaccination or spay and neuter clinics. Sometimes you can get a lower price for your pet's prescriptions by filling them at a pharmacy for humans. Ask your vet about suggestions for lowering the cost of your pet's medical care.\nVeterinary visits aren't cheap, and pet insurance can help protect your pocketbook—but it's also a complicated insurance product with lots of factors to consider. Taking the time to thoroughly research the pros and cons of every policy you consider will help you choose the best pet insurance for both your pet and your budget. END
 TITLE: How Do I Choose a Business Credit Card? CONTENT: Learn How Business Credit Cards Work\n------------------------------------\nSmall business credit cards are similar to personal credit cards in many ways, but there are some important differences to be aware of. Because they're intended for business use, these cards have features that can help companies better manage their finances, such as the ability to track and categorize expenses, prepare taxes and generate spending reports.\nYou don't have to have employees, be incorporated or even operate under a DBA to qualify for a business credit card. Even if you're a freelancer, self-employed sole proprietor or gig worker, a business credit card can help you keep your business expenses separate from your personal expenses, which is important at tax time.\nMany business credit cards also offer rewards or discounts for buying products and services businesses frequently need. While a consumer credit card might offer rewards for buying groceries, for example, business credit cards typically allow you to earn rewards for business-related purchases such as travel, phone services, advertising or office supplies.\nBecause business credit cards are exempt from many of the consumer protection provisions of the Credit CARD Act of 2009, they offer fewer protections than personal credit cards. However, many card issuers opt to have their small business cards comply with most of the laws affecting personal credit cards. Read the terms of your business credit card agreement carefully to see what protections are included.\nAs you look for business credit cards, you may also run across business _charge cards_. Both let you make purchases without using cash, but that's where much of the similarity ends. With a credit card, you can choose whether to pay your balance in full by the end of month or carry a balance to the next one. If your cash flow is down to a trickle one month, you could make the minimum payment on your credit card and avoid a late fee. With a charge card, you must pay your balance in full every month or be charged a fee. Charge cards don't charge interest because it's assumed you'll never carry a balance, nor do they have preset spending limits.\nIf you have employees who travel, entertain clients or make other purchases for your business, getting employee credit cards for them can simplify the payment process. Most business credit cards offer free employee cards. The employee essentially becomes an authorized user on the account, and can use their card to cover work-related expenses. You'll be responsible for all charges your employees make; however, you'll also get all the perks, such as rewards points or airline miles. END
 TITLE: How Do I Choose a Business Credit Card? CONTENT: Know Where Your Personal Credit Stands\n--------------------------------------\nCorporate credit cards, which large companies use for their employees, are issued based on the business's credit, and the business is responsible for charges. When you apply for a small business credit card, however, you must personally guarantee responsibility for all charges made on the account, and the card issuer will look at your personal credit score rather than your business credit score when deciding whether to approve you.\nCheck your personal credit report and credit score before you start researching business credit cards. If your credit score isn't quite high enough to qualify for the business credit card you want, take steps to improve your score before you apply.\nOnce you get your business credit card, keep in mind that how you use it will affect your personal credit score. Most small business credit cards report your payment history and balance to the major consumer credit bureaus (Experian, TransUnion and Equifax). Some also report to the major business credit bureaus, which can help build your business credit score. END
 TITLE: How Do I Choose a Business Credit Card? CONTENT: Figure Out How You Will Use Your Business Credit Card\n-----------------------------------------------------\nReviewing where your business does the most spending will help you choose a business rewards credit card that works best for your needs. For instance:\n*   Do you and your employees travel often? If so, consider the Business Platinum Card® from American Express, whose raft of travel perks could make the high annual fee worth it. However, unlike a typical credit card, the Business Platinum Card® from American Express allows you to carry a balance for some charges, but not all.\n*   Do you need to finance a big purchase in the near future? The U.S. Bank Business Platinum Card offers an introductory 0% APR on purchases and balance transfers for a generous 20 billing cycles before a variable rate of 9.99% to 17.99% APR applies.\n*   Do you want to earn cash back without worrying about a bunch of spending categories? The Spark® Cash from Capital One card keeps it simple.\nEstimating how much your business spends per month on average will help you figure out whether you'll spend enough to earn rewards points and potential intro bonuses. Intro bonuses, which typically reward you with cash back or points, generally require a certain level of spending within a few months of being approved for the card. If you're planning to make a big purchase, such as new computers for your business, using your new business credit card for that purpose can help you get the sign-up bonus. END
 TITLE: How Do I Choose a Business Credit Card? CONTENT: Look at the Costs and Fees\n--------------------------\nThere are several costs and fees you should consider when choosing a business credit card. Here's a closer look.\n**Annual fee**: Business credit cards may have annual fees ranging from under $100 to $500 and up. High-fee cards generally offer premium rewards, such as luxury travel or dining perks, access to concierge services, statement credits and membership programs. To decide if a card with a high fee is worth it, assess how much and where you're likely to use the card, and whether the rewards you'd earn would surpass the annual fee. (Keep in mind that your annual fee is generally tax deductible as a business expense.)\n**Interest rate (APR)**: If you carry a balance on your business credit card rather than paying it off every month, you'll be charged interest on the balance. Interest on credit cards is expressed as the annual percentage rate (APR). Comparing APRs across different credit card offers can be tricky because most offers express the APR as a range. Once you're approved, you'll be assigned an APR within that range based on your credit. If you have good credit, you may qualify for the lowest APR a card offers, but if your credit is fair or poor, you will probably be charged a higher APR—so take that into account when comparing cards.\nThere are also different types of APRs. The purchase APR applies to purchases you make with the card, but many business credit cards charge different interest rates on balance transfers and cash advances. In addition, a card may offer an introductory 0% APR on purchases, balance transfers or both for a limited time (after which the standard APR will apply). Finally, if you miss a payment, you might face a penalty APR that can be close to 30%.\n**Transaction fees**: You may have to pay fees for certain transactions. For example, many credit cards charge a fee if you get a cash advance or do a balance transfer. Some credit cards also charge foreign transaction fees on purchases made outside the U.S. In most cases, these fees are either a percentage of the advance, transfer or purchase, or a flat fee, whichever is greater. If you often travel outside the U.S. for business, you'll want to avoid cards with foreign transaction fees.\n**Penalty fees**: If your payment is late or your check is returned, many credit cards impose a late payment fee or returned payment fee.\nAll rates and fees for a business credit card must be clearly stated in what's called a \"Schumer box.\" The Schumer box can usually be found by clicking on links from the card's dedicated webpage that say \"pricing and terms,\" \"rates and fees,\" \"terms and conditions\" or something similar. END
 TITLE: How Do I Choose a Business Credit Card? CONTENT: Best Business Credit Cards\n--------------------------\nHere are a few of the best business credit cards to consider, depending on your needs.\n**Best for Financing a Big Purchase: U.S. Bank Business Platinum Card**  \nFinance a big purchase or transfer a balance from a high-interest business credit card and take advantage of an introductory 0% APR on purchases and balance transfers for 20 billing cycles. Even after the intro period ends, the variable APR of 9.99% to 17.99% is quite low compared with that of many business credit cards. There are no rewards with this card, but there's no annual fee either. So if you have a big business expense coming up and want to repay it over time while enjoying a low APR after the intro period ends, the U.S. Bank Business Platinum Card could be the one for you.\n**Best for Frequent Business Travelers: Business Platinum Card® from American Express**  \nIs business travel a way of life for you and your employees? If so, this card's $595 annual fee could be worth it for the luxury perks you'll enjoy. Earn 75,000 Membership Rewards points when you spend $15,000 on eligible purchases within the first 3 months of card membership. You'll earn 1 point for each dollar spent on eligible purchases, 1.5 points on every eligible purchase of $5,000 or more, and 5 points per dollar for flights and hotel stays purchased at amextravel.com. Use points to pay for all or part of an eligible fare and get 35% of those points back. Get up to $200 in baggage and other incidental fee credits annually for one airline you select (you can change to another airline later if you'd like), and fee credits for Global Entry or TSA Precheck. There are no foreign transaction fees. Terms apply.\nTo make your trips easier, you'll have access to over 1,200 airport lounges in 130 countries once you enroll in Priority Pass Select. Concierge services provide complimentary assistance arranging lunch meetings, getting event tickets to entertain clients and more.\n**Best for Cash Back: Spark® Cash from Capital One®**  \nSmall businesses know cash is king, and the Spark® Cash from Capital One® card offers a straightforward way to earn cash back on almost everything. Get 2% unlimited cash back on all purchases and redeem your rewards as a statement credit or check at any time. Spend $4,500 within 3 months of enrolling in rewards membership and get a $500 bonus. There are no foreign transaction fees, and the $95 annual fee is waived for the first year; however, the 20.99% variable APR on purchases is a bit steep. END
 TITLE: How Do I Choose a Business Credit Card? CONTENT: Making the Most of Your Business Credit Card\n--------------------------------------------\nChecking your personal credit report and credit score before you apply for a business credit card will boost your chances of getting approved. Once you have your business credit card, make sure you understand the terms of any rewards programs so you can get the most from your card.\nRemember, as the primary account holder, you'll see the effects on your personal credit score if you miss a payment or let your business credit card balance get out of hand. To prevent any problems, use the card's reporting features to stay on top of due dates, employee usage and overall spending. Used wisely, a business credit card is a valuable tool to help your small business manage its money more effectively—and earn rewards in the process. END
 TITLE: Will Your Business Credit Card Show Up on Your Personal Credit Report? CONTENT: How Can Business Credit Cards Affect My Personal Credit?\n--------------------------------------------------------\nThere are some instances when a business credit card will almost certainly affect your individual credit, and others when it depends on the company that has issued you the card.\nBusiness credit cards could affect your credit when:\n*   **You apply for a business credit card.** Issuers will check your personal credit when deciding whether to approve you for a business credit card. That will result in a hard inquiry on your credit report, which could have a brief negative effect on your credit score. It's more troubling to lenders if you have multiple hard inquiries on your credit report in a short time frame (except in cases when you're shopping for the best rate on a single loan type, such as an auto loan). Choose the business credit card you apply for carefully so you have the best shot at getting approved the first time around.\n*   **The issuer reports business card activity to consumer credit bureaus.** Any debt you incur on the card, and the payments you make toward it, may appear on your individual credit report if the credit card company you choose sends that information to the three consumer credit bureaus: Equifax, Experian and TransUnion. If your business credit card behavior makes its way to your personal credit report, it will affect your credit score in the same way as other credit cards do. On-time payment history and a low credit card balance will help your credit. Any missed payments will negatively impact your score; so will a high credit utilization rate, or the amount of available credit you're using.\nSeveral issuers don't report business credit card activity to consumer credit agencies, though, and others only report negative information, such as when you pay late. Ask the company you're interested in working with about its policy before applying for a card.\n*   **Your company falls behind on payments.** To get a business credit card, you'll likely be required to make a personal guarantee, which means you're on the hook to pay for the charges on the card if the business can't. If at that point you aren't able to pay the bills yourself, missed payments will appear on your credit report, and you could be sued for the debt. When applying for a business credit card, read the terms and conditions and look for language that says you could be responsible for the debt, even if you leave the company. END
 TITLE: Will Your Business Credit Card Show Up on Your Personal Credit Report? CONTENT: Can a Business Credit Card Improve My Credit?\n---------------------------------------------\nJust as negative information on a personal credit report can lower your credit score, positive information can bolster it:\n*   If your business credit card behavior shows up on your personal report, making payments on time—which accounts for 35% of your FICO score—can contribute to a strong score.\n*   Your card's credit limit will add to your total available credit. If you pay off business expenses along with any personal purchases each month, you'll have an even lower credit utilization rate than before.\n*   Length of credit history is also a factor in your credit score. If your company no longer uses a particular business credit card, consider keeping it open so your average age of accounts stays as high as possible.\nWhen you establish business credit, you'll also begin building a business credit score separate from your personal credit score. It's a number from zero to 100 that reflects how much debt a business carries and whether it repays debts on time, similar to an individual's FICO or VantageScore. Your business credit card activity will contribute to your business credit score, and you can also ask vendors to report positive payment history to commercial credit bureaus to improve it. END
 TITLE: Will Your Business Credit Card Show Up on Your Personal Credit Report? CONTENT: The Bottom Line\n---------------\nBusiness and personal credit often overlap. But you can search out ways to limit your business's effect on your personal credit, including by applying for business credit cards only through issuers that don't report business card activity to the three main credit bureaus.\nIt's always crucial to keep a close eye on your credit report to make sure there aren't any errors, which could needlessly damage your score. Once you start a business, that's even more important: Financial institutions will likely check your personal credit when deciding whether to extend business credit to you, especially when your venture is new.\nRegularly check your credit report so that you can get resolve any inaccuracies you find—and strengthen your personal credit score before it needs to go to work for you. END
 TITLE: How Do I Get an Unsecured Business Loan? CONTENT: How Unsecured Small Business Loans Work\n---------------------------------------\nUnlike most traditional business loans, unsecured loans don't require collateral for loan approval. This means you don't have to give your lender access to your business or personal assets if you can't pay back your loan.\nA unsecured small business loan works like this: Your lender agrees that you have the income available to make your loan payments over the life of the loan. By allowing you to get financing without collateral, your lender is showing confidence you'll pay back the loan. END
 TITLE: How Do I Get an Unsecured Business Loan? CONTENT: Some lenders make it difficult to get a loan without putting up collateral. By not securing the loan, the lender is taking on a lot more risk. If the borrower suddenly can't pay, the lender won't have assets available to recover the cost of the loan.\nMost lenders, for example, require all new borrowers to start with a secured business loan. After a relationship is established, you may qualify for an unsecured loan. Building that relationship with your lender can cost a lot of money and time.\nThere are options, however, for unsecured small business loans that have higher approval odds. Alternative lenders—lenders that aren't a major bank, often doing business only online—sometimes have an easier application process and may not require collateral. If you're a business owner thinking about applying for an unsecured loan, an alternative lender may be your best option. END
 TITLE: How Do I Get an Unsecured Business Loan? CONTENT: Types of Unsecured Business Loans\n---------------------------------\nThere are several types of business loans that don't require collateral. Depending on your business's financing needs and income, some of these options may make more sense for your company.\n### Long-Term Loans\nThough uncommon, you may be able to find a long-term business loan that doesn't require collateral. Terms on a long-term loan can range from a few years to a few decades. Since most long-term loans are for larger amounts and require many years of repayment, lenders are less likely to offer an unsecured long-term option without having a history with your business.\n### Short-Term Loans\nShort-term business loans, on the other hand, often are offered with no collateral requirements. If qualified, you can find many options for short-term unsecured loans from online lenders. Most short-term loans have a repayment period of one year or less. They're often a good type of loan to use to get through a slow period, pay unexpected expenses or take advantage of a time-sensitive growth opportunity. An unsecured short-term loan can be a great option for small business owners.\n### Merchant Cash Advance\nAnother type of unsecured business loan is a merchant cash advance. Ideal for businesses that do a lot of credit and debit card sales, this unsecured loan is repaid using a fixed percentage of daily credit card sales. There are no fixed payments required for a merchant cash advance. Instead, a percentage of your daily credit or debit card sales goes to paying back the loan.\nBefore you decide if a merchant cash advance is right for your business, be sure you look at the loan's interest rate and the percentage of sales your lender requires. You may find that a high interest rate and loan repayment terms that require a large percentage of daily sales reduce the benefits of an unsecured merchant cash advance. END
 TITLE: How Do I Get an Unsecured Business Loan? CONTENT: Advantages of Unsecured Small Business Loans\n--------------------------------------------\nMany small business owners are willing to do whatever it takes to ensure the survival of their business. This often means taking risks. An unsecured loan helps you minimize those risks by not requiring you to tie your personal or business assets to a loan. It also minimizes the risk to your personal credit in the event your business defaults on loan that's connected to your personal credit. END
 TITLE: How Do I Get an Unsecured Business Loan? CONTENT: Finding the Right Unsecured Business Loan\n-----------------------------------------\nThere are many options for an unsecured business loan. You can help the success of your business by choosing the best loan for your needs. Make sure you shop for potential lenders and pick one that has a record of success in unsecured loans for businesses.\nChoosing an unsecured business loan is a smart choice for most business owners. You'll be able to help keep your personal and business assets safe by funding business needs through an unsecured loan. END
 TITLE: How to Get a Small Business Loan With Bad Credit CONTENT: Do I Need a Business Credit Score for a Small Business Loan?\n------------------------------------------------------------\nIf you've been in business less than a year, you won't have a business credit score, because credit reporting agencies don't yet have enough information about how your business manages debt. Instead, lenders will look at your personal credit score to determine if you're qualified for a loan. In general, traditional lenders (banks and credit unions) want to see a minimum personal credit score of 650 before approving you for a loan, and many require a score of 680 or more.\nIf you've been in business for more than a year, lenders will consider both your business credit score and your personal credit score. (If you're not sure what your business credit score is, get a free copy of your business credit report to find out.) Traditional lenders will weigh your business credit score more heavily, while alternative financing sources (such as online lenders) focus on your personal credit score and financial indicators such as your business's revenues or receivables. END
 TITLE: How to Get a Small Business Loan With Bad Credit CONTENT: To get a business loan with bad credit, follow these steps:\n*   **Check your credit score.** Check your personal credit score and your business credit score by getting copies of your credit reports. Review the reports for any errors and contact the credit bureaus to dispute any mistakes you find. Knowing where your credit score stands can help you determine the types of loans for which you're most likely to qualify.\n*   **Research your options.** Look for a business loan that will give you the amount of money you need for the lowest cost and has a repayment term that works for your situation. (Keep reading for more details on different kinds of business loans for people with bad credit.)\n*   **Write a business plan.** Some lenders ask for a business plan as part of your loan application. Even if your lender doesn't require one, writing a business plan is a smart move. If your poor credit score stems from money management problems, having a well-thought-out business plan will help keep you from making the same mistakes with your business finances. You can get free advice on your business plan from expert consultants at SCORE (Service Corps of Retired Executives) or your local Small Business Development Center (SBDC). Do you prefer the do-it-yourself approach? Try searching for business plan templates online.\n*   **Provide collateral.** Putting up collateral can improve your chances of getting a business loan with bad credit. If you can't repay the loan, the lender will take your collateral as payment. Avoid using personal assets, such as your home, as collateral for a business loan. If your business fails, you could end up losing both your business and your home. Instead, choose a loan that lets you use business assets like equipment or outstanding receivables as collateral.\n*   **Find a cosigner.** If you want to get a business loan but you have bad credit, see if you can find someone with a good credit score who's willing to cosign the loan for you. Since this person is guaranteeing they will take over the loan payments if you can't, it's essential to make sure that they can afford to do so and that both of you are truly comfortable with the arrangement. END
 TITLE: How to Get a Small Business Loan With Bad Credit CONTENT: Types of Small Business Loans for Bad Credit\n--------------------------------------------\nIt's difficult to get a traditional business loan from a bank if you have poor credit. Fortunately, there are many other sources of financing you may be able to use.\n*   **Business credit cards**: Using a business credit card not only gives you access to capital, but can also help improve your business credit score if you make your payments on time. As a result, a business credit card can be a good financing option for a startup business that needs to build a credit history. (Make sure to choose a business credit card that reports your payments to the major credit reporting agencies; not all of them do. You may have to contact the card issuer to get this information.) Since business credit cards have higher interest rates than many other types of financing, they're best for financing small amounts that you know you can pay off in full quickly.\n*   **Short-term loans**: Both traditional and alternative lenders offer short-term loans, which generally have terms from six to 24 months. Instead of a fixed monthly payment, some lenders automatically withdraw payments from your business's bank balance daily, weekly or monthly.\n*   **Short-term lines of credit**: These offer terms similar to short-term loans, except they are revolving credit (like credit cards) rather than installment loans (which require fixed monthly payments). Business owners often turn to short-term loans or short-term lines of credit when they need working capital to pay for expenses such as payroll or inventory.\n*   **Invoice factoring**: Small businesses that have unpaid receivables can turn them into cash using factoring. Factoring companies buy your unpaid invoices from you for a percentage of their value (typically about 80% to 85%). The factor collects payment on the invoices from your customers and pays you the balance of the invoice minus the factoring fees. The value of your invoices, not your credit score, is the primary consideration for factors.\n*   **Invoice financing**: Although similar to invoice factoring, this short-term financing method has some key differences. Instead of buying your invoices, the financing company advances you the value of the invoices. You're responsible for collecting payment from your customers and paying back the loan and any related fees.\n*   **Equipment financing**: Do you need to buy equipment for your business? This type of loan is used to finance the purchase of equipment using the equipment itself as collateral (kind of like a car does for a car loan). This helps to keep interest rates relatively low, although those with bad credit will pay more interest. Equipment manufacturers are the best place to look for equipment loans; there are also third-party equipment lenders, including Currency Capital, CIT and Balboa Capital.\n*   **Microloans**: If you only need a small amount of money (anywhere from $500 to $10,000), a microloan from a nonprofit organization could be the answer. These loans are primarily intended for business owners who live in underprivileged communities or run socially responsible businesses. Your business's goals must also align with those of the nonprofit, such as creating new jobs for people in poverty. Poor credit isn't a deal breaker for microloans; however, the lender may require you to get regular business counseling or take business classes as a condition of approving obtain the loan. You can check out popular microlenders such as Kiva and Accion to find out more about microloans.\n*   **Merchant cash advance**: Businesses that accept a high volume of credit card payments (such as retailers or restaurants) may qualify for these short-term loans for people with bad credit. The lender advances you a lump sum against your business's future credit card sales and then collects a percentage of those sales from you every day. Since payments are based on sales, you won't have to make a big payment on a day with slow sales. However, merchant cash advances have high interest rates and high fees, so most businesses should use them as a last resort. END
 TITLE: How to Get a Small Business Loan With Bad Credit CONTENT: What to Consider Before Applying for a Business Loan\n----------------------------------------------------\nTo improve your chances of being approved for a business loan, understand these key factors before you apply.\n### Factors that Impact Your Approval Odds\n*   **Type of lender**: Traditional lenders have strict requirements for loan approval. Most require completing a multi-page loan application and providing three years' worth of financial statements and a business plan They'll also look at both your personal and business credit scores, so you'll need a solid business credit history. Getting approved for a traditional bank loan can take months. In contrast, alternative or online lenders typically have much more lenient requirements. For example, they may ask to connect to your accounting software or check your business bank statements. If you meet their criteria, some alternative lenders will approve your loan within minutes.\n*   **Personal credit score**: As we mentioned earlier, 650 is the minimum personal credit score you'll need to be approved for a traditional business loan. However, even alternative lenders have minimum credit score requirements. In general, you'll need a score of at least 500 to qualify for a business loan from an alternative lender; if your score is 600 or more, you'll have more options.\n*   **Age of business**: Traditional lenders typically ask for three years' worth of tax returns and financial statements as part of your loan application. If you've been in business less than three years, you're likely to have trouble getting loan approval from these lenders. Alternative lenders have less stringent requirements for the age of your business; in fact, many cater to fledgling businesses.\n### Factors to Compare When Choosing a Loan\nIdeally, you'll end up with more than one loan option to choose from. To determine the best loan for your business, compare these factors:\n*   **Loan term**: Short-term loans are generally for 24 months or less. Mid-term loans are typically for two to five years.\n*   **Interest rate and APR:** Know both the interest rate and the annual percentage rate (APR), which encompasses the interest rate plus any loan fees or other loan costs. Also take into account the total interest you'll pay over the life of the loan.\n*   **Loan limits**: It's harder to get a second business loan when you already have an outstanding loan. Try to get one loan that provides the full amount you need so you won't have to apply to multiple financing sources.\n*   **Loan fees**: Make sure you understand all the fees involved in your loan. These may include origination fees, underwriting fees, closing costs, late fees and factor fees.\n### Factors That Lenders Consider\nWhat factors do lenders consider when reviewing a business loan application? Here's what they want to know:\n*   **Annual revenue**: Traditional lenders will examine past years' financial statements to see if your business has a steady income. Online lenders are more likely to approve businesses with lower revenues. Keep in mind that impressive annual revenues can help to offset a bad credit score and make it easier for your business to get a loan.\n*   **Cash flow**: Even businesses with strong revenues will struggle to get approved for a loan if they have poor cash flow. Lenders want to make sure you have adequate cash flow to pay back the loan and still cover your other business obligations.\n*   **Current debt load**: Lenders will assess the amount of debt you're currently carrying to be sure you can handle the additional debt.\n*   **Business plan**: Traditional lenders will review your business plan, looking for a sound business model, a strong management team and realistic financial and sales projections. Alternative lenders typically don't ask for a business plan.\n*   **Loan purpose**: Traditional lenders want to know exactly what you'll use the loan proceeds for and the financial impact the loan will have on your business, such as increasing sales or boosting production. END
 TITLE: How to Get a Small Business Loan With Bad Credit CONTENT: How to Get a Business Loan With Better Terms\n--------------------------------------------\nWhat if none of these loan alternatives provide a loan that fits your needs? If you can't get approved for a business loan that suits you now, don't give up. Follow these steps to help you qualify for a business loan with better terms in the future.\n*   **Improve your personal credit score**: Start by bringing any late payments current as soon as possible and disputing any errors on your credit reports. Pay your bills on time—not just credit card and loan payments, but also your rent, utilities and phone bills. Don't apply for new credit accounts or close unused credit accounts; either of these actions can negatively affect your credit score. Finally, work to pay down credit card debt and other revolving credit; aim to use no more than 30% of your total available credit. Get the details on how to improve your personal credit score.\n*   **Build your business credit**: After you've made sure your business credit report is accurate and brought any late payments current, work on building your business credit by getting credit and using it responsibly. Make sure any business credit cards you use report your payment history to at least one of the three major business credit reporting agencies (Experian, TransUnion and Equifax). See if you can get trade credit with suppliers, and ask them to report to the credit reporting agencies. Even a very low trade credit limit can help: By paying your bills on time, you'll help to improve your credit score and encourage suppliers to extend more credit.\n*   **Reassess your business plan**: Review your business plan to see if there are ways you can cut costs or increase revenues. Either tactic can help reduce the amount of financing you need. You can also ask lenders who turned you down to give you feedback on your business plan. Use what you learn to revise the plan and make it more appealing to lenders in the future. END
 TITLE: How to Get a Small Business Loan With Bad Credit CONTENT: A Loan at Last\n--------------\nTo find out if getting a business loan is a viable possibility for you, get a free copy of your credit report. If your personal credit score is 500 or more, you have more options for business financing than you may have thought. Getting a business loan with bad credit isn't easy, but if you do your homework to find the right loan product, it can be done. END
 TITLE: Here’s What It Takes to Get a Small Business Loan CONTENT: Check Your Personal and Business Credit\n---------------------------------------\nBefore you start looking for a business loan, it's smart to know where your credit stands since this is one of the key factors lenders look at when evaluating your loan application. You can dispute any errors and see if there's anything you can improve before you apply.\nWhen you apply for a personal loan or credit card, lenders just look at your personal credit report. But when you're applying for a small business loan, lenders also review your business credit report. Yes, you have a business credit report. It helps lenders get a sense of your enterprise's creditworthiness and financial history, including any past collections, liens, judgments or bankruptcies. It also includes background information about the business and any Uniform Commercial Code (UCC) filings. END
 TITLE: Here’s What It Takes to Get a Small Business Loan CONTENT: Research Different Types of Small Business Loans\n------------------------------------------------\nThere's not just one type of small business loan—you have several different options to choose from. Here are a few:\n*   **SBA loans**: These loans are backed by the U.S. Small Business Administration, but offered through private lenders. There are a few types of SBA loans, with the most common being term loans. The government sets interest rate caps on these loans, so they usually have lower interest rates than non-SBA loans. However, they can be hard to qualify for, and the application process is long and intense.\n*   **Term loans**: If you can't qualify for an SBA loan, you can apply for a regular business term loan. Some banks and credit unions offer them, as do an increasing number of online lenders that make the process even faster and easier. Like SBA term loans, you get a lump sum upfront and repay it in fixed installments over time, making it ideal if you have large expenses that require upfront payment.\n*   **Line of credit**: Rather than a lump sum you receive with a term loan, a line of credit is revolving, much like a credit card. You receive a credit line you can repeatedly draw from for business expenses, and as you repay it, you can re-borrow the funds. You only borrow and pay interest on what you need. A line of credit is more ideal than a loan if you have smaller recurring expenses or just need a cash cushion.\n*   **Other options**: If you're struggling to get one of the small business loans mentioned above, there are some other financing options to explore, including personal loans, business credit cards, invoice factoring, merchant cash advance, inventory loans and equipment loans. END
 TITLE: Here’s What It Takes to Get a Small Business Loan CONTENT: See if You Qualify\n------------------\nNot sure if you're eligible for a small business loan? To qualify, you have to meet certain criteria, though it varies quite a bit depending on which type of loan you're applying for. For example, SBA loans require the business to be for-profit and of a certain size. In addition, as the business owner, you must have invested equity and exhausted other financing options.\nSome lenders will require you to put up collateral, such as real estate or equipment, especially if you're a newer business or otherwise deemed risky. This means if you default on the loan, the lender can take ownership of those items. That makes it even more important to only take out a loan that you can afford to repay.\nWhile business loan requirements vary, lenders typically look at:\n*   **Your credit score**: The minimum credit score allowed varies significantly depending on the lender. For example, SBA loans typically require a minimum personal credit score of 620 to 640, but some SBA lenders require higher scores. Keep in mind that the better your credit, the lower interest rate you can qualify for. On the flip side, worse credit can land you a higher annual percentage rate (APR).\n*   **Your business income**: It's common for small business lenders to require your business to have a certain amount of income or cash flow. This is to help confirm that you'll be able to repay the loan. If your business isn't very profitable or income is inconsistent, it will be harder to get a small business loan.\n*   **Your time in business**: Some lenders may not have a minimum requirement for how long your business has been around. But others won't entertain your application if you're not an established business. For example, SmartBiz, an online SBA loan lender, requires two or more years of business history. END
 TITLE: Here’s What It Takes to Get a Small Business Loan CONTENT: Gather Required Documents\n-------------------------\nSmall business loans are usually for much larger amounts than personal loans, so in the application process, lenders typically require significant amounts of documentation. This helps them decide whether you and your business have the stability and income to repay the loan on time.\nTo expedite the loan process, it's smart to ask your lender what documents you'll need and gather the required paperwork in advance. The documents you'll have to provide will likely include:\n*   Business bank statements\n*   Personal and business tax returns\n*   Business financial statements\n*   Information on any business debts\n*   In some cases, a business plan END
 TITLE: Here’s What It Takes to Get a Small Business Loan CONTENT: Know Before You Go\n------------------\nApplying for a small business loan can be time-consuming, so before you go to a lender and start the process, check your personal credit report, which you can get for free from Experian, in addition to your business credit to know where you stand. If it doesn't appear up to snuff, spend some time improving your credit before applying for a small business loan, or start looking into alternative financing options. END
 TITLE: How to Get a Home Loan With Bad Credit CONTENT: Check Your Credit Reports and Scores\n------------------------------------\nChecking your credit reports and scores early in your house hunt can give you a sense of which home loans are realistic options.\nWhat qualifies as a good or bad credit score can vary depending on the lender and the type of credit score (there are many different credit scores). However, most mortgage lenders will review your credit reports from Experian, TransUnion and Equifax, as well as FICO® Scores☉ based on each report. They typically use the middle score to help determine whether you get approved and to set your interest rate and repayment terms.\nFICO® Scores range from 300 to 850, which are then divided into five score ranges:\n*   **Very Poor:** 300 - 579\n*   **Fair:** 580 - 669\n*   **Good:** 670 - 739\n*   **Very Good:** 740 - 799\n*   **Exceptional:** 800 - 850\nThe higher your score, the more options you'll have for credit, including home loans.\nIf your middle score is below 500, you might not be able to get approved for a home loan and may have to focus on building your credit first.\nWith a middle score of at least 500, a government-backed FHA loan could be an option if you can afford a 10% down payment. There are also government-backed mortgages with middle-score requirements of 580, 620 or 640 and lower down payments.\nOnce your credit score is in the mid-600s, you may start qualifying for non-government conventional mortgages directly from mortgage lenders. END
 TITLE: How to Get a Home Loan With Bad Credit CONTENT: Unfortunately, getting approved and getting a good interest rate aren't the same thing.\nThe low mortgage rates that you see advertised are generally reserved for borrowers who have very good or exceptional credit scores. Having a low score often means you're stuck with a much higher rate.\nBecause mortgages are often very large loans that take decades to repay, even a 1% or 2% increase could lead to paying tens of thousands more in interest over the lifetime of your loan. So no matter what your credit scores, you'll want to compare your loan options to get as low a rate as possible. The Consumer Financial Protection Bureau (CFPB) has a mortgage interest rate tool you can use to compare rates based on your state, credit score range and loan details. Government-backed mortgages, such as FHA and VA loans, are often a good starting point if you have poor credit. END
 TITLE: How to Get a Home Loan With Bad Credit CONTENT: FHA Home Loans\n--------------\nThe Federal Housing Administration (FHA), part of the U.S. Department of Housing and Urban Development (HUD), has a home loan program that can help consumers with poor credit. Under the program, the FHA won't actually lend you the money. Instead, it insures home loans, meaning the FHA will repay the lender if a borrower defaults on a mortgage. The lenders can therefore be more lenient about credit and income requirements.\nLenders need to follow the FHA's guidelines and requirements, though. To qualify for an FHA loan, you'll need:\n*   Proof of employment.\n*   A middle credit score of 580 with a 3.5% down payment, or 500 with a 10% down payment.\n*   Generally, your monthly debt payments can't be more than 43% of your monthly gross income (income before taxes), or 31% after including your mortgage and other home-related expenses, such as property taxes.\nThere are other requirements as well. For example, FHA loans have a maximum loan amount, which varies depending on where you're buying a home.\nIn general, FHA loans might be more expensive than conventional loans for buyers with good credit or who can afford at least a 10% down payment. However, the FHA route could be the better option if you have poor credit or can only afford a small down payment. END
 TITLE: How to Get a Home Loan With Bad Credit CONTENT: VA Loans\n--------\nIf you're a service member, veteran or surviving spouse and meet the eligibility requirements, you may qualify for the U.S. Department of Veteran Affairs (VA) home loan program.\nThe VA backs loans, which is similar to the FHA program in that the VA insures the loan, but a VA-approved lender issues the loan. There are also VA direct loans, where the VA is the lender, available if either you or your spouse is Native American.\nTechnically, there's no credit score requirement for VA-backed loans. However, many VA-approved lenders require a minimum credit score of around 620. This requirement is still below the common conventional loan requirement of 660, but it's above the cutoff for some FHA loans.\nThere are important differences to consider if you're eligible for both an FHA and a VA loan. For instance, VA loans might not require a down payment or monthly mortgage insurance, but they could have a higher upfront fee. If you think you'll be moving again soon, it might make more sense to go with whichever loan has the lower upfront fee.\nOf course, you'll also want to compare the interest rates and monthly payments on the loans to see which option best fits your budget. END
 TITLE: How to Get a Home Loan With Bad Credit CONTENT: Savings for First-Time Home Buyers With Bad Credit\n--------------------------------------------------\nIf you have poor credit and are a first-time home buyer, you might also qualify for assistance programs. And don't let the title throw you off: The definition of \"first time\" varies. Even if you've bought a home before, you may still qualify as long as it's been several years since you last owned a home.\nLocal and state governments, along with nonprofit organizations, often run these assistance programs. The requirements can vary, but may include buying a home in a specific area, having a low or medium income, or working as a public service employee, such as a teacher or law enforcement officer.\nThe benefits also vary among first-time homebuyer programs. The programs might:\n*   Help you get a lower interest rate on your mortgage.\n*   Cover part of your down payment or closing costs.\n*   Offer you a no-interest loan to pay for your down payment or closing costs.\nTo find first-time buyer programs in your area:\n*   Look on your state's Housing Finance department website. Here's a directory of the states' websites.\n*   Go to the HUD page for your state and review the local resources and homeownership counseling options.\n*   Search the Down Payment Resource directory.\n*   Search \"first-time homebuyer programs\" online. Include the name of your state or county for more localized results. END
 TITLE: How to Get a Home Loan With Bad Credit CONTENT: Mortgage Lenders Consider More Than Credit Scores\n-------------------------------------------------\nWhile your credit can be an important factor in determining whether you can get approved for a mortgage, it's not the only factor. In some cases, you may be able to make up for having low credit scores if you have an otherwise good financial situation.\nHere are some examples:\n*   **A large down payment** could make it easier to qualify for a home loan and help you get a lower interest rate.\n*   Your **debt-to-income (DTI) ratio** can be an important factor. A lower DTI is better when you're applying for a home loan.\n*   Adding a **creditworthy cosigner** to your application can also help. However, the cosigner will be legally responsible for the mortgage payments, and the mortgage could impact their creditworthiness and increase their DTI ratio.\n*   Having **few or no debts** could ease lenders' concern about your ability to manage bills.\n*   If your **mortgage payments are similar to your rent payments,** lenders may appreciate that your monthly payments will stay steady.\n*   A **large savings balance** could show lenders that you'll be able to afford your mortgage payments even if you're faced with unexpected bills or lose your job.\n*   A **long work history** with your current employer, or in your field, may demonstrate that you'll be able to move up in your industry or quickly find another job.\nRemember, credit scores attempt to predict the likelihood that someone won't be able to repay a debt on time in the future. So, whether it's your cash savings or employment record, showing your financial stability and ability to cover future bills could help your application. END
 TITLE: How to Get a Home Loan With Bad Credit CONTENT: How to Improve Your Credit Scores Before Buying a Home\n------------------------------------------------------\nEven if you really want to buy a home right away, it might make more sense to work on your credit first. Particularly if you're already struggling with bills, taking on a new, large financial commitment could stretch you beyond your means.\nThere are many ways to improve your credit scores. Here are a few tips :\n*   **Continue making on-time payments.** Making credit card and loan payments on time is one of the best ways to improve your scores. Even if you can only afford minimum payments, that's better than missing a payment altogether.\n*   **Pay down revolving debt.** Your credit utilization rate is the percentage of your available revolving credit that you're using, and it's an important factor in determining your credit scores. Paying down your revolving debt, such as credit cards and lines of credit, can help lower your utilization rate and increase your scores.\n*   **Keep your credit cards open.** You could cut up a credit card or lock it away somewhere if you don't want to be tempted to use it. However, closing a credit card account will lower how much available credit you have and could increase your utilization rate.\n*   **Build your credit file.** If you have fewer than five open accounts or no recent activity on on your credit report, you may have a \"thin file,\" which can make getting approved for new credit accounts difficult. You may want to use your credit card accounts to add recent activity to your credit reports. Or, if you don't have any accounts, trying opening a secured credit card, use it to make a small purchase each month, and pay your bill in full by the due date to build a positive credit history.\n*   **Time your applications.** Applying for new loans or credit cards can also lead to a hard inquiry, which can hurt your scores. Hard inquiries stay on your credit report for two years, but generally, their impact on your scores only lasts a year or less. It may be best not to apply for any new accounts once you're several months away from applying for home loans.\n*   **Think twice before filing a dispute right before applying for a home loan.** An error on your credit report, such as a late payment that you're certain you paid on time, could be hurting your scores. Disputing the error and having it removed or corrected could improve your scores. However, the process could take 30 to 45 days, and you might have trouble getting approved for a mortgage while there's a pending dispute on your credit report. If possible, check your report for problems several months before you plan to apply for a home loan.\nIf you have bad credit but aren't at the very bottom of the score range, you may still be able to qualify for a home loan, but you likely won't get a great rate. Consider your mortgage options and look for loan assistance programs to help you get as good of a deal as possible. However, if you're able to put off the purchase while you work to improve your credit scores, that could save you a significant amount of money over time. END
 TITLE: How Does Identity Theft Happen? CONTENT: Lost or Stolen Wallet or Purse\n------------------------------\nPeople carry a lot of sensitive information in their wallet or purse. In addition to your credit and debit cards, you may also carry your driver's license or state ID, Social Security card, passwords and other important documents.\nTo limit the amount of information an identity thief rakes in with a lost or stolen wallet or purse, carry only what's necessary. For instance, commit your Social Security number and passwords to memory and keep the papers at home in a safe place. Alternatively, you can use an online password manager like LastPass and 1Password.\nAlso, keep only the credit and debit cards in your wallet or purse that you use regularly. The others you can leave at home safely stored until you need them. END
 TITLE: How Does Identity Theft Happen? CONTENT: Lost or Unsecured Digital Device\n--------------------------------\nYour computer, phone or tablet is your gateway to the web, and you can do just about anything online. Most people have access to their online banking, credit card accounts and other financial information. So if you lose your device or a fraudster hacks it via malware, you could provide them with a wealth of information.\nStart by setting a password to access your device that only you know. That way, someone who finds or steals your device won't be able to access your files.\nSecond, install malware protection software on your computer; most options are affordable. Also, avoid visiting unknown and obscure websites, and don't open an attachment or click a link on an email that sounds suspicious. It's highly unlikely that you'll get a virus or other malware by visiting trustworthy sites, so stick with what you know. END
 TITLE: How Does Identity Theft Happen? CONTENT: Burglary\n--------\nKeeping your sensitive information stored at home is always better than carrying it around with you. But if someone burglarizes your home, you could still be in danger of having your identity stolen.\nOne way to keep your information safe is to store it in a lock box or safe, with the key stored in a separate safe place.\nAnother way to avoid the threat altogether is to store your most sensitive information in a safe deposit box at your local bank branch. END
 TITLE: How Does Identity Theft Happen? CONTENT: Mail Theft\n----------\nWhile many identity thieves have moved on to more sophisticated methods of accessing your information, some are content to stick with old school mail theft. If you get bank and credit card statements or send checks through the mail, you could be vulnerable.\nTo limit your exposure to mail theft, opt for e-statements with your bank and credit card companies. You'll get notifications in your email when they're ready and can view them in your online accounts. Also, if you have to send a check or letter with sensitive information, take it to your local post office or hand it directly to the mail carrier.\nFinally, consider getting a mailbox with a lock. With several other mailboxes in the area, a thief will likely move on to the next one rather than trying to break into yours. END
 TITLE: How Does Identity Theft Happen? CONTENT: Trash Theft\n-----------\nOnce you throw something in the trash, it's out of sight and out of mind. But to identity thieves, trash containers and dumpsters can be a gold mine.\nTo avoid giving fraudsters access to your personal information through the trash, use a shredder for statements and other sensitive documents. Specifically, pick a cross-cut or micro-cut one to make your documents practically unreadable. END
 TITLE: How Does Identity Theft Happen? CONTENT: Email and Text Messages\n-----------------------\nPhishing scams aren't new, but they're getting harder and harder to spot. These scams come in the form of an email or text and attempt to get you to share personal information.\nThese messages often:\n*   Don't address you by name\n*   Require immediate action\n*   Threaten you with a frozen account or other negative consequence\n*   Have a suspicious sender address\n*   Include spelling and grammar errors\n*   Include attachments\n*   Request information the institution they're posing as already has\n*   Share vague information; for example, \"your Visa card\" instead of \"your Chase Sapphire Preferred® Card\"\nEmail platforms such as Gmail try to send these messages to your spam folder automatically. But some can still slip through the cracks. Keep an eye out for these red flags every time you receive an email. And if you're not sure about something, call the institution directly to confirm that it's not a scam. END
 TITLE: How Does Identity Theft Happen? CONTENT: An Unsecured Home Network\n-------------------------\nYour home Wi-Fi network may be a target if it's open or has a simple password. If it's unsecured or not secured well enough, anyone within 500 feet can join the network and access your sensitive information.\nTo prevent this type of identity theft, start by securing your network with WEP or WPA security. Doing this will make it harder for fraudsters to access your private files.\nAlso, set a complex password and change it every six to 12 months. Doing this can make it harder for a thief to guess your password based on what they might know about you. END
 TITLE: How Does Identity Theft Happen? CONTENT: Unsecured Websites\n------------------\nIf you regularly shop online, it's important to be diligent about where you spend your money. There are plenty of websites that offer deals on various items, but don't let that make you complacent.\nSome websites aren't secure, which means that anyone can eavesdrop as you enter your payment and other personal information.\nThe best way to avoid unsecure websites is to stick with sites that you know. Also, check the URL at the top of your browser to make sure it starts with \"https.\" If it starts with \"http\" instead, the site isn't secure, and you should avoid entering your personal information.\nThat said, even secure websites can be a front for fraudsters. So if you're not familiar with a site, check the URL to make sure there aren't any misspellings and do a quick internet search to see if it's legitimate. END
 TITLE: How Does Identity Theft Happen? CONTENT: Compromised Card Readers\n------------------------\nWhether you're at the fuel pump or withdrawing cash from an ATM, your credit or debit card could be at risk. Identity thieves place a device over the card reader called a skimmer or shimmer that can read your credit or debit card information, either from the magnetic strip on the back of your card or the chip on the front.\nWith this information, they can create a fake credit or debit card and use it in situations where the merchant won't ask for a CVV code, expiration date or PIN.\nTo avoid these illegal card readers, check the gas pump or ATM terminal to see if anything looks off. The skimmer or shimmer will likely be made of a different material or be a different color, making it easy to spot. Also, the owner of the machine may add a tamper-free seal that you can check.\nIf you're not sure, go inside the gas station to pay or get your cash at the teller counter of your local bank branch. END
 TITLE: How Does Identity Theft Happen? CONTENT: Data Breaches\n-------------\nYou likely have countless online accounts with different banks, merchants and other companies. And while those companies do their best to protect your data, hackers sometimes still manage to get access to customer information in what's called a data breach.\nSince the companies are the target, you may feel like there's not much you can do. But one thing you can do is to be selective about what information you share. Avoid opening an online account unless it's necessary, and only do business with companies that value security and clearly spell out their security practices on their website. END
 TITLE: How Does Identity Theft Happen? CONTENT: Synthetic Theft\n---------------\nSynthetic identity theft is the act of merging real and fake personal information to create a new identity. For example, a fraudster could use your Social Security number and blend it with a different person's name and address.\nIn addition to the other preventive measures we've discussed, one way to prevent synthetic identity theft is by using a service that offers dark web monitoring. Services like Experian IdentityWorksSM regularly check the dark web for your Social Security number, phone number and email address to make sure they're not being misused. END
 TITLE: How Does Identity Theft Happen? CONTENT: What to Do if Your Information Has Been Compromised\n---------------------------------------------------\nThere's no surefire way to prevent identity theft entirely. So when it happens, it's important to know what to do to stop it before it gets worse.\nIf your credit or debit card has been lost or stolen, the first thing you should do is contact the issuer and report it. It will cancel the card and send you a new one in a few days.\nIf you think your Social Security number has been compromised, consider adding an initial fraud alert to your credit reports to prevent the thief from opening an account in your name.\nIf someone has already opened an account in your name, contact the creditor and file a police report, then request an extended fraud alert or credit freeze.\nThe sooner you react to potential or legitimate fraud, the easier it will be to clean up the mess. If you don't check your credit scores and online statements regularly, though, you could be a victim for months before you realize what's happening. The more attentive and intentional you are about protecting your information, the easier it will be to prevent fraud and address it quickly when it happens. END
 TITLE: RISE Personal Loans: A Cheaper Alternative to Payday Loans CONTENT: High APR With Rate Reduction Opportunity\n----------------------------------------\nRISE personal loans have very high APRs, ranging from 36% to 299%, depending on your credit and where you live. So if you have fair credit or better, you may be able to get much more affordable financing elsewhere.\nEven if you have bad credit, you may be able to score a lower interest rate with another lender. That said, if your credit is bad enough that your only other alternatives are payday loans and auto title loans, a RISE personal loan is much cheaper, can give you access to more cash and provides longer repayment terms.\nAlso, unlike most lenders, RISE may offer the chance for a reduced interest rate if you make on-time payments on your loan. END
 TITLE: RISE Personal Loans: A Cheaper Alternative to Payday Loans CONTENT: Who Is Eligible for a RISE Personal Loan?\n-----------------------------------------\nRISE personal loans are generally targeted toward consumers with poor credit scores. The lender doesn't list a minimum credit score, but that doesn't mean you're guaranteed to get approved. RISE will review your credit history, income and other information listed on your application to make a decision.\nIf you're not sure whether you'd qualify based on your credit history, you can get prequalified during the application process and view different offers based on your creditworthiness.\nRISE personal loans are not available to members of the military who are covered under the Military Lending Act.\nAlso, the lender does not allow cosigners, so if you can't get approved on your own, you'll need to look elsewhere, even if you have someone who is willing to apply with you. END
 TITLE: RISE Personal Loans: A Cheaper Alternative to Payday Loans CONTENT: How to Apply for a RISE Personal Loan\n-------------------------------------\nThe RISE personal loan application process is entirely online. To qualify, you need to meet a few requirements, including:\n*   Be at least 18 years old (or 19 if you live in Alabama or Nebraska)\n*   Live in one of the 31 states where the lender operates\n*   Have a job or other regular source of income\n*   Have an active and valid checking account\n*   Have an email address where you can receive account information\nTo start the application process, you'll provide information about yourself, including your name, address, date of birth, Social Security number and contact information.\nRISE will run a soft inquiry on your credit report to show your loan options. If the lender checks your credit report during this process with its partner Teletrack (a specialized consumer reporting agency), it will be a hard inquiry that only shows on your Teletrack report. The inquiry won't show up on your credit report with the three major credit bureaus.\nThen, if you proceed to apply for one, the lender will run the type of hard inquiry that can impact your credit score. The lender may ask for certain documents to verify information on your application, such as pay stubs, bank statements or tax forms.\nYour APR will be determined based on various factors, including your income, credit history, information on your application and the loan amounts and terms offered in your state of residence. END
 TITLE: RISE Personal Loans: A Cheaper Alternative to Payday Loans CONTENT: Low Fees and Flexible Payment Scheduling\n----------------------------------------\nRISE doesn't charge application, origination or prepayment fees. You may, however, be charged a late fee if you miss a payment. If you think you may have trouble making a payment, contact RISE and you may be able to get an extension.\nYou can make loan payments through ACH transfers from your checking account or with a debit card or paper check.\nAfter you're approved and sign your loan agreement, you'll have five days to decide whether to keep the funds. If your financial situation changes or you simply decide you no longer need the money, you can return it and pay no interest or fees. END
 TITLE: How to Get a Loan During a Recession CONTENT: Does a Recession Affect Your Ability to Get a Loan?\n---------------------------------------------------\nMany lending impacts in a recession are indirect. Unemployment may rise, increasing the likelihood that you won't be able to pay your debts. Home values may drop as well, reducing the amount of equity you have in your home and limiting your ability to sell profitably. Even if you manage to avoid losing your job or being \"underwater\"—owing more than your home is worth—on your mortgage, the level of risk that any borrower represents is higher during a recession. Just as a rising tide lifts all boats, a recession makes everyone—borrowers and lenders alike—a little more vulnerable.\nAs a result, lenders are likely to take a harder look at your credit scores and reports when the economy is tight. When you're looking to get credit during an economic downturn, be prepared for lenders to scrutinize the following information:\n*   **Income**: As always, the more regular your income is, the better. If you've recently lost your job or been furloughed, the disruption to your income may be a red flag.\n*   **Credit score and report**: Your credit history shows lenders how you manage credit and debt. Do you make payments on time? Have you ever defaulted on a loan or declared bankruptcy? Also, it provides a snapshot of how much you currently owe, which will help lenders determine how much additional debt you might be able to shoulder.\n*   **Debt-to-income ratio**: Lenders consider how likely you might be to repay a loan by looking at how much of your income you use to make your monthly debt payments. For instance, if your current mortgage payment accounts for 50% of your income, refinancing to a larger loan might be impossible.\n*   **Assets**: In a financial emergency, would you have the funds to continue making loan payments? Savings are key.\n*   **Down payment**: \"No money down\" home and auto loans might be harder to come by—or harder to qualify for—in a recession. On the other hand, if you can put a larger down payment on a new loan, you might improve your chances of approval.\nDuring a recession, lenders are likely to set the bar a little higher for these parameters. For example, they may require a higher FICO® Score☉ for you to qualify for the best rates or a lower debt-to-income ratio when setting a loan amount. They may also simply approve fewer loans if the economic environment seems risky. END
 TITLE: How to Get a Loan During a Recession CONTENT: How to Improve Your Chances of Qualifying for a Loan During a Recession\n-----------------------------------------------------------------------\nThe best way to increase your chances of qualifying for a loan is to decrease the level of risk you represent. To do this, take a moment to understand your current financial status.\nStart by checking your credit score and report. You can download a free copy of your credit report from all three credit bureaus (Experian, Transunion and Equifax) at AnnualCreditReport.com. Normally, you can do this once a year, but through April 2021, you can access your credit reports weekly for free. Knowing your credit score will help you shop, since different lenders may set different criteria for the best rates and approval. A FICO® Score of 730, for instance, may be considered \"good\" with one lender and \"very good\" with another.\nIf a family member or close friend is in a position to help, consider adding a cosigner to your loan application if allowed. A cosigner agrees to accept responsibility for repaying your loan in the event that you cannot. A cosigner with a high (or steady) income, substantial assets and\/or a high credit score can boost your ability to qualify for a loan or to get better rates and terms. However, be aware that cosigning is a risk for your friend or family member. Before asking them to cosign, be sure that you'll be able to pay back the loan without defaulting or damaging their credit.\nThere are many ways to improve your credit score. Here are some tips to get started:\n*   Reduce your credit card utilization (your balance relative to your credit limit) to 30% or less on all of your credit cards.\n*   Catch up on past-due payments and make all payments on time going forward.\n*   Get added as an authorized user on a family member's established credit card.\n*   Dispute any errors on your credit report.\n*   Factor on-time utility and phone payments into your credit score using Experian Boost™† . END
 TITLE: How to Get a Loan During a Recession CONTENT: Factors to Consider When Comparing Loans\n----------------------------------------\nHow do you get the best deal when you're shopping for a loan? Different interest rates, loan terms and loan amounts can make comparisons confusing.\nUse a simple loan calculator to figure out approximately how much a loan will cost you. You'll need to know the amount you're borrowing, interest rate and loan term to make this calculation. A loan calculator can tell you roughly what your monthly payment will be and how much you'll pay in interest over the course of the loan. Plug in different numbers to get a range of scenarios or compare the costs on multiple loans.\nAdditionally, take into consideration any down payments, fees and upfront points you'll need to pay in order to get the loan: Some may cost you quite a bit. Find out how long it will take for your loan to fund if time is a factor.\nOne caveat for borrowing during a recession: Try to avoid adjustable-rate loans. Interest rates traditionally drop during a recession, as the Federal Reserve may take steps to keep interest rates low to stimulate the economy. If you choose an adjustable-rate loan when rates are at their lowest, you'll see a rise in your rate and monthly payments when the economy improves and interest rates go up. END
 TITLE: How to Get a Loan During a Recession CONTENT: Loan Alternatives for When You Need Money in a Recession\n--------------------------------------------------------\nIf conventional loans aren't a good option for you, you might consider alternative sources of money. Lenders that cater to borrowers with poor credit—such as payday lenders and auto title lenders—charge high interest that makes it difficult to pay off your loans. Try to avoid these types of loans if at all possible.\nHere are three alternatives to a traditional installment loan:\n*   **Get an introductory 0% APR credit card.** If you have good to excellent credit, you may qualify for a credit card that offers an introductory rate of 0% for a limited time.\n*   **Borrow from friends or family.** Asking for money or a loan from friends or family is serious and should never be done lightly. Still, if you have friends or family with ready resources and you're confident that you can repay them, take the time to iron out an interest rate and repayment terms (and put it on paper) in advance to avoid any conflict or misunderstanding.\n*   **Look for nonprofit programs that might help.** Borrowers in need may want to look into lending circles such as Mission Asset Fund, a nonprofit organization that helps people establish peer-to-peer lending groups. Lending circles don't rely on traditional lending criteria and do report to credit agencies. END
 TITLE: How to Choose the Best Student Loan Repayment Plan for You CONTENT: If you have federal loans, you may have up to seven different repayment plans from which you can choose. Depending on the plan you choose, your payments may remain the same throughout the life of your loans, or they may change over time.\nHere's what you need to know about each plan.\n### Standard Repayment Plan\nThis is the plan you typically start out on when you first get federal loans. Your payments remain fixed for the life of your loan, which is typically 10 years but can be as much as 30 years if you consolidate your loans.\nAll federal student loan borrowers can choose this plan.\n### Graduated Repayment Plan\nWith this plan, you can keep the 10-year repayment term but start off with lower payments and have them increase—usually every two years—over time. If you consolidate your loans, you can extend the term to up to 30 years.\nAll federal student loan borrowers can opt for graduated repayment.\n### Extended Repayment Plan\nExtended repayment allows you to lengthen your repayment term to up to 25 years. Depending on which option you choose, you can have fixed or graduated payments during that time.\nTo qualify for this plan, you need to have at least $30,000 in federal student loan debt.\n### Revised Pay As You Earn Repayment Plan (REPAYE)\nThe REPAYE plan is the first of four income-driven repayment plans. Your monthly payment will be 10% of your discretionary income, which is calculated as the difference between your annual household income and 150% of the poverty guideline for your family's size and state of residence.\nYour payments will be recalculated every year as your income and family size changes. Your repayment term will also increase to 20 or 25 years, depending on the type of loans you have, and any amount that's left over at the end of the term will be forgiven. Note, however, that any amount that's forgiven under an income-driven repayment plan may be considered taxable income.\nMost federal loan borrowers can qualify for the REPAYE plan. However, parents who take out PLUS loans are not eligible.\n### Pay As You Earn Repayment Plan (PAYE)\nSimilar to the REPAYE plan, the PAYE plan sets your monthly payment at 10% of your discretionary income. The biggest difference is that while your payment can increase as your income increases, it will never be set higher than what you would have paid on a 10-year standard repayment plan. Your payments are recalculated each year.\nAlso, to qualify for this plan, you need to show financial need, specifically that you have a high debt burden relative to your income. Your repayment period will be extended to 20 years, and anything that's not paid off by that time will be forgiven.\nParents with PLUS loans are not eligible for the PAYE plan.\n### Income-Based Repayment Plan (IBR)\nWith this plan, your monthly payment will be set at either 10% or 15% of your discretionary income, depending on when you received your first loans. As with the PAYE plan, your monthly payments will never be higher than what they'd be on a 10-year standard repayment plan.\nPayments are recalculated each year, and your repayment term will be extended to 20 or 25 years, again depending on when you first got your loans. After that time, the remainder will be forgiven.\nTo qualify for an IBR plan, you'll need to prove that you have high debt relative to your income. As with the other income-driven repayment plans so far, parent PLUS loans are ineligible.\n### Income-Contingent Repayment Plan (ICR)\nThe ICR plan is available to all federal loan borrowers, including parents with PLUS loans. You don't need to prove financial need, and your monthly payment will be the lesser of:\n*   20% of your discretionary income, which is calculated as the difference between your income and 100% of the poverty guideline.\n*   The amount you would pay on a repayment plan with a fixed payment over 12 years, adjusted according to your income.\nPayments are recalculated each year, and any amount that's left over after 25 years will be forgiven. END
 TITLE: How to Choose the Best Student Loan Repayment Plan for You CONTENT: Finding the Best Repayment Plan for You\n---------------------------------------\nWith up to seven plans to choose from, picking the right one could be tough. To narrow down the selection, take a moment to think about your goal. Here are a few you might consider.\n### Lowering Monthly Payments\nAll the income-driven repayment plans and a graduated repayment plan will typically lower your monthly payment. Keep in mind, though, that with a graduated repayment plan, your payment will certainly increase over time, regardless of your income.\nOn the flip side, an income-driven repayment plan will keep your payment at an affordable level based on your income.\n### Paying Lower Interest\nUnfortunately, the U.S. Department of Education doesn't offer opportunities to get a lower interest rate on your federal loans. Even if you consolidate multiple federal loans with a federal servicer, your interest rate will be the weighted average of the loans you're consolidating, rounded up to the nearest one-eighth of 1 percent.\n### Qualifying for Loan Forgiveness\nIf you're planning to apply for the Public Service Loan Forgiveness program (PSLF) or a similar program, it may make sense to go with the repayment plan that requires you to pay less money overall.\nWith PSLF, for instance, you need to make 120 qualifying payments in addition to meeting other requirements. If you have a 10-year standard repayment plan, there won't be anything left over to forgive once you make your qualifying payments.\nAn income-driven repayment plan is typically best if you're planning to pursue loan forgiveness. END
 TITLE: How to Choose the Best Student Loan Repayment Plan for You CONTENT: Consolidating or Refinancing Your Federal Student Loans\n-------------------------------------------------------\nAs previously mentioned, consolidating your federal student loans and keeping them with a federal servicer can simplify your monthly payments. However, it will end up costing you more in the form of a higher interest rate.\nAlternatively, you can refinance your federal loans with a private lender. If you have a strong credit history and income profile, you may be able to qualify for a lower interest rate than what you're currently paying.\nThat said, refinancing with a private lender means that you lose federal benefits, including access to income-driven repayment plans and loan forgiveness programs. So it might not be a great option if you want to hold on to those protections. But if you're not worried about needing them, refinancing could save you money in the long run.\nIf you're planning to go this route, be sure to check your credit scores beforehand to make sure you're in a good position to qualify. END
 TITLE: 3 Ways to Get Help With Student Loans CONTENT: 1\\. Consider Switching Repayment Plans\n--------------------------------------\nYour first step, if you have federal student loans that will be unaffordable for the foreseeable future, is to check out income-driven repayment plans. Some have income requirements you must meet, so get in touch with your student loan servicer—the company that collects your payments—to find out which option is best for you.\nIncome-driven repayment lowers monthly student loan bills to a fraction of your discretionary income, as the government defines it. You'll generally pay between 10% and 20% of your earnings, depending on the plan, and your balance will be forgiven after 20 or 25 years.\nKeep in mind that the forgiven balance will be taxed, and you'll likely pay more in interest. You must also recertify your income each year to stay eligible. Here's how each plan breaks down:\n*   Income-Based Repayment: Under this plan, those who first took out loans before July 1, 2014, will pay 15% of their discretionary incomes per month and get forgiveness after 25 years. Borrowers who took out loans for the first time since that date pay 10% of their discretionary incomes and get forgiveness after 20 years. Your bill will never be more than what you'd pay on the government's 10-year standard repayment plan. This is the only plan that you can use to repay certain student loans from the Federal Family Education Loan program, known as FFEL loans, without consolidating them first.\n*   Pay As You Earn: This plan lowers bills to 10% of discretionary income and offers forgiveness after 20 years. It's likely your best option if you meet the requirements: You must have taken out direct loans or FFEL program loans for the first time after October 1, 2007, and received a disbursement of a direct loan any time after October 1, 2011.\n*   Revised Pay As You Earn: While you must show that you can't afford the standard 10-year plan to qualify for Income-Based Repayment and Pay As You Earn, Revised Pay As You Earn is available to all federal loan borrowers. You'll pay 10% of your discretionary income. Additionally, you'll get forgiveness after 20 years if your loan was used for undergraduate studies, and 25 years for grad school loans.\n*   Income-Contingent Repayment: This is the only income-driven plan available to parents who took out federal PLUS loans and are struggling with repayment. You'll pay either 20% of discretionary income per month or the equivalent of a monthly payment on a 12-year repayment plan. Forgiveness occurs after 25 years. END
 TITLE: 3 Ways to Get Help With Student Loans CONTENT: 2\\. Apply for Student Loan Forgiveness\n--------------------------------------\nFederal student loans come with additional forgiveness programs for borrowers in certain public service occupations. Closely follow each program's requirements to get forgiveness; your student loan servicer should be able to guide you.\n*   **Public Service Loan Forgiveness**: You may qualify for this program, known as PSLF, if you work 30 or more hours per week for a government agency or 501(c)3 nonprofit, you have federal direct loans, and you're on an income-driven plan. You can consolidate other types of loans to make them eligible for the program, but only payments made after consolidation count. Forgiveness on the balance happens after you've made 120 monthly payments, and it won't be taxed as income. The program has so many requirements that it can be hard to know if you're on track; use the government's [PSLF Help Tool](;_ga=2.110728449.527797636.1553014287-1917240108.1549760842#!\/pslf\/launch) to check.\n*   Teacher Loan Forgiveness: While public school teachers generally qualify for PSLF, there's another program that gives certain teachers access to forgiveness sooner. Teacher Loan Forgiveness is available to teachers in low-income schools and forgives up to $17,500 in federal direct or FFEL loans over five years. Teachers can use both Teacher Loan Forgiveness and PSLF back to back if they're eligible. END
 TITLE: 3 Ways to Get Help With Student Loans CONTENT: 3\\. Consolidate Student Loans\n-----------------------------\nFederal student loan consolidation will qualify certain loans for income-driven and forgiveness programs. It's also a way to lower payments on its own by extending your repayment term.\nWhen you consolidate federal loans, the government turns multiple loans into one and gives you a new fixed interest rate that's a weighted average of your previous loans' rates, rounded up to the next one-eighth of 1%. Consolidation won't save you money on interest, but depending on your balance, you'll have more time to repay the consolidation loan—up to 30 years—and your monthly payment may decrease. When you're in need of a much lower monthly payment, though, income-driven repayment may be a better option, since it includes forgiveness.\nPrivate student loan consolidation, or refinancing, can also lead to a lower monthly payment or interest savings over time. It's when a private lender pays off either private or federal student loans and provides you with a new one at a lower interest rate, which is based on your credit and income.\nRefinancing isn't a good choice for borrowers struggling with loans, since you'll need to show strong income and credit to qualify for the lowest interest rates. Plus, refinancing federal loans will disqualify them from programs like income-driven repayment and forgiveness. Consider refinancing just high interest private student loans, if possible, or waiting until your finances are more solid. END
 TITLE: 3 Ways to Get Help With Student Loans CONTENT: The Bottom Line\n---------------\nPaying your student loan bills on time should be a top priority, since missed payments can torpedo your credit scores. But that doesn't mean you should sacrifice saving or spending money on things you love. Get help with your student loans and lower monthly payments so you can focus on other priorities—and, yes, enjoy life too. END
 TITLE: Understanding the Fair Credit Reporting Act CONTENT: What Is the Purpose of the Fair Credit Reporting Act?\n-----------------------------------------------------\nPassed in 1970, the FCRA helps consumers understand what actions they can take in regard to the information in their credit reports. Information is being gathered about consumers all the time: In addition to the three major consumer credit bureaus (Experian, TransUnion and Equifax), there are other organizations that may collect and use your information. For example, banks and credit unions may use information from your credit history to determine whether to approve you for a loan.\nWhy does it matter how information about your credit is used? Whenever you apply for a credit card, a car loan, a mortgage loan or any other form of credit, the issuing company checks your credit history to assess your creditworthiness. The terms you are offered for credit (such as a loan) may be based in part on your credit score and information in your credit report.\nYour credit history affects more than just your ability to get loans or the annual percentage rate (APR) on your credit cards. For instance, prospective landlords could check your credit report to see how creditworthy you are when deciding whether they can trust you to pay your rent on time.\nIn some states, employers may check your credit report for hiring purposes. Also, depending on the state, insurance companies may check your credit to determine whether to offer you coverage. END
 TITLE: Understanding the Fair Credit Reporting Act CONTENT: How Does the FCRA Help Consumers?\n---------------------------------\nThe FCRA helps protect you by regulating how information in your consumer report can be used and accessed. Here's an overview of the key aspects of the law.\n*   The FCRA gives you the right to be told if information in your credit file is used against you to deny your application for credit, employment or insurance.\n*   The FCRA also gives you the right to request and access all the information a consumer reporting agency has about you (this is called \"file disclosure\"). You can get one free file disclosure every 12 months from each national credit bureau by going to AnnualCreditReport.com.\n*   The FCRA gives you access to your credit report but restricts others' access. In general, access is limited to people with a \"permissible purpose,\" such as landlords, creditors and insurance companies. If an employer wants to see your credit report, you must give written consent; employers must meet other requirements as well, and not all states allow employers to pull credit reports as part of an applicant's background check.\n*   If you find what you believe to be inaccurate or incomplete information on your credit report, you have the right to dispute it. The credit bureau will then contact the data furnisher to confirm whether the information is correct. If it's not, the credit bureau will either correct it or remove it within a certain time period. Accurate negative information, such as bankruptcies and late payments, will be removed after a certain time period.\n*   The FCRA gives you the option to opt out of the pre-screened offers of credit you receive.\n*   Finally, the FCRA gives you the ability to put a security freeze on your credit report, which ensures that potential lenders cannot check your credit report without you first lifting the freeze or providing the specific lender with a one-time PIN to access your credit report.\nSee a more detailed summary of the FCRA below or visit consumerfinance.gov\/learnmore\/ for more information. Keep in mind that in addition to the FCRA laws, some states have their own laws regulating consumer credit reporting; you'll find that information below under \"Notification of Rights.\"\n**_Para informacion en espanol, visite www.consumerfinance.gov\/learnmore o escribe a la Consumer Financial Protection Bureau, 1700 G Street N.W., Washington, D.C. 20552._** END
 TITLE: Understanding the Fair Credit Reporting Act CONTENT: A Summary of Your Rights under the Fair Credit Reporting Act\n------------------------------------------------------------\nThe federal Fair Credit Reporting Act (FCRA) promotes the accuracy, fairness, and privacy of information in the files of consumer reporting agencies. There are many types of consumer reporting agencies, including credit bureaus and specialty agencies (such as agencies that sell information about check writing histories, medical records, and rental history records). Here is a summary of your major rights under the FCRA. **For more information, including information about additional rights, go to www.consumerfinance.gov\/learnmore or write to: Consumer Financial Protection Bureau, 1700 G Street N.W., Washington, D.C. 20552.**\n**You must be told if information in your file has been used against you.** Anyone who uses a credit report or another type of consumer report to deny your application for credit, insurance, or employment - or to take another adverse action against you - must tell you, and must give you the name, address, and phone number of the agency that provided the information.\n**You have the right to know what is in your file.** You may request and obtain all the information about you in the files of a consumer reporting agency (your \"file disclosure\"). You will be required to provide proper identification, which may include your Social Security number. In many cases, the disclosure will be free. You are entitled to a free file disclosure if:\n*   a person has taken adverse action against you because of information in your credit report;\n*   you are the victim of identity theft and place a fraud alert in your file;\n*   your file contains inaccurate information as a result of fraud;\n*   you are on public assistance;\n*   you are unemployed but expect to apply for employment within 60 days.\nIn addition, all consumers are entitled to one free disclosure every 12 months upon request from each nationwide credit bureau and from nationwide specialty consumer reporting agencies. See www.consumerfinance.gov\/learnmore for additional information.\n**You have the right to ask for a credit score.** Credit scores are numerical summaries of your creditworthiness based on information from credit bureaus. You may request a credit score from consumer reporting agencies that create scores or distribute scores used in residential real property loans, but you will have to pay for it. In some mortgage transactions, you will receive credit score information for free from the mortgage lender.\n**You have the right to dispute incomplete or inaccurate information.** If you identify information in your file that is incomplete or inaccurate, and report it to the consumer reporting agency, the agency must investigate unless your dispute is frivolous. See www.consumerfinance.gov\/learnmore for an explanation of dispute procedures.\n**Consumer reporting agencies must correct or delete inaccurate, incomplete, or unverifiable information.** Inaccurate, incomplete or unverifiable information must be removed or corrected, usually within 30 days. However, a consumer reporting agency may continue to report information it has verified as accurate.\n**Consumer reporting agencies may not report outdated negative information.** In most cases, a consumer reporting agency may not report negative information that is more than seven years old, or bankruptcies that are more than 10 years old.\n**Access to your file is limited.** A consumer reporting agency may provide information about you only to people with a valid need -- usually to consider an application with a creditor, insurer, employer, landlord, or other business. The FCRA specifies those with a valid need for access.\n**You must give your consent for reports to be provided to employers.** A consumer reporting agency may not give out information about you to your employer, or a potential employer, without your written consent given to the employer. Written consent generally is not required in the trucking industry. For more information, go to www.consumerfinance.gov\/learnmore.\n**You may limit \"prescreened\" offers of credit and insurance you get based on information in your credit report.** Unsolicited \"prescreened\" offers for credit and insurance must include a toll-free phone number you can call if you choose to remove your name and address from the lists these offers are based on. You may opt-out with the nationwide credit bureaus at 1 888 5OPTOUT (1 888 567 8688).\n**You may seek damages from violators.** If a consumer reporting agency, or, in some cases, a user of consumer reports or a furnisher of information to a consumer reporting agency violates the FCRA, you may be able to sue in state or federal court.\n**Identity theft victims and active duty military personnel have additional rights.** For more Information, visit www.consumerfinance.gov\/learnmore.\nConsumers Have The Right To Obtain A Security Freeze\nYou have a right to place a ‘security freeze' on your credit report, which will prohibit a consumer reporting agency from releasing information in your credit report without your express authorization. The security freeze is designed to prevent credit, loans, and services from being approved in your name without your consent. However, you should be aware that using a security freeze to take control over who gets access to the personal and financial information in your credit report may delay, interfere with, or prohibit the timely approval of any subsequent request or application you make regarding a new loan, credit, mortgage, or any other account involving the extension of credit.\nAs an alternative to a security freeze, you have the right to place an initial or extended fraud alert on your credit file at no cost. An initial fraud alert is a 1-year alert that is placed on a consumer's credit file. Upon seeing a fraud alert display on a consumer's credit file, a business is required to take steps to verify the consumer's identity before extending new credit. If you are a victim of identity theft, you are entitled to an extended fraud alert, which is a fraud alert lasting 7 years.\nA security freeze does not apply to a person or entity, or its affiliates, or collection agencies acting on behalf of the person or entity, with which you have an existing account that requests information in your credit report for the purposes of reviewing or collecting the account. Reviewing the account includes activities related to account maintenance, monitoring, credit line increases, and account upgrades and enhancements.\n**States may enforce the FCRA, and many states have their own consumer reporting laws. In some cases, you may have more rights under state law. For more information, contact your state or local consumer protection agency or your state Attorney General. For more information about your federal rights, contact:**\nFOR QUESTIONS OR CONCERNS REGARDING:\nPLEASE CONTACT:\n**1.a.** Banks, savings associations, and credit unions with total assets of over $10 billion and their affiliates.\n**b.** Such affiliates that are not banks, savings associations, or credit unions also should list in addition to the Bureau:\n**a.** Bureau of Consumer Financial Protection  \n1700 G Street NW  \nWashington, DC 20552**b.** Federal Trade Commission: Consumer Response Center — FCRA Washington, DC 20580  \n(877) 382-4357\n**2.** To the extent not included in item 1 above:\n**a.** National banks, federal savings associations, and federal branches and federal agencies of foreign banks\n**b.** State member banks, branches and agencies of foreign banks (other than federal branches, federal agencies, and insured state branches of foreign banks), commercial lending companies owned or controlled by foreign banks, and organizations operating under section 25 or 25A of the Federal Reserve Act\n**c.** Nonmember Insured banks, Insured State Branches of Foreign Banks, and insured state savings associations\n**d.** Federal Credit Unions\n**a.** Office of the Comptroller of the Currency  \nCustomer Assistance Group  \n1301 McKinney Street, Suite 3450  \nHouston, TX 77010-9050**b.** Federal Reserve Consumer Help Center  \nPO Box 1200  \nMinneapolis, MN 55480\n**c.** FDIC Consumer Response Center  \n1100 Walnut Street, Box #11  \nKansas City, MO 64106\n**d.** National Credit Union Administration  \nOffice of Consumer Protection (OCP)  \nDivision of Consumer Compliance and Outreach (DCCO)  \n1775 Duke Street  \nAlexandria, VA 22314\n**3.** Air carriers\nAsst. General Counsel for Aviation Enforcement & Proceedings  \nAviation Consumer Protection Division  \nDepartment of Transportation  \n1200 New Jersey Avenue SE  \nWashington, DC 20590\n**4\\.** Creditors Subject to Surface Transportation Board\nOffice of Proceedings, Surface Transportation Board  \nDepartment of Transportation  \n395 E Street, SW  \nWashington, DC 20423\n**5.** Creditors Subject to Packers and Stockyards Act\nNearest Packers and Stockyards Administration area supervisor\n**6.** Small Business Investment Companies\nAssociate Deputy Administrator for Capital Access  \nUnited States Small Business Administration  \n409 Third Street, SW, 8th Floor  \nWashington, DC 20416\n**7.** Brokers and Dealers\nSecurities and Exchange Commission  \n100 F St NE  \nWashington, DC 20549\n**8\\.** Federal Land Banks, Federal Land Bank Associations, Federal Intermediate Credit Banks, and Production Credit Associations\nFarm Credit Administration  \n1501 Farm Credit Drive  \nMcLean, VA 22102-5090\n**9.** Retailers, Finance Companies, and All Other Creditors Not Listed Above\nFTC Regional Office for region in which the creditor operates **or** Federal Trade Commission: Consumer Response Center - FCRA  \nWashington, DC 20580  \n(877) 382-4357\n#### Notification of Rights\n*   Notification of Rights for California Consumers\n*   Notification of Rights for Colorado Consumers\n*   Notification of Rights for Connecticut Consumers\n*   Notification of Rights for Maryland Consumers\n*   Notification of Rights for Massachusetts Consumers\n*   Notification of Rights for Texas Consumers\n*   Notification of Rights for Vermont Consumers\n*   Notification of Rights for Washington Consumers END
 TITLE: Understanding the Fair Credit Reporting Act CONTENT: #### Notification of Rights\n*   Notification of Rights for California Consumers\n*   Notification of Rights for Colorado Consumers\n*   Notification of Rights for Connecticut Consumers\n*   Notification of Rights for Maryland Consumers\n*   Notification of Rights for Massachusetts Consumers\n*   Notification of Rights for Texas Consumers\n*   Notification of Rights for Vermont Consumers\n*   Notification of Rights for Washington Consumers END
 TITLE: How Does Refinancing Affect Your Credit Score? CONTENT: Refinancing can lower your credit score in a couple different ways:\n*   **Credit check**: When you apply to refinance a loan, lenders will check your credit score and credit history. This is what's known as a hard inquiry on your credit report—and it can temporarily cause your credit score to drop slightly. However, the money you save through refinancing, especially on a mortgage, usually outweighs the negative effects of a small credit score dip. And as you pay off your new loan over time, your credit scores will likely improve as the result of a strong payment history.\n*   **Multiple loan applications**: To find the best loan terms when refinancing, you'll probably apply to several different lenders to see which one gives you the lowest interest rate. To keep all of these hard inquiries from hurting your credit score, make sure to submit all your loan applications within a short period. Most credit scoring models treat loan inquiries between a 14-day to 45-day period as one inquiry, minimizing the hit to your credit score. Applying for different loans over a period of several months, on the other hand, could have a lasting negative effect on your credit score.\n*   **Closing an account**: The loan you are refinancing will be closed, which can also lower your credit score because you are closing a long-standing credit account. However, some credit scoring models will take into account your payment history on the closed loan. As long as the closed account was closed in good standing, this lessens the hit to your credit score. In addition, as you pay down the new loan, your credit score should improve again.\n### Refinancing Your Mortgage\nIf you are refinancing a mortgage, make sure that you continue making payments on your old loan. Once your new mortgage loan is approved, it's easy to get confused as to what payments are due, when and to which lender.\nThe new lender may tell you that you can skip your last payment on the old loan because the new loan will pay it off. However, if the new lender's loan payoff arrives after your last payment on the old mortgage is due, you could get dinged for a late payment, negatively affecting your credit score. Since it's your credit score that's on the line, it's your responsibility to ensure that the final payment is made on time.\n### Refinancing Your Auto Loan\nRefinancing a car loan may be worthwhile if interest rates have dropped or your credit score has improved since you took out the loan. You might also want to refinance your car loan if you simply need to reduce your monthly expenses.\nRefinancing for a longer-term auto loan will lower your monthly payments, but depending on how long you stretch out the loan, it could increase the total amount you pay for the car. Make sure that the new interest rate is low enough that it doesn't drastically increase your total cost. To refinance, you'll need a car that has held its value; generally, the car must be worth more than what you still owe on it for lenders to consider refinancing.\n### Refinancing a Personal Loan\nYou might consider refinancing a personal loan if your credit score has improved or interest rates have dropped since you first got the loan. You might also want to refinance to consolidate several personal loans into one, larger personal loan.\nLike any other type of refinancing, refinancing a personal loan will cause a temporary dip in your credit scores due to the hard inquiries on your credit report. However, if you're using a new personal loan to refinance more than one existing personal loan, you'll have fewer open accounts with outstanding balances, which can help boost your credit score. END
 TITLE: How Does Refinancing Affect Your Credit Score? CONTENT: What to Do After Refinancing\n----------------------------\nWhenever you refinance a loan, your credit score will decline temporarily, not only because of the hard inquiry on your credit report, but also because you are taking on a new loan and haven't yet proven your ability to repay it. Be sure to make your payments on time, and after a few months, your credit score should go back to where it was. In fact, it may even improve as you show that you're able to handle the new loan. To see how refinancing and your new loan payments are affecting your credit score, you can get a free credit score to check.\nRefinancing a mortgage, auto loan, personal loan or other loan can help lower your interest rates, reduce your monthly payment and give you more wiggle room in your budget. But because refinancing can negatively affect your credit score, it's important to carefully weigh the benefits versus the costs before you start shopping for a new loan. END
 TITLE: Why You Should Check Your Credit Report Even If Your Credit Is Frozen CONTENT: Reasons for Freezing Your Credit\n--------------------------------\nAlso known as a security freeze, a credit freeze keeps lenders, creditors, businesses and others from gaining access to your credit report. If someone needs to check your credit—for instance, if you're buying a car and want to get an auto loan—you must personally lift the credit freeze and give permission for the creditor to see your credit report. Because companies need to see your credit report to extend credit, a credit freeze helps to keep thieves from opening fraudulent accounts in your name without your knowing about it.\nPeople may place a credit freeze on their report for many reasons. Some do it after having suffered fraud or identity theft. Some do it to gain peace of mind after being notified that data they shared with a business, such as credit card information or Social Security numbers, has been breached in a hacking attack. Others do it as a pre-emptive measure to protect themselves or their children. (Parents can freeze the credit report of a child under age 16; if the child doesn't have a credit report, credit bureaus can create one for the child and then freeze it.) END
 TITLE: Why You Should Check Your Credit Report Even If Your Credit Is Frozen CONTENT: Why You Need to Check Your Credit Report Even if You Have a Security Freeze\n---------------------------------------------------------------------------\nPlacing a credit freeze is a helpful step toward protecting your good credit. However, having a credit freeze doesn't mean you can rest easy and not bother paying attention to your credit report. To maintain a good credit score, you still need to perform some regular maintenance by checking your credit report even if you have a security freeze.\nWhy is this necessary? A credit freeze can prevent thieves from opening new accounts in your name—but it doesn't keep them from fraudulently using accounts you already have. For example, a thief couldn't open a new credit card in your name if you have a credit freeze, but they could gain access to your existing credit card information and use that to make fraudulent purchases. This type of fraud is actually more prevalent than opening new accounts, so it's important to be on the alert for it. END
 TITLE: Why You Should Check Your Credit Report Even If Your Credit Is Frozen CONTENT: How to Check Your Credit Report When You Have a Credit Freeze\n-------------------------------------------------------------\nGood news: You don't have to lift your credit freeze to check your credit report. By law, individuals are allowed to check their own credit report even if they have a credit freeze in place. All you have to do is request a free credit report, just as you would if your credit were not frozen.\nIf you see anything suspicious on your credit report, such as inquiries from unfamiliar companies, let the credit bureaus know right away so they can take steps to correct the error. If necessary, you may want to take additional steps to protect your credit, such as placing a fraud alert on your credit file or locking your credit file.\nBy keeping a vigilant eye on your credit even when your file is frozen, you'll help protect your financial reputation. To get started, get your free Experian credit report. END
 TITLE: How to Choose a Credit Card CONTENT: Know Where Your Credit Stands\n-----------------------------\nBefore you start to apply for credit cards, you may want to review your credit report and know your credit scores. Many credit card issuers will check your credit during the application process, and base an approval or denial on the results. If you're approved, your credit can also impact your card's interest rate and credit limit.\nIf you have excellent credit and a good income, you may have your pick of the litter. But if you need to work on your credit and have a high debt-to-income ratio, you'll have fewer options.\nYou can check your Experian credit report and review your FICO® Score☉ with a free Experian CreditWorksSM account. You'll also get a personalized breakdown of which factors are impacting your credit score, and a tracker you can use to see how your score has changed over time.\nWhile credit card issuers don't necessarily have a specific credit score requirement, many cards are designed for people in specific credit tiers. For example, luxury credit cards generally offer lots of rewards and benefits, but also require good credit or better. Starter credit cards may have fewer perks, but it's easier to qualify for one with bad credit.\nIf you're looking for personalized credit card offers, Experian CreditMatchTM takes your credit into account and matches you with credit cards that you'll likely be able to get. END
 TITLE: How to Choose a Credit Card CONTENT: How to Pick a Credit Card to Build or Improve Credit\n----------------------------------------------------\nThere are a few options if you're brand new to credit, or if you have poor credit and want to use a credit card to help rebuild your credit.\nIf you have poor credit, you'll likely be best off with a secured credit card. Secured credit cards are credit cards that work the same as unsecured credit cards. The only difference is you'll put down a refundable security deposit when you open an account.\nThe card issuer holds on to your deposit and will generally give you a credit limit equal to the deposit amount. Having the money set aside reduces the issuer's risk of losing money if a cardholder doesn't repay their credit card bill, which is why issuers are open to giving secured cards to applicants with poor credit histories.\nWhen you're looking for a secured card, try to get a card that:\n*   Has a low annual fee or none at all.\n*   Has a grace period.\n*   Reports to all three major credit bureaus: Experian, TransUnion and Equifax.\nHere are some of our top picks for people who have bad or poor credit.\nA secured card could also be a good option if you're brand new to credit. Additionally, you could consider a credit card from an issuer that doesn't require a credit check.\nInstead of using your credit history, the issuer could link your bank account and review your transaction history. It can then approve or deny your application based on your cash flow—your income and spending.\nSome of these cards offer rewards, helpful benefits and don't have annual fees. Here are a few of our top picks. END
 TITLE: How to Choose a Credit Card CONTENT: Choosing a Credit Card to Earn Rewards\n--------------------------------------\nIf you have good to excellent credit and want a card for everyday purchases, a rewards credit card could be a great option. These cards tend to have a high interest rate, and some have high annual fees. But if you pay your balance in full each month and know how to use your rewards effectively, you could get hundreds or thousands of dollars in benefits each year.\nFirst, decide which type of rewards program you want to use:\n*   **Cash back**: With a cash back credit card you'll earn cash back rewards each time you make a purchase. Cash back rewards are easy to calculate and use, which many cardholders find appealing.\n*   **Card issuer**: Some credit card issuers have rewards programs where you earn points or miles each time you make a purchase. You'll then be able to decide how to redeem your rewards, and your options may include cash back, gift cards, travel or transfers to other loyalty programs. Programs like this through card issuers can be a little trickier to navigate than cash back rewards as the value of your rewards can vary depending on the program and redemption options.\n*   **Co-branded cards**: Using a co-branded credit card, you can earn points in a company's loyalty program. There are co-branded airline, hotel and retail store cards, each with its own benefits and drawbacks. If you tend to use the same airlines or hotels, or frequently shop at the same stores, a co-branded card could be a good option.\nCredit cards also tend to offer rewards using three systems:\n*   **Flat rate**: You'll earn the same rewards on all your purchases. Flat rate rewards don't require any extra thought and could be the best option if you tend to use your card for everything and shop at a wide variety of stores.\n*   **Tiered**: With tiered rewards, your rewards rate will be different depending on where you shop. For example, you might get 2 points per dollar on dining and travel purchases and 1 point per dollar on everything else. Tiered cards can be especially rewarding if you tend to spend a lot of money within one or two categories, or as a complement to a flat rate or rotating rewards card.\n*   **Rotating**: A few cards give you bonus rewards on purchases at certain types of retailers, and the list changes every three months. With some cards, for example, you'll earn 5% (or 5 points) per dollar on purchases within the bonus category on the first $1,500 you spend during the quarter—and 1% on everything else. The 5% rate is high, but the downside is the issuer gets to pick the categories and they might not align with your usual spending, and the base (non-bonus) rewards rate is usually low. With these programs, you need to remember to activate the bonus each quarter to earn the higher rewards.\nBetween the three types of rewards programs and three types of earning structures, there's a lot to consider when choosing a rewards credit card. Fortunately, you can quickly narrow down your list of potential fits.\nFor example, if you want to earn cash back and get extra rewards when you're buying groceries, consider a tiered rewards card and search online for the best cash back credit cards for groceries. You'll quickly find lists of the top picks, with the cards' terms and pros and cons listed for you to review. END
 TITLE: How to Choose a Credit Card CONTENT: Choosing a Credit Card to Finance a Purchase\n--------------------------------------------\nCredit cards charge interest, so it's best to pay your bill in full each month to avoid accruing interest. Thanks to promotional offers for new cardholders, however, it can be wise to make a large purchase using a credit card with an introductory 0% annual percentage rate (APR) offer and pay it off over several months.\nThe best 0% APR cards will give you a promotional period of around 12 to 21 months from the time you open the account. Interest won't accrue on your purchases during this time, and if you pay off your balance by the end of the promotional period, you won't wind up paying any interest. Coupled with smart budgeting, a good 0% APR intro offer could save you lots of money over a loan.\nOn the other hand, if you currently have credit card debt that's accruing interest, look into balance transfer credit cards. These cards offer similar 0% APR introductory offers, but the 0% rate applies to balances that you transfer to the card rather than purchases. You may need to pay a fee based on the amount of debt you transfer, but some of the best balance transfer cards don't charge the fee to new cardholders.\nWith either type of card, read the terms of the card and offer carefully. For example, if a card's 0% APR offer only applies purchases, your balance transfers will still accrue interest. Or, if you have only a 0% APR balance transfer offer, your purchases could accrue interest. Also, make sure you have a plan to pay off the balance before the introductory period ends and the standard interest rate kicks in. END
 TITLE: How to Choose a Credit Card CONTENT: Try a Matchmaking Service\n-------------------------\nFinding the right credit card depends on your goals, how you want to use the card and your creditworthiness. You'll need to start with personal reflection to set your goals. Once you're ready to apply, you can use a service such as Experian CreditMatchTM to get personalized credit card offers based on your credit history. END
 TITLE: What Are Inquiries On Your Credit Report? - Experian CONTENT: How Do Credit Inquiries Work?\n-----------------------------\nWhen deciding whether to extend you credit—and if so, how much and at what interest rate—lenders typically obtain your credit report from one or more of the three national consumer credit bureaus (Experian, TransUnion and Equifax). Your credit report offers a summary of your debts and payment history on those debts.\nAs part of their evaluation process, creditors often also obtain one or more credit scores: three-digit numbers derived from statistical analysis of your credit report's contents. A higher score indicates lower likelihood you'll fail to repay your debts. When you apply for credit or services such as a cellphone account, your application usually indicates that you are giving the lender permission to do a credit check. When lenders run those credit checks, hard inquiries appear on your credit report.\nCertain companies are also legally allowed to access your credit information for reasons other than an application you made, such as when your current lenders periodically check your reports or when a potential lender sends you a preapproved offer.\nEmployers may also check your credit history with your written permission, although they will not receive a credit score. In addition, you may check your own credit reports and credit scores, and it's wise to do so regularly—these checks have no effect on your credit rating. Credit checks such as these, which are not related to credit applications, generate soft inquiries on your credit report. END
 TITLE: What Are Inquiries On Your Credit Report? - Experian CONTENT: What Is a Hard Inquiry?\n-----------------------\nA hard inquiry appears on your credit report when a lender checks your credit in response to an application for a new loan, credit card or line of credit.\nWhenever you seek new credit, there's the potential for a new debt, which may temporarily lower scores slightly until you can show that you are managing that new debt responsibly. Credit scoring models such as those from FICO® and VantageScore® sometimes account for that increase in risk by lowering your scores slightly; FICO® says hard inquiries typically dock scores by less than five points.\nHard inquiries remain on your credit report for up to two years, but as long as you keep up with your debt payments, credit scores often rebound from an inquiry within a few months. And, most credit scoring models no longer count a hard inquiry in score calculations at all after 12 months. END
 TITLE: What Are Inquiries On Your Credit Report? - Experian CONTENT: What Is a Soft Inquiry?\n-----------------------\nSoft inquiries appear on your credit report when someone runs a credit check for reasons unrelated to lending you money. These events are not associated with greater repayment risk, so they have no effect on your credit scores. Here are a few examples:\n*   Utility companies may use credit checks to decide if they require security deposits on leased equipment such as Wi-Fi routers or satellite dishes.\n*   Auto insurers may use credit checks to help set premiums, since safe driving habits and high credit scores show strong correlation.\n*   Credit card issuers with whom you already have accounts may check your credit scores for purposes of marketing new cards or other products to you.\nIf you obtain your own credit report or check your credit score using a credit monitoring service such as Experian's, that will generate a soft inquiry on your credit report. But, as with other soft inquiries, monitoring your own credit scores cannot hurt your credit. END
 TITLE: What Are Inquiries On Your Credit Report? - Experian CONTENT: How to Manage Hard Inquiries\n----------------------------\nBecause hard inquiries can reduce your credit score, it's wise to refrain from seeking multiple new loans or credit cards in rapid succession. Applying for multiple credit cards in quick sequence or at the same time can ding your credit score unnecessarily, for instance.\nBecause hard inquiries can temporarily reduce your credit score, it's wise to only apply for credit when you really need it. Although some credit scoring models count multiple inquiries for the same purpose made within a short period of time as one, several different types of inquiries made within a short period of time can ding your credit score or cause lenders to worry that you are experiencing financial distress.\nIt's also a good idea to avoid loan or credit applications for six months to a year before you apply for a mortgage or car loan, so your application reflects your best possible credit score.\nOnce you're ready to seek a loan, however, it's OK to submit applications to multiple lenders to shop for the best combination of interest rates and fees. You don't have to worry that doing so will mean a cumulative hit on your credit scores: The FICO® Score☉ and VantageScore models are designed to allow for rate shopping on loans, so they treat multiple inquiries related to loans of similar type as one, as long as they occur within a short time of one another. To play it safe, keep your rate shopping within a two-week period. END
 TITLE: What Are Inquiries On Your Credit Report? - Experian CONTENT: How to Remove Hard Inquiries\n----------------------------\nYou should check your credit reports from all three credit bureaus regularly—at least once each year—which you can do for free at AnnualCreditReport.com. You can also check your Experian credit report for free anytime. One thing to look for is any hard inquiry you don't recognize. Unexplained hard inquiries, while rare, can lower your credit scores—but more importantly, they can be signs of criminal activity.\nIf you see a hard inquiry you don't recognize, reach out to the creditor in question, using the contact information included in your credit report. Suspicious inquiries aren't always connected to illegitimate activity: An unfamiliar creditor may turn out to be the lending partner of a retailer where you applied for a credit card or a dealership where you applied for an auto loan, for instance.\nIf you confirm a hard inquiry is connected to fraudulent activity such as someone applying for credit with your information, take these steps:\n*   Report it to the appropriate law-enforcement agencies.\n*   Consider protecting your credit reports with a fraud alert or security freeze.\n*   Dispute the inquiry to have it removed from your credit report. END
 TITLE: Personal Loans | Get an Online Loan with Low Interest | Prosper CONTENT: Why choose a personal loan through Prosper?\n-------------------------------------------\nFast\nGet your funds as soon as 1 business day after completing requirements.1\nFlexible\nChoose 3 or 5 year loan terms.3\nWorry-free\nKeep money in your pocket with no pre-payment penalties.\nChecking your rate won't affect your credit score END
 TITLE: Personal Loans | Get an Online Loan with Low Interest | Prosper CONTENT: Since 2005, over 1 million people have chosen Prosper to help fund their dreams.\n--------------------------------------------------------------------------------\nmarie\nEasy, quick and no hassles. Loved it\njan\nQuick process, fee is too high\ndaphne\nYour rates are reasonable.\ngerald\nI was very happy with the loan application and your promptness.\nvalica\nAll I can say is thanks for the opportunity. It came at the right time and now is paid off. END
 TITLE: Personal Loans | Get an Online Loan with Low Interest | Prosper CONTENT: How it works\n------------\n1\nCheck Your Rate\nShare some information with us to see what interest rate you qualify for.\n2\nChoose Your Loan\nReview your loan offers and choose the one that works best for you.\n3\nGet Your Funds\nWe’ll use direct deposit to send your money fast.\nChecking your rate won't affect your credit score END
 TITLE: Personal Loans | Get an Online Loan with Low Interest | Prosper CONTENT: Common questions about personal loans\n-------------------------------------\nFind answers to our community’s questions below, or visit our Help Center to learn more.\nWhat is a personal loan?\nA personal loan is money borrowed from a lender that you pay back in fixed monthly payments. Borrowers can pay back Prosper personal loans in 3 or 5 year terms.3\nPersonal loans through Prosper are unsecured, meaning they're not backed by collateral like your home. Instead, our partner, WebBank, issues personal loans based on creditworthiness.\nProsper borrowers can use their personal loan for a variety of expenses. Some choose to use their loan for home repairs or debt consolidation, while others use it to fund big purchases.\nHow do I get a personal loan?\nUse our tool to check your rate and see what personal loan offers you may be eligible for. Checking your rate won't affect your credit score. Review your offers and choose the loan terms that work best for you. Once you accept an offer, you’ll receive your money as soon as 1 business day after completing the necessary requirements.1\nIf you’re applying by yourself, you can also call us at 1-(866)-615-6319 to apply for a personal loan by phone. If you’re applying with another person, follow the steps above.\nWill I have to pay any fees on a personal loan through Prosper?\nFor a full overview of fees associated with a personal loan through Prosper, visit our Help Center.\nAs explained in our Help Center article, your loan may be subject to 4 types of fees:\n1.  Origination Fee\n2.  Check Payment Fee\n3.  Late Fee\n4.  Insufficient Funds Fee\nYou can also refer to your Borrower Registration Agreement and Promissory Note (stored in your online account) for more details about fees.\nWhat if I don’t qualify for a personal loan?\nWebBank issues personal loans based on creditworthiness. Borrowers who accept a personal loan through must have a credit score of 640 or higher to qualify for a loan.\nIf you don't qualify for a personal loan with Prosper, consider applying with a co-applicant. This could improve your chances of getting an offer. Plus, it might lower your rate. Your co-applicant should be someone you trust with strong credit and a steady job.\nWhat is a personal loan?\nHow do I get a personal loan?\nWill I have to pay any fees on a personal loan through Prosper?\nWhat if I don’t qualify for a personal loan?\nA personal loan is money borrowed from a lender that you pay back in fixed monthly payments. Borrowers can pay back Prosper personal loans in 3 or 5 year terms.3\nPersonal loans through Prosper are unsecured, meaning they're not backed by collateral like your home. Instead, our partner, WebBank, issues personal loans based on creditworthiness.\nProsper borrowers can use their personal loan for a variety of expenses. Some choose to use their loan for home repairs or debt consolidation, while others use it to fund big purchases.\nUse our tool to check your rate and see what personal loan offers you may be eligible for. Checking your rate won't affect your credit score. Review your offers and choose the loan terms that work best for you. Once you accept an offer, you’ll receive your money as soon as 1 business day after completing the necessary requirements.1\nIf you’re applying by yourself, you can also call us at 1-(866)-615-6319 to apply for a personal loan by phone. If you’re applying with another person, follow the steps above.\nFor a full overview of fees associated with a personal loan through Prosper, visit our Help Center.\nAs explained in our Help Center article, your loan may be subject to 4 types of fees:\n1.  Origination Fee\n2.  Check Payment Fee\n3.  Late Fee\n4.  Insufficient Funds Fee\nYou can also refer to your Borrower Registration Agreement and Promissory Note (stored in your online account) for more details about fees.\nWebBank issues personal loans based on creditworthiness. Borrowers who accept a personal loan through must have a credit score of 640 or higher to qualify for a loan.\nIf you don't qualify for a personal loan with Prosper, consider applying with a co-applicant. This could improve your chances of getting an offer. Plus, it might lower your rate. Your co-applicant should be someone you trust with strong credit and a steady job. END
 TITLE: Bad Credit Loans CONTENT: Why choose Bad Credit Loans\n---------------------------\n### Committed to responsible lending\nWe are not a lender and can’t control the lenders or lending partners in our network, but we can provide you information to help you make responsible decisions about the loan offer you may receive.\nLearn more on our How It Works page.\n### , security, & 24\/7 service\nWe protect your information with advanced encryption technology.\nWe’re available 24 hours a day, 7 days a week.\nLearn more in our  Policy.\n### Three easy steps, all online\nComplete the online form on our website and our network of lenders will determine if you are eligible for a loan offer.\nIf you’re approved, just review and accept your loan — all online! END
 TITLE: Credit Cards: Find the Right Offer For You & Apply Online - Bankrate CONTENT: Credit Card Calculators\n-----------------------\n#### Credit Card Payoff Calculator\n*   How long it will take to pay off your balance.\n*   How much you'll pay in interest over time.\nStart a calculation\n#### Balance Transfer Calculator\n*   How long it will take to pay off your balance with a transfer.\n*   How much you'll pay in transfer fees.\n*   How 0% APR offers can help you avoid paying interest.\nStart a calculation END
 TITLE: How Can I Borrow Money with Bad Credit? CONTENT: *   Loans from **$500** to **$10,000**\n*   Receive a loan decision in minutes\n*   Get funds directly to your bank account\n*   Use the loan for any purpose\n*   Click here for official site, terms, and details.\nLoan Amount\nInterest Rate\nLoan Term\nLoan Example\n$500 to $10,000\n5.99% - 35.99%\n3 to 72 Months\nSee representative example END
 TITLE: How Can I Borrow Money with Bad Credit? CONTENT: *   Loans from **$500** to **$10,000**\n*   Get connected with a lender\n*   Simple form & quick funding\n*   Get your money as soon as next the business day, if approved\n*   Click here for official site, terms, and details.\nLoan Amount\nInterest Rate\nLoan Term\nLoan Example\n$500 to $10,000\n5.99% - 35.99%\n3 to 60 Months\nSee representative example END
 TITLE: How Can I Borrow Money with Bad Credit? CONTENT: *   Loans from **$500** to **$35,000**\n*   Large lender network\n*   Fast loan decision\n*   Use the loan for any purpose\n*   Funding as soon as one business day, if approved\n*   Click here for official site, terms, and details.\nLoan Amount\nInterest Rate\nLoan Term\nLoan Example\n$500 to $35,000\n5.99% - 35.99%\n3 to 72 Months\nSee representative example END
 TITLE: How Can I Borrow Money with Bad Credit? CONTENT: *   Network of dealer partners has closed $1 billion in bad credit auto loans\n*   Specializes in bad credit, no credit, bankruptcy and repossession\n*   In business since 1999\n*   Easy, 30-second pre-qualification form\n*   Bad credit applicants must have $1500\/month income to qualify\n*   **Click here for application, terms, and details.**\nInterest Rate\nIn Business Since\nApplication Length\nReputation Score\n3.99% - 29.99%\n1999\n3 minutes\n9.5\/10\n*   Free, no-obligation application\n*   Specializes in auto loans for bankruptcy, bad credit, first-time buyer, and subprime\n*   Affordable payments and no application fees\n*   Same-day approval available\n*   Connects 1000's of car buyers a day with auto financing\n*   Click here for application, terms, and details.\nInterest Rate\nIn Business Since\nApplication Length\nReputation Score\nVaries\n1994\n3 minutes\n9.0\/10\n*   Loans for new, used, and refinancing\n*   Queries a national network of lenders\n*   Bad credit OK\n*   Get up to 4 offers in minutes\n*   Receive online loan certificate or check within 24 hours\n*   Click here for application, terms, and details.\nInterest Rate\nIn Business Since\nApplication Length\nReputation Score\nVaries\n2003\n2 minutes\n7.5\/10 END
 TITLE: How Can I Borrow Money with Bad Credit? CONTENT: *   Refinance loans, new home purchase, and reverse mortgages\n*   Compare lenders with no obligations or fees\n*   Simple and secure form\n*   Receive up to 5 free rate quotes in 2 minutes and see what you can save on your payment.\n*   Rates are at historic lows\n*   See application, terms, and details.\nInterest Rate\nIn Business Since\nApplication Length\nReputation Score\nVaries\n1979\n4 minutes\n8.5\/10\n*   Options for home purchase or refinance\n*   Get 4 free refinance quotes in 30 seconds\n*   Network of lenders compete for your loan\n*   Trusted by 2 million+ home loan borrowers to date\n*   Interest rates are near all-time lows\n*   See application, terms, and details.\nInterest Rate\nIn Business Since\nApplication Length\nReputation Score\nVaries\n2004\n4 minutes\n8.5\/10\n*   _Easy to Own_SM programs give options for those with lower income, limited credit history, and low down payment needs.\n*   Provides the potential for minimal out-of-pocket expenses with seller contributions.\n*   Offers loans that don't require monthly mortgage insurance.\n*   Requires less cash upfront for your down payment and closing costs.\n*   See application, terms, and details.\nInterest Rate\nIn Business Since\nApplication Length\nReputation Score\nVaries\n1852\n6 Minutes\n8.0\/10 END
 TITLE: How Long Does a Foreclosure Stay on Your Credit Report? CONTENT: *   Free consultation: **1-855-200-2394**\n*   Most results of any credit repair law firm\n*   Clients saw over 9 million negative items removed from their credit reports in 2016\n*   More than 500,000 credit repair clients helped since 2004\n*   Cancel anytime\n*   Click here for sign-up, terms, and details.\nBetter Business Bureau\nIn Business Since\nMonthly Cost\nReputation Score\nSee BBB Listing\n2004\n$89.95\n10\/10\n*   Free consultation: **1-855-200-2393**\n*   Helped with over 7.5 million removals on members' behalf since 2012\n*   Free access to your credit report summary\n*   Three-step plan for checking, challenging and changing your credit report\n*   Online tools to help clients track results\n*   Click here for sign-up, terms, and details.\nBetter Business Bureau\nIn Business Since\nMonthly Cost\nReputation Score\nSee BBB Listing\n2012\n$99\n9.5\/10\n*   Free consultation: **1-888-805-4944**\n*   In business since 1989\n*   Quick pace: Sky Blue disputes 15 items monthly, track your progress 24\/7\n*   90-day 100% money-back guarantee\n*   Low $79 cost to get started, cancel or pause membership anytime\n*   **Click here for sign-up, terms, and details.**\nBetter Business Bureau\nIn Business Since\nMonthly Cost\nReputation Score\nSee BBB Listing\n1989\n$79\n9.5\/10 END
 TITLE: Credit Bureau Contact Info | Phone Number, Address CONTENT: How to Contact Credit Bureaus — Equifax, Experian, TransUnion\n-------------------------------------------------------------\n###### Written by: Kristy Welsh\nDo you want to contact one of the big three credit reporting agencies? The information on this page regarding Experian, Equifax and TransUnion may change, **but is current as of August 2017**. There are a number of reasons why you would need to contact one of the credit bureaus directly — from ordering credit reports to filing credit disputes — so we have included here numerous ways you can reach them. Note, reviewing your credit reports at least once a year helps you protect yourself from identity theft catch incorrect information reported in your credit file, and track the credit repair process. \nHow to Order Your Credit Report\n-------------------------------\nOrdering your credit reports has gotten easier thanks to changes in legislation. You can order your credit reports in one of the following ways:\n*   Go to AnnualCreditReport.com to order all three reports once a year for free\n*   Go to the [Equifax site](about:blank) \n*   Go to the [TransUnion site](about:blank)\n*   Go to the [Experian site](about:blank)\nIf you want to order your credit reports directly from the credit bureaus, they will charge you a fee and try to sign you up for one of their paid credit monitoring services. These services may be worth it if you are trying to clean up your credit, as you can keep an eye on changes to your credit reports and scores, and monitor how well your credit repair efforts are working. If you don't want to pay for your reports, then you will have to get them from AnnualCreditReport.com, which you can supplement with free credit monitoring subscriptions sites like Credit Karma and Credit.com. \nCredit Bureaus Address\n----------------------\n### **Experian**  \nP.O. Box 4500  \nAllen, TX 75013\n### **Equifax Information Services, LLC**  \nP.O. Box 740256  \nAtlanta, GA 30374-0256\n### **TransUnion, LLC**  \n**Consumer Dispute Center**  \nP.O. Box 2000  \nChester, PA 19016\nCredit Bureaus Phone Number\n---------------------------\n### **Experian**  \n(888) 397-3742\n### **Equifax**  \n(866) 349-5191\n### **TransUnion, LLC**  \n(800)**) 680-7289**\nCredit Bureaus on the Internet\n------------------------------\n*   [Experian](about:blank)\n*   [Equifax](about:blank)\n*   [TransUnion](about:blank)\nBackground of Credit Reporting Agencies\n---------------------------------------\n*   [Experian](about:blank \"Experian\")\n*   [Equifax](about:blank \"History of Equifax\")\n*   [TransUnion](about:blank \"History of Transunion\")\nFree Credit Reports\n-------------------\nYou can get a free report:\n*   Once a year from www.AnnualCreditReport.com (does not include your credit score).\n*   If you are turned down for credit, employment, or insurance within the last 60 days. Take the written proof of your rejection and mail it to the credit bureaus, requesting your free report.\n*   If you were charged higher rates and fees or deposits based on a credit report issued by a credit bureau, you have the right to get a free copy from that bureau (free copy from that bureau only).\n*   If you certify in writing that you are unemployed and plan to seek employment in the next 60 days.\n*   If you are on welfare.\n*   If you write to say you were a victim of fraud. \nThere are more ways to get your credit report, [learn more about getting your credit report](about:blank).\n[Learn more about credit bureaus](about:blank). END
 TITLE: Credit Bureau Contact Info | Phone Number, Address CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Credit Bureau Contact Info | Phone Number, Address CONTENT:    |  |  |  | \n: . END
 TITLE:  and Quizzle)\nWith the new Bankrate, your credit is run as you search for products.  They base your loan prequalification’s on:\n*   TransUnion credit report\n*   VantageScore 3.0 based on TransUnion credit report (**not** a FICO Score)\n*   Updated every 3 months\n**WalletHub**\n*   TransUnion credit report\n*   VantageScore 3.0 based on TransUnion credit report (**not** a FICO Score)\n*   Updated daily\nThere’s not a lot the credit bureaus offer for free, so it’s worth taking advantage of this free offer from Experian.\n[**Experian CreditWorks Basic**](about:blank)\n*   See your Experian credit report and FICO score every 30 days\nThis makes a good supplement to Credit.com. Credit.com updates your Experian credit information every two weeks, but it’s only a Credit Report Card. Experian CreditWorks Basic shows your actual credit report.\n**NOTE:** If you’re only going to subscribe to one of these sites, make it Credit Karma, as they show you credit reports from both TransUnion and Equifax. But it’s worth signing up for Credit.com, too. Even though the free option only includes a “Credit Report Card,” you at least get insight into your third credit report (and score) – from Experian.\n2) Credit Scores and Credit Monitoring For a Monthly Fee\n--------------------------------------------------------\nAll of the following sites offer free services (listed above), but if you want to see your full credit reports and scores, it’s going to cost you.\n**Credit.com** **— $24.99\/month\\***\n*   All 3 bureaus reports\n*   28 different FICO Scores\n*   [Credit Monitoring](about:blank) with all the perks\n[**Credit Sesame**](about:blank) **— $9.95 to $19.95\/month**\n*   One-time TransUnion credit report — $9.95 (flat fee)\n*   Monthly credit reports from all three bureaus — $19.95 (recurring monthly) plus credit monitoring\n**NOTE:** We do not recommend any of these paid services. You can see your full Experian credit report for free through Experian CreditWorks Basic. You can see your full TransUnion credit report for free every 7 days through Credit Karma (as well as Equifax). WalletHub updates TransUnion credit reports daily. And as for your FICO Score, you can see that for free through Discover Credit Scorecard.\n3) Credit Bureau Offers Where You Can Get Your Credit Scores\n------------------------------------------------------------\nThis next section might feel a bit overwhelming. If so, it might be worth skipping to our note at the end explaining why we don’t recommend any of these paid credit bureau services anyway.\n**Experian**\n**It bears repeating that there is a free option:**  [You can see your FICO 8 credit score and Experian credit report for free](about:blank)**.  Just give some personal identification and boom, access to your report and your score.  However, if you want to see all three credit report plus get credit monitoring, there is a paid option.**\n[**Experian CreditWorks Premium**](about:blank) **— $24.99\/month\\***\n*   Monthly 3-Bureau FICO® Scores\\*\n*   3-Bureau Credit Monitoring and Alerts\n*   Daily FICO® Scores Based on Experian Data\n*   Experian CreditLock with Alerts\n*   FICO® Score Tracker\n*   Identity Protection and Alerts\n*   Up to $1 Million [Identity Theft Insurance](about:blank#\/insuranceSummaryOfBenefits?insuranceAmount=1,000,000&productName=Experian%20CreditWorks%3Csup%3E%26%238480%3B%3C%2Fsup%3E%20Premium)※\n*   Dedicated Fraud Resolution Support\n*   Lost Wallet Assistance\n\\*7 days free, then $24.99\/month\n**Equifax**\n[**Equifax Complete Premiere Plan**](about:blank) **— $19.95\/month**\n*   Regular access to Equifax Credit Score, which is based on their own unique algorithm (not FICO or VantageScore)\n*   Annual access to 3-bureau Equifax Credit Scores and credit profiles\n[**Equifax Complete Family Plan**](about:blank) **— $19.95\/month**\n*   Regular access to Equifax Credit Score (not FICO or VantageScore) based on Equifax credit report\n*   Annual access to 3-bureau Equifax Credit Scores and credit profiles\n*   Covers two adults\n[**Score Watch 1-Bureau Credit Monitoring**](about:blank) **— $14.95\/month**\n*   Access to Equifax credit reports twice a year\n*   Access to FICO Score 5 (based on Equifax credit report) twice a year\n**TransUnion**\n[**1-Bureau Credit Monitoring**](about:blank) **— $24.95\/month**\n*   Unlimited access to TransUnion credit report\n*   Unlimited access to VantageScore 3.0 based on TransUnion credit report\n**NOTE:** Since we have already outlined in previous sections how to see your credit reports for free, there is no reason to pay for them through the credit bureaus. Yes, these paid services give you access to FICO Scores. But you can see your FICO Score for free through Discover Credit Scorecard. And if it’s industry-specific FICO Scores you need, pay for them through myFICO.com (details below).\n4) myFICO.com\n-------------\nThough it’s never necessary to pay to see your credit reports, it might be worth paying to see your industry-specific credit scores when you’re looking for auto or home financing. In that case, myFICO.com is the way to go.\n**Basic** **— $19.95\/month**\n*   Experian credit report\n*   FICO Scores 8 and 9, and industry-specific scores\n*   Updates every month\n**Advanced — $29.95\/month**\n*   Credit reports from all three bureaus\n*   FICO Scores 8 and 9, and industry-specific scores\n*   Updates every three months\n*   Credit monitoring with all the perks.\n**Premier - $39.95\/month**\n*   Complete 3 bureau coverage\n*   FICO Scores from all three bureaus\n*   Updates every month\n*   Credit monitoring with all the perks.\n**NOTE:** Of the three options above, we recommend myFIco Advanced, unless you are actively repairing your credit, then you probably want to see your scores and credit reports more often, then go with Premiere. END
 TITLE: Information on Credit Scores - VantageScore, FICO Score CONTENT: Credit Scores — FICO Score, VantageScore, Other Scoring Models\n--------------------------------------------------------------\n###### Written by: Kristy Welsh\nUnderstanding your credit score is vital if you are going to apply for a home or car loan, personal loan, or a credit card. Credit scores are also used by landlords, car insurance companies, utility companies, and cell phone companies. The lower your score, the more you are going to pay in interest, insurance rate, or deposit, if you can even get approved in the first place.\nThere are numerous ways to get your credit score, along with your credit report. But it won't help to know your score unless you also know how it was calculated and how you can increase it.\nOur credit score FAQs page is a great place to start for the basics. For more detailed coverage, delve into the articles below.\nCredit Score Basics\n-------------------\nHow Credit Scoring Works — Most Americans have no idea what goes into a credit score and what types of scoring models are used when applying for a loan. This article breaks it down into easy to understand concepts so you can get a general overview of credit scores.\nCredit Score Truths — If you are fixing your credit, doing it right depends on clearing up misconceptions about your credit score. What you don't know could hurt you.\nHow Credit Scores Are Used by Lenders — Why do lenders see different scores than you do? How many scores are there? And which ones do you need to track? Find out.\nWhy Do Credit Scores Fluctuate — You may have a different credit score with each of the major credit reporting agencies. Find out why and which score matters most.\nHow a Low Credit Score Can Cost You Money — A low credit score means higher interest rates, costing you more money in the long run. Get the facts.\nCredit Score Dating — There is nothing wrong with wanting to know a potential partner's credit score, but is it really okay to ask for a credit score on the first date?\nHow Your Credit Score Compares to Other Americans — Compared to other U.S. consumers, maybe your credit score isn't as bad as you think.\nHow to Get Your Credit Score\n----------------------------\nBest Places to Get Your Credit Scores (and Reports) — You need to know your credit score before you start your credit repair efforts, and after. Check out this listing of recommended sources, not only for your credit score, but also for your credit report.\nHow Credit Monitoring Services Work — Signing up for a credit monitoring service can be an easy and convenient way to keep an eye on your credit score and report. But is it really necessary? Weigh the pros and cons.\nCFPB's Free Credit Score Initiative — The Consumer Financial Protection Bureau encourages credit card companies to give consumers a free monthly credit score with their credit card statements. Get the facts about this inititative.\nFree Credit Score with Financial Reform Bill — The passing of HR 4173 in July of 2010 brought many benefits to consumers in the way of financial protection and oversite. See how this bill helps you.\nHow Your Credit Score Is Calculated\n-----------------------------------\nWhat Goes Into Your Credit Score — Coming up with that magical three-digit number is a highly guarded secret by the big three credit bureaus. Here's what we _do_ know about the five categories that make up your credit score.\nWhat Affects Your Credit Score — There are plenty of things that can make your credit score better, and plenty of things that can make it worse. Find out which is which.\nWhat Does _Not_ Affect Your Score — Some actions that you think affect your credit score might be based on myth. Before you start repairing your credit, get your facts straight.\nSurprising Things That Affect Your Credit Score — Sometimes the littlest things have the biggest impact. Your credit score is no exception. Get the facts.\nHow to Figure Out Your Credit Utilization Ratio — Learn how to figure out your credit utilization ratio. This is a very important part of your FICO Score. \nHow Credit Inquiries Affect Your Credit Score — Ever wonder what those credit inquiries are on your credit report and if they affect your credit score? Some do and some don't — learn the difference.\nHow One Late Payment Impacts Credit Score — Before you pay your credit card late, find out just how much damage just one late payment can do to your credit score.\nHow Rent-to-Own Can Impact Your Credit Score — If you are thinking of using a rent-to-own store to get new furniture, think again. Timely payments won't help your credit score and high interest fees will hurt your bank account.\nHow a Mortgage Can Impact Your Credit Score — If you qualify for a home loan, be careful. If you overextend yourself, then pay late or default, your credit score will take a beating.\nHow to Increase Your Credit Score\n---------------------------------\nWays to Increase Your Credit Score — Knowing your credit score only makes a difference if you also know how to _improve_ it for better deal on loans, insurance rates, and more.\nHabits to Follow for a Great Credit Score — Learn the habits of people who have great credit scores so you can make these habits your own.\nHow to Get an 800 Credit Score — Only a small percentage of consumers have a credit score of 800 or higher. Would you like to join this club? Find out how you can increase your score to over 800.\nHow to Get the Right Credit Mix — Having a good credit score is more than just removing negative items. It also requires a good mix of different types of credit.\nHow to Increase Your Score Before Getting a Mortgage Loan — Get tips on increasing your credit score if you are planning on buying a home in the next 12 months. Start early and clean up your credit before you apply for a mortgage loan.\nHow Rapid Rescore Works — Learn how mortgage brokers use rapid rescore to quickly increase credit scores to close loans for their customers. Will this help you when buying your next home?\nHow to Minimize the Impact of a Short Sale on Your Score — Maybe you have no choice but to go through a short sale but, at the very least, minimize the damage to your credit score.\nHow to Build Up Your Business Credit Score — If you own a business, it is a good idea to check your business credit reports and your business credit score. Learn the advantages to building up this credit score and how to do it.\nCredit Scoring Models — FICO, VantageScore, and Other Scoring Models\n--------------------------------------------------------------------\n### FICO & VantageScore\nWhy FICO Score Reigns Supreme — When we think about our credit score, for most of us, it's the FICO Score that first comes to mind. And with good reason. Learn why this score is the one most lenders use to determine creditworthiness.\nVantageScore; The Basics — This scoring model was developed to compete with FICO. It's not used by lenders as often as FICO, but your VantageScore is used by some lenders and can be a good tool for gauging your overall credit health.\nFICO vs VantageScore — Learn the pros and cons of FICO vs VantageScore credit scoring models. Which one is better? It depends on you.\nFICO 9 Release — Get the facts about the latest FICO score update and how it may increase your credit score.\nFICO Score XD - Are you credit invisible? FICO Score XD generates credit scores for consumers whose credit is too thin or old to generate a traditional FICO Score.\nChanges to FICO Score — See the history of changes to Fair Isaac's credit scoring model over the years, including details on FICO 8 (the most widely used FICO Score).\n### Other Scoring Models\nThe Truth About Alternative Credit Scores — Get the facts about who generates alternative scores, how they're calculated, and the pros and cons of using them.\nCreditVision Link Scoring Model — Like FICO Score XD, TransUnion's CreditVision scoring model generates scores for those whose credit history is too thin or old to generate a traditional credit score.\nUnderstanding Your Insurance Score — Your insurance credit score can determine your insurance rates and detect possible insurance fraud.\nBad Credit Scores May Increase Insurance Costs — Unfortunately, having a poor credit score not only affects getting a loan, but may also cause you to pay more for insurance. See how the insurance industry is using credit scores to determine premiums.\nSecret Credit Scores Used by Lenders — Have you ever heard of a revenue score, behavior scoring, or collection score? These are just a few of the secret scoring models lenders use to determine if you are a desirable risk.\nHow Social Media Credit Scoring Works — This relatively new method of credit scoring seems to be picking up steam. See the pros and cons of this scoring method.\nNew Credit Scoring Models — Lenders use more than just your FICO Score or VantageScore to determine your creditworthiness. Get the facts about other scoring models.\nThe Growth of Credit Score Alternatives — Though FICO Score is still preferred among most lenders, many are starting to use other ways to determine credit worthiness. Are these methods really taking off?\nCredit Scoring Conference — Contributing editor, Kristy Welsh, attending the Credit Scoring Conference in Washington D.C.  Read her story. END
 TITLE: Compare Credit Cards, Debit, Prepaid Cards, Secured Credit Cards CONTENT: Info on Credit Cards — Secured Card, Debit Card, Managing Your Cards \n---------------------------------------------------------------------\n###### Written by: Kristy Welsh\nFinding the right credit card to match your financial situation and spending habits can be time consuming and sometimes down right impossible. There are so many credit card offers out there and the only way you might hear about any of them is when you get a credit card offer in the mail. But is that offer really good for you financially? If you have poor credit, can you even qualify for this card? Well, we have links to credit card offers below. Pick the one you are interested in, and click on the link.\nChoosing the Right Credit Card For You \n---------------------------------------\nHow to Pick the Right Type of Credit Card for You — With so many credit card offers out there, how do you know which card is best for you? We have some basic questions you need to ask yourself prior to signing up for the next card offer that comes to you in the mail.\nHow to Find a Good Credit Card — If you have good credit or bad credit, chances are you recently received a credit card offer in the mail. How do you know if this is good deal or one you should stay away from - we have tips you need to look for before you send that application back.\nHow to Find a Credit Card if You Have Bad Credit — Having a low credit score can make it difficult to find a credit card. Fear not - we have some tips for you so you can apply for a credit card with bad credit.\nHow to Find a Credit Card if You Have Good Credit — Sometimes it is not that easy finding a decent credit card offer if you have good credit. Here are places to look so you can find a good credit card to use if you have a good credit score.\nDifferent Types of Credit Cards Available\n-----------------------------------------\nLow Interest Credit Cards — Generally, to qualify for a low-interest credit card, you have to have good to excellent credit. But, before you fill out that application, make sure you read all the fine print. We'll show you what to look for.\nDepartment Score Credit Cards — Department store credit cards are easy to get but are they right for you? We have the pros and cons of applying for and using a department store card.\nWhat is a Prepaid Card? — If you are looking to establish credit, a prepaid card is the perfect card for you. Not sure what they are - read our article on what to look for in a prepaid card.\nBest Cash Back Credit Card — Tempted by cash back offers? You are not alone. Find out how to chose and use a cash back credit card.\nSecured Credit Cards Can Help Rebuild Credit — Using a secured credit card is the best way to start establishing good credit if you recently filed for bankruptcy or if you have a low credit score. They are easy to use and easy to get - read how.\nBest Credit Cards for Big Spenders — These top 10 cards offer the best rewards and most cash back for those who use their credit cards a lot each month.\nHow to Maximize Rewards and Frequent Flyer Points — Chances are you have a rewards credit card in your wallet. Read our eight tips on how to maximize your reward points.\nCredit Card Rebate and Reward Programs. Deal or a Rip-Off? — Most consumers will say credit card rewards are the second-most important reason for choosing a specific card. But, is that rewards card a good deal or it is ripping you off?\nUsing Credit Cards on Vacation or for Emergencies\n-------------------------------------------------\nUsing a Debit Card Safely in a Foreign Country — If you are planning to travel overseas, make sure you know how your debit card will work in a foreign country. This will prevent unnecessary fees and charges and possibly not being able to use it at all.\nTips on Credit Card Safety During Vacation and Travel — Whether you travel domestically or aboard, it is important you take these precautions when traveling with your credit cards.\nCredit Card Use Before and After a Disaster — You never know when a disaster or an emergency will strike, so it is important you are prepared. We have some tips to get your credit cards ready to use in such an emergency.\nGeneral Information About Credit Cards\n--------------------------------------\nFAQs Regarding Credit Cards — We have received hundreds of questions about credit cards. This article answers the most popular questions we have received over the years.\nEverything You Need to Know About Credit Cards — This article breaks down the different types of credit cards available so you can decide which kind of card is best for your spending habits.\nOur Guide to Understanding Credit Card Fees — Make sure you understand all the fees associated with the type of credit card you plan to use or apply for.\nPros and Cons of a Credit Card Cash Advance - What if you need cash in a pinch and you need more money than you currently have in your checking or savings account? This is when a cash advance may come in handy but you need to know the pros and cons of using a credit card cash advance.\nTimes When You Absolutely Need a Credit Card — You may run into instances when you absolutely need to use a credit card - for say, renting a car or getting a hotel room. See other times where you will need to use your plastic.\nCredit Card Company Tricks of the Trade — See what gimmicks and tricks the credit card companies are playing to try to get you to apply for their cards. Some are not as good as they sound.\nPrepaid Cards Can Teach Teenagers About Money — Getting your child a prepaid card is a great way to teach them about money and how to become financially independent. Watch out for excessive fees when choosing a prepaid card.\nWhy Millennials Love to Use Prepaid Debit Cards — More and more young adults, or Millennials, are using prepaid debit cards instead of the traditional unsecured credit cards. Find out why these cards are way more enticing to these consumers.\nCredit Card Fraud and Credit Card Theft Prevention\n--------------------------------------------------\nChargeback Provides Protection From Fraudulent Charges — Credit cards provide protection against fraudulent charges in the form of a chargeback. Read this article to learn what this is and how to use it.\nNew Era of Credit Cards Containing RFID and EMV Chips — Just about all U.S. credit cards contain an RFID and a EMV chip. What is this new technology and how will it help with credit card fraud and ID theft prevention?\nMaking Safe Purchases with Credit Cards — We receive a lot of questions regarding making purchases with credit cards. This article answers the most common questions we have received over the years.\nHow to Avoid Credit Card Fraud — Don't think credit card fraud will happen to you, think again. Millions are victims each year but we can show you how to avoid becoming another statistic.\nHow to Prevent the Credit Bureaus From Selling Your Name to Mailing Lists — Isn't it annoying to get all that junk mail from companies trying to get you to apply for their credit cards? Learn how to get off of their mailing lists.\nTips for Managing Your Credit Cards\n-----------------------------------\nHow to Stop Automatic Payments — Signing up for an automatic withdraw to pay a monthly bill may seem like a good idea at first, but what can you do if you want to stop these payments.\nHow to Raise Your Credit Card Limit — A low credit limit can restrict the types of purchases you can make with your credit card. Here's how to ask for a credit limit increase.\nHow to Lower Your Interest Rate — Are you paying too much in interest every month on your credit cards? We will show you how to ask for a lower rate and get it.\nHow Credit Card Interest Rates are Calculated — Every credit card comes with an annual percent rate but how does that break down to daily or even monthly - find out how to calculate it.\nConsider a Balance Transfer to Lower Your Interest Rate — Transferring a balance from one credit card to another can reap many benefits.  Just make sure to understand what the new card is going to offer you in the way of savings.\nHow Many Credit Cards Should You Have? — If you are thinking about applying for a new credit card, be careful about how many cards you have as this will affect your credit.\nWhy College Students Mis-Manage Credit Cards — College students as a whole are illiterate when it comes to credit card use. Mis-managing their credit cards by being ignorant of interest rates, late payment fees, and overbalance penalties.\nCredit Card Reform\n------------------\nIs Credit Card Reform Working? — Since the passing of the Credit Card Act of 2009, are credit card holders really better off now or is everything still status quo.\nCredit Card Complaints Can Now Be Found On-Line — The Consumer Financial Protection Bureau launched an on-line database so consumers can search for complaints against credit card companies.\nHow Checkout Fees on Credit Card Payments Affect You — As of January 2013, merchants are able to charge a checkout fee when you use your Visa or MasterCard to make a purchase. Learn what this fees is and which merchants are passing this on to their customers.\nThe Changing Tide in Merchant Fees — Banks now charging fees to use debit cards will cost merchants more which will then be passed on to us consumers. Are these fees really necessary\nPredicting the Future of the Credit Card Industry — Credit card issuers are planning for new products and offers by targeting their customers spending habits and needs. See what new products might be coming from the credit card industry.\nCredit Card Industry Legal Issues\n---------------------------------\nHow and Why Fingertip Signatures Work — Learn what a fingertip signature is and if these are a legal way to process a credit card payment.\nQuestionable Credit Card Practices — Read this article to see what some credit card companies are doing to unsuspecting consumers.\nBilling Errors and Overcharges — You can encounter billing errors, merchants who charge you incorrectly, someone stealing your information and using it fraudulently. This article will show you how to handle these types of issues.\nCredit Card Arbitration — Fair or Foul? — If you have a dispute with a credit card company, you will have to go through mandatory arbitration. Is this process really fair for the average consumer?\nAre You Able To Sue Your Credit Card Company — We talked about arbitration in a previous article, but this clause can keep you from suing your credit card company directly. See what is being changed so that consumers have their day in court.\nThe Ins and Outs of Credit Card Insurance — Credit card companies are always pushing their payment protection insurance plans on us, are they really worth the extra money every month? We will give you the pros and cons of this insurance. END
 TITLE: Credit Bureau FAQs - Credit Info Center CONTENT: Credit Bureau Frequently Asked Questions\n----------------------------------------\n###### Written by: Kristy Welsh\nWith all that credit bureaus know about us, it can be an unsettling feeling when we know very little about them. How do they get their information? How often does this information change? How do they know if it’s accurate? What do they do if there’s a mistake? How are credit bureaus regulated? Below are answers to these and other commonly asked questions about how credit bureaus work.\nAbout Credit Bureaus\n--------------------\n*   What are credit bureaus?\n*   What do credit bureaus do?\n*   Why are credit reporting agencies important?\n*   How many credit bureaus are there?\n*   Why are there three credit bureaus?\n*   Which of the 3 credit bureaus is most important?\n*   Which of the 3 credit bureaus is most accurate?\n*   Which credit reporting agency should I use?\n*   Are credit bureaus government agencies?\n*   Who regulates credit bureaus?\n*   Are credit bureaus non-profit?\n*   How do credit bureaus make money?\n*   Are credit bureaus open on weekends?\nHow Credit Bureaus Update\n-------------------------\n*   How do credit reporting agencies get information?\n*   When do credit bureaus update?\n*   When do credit bureaus update your score?\n*   How do credit bureaus investigate disputes?\n**Credit Bureaus Used by Lenders**\n----------------------------------\n*   Which credit bureau do banks use?\n*   What credit reporting agency does Chase use?\n*   What credit reporting agency does Discover use?\n*   What credit reporting agency does American Express use?\n*   What credit reporting agency does CitiBank use?\n*   What credit reporting agency does Wells Fargo use?\n*   What credit reporting agency does Bank of America use?\n*   What credit reporting agency does Walmart use?\n### What are credit bureaus?\nCredit bureaus – also known as credit reporting agencies – are companies that collect information about your credit history. They use this information to generate credit reports and credit scores. Both of these credit rating tools can be accessed by you, as well as anyone with permissible purpose who’s considering you for a loan or service requiring a credit check. Back to Top\n### What do credit bureaus do?\nCredit bureaus:\n*   Collect information about your credit history\n*   Compile information into credit reports\n*   Use credit reports to generate credit scores\n*   Provide access to credit reports and scores (to you and lenders)\n*   Help creditors prescreen consumers for credit card offers\n*   Investigate consumer disputes\n*   Place fraud alerts on credit reports\n*   Freeze credit reports\n*   Offer credit monitoring and identity theft protection\n### Why are credit reporting agencies important?\nThe only way lenders know whether you’re a good credit risk or not depends on your credit history. And that history is documented by the credit reporting agencies. It’s this documentation and rating system – in the form of credit reports and scores – that gives lenders the knowledge they need to make sound lending decisions. Back to Top\n### How many credit bureaus are there?\nWhile there are numerous consumer reporting agencies, there are only three major credit bureaus. And though there is good reason to check your reports from other consumer reporting agencies, it’s the big three that matter most – TransUnion, Experian, and Equifax. You never know which credit bureau potential lenders will use, so it’s important to monitor all three. Back to Top\n### Why are there three credit bureaus?\nThe origins of credit reporting date back to the nineteenth century when businesses started sharing whether customers paid their debts or not. Companies tasked with compiling this information have grown and consolidated over the years, a process by which three credit bureaus came out on top – TransUnion, Experian, and Equifax. Learn more about their history. Back to Top\n### Which of the 3 credit bureaus is most important?\nThe most important credit bureau is the one a lender or company uses when considering you for credit or for a service requiring a credit check (e.g., cell phone service, car rental). But since you never know which credit bureau is going to be used, that means all three bureaus – TransUnion, Experian, and Equifax – are equally important. Back to Top\n### Which of the 3 credit bureaus is most accurate?\nIt depends, as data furnishers can report credit history to their choice of credit bureau(s). If a creditor only reports to TransUnion, your good (or bad) credit history with that creditor will only be reflected in your TransUnion report. The same is true if the creditor reports something in error. Only the TransUnion report would reflect the inaccuracy. Back to Top\n### **Which credit reporting agency should I use?**\nYou should use all three. This means regular monitoring of your credit with TransUnion, Experian, and Equifax. You can see all three of your credit reports for free through AnnualCreditReport.com every 12 months. You can also sign up with free credit monitoring sites to keep an eye on your credit reports (and scores) all year long. Back to Top\n### Are credit bureaus government agencies?\nNo, credit bureaus are not government agencies. They are private, for-profit companies. However, credit bureaus are subject to government regulation. The Fair Credit Reporting Act outlines what credit bureaus can (and cannot) do regarding:\n*   What’s included in credit reports\n*   How long certain listings stay on credit reports\n*   Access to credit reports and scores Investigations of credit disputes\n### **Who regulates credit bureaus?**\nCredit bureaus are regulated by the Federal Trade Commission. The Dodd-Frank Wall Street Reform and Consumer Protection Act also gave regulatory authority to the Consumer Financial Protection Bureau. Credit bureaus are subject to the rules of the Fair Credit Reporting Act. The big three are also members of the Consumer Data Industry Association, which establishes credit reporting standards. Back to Top\n### Are credit bureaus non-profit?\nNo, credit bureaus are not non-profit organizations that monitor credit as a public service. Yes, it’s an important service, but it’s a private one. TransUnion, Experian and Equifax are for-profit companies. Not only do they charge lenders – and other companies with permissible purpose – who want to check your credit. They also charge you for access to your credit. Back to Top\n### How do credit bureaus make money?\nCredit bureaus charge fees to lenders and other companies that want to check your credit. They also charge consumers for subscription-based credit monitoring for consumers. TransUnion charges consumers $9.95 a month. Experian charges $21.95 a month. And Equifax charges $19.95 a month. But there are other (free) ways to see your credit reports and scores. Back to Top\n### **Are credit bureaus open on weekends?**\nNo, the credit bureaus do not keep weekend hours. You can contact the bureaus by phone on the following days and times: TransUnion Monday through Friday, 8 am to 11 pm (EST); Experian Monday through Friday, 7 am to 7 pm (CST); and Equifax Monday through Friday (times not provided). Note, submit credit disputes via regular mail. Back to Top\n### **How do credit reporting agencies get information?**\nLenders and other data furnishers report details of your accounts to credit bureaus. Some report to bureaus whether payment history is good or bad (e.g., credit card issuers, auto lenders, mortgage lenders). And some accounts only show up on credit reports if they go into collections (e.g., utility accounts, cell phone accounts, medical accounts). Back to Top\n### **When do credit bureaus update?**\nCredit bureaus update account details often as they receive new information from data furnishers. It happens monthly, but specific dates vary from one data furnisher to the next. Experian says some things get updated immediately, like credit inquiries. And others take time, like public records, which may not appear on reports for a week, a month, or more. Back to Top\n### **When do credit bureaus update your score?**\nCredit scores are determined by what’s on credit reports. And since credit reports can be updated any day of the month, credit scores can update just as frequently. As explained by Equifax, your credit score is \"calculated based on the most recent up-to-date credit information available, so it could change every day as \\[data furnishers\\] report new data.\" Back to Top\n### **How do credit bureaus investigate disputes?**\nAfter receiving a credit dispute letter from you, the credit bureau forwards your dispute – and supporting documentation – to the data furnisher who provided the information in question. If the data furnisher is unable to verify the accuracy of the disputed item, the credit bureau will correct it. See how TransUnion, Experian, and Equifax describe details of their dispute process. Back to Top\n### **Which credit bureau do banks use?**\nIf you’re applying to a bank for a loan, they could use any one of the three bureaus to check your credit. If you want to know which one they’ll use, simply ask. If you’re opening a checking or savings account, the bank may use a consumer reporting agency that tracks your previous banking history, such as ChexSystems. Back to Top\n### **What credit reporting agency does Chase use?**\nAccording to the Credit Pulls Database, Chase seems to pull predominantly from Experian and TransUnion, but also from Equifax. You can use the Credit Pulls Database to search for recent credit pulls by Chase in your state. Just keep in mind this list is not exhaustive, as it only includes pulls shared by database contributors. Back to Top\n### **What credit reporting agency does Discover use?**\nAccording to the Credit Pulls Database, Discover seems to pull mostly from Experian and Equifax, but occasionally from TransUnion. You can use the Credit Pulls Database to search for recent credit pulls by Discover in your state. Just keep in mind this list is not exhaustive, as it only includes pulls shared by database contributors. Back to Top\n### **What credit reporting agency does American Express use?**\nAccording to the Credit Pulls Database, American Express seems to pull exclusively from Experian. You can use the Credit Pulls Database to search for recent credit pulls by American Express in your state. Just keep in mind that this list is not an exhaustive one, as it only includes pulls shared by database contributors. Back to Top\n### **What credit reporting agency does CitiBank use?**\nAccording to the Credit Pulls Database, Citibank seems to pull predominantly from Experian and Equifax. You can use the Credit Pulls Database to search for recent credit pulls by Citibank in your state. Just keep in mind that this list is not an exhaustive one, as it only includes pulls shared by database contributors. Back to Top\n### **What credit reporting agency does Wells Fargo use?**\nAccording to the Credit Pulls Database, Wells Fargo seems to pull mostly from Experian and TransUnion, but occasionally from Equifax. You can use the Credit Pulls Database to search for recent credit pulls by Wells Fargo in your state. Just keep in mind this list is not exhaustive, as it only includes pulls shared by database contributors. Back to Top\n### **What credit reporting agency does Bank of America use?**\nAccording to the Credit Pulls Database, Bank of America seems to pull predominantly from Experian and TransUnion, but occasionally from Equifax. You can use the database to search for recent credit pulls by Bank of America in your state. Just keep in mind this list is not exhaustive, as it only includes pulls shared by database contributors. Back to Top\n### **What credit reporting agency does Walmart use?**\nAccording to the Credit Pulls Database, Walmart seems to pull mostly from TransUnion, but occasionally from Experian. You can use the Credit Pulls Database to search for recent credit pulls by Walmart in your state. Just keep in mind this list is not an exhaustive one, as it only includes pulls shared by database contributors. Didn’t find the answer to your question here? Ask in our free, friendly forum on credit bureaus, reports, and scores. Back to Top END
 TITLE: Credit Reports Frequently Asked Questions CONTENT: ###### Written by: Kristy Welsh\nAlmost everything that affects your credit is listed in your credit reports. So, the more you know about how they work, the better. When are credit reports updated? Which ones do lenders use? Which ones do _you_ need to see? And how many ways can you see them for free? Below are answers to these and other commonly asked questions on the ins and outs of credit reports.\nAbout Credit Reports\n--------------------\n*   How are credit reports created?\n*   Who creates credit reports?\n*   When do credit reports update?\n*   How many credit reports are there?\n*   How many credit reports have errors?\n*   Are credit reports international?\n*   When did credit reports start?\nChecking Your Credit Reports\n----------------------------\n*   Are credit reports free?\n*   How many credit reports should I get?\n*   Which credit reports should I check?\n*   Which credit report is better?\n*   Which credit report is used most?\n**Credit Reports Used by Lenders**\n----------------------------------\n*   Which credit report do lenders use?\n*   What credit report is used for mortgages?\n*   What credit report is used for car loans?\n*   What credit report do landlords look at?\n*   What credit report does Wells Fargo pull?\n*   What credit report does AmEx pull?\n*   What credit report does Discover pull?\n*   What credit report does Citi pull?\n*   What credit report does Capital One pull?\n*   What credit report does Walmart pull?\n### How are credit reports created?\nCredit reports are created when you open your first line of credit by having the lender pull your credit history then reporting your payment history. They include personally-identifying information such as your name, address and employment history, as well as details specific to your new credit account. From that point forward, your credit history will be recorded in your credit reports, including:\n*   Credit accounts\n*   Credit limits\n*   Balances\n*   Payment history\n*   Collections and other negative listings (e.g., charge-offs, judgments, liens)\n Back to Top\n### Who creates credit reports?\nThe big three national credit bureaus — TransUnion, Experian, and Equifax — create credit reports. They’re the ones that data furnishers (e.g., credit card issues, auto lenders, mortgage lenders) report information to, be it positive or negative. The credit bureaus are also responsible for investigating credit disputes should you find inaccurate information in your credit reports. Back to Top\n### When do credit reports update?\nData furnishers send new info to the credit bureaus approximately once a month. That said, they don’t all do it on the same _day_ of the month. And instead of waiting for all the new data to come in – doing one big update on one day of the month – the credit bureaus update reports **_as new information is received_**. Back to Top\n### How many credit reports are there?\nThere are three major credit reports, each compiled by one of the big three national credit bureaus. All three reports have the same _type_ of information, but not necessarily the same listings. Data furnishers are not required to report to all three bureaus. So, never assume that what’s on one credit report will be on the other two. Back to Top\n### How many credit reports have errors?\nA 2012 study issued by the FTC found that 1 in 5 consumers had an error on their credit reports that was corrected after filing a credit dispute. But how many more errors are on reports that consumers either don’t know about or don’t bother disputing? The takeaway? Look for and dispute credit report errors. Back to Top\n### **Are credit reports international?**\nThough credit reports are used internationally, the credit reports you have in the United States are not the same credit reports that would be used if you moved to, and applied for credit, in another country. There you would be subject to that country’s credit reporting system, meaning you would basically be starting from scratch. Back to Top\n### When did credit reports start?\nIn _Time_'s \"The Long, Twisted History of Your Credit Score,\" author Sean Trainor writes, \"By the end of the Civil War, the three pillars of modern credit reporting were in place: private-sector mass surveillance that made credit reports possible, bureaucratic information-sharing that made them widely available and a rating system that made them actionable.\" Back to Top\n### **Are credit reports free?**\nYes, credit reports are free every 12 months through AnnualCreditReport.com, and all year long through free credit monitoring sites. You can also request free reports when:\n*   You want to verify a change was made to a disputed listing\n*   You are turned down for credit\n*   You have reason to believe a credit report is inaccurate due to fraud\nBack to Top\n### How many credit reports should I get?\nWhen you use AnnualCreditReport.com to request free access to credit reports, request all three. Check all three at once if:\n*   It’s been a long time since you’ve checked your credit\n*   You’re working on credit repair\n*   You’re getting ready to apply for financing\nOtherwise, consider staggering them every 4 months. And either way, supplement with free credit monitoring sites.\nBack to Top\n### Which credit reports should I check?\nIf you’re applying for financing – and you know with certainty which credit bureau a lender uses — you could limit your check to that one report. If you don’t know which bureau they use, check all three. Beyond that, request all three reports once a year (for free) through AnnualCreditReport.com and consider free credit monitoring sites all year long. Back to Top\n### **Which credit report is better?**\nThe big three credit reports are of equal value. But you might consider one “better” if it’s the one a lender uses to consider you for credit. That would be the better credit report to check before applying. A credit report might also be considered “better” if its information is more positive or accurate than the other two. Back to Top\n### **Which credit report is used most?**\nThe big three credit bureaus aren’t the only consumer reporting agencies. There are dozens of them, most specializing in specific aspects of consumer reporting (e.g., tenant screening, employment screening, utilities, retail). But of them all, the credit reports from TransUnion, Experian, and Equifax are used most. What’s not clear is which of the big three gets used most. Back to Top\n### **Which credit report do lenders use?**\nAny one of the big three credit reports could be used by lenders. If you want to know which credit report a specific lender will use, you can try asking. Though not exhaustive, you can also use the Credit Pulls Database. Otherwise, assume any one of your three credit reports could be used — from TransUnion, Experian, or Equifax. Back to Top\n### **What credit report is used for mortgages?**\nMost mortgage lenders use all three of your credit reports. And each bureau uses a different FICO Score version when calculating scores based on these reports:\n*   TransUnion FICO Score 4\n*   Experian FICO Score 2\n*   Equifax FICO Score 5\nPlus, what’s on one credit report may not be on the others, further influencing varied FICO scores.\nBack to Top\n### **What credit report is used for car loans?**\nAn auto lender could use any one of the big three credit reports – from TransUnion, Experian, or Equifax – when considering you for financing. All three credit bureaus offer FICO Score 8 when calculating scores based on these reports. But they also offer older FICO versions:\n*   TransUnion FICO Score 4\n*   Experian FICO Score 2\n*   Equifax FICO Score 5\nBack to Top\n### **What credit report do landlords look at?**\nThere are several consumer reporting agencies that provide tenant screening for landlords:\n*   TransUnion Rental Screening Solutions, Inc\n*   Experian RentBureau\n*   Equifax Identity Report\n*   Contemporary Information Corp.\n*   CoreLogic SafeRent\n*   First Advantage Corporation Resident History Report\n*   LeasingDesk (Real Page)\n*   Screening Reports, Inc.\n*   Tenant Data Services\nBack to Top\n### **What credit report does Wells Fargo pull?**\nIf we go by the [Credit Pulls Database](about:blank), it looks like Wells Fargo pulls mostly from Experian. For more specific results relative to where you live, search the database for Wells Fargo credit pulls in your state. Note, results are not representative of all credit pulls, only consumers who contributed to the database. Back to Top\n### **What credit report does AmEx pull?**\nIf we go by the Credit Pulls Database, it looks like American Express pulls from both Experian and Equifax. Search the database for American Express credit pulls in your state. Though you can expect Experian to turn up every time, the database includes other helpful details. Note, results aren’t representative of every credit pull, but the experiences of database contributors. Back to Top\n### **What credit report does Discover pull?**\nIf we go by the Credit Pulls Database, it looks like Discover pulls mostly from Equifax for hard inquiries, but uses the other two about half the time. For more specific results relative to where you live, search the database for Discover credit pulls in your state. Note, results are not representative of all credit pulls, only those of consumers who contributed to the database. Back to Top\n### **What credit report does Citi pull?**\nCitibank pulls mostly from Experian, but pulls from all three bureaus. For more specific results relative to where you live, you can [refer to this handy dandy chart](about:blank). Note, results are not representative of every credit pull, but experiences of consumers who have contributed to the database. Back to Top\n### **What Credit Report does Bank of America pull?**\nAccording to [this website](about:blank), Bank of American pulls from all three bureaus, but mostly uses Experian.  It depends on the state that you live in. Back to Top\n### **Which Credit Report does Chase pull?**\nDepending on your state, Chase pulls from all three bureaus, according to this [chart](about:blank). Back to Top\n### **What credit report does Capital One pull?**\nUnlike other credit card issuers, Capital One pulls from all three credit bureaus. That’s not to say they _could_ pull from any one of the three, but that they pull all three every time. If you look at the Credit Pulls Database, there’s one bureau listed in the CRA column, but the notes column specifies multiple credit pulls. Back to Top\n### **What credit report does Walmart pull?**\nAs of fall 2020, their co-branded card issuer is Capital One bank that pulls reports from all three bureaus.\nDidn’t find the answer to your question here? Ask in our free, friendly forum on credit bureaus, reports, and scores. Back to Top END
 TITLE: Credit Score FAQs - Credit Info Center CONTENT: Credit Score Frequently Asked Questions\n---------------------------------------\n###### Written by: Kristy Welsh\nAs though understanding credit isn’t confusing enough, navigating your way through credit scores can be downright maddening. What’s a good score, and what’s a bad one? How are they calculated? How are FICO Scores and VantageScores different? Which ones do lenders see? Which ones do _you_ need to see? Are they free and, if so, where can you find them? Below are answers to these and other commonly asked questions about credit scores.\nAbout Credit Scores\n-------------------\n*   Are credit scores free?\n*   Which credit score matters?\n*   Which credit score is most used?\n*   Who calculates credit scores?\n*   When do credit scores update?\n*   What credit scores are good and bad?\n*   Who checks credit scores?\n*   Are credit scores global?\nTypes of Credit Scores\n----------------------\n*   What is a VantageScore vs FICO?\n*   Who uses VantageScore?\n*   Who uses FICO Score?\n*   Where does FICO Score come from?\n*   Why does my FICO Score fluctuate?\n*   Why is my FICO Score lower than Experian?\n*   Why is my FICO Score lower than Equifax?\n**Checking Credit Scores**\n--------------------------\n*   Which credit score should I check?\n*   Where to get credit scores online?\n*   Are credit scores on Credit Karma accurate?\n*   Where is credit score on Experian report?\n*   Where is credit score on Equifax report?\nCredit Scores Used by Lenders\n-----------------------------\n*   Which credit score do lenders use?\n*   What credit scores are needed to buy a house?\n*   Which credit score do mortgage lenders use?\n*   Which credit score is used for auto loans?\n*   What FICO Score does Discover use?\n*   What FICO Score is needed for American Express?\n### Are credit scores free?\nUnlike credit reports, consumers are not automatically entitled to see credit scores for free every 12 months. You can, however, see them for free under the following circumstances:\n*   Free VantageScores through credit monitoring sites\n*   Free FICO Scores through Discover and some other credit card issuers\n*   Free access to score used to deny credit or give worse credit terms\nBack to Top\n### Which credit score matters?\nThe credit score that matters most is the one your next potential lender looks at. It might be your base FICO Score. It might be an industry-specific FICO score (e.g., for a credit card or auto loan). Or it might not be FICO at all, but VantageScore; it’s not used as often, but VantageScore does get checked. Back to Top\n### Which credit score is most used?\nThere’s no question as FICO Scores get used more than VantageScores. And, specifically, FICO Score 8 is used most. What’s not clear is which credit bureau is used most to _generate_ FICO Scores. That’s why it’s important to ensure accuracy of all three credit reports. One error on one report could mean a lower FICO Score from that bureau. Back to Top\n### Who calculates credit scores?\nCredit scores are calculated by the big three national credit bureaus—TransUnion, Experian, and Equifax. These calculations are determined by algorithms used to turn information in credit reports into three-digit numbers. But while you only have one credit report for each bureau, you have multiple credit scores generated by these reports, including VantageScores and FICO Scores. Back to Top\n### When do credit scores update?\nOn any given day of the month, a data furnisher could send new credit information to the credit bureaus. As soon as the credit bureau updates your credit report accordingly, expect that new information to be calculated into your credit score. This means there is no specific day when credit scores get updated; theoretically, they can update daily. Back to Top\n### What credit scores are good and bad?\nCredit scores range from 300 to 850. This applies to both FICO Scores and VantageScores. Every lender judges a credit score based on its own internal system, but generally the range of things looks like this:\n*   800-850 – Excellent credit\n*   740-799 – Very good credit\n*   670-739 – Good credit\n*   580 to 669 – Fair credit\n*   300-579 – Bad credit\nIndustry-specific FICO Scores range a little differently, from 250 to 900. Back to Top\n### Who checks credit scores?\nWhen you apply for credit—or for a service through certain types of companies—expect them to check your credit score. This includes:\n*   Banks\n*   Credit card issuers\n*   Mortgage lenders\n*   Auto lenders\n*   Landlords\n*   Car insurance companies\n*   Car rental companies\n*   Cell phone companies\n*   Utility companies\n*   Government agencies\nNote: Though some employers check credit reports, they do not see credit scores. Back to Top\n### Are credit scores global?\nThere is no global credit score that crosses international borders. That means the credit scores you have in the United States will not influence your ability to get credit should you move to another country. While starting over might sound good if you have bad credit, keep mind outstanding debt can prevent you from obtaining a visa. Back to Top\n### What is a VantageScore vs FICO?\nFICO is the original credit scoring system created by Fair, Isaac, and Company. VantageScore is an alternative credit scoring system created by the three national credit bureaus. Both use the same credit scoring range (300-850). What’s different is how FICO and VantageScore algorithms weight different categories of credit information to generate scores. Learn more about FICO vs VantageScore. Back to Top\n### Who uses VantageScore?\nThe importance of VantageScores is often minimized because they aren’t used as often as FICO. But over 11,000 lenders (and other industry participants) [used VantageScores](about:blank) as of June 2019. One reason lenders like VantageScore is because it scores consumers FICO won’t due to being too new to the credit market or using credit too infrequently. Back to Top\n### Who uses FICO Score?\nFICO Scores are used by 90 percent of top lenders, and this has not changed much since the Vantage Score was created. The most widely used is FICO Score 8. But other FICO Scores are used for industry-specific purposes. Credit card issuers look at FICO Bankcard Scores. Auto lenders look at FICO Auto Scores. And mortgage lenders look at older versions of your base FICO Score. Back to Top\n### Where does FICO Score come from?\nYour FICO Score was created by Fair, Isaac, and Company, now known as FICO. Founded in 1956, Fair Isaac built its first credit scoring system for American investments in 1958. Today, each of the big three credit bureaus generates base FICO Scores and industry-specific FICO Scores—scores based on information provided by data furnishers and compiled into credit reports. Back to Top\n### **Why does my FICO Score fluctuate?**\nYour FICO Score is based on information in your credit reports. As that information changes—which can happen multiple times a month—you can expect your FICO Score to change with it. So, it’s normal for your FICO Score to fluctuate. If you’re doing everything right but it dips a little, it will probably bounce right back. Back to Top\n### **Why is my FICO Score lower than Experian?**\nExperian uses a unique scoring system to generate an Experian Credit Score. And like the other two credit bureaus, Experian also generates a VantageScore. So, it’s probably one of those two scores that’s different from the FICO Score you’re seeing. (Though it should be noted Experian generates a FICO Score, too.) They’re different because they use different algorithms. Back to Top\n### **Why is my FICO Score lower than Equifax?**\nAll three credit bureaus generate FICO Scores. Unfortunately, it can be confusing because all three bureaus also generate VantageScores. So, if you’re seeing a FICO Score that’s different than your Equifax score, the Equifax score is probably a VantageScore. Even if they’re based on the same credit report, the scores will be different because the algorithms are different. Back to Top\n### **Which credit score should I check?**\nIf you want to finance a home or car, check your base FICO and industry-specific scores (which you’ll have to pay for). We recommend the [FICO Score Advanced Plan](about:blank). For year-round credit monitoring, free credit scores should do—VantageScores through [free credit monitoring sites](about:blank) and complimentary FICO Score through Discover (or your credit card issuer, if provided).  Back to Top\n### **Where to get credit scores online?**\nGet free VantageScores through:\n*   [Credit.com](about:blank)\n*   [CreditKarma](about:blank)\n*   [Credit Sesame](about:blank)\n*   [LendingTree](about:blank)\n*   [myBankrate](about:blank)\n*   [WalletHub](about:blank)\nGet a complimentary FICO Score through Discover.\nYou can also purchase credit scores through TransUnion, Experian, and Equifax. But if you’re going to pay for it, we recommend going through myFICO.com for the one-time [FICO Score 3-Bureau Report](about:blank) or [FICO Advantage](about:blank) plan for monthly access. Back to Top\n### **Are credit scores on Credit Karma accurate?**\nCredit scores on Credit Karma are VantageScores based on your TransUnion and Equifax credit reports. So, if information on those reports is accurate, the credit scores will be, too. Also, make sure you’re not judging the accuracy of a VantageScore by its comparison to a FICO Score. They’re based on different algorithms, so probably won’t be the same. Back to Top\n### **Where is credit score on Experian report?**\nCredit reports don’t include credit scores. However, you can see your Experian credit score (and report) through Credit.com, a free credit monitoring site. After signing up, go to your Credit Report Card. You’ll find your Experian Credit Score in the top left corner. Select “Other Scores” and you’ll see your VantageScore. (For Experian FICO Score, go to myFICO.com.) Back to Top\n### **Where is credit score on Equifax report?**\nAs is the case with all credit reports, your Equifax report won’t include a credit score. However, you can see your Equifax credit score (and report) through Credit Karma, a free credit monitoring site. After signing up, go to your Dashboard. You’ll see your Equifax VantageScore, as well as TransUnion VantageScore. (For Equifax FICO Score, go to myFICO.com.) Back to Top\n### **Which credit score do lenders use?**\nThere’s not one specific credit score used by lenders. They may use a FICO Score or VantageScore. And they can get these scores through any of the three credit bureaus. They can also use different score _versions_. To find out what a particular lender uses, try asking which credit score they pull. Back to Top\n### **What credit scores are needed to buy a house?**\nEvery lender has its own home loan criteria, including minimum credit scores. However, we do know that the [minimum FICO Score](about:blank#:~:text=Homebuyers%20must%20also%20meet%20minimum,mortgages%20(ARMs)%20is%20required.) required by Fannie Mae or Freddie Mac is 620, and the minimum for an FHA loan with only a 3.5% down payment is 580, if you put 10% down, your score can be in the range of 500-579. Keep in mind, though, that having at least the minimum credit score will not guarantee financing. Back to Top\n### **Which credit score do mortgage lenders use?**\nMost mortgage lenders use old FICO Score versions. Through TransUnion, it’s FICO Score 4, Equifax FICO Score 5, and Experian FICO Score 2. You should expect them to pull scores from two or three credit bureaus. As reported by Forbes, if they pull two scores, they’ll use the lowest one. If they pull three, they’ll use the middle. Back to Top\n### **Which credit score is used for auto loans?**\nExpect auto lenders to look at your base FICO Score, as well as industry-specific scores (i.e., FICO Auto Scores). Expect the base to be FICO Score 8, but the industry-specific scores will vary depending on which credit bureau they use:\n*   Transunion – Auto Scores 8 and 4\n*   Experian – Auto Scores 8 and 2\n*   Equifax – Auto Scores 8 and 5\nBack to Top\n### **What FICO Score does Discover use?**\nFor the base score, expect Discover (and other credit card issuers) to use FICO Score 8. But when it comes to industry-specific scores, it will depend on which credit bureau they pull from. If it’s:\n*   Experian – FICO Bankcard Score 8 and 2 (and FICO Score 3)\n*   Equifax – FICO Bankcard Score 8 and 5\n*   TransUnion – FICO Bankcard Score 8 and 4\n Back to Top\n### **What FICO Score is needed for American Express?**\nFor the base score, expect American Express (and other credit card issuers) to use FICO Score 8. When it comes to industry-specific scores, it depends on which credit bureau they pull from. According to the Credit Pulls Database, American Express seems to pull exclusively from Experian, in which case they’ll see FICO Bankcard Score 8 and 2 (and FICO Score 3).Back to Top\nDidn’t find the answer to your question here? Ask in our free, friendly forum on credit bureaus, reports, and scores. Back to Top END
 TITLE: Pay For Delete Can Remove Collections from Credit Report CONTENT: Pay for Delete — Method to Remove Collection From Credit Report\n---------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: _December 6, 2020__\nIf you are trying to clean up your credit and you have some extra cash, the pay for delete technique is the easiest way to remove collections from your credit report. This is best for collections under $500. Basically, you will agree to pay the entire amount owed and they agree to remove the collection from your credit report. Even if you are strapped for cash, most people can afford to pay $500 to a collection agency. If it's over $500, I still think this is an excellent technique. For debts over $500, I suggest paying a maximum of 25 percent of the total owed.\nTo give you some background, most bad debt companies pay or receive literally pennies on the dollar for the debts on which they are trying to collect. The amount that companies pay for bad debt depends on the type of account and its age.\nWith this in mind, you should always start your offer at 25 percent or less. Let's understand the math here. If your debt is $1,000, let's say at the most, the collection agencies has paid or will collect 7 cents on the dollar, or $70. If you offer them $250 (25 percent), they are still making a profit of $180. Remember, the credit card companies are out of the picture at this point. This money goes directly to the collection agencies.\nWhy Should You Pay The Debt?\n----------------------------\nGetting a collection off of your credit report can pay large dividends in an increased credit score. You can save hundreds or thousands of dollars in interest by getting cheaper loans or credit cards. If you can get a collection removed, it's worth the investment to pay.\nHow to Use the Pay for Delete Technique\n---------------------------------------\n1.  Find the address of the collection agency on your credit report.\n2.  Send a debt validation letter first, to see what kind of information they might have collected on the account. In many cases a collections firm or junk debt buyer will have no documentation on the account.\n3.  Based on your response you get to your debt validation request:\n    *   If you receive no response via the mail, it's time to give them a call and feel them out.  Calling a collections firm can feel very threatening and they may be downright nasty, rude or insulting. The most important information to get from them in this call is the agent's receptivity to an offer to do pay for delete. Even if they _sound_ non-receptive, it's worth proceeding further in this process, though. See if you can verbally work out an agreement on the phone. If you can get one, please don't agree to any payments over the phone until you get that agreement _in writing_.\n    *   If you receive documentation in the mail from them, ask yourself how much information they may have on you. If they sent you a computer printout, that is not proof of anything. Only really good documentation (like statements from the original creditor, copies of cancelled checks or a bill of sale from the original creditor) should affect the offer letter you are about to write.\n4.  Write the collection agency and offer to pay the amount in full (or at whatever amount you feel you can sell them on) in return for removing the collection account. Points to note in the letter:\n    *   If true, mention the fact that they have not given you any kind of documentation on the debt, validating it is yours or that they are legally entitled to collect the debt.\n    *   Tell them that you prefer just to pay this debt rather than taking them to court for reporting on your credit report when they have insufficient proof to do so.\n    *   Present your offer as a business deal and remind them of the handsome profit they are about to make on this deal by accepting your offer.\n5.  Remember that you are shooting for a complete deletion of the account from your credit report. Having the collection account marked as \"paid\" or \"settled\" is not going to help your credit rating.\n6.  Attach a settlement offer.\n7.  The company is under no legal obligation to respond to your offer for pay for delete. Wait at least 30 days to give them a chance to respond.\n8.  If you do not hear back from the collection agency or junk debt buyer, your only option is to call and ask about your offer. Don't stand for any abuse from them; hang up immediately if you feel attacked. Negotiate the agreement you want with the representative. If you don't get what you want, politely ask to speak to a supervisor.\n9.  Under no circumstances make payments until you receive a signed, written acceptance of your offer from the collection agency. The signed document should be from an authorized person who works at the firm, and be on collection agency letterhead.\n10.  Once you have a written, signed agreement, send the collection agency a money order or cashier's check for the amount you agreed to pay them. END
 TITLE: Pay For Delete Can Remove Collections from Credit Report CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Pay For Delete Can Remove Collections from Credit Report CONTENT:    |  |  |  | \n: . END
 TITLE: State by State Listing of Statute of Limitations on Debt CONTENT: ###### Written by: Kristy Welsh\nThe statute of limitations is a rule that sets a time limit within which a creditor may sue you for payment of a debt. The length of time that a creditor has to sue you on an unpaid debt varies from state to state. In some states it's four years, in other states it might be longer. The time limit may also depend on whether your agreement with the creditor is in writing or not, and whether the debt is a special type, like a revolving or open-ended account. To find out your state's SOL's, see our state by state listing below.\nIf the time limit to sue on the old debt has expired, that does not mean that a creditor or bill collector must stop contacting you about it. They can ask you to pay the debt; they are just not supposed to sue you for it.  If they do sue you for it, [it should be easy to get the lawsuit dismissed](about:blank).\nTypes of Legal Debt Agreements\n------------------------------\n**Written Contract:** You agree to pay on a loan under the terms written in a document that you and your debtor have signed.\n**Oral Contract:** You agree to pay money loaned to you by someone, but this contract or agreement is verbal (i.e., no written contract or handshake agreement). Remember a verbal contract is legal but it is tougher to prove in court.\n**Open-ended Accounts:** These are revolving lines of credit with varying balances. The best example is a credit card account. Note: A credit card is ALWAYS an open account. \nState by State Listing\n----------------------\nThis table for informational purposes only and should not be construed as legal advice. Although the material is deemed to be accurate and reliable, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is not without errors.\n**State**\n**Written**\n**Oral**\n **Open-ended Accounts**\n**Alabama**\n3\n6\n3 \n**Alaska**\n3\n6\n3\n**Arizona**\n6\n3\n3 \n**Arkansas**\n5\n3\n5 \n**California**\n4\n2\n4\n**Colorado**\n6\n6\n6\n**Connecticut**\n6\n3\n6\n**Delaware**\n3\n3\n3\n**D.C.**\n3\n3\n3\n**Florida**\n5\n4\n4\n**Georgia**\n6\n4\n4 or 6\n**Hawaii**\n6\n6\n6\n**Idaho**\n5\n4\n5\n**Illinois**\n10\n5\n5 or 10\n**Indiana**\n10\n6\n6\n**Iowa**\n10\n5\n10\n**Kansas**\n3\n3\n3\n**Kentucky**\n15\n5\n5 or 15\n**Louisiana**\n3\n10\n3\n**Maine**\n6\n6\n6\n**Maryland**\n3\n3\n3\n**Massachusetts**\n6\n6\n6\n**Michigan**\n6\n6\n6\n**Minnesota**\n6\n6\n6\n**Mississippi**\n3\n3\n3\n**Missouri**\n5\n5\n5\n**Montana**\n8\n5\n8\n**Nebraska**\n4\n4\n4\n**Nevada**\n4\n4\n4\n**New Hampshire**\n3\n3\n3\n**New Jersey**\n6\n6\n6\n**New Mexico**\n4\n4\n4\n**New York**\n6\n6\n6\n**North Carolina**\n3\n3\n3\n**North Dakota**\n6\n6\n6\n**Ohio**\n6\n6\n6\n**Oklahoma**\n5\n3\n3 or 5\n**Oregon**\n6\n6\n6\n**Pennsylvania**\n4\n4\n4\n**Rhode Island**\n10\n10\n10\n**South Carolina**\n10\n10\n3\n**South Dakota**\n6\n3\n6\n**Tennessee**\n6\n6\n6\n**Texas**\n4\n4\n4\n**Utah**\n6\n4\n4\n**Vermont**\n5\n3\n3\n**Virginia**\n6\n6\n6\n**Washington**\n6\n3\n6\n**West Virginia**\n10\n10\n10\n**Wisconsin**\n6\n6\n6\n**Wyoming**\n10\n8\n8\n### Should You Care About the Statute of Limitations on Debt?\nEvery day, consumers pay off collection accounts and charge-offs they do not have to pay off because the statute has already expired for the open account. Consumers pay off these accounts because the accounts still appear on their credit reports.\nThis information can be a powerful weapon in unburdening yourself of old debts, as creditors have a limited time in which to sue you. Remember, the time statute begins to run from the day the debt, or payment on an open-ended account, was due. Also, this has nothing to do with how long a negative credit item can remain on your credit report. Here is an article on \"How Long Negatives Stay on Your Credit Report.\"\nConsumers also pay off these accounts when they are not on their credit reports. Even though an account was removed from their credit file, a collector watched their credit report for any activity (actually the computer was watching any credit activity). When the collector spotted the activity, he called the consumer for payment. All the consumer needed to say to the collector was, \"I have an absolute defense since the statute of limitations has expired.\"\nThe expiration of the time statute does not cause your debt to go away after it expires. If the creditor files suit, the consumer has an absolute defense. The consumer must offer the new evidence to avoid a judgement. The evidence will consist of papers the consumer files to support his claim. If the creditor sues you, and you do not prove to the court that the statute of limitations expired, you will have a lost lawsuit and a judgment against you.\n### When Does the Statute of Limitations Clock Start Ticking?\nYou might be asking yourself, \"It has been such a long time since my account had any activity. When does the clock start ticking?\"\nThere are various opinions as to when the statute of limitations starts:\n*   The first time you fail to make a payment on your account.\n*   The credit card company sends you a demand letter for the full amount.\n**Either one can be true, depending on the credit card agreement and here is why:**\nThe length of the statute varies from state to state and depends on the type of agreement, i.e. oral, written, etc. The one aspect of a statute of limitations that is pretty constant throughout all of US states' laws is when it begins to run.\nA statute of limitations, or limitations of action statute, begins to run when a cause of action accrues. That means, the statute begins to run when you have done something contrary to the terms of your agreement for which you can be sued. Most of the time, that \"something\" is failure to pay your bill. When you don't make your payment on time, you have violated the terms of your agreement and you have given the creditor a cause of action.\nSome credit agreements include an acceleration clause which must be invoked before a creditor has a cause of action. The acceleration clause could be activated by the creditor sending you a demand for payment in full by a certain date. In these instances, you must fail to pay the creditor after it has invoked the acceleration clause before the creditor has a cause of action, and the SOL starts to run. You need to become familiar with the terms and conditions of your specific agreement to know for sure which event triggers a cause of action and thus, begins the running of the statute of limitations.\n### Calculating When the Statute of Limitations Has Expired\nIf you need to find out when the SOL on a debt has expired, do the following:\n1.  Take the date cause of action begins (date of last payment or demand letter):\n2.  Add the number of years of the statute of limitations in your state.\n**For Example:**\nYou last stopped paying on a credit card on January 15, 2018. The company sent you a demand letter for the full amount on July 15, 2018. The statute of limitations for credit cards (usually regarded as open accounts) in your state is 6 years.\nThe date at which you are \"safe\" from having a creditor sue you over this debt is:\n**No Acceleration Clause:**  January 15, 2018 + 6 years = January 15, 2024  \n**Acceleration Clause:**  July 15, 2018 + 6 years = July 15, 2024\n### Does a Partial Payment Restart the SOL?\nDepending on what state you live in, if you make a partial payment, you could be postponing the statute taking effect on your collection account or charge-off. A collector might call you one day and say you waived your rights when you made a deal with the collection agency. Do not take anything a collector tells you for granted. Make them prove it to you, in or out of court. For about half the population, the statute of limitations started ticking the day they made the last payment for their account.\nSome states have laws which specify that a partial payment does not restart the clock on the SOL, unless there is a new written promise to pay. What that means is that you actually write out a new agreement with the original creditor and\/or collection agency.\nPlease review the exact state statutes and the fine print associated with them before relying on this website's info. Your situation may not apply.\nEven though a debt is an absolute promise to pay, if the statute of limitations on the debt has expired and the creditor tries to force you to pay the debt, you have the right not to fulfill the promise (debt). END
 TITLE: Debt Settlement Techniques - How to Settle Debts on Your Own CONTENT: How to Settle Debts with Collection Agencies \n---------------------------------------------\n###### Written by: Kristy Welsh\nSettle Debts on Your Own with Our Debt Settlement Techniques\nSome people are skeptical, saying it is impossible to settle a debt that is being handled by a collection agency. We are here to tell you that you can settle an outstanding debt being handled by a collection agency by using our debt settlement strategies. This article addresses a debt which is with a _**collection agency**_. If you are trying to settle a debt with the _**original creditor**_, please read this debt settlement article.\nHow do you know if your debt is with the original creditor or with a collection agency? Simple — call the original creditor, i.e., the credit card company, and ask them. If your debt has been turned over to a collection agency, the original creditor is not going to deal with you. The original debt holder has collected its tax benefits under U.S. tax law for bad debts or sold it. Hence, they have \"cut the ties\" with the debt. You can also pull a copy of your credit reports to see who is reporting the debt.\n### Risks and Realities of Overdue Debts\n**Fact 1**  \nMany consumers are unaware of their risks with unpaid debts. Yes, it's true that a creditor could sue you in court and win a judgment, allowing the creditor to garnish your wages or seize bank accounts. However, the chances of this are **_pretty slim_**.\nIt's also true that collection agencies are turning to lawsuits more and more these days, but we would still tell you not to worry. Once you make the creditor aware that you know the law, they are more likely to leave you alone. With savvy consumers, many debt collectors think it is simply too much time, effort, and expense for them to take legal action against a debt.\nWe don't want to lie to you; the possibility of a lawsuit does exist. You might want to take comfort in this: if they do take you to court, often they have no case. There are a lot of players out there, like junk debt buyers, who buy and sell debts and place them into million dollar packages to sell on Wall Street.\n**Fact 2**  \nToo many consumers feel their debts are overwhelming and there is nothing they can do other than file bankruptcy. Consumers believe those awful tales spun by collection agencies of impending doom, especially about garnishment or seizure of property. Collection agents fail to mention that in order for these actions to take place, the creditor must first go to court.\nDue to lack of information, many consumers get panicky and turn to bankruptcy in these situations. **_Please don't do this!_**  Bankruptcy should not be used until after all options are exhausted, including the settlement procedures we are going to talk about here. In addition to getting out of your debts by settling, see our other alternatives to filing for bankruptcy.\n### Try Debt Validation\nThe best way to deal with a collection agency is the debt validation method. Don't bury your head in the sand when you first get a debt collection letter. If you send a debt validation request within 30 days of receiving that anxiety-provoking letter, debt validation offers important protections. This action should be your first step in the settlement process.\n### Check the Statute of Limitations\nBefore you attempt to settle a debt, check the statute of limitations on the debt. Collectors only have a certain amount of time to sue you for payments. If your debt is too old, the collector can't take you to court. You can determine if the statute of limitations for collecting a debt in your state has passed.\nIf you find the debt is older than the statute of limitations, tell any bill collector calling you they are wasting their time by harassing you for an uncollectable debt, as neither they nor the original creditor nor the assigned collection agency can take you to court to get a judgment.\n### Don't Confuse the Statute of Limitations with the Amount of Time a Collection Can Stay on Your Report\nAfter seven years (in most cases), a negative mark and the related collections will disappear from your credit report. If the debt has gone unpaid for seven years, then it can no longer legally remain on your credit report. Before the seven-year mark, you must challenge this listing on your credit report to get it off. You can see how long a negative item remains on your report.\nHowever, even though a debt may no longer legally appear on your credit report because it's too old, you could still be sued if the statute of limitations for your debt in your state is not up.\n**If the debt is gone from your credit report via debt validation AND the statute of limitations is up on this debt, you're home free!**\nIf your debt meets both of the above conditions, it is uncollectable and it cannot appear on your credit report. If you get to this point, stop here; you are done, so don't worry about the debt.\n### Good Candidates for Debt Settlement\nFor the purpose of this article, there are two types of debt — secured and unsecured.\n**Unsecured Debts**\n*   Medical bills\n*   Credit cards\n*   Department store cards\n*   Personal loans\n*   Student loans\n*   Bounced checks\n**Secured Debts**\n*   Home\n*   Auto\n**As a Rule, You Can Only Settle Unsecured Debts**\nWith a secured debt, a piece of real property (such as an automobile or a home) is promised if the debtor can't finish making payments, or defaults, on the loan. You will not be able to settle these debts, as the creditor will simply accept the promised property as the settlement. As a matter of fact, with a home or auto loan, you most likely won't be reading this information — your property will just be repossessed or foreclosed on.\nWith unsecured debts, there is nothing attached to the loan promised as repayment. Unsecured loans are typically given to people with good credit, due solely to the fact that they have good credit. These are the type of debts that a creditor is willing to settle, as they have no way to guarantee they will receive anything from you.\n### How to Get a Creditor to Make the Deal You Want\nYou have the natural advantage in debt settlement, because you have something the creditor wants. Don't cave in when they first tell you no. Remain calm and don't lose it and get angry. It's usually best to correspond with them via letters, so you have a paper trail of all your actions. Keep the attitude at all times that the collection agency will take less money than they say they will. \n### How Much Should You Offer to Settle Your Debt?\nDebt collectors are not hurting for money. To give you some background on how debt collectors operate, most bad debt companies pay or receive literally pennies on the dollar for the debts for which they are trying to collect. The amount that companies pay for bad debt depends on the type of account and its age:\n*   Debts that have recently been charged off: 6 to 7 cents on the dollar.\n*   Accounts that are slightly older and on which a collection agency or two has already taken a whack: 1.5 cents to 2 cents on the dollar.\n*   Years-old, out-of-statute debts: A penny or less.\nWith this in mind, you should always start your offer at 25 percent or less. Let's understand the math here. If your debt is $1,000, let's say at the most, the collection agency has paid or will collect 7 cents on the dollar, or $70. If you offer them $250 (25 percent), they are still making a profit of $180. Remember, the credit card companies are out of the picture at this point. This money goes directly to the collection agencies.\n### Important Tips When Negotiating Your Debts\n1.  **It's best to not talk to a collection agency on the phone.** We **_used_** to say never, however, if you want to get vital information from the collection agency, or even \"feel them out\" for what they would take as a settlement, go ahead. Just keep your finger on the hang-up button on your phone in case they start getting nasty.\n2.  **If you do call them**, start off the conversation by getting the physical address of the collection agency, the name of the agency, and the direct phone number to the person you are talking to.\n3.  **Get your terms _in writing_** before you even _consider_ making a payment. _Never_ expect a creditor to meet an agreement that was made verbally. _Everything_ must be in writing and, even then, you will probably have to fight to make the creditor live up to his end of the bargain.\n4.  **The older the debt, the smaller the settlement**. Logically, if they have called you 50 times and gotten no response, most likely they are going to move on to a better prospect. The collection agency may also choose to sell or assign the debt to a new collection agency _for even less money_, or temporarily ignore the debt. The course of action chosen by the creditor will vary widely between corporations and debts.\n5.  **Don't agree to payments.** This is **always** a bad idea. If you make payments to a collection agency, little things like extra interest or handling fees could keep your balance from ever going down. In some cases, making a payment restarts the statute of limitations. Wait until you have one lump sum. Remember, the older the collection, the more eager they will be to settle. If they are hounding you, get rid of them by sending a cease and desist letter.\n6.  **Keep good records.** This can be the difference between a good and bad settlement. Don't expect them to remember you or what you agreed upon.\n7.  **Send all correspondence via registered mail, receipt requested**. This doesn't require a trip to the post office; you can use the USPS's online Click-N-Ship service.\n8.  **Keep a copy of every letter you send.**\n9.  **Keep a log of when you spoke to the agencies, and with whom you spoke to**. Ask for the name of the supervisor of the person you spoke to, as the turnover rate at collections agencies is high.\n10.  **Follow up all phone correspondence** with a letter (registered, of course).\n11.  **Penalties and extra interest are typically fictitious amounts of money added on by the collection agency to pad their profits.** We've seen as much as 50 percent of the debt or more claimed to be owed by a collection agency consisting of interest and fees. Example: A guy who had his $5,000 original debts balloon up to $11,000 in less than 3 years due to interest and fees. This is illegal; every state has usury laws (which dictate the maximum interests allowed to be charged.) If you consider the junk debt buyer paid 7 cents on the dollar or less, there is no way there is this much interest.\n12.  **Never look too eager to settle.** Take plenty of time to reach an agreement. Never let it slip that you need to settle the debt because you're buying a home, car, or anything else. If, for example, you tell a creditor that you really need to get this debt settled to get into your dream home, you can forget any kind of settlement. The creditor will insist on the full balance. Try not to accept the first, or even second, settlement offer (unless of course, it's really good). If the collection agency is the one calling YOU to push the deal forward, you have the upper hand. You cannot expect to reach an affordable settlement if the creditor thinks he is in the driver's seat.\n13.  **Once you hand over the cash, all the wheeling and dealing is over.** If you forgot to negotiate the way the listing appears on your credit report, guess what? You're out of luck. Make sure you've gone over your agreement with a fine-tooth comb.\n### What If You're Contacted by More Than One Collection Agency for the Same Debt?\nIf you're contacted by more than one collection agency for the same debt, it means that the original creditor has hired a secondary collection agency, or the first one has sold the debt to a second creditor. This indicates the original creditor and even the first collection agency has given up on you. This means that the second collection agency has paid even less for the debt than the first one. If the agency hasn't been able to reach you by phone but knows that you are receiving its letters, it may be willing to take even less.\n### Should You Threaten Bankruptcy?\n**Use the threat of bankruptcy**. It will be in your best interest if the creditor believes that you have very little money and you are teetering on the edge of bankruptcy. You should approach each creditor as though this is their last chance to compromise, and get something out of your debt, before you declare bankruptcy and they get nothing.\n**_Be careful when doing this, however._** If you accumulate any more debt after stating this to a creditor, you may not be able to discharge this debt within bankruptcy.\n### Negotiate Your Credit Rating with the Creditor\nThe next thing you should do is negotiate your credit rating with the creditor. _**This is very important**_ as a \"paid\" collection is as negative to your credit rating as an \"unpaid collection.\" All your negotiation efforts and hard cold cash will do nothing to rebuild your credit report if you neglect to negotiate your credit rating in the process. You should push for a full deletion of the tradeline from your credit report.  Think this is impossible?  No, the collector chooses what to report on your credit report.  The only requirement by law is if they do report, it must be accurate. The more you pay, the more likely they are to remove the listing. END
 TITLE: Debt Settlement Techniques - How to Settle Debts on Your Own CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Debt Validation - Request Collection Agency Validate a Debt CONTENT: ###### Written by: Kristy Welsh\nDealing with debt collectors may be the last thing you want to do — or feel equipped to handle — but sometimes there is no way around it. If one of your outstanding debts gets transferred to a collection account, you've heard about it in one of three ways:\n1.  It came up as a listing on your credit report.\n2.  You received a telephone call from a collection agency.\n3.  You got a letter in the mail from a debt collection agency.\nYou could try to use one of our debt settlement methods to deal with a collection agency, but you might want to try debt validation first. Before you do, you need to understand the dos and don'ts of debt validation. This article is a great place to start, followed by Debt Validation Myths, two comprehensive resources that should leave you well-prepared for dealing with a debt collector.\nDebt Validation Basics\n----------------------\nThe best way to start dealing with a debt collector is to understand just what we mean by _debt validation_. Let's say you borrowed money from your friend, Paul. Paul would now be known as the original creditor. As times goes by, you think you might still owe Paul money but you are not sure how much.\nThen out of the blue a guy named Bob comes up to you and says he is collecting the money you owe Paul. Bob is acting just like a collection agency or debt collector. Now, you have never met Bob before so why would you just hand over the money he says you owe him? You probably wouldn't — at least not before first asking Bob some questions.\n1.  Is he legally authorized to collect the money?\n2.  Does Bob have proof showing the actual debt amount? What payments have already been made on the account? Where is the accounting of the debt, including all interest and fees? \n3.  Do you still really owe Paul the money? You remember borrowing money from someone else, your friend Sam, at the same time. You also remember paying one of them back the next day. Is this debt the one you borrowed from Sam or Paul? \nYou should go through the same thought process when a debt collector sends you a bill for a debt.\n### Don't Panic When Contacted by a Collection Agency\nIf you receive a phone call or a letter from a collection agency, your first reaction may be to panic. The best advice is to stay calm and analyze the situation. Think of what you would ask Paul in our example above. If you do, you'll know exactly what to ask a collection agency in order to validate the debt.\n### What Does a Debt Collector Need to Provide?\nA collection agency or debt collector need only provide the following for proof of the debt:\n1.  A credit card statement (such as a charge-off statement) that matches the balance claimed by the debt collector.\n2.  A list of charges that total the amount claimed in the initial communication.\n### What Does the Original Creditor Get Out of the Deal?\nCreditors hire collection companies to collect debts for them, because they simply don't have the time or resources to chase down all of their severely overdue accounts. When a creditor hires a collection agency, the debt has been _**assigned**_ to the collection agency. If a collection agency is successful at collecting the money on the account, they usually keep a percentage of what is collected as payment for services.\nOriginal creditors sometimes sell debts in large portfolios to collection agencies called _junk debt buyers_. These companies do not spend much money at all for these debts, sometimes paying less than 1 cent on the dollar. Even if the debt is not a large debt, they often hire an attorney to send out mass form letters to debtors in the hopes of collecting. As you can imagine, even if they only get a small percentage of the debtors to pay, profits are enormous. \n### Is the Collection Agency the Correct Party to Pay?\nWhy should you care if a debt is purchased or assigned? In an **_assignment_**, the collection agency does not own the debt, and therefore you do not technically owe them any money. There is no way for a collection agency to prove that you owe them money in court because there is only an assignment of the debt and not a contract between you and the creditor.\nOne loophole: Some contracts have the wording \"debtor agrees to be responsible for payment of this debt to creditor OR ITS ASSIGNS.\" In court, this is enough to prove there is a contract between you and the debt collector as well as the creditor and if in court, they can provide you with a copy of a contract that states this, you are pretty much stuck and need to [negotiate the debt](about:blank). When asking debt validation, a collection agency or junk debt buyer does not need to provide you with a contract in order to meet the requirements under the law.  However, we mention the places where this would be important in court so that you are prepared should you decide to go this route in your quest to settle or get rid of your collections.\nIt is not necessary to include any references to the FDCPA and FCRA in a dispute and validation request letter. Simply disputing and requesting validation is enough to show that you are aware of your rights. In addition, it's not your responsibility to inform a debt collector of the debt collector's responsibilities. If the debt collector is unaware of his responsibilities, it's his problem.\nDebt Validation Strategy\n------------------------\n1.  Mail your debt validation letter within 30 days(!) of the initial communication from the collector. What constitutes initial communication? Basically, a call or letter from a collection agency. If it has been more than 30 days, and you have reason to believe the collection to be inaccurate or unverifiable, then submit a credit dispute (which you can do at any time).\n2.  Dispute the debt with the credit bureaus if it is a result of ID theft or if it is being reported inaccurately. There is a risk of \"waking a sleeping giant\" if you dispute a debt within the [statute of limitations](about:blank). Sometimes it is better if you let sleeping dogs lie, as they say.\n3.  Check the [statute of limitations](about:blank) on the debt. If the statute of limitations has expired, send them a letter informing them that they are trying to collect a [zombie debt](about:blank). This is debt which is too old to have any legal liability for a consumer. Here is a [sample zombie debt letter](about:blank) for you to use.\n4.  Wait to hear back from the collection agency. Most likely they will not respond or they will respond saying that they received your letter.\n5.  If they haven't sent you satisfactory proof (listed above), and are still reporting this on your report, send a copy of the first letter you sent and a statement that they have not complied with your request. There is case law that says you can’t report if you haven’t validated the debt. (Moscona v. California Bus. Bureau, Inc. UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF CALIFORNIA (24 Oct, 2011)) Tell them they need to immediately remove the collection listing from your credit report or you are going to file a lawsuit.\n6.  Typically, your work will stop here, as most collection agencies will bow down to your demands and send you a letter agreeing to remove the listing. Now all you have to do is send a copy of the letter to the CRAs. If the collection agency did not agree to remove the listing, then you need to continue to the next steps.\n7.  File a lawsuit in small claims court against the collection agency.\n8.  Have the papers served to the collection agency.\n9.  You can try sending the credit bureau this [validation of debt letter](about:blank) to see if they will budge. They may tell you that the request needs to come from the creditor. This is baloney. If they can't give you reasonable information on how they verified the information and the collection agency has provided you none, you can conclude there was no reasonable investigation performed. \n10.  Notify the bureaus (anyone that is still reporting this debt) that you are suing them — for continuing to report listings that have not been validated — by using [this letter](about:blank) tweaked to your unique circumstance. The credit bureaus will call the creditors and find out that there is a question about whether the debt is legitimate. They should delete it immediately.\nAs with any legal efforts, it may be best to contact a competent consumer attorney. We are not attorneys. The best advice we can give is this: if you don't understand what you are dealing with, contact an attorney or a consumer credit counseling office. END
 TITLE: Debt Validation - Request Collection Agency Validate a Debt CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Debt Validation - Request Collection Agency Validate a Debt CONTENT:    |  |  |  | \n: . END
 TITLE: Filing Bankruptcy - Ch.7 and Ch.13 Bankruptcy CONTENT: Chapter 7 and Chapter 13 Bankruptcy — Bankruptcy Laws and Forms\n---------------------------------------------------------------\n###### Written by: Kristy Welsh\nAs tempting as bankruptcy may be, it is nothing to be entered into lightly and should always be considered as a last resort. To that end, before you file for bankruptcy, there are two things you need to do first, and in this order. One, exhaust every other possibility. Two, educate yourself about the bankruptcy process. The articles below will help you do both, on topics ranging from bankruptcy alternatives, to the _means test_, to finding a good bankruptcy attorney.\nFiling Chapter 7 Bankruptcy\n---------------------------\nChapter 7 Bankruptcy FAQs — What's dischargeable, and what's not? What assets can you keep? Will bankruptcy stop foreclosure or eviction? Does your spouse have to file, too? Get answers to these and other common questions about chapter 7 bankruptcy.\nTaking the Means Test — Before you can file chapter 7 bankruptcy, you are going to need to pass the means test. Find out what to expect, including the questions you'll have to answer and what happens next.\nCan Student Loan Debt Be Discharged in Chapter 7 Bankruptcy? — If you're going to file for bankruptcy, you'll obviously want to include your student loan debt. But can you? Get the facts about proving _undue hardship_.\nWhat Property Can You Keep After Chapter 7 Bankruptcy? — Believe it or not, you will probably be able to keep most of your personal property. It all depend on the value of the asset and the exemptions specific to your state.\nFiling Chapter 13 Bankruptcy\n----------------------------\nChapter 13 Bankruptcy FAQs — What is the difference between chapter 13 and chapter 7 bankruptcy? How long does it take to pay off chapter 13? Will it affect your credit? Get answers to these and other commonly asked questions about chapter 13.\nGeneral Information on Bankruptcy\n---------------------------------\nBankruptcy Myths — Contrary to popular belief, bankruptcy does _not_ discharge all types of debt. That's just one of the many myths you need to know the truth about before you file.\nWhat Debts Can Be Discharged in Bankruptcy? — You know you can discharge credit cards and debt that has gone to collections. But did you know you can also discharge utility bills and unpaid rent? See a longer list of qualifying debts (as well as a list of what bankruptcy _won't_ wipe clean).\nBankruptcy Reform Act of 2005 — An unprecedented number of bankruptcy filings prompted new laws that went into effect in October of 2005. See what changed.\n### Preventing Bankruptcy\nUnder 30? Three Reasons to Rethink Bankruptcy — As overwhelmed as you may feel by debt, bankruptcy is likely not the best bet if you are in your 20s. Get the facts and consider your alternatives.\nAlternatives to Filing Bankruptcy — Does it feel like bankruptcy is your only option at this point? Make sure of it by considering all of your alternatives first. Get tips on reducing your expenses, settling with creditors, and getting credit counseling.\nHow to Prevent Medical Bills from Bankrupting Your Family — Medical bills are the number one cause of bankruptcy. In many cases, this stems from the loss of a job due to a debilitating disease — just when you need it most, you lose your health insurance. Get tips on what to do if this happens to you.\n### Preparing to File for Bankruptcy\nBankruptcy Forms — This link will take you to the United States Courts website where you can download official forms and instructions on how to file for bankruptcy.\n50 Questions to Ask When Hiring a Bankruptcy Attorney — As if filing bankruptcy is not stressful enough, finding a competent lawyer is just more additional stress. Here are great questions to ask lawyers before hiring one to handle your bankruptcy case.\nHow to Overcome the Stigma of Filing Bankruptcy — Filing chapter 7 bankruptcy is not an easy decision — one made ever harder when you let the stigma associated with bankruptcy influence your decision. While it should only be used as a last resort, don't let stigma alone be a deterrent.\n### Bankruptcy Troubleshooting\nWhat If You Can't Qualify for Bankruptcy? — If you cannot pass the means test, you will not be able to file for chapter 7 bankruptcy. All is not lost, though. There are effective alternatives for dealing with your debt, like settling debt with your creditors (try this for sure) or stopping credit card payments altogether (consider this carefully, as you could face lawsuits).\nWhat If You Can't Afford to File for Bankruptcy? — Though the cost of filing pales in comparison to the debt you could have discharged, if you don't have the money to file then you don't have the money to file. If that's the case for you, get tips on what to do.\nCommon Mistakes Made When Filing Bankruptcy — Whether you are filing on your own or using a bankruptcy attorney, mistakes get made. Take a look at the most common errors that could get your bankruptcy case dismissed.\nThe Dismissal of Your Bankruptcy Petition — Filing for bankruptcy does not necessarily mean the discharge of your debts is a done deal. Not only can a court dismiss your bankruptcy case, but you can voluntarily dismiss it yourself if you change your mind. Get the facts, including how to reinstate a dismissed bankruptcy or file a new one.\nBankruptcy Fraud Cases — Bankruptcy fraud is a federal crime punishable by up to $250,000 and\/or up to 5 years in prison. See what constitutes bankruptcy fraud and statistics of it prevalence.\nUnderstanding the Liabilities of Bankruptcy Attorneys — See how the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 affected attorney liabilities.\n### After Bankruptcy\nIs There Life After Bankruptcy? — Absolutely! In fact, you will probably be surprised at how fast you can turn your credit and financial situation around. END
 TITLE: Talk to a Credit Expert Before Filing For Bankruptcy CONTENT: Before Filing BK — Get a Free Credit Evaluation\n-----------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 3, 2017_\nFiling for bankruptcy is a big step and one that will affect your credit for 7 to 10 years. It is not a step you want to take without first exhausting all other options first. If you are considering filing for bankruptcy, don't do anything until you have spoken to a credit expert first. Why a credit expert? Because they may be able to fix your credit and deal with your creditors so you can avoid filing for bankruptcy.\nNow, having said that, it is always a good idea to talk to a qualified bankruptcy attorney as well. Talking to a knowledgeable person who can help you with this seemingly overwhelming decision is a crucial step if you are unsure about filing for Chapter 7 or Chapter 13 bankruptcy.\nFill out the form to right and you will be able to talk to a credit expert for free and start getting your financial future back on track. Get a **FREE Credit Evaluation** today! END
 TITLE: Talk to a Credit Expert Before Filing For Bankruptcy CONTENT:    |  |  |  | \n: . END
 TITLE: DIY Debt Settlement - Debt Consolidation CONTENT: How to Settle Your Debt and Do-It-Yourself Debt Settlement Techniques\n---------------------------------------------------------------------\n###### Written by: Kristy Welsh\n13 Debt Settlement Myths — Debt settlement is challenging enough without misinformation steering you in the wrong direction. Take a look at the top 13 myths about how debt settlement works and tips on using a debt settlement company.\nDon't Confuse Debt Settlement with Debt Negotiation Companies — Settling your debts is something you can (and should) do either on your own or through a non-profit credit counseling service. What you need to be leery of are for-profit debt negotiation companies with practices that could do you more harm than good.\nDIY Debt Settlement\n-------------------\nDo-It-Yourself Debt Settlement Strategies — Yes, it is possible to settle your debts on your own for less that you owe. Learn how.\nHow to Settle Debt with Original Creditors — You don't have to wait to settle a debt until it's been sold to a collection agency. In fact, that's the last thing you want to wait for. Learn how to settle with the original creditor first.\nHow to Settle Debts with Collection Agencies — Nobody likes dealing with collection agencies, but it's worth the trouble if you can settle for less than you owe.\nHow to Use Debt Validation with a Collection Agency — As soon as you receive the first notice from a collection agency, send them a request for debt validation. If they can't prove the validity of the debt, you owe them nothing. Get the facts.\nHow to Pay for Delete with a Collection Agency — Just because you pay off a delinquent debt — for the full amount or in a settlement for less than you owe — it doesn't mean the negative listing automatically falls off your credit reports. For that to happen, you need to negotiate a pay for delete.\nHow to Negotiate Your Credit Rating with a Collection Agency — If you can't negotiate a pay for delete, the next best thing is to negotiate how the listing will be updated on your credit report. Get the facts about \"paid,\" \"settled,\" \"paid charge off,\" and other listings.\nDebt Negotiation Success Stories — Not sure you have it in you to settle your own debts? As these success stories prove, it's worth the time, effort, and discomfort to at least give it a try.\nLegal Issues When Settling Your Debts\n-------------------------------------\nHow Collection Agencies Could Come After You Post-Settlement — If you don't get your settlement agreement in writing, you could be sued for it. Some states allow them to settle with you, then sell the remaining balance to another agency for collections. Get the facts.\nHow to Fight a Debt Lawsuit — If a collection agency is suing you for a debt, the last thing you want to do is ignore it. Learn how to answer and challenge the lawsuit, make them prove what you owe, use the statute of limitations, and file your own lawsuit.\nHow Debts Discharged in Bankruptcy Can Spring Back to Life — Once a debt is discharged in bankruptcy, you are no longer legally responsible for it. Learn how to respond if a creditor tries to collect on it anyway.\nWhat is a 1099-C IRS Form? — When you settle a debt for less than you owe, the collector files a 1099-C with the IRS for Cancellation of Debt. Whatever amount is forgiven is treated like income that you have to pay taxes on. Learn more.\n7 Steps for Dealing with a 1099-C — There are circumstances in which you may not have to pay taxes on cancelled debt. Get the facts about exclusions and exceptions.\nDebt Collection Practices\n-------------------------\nHow to Keep Debt Collectors from Ruining Your Credit — Once a debt gets turned over to a collection agency, your credit is going to take a hit no matter what. But there are things you can do to minimize the damage.\nHow IRS Hiring Collection Agencies Could Affect You — If you owe back taxes to the IRS, a change in federal tax collection should be of interest to you. As of April 2017, the Internal Revenue Service is turning overdue accounts over to private collection agencies. Find out how this change could affect you.\nWhat You Need to Know About Junk Debt Buyers — The older your debt, the more likely it has been sold multiple times, ending up in the hands of a junk debt buyer. Whether they're trying to collect or suing you, get the facts about how to deal with them, like making them _prove_ the debt belongs to you.\nHow to Protect Yourself from Zombie Debt — Once a debt has passed the statute of limitations, you are no longer legally required to pay it. Get the facts about _zombie debt_ so you can avoid paying something you don't owe.\nHow to Protect Your Child's College Fund from Debt Collectors — Are college savings safe from collectors? It depends on how it's saved, how long it's been saved, and state laws. Get the facts.\nWho is MRS Associates? — If MRS Associates is trying to collect a debt from you, you may be understandably leery of paying a company you've never heard of. We can confirm that MRS Associates is a legitimate collection agency. Learn more about this company, including what to do if you hear from them.\nConsumer Credit Counseling\n--------------------------\nThe Basics of Consumer Credit Counseling — See the history of consumer credit counseling, how it works, and a list of recommended companies.\nCredit Counseling FAQs — Is all credit counseling non-profit? What information should you be prepared to provide to credit counselors? Does credit counseling hurt your credit? How long does it take? What does it cost? Get answers to these and other commonly asked questions about credit counseling.\nConsumer Credit Counseling Services (CCCS) — A member of the CCCS network reached out to us to respond to our criticism of the services. Here is what they had to say. (Note, there are several other companies we recommend above CCCS; see the FAQs above.) \nHow Will Debt Relief Affect Your Credit? — It depends on the type of debt relief you seek. Learn how your credit is affected when you pay off your balances, consolidate your debt, get credit counseling, negotiate and settle your debts, and file for bankruptcy.\nInformation on Debt Consolidation Companies\n-------------------------------------------\nDebt Consolidation Rules — What disclosures are debt consolidation companies required to make? What claims are they allowed to make? Are they allowed to charge up-front fees? Get the facts.\nDebt Consolidation: The Basics — See the pros and cons of debt consolidation, as well as types of debt consolidation loans, alternatives, and scams to watch out for.\nHow to Find a Reputable Debt Consolidation Company — Are they members of the NFCC or AICCCA? What are their counselors' qualifications? What do they charge? How are they funded? Get answers to these and other questions you need good answers to before hiring a debt consolidation company.\nHow to Get Out of a Debt Consolidation Program — No doubt you entered into it with the best of intentions. Unfortunately, some debt consolidation programs set consumers up to fail. Get tips on getting out of it.\nAmeridebt — This debt consolidation company was forced to close back in 2005, but it is still worth reading about. For more info — see our rebuttal letter, letters from readers, and more letters from readers.\nManaging Your Debt\n------------------\nDebt-Free Dos and Don'ts — Building good credit depends on you using it. But how do you reconcile that with debt-free living? Find out.\nQuestions to Ask Yourself Before Taking on More Debt — Can you pay with cash instead? Are you using the most cost-effective type of debt? Have you shopped around for the best terms? Ask yourself these (and other) questions before taking on new debt.\nHow to Eliminate and Reduce Debt — Damage already done? Don't give up. Take a look at strategies that can, slowly but surely, reduce and eliminate debt.\nBad Habits That Keep You in Debt — Does your mood dictate buying decisions? Does money spend easier when you carry cash? Do you charge things just for the rewards? Face the truth about these and other bad habits that could be keeping you in debt.\nAre You In Debt Denial? — Do you spend without a monthly budget? Do you let unpaid bills pile up? Do you frequently pay your bills late? \"Yes\" answers to these and 15 other questions could mean you're in debt denial.\nHow to Handle the Stress of Debt — Finding money in your budget to pay down debt is tough enough. What makes it worse is the stress and anxiety that comes with it. Get tips on how to handle it.\nHow to Use a Personal Loan to Pay Off Debt — When you're drowning in debt, taking on new debt is probably the last thing on your mind (as it should be). But a personal loan may be worthy of consideration if you can use the new debt to pay off the old at a _lower interest rate_.\nWhy All That Debt May Not Be Your Fault — Yes, you are responsible for your financial choices, but what external circumstances are driving them?\nDebt Tips for Newlyweds — Whether you knew exactly how much debt you'd be dealing with once you were married, or it came as a complete surprise, get tips on making it work as newlyweds.\nHow to Handle Debt During a Break-Up — No matter how anxious you are to sever ties, it is critical that you sort out your finances before parting ways. Get tips on how to handle joint debt.\nWhat Happens to Debt When You Move Out of the Country? — Do you still owe the debt? Can the creditor sue you for it? What happens when you return? Get answers to these and other questions about what happens to your debt when you leave the U.S.\nDebt Demographics\n-----------------\nDelinquent Debt Statistics — Behind on your bills? You're not alone. Check out four common delinquent debt scenarios and what to do about them.\nWhy Debt Is Rising Among Older Americans — Think you'll have less debt in your later years? Probably not. Debt is rising among older Americans. Find out why and how to prepare for it.\nWhy Millennials Have So Much Debt — There may not be any truly \"good\" debt, but some is better than others. Find out how Millennial debt stacks up.\nWomen Have More Credit Card Debt Than Men — How do women view debt differently from men? And how does it affect the way they manage their credit cards? Get the facts.\nHow Predatory Lending Practices Are Hurting Our Troops — If military personnel become delinquent on debt, they can be denied the security clearance they need to do their jobs. That makes predatory lending practices especially harmful to our troops.\nTypes of Debt\n-------------\n### Credit Card Debt\nHow Credit Card Debt Is Handled After Someone Dies — What if there isn't enough money in the estate to pay off the debt? Are family members held responsible? What if you're a co-signer or authorized user? Get answers to these and other common questions about credit card debt of someone who is deceased.\nHow to Handle Credit Card Debt Lawsuits — If you're sued for credit card debt, the last thing you want to do is ignore it, as this will only award the credit card issuer a default judgment. Learn how to respond to a credit card lawsuit, and how to fight it.\n### Student Loans\nHow to Manage Student Loan Debt — How does a Pay As You Earn plan work? Can you consolidate student loans? What's the difference between forbearance and deferment? Get answers to these and other questions key to successful student loan management.\n10 Debt Management Tips for College Grads — Starting out after college is challenging enough without debt hanging over your head. Student loans may be a given, but there are things you can do to minimize them and other debt-incurring expenses.\n### Medical Debt\nHow to Deal With Medical Debt and Hospital Bills — Medical debt is the number one reason people file for bankruptcy. Fortunately, there are things you can do to keep it from reaching that point (or going to collections in the first place). Get tips to help you along.\nHow to Negotiate and Settle Medical Debt — Have your unpaid medical bills already gone to collections? Follow these steps to negotiate and settle your debt before the situation gets any worse. END
 TITLE: Means Test Determines Chapter 7 Bankruptcy Eligibility CONTENT: Taking the Means Test — Do You Qualify for Chapter 7 Bankruptcy?\n----------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 2, 2017_\nPresident Bush signed into law the The Bankruptcy Abuse Prevention and Consumer Protection Act back in April of 2005, which made some drastic changes to the U.S. Bankruptcy Code. One of those changes was the addition of a **Means Test**.\nThe Means Test is a series of financial questions aimed to see if the consumer qualifies for Chapter 7 bankruptcy. Prior to 2005, filers could choose the type of bankruptcy that was best for them — CH 7 or CH 13 bankruptcy — and the majority of filers chose Chapter 7 since it was a way to wipe out all of their debt no matter what their financial situation was at the time. Now, one has to \"qualify\" in order to file Chapter 7 bankruptcy and if you don't qualify, you must file Chapter 13 bankruptcy. In contrast to CH 7, CH 13 is more of a \"reorganizing\" bankruptcy where you have to pay back all hour debts. No wonder everyone wanted to file for Chapter 7.\nHow Does the Mean Test Work?\n----------------------------\nThe Means Test was designed to limit the use of Chapter 7 bankruptcy to those who truly can't pay their debts. The test is designed to calculate your current monthly disposable income and the higher your disposable income, the more likely you **won't** be allowed to use CH 7 bankruptcy. Instead, you will be directed to file CH 13 instead.\nThe test will work as follows:\n**Question # 1:**  \nIs your family income LESS than the median income for a household of your size in your state? Here's how you tell. Go to the State Median Family Income for cases filed between November 1, 2016 and March 31, 2017, inclusively.\nIf your income is less than the median income, you do not need to complete any more of the Means Test and you can file for Chapter 7 bankruptcy.\nIf your income is above the median income, you need to continue on to the following question.\n**Question # 2:**  \nFor those whose household income is higher than the state median, you will need to determine your disposable income and if you have enough disposable income to pay your creditors.\nThe calculations for this vary by state, county and metropolitan area as there are different allowable amounts for different expenses. Use this online Bankruptcy Means Test Calculator to determine your eligibility.\nIf you do not pass this part of the Means Test, Chapter 7 bankruptcy cannot be filed but Chapter 13 bankruptcy may be filed.\nWhat if You Pass the Chapter 7 Means Test?\n------------------------------------------\nJust because you passed the Means Test does not necessarily mean you have to file for Chapter 7 bankruptcy. Before you make this life and credit changing decision, it is best to talk to a qualified bankruptcy attorney. Your attorney may offer some alternatives to filing bankruptcy, which could save you a lot of money and grief. Filing for bankruptcy should be your last resort and definitely not a decision to take lightly.\nWhat if You Don't Pass the Chapter 7 Means Test?\n------------------------------------------------\nIf you don't pass the Means Test, it means you will have to file for Chapter 13 bankruptcy instead. CH 13 requires you to make monthly payments to your creditors over 3 to 5 years and these payments are monitored by the court. You can also read all about other advantages to Chapter 13.\nAgain, before you decide to file for CH 13 bankruptcy, it is best to get legal advice from a qualified bankruptcy attorney. END
 TITLE: Information on Chapter 13 Bankruptcy CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: _December 19, 2020__\nThere are two main ways to file personal bankruptcy under the U.S. Bankruptcy Code — Chapter 7 and Chapter 13. In a CH 7, your assets are liquidated to pay off your debts and then you are given a clean slate, so to speak. In a CH 13 filing, you are given 3 to 5 years to pay off your debts and you are able to keep all of your assets. Of course, there is a lot more to each type of bankruptcy and in this article we will address the most frequently asked questions regarding filing Chapter 13 BK.\n* * *\nOverview of Chapter 13 Bankruptcy\n---------------------------------\nChapter 13 bankruptcy is also known as a reorganization bankruptcy. It is filed by individuals who want to pay off their debts over a period of three to five years and it appeals to people who do not want to liquidate non-exempt property.\nChapter 13 is also an option for individuals who have sufficient income to pay their reasonable monthly expenses and have money left over to pay off their debts. In other words, CH 13 is for someone who did not pass the Means Test and cannot file for CH 7 bankruptcy.\nWhat is the Difference Between Chapter 13 and Chapter 7?\n--------------------------------------------------------\nOne of the main differences between Chapter 13 and Chapter 7 bankruptcy, is the ability of a debtor to retain certain assets that would otherwise be liquidated by a Chapter 7 bankruptcy trustee. In most cases, you can keep your home and your car under either plan, provided your equity does not exceed certain limits. However, under CH 7, you wouldn't be able to keep your rental properties, antique gun collections, etc.\nThe goal of most Chapter 7 bankruptcies is to discharge your existing debts and allow you a \"fresh start\" on your finances. In other words, once your discharge is granted, you no longer need to repay the debts that were incurred before you filed your bankruptcy.\nUnder a Chapter 13, however, you repay most or all of your debts before your slate, so to speak, is wiped clean. And because you repay your debts, you gain certain advantages over a Chapter 7 BK.\n* * *\nWho Can File for Chapter 13 Bankruptcy?\n---------------------------------------\nAn individual with regular income, who can pay for their living expenses but cannot keep up with the payments on their debts. However, filers can have only so much debt. As of April 2019, the current debt limitations are:\n*   $1,257,850 of secured debt, and\n*   $419,275 of unsecured debt.\nWhat Are The Benefits to Filing CH 13?\n--------------------------------------\nChapter 13 bankruptcy protects individuals from the collection efforts of creditors; permits individuals to keep their real estate and personal property; and provides individuals the opportunity to repay their debts through reduced payments. Another benefit is that the time your Chapter 13 bankruptcy shows on your credit report is less, so it takes less time to repair your credit after a bankruptcy.\nYou may be able to discharge debts in a Chapter 13 bankruptcy that would be non-dischargeable under other chapters, for example, fraud judgments.\n* * *\nWhat Are The Benefits to Filing CH 13?\n--------------------------------------\nYou must qualify for the payments determined by the courts.  You can use the following income:\n*   regular wages or salary\n*   income from self-employment\n*   wages from seasonal work\n*   commissions from sales or other work\n*   pension payments\n*   Social Security benefits\n*   disability or workers' compensation benefits\n*   unemployment benefits, strike benefits, and the like\n*   public benefits (welfare payments)\n*   child support or alimony you receive\n*   royalties and rents, and\n*   proceeds from selling property, especially if selling property is part of your primary business property.\n* * *\nHow Long Does it Take to Pay Off a Chapter 13 Bankruptcy?\n---------------------------------------------------------\nThe size of your monthly plan payments is determined by the amount you can afford to pay after paying necessary living expenses; i.e., insurance, car payment, mortgage payment, food, utilities, etc.\nTypically, the payments last for 36 months, unless additional time is requested, but in no event will they last more than 60 months. Therefore, if your payment analysis shows, for example, that you can afford to pay $200.00 per month (above and beyond your normal living expenses), you would pay that each month to the Chapter 13 Trustee, who would disperse it pro rata among your creditors. At the end of 36 months, you are discharged from all dischargeable unsecured debts, regardless of how much your creditors have received.\nIn addition to your plan payments, you must stay current with any ongoing obligations you have to secured creditors, such as on your mortgage. Chapter 13 (or any type of bankruptcy for that matter) only affects debts that you owe _on or before_ you filed the bankruptcy. Therefore, on your mortgages and other secured debts, your Plan payment goes to pay any arrearages that existed on the date you file and you can repay that arrearage over the life of the Plan; but, you must stay current from the filing date forward with any mortgage payments, etc.\nSecured debts (your mortgages) must be repaid in full, but CH 13 enables you to cure the defaults (reinstate the loans) over 36 months (or up to 60 months with creditor consent and court approval). You also have the ability to eliminate junior liens from your real property (your mortgages) under certain circumstances and restructure mortgage and other payments.\nHowever under the CARES Act, you may be able to extend the payments to 84 months.  However, the CARES Act will sunset on March 27, 2021.\n* * *\nWhat Are the Disadvantages to Filing for Chapter 13 Bankruptcy?\n---------------------------------------------------------------\nIf you miss any payments _at all_ that are due under your Plan, your case will be dismissed by the Court. Also, generally speaking, a CH 13 case is a bit more expensive to filethan a CH 7 case — sometimes running $1,000 to $1,500 more in filing fees than a Chapter 7 bankruptcy filing. In addition to your filing fee:\n*   the trustee's commission (3% to 10% of each monthly payment), and\n*   attorney's fees, if you hire an attorney for help with your Chapter 13 bankruptcy (which is advised).\n* * *\nWhat will I have to Pay Back?\n-----------------------------\n**Priority debts will be paid 100%.** These include:\n*   back alimony and child support\n*   most tax debts (including state and federal income taxes)\n*   wages, salaries, or commissions you owe to employees, and\n*   contributions you owe to an employee benefit fund.\n**Mortgage defaults** **will be paid 100%** if you want to keep your house.\n**Other secured debt defaults** **will be paid 100%** if you want to keep the property. Missed car payments fall into this category.\n**Unsecured debts** will be paid anywhere from 0% to 100% of what you owe. The exact amount depends on:\n*   the total value of your nonexempt property\n*   the amount of disposable income you have each month to put toward your debts, and\n*   how long your plan lasts.\n* * *\nWill a Chapter 13 Bankruptcy Affect my Credit?\n----------------------------------------------\nYes. A CH 13 bankruptcy will stay on your credit report for 7 years after you file, as opposed to 10 years if you file CH 7 BK. Other accurate negative reports on your credit must be removed after 7 years, such as late payments on credit cards, foreclosures, etc.\nYour credit will most definitely be less damaged than had you completed a Chapter 7. However, the usual limitations will apply until the bankruptcy disappears off of your report: You will not get as high a credit limit as you once had nor will you be able to borrow a large sum of money. But getting some credit, such as a secured credit card, shouldn't be that difficult and you will be able to rebuild your credit over time.\nWhat you will likely face is not unlike a person with a Chapter 7 on their credit report: higher interest rates, required higher down payments, more points, etc. But you will be treated more leniently than a person with a Chapter 7 bankruptcy. For instance, mortgage lenders will give you the benefit of the doubt, giving you preferred credit status over those filing Chapter 7. END
 TITLE: Identity Theft Prevention-Prevent IdentityFraud|CreditInfoCenter CONTENT: Articles on Identity Theft, Identity Fraud, Credit Protection\n-------------------------------------------------------------\n###### Written by: Kristy Welsh\nIdentity theft happens when someone steals your personal information. Identity fraud happens when they use stolen personal information to commit fraudulent acts. ID theft and identity fraud are serious crimes that can wreak havoc on your finances and credit history. What's worse is it can take considerable time and money to resolve. According to Insurance Information Institute's 2017 Identity Fraud Study, $16 billion was stolen from 15.4 million U.S. consumers in 2016, compared with $15.3 billion and 13.1 million victims a year earlier. Over the last six years, identity thieves have stolen over $107 billion.\nThough credit repair is our focus, we can't talk about repairing your credit without addressing ID theft and fraud, as the two go hand-in-hand. Because if you are a victim of ID theft or fraud, it can devastate your credit score. The following articles will help you protect yourself from ID theft and fraud, and walk you through the credit repair process if it happens to you or a family member.\nFacts About Identity Theft\n--------------------------\n11 Ways a Thief Can Steal Your Identity — Yes, there really are that many ways ID theft can be committed against you. Thieves know all of them. Do you?\nIdentity Theft Statistics — Doubt it can happen to you (or surely won't happen _again_)? These numbers should change your mind. See recent stats on identity theft and identity fraud.\nWhat is Phishing? — This common type of cyber scam is the reason you have to keep an eye out for suspicious-looking emails. To avoid becoming a victim of cyber phishing, get the facts about what phishing scammers want from you and how to prevent them from getting it.\nTypes of Identity Theft\n-----------------------\nDebit Card Data Theft at ATMs — Of all the places you use your debit card, you bank's ATM probably feels pretty low-risk. But whether it belongs to your bank or not, you can never get too comfortable using ATMs. Get the facts about debit card data theft at ATMs and how to protect yourself.\nMedical Identity Theft — There's more at stake than your finances or your credit. Medical identity theft can mean wrong information in your medical records. With this much at stake, get the facts about how to protect yourself from this especially dangerous type of ID theft. \nChild Identity Theft — While they may not have bank accounts or credit cards, kids have names and social security numbers that identity thieves can use for all sorts of fraudulent activities. Learn how to protect your family.\nIdentity Theft and Fraud Among Family Members — All identity theft hurts, but family identity theft and fraud probably hurts the most. And surprisingly, it's an all-to-common occurrence. Take these steps to protect your credit if a family member steals your identity or commits fraud against you.\nHow to Protect Yourself from Identity Theft and Fraud\n-----------------------------------------------------\n### Things You Can Do Yourself\nProtect Your Credit From Identity Theft — As prevalent as identity theft and fraud is, it's tempting to throw up your hands resigned to the fact it's going to happen to you no matter what you do. But while there is no guaranteed means of prevention, you can drastically minimize risk. Learn how to protect your identity and your credit from thieves.\nShred These Documents — As much as we rely on electronic documents these days, we still have plenty of paper lying around with personal information on it. Don't take it for granted. Are you shredding these 21 types of sensitive documents?\nPick Strong Passwords — We need passwords for so many things these days that it's tempting to create an easy one that you can use for everything. But that's exactly what hackers are hoping for. Take the time to create strong passwords.\nUse a Password Manager — Don't want to spend time or energy creating a unique password for every one of your online accounts? Let a password manager do it for you.\nAvoid Sharing This Information on Social Media — We share so much on social media these days that it's easy to slip up and share too much. It can be a recipe for disaster in more ways than one, ID theft among them. Find out what to avoid.\nFollow These Tips When Shopping Online — The convenience of using credit cards to shop online comes at a cost — the risk of identity thieves getting a hold of your credit card information. Protect yourself as best as you can by following these guidelines.\nShield Your Online Activity and Protect Your Identity — Take your online security measures to the next level. Learn how to hide your IP address, encrypt your emails, shield your credit card number, and more.\n### Identity Theft Protection Services\nCompanies We Recommend For Identity Theft Protection — There are plenty of things you can do on your own to protect yourself from identity theft. But if you want professional help with credit monitoring and ID theft protection, here's a list of companies to consider.\nPros and Cons of Enrolling in Identity Theft Protection — As good as an ID theft protection program might sound, you may decide it's not worth the money. Weigh the pros and cons first.\nEarly Warning Services, LLC — This company was formed to help eliminate fraud in the financial systems. Started over 20 years ago and currently owned by Bank of America, Chase, and Wells Fargo, it offers the sharing of information between banking institutions to help fight fraud.\nWhat to do if You are a Victim of Identity Theft or Fraud\n---------------------------------------------------------\nSteps to Take if You Are a Victim of Identity Theft — Don't wait until someone has stolen your identity to learn how to respond. When it happens, time is of the essence, so it helps to already know the steps necessary to minimize the damage. Get the facts.\nHow to Remove Fraudulent Accounts — If you are a victim of identity fraud, unauthorized credit accounts may have been opened in your name. You're not stuck with them. Learn how to remove these fraudulent credit accounts from your credit reports.\nA Woeful Tale of a Waylaid Wallet — Wallet stolen? You're not alone. Read one woman's story of what happened to her and how what she learned can help you. END
 TITLE: Growing Child Identity Theft and Identity Theft Protection CONTENT: Child Identity Theft is the Fastest Growing Type of Fraud\n---------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: December 19, 2020_\nIt is hard to imagine there is anybody out there that isn't aware of the dangers of identity theft, and has not implemented at least minimal ID theft protections against this fast-growing crime in their day-to-day life. But what about those of us with kids; have you considered the safety of your children's identities? With it now being standard practice to obtain social security numbers for children as infants, there is a new crop of identity thieves targeting an unsuspecting population - our children.\nMore than 1 million children in the U.S. were ID theft victims last year, resulting in losses of $2.67 billion, according to the 2018 Child Identity Fraud Study by Javelin Strategy & Research. No one is too young to be targeted. Javelin found that two-thirds of the victims were under the age of eight. Another 20 percent were eight to 12 years old. Stealing a child's identity is a ready-made \"blank transcript\" for the new owner to create as their own. Because a child's identity is likely to have no significant previous information on it, they are the ideal template for individuals needing to re-start their lives to avoid arrest, or for illegal immigrants looking to find a way to live and work in the United States. There are many ways that a potential identity thief may use to obtain your child's name and Social Security number, especially if you do not maintain an awareness of your child's personal information.\nHow Does Child Identity Theft Occur?\n------------------------------------\nHere are just some of the ways that thieves can obtain your child's personal information. All they really need is a name and Social Security number, and they will likely target institutions that do not have a high level of security in place to protect the data. In many cases, the personal information stored at the types of places listed below will be readily accessible to volunteers and multiple employees, and not necessarily kept secure.\n1.  Registration for school or daycare facilities.\n2.  Doctor or dentist office medical records.\n3.  Application for medical insurance.\n4.  Registration for youth sports teams or camps.\n5.  Registration for youth organizations such as Cub Scouts, Girl Scouts, etc.\n6.  Thieves lurking on social networking sites may convince a child to provide personal data.\nThere is no federal law forbidding an organization from asking for a Social Security number, and as is obvious from the list above there are many opportunities for thieves to find potentially ill-guarded information. Once a thief obtains the necessary information, they will usually apply for credit under the victim's name with a fake address. Although the age of the applicant should show up on a credit background check, it is often overlooked during the screening process and goes undetected. With your child's identity, the thief may fraudulently open bank, credit card and utility accounts, falsely obtain a job and even file taxes.\nHow Can I Prevent Child Identity Theft?\n---------------------------------------\nJust like with adult identity theft, you need to be proactive and _prevent identity theft_ rather than planning to simply \"fix it after the fact.\" If you go to open a bank account for your child's piggy bank savings and are denied credit, it is a bit too late.\n1.  Run your child's credit report on a semi-annual basis. It should indicate \"no credit found,\" if you have not opened accounts in your child's name.\n2.  Consider adding your children's credit to your credit monitoring service.\n3.  If a child's Social Security number is requested by a third party, do not provide this unless absolutely necessary.\nKeeping a close, proactive eye on your child's credit now can save them from a tremendous amount of financial heartache in the future from identity theft and fraud. END
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 TITLE: How to Protect Yourself Fom Identity Theft CONTENT: How to Protect Your Credit from Identity Theft\n----------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: December 19, 2020_\nIf you have read some of our other articles about identity theft, you must certainly have noticed the rise, year after year, in the number of victims of ID fraud and stolen identities. Desperate times bring out desperate measures and people with poor credit, no money, and no scruples have gone the way of figuring out how to steal another person's identity to better their situation. Don't become another statistic - be proactive and learn how to protect your credit from identity stealing thieves.\nAccording to the 2019 Identity Fraud Study from Javelin Strategy & Research, the number of consumers who were victims of identity fraud fell to 14.4 million in 2018, down from a record high of 16.7 million in 2017. However, identity fraud victims in 2018 bore a heavier financial burden: 3.3 million people were responsible for some of the liability of the fraud committed against them, nearly three times as many as in 2016. Moreover, these victims’ out-of-pocket fraud costs more than doubled from 2016 to 2018 to $1.7 billion. \nWhy Protect Your Credit?\n------------------------\nCredit, second only to your family and your time, is the most important asset you possess. The difference between having credit or not can be the difference between freedom and oppression, between opportunity taken and opportunity denied.\nIn every other system in this country, you are innocent until proven guilty. Not so with your credit. All a creditor has to do is say that you were late or delinquent in your payments and it goes on your record. It's up to you to prove _conclusively_ that you were in fact, not late. If you don't have any proof, your creditor wins and you lose. This is especially frightening if someone steals your identity, because even if you are innocent, it will cost YOU money to go to court, track down documentation, hire lawyers, etc. Your creditors cannot be held liable as there is no way they could have known you were a victim of fraud. If, in the unlikely event you can find and identify your identity thief, chances are slim you will be able to recover costs from him\/her for your efforts to clear your name. In other words, this will cost you a **fortune** to clear your name, all non-refundable. It's worth the effort to take precautions against this happening to you.\nHow Does a Credit Rating Affect You?\n------------------------------------\nIn today's society, it is not your word or character which incites the most trust, but your credit rating. Without a good credit rating, you can't open a checking account, rent a car, get a credit card, buy a house, get a small business loan, get a student loan; the list goes on.\nAnd what if your credit is not hopeless, but just damaged? You pay a large price in increased fees and interest rates on credit cards, car loans, and home loans. Increased credit costs due to poor credit can add up to thousands of dollars a year. Believe us, it is worth your time and effort to safeguard your credit rating.\nHow You Can Protect Your Credit?\n--------------------------------\nThe most important things you can do to safeguard your credit:\n*   **Buy a Shredder.**  Shredders are inexpensive and can be bought at any office supply store. Buy one and use it religiously. It is the cheapest and easiest way to protect your privacy. Shred any paperwork containing personal information before it hits the trash can. Dumpster-diving is the practice of looking through trash for personal information and is the most common method that identity thieves use to get personal information. Here are items you should certainly shred.\n    *   Credit card applications you get in the mail\n    *   Any credit card receipts\n    *   Pay stubs, bank statements, and bank deposit receipts\n    *   Utility bills\n    *   Old tax returns\n    *   Anything containing your Social Security Number\n*   **Review Your Credit Report at Least Once a Year.**  You can obtain all three credit reports for free once a year from AnnualCredtiReport.com. You can also obtain your reports from a variety of other companies - here is a great article with all the information on credit report offers. It is so easy to get copies of your reports that you have no reason not to review your credit reports reqularly.\n*   **What to Look For on Your Report.**  If you find incorrect information, don't panic. Use our credit repair methods to challenge accounts you know aren't yours. It could just be a mistake.\n    1.  Are all of the credit lines on the report yours? Make note of each one.\n    2.  Review all the credit inquiries. Are there excessive inquiries found on your report? Can you account for all of them? Excessive inquiries could mean that someone is trying to get credit in your name. Use our methods of challenging these inquiries if you want to find out more information.\n*   **Other Items to Look for on Your Credit Report.**  You will want to keep your report tidy and in the best possible shape for when you get the sudden urge to apply for new credit. Don't wait to clean up your report, do it now. You should also note that it is becoming an new industry practice to raise rates on existing credit card rates if other credit lines go delinquent. Once a credit card company raises your rate, it is difficult to get them to lower it again, even if your credit report has been corrected.\n    *   Is old credit (like closed accounts, old delinquent marks) on your report that should come off? Credit lines which have been closed or had no activity for 7 years should not be on your report, including derogatory credit.\n    *   Look for any late payments and see if they are they accurate.\n    *   If you have joint credit, pay attention to the current balances on these accounts. Were you aware of any high balances?\n*   **Secure Your Paperwork.** The saddest tales of all are when people you know steal your identity. You don't think this happens? Read our article on Family Fraud. How to do secure your paperwork? Buy a file cabinet and LOCK it or rent a safety deposit box. Obviously, a safety deposit box is not as convenient as a file cabinet, but if you don't trust the people around, it is a great option. What kind of paperwork should you lock away from prying eyes?\n    1.  Credit card statements\n    2.  Pay stubs\n    3.  Bank statements\n    4.  Utility bills\n    5.  Tax returns\n    6.  Anything containing your Social Security Number\n*   **Get Your Name Off Mailing Lists.** The less paperwork being sent to your house with pre-approved credit cards, the better. Some identity thieves don't wait for those applications to get into the trash, they steal them right out of your mailbox. Here is an article on ways to get rid of junk mail.\nWhat if you have been the victim of identity theft?\n---------------------------------------------------\nThe first thing you should do is report it.  You can do so at the FTC’s website: [](about:blank).  The next steps:\n**Step 1 – Call the companies where you think fraud occurred**.\n*   Call the fraud department. Explain that someone stole your identity.\n*   Ask them to close or freeze the accounts. Then, no one can add new charges unless you agree.\n*   Change logins, passwords and PINS for your accounts.\n**Step 2 – Place a fraud alert on your credit report**.\nPlace a free, one-year fraud alert by contacting one of the three credit bureaus. That company must tell the other two.\n*   Experian.com\/help  \n    888-EXPERIAN (888-397-3742)\n*   TransUnion.com\/credit-help  \n    888-909-8872\n*   Equifax.com\/personal\/credit-report-services  \n    800-685-111\n**Step 3 – Get your credit reports**\nYou can get your credit reports for free by consulting our sources.\n**Step 4 – Report the fraud to the FTC**.\nComplete the online form or call 1-877-438-4338. Include as many details as possible.\n**Step 5 – File a police report.**\nGo to your local police office with:\n*   a copy of your FTC Identity Theft Report\n*   a government-issued ID with a photo\n*   proof of your address (mortgage statement, rental agreement, or utilities bill)\n*   any other proof you have of the theft (bills, IRS notices, etc.)\n*   FTC's Memo to Law Enforcement\n*   Tell the police someone stole your identity and you need to file a report.\n*   Ask for a copy of the police report. You may need this to complete other steps. END
 TITLE: How to Protect Yourself Fom Identity Theft CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Medical Identity Theft - Stolen Medical Records, ID Fraud CONTENT: Medical Identity Theft — Health Care Industry Needs Better Safeguards\n---------------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: _December 19, 2020__\nMedical identity theft has become more valuable to criminals than financial identity theft. With more and more of our medical information being digitized by health care providers, this information has become the target of computer and network hackers that break into these electronic records and steal these records. Found in these records are Social Security numbers, health insurance numbers, addresses, and patient names which can all be used to order goods and services (that are never delivered) and bill them to Medicare and Medicaid. These thieves can also corrupt medical records with erroneous information that can lead to incorrect diagnosis and treatment which impacts the entire health care system. Unfortunately, it is the fastest-growing crime in America.\nMedical identity theft is when another person utilizes your personal information to obtain prescription drugs, healthcare services, or even to collect money through fraudulent claims against your health insurance policy. Like other versions of identity theft, it can cause serious financial problems, not to mention an incredible hassle in your life which can go on for years. But in some ways, it's even worse. If an identity thief tampers with your medical records, your chart could have the wrong history and diagnoses. Imagine the wrong allergen or blood type information being listed, for instance, and as result medical ID theft can become a life or death situation.\nMedical Identity Theft Statistics\n---------------------------------\n*   **27% of data breaches** were related to medical records in 2017.\n*   **65%** **of victims** needed **almost $13,500** to pay off fraudulent bills.\n*   Of victims studied, **3% lost their jobs.**\n*   **23% purposely gave their healthcare info** to someone they knew, to help them out.\n*   Famil**y members committed 24%** of medical identity theft without their family’s knowledge.\n*   **Only 10% of victims** were completely satisfied with how their situation resolved.\n*   **30% of victims had no idea** when the identity theft occurred.\nThis same study goes on to say 29 percent of victims don't find out about the ID theft until a year later with 75 percent of victims finding it difficult to resolve the issues.\nHow do you do know if you were a victim of medical identity theft?\n------------------------------------------------------------------\nThe exact warning signs of healthcare identity theft will vary depending on the situation. Keep an eye out for the following:\n*   You get a bill for medical services you didn’t receive.\n*   You get calls from debt collectors about unfamiliar medical bills, or see medical collection notices that you don’t owe on your credit report.\n*   Your health plan informs you that you’ve reached your benefit limit, though you know that can’t be right.\n*   You’re denied insurance due to a condition on your records that you don’t actually have.\nDifference Between Medical ID Theft and Financial ID Theft\n----------------------------------------------------------\nVictims of financial identity theft typically have a more well-defined path to recovery than those whose medical identities are stolen. Unlike financial identity theft, there's no straightforward process for challenging false medical claims or correcting inaccurate medical records. If a thug steals your wallet and runs up your credit cards with expenditures, you should request that the three major credit bureaus provide you a free credit report, place a fraud alerts on your accounts, and work with your creditors to get inaccurate charges removed. Identity theft is often discovered early on the financial side because credit card issuers have sophisticated systems for detecting fraudulent use of credit cards, in addition to the fact that nearly all financial institutions use one or more of the three credit reporting agencies.\nWith medical identity theft, it's not that simple. Your medical records are likely to be interspersed among a number of different providers, and there's no merged or even single \"medical records clearinghouse\" that keeps them. Under HIPAA, the federal law that addresses medical privacy, you're entitled to a copy of these documents, though you may have to pay for it. If there's an error, you can add a correction to the record, but you can't have information deleted. And if you suspect you have been a victim of medical ID theft, healthcare providers may refuse to let you see your own record because once it's intermingled with another individual's record and ironically, that person's privacy must be protected.\nHow Does Medical Identity Theft Occur?\n--------------------------------------\nUncovering medical identity theft can be a true challenge. Most people never find out that they've been a victim of medical identity theft until they get a notice of an unpaid bill for medical care they never received. By then, it's too late, the damage has been done. Here are just some of the ways that thieves take advantage of unsuspecting victims:\n1.  **Insider Fraud.**  Medical ID thieves bill your health plan for fake or inflated treatment claims. The crooks often are employees inside the healthcare system who know how the insurance billing system works.\n2.  **Obtain Free Treatment.**  Medical ID thieves who don't have their own health coverage often receive free medical treatment, courtesy of your policy. They assume your identity at a hospital or clinic, and your policy receives the bills.\n3.  **Obtain Addictive Drugs.**  Medical personnel with access to your data may use your identity to obtain prescription drugs to sell, or feed their own addictions. Dishonest pharmacists might bill your policy for narcotics, or nurses may call in prescriptions in a patient's name but pick it up themselves.\n4.  **Organized Theft Rings.**  They buy stolen patient information on the black market, and set up fake clinics to bill insurance companies for payment on nonexistent treatment, or obtains medical equipment that it then sells on the black market.\nMedical Identity Theft Prevention\n---------------------------------\n1.  **Read the Explanation of Benefits, or EOB, statement** that your insurance provider sends you after you've received covered treatment. Confirm that the provider, date of service, and the service provided is correct, and of course that it was you. Amazingly, many people don't review these and they are a key early detection sign.\n2.  **Request a complete list of payments made from your health insurance company** on an annual basis and review it.\n3.  **Be Aware** when you are at the doctor's office or pharmacy. Just like when you are using a credit card, pay attention to who's nearby when you're giving the staff your insurance card. Don't leave it sitting on the counter in plain view for others to see.\n4.  **Shred documents** associated with your health insurance especially those containing your account number and personal information.\n5.  **Do a periodic check for discrepancies with the Medical Information Bureau (MIB).**  The MIB is analogous to a \"credit bureau\" but collects health-related personal information as opposed to financial, and has a comprehensive list of insurance companies that belong to it. Any time an individual applies for life or health insurance, this information is likely to be reported to the MIB.\n6.  **Get a current copy of your medical records** in case they are tampered with in the future.\n7.  **Exercise your right for a free annual copy of your credit report.**  Most medical ID theft is first noted when the claim makes the transition to the billing department. If you have an unpaid medical bill on your credit report that you don't recognize, you've probably been victimized.\nWhat to Do If You Are a Victim of Medical Identity Theft\n--------------------------------------------------------\n1.  **Call the authorities and file a police report.**  Be sure to send a copy of the report to your insurer, medical providers and all credit bureaus.\n2.  **Call your insurance company and report it.**  You will likely be put in contact with the fraud department, who should immediately disable your health insurance account, issue you a new card and account, and advise you through the process of dealing with any billing, collections or records issues that may have occurred.\n3.  **Request access to your medical records.**  If you suspect you're a victim of medical ID fraud, get a copy of your records from your doctor, hospital, pharmacy or laboratory. If you find errors in your medical files, have them corrected immediately.\n4.  **Contact the three major credit bureaus, your bank or financial institutions, and your credit card issuers.**  Inform them that your medical identity has been stolen. Place a fraud alert and credit freeze on your credit reports if you've been scammed.\n5.  **File a medical identify theft complaint.**  File with complaint with the Federal Trade Commission (FTC) or call the FTC's toll free hotline at (877) IDTHEFT.\n6.  **If you are refused access to your medical records, appeal.**  To appeal, follow the steps outlined in your medical provider's **notice of privacy practices**. If you still aren't satisfied, file a health-privacy complaint with the U.S. Department of Health and Human Services or call 1-800-368-1019.\nThere may serious consequences to medical ID theft; you could receive improper treatment because your medical records contain inaccurate information like the wrong blood type, test results that don't belong to you, treatment you never received, or diagnosis of an illness you don't have. If you've been a victim of medical identity theft, report it to your local police department and the Federal Trade Commission. You should place either a fraud alert or security freeze on your credit report to warn future businesses that you've been victimized. Finally, work with your insurance company and medical providers to clear your name of the charges. END
 TITLE: Medical Identity Theft - Stolen Medical Records, ID Fraud CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Information and Articles About Payday Loans CONTENT: Articles on Payday Lending — Predatory Lending, High Interest Rates\n-------------------------------------------------------------------\n###### Written by: Kristy Welsh\nYou might think getting a payday loan is fast and easy - which it is - but there is monster lurking underneath. Before you even think about going to one of those suspect offices requesting a payday loan, make sure you totally understand the risks involved. You just might wish you asked your mom for the money instead!\nUnderstanding Payday Loans — What is a payday loan? How does a payday loan work? Are there alternatives to payday loans? Answers to these and many other questions can be found here.\nPayday Loans be Cheaper than Checking Overdraft Fees? — See if it might be cheaper to bounce a check than taking out a payday loan.\nGet Out of Payday Loan Hell — It's bad enough having to go the route of getting a payday loan, but even worse is not being unable to pay back a payday loan. This is that slippery slope of payday loan hell — learn how to get out.\nMilitary Payday Loan Protections — Payday lending is rampant among military personnel for a number of reasons. Living on base with a family has it's challenges, which is why our service personnel fall victim to these expensive and easy loans. Get the facts.\nPayday Loans Can Cost a Small Fortune — Did you know some payday loans can have an interest rate of over 459 percent? Get the facts regarding these loans and the interest charged for this easy money. \nPaying Utilities With a Payday Loan — Low income, minority, elderly, and female customers are turning to payday loans to pay their utilities. Get the facts about this growing trend. END
 TITLE: Information and Articles About Payday Loans CONTENT:    |  |  |  | \n: . END
 TITLE: Pros and Cons of Enrolling in Identity Theft Protection CONTENT: Should You Pay For Identity Theft Protection?\n---------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: December 20, 2020_\nIt sounds so smart and safe — identity theft protection. But considering all you can do on your own to protect your identity, is it something worth paying for? Weigh the pros and cons first, then go with whatever feels most comfortable and practical to you.\n**Pros of ID Theft Protection Offers**\n--------------------------------------\n### **You can set it and forget it.**\nInstead of trying to remember to keep a watchful eye on things by yourself, you can pay an identity theft protection company to do it for you. If and when anything looks fishy, they’ll let you know about it.\n### **Their monitoring is comprehensive.**\nThey’re not just looking for red flags on your credit reports or bank accounts. You can pay an identity theft company to monitor all sorts of things for fraudulent activity. For example, you can get alerts when your social security number is used, or if any of your personal information appears in court records, medical records, change of address requests, payday loan applications, and more. They also monitor the dark web. The dark web is a part of the internet that isn't indexed by search engines. On it you can buy social security numbers and other personal information.\n### **They offer repair assistance in the event your identity is stolen.**\nIt may take dozens of hours over several months’ time to sort out the mess if and when your identity is stolen. You can choose an identity theft protection plan that includes help in the repair process.\n**Cons of ID Theft Protection Offers**\n--------------------------------------\n### **Costs can range from $85 to more than $350 a year.**\nAmong the top-rated identity theft protection companies, plans range from $6.99 a month to $29.99 a month – money you could be putting toward savings or paying down debt. You can always choose the cheapest plan, but then you’re getting fewer of the bells and whistles that make paid identity theft protection so attractive.\n### **Identity theft insurance can be misleading.**\nRead the fine print to see exactly what identity theft insurance covers. For instance, legal expenses and lost time from work may not be covered. Plus, there may be a deductible to meet.\nAlso, keep in mind that your liability is already limited for unauthorized credit and debit card transactions. You can also check with your home owners or renters insurance company to see if they offer identity theft insurance, which may be added for as little as $25 to $50 a year.\nId Theft may not be worth it.  For most victims there’d be no losses for insurance to cover. One 2015 report from the U.S. Department of Justice found just 13.8% of identity theft victims experienced any out-of-pocket losses at all — and just 6.1% experienced the indirect losses that identity theft insurance can cover. Of those who lost money, about half lost less than $100 total, while the median indirect loss was just $30.\n### **There’s plenty you can do for free.**\n1) Get free copies of your credit reports from all three major credit bureaus through AnnualCreditReport.com. You can even stagger them so you’re getting a look at your credit once every four months.\n2) Sign up for free credit monitoring with sites like Credit Sesame, and Credit Karma. Note, though, this will require providing them with the personal information they need to access your credit reports and scores.\n3) Monitor your checking, savings, and credit card accounts online.\n4) Remove your name from mailing lists, including credit card offers, junk mail, phone solicitation lists, coupon mailings, and more.\n5) Protect yourself online. Learn how to hide your IP address, encrypt your email connection, encrypt the content of your emails, shield your credit card number when making an online purchase, encrypt your connection with websites you visit, and more.\n6) Take care of everything yourself if you are a victim of identity theft. Contacting the authorities and place fraud alerts on your credit reports.\n### **There is no guarantee of identity theft prevention.**\nThe most expensive, comprehensive identity theft protection plan cannot guarantee theft prevention.\n**How to Choose an Identity Theft Protection Company**\n------------------------------------------------------\nIf you’ve weighed the pros and decided you’d like to try identity theft protection, shop around for the best deal first. Consumer Affairs is a good place to start. In their Identity Theft Guide you’ll find reviews of their best-rated identity theft protection companies, including LifeLock, Identity Guard, and IdentityForce. And don’t miss the section on protecting your kids – yes, they can be victims of identity theft, too!\nMajor Identity Theft Monitoring Companies\n-----------------------------------------\n**Name**\n**Monthly Fee**\n[Lifelock Identity Theft Protection](about:blank)\n$8.99\n[Identity Guard](about:blank)\n$8.99\n[IdentityForce](about:blank)\n$14.99\n[Experian](about:blank)\n$9.99\n[IdentityIQ](about:blank)\n$6.99\n[AllClearID](about:blank)\n$14.95\n[IDShield](about:blank)\n$17.95 END
 TITLE: Information on Student Loans | Financial Aid CONTENT: Info on Student Loans, Financial Aid, Loan Consolidation\n--------------------------------------------------------\n###### Written by: Kristy Welsh\nIf you have a child in high school that is thinking about going to college, or if you are a college graduate thinking about pursuing a master's degree, coming up with the money to pay for college is a daunting task to say the least. Every year tuition for out-of-state and in-state students continues to soar, making it harder and harder for families to send their kids to college.\nWe have put together some great articles covering everything from how to get a student loan to whether or not that degree in psychology is going to make you any money after graduation. Hopefully these article will provide you and your family with the information you will need to calm your fears about paying for higher education.\nStudent Loans, Financial Aid, Find Money to Pay for College\n-----------------------------------------------------------\nInformation on Student Loans — This article contains everything you need to know about student loans from how to apply for one to how to avoid defaulting on one. This is a must read if you are looking for money to pay for college tuition.\nFinancial Aid Shopping Sheet — Developed by the CFPB, this guide helps breakdown college costs and compares these costs to other colleges and universities.\nFederal Student Aid — As tuition costs continue to rise every year, financial aid is becoming more in demand to help defer these costs. See if it can help you pay for college.\nFinding Money For College — We have put together ten tips for finding scholarship money to pay for part or all of your child's college tuition.\nStudent Loan and College Guide — We put together a series of articles aimed at student loans and the best and worst college degrees.\nStudent Loan Consolidation — Avoid Defaulting on Your Student Loan\n------------------------------------------------------------------\nStudent Loan Consolidation — If you have more than one student loan, consolidating those loans might be a good idea. Read our article on the pros and cons of consolidating your student loans.\nHow to Avoid Student Loan Debt — Before you sign all those student loan papers, we have some ways you can minimize all of that student loan debt.\nStudent Loan Forgiveness — If you hold a public service job, see if you qualify for partial or total student loan debt forgiveness.\nHow to Avoid Defaulting on a Student Loan — Are you behind on your student loan payments? Before you let your loans go into default, we have some suggestions to help you out of this mess.\nAutomate Your Student Loan Payments — Ever forget to make your student loan payment? If so, you might want to try setting up automatic payments.\nBest and Worst College Degrees\n------------------------------\nDegrees Worth the Student Loan Debt — Will having a master's degree be worth all the debt you will incur? See our list of the degrees that are worth the debt.\nBest and Worst College Degrees by Salary — While most people would agree you should do what you love, here are the best and worst paying college majors. END
 TITLE: Information on Personal Loans - Auto Loans CONTENT: Information on Personal Loans, Small Business Loans, and Vehicle Loans\n----------------------------------------------------------------------\n###### Written by: Kristy Welsh\nOne of the main reasons for fixing your credit and increasing your credit score is so that you can be approved for a loan. It might be a loan for a car, a house, or an RV. Or maybe you want to borrow money so that you can start your own business. Whatever type of loan you might be after, it is imperative you have good credit so you are not only _approved_ for a loan, but also not subjected to an outrageous interest rate. \nTo get the best deal, shopping for a loan with the following in mind is key — fees, interest rates, terms and conditions, and contractual obligations. Whether you're looking for a personal loan or a small business loan, the following articles can help you find the right loan for you.\nPersonal Loans — Secured and Unsecured Loans\n--------------------------------------------\nUnsecured Personal Loans — As nice as it is to get a loan without having to put up any collateral, there are plenty of other things about unsecured personal loans that you need to concern yourself with. Get the facts about prepayment penalties, APR adjustments, loan insurance, and more.\nUsing Signature Loans As An Alternative to Credit Cards — Before you go charging up a bunch of new debt to your credit cards, find out whether a signature loan (also known as an unsecured loan) could get you a more affordable interest rate.\nSecured Credit Builder Loans — Think your credit it too bad to qualify for a personal loan? Then you don't know about secured credit builder loans. Find out how to find them and how to qualify.\nPeer-to-Peer Lending — Peer-to-peer lending is pretty much what it sounds like — individuals (investors) lending money to individuals (borrowers). Is this unconventional alternative for you?\nAdvantages to Using a Personal Loan — Do you have debt to pay off, a large expense to cover, or credit to build? Take a look at the advantages of using a personal loan.\nAvoid Being Denied a Personal Loan — While there is no guarantee of approval, there are plenty of things you can do to minimize the chances of being denied a personal loan. Make sure you know what they are.\nBorrow From an IRA or 401(k) With Caution — If you need money for a large, unexpected expense, you may be tempted to borrow from your IRA or 401k. Think twice about it. These options come with significant disadvantages that you need to know about first.\nTo Co-Sign or Not to Co-Sign, That is the Question — If a family member or a friend asks you to be a co-signer on a loan, use this co-signer's checklist to ask yourself five key questions before you commit to this credit-changing decision.\nVehicle Loans and Leases\n------------------------\nInformation on Auto Loans and Leases — Should you buy or lease a car? And either way, how do you get the best deal? This comprehensive collection of articles covers the basics of auto loans and auto leases, including what to do if your car is repossessed, how to extend an auto lease, and more.\nHow to Finance a Recreational Vehicle — Whether it's a lifelong dream or something more spontaneous, buying an RV is a huge financial decision that deserves in-depth consideration and research. This is a good place to start.\nThe Vicious and Costly Cycle of Title Loans — When you get into a tight financial spot, you have to make tough decisions. But these choices should not include a title loan. Get the facts about these costly loans that are never a good financial decision.\nSmall Business Loans\n--------------------\nSmall Business Loan FAQs — What is an SBA loan? How much can you borrow? What are the fees and interest rates? Get answers to these and other commonly-asked questions about small business loans.\nHow to Qualify for a Small Business Loan — Before applying for a loan through the Small Business Administration (SBA), find out what it takes to qualify. There's a long list of eligibility requirements, and an even longer list of things that could make your business _in_eligible.\nWhat is a Business and Industry Loan? — Is your business in a rural community? The USDA provides guarantees of up to 80 percent of a loan made by a commercial lender. Get the facts about the USDA Rural Development, Business & Cooperative Programs. END
 TITLE: Mortgage Calculator - Determine Your Monthly Mortgage Payment CONTENT: Mortgage Calculator — Calculate Your Mortgage Loan Payments\n-----------------------------------------------------------\n###### Written by: Kristy Welsh\nUse Our Mortgage Calculator and See Your Monthly Payment\n--------------------------------------------------------\nEnter the required information._We'll show you your monthly mortgage payment. It's that easy._\nThis is your principal + interest payment, or in other words, what you send to the bank each month. But remember, you will also have to budget for homeowners insurance, real estate taxes, and if you are unable to afford a 20% down payment, Private Mortgage Insurance (PMI). These additional costs could increase your monthly outlay by as much 50%, sometimes more.\nAre you tired of renting and throwing away money every month on something you don't own? Have you come to a point in your life when you are ready to buy a home of your own? If so, the next big question is how much home can you afford and what monthly mortgage payment will you be able to make each month.\nOur mortgage calculator lets you input the amount of money you plan to borrow, the length of the mortgage in years, and the interest rate. You will then be presented with your monthly mortgage payment based on that information. The biggest factor in buying a house is the interest rate and that depends on how good or bad your credit score is. So, if you are set on buying a house for $250,000 but your credit is bad, you are going to qualify for a loan with a much higher interest rate than say someone with excellent credit. Our advice, if you are thinking of buying a home in the next 6 months, start repairing your credit and increasing your credit score. This way, you will qualify for a lower interest rate which will save you thousands of dollars in interest each year. END
 TITLE: Mortgage Calculator - Determine Your Monthly Mortgage Payment CONTENT:    |  |  |  | \n: . END
 TITLE: Articles on Mortgage Loans, Short Sales, Foreclosures, Loan Mods CONTENT: Information on Mortgage Loans, Short Sales, and Foreclosures\n------------------------------------------------------------\n###### Written by: Kristy Welsh\nTypes of Mortgage Loans\n-----------------------\n\"A\" Paper Loans (aka Prime Loans) — To get the best interest rates, you need what’s called an \"A\" paper loan, or prime loan. Get the facts about qualifying criteria, including payment history, income, debt-to-income ratio, down payment, and credit score.\nBalloon Loans — We tend to overestimate how much more money we’ll be making in the future. Thus, the danger of the balloon loan. In exchange for lower monthly payments, you make a big lump sum at the end of the loan. What happens if you can’t?\nAdjustable Rate Mortgage Loans — Before you sign on to an adjustable rate mortgage, make sure you understand how lenders use an _index_ to adjust rates, how they add a _margin_ on to the index, and how _caps_ keep rates from skyrocketing.\nReverse Mortgage — If you are 62 or older, and your home is paid off, you may want to consider a reverse mortgage for extra cash you need to cover retirement or medical expenses. Find out if this alternative to selling your home is right for you.\nLoan Modification — Are you unable to make your monthly mortgage payments? Before you consider foreclosure, find out if you qualify for loan modification to change the terms of your loan.\nHow to Apply for a Loan Modification — Before you approach the bank about a loan modification, find out how to do it right. Get tips on writing your letter of hardship, including how to decide what kind of modification to ask for.\nVA Loans — Are you a veteran? Get the facts about the Veteran Affairs Home Loan Program, including service requirements, the benefits of a VA loan, limitations on benefits, and the VA loan process.\nFHA Loans — Are you unable to qualify for a conventional mortgage loan? You might want to think about applying for an FHA loan. Check out types of FHA loans and underwriting guidelines.\nUnderstanding a Mortgage Loan\n-----------------------------\nDetailed Descriptions of Mortgage Loan Fees and Costs – Title search? Land survey? Document preparation? Appraisal? Inspection required by lender? All of these come at a price. See a detailed explanation of these and more than a dozen other mortgage loan fees and costs. \nWhat is the Real Cost of Your Loan? — Ever wonder how a mortgage broker makes their money off the deal? Find out.\nHidden Costs of a Mortgage Loan — Besides the upfront costs of a mortgage loan, beware of the hidden costs some lenders try to add to your home loan.\nWhat is PMI and Mortgage Points? — Two of the most important mortgage costs to understand are Private Mortgage Insurance (PMI) and mortgage points. Get the facts.\nTruth in Lending Statement — Within 3 business days of receiving your loan application, mortgage lenders are required to provide you with a breakdown of every cost associated with your loan. Learn more about the Truth in Lending Statement.\nUniform Settlement Statement — Right before closing, lenders are required to disclose your true interest rate and costs in the Uniform Settlement Statement, also known as the HUD-1 Form. Get the facts about this itemization of charges.\nBroker vs. Banker — Should you use a mortgage broker or direct lender (e.g., bank, credit union) to buy a home? Weigh the pros and cons of broker vs. banker.\nWhy Does the Bank Keep Selling My Loan? — Do you keep getting notices in the mail that a new lending institution now controls your loan? Find out why.\nHow Your Credit Affects Your Mortgage Loan\n------------------------------------------\nShould You Apply for a Mortgage with Bad Credit? — Having bad credit does not mean you cannot buy a house. That said, it doesn’t mean it’s a good idea, either (or that you will even qualify). Weigh the pros and cons before you decide.\nHow to Improve Your Credit Before Applying for a Mortgage — While you may be able to buy a home with bad credit, it might be a better idea to improve your credit first. Get tips on the difference you could make in as little as 6 months’ time.\nThe Basics of \"A\" Credit — \"A\" credit, also known as Tier 1 credit, is the credit you need to qualify for the best interest rates. Take a look at factors that contribute to this prime credit rating.\nForeclosure Alternatives — Yes, you do have options. Could any of these foreclosure alternatives work for you – forbearance, short sale, deed in lieu of foreclosure? Find out.\nShort Sale As an Alternative to Foreclosure — If you are upside down on your mortgage, a short sale might be a good foreclosure alternative.\nWill You Owe Taxes on a Mortgage Settlement Payment? — If you were affected by illegal mortgage loan servicing from January 1, 2009 to December 31, 2010, and you received a cash settlement — unfortunately, these payments were considered income for which borrowers were expected to pay income tax.\nHow to Get Relief Through the \"Hope Now\" Initiative — President George W. Bush announced this initiative in 2007 as a means of helping homeowners who are upside down on their mortgages. Find out if the Hope Now Initiative can help you.\nMortgage Relief Scams — The further you fall behind on your mortgage payments, the more desperate you get for mortgage relief. Unfortunately, scammers are ready and waiting for you. Watch out for these red flags.\nWhat Can Affect Your Mortgage Loan?\n-----------------------------------\nUnderwriting Guidelines — How likely are you to make on-time monthly mortgage payments? That’s what a bank wants to know when deciding whether to lend to you. Get the facts about underwriting guidelines, including type of income, debt and liabilities, credit history, bank accounts, and debt-to-income ratio.\nLocking in Your Mortgage Interest Rate — Are you worried about interest rates going up while you’re waiting on your mortgage to be approved? Find out how to lock a loan.\nPaying Off Your Mortgage Early — You can save thousands in interest fees by paying off your mortgage early. Get tips on making extra payments, including the dollar-a-month plan, bi-weekly payments, the 15-year switch, lump sums, and making extra payments at the beginning of your mortgage.\nHelpful Tools When Buying a Home\n--------------------------------\nHomebuyer's Dictionary — What’s an acceleration clause? Earnest money? General warranty deed? Find definitions to these and dozens of other need-to-know terms in our homebuyer’s dictionary.\nMortgage Calculator — How big of a mortgage can you afford? Break it down with our free mortgage calculator. Enter the amount borrowed, length of mortgage, and interest rate to figure your monthly payments.\nNeed more information on buying a home? Check out our helpful articles on Real Estate. END
 TITLE: Investments, Retirement Plans, Personal Finance, Money Advice CONTENT: Investment Articles and Investing for Retirement\n------------------------------------------------\n###### Written by: Kristy Welsh\nA good retirement account depends on making good investments in the years prior to retirement age. Obviously, the sooner you start making these investments, the better. But whether you are in your twenties or in your fifties, it is never too early or too late to get started. It’s always a good idea to talk to a qualified financial advisor before you make any investment decisions. But this collection of articles about investment opportunities and retirement accounts is a good place to start for general information on what might work best for your financial situation and investment portfolio.\nInvesting for Retirement\n------------------------\nUsing a Self-Directed IRA When Investing — Want more control over your investments? Get the facts about a self-directed IRA, including how to select and set one up, contribution limits, prohibited transactions, and more.\nTarget Date Retirement Funds Pros and Cons — A target date retirement fund is just what it sounds like – a fund that aims to maximize your investments by a specific retirement target date. Get the facts about this one-size-fits-all approach.\nWhat Happens When Pension Plans Terminate — It’s not at all unusual for a pension plan to terminate. Find out the circumstances under which this happens, how it affects you, and what (if any) action you need to take.\nLimits When Contributing to Retirement Savings Plans — Check out this easy-to-understand breakdown of how much you can contribute to a 401(k) and IRA retirement savings account.\nTips on Finding a Good Financial Planner — Finding a competent professional to help you manage your investments is crucial to a successful portfolio. Learn how to find a financial planner and the differences among commission-based, fee-based, and fee-only compensation.\n401(k) and IRAs\n---------------\nPainless 401(k) Investing for the New Hire — Learn how to set up a 401(k) at your new job. Get the facts about automatic enrollment, automated investment management, target date funds, and more.\nHow and Why to Rollover a 401(k) — If you leave an employer, you should take your 401(k) fund with you.  Learn how and why you should roll over your 401(k) account.\nThings to Know About 60-Day Rollover IRA Loans — You can use the 60-day rollover option to borrow against your IRA, if you are in dire need of money. However, it’s important to carefully understand the IRA rollover rules and have a repayment plan in place.\nTypes of Investments\n--------------------\nStocks — Why do companies issue stock? What determines the price of a stock? How do stockholders make or lose money? What’s the difference between common and preferred stocks? Get answers to these questions and other stock basics.\nBonds — Adding bonds to your investment portfolio can be a good alternative to more risky investments. Learn the types of bonds, how to buy them, and how the bond market works.\nCDs (Certificates of Deposit) — What are your CD options? Are they federally insured? How do you open a CD account? Should you go through a deposit broker? Get answers to these and other commonly-asked questions about certificates of deposit.\nMoney Market Accounts — How do you open a money market account? Is there a minimum balance requirement? How much interest can you earn? Get answers to these and other commonly-asked questions about money market accounts.\nMutual Funds — Investing in mutual funds is the most popular investment vehicle for small investors. Find out what to look for in a mutual fund, where to find one, the minimum required investment, associated fees, and more.\nGold — What determines gold’s value? Will your money be safe if the dollar loses its value? What percentage of an investment portfolio should be in gold? How do you buy it? Get answers to these and other commonly-asked questions about investing in gold.\nCryptocurrency — Whatever your opinion of cryptocurrency, it’s hard to ignore this investment trend. Get the facts about how cryptocurrency works, buy and sell limits, how it’s taxed, and when you should think twice about this risky investment. END
 TITLE: Budget Advice - How Much to Save for Retirement|CreditInfoCenter CONTENT: Articles on Budgeting and Saving Your Money\n-------------------------------------------\n###### Written by: Kristy Welsh\n_Budgeting_ is often treated like a dirty word, and _saving money_ doesn't get treated much better. But if you want to make money work for you, a budget and savings plan cannot be ignored. And if your credit is suffering, understand that no credit recovery plan is complete without learning money management. We're not talking Ebenezer Scrooge here. Just a little mindfulness over where your money is going and saving some of it for your future — retirement, travel, a down payment on a home or car, medical expenses, and unexpected events life may throw at you. The following articles on budgeting and saving can help, as well as sections on personal finance basics and banking accounts.\nPersonal Finance Basics\n-----------------------\nHow to Makeover Your Personal Finances — Do you tell your money what to do, or is it telling you? If you don't feel in charge, your personal finances need a makeover. Let us walk you through it.\nHow to Change Your Money Mindset — Are negative thoughts about money making your financial situation worse? Change your money mindset by learning how to counter negative beliefs with positive affirmations.\nHow to Stop Living Paycheck to Paycheck — If you struggle to make ends meet on a regular basis, it's time to find a new normal. Get tips on how to stop living paycheck to paycheck, including goal setting, budgeting, and debt management.\nHow to Talk About Money with Your Partner — Talking about money doesn't come easy to most of us, and can be especially challenging in a romantic relationship. Get tips on how to make the money talk fun and effective.\nSneaky Tactics Retailers Use to Spend Your Money — It feels good finding a good deal that saves you money. Just be on the lookout for \"deals\" that actually make you spend _more_ money. Get the facts about free shipping, buy-one-get-one-free, and more.\nRecognizing the Signs of Too Much Debt — How many of these signs do you recognize? And what can you do about it if you do, indeed, have too much debt?\nHow to Create More Disposable Income — Want more disposable income to spend or save as you choose? Find out how adjusted tax withholdings and 401(k)s can help.\nSharing Economy 101 — The sharing economy is also known as collaborative consumption. Learn how people make money, save money, and promote sustainability with peer to peer business.\nFinancial Awareness Campaign Calendar — Teach Children to Save Day. American Saves Week. Financial Literacy Month. Mark your calendar for these and other campaigns for financial education and inspiration all year long.\n### Financial Advisors\nWhen You Should Talk to a Financial Advisor — While you can certainly manage your finances on your own, check out this list of major events in life when you should seriously consider talking to a financial advisor.\nHow to Find a Good Financial Planner — It's one thing to decide you need a financial planner, and quite another to find a good one. Get the facts about fee structures and where to start your search.\nMillennials Guide to Financial Advice — Nearly a quarter of Millennials don't trust anyone for financial advice, yet nearly 40 percent worry about their financial future. If you're among them, get ideas on where to turn for the financial advice you need.\nBudgeting Your Money\n--------------------\nBasics of Budgeting — If you don't have a budget, or the one you do have isn't working, it's time to get back to basics. Get the facts.\nDetailed Guide to Budgeting — Beyond the basics, this 3-part detailed guide will walk you through the steps to creating, managing, and tweaking this elusive tool.\nHow to Use the Zero-Sum Budget — If you find yourself wondering where all your money goes, chances are you could use the zero-sum budget. There's no question where your money is disappearing to because you tell every dollar where to go.\nHow to Repair Bad Credit on a Budget — Contrary to what you may have heard, you need not pay an expensive company to repair your credit for you. Credit repair is absolutely within your budget when you DIY. Here's how.\nHow to Create a Holiday Budget — Why should the most joyous time of year be the source of so much financial stress? Learn how to create a holiday budget so you can save sanely before the holidays and be free of holiday debt in the New Year.\nValentine's Day on a Budget — There are plenty of ways to show someone you care without breaking the bank. In fact, the less you spend, the more creative you have to get, which usually translates into more meaningful gifts. See a list of possibilities.\nHow to Live Big on Any Budget — Think living on a budget means sacrificing fun? Not a chance with a list like this to live by.\nSaving Your Money\n-----------------\nWays Americans Waste Money — From ATM fees, to interest rates, to the type of car you drive, you may not realize all the ways you are wasting money on things. See common ways Americans waste money and get tips for saving on these things instead.\nMyths About Saving Money — Preconceived ideas keep us from doing all sorts of things, saving money among them. Don't let these myths hold you back from the financial security you need and deserve.\nHow to Automate Your Savings — The more often you have to _decide_ to save money, the more often you won't. Make the decision once with automated savings so you can set it and forget it.\nHow to Save $500 for Christmas — Whether you're supplementing an existing fund or starting from scratch, there are plenty of things you can do to save $500 for Christmas. Finding a way to make extra money is great, but these ideas utilize money you're already making. Do the math and see how much you could save.\nHow to Save Money with Coupons — It might be old-school, but coupon cutting is still an effective way of saving money. Find out how to find the best coupons, the best places to use them, how to keep them organized, and more.\nTeaching Your Kids How to Save Money — With financial education notoriously lacking in our schools, it's up to parents to pick up the slack. Get practical tips on teaching kids money-saving habits that they can practice now and carry into adulthood.\nFind Unclaimed Money and Property — Believe it or not, there could be money floating around out there with your name on it, from utility deposits, to undistributed wages, to life insurance policies. Check out our state-by-state list of websites that can help you find this unclaimed money (or property) that you can put toward your savings goals.\n### Saving Money for Retirement\nQuestions to Ask When Setting Your Retirement Savings Goals — Whether you're just starting to save for retirement, or you've been at it for years, make sure it's _informed_ saving. What do you really want and need for your retirement years?\nCalculating How Much You Will Need to Retire — It is impossible to know with any certainty exactly how much money you'll need for your retirement years. But you can get close by doing some simple calculations. Here's how to do it in eight steps.\nDeciding Whether to Save for Retirement or Pay Off Loans — If you save for retirement first, you're losing money on interest fees paid on outstanding debt. If you pay off debt first, you're missing out on interest you could be _earning_ on retirement accounts. Get the facts you need to decide what's right for you.\nHow to Plan for an _Early_ Retirement — Whether you want to retire 2 years early or 10, there are things you can do to make this dream a reality. Take a look at everything you should be considering to get the job done.\nRetirement Savings Challenges for Women — As long as there is a gender pay gap, there will be a gender _savings_ gap. Get the facts about the challenges women face when saving for retirement and what to do about it.\nRetirement Savings Strategies for Single People — If you live alone, there's no one to split the bills with or pick up the slack if you lose work. This can make saving for retirement difficult. Get tips on how to make it work.\nMost Affordable Places to Retire — Are one of these cities on your retirement list? Maybe they should be. Check out the median housing price, population, and pros and cons of the top 20 most affordable places to retire.\nMoney Matters to Consider When Retiring Abroad — Though the cost of living may be lower, retiring abroad comes with unique financial considerations that should not be overlooked. Get the facts.\nWhy Today's College Grads May be Retiring Later in Life — Burdened with overwhelming student loan debt, today's college graduates will be especially challenged to save for retirement. That will likely mean retiring later. Get the facts.\n### Managing Your Retirement Savings Accounts\nHow to Manage Your Retirement Savings — Your retirement nest egg will only be as big as your understanding of how to grow it. Learn how to effectively manage your retirement money with a 401(k), IRA, or Roth IRA.\nUsing a Self-Directed IRA as a Retirement Investment Strategy — Unlike a traditional IRA, for which you have no control over investment decisions, a self-directed IRA gives you choices. Get the facts about self-directed IRAs, including how to set one up, contribution limits, and transaction restrictions.\nHow to Access Your Social Security Account — The Social Security Administration no longer sends out yearly statements, but you can access the same information online via my Social Security.\n### Saving Money for Medical Expenses\nHow to Use a Medical Savings Account (MSA) — How do you qualify for an MSA? What's the max you can contribute annually? Does it move with you if you change employers? Under what circumstances can you withdraw tax-free funds? Get answers to these and more commonly asked questions about medical savings accounts.\nHow to Use a Health Savings Account (HSA) — How do you qualify for an HSA? Who makes payments into your HSA? What's the max you can contribute? How do you make withdrawals, and under what circumstances are they tax-free? Get answers to these and more commonly asked questions about health savings accounts.\n### Saving Money for College\nTips on Saving Money for College — Decreasing disposable income is making it increasingly difficult for parents to save money for their kids' college education. Find out how college savings plans and Roth IRAs can help.\n529 College Plans: The Basics — How much do you need to open one? What expenses are covered by these plans? Are they really tax-free? Get answers to these and other commonly asked questions about 529 college savings plans.\nSurvey of Parents: Where Will College Money Come From? — Nearly 90 percent of parents surveyed believe college is an important investment for their kids. But the \"savers\" among those surveyed have very different ideas than the \"non-savers\" about where the money is going to come from.\nOpening a Savings or Checking Account\n-------------------------------------\nWhat to Do If You Don't Have a Bank Account — Millions of Americans are _unbanked_ or _underbanked_. Reasons for this vary, from deliberate avoidance of the banking system to a poor ChexSystems score. Whatever the case, get tips on alternatives.\nHow to Bank for Free — Think banking fees are a giving these days? Think again. Find out how direct deposit, multiple accounts, minimum balances, and text alerts can help.\nReasons to Open an Online Checking Account — Don't need a brick and mortar building to do your banking? Then you might want to switch to an online banking account for benefits that brick-and-mortar doesn't offer. Weigh the pros and cons.\nNon-Bank Banking Options — Interested in alternatives to a traditional bank account? Consider the pros and cons of credit unions, money market mutual funds, and cash management accounts. END
 TITLE: How Much Do You Need to Retire? CONTENT: Eight Steps to Calculate How Much You Need to Retire\n----------------------------------------------------\n###### Written by: Kristy Welsh\nIt is estimated that fewer than half of all Americans have ever tried to determine how much money they will need in the bank in order to retire comfortably. With the public and private pension systems in trouble, and Social Security benefits not being able to keep up with inflation, saving for retirement is your business alone. You will need to figure out how much you will need in your retirement fund and how to get to this amount.\nThe question of how much you need to retire may have a simple answer, but it is not the same for everyone. That's why any blanket statement for how much you need to retire should be taken with a grain of salt. It all depends on your living expenses now and how you expect them to change (or not) by retirement age.\nThere is an array of online retirement calculators that can help you sort this out, but instead of blindly trusting the results, you are best-served having a basic understanding of all that should be factored in so that you can make mindful financial decisions accordingly. The top key considerations are:\n*   **Life Expectancy:**  The Society of Actuaries estimates that for a married 65-year-old couple, there is a 45 percent chance of one person reaching 90 and a 20 percent chance one will reach 95. Plan for a long life.\n*   **Medical Costs:**  EBRI estimates that a 65-year-old couple in 2019 that does not have any employer-provided health benefits will need $450,000 to have a 50 percent chance of funding health care expenses not covered by Medicare. Even with employer benefits, there is a 50 percent chance that out-of-pocket expenses will reach $268,000.\n*   **Inflation:**  Over 30 years, expect inflation to cut your spending power in half. You would need nearly $12,000 today to match the spending power of $5,000 in 1982.\n*   **Investment Style:**  You may never reach your number if you hide from stocks. Bond yields and short-term interest rates are so low that, adjusted for inflation, you may get little or no growth for years.\n*   **Savings Rate:**   A good rule of thumb is saving 15 percent of income each year throughout your working life.\nEight Easy Steps to Calculate How Much You Will Need to Retire\n--------------------------------------------------------------\n1.  Assume you will need just as much per year as you are living on now. Yes, conventional wisdom holds you will need 70 to 80 percent of your income in your retirement years. However, most people grossly underestimate how much they need for retirement. Even though there are expenses you can expect to fall off by retirement age (see Step 2), other expenses will inevitably materialize to balance things out.\n2.  Subtract from your current annual living expenses those costs that you know will drop off by retirement age. These expenses may include:\n    *   Retirement savings\n    *   Mortgage payments\n    *   College tuition\n    *   Student loans\n    *   Credit card debt\n3.  Add in any costs for health care you expect to incur at retirement age, such as long-term care insurance.\n4.  Adjust your annual retirement-age living expenses for inflation, at 3.5 percent per year.\n5.  Subtract from your annual retirement-age living expenses (adjusted for inflation), the amount you expect to receive from social security and your pension (if applicable).\n6.  Whatever the difference — after subtracting social security and pension — is how much you will personally need to cover via your retirement savings plan.\n7.  Determine your life expectancy based on your family history and personal health. Then multiply the number of years you expect to live in retirement by the annual amount of money you are personally responsible for covering. For instance, if you retire at 65 and expect to live to be 95, you need to save enough money to cover 30 years of retirement. If, after all of your calculations, you determine your retirement-age living expenses are $50,000 a year, but your social security and pension cover $20,000 of that, then your savings plan must provide for $30,000 a year. This means you need to have $900,000 in savings by the time you are 65. Note: A quick and easy way to determine your needed retirement savings is the “multiply by 25 to withdraw 4%” rule. Once you determine your needed funds each year, multiply by 25. Each year, you can withdraw 4% of your funds without running out of money.\n8.  Considering your age now, figure out how much you need to set aside per year — between now and 65 — in order for you to meet that goal. Then divide that number by 12 to determine how much you should be depositing each month into your retirement savings account.\nWhatever you do, don't let the enormity of your retirement savings goal overwhelm or discourage you. If the amount you \"should\" be saving is not practical or possible, then simply do your best. What's more important is that you save consistently and aggressively from this point forward. Find more information on budgeting and saving your money here. END
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 TITLE: How to Use Coupons to Save Money CONTENT: Using Coupons Can Save You Money\n--------------------------------\n###### Written by: Kristy Welsh\nCoupons are a great way to save money at the grocery store, for buying everyday household items, to use when eating out, fixing your car, or swapping them out with friends. Finding and using coupons is easy once you master all the ins and outs. You can find coupons in the local Sunday paper and on mobile phone apps. With more ways to locate and organize coupons, coupon hunting has never been easier. It is so easy, even a caveman can do it!\nThe average American family spends between $500 and $1,100 every month on groceries, toiletries, cleaning products, pet items, clothes, and simple entertainment costs. You know you can make some sacrifices to get from the high-end of that range to the low-end. But can you really reduce or even eliminate some of these costs without giving up on good nutrition and hygiene? You absolutely can!\nStatistics for Using Coupons\n----------------------------\nIf you think coupon clipping is just for the over 60 crowd, you are in for a surprise. The fastest growing age market are those in their 20's and 30's and this age group is looking to use mobile or digital coupons. Here are some other interesting coupon statistics:\n*   142 million Americans used coupons in 2020.\n*   In 2020, 88 percent of survey respondents in the United States stated that they had used coupons for shopping, a decrease of six percent compared to the previous year.\n*   Over 90% of all consumers have used coupons in some way.\n*   Over half of all consumers use a coupon in at least one of every four purchases\n*   Approximately **31 billion** **digital coupons** were redeemed worldwide in 2019.\n*   321.3 billion manufacturer-funded coupons were distributed in 2015\n*   85% of American adults used coupons in 2014, and this figure grew to 93.75% in 2019. \nHow to Find the Best Coupons\n----------------------------\nFinding and using coupons to save money does not have to be complicated, but it may take some planning, patience, and perseverance. With prices on everything from produce to meat on the rise and increasing prices for dining out, shoppers are expected to clip even more this year.\nAlong with finding coupons in the local Sunday paper, be sure to check out these online coupon sites:\n*   Coupons.com\n*   eclip.com\n*   ValPak.com\n*   The Krazy Coupon Lady\n*   P&G site (get coupons from one of the world’s largest manufacturer of house hold products)\nCoupon apps:\n*   **Honey** – A pretty slick way to get discounts is Honey.  This app can be installed using a browser extension where the app searches for coupons every time you make a purchase online.  If you go gold, you can earn cash back.  Honey is 100% free.\n*   **iBotta** – similar to Honey, iBotta installs as a browser extension and automatically saves you money during online purchases. \n*   **Rakuten**–  Another app you can install on your browser that automatically finds coupons at checkout.\n*   **Retail Me Not** – They have an app and also a browser extension that operates like the other three above.\nUsing Coupons at the Grocery Store\n----------------------------------\nThis is the most obvious place to save money with coupons. The biggest secret of people who save the most at the store are those who match coupons with loss leaders — those heavily discounted items they feature in their ads in order to get you through their door. \nHere are four money-saving grocery apps that you can download to your mobile phone:\n1.  Coupon Sherpa — The Coupon Sherpa app lets you sort through categories to find online coupons that can be scanned straight from your phone. This free app also lets you create favorites lists where you can tag your favorite stores and email coupons to friends and family.\n2.  Your Grocery Store apps.  Kroger, Albertson’s, etc.\n3.  Shopper Pro — The Shopper iPhone app is a basic application that draws up a grocery shopping list on your phone. To add a little more functionality, it also calculates sales tax and tracks coupons.\nSave Money When Dining Out\n--------------------------\nArticles about the frugal lifestyle usually recommend always cooking at home. This is an obvious way to save money, but sometimes you need a treat or a break from the kitchen. You can save money eating out by purchasing an Entertainment Book, clipping coupons from your local paper, or going to Groupon.com. Also, some of the apps that we mentioned above have coupons to the major restaurant chains, most notably Retail Me Not.\nWhile saving is good, what about eating for free? If you sign up for the mailing list on the website of your favorite restaurant, many offer free food for your birthday. Also, keep an eye out for restaurants that offer \"kids eat free\" during some weekday nights.\nDiscount Coupons for Car Maintenance\n------------------------------------\nYou may never have to pay full price for an oil change or any other routine service on your car again. Look for coupons in the mail from the local franchises and dealerships, where you can save $10 or more off the normal cost of an oil change. If you're going in for warranty work on your vehicle, some dealers will change the oil — and wash your car — free of charge.\nSwap Coupons with Friends\n-------------------------\nDo you often find coupons for things you just don't use — such as diapers, frozen meals or a certain brand of shampoo? Consider starting a local coupon exchange club. Get together with a few friends once a month, clip all the coupons you can find and swap the coupons you don't need for the ones you want. You can also find coupon exchanges online, such as Flyertalk.com.\nOrganizing Coupons\n------------------\nIf you aren't using your smart phone to store and organize your coupons, here are some ideas to keep your coupons in order and easy to get to:\n*   Buy or make a coupon organizer; use envelopes, folders with labels, or a virtual coupon organizer.\n*   File and store them in your coupon organizer by expiration date, product, or alphabetical order.\n*   Keep your coupons with you in your purse or car so that they are available during those \"unplanned\" errands.\n*   Make an effort to use those with shorter expirations periods more quickly.\n*   Try coupon apps that automatically save and categorize your coupons.\nOf course, doing all these things sounds great in theory, but the efficient use of coupons and finding the best bargains on food\/staples each week takes time. And, for each of us, the \"time value of money\" is different. If you have to go to 5 different stores to get the best deals, you have to factor in your time and gas costs, which without a doubt can make or break a good deal. So it is up to you to find your happy balance. Good luck and happy clipping! END
 TITLE: How to Use Coupons to Save Money CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Articles on Consumer Protection - Laws Protecting the Consumer CONTENT: Articles About Consumer Protection Laws and Agencies\n----------------------------------------------------\n###### Written by: Kristy Welsh\nIf you want to protect your consumer rights, you need to know a couple of things: 1) what your rights are, and 2) the agencies that can help when your rights have been violated. Below you'll find links to consumer protection laws in their entirety, as well as articles that provide a summary of these laws. Government agencies tasked with _protecting_ your rights include the Federal Trade Commission (FTC), the Bureau of Consumer Protection (a division of the FTC), and the Consumer Financial Protection Bureau (CFPB). Find links to their official websites below, as well as articles that provide a detailed breakdown of these protections.\nFair Credit Reporting Act (FCRA)\n--------------------------------\nFair Credit Reporting Act — Read the FCRA in its entirety, a federal law enacted in 1970 to regulate the collection, dissemination, and use of consumer information, including consumer _credit_ information.\nQuick Guide to the Fair Credit Reporting Act — Read highlights from the FCRA, including major rights afforded by the FCRA, the responsibility of data furnishers, how the credit dispute process works, and more. Also includes a list of FCRA amendments.\nFair and Accurate Credit Transactions Act — Get the facts about this addition to the FCRA, including how it helps prevent identity theft, improves consumer dispute resolution, affects your access to your credit reports, and incorporates the Patriot Act.\nFair Debt Collection Practices Act (FDCPA)\n------------------------------------------\nFair Debt Collection Practices Act — The FDCPA was enacted in 1978 to establish legal protection from abusive debt collection practices. Learn what your rights are as a consumer and what to do if a debt collector has violated your rights.\nFDCPA Violations: A Summary of What Debt Collectors Cannot Do — Get the facts about what debt collectors cannot do when they are trying to locate you, collect a debt from you, take legal action against you, and more.\nConsumer Credit Protection (15 U.S. Code Chapter 41)\n----------------------------------------------------\nConsumer Credit Protection Act — Since 1968, the Consumer Credit Protection Act (CCPA) has been protecting consumers against credit abuses. This law includes many other credit protections through the Truth in Lending Act, Fair Credit Reporting Act, Wage Garnishment Law, Equal Credit Opportunity Act, Fair Debt Collection Practices Act, Electronic Funds Transfer Act, and Credit Repair Organizations Act.\nTruth in Lending Act — The TILA was enacted in 1968 as Title I of the Consumer Credit Protection Act. Since that time, numerous amendments have been added to make sure lenders are disclosing all vital information regarding your credit account. Lean more about what lenders are legally required to tell you.\nEqual Credit Opportunity Act — Enacted in 1974, the ECOA protects consumers from credit discrimination based on sex, race, religion, marital status, age, or national origin. This act spells out what a creditor can and cannot do so it is imperative you understand your legal rights as a consumer.\nElectronic Funds Transfer Act — The transferring of money electronically comes with one major flaw — the lack of a paper trail or documentation that the transfer actually was completed. That is why the Electronic Funds Transfer Act is so important and one that provides consumer protection when transferring money electronically.\nWage Garnishment Law Title III — Get the facts about Wage Garnishment Law (Title III) of the Consumer Credit Protection Act. When can your wages can be garnished, how much they can take, and how can you avoid it?\nTelemarketing Sales Rule\n------------------------\nFTC Takes Three Telemarketing Payment Methods Off the Table — Three payment methods that scammers previously used to dupe consumers are now illegal. Get the facts about cash-to-cash wire transfers, cash reload mechanisms, and remotely created payments.\nFTC Rules and Regulation for Debt Consolidation Companies — In 2010, the FTC amended the Telemarketing Sales Rule to include debt relief rules. Get the facts about upfront disclosures, upfront fees, savings estimates, and more.\nFTC and Bureau of Consumer Protection\n-------------------------------------\nFederal Trade Commission Official Website — In 1914, President Woodrow Wilson signed the Federal Trade Commission Act, which created the FTC. It's mission? To protect consumers and promote competition. Visit the official FTC website for consumer rights information and how to file a complaint if your rights have been violated.\n5 Things You Should Know How to Do Through the FTC — Filing a consumer complaint is just one of many things you can do through the FTC. You can also file an identity theft report, order free publications, and find links for adding your name to the do-not-call registry and ordering credit reports.\nBureau of Consumer Protection Official Website — As a division of the FTC, the Bureau of Consumer Protection collects complaints, investigates, and sues companies for unfair, deceptive, and fraudulent business practices. Learn more about their important work.\nConsumer Financial Protection Bureau (CFPB)\n-------------------------------------------\nConsumer Financial Protection Bureau Official Website — The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 established the CFPB. This regulatory agency oversees financial products and services, enforcing laws and educating consumers. Visit the CFPB website for all sorts of invaluable information.\nHow to Submit a Complaint to the CFPB — If you are having a problem with a financial product or service, submit a complaint to the CFPB. Here's how.\nHow to Use the CFPB Consumer Complaint Database — Before you apply for a loan or credit card, search for the company in the CFPB's consumer complaint database. You can also search for complaints about credit reporting, credit repair, debt collection, and more.\nFree Credit Score Initiative — Unlike credit reports, the law does not require that credit scores be provided for free. Thus, the importance of the CFPB's free credit score initiative, encouraging credit card issuers to provide credit scores to their customers.\nFinancial Education for Children and Adults — Take a look at all the ways the CFPB is improving financial literacy, including its \"Know Before You Owe\" campaign, training for housing counselors, K-12 curriculum recommendations, and more.\nHow the CFPB Helps Servicemembers — Men and women serving in our military are particularly vulnerable to violations of their consumer rights. Take a look at the free financial resources the CFPB provides to servicemembers and how they help when their rights are violated.\n### Products and Services Regulated by the CFPB\nBanking Products and Services — The CFPB regulates the banking industry, collaborates with community banks and credit unions, writes new rules and regulations, and accepts consumer banking complaints.\nStudent Banking and Credit Cards — The CFPB conducts inquiries into on-campus student financial services, educates students about their banking options, maintains a database of school credit card agreements, and accepts student banking complaints.\nPayment Cards — The CFPB administers the CARD Act of 2009, designs new and improved credit agreements and disclosures, maintains a database of credit card agreements, accepts credit card complaints, and writes new rules and regulations.\nInternational Money Transfers — The CFPB enforces the Remittance Transfer Rule, accepts money transfer complaints, and writes new rules and regulations.\n### Loans\nStudent Loans — The CFPB created the Financial Aid Shopping Sheet, as well as a customizable tool for comparing financial aid offers. They also educate students about their loan options, regulate the student loan industry, and accept student loan complaints.\nPayday Loans — The CFPB regulates the payday loan industry, conducts studies of the payday loan industry, educates consumers of payday loans, and accepts payday loan complaints.\nMortgages — The CFPB regulates the mortgage industry, proposes and enforces mortgage rules, promotes its \"Know Before You Owe\" campaign, offers mortgage data tools, provides training for housing counselors, and accepts mortgage complaints.\nAuto Loans — The CFPB regulates auto lenders, takes enforcement action, educates consumers of auto loans, and accepts auto loan complaints. \n### Debt Collection and Credit Reporting\nDebt Collection — The CFPB oversees the debt collection industry, publishes an annual fair debt collection practices report, provides consumers with sample action letters, writes new debt collection rules, and accepts debt collection complaints.\nCredit Reporting — The CFPB enforces the Fair Credit Reporting Act, supervises credit reporting companies, compiles reports on the credit reporting industry, and accepts credit reporting complaints. END
 TITLE: Legal Information for Credit and Debt Issues CONTENT: ###### Written by: Kristy Welsh\nIn this ever-increasing litigious society, one day you may find yourself on the receiving end of a lawsuit. Or, you may want to sue a collection agency for harassment. Most of us don't have a \"lawyer on staff\" or know the first thing about what do if you are sued or how to go about suing someone else. Have no fear — we have all the basic information you will need to navigate your way through litigation. We cannot stress enough, however, that we are not lawyers and any and all information on our site is just that — information, not legal advice. If you have any questions regarding litigation, it is best to seek the advice of a licensed attorney in your state.\nGeneral Information About Lawsuits\n----------------------------------\nHow Lawsuits Works — Whether you're the plaintiff or defendant, you need to know the basics of navigating your way through the lawsuit process. See what to expect, step-by-step, from the summons and complaint, to the discovery process, to the trial (if it goes that far).\nHow to Build Your Legal Tool Kit — You're going to have a lot of recordkeeping to do and paperwork to organize when dealing with a lawsuit. Refer to this checklist of supplies that will make this job easier, as well as a couple of sources for free legal information.\nWhat is Pretrial Discovery? — In the early stages of a lawsuit, the disclosure of evidence is known as _pretrial discovery_. See the different types of discovery tools that are used in litigation proceedings.\nWhat is the Pretrial Conference? — Before a case goes to trial, what's held first is the _pretrial conference_. This is what determines whether the case is settled or goes to trial, so get the facts about how best to prepare yourself for it.\nWhat to Say to a Judge in Court — How should you address the judge? How should you answer distressing questions? What should you object to? Get the facts, as what you say to a judge in court can mean the difference between a win and a loss.\nDamages Awarded in Lawsuits — When you win a lawsuit, you are entitled to an award to compensate you for your loss. Learn about the different types of damages that may be awarded (e.g., compensatory, general, nominal, punitive, special, statutory, treble).\nHandling a Lawsuit Filed Against You by a Debt Collector\n--------------------------------------------------------\nAccount Stated vs Written Contract Defenses — When a credit card company files a lawsuit against you, there are two ways they can state how you entered into your contractual agreement. Learn how to defend yourself depending on whether the company claims _account stated_ or _entered into a contract_.\nProcess Service Requirements by State — If a lawsuit is filed against you, a copy of it must be properly served to you. If it's not, the lawsuit could be thrown out, so it's important to know your rights. Check out this state-by-state listing of proper service requirements.\nHow to Answer a Summons and Complaint — You never want to _ignore_ a Summons and Complaint, as that will result in you losing by default. But before you respond, make sure you know how to do it right.\nAffirmative Defenses in Your Answer — After answering individual complaints, be sure to include _affirmative defenses_ in your response to a Summons and Complaint. Take a look at examples of affirmative defenses.\nHow to File a Motion to Strike — An _affidavit of debt_ is a sworn statement signed by an employee of the company suing you, attesting to the legitimacy of the information in the complaint. Find out how to file a motion to strike an affidavit of debt.\nBill of Particulars — Allowed only in a handful of states, a _bill of particulars_ lists all of the reasons a lawsuit has been filed against you. If you live in California, New York, Illinois, or Virginia, find out whether it's worth requesting one.\nHow to Get a Wage Garnishment Judgment Exemption — If a creditor is trying to garnish your wages, you have good reason to be alarmed, but don't panic. It is possible to get an exemption. Here's how.\nFiling Your Own Lawsuit\n-----------------------\nHow Collection Agencies Violate the Law — Take a look at FTC lawsuits against collection agencies dating from 2008 through 2012, a good way to inform your own potential legal action against them.\nHow to Sue Your Creditors - \nSuing a Creditor for Damaging Your Credit Rating — Did a creditor or debt collector knowingly report inaccurate information to the credit bureaus? You may have a case against them.\nSuing for Defamation of Character — Has your reputation been harmed by an inaccurate credit rating? You may be able to sue for it. Get tips on proving defamation of character and see details of the court case that sets a good precedent for it.\nTips When Suing a Credit Reporting Agency — Provided a mandatory arbitration clause doesn't prevent it, you can sue a credit reporting agency if they violate your rights.\nCredit Card Arbitration — Whether you realize it or not, your contract with your credit card company probably includes a mandatory arbitration clause. If so, all disputes must be handled through a third-party arbitrator, meaning you do not have the right to sue.\nMandatory Arbitration or Court Trial — Learn the differences between these two types of litigation hearings, including cost, length, who presides, right to appeal, enforcement of the award, and more.\nHow to File a Lawsuit in Small Claims Court — Though procedures vary from county to county and state to state, there are some general guidelines it's important to understand about small claims court. Get the facts about serving the notice, preparing your case, what to expect at the trial, and more.\nFair Debt Collection Practices Act — Fair Credit Reporting Act — Statute of Limitations\n---------------------------------------------------------------------------------------\nFair Debt Collection Practices Act (FDCPA) — Do you know when and where a debt collector is allowed to contact you? What they're allowed to say and what's not okay? Find out with this link to the Fair Debt Collection Practices Act in its entirety (or check out this summary).\nFair Credit Reporting Act (FCRA) — Do you know who is allowed to see your credit reports? How they ensure accuracy? How to dispute errors? Find out with this link to the Fair Credit Reporting Act in its entirety (or check out this quick guide).\nFair and Accurate Credit Transactions Act — This amendment to the Fair Credit Reporting Act is aimed at preventing identity theft, improving the resolution of consumer disputes, improving the accuracy of consumer reports, and more.\nNotice of Negative Information — After a creditor reports negative information to a credit bureau, they are required to let you know about it. That's thanks to the Notice of Negative Information Provision. Get the facts.\nStatute of Limitations on Debt — Once the statute of limitations runs out, you are no longer legally required to pay a debt. So, before you pay a dime on old debt, check out this state-by-state listing for when your legal responsibility runs out.\nHow to Vacate a Judgment — It may be a long shot, but it is possible that a judgment against you could be dismissed (i.e., vacated). Get the facts about how it works, including success stories.\nConsumer Credit Attorney — State Specific Requirements — Case Law References\n----------------------------------------------------------------------------\nConsumer Credit Attorneys\nCase Law\nSmall Claims Courts Listed by State\nState Auto Repo Laws\nBoatley v. Diem Corporation\nRichardson v. Fleet\nCushman v. TransUnion\nStevenson v. TRW\nState Licensing Requirements for Collection Agencies\nInformation on Taxes\nUnclean Hands Doctrine END
 TITLE: What to do If You Are Sued by a Debt Collector CONTENT: How to Answer a Summons and Complaint if You've Been Sued\n---------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: January 4, 2021_\nIf you ask the average person what life events frightened them the most, one of the answers will surely come up as the fear of being sued. With many collection agencies and junk debt buyers turning to the legal system to collect, more and more people are being sued over outstanding debts. This article will cover the best way to handle this situation if you find yourself served with a Summons and Complaint. This article covers lawsuits dealing with debt only. You might also watch to watch our video on being sued.\nServed a Lawsuit - Now What Do You Do?\n--------------------------------------\nIf you have been served with a lawsuit, the time to send a debt validation letter is over. It is common for a person to think that sending a debt validation letter to the law firm\/collection agency\/junk debt buyer will somehow stop the court case or serve as a proper answer to the summons. That is most certainly not the case. Once you are sued, your priority should be writing your Answer to the court addressing each point in the Complaint. If you don't do this, you will automatically lose the case by default. Your time to answer the complaint is limited, usually 20 to 30 days from the day you are served. Don't waste this precious time on debt validation.\nWhat is a Summons and Complaint?\n--------------------------------\nIn the packet of papers you received from the process server, you will find your Summons and Complaint. Here is what you will be looking for in these papers:\n*   A document telling you when your court date is.\n*   Some kind of certification that you were served.\n*   Instructions for answering the complaint or a form to fill out.\n*   Any evidence the Plaintiff (i.e., collection agency) is submitting. There could be documents such as affidavits from the collection agency. There might also be documents from the original creditor, although this is extremely rare.\n*   A list of allegations, which constitutes the complaint. \nNext we will go over the steps to identify the complaint in the paperwork.\nWhat is a Complaint?\n--------------------\nIn legal jargon, a complaint is any formal legal document that sets out the facts and legal reasons that the filing party believes are sufficient to support a claim against you. As you look through the paperwork you received from the process server, most complaints will look like the following.\nComplaint Number #XXXXXXX  \nCollection Attorney Plaintiff vs. Defendant (you)\nAllegation 1: <Gives plaintiff's name, address>  \nAllegation 2: <Gives your name and address>  \nAllegation 3: Typically, this next allegation will say something like \"Defendant obtained a credit card from Credit card Company X\"  \nAllegation 4: Typically, this next allegation will say something like \"Defendant used the credit card to obtain goods and services using the card\"  \nAllegation 5: Typically, this next allegation will say something like \"Defendant racked up charges totally $XX and then refused to pay\"\nHow to Prepare Your Answer\n--------------------------\nThe most important thing you can do is to Answer the Complaint by the due date. _**This is the most important thing you can do when you receive a summons.**_\nOnce you've identified the paperwork that constitutes the complaint, you must answer it. You merely reply by stating whether or not you agree with the statements in the complaint and why. Don't hide your head in the sand, you have nothing to lose by answering the complaint, even if you don't do it exactly right. You must do it quickly, you only have 20 to 30 days (depending on your court) to answer the complaint. If you do nothing, you automatically lose and the collection agency has a judgment against you.\nAnswering the Complaint Correctly\n---------------------------------\nYou can write your answer on a plain piece of paper, or type them up on your computer. No fancy or legal format is necessary. As long as your answer is clear, it will be fine. In some court systems, they provide written forms for you to fill out. You can use them and attach a more detailed answer.\n**IMPORTANT:** You must ADMIT or DENY each allegation. Failure to deny an allegation means that you are admitting to it. Using the above example, this is how you would answer each and every allegation:\n**Your answer to Allegation #1:**  \nIn your answer, you would ADMIT allegation #1, that the Plaintiff is who they say they are.\n**Your answer to Allegation #2:**  \nYou would also ADMIT allegation #2, that you (the Defendant) are who Plaintiff says you are.\n**Your answer to Allegation #3:**  \nWe are assuming in allegation #3, that you opened a credit card account with them, has been backed up by zero evidence. For instance, some lawsuits are filed by Junk Debt Buyers acting as collection agencies who don't even list the account number of the original credit card. They don't have any statements from the credit card companies, nothing. They've provided no proof so you, as a result, have no idea what they are talking about. The same holds true for allegations 4 and 5.\nADMIT in part. I did have an account with Bank X. DENY in part, I have been presented no evidence that the account I had with Bank X is the same account as the debt alleged in this complaint.\n\\-or-\nDENY. Responding Party objects to this request on the ground that it is vague, ambiguous and unintelligible in that Responding Party has to speculate as to the meaning of \"the credit card\" and \"the account.\"\n**Your answer to Allegation #4:**  \nDENY. This request calls for admission of matter defendant has denied and thus it is improper.\n\\-or-\nDENY. Responding Party objects to this request on the ground that it is vague, ambiguous and unintelligible in that Responding Party has to speculate as to the meaning of \"the credit card\" and \"the account.\"\n**Your answer to Allegation #5:**  \nDENY. This request calls for admission of matter defendant has denied and thus it is improper.\nUsing Affirmative Defenses in Your Answer\n-----------------------------------------\nAffirmative defenses are legal reasons why the complaint should be thrown out of court. Some of the best affirmative defenses are:\n*   **Failed to state the basis of the lawsuit.** They did not cite an actual state law that was violated.\n*   **Debt is time-barred.** The statute of limitations has passed.\n*   **Plaintiff lacks legal standing.** The plaintiff has failed to provide legal evidence that they are legally entitled to collect the debt. This happens when a debt collector cannot prove they purchased or were assigned the debt.\nYou can list these affirmative defenses at the bottom of your answer, after the specific responses to the allegations.\nFile Your Answer with the Court\n-------------------------------\nYou will need to send a copy of your answer to the courts and the lawyer listed in the complaint. Make sure you send them within the time allowed and send them registered mail or take them to the court and file them with the clerk of courts.\nRequests for Discovery\n----------------------\nIn some courts, you need to file any counter-suit along with your answer. In addition, if you intend to ask for discovery (request disclosure of information and documents from the Plaintiff), you may need to send it along with your answer. Every court's rules are different, you need to look this up. Which brings us to the next item.\nLook up Courts Rules of Procedure\n---------------------------------\nMost courts have online instructions and information. Take the time to read it. You will at least need to know the timetable of your case.\nEvidence Included in the Summons and Complaint\n----------------------------------------------\nMost often you will be presented with exhibits (documentation which serves as evidence) in the case file, such as credit card agreements and affidavits of debt. Usually you can object to this evidence and get it thrown out of the case based on hearsay. If you are successful getting this evidence thrown out (struck from the records), the Plaintiff will have no evidence against you. If they have no evidence, they cannot win.\nA word about affidavits; Robo-signing is rampant in the debt lawsuit industry. You can always attack an affidavit to get it thrown out as hearsay.\nTips for Filing Your Answer\n---------------------------\nMany courts will let you handle everything through the mail. There is no need to take time off of work to personally file your answer. Send everything certified mail, return receipt requested; one copy to the court, one copy to the lawyer representing the Plaintiff.\nAnother good idea is to include a self-addressed stamped envelope and one extra copy with your answer to the court. In some cases, if you made a mistake in your answer, they will let you know immediately. If nothing else, they will send you an endorsed-filed copy of the filing so you know it was entered. One of our readers received a hand written note from the clerk asking my reader to call so the clerk could help correct the filing.\n* * *\n**Here is a Sample Letter To Use**\n**PLEASE DO NOT JUST CUT AND PASTE THIS** - Every complaint is different. One size DOES NOT fit all. If you merely cut and paste, you WILL LOSE.\nComplaint number #XXXXXXX  \nCollection Attorney Plaintiff vs. Defendant (You)\nDefendant's Answer to Complaint\nAllegation 1: Admit  \nAllegation 2: Admit  \nAllegation 3: Denied: Responding Party objects to this request on the ground that it is vague, ambiguous and unintelligible in that Responding Party has to speculate as to the meaning of \"the credit card\" and \"the account.\"  \nAllegation 4: Denied: This request calls for admission of matter defendant has denied and thus it is improper.  \nAllegation 5: Denied: This request calls for admission of matter defendant has denied and thus it is improper.  \nFURTHERMORE, Defendant DENIES every other allegation not previously admitted, denied or controverted.\nAS AND FOR AFFIRMATIVE DEFENSES\n1\\. Plaintiff fails to state a cause of action against the defendant.  \n2\\. Plaintiff, as the defendant is informed and believes, lacks the legal standing to bring and maintain this action.  \n3\\. The action is barred by the Statute of Frauds.  \n4\\. The action is barred by the Statute of Limitations.  \n5\\. The court would unjustly enrich the plaintiff by granting the relief sought herein.  \n6\\. The plaintiff has not proven the debt is valid or the amount of the debt is accurate. The plaintiff must prove that the principal, interest, collection costs, and attorney's fees are all correct, agreed to in your contract, and lawfully charged. Defendant also insists that the plaintiff come up with the contract, account statements and purchase receipts to prove the amount of the debt.\nWHEREFORE, the defendant asks the Court for judgment:  \na. dismissing the complaint herein with prejudice.\nWhat if I want to compel arbitration?\n-------------------------------------\nIn some cases, especially if you feel you are dealing with a Junk Debt Buyer (JDB), you may want to go into arbitration.  The technique of using arbitration can be effective as most times, it is quite expensive for a JDB to go through arbitration and they could just walk away from the debt.  \nIf that is the case, you want to file a Motion to Compel Arbitration at the same time as filing your answer.  Do NOT file it instead of filing your answer to the summons.\n* * *\n_Please note: **WE ARE NOT ATTORNEYS**. If you are being sued, it's always a good idea to hire an attorney or get some legal assistance. If you cannot afford an attorney, a lot of people have handled their cases pro per or without a lawyer. Our articles are meant to provide basic information on handling litigation._ END
 TITLE: Learn the Basics of Budgeting Your Money CONTENT: ###### Written by: Kristy Welsh\nAccording to a recent study by debt.com, 67 percent of Americans use a budget. This is an improvement over a 2013 Gallup poll which showed that just 32 percent of households maintained a budget. The pandemic has no doubt changed these numbers. Fortunately, the basics of budgeting aren’t hard to grasp and it’s never too late to learn.\n**1)** **Spend less than you make**\n-----------------------------------\nYou’re going to have to do the math.\nKeep track of your spending for a month or two and see what’s really going where, by category (e.g., rent, utilities, food, insurance, gas, clothes, credit cards, loan payments, etc.). Record everything, down to the dollar. If expenses are greater than your income, you’re living above your means.\n2) Analyze your credit card spending\n------------------------------------\nYou can also look to your credit card balances. One sure sign that you’re spending _more_ than you make is if you’re charging things to your credit cards that you’re not paying back by the due date. You’re either spending more than you can afford or you’re choosing to use money that could go toward your credit cards to go toward something else instead. Either way, it’s a recipe for financial disaster.\nPay more than the minimum payment.  If you’re only budgeting by putting down the minimum payment, you’re asking for trouble.  Even if you go months at a time without charging anything to your credit cards, if you’re carrying a balance that you’re only making minimum payments on, it’s costing you plenty in interest. Plus, it’s increasing your credit utilization ratio, which doesn’t do good things for your credit.\n**3)** **Tell your money where to go**\n--------------------------------------\nOnce you know where your money is going, tell it where you’d rather it goes instead.\nStart with your fixed expenses, like your rent or mortgage payment, utilities, cell phone, auto loan, and insurance. Any expense that stays the same from month-to-month should go into this category.\nMove on to your financial goals, like paying off credit cards or saving for an emergency fund. A minimum 10 percent of your income is a good starting point. So, if you earn $3,000 a month, you’d assign $300 toward your financial goals.\nFinally, look at what’s left after your fixed expenses and financial goals have been assigned. That’s what you have to put toward your flexible expenses, like food, gas, entertainment, and clothes. Every dollar must have a home. Once you calculate your income and expenditures, make sure that any left-over dollars have a place, like savings or paying off debt.\n**4)** **Keep track of your budget**\n------------------------------------\nYou can do it old-school, saving receipts and logging your spending into a notebook or Excel spreadsheet. Or you can use a budgeting app.\nMint and YNAB all connect to your financial accounts. Every time you use your debit or credit card, the app assigns the transaction to a category, keeping track of your monthly spending as you go. They also allow for manual entry of your cash transactions.\n**5) Make adjustments to your budget**\n--------------------------------------\nIf something’s not working, it’s not because you’ve failed. Trial and error are the nature of budgeting.\nFor instance, if you’ve cut your flexible expenses to the bone and you’re still struggling, maybe now is not the time to put so much toward your financial goals. Cut that in half and put it toward flexible expenses instead.\nIf you still need more wiggle room, you can always try increasing your income and\/or looking at which of your fixed expenses you’re willing and able to lower. Can you:\n*   Find a cheaper place to live?\n*   Get on a cheaper cell phone plan?\n*   Find cheaper car insurance?\n*   Refinance a loan for better terms?\nBottom line, you’re in charge. Tell your money what to do and, if it’s not working, try something else. END
 TITLE: Consumer Protection Lawyers Listed by State CONTENT: Consumer Protection Lawyers Who Handle Credit and Debt Problems\n---------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 21, 2017_\nJust because someone is a lawyer doesn't mean he or she is knowledgeable in the area of consumer law. If you are going after a credit bureau, original creditor, or collection agency, you need to talk to a specialist in this field. Similar to the medical field, the legal field is very broad and no one can know everything about all areas of law. That's why lawyers specialize in fields such as criminal, family, corporate, accident\/injury, tax, and credit law. Just as you wouldn't ask a divorce lawyer to handle your credit case, you wouldn't ask a heart specialist to do brain surgery, at least we hope you wouldn't. While in some cases bankruptcy attorneys can handle credit law, in most cases, they do not. We recommend not using a bankruptcy attorney if they are not familiar with the FCRA and FDCPA.\nFinding a Consumer Attorney\n---------------------------\nUnfortunately, there are not a lot of consumer attorneys out there because the impression is that there is not much money to be made. Of course, that impression is incorrect. The number of illegal actions taken by credit bureaus, collection agencies, auto dealerships, and credit card companies is staggering. Here's our pitch to anyone currently in the legal field — take up this type of practice. You will be doing yourself, and the consumer, a great service.\nAttorney Qualifications\n-----------------------\nThe other road block to finding an attorney is that an attorney must be licensed to practice law in your state. Each state has very different laws and procedures for taking a case to court and an attorney must be intimately familiar with them. In order to be licensed in a particular state, the attorney must take and pass the very difficult bar exam, even if he or she has practiced law for many years in a different state. \nSome Attorneys Our Readers Have Recommended\n-------------------------------------------\nThe list below represents lawyers that our readers have recommended. By the way, the fact that readers have recommended these lawyers means that they have won their cases against the credit bureaus and collection agencies, something that should encourage you to fight.\nIf you cannot find a lawyer in your state listed here, there are a couple of other ways to find one.\n1.  Go to the National Association of Consumer Attorneys (NACA). Note: A large percentage of these lawyers handle class-action lawsuits exclusively, but there are some on the list that will take an individual case.\n2.  Another good idea is to go to the court website listing the active civil cases in your state and county. Input the creditor you think is going to sue (or any of the big creditors) into the search engine. The case listings will include the lawyer or firm representing the _**defendant**_. If you see one lawyer who has handled multiple case for _**defendants**_, you can assume they are well versed in consumer law. If this lawyer has cases scheduled in the future, you can even go to the court on the appearance date and watch their performance in court.\nIf you know of another lawyer that has helped you out, we want to know. **None of these lawyers has paid us to list him or her here.** \nALABAMA\nEarl Underwood  \nUnderwood & Reimer, P.C.  \nMobile, AL  \n(800) 273-9534\nM Stan Herring & John G Watts  \nWatts Law Group, P.C.  \nBirmingham, AL  \n(205) 879-2447\n* * *\nARIZONA\nMark Willimann  \nThe Law Office of Mark F. Millimann, LLC  \nTucson, AZ  \n(520) 579-6622\nFloyd W. Bybee  \nBybee Law Center, PLC  \nMesa, AZ  \n(480) 756-8822\nHyung S. Choi  \nChoi & Fabian, PLC  \nTempe, AZ  \n(480) 517-1400\nRichard Groves  \nThe Law Office of Richard Groves  \nPhoenix, AZ  \n(602) 230-0995\n* * *\nCALIFORNIA\nHoward Silver  \nLaw Offices of Howard D. Silver  \nOak Park, CA  \n(855) 341-2611 \nRobert L. Hyde  \nHyde & Swigart  \nSan Diego, CA  \n(619) 233-7770\nM. David Magher  \nThe Law Offices of M. David Meagher  \nEscondido, CA  \n(760) 743-2200\nWilliam Krieg  \nKemnitzer, Barron & Krieg  \nFresno, CA  \n(559) 441-7485\nWilliam E. Kennedy  \nConsumer Law Office of William E. Kennedy  \nSanta Clara, CA  \n(408) 241-1000\nFred W. Schwinn  \nConsumer Law Center, Inc.  \nSan Jose, CA  \n(408) 294-6100\nAlexander B. Trueblood  \nThe Trueblood Law Firm  \nLos Angeles, CA  \n(310) 443-4139\n* * *\nCOLORADO\nList of Consumer Protection Lawyers\n* * *\nCONNECTICUT\nJoanne Faulkner  \nNew Haven, CT  \n(203) 772-0395\n* * *\nFLORIDA\nMary Reid Mayo Morelly, Esq.  \nEdgewater, FL  \n(386) 689-6591\n* * *\nGEORGIA\nKris Skaar & James M. Feagle  \nDecatur, GA  \n(404) 373-1970  \nMarietta, GA  \n(770) 427 5600  \nSkaar and Feagle  \nLaw Offices of James M. Feagle, P.C.\nLawrence Silverman  \nSoutheast Consumer Law Group  \n3535 Roswell Rd., Suite 9  \nMarietta, GA 30062  \n770-973-2599, ext. 207\n* * *\nIDAHO\nAnn Jacquot  \nJacquot Law, PLLC  \nCoeur d'Alene, ID  \n(208) 209-6399\n* * *\nILLINOIS\nSchad, Diamond & Shedden  \nLaw Offices of Schad, Diamond & Shedden  \nChicago, IL  \n(800) 294-0539\nDaniel A. Edelman  \nEdelman, Combs, Latturner & Goodwin, LLC  \nChicago, IL  \n(888) 592-6124\nO. Randolph Bragg  \nHorwitz, Horwitz & Associates  \nChicago, IL  \n(312) 372-8822\n* * *\nINDIANA\nList of Consumer Protection Lawyers\n* * *\nKENTUCKY\nBorowitz Law Group, PLC  \nLouisville, KY  \n(502) 584-7378\n* * *\nLOUSIANA\nRobert M. Louque, Jr.  \nLouque Law  \n700 Camp Street  \nNew Orleans, Louisiana 70130  \n(504) 324-2807  \nToll Free: 1-866-264-4690\n* * *\nMARYLAND\nSonya A. Smith-Valentine  \nValentine Legal Group, LLC  \nLargo, MD  \n(301) 513-9500\n* * *\nMASSACHUSSETTES\nElisa Zawadzkas  \nMichael A. Zawadzkas Attorney at Law  \nOrleans, MA  \n(508) 240-1403\n* * *\nMICHIGAN\nIan Lyngklip  \nLyngklip & Associates  \nSouthfield, MI  \n(248) 208-8864\nKurt Okeefe  \nBankruptcy & Consumer Lawyer  \nDetroit, MI  \n(877) 817-9506\n* * *\nMINNESOTA\nPeter F. Barry  \nBarry & Helwig, LLC  \nSt. Paul, MN  \n(612) 379-8800\nThomas J. Lyons  \nLyons Law Firm, P.A.  \nVadnais Heights, MN  \n(651) 770-9707\n* * *\nMISSISSIPPI\nChritopher E. Kittell  \nMerkel & Cocke, P.A.  \nClarksdale, MS  \n(662) 627-9641\n* * *\nMISSOURI\nPeter Van Leunen  \nThe Van Leunen Law Firm, LLC  \nThe VL Law Firm  \n5838 Macklind Avenue  \nSt. Louis, Missouri 63109  \n(314) 481-4646\n* * *\nNEVADA\nCraig Friedburg  \nConsumer Law  \n4760 South Pecos Road, Suite  \n103 Las Vegas, NV 89121  \n(702) 435-7968\nMitchell D. Gliner  \nAttorney at Law  \nLas Vegas, NV  \n(702) 870-8700\n* * *\nNEW JERSEY\nList of Consumer Protection Lawyers\n* * *\nNEW MEXICO\nRick Feferman & Susan Warren  \nLaw Offices of Feferman & Warren  \nAlbuquerque, NM  \n(505) 243-7773\n* * *\nNEW YORK\nAnthony J. Pietrafesa  \nLaw Office of Anthony J. Pietrafesa  \nAlbany NY  \n(518) 518-0851\nJames B. Fishman  \nFishman Rosen, LLP  \nNew York, NY  \n(212) 897-5840\n* * *\nNORTH CAROLINA\nList of Consumer Protection Lawyers\n* * *\nOHIO\nList of Consumer Protection Lawyers\n* * *\nOKLAHOMA\nJustin Lamunyon  \nLamunyon Law Firm, P.C.  \nEnid, OK  \n(580) 242-4621\nDavid Humphreys  \nHWH Lawyers  \nTulsa, OK  \n(918) 747-5300\nB. David Sisson  \nLaw Offices of B. David Sisson  \nNorman, OK  \n(405) 447-2521\nWilliam Irons  \nIrons Law Firm, PLLC  \nTulsa, OK  \n(918) 392-0079\n* * *\nOREGON\nRobert S. Sola  \nPortland, OR  \n(503) 295-6880\nRudyard Coltman  \nYervasi & Coltman, LLP  \nBaker City, OR  \n(541) 663-8987\n* * *\nPENNSYLVANIA\nJames A. Francis  \nFrancis & Mailman, P.C.  \nPhiladelphia, PA  \n(215) 735-8600\nJames Pietz  \nMalakoff, Doyle & Finberg, P.C.  \nPittsburgh, PA  \n(412) 281-8400\nCary L. Flitter  \nCary L. Flitter, Esq.  \nNarberth, PA  \n(610) 822-0789\n* * *\nRHODE ISLAND\nChris LeFebvre  \nThe Consumer and Family Law Center of Claude Lefebvre, Christopher Lefebvre, P.C.  \nPawtucket, RI  \n(401) 728-6060\n* * *\nSOUTH CAROLINA\nDave Maxfield  \nTrotter & Maxfield, Attorneys at Law  \n5217 N. Trenholm Road, Suite B  \nColumbia, SC 29206  \n(803) 509-6800\n* * *\nTEXAS\nMichael T. O'Conner  \nThe Law Offices of Dean Malone, P.C.  \n900 Jackson Street  \nDallas, TX  \n(214) 670-9989\nTENNESSEE\nBarnette Law Offices  \n309 Hollow Tree Court  \nNashville, TN 37221  \n615-585-2245  \n615-250-8787 (fax)\n* * *\nUTAH\nLester A. Perry  \nHoole & King, L.C.  \nSalt Lake City, UT  \n(801) 272-7556\nAtkins & Shields P.C.  \nSalt Lake City, UT  \n(801) 533-0300\n* * *\nVIRGINIA\nLeonard A. Bennett  \nConsumer Litigation Associates, P.C.  \nNewport News, VA  \n(757) 930-3660\nG. R. \"Rusty\" Boleman  \nBoleman Law Firm  \nRichmond, VA  \n(804) 355-2057\nDale Pittman  \nPetersburg, VA  \n(804) 861-6000\n* * *\nWASHINGTON\nChristopher Green  \nAttorney at Law  \nSeattle, WA  \n(206) 686-4558\n* * *\nWISCONSIN\nDaniel A. Edelman  \nEdelman, Combs, Latturner & Goodwin, LLC  \nChicago, IL  \n(888) 592-6124\n* * * END
 TITLE: Information on Auto Loans - Auto Financing CONTENT: Articles on Auto Loans, Automobile Leases, Repossessions\n--------------------------------------------------------\n###### Written by: Kristy Welsh\nAt some point in your life, you are going to buy a car and you are going to have to face the dreaded \"auto finance\" department. To some, going through the process of financing an automobile purchase is one of the worst things in life. If you also have a car dealer finance department phobia, fear not! We have put together some articles that will help you understand the process and give you some tips on dealing with the loan department.\nInformation on Auto Loans and Financing — The best thing to do before you begin shopping for a new or used car is to get your auto financing lined up. Here is how to get pre-approved for an auto loan before you walk into the dealership.\nPros and Cons of Leasing a Car — Is it better to lease or buy your next car? What are the advantages to leasing a car? What goes into figuring out a lease vs a purchase? Get answers to these and more questions.\nUse a Credit Union to Refinance an Auto Loan — If you are thinking about refinancing your current auto loan, then check into the benefits of using a credit union instead of a traditional bank.\nEnd or Extend Your Auto Lease — Is your auto lease coming to an end? We have six ways to end or extend your lease.\nFacts Regarding Auto Repos — If you are behind on your car payments, you may be in danger of having your car repo'd by the lender. Get the facts regarding your rights and the procedure of an automobile repossession.\nCheck Out the Car Accident History Before You Buy a Car — An important thing to do before you spend all that money on a used car, is to check to make sure it has not been in any major accidents. See how to do this before you buy. END
 TITLE: Information on Auto Loans - Auto Financing CONTENT:    |  |  |  | \n: . END
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 TITLE: Site Map of Articles | Credit Info Center CONTENT: ###### Written by: Kristy Welsh\nInformation on Credit Repair, Credit Reports and Scores, Debt Settlement, Bankruptcy, and More!\n-----------------------------------------------------------------------------------------------\nHome\nCredit Repair - Learn how to fix your credit on your own or have a credit repair company do it for you. Our articles will give you all the information you need to repair your credit by removing negative and inaccurate information.\nCredit Reports - The first step in fixing your credit is to obtain all three of your credit reports. These articles will explain how to get your reports and then how to interpret the information on these reports.\nCredit Cards - There are a lot of credit card offers out there, so how do you know you are getting the best credit card? We have compiled all the best credit card offers, information, and suggestions in one section.\nDebt Settlement - If you have a lot of debt, we have tried and true methods of settling those debts. The best way to increase your credit score, is to lower you debt and keep the amount of money you owe to a bare minimum.\nCredit Score - Just how does FICO come up with that three-digit number and what does it really mean? Even though the exact formula is a highly guarded secret, we have articles that unravel part of the mystery and suggestions on how to increase your credit score.\nRebuild Your Credit - After going through a bankruptcy or a foreclosure, you will need to build your credit back up. We have some great ideas for rebuilding your credit and adding positive credit to your credit reports.\nBankruptcy - Some think of this as another bad word - it's not. Bankruptcy is a way to start over again with a clean slate. But don't take filing for bankruptcy lightly, it takes serious consideration and we have some some great tips and alternatives to filing BK.\nLoans - This section covers everything from student loans, financial aid, auto loans, personal loans, business or SBA loans, and mortgages. There is an abundant amount of information in this category so take your time looking it over.\nIdentity Theft - Nothing could be worse than having your identity stolen and your credit ruined in the process. Learn how to detect ID theft and how to prevent it from happening to you.\nBudgeting and Saving Money - Learning how to budget your money and save your money go hand in hand. These articles cover everything from cutting coupons to setting up an automatic saving account.\nLegal Articles - We may not be attorneys, but we do have a lot of great articles that can help if you are being sued, or need to sue a creditor. These will get your started but you may need to talk to an actual attorney down the road.\nConsumer Protection Agencies - Consumer protection is designed to protect the rights of consumers as well as fair trade competition. The CFPB is the government agency assigned to this task. See how they protect different areas of commerce.\nCredit Repair Sample Letters - Check out our listing of free sample credit repair letters for you to use. You can tailor these templates to fit your situation. \nAll 'Bout Credit Videos - Our 12-part video series covers a variety of topics in a light-hearted manner you are sure to enjoy.\nBlog - News and information are posted daily about credit repair, debt settlement, credit cards, bankruptcy, and financial matters. END
 TITLE: Search For Articles on Credit Repair CONTENT: ### Search for answers\n*   **Popular Credit Repair Articles:**\n*   Remove Inquiries From Your Credit Reports\n*   Fix Your Credit Using Our Credit Repair Techniques\n*   Free Credit Repair Sample Letters\n*   How to Order Your Credit Reports and Scores\n*   Remove Collections From Your Credit Report\n*   **Recent Blog Topics:**\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit?\n### Let us help\nIf you don’t know where to begin, let’s start with a **free** credit report summary & **free** credit repair consultation.\n_Click “Send” to begin your consultation with a credit repair expert from Lexington Law.  Policy and Terms of Use._ END
 TITLE: Search For Articles on Credit Repair CONTENT: ### Search for answers\n*   **Popular Credit Repair Articles:**\n*   Remove Inquiries From Your Credit Reports\n*   Fix Your Credit Using Our Credit Repair Techniques\n*   Free Credit Repair Sample Letters\n*   How to Order Your Credit Reports and Scores\n*   Remove Collections From Your Credit Report\n*   **Recent Blog Topics:**\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Search For Articles on Credit Repair CONTENT: ### Let us help\nIf you don’t know where to begin, let’s start with a **free** credit report summary & **free** credit repair consultation.\n_Click “Send” to begin your consultation with a credit repair expert from Lexington Law.  Policy and Terms of Use._ END
 TITLE: Search For Articles on Credit Repair CONTENT:    |  |  |  | \n: . END
 TITLE: National Consumer Assistance Plan Helping Repair Credit CONTENT: How the National Consumer Assistance Plan Helps Your Credit\n-----------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 30, 2017_\nOne in five Americans have errors on their credit reports. What’s worse is how difficult of a process it can be to have these errors removed. Plus, many listings that aren’t technically wrong are just plain unfair. It’s issues like these that were the subject of an investigation by the Office of the New York State Attorney General into the practices of the three major credit reporting bureaus.\nOn the heels of this investigation, New York Attorney General Eric T. Schneiderman reached a settlement with Experian, Equifax, and TransUnion in 2015. The deal they reached is known as the **National Consumer Assistance Plan**. Here’s how it affects your credit.\nReporting Negative Listings to the Credit Bureaus\n-------------------------------------------------\n**Has the process been too easy on data furnishers?**\nNo more. From now on, a data furnisher must provide your date of birth when requesting that a listing be added to your credit report. Beyond that, the credit bureaus must form a National Credit Reporting Working Group made up of representatives from all three agencies. It’s their job to ensure that data furnishers are being held to standards reflective of \"consistency and uniformity\" in data reporting.\n**Are you waiting on an insurance company to** **pay a medical debt****?**\nThe credit bureaus must now wait 180 days before including these unpaid debts on your credit reports – a 180-day period that begins from the creation of the account. Should you already have a negative listing stemming from this situation, it should be removed once the insurance company makes payment.\n**Do have unpaid tickets or government fines?**\nWhile you still owe these debts, they can no longer be listed on your credit reports. The same is true of any other debt that was not incurred through a contract or agreement.\nCredit Report Disputes\n----------------------\n**Are you disputing a listing on your credit report?**\nIf you are successful, and the listing is changed in your credit report, you are now entitled to see a free revised copy right away to verify the modification. Previously, consumers had to wait a year between free viewings of their credit reports.\n**Did you include supporting documents with your dispute?**\nIf the bureau’s automated system rejects your dispute, a real person is required to review your supporting documents before a final decision and response is made.\n**Are you unhappy with the response to your dispute?**\nIt’s now the credit bureau’s job to tell you what to do next. As stated by the Consumer Financial Protection Bureau (CFPB), your subsequent options should include being able to have a brief statement of the dispute included in your file, as well as future reports. Beyond that, you can also dispute directly with the original creditor or collection agency. Should all of these avenues fail to correct the error, you can file a complaint with the CFPB.\nIdentity Theft and Mixed Files\n------------------------------\n**Do you have fraudulent listings on your credit reports?**\nThe credit bureaus now have a responsibility to review all supporting documents from the get-go. The same is true if your credit reports have been mixed up with someone else’s.\n**31 states onboard**\nThough initially a settlement between the Office of the New York State Attorney General and the three credit bureaus, a similar settlement has been reached with the attorney generals of 31 states, all of which are now part of the National Consumer Assistance Plan.\n**Do you have errors on your credit reports?**\nYou should start the dispute process with the credit bureaus. If that fails to produce results, you can dispute directly with the original creditor or collection agency. END
 TITLE: National Consumer Assistance Plan Helping Repair Credit CONTENT:    |  |  |  | \n: . END
 TITLE: Steps to Repair Your Checking Account History CONTENT: Remove Negative Information From Your Checking Account History\n--------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 22, 2017_\nYou are going to have a hard time opening a new account with a bank if you have bounced too many checks or owed money on an overdrawn account. Why? Because millions of people are blocked from opening a checking account each year because they were flagged as high-risk. Banks lose over a billion dollars a year on bad checks, so it is no surprise they report negative checking account activity to the nation's checking account reporting agencies. Though you are probably unaware of it, when you go to open a new checking account, the bank may pull your report from ChexSystems to ensure you do not have a negative checking account history. Beyond your ability to open a checking account, negative listings on this report can also impact your ability to get credit. Read on and we will show you how to fix your checking account history in 5 easy steps.\nRemoving Your Information From ChexSystems\n------------------------------------------\nIt is imperative you keep an eye on your checking account reports, just as you would your regular credit reports, so you can take steps to make needed reparations.\n1.  Request copies of your checking account reports. Just as with the three main credit reporting agencies, you are entitled to a free annual report from all of the checking account reporting agencies. ChexSystems is the biggest, but you should also request copies from Dakota Credit Services and First Data.\n2.  Go through your checking account reports, making note of listings that negatively affect your checking account credit history. The most common negative listings to look for include:\n    *   Multiple Overdrafts\n    *   Reports of Lost or Stolen Checks\n    *   Forced Closure of a Checking Account\n    Other listings that reflect negatively on a checking account report are of a more serious nature, such as false information provided at the opening of the account, fraud, record of attempts at opening multiple checking accounts within a few months' time, and outstanding balances still owed from overdrafts and other fees.\n3.  Dispute the negative listings. Just as with the regular credit reporting agencies, you can and should dispute negative listings on your checking account reports. We have sample letters you may use for both the initial and follow-up letters.\n4.  Mail your letters of dispute via certified mail. This way you can know with certainty when the agency received the letter, a critically-important piece of information, as they have a limited amount of time to respond. If your checking account report was obtained for free, the bureau has 45 days to respond, otherwise just 30 days.\n5.  Repeat steps 1 through 4. Just as with credit reports from Experian, TransUnion and Equifax, it may be that you can dispute negative listings multiple times, citing a different reason in each dispute letter. END
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 TITLE: Bad Credit Can Negatively Affect Your Life CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: March 21, 2017_\nBad credit, in and of itself, makes you feel bad enough, serving as a constant reminder of your past misfortunes and\/or mistakes. Add to that the very real problem bad credit poses to your everyday life, and you have a heck of a problem on your hands at just about every financially-related turn.\nThankfully, no matter how bad your credit may be, you can make it better by dealing with old debt and repairing your credit. \n1.  **Credit Cards.** The worse your credit, the more trouble you'll have qualifying for new credit cards, if you qualify at all. Provided you do, your interest rates will be higher, which could range anywhere from 22 to 36 percent. You'll also likely pay a number of fees that are not associated with cards issued to those with good credit.\n2.  **Auto Loans.** As with credit cards, if you have bad credit, you'll have trouble qualifying for an auto loan, if you qualify at all. The worse your credit, the higher your interest rates and, most likely, the higher the down payment required to secure the loan.\n3.  **Auto Insurance.** Though it doesn't make any logical sense why someone with bad credit would be in more accidents than anyone else, evidently insurance companies have reason to believe those with bad credit are more likely to file insurance claims. Considered a risk, you may get quoted higher insurance rates as a result.\n4.  **Home Loans.** Even more so than credit cards or auto loans, bad credit can easily prevent you from getting a home loan. If you do qualify, your interest rates will definitely higher.\n5.  **Renting.** If you don't qualify for a home loan, you're really left with just one option -- renting. But even that can feel next to impossible if you're dealing with bad credit. On top of first and last months' rent to move in, landlords often require an extra months rent of those with bad credit. And often, even that isn't enough, as landlords opt to limit their risk altogether by renting to someone with good credit instead.\n6.  **Utilities.** Having your water, gas and electricity turned on sounds like a simple enough process. But that's not the case if you're dealing with bad credit, as utility companies will most often require a deposit first, some heftier than others.\n7.  **Cell Phones.** Though pre-paid cell phones are always an option (regardless of your credit history) the cell phone plans that generally get you better deals and better coverage require you to enter into a cell phone plan. However, if you have bad credit, you can expect to pay a deposit to enter into the agreement, as cell phone companies do run credit checks.\n8.  **Bank Accounts.** This may come as one of the biggest surprises on the list. Though it would seem they are eager to take money from anyone who wants to deposit it with them, banks may be leery to open an account for those with bad credit, and refuse service altogether. That said, your credit has to be in pretty bad shape for this to happen and, even if it does, there are online banking services that cater to those with particularly bad credit.\n9.  **Employment.** As you may have heard, employers are increasingly using credit reports as part of their employment process. However, this is generally reserved for financially-related positions, and some states limit the rights of employers, including California, Connecticut, Hawaii, Illinois, Maryland, Oregon or Washington.\n10.  **Business Start-Ups.** Naturally, if you're starting a business, you need start-up money. Unfortunately, if you have bad credit, your brand new business already has a strike against it as it's your name whose credit will be checked to determine business loan approval.\n11.  **Relationships.** When you enter into a committed partnership with a significant other, in which you share everything, that does not exclude your credit histories. Granted, even a spouse is not legally responsible for debt you incurred prior to the marriage. However, any major purchases you want to make together, as a couple, will be negatively impacted if you have bad credit. This not only makes it difficult to buy a house or a car together, for example, but it puts an unwelcome strain on the relationship in general. END
 TITLE: Bad Credit Can Negatively Affect Your Life CONTENT:    |  |  |  | \n: . END
 TITLE: Credit Repair Myths - What Will Not Increase Your Score CONTENT: Credit Repair Myths - These Will Not Fix Your Credit Reports\n------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 23, 2017_\nHave you ever watched that TV show \"Myth Busters\" where they prove or disprove commonly accepted trends of thought. Credit Info Center is here to disprove some commonly accepted credit repair practices that are suppose to fix your credit reports and increase your credit score — or not.\nFixing your credit and increasing your credit score takes patience and a clear understanding of the strategies that really make a difference. One goes along with the other, fix all the dings on your credit report and your credit score will go up. It's like peas and carrots, tea and honey, bread and butter, you can't have one without the other. Having said that, you need to understand what financial moves will help and what ones won't when you are laying out your credit repair plans.\nSorry to disappoint, but, there is no quick fix when it comes to fixing your credit despite what you hear from some of those fly-by-night credit repair companies. The key to increasing your credit score is a good payment history along with some time and a healthy mix of credit types. Here are some bogus beliefs that **WILL NOT** help you build better credit.\nClosing All Old Accounts Will Boost Credit Score\n------------------------------------------------\nClosing old accounts typically won't help your score and could well possibly hurt it. Closing old accounts will shorten your credit history and leave you with a smaller amount of available credit. The length of credit history shows how seasoned a borrower you are, so the more positive experience you have, the better. Having more available credit helps to keep your utilization rate low. The utilization rate is how much available credit a borrower uses; the lower the percentage, the better.\nOpening Credit Card Accounts Will Increase My Score\n---------------------------------------------------\nWrong! Some people believe opening a bunch of new credit card accounts will be proof that they can handle credit. Actually, it has the opposite effect. A lender will wonder why in the world this person needs all of this credit and will interpret this as a sign of a high risk borrower. What the lender will see is a boatload of hard inquiries on your credit report which will negatively affect your credit score.\nPaying Off Delinquencies Will Restore My Credit\n-----------------------------------------------\nWell yes, but not as much as you might think. Even if you pay off the delinquencies, the late payments, charge-offs, or collection accounts, they will all still be shown on this account albeit with a zero balance. The trick to this is to have the creditor or collection agency agree to REMOVE the delinquency in exchange for you paying off the account. See our article on Pay for a Delete for more information on this debt settlement tactic.\nPaying Before the Due Date Will Help a Credit Score\n---------------------------------------------------\nPaying a credit card balance in full 10 days or one day ahead of the due date will not help your credit score. However, if you pay off the balance before the statement closing date, your report will post a zero balance for that account, which in turn will help your utilization rate, or how much credit you are using.\nAll Delinquencies Are the Same\n------------------------------\nIf you find yourself in the precarious position of only having enough money at the end of the month to pay on a few debts, make sure you choose the ones to pay wisely. Having a 30 or 60 day late payment on a mortgage or auto loan dings your credit score more than say a late payment on a credit card. Of course, any late payment is bad but if you are in between a rock and hard place, pay your mortgage and car loan on time, if you can.\nGet Rid of All Negatives on Credit Reports\n------------------------------------------\nIn a perfect world, this would be a great thing to accomplish but sometimes there are a few negatives that just will not come off. Rest assured, having a few older dings will not crash your credit score as long as you have some good credit building techniques going on with your newer accounts. Older accounts have less \"weight\" than newer accounts so keeping the newer ones current is very important to increasing your credit score.\nWhat Have We Learned\n--------------------\nBuilding better credit and increasing your credit score can be shrouded in mystery and myth, but keeping some simple rules of thumb in mind will keep you on the right path. Don't think fixing your credit is going to happen overnight because it won't. Keep your nose to the grindstone and be consistent with a good payment history, diversify your accounts and keep your balances low. Follow these simple rules and your credit score will increase and your credit history will improve. END
 TITLE: Can You Pass Our Credit Repair Quiz CONTENT: Credit Repair Quiz: Are You Ready to Repair Your Credit?\n--------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 21, 2017_\nThere is nothing a credit repair company can do for you that you cannot do for yourself. However, before you get started on DIY credit repair, take inventory of what you know and what you need to find out.\n### QUESTIONS\n**1) How long does it take to repair your credit?**\nA) 6 weeks\nB) 6 months\nC) It takes as long as it takes\n**2) How much time do you need to devote to your credit repair efforts?**\nA) 2 to 3 hours a month\nB) 2 to 3 hours a week\nC) It takes as long as it takes\n**3) How much can credit repair improve your credit score?**\nA) At least 50 points\nB) More than 100 points\nC) There are no guaranteed number of points your credit score will improve\n**4) What is the first step in the credit repair process?**\nA) Apply for a secured credit card\nB) Get copies of your credit reports\nC) Pay off old debts\n**5) What is debt validation?**\nA) When you verify with a debt collector that you owe a debt\nB) When a debt collector provides proof that you owe a debt\nC) The way a debt is listed on your credit reports once it has been paid\n**6) What does it mean if your debt has reached the Statute of Limitations?**\nA) You are no longer legally required to pay the debt\nB) The negative listing automatically falls off your credit reports\nC) Both A and B\n**7) To whom do you submit credit report disputes?**\nA) Credit bureaus\nB) Original creditors\nC) Collection agencies\nD) All of the above\n**8) How should you submit your credit report disputes?**\nA) Online\nB) Snail mail\nC) Fax\n**9) How can negative listings be removed from your credit reports?**\nA) Through the dispute process\nB) Through the debt settlement process\nC) Both A and B\n**10) What’s a good way to build positive credit?**\nA) Pay your bills on time, every time\nB) Keep your credit utilization ratio under 30 percent\nC) Return your credit cards to a zero balance every month\nD) All of the above\n### ANSWERS\n**1) How long does it take to repair your credit?**\nC) It takes as long as it takes\nThe credit repair process cannot be rushed. For most of it, you’ll be waiting on responses from the credit bureaus, creditors, or collection agencies. But even when negative listings are removed from your reports, you still takes time to add positive credit history. It could be several months, or a year or more, before you see a significant improvement in your credit score.\n**2) How much time do you need to devote to your credit repair efforts?**\nA) 2 to 3 hours a month\nHere’s what your monthly credit repair schedule might look like.\n**3) How much can credit repair improve your credit score?**\nC) There are no guaranteed number of points your credit score will improve\nThe only guarantee is that you will see _some_ improvement in your credit score at _some_ point…provided you follow the credit repair process and maintain good credit practices going forward.\n**4) What is the first step in the credit repair process?**\nB) Get copies of your credit reports\nYou are entitled to free copies – from all three credit bureaus – every 12 months. To request yours, go to AnnualCreditReport.com. Then go through each credit report with a fine tooth comb. Here’s what to look for. It is based on what you find in your credit reports that you will enter into the next step of the credit repair process – disputing listings with the credit bureaus.\nAs for paying off old debts, try debt validation first.\n**5) What is debt validation?**\nB) When a debt collector provides proof that you owe a debt\nIf a debt collector cannot prove that you owe a debt, then two things happen – you are not required to pay the debt and it must be removed from your credit reports. Debt validation is particularly effective for old credit card debt that the original creditor has sold to a debt buyer. The debt buyer may not have the documents necessary to prove you owe the debt. Make them prove it.\nLearn more about debt validation.\n**6) What does it mean if your debt has reached the Statute of Limitations?**\nA) You are no longer legally required to pay the debt\nHowever, the negative listing can still stay on your credit reports for up to 7 years, which means it will continue to negatively affect your credit. If you have a debt that’s close to the 7-year mark, you may want to wait for it to fall off. However, if it’s still a ways off, you may want to settle the debt (even though you are not legally required to pay it). Just be sure you’ve tried debt validation first. And if you do decide to settle, but sure to negotiate complete removal of the negative listing.\n**7) To whom do you submit credit report disputes?**\nD) All of the above\nStart with the credit bureaus. If your first dispute with the bureaus doesn’t work, try another. Keep at it until you have exhausted every possibility with the credit bureaus. If this does not resolve the issue, then move on to the original credit or collection agency.\n**8) How should you submit your credit report disputes?**\nB) Snail mail\nAll of the credit bureaus have online dispute options. However, it is recommended that you send your dispute certified mail with return receipt requested.\nBe sure to make copies of your dispute letter and make note of when you receive the return receipt. The credit bureaus have 30 to 45 days to respond after receiving your dispute. If they don’t, the listing in question must be removed from your reports.\nFind the letter template you need to tweak and send your dispute.\n**9) How can negative listings be removed from your credit reports?**\nC) Both A and B\nNegative listings can be removed from your reports through a successful dispute process. However, you can also negotiate the removal when you settle a debt.\n**10)** **What’s a good way to build positive credit?  \n**\nD) All of the above\nPay your bills on time, every time. Keep your credit utilization ratio under 30 percent. And return your credit cards to a zero balance every month. If you’re having trouble getting a new line of credit to start rebuilding, try a secured credit card. Just be sure it’s one that reports to the credit bureaus.\n### **How Did You Do?**\n**7 to 10 answers correct**\nWhat are you waiting for? If you haven’t already, request your credit reports today at AnnualCreditReport.com.\n**4 to 6 answers correct**\nGive yourself a quick review of the DIY credit repair process.\n**up to only 3 answers correct**\nCheck out this blog series that walks you through it every step of the way. END
 TITLE: How Auto Accident Can Affect Your Credit CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: March 21, 2017_\nThe National Safety Council (NSC) estimated that the total cost of deaths, injuries and property damage related to automobile accidents in 2016 totaled $432.5 billion. As if being hurt in an auto accident isn't bad enough, you may be doubly-challenged by the financial implications. Not only may you miss work (and a paycheck or more), but you may also find yourself responsible for unexpected medical bills. As with any other type of debt, when not handled promptly and appropriately, your credit can take a big hit. Get the facts regarding what does and does not affect your credit when you are in an automobile accident.\nIs an Auto Accidents Reported to the Credit Bureaus?\n----------------------------------------------------\nNo, auto accidents have no bearing on your credit history or credit worthiness. Auto accidents are not reported to credit bureaus or listed anywhere on your credit report.\nCan an Auto Accident Ruin My Credit?\n------------------------------------\nIn and of themselves, auto accidents do not affect your credit one way or the other. It is only the debt associated with auto accidents that can get you into trouble, if:\n1.  You have both auto and health insurance requiring coordination of benefits that somehow gets complicated.\n2.  Neither an auto nor health insurance policy covers your medical bills, leaving you personally responsible for the debt, but you fail to make acceptable payment arrangements.\nEither way, worst-case scenario is your unpaid medical bills get sent to a collection agency.\nWhat is Coordination of Benefits?\n---------------------------------\nIf you have both auto and health insurance through different companies, then coordination is required between them to determine which policy has primary responsibility for the debt, as well as what (if any) coverage the other policy may provide.\n### Possible Complications During The Coordination of Benefits Process\nDuring the coordination of benefits process, there is potential for trouble if:\n*   You do not submit your claim in a timely manner. Insurance companies may use a delay like this to technically (and legally) avoid responsibility.\n*   One or both of your insurance companies denies responsibility for the claim.\n*   One or both of your insurance companies drags out the claim process.\n*   One or both of your insurance companies makes clerical errors in the claim\/payment process.\nWorst-case scenario, these complications mean your medical bills go unpaid by either of your insurance companies.\n### Will My Health Care Provider Allow a Grace Period for Payment While the Insurance Companies Sort Out Liability?\nWhile it's no surprise to health care providers that auto accident coverage can be a complicated process, there is no set, formal grace period you will be allowed while your insurance companies sort things out. That said, your personal contact with their billing department can go a long way. Keep them in the loop of what's happening and you could buy yourself some time. Frequent contact throughout the process can help insure you're not sent to a collection agency unexpectedly and can, instead, make necessary payment arrangements to keep you in good standing.\n### How to Prevent Complications Associated with the Coordination of Benefits Process\nIf you have both auto and heath insurance:\n*   Give your health care providers complete information on both policies.\n*   As soon as possible, file a claim with both your auto and health insurance companies, being sure to get a claim number from each insurer.\n*   As soon as you have filed a claim with both insurance companies, give your health care providers both claim numbers.\n*   On a regular basis, for as long as is necessary, check in with your health care providers AND your insurance companies to see how the process is coming along, acting as a facilitator of sorts to help insure nothing slips through the cracks.\n### If the Claims Process is Taking Longer Than My Health Care Providers are Willing to Wait, How Can I Avoid Being Sent to Collections?\nIf you have insurance coverage, never give up the claim. Keep at it and keep on them, often! At the same time, keep your health care providers in the loop, making every effort you can to delay collection. If and when it can be delayed no more, and the claim has yet to be settled, it is in your best credit interest to bite the bullet and make a payment arrangement if it means keeping you from being turned over to a collection agency. END
 TITLE: How Auto Accident Can Affect Your Credit CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: How Auto Accident Can Affect Your Credit CONTENT:    |  |  |  | \n: . END
 TITLE: Credit Repair Mistakes Can Lower Your Score CONTENT: Seemingly Innocent Ways You Can Lower Your Credit Score\n-------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 31, 2017_\nCredit repair information and credit repair misinformation is available on the Internet and even more bad advice can be had when listening to friends and family. One person says to do this and then another says to do that, when in actuality, you really have to look at your own situation and determine what credit repair tactics will work for you.\nThere may be some financial moves you have made, or are going to make, that at first glance may seem harmless but in the long run can really do a number on your credit. You might not realize the significant fall-out to the following seemingly insignificant financial moves until it is too late. This article is meant to set the record straight and try to steer you in the right direction when is comes to repairing your credit. Here we touch on five of the most common mistakes people make when fixing their credit which leads to lowering their credit score.\nKeeping a Zero Balance\n----------------------\nI know we beat it into your head that you should be paying off your debts, but, paying off a credit card completely every month does not help your credit score - it doesn't hurt it either. When you pay off your card and have a zero balance on this line of credit, it does not factor into your credit utilization ratio. This ratio is the percentage of your credit limit that is being used and factors into 30 percent of your credit score. Here is how to calculate your credit utilization ratio:\n1.  Locate your credit balance and credit limit on your last billing statement.\n2.  Divide the credit card balance by the credit card limit.\n3.  Multiply that number by 100. The lower this number, the better.\nLeaving a small balance on your card each month will help to increase your credit score. Oddly, your credit score can actually drop when you bring a card balance down to zero. Go figure!\nKeeping a High Balance\n----------------------\nNow on the other side of the spectrum, having high balances on your credit cards is not good for your score either. As we mentioned already, the amount you owe on your accounts determines about 30 percent of your credit score. Lenders consider those who use a low percentage of their credit, say around 35 percent or less, to be a low credit risk. And being a low credit risk means getting lower interest rates on your loans.\nSpending 80 to 90 percent of your available credit limit will negatively affect your credit score. As we saw in the calculations above, having a high credit card balance will equate to having a higher credit utilization ratio which will lower your credit score. Moral of the story, keep you balances low but not at zero.\nNegotiate a Lower Annual Percentage Rate\n----------------------------------------\nNegotiating a lower annual percentage rate on your credit card may seem like a smart move for cutting expenses and boosting your savings account, but when you do, ensure that your creditor doesn't reduce your credit limit. If that happens, it could affect your credit utilization ratio and lead to a drop in points.\nClosing a Credit Card Account\n-----------------------------\nIf you've scrimped and struggled to pay off a card, your initial reaction may be to cut up the plastic and close the account. Resist the urge. Various factors are taken into account when calculating your creditworthiness, and 15 percent of your score is determined by the length of your credit history. By closing an account, especially an older one, you shorten your credit history. The more established accounts you have, the higher your credit score.\nCredit card companies also look at how much of your available credit you are using, i.e. your credit utilization rate. As we mentioned before, they like to see 35 percent or less of your credit in use at any one time. Paying off a credit card and leaving it open improves your utilization score, but closing it could do just the opposite.\nApplying for New Credit\n-----------------------\nWe are not saying to never apply for new credit, just make sure to do so very gingerly. Every time you apply for a new credit card, car loan, or cell phone plan, someone is going to pull your credit. This credit inquiry constitutes a \"hard inquiry\" which is likely to ding your credit score.\nSo, if you are looking for a good interest rate, which means you are rate shopping, make sure every lender you visit is not pulling your credit first. Make your final decision BEFORE having your credit pulled by the lender so that way there will only be one hard inquiry on your credit report.\nIt may seem like maintaining a good credit score is hopeless, but there are ideals you can strive for to achieve a good credit rating. Naturally, some of the above mentioned transactions are easier to avoid than others. By knowing the threat they pose to your credit, you can better understand when these moves really make sense. To sum it up:\n*   The ideal number of loans or credit lines open is 6 to 21.\n*   The ideal number of credit inquiries is 0 to 3 in the last 6 months. When shopping for the best interest rates, have the lender do a \"soft pull\" of your credit.\n*   A 5+ year credit history is ideal. The longer the credit line is open, the better.\n*   Five to 85 percent credit line utilization is ideal. Again, you don't want the balance to be zero nor do you want to have your credit card maxed out.\nKeeping these five common mistakes in mind while you are repairing your credit, will save you lots of anguish down the road. There is nothing more frustrating than thinking you are doing the right things when in actuality, it is hurting your credit score. END
 TITLE: How a Short Sale Can Hurt Your Credit CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: March 30, 2017_\nYou will find a lot of articles about foreclosures on this website, but not a lot of attention has been given to short sales. There is a lot of misinformation on the Internet as well as information from your friends and family on whether or not you should do a short sale on your house or just walk away from it and let it go into foreclosure.\nBefore we dive into whether or not a short sale will hurt your credit, you first need to understand what is a short sale and what is the difference between that and a foreclosure.\nShort Sale vs Foreclosure\n-------------------------\nA short sale is a property that sells for less than the balance owed on its mortgage. The bank must agree to grant a short sale and they are under no obligation to do so - and if the bank feels it is in the bank's best interest to approve this type of sale.\nA foreclosure is where the home buyer has stopped making their monthly mortgage payments to the bank. There are numerous reasons why this has happened but the number one reason is that the house is worth way less than what the mortgage balance is so the owners do not want to throw away any more money. The owner would rather \"walk away\" from the house and let the bank take it over.\nBasics of a Short Sale\n----------------------\nShort sales happen when a lender agrees to accept less than the amount owed against the home because there is not enough equity to sell and pay all costs of sale. Not all lenders will negotiate a short sale, and that is why a real estate agent or a lawyer can be a tremendous help by contacting the lender's loss mitigation department to find out. One aspect of a short sale is that lenders will generally not even consider a short sale if your payments are not current. So, if you are thinking of pursuing a short sale, keep paying your mortgage payments. This may not only help get your short sale approved, but it will also keep your credit score in tact - late mortgage payments can have a tremendous negative affect on your credit score.\nHow Will a Short Sale Affect Your Credit?\n-----------------------------------------\nThis seems to be the million dollar question, so to speak, and one which does not really have a clear cut answer. Reviewing all the available information, it seems there are as many answers to this question as there are supposed experts in short sales. Bottom line, a short sale will indeed negatively affect your credit score but the amount of the hit on your score is still out for debate. Some say it is as bad as a foreclosure while others say you will not be hit that bad. A lot of it has to do with how was your credit before the short sale and if you are current on your mortgage payments or not.\nFair Isaac recently released a report that says credit scores are affected about the same, whether you do a short sale or a foreclosure. Fair Isaac says the average points lost on a FICO score are as follows:\n*   30 days late: 40 to 110 points\n*   90 days late: 70 to 135 points\n*   Foreclosure, short sale or deed-in-lieu: 85 to 160 points\n*   Bankruptcy: 130 to 240 points\nAccording to a mortgage broker in California, \"the effect on a consumer's credit file - foreclosure vs short sale - is the difference between being hit by a train or a bus.\" Wow, that is comforting!\nCan You Buy Another House After a Short Sale?\n---------------------------------------------\nBeing able to turn around and buy another home after a short sale depends on whether or not you kept your payments current during the short sale process. FHA adopted guidelines in 2010 that say a seller who is current and does a short sale may qualify to immediately buy another home. Other lenders, such as Fannie Mae, also followed these guidelines but you will need to do a little homework to see which banks are willing to give you another loan right away.\nIf you let some of your payments become delinquent, not only did that hurt your credit but lenders are now going to wait as much as 2 years before they will give you a loan. That is a far cry from the 5 to 7 years you will be waiting if you let your house go into foreclosure.\nWhich is Better a Short Sale or a Foreclosure?\n----------------------------------------------\nIt matters not to a lender why you failed to make your mortgage payments, only that you did. So, unless you can avoid being seriously delinquent, there is no credit score advantage to a short sale over a foreclosure. If you are able to minimize the immediate damage to your credit score and you can keep your payments current, this will allow you to obtain credit, such as auto loans or credit cards, thereby putting you on the road to credit recovery faster than those who suffered a serious delinquency on their credit report.\nA homeowner who stops making payments at the beginning of the short sale process will have a very similar credit score effect as those who go through foreclosure. Each missed payment negatively impacts your credit score regardless of whether the house is sold as a short sale or foreclosure. As a result, your credit will be seriously damaged by either event if you allow yourself to become seriously delinquent.\nSo, the moral of the short sale story, if you have to go down this road, keep your payments current. Having little to no late payments will help you recover from the short sale and will help you get your next loan quicker. Your credit score might take a little ding, but not as big of a ding if you let your payments get delinquent. END
 TITLE: Bad Credit Costs You More in Higher Interest Rates CONTENT: Bad Credit Means Higher Interest Rates Which Cost You More Money\n----------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 21, 2017_\nDid you know that having bad credit will cost you thousands of dollars over the course of your lifetime because you are paying a higher interest rate? Think of all the money you spend on interest every month on your home loan, credit cards, and auto loans. A low credit score means you are paying a very high interest rate which translates into a lot of extra money spent each month.\nIn this tight economy, lenders are particular on who they lend money to and at what interest rate. If you have bad credit, they are going to hit you with a high interest rate whereas a person with excellent credit, is going to enjoy the benefits of a low interest rate. Which person would you rather be? Tough choice — huh?\nCost of Loans with Bad Credit\n-----------------------------\nTo illustrate our point, let's take two fictitious people, Bob and Nancy. Bob has a FICO credit score of 720, an excellent credit score, whereas Nancy's FICO score is 650, a fair to poor credit score. Now, let's look at a scenario where they are both buying a car for $20,000 on a 60-month loan.\n*   Bob takes out a 4 percent interest loan and his payment is $368.33 per month.\n*   Nancy takes out an 18 percent interest loan and her payment is $507.87 per month.\n*   At the end of 60 months, Nancy will end up paying $8,672.40 more for the same car.\nNow, let's look at another example where Bob and Nancy buy a house for $150,000.\n*   Bob's interest rate is 4 percent making his monthly payment $716.00.\n*   Nancy's interest rate is 10 percent which makes her monthly payment $1,316.00.\n*   Nancy has to come up with $600 more a month for the same house.\nLong Term Affects of Bad Credit\n-------------------------------\nIn our example above, you were able to see the short term affect bad credit can have a person. Nancy has to pay so much more for the exact same products but what does that mean in the long run? Well, if they make about the same salary, the person with bad credit has less \"fun\" money at the end of the month. Money that could be spent on going out to dinner, taking a vacation, or maybe just investing in a retirement account. When you have bad credit, more than just your wallet is affected. Bad credit affects your family, your well-being, and your overall quality of life.\nPeople who have bad credit never seem to get ahead of the game because they are spending much more for the same things. That is why is it so important to work on increasing your credit score and cleaning up your credit. Removing negative items, consolidating loans, paying off debt, and paying your debts on time are all things each of us can work on each and every month. A little effort can go a long way.\nGet out of Bad Credit Hell\n--------------------------\nNow that you see how much money bad credit can cost you, how do you get out of bad credit hell? It is really quite simple, but it will take some dedication on your part. Just think about all the money you are going to save for that vacation to the Bahamas and that should keep you pretty well motivated. Here are some basic tips:\n*   **Pull Your Credit Reports.**  You need to see what is on all three of your credit reports before you tackle the problem. You can get your credit reports for free, once a year, from AnnualCreditReport.com. \n*   **Take Note of All Negative Items.**  Mark off all the negative items on your report and begin the task of disputing these. Our article on \"Disputing Negatives with Original Creditor\" will show you the way.\n*   **Pay Your Current Accounts On Time.**  Start paying your open accounts on time and start paying them off. Consolidate them by taking out a low interest low and pay them off.\n*   **Open Some Different Lines of Credit.**  Your credit score will benefit from varied types of accounts and make sure to pay these on time and keep low balances on them as well.\nOnce your credit score increases, you can then apply for loans with lower interest rates. Get rid of all those high interest loans and you will start to see some extra money in your pocket at the end of the month. Your vacation on the beach in the Bahamas is really not that far away! END
 TITLE: Bad Credit Costs You More in Higher Interest Rates CONTENT:    |  |  |  | \n: . END
 TITLE: Cost of Living Expenses are Higher with Bad Credit CONTENT: Paying More in Living Expenses With Bad Credit\n----------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 24, 2017_\nThinking about buying a house or a car in the near future? If so, you will need to review your credit reports to see just how bad (or good) your credit really is. The average American credit score is currently hovering in the mid to low 600's, which means you could have bad credit. Now, you could just let it go and not do anything more about buying a car or house, but soon you will be in for a rude awakening. Crucial living expenses are going to cost you a whole lot more with bad credit.\nRepairing your credit is a relatively simple process. By making your payments on time and paying off your credit card and other debts, your credit score will improve. But if you don't work at increasing your credit score and fixing your credit, some basic living expenses are going to cost you much more compared to a person with good to excellent credit. Keep reading to find out how.\nMortgage Loans\n--------------\nLenders rely on your three-digit score to determine how likely you are to pay your bills on time. A low credit score tells them you are a risky borrower, one who is likely to pay their bills late or maybe not at all. A FICO score of 740 or higher means you have excellent credit and a score of 640 or lower is poor credit. What will this mean when you get a house? As quoted from Tim Lucas, editor of MyMortgageInsider.com,\n_\"Borrowers with a FICO credit score of 740 today could qualify for a 30-year fixed-rate mortgage loan with an interest rate of 4 percent. A borrower with a FICO score of 640 would be charged an interest rate of 4.375 percent for the same loan. On a 30-year loan of $250,000, the borrower with lower credit would pay $55 more every month. That comes out to almost $20,000 if that borrower pays off the mortgage in full over 30 years.\"_\nAnd borrowers with an even lower score will be charged even higher interest rates that will cost them even more money each month. On the surface, a slightly higher interest rate might not seem that big of a deal until you figure how much more you will pay at the end of the year.\nApartment Rent\n--------------\nMaybe you are not in the market to buy a house and you think having good credit does not apply to you. Guess again. Landlords check your credit before approving your application for an apartment. If your score is too low, a landlord or rental management agency will view you as someone who may miss monthly rental payments. Because of this, you might be charged a higher monthly rent or you may have to come up with a larger upfront security deposit before you move in.\nSo even if you don't plan to ever buy a house, renting an apartment may be difficult and more costly with bad credit. You might have to have a parent or another person co-sign on a lease for you in order to build up your credit score.\nInsurance\n---------\nAutomobile insurance is an expense you can not live without if you plan on owning and driving a car. It might surprise you to know many insurers charge consumers with low credit scores higher rates for auto insurance. Insurers say that drivers with good to excellent credit tend to get into fewer accidents and thus file fewer claims. That is why drivers with bad credit are charged more for auto insurance. If you live in Hawaii, California or Massachusetts, these states are not allowed to use credit scoring when setting policy rates for auto insurance.\nThis same argument is being used for home owners insurance. Again, insurers says those with good to excellent credit file fewer claims compared to homeowners with low credit scores.\nAuto Loans\n----------\nUnless you have enough money in the bank to pay for you next car with cash, you will be taking out an automobile loan on that new convertible. Even though auto loans may be smaller than mortgage loans, a higher interest rate will still add up to larger monthly payment and more interest paid over the term of the loan. The difference between an interest rate of 3.5 percent on a $15,000 five-year car loan and one of 5 percent on the same loan can really add up.\nBut what about all those low interest rates you see advertised on T.V.? Those rates are for people with the best credit scores - the better the credit score the better you look to lenders. So unless you have good to excellent credit, you are going to be paying more for the same car because the interest rate on your loan will be much higher.\nCredit Cards\n------------\nOn this site, we have dozens of articles about credit cards and most of us know credit cards already come with high interest rates. The credit card market changed drastically after the economic melt-down in 2008. Gone are the single digit interest rates. Today, even people with good to excellent credit can expect to be above 10 percent interest on a credit card. So imagine the interest rates for consumers with bad credit! Even a few points difference in the interest rate on credit card debt can have a a significant impact on your budget.\nSay you have credit card debt of $5,000 at 18 percent interest. If you only make the minimum required payment each month to pay off that debt, you'll pay more than $3,000 extra in interest than if you only made the minimum payment each month and your interest rate was 13 percent. That is a much bigger burden, which is why high-interest credit card debt can be so difficult to manage and pay off.\nWhen you have bad credit, the every day living expenses you take for granted will cost you more. More and more lenders, landlords, and insurers are looking at a person's credit score to determine if they will be a good customer for them. A credit score is much more than just three numbers, it is being used as a direct reflection of you as a consumer and what type of customer you will be in the future. Businesses have become very careful about who they lend money to and who they let rent their apartments. So put your best foot forward by having a good credit score. Increase your credit score by repairing your credit and you will lower the cost of your crucial living expenses. END
 TITLE: Bad Credit May Affect Landing a Good Job CONTENT: Clean Up Your Credit if You Want These Jobs\n-------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 29, 2017_\nIt's no surprise unemployment is a major contributing factor to bad credit. If you're not making money, you can't pay your bills and if you are not paying your bills on time, you are getting late payment dings on your credit reports. What few people realize, though, is that bad credit contributes to unemployment, some positions more so than others. While it's certainly possible you'll be hired for one of the following jobs despite bad credit, chances are slim, especially in a tight job market.\n1.  Senior Executive\n2.  Mortgage Professional\n3.  Accountant\n4.  Bank Teller\n5.  Store Manager\n6.  Salesperson \/ Retail Associate\n7.  Delivery Driver\n8.  Military \/ Government Position\nOf course, this is by no means an exhaustive list. Any job is a candidate for a credit check if it requires dealing with finances and\/or being privy to confidential information. That said, any employer could request a credit check, so anything is possible.\nIs It Legal For Employers to Check Credit Reports?\n--------------------------------------------------\nIt depends on where you live. If you live in a state where an employer can legally pull your credit, they must first request your permission and receive your consent in writing. However, there are 11 states which have laws in place prohibiting employer credit checks and\/or restricting how this information can be used in the hiring process. These states are: California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Nevada, Oregon, Vermont, and Washington.\nHow is a Credit Report an Indication of Job Performance?\n--------------------------------------------------------\nActually, studies show it's not. Yet employers increasingly cite bad credit as an indication of questionable character and irresponsibility, as well as potential for fraud and theft. Bottom line, employers are looking to limit their liability for making poor hiring decisions.\nCan You Refuse a Credit Check?\n------------------------------\nYes, you are by no means required to submit to a credit check by a potential employer. Understand, though, that your refusal probably means you won't be considered for the job. This again, depends on the state you live in.\nDo Employers Check Credit Reports?\n----------------------------------\nThough the number of employers checking credit has fallen in recent years, it is still a common practice. In 2014, 47 percent of employers used credit checks. Thirty-four percent of employers say they only check credit of those being considered for certain positions, whereas 13 percent say they check the credit of applicants for every position.\nCan I Be Turned Down for a Job Because of Bad Credit?\n-----------------------------------------------------\nIt's impossible to say with any certainty, but chances are good. One study of unemployed Americans found that one in four of them were subjected to a credit check as part of a job application process. Of the same group, one in ten were told the credit check influenced the decision not to hire them.\nWhat do Employers Consider the Reddest Flag on a Credit Report?\n---------------------------------------------------------------\nSince potential employers do not see your credit score, your credit report is up to subjective interpretation. However, old, unsettled debt likely counts as the biggest strike against you.\nDoes Credit Matter More than Relevant Work Experience?\n------------------------------------------------------\nAgain, it depends on the employer, but largely, no. In fact, 87 percent of employers say previous work experience is the single most important factor when considering a job applicant. It's worth noting, however, that 14 percent of employers actually rank credit at the top of the list.\nHow Can I Improve My Credit?\n----------------------------\nThere is no quick-fix solution to bad credit. However, there are steps you can (and should) take to clean up your credit — for the good of your job search, as well as your financial future. First of all, request your credit reports from all three major credit reporting agencies through AnnualCreditReport.com and follow these steps.\n1.  Go through each report carefully\n2.  Look for errors and old, unpaid accounts no longer with the original creditors\n3.  Dispute these items with the credit bureaus\nSee our extensive resources on debt validation for more detailed information on this process. END
 TITLE: How to Repair Your Credit After Filing Bankruptcy CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: March 23, 2017_\nFiling bankruptcy is never an easy decision and should not be taken lightly. But sometimes it is the only way to get back on your feet financially. If you have tried everything you possibly can and there is still no way out from under that mound of debt, you may have nothing left to do but file for Chapter 7 or 13 bankruptcy. \nA bankruptcy can remain on your credit report for up to 10 years and there is a good chance your FICO score will be lowered because of it. But fear not, there are ways to repair your credit after a bankruptcy.\nReview Your Credit Reports\n--------------------------\nAfter the bankruptcy dust settles, the first thing you should do is obtain a current copy of all three credit reports. You can request a free copy of your Experian, Equifax, and TransUnion credit reports once a year from AnnualCreditReport.com. These reports do not come with a credit score but you can get your score for a small fee. There are also numerous companies which offer a free credit score if you sign up for their credit monitoring service. This is a good idea if you would like to check your report numerous times throughout the year and if you want to be notified of changes on your report. We have list of recommended companies.\nStay Current on Your Monthly Payments\n-------------------------------------\nThis might sound obvious but it is worth saying. Your payment history makes up 35 percent of your credit score so one of the easiest ways to increase your score it to pay your bills on time.\nIf you are one of those forgetful people, set up reminders on your iPhone or Android calendar or set up automatic payments. This way you will not only ensure timely payments, it will make the task easier for you and less stressful.\nApply For New Types of Credit\n-----------------------------\nIf you didn't keep a major credit card account open during your bankruptcy, it is a good idea to get one after your bankruptcy has been discharged. You may have to start with a secured card, which requires that you place a security deposit with the issuer to open the account. Once you get the card, make sure to make timely payments and pay your bill in full every month. You don't have to carry a balance on your card to build good credit.\nAdd a Loan to Your Portfolio\n----------------------------\nOnce you have gone a year or two post-bankruptcy, consider getting a car loan or a line of credit. If it's a car loan, buy a vehicle that is affordable and that you can pay off successfully. Shop around for the best rate, and keep in mind that once you have raised your credit scores, your next interest rate on a loan will likely be much lower. The best place to get a car loan or a line of credit, after a bankruptcy, is your local credit union. They are more eager to help a person build up their credit than a traditional bank.\nBeware of Credit Repair Services\n--------------------------------\nYou may receive offers from credit repair services promising to help repair your credit. Make sure you thoroughly investigate these services before you use them. On our site, we recommend Lexington Law as we feel they are one of the few reputable companies and we have actually visited their offices.\nYou can repair your credit on your own and as you probably have already noticed, this website is loaded with DIY credit repair and debt settlement information. There are many ways you personally can rebuild your own financial future at no cost.\nKeep Your Credit Balances Low\n-----------------------------\nAgain, once you begin re-establishing credit, it is crucial to know the limits on your credit cards and to keep your balances well below them. You may have a very low limit due to your credit history but that's OK. Use your cards sparingly and continue paying the bill on time.\nDo Not Close Credit Accounts\n----------------------------\nIf you have accounts that were not closed due to the bankruptcy, you may think you're doing the right thing by closing this other lines of credit and swearing off all credit cards. This action does far more damage to your credit than you might think. Closing accounts reduces the amount of credit you have available to you which leads to lower credit scores. It's best to keep the credit lines open. If you're tempted to spend, cut up the cards. That way you will not use them and start racking up high balances - which is what got you into the bankruptcy mess to begin with!\nThe most important lesson to learn is to be patient. The road to bankruptcy did not happen overnight. And neither will the road to improving your credit. By following the guidelines above, you can move toward a better financial future and increase your credit score. END
 TITLE: Credit Repair For Married Couples CONTENT: Repairing Credit as a Couple\n----------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 24, 2017_\nIf you're married, you have probably gone through the process of merging his and her belongs all together. But credit history is not among them. Many new couples assume that a new, merged credit report is created after they get married. Not true. Even if you're married, your spouse's individual credit history cannot be merged with yours.\nBuilding a financial future together can be challenging for even the most like-minded couples. But when newly married partners have different credit histories, blending finances can be difficult and, in some cases, even unwise. That said, if you plan on making major purchases together, you are not immune to the consequences of your significant other's bad credit. If their credit is poor, even the best of credit on your part won't be enough to garner you the best interest rates on loans you'd like to take on together. In fact, you may not be able to qualify for joint financing at all. Fortunately, as long as one of you has good credit, you are in an exceptionally favorable position to help with credit repair efforts.\n1.  **Pull both of your credit reports.** Order your credit reports from all three credit reporting agencies. Go through them, item by item, making note of any and all negative listings. Then for each listing, send a letter to each credit bureau requesting validation of the debt. Refer to our comprehensive article on this process of debt validation. Note, this is a process that can take months, but diligence and patience on both your parts will be well worth the effort.\n2.  **Pay off recent debt.** Help your significant other pay off the most recent debt that has not been charged off and\/or debts that have not been sent to collections. With both your incomes, together you should be able to pay off the debt twice as fast.\n3.  **Co-sign on a credit card.** Once you have gone through the process of removing all the negative listings possible from your credit reports, and paying off recent debt, consider co-signing on a credit card with your partner. Provided you keep the card in good standing, paying off the balance every month, both of your credit scores should benefit.\n4.  **Make a budget together, and stick to it.** If you haven't already, take the time to go through your income and expenses with a fine tooth comb. It helps to record every penny earned and spent over a months' time to get a sense of where your money is going, and where you can cut back.\nThe benefits of partnership with the one you love are infinite, offering countless ways to improve your quality of life together. Working together to improve each other's credit can be among them. It may take some time and effort, but in the long run, all of this hard work together will pay off in lower interest rates on loans and money saved for those much needed vacations together. END
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 TITLE: Can Bad Credit Affect Employment CONTENT: Can Employers Use Bad Credit Against You?\n-----------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 20, 2017_\nWhen looking for a job, you need all the help you can get presenting yourself as the ideal candidate to a potential employer In today's tight job market. A solid resume, references and interview skills, are all great to have but these days you could be sorry if you overlook another, all-important area, your credit report. When competition is tough, bad credit could be what tilts the scales in another candidate's direction. So, make sure to pay attention to your credit reports while you are sprucing up your resume.\nDo _Potential_ Employers Have Legal Right to Pull Credit Reports?\n-----------------------------------------------------------------\nYes, and many do. According to a survey conducted by the Society for Human Resource Management, as many as 6 in 10 private employers pull credit reports for the purposes of hiring at least some of their candidates. And as many as 13 percent of them run credit on all of their applicants. That said, some states have laws enacted limiting the rights of employers when it comes to pulling credit reports for potential or current employees. Check the rights specific to your state if you live in California, Colorado, Connecticut, Hawaii, Illinois, Maryland, Nevada, Oregon, Vermont or Washington.\nDo _Current_ Employers Have Legal Right to Pull Credit Reports?\n---------------------------------------------------------------\nYes, though it's not clear how many are likely to pull a credit report for the purposes of evaluating a current employee. However, there may be reason to do so that run the gamut from consideration for a promotion to grounds for termination.\n### Why Do Employers Base Hiring, Promotion and Firing Decisions on an Employee's Credit Report?\nThough there is no research supporting a correlation between credit history and job performance, employers evidently see things differently. Reasons cited for running credit reports on potential employees include fear of theft or embezzlement, being sued for hiring someone who turns out to be a bad egg, and general association between bad credit and irresponsibility. In other words, proven or not, some employers choose to associate bad credit with questionable character, which isn't the most marketable of qualities.\n### What Positions are Credit Reports Most Often Pulled?\nEmployers across all industries pull credit reports for hiring purposes, though the majority are limited to positions in which employees handle money and\/or are privy to personal information, such as credit card numbers and social security numbers.\n### Will You Be Informed if an Employer Pulls Your Credit Report?\nYes, in fact, your written permission is required to do so. This means you have the legal right to refuse, but by the same token, the employer has the legal right to dismiss you as a job prospect. On the other hand, if you do grant your permission, and the report turns out to be the reason for a hiring, promotion or firing decision, the employer is legally required to tell you so. Not only that, but they must disclose which credit reporting agency provided them with the report, as well as a copy of the report for you to review.\nWhat Information do Employers See on Credit Reports for Current or Potential Employees?\n---------------------------------------------------------------------------------------\nWhat employers see on your credit report is essentially the same as what lenders see when they pull your report, with two notable exceptions. First of all, personal information is removed, such as sex and marital status. Also, if you make over $75,000 a year, the report employers see will include listings that fall off of the versions seen by lenders, such as bankruptcies more than ten years old, or lawsuits, judgments and paid-off tax liens more than seven years old. Also keep in mind that employers may see previous employers listed on your credit report. This is important to note, as they may see on your report an employer that you did not list in your job application - a discrepancy that could be viewed as an attempt to hide some sort of past employment.\nPoor credit in general can color an employer's opinion of you, but the listings weighted most heavily against you are current outstanding judgments and accounts currently in debt collection. In other words, older, settled debt is unlikely to pose as much of a problem, even in the case of foreclosures and tax liens. What this suggests is that employers may be relatively forgiving of bad credit, provided it's part of your past.\nWhat if a Credit Report Pulled by a Potential or Current Employer Includes Inaccurate Information?\n--------------------------------------------------------------------------------------------------\nUnder any circumstances, you have the right and responsibility to dispute any listings you believe to be inaccurate in your credit report. In fact, you have the right to dispute any negative listing at all, whether it's accurate or not. Here at CreditInfocenter.com, we have all the information you need to dispute these negative listings with credit agencies, which then have 30 to 45 days to provide requested proof. If and when they fail to do so, the listing must legally be removed from your report.\nHow to Prepare for a Job Search If You Have Bad Credit\n------------------------------------------------------\nThe more you know the better. Just a vague idea of bad credit you checked a few years back isn't enough. Credit listings change regularly and without any notice to you. It is essential you get current copies of your reports from all three major reporting agencies before your job search begins. This way you know just how bad it is and, most importantly, you can prepare an explanation if and when an employer tells you it's your bad credit report that did you in. A short, but sweet, heartfelt explanation of how you got into the mess, and how you got out, could do the trick. Beyond that, start cleaning up your credit! We have a wealth of information here at Credit Info Center on how to do just that. END
 TITLE: Can Bad Credit Affect Employment CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Credit Repair After Late Payment CONTENT: Steps to Repairing Credit After Late Payment\n--------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 24, 2017_\nDo you know that just one late payment can knock up to 100 points off your credit scores? That’s a big chunk that can easily send you into subprime credit score territory. Thus, the importance of repairing credit after late payment is made. While you may not be able to have it removed from your credit reports, you can at the very least minimize the impact. Having said that, we can not stress enough the importance of trying to never ever make a late payment on your credit card, car, or mortgage payment. Also, every lending institution has their own version of what is a \"late payment\" so read your contract to make sure you are aware of the time contraints of your payments.\n1) Make sure the late payment listing is correct\n------------------------------------------------\nIf it just happened and you remember being late, that’s one thing. But if it’s an old late payment you just noticed on your credit reports, check your statements to be sure you really were late that month.\nIf you see that you weren’t late that month – or don’t have the proof but don’t believe you were – then it’s worth disputing with the credit reporting bureau. They are required to investigate; if the creditor cannot provide proof you were late that month, the listing must be removed from your credit reports.\nA late payment can stay on your credit reports for up to 7 years. While its impact on your credit score will lessen over time, it will still be there for potential creditors to see when they pull your credit reports. What’s worse is if it’s not even true. Dispute that listing!\nOn the other hand, if you remember being late, or the creditor provides the necessary proof, move on to step two.\n2) Get current on the account\n-----------------------------\nAt first, it won’t matter much, as the newer a late payment is, the more of an impact it will have on your credit scores. But the more distance you put between the late payment and a string of on-time payments, the more your credit scores will start to improve.\n3) Increase your chances for staying current\n--------------------------------------------\n_Never forget to make a payment._ You can nip that in the bud right now by setting up auto pay, either through your creditors or through your bank.\n_Make your payments more affordable._ Never charge more to your credit cards than you can pay back in full by the due date. If it’s an installment loan, look into refinancing at a lower interest rate, the aim being to lower your monthly payments.\nAs bad as one late payment is, what’s worse is multiple late payments. As much as they might hurt your score, you won’t get docked 100 points for every single one (it doesn’t work like that). But it looks much worse for a creditor to see multiple late payments on your reports as opposed to just one.\n4) Practice other good credit habits\n------------------------------------\nOne of the best ways to deal with a late payment on your credit reports is to dilute it with positive credit behavior, like:\n*   Paying _all_ of your bills on time, every time\n*   Never using more than 30 percent of your available credit on your credit cards\n*   Returning your credit cards to a zero balance every month\n*   Making a plan to pay off high credit card balances\n*   Taking other steps in the repairing credit process (e.g., debt validation, debt settlement, disputing _other_ errors on your credit reports)\n5) Ask the creditor to remove the late payment listing\n------------------------------------------------------\nAgain, late payments can stay on your credit reports for up to 7 years, so asking your creditor to remove the listing is worth a try. Sure, it’s a long shot, but it’s not an impossibility.\nOnce you’re current on the account – and have several months of on-time payments under your belt – consider asking your creditor to remove the late payment listing. A great way to do this is with a Goodwill Letter. They are under no obligation to do so, but they might, especially if you were only late one month, you were going through a financial hardship, and have since been keeping the account in good standing.\nIt’s Well Worth the Extra Work\n------------------------------\nWhile all of this might seem like a lot of hassle to try and negate the effects of just one late payment on your credit reports, keep in mind that a late payment is a huge indicator of credit risk. It takes a big bite out of your credit score and it looks bad to creditors who see it on your reports.\nIdeally, you can have the late payment removed. But, at the very least, you can add as much positive credit as possible – not only to boost your scores, but to prove the late payment is just a blemish on a credit history that’s been squeaky clean ever since. END
 TITLE: Repair Your Credit After Repossession CONTENT: Repairing Credit After Repossession in 3 Easy Steps\n---------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 23, 2017_\nAs though it’s not tough enough losing your car to a repossession, your credit takes a huge hit, too. How much of a hit depends on how high your credit score was before the repossession. According to Bankrate, you could be looking at losing anywhere from 60 to 240 points. Needless to say, repairing credit in the wake of that damage needs to be a top priority. Here’s how.\n**1)** **Find out if your state allows you to “reinstate” the loan**\n--------------------------------------------------------------------\nIf your state has a consumer protection law allowing for it, then you may be able to reinstate your car loan simply by paying the past due amount and covering the cost to the lender for the repossession. While this will not remove the repossession from your credit reports, it will give you an opportunity to make good on the loan. In the short term, the repossession will hurt your credit considerably, but if you reinstate the loan, you’ll at least have an opportunity to bring the account into good standing _and_ keep your car.\nReinstating a loan should not to be confused with “redeeming” a car (i.e., buying it back) after it has been repossessed. You certainly may do this. And, in fact, some states require you to be notified if and when they’re selling the car so that you have an opportunity to buy it back. But in those cases, you’ll have to come up with the full price of the car, which may prove difficult if you didn’t even have the cash on hand to make your monthly payments. Just keep in mind that if you are able to redeem the car, the repossession will still remain on your credit reports.\n**2)** **Pay off any deficiency**\n---------------------------------\nIf the repossessed vehicle is resold for less than what you owe on the loan, then you are responsible for the deficiency. You do not want that unpaid balance on your credit reports, not to mention the fact that your lender can sue you for it. So negotiate a payment plan as soon possible. Just be sure that, during these negotiations, you ask the lender if – after you pay the difference – they will report the account as “Paid in full.”\n**3)** **Start building positive credit history**\n-------------------------------------------------\nOnce a repossession is on your credit reports, it’s going to be on there for up to 7 years. Unless it is a reporting error, there is nothing you can do to change that. What you can do, though, is flood your credit reports with positive credit history:\n*   Make sure you pay all of your bills on time, every single month. Late payments can stay on your credit reports for up to 7 years, too. Sure, you had late payments leading up to the repossession, but try and look at your credit as a clean slate from that point forward. You’re rebuilding from the ground up.\n*   Manage credit cards wisely. Return your balances to zero every month. And never use more than 30 percent of your available credit at a time. For instance, if you have a credit card with a $1,000 credit limit, and it has a $300 balance, you don’t want to use that card again until you pay it off by your due date.\n*   If you don’t have a credit card, get one. No matter how badly a repossession hurts your credit, you should still be able to qualify for a secured credit card. You’ll just have to pay a deposit that is typically equal to the credit limit. The key to being approved is making sure you apply for a credit card for which your credit score qualifies you. So if you don’t know your credit score, find out.\n*   Start chipping away at big credit card debt. If it’s so high that you cannot possibly return the balance to zero every month then it’s time to (a) stop using the card (if you haven’t already) and (b) start paying it off.\n*   Look for errors on your credit reports. You just might find that something inaccurate is dragging down your credit scores unnecessarily. And that’s the last thing you need when you’re already dealing with a repossession. Learn how to dispute errors with the credit bureaus, as well as other techniques to be used when repairing credit, like debt validation and debt settlement.\nAs much damage as a car repossession can do to your credit score, you can and will recover from it. Yes, you’re going to have to absorb a big hit for a while. But you’re best-served looking at this as an opportunity to take stock of the way you’re managing your credit and your overall financial life. END
 TITLE: Repair Your Credit After Repossession CONTENT:    |  |  |  | \n: . END
 TITLE: Protect Your Credit During a Divorce CONTENT: Protecting Your Credit During a Divorce\n---------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 31, 2017_\nGoing through a divorce is never fun and there is a long list of things that need to be sorted out during the process. Protecting your credit should be at the top of the list. Even if you and your spouse are on the best of terms, his\/her future credit activity can negatively affect yours if you do not take the time to properly separate your credit accounts before your divorce is final.\nPull Your Credit Reports\n------------------------\nYou may already review your credit reports every year, but you're not looking for erroneous or negative listings this time around.\nDuring a divorce, look over your credit reports to identify the jointly-held accounts for which both you and your spouse are responsible, as well as individual accounts for which you alone are responsible (unless you live in a community property state, in which case any debts accumulated during the marriage are considered joint accounts).\nClose Joint Credit Cards\n------------------------\nWhile it is normally never advisable to close a credit card, as it does affect your credit score, it is absolutely imperative that you do so during a divorce. If there is a balance on the credit card, do everything within your power to pay it off so you can close the account before the divorce. If paying off the balance is not possible, transfer the balance to two other credit cards — one in your name and one in theirs.\nOpen New Accounts In Your Name\n------------------------------\nWhen you close your joint credit cards, request that the credit card company issue a new one to you in your name only.\nRemove All Credit Card Authorizations\n-------------------------------------\nIf your spouse is an authorized user on one or more of your credit cards, have them removed. Otherwise, they will be able to continue charging to the account even though they are not legally responsible for the debt.\nMake sure your spouse does the same, removing you as an authorized user from any of their credit card accounts. This is not to prevent you from using the card, but rather to protect your credit report in the event that your spouse defaults on the debt, as the activity on an authorized credit card gets reported on the authorized user's credit report. That said, Experian says it only reports credit card activity on an authorized user's credit reports if the activity is positive.\nRefinance Joint Installment Agreements In One Person's Name\n-----------------------------------------------------------\nThis should include any shared mortgage, auto loans, or other installment debt. If refinancing isn't an option, divide responsibility for jointly-held accounts, in writing. For instance, you may opt to keep the house, thus taking over the mortgage. In turn, your spouse may opt to keep the car, thus taking over the auto loan.\nAsk Lenders to Send You Monthly Statements For Jointly-Held Accounts Your Spouse Has Agreed to Pay\n--------------------------------------------------------------------------------------------------\nThe last thing you want to do is check up on your spouse after a divorce, but considering the damage not doing so could do to your credit, it's worth the irritation.\nIf your spouse has a agreed to take on a mortgage, auto loan, or other debt that could not be refinanced in one person's name, request that the lender send you monthly statements, which you are absolutely entitled to as a joint holder of the account. This way you can be sure that monthly payments are being made on time, as agreed.\nShould you discover that your spouse is not following through on their end of the deal, contact your divorce attorney immediately.\nResist The Temptation to Charge Up a Bunch of New Debt\n------------------------------------------------------\nDuring and after a divorce, you may face some big expenses, from legal fees, to moving into a new place, to getting yourself a new car. But the last thing you want to do is turn this brand new start into a bunch of new debt.\nWhile taking on new debt may be unavoidable to some extent, do all you can to minimize the damage. Move into a smaller place, buy a cheaper car, and just generally cut down on every expense possible. You have every reason to expect your financial future to be a bright one, but in the short-term, you're best-served spending cautiously. END
 TITLE: Info on Protecting Your Credit During a Divorce CONTENT: ###### Written by: Kristy Welsh\nGoing through a divorce can be painful and it can affect your finances. On top of having to sort through all of your possessions, you will also have to deal with all of the joint credit accounts you and your future ex-spouse share. While in the first stages of marital bliss, you both probably signed for a new car, checking accounts, and a new house. Now, you will have to unwind all of these debts and determine who will be responsible for which ones.\nMaking sure you and your spouse handle the financial division as fair as possible, will lessen any credit surprises down the road. Here are some articles to help you through this difficult time and to steer you in the right direction when it comes to building credit on your own.\nMyths About Divorce Decrees — The finalization of your divorce is the issuance of a divorce decree by the court. But, don't think this absolves you from all debt obligations.\nHow to Protect Your Credit During a Divorce — Protecting you credit score and credit history during a divorce is vitally important. Here are some tips to keep your credit in good shape during and after a divorce.\nHow to Rebuild Your Credit After a Divorce — After the divorce is final, then it is time to start rebuilding and establishing new credit. We have some tips on how to build up your credit. END
 TITLE: Info on Protecting Your Credit During a Divorce CONTENT:    |  |  |  | \n: . END
 TITLE: Sample Credit Dispute Letter - Removal of Inaccurate Information CONTENT: ###### Written by: Kristy Welsh\n**Send this to the credit bureaus requesting the removal of inaccurate information.**\n-------------------------------------------------------------------------------------\nIf you reviewed your credit reports and you don’t agree with some of the information contained on your report, or even if any items are questionable, you can send a credit report dispute letter to each of the credit bureaus. The credit bureaus are obligated by law to investigate your dispute and they must either verify, correct, or delete the item from your record within 30 or 45 days. Always include any copies of proof you may have such as, cancelled checks showing timely payments, paid off accounts, loans, and anything that will show the information is indeed erroneous. \n**Note:** Always include a photocopy of your driver’s license, state-issued ID, or U.S. passport and a copy of your social security card, pay stub, W-2, or a recent utility bill. Only 2 forms of ID are required.\nDo not just simply copy this letter. You need to edit this letter and tailor it to your specific situation. If you need additional credit dispute letters, we have more sample letters to handle a variety of credit situations. You can also visit our bookstore where you can purchase eBooks on credit repair, debt settlement, and 95 sample letters all available for instant download. \n* * *\nDate\nName  \nAddress\nCredit Bureau  \nBureau Address\nTo Whom it May Concern,\nThis letter is a formal complaint that you are reporting inaccurate credit information.\nI am very distressed that you have included the below information in my credit profile due to its damaging effects on my good credit standing.  As you are no doubt aware, credit reporting laws ensure that bureaus report only accurate credit information. No doubt the inclusion of this inaccurate information is a mistake on either your or the reporting creditor's part. Because of the mistakes on my credit report, I have been wrongfully denied credit recently for a  (_insert credit type for which you were denied here)_, which was highly embarrassing and has negatively impacted my lifestyle.\n_(optional)_  With the proof I'm attaching to this letter, I'm sure you'll agree it needs to be removed as soon as possible.\nThe following information needs to be verified and deleted from my credit report as soon as possible:\nCREDITOR AGENCY -  Account #123-34567-ABC\nPlease delete the above information as quickly as possible.\nSincerely,\n_Your Signature_\n* * * END
 TITLE: Sample Credit Dispute Letter - Removal of Inaccurate Information CONTENT:    |  |  |  | \n: . END
 TITLE: Break Out of the Cycle of Bad Credit CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: March 21, 2017_\nThere are a lot of people in American who have bad credit and the cycle of bad credit is a vicious one. If you’re not mindful of what it takes to break it, and dedicated enough to repair your credit, all you can expect is more of the same. It was once thought that having a bad credit score was the result of bad decisions — but it is not that simple. There are many factors that go into your credit score so you can't just point your finger at one thing. The good news is we can help you break the cycle. Fact is — it’s using mostly good old common sense.\nPay Your Bills on Time, _Every Time_\n------------------------------------\nDo not waiver on this point…_ever_. In fact, pay your bills early if you can just to be sure they don’t get missed. Or set up automated payments for accounts that offer this option.\nYou will be tempted to veer off this course now and then. Don’t let it happen, not even a day late. Because once you allow yourself a day, it’s that much easier to allow yourself a week. Then, before you know it, you’re inching dangerously close to the dreaded 30-days-late mark where your credit could take a big hit.\n**Pay Off Credit Card Balance Every Month**\n-------------------------------------------\nNot the minimum payment, not twice the minimum payment, but _the entire balance_. This is not only good for your credit score today, it is also the key to long-term credit success. Paying off your balance prevents you from getting in over your head, which can lead to late payments, collections, and charge-offs.\nThe only exception to this rule is if you have an emergency situation that requires you to charge more than you can afford to pay by the end of the month (though this is where an emergency fund would have come in handy).\nKeep Credit Utilization Ratio Under 30 Percent\n----------------------------------------------\nLet’s say you have $1,000 of available credit on your credit card. The last thing you want to do is max out that card, even if you pay off the entire balance before the end of the month. Why? Because credit scoring models reward you most when you only use 30 percent or less of your available credit at any one time — in this case $300.\nDoes that $700 of unused credit seem too hard to resist? Remind yourself of this. Credit cards should be used as tools to build your credit score, not to buy things you don’t have the money to pay for now.\n**Stop Applying For New Credit Cards**\n--------------------------------------\nApplying for new credit can help your credit, but don't apply for a new credit card after you have maxed out your other ones. This is a sure sign you’re living off your credit cards, a no-win situation that can only end in financial disaster. Don’t think you can make ends meet without a new credit card? It’s time for a drastic overhaul of your income and\/or expenses.\nCancel cable once and for all. Find a side job. Move to a cheaper place if you have to. Do whatever it takes to start spending less than you actually earn. (And make a plan for paying off those maxed out credit cards.)\nDispute Incorrect and Negative Listings on Your Credit Reports\n--------------------------------------------------------------\nWhen is the last time you looked at your credit reports? More to the point, when’s the last time you disputed erroneous\/negative information on your credit reports? These could be the reason your credit score is declinging. \nIf it’s been a while (or never) then don’t waste another second. Request your free credit reports from all three credit bureaus at AnnualCreditReport.com. Then get to work disputing erroneous listings with the credit bureaus.\nBy just following these few simple rules, you will be able to break the cycle of bad credit and increase your credit score. Remember that fixing your credit does not happen overnight, so give yourself some time and just keep thinking about the light at the end of that tunnel. END
 TITLE: Shorter Credit Dispute Letter - Remove Inaccurate Information CONTENT: Short Credit Dispute Letter — Removal of Inaccurate Information\n---------------------------------------------------------------\n###### Written by: Kristy Welsh\nSend this short letter to the credit bureaus asking to remove inaccurate information from your credit reports.\n--------------------------------------------------------------------------------------------------------------\nIf after reviewing your credit reports you find information that is either incorrect or questionable, you can send a credit dispute letter to each of the credit bureaus. This letter is a shortened version of our original credit dispute letter. The credit bureaus are obligated by law to investigate your dispute and they must either verify, correct, or delete the item from your record within 30 or 45 days. \n**Note:** Always include a photocopy of your driver’s license, state-issued ID, or U.S. passport and a copy of your social security card, pay stub, W-2 or a recent utility bill. Only 2 forms of ID are required.\nPlease do not just copy this letter. You will need to tailor the wording of this letter to fit your individual situation. This sample letter is meant to give you ideas on how to structure your own credit disput letter.\nWe have more sample letters designed to help you to address a variety of credit repair situations. You can also visit our bookstore where you can purchase eBooks on credit repair, debt settlement, and 95 sample letters. All of our products are available for instant download. \n* * *\nDate\nName  \nAddress\nCredit Bureau  \nBureau Address\nTo Whom it May Concern,\nI've just reviewed my credit report and have noticed there are several inaccurate items on my report:\n**Chase VISA Acct: xxxxx-xxxxx-xxxx-xxx:**  \nThis account is listed as being 30 days late. I have never been late on this account.\n**Sears Acct: xxxxx-xxxxx-xxxx-xxx:**  \nThis account is listed as being 30 days late. I have never been late on this account.\n**Universal Acct: xxxxx-xxxxx-xxxx-xxx:**  \nThis account is listed as being 30 days late. I have never been late on this account.\nIn addition, there are a number of credit accounts which have been inactive for more than 7 years. As you know, the FCRA states that all credit older than 7 years should be removed from my report. The following accounts should be removed:\n**Diner's Club Acct: xxxxx-xxxxx-xxxx-xxx:**  \n**GE Consumer Card Acct: xxxxx-xxxxx-xxxx-xxx:**  \n**Macy's Acct: xxxxx-xxxxx-xxxx-xxx:**\nI have enclosed a copy of my driver's license and utility bill as proof of identity.\nSincerely,\n_Your Signature_\n* * * END
 TITLE: Keep Repaired Credit in Good Shape CONTENT: How to Keep Your Credit in Good Shape\n-------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 29, 2017_\nWhen you think about all the time you spent removing negative items from your credit report, the last thing you want to do is assume your job is done. Good credit requires on-going monitoring to ensure that you don't lower your credit score. Once you get to your target credit score, don't sit back on your laurels and think your job is done. Here are some tips to keep your good credit in shape and maintain that excellent credit score.\nMonitor Your Credit Report\n--------------------------\nWhen repairing your credit, nothing is more important than going through your credit reports with a fine-tooth comb, disputing any and all negative listings. However, even if you manage to have all negative listings removed, this does not mean your job is done.\nIt is essential that you continue to keep an eye on your credit reports so you can catch any other negative listings that could pop up. You should do this at least once a year, though every six months is ideal. You are entitled to one free annual credit report from all three major credit reporting agencies, so you need only purchase three reports, for a nominal fee, once a year.\nUse Available Credit Wisely\n---------------------------\nWhen potential lenders are assessing your creditworthiness, they want to see that you know how to manage existing debt. So the last thing you want to do is have open lines of credit you never use.\nAs a rule, try keeping your charged credit at 10 percent of the credit available to you. While this means keeping a balance on your credit cards and, in turn, paying some interest on the debt, it is well worth the benefit of proving you know how to keep and use credit in a healthy, responsible way.\nKeep Paid-Off Credit Cards\n--------------------------\nIt can be tempting to want to wish away the existence of the credit cards that got you into so much trouble. However, the more credit cards you have, the more your available credit, which reflects well on your overall creditworthiness.\nApply For New Lines of Credit In Moderation\n-------------------------------------------\nEvery time you apply for a new credit card, your credit takes a hit, so do so mindfully. This means carefully researching credit card offers and only applying for those that you are likely to be approved for and, more importantly, those that come with fees and interest rates you can live with.\nMake On-Time Payments On Your Current Loans\n-------------------------------------------\nThe prior recommendations are all for naught if you make late payments. Again, this does not necessitate the need to pay your balance in full. In fact, that's the opposite of what you want to do. However, you do want to maintain a low enough balance that makes it possible for you to keep your charged credit at 10 to 30 percent of your available credit each month.\nAdjust Your Spending Habits\n---------------------------\nIt may be that the best way for to preserve your credit repair efforts, at least for now, is to stop at step one. For example, if you have a history of charging up whatever credit is available to you, and you don't trust yourself with an open line of credit, by all means cancel it. The hit you take for canceling a credit card pales in comparison to the damage that could be done by a credit card with a balance that gets out of control.\nAdhering to these easy to follow rules, will keep your credit in good shape year after year. Spending the time each year to review your credit reports and disputing any negative items that may pop up, will pay off with a high credit score and access to better interest rates. END
 TITLE: Credit Dispute Letter - Follow Up on Original Dispute CONTENT: Sample Credit Dispute Letter — Follow up Letter to Credit Bureaus\n-----------------------------------------------------------------\n###### Written by: Kristy Welsh\nSend this credit dispute letter requesting follow up to your original dispute letter.\n-------------------------------------------------------------------------------------\nIf you don't agree with the information contained in your credit report, you can send a credit dispute letter to each of the credit bureaus. This sample letter is used to follow up with a credit bureau with respect to the original dispute letter you already sent to them. Use this letter if you _have not heard back_ from the bureau within the 30 or 45 days time limit. When you send this letter, include a copy of your original letter and any documentation showing they received your first letter, i.e., post office receipt showing date of delivery.\nPlease do not just simply copy and paste this letter. You need to tailor this letter to fit your particular circumstance. We have more sample credit repair letters to handle a variety of credit and debt situations. You can also visit our bookstore where you can purchase eBooks on credit repair, debt settlement, and 95 sample letters — all available for instant download.\n* * *\nDate\nName  \nAddress\nCredit Bureau  \nBureau Address\nRE: Dispute Letter of _date you sent in first or subsequent requests_\nTo Whom it May Concern,\nThis letter is formal notice that you have failed to respond to my dispute letter of (_date)_. I sent this letter registered mail and have enclosed a copy of the return receipt which you signed on _(date)_.\nAs you are well aware, federal law requires you to respond within 30 days. It has now been over that period since the receipt of my letter. As you are no doubt aware, failure to comply with federal regulations by credit reporting agencies are in serious violation of the Fair Credit Reporting Act and may be investigated by the FTC. Obviously, I am maintaining detailed records of all my correspondence with you.\nI am aware that you may have misplaced my letters or have failed to respond to my letter because of an oversight due to the high volume of the requests you receive daily. If this is the case, I'm sure you'll want to handle this matter as soon as possible. For this purpose, I have included a copy of my original request, the dated receipt of your reception of the original letter and a copy of the proof verifying the incorrectness of the credit item you have mistakenly placed on my records.\nThe following information therefore needs to be verified and deleted from the report as soon as possible:\nCREDITOR AGENCY - Account #123-34567-ABC\nPlease delete this erroneous item from my credit report as soon as possible.\nSincerely,\n_Your Signature_\n* * * END
 TITLE: Credit Dispute Letter - 30 Day Investigation Passed CONTENT: ###### Written by: Kristy Welsh\nUse this credit dispute letter when the investigation time period has passed. \n------------------------------------------------------------------------------\nPart of repairing your credit is disputing inaccurate information found on your credit reports. If you have written a credit dispute letter to a credit bureau disputing the accuracy of an account, they have 30 days to investigate the account. If they cannot verify the information within 30 days, they must either delete the information or advise you that it is still under investigation. Failure to do either results in them having to remove the information in its entirety.\nPlease do not just copy this sample letter. You will need to tailor this letter to fit your specific situation. This letter is a merely a suggestion as to what to say to a credit bureau.\nWe have more sample debt settlement letters available to address a variety of debt situations. You can also visit our bookstore where you can purchase eBooks on credit repair, debt settlement, and 95 sample letters that are all available for instant download.\n* * *\nDate\nYour Name  \nYour Address\nCredit Bureau Name  \nCredit Bureau Address\nTo Whom It May Concern,\nI sent a letter to you disputing 5 accounts as erroneous on (date) and mailed them certified, return receipt requested. I received notice in the mail that you received the dispute letter on (date). It is now (date) and I have not received a response from you. Per the Fair Credit Reporting Act, Section § 611 (a) (5), you have 30 days to investigate disputes. If you cannot verify the information within the 30 day time period, you must delete all of the disputed accounts from my report. You must now delete the disputed and unverified accounts. Failure to do so can result in a $1,000 fine per undeleted item.\nEnclosed find a copy of the receipt showing when you received my credit dispute and a copy of my original letter showing all the accounts I have disputed.\nThanks in advance to your timely response to this request.\nSincerely,\n_Your Signature_\n* * * END
 TITLE: Credit Dispute Letter - 30 Day Investigation Passed CONTENT:    |  |  |  | \n: . END
 TITLE: Credit Inquiry Removal Letter - Letter to Remove Inquiry CONTENT: Remove Credit Inquiries from Your Credit Report\n-----------------------------------------------\n###### Written by: Kristy Welsh\nUse this letter to ask for removal of credit inquiries.\n-------------------------------------------------------\nIf you have recently aquired copies of your credit reports, you may notice an \"Inquiries\" section toward the end of each of the reports. These credit inquiries will be broken into two types — soft inquiry and a hard inquiry. You will want to have any unauthorized hard inquiries removed from your credit reports as these may be affecting your credit score. The _Fair Credit Reporting Act_ allows only authorized inquiries to appear on your credit report. Inorder to remove a credit inquiry, you must challenge whether the inquiring creditor had proper authorization to pull your credit file. Remember, this letter is only an example and you MUST edit it to fit your particular situation.\nCheck out all of our sample credit repair letters to handle a variety of credit repair situations. Also, visit our bookstore where you can purchase eBooks on credit repair, debt settlement, and 95 sample letters — all available for instant download.\n* * *\nDate\nName  \nAddress\nCredit Bureau Name  \nCredit Bureau Address\nRe: Request to Remove Unauthorized Credit Inquiry\nDear Sir or Madam,\nI recently received a copy of my (insert name of bureau) credit report and I notice there is an unauthorized credit inquiry made by (insert name of creditor). I do not recall authorizing this credit inquiry and I understand you shouldn't be allowed to put an inquiry on my file unless I have authorized it. I am requesting you initiate an investigation into (insert name of creditor) inquiry to determine who requested this credit inquiry.\nIf you find I was not the one who authorized this inquiry, I ask that it be removed immediately from my credit file. Please be so kind as to forward me documentation that you have had the unauthorized inquiry removed.\nIf you find that I am in error, then please send me proof of this.\nThank you in advance,\n(signature)\n(include a copy of your credit report) END
 TITLE: Credit Inquiry Removal Letter - Letter to Remove Inquiry CONTENT:    |  |  |  | \n: . END
 TITLE: Tips to Control Credit Card Use on Vacation CONTENT: Ways to Keep Your Credit in Check While on Vacation\n---------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 23, 2017_\nThe beauty of going on vacation is the promise of a carefree experience void of everyday concerns. A sure fire way to taint your trip is to charge more than you can afford. Don't let this happen to you. Include in your vacation plans the following steps for keeping your credit in good shape.\nSave Up For Your Vacation\n-------------------------\nJust because you have the available credit to charge a trip to your credit card should in no way suggest it's a good idea. The only exception is if you have enough cash in the bank saved up to pay off your credit card balance before the end of the month. Otherwise, you're looking at interest charges. You could let it slide for a month or two, choosing to eat the interest, but be careful. It's a slippery-slope, in that a couple of months can easily stretch into six, even a year, costing you hundreds of dollars in interest fees that could have bought you a second vacation! The solution: Plan ahead of time, selecting a date for your vacation based on when you'll have saved enough money to pay for it outright.\nStick To Your Budget\n--------------------\nSaving cash for a vacation does little good if you end up charging much of it to your credit card. Sit down and do the math. Add up the cost of your airline tickets, car rental, hotel stay, food, entertainment, and \"fun money\" for souvenirs and such. Failing to budget is likely to mean charging more to your credit card that you bargained for.\nBudget For The Unexpected\n-------------------------\nIn the event that you need to return home early, make sure you incorporate into your budget enough to cover any added expense of changing your travel plans. While it's great to be able to charge something like this to your credit card, it's better if you have the cash in the bank to cover the cost by end of the month.\nResearch Your Credit Card Rewards Programs\n------------------------------------------\nMany credit cards come with perks that can come in handy on vacation. You may have airline miles racked up, or your card may cover the cost of a rental car, for example. So before you spend, research your credit cards rewards program thoroughly. And if you're in the market for a new credit card, allow this to be one of the deciding factors (a low interest rate among them).\nPre-Pay Monthly Bills Before You Leave For Vacation\n---------------------------------------------------\nOne way it's possible to wreck your credit on vacation has nothing to do with using your credit cards at all. Forgetting to make a monthly car payment or mortgage payment, for example, may mean a late payment or missed payment listing on your credit reports. And all it takes is one of these negative listings to hurt your credit score considerably, especially if you have a history of paying on time.\nTake Only One or Two Credit Cards With You On Vacation\n------------------------------------------------------\nWhen you're on the road, the fewer cards you have to keep track of the better. That way, if they're lost or stolen, it's a smaller hassle to deal with in terms of canceling the cards, and a smaller liability in the event you are a victim of identity theft. Just be sure to write down and leave with a friend or family member the account numbers and credit card company phone numbers of the cards you are taking with you. This way a quick call to them can help you immediately call the appropriate number to report the loss or theft and cancel the cards.\nNotify Your Credit Card Providers of Your Travel Plans\n------------------------------------------------------\nWhen credit card issuers see credit cards being used in unusual locations, they usually place a hold on the cards just in case such activity is a result of theft. For this reason, it's very important that you contact your credit card companies before you leave to let them know where you're going and when. Even if you're only taking your credit cards along \"just in case,\" it's in an emergency situation when you least need to discover your credit card has been frozen.\nApply For a Credit Card Without International Transaction Fees\n--------------------------------------------------------------\nMany credit cards come with transaction fees for purchases made overseas. These fees usually range anywhere from 2 to 3 percent of the purchase price. However, there are credit cards out there with no such fees. So if you're planning a trip internationally, it may be worth applying for one.\nCheck Credit Card Compatibility With Foreign Merchants\/ATM's\n------------------------------------------------------------\nIf your travel plans are taking you abroad, ask your credit card company about getting a card compatible with merchants and ATM's that only accept microchip technology. Fees like these add up quick, inflating the price you're really paying for your purchases.\nFollowing these easy steps will make your vacation less stressful before you leave and after you return. Who wants to return from an awesome vacation to face worries about your credit and how much money you overspent. Using these easy tips will make your vacation one to remember for all the right reasons. END
 TITLE: Debt Validation Letter to Send to Credit Bureau CONTENT: Validate Debt Letter — Send to Credit Bureaus\n---------------------------------------------\n###### Written by: Kristy Welsh\nDebt validation letter sent to credit bureaus if collection agency fails to validate debt.\n------------------------------------------------------------------------------------------\nAssuming you have contacted the collection agency using our debt validation methods, and they have failed to send you adequate proof of your legal obligation to pay a debt, this is the letter you need to write to the credit bureaus.\nThis letter is part of our information on debt validation. We have other sample letters to handle a variety of credit situations. Here is the list.\n* * *\nDate\nYour Name  \nYour Address\nCredit Bureau  \nBureau Address\nRE: Account XXXXX-XXXX-XXXXX\nTo Whom it May Concern,\nI am writing to dispute the account referenced above. I have disputed this account information as inaccurate with you, and you have come back to me and stated you were able to verify this debt. How is this possible? Under the laws of the FDCPA, I have contacted the collection agency myself and have been unable to get them to verify that this is indeed my debt.\nI enclose copies of my requests to the collection agency, asking them to validate my debts, and the receipts showing that I sent these letter certified signature request. This debt is not mine and I was given no evidence of my obligation to pay this debt to this collection agency.\nThe FCRA requires you to verify the validity of the item within 30 days. If the validity can not be verified, you are obligated by law to remove the item. There is a clear case of unverified debt here, and I urge you to remove this item before I am forced to take legal action.\nIn the event that you can not verify the item pursuant to the FCRA, and you continue to list the disputed item on my credit report I will find it necessary to sue you for actual damages and declaratory relief under the FCRA. According to this regulation, I may sue you in any qualified state or federal court, including small claims court in my area.\nWhile I prefer not to litigate, I will use the courts as needed to enforce my rights under the FCRA.\nI look forward to an uneventful resolution of this matter.\nSincerely,\n_Your Signature_  \nenclosures\n* * * END
 TITLE: Follow Our Step by Step Credit Repair Schedule CONTENT: How Long Does Credit Repair Take? Here's a Time Schedule\n--------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 21, 2017_\nBuying a house or car in the near future means it is time to review your credit reports to see if there are areas that need to be improved upon. There is nothing worse than applying for a loan only to find out your credit score is under 600 and you have been denied for the loan.\nFixing your credit does not have to seem like an overwhelming and daunting task. There is no better time than the present to get started on credit repair. But, if you are feeling overwhelmed by it all and tempted to hire a credit repair company, you're not alone. Many people get overwhelmed by the thought of repairing their credit. \"There is so much to learn\" or \"I have a full time job\" are the common excuses we hear everyday. Honestly, repairing your credit takes about **_2-3 hours a month_**. Not only will you be able to find these few hours a month to devote to credit repair, you could save yourself hundred of dollars in credit repair fees by doing it yourself.\nDo-It-Yourself Credit Repair Schedule\n-------------------------------------\nWe've come up with a sample schedule to illustrate the amount of time you will spend repairing your credit. Obviously these time are estimated and some months may require more time than others depending on the shape of your credit. The point here is to show you how do-able credit repair is and the fact it really is only mere hours a month.\n**Month 1**\n1.  Reviewing your credit reports. (1 hour)\n2.  Reading our articles on the credit repair methods. (30 minutes)\n3.  Writing initial dispute letters to credit bureaus. (1 to 1-1\/2 hours)\n4.  Saving copies of all the letters you are mailing. (15 minutes)\n5.  Mailing dispute letters. (15 minutes)\n**Total:**  **3-1\/2 hours maximum**\n**Month 2**\n1.  Collecting letters from credit bureaus and filing them as them come in. (15 minutes)\n2.  Gathering your responses at the end of the month and reading them. (30 minutes)\n3.  Logging results in a journal. (15 minutes)\n4.  Reviewing our credit repair methods. (15 to 30 minutes)\n5.  Writing new dispute letters to credit bureaus. (30 minutes)\n6.  Writing debt validation letters to collection agencies.  (1 hour - depending how many you have)\n7.  Saving copies of all the letters you are mailing. (15 minutes)\n8.  Mailing letters. (15 minutes)\n**Total:** **3-1\/2 hour maximum**\n**Month 3**  Repeat or follow up on activities performed in Month 2.\n1.  Collecting letters from credit bureaus and filing them as them come in. (15 minutes)\n2.  Gathering your responses at the end of the month, reading them, logging results. (15 minutes)\n3.  Writing out new dispute letters to credit bureaus. (30 minutes)\n4.  Writing follow-up debt validation letters to collection agencies. (30 minutes(\n5.  Saving copies of all the letters you are mailing. (15 minutes)\n6.  Mailing letters. (15 minutes)\n7.  Writing investigation requests to original creditors. (30 minutes)\n**Total:** **2-1\/2 hours maximum**\n**Month 4**  Repeat or follow up on activities performed in Month 3. You should be getting quicker at doing all these things, it should be taking no longer than 2 hours a month at this point.\n1.  Collecting letters from credit bureaus and filing them as them come in. (15 minutes)\n2.  Gathering your responses at the end of the month, reading them, logging results. (15 minutes)\n3.  Writing out new dispute letters to credit bureaus. (30 minutes)\n4.  Writing follow-up debt validation letters to collection agencies. (30 minutes)\n5.  Saving copies of all the letters you are mailing. (15 minutes)\n6.  Mailing letters. (15 minutes)\n7.  Calling original creditors about investigation results. (15 minutes)\n**Total: 2-1\/2 hours maximum**\n**Months 5, 6 and beyond:** Repeat activities in Month 4. If you get stuck, you can ask for advice on our discussion boards.\nFixing Your Credit is Easy\n--------------------------\nThink about it, if you gave up watching three hours of TV every month, you can have vastly improved credit. According to a recent study by the \"New York Times,\" the average American watches 34 hours of TV in a WEEK. You do have the time!\nOur Credit Repair Bookstore has numerous eBooks available for instant download that can help you fix your credit and settle your debts.\nWe hope we've convinced you that you can do this on your own, but if we haven't, let us recommend Lexington Law. This company follows the same credit repair methods we promote on this site. END
 TITLE: Credit Repair Questions When Fixing Your Credit CONTENT: Questions to Answer While Fixing Your Credit\n--------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 24, 2017_\nAre you willing to ask yourself the tough questions when trying to solve your credit repair problems? While it may feel intimidating at first, the deeper you delve into the answers, the more empowered you'll feel to take action. Below are some very tough questions you need to ask yourself before you start down the road of repairing your credit. Now, be truthful with yourself because that is the only way you will know for sure if you are ready to take on this credit repair challenge. If you are not ready, there is no shame in seeking out help from a reputable credit repair company such as Lexington Law. Either way, fixing your credit is something you should do if you plan to buy a house or a car in the near future.\nAre You Checking Your Credit Reports?\n-------------------------------------\nIf you want to improve your credit, monitoring your credit reports is imperative. This is the only way of knowing what negative listings are dragging down your score. Then, and only then, can you take steps aimed either having these listings removed, or adding positive credit to offset the negative. For the free credit reports your are entitled to once a year — from all three major credit reporting bureaus — go to AnnualCreditReport.com. \nAre You Disputing Errors on Your Credit Reports?\n------------------------------------------------\nOnce you receive your credit reports, go through them with a fine-toothed comb. From a misspelled name to a credit account you don't recognize, immediately send a letter of dispute to the credit reporting agency. Do so via regular certified mail, so there is no question of receipt. This will also give you a date from which to count the 30 to 45 days the agency has to respond.\nAre You Requesting Validation on Old Debt?\n------------------------------------------\nIf a review of your credit report shows that one or more of your debts has been sold from the original creditor, send to the appropriate credit bureau a letter requesting debt validation. The more times your credit account has been sold, the less likely they have the supporting documents to prove the debt belongs to you. If they cannot prove it, they must remove it from your credit file.\nAre You Aware of the Statute of Limitations on Debt in Your State?\n------------------------------------------------------------------\nOnce debt reaches its statute of limitations, you are no longer legally responsible for it. While it should automatically fall off of your credit reports once it reaches the statute of limitations, this is not always the case. Research the statutes in your state and make note of when each type of debt you have should disappear from your credit reports. If it doesn't, dispute it with the appropriate credit bureau.\nAre You Negotiating\/Settling Debt With Your Creditors?\n------------------------------------------------------\nIf you are struggling to pay a debt, either to an original creditor or to a collector that was able to provide debt validation, try to negotiate and settle your debt for an amount smaller than what you owe. At the very least, you may be able to set up a manageable payment plan. And if you do reach an agreement, ask if it can include the removal of the negative listing from your credit report. Creditors are not obligated to do this, but it is within their means.\nDo You Know How Much Debt You Owe?\n----------------------------------\nMany people avoid keeping track of their debt for fear of a number that may seem insurmountable. But unless you do the math, you're either underestimating or overestimating what you owe, and both come with unwanted consequences. If you underestimate what you owe, you're more likely to take on new debt that only makes the problem worse. If you overestimate what you owe, you're likely to ignore it completely, certain it's too great a mountain to scale. Only by knowing precisely what you owe from month to month can you make a practical, effective plan for dealing with it.\nDo You Have a Plan For Getting Out of Debt?\n-------------------------------------------\nIf you haven't already, make a list of all debts owed (that you can't have removed through debt validation) and decide which debts you are going to eliminate first. Conventional wisdom says to pay off your highest-interest loans first. However, it can be invaluably motivating to first pay off the smallest of your balances, so that you can see an immediate dent in your mountain of debt.\nDo You Know What You Are Paying in Interest Fees Every Month?\n-------------------------------------------------------------\nThis is what your credit is costing you. Doing the math is a great motivator for creating and cementing a plan of action.\nDo You Know What Percentage of Your Income is Going to Your Debt?\n-----------------------------------------------------------------\nLike monthly interest fees on credit owed, knowing what percentage of your income goes toward paying them is a great motivator for getting out of it. It's also a number lenders look at when considering credit-worthiness. If you're paying more than 36 percent of your income on debt, it doesn't look good.\nDo You Know How Much Credit is Available to You?\n------------------------------------------------\nKnowing your available credit is the only way of making sure you don't exceed the recommended credit utilization ratio of 30 percent. For instance, if you have $1,000 of available credit, you don't want your balance to exceed $300.\nAre You Using Your Available Credit?\n------------------------------------\nWhile it's imperative that you not use too much of your available credit, it's equally important not to use too little. You prove your credit-worthiness by showing you know how to use it. That means, for example, charging something to your credit cards every month. The key is making sure it's something you would be paying for anyway -- like gas, groceries, or the phone bill -- instead of using credit as an excuse to buy something non-essential that you can't afford to pay back by the end of the month.\nAre You Making Payments Before the Due Date?\n--------------------------------------------\nIf you plan accordingly, you can use your credit cards without carrying a balance (i.e., paying interest fees).\nAre You Paying Off Your Balances?\n---------------------------------\nIdeally, you want to pay off your credit card balances every month. This means only charging as much to the cards as you know you will have cash on hand to cover before your due date. If circumstances prevent you from doing so, at the very least make more than your minimum payment every month so that you can be making some sort of dent in the balance.\nDo You Have a Good Mix of Credit Accounts?\n------------------------------------------\nThe more varied your lines of credit, the better your credit score. In fact, 10 percent of your score depends on it. For instance, a home loan, auto loan, and credit card loans are a good mix of things. That said, if you're already struggling to make ends meet with your current debt load, pay that off before applying for any new credit accounts.\nDo You Know Your Credit Score?\n------------------------------\nUnlike credit reports, you are not entitled to a free credit score. However, it's well worth the cost of paying for your credit score at least once a year. This way you can get a feel for how your credit repair efforts are affecting your score, and you can make informed decisions about whether or not to apply for new credit depending on whether your score is excellent, good, fair, or poor. END
 TITLE: Sample Letter Notification of Lawsuit to a Credit Bureau CONTENT: ###### Written by: Kristy Welsh\nUse this letter to notify credit bureau of your intent to sue. \n---------------------------------------------------------------\nThe following is a sample letter informing a credit reporting agency that you have filed suit against them. Make sure to edit this one carefully to include all of your correct information. Some of the language in this letter was from an identity theft case so you will have to tailor the verbiage to fit your situation. You will also want to provide them with a copy of the filed lawsuit.\nThis letter is part of our sample credit repair and debt settlement letters we have created to help you handle a variety of credit situations. You can also visit our bookstore where you can purchase eBooks on credit repair, debt settlement and 95 sample letters - all available for instant download.\n* * *\nDate\nYour Name  \nYour Address\nCredit Bureau  \nBureau Address\nRE: Your Social Security Number\nDear Credit Bureau,\nEnclosed is a copy of the lawsuit that I filed against you in (your county) court on (date of filed). Currently, the Pretrial Conference is scheduled for (insert date and time and location). The case number is (insert case #).\nThe lawsuit was filed due to the utter lack of response from your company. When someone is the victim of identity theft, it is simply a nightmare trying to get false information removed from a credit file. I have contacted all of the false creditors listed on my credit file. I have challenged all of the false listings on my credit file. Nothing ever happens to fix the situation.\nOver 90 days ago I wrote each the creditors in question and demanded proof that I am their customer. I asked for proof of the alleged debt, including specifically the alleged contract or other instrument bearing my signature. So far none of them has been able to provide such proof to me. I have sent follow-up letters to each of them and there is still no proof. I have attempted phone contact, but I simply get transferred around and nothing ever gets accomplished.\nI have fully investigated my rights in this matter. Under the doctrine of estoppel by silence, Engelhardt v Gravens (Mo) 281 SW 715, 719, I may presume that no proof of the alleged debt, nor therefore any such debt, in fact exists. I have copies of the certified letters and dates prepared to bring to court on April 10th. Also, under the Fair Credit Reporting Act, these disputed items may not appear on my credit report if they cannot be supported by any evidence.\nUnder the Fair Credit Reporting Act, if they cannot verify the debt within 30 days, then it must be removed. Your letters to me claim to have \"verified\" the debt, but this is in fact not true under law. Simply contacting the alleged creditor and asking them to match up numbers in their database is no sufficient verification for identity theft. Of course the information matches up. Someone clearly used my information without my authorization.\nNow I am suing Equifax for being such a pain in the posterior to me. I have provided more than sufficient evidence to get these false accounts removed.\nYou may contact me before (insert date) via letter at my address listed at the top of this letter. This matter can be settled simply by your agreement to remove the false information from my credit file.\nI require a response, on point, in writing, hand signed, and in a timely manner. If I get another pointless letter from you saying that it has already been \"verified\" then there will be no more opportunity for negotiation. This will proceed in court until I have successfully proven to a judge that this false information must be removed from my credit file. I will also be aggressively pursuing the full judgment that I can get against Equifax for violation of the Fair Credit Reporting Act and Defamation.\nI have already won a similar lawsuit against TransUnion. Enclosed is a copy of that settlement. I will agree to a similar settlement with Equifax, if you contact me before (insert date). If you accept the same terms as TransUnion did, then I will dismiss my lawsuit against Equifax and you will not need to appear in (my county and state).\nThe items to be removed from my credit report are listed as follows:\n(list all accounts and account numbers)\nI look forward to your response.\nSincerely,\n_Your Signature_\nYour Name  \nSSN# 123-45-6789  \n_Attachment included_\n* * * END
 TITLE: Sample Letter Requesting Original Creditor Investigate Listing CONTENT: Sample Letter to Investigate Inaccurate Information\n---------------------------------------------------\n###### Written by: Kristy Welsh\nLetter to request original creditor investigate inaccurate information.\n-----------------------------------------------------------------------\n**Please follow the instructions on using this letter very carefully or you can do more damage than good.**\nThis letter is part of our credit repair kit. We have other sample letters to handle a variety of credit situations. Here is the complete list of sample letters.\n* * *\nDate\nYour Name  \nYour Address  \nCity, State Zip\nCredit Card Company  \nCredit Card Company Address  \nCity, State Zip\nRe: Acct #XXX-XXX-XXXXXXX\nDear Credit Card Company,\nI recently pulled my credit report from Experian and TransUnion and to my amazement, saw that you recently have decided to report me 30 days late on this account in (list the dates). I immediately disputed this information with Experian and TransUnion and the results of the investigation came back \"verified\". Not only was I never late on this account, but according to the Fair Credit Reporting Act (FCRA), as the information furnisher, you are required to notify me of the insertion of negative listings.\nSince I have disputed the late payments with the credit bureaus, and you obviously \"verified\" them, I am very curious as to what kinds of \"records\" you may have for this alleged account. Under the FCRA, you are required to conduct an investigation on this account if I request it. I therefore am submitting my written request to you to conduct an investigation. Per the FCRA, you have 30 days to conduct this investigation and respond to my request. If you do not respond within this time period, per the FCRA, you must remove this negative information.\nSincerely,  \n_Your Signature_\n* * * END
 TITLE: Sample Letter Requesting Original Creditor Investigate Listing CONTENT:    |  |  |  | \n: . END
 TITLE: Close Credit Card Account Without Lowering Credit Score CONTENT: Close a Credit Card Account Without Hurting Your Credit\n-------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 23, 2017_\nContrary to popular belief, it is possible to close a credit card without it having a negative impact on your credit score. This is especially good news if you are determined to clean up your credit but have a tendency to max out your credit cards. When you eliminate lines of credit altogether, then racking up new debt is no longer an option. This gives you a fool-proof safety net if and when temptation strikes to spend beyond your means.\nCan Closing a Credit Card Hurt My Credit?\n-----------------------------------------\nOne of the most important contributors to your credit score is your credit utilization ratio, or debt-to-credit ratio. The lower your ratio the better, with most experts agreeing it should not exceed 30 percent. So if you are considering closing a paid-off credit card, calculate how your ratio may be affected.\nHow to Calculate Your Credit Utilization Ratio\n----------------------------------------------\nWe recently added a great article on how to calculate your credit utilization ratio. But here it is in a nutshell - add up how much you have in available credit then add up how much of that credit you are carrying a balance on. Divide your total balance by your total available credit to determine your percentage. For instance, if you have $5,000 in available credit, and are carrying a balance of $1,000, then your debt-to-credit ratio is 20 percent. So, if you were to cancel a credit card with an available balance of $2,500, that leaves you just $2,500 in available credit - your credit utilization ratio increases to 40 percent.\nShould You Zero Out the Account Before Closing?\n-----------------------------------------------\nIf you have the means to pay off all of your credit card balances, you will certainly be better-served, in more ways than one. Not only does it prevent you from racking up interest on unpaid balances, but it ensures that you have the ideal debt-to-credit ratio of zero percent. This is the best way of ensuring that your credit utilization ratio will not go up after closing a credit card. If paying off all your balances is not an option, but you are determined to close a credit card anyway, calculate what your debt-to-credit ratio will be after the fact. If the increase is significant, reconsider. If the increase puts you over 30 percent, don't do it.\nSteps to Closing a Credit Card Account\n--------------------------------------\n1.  Note your credit score so as to have a point of comparison once the account has been closed.\n2.  Pay off the credit card debt.\n3.  If possible, bring all other available lines of credit to zero (so as to ensure your credit utilization rate does not go up, which negatively affects your score).\n4.  Call the credit card company to confirm that they show a zero balance on the account you want to close. Once confirmed, request via this phone call that the account be closed. Ask that you be mailed written confirmation of the account's closing.\n5.  In addition to your verbal request over the phone for confirmation of the account's closing, follow up with a letter requesting the same.\n6.  Once you have received written confirmation that the account has been closed, file it away in a safe place for future reference, if necessary.\n7.  Wait a few weeks then check your credit report and credit score. Make sure your credit report reflects a zero balance on the account, paid-in-full, and that it has, in fact, been closed. Also note how your credit score differs now (hopefully not at all) from how it stood before you closed the account.\nClosing a Credit Card May Shorten Credit History\n------------------------------------------------\nAccording to FICO, your credit score should not suffer from a shortened credit history simply because you close one of your cards. END
 TITLE: Close Credit Card Account Without Lowering Credit Score CONTENT:    |  |  |  | \n: . END
 TITLE: Free Credit Repair Consultation - Lexington Law CONTENT: Recommended Credit Repair Company — Lexington Law\n-------------------------------------------------\n###### Written by: Kristy Welsh\nWe know how challenging life can be with bad credit and we also realize you may not have the time to fix your credit on your own. That is why we highly recommend **Lexington Law** to handle all your credit repair needs.\n*   Cost: As low as $89.95 initial set-up — service levels start at $89.95\/month\n*   $50 Discount for couples, family members, and active military\n*   Over 26 years of experience\n*   BBB Rating: _**A-**_\n*   **FREE** credit report summary\n*   **FICO® Score**\n*   **NO CONTRACT** — you can cancel at anytime\nUse the Best Credit Repair Company to Fix Your Credit\n-----------------------------------------------------\nAt Credit Info Center, we understand how important it is to find a trustworthy and reputable credit repair company. We have had a relationship with Lexington Law since 2010 and we have visited their home office. They have over 22 lawyers and over 400 paralegals on staff to handle your credit repair needs. No other credit repair company offers the same combination of expertise, service, and affordability.\nCall Lexington Law today and a paralegal will provide you with a **FREE Credit Repair Summary Report and FICO® Score** and review what areas of your credit are lowering your credit score. Sign up for their incredible credit repair service and watch your credit score rise! \n**Fill out the form to the right and a paralegal will call you today!** END
 TITLE: Free Credit Repair Consultation - Lexington Law CONTENT:    |  |  |  | \n: . END
 TITLE: Sample Goodwill Letter - Send to Original Creditors CONTENT: ###### Written by: Kristy Welsh\nThis goodwill letter asks a creditor to remove a late payment.\n--------------------------------------------------------------\nAfter you reviewed your credit reports, you noticed there was a late payment on one of your accounts. Maybe you forgot, maybe your payment did not get there in time - something went wrong and this has caused a blemish on your payment history. Sending a goodwill letter to this creditor, explaining what happened, may often times persuade your creditor to remove the late payment notification. If you are courteous, apologetic, and explain what happened, your creditor may feel inclined to make their customer happy. The letter below is purely an example of what to say when you write your letter to the original creditor. Make sure to tailor this letter to fit your individual circumstance.\nThis letter is just one our free sample credit repair letters you can use to help handle a variety of credit situations. You can also visit our bookstore where you can purchase eBooks on credit repair, debt settlement and 95 sample letters - all available for instant download.\n* * *\nDate\nName  \nAddress\nCreditor  \nAddress\nRe: Acct #XXXX-XXXX-XXXX-XXXX\nDear Madam\/Sir,\nI am writing to you today regarding my account #XXXX-XXXX-XXXX-XXXX. The purpose of my correspondence is to see if you would be willing to make a \"goodwill\" adjustment on the reporting of this account to the three credit agencies.\nDuring the time period this account was established I was very happy with the service. I was however not the ideal customer and made mistakes with my handling of the account. I should have kept better records regarding the account and I take full responsibility. I became aware of the unpaid balance when I got a copy of my credit report in (_insert date_).\nI know that payment was my responsibility and I am not attempting to justify this breach of my user agreement. I was however hoping you might review the circumstances under which this non-payment occurred and consider removing the negative trade line associated with this account from my three credit reports.\nAs soon as I became aware of the balance owed, I contacted (_insert name here_) and paid the balance in full. I provide this not to justify why the account was unpaid, but rather to show that the issue with (_insert name here_) is not a good indicator of my actual credit worthiness. I hope that (_insert name here_) is willing to work with me on erasing this mark from my credit reports.\nI would like to stress the fact the information currently being reported is accurate. I am simply asking (_insert name here_) for a courtesy gesture of goodwill in having the credit bureaus remove this account from my report. I do recognize that this request is unique and that it may not be your normal policy. Please consider that the Fair Credit Reporting Act does not demand that all accounts be reported, only that any account that is reported be reported accurately. Therefore, a company does have legal discretion and permission to remove any account it chooses from the credit report. I'm hoping you will do that in my case for this account.\nYour kind consideration in this matter is greatly appreciated.\nRegards,\n_Your Signature_\n* * * END
 TITLE: Debt Validation Letter - Request to Validate a Debt CONTENT: Debt Validation Letter — Request Collection Agency to Validate Debt\n-------------------------------------------------------------------\n###### Written by: Kristy Welsh\nThis debt validation letter requests a collection agency to validate debt.\n--------------------------------------------------------------------------\nYou can also try this letter. Confused about how to use this form - read our article on the debt validation technique. Feeling overwhelmed by the debt validation process? Call to get a free credit summary and talk to a credit repair specialist today!\nUse this letter and the following form to make the agency verify that the debt is actually yours and owed by you. Keep a copy for your files and send the letter registered mail. We have more sample credit repair letters for you to use.\n* * *\nDate\nYour Name  \nYour Address\nDebt Collector  \nAddress\nRe: Collection Account #\nTo Whom It May Concern,\nI am sending this letter to you in response to a collection notice I received from you on (_date of letter_). Be advised, this is not a refusal to pay, but validation is requested. I respectfully request that your office provide me with competent evidence that I have any legal obligation to pay you.\nPlease provide me with the following:\n*   Provide a statement which matches the balance being claimed\n*   Provide a list of charges that total the amount claim in your original letter\n*   Identify the original creditor\nIf your offices have reported inaccurate information to any of the three major Credit Bureau's (Equifax, Experian or TransUnion), said action might constitute fraud. Due to this fact, if any negative mark is found on any of my credit reports by your company or the company that you represent I will not hesitate in bringing legal action against you.\nI would also like to request, in writing, that no telephone contact be made by your offices to my home or to my place of employment. If your offices attempt telephone communication with me, including but not limited to computer generated calls or correspondence sent to any third parties, it will be considered harassment and I will have no choice but to file suit. All future communications with me MUST be done in writing and sent to the address noted in this letter.\nRegards,\n_Your Signature_\n* * * END
 TITLE: Debt Validation Letter - Request to Validate a Debt CONTENT:    |  |  |  | \n: . END
 TITLE: Sample Letter Requesting Reduction of Debt CONTENT: Letter Requesting Reduction of Debt — Settle Debt for Less Than Owed\n--------------------------------------------------------------------\n###### Written by: Kristy Welsh\n**Request the reduction of debt owed. Once signed, it is a binding contract for the settlement amount.**\n--------------------------------------------------------------------------------------------------------\nDebt settlement is the process by which you are trying to come to an agreement with a collection agency regarding the amount of debt you owe. You want to negotiate a settlement so that you end up paying less than you owe. You can use this sample letter to send it to a collection agency confirming an offer to settle a debt and the amount the debt was settled for. It is very important this type of settlement is in writing and signed by all parties involved.\nWe have more sample debt settlement letters to handle a variety of situations. You can also visit our bookstore where you can purchase eBooks on credit repair, debt settlement and 95 sample letters - all available for instant download.\n* * *\n**AGREEMENT TO COMPROMISE DEBT**\n(_Insert Collection Agency Name_) referred to hereafter as COLLECTION AGENCY and (_Insert Your Name_) referred to hereafter as CONSUMER, agree to resolve the matter of the alleged debt, originally held by the \\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_ Company, hereafter referred to hereafter as the CLIENT. CONSUMER hereby agrees to settle this alleged debt claimed by COLLECTION AGENCY on the following terms and conditions:\nThe COLLECTION AGENCY certifies that it is legally authorized to act in behalf of its CLIENT and that any agreement that the COLLECTION AGENCY makes on behalf of CLIENT is legally binding on the CLIENT.\nThe COLLECTION AGENCY and the CONSUMER agree that alleged debt is $\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_. While the CONSUMER feels that validity of the debt has not been proved by the COLLECTION AGENCY, the parties agree that the COLLECTION AGENCY shall accept the sum of $\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_ as full payment on the debt. The acceptance of the payment will serve as a complete discharge of all monies due, and the COLLECTION AGENCY agrees to consider the debt paid in full and agrees to not take further action to collect on the alleged debt. The payment shall be made in the form of a cashier's check or money order.\nUpon payment of the $\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_, the COLLECTION AGENCY agrees to remove any listing or information that the COLLECTION AGENCY may have placed on the CONSUMER'S credit report. The COLLECTION AGENCY agrees to never at any time in the future place any information on the CONSUMER'S credit report.\nThe CONSUMER feels that the negative information on CONSUMER's credit report is damaging and while the exact estimation of the damage is not currently known, the CONSUMER estimates it to be $10,000 (ten thousand dollars). Should the COLLECTION AGENCY fail to remove the listing or reinsert it at a later date, the COLLECTION AGENCY agrees to award liquidated damages of $10,000 to CONSUMER.\nThis compromise is expressly conditioned upon the payment being received by (_insert date_). If the CONSUMER fails to pay the compromised amount by (_insert date_), this contract will be immediately terminated.\nThe person signing this agreement, \\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_, hereby declares that he\/she is authorized to act as an agent of the COLLECTION AGENCY.\nThis Agreement shall be binding upon and inure to the benefit of the parties, their successors, and assignees.\nDated: \\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\nSignature: \\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\nLegal Representative of (_Insert Collection Agency Name_)\nSignature: \\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\n_Print Your Name_\n* * * END
 TITLE: Learn What You Dispute on Your Credit Reports CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: March 31, 2017  \n_\nA big part of credit repair is making sure you do not have any incorrect or erroneous information on your credit reports. If you see something on one or more of your credit reports that doesn’t look right, you have the right to ask for it to be corrected or removed, whichever is appropriate. The process for making this happen is called a credit dispute and it is something you can do on your own or you can have a credit repair service do it for you. Either way, here is how the credit dispute process works.\n**Types of Information You Can Dispute**\n----------------------------------------\nPretty much anything on your credit reports is eligible for dispute. If any of the following looks wrong to you, a credit dispute is in order:\n*   Spelling of your name\n*   Social security number\n*   Date of birth\n*   Address\n*   Employer\n*   Credit accounts\n*   Credit inquiries\n*   Balances\n*   Late payments\n*   Charge-offs\n*   Collection accounts\n*   Bankruptcies\n*   Foreclosures\n*   Judgements\n*   Tax liens\nIn some cases, a resolution may mean a simple correction – to an address or a credit card balance, for example. In others, a resolution may mean the deletion of the listing entirely – like a collection that should have fallen off your credit reports by now, or a credit account that doesn’t belong to you at all.\n**How to File Credit Disputes**\n-------------------------------\nStart with the credit reporting bureaus – Experian, TransUnion, and Equifax. Of course, you may not have to contact all three. What’s on one report may not be on another, as data furnishers get to choose which agency they report information too.\nOnce you know which credit bureau to file the dispute with, send them a letter like this one. Just keep in mind that this is a template, meaning you will need to edit it as appropriate to reflect the unique nature of your situation. (The same is true of all other letters linked to below.)\nIn addition to the letter, include copies of any supporting documentation. You may also want to include a copy of the credit report with the items in question circled or otherwise highlighted.\n**What If the Credit Dispute Doesn’t Work?**\n--------------------------------------------\nIf you don’t hear back from the credit bureau, follow up with a letter like this one.\nIf you hear back, but it’s not corrected, try going directly through the data furnisher (e.g., creditor, collection agency) that reported the information you believe to be incorrect.\nIf neither the credit bureau nor the data furnisher corrects what you believe to inaccurate, you can submit a complaint to the Consumer Financial Protection Bureau (CFPB).\n**Why It Matters So Much**\n--------------------------\nIf it’s personally-identifying information that is inaccurate, you might consider ignoring it, as these things do not directly impact your credit scores. After all, we see our names misspelled on things all the time. But when it comes to your credit reports, a wrong name or address could be a sign that you have been a victim of identity theft, which is something you cannot ignore.\nThen there is the impact of credit information on your credit scores, which can be used to determine:\n*   Your eligibility for a loan\n*   Your interest rate on that loan\n*   Your auto insurance premium\n*   Your eligibility to rent a house or apartment\n*   Even your eligibility for a job\nBottom line, _any_ inaccuracy on a credit report is a big deal. While there are no guarantees that the dispute will be resolved as you hope, you can (and should) exercise your right – by law – to the credit dispute process.\nNot sure _what_’s on your reports? Request your free copies at AnnualCreditReport.com. END
 TITLE: Remove Inaccurate Information From Credit Report CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: March 30, 2017_\nThe Federal Trade Commission (FTC) released a report in February of 2015 revealing some staggering statistics. They found that one in five Americans has an error on their credit report. This came on the heels of a landmark settlement paid out by Equifax for lack of addressing errors reported by a consumer. The severity of the errors found ranged from misspelled names to reporting a person was deceased. Most inaccuracies fall into the category of \"late payments,\" which you will find described as 30, 60, or 90 days past due.\nIf you are in the process of buying a house or a car, the lender is going to pull your credit to see how credit worthy you are and what kind of loan they are going to offer you. But lo and behold, your credit score is not as high as you thought and there are some items on your credit report which are not accurate. How in the world did this information get on your credit report in the first place and what can you do about getting it off as quick as possible?\nCredit Reporting Agency Made a Mistake\n--------------------------------------\nInaccurate credit information can get on your report in a number of ways — one of which is from the credit bureaus. A service bureau or credit bureau can make a mistake which is caused by their database and query system. One type of common error is the merging of credit reports due to two people having similar social security numbers. The bureaus have been known to merge files when consumers' names are similar and they share seven of nine digits in their social security numbers. (of course the bureaus deny this ever happens) And, the social security administration can be partly to blame for \"double issuing\" social security numbers and for accidentally listing living citizens as deceased.\nAn independent analysis of 30,000 consumer complaints filed with the FTC found the majority of complaints were about unresolved errors on credit files held by one or more of the big three credit reporting agencies. An error rate of a staggering 30 percent, where in most cases these easy fixes dragged on for months and months.\nFurnisher Provides Outdated or Wrong Information\n------------------------------------------------\nThis is the kind of information that is just outright inaccurate and plain old boo-boos. This information is supplied to the credit bureaus by the various data gathering agencies and the bureaus just apply this information to your reports. This type of information could be a wrong current address, misspelling of your name or maybe using your maiden name. It might also include incomplete or missing employment information or application notices that you did not fill out.\nFurnisher errors are probably the easiest to fix. Just send a letter to all three bureaus pointing out the mis-information and then providing them with the correct information. Under the Fair Credit Reporting Act, they have 30 days to investigate your claim and determine if an error has been made and then to fix that error. A great letter to use in this instance is our Request the Removal of Inaccurate Information letter.\nYour Identity Was Stolen\n------------------------\nLastly, another way inaccurate information could have landed on your credit report is if your identity has been stolen. Identity theft happens more often than you might think. Every year, an estimated 9 million U.S. residents fall victim to identity theft. Most of us won't even know we have been a victim of I.D. theft until we pull our credit report. That is why it is imperative you check your credit at least once a year.\nNewly opened accounts under your SSN will often suggest identity theft and you might also have items on your report that are outright false. If you see these types of items on your report, it is important that you handle these items quickly and you follow the Fair Credit Reporting Act guidelines by doing the following:\n1.  File a police report and get a copy of this report for your records.\n2.  Contact the fraud departments at all three credit reporting agencies - TransUnion (800.680.7289), Experian (888.397.3742), and Equifax (800.525.6285).\n3.  Place a 90-day fraud alert on your account with all three bureaus. You can do this over the Internet at each of the bureaus websites.\n4.  Block any item on your report that is not yours by providing the furnisher and the bureaus a copy of the police report.\n5.  Close any accounts that you suspect may have been tampered with or that the thief has opened.\n6.  Be prepared to sue companies that spread false information about you. This is your right under the FCRA.\n7.  If there is a judgment pending or entered based on a thief's activity, contact an attorney.\n8.  Dispute any and all unauthorized charges on existing accounts directly with the creditor.\nIf you have recently pulled your credit and you noticed inaccurate information listed, you have the right to dispute this inaccurate information and have it removed immediately. Taking the time to remove this incorrect information, is one way to clean up your credit and increase your credit score. On our website, we have a section dedicated to sample letters you can use to fix your credit. These are letters you can fill in and customize to your specific circumstance and these letters will get you results.\nRepairing your credit can be done on your own, but if you feel it is too much for you to handle at this time, we recommend Lexington Law for all your credit repair needs. You can fill out the form below and a paralegal will call you in a few minutes to discuss your situation. END
 TITLE: Rent Payments Reported to Credit Bureaus Helps Credit CONTENT: Help Your Credit by Reporting Rent Payments\n-------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 31, 2017_\nIf you don't have much in the way of credit or maybe you are trying to repair your credit, wouldn't it be great if your on-time rental payments were factored into your credit score? Within the last few years, more and more services have popped up that can report your timely payments to all three credit reporting bureaus. But here's the catch, the services are not free and you can not report them yourself. That means you will have to get your landlord on board with reporting your payments — which might be easy or difficult depending on the landlord and your relationship with your landlord. To use a rent reporting service, you will need to know which ones report to which bureaus and how much these services are going to cost your landlord. Read on!\nWhich Credit Score Incorporates Rent Payments? \n-----------------------------------------------\nAll three major credit bureaus - Experian, Equifax and TransUnion - do include rent payments in their credit report if they receive them, but less than 1% of all credit files contain rental tradelines. The most commonly used FICO score does not use rental payments to calculate your score but FICO 9, FICO XD, and VantageScore do.\nDo All Property Managers and Landlords Report On-Time Payments?\n---------------------------------------------------------------\nUnfortunately, no they don't. Nearly 100 million Americans rent, leaving lots of room for the growth of this promising means of helping people improve their credit scores.\nHow are Rental Payment Histories Collected?\n-------------------------------------------\nThere are now several companies that report your rental payments. A few years ago there was only one or two companies that did this but with the growing number of people who rent, it has opened up a whole new industry. This is great news for people who are not in a position to buy a home but they do make on-time monthly payments just like someone with a mortgage. Here is a listing:\n**RentReporters:** One-time enrollment fee of $39.99 to $59.99, which includes 2 years of reporting and then it is $9\/month. They report to TransUnion.\n**RentTrack:** They charge $2.95\/month and they report to all three credit bureaus. A look-back of up to 24 months is available on your current lease.\n**Rental Kharma:** Inital set up of $40 and then $9.95\/month. When you initially sign up, you can report payments made in the previous 24 months and they report to TransUnion.\n**PayYourRent:** Fees depend on how rental payment is paid and sometimes these fees are paid by the rental management company. This one reports to TransUnion and Experian.\n**ClearNow:** There is no cost if you opt in for the auto-debit of your rental payments from your checking or savings account. This one reports to Experian.\nHow Do I Know If My Property Manager or Landlord Reports Rent Payments?\n-----------------------------------------------------------------------\nAsk. And if they don't, point out that the benefits are three-fold:\n1.  It's a great way to reward good tenants.\n2.  It may help deter chronically-late paying renters who know their history will now affect at least one of their credit scores.\n3.  It's a great way to gain access to a database of renter that can prove invaluable in weeding out prospective renters.\nWhat Are the Benefits For Property Managers or Landlords to Report Rental Payments?\n-----------------------------------------------------------------------------------\nIn addition to rewarding the dependable tenants who deserve credit for on-time payments, property managers and landlords who report to any one of the above mentioned rental reporting companies, also reap the benefits of having access to its extensive database of renters. In other words, it's a great way for them to screen prospective renters.\nSo, if you are looking to rent a place or maybe you have been a renter for years, approach your landlord about reporting your payments to the credit bureaus. Not only will this help you build your credit history, there are also advantages for your landlord. Reporting on-time rental payments can be a win-win for both you and your landlord. END
 TITLE: Understanding Responses to Your Dispute Letter CONTENT: Understand Response From Credit Agencies\n----------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 25, 2017_\nThe most basic and important step in credit repair is sending a credit dispute letter to the credit reporting bureaus such as TransUnion, Experian, and Equifax. Legally, you can dispute any inaccurate information found on your credit report and the way to do that is through a credit dispute letter. After you've mailed your dispute letter to the credit bureaus and sent it certified and return receipt requested, now the waiting begins.\nFast forward 30 days from when the credit bureau received your letter (as dated on your return receipt postcard), which is the maximum amount of time the credit bureau has to respond to your dispute. You've gotten no response or maybe you've gotten a perplexing response and you want to understand what it means.\nTypical Credit Reporting Bureau Responses\n-----------------------------------------\nYou will receive one of the following responses to your dispute.\n1.  No response at all.\n2.  A rejection letter on the grounds that the dispute is frivolous or irrelevant.\n3.  A rejection letter based on the grounds the credit bureau believes you are manipulating the system.\n4.  A letter announcing an investigation into your dispute has begun.\n5.  A letter announcing your dispute has been forwarded to the appropriate credit bureau.\n6.  A new credit report showing the results of an investigation.\nYou should keep in mind the credit bureau is a for-profit company with employees trained to respond in a limited number of ways to any dispute they receive. They are not considering each dispute independently for a unique solution. If you stamp out a ferocious counter-letter in response to the credit bureau's rejection, the credit bureau employee has seen it all and will not change their position. Usually, it is better to simply write the dispute again.\nHere are the basic guidelines for reacting to the results of your dispute request.\n1.  **No response at all.**  If it's been 30 days after you've sent in your dispute, the credit bureau is in hot water. According to federal credit law spelled out in the Fair Credit Reporting Act (FCRA), a credit bureau is required to respond to you and complete their investigation within 30 days. If they do not respond within this time frame, they must remove the negative listing disputed. If they do not, they are in violation of the FCRA. This is good news for you, for you can pressure the credit bureau to remove the listing immediately. You now need to send them a follow up letter, reminding them of their legal obligations. Here is a sample letter to use and be sure to send it certified or registered and return receipt requested. Again, retain a copy of the letter, as well as the return receipt when you receive it.\n2.  **A rejection based on the grounds that the dispute is frivolous or irrelevant.**  If this dispute request is the second, third or even forth dispute for a negative listing, you can't use any dispute that you've used in the past. If you used a duplicate reason, the credit bureau has every right to classify your dispute frivolous. Re-dispute the listing giving a different reason in this case. If you are truly surprised at the frivolous or irrelevant designation, you can write them a letter requesting why they have refused to investigate. However, the best and most expedient thing to do would be to re-dispute giving a new dispute reason.\n3.  **Credit bureau thinks a credit repair company submitted the dispute.** The credit bureau believes that you are manipulating the system by using a credit repair company, and rejects your dispute. Reject this implication and insist in another dispute, that the credit bureau is shirking their responsibilities and that they are taking a very unwise risk in rejecting your dispute. All you want is for your credit report to be properly corrected.\n4.  **A letter announcing that an investigation has begun.** TransUnion will usually send these letters as a clever way of extending their investigation period. You really have no choice but to accept their timetable. Don't respond to this letter, it will allow them more time to investigate. Just place the letter in the file and watch closely for their response.\n5.  **A letter announcing that your dispute has been forwarded to the appropriate credit bureau.** If there is a local credit bureau involved in your dispute, the main credit bureau will forward your dispute to that bureau for verification. Count on an additional two week delay when this occurs.\n6.  **A new credit report showing the results of an investigation.** This is the desired result. When you receive your new report, you should copy and carefully analyze the credit report for deletions or changes.\nRestoring your credit can takes months and there really isn't a quick way to do credit repair - contrary to what you might hear from some credit repair companies. If you decided to repair your own credit, you should surmise from this article that you will encounter delays. If you need to clean up your credit quickly to secure a loan, don't get too frustrated as you may encounter these delays. Keep on keeping on and you will eventually get the negative items off of your credit report. It will all be worth the extra effort in the end when you can apply for that loan and get a great deal on an interest rate. END
 TITLE: Understanding Responses to Your Dispute Letter CONTENT:    |  |  |  | \n: . END
 TITLE: Credit Bureau Refuses to Investigate CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: April 3, 2017_\nYou have pulled your credit report and now you are disputing some of the negative items on your report. You have sent all three credit bureaus a letter advising of the inaccuracies and you are starting to get responses back from them.\nWhat may happen when disputing inquiries is the credit bureau may tell you they cannot investigate your claim. That is pure nonsense. Unfortunately, this also happens when they designate a dispute as \"frivolous.\"\nYou may get a letter like the following:\n* * *\n_Re: Your TransUnion Credit Report_\n_We recently received a dispute regarding your credit report from a third party that we believe operates as a credit repair organization. According to the Federal Trade Commission, credit reporting agencies are not required to process disputes submitted by third parties. In addition, our experience shows that many credit repair organizations dispute accurate information or submit irrelevant disputes. We have reasonably determined that the dispute submitted on your behalf is frivolous or irrelevant. For these reasons, we will not take action on the dispute._\n_Under federal law, if you believe any item on your credit report is inaccurate or incomplete, and you notify us directly, we will reinvestigate the information at no cost to you. If this is the case, please submit your dispute directly to us and identify the item(s) you believe is inaccurate and describe specifically why you believe it is inaccurate. Please complete the enclosed Request for Investigation form and return it to us at the address below. Upon receiving your request, we will reinvestigate the item(s) and respond to you in writing within 30 days._\n_Please note that we do not accept disputes from third parties unless accompanied by a notarized power of attorney that authorizes a licensed attorney or a family member to represent you, or if the power of attorney is unlimited and irrevocable._\n_If you believe the credit repair organization misrepresented its services to you, and would like to be referred to the appropriate law enforcement agencies to file a complaint, let us know and we will provide a referral._\n_If you have any additional questions or concerns, please contact TransUnion at the address shown below. When contacting our office, please provide your current file number \\*\\*\\*\\*\\*\\*\\*\\*\\*._\n_If you have any additional questions or concerns, please contact TransUnion at the address shown below, or visit us on the web at www.transunion.com for general information. When contacting our office, please provide your current file number \\*\\*\\*\\*\\*\\*\\*\\*\\*._\n* * *\n### What You Can Do\n1: Do not respond to the form letter as it grants them an extension, which is what they want.\n2: 30 days from date of receipt call their office and ask about the status of your dispute. They will probably tell you they did not investigate it because they sent a request for more information. Hang up on the operator without another word.\n3: Wait 5 days after the 30 days is expired, just in case they did investigate. If they don't send you an updated credit report, advance to the next step.\n4: Make copies of your certified mail receipt, a copy of the dispute letter you sent to TransUnion, and a copy of their \"3rd party agency\" letter. Draft a variation of your original letter.\n5: Mail the copies and this new letter to them certified mail, give them 16 days from the date they receive it, and pull a copy of your credit report.\n6: If the trade lines aren't deleted, go file a suit against them for FCRA violations, and any state laws you can come up with. Maybe include a little request for punitive damages for stress, embarrassment, degraded social standing and credit obtaining ability, etc.\n7: Wait for them to call and settle up with you. Grab a little little money and get your trade lines deleted.\nThat's all you need to do. It's a very simple procedure, really.\n### Comments\nThey should be telling you what specifically you need to provide in order to cause them to reinvestigate. If they stated certain pieces of information that you can submit that would convince them that the dispute is coming from you, then it would swing in their favor.\nIf you sue the credit bureau for this, you can move it to federal court, which could be expensive. However, in general, most bureaus have a \"cost of doing business\" lawsuit fund for situations like this. They will usually settle out of court. END
 TITLE: Obtaining and Reading Your Credit Reports CONTENT: Getting and Reading Your Credit Report\n--------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 17, 2017_\nThere are many in's and out's of repairing your credit and we are here to help you on this journey to better credit. If you are willing to take the time and to be patient, you can repair your credit on your own. The first thing to do is to request and review all three of your credit reports. This article explains how to get your reports and then how to read and understand all of the information found on them. One wonderful resource we have availabe is our discussion forum - where you can ask questions for free. If you feel this process is a bit too overwhelming, we highly recommend Lexington Law for credit repair. Or, you can watch our informational video entitled What is a Credit Report.\nHow to Get a Free Credit Report\n-------------------------------\nAll credit bureaus are required to give out one free credit report per year. You can order your free annual credit report online at AnnualCreditReport.com, or by calling 877-322-8228. When you order your reports, you will need to provide your name, address, social security number, and date of birth. To verify your identity, you may need to provide some information that only you would know, like the amount of your monthly mortgage payment.\nIf you want to order your score in addition to your free report, you will be charged an extra fee. The free reports are good for 30 days only, so make sure you print your reports and save them to a thumb drive. The other thing is that if you do any credit disputes after pulling your free report, _the credit bureaus have 45 days instead of 30 days to pull your credit reports_. Nothing is ever really free, is it? This could mean the difference, in all seriousness, in getting a deletion because of the extra time they have to investigate.\n### Are there any exceptions to getting only one free report per year?\nThere are exceptions to the one report a year rule.\n*   If you are turned down for credit, employment, or insurance within the last 60 days. Mail a copy of the written proof of your turn down to the credit bureaus, requesting your free report.\n*   If you were charged higher rates and fees or deposits based on a credit report issued by a credit bureau, you have the right to get a free copy from that bureau.\n*   If you certify in writing that either you are unemployed and plan to seek employment in the next 60 days.\n*   If you are on welfare.\n*   If you were a victim of identity fraud.\n### What are all those codes on my credit report?\nA separate key or explanation should be included with the report you receive. Sit down and spend some time going over it. If you gave it an honest try and it still seems a bit confusing, read our article on Decoding and Interpreting Your Credit Report.\nWhat is a Credit Inquiry?\n-------------------------\nWhenever anyone asks for your credit report, the request is supposed to be noted as part of your credit history. If you apply for lots of credit cards in a short time, this will produce a flurry of \"credit inquiry\" notes on your credit report. Lenders often turn this around and assume that a lot of inquiries means you've recently applied for lots of credit, so they may turn you down on that basis even though the inference is not strictly valid.\nIf a lender cites \"excessive inquiries\" as a reason for turning you down, this is what has happened. The lender has guidelines for how many inquiries and in what period of time is too many. Unfortunately, you have no legal right to challenge this policy or even to know what the specific criteria may be.\nDon't give your name or address to a merchant until you're actually ready to apply for credit there. Some merchants illegally run credit checks on you as soon as they have your name and address, even though you have not applied for credit, to give them an idea of what to sell you and how.\nIf lender A sees inquiries from B, C, and D but no new accounts, A may assume that B, C, and D turned you down for credit. Figuring \"better safe than sorry,\" A may then turn you down just because it assumes B, C, and D turned you down. Again, this is a judgment call on the part of A, and you have no legal right to challenge it. If you have not applied for any credit recently but have been, say, looking at cars at several dealerships, you might want to let the lender know this in case it's taking unauthorized inquiries into account. Also, see our information on how to remove inquiries from your credit report.\nWhat is a Charge Off?\n---------------------\nProfit and loss charge offs are used most often by credit card companies. They write the debt off on their books as uncollectable rather than spending time and lawyer's fees to collect them. Charge offs are considered a serious black mark on your credit report. Only bankruptcy and foreclosure are worse. Here is more information on profit and loss charge offs.\n### Who makes sure that agencies and creditors follow the law?\nThe Federal Trade Commission is responsible for enforcing federal credit laws.\nThe other important governmental body is **YOU**! The credit bureaus are FOR PROFIT companies and they don't do a good job of following the few laws which exist. Don't be afraid to fight back! They are _counting on public fear and inaction_. Here is a good list of agencies to call or write. END
 TITLE: Mail Letters to Creditors Certified CONTENT: Document the Letters You Sent to Creditors and CRAs\n---------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 21, 2017_\nAs we seem to say time and time again, you can repair your credit on your own for a fraction of the cost of hiring a credit repair company. But be very careful as there are some tried and true tactics you need to follow to get the job done properly. One of the most important strategies is to document your efforts. If you are sending a letter to a creditor or a credit bureau, make sure to send it via certified mail and return receipt requested.\nReasons to Send Letters Certified Mail\n--------------------------------------\nWe can't tell you how many times people have written to us and told us they can't understand why a negotiated settlement made over the phone with a creditor or a credit reporting agency didn't happen. They say the deal was lost or forgotten by the person or company making the deal.\nHello! There is no way you can _prove_ any settlement which was agreed to over the phone. Whether you are writing a dispute letter to a collection agency or credit bureau, negotiating a settlement, validating a debt or disputing a credit listing, you are not protected unless you have some record of the correspondence being mailed and received by the intended party. You must have some written proof or documentation of your dispute.  As they say - \"If it ain't in writing, it ain't.\"\nWays to Document Correspondence\n-------------------------------\nWe can not stress enough the importance of documenting all agreements, phone conversations, and disputes with a written correspondence. But, the agreement won't be worth the paper it is written on if you can not prove the letter was ever received. That is why you want to make sure you send all your letters so that they can be tracked and verified they were received by the intended party. There are many ways to get proof that your letter was received.\n1.  **Send Your Letter Certified Mail with a Return Receipt.**  Depending on the size of the letter and the distance it travels, you will spend approximately 5 to 6 dollars per letter. When you do this, you will have proof of when the letter was mailed and you will be sent a green postcard showing the letter was received and someone actually signed for this letter. This is your proof that your letter reached the intended destination and when they received your letter. This is very important since there is a time deadline of 30 days for the credit bureaus to respond to your letter.\n2.  **Online Mail Services.**  There are a couple of online services which allow you to send a letter certified return receipt requested via your computer, just as if you had gone down to the post office.  \n    *   USPS — You can print a label to mail your letter which will provide you a tracking number.\n    *   Click2Mail — This is another online service where you can print labels for certified mail.\n3.  **UPS and Federal Express.**  Both of these carriers will provide a tracking number and afford a better chance of your letter being delivered. In the case of a collection agency, which may refuse certified mail, these carriers deliver your letter personally and are less likely to be refused.\nRemember to keep a copy of all letters sent to creditors, credit bureaus or collection agencies along with the proof of mailing and the return receipt post card showing when they signed for your letter. Keeping logs, records and receipts of letters sent can easily mean the difference between success and failure when it comes to getting negative items removed from your credit report.\nWant even more tips on documentation and record keeping? Read our article Documentation and Organization Are Keys To Credit Repair Success. END
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 TITLE: Sample Cease and Desist Letter CONTENT: Sample Cease and Desist Letter — Stop Debt Collector Harassment\n---------------------------------------------------------------\n###### Written by: Kristy Welsh\nUse this sample cease and desist letter if you are being harassed by a collection agency and you want them to stop contacting you.\n----------------------------------------------------------------------------------------------------------------------------------\nOwing debt to a collection agency is bad enough — but to then be harassed by them day after day can get downright tiring. As per the Fair Debt Collection Practices Act, if you demand that a collection agency stop contacting you, they must stop. If they continue to harass you after you have sent them this letter, you have legal recourse against them. Check out our article on suing your creditors.\nPlease do not just copy this letter for your use. You will need to edit this letter to fit your particular situation. Always keep of copy of your letter for your records and make sure to send this certified mail. That way you have proof the collection agency received your letter.\nThis template letter is part of our sample letters we have created to help you handle a variety of credit situations. You can also visit our bookstore where you can purchase eBooks on credit repair, debt settlement, and 95 sample letters which are all available for instant download.\n* * *\nDate\nName  \nAddress\nCollection Agency  \nCollection Agency Address\nRE: Account #xxxxx-xxxxxx\nDear Collection Agency,\nUnder the Fair Debt Collection Practices Act Section 805 (C), it is my right to request that you cease contact with me imediately. With this notice, under the law, you can now only contact me to:\n1.  Advise me that your company's further efforts are being terminated\n2.  Notify me that your company may invoke specified remedies which are ordinarily invoked by such debt collector or creditor; or\n3.  Notify me that your company intends to invoke a specified remedy\nBe advised that if collection attempts continue after receipt of this notice, I will immediately file a complaint with the Federal Trade Commission and the (list your state) Attorney General’s office.\nAdditionally, if I’m contacted again after receipt of this notice, I will pursue both criminal and civil claims against you and your company for violation of the FDCPA. Please be aware that going forward, any communications from your company may be recorded to be used as evidence for my claims against you.\nSincerely,\n_Your Signature_ END
 TITLE: Zombie Debt Sample Letter - Collecting Zombie Debt CONTENT: Zombie Debt — Remove Old Zombie Debt\n------------------------------------\n###### Written by: Kristy Welsh\nSend this zombie debt letter to collection agency.\n--------------------------------------------------\nIf a collection agency is coming after you for debt that is outside of the statute of limitations, it is called Zombie Debt. This letter is a triple whammy - not only does it tell the collection agency to get lost because the debt is outside of the statute of limitations, but is also requests a cease and desist under the FDCPA and also requests an investigation under the FCRA.\nCheck out all of our sample credit repair and debt settlement letters to handle a variety of credit situations. You can also visit our bookstore where you can purchase eBooks on credit repair, debt settlement and 95 sample letters - all available for instant download. \n* * *\nDate\nName  \nAddress\nCollection Agency  \nCollection Agency Address\nRe: Acct # XXXX-XXXX-XXXX-XXXX\nTo Whom It May Concern:\nI am continually being called on the telephone by your firm over an alleged (fill in the amount) debt. According to the information given to us by your firm, the date of last activity by the original creditor was (date). The State of Limitations on this alleged debt, even should it be ours, is X years in the state of (your state). Since the debt is out of the statute of limitations, and you are reporting this on my credit report, you are conducting collection activities on zombie debt.\nI'm sure you are aware of the provisions in the Fair Debt Collection Practices Act (FDCPA). However, I would like to point out that your firm has violated provisions of the FDCPA by implying that the legal status of the debt is collectible by reporting the alleged debt to the credit bureaus. The exact statute:\n**\\[15 USC 1692e\\]**  \n(2) The false representation of --\n(A) the legal status of the alleged debt\nand\n(B) any services rendered or compensation which may be lawfully received by any debt collector for the collection of a debt.\nI am also doubtful that you would have adequate documentation to prove in court that you have the right to report this negative information on my credit report, and therefore you are in violation of the Fair Credit Reporting Act as well as the FDCPA. However, I will give you the chance to prove that you are lawfully entitled to report this information by requesting an investigation.\nUnder the FDCPA I am also invoking my right to ask you to stop contacting me unless you can provide adequate validation of this alleged debt or notification that you are ceasing collections activities.\nPlease remove this account immediately from my credit report or I will have to take legal remedies which may include lawsuits and notifying our state attorney general's office. In addition, I'm sure your legal staff will agree that non-compliance with this request could put your company in serious legal trouble with the FTC and other state or federal agencies. Under the FCRA and the FDCPA, each violation is subject to a $1,000 fine, payable to me.\nSincerely,\n_Your Signature_\n* * * END
 TITLE: Understand Your Credit Reports and Credit History CONTENT: Interpreting Your Credit Report\n-------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 16, 2017_\nAre ready to tackle your bad credit and increase your credit score? If so, the first step is to order your credit reports. But, if you are like most people, you may have a hard time understanding what your credit score means let alone interpreting all of the information contained in the pages and pages of you credit history.\nAlthough each credit reporting agency may have a slightly different format, all credit reports contain basically the same categories of information. You can order all three free credit reports from annualcreditreport.com, where it is easy to interpret them. Here are the basic categories of information found in your credit report.\n### Identifying Information\nYour name, address, Social Security number, date of birth, and employment information are used to identify you. You may have multiple versions of your name, especially if you are a married\/divorced female who has changed her name a few times. This section will also show any nicknames and abbreviations of your name that might be luring out there. Your current and any previous addresses will be listed as well. These factors are not used in credit scoring and updates to this information come from information you have supplied to lenders.\n### Trade Lines\nThese are your credit accounts. Lenders report on each account that is established with them. They report the type of account, the date you opened the account, your credit limit, your loan amount, the account balance, and your payment history.\nThere are three different types of credit account classifications:\n*   **Mortgage Accounts.** These include first and second mortgages, home equity loans, and any other loans secured by real estate that you own.\n*   **Revolving Accounts.** Revolving accounts are charge accounts that have a credit limit and require a minimum payment each month. The most common of these are credit cards.\n*   **Installment Accounts.** Installment accounts are credit accounts where the amount of the payment and the number of payments are predetermined or fixed, such as a car loan.\n### Credit Inquiries\nThere are two types of credit inquiries, hard inquiries and soft inquiries. When you apply for a loan, you authorize the lender to ask for a copy of your credit report. This is a hard inquiry and these do affect your credit score.  A soft inquiry, or involuntary inquiry, is when a creditor orders your report prior to sending you one of those \"pre-approved\" offers for credit.  This type of inquiry does not affect your credit rating.\n### Public Record and Collection Items\nCredit reporting agencies also collect public record information from state and county courts, and information on overdue debt from collection agencies. Public record information includes bankruptcies, foreclosures, suits, wage attachments, liens and judgments.\n### Satisfactory Accounts and Negatives Items\nAll three of the major credit reporting agencies (TransUnion, Equifax, Experian) will separate positive accounts from negative ones, thereby making the interpretation of your report a little easier. The Equifax report gives a nice \"Credit Summary\" which provides a one-page, easy to review snapshot of all your open accounts, as well as some useful summary statistics, such as total debt by account type, debt to credit ratio by account type, and length of credit history.\nIn the section showing the negative items, these accounts will be listed showing when a late payment occurred and how late is was, the balance on these accounts, and if this account was a charge-off or went to a collection agency. It will usually have the address of the creditor and the account number listed as well.\n### Credit Report Codes\nWe found a great site which provides each of the three credit bureau report layouts and an explanation of all the codes found on each report. This site explains the payment history codes, the public record codes, the trade check rating codes, and breaks down each section of the report. If there is anything on your credit report you do not understand, go to one of the links below and you will find out what all the codes mean.\n*   Experian Credit Report Format and Codes\n*   TransUnion Credit Report Format and Codes\n*   Equifax Credit Report Format and Codes\n*   Risk Factor Reason Codes\n### Common Questions About Credit Reports\n**How often should you check your credit report?** As a rule of thumb, you should check your credit report once a year. If you are planning any big purchases, like a house or car, it is a good idea to check your credit report well ahead of time so you don't have any surprises during the loan process.\n**Why are my credit reports different?** If you compare your credit reports side-by-side, you may notice they are not the same. That is because not all businesses report to all three credit bureaus. Credit bureaus typically do not share information so not all your account information makes it on to all three credit reports.\n**What does my credit report have to do with my credit score?** Your credit report is a detailed history of your credit accounts including payment history, credit limit, highest balance ever charged, and age of the account. Your credit score is a numeric representation of your credit report.\n**Will my spouse's information appear on my credit report?** Your credit report will contain only your credit and loan accounts. The exception is joint accounts shared between you and your spouse. Here, the account history will be reported on both your and your spouse's credit report. Similarly, if one spouse is an authorized user on the other spouse's account or one spouse co-signs another's account, the account history will be reported on both credit reports.\n**How do I know if I have any late payments on any of my accounts?** All three reports seem to be pretty consistent on this. They use a little square with either 30, 60, 90, or 120 in it and you don't want anything but a \"zero\" underneath that symbol. You want to see \"OK\" in green shown, or under \"status\" the notation \"never late.\"\n**What does \"charged-off\" - \"bad debt\" or \"placed for collections\" mean?** This means the account went longer than 120 to 180 days without a payment from you. At this point, the credit card company decided the debt was not going to be collected from you, and decided to write it off. The company took the IRS tax deduction and sold the debt to a debt collector. Many of the recent real estate short sales may end up as charge-offs on a consumer's credit report.\n**What does \"Account Closed by Credit Grantor\" mean?** The credit card company was worried you would default on the debt and shut down your ability to access any more of your credit line. This sometimes happens if you are defaulting on other cards, also referred to as universal default.\n**What does \"Account Balance\" mean?** Fairly straightforward, this is the amount owed on the loan, whether it is a credit card balance or the balance of a home mortgage or installment loan.\n**What does \"High Balance\" mean?** This is the most you ever owed on the loan, whether it is a credit card balance or the balance of a home mortgage or installment loan.\n**What is \"Date of Last Activity\" (DOLA)?** This will be specified on the report as \"last updated\" or \"last activity\" and basically is the last date any account activity occurred, typically the last time you made a payment. END
 TITLE: Use Method of Verification When Repairing Your Credit CONTENT: Using Method of Verification to Repair Your Credit\n--------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 30, 2017_\nEveryone, it seems through mass media coverage, knows how to dispute negative credit listings on a credit report. This is a good thing. However, many people are foiled in their credit dispute efforts because of the way the credit bureaus investigate disputes.\nIf you get a notice from a credit bureau telling you the information you disputed has been _verified_ as accurate, you have a right to request verification. According to the Fair Credit Reporting Act (FCRA), the credit reporting agency is required to give you method of verification within 15 days of your request. This should be hard evidence that goes all the way back to the original creditor.\nWill the Method of Verification Help Your Credit Repair Efforts?\n----------------------------------------------------------------\nThe credit bureaus are not doing their job as far as performing an investigation. You can call them on this by asking for the method of verification. Most times the CRAs simply deny that they have a responsibility to provide the method of verification. The statute is plenty clear, though, and it's always a good idea to make the request.\nHow to Know If Your Dispute is Being Investigated Properly\n----------------------------------------------------------\nEach credit reporting agency has a different process for handling credit report disputes, but all three use a similar system. The three bureaus collaborated through their trade organization to automate the entire reinvestigation process using an online computer program, e-Oscar. Both the credit bureaus and information furnishers (for instance a bank or a collection agency who reports an account to the credit bureaus) use this system to investigate disputes.\ne-OSCAR consists of taking a dispute and \"categorizing\" the dispute into a two letter code. According to a 2006 FTC report (\"Report to Congress on the Fair Credit Reporting Act Dispute Process\") there are 26 e-OSCAR codes that can be used as a reason for dispute such as \"Not his\/hers\" and \"Claims account closed.\"\nAll disputes received by the credit bureaus are done either via written letter, the telephone or the credit bureaus online dispute service. Even if the credit bureau receives a written dispute highly detailed and with documentation, each dispute is reduced to one of the 26 two-digit code - the best guess of a minimum wage employee.\nThe credit bureau will try to resolve the dispute internally (as in a case where the supporting documentation can reasonable determines to be verified as authentic.\nIf a dispute cannot be resolved internally, the credit bureaus are required to send the all of the supporting documentation regarding the dispute on to the furnisher of the consumer's account, but all they receive is the two-digit code.\nWriting a Method of Verification Letter\n---------------------------------------\nIf your credit dispute comes back verified, but with no actual documentation supporting the verification, you can now send them a letter of verification to request this documentation.\n1.  Challenge the listing thru the normal channels.\n2.  If verified, with a copy of the investigation result in hand, call the CRA at the toll-free number listed at the top of the report.\n3.  Give the report reference number and ask for method of verification per FCRA Section 611.\n4.  They will have never called the original creditor, but will have relied on a third party database to verify, which they may or may not admit to you. If they can't cite solid evidence like \"we called the original creditor and they verified,\" ask for their phone number.\n5.  Call the original creditor and ask for the records.\n6.  If the creditor doesn't have them (they will typically tell you that the collection agency has them and they don't keep them), get the person's name and direct line. If they do have them, demand a copy under the new FACTA act.\n7.  If you are sent records, review them and see how good they are. If they are not conclusive, take the next step.\n8.  If the original creditor has no records;\n    *   Call the CRA back and tell them the OC has no records.\n    *   Inform the CRA that they need to open another dispute. The new information for the dispute is the name and number of the person to whom you have just called at the OC.\n    *   If they refuse, inform them you will sue for willful non-compliance under section FCRA ß 616.\n    *   If they still refuse, send the information via certified letter along with an intent to sue letter. If not, they will give you a new confirmation number. This acts as a new investigation, and the CRA has 30 days to get back to you.\n9.  If you have written records proving the OC can't back up the negative listing(s) they are reporting on your credit report, send them registered mail to the CRA along with an intent to sue letter if the account is not removed.\nThe credit reporting agency should respond to you within 15 days. If not, and you have told them you indent to sue them, at this point it would be wise to contact an attorney to help you proceed with the dispute. END
 TITLE: Use Method of Verification When Repairing Your Credit CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Use Method of Verification When Repairing Your Credit CONTENT:    |  |  |  | \n: . END
 TITLE: Letter to Notify Collection Agency You are Filing Lawsuit CONTENT: Suing a Collection Agency\n-------------------------\n###### Written by: Kristy Welsh\nUse this sample letter to advise a collection agency you are suing them.\n------------------------------------------------------------------------\nThe Fair Debt Collection Practices Act (FDCPA) offers consumers protection against overly aggressive debt collection actions by debt collectors and debt collection agencies. If a bill collector has violated federal law in its dealings with you, there are steps you can take depending on your goal. These range from suing the debt collector to reporting the collector to government agencies to using the violations as a negotiation tactic on the debt. \nThe following sample letter can be used to notify a collection agency you are planning to file a lawsuit against them for violating your rights. If you don't get a response to your previously sent debt validation letter, send this letter out to them. It is recommended you spell out the specifics as to what has been going on — describe what they're doing that's wrong, and what you want them to do to stop it. Spell it out clear and simple.\nDo not simply copy and past this letter. You need to tailor the wording of this letter to fit your particular situation. Also, it is a good idea to site the violations committed by the debt collector as they pertain to the FDCPA. This sample letter is part of our debt validation section. Another good source of sample letters can be found on this page.\n* * *\nDate\nYour Name  \nYour Address  \nCity, State Zip\nCollection Agency  \nCollection Agency Address  \nCity, State Zip\nRE: Account #xxxx-xxxx-xxxx\nTo Whom it May Concern,\nYour firm has failed to send the legally required validation of this debt. You have been notified that your actions are detrimental to me and that your firm has violated (including but not limited to) the Consumer Credit Protection Act, the Fair Credit Reporting Act, and the Fair Debt Collection Practices Act.\nYour firm knew or should have known that the actions taken against me and the information collected about me was inappropriate and damaging to me.\nFailed to use reasonable care in the course of business and failed to use even minimal procedures to ensure that I was not harmed.\nCommunicated and are continuing to communicate incorrect and defamatory information to third parties including but not limited to: Equifax, Experian, and Trans Union.\nAs a result of these blatantly reckless, wanton, and intentional acts, I have suffered and continue to suffer general and specific damages. I am also very upset at your firm's intentional infliction of emotional distress and at the other diminishes of the quality of my life.\nI am now demanding the immediate and complete removal of this trade line from my credit reports (Equifax, Experian, and Trans Union).\nAs I am currently attempting to apply for credit, time is of the essence. Please understand that I am extremely concerned about the consequences of the actions your firm is having on my life. Please be advised that, if this matter is not resolved by xxx, I will take any and all necessary steps to protect my rights.\nThank you in advance for your attention to this matter.\nSincerely,\n_Your Signature_\n* * * END
 TITLE: Information Needed to Dispute an Item on Your Credit Report CONTENT: Information Needed When Disputing an Error on Credit Report\n-----------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 18, 2017_\nWhen requesting a credit report or writing a letter to the credit bureaus disputing a negative item, it is a good idea to include all of the below information. The more information you provide to them at the beginning, the less likely you will get a letter back from them requesting additional verification — that only prolongs the process. Remember to always make copies of what you mail to the bureaus for your records and always remember to sign your request. You should provide:\n*   Your full legal name\n*   Your date of birth\n*   Social Security number\n*   Current mailing address\n*   If less than 5 years, include your previous address\n*   Copy of your driver's license showing current address\n*   Copy of Social Security card - if your SS number is not on your driver's license\n**If you have a letter denying you credit**, employment, or insurance within the last 30 days, a copy of the letter should be provided, since this will allow to obtain a free copy of your credit report.\nIf you ordered your credit report, within 10 to 30 days you should receive a copy of your credit report from each of the agencies.\nIf you are disputing items on your reports, the credit bureaus are required to respond in writing within 30 days of receipt of your letter. **Also Note:** It's always a good idea to send your correspondence via registered mail so you have proof the credit bureau received your request during disputes. END
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 TITLE: How to Use the 623 Dispute Method CONTENT: Using 623 Method to File a Dispute With a Creditor\n--------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 23, 2017_\nIf you have tired disputing inaccurate information found on your credit report but these attempts were met with failed results, the 623 dispute method may be a viable alternative to getting erroneous or unconfirmed information removed from your credit report. The 623 dispute method allows you to dispute any inaccurate information on your credit report directly with the original creditor.\nHow Does the 623 Dispute Method Work?\n-------------------------------------\nA 623 dispute does not work in the same way as a traditional dispute because you are not asking for verification of the debt, but for an investigation as to the accuracy of the records on that debt. If you creditor does not have accurate records pertaining to that debt, then they must remove the negative information on your credit report.\nWill a 623 Dispute Really Fix Your Credit?\n------------------------------------------\nYou think to yourself - \"Hey, the Original Creditor must have great records, they will be able to show me proof in a heartbeat, right?\" _**Wrong.**_ There are a few creditors who keep decent records, but most credit card companies only keep records for 13 to 18 months. And if that's the case, and if you have late payments on your credit report prior to this period, they won't be able to prove you were late and they need to remove negative information if they can't prove it, per the law.\nWith all of the bank consolidations in recent years, many of the credit card and some other mortgage lending companies haven't been good about keeping their acquisition's records in the best of shape. Keeping information current in databases costs a lot of money to import data from one system to another. There are many companies who don't spend the money.\nThis is not speculation. We've talked to many clients who have placed calls to their creditors, and the companies have _**NO RECORDS**_ at all for them, let alone records of specific late payments, yet these creditors continue to report negative information on a client's credit reports. This is illegal!\n### Case Law Reference\nWhile case law has established for the past few years that the original creditor can be held liable for reporting inaccurate information (Richardson vs. Fleet, Nelson vs. Chase Manhattan), the FACTA legislation passed recently allows the consumer to go directly to the original creditor and dispute information which the original creditor (called the information furnisher) in the FCRA, has supplied to the credit bureaus.\nHowever, before disputing with the original creditor, the **CONSUMER MUST HAVE DISPUTED WITH THE CREDIT BUREAUS** first. We'll see why later.\n### The Language of the Law\nHere is the exact statute in the FCRA:\n§ 623. (a)(8) ABILITY OF CONSUMER TO DISPUTE INFORMATION DIRECTLY WITH FURNISHER\n(A) IN GENERAL The Federal banking agencies, the National Credit Union Administration, and the Commission shall jointly prescribe regulations that shall identify the circumstances under which a furnisher shall be required to reinvestigate a dispute concerning the accuracy of information contained in a consumer report on the consumer, based on a direct request of a consumer.\n(B) CONSIDERATIONS - In prescribing regulations under subparagraph (A), the agencies shall weigh--\n(i) the benefits to consumers with the costs on furnishers and the credit reporting system;\n(ii) the impact on the overall accuracy and integrity of consumer reports of any such requirements;\n(iii) whether direct contact by the consumer with the furnisher would likely result in the most expeditious resolution of any such dispute; and\n(iv) the potential impact on the credit reporting process if credit repair organizations, as defined in section 403(3), including entities that would be a credit repair organization, but for section 403(3)(B)(i), are able to circumvent the prohibition in subparagraph (G).\n(C) APPLICABILITY Subparagraphs (D) through (G) shall apply in any circumstance identified under the regulations promulgated under subparagraph (A).\n(D) SUBMITTING A NOTICE OF DISPUTE- A consumer who seeks to dispute the accuracy of information shall provide a dispute notice directly to such person at the address specified by the person for such notices that--\n(i) identifies the specific information that is being disputed;\n(ii) explains the basis for the dispute; and\n(iii) includes all supporting documentation required by the furnisher to substantiate the basis of the dispute.\n(E) DUTY OF PERSON AFTER RECEIVING NOTICE OF DISPUTE- After receiving a notice of dispute from a consumer pursuant to subparagraph (D), the person that provided the information in dispute to a consumer reporting agency shall--\n(i) conduct an investigation with respect to the disputed information;\n(ii) review all relevant information provided by the consumer with the notice;\n(iii) complete such person's investigation of the dispute and report the results of the investigation to the consumer before the expiration of the period under section 611(a)(1) within which a consumer reporting agency would be required to complete its action if the consumer had elected to dispute the information under that section; and\n(iv) if the investigation finds that the information reported was inaccurate, promptly notify each consumer reporting agency to which the person furnished the inaccurate information of that determination and provide to the agency any correction to that information that is necessary to make the information provided by the person accurate.\n(F) FRIVOLOUS OR IRRELEVANT DISPUTE-\n(i) IN GENERAL- This paragraph shall not apply if the person receiving a notice of a dispute from a consumer reasonably determines that the dispute is frivolous or irrelevant, including--\n(I) by reason of the failure of a consumer to provide sufficient information to investigate the disputed information; or\n(II) the submission by a consumer of a dispute that is substantially the same as a dispute previously submitted by or for the consumer, either directly to the person or through a consumer reporting agency under subsection (b), with respect to which the person has already performed the person's duties under this paragraph or subsection (b), as applicable.\n(ii) NOTICE OF DETERMINATION - Upon making any determination under clause (i) that a dispute is frivolous or irrelevant, the person shall notify the consumer of such determination not later than 5 business days after making such determination, by mail or, if authorized by the consumer for that purpose, by any other means available to the person.\n(iii) CONTENTS OF NOTICE - A notice under clause (ii) shall include--\n(I) the reasons for the determination under clause (i); and\n(II) identification of any information required to investigate the disputed information, which may consist of a standardized form describing the general nature of such information.\n**and**\n§ 623. (b) Duties of furnishers of information upon notice of dispute.\n(1) In general. After receiving notice pursuant to section 611(a)(2) \\[§ 1681i\\] of a dispute with regard to the completeness or accuracy of any information provided by a person to a consumer reporting agency, the person shall\n(A) conduct an investigation with respect to the disputed information;\n(B) review all relevant information provided by the consumer reporting agency pursuant to section 611(a)(2) \\[§ 1681i\\];\n(C) report the results of the investigation to the consumer reporting agency;\n(D) if the investigation finds that the information is incomplete or inaccurate, report those results to all other consumer reporting agencies to which the person furnished the information and that compile and maintain files on consumers on a nationwide basis; and\n(E) if an item of information disputed by a consumer is found to be inaccurate or incomplete or cannot be verified after any reinvestigation under paragraph (1), for purposes of reporting to a consumer reporting agency only, as appropriate, based on the results of the reinvestigation promptly --\n(i) modify that item of information;\n(ii) delete that item of information; or\n(iii) permanently block the reporting of that item of information.\nWhat Does This All Mean?\n------------------------\nNow that your head is spinning with all that law, here is what is really means.\nBasically, you can dispute information placed on your credit report by an original creditor in the same way as you would with a credit bureau. An original creditor must do the following.\n*   Conduct an investigation of the dispute.\n*   Review all information provided by the consumer relating to the dispute.\n*   Respond within 30 days to the investigation.\n*   If the information is inaccurate, they must notify the credit bureaus of the mistake and tell the credit bureau to correct it.\nHowever, the creditor can also determine the dispute is frivolous just like a credit bureau can. Some reasons as to why a dispute may be frivolous.\n*   You just disputed the same thing without changing the reason for the dispute.\n*   You haven't provided enough information for the creditor to conduct an investigation. At the minimum, you need to identify the account by account number and provide a reason why you are disputing.\nIf the creditor does determine the dispute is frivolous, they must notify you in writing by any other means available to the person within 5 days.\nWhat Happens if the Creditor Fails to Comply with the Law?\n----------------------------------------------------------\nIf the original creditor fails to comply with your dispute, they are in violation of the FCRA, but you can't sue them unless you have disputed with the Credit Bureaus _**first**_.\nDisputing with the credit bureau first is not something you can shortcut or forget. In order to place the liability of reporting accurately squarely on the shoulders of the creditor, you must have disputed the listing with the credit bureaus. This means you have either online, via the telephone or in writing, disputed a listing with the credit bureaus and then WAITED FOR THE RESULTS OF THE INVESTIGATION.\nHere is the law which enforces the fact that you must dispute with the credit bureau first:\n§ 623. (c) LIMITATION ON LIABILITY- Except as provided in section 621(c)(1)(B), sections 616 and 617 do not apply to any violation of--\n(1) subsection (a) of this section, including any regulations issued thereunder;\n(2) subsection (e) of this section, except that nothing in this paragraph shall limit, expand, or otherwise affect liability under section 616 or 617, as applicable, for violations of subsection (b) of this section;\nSections 616 and 617 of the FCRA talk about how much the fines are for violations of the FCRA (the willful and negligent non compliance), typically $1,000.\nWhat the above section of the FCRA § 623(c) means is that if you dispute with the original creditors first, _**without having disputing through the credit bureaus**_, and they refuse to answer you, or provide you with proof, yes, they are in violation of the FCRA, but you as a private citizen cannot take them to court and sue them; only your state authorities (like your state attorney general) or federal authorities (like the FTC) can sue them.\nHowever, if you have disputed the information with **the credit bureaus first**, they are supposed to have talked to the original creditor, even though we know that doesn't happen, and the original creditor is supposed to have at that time conducted an investigation, under FCRA § 623(b), under which you, as a private citizen can sue them. When you go to the original creditor under FCRA § 623(a)(8), you are just merely asking for the OC's proof that they must have provided to the credit bureaus during the OC's thorough investigation. If they have no proof of negative information, but the credit bureau says that the results of the investigation show the negative information is accurate, then you have the OC on an actionable, sue-able (by you) offense.\n**_Once again, YOU MUST DISPUTE WITH THE CREDIT BUREAUS FIRST - Have we said this often enough??_**\nSteps to Dispute with Original Creditor\n---------------------------------------\nWhat is the exact procedure when you want to dispute things with the original creditor?\n1.  Dispute the listing with the credit bureau.\n2.  Wait for the results of the investigation.\n3.  If the listing is deleted or modified per your desires, you're done!\n**If the information furnisher does not get back to you within 30 days:**\n1.  You need to send a letter to the company's legal department informing them they are in violation of the FCRA and you intend to sue if they do not remove the listing.\n2.  If they do not remove the listing, you will have to sue if you want to get it off.\n**If the information furnisher says the results of the investigation is verified, then:**\n1.  Call up the credit card company and ask them what kind of documentation they have to prove the negative mark. Many times they will have nothing.\n2.  If they admit to having nothing, send this letter to their legal department:\n    _Dear Legal Department:_\n    _Re: Acct #XXXXXXXX_\n    _This letter is in regards to a phone call I placed to your company regarding the account listed above on <Insert Date>. I called to inquire about this account that is listed on my Credit Reports. I spoke to <Insert Customer Service Representative named> and her employee number is <Insert #>, as provided by her. She informed me that your company does not have any information on this account that it was all sent to a collection agency. How did you investigate this account with out any documentation? I contacted the collection agency your rep told me about and they could not validate the debt. This collection agency subsequently removed all information regarding this account from my credit reports. If this incorrect information is not removed from my credit reports, I will file suit against your company._\n    _Sincerely,_ END
 TITLE: How to Use the 623 Dispute Method CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Find Creditor or Collection Agency Address or Phone Number CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: March 30, 2017_\nOne part of repairing your credit is getting in touch with a creditor or collection agency in an effort to settle an outstanding debt. On our credit repair forum we see visitors asking how they can get in touch with their creditors or how to contact a collection agency. They know they owe money but have no idea who or what their address or phone number could possibly be. This frequently happens when we get behind on our payments and just plain 'ol forget about them all together.\nThe best way to obtain this information is to request copies of your credit reports. You can get one free copy a year from AnnualCreditReport.com. If you want to be able to access your report throughout the year or maybe get notifications of changes on your credit reports, you can sign up for a free credit report and score. Our article on how to order your credit reports compares all the offers out there so you can pick which credit report company works for you. \nInformation is on Your Credit Report\n------------------------------------\nAfter you get your credit reports, you will see a listing of the names and contact information for each company you owe money to. You will also see if your account was transferred to a collection company, and if so, it will show you the contact information for that agency. Use this information to send your dispute and\/or contact letters. There will be an abbreviated account number listed so make sure to include this number on your correspondence.\nOther Methods to Locate a Creditor or Collection Agency\n-------------------------------------------------------\nSometimes you may get your letters back with a stamp \"return to sender\" as what you thought was a correct address, turns out to be wrong. If you are having trouble getting in contact with a creditor or a collection agency because you don't know where to send them letters, here are some resources:\n*   Search the Internet - This is probably the first thing to try. Open a browser, such as Firefox or Chrome, and go to www.google.com or www.bing.com and type in the name of the creditor or collection agency. Chances are good that if they are still in business, you will pull up their website. From here, you can go to their \"\" page and obtain their mailing address and phone number.\n*   Search the BBB - Go to the The Better Business Bureau website and do a business search. If they are affiliated with the BBB, you will be able to obtain their contact information.\n*   If those two searches come up empty, try calling your state attorney general, who usually works with your state's consumer protection agency.\n*   Lastly, you can also try your state's corporation commission.\nHopefully one of these ways will get you the information you need. It is important to know where to send your credit dispute letters if you are planning to repair your credit. And, don't forget to send all correspondence certified and return receipt so you know the intended party received your letter. END
 TITLE: Find Creditor or Collection Agency Address or Phone Number CONTENT:    |  |  |  | \n: . END
 TITLE: Keeping Creditors at Bay - Ways to Keep Creditors Away CONTENT: Seven Savvy Ways to Keep Your Creditors at Bay\n----------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 29, 2017_\nIf you are unable to make your monthly payments on credit cards or other debts, there are steps you can take to minimize the potential negative impact to your credit. While ignoring the situation may feel like the easiest, most welcome alternative, that's the last thing you want to do. Instead, take these proactive steps to keep the line of communication open with creditors in a thoughtful, controlled manner that will maximize the potential for both stress and debt relief.\n1.  **Hide in Plain Site.** The last thing you want to do is ignore a creditor's attempts to collect from you. The harder you are to reach, the more extreme measures they will take to demand your attention, which can include lawsuits. Now, this need not mean you engage in lengthy conversations with creditors; only that you respond to phone calls and\/or letters with the truth - you cannot afford to make payments to them right now.\n2.  **Write Letters of Validation.** If a creditor cannot prove you owe a debt, then you are not legally required to pay it. So, send your creditor our debt validation letter. If they cannot provide such proof, you are under no legal obligation to pay.\n3.  **Send Everything Via Certified Mail.** All the letter-writing in the world may not do you a bit of good if you cannot prove their receipt. Certified mail makes sure you can.\n4.  **Record All Communications.** Record all of your phone conversations with creditors and keep copies of all written correspondence, and inform them of such. This should help deter them from crossing lines, or give you legal legs to stand on if and when they violate your rights.\n5.  **Use a Pre-Paid Phone.** There are few things more maddening than fielding calls from creditors at all hours of the day, every day. Control some of the madness by containing all of your creditor calls via one pre-paid phone number. Of course, this will require you to change your regular phone number through which you have already been communicating. To prevent them from getting your new one, try a pre-paid phone as well for friends and family.\n6.  **Cancel Automatic Payments.** If you have automatic bank withdrawals set up with creditors, cancel them immediately. If you still see debits coming out of your account, you can always close that account and open a new one.\n7.  **Move Money From Checking and Savings Account With Banks to Whom You Owe Money.** Banks have the legal right to seize funds from your checking or savings account if you also have a line of unpaid credit through said bank, so don't give them that opportunity.\nIncorporating one or more of these tactics can buy you some time with creditors while you are trying to fix your credit. These will not make the problem go away completely, but they will give you a little wiggle room so you can focus your attention on repairing your credit and\/or putting together the funds you need to pay off this debts. END
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 TITLE: Sample Letter for California Full Payment Law CONTENT: ###### Written by: Kristy Welsh\nCalifornians Get a Break on Full Payment Laws\n---------------------------------------------\nWhen settling debts in the state of California, there are instances where some different rules apply. In the state of California, a creditor is allowed to cross out the full payment language on a settlement check which reserves the right for them to sue you in the future for the balance due. However, when they passed this law, they also passed a separate law allowing California debtors to get around it. Navigating around this law requires specific steps and language. To do so, follow this procedure exactly.\nDo not just simply copy and past this letter. You need to edit it to fit your particular situation. This sample letter is just a mere template to follow. We have more sample credit repair letters to handle a variety of credit situations. You can also visit our bookstore where you can purchase eBooks on credit repair, debt settlement, and 95 sample letters all available for instant download.\n* * *\nDate\nAccount #XXX-XX-XXXX\nDear Creditor,\nThis letter concerns the money I owe you. For the past three months I have received bills from you stating that I owe (insert amount) for (what money was for). Because of the incredibly inferior condition of the merchandise I have received, I feel I owe you no more than (insert amount). It is obvious that there is a good faith dispute over this bill.\nIn order to settle this debt, I will send you a check for (insert amount) with a restrictive endorsement stating if you cash that check it will constitute an accord and satisfaction. In other words, you will receive from me a check that states \"cashing of this check constitutes payment in full.\" If you cash this check, that check will take care of what I owe you.\nSincerely,\nYour Name\nWait 30 to 90 days to give the creditor time to object. If you do not receive any objection from the creditor, send the check with a letter stating this check constitutes payment in full. Here is the letter.\nDate\nAccount #XXX-XX-XXXX\nDear Creditor\nEnclosed is a check for (insert amount) to cover the balance of above mentioned account. This check is tendered in accordance with my letter of (date). If you cash this check, you agree that my debt is satisfied in full.\nSincerely,\nYour Name\n_Important:_ Write on the bottom of the check on the front along the top or bottom the exact language you used in the second letter \"This check is tendered in accordance with my letter of (date). If you cash this check you agree that my debt is paid in full.\"\n* * * END
 TITLE: Sample Letter for California Full Payment Law CONTENT:    |  |  |  | \n: . END
 TITLE: Letter Explaining Late Payments When Applying for Credit CONTENT: Letter to Explain Late Payments\n-------------------------------\n###### Written by: Kristy Welsh\nUse this sample letter to explain late payments when applying for credit.\n-------------------------------------------------------------------------\nOver the past few months, you have been working hard to repair your credit because you want to buy a home and you have gotten your credit report in the best shape possible. Let's say you are getting ready to discuss final interest rate but you still found a few credit dings. Even though you qualify for the loan, the lender may ask you to explain any late payments on your report. This letter will not help a desperate credit situation, but may make a difference in a marginal one. Explaining a couple late payments could mean the difference between a good interest rate and a fair one.\nThe basic premise of this explanation letter is to address:\n*   The situation you were in which caused you to pay late was beyond your control.\n*   You have vowed to never let it happen again.\n*   Here are the things you have done to make sure it doesn't happen.\nOf course, you do not want to just copy this letter. You will need to change the wording of this letter to fit your specific situation. This example letter, and more, are part of our sample letters we have created to help you handle a variety of credit situations. You can also visit our bookstore where you can purchase eBooks on credit repair, debt settlement, and 95 sample letters all available for instant download.\n* * *\nTo Whom it May Concern:\nI am writing this letter to explain my late payments on my (mortgage) to (mortgage company) and to (other creditors) in (insert dates).\nI am very distressed that this has ever happened to me, but I was _<laid off>, <seriously injured>, <going through a death in family>_ . The circumstances drained my carefully put aside savings and I was forced to miss a payment because of it. My financial advisor told me not to tap into my 401K, and I was able to recover from this crisis and begin making on-time payments.\nI have always prided myself in paying on time, and I have taken steps to put away more money in my savings account to guard against other unforeseen occurrences like this.\nSincerely,\n_Your Signature_\n* * * END
 TITLE: Letter Explaining Late Payments When Applying for Credit CONTENT:    |  |  |  | \n: . END
 TITLE: How to File Credit Complaint When Treated Unfairly by Creditor CONTENT: Who to Complain to if You Have Been Treated Unfairly by a Creditor\n------------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 30, 2017_\nStates have a number of consumer protection laws to help those who have been defrauded or treated unfairly by a creditor. Creditors, realizing you are trying to fix your credit, might begin to employ unfair and desperate measures to try to squeeze as much money as they can from you before it is too late. These methods may include harassing phone calls and letters and possibly calling your place of employment or your friends.\nIn order to protect consumers, the Federal Trade Commission (FTC) has enacted numerous laws to help to protect consumers from unfair practices and the Bureau of Consumer Protection conducts investigations, sues companies who violate these laws, develops rules to protect consumers, and educates consumers and businesses about their rights and responsibilities.\nIf you have been treated unfairly by a creditor, here is a listing of the United States regulatory agencies to contact. If you feel that your credit rights have been violated or if you feel that you have been treated unfairly, contact one of these agencies below.\n**Type of Creditor**\n**Who to Contact**\n**National Banks**\nOffice of the Comptroller of the Currency  \nCustomer Assistance Unit  \n1301 McKinney St.  \nSuite 3710  \nHouston, TX 77010  \n(800) 613-6743  \nwww.occ.treas.gov\n**State Member Banks of the Federal Reserve System**\nDivision of Consumer and Community Affairs  \nMail Stop 801  \nFederal Reserve Board  \nWashington, D.C. 20551  \n(202) 452-3693  \nwww.federalreserve.gov\n**Non-Member Federally Insured State Banks**\nFederal Deposit Insurance Corporation  \nOffice of Compliance and Consumer Affairs  \n550 Seventeenth St., N.W.  \nWashington, D.C. 20429  \n(202) 942-3100  \nwww.fdic.gov\n**Savings and Loan Associations**\nOffice of Thrift Supervision  \nConsumer Programs  \n17010 G Street, N.W., 6th Floor  \nWashington, D.C. 20552  \n(202) 906-6237  \nwww.ots.treas.gov\n**Federal Credit Unions**\nNational Credit Union Administration  \nOffice of Public and Congressional Affairs  \n1775 Duke Street  \nAlexandria, VA 22314  \n(703) 518-6330  \nwww.ncua.gov\n**Other Lenders**\nFederal Trade Commission  \nConsumer Response Center  \n600 Pennsylvania Avenue, N.W.  \nWashington, D.C. 20580  \n(202) 326-3758  \nwww.ftc.org END
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 TITLE: Sample Hardship Letter - Need to Restructure Mortgage Loan CONTENT: ###### Written by: Kristy Welsh\nUse this sample hardship letter to ask for a mortgage loan modification. \n-------------------------------------------------------------------------\nBefore a bank will approve a short sale or a loan modification, the bank will want to see a hardship letter. A hardship letter is a document that must be created in your own words. Basically you want to get across to the bank that you did experience a hardship but are looking to resolve the situation with their help. Think back to when you took out the loan and what you life was like then — what is different now? Some examples that may qualify for a hardship:\n*   Unemployment\n*   Reduced income\n*   Illness or medical emergency\n*   Job transfer (voluntary or involuntary)\n*   Divorce, separation or marital difficulties\n*   Exotic mortgage terms, i.e., an adjustable-rate loan\n*   Military service\n*   Death in the family\n*   Incarceration\n*   Increased expenses and excessive debt\n*   Unexpected repairs or home maintenance\nIn your hardship letter, you want to explain 3 things:\n1.  How you got into your present situation (explain what has changed since you look out the loan)\n2.  What you have done to try to get out of this situation\n3.  Why this situation is permanent and how nothing you can do will change it\nThe following letter is just an example — **DO NOT CUT AND PASTE THIS LETTER**. Your hardship letter need to be in your own words explaining your unique situation. If you need more information on short sales or loan modification,  check out our loan restructuring article. We also have other sample credit repair letters to handle a variety of credit situations. Here is the list.\n* * *\nTo Whom it May Concern:\nI am writing this letter to explain why I am currently facing foreclosure on my mortgage to you.\nI am very distressed that this has ever happened to me, but I was \\[_laid off\\], \\[seriously injured\\], \\[going through a death in family\\]_ . The circumstances drained my carefully put aside savings and in order to provide for my family I was forced to choose between mortgages payments and food. My financial advisor told me not to tap into my 401K.\nThis is a very embarrassing to me, I have always prided myself in paying on time, and I have taken steps to put away money in my savings account to guard against other unforeseen occurrences like this. I guess I just did not put away enough. As a good faith payment, I would be willing to do a partial distribution from my 401K towards the loan restructuring. Staying in my home is very important to myself and my family.\nMy wife and I have sat down together to review our finances and believe we could safely accommodate a payment of $1,875\/month over 30 years should you approve our loan restructuring.\nSincerely,\n_Your Signature_\n* * * END
 TITLE: Sample Hardship Letter - Need to Restructure Mortgage Loan CONTENT:    |  |  |  | \n: . END
 TITLE: Submit a Complaint to the Consumer Financial Protection Bureau CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: August 30, 2017_\nWhen you're having a problem with a financial product or service, who better to complain to than the agency that oversees the industry?\nThe Consumer Financial Protection Bureau (CFPB) not only plays a supervisory role within the financial industry, but also enforces laws, and writes new rules and regulations.\nTo that end, the CFPB not only accepts complaints, but encourages them.\nFirst, they're able to help individuals resolve problems. Second, they're able to get a feel for what are common problems across the industry so as to adjust supervision, enforcement, and new rules and regulations accordingly.\nWhere Do I Submit My Complaint to the CFPB?\n-------------------------------------------\nYou can submit a complaint to the CFPB either online or by phone:\n*   To submit your complaint online, go to the official CFPB website at ConsumerFinance.gov and click on the \"Submit a Complaint\" tab.\n*   To submit your complaint by phone, call 855-411-2372.\n### What Kind of Complaints Does the CFPB Accept?\nThe CFPB accepts complaints about all sorts of financial products or services. When you submit your complaint online, you have the following categories to choose from:\n*   **Mortgages** — problems applying for a mortgage, being approved or denied credit, understanding the loan, making payments, signing the agreement, problems when unable to pay\n*   **Debt collection** — problems with or original creditors or collection agencies\n*   **Credit reporting** — problems with credit bureaus or credit reports\n*   **Banking services** — problems opening an account, accessing money, fees\n*   **Credit cards** — billing disputes, changes to your APR, identity theft, fees\n*   **Money transfers** — problems sending money to someone else or transferring money between two accounts\n*   **Payday loans** — problems with agreements or when you're unable to pay\n*   **Student loans** — problems with private or federal loans or when unable to pay\n*   **Vehicle or other consumer loans** — problems with loan tactics, applying for a loan, making payments, signing the agreement, problems when unable to pay\n### Should I Submit a Dispute of a Credit Report Listing With the CFPB First?\nNo. You should first dispute the listing with the appropriate credit bureau, which may be Experian, TransUnion, or Equifax (or all three if the disputed listing is on all three of your credit reports). If you are not satisfied with the response, dispute the listing directly with the creditor or collection agency. If at this point you do not feel your dispute has been properly investigated and addressed, then submit your complaint to the CFPB. See our step-by-step instructions on how to dispute listings on your credit reports.\n### What Does the CFPB Do With My Complaint?\nOnce the CFPB receives it, your complaint and any supporting documentation is forwarded on to the company for their review. The CFPB also shares complaints with state and federal law enforcement agencies, and sends a complaint report to Congress twice a year. Your complaint may also be posted to the Consumer Complaint Database.\n### What Information is Posted to the Consumer Complaint Database?\nIf your complaint is posted to the Consumer Complaint Database, all personally-identifying information is excluded. The information that does get posted there includes the:\n*   Product or service\n*   Nature of the complaint\n*   Submission method\n*   Company associated with the complaint\n*   Date complaint was received\n*   Company's response to the complaint\n*   Whether the response was timely\n*   Whether the consumer disputed the company's response\n### How Long Does it Take to Receive a Response to my CFPB Complaint?\nOnce the CFPB submits your complaint, the company has 15 days to respond to the CFPB and to you. During this 15-day period, you can expect to receive from the CFPB email updates on your complaint status. You can also check the status online at ConsumerFinance.gov.\n### What if I Disagree with the Response to my CFPB Complaint?\nOnce the company responds to your complaint, the CFPB will forward it on to you for your review. If you disagree with the response, you will have an opportunity at this time to submit a dispute.\n### How Long Does it Take for a CFPB Complaint to be Resolved?\nBarring special circumstances, companies have 60 days total to satisfactorily address and close a complaint.\nHow is the CFPB Different from the FTC?\n---------------------------------------\nBoth the CFPB and the FTC (Federal Trade Commission) are consumer protection agencies. However, while the FTC focuses on consumer protection relative to a variety of consumer issues, the CFPB focuses exclusively on financial products and services. END
 TITLE: Submit a Complaint to the Consumer Financial Protection Bureau CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Submit a Complaint to the Consumer Financial Protection Bureau CONTENT:    |  |  |  | \n: . END
 TITLE: Vehicle Repossession Letter - Dispute Collection Activity CONTENT: ###### Written by: Kristy Welsh\nUse this repossession letter to dispute collection activity. \n-------------------------------------------------------------\nThe following is a sample vehicle repossession letter disputing collection activities associated with a deficiency from a motor vehicle repossession. Send a copy to EACH of these parties - collection agency and original creditor - via Certified Return Receipt Request. It may be used AFTER 2 years from the date of the repo sale, providing there has been no filed claim for a judgment. It should not be used if you have been sued, or if the repossession was less than 2 years ago.\nThis letter is part of our information on our automobile repossession article. We have other sample letters to handle a variety of credit situations. Here is the list.\n* * *\nDate\nYour Name  \nYour Address  \nCity, State Zip\nCollection Dept  \nAddress  \nCity, State Zip\nName of Original Creditor  \nAddress of OC\nName of Original Seller (car dealer)  \nAddress of OS\nRe: Acct # XXXX-XXXX-XXXX-XXXX (collection agency)  \nRe: Acct # XXXX-XXXX-XXXX-XXXX (original creditor)\nMake of car:  \nModel:  \nVIN#\nTo Whom It May Concern:\nI am writing in regard to the above referenced accounts and transactions.\nThis vehicle was repossessed by (Original Creditor) in the State of (Your State) on or about, xx\/xx\/xxxx, and resold on or about xx\/xx\/xxxx.\nUnder the laws of the State of (State where car was repossessed) UCC (Your state's UCC code, you will need to look this up) and State RISA and MVISA statutes a deficiency can not be claimed unless all of the required notices were properly and timely given, and all of the allowable redemption and cure time limits were adhered to.\nPlease provide copies of the legal notices and proof of the commercially reasonable manner of the resale of the subject vehicle.\nIf no such proof is provided within 14 days from receipt of this notice, the alleged claim of a deficiency will be considered null and void, and any continued collection activities, or continued reporting of this invalid claim on my credit reports will be considered a violation of the FDCPA and FCRA.\nIn addition, if you singularly or severally fail to comply with the above requests, I reserve the right to seek damages against all parties, under all available State and Federal statutes and UCC - 9 remedies.\nSincerely,\nYour Signature\n* * * END
 TITLE: ChexSystems Letter to Remove Your Name CONTENT: ChexSystems — Remove Info From ChexSystems Database\n---------------------------------------------------\n###### Written by: Kristy Welsh\nThis sample letter asks to remove inaccurate information from ChexSystems.\n--------------------------------------------------------------------------\nThe following is a sample letter requesting ChexSystems to validate and remove a listing from their database. Make sure to edit this letter and fill in the appropriate information for your situation.\nThis sample letter is part of our information on ChexSystems. This letter is just one our free sample credit repair letters you can use to help handle a variety of credit situations. You can also visit our bookstore where you can purchase eBooks on credit repair, debt settlement and 95 sample letters - all available for instant download.\n* * *\nDate\nYour Name  \nYour Address\nChexSystems, Inc.  \n7805 Hudson Road, Suite 100  \nWoodbury, MN 55125\nTo Whom It May Concern:\nMy bank has informed me that there is negative information reported by (_name of bank_) included in the file ChexSystems maintains under (_you social security number_). Upon ordering a copy of the report, I see an entry from this bank listing a (_fill in negative item listed_).\nPlease validate this information with (_name of bank_) and provide me with copies of any documentation associated with this account. In the absence of any such documentation bearing my signature I ask that this information be immediately deleted from the file you maintain under my Social Security number.\nMy contact information is as follows:\nYour Name  \nSSN: xxx-xx-xxxx  \nYour Address\nSincerely,\n_Your Signature_\n* * * END
 TITLE: ChexSystems Letter to Remove Your Name CONTENT:    |  |  |  | \n: . END
 TITLE: Remove Collection From Your Credit Report CONTENT: How to Remove Debt Collections From Your Credit\n-----------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 21, 2017_\nHaving a collection on your credit report can really hurt your credit score. Even though a collection will hurt you less as it gets older, the entry will remain on your credit report for **_seven_** years.\nThat being said, you don't have to be afraid of a collection or having to deal with the collection agency. If you have recently reviewed your credit reports only to discover your delinquent accounts have been sold to a collection company, fear not. In actuality, collections are one of the easiest items to repair on your credit report.\nGenerally speaking, collection agencies keep poor records and are not actually authorized or licensed to collect on the debt. As a result of the shaky status of collection accounts, there are many techniques you can use to attack the collection agency and eventually get that collection record off your credit report. Here are the top five techniques we recommend.\nPay for the Collection to be Deleted\n------------------------------------\nThis situation is best for small collection amounts, $500 or less, like medical collections or utility bills. You get the collection agency to agree to remove the listing from your credit report, if you pay the total debt amount. This is a very successful technique. To learn how to use this technique, read our article Use the Pay for Delete Method for Removing Collections.\nSettle the Debt\n---------------\nThis technique is much like the pay for delete method, except this method deals with collection amounts that are over $1,000. This method involves more negotiating with the collections agency to reduce the amount of the debt to an amount that you will be able to pay in one lump sum. Like the pay for delete method, as part of the settlement agreement, you get the collection agency to agree to remove the listing from your credit report. To read up on the expanded version of this technique, read our article covering settling your debts.\nUse Debt Validation\n-------------------\nThis method involves leveraging the protections of the Fair Debt Collection Practices Act to force the collection agency to provide documentation that the debt is valid. It's one of the more aggressive techniques against the collection agency. It involves writing a letter to the collection agency, but if the collection agency is non responsive, it requires the threat of filing a lawsuit. To get more information on this technique, read our article which discusses the debt validation method.\n623 Dispute with the Original Creditor\n--------------------------------------\nThis method involves leveraging the protections of section 623 of the Fair Credit Reporting Act, which allows consumers to dispute a negative listing directly with the company reporting it on your credit report. The consumer merely requests an investigation of the account, and is required by law to respond within 30 days. In order to use this technique, you must have first disputed the negative information on your credit report with the credit bureaus. This is actually a very effective technique, especially since the collection agencies will not have any documentation to back up their reporting. To read up on the expanded version of this technique, read our article about disputing listing with original creditor.\nDispute with the Credit Bureaus\n-------------------------------\nThis method is the basic credit repair technique of writing letters to the credit bureaus to request an investigation of a collection on your credit report. It's basic credit repair 101. To read up on the expanded version of this technique, check out our credit repair articles.\nNow you have five methods to use when trying to remove a collection from your credit report. Remember that anything a credit repair company can do for you, you can do for free. But, if you feel overwhelmed with the credit repair process, we highly recommend Lexington Law as a top notch credit repair service. END
 TITLE: How to Sue Your Creditors or Collection Agencies CONTENT: How to Sue Your Creditors in Small Claims Court\n-----------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 8, 2017_\nDid you know you can sue a creditor or a credit bureau for violating the Fair Debt Collection Practices Act? Violations happen all the time to unsuspecting consumers who don't have a clue as to what their rights are — let alone that they can sue someone for these violations.\nConsumers are being hurt all the time by the carelessness of creditors and unethical practices of collection agencies and credit bureaus. By pointing out these violations, you can make them back down and remove negative entries. You can fight back! The law specifically allows you can take these people to court and win money. Wouldn't you like to use the money you win from your creditors to pay off your debts?\nSuing a Creditor or Credit Bureau in Small Claims Court\n-------------------------------------------------------\nMost companies are not going to change their ways unless it is in their best interest to do so. All of these companies have stockholders to report to, so if one of their practices is costing them a better bottom line, you better believe they will act to change their ways. One of these ways is for you the consumer, to take action legally against these companies when your rights have been violated.\nEach violation can be a $1,000 fine, so it's money in your pocket. In addition, you are going to help make someone else's life better by suing someone who has broken the law. If everyone took action when their rights were violated, the credit bureaus would lose a fortune in legal disputes. It's time to protect your rights as a consumer as well as protecting the rights of your fellow United States citizens.\nWho Can You Sue and What Can You Sue For?\n-----------------------------------------\n**Who**\n**Why**\n**Law**\n**Fine**\nCreditors, if they report your credit history inaccurately.\nDefamation, financial injury\nUS Court of Appeals, Ninth Circuit, No. 00-15946, Nelson vs. Chase Manhattan\nExtent of damages incurred by the wronged party as deemed by the courts.\nCreditors, if you dispute a debt, and they fail to report it as disputed to the credit bureaus.\nProtection under the FCRA\nFCRA Section 623\n$1,000\nCreditors, if they pull your credit file without permissible purpose.\nInjury to your credit report and credit score\nFCRA Section 604(A)(3)\n$1,000\nCredit bureaus, if they refuse to correct information after being provided proof.\nDefamation, willful injury\nFCRA Section 623  \nCUSHMAN, v. TRANS UNION CORPORATION US Court of Appeals for the Third Circuit Court Case 115 F.3d 220  \nJune 9, 1997, Filed  (D.C. No. 95-cv-01743).\nExtent of damages incurred by the wronged party, as deemed by the courts.\nCredit bureaus, if they reinsert a removed item from your credit report without notifying you in writing within 5 business days.\nConsumer protection afforded by the FCRA\nFCRA Part (A)(5)(B)(ii)\n$1,000\nCredit bureaus, if they fail to respond to your written disputes within 30 days (a 15 day extension may be granted if they receive information from the creditor within the first 30 days).\nConsumer protection afforded by the FCRA\nFCRA Section 611 Part (A)(1)\n$1,000\nCollection agency, can NOT be BOTH purchaser and assignee - it's one or the other\nProtection under the FDCPA\nGearing v. Check Brokerage Corp  \n233 F.3d 469 (7th Cir. 2000)\n$1,000\nMisrepresentations by the collector about themselves or the debt are actionable regardless of intent.\nProtection under the FDCPA\nGearing v. Check Brokerage Corp  \nCacace v. Lucas, 775 F. Supp. 502, 505 (D. Conn. 1990)\n$1,000\nCreditors, collection agencies, or credit bureaus, if they try and \"Re-Age\" your account by updating the date of last activity on your credit report in the hopes of keeping negative information on your account longer.\nConsumer protection afforded by the FCRA\nFCRA Section 605(c)\n$1,000\nCollection agency, if they fail to report a disputed debt to the credit bureaus.\nProtection under the FDCPA\nFDCPA Section 807(8)\n$1,000\nCollection agency, if they do not validate your debt yet continue to pursue collection activity by filing for a judgment, call or write you.\nConsumer protection afforded by the FDCPA\nFDCPA Section 809(b), FTC opinion letter _Cass from LeFevre_ .\n$1,000\nCollection agency, if you have sent them a cease and desist letter and they still call you.\nConsumer protection afforded by the FDCPA\nFDCPA Section 805(c)\n$1,000\nCollection agency, if they have not validated your debt and they still continue to report to the credit bureaus.\nConsumer protection afforded by the FDCPA\nFDCPA Section 809(b) FTC opinion letter _Cass from LeFevre_\n$1,000\nCollection agency, if they:\n*   Cash a post-dated check before the date on the check.\n*   Cost you money by making you accept collect calls or COD mail.\n*   Take or threaten to take any personal property without a judgment.\nConsumer protection afforded by the FDCPA\nFDCPA Section 808\n$1,000\nCollector, if they call you after 9 PM at night or before 8 AM.\nConsumer protection afforded by the FDCPA\nFDCPA Section 805(a)(1)\n$1,000\nCollector, if they call you at work.\nConsumer protection afforded by the FDCPA\nFDCPA Section 805(a)(3)\n$1,000\nCollector, if they call any third part about your debt like friends, neighbors, relatives, etc. They can contact your attorney, a consumer reporting agency, the creditor, the attorney of the creditor, or the attorney of the debt collector.\nConsumer protection afforded by the FDCPA\nFDCPA Section 805(b)\n$1,000\nCollection agency, if they use any kind of harassment or abuse\\*\\*\nConsumer protection afforded by the FDCPA\nFDCPA Section 806\n$1,000\nCollector cannot claim to garnish your wages, seize property or have you arrested \\*\\*\\*\nConsumer protection afforded by the FDCPA\nFDCPA Section 807\n$1,000\nCollector must be in the county in which you lived when you signed the original contract for the debt or where you live at the time when they file the lawsuit.\nConsumer protection afforded by the FDCPA\nFDCPA Section 811(a)(2)\n$1,000\n\\*\\* (1) The use or threat of use of violence or other criminal means to harm the physical person, reputation, or property of any person. (2) The use of obscene or profane language or language the natural consequence of which is to abuse the hearer or reader. (3) The publication of a list of consumers who allegedly refuse to pay debts, except to a consumer reporting (4) The advertisement for sale of any debt to coerce payment of the debt. (5) Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously with intent to annoy, abuse, or harass any person at the called number. (6) Placement of telephone calls without meaningful disclosure of the caller's identity.\n\\*\\*\\*If the collection agency get a judgment against you, then they will be able to garnish your wages and seize property, but until that time, no. END
 TITLE: How to Sue Your Creditors or Collection Agencies CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: How to Remove Credit Inquiries From Your Credit Report CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: March 21, 2017_\nCredit inquiries are a hot topic in credit repair these days as it is widely known that it is possible to remove them from your credit reports. As you review your credit report, you will notice a section at the end of the report called \"Credit Inquiries\" or \"Regular Inquiries.\" These inquiries were made by companies who pulled your credit report, and these inquiries will remain on your credit report for **two years**. You may not recognize their names — and you may have no idea why they pulled your credit — so it may seem a bit unnerving. Fear not. We will show you how to remove unauthorized credit inquiries from your credit reports. And, we will let you know which credit inquires hurt your credit score and which ones don't.\nIs it Important to Remove Credit Inquiries?\n-------------------------------------------\nMany people tend to overfocus on removing inquiries when their reports are full of late payments, collection accounts, or even a foreclosure. In these cases, you might want to hold off on your efforts to remove inquiries until after you have successfully removed some of the bigger problems on your credit report. But, if you are tackling your other credit issues, it doesn't hurt to tackle this problem, too. On a scale from 1 to 10, with 10 being the worst thing on your report, credit inquiries are a mere 1 on the problem scale.\nWhat is a Credit Inquiry?\n-------------------------\nEvery time you apply for credit and the credit grantor does a credit check on you, a credit inquiry is placed on your file. Even if you receive a credit card offer in the mail and you respond, your credit will almost certainly be checked and a credit inquiry will be added to your credit report.\nType of Credit Inquiry\n----------------------\n*   **A hard inquiry** occurs when you applied for new credit, like a credit card, or submit a loan application for a car or home. A hard inquiry **can** affect your credit score.\n*   **A soft inquiry** occurs when an existing creditor pulls your credit to see what your current credit situation is or when a potential creditor pulls your credit to pre-approve you for credit that you have not actually applied for yet. Pulling your own credit is also considered a soft inquiry. A soft credit inquiry **does not** affect your credit score.\nWill Too Many Credit Inquiries Affect Your Credit Score?\n--------------------------------------------------------\n*   Hard credit inquiries are bad because too many of them can indicate to a creditor that you're \"credit hungry\" and may be in financial trouble.\n*   Worse yet, the creditor has reason to believe that you received many of the credit lines that are showing as inquiries, and that many of those credit lines have not yet appeared on your credit report.\n*   Too many recent inquiries indicate to a potential credit grantor that your debt-to-income ratio may be much higher than you say.\nYou can read our full article on how inquiries impact your credit score.\nStep-by-Step Procedure for Removing a Credit Inquiry\n----------------------------------------------------\nAll credit inquiries should come off your credit report after two years. _And only hard inquiries made within the past 12 months will be included in your credit score._ If you're not willing to wait, you may take these steps:\n**Step 1**  \nFirst, find out which credit inquiries are getting in your way by ordering all three of your credit reports. When your reports arrive, look toward the end of your credit report to find the inquiries. Some of the inquiries are only promotional and will not be shown to prospective credit grantors. You need not worry about those. Identify only the inquiries that are shown to credit grantors (i.e., hard inquiries). You should recognize some of these as places where you applied for credit, but others may be a complete mystery to you.\n**Step 2**  \nFind the address for each creditor. Experian will list addresses for each but TransUnion and Equifax reports will not. Match your Experian with your TransUnion and Equifax reports. You should be able to use the same addresses on the inquirers that are listed on Experian. If some of the inquirers don't show up on Experian but do show up on either TransUnion or Equifax, you will have to call the credit bureau to get their address. It is almost impossible to get a live person on the telephone at TransUnion, but Equifax has an 800 number listed at the top of their reports. If you have an inquirer listed on your TransUnion report and you can't reach them by phone, you might try calling the 800 directory and request the 800 number for the inquiring creditor.\nOnce you have collected all of the addresses for each inquiring creditor on each credit report, you are ready for the next step.\n**Step 3**  \nPrepare letters to each inquiring creditor asking them to remove their inquiry. The Fair Credit Reporting Act allows only authorized inquiries to appear on the consumer credit report. You must challenge whether the inquiring creditor had proper authorization to pull your credit file.\nUse our sample letter to remove inquiries.\n**Step 4**  \nSome of your creditors may provide documentation that a credit inquiry was authorized by you. Read the authorization that you signed very carefully. If there is any ambiguity, you can write back and argue that the inquirer's authorization form was too complicated and not easily understood by the layman. You can threaten to contact the State Banking Commission and complain about a deceptive and unclear authorization form if they don't remove the inquiry.\nSome creditors will try to ignore your challenge. Be sure to send each letter Certified Mail Return Receipt Requested and keep close track of the time that you sent the letter. If the inquiring creditor doesn't respond within about 30 days, you will have ample grounds to call the inquiring creditor and demand some action. At that point, it's almost irrelevant whether or not you authorized the inquiry. Now the issue becomes the creditor's lack of response to a consumer dispute. Be sure to hold your ground. Demand that the inquiry be removed immediately or you will complain to the State Banking Commission or similar authorities.\nMany of your inquiring creditors may simply agree to delete the inquiry as a courtesy or because they cannot, or will not, verify your authorization. That's the goal. Remember, it is not likely that you will need all of your credit inquiries removed, just enough of them to increase your credit score. END
 TITLE: Remove a Judgment From Your Credit CONTENT: How to Remove a Judgment From Credit Reports\n--------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 30, 2017_\nHaving a judgment on your credit report is right up there with loan defaults and repossessions as one of the biggest hits to your credit score. The two worse items to affect your score is a foreclosure and a bankruptcy. You can see why removing a judgment from your credit is a big deal when it comes to repairing your credit. But, erasing a judgment is not that easy and it will take a bit of effort on your part. That is not to say it is impossible. Just be forewarned it is not as easy as removing a credit inquiry or a late payment from your credit history.\nIn this article we have tried to simplify the steps you will need to take to get a judgment removed. As with any credit repair procedure, you can do this yourself. But, if you feel this may be too much of a daunting task, we highly recommend Lexington Law Group for credit repairs and removing negative items from your credit report.\nHow Do Judgments Get on a Credit Report?\n----------------------------------------\nBefore we start into how to remove a judgment from your credit report, we need to understand how it got there in the first place. To put it simply, a judgment is a piece of paper signed by a judge that says you owe a debt. It all started by someone filing a lawsuit against you for the debt. You should have received a Summons telling you when to show up to court to defend yourself. So, if you did not attend the hearing, a default judgment was rendered against you. If you did go to the hearing and you lost the case, this resulted in a judgment being recorded against you.\nCredit reporting agencies, such as Experian, Equifax, and TransUnion, obtain their information directly from the courts. These agencies use a myriad of outside vendors to collect information on people and one of them is most certainly tied into the court system to see when judgments are recorded. Most recorded judgments will remain on your credit file for 10 years. The judgment can be renewed if the creditor elects to renew the judgment every 10 years.\nThree Ways to Deal with a Judgment\n----------------------------------\nIf you recently pulled your credit report to find a judgment listed, there are three ways to deal with it. A judgment won't guarantee the creditor will be paid because he still has to hunt for your bank accounts and assets. Besides the obvious negative consequence of a judgment, which is a lower credit score, you also have the added stress of worrying about the day that creditor will come after you and seize your money.\nHere are the three ways to deal with a judgment:\n1.  Dismiss and\/or dispute the judgment.\n2.  Vacate the judgment.\n3.  Remove the judgment from your credit report.\nWe have already written articles relating to dismissing a judgment and vacating a judgment. So, in this article, we are going to go through the steps to remove a judgment from your credit repor\nNot only will there be a judgment on your credit report, but there is also a negative trade line from the original creditor causing a double ding to your credit score. Read over each credit report carefully because what Experian might report may be different from what TransUnion is reporting. You will need to handle each credit reporting agency separately and tailor your plan of attack to fit what each agencies is reporting in your credit history.\nNow that you have a current credit report and you have a list of what each report agency has listed in your history, here are the three scenarios to follow. Remember, you are going to mail each bureau a dispute letter and you are going to mail it to them certified\/return receipt requested. Each bureau will have 30 days to investigate your dispute and will either send you a letter that they verified the information or they will have to remove the judgment from your credit report. Here are the three scenarios to use in your dispute letters:\n*   **The Debt Belongs to Someone Else.**  Although this may be the most unlikely one, since a local court issued the judgment, you can challenge it to make sure the court did not make a mistake. Perhaps the case numbers don't match up between the credit bureau and the court house. Or, maybe the real debtor is a relative or another person with a similar name. Remember, you are asking each bureau to verify this information in 30 days or they will have to remove it.\n*   **The Debt is Already Paid.**  Again, you are going to write a letter to each agency advising them this debt has been paid. They in turn will have to verify the information in the allotted 30 days time period or they will have to remove it from your credit report.\n*   **The Debt is Old.**  You need to determine if the Statue of Limitations has run according to your state's laws. Use our handy-dandy Statute of Limitations for Judgments table to look up your state. Another way to remove an old judgment is to see if the judgment creditor passed away or went out of business. If that is the case, the credit bureaus will not be able to verify the judgment and they will have to remove it.\nThere are also a few other instances where a judgment can be removed. If you were serving in the military over seas, you never should have been sued under the Soldiers and Sailors Act. Or maybe you were on SSI (social security income) or permanently disabled. Consider the angles to determine if the judgment should and can be removed from your credit file.\nThe bottom line is, if you are sued, never let a default judgment be recorded. If you find yourself served with a Summons and Complaint from a creditor, you have nothing to lose by disputing the validity of debt or maybe settling it out of court. Just ignoring the Summons will only give the creditor the win and you will be the ultimate loser with the damage the judgment will do to your credit. More often than not, if you call their bluff and make them prove their claim, they just might go away. END
 TITLE: Remove a Judgment From Your Credit CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Remove a Judgment From Your Credit CONTENT:    |  |  |  | \n: . END
 TITLE: State Attorney Generals - State by State Listing of SAG's CONTENT: State Attorney General Information\n----------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 17, 2021_\nYour local state attorney general's office is your best friend when it comes to areas of credit repair issues. They can advise you on all matters of law, tell you what paperwork you need, help you find affordable representation, cite legal precedence’s pertinent to your state, and get you in touch with the consumer protection agency. As a matter of fact, the attorney general shares his or her office with the state consumer protection agency. Give your attorney general's office a call whenever you don't know the answer to a legal question, especially about state banking laws, divorce, bankruptcy, and what action to take if a creditor does not treat you fairly.\n**State**\n**Attorney General**\n**Phone**\n* * *\nAlabama:\nSteve Marshall\n(334) 242-7300\n500 Dexter Avenue, Montgomery, AL 36130  \nwww.ago.alabama.gov\n* * *\nAlaska:\nTreg R. Taylor\n(907) 296-5100\nP.O. Box 110300, Juneau, AK 99811-0300  \nwww.law.alaska.gov\n* * *\nArizona:\nMark Brnovich\n(602) 542-4266\n1275 W. Washington St., Phoenix, AZ 85007  \nwww.azag.gov\n* * *\nArkansas:\nLeslie Rutledge\n(800) 482-8982\n200 Tower Bldg., 323 Center St., Little Rock, AR 72201-2610  \nwww.arkansasag.gov\n* * *\nCalifornia:\nXavier Beccera\n(916) 445-9555\n1300 I St., Ste. 1740, Sacramento, CA 95814  \noag.ca.gov\n* * *\nColorado:\nPhil Weiser\n(720) 508-6000\n1300 Broadway, 10th Floor, Denver, CO 80203  \ncoag.gov\n* * *\nConnecticut:\nWilliam Tong\n(860) 808-5318\n55 Elm St., Hartford, CT 06141-0120  \nwww.portal.ct.gov\/ag\n* * *\nDelaware:\nKathy Jennings\n(302) 577-8338\nCarvel State Office Bldg., 820 N. French St., Wilmington, DE 19801  \nwww.attorneygeneral.delaware.gov\n* * *\nDistrict of Columbia:\nKarl A. Racine\n(202) 727-3400\nJohn A. Wilson Building, 1350 PA Ave, NW Suite 409, Washington, DC 20009  \noag.dc.gov\n* * *\nFlorida:\nAshley Moody\n(850) 414-3300\nThe Capitol, PL 01, Tallahassee, FL 32399-1050  \nmyfloridalegal.com\n* * *\nGeorgia:\nChristopher M. Carr\n(404) 656-3300\n40 Capitol Square, SW, Atlanta, GA 30334-1300  \nlaw.georgia.gov\n* * *\nHawaii:\nClare E. Connors\n(808) 586-1500\n425 Queen St., Honolulu, HI 96813  \nag.hawaii.gov\n* * *\nIdaho:\nLawrence G. Wasden\n(208) 334-2400\nStatehouse, Boise, ID 83720-1000  \nag.idaho.gov\n* * *\nIllinois:\nKwame Raoul\n(312) 814-3000\nJames R. Thompson Ctr., 100 W. Randolph St., Chicago, IL 60601  \nwww.illinoisattorneygeneral.gov\n* * *\nIndiana:\nTodd Rokita\n(317) 232-6201\nIndiana Government Center South - 5th Floor, 402 West Washington Street, Indianapolis, IN 46204  \nwww.in.gov\/attorneygeneral\n* * *\nIowa:\nTom Miller\n(515) 281-5164\nHoover State Office Bldg., 1305 E. Walnut, Des Moines, IA 50319  \nwww.IowaAttorneyGeneral.gov\n* * *\nKansas:\nDerek Schmidt\n(785) 296-2215\n120 S.W. 10th Ave., 2nd Fl., Topeka, KS 66612-1597  \nag.ks.gov\n* * *\nKentucky:\nDaniel Jay Cameron\n(502) 696-5300\nState Capitol, Rm. 116, Frankfort, KY 40601  \nag.ky.gov\n* * *\nLouisiana:\nJeff Landry\n(225)-326-6000\nP.O. Box 94095, Baton Rouge, LA 70804-4095  \nwww.ag.state.la.us\n* * *\nMaine:\nAaron Frey\n(207) 626-8800\nState House Station 6, Augusta, ME 04333  \nwww.maine.gov\/ag\/\n* * *\nMaryland:\nBrian E. Frosh\n(410) 576-6300\n200 St. Paul Place, Baltimore, MD 21202-2202  \nwww.marylandattorneygeneral.gov\n* * *\nMassachusetts:\nMaura Healey\n(617) 727-2200\n1 Ashburton Place, Boston, MA 02108-1698  \nwww.mass.gov\/ago\/\n* * *\nMichigan:\nDana Nessel\n(517) 373-1110\nP.O.Box 30212, 525 W. Ottawa St., Lansing, MI 48909-0212  \nwww.michigan.gov\/ag\n* * *\nMinnesota:\nKeith Ellison\n(651) 296-3353\nState Capitol, Ste. 102, St. Paul, MN 55155  \nwww.ag.state.mn.us\n* * *\nMississippi:\nLynn Fitch\n(601) 359-3680\nDepartment of Justice, P.O. Box 220, Jackson, MS 37205-0220  \nwww.ago.state.ms.us\n* * *\nMissouri:\nEric Schmidt\n(573) 751-3321\nSupreme Ct. Bldg., 207 W. High St., Jefferson City, MO 65101  \nago.mo.gov\n* * *\nMontana:\nAustin Knudsen\n(406) 444-2026\nJustice Bldg., 215 N. Sanders, Helena, MT 59620-1401  \nwww.dojmt.gov\/agooffice\/\n* * *\nNebraska:\nDouglas Peterson\n(402) 471-2682\nState Capitol, P.O.Box 98920, Lincoln, NE 68509-8920  \nwww.ago.nebraska.gov\n* * *\nNevada:\nAaron Ford\n(775) 684-1100\nOld Supreme Ct. Bldg., 100 N. Carson St., Carson City, NV 89701  \nag.nv.gov\n* * *\nNew Hampshire:\nGordon MacDonald\n(603) 271-3658\nState House Annex, 33 Capitol St., Concord, NH 03301-6397  \nwww.doj.nh.gov\n* * *\nNew Jersey:\nGurbir S. Grewal\n(609) 292-8740\nRichard J. Hughes Justice Complex, 25 Market St., CN 080, Trenton, NJ 08625  \nnjoag.gov\/\n* * *\nNew Mexico:\nHector Balderas\n(505) 827-6000\nP.O. Drawer 1508, Sante Fe, NM 87504-1508  \nwww.nmag.gov\n* * *\nNew York:\nLetitia James\n(518) 474-7330\nDept. of Law - The Capitol, 2nd fl., Albany, NY 12224  \nwww.ag.ny.gov\n* * *\nNorth Carolina:\nJosh Stein\n(919) 716-6400\nDept. of Justice, P.O.Box 629, Raleigh, NC 27602-0629  \nwww.ncdoj.gov\n* * *\nNorth Dakota:\nWayne Stenehjem\n(701) 328-2210\nState Capitol, 600 E. Boulevard Ave., Bismarck, ND 58505-0040  \nattorneygeneral.nd.gov\n* * *\nOhio:\nDavid Yost\n(614) 466-4320\nState Office Tower, 30 E. Broad St., Columbus, OH 43215  \nwww.ohioattorneygeneral.gov\n* * *\nOklahoma:\nMike Hunter\n(405) 521-3921\nState Capitol, Rm. 112, 2300 N. Lincoln Blvd., Oklahoma City, OK 73105  \nok.gov\/oag\n* * *\nOregon:\nEllen F. Rosenblum\n(503) 378-4732\nJustice Bldg., 1162 Court St., NE, Salem, OR 97301  \nwww.doj.state.or.us\n* * *\nPennsylvania:\nJosh Shapiro\n(717) 787-3391\n1600 Strawberry Square, Harrisburg, PA 17120  \nwww.attorneygeneral.gov\n* * *\nRhode Island:\nPeter F. Neronha\n(401) 274-4400\n150 S. Main St., Providence, RI 02903  \nwww.riag.state.ri.us\n* * *\nSouth Carolina:\nAlan Wilson\n(803) 734-3970\nRembert C. Dennis Office Bldg., P.O.Box 11549, Columbia, SC 29211-1549  \nwww.scag.gov\n* * *\nSouth Dakota:\nJason Ravnsborg\n(605) 773-3215\n1302 East Highway 14, Suite 1, Pierre, SD 57501-8501  \natd.sd.gov\n* * *\nTennessee:\nHerbert H. Slatery, III\n(615) 741-5860\n500 Charlotte Ave., Nashville, TN 37243  \nwww.tn.gov\/attorneygeneral\/\n* * *\nTexas:\nKen Paxton\n(512) 463-2100\nCapitol Station, P.O.Box 12548, Austin, TX 78711-2548  \ntexasattorneygeneral.gov\n* * *\nUtah:\nSean D. Reyes\n(801) 538-9600\nState Capitol, Rm. 236, Salt Lake City, UT 84114-0810  \nattorneygeneral.utah.gov\n* * *\nVermont:\nTJ Donovan\n(802) 828-3173\n109 State St., Montpelier, VT 05609-1001  \nago.vermont.gov\/\n* * *\nVirginia:\nMark R. Herring\n(804) 786-2071\n900 E. Main St., Richmond, VA 23219  \nwww.oag.state.va.us\n* * *\nWashington:\nBob Ferguson\n(360) 753-6200\n900 Fourth Street, Suite 2000, Olympia, WA 98504-0100  \nwww.atg.wa.gov\n* * *\nWest Virginia:\nPatrick Morrisey\n(304) 558-2021\nState Capitol, 1900 Kanawha Blvd. , E., Charleston, WV 25305  \nago.wv.gov\n* * *\nWisconsin:\nDavid F. Bowen\n(608) 266-1221\nState Capitol, Ste. 114 E., P.O.Box 7857, Madison, WI 53707-7857  \nwww.doj.state.wi.us\n* * *\nWyoming:\nBridget Hill\n(307) 777-7841\nState Capitol Bldg., Cheyenne, WY 82002  \nag.wyo.gov END
 TITLE: State Attorney Generals - State by State Listing of SAG's CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Try to Keep Medical Collections Off Your Credit Report CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: March 30, 2017_\nCollections of any sort are not good for your credit, but a medical collection can be particularly harmful. The possibility of repairing your credit and removing a medical collection is not as straight-forward as removing a credit card collection. Once it's on your report as in collection status, medical debt is probably there to stay for a good seven years, even if you manage to pay it off before then. Bottom line, the best way to keep a medical collection off your credit is to find a workable way to pay the debt via some sort of compromise with your medical providers.\nIs It Possible to Negotiate Medical Bills With Hospitals and Doctors?\n---------------------------------------------------------------------\nYes, but you want to do so immediately, as soon as you receive the medical bill in the mail. Contact the billing department and explain to them you would like to settle the bill but you cannot afford to do so at the full billed amount. Start by asking for a discount, which can prove to be a particularly successful tactic if you are able to offer to pay the full discounted amount immediately. It has been shown that forty percent of people who ask medical providers for discounts receive them. However, if you are unable to secure a discount, ask for a payment plan, which you are more than likely to receive.\nWhen is Medical Debt Turned Over to Collection Agencies?\n--------------------------------------------------------\nTypically, hospitals and physician groups turn your debt over to a collection agency 60 to 90 days after the debt is past due.\nHow Long Do Medical Debt Collections Stay On My Credit Report?\n--------------------------------------------------------------\nMedical debt may stay on your credit report for as long as seven years, even after they are paid in full. It is the most common collection item on credit reports, with paid-off listings currently staining the credit of more than three million Americans. What's especially heartbreaking about this statistic is that most of these collection items are for debt not much more than a couple of hundred dollars. Good news is the newest scoring model, FICO 9, will weigh medical bills in collections less heavily than other types of unpaid accounts.\nCan I Remove a Medical Collection Listing Via Debt Validation?\n--------------------------------------------------------------\nWhile you can certainly try, debt validation rarely works in this case, as collectors keep much better records for medical collections than credit card debt, for example. In other words, collectors likely have all the documentation they need to prove you owe the debt, including the original creditor, debt amount, etc. For this reason, it is imperative that you deal with medical debt before it goes to collections. You will probably be pleasantly surprised at how helpful medical providers can be about working with you for a resolution, which ultimately serves the best interest of all involved. END
 TITLE: Try to Keep Medical Collections Off Your Credit Report CONTENT:    |  |  |  | \n: . END
 TITLE: How to Remove a Credit Dispute From Credit Report CONTENT: How to Remove a Disputed Account From Your Credit Report\n--------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 30, 2017_\nOne piece of the credit repair process is to dispute any erroneous and\/or inaccurate information found on your credit report with the credit reporting agencies. Let's say you reviewed your credit reports and you see there is an account marked with a late payment but you are sure you paid this account on time, all the time. You mail a letter to the reporting credit bureau disputing this late payment. After 30 days, you get a letter saying they are investigating and now the account is marked \"Dispute Status\" on your report. This can be a bad thing if you are trying to apply for a mortgage or any type of credit. Learn why having a disputed account on your credit report can hurt you and what to do about getting it removed.\nWhy is it Bad to Have an Account Showing a Disputed Status?\n-----------------------------------------------------------\nLet's say you are getting ready to buy a house and you are reviewing your credit reports to see if there is anything negative on them. But low and behold, you see an account (or two) with inaccurate information and this is lowering your credit score. So you do what we have been preaching to you to do and you mail a dispute letter to the bureaus.\nIf you dispute an account with your creditor, a lender may not like seeing that on your credit report. In fact, lenders feel this shows a potential for future liabilities that may impact your ability to repay the debt, such as a mortgage. It may seem unfair to think if you feel you have a genuine dispute on an account that this could prevent you from getting a mortgage or any other type of loan. \nSo, if you do have a disputed account on your credit report, be prepared to submit a letter of explanation and\/or documentation to the lender supporting why this account is in dispute. But doing that is no guarantee they will overlook this dispute and grant approval on your loan. Chances are your loan will be denied.\nWhy You Want to Dispute an Account in the First Place\n-----------------------------------------------------\nLet's tackle _**when**_ you should dispute an account in the first place and this takes some planning ahead. If you are in the very early phases of buying a home, we suggest you pull your credit at least 6 months prior to actually applying for a loan. Let's say you are renting an apartment and your lease it up in 6 moths or so. You and your partner are thinking about buying a home when your lease is up and you are just starting to look at homes that are on the market. It is at this time you should pull your credit and see what is on there and dispute any negative items. Doing it this far in advance will give you plenty of time to mail out dispute letters and resolve any outstanding issues that may arise well before you actually put pen to paper and apply for a loan.\n**_Why_** you will want to dispute an account on your report is if you disagree with the accuracy of the information listed. Reasons for inaccuracy may include:\n*   Incorrect balance listed \n*   Interest rate is incorrect\n*   Late payments listed that were not late\nYou may also need to dispute information on your credit report if you were a victim of identity theft or fraud. In those circumstances, you will want to dispute any and all credit accounts that were fraudulently opened or unauthorized credit inquiries.\nHow to Get a Dispute Status Off Your Credit Report\n--------------------------------------------------\nThe following tips can be used to get a dispute status off of your credit report. The best case scenario is that you have a few months to take care of this, but if you need to get this done in a hurry, these tricks will work, too. Make sure you acquire all three credit reports to verify if the dispute is showing on all the bureaus or just one or two of them.\nIf the disputed account is showing on your TransUnion report, you can call them directly at 800-916-8800 to request a customer-initiated dispute be removed and they will do it immediately.\nAt Equifax, you will need to write to Equifax Consumer Services LLC, P.O. Box 740256, Atlanta, GA 30374-0256, requesting that the dispute be removed from your report.\nAs for Experian, they state the dispute should fall off a credit report automatically once the dispute is resolved. In this instance, they said, you would be entitled to an extra free report because the loan has been delayed by the dispute statement. Go to www.experian.com\/reportaccess and follow instructions to get a free report, indicating that adverse action was taken. If the dispute statement is still there, the free report will show it, and will also provide contact information to get in touch with Experian, if need be.\nLastly, if you have credit accounts in dispute, the best thing to do is to pay it off to remove the dispute. You can contact the creditor directly and negotiate a settlement so that in turn they will remove the disputed status. If you take this approach, make sure the creditor changes the reporting status from \"account in dispute\" to \"no longer reported as disputed.\"\nThe best advise is to not dispute anything just prior to applying for a loan. If possible, avoid disputing any credit accounts other than for theft or fraud reasons. If you do want to dispute information to increase your credit score, make sure you do it at least 6 months prior to applying for a loan. Give yourself enough time to correct the error and get the negative information completely removed from your credit reports before you start applying for a mortgage or some other loan. This way you will have a great credit score and you can go into the transaction knowing your credit is squeaky clean. END
 TITLE: Legal and Illegal Reaging Methods by Collection Agency CONTENT: Legal and Illegal Methods Used to Re-Age an Account\n---------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 30, 2017_\nThere are two types of re-aging when it comes to debt accounts — one is legal and the other is not. With respect to the illegal variety of re-aging accounts, one of the most sinister tactics used by collection agencies is the re-aging of account entries. This is where a collection agency or an original creditor changes the date of last activity or charge-off so that an item stays on your credit report longer than it should. The length something can stay on your credit report or how the date of last activity is calculated is defined in the FCRA.\nHow Does Re-Aging an Account Happen?\n------------------------------------\nThe Fair Credit Reporting Act (FCRA) prohibits delinquent accounts that are charged off or place for collection from being reported to the credit bureaus after 7 years plus 180 days from the date of first delinquency. Collection agencies will knowingly change this cut off date so to pressure a consumer into paying the debt. This is because once that cut off date has come and gone, a collection agency can not legally pursue that person to pay the debt. Also, changing this date keeps this negative information on your credit report longer than permitted by the FCRA Compliance Date.\nRecourse When Your Account Has Been Re-Aged\n-------------------------------------------\nAlthough consumers can not sue the collection agency directly for this violation, they can file a complaint with the FTC and the FTC can sue the collection agency. You need to make sure you are able to document the violation. You will be able to find the removal dates for a negative trade line on your credit reports and you will be able to see the last date of activity for that account. You will then be able to figure out the real removal date by adding 7 years to it. If this date does not match what the collection agency is telling you, you then know something fishy is going on. You can then present all of this information to the FTC and file a complaint against the collection agency for illegal re-aging of that particular account.\nRe-Aging Accounts Legally\n-------------------------\nAn account can be legally re-aged only if the creditor agrees to re-age the account. If the consumer has been unable to pay on the debt due to economic hardship and can now prove to the creditor they are now able to pay, the creditor can agree to wipe out all of the late payments and late fees. In effect, the creditor is agreeing to \"wipe the slate clean\" and give the consumer a second chance.\nRe-Aging Open-End Accounts\n--------------------------\nInstitutions that re-age open-end accounts should establish a reasonable written policy and adhere to it. To be considered for re-aging, an account should exhibit the following:\n*   The borrower has demonstrated a renewed willingness and ability to repay the loan.\n*   The account has existed for at least nine months.\n*   The borrower has made at least three consecutive minimum monthly payments or the equivalent cumulative amount. Funds may not be advanced by the institution for this purpose.\nOpen-end accounts should not be re-aged more than once within any 12-month period and no more than twice within any five-year period. Institutions may adopt a more conservative re-aging standard; for example, some institutions allow only one re-aging in the lifetime of an open-end account. Additionally, an over-limit account may be re-aged at its outstanding balance (including the over-limit balance, interest, and fees), provided that no new credit is extended to the borrower until the balance falls below the pre-delinquency credit limit.\nInstitutions may re-age an account after it enters a workout program, including internal and third-party debt-counseling services, but only after receipt of at least three consecutive minimum monthly payments or the equivalent cumulative amount, as agreed upon under the workout or debt-management program. Re-aging for workout purposes is limited to once in a 5 year period and is in addition to the once in twelve-months\/twice in five-year limitation described above. To be effective, management information systems should track the principal reductions and charge-off history of loans in workout programs by type of program.\nInstitutions should adopt and adhere to explicit standards that control the use of extensions, deferrals, renewals, and rewrites of closed-end loans. The standards should exhibit the following:\n*   The borrower should show a renewed willingness and ability to repay the loan.\n*   The standards should limit the number and frequency of extensions, deferrals, renewals, and rewrites.\n*   Additional advances to finance unpaid interest and fees should be prohibited.\nManagement should ensure that comprehensive and effective risk management, reporting, and internal controls are established and maintained to support the collection process and to ensure timely recognition of losses. To be effective, management information systems should track the subsequent principal reductions and charge-off history of loans that have been granted an extension, deferral, renewal, or rewrite. END
 TITLE: Advantages of Using a Credit Repair Company CONTENT: ###### Written by: Kristy Welsh\n_Byline: Caitlin Moffitt on behalf of Lexington Law Firm_ \nCredit affects so many aspects of life and having good credit may be the deciding factor in getting a loan or not. A credit score may influence a potential employer’s hiring decision, or the landlord’s approval for potential renters.\nAccording to a study published by Lexington Law Firm, \"Of those who have a bad or fair credit score, 30 percent say they are prevented from fixing\/taking action on their credit score because **it is too expensive to fix it.\"**\nHowever, hiring a credit repair law firm to do the work for you may cost far less than most realize — plus having professionals do the tedious work for you may be more beneficial in the long run. For example, paying a monthly fee for credit repair now may save you money when you apply for a new line of credit; a higher credit score may help lower interest rates on a loan or mortgage, helping you save money in the future.\nHere are 4 advantages to using a competent credit repair company such as Lexington Law Firm:\n1.  **They take charge.**  By signing up for credit repair services through a credit repair company like Lexington Law Firm, you’re letting the professionals take charge of working with creditors and credit bureaus on your behalf, to resolve issues.\n2.  **It’s their time — not yours.**  Working on credit repair can be a very long and tedious process. There are many different laws and communications that can be leveraged for each questionable credit report item.  In addition, there are various situations that may require challenging items with the original creditors, collection agencies, credit bureaus, or all three of these. By paying for credit repair, you are giving the professionals the responsibility of reviewing your credit reports, gathering information, drafting letters, following-up, etc. Giving a company the responsibility of repairing your credit allows you to free up your personal time to do other tasks you want or need to do, instead of worrying about reviewing your credit report for inaccuracies.\n3.  **They know the laws.**  Thorough knowledge and understanding of these laws allows credit repair companies to help clients get the credit they deserve. Credit professionals will leverage federal laws to your favor. A professional company is familiar with and compliant to laws such as:\n*   The Fair Credit Reporting Act (FCRA).\n*   The Fair Debt Collections Practices Act (FDCPA).\n*   The Fair Credit Billing Act (FCBA).\n*   And other consumer protection statutes.\n5.  **Monthly fees now, long-term benefits in the future.**  By successfully repairing (and improving) your credit, you may actually reduce the amount of money you need to borrow for a car loan or a mortgage, or the interest rates you’ll pay for items purchased using credit cards. Lenders use a credit score to evaluate what they’ll charge to lend you money or approve you for a line of credit. Allocating funds now to improve your credit may ultimately result in your receiving better interest rates than those who haven’t taken the time to confront their unfair, inaccurate, or unsubstantiated credit reports. In addition, better credit may influence decisions made by prospective employers or landlords.\n\"Credit repair is advantageous because it’s a finite service that provides long-term benefits. Once you have successfully challenged your questionable credit reports, your credit score is likely to improve in turn,\" says Randy Padawer, a consumer psychologist and education specialist who consults for Lexington Law. \"Remember that credit scores depend upon fair and accurate credit reports, and a professional credit repair service may help to ensure that outcome.\" END
 TITLE: Advantages of Using a Credit Repair Company CONTENT:    |  |  |  | \n: . END
 TITLE: How to Find a Reputable Credit Repair Company CONTENT: Finding a Good Credit Repair Company\n------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 21, 2017_\nBased on the fact you are reading this article, we can surmise you have come to this site to find information on credit repair. Money may be tight and you may not have a lot of extra money to pay someone to fix your credit. You have seen the credit repair ads on TV or in local papers telling you to sign up with a credit repair company, but you are on the fence about whether or not to go it alone or hire a credit repair firm. There are credit repair firms out there that are scammers and there are a lot that are legitimate. This article should help point you in the right direction of finding a good credit repair company.\nSo, you have tried your hand at fixing your credit and maybe you have had some success or maybe you are hitting dead ends and roadblocks. We can relate - it takes a lot of patience and perseverance to get the results you may be shooting for. Your patience may be running out and you are now looking to hire a credit repair company to handle this mess for you. The following are some of the benefits of handing this over to a credit repair expert.\n*   A credit repair firm has more resources to handle your disputes.\n*   They know the ins and outs of the rules and regulations governing credit repair procedures.\n*   They are getting paid for results.\n*   You don't have the time to dedicate to fixing your credit and would rather have someone do it for you.\nFinding a Reputable Credit Repair Company\n-----------------------------------------\nNow that you have decided to have someone else repair your credit, how do you go about finding the right company? There are hundreds of companies on the Internet and you have probably seen some of them claim - \"Bad credit? We can help!\" But how do you separate the good from the bad? Here are a few tips.\n*   Contact the BBB to see if the firm has had any consumer complaints filed against them.\n*   Check with your state attorney general's office to see if there are any pending legal investigation against this firm.\n*   Know your rights and be familiar with the guidelines from the Credit Repair Organization Act.\n*   You should receive a contract specifically spelling out their fees, details of service, guarantees they offer, and their physical address and phone number.\nAvoid These Credit Repair Companies\n-----------------------------------\nLet's say for arguments sake, you did not follow our advice in the above section and you just closed your eyes and randomly picked a name out of the phonebook. If any of the following circumstances happen, run away from this firm as fast as you can.\n*   You aren't given a copy of the the \"Consumer Credit File Rights Under State and Federal Law.\"\n*   You aren't given a contract to view prior to signing it.\n*   You are asked for payment upfront before any services are performed.\n*   This company promises to remove \"accurately\" reported information from your report.\n*   They want to create a \"new\" identity for you.\nBenefits of Using a Good Credit Repair Company\n----------------------------------------------\nWe sincerely hope you have taken our advice to heart and now you have made an informed choice on which credit repair company to use. This particular firm checks out with BBB, attorney general's office, and you have talked with this firm on numerous occasions and are comfortable with their business practices. If they are local, you may have even gone to their office to check things out.\nNow it is time for the process to begin. What exactly can you expect from this firm and what type of benefits will you reap from using them to fix your credit? Here are some benefits.\n*   You will get copies of your credit reports and you will go over them with a credit expert who can explain the good and the bad aspects.\n*   You will get a detailed plan of what can be disputed and what other means they may use to remove negative items on your report.\n*   You will get monthly reports on items that have been removed.\n*   You will see an increase in your credit score as these negative items begin to be removed.\nDuring this process of removing these negative items, this credit repair firm should be giving you suggestions on how to build up positive credit via using secured credit cards or taking out a small loan to establish an on-time payment history.\nCredit repair is something you can do yourself, but sometimes life gets in the way. There are a lot of good credit repair companies out there and using one of them can be very beneficial to your financial future. The bottom line, fixing your credit can be a daunting task and it is nice to know there are good firms out there you can trust. A little homework in the beginning will reap rich rewards in the end. END
 TITLE: Credit Repair Company Warnings CONTENT: Tips Before Hiring a Credit Repair Company\n------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 30, 2017  \n_\nThere is no law saying you can't repair your credit on your own. But, if you are too busy or you feel the entire process is a bit overwhelming, there is no shame in wanting to hire someone to do it for you. Before you hire ABC Credit Repair, there are some things you need to be aware of before you sign up for their repair services.\nYou see the advertisements in newspapers, on TV, and on the Internet. You hear them on the radio. You get fliers in the mail. You may even get calls from telemarketers offering credit repair services. They all make the same claims and we are sure you have seen some of the following catchy sales pitches.\n*   Credit problems? No problem!\n*   We can erase your bad credit - 100% guaranteed.\n*   Create a new credit identity, legally.\n*   We can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!\nDoes it all sound too good to be true? Well, **it is**! These are the typical claims of shady credit repair organizations who target the most vulnerable consumers. Consumers who are struggling with bankruptcy or have had problems rebuilding damaged credit reports and credit scores seem to be the people who fall for these fraudulent promises. These companies promise, for a fee, to clean up your credit report so you can get a car loan, a home mortgage, insurance, or even a job. Generally, they can't deliver. After you pay them hundreds or even thousands of dollars in fees, these companies do nothing to improve your credit report. Instead of improving your credit, you may end up deeper in debt and see your credit score actually get worse.\nBeware of Companies Who Make Certain Claims\n-------------------------------------------\nIf you decide to respond to a credit repair offer, beware of companies that are making the following promises or having you do any of the following in their business practices.\n*   Want you to pay for credit repair services before any services are provided.\n*   Do not tell you your legal rights and what you can do, yourself, for free.\n*   Recommend that you not contact a credit bureau directly.\n*   Advise you to dispute all information on your credit report or take any action that seems illegal, such as creating a new credit identity. If you follow illegal advice and commit fraud, you may be subject to prosecution.\nThanks to the Credit Repair Organizations Act, it's a crime for anyone offering credit repair services to require you to pay until a 3-day right of rescission period after they've delivered the services. Also, by law, credit repair organizations must give you a copy of the \"Consumer Credit File Rights Under State and Federal Law\" before you sign a contract. They also must give you a written contract that spells out your rights and obligations.\nWhat to Do if You've had Problems with Credit Repair Companies\n--------------------------------------------------------------\nIf you've been taken advantage of by a credit repair organization, contact the FTC. You can file a complaint at www.ftc.gov or by calling 1-877-FTC-HELP. The FTC can also start administrative proceedings against the credit repair organization and individual states can sue the organizations to stop them from violating the Act and to recover damages you may have suffered. Although the FTC cannot resolve individual credit problems for consumers, it can act against a company if it sees a pattern of possible law violations.\n### National Fraud Information Center\nThe National Fraud Information Center (NFIC) also accepts consumer complaints. You can reach NFIC at 1-800-876-7060. NFIC is a private, nonprofit organization that operates a consumer assistance phone line to provide services and help in filing complaints. NFIC also forwards appropriate complaints to the FTC for entry on its telemarketing and credit repair agencies fraud database.\n### Law Firms Offering Credit Repair\nThere are a number of law firms which have moved into the credit repair market, such as Lexington Law. What difference does it make to have a law firm working on your credit repair? Not much. They go through the same process and do the same thing as the non-law firm credit repair organizations.\nWhy do we endorse Lexington Law? We've visited their office and talked to their employees. We've reviewed their credit repair procedures and we can truly endorse them. Their credit repair methods resemble the self-help strategies we have published on this site. You can fill out the form below and a paralegal will call you back for your free credit consultation, credit summary, and credit score. END
 TITLE: Credit Repair Company Warnings CONTENT:    |  |  |  | \n: . END
 TITLE: BBB Report on Credit Repair Company Complaints CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: March 21, 2017_\nBack in 2014, the Better Business Bureau (BBB) conducted a study on the credit repair and debt settlement industry focusing on consumer complaints, changes in laws, and the enforcement of these laws by the FTC. What they found was an increase in the number of consumers seeking help from the BBB to resolve their credit and debt problems arising out of incompetent credit repair and debt settlement companies.\nThe surge in complaints against credit repair companies rose to over 200,000 in 2014. Federal and state laws were enacted a few years ago to address these questionable operators and run them out of business. But, did all of these new laws help or is there still a rampant number of credit repair and debt settlement companies ripping off innocent consumers?\nBBB Complaints Rise Against Credit Repair Companies\n---------------------------------------------------\nSince 2008, more and more Americans have been falling further into debt, losing their jobs, and ruining their credit in the process. Looking for a way to improve their low credit score, consumers are turning to the Internet to look for credit repair companies who can remove negative items from their credit report which in turn may increase their scores.\nA Google search of \"credit repair companies\" brings up over 19 million hits, of which, many ads read: \"Fast Credit Repair - $29\" or \"Repair Your Bad Credit Fast.\" Because of these enticing ads, consumers sign up for the service only to be let down or taken to the cleaners. For example, in St. Louis (one of the cities the BBB studied) consumers paid an average of $816 to credit repair companies and 85 percent of those people received NO SERVICE in return.\nAccording to the BBB, complaints against credit repair companies ballooned in 2011. With the sudden overwhelming need for credit repair, many companies opened their doors only to masquerade as professionals much to the detriment of the consumer. Many of these fly-by-night companies have made the entire credit repair industry seem unsavory and the FTC had to sweep in and take control of this dire situation.\n### FTC Clamps Down on Credit Repair Organizations\nSeveral states joined the FTC in sweeps of credit repair organizations, filing numerous lawsuits alleging violations. These actions were called Project Credit Despair and Operation Clean Sweep. In these efforts, they targeted 20 credit repair operations, which charged hundreds of dollars in advance with promises to remove accurate information from consumers' credit reports.\nIn later years, the FTC and 24 state agencies announced a crackdown on 33 operations that claimed they could remove negative information, even if that information is accurate and timely. \"Companies that promise they are able to scrub your credit reports of accurate, negative information for a fee are lying — plain and simple,\" as stated by the FTC.\nLaw Passed to Protect Consumers from Credit Repair Scams\n--------------------------------------------------------\nAbout 15 years ago, in response to a then growing credit repair industry, Congress enacted the **Credit Repair Organizations Act** (CROA). According to the FTC website, the purpose of this act is as follows:\n1.  To ensure that prospective buyers of the services of credit repair organizations are provided with the information necessary to make an informed decision regarding the purchase of such services; and\n2.  to protect the public from unfair or deceptive advertising and business practices by credit repair organizations.\nWhen the FTC saw a sharp increase in complaints over the last few years, they began their crack-down and started to file lawsuits against these companies using the CROA as a basis for the filing. Many companies were shut down due to these lawsuits and some consumers were refunded their money. Now with a more watchful eye on the credit repair companies, the FTC has seemed to weed out all the bad companies and consumers can now be a bit more confident they will get the proper credit repair service they were entitled to in the first place.\n### What You Can Do To Avoid Be Scammed\nEven with the FTC watching out for you, you still need to make sure you do your homework before you sign up with a credit repair company. Having said that, there is really nothing a credit repair company can do for you that you can not do on your own. As evidence from this website, you can repair your credit yourself but it does take time and effort. If you don't have the time, here are some tips to make sure you are hiring a reputable credit repair company as outlined in the CROA.\n*   **Written Contract Required.** No services may be provided by any credit repair organization for any consumer;\n    1.  unless a written and dated contract (for the purchase of such services) which meets the requirements of subsection has been signed by the consumer; or\n    2.  before the end of the 3-business-day period beginning on the date the contract is signed.\n*   **Terms and Conditions of Contract.** No contract referred to in subsection meets the requirements of this subsection unless such contract includes (in writing);\n    1.  the terms and conditions of payment, including the total amount of all payments to be made by the consumer to the credit repair organization or to any other person;\n    2.  a full and detailed description of the services to be performed by the credit repair organization for the consumer, including;\n        *   all guarantees of performance; and\n        *   an estimate of the date by which the performance of the services (to be performed by the credit repair organization or any other person) will be complete;\n        *   or the length of the period necessary to perform such services;\n        *   the credit repair organization's name and principal business address; and\n        *   a conspicuous statement in bold face type, in immediate proximity to the space reserved for the consumer's signature on the contract, which reads as follows: \"You may cancel this contract without penalty or obligation at any time before midnight of the 3rd business day after the date on which you signed the contract. See the attached notice of cancellation form for an explanation of this right.\"\nThere are also some great articles on our site regarding credit repair companies such as How to Find a Good Credit Repair Company and Questions to Ask Before Hiring a Credit Repair Company. Take a minute to look these over before hiring a company to repair your credit for you. We recommend Lexington Law for credit repair as they adhere to the same methods of repair we talk about on our website.\nIf you would like to repair your credit on your own, you can read our easy to follow guide on credit repair. No matter which road you travel, do-it-yourself or hiring a company, fixing your credit is a worthwhile endeavor that will reap benefits for years to come. Start today and fix your credit! END
 TITLE: Debt Validation Myths - Understanding Debt Validation CONTENT: Debt Validation Myths - Debunking Debt Validation Misconceptions\n----------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 29, 2016_\nThe following myths are based upon misconceptions regarding the Fair Debt Collection Practices Act (FDCPA) U.S.C. § 1692. We are not addressing individual state debt collection laws.\n_NOTE: An initial communication is the first communication received by a consumer in regard to a debt. If that communication does not contain the name of the current creditor, amount of the debt, and the 30-day notice (1692g), the debt collector must send that information within 5 days._\nHaving said that, the following \"myths\" refer to initial communications that do contain the required information.\nMYTH #1\n-------\n**A consumer can send a debt validation letter to a debt collector at any time, and the collector must respond.**\nThis is not true. According to the FDCPA, a letter requesting validation must be sent within 30 days of a debt collector's initial communication. An initial communication is _usually_ the first debt collection letter which contains the 30-day notice found in § 1692g(a) of the FDCPA.\nOnce a debt collector receives a timely validation request, it must cease collection efforts until it validates the debt.   It cannot send more letters or make phone calls requesting or demanding payment. In the event that it is reporting the debt to the credit reporting agencies, it cannot update the collection entry EXCEPT to report that the debt is disputed. **Reporting the fact that the debt is disputed is a requirement in § 1692e(8) of the Act.**\nMYTH #2\n-------\n**A debt collector is required to respond to a timely validation request within 30 days of the receipt of the request.**\nFalse. The 30-day requirement is placed on _consumers_. While a consumer must send a validation request within 30 days of the first collection letter that contains the 30-day notice, a debt collector can take as long as he chooses to respond. However, he cannot attempt to collect again until he provides validation.\nNote that after receiving a timely validation request, a debt collector does not have to validate if he chooses to cease collection efforts. He may never respond at all, or he may send a letter informing the consumer that the file on the account is closed. \nMYTH #3\n-------\n**In the event that a consumer has never received a collection letter from a collection agency, a collection entry (also known as \"tradeline\" or \"TL\") on a consumer's credit report can be considered an \"initial communication\" triggering a consumer's right to request validation under 1692g(b).**\nWhile some courts have ruled that reporting to credit reporting agencies is a \"communication\" as defined by 1692a(2), the term \"communication\" means \"the conveying of information regarding a debt directly or indirectly to any person through any medium.\"  To date, no court has ruled that reporting to credit reporting agencies is an \"initial communication.\" \nSome courts have ruled that an entry found on a credit report does NOT constitute an \"initial communication.\"  Listed below are some court cases addressing this very topic.\n**Robinson v. TSYS Total Debt Management, Inc. Dist. Court, D. Maryland, 2006**\n\"The above allegations identify two candidates for the 'initial communication' that is required to trigger 15 U.S.C. § 1692g.\\[6\\] The first candidate, when Defendant communicated the debt to Plaintiffs credit report, cannot support a claim under the FDCPA because it is not a communication with a consumer. See 15 U.S.C. § 1692g(a) (identifying 'initial communication' as with a consumer in connection with the collection of any debt).\"\n**Pretlow v. AFNI, Inc.  WD Virginia, 2008**\n\"Plaintiffs have not alleged that they received any communications from Defendant which would form the basis of a debt validation claim. Their claim is based, rather, on communications between Defendant and certain credit reporting agencies. Section 1692g is therefore inapplicable on the facts pled.\"\n**Toth v. Cavalry Portfolio Services, LLC. Dist. Court, D. Nevada, 2013**\n\"As it is undisputed that no notice was provided, the only question remaining is whether Defendant had an \"initial communication\" with Plaintiff, the consumer\\[1\\]. Plaintiff argues that Defendant communicated with Plaintiff 'using the credit reporting bureaus as a vehicle' (#9; 4:8-9). In other words, Plaintiff argues that by reporting Plaintiff's past-due account to the credit reporting agencies, Defendant communicated with Plaintiff via those agencies.\"\n\"Because Defendant never had an 'initial communication' with Plaintiff, Plaintiff has failed to state a claim upon which relief can be granted.\"\n**Berberyan v. Asset Acceptance, LLC, Dist. Court, CD California, 2013**\n\"In opposition, plaintiff argues that defendant 'communicated' with her through its alleged reporting of a debt that appeared on her credit report, but plaintiff offers no authority that supports such an expansive reading of the term 'communicated.' Opp'n at 6. Defendant must do something more than allegedly place notice of a disputed debt on plaintiff's credit report to trigger its disclosure duties.\"\n**Gonzalez v. Midland Funding, LLC, Dist. Court, ND Texas, 2013**\n\"Plaintiff fails to allege any facts that can show there was ever an initial communication by defendants to plaintiff, and does not allege that he responded to any such communication within a thirty-day period. It appears that plaintiff may believe that his unsolicited letter demanding validation from defendants qualifies as an initial communication under § 1692g; however, the initial communication is an attempt by the debt collector to collect a debt, not an attempt by a consumer to challenge a debt.\"\n**Williams v. LVNV Funding, LLC, Dist. Court, D. Colorado, 2014**\n\"Plaintiff attempts to argue that 'the reporting \\[to the credit agencies\\] of the account the first time would be an initial communication' - however, the Court is not persuaded by self-serving statements lacking any supporting authority.\" \n**Perry v. Trident Asset Management, LLC, Dist. Court, ED Missouri, 2015**\n\"However, the crux of the dispute here is not whether reporting debt is a 'communication' or 'debt collection activity' - 'but rather whether it is a 'communication with a consumer' that triggers § 1692g(a)'s validation notice requirements. Plaintiff cites no cases finding that reporting to a credit agency is a communication with a consumer, and the Court has found none.\"\n**Danehy v. Jaggee & Asher, LLP, Dist. Court, North Carolina, 2015**\n\"Accessing a consumer report does not constitute an initial communication with a consumer as contemplated by § 1692g(a). Without knowledge as to when, or if, plaintiff would request his consumer report, defendant J&A could not have intended to communicate with plaintiff indirectly through TransUnion.\"\nMYTH #4\n-------\n**A debt collector must provide a detailed accounting of a debt in order to show how the balance was calculated, i.e. \"explain and show me how you calculated what you say I owe.\"**\nThis is not required.\nVerification of a debt involves nothing more than the debt collector confirming in writing that the amount being demanded is what the creditor is claiming is owed; the debt collector is not required to keep detailed files of the alleged debt. _Chaudhry v. Gallerizzo_, 174 F.3d 394, 406 (4th Cir. 1999).\nThis provision is not intended to give a debtor a detailed accounting of debt to be collected. _Maynard v. Cannon_, 401 F. App’x 389, 396 (10th Cir. 2010).\nThe Eighth Circuit Court of Appeals confirms that the verification requirement is satisfied where the debtor \"could sufficiently dispute the payment obligation.\" See _Dunham v. Portfolio Recovery Assocs., LLC_, 663 F.3d 997, 1004 (8th Cir.2011).\nProof could consist of:\n1.  A credit card statement (such as a charge-off statement) that matches the balance claimed.by the debt collector.\n2.  A list of charges that total the amount claimed in the initial communication.\nMYTH #5\n-------\n**An initial communication can validate a debt.**\n1692g(a) requires that an initial communication or a letter within 5 days of that initial communication include the name of the creditor to whom the debt is owed and the amount of the debt. If an initial communication could serve to validated a debt, it would render 1692g(b) to be meaningless. Why would a debt collector be required to \"cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt,\" if the initial communication served to satisfy the validation requirement in 1692g(b)?\nThis takes us to the next myth.\nMYTH #6\n-------\n**A validation response from a collection agency can merely repeat the information provided in the initial communication without providing documentary evidence of the debt.**\nWhile courts are divided as to what constitutes proper validation, they certainly have not ruled that validation may be accomplished by merely repeating the information required by 1692g(a).\nIn _Chaudhry_ (see Myth #3), the Fourth Circuit Court of Appeals ruled that verifying a debt \"involves nothing more than the debt collector confirming in writing that the amount being demanded is what the creditor is claiming is owed; the debt collector is not required to keep detailed files of the alleged debt.\" However, documentation had been provided by the debt collector in that case.\nAllowing a debt collector to validate a debt by merely repeating the information in its initial communication would be the same as allowing the collector to say \"because I say so.\" It would be contrary to the language in 1692g(b) and would render that subsection meaningless.\nMYTH #7\n-------\n**If demanded, a collection agency must, in its response, prove it is licensed to collect debts in the consumer's state.**\nThe FDCPA makes no such requirement.\n### MYTH #8\n**A consumer should reference sections of the FDCPA and FCRA (Fair Credit Reporting Act) in a debt validation request in order to put a debt collector on notice that he is aware of his rights.**\nIt is not necessary to include any references to the FDCPA and FCRA in a dispute and validation request letter. Simply disputing and requesting validation is enough to show that a consumer is aware that he has certain rights. In addition, it's not the consumer's responsibility to inform a debt collector of the debt collector's responsibilities that are outlined in either Act. If the debt collector is unaware of his responsibilities, it's his problem.\nMYTH #9\n-------\n**Upon receiving a summons and complaint, a consumer can request validation, thereby preventing any further action by the plaintiff until the debt has been validated.**\nAs has been stated, a validation request is valid only when sent within 30 days of an **initial communication**. A summons and complaint is **not** an initial communication that would trigger the 30-day validation period.\n1692g(d):\n_(d) Legal pleadings_\n_A communication in the form of a formal pleading in a civil action shall_ **_not_** _be treated as an initial communication for purposes of subsection (a)._\nMYTH #10\n--------\n**A consumer can include both a request to validate a debt and a demand to cease and desist communications in a timely debt validation letter which would serve to prevent a lawsuit due to the fact that the \"cease and desist\" would prevent the debt collector from responding to the validation request.**\nThat is incorrect. Requesting validation could be considered consent to allow the debt collector to contact the consumer strictly for the purpose of validating the debt.\n**Clark v. Capital Credit & Collection Services, Inc. - 9th Circuit Court of Appeals, 2006**\n\"Focusing on that level of sophistication, we will enforce a waiver of the cease communication directive only where the least sophisticated debtor would understand that he or she was waiving his or her rights under § 1692c(c).\"\n\"Applying our newly articulated waiver standard to the facts before us, it is obvious that even the least sophisticated debtor would recognize that Mrs. Clark's request for information constituted consent for Hasson, Capital's attorney, to return Mrs. Clark's telephone call in order to provide the specific information she requested.\" END
 TITLE: Free or Low Cost Credit Counseling Services CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: March 24, 2017_\nSince the economic downturn, more Americans are falling deeper into debt. With that has come ads on TV and in newspapers - \"Credit Problems? No Problem\" or \"We Can Remove Bankruptcies, Judgments, and Liens from Your Credit Report - Quick and Easy.\" Unfortunately, nothing is quick and easy when it comes to repairing your credit and these exaggerated claims are way too good to be true.\nThese credit repair companies target those with poor credit making grand claims of cleaning up their credit so they can get a car loan, credit card, or mortgage. It is best if you try to repair your credit on your own, but if you can't resolve your credit problems yourself or you need additional help, you may want to contact a credit counseling service.\nHistory of Credit Counseling\n----------------------------\nThe first credit counseling agencies were organized in 1951 when credit card companies created The National Foundation for Credit Counseling. The NFCC is a non-profit organization representing Member Agencies that provide free or low-cost individualized, confidential credit counseling in-person, by phone, or on-line. The NFCC Member Agency Network includes more than 700 community-based offices in all 50 states and Puerto Rico.\nWith the overwhelming growth of consumer debt, two more organizations were formed to control the credit counseling industry - the \"Association of Independent Consumer Credit Counseling Agencies\" and the \"American Association of Debt Management Organizations.\"\nNot all credit counseling agencies belong to one of those organization, and they don't have to be to do business. So, not all credit counseling agencies claiming to be legitimate really are so it is very important to make sure the company you are going use is a member of one those organizations. Today there are over 1,000 legitimate credit counseling agencies helping consumers get out of debt.\nWhat is Credit Counseling?\n--------------------------\nCredit counseling involves experts who work with consumers who are in debt, get out of debt. This is done through education, negotiation, and coming up with a debt management plan for the client to follow. If followed, this plan will help the consumer repay his\/her debt by working out a repayment plan with the creditors.\nCredit counseling often involves negotiating with creditors to establish a debt management plan for a consumer. This DMP may help the debtor repay his or her debt by working out a repayment plan with the creditor.\nTypes of Free Credit Counseling Agencies\n----------------------------------------\n**Non-Profit.**  There are non-profit organizations in every state that counsel consumers in debt. Counselors try to arrange repayment plans that are acceptable to you and your creditors. They also can help you set up a realistic budget. These counseling services are offered at little or no cost to consumers. Non-profit counseling programs are sometimes operated by universities, military bases, credit unions, and housing authorities.\n**Low-Cost and Free Counseling.**  There are numerous organization that offer free or low-cost counseling to those consumers who qualify. You can also check with your local bank or consumer protection office to see if it has a list of reputable, low-cost financial counseling services available.\nTips to Finding Low-Cost and Free Credit Counseling\n---------------------------------------------------\nOne way to find low-cost to free credit counseling is to search the internet. There are lots of listings so make sure to read all the find print before you sign up with one. We do have a few suggestions on organizations that offer credit counseling at little or no charge that you can check out:\n*   National Foundation for Credit Counseling is the nation's largest financial counseling organization. NFCC is a non-profit organization that provides free or low-cost individualized, confidential credit counseling by trained Certified Credit Counselors.\n*   The FTC offers advise on fixing your credit on your own and what to look for if you are going to use a credit counseling company. They give you tips on how to recognize a credit repair scam and what questions to ask when looking for one to use.\n*   Neighborhood Housing Services offers financial counseling at no fee. It does not offer debt consolidation loans, and has offices in every city in the country.\n*   HUD.gov lists approved counseling agencies that help homeowners in financial trouble. END
 TITLE: annualcreditreport.com - Free Yearly Credit Reports CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: March 17, 2017_\nAnnualCreditReport.com is the only authorized source for the free annual credit report that is yours by law. The FCRA guarantees access to your credit report for free from each of the three nationwide credit reporting agencies every 12 months.\nThis website is jointly operated by Experian, Equifax, and TransUnion and was created in order to comply with their obligations under the Fair and Accurate Credit Transactions Act (FACTA) to provide a method for American consumers to receive a free annual credit report. The goal was to allow consumers a way to ensure their credit information is correct and to guard against identity theft. The three major credit reporting agencies created the joint venture company, Central Source, LLC, to oversee their compliance with the FACTA. This service does not lower the consumers score nor does it count as a credit inquiry.\nThe FTC has received complaints from consumers who thought they were ordering their free report from other companies but were actually forced to pay fees or buy other services. While there are many companies out there with similar sounding names the site that provides this free government mandated credit report access is AnnualCreditReport.com. Consumers who want to take advantage of this free service should type the address carefully to avoid landing on a legitimate looking page run by a scam artist.\nHow to Get Your Free Report\n---------------------------\n1.  Go to www.AnnualCreditReport.com\n2.  Click on the button **Request Your Free Credit Reports.**\n3.  The next page will ask for your name, address and other identifying information that will allow the free credit report to be generated.\n4.  After all of that information has been entered, you will be asked to choose which of their three credit reports you wish to review.\n5.  After choosing the credit report (or reports) to review, you will be transferred to the site of the appropriate credit reporting agency or agencies.\n6.  In order to verify identity consumers, you will need to enter the last four digits of your social security number.\n7.  At this point, you will have the option of checking you numerical credit score with the agency but there is a small charge for that extra service.\n8.  As a safety measure, you will need to answer a few identity questions. This process is relatively painless, and an important safety measure designed to prevent fraud and abuse.\nViewing and Saving Your Credit Reports\n--------------------------------------\nThe credit report itself is presented in an easy to use format, with links to each section of the credit report, including open accounts, potentially negative information and recent credit inquiries. This electronic format is far easier than the old method of requesting a copy of the credit report by mail, reading through the paper and painstakingly documenting errors by hand. You can easily spot any attempts at identity theft or other potential problems.\nThe online credit report also provides a \"dispute\" link so you can dispute any erroneous information found on the report. You can use this or you can submit disputes through regular mail and send them via certified mail. We have found both methods work equally well.\nThe web site has a FAQs section for asking \"how to\" questions about getting your credit report and using this free service more effectively. The FAQ link is located right at the top of the home page, making it visible to consumers wanting answers to their questions.\nThe site also includes a customer comment form consumers can use to contact the AnnualCreditReport.com organization. You may ask questions about the use of the site or your credit report using this form that are not already covered in the frequently asked questions section of the web site.\nWith identity theft a growing problem and reports of fraud on the rise it has never been more important for every consumer to know what is in his or her credit report. The service provided by AnnualCreditReport.com is a big step in the right direction, and a great way for consumers to get a jump on the identity thieves and other bad guys that plague the modern world. Getting your credit report is an important first step in beginning your credit repair process. END
 TITLE: annualcreditreport.com - Free Yearly Credit Reports CONTENT:    |  |  |  | \n: . END
 TITLE: Credit Repair Service Using Lexington Law CONTENT: Credit Repair Service — How Does Lexington Law Work?\n----------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 21, 2017_\nIf you’ve done much research on credit repair companies, you know there’s a lot to be leery of. While there are legitimate services out there, many are scams that will only make your financial situation worse. Lexington Law is one of the exceptions, which is why we have been recommending them for years. They understand applicable consumer protection laws and they use credit repair techniques accordingly. Want to know what to expect? Here’s how Lexington Law works.\nMonthly Credit Repair Service Levels\n------------------------------------\nWhether you do credit repair on your own or pay a company to do it for you, it’s typically a months-long process. To that end, Lexington Law charges by the month, the cost of which varies depending on which service level you choose:\n*   Concord Standard — $89.95\/month\n*   Concord Premier — $109.95\/month\n*   PremierPlus — $129.95\/month\nThat said, you won’t be charged the monthly fee right away — or _any_ upfront fee, for that matter. Five to 15 days after you sign up, you will be charged a “one-time first work fee” for “work initially completed.” Your monthly fee doesn’t kick in until 30 days later. (Note, specific time frames for charges vary by state.)\nWhat Lexington Law Can Do For You\n---------------------------------\nIf you go with the **Concord Standard** level with Lexington Law, you can expect the following:\n*   Assigns attorneys and paralegals to your case\n*   Looks at your credit reports from all three major credit reporting bureaus — Experian, TransUnion, and Equifax\n*   Asks you to explain how certain negative listings have unfairly impacted your credit\n*   Determines which credit repair strategy is best suited to each item\n*   Sends dispute letters to the credit bureaus on your behalf, as appropriate\n*   Sends intervention letters to creditors, as appropriate (e.g., escalated account investigations, goodwill interventions, requests for debt validation)\nThrough it all, you can track your credit repair process 24\/7 through their website or mobile app.\nIf you go with the **Concord Premier** level, you get:\n*   All of the benefits of Concord Standard\n*   Monthly analysis of your credit reports and scores\n*   Daily credit monitoring of your TransUnion credit report and score\n*   Tools to deal with creditor inquiries that unfairly hurt your credit score\n*   Coaching on how to deal with damaging changes to your credit reports\nLastly, if you go with the **PremierPlus** level, you get:\n*   All of the benefits of Concord Standard and Premier\n*   Help asking creditors to cease and desist contact with you\n*   Monthly FICO Score tracking\n*   Tool to track your financial and credit accounts\n*   Fraud alerts\nWhat Lexington Law Credit Repair Service Does NOT Do\n----------------------------------------------------\n**They don’t mislead you about results.**\nWhile they do reference an average of 10.2 removals per customer within 4 months’ time, they stress it’s different for everyone.\nAs Lexington Law states on its website, “Not only is it illegal to guarantee results for credit repair, it is impossible to predict final actions and decisions of creditors, debt collectors, and credit bureaus.”\nThey also make clear that the 10.2 removals is across all three credit bureaus, meaning if one listing is removed from all three of your credit reports, Lexington Law counts it as three removals.\n**They don’t lock you into a contract.**\nWhichever service you sign up for is on a monthly basis. You can cancel your Lexington Law service at any time. Of course, they only charge for work _after_ it is performed, so you should expect to be billed one more time after request of cancellation.\n**They don’t pretend like you can’t do it yourself.**\nAs we have stated countless times here over the years, there is nothing a credit repair company can do for you that you cannot do for yourself. Lexington Law states as much on its website: \"Remember that you have the right under federal law to conduct your own credit repair work if you so choose.\"\n**They don’t charge you for work they haven’t done.**\nAgain, Lexington Law only charges for work they have completed. Though required by law, this is not a given across this industry. All too often, consumers are duped into paying upfront fees, sometimes for work that never gets done at all.\nHow to Get Started Using a Credit Repair Service\n------------------------------------------------\nTalk to someone at Lexington Law. **Call 800-461-0524 for a free consultation** that includes a review of your credit report summary and a FICO score. It’s free with no obligation.\nIf it turns out to be something you feel you can’t afford right now, remember that DIY credit repair is free. And as Lexington Law states on its website, \"You have the option to begin the credit repair process on your own and enlist the help of Lexington Law at a later point in time.\"\nLearn more at LexingtonLaw.com. END
 TITLE: **\n*   TransUnion credit report\n*   VantageScore 3.0 based on TransUnion credit report (**not** a FICO Score)\n**WalletHub**\n*   TransUnion credit report\n*   VantageScore 3.0 based on TransUnion credit report (**not** a FICO Score)\n*   Updated daily\n**NOTE:** If you’re only going to subscribe to one of these sites, make it Credit Karma, as they show you credit reports from both TransUnion and Equifax. But it’s worth signing up for Credit.com, too. Even though the free option only includes a “Credit Report Card,” you at least get insight into your third credit report (and score) — from Experian.\n**Credit Monitoring for a Fee**\n-------------------------------\nThe following sites offer free services (as listed above), but if you want to see your entire credit report through Credit.com, it’s going to cost you. The same is true if you want to see your credit reports more frequently through Quizzle.\n**Credit.com** **— ExtraCredit – 24.99\/month\\***\n*   All three credit reports, Experian, TransUnion and Equifax\n*   28 FICO Scores\n*   Credit Monitoring\n\\*Start 30-day trial membership for $0. If you don’t cancel before the 7 days is over, the subscription kicks in for $24.99 a month.\n**NOTE:** We do not recommend this paid service. You can see your full Experian credit report for free through Experian CreditWorks Basic. You can see your full TransUnion credit report for free every 7 days through Credit Karma (as well as Equifax). WalletHub updates TransUnion credit reports daily. And as for your FICO Score, you can see that for free through Discover Credit Scorecard.\n### **Credit Bureaus Offering Credit Monitoring for a Fee**\nThe following list may be a bit overwhelming and if so, you can skip it. We don’t really recommend any of these paid services but if you feel so inclined to use them, feel free to review these offers.\n**Experian**\nIt bears repeating that there is a free option:  You can see your FICO 8 credit score and Experian credit report for free.  Just give some personal identification and boom, access to your report and your score.  However, if you want to see all three credit report plus get credit monitoring, there is a paid option,  \nExperian CreditWorks Premium — $24.99\/month\\*\n*   Monthly 3-Bureau FICO® Scores\\*\n*   3-Bureau Credit Monitoring and Alerts\n*   Daily FICO® Scores Based on Experian Data\n*   Experian CreditLock with Alerts\n*   FICO® Score Tracker\n*   Identity Protection and Alerts\n*   Dedicated Fraud Resolution Support\n*   Lost Wallet Assistance\n\\*7 days free, then $24.99\/month\n**Equifax**\nEquifax Complete Premiere Plan — $19.95\/month\n*   Regular access to Equifax Credit Score, which is based on their own unique algorithm (not FICO or VantageScore)\n*   Annual access to 3-bureau Equifax Credit Scores and credit profiles\nEquifax Complete Family Plan — $19.95\/month\n*   Regular access to Equifax Credit Score (not FICO or VantageScore) based on Equifax credit report\n*   Annual access to 3-bureau Equifax Credit Scores and credit profiles\n*   Covers two adults\nScore Watch 1-Bureau Credit Monitoring — $14.95\/month\n*   Access to Equifax credit reports twice a year\n*   Access to FICO Score 5 (based on Equifax credit report) twice a year\n**TransUnion**\n1-Bureau Credit Monitoring — $24.95\/month\n*   Unlimited access to TransUnion credit report\n*   Unlimited access to VantageScore 3.0 based on TransUnion credit report\n**NOTE:** Since we have already outlined in previous sections how to see your credit reports for free, there is no reason to pay for them through the credit bureaus. Yes, these paid services give you access to FICO Scores. But you can see your FICO Score for free through Discover Credit Scorecard. And if it’s industry-specific FICO Scores you need, pay for them through myFICO.com (details below).\n### **Credit Monitoring Offered by myFICO.com**\nThough it’s never necessary to pay to see your credit reports, it might be worth paying to see your industry-specific credit scores when you’re looking for auto or home financing. In that case, myFICO.com is the way to go.\nBasic — $19.95\/month\n*   Experian credit report\n*   FICO Scores 8 and 9, and industry-specific scores\n*   Updates every month\nAdvanced — $29.95\/month\n*   Credit reports from all three bureaus\n*   FICO Scores 8 and 9, and industry-specific scores\n*   Updates every three months\n*   Credit monitoring with all the perks.\nPremier - $39.95\/month\n*   Complete 3 bureau coverage\n*   FICO Scores from all three bureaus\n*   Updates every month\n*   Credit monitoring with all the perks.\n**NOTE:** Of the three options above, we recommend myFIco Advanced, unless you are actively repairing your credit, then you probably want to see your scores and credit reports more often, then go with Premiere. END
 TITLE: Work Number - Database of Employment and Salary Information CONTENT: Massive Database Shares Employment Income on Millions of Americans\n------------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 17, 2017_\nCertainly human resources departments have better things to do than verify your employment information for potential employers or creditors, especially within big corporations. But the solution adopted by more than 2,000 employers nationwide may be more than employees bargained for.\n### What is The Work Number?\nThe Work Number is a database of employment and salary information created over a decade ago by TALX, a company that became a subsidiary of Equifax, one of the three major credit reporting agencies.\n### How Do Employers Use This Database?\nEmployers use The Work Number database as a means of outsourcing the employment and salary verification process. These employers reportedly include two-thirds of the Fortune 500 companies and 90 percent of government agencies, many of which allow The Work Number direct access to their payroll systems. So when potential employers need to verify employment and income of current or former employees in any one of these participating companies, they may go through The Work Number database instead of an internal human resources department.\n### Who Else Can Access the Information in The Work Number Database?\nThe information in this database can be sold to mortgage companies, auto lenders, credit card companies, landlords and colleges. Presumably these organizations use this information to target potential borrowers and\/or weigh credit risk. Debt collectors can also use The Work Number database, though reportedly only to verify employment, not salary.\n### How Do I Know If I Am In Database?\nYou can search The Work Number database for your employer and\/or your name at TheWorkNumber.com. There are 190 million employment and salary records in the database, representing more than a third of U.S. adults, so there's a good possibility you could be in it.\n### Will I Be Notified When Inquiries Are Made to The Work Number Database?\nYour consent is required for income verification. This implies, however, that your permission is not required for the divulgence of other employment verification, such as employer name, start date and job title.\n### How Can I See Information About Me In The Work Number Database?\nYou are entitled to an Employment Data Report. This not only provides you with all of the information about you included in the database, but also a list of those who have made inquiries. You can request your Employment Data Report through TheWorkNumber.com. END
 TITLE: Free Credit Monitoring Offers You Can Use CONTENT: ###### Written by: Kristy Welsh\n5 Free Credit Monitoring Sites: Review\n--------------------------------------\n_Last Updated: April 3, 2017_\nThough you can see free credit reports through AnnualCreditReport.com, that’s only once a year. And you’re not entitled to free annual credit _scores_ at all. That’s what makes free credit monitoring services so attractive, but what do they offer exactly and which one is best for you? Find out in this review of your top 5 options. If you have questions about credit monitoring, read out article on Credit Monitoring FAQs.\n### **What the Top 5 Have In Common**\n**Free credit report information.** Most of these sites provide information from your TransUnion credit reports, but a couple of them provide info from the reports of Equifax and Experian, too. So, if you sign up for multiple sites, it’s possible to keep an eye on all three credit reports.\n**Free VantageScore 3.0.** The VantageScore was created by the three major credit reporting bureaus in 2006. They’d hoped to become competitive with the all-important FICO Score, but FICO is still reportedly used by 90 percent of creditors. That said, the VantageScore will at least give you an idea of where your credit stands. And if you see it fluctuate significantly up or down, chances are your FICO Score is, too.\n**Factors impacting your credit.** They’ll point out important things on your credit reports and how they’re affecting your credit scores.\n**No credit card required.** There’s no “free trial” that requires a credit card that gets charged if you don’t cancel. These services truly are free. The only exception is if you upgrade to a premium version.\n**Alerts notifying you of changes to your credit reports.** This may include things like hard inquiries, new accounts, late payments, and accounts that have been turned over to collection agencies. The sooner you know these changes have happened, the sooner you can address them. For instance, if you see a new account pop up that you didn’t open, you may be a victim of identity theft. Or, if you see an account that’s in good standing get turned over to a collection agency, there’s been a mistake.\n**Personal information.** They’ll have to collect this from you in order to access your credit reports and scores (e.g., name, birthdate, social security number).\n**Tough security.** All of these credit monitoring sites use industry leading security, encryption, and firewall practices.\n**Targeted advertising.** If you’re wondering why these credit monitoring sites would provide this service for free, this is the reason — they make money off targeted advertising. For example, they’ll show you credit card offers that you’ll likely qualify for. If you apply through their site, they get paid for it.\n### 5 Free Credit Monitoring Services\n**Credit Karma**\n*   Free TransUnion and Equifax credit report information updated weekly\n*   Free VantageScore 3.0 updated weekly\n**Credit.com**\n*   Free Experian credit report information updated every 2 weeks\n*   Free VantageScore 3.0 updated every 2 weeks\n**Credit Sesame**\n*   Free TransUnion credit report information updated monthly\n*   Free VantageScore 3.0 updated monthly\n*   $50,000 identity theft insurance\n*   Option to upgrade to paid credit monitoring that will increase the frequency of score updates and give you access to credit information from all three credit bureaus\n**WalletHub**\n*   Free TransUnion credit report information updated daily\n*   Free VantageScore 3.0 updated daily\n**Quizzle**\n*   Free TransUnion credit report information updated every 3 months\n*   Free VantageScore 3.0 updated every 3 months\n*   Option to upgrade to paid credit monitoring if you want to see your reports and scores every month\n### **The Takeaway**\nThe way to see information from all three credit reports is to sign up for both Credit Karma (which covers TransUnion and Equifax) and Credit.com (which covers Experian).\nThat said, there are perks to a couple of the others services, too.\nIf you want to keep a super-close eye on things, you might want to throw WalletHub into the mix, as it updates reports and scores _daily_. Credit Sesame’s $50,000 identity theft insurance is also worth looking into. The only one of these sites that doesn’t seem to have anything special to offer is Quizzle, but it’s included here since it is considered one of the top free credit monitoring services.\nOf course, if you’d rather just keep it simple with just one credit monitoring site — at least to start — go with Credit Karma. Weekly updates are a good frequency and you get information from two of three credit reports. END
 TITLE: Advice on Your Credit Report and Credit Score CONTENT: Free Credit Report Advice and Facts About Your Credit Score\n-----------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 17, 2017_\nIf you are thinking about buying a car or a house, the first thing that pops up into your mind is — \"What is my credit score?\"  This is the first thing we think of because we have been conditioned to equate credit score with getting credit. We are not saying that statement is not essentially true, but, sometimes you have to step back and take a look at the overall picture. Is your credit score that important? What other things should you be focusing on when reviewing your credit reports? Well, this article takes a look at what is important and we will give you some advice on what to work on when thinking about applying for new credit.\nDon't Be Overly Concerned With Your Credit Score\n------------------------------------------------\nAccording to a recent survey, there are over a hundred different scoring models out there, which means there are just as many different credit scores. FCIO is different from VantageScore, which is different from other proprietary scoring models, such as insurance scores. The information and algorithms each of these models uses is different as is the final score you are going to get from each and every one of them. That, on top of the fact your information can vary from day to day, makes it extremely difficult to know your credit score for certainty.\nSo, instead of focusing on your score, focus on your report — that is — all three reports from Equifax, Experian, and TransUnion to be exact. Unless your lender tells you which one they are going to use, it is best to make sure you get yearly copies of all three.\nHow to Order Your Credit Reports\n--------------------------------\nThere are two ways to get your credit reports, either for free or for a small fee. Depending on whether or not you want to pay for these reports and how often you want to obtain a new one, there are two ways to go about getting your reports.\n1.  You are legally entitled to get each of your credit reports, for free, every 12 months from AnnualCreditReport.com. So, by staggering when you get the free copies, you can check the report for a different bureau every four months. But, you will have to pay extra to get your credit score.\n2.  You can sign up for a free credit score or credit monitoring service from a number of companies and you will get one or all of your credit reports as part of the deal. Make sure to read all the fine print before signing up for one of these programs as they will get you for a monthly fee after the initial free trial period. You can check out our credit report offer guide for more information on some of these programs and see which one is best for you.\nWhy Get All Three Credit Reports?\n---------------------------------\nSince we are talking about not focusing on your credit scores, we need then to focus on your credit reports. There are three reports you need to make sure to order — Equifax, Experian, and TransUnion. These are the big three credit bureaus and these are the ones used by 99 percent of all lenders. The reason you need all three is that each one has their own way of gathering and processing credit history data on you. You might have a creditor report to one bureau but not another, and, you may have errors on one report and not another. So, you need to check each report very carefully for errors and omissions.\nIf you do find any errors on a credit report, make sure to dispute those errors with that particular credit bureau. A recent study showed that 70 percent of all credit reports contains some kind of inaccuracy with 25 percent of those errors being bad enough to deny someone credit. So, it is up to you to make sure your report is error free.\nExamine Your Credit Report For Errors\n-------------------------------------\nThe number one thing to look for is errors, but after you have done that, look to see where you can make improvements. Here are some things to look for:\n*   on-time payments\n*   different kinds of credit\n*   keeping credit balances low\n*   minimal credit inquiries\nIf you see you might be lacking in one or more of those areas, time to make a plan and make some improvements. Are your balances high? Make an effort to pay them down to below 30 percent of your available credit. If all you have are credit cards, time to think about an installment loan or line of credit and a great place to get one of these is at a local credit union. Lastly, if you see late payments, make a whole-hearted effort to make your payments on time. Late payments are the number one downfall of a credit score.\nStill Hung Up on Knowing Your Score? Choose One\n-----------------------------------------------\nOK, so you are a numbers kind of person and you really, really want to know your score. Then pick one to focus on and we suggest you choose your FICO Score. Why FICO and not VantageScore? Well, your FICO Score is the one the majority of lenders look at when evaluating you as a credit risk. The big three credit bureaus will show you your VantageScore so you will have to go to the actual FICO website to order your score.\nYou can get your FICO Score one of two ways:\n*   You are entitled to a free FICO Score when lenders who use that score deny you for a loan or don't give you the best terms. \n*   You can pay for your score by going to myFICO.com.\nA FICO Score ranges from 300 to 850, which is the same for VantageScore. What’s different is how FICO and VantageScore algorithms weight different categories of credit information to generate scores. We have a great article explaining the differences between FICO and VantageScore on our site so check it out if you want more information.\nWe all know how secretive the credit bureaus are when it comes to calculating your credit score. While no one knows exactly how they come up with your credit score, we can at least try to lessen some of the bad items found in our credit history. So the bottom line is, don't get too hung up on knowing your credit score but focus on your credit reports and getting rid of negative information. The better your credit report, the better your score will be down the road. And this means lower interest rates on loans and saving you money. END
 TITLE: Who is Responsible for Correctly Reporting Your Credit History CONTENT: Credit Reporting History - Information to Credit Bureaus\n--------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 19, 2017_\nHave you ever wondered how all that information appears on your credit report? Better yet, who is responsible for making sure the information on your credit report is accurate and correct? That is the million dollar question and you are not alone in wondering how this whole credit history gathering process takes place.\nThere are two entities responsible for reporting your credit history, the **credit bureaus** and the company reporting your pay history, **the information furnisher**. Companies who report such information can be credit card, mortgage or auto loan companies. The credit bureau account information can only be as accurate as the information it is provided by the information furnisher. However, a credit bureau oftentimes can take correct information and report it incorrectly.\nOver the years, the Federal Trade Commission has seen a reduction in the number of complaints received relative to inaccurate information on credit reports. Even though complaints have decreased, recent surveys, by numerous news sources, have found that 25 percent of credit reports contain inaccurate data serious enough to deny someone credit and 70 percent of credit reports contain some kind of inaccuracy. While it's true the large amount of data the credit bureaus handle makes it difficult to stay on top of things, the credit bureaus are for-profit corporations who could be doing more with their profits to make sure that the data they have is accurate.\nThe FACTA legislation, passed in 2003, allowed consumers to directly challenge the information furnishers about information contained in their credit reports. It further stipulated that the FTC must come up with rules detailing how disputes with information furnishers must be carried out. Seven years later, in 2010, the FTC has finally published rules for information furnisher disputes. The new rules took effect July 1, 2010.\nFor instructions on how to dispute directly with the information furnisher, read this article on what is known as the 623 method.\nBefore the changes to the FCRA, consumers were not allowed to dispute negative information on their credit report with anyone but the credit bureaus. Only the most heavily wronged consumers actually fought back against the banks for refusing to correct inaccurate reporting to the credit reporting agencies.\nDuring the period 1997 to 2002 before the laws took place, consumers had to expend money, time and resources in order to fix problems stemming from inaccurate information furnisher reporting. The burden of proof and the costs gathering this proof fell on the consumer.\nNo letter better illustrates this than the following, submitted by Denise Richardson, who gave me permission to publish this letter and her name. Fleet Mortgage (now Bank of America), reported an inaccurate mortgage foreclosure on her credit report. Since writing this letter, Denise successfully sued Fleet Mortgage, Equifax, Experian and TransUnion and won a substantial sum of money. Her goal was not only to clear her credit report, but to change the Fair Credit Reporting Act, and we think she may have actually influenced the FCRA reforms.\nDenise's letter has not been modified or edited in any way.\n* * *\n_In 1988 we took out a Mortgage with a Bank. Upon settling a dispute, at this time in 1994, my husband and I paid off this mortgage, a mortgage of which we never missed a payment nor have we ever been late in making a payment. We received the Discharge of the Mortgage, which was promptly, duly recorded in the appropriate Registry of Deeds. Approximately 1 year later we were contacted via telephone and mail that we would be foreclosed on if this same mortgage (that was paid off) was not brought up to date as they alleged we owed three months payments. I contacted Sen. Rosenberg, whom at that time was the Chairman of the Banking Commission, who in return contacted the Legislative Banking Liaison to contact this bank to get this straightened out._\n_I then received a letter from the bank telling me that they were correcting their error and their computers to reflect it was their error and forwarding notices to all appropriate credit bureaus. More than a year or more lately this bank was sold to another National bank._\n_Several months later, While my husband and I were in Florida we attempted to co-sign a car for my stepson. We were told that we had exceptionally good credit except for a \"mortgage write-off\" to this same particular large bank. To our shock we had to explain we never had a write-off. Upon returning home I contacted the bank immediately and received notice faxed back which stated \"Bank error\" correcting this erroneous information and said they were faxing to all credit bureaus. We again thought it must be finally corrected and finally over._\n_Months later we tried to co-sign for a car for my daughter. To our horror, amazingly, again the same scenario happened. Turned down for \"mortgage Write-off\"! I immediately contacted the bank representative that had sent me the last letter and he told me it was NOT their fault that they had wiped my name out of their system and that it had been corrected. I disputed reports with the credit bureaus and bank in writing insisting that they review my documentation (i.e. Mortgage discharge) and delete the inappropriately re-inserted erroneous information and reflect my dispute._\n_Approximately, in June of 1997 my husband answered an offer for free gas if he applied for a BP Gas credit card. He applied. Our incredible response was \"Turned down for mortgage write off\". When I received the notice I immediately contacted the bank rep. once again and was told in no uncertain terms, NOT to contact him again, as he was not responsible for the erroneous information! I wrote for credit reports and found again not only had the bank re-reported but also they had added an additional \"Mortgage write-off \" which had reflected another account number and they unconscionably had inserted and reflected alleged actual dates in 1996 they claimed were 90-day late payments (i.e. March 1996, 90 days late and October 1996, 90 days late)._\n_At this point it implied we had two mortgage write off's to this particular bank with two different account numbers and several 90-day late payments on each._\n_More re-investigations and disputes were done and one credit bureau indicated they corrected and removed it off our report. One bureau sent a letter back stating \"after our investigation with the furnisher we found the information to be correct\". Incredibly they only removed the additional, duplicated mortgage write-off which contained a different account number! More disputes and re-investigations with hopes this would forever and finally be corrected._\n_On or about August, 1998 we received a demand letter from a collection company who stated they \"purchased\" our mortgage \"debt\" from this bank and they were demanding over $21,000 plus accrued interest. We were horrified. We disputed the erroneous information over the telephone and in writing and we continued to receive notices that demanded payment and indications they would \"take any available remedies to collect this debt\". During one phone conversation they stated they had requested a second investigation from the furnisher because the bank never responded within the required time limits imposed on them by law and they still had not responded to their first request. In fact, the women their told me that if what I was telling her was true, they by law should not be reporting this information, should not be contacting us and they never should not have \"sold\" them this non-existing debt._\n_To my shear terror again, when I received new credit reports, this new Collection company was now additionally listed on our reports as bad debt, in collections and reflected another mortgage write off. At this time, being emotionally and physically drained, I went to an attorney, as I could no longer handle the enormous anxiety and emotional distress. This whole nightmare has taken its toll on both my husband and myself._\n_What I learned next was equally as frustrating and overwhelmingly terrifying. I learned that even though the congressional purpose behind the Fair Credit Reporting Act (FCRA) Statute was to ensure that consumers were protected from inaccurate credit reporting, it's amendments have caused the opposite effect! Section 623, as amended specifically bars consumers from suing furnishers of information and only allows enforcement of the statutes regulations by the Attorney Generals office and the Fair Trade Commission. Upon contacting both offices I was told to contact and attorney, as they could not handle individual complaints only class action cases._\n_After exhausting my ability to get the furnisher of this information or the credit bureaus to listen to me and take corrective measures to prevent further damage to our credit reputation, I find I am forced into expensive litigation against 5 major corporation. The laws that are supposed to protect consumers apparently have huge gaping loopholes that the paid bank lobbyists apparently were successful at including in the FCRA making it impossible for consumers to obtain the intended protection._\n_My attorney sent the bank a Massachusetts Chapter 93A letter (unfair and deceptive practices) in November putting this bank on notice that they had 30 days to respond and demanding them to clean up our credit. Their written reply received back stated our credit \"has been cleared up and has been cleared up since mid December\". I have a letter dated Jan. 9th, 1999 where my husband was again humiliated and turned down for a lower rate credit card even though we have exceptional credit other than this erroneous information. Incredulously, even though they had been properly put on notice in November that their errors were continuing to effect our reputation, unconscionably in Jan, 1999 they had not taken any effective measures to correct their actions. Further, our latest credit report dated January 19, 1999 showed their errors were compounded._\n_On Jan. 29, 1999, we received the credit report update requested. Not only did it still reflect the incorrect derogatory information and the bank's \"mortgage write offs\" but it now included an inquiry from this bank who had apparently requested a copy of our credit report without our permission and without a permissible purpose. They incredibly and recklessly reported their purpose for obtaining our report as \"collection purposes\"! We were mortified, humiliated, and shocked that this bank would disregard our rights yet again. We felt further victimized with two additionally unnecessary inquires (the bank and credit card company) which not only affects our credit history but of equal importance, our credit \"Risk Score\" for future loans and interest rates. Scores are calculated based on inquires as well as your good\/bad credit history. We had already supplied them the info they needed to correct this information. They did not, have a need to request a credit report especially under false and misleading pretenses and should have known this would negatively impact our credit._\n_By our attempting to obtain a loan or credit cards under these circumstances it only compounds the problem by further damaging our credit due to the fact that our credit reports will continue to acquire additional inquires and therefore further lower our credit rating! We have been paying higher interest rates on our current credit cards due to their errors and can not obtain nor consolidate to a lower interest rate loan or credit card until they correct and notify all companies and credit bureaus involved._\n_Our only option now is forced litigation against the bank, Collection Company and the three credit bureaus. I should not be forced into expensive litigation and endure their acts of defamation when we are innocent consumers that have done nothing wrong. We are trying to gain the attention of the legislators to correct the laws that were created to protect us from the effects of inaccurate credit reporting and hold furnishers accountable for their willful and negligent actions that ruin our reputations. The FCRA says we can sue credit bureaus but not the furnishers, yet it is the furnishers that provide and report the inaccurate information. The credit Bureaus blame the banks and the banks blame the credit bureaus and the consumers are put in the position of having to prove their innocence and defend their destroyed reputations._\n_The congressional purpose of the FCRA is to protect us from this egregious behavior yet they take away our access to the courts and our right to sue \"furnishers\". The FCRA should, at the very least, should delineate penalties and fines when they do not adhere to the regulations. We are totally innocent yet we have to now endure long, expensive litigation against 5 large corporations just to receive what all consumers should expect and deserve accurate credit reporting._\n_I am committed to changing the FCRA by getting Congress to hear the pleas of the consumers and to raise consumer awareness to the injustice of the Fair Credit Reporting Act. If you can help me with this endeavor, I would be very grateful._\n_Thanks and Best Regards,  \nDenise Richardson_ END
 TITLE: How Does a Collection Get on Your Credit Report CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: March 17, 2017_\nIf you are like thousands of other consumers, you might have recently reviewed your credit report because you wanted to see why your credit score was so low. That was when you noticed there are collections noted. Turns out you missed a few payments because you lost your job and you were tight on money. But how did these accounts turn up now belonging to a collection agency and how can you get them off of your credit report?\nWhat is a Collection?\n---------------------\nA collection account is the term used to describe a person's loan or debt which has been submitted to a collection agency through a creditor. The collection account normally appears on the credit report of that person and will be on that report for seven years. The collection contains information about both the original creditor and the collection agency.\nWhen Does a Debt Go to a Collection Agency?\n-------------------------------------------\nTypically, credit card debts may be turned over to a collection agency 180 days after the debt is owed. In the case of medical collections, some hospitals turn medical bills over for collections immediately. Collection agencies begin collection efforts right after the account has been written off by the creditor. This debt is not only reported as a collection but it is also being reported by the original creditor as a charge-off. The collection agency reports a new account under their name as a 3rd party collection account.\nCan You Remove a Collection From Your Credit Report?\n----------------------------------------------------\nAfter this delinquent account went to a collection agency, you probably started getting bombarded with phone calls at all hours of the day. According to the Fair Debt Collection Practices Act, collection agencies are bound by certain rules and regulations on how they can go about collecting on this debt. Read our article on Collection Agency Harassment - What Are Your Rights to see if you have grounds to file a complaint.\nBut, let's say you have talked to the collection agency and they are willing to work with you on paying off this collection account. When it is paid in full, the new status on your credit report will be \"Paid Collection.\" This collection will remain on your credit report for seven years which does not help your credit score. The impact on your score does lessen as time passes but it will be seven years until it comes off your report.\nHelpful Tips Regarding Collections\n----------------------------------\nThroughout this website, there are numerous articles regarding collections and collection agencies. Our best advice is to pay your bills on time and avoid an account from going into collections. But we know there are circumstances beyond your control and sometimes you have no choice but to let an account become seriously delinquent. If this happens to you, fear not, we have a lot of great articles to help you get through this difficult time. Such as:\n*   Dealing with Collection Agencies — Using debt validation as a way to remove a collection.\n*   Five Methods of Dealing With Collections — We have five methods for you to use when dealing with collection agencies.\n*   Pay for a Delete — Removing a collection from your report by paying it off.\n*   What Are My Rights Regarding Collection Agencies? — Learn what collection agencies can and can not do when trying to collect on a debt. END
 TITLE: What is a Charge-Off on Your Credit Report CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: March 18, 2017_\nMany people erroneously think when a debt has been charged-off, that it's been cancelled by the creditor. We hate to be the ones to break it to you but this is not true and you are still responsible for paying off the debt. Companies, including creditors and lenders, have profits and losses every year and they make money from profits and lose money from losses. When a creditor charges-off your account, it's declaring your debt as a loss for the company.\nWhat is a Charge-Off?\n---------------------\nThe term charge-off is used in the accounting of assets for a particular company, i.e. the credit card company. A bank initially considers your debt to be an asset but if you fall behind on your payments, now this asset becomes a liability. So, what the bank will do then is charge-off part or all of your loan from its books.\nWhen this happens, a report goes out to the credit bureaus which then gets incorporated into your credit history and then into your credit score. A loan marked as a charge-off will hurt your credit score and will remain on your credit report for seven years.\nIs a Charge-Off Bad?\n--------------------\nEven if these companies aren't actively trying to collect from you, _these debts are still owed by you to the company_. If you refinance your house or apply for a loan, most mortgage companies will make you pay off these debts. The reason is that these debts can be turned into a lien against your property. Liens matter to a mortgage company for a couple of reasons:\n1.  When you sell your home, the monies owed against a lien (plus interest) must be paid off to clear your title.\n2.  Liens are in a higher position than a mortgage, meaning they get paid off before the mortgage company gets its money. If the mortgage company has to foreclose and you have lots of liens on your home plus a mortgage, the mortgage company potentially could lose thousands of dollars.\n3.  Just because these debts are charged off doesn't mean that the creditor won't come after you later. Creditors have the right to sue you and win a judgment in court until the statute of limitations runs out.\nHowever, if you're never going to buy a home, or at least not for 7 more years (that's when the profit and losses will drop off your credit report), it won't affect you, except for having bad credit. If you buy a car, you won't be asked to pay these debts off, or any thing other than real estate. Again, charge offs are almost as bad as having a bankruptcy, plus you still owe the money.\nHow to Remove a Charge-Off\n--------------------------\nFuture creditors and lenders take charge-offs seriously, so it's in your best interest to remove charge-offs from your credit report. Debt negotiation is your best tactic for reducing the effects of a charged-off account.\n*   **Talk to the Creditor.** To remove a charge-off, you should contact the original creditor NOT the debt collector. You want to convince the creditor to remove the charge-off from your credit report in exchange for payment.\n*   **Get the Agreement in Writing.** When the creditor agrees to remove the charge-off from your credit report, get the agreement in writing. Either on company letterhead with the all the info of the agreement on it as well as the person you make the agreement with. Or, you can send them a letter with all the terms of the agreement on it. Do not mail payment until the agreement is signed by you and the representative for the creditor.\n*   **What if There is No Agreement.** If you and the creditor can not come to an agreement, just wait out the 7 years and it will come off or you can file for bankruptcy.\nBankruptcy, although not to be undertaken lightly, is not a terrible option if your debts are out of control. If you keep your credit clean and open three new charge accounts (even gas cards), you can get an A paper (the best rates and terms) loan in 2 years. See our bankruptcy faqs for more information. END
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 TITLE: How Long Will Negative Items Remain on a Credit Report CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: March 17, 2017_\nWe assume you're asking this question because you recently reviewed your credit report only to find quite a few negative items listed on it. These negative items are dragging your credit score down and you want to know how long these are going to be listed on your report.\nIt does depend on the type of negative information but here is a breakdown of how long different types of negative information will remain on your credit report:\n*   Late Payments: 7 years\n*   Bankruptcy: 7 years for completed Chapter 13 bankruptcy and 10 years for Chapter 7 bankruptcy.\n*   Foreclosures: 7 years\n*   Collections: Generally 7 years, depending on the age of the debt being collected.\n*   Public Records: Generally 7 years, although unpaid tax liens can remain indefinitely.\nExceptions to Some Negative Listings\n------------------------------------\nHere are some exceptions:\n*   Bankruptcy information can be reported for 10 years for Chapter 7 bankruptcy.\n*   Information reported because of an application for a job with a salary of more than $20,000 has no time limitation.\n*   Information reported because of an application for more than $50,000 worth of credit or life insurance has no time limitation.\n*   Information concerning a lawsuit or a judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer.\n*   Default information concerning U.S. Government insured or guaranteed student loans can be reported for seven years after certain guarantor actions.\n*   Tax liens stay on seven years from the date PAID.\nRules to Know When Dealing With Negative Information on Your Credit Report\n--------------------------------------------------------------------------\nSome other rules to keep in mind:\n*   The statute of limitations has **nothing** to do with the length of time something can stay on your credit report, they are two TOTALLY separate things. Again, there is absolutely NO relationship.\n*   The length of time a negative mark can stay on your credit report _starts from the time you were late or the late payment went into collection, not from the last time you made a payment on the account._ Some collection agencies update their reporting status on you to keep the account active with the bureaus to extend the time the account appears on your report. Very crafty and underhanded of them, because most often the account is updated and the period of time the account is active appears to be extended. This is illegal and you can challenge this. If you do, bureaus will correctly remove it seven years from origination. Period. In other words, paying a collection will not keep it on your credit report for a longer period of time. END
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 TITLE: Risk Factor Reason Codes Determine Your Credit Worthiness CONTENT: Risk Factor Reason Codes — What They Mean on Your Credit Report\n---------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 18, 2017_\nWhen you apply for a loan or a credit card, the lender will run a credit report check on you to determine your credit worthiness. If they decide that you're too great a risk for a loan or credit card, they'll send you a letter in the mail letting you know that you've been rejected. On the letter, they'll list the bureau they pulled your credit report from (Equifax, TransUnion or Experian) as well as the risk factor reason codes for the risks you pose. The risk codes will be listed in the order of importance — higher up on the list in your letter, the more significant.\nBesides the three main credit bureaus having their own risk factor codes, FICO NextGen has come out with a long list of codes as well. There are well over 150 FICO codes so we have not listed them all out. Below, we have integrated the FICO NextGen codes into the table below with the Equifax, TransUnion and Experian codes.\n**EQ** stands for Equifax, **TU** stands for TransUnion, **EX** stands for Experian, **FICO** stands for FICO NextGen\n**Risk Reasons**\n**EQ**\n**TU**\n**EX**\n**FICO**\nAmount owed on accounts is too high\n1\n1\n1\nA3\nLevel of delinquency on accounts\n2\n2\n2\nD6\nToo few bank revolving accounts\n3\nn\/a\n3\nR4\nToo many bank or national revolving accounts\n4\nn\/a\n4\nT2\nToo many accounts with balances\n5\n5\n5\nT1\nToo many consumer finance company accounts\n6\n6\n6\nT3\nAccount payment history is too new to rate\n7\n7\n7\nA0\nToo many recent inquiries last 12 months\n8\n8\n8\nT5\nToo many accounts recently opened\n9\n9\n9\nT0\nProportion of balances to credit limits is too high on  \nbank revolving or other revolving accounts\n10\n10\n10\nP5\nAmount owed on revolving accounts is too high\n11\n11\n11\nB5\nLength of time revolving accounts have been established\n12\n12\n12\nJ8\nTime since delinquency is too recent or unknown\n13\n13\n13\nK0\nLength of time accounts have been established\n14\n14\n14\nJ0\nLack of recent bank revolving information\n15\n15\n15\nF5\nLack of recent revolving account information\n16\n16\n16\nG1\nNo recent non-mortgage balance information\n17\n17\n17\nG4\nNumber of accounts with delinquency\n18\n18\n18\nM1\nDate of last inquiry too recent\nn\/a\n19\nn\/a\nD1\nToo few accounts currently paid as agreed\n19\n27\n19\nR0\nTime since derogatory public record or collection is too short\n20\n20\n20\nK1\nAmount past due on accounts\n21\n21\n21\nB6\nSerious delinquency, derogatory public record or collection filed\n22\n22\n22\nNumber of bank or national revolving accounts with balances\n23\nn\/a\n23\nM6\nNo recent revolving balances\n24\n24\n24\nG6\nLength of time installment loans have been established\n25\nn\/a\n25\nJ4\nNumber of revolving accounts\n26\n26\n26\nN6\nNumber of established accounts\n28\n28\n28\nN2\nNo recent bankcard balances\nn\/a\n29\n29\nG3\nTime since most recent account opening too short\n30\n30\n30\nK2\nToo few accounts with recent payment information\n31\nn\/a\n31\nR2\nLack of recent installment loan information\n32\n4\n32\nF7\nProportion of loan balances to loan amounts is too high\n33\n3\n33\nP9\nAmount owed on delinquent accounts\n34\n31\n34\nA6\nLength of time open installment loans have been established\nn\/a\nn\/a\n36\nJ6\nNumber of consumer finance company accounts established relative to length of consumer finance history\nn\/a\nn\/a\n37\nN0\nSerious delinquency and public record or collection filed\n38\n38\n38\nD8\nSerious delinquency\n39\n39\n39\nD7\nDerogatory public record or collection filed\n40\n40\n40\nD4\nPayments due on accounts\nn\/a\nn\/a\n46\nX0\nLength of time consumer finance company loans have been established\nn\/a\n98\nn\/a\nJ3\nLack of recent auto finance loan information\n98\nn\/a\nn\/a\nF3\nLack of recent auto loan information\nn\/a\n97\n98\nF4\nLack of recent consumer finance company account information\n99\n99\n99\nF6 END
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 TITLE: Other Credit Bureaus - ChexSystems, ChoicePoint, LexisNexis CONTENT: Who Are the Other Credit Reporting Agencies?\n--------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 17, 2017_\nIn addition to the three big credit reporting agencies — Experian, Equifax, and TransUnion — the FCRA also classifies dozens of other information gathering companies as \"nationwide specialty consumer reporting agencies\" which help produce individual consumer reports. These other agencies can specialize in medical records or payments, residential history, check writing history, employment history, and insurance claims. These nationwide specialty agencies sell their information to the credit bureaus and these bureaus put all of this information together into one comprehensive credit report.\nBesides your paying history, these other items are listed in your credit report and get factored into your credit score. There is no way the main credit bureaus could obtain all of this information which is why these specialized companies were started. The credit bureaus gather this information on you through data mining and sharing of information from numerous other databases which contain personal sensitive information. For instance, public records found on your credit report come directly from LexisNexis and Choicepoint.\nJust remember, all of the following databases are considered credit reporting databases under the Fair Credit Reporting Act (FCRA), and as such are required to give you a copy of your information, so you can check for errors.\n* * *\nHere is the contact information for the big three credit bureaus, Experian, Equifax and TransUnion.\n* * *\nOther Credit Bureaus\n--------------------\nInnovis\nInnovis Consumer Assistance  \nP.O. Box 1358  \nColumbus, OH 43216-1358\nRead our article about Innovis.\nLexisNexis\nThey are a one stop shop for several databases of personal information and is in a category all its own. Types of personal databases it owns:\n1) Auto Insurance Claim History  \n2) Home Insurance Claim History  \n3) Tenant History  \n4) Employment history\n* * *\n### Public Records - Judgments, Bankruptcies, and Tax Liens\nLexis-Nexis Public Records\/Hogan  \n1900 N.W. Expressway  \nSuite 1600  \nOklahoma City, OK 73118  \n(405) 302-6954  \nFax: (405) 302-6902\nLakeside Information Resources (Also doing business as Lombard Information Resources) No website.\nThomson Corporation - Similar to LexisNexis  \nwww.thomson.com\n* * *\n### Employment\nLexisNexis\nThe Work Number, a service of St.Louis-based Talx (recently acquired by Experian). To get your free copy of the information that Talx has on file in The Work Number and also dispute any inaccuracies on it.\nTALX  \n11432 Lackland  \nSt. Louis, MO 63146  \n(314) 214-7000  \nFax: (314) 214-7588\nNote: Hundreds of companies are now engaged in employment background screening. The National Association of Professional Background Screeners lists over 300 member background check companies. www.napbs.com\n* * *\n### Utilities\nNational Consumer Telecom & Utilities Exchange (NCTUE) - www.nctde.com\n* * *\n### Insurance\nwww.iso.com Offers Auto and Home Insurance claim reporting. Because you receive one free report per year, check Auto and Home Insurance claims yearly if you have filed insurance claims within the last 5 years. If you have not filed a claim, check once to verify that there is no derogatory information then check every 4 to 7 years thereafter, primarily to alert yourself to ID Theft or the potential for inaccurate information.\n* * *\n### Check Writing and Bank Databases\nChexSystems\nCheckFraud\nTelecheck\n* * *\n### Tenant History Credit Bureaus\nwww.tenanthistorywebsite.org\/\nFirst Advantage SafeRent (888) 333-2413\nTenant Data Services\n* * *\n### Medical Information Bureau\nThe Medical Information Bureau (MIB) is a nationwide specialty consumer reporting agency that compiles and maintains records concerning individual life, health, long-term care, and disability insurance. Generally, you will have an MIB file only if you have applied for one of these insurance products within the last seven years, and only if you've applied as an individual rather than as a member of a group.\nwww.mib.com\/html\/request\\_your\\_record.html  \ntoll-free number for disclosure is (866) 692-6901  \n(TTY (866) 346-3642 for hearing impaired)  \nIf you have applied for a claim under life, health, medical or disability insurance, your information is probably in one of the medical databases above.\n### Other Health\n**Prescription Drug Purchase History Reports**\nOptumInsight\nMilliman IntelliScript\n* * *\n### Purchase Returns History Reports\nRetail Equation END
 TITLE: Spot the Red Flags On Your Credit Report CONTENT: Red Flags to Look for on Your Credit Report\n-------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 17, 2017_\nWhen you're deep in debt and barely making ends meet, something has to give. Before you miss a monthly payment or start foreclosure or bankruptcy proceedings, review the list below. The last thing you want to do is compound debt problems with credit problems that only increase the stress of your financial life. Look at your budget and cut down where you can so that you can avoid any or all of the below listed possible red flags on your credit report.\nLook for Late Payments\n----------------------\nA missed due date now and then happens to the best of us, but late payments stay on your credit report for up to 7 years, so avoid them at all cost. Though it's always preferable to pay more than the minimum, it's vastly more important that your report shows an on-time payment than a lower balance.\nSome ways to avoid late payments:\n*   Set a due-date reminder on a calendar.\n*   Send your payment as soon as you receive your statement.\n*   Sign up for online e-mail alerts to remind you when your bill is due.\nLook for Charge Offs\n--------------------\nIf you have not made a payment in over 180 days, your creditor may charge off your account. This enables the creditor to qualify for a tax exemption for the debt you are not paying back. However, you are still legally responsible for the debt, at least until the statute of limitations runs out in your state, meaning that the creditor may continue collection action. Charge offs can stay on your credit report for 7 years.\nLook for Debt Collection Agencies\n---------------------------------\nCreditors who charge off your debt may continue collection action on their own, or they may sell your debt to a collection agency that will pick up where the original creditor left off. Debt collection activity can stay on your credit report for 7 years.\nMore Items to Look Out For\n--------------------------\n### Foreclosure\nAs millions of Americans have learned the hard way in recent years, foreclosure on a home can turn your world upside down. It's not only a devastating experience to be forced out of your home, but you are doubly-devastated by the negative listing that can stay on your credit report for 7 years.\n### Bankruptcy\nThe appeal of bankruptcy is understandable, as it seems a once-in-a-lifetime way of wiping the slate clean and starting your credit from scratch. But keep in mind that while there are a number of types of debt that may be included in bankruptcy, from home and auto loans, to credit cards and medical bills, there are plenty of other debts that do not qualify, such as student loans and federal income tax. And even if yours is only the type of debt that does qualify, there is always the negative listing of bankruptcy, which can stay on your credit report for 7 to 10 years.\n### Tax Liens\nIf you do not pay your taxes, you can pretty much bet on getting slapped with a tax lien. This type of negative listing not only can stay on your report for 7 years, but it's a time period that doesn't start until the date the tax lien paid. In other words, if you never pay these taxes or make settlement arrangements, tax liens can stay on your report indefinitely.\n### Lawsuits and Judgments\nThough it is rare, creditors can and do sue borrowers for debt owed. These negative listings can stay on your credit report for 7 years, while at the same time the judgment requires you to pay the debt anyway.\nWhether you're rebuilding your credit, or simply keeping it clean, it is imperative you monitor your credit reports. Through AnnualCreditReport.com, you can request one free copy per year from all three major credit reporting agencies — Experian, TransUnion, and Equifax. Get a copy from all three, as listings on one report may not be included in another, and you never know from which agency potential creditors are pulling from.\nIf any or all of these negative listings have made their way into your credit report, do not despair. While it's certainly not easy rebuilding credit, it can be done with the right combination of information, initiative and patience. END
 TITLE: Credit Reporting Agencies - Experian, Equifax, TransUnion CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: March 17, 2017_\nCredit reporting agencies, also known as credit bureaus, are institutions that collect all the information regarding your credit history to create an in-depth credit report which is evaluated and given a three digit credit score. Years ago, consumers were in the dark as to why they were denied a mortgage loan or a low interest credit card. But not any longer.\nIn 1971, the Fair Credit Reporting Act (FCRA) gave consumers access to their credit reports and credit scores from each of the three national credit reporting agencies; Experian, Equifax, and TransUnion. It was amended in 1997, and again with the Fair and Accurate Credit Transactions (FACT) Act of 2003, which provided stronger protections for consumers by increasing the responsibility of the credit bureaus to investigate consumer disputes.\n**What is a Credit Reporting Agency?**\n--------------------------------------\nThere are three main credit bureaus — Experian, Equifax, and TransUnion, all with national databases. There is also a fourth one, called Innovis. Most credit grantors report to one or more of them. In general, the credit reporting agencies don't pass information back and forth to each other. So you actually have at least three credit histories, not one.\nThere are also local credit reporting agencies and reporting agencies. They're nowhere near as widespread as the big three. However, they are also subject to the Fair Credit Reporting Act, so anything said here applies to them, too.\n**Who Assigns My Credit Rating?**\n---------------------------------\nEach credit reporting agency collects information from banks, finance companies, department stores, taxing authorities, landlords, and other credit grantors and keeps the information in your file. The file is supposed to be an objective record of your credit history, in essence a sorted copy of information furnished to the credit reporting agency by companies you have done business with on credit.\nThe credit history shows your name, address, social security number and birth date. It also lists all of your open accounts, with balances and credit limits, and whether you pay them on time or not. It will show whether any of these accounts have been turned over for collection, listed as a judgment, if you have any or tax liens, and so on. It may also include, your employer, position, income, your former address and former employer, your spouse's name, and whether you rent or own your home.\nThe credit bureaus use all of this information to come up with your credit score, a calculation so complex that there is no exact formula to print. Credit grantors who pay extra, about 30 percent of them, can see your credit score in addition to the factual information. There is a lot of emphasis on credit scoring lately. Consumers were previously prohibited from seeing their credit scores until Fair Isaac began allowing consumers to see their scores around 2001. However, it will cost extra if you wish to see your score when you order your credit report.\nHow Long Does it Take For an Item to Show Up on a Credit Report?\n----------------------------------------------------------------\nSuppose you've just paid off a large loan and you're applying for a car loan or a mortgage. It would be nice to know that the lender who pulls your report will see that the old loan was paid off.\nHowever, credit grantors' contracts with credit reporting agencies may or may not specify a timetable for grantors to report new information to the bureau. If the credit grantors are tardy, there's not much the credit reporting agency can or will do, since those same credit grantors are also the customers of the credit reporting agency. Also, credit reporting agencies may gather information directly from public records, on any schedule they please.\nThe answer to this question, as a practical matter, is that there is no time limit for posting information. In fact, you don't have a legal right to insist on any report being made at all — you can get false items corrected, but you can't legally insist on omitted information being added. You can certainly provide the credit grantor with documents that show the loan has been paid in full.\n**How Does a Lender Decide Whether or Not to Approve a Loan?**\n--------------------------------------------------------------\nWhen you apply for a mortgage, credit card, or other loans, the fine print on the application gives the lender permission to check your credit history. The lender usually requests a credit report from one or all of the big three credit reporting agencies. The credit report will contain your credit score, and unfortunately, this is what most lenders consider the most. If your score is marginal, the lender may look at your actual report in addition to the score before deciding whether to grant you the credit you seek.\nIn general, lenders look at your total outstanding loans. They also look at your credit limits to see how far in debt you could go if you max out with your existing accounts. Naturally, they are concerned with your record of delinquencies, accounts paid satisfactorily, and anything else that suggests how good a credit risk you might be.\nWhere do the credit reporting agencies get the information on your credit report? Much of it is reported to them by lenders. Bureaus may also obtain bankruptcy, judgment, repossession, and delinquent taxes from public records.\n### **Is Applying for as Many Credit Cards as Possible a Good Idea?**\nThis may create a problem. Actually, is may create two problems for you. Many lenders look at your total credit limit on each account to determine whether they want to give you additional credit. If you have ten Visa cards with a $5,000 limit on each, and five have a zero balance and the other five have $100 each, your actual debt is $500. But some lenders may evaluate you on the basis of $50,000 of debt because you could go out tomorrow and charge that much.\nMerely applying for many accounts can also create a problem. You may want to read our article on how applying for loans affects your credit score.\n### **What Can You Do if You Were Denied a Loan or Credit Card?**\nIf the lender's decision was based on a report from a credit reporting agency, by law the lender must tell you this and give you the name and address of the credit reporting agency. This is true even if the credit report was only one factor in the decision.\nWrite to the credit reporting agency. State that you were denied credit, insurance, or employment by (name) on (date) based on a report from them, and you want a copy of your report. By law the credit reporting agency must give you a free copy if you request it within 30 days after you were turned down based on a report from that credit reporting agency. (It doesn't matter whether you have already received other free reports.) Also, free reports are currently available under certain circumstances at certain intervals from some of the credit reporting agency. In some states, the bureaus are required to give you one free report a year. The Fair and Accurate Credit Transactions (FACT) Act of 2003 allows everyone, in every state, to get one free report from each agency each year. For more information on how to get your reports for free or for a fee, read our article on credit report offers.\n### **One Lender Denied Your Loan But Another One Said it Was Fine. How Can This Be?**\nThere are two possible reasons. First, they may have been looking at reports from two different credit reporting agencies. A lender where you had a problem might have sent a report to one of those credit bureaus but not the other. Second, lenders have different criteria. Even when looking at the same report, they might reach different decisions.\n### **Can You Get a Copy of Your Credit Report Prior to Applying For a Loan?**\nYou certainly can and it is highly recommended that you do. Refer to our article Getting and Reading Your Credit Report, for further information. Here is some more information on how to get your credit report by mail and online.\n### **How Long do Negative Items Stay in On My Report?**\nRead our article How Long Do Negative Items Stay on Your Credit Report. END
 TITLE: Check Your Credit Reports Regularly CONTENT: Worse Case Scenarios When You Don't Check Your Credit Reports\n-------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 17, 2017_\nWe are busy people in these busy times, so the last thing any of us want or need is one more thing to do. But there are some things that simply cannot be sacrificed, and checking your credit reports is among them. Yes, it takes time and effort, but it's minuscule compared to the time and money it could cost you allowing fraudulent activity and\/or negative listings to accumulate unchecked on your credit reports. Just consider these worst-case scenarios.\n### If you don't check your credit reports, you may not discover you are a victim of fraud.\nIf and when thieves steal your identity, they may use your personal information to open credit lines in your name. These accounts will appear on your credit reports, which isn't the worst of it. If they max out the balance, your credit utilization ratio suffers. If they make late payments, or the account is sent to collections or charged off, your credit score takes a huge hit. Your credit also gets points against it for every inquiry made to your credit, for every credit application submitted by the identity thief.\n### **If you don't check your credit reports, you may not discover erroneous negative listings.**\nCredit bureaus are not infallible. Quite the opposite, in fact. Consumers discover errors on their credit reports all the time. It may show late payments on an account you've always paid on time. It may show a high balance on an account you've paid down to zero. It may show an account in collections that you have since paid off. Your credit score takes a big hit under any one of these circumstances.\n### **If you don't check your credit reports, you may not discover negative listings that are disputable.**\nIf you have negative listings on your credit report, you have the legal right to dispute their legitimacy, erroneous or not. This is an especially effective strategy for old debt that has been sold from the original credit to a collection agency. Rarely do the necessary documents of proof get included with the sale. And if they cannot prove you owe the debt, then you are not legally obligated to pay it. Not only that, but the negative listing must be removed from your reports.\n### If you haven't checked your credit reports in more than a year, do it now.\nYou are entitled to one free credit report from each of the three major credit reporting bureaus. Be sure to get a copy from all three, as what gets reported to one may not get reported to another.\nOnce you have your credit reports in front of you, here is what you need to look for:\n1.  **Fraudulent credit activity.** If discovered, contact the credit bureaus and place a fraud alert on your reports. Then, contact the creditor's fraud department to notify them of the situation and close the account. File a report with your local police. And, finally, file a complaint with the FTC.\n2.  **Erroneous listings.** Write letters of dispute to the credit bureaus that reporting the erroneous listings. They then have 30 to 45 days to respond. If they are unable to find and provide proof of the negative listing, it must be removed from your reports.\n3.  **Negative listings.** Whether they are accurate or not, you have the legal right to dispute any negative listing on your credit report. Again, if the credit bureaus cannot find and provide proof of a debt, or any negative listing associated with it, said listing must be removed from your report. And, if the debt itself is in question, and unproven, you are not legally required to pay it.\nYou can request your free annual credit reports from Experian, TransUnion and Equifax through AnnualCreditReport.com. END
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 TITLE: Finding Possible Fraud on Your Credit Reports CONTENT: Signs of Fraud Revealed in Your Credit Report\n---------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 18, 2017_\nYou can't spot fraud on your credit reports if you don't check them. At a minimum, you should request a copy of your credit reports once a year from each of the credit reporting agencies — Experian, Equifax, and TransUnion. When going over your credit reports, leave no stone unturned. Skipping a section here or a listing there could mean, of course, missing a mistake on the part of your creditors, or worse, a sign of fraud. If you are unsure how to go about getting your credit reports, read this article on Credit Report FAQs or this article on How to Order Your Credit Reports.\n### Check the Personal Information Listed on Your Report\nAfter you get your credit report, make sure to check all the information that is listed for you. It is very important you check the following for accuracy:\n*   Are there any names listed that you have never gone by?\n*   Is the social security number listed not yours?\n*   Is there an address listed where you have never lived?\n*   Are there credit inquiries from lenders through which you never requested credit (promotional inquiries and credit reviews excluded)?\n*   Are there accounts listed that you have never opened?\nIf you answered yes to any one of those questions, you could be a victim of fraud. Immediately contact the credit reporting agencies and share with them your suspicions, requesting that a fraud alert be placed on your reports.\n### How to Report Fraud on Your Credit Report\nAs we stated above, if you suspect you might have found some fraudulent information on your credit report, it is imperative you contact the credit reporting agencies immediately. All three of the major credit reporting agencies have toll-free fraud alert hotlines. Here is the contact information:\n*   Experian: 1-888-EXPERIAN or 1-888-397-3742\n*   Equifax: 1-888-766-0008\n*   TransUnion: 1-800-680-7289\nFollow-up the phone call with a letter to each credit bureau restating the nature of the problem. Such as which name is not yours, the incorrect social security number that is listed, the address you never lived at, or the company that requested the credit inquiry. Giving the bureau as much detailed information as you can is best so there are no miscommunications regarding the fraudulent information.\nKeep in mind, of course, that sometimes credit inquiries we don't recognize turn out to be ones we did indeed authorize. The company listed as making the inquiry may be a third-party service used by the lender from whom we requested credit. Or it may be that we simply forget having authorized a credit check, a likely scenario considering that credit inquiries stay on our reports for up to two years' time.\nAlso, clerical errors are not uncommon on credit reports. They are quite common, in fact. It could simply be that you have been mixed up with someone who has a name similar to yours, for example, or that numbers have been transposed in your social security number.\nIf you find information on your credit files that appears to be wrong, don't immediately assume the worst. But do take suspicious activity on your credit reports seriously. Catching fraud early can save you time and money. END
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 TITLE: Learn How to Place a Fraud Alert on Your Credit Reports CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: June 30, 2017_\nIf you believe you have been a victim identity theft or fraud, you need to protect your credit. One option is placing a fraud alert on your credit reports through the three national credit bureaus — Equifax, Experian, and TransUnion. You will still be able to apply for new credit, but the alert will make it harder for thieves to open new accounts in your name. Do nothing and you could end up with fraudulent debts that don’t belong to you and damaged credit in need of repair.\n**How Fraud Alerts Work**\n-------------------------\nWhen you place a fraud alert on your credit reports, it’s a red flag to creditors that an identity thief may try and open a credit account in your name. So, if a creditor receives an application from you, they are supposed to contact you for verification — to be certain it is, indeed, you — before extending new credit. According to Equifax, this includes new credit accounts, as well as new cards or increased credit limits on existing accounts.\nThere are three types of fraud alerts, all of which are free to place and remove.\n### **Initial Fraud Alert**\nAn Initial Fraud Alert only stays on your credit reports for 90 days, but you can renew it indefinitely.\n1) Request the alert through one of the three national credit bureaus (they will notify the other two)\n2) Be prepared to provide the following information:\n*   Your name\n*   Social security number\n*   Date of birth\n*   Address\n*   Phone number\n3) Renew every 90 days, as needed\n### **Extended Fraud Alert**\nAn Extended Fraud Alert stays on your credit reports for 7 years. For this reason, the process for placing an Extended Fraud Alert on your credit reports is much more involved than that of an Initial Fraud Alert.\n1) File an Identity Theft Report\n2) Request the alert through one of the three national credit bureaus (they will notify the other two)\n3) Be prepared to provide:\n*   The same personal information listed above for the Initial Fraud Alert\n*   Proof of identification and current address\n*   Copy of your Identity Theft Report\nIn addition to the alert placed on your credit reports, your name will also be removed from prescreened credit and insurance offers for 5 years. Also, within 12 months of placing an Extended Fraud Alert on your credit reports, you are entitled to two free credit reports from Experian, Equifax, and TransUnion.\n### **Active Duty Alert**\nAn Active Duty Alert stays on your credit reports for 12 months. If you are an active-duty servicemember, this type of alert can help protect you from fraud during times of deployment.\n1) Request the alert through one of the three national credit bureaus (they will notify the other two)\n2) Be prepared to provide:\n*   The same personal information listed above for the Initial Fraud Alert\n*   Proof of identification\nIn addition to the alert placed on your credit reports, your name will also be removed from prescreened credit card offers for 2 years.\n**Warning About Fraud Alerts**\n------------------------------\nThere is the possibility that some creditors will not follow through on the fraud alert and will fail to contact you for verification.\n_\"While lenders and service providers are supposed to seek and obtain your approval before granting credit in your name if you have a fraud alert on your file,\"_ says _security expert Brian Krebs, \"_they’re not legally required to do this.\"\nAnd _Swiped_ author Adam Levin says: “A lot of lenders, regardless of what they’re supposed to do, don’t take the time to check…. A credit freeze isn’t a silver bullet, but it’s certainly better than a fraud alert.”\n### **Another Option: Credit Freeze**\nUnlike a fraud alert, a credit freeze:\n*   Prevents creditors from accessing your credit at all, an effective tool for preventing the opening of fraudulent accounts, as most creditors will not extend new credit without checking credit first\n*   Requires you to make the request through each of the credit bureaus separately\n*   May require a fee under certain circumstances\n*   Doesn’t allow you to have potential creditors check your credit; to do so, you will need to lift the freeze first\n[Learn more about credit freezes.](;utm_medium=social&utm_source=plus.google.com&utm_campaign=buffer)\n**Ready to Request a Fraud Alert?**\n-----------------------------------\nUse the online request forms at Experian, Equifax, and TransUnion END
 TITLE: How to Place a Security Freeze on Your Credit Information CONTENT: Placing a Security Freeze on Your Credit File\n---------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 17, 2017_\nA security freeze, sometimes known as a credit freeze, allows individuals the ability to control the release of their credit information to lenders or anyone trying to access their credit information. Consumers have the right, by law, to freeze, or lock the data the big three credit reporting agencies have on them. Thus, not allowing the credit bureaus to release any information until that person gives them permission to do so.\nWhy Would You Need a Security Freeze?\n-------------------------------------\nThe most common reason to do a security freeze on your credit information is because of identity theft. Placing a freeze on your credit is the most effective way to prevent financial identity theft, because having a freeze stops the issuing of new credit.\nEach year, 15 percent of ID theft cases are cases of new account origination - meaning - a criminal opens credit in another person's name. Putting a freeze on your credit, stops the thief dead in his tracks because he can not open up any more lines of credit. Hence, credit freezing should reduce the risk that loans or credit cards will be issued fraudulently.\n### Disadvantages to Freezing Your Credit\nCredit freezes do have some disadvantages, such as creating potential difficulties or delays when applying for a loan. Lenders require access to the borrower's credit report before issuing a loan in the borrower's name. If lenders cannot see the borrower's credit report, it is unlikely the lender will issue a loan.\nIf you are actively applying for credit, understand that the procedures involved in lifting a security freeze may slow your own application for credit. Plan ahead and lift a freeze, either completely if you are shopping around, or specifically for a certain creditor, a few days before actually applying for new credit. This way you will not encounter any unnecessary delays in getting your loan approved.\nIn order to effectively freeze access to your credit files, you must contact EACH OF THE THREE major credit bureaus, Equifax, Experian, and TransUnion, separately and request that a freeze be placed on your credit report. Once you make the request, the credit bureau must:\n1.  comply with your request within five business days;\n2.  send written confirmation of the freeze; and\n3.  include a personal identification number (PIN) or password in the written confirmation sent to you.\nThe security freeze will remain in place until you request that the freeze be removed, either temporarily or permanently. You must contact EACH bureau separately to remove the freeze and they must remove the freeze no later than three business days after receiving the request from you.\nEach state has it's own list of information required to submit the freeze and every state charges it's own fee to do so. Here are the links to each bureaus' site where the information on submitting a credit freeze can be found:\n*   TransUnion Credit Freeze\n*   Experian Credit Freeze Center\n*   Equifax Credit Freeze END
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 TITLE: CFPB Reports on the Credit Reporting System CONTENT: Summary of CFPB Report on the Credit Reporting System\n-----------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 18, 2017_\nIn December 2012, the Consumer Financial Protection Bureau (CFPB) published a white paper entitled _\"Key Dimensions and Processes in the U.S. Credit Reporting System: A Review of How the Nation's Largest Credit Bureaus Manage Consumer Data.\"_ Below is a summary of the CFPB's key findings of the three largest nationwide credit reporting agencies, or NCRAs, as they will be referenced from this point forward.\n### Experian, Equifax and TransUnion\nCollectively, the National Credit Reporting Agencies maintain credit files on over 200,000,000 adults and they receive information from approximately 10,000 data furnishers.\n### Furnishers of Credit Data\nOn a monthly basis, the NCRAs receive from furnishers information on over 1.3 billion consumer credit accounts or other trade lines. Furthermore, the 10 largest institutions furnishing credit information to each of the NCRAs account for more than half of all accounts in consumers' credit files. Retail and network-branded revolving credit cards account for nearly 60 percent of all trade lines.\n### Quality Control of Credit Data\nBefore accepting information, the NCRAs perform background and quality control checks on would-be-furnishers. Most furnishers, and all new furnishers, provide consumer credit information electronically to one or more of the NCRAs using a standardized format called Metro 2 developed by the Consumer Data Industry Association (CDIA). When data files are received, the NCRAs perform quality checks prior to adding the data to credit files.\n### Organization of Credit Data\nUpon receipt of data, it is organized via a \"matching\" process managed through unique data architectures. Matching is complicated by the absence of any objective, third party source of information, with complications arising from:\n*   Similarities in consumers' names and addresses - particularly among family members.\n*   Limitations, colloquial variations, and inaccuracies in the personally identifying information provided by consumers and furnishers when consumers first apply for credit products.\n### Credit Data Inaccuracies\nCredit data inaccuracies can occur when:\n1.  Consumers provide inaccurate data when applying for a loan.\n2.  The creditor who furnishes data to the credit bureau inputs consumer information to its systems inaccurately.\n3.  The NCRAs match information about a consumer from a particular data furnisher to the wrong individual consumer's file.\n4.  There are errors or lack of identifying information in government records.\n5.  Consumers are victims of identity fraud or identity theft.\n### Disputing Credit Data\nConsumers have the right to obtain a copy of their credit files and to receive notice of adverse actions involving credit reports, enabling them to dispute potentially inaccurate credit data:\n*   It's estimated that every year at least 40,000,000 consumers obtain a copy of their credit file from one or more of the NCRAs.\n*   Each year approximately 8 million consumers contact the NCRAs to initiate disputes on their credit reports.\n*   Of the 8 million contacts from consumers, there were between 32 and 38 million disputed items.\n_Collections_ - Every year, items reported by collection agencies have the highest dispute rates, averaging 1.1 percent of their total trade lines furnished. Of the disputes handled by the NCRAs, 40 percent of them can be linked to collections items.\n_eOscar_ \\- Since so many consumer disputes are received by the NCRAs each year, they are handling via an automated management system:\n*   eOSCAR automatically forwards consumer disputes to furnishers of the disputed data (with the exception of a small fraction of disputes handled by the NCRAs internally).\n*   One or two numeric codes indicate the nature of the dispute.\n*   About a quarter of disputes also include explanatory text.\n*   Documentation provided by consumers in support of their dispute is generally not forwarded on to furnishers.\n*   Furnishers are required to investigate the dispute and report back with findings to the NCRAs.\n*   15 percent of disputes are resolved internally by the NCRAs with no involvement by data furnishers.\n*   85 percent of disputes are forwarded to data furnishers through e-OSCAR.\n_Controversy_ - Critics suggest it is inappropriate and ineffective for furnishers of disputed data to verify its accuracy. After all, its their information from which the potentially inaccurate data originated. Thus, critics' advocacy of a system in which the NCRAs monitor and manage furnisher practices.\n### Conclusion\nWhile the measurement of credit report accuracy and the level and causes of inaccuracies present challenges, periodic measurement of credit report accuracy holds promise for establishing baseline accuracy levels and measuring improvements over time. END
 TITLE: Do You Have a Thin Credit File CONTENT: What Does it Mean to Have a Thin Credit File?\n---------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 17, 2017_\nThe majority of the articles found in our credit reports section of our website deal with topics such as; how to get your credit reports, how to read and understand your credit reports, and best of all, how to remove negative items found on your credit reports. But, what if you really don't have much information on your credit report? This is known as having a thin credit file. Not sure what that really means or how to get more good information on your credit file?  Then this is the article for you!\nWhat is a Thin Credit File?\n---------------------------\nFirst of all, a thin credit file means you may be new to the world of credit. Either you are young and just opened up your first credit card account, or you are new to this country, or you might be an older person who hasn't used any credit in a long, long time. If one of these scenarios fits you, you have what is called a thin credit file.\nLet's say you prefer not to borrow money or use credit and you pay for everything using cash. That type of financial outlook is fine for only so long. Because, if you are thinking of buying a home or maybe a car in the next year or so, you are going to need more in your credit file than just your name and address. These types of loans are going to require a more substantial credit history and as the saying goes, \"You need credit to get credit.\" A bank may be happy you are debt free, but they would also like to see that you are able to make timely monthly payments on outstanding debts and that you are a responsible borrower. So, here are some tips on how to build up your thin credit file.\nHow to Build Up a Thin Credit File \n-----------------------------------\nAs we already went over, if you are thinking of taking out an auto or home loan, you are going to need a good credit history and a good credit score. In order to generate a credit score, the absolute minimum you need in your credit file is a credit account that has been open for at least 6 months and a credit account that has been reporting to a major credit reporting agency. This means, if you have a secured credit card, you need to make sure your account activity is being reported to TransUnion, Equifax, or Experian. Not all secured cards report to the credit bureaus. On the flip side, if you have an unsecured credit card, chances are the issuing bank does report to the credit bureaus. If you are at all unsure if your credit card company is reporting your credit activity to one or more of the credit report agencies, call the issuing bank to make sure. Bottom line, choosing a credit card that reports to all three bureaus is best for credit building. \nAlong with credit cards, you can also \"thicken\" up your credit file by taking out a line of credit or a personal loan that has a short payback period. Make sure you make your monthly payments on time and you pay off this loan prior to applying for your home or car loan. Having some type of installment loan in your credit file goes a long way in boosting your credit score so long as you never have a late payment and you pay it off in the time period allotted. The best place to get an small installment loan is at a local credit union. \n### Possible Pitfalls When Building Up Your Thin Credit File\nBefore you start going full-throttle on building up your credit history, watch out for these pitfalls:\n*   On-time payments account for 35 percent of your credit score, so make sure you make all your monthly payments on time.\n*   Don't be in a rush to build up your credit. Applying for too many credit accounts all at once can hurt your credit — not help it. Motto here is \"slow and steady wins the race.\"\n*   Keep a tight rein on your spending. Don't max out your credit cards and keep your balances in check. Your goal is to keep your balance at 35 percent of your credit limit. (10 percent is optimal)\nKeep in mind, if you apply for new credit accounts, make sure to keep any old accounts active and open even if you have to make just one purchase a month. This provides the much needed account history, which is a vital part of your credit score.\n### Monitor the Progress of Building Your Credit File\nHopefully before you even started building up your credit file, you pulled your credit reports from all three bureaus. If not, it is imperative that you do so — this way you can track the progress of your credit building efforts. Some may not agree, but the best way to keep track of your efforts is to enroll in some type of credit monitoring program. There are a lot of different companies that provide this service so we have put together a list of companies we recommend for credit monitoring — many of which also provide you with a credit score.\nYou don't have to check your credit every day, but you should check it at least every few months. This way, you will know if your credit building efforts are paying off, or if you have to switch gears and try something else. If you follow our suggestions and monitor the progress of your credit file, in a year or more, you will be able to apply for a loan for a house or car. Your once thin credit file will be robust with a great credit history and an even better credit score. This is how you can put yourself in the driver's seat of an awesome car or sitting in the house of your dreams knowing you got the best loan available. END
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 TITLE: Remove Authorized Users on Credit Card and Credit Report CONTENT: What is Means to Be an Authorized User on a Credit Card\n-------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 17, 2017_\nOne of the most misunderstood areas of credit is when someone is an authorized user on credit card account. So it is no surprise that one of the most asked questions on our credit report discussion forum goes something like this: \"I am an authorized user on a credit account. Can I get this account listing off my credit report?\"  We first need to make sure everyone understands what an authorized user is and why would someone be one in the first place?  Only then can we address how to get this account removed from your credit report.\nWho is an Authorized User?\n--------------------------\nLet's say you have a child who is going off to college and you would like for him\/her to have a credit card to use. You can call up the bank and request this child be listed as an **authorized user** on this credit card. They will add this person to the account and they will issue a credit card in your child's name. The company does not use the credit score of the child but it does show up on the child's credit report. This is a good way for a parent, who has good credit, to help their child establish credit.\nWhy Would You Want to Remove an Authorized User?\n------------------------------------------------\nMaybe the parents had to file for bankruptcy and this account is showing up as a negative on the child's credit report. So, instead of helping their credit score, it is hurting it.\nChanges Regarding Authorized Users\n----------------------------------\nThere have been some changes regarding authorized users and how they are viewed by FICO. For more info, read these proposed changes to credit scoring which addresses authorized users.\nNot too long ago, we received this letter:\nI saw on a message board that it is illegal under the FCRA for the bureaus to report accounts on your report for which you are an authorized user. I am on my brother's two Capital One accounts as an AU and he has been delinquent on this account. They are refusing to take it off my report. Could you send me the section of the FCRA stating that this is illegal\/and or post to the site?\nAccording to Section 603 of the FCRA, the way I interpret it, only information on credit issued to a consumer is allowed. If you are an authorized user, you do not fall under these categories, you are not responsible for the debt and did not receive credit. An authorized user doesn't have credit on this account and it's only the signor that is responsible. So, in essence, if an account on which you are an authorized user shows up on your report, it would be someone else's credit (the signor on the account.) I've had lots of readers successfully challenge this to both the creditors and the bureaus, and have accounts in which they were authorized users removed.\n### FCRA Section 603\nDefinitions; rules of construction \\[15 U.S.C. ß 1681a\\] (what credit lines can be reported).\n**(l) Firm Offer of Credit or Insurance.** The term \"firm offer of credit or insurance\" means any offer of credit or insurance to a consumer that will be honored if the consumer is determined, based on information in a consumer report on the consumer, to meet the specific criteria used to select the consumer for the offer, except that the offer may be further conditioned on one or more of the following:\n*   The consumer being determined, based on information in the consumer's application for the credit or insurance, to meet specific criteria bearing on credit worthiness or insurability, as applicable, that are established  \n    (A) before selection of the consumer for the offer; and  \n    (B) for the purpose of determining whether to extend credit or insurance pursuant to the offer.\n**(2) Verification.**\n*   that the consumer continues to meet the specific criteria used to select the consumer for the offer, by using information in a consumer report on the consumer, information in the consumer's application for the credit or insurance, or other information bearing on the credit worthiness or insurability of the consumer; or\n*   of the information in the consumer's application for the credit or insurance, to determine that the consumer meets the specific criteria bearing on credit worthiness or insurability.\n**(3) The consumer furnishing any collateral that is a requirement for the extension of the credit or insurance that was**\n*   established before selection of the consumer for the offer of credit or insurance; and\n*   disclosed to the consumer in the offer of credit or insurance. END
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 TITLE: Who Can Legally Access Your Credit Reports CONTENT: Who Can Legally Pull Your Credit Report?\n----------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 21, 2017_\nFortunately, there are laws that regulate who can access your credit report. The last thing you want is for your credit report to fall into the wrong hands. Not only does your credit report contain information about you, such as your social security number, it also contains a thorough record of your debts and accounts, something you aren't likely to want to share with anyone unless it's absolutely necessary.\nThe Fair Credit Reporting Act (FCRA) is a federal law that mandates the rules and regulations for the credit reporting industry, and it protects each consumer's private information by restricting credit report access only to those who have permissible purpose to conduct a credit inquiry.\nIn Section 604 under \"Permissible Purpose,\" the FCRA outlines the rules about exactly who is legally able to access your credit report and why.\n### Banks and Credit Card Companies\nBanks and credit card companies make a profit by loaning money to consumers and then collecting interest on the loan amount. When you apply for a loan or credit card, your lender reviews your credit record to determine how likely you are to repay your debt responsibly. The lender then assigns you an interest rate based on your risk level via a process known as price-based risk assessment.\nYour credit report contains all the information your lender needs to conduct a price-based risk assessment. Although many lenders will ask you for your permission before pulling and reviewing your credit report, they are not legally required to do so.\n### Prospective Employers\nIf you plan to apply for a new job in the near future, be aware of the fact that more and more prospective employers are reviewing applicants' credit records before making hiring decisions. Each employer's reason for conducting credit inquiries differs, but many look to see how responsibly you pay your debts since, for many, this is an indicator of how responsibly you will perform at your job. Still others look to credit reports to determine if your level of debt is high enough to make you a theft risk to the company.\nA prospective employer must have your written permission before pulling a copy of your credit report. If the employer decides not to offer you the job based on information within your credit records, it must notify you of that fact and notify you of your federal right to a free credit report based on adverse action.\n### Debt Collectors\nYour credit report contains your most recent address and your previous addresses for the past five years. If a debt collection agency cannot locate you, it may pull your credit report as part of the skip-tracing process. Debt collectors also conduct credit inquiries in order to evaluate your assets and determine if you make a good candidate for a lawsuit. Like lenders, collection agencies have permissible purpose to access your credit records and do not require your permission to do so.\n### Landlords\nIf you decide to rent a house or apartment, you can expect to undergo a credit check. Landlords check your credit to ensure that you pay your debts on time. Renters who pay other creditors on time are more likely to also pay their rent in a timely manner.\nWhen reviewing your credit history, landlords pay close attention to any past evictions you have on file. Evictions are public records and, as such, appear on your credit report for up to seven years. Regardless of whether or not you pay your debts in a timely manner, a previous eviction serves as a red flag for many landlords and could negatively affect your ability to get approved for housing.\n### Pulling Your Own Credit\nCompanies you do business with are not the only ones who can access your credit history. The FCRA gives you the right to request one free credit report each year from the credit bureau of your choice. Some states, such as Georgia and California, provide residents with two free credit reports per year. Taking advantage of your right to a free copy of your credit report helps you identify any errors your report contains and work toward correcting them.\nThe FCRA prohibits the credit bureaus from releasing your credit history to any company or individual that does not have permissible purpose to view it. Should this occur, you have the legal right to file a lawsuit against the person or business that requested your credit report without your permission.\n### Additional Permissible Purposes to Pull Your Credit Report\nBesides the reasons given above, there are also some other reasons your credit report might be pulled. Keep in mind, you do not have to give written permission to someone so they can access your report. Actually, it is perfectly legal for a company to pull your credit file without written permission so long as their reason falls within one of the FCRA approved reasons. Here are some additional permissible purposes:\n*   Child support\n*   Legitimate business need\n*   License eligibility\n*   Insurance underwriting\n*   Court order\nIf you don't want a company to access your credit reports, be sure to not give them your name, address, date of birth or social security number. These are the variables a lender must have in order to pull your credit files. END
 TITLE: Credit Reporting Agencies Agree to Changes CONTENT: Credit Agencies Agree to Consumer-Friendly Changes\n--------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 14, 2017_\nAs we have stated in so many of our articles, the first step to fixing your credit is obtaining your credit reports. There are 3 main credit reporting bureaus, Experian, Equifax, TransUnion, and you need to obtain a report from each one of these agencies before you start the credit repair process. Another reason to obtain your credit reports is to help prevent fraud and mistakes on your credit history, which can cripple your ability to borrow money. We recommend obtaining your credit reports once a year, at the very least, so you can fix any errors you find immediately before they do a lot of damage to your credit score.\nBut fixing these errors has not always been easy and dealing with the credit bureaus can sometimes be downright frustrating and exasperating until now — good news is on the horizon!\nConsumer-Friendly Business Practice Reform\n------------------------------------------\nAccording to a recent article by Mark Huffman found in the \"Consumer Affairs\" publication, attorney generals from 31 states have reached a settlement with Experian, Equifax, and TransUnion to implement a broad list of consumer-friendly reforms. In addition, these companies will pay the states $6 million. The states who are all on board with this agreement are: Alabama, Alaska, Arizona, Arkansas, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Missouri, Nebraska, Nevada, New Mexico, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Vermont, and Wisconsin.\nThe changes include providing better protections for consumers who find errors on their credit reports, limiting when medical debts can be placed on a consumer's credit reports, and establishing specific protocols for victims of identity theft who find fraudulent accounts and debts in their name.\nThis reform comes as a response to mounting complaints from consumers against these credit reporting agencies and addresses how they compile and maintain consumer data and how they investigate and handle consumer complaints. A probe into these complaints showed there was a lot of room for improvement.\nHow These Changes May Help Consumers\n------------------------------------\nAs a result of the investigation launched by the above listed 31 states, the three credit reporting agencies will increase transparency and accuracy of credit reports to the benefit of consumers. According to a press release from the Illinois Attorney General's Office, provisions of the settlement are as follows:\n#### Holding Data Furnishers to a Higher Standard\n*   Provides an escalated process for handling complicated disputes, such as those involving identity theft, fraud or mixed files, which is when one consumer’s information is mixed with another.\n*   Requires each credit reporting agency to notify the other agencies if it finds a mixed file.\n*   Requires the credit reporting agencies to send a consumer’s supporting documents to the data furnisher.\n*   Allows consumers to obtain one additional free credit report in a 12-month period if they dispute information on their credit report and a change is made to the report as a result of the dispute.\n#### Limiting Certain Information that can be Added to a Consumer's Credit Report\n*   Generally prohibits fines and tickets from being added to credit reports.\n*   Requires that medical debt cannot be placed on a credit report until 180 days after the account is reported to the credit reporting agency to allow consumers time to work out issues with their insurance companies.\n*   Requires debt collectors to provide the original creditor’s name and information about the debt in order for the debt information to be added to a credit report.\n#### Requiring Additional Consumer Education\n*   Requires credit reporting agencies to tell consumers how they can further report problems about the outcome of an investigation into a dispute, such as filing a complaint with other agencies.\n*   Requires the website www.annualcreditreport.com to contain links to each credit reporting agency’s dispute website and prohibits ads from appearing on that site.\nBetter Credit Report Control for Consumers\n------------------------------------------\n\"Credit reports can be very useful, but when they are inaccurate, they can disrupt and damage the lives of hardworking families,\" said Maryland Attorney General Brian Frosh. \"This settlement helps ensure more accurate credit reporting and provides consumers greater control over the financial records that are compiled by the credit reporting agencies.\"\nThe changes required under the settlement will be implemented in three phases to allow the credit reporting agencies to update their IT systems and procedures with data furnishers. All changes must be completed by three years and 90 days following the settlement’s effective date. Good news for consumers, indeed! END
 TITLE: Credit Reporting Agencies Agree to Changes CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: How to Fix your Credit if Declared Dead on Credit Report CONTENT: Mistakenly Declared Dead on Credit Report?  Here's What You Need to Do\n----------------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 18, 2017_\nOf all the errors you may have to correct over the course of your lifetime, proving that you are, in fact, alive could actually be one of the most challenging. Not only are you faced with a frustrating logistical process, but also the toll such an experience can take on your mental and emotional well-being.\n### **How Often Are People Mistakenly Declared Dead?**\nWhile the chances of a mistaken death declaration are slim, it is actually more common than you might think. The Social Security Administration mistakenly declares approximately 14,000 people dead each year, at an average of **38 mistaken declarations of death per day**.\n**Why Are People Mistakenly Declared Dead?**\n--------------------------------------------\nThe origin of a mistaken death declaration could come from a number of sources, be it the Social Security Administration, a credit bureau, a creditor, a bank, or some other business or government entity. But regardless of the source, the reason can almost invariably be traced back to a human typing error or some glitch in a computer program or system.\n### **What Are The Consequences of Being Declared Dead by Mistake?**\nIf you are mistakenly declared dead, you may:\n*   Find it impossible to secure new lines of credit.\n*   Lose government benefits.\n*   Have checks and payments bounce.\n*   Have difficulty correcting the error.\n**Steps Necessary to Correct a Mistaken Declaration of Death**\n--------------------------------------------------------------\nTo prove that you are, in fact, alive:\n1.  Gather documents that may be necessary to prove your identity, including your birth certificate, Social Security card, photo ID, and recent tax returns, bank statements and utility bills.\n2.  Determine the origin of the mistaken death declaration. Start with whatever source alerted you to the mistake and go from there.\n3.  Determine whether a death certificate has been issued. If so, contact the relevant county clerk’s or recorder’s office to request an amendment.\n4.  Contact your local office of the Social Security Administration. Set up a meeting to prove your identity and request a notarized letter verifying as much, which you can use to dispute the mistake with other entities.\n5.  Notify all three major credit bureaus of the mistake.\n6.  Contact all other entities with which you have an association to be sure the mistaken death declaration has not impacted those accounts as well (i.e., your bank, insurance companies, utility companies, etc).\n7.  Keep detailed records of this process, including copies of correspondence, dates of phone calls, and contact names and numbers.\n8.  Don’t stop until you’re certain the matter has been resolved. This means following up with the entity that originally reported your death and keeping a close eye on your credit reports.\n9.  Request the receipt of any government benefits you lost upon the mistaken death declaration. Hire legal counsel if you are unable to resolve this issue on your own.\nMost importantly, do not lose patience or hope. As maddening as such a mistake can feel, and as lengthy as the resolution process may be, remind yourself daily that it can and will be resolved. END
 TITLE: How to Fix your Credit if Declared Dead on Credit Report CONTENT:    |  |  |  | \n: . END
 TITLE: Using a 100 Word Statement on a Credit Report CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: March 17, 2017_\nThe Fair Credit Reporting Act (FCRA) requires credit bureaus to accept and to publish a statement from consumers in the event a negative item on their credit report has been disputed and verified by a creditor. In simple terms, you have disputed a negative item with the creditor and they come back to you and say that negative item has been verified. You are then permitted to submit a 100 word statement explaining this negative item.\nIs a 100 Word Statement a Good Thing?\n-------------------------------------\nAccording to an article in MSN Money, \"Consumers can always place a 100 word consumer statement on their credit reports to explain special circumstances. However, this will not change any impact such an item may have on the credit score. It will simply provide some additional context for a lender\/creditor\/other reviewing the consumer's file in the future.\"\nIn our humble opinion, this statement is NOT a good thing. Lenders do not consider these statements when evaluating your credit history and quite honestly, they just may use this information against you because people unintentionally make themselves look worse. Also, this letter is also drawing attention to something that may otherwise be overlooked and now you have them wondering about all your other minor infractions.\nAlternatives to a 100 Word Statement\n------------------------------------\nWhy not use the 100 word statement as a weapon against the credit reporting agencies that are violating your rights by not investigating your disputes properly? As we have pointed out in many articles on our website, there are many ways to \"fry a fish.\" So, why not use your energy and letter writing skills in a more productive manner, such as, getting those negative items permanently off your credit report.\nHere are some helpful articles and letters found right here on our site.\n*   Do-it-Yourself Credit Repair\n*   Credit Dispute Letters\n*   Dispute with the Original Creditor\n*   How Long Does Credit Repair Take?\nRemove Negative Items Once and For All\n--------------------------------------\nYou might be saying, \"But I did send them a letter and they wrote me back saying it was verified.\"  Well, write them back asking them to send you the verification and to actually prove their case. That is where the creditors lose their steam and they are usually not able to send it to you and then they have no choice but to remove it from your report.\nInstead of explaining away these negative items with a statement, let's work on removing them for good. Here are some helpful tips:\n*   **Be Persistent.**  If you got back a letter saying \"verified,\" don't let that stop you. Send out another letter using another reason for them to look into this item. Don't forget, they get bombarded with letters and they only have 30 days to respond to yours. If they don't, it has to come off.\n*   **Be Creative.**  When sending out your second, third, or fourth letter, get creative with your reason for them to investigate. Remember, you need to use a different reason with every dispute.\n*   **Be Assertive.**  If you feel the credit bureau is not handling this matter in compliance with FCRA regulations, let them know you are going to seek legal counsel. This usually gets some paper pusher in their office to take notice.\nRemoving negative items is something you can do yourself. has eBooks and sample credit repair letters you can purchase to help you remove these items for good. So forget about the 100 word statement, use your energy in writing dispute letters and getting these negatives off your credit report permanently. END
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 TITLE: e-Oscar is Used to Process Credit Report Disputes CONTENT: e-Oscar — Credit Bureaus Use to Handle Credit Disputes\n------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 19, 2017_\nThe e-Oscar method of investigating credit disputes may be the reason your credit dispute was verified as being accurate when you are positive a mistake has occurred. Credit reporting agencies (CRAs) have created an automated computerized system of dealing with credit disputes.\nThe e-Oscar (Online Solution for Complete and Accurate Reporting) system is utilized even when consumers send in detailed disputes, with supporting documents. The dispute is broken down into a two or three digit code and sent to the original creditor to verify a simple code, failing the duty to investigate.\nWhat is e-Oscar?\n----------------\nIn our Method of Verification article, we talked about the way that the credit bureaus investigate consumer disputes. This method involves the use of e-Oscar. We also learned a lot from the testimony of Leonard Bennett, Testimony Before Subcommittee on Financial Institutions And Consumer Credit of the COMMITTEE ON FINANCIAL SERVICES Regarding \"Fair Credit Reporting Act: How it Functions for Consumers and the Economy.\"\nFrom the e-Oscar website:\n* * *\n_e-OSCAR is a web-based, Metro 2 compliant, automated system that enables Data Furnishers (DFs), and Credit Reporting Agencies (CRAs) to create and respond to consumer credit history disputes. CRAs include Equifax, Experian, Innovis and TransUnion, their affiliates or Independent Credit Bureaus and Mortgage Reporting Companies. e-Oscar also provides for DFs to send \"out-of-cycle\" credit history updates to CRAs._\n_The system primarily supports Automated Credit Dispute Verification (ACDV) and Automated Universal Dataform (AUD) processing as well as a number of related processes that handle registration, subscriber code management and reporting._\n_ACDVs initiated by a CRA on behalf of a consumer are routed to the appropriate Data Furnisher based on the CRA and subscriber code affiliations indicated by the DF. The ACDV is returned to the initiating CRA with updated information (if any) relating to the consumer's credit history. If an account is modified or deleted, carbon copies are sent to each CRA with whom the DF has a reporting relationship._\n_AUDs are initiated by the DF to process out-of-cycle credit history updates. The system is used to create the AUD and route it to the appropriate CRA(s) based on subscriber codes specified by the DF in the AUD record. The e-OSCAR AUD process is intended to provide the CRA with a correction to a consumer's file that must be handled outside of the regular activity reporting cycle process. e-Oscar may not be used to add or create a record on a consumer's file or as substitute for \"in-cycle\" reporting to the CRAs._\nE-OSCAR help desk: (866) MY OSCAR or (866) 696-7227.\n* * *\nWhat is all that supposed to mean? We think they are a little acronym-happy in the explanation, what do you think? Think they are trying to hide what's really going on?  Before we move on, here are a few terms you should know.\n### e-Oscar Terminology\n*   **Information Furnisher.** The people who put information about your credit accounts on your credit report. They send information about your credit card accounts, the number, when they were opened, and your payment history to the bureaus. Entities who are also considered information furnishers are collection agencies, the courts (judgments and bankruptcies), mortgage companies and any other type of credit companies.\n*   **Automated Credit Dispute Verification.** This is the what e-Oscar was invented for, a way to cut down on the work the credit bureaus consumer dispute process. Instead of calling the creditors themselves to check on information a consumer is disputed, it's done via a computer.\nProblems with e-Oscar\n---------------------\nDoes it bother you that the description on the website makes it sound as if the companies supplying the information to the credit bureaus are the credit card companies, mortgage companies and collection agencies, original creditors or data furnisher? From the testimony of Leonard Bennett with the employees of TransUnion, this is not what really happens. Every dispute is reduced to a 2 character code and supporting documentation is NEVER sent to the information furnisher.\nThe investigators at the credit bureaus have a maximum of 4 minutes to determine what 2-digit code to reduce the dispute to send to e-oscar and through e-oscar, the information furnishers.\nThe Automated Universal Dataform (AUD) form is the form Equifax sends out for EVERY investigation, not just some of them. TransUnion and Experian send out forms that look basically the same (names are changed, layout is a bit different, etc.) I'm personally surprised that not many more people have initiated a class-action lawsuit over the way that the bureaus investigate. In Cushman v TransUnion, Stevenson v. TRW (Experian), and Richardson v. Fleet, Equifax, et al, the courts ruled each and every time that the CRA couldn't merely \"parrot\" information from the creditors and collection agencies...that they have to conduct an independent REASONABLE investigation to ensure the validity of the debt and the honesty\/integrity of the creditor\/CA in question. END
 TITLE: e-Oscar is Used to Process Credit Report Disputes CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: e-Oscar is Used to Process Credit Report Disputes CONTENT:    |  |  |  | \n: . END
 TITLE: Why Banks Use ChexSystems and How to Get Off This List CONTENT: ChexSystems— Everything You Need to Know about this Bank Checking System\n------------------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: January 29, 2012_\nIf you have been turned down for a bank account, you might have a negative record with ChexSystems. ChexSystems provides information to banks and credit unions about checking or savings accounts that have been closed because of mishandling. The reasons vary but can include unpaid overdraft or nonsufficient-funds fees, account fraud and identity theft. Banks screen applicants for new accounts and might deny anyone who has a bad banking history. ChexSystems is very similar to the familiar credit reporting bureaus, but they just have a different report and dispute process.\nU.S. banks and credit unions report incidents to ChexSystems to protect themselves and other banks in the future. You get reported to ChexSystems if your account is closed for \"cause.\" What is \"for cause?\" Banks differ greatly between them as to what valid reasons are for closing an account. Here are some examples:\n*   The bank was unable to collect for an overdraft, ATM transaction, or automatic payment which they honored on insufficient funds.(Regardless of amount, and often without waiting more than a few days!)\n*   Multiple overdrafts.\n*   Savings account, debit card or ATM abuse.\n*   Fraud.\n*   Providing false information in opening account.\nEach incident stays on your record with ChexSystems for FIVE full years from the date the incident was reported. You are entitled to see your Chexsystems Report once a year for FREE, just like you are entitled to a free credit report from Experian, Equifax and Transunion.\nGetting an incident reported to ChexSystems is the **Kiss Of Death** for your financial future. Most banks now say: \"Our bank policy is that we will not open a checking account for you if you have one or more incidents reported to ChexSystems.\" Scary.\n### Do Banks Open Accounts & Close Them Later?\nIt seems more common among some banks than others. Some banks have online applications that will approve immediately. Then the bank will wait until the signature card is sent in to actually look at the ChexSystems report. At that point, they will send back the initial deposit and close the account.\nThen there are other banks that do \"sweeps\" on accounts. This is where a bank, generally the loss prevention department will do a random check on accounts with chexsystems. If they find that the customer has a chexsystems record, they then will determine that they person may be a risk and they will freeze account, and later close it.\nFor more details about this system and what to do if you get reported, check out these excellent resources:\n*   On our website: Sample letter requesting ChexSystems to validate and remove a listing from their database.\n*   Chex Systems, Inc.  \n    7805 Hudson Road, Suite 100  \n    Woodbury, MN 55125  \n    Fax: (602) 659-2197\n    Instructions can be heard by calling:  \n    (800) 428-9623\n    Customer service:  \n    (800) 513-7125.\n### Non-ChexSystems Banks\nWant to find a non-ChexSystems bank? Here are some free resources (yeah, they're REALLY free). However, bank policy changes ALL of the time, so you should **call these banks first** to see what their current policy is.\n*   www.chexsystemsvictims.com\n*   Here's a good forum for people trying to find a good bank or learn how to get out of CheckSystems.\n*   Here is the discussion forum thread that keeps an updated list as well.\nChexSystems for Members\n-----------------------\nBanks and credit unions can call (800) 328-5120\\* or (800) 328-5122\\* to reach ChexSystems' Inquiry Department. At this number, your banker (but not you) can obtain the details in your record immediately.\n*   Tip #1: Your banker can call this number to get all the information in your files and according to FCRA Section 607 (c) regulations, ChexSystems cannot discourage your banker from relaying that information to you.\n*   Tip #2: ChexSystems now offers a customer service number, (800) 513-7125, for consumers to reach a human there. If the wait time on hold at that number is too long, and you REALLY want to speak to a human, sometimes you can ask for a supervisor at either of these 800 numbers and perhaps someone may be able to talk with you. You can also try to game the system by calling customer service, then press the # key, and enter random 3 digit extensions until you find someone on the inside at ChexSystems who will take your call. Either you will find someone this way, or after the third attempt, your call will get forwarded to a human.\n*   Tip #3: Or else, try 1-800-613-6743, (Office of the Controller of the Currency) to file a complaint.\n*   Tip #4: You can also try the customer service number posted on ChexSystem's website: 800.428.9623.\nThere are 2 other major specialty companies that report on check writing history:\n**Shared Check Authorization Network (SCAN)** is owned by Deposit Payment Protection Services (DPPS) SCAN maintains a database of returned checks and instances of fraud. It provides check authorization and verification to its members, primarily retailers.  \nToll-free number: (800) 262-7771 (U.S., Guam, and Puerto Rico) Fax: (800) 358-4506  \nTo Order by Mail: Print the order form from the www.chexsystems.com website and mail to:  \nDeposit Payment Protection Services, Inc.  \nAttn: Consumer Referral Services  \n7805 Hudson Road, Suite 100  \nWoodbury, MN 55125  \nTo Order by FAX: Fax the order form to 800-358-4506\n**TeleCheck** Maintains a database of returned checks and instances of fraud. It provides check authorization and verification to member retailers.  \nToll-free number: (800) 209-8186.  \nWeb: www.telecheck.com. END
 TITLE: Why Banks Use ChexSystems and How to Get Off This List CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
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 TITLE: Credit Bureaus Should Investigate Credit Disputes CONTENT: ###### Written by: Kristy Welsh\nCredit Bureaus are Suppose to Investigate Disputes\n--------------------------------------------------\n_Last Updated: April 3, 2017_\nThe credit reporting bureaus are suppose to conduct a reasonable investigation when a consumer makes a credit dispute by actually contacting the information furnisher such as a credit card company, collection agency or mortgage company to verify information. That statement is a total myth. All the credit bureaus do with disputes is submit the dispute through a computerized system known as eOscar. In most cases, the information furnisher is not contacted about the dispute.\nSubmitting disputes via eOscar is the procedure Equifax sends out for every investigation, not just some of them. TransUnion and Experian also use eOscar for all their credit disputes, written or otherwise.\n### Is This Method of Investigation Legal?\nCase law has borne out that this method of investigation is not sufficient. In _Cushman v. TransUnion_, _Stevenson v. TRW (Experian)_, and _Richardson vs. Fleet, Equifax, et al_, the courts ruled each and every time that the CRA couldn't merely parrot information from the creditors and collection agencies. They must conduct an independent and reasonable investigation to ensure the validity of the debt and the integrity of the creditor in question. This is not regarded by the courts as a reasonable investigation.\nIf the information is even close, the CRA will consider it valid and verify the debt.  Yes, even social security numbers and dates of birth. Addresses do not need to match at all. Equifax will simply update their files with the address the creditor provides if they fill in a different address, and that address, valid or not, will magically become your current address on your credit file (making it insanely difficult to get correspondence going with the CRA). As for the rest of the information? If 3 portions of the form are listed as a match, your debt has just been verified. That's all these CRA's do in order to ensure that your financial future isn't jeopardized.\nConsider a hypothetical identity theft situation where a California resident sees trade lines from Florida on their report. The consumer writes 47 letters explaining the charges were incurred in Florida while the consumer lives in California. Utility bills and drivers license are copied and sent as proof of residence. The consumer even points out charges were incurred in Florida at the same time as legitimate charges were incurred in California. The CRA reduces the consumer complaint to \"not mine\" and asks the creditor to verify.\nIn the above hypothesis, it would be difficult for the CRA to argue that its reinvestigation was reasonable if it did not forward all relevant information to the creditor but simply characterized the complaint as \"not mine.\" Furnishers may try to defend a case saying they got inadequate info from the CRA. That is why it is a good idea to copy the furnisher on all disputes to the CRA and include all proof sent to the CRA. END
 TITLE: Manageable Steps to Rebuild Your Credit CONTENT: Rebuild Your Credit with Our Easy to Follow Steps\n-------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: April 4, 2017_\nThe longer you live with bad credit, the more daunting the road back to good credit can feel. That's why it's important to break down the process of rebuilding your credit into manageable steps. You never want to try to do everything all at once but rather, take little steps and slowly chip away at all the negative items on your credit report. We want to make the process of rebuilding your credit as easy as possible, which is why we put together this article to show you the steps needed top make your credit repair process a success. Remember to be patient and have faith that, over time, you will see gradual, but certain, improvement in your credit score.\nMonitor Your Credit Reports\n---------------------------\nYou're entitled to one free report from each of the three major credit reporting agencies once per year. Make it a point to request your copies via AnnualCreditReport.com.\nLook For Errors On Your Credit Reports\n--------------------------------------\nAfter you request your credit reports and you have a chance to look them over, make a point to see if there are any errors. Some errors may include:\n*   Misspelling of your name.\n*   Wrong address(es).\n*   Credit accounts you know are in good standing but are listed as late, in collections, or charged-off.\n*   Credit accounts that have passed their statute of limitations, meaning you are no longer legally required to pay the debt; statutes vary by state.\n*   Credit accounts that you never opened.\n*   Duplicate listings of the same account, which can occur when it is sold from one collection agency to another.\nDispute Any and All Errors on Your Credit Reports\n-------------------------------------------------\nSend a certified letter to the appropriate credit reporting agency. It's important to dispute even the smallest of details, including a name misspelling or inaccurate mailing address, as this could suggest your identity is being confused with someone else.\nRequest a Validation of Old Debt\n--------------------------------\nThis refers to any account that is no longer being collected by the original creditor. When an account is sold to a collection agency, documentation supporting adequate proof of the debt doesn't always go with it. And the more times the account is sold, the thinner the proof. This is important because you are not legally obligated to pay a debt that the collector cannot prove you are are legally responsible for.\nTry Negotiating A Settlement on Your Debt\n-----------------------------------------\nSee if you can settle for less than the amount owed, as well as removal of the negative listing from your reports (which they are not required to do, but it's worth a try). If you do reach a settlement, be sure to get it in writing!\nMake Note of Dates When Negative Listings Should Fall Off Your Credit Reports\n-----------------------------------------------------------------------------\n*   Late payments: 7 years from date payment was late\n*   Collection accounts: 7.5 years from date of delinquency on original debt (leading up to collection)\n*   Charge-offs: 7 years from date of charge-off\n*   Tax liens: 7 years after paid\/satisfied\n*   Judgments: 7 years from date entered by the court if paid, possibly longer if unpaid\n*   Repossession: 7 years from date repo occurred\n*   Bankruptcy: 10 years from the date filed\n*   Chapter 13 bankruptcy: 7 years from the date filed\nIf these items do not fall off your reports within the specified time period(s), dispute it with the credit bureaus.\nApply For New Lines of Credit\n-----------------------------\nYou may be a little gun-shy about using credit again, but (after debt validation) it's the best way of rebuilding your credit score. Of course, you'll have to rely on options open to someone with less-than-stellar credit:\n*   Apply for a secured credit card but only ones that reports your activity to the credit bureaus.\n*   Become an authorized user on a credit card account, the activity for which will be included on your credit reports.\n*   Co-sign on a loan with someone, the activity for which will be included on your credit reports.\n*   Open an account with a credit union, and apply for a loan. Unlike banks, which look for a reason not to lend to you, credit unions look for all the reasons you deserve it. If you're turned down, ask about a loan you can secure with a savings account or certificate of deposit.\n*   Apply for a loan through a peer-to-peer lending website, such as Prosper.com or LendingClub.com\n### Use Your Credit Cards\nThe only way credit cards can boost your score is if you demonstrate the ability to responsibly use them. This is not say you should make unnecessary purchases just to use your credit. Rather, use your cards only for things you normally buy or pay for, like groceries or the phone bill. Just remember to never charge more than you can afford to pay off at the end of the month. The goal should always be to return the balance to zero so as to avoid interest charges and to keep your credit utilization ratio low.\n### Keep Your Credit Utilization Ratio Below 30 Percent\nIn other words, never use more than 30 percent of your total credit at one time. Actually, 10 to 25 percent is an ideal target range.\n### Keep Open Credit Accounts in Good Standing\nThis means making all your payments on time, be it credit cards, car payments, house payments, utility payments, medical bills, student loans, and other credit lines that get reported to the credit bureaus.\n### Monitor Your Credit Score\nAs you take steps toward rebuilding your credit, it's helpful to see how your actions are affecting your score. This not only informs where you may place emphasis in the credit rebuilding process, but it's also a great way to stay motivated.\n### Spend Less and Save More\nTo help ensure you always have the means to pay your bills on time, go through your budget, cut where you can, and start an emergency fund from which you can draw, need be. END
 TITLE: Manageable Steps to Rebuild Your Credit CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Credit Unions Help Rebuild Credit CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: April 3, 2017_\nThe most important part to rebuilding your credit is establishing new credit. An excellent place to apply for credit is a credit union. Credit unions live by the philosophy — \"People Helping People.\" They are committed to their communities and offer financial services to consumers as well as improving the quality of life for its members.\nBesides joining a credit union to re-establish credit, a lot of consumers join credit unions for their lower fees. When Bank of America announced it was going to charge a $5 per month debit card fee back in September of 2011, an estimated 650,000 people moved their money to a credit union. November 4, 2011 came to be known as \"Bank Transfer Day.\" B of A later repealed this fee, but using a credit union can save you money through free checking accounts, lower interest rates and annual fees on credit cards, lower overdraft fees and overall little to no monthly service fees.\nWays a Credit Union Differs From a Bank\n---------------------------------------\nA credit union acts just like a bank by providing all of the same services: checking, savings, mortgage lending, auto loans and business loans. The one distinguishing factor is that credit unions are member-owned, not for-profit institutions. That means they do not have to answer to a bunch of shareholders, so when they make a profit, they don't give that to shareholders. Instead, credit unions return that profit to its members in the form of lower fees and better service.\nFederal credit unions are chartered and supervised by the National Credit Union Administration (NCUA). Through this federal agency, savings in federal and most state-chartered credit unions are insured by the National Credit Union Share Insurance Fund (NCUSIF), a federal fund backed by the United States government. The funds in some credit unions are privately insured.\nAdvantages of Joining a Credit Union\n------------------------------------\nCredit unions are an especially good option for people who are building credit for the first time or trying to re-establish good credit, as they are typically smaller organizations which offer personalized service and are more willing to consider factors beyond the \"black and white.\"\nBecause they are member owned, they tend to have more lenient credit guidelines on auto loans, credit cards and second mortgages. However, most people don't know which credit unions they are qualified to join nor do they know what the pros and cons are of joining a credit union.\nA credit union can help you with a small business loan for your local business. Some credit unions have established a relationship with the Small Business Administration (SBA) to expedite loans to credit-worthy small businesses. Just one of the many ways credit unions give back to the community.\nLastly, while credit unions increasingly have worldwide reach, they are still very localized. That means they are run and owned by people in the community, which, at least for many people, is a plus.\nDisadvantages of a Credit Union\n-------------------------------\nFor a long time, credit unions did not have many ATM locations and for many customers, this was a major drawback. But increasingly, through partnerships, credit unions have created excellent ATM networks, where you can get your money without any sort of charge, as long as you use the network or parameters that they've set up for you. Unless you really just love the idea of banking with a giant bank, and perhaps enjoy the ease of having numerous branches that you can waltz into, it's pretty hard to come up with a significant drawback to banking at a credit union.\nHow to Locate a Credit Union\n----------------------------\nSeveral additional credit union locator tools that may be helpful in assisting you in determining which credit unions might be right for you:\n*   National Credit Union Administration\n*   Find a Credit Union\n*   Credit Union Access\nHow to Become a Credit Union Member\n-----------------------------------\nGovernmental regulatory agencies require that credit unions restrict their membership to defined segments of the population who all share a common bond, such as:\n*   Employer or someone in your workplace\n*   Geographic area\n*   School\n*   Place of worship\n*   Membership in an organization\nThere is a credit union for everyone — some of us may have to find more creative ways to \"stretch\" the definition of qualification to be a member, but it can be done! In addition to the ideas given in the previous paragraph, here are some more tips for seeking a credit union that you may qualify for:\n*   Your employer may sponsor a credit union, or may be a select employee group (SEG) that has access to a credit union.\n*   Ask at your school, your child's school, your church.\n*   Ask your family. If your employer doesn't sponsor a credit union, perhaps your spouse's or another family member's employer does. Many credit unions will allow family members to join.\n*   Check the yellow pages. You will find a listing of credit unions in your community. Give them a call.\n*   Consider civic and social groups. Many associations and organizations offer credit union membership to their members. These include Homeowners' Associations, Scouting organizations, and more.\n*   Ask your neighbors. Some credit unions have a \"community\" field of membership, serving a region defined by geography rather than by employment or some other association. Ask friends in the community if they know of a credit union you may join.\n*   You are active duty military, retired or a military dependent, or are a civil service or contract employee or retiree.\nSo, with all these advantages of joining a credit union, what are you waiting for? Locate a credit union near you and check out what they have to offer. Rebuilding your credit and establishing new credit is easier with a credit union so start building a better credit history today! END
 TITLE: Credit Unions Help Rebuild Credit CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Build Up Your Credit Without Using Credit Cards CONTENT: ###### Written by: Kristy Welsh\nWho says you need to use credit cards to build up your credit? Well, maybe we did. So, what advise can we offer our readers who don't want to use credit cards? For those of you who can't get a credit card in today's tight economic environment or maybe you do not trust yourself with a credit card, we have good news for you. You can rebuild your credit history without using credit cards and we will show you how.\nApply For a Secured Loan From a Credit Union\n--------------------------------------------\nA secured loan is a type of loan which is backed by either collateral or money you place in a saving account or a certificate of deposit. The best place to apply for a secured loan is your local credit union. Credit unions look at more than just your credit score when evaluating your credit worthiness. They are looking for ways to give you the loan, not like a traditional bank who is looking for ways to shoot down your loan.\nUse a Peer-to-Peer Loan\n-----------------------\nPeer-to-peer, or social, lending sites such as Lending Club or Prosper try to connect borrowers with individual investors. Investors bid on a borrower's application and the investor willing to provide the lowest interest rate to the borrower wins the contract.\nYou want to make sure the loan and payments get reported to all three credit bureaus. Lending Club does report to all three bureaus but Prosper only reports to Experian and TransUnion. Also, the minimum credit score for a borrower using Lending Club is 660, whereas Prosper requires a credit score of at least 640.\nApply For a Federal Student Loan\n--------------------------------\nFederal student loans do not require a credit check, but you have to be enrolled as a college student at least half-time to qualify. You do not have to show financial need and the rates for unsubsidized and subsidized Federal Stafford Loans in 2015 were fixed at 4.66 percent for undergraduates and 6.21 percent for graduate and professional students.\nThis loan will not show up on your credit report until you are in repayment mode. Then, once you start making on-time payments, your credit score will get a boost.\nBecome an Authorized User on a Credit Card\n------------------------------------------\nIf you are added as an authorized user on someone else's credit card, his or her history is typically reported to your credit report. Just make sure this person is responsible with the card and charges lightly and makes their payments on time. If they don't, this will negatively affect your credit report and score.\nYou do not have to have access to this card but you should make sure the credit card reports the information to your credit report. Some cards will report authorized-user information only for spouses or family members.\nUse a Co-Signer to Qualify for a Loan\n-------------------------------------\nGetting a co-signer can help you obtain a loan you might otherwise not get which will help you build your credit score. Co-signing is risky for each party so make sure you are prepared to make the payments on time — or you are going to trash the other person's credit. Unlike authorized-user status, you can not be removed as a co-signer and you will be responsible for the loan until it is paid off.\nUse a Charge Card Instead of a Credit Card\n------------------------------------------\nIsn't a charge card the same as a credit card? No, it is not. A charge card, such as American Express or Diner's Club, does not allow you to carry a balance. You are generally required to pay your bill in full every month and typically there is no preset spending limit. The benefit to using charge cards is you do not have to worry about credit utilization, which can account for up to 30 percent of your FICO score. Charge card balances aren't included in credit utilization formulas so you can run up a big bill without fear, as long as you pay them off in full when your bill arrives.\nAvoid These Ways to Rebuild Your Credit\n---------------------------------------\nYou may be tempted by other ways to rebuild your credit, but many have hidden traps or don't work. The following are methods you want to avoid at all costs:\n*   **Prepaid Cards.** Some prepaid cards promise to help you build your credit, but the fees are often high, and your activity may be reported to an \"alternative\" credit agency, rather than to the big three. For example, the fee for Eufora's prepaid card \"Credit Builder\" is $139.75 to $219.95, and the card reports to just two of the three bureaus. AccountNow doesn't even do that, this prepaid card reports to the Payment Reporting Builds Credit, an alternative credit-reporting agency.\n*   **Bad-Credit Credit Cards.** These unsecured cards tend to come with tiny credit limits and high upfront fees. A secured card is typically a better option if you're going to use plastic.\n*   **Rent to Own.** You'll pay two to three times more for merchandise you buy from one of these outfits, and your payments typically aren't reported to the three major credit bureaus.\n*   **Other Loans.** Loans from your retirement plan or life insurance policies won't help boost your scores because your payments aren't reported to the bureaus.\nSo, even though the fastest way to build or rebuild your credit is to use revolving accounts (credit cards) or installment loans (mortgage or auto loans), some consumers are not able to obtain either one of these in today's economy. Fortunately, there are other ways to increase your credit score and build up your credit. Now, there is no excuse for bad credit so take our tips to heart and start working on making your credit better! END
 TITLE: Use Secured Credit Cards to Rebuild Credit CONTENT: Secured Credit Card is a Good Way to Rebuild Your Credit\n--------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: April 4, 2017_\nThere is a way you can bounce back fast after a bankruptcy. You can carefully rebuild your credit by applying for and using secured credit cards. A secured credit card requires you to deposit money with the lender and your credit limit is equal to the deposit.\nThere are a lot of bad secured credit cards, so you want to make sure you do your homework first before getting one of these cards. Getting the right one and using it the right way, will go miles in the journey of rebuilding your credit and increasing your credit score.\n**Secured Credit Card Should Have the Following**\n-------------------------------------------------\n*   Have no application fee and a low annual fee.\n*   Convert to a regular, unsecured credit card after 12 to 18 months of on-time payments.\n*   Report activity to all three credit bureaus.\n### Report Balance to the Bureaus\nCredit scores take into account the total amount of credit available to you and the current balance you have on your cards. They use this to calculate your debt ratios which is:\nCurrent Total Balances (divided by) Current Total Credit Limits (equals) Debt Ratio.\nIf they are not able to do this calculation, they will just guess what the limit is and this is going to be your current credit card balance or 100 percent of your credit limit used. Remember in the credit scoring article, the scoring model likes to see 30 percent or less of your credit limit used.\n### Are They Reporting the Credit Line as Secured?\nIf you get a card which reports to the credit bureaus that it is a secured card, your credit score will also take a hit, even if you are paying on time. Make sure they are not reporting your line of credit this way. There are so many products being offered by banks and we hope you find one that fits your needs and your budget. END
 TITLE: Understand Credit Card Limits and Your Credit Score CONTENT: How Credit Card Limits Can Affect Your Credit Score\n---------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: April 10, 2017_\nThere are many misconceptions on what a credit card limit is and how it can affect your credit score. If you are trying to rebuild your credit or just want to increase your credit score, you first need to understand how those credit card limits factor into your score and how the credit bureaus look at credit card limits.\nWe here at CreditInfocenter.com have answered a lot of emails regarding fixing credit and what goes into computing a credit score. Although we may not have all the info (since a lot of it is a guarded secret), we can address some of the common myths people believe regarding credit card limits.\nCredit Card Limit is Your Spending Limit\n----------------------------------------\nThis is a where a lot of people get into trouble. They feel the higher the credit limit is on their credit card, the more they can spend. When in fact, you should keep your spending to about 30 percent or less of your credit limit. So, if you have a credit card with a limit of $5,000, you should only be spending about $1,500 or less. Why so low you may ask? Well, the credit bureaus looks at how much \"available\" credit you have on your card so maxing out your credit card is NOT a good thing in the eyes of the bureaus. Statistically, consumers who use about 30 percent of their credit limits are less likely to have late pays or misuse credit.\n### Increase in Credit Limit Means You Can Charge More\nWell, obviously you could answer \"yes\" to that statement but you need to think about what will help you increase your credit score and build up good credit. Again, you want to follow the same rule of thumb as we discussed before, keep your available credit to credit limit ratio around 30 percent.\nLet's say you are paying your bills on time and ABC Bank offers to up your credit card limit from $5,000 to $7,000. So instead of keeping your spending to around $1,500 or less, you can now raise that to $2,100. But, keep in mind, increasing your spending may increase your monthly payments so you need to carefully analyze your monthly budget and long-term financial goals before stepping off into the deep end.\n### If I Pay Down My Credit Card Debt, My Limit Will Increase\nThat is not necessarily true. Many people learned this is not the case a few years ago when credit card companies slashed limits in a reaction to rampant over-spending. A lot of consumers did not even know their limits were decreased until they tried to purchase something. These were people who did all the right things, like paying their bills on time, keeping their balances low, but they were still caught in the slashing mayhem. Lowering your credit card limit is one thing the companies do not have to warn you about so don't get lulled into thinking they are going to raise it for you just because you paid down your debt.\n### You Are Going to be Stuck with the Same Limit Forever\nYou can ask for a higher credit limit by calling your credit card company, and you just might get it if you can show your financial circumstances have improved. You can also opt in for a program that allows you to go over the limit — for a fee. Before new federal credit card regulations kicked in, many companies were letting their customers go over their credit limits and then charging fees for the privilege. Now, customers must opt in for such programs.\nIf you have been paying your bill on time and your available credit ratio is around 30 percent, why not ask for an increase. A higher limit may be useful if you are expecting a special purchase in the future of if you just want the piece of mind you have a little extra cushion incase of an emergency.\nThe moral of our credit card limit story, don't let low credit limits get you down, and don't let high credit limits go to your head. Use your head instead to set your own reasonable spending limits. Understanding how these limits affect your credit score can mean the difference between a fair credit score and a good one. END
 TITLE: Rebuild Your Credit After Financial Disaster CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: April 4, 2017_\nMany of our readers come to this site looking for advice on how to rebuild their credit by either reducing their debt or applying for a credit card. Recently we received an e-mail from a distraught reader wondering how to recover from financial ruin and how to rebuild his credit and retirement account.\nHis story is an all too familiar one. He was a successful businessman who owned his own company and employed about 30 people. His business was real estate based so when the economy took a nose dive, so did his business. He poured his entire nest egg into saving his business but to no avail. Forced to close the doors and file bankruptcy, he has since lost his cars, house, retirement and savings accounts, and is now employed at a job making a fraction of the salary he once made.\nMillions of Americans have seen their finances wrecked by unemployment, foreclosure, medical bills or other setbacks, and are likely wondering the same thing: How do you rebuild after financial disaster? The truth is you may never get back the life you lost, but it is possible to rebuild your finances and your credit over time.\nExamine Your Overhead\n---------------------\nTo make sure you have enough money to rebuild your financial life, figure out what your overhead is every month. Examine the following expenses:\n*   Shelter\n*   Food\n*   Utilities\n*   Insurance\n*   Child care (if needed)\n*   Minimum loan payments\nAfter losing so much, it is hard not to be tempted into buying things you really do not need at this time. Try to resist the urge to spend money and keep your \"must have\" items to under 50 percent of your after-tax income. Do you really need that second phone line or can you do without cable television for a while? You will be surprised at all the frivolous things you spend money on and once you cut them out, you really will not miss them at all. Less is more!\nStart to Save Money\n-------------------\nNow that you cut out some of the non-essential expenses in your life, you can start to put away a little money every month into either a checking or saving account. Start to build a little cushion so if you do have an unexpected emergency expense, you have a little extra money to help you get thru it.\nMake a commitment to put a little money aside each month. You will be surprised that after a year, how much money you have saved. The longer you stick to this program, the more money you will have down the road to pay off debt, buy a car, or maybe even buy a house.\nContribute to a Retirement Account\n----------------------------------\nYou may be shocked to see this task so high in the priority list, but there's a reason: Retirement is expensive, and it's coming sooner than you think. Contributing to a retirement plan can help reduce your taxes and help you build the savings you'll need down the road. If you've been spooked by the market, you can start with low-risk options and ease into stock market investments over time. The point is to get started again.\nAssess Your Debts\n-----------------\nAs with our unfortunate reader, he had to close his business and file bankruptcy due to overwhelming debt. Prior to filing bankruptcy, it is a good idea to talk to a qualified bankruptcy attorney. If you think you can pay off your debts, contact your creditors and work out an arrangement with them before they begin to sue you.\nAfter you have assessed your debts, look to see if you can negotiate these debts with your creditors. If you do not feel comfortable doing this yourself, look into using a reputable credit counselor or debt consolidation company.\nRebuild Your Credit\n-------------------\nYou may feel burned by your creditors and convinced you'll never want credit again. But your credit scores will be vitally important to you in the future if you ever want to buy a home or a car. Credit history information can also used by insurers, landlords and employers, so you will want to eventually clean up and improve your credit history and scores. The good news is that you don't have to take on more debt to fill your credit reports with positive information.\nWe have recently added numerous articles to our site regarding ways to rebuild your credit. Here are just some ways you can rebuild your credit:\n*   Use Credit Unions\n*   Rebuild Your Credit Without Using Credit Cards\n*   Pros and Cons of Prepaid and Secured Credit Cards\nIf you have suffered a serious financial setback, take heart in knowing you will get through it. Follow these simple steps and keep reminding yourself there is light at the end of the tunnel. Keep a positive outlook and ask for help when needed — there are a lot of companies and people out there that are willing to give a helping hand. Once you get back on your feet, you will be able to repay any and all help you received and you just may be able to help someone else out. END
 TITLE: Rebuild Your Credit With These Personal Finance Apps CONTENT: Best Personal Finance Apps to Build Better Credit\n-------------------------------------------------\n###### Written by: Kristy Welsh\nHaving and keeping good credit takes hard work and it is something you need to work on continuously. Not only do you need to review your credit reports regularly and remove any incorrect information, but you need to keep building better credit. If you think you’re already doing everything you can to improve your credit — or you know you should be doing plenty more — a good next (or first) step is the right personal finance app. From banking and budgeting, to debt management and credit monitoring, there’s an app you can download on your mobile device to help you rebuild or build up your credit.\n**Banking Apps**\n----------------\nThirty-five percent of your FICO credit score is determined by your payment history. So one of the best ways of improving your credit is paying your bills on time. That not only means scheduling payments accordingly, but making sure you have the funds in your checking account to cover them.\nKeeping a close eye on your bank accounts is also the best way of identifying fraudulent activity. Keep in mind that thieves who have access to your bank accounts could also have access to other personal information they can use to open credit accounts in your name that will end up on your credit reports (i.e., do damage to your credit scores).\nA banking app can help in all of these areas:\n*   Scheduling payments\n*   Checking balances\n*   Checking the authenticity of transactions\nCheck your bank’s website for a link to its mobile app. If you don’t see one, call and ask about it. You might have just missed the link or, if yours is a small bank or credit union, they may not have a mobile app (yet).\n**Budgeting Apps**\n------------------\nIf you don’t have a workable budget, your credit score is likely to suffer. How else are you going to ensure you have the money pay your current bills, not to mention old debt that’s dragging down your credit score? Budgeting also helps you meet credit-building goals, like saving for a down payment for a house or car.\nWhether you have an old-school budgeting system or no budget at all, think about upgrading to a budgeting app. They not only help you set budgeting goals by category, but keep track of your transactions. So at any given time, you can look and see how much you have left to spend in any given category at any point during the month.\nAll of the following budgeting apps offer comprehensive budgeting tools and connect directly to your bank accounts:\n*   Mint (for iPhone and Android users) — Free\n*   LearnVest (for iPhone users) — Free\n*   YNAB – (for iPhone and Android users) — $5\/month or $50\/year\nThe following two budgeting apps don’t have as many bells and whistles as Mint, LearnVest, or YNAB. For instance, they don’t connect to your bank accounts, meaning you have to enter every transaction manually. In every other respect, though, you might find them simpler to use if budgeting is new to you:\n*   Wally (for iPhone and Android users) — Free\n*   Dollarbird (for iPhone and Android users) — Free\n**Debt Management Apps**\n------------------------\nThirty percent of your FICO credit score is determined by how much debt you owe. That’s why it’s so important to pay attention to your credit utilization ratio. The rule of thumb? Don’t use more than 30 percent of your available credit at any one time. The further away you are from that number, the more you could probably use a debt management app to help you create a pay down plan, track your progress, and keep you motivated.\nYou may find just the level of debt management help you need in the budgeting apps listed above (particularly from Mint), but a couple of good apps specific to debt management include:\n*   Debt Free for iOS (for iPhone users) — $0.99\n*   [Debt Payoff Planner](;hl=en) (for Android users) — $0.99\n**Credit Monitoring Apps**\n--------------------------\nNo matter how good or bad your credit is today, it can change anytime — for better or worse. That’s why seeing your credit reports just once a year isn’t nearly enough.\nFor instance, what if something gets inaccurately listed on your credit reports? Or someone opens an account in your name? Those are things you need to know about immediately so you can take action and minimize the damage.\nAnd if you’re in the middle of the credit repair process, it’s nice to see how your efforts are paying off.\nSo, in addition to the reports you are entitled to through AnnualCreditReport.com every 12 months, consider signing up for free credit monitoring apps that will give you access to your credit report information (and scores) all year long:\n*   Credit Karma (for iPhone and Android users) — Free\n*   Credit.com (for iPhone users) — Free\n*   Credit Sesame (for iPhone and Android users) — Free\n*   WalletHub (for iPhone users) — Free\nTo help you choose, read our reviews of these credit monitoring services.\nOne note of caution before you download these apps, or any others. There are fake apps out there created by fraudsters looking to access your personal and financial information. Ideally, you want to find the download link on the company website. If you can’t find it there, and you rely on a search in your phone’s app store, be on the lookout for misspelled names, misspelled words in the description, and few or no reviews (all of the apps recommended here should have plenty of them).\nFinally, it’s important to note that no personal finance app can do the work of the credit repair process: finding and disputing inaccurate information in your credit reports. Learn more in our free guide to DIY credit repair. END
 TITLE: Credit Repair Solutions to Tough Credit Repair Questions CONTENT: Tough Credit Repair Questions and Answers\n-----------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: April 4, 2017_\nWe know there are a lot of tough credit repair situations out there. We get emails from our readers all the time asking for advice on all kinds of topics from how to fix their credit and rebuild their credit history after filing bankruptcy, to settling debts and dealing with collection agencies.\nUnfortunately, we can not answer every question we get. Below are some of the most common questions we have received as well as a few unique problems. If your question is not answered below, feel free to visit our discussion forums where hundreds of people post credit and debt questions and answers every day. Or, browse through our site where we have posted hundreds of articles on those very same topics.\n**Q.  I declared bankruptcy about two years ago.  Are there some things I should know before applying for credit? Are there any hidden dangers or concerns to worry about?**\n**A.**  The good news is you will eventually be able to get a car loan, home loan, or even a credit card with the same rate as a guy who has perfect credit. It just takes a little time and hard work but you will be able to establish a good credit history.\nYou can be treated as an \"A\" credit risk once you are two years out from a bankruptcy (two full years since the discharge) if you:\n1.  Have re-established **new** credit (not credit cards or mortgages you had before the BK) on at least **three** accounts.\n2.  Have made all your payments on time and have no negative items.\nSo, how do you re-establish credit?\n1.  Get any kind of credit card you can, secured or unsecured, gas cards, or department store cards. Take out a small installment loan with a credit union.\n2.  Maintain a small balance on these new accounts, even if it's only $20, and PAY THEM ON TIME! Make sure to use only 30 percent of the available credit limit - do not max out these new credit cards.\n**Please Note:** For this to work, ALL of the above steps must be followed, no exceptions!\n* * *\n**Q.  If I file Chapter 7 bankruptcy, will it reflect on my spouse's credit report?**\n**A.**  No, your spouse's (ex-spouse or not) bankruptcy will not show up on your credit report. If you have joint credit with your spouse (or ex-spouse) and they include these accounts in the bankruptcy, you may be in trouble, even if the court said your spouse was responsible for this debt.\nFor those married to someone with an old bankruptcy, if you apply for credit\/loans together, it will show up on the joint credit file. If you can swing qualifying for a loan without your spouse's income (meaning you apply for a loan or credit card by yourself), your spouse's credit won't ever be an issue. Otherwise, your spouse's credit may hamper the qualification process.\n* * *\n**Q.  We got in over our heads in debt several years ago, and closed most of our credit card accounts but we still have a ways to go to pay them off. I called the companies to see if we could get our interest rates reduced but I got nowhere with them. Most of them said they couldn't reduce the rate on an inactive account, and I'd have to re-open the account which means having to go through a credit check. Is there anything else I can do?**\n**A.**  Well, as far as reducing your rates, I know you can always \"ask\" lenders to do this, but since you've signed a contract with them to pay at an agreed rate they really don't have to do anything about it for you.\nNow, if you weren't paying on these accounts, and they were seriously delinquent, they might give you a break, figuring something is better than writing off the debt. I haven't heard of rate reductions in such circumstances, but I have heard of them often settling for a lower amount than what is owed.\nWhy not transfer your balance to another card? If you've been paying on time, I think you'd have an army of credit card companies sending you such offers. Yes, it means reapplying, but most of these companies offer very low rates for balance transfer. One source you can look up is our page of recommended credit cards. Or, you can go to a credit union and take out a loan to pay them all off. I am sure their interest rate would be lower than what your credit cards are charging.\n* * *\n**Q.  When I had back surgery, the insurance company paid their portion which was close to $25,000 and now I owe the hospital about $1,900. I called the hospital to set up a monthly payment plan. They said this was not acceptable and the bill must be paid in full and they normally give people just six months to pay and do not accept monthly payments. They suggested that I put this on a credit card. My husband and I have just refinance some debt and I do not want to put that much on a credit card. Will this medical debt show up on my credit report?**\n**A.**  Yes, medical debts can be put on your credit report if your account goes into collections. And, hospitals are notoriously ruthless for sending delinquent accounts to collection agencies. You can handle it however you feel comfortable, but paying them off right away and avoiding a collection procedure may be worth the cost of hurting your credit rating. Maybe look into a small installment loan or borrowing money from a friend or family member if you do not want to put all that money onto a credit card.\n* * *\n**Q.  My Visa account was recently charged-off. The bank called and offered to settle with me for 50% of the amount due. They said if I complied they would note the account as \"settled in full\" on my credit report and if I did not, my credit rating would be further tarnished if other departments and agencies became involved in the collection process. Should I pay them at this point or is my credit already ruined?**\n**A.**  If the credit card company offered to settle, you may be in a good position to further negotiate with them. Contact them and see if they will take even less, say 25 percent of the amount due. If you explain to them you are trying to settle a lot of debts and you only have so much money to go around, they may be interested in taking whatever you can offer them.\nOnce you come to an agreement (in writing of course) with them to pay off the debt, you will want to get the credit company to agree to list your account as \"PAID AS AGREED\", not settled. Listing an account as \"settled\" is a black mark on your credit. You will also want to make sure you have this stipulation in writing from the credit card company so there is no misunderstanding down the road.\nFor more information on how to do this, I urge you to read this article on settling your debts.\n* * *\n**Q.  Can a collection agency issue you a 1099-C for a debt that you owe? Is this really taxable income?**\n**A.**  A 1099-C is a tax form issued to you and the IRS by a company saying that you earned income. The IRS has ruled that forgiven debt should be considered income, and therefore if you settle on a debt, the amount forgiven should be considered income.\nBut, if you haven't a) settled with the collection agency and also you haven't officially had the debt collection agency prove that b) the debt is yours and c) the collection agency owns the debt. Therefore, they shouldn't be issuing you a 1099-C at all, in our opinion. If they do issue an 1099-C, you can appeal this to the IRS. For now, I would send them a letter stating you don't want them to contact you any further. This is also your right under the FDCPA.\n* * *\n**Q.  I was given a default judgment because I didn't show up to court. In fact, I was never notified that I needed to do this. I am attempting to get the judgment set aside because I was never notified of an impending court date. How can I do this?**\n**A.**  You have a judgment against you and the only course of action is for you to file a motion to vacate, since you were not notified of the court date. This is called improper service. In order to file you need to gather the following:\n*   When was the judgment granted? Depending on your state, you typically only have one year or less from the date the judgment was granted to file your motion.\n*   You need to know what the proper method for service is necessary for your state. You can find out the proper method of service in our free process server requirements by state chart.\nIf you follow our guide, you should have no problem filing a motion to vacate on your own, but you still might consider consulting with an attorney. In legal matters, this is always a good idea.\n* * *\n**Q.  My American Express account just went to a collection attorney. I also just enrolled in a debt settlement program to deal with this debt. Should I tell the collection agency I'm in a debt settlement program?**\n**A.**  If you tell the collection agency you are in a debt settlement program, you are pretty much admitting to the debt. This could hurt your chances of a good settlement, and certainly hurt your chances in a lawsuit. Don't do this.\nWhy not handle the debt settlement yourself? Get out of the program you are in and save up the money in a separate account until you have 20% of the balance. You don't need an attorney to make a deal with a collection agency. Many people successfully do this on their own. We have a complete, free, online debt settlement guide on this site. We go over everything in an easy to read, step-by-step methodology.\n* * *\n**Q.  I sent a \"cease and desist\" letter via certified mail to a collection agency asking them to stop collection efforts and they didn't. What can I do?**\n**A.**  You were trying to exercise your rights under a portion of the Fair Debt Collection Practices Act, where you can tell a collection agency to cease contact with you. Unfortunately, in your letter, you used the wrong language. You technically have no right to tell a collection agency to cease collection efforts. Many people make the mistake of using language which does not exercise your rights properly. Exercising your rights under this section of the FDCPA is an all or nothing deal. No contact, period.\nIf you send them the right cease communication letter, and the collection agency continues to contact you after receiving this letter, you can take them to court for violations of the FDCPA.\n* * *\n**Q.  I just submitted a long complaint to the FTC and they sent me an email telling me that they were shipping it off to \"Consumer Sentinel\". This place is accessible ONLY to law enforcement agencies, who have nothing to do with civil matters. I thought we were suppose to have a consumer protection agency, instead our complaints will never be read or acted upon. Who can I turn to now?**\n**A.**  We have found out by calling the FTC, they do put all the complaints into a database called \"Consumer Sentinel\". From this database, attorneys and law enforcement agencies look for a pattern in the database to see if there are frequent complaints about the same company. Then the FTC, your state attorney general or local law enforcement will act to take legal steps against that company.\nYou can always file your complaint directly to your state attorney general regarding the fraudulent practices of a collection agency. They will be eager to hear what you have to say. In some states, the attorney general's office has a separate consumer complaint division, in others, the state AG office records and processes consumer complaints internally. END
 TITLE: Get a Live Person on the Phone in Customer Service CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: May 15, 2015_\nHow many times have you called a company, wanting to talk to a live person, only get caught up and lost in their computer voice directory service. There is nothing more frustrating than having a credit issue you need resolved ASAP and not being able to talk to a live person. This is especially true when trying to call one of the credit reporting agencies, or maybe a collection agency.\nYou've written dispute letters to the credit bureaus to collection agencies and now you just want to talk to a real person. We receive calls every day asking us for information on how to get a live person at the credit reporting agencies. They seems to change their automated prompts all the time. Here are some tips on how to get a live person for _any_ situation, not just for credit repair or debt settlement.\n### Find a Phone Number to Talk to a Human\n1.  Dial-a-Human. This site has an alphabetic company listing of real phone numbers and what to dial to get an actual human - not the robot answering machine.\n2.  GetHuman. This site has you type in the company name and it will give you the option to provide a phone number, have the company call you back, access live chat, or send an email. It is a fairly well-maintained list of how to get past computer prompts.\n3.  Data.com Connect. Use this service to call the CEO's line, and you're sure to get an answer. You do have to sign up for this service.\n4.  Disgruntled customers often post the phone numbers of company officials on consumer websites as revenge. Try phrases like \"I hate company X\" as a search term on Google or Yahoo!.\n5.  You can also use the search terms like \"Company X\" and \"president\" or \"officers\".\n6.  The Securities and Exchange Commission have a complete list of company officers which are public record. You can search for these on EDGAR website.\n### What To Do and Say When You Call\n1.  Press the following keys to try to bypass the automatic prompt system: 0, #0, 0#, 00, #, \\*. You can also just try pressing all the numbers to confuse the system.\n2.  Say the following terms at the voice prompt:\n    *   \"Prospective Member\"\n    *   \"Agent\"\n    *   \"Member\"\n    *   \"Transfer\"\n    *   \"Sales\"\n    *   \"Operator\"\n    *   \"Human\"\n    *   \"Help\"\n3.  Mumble. The computer will not know what to do if it does not understand what you're saying and will send you to a live agent.\n4.  Speak Nonsense. This is my personal favorite. It also confuses the computer and it relieves some of my stress during customer service calls.\n5.  Use Bad Language. Some company voice recognition software will put your call to the head of the line if they hear swearing. The same holds true for speaking loudly or shouting in the phone. They want really frustrated customers to get helped immediately.\n6.  Do nothing. The system will think you're on a dial phone and transfer you.\nYou can also try these **Toll Free**\"411\" numbers:\n*   1-800-GOOG-411\n*   1-800-CALL-411\n*   1-800-BING-411\n*   1-800-FREE-411 (requires listening to a short ad)\n### Contact Their Corporate Office\nWhen all else fails, and this trick has gotten me to a live Equifax customer service rep - look up the local number in the yellow pages. In the case of calling Equifax:\n*   Equifax is based out of Atlanta, Georgia\n*   I just looked up the office number locally.\n*   It was the main switch board to corporate offices.\n*   I asked to speak to someone in customer service - explained why I was calling.\n*   I was put on hold, but it was only 10 minutes, wasn't an outsourced rep, and I did get issues resolved. END
 TITLE: Get a Live Person on the Phone in Customer Service CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
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 TITLE: Learn How to Stop Being Credit Invisible CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 31, 2017_\nIt’s hard to get credit if you have bad credit, but it can be equally challenging if you’ve never had credit at all. That’s what you call being credit invisible, meaning you have no credit history with any of the big three national credit bureaus. And with no history to go on, creditors consider you a risk not worth taking. Fortunately, there are several things you can do to put yourself on the credit map.\n1) Apply for a secured credit card\n----------------------------------\nYou don’t need good credit – or _any_ credit – to get a credit card. All you need is the money to _secure_ the credit card. It might be a couple of hundred dollars; it might be five hundred dollars. Whatever the amount you can afford to part with for a while, that’s how much your credit limit on a secured credit card will be.  Just be sure to only apply for one that gets reported to the credit bureaus every month and shop around for the best deal.\nAfter 12 to 18 months, ask the credit card issuer to upgrade you to a regular credit card account (which they may do automatically). Once you’re upgraded, you will receive your deposit back. In the meantime, treat the secured credit card just like a regular card – use it at least once a month and when the bill comes due, pay the balance in full.\n2) Ask a family member or close friend to make you an authorized user on one of their credit cards\n--------------------------------------------------------------------------------------------------\nThis option isn’t for everyone, but if you feel comfortable asking someone to authorize you as a user on their credit card, here’s how it works:\n*   A credit card holder calls their credit card issuer and asks that you be added as an authorized user on their account (the older the account, the better)\n*   The credit card holder receives your authorized user credit card, which they can give to you, or not (in fact, you may have a better chance of having someone add you as an authorized user if you tell them you don’t actually want to use the card; as long as _they_ are using the card responsibility, it will help your credit)\n*   The credit card account appears on your credit report and is updated every month\n*   Once your credit is established, you can simply be removed as an authorized user\nOf course, there is always the possibility that the person you ask for authorization ends up maxing out the credit card or being late with payments. This will hurt your credit, so be selective with who you ask.\n3) Sign up for a rent-reporting service\n---------------------------------------\nIf you pay your rent on time every month, you should get credit for that. But this isn’t information that is automatically reported to the credit bureaus. You’ll need to sign up for a rent-reporting service. They contact your landlord and verify your on-time payments every month. Though your landlord is not required to do so, it’s worth a try.\nOnce you’re signed up, your rent payment history should appear on your credit reports. They will not, however, be calculated into all of your credit scores. But as reported by NerdWallet, you _can_ expect rent payments to be included in FICO 9, FICO XD, and VantageScore.\nNote, it’s not just on-time rent payments that will be reported. If you’re late, that will be reported, too. So once you sign up for a rent-reporting service, be sure to pay on time.\n4) Make timely payments on your cell phone, landline, and cable TV\n------------------------------------------------------------------\nIf you don’t have enough credit history to generate a traditional FICO Score, you may be issued a FICO Score XD. This takes into account payment history on your cell phone, landline, and cable accounts (as well as any credit bureau data, property data, and public records that may be on file). Once you have a FICO XD, you can expect to be upgraded to a traditional FICO Score after 6 months.\n5) Open an account with a bank or credit union\n----------------------------------------------\nWhile bank accounts do not appear on your credit reports – or affect your credit score in anyway – they will help you build a relationship with a lender. The longer you have checking and savings accounts with a bank or credit union – accounts that you keep in good standing – the better position you’ll be in to apply for a loan through that financial institution.\n6) Apply for a credit-builder loan\n----------------------------------\nWhile a traditional loan allows you to take money from a lender and pay it back later, a credit-builder loan lets the lender put the money into a savings account that you cannot touch until the loan is paid off. Provided you don’t need the money right away, this is a win-win situation. The bank protects itself, as the money you are \"borrowing\" stays in an interest-bearing savings account with them. And you get your on-time monthly payments reported to the credit bureaus, plus that big chunk of money (that’s been kept in a savings) once the loan is paid off.\nAsk your bank or credit union if they offer credit-builder loans. If not, search here for an institution that may be able to help. You can also try online credit-builder loans through sites like Self Lender.\nTrack Your Progress\n-------------------\nOnce you start building your credit, you need to track your progress. Fortunately, there are numerous ways to monitor your credit reports and scores, for free and for a fee. Of these, we recommend:\n*   Free credit reports every 12 months from AnnualCreditReport.com\n*   Free credit monitoring subscriptions from Credit.com (for Experian) and Credit Karma (for TransUnion and Equifax)\n*   Free FICO Score through Discover or your credit card issuer\nLearn more about credit monitoring.\nTreat Your Credit Right\n-----------------------\nThe only thing worse than no credit is bad credit, so once you have it, don’t mess it up. Avoid the pitfalls with 9 no-nonsense ways to build the best credit. END
 TITLE: Paying Off Debt - How Will It Affect Your Credit Score CONTENT: Will Paying Off a Collection Remove it From My Credit Report?\n-------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: April 4, 2017_\nIf you have a collection on your credit report, it is likely severely affecting your credit score. Even though debt collections will affect your credit less as they get older, the entries will remain on your credit report for seven years for future lenders to see. You can improve your credit score by getting these collection accounts deleted from your credit report or have them be reported \"Paid\" or \"Current\". But before you pay off those debts, we have some tips for you so you and your credit report come up on top.\nWhat is a Collection?\n---------------------\nA collection is a severely past due account that has been turned over to a collection agency to pursue payment. These debts are assigned or sold to collectors and collection accounts often change hands every six months or so. After the original creditor moves your overdue account to a collection agency, this account will now be noted as a a charged-off. So now, your credit report has a double whammy on it, a charge-off and a collection.\nWays to Remove the Debt From Your Credit Report\n-----------------------------------------------\nFirst of all, if the debt is not yours, you are not required to pay it and collectors are not allowed to list it on your credit report. To dispute a debt that is not yours, use our credit report dispute letter and request the credit bureaus remove the debt from your credit report.\nIf the debt is yours, that does not mean the collector is legally able to collect it from you. Using our debt validation techniques, you are requesting the collector to prove you owe the debt. If they don't respond or can not prove you owe the debt, it must be removed from your credit report.\nLastly, according to the Fair Credit Reporting Act (FCRA), past due accounts can only remain on your credit report for seven years from the first date of delinquency. If the seven year period is up, dispute the debt with the credit bureaus.\n### Paying Off the Debt\nIf you can not remove the debt by disputing it, you can negotiate with the collector to have the account removed in exchange for payment. Here are some possible payment scenarios. We have listed them from best to the least ideal ways to deal with these debt collectors:\n1.  **Negotiate with the debt collector to have debt removed.**  Send a written request to the collection agency offering a settlement payment if they agree to delete the account from your credit report. Wait for a written response back from the collector BEFORE making any payments. Here is more info on pay for delete techniques.\n2.  **Pay debt in full and have it removed.**  Most collectors want payment in full and will not delete the account from your credit report for a settlement payment. If this is the case, offer to pay the account in full in exchange for the collector deleting the account from your credit report. Again, be sure to have all of this in writing BEFORE making a payment.\n3.  **Have account updated with \"Paid in Full\" if they won't remove the debt.**  Ideally, you want the entry completely removed from your credit report, but not all collectors are willing to do this even if they receive a full payment. If you can not get them to completely remove the account, offer them a settlement LESS THAN the full amount and get the creditor to update the account as \"Paid in Full.\" Make sure to have this agreement in writing.\n4.  **Settle account as \"Paid. Settled\" if they won't remove the debt.**  If you are able to settle the debt for a lesser amount, but you can't get the creditor to update it to paid in full, this is the listing you will see for this debt. Keep in mind this will NOT boost your credit score as much as if you had the account status changed to \"Paid in Full.\"\nSo, the bottom line is paying off a debt with a collection agency may or may not get it completely removed from your credit report. It depends on how willing the collection agency is to work with you and if they will agree to taking a payment in exchange for deleting the account from your report. Some agencies are better to deal with than others. If you are not in a hurry to get the account deleted, play the waiting game with them. The longer you make them wait, the better your chances are of settling this account with a favorable status on your report. END
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 TITLE: How Collections and Charge-Offs May Affect Your Credit CONTENT: How Will a Collection Affect Your Credit Score?\n-----------------------------------------------\n###### Written by: Kristy Welsh\nYour credit score is an important number. It is how a lender or creditor quickly decides whether or not you are creditworthy. A FICO credit score ranges from 300 to 850 points and the higher your credit score, the better. To make the most out of your credit, you need to be aware of the factors that go into calculating your credit score and what factors take the biggest toll on your score. Charge-offs and collections lead the pack in being two of worst possible items you can have on your credit report.\nCollections - How Did Your Account Get There?\n---------------------------------------------\nWe all know the current economy is not that great. Money is tight and you might be finding it hard to keep within your budgeted monthly expenses. This means trimming back on some expenses to meet other financial obligations. One thing leads to another and before you know it, you are 4 to 6 months behind on that credit card payment. Chances are that credit card company has been calling you but you're not answering the phone. You need to face the music — you are over your head in debt.\nBy now, the credit card company has pretty much given up on you. They have \"charged-off\" your account (i.e., written if off their books) and they have now turned your account over to a collection agency. Debts can be either assigned or sold to collectors and collection accounts change hands every six months or so. How will this collection affect your FICO Score and can you recover from this ding on your credit report? Let's look at what goes into a credit score and then see how we can help you dig yourself out of this mess.\nPayment History\n---------------\nAs you probably know, late payments will negatively affect your credit score. A 30-day late payment can lower your score anywhere from 60 to 110 points. Just image what an account in collections will do.\nAccording to myFICO.com, your payment history makes up 35 percent of your credit score. This is the largest category percentage-wise and it contains these factors:\n*   Types of accounts\n*   Presence of adverse public records — i.e., bankruptcy, judgements, law suits, liens, collections\n*   Severity of delinquency (how long past due)\n*   Amount past due on delinquent accounts or collections\n*   Recency of delinquent accounts or collections\n*   Number of past due items on file\n*   Number of accounts listed as \"Paid as Agreed\"\nWhen a creditor thinks you are not going to pay at all on your credit card bill, they charge-off your account. A charge-off is one of the worst entries that can appear on your credit report and it will remain on your credit report for seven years from the date it first went delinquent. An unpaid charge-off will affect your credit score more when it first happens. As time passes, the affect lessens and your score can increase slightly.\nAfter an account has been charged off, creditors will often use third-party debt collectors to try to collect payment from you. A collection status is then entered onto your credit file so now you have two big negative items all on the same account; a charge-off and a collection. This does not bode well at all on your credit score.\nAs you can see from the breakdown of payment history factors, the more severe the delinquency, the more money that is past due, and the more recent the collection all produce a devastating hit to your credit score. Since FICO keeps the actual point decrease for any infraction pretty close to the vest, we can't tell you exactly how many points your score will go down from a charge-off or a collection. But we can assure you it will be a lot.\nCan You Get a Collection Off Your Credit Report?\n------------------------------------------------\nThat is a great question! And the answer is yes and no. It is obviously better to forgo the charge-off–collection path altogether, but we understand things happen and you just may have no choice. We have actually dedicated quite a few articles to the area of repairing your credit by removing negatives and collections. Check out some of these articles:\n*   Repair Your Credit\n*   Fair Debt Collection Practices Act (FDCPA)\n*   Five Methods of Dealing with Collections\n*   Will Paying Off a Collection Remove it From my Credit Report?\n*   Debt Validation END
 TITLE: State Listing for Statute of Limitations on Judgments CONTENT: ###### Written by: Kristy Welsh\nState by State List of Statute of Limitations for Judgments\n-----------------------------------------------------------\n_Last Updated: April 4, 2017_\nAfter a creditor wins a lawsuit against you and is awarded a judgment by the court, there is a time limit for collecting that judgment. To find out what the statute of limitations on judgments is in your state, and what the allowable interest rate would be on that amount, use our seach function below.\nTo find out the statute of limitations on **_ordinary_** types of debts — oral, written, promissory notes, and open-ended accounts in your state — go to our article titled Statute of Limitations on Debts.\nThe state you use to determine the statute of limitations is the state in which the judgment was granted.\nTypically, the court will try and contact you via mail, but they do not need proof that you were contacted, and you do not have to be present for your creditor to win. The creditor only has to provide proof that the debt is owed. You want to avoid this at all costs; for it is after a judgment is issued that a creditor can seize bank accounts, assets, or garnish wages. In addition, it is easy to renew a judgment once its statute of limitations has passed. In effect, if the creditor is diligent about his renewals, you could find yourself in the position where a judgment against you never expires. A judgment will drop off your credit report after seven years, but your creditor can hound you until the debt is paid. END
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 TITLE: Legal Rights When Dealing with a Collection Agency CONTENT: What Are My Rights Regarding Collection Agencies?\n-------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: April 3, 2017_\nAre you behind on your credit card payments and your balances are more than you can pay off? If so, chances are you have not made a payment on your credit cards in over 3 months and now your creditors have turned your case over to a collection agency. Now, instead of getting constant phone calls from your creditors, you are getting phone calls from some collection agency trying to collect on this debt. Do you have to put with this? Are they allowed to call you day and night? Can they contact your immediate family? These are all things the collection agency will try to get away with, but more often than not, they are in violation of the rules set forth by the Fair Debt Collection Practices Act (FDCPA).\nThe FDCPA was instituted to eliminate abusive practices in the collection of consumer debts, to promote fair debt collection, and to provide consumers with a way of disputing and obtaining validation of debt information in order to ensure the information's accuracy. The act created guidelines under which debt collectors may conduct business.\nProhibited Conduct by a Collection Agency\n-----------------------------------------\nThe FDCPA prohibits the following conduct when attempting to collect a debt:\n*   **Hours for Phone Contact.** Contacting consumers by telephone outside the hours of 8 a.m. to 9 p.m. local time is prohibited.\n*   **Failure to Cease Communication Upon Request.** Communicating with consumers in any way after receiving _written_ notice that said consumer wishes no further contact or refuses to pay the debt.\n*   **Engaging a Person in a Telephone Conversation Repeatedly or Continuously.** This is with intent to annoy, abuse, or harass any person at the number called.\n*   **Contacting a Person at Their Place of Employment.** After having been told this is not acceptable and prohibited by the employer.\n*   **Contacting a Person Known to be Represented by an Attorney.**\n*   **Communicating with Consumer After Request for Validation Has Been Made.** Communicating with the consumer after receipt of a consumer's _written_ request for verification of a debt made within the 30 day validation period (or for the name and address of the original creditor on a debt) and before the debt collector mails the consumer the requested verification or original creditor's name and address.\n*   **Misrepresenting the Debt.** Using deception to collect the debt by claiming to be an attorney or a law enforcement officer.\n*   **Publishing Consumers Name or Address.** Putting this person on a \"bad debt\" list.\n*   **Seeking Unjustified Amounts.** Collection agency is demanding amounts not permitted under applicable contract or law.\n*   **Threatening Arrest or Legal Action.** The threat to take any action that cannot legally be taken is prohibited.\n*   **Using Abusive or Profane Language.**\n*   **Contacting Third Parties.** Revealing or discussing your debt with neighbors, co-workers, family members (other than spouse), or friends is strictly prohibited.\n*   **Reporting False Information on a Consumer's Credit Report.** Threatening to do so in the process of collection.\nRequired Conduct by a Collection Agency\n---------------------------------------\nThe FDCPA requires debt collectors adhere to the following actions:\n*   **Identify Themselves and Notify the Consumer.** In every communication, that the communication is from a debt collector, and that any information obtained will be used to effect collection of the debt.\n*   **Give the Name and Address of Original Creditor.** Upon the consumer's written request and made within 30 days of receipt of the notice.\n*   **Notify the Consumer of Their Right to Dispute the Debt.** This must be done in writing within 5 days of contacting the consumer by telephone.\n*   **Provide Verification of the Debt.** If consumer sends a written request for verification within 30 days, then the debt collector must either mail the consumer the requested verification information or cease collection efforts altogether. Verification should include at a minimum the amount owed and the name and address of the original creditor.\n*   **File a Lawsuit in a Proper Venue.** A debt collector may file a lawsuit, only in the place where the consumer lives or signed the contract.\nKnow Your Rights When Dealing with Collection Agencies\n------------------------------------------------------\n**May a debt collector contact any person other than you concerning your debt?**  \nIf you have an attorney, the debt collector may not contact anyone other than your attorney. If you do not have an attorney, a collector may contact other people, but only to find out where you live and work. Collectors usually are prohibited from contacting such permissible third parties more than once. In most cases, the collector is not permitted to tell anyone other than you and your attorney that you owe money.\n**What is the debt collector required to tell you about the debt?**  \nWithin five days after you are first contacted, the collector must send you a written notice telling you the amount of money you owe; the name of the creditor to whom you owe the money; and what action to take if you believe you do not owe the money.\n**May a debt collector continue to contact you, if you believe you do not owe money?**  \nA collector may not contact you if, within 30 days after you are first contacted, if you send the collection agency a letter stating you do not owe money. However, a collector can renew collection activities if you are sent proof of the debt, such as a copy of a bill for the amount owed.\n**What can I do if a bill collector violates the FDCPA?**  \nFirst, try to get the collector back on the phone and repeat whatever you said the first time that caused the collector to make the illegal statement(s). Have a witness listen in on an extension or tape the conversation. Taping is permitted without the collector's knowledge in all states except California, Connecticut, Delaware, Florida, Illinois, Maryland, Massachusetts, Michigan, Montana, New Hampshire, Pennsylvania and Washington.\nThen file a complaint. You can even file a complaint if you don't have a witness, but a witness helps. File your complaint with the Federal Trade Commission, 6th & Pennsylvania Ave., NW, Washington, DC 20850, 202-326-2222. You can also file a complain with your state consumer protection agency (who in some cases is your state attorney general's office).\nFinally, send a copy of your complaint to the creditor who hired the collection agency. If the violations are severe enough, the creditor may stop the collection efforts. If the violations are ongoing, you can sue the collection agency (and the creditor that hired the agency) for up to $1,000 in small claims court for violating the FDCPA. You probably won't win if you can prove only a few minor violations. If the violations are outrageous, you can sue the collection agency and creditor in regular civil court.\nDos and Don'ts When Dealing with a Collection Agency\n----------------------------------------------------\n#### What TO DO When Dealing with a Debt Collector\n1.  **Get Copies of Your Credit Reports.** You can obtain free copies of your credit reports once a year from AnnualCreditReport.com. Once you have obtained a credit report from all three major credit reporting agencies, TransUnion, Experian, and Equifax, go through each one with a fine-toothed comb. This provides you with a point of reference for debt collections. Look for the debt in question, note the amount shown on the report and compare that to what you're being asked to pay.\n2.  **Request Debt Validation.** Before paying on an old debt or negotiating a deal, force the creditor to provide proof of the debt. We have a standard letter you can send to each of the credit reporting agencies asking them for debt validation. \n3.  **Dispute the Debt With the Credit Bureaus as Many Times as Possible.** There are a number of instances under which you may not be required to pay on the debt.\n4.  **Write Cease and Desist Letters.** If your debt has been sold to a third-party collector from the original creditor, is is your legal right to stop said collectors from calling you. It does require a formal cease and desist letter, which you should be prepared to send as many times as it takes for them to stop.\n5.  **Document All Communication.** Record all phone conversations, make copies of all written communication, and send all dispute and cease-and-desist letters via certified mail. This will be the proof you may need if and when a credit agency or debt collector claims they didn't receive anything.\n#### What NOT to Do When Dealing with a Debt Collector\n1.  **Believe Anything the Debt Collector Says.** You must rely on your own resources to know your rights and legal obligations:\n    *   Get copies of your credit reports.\n    *   Familiarize yourself with the Fair Debt Collection Practices Act.\n    *   Review our articles on debt settlement and credit repair.\n    *   Post questions to our forum.\n2.  **Pay or Negotiate Old Debt Before the Debt Validation Process.** Regardless of whether a debt belongs to you or not, debt collectors are legally required to provide proof. \n3.  **Use and\/or Apply for Other Lines of Credit.** If you cannot afford to pay your current creditors, it is fraudulent (i.e., illegal) to continue to use and\/or apply for more.\n4.  **Try to Hide Money.** Hiding money or assets is also considered fraudulent. This includes any transfer of funds to friends or family.\n5.  **Ignore Debt Collectors.** One way or another, debt collectors will find a way to get your attention. Worst case scenario, that means a lawsuit. So instead of ignoring phone calls and throwing away collection letters, let them know you cannot pay and, in the meantime, instigate the debt validation process. END
 TITLE: Legal Rights When Dealing with a Collection Agency CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Stop Debt Collector and Collection Agency Harassment CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: April 3, 2017_\nIf you have fallen behind on your payments and you owe money, chances are a debt collector or collection agency is calling you day and night. Debt collectors make a living attempting to recover money owed and they will apply the thumbscrews in an attempt to get consumers to pay them. As evident by an increase in consumer complaints seen by the FTC, debt collectors are willing to threaten and harass consumers in order to collect money. If you are being called by a debt collector, it is important you know your legal rights.\nWhat Collection Agencies Are Not Allowed To Do When Collecting a Debt\n---------------------------------------------------------------------\nAs stated before, the FDCPA affords strict guidelines that debt collectors must follow when attempting to collect on a debt. The following practices are _**ILLEGAL**_:\n*   Call you at your place of employment\n*   Call your home before 8 am or after 9 pm\n*   Address you in an abusive manner\n*   Call your family or friends in an attempt to collect your debt\n*   Harass you\n*   Make false or misleading statements\n*   Add unauthorized charges\nIf any one of the above is happening to you, tell the collection agency to stop harassing you. If it continues, ask for their name and address and report it to the Better Business Bureau, the Federal Trade Commission (see below), or your state's attorney general's office. The Fair Debt Collection Practices Act also states that you can demand the collection agency stop contacting you, except to tell you that the collection efforts have ended or that the creditor or collection agency will sue you. However, you must put your request in writing.\n**Please note:** The FDCPA applies only to bill collectors who work for collection agencies, not the original creditors. You will not be able to get the collection department in your credit card company to stop calling you with a letter. Only New York City has a local consumer protection law that requires the original creditor to stop calling you after a written request to do so.\nWhat if the Collector Breaks the Law?\n-------------------------------------\nIf a bill collector violates the FDCPA, see if you can record the illegal behavior. Recording a conversation is permitted without the collector's knowledge in all states except CA, CT, DE, FL, IL, MD, MA, MI, MT, NH, PA, and WA. At the very least, record everything the bill collector says in some form of a written log. Be sure to include the dates of the conversations. The next step is to file a complaint in writing. You can even file a complaint if you don't have a witness to any of these conversations, but a witness helps. The correct agency to file your complaint with is the FTC. You can even file a complaint online:\nFederal Trade Commission  \n6th Street & Pennsylvania Avenue NW  \nWashington, DC 20850  \n202-326-2222  \nFTC.gov\nNext, complain to your state consumer protection agency and send a copy of your complaint to the creditor who hired the collection agency. If the violations are severe enough, the creditor may stop the collection efforts.\nIf the violations are ongoing, you can sue the collection agency (and the creditor that hired the agency) for up to $1,000 in small claims court for violating the FTC regulations (note: you probably won't win if you can prove only a few minor violations). If the violations are outrageous, you can sue the collection agency and creditor in regular civil or small claims court.\nCommon Illegal Collection Tactics and Rebuttals\n-----------------------------------------------\nSome collection agencies do employ collection methods involving the use of false and misleading statements. Just like any other high pressure salesman, these guys will make lots of \"helpful\" suggestions to get you to close the deal NOW. They will always try to get you to pay up right then and there. Here are some examples of their underhanded tactics.\n*   Insist you FedEx a check to them\n*   Charge the balance owed on another credit card\n*   Try to get you to pay by electronic check\nWhile the FDCPA allows a collector to add interest if your original agreement calls for the addition of interest during collection proceedings, or the addition of such interest is allowed under state law, it is not necessary to spend the money or risk your checking account for any of the above methods. The three or four days it may take to mail a payment with a first class stamp, if they do decide to come after you for interest, won't break the bank.\nWhat if You Can't Pay the Debt Collector?\n-----------------------------------------\nIt is generally in your best interest to settle your debts as quickly as possible, or use our debt validation techniques. Before obtaining a court judgment, a bill collector generally has only one way of getting paid: Demand payment by calling you and sending you threatening letters. If you refuse, the collector can't do much else short of suing you. Once the debt collector does sue you and gets a judgment, however, you can expect more aggressive collections actions such as:\n*   The collector will try to garnish up to 25 percent of your net wages.\n*   The collector may also try to seize any bank or other deposit accounts you have.\n*   If you own real property (real estate), the collector will probably record a lien, which will have to be paid when you sell or refinance your property.\nCircumstances to Watch Out For If You Do Settle Your Debt\n---------------------------------------------------------\nSome collection agencies will agree to settle with you for far less than you owe and then turn around and hire another collection agency to collect the difference. However, in many states this is illegal. Once a creditor deposits or cashes a full payment check, even if they strike out the words \"payment in full\" or writes, \"I don't agree\" on the check, they can't come after you for the balance. The states in which this law is enforced include: Arkansas, Colorado, Connecticut, Georgia, Kansas, Louisiana, Maine, Michigan, Nebraska, New Jersey, North Carolina, Oregon, Pennsylvania, Texas, Utah, Vermont, Virginia, Washington, Wyoming.\nSome states have modified this rule. In the following states, if a creditor cashes a full payment check and explicitly retains his right to sue you by writing \"under protest or without prejudice\" with his endorsement, then they can come after you for the balance. But those exact words must be used. If they write \"without recourse,\" communicates with you separately, notifies you verbally, or writes on the check that it is partial payment, it is not enough: Alabama, Delaware, Massachusetts, Minnesota, Missouri, New Hampshire, New York, Ohio, Rhode Island, South Carolina, South Dakota, West Virginia, Wisconsin.\nThe bottom line when dealing with debt collectors is to know your rights and don't fall for their scare tactics. Become familiar with the FDCPA guidelines and if you think you are being harassed, be sure to file a complaint against them with the FTC. We have a lot of other very informative articles on our site regarding debt collectors and collection agencies. Another great resource is our discussion board where you can ask questions for free and get a lot of great advice. END
 TITLE: Stop Debt Collector and Collection Agency Harassment CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Detect the Collection Agency Violations in This Collection Call CONTENT: ###### Written by: Kristy Welsh\nThe Fair Debt Collection Practices Act, FDCPA, has very strict guidelines as to what debt collectors can and can not do when attempting to collect on a debt. Collection agencies will try all kinds of underhanded tricks to get you to pay a debt — which might sound great if you are trying to rebuild your credit. You might also be contacted by a debt collector regarding a friend or family member's debt. It is imperative you know your rights and you are aware of actions these bottom feeders might try that are illegal and could get them sued.\nFind the FDCPA Violations\n-------------------------\nSo, we are going to play a little game called \"Find the Collection Agency Violations.\" A year or so ago, a reader posted this on our discussion boards. It is a transcript of a phone call which contained numerous violations made by a collection agency during the phone call.\nCan you spot the violations? Now don't cheat as the answers are given below. This exercise will help you to identify collection agency practices and what to look for during a call. It may also help you to get rid of a collection.\n\"I got a call on my wife's phone tonight from CBE or something of that sort. I know she still has some credit issues coming out of the woodwork, so I started the tape recorder up and answered the phone.\nMike was the rep's name and he asked for my wife. I told him she wasn't there - she was at the store. He asked for her by her maiden name and then ask if I was Mr. Maiden name. I said \"No.\" He then proceeded to ask when was a good time to get a hold of her. I said I don't know but if you leave your information I'll give it to her. He said \"OK, well my name is Mike and I'm with CBE and our number is 800-XXX-XXXX.\" I said, \"Hey Mike, so can I tell her what this is pertaining to?\" Mike said, \"Yeah, it's about a hospital bill that is now in collections and I need to speak with her about paying it.\" I said, \"Really? Well how much does she owe you?\" Mike continued, like nothing was wrong, \"One hundred-fourteen dollars and it is from February 2008, when she had XXXXXX performed.\"\nI know we had already paid this because we had issues with the insurance and the double coverage she had at the time so I say, \"You guys have all that information right in front of you......I'm impressed!\" And he goes on to say, \"Yeah, they give us everything we need to track these kind of people down. A lot try to hide from us but we can find them.\" At this point I'm think it's time to let Mike in on my little secret. So I say, \"Hey Mikey, do you know how I know (wifey)?\". He says, \"No.\" And I say, \"Well why hasn't your company ever sent her a letter?\" Now I think Mikey is getting worried because he starts to sound really confused. He says, \"Well, we don't have her address.\" And I say, \"So you are collecting for XXXXX hospital and I know they have her address, so why didn't they give it to you?\" Mikey isn't full of a lot of answers right now so I explain that I have just recorded the whole conversation and then he gets a little mad. I guess he thought we were friends. He tells me that I illegally taped the conversation and if I don't destroy it that I'll go to prison. I casually explain how Iowa (where I live) and Nebraska (his state) are both one party consent states and that the recording is perfectly legal. Then I explain the damage he has done.\nWell, after giving Mikey the once over about his illegal practices (citing the FDCPA and Iowa laws) and how I think people who try to collect and use illegal tactics are scumbags, Mikey starts to bargain with me. Yes - he actually starts to ask me what he can do for me. He starts offering to settle for $10.00 as long as I don't tell anyone about this conversation (I am still recording Mikey, by the way). He says he can get the account deleted from their system and I won't have to pay a dime. I tell him, \"No thanks - violations are worth a lot more than $114.00.\" He starts to get this attitude like I should help him out or something. I decide to end the fun and I tell him that he should get a different job because I wouldn't be surprised if he was held personally responsible for the law suit. And then I say, \"Well I'm gonna go now.....Oh and by the way, we already paid that bill so maybe you should look into that.\" He says, \"Oh,\" and then I say goodbye.\"\nWhat Violations Were Made By The Collection Agency?\n---------------------------------------------------\n1.  **The Collector Gave Out Information About The Collection to a Third Party.**  It's not OK for a collection agency to call a co-worker, neighbor or family member and ask them for contact information. The collector started out properly, but when prompted, easily gave out private information. This is a violation of The Fair Debt Collection Practices Act:\n    > **804\\. Acquisition of location information \\[15 USC 1692b\\]**\n    > \n    > Any debt collector communicating with any person other than the consumer for the purpose of acquiring location information about the consumer shall --\n    > \n    > (2) not state that such consumer owes any debt;\n2.  **Tried to Collect on a Debt Which was Already Paid.**  This is definitely a misrepresentation of the debt. The violation of the FDCPA:\n    > **807\\. False or misleading representations \\[15 USC 1962e\\]**\n    > \n    > (2) The false representation of --  \n    > (A) the character, amount, or legal status of any debt; or\n3.  **Threatened to Sue if the Consumer Did Not Destroy the Tape.**  It was perfectly legal for the consumer to tape the conversation, as both the states were one-party states. One party means that a phone conversation can be taped as long as one of the participants gives permission and that can be the person taping and participating in the conversation. All but 12 states in the U.S. are one-party states. So the violation of the Fair Debt Collection was:\n    > **807\\. False or misleading representations \\[15 USC 1962e\\]**  \n    > (5) The threat to take any action that cannot legally be taken or that is not intended to be taken.\n4.  **Tried to Bribe The Consumer.**  The collector suggested that he would pay $10 if the consumer would not report his illegal actions. I don't know about you, but this sounds like bribery to me. Definitely illegal. This would be a violation of the Fair Debt Collection Practices Act:\n    > **807\\. False or misleading representations \\[15 USC 1962e\\]**\n    > \n    > (2) The false representation of --  \n    > (B) any services rendered or compensation which may be lawfully received by any debt collector for the collection of a debt.\nActions Against the Collection Agency\n-------------------------------------\nNow that you saw the violations committed by that particular debt collector, what actions could that consumer have taken against the collector? The consumer could take the collection agency to court and win on violations of the Fair Debt Collection Practices Act. Armed with the taped conversation, it would be a slam-dunk. The best result, though, was that the consumer got rid of the collection agency and ensured that he and his wife would no longer be bothered. END
 TITLE: Detect the Collection Agency Violations in This Collection Call CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Detect the Collection Agency Violations in This Collection Call CONTENT:    |  |  |  | \n: . END
 TITLE: Tips on Finding a Credit Card For Bad Credit CONTENT: How to Find a Credit Card If You Have Bad Credit\n------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 21, 2017_\nAs counterintuitive as it might seem, you do _not_ need good credit to qualify for a credit card. Granted, there may be fees, high interest rates, and cash deposits involved, but no matter your credit score, a credit card is absolutely within reach.\n**Where to Look**\n-----------------\nBeyond your mailbox, please. The offers you get in the mail are probably not the best deals you can find. Hold on to them, but dig deeper for comparison.\n1) Look through our list of recommended credit cards for bad credit.\n2) Look at credit card comparison sites, like Bankrate, Nerdwallet, and CardHub.\n3) Join free credit monitoring sites, like Credit Karma, Credit Sesame, Quizzle, and WalletHub. You’ll not only see your credit score and credit report information, but also targeted credit card offers that your credit likely qualifies you for.\n**What to Look For**\n--------------------\n### **What kind of credit do you need to qualify for the card?**\nMake sure it says \"Bad\" or \"Poor.\" If you mistakenly apply for a credit card geared toward those with good credit, you’ll be turned down. That means you’ll have to apply for another card for which you qualify. That’s not only a hassle, but also means multiple hard inquires on your credit reports, which puts a dent in your credit score.\n### **Is it a** **secured credit card****?**\nThis is a type of card for which you are asked to provide a cash deposit to secure the credit line – a credit line that is typically the same as the deposit amount.\nNow, there are _unsecured_ credit cards out there for those with bad credit, no cash deposit required. However, you’ll likely be asked to pay higher fees and interest rates. So if you have the cash on hand, go the secured credit card route. Once you use it to prove your creditworthiness, you can upgrade to a regular credit card and get your deposit back.\n### **Do they report to the credit bureaus?**\nThe number one reason to get a credit card for bad credit is all the good it can do your credit score. But that won’t happen if your credit card issuer isn’t reporting all of your positive payment history to the credit bureaus. Make sure Experian, TransUnion, and Equifax are getting the message.\n### **What’s the minimum deposit?**\nYou may see ranges between $49 and $300. So make sure you can part with whatever amount of cash is needed to qualify. Again, it’s only temporary; you can get your cash deposit back when you upgrade to a regular card.\n### **What are the credit card fees?**\nThese will vary quite a bit from one credit card offer to the next. Look carefully at what they want for:\n*   Application fee\n*   Annual fee\n*   Interest fees\n*   Balance transfer fee\n*   Cash advance fee\n*   International use fee\n*   Late fee\nDo the math and figure how much this card is really going to cost you. That said, there are a couple of ways to avoid these fees altogether. You can avoid late fees, of course, by paying on time, every time. But what’s not always so obvious to people is that you can avoid interest fees by paying the balance in full every month.\n### **Will it automatically upgrade to a regular credit card?**\nAssuming you go with the secured credit card option (recommended), you’re going to want to upgrade to a regular card after 12 months. That’s about how long it takes to prove yourself to a credit card issuer. Ideally, you have the option of upgrading the secured credit card with the same issuer, at which time your cash deposit will be returned to you.\nIf they do not offer the upgrade option, you may still opt to go with them anyway, as you can always apply for a regular card through a different issuer 12 months from now. If approved, you can simply cancel the secured credit card and get your deposit back.\n**What to Do When You Find It**\n-------------------------------\nTreat it right. That means following good credit practices from here on out. Use the card regularly, but never more than 30 percent before paying it off again. Make your payments on time, but never for the minimum amount; pay it off, returning the balance to zero every month.\nKeep that up from here on out and you should be in pretty good shape, as you’re well on your way to creating the kind of credit that can change your financial life. END
 TITLE: Rebuild Your Credit After Being Released From Prison CONTENT: How to Rebuild Your Credit After Spending Time in Jail\n------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: April 4, 2017_\nThis article may not apply to you directly but maybe you know someone who was just released from prison. Or, if you were on the wrong side of the law and had to spend some time in jail, chances are your credit suffered as a result of being behind bars for a lengthly period of time. Now that you have been released from prison, you will want to start to put your life back together but doing that can be difficult. Years of no credit activity, past due bills going to collections, possible medical bills with no insurance to cover them, and a job making minimum wage all points to a long road ahead of you to get to financial stability. But take heart, you can get back on your feet and we have some tips to get you on the right track and help you rebuild your credit.\nRemember You Are Not Alone \n---------------------------\nWe don't want to downplay your hardship because you do have a long road ahead but the first thing to remember is that you are not alone. The world is full of people who are forced to pull up their boot straps and start all over again. People go through a messy divorce, bankruptcy, fire, flood, earthquake, lose a loved one, each and every day and they push on with their lives. You can, too! Probably one piece of helpful advise we can give is to try to find some type of support group for recently released prisoners. This can be very helpful mentally to be able to talk with others going through the same things as you.\nTips to Rebuild Your Credit \n----------------------------\nOnce you have your personal issues in check, now it is time to work on your credit. Here are some tips to help you rebuild your credit from ground zero as quickly as possible.\n**Talk to Your Bank.** If you have a checking and\/or savings account, go in person to that bank and talk to someone face to face. Explain your situation and see about getting a low-limit credit card from them. If you don't get a positive response from them, try a credit union. They're often easier to deal with than the big, national banks.\n**Get a Co-Signer on a Loan.** If you can find a friend or relative that will agree to be a co-signer on a loan or credit card, this will help your credit immensely. It might be hard to find someone to put their credit on the line for you, but you will never know until you ask.\n**Become an Authorized User on Someones Credit Card.** This is a bit different than getting a co-signer in that you are being tied to someone else's credit card. That person still remains legally liable for the debt, but you get a credit file established. Piggybacking on someone else's credit file gives you an instant credit history — so make sure it is a good history and it stays a good history, if you know what we mean.\n**Open a Department Store Charge Account.** This type of credit account is generally very easy to get but they can have high interest rates. Our suggestion is to get a charge account at a department store that you like to shop at and use it a few times each month. The most important part of this plan it to make sure you pay off the balance at the end of each month. You don't want to pay that high interest rate and you want this account showing activity and responsible management — both are great in increasing your credit score.\n**Get a Secured Credit Card.** If you are unable to get an unsecured credit card from a bank or credit union, then apply for a secured credit card instead. Yes, you do have to put up money in a savings account as collateral, but these cards do report activity to the credit bureaus which will help you establish a credit history. Make sure you read all the fine print before getting this card as there are some really, really bad ones and there are some really great ones. Watch out for high fees, make sure they report to the CRA's, and see if it will eventually turn into an unsecured card after a year or two of on-time monthly payments.\nAs we said before, anyone who has had to start over can do it but you need to make sure you do not get too overwhelmed and too impatient. Take it slow and build up your credit gradually little by little. Then pull your credit reports each year to see how you are doing and to make sure your credit score is increasing. If you follow our easy tips, you will see a positive credit history develop in no time.\nWe also have numerous other articles regarding ways to rebuild your credit. Here are just some ways you can rebuild your credit:\n*   Use Credit Unions\n*   Rebuild Your Credit Without Using Credit Cards\n*   Pros and Cons of Prepaid and Secured Credit Cards\nFollow these simple steps and keep reminding yourself there is light at the end of the tunnel. Keep a positive outlook and ask for help when needed — there are a lot of companies and people out there that are willing to give a helping hand. END
 TITLE: What is a Credit Score CONTENT: Basics of Credit Scoring\n------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nYour credit score can mean the difference between being denied or approved for credit, and a low or high interest rate. A good score can help you qualify for an apartment rental or a job and even get your utilities connected without putting up a deposit.\nBut, most Americans do not understand what goes into computing their credit score or how their score will affect their ability to get a mortgage, car loan, or a credit card. This comes from a survey of 1,000 adult Americans commissioned by the non-profit Consumer Federation of America. Also revealed was that even those who have obtained their scores have serious knowledge deficiencies about what is all means.\nA credit score is a three-digit number generated by a mathematical algorithm using information found on your credit report. This number is designed to predict risk, specifically, the likelihood that you will become seriously delinquent on your credit obligations in the 24 months after scoring.\n**What Types of Scoring Models Are There?**\n-------------------------------------------\nThere are a multitude of credit-scoring models in existence, but one dominates the market: the FICO (Fair Isaac Corporation) Score. FICO has been in business since the 1950s but began the famous FICO Score in the mid-1980s. The highest FICO score is 850 and the lowest is 300. According to myFICO.com, 90 percent of all financial institutions in the U.S. use a FICO Score in their decision-making process.\nThere is another scoring model out there called VantageScore. The big three credit reporting agencies decided to create their own credit scoring model which would replace the Fair Isaac model. VantageScore was launched in March of 2006 and in 2015, the third version, VantageScore 3.0, was unveiled. This update now uses the same scoring scale as FICO, 300 to 850, making it easier for consumers to interpret and mange their scores.\n**How Does Credit Scoring Work?**\n---------------------------------\nYour daily transactions are followed by computers at service provider centers and these centers provide your information to the three main credit bureaus — Experian, Equifax, and TransUnion. This ongoing evaluation process looks at your payment history, outstanding debt, length of time you've had credit, new credit, and the types of credit you currently have and compares this information to other consumers with similar histories and profiles. This information then gets fed into each of the credit bureaus own scoring methods and out pops a number. Some lenders may also have their own methods of scoring your information.\n**Can You Check Your Credit Score?**\n------------------------------------\nFederal law mandates the consumer's right to a free credit report annually from each of the credit reporting agencies, but not to a free credit score. You can get your score along with your free report for a small fee. There are also numerous advertisements from companies that will provide you a free credit score, if you sign up for their credit monitoring program. Usually, you are afforded a free trial period so if you cancel before then, you just got your score for free. We have a list of ways to get a free score along with your credit reports on our site.\n**How Does Your Credit Score Affect Your Life?**\n------------------------------------------------\nIf you are not careful about your credit, having a low credit score will cost you a lot of money. As your credit score decreases, you become a higher risk to lenders and they will in turn charge you a higher interest rate on your loan or credit card. Let's say you have poor credit (500 to 589) and you want to get a car loan. Your interest rate could be in the neighborhood of 18 percent. But, if you had good credit (660 to 689) your interest rate might be cut in half. Over the period of a 5 year loan, that is a lot of money you would be spending if you had poor credit.\nIn addition to banks and lenders, there are landlords, merchants, employers, and insurance companies jumping on the credit score bandwagon. Of all of these, the fact that insurance rates are being determined by credit scores is causing consumers the most alarm. This is called your insurance score and some states are passing laws to restrict this practice but it is an all too real example of how a credit score can infiltrate your life.\n**What Has Our Government Done to Protect Us?**\n-----------------------------------------------\n*   The Fair Credit Reporting Act has been amended frequently, and its regulatory requirements toughened.\n*   The Equal Credit Opportunity Act and its regulations provide a framework for scoring.\n*   Congress has provided a great deal of new regulation, including the opportunity for any individual to examine their credit report for free once a year. In fact, a free credit report is available for anyone denied credit.\n*   You have the right to know why you were denied credit, and you have the right to appeal if any inaccurate information was used in the decision.\n*   All consumers MUST be allowed to appeal the use of inaccurate information, and may file suit if they consider the evaluation process to have been illegally discriminatory or statistically invalid, and such information must be divulged in the discovery phase of any lawsuit.\n**How Can We Protect Ourselves?**\n---------------------------------\nAll consumers can, and should, request a credit report from each of the major agencies annually, and update or correct all inaccuracies, errors, and other problems.\nAmerica has the most efficient, easily used measures against incorrect reporting. It also has carefully enforced laws against improper use of the credit bureau report. All adverse actions by a creditor must be explained, and full disclosure of reasons for the decision given, and appeals must be allowed and considered in good faith. END
 TITLE: What is a Credit Score CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Credit Score Truths - Get the Facts Regarding Your Credit Score CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nYour credit score is not only a reflection of your financial health today, but also a powerful influencer of your financial future tomorrow. Yet, for something that carries that much weight, the credit score is grossly misunderstood. Here’s to clearing things up.\n**1\\. You Have More Than One Credit Score**\n-------------------------------------------\nThough it is most often referenced in the singular form, you actually have multiple credit scores.\nYour FICO score is the most well-known, of which there are dozens of versions that vary dependent on the purpose for pulling the score. For instance, FICO has separate auto scores, mortgage scores, bankcard scores, and the like.\nIn addition to FICO, each of the three major credit bureaus — Experian, TransUnion, and Equifax — use the VantageScore model. Each of your scores varies across all three bureaus, as creditors may report your credit history to one bureau, but not another.\n**2\\. Your Credit Score Affects More Than Your Ability to Qualify for Credit**\n------------------------------------------------------------------------------\nIf you have no interest in financing anything — be it a car, a home, or purchases on a credit card — what difference do your credit scores really make?\nWell, in some cases, a lot.\nIt’s not just lenders who care about your credit scores. They’re also used to determine insurance rates. Some employers use them in making hiring decisions. And, increasingly, both men and women are factoring credit scores into the dating process.\n**3\\. The Way to Access Your Credit Scores Depends on the Source**\n------------------------------------------------------------------\nIf you want your FICO score, you’ll have to pay for it at myFICO.com.\nIf you want your VantageScore from each of the three main credit bureaus, they want your money, too. However, there are other places you can access these score for free.\nWithout spending a dime, you can monitor your:\n*   Experian VantageScore by going to Credit.com and\/or CreditSesame.com\n*   Equifax VantageScore go to Quizzle.com\n*   TransUnion VantageScore go to CreditKarma.com\n**4\\. Your Credit Scores are Determined Only by Your Credit History**\n---------------------------------------------------------------------\nContrary to popular belief, gender, employment, and income do NOT affect your credit score. It is calculated solely on your history relative to credit, including:\n*   Payment History\n*   Credit Utilization Ratio\n*   Length of Credit History\n*   New Credit\n*   Types of Credit\nThat said, an alternative scoring model is growing increasingly popular — credit scores based on social data. Though FICO and the VantageScore do not factor social media behavior into credit scores, a number lenders are relying on alternative scores that take into account your connections and activities (among other things) on social networking platforms.\n**5\\. You Can Always Improve a Bad Credit Score**\n-------------------------------------------------\nNo matter how much damage has been done to your credit, there is always something you can do to pave the way toward improvement:\n*   Use the debt validation process for old “zombie” debt.\n*   Once debt validation has been exhausted, settle remaining debts with collectors.\n*   In the debt settlement process, negotiate removal of the negative listing.\n*   Pay down debt so as to improve your credit utilization ratio, the goal being to use no more than 30 percent of your credit at any one time.\n*   Take on new credit, be it a new credit card (secured, if necessary) and\/or an installment loan.\n*   Use your credit cards regularly, but only as much as you can afford to pay off every month, so as to maintain a zero balance.\n*   Pay all of your bills on time.\n*   Request and review your free credit reports once a year through AnnualCreditReport.com.\nNote, this is no magic, quick-fix formula, but rather a long-term commitment to lifelong good credit behavior. That’s how you boost your credit score, gradually inching up the scale over many months, turning into years, time. END
 TITLE: Credit Score Truths - Get the Facts Regarding Your Credit Score CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
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 TITLE: Choose a Credit Card to Match Your Spending Habits CONTENT: Pick the Right Credit Card for You\n----------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 17, 2017_\nTo most people, credit cards are a pretty homogenous product; you use it for your day to day spending and pay your bill at the end of the month. Some people pay them off in full and some people just pay off what they can, but essentially a credit card is a credit card.\nThe truth is that not all credit cards are equal and the best credit card for one person is not necessarily a good fit for someone else. Choosing the best credit card can make the difference between wasting money unnecessarily and earning extra money just for buying the things you would be buying anyway.\nWhat Type of Credit Card User Are You?\n--------------------------------------\nThe first thing to figure out is what type of credit card user you are. Everyone uses credit cards differently but for simplicity there are a few different types of user listed below. Decide which category best describes your usage and select a credit card strategy accordingly.\nLong Standing Balances\n----------------------\nThis group of people will use their credit cards either occasionally or frequently but will rarely pay off large portions of their bill. This is typically the case for people who are having or have recently had financial difficulties and may be working to pay off their debts.\n**The Right Card For You.**  If you fit into this category consider getting a zero interest balance transfer credit card and using it to consolidate your balances. By doing this you will cut the amount of interest you are paying each month which will make it easier to pay off those balances. Ideally you should stop spending on your credit card until your balance is paid off, but if you want to continue using a card you should get a separate card for your daily spending. \nInconsistent Payoffs\n--------------------\nThis group of people will sometimes pay off their balance in full or at least a large portion of it. They won't pay back the full balance every month and they may have a standing balance for several months at a time depending on what costs they have to pay at the time. This behavior is typical of people who use their credit cards to pay for large bills such as vehicle repairs or major purchases.\n**The Right Card For You.** If this is you then you should be aware that after 30 days most cards will start to charge you interest. To save money you should consider paying off your bill each month, but if that is unlikely then applying for a low rate credit card is the best strategy. Some cards have longer interest free periods and some cards have lower interest rates; which option you should choose depends on exactly how often you expect to pay off your balance in full. \nAlways Paying in Full\n---------------------\nThis group use their credit cards for convenience or as a way to improve their credit score. People in this group will pay off their full balance in full each and every month and will rarely (if ever) go past their interest free period.\n**The Right Card For You.**  If you are in this group then the rate on your credit card is irrelevant because you will never pay any interest. People in this group should take advantage of cash back credit cards; cards which reward you for your spending. You probably have a good credit rating already and as a result you will have lots of offers available to you. Look for a card which rewards you for spending money on the things you buy most often. \n### Summary\nAs you can see, there is a lot to consider when looking for a credit card. Most people just use a regular credit card and give it little thought, but if you are using the wrong type of credit card then you are at best leaving money on the table and at worst you are spending money unnecessarily. END
 TITLE: Tips For Finding the Best Low Interest Credit Card CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 25, 2017_\nAre you paying more than 20 percent interest on your current credit card? If your current credit card has a high interest rate, you might want to consider looking for a new one with a lower interest rate. If you have a good credit score, it's likely that you receive offers for low interest rate credit cards all the time. There is no reason to keep paying a high interest rate when you can get a better deal simply by making a telephone call or filling out a online application form. But, before you rush out and apply for that credit card, we have some tips for you so you will get the best low interest credit card deal.\nReview Your Financial Situation\n-------------------------------\nOf course, it's important to make sure you understand the implications of your actions before you open a new credit card account. Promise yourself that you will destroy the old credit card as soon as the new one arrives. Keeping both cards increases the likelihood that you'll start buying items that you can't afford. The last thing you want to do is find yourself slipping further into debt when your original intention was to find a way to save money on credit card interest.\nRead the Fine Print\n-------------------\nBefore you switch from your current credit card to a new account with a lower interest rate, make sure you understand the details of the cardholder agreement. Some companies offer very low introductory interest rates to woo new customers, only to increase them after just a few months. Make sure you aren't going to find yourself with a higher interest rate than you already have a short period of time after opening your new account.\nIt's also important to make sure you understand any other charges that might apply to the account. For example, see how the new credit card you are considering stacks up against your existing account in terms of late fees, over the limit charges, and rewards programs. Doing this will help you fully understand whether or not the new account will result in an actual cash savings for you in the long run.\nAs a general rule of thumb, it's important to remind yourself that any credit card offer that seems to good to be true at first glance probably is one that you should avoid. It's likely that if you delve into the fine print, you'll find some terms and conditions that could make your head spin.\nShop Around for the Best Credit Card\n------------------------------------\nYou don't have to accept the first low interest credit card offer that crosses your path. Don't lose sight of the fact that you are the customer. You have every right to shop around for the best possible deal. It's well within your rights to request information about several different card programs so that you can make a fair comparison of the relative merits of each one.\nYou can even call your current credit card company and ask for an interest rate reduction. If the lender wants to keep your business and knows you are shopping around, you might be surprised to find that you don't even have to open a new account to get a better deal.\nApply For a Card that Suits Your Spending Needs\n-----------------------------------------------\nThere are a lot of credit cards that offer low interest rates along with other perks like reward points or cash back. While rewards and cash back all sounds good at first, make sure to read all the fine print regarding restrictions or limitations of these perks. For instance, that credit card with airline reward points — can you only fly at off times and are seats limited? Are you flexible in your travel where you can use this because if not, these rewards will not do you any good. Same for cash back - do you have to buy certain items to get the cash back or is for any purchases. Make sure the rewards will benefit your lifestyle or there is really no reason to get this type of card.\nLow interest cards are also good for someone who frequently carries a balance on their account. If you do keep a balance, and you may more than the minimum due each month, a low interest rate will definitely save you loads of money in interest payments. Make sure this low rate applies if you do a balance transfer. That way you get rid of those other high rate cards and start saving some money. END
 TITLE: Getting and Using a Department Store Credit Card CONTENT: Pros and Cons of Department Store Credit Cards\n----------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 25, 2017_\nA department store credit card is easy to come by and tough to turn down. You can save money on the spot, gain access to exclusive offers and other members-only perks, and have a fallback cushion for those times when you need a gift or a last-minute outfit and are otherwise broke. Having a department store credit card sounds great but are they really?\nThe answer is maybe yes, maybe no. There are pros and cons to having and using a department store credit card. If you are the type of person that will be tempted to \"shop till you drop\" simply because you proudly hold a Macy's card, it's probably not a wise move. On the other hand, if you pay off the balance in full at the end of each month and have not overextended yourself with numerous card applications already this year, a department store credit card could be a good card for you.\n### Pros of a Department Store Credit Card\n*   **Easy Qualification.** Department store cards are relatively easy to get for individuals with poor or minimal credit. This is beneficial for consumers who need to establish credit, rebuild their credit, or improve their credit history.\n*   **Saves Money on Initial Purchase.** Not only will you save money, many stores offer 60 or 90-day grace periods after the first purchase. You might be able to soak up that 15 percent discount for a few months after you sign on.\n*   **Store Specific Rewards Programs.** In some cases, you which may be able to exchange reward points for gift cards or a direct store credit.\n*   **You'll be Privy to Members Only Specials.** Being one of their card holders, you'll be notified of special sales dates, special promotions or other additional discounts on particular items before the general public is aware.\n### Cons of a Department Store Credit Card\n*   **Temptation to Spend Too Much.**  We already mentioned the psychological issue that a department store card such as Macy's might tempt you to make unnecessary (or unaffordable) impulse buys.\n*   **High Interest Rates.**  These cards rarely have reasonable interest rates and are frequently over 20 percent. All your \"perks\" will dissolve quickly if you aren't planning to pay them off in full each month.\n*   **Could Hurt Your Credit Score.**  Another con is that the FICO scoring model can actually ding you for having these cards. If you are just starting out trying to build your credit though we still recommend these cards. Some credit lines on your report are better than none.\nSo the next time a store clerk tempts you with instant savings via a department store credit card, take a timeout and think through the pros and cons before making your decision. Or better yet, ask for the application and read it through before signing on - you'll be glad you did. END
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 TITLE: Different Credit Scores Are Used by Lenders CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nConsidering how overwhelming all the information can be on your credit reports — not to mention subject to interpretation — there’s something nice and neat about a credit score. Even if it’s not good, at least it’s straightforward. That is until you consider there are numerous credit scores, and you never know if you and a potential lender are looking at the same one.\n**Why Do Lenders See Different Credit Scores?**\n-----------------------------------------------\nUp until recently, the FICO credit score you were able to purchase through the three major credit bureaus only included your \"base\" score. However, many lenders use industry-specific FICO credit scores — based on a special algorithm specific to their industry.\nFor instance, auto lenders rely on an algorithm that weights previous auto loan history more heavily than credit card companies, for example, which care more about past credit card account history.\nThankfully, as of 2015, the purchase of your base credit scores through Experian, TransUnion, and Equifax will now give you access to 18 of your industry-specific credit scores as well. These 18 scores are the ones used to make the vast majority of lending decisions.\nOf course, with so many credit scores, you have no way of knowing which one a lender is going to access to determine your creditworthiness.\nPlus, lenders are not required to update their credit scoring software, in which case the scores they’re relying on are based on an outdated algorithm.\n**How Many Credit Scores Are There?**\n-------------------------------------\nThere are more than 50 FICO credit scores, which are used to make 90 percent of lending decisions. However, there are other credit reporting companies in the game, such as VantageScore, created in a joint effort among the three major credit bureaus as means of competing with FICO.\n**Which Credit Scores Do I Need to Track?**\n-------------------------------------------\nSince the FICO score is used to make 90 percent of lending decisions that is by far the most important one for you to know.\nIf you want to be as comprehensive as possible, you can purchase your FICO credit scores from all three major credit bureaus. You will not only have access to your base score, but also the 18 industry-specific credit scores now available to consumers, including those most commonly used in mortgage, auto, and bankcard lending.\nTracking your scores from all three bureaus is a good idea if you are planning to apply for an important line of credit in the coming months.\nHowever, if you’re in the process of repairing your credit, or just interested in keeping an eye on it, tracking just one credit score should be a fine barometer.\nNote, that’s not to say you should limit the tracking of your credit _reports_. You are entitled to a free report from each of the major credit bureaus every 12 months from AnnualCreditReport.com. No matter what your intentions with your credit, by all means take a look at these reports every year, as this is the number one way consumers discover they are victims of identity theft.\n**Where to Access Your Credit Scores**\n--------------------------------------\nYou can purchase your credit scores for Experian, TransUnion, and Equifax through myFICO.com.\nHowever, you can also track your credit scores (and reports) for free through monthly credit monitoring sites like Credit Karma, Credit Sesame, and Quizzle. Just keep in mind you will be required to provide these sites with the information necessary to access your credit reports and scores. Plus, the scores you see will only be your base FICO scores (i.e., minus any industry-specific credit scores). But if you’re on a budget and just need to keep a general eye on the upward or downward movement of your credit in general, it’s a good way to go. END
 TITLE: Why Credit Scores Fluctuate - Different Scores, Scoring Models CONTENT: Why Do Credit Scores Fluctuate From Bureau to Bureau?\n-----------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nCredit score fluctuation is a topic we see lot of questions about in our discussion forum. Readers are always asking why do they get a different score from TransUnion, Equifax, Experian, and FICO? And, why do they check their scores one month, and then the next month their scores are completely different? Answering these issues requires two entirely different responses — so we will address each question separately.\nDifferent Credit Scores - Why There's More Than One and Which One Really Counts?\n--------------------------------------------------------------------------------\nThe reason you will see different credit scores from say, Experian, TransUnion, and FICO, is because they each use a different scoring system. The score from TransUnion is based on their own proprietary scoring model (VantageScore) whereas, your FICO score is based on the actual scoring program developed by Fair Isaac. Each program has it's own scoring range and their own way of determining what goes into your credit score.\nWhen Fair Isaac first released their credit scoring system (FICO Score) back in 1989, the big three (Experian, Equifax, and TransUnion) credit bureaus were all buying the \"rights\" to use that program to determine credit scores. Then in 2006, the credit bureaus decided to launch their own credit scoring model and VantageScore was born. So, when you request a credit score from say, Equifax, you are getting a VantageScore. Whereas, when you request a credit score from say, myFICO.com, you are getting a FICO score.\nThe majority of lenders use your FICO score to determine credit worthiness but lenders will pull all scores from the big credit bureaus to use along with your FICO score. Besides just looking at your score, lenders are also reviewing your credit report to see what type of credit risk you are and if they will lend you money or not.\nWhy Do Scores Fluctuate from Month to Month and Bureau to Bureau?\n-----------------------------------------------------------------\nWhile there will almost always be some minor differences in your scores across the three credit bureaus because of slightly different models used, significant score differences can result from the following:\n*   All of your credit information may not be reported to all three credit bureaus. The information on your credit report is supplied by lenders, collection agencies and court records. Don't assume that each credit bureau has the same information pertaining to your credit history.\n*   You may have applied for credit under different names (for example, Donald M. Smith versus Don Smith) or a maiden name, which may cause fragmented or incomplete files at the credit reporting agencies. While, in most cases, the credit bureaus combine all files accurately under the same person, there are many instances where incomplete files or inaccurate data (social security numbers, addresses, etc.) cause one person's information to appear on someone else's credit report.\n*   Lenders report credit information to the credit bureaus at different times, often resulting in one agency having more up-to-date information than another.\n*   The credit bureaus may record the same information in different ways.\nThe bottom line is, FICO Scores are not the only credit bureau scores. There are other scoring models used and each credit bureau will evaluate your credit differently. And, lenders report to different agencies so the information on your credit report can be different from bureau to bureau. Lastly, your credit score will change over time because you will have either made a payment on one account, charged more on another account or maybe just became late on another. All of these changes will affect your score.\nCredit Score Fluctuations During Credit Repair\n----------------------------------------------\nIf you are in the process of repairing your credit, don't get too hung up on the month to month fluctuations of your credit score. Remember, it's the long term effects we're shooting for, not the next day results. It's just like going on a diet — even if you are strictly following your diet, the body naturally fluctuates on a daily basis and from one day to another you may see a gain. But in the long run, if you are following the diet (which includes not just diet, but exercise), you will get results.\nSome quick reasons why your score may go up\/down during your credit repair efforts.\n*   You've removed an old trade line. The credit scoring models likes to see a credit history of at least 60 months on all active trade lines.\n*   You've removed an account which was showing as open with a zero balance. This may have put your over all credit card limits ratio way over 25 percent used. Let's say you have 3 cards showing, two with 50 percent of the $1,000 limit used, and one with a credit limit of $5,000 with zero used. This takes you from 14 percent of your credit limit used to 50 percent of your credit limit used. Remember, credit scoring rates you favorably if you have less than 25 percent of your total balance used. Jacking up your available credit balance to 50 percent may wipe out the benefits of removing old late payments.\n*   Any item showing as disputed may decrease your score.\n*   Removal of any installment loans such as car and mortgages from your credit report. The scoring model likes to see a balanced report, with both installment and revolving lines of credit.\nRemember, these are **_potential_** reasons, and depending on the rest of your credit report may or may not have any effect. END
 TITLE: Why Credit Scores Fluctuate - Different Scores, Scoring Models CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Low Credit Score Will Cost You Money in Higher Interest Rates CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 26, 2017_\nAccording to a recent article in the _Wall Street Journal_, millions of people have been declined for loans despite the Federal Reserve's efforts to encourage more lending and home buying. Consumers lucky enough to have a high credit score made up 90 percent of all new mortgages in 2013. That comes as a slap in the face to the ever growing number of Americans with poor credit and this number is increasing every month.\nThe percentage of all U.S. consumers that have a FICO score in the range of 550 to 699 is the highest since 2006. To put that in perspective, a borrower with a FICO score below 700 will have to pay a higher interest rate and will have a harder time getting approved for a loan. What does that means in the long run? The lower your credit score, the higher the interest rate you will get on a loan, and the more money you will be paying in interest over the life of the loan.\nInterest Paid on Car Loans\n--------------------------\nInterest rates on car loans vary significantly based on the borrower's credit score. Currently, borrowers with a FICO score of 740 or higher will pay 3.2 percent in interest, whereas borrowers with a FICO score of 680 to 739 will pay an average of 4.5 percent. Borrowers with scores lower than 680 can see interest rates from 6.5 to 12.9 percent. The difference can really add up:\n*   On a $10,000 five-year loan at 3.2%, your monthly payment will be $181 and $860 in interest paid over the life of the loan.\n*   On a $10,000 five-year loan at 12.9%, your monthly payment will be $227 and $3,620 in interest paid over the life of the loan.\nAs the above example shows, a person with the lower credit score is going to pay over $2,700 more for the exact same car. Unfortunately, roughly 44 percent of all car loans during the first quarter of 2013 were given to subprime consumers, meaning those with scores lower than 680. According to Experian, this was up nearly 6 percent from last 2012.\nInterest Rates on Credit Cards\n------------------------------\nYou would think after the economic collapse in 2008, getting a credit card would be difficult. Quite the contrary. In fact, qualifying for a credit card has become easier for consumers who have less than perfect credit. But, getting these cards will come at a cost. Rates for borrowers with a lower credit score will be as much as seven percent higher than borrowers with excellent credit.\nAccording to the latest study by CardHub.com, consumers with a FICO score of 720 were charged an average interest rate of around 12.9 percent, borrowers with a FICO score of 660 to 719 paid 17.1 percent, and borrowers who's scores were below 659 paid 20.3 percent on average. What does that mean in terms of more money spent?\n*   Card holder with a balance of $5,000 and paying $150 per month with an interest rate of 12.9% will pay about $1,235 in interest.\n*   Card holder with a balance of $5,000 and paying $150 per month with an interest rate of 20.3% will pay about $2,421 in interest.\nHaving a lower credit score and paying a higher interest rate on a credit card will cost over $1,200 more in interest.  That is money that could be spent on food, vacation, or education.\nMortgages\n---------\nOut of all the types of consumer loans, mortgages remain the hardest to get, especially if you have poor credit. If you have a FICO score of 620 or less, you are unlikely to qualify for any type of mortgage loan. According to Informa Research Services, a borrower with a FICO score of at least 760 will be approved for a loan with an average interest rate of 3.3 percent.\nAt the other end of the spectrum, a borrower with a FICO score of 620 can expect to get a rate of around 4.9 percent. On a 30-year mortgage, that equates to over $3,300 more the person with the lower score will pay in a year. In 30 years, that is almost $100,000!\nSo, what is the moral of the story? Having negative items on your credit report not only lowers your credit score, it costs you more money in interest payments. The lower the score, the higher the interest rate you are going to get on your next car loan or credit card. The percentage rates may not appear that significant at first, but when you take a look at the overall picture and figure out how much more you are paying in interest, the amount really adds up after a few years.\nBefore you apply for that next credit card or car loan, check your credit score. Take the necessary steps to get the negative information off of your credit report and you will see your credit score rise. This effort will pay off down the road when you qualify for that lower interest rate. END
 TITLE: Low Credit Score Will Cost You Money in Higher Interest Rates CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Low Credit Score Will Cost You Money in Higher Interest Rates CONTENT:    |  |  |  | \n: . END
 TITLE: Tips on Finding a Credit Card For Good Credit CONTENT: How to Find a Credit Card For Good Credit\n-----------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 26, 2017_\nWhen your credit is in good shape, you don’t have to look too far to find a credit card you qualify for. But that’s not to say you should take whatever offer turns up first. On the contrary, the better your credit, the deeper you should dig for the best deal. Because a better deal is out there and you deserve it.\n**Know Your Credit Score**\n--------------------------\nIf you don’t know it, you can purchase your FICO score through myFICO.com. Credit scores change all the time, so if it’s been a while since you’ve seen it, double-check your score before you start the card application process. (If you discover your credit is worse than you thought — and you’re in subprime territory — here’s how to find a credit card for bad credit.)\n**Know Where to Look**\n----------------------\nBankrate lets you search by card type (e.g., 0% APR cards, balance transfer cards, reward cards, etc.), credit score, and card issuer.\nNerdwallet lets you search by card type; credit score; fees; monthly spend; card network (American Express, Discover, VISA\/MasterCard); financial institution; years you’ll keep the card.\n**Choose the Right Credit Category**\n------------------------------------\nMake sure the credit card you apply for is one for which your credit score qualifies you for. That means knowing your credit score and just how good it really is. Here’s the general breakdown of credit score ranges:\n*   Excellent: 750 to 850\n*   Good: 700 to 749\n*   Fair: 650 to 699\n*   Poor: 600 to 649\n*   Bad: 300 to 599\nThat said, you’ll notice the ranges may vary from one site to the next, so do your best to choose the category that best applies to you. For instance:\nNerdwallet breaks it down by Excellent (720 to 850), Good (690 to 719), Average (630 to 689), and Poor (350 to 629), and eliminating Fair altogether. Use your credit score number to determine which of these categories you choose.\nBankrate and CardHub limit the choices to Excellent, Good, Fair, Bad, and No Credit History, eliminating Poor altogether (which shouldn’t affect you if you have good credit).\n**Compare Costs and Features**\n------------------------------\n**Fees.** Look at annual fees (which you should do your best to avoid), APR, fixed vs. variable interest rates, balance transfer fees, cash advance fees, international use fees, late fees, and over limit fees.\n**Cash back and rewards.** Do they offer cash back? If so, what percentage? Do they offer a rewards bonus? If so, how much do you have to spend to get it? What categories of spending are the rewards points tied to? Do you spend in those categories?\n**Narrow it Down to One Card**\n------------------------------\nEvery time you apply for a credit card, the issuer will pull your credit, which counts as a hard inquiry on your credit reports. Hard inquires put dents in your credit score so the last thing you want to do is plan on applying for multiple cards in hopes that one of them approves you. On the contrary, you only want to apply for one card.\nThink of it as a purchase you can’t return. Do your homework and get it right the first time.\n**What to Do if You Are Turned Down**\n-------------------------------------\nMaybe your credit isn’t as good as you thought. Maybe it’s only Average or Fair. Or maybe it’s really Bad and all you qualify for is a secured credit card. Look at all of these possibilities carefully and make sure you know where you stand before applying again. END
 TITLE: Knowing Someones Credit Score Affect Who You Date CONTENT: \"What's Your Number?\" Get a Credit Score By The Third Date\n----------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nThere is nothing wrong with wanting to know how a potential partner handles their finances. And there's nothing wrong with asking about it during the dating phase. But is it really okay to ask for a credit score on the first date? Many people are doing just that these days. There's even an online dating site — CreditScoreDating.com — that incorporates credit scores into compatibility results.\nWith 30 percent of women and 20 percent of men saying they will not marry someone who has bad credit, it's definitely best to get to the credit score sooner than later. But if you're planning to ask about their credit score, do yourself (and your date) a favor and give yourself until the third date.\n### First Date: Avoid the Ask\nLet's face it. First dates are a dime a dozen. Whether you met online, a chance encounter, at work, or through a friend, you never know what the chemistry and communication between you will really be like until you're in \"date mode.\" Why muddy the already murky waters with any extra pressure to perform?\nThe fact is, there are plenty of other reasons to weed out a first date mate besides their credit score. Fortunately, these are qualities you can assess through observation alone, and they need your full attention.\nHow's your chemistry? Your conversation? Do they make you laugh? Do you have interests in common? Would you look forward to spending time with this person again?\nOf course, these aren't questions you need answered on the date itself. They're things to reflect on after the fact when you're not face-to-face trying to like them, but back on your own considering him or her from an objective, level-headed perspective.\nIn other words, you may not know whether you even want a second date until the first one is over, making the credit score ask on the first date most-assuredly premature and, in turn, unnecessarily uncomfortable.\n### Second Date: Be Open To It\nYou've already broken the ice and found yourselves on at least one of the same pages — you like each other enough to go on a second date. Granted, this is still a discovery period, but it does imply potential interest in pursuing other dates down the line. After all, the first date went well, and hopes are high the second date will go even better.\nWhat you've reached at this point is a level of comfort that may include room for an exchange of your credit scores. But don't force it, and don't count on it. Instead, try focusing on things that should help give you a good idea of their financial life in general.\n**Do they rent or own their home?**\nIf they're renting that will tell you less about their finances than if they own. It's possible they rent because they don't have the credit to get a home loan, but they also may have stellar credit and just not be interested in owning a home right now. On the other hand, if they own their home, it's probably safe to assume their credit is good.\n**Do they drive a brand new car or an old clunker?**\nThis one should be considered within the context of other financial clues. Driving a brand new car probably means they have good credit, but it could also mean they live way above their means. You should know by now what they do for a living. Do the two add up? As for the old clunker, plenty of people with great credit drive their cars until they just won't drive anymore, which could be a sign of a saver.\n**Does it seem like they're spending money in a manner meant to impress you?**\nThere's nothing wrong with a date spending money on you. In fact, the nicer the places you go, the more likely their credit is good. But as with the brand new car, it's always possible they're spending (i.e., charging) beyond their means. You probably have no real way of knowing this yet, but when a date goes out of their way to show off how much they can spend, it could be a sign of spending habits that would mean trouble down the line. Again, it may be helpful to consider this within the context of what they do for a living.\n### Third Date: Bite the Bullet\nIf a bad credit score is a deal-breaker in your book, get it out of the way on the third date. By now you know mutual interest is high. To move to a fourth date is to move into pre-relationship territory. So before you let it get that far, cut to the chase.\nThere is no one right way to ask your date their credit score, but here's one way to do it, which you can edit according to whatever feels appropriate and comfortable.\nSomewhere in the middle of your third date, say something like, \"I've been having so much fun with you and am really excited about getting to know you better. One thing that's really important to me is financial compatibility, so I was wondering if we could talk about that for a little bit.\" Then leave room for your date to talk, as they will hopefully share a similar interest. The conversation will likely unfold pretty naturally. If they don't bring up their credit score first, share yours and they likely will too. If not, ask.\nNote, if at any point in the conversation about finances your date becomes defensive or aggressive, and unwilling to talk about it, let it go. Whether they have shady finances they'd rather not share, or they simply aren't comfortable discussing finances at this point, you're both best-served continuing your search for someone with more similar sensibilities. END
 TITLE: Prepaid and Debit Cards Can Rebuild Your Credit CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 27, 2017_\nHave you recently been rejected after filling out a credit card application because of poor credit? You are not alone. The problem is, a major credit card is often needed to make a hotel or airline reservation or placing an order online. For those with bad credit, not having a credit card to use for these types of transactions can make life difficult, if not down right depressing.\nWhat is a Prepaid Credit Card?\n------------------------------\nA prepaid credit card is a card issued by a financial institution that is preloaded with funds and is used much like a normal credit card.  A prepaid card work in the opposite way of a normal credit card, because instead of buying something with borrowed funds (through credit), you buy things with funds that have been already been paid.  With a prepaid card, the credit limit is determined by the amount of money you deposited into an open checking or savings account. Once you fund the account with a designated amount, you are issued a prepaid credit card that can be used anywhere one would use a regular credit card.\nThe best part about a prepaid credit card is that one can not spend more than the amount of the deposit and there are no interest charges or late fees since the money is already there to use if you do not pay your monthly bill on time.\nWhat is a Debit Card?\n---------------------\nA debit card is not like a prepaid credit card. A debit card immediately deducts funds from your account associated with the card.\nWhy Are These Called Credit Cards?\n----------------------------------\nThe reason why the word \"credit\" is associated with these prepaid cards is because most cards carry a credit card brand (such as Visa or MasterCard) and can be used in similar ways. It's really no more than a stored value card that can be used in multiple locations due to the Visa (or other credit card) insignia. As more consumers require a suitable solution to rebuilding credit, recent changes have allowed some credit card companies to offer pre-paid credit cards to help rebuild credit. However, they are harder to find, and many have higher fees associated with them; so make sure you do your research. Many pre-paid products falsely claim they will improve your credit rating.\nBenefits of a Prepaid Credit Card\n---------------------------------\n*   There is no such thing as over-drafting your account; you cannot exceed your limit.\n*   Prepaid credit cards can be a big advantage to low-income consumers who might otherwise be stuck dealing in cash, unable to make such basic transactions as paying for gas at the pump, paying bills online, or making car rental or hotel reservations.\n*   Contingent on the card you select, your money may be protected if your card is ever lost or stolen.\n*   A pre-loaded credit card is a convenient way to pay for goods when traveling, even outside the U.S.\n*   Prepaid credit are often marketed to teenagers for shopping online without having their parents complete the transaction, or as a convenience for parents wishing to provide funds to children away from home.\n*   Obtaining a prepaid credit card is easy, fast, and requires no credit check.\n*   Some prepaid credit cards today report card history to major credit bureaus, so cardholders may be able to build or rebuild their credit using a prepaid credit card without the risk of damaging it along the way.\nPrepaid credit cards are a good solution for anyone who does not want to be tied down to a banking institution, anyone wanting a more secure way to carry their money than simply cash, or anyone having troubles being approved for a credit card. In today's society that is more and more cashless, somebody who doesn't have access to cashless transaction vehicles is at a major disadvantage.\nDisadvantages to Prepaid Credit Cards\n-------------------------------------\nThere are a number downsides to the prepaid card. Most cards require a start-up fee, and while for many companies this fee is minimal, some of them are substantial. In addition, you'll most likely have to pay additional fees each time you deposit more cash into your prepaid credit card account; perhaps not as much as the initial fee, but a fee, no less. Some cards will allow you to add more funds for free, but may charge a monthly \"maintenance\" fee instead. Another downside is that many businesses that accept automatic payments from bank or credit card accounts may not accept them from prepaid cards. For most consumers this is a minimal annoyance, but for some it can be a significant setback.\nAs with any credit product, when selecting a prepaid card you should always do your research and make an informed decision on the best card to meet your individual needs. As stated previously, there may be a number of different fees associated with using a prepaid credit card, some of which might be high enough to offset any benefits. A prepaid credit card will generally carry more fees than a secured or unsecured credit card (presuming you pay them off monthly) therefore a prepaid card may only be a good option for those who cannot obtain any other form of credit, but require the convenience of a credit card.\nWhat to Look For When Choosing a Prepaid Credit Card\n----------------------------------------------------\nThere are a lot of products out there and the only way to get the best card for you, is to ask some questions and read all the fine print before choosing a prepaid card. Below are some recommended things to looks for and ask about when picking out a card to suit your lifestyle.\n**Sign-up or Start-up Fee:**  Self-explanatory. May range from free to $50.\n**Transaction, POS, or Usage fee:**  A fee assessed each time you use the card at a store, online, by phone, etc. Typically it is \"no charge\", but there might be a small fee, under a dollar.\n**ATM Withdrawal fee:**  Can range from free to $5 or more. May be higher for International withdrawals.\n**Monthly Maintenance Fee:**  A fee charged to your account each month. Sometimes there is no fee for the first few months, and then one kicks in after 6 months; can range from free to $10 or less.\n**Reloading or Recharging Fee:**  A fee charged to you for adding more money to the account where your money is being held. Depending on the method used to add or transfer the money (at a retail location, using another credit card, cash, etc) the fee may differ. Typically free to less than $5.\n**Balance Inquiry Fee:**  A fee to provide you information about your available balance. Can vary contingent on the method you use to request the information: online, telephone, ATM. May range from \"free\" to $3.00 or less.\n**Monthly Statement Fee:** A fee for obtaining monthly transaction history. May be up to $10 if sent by mail, however is typically free of charge if you go to the card issuer's website.\n**Cancellation\/Refund Fees:**  A potential fee for canceling your card altogether or requesting a partial refund of monies loaded onto the card.\n**Insufficient Funds\/Overdraft Fees:**  A fee charged if you attempt to make a transaction and it is refused to to inadequate funds in your account; or, it goes through anyway but you exceed your limit. Usually under 3 dollars.\n**Foreign Currency Conversion Fee:**  A fee, usually a percentage of the total amount spent, charged to convert from another currency during international transactions\/travel.\n**In Summary:**  Check out the various types of prepaid credit cards on the market. Read the terms and conditions carefully, and define your objectives for needing this product. Depending on your individual needs, you may find that a traditional credit card, a secured credit card or a debit card will work better for you and save you money in the long run. END
 TITLE: How Does Your Credit Score Compare to Other Americans CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nHow does your credit score stack up against the average American credit score or even _most_ Americans? FICO scores range from a low of 300 to a high of 850 (a perfect credit score which is achieved by only 1 percent of all consumers). The national average credit score is 700, and only 13 percent of the nation's population has a score above 800. Roughly 15 percent of the population has a credit score lower than 550. A good credit score is anything above 700 and a very good credit score is 720 or higher.\nHow Does Your Credit Score Compare?\n-----------------------------------\nWhen comparing your number to others, you need to know which credit score model is being used to calculate the score, and what credit score range is being used. To reiterate, there are many different credit score models, including versions of Vantage Score, FICO scores and even educational credit scores. Some of these have different credit score ranges, so while VantageScore 3.0 and FICO scores run from 300 – 850, there are others that may run from 501-990 or 360–840, for example. You can generally find out what score’s in use by looking at the sheet or site on which the score is being supplied.\nWhat is a Good Score?\n---------------------\nAgain, different models have different ranges, and lenders make their own decisions about what they consider acceptable. The scores typically range from 301 to 850, with categories from bad to excellent. Here’s how the credit tiers generally break down:\n*   **Excellent Credit:** 750+\n*   **Good Credit:** 700-749\n*   **Fair Credit:** 650-699\n*   **Poor Credit:** 600-649\n*   **Bad Credit:** below 600\nBased on data compiled by WalletHub, there is a correlation between age and average credit scores, with scores rising along with age. According to their data for 2016, the average credit score by age is as follows:\n*   20 & Under — average credit score is 631\n*   21 to 34 — average credit score is 634\n*   35 to 49 — average credit score is 655\n*   50 to 69 — average credit score is 700\n*   70 and older — average credit score is 730\nThe Experian National Credit Index study found that people in the 18-39 age group has the greatest number of late payments. The 40 to 59 age group held the greatest amount of debt; and the 60+ age group used the least amount of credit that was available to them.\nExperian's 2016 State of Credit report showed the following facts:\n*   The national average VantageScore was 673.\n*   Consumers had an average of 2.35 bankcards with an average balance of $5,551.\n*   Average debt per consumer was up 0.59 percent from the previous year to $39,216.\n*   Mankato, Minnesota had the highest average credit score in the nation — 708.\n*   Greenwood, Mississippi had the lowest average credit score in the nation — 622. END
 TITLE: How Does Your Credit Score Compare to Other Americans CONTENT:    |  |  |  | \n: . END
 TITLE: Choose the Best Cash Back Credit Card CONTENT: How to Pick the Best Cash Back Credit Card\n------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 26, 2017_\nIf you're tempted by a cash back credit card — the lure of getting back some of the money you've already spent — who in their right mind wouldn't want that? Unfortunately, while cash back credit cards can be rewarding, they can also be confusing. And if you're not careful, they can even be costly. Here's what you need to know to choose and use a cash back credit card wisely.\nWhat is a Cash Back Credit Card?\n--------------------------------\nTo entice consumers, credit card issuers offer some cards with cash back rewards.\nWhen you reach a pre-determined spending level, you receive a percentage of your money back. This not only entices consumers to apply for the card in the first place, but also encourages consumers — once they're cardholders — to use the card more frequently than they probably would otherwise.\nHow is a Cash Back Credit Card Different From a Regular Credit Card?\n--------------------------------------------------------------------\nAbout half of credit cards offer cash back rewards. The others (i.e., \"regular\" credit cards) offer no such incentive.\nHow Much Can You Earn With a Cash Back Credit Card?\n---------------------------------------------------\nCash back rewards vary from card to card, but generally range from .5 to 1 percent. That said, you will see card issuers offering cash back as high as 2 to 6 percent. However, this usually requires an annual fee or qualifying spending limited to certain categories. These qualifying categories tend to change often, making it difficult to reach the required spending goal.\nAre There Annual Fees For Cash Back Credit Cards?\n-------------------------------------------------\nSome cash back credit cards come with annual fees, others don't. The wisest choice to avoid annual fee cards. If you're pretty certain the rewards you can earn over the course of the year will exceed the annual fee, you may want to consider it. Just read the fine print carefully, as there may be restrictions that make it more difficult to earn cash back than you realize. Again, qualifying categories tend to change frequently — as often as every 3 months — making it difficult to reach required spending goals.\nWhat Purchases are Eligible For Cash Back Rewards?\n--------------------------------------------------\nIt depends on the card. Most seem to offer .5 to 1 percent cash back on all purchases. But spending within certain categories may garner you much larger cash back returns. Again, though, these can be spending goals hard to reach before the qualifying categories change on a quarterly basis.\nHow to Redeem Cash Back Rewards\n-------------------------------\nEase of redemption varies. Some credit card issuers require you to request your rewards; others award them to you automatically. As for how your rewards are distributed, it depends on the card. You may be able to have the rewards credited back to your balance. You may be able to shop for merchandise online. Or you may be able to get a good old fashioned check in the mail.\nIs There a Cap on How Much Cash You Can Get Back Over the Course of a Year?\n---------------------------------------------------------------------------\nThere may be. Again, read the fine print.\nCan You Lose Cash Back Rewards?\n-------------------------------\nIt varies by card, but you could lose your rewards points if you go a certain amount of time without using your card, for example, or if you miss monthly payments. Also, keep in mind that credit card issuers reserve the right to change their terms at anytime.\nWhat Are Cash Back Credit Card Best Practices?\n----------------------------------------------\nOnce you receive a cash back credit card, follow the same best practices you would for any other card. Only charge as much to the card as you can afford to pay back by the end of the month (i.e., avoid carrying a balance from month to month). This could prove tough with a cash back credit card, as you're trying to reach qualifying spending goals. But remember, any rewards you earn will likely be negated if you're paying monthly interest rates. END
 TITLE: Secured Credit Cards Rebuild Your Credit CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 27, 2017_\nFor whatever reason — the economy, youthful negligence, health problems or general ignorance — you may find yourself with a low credit score and no way of getting a small business loan, home loan, or a car loan. What you need is a way to increase your credit score in a hurry and credit cards are a great way to do just that. But people who have never had credit or need to repair a poor credit history may not qualify for an unsecured credit card. For them, a secured credit card may be the only way to establish credit.\nThere are a lot of \"bad\" secured credit cards, so you want to make sure you do your homework first before getting one of these cards. Getting the right one and using it the right way, will go miles in the journey of rebuilding your credit and increasing your credit score.\nWhat is a Secured Credit Card?\n------------------------------\nA secured credit card requires a cash collateral deposit that becomes the credit line for that account. For example, if you put $500 in the account you can charge up to $500. You may be able to add to the deposit to add more credit, or sometimes a bank will reward you for good payment and add to your credit line without requesting additional deposits.\nYou should look for the following conditions in a secured credit card:\n*   No application fee and a low annual fee.\n*   The ability to convert to a regular, unsecured credit card after 12 to 18 months of on-time payments.\n*   The card issuer should be reporting your payment history to ALL THREE credit bureaus.\nWe have put together a listing of secured credit cards you can apply for.\nRebuilding Your Credit With a Secured Credit Card\n-------------------------------------------------\nYour best bet is to make arrangements with all of your current creditors to pay off your current debt and then make your payments on time. But this alone will not build a good credit score, it'll simply undo some damage to your credit score. You need to have a credit card you can use at least once per month and pay off in full each month to make your credit score go up quickly.\nEven in the present economy, a person with a bad credit score can get a credit card. And, you don't even have to stoop down to cards with annual fees. A secured credit card issued by your bank allows you to rebuild your credit score quickly, if you use it responsibly. You only need to make a small purchase each month and then pay the card in full each month. After several months of doing so, and if you are faithful with your other debt payments, your credit score will quickly rise.\nAfter about six to nine months of responsibly using your secured credit card, you will find your credit score rising sharply. At this point you should also know how to use your secured credit card responsibly. This is an important part of rebuilding credit scores. You need to continue using your secured credit card responsibly or your credit score will soon be damaged again.\nBuilding a Credit History\n-------------------------\nFirst, get a couple of secured cards. Next, spend small amounts wisely and pay it all off every month and pay it right when you get the bill, don't wait for the due date and don't be late.\nFor people with poor credit or no credit, a secured credit card is the fastest, most effective way to re-establish themselves as good credit risks in the eyes of lenders. Secured cards are easy to get and the card issuer reports your payment history to major credit bureaus every month.\nUsing Credit Cards Responsibly\n------------------------------\nUsing credit wisely is important since your credit reputation influences the rates that will be paid on a loan for a house or car, or for a credit card. The better your credit reputation, the lower the interest you will have to pay. Although secured cards tend to have higher interest rates and annual fees, they provide a valuable steppingstone to unsecured credit.\nIf you cannot use your secured credit card responsibly, it is time to consider that loans and credit cards are not for you. Some personalities simply don't work with credit. There is no shame in being someone who must live on a cash basis, but there is shame in taking on lines of credit when you are someone who must live on a cash basis.\nEstablish a Sound Payment History\n---------------------------------\nEstablishing a payment history will help you qualify down the road for the major credit cards. Using this secured card appropriately and within the set parameters will help rebuild your credit. Only make small purchases and pay the bill in full when it arrives and well before the due date. Doing this regularly over time helps build your credit history as a prompt payer.\nDon't fall into the trap of overspending and\/or making minimum payments. Once you have built a solid credit history over 12 months or more, you can apply for an unsecured card. Or, you can talk to the card issuer about converting from your present card to a regular card. END
 TITLE: Credit Cards for Big Spenders CONTENT: Best Credit Cards For a Big Spender\n-----------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 23, 2017_\nWe seem to talk a lot about secured and prepaid credit cards for those who have bad or no credit. Those types of cards are for people that are in the process of fixing their credit so they can later obtain a credit card meant for those with excellent credit. But what about all of you out there who DO have excellent credit and want to use your credit cards to pay for just about everything from food to gas. If you are one of these people, you need to get your hands on a card that will offer you huge rewards, cash back or other perks. The more money you spend, the more rewards you can earn. So, if you are giving your credit cards a serious workout every month, why not make the most of it?  Here is a list of the best credit cards for big spenders who want big rewards.\n1\\. **Chase Sapphire Preferred** - This has been named the top travel credit card because you can earn double points on travel and dining. Another perk is the fact you won't pay a cent in foreign transaction fees when you travel abroad. You get 40,000 bonus points when you spend $4,000 within the first 90 days. Annual fee is $95 (waived the first year) and 15.99% APR.\n2\\. **Starwood Preferred Guest Credit Card** - Another great credit card for traveling in the U.S. or abroad. You can use points at over 1,100 hotels and resorts and over 150 airlines, with no blackout dates. Check their website for details on points earned on purchases as that changes, but there is a $65 year annual fee (waived the first year) and an interest rate that starts at 15.24% APR.\n3\\. **United MileagePlus Explorer Card** - This is the card for you if United Airlines is your airline of choice. You can earn double miles on United Airline tickets, no foreign transaction fees, your miles never expire, and you and a companion can check your first bags for free. You also get 30,000 bonus miles after you spend $1,000 in the first three months of signing up. No annual fee the first year, then it is $95 a year thereafter, with a 15.99% APR.\n4\\. **Barclaycard Arrival Plus Word Elite MasterCard** - This card earns you double mileage points for every $1 you spend, regardless of type of purchase. Additionally, you can earn 40,000 bonus miles when you spend $3,000 in the first 90 days. The annual fee for this card is $89, waived the first year, and the purchase rate is 14.99% APR and in introductory 12-month zero APR on balance transfers.\n5\\. **Club Carlson Premier Rewards Visa Signature** -  Offered through U.S. Bank, this is a great credit card if you like staying at high-end hotels, such as Carlson Rezidor Hotels. As with the other cards listed above, you get points for signing up and points for spending money in the first 90 days, but you also get 40,000 points when you renew your card each year. At 13.99% APR and only $75 annual fee, this is a pretty good deal in our books.\nBesides the top 5 credit cards for big spenders listed above, these also made our list:\n*   Blue Cash Preferred Card From American Express\n*   Citi Hilton Honors Reserve Card\n*   Southwest Airlines Rapid Rewards Premier Card\n*   Ameriprise World Elite MasterCard\n*   Platinum Delta Sky Miles Credit Card\nSpending money has never been so lucrative and these top credit cards are looking for consumers with excellent credit and who love to use their credit cards. As always, make sure you pick the card that is going to fit into your spending habits, that way you will maximize all that card has to offer. Keep in mind to always pay your balances in full each month so you do not eventually loose your excellent credit status. END
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 TITLE: CFPB Free Credit Score Inititaive CONTENT: CFPB's Free Credit Score Initiative\n-----------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nWhile you are legally entitled to a receive your credit reports for free once a year, the same is not true of your credit scores. Though your scores are determined by the information you can see on your reports, it is impossible to have a clear understanding of how you are being judged by lenders if you do not know the number they use to rate your creditworthiness.\nThe Consumer Financial Protection Bureau (CFPB) aims to change all this via an initiative encouraging credit card issuers to inform their cardholders of their credit scores. CFPB Director Richard Cordray sent letters requesting as much to CEO's of the nation's top credit card issuers, followed up by personal phone calls.\nIt appears, though, that some credit card companies need no such nudging. Some were way ahead of the curve, offering free credit scores months before the CFPB's call for action.\nWhy Offer Free Scores Now?\n--------------------------\nAll of this comes in response to FICO's 2013 announcement of its FICO Score Open Access Program. Lenders already purchase FICO credit scores on borrowers. The new FICO program allows said lenders to share these scores with cardholders at no additional charge.\nAre Credit Card Companies Required to Provide Cardholders With a Free Credit Score?\n-----------------------------------------------------------------------------------\nNo, you will only receive a free credit score from a credit card issuer if:\n*   you are turned down for a credit card,\n*   you receive a less favorable interest rate than you applied for, or\n*   your interest rate goes up.\nWhich Credit Card Issuers Provide Cardholders With Free Credit Scores?\n----------------------------------------------------------------------\nIn Fall 2013, Discover, Barclaycard, and First Bankcard started providing free credit scores to their cardholders.\nHow Are Free Credit Scores Provided by Credit Card Issuers?\n-----------------------------------------------------------\nFree credit scores may be included on monthly credit card statements and\/or displayed on cardholder online accounts.\nAre the Free Credit Scores Provided by Credit Card Issuers Real Credit Scores?\n------------------------------------------------------------------------------\nAs you may know, there are already plenty of offers out there for free credit scores, most of which require you to sign up for a credit monitoring service. However, these free credit scores are usually not the same scores seen and used by lenders. So the idea behind free scores provided by credit card issuers is that the numbers provided are the same ones they use to determine your creditworthiness, interest rates, etc. Even the credit scores you purchase through FICO itself aren't necessarily the same scores used by lenders.\nWhy is it Important to See a Credit Score Every Month?\n------------------------------------------------------\nIn prepared remarks at a Consumer Advisory Board meeting in February 2014, CFPB Director Richard Cordray presented a number of reasons why keeping a close eye on your credit score matters so much:\n*   \"If scores are lower than expected or if they change over time, more consumers may take the initiative to request their credit reports. This will allow them to address concerns, dispute errors or fraud-related entries, and improve negative aspects of their credit usage.\"\n*   Plus, \"Customers who monitor and manage their credit standing should, on average, be less likely to become delinquent or to default.\"\nIs Offering Free Credit Scores Via Credit Card Issuers Really the Best Way to Go?\n---------------------------------------------------------------------------------\nTwo-thirds of Americans have at least one credit card, so it does seem a pretty effective means of raising credit score awareness. However, Cordray hinted at the February 2014 Consumer Advisory Board meeting that the initiative probably won't stop there; \"I see no reason why this approach should not be replicated with customers across other product lines as well.\" END
 TITLE: Monitor Your Credit Score - Is It Worth the Monthly Fee CONTENT: Is It Necessary to Monitor Your Credit Score?\n---------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nYour credit score is something every smart consumer should know, but it is really necessary to monitor it every month? With identity fraud becoming so widespread and prevalent in today's society, it would seem a good argument for one to sign up for one of those credit monitoring services. Recently, the Justice Department estimated identity theft is a $5.5 billion problem worldwide. Stats like that would make it tempting but are these services really worth it?\nHow Do Credit Monitoring Services Work?\n---------------------------------------\nYou have probably seen the pop-up ads as you surf the Internet trying to entice you to sign up for their credit monitoring service. These services are offered by credit reporting bureaus, banks, and other third-party companies, promising to ease your mind with 24\/7 access to your credit report and score.\nSo, you click on the ad and it has you fill out a form to start your \"free trial\" and immediate access to your score. Of course, free is only free for a short time and then you have to start paying them a monthly fee of anywhere between $19 to $40 a month.\nUsually you are only going to see one score from one scoring model but you may or may not receive credit reports from all three credit bureaus such as Equifax, Experian, and TransUnion. Read the fine print before you sign up to make sure you understand exactly what you are getting for your money.\nAlong with access to your credit report and score, you will also receive alert notifications when changes to your account occur. These changes could be someone making a credit inquiry, a credit card balance change, a credit score change, and possibly a new credit account opening without your knowledge — hence, the reason for credit monitoring. Bottom line, the whole point of the monitoring is to make sure someone has not stolen your identity and opened up a charge card or two and is on a shopping spree at your expense.\nAdvantages of Using a Credit Monitoring Service\n-----------------------------------------------\nIf you are thinking of signing up for a credit monitoring service, here are some of the pros to doing so:\n*   It can help you become aware of where you are with your finances.\n*   You will be notified as to small changes in your credit file which could be a sign of ID theft.\n*   Changes in your credit score may be a sign of ID theft or maybe you forgot to pay a bill.\n*   With all of the possible data breaches possible on the Internet, you will be notified immediately if any of your accounts have been hacked.\nDisadvantages of Using a Credit Monitoring Service\n--------------------------------------------------\nNot everyone is sold on the usefulness of credit monitoring services. Here are some of the cons to signing up for one of these programs:\n*   Consumers can monitor their own accounts without paying for this service. Checking your accounts on-line and ordering a yearly copy of your credit report are completely free and something everyone can do on their own.\n*   These services can not tell when a child is a victim of fraud, or if the fraud has targeted someone who is deceased.\n*   There is no way to tell if someone received medical treatment in your name or is using your medical insurance unless you receive a collection notice.\n*   You will not know if you are a victim of tax fraud until you file a return and find out you are not getting the refund you thought you were getting.\n*   The credit score you get for free with the service, might not be the one a potential lender is going to use. There are over 50 different credit scoring models so ask your lender which credit scoring model they will be using to approve your loan.\nThe bottom line is, before you sign up for that free credit score make sure you read all the fine print. You might get a free score from either Equifax, TransUnion, or Experian, but is that going to be the score you need to know to get a loan? With so many different scoring models out there, chances are the answer to that question is a big fat \"no.\" So if you are just signing up for the service to get your score, this is not the best reason.\nIf you are worried about identity theft and you want a service that will send you notifications if there are any changes in your credit profile, then this is what you need. But, be warned, what you are paying someone upward of $40 a month to do, you can do yourself. Although it might take a little work on your part, you can monitor your credit card accounts and bank accounts very easily on your own. And, you are entitled to a free yearly credit report. So, do it yourself and save the money for a nice dinner out with your special someone instead. END
 TITLE: Monitor Your Credit Score - Is It Worth the Monthly Fee CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
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 TITLE: Using Credit Card Rewards Points CONTENT: How to Maximize Your Credit Card Rewards and Frequent Flyer Points\n------------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 24, 2017_\nYou've spent the money by using your one or two reward credit cards to pile up reward points. Now comes the fun part - cashing them in. Just as the number of available reward cards has mushroomed over the years, so has the selection of stuff you can cash in on.\nIn a recent survey conducted by American Express, over half of the people they polled stated they participated in some type of rewards program. That means there are increasing numbers of people trying to figure out how to maximize their reward benefits and points.\nTips to Maximize Your Reward Points\n-----------------------------------\n1.  **Look at the rewards linked to your airline, hotel, or retailer credit card.**  You can find good deals on plane tickets - especially expensive ones - buy using an airline rewards card. Sometimes these deals are better than cashing your points in on a cheaper flight.\n2.  **Compare awards on multiple cards.**  According to a study by Colloquy, the average American has 1.9 reward credit cards. So, examine the points needed from each one on say, a rental car, and use the card that has the better deal. You need to do the math between your reward cards.\n3.  **Find smaller awards.**  There has been a big shift in recent years toward making awards available on the cheaper end - that is - using less points. Also, some reward programs will allow you to pay for an item with a mix of points and cash.\n4.  **Consider gift cards.**  About 55 percent of all reward redemptions were in the form of gift cards. Gift cards are flexible and can offer a better value.\n5.  **Look up the current price of the item you are eyeing.**  Credit card companies generally pay less than retail for merchandise so check online to see what that item is currently costing at a few retail stores. No point in using up your points on an overpriced item.\n6.  **Check out the specials.**  Just as you would at a store, look for sales in your rewards program. A lot of rewards programs offer a changing list of specials - typically items that aren't moving and they want to get rid of them.\n7.  **Combine your points with someone else's.**  An increasing number of rewards programs allow you to transfer your points to others, which means two people could share a gift that neither could reach individually.\n8.  **Look for cash-back options.**  Redeeming points for cash back might not be flashy, but it could make sense if you need this case to pay your bills.\nHow to Keep Track of Your Points\n--------------------------------\nThere are a number of websites available to help consumers track and get the most out of their hard-earned credit card points, rewards, and airline frequent flyer miles. Although some services charge an annual fee, they may offer worthwhile perks such as email alerts regarding when miles will expire and award listings. Here are a few websites to check out.\n*   **MileTracker.com -**  This site offers a free downloadable application sponsored by USA Today. MileTracker currently supports more than 100 frequent flier and loyalty programs. Once you create a profile and insert your multiple account information, you will not need to input it again. When you open MileTracker and tell it to display or update your accounts, it automatically and simultaneously goes to all the accounts your have listed in your profile, inserts your personal information required for each account, and retrieves the account data to be viewed on your computer desktop.\n*   **Points.com -** This website allows you to track reward miles and points for free. It also allows you to trade with other users on the sites Global Points Exchange, GPX, but there is a fee involved. There is a processing fee per trade, plus whatever additional trading fees that may be required by the airline or rewards program.\n*   **PlasticJungle.com -** Here is a site for gift card exchange and services, for consumers who want to either buy gift cards at substantial savings, sell them for cash, or trade pre-owned gift cards for others. Given that many credit card reward programs offer gift cards as one of their available redemption choices, this site may be handy if you end up with a gift card you'll never use. Plastic Jungle guarantees all transactions and offers industry-leading features like gift card replacement protection in case they are lost or damaged, and instant alerts via text or email. Users may list gift cards for free on Plastic Jungle, with successful transactions charged a 10 percent fee when their gift card is sold or traded. END
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 TITLE: Credit Card Rewards and Rebate Offers CONTENT: Rebate and Reward Credit Cards - Deal or Rip-Off?\n-------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 24, 2017_\nAccording to a survey by the Federal Reserve Bank of Boston, about 60 percent of all credit card holders have a reward card. Consumers also said rewards were the second-most important reason for choosing a specific card, behind no annual fees and ahead of a lower interest rate. Even more surprising (or really maybe not that surprising) is that one-third of consumers choose which card to use in order to maximize card rewards.\nThe bottom line is to apply and use the card with the rewards program that best fits your preexisting spending habits. If you already travel a lot on Delta Airlines, it would make more sense to get the card that gives you rewards for miles flown on Delta, not on Southwest. Make sense? Also, you don't want to carry a balance on a rewards card that carries an interest rate of 24.99 percent. Instead, use a card with an interest rate of 9.99 percent, if you plan on carrying a balance on your credit card. But before we get into all the nuances of rebate and reward cards, let's see how this all started.\nHistory of Reward, Rebate, and Cash Back Cards\n----------------------------------------------\nAccording to Curtis Arnold, founder of CardRatings.com, Discover introduced the first no-fee cash-back credit card during a commercial on Super Bowl Sunday in 1986. Over potato chips and beer, consumers were stunned to learn that for no annual fee, they could get a cash rebate of up to 1 percent on every purchase, an unheard of deal at the time.\nSoon after was the birth of airline rewards cards. Citibank's Advantage card debuted in 1987 and people began to see the appeal of these cards. To this day, now that almost every card issuer has jumped on the bandwagon, the competition is stiff and credit card companies have marketing departments that are constantly barraging consumers with new types of great offers and bonus rewards.\nHow to Choose a Rebate, Reward, or Cash Back Credit Card\n--------------------------------------------------------\nWe can not emphasize this enough, if you don't think you'll be able to pay off your balance in full each month, do not choose a reward card. Choose a card that has the lowest APR if you need to carry a balance; there are plenty of these available. Better yet, avoid credit altogether. Although cash back and rebate\/reward credit cards can offer some relief for costly essential items, they often carry higher annual percentage rates than traditional credit cards, according to Consumer Reports. A recent study on reward\/rebate credit cards found that rates varied from 9.75 to as much as 19.99 percent. Any benefit reaped by the reward is quickly eliminated by high APRs. If you know you won't be paying off your bill each month, you should find a card with a low interest rate.\nLet's get back to the question at hand, which type of rewards program is best? The answer is, that totally depends of you, your lifestyle, the products you buy regularly, services you utilize, how much you travel, and the amount of money you spend each month. Here is a short list of some of the most common scenarios offered by credit card companies.\n*   **Airline Reward Cards.** Extremely popular, but sometimes difficult to reap the benefits due to blackout dates, expiration, and simple lack of availability. If you travel a lot and have flexibility in your schedule, this type of credit card may be optimum for you.\n    *   PROS: Many cards offer large bonus miles upon sign-up, thus you may be eligible for a free ticket in very little time, at least initially.\n    *   CONS: In most cases, you need to use airline miles fast. Airlines are always changing their redemption rules, and considering how much the big carriers are struggling these days, holding onto unused miles can cost you. Additionally, you need to consider fee such as booking fees and annual fees (if applicable) as often the airline rewards cards will have annual fees associated with them; it is crucial to determine if the fees outweigh the potential rewards.\n*   **Cash Back Cards.** According to an online poll conducted by CardTrak LLC, 57 percent of Americans prefer cash-back rewards cards (compared to 12 percent favoring airline miles). And they are right on target; good old fashioned cash can be used for any purchase, and the cash back accumulates without you actually having to do anything.\n    The typical account of this type will post credits ranging from 1 to 5 percent, usually up to a monthly limit, or cap, of about $500 of spending in the appropriate categories, depending on the card. Once you accumulate a minimum amount of cash or points credit (anywhere from $20 to $50) you typically can request account credit, ask for a check to be mailed to you, or use the money to purchase goods in a designated store.\n    The exception to this, the Discover More(SM) Card (and possibly other card issuers) offer you a bonus of 10 to 25 percent if you redeem your cash or points for gift cards; if the gift card is for a product or service you need anyway, you can get a $50 gift card instead of $40 cash or account credit.\n*   **Gas Reward Cards.** There are some great credit cards out there that provide rebates (or cash back) specifically on purchases at qualifying gas stations. Traditionally, gas cards have been affiliated with the big oil companies (such as Shell, Mobil, etc) but this ties you to one particular brand and often, the savings is \"negated\" by higher prices for \"name brand\" gas.\nSuggestions For Using Rewards, Rebate, and Cash Back Cards\n----------------------------------------------------------\n1.  If you don't pay your balance off every month in full, you may want to pass on the rewards cards altogether. Rewards cards often have higher interest rates, you may end up paying much more in interest than you reap in rewards.\n2.  Consider where you shop. Opt for cards that will earn rewards at stores and services you use most often, or offer savings on items that you actually buy regularly; this will maximize your rebate based on your individual spending patterns.\n3.  Carefully review reward program rules. Read the fine print or better yet, call the company and ask if X, Y, or Z qualify.\n4.  Always review your monthly statements and track points or cash back levels.\n5.  Keep your eyes open for new and better offers. Competition stimulates change, so don't set loyalty to any particular card.\n6.  Avoid cards with annual fees.\n7.  Charge as much of your required monthly expenditures as possible.\n8.  Avoid temptation. Research has shown that credit card customers are tempted to charge more in order to earn points toward a reward, in essence overspending for a freebie they don't even need.\nRebate and reward cards are an ever-evolving business. Inorder to keep on top of the game, pay off the balances each month and know the fine print of the program. If you can control your expenditures to items you need, without adding extra expense just to obtain rewards, they can be a great way to supplement income with little effort on your part. END
 TITLE: Credit Card Rewards and Rebate Offers CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Tips Using a Debit Card When Traveling Overseas CONTENT: Safely Use Your Debit Card Abroad\n---------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 25, 2017_\nWhen you go on vacation, you expect an interruption in your daily habits, but that hair-trigger use of your debit card probably isn't among them. It's become second-nature, hasn't it? From a $200 grocery trip here, to a $5 coffee there, most of give our debit cards a swipe a dozen more times a week - quicker than cash and, in most cases, smarter than credit cards. But when it comes to foreign travel, while you most certainly can and should take your debit card with you, there are a whole host of reasons to limit its use.\n1.  Ask your bank if your debit card is accepted in the foreign country to which you are traveling. If not, ask about your options.\n2.  Only plan to use your debit card for cash withdrawals at ATM's. The goal is to avoid having anyone else handling your debit card, as special card readers can be used to copy and store the information on your card's magnetic strip. This information can then be used to create a clone of your card. So if you are going to use a card for purchases, make it a credit card, as fraudulent charges are more easily disputed than that of a debit card.\n3.  Ask your bank if there are other banks whose ATM's you can use interchangeably, with no additional fee. Otherwise, just like in the States, you will be charged an extra fee for using an ATM from that of another bank.\n4.  Ask your bank what the daily limit is for how much cash you can withdraw from ATM's. Plan your trip accordingly, making daily withdrawals, if necessary, to be sure you have enough cash on hand to fund the entirety of your trip.\n5.  Ask your bank whether they charge a flat fee for withdraws, or a percentage of the withdrawal. Then plan your withdrawals accordingly. For instance, if they charge a flat rate for every transaction, the more you can withdraw at a time, the better. If they only charge a percentage, though, your withdrawals can be more flexible and frequent.\n6.  Take with you a back-up debit card. Though it may happen rarely, ATM machines do eat debit cards on occasion.\n7.  Avoid use of \"non-bank\" ATM's. Just as in the States, these third-party ATM's charge a higher fee than bank ATM's.\n8.  Supplement your debit card - which, again, should only be used for ATM cash withdrawals - with credit cards and traveler's checks.\nFollowing some of this simple steps can make your overseas traveling much more enjoyable. Doing a little homework prior to your trip will alleviate any mishaps down the road. You want to be as prepared as possible before you go on your trip because who wants to spend their vacation time worrying about their debit card and how to get money. END
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 TITLE: Financial Reform Bill HR 4173 CONTENT: Free Credit Score with Financial Reform Bill\n--------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nThe passing of the \"Wall Street Reform Act and Consumer Protection Act\", HR 4173, on July 21, 2010, brought consumers many benefits in terms of financial protection and oversite. Of the top changes that the financial reform brought to the table, the one we will talk about in this article is the ability for consumers to get their credit score for free. In a nutshell, this bill established an independent consumer bureau within the Federal Reserve which protects borrowers against abuses in mortgage, credit card and other types of lending.\nCan You Get Your Score For Free?\n--------------------------------\nHaving said all of that, what in the world does HR 4173 have to do with getting a free credit score? Well, before the passage of this bill, consumers were only able to see their credit score if they paid for it or if they signed up for a credit monitoring service. Now, consumers are able to get a free credit score:\n1.  If you were denied a job, insurance or loan due to your credit. Or, if you feel that you are getting a higher interest rate or insurance rate due to bad credit, but you will need to find a way to document this.\n2.  If you have suffered some kind of adverse action due to your credit. Include a copy of the letter you received about being denied credit.\nHow to Get Your Free Credit Score\n---------------------------------\nIf you have been denied credit or suffered some kind of adverse action due to your credit, you will need to do the following:\n1.  Write to the three credit bureaus documenting your reason for requesting a free credit score. Here are the contact addresses for the credit bureaus.\n2.  Send your letter certified, return receipt requested.\nWhat if I Don't Qualify for a Free Score?\n-----------------------------------------\nAs you can tell, the financial reform bill was designed to help those who may have been wronged by a lending institution or feel they may have been denied a loan erroneously. If you suffered one of the above actions, you are entitled to see your credit score for free so that you know what your score is and then you can work on making it better. If you do not qualify for a free score, you will have to either pay for when you request a copy of your credit report from www.annualcreditreport.com. You can also check out our pages on recommended ways to get credit reports or credit monitoring services.\nEither way, it is always a good idea to pull your credit report at least once a year and make sure to remove any negative information. Doing this will make sure you have an adequate credit score for the next time you apply for that credit card or auto loan. END
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 TITLE: Travel and Safety Tips Using Credit Cards on Vacation CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 24, 2017_\nIf you are planning a trip in the near future, whether it be domestic or abroad, an important part of your vacation planning process should include consideration of how you will handle money and expenditures on your trip. In most cases, a credit card is the best bet when you travel, especially in a foreign country. But there are certain precautions that you should take when traveling with plastic.\nWhen you travel abroad, the odds are in your favor that you will have a safe and incident-free trip. Travelers are, however, sometimes victimized by crime and violence, or experience unexpected difficulties. No one is better able to tell you this than the U.S. consular officers who work in more than 250 U.S. embassies and consulates around the globe. Every day U.S. embassies and consulates receive calls from American citizens in distress.\nKeep Your Credit Cards and Money Safe During Travel\n---------------------------------------------------\nBelow we've created a list of items you should review and be aware of to use as a guide for credit card and monetary safety during travel.\n*   **Select appropriate credit cards for your destination.**  Visa and MasterCard are the most widely accepted cards just about anywhere in the world, so if you have these you likely will be covered. If you have access to a local guidebook for the destination you plan to visit, these generally will address the subject as well. It is a good idea to have two different cards (from different issuers), in the event you have a problem with one.\n*   **Confirm your card limits and expiration dates.**  Likely to be common sense, but many of us are tuned to idiot gages, we don't change our oil until we see the light come on, we don't know our card is expiring until the new one comes in the mail. Make sure the card(s) you bring will be useable for the entire trip length.\n*   **Find out what fees to expect.**  If traveling abroad, call your card issuer and ask what their foreign currency exchange fee or foreign transaction fee(s) are. Fees generally range from 1 to 2 percent, so you should try to select cards with the lowest fees. The Capital One card is the only card that we are aware of that does not charge a fee for foreign transactions.\n*   **Confirm contact information for your card issuer.**  Typically the customer service 800 numbers printed on the back of your card are not good abroad; call your card issuer and get the appropriate telephone number for the region you are traveling to. While you are at it, inform the issuer that you will be traveling at this location, as often an unusual change in charging habits or location may result in the fraud department placing restrictions on your account.\n*   **Backup your critical information.**  You will want to have a list of your credit card information and phone numbers for card issuers in the event they are lost or stolen. Additionally, you should photocopy your passport and airline tickets and keep these in the same place in case those are lost or stolen along with your cards. Keep this separate from your wallet and cards; if you have any secure information on it, you should keep it in a hotel safe or a secure area on the internet that you can safely access. It is also a good idea to leave copies of the front and back of each credit card, and any other important documents you are carrying, with a friend or close relative back home.\n*   **Confirm acceptance of your credit card prior to your purchase.**  The presence of a credit card logo on a door, window or cash register is not a guarantee of acceptance, so it is important to ask prior to committing to the service or meal lest you will be seeking other payment methods.\n*   **Keep all your receipts.**  This is a good rule of thumb for all credit card expenditures, but particularly for those made abroad. If a charge appears later that is inaccurate, you will have the proof available for your dispute. Keep them for several months in the event charges are delayed, which is not unusual with foreign transactions.\n*   **Treat your plastic as if it was cash.**  Don't leave it unattended in your luggage or hotel room; store it in your wallet or money belt, and keep these out of view of others while traveling. Beware of pickpocket scams, a common scenario is someone bumping into you and another distracting you while the pickpocket lifts your wallet or grabs a purse.\n*   **Beware of duplicate charges.**  This may most often occur when you have used a credit card to hold a reservation for lodging or car rental, and then you pay the bill in cash instead. As stated above, keep all your receipts whether it is cash or credit to ensure you have proof of payment in the event of this sort of error.\n*   **Keep some cash on hand at all times.**  Carry enough for a day's safety net in the event that you run into problems with your credit card.\nA few preventative measures will help keep the loss or theft of your wallet a minor annoyance instead of a vacation-halting affair, while making your trip a more relaxing and safer adventure. END
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 TITLE: How Your Credit Score is Calculated by the Credit Bureaus CONTENT: What Goes Into Calculating Your Credit Score?\n---------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nA credit score represents a person's creditworthiness and this score is used by just about all lending institutions to determine whether or not they are going to lend you money to buy a house, a car, or issue you a credit card. Your credit score is based on your credit history and your credit history is compiled by the credit bureaus. The three main credit bureaus are Experian, Equifax, and TransUnion. These bureaus, or credit reporting agencies, obtain your credit history from a variety of sources and they organize it into an easy to read report.\nWhat's in Your Credit Score?\n----------------------------\nThat is a great question and one that is not so easy to explain. FICO is one statistical method to come up with a score and so is VantageScore. Both of these programs use all of your data, put it into a program to analyze the data, and out comes a number. The exact computation is a highly guarded secret but we do know what items go into arriving at your score. According to the FICO website, here are the percentages of importance of each of the following categories which are used to determine your FICO Score:\n*   Payment History — 35%\n*   Amounts Owed — 30%\n*   Length of Credit History — 15%\n*   New Credit — 10%\n*   Types of Credit Used — 10%\nYour FICO Score takes into consideration ALL of the above categories, no one piece of information or factor alone will determine your score. Keep in mind lenders look at more than just your score. They are able to weigh other factors, such as income and job stability, when evaluating you as a credit risk.\n### Payment History\nYour credit report will contain all account payment information such as the type of account, number of timely or late payments, delinquencies, past due items and number of accounts paid as agreed.\n### Amounts Owed\nThis portion of your credit history shows amounts you owe on open accounts, number of accounts with balances, proportion of credit lines used, and proportion of installment loans still owing. This data is used to determine if your accounts are maxed out or if you are able to keep your accounts with low or no balances.\n### Length of Credit History\nWhen reviewing the accounts you have open, certain weight is given to the time since you opened the account and how much time has lapsed since you had any activity on a certain account. In other words, the longer you have a credit card account open and they can see you have used it recently, the better it bodes for your credit score.\n### Types of Credit Used\nThis factor may not carry a lot of weight percentage-wise, but it is an important factor when determining your credit score. Do you have a lot of different types of accounts such as revolving, installment, mortgage, or other consumer finance accounts? They more diverse your account portfolio, the better.\nWhat Makes a Good Credit Score?\n-------------------------------\nIf you want to see approximations of how much weight certain factors are given in comparison to others, read our article on Credit Scores and What Influences Them.\nFrom the TransUnion's website, these are the kinds of \"trades\" (types of credit listed on your credit report) that go into a perfect credit score:\n1.  A few (say, 3 or 4) revolving credit cards, each with very high lines of credit ($10,000+), and very low carried balances on only 1 (or maybe 2) of them at a time.\n2.  At least one charge card, such as American Express, Diners Club, etc.\n3.  All trade lines at least 6 months old, and at least 1 more than 3 years old.\n4.  No derogatory notations.\n5.  Very few inquiries — no more than 1 to 3 in a six month period.\n6.  At least one installment trade line in good standing, i.e., a mortgage, auto loan, or student loan.\nAs you can see, it takes a diverse and negative free credit history to be able to achieve a high credit score. Don't feel defeated, you can raise your credit score by addressing each one of the contributing factors and making sure to clean up any negative or late payments. Start to pay your accounts on time and make sure to keep low balances on them. Diversify and maybe consolidate some accounts so you don't spread yourself too thin. With some work, you can have an excellent credit score and reap the benefits of low interest rates and money saved! END
 TITLE: How Your Credit Score is Calculated by the Credit Bureaus CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
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 TITLE: Credit Card Use Before and After a Disaster CONTENT: Credit Card Tips Before and After Disasters\n-------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 24, 2017_\nWhen disaster strikes, the last thing you want to have to worry about is how you're going to pay for the aftermath. Yet, money matters rear their ugly heads certainly, and almost immediately, in the wake of a disaster. It's in cases like these when credit cards may be used to their full potential. May this serve as yet another reason to keep your credit in check.\n1\\. Keep Your Credit Card Balances Near Zero\n--------------------------------------------\nThis way, if and when disaster strikes, you will have credit available for emergency expenses. Plus, the lower your balances, the better your credit utilization ratio and, in turn, the better your credit score. Of course, this need not — and should not — mean you avoid use of your credit cards on a regular basis. On the contrary, use them every month to make a purchase here or there, but with the intention of paying off the balance every month. If and when you do carry a balance month-to-month, make it a priority to at least make more than your minimum payment and avoid using the card again until the balance has returned to zero.\n2\\. Record Your Credit Card Information\n---------------------------------------\nIn the event that your credit cards are lost in a disaster, a list is invaluable and should include:\n*   Name of the credit card and the issuing bank\n*   Your account number\n*   Toll-free number for the issuing bank\n*   Recurring payments scheduled to be made from each account\nAs for where to store this list, you may consider your cell phone, provided you use password protection and encryption features. Otherwise, you may consider a safe deposit box or fireproof lock-box in your home. In fact, it may be a good idea to store a couple of copies of this information in a couple of these places, just in case one or the other proves inaccessible.\n3\\. Research Credit Card Emergency Assistance Programs\n------------------------------------------------------\nA number of credit card issuers have emergency associated programs, which can help facilitate the search for hotel accommodations and travel. Ask your current credit card issuers if they have such programs or, if you're in the market for a new card, make this a priority feature.\n4\\. Call Your Credit Card Issuers As Soon As Possible After Disaster Strikes\n----------------------------------------------------------------------------\nIf you have lost your credit card, request another, which the issuer should be able to send to you via overnight mail. Also, ask them to consider suspending your minimum monthly payment and\/or providing you with a credit limit increase to help you cover the cost of emergency expenses.\n5\\. Use a Credit Card to Cover Housing, Food, Clothes and Other Disaster-Related Expenses\n-----------------------------------------------------------------------------------------\nThough you may have insurance that covers the cost of most or all of the expenses associated with a disaster, it will probably be some time before insurance claims are processed and paid. This is the one time when it is advisable to live off your credit cards! If you've done a good job of keeping your balances low, you may even be able to use your cards to fund any necessary restoration or reconstruction projects.\n6\\. Pay Down Your Credit Card Balances as Soon as Possible\n----------------------------------------------------------\nIt's devastating enough recovering from a disaster. The last thing you need is for it to instigate a mountain of debt that will only compound your anxiety and stress for months, even years to come. So if you do receive insurance money, put it fully toward any debt you charged for disaster-related expenses. And if none of these expenses are covered by insurance, take the time to sit down and review your budget. Once your basic living expenses have been provided for, and things have returned to relative \"normal\" again, cut back where you can to make more than your monthly minimum payments on your cards until they're paid down to zero. END
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 TITLE: Factors That May Influence Your Credit Score CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 26, 2017_\nA question we get all the time about credit scores is what influences them, i.e., exactly what actions have what affect on your credit score? This has been a mystery and will probably remain a mystery for quite some time. There are journalists who have been able to extract some information from FICO, but exact numbers and calculations will be a forever highly guarded secret. Below you will see a chart roughly summarizing the affects of certain actions on a person with an excellent credit score and then a person with an average credit score.\nIf your score is 680\nIf your score is 780\nMaxed-Out Card\n down 10 to 30 points\n down 25 to 45 points\n30-day Late Payment\n down 60 to 80 points\n down 90 to 110 points\nDebt Settlement\n down 45 to 65 points\n down 105 to 125 points\nForeclosure\n down 85 to 105 points\n down 140 to 160 points\nBankruptcy\n down 130 to 150 points\n down 220 to 240 points\nBesides giving out how much your score will drop, there is still not much we know about how the starting score is calculated. Your FICO Score, which is used by the majority of all lending institutions, was developed by Fair Isaac. This scoring model did not start out to be the industry standard, but has since become an integral part of the credit granting process. The FICO scoring model took years to develop and Fair Isaac has all kinds of empirical data to back up the accuracy of their model. The lending industry, who finds comfort in numbers, gets a warm and fuzzy feeling of fairness by using this model: since almost everyone uses it so it gives the impression that everyone being measured by the same yardstick.\nFactors That Influence Your Credit Score\n----------------------------------------\nYour credit score is based on information taken from your credit report. According to Experian, there are about 30 individual factors used to determine your credit score. Some factors have more weight than others and one factor may be more important to you than another person based on the differences in each person's credit report. Also, each factor can change as your credit report changes. Here are the five categories used when determining your credit score:\n1.  **Payment History** — Payment information on credit cards, installment loans (such as a car loan), mortgage loans or finance company accounts. Details on late or missed payments, including how much was owed, how late the payments were and how recently they occurred. How many accounts show no late payments. According to Fair Isaac, this category usually determines about 35 percent of your score.\n2.  **Outstanding Debt** — Amount owed on all accounts and on different types of accounts, such as credit cards or installment loans. How many accounts have balances? How close are you to each credit limit? According to Fair Isaac, this category usually determines about 30 percent of your score.\n3.  **Credit History** — How long have you been building a credit history? How long specific accounts have been established and how long since you used each account? According to Fair Isaac, this category usually determines about 15 percent of your score.\n4.  **Pursuit of New Credit** — How many inquiries and new accounts does your report show, and how recent are they? How long has it been since the most recent inquiry? Whether you have made on-time payments to re-build your credit after a period of frequent late payments. According to Fair Isaac, this category usually determines about 10 percent of your score.\n5.  **Type of Credit in Use** — How many accounts are reported for bank cards, travel and entertainment cards, department store cards, installment loans, and so on. According to Fair Isaac, this category usually determines about 10 percent of your score.\nAlso informative is the list of reasons that may be provided to account for why a score isn't higher. When lenders request your credit score, they also receive a list of the four most significant reasons your score is not higher - they should share the reasons listed on the report with you. Possible FICO reason are:\n*   Amount owed on accounts is too high.\n*   Delinquency on accounts.\n*   Too few bank revolving accounts.\n*   Too many bank or national revolving accounts.\n*   Too many accounts with balances.\n*   Consumer finance accounts.\n*   Account payment history too new to rate.\n*   Too many recent inquiries in the last 12 months.\n*   Too many accounts opened in the last 12 months.\n*   Proportion of balances to credit limits is too high on revolving accounts.\n*   Amount owed on revolving accounts is too high.\n*   Length of revolving credit history is too short.\n*   Time since delinquency is too recent or unknown.\n*   Length of credit history is too short.\n*   Lack of recent bank revolving information.\n*   Lack of recent revolving account information.\n*   No recent non-mortgage balance information.\n*   Number of accounts with delinquency.\n*   Too few accounts currently paid as agreed.\n*   Time since derogatory public record or collection.\n*   Amount past due on accounts.\n*   Serious delinquency, derogatory public record, or collection.\n*   Too many bank or national revolving accounts with balances.\n*   No recent revolving balances.\n*   Proportion of loan balances to loan amounts is too high.\n*   Lack of recent installment loan information.\n*   Date of last inquiry too recent.\n*   Time since most recent account opening too short.\n*   Number of revolving accounts.\n*   Number of bank revolving or other revolving accounts.\n*   Number of established accounts.\n*   No recent bankcard balances.\n*   Too few accounts with recent payment information.\nKeep in mind, many lenders use their own credit scoring models along with the FICO scoring model so you may get different scores from each model. Your score will also change over time and some creditors may not report to all the credit bureaus. So having said all of that, there is really no clear cut answer as to what exactly influences your credit score and how much. There are general guidelines provided but no clear cut numbers to quantify how much your score will increase\/decrease with a certain action. Best advice, just work on cleaning up your credit and paying your bills on time. END
 TITLE: Factors That May Influence Your Credit Score CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
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 TITLE: Credit Score Myths - What Does Not Affect Your Score CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nKnowing your credit score allows you to make changes and improvements to your overall credit profile. But did you know, 42 percent of Americans fail to regularly check their score which is equivalent to a financial grade point average. As one senior director of Visa, Inc. puts it, \"not checking your credit score at least once a year is like driving with your eyes closed, you are risking a financial collision.\"\nMyths Surrounding Credit Scores\n-------------------------------\nYour credit score impacts your ability to get a home loan to being hired for a job. But do you really know what does and does not affect your score? According to a study done by Visa, Inc., many Americans don't know what goes into determining a credit score. In the study, 60 percent of those surveyed thought employment history factored into their credit score and 17 percent thought gender was a factor. These people are wrong on both assumptions.\nBelow are the percentages of respondents who incorrectly thought these factors were included in determining their credit score:\n*   Employment History: 60%\n*   Interest Rates on Debt: 59%\n*   Amount of Money in Savings Account: 53%\n*   Your Age: 39%\n*   Where You Live: 25%\n*   Ethnicity: 22%\n*   Ability to Speak English: 22%\n*   Your Gender: 17%\n*   Your Race: 16%\nFactors Which Do Not Affect Your Credit Score\n---------------------------------------------\nThe reality is, the above mentioned factors do not have the slightest affect on your credit score. It would be illegal for Fair Issac to consider race, religion, birthplace, gender, or marital status when determining your credit score. According to myFICO.com, here is a list of **what is not** considered in your FICO score:\n*   **Your race, color, religion, national origin, sex and marital status.**  U.S. law prohibits credit scoring from considering these facts, as well as any receipt of public assistance, or the exercise of any consumer right under the Consumer Credit Protection Act.\n*   **Your age.**  Other types of scores may consider your age, but FICO scores don't.\n*   **Your salary, occupation, title, employer, date employed or employment history.**  Lenders may consider this information, however, as may other types of scores.\n*   **Where you live.**\n*   **Any interest rate being charged on a particular credit card or other account.**\n*   **Any items reported as child\/family support obligations or rental agreements.**\n*   **Certain types of credit inquiries.**  FICO does not count consumer-initiated inquiries, requests you have made for your credit report, in order to check it. It also does not count promotional inquiries, requests made by lenders in order to make you a pre-approved credit offer. Nor does it consider administrative inquiries,  requests made by lenders to review your account with them. Requests that are marked as coming from employers are not counted either.\n*   **Any information not found in your credit report.**\n*   **Any information that is not proven to be predictive of future credit performance.**\n*   **Whether or not you are participating in a credit counseling of any kind.**\nNow, we are not saying _nobody_ cares about such things as your income or work history. A landlord or loan officer will likely want to know about your salary or employment history but it in no way affects your credit score. END
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 TITLE: Unexpected Things That May Lower Your Credit Score CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nIf you have thought about fixing your credit or maybe you are already in the midst of the credit repair process, you know the end result is a higher credit score. Throughout this site, we give you tips on what to do to increase your score but we haven't really touched on what NOT to do. We uncovered some surprising things you might unintentionally do that will affect your credit score in a negative manner.\n### Renting a Car\nYes, you read that right, renting a car may have a negative impact on your credit score. Reason being, there are a few rental car companies that will pull a hard inquiry on your credit prior to renting a car to you. One such company, that does this as a routine practice if you are trying to rent a car using a debit card, is Dollar Rent-A-Car.\nAs you know from our article on How to Erase Credit Inquires From Your Credit Report, a hard pull inquiry can affect your score. So, before you rent a car, make sure to ask the company if they are going to pull your credit and if so, go to a different company or use a credit card to rent your next car.\n### Applying For Credit\nThis is a good segue from the prior point because applying for credit is another way of getting an inquiry on your credit report. Every time you apply for credit, be it a credit card or loan, a hard inquiry is placed on your credit file which may lower your credit score. It may be a few points, but the more you apply for credit, the more the negative points add up. To avoid this scenario, talk to the lender first before they pull your credit and see what their criteria is for a loan. If you are fixing your credit, chances are you already know your credit score so you will know if you qualify for that loan or not.\n### Having Credit Cards But No Loans\nOne very important part of your credit score is the diversity of your accounts. According to FICO, the category of \"types of credit used\" makes up 10 percent of your credit score. That may not seem like a lot, but it is an important factor when determining your credit score.\nWhen evaluating the types of credit used, the credit bureaus are looking for different types of accounts such as revolving, installment, mortgage, and other consumer finance account. The more diverse your credit portfolio, the better.\n### Just a Single Late Payment\nWe actually just wrote an article on this very topic, One Late Payment Makes a Big Impact On Your Score - True or False. Guess what, it is TRUE! If you are thinking about paying on the credit card late or missing a payment altogether because you think it won't matter — it will.\nOne way to avoid this is to determine with the lender, how late is late? How many days can go by after the payment due date before they consider your payment late. Is it 10 days, 25 days, 30 days? And, while you are at it, give them a call to explain your situation. Chances are, your lender will be more willing to work it out with you if you call them then to just miss a payment altogether.\n### Divorce\nWhile you were married, chances are you bought a house together, a car, and probably obtained a few credit cards which were all in both of your names. Now you are divorced, but does that mean you are off the hook for that loan on the car your husband took in the settlement? Well, if you were a co-signer on the loan, you are still on the hook for the loan and this loan is going to show up on your credit report until it is paid off.\nAny joint accounts will remain on both parties credit reports. If your ex declares bankruptcy, creditors will come after you for balances on any joint accounts. And, any late payments will show up on your credit report as well. The best thing to do prior to and during a divorce, is to get these loans into one or the others names alone. That may mean applying for the loan all over again but it will be worth it down the road if your ex becomes financially insolvent.\n### Closing an Account\nMany people think getting rid of a credit card they no longer want is a good idea as it will show lenders they are not so credit-dependent. But, this is a bad idea for two reasons:\n1.  It can raise your utilization percentage.\n2.  A closed account is often purged from your report sooner (7 to 10 years) than an open one, which can remain on your report indefinitely causing you to lose all of the positive credit history associated with that account.\nSo, as you can see, there are few surprising things you might inadvertently do that could lower your credit score. We always talk about what to do to increase your credit score, but we also need to be aware of those little things that could lower it as well. Now, go ahead and start working on repairing your credit — you have all the tools you need right here on our website to increase your score and fix your credit. END
 TITLE: Figuring Out Your Credit Utilization Ratio CONTENT: How to Figure Your Credit Utilization Ratio\n-------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nIf you don’t know your credit utilization ratio, it’s time to find out. Fortunately, it’s an easy figure to calculate. It’s simply a matter of doing the math on relevant revolving accounts. It’s also an easy figure to fix if you discover yours is too high.\n**Do the Math**\n---------------\nYour credit utilization ratio is how much you owe compared to how much credit you have available. Here’s how to figure yours.\n**1) Make a list of your revolving accounts**\nA revolving account is a credit line that may have a different balance every month, as well as a different minimum monthly payment (depending on what you owe).\nSo when making your list to figure your credit utilization ratio, include credit cards, department store cards, gas cards, and any other type of retail card. One exception is your home equity line of credit (HELOC). Though technically a revolving account, FICO does not include HELOCs when calculating your credit utilization ratio.\nOther things NOT to include in this list are auto loans, student loans, a home equity loan, or _charge_ accounts that require you to pay the balance in full every month (like an American Express charge card).\n**2) Add up your total credit limit**\nIf you have a $10,000 credit limit one card, a $5,000 credit limit on a second card, and a $5,000 credit limit on a third card, your total credit limit is $20,000.\n**3) Add up the balances on each of these cards**\nIf you have a balance of $5,000 on the first card, $2,500 on the second card, and $2,500 on the third card, your total balance is $10,000.\n**4) Divide the balance by the credit limit**\nIf your total balance is $10,000, divide that by your total credit limit of $20,000. In this example, your credit utilization ratio would be 50 percent.\n**Aim for 30 Percent or Less**\n------------------------------\nAs a general rule of thumb, most credit experts recommend that your credit utilization ratio not exceed more than 30 percent. That’s because a big chunk of your FICO score (30 percent) is determined by how much you owe on your credit accounts.\nWhy does credit utilization ratio matter so much? Because the more available credit you use, the more you may be overextending yourself, and that’s a credit risk.\nFor example, if you have a $20,000 credit limit, you do not want to have a balance of more than $6,000 at any given time. That’s 30 percent. You might think it doesn’t matter as long as you’re paying your balances in full every month, right? Wrong.\nAs FICO states on its website:\n_\"Your account balance on your credit report will reflect the account balance your lender reported to the credit bureau (typically the balance from your latest monthly statement).\"_\n_\"So even if you pay your credit card balances in full each month, your account balance won’t necessarily show on your credit report as $0.\"_\nThat’s okay. It just further punctuates the importance of trying not to use more than 30 percent of your credit at any one time. But if you do, then make as large a payment as you can right away to bring that ratio down as soon as possible.\n**More Than Your Credit Score to Think About**\n----------------------------------------------\nYes, keeping your credit utilization ratio low is good for your credit score. But it’s also good for your bank account. The higher the balances you carry, the greater the possibility that you will get in over your head and start carrying debt from month to month, which means more debt and costly interest fees.\n**Need to Lower Your Credit Utilization Ratio?**\n------------------------------------------------\nTry the avalanche or snowball method on your outstanding credit card balances. END
 TITLE: Information on Credit Cards, Debit Cards, MasterCard, Visa CONTENT: Everything You Need to Know About Credit Cards\n----------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 26, 2017_\nThere are so many credit card products available today — it can be overwhelming and confusing. Everyone at some point in their lives has received a credit card offer in the mail, but how do you know if that is a good credit card for you?  And, with all of the cards now available, what types of cards are the best deals today? We have tried to compile as much free credit card information as possible and listed the most frequently asked questions below. With information always changing, we try to keep this page updated but it can be challenging at times. Always do you own due diligence before filling out the next credit card application to make sure you are getting the best deal for your situation.\nWhat Types of Cards Are Available?\n----------------------------------\n*   **Credit Cards:** The credit card issuer gives you a card. You use the card to pay for items and services up to a certain total amount — your credit limit. The store merchant or service provider collects what you owe from the card issuer, whom you repay.\n*   **Charge Cards:** These are also called travel and entertainment cards and are a little different from credit cards. Charge cards, such as American Express and Diners Club, have no credit limit. You can usually charge as much as you want, but are required to pay off your entire balance when your bill arrives.\n*   **ATM Cards:** ATM cards are issued by banks, essentially to give bank customers flexibility in their banking hours. In most areas, you can use an ATM card to withdraw money, make deposits, transfer money between accounts, find out your balance, get a cash advance, and even make loan payments at all hours of the day or night.\n*   **Debit Cards:** Debit cards combine the functions of ATM cards and checks. When you pay with a debit card, the money is automatically deducted from your checking account.\nIs a MasterCard Better Than a VISA? What About American Express or Diners Club?\n-------------------------------------------------------------------------------\nMasterCard and VISA don't actually issue cards — they are just the payment network that transactions are processed over. In the U.S., almost any establishment that takes MasterCard takes VISA, and vice versa.\nAccording to WalletHub, at the end of 2016, VISA had 335 million cards (52.8%) in circulation. Compared to MasterCard with 200 million (31.6%), American Express with 47.5 million (7.5%) cards, and Discover with 51.4 million (8.1%) cards in circulation.  \nAmerican Express, Diners Club, and their kin were originally aimed at the more upscale \"travel and entertainment\" market. They are accepted at many places, though not as many as VISA and MC. Some places don't take MC and VISA but do take American Express or Diners Club.\nAmerican Express used to be very handy for traveling in Europe. Among other things, it would let you cash personal checks drawn on your U.S. bank at any of their many offices. Nowadays, however, with your VISA or MasterCard, you can get cash advances at local banks at a better exchange rate.\nThe best card for you is the one that is accepted where you shop and charges you the least amount of money for the services you actually use. For example, if you always pay off your balance each month, it is important to get a card with a grace period; the interest rate doesn't matter much.\nWhy Do MasterCard\/VISA Cards Have Different Rates and Fees?\n-----------------------------------------------------------\nMasterCard and VISA rates are set independently by the banks issuing them. In fact, a given bank may offer several different rate and fee schedules. Sometimes you can pick which one you want; other times the bank will offer you a single set of terms with no option, even though it offers another customer a different set of terms. That's why it's worth shopping around rather than just applying for \"a MasterCard\" or \"a VISA.\" \nWhat is a Secured Card?\n-----------------------\nSecured cards require you to make a bank deposit up front. The limit on the card is usually related to the amount of the bank deposit. The bank has the right to take money from your deposit if you don't pay your bill.\nSecured cards are usually approved for people who have credit problems and can't get an unsecured card. A secured card from a bank is a great way for someone to rebuild their credit and eventually, the issuing bank may switch the card to an unsecured card if the customer pays their balance on time and proves they are now a more favorable credit risk.\nA secured MasterCard or VISA looks just like a regular credit card and the law ensures that it has all the same consumer protections.\nYou can see a list of secured cards we recommend.\nWhat is an Unsecured Card?\n--------------------------\nYou probably won't hear this term often because it is the norm. A \"regular\" credit card is and unsecured card. Unsecured simply means the bank can't take specific assets of yours in the event that you don't pay your bill, but rather would have to sue you or force you into bankruptcy to collect.\nWhat is a Debit Card?\n---------------------\nAs its name implies, it is not a credit card. Instead of running up a bill that you pay at the end of the month, the debit card runs down your checking account at the moment the sale is made. Merchants like these because they get instant payment without worrying about bad checks.\nDebit cards are convenient but they do have drawbacks. It is a lot more painful to resolve a problem with a purchase if the money is gone from your account (as with a debit card) than if it's just numbers on a piece of paper (as with a credit card). And if you lose a debit card, your whole account can be emptied with no recourse for you. You decide whether you want to take that risk.\nConsumers in the know don't like debit cards because they offer less protection than credit cards in the event of a billing dispute. See our document on billing errors and overcharges.\nHow Does an ATM Card Differ From a Debit Card?\n----------------------------------------------\nAn ATM (automatic teller machine) card is a form of debit card but you use it in a cash machine by punching in your code number. A debit card looks very much like a credit card and is treated like a credit card by most merchants but the purchase is immediately deducted from your checking account. An ATM card looks nothing like a credit card, has no Visa or MC logos on it, and is only good for making cash withdrawals from your checking account at cash machines.\nThe ATM card is a little less dangerous if you lose it, since nobody can use it to drain your account without knowing your PIN (personal identification number). Also, most banks limit the amount of cash that can be withdrawn with an ATM card in a day. A VISA or MasterCard debit card allows a thief clean out your entire account with one purchase.\nWhat is a PIN?\n--------------\nA PIN is a password that goes with your card and allows you to make certain types of electronic transactions involving your card. In some countries, most credit card purchases are validated with a PIN. Although you can still use your card without one, they may sometimes have to phone for authorization. Also, if you have a PIN, you can get cash advances from many cash machines. Note however that it is best to get a 4-digit PIN; longer PINs are not accepted by some networks.\nAlso, protect your PIN as if it were cash. Do NOT write it down anywhere near your card. With this number, and your card, a thief could run your card to its maximum in cash advances.\nSome Common Credit Card Terms\n-----------------------------\n**Annual Fee**  \nA flat, yearly charge similar to a membership fee\n**Annual Percentage Rate (APR)**  \nA measure of the cost of credit that expresses the finance charge, which includes interest and may also include other charges, as a yearly rate.\n**Finance Charge**  \nThe dollar amount you pay to use credit. Besides interest costs, it may include other charges associated with transactions such as cash advance fees.\n**Grace Period**  \nA time, about 25 days, during which you can pay your credit card bill without paying a finance charge. Under almost all credit card plans, the grace period **only** applies if you pay your balance in full each month. It does not apply if you carry a balance forward. Also, the grace period does not apply to cash advances.\n**Interest Rate**  \nInterest rates on credit card plans change over time. Some are explicitly tied to changes in other interest rates such as the prime rate or the Treasury Bill rate and are called **variable rate** plans. Others are not explicitly tied to changes in other interest rates and are called **fixed rate** plans.\nHow Do Credit Card Companies Calculate Credit Card Interest Each Month?\n-----------------------------------------------------------------------\nTo calculate the interest on your card each month, the lender multiplies the card's interest rate (the APR) times your card balance. This will give the interest for the entire year. The lender will divide this interest calculated by the number of months in the year, or 12. The sticky part is calculating the credit card balance. This is why it's important to choose a card with a grace period (see last question). If you do have a balance on your card, there are three methods of calculating it:\n**Average Daily Balance**  \nWith average daily balance (the most common method), the issuer calculates the balance by taking the amount of debt you had in your account each day during the period covered by the billing statement and averaging it.\n**Previous Balance**  \nWith this method, the issuer uses the balance outstanding at the end of the previous period-- that is, the period prior to the one covered by the current billing statement.\n**Adjusted Balance Method**  \nWith this method, the balance is derived by subtracting the payments you've made from the previous balance. END
 TITLE: Information on Credit Cards, Fraud Prevention, Types of Cards CONTENT: General Information About Credit Cards\n--------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 23, 2017_\nIf you have been looking for easy to understand information on credit cards, you have come to the right place. Over the years, we have talked to thousands of people and we always seem to get the same questions over and over again. So, we have compiled the most popular questions with answers with regards to credit cards. If you need information about good and bad credit cards, we have another articles addressing those questions.\nThere are many types of credit cards such as secured credit cards, prepaid, low interest rate, reward based, ones for bad credit, and the list goes on and on. We have other articles that can help you find the perfect card to fit your needs but for now, check out the questions below to obtain the general information regarding credit cards.\n**What Do The Digits On a Credit Card Mean?**\n---------------------------------------------\nANSI Standard X4.13-1983 is the system used by most national credit card systems. Phone cards, gas cards, and department store cards have their own numbering systems.\nThe first digit of the card identifies the type of card.\n*   3 is a Travel & Entertainment Card\n*   4 is a Visa\n*   5 is a MasterCard\n*   6 is Discover\n*   American Express starts with 37\n*   Carte Blanche and Diners Club start with 38\nOn AMEX, the third and fourth digits are type and currency and the fifth through eleventh digits are the actual account number. On a VISA card, the second through sixth digits are the bank number and the seventh through fifteenth is the account number. On a MasterCard credit card, digits 2 through 6 are the bank account and the remaining digits are the account number.\n**What to Do If a Credit Card is Lost or Stolen** \n--------------------------------------------------\nIf you have lost your credit card or if it was stolen, call the issuer right away. Check one of your monthly statements for the customer service number. If you don't have access to these statements, look up the issuing bank on the Internet or if you have access to your credit card account online, get the number off of their website.\nThe important thing is to act fast and don't wait a day or even a minute. A lost or stolen credit card has the potential to cause a lot of damage, especially if you have a high credit limit. Once you have reported the card lost or stolen, you should follow-up with a letter stating the following:\n1.  account number\n2.  date of loss or theft\n3.  date it was reported to the card holder\n4.  last authorized transaction including date and amount\nThis will protect you from being liable for any further charges on the account.\n**What is the Toll Free Number for Customer Service?**\n------------------------------------------------------\nFor Discover, call 1-800-347-2683, or 1-800-DISCOVER.\nFor American Express, call 1-800-528-4800.\nFor VISA and MasterCard, the issuing bank handles service of its own customers. The customer service number will be printed somewhere in your bill, or on a page in the packet of stuff the card company sent you when you enrolled. Check the Internet to see if you can find a number listed or you can call directory assistance at 1-800-555-1212 to find out if the bank maintains a toll free number.\n**Reasons You May Have Been Turned Down For a Credit Card**\n-----------------------------------------------------------\nBeing turned down for a credit card or loan can be a shock and you might be a bit worried as to why this happened. Your best bet is to ask the issuing bank why you were declined if they did not provide an explanation in the denial letter you received from them. Before you try to apply for another credit card, read some of our helpful articles on credit repair and getting a reading your credit report.\n*   Credit Reporting Agencies - How to Contact Them\n*   Getting and Reading Your Credit Report\n*   Fixing Your Credit\n**Is It Safe to Give a Credit Card Number Over the Phone?**\n-----------------------------------------------------------\nYou should NEVER give your credit card number to anyone who calls you. Such a call is almost certainly a scam. This is true even if the caller claims to be from your card issuer. Anyone from the issuer who legitimately has your phone number also has the rest of your records, including your card number, right?!\nIf you're making a call in response to a postcard from some company you've never heard of, be very wary. There have been a lot of frauds reported where the victim gave a credit card number and found lots of unauthorized charges on the next month's bill. We are sure that some of these \"you've won a free trip, just give us your card number for the $149 processing fee\" offers are legitimate. But how can you tell over the phone?\nEven when you place the call to a bona fide merchant (such as a mail order company), never give your card number out over a cellular phone. Scanners that snoop on these conversations are available for a few hundred dollars at Radio Shack and your voice can be received by one for a far greater distance than the maximum useful range of your cordless phone. Often these lines are monitored to obtain your credit card, or your vacation plans.\nOf course, if you're calling an established mail order company, giving them your card number is as safe as anything is these days!\n**What Creditors Do If You Can't Pay Your Bill**\n------------------------------------------------\nCredit card debt, like any other debt, does not give your creditors license to harass you. The Fair Debt Collection Practices Act (FDCPA), a Federal Law, was enacted to protect you from creditors. The FDCPA forbids the following collection actions:\n*   The use of violence or other criminal means to harm the physical person, reputation or property of any person.\n*   The use of obscene or profane language or language the natural consequence of which is to abuse the hearer or reader.\n*   Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously with intent to annoy, abuse, or harass any person at the called number.\n*   The false representation or implication that the debt collector is vouched for, bonded by, or affiliated with the United States or any State, including the use of any badge, uniform, or facsimile thereof.\n*   The false representation or implication that any individual is an attorney or that any communication is from an attorney.\n*   The representation or implication that nonpayment of any debt will result in the arrest or imprisonment of any person or the seizure, garnishment, attachment or sale of any property or wages of any person, when such action is unlawful or the debt collector does not intend to take such action.\n*   The false representation or implication that the consumer committed any crime or other personal conduct, in order to disgrace the consumer.\n*   Communicating credit information to any person which is known to be false, including the failure to communicate that a disputed debt is disputed.\n*   The use or distribution of any written communication which simulates or is falsely represented to be a document authorized, issued, or approved by any court, official, or agency of the United States or any State, or which creates a false impression as to its source, authorization, or approval.\n*   The false representation or implication that accounts have been turned over to innocent purchasers for value.\n*   The false representation or implication that documents are legal process.\n*   The false representation or implication that documents are not legal process forms or do not require action by the consumer.\n*   Communication with debtor at unusual (or known-inconvenient) times or places.\n*   Communication with third parties without debtor consent.\n*   False or Misleading Representations including:\n    *   The threat to take any action that cannot legally be taken or that is not intended to be taken.\n    *   Communicating (or threatening to communicate) credit information to any person which is known (or which should be known) to be false, including the failure to communicate that a disputed debt is disputed.\n    *   The use or distribution of any written communication which simulates or is falsely represented to be a document authorized, issued, or approved by any court, official, or agency of the United States or any State, or which creates a false impression as to its source, authorization, or approval.\nThe Federal Reserve Bank puts out a free pamphlet titled \"The Fair Debt Collection Practices Act.\" For a copy, call (215) 574-6115 or write the Federal Reserve Bank of Philadelphia, Public Information\/Publications, P.O. Box 66, Philadelphia, PA 19105-0066. END
 TITLE: Information on Credit Cards, Fraud Prevention, Types of Cards CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Credit Inquiries May Affect Your FICO Score CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 26, 2017_\nCredit inquiries are requests by a legitimate business to check your credit. When you apply for a new credit card, auto loan, or mortgage loan, that lender is going to pull your credit report so they can analyze whether or not you are credit worthy. You may also see inquiries from businesses you do not know as these credit checks are made by businesses looking to offer you goods or services such as promotional offers by credit card companies.\nAccording to myFICO.com, as far as your FICO score is concerned, credit inquiries are classified as either \"hard inquiries\" or \"soft inquiries\" and only hard inquiries have an affect on your FICO score.\nSoft Credit Inquiries\n---------------------\nSoft inquiries are all credit inquiries where your credit is not being reviewed by a lender. These may include:\n*   Inquiries where you are checking your own credit.\n*   Credit checks made by businesses to offer you goods or services, such as a promotional offer by a credit card company.\n*   Inquires made by lenders with whom you already have a credit account.\nHard Credit Inquiries\n---------------------\nHard inquiries are all credit inquiries where a potential lender is reviewing your credit because you have applied for credit with them. These types of credit checks could be from:\n*   Application for an auto loan\n*   Application for a credit card\n*   Application for a home loan\nEach of these type of credit check counts as a single inquiry, except when you are rate shopping. FICO considers all inquiries made with a 2 week period for an auto or mortgage loan to be a single inquiry.\nWill All Hard Inquiries Affect Your Credit Score?\n-------------------------------------------------\nHard inquiries may or may not affect your FICO score. A FICO score takes into account only voluntary inquiries that result from your application for credit. The information about inquiries that can be factored into your FICO score includes:\n*   Number of recently open accounts and the type of accounts. Opening several credit accounts in a short period of time may lower your score.\n*   Number of recent credit inquiries. The only time this will not affect your score is if you are rate shopping.\nHow Will Credit Inquiries Affect Your Score?\n--------------------------------------------\nThat seems to be the million dollar question and FICO is not going to give that exact information out to just anyone. In fact, they give that information out to no one. According once again to myFICO.com, \"the impact from applying for credit will vary from person to person based on their unique credit histories.\" How's that for vague. Furthermore, credit inquiries have a small impact on one's FICO score, generally less than 5 points.\nStatistically, people with 6 inquiries or more on their credit reports can be up to 8 times more likely to declare bankruptcy than people with no inquiries on their reports. While inquiries can often play a part in assessing risk, they only play a minor part. Much more important factors for your score are how timely you pay your bills and your overall debt burden as indicated on your credit report.\nSo how many inquiries are too many? We can't really tell you for sure, but obviously, you want to keep them to a minimum. END
 TITLE: Understanding the Different Kinds of Credit Card Fees CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 27, 2017_\nWhether you’re searching for a good credit card or just looking to minimize fees on ones you already have, this guide is a good go-to for saving money. You may not be able to avoid credit card fees altogether, but you can most of the time.\nAnnual Fee\n----------\nWhile there are plenty of credit cards that charge no annual fee at all, you’ll find them pretty prevalent within three categories — rewards credit cards, secured credit cards, and subprime credit cards. The trick to avoiding them is shopping around. That said, there are a couple of exceptions when you may want to pay the fee anyway:\n1) The rewards you expect to earn are greater than the fee\n2) You expect to carry a balance (never ideal, by the way) and the interest rate is low enough to make an annual fee worth it\nDo the math and choose accordingly.\nIf you already have a credit card for which you’re paying an annual fee, you can always look at switching to one that doesn’t.\nInterest Fee\n------------\nIf you carry a balance on your credit card, you are going to be charged an interest fee. Ideally, you want to avoid this fee by paying off your balance by the due date every month. In reality, you may end up carrying a balance now and then. If and when that’s the case, you want your interest fee to be as low as possible. That’s why this is such an important factor to take into account when shopping around for a credit card. Always look for the lowest rates.\nOf course, the rates you qualify for will depend on your credit. The higher the score, the lower the rates. The lower the score, the higher the rates.\nIf you already have a credit card with high interest, try lowering it. Here’s how to ask.\nBalance Transfer Fee\n--------------------\nIf you already have credit card debt, one helpful way of getting it under control is to transfer the balance to a new card with a lower interest rate. However, don’t forget about the balance transfer fee, which is typically a percentage of the amount transferred. It may not be worth the transfer, especially if you’re not sure you can pay off the balance before the introductory interest rate on the new card expires.\nCash Advance Fee\n----------------\nIt’s nice knowing you can use your credit card to get your hands on cash when you need it, but you want to keep these transactions to a minimum. You’ll be charged a cash advance fee every time, which is typically a percentage of the amount you withdraw. Plus, unlike regular credit card transactions, interest may start accruing immediately. As though that’s not bad enough, the interest is usually higher on cash advances than purchases.\nForeign Transaction Fee\n-----------------------\nIf you use your credit card outside of the U.S., you may be charged a foreign transaction fee. So if you want to use your card internationally, be sure to use a credit card that doesn’t charge this fee. If you don’t already have one, look for one. They’re out there.\n**Late Payment Fee**\n--------------------\nPay on time, every time, and you never have to worry about this one. But, as with carrying a balance, there may be a time when you’re late with a payment. Should that time come, you want the penalty to be as low as possible. So if you’re shopping around for a card, make sure you know this fee before you sign up.\nOver-limit Fee\n--------------\nIf you use more than your available credit, you’ll be charged an over-limit fee…_if you opted-in for it_. Translation: Don’t.\nThis is about more than just avoiding the fee. This is about keeping your credit card balance under control. The dream scenario is returning your balance to zero every month. The nightmare scenario is getting so close to your credit limit that your next purchase would push you over the edge, thus charging the over-limit fee. That’s the wrong kind of mindset to manage a credit card.\nWhether it’s a new credit card or an old one, make sure you’re _not_ opted in to this possibility of maxing out and exceeding your limit.\nReturned Payment Fee\n--------------------\nIf you pay your credit card bill from an account that doesn’t have sufficient funds to cover the payment, your credit card issuer may charge you a returned payment fee. For this reason, and a myriad of others, it’s a good reason to keep a close eye on the balances in all of your accounts, particularly ones you’re making payments from on a regular basis.\nWe recommend credit card comparison sites Bankrate, Nerdwallet, Credit Karma, and CardHub. END
 TITLE: Can One Late Payment Affect Your Credit Score CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 26, 2017_\nHave you ever wondered if that one late payment will tank even the most stellar of credit histories? If you are having trouble making ends meet, you are probably trying to resist the temptation to be late with a payment. Assuming this is your first offense, it may not be a big deal but is that really the truth?  Below are some commonly asked questions and we are going to play true or false. Then, you decide if it is worth missing that one payment and if it will affect your credit score.\nWill the Following Affect Your Credit Score — True or False?\n------------------------------------------------------------\n**1\\. The Better Your Credit Score, the More Your Score Suffers From One Late Payment.** _True_. If you have a FICO score of 780 or higher, you can see that number fall by as much as 100 points from just one late payment. By comparison, a score of 680 may see just a 60 to 80 point drop from one late payment.\n**2\\. All Lenders Report Late Payments After 30 Days.** _False_. If you have a long, solid history of making your payments on time, it's possible that the lender will not report the payment as delinquent. That said, don't count on it. Check your credit report and if, indeed, it includes the late payment, refer to point three below.\n**3\\. Once a Late Payment is on Your Record, You're Stuck With It.** _False_. Lenders have the right and ability to remove negative listings from your credit report. This includes late payments. So, if you do make a late payment that gets reported to the credit bureaus, you may ask the lender to remove it. Of course, they are under no legal obligation to do so, meaning you have your work cut out for you. Give them a call and give it a try with the following in mind:\n1.  Give them a good reason for missing the payment.\n2.  Assure them this is an exception that shouldn't happen again.\n3.  Do so in as respectful and patient a manner as possible.\nOf course, if you are unable to have the late payment removed, you can expect it to impact your score in some manner for up to 7 years. That said, the impact of late payments 30 to 60 days late will negligible compared to the impact of payments 90 days late or more.\n**4\\. One Recent Late Payment is More Harmful to Your Score Than Several Late Payments Reported Some Time Ago.** _True_. If you were 30 days late with a payment last month, it will more negatively impact your credit score than several late payments of 30 days or more reported last year, for example.\n**5\\. The Impact of One Late Payment on Your Credit Score Depends Solely on Just How Late You Are.** _False_. While a payment that's 90 days late certainly has more of a negative impact on your score than a payment just 30 days late, other factors come into play. The larger your outstanding balance on the delinquent account, the shorter your credit history, and the greater the number of delinquencies on your other accounts, the more a late payment will hurt your score. END
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 TITLE: Pros and Cons of Credit Card Cash Advance CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 24, 2017_\nUsing your credit card to make purchases is a no brainer and something we all do without even thinking about it. We use our credit cards to pay for gas, groceries, college tuition, food, utilities — just about everything. When was the last time you carried cash in your wallet or better yet, when was the last time you used cash to make a purchase?  We have become so accustom to paying for things with our credit cards that we have lost touch with handling cash. But what if you need cash in a pinch and you need more money than you currently have in your checking or savings account? This is when a cash advance may come in handy but before you go down this avenue, make sure you know all the pros and cons of using a credit card cash advance and if this is the right financial move for you.\nWhat is a Credit Card Cash Advance?\n-----------------------------------\nA cash advance is a loan service provided by your credit card company which allows you to withdraw cash through an ATM, bank withdraw, or by using a \"convenience\" check. Terms and conditions for this type of transaction vary widely from credit card company to credit card company so make sure you review the details in the terms of your card. Typically, you are able to withdraw sums ranging from $50 to a few thousand and your cash advance limit is different from your credit card limit. So, make sure to find this information in your account details as this amount will be listed differently.\nWhy Use a Credit Card Cash Advance?\n-----------------------------------\nA cash advance from one of your credit cards can be an option if you need money right away and you don't have enough cash on hand. If an unforeseen emergency has come up or a one-time expense that cannot be paid for out of funds in your checking or savings account, using a cash advance may be the answer. \nHow Does a Cash Advance Work?\n-----------------------------\nIt might feel the same but a cash advance is very different from using your debit card at an ATM. When you use a debit card, the money is immediately taken out of your account to pay for the purchase and if you don't have enough money in your account to cover the purchase, your purchase will be declined. On the other hand, a cash advance will show up as a charge to your account. Cash advances are more like short-term loans and come with their own fees and interest rate - typically higher than a regular credit card purchase. Again, before you use the cash advance option on your credit card, make sure you know what fees you will be charged and what the interest rate will be on this loan.\nOver the years, consumers using a cash advance to pay for unexpected expenses has decreased dramatically. This is not a surprising statistic due to the costs associated with using a cash advance. Before you decide to use this type of loan, ask yourself these questions:\n*   Can I pay the money back in a month?\n*   Is there another way I can deal with this financial situation?\n*   Do I really need what I am about to buy?\n*   Do I need help in the form of a financial make-over or a lifestyle change?\nPros and Cons of Using a Credit Card Cash Advance\n-------------------------------------------------\nA cash advance is relatively easy to get and it doesn't require any money available in any account. But, this convenience can come with a pretty hefty price in the form of high fees and interest rates. Fees generally fall between 2 and 5 percent of the total amount of the cash advance and there are very few cards that do not charge this type of fee. On top of this high fee, there is also going to be a high interest rate associated with your cash advance. Another drawback to using a credit card cash advance is the fact there is no grace period and interest begins to accumulate as soon as you get the cash. Lastly, taking out a cash advance can also raise your credit utilization rate which may negatively affect your credit score.\nIf it seems like the cons out weigh the pros, you are right. Although getting a cash advance from your credit card may be quick and easy, it is a very expensive way to get money fast. Before you opt for this type of loan, you might want to consider some other ways to get the money you need. Maybe try a credit union, borrowing money from friends or family, or try selling some of your personal property on eBay or CraigsList. While a cash advance can help you fund an unexpected expense, it can be a very expensive short-term loan. It is important to examine your finances carefully and do what it right for you. If you do decide to use a credit card cash advance, make sure you pay it off quickly and get your finances back on track as soon as you can. The quicker you pay this loan off, the better your finances and credit score will be. Using this type of loan once in awhile has its purpose - just don't get in the habit of using this type of high interest loan very often. END
 TITLE: Pros and Cons of Credit Card Cash Advance CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
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 TITLE: Does Renting-to-Own Help Your Credit Score CONTENT: Rent-to-Own Won't Help Your Credit Score\n----------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nWhen you have bad credit and a low credit score, making big purchases can be a challenge, if not down-right impossible. After all, if using a credit card isn't an option, all you're left with is paying cash, and coming up with hundreds, or thousands, of dollars up-front can be tough for just about anyone. Thus, the appeal of rent-to-own, a temptation to be avoided in just about any circumstance.\nWhat is Meant By Rent-to-Own?\n-----------------------------\nRent-to-own most commonly refers to an agreement in which a consumer rents merchandise, with the option to buy, from a rent-to-own store that carries merchandise ranging from furniture, to electronics, to appliances. Payments that include high interest rates are made on a weekly, bi-weekly or monthly basis.\nDo You Need Good Credit to Qualify For Rent-to-Own?\n---------------------------------------------------\nNo, rent-to-own stores do not check credit reports or credit scores, which is what makes them so attractive to those with bad credit histories. Unfortunately, those with bad credit are often already deep in debt. So the last thing they need to do is pay an average of 2 to 3 times more for rent-to-own purchases than if they were to buy the same items at regular retail price. Yet that is precisely what millions of us do. According to a report that includes 2014 statistics from U.S., Mexico, and Canada, there are more than 4.8 million rent-to-own customers, taking in $8.5 billion a year business, supporting as many as 9,000 rent-to-own stores.\nAre Consumers Who Enter Into Rent-to-Own Agreements Obligated to Pay?\n---------------------------------------------------------------------\nNo, consumers may simply rent the merchandise and return it at any time. Of course, this does not include any form of reimbursement, as all payments made up to the point of return have been made in exchange for the rental period. On the other hand, the merchandise automatically transfers ownership to the consumer once a certain number of payments have been made. In fact, 70 percent of rent-to-own customers do end up making all of the required payments in order to own the merchandise. That's an awful lot of people paying 2 to 3 times more than if they'd been able to purchase at regular retail price.\nWill Timely Payments Help Your Credit?\n--------------------------------------\nHere is the sad part, no it won't. Rent-to-own stores do not report to the credit bureaus. Avoid doing business with any store that claims otherwise, as rent-to-own salespeople have been known to stretch the truth on this point.\nWhat if You Stop Making Rent-to-Own Payments?\n---------------------------------------------\nIf payments are late or missed, the rent-to-own store may repossess the rented items.\nCan Late Payments or Merchandise Repossessions Hurt Your Credit?\n----------------------------------------------------------------\nNo, as rent-to-own stores do not report to credit bureaus. But even this isn't much of a silver lining considering that loss of the merchandise means loss of all the money already put toward its purchase.\nPros and Cons of a Rent-to-Own Agreement\n----------------------------------------\nAs with anything, there are always pros and cons to a given situation. We have come up with a few good reasons to go the rent-to-own route and then there are some bad reasons.\nPROS:\n*   Rent-to-own may be a practical, cost-effective option if you are living temporarily in an unfurnished residence. Under these circumstances, renting furniture, electronics and\/or appliances for a couple of months will save you the expense of buying new, and the hassle of selling or moving it once it's time to go.\n*   If you have poor credit, maybe you just emerged from filing bankruptcy, and you have no real savings with which to make a large purchase. Getting furniture or appliances from a rent-to-own store may be your only option at this point.\n*   Maybe you are recently divorced and are forced to move out of your primary residence with just a suitcase of clothes. Getting an apartment may have used up all of your free cash so this is a good way to get some furniture.\nCONS:\n*   You will end up paying almost 5 times more for the item than if you purchased the same item with cash.\n*   Your one-time payments will not be reported to the credit bureaus. So, this purchase and your timely payments is not helping your credit score.\nSo, the bottom line when deciding whether or not to use a rent-to-own store for furniture or appliances, make sure to weigh the pros and cons and make your decision based on your current financial situation and needs. If you can live without that big screen TV until you save up some money, that would be a wiser decision than paying five times more for a TV that will be outdated by next year. Make smart purchases that will benefit you in the long run. END
 TITLE: Does Renting-to-Own Help Your Credit Score CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
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 TITLE: There are Times When You Need a Credit Card CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 27, 2017_\nIt may seem we are always preaching to our readers not to use credit cards. Reason being, if you are visiting our site, chances are you have way too much debt and\/or your credit is bad and you are looking for ways to straighten out your finances. So, using a credit card is probably the last thing you want to do in a situation such as this.\nBut, there are times when you absolutely need a credit card — for no fault of your own — some transactions require the use of a credit card. It is during these times you will need access to a credit card, so having one for just these types of emergencies might be a good idea.\nRenting a Car\n-------------\nIf you have done any traveling lately, chances are you rented a car while at your destination. Then you already know the rental car agencies practically want your first born before they will rent you a car. While it may be possible to rent a car without a major credit card, it is very difficult. Rental car companies will require a deposit, several forms of identification, and proof of insurance.\nDebit cards will not work when renting a car. Reason being, the rental car company puts a large hold on your card to cover any expenses - and debit cards are not capable of handing this type of hold. If you do not have a credit card, or maybe you can not qualify for one, the next best thing to get is a secured card. Make sure to get a secured card with a sizable limit, of say up to $2,000, if you are planning to use it for renting a car.\nChecking Into a Hotel\n---------------------\nSimilar to rental car agencies, most hotels require a credit card to make a reservation and then they require a credit card when you actually check-in to the hotel. Without a credit card, you will need to place a deposit on your room in order to insure against damages and to cover any incidental expenses. These deposits are often made as a hold on a debit card, which can take several days to clear. If you are planning to visit multiple hotels within a week, these holds can add up to over a thousand dollars. Putting a bit of a damper on your travel plans if you don't have enough money in your banking account to cover these holds.\nBuying Something From an Unfamiliar Seller\n------------------------------------------\nLet's say you are going to buy something from a business or person you do not know. A feature that credit card holders enjoy is the ability to request a \"chargeback\" in the event that goods or services paid for are not provided. If you pay for merchandise with a credit card, you can quickly have the charges reversed if you are dealing with an unscrupulous merchant or a company that has gone out of business. If you pay this person with cash, your only recourse is to take them to small claims court and that can be very costly.\nWhen pursuing a chargeback, the merchant must then submit documentation supporting their claim in order to make the refund permanent. And since excessive chargebacks are extremely costly to retailers, just the threat of a chargeback is often enough to convince many companies to stop fighting you and do the right thing - refund your money.\nDuring an Emergency\n-------------------\nDisaster can strike at any time and it usually happens when you are on vacation. Let's say you and your family are taking that vacation to the Grand Canyon and your car breaks down half-way there. You will need a credit card for any repairs to your car and use it to pay for a hotel room while your car is being fixed.\nEven better, if you used a credit card to say, book your airline tickets, and you encounter a travel disruption, chances are the card you used comes with travel insurance or a concierge service. This could be very useful in the event of a personal crisis or natural disaster.\nWhen You Are Robbed\n-------------------\nIf you have your wallet or purse stolen, not only will the thief get all the cash you had on hand, they will also have access to your credit cards. Unfortunately, the cash is long gone but if the thief tries to buy something with your card, you will not be responsible for this charge.\nBy federal law, cardholders are not liable for unauthorized transactions in excess of $50, but actually, rarely do cardholders have to pay for any charges made using a stolen credit card. You must notify the credit card company immediately of the theft so they can close your account and put a theft warning on it. This way, you will not be held responsible for any fraudulent charges and they just might catch the thief.\nHaving and using a credit card is not always bad - you just have to know when to use it. There may be times in your life when you absolutely have to use a credit card, so having one handy could be the difference between staying in that nice hotel or staying in the bed-bug infested one down the road. You should have a credit card handy just for these types of uses and one that has a decent credit limit on it. Just make sure to resist the temptation to use this card for frivolous purchases and racking up the balance - then it will be no good to use when you really need it. END
 TITLE: Will Buying a Home Hurt Your Credit Score CONTENT: Will a Mortgage Loan Hurt Your Credit Score?\n--------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nIn today's housing market, it takes pretty stellar credit to qualify for a home loan. Yet the irony is, if you're not careful, that very same mortgage can lead to the undoing of your credit score. If you're thinking about buying a home, make sure you know how to protect the credit you've worked so hard for.\nShopping For the Best Interest Rate\n-----------------------------------\nThe lower your interest rate, the lower the cost of your mortgage. So take the time to shop around for the best deal. This maximizes the probability that you will be able to maintain your monthly payments and, in turn, good credit standing over the life of your loan.\n### Are You Doing All Your Interest Rate Shopping Within 14 to 45 Days?\nEvery credit inquiry made by a potential creditor counts against your credit score. However, you need not let this deter your from checking with as many lenders as possible for the best interest rate on your mortgage. Simply be sure that all your mortgage inquiries are made within the same 14 to 45 day period and it will only count as one inquiry on your credit reports. In other words, before applying for loans, be sure you have the time, interest and down payment to jump in with both feet!\nCan Your Afford the Monthly Mortgage Payment?\n---------------------------------------------\nEven if you qualify for the lowest of interest rates, it's possible your monthly mortgage payment will be more than you can afford. Make sure you know exactly what that payment will be, plug it into your budget, do the math, and be honest in your estimate of whether this is a debt you can afford. The last thing your credit score needs are late payments, missed payments or, worst-case-scenario, a foreclosure.\n### Make Sure Your Monthly Payments Won't Affect Ability to Pay Other Bills on Time\nIt's all fine and good to give your mortgage payment precedence over all others, ensuring the account remains in good standing. But your credit will surely take a nosedive anyway if paying your mortgage forces credit card accounts, auto loans or other credit lines into late payment, missed payment, collections or charge-off status.\nCan You Afford the Cost of Moving?\n----------------------------------\nThis is an expense almost always underestimated — from the cost of the moving truck, to deposits required for turning on your new utilities. Do the math and make sure these necessary expenses don't force you to be late on any of your credit accounts.\n### Are You Able to Furnish Your New Home Without Giving in to the Temptation of Charging Up Your Credit Cards?\nWhether you already have furniture from your old place or you're starting from scratch, chances are you'll want some new furnishings for your new home. This is a perfectly natural, exciting response to buying a house. However, all too often new homeowners let themselves get carried away, more concerned with filling their space than being mindful of keeping new debt at a minimum. Only charge as much to your credit cards as you can afford to pay off at the end of the month. While this may mean buying secondhand or simply going without for a while, it's far preferable to carrying a balance on your credit cards. Considering all the expenses associated with your move, monthly mortgage payments included, there is the chance all you can afford to make are minimum payments on your cards. In that case, you'll being paying interest and driving up your credit utilization ratio which is one of the main influencers on your credit score. END
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 TITLE: Credit Card Company Tricks to Get Your Business CONTENT: Ways Credit Card Companies Try to Fool You\n------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 22, 2017_\nAre you in the market for a credit card? If so, then you know there are a lot of different kinds of credit cards and credit cards companies have to come up with all kinds of sales pitches to lure customers to their products.  But, no matter how much or how often you are confronted with credit card company tricks of the trade, these ploys can be tantalizingly difficult to resist.\nPre-Approved Credit Cards\n-------------------------\nOn the surfaced, it may seem awfully flattering to find out you have been singled out to get this credit card, but that's pretty much it. The only thing you've been \"pre-approved\" for is to receive a credit card application. Receiving the card itself is more than a matter of accepting the offer. You must still fill out and submit the application so the credit card company can make a \"hard credit inquiry\" to see if your credit is worth the risk. Not only is there the chance you won't qualify — a good chance if you have bad credit — but the hard credit inquiry will remain on your credit report for up to two years and affect your credit score.\nOffering Low Interest Rates\n---------------------------\n\"As low as...\" never means guaranteed. Only those with the best credit qualify for the lowest of rates offered with that particular card. In other words, what's implied, but only made evident in the fine print, is that your interest rate could be \"As high as...\" the highest rate the company dares to charge. And even if you are approved for the lowest rate possible, there's always the possibility the credit card company will raise your rate \"at any time, for any reason,\" a decision they need only make you aware of two weeks prior to the hike.\nBlurred Credit Limits\n---------------------\nInstead of cutting you off at your pre-established credit limit, credit card companies may allow you to exceed it. On the surface, this sounds like a good deal — your credit card company bending a little to help you get more of what you want. On the contrary, all this does is help the credit card companies get more of what they want — your money. Not only are you incurring more debt for which you will be charged interest, but you'll be slapped with a fee for going over your credit limit.\nOffering Cash Back Rewards\n--------------------------\nThis incentive can be especially seductive: Your credit card company paying you for using your credit card? Not quite. Whatever the cash back reward, it likely comes with restrictions that make it far less helpful than it seems. Just because an offer says \"cash back up to five percent,\" for example, it could mean as little as one percent cash back. And it likely only applies for a certain amount charged to the card, and within a certain period of time. While this may still sound like a good deal, not so much if it's this incentive that compels you to charge more and\/or sooner than you normally would. In that case, cash back rewards could end up costing you more in the form of interest in the long run.\nZero Percent Interest on Balance Transfers\n------------------------------------------\nIt's unlikely these days that any balance transfer will enable you to avoid any sort of transfer fee. Plus, you only benefit from the zero percent interest rate on the balance transfer itself. Any new debt charged to the card will have its regular interest rate apply. That's pretty widely understood, but this isn't: your payments will probably go toward the lower interest rate balance first, giving the credit card companies more time to rack up interest on your new debt until the original balance transfer amount is paid off.\nCredit Cards With Fancy Names\n-----------------------------\nOur egos love this one. Surely not just anyone can qualify for a card deemed gold, platinum, elite, or the like. Whether you need it or not, the appeal to apply and see just how special we are can be a lot to resist.\nSmall Business Credit Cards\n---------------------------\nThe difference between a small business credit card and a personal credit card is in name only. Oh, unless you count the fact that business credit cards do not carry the same protections for you as personal credit cards do.\nNow, none of this is to suggest complete avoidance of credit cards. Not only can they be a helpful supplement to our financial lives, but they also help build good credit. The key is to use this information to make the best possible credit card choices. And chances are good the best among them don't come calling for you in the mail, but are ones you seek out and weed out for yourself via a deliberate search for the best deal. END
 TITLE: Prepaid Credit Cards for Teenagers CONTENT: Prepaid Cards Can Teach Teenagers About Money\n---------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 27, 2017_\nOn the heels of the most recent Great Recession, more and more people are experiencing a newfound dedication to becoming financially literate and more careful about how they spend their money. Gone are the days of frivolous spending as many families have had to tighten their belts and give up those extravagances we all took for granted.\nAll of this new found conservation is not going unnoticed by our young Americans. They are seeing how mom and dad have had to pinch pennies and they realize they need to become more careful with their money.\nAdded to all of this financial turmoil was the passage of the CARD act, which barred teens from getting an unsecured credit card. This left parents wondering how they were going to give their child some financial independence. Hence, the exploding popularity of prepaid and preloaded cards and the variety of products now available from all sorts of credit card companies to fill this surging market.\nPros of Getting Your Teen a Prepaid Card\n----------------------------------------\nThe biggest advantage of getting a prepaid card for your teen is being able to teach your child how to manage their money. Having them use this type of card will show them how to use plastic responsibly without the horrors of having them rack up a huge credit card balance. Think of a prepaid card as \"training wheels\" for credit cards.\nAnother positive is the ability to give your teenager financial independence. You, or your child, can load the card with money and then they will be able to use it anywhere, just like a credit card, but without the fear of your child getting into debt. They can only use the amount deposited into the account, so it teaches your child to budget their money.\nCons of Getting a Prepaid Card for Your Teenager\n------------------------------------------------\nThere are a few red flags you need to watch out for when you are selecting a prepaid card for your kid. One of the biggest things to watch out for are the fees - prepaid cards are loaded with fees because that is how the bank profits from these types of products. Since there is no interest rate on balances, the banks have to make their money somehow. But fear not, there are some prepaid and preloaded cards that won't kill you in the fee department.\nAnother disadvantage to using a prepaid card is that is does not help build a credit history. Although they may have a credit card company logo on them, they are NOT credit cards. You are using your own money instead of borrowing it and paying it back.\nBest Prepaid Cards on the Market Today\n--------------------------------------\nAccording to a recent blog post by a well known credit card review company, here are the best prepaid cards for your teen.\n1.  **Kaiku Visa Prepaid Card -** This newcomer to the prepaid card market claims to have the lowest fees in the industry. The monthly maintenance fee is $3\/month and there are no ATM fees if you use one of their 55,000 in-network Allpoint machines. There are not fees for bill payment, activation, replacement, inactivity, or foreign transactions. It features a Funds-ometer to keep track of your spending as well as mobile check loading.\n2.  **Card.com Vis Prepaid Card -** This card has no overdraft fees, no late fees, no minimum balance, $0 sign up fees and no credit check. The fees you have to pay attention to include a $5.95\/month fee (which is waived if you load at least $800 in the prior 30 days via direct deposit), $3 ATM or over the counter withdrawal fee, and a $1 balance inquiry.\n3.  **Mango Money  -** The Mango Money prepaid card allows for you to save money, and it offers an APY of up to 6 percent.  There is a monthly fee of $5 but it is waived if you load at least $500 each month. There are ATM fees but they aren't out of the ordinary. No sign-up fees, bank transfer, or customer service fees.\n4.  **Green Dot Card** - The Green Dot Card has long been known as a leader amongst prepaid cards. You can avoid the $4.95 activation fee by purchasing the Green Dot card online, and there are no ATM charges. The monthly $5.95 can be waived if you load at least $1,000 to the card each month.\n5.  **American Express Serve** - The Serve has many features, including no fees for activation, cash reloads, and using ATMs in its network. The monthly fee is just $1, which is waived if you use direct deposit or add $500 during each statement period. It's also easy to load money via 27,500 CVS\/pharmacy, Family Dollar, Walmart, and participating 7-Eleven locations. END
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 TITLE: Learn How to Increase Your Credit Score CONTENT: Increase Your Credit Score and Improve Your Credit Report\n---------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 27, 2017_\nIncreasing your credit score and repairing your credit are a bit like losing weight — it takes time and there is no quick way to get to where you want to be.  In fact, if you see any advertisements claiming they can improve your credit score quickly, beware! Some methods used for this \"quick fix\" may backfire on you. Our best advise for rebuilding your credit is to manage it carefully over time and take the time to do it right.\nIf you are planning to buy a home or car in the near future, you will need to get your credit cleaned up so you can qualify for that lower interest loan. With a little foresight and due diligence, you can reap giant rewards in the form of a lower mortgage or car payment by qualifying for better loan.\nCheck Your Credit Report\n------------------------\nThis really should go without saying — before you start any type of credit repair process you need to get your credit reports and review what is being reported. You can get a free credit report once a year from AnnualCreditReport.com, or you can read our article on how to get your credit reports for free or for a fee. Either way, get your reports first.\nPay Down Your Credit Cards\n--------------------------\nPaying off your installment loans _may_ can help your score, but typically not as dramatically as paying down, or paying off, revolving accounts like credit cards. The FICO model, and even the Vantage scoring system, weigh credit card debt more heavily. Each individual card as well as your total revolving line should be below 25 percent. If your goal is to increase your credit score, forget about paying down your high interest rate cards first. Work on getting those balances down over higher interest rates to reap the most improvement in credit score.\nDon't Max Out Your Credit Cards\n-------------------------------\nYour available credit is averaged over your billing cycle, which is sometimes less than 30 days. If your limit is say, $5,000 and you charge $5,000, even if you pay it off each month, your credit balance is still going to show $2,500 (a 50 percent usage limit), which is going to make your score plunge.\nFor most small business owners, their credit cards are the way they purchase goods and supplies every month. If the card's limits are used to the hilt this can hurt. But wait you say, these are _business_ cards. Yes, they are and most small business owners still have to personally guarantee their business cards, which means they show up on personal credit reports. If you need to use all of the available credit line on your cards, you may want to consider getting a new card to spread out the credit lines a little.\nMake Sure Your Credit Report is Correctly Reporting Your Credit Limits\n----------------------------------------------------------------------\nIf not, you can call your credit card issuer and ask them to update the list. You can also challenge the limits with the credit bureaus.\nBecome an Authorized User\n-------------------------\nAsk a friend or family member to add you to one of their older credit cards as an authorized user. The older your credit history, the better. If your mother agrees to put you as an authorized user on a card that she has had for 20 years, you could see your score increase dramatically. And with the authorized user plan, you don't even have to have the card in your possession.\nAsk a Creditor for Forgiveness\n------------------------------\nIf you've been a good customer for years, but had a rough patch and missed a payment, you might be able to ask your creditor to forgive a negative listing. You can do this with a goodwill letter. There is no guarantee that a lender will do this, but this method has had lots of success.\nGet Student Loan Payments Current\n---------------------------------\nIf you have a student loan that you have defaulted on or have missed payments, you can enter into a \"rehab program\" which will get your account back on track after 12 months. Sallie-Mae regularly upgrades your loan status to \"Paid as Agreed\" if you make a series of 12 on-time payments.\nDispute Old Negatives\n---------------------\nSay your insurance company never paid a medical bill and now you have a collections account. You can continue protesting that the charge was unjust, or you can try disputing the account with the credit bureaus as \"not mine.\" The older and smaller a collection account, the more likely the collection agency won't have bothered to update good ole eOscar with the correct info and the credit bureau won't be able to match up computer records.\n### Remove a Debt By Paying It Off\nThis method is called pay for delete and it works like a charm on smaller amounts of $500 and under, especially medical collections. Remember to get the agreement in writing before you pay them anything, and only send a money order after you get them to agree. Check here for more info on settling debts.\n### Dispute with Original Creditor\nOur method of disputing with original creditors really works, especially accounts which have been purchased by other banks or are currently with a bank who has gone through some of those massive mergers in the last 10 years. And you have the cases (more common than you think) where some banks just don't keep good records at all. This method is relatively quick.\n### Remove Easy Errors\nTarget the easy errors on your credit report that have a big bang for the buck.\n*   Dispute negatives that are not yours such as late payments, charge-offs, or collections.\n*   Dispute any accounts listed as anything other than \"current\" or \"paid as agreed,\" if you paid on time and in full.\n*   Dispute any accounts that are still listed as unpaid that were included in a settled bankruptcy.\n*   Remove any negative items older than 7 years which should have automatically fallen off your report.\n*   Dispute any account that is listed as \"closed by the credit grantor\" when it wasn't and should be fixed as this is definitely a negative. END
 TITLE: Millennials Love Using Prepaid Debit Cards CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: June 15, 2016_\nFor years, prepaid debit cards were the ugly stepchild of payment card options, wrought with high fees and used predominantly by the unbanked who do not have access to traditional credit or debit cards. But as an April 2015 survey by TD Bank reveals, prepaid debit card use is skyrocketing, with Millennials leading the charge.\nHigher-earning millennials are most likely to be prepaid card \"power users.\" Millennial GPR prepaid card users earning $50,000 to $99,900 per year averaged 10.1 uses per month, compared to an average of 6.2 uses among all GPR prepaid card owners who had used a card that month. One-third of Millennials use prepaid debit cards, and 21 percent of them make over $100,000 a year.\nWhat’s to love about them?\n**Use like a credit card, minus the debt**\n------------------------------------------\nYou can swipe prepaid debit cards anywhere credit cards are accepted, minus the possibility of ever carrying a balance. That means no interest fees. That means no monthly payments or due dates. And it means no debt, a Millennial’s dream come true.\n**Better for your budget**\n--------------------------\nFrom food, to clothes, to vacation spending money, you can load prepaid debit cards with only as much as you have designated in your budget. That means no chance of going over (as with a credit card) and no chance of losing track of where your money goes (as with cash).\n**No credit check**\n-------------------\nApproval is instantaneous (with ID verification). If you want a prepaid debit card, it is yours!\nLimited fees.\n-------------\nWhile prepaid card issuers are notorious for charging high fees, the new generation of prepaid debit cards limit their fees considerably. That’s not universal though, so be on the lookout for activation fees, transaction fees, monthly fees, annual fees, and the like.\nSafer than carrying cash\n------------------------\nLose your cash, you’re out of luck. Lose your prepaid debit card, and you can report the loss (or theft) to the issuer. They should be able to cancel the card and issue you a new one (though a fee may apply).\n**Prepaid Cards vs. Secured Credit Cards**\n------------------------------------------\nIt’s important to understand the distinction, especially if you are trying to rebuild your credit. Prepaid debit card issuers do not report to the credit bureaus. However, many issuers of secured credit cards do.\nFind the right prepaid debit card for you. And, for credit repair purposes, you may want to look into a secured credit card, too. END
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 TITLE: Habits to Follow for a Great Credit Score CONTENT: Habits of People With Excellent Credit Scores\n---------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nWe all know them, people who have an excellent credit score and can get a credit card or low interest loan without batting an eye. These are the types of people we are all envious of because they can apply for a loan with little to no stress knowing they will be getting a great deal on an interest rate. As they say, imitation is the ultimate form of flattery and this can be true for people with good credit. In order to be like them, we need to know what kind of spending, saving, borrowing habits they have and then we can be just like them. Wouldn't you love to be able to walk into a car dealer and walk out with the best deal, or being able to buy a home with the lowest possible interest rate? You can and we will let you in on these habits so you will have more choices in financial providers and lenders - making it easier for you to get a deal on your next loan or credit card.\nMaintain a Budget and Record Your Expenses\n------------------------------------------\nDid you know that over 60 percent of Americans DO NOT maintain a budget and\/or track their expenses? No wonder there are so many people in debt! If you are monitoring your budget, you are more apt to not miss a payment or find yourself short of money when a bill is due. The first step in preparing a budget is to take a look at your monthly income and regular expenses, such as rent\/mortgage, car payment, food, utilities, health care, and keep a monthly report on a spreadsheet. After a few months, you will be able to see where you might be able to cut back or maybe spend more. Having all of your expenses clearly written out will give you the info you need to know where your money is going each month and if you have any extra at the end of the month. Doing this will help you pay your bills on time which helps to increase your credit score.\nHave a System in Place to Pay Bills on Time\n-------------------------------------------\nSetting up automatic payments for your reoccurring bills is a logical next step after monitoring your budget and expenses. This is very important since 35 percent of your FICO score is based on payment history — late payments equal lower credit score.  Just about every bank account lets you set up automatic bill payments through an account. But, if you are not comfortable with that, you could always set reminders on your smart phone or calendar. There are also a lot of companies that will offer automatic bill pay and will even offer perks to use it — such as bonus offers or lower payments. In this age of high tech gadgets and Internet access, there really is no reason why you should not take advantage of this technology and make sure you have a fail-proof system in place to pay your bills on time each and every month.\nMonitor Your Debit and Credit Card Balances\n-------------------------------------------\nThis is a great transition from the previous habit as this can also be done electronically. Keeping on top of how much you put on your debit and credit card is important if you want to keep your credit score high. Make sure you go through your credit card statements and look for any inaccurate or outstanding charges. All banks allow you to do this over the Internet so you don't have to wait for a paper statement to do this — you can pretty much do it daily, if you wanted. This is a great habit to get in to so you can monitor what you are spending your money on and if it looks like your spending is getting out of hand, you can put that card somewhere where you won't use it.\nMinimize Use of Available Credit\n--------------------------------\nAlong with paying your bills on time, your FICO score takes into consideration how much credit you have available — this is called your credit utilization ratio. According to myFICO.com, people with credit scores of 800 and above use on average only 7 percent of their available credit. That means, if you've got credit cards with a combined total limit of $20,000, you need to maintain a balance of $1,400 or less on them.\nIf your credit utilization is higher, then this will drag down your credit score and maxing out credit cards is a sure sign that you are at risk of missing a payment or being over extended. To improve your credit score quickly, pay off the outstanding balances on your credit cards or other loans to increase your amount of available credit.\nThink Twice Before Applying for New Credit\n------------------------------------------\nApplying for a new credit card because your current one is maxed out is NOT the right reason for getting new credit. Each time you apply for new credit, the lender is going to perform a credit check, which is considered a \"hard\" inquiry. Too many hard inquiries can have a negative effect on your credit score. So, unless you really need that new line of credit, think twice before applying for a new credit card or loan.\nRegularly Check Your Credit Reports\n-----------------------------------\nIn order to improve your credit score, you need to know what your score is and what problems you might need to fix. The only way to find this out is to check your credit reports regularly — something people with great credit scores do once a year. You can get a free copy of your credit report every 12 months from AnnualCreditReport.com. This report will show your credit and loan providers, amounts owed, and your payment history. If there are any problems or discrepancies, you need to contact the credit reporting agency right away and dispute these errors.\nTaking the above habits to heart will lead you down the road to a higher credit score and better credit. A few of these habits may be hard to get used to at first, but stick with it because the overall rewards will outweigh the struggle. Once you get into a good habit of budgeting, spending, and reviewing your finances, it will all seem like second nature. You will wonder how you ever got along without these habits. END
 TITLE: Chargebacks Dispute Fraudulent Charges, Consumer Protection CONTENT: Chargebacks Provide Protection to Credit Card Users\n---------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 24, 2017_\nThe chargeback exists primarily to protect consumers. The **Fair Credit Billing Act**, which is part of the **Truth in Lending Act**, was written to protect the consumer against inaccurate and unfair credit billing and credit card practices. Not every situation qualifies as a chargeback, so before you go pursuing this you need to understand what you can and can not dispute with the credit card company.\nDefinition of a Chargeback\n--------------------------\nCredit cards provide protection against fraudulent charges in the form of a chargeback. Let's say you made a purchase, either in-person or on-line, and you later feel wronged by the transaction. Meaning, you did not get the item you ordered or the item you received was not was you thought it was going to be. So, you try to get a refund from the merchant and they won't refund your money.\nOnce you come to this impasse, the next thing for you to do is file for a chargeback. You make your claim with your credit card company giving them all the details of the transaction and why you feel you have been wronged. The issuing bank will investigate the claim and if they find in your favor, they will remove the funds from the merchant's account and put it back into yours - thus giving you a chargeback.\nSteps in the Chargeback Process\n-------------------------------\nThe chargeback process involves a number of steps and may take months to resolved. The typical steps involved are:\n1.  The cardholder contacts their card-issuing bank to dispute a transaction.\n2.  The card-issuing bank determines whether or not there is sufficient evidence to support the cardholder's claim.\n    *   If sufficient evidence is not available, the dispute is declined.\n    *   If sufficient evidence is available, a temporary credit is provided to the cardholder. The card-issuing bank will also start the chargeback process and seek to obtain credit from the merchant's processing bank for the amount in dispute.\n3.  The merchant's processing bank researches the chargeback.\n    *   If they determine the chargeback is invalid, they will refuse the chargeback and return it to the card-issuing bank.\n    *   If they determine the chargeback is valid, they will accept the chargeback and remove the disputed amount from the merchant's account and provide the merchant with a written notification.\nWhat Does Not Qualify as a Chargeback\n-------------------------------------\nPursuing a merchant for a chargeback may sound like a pretty good idea, but don't get carried away. This process is not meant to dispute any and every credit card purchase just so you can get your money back or just because you think a retailer did you wrong. If a product never arrives at your doorstep or it is defective, your first course of action is to call the merchant and try to work out a refund with them first. It's only when the merchant will not refund your money or replace the item should you even consider getting your bank involved.\nNow, if you received the product and you simply do not like it, that is not grounds for a chargeback. According to law, you can not raise a complaint about the quality of merchandise or services you bought in the form of a billing dispute. In these instances, you will have to pursue this under the retailer's return policy.\nWhen it comes to presenting your claim to the card-issuing bank, make sure you have all the supporting documentation to give to them. Don't dispute a charge unless you have some evidence to back up your claim.\nIn summary, a chargeback is a powerful tool when dealing with merchants and fraudulent charges on your credit card. If you have been wronged by a retailer, just the mere suggestion of a chargeback may be enough to resolve the matter in your favor. But, if the retailer is not responding to your threat, don't hesitate to follow through and contact your card-issuing bank and start the chargeback proceedings. END
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 TITLE: Good Mix of Credit for Good Credit Score CONTENT: What's the Right Credit Mix?\n----------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nWe know FICO says the variety of your credit account types, or \"credit mix,\" counts as 10 percent of your credit score. And we know VantageScore says the impact of your credit mix is \"highly influential\" on your credit score. So clearly it is important that we have variety of credit accounts. The question is, how many do we need of each one?\nWell, as you may have guessed, there is no magic number or formula for a credit mix or you’d probably have heard it by now. The best we can do is understand the three main categories of credit accounts, use a mix of them, and do it well.\n**Three Types of Credit to Throw Into the Mix**\n-----------------------------------------------\n**1) Revolving Accounts**\nThese are credit accounts that:\n*   Do NOT need to be paid in full every month\n*   Have minimum monthly payments that fluctuate depending on your balance\n*   Accumulate interest on any balance that is carried over into a new month\nExamples of revolving accounts include bank credit cards, credit union credit cards, retail cards, gas cards, personal lines of credit, and home equity lines of credit.\n**TIP**: Just because you don’t have to pay revolving credit accounts in full every month doesn’t mean you shouldn’t. In fact, when it comes to credit cards, your goal should be only charging as much as you can afford to pay immediately so you can return your balance to zero every month. This not only proves responsible credit use, but also keeps you out of debt and saves you from interest fees.\n**2) Installment Accounts**\nThese are credit accounts that:\n*   Do NOT need to be paid in full every month\n*   Have the same minimum monthly payment over a set period of time (by the end of which, the loan will be paid in full)\n*   Accumulate interest on the balance until it is paid off\nExamples of installment accounts include mortgages, auto loans, student loans, business loans, personal loans, and home equity loans.\nTIP: As important as it is to have a mix of credit, don’t take out an installment loan for the sole purpose of improving your credit. If you’re in the market for a new home, great. If you need a new car, absolutely. If you want to take out a personal loan to consolidate some credit cards, do it. The point being, make sure the installment loan you’re taking out is for something you really do need.\n**3) Open Accounts**\nThese are credit accounts that:\n*   DO need to be paid in full every month\n*   Do NOT accumulate interest\n*   Typically don’t report to the credit bureaus unless you are delinquent\nExamples of open accounts include cell phone accounts and utilities\nTIP: Keep these accounts current. That may not add good credit (since they don’t typically report to the bureaus if you’re in good standing). But they absolutely DO report unpaid balances, which can do bad things to your credit score.\nBottom line, consumers with a good credit mix tend to have the highest credit scores. So do your best to add variety, but only with responsible credit usage. Even if you could achieve the \"perfect\" credit mix, it wouldn’t do you much good if the way you use it drags down your credit score. END
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 TITLE: Swipeless Credit Cards RFID and EMV Smart Chip Technology CONTENT: RFID and EMV Chips Now in Credit Cards\n--------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 25, 2017_\nIf you were one of the estimated 9 million Americans who fell victim to identity theft last year, you know that getting billed for someone else's credit card charges stinks. Enter the RFID (radio frequency identification) and EMV chips in credit cards, which are designed to provide an extra layer of protection against identity theft. \nAn RFID card transmits credit card information through radio waves from a chip embedded in your card. If you are using a card with an RFID chip, and your merchant has a compatible reader, you don't have to swipe your card when making a purchase. You just hold your card inches from the scanner and voila — your sale is transmitted.\nSince October 2015, credit cards in the U.S. have slowly been replaced with new cards that contain the chip-and-PIN technology that the rest of the world has had for years. That means, no more black magnetic stripes; no more signing on the dotted line for purchases.\nHow Does this New Technology Work?\n----------------------------------\nA traditional credit card uses a magnetic strip to store account information, which is retrieved when swiped through a credit card machine. These new credit cards use an RFID to store the same information within a smart chip. The chip is embedded within the credit card itself. When exposed to a contactless credit card reader, the electromagnetic waves emitted by the reader initiate the chip to respond via a small radio antenna, which then transmits the data to the reader and on through the card issuer's network.\nChip and Signature vs. Chip and PIN Cards\n-----------------------------------------\nThere are two different implementations of EMV technology: one is called Chip and Signature, while the other is called Chip and PIN. The vast majority of EMV cards issued in the United States use Chip and Signature, which still requires a signature at the point of sale. Chip and PIN cards are compatible with terminals that require a PIN number, which is often the case at unattended kiosks in Europe and elsewhere. Locations that require Chip and PIN equipped cards include train stations, toll booths, and gas stations.\nWhy is this New Technology so Important?\n----------------------------------------\nThe first reason is security. In the aftermath of so many high profile security breaches at major retailers, the recent move to EMV enabled cards can’t come soon enough. When a retailer is hacked, or when credit card numbers are stolen by other means, criminals can easily encode this information onto another credit card’s magnetic strip, a process called cloning. And one of the easiest ways to acquire credit card numbers is to use a magnetic card reader, either when your card is out of your hands, or by affixing a card reading device to a gas pump or ATM, a process called skimming. With the EMV chip system, skimming and cloning cards become vastly more difficult (though not impossible).\nThe second reason why American cardholders should embrace EMV technology is compatibility. Anyone who has been to Europe lately has probably found that an EMV chip card is now essential to ensure that your credit card transactions are completed smoothly. Sometimes the magnetic stripe works, but other times it unpredictably and stubbornly refuses. Many frustrated Americans traveling abroad have been unable to use their cards in certain locations, and the problem now extends far beyond Europe, as EMV readers are rapidly being deployed in South America, Canada, and other parts of the world. END
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 TITLE: Learn How to Become a Member of the 800 Credit Score Club CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 24, 2017_\nWe have all heard that popular song \"All About the Bass\" — well we are here to tell you it is \"All About the Credit Score.\" If you are fixing your credit, chances are you have seen your credit score and it is not good. According to CNN Money, the average U.S. credit score is now 700 — the highest average credit score since FICO began tracking 12 years ago. Even though the average credit score may be slowly creeping up, there is still a very small percentage of Americans who are in the \"800 or higher\" club. Want to become a member of this exclusive club? Membership includes great interest rates on loans, great deals on credit cards, and piece of mind knowing you will be approved for just about any type of loan. Being in this club also means you have extra money to save because you are paying lower interest rates. Keep reading and learn how to get a credit score of 800 or higher and become a member of the 800 club.\nGet Your Credit Reports and Credit Scores\n-----------------------------------------\nThe Huffington Post revealed nearly 30 percent of people surveyed did not know their credit score. In addition, nearly half of the people surveyed earning less than $30,00 annually did not know their score at all. You need to know your score before you can start to increase your score. It might cost you a few extra dollars, but when you request all your credit reports make sure to get your scores. Keep in mind that each credit reporting agency will have a different score for you so it is a good idea to also get your score from FICO.com. Now you will have a starting point with which to work from and you will have your credit reports so you know where you need to improve.\nLook for inaccurate or damaging information and be prepared to challenge this information with the credit bureaus and creditors. Eliminating this negative information is the first step to increasing your credit score. Delinquent accounts, bankruptcy or other issues can have an impact on your score for up to 10 years. So try your hardest to get these blemished off your credit reports.\nEstablish a Long Credit History and Pay Bills on Time\n-----------------------------------------------------\nMaintaining and managing old accounts is the best way to improve your creditworthiness. The ideal credit history is 10 years or longer. Keeping your older accounts open and active is the best way to increase your credit score.  Remember that credit card you had way back when? Well, don’t close that account just because you don’t use it anymore. In fact, if you still have the card associated with that account, use it a few times each year just to shake the cobwebs off of it. Keeping that account in use and paid off will go a long way to helping get you to the 800 club.\nAlong with using those old credit accounts, make sure to pay all of your bills on time and keep your credit utilization ratios low. According to FICO, 35 percent of your credit score is based on payment history and another 15 percent is the length of your credit history. These two important aspects of credit use make up almost half of your credit score!\nMonitor Your Credit Card Usage\n------------------------------\nMost of us think of credit cards as a bottomless bank account. That is not how the 800 club members view their credit cards — they think of credit cards as a tool and use them sparingly. They keep their credit utilization ratio at 10 percent or less and they always pay their bills on time. Think of it this way, if you have 2 credit cards with $1,000 credit limit on each, that is $2,000 of available credit. You will want to keep your balances at $100 or less on each card or better yet, pay them off each month to avoid accruing interest. Careful use and monitoring of your credit cards will go a long way to increasing your credit score. When you look at what goes into your credit score, 30 percent of it is determined by how much you owe. So, keeping that debt ratio low will jack up your score in no time flat.\nDiversify Your Credit Accounts\n------------------------------\nDiversity in your choice and use of credit accounts makes up 10 percent of your FICO score and those in the 800 club know how to use different types of credit. You need to have a good mix of credit cards, personal loans, auto financing, and mortgages to show creditors you are able to manage multiple accounts. Now, if you do not have some of these types of account, don’t go all gang-busters and apply for them at once. Apply for these loans gradually to avoid placing too many hard credit inquiries on your credit report. As we have said in some of our other articles on repairing your credit, slow and steady wins the race and this could not be truer when trying to increase your credit score.\nIf you have a low credit score and you want to add some of these types of accounts to your portfolio, a great place to apply for these is at your local credit union. Credit unions are a bit more relaxed in their lending practices and they offer those with less than perfect credit the chance to obtain personal or auto loans at competitive interest rates. Once you establish a good rapport with a credit union, getting additional types of credit from them will be easier in the future. You can also try some smaller, local banks, too, as they offer a bit more personalized service compared to the big box banks like Chase or Bank of America.\nCut Your Spending and Lower Your Liabilities\n--------------------------------------------\nWe feel these two tips go hand in hand — kind-a like peas and carrots. Budgeting your money and living a bit more frugally are the sure fire ways members of the 800 club got into the 800 club. Budgeting is a vital part of credit health and keeps you on the steady course of financial stability. Although income is not factored into your credit score, 800 club members know the importance of living within their means and don’t allow comfort of living to interfere with the credit score aspirations. Those in the club don’t try to \"keep up with the Jones’s\" and they make big ticket purchases only when they have the means to pay for them. Plain and simple, don’t buy a Mercedes if you have a Volkswagen budget.\nIn addition to living frugally, members of the club limit and lower their liabilities. Protect you credit score in the following ways:\n*   **Limit Co-Signed Accounts:** Allowing a friend or relative to rely on your credit score is kind, but it could also backfire and damage your credit. Be careful who you help and limit the number of times you offer to help someone. You don’t want to spread your good credit too thin.\n*   **Limit or Eliminate Bad Credit Cards:** Many lenders offer lines of credit to people with bad credit and you might have one of these types of cards in your possession from years gone by. If so, try to negotiate a better interest rate with the bank or just pay it off all together and cease using it for purchases. We know we said use old credit but we mean use old GOOD credit cards. Bad ones won’t do you any good in the long run.\n*   **Lower Your Liabilities:** As we have mentioned before, lowering the amount of money owed is a vital part of what goes into calculating your credit score. So, before you take out a loan to buy that fancy car, make sure you have paid off some other smaller loans first. Piling up more debt on top of debt is not what members of the 800 club practice in their financial affairs.\nGaining membership to the elite 800 club is not out of reach and you can join those lucky few that have an excellent credit score by following our tips. It might take a few years to get there, but when you do, it will be well worth of all the work you put into increasing your credit score. Remember, it is a slow and gradual process so make sure you committed for the long haul. Your financial outlook and bank account will be happy you did. END
 TITLE: Learn How to Become a Member of the 800 Credit Score Club CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Learn How to Prevent Credit Card Fraud CONTENT: Ways to Avoid Credit Card Fraud\n-------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 25, 2017_\nAccording to the _Consumer Sentinel Network, U.S. Department of Justice_ report dated July of 2014, 10 percent of all Americans fell victim to some type of credit card fraud in 2013. The average amount reported on credit card fraud was $399 with a total worldwide amount of $5.55 Billion. Using counterfeit credit cards was the number one type of credit card fraud at 37 percent followed by lost or stolen credit cards at 23 percent. The state of Nevada had the highest incident of credit card fraud followed closely by Colorado and New Hampshire.\nA typical victim spends 44 hours recovering from credit card fraud\/identity theft and an average of $500 repairing the damage to their credit. We urge you to review your credit reports, if you haven't done so in the last 6 months, and check for any fraudulent information. In the meantime, we have some useful information for you on how to avoid credit card fraud and what to do if you are a victim of credit card fraud or identity theft.\nWith the high tech world we live in, your credit card information is always at risk for theft. Check out the following ways to keep it safe:\n1.  **Keep Your Credit Cards Safe.** This may seem a bit obvious but it is the number one way people can steal your identity. Keep your credit cards in a purse or wallet close to your body where it can't be easily snatched away. If you are planning to shop in a high traffic area or maybe out of town, only carry one or two of the credit or debit cards you'll be using - leave the others at home.\n2.  **Shred Anything With Your Credit Card Number on It.** Don't just toss your credit card billing statements in the trash - shred them first before throwing them away. Shred anything that has your credit card number on it before tossing it in the garbage.\n3.  **Don't Sign Blank Credit Card Receipts.** Always verify the amount on your credit card receipt before signing it. If there are any lines that are blank, write \"$0\" on them or draw a line through it. That way, no one can go back later and fill in an amount to charge to your account.\n4.  **Avoid Giving Out Your Credit Card Information.** Only give out your credit card number on calls you initiate to customer service using the number on the back of your credit card. Don't return calls to a phone number left on your answering machine and don't give your credit card number to anyone who calls you requesting the number. Credit card thieves have been known to pose as credit card issuers and other businesses to trick you into giving out your credit card number.\n5.  **Be Safe With Your Credit Card Online.** Never click on email links from anyone pretending to be your bank, credit card company, or other business who uses your personal information, even if the email looks legitimate. These links are often phishing scams and the scammers want to trick you into entering your login information on their fake website. And, before making any purchases off of a website, make sure the site is secure. There will be a lock in the lower right corner of your browser or you can look for a \"https\" at the beginning of the URL.\n6.  **Report Lost or Stolen Credit Cards Immediately.** The sooner you report a missing credit card the less likely it is that you'll have to pay for any fraudulent charges made on your credit card.\n7.  **Review Your Billing Statements Each Month.** Again, that is something that should be done without saying. If you notice any unauthorized charges on your statement, no matter how small, immediately report them to your credit card issuer. You may have to close your account to avoid any further fraudulent charges.\nWhat To Do If You Are a Victim of Credit Card Fraud\n---------------------------------------------------\nPrevention is the best course of action and we have some companies we recommend to help you monitor your credit and fight identity theft. But, if you are a victim of credit card fraud or identity theft we have some tips for you to do immediately:\n1.  **Contact the Credit Bureaus.** Place a \"Fraud Alert\" on your credit reports by calling any one of the credit bureaus. This alert can stop a thief from opening additional accounts in your name.\n2.  **File a Police Report.** File a report with your local police station and keep a copy of the report if you have to deal with any creditors.\n3.  **Contact the Card Issuer.** Immediately contact the issuer of the credit card that was lost or stolen. Follow up this call with a letter so you have the report documented.\n4.  **File a Complaint with the FTC.** The FTC handles complaints from victims of identity theft, provides information to those victims, and refers complaints to major credit reporting and law enforcement agencies. The FTC can also refer your complaint to other government agencies and companies for further action, as well as investigate companies for violations of laws the agency enforces. END
 TITLE: Learn How to Prevent Credit Card Fraud CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
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 TITLE: Increase Your Credit Score to Get a Good Mortgage Loan CONTENT: Increase Your Credit Score Before Applying for a Mortgage Loan\n--------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nIf you have been sidelined from buying a house, you are not the only one. After the real estate market crash of 2008, a lot of homeowners either lost their homes in foreclosure or were so upside down in their loan vs house value that they could not even think about selling their home to buy another one. It does seem as though the housing market is coming back, so this might be a good time to think about jumping in to buying a house. If you have not reviewed your credit reports in a while, you may be in for a surprise and buying a house might not happen as quick as you think. Here are some tips on getting ready to apply for a mortgage and ways to increase your credit score in preparation of getting a good interest rate on a home loan.\nReview and Carefully Analyze Your Credit Reports\n------------------------------------------------\nIf you have not pulled your credit reports in quite a while, then we suggest you go to annualcreditreport.com and pull your credit from all three credit bureaus. You are able to request your reports for free once a year. If you have used this service within the last year, you will have to use one of the other services, like myFICO.com or one of our recommended companies and you will have to pay for them. If you also want to see your credit score, there may be an additional charge or you might have to sign up for a monitoring service. It is worth it if you want to make sure your score is increasing as you are working on fixing your credit.\nNow that you have your credit reports in your hand, go over them very carefully and look for any items that are inaccurate and look for information that isn't verifiable. Remember, the credit bureaus have to be able to verify the information on your credit report and if they can't, it has to come off. For more information on disputing these items, read our articles on how to repair your credit.\nPay Your Bills On Time\n----------------------\nRemember that your payment history accounts for 35 percent of your FICO credit score and current balances have much greater weight on your score than older entries. Bottom line, it is very important to pay your bills on time months before you are even thinking about applying for a home loan. \nThe next piece of that puzzle is paying down the money you owe. If you can, start using extra cash you have on hand and pay down or pay off all of your credit card balances. Do not close these accounts, just get the balances as close to zero as you can. If you don't have any extra cash, see if you can borrow some money from a friend or family member — that way this \"loan\" won't appear on your credit report. If you can't get a loan that way, try getting a loan from peer-to-peer lender. We have heard from some readers that some P2P loans did not show up on their credit reports, but we suggest you find out firsthand from the lender if they report to the credit bureaus or not.\nConsider Other Ways to Boost Your Credit Score\n----------------------------------------------\nSome people approach people they are very close to and ask them to add them to their existing credit card account. As long as that person's credit account has been open for two years or more and they add you as joint or co-owner, you'll see a fast bump in your credit score. Of course this approach exposes both you and your friend to risk, so take this step very carefully.\nThere are many other ways to give your credit score a boost. Our article entitled Build Your Credit has a lot of other ideas on how you can rebuild and build up your credit.\nPay Off Old Debt, But Make a Deal\n---------------------------------\nOnce a legitimate negative is placed in your credit file, it only comes off if the creditor or credit bureau wants it off or seven years pass. Before paying off old bills, contact the creditor and tell them you want to pay off the old amount in exchange for a written guarantee they will remove the old negative item from your credit report. This is what we call \"pay for delete\" and we have devoted an entire article about how to do this correctly and in your favor.\nSome creditors will balk at this but since they have the power to put items on your credit report, they have the power to remove them. If they want your account settled badly enough, they will work you.\nBe Patient\n----------\nFixing your credit and increasing your credit score will take some time so don't be in a rush and then become frustrated when it is not happening fast enough. Give yourself plenty of time to get the results you want before you apply for a home loan. If you are looking to just shave off 10 to 20 points, that may only take a few months. If you have more serious items on your credit and need to increase your score by 50 points or more, that could take a year or more. The take away on this is to not be impatient and rush into buying a property before you have finished all the clean up work. If you take your time and keep at it, your score will be high enough that you will be approved for a loan and better yet, you will get an outstanding interest rate. That alone with save you thousands of dollars a year and will be well worth the wait! END
 TITLE: Prevent Personal Information From Being Sold to Mailing Lists CONTENT: Prevent Credit Bureaus and Other Companies From Selling Your Identity\n---------------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 27, 2017_\nIsn't it annoying to walk down to your mailbox only to find junk mail from companies trying to get you to apply for their credit cards, catalogs offering every imaginable product, or envelops filled with coupons? Americans receive nearly 90 billion (yes - that is billion) pieces of advertising mail. A whopping 59 percent of the mail you receive is junk mail. Obviously, these advertisers think we are going to read all this mail when in fact we might read only half of it.\nNot only does all this mail kill trees, fill up your trash bin and tempt you unnecessarily, you run the real risk of having someone steal your discarded mail and apply for the card for you, essentially hijacking your identity. This is not a pleasant experience. Below are some places to contact either via email or on the Internet, where you can opt out of all of this junk mail.\nOpt Out of Credit Bureau Mailing Lists\n--------------------------------------\nYou can protect yourself from identity theft by taking your name off of the credit bureaus mailing lists. The credit bureaus are one of the biggest offenders when it comes to selling your name and information to the credit card companies who in turn send you all those pre-approved applications. One call to the Opt Out Request Line (for Equifax, Trans Union, Experian and Consumer Credit Associates) is all it takes to permanently remove your name from all marketing lists that the credit agencies supply to direct marketers. You can also opt for a two-year period, renewing your request at any time in the future by calling 1-888-567-8688.\nOpt Out of Credit Card Offers\n-----------------------------\nYou can also fill out the form online www.optoutprescreen.com to opt out of all credit offers sent to you in the mail.\nGet Rid of Junk Mail\n--------------------\nTo get rid of most other junk mail, write a letter giving your complete name, name variations and mailing address to:\n*   Mail Preference Service  \n    Direct Marketing Association  \n    P.O. Box 9008  \n    Farmingdale, NY 11735\n**Call 1-800-407-1088** to opt-out from all mailing and telemarketing lists.\nOnce you write, you'll remain on the Direct Mailing Association opt-out list for five years. It may take up to three months before you notice a significant reduction in the amount of direct mail and phone calls you receive.\nTo be removed from the mailing lists of the major data compilers, call or write to these firms. (Note: These companies also subscribe to the DMA's Mail Preference Service.)\n*   R. L. Polk & Co.  \n    List Compilation  \n    26955 Northwestern Highway  \n    South Field, MI 48034  \n    (810) 728-7000\n*   First Data Info-Source Donnelley Marketing, Inc.  \n    Data Base Operations  \n    1235 \"N\" Ave.  \n    Nevada, IA 50201  \n    (888) 633-4402 or (515) 382-8321\n*   ADVO-Systems  \n    Director of List Maintenance  \n    239 West Service Rd.  \n    Hartford, CT 06120-1280\n*   Metromail Corp.  \n    List Maintenance  \n    901 West Bond  \n    Lincoln, NE 68521  \n    (800) 426-8901\n*   Database America  \n    Compilation Dept.  \n    100 Paragon Dr.  \n    Montvale, NJ 07645  \n    (201) 476-2000 or (800) 223-7777\n*   Haines and Company,Inc.  \n    Criss-Cross Directory  \n    2382 East Walnut Avenue  \n    Fullerton, CA 92631\n*   Donnelly Marketing  \n    Database Operations  \n    416 South Bell  \n    Ames, IA 50010\n*   Acxiom Corporation  \n    1 Information Way  \n    Little Rock, AR 72202  \n    (501) 342-2722\nTelephone Solicitation Lists\n----------------------------\nTo remove your name from many telephone solicitation lists, send your complete name, address and phone number with area code to:\nTelephone Preference Service  \nDirect Marketing Association  \nP.O. Box 9014  \nFarmingdale, NY 11735\nStop Receiving Coupons\n----------------------\nTo reduce or stop receiving coupons, ads and\/or product samples in your mail, you will need to contact the companies distributing these materials to your residence. You can write or call these companies and request that your name and address be removed from their company's mailing lists. One such company mailing these materials is:\nAdvo Incorporated  \nDelivery Services  \n1001 West Walnut Street  \nCompton, CA 90220-5191  \n(310) 637-0438\nStop Yellow Page Phone Book Delivery\n------------------------------------\nGo online to get a list of local directory publishers. Visit YellowPagesOptOut.com and input your zip code to their search field. The results will show you local directory publishers and how to contact them.\nOpt Out of Online Databases\n---------------------------\nrights.org END
 TITLE: How Rapid Rescore Increases Your Credit Score CONTENT: Rapid Rescore May Increase Your Credit Score Fast\n-------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nImagine this — you are getting ready to close on your home loan when your loan officer calls to say your credit score went down 20 points from when they originally pulled your credit. A 20 point decline means the difference between putting 10 percent down on your loan to now having to come up with 20 percent. Unfortunately, you don't have that extra money because you scraped the initial 10 percent together and now you are tapped out. What are you going to do?\nYour loan officer says, \"Let's do a rapid rescore to get your score back up.\" If you are like most people, you have no idea what he is talking about nor do you even know what a rapid rescore is or if it will even help you. We are here to tell you it does work but you need to know the in's and out's of this procedure before you agree to have it done.\nWhat is Rapid Rescore?\n----------------------\nRapid rescoring is just what you might think it sounds like, a rapid way to adjust your credit score. What might take 30 days or more, can take 3 to 7 business days. A rapid rescore is essentially an immediate updating of your credit file.\nIf you try to dispute a legitimate error on your credit report with the credit bureaus, they have 30 days to investigate the dispute and get back to you with their answer. This is far too long to wait if you are trying to finalize a mortgage loan when there are contractual deadlines that need to be met. If you have to wait for the credit bureaus to get back to you in 30 days, chances are your whole deal will probably fall apart.\nSo, instead, what your loan officer will do is provide the proof to the credit bureaus that the errors are bogus and have them immediately recalculate your credit score. This can all be done in a matter of a few days.\nDisputing erroneous information is not the only way you can increase your credit score. Say for instance you have a high balance on one of your credit cards, your loan officer can run what is called a \"what if\" simulator. Basically, this mathematical simulator used by mortgage companies can determine \"what if they paid off their credit card, how much would this increase their score.\" If the loan officer sees this might increase your score enough to get you that better loan, they can suggest you pay off this credit card or pay it down below 30 percent of your credit limit. Once you pay down your card, you can print off your new balance and this can be submitted to the credit bureaus for an immediate update.\nIs Rapid Rescoring the Same as Credit Repair?\n---------------------------------------------\nDoing a rapid rescore is not the same as credit repair for a number of reasons. First of all, rapid rescoring should only be done through a mortgage broker or lender and is not offered by credit repair companies. It will typically cost between $25 to $30 per updated account and this fee should be paid by the lender or broker. This is because according to the Fair Credit Reporting Act, borrowers are not allowed to be charged for disputing inaccurate information on their credit reports. So, if the borrower paid for a rapid rescore, that would be in violation of the FCRA.\nSecondly, you can only dispute inaccurate information when you have acceptable supporting documentation indicating a change in your credit report. Rapid rescore is not a means of disputing negative but accurate information such as late payments, foreclosures, bankruptcies and the like. For instance, you can't pay off a delinquent account and expect it just to fall off your credit report. Having that done takes a lot more effort than just sending in the paid off information to the credit bureaus, something like that needs to be handled with the collection agencies first.\nReasons a Lender Might Suggest Doing a Rapid Rescore\n----------------------------------------------------\nThe bottom line as to why a lender may suggest doing a rapid rescore for you — to close on a loan you might not otherwise qualify for in the first place. Which in the long run means money for the lender and getting a better loan for their customer.\nAs stated before, mortgage brokers or lenders are the only ones who should be providing rapid rescores. According to a Rapid Rescoring website which provides lenders this service, here are some of the steps you may need to follow:\n1.  Find out how many points you need to qualify for the better loan program.\n2.  Which one of the three credit bureaus do you need contact to raise your score. Since all three bureaus will have different scores, which is the one hurting you?\n3.  Run the \"score simulator\" associated with the program your lender is using. This will lay out what you need to address to raise your credit score.\n4.  You as the borrower will need to address all the suggestions that came out of the \"score simulator\" and give this completed documentation to your lender. Be it a new balance on your credit card or maybe some other documentation to support the new information.\n5.  Your lender will provide this information to the credit bureau and you should get a new credit score 3 to 7 days later.\nIn the eyes of the lender, doing a rapid rescore for you is not an inexpensive procedure but they will make it up in the revenue they receive from closing the loan. In the end, rapid rescoring can be a win-win situation for the borrower and the lender. Just remember, this is not a form of credit repair and there may be some negative issues still lingering on your credit reports. To remove those final few blemishes, you will need to follow our tips on credit repair or hire a credit repair company to do it for you. END
 TITLE: How to Stop Automatic Bill Payments CONTENT: How to Stop Automatic Payments to Your Credit Card\n--------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 27, 2017_\nThere is nothing like having your bill paying set on auto pilot. From your gym membership to the cable bill, just about anything can be set up as an automatic payment. In fact, most vendors would rather have it this way as they are assured they are going to get paid on time.\nBut what happens when the neighborhood gym keeps deducting your monthly dues long after you terminated your membership? Stopping them can be a hassle, especially if the company you were paying isn't cooperating. If you're having a hard time working with the company that is automatically charging your credit card because they won't answer their phone, here's what you can do to stop the charges.\nRead the Contract\n-----------------\nFirst of all, read the contract. Some companies make it difficult for you to contact them. In some cases, the only way per the contract to cancel is to call some non-800 number and you get a 30 minute wait on hold. They may also stipulate that you can only stop the charges in writing, another great way to delay stopping the charges. If you see either of these in the contract, we recommend not setting up re-occurring billing with them.\nContact the Billing Department\n------------------------------\nIf notify the billing department of a certain company in writing that you want the service stopped, it could take up to two weeks for them to process your request to stop. This could be dangerous. Some billing cycles happen at odd times of the month; don't count on the fact that if they received it by the end of the month, the next month's payment won't go through. If you decided to send them a letter, send the letter by certified mail, return receipt requested so that you have proof that you sent it in case they fail to respond. Just the fact that you sent a certified letter should encourage compliance. Their mailing address should be on their invoice. If it isn't, or you can't find an invoice, look them up on the web.\nContact Your Bank or Credit Card Company\n----------------------------------------\nYou certainly can complain to your credit card company about the charge. As the article link we just gave you points out, you must at least have attempted to contact the company and request the stop. Once you call the credit card company, follow this up with a letter to your credit card company (also certified) outlining that you have notified the billing company, in writing, of your desire to terminate the service. Include the name of the product or service being cancelled and the amount and frequency of the charge. Be sure to keep copies of both letters and the return receipts.\nMake it clear to your bank or credit card company the fact this charge is \"unauthorized\" as some banks will not charge a fee to stop these types of debits.\nClose Your Credit Card Account\n------------------------------\nClosing your credit card account can definitely a hassle as you must wait for a new card to arrive in the mail. You may also have other automatic payments being made through this card so be sure and keep a list of all the services being automatically charged to a card. If the card involved is a debit card, you won't have to close your checking account just tell the bank the card was lost. The will void out your old card and reissue a new card with a new account number on it.\nWe hope one of the above methods will stop the automatic payments from being deducted from your credit card. If your efforts to stop the charges are still met with no success, contact your State Attorney General office. Most A.G. offices have a consumer protection division and helping citizens who are being taken advantage of is one of the things they do best. Businesses do not like to be investigated by the Attorney General's office and will usually do the right thing after being contacted by them. Another feared agency is the Better Business Bureau — a threat to report to this agency sometimes works wonders. END
 TITLE: Minimize Damage to Your Credit Score From a Short Sale CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nWhen you’re struggling to make your mortgage payment every month, the relief that comes from a short sale can be worth any hit your credit score is going to take. That said, there are things you can do to minimize the damage.\n### **Know What You Are Getting Into**\nThough a short sale may sound preferable to foreclosure, your credit score is still going to take a big hit. While your credit report listings won’t say short sale, they will state that you settled the debt for less than what you owed, and no potential creditor likes to see that. While there is no set number of points you can expect your score to drop, it’s reportedly on par with the same damage you might see from a foreclosure. Also, a short sale will show on your credit report for up to 7 years, so you’re in it for the long haul.\n### **Make Mortgage Payments Until Short Sale is Final**\nLenders are not required to approve a short sale on your home loan. A good incentive for them to do so, however, is to see that you are staying current on your mortgage payments. Plus, you’ll avoid the negative impact of late mortgage payments on your credit reports.\n### **Stay Current With All Other Bills**\nWith a short sale on your credit reports, the last thing you need are any other negative listings. Stay current on everything else, from your car payment and utilities, to credit card bills.\n### **Pay Down Credit Card Debt**\nThe lower your credit utilization ratio, the better you credit score. So give your credit a boost by paying down (and off) any existing credit card debt.\n### **Keep Credit Card Accounts Open**\nJust because you pay off a credit card doesn’t mean you no longer need it. An _open_, paid-off credit card can significantly improve your credit utilization ratio and, in turn, your credit score. The only time to close a credit card account is if you find it impossible to resisting maxing it out.\n### **Keep Using Credit Card Accounts**\nLetting an open credit card account sit idle means missing out on opportunity to significantly improve your credit score. Use the account at least once a month, but only on things you would have to pay for anyway, like gas or a utility bill. Then simply pay off the balance every single month. That’s how you show responsible credit usage and, in turn, build your credit score.\n### Attack Old Debt via Debt Validation\nBefore paying off old credit card debt that was sold to a collection agency, try debt validation first. When a debt is sold, the documents proving your ownership of the debt don’t always change hands. So make the debt collector prove you owe the debt. If they can’t do that, you’re not legally responsible for it and it must be removed from your credit reports.\n### **Negotiate Debt Settlements**\nYou may be surprised at just how little debt collectors will accept to settle a debt, especially if they don’t sense that you’re in any rush to do so. That said, it can be an intimidating process, and one you could pay someone else to do. Fortunately, there is nothing a debt settlement company can do that you cannot do for yourself. Here’s how to settle debts on your own.\n### **Build Emergency Fund**\nIf you’re in the habit of using credit to pay for unexpected expenses, from car repairs to medical bills, then you need to build a bigger emergency fund. While six months of living expenses may be ideal, if you have nothing in your emergency fund at all, shoot for $500 to $1,000 to start. If you set aside just $25 to $50, you’ll be there before you know it.\n### **Build New Positive Credit**\nAfter your credit score takes a hit in the wake of a short sale, you will have trouble qualifying for new credit. However, there are other ways of making a positive impact on your credit score. Try a secured credit card, becoming an authorized user on someone else’s credit card, co-signing on a loan, and\/or peer-to-peer lending.\n### **Monitor Credit Reports and Scores**\nEveryone should check their credit reports at least once a year. It’s free to do so via AnnualCreditReport.com. However, when you’re recovering from a short sale (or any other significantly negative impact on your credit), it’s a good idea to review your reports more often, say two or three times a year. Beyond that, check your credit scores, too, so you can see if and when your positive credit behavior starts making a difference. END
 TITLE: Increase Your Business Credit Score CONTENT: How to Build Up Your Business Credit Score\n------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 26, 2017_\nIf you own a business, you likely have a credit score based on credit reports that require the same diligent monitoring and maintenance as that of your personal score and reports. Unfortunately, business owners tend to overlook this all-important task, many unaware that a business credit score exists at all, presuming everything gets covered under the personal score and reports associated with their name.\nWhether you're well aware of your business credit scores, or this is the first you're hearing of it, now is the time to ensure you're doing all you can to maximize its potential. After all, the better your business credit score (ranging from 1 to 100), the better the interest rates you'll get on business credit accounts.\nObtain Your Business Credit Reports\n-----------------------------------\nAs with your personal credit reports, you can request copies of your business credit reports from the three major credit reporting agencies. You will request it almost the same way as your personal report, the only difference is you will have to input the name of your business and the city and state where the business is located.\nIt is imperative you review all three credit reports for accuracy and errors. If you do find any errors, you will need to dispute them with each of the bureaus. Much the same as you would for your personal credit history. You can find the procedure for disputing inaccurate information in our complete directory of credit repair articles.\nOne major difference between business and personal credit reports is that everyone has access to your business report. Reason being is that lenders or potential customers may want to determine your business's reliability before working with you. Further stressing the fact you should review your report for any inaccurate information on a regular basis.\nVerify Lenders and Vendors Are Reporting to the Credit Bureaus\n--------------------------------------------------------------\nIf you don't see them listed in your credit reports, contact said lenders and\/or vendors and ask them to start reporting your account activity. The process is very similar if a business was going to report late payments made by a vendor, you can have one of your lenders or vendors report on your timely payments.\nFor example, let's say you own a business that makes dog beds and you purchase fabric from XYZ Fabrics (a vendor) fairly regularly. At the end of the month, XYZ Fabrics invoices you for the fabric and you turn around and cut them a check. It would be a great to have XYZ Fabrics report your timely payments to all three major credit bureaus so that your credit history will show you pay your bills on time.\nMake Timely Payments to Your Lenders and Vendors\n------------------------------------------------\nExpounding on what we just mentioned above, once you get a vendor to start reporting to the credit reporting agencies, it is important to make timely payments. Not only will these timely payments show up as positive credit, it will also increase your business credit score. So, having said that, if you make any late payments to your vendors that will cause your credit score to go down.\nApply for a Business Credit Card\n--------------------------------\nUsing a business credit card for purchases related to your business is preferable to using your personal credit card for a few reasons.\n1.  You can easily distinguish between business and personal purchases because you will have a separate listing from each credit card. You will really appreciate this come tax time.\n2.  A business credit card account can offer you certain privileges you would not ordinarily get with a personal credit card.\nIf you don't already have one, you can easily apply for one through most of the major banks such as American Express, Chase Bank, Capital One, Wells Fargo, or Bank of America. You can also check with your local credit union to see if they offer business credit cards. As with personal cards, use it regularly to establish activity on the account, but only charge as much as you can afford to pay off by the end of the month. You need not carry a balance for the card to help your credit, but you do need to use it.\nMonitor Your Business Credit Score and Reports\n----------------------------------------------\nJust because you're making timely payments on all your business credit lines, never take for granted that they're being reported accurately. Follow up to ensure lenders and vendors are, indeed, reporting your payment activity accurately. And keep in mind, consumers and businesses alike find errors on their credit reports all the time. Make it a habit of checking at least once a year, perhaps at the same time as your personal score and reports. END
 TITLE: Learn to Increase Your Credit Card Limit CONTENT: How to Raise Your Credit Card Spending Limit\n--------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 27, 2017_\nCredit card companies try to give new card holders enough credit so they will spend money, but not too much credit so that they spend too much and default on their balance. If this is your first credit card or if you have a low credit score, chances are you were approved for a credit card with a very low credit limit. This means that you may only have a small amount of borrowing power to make purchases, transfer balances or obtain cash advances. If this low credit limit is restricting the kinds of purchases you want to make, you may want to request the credit card company to raise your credit limit. Here are some ways you can accomplish this goal.\nWait for Automatic Increase\n---------------------------\nCredit card issuers may periodically review a customer's account to see if they are worthy of a credit limit increase or not. If so, a card holder may see an increase magically show up on their next billing statement. This typically happens on lower limit accounts. With the recent rash of un-collectable credit card debt running rampant, an automatic increase may not be as easy as it once was. So, we wouldn't recommend holding your breath for this to happen to you. You will probably need to take a little bit of control of the situation so keep reading.\nImprove Your Credit Worthiness\n------------------------------\nYou need to work on improving your perceived worthiness to borrow money from your bank. Your credit score shows lenders what kind of credit risk you are for them, and tells banks whether or not you are trustworthy and able to handle credit responsibly.\nThe easiest way to build your credit worthiness, and thus raise the amount of your line of credit, is to put everything you buy on your credit card. Don't save your card for emergencies. Your credit card company wants to see that you have the ability to spend wisely and to pay back the amount you credit to your card. If you rarely use the card, the company will wonder why you would need a higher credit limit.\nMake Timely Payments on the Balance Due\n---------------------------------------\nThe second best way to improve your credit limit is to pay as much as possible on your outstanding balance every month and pay them on time. If you can, make every attempt to pay the entire amount; in any case, always pay more than the minimum required. By doing this, you will demonstrate to the credit card company that you are striving to improve your credit rating. You'll be showing them that you do deserve a higher credit level.\nProvide Proof of Income\n-----------------------\nSome credit cards may require proof of income before they will grant you a higher credit limit. With others, you may find their website has an online feature with which you can request a raise in credit limit. If you use this feature judiciously, not more often than every four or five months, you may be able to increase your line of credit. Other companies will automatically extend your credit limit if they see you are spending up to your current limit — and paying it back regularly. That last phrase is most important!\nBenefits of an Increased Credit Limit\n-------------------------------------\nIf your credit card company does raise the limit on your credit, it means that you have shown them they can trust you as a borrower of their money. You should realize, however, that a higher credit level may incur more fees, as well as increased interest charges. Be very careful as you begin to operate within a higher limit, to make sure interest rates don't spiral out of your comfort zone.\nThere are plenty of websites on the Internet that offer tips on using your credit wisely and carefully. You may wish to look at some of these to increase your understanding of how credit works, and how you can protect your own credit rating. Keep in mind that granting you increased credit is the way your bank expresses its confidence in you as a borrower — and be sure you are worthy of that confidence. END
 TITLE: FICO Scoring Model is Used the Most Out of All Scoring Models CONTENT: Why the FICO Score Reigns Supreme\n---------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nWhen we talk about credit scores, 9 times out of 10 we're talking about FICO Scores. The Fair Isaac Corporation isn't the only predictive scoring player on the field. True enough, but FICO did invent the game.\nFICO Invented Credit Scoring\n----------------------------\nWilliam Fair, an engineer, and Earl Isaac, a mathematician, founded the Fair Isaac Corporation (FICO) in 1956. Two years later, Fair and Isaac sent letters to 50 of America's largest lenders introducing the credit scoring model. Forty-nine of these letters went unanswered, but it only took one to jumpstart the FICO credit scoring empire.\nIn 1958, FICO built its first credit scoring system for American Investments. Slowly but surely, other lenders came around, including Montgomery Ward, Connecticut Bank and Trust, and Wells Fargo.\nBut it wasn't until 1981 that FICO introduced the first FICO credit bureau risk score. Eight years later, FICO partnered with one of these bureaus, Equifax, to create the first general-purpose FICO score. Two years later, these general-purpose FICO scores were available through all three major credit bureaus, Equifax, TransUnion, and Experian.\nFICO Has 53 Credit Risk Scores\n------------------------------\nAll of the possibilities for predictive scoring cannot be incorporated into one general credit risk score. In fact, there are so many behaviors to track, measure, and predict, that FICO has managed to create 53 different types of credit risk scores. This enables lenders to tailor their credit risk management to the specific nature of their industry and\/or goals.\nFICO Expanded Predictive Scoring Beyond Credit Risk\n---------------------------------------------------\nSince its founding, FICO has received more than 100 patents for its analytics and decision management products. In addition to scoring for credit risk, FICO has predictive scoring models for:\n*   Fighting first-party and third-party application fraud.\n*   Limiting merchant-related risk for banks and acquirers.\n*   Driving profitable growth of bankcard portfolios.\n*   Forecasting patient adherence to prescription medication.\n*   Enabling healthcare insurers to detect and prevent fraud.\n*   Extract the most predictive, actionable insights from transaction data.\n*   Helping businesses make predictive management decisions.\n*   Giving insurers real-time decisions at all point-of-sale opportunities.\n*   Clearly, FICO is the go-to guru on all things predictive scoring, credit-wise and beyond.\nFICO Has Virtually No Competition\n---------------------------------\nIn 2006, the credit bureaus came together to create their own version of a credit score, VantageScore. While FICO felt threatened enough to sue VantageScore in 2007, Fair Isaac could only prove a negligent loss of business to its new competitor. FICO dropped the lawsuit after the court ruled in VantageScore's favor, and the rest is history. Today, 90 percent of lending decisions are made using the FICO score.\nBottom line, your FICO score matters a lot, so do all you can to score well.\nYour FICO score is determined by the listings on your reports with the three major credit bureaus. So if it's been more than a year, request your free copies at AnnualCreditReport.com. Then come back here to Credit Info Center for step-by-step instructions on how to analyze your reports and what to do about negative listings that are dragging your FICO score down. END
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 TITLE: Lower Your Credit Card Interest Rate CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 25, 2017_\nIn a perfect world, your credit card interest rate would be irrelevant because you would never carry a balance on your credit card account and, in turn, would never be charged interest. In reality, you probably carry a balance now and then, or you might find yourself wanting or needing to at some point in the future. If you have looked at your interest rate lately, chances are it is over 20 percent and you are paying way too much each month in interest charges. How can you fix this? Learn to master the art of asking your credit card issuer to lower your interest rate. \nWill a Credit Card Company Lower the Interest Rate Because You Asked?\n---------------------------------------------------------------------\nNot necessarily, but the chances are far better than simply waiting around for your credit card company to notice how much you really do deserve a lower interest rate. They are, after all, in the business of making money. So why in the world would they go out of their way to make less money for a service you seem perfectly fine paying more for?\nIn other words, the only way you're going to get a lower interest rate on your credit card is if you ask for it. Granted, your credit card company is under no obligation to give it to you but, done right, many a happy credit cardholder can attest that this approach does work.\nBest Time to Ask a Credit Card Company For a Lower Interest Rate\n----------------------------------------------------------------\nThe longer you've held an account in good standing, the more likely your credit card issuer is to lower your interest rate.\nFor instance, if you have a credit card that you've been making on-time payments to every month for a year or more, it's the perfect candidate. On the other hand, if you have a credit card you've only had a couple of months or that you've had a recent history of making late payments on, wait and make at least 3 to 6 months worth of on-time payments before calling in with the ask.\nWhat Interest Rate Should You Ask For?\n--------------------------------------\nThis depends on your credit score, but it's a good rule of thumb to shoot for 9 to 12 percent.\nWhat Kind Of Credit is Needed to Lower the Interest Rate?\n---------------------------------------------------------\nYour credit need not be excellent for you to receive a lower interest rate on your credit card. However, it definitely helps if your credit is better than it was when you opened the account.\nHow Does a Credit Card Company Decide Whether to Lower the Rate?\n----------------------------------------------------------------\nA few factors go into a credit card company's decision to lower your interest rate, including:\n*   How politely you ask for it.\n*   Your payment history.\n*   Your current credit score compared to your score when you opened the account.\n*   The prospect of losing your business to a competitor already willing to offer you a lower interest rate.\nHow to Ask a Credit Card Company to Lower the Interest Rate\n-----------------------------------------------------------\nPolitely. Yes, it's a great big credit card company you're dealing with, but the decision really lies with one person - your customer service rep.\nHere's a general how-to of things:\n1.  Hold onto the credit card offers you receive from other issuers with offers of interest rates lower than your current card in question.\n2.  Before you make the call, find out your credit score. Do a little research to see what interest rates and credit cards are being offered for borrowers in your credit score range.\n3.  Call the phone number on the back of your credit card.\n4.  Tell the customer service representative that you are calling to ask for a lower interest rate on your credit card. Chances are slim they will make you an offer at this point. If they do (and it's competitive), great. If not, move on to step 5.\n5.  If they tell you that your rate cannot be lowered, explain that you have received other offers for credit cards with lower interest rates as low as \\[quote the offer\\]. Then tell them you'll be taking your business elsewhere unless they can lower your interest rate accordingly. The interest rate you ask for need not match what you are being offered by another card issuer, particularly if the new offer is very low. You are far better off asking for an interest rate ranging from 9 to 12 percent.\nWhat If They Won't Lower the Interest Rate?\n-------------------------------------------\nIt's not the company saying no, it is just one person. Call back a different day and you just might be on the receiving end of a friendlier voice.\nWhat If I Call Back and the Credit Card Company Still Says No to a Lower Interest Rate?\n---------------------------------------------------------------------------------------\nIf the credit card company still won't budge, you can do one of two things:\n1.  Wait a few months then try again.\n2.  Transfer the balance to a card with another issuer that is offering you a lower interest rate. Just be sure to shop around for the best rates you can find -- on interest rates, of course, but also balance transfer fees.\nToo Afraid to Ask For a Lower Rate?\n-----------------------------------\nGet over it. Rest assured, your credit card issuer is very accustomed to cardholders calling in to request a lower interest rate, so there is nothing odd or out of the ordinary about it. As with anything else in life, the more confidently and calmly you ask, the more likely you are to get what you want. END
 TITLE: The Ins and Outs of Purchasing with Credit Cards CONTENT: Questions Regarding Making Purchases with Credit Cards\n------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 26, 2017_\nIn today's fast paced world, the majority of purchases made are done using a credit card. Credit cards are a convenient method of paying for everything from gas to groceries. Writing a check is so passe as now everyone uses either a debit card or a credit card to make purchases. There are some pitfalls and problems you can encounter if you are not an informed consumer. We have complied the most frequently asked questions from our readers below.\nWhich is better - check or credit card?\n---------------------------------------\nIn general, it's better to use a credit card. When you pay by credit card, the U.S. Fair Credit Billing Act gives you a lot of protections. See our article on Billing Errors and Overcharges. These safeguards don't apply if you pay by check or by debit card.\nCan a merchant ask for my address or phone number?\n--------------------------------------------------\nThis hardly ever happens anymore, but sometimes merchants will ask you for this. Politely refuse.\nLaw: There is no Federal law on the subject. According to Bankcard Holders of America, the laws of CA, DE, GA, MD, MN, NJ, NV, and NY prohibit recording personal information in connection with credit card transactions. Note the word \"recording.\" Strictly interpreted, this means they can ask you to show a driver's license but can't write anything down from it.\nMerchants are not supposedly not allowed to refuse a sale made by Visa or MasterCard solely because the customer refuses to provide additional personal information. According to Bankcard Holders of America, the same is true when you use your American Express card, but not when you use Discover.\nHowever, if merchants have sufficient reason to suspect you are not the authorized card holder, they may ask for further ID. If they do ask for ID, they must not write the information down. If merchants do ask you for any information that that actually write down or put into a computer, it's going to be your zip code, which will help them with sales databases.\nWhat should I do when asked for personal information I don't want to give?\n--------------------------------------------------------------------------\nThe most effective response is to ignore the request. When they say, \"I need your signature and phone,\" simply sign in the proper place and hand them the charge slip without your phone number. Don't comment on the request in any way. More often than not, they won't follow up.\nIf they do notice that you didn't put down the personal information, and ask you again, simply say, \"I don't give that out.\" If they still insist, you have to decide how important it is to you to make a point. If you don't much care, give them what they want so you can get on your way.\nIf you're a privacy fanatic, you can point out that Visa and MasterCard rules don't allow them to require this information and wait to see what they do. If someone is really going to make it that tough on you to hand over your money, walk away.\nCan the merchant charge credit card users more than cash customers for the same item?\n-------------------------------------------------------------------------------------\nYes, if the merchant goes about it the right way. The Federal Truth-in-Lending Act prohibited surcharges on credit card purchases until 1984; since then, there has been no Federal law on that subject. (Other provisions of the law are still in force.) The states of CA, CO, CT, FL, KS, MA, ME, NY, OK, and TX have laws against surcharges, according to Bankcard Holders of America.\nDiscover allows surcharges on credit card purchases, except in the above states. Visa and MasterCard prohibit them. American Express discourages them in general, and specifically prohibits them by merchants that also take MasterCard or Visa because Amex doesn't allow merchants to discriminate against it.\nThere is a loophole: merchants are allowed to give cash discounts. This means in practice that they can't charge you more than the labeled price if you pay by credit card, but they can charge you less if you pay cash. Some companies announce (usually in tiny print in the catalog) that all prices \"reflect cash discount\" of x% so credit card users must pay x% more than the stated price. This may be legal but it certainly violates the spirit of the law or the regulations. I don't know about the \"service fee\" charged credit card users for things like ordering tickets over the phone, but they're certainly not allowed to charge you a higher price in person than if you pay cash.\nI made a hotel reservation and guaranteed it with my credit card. When I showed up, the hotel denied my reservation. Have I any recourse?\n-----------------------------------------------------------------------------------------------------------------------------------------\nThat depends. Most hotels and motels (but not all) subscribe to the \"Lodging Services Addendum\" in their merchant agreement with Visa. If the hotel is one that participates, and they have no room for you when you arrive with a guaranteed reservation, their agreement with Visa requires them to:\n*   Provide the cardholder with at least comparable accommodations for one night at another establishment.\n*   Provide transportation for the cardholder to that establishment.\n*   If requested, allow the cardholder to make a 3-minute local or long distance call.\n*   If requested, forward all messages and calls for the cardholder to the alternate establishment.\nHowever, your unsupported word is not exactly proof that you had a reservation. Next time, write down the date and time you called, the rate you were quoted, which credit card you used for the guarantee, and the confirmation number. (You may have to ask for a confirmation number.) You need that info if there's a problem with your reservation, or if your plans change and you have to cancel.\nSome state laws may protect you when you have a guaranteed reservation, whether you guaranteed it by a deposit or by credit card.\nI paid by check and the merchant wrote my credit card number on the back. If the check bounces, can the merchant charge my card?\n--------------------------------------------------------------------------------------------------------------------------------\nThe answer to this one is no, with a couple of caveats. The merchant shouldn't be writing down your credit card number, your driver's license number or anything else on the back of that check, though they can certainly ask for ID. Most of them can run the check through a scanner using the codes on the bottom of the check to see if it is good, so writing anything down is superfluous.\nFor you rubber check passers: if your check bounces, the merchant can come after you for the amount of the bounced check, something that happens pretty often. If you lose in court, the merchant can garnish your wages. But if they try and charge your card, you can lawfully call the credit card company and claim a false charge.\nCan mail-order merchants charge my card before they ship?\n---------------------------------------------------------\nAccording to Janet Hug of Visa USA, \"a merchant is not permitted to bill ahead of time\" except in case of a deposit or down payment that the customer agrees to. MasterCard said in a letter that a merchant can charge you before shipment only if s\/he tells you and you agree to \"the terms and conditions of the sale.\"\nAmerican Express said the merchant can charge your card as soon as you give your account number; but if you receive the bill before the merchandise, call Amex customer service and you don't have to pay while they investigate.\nIs there any official document that I can take with me to show merchants who violate the rules?\n-----------------------------------------------------------------------------------------------\nYes. If you really think it's necessary, you can print out a copy of your rights from the Federal Trade Commission's website. That should be official enough for any merchant.\nWhere should I report merchants who break the rules?\n----------------------------------------------------\nIf merchants violate any of the above laws, you can report them to your state's or city's consumer protection office or attorney general. If they violate any rules of American Express, the company would like to know about it. Report violations of Visa or MasterCard rules to the bank that issued your card. If the sale was completed, you can also send a letter with a copy of the charge slip to the Visa or MC address given earlier in this section.\nDoes my payment have to reach the lender by the \"due date\" on the bill or is it enough if I just mail it by the due date?\n-------------------------------------------------------------------------------------------------------------------------\nThat's a good question and the answer varies. The Uniform Commercial Code says that a bill is considered paid on the postmark date of the payment, but many states have different laws. Even in states where the bill is considered legally paid on the postmark date, you may find that lenders will consider it paid on the date they process it.\nMy personal practice is to avoid hassles by always mailing payment a reasonable time before the due date. Even if I could push it legally, I don't believe the couple extra days of \"float\" is worth the aggravation of fighting with the lender over this point.\nI have a checking account at the same bank as my Visa. Can the bank freeze my account or take money from it if I miss a payment on my credit card bill?\n-------------------------------------------------------------------------------------------------------------------------------------------------------\nProbably yes. You should check your cardholder agreement. The typical agreement gives the bank the right to take the money in any of your accounts with them if you are delinquent on your bill. Even if there's not such a provision in your cardholder agreement, it's probably buried somewhere in the fine print that governs your deposit account. However, the Fair Credit Billing Act does not let them take any collection action at all if you have properly notified them of a dispute. END
 TITLE: Credit Scoring Model Used by Credit Bureaus CONTENT: VantageScore Scoring Model: The Basics\n--------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nLaunched in 2006 by the nation's three major credit reporting agencies, VantageScore is a scoring system that was suppose to compete with the FICO Score that was produced by the Fair Isaacs Corporation. In October of 2010, VantageScore 2.0 was launched and this updated algorithm was designed in response to a changing credit economy and a shift in the real estate industry from 2007 to 2009. Then in 2015, VantageScore 3.0 was released which created a more predictive and consistent credit scoring model. This new model is also meant to generate scores for the 30 to 35 million \"un-scoreable\" consumers.\nHistory of VantageScore\n-----------------------\nThe big three credit bureaus, TransUnion, Equifax, and Experian created the VantageScore model to create a consistent credit score model across the three bureaus to compete with the FICO score. Thus, they can offer lenders a more \"standardized\" score from the bureaus and cut out the Fair Isaacs Company. With the launch of VantageScore 3.0, it is being touted as \"The New Standard in Credit Scoring,\" but can it successfully compete with the stranglehold FICO has on lenders. It just depends on whether lenders will be willing to change to a different model.\nVantageScore Credit Score\n-------------------------\nUnder the FICO scoring system, scores range from 300 to 850, with the higher numbers indicative of a better credit risk. The older VantageScore systems used a slightly different scoring scale which was confusing to consumers. With the release of 3.0, VantageScore is now more aligned with FICO using the familiar 300 to 850 scoring scale. \nKeep in mind, your VantageScore may still vary between the three credit bureaus. While they all use the same scoring model, the information on your credit report may differ from bureau to bureau.\n### Contributing Factors For Each Credit Score\nThe VantageScore is based on six main variables, versus FICO Score's five variables. Here is a brief comparison of the two with weighted percentages:\n**FICO Score**\n*   Payment History: 35%\n*   Amounts Owed: 30%\n*   Length of Credit History: 15%\n*   Types of Credit Used: 10%\n*   Amount of New Credit: 10%\n**VantageScore**\n*   Recent Credit: 30%\n*   Payment History: 28%\n*   Utilization of Credit: 23%\n*   Account Balances: 9%\n*   Depth of Credit: 9%\n*   Available Credit: 1%\nAdvantages of VantageScore\n--------------------------\nVantageScore claims to score thin file consumers (a consumer with a limited or brief credit history or not enough credit accounts to generate a credit score) more accurately by providing \"predictive\" scores for consumers with limited histories.\nSecondly, VantageScore is based primarily on the last 24 months of actions on a consumer's credit file. Which is beneficial for someone who has been working on repairing their credit and the most recent activity is positive activity.\nLastly, the VantageScore model can consider utility and rental payments provided they appear on the borrower's credit history. However, most landlords still do not report rental history to credit bureaus but if they did, this is one aspect that can be used in a VantageScore and not in a FICO score.\n### Additional Information Regarding VantageScore\nThere is a lot of information on the Internet regarding VantageScore. Here are just a few sources:\n*   Here is what Equifax has to say about VantageScore.\n*   Here is what Experian has to say about VantageScore.\n*   Here is what TransUnion has to say about VantageScore.\n*   Here is a link to the VantageScore main website. END
 TITLE: Calculate Interest Charged on Your Credit Cards CONTENT: How Credit Card Interest Rates Are Calculated\n---------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 19, 2017_\nWhen you are approved for a credit card, it comes with an APR, or annual percentage rate. It’s this rate that’s used to determine how much interest you’re charged if you carry a credit card balance. But its use isn’t as straightforward as you might think. Here’s how credit card interest rates are calculated using your _daily periodic rate_ and _average daily balance_.\n**Turn APR Into a Daily Periodic Rate**\n---------------------------------------\nThough it’s called an annual percentage rate, you’re actually charged interest on a daily basis. To do this, credit card issuers use the APR to determine a daily periodic rate.\nTo find your daily periodic rate, they take your APR and divide it by the number of days in the year – 365, of course. Well, I say “of course” but there are actually issuers that use 360 days instead. For the purposes of this example, let’s stick to the one that makes the most sense (i.e., the actual number of days in a year).\nIf your APR is 15 percent, divided by 365, then your daily periodic rate is .041 percent.\n**Figuring Your Average Daily Balance**\n---------------------------------------\nOnce they have your daily periodic rate, it gets applied to your average daily balance.\nTo find your average daily balance, they look back at the balance you’ve carried every day over the course the month.\nLet’s say your balance was $500 the first 15 days. Then you made a payment of $250, bringing the balance down to $250 for the other 15 days of the month.\nIn this example, your average daily balance would be figured like this:\n1) Multiply $500 by 15 days = $7,500\n2) Multiply $250 by 15 days = $3,750\n3) Add $7,500 and $3,750 = $11,250\n4) Divide $11,250 by 30 (days) = $375\n$375 is your average daily balance for the month.\n**Figuring Your Interest Charge**\n---------------------------------\nHow your interest gets calculated depends on whether interest gets compounded monthly or daily.\n**If your credit card issuer compounds interest on a _monthly_ basis**, then that would mean multiplying $375 (your average daily balance) by .041 percent by 30 (the number of days in the month) making your interest charge $4.61.\n**If your credit card issuer compounds interest on a _daily_ basis** – which is far more common these days – then your interest charge is going to be higher. Here’s how that works:\nAt the end of day one, you’re going to be charged the .041 percent on whatever balance you’re carrying. If it’s $500, then the interest charge is 21 cents. That 21 cents gets tacked on to your balance. So, on day two, you’re going to be charged interest on $500.21. You can see how that would start to add up over the course of the month. It’s in this way that the interest you actually end up paying over the course of a year can be higher than your APR.\n**Minimizing Interest Charges**\n-------------------------------\nThe best way is to avoid interest charges altogether is by paying your balance in full every month. Thanks to credit card grace periods, you will be charged zero interest as long as you pay the balance down to zero by your due date.\nIf you know you can’t pay off the full balance by your due date, the second-best way to minimize interest charges is to pay as much as you can. Not just on your due date, though. As soon as you make a new charge to your credit card, start paying it down right away. Make two, three, even four payments if you can over the course of the month. The goal? To bring that balance down as much as possible so you can minimize the interest charged, especially important if it’s compounding on a daily basis.\n**How to Get Out of Credit Card Debt**\n--------------------------------------\nIf you’re drowning in it, your interest charges are going through the roof. So if you’re not already, start digging yourself out of debt. END
 TITLE: Using Balance Transfers on Credit Cards CONTENT: Considering a Balance Transfer? Answer Yes to These Questions First\n-------------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 25, 2017_\nWhen you’re trying to pay off credit card debt a high interest rates can make it near impossible. That’s the beauty of a balance transfer —  you may be able to qualify for an interest rate of as little as zero percent on the transferred amount. Be forewarned, this dream scenario can turn into a nightmare if you haven’t first done your homework on the different types of credit card offers available.\nDo you qualify for an interest rate lower than your current one?\n----------------------------------------------------------------\nWe’re not talking here about the introductory offer. Obviously, the only reason to transfer a credit card balance is if the interest rate will be lower on the transferred amount than the one you have already. But that’s only for a limited time and _only on the balance you transfer_. That doesn’t apply to new transactions made on the card or transactions made after the introductory period has expired.\nIs the amount you’ll save on interest rates higher than the balance transfer fees?\n----------------------------------------------------------------------------------\nDo the math. How much will the new credit card issuer charge you in annual fees and transfer fees? Compare that to how much you’ll save on interest rates before the transferred amount is paid off.\nCan you pay off the transferred balance before the introductory interest rate expires?\n--------------------------------------------------------------------------------------\nThis one is key. Introductory interest rate offers may last anywhere from 6 to 18 months. If you do not pay off the entire balance within that time frame, you’ll be charged your regular interest rate on the remaining amount from that point forward.\nCan make every monthly payment on time?\n---------------------------------------\nMake one late payment, and the terms of your introductory interest rate are likely null-and-void. Should this happen, expect the regular interest rate to kick in on any balance you have remaining on the card at the time of your late payment.\nCan resist putting new charges on the new card?\n-----------------------------------------------\nAgain, the introductory interest rate for a balance transfer only applies to the transferred amount. If you make new charges to the card, expect the regular interest rate to kick in on those transactions.\nHave you researched multiple credit card offers?\n------------------------------------------------\nThe one you got in the mail probably isn’t the best deal. Shop around for the best credit card offer, carefully read the fine print, comparing:\n*   Introductory interest rate.\n*   Length of the introductory offer.\n*   Regular interest rate.\n**Other Tips**\n--------------\n*   Only apply for credit cards geared toward your credit score range. This will increase the chances of approval and minimize the need to apply for multiple cards, as that does negatively affect your credit score.\n*   If you have multiple credit card balances, you may be able to transfer two or more to one new card.\n*   If you cannot find one credit card that will transfer the entire amount of your balance, you may be able to split the balance in two. Just be sure to do the math first, as you’ll then be facing double the annual and transfer fees for moving the balance from one credit card to two.\n*   If, despite your best efforts, you find yourself unable to pay off the balance before the introductory interest rate expires, start shopping around for a new balance transfer offer. END
 TITLE: FICO and VantageScore - Fair Isaac vs VantageScore System CONTENT: FICO vs VantageScore — Which One is Better?\n-------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nWay back in 2006, the three national credit reporting agencies, Equifax, Experian, and TransUnion, jointly announced the creation and availability of VantageScore, a new credit scoring model. This model has since been independently marketed and sold through each of the three credit reporting agencies via a licensing agreement with VantageScore Solutions, LLC, a company the agencies established.\nBefore VantageScore, There Was FICO\n-----------------------------------\nWith the popularity of credit cards in the 1960s and the enactment of the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA) by the mid-to late 70s, lenders were looking for a way to fairly and consistently evaluate credit applicants. To their rescue came the Fair Isaac Corporation with their credit scoring model, FICO Score, that evaluated each applicant based on impartial and unprejudiced information and gave lenders a consistent way to evaluate credit risks.\nThe FICO Scoring model was released for credit agencies back in 1981. Then in 1989, they launched the first FICO score for general purpose and was and still is the industry leader for credit scoring.\nSince Experian, Equifax, and TransUnion had to pay Fair Isaac to license their proprietary FICO scoring algorithm, they decided to get together and develop their own credit scoring model. Thus, VantageScore was launched in March of 2006 with a second version unveiled in October of 2010 and then a third version was released in March of 2013.\nWho Uses FICO Scores and Who Uses VantageScores?\n------------------------------------------------\nAccording to myFICO.com, 90 percent of the largest lenders base their credit decisions on the FICO scoring method.\nEven though VantageScore has been around for a little more than 10 years, they still have failed to break into the majority of the large lending institutions. When you request a credit score from one of the three big credit bureaus, you will be getting a Vantage credit score.\nDifferences Between FICO and Vantage\n------------------------------------\nThere are many differences in these scoring models and each ones has their own unique algorithm. Having said that, the most obvious difference is what goes into your score. As you can imagine, the exact formulas for each are a well guarded secret so the following information is pretty general and can be found on each of their websites.\n#### What Goes Into Your Score\n**FICO Components**\n**VantageScore Components**\nPayment History - 35%\nPayment History - 40%\nLenght of Credit History - 15%\nUtilization - 20%\nAmount Owed - 30%\nDepth of Credit - 21%\nTypes of Credit Used - 10%\nBalances - 11%\nNew Credit - 10%\nRecent Credit - 5%\nAvailable Credit - 5%\nWhich is Better?\n----------------\nNow we come down to the million dollar question — which is better, FICO Score or VantageScore? It depends. Admittedly, the general opinion is that since VantageScore is not widely accepted, your VantageScore is not really looking at the score a lender is going use when approving you for a loan. But who knows, VantageScore has only been around for 10 years and FICO was been in use for 30 years — so maybe in the next 20 years the tables will turn. But for now, if you want to know how lenders are going to evaluate you as a credit risk, it is best to know your FICO Score because chances are that is your real credit score when it comes to your credit health. END
 TITLE: Release of FICO 9 May Boost Your Credit Score CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nWhether you’ve exhausted every possibility for cleaning up your credit, or you’re just getting started, FICO 9 was made available in Fall 2014 and could go a long way toward furthering your goal.\n### If you pay debts that are in collections, they no longer count negatively against your score.\nOne of the most frustrating aspects of the previous FICO scoring model was failure to reward consumers for paying off debts that had previously been in collections. Even though they were paid and resolved, the debts continued to count as a mark against your credit score.  That is now a thing of the past.\nUnder FICO 9, you are no longer penalized for debts in collections once you have actually paid them. That said, before you go paying off all your unpaid debts, do yourself a favor and go through the debt validation process first.\nThe more times your debt has been sold from one collector to the next, the less likely that supporting documentation has changed hands. And if the debt collector cannot prove you owe the debt, you are not legally required to pay it AND it must be removed from your credit reports.\nNote, debt validation is an especially effective tool for old credit card debt.\n### If you have unpaid medical debt, it no longer counts as negatively as other types of unpaid debt.\nIn a study of consumer credit reports over 2 years’ time, the Consumer Financial Protection Bureau (CFPB) discovered that consumers with unpaid medical debt are more creditworthy than the previous scoring model gave them credit for.\nAs stated in the CFPB’s Data Point: Medical Debt and Credit Scores:\n*   Consumers with more medical than non-medical collections had observed delinquency rates that were comparable to those of consumers with credit scores about 10 points higher.\n*   Consumers with more paid than unpaid medical collections had delinquency rates that were comparable to the rates of consumers whose credit scores were roughly 20 points higher.\nIn response, FICO 9 now considers unpaid medical debt as less important than other types of unpaid debt. In fact, if the only negative debt weighing down your credit is of the medical variety, you could see your score go up as much as 25 points.\n### If you don’t have much credit history, there’s a new technique for projecting your creditworthiness.\nIt’s unclear what this technique is, but FICO 9 evidently has a new and improved means of giving credit where credit is due regardless of your credit history.\nOn the whole, what all of this adds up to is a win-win situation for consumers and lenders alike.\nFICO boasts that more people will fall into higher score ranges, increasing the number of consumers that lenders can extend credit too.\nThat said, consumers may be harder-pressed to guard against taking on more debt than they can handle. Certainly, a higher FICO score is something to be celebrated and taken advantage of in the form of lower interest rates, but always within the larger goal of staying as debt-free as possible. END
 TITLE: Number of Credit Cards You Should Have CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 25, 2017_\nIf you're asking yourself how many credit cards you should have in your wallet, it's likely for one of two reasons:\n1.  You're thinking about getting more credit cards\n2.  You're thinking about letting some go\nLet's get number two out of the way first.\nIt is almost never a good idea to close credit card accounts. This is especially true of older accounts that are contributing to the length of your credit history. One exception would be if you cannot seem to resist grossly mismanaging your credit card debt and, in turn, making your credit scores even worse, not to mention your financial situation.\nAs for scenario number one, there is no clear-cut answer.\nNo matter how many credit cards you already have, it could very well be a good idea to apply for more of them. It's all in how your credit cards are managed.\nHaving one credit card that you manage responsibly is far more beneficial than having five credit cards that you abuse on a monthly basis.\nBottom line, there is no magic number of credit cards to give you the ideal credit score. The magic is in how you get them, how you use them, and how long you've had them.\nHow to Get a Credit Card\n------------------------\n### Don't Apply For Multiple Credit Cards at Once\nEvery time you apply for a credit card, it counts as a hard inquiry on your credit reports, which can have a negative impact on your credit scores. Obviously, this is unavoidable, and really nothing for you to worry about, provided you keep credit card applications at a minimum.\nIf a hard inquiry does affect your scores, it may be by as little as 5 points, but could have a greater impact if you have very few credit accounts or a short credit history. One or two hard inquires is nothing to worry about, but avoid racking up any more than that within a short period of time, as a flurry of credit card applications demonstrates risky behavior.\n### Apply For Credit Cards You Are Confident You'll Qualify For\nThere is never any guarantee that you will be approved for a credit card, so check to be sure that the card you're applying for is intended for borrowers with your credit score. In other words, if you have a credit score of 650, you do not want to apply for a credit card that states it's intended for those with Excellent credit. This minimizes the possibility for being turned down and, in turn, racking up more hard inquiries via subsequent applications.\nHow to Use Credit Cards\n-----------------------\n### Keep Credit Utilization Ratio Below 30 Percent\nYour credit utilization ratio is the percentage of your available credit that you use per month. As a rule, try not to utilize more than 30 percent of it. So for example, if you have $10,000 in available credit, you do not want to charge more than $3,000 a month. Your credit utilization ratio represents 30 percent of your credit score, so shooting for the ideal percentage is critical (e.g., 10 to 25 percent).\n### Charge Only As Much As You Can Afford To Pay Off Each Month\nCredit cards should be used as a tool for establishing credit, not as a source of income. Never charge more to your credit cards than you can afford to pay by the end of the month. The goal: a zero balance. This not only saves you from paying interest fees, but also eliminates the possibility that your credit card debt could get out of control.\n### Make Monthly Payments On Time\nIdeally, you're paying off the balance every month before your due date. But if you get into a situation where that's not possible, at the very least make the payment on time. Pay as much as you can or, worst-case, the minimum payment required.\nHow Long You've Had a Credit Card\n---------------------------------\n### Don't Close Old Credit Cards\nThe length of your credit history counts for 15 percent of your credit score. So even if you have an old credit card that never gets used, resist the temptation to close it, as losing this available credit will shorten your credit history. It also decreases your available credit, which negatively impacts your credit utilization ratio.\nNot sure how far back your credit goes?\nIf it's been more than a year since you've done so, get free copies of your credit reports from AnnualCreditReport.com. From there you can request copies from all three of the major credit reporting bureaus - Experian, Equifax, and TransUnion.\nMake this a yearly habit, reviewing your credit reports to ensure that all your responsible credit card management is being accurately reported, as it's these listings that determine your credit score. END
 TITLE: Increased Credit Card Debt for College Students CONTENT: College Students Can Mis-Manage Credit Cards\n--------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 24, 2017_\nAs we have touched on before here at Credit Info Center, credit card companies are more aggressive than ever when it comes to marketing cards to college students. This heavy-hitting attention to the extension of credit to college students would perhaps be less of a gross offense provided schools used this as an opportunity for financial education. On the contrary, college students as a whole remain remarkably illiterate when it comes to credit card use. They are mis-managing their credit cards by being ignorant of interest rates, late payment fees, and overbalance penalties.\nAccording to a survey conducted by the International Journal of Business and Science:\n*   Fewer than 15 percent of college students know the interest rates on their credit cards.\n*   More than 75 percent of college students are unaware of late payment fees on their credit cards.\n*   Fewer than 30 percent know the penalty for being over their credit card balance.\n*   Overall, fewer than 10 percent know their interest rates, late payment charges and overbalance penalties on their credit cards.\nHow Prevalent is Credit Card Use Among College Students\n-------------------------------------------------------\nFor the first time in history, student loan debt exceeds the nation's credit card debt. This is a double-whammy for college students graduating with tens of thousands of dollars in student loans AND what could easily amount to the same amount of debt to credit card companies. In fact, 70 percent of college students have credit cards. Thirty-four percent have the seemingly-manageable one credit card, but 36 percent of college students have two or more.\nWhat Are College Students Using Their Credit Cards For, and How Often\n---------------------------------------------------------------------\nThough college students say they do use their credit cards for books and supplies, the vast majority do not report using their cards for tuition or room-and-board. Nearly half of college students say they only use their credit cards for emergencies. It may be assumed that the other half of credit card-using students charge food, clothes, entertainment, and other living expenses. As for frequency of use, 36 percent of college students use their cards fewer than five times per month, while 13 percent say they use their cards \"frequently.\"\nHabits of College Students on Their Credit Card Payments\n--------------------------------------------------------\nOnly a little more than 9 percent of college students say they pay off the balance on their credit cards each month. This spells trouble, as the vast majority of students don't know their interest rates and, in turn, don't know how much debt they are accumulating by carrying a balance from month-to-month.\nDo Demographics Make a Difference When it Comes to College Student Credit Card Use?\n-----------------------------------------------------------------------------------\nThere does seem to be some correlation between credit card literacy and the age, employment, and marital status of students. Younger students use their credit cards more often than older students. And students who are employed and\/or married exhibit greater financial literacy than their unemployed, single counterparts. Gender and degree major seem to make no difference.\nBottom line, ignorance contributes to the mis-management of credit cards among college students. Clearly credit card companies and schools of higher learning aren't going out of their way to help students master the ins-and-outs of smart credit card use. This seemingly leaves it up to parents to take the initiative to share their knowledge and experience with their college-bound kids. END
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 TITLE: Changes to FICO Score - Fair Isaac's Credit Scoring Model CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nFICO, which began as Fair Isaac and Company, was founded by engineer Bill Fair and mathematician Earl Isaac in 1956 to help department stores and gas stations decide when to extend in-house credit cards to customers. They sold their first credit scoring system two years later and then in 1967 FICO became a publicly traded company. The company was renamed in 2003 to Fair Isaac Corporation and then in 2009, rebranded itself as FICO. But what really is a FICO Score and how has it evolved since 1956? Let's take a look.\nWhat is a FICO Score?\n---------------------\nSince the creation of the first credit scoring model, FICO has become the benchmark of credit scoring used and copied by hundreds of other companies trying to break into the credit scoring market. FICO itself does offer many different types of scores that are customized for different industries, such as mortgages, auto loans, insurance, but they all use basically the same information to come up with a three digit score. This score is a number assigned to a consumer that attempts to summarize whether that person is worthy of receiving credit. Mortgage lenders, credit card issuers, car dealers and other lending businesses rely on credit scores to decide whether to extend credit, and if so, how much to charge in the form of interest.\nThe information used to come up with a FICO score is as follows:\n*   Consumers' history of paying their debts on time.\n*   How much of their available credit have they used.\n*   How many different types of credit are they using.\n*   Do they have a history of unpaid debts.\nUsing all of this information, the mathematical algorithm spits out a number, between 300 and 850, which predicts whether or not a person will pay their debts in the future. The higher the score, the more likely they are to pay their debts and they are considered to be a \"low risk\" borrower. The lower the score, the more likely they are to default on their loans, pay their debts late, or file bankruptcy, and these people are considered to be a \"high risk\" borrower.\nChanges in FICO Over the Years\n------------------------------\nSince it's first release, there have been minor updates to the FICO score algorithm every two to three years just to keep up with the changing economic environment and consumer behaviors. It was not until early 2009 that FICO released FICO 8 which, according to FICO spokesman Jason Sprenger, \"allowed FICO scientists for the first time to break the blueprint of our original FICO scoring algorithm and create a segmentation that rendered significantly more predictive credit scores than was possible before.\"\nSo, what prompted this radical overhaul of the classic FICO scoring model? The financial crash of 2008 prompted many consumers to drastically reduce their credit card debt which in turn affected the overall average credit utilization ratios. Also, studies found that a lot of people had medical debts that were erroneous which caused late payments and collections to appear more frequently in credit files.\nFICO 8 — What Has Changed?\n--------------------------\nA demand by users for a better way of analyzing risk in the wake of rising mortgage defaults and consumer credit delinquencies was the catalyst for Fair Isaac Company to release FICO 8. Here are just some of the improvements:\n*   A moderate level of credit inquiries will be less detrimental.\n*   High balances on existing credit cards may hurt your score more than before.\n*   Authorized user loopholes will not be allowed.\n*   Actively utilizing existing credit accounts will increase in importance.\n*   A combination of installment and revolving credit accounts will be optimal.\n*   The new model divides consumers into 16 categories, not the 10 as in the previous version, thus helping lenders fine-tune credit decisions.\n*   FICO 8 goes easier on people who have missed payments on small debts under $100, which are often erroneous medical debts.\n### Is FICO 8 Being Used by All Lenders?\nSince it's release in early 2009, the answer to that question is \"no.\" As one journalist put it; \"Big ships don't spin on a dime.\" Large banks and lenders have not embraced the new scoring model due to the enormous cost of implementing a new program into their lending practices. In the case of Freddie Mac and Fannie Mae, the largest user of FICO scores, they have bigger fish to fry in the wake of the real estate bubble bursting. They are just trying to stay afloat and have no budget or desire to implement the new scoring model at this time.\nFICO did issue a press release back in June of 2011 touting the fact Citibank had implemented the new scoring model. Having made such a big deal about this makes one scratch their head and wonder, \"is this the only bank to have made the switch?\"  What happened to Chase, Bank of America and Wells Fargo? According to a spokeswoman for Bank of America; \"We're in the process of implementing the new scoring model but I wouldn't have any more details to share.\" Wow — talk about vague!\n### Future of FICO 8\nIf FICO 8 can help millions of people with small delinquencies improve their credit and help lenders make better decisions, it is a shame it has not been more widely implemented as of yet. The mortgage industry is still reeling from the real estate market bust and a lot of lenders simply feel that if the scoring model is not broken, why fix it.\nEven though implementation of FICO 8 is going very slowly — we are now going on 8 years since the release — more and more lenders are starting to adapt it. But will it really make that big of a difference to consumers? That is still yet to be seen. Until the scoring model is used and accepted in the mortgage industry, it's impact will be pretty nonexistent.\nIn the meantime, consumers need to concentrate on cleaning up their credit, paying their bills on time, and getting out of debt. That way, no matter what scoring model is being used their scores will be higher. END
 TITLE: Checkout Fees for Credit Cards May Affect You CONTENT: Checkout Fee for Credit Card Payments \n--------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 17, 2017_\nIn what on the surface looked like a victory for merchants, allowing them to pass onto customers the processing fee being charged by banks every time we swipe our Visa and MasterCard credit cards at checkout.\nThat said, the law did little to significantly help merchants. In fact, it hurt those who chose to use the surcharge, as it was optional. In other words, customers who know to expect a credit card checkout fee from ABC merchant may choose to do business with XYZ merchant instead. The checkout fee could impact you so it's important to know what to expect, and why.\nWhat is a Checkout Fee?\n-----------------------\nA checkout fee is a surcharge that merchants can now legally charge customers who choose to pay using a credit card.\nWhat Gives Merchants the Right to Charge a Checkout Fee?\n--------------------------------------------------------\nIn July 2012, Visa and MasterCard reached a $7.2 billion settlement in which merchants were allowed to offset the cost of credit card processing fees (the fee charged merchants every time we swipe at the register) with a surcharge, or \"checkout fee,\" essentially passing the cost onto their customers.\nWhen Did the Checkout Fee Go Into Effect?\n-----------------------------------------\nJanuary 27, 2013\nHow Much is the Checkout Fee?\n-----------------------------\nIt varies, with merchants free to charge between 1.5 to 4 percent of your transaction. However, the amount charged cannot exceed the amount the merchant pays for processing the credit card payment.\nAre Merchants Required to Charge a Checkout Fee?\n------------------------------------------------\nNo, charging the checkout fee is optional.\nWill Most Merchants be Charging the Checkout Fee For Credit Card Transactions?\n------------------------------------------------------------------------------\nProbably not. Though they all have the right to do so, charging a surcharge for credit card use is not attractive to customers, for obvious reasons. Stores that bill themselves as having the best deals in town will probably opt out of the checkout fee option, like Walmart, Target and other big discount stores, as well as grocery stores.\nWhich Merchants Are Most Likely to Charge the Checkout Fee?\n-----------------------------------------------------------\nThe smaller the business, the more likely they will choose to charge a checkout fee for payment by credit card. Small mom-and-pops have a hard enough time making ends meet. The checkout fee helps them offset the cost of processing fees charged to them by the credit card companies every time we swipe our cards at their registers. Service providers may also be among those most likely to take advantage of the surcharge, such as your hairdresser or your dry cleaners.\nAre All Cards Subject to the Checkout Fee?\n------------------------------------------\nNo, American Express customers cannot be charged a checkout fee. Debit cards from all issuers are also exempt. The only cards subject to the surcharge are credit cards issued by Visa and MasterCard.\nHow Will I Know if I am Being Charged the Checkout Fee?\n-------------------------------------------------------\nAll merchants who plan to charge the checkout fee are required to post it plainly at checkout, or in their online store. If you are not paying at a traditional \"checkout\" or online, then the merchant should be legally obligated to otherwise notify you of the surcharge.\nIs the Checkout Fee Nationwide?\n-------------------------------\nNo, there are states where no surcharge law protect consumers and prohibit merchants from charging the checkout fee to customers who use their credit cards. You need not worry about the surcharge in California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, Oklahoma, Texas, and Utah. END
 TITLE: No Credit Score - New Credit Scoring Model CONTENT: New Scoring Model Aimed at Those With No Credit Score\n-----------------------------------------------------\n###### Written by: Kristy Welsh\nGetting a loan, credit card, or even a cell phone is predicated on your credit score. It seems that your entire life revolves around that magical 3-digit score. But what if you don't have a credit score? According to a recent survey, over 60 million people do not have a credit score, which means these people can not take advantage of using and applying for lines of credit. Scoring companies see this trend and are feeling the need to adjust the way they evaluate these types of consumers. If you are person who does not have a credit score, read on to find out more about this new credit scoring model and if it will help you.\nIntroducing CreditVision Link\n-----------------------------\nCredit reporting agency giant, TransUnion, recently announced a new credit scoring model that is says will score 95 percent of the adult population with as little as a consumer's address and their checking account information. This new scoring model, called _CreditVision Link_, it the latest using what the industry calls \"alternative data\" information which is not factored into traditional scores, such as FICO. Using this type of data, CreditVision Link is able to give risk scores to 60 million people who do not have a credit score using the traditional scoring models.\nHow CreditVision Link Works\n---------------------------\nCreditVision Link analyzes a person's personal information and financial accounts. To be scored, you must have a verifiable address and one trade line. The trade line can be a checking account or something as simple as a magazine subscription. The following items are also evaluated to come up with your score:\n*   Tax and deed records\n*   Checking and debit accounts\n*   PayDay loans\n*   Furniture rental payments\n*   Address changes\nTransUnion found that by looking at these alternative items, consumers who would have been categorized as sub-prime borrowers could now be classified as prime borrowers. Thus improving their access to credit and better interest rates.\nAs far as checking account behavior, CreditVision Link gives weight to someone who does not bounce checks and has not had an account closed by their financial institution. Changes in addresses is also evaluated. People who do not move frequently (more than once a year) are seen as better credit risks. These are both areas not looked at by FICO or other traditional scoring models used by lenders.\nWho is Using CreditVision Link \n-------------------------------\nAs with any new scoring model, the million dollar question is who is using this to evaluate credit worthiness? TransUnion would not disclose the names of creditors with which it tested the model but said its target is large-scale lenders that already have sophisticated systems in place. CreditVision Link would be used to supplement their processes with the aim of expanding their lending portfolio to those traditionally un-scoreable consumers.\nAs stated by TransUnion's senior vice president of alternative data services Mike Mondelli, \"CreditVision Link is intended to be a supplement to traditional scoring models, not a replacement.\" Consumers can request their CreditVision Link alternative data report, but the score itself isn’t available for purchase.\nThere are a lot of credit scores out there, and you never know which one your creditors might use to review you, so it helps to check your scores regularly to get an idea of where your credit stands. You can get your free credit reports once a year from AnnualCreditReport.com or you can check out our list of recommended credit report companies. If you are one of the millions who do not have a credit score, CreditVision Link can help you apply and get approved for credit.\nHaving said that, our advice is for you to start to build up your credit and establish a credit score. Our site is loaded with information on just how to do that with hundreds of informative articles. Might we also suggest visiting our discussion boards where you can get excellent advice for free. END
 TITLE: CFPB Online Credit Card Complaint Database CONTENT: How to Find Credit Card Complaints On-Line\n------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 25, 2017_\nThe Consumer Financial Protection Bureau (CFPB) offers an on-line database where consumers can search for complaints against credit card companies. This new database can be searched via name of credit card company, type of complaint, or by a customer's zip code. Having their dirty laundry aired out for all to see does not make the banking institutions very happy and the banks are claiming this data can be misleading and only represents a small fraction of the credit card accounts currently issued.\nWhat Does This Database Reveal?\n-------------------------------\nEven though banks contend the information found in this database is not being verified for accuracy, the information does shows what type of complaint was filed, against who, and what was the outcome of the complaint. Did the bank resolve it in a timely manner - within 60 days - and was there any monetary relief awarded to the consumer.\nWhen the CFPB receives a complaint from a consumer, it verifies this information with the credit card company and with the person who filed the complaint. The agency also checks that is has jurisdiction over the institution in question. Once this has been all verified, it will then post this information to this online database.\nHave There Been Complaints Since the Online Database Went Live?\n---------------------------------------------------------------\nSince the CFPB began receiving complaints on July 21, 2011, it has received almost 17,000 credit card complaints, 19,000 mortgage complaints, 6,500 bank products and services complaints, and over 1,000 student loan complaints. The majority of the credit card complaints have to do with billing disputes. The second highest source of complaints come from consumers not being able to challenge inaccuracies on their billing statements.\nWhat Does This Database Mean for Consumers\n------------------------------------------\nNo longer will consumer complaints only be known to the individual banks and to those willing to pursue this information through the Freedom of Information Act. Instead, this data-rich resource will be available to everyone thus improving the \"transparency\" and \"efficiency\" of the credit card market to further empower the American consumer.\nThis database will not include personal information such as a consumer's name, credit card number, or mailing address. It will simply name the institution of which the complaint has been made, what was the complaint, and how it was resolved.\nWhat Happens When a Consumer Files a Complaint?\n-----------------------------------------------\nWhen a consumer files a complaint, Consumer Response intake specialists review each one for completeness, jurisdiction, and non-duplication. Complaints that meet these criteria are then forwarded to the appropriate company (bank or nonbank) for review and resolution. Companies are given 15 days to provide a substantive response to each consumer complaint, and are expected to resolve and close all but the most complicated complaints within 60 days.\nConsumer Response prioritizes for investigation certain complaints based on a handful of risk-based criteria including the failure of a company to respond in a timely manner and those in which the consumer disputes the company-provided resolution. When potential legal violations are detected, Consumer Response works closely with other parts of the Bureau including the offices of Supervision, Enforcement, and Fair Lending to ensure potential violations are dealt with appropriately.\nThroughout this process, consumers have the ability to log into the CFPB's website to check the status of their complaint (and, when appropriate, dispute the resolution provided by the financial institution).\nHow is This Database Working Out?\n---------------------------------\nThe Consumer Complaint Database has collected over 579,000 complaints since its inception, on a range of consumer financial products and services. Since they started accepting complaints in July 2011, they’ve helped consumers connect with financial companies to understand issues with their mortgages, fix errors on their credit reports, stop unlawful calls from debt collectors, and get direct responses about problems with their credit cards, bank accounts, private student loans, and more. They analyze the data to identify trends and problems in the marketplace, enforcing federal consumer financial laws and writing rules and regulations. They publish reports on complaints and share information with state and federal agencies.\nTell Them What You Think\n------------------------\nThe CFPB is encouraging consumers to give them feedback on what you think of this new database and would like comments and suggestions on making the functionality better. If you have a had a chance to look it over, you can fill out a comment form and offer your suggestions. END
 TITLE: Is Credit Card Reform Helping Credit Card Holders? CONTENT: Credit Card Reform Act of 2009 - Is It Working?\n-----------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 24, 2017_\nSince the enactment of the Credit Card Act of 2009 back in February of 2010, are credit card holders really better off? Studies show confusion still lingers and questions still abound regarding terms of the card deals, how cards are marketed, billed, and regulated in the United States. Gone are the surprise interest-rate hikes, shifting due dates for monthly payments and sky-high fees for minor infractions.\nCredit Card Industry Survey\n---------------------------\nDuring a conference in Washington, D.C., the Consumer Financial Protection Bureau says the law is working and they released the results of the first government analysis of the CARD Act's impact. According to Elizabeth Warren, the bureau's acting director at that time, \"One year after the CARD Act took effect, we think it is appropriate to ask whether it has had its intended effects and how the credit card marketplace has changed.\" The conference, called \"The CARD Act: One Year Later\", focused on what has changed since the law took effect, what those changes mean for consumers, credit card issuers and the market, and what still needs to be done to improve consumers' ability to compare credit card products and fully understand their terms.\nThe CFPB conducted voluntary surveys of the nine largest credit card issuers, representing 90 percent of the credit cards issued in the United States. The Office of the Comptroller of the Currency also conducted surveys of credit card pricing practices and the bureau polled consumers about their experiences since the new regulations took effect. Among the findings released in the fact sheet:\n*   Surprise interest rate hikes on existing credit card balances have been significantly curtailed, from 15 to just 2 percent today.\n*   Late fees have been substantially reduced.\n*   Over-limit fees, once common in the industry, have virtually disappeared.\n*   Consumers say their credit card costs are clearer but terms are still confusing.\nWhat Do the Banks Think About the Reform?\n-----------------------------------------\nBankers say the law is beneficial to consumers but those benefits come with a cost. The day before the bureau's credit card conference, Bank of America, the second-largest issuer of credit cards, made clear the act's cost. The bank issued a statement saying that its credit card division's bottom line was affected by the CARD Act regulations, and that it had to adjust its 2009 financial statements to reflect a $20.3 billion write-down due to \"deteriorating credit quality and the adverse impact from The CARD Act on Bank of America's credit card operations.\"\nHowever, Warren also noted that the year saw some card issuers focusing their efforts on skirting the new card law by finding loopholes or creating new services that weren't specifically banned by the law. \"As soon as the CARD Act became law, it seems that some industry lawyers were asked to find slightly different ways to accomplish that which the legislation was intended to outlaw. To its credit, the Federal Reserve Board responded with a rule-making proceeding designed to close the loopholes.\" Warren said that continually writing new rules to cover every potential industry practice was costly for consumers and the industry, especially small banks and credit unions.\nThe Costs of the CARD Act\n-------------------------\nSo, to get a true reading on the impact of this law, it was necessary to go back to late 2008 for a look at how things were before the CARD Act started to change things. To do this, CardRatings.com compared terms on roughly 500 credit card offers from late 2008 and late 2011, and found the following impacts that may be attributed to the CARD Act:\n*   **Higher Interest Rates.** From the end of 2008 to 2011, the prime bank rate was unchanged but credit card rates rose by an average of 2.1 percent. Based on roughly $600 billion in outstanding U.S. debt, a 2.1 percent increase translates to an annual consumer cost of $16.8 billion.\n*   **Heavier Burden on Customers with Poor Credit.** The CARD act was suppose to protect consumers with credit problems. But instead of lowering the interest rates on subprime cards, the market actually saw an increase of 3.4 percent from 2008 to 2011.\n*   **Ballooning Balance Transfer Fees.** Balance transfer fees also have risen over the past five years from 2.1 to 3.3 percent - costing consumers an additional $120 on a $10,000 balance transfer.\nBenefits of the CARD Act\n------------------------\nWe don't want to focus entirely on the negative aspects of this new credit card reform act. There have been some benefits as well:\n*   Fewer Late Fees\n*   Fewer Over-the-Limit Fees\n*   Lower Over-the-Limit Fees\nAt this point, it is impossible to tell how much the lower fees in some areas are counteracted by higher fees in others as a result of the CARD Act, but the 800-pound gorilla is the $16.8 billion added annual cost due to higher interest rates. But, one thing the CARD Act has done is shift the way the cost burden is distributed among cardholders. By protecting cardholders who are late with payments or have credit problems, the CARD Act seems to have caused cardholders to pay higher interest rates.\nThe consistent theme is that when regulators micromanage the banking business to benefit certain customers, the outcome seems to be higher costs for everyone. END
 TITLE: Is Credit Card Reform Helping Credit Card Holders? CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
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 TITLE: Increased Debit Cards Fees Paid by Merchants CONTENT: Debit Card Fees — New Tide in Merchant Fees\n-------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 25, 2017_\nUsing a debit card to pay for groceries or gas has become a way of life for most Americans. A debit card, also known as a bank card or check card, provides the cardholder electronic access to his or her bank account and is an easy alternative to paying for things with cash. The use of debit cards is so widespread that you rarely ever see anyone writing a check at the check out counter. But this convenience does come at a price.\nStatistics on Debit Card Use\n----------------------------\nAccording to a recent study released by the Census Bureau, it is estimated that there were roughly 52 million debit card swipes in 2014 with an estimated 191 million card holders. Some other debit card statistics:\n*   Nearly 80 percent of consumers under 30 years old use a debit card compared to 43 percent of consumers over 60 years of age.\n*   In 2014, total purchases using a debit card was over $2 TRILLION.\n*   Debit card usage grew 23 percent from 2012 to 2014.\nDebit Card Fees Charged to Merchants\n------------------------------------\nThough the average consumer is vaguely aware of this, merchants pay a fee when a consumer uses a debt or credit card. At one point in time, the average fee was 33 cents for a signature transaction and 26 cents for a PIN transaction. These fees were paid by the merchant to the bank or credit card company that issued that particular debit card. So of course, this fee is passed along to the consumer in the way of higher prices for goods and services.\nRecently, in response to a declining economy, the government made some changes designed to help the small business owner lessen their cost of doing business and give the owner more money to use to hire workers.\nChanges to Debit Card Swipe Fees\n--------------------------------\nIn response to the recession of 2008, President Obama signed into law the \"Dodd-Frank Wall Street Reform and Consumer Protection Act\" on July 12, 2010. Contained in this act is language which would put a cap on the fees banks and credit card companies can charge on debit card swipes. After much debate and stonewalling, the Senate finally voted in favor of the Federal Reserve caping the fees that stores must pay banks each time a customer swipes a debit card to 12 cents per swipe.\nWhat Does Caping the Fees Mean to Merchants?\n--------------------------------------------\nPutting a cap on swipe fees at 12 cents, means more money in the long run for merchants. Take for example an owner of a 7-11 store in Quincey, MA who now pays $7,000 to $10,000 annually in swipe fees. This amount will be cut down to $2,000 to $5,000 a year. That is a tremendous savings for a business owner which could equate to higher salaries, new employee hires, and cheaper prices.\nWhat Does Caping the Fees Mean to Banks?\n----------------------------------------\nSuffice it to say, the banking industry was pulling out all the stops prior to this Senate vote. Lobbyists were in full force working both sides of the isle trying to convince them to vote against this measure. Why? Because this fee cut stands to loose them billions of dollars annually! Currently, banks make about $16.9 BILLION a year in fees. Under this new law, banks stand to **LOSE** $12 BILLION a year - do you feel bad for them? \nPossible Response to the Fee Cuts\n---------------------------------\nSure, the merchants will save money by paying less in swipe fees, but now what are the banks going to do to make up for this loss in revenue? Don't think they are just going to say, \"Oh well, I guess we can do without that extra income.\" Fat chance of that happening! The banks are already skeeming on how they can recoup this loss and who they are going to hit up for it.\nAnd of course, it comes right back down to the consumer. Prior to the Senate vote, the banking industry was claiming they are going to have to make up for this loss in revenue by charging more for checking accounts, savings accounts, and in general, hiking up their already inflated banking fees. So basically, will the consumer actually win at all? They may pay less for that pack of gum, but then they will have to pay more to have a checking or savings account. END
 TITLE: Using Insurance Credit Score for Underwriting and Rates CONTENT: Do You Know Your Insurance Credit Score?\n----------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nIf there weren't already hundreds of credit scoring models, your insurance credit score is another alternative credit score being used to evaluate your credit history. Insurance credit scores are used by insurance companies to determine the risk of issuing you some sort of insurance policy. An insurance credit score is similar to a credit score, wherein it is based on the same credit report information, but it is just calculated differently and there are separate scores for auto and property insurance. This score is used to determine your rates and detect possible claims fraud.\nGeneric Insurance Credit Scores\n-------------------------------\nThere are two primary types of insurance scores, generic and custom. FICO and LexisNexis have built the most commonly used generic insurance scoring models available to consumers and insurance companies. The score is based on the Equifax credit report and there are two scores: _Attract Home Insurance Score_ and _Attract Auto Insurance Score_.\nTransUnion also developed a generic insurance score called the _TransUnion Insurance Risk Score_ which uses the TransUnion credit report. There are two versions available: _Home Score_ and _Auto Score_. These are available to both consumers and insurance companies to see.\nThere are also generic insurance scores not available to consumers but only to the insurance industry. These are _InScore_, which is an Experian version, _FICO Insurance Score_, and a _FICO Insurance Risk Score_.\nCustom Insurance Credit Scores\n------------------------------\nCustom insurance scores are developed by insurance companies by a third party using the insurance company's data and developed solely for their use. These scores are more predictive for the individual company since it is tailored for them. Most of the large insurance companies develop their own custom scores.\nInsurance Credit Scores — Are They Legal?\n-----------------------------------------\nMany states prohibit the use of your credit report by the insurance industry for setting rates or fees. The changes in this arena are constant so it is best if you check the statutes in your state to see if your state allows this or not. When FICO first rolled out their insurance score algorithm, everyone was on board. As the years have gone by, more and more lawsuits have been brought against insurers and more and more insurers dropped the use of this score to determine rates and whether or not they would issue someone a policy.\nWhere allowed by law, insurance companies can use your credit report to calculate your insurance score when you apply for insurance. They will check your credit every time you apply for say, life insurance, and they may check it again every time your policy is up for renewal. The people who look at your insurance score can be:\n*   an insurance broker,\n*   an insurance underwriter,\n*   and you.\nMany states now restrict how your credit report is used, and therefore your insurance score, can be used in the underwriting and rate-making process. In addition, many states require insurers to notify you when they obtain your credit report.\nDo Insurance Scores Work?\n-------------------------\nAccording to a lot of the bean counters, your credit report data can predict whether or not you will file a claim on your auto or property insurance policy. They contend that if you are careless in the handling of your finances, you may be the same way with the way your drive your car, take care of your home, or take care of your health. Regardless of why it is predictive, it has been proven to be, in fact, predictive.\nThe use of insurance scores to determine rates and whether or not to issue you an insurance policy, has been an ongoing battle between consumer groups, politician and the insurance industry. The Federal Trade Commission (FTC) filed a report titled, \"Credit-Based Insurance Scores: Impacts on Consumers of Automobile Insurance.\" The results of their study were that credit-based insurance scores were in fact effective predictors of risk in insurance policies, and were predictive of the number of claims a consumer would file. Bottom line, the FTC felt using insurance credit scores would assist the insurance companies in making decisions faster and cheaper thus passing this savings on to its customers.\nMost state legislatures feel credit should not be tied to insurance rates, fees, underwriting or issuing policies. Some states in fact restrict the using credit reports as the sole tool to assess risk and whether or not an insurer can deny someone an insurance policy.\nWe are sure this debate will go on for years to come. Your best bet is to make sure your credit report is in good shape and check your state's statutes to see if they allow insurance companies to pull your credit before issuing you an insurance policy. END
 TITLE: Bad Credit Causes Higher Insurance Premiums CONTENT: Having Bad Credit Can Increase the Cost of Insurance \n-----------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nHaving bad credit not only makes applying for a credit card difficult, it may also increase your insurance premiums. Having a low credit score shows lenders and insurance companies that you have a habit of defaulting on payments or you have bad spending habits, which puts them at risk. Because of this risk you may be penalized by having to pay higher than normal interest rates or you may be denied financing altogether. This is no different when obtaining insurance quotes. Automobile insurance, homeowners insurance, and life Insurance quotes are all affected by bad credit and low credit scores.\nAutomobile Insurance \n---------------------\nA bad credit score won't just increase the cost of your car loan, it will probably jack up your car insurance premiums as well. More than 90 percent of insurance companies consider credit history as one of the factors when setting car insurance rates. Almost all states let insurers do this except for California, Hawaii and Massachusetts, which ban the practice. Insurers say there is a connection between credit history and the filing of claims. People who pay their bills on time, file fewer and less costly claims than those with a lot of late payments or delinquencies. Insurance companies don't consider the same credit score that lenders do, they look at a score designed specifically for them — the Insurance Score.\nNationwide, the average difference in rates between good credit and fair was 17 percent. The difference between good credit and poor credit was 67 percent. The use of credit for setting auto insurance premiums is controversial. Some consumer advocates say it unfairly penalizes people with low incomes or those who have job losses and these are the people who need cheap auto insurance the most.\nHomeowners Insurance\n--------------------\nYou are probably already paying more for homeowners insurance if your home is near the ocean or in a fire-prone forest. But something else may be driving your insurance premiums even higher — your credit score. We know lower credit scores impact mortgage rates but what most homebuyers don't know is that a low credit score may also increase the cost of homeowners insurance.\nAs millions of Americans are still rebuilding their credit, younger potential home buyers are just building their credit for the first time. The widely use FICO credit score is used by about 85 percent of home insurers; three states, however — California, Massachusetts and Maryland prohibit insurers from using credit scores in their insurance calculations.\nAccording to a recent article, a spokeswoman for State Farm Insurance was quoted as saying, \"There is an undeniable correlation between credit information and insurance risk. It is a correlation in terms of the frequency a person could have a claim and the severity of their claim.\" She went on to say that State Farm does not look at the entire credit score, but just aspects of it to determine someone's rate. She could not provide information as to what scores correlate to specific increases or decreases in insurance rates.\nLife Insurance\n--------------\nWill a life insurance company charge higher premiums if you have bad credit? The answer we have found is: it depends.\nAfter doing some research, credit is less of an issue when it comes to life insurance than it is with other types of insurance coverage. And it certainly doesn’t come close to the impact that it has when you are applying for either a job or a loan.\nExactly how bad credit will affect you getting a life insurance policy, depends on the life insurance company that you are applying to. For most, bad credit will not be an important factor. Some companies will assess a slightly higher premium, for reasons similar to why an auto insurance company might.\nThe biggest thing these companies look at is what kind of work that you do because certain occupations are considered to be more hazardous than others. If in the course of investigating your employment they learn that you are either unemployed, or have a history of spotty employment, they may pull and review your credit report as a way of getting a clearer view of your overall financial picture. While your credit quality itself is unlikely to be reason for decline, or even for an increase in premium, it will be a corroborating factor in determining your overall insurability.\nThe bottom line is if you have bad credit, getting insurance is going to cost you more. When buying a car, not only will you pay a higher interest rate but your insurance premium will be higher as well. Same holds true for buying a house. Our best advice to you is to clean up your credit first, before you buy a car, house or life insurance. That way you know you will be getting the best deal possible and not paying more for your insurance premiums. END
 TITLE: Future of Credit Card Industry CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 25, 2017_\nThe more you know about credit, the better you can use it to your advantage. While that certainly applies to the credit repair and credit rebuilding process, you can add that knowledge to the credit card industry. Here's what credit card issuers are planning relevant to credit card offers, targeted marketing, new products, and security enhancements. Besides following your purchases so they can use their marketing techniques on you, credit card companies are also trying to come up with ways to make your purchases more secure and reduce fraud. That comes at the heels of some major security breaches exploited by Target and Neiman Marcus where millions of credit card numbers were stolen. See what changes the credit card industry has in store for you and your card in the years to come.\nCredit Card Data Tracking\n-------------------------\nIt's no surprise banks have a load of information on their credit card customers. What is surprising is that they haven't already made the most of it. In the future, expect to receive targeted offers on products and services based on what credit card companies know about your interests via your spending habits.\nTargeting Mobile Devices\n------------------------\nWhat's better than knowing what you like to buy? Knowing where you are at any given time so as to offer your deals on products and services just a hop-skip-and-a-jump away. In the future, expect credit card companies to utilize location tracking to create real-time deals too good to pass up.\nSocial Media Marketing\n----------------------\nThough you may still see credit card offers in your mailbox now and then, overall, direct marketing campaigns are winding down as social media marketing takes off. If you're on Facebook, you're well aware of the ads uniquely targeted to you based on the things you \"like\" and post about on the site. Presumably, credit card offers will make the most of this and other social media marketing platforms.\nNew Products for the Unbanked and Underbanked\n---------------------------------------------\nWe warn readers all the time about the predatory lending practices of payday and title loan companies. Yet people succumb to them because they simply have no other means of acquiring credit. There are millions more who not only have no credit cards, but no checking or savings accounts either. Banks evidently feel their pain (i.e., see an untapped market ripe for profit). In the future, expect banks to offer products tailored to the needs of the unbanked and underbanked demographic.\nBudgeting Tools\n---------------\nWhen you think about the impact of using your credit card, you likely think of spending money. But, if you're a savvy credit card user, you also think of all the good your responsible credit card use is doing your credit score. Now how about adding another perk to the equation? In the future, expect credit card issuers to enhance their credit card services with tools that can help you budget better. After all, the smarter you are with your money, the easier it is to pay your credit card bills - good news for banks as the more customers they have in good standing using their cards every month, the fewer customers they have defaulting and going into collection and charge-off status.\nEMV Technology\n--------------\nEvery time you swipe your magnetic strip credit card, you run the risk of fraud. Though hidden from sight, the information on that magnetic strip can easily be seen by fraudulent credit card copying devices. This type of security risk was exposed over a busy 2013 Christmas holiday when Target and Neiman Marcus computers were hacked and millions of credit card numbers were stolen.\nAs a response to this security breach, credit cards are now being embedded with EMV chips that cannot be copied. This is already standard most of the world but has been slow-going in the U.S. Though Visa and MasterCard are pushing hard for adoption of the technology, ATM owners and vendors are resisting as the upgrade to EMV readers is an expensive one. Since October 2015, merchants in the U.S. have been required by law to have upgraded to EMV technology.\nOf course, the more things change, the more they stay the same. In the future, expect to continue to be vigilant in protecting your credit card information. END
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 TITLE: Fingertip Signatures on Credit Card Purchases CONTENT: Giving Merchants the Finger: How Fingertip Signatures Work\n----------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 22, 2017_\n\"Do you take credit cards?\" Gone are the days when you'd ask that question more out of hope than expectancy. Today, credit cards can be accepted anywhere, from storefronts, to street fairs, to garage sales. All it takes is a mobile device equipped with a card reader and touchscreen to capture fingertip signatures.\nWhat is a Fingertip Signature?\n------------------------------\nA fingertip signature is a type of electronic signature now commonly used by merchants to process credit card payments on mobile devices. The card is swiped via a card reader (like Square), then the card owner is prompted to sign their name for the purchase — with their fingertip — inside a signature box displayed on the mobile device's touchscreen.\nIs a Fingertip Signature Legally Binding?\n-----------------------------------------\nYes, the federal Electronic Signatures In Global and National Commerce (ESIGN) Act of 2000 gave electronic signatures just as much weight as those handwritten with pen and paper. The same is true on the state level, via the Uniform Electronic Transactions Act (UETA), which has been adopted by most U.S. states.\nIs it Possible for a Fingertip Signature to Verify Someone's Identity?\n----------------------------------------------------------------------\nNo, a fingertip signature of your name is not enough to prove that you are, indeed, the person whose name you're signing. But, to a certain extent, the same may be said of handwritten signatures as well.\nGranted, a handwriting expert may be able to convince a judge and jury of its authenticity, one or way or the other. But what of a merchant's deciphering of your signature? How well can they make a convincing argument — to themselves or anyone else — that the signature on the receipt doesn't match the one on the back of your credit card (i.e., proving that the person signing isn't who they say they are)? Of course, how often do merchants bother to compare the two signatures at all?\nIs There Any Security Risk Associated With Fingertip Signatures?\n----------------------------------------------------------------\nThere is likely no risk associated with sharing your signature in-and-of-itself. The more practical concern is associated with what comes before the signature — the swiping of your credit card. That said, card readers like Square encrypt the credit card data, and the mobile device does not store it in any form.\nAm I Protected From Fraudulent Purchases Made With a Fingertip Signature?\n-------------------------------------------------------------------------\nYes, you can expect the same level of protection as you would of any other fraudulent purchase made with your credit card.\nHow Could Dynamic Biometrics Advance Fingertip Signature Authentication?\n------------------------------------------------------------------------\nDynamic biometrics can be used to analyze how a fingertip signature is created. Unlike a handwritten signature, which only provides authenticators with the final product for analysis, dynamic biometrics incorporates into the analysis the act of the writing itself. The speed and direction of the strokes you use to sign your name is so unique that its forgery is a near impossibility. This technology already exists, just not yet for mainstream use via card readers on mobile devices. END
 TITLE: Secret Credit Scores - Alternative Scores Used by Lenders CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 26, 2017_\nCredit scores can predict your ability to pay back debts, but new scoring models purport to predict your behavior beyond creditworthiness. Similar to credit scores, these new scoring models are based on the assumption that past behavior can predict future risks.\nThere is big business in credit cards and knowing who is a good credit card customer and who is not is imperative to the bank looking for new customers. There are companies that furnish this information to the banking industry to drum up business. Ever wonder why you receive certain types of direct mail credit card offers? Wonder why a credit card company suddenly decreases your credit limit despite your perfect payment history? With the advent of the computer, many types of sophisticated modeling is available to the banking industry. The whole point of these models is of course, to maximize profitability.\nRevenue Score\n-------------\nYour revenue score, calculated by banks, has nothing to do with your income. The revenue score actually has to do with how much money you are expected to make for the credit card issuer. This score predicts how much money a credit card company is likely to make from a specific customer, based on past behaviors and payment history.\nYou've heard of the term \"credit card deadbeat?\" A credit card deadbeat is the insider term used by credit card company executives and refers to all of the credit card users who pay off their bill each month promptly; in doing so, such customers pay no interest and prevent the creditor from making any profit.\nThis score can lead to the ironic situation where a customer with a perfect paying history may find their credit cards cancelled or credit limits lowered. This is because the credit card companies are actually losing money on unprofitable clients.\nBehavior Scoring\n----------------\nBehavior scoring is a decision-making customer prediction tool based on customer behavior and life-style. This powerful tool plays an important role in banking, credit card, insurance, and telecommunication industries as it helps solving business issues, such as:\n*   Contractual credit loss\n*   Fraud\n*   Bankruptcy\n*   Customer attrition\n*   Account management\nWith the capability of identifying which customers will turn 'bad' in the future, scoring models can develop proactive strategy to reduce the potential loss months before the customers actually become bad. On the 'good' customer group, different sets of action can be taken to improve the profitability and retain the customers.\nResponse Model\n--------------\nResponse model helps businesses to better understand and anticipate their customer needs, behavior patterns, and value. With response model, it is possible to design, test, and implement more effective strategies for acquiring, growing and serving customers. Some of the areas that can be addressed with a response model are:\n*   Product cross-sell and up-sell\n*   Direct mailing solicitation\n*   Activation & promotion programs\nTransaction Score\n-----------------\nA transaction score is generated for each purchase you make, and is used to determine whether the transaction should be approved, or whether it might be fraudulent. This score also factors in the risk of whether or not the customer is likely to return the purchase, or whether questions concerning an online purchase will deter the completion of the purchase.\nYour transaction score is based on profile data. Some examples of this data are:\n*   Contain summaries of historical data that include prior customer transaction data.\n*   Number of times a customer returned a purchase.\n*   Whether or not the customer will complete the transaction\n*   Number of previous fraudulent transaction connected to the consumer.\n*   Probability based on the likelihood that a user customer will terminate the transaction if the user customer is presented with an online shopping cart follow-up question set.\nCollection Score\n----------------\nThere is no single credit-lending business which has no delinquent customers. The collection scoring system is based on customer's past behaviors in both non-delinquent and delinquent states, the system is able to determine which of delinquent customers has higher chance of collectibility\/recovery, who should get harsher treatment, what is the cost-effective medium to use, etc.\nThis score is beneficial to collection agencies who have large portfolios of debt. Why spend a bunch of time and money on accounts which are unlikely to be collected?\nApplication Score\n-----------------\nYour application score contains secondary information not factored into your FICO® credit score. Examples of this type of information are:\n*   Your age\n*   Where you live\n*   Your ethnicity\n*   Your profession\nBankruptcy Risk Score\n---------------------\nYour bankruptcy risk score is just what it sounds like: a measure of how likely you are to declare bankruptcy. Analysts at credit reporting agencies say advanced mathematics and data analytics are used to determine the complex score. However, they say, some variables come directly from your credit report, such as how the credit is used, how often a bill payment is late and the number of inquiries made.\nResearchers say the score typically surfaces when a consumer gives the bank permission to pull his credit report during the application process for a new loan, bank card or credit card, and during the periodic review of clients' accounts to determine whether to increase a consumer's credit limit.\nWhat goes into a bankruptcy score? Of course, developers of the model are not giving out too many details. However, there are some clues. For instance, where you live can change your bankruptcy risk score. According to Nerd Wallet, the states with the highest amount of consumers to file for bankruptcy in 2016 are:\n1.  Tennessee \n2.  Alabama\n3.  Georgia\n4.  Illinois\n5.  Mississippi\nAttrition Risk Score\n--------------------\nAn attrition-risk score measures how likely you are to close your account. Lenders use this in combination with other scores to decide whether a customer is worth retaining.\nIn addition, research has shown that retaining existing customers is more profitable than acquiring new customers due primarily to savings on acquisition costs, the higher volume of service consumption, and customer referrals. END
 TITLE: Information on New Credit Scoring Models CONTENT: New Credit Scoring Models — Lenders Using More Than FICO Score\n--------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nBeyond the FICO credit score, banks and credit card issuers are digging deeper into people's lives and using powerful new tools to see where you live, how often you switch jobs or whether or not you get paid with direct deposit to decide whether you deserve a loan or a credit card. These new credit scoring models are being developed and used by lenders to look at more of a person's credit and employment history than simply pulling up their FICO score.\nBecause of the new federal regulations a lender will have to disclose why they are denying someone credit or charging a person a higher interest rate. But, the underlying data and formulas used to determine a person's credit worthiness will still remain a mystery to the average consumer.\nDeposit Behavior Score\n----------------------\nOne of these new credit scores is called the _Deposit Behavior Score_. This tracks how people manage their money by reviewing their checking and savings accounts. The actual formula is not know, but it has been determined frequent overdrafts will drag this score down. Also, people who do not have their payroll checks direct deposited or if their account goes from $3,000 to $100 every month, their scores will be lowered accordingly.\nJob Security Score\n------------------\nScoreLogix has been marketing a _Job Security Score_ to lenders since 2008. This score attempts to gauge a person's credit worthiness based on income stability. Your score is based on hundreds of economic variables — right down to employment and income levels in specific ZIP codes.\nCredit Optics Plus\n------------------\nTransUnion unveiled a new score called _Credit Optics Plus_. This score attempts to predict risk by tracking \"stability\" factors such as changes of address, cell phone service and other personal data. The score may benefit young people or recent immigrants who may have stable incomes and employment but thin credit histories, while possibly penalizing people who move a lot because of their jobs. Lenders are still testing the score.\nOther Scoring Models\n--------------------\nIt is estimated there are more than 100 credit scoring models in circulation — most with unknown names and algorithms. With 25 percent of U.S. consumers with a FICO score of 599 or less, lenders are trying to find new ways to measure risk or simply put - determine a persons credit worthiness. Digging deeper and deeper into our lives and factoring in more than just our credit history, is what lenders are doing now to evaluate whether or not your will get that car or home loan.\nSo what can you do to make sure you are not denied that loan? Pay your bills on time and monitor the information on your credit report to make sure it is accurate. Even though there are a lot of new credit scoring models floating around, banks and lenders still use the information on your credit report as the basis of their decisions. If your report is solid, the other infractions may not seem so bad. END
 TITLE: Credit Card Billing Errors and Fraudulent Charges CONTENT: Questions and Answers On Credit Card Billing Errors\n---------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 23, 2017_\nWe all use credit cards to purchase everything from gas to groceries. Have you ever noticed how little cash we carry in our wallets these days? And that is not for a lack of it (hopefully), but the general overall convenience of paying for everything with plastic. There are people who even pay their mortgage with their credit card just to reap the rewards of frequent flyer miles.\nIn this article, we are going to deal with the mishaps you might encounter using your credit card. You might have to deal with billing errors, merchants who charge you incorrectly, someone stealing your information and using it fraudulently, or maybe you just have questions about using your credit card.\nWhat Types of Problems Can Be Disputed?\n---------------------------------------\nThe Fair Credit Billing Act and the Federal Truth in Lending Act both protect you from honest errors and outright fraud by merchants when you make the purchase through a bank issued credit card. The types of problems can be:\n*   Billing errors \n*   Being charged for goods you ordered but never received \n*   Being charged more for a good or service other than what was originally agreed upon \n*   Charged for damaged goods \n*   Charged for products that did not work as represented by the seller \n*   Charged for unsatisfactory services \n*   You notice fraudulent charges on your billing statement \nWhat If There is an Error on Your Billing Statement? \n-----------------------------------------------------\nIf you find an error on your billing statement, turn your bill over and chances are there are instructions to follow. The rules are pretty simple - If you report a problem in writing within 60 days of the billing date, the bank must investigate it and respond to you within 30 days. While they are investigating, you don't have to pay the disputed amount or any finance charges associated with that charge. If their investigation shows the item was correct, they can restore finance charges retroactively and you will have to pay them.\nSome banks try to resolve problems over the phone; others insist that you write a letter. If you decide to call, make sure you note the date and time of the call, whom you talked to, and what they promised to do. Then send a letter to them mentioning this information. If you resolve a problem by phone, but the bank doesn't follow through, the confirming letter that you sent will preserve your rights.\nWhat Recourse Do You Have if You Were Ripped-Off By a Merchant?\n---------------------------------------------------------------\nThis applies to any situation listed at the beginning of this section, except billing errors. Fortunately, the U.S. Fair Credit Billing Act gives you strong protection if you used a credit card. Because this comes up so frequently, and people are understandably emotional when they think they've been cheated. We suggest you refer to the legal language found on the back of your bill, under \"Special rule for credit card purchases.\"\nWhat Types of Purchases Qualify Under the Fair Credit Billing Act?\n------------------------------------------------------------------\nYou are protected if **all** of the following are true:\n*   The purchase was made with a credit card. (If it was a debit card, the money is already gone from your account and the bank won't get involved.)\n*   The amount charged is more than $50. (The amount in dispute could be less, for example if you bought a $90 lamp but were billed $100. The amount in dispute is $10.)\n*   You made the purchase somewhere in your home state, or within 100 miles of your mailing address. \nIf some of the above are not true, you are still protected if the credit card company owns or operates the merchant, or the credit card company mailed you the advertisement for what you bought. In that case, your purchase is covered by the rules no matter where you bought or how much you paid.\nIn addition, you MAY successfully protest charges outside of these parameters, but there is no legal requirement for the credit card company to correct the problem.\nWill the Bank Get Involved in a Dispute?\n----------------------------------------\nNo. Under the law, you must first try \"in good faith\" to resolve the problem directly with the seller.\nWhat Does \"In Good Faith\" Mean?\n-------------------------------\nResolving an issue \"in good faith\" is not defined in the law, but in practice it means that you behave like a reasonable person. The merchant is expected to act reasonably, too.\nAt a minimum, you should talk to the merchant's customer service department and send a follow-up letter. You have to allow the merchant a reasonable time to respond. What's reasonable? Depends on circumstances. Enough time for mail to go both ways, plus a couple of working days.\nActing \"in good faith\" also means that you acted promptly. Don't wait three months after the charge shows up on your bill to complain that you never got what you ordered.\nBack orders are a frequent problem. If the merchant tells you the stuff is back ordered, you have the right to cancel the order. You can tell the merchant you don't want to wait and ask for the charge to be canceled. This may not happen the same day, but it should be reasonably prompt. Wait a few days and call the bank to see if the credit has come through yet.\nHow to Deal With a Difficult Merchant\n-------------------------------------\nMost importantly, remember that the person you are talking to is probably not the person who caused the problem. Don't yell and don't sound crazy or make threats.\nPlenty of good people work for bad companies and many work for good companies that make an occasional mistake. You may be lucky and deal with one of them. If your approach is \"You dirty rotten so-and-so!\" you probably won't get anywhere. If your approach is \"There's a problem here; can you help me?\" you'll have a better chance of getting your issued resolved.\nBe prepared with specific information before you call. Have all the information such as order date, what you ordered (item number and price), when you were promised these items, your credit card number, and how much you were charged. Be clear about what you want - be it a refund, a replacement, shipment by a certain date, repair, etc. Most people respond best if you tell them clearly, calmly and reasonably what you want.\nWill the Bank Help If a Merchant Won't Settle the Disagreement?\n---------------------------------------------------------------\nYes. In fact, the law says the bank must help. Write or call the credit card issuer and ask for a chargeback. Use the same address as for billing errors and make sure you give these important facts in the letter:\n1.  Date you are writing the letter.\n2.  Your name and address, as they appear on your billing statement.\n3.  Your account number, and the statement date on the bill.\n4.  Explain your issue in detail - start with \"I am writing about a problem with (company name). The transaction date was (mm\/dd), the posting date was (mm\/dd), and the transaction amount was $(amount).\"\n5.  Explain, clearly and briefly, what's wrong.\n6.  Explain the fact you tried in good faith to resolve the problem directly with the merchant, but did not succeed. List dates you made phone calls and what was said by the merchant. Include copies of your letters to the merchant and the merchant's response, if any. (Don't overload the bank with this. You're showing that you acted in good faith; don't write a novel.)\nWhat Does the Bank Do During a Chargeback?\n------------------------------------------\nThe bank will credit your account and charge the amount back to the merchant. This must happen within one billing cycle, if you have done everything you were supposed to. If the merchant doesn't respond, the amount is gone from your bill forever.\nIf the merchant disputes the chargeback, the bank has to decide who is telling the truth. For more detailed information on chargebacks, read our article entitled A Chargeback Provides Protection From Fraudulent Credit Card Charges.\nWhat Happens to the Finance Charges on the Disputed Amount?\n-----------------------------------------------------------\nYou don't have to pay them while the bank is investigating. When the bank credits your account, they are also supposed to credit your account with any finance charges that were assessed on the disputed amount from the date of purchase. They may or may not do this without further prompting from you.\nWhat if You Paid the Bill in Full Before Noticing a Problem?\n------------------------------------------------------------\nStrictly speaking, the Fair Credit Billing Act says you may not have to pay \"the remaining amount due.\" We have found that some banks aren't quite so picky. Follow the standard procedures for disputing a charge and simply not to bring up the issue of whether you've already paid part or all of it. Odds are your bank won't raise that issue either.\nHowever, it's best to examine bills carefully before you pay them. If you question a charge on the 58th day, a month or more after you've already paid it, the bank is entitled to wonder if you're really acting \"in good faith\" as the law requires.\nHow to Avoid Problems With Unauthorized Charges\n-----------------------------------------------\nCredit card fraud has been growing every year and is a serious problem. Many banks have an entire unit devoted to just identity theft and fraud protection and prevention. In the case of unauthorized use of your credit card, the Truth in Lending Act limits the personal liability to $50. There is no time limit to report a card lost or stolen, but if you alert the issuer before someone else goes shopping with your card, you aren't on the hook for the charges.\nDebit cards don't get the same treatment. You have to report a lost or stolen debit card within two business days to limit personal liability for fraudulent charges to $50.\n**When traveling:**\n*   Don't leave your rental agreement in car where thieves can get it.\n*   Shred travel itineraries and ticket receipts issued by airlines and travel agents.\n**When at shops and restaurants:**\n*   Refuse to write address and phone number on credit slips, or credit card account numbers on checks.\n*   Don't let a clerk write your driver's license number on your check if it's the same as your Social Security number.\n**When using a calling card:**\n*   Don't use a personal identification number (PIN) that's obvious, such as a birth date, work extension, or consecutive numbers.\n*   Cover the phone with your body to prevent anyone from seeing what you dial; if you must tell an operator your account number, assume people are eavesdropping.\n**When at home:**\n*   Destroy all pre-approved credit card applications; when cleaning files, shred old statements, pay stubs, and checks.\n*   Don't give card numbers to callers who say you've won a prize.\n*   If monthly statement doesn't arrive on time, call the issuer immediately.\nHow to Handle a Claim Which Involves Goods and Services\n-------------------------------------------------------\nIf your problem concerns the quality of goods or services purchased on your credit card, the Fair Credit Billing Act gives you the right to dispute the charge and stop payment on that portion of the bill until the matter is resolved by the issuer.\nAccording to the law, the goods must have cost at least $50 and the purchase had to have been made in your home state or within 100 miles of your mailing address. END
 TITLE: Social Media Credit Scoring - The Pros and Cons CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 26, 2017_\nWhile there is no universal credit score based on your social media presence, your activity on Twitter, Facebook, LinkedIn, and other platforms absolutely influences your creditworthiness.\nThis is not to suggest that social media influences your FICO score; it does not. (Though the folks at FICO have hinted the day could come.) However, there are a number of lenders that do, indeed, rely heavily on social media signals.\nBottom line, social media credit scoring is alive and well. Weigh the pros and cons, and choose the level of participation that works for you.\nPros of Social Media Credit Scoring\n-----------------------------------\n### Alternative to Conventional Credit\nIf you have an excellent credit score, you may feel no need for other options. However, if you have a bad or limited credit history, social media credit scoring is a helpful alternative.\nThere are a number of lending websites that use a social media credit scoring model to make lending decisions, including Kabbage, Kreditech, Lenndo, Moven, and Zest Financial. Granted, your social media credit score may not be the only factor in their lending decisions, but you can be sure it weighs heavily.\n### You Have Absolute Control Over Your Social Media Profiles\nThough the listings on your credit report are determined by your credit activity, you have no direct control over what actually gets reported to credit the bureaus and what does not. Plus, while there are steps you can take to have erroneous and negative listings removed from credit reports, you have no direct control over that either.\nYour social media profiles are absolutely your domain. You have complete control over what they say, and what they don't.\nIt's your profiles that determine your social media credit score, so make sure you pay attention to what lenders want to see -- elements that speak to your character:\n*   Complete Profiles\n*   Education\n*   Job History\n*   Quality Connections and Posts\n### Authorization Required\nThe lenders who want to lend you money based on a social media credit score must receive authorization from you before they can access your accounts.\nCons of Social Media Credit Scoring\n-----------------------------------\n### Accuracy\nUnlike the credit bureaus that are required to verify information that influences your Experian, TransUnion, and Equifax credit scores, the same is not required of lenders utilizing a social media credit scoring model.\nWhy not?\nBecause the three major credit bureaus share their information with third parties. Lenders using social media credit scores do not, using them only in-house, so to speak, to make lending decisions.\nFinally, the Equal Credit Opportunity Act (ECOA) states that a lender cannot make a lending decision based on a scoring model that is not \"empirically derived \\[and\\] demonstrably and statistically sound.\" It is probably safe to say social media credit scoring has not met this criteria. However, lenders utilizing these scoring models seem to be flying under the radar because they do use other scoring models in their lending decisions as well.\n###  Concerns\nDo lenders (and employers, for the matter) go too far digging through our private lives, publicly-viewable or not?\n### Pressure to Participate\nChoosing to engage in social media is a choice, and not one that everyone wishes to make. If and when social media credit scoring goes go mainstream, it may demand your attention.\nSo, what's the verdict? Social media credit scoring— yea or nay? You decide. END
 TITLE: Alternatives to Credit Scoring Gaining in Popularity CONTENT: Credit Score Alternatives Are Gaining Ground\n--------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 25, 2017_\nAre you one of the millions of Americans who saw their credit scores plunge during the recession? The housing crisis of 2008 saw many of us locked into mortgages we couldn't afford and many people either lost their jobs or were forced to take a pay cut. Translation, a lot of bills went unpaid and many credit scores took a nosedive.\nToday, many of us are back on track. We are back to work and back to on-time payments but our credit reports still retain the negative listings that remain with us for up to seven years. This leaves creditors scrambling for alternative lending models because they are finding it difficult to qualify consumers based on credit scores alone.\nWhat Credit Scores Are Currently Being Used by Lenders?\n-------------------------------------------------------\nEach of the three major credit bureaus uses the FICO Score. This score is based on reports made to Experian, TransUnion and Equifax. Not all creditors report to all three bureaus so the bureaus' FICO scores vary. Still, it is based on the same scoring model, determined by:\n*   Consumers' history of paying their debts on time.\n*   How much of their available credit have they used.\n*   How many different types of credit are they using.\n*   Do they have a history of unpaid debts.\nOther scoring models include:\n*   Deposit Behavior Score — This score tracks how people manage their money by reviewing their checking and savings accounts.\n*   Job Security Score — This score is based on a person's credit worthiness which is based on income stability.\n*   Credit Optics Plus — This scoring model predicting risk by tracking stability factors such as changes of address, telephone lines and other personal data.\nWhat Are Some Alternative Ways of Determining Credit Worthiness?\n----------------------------------------------------------------\nInstead of relying on the quantitative credit score, lenders may be moving toward a more qualitative approach based on a combination of factors. In addition to traditional credit scores and income, lenders may also consider:\n*   Social networking\n*   Professional licenses\n*   Value of your home\n*   Criminal history\nCould the Way You Interact on FaceBook, Twitter, and Other Social Networks Affect Your Credit Worthiness?\n---------------------------------------------------------------------------------------------------------\nIt is absolutely possible. While it is by no means a mainstream approach to credit extension, lenders realize the potential for garnering invaluable information from our social media profiles. There are different variations of this lending platform, but the gist of your social networking creditworthiness may be based on what lenders can tell about:\n*   Your education.\n*   How long you have held jobs.\n*   How many connections you have.\n*   The quality of your connections.\n*   The location and seniority of your connections.\nHow to Maximize Credit Worthiness Via Alternatives to Traditional Credit Scores\n-------------------------------------------------------------------------------\nFirst and foremost, keep doing all the things that ensure a healthy FICO Score, like paying your bills on time, keeping your credit utilization ratio low, using your credit cards but paying off the balances each month.\nBeyond that, do all you can to create a healthy stable lifestyle. Secure lucrative work you like and want to keep. Consider continuing your education and\/or pursuit of professional licenses. Build a network of positive, like-minded connections via social media sites where you share the best of yourself, and encourage the best in others. END
 TITLE: Find Out if Credit Card Arbitration is Fair to Consumers CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 13, 2017_\nMandatory arbitration clauses, which essentially strip consumers of their right to go to court, are becoming commonplace, with most consumers completely unaware of their existence or implications. The information is buried in the fine print or worse, simply tacked on to credit card agreements, which most customers don't even bother to read. If you did read through your credit card terms and conditions, beyond the usual definitions of rates, late fees, annual charges, etc., you'll find some interesting things and probably learn at least one new phrase: binding or mandatory arbitration.\nWhat is Binding Arbitration?\n----------------------------\nBinding arbitration sounds intimidating, and it can be. By including a binding arbitration clause, the credit card issuer is giving notice that if the cardholder has a dispute with the company (including identity theft, fines, penalty or late fee disputes, interest rate guarantees, etc.) he or she can't sue the card issuer in court. Instead, the consumer must take the case to an arbitrator or judge.\nIn arbitration, a dispute is handled by a \"neutral\" third party, that hears both sides and makes a decision. Just about any type of dispute, whether it's between a worker and an employer, a retailer and a customer, or an insurance company and a policyholder, can be arbitrated. Attorneys agree that arbitration has its advantages. For one, it's faster. The American Bar Association estimates it takes two years for the average court case to be resolved, compared with 8.6 months for arbitration. Expediency can save thousands in legal costs.\nCritics of Arbitration\n----------------------\nConsumers may not realize they've agreed to arbitration and aren't in a position to negotiate contracts. And even if they shopped around for another credit card, all the lenders use the same mandatory arbitration language in their contracts.\nThere is also no proof that mandatory arbitration offers a fair outcome. Consumer advocates laugh out loud at the notion that it might be fair, since it's the credit card companies that select the arbitration companies. In California, the only state where arbitration outcomes have to be disclosed in detail, the results aren't encouraging, at least in the debt collection field. A Public Citizen study found that the National Arbitration Forum, a company that handled collection disputes, had ruled in favor of creditors 94 percent of the time. Does that seem like a fair outcome?\nWho Are the Arbitrators?\n------------------------\nThe majority of big business arbitration cases are handled by the National Arbitration Forum, the American Arbitration Association, and JAMS, all of which employ lengthy lists of professionals in law and other fields. The National Arbitration Forum (NAF), a for-profit company based in Minneapolis and one of the nation's largest private arbitration firms, specializes in resolving claims by banks, credit-card companies, and major retailers that contend consumers owe them money.\nAccording to an article in Business Week, the NAF, which dominates credit-card arbitration, operates a system in which it is exceedingly difficult for individuals to prevail. It goes on to state some current and former NAF arbitrators say they make decisions in haste based on scant information and rarely with debtor participation. Consumers who have been through the process complain that NAF spews baffling paperwork and fails to provide the hearings that it promises.\nRecently, the Minnesota's attorney general sued the NAF alleging the company had business ties to major collection firms and was not being the impartial arbitrator it had claimed to be. NAF agreed to stop handling consumer cases, and, in the wake of the scandal, several major credit card issuers agreed to temporarily stop enforcing the mandatory arbitration clauses in their contracts.\nCan You Avoid Mandatory Arbitration?\n------------------------------------\nSome basic guidelines you may want to consider regarding mandatory arbitration include:\n*   Educate yourself. Review your credit card terms to find out if you are currently in a binding arbitration agreement. If so, consider switching to a card that does not have such a clause.\n*   Try a credit union or smaller bank to find a credit card that doesn't require this. AARP says its cards do not require the clause.\n*   Read the correspondence you receive in the mail regarding \"changes in terms\" from your credit card companies so you are not caught off guard.\n*   If obtaining a new credit card that includes mandatory binding arbitration, sign an arbitration opt-out if one is available or strike the clause from the contract and initial the change.\n*   Reduce credit card debt as much as possible to avoid costly fees, penalties and credit disputes.\n*   Voice your disagreement and reason for switching credit cards to your bank if applicable.\nWhat if You Are Faced With Arbitration?\n---------------------------------------\nIf you are faced with a situation requiring arbitration, you may want to:\n*   Get your credit report and make sure there are no errors; address any errors immediately.\n*   Verify that your debt has not passed the statute of limitations for your state.\n*   Read and respond immediately to all correspondence you receive from an arbitration group.\n*   Research the arbitrator assigned to your case. Depending on the creditor making the claim against you, you may have the right to object. Consider striking any arbitrator who's a \"creditors' rights\" attorney.\n*   Consider hiring a lawyer. An attorney for either a court or an arbitration case may cost more than it's worth if the debt is only a few thousand dollars.\n*   Try to settle. Neither arbitration nor litigation is cheap. A debtor may have to pay thousands of dollars in attorney's fees tacked on by the creditor. So if you owe the money and the debt isn't old, negotiate with the collection agency or debt buyer. They probably bought your debt at a greatly reduced rate and may agree to a reduced payment.\nBinding mandatory arbitration clauses in credit card, employment, and insurance contracts force individuals to forfeit their right to a trial by judge or jury. Mandatory arbitration does not help ordinary people, but benefits big corporate interests like national banks and insurance companies. It is used as a means to evade accountability for any harm they cause or laws they break - laws meant to protect consumers and employees. Protect yourself! END
 TITLE: Find Out if Credit Card Arbitration is Fair to Consumers CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Watch Out For Questionable Credit Card Practices CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 27, 2017_\nAfter the economic meltdown of 2008, the government has stepped in to try to regulate and oversee the business tactics of banks, mortgage companies, credit card companies, and debt collectors. This massive overtaking by the government resulted in the passing of the \"Dodd-Frank Wall Street Reform Act,\" which then spawned the Consumer Financial Protection Bureau in July of 2011. The CFPB was formed to regulate consumer protection with regard to financial products and services offered in the United States.\nPrior to these regulations, card companies were \"loading their credit cards with tricks and traps so they can maximize income from interest rates and fees,\" according to Elizabeth Warren, a Harvard University law professor who was responsible for the formation of the CFPB.\nThe Federal Reserve Board has taken notice and requires issuers to disclose clearer information about rates and fees and 45 days (as opposed to 15 days) notice before they can lawfully raise rates. Congress has also held hearings to investigate credit card business practices, and many large credit card companies, such as American Express, have been fined for illegal tactics. American Express agreed to pay $85 million in refunds to 250,000 cardholders because of unscrupulous marketing incentives.\nExamples of Questionable Practices\n----------------------------------\nIn general, most consumers will argue that credit card disclosures are so confusing and so many penalty rates and fees may apply, it's extremely difficult to know how to avoid them. There are so many different credit cards to choose from, but only a bare minimum of the terms are likely to be reviewed by the average consumer. And, most disclosure forms are typically written in a language only a lawyer can interpret. But there are some questionable practices that you should be aware of, and by law these must be disclosed\/defined in your credit card agreement, so read your terms and conditions carefully.\n**Some Examples:**\n*   **Universal Default.**  A common but often criticized practice, this is when a credit card company raises a customer's interest rate because he or she made a late payment on another, usually unrelated bill. These card issuers may monitor credit reports for notices of late payments, and at any sign of delinquency they boost cardholder rates to the highest penalty rates. Issuers may also raise your rate if your overall debt has increased. Nearly 45 percent of banks used universal default in 2005, according to the Consumer Action advocacy group. Compounding matters, many card issuers who practice universal default also charge rates based on the \"first in, last out\" method, meaning cardholders must pay their outstanding balances in full before card issuers will drop rates back to normal levels.\n*   **Double-cycle, Two-cycle or Double Billing.**  With double-cycle billing, a card issuer calculates interest by reviewing a customer's average daily balance over two months, not just one - which causes many people to pay more than they otherwise would. For example, say you have a $500 balance, and you pay $400 by the by the due date. During the next billing cycle, your interest would be based on the entire $500 rather than the $100 you owe. According to the Government Accountability Office, it usually results in finance charges at least 50 percent higher than those calculated using a single month's balance. The two-cycle billing practice generally doesn't affect people who pay their balances off religiously each month, or borrowers that maintain a revolving balance; but can burn those who occasionally carry over a balance to bridge a gap, for instance.\n*   **Credit Line Decreases.**  Credit-card companies are required to notify you by mail if they change your credit-card terms, including reducing your credit limit, but there is no guarantee that you will receive and read that notification in time. Creditors are most likely to reduce your limit if they notice activities that suggest you may be in debt trouble, such as high credit charges, late payments, or applying for too much credit. In general, anything that could result in a credit-score decrease may also put you at risk for facing a credit-limit decrease.\nHow to Control Credit Card Costs and Questionable Billing Practices\n-------------------------------------------------------------------\n**You need to complain!** If you've been hit with a high fee because your payment was a day late, call and ask for it to be waived. If you are a customer with a good payment history there is a good chance they will agree to disregard the fee.\nBe sure to review your card terms and conditions thoroughly; if they contain many of the questionable features, switch to a more consumer friendly card. If you need to submit a complaint to the CFPB, here is more information on how to go about it.\nSupport legislation proposed by Congress or your State which would restrain some of these questionable policies and restrict\/cap fees and rates charged by card-issuers. The recently passes Credit CARD (Card Accountability, Responsibility and Disclosure) Act provides the following protection to consumers:\n*   **No Interest on Debt Paid on Time.**  Prohibit interest charges on any portion of a credit card debt which the card holder paid on time during a grace period.\n*   **No Trailing Interest.**  Prohibit added interest charges on credit card debt which the card holder paid on time and in full.\n*   **Limits on Penalty Interest.**  Prohibit interest rate hikes on a credit card account unless the card holder agrees to them at the time, and, in any event, limit penalty interest rate hikes to no more than a 7 percent increase.\n*   **Apply Interest Rate Increases Only to Future Debt.**  Require increased interest rates to apply only to future credit card debt, and not to debt incurred prior to the increase.\n*   **No Interest on Fees.**  Prohibit the charging of interest on credit card transaction fees, such as late fees and over-the-limit fees.\n*   **Restrictions on Over-Limit Fees.**  Prohibit the charging of repeated over-limit fees for a single instance of exceeding a credit card limit, and allow such fees to be charged only when a card holder's action, rather than a penalty, causes the limit to be exceeded.\n*   **Fixed Credit Limits.**  Require that card issuers must offer consumers the option of operating under a fixed credit limit that cannot be exceeded.\n*   **No Pay-to-Pay Fees.**  Prohibit charging a fee to allow a credit card holder to make a payment on a credit card debt, whether payment is by mail, telephone, electronic transfer, or otherwise.\n*   **Reasonable Currency Exchange Fees.**  Require currency exchange fees to reasonably reflect the credit card issuer's actual costs.\n*   **Prompt and Fair Crediting of Card Holder Payments.**  Require payments to be applied first to the credit card balance with the highest rate of interest, and to minimize finance charges. Prohibit late fees if the card issuer's actions caused the delay in crediting the payments.\n*   **Prime Rate Reference.**  Require interest rates linked to a \"prime rate\" to use the prime rate published by the Federal Reserve Board.\n*   **Annual Audit.**  Require the credit card issuer's primary regulator to perform annual audits to ensure compliance with credit card requirements and prohibitions.\n*   **Improved Data Collection.**  Improve existing data collection efforts related to credit card interest rates, fees, and profits.\n*   **Transition Period.**   Allow credit card issuers six months to implement the bill's provisions.\nDid Credit Card Companies Respond to the Complaints?\n----------------------------------------------------\nThe Industry's stance seems to be that it would welcome better disclosure, but it opposes curbs on it's ability to raise fees or rates or change policies.\nSeveral major credit-card companies announced some policy changes. Citi Card said it would no longer raise interest rates for customers who pay their bills on time, but make a late payment to another creditor (i.e. eliminating universal default). They also announced that they would not increase interest rates or fees on a customers credit card until the card expires and a new card is issued - unless the customer pays late, exceeds his credit limit, or pays with a bad check. If the card's interest rate is linked to the prime rate, it will change only when this moves.\nChase Bank also announced it is dropping it's two-cycle billing practices, along with easing up on some of the fees it charges customers who exceed their credit limits. END
 TITLE: Watch Out For Questionable Credit Card Practices CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Suing Your Credit Card Company CONTENT: Can You Sue Your Credit Card Company?\n-------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: June 17, 2016_\nChances are you have not read the fine print of your credit card contract because what you were really interested in is the annual percentage rate or the cash back rewards you are going to get. The contract that comes with your credit card looks like a bunch of legal mumbo-jumbo and who really understands any of it anyway? But lurking in all of that legalese is language regarding dispute resolution and arbitration clauses regarding litigation against their company. Of course they want to protect themselves and why not — you know how expensive a lawsuit can be.\nFor years, consumer advocates have claimed that binding arbitration clauses have quietly but dramatically limited a consumer's right to their day in court. Which is a sad state of affairs when we the consumer are not given our chance to sue someone for infringing on our rights. Recently, a study came out revealing this atrocity and something has been done about it.\nStudy Done by the Consumer Financial Protection Bureau\n------------------------------------------------------\nBack in March of 2015, the CFPB released a study which showed the majority of banking customers are subjected to arbitration agreements that restrict their ability to join class-action lawsuits. Three-quarters of these consumers were unaware of the agreements, and only 7 percent realized they had a clause in their agreement which restricted their ability to sue in court.\n“_Tens of millions of consumers are covered by arbitration clauses, but few know about them or understand their impact_,\" said CFPB Director Richard Cordray. “_Our study found that these arbitration clauses restrict consumer relief in disputes with financial companies by limiting class actions that provide millions of dollars in redress each year. Now that our study has been completed, we will consider what next steps are appropriate._\"\nWhat is Contained in These Arbitration Clauses?\n-----------------------------------------------\nArbitration is intended to provide dispute resolution outside the traditional court system. In recent years, many consumer contracts have included a pre-dispute arbitration clause - which means either side can generally block lawsuits, including class actions, from proceeding in court. So hence, these arbitration clauses act as a barrier to class actions in court.\nInstead, disputes are heard by an arbitration panel saving money, which in turn lowers consumers’ costs for services. But in actuality, there was no evidence found by CFPB leading them to believe these arbitration clauses were lowering prices for consumers. \nTens of millions of consumers are covered by arbitration clauses. In the credit card market, card issuers representing more than half of all credit card debt have arbitration clauses – impacting as many as 80 million consumers.\nArbitration and Consumer Confusion\n----------------------------------\nAs part of this study, the CFPB surveyed credit card consumers to see if they were aware and if they understood the arbitration agreements that were found in the credit card agreements. As stated earlier, over 75 percent of them had no idea there was an arbitration clause. As stated by one consumer advocate;\n\"_Many consumers have no idea that they have been stripped of their rights – until it is too late,\"_ said Theresa Amato, executive director of consumer advocacy organization Citizen Works. \"_It's time for the CFPB to use its power to ban these unfair forced arbitrations and class action waivers to correct the widespread problems their own research reveals.\"_\nThe Dodd-Frank financial reform bill banned arbitration clause in mortgage contracts, and this precedent lent itself to the CFPB to make rules about their use in credit card contracts. As of the writing of this article, a decision has not been made as to what the CFPB is going to do about these arbitration clauses. Hopefully in the near future, this watch-dog agency will make it harder for credit card companies to add these clauses and give back to the consumer the right to sue them. END
 TITLE: Details About the Credit Scoring Conference in 1999 CONTENT: Credit Scoring Conference - Fair Isaac Credit Score, FTC, Federal Trade Commission\n----------------------------------------------------------------------------------\n###### Written by: Kristy Welsh\nNotes From the Credit Scoring Conference\n----------------------------------------\n_FTC Building, Washington, D.C. July 22, 1999_  \n_Transcript of the FTC Credit Scoring Conference_\nBack in 1999, Kristy Welsh was able to attend the Credit Scoring Conference that was held in Washington, D.C. Below are my notes from that memorable meeting and all of the events that took place surrounding this trip. Here is the agenda. Here is her story........\n* * *\nJust my luck that the 4 days I spent in our nation's capital were some of the hottest on record. I did the D.C. thing and didn't use a car, but relied on taxis and the fabulous Metro system. The dutiful pressing I gave my only suit in the hotel lasted about 5 minutes in the _un_\\-airconditioned taxi ride I took to the FTC (Federal Trade Commission) building. (I made the driver of the next cab demonstrate that the air conditioning did in fact work before I would get in.)\nIn comparison to ultra sensitive metal detector at the Smithsonian Holocaust Museum, which went off loudly if you had a quarter in your pocket, the security check at the FTC building was a breeze. About 150 people turned up for the all-day event, with some of the people stuck in overflow conference rooms watching a live broadcast of the proceedings.\nThe basic topics covered by the panelists were as follows:\n*   The Use of Credit Scoring in the Mortgage Industry\n*   Consumer's Experiences with Credit Scores\n*   Is Credit Scoring Fair?\n*   What Information Should Consumers Receive About Credit Scoring?\n**Some of the biggest shockers revealed at this conference:**\n1\\. The Fair Isaac scoring system, because its credit scoring method is not given out to anyone, is completely uninvestigated, unregulated and unverified for accuracy, bias, or legality, as admitted by the Federal Reserve Board panelist present.\n2\\. Some credit card companies are pulling your credit report to watch your behavior with your other creditors and using that information to increase your interest rates. If you are late on one of your accounts, your credit score drops dramatically and therefore, they feel justified in jumping from say, 12 to 27% interest. Several consumers were present to whom this had actually happened.\n3\\. Age, something a consumer cannot control, is a key factor in how your credit score is calculated. The older the better, with ages 50 and above being the least risk statistically as calculated by Fair Isaac. Not only that, but the Fair Credit Act forbids denial of credit based on age. Fair Isaac has somehow gotten the FTC to give them a waiver and allow age to factor into your credit score. Actually, The three biggest factors in calculating your score, other than your payment history and major delinquencies are: Age, home ownership and length at your current address. Completely unfair to those who have not or who are unable to purchase a home and to those who move around a lot for their jobs.\n4\\. If you use a finance company for any reason, this is a negative and your score will drop. A finance company is basically anyone who is not a bank. (Examples: financing a computer or appliance from a Circuit City, Rent-to-Own companies, local private investors. Definitely unfair to people who do not have access to banks as a source of loans.)\n5\\. Fair Isaac made the unbelievable statement that passing out to a consumer his or her credit score is not beneficial. The Fair Isaac Panelist went on to say that their job is not to educate the consumer on his or her credit score _(they only create it, and don't hand out the formula, so this will work well - yeah right)_. As a matter of fact, the Fair Isaac Panelist went on to say, that they don't want to tell people how to improve their scores, because this would encourage people to \"behave differently\" and skew their model. They also claim that the one of the reasons the score is not given is because the consumer would be confused by the score and it would just be meaningless to them _(yep, we're all too stupid to understand these things)_.\n6\\. When asked a direct question about why the credit bureaus don't hand out credit scores, the informative response from Ray Crescenzo (the credit reporting agencies rep) was \"I cannot address this issue today.\" _(So why'd ya show up?)_\n7\\. The score range (all right, we finally get something concrete out of these guys) for your credit score (AKA FICO score) is 325 - 900 points.\n8\\. Fair Isaac claims to be able to tell if you live in a high minority concentration area via your zip code, but also claims that it doesn't factor in this minority factor.\n**Next Articles:**\n*   Reasons Why Credit Scoring is Unfair to Minorities and Low Income Individuals\n*   All of the Factors Used to Calculate Your Credit Score\n*   Follow up Meeting with Sen. John McCain's (R-AZ) aides and how you can vote for credit scoring reform. As a result of our meeting, and the persistence of Richard LeFavre of AAA Credit, Sen. McCain sent a letter to the FTC.\n**Notable People Who Were in Attendance:**\n*   Peter McCorkel, Senior Vice President and General Counsel, Fair Isaac\n*   Representatives from Freddie Mac and Fannie Mae, **Peter Mahoney** and **Pamela Johnson**, respectively, the two largest secondary markets for mortgages in the country.\n*   Robert Cook, Fair Lending Specialist, Federal Reserve Board\n*   Several Housing Association Representatives including, **Debby Goldberg**, Center For Community Change, **Marcia Griffin** Home Free USA and **Elisabeth Prentice**, Neighborhood Reinvestment Corporation. These organizations act to counsel mostly first time home buyers to get them credit worthy enough to purchase a home in areas targeted for revitalization. They are NOT debt counseling organizations.\n*   Margot Sanders, Managing Attorney, National Consumer Law Center. NCLC provides case assistance, legal research, and technical advocacy training in consumer and energy law for local legal assistance and private attorneys representing low-income clients, lay advocates, and community-based organizations. NCLC also teams with counsel for consumers in the courts and before legislators and government agencies. (Their web site is excellent, you should check it out!)\n*   Two representatives from the credit reporting agencies (though no one from the 3 credit bureaus themselves showed up), Ray Crescenzo, Vice President, Associated Credit Bureaus, Inc. and Richard LeFebvre, AAA American Credit Bureaus.\n**Notable Absentees**\nIncredible as it may sound, the biggest users and proponents of credit scores were not there:\n*   No one from the 3 credit bureaus (Equifax, TransUnion or Experian), which pass out your credit score right and left, was present.\n*   No one from the credit card industry, which will raise your interest rate at the drop of a hat due to your credit score, was there.\n*   While there were many representatives from various mortgage companies, no auto finance people showed up.\n_Kristy Welsh  \n_ END
 TITLE: Details About the Credit Scoring Conference in 1999 CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Pros and Cons of Credit Card Insurance CONTENT: Is Credit Card Insurance a Scam or a Necessity?\n-----------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 23, 2017_\nPayment protection, also called credit card insurance, is an added benefit to your credit cards — or is it? If you have a credit card, chances are you have been contacted by them trying to sell you on their credit card insurance. Usually this happens right after you activate your card and you are immediately transferred to a customer service rep who is trying to blurt out her sales pitch before you hang up on her.\nThe credit card calls it balance protection insurance and it is suppose to provide monetary protection if you lose your job, become disabled, you die, or you become critically ill. They say it will cost just pennies on the dollar but is it worth it?\nThere are typically four different types of credit card insurance:\n*   **Involuntary Job Loss:** This pays your monthly minimum payment for a specified period of time after you lose your job through downsizing or layoffs.\n*   **Disability:** Like above, your monthly minimum payment is covered for a specified time period upon becoming disabled and unable to work.\n*   **Critical Illness:** Similar to above.\n*   **Life or AD&D (Accidental Death & Dismemberment):** If you die, your entire credit card balance will be paid.\nThe cost may initially seem small at between $0.75 and $1.50 per $100 of outstanding credit card balance each month, but in the spirit of being frugal, is that money wisely spent?\nIs Credit Card Insurance Worth the Cost?\n----------------------------------------\nConsider the fact that with the exception of credit life protection, this insurance doesn't actually pay off your debt. It simply makes the minimum payments on your outstanding balance for the term of the contract. In fact, depending on the credit card and interest charges, you may sometimes find that the balance at the end of the contract is actually higher than when the claim occurred due to compounding interest.\nAre those minimum payments something that would cripple you financially in the event of an illness or job loss? The answer will be different for everybody — this is just food for thought.\nCredit Card Disability Insurance\n--------------------------------\nCredit disability insurance protects credit card holders who suddenly become disabled. This type of credit card insurance pays the minimum balance amount that is due on the specific credit card for any purchases that were made prior to the disability. It pays only the minimum balance due on the credit card each month for any purchases that were made prior to the disability and only for a predetermined number of months.\nCredit disability insurance does not cover any additional charges that are made once the credit card holder has become disabled. Each credit card company sets its own terms for this insurance. Credit disability insurance is designed to protect the consumer's credit rating and score so that it does not fall victim to unfortunate circumstances.\nInvoluntary Unemployment Credit Insurance\n-----------------------------------------\nInvoluntary unemployment credit insurance protects consumers who become unemployed involuntarily due to downsizing and layoffs. This type of credit card insurance pays the minimum balance amount that is due on the specific credit card for any purchases that were made prior to the unemployment and only for a predetermined number of months.\nInvoluntary unemployment credit insurance does not cover any additional charges that are made once the credit card holder has become unemployed simply because at this juncture the consumer knows of his circumstances and should act responsibly. It pays only the minimum balance due on the credit card each month relating to any purchases that were made prior to the unemployment and only for a predetermined number of months. Involuntary unemployment credit insurance is designed to protect the credit card holder's credit rating so that it does not fall victim to unfortunate circumstances.\nCredit Property Insurance\n-------------------------\nCredit property insurance is designed to protect the consumer in the event that property or merchandise purchased with the credit card in question becomes damaged beyond repair or destroyed. Typically, deductibles are not in play with this particular type of credit card insurance. Each credit card company has its own terms that apply to their credit property insurance as to the specific circumstances that must surround the destruction of the items. In some cases, the loss of the property due to theft might be covered with this type of credit card insurance.\nCredit Life Insurance\n---------------------\nCredit life insurance is designed to pay off the outstanding balance of the specific credit card in question in the event that the credit card holder dies. The payment completely wipes out the credit card debt for that specific account. The beneficiary listed on the credit life insurance policy is the credit card company. Credit life insurance is designed to protect the family of the credit card holder.\nIt is important to note that each type of insurance must be obtained separately for each individual credit card account that a consumer has. Some credit card companies offer one or more of these insurance coverages free with their credit card. However, most companies charge a monthly or annual fee in order to maintain the insurance coverage on a specific credit card account. END
 TITLE: MRS Associates - MRS Debt Collection Agency CONTENT: Who is MRS Associates?\n----------------------\n###### Written by: Kristy Welsh\n_Last Updated: May 30, 2017_\nIf MRS Associates is trying to collect a debt from you, here’s what you need to know. They are indeed, a legitimate collection agency. However, as with any other debt collector, they are required to follow debt collection laws. Dealing with debt collectors during the credit repair process can be confusing, so the more you know about MRS — and your debt collection rights — the better.\n**About MRS Associates**\n------------------------\nMRS Associates is a debt collection agency that also goes by the name MRS BPO, LLC. It was founded in 1991 by brothers Saul Freedman and Jeff Freedman, and is based in Cherry Hill, New Jersey.\n### **Industries MRS Associates Serves**\nAccording to its website, MRS provides accounts receivables management to companies in the following industries:\n*   Auto\n*   Retail\n*   Education\n*   Financial services\n*   Parking, tolls, and fines\n*   Heathcare\n*   Commercial\n*   E-commerce\n*   Technology\n*   Telecommunications\n*   Utilities\nFor MRS collections, the agency says it uses skip tracing, letters, “human interaction,” scoring, and credit reporting.\n### **MRS Associates Accreditation**\nMRS BPO, LLC is a member of ACA International, a trade group that represents collection agencies. Its mission? Contributing “to the success of its members and the positive reputation of the credit and collection industry through education, advocacy and services.”\nACA members take the Collector’s Pledge, which states:\n*   I believe every person has worth as an individual.\n*   I believe every person should be treated with dignity and respect.\n*   I will make it my personal responsibility to help consumers find ways to pay their just debts.\n*   I will be professional and ethical.\n*   I commit to honoring this pledge.\nBeyond that, MRS has an A+ letter grade from the BBB. It also has 3.68 out of 5 stars based on four customer reviews (not to be confused with customer complaints; see below). Its BBB file was opened in 2006 and it has been accredited since June 2016.\nThe MRS LinkedIn page also states the following about its customer service:\n“We’ve invested highly in our in-house MRS employee-training program which is six-weeks in duration for new agents, and it emphasizes quick response times and an excellent customer experience through rapport based customer service skills and compliance training.”\n**What to do when you hear from MRS collection agency**\n-------------------------------------------------------\n### **Debt validation**\nBefore you pay any collection agency a dime, you should request validation of the debt. If they cannot provide the necessary verification, you are not legally obligated to pay it and, if it’s listed on your credit reports, it must be corrected or removed. Here is a sample debt validation letter to send to MRS Associates, which you should send via certified mail with return receipt requested. Just be sure to do so within 30 days of receiving the initial communication from them. Until they provide the requested debt validation, they are prohibited from taking any other collection action against you.\n### **Submit a credit dispute**\nIf you see anything inaccurate about a debt that MRS says you owe, you have the right to dispute it. This applies to debts for which they have provided debt validation, as the information they are basing it on may be incorrect. Maybe the amount owed is wrong. Maybe you already paid it. Or maybe you never owed the debt in the first place. In any case, you can and should dispute it as inaccurate.\nThough the MRS collection agency offers an online dispute option, we recommend you send your dispute via certified mail with return receipt. Send your letter to:\nMRS BPO, LLC  \n1930 Olney Avenue  \nCherry Hill, New Jersey 08003\nBe sure to include supporting documentation.\n### **Disputing with the credit bureaus**\nIf you haven’t already, check with Experian, Equifax, and TransUnion to see if inaccurate MRS collections are showing up on your credit reports. If so, dispute the listing directly with the credit bureaus, too. Here is a sample credit dispute letter to send to the credit bureaus that you can tweak and send with supporting documentation.\n(You can see copies of your credit reports for free every 12 months through AnnualCreditReport.com or you can see them in all sorts of other ways through various free and paid credit monitoring services.)\n### **Complaints about MRS Associates**\nDespite its A+ rating from the BBB, as of this writing the MRS collection agency has had 83 customer complaints registered with the BBB, categorized as follows:\n*   69 complaints about billing\/collection issues\n*   14 problems with product\/service\nOf these complaints, the BBB says:\n*   27 were resolved to the satisfaction of the consumer\n*   56 were either not resolved to the satisfaction of the consumer or the BBB did not hear back from the consumer about the MRS response to the complaint\nIf you have a complaint about MRS, you too should let the BBB know about it. Just be sure to do so as a “customer complaint,” which signals to the BBB that you are seeking their involvement to help resolve the matter. The receipt and outcome of these complaints can also affect the BBB letter grade. If you leave a “customer review,” you are simply leaving feedback and not initiating any sort of BBB response.\nBut don’t stop there.\nYou can also submit a complaint to the CFPB and the FTC. And, again, if there is anything inaccurate about the debt, you should also dispute it with MRS, as well as the credit bureaus if it has appeared on your credit reports.\n### **Your debt collection rights**\nThanks to the Fair Debt Collection Practices Act, you have a long list of debt collection rights. Check out our summary of FDCPA violations so you know what’s okay for MRS Associates to do and what’s not. END
 TITLE: Learn How to Settle Your Debts with the Original Creditor CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 17, 2017_\nAn original creditor is the party with whom you originally opened an account with and with whom you owe money to. For example, when you applied for and received your credit card, there is a bank that is funding that credit card — such as Chase Bank, Wells Fargo, or Capital One Bank.\nNow, when it comes to negotiating and settling your debt, the tactics are quite different when dealing with an original creditor and a collection agency. This article is going to talk about how to deal with the original creditor and how to negotiate an outstanding debt with them.\nBefore Negotiating Your Debt, Know Who is it You Need to Deal With\n------------------------------------------------------------------\nWe explained above what is an original creditor, but how will you know if that is the party you actually need to deal with? You will know your account is still with the original creditor if all of the following are true:\n1.  You are not more than 150 days late on your payments. If you are over that time limit, chances are your account is being sold to a collection agency.\n2.  Your account has not been transferred to a collection agency. You will know this by having received a letter in the mail from the collection agency or you may be getting phone calls from a collection agency trying to collect this debt.\n3.  The original lending company is still managing your account — you can call them to verify this.\nIf any of the above points are not true, your account may have been transferred to a collection agency. Your negotiating tactics will be quite different when dealing with the collection agency as in the following ways:\n*   How you pay them\n*   If you need to get agreements in writing\n*   Contacting them\n*   Negotiating your credit rating\nHow to Negotiate With an Original Creditor\n------------------------------------------\nIf you are intimidated by the prospect of calling a creditor, you could try soliciting the help of a local consumer credit counseling service. Settling your debt is a time consuming ordeal and many people find it confusing and as a result, turn to a CCCS. But, you will most likely get a better deal, and save a lot more money, if you handle the negotiations yourself. CCCS's main goal is a worthy one, but they often do not negotiate on how the account will be reported, which could leave you debt free, but with a ruined credit report and a lower credit score than when it all started.\nIf you are panicking about how to deal with your debt, read our article on Handling Debt Stress.\n**How do you know your account is still with the original creditor?**  \nThat's easy, just call them. Unlike all of our advice on how you should never call a collection agency, calling the original creditor is just fine and is actually the best way to get things accomplished. If your account is still with them, they will start dealing with you. Otherwise, they will just refer you to the collection agency they sold your account to. As a matter of fact, they will refuse to talk to you at all if your account is in collections.\n**Try to avoid your account going into collections.**  \nNot only can be dealing with a collection agency a headache, but you then have to worry about two negative marks on your credit. To make sure your account doesn't go into collections, don't let your payment go more than 90 days late. American Express will typically send your account to collections after 90 days. With everyone else, you are in dangerous waters after 120 days. Try to make an effort to deal with the original creditor before they sell your account to a collection agency.\nWhy Would a Creditor Settle With You\n------------------------------------\nMost credit card companies may not be willing to talk to consumers until the account is 60 to 90 days late. If you think about it, why would they offer to just let half of the debt go if you are current on your payments? Also, if you are current on everyone but the creditor you are trying to settle with, they are not going to be willing to reduce your debt.\nIf they see you are paying everyone else but them, they are going to feel that since you are able to pay everyone else, you really do have the ability to pay them.\n**Other reasons they would settle:**\n1.  If they believe it is in their best interest.\n2.  if they think you don't have many assets. Because, if they try to sue you they won't be able to collect much if anything from you even if they win.\nSo what does this say? If you've been paying on time and all of the sudden call up the credit card company and tell them you can't pay, they are going to be suspicious and less likely to make a deal. But don't stop paying your bills just to try and convince them to settle. Have an honest conversation with them first.\nHow to Settle Your Debt With the Creditor\n-----------------------------------------\n**You don't need anything in writing from the original creditors in order to accept a deal.**  \nAs a matter of fact, they will refuse to give you anything in writing and that's ok. You might want to record the conversation, if you are not in a two party state, but you must inform them you are recording the conversation. What's a two party state? It means that in some states, only one party on the telephone needs to give permission to have the conversation recorded and that one party can be you. Check your state for exact federal regulations.\nAlso, keep a careful record log of your phone calls, who you talked to, etc. Just a file or notebook containing all of your notes is just fine.\n**Paying by checks over the phone, credit cards is fine.**  \nWe still recommend paying with a cashier's check or money order. Credit card companies are highly regulated, much more so than the collection agencies, and they are, as a result, much more ethical.\n**Get a \"Paid as Agreed\" rating, otherwise, \"Settled\" is the next best thing.**  \nIn recent years, the credit card companies have adopted a immovable stance on your account rating if you settle for less than is owed. They will agree to list your account as \"settled,\" but that's it. You can always try to get a better rating, but we doubt if you are going to have much luck. Remember, settled is better than charge off. At the very minimum the account should have a ZERO balance. You should only agree that the account show settled if all other negative notations, such as charge off, repossession, late notations, and collection, are deleted at the same time. END
 TITLE: Difference Between Debt Negotiation and Debt Settlement CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: June 13, 2017_\nMany people are confused by all the programs proclaiming they can help you get out of debt. There is debt settlement, debt negotiation, and consumer credit counseling. In most people's minds, all these programs are the same and all they are really concerned about is getting you out of debt the quickest and easiest way they can find. But, these methods of erasing debt are not the same. We're going to explain the difference between **debt negotiation** companies and how their operations are different from **debt settlement** companies. By the way, in case you're thinking we are advocating debt settlement firms, this is not the case. We are only explaining the difference.\nWhat's Wrong with Debt Negotiation\n----------------------------------\nMany of the nasty practices by these companies are now illegal, per the FTC regulations that went into effect in 2010. However, we are going to keep posting their old tricks so you can recognize them if you see them in a firm you've hired to settle your debts. (Notes regarding the new laws are highlighted in blue.)\nSetting Up Unsecured Trust Accounts\n-----------------------------------\nDebt negotiation companies will try and set up a \"trust account\" for you even though they are not a licensed bank entity under the Federal Reserve. They will also try to collect a monthly fee to maintain this account. On top of these fees, they will ask you to put away a certain amount of money towards your debt. The idea is to create a savings account until the debt is paid off. Unlike consumer credit counseling services, they do not pay your creditors each month. And your creditors are not told of your arrangement with the debt negotiation company. Per the new laws, all monies must be put into an FDIC insured bank account.\nDebt Negotiation Companies Don't Consider Your Current Financial State\n----------------------------------------------------------------------\nConsumer Credit Counseling Services (CCCS) will make you qualify financially for their program. Unlike CCCS, a debt negotiation company doesn't qualify you for the amount of the payments vs. debt. As a result, you can wind up paying very little towards the principal of the debt on each payment, effectively stretching out the payments for years. The longer you are in the program, the more money they make in their \"monthly admin\" fees. Per the 2010 laws, the firm has to give you a good faith estimate showing you the length of time you'll be in the program based on your ability to pay.\nNo Protection from Lawsuits\n---------------------------\nEven if the debt negotiation programs are run by lawyers, these programs offer you no legal protection. You can be sued by your creditors, they can get a judgment against you and your wages can be garnished. This debt negotiation scenario is also unlike consumer credit counseling where they handle all calls from the credit card companies (but they are also PAYING them for you). YOU must deal with the nightmarish phone calls.\nThere are some credit card companies that are aggressively suing non-paying customers right now, and if they decide to take you on, they will win. Being sued by the credit card company is not like being sued by a collection agency, which usually has poor documentation and no case.\nInterest and Fees Are Not Negotiated\n------------------------------------\nIn addition to putting yourself in danger of being sued, there is no attempt to negotiate interest or fees, so they keep piling up on you. It could mean that while you think you are doing the right thing and making payments towards your cards, your debt continues to grow. Per the new laws, the firm has to disclose the total amount you have to pay per their past history with an individual creditor.\nOnly Credit Card Debt Qualifies\n-------------------------------\nYou can't negotiate anything that is a secured debt, like an auto loan or mortgage. You also can't negotiate down student loans, tax liens, or judgments.\nFees Are Usually Paid Upfront\n-----------------------------\nUsually your first 2-to-4 months of payments go towards fees. There is such a high dropout rate on debt negotiation companies that these guys want to make sure they get paid first. Per the new laws, the firm cannot collect any upfront fees before they've done work for you.\nMost debt negotiation companies claim to be able to negotiate your debt with the credit card companies for about 50 percent of what you owe. You must realize that after 180 days, if you are not sued, your debt gets turned over to a collection agency. The negotiation company is NOT planning on talking to the original creditor, but to a collection agency down the line who will accept debt settlement offers fairly easily. Per the new laws, the firm has to disclose the total amount you have to pay per their past history with an individual creditor. They can't claim \"best case,\" but must cite average case results, including factoring in the dropout rate.\nKnow What's In Your Debt Consolidation Contract\n-----------------------------------------------\nEven if a debt negotiation company did clearly explain what was going on and it was in all of their documentation, we have found none of the debt negotiation companies explained what they were doing. All of their victims had a vague recollection that they were paying a management fee, but they had no idea that their credit cards would go into COLLECTION while they were in the program. Per the new laws, the firm has to give you a good faith estimate showing you the length of time you'll be in the program based on your ability to pay.\nThe U.S. Government Accounting Office (GAO) released a report on April 22, 2010 regarding widespread abuse in the debt settlement and debt negotiation industry.\nHow Does Debt Negotiation Work?\n-------------------------------\nLet's say the company you hire follows all the new laws to the letter. You may still be tempted to sign with them and that's your prerogative. How much money can you actually save?\nYou have $20,000 in credit card debt and the debt negotiation company says all you have to do is pay $300 for 3 years and you'll be debt-free for about 50 percent of the debt. At $300 a month for 36 months, that is only $10,800, so you will be saving $9,200 and you'll be debt-free in 3 years. Sounds like a good deal, right? Wrong. Let's do the math.\n*   You agree to a 3-year plan where you pay $300 a month to the settlement company — $10,800 of total payments.\n*   Your first two monthly payments are the \"admin fee,\" so this is $600 — nothing gets put into your trust account until your third month.\n*   The negotiation company keeps $50 of your $300 payment each month for the service fee. That means only $250 a month is being added to your trust account.\n*   After 34 months, you have $8,500 to settle $20,000 in debt. Remember, 3 years minus the first 2 months for admin fees is 34 months.\n*   The negotiation company, if you are still with the program, will negotiate your debts down to zero with the collection agencies using the $8,500.\nYou save: $9,200.  \nDebt negotiation firm makes: $600 + (34 x $50) = $2,300.\nOther Dangers of These Programs\n-------------------------------\n*   So you say, what's wrong with that? I'm getting a good deal by saving $6,000! Yeah, except almost any collection agency will accept 25 percent of the debt without much of a fight and many will accept 10 percent. You do not have to pay an admin fee to pick up the phone or send in a debt settlement agreement, and you can mostly make a settlement within 6 months to a year. You will also be debt-free. It is really easy to do it yourself.\n*   Let's say of the $20,000 debt, one of the cards comes to $4,000. If the negotiation company gets the collection agency to accept $2,000, it will take you 10 months at $250 per month to have enough in your trust account to pay off just that one credit card. But remember, your first three payments to the settlement company only paid the admin fee. That means your first credit card settlement is 13 months _after_ you started sending them money.\nDo-it-Yourself Debt Settlement\n------------------------------\nAgain, you can settle your debts on your own. Put away some money so you can save the 25 percent of the $20,000. You'll have enough to be debt-free in 16 months, and it will only cost you $5,000. This is not going to be a pain free process; you will still have to deal with creditors calling you, and there is the possibility that you will be sued. However, you will be enduring the same kind of telephone calls and possibility of lawsuits if you signed up with a debt relief company. \nYou can do the same thing without paying a company by following these steps:\n1.  Save $300 a month until you have about 25 percent of the total debt (25 percent of the total debt in our example is $5,000).\n2.  After 16 months of saving, use the $5,000 to settle the $20,000 debt with the collection agency.\nYou don't have to wait until you have the entire amount to pay off a credit card debt that is being handled by a collection agency. You can — and should — try and settle it for less than you owe. END
 TITLE: Difference Between Debt Negotiation and Debt Settlement CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Collection Agencies Who Violate the Law CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: October 24, 2017_\nDo collection agencies violate the law? You bet they do. So, who regulates the debt collection industry? The Consumer Financial Protection Bureau took over the regulation of debt collectors and handling of debt collection complaints from the Federal Trade Commission (FTC) in late 2011. However, today, the FTC still takes an active role in cracking down on illegal debt collection practices. According to the FTC letter to CFPB in March 2013, seven debt collection cases were resolved in 2012. These cases involved collectors whose practices included using abusive tactics to intimidate consumers, misleading consumers while seeking payment on time-barred debts, using faulty data to identify debtors and the amount they owe, using deceptive tactics to collect on payday loans, and otherwise committing egregious violations of the Act and other federal laws.\nIn their last report on debt collection practices in 2011, the FTC reported that hundreds of thousands of consumers contacted the FTC in that year with complaints regarding debt collection issues. In 2011, the FTC received more complaints about the debt collection industry than any other specific industry. In 2010, the FTC received a total of 140,036 complaints which accounted for 27 percent of all complaints received by the FTC. This was up over 4 percent from 2009.\nThere are many cases of collections agencies performing illegal acts. Imagine the number of companies who have not been caught yet! Collection agency stocks are now traded on Wall Street but are more unscrupulous than ever.\n### FTC Lawsuits in 2011-2012\nIn two cases that included civil penalties, the FTC obtained $2.8 million and $2.5 million, respectively, for West Asset Management, Inc., and Asset Acceptance, LLC, the two largest civil penalty amounts the agency has ever obtained for alleged violations of the Fair Debt Collection Practices Act.\nThe FTC charged two other debt collectors with especially egregious practices: Defendants in Forensic Case Management Service, Inc., doing business as Rumson, Bolling & Associates, allegedly threatened physical harm to consumers, desecration of their deceased family members, and killing of their pets to persuade consumers to pay.\n### FTC Lawsuits in 2010\nHere are some recent court cases which were settled in 2010 against collection agencies caught in the act of illegal practices:\n*   In February 2010, the FTC settled an action against Credit Bureau Collection Services and two of its officers to resolve allegations that the defendants violated the law in the course of collecting debts from consumers. Among other things, the complaint alleged that the defendants violated the FDCPA by misrepresenting both to consumers and to consumer reporting agencies (\"CRAs\") that consumers owed the debts and by failing to inform the CRAs that those debts were disputed by consumers. The complaint also alleged that the defendants violated the FTC Act by misrepresenting that consumers owed debts or by failing to have a reasonable basis for such representations. The consent decree filed requires the **defendants to pay a $1,095,000 civil penalty**.\n*   In March 2010, the Commission announced a settlement agreement with collector West Asset Management, Inc. (\"WAM\"), resulting in a **$2.8 million civil penalty**, the largest civil penalty ever obtained by the FTC in a debt collection case. The complaint alleged WAM violated the FDCPA by calling consumers and third parties repeatedly with intent to harass or annoy, and by revealing debts to third parties and calling them for reasons other than to obtain location information about the consumer. In addition, the Commission alleged that WAM engaged in deception in violation of the FTC Act by materially misrepresenting to consumers that WAM was a law firm, it would bring civil action or criminal prosecution against consumers who failed to pay, and nonpayment would result in the seizure, garnishment, attachment, or sale of consumers' properties or wages, or their arrest or imprisonment. The FTC further alleged WAM engaged in unfairness in violation of the FTC Act by debiting consumers' financial accounts or charging their credit cards without their express, informed consent.\n*   In April 2010, the FTC filed suit under Section 13(b) of the FTC Act against an alleged common enterprise composed of Internet-based payday lenders, a collection agency, and their principals, seeking preliminary and permanent injunctive relief in addition to consumer redress or disgorgement of ill-gotten gains. The complaint alleged the defendants violated the FTC Act and the FDCPA by falsely claiming to consumers' employers that they were entitled by law to garnish wages without obtaining a court order; falsely claiming to have informed consumers of their intent to garnish and provided consumers with the opportunity to dispute the debt; and communicating with consumers' employers and co-workers about debts without the consumers' knowledge or consent. The defendants also were alleged to have violated the Credit Practices Rule 32 and the FTC Act by including an unlawful wage assignment clause in their loan agreements with consumers. In April, most of the defendants stipulated to the entry of a preliminary injunction. In September, the Commission entered into a settlement with defendant Mark S. Lofgren containing a $38,133 suspended judgment and permanent conduct relief. Litigation against the remaining defendants - payday lender Eastbrook, LLC, also doing business as Ecash and Getecash; collector LoanPointe, LLC; and principal Joe S. Strom - is ongoing.\n*   In October 2010, the FTC reached a settlement agreement with collector Allied Interstate, Inc. (\"Allied\"), one of the nation's largest debt collectors. The Commission alleged that Allied continued collection efforts even after consumers told the company that they did not owe the debt, without verifying the accuracy of the disputed information or otherwise having a reasonable basis for representing that the consumers owed the debt. The FTC further alleged that Allied violated the FDCPA and Section 5 of the FTC Act by making improper harassing phone calls to consumers (using abusive language or calling many times a day for weeks or months); making repeated calls to third parties seeking to locate a consumer; revealing alleged debts to third parties without the consumer's consent or court permission; and threatening legal action against consumers that it did not intend to take. Under the settlement agreement, Allied paid a **$1.75 million civil penalty** and agreed to stop collection efforts on disputed debts in the future unless and until it conducts a reasonable investigation and verifies the debt. In addition, the agreement bars Allied from violating the FDCPA or from engaging in the types of conduct the complaint alleged violated the FTC Act.\n### FTC Lawsuits in 2009\n*   In June 2009, the FTC settled an action against Oxford Collection Agency, Inc., its officers, and an attorney who acted as its agent, for collection practices allegedly in violation of the FTC Act and the FDCPA. The FTC's complaint alleged that the defendants falsely threatened to garnish consumers' wages, bring lawsuits against them, or have them arrested. It also charged that the defendants used illegal and abusive collection methods such as calling consumers before 8 a.m. or after 9 p.m.; calling their workplace when the collectors knew or had reason to know that the calls were inconvenient; telling employers, co-workers, relatives, and neighbors about the consumers' debts; continuing to call after receiving consumers' written demands to stop; calling consumers repeatedly throughout the day; calling back immediately after the consumer hung up; and using profane or other abusive language. Separate FTC settlements, one with Oxford and its officers, and the other with the attorney and his law firm, each imposed a **$1,060,00 civil penalty** which was partially or wholly suspended based on inability to pay.\n*   In October 2009, the FTC and the State of Nevada settled an action filed in November 2008 against an international Internet payday lending operation that used unfair and deceptive debt collection tactics. The defendants, ten related Internet payday lenders (including Cash Today) and their principals, operated from the United Kingdom and targeted consumers in the United States. The FTC charged them with, among other things, violating the FTC Act by: (1) falsely threatening consumers with arrest or imprisonment; (2) falsely claiming that consumers were legally obligated to pay the debts when they were not; (3) making false threats to take legal action that they could not take; (4) repeatedly calling consumers at work; (5) using abusive and profane language; and (6) disclosing consumers' purported debts to third parties. Under the terms of the settlement, the **defendants had to pay $970,125 in consumer redress** for distribution by the FTC and $29,875 to the State of Nevada.\n* * *\n### FTC Lawsuits for 2008\nThe Commission surpassed its 2007 record for the largest amount of civil penalties obtained in a single FDCPA case with the following settlement:\n*   The largest amount of civil penalties ever in an FDCPA case Academy Collection Service, Inc. (\"Academy\") and its owner, Keith Dickstein, agreed in November 2008 to pay **$2.25 million in civil penalties** to settle charges that they violated the FDCPA and Section 5 of the FTC Act. The complaint alleged that those defendants and two other corporate officer defendants, Albert Bastian and Edward Hurt III, had \"formulated, directed, participated in, controlled, or had the authority to control\" the following acts by Academy collectors: (1) misleading, threatening, and harassing consumers; (2) depositing postdated checks early; (3) falsely threatening or implying that the company would garnish consumers' wages, seize or attach their property, or initiate lawsuits against the consumers if they failed to pay; (4) making unfair and unauthorized withdrawals from consumers' bank accounts; (5) communicating impermissibly with third parties about consumers' alleged debts; and (6) engaging in harassing or abusive behavior, such as threatening the use of physical violence, using obscene or profane language, and repeatedly or continuously causing the telephone to ring.\n*   In May 2008, the Commission settled an action filed in June 2007 against Tono Records and related companies and individuals whose representatives allegedly victimized Spanish-speaking consumers nationwide by posing as debt collectors seeking payments for purported debts that consumers did not owe. Because the defendants presented themselves as if they were third-party debt collectors, they were subject to the FDCPA as well as the FTC Act. The defendants were charged with violating the FTC Act and the FDCPA by: (1) falsely claiming that a debt is owed; (2) falsely claiming to be, or to represent, an attorney; and (3) falsely threatening legal action, arrest, imprisonment, property seizure, or garnishment of wages. Other FDCPA violations alleged included attempting to collect an amount of debt not authorized by contract or permitted by law; harassing consumers; and failing to inform consumers, within five days of their initial communication with them, of their right to dispute and obtain verification of their debt and the name of the original creditor. The settlement imposed a **$1.19 million judgment** against the defendants and permanently enjoined them from violating the FTC Act or the FDCPA.\n*   In September 2008, the FTC settled charges that EMC Mortgage Corporation and its parent, The Bear Stearns Companies, LLC, violated the FDCPA and Section 5 of the FTC Act, among other statutes, in conjunction with servicing and collecting on mortgage loans, including debts that were in default when EMC obtained them. Among other practices, the complaint alleged the defendants had: (1) misrepresented the amounts consumers owed; (2) assessed and collected unauthorized fees; and (3) misrepresented that they possessed and relied upon a reasonable basis to substantiate their representations about consumers' mortgage loan debts. The complaint further alleged the defendants to have made harassing collection calls; falsely represented the character, amount, or legal status of consumers' debts; and used false representations and deceptive means to collect, including falsely representing to consumers with \"Caller ID\" service that defendants were calling from a consumer's local area code. The settlement required the defendants to pay **$28 million in consumer redress**. END
 TITLE: Collection Agencies Who Violate the Law CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Negotiate Credit Rating When Settling Debt CONTENT: Negotiate Credit Rating When Settling Debt with Collection Agency\n-----------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: June 14, 2017_\nNote: This page addresses debts that are with a COLLECTION AGENCY. Here is the article addressing debts still with ORIGINAL CREDITORS.\nOne very important, but often overlooked, area of debt negotiations is negotiating your credit rating. What exactly does that mean you might ask? Well, when you look at your credit report, there are notations after a listing such as, \"paid as agreed\" or \"charged-off\" and these notation affect your credit score. When you are in negotiations with a collection agency, you want to make sure you are able to change these listings to your advantage. Because what's the point of settling the debt when it still may be hurting your credit score?\nInformation on Listing Notations\n--------------------------------\nWhen dealing with a collection agency, always insist on complete removal of a listing from a collection agency. Having a \"paid as agreed\" notation on a collection account will not help you. No matter what the rating, _every collection account is a negative mark_. It's no skin off their nose to delete the listing.\nIf you do make a deal with a collection agency and wind up making arrangements to pay, and there is an original creditor reporting a charge off on your credit report, you can do a bit of clean up. Contact the original creditor and tell them the debt was \"settled\" and they need to update your account to reflect this. Technically, they are obligated to do this, as this is the truth. The original creditor's notation on the account should at the minimum say \"settled for less than owed,\" \"settled charge-off\" or \"paid was charge-off\" and the balance should reflect ZERO. For the creditor to NOT do this is a violation of the FCRA.\nDon't contact the original creditor about this if you plan on disputing the account through the Method of Verification system or just a plain ole credit repair dispute. If you dispute the listing and can't get it off your credit report, only then should you contact the original creditor about updating their account notation.\nImperfect Credit Listing as Part of Your Settlement\n---------------------------------------------------\nYou may find that some of your creditors are willing to hold out longer than you are before agreeing to delete the negative listing from your file. It may seem that they are unwilling to delete the negative listing under any circumstance. Once again, let it be said that every creditor will eventually give you what you want if you speak to the right person, are patient and persistent, and make the right offer. But if you are on a time-line, and even your attorney can't get them to agree to full deletion, you have a couple of other options.\n**List the account as \"Paid\" only**. You may counter-offer that the collection agency list the account as \"Paid\" rather than delete it altogether. This is a true indication of the status of the account and many creditors will concede and agree to this wording. A \"Paid\" status is still very negative for a collection account or an account that will show \"Paid Charge-Off\" or \"Paid Repossession.\" You should insist that the account show \"Paid\" only and that all other negative notations, such as \"Charge-off,\" \"Repossession,\" or \"Collection,\" are deleted at the same time. A simple \"Paid\" notation on a regular trade line is neutral and should not hurt your credit.\n**List the account as \"Settled\" only**. You may counter-offer that the creditor simply list the account as \"Settled\" rather than delete it altogether. \"Settled\" is an inherently negative listing but not as negative an unpaid collection. Don't agree to a \"Settled\" listing until you have exhausted all other possibilities. \"Settled\" will still trigger a credit denial. If you agree to a \"Settled\" notation, you must continue to work hard to delete the notation through the credit bureau dispute process.\n**List the account as \"Paid Charge Off\" or \"Paid Collection\" or \"Paid was 30, 60, or 90 days late.\"** This will be the creditor's first choice, and your _last_ choice, of what to place on your credit report once you have paid. These notations are almost as damaging as showing the same debt unpaid. It sometimes happens that an account is easier to get deleted (through credit bureau disputes) once it has been paid - the creditor now has no compelling reason to keep the negative listing on your report. For this reason, it is still usually a good idea to settle even if the creditor won't budge on deleting or positively modifying the negative listing.\nNow you've negotiated your credit rating, next step is paying the debt. How you pay can make a big difference, so be sure you read our article on the correct ways of paying your debts.\n### **More Articles About Debt Settlement**\n*   DIY Debt Settlement\n*   Difference Between Debt Negotiation and Debt Settlement\n*   How to Negotiate Medical Debt and Hospital Bills END
 TITLE: Debt Settlement Myths - You Can Settle Debts On Your Own CONTENT: Uncovering Debt Settlement Myths\n--------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 13, 2017_\nIt's too bad these debt settlement myths are still floating around out there, steering people in one wrong direction or another. Don't get caught in that trap. Whether you're considering settling a debt, or already decided against it, do yourself a favor and get the facts first.\n### 1\\. Anyone Can Qualify for Debt Settlement\nThough many people successfully negotiate debt settlements, debt collectors are partial to people who are going through genuine hardships. So unless you have recently lost income, are going through a divorce, are dealing with medical expenses, or the like, your debt settlement options are slim. There is one exception: debt that has been charged off and sold from the original creditor to a collection agency. The older the debt, and the more times it's been sold, the better the deal you should be able to get. Of course, in that case you want to try debt validation first. Plus, if it's old enough, you may have reached the statute of limitations, in which case you are not legally required to pay the debt at all.\n### 2\\. Any Type of Debt Can Be Settled\nDebt settlement is an approach that only works with _unsecured debt_, such as credit cards, medical bills, and student loans. If you're having trouble paying on a _secured debt_, such as a house or car, your creditor simply seizes the property.\n### 3\\. Only a Debt Settlement Company Can Settle a Debt\nThere is nothing a debt settlement company can do that you cannot do for yourself. Period.\n### 4\\. Any Debt Settlement Company Will Do\nIf you do decide to use a debt settlement company, do your homework. While there are legitimate companies out there, many employ shady practices that could end up doing you more harm than good. Check them out first with the Better Business Bureau.\n### 5\\. Debt Settlement Companies Have Special Relationships With Creditors\nCreditors absolutely do not foster special relationships with debt settlement companies. In fact, creditors would much prefer to work with you, a preference you should embrace provided you have done your homework first.\n### 6\\. Only a Professional Can Get Me the Best Deal\nThere is nothing a debt collection company knows that is not public knowledge. Debt settlement requires no special education or certification. Here at Credit Info Center, we have all the information you need to negotiate a debt settlement on your own.\n### 7\\. Working With a Debt Settlement Company Will Protect You From Lawsuits\nJust because you have a debt settlement company negotiating on your behalf, this in no way affects the debt collector's right to sue you.\n### 8\\. Your Money is Safe With a Debt Settlement Company\nOne tactic many debt settlement companies will employ is asking you to stop making your payments to the collector, and to send your payments to the debt settlement company instead. The idea is that once the debt collector sees that you're not going to make your payments, they'll be more open to a settlement. The debt settlement company negotiates a deal, and your money is already in their possession to make good on it (minus, of course, their profit). Unfortunately, the money you \"deposit\" with a debt settlement company is not FDIC insured, as it would be in a bank. In some unfortunate cases, these debt settlement companies go out of business or simply disappear, taking their clients' money with them.\n### 9\\. A Settled Debt Will Automatically Fall Off My Credit Reports\nOne of the biggest mistakes people make when settling debts is failing to negotiate the terms of how the debt will be handled on their credit reports. What you should start out insisting is that, in addition to what you agree to pay, the listing will be removed from your credit report. If for some reason the collector will not agree to this, hold out for it. Every collector will eventually give you what you want. It just might mean waiting it out or talking to someone different. However, if you are on a timeline and need to resolve the debt sooner than later, ask for \"Paid\" status. Second to that should be \"Settled.\" Your last resort (and the collector's preference) is \"Paid Charge-off\" or \"Paid Collection\" or \"Paid was 30-, 60-, or 90-days late.\"\n### 10\\. Settling a Debt Will Improve My Credit Score\nTheoretically, settling a debt should improve your credit. You are, after all, paying a debt collector based on a renegotiation that both parties have agreed to. However, if you do not insist on the listing being removed from your credit report, even a settled debt will continue to drag down your score.\n### 11\\. The Only Alternative to Debt Settlement is Bankruptcy\nIf you're having trouble paying on unsecured loans, let your creditors know what's going on ask them for help in the form of a forbearance. If they agree, this will reduce your monthly payments, or defer them completely, until you can get back on track.\nAnother alternative to debt settlement (as well as bankruptcy) is debt validation. This can prove an extremely effective approach for old debt that has been charged off and sold from the original creditor to a collection agency. Often times, proof of the debt is not transferred from one party to the next. This plays in your favor, as the debt validation process requires proof they can legally collect from you. Minus this proof, you are not obligated to pay and the listing must be removed from your credit report.\n### 12\\. If You Do Not Settle Your Unpaid Debt, It Will Never Go Away\nThough debt collectors will attempt to collect from you as long as they are able, there comes a time when you are no longer legally responsible for it based on the Statue of Limitations in your state.\n### 13\\. You Don't Have the Time or Energy for DIY Debt Settlement\nDebt settlement companies would love you to believe that settling a debt with a collector takes more time and energy than you can muster. This is absolutely not true, as proven every day by people who successfully settle their debts on their own. We have all the debt settlement information and sample letters you will need in our bookstore. END
 TITLE: Do It Yourself Debt Settlement and Debt Negotiation Techniques CONTENT: Debt Settlement Techniques: Settle Debt On Your Own\n---------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 18, 2017_\nYou can find numerous articles on debt consolidation, debt negotiation and debt settlement companies right here on our website. Our position on these companies is that you don't need them — you can settle your debts on your own! Our eBook \"Settling Your Debts For Pennies on the Dollar\" can be purchased in our bookstore and thoroughly covers how to negotiate and settle your debts for pennies on the dollar.\nEven with all of the free information available on our website, many people are still afraid to take on debt settlement, but we assure you that you can do it! Don't get discouraged — keep reading!\nAdvantages to Settling Your Debts\n---------------------------------\n*   Handling everything yourself cuts out the monthly expense of hiring a debt settlement company.\n*   You have access to a complete library of resources, forums, books, and video right here on our site.\n*   You decide what debts you want to settle and for how much.\n*   If you have a question, you can post a question on our discussion forums.\n*   You will not feel alone, instead you will feel supported and informed.\nDo it Yourself vs Using a Debt Settlement Company\n-------------------------------------------------\n1.  Excessive Fees Charged\n2.  Creditors Refuse to Work with Debt Settlement Companies\n3.  More Regulations\n4.  Large Up Front Fees\n5.  False Claims Made by Debt Settlement Employees\n6.  Debt Settlement Companies Control Your Money\n### Excessive Fees Charged\n**Reason #1:**  When the industry was started about 20 years ago the fee structure was on a success oriented basis meaning commissions or fees were charged on the amount of savings the company was successful in negotiating for their client. Now fees are 12 to 15 percent of the total principle balance before any effort is made to work on your account. Usually the fees are prorated over the first year of the contract but some companies take their fees over the first 3 or 4 months. This is money that cannot be used for settlement purposes. Some companies also charge a start up fee and monthly service charges.\n**Creditinfocenter Answer:**  Our eBooks, Forums, videos and pages upon pages of information in the website, will show you how to work the system to position your accounts in a way that your creditors will want to settle with you for 35 to 50 percent of the total amount. You can use our forums where you can share experiences and successes with other forum members. You can also post questions for our in-house experts for any further advise you may need.\n### Creditors Refuse to Work with Debt Settlement Companies\n**Reason #2:**  Their point is that the high fees should be better used to apply against any debt. For example, let's say you owe $25,000 on five cards at $5,000 per card. Your up front fee to a debt settlement company for professional services may cost you as much as $3,750 or more.\n**Creditinfocenter Answer:**  Our free and low cost information on our website, leaves you with more of your money to apply to your debts, which will allow you to become debt free sooner and at less cost. Recently both MBNA (now Bank of America) and Citibank have announced their refusal to deal with debt settlement companies. To get around this roadblock, the debt settlement companies are having their clients call on their own after a training lesson. We provide you all the information so you can feel confident about negotiating on your own.\n### Increasing Industry Regulations\n**Reason #3:**  More and more regulations are being forced on the debt settlement industry by various federal and state regulators.\n**Creditinfocenter Answer:**  In 2004, the FTC shut down one of the largest credit counseling and debt settlement companies for charging millions of dollars in erroneous fees. See Our related articles on Ameridebt, and other debt consolidation companies. The following states have either banned the use of or severely reduced the activities of debt settlement companies: Delaware, Georgia, Idaho, Kansas, Maine, Mississippi, Minnesota, North Carolina, South Carolina, Utah, and Wisconsin. We will provide you with the proper information to negotiate a settlement on your own.\n### Excessive Up Front Fees\n**Reason #4:**  Fees being charged by debt settlement firms constantly go up or they charge large fees up front.\n**Creditinfocenter Answer:**  The debt settlement companies know how unpredictable your financial situation can be, what you think you can do today can often change by tomorrow. You might work the program for a year and may have settled 1 or 2 accounts but what if you have to stop the process? Where are you now financially? Your accounts are now a year older with hardly any money to settle because you paid the Debt Settlement company their fees up front based on your total debt.\n### False Claims Made by Debt Settlement Employees\n**Reason #5:**  Debt settlement company professionals and employees claim they can dictate to the creditors sizable discounts on your debt.\n**Creditinfocenter Answer:**  This is simply not true! Debt settlement companies work in the same arena as other debtors and have no influence on the collection or debt reduction practices of the large credit card companies. However, as we've laid out in our DIY debt settlement article, you can usually settle with collection agencies for 10 to 25 percent. We can show you how to approach the process in a serious business like manner, which will impress both you and your creditor. The debt settlement process is complicated but we have broken down the entire process making it more simple and easy to understand. With our eBooks and information on this site, you will have everything you need to reduce your debt.\n### Debt Settlement Companies Control Your Money\n**Reason #6:**  Most debt settlement companies will set up your set aside money in an \"escrow account\" that they control. Red flag items here! What is this escrow account? Do they give you a monthly statement on it? Remember, these companies are not banks, and therefore the accounts are not FDIC insured like most regular savings accounts. Just think of it, thousands of dollars of your money which you cannot touch and which is at risk.\n**Creditinfocenter Answer:**  We will suggest ways for you to set up your own account in a bank that you choose. It is important to manage these accounts based on you financial abilities. END
 TITLE: Who and What are Junk Debt Buyers? CONTENT: What is a Junk Debt Buyer?\n--------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 10, 2017_\nA junk debt buyer is a collection agency who purchases delinquent or charged off debt from credit card companies, or even other collection agencies. Also referred to in the industry as bad debt buyers, zombie debt collectors, or simply debt buyers, these companies fall under the Fair Debt Collection Practices Act definition of Collection Agency. As the visibility and profitability of this rapidly expanding new industry has grown, junk debt buyers range in size from small private businesses up to million dollar publicly traded Wall Street companies! Credit card debt accounts for nearly 70 percent of the accounts sold to JDBs, followed by auto loans, telecommunications debt and retail accounts.\nHow Do Junk Debt Buyers Operate?\n--------------------------------\nJunk debt buyers generally buy alleged debts for cents on the dollar and then attempt to find ways to collect on the debt. Often times, the debt is \"out-of-statute\" (That is, the statute of limitations on it has expired and it no longer legally needs to be repaid). The buyer then attempts to get the debtor to pay a small portion of the debt. If the debtor does so, they have reaffirmed the debt and started the statute of limitations over again. It is very important that consumers be aware of their rights and the laws that protect them as an alarmingly large number of these debt buyers are barely operating within the law.\nSome typical unacceptable practices by JDBs include pursuing debts that are not actually owned by the consumer in question; harassment or verbal abuse; multiple listings of the same debt; and, as stated previously, attempting to collect a debt that has passed it's statute of limitations. Frequently in these situations, the JDBs will use the practice of re-aging an account which basically means that they report it as more recent than it really is.\nListing of Common Junk Debt Buyers\n----------------------------------\nThe listing below is by no means an exhaustive list of junk debt buyers, but some common names of companies that pursue third-party or junk debts. If you see one of these names listed on your credit report, then you know your debt was sold to a junk debt buyer.\n*   CACH, LLC\n*   Midland Funding, LLC\n*   Midland Credit Management, Inc.\n*   LVNV Funding, LLC\n*   Portfolio Recovery Associates, LLC\n*   Cavalry SPV I, LLC\n*   Asset Acceptance, LLC\n*   Copper State Financial Management, LLC\n*   Cortez Investment Co., LLC\n*   Unifund CCR, LLC\n*   Salander Enterprises, LLC\n*   Lakewalk, LLC\n*   Skystreak, LLC\n*   Berkeley Row, LLC\n*   Razor Capital, LLC\n*   ELCHE, LLC\n*   Autovest, LLC\n*   Security Credit Services, LLC\nHow Much do Junk Debt Buyers Pay for Debt?\n------------------------------------------\n*   Debts that have recently been charged off: 6 to 7 cents on the dollar.\n*   Accounts that are slightly older and on which a collection agency or two has already taken a whack: 1.5 cents to 2 cents on the dollar.\n*   Years-old, out-of-statute debts: A penny or less.\n\\* Source: Sean McVity, portfolio broker at Keefe, Bruyette & Woods. END
 TITLE: Who and What are Junk Debt Buyers? CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
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 TITLE: Successful Debt Negotiation Stories CONTENT: Successful Debt Negotiation and Debt Settlement Success Stories\n---------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: June 12, 2017_\nOur methods of debt settlement do work. Some of you out there may be skeptical, but we can back up our claims by giving you some real life success stories as shared by our debt forum readers. You can visit our forum at any time and ask questions, read other posts, and get a lot of helpful tips from people just like you.\nBelow are just a few of the stories we have heard over they years. We hope yours will be another success story!\n* * *\nWas able to settle with collection agency, rather quickly, at about 30 percent. Their letter is good, covers what's needed.\n* * *\nI've thus far been able to negotiate 2 settlements - Wells Fargo and Bank of America. They both negotiated right before charge off @ 50% (3k and 1k settlements, respectively). The negotiations were relatively painless compared to the other creditors.\n* * *\nI just finished settling with Bank of America for 15%.\n* * *\nI just entered a settlement with HSBC for 50% of the balance paid over 6 months. I was at day 100 overdue not yet charged off. They sent a letter offering 60% but I was able to talk them down to 50%.\nIn December of 2007, I stopped making my credit card payments and I had $133,000 in credit card debt that was growing monthly at 29.99% interest with late fees and over-limit fees. I was more than panicked with many sleepless nights and the phone ringing off the wall.\nI'm happy to say that with the right planning; I borrowed from my 401k, received money from family, cut back on my expenses and sold personal possessions - I was able to come up with enough money to settle my accounts. I had the following results:\nBOA - 38% at 90 days delinquent  \nChase - 45% at 120 days delinquent  \nCiti - 38% at about 100 days delinquent (they called me)  \nDiscover - 50% at 170 days delinquent (the hardest one to settle)  \nSears - 0% financing for 5 years at 120 days delinquent.\nI now only owe $6,000 in credit card debt with Sears and resolved my credit card situation in about 7 months. I still have some tax implications to deal with, but I'm trying to sell my home so I can take care of that. If I do not sell by filing next April, I will just have to work something out with the IRS. I am insolvent for about $45,000 of the savings so my tax implications should be around $12,000 - I receive a refund generally of $5,000-$6,000 so that means I'll have $6,000-$7,000 left to pay them; the IRS will take a installment plan at 8% interest if you work it out with them and I could do that until I filed a few more years. They can have my refunds, to me it beats paying those credit cards who were at $4,000 a month by the time they were done with me.\nI did my own negotiating with the creditors and found that if you treat them with respect; most of them treat you with respect. I talked to some very caring people that could relate to my situation.\nI guess I would say from my experience, to anyone thinking of doing debt settlement, is to sit down and figure out what you owe and figure 50% of that amount is what you will need settle your accounts. I was fortunate because I saw it coming and was able to borrow before it was too late and that is what made my debt settlement successful. If you wait until it is too late and you have no resources to borrow from or family to help you; you will be less successful.\nI think the biggest mistake people make is waiting and trying to keep paying until they are at the end of their rope. If you know you are in trouble, see it coming and still have some assets available by borrowing from your home or 401k or you still have some savings; don't use up all your resources until you have nothing else to tap into; stop the bleeding before it's too late.\n* * *\nThis reader mailed in his experience with negotiating his debts down and repairing his credit report. We thought it was extremely valuable, so we are posting it here.\nFrom 1992-1996, I went through a horrible period, mostly due to a bad marriage. During this time, my credit went downhill... fast. Needless to say, now I have a lot of work ahead of me to get my credit back.\nI saw an ad back in March for AmeriDebt, which advertised for a \"Debt-Consolidation Loan\". While, by this time, I had already started to make some progress with repaying my debts, I thought that obtaining a consolidation loan might speed up the process a little. I filled in the information and applied, and got a response two days later.\nThe gentlemen that I spoke with sent a form for me to fill out, and explained to me that they were a \"non-profit\" organization. When I asked about the process, he explained that they could help me reduce my interest, and negotiate with my creditors. There really wasn't any mention about a loan. What was mentioned was the fact that they charged a \"small fee\" for their services to pay for their overhead. It didn't take me but a minute before I decided that I didn't want to spend extra money to pay someone else's bills. Needless to say, I didn't join.\nI would like to let all of your readers know that they should be extremely cautious when dealing with debt consolidation companies. Much of what they offer, I have been able to do on my own, although it has been difficult.\nThe first step I did is request copies of my credit reports from all 3 CRA's. When requesting them, I asked for the list of creditors, which contains the addresses and phone numbers of all creditors listed. Then, I went through and itemized all of my negative bills, by both amount and type of certain bills are more often overlooked (medical bills, for instance) than others (charge-offs, installment accounts, repossessions, judgements, rent, and related items, etc.).\nAt this point, I began making payment plans with two or three creditors at a time. I found that oftentimes the amount shown on the credit report is the principal amount only, and the creditors have added interest. Nearly all of them cannot or will not negotiate on the principal amount, but will discuss reducing the interest (especially if they think they can get the bill paid immediately). Once I was satisfied that I was getting a fair deal, I paid the bill off, in each instance writing a check.\nOnce the check had cleared, I immediately contacted the CRAs and disputed the status and balance of the bill. I have found that this has worked to my advantage. Most of the collection agencies would respond as a paid collection (the best that I could hope for at the time, as they were 4-5 years delinquent), but many didn't respond to the CRAs, allowing the items to be deleted. Within the past six months, I have reduced my TransUnion report from 10 pages to 6! By year's end, I will have 1 negative account left open, and that one will be paid within the following year!!!\nAnyway, sorry to ramble, but I want to let everyone out there know that they should strongly consider working on their own to repair their credit. I certainly believe that no one should have to pay someone to help them get out of debt. I appreciate the services that you offer, and find the site very insightful. I hope that more people are made aware of what they can do on their own.\nSigned,\nSuccessful Hardworking Negotiator\n* * *\nAnd here's another letter from a determined lady who negotiated her way out of debt on her own:\nYou are the very BEST! I took all your advice and dealt with my creditors myself with great results! Not surprisingly, the credit card companies that are the biggest crooks (i.e. consistently post payments late so they can gouge out a \"late fee\") gave me the most grief. Others were really terrific.\nAll the info I got from you gave me the confidence to take matters into my own hands. I lined up my creditor info and started calling with my sob story and the when\/how much I could pay. They seemed surprised that I called them. Then I told them I'd cooperate if they'd cut me some slack on the credit report. For the most part, they were okay to deal with. Their part of the game was to try to make me cough up more $$ than I could afford but I reminded them I'd been unemployed for almost 7 mos. and they backed down. Four of them were totally okay, but First USA (of course) and G.E.Card Services were jerks.\nYou may already know this but I'll mention it anyway. I found out its a very good idea to decide early in one's financial crisis which credit card(s) one will never be able to pay (or can live without) and use that to salvage a little portion of your credit report. For example, G.E. took it upon themselves to close my acct. once the pmt. was 57 days late. Well, now the report will reflect late pay AND they had to stop my deviant behavior by canceling my acct. Whereas if I'd beaten them to it and cancelled it myself (sensing that they'd probably be jerks anyway) when I knew I was about to take a financial dive, that wouldn't have been yet another glitch on my beloved credit report. It's not a big deal but maybe I can defend myself a little better someday if I can make it at least appear that I made the effort to stop the madness by closing the account. Thanks again.\n* * *\n### **More Debt Settlement Articles**\n1.  Negotiate Your Credit Rating\n2.  Can a Creditor Sue You After Settling Your Debt?\n3.  Difference Between Debt Negotiation and Debt Settlement\n4.  How to Negotiate Medical Debt and Hospital Bills END
 TITLE: Alternatives to Filing Chapter 7 and Chapter 13 Bankruptcy CONTENT: Alternatives to Filing Bankruptcy — Get Your Debt Under Control \n----------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 3, 2017_\nWe get a lot of questions on our forums about bankruptcy and many are looking for a way to avoid filing for bankruptcy. While there is no easy answer and everyone has a unique situation, we thought we would put together some of best recommendations for getting control of your debt so you can avoid filing for CH 7 or CH 13 bankruptcy. Be warned, there is no easy way to get out of debt. Some hard choices are in front of you but there are always alternatives to the long-lasting effects of filing bankruptcy.\nBelow are some basic strategies for getting your debt back under control. We've listed them in order of best to worst in terms of the effect they will have on your credit.\nReduce Your Expenses\n--------------------\nIf your credit isn't in terrible shape, can you reduce your other expenses while you pay the debt off? Perhaps some fairly painless changes to your lifestyle can bring your bills in line with your income. If not, some hard choices may be required. Some examples:\n*   Do you really need things like cable television? Get rid of the extraneous expenses.\n*   Ask a relative for a loan.\n*   Can you do without the second car? If so, sell it.\n*   Pull equity out of your home by refinancing.\n*   Apply for a non-secured signature loan.\n*   Sell your home, pay off your debts with the proceeds, and rent.\n*   Cash out your 401K or any other retirement benefits.\n*   Sell those family heirlooms\/jewelry\/guns that are too valuable to use anyway.\nSave More Money\n---------------\nSometimes the best way out of your financial situation, especially if your problem is credit card debt, is to just not pay your bills, and save the money you would have put towards minimum payments into a savings account.\nSettle Debts with Creditors\n---------------------------\nIf you are willing to negotiate with your creditors, you can try and settle your debts yourself for less than you owe, sometimes without damaging your credit rating.\nGet Help From a Credit Counselor\n--------------------------------\nIf your credit is really bad and the suggestions above won't make a dent in your debt, we suggest going through Consumer Credit Counseling Services (CCCS). Check the Internet for an office near you. CCCS will give you a plan for paying off your debts as if you were in a Chapter 13 bankruptcy without ever filing a bankruptcy.\nIf Consumer Credit Counseling Services (or CCCS) won't take you, you may want to consider bankruptcy. Doing a Chapter 13 bankruptcy takes longer, but your credit is in a little better standing than it will be if you file Chapter 7. You have up to 5 years to pay off your debts when you file Chapter 13 bankruptcy. Another plus is the bankruptcy drops off 7 years from the date you FILE, not finish. Therefore, you will have the bankruptcy for a maximum of 7 years.\nFile Chapter 7 Bankruptcy, as a Last Resort\n-------------------------------------------\nIf you are so far in debt that you will never be able to repay it, the best solution may be a Chapter 7 bankruptcy. A Chapter 7 bankruptcy is the least desirable credit-wise but you are typically out of bankruptcy in 6 months and you don't have to repay any debt. One disadvantage is that this shows on your credit report for 10 years from the date of filing your bankruptcy. Another disadvantage is that creditors are starting to tighten their credit requirements. You may have a tough time getting financing in the future.\nThere is no magic solution for getting out of debt. Don't believe anyone who tells you otherwise. END
 TITLE: Creditor Can Sue You After Settling the Debt CONTENT: Can Creditor Sue After Negotiating and Settling Your Debt\n---------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: June 13, 2017_\nSettling your debt is not an easy task and hopefully some of our debt settlement articles have been helpful. Up to this point, you have been in contact with the collection agency and you have been successful in negotiating down your debt. Now comes the most important part of the entire process, paying them. This is a crucial part of the entire process and this is where you need to be the most careful in how you pay, who you pay, and knowing what will happen next.\nCan You Be Sued After You Settle Your Debt?\n-------------------------------------------\nYes, if you don't protect yourself during and after the settlement. You need to get a written agreement with the collection agency saying the amount being paid is considered payment in full.\nTips on Paying Your Debt After It's Settled\n-------------------------------------------\n**Never Disclose Where You Work or Bank**  \nIf you are asked, refuse to give out this info. Why? If your settlement falls through, and the creditor gets a judgment against you, knowing where you bank or work will make it easy to collect on the judgment. In addition, this is none of their business and not relevant to the matter at hand.\n**Never Pay Your Settlements With a Personal Check**  \nHow you payment them is very important. If you pay via personal check, you have just given your creditor complete banking information. For this reason, NEVER send a personal check. Get a cashier's check or money order. Make sure you get the money order or cashier's check from a different bank than your own bank or the post office. This may sound a bit paranoid, but better to be safe than sorry.\n**Keep a Copy of the Money Order or Cashier's Check**   \nCollection agencies keep notoriously bad records and it's your word against theirs if you say you paid and they said you didn't...unless you have the copy of the money order or cashier's check.\nIf You Negotiated a Settlement for Less Than You Owed, Can the Creditor Sue You For the Balance?\n------------------------------------------------------------------------------------------------\nYes! You need to read the following information carefully.\nSome collection agencies will agree to settle with you for far less than you owe and then turn around and hire another collection agency to collect the difference. However, in many states this is illegal. Once a creditor deposits or cashes your check, even if they strikes out the words \"payment in full\" and writes \"I don't agree\" on the check, they can't come after you for the balance. The states where this law is enforced:\n**Arkansas**\n**Colorado**\n**Connecticut**\n**Georgia**\n**Kansas**\n**Louisiana**\n**Maine**\n**Michigan**\n**Nebraska**\n**New Jersey**\n**North Carolina**\n**Oregon**\n**Pennsylvania**\n**Texas**\n**Utah**\n**Vermont**\n**Virginia**\n**Washington**\n**Wyoming**\nSome states have modified this law. In the following states, if a creditor cashes a full payment check and explicitly retains his right to sue you by writing \"under protest\" or \"without prejudice\" with their endorsement, they can come after you for the balance. But those exact words must be used. If they write \"without recourse,\" communicates with you separately, notifies you verbally, or writes on the check this is \"partial payment,\" it is not enough.\n**Alabama**\n**Delaware**\n**Massachusetts**\n**Minnesota**\n**Missouri**\n**New Hampshire**\n**New York**\n**Ohio**\n**Rhode Island**\n**South Carolina**\n**South Dakota**\n**West Virginia**\n**Wisconsin**\nCalifornians Get a Break Due to a Legal Loophole\n------------------------------------------------\nCalifornia lets creditors cross out the full payment language and sue you for the balance. However, when they passed this law, they also passed a separate law allowing California debtors to get around it. Getting around this law requires specific steps and language. To use it, this procedure must be followed exactly.\nHere is the procedure and the sample letters.\n* * *\n**More Articles About Debt Settlement**\n---------------------------------------\n*   Negotiate Your Credit Rating\n*   Difference Between Debt Negotiation and Debt Settlement\n*   How to Negotiate Medical Debt and Hospital Bills END
 TITLE: How to Protect Your Kid's College Savings from Debt Collectors CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 19, 2017_\nIf you have been saving for your child's education, the last thing you want is for a debt collector to take it all away. But can they? Are college savings accounts safe from creditors? What if you are sued by a creditor and you lose — can they collect the money owed by tapping into your son or daughter's college fund? These are all scary possibilities and ones that need to be planned for far in advance of collection proceedings or bankruptcies. If you are thinking of starting a college fund for your child, or if you already have one in place, you need to make sure it is set up properly so that it does not become fair game for debt collectors or the court system.\nAre College Savings Accounts Safe?\n----------------------------------\nWe hate to be vague, but the answer to that question is \"it depends.\" It depends on the way the money has been socked away, your state laws, and even how recently savings were put into the account. The most popular type of college savings account is the 529 savings plan. This type of account has 3 parties involved: the owner (parent), the contributor (most likely the parent), and the beneficiary (the child).  Now, here is where it gets a bit muddy. State laws vary with regard to whose interests are protected if there is a judgment brought up as a result of a bankruptcy or a lawsuit. In some states, for example, if there were a judgment against the beneficiary, funds would be protected. But if the contributor lost a lawsuit, that money might be at risk. State laws change so be sure to consult an attorney for specific advice.\nSet Up Savings Account Properly\n-------------------------------\nOne way to protect the money you are saving for your child's college education is to put it into a trust, more specifically, an irrevocable children's trust (ICT). This type of trust can contain a variety of assets without the limitations of a 529 savings plan. Also, this trust can be earmarked in whole or in part to cover educational expenses other than simply tuition.\nBut, in order to protect the assets of the trust from creditor's claims, it must be set up properly. It requires a grantor, a beneficiary, and a third-party trustee who is neither the grantor nor the beneficiary. Our best advice to you would be to contact either a well-qualified financial planner or an estate attorney to set up this trust. Depending on your net-worth, size of the savings account, and possibly other assets you want to include in the trust, your best bet it to have an experienced person do all of this for you. You want to make sure you present all possible scenarios to your attorney so that you have the best protection for your money.\nPlan Ahead\n----------\nNo one likes to think of the possibility of being sued or filing for bankruptcy, but you never know what could happen in your life in the next 5 to 10 years. What you don't want to have happen is to find out you are facing a lawsuit or bankruptcy and then try to dump money into these savings strategies after the fact. This will probably backfire for a couple reasons;\n*   There are limits on how much can be contributed to the plans without running into gift tax issues.\n*   This type of action may be considered \"fraudulent conveyance,\" which can make a bad situation even worse.\nIn the case of bankruptcy, there is a \"look-back period\" during which transfers made too close to the bankruptcy filing can be reversed and you might lose all that money to pay off your creditors. Of course, even the best-laid plans can not foresee a serious illness, natural disaster, or unemployment, but if you being proactive about saving for your child's education take the time to plan ahead. Always consult with a financial planner to make sure you are structuring everything correctly so in the event of a catastrophe, your child's money will be safe.\nKnow Your Rights When Dealing with Debt Collectors\n--------------------------------------------------\nLastly, knowing your rights when dealing with debt collectors is crucial. If a debt collector threatens to take your kid's college fund, it may be an illegal threat under federal law. The FDCPA (Federal Debt Collection Practices Act) does not allow collectors to threaten things they cannot do. And, since these accounts are off-limits to them, such a threat is a violation of the FDCPA and you may be able to sue them for breaking this law. If you know your rights, you won't be pressured into paying debts you don't owe, or using money you have saved for other purposes. END
 TITLE: How to Protect Your Kid's College Savings from Debt Collectors CONTENT:    |  |  |  | \n: . END
 TITLE: Prevent Debt Collectors From Ruining Your Credit CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 14, 2017_\nIf you are behind on paying your bills, chances are a debt collector may be calling you soon. Though debt collectors would prefer you to think otherwise, having a debt in collections is not the end of the world. Certainly, your credit will take a hit, but there are steps you can take to minimize damage.\n**Challenge the Validity of the Debt**\n--------------------------------------\nThis is a particularly effective tactic for old credit card debt. The more times it has been sold, from one debt collector to the next, the less likely they have on file an adequate paper trail proving the debt belongs to you.\nIf the debt collector cannot provide such proof, they cannot collect on the debt and the collection listing must be removed from your credit reports. Click here to learn more about debt validation.\n**Consider Settling the Debt**\n------------------------------\nIf the debt collector manages to provide proof that you do, indeed, owe the debt to them, consider debt settlement.\nJust be sure to:\n*   Play it cool. Don’t let on how anxious you are to get this thing resolved. That’s a sure way to prolong it even further, as they know you’ll break before they do.\n*   Do not accept the first offer, or even the second. Decide on what _you_ are willing to pay to resolve the debt and keep rejecting their offers until they get there (or very close).\n*   Before agreeing to a settlement, insist on complete removal of the collection listing. And make sure to get this stipulation in writing.\nLearn more about settling debts on your own.\n**If You Are Being Sued, Make Sure to Respond**\n-----------------------------------------------\nThe vast majority of people sued by a debt collector simply ignore it. Unfortunately, this results in a default judgment against you, requiring you to not only pay the debt but also the debt collector’s legal fees. Of course, debt collectors know this all too well, which is why they are increasingly filing so many lawsuits. Don’t let them get away with it!\n### **_Check the statute of limitations._**\nCould it be the debt collector is not even allowed to collect on this debt? It could be, as many debt collectors are \"robo-signing\" lawsuits these days, meaning they’re not taking the time to be sure they have the legal right to proceed as such.\n### **_Challenge the debt._**\nIf the debt collector cannot prove that you owe the debt or that they have the legal right to collect on it, the court will throw out the case.\nThe truth is, debt collectors don’t want to spend the time and money taking you to court. Filing the lawsuit is simply used as a scare tactic that works more often than not. So don’t be surprised if, after responding to the lawsuit, the debt collector offers you a deal.\nLearn more about fighting a debt lawsuit.\nFor specific questions not answered here, try asking in our free and very active forum. END
 TITLE: How To Deal With a 1099-C IRS Tax Form CONTENT: Step to Take if You Received a 1099-C\n-------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 12, 2017_\nThey can come out of the blue, reminding you of debts you thought finally resolved. Isn't that the point of debt settlement, after all? Unfortunately, the debt you've been forgiven is considered income by the Internal Revenue Service (i.e., you're expected to pay taxes on it). Thus the purpose of the 1099-C, a form creditors are required to file on forgiven debts of $600 or more so that the IRS knows to how much to bill you for. Fortunately, there is also a system in place to protect the rights of tax payers. Under certain circumstances, you may owe nothing.\n### Step One\nDon't ignore it. If you received a copy of a 1099-C in the mail, so did the IRS. Ignoring it suggests to the IRS that you are trying to avoid paying the tax you owe. Best case scenario, they take what you owe out of your income tax return, or they send you a bill. Worst case, you get audited.\n### Step Two\nValidate the debt. If you've been through the debt settlement process, you're probably well aware that creditors can make mistakes. The information on a 1099-C is no exception. Look over the form carefully and request validation of the debt from the creditor. If they cannot prove you ever owed this debt, you can provide documentation of such to the IRS so that you can be relieved of your tax liability.\n### Steps Three and Four\nDetermine if you qualify for an exclusion or an exception. Such qualifications mean the settled debt amount should not be counted toward your gross (taxable) income.\nYou may qualify for an exclusion in the follow circumstances:\n*   Cancellation of qualified principal residence indebtedness.\n*   Debt canceled in a Chapter 11 bankruptcy.\n*   Debt canceled due to insolvency.\n*   Cancellation of qualified farm indebtedness.\n*   Cancellation of qualified real property business indebtedness.\nYou may qualify for an exception in the following circumstances:\n*   Amounts specifically excluded from income by law such as gifts or bequests.\n*   Cancellation of certain qualified student loans.\n*   Canceled debt that if paid by a cash basis taxpayer is otherwise deductible.\n*   A qualified purchase price reduction given by a seller.\nNote, the two most common circumstances under which tax payers qualify are exclusions for either debt canceled in a Chapter 11 bankruptcy; or debt canceled for insolvency, meaning it is proven the tax payer's liabilities exceed their assets.\n### Step Five\nFill out and submit Form 982 to the IRS. It is on this form that you will indicate why you qualify for an exclusion or exception.\n### Step Six\nConsult a tax professional if you have any doubt as to how to fill out Form 982 and\/or whether you qualify for an exclusion or exception.\n### Step Seven\nPay the tax, if need be, but only after exhausting all of your other possibilities, as discussed with a tax professional. END
 TITLE: Discharged Debts in Bankruptcy May Return on Credit Report CONTENT: Can Discharged Debts Spring Back to Life?\n-----------------------------------------\n###### Written by: Kristy Welsh\n_Last updated: July 13, 2017_\nWe have heard a lot of horror stories where debts potentially forgiven by bankruptcy courts have been sold by Bank of America to junk debt buyer, CACH, LLC. Based on letters from readers, this practice continues today. We'll summarize the main points for you in the next few paragraphs and add some additional information.\nThe sad, rather frightening thing is that many of these consumers are actually giving in and paying off debts they no longer owe. In a recent Business Week article, it was reported that Capital One continued to report a man's discharged debt to credit bureaus as a live balance. When the man tried to close on a mortgage for a new home, the lender informed him that he would either have to pay his debt to Capital One or show proof from the credit-card company that it had been discharged.\nCapital One had never revised the credit report, a failure that is not uncommon by creditors. Through his attorney, he attempted to get Capital One to correct his credit report, but finally gave in and paid Capital One the debt he no longer legally owed. A motion in bankruptcy court was filed claiming Capital One had failed to update his credit report. A U.S. bankruptcy judge agreed.\nKnow Your Rights if Your Debt has Been Discharged in Bankruptcy Court\n---------------------------------------------------------------------\nThe law is quite clear as far as defining what the debtor can do if a creditor attempts to collect a discharged debt after the case is concluded. If a creditor attempts collection efforts on a discharged debt, the debtor can file a motion with the court, reporting the action and asking that the case be reopened to address the matter.\nThe bankruptcy court will often do so to ensure that the discharge is not violated. The discharge constitutes a permanent statutory injunction prohibiting creditors from taking any action, including the filing of a lawsuit, designed to collect a discharged debt. A creditor can be sanctioned by the court for violating the discharge injunction. The normal sanction for violating the discharge injunction is civil contempt, which is often punishable by a fine.\nWhat is less clear is how to enforce the obligation that creditors have to inform credit bureaus that accounts that have been discharged by bankruptcy have a zero balance, as it is not currently included in any statute. The Fair Credit Reporting Act requires credit bureaus to ensure \"maximum possible accuracy\" of their reports. Unfortunately, the bureaus are allowed to rely on lenders to provide consumer's debt information. Given the ambiguity not surprisingly bankruptcy judges are divided on whether a creditor's failure to update a consumer's credit report should be considered an improper attempt to collect.\nWhy is it Happening if it is Illegal?\n-------------------------------------\nAccording the the Business Week article, since the 1990's firms that track and trade consumer debt have been expanding their portfolios to include accounts involved in bankruptcies, a now robust market. Although some of the trade in the bankruptcy paper involves collectible debt, much of the market now also includes billions in discharged debts, technically with no dollar value.\nThe Business Week article further states that owners of these cancelled liabilities \"can revive their value in two main ways: by directly pressuring consumers to cough up cash or by gaming the credit system, as allegedly happened in the Rathavonga case.\"\nA second example provided by the article is the case of Belinda Hedge, who filed for protection from creditors in November 2005. In March 2006, the majority of her debt including several credit card accounts with Capital One totaling $2,414, were discharged by the U.S. bankruptcy court in Tennessee.\nSubsequent to the discharge, according to Hedge, Capital One and other debt collection agencies attempted to make contact with her over 140 times by telephone and mail to collect on one of the debts, a clear violation of the bankruptcy injunction. Despite providing the company and collectors court records from the bankruptcy, they continued to make contact. A Capital One spokeswoman attributed the collection efforts \"to the lender's failure to update Hedge's credit report to reflect the discharge,\" stating that it will correct the error.\nAccording to Brian Budsberg, a Tacoma Washington U.S. bankruptcy trustee, Ms. Hedge's experience is not uncommon, stating that \"his impression is that the number of debtors alleging collection abuse is greater than it has ever been,\" adding that he has observed \"an emboldened attitude by the collection arms of credit card companies and debt buyers.\" There has been a surge in the growth of businesses sometimes called Junk Debt Buyers or JDB's in recent years which includes the trading of discharged debts as well.\nWith Chapter 7 debt growing in our current economy, sales of Chapter 7 debt is growing as well. In order to be successful in the JDB market, companies must buy debt very inexpensively, even at a fraction of a cent, according to the Business Week article.\nHow to Avoid This Happening to You\n----------------------------------\nWell, stay out of debt is a good start, but of course that is sometimes easier said than done. Know your rights if you file bankruptcy and succeed at having your debts discharged; creditors are notified by the court both when a consumer files bankruptcy, and again when a discharge is granted.\nFor further information regarding discharge in bankruptcy, go to uscourts.gov. You can also read our articles in our bankruptcy section. END
 TITLE: Cancellation of Debt 1099-C IRS Tax Form CONTENT: When is a 1099-C Issued For Debt Settlement?\n--------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 19, 2017_\nIf and when you settle a debt for less than what you owe, it feels like a done-deal to be celebrated. But temper that sigh of relief with the knowledge that, though you may no longer be required to pay back said debt, the IRS expects you to claim that amount as income. How can they possibly know how much of your debts have been forgiven? The creditor who forgave the debt will issue you a 1099-C form. They're not doing this to get even. Creditors are required to file this form with the IRS under certain circumstances surrounding cancellation of debt.\nWhat is a 1099-C Form?\n----------------------\nA 1099-C is a cancellation of debt form filed with the IRS by a creditor that has either 1) reached a settlement with a debtor for less than was originally owed, or has 2) forgiven the entire debt, concluding it will never be able to collect the debt.\nWhat Sort of Debt Qualifies for Inclusion on a 1099-C Form?\n-----------------------------------------------------------\nDebt that may be claimed on a 1099-C form includes stated principal, stated interest, fees, penalties, administrative costs, and fines.\nWhat is the Significance of a 1099-C Form to the Debtor?\n--------------------------------------------------------\nIf and when a creditor issues a 1099-C in your name to the IRS, whatever amount is included on the form is considered income that you must claim and pay taxes on.\nWhen is a Lender Required to File a 1099-C?\n-------------------------------------------\nCreditors must file a 1099-C with both the IRS and with the debtor for all debts of $600 or more under the following circumstances:\n1.  Cancellation or extinguishment making the debt unenforceable in a receivership, foreclosure, or similar federal or state court proceeding.\n2.  Cancellation or extinguishment when the statute of limitations for collecting the debt expires, or when the statutory period for filing a claim or beginning a deficiency judgment proceeding expires. Expiration of the statute of limitations is an identifiable event only when a debtor's affirmative statute of limitations defense is upheld in a final judgment or decision of a court and the appeal period has expired.\n3.  Cancellation or extinguishment when the creditor elects foreclosure remedies that by law end or bar the creditor's right to collect the debt.\n4.  Discharge of indebtedness by agreement between the creditor and the debtor to cancel the debt at less than full consideration.\n5.  Discharge of indebtedness because of a decision or a defined policy of the creditor to discontinue collection activity and cancel the debt. A creditor's defined policy can be in writing or an established business practice of the creditor. A creditor's practice to stop collection activity and abandon a debt when a particular nonpayment period expires is a defined policy.\n6.  The expiration of nonpayment testing period. This event occurs when the creditor has not received a payment on the debt for a 36 month period beginning on December 31st. (this 36 month period is rebuttable by creditor based on facts and circumstances)\nWhat Information is Included on a 1099-C Form?\n----------------------------------------------\n1.  Date debt was canceled.\n2.  Amount of canceled debt.\n3.  Amount of canceled debt attributable to principal only, reduced by any amount received by lender in satisfaction of debt.\n4.  Description of origin of debt (i.e., student loan, mortgage, or credit cards).\nAm I Required to Report as Income an Amount Filed Via a 1099-C by a Collection Agency, or Only if it is Filed by the Original Creditor?\n---------------------------------------------------------------------------------------------------------------------------------------\nIt depends on whether or not the collection agency can prove you owe the debt, which they may not be able to do since your account may have been transferred so many times that the proof of your debt has been left behind in the process.\nDebt validation is key. If the collection agency cannot prove that you owe the debt, but they have filed a 1099-C, you may include with your tax return a letter stating that said agency has no proof that you owe the debt.\nCan a Collection Agency Issue a 1099-C?\n---------------------------------------\nThe latest trend for collections firms is to issue a 1099-C. Can they do this? The IRS is not clear on their answer to this question. You might want to read this thread in our discussion forums.\nI filed Bankruptcy Can They File a 1099-C on Discharged Debts?\n--------------------------------------------------------------\nNo, they cannot. However, you must file a form. Title 11 of the bankruptcy code states you can file form 981 to get rid of the debt. END
 TITLE: Defend Yourself in a Debt Lawsuit CONTENT: How to Fight and Win a Debt Lawsuit\n-----------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 13, 2017_\nThe New York Times ran a story about the recent surge of credit card debt lawsuits being filed and compared this epidemic to the \"robo-signing\" fiasco which plagued the mortgage industry. Now it seems the debt collection industry has taken up \"robo-lawsuits\" and are filing hundreds of lawsuits A DAY, assuming that 99 percent of the Defendants will not answer.\nIf you are being routinely hounded by a debt collector, chances are you are going to be slapped with a lawsuit at any time. So, what can you do if you are being sued by a collection agency? We have some tips for you to fight and defend yourself against a debt lawsuit.\nAnswer the Debt Lawsuit\n-----------------------\nIf you were served a Summons and Complaint, you MUST respond to it. The number one mistake people make when they are sued is failing to respond to the notice. If you owe the debt or even if you think you are being sued in error, you have to respond to these allegations in the form of an Answer. Failing to do so will give the debt collector the opportunity to file a default judgment against you, which will open up an entirely new can of worms. The collector can now try to garnish your wages, take money out of your bank account, try to collect attorney's fees and court costs, and\/or collect interest charges.\nEven if you owe this debt, a two-sentence response denying liability to the lawsuit filed in court will likely lead to a negotiated settlement and save you money in the long run. When you do respond to them, it will force the debt collector to either back down or offer a settlement. The debt collector is betting you will not file an Answer to his Summons and Complaint so when you do, they are actually surprised and not really wanting to spend much money on collecting from you. This is why if you deny liability they will pretty quickly try to settle the debt lawsuit with you.\nChallenge the Debt Lawsuit\n--------------------------\nChallenge the debt collector's, or Plaintiff's, ability to file this lawsuit against you in the first place. Credit card debt is almost always bought for pennies on the dollar by a collection agency who in turn is going to try to sue you to collect the money owed. Bottom line, the collection agency needs to prove they have the right to collect this debt as evidence by a transfer of the signed credit card agreement. We can bet 99.9 percent of the credit card debt is not properly transferred to the collection agency in this manner.\nSo, you are going to ask the court to dismiss the case because the Plaintiff does not have the \"chain of custody\" paperwork giving them the right to collect this debt from you. A lot of judges will look at the paperwork that debt collectors provide and tell the Plaintiff they must be kidding — and dismiss the case.\nMake the Plaintiff Prove What You Owe\n-------------------------------------\nMore often than not, your debt has changed hands multiple times before the current collection agency purchased it and is now suing you for it. So, you will want the Plaintiff to provide the ORIGINAL signed agreement and a balance on the account from zero to the present. We are going to bet doughnuts to dollars the collection agency will only have a portion of the statements and they most certainly will not have the original signed agreement.\nIt will be this lack of documentation from the Plaintiff that can get your case dismissed. If the Plaintiff can not prove what you owe, the judge will not be able to make a ruling and will throw the case out.\nUse the Statute of Limitations as a Defense\n-------------------------------------------\nAs we mentioned before, a collection agency is betting the borrower will not respond to their lawsuit and they will be awarded a default judgment. Therefore, creditors don't always stop to see if they can actually legally sue you for this debt, i.e., if the Statute of Limitations has run out on this debt. In most states, creditors have a maximum amount of years they can legally sue you for this debt. After that, the Statute of Limitations expires and the collector will lose.\nIf the Statute of Limitations has expired, you can use this a defense and get your lawsuit dismissed. Every state's statute on debt is different, so see our page which lists out each state's limits on debt collection.\nSue Your Creditor\n-----------------\nThis is an idea we talk about very often on our website. If a debt collector has violated any of the provisions in the Fair Debt Collection Practices Act (FDCPA), you may be able to sue them and be awarded damages. Consumers can successfully sue for violations of the debt collections practices act and are entitled to statutory damages of $1,000, plus punitive and economic damages. To read more on this topic, you can purchase our eBook entitled How to Sue Your Creditors.\nFile For Bankruptcy\n-------------------\nWe are not advocating to file bankruptcy, as this type of decision should be at the very least, talked over with a qualified bankruptcy attorney. But, if the debt you are being sued for is so large or if it is just one of many debts you owe, it may make sense to file bankruptcy. When you do, you will be protected by the automatic stay, which will halt any and all debt collection efforts being made against you. If you are thinking about filing bankruptcy, talk to an attorney as soon as you are served with a Summons and Complaint. Don't wait until the day you are suppose to be in court!\nHopefully these tips have given you the confidence you need to stand up to a debt collector's lawsuit. Being served with a lawsuit is not the end of the world and more often than not, you can beat the debt collectors at their own game. Being an informed consumer is the one thing the debt collectors did not count on, so do your homework and you will be victorious. END
 TITLE: Protect Yourself From Zombie Debt and Debt Collectors CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 16, 2017_\nWhether you are just embarking on the credit repair process, or your credit is in tip-top shape, the last thing you want or need is some old and moldy debt rearing its ugly head. Believe it or not, debt that may have fallen of the credit reporting radar long ago can come back to haunt you in the form of zombie debt.\nWhat is Zombie Debt?\n--------------------\nWhen a person does not pay on a debt, the lender has numerous ways in which they can try to collect the debt from you. Once they give up on you, they mark the account as a charge off and sell it to a debt collector for pennies on the dollar. Fast forward a few years and now this debt is snatched up by a debt \"scavenger\" who buys up these very old debts in hopes of bullying or tricking you into paying on it. This is usually debt you've forgotten about it, or debt you don't recognize because it was never yours in the first place.\nAre You Legally Responsible For Zombie Debt?\n--------------------------------------------\nZombie debt is usually debt where the statute of limitations has passed, meaning you are no longer required to pay it. Also, in some cases, the debt buyers are unaware when a debt has been discharged in bankruptcy, again freeing you from any responsibility for the debt. Finally, zombie debt may simply be a case of mistaken identity; either they think you are someone else who actually does owe the debt, or you may be a victim of identity theft.\nHow Do Debt Scavengers Buy Zombie Debt?\n---------------------------------------\nDebt buyers purchase the old debt from the company that was the last to own it. This may be the original creditor, or it may be another debt buyer. In either case, the previous owner of the debt deems it uncollectible, so they sold the debt to a company that wants to give it a try. \nWhat Price Do Debt Scavengers Pay for Zombie Debt?\n--------------------------------------------------\nIt is common practice for debt collectors to purchase debt from original creditors for pennies on the dollars. In the case of zombie debt, though, debt scavengers may pay less than a penny per dollar owed. Why? The older the debt, the less collectible it is and, in turn, the cheaper its going rate.\nWhat Types of Debt is Zombie Debt?\n----------------------------------\nInitially, debt buyers focused on old credit card debt. But beware of collection efforts on other types of debt that you may not be legally required to pay, such as mortgage loans, auto loans, or medical bills.\nWhat is the Statute of Limitations on Collecting Debts?\n-------------------------------------------------------\nThe statue of limitations varies by state and type of debt and you can find out yours by checking out our state by state listing and act accordingly. Zombie debt collectors are counting on you not knowing that the statute of limitations has run out on the debt they are trying to collect from you.\nIf a Debt Collector Offers to Accept a Small Payment in Exchange for Forgiving an Old Debt, Should I Do It?\n-----------------------------------------------------------------------------------------------------------\nNo, at least not before you have asked for and received validation of the debt, including its age. If the SOL has expired, you are not required to pay. In fact, if you make a payment or even a promise-to-pay, it will re-age the account, and the statute limitations starts all over again.\nCan I Try to Validate the Debt?\n-------------------------------\nGet the address of the debt collection agency that has bought your account. Write them a letter requesting validation, including a copy of the original contract, date and details of your last payment made, and proof that the company does, indeed, own the debt. If they cannot provide validation, or the validation proves the debt has reached the statue of limitations, you are no longer legally responsible for the debt. This is an extremely effective means of dealing with debt scavengers, as they rarely receive the supporting information and documentation they need to prove the debt.\nWhat Tactics Will Zombie Debt Collectors Use?\n---------------------------------------------\nDebt scavengers know that most of the debt they buy is on accounts for which the borrowers are no longer legally responsible. For this reason, they prey on ignorance and fear. Common tactics include:\n*   Offering to stop collecting on the debt, or promising not to report it to the credit agencies, if you will just make one small, good-faith payment. This is a bad idea, as making a new payment re-ages the debt, resetting the statute of limitations. This means the collector then has the right to sue you for the full amount. As for reporting to the credit agencies, it is illegal for collectors to report a negative listing on a debt for which the statute of limitations has run out.\n*   Threatening to sue you if you do not pay the debt. Provided the statute of limitations has been reached, it is illegal for them to sue you anyway. The same is true of bankruptcy charge offs or debt that they cannot prove belongs to you.\n*   Using abusive language to bully you into making a payment, which is a violation of Fair Debt Collection Practices Act.\n*   Referring to themselves as a litigation firm. Most zombie debt collectors are not lawyers.\nWhat if I Receive Notice a Debt Collector is Suing Me For a Zombie Debt?\n------------------------------------------------------------------------\nDon't believe it, but don't ignore it either. Through a third-party resource, such as the internet or a phone book, get the address and phone number for the court through which the lawsuit has supposedly been filed (as the debt buyer could very well have used a bogus address and phone number for the bogus filing). Contact the court and verify that the lawsuit is, indeed, legitimate. If it's not, file a complaint with the FTC. If it is legitimate, go through the debt validation process. If the debt, indeed, can be proven you may want to enter into negotiation with the debt collector. Either way, if a debt collector is suing you, it is in your best interest to consult an attorney to walk you through the process.\nWhat if a Zombie Debt Collector Calls Me?\n-----------------------------------------\nAsk for their address and then hang up immediately without divulging any information whatsoever. Once you have their address, write them a letter requesting validation of the debt and to stop calling you.\nWhat are Zombie Debt Collectors Legally Prohibited From Doing?\n--------------------------------------------------------------\nCollectors of zombie debt may not report your old debt to a credit reporting agency, or threaten to sue you for the debt, provided it is debt that has already reached its statue of limitations.\nIf It's So Hard for Debt Collectors to Validate Zombie Debt, Why Do They Even Bother?\n-------------------------------------------------------------------------------------\nDebt scavengers are able to purchase zombie debt at such a low price that they can make a pretty penny even if just a fraction of people pay. Collecting on these debts is big business, at $3 billion a year.\nWhat is My Best Defense Against Zombie Debt Collectors?\n-------------------------------------------------------\n**Knowledge is King**. You need to know your rights and, most importantly, you need to exercise them. You do not have to talk to debt collectors on the telephone. After getting their address, hang up. You can then send them a letter requesting validation of the debt. If they are unable to provide proof, you are not legally required to pay it. And if and when a debt collector crosses the legal line, report them to the FTC and\/or seek legal counsel. END
 TITLE: IRS Hires Collection Agencies to Collect Tax Debt CONTENT: How IRS Hiring of Collection Agencies Could Affect You\n------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 20, 2017_\nIf you owe back taxes to the IRS, a change in federal tax collection should be of interest to you. Starting April 2017, the Internal Revenue Service is turning some overdue accounts over to private collection agencies. Find out how this change in federal tax collecting could affect you.\n**Which taxpayers are affected?**\n---------------------------------\nIf you have tax debt going back several years, you could see your account turned over to a private collection agency. However, the IRS states on its website that this does **_not_** apply to taxpayers who are:\n*   Subject to pending or active offers in compromise\n*   Subject to an installment agreement\n*   Subject to a right to appeal\n*   Classified as innocent spouse cases\n*   Victims of tax-related identity theft\n*   In designated combat zones\n*   In presidentially declared disaster areas and requesting relief from collection\n*   Currently under examination, litigation, criminal investigation or levy\n*   Under the age of 18\n*   Deceased\nAnd even if your account is turned over to a private collection agency, it would return to IRS management if your circumstances change to reflect any of the scenarios listed above.\n**How will affected taxpayers be notified?**\n--------------------------------------------\nIf your account is turned over to a private collection agency, expect to receive two letters:\n1) Letter from the IRS, which should include:\n*   Notification that your account has been transferred to a private collection agency\n*   Name of the collection agency\n*   How much you owe\n*   Your unique taxpayer authentication number\n*   Copy of IRS Publication 4518, What You Can Expect When the IRS Assigns Your Account to a Private Collection Agency\n2) Letter from the private collection agency, which should include:\n*   Name of the collection agency\n*   How much you owe\n*   Your unique taxpayer authentication number\n**What if you question the debt or the amount?**\n------------------------------------------------\nDo the same thing you would do with any other type of debt collector. The FTC advises you to write to the collection agency and request debt validation.\nYou can also check your account balance at IRS.gov\/balancedue.\n**Which agencies are collecting debt for the IRS?**\n---------------------------------------------------\nThe IRS has selected four private collection agencies to work with, one of which will be assigned to you:\n**CBE**  \nP.O. Box 2217  \nWaterloo, IA 50704  \n1-800-910-5837\n**ConServe  \n**P.O. Box 307  \nFairport, NY 14450-0307  \n1-844-853-4875\n**Performant**  \nP.O. Box 9045  \nPleasanton CA 94566-9045  \n1-844-807-9367\n**Pioneer**  \nPO Box 500  \nHorseheads, NY 14845  \n1-800-448-3531\nIf you’re not happy with the collection agency assigned to you, you’re not stuck with them. As stated on the IRS website, \"If you do not wish to work with the assigned private collection agency to settle your overdue tax account, you must submit a request in writing to the private collection agency.\"\n**How can you spot scams?**\n---------------------------\nThe IRS is already anticipating fraudulent phone calls to taxpayers trying to take advantage of this new debt collection process. If you get a call, the FTC says to watch for these red flags:\n*   Calls made from a collection agency before you have had any prior contact from the IRS about the debt. Forbes says the IRS will try to contact you multiple times before transferring your debt to a collection agency.\n*   Robocalls or pre-recorded messages. If the collection agency calls you, it will be a live person.\n*   Requests for credit card, debit, gift card, or wire transfers. The private collection agencies hired by the IRS will only instruct you to pay one of two ways – 1) online via IRS.gov\/payments, or 2) by sending a check directly to the IRS, made out to the United States Treasury.\n*   Inability to provide you with the unique taxpayer authentication number sent to you in the two letters notifying you of the new collection activity\n**Why is this happening now?**\n------------------------------\nOn December 4, 2015, President Obama signed the Fixing America’s Surface Transportation Act (FAST Act), which requires that the IRS use private collection agencies for some federal tax debts.\n**What if your debt collection rights are violated?**\n-----------------------------------------------------\nAll private debt collectors are subject to debt collection laws. Those collecting on behalf of the IRS are no exception. As stated in Publication 4518:\n\"Private collection agencies under contract with us to collect overdue tax accounts are, with some exceptions set forth in the Internal Revenue Code, required to conform to the rules, regulations, and provisions of the Fair Debt Collection Practices Act. Specific provisions of this act prohibit private collection agencies from threatening or intimidating taxpayers.\"\nAnd these private collection agencies are not authorized to take any enforcement action against you (though the IRS certainly can, such as filing a lien or issuing a levy).\nIf you believe the private collection agency assigned to you has violated your rights, submit a complaint to the Treasury Inspector General for Tax Administration (TIGTA):\n*   Online at TIGTA.gov \n*   Write to:\nTreasury Inspector General for Tax Administration Hotline  \nPost Office Box 589  \nBen Franklin Station  \nWashington, DC 20044-0589\n**Where can you turn for help if you can’t pay and can’t afford an attorney?**\n------------------------------------------------------------------------------\nIRS Publication 4518 refers taxpayers to:\n*   Taxpayer Advocate Service\n*   IRS Publication 4134 for a list of Low Income Taxpayer Clinics (LITCs)\n*   Directory of Federal Tax Return Preparers\n*   Referral system operated by your state bar association, state or local society of accountants or enrolled agents, or another nonprofit tax professional organization\nWhatever you do, don’t ignore these collection attempts. And even if your account hasn’t been turned over to a collection agency, don’t wait to take care of back taxes. The sooner you can work something out — either through a private collection agency or directly with the IRS — the sooner you can start getting out of debt, repairing your credit, and realizing your financial goals. END
 TITLE: Consumer Credit Counseling Service Rep Letter CONTENT: Consumer Credit Counseling Service Correspondence\n-------------------------------------------------\n###### Written by: Kristy Welsh\nLetter From CCCS\n----------------\nMy name is Treg Hansen, Marketing and Education Director for Consumer Credit Counseling Service of Idaho.\nI would like to clarify some of your comments about our services. There are some statements that I would like to address.\n1\\. On your page about our organization, you stated that clients who utilize our Debt Management Program are ruining their credit. You stated that they will have 30, 60, and 90 day lates because of a lower payment. You also implied that our sole function is to lower payments.\nThe truth is most clients who walk in our door already have 30, 60 and 90 day lates on their credit report. The only time this will show on their credit report is if the client does not make their payment on time, or they miss their scheduled payment. At CCCS we negotiate with creditors to have interest waived or reduced as well as late and over limit fees eliminated. Not all creditors negotiate in all of these areas but a majority do. This is how we are able to help the public pay off their debts in a shorter period of time.\n2\\. You also compared the CCCS Debt Management Program to a Chapter 13 bankruptcy.\nThere is a vast difference between our Debt Management Program and aChapter 13 bankruptcy. In our program, the client pays off all their balances and not just a portion as with the 13BK. Also, people who are on the program do buy houses, cars, and establish credit when they demonstrate the ability and stability to do so.\n3\\. On your Alternatives To Filing Bankruptcy page, I thank you for recommending CCCS. However, on your Consumer Counseling Services page you stated, \"I usually don't recommend Consumer Credit Counseling Services, because it ruins your credit.\"\nAt CCCS we help people take financial responsibility for their debts. We help citizens avoid bankruptcy, which helps all of us. We are a non-profit community service organization that is committed to educating the public about family finance topics. We offer free workshops on various topics that include, but are not limited to: Couples and Money, MoneyManagement, Budgeting, Credit, Buying a Home, Balancing your Checkbook,and Cutting Expenses. We go to high schools, businesses, prisons, and local libraries to educate on several credit-related issues.\nWe at CCCS are trying to educate and dis-spell some of the myths about our organization and would be happy to answer any of your questions.I am pleased that there are sites like yours because, we need all the help we can get.\nI personally work for this company because I am able to help people,which is very rewarding.\nSincerely,\nTreg R. Hansen\n**Note:** Unfortunately, since the receipt of this letter, their office has since closed. END
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 TITLE: Discharge Student Loans in CH 7 Bankruptcy CONTENT: Can a Student Loan be Discharged in Chapter 7 Bankruptcy?\n---------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 18, 2017_\nThe topic of student loans and student debt is now at the forefront of the conversation about overall consumer debt in America. Student loan debt is now larger than credit card debt with a collective $1.4 trillion burden of debt and student loan delinquency rate is now 11.2 percent (90+ days delinquent or in default). It is no wonder the question of whether or not student loans can be included in a Chapter 7 bankruptcy comes up all the time.\nPrivate student loans are generally non-dischargeable in a Chapter 7 bankruptcy. That being said, on February 6, 2013, U.S. Congressmen Steve Cohen (D-Tenn.) introduced H.R. 532: Private Student Loan Bankruptcy Fairness Act of 2013, which proposed amending the U.S. Bankruptcy Code to modify the ability to discharge certain debts for educational payments and loans. This particular bill died in Congress but Congressman Cohen re-introduced the same concept in H.R. 2527: Private Student Loan Bankruptcy Fairness Act of 2017. This bill is currently in the House under debate.\nCan a Student Loan be Discharged?\n---------------------------------\nIt used to be that private student loans could be discharged in bankruptcy. But, after the signing of the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act, Congress stated that student loan borrowers would be required to file an \"adversary proceeding\" (a type of lawsuit within a bankruptcy case) to prove undue hardship in order to get their loan forgiven. Even being able to do this, many people have thought it darn near impossible to discharge their student loan and don't even try. This has left many just living with this overwhelming burden of debt.\nJason Iuliano, a Harvard Law School professor, took a closer look at student loan discharges in bankruptcy and his findings were shocking. He found four out of 10 people who attempted to discharge their loan were successful. That may not seem like great odds, but everyone once thought their chances were nil at best. The most shocking finding was that 99.9 percent of student loan debtors in bankruptcy never even tried to get a discharge.\nProving Undue Hardship\n----------------------\nThe number one reason a person will be successful in getting their student loan discharged is being able to prove undue hardship. In a Chapter 7 bankruptcy, an undue hardship has these characteristics:\n1.  The debtor is less likely to be employed.\n2.  The debtor is more likely to have a medical hardship.\n3.  The debtor is more likely to have lower annual incomes the year before they filed for bankruptcy.\nFurthermore, in order to pursue a successful claim to discharge the loans in bankruptcy, the debtor should be able to show;\n1.  a current inability to repay the loans,\n2.  a future inability to repay the loans, and\n3.  a good faith effort to repay the loans.\nIf you can successfully prove undue hardship, your student loan will be completely canceled. If you cannot prove due hardship, you might want to consider repaying your student loans through a Chapter 13 bankruptcy plan. As always, it is best to get advice from a qualified bankruptcy attorney so you understand and can take full advantage of your options. END
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 TITLE: Consumer Credit Counseling Service - Get the Facts CONTENT: Understanding Consumer Credit Counseling Services\n-------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 13, 2017_\nMany people are so far in debt they don't really know what steps to take to get themselves out of debt. If you ever visited our discussion forums, the most active category is the debt settlement forum, with hundreds of people asking and answering questions every day about debt and how to get out of debt. One service out there for people to use is called Consumer Credit Counseling Services (CCCS). But how do you know if this is right for you? Read on.\nBack in 1951, the National Foundation for Consumer Credit (NFCC) was founded to promote credit and financial awareness in response to a new product called credit cards. Soon after, credit counseling emerged as part of the NFCC's nonprofit services and individual CCCS offices began opening up all over the country. These office were independently operated but all under the central membership of the NFCC.\nIn 1993, the Financial Counseling Association of America (FCAA) was founded and offered an alternative to the NFCC. CCCS offices can be members of either parent organization or both and all offer free of charge debt counseling to consumers.\nHow Does Consumer Credit Counseling Work?\n-----------------------------------------\nConsumers who call a CCCS office talk to a certified counselor in a confidential, non-judgmental 45 to 90 minute session. The counselor offers expert advice along with a workable budget based on the client's financial situation. Using this information, the counselor offers a realistic plan for paying down debt, increasing savings, and improving the client's overall financial situation. This session is free of charge and carries no obligation.\nSometimes this initial session may be all you need to get your debt under control. But if not, you may need to enroll in a debt management program.\n### Debt Management Program\nIf you need more assistance after your initial session with a CCCS counselor, you may need to enroll in a debt management program. This program combines your debts into one monthly payment that you make to the agency. This how it works:\n**Process:** A debt management plan is an agreement worked out between a credit counseling agency and your creditors. A debt management plan can only be used on **unsecured debt**, such as credit card debt. The credit counseling can usually get some concessions from your creditors, such as a reduction in interest rates or an elimination of late fees. As part of a debt management plan, you need to close your credit card accounts. All of your payments are then combined into one large payment you make to the counseling agency. The agency then distributes the appropriate payments to your creditors.\n**Cost:** Usually there is a program setup fee and a monthly fee. These fees vary depending on the state you live in and your income. Generally, waivers are available if you earn up to 150 percent of the poverty line. Additionally, most agencies have a cap on their fees.\n**Risk:** A debt management program isn't as risky as some other options for managing your debt, such as debt consolidation. A debt management program will impact your credit score because you will need to close your accounts. This is short lived, but it could affect your ability to get loans while you're enrolled in the program. In the long term, using a debt management program can help your credit score by reducing your debt load.\nHow to Evaluate a Good CCCS Agency\n----------------------------------\nAs with anything, it is a good idea to do some checking around before you sign up with a CCCS agency. Not all are the same and the differences between them can be staggering. Call or visit numerous agencies to see which one is a good fit for you. Here are some things to look for:\n*   They give you a full breakdown of your debts and income, and they work with you to establish a budget, send follow up materials and recommend alternatives to a debt management plan.\n*   They propose a debt management plan as just one of many options for managing heavy debt.\n*   They provide numerous educational resources, such as calculators and budgeting tools, to help you learn about finances and managing your money. \nCCCS Agencies We Recommend\n--------------------------\nAccording to numerous sources, here is a list of some recommended Consumer Credit Counseling Services.\n*   ClearPoint Credit Solutions\n*   Springboard\n*   AAA Fair Credit Foundation\n*   American Consumer Credit Counseling\n*   InCharge Debt Solutions\nIt may take a little time to investigate potential CCCS agencies to use, but the investment in time will be worth the investment in your financial future. END
 TITLE: Fair Trade Commission Debt Consolidation Company Regulations CONTENT: FTC Debt Consolidation Company Rules and Regulations\n----------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 14, 2017_\nWhile many Americans struggle to pay their credit card bills, a lot of them turn to businesses offering debt relief services. These are for-profit companies that say they can renegotiate what consumers owe or get their interest rates reduced. In response to this growing business model, the FTC (Fair Trade Commission) put together the Debt Relief Rules which took effect October of 2010. The regulations are very comprehensive and are aimed to curb deceptive and abusive practices associated with debt relief services offered by debt consolidation companies.\nFor-Profit Companies Required to Give Upfront Disclosures\n---------------------------------------------------------\n*   **_Proposed fees must be disclosed along with refund policies._** They can't get away with estimates or potential ranges of fees. Instead, the proposed fees must be must be based on real results based on experiences with individual creditors.\n*   **_Time to get through the program._** Just as in a mortgage, consumers must be given a good faith estimate describing how long it is likely to take to settle their debts based on their debts, and their ability to save money to settle.\n*   _**Savings required.**_ Firms must accurately estimate how much money prospective clients will have to save up in order to settle. The figures must be based on actual settlements they have made for other clients.\n*   **_The negative effect on credit._** Consumers must be given warnings that include the likely damage to their credit reports, the potential risk of lawsuits, and possible tax consequences.\nAccurate Estimate of How Much Money a Consumer Will Save\n--------------------------------------------------------\n*   Claims about how much money consumers can save must be based on the firm's actual experience with all clients, not just the \"best\" examples.\n*   Experts have estimated that about 60 percent of customers end up ditching the program before it's over. Firms must accurately estimate the success rates of their clients.\nSavings Accounts Must be Held in an Insured Financial Institution\n-----------------------------------------------------------------\nIn times past, payments consumers make to the debt settlement firm went into an escrow account, though many firms labeled it as a savings account, a misleading term since there was no savings account opened at a real bank. Under the new rules:\n*   The dedicated account is maintained at an insured financial institution;\n*   The consumer owns the funds (including any interest accrued);\n*   The consumer can withdraw the funds at any time without penalty;\n*   The provider does not own or control or have any affiliation with the company administering the account; and\n*   The provider does not exchange any referral fees with the company administering the account.\nNo Upfront Fees\n---------------\nThe debt settlement firm must wait until one of the following occurs before they collect any fees.\n*   The debt relief service successfully renegotiates, settles, reduces, or otherwise changes the terms of at least one of the consumer's debts;\n*   There is a written settlement agreement, debt management plan, or other agreement between the consumer and the creditor, and the consumer has agreed to it; and\/or\n*   The consumer has made at least one payment to the creditor as a result of the agreement negotiated by the debt relief provider.\nIf you do find yourself signing up with a firm and they are not following these regulations, do not hesitate to report them to your state attorney general's office or file complaint with the FTC. END
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 TITLE: Pros and Cons of Debt Consolidation CONTENT: Using a Debt Consolidation Company to Consolidate Your Debt \n------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Update: June 12, 2017_\nIt seems these days that more and more Americans are falling further into debt. If you have fallen behind on your payments, it can feel like there’s nowhere to turn for help. One possible option to get organized and streamline your bills is to go the route of debt consolidation. Debt consolidation lets you roll several debts into one loan with a lower interest rate and longer payment term. That means you’ll pay less each month to just one lender instead of making payments to multiple creditors.\nWhile it’s not as drastic as debt settlement or debt management, debt consolidation has its own pitfalls that you need to be aware of. If you need help educating yourself on your debt consolidation options, read on.\nWhat is Debt Consolidation?\n---------------------------\nDebt consolidation is when you consolidate your debts by taking out a new, bigger loan to pay off a bunch of your existing debts. Instead of paying several different creditors, you’ll be paying a single bill for the new loan. Your monthly payment will likely be lower with the new single loan than the combined payments of your previous debts. Unlike debt settlement, you do not actually reduce the principal amount you owe — you will still be paying the full amount.\nDebt consolidation is not without risks. Experts warn against consolidation unless you’re truly struggling to make minimum payments on your debts each month and are ready to turn over a new leaf with your spending habits. Here are the pros and cons of debt consolidation.\n### Pros\n*   **Short-term relief.**  A single loan with a lower interest rate, spread out over a longer term, can drastically reduce the amount you pay each month.\n*   **It’s easier to stay organized.**  It can be hard to keep track of several bills and monthly due dates, leading to more late or missed payments, but it’s easy to remember to pay just one bill.\n*   **No damage to your credit.**  Debt consolidation keeps your credit intact since you’re still paying off all of what you owe. This isn’t always the case with debt settlement, debt management plans, and bankruptcy.\n### Cons\n*   **Long-term pain.**  Your lower monthly payment is usually the result of a longer payment term, not just a lower interest rate. In other words, instead of paying a lot for a short period, you’ll be paying a little for a long period. And you might be paying **much more** in interest over the long run, once it’s all said and done.\n*   **Big risks, depending on your new loan.**  If you use a secured loan to consolidate your debts, the collateral associated with that loan (for instance, your house) will be at risk if you can’t make your new payments. Falling behind on an unsecured loan isn’t as dire, but it could still trash your credit score.\n*   **You’re fighting debt with debt.**  While debt consolidation can work for the fiscally disciplined, bad habits might be the reason you’re considering consolidation in the first place. If you do not change your habits, you may end up much deeper in debt than you were before you consolidated.\nTypes of Debt Consolidation Loans\n---------------------------------\nThe first type of loan is a **secured loan** which is tied to some sort of collateral - a valuable asset that the lender can take in the event you no longer pay your bills. Common collateral includes your house or car. It’s easier to get a secured loan since there is less risk to the lender. For the same reason, it’s also usually easier to get a larger amount at a lower interest rate. The interest may also be tax-deductible.\nOf course, while it’s easier for you to land this kind of loan, you could also lose your assets if you default. You may also be paying down this kind of loan for much longer. Home equity loans are among the most common kind of secured debt consolidation loans.\nThe second type of loan is an **unsecured loan** which is not tied to collateral. Because of that, it’s less risky and if you default on this loan you are only risking credit damage instead of an asset. Unsecured loans also usually take less time to pay down.\nHowever, getting an unsecured loan is tougher, especially if you have bad credit. Because the lender takes on more risk with unsecured loans, you’ll probably be offered a higher interest rate and a smaller amount, and there are no tax benefits. Personal loans, credit-card balance transfers, and loans offered solely for the purpose of debt consolidation are among your options here.\nAlternatives to Debt Consolidation\n----------------------------------\nIf debt consolidation doesn’t seem quite right for your situation, there are several other debt-relief methods. Of course, all of these strategies have their own pros and cons, and only you can decide whether they are better or worse for your unique situation.\n*   Credit Counseling\n*   Debt Settlement\n*   Debt Management\n*   Bankruptcy\nAvoid Debt Consolidation Scams\n------------------------------\nIf you’re in the market for a debt consolidation loan, remember to keep your guard up. Unscrupulous companies target people seeking any form of debt relief, including personal loans. Here are some things to keep in mind:\n*   **You don’t need a middleman.**  Many companies that claim to offer debt consolidation actually are pushing debt management and debt settlement. If you are simply looking to consolidate, no one needs to negotiate with your creditors for any reason.\n*   **You should be the one to initiate contact.**  Shady lenders are more likely to aggressively search for and hound potential borrowers.\n*   **You shouldn’t pay upfront fees.**  You should never be charged simply to apply for a debt consolidation loan.\n*   **Be wary of guarantees.**  Legitimate lenders simply can’t guarantee that you’ll qualify for a personal loan without knowing your income, credit score, and other personal information. If you see such a guarantee, move along.\n*   **Reject scare tactics.**  Legitimate lenders will not discourage you from searching for the best deal or pressure you into borrowing more than you can afford.\n*   **Do your homework.**  Look at the company’s Better Business Bureau rating and any other online reviews you can find. Almost every company will generate complaints, but some will generate far more than others.\nDebt consolidation can be an excellent option if you’re ready to dig your way out of debt for good. A debt consolidation loan will allow you to stay organized and pay off your debt with a reasonable interest rate and affordable monthly payment. END
 TITLE: Pros and Cons of Debt Consolidation CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
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 TITLE: Help Finding a Good Debt Consolidation Company CONTENT: Tips for Finding a Reputable Debt Consolidation Company\n-------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 14, 2017_\nAre you carrying a large load of debt? Do you feel like you can never get out from under all of this debt? Does it seem no matter what you do, you can't get rid of all of this debt? These are thoughts shared by thousands of Americans who are in the same debt laden boat as you. This leads us to our next question: Are you thinking about using a professional debt consolidation company to get out of debt? If so, you better read this article on how to find a reputable debt consolidation company. \nHelpful Tips When Looking for a Debt Consolidation Company\n----------------------------------------------------------\n*   **Read the FTC Regulations** regarding debt relief, settlement and negotiation companies.\n*   **Locate a Local Consumer Credit Counseling Office.**  Of all the debt consolidation companies, in my opinion, they are the least harmful to you and your credit. The NFCC.org is a good place to search for the one nearest you, by zip code. Local companies are also a good idea because the local authorities have jurisdiction over them. They can do little if the company is out of state.\n*   **Check Out the Company with the BBB.**  You can check out any company you are thinking of signing up with immediately online. In addition, you should also call your state's consumer protection agency\/state attorney general's office to see if there have been complaints.\n*   **Evaluate Advertisements.**  Just because a credit counselor has a big advertising budget does not necessarily mean it is a good company! Also, you would be wise to ignore e-mails that arrive \"out of the blue\" from credit counselors offering their services. Good credit counselors often rely on past clients for referrals; they do not need to solicit business through constant television advertising, infomercials, telemarketing or spam e-mails.\n*   **Are They a Member of a Reputable Debt Consolidation Organization?** Check to see if the firm is a member of the National Foundation for Credit Counseling (NFCC) or the Financial Counseling Association of America (FCAA). Agencies that are members of these organizations must adhere to strict standards of professionalism and accreditation and use only certified credit counselors.\n*   **What are the Qualifications of Their Counselors?** Ask if the counselors are certified and by whom? Try to select an agency whose counselors are certified by an outside organization, preferably NFCC. One way to test a counselor's knowledge: debt consolidation monthly payment fees are subject to state law, and the agency representative should be able to tell you the specific regulations for your state of residence.\n*   **How are the Counselors Paid?**  Steer clear of organizations that pay employees a commission; that might well influence the number or nature of services they decide you need.\n*   **Are Their Services Personalized?** A cookie-cutter approach most likely will not address your financial situation. Find out if the counselor will devise a plan tailored to fit your personal circumstances. Also, think beyond your immediate credit\/debt problems and find out if the agency will offer you advice on avoiding problems in the future.\n*   **What About  and Security?** What assurances do you have that the agency will keep information about you confidential? Does the agency have a privacy policy and are you comfortable with its terms? If not, select another agency. Security practices are also of importance. How does the credit counselor protect the security of client information?\n*   **Make Sure They Provide Their Terms of Service in Writing.** Debt settlement firms are required to give you a good faith estimate regarding all fees, the time it will take to finish their program and how much money they can save you. Only do business with agencies that offer formal written agreements or contracts. Carefully read through the terms of agreement or contract. It should describe in straight-forward fashion the services to be performed, the counselor's name, business name, address and contact information.\n*   **What are Their Fees?** Fees are required to be presented to you up front. It is illegal for a firm to collect any money until some actual work is performed. If there are set-up fees or monthly service charges, the agency should explain what they are based upon. In general, you should not expect to pay more than $75 in set-up fees or make a monthly payment that exceeds $40. The agency should also be willing to advise you how your funds will be protected before payment to your creditors.\n*   **How are Payments Distributed to Your Creditors?** Your creditors should always be credited with one hundred percent of the amount you pay through a debt consolidation agency. Why would your money NOT go to your creditors? With unscrupulous firms the money gets eaten away by extra fees.\n*   **How is the Agency Funded?** Most credit counseling agencies are partially funded through voluntary contributions from creditors who participate in Debt Management Plans. (Creditors have a business interest in receiving their payments, so most of them are willing to help support participating credit counseling agencies.) Go elsewhere for assistance if the credit counseling agency refuses to discuss its funding sources. If the agency claims to be tax-exempt or not-for-profit, double-check with your state charity official (for contact information, visit the Web site of the National Association of State Charity Officials at ). Some credit counseling organizations using questionable practices have sought tax-exempt status in order to circumvent consumer protection laws. It is illegal for a company to represent itself as non-profit when that is not the case.\n*   **Do They Offer Budget and Credit Education?** Reputable organizations are willing to help you manage your finances through counseling and education. Ask if the agency offers workshops or educational materials. Are they available for free? Are they accessible online or can the materials be mailed to you? If the agency insists that a debt management plan is the only option for clients, look elsewhere. Creating and maintaining a budget should be a primary tool of the agency.\n*   **Where is the Debt Consolidation Firm Located?** Not all states require licensing for debt consolidation agencies. The most notable examples are the states of Maryland and Florida. In addition, some states have started licensing credit counselors. If you know your proposed counselor's name, another question to ask your state attorney general is whether or not he or she is licensed.\n*   **Look Before You Leap!** It is **crucial** to think things out carefully and do your homework before signing on the dotted line. _This contract will affect you, your credit and therefore your lifestyle for years to come._ A few days will not make any difference in the overall scheme of things if you are really behind in your bills or if creditors are hounding you. You can tell any callers that you are going to join a consumer credit counseling service and this should quiet them.\nYou need to consider how you got into this mess in the first place — not being able to exercise control over your finances, right? If you only come out of these programs with your debt gone, you are only treating the symptom without addressing the root problem. You should look for programs which include \"financial fitness\" programs and budgeting plans as one of the primary focuses. END
 TITLE: Help Finding a Good Debt Consolidation Company CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
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 TITLE: Debt Relief and How it Can Affect Your Credit Score CONTENT: Can Debt Relief Hurt or Help Your Credit Score?\n-----------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 11, 2017_\nWhen you imagine yourself relieved of debt, it's a purely positive feeling. Unfortunately, debt relief in some of its forms can carry with it some pretty negative consequences. That said, any one of these options could be the best option, depending on the circumstances.\nThere are five ways you can relieve yourself of debt:\n1.  **Pay Off Your Balances.** Granted, this is easier said than done, but it will certainly relieve you of the debt that is costing you money in the form of interest payments and, likely, a big headache in terms of the stress associated with outstanding debt that never seems to go away. If you keep all of your paid-off credit card accounts open after paying them in full, this should have only a positive impact on your credit. Not only will your accounts be reflected as current, but you will improve your credit utilization rate. On the flip side, closing your credit cards will have the opposite affect, hurting your credit utilization rate. The key is keeping as many of your accounts as possible, but at zero balances.\n2.  **Consolidate Your Debt.** By using this option, you pay off your balances, but with the help of a loan, through which you consolidate your debt into one account (i.e., use the new loan to pay off all your others). This should lower your interest rates and monthly payment and, in turn, help you get out of debt faster. Of course, taking out a new loan increases your risk in the eye of lenders, which theoretically should lower your credit score. However, this should be balanced out by the positive impact of paying off the outstanding loans reflected in your credit report.\n3.  **Get Credit Counseling.** Like options one and two, credit counseling also involves paying off the full balance of what you owe. However, credit counselors work with creditors on your behalf to lower payments, fees and interest rates. The credit counselor also collects your payments each month and pays creditors on your behalf. Though FICO typically does not count against you reports of \"making payments via a credit counselor,\" this option can hurt your score via the required closing of all your credit cards. Theoretically, this should lower your credit utilization rate, but if all the cards are maxed out, it's not as if they were helping much in that regard in the first place.\n4.  **Negotiate\/Settle Your Debts.** Instead of paying your balances in full, this option enables you to negotiate with creditors and settle on less than the amount owed. Unfortunately, \"paid less than full\" counts as a pretty strong strike against your credit. Your credit score represents your risk as a borrower and, naturally, if you fail to live up to your obligation of paying your debt in full, your score will be lowered accordingly.\n5.  **File For Bankruptcy.** Depending on whether you file Chapter 7 or 13 bankruptcy, all or much of your debt will be forgiven. A Chapter 7 bankruptcy will stay on your report for up to 10 years, Chapter 13 only up to 7 years, as it requires you to pay at least some of the debt you owe. Probably needless to say, both count as big strikes against your credit.\nWhich Debt Relief Option Will Help Your Credit The Most?\n--------------------------------------------------------\nThe best way to help your credit, guaranteed, is to find a way to pay off your balances on your own. This will have only positive impact on your credit. Since bankruptcies remain on your credit report for 7 to 10 years, they have the most negative impact on your credit. That said, debt negotiation and settlement run a close second, as your credit risk is considered considerably higher when you fail to pay, as agreed, what you owe in full.\nWhich Debt Relief Option is Right For You?\n------------------------------------------\nTo answer that question you will need to do your homework. The information shared here is a good place start, but should only be the beginning of your research. Other debt articles here at CreditInfocenter.com can help, including our comprehensive coverage of credit counseling, debt negotiation and settlement, and bankruptcy.\nCan You Improve the Negative Impact of Debt Relief on My Credit\n---------------------------------------------------------------\nAbsolutely! Once you have completed whichever debt relief option is best for you, keep any and all loans current and paid to a zero balance every month. If after your debt relief you are left with no open accounts, get yourself a secured credit card that reports to the credit reporting agencies. Use your credit on a regular basis, but only as much as you can afford to pay off at the end of every month, which is the ideal way of proving you understand how credit works and are disciplined enough to use it responsibly. END
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 TITLE: Exempt vs Non-Exempt Property When Filing Bankruptcy CONTENT: What Property Can You Keep When Filing For Chapter 7 Bankruptcy?\n----------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 3, 2017_\nIf you are thinking about filing for Chapter 7 bankruptcy, you are probably wondering how much of your personal property you will be allowed to keep once you file. Can you keep that signed painting, your coin collection, even your furniture — the thought of losing all of your prized possessions can be a very scary thought indeed. The answer to your question largely depends on the types of property you have, how much it is worth, and the bankruptcy exemptions you use.\nWhat is the Purpose of Exemptions in Chapter 7 Bankruptcy?\n----------------------------------------------------------\nAfter you file Chapter 7, the court appoints a bankruptcy trustee who is given the authority to sell your assets to pay your creditors. Luckily, filing BK does not mean you have to turn over every item you own, exemptions allow you to keep a certain amount of your personal property and the trustee can not sell these items to pay off your creditors. How much you can keep and what you can keep depends on the value of the asset and the specific exemptions in your state or the federal bankruptcy code. Thanks to these exemptions, you will probably be able to keep the majority of your personal property.\nHow Do Exemptions Work in Chapter 7 Bankruptcy?\n-----------------------------------------------\nEach state and the federal system have a set of exemptions — some states require you to use their exemptions while others let you choose between your state system or use the federal exemptions. Therefore, the amount of property you can protect depends entirely on the state you live in. The following states let you chose between using the state list of exemptions or using the federal bankruptcy exemptions. Obviously, you want to choose which system benefits you the most. If you live in a state that is not listed below, you have no choice but to use the state list of exemptions.\nAlaska\nNew Jersey\nArkansas\nNew Mexico\nConnecticut\nNew York\nDistrict of Columbia\nOregon\nHawaii\nPennsylvania\nKentucky\nRhode Island\nMassachusetts\nTexas\nMichigan\nVermont\nMinnesota\nWashington\nNew Hampshire\nWisconsin\nNow that you have decided which exemption system you are going to use (either the state or the federal), you will then need to fill out a Schedule C — Property Claimed as Exempt — along with your other bankruptcy paperwork. On this form, you list all of the property and assets that are legally exempt.\nSince each state has their own exemption list, we will just go over the **federal exemption list**. If you have to use your state's list, we suggest you look up the bankruptcy code for your state on the Internet to see what property you can list on your Schedule C. The following are the most important federal exemptions and the amount you can take. These amounts are adjusted for inflation every three years and the recent adjustment was made April 1, 2016.\n*   Homestead — Real property, including mobile homes and co-ops, or burial plots up to $23,675. Unused portion of homestead, up to $11,850 may be used for other property.\n*   Automobile — up to $3,775. The equity in your car is based on the car's market value, less any loans against it.\n*   Household items (appliances, furniture, clothes, books, crops, or musical instruments) — up to $12,625 aggregate value and $600 per individual item.\n*   Jewelry — up to $1,600 in value.\n*   Tools of the trade — up to $2,375 in value.\n*   Health aids\n*   Life insurance policies that have not matured except credit life insurance.\n*   Up to $12,625 in loan value of life insurance policy.\n*   Alimony and child support — amount reasonably necessary for support of debtor and dependents.\n*   Public benefits — such as unemployment, workers compensation, public assistance, Social Security or Veteran's benefits.\n*   Retirement accounts are exempt, however, there is a cap of $1,283,025 on IRSs and Roth IRAs.\nFederal Non-Exempt Personal Property\n------------------------------------\nAs we stated before, when you file for bankruptcy, there is certain property that must be turned over to the bankruptcy trustee to be sold to pay off creditors. Below are examples of property a debtor will usually have to give up in order to be liquidated with the proceeds being dispersed to your creditors:\n*   Expensive musical instruments, unless you are a professional musician.\n*   Collections of coins, stamps, family heirlooms, and other collectable valuable items.\n*   Cash, bank accounts, stocks, bonds, and other investments.\n*   A second car or truck.\n*   A second or vacation home.\nIf you have any questions about what property you can keep and what you cannot keep, the best advice we can give you is to seek the help of an experienced bankruptcy attorney. END
 TITLE: Exempt vs Non-Exempt Property When Filing Bankruptcy CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Exempt vs Non-Exempt Property When Filing Bankruptcy CONTENT:    |  |  |  | \n: . END
 TITLE: Read a Rebuttal Letter Sent to Ameridebt CONTENT: ###### Written by: Kristy Welsh\nAmeridebt is no longer in business. You can refer to our debt section of our website for more information.\nAmeridebt Rebuttal Letter\n-------------------------\n_June 25, 1999_\nHere's the letter Ameridebt's lawyer sent me. Despite what they said, I published it literally 20 minutes after I got it. The entire letter is unedited. Enjoy!\nDear Ms. Welsh:\nOur client Ameridebt informs me that you have not posted its reply to the charges made on your website regarding its operations and that you have in fact posted additional letters of complaint.\nIn the conversation that I had with you, you offered to post a reply from the company, and I am surprised that you have not abided by that pledge. In the event you did not actually receive the reply, I am pleased to forward a copy. If you have any questions about the following, you should feel free to be in touch with Ms. Wilson, Ms. Shuster, or with me.\nVery truly yours,\nJulian H. Spirer\nJHS:sj\nM E M O R A N D U M\nTo: www.creditinfocenter.com (Kristy Welsh)\nFrom: Ms. Pamela Shuster, President, Ameridebt, Inc.\nDate: May 13, 1999\nRe: Unfairly Critical Report\nWe have learned that www.creditinfocenter.com and its reporter, Ms. Kristy Welsh, have posted a critical report regarding our company. We find it shocking that a website, apparently created to assist consumers with credit related issues, would write a negative report about AmeriDebt, a non-profit organization, created solely to assist consumers in need of help with their personal finances.\nWe disagree strongly with all of the harsh comments and innuendos in the report for the reasons set forth below:\nThe first concern pertains to the so-called complaint that Ms. Welsh received from a consumer who had enrolled in our debt management program. The client contacted creditinfocenter.com inquiring as to whether or not they had heard of Ameridebt. He had recently enrolled in our debt management program and had not yet detected any improvement in his credit situation. This complaint could only be characterized as the routine apprehension that clients will have during the first 60-90 days before a payment arrangement can be finalized with creditors. We address this apprehension with all our clients and alert them not to expect favorable results for the first two to three months.\nOur second concern relates to the manner in which Ms. Welsh addressed this complaint to us. Ms. Welsh called us at approximately 8:00pm EST insisting on speaking with a manager. Our offices were closed. Luckily she was able to reach one of our representatives who was staying late. Ms. Welsh told the representative, \" I received a complaint from one of your clients and I am going to post a \"scam notice\" about your company on our website. Do you have any comments?\" The representative responded that she was not in a position to handle such an issue and that all the mangers had gone for the day. Ms. Welsh threatened, \"This is your only chance to respond, and if I don't hear from somebody, I am going to post a scam notice tonight.\"\nWhere was the emergency? If Ms. Welsh had bothered first to inquire generally about Ameridebt, she would have learned that we have assisted well over 30,000 individuals or families to resolve troublesome credit problems. There was little risk of imminent catastrophe if the response from Ameridebt had to wait until we opened for business the next day. Ms. Welsh faced no deadline in posting the \"complaint\" on her website.\nGiven Ms. Welsh's threat, the representative decided to call one of our managers at home. The manager called Ms. Welsh from her home in an attempt to defend our company. She explained exactly how our programs work. Ms. Welsh appeared to be satisfied with all of her responses. Ms. Welsh stated that the manager was, \"very nice and cordial.\" Ms. Welsh gave the impression to the manager that she was not going to post anything negative. She then thanked the manager for returning the call.\nThe next day, the manager spoke to the credit counselor who had originally enrolled the allegedly dissatisfied client. The credit counselor was surprised that the client was unhappy, and he decided to call the client himself to find out what the problem was. According to Ms. Welsh's report, our counselor was not very friendly to the client during this call and gave the client a hard time about filing a complaint with creditinfocenter.com.\nWhen the report was posted, we asked our counselor what had happened. The counselor denied that he have been intentionally unfriendly to the client, although he acknowledges that he was upset that the client questioned our legitimacy and that his tone of voice might have given the client a reason to feel that he was being unfriendly.\nWe decided to call the client again to get a more complete story. We explained what had happened. The client replied that he had never intended to file a complaint against us. He said that he stumbled upon Ms. Welsh's website, was apprehensive about how things were going with his creditors, and decided to inquire as to whether they knew anything about us. He said that he was not dissatisfied, nor did he mean to create any problems. He stated that he was upset when the counselor called him back and he did write back to Ms. Welsh regarding the incident. However, he stated that, even at that point, he did not mean to create any problems and said that he was sorry if his comments crated difficulties for us.\nHe further stated that, if we needed him to, he would be more than happy to provide us with a letter stating his satisfaction and clarifying any confusion.\nIn summary, Ms. Welsh simply received a rather routine inquiry from one of our clients. She then took it upon herself to assume that we were doing the public an injustice, threatened at 8:00pm to post a \"scam notice\" immediately, and, then, even after we called her and explained our procedures, decided to write a critical report. While we understand that she has the right to post her opinions on her website, we are pained that she would target Ameridebt, a non-profit organization that assists thousands of people every day.\nI would like to address further some of the particular accusations that Ms. Welsh made in her report.\nMs. Welsh mentioned that she received a call from our PR person stating that we wanted to advertise on her site. Ms. Welsh expressed a concern that our inquiry may have been intended as a bribe.\nThe first time that we ever heard of the website creditinfocenter.com was when we first received the phone call from Ms. Welsh. After our manager spoke with her, we thought that the confusion was clarified and that she was satisfied with our company. After looking at their website and realizing that there were other credit counseling organizations advertising there, we felt that it might be a good place to advertise. We simply contacted the site and inquired about the advertising rates that they charge. At no point did we do anything other than inquire about rates and availability. We have absolutely no idea whatsoever how Ms. Welsh could possibly view our inquiry as a bribe.\nMs. Welsh stated that it \"bothers her that we are collecting extra cash from the desperate debt strapped masses to cover operating costs\".\nOnce again, Ms. Welsh did not get all of the facts. We do not \"collect extra cash\" from our clients. We do request that they make a voluntary monthly contribution to help cover our operating costs. Although we are a non-profit organization, we obviously have expenses and do need to generate revenue to pay those expenses. Most of our revenue comes from contributions that the creditors make. We do, however, rely on the voluntary contributions from our clients as well. Please keep in mind that the funds collected from our clients are voluntary contributions and that many of our clients do not pay us anything for our assistance. In fact, the client who filed the inquiry with creditinfocenter.com was only giving us a contribution of $10.00 per month, and we had to cover the expenses involved with managing five of his accounts. Also keep in mind that the contributions that the clients make are extremely small in comparison to the money that they save by having their interest rates reduced on our program.\nMs. Welsh expressed a concern that Ameridebt's counselors are former collection agents since, in her experience, collection agents are trained to be as nasty and threatening as possible.\nWe have over seventy-five counselors on our staff. To my knowledge, only three have previously worked for collection agencies. The three counselors who had previous collection experience are just as friendly and courteous as any of our other counselors. In our opinion, it is actually a benefit for counselors to have previous collection experience because they are better able to advise the clients as to how to handle any collection agents who may be calling.\nMs. Welsh asked rhetorically, \"Does getting a 12 percent loan to pay off an 18 percent loan make sense?\"\nIn our opinion, it makes obvious sense if clients with $10,000 in debt can lower their interest rates by 6 percent by taking a loan. They end up saving $50.00 per month, $600.00 per year, or $2,400 over a four year period. Any financial analyst would say this makes a tremendous amount of sense.\nFor some reason, Ms. Welsh expresses the opinion that going through our program or any other credit counseling program will ruin your credit.\nApparently, creditinfocenter.com posted a previous report on this topic at some time in the past. At that time, another credit counseling organization objected and creditinfocenter.com posted the objections. We agree that credit counseling in no way destroys a client's credit. Please read the report of CCCS, a fellow agency, posted at this website.\nIn closing, we appreciate the opportunity to defend ourselves. Ms. Welsh may be trying to protect the public, but she does the public a disservice, by discrediting companies like Ameridebt whose reason for being in business is to help people. END
 TITLE: Dischargeable and Non-Dischargeable Debts Filing Bankruptcy CONTENT: What Debts Can Be Discharged When Filing Bankruptcy?\n----------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 3, 2017_\nFiling for bankruptcy offers a fresh start when you find yourself overwhelmed by your debts. People may turn to bankruptcy for no fault of their own and for many different reasons. Maybe you lost your job or a family member suffered a sudden catastrophic illness, which used up your life savings and then some. Sometimes bad decisions and not being responsible with spending caused you to become burdened with too much debt. Bankruptcy offers people a way to begin their life over again.\nWhat Does it Mean to Discharge Your Debts?\n------------------------------------------\nThe main focus of bankruptcy is to discharge you from your debts. Discharge means that your personal liability for a debt ends, and creditors can't make any further collection efforts. However, not all debts are eligible for discharge as we shall see in the following paragraphs were we will show you what you can and can not discharge in a bankruptcy.\nDebts That Can Be Discharged in a Bankruptcy\n--------------------------------------------\nThe following is a list of debts that can generally be discharged in a bankruptcy:\n*   Credit card or unsecured loans\n*   Medical bills\n*   Payday loans\n*   Collections\n*   Judgments\n*   Unpaid rent\n*   Utility bills\n*   Mortgages (but you will lose your home)\n*   Auto loans or leases (but you will lose your car)\n*   Individual tax debt including penalties, owed for more that three years after a tax return is filed\nChapter 7 Non-dischargeable Debts\n---------------------------------\nIn a Chapter 7 bankruptcy filing, the following debts cannot be discharged:\n*   Taxes that have become due in the last three years \n*   Student loans\n*   Alimony and child support\n*   Debts obtained through fraud, false pretenses or false representation \n*   Debts you failed to schedule in time to allow creditors to file proofs of claim (unscheduled debts) \n*   Debts for fraud while you were acting in a fiduciary capacity, or for embezzlement or larceny \n*   Debts for willful and malicious injury \n*   Debts for fines or penalties to governmental units \n*   Debts for judgments in wrongful death or personal injury lawsuits resulting from motor vehicle, vessel or aircraft accidents while you were intoxicated \n*   Condominium or cooperative association fees or assessments \nChapter 13 Non-dischargeable Debts\n----------------------------------\nIn a Chapter 13 bankruptcy filing, the following debts cannot be discharged:\n*   Student loans\n*   Alimony and child support\n*   Fines and restitution\n*   Unscheduled debts\n*   Certain taxes, such as withholding taxes if you had employees, or taxes connected to fraudulent tax returns or tax evasion \n*   Debts incurred through fraud \n*   Debts for fraud while you were acting in a fiduciary capacity, or for embezzlement or larceny \n*   Debts for willful and malicious injury \n*   Judgments in wrongful death or personal injury cases arising from your intoxication \n*   Debts incurred after filing your case, which weren't included in your Chapter 13 plan \n*   Debts that are non-dischargeable under other laws, for example amounts owed for certain health education programs \n*   Interest owed on non-dischargeable debts \nFiling bankruptcy should not be taken lightly and before you even start the process, it is a good idea to talk to an experienced bankruptcy attorney. Sometimes, there are other options available to you other than filing for bankruptcy. Don't forget, a bankruptcy will stay on your credit for 7 to 10 years so make sure to exhaust any and all other options before going down the BK road. END
 TITLE: Dischargeable and Non-Dischargeable Debts Filing Bankruptcy CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Dischargeable and Non-Dischargeable Debts Filing Bankruptcy CONTENT:    |  |  |  | \n: . END
 TITLE: How to Get Out of a Debt Consolidation Program CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 10, 2017_\nIn our debt forum, we read horror stories from people who have signed up with a debt consolidation company to help them get out of debt only to have their credit ruined. Even with a lot of the really bad companies going out of business due to litigation, there are still that many more waiting to take advantage of you and your bad situation.\nStatistics show only **one in ten consumers** lured into a debt settlement plan ever actually becomes debt free. This makes the risky scheme the No. 1 threat facing the most deeply indebted Americans, says a consumer alert issued last year by the nonprofit National Association of Consumer Bankruptcy Attorneys.\nTips When Looking For a Debt Consolidation Company\n--------------------------------------------------\nIf you are looking to sign up for a debt settlement program through a debt consolidation company, you need to be wary of organizations that:\n*   Charge high up-front or monthly fees for enrolling in credit counseling or a Debt Management Program (DMP).\n*   Pressure you to make voluntary contributions or another upfront fees.\n*   Refuse to send you free information about the services they provide without requiring you to provide personal financial information, such as credit card account numbers, and balances.\n*   Try to enroll you in a DMP without spending time reviewing your financial situation.\n*   Offer to enroll you in a DMP without teaching you budgeting and money management skills.\n*   Demand that you make payments into a DMP before your creditors have accepted you into the program.\nFor more information on what is illegal per FTC guidelines, read our article entitled Debt Consolidation Rules and Regulations.\nBefore Engaging in a Debt Management Program\n--------------------------------------------\nIf you suspect that your debt management\/debt settlement company may not be delivering on their promises, check your bills to make sure the organization fulfills its promises as far as the monthly fees and any money being taken out of your checking accounts. If you are paying through a Debt Management\/Debt Settlement Program, contact your creditors and confirm that they have accepted the proposed plan before you send any payments to the organization handling your DMP.\nWhat if the Debt Management Company Has Gone Out of Business?\n-------------------------------------------------------------\nWhat happens to your debt settlement program if the company that managed your debts shuts down? A counseling agency that is going out of business may send you a notice telling you that your DMP is being transferred to another company. Or it may tell you that you need to take some action to keep your financial recovery on track. If a government agency has filed an action against your debt management company, you may get a notice from a third party. If you discover that the organization handling your debt management is going out of business you need to:\n1.  Contact your bank to stop payment if you are making your payments through automatic withdraw.\n2.  Start paying your bills directly to your creditors.\n3.  Notify your creditors that the organization handling your debt is going out of business. Consider working out a payment plan with your creditors yourself. Ask if they will give you a reduction on your interest rate.\n4.  Order a copy of your credit report. Check for late payments or missed DMP payments  that may result from the company going out of business. If you see \"late\" notations you don't expect, call the creditor immediately and ask that the notation be removed. Understand that they have no obligation to do it.\nIf payments are late because the organization handling your debt management has failed to make scheduled payments, the consequences can be just as devastating as if you failed to make payments to the DMP. If you do not act quickly to make arrangements with your creditors, you could incur late charges that increase your debt, lose the lower interest rates associated with the settlement, and have late marks on your credit report.\nAnother thing to do is to immediately pull out of the program and contact your existing creditors and see if you can work out a plan with them to make payments on your own in one of their hardship programs. If you do not act quickly to make arrangements with your creditors, you could incur late charges that increase your debt, lose the lower interest rates associated with the settlement, and have late payment notations on your credit report.\nGetting Your Money Back\n-----------------------\nUnfortunately, most people don't read the fine print on the contracts with the DMP companies. According to this blog post, Confessions of a Debt Settlement Company Worker:\n_\"The contract actually states that the company is not responsible for any negative repercussions due to their enrollment in our program. It also stated we could cancel a client without refund at any time (which happened a few times in a year), and that if a client cancelled we were still due our year's worth of fees no matter what. Money that we were practically guaranteed because we drafted directly from the client's checking accounts. No person in their right mind would sign this contract if they understood what it meant.\"_\nEven if your credit report doesn't have such scurrilous language, you may still have to threaten the DMP with legal action, reporting them to your local attorney general's office, the FTC, or the Better Business Bureau.\nFix the Damage to Your Credit Report\n------------------------------------\nOnce you have negotiated with your creditors, you can begin the process of credit repair. For details on how to do this read our free credit repair articles.\nYou can also try to see if a lawyer might take on your case and see if they know of any class action lawsuits that are currently in progress against your DMP Company. NACA is a great website to visit to find a good attorney.\nLastly, to help you negotiate with your creditors, you can also order our Settle Your Debts for Pennies on the Dollar eBook for some more tips on talking to your creditors.\nGood luck to you, and don't file bankruptcy. You can get through this. END
 TITLE: Dispell the Myths About Filing Bankruptcy CONTENT: Bankruptcy Myths — What is Fact and What is Fiction\n---------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 2, 2017_\nFiling bankruptcy can be a scary proposition and one that should not be taken lightly. Even though bankruptcy cases filed in federal courts for fiscal year 2016 are the lowest since 2010, you probably know someone who has recently filed for bankruptcy. Even though you might know someone going through a bankruptcy, that is not to say you know what is truth and was is fiction regarding bankruptcy. Like those scary noises in the middle of night, bankruptcy is not that scary once you are able to cut through the myths and get down to the real truths about bankruptcy.\nBankruptcy Myth #1 — Filing Bankruptcy is Something to be Ashamed of Doing\n--------------------------------------------------------------------------\nThis could not be further from the truth. Many people get into serious financial trouble after a divorce, a major medical problem, or maybe they lost their business or their job, and they are unable to pay their bills. Bankruptcy was designed to help people like these, who for no fault of their own, are now in serious financial trouble and just need help getting out from under all their debt. Bankruptcy is there to help and to afford a person a fresh start. Sure, there are people who abuse the system and carelessly run up a bunch of debt only to file bankruptcy to get out of paying. You are going to find that with anything in life, but for the most part, filing bankruptcy seems to be done by those who are truly in financial dire-straights and need a helping hand.\nBankruptcy is a public legal proceeding and your name could be published in a local newspaper or other public publications, but the chances of someone really reading these listings is slim to none. The only ones that will really know about your bankruptcy will be your creditors.\nBankruptcy Myth #2 — All Debts Will Be Wiped Out in a Chapter 7 Bankruptcy\n--------------------------------------------------------------------------\nThis is a myth. Filing Chapter 7 bankruptcy does not discharge all debt and there are certain types of debts that cannot be discharged. These debts include child support, alimony, student loans, restitution for a criminal act, and debts incurred as the result of fraud.\nBankruptcy Myth #3 — If You Are Married, You and Your Spouse Have to File Bankruptcy\n------------------------------------------------------------------------------------\nNot necessarily. It is not uncommon for one spouse to have a significant amount of debt in their name only. However, if both spouses have debts they want to discharge that they are both liable for, they should file together.\nBankruptcy Myth #4 — All Bankruptcy is the Same\n-----------------------------------------------\nThis is not true. There are two types of bankruptcies that are used for personal bankruptcy. In a Chapter 7 bankruptcy, your non-exempt property will be liquidated and used to pay your creditors. This option allows you to discharge some of your debt. A Chapter 7 bankruptcy will stay on your credit report for 10 years and it the most damaging one to your credit score.\nA Chapter 13 bankruptcy allows you to restructure your debts and follow a repayment plan. This type of bankruptcy is for those individuals who have a lot of assets and do not want to liquidate those assets to pay their debts. They are looking to restructure their debts and work out a payment plan with their creditors. This bankruptcy can last for years and will also stay on your credit report for 10 years after it is finalized.\nBankruptcy Myth #5 — It is Very Difficult to File Bankruptcy\n------------------------------------------------------------\nIt really is not that difficult and you really don't even need a bankruptcy attorney — however, it's not recommended to go through the procedure without one. Anyone can file for bankruptcy but there are limits on how often you can file for bankruptcy. You can only file for Chapter 7 once every eight years and you need to qualify to file bankruptcy by taking a means test and satisfying the requirements outlined therein.\nBankruptcy Myth #6 — Your Credit Will Be Ruined Forever After Filing for Bankruptcy\n-----------------------------------------------------------------------------------\nBankruptcy will seriously affect your credit, but the negative ramifications will not last forever. It won't be long before you can obtain a secured credit card, which will help you rebuild your credit history. Using this card for the next few years, paying your bills on time, and being careful not to run up your credit limit, will help establish some positive credit on your credit report and will help increase your credit score over the long run.\nBankruptcy Myth #7 — You Can Go On a Shopping Spree, Max Out Your Credit Cards, Then File for Bankruptcy\n--------------------------------------------------------------------------------------------------------\nDefinitely NOT a good idea! This spending spree will be considered fraud in the eyes of the bankruptcy judge. Since this could be seen as fraudulent debt and will not be discharged. END
 TITLE: Changes to Bankruptcy Laws - Means Test, Bankruptcy Counseling CONTENT: Recent Changes to the Bankruptcy Laws\n-------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 2, 2017_\nFiling for bankruptcy in 2017 is virtually no different than any other year. The bankruptcy laws haven't changed much since 2005, when President Bush signed into law \"The Bankruptcy Abuse Prevention and Consumer Protection Act.\" This article will summarize the changes made back in 2005 and what those changes mean to you.\nCredit Counseling Required\n--------------------------\nBefore you can file for bankruptcy, either Chapter 7 or Chapter 13, you must complete credit counseling with an agency which is approved by the United States Trustee's office. The purpose of this counseling is to give you an idea of whether or not you really need to file for bankruptcy. All consumers must attend a credit counseling education session at least 6 months before filing for bankruptcy. Here is a website which gives you a list of qualified credit counseling centers. Only education from one of these centers qualifies. In addition, consumers must complete additional financial education\/certification before having their debts finally discharged in the process. Here is a list of the approved centers for financial education.\nPrior to the new bankruptcy laws of 2005, filers could choose the type of bankruptcy that was best for them, either Chapter 7 (liquidation) or Chapter 13 (repayment). Most filers chose to file Chapter 7 Bankruptcy. Now, applicants must pass a Means Test to see if their income and\/or ability to pay excludes them from filing one or the other type of bankruptcy. That is, if you have enough disposable income to make payments on a Chapter 13 plan, you will not be able to file Chapter 7.\nLonger Repayment Time For Chapter 13 Bankruptcy\n-----------------------------------------------\nFor those filing Chapter 13 bankruptcy, the repayment period has been extended to five years instead of three.\nState Exemptions\n----------------\nYou cannot use the exemptions in your state of residence unless you have lived there at least two years.\nHomestead Exemptions\n--------------------\nThe exemption is limited to $125,000 of your state's homestead exemption, if the property was acquired within the previous 1,215 days (3.3 years). The cap is not applicable to any interest transferred from a debtor's previous principal residence, which was acquired prior to the beginning of such 1,215 day period. How does this work?\nExample 1: In Arizona, the homestead exemption is $100K. No matter when you have acquired your home, the amount of equity you are allowed to keep in your home is $100K. If you have more equity than this, you will probably be forced to sell.\nExample 2: Kansas, Texas, Florida, Iowa, and South Dakota have unlimited homestead exemptions. So if you have $1 million in equity in your $2 million dollar Texas mansion, and you've owned it more than 3.3 years before filing a bankruptcy, the equity is completely exempt. If you bought it within the last 3.3 years, you are only allowed to have $125K in equity.\nVehicles\n--------\nIf there is security put in place within 3 years on your vehicle, you must pay the full amount owed or lose the vehicle. Current bankruptcy laws allow you to get the loan stripped down to the value of the vehicle and you make payments at that rate.\nWhat does this mean to the consumer? Let's say you had poor credit and could only afford to buy a car from that shady used car dealership that sells cars to people with bad credit. Typically, the interest rates are over 20 percent, which can make a $2,000 car loan equate to well over $16,000 if you added up all the payments made for the life of the loan. Under the new laws, the consumer would be required to pay the entire $16,000 back, or lose the car. The old laws reduced the amount of the loan to what the car was worth, and payments would continue from that point.\nChild Support and Alimony\n-------------------------\nThese debts went from a priority of 7th to 1st.\nBankruptcy Lawyers are Accountable for Supplying Accurate Information\n---------------------------------------------------------------------\nUnder the new law, if information about a client's case is found to be inaccurate, the bankruptcy attorney may be subject to various fees and fines. What this means is that a lawyer can be fined if his client has supplied false information to the lawyer, who, having no reason to think the information is incorrect, forwards this information to the court. This doesn't cover information supplied by a lawyer which he knows is false, obviously wrong and fines should be levied in such cases. But this isn't what the law says. The law can be interpreted to say **_a lawyer can be found liable if his client lies to him._**\n### Tithing\nUp to 15 percent of your income can be given to charity. This is seen by some as a loophole allowing people who may be just over the thresh hold of having to file Chapter 13, able to drop their income down low enough to file Chapter 7.\n### Asset Protection Trust\nThe new law leaves intact an increasingly popular loophole called asset protection trusts. These trusts allow people to protect substantial assets from creditors even after filing for bankruptcy.\nSetting up these trusts can cost many thousands of dollars. Maintaining them and paying an in-state trustee can cost thousands more. That rules these trusts out for people of modest means, making them an option mainly for the wealthy.\nUntil 1977, these trusts could only be opened offshore. But since then, eight U.S. states — Alaska, Delaware, Utah, Nevada, Rhode Island, Oklahoma, South Dakota and Missouri — have passed laws exempting assets held in the United States from federal bankruptcy laws. People opening one of these trusts don't have to be a resident of the state, but merely establish the trust through a financial institution located there. END
 TITLE: Avoid Filing Bankruptcy If You Are Under 30 CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: October 3, 2017_\nWhen you're deep in debt and under the age of 30, it feels like you're going one step forward and two steps back. You might be just getting started in your career, but all the money you make goes toward bills instead of building the kind of savings and investments you may equate with success. For this reason, it's tempting to flirt with the idea of filing for bankruptcy, for the second chance it gives you at a clean slate. But here's the thing: it's probably not as clean as you think.\nBankruptcy Will Not Discharge Student Loans or Recent Income Taxes\n------------------------------------------------------------------\nIf the debt you're having trouble paying includes student loans or recent income taxes, keep in mind that bankruptcy will not discharge either one. Student loans are exempt and the only income taxes that could possibly qualify are those more than three years old. So before starting bankruptcy proceedings, make a list of other debts that could qualify.\nDischargeable debts may include:\n*   Credit card debt\n*   Auto loans and leases\n*   Mortgages\n*   Apartment and home leases\n*   Medical debt\n*   Business debt\n*   Judgments\nTake the time to explore your negotiation and payment plan options for each one of these categories. Bankruptcy stays on your credit report for 7 to 10 years, at which time you're then faced with the challenge of rebuilding your credit score. If you can make arrangements to pay off your debts in even half that time, it's an alternative well worth your consideration.\nBankruptcy Damages Your Credit For Years to Come\n------------------------------------------------\nAs you know, lenders don't like to see a bankruptcy on your credit report. So you can expect it to negatively affect your credit worthiness. A Chapter 7 bankruptcy will stay on your credit for 10 years and a Chapter 13 bankruptcy will be on your credit for the next 7 years. This does not even take into consideration the time it will take to rebuild your credit score once the bankruptcies fall off your credit report.\nIn the meantime, if you have decent credit now — say 700 — you can expect it to fall 100 to 150 points, to 600 or lower. If you already have a credit score below 600, you may not see it fall quite so far — maybe 30 to 50 points — but the state of your credit will be the same: _guaranteed_ be poor, for a very long time.\nIf you file bankruptcy, you can expect to find it difficult, if not impossible, to qualify for:\n*   Credit cards\n*   Auto loans\n*   Home loans\nNot planning on buying a home anyway? Well, you may find it equally challenging to rent a house or apartment with a bankruptcy on your credit report, as it speaks volumes to landlords looking for responsible tenants who pay their bills. Plus, there's the added expense you will no doubt face when trying to open accounts for utilities, for which those with low credit scores are required to pay deposits.\nTime is on Your Side\n--------------------\nWe all have financial goals for ourselves, be it in our 20's, 30's, 40's, or beyond. So it's certainly natural to feel frustrated with this un-manageable debt looming over you. Fortunately though, with responsible, focused attention, you can pay down your debt in plenty of time to realize your financial goals. The \"clean slate\" of bankruptcy not only stains your credit for 7 to 10 years, but it robs you of the character-building opportunity to learn now, while you're still so young, how to manage your money in a way that will reap you huge benefits in your long, lucrative future.\nAll of this is not say bankruptcy is definitely not the best option for you, as everyone's situation is unique. Please take the time to review our other articles on bankruptcy to determine your wisest course of action. END
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 TITLE: Is Debt Free Always Good CONTENT: How to Live Debt Free - Our List of Do's and Don'ts\n---------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 11, 2017_\nWhile there's no doubt the most practical part of ourselves prefers debt-free living, there's a fair amount of conflicting messages on the subject, specifically as it relates to your credit score. On the one hand, you need activity on your credit reports to prove your are a responsible user of credit. On the other hand, carrying too much debt can actually hurt your credit score. The truth is, the do's and don'ts of debt-free living lie somewhere in the middle.\nDebt-Free Do's\n--------------\n**Do Use Your Credit Cards.** Simply having a credit card in no ways exhibits to lenders that you are a responsible user of credit. The key is to actually use the credit account, then demonstrate behavior that signals to lenders you know how to handle it.\n**Do Aim For a Zero Balance on Your Credit Cards.** The only way of ensuring a zero balance — on a card that you actually use — is to only charge as much as you have cash to back it up (i.e., pay it off by the end of the month). Otherwise, you could be stuck carrying a balance, only able to make your minimum payment. While the credit card companies certainly won't mind making money off your finance charges every month, your pocketbook will.\n**Do Carry Debt That Makes Good Sense.** Credit card debt does not fall into this category as 1) credit card debt is not an asset that grows in value over time and 2) credit card debt does not have the potential to generate future income. Debt that does meet one of these criteria includes mortgages, home equity loans, student loans, and even auto loans, provided a vehicle is necessary to get you to and from work.\n**Do Keep Your Credit Utilization Ratio as Low as Possible.** Try not to use more than 30 percent of your credit at any one time, as the more of your available credit you use, the more you are seen as a credit risk which will be reflected in your credit score. If you have mortgages, home equity loans, auto loans and\/or student loans, this makes a zero balance on your credit cards all the more important.\nDebt-Free Don'ts\n----------------\n**Don't Avoid Using Credit Cards.** While a good credit score is not dependent on credit cards, they can be a great way of exhibiting the kind of credit activity lenders equate with responsible credit use. Provided you only use them occasionally and pay off the balance before your statement date, you can avoid finance charges and maintain a history of zero balance, while still exhibiting a good amount of activity on the account.\n**Don't Confuse Credit Card Statement Dates With Due Dates.** If you pay your bill in full before the lender generates your statement, you will avoid finance charges, plus your account will show a zero balance. If you wait and pay on the due date, or any time after the statement is generated, you'll not only be carrying a balance forward (increasing your credit utilization ratio), but you'll also be paying finance charges to boot.\n**Don't Believe That Paying Finance Charges Helps Your Credit Score.** In fact, whether or not you pay finance charges is in no way reflected on your credit reports or in your credit score. The only thing that's noted is activity itself. In other words, your credit score will benefit just as much from you immediately paying off a credit card charge (even the very same day) as it would from waiting until your due date.\n**Don't Confuse Debit and Prepaid Credit Cards With Other Types of Secured Credit Cards That Report to Credit Bureaus.** We often advise those who are rebuilding their credit to consider secured cards if and when they cannot qualify for an unsecured account. However, this is only a helpful decision if the creditor offering the secured card will report your activity to the credit bureaus. This is not the case for debit cards, or for many prepaid cards. This means you should compare cards carefully before applying, so that you're sure to get one that's actually going to help improve your credit score.\n**Don't Take Out Payday Loans or Title Loans.** When you're in a pinch, the dreaded payday and title loans can start to look good. Keep your head, though, at all cost. While, ideally, you would be in and out with one clean swoop, paying off your loan in full under the initial contract terms, this rarely happens. In fact, the average payday borrower takes out 11 loans in one year. This spells disaster, as the annual interest rate can be as high as 300 percent. It's easy and necessary to tell yourself that you'll be the exception, but beware of how easy these lenders make it to roll those loans over and keep you indebted indefinitely. The very loans you needed to make ends meet actually spread you even thinner, making it tougher to pay on other debts, a direct threat to your credit score, not to mention your general quality of living. END
 TITLE: Overcome Negative Stigmas of Bankruptcy CONTENT: Four Stigmas Not To Believe About Bankruptcy\n--------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 2, 2017_\nIf you have exhausted all of your alternatives to bankruptcy, but still find yourself shying away from the process, ask yourself why. One of the many reasons people choose not to file bankruptcy, even if it would benefit them, is the stigma associated with it. If it's shame or guilt holding you back, or fear of your financial future, you're not alone. These are common feelings associated with common thoughts that you need to let go. Although the stigma of bankruptcy varies greatly from person to person, you need to consider the actual benefit of filing before you decide against it.\nEmotional and Social Stigma\n---------------------------\nIt's common to equate success with financial status and stability. The more money you have, the better you must be at your job. The better you are at your job, the smarter and more talented you must be. With ingrained beliefs like these in today's society, it's no wonder people feel so much shame associated with filing for bankruptcy.\nThe fact is, authentic success is not defined by the jobs we hold or the money we make. Our success is defined by how we live our lives, evolve, and learn from our mistakes.\nIf you determine bankruptcy is the best option for you, it's because you recognize it as the smartest way for you to move forward to create the kind of successful living you want for yourself and your family.\nFinancial Stigma\n----------------\nIt's common to equate debt with financial intelligence or responsibility. The more quickly you pay down your debt, the better you must be at managing your money. On the flip side, the more you let debt balloon out of control, the worse you must be at keeping your spending in check.\nThe fact is, the financial problem that compels most people to file for bankruptcy stems from a reason beyond their control — medical debt. Even those with health insurance often find themselves in thousands of dollars in debt they cannot afford to pay due to high deductibles. Bankruptcies stemming from credit cards are closely tied to the struggle to make ends meet in the wake of the recession. And while student loans cannot be discharged in bankruptcy, they are an indirect contributor for those living off credit cards just so they can make the monthly loan payments.\nIf you determine bankruptcy is the best option for you, it's because you're smart enough about money to know it's the only way to improve your financial situation.\nPersonal Failure Stigma\n-----------------------\nIt's common to equate the fulfillment of a financial responsibility with character and integrity. If you pay your bills on time, you're good. If you're late, you're bad. If you don't pay them at all, you're worse.\nThe fact is, who you are as a person has nothing to do with the money you pay, owe, or make. Your financial situation reflects just one aspect of your life yesterday, not who you are today or who you are going to be in the future. And that past aspect is often one that represents a situation beyond your control, such as a job loss or medical expense.\nIf you determine bankruptcy is the best option for you, it's because you're the kind of person who's big enough to admit you need, and deserve, a second chance.\nCredit Failure Stigma\n---------------------\nIt's common to equate bankruptcy with bad credit — not just in the immediate aftermath, but for the 10 years it can stay on your credit reports.\nThe fact is, while bankruptcy certainly lowers a credit score considerably, most people are able to rebuild credit within a year or two. Why are lenders open to extending credit to those with a bankruptcy? Certainly, it's not out of the goodness of their hearts, but because you have to wait 8 years before you can file for bankruptcy again (i.e., borrowers who have recently filed for bankruptcy are likely to make good on their debts).\nIf you determine bankruptcy is the best option for you, it's because you know it's the best thing for your credit down the (not too distant) road. END
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 TITLE: Ways to Know if You Are in Debt Denial CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 14, 2017_\nOf all the things ripe for denial in this world, debt certainly earns its place somewhere toward the top of the list. Answer these 18 questions to help gauge where you may be on the debt denial side of things, supplemented with no-nonsense tips on what to do about it.\n1.  **Do you spend without a monthly budget?** If you're in debt, from credit cards and student loans, to home and car loans, you need a budget. It's the only way to be sure you're freeing up as much money as possible to put toward your debt instead of unnecessary monthly expenses.\n2.  **Do you set bills aside, unopened, letting them pile up or disappear into a mess of other paperwork?** Open your bills immediately, noting the due date and amount owed.\n3.  **Do you frequently discover misplaced, unpaid bills, past their due dates?** Set up a filing system in which bills (immediately opened) are organized visibly so as to ensure timely payment.\n4.  **Do you wait to pay bills until the last possible day, even though you have the money to pay them now?** Why wait? Paying now not only ensures prompt payment, but it's one less thing you need remember or worry about.\n5.  **Do you frequently pay your bills late?** Not only does this result in late payment fees but more often than not, negative listings on your credit report. Get organized and find a system that ensures you pay your bills early or, at the very least, on time!\n6.  **Do you only make minimum monthly payments on your credit cards?** As you probably know, you'll never pay down the debt this way, as your payments are probably only enough to cover the cost of interest fees. Always make more than your minimum payment, even if it's just an extra five dollars a month.\n7.  **Do you apply for new credit cards when your current cards are maxed out?** One of the best reasons to apply for a new credit card is as a means of improving your credit utilization ratio. Granted, if all your current cards are maxed out, a new card will do the trick in this regard. But not for long if it too is maxed out almost as soon as you get it.\n8.  **Do you incur long-term debt in order to take vacations?** If you're in debt and the only way you can afford a vacation is to incur long-term debt, plan a more affordable mini-vacation or day trip instead. By all means, charge the trip if it's something you can pay off within a month's time. But if it's expense you'll be paying for months, even years to come, you're a basic principle: no debt should last longer than the item purchased.\n9.  **Do you spend so much paying on debt that you have nothing left to set aside for emergency savings or retirement?** Pay yourself first, period. Even if it's just five dollars here, ten dollars there, over several years' time, savings add up.\n10.  **Did you buy a more fuel-efficient vehicle only to increase your spending via a new monthly car payment?** Of all the excuses to justify a major purchase, this is an especially attractive one. But do the math first! If the money you'll save on gas every month does not exceed the extra expense of a new car payment, the gas-guzzler you already own is the better deal.\n11.  **Did you buy a house you can't afford counting on a significant rise in your income 5, 10, 15 years from now?** It's not uncommon, or irrational, to believe your income will increase significantly in the years to come. But there's not guarantee, especially in these volatile economic times. You're always best-served buying a house you can afford now.\n12.  **Are you thinking about quitting your job without another lined up to cover the cost of not only your debt, but also your basic monthly living expenses?** If you're unhappy at work, by all means, start pounding the pavement for something new. But avoid any rash decision that leaves you vulnerable in today's job market. Even if you have a few months' savings to get you by, it may not be enough.\n13.  **Did the size of your debt increase considerably over the past 12 months?** Clearly you're living above your means. It's time to go through your expenses with a fine-tooth comb and make cuts anywhere and everywhere you can.\n14.  **Do you incur debt for purchases simply as a means of keeping up with the Jones'?** This is an especially tempting habit in today's tech-intensive world, from iPhones and iPads to flat screens and Xboxes. Instead of priding yourself on the latest and greatest, challenge yourself and your family to hold on to things as long as possible. In other words, if it's not broke, don't fix it.\n15.  **Do you allow your partner to continually make poor financial decisions, or to influence your financial decisions in a way, that incurs more debt than is prudent or necessary?** While both partners should have equal say in how shared money is spent, it is your right and responsibility to voice your opposition to spending habits that are unnecessarily deepening your debt.\n16.  **Do you spend money on things you don't need while your debts go unpaid?** Acquiring new things can be a fulfilling, though fleeting, experience. Try resisting the temptation whenever you can, instead putting the amount you would have spent toward paying down your debts. In the long run, freedom from debt is a fulfillment beyond compare.\n17.  **Do you frequently feel guilty for spending money while debts for previous purchases go unpaid?** This is your gut telling you something. Listen!\n18.  **Do you fantasize scenarios in which your debt magically disappears, like the day you win the lottery or that million-dollar-idea finally pays off?** Your brain power is far better utilized taking the practical steps toward getting out of debt today. END
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 TITLE: Questions to Ask Before Taking on New Debt CONTENT: Questions to Ask Yourself Before Taking on More Debt\n----------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 16, 2017_\nIt seems that piling on debt happens very quickly and rather easily. Americans have more than $10 trillion in residential mortgage debt, more than $2.4 trillion in other loans, of which over half is student loan debt, $885 billion in credit card debt, all of which consumers are paying an average interest rate in excess of 13 percent. These statistics seem to suggest Americans collectively may be borrowing a little too much money and borrowing is a little too easy. So, before you borrow any more money, you should be asking yourself these tough questions before you take on any more additional debt.\nCan You Use Cash Instead?\n-------------------------\nThe answer to this question will largely depend on what you are trying to purchase and how much cash you have on hand. For smaller purchases such as clothes, small appliances, vacations, or other luxury items, you need to ask yourself if you can pay cash for these items instead of adding this purchase to your already overextended credit card or line of credit. Do you really need to buy it and if so, are you willing to plunk down the cash for it. If so, then it is worth buying. If not, then skip the purchase as it probably is not a truly needed item and one which would be better off forgetting until later down the road. If you can't pay cash for it, you probably really don't need it.\nIs This the Most Cost-Effective Type of Borrowing Available?\n------------------------------------------------------------\nBefore taking out a loan on a large purchase, you need to make sure you are using the best borrowing vehicle available. In simple terms, is it cheaper (as in lower overall interest paid) to put the purchase on your credit card or to maybe use a home equity loan. If your credit card has a current interest rate of 22 percent but you can get a home equity loan for 10 percent, the choice seems a bit obvious don't you think?! Make sure to check out all avenues of borrowing before you make a large purchase, it will save you thousands in interest over a few years.\nAre You Getting an Ideal Repayment Term?\n----------------------------------------\nShorter loans typically carry lower interest rates. However, if a longer mortgage or car loan leave more room in your budget to avoid charging so much on your credit card, you might be better off because mortgage and car loan rates are usually much lower than credit card rates.\nWill the Monthly Payments be Affordable?\n----------------------------------------\nNever borrow without taking a careful look at the repayment schedule, and knowing how you will come up with the money for those payments. The best way to know whether or not you will be able to make these payments every month is to work up a monthly budget. Listing out all of your monthly expenses and then deducting that from your monthly net income will show you in black and white how much money you have left over and if you can afford these new payments.\nWill These Payments Crowd Out Future Needs?\n-------------------------------------------\nAnswering this question may take a little forethought and planning on your part first. For example, before you purchase the latest and greatest flat screen television are you anticipating purchasing a refrigerator or computer in the near future? If so, buying the TV may not be the best thing to do at the moment when you know you are going to have another large purchase coming very shortly.\nWill the Item Last as Long as the Repayment Terms?\n--------------------------------------------------\nAvoid debts that will take longer to repay than the useful life of the purchase. A great example of this is buying a used car. Would you really want to put 5 year loan on an older used car that might not last you 5 years? Because if the car dies after 3 years, you are still responsible for 2 more years of payments on a car you are no longer driving. Doesn't really make much sense, does it? Think long and hard about the useful life of the purchase and does it make sense to the length of the loan terms.\nWill This New Debt Hurt Your Credit?\n------------------------------------\nAs we have gone over in other articles, the amount you owe determines 30 percent of your credit score. So, the more you borrow, the lower your score, the higher the interest rates you are going to be offered. Bottom line, heavy borrowing can be made more expensive if your low credit score is raising your interest rates, which in turn higher interest rates make debt more difficult to pay down.\nAre There Other Lenders Offering a Better Deal?\n-----------------------------------------------\nThe financial industry is very competitive so you should always get multiple quotes on loans and shop around for the best interest rates. Bank and credit card companies have invested heavily on loan and credit acquisitions and the ability to make the process as easy as possible for us consumers. Because getting credit can be so easy, don't fall into the trap of settling for the first loan and\/or rate quote that comes your way. Make sure to get at least 3 other quotes so you can compare loan products and get the best one for your situation.\nAnswering these question truthfully and honestly with yourself will go a long way in lessening your overall debt. Getting into debt can be fairly easy, but getting out is the hard part. Don't let yourself fall into the trap of heavy borrowing because you might not be able to get out from under it. END
 TITLE: Prevent Declaring Bankruptcy From Medical Bills CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: October 2, 2017_\nIf you lose your job due to a debilitating disease, you lose your health insurance just when you need it the most, overwhelming medical bills are the number one reason people file for bankrutcpy. From doctors' visits, to hospital stays, to medications, the cost to you and your family can be astronomical. Fortunately, there are programs in place that can significantly help you with your medical expenses so you can focus your energy where it's needed most: on your health and your relationships with loved ones.\nWhat is COBRA?\n--------------\nCOBRA (Consolidated Omnibus Budget Reconciliation Act) provides for the continuation of health insurance coverage — for you and other qualifying beneficiaries — when job loss occurs for certain specific events, including \"voluntary or involuntary termination of employment for reasons other than gross misconduct.\"\nWhile the premium paid for COBRA may be greater than what you paid in as an employee, the group rate COBRA guarantees you should make the cost considerably less than if you were to take out an individual health care plan.\nWhile you are eligible to receive coverage under COBRA for up to 18 months after termination, this may be extended to 36 months in the event disability can be proven within the first 60 days of COBRA coverage.\nWhat is Medicare?\n-----------------\nMedicare is a federal health insurance program for people:\n*   Age 65 or older\n*   Under age 65 with certain disabilities\n*   All ages with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a kidney transplant)\nWhat does Medicare cover?\n-------------------------\nMedicare includes:\n*   Part A Hospital Insurance for help with inpatient care in hospitals (including critical access hospitals and skilled nursing facilities), hospice care and some health care. No monthly premium should be required for this coverage, as beneficiaries typically have already paid into this program via payroll taxes when previously employed.\n*   Part B Medical Insurance for help with doctors' services and outpatient care, as well as some other services not covered by hospital insurance. A monthly premium is required for this coverage.\n*   Prescription Drug Coverage, for which beneficiaries pay a monthly premium.\nWhat is Medicaid?\n-----------------\nMedicaid is a financial assistance program for low-income and disabled people, funded by federal, state and local taxes.\nWhat does Medicaid cover?\n-------------------------\nMedicaid covers:\n*   Laboratory and X-ray services\n*   Inpatient hospital services\n*   Outpatient hospital services\n*   Health screenings for children and treatment if medical problems are identified\n*   Comprehensive dental and vision services for children\n*   Family planning services and supplies\n*   Long-term care services and supports\n*   Medical and surgical dental services for adults\n*   Pediatric and family nurse practitioner services\n*   Services provided in health clinics\n*   Nurse-midwife services\n*   Nursing facility services for adults\n*   Home health care services for certain people\n*   Prescription drugs\nMedicaid also covers the following for children (and may cover the same for adults, depending on your state):\n*   Physical, occupational, or speech therapy\n*   Eye doctor visits, eyeglasses\n*   Audiology, hearing aids\n*   Prosthetic devices\n*   Mental health services\n*   Respite and other in-home long-term care\n*   Case management\n*   Personal care services\n*   Hospice services\nCan I have both Medicare and Medicaid?\n--------------------------------------\nYes, if you qualify, Medicaid can be used to pay for services that are not covered by Medicare.\nWhat is SSDI?\n-------------\nSocial Security Disability Insurance (SSDI) supplements the income of those whose physical or mental conditions prevent them from working. Eligibility depends upon the condition being terminal, or projected to last at least 12 months.\nWhat is SSI?\n------------\nSupplemental Security Income (SSI) is supplemental income for low-income people 65 or older, as well as disabled people based on the same requirements outlined for SSDI.\n### Can I have both SSDI and SSI benefits?\nYes, this may be possible if you are approved for SSDI, but only for a low monthly payment as a result of minimal work\/wages in recent years.\n### How do I apply for these assistance programs?\n*   For COBRA, your employer is required by law to provide you with the insurance application paperwork within 30 days of termination.\n*   For Medicare go to Medicare.gov.\n*   For Medicaid, go to Medicaid.gov.\n*   For SSDI, go to SocialSecurity.gov.\n*   For SSI, go to SSA.gov\/ssi.\nWhile you may have countless considerations to be made during this trying time, make it your number one priority to apply for these programs as soon as possible. Ask for the help of a family member or friend to help with the application process, need be. While it may feel too overwhelming to deal with such matters right now, you'll benefit most by taking care of this important business sooner than later. END
 TITLE: Prevent Declaring Bankruptcy From Medical Bills CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
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 TITLE: Bad Money Habits That Keep You in Debt CONTENT: Break Bad Spending Habits That Keep You in Debt\n-----------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 18, 2017_\nAre you one of those people who live from paycheck to paycheck? When it gets closer to payday, do you look at your checking account balance and see that it is almost at zero and you wonder where did all your money go? Without even thinking about it, there are things you subconsciously do in your every day life that contribute to you not being able to get out of debt. You will see, as evident from this article, there are habits you probably have that are keeping you broke and not enabling you to start digging your way out of debt.\nAsk For a Raise\n---------------\nIf you have been working at the same place for a while, ask for a raise at your next performance review. Even in this tough economy, it doesn't hurt to ask and the worst thing that could happen is your boss telling you no. You will never get anything unless you ask for it.\nMaking a little extra money every month could be helpful in paying down your credit cards or socking it away into a 401K or a similar money making account. Speaking of credit cards, call the credit card company and ask them to lower your interest rate. Tell them you are working on paying it off and they might be interested in helping you. Again, the worse that can happen is them telling you \"no\" — but you never know what they will say unless you try.\nStop Carrying Cash\n------------------\nYou know that paying with plastic is bad, but carrying lots of cash can be just as bad, if not a worse, habit. Cash can give you the feeling of having extra money just sitting in your wallet waiting to be spent. Studies have shown, if you have to buy something with a credit card, you will actually think about making that purchase a little bit harder. If you have cash in your pocket, you are more likely to buy that item without even giving it a second thought.\nIf you are going to carry cash, make sure to bring only enough cash for what you need and leave the rest at home. And, another study showed that if you carry large bills, like fifty's or hundred's, you are more likely to not spend those as readily as if you have a pocket full of five's or ten's. It is harder for someone to break a large bill for a small purchase.\nStop Emotional Shopping\n-----------------------\nIt was a rough week, or a good one, or you want to reward yourself for losing a few pounds, so you go shopping. You earned that new dress, that new gadget — it was on sale, too. Letting your mood dictate your buying decisions is the quickest way to go broke. Sober up before shopping. Do you need these items, and can you afford them? Be honest with yourself. Reward yourself by doing something that doesn't cost, like taking a nice bath, or spending time with your loved ones and\/or friends.\nAnother bad habit is making impulsive purchases. You see a great sale on the Internet or in a store and you think you can't pass it up because it is too good to be true. Curb your urges to purchase items at the last minute or just because they are on sale. Ask yourself if you really need this item and can you really afford it at this time. Chances are you will answer \"no\" to both questions and you can save yourself a lot of money.\nStick to Your Goals\n-------------------\nHere is a typical scenario — it is Wednesday and you are tired and you are on your way home from work. You have no idea what to make the family for dinner so you stop to get some take-out at the GMO Chicken Shack. A recent study showed the average family of four spends over $4,000 a year on eating out — a very expensive habit that will get you broke in a hurry. Try spending Sunday planning your week of meals and maybe cooking some of it ahead and freezing it — you will not only save a lot of money but you will eat way healthier.\nMaking a plan and setting goals are the best way to break bad habits. It you have a goal to save a certain amount of money each month and put it into a savings account, this will keep you from slipping back into your old habits and keep you focused on creating more productive habits.\nForget About Keeping Up With the Joneses\n----------------------------------------\nIf you're constantly comparing yourself with others and trying to outdo the neighbors with material goods, you could be fueling a debt addiction. One-upping friends and family by purchasing luxuries on credit can turn into a competitive sport — a costly one. Avoid serious financial problems by living within your means and buying only things you can honestly afford. Trying to keep up with the Joneses can be the fast track to debt problems or even bankruptcy.\nDepending on Cash Back Credit Cards\n-----------------------------------\nIf you tend to pay with credit just because you know you are \"earning\" a portion of it back in the form of cash or rewards points, you could be fueling a dangerous addiction to credit card spending. Cash-back credit cards typically pay you back a very small percentage of your charges — think $1 for every $100 you charge. Unless you're very disciplined about paying off your entire balance by month's end, the money you earn back will barely cover the interest charges you acquired on that spending spree.\nThe most important thing about breaking bad habits is actually recognizing them in the first place. If you can relate to any of the above habits, then, you need to take a hard look at your bad habits and think about how you can change them into a good habit. Digging yourself further and further into debt does not take a lot of effort and it is the small things that hurt your financial future the most. END
 TITLE: Learn to Eliminate Debt and Reduce Your Debts CONTENT: Debt Elimination and Debt Reduction Strategies\n----------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 14, 2017_\nHave you taken on more debt than you can handle? You're not alone. Thousands of Americans are in the same boat, with many of them defaulting on loans, losing their homes and cars, and some even filing for bankruptcy. It doesn't matter how much money you make, if you can't live within your means, you will become a slave to your creditors.\nThis article is by no means a comprehensive treatise on financial planning, but rather a list of strategies you can use to start eliminating and reducing your debt.\nWhy Are You in Debt?\n--------------------\nMoney is a powerful force that can destroy you if you let it. You have to learn to control your money instead of letting it control you. If you don't, you'll never get out of debt and will continue to dig a deeper hole.\nBe brutally honest with yourself and really examine the reasons why you are in debt. We are not referring to financial conditions which may be beyond your control, but about the times when you let the lure of shiny new toys control you. Ask yourself the following questions - and be honest in your response!\n1.  Do you buy stuff to mask your own insecurities?\n2.  Are you using money and buying things as a way to comfort yourself?\n3.  Do you feel you have to compete financially with your friends, neighbors, or family members?\n4.  Are you trying to impress someone? \n5.  What is it that compels you to buy something right now?\n6.  Why do you lack self-control to buy it later or may never?\nThese are serious questions which must be answered before you attempt to reduce your debt with any kind of budget or financial system. Otherwise, it's like treating cancer with a Band-Aid. You might even consider psychological counseling for your money difficulties.\nHow Much Debt Do You Have?\n--------------------------\nIt is important you be fully aware of how much debt you actually have no matter how painful it is to closely scrutinize this aspect of your finances. Take a sheet of paper, write down the amounts of all your debts and total them. Keep this total amount fixed in your mind. It's been said that pain and pleasure are powerful motivators. If the image and\/or idea of all that debt is causing you enough pain, the theory is that you will take aggressive measures to change your behavior and start on the elimination path.\n### Put Away Your Credit Cards\nPut away your credit cards and make a commitment not use them. If you don't think you can kept the pact you've just made with yourself, give them to a friend or relative to hold. Or better yet, cut them up. The thing you don't want to do is cancel or close your accounts. Closing accounts that are old (60 months or older) are valuable to your credit score and can have a negative impact on your credit score if you close them.\n### Make Payments on High Interest Loans and High Interest Credit Cards First\nPaying off the small debt may offer greater relief, it is not necessarily the best approach to minimizing your debt burden. If you have some extra money at the end of the month, put that extra money on the loan with the highest interest rate. By making a dent on the principle owed, it will lower the amount of interest you will pay on that money which will in turn save you money in the long run.\nAccording to a study done by a consumer behaviorist at the Olin Business School at Washington University in St. Louis, people really like closing accounts. That is, they will close a small debt account that has a low interest rate at the expense of paying down a larger loan with a higher interest rate. Throughout a series of debt-management experiments, the researchers found that participants consistently paid off small debts first, even though the larger debts had higher interest rates. In fact, no participant in their study used their cash to pay off the loan with the highest interest rate.\nBottom line, paying off your highest interest rate credit card first will shave months off your debt. With your other debts, continue paying just the minimum. After you finish paying off your highest interest rate card, move on to the next highest interest rate card. Roll over the amount you paid each month from your first card to pay off this one. Don't be tempted to use the money elsewhere - stay disciplined. You’ll pay off the second card even more quickly. Continue this strategy until all your debts are paid.\n### Contact Your Credit Card Company\nIf you find yourself unable to pay your bills on time, communicate with your creditors. Be honest with them and explain your financial situation. Ask them to reduce your payments or the interest rate. Tell them you plan to pay off the debt. The worst thing you can do is not communicate. They may assume you are unwilling to pay your bills and get nasty.\n### Transfer Balance to a Lower Interest Card\nIf you can, try to obtain a lower interest credit card and then transfer the balance of the high interest card to that one. Make sure to read the fine print when making this transfer. Sometimes the wording of these low interest cards sounds good at first until you really dig down to the nitty gritty and read the fine print of the contract.\nSometimes these low to zero interest credit cards are only available to those with good to excellent credit. If you have not been late on your payments and think your credit may be pretty good, give it a shot. Also, some offer introductory rates of 0% and then jack it up to 12% after the honeymoon period, make sure you stay away from those types of cards. Try to stick with a card that starts off with a low interest rate that does not increase.\n### Borrow Against a Life Insurance Policy\nOne way to get out from under this enormous amount of credit card debt is to find some other sources of money from which you can borrow or withdraw. A great source may be a life insurance policy with cash value you can borrow against. We know, you are still borrowing money to pay off borrowed money, but the interest rate on the life insurance policy will be far lower than what you are paying the credit card company. Pay off the card with the highest interest rate and then you can make payments back to the life policy.\n### Negotiate a Better Interest Rate with Your Creditor\nIf you cannot get a lower rate card and you do not have any other means to get some additional funds, try negotiating a better interest rate with the credit card company. Let them know about your situation and tell them that if they do not work out some new terms with you, you may have no choice but to file for Chapter 7 bankruptcy. More often than not, a creditor would rather work out a deal with their customer than to completely lose the entire account.\n### Roll Your Debts into a Second Mortgage\nIf you own your home, you might consider a debt consolidation loan. This kind of loan is a second mortgage on your property which allows you to consolidate your debts into one payment. Some loan programs require no equity or appraisal. You can use this loan to consolidate credit card bills, car payments, or any other bills. Interest on this loan may be fully tax deductible depending upon your situation. Consult your tax advisor. As with any home loan, this is a lien on your property. If you sell your home, you must pay off both your first and second mortgages. In addition, although you may be making lower monthly payments, you may be paying for a longer time period than if you paid off each individual debt.\n### Consider Consumer Credit Counseling\nMake an appointment to see a credit counselor. You should be able to find a free service in your area that will help negotiate payments with your creditors, and give you good financial advice. You can find one on this site: NFCC.org. They'll give you a fresh perspective on your financial burden, and help you realize you're not the only one dealing with debt. They'll also be candid with you and tell you whether or not you should consider bankruptcy as an option.\nHow to Live Debt Free\n---------------------\nNow that you've reviewed some of the personal reasons you've found yourself in debt, and taken some drastic measures to attack your debt, it's time to develop a plan to determine where all your money is going, and develop a healthy financial strategy. You must be able to account for every penny you spend each month. Don't worry, you won't have to cut your spending yet. Here's a simple method to develop a plan which may fit your comfort zone.\n#### Step 1\nTake a sheet of paper, and write \"Master Budget\" at the top. On one side, list all your relatively fixed expenses (mortgage\/rent, telephone, electric, water, gas, car, credit card minimums, etc.) Better yet, if you have a smart phone, there are tons applications online you can download to track your expenses and make a budget. A nice thing about using a smart phone is that you always have it with you.\n#### Step 2\nNow comes the tough part. You must estimate how much you spend on various expenses like food, eating out, entertainment, stuff for the house, school, clothing, car repair, gasoline, etc. If you have old receipts, you can use them as a guide for real expenses.\n#### Step 3\nTrack all your expenditures for one month. At month's end, total each category, and you'll know exactly how much you spend on everything.\nIf you're not using a smart phone application, you'll need to carry your budget notebook where you go. Carry this notebook with you wherever you go. Be very detailed on your categories. For example, one category might be \"Eating Out.\" Under this heading, write down the date, description, and the dollar amount for each time you eat out.\nNo matter how you do it, tracking your expenses allows you to see exactly where all your money is going. If you don't know where your money is going, how can you expect to control it?\nAfter you've totaled your categories, transfer them and their respective expense totals to your Master Budget spreadsheet.\n#### Step 4\nList your take home income after taxes on your Master Budget. You might want to develop different budgets based on your pay periods. Should you pay the phone bill on the first of the month, or would it be better to pay it later in the month? You may find one pay period has a tighter budget than the other because you have to pay the bigger bills like your mortgage, rent, or car payment at the beginning of each month. Some lenders will let you change the payment date - this might be a good way to space out your large payments.\n#### Step 5\nNow the challenge begins. Balance your income and expense categories, so you stay within your budget. Leave yourself a $200 cushion in your account. Take a long hard look at your expenses and see how you can reduce them. Let’s look at the category of \"entertainment,\" which may include dinners out, movies, movie rentals, plays, etc. Let’s say you’re currently spending $75 per weekend on eating out and entertainment. That’s $300 per month. Why not only spend $100 and take $200 to make a larger payment on one of your high-interest credit card bills?\nYou may be shocked to realize how much you spend on little things. For example, if you spend $2 per day on gourmet coffee, you spend $40 per month just on coffee. Why not buy a nice coffee maker, and make your own, or at least have coffee out only once or twice a week?\nYou'll have to play around with the amounts you set for your expenses categories. You don't want to completely cut out your fun. Otherwise, you'll give up on your budget completely. Cut back a fair amount, and see how it feels. Adjust as you go and ask yourself these questions:\n*   Could we sell our home and buy or even rent a smaller place until we get back on our feet financially?\n*   Should we move to a different area where housing is less expensive?\n*   Do I really need to buy premium gas?\n*   Why not wait and rent a movie, instead of paying $10 to $12 to go to the theater?\n*   Do I really need all those magazine subscriptions?\n*   Do I really need those movie channels? Could I live without cable TV?\n*   Do I really use my bottled water service? What are some cheaper alternatives?\n*   Do I really need a new dress, suit, purse, jewelry this month?\nHow you answer these questions all depend on how quickly you want to get out of debt.\n#### Step 6\nBy now, your Master Budget should list every category where you money goes. When you start living out your new budget on your the next pay period, enter into your spreadsheet (paper or electronic) the individual amount you have allotted for each category at the top of its own page. Think of each category page as a mini-account log. Every dollar you spend must be categorized and deducted from its appropriate category account balance.\nIf you're recording expenses in a notebook, remember to carry your notebook with you everywhere. If you're doing it on a smart phone, you will probably have your spreadsheet with you at all times.\nWhen you get to zero in one category, you can't spend any more in that area. However, what you'll find is that you have other categories that have money left over at the end of your budget period. You can roll these amounts over to categories you've zeroed out, or better yet, use those extra dollars to hammer away at your debt. Revisit your master budget and adjust it accordingly.\nStill looking for ways to make that budget stretch further? We have lots of articles on budgeting and saving money with tips ranging from using coupons to save money to how to start saving for retirement. With all of this vast information at your fingertips, there is no better time than now to eliminate your debts and build up your nest egg. END
 TITLE: Help Finding a Good Bankruptcy Attorney CONTENT: 50 Questions to Ask When Interviewing a Bankruptcy Attorney\n-----------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 2, 2017_\nAs though filing for bankruptcy isn't stressful enough, you're further challenged with finding a competent bankruptcy attorney you can trust. Naturally, it can be overwhelming, but it need not be difficult. It will most likely be a totally unfamiliar process and can be confusing and stressful. Most attorneys offer a free initial consultation.\nTake this opportunity to meet with multiple attorneys and ask the kind of questions that will help you choose the right one. The toughest task is knowing what to ask of a potential bankruptcy attorney, but even that is made simple with this handy list. The specifics of your case, financial situation and personality are unique, so judging an attorney's answers to many of these questions will be subjective. Others are pretty straightforward, implying a definitive yes or no. A few of the questions, though, are a little more complicated, for which brief explanations follow.\n*   Questions to Determine Background and Experience\n*   Cost of Bankruptcy Attorney Services\n*   Determining the Particulars of Your Case\n*   Post Bankruptcy Procedures\nQuestions to Determine Background and Experience\n------------------------------------------------\n#### 1\\. How Long Have You Been Practicing Bankruptcy Law?\n*   BAD ANSWER: A few months.\n*   GOOD ANSWER: Three to five years.\n* * *\n#### 2\\. How Long Have You Been With This Particular Firm?\n*   BAD ANSWER: A few months.\n*   GOOD ANSWER: Three to five years.\n* * *\n#### 3\\. What Percentage of Your Practice is Devoted to Bankruptcy Law?\n*   BAD ANSWER: Less than 25 percent.\n*   GOOD ANSWER: More than 50 percent.\n* * *\n#### 4\\. What Percentage of Your Practice has Been Focused on Bankruptcy Since the New Laws Went Into Effect in 2005?\n*   BAD ANSWER: Less than 25 percent.\n*   GOOD ANSWER: More than 50 percent.\n* * *\n#### 5\\. How Many Bankruptcy Cases Have You Completed Since 2005?\n*   BAD ANSWER: Five.\n*   GOOD ANSWER: Five Hundred.\n* * *\n#### 6\\. On Average, How Many Bankruptcy Cases Do You Handle Per Month?\n*   BAD ANSWER: One or two cases.\n*   GOOD ANSWER: Ten to twenty cases.\n* * *\n#### 7\\. What Percentage of your Bankruptcy Clients are Debtors and What Percentage are Creditors?\n*   BAD ANSWER: Twenty-five percent are debtors and 75 percent are creditors.\n*   GOOD ANSWER: Seventy-five percent are debtors and 25 percent are creditors.\n* * *\n#### 8\\. What Percentage of Your Bankruptcy Clients are Individuals vs. Businesses?\n*   BAD ANSWER: Twenty-five percent are individuals and 75 percent are businesses.\n*   GOOD ANSWER: Seventy-five percent are individuals and 25 percent are businesses.\n* * *\n#### 9\\. How Many of the Bankruptcy Cases You Have Handled Were Moved for Dismissal for Abuse by the U.S. Trustees?\n*   BAD ANSWER: Quite a few.\n*   GOOD ANSWER: Only a couple.\n* * *\n#### 10\\. What Sort of Relationship do You Have With People in the Court System?\n*   BAD ANSWER: I know who they are.\n*   GOOD ANSWER: We know each other very well.\n* * *\n#### 11\\. Do You Know the People Evaluating my Case?\n*   BAD ANSWER: No.\n*   GOOD ANSWER: Yes.\n* * *\n#### 12\\. Do You Know the Local Bankruptcy Judges?\n*   BAD ANSWER: No.\n*   GOOD ANSWER: Yes.\n* * *\n#### 13\\. Do You Know the Local Chapter 7 Trustees?\n*   BAD ANSWER: No.\n*   GOOD ANSWER: Yes.\n* * *\n#### 14\\. Do You Know the Local Chapter 23 Trustee?\n*   BAD ANSWER: No.\n*   GOOD ANSWER: Yes.\n* * *\n#### 15\\. Do You Know the United States Trustee in Your Area?\n*   BAD ANSWER: No.\n*   GOOD ANSWER: Yes.\n* * *\n#### 16\\. Have You Ever Received an Ethics Disciplinary Complaint?\n*   BAD ANSWER: Yes.\n*   GOOD ANSWER: No.\n* * *\n#### 17\\. Do You Have Malpractice Insurance?\n*   BAD ANSWER: No.\n*   GOOD ANSWER: Yes.\n* * *\n#### 18\\. Have You Ever Been Sued for Malpractice?\n*   BAD ANSWER: Yes.\n*   GOOD ANSWER: No.\n* * *\n#### 19\\. Are You a Member of Any Voluntary Bankruptcy Bar Groups?\n*   BAD ANSWER: No.\n*   GOOD ANSWER: Yes, I am a member of the National Association of Consumer Bankruptcy Attorneys (NACBA).\n* * *\n#### 20\\. How is Your Bankruptcy Practice Different From Your Competition?\n*   BAD ANSWER: We're all pretty much the same.\n*   GOOD ANSWER: We get to know our clients as people first, cases second. We also have a really effective follow-up program for helping you rebuild your credit and make smart, sound financial decisions in the future.\n* * *\n#### 21\\. Can I Have the Names and Contact Info for Previous Clients Whose Bankruptcy Cases Were Similar to Mine?\n*   BAD ANSWER: No, I wouldn't be comfortable with that, and neither would my clients.\n*   GOOD ANSWER: Why of course!\n* * *\nCost of Bankruptcy Attorney Services\n------------------------------------\n#### 22\\. What Type of Costs Can I Expect in my Bankruptcy Case?\n*   BAD ANSWER: It depends.\n*   GOOD ANSWER: Federal filing fee and attorney fees.\n* * *\n#### 23\\. What Fees am I Expected to Pay You, and What do Those Fees Cover?\n*   BAD ANSWER: Fees vary.\n*   GOOD ANSWER: For Chapter 13, the federal filing fee is $274 and attorney fees could run $2,000 to $3,000. For Chapter 7, the federal filing fee is $299 and attorney fees could run from $1,000 to $2,500. These fees should cover everything necessary to complete your case, provided there is not some rare, unforeseen issue that requires more time and attention.\n* * *\n#### 24\\. What is Your Retainer Fee and is it Refundable?\n*   BAD ANSWER: $1,000 non-refundable fee.\n*   GOOD ANSWER: $100 or more, depending on what you can afford. And yes, the fee is refundable.\n* * *\n#### 25\\. Do You Use a Written Fee Agreement?\n*   BAD ANSWER: No.\n*   GOOD ANSWER: Yes.\n* * *\n#### 26\\. Do You Have Options for Payment Plans?\n*   BAD ANSWER: No.\n*   GOOD ANSWER: Yes.\n* * *\n#### 27\\. How do You Expect to be Paid?\n*   BAD ANSWER: In cash, up front, today.\n*   GOOD ANSWER: We can work out a payment plan that works for both you and the firm.\n* * *\n#### 28\\. Have You Ever Gone to Arbitration or Court Over Your Fees?\n*   BAD ANSWER: Yes.\n*   GOOD ANSWER: No.\n* * *\nDetermining the Particulars of Your Case\n----------------------------------------\n#### 29\\. Why or Why Not is Bankruptcy a Good Idea for me, Based on my Unique Situation?\n*   BAD ANSWER: You qualify, so it's good for you.\n*   GOOD ANSWER: Bankruptcy may be a good idea for you if you have exhausted all your possibilities for paying off your debt on your own.\n* * *\n#### 30\\. What Other Options are Available to me Other Than Bankruptcy?\n*   BAD ANSWER: In your situation, there are no other options.\n*   GOOD ANSWER: There are always options to bankruptcy. You may try re-evaluating your budget so as to start paying down your debts. You may try negotiating with your creditors. Or you may seek help from Consumer Credit Counseling Services.\n* * *\n#### 31\\. After Reviewing my Case, What do you See as Some Potential Challenges that Could Arise?\n*   BAD ANSWER: It is impossible to tell.\n*   GOOD ANSWER: This varies widely from case-to-case. It may be something as simple as not being able to discharge everything you'd hoped to, or a more serious issue that threatens the bankruptcy case itself.\n* * *\n#### 32\\. How Will Bankruptcy Hurt Me?\n*   BAD ANSWER: You're getting out of debt. What could be bad about that?\n*   GOOD ANSWER: Bankruptcy will negatively impact your credit score. The better your credit before bankruptcy, the harder the hit you'll take. Chapter 7 will stay on your credit report for 10 years, Chapter 13 for 7 years.\n* * *\n#### 33\\. How Will Bankruptcy Help Me?\n*   BAD ANSWER: Isn't it obvious?\n*   GOOD ANSWER: Bankruptcy gets creditors offer your back, allows you to keep some of your assets under certain circumstances and, generally, gives you a fresh start.\n* * *\n#### 34\\. Which of my Debts Can I Expect to be Discharged Through Bankruptcy?\n*   BAD ANSWER: Bankruptcy discharges just about everything.\n*   GOOD ANSWER: Bankruptcy discharges most unsecured debt, including credit cards and other unsecured loans.\n* * *\n#### 35\\. Which of my Debts Will Probably Not be Discharged Through Bankruptcy?\n*   BAD ANSWER: There's not much bankruptcy doesn't cover.\n*   GOOD ANSWER: Chapter 7 will not discharge taxes, tax liens, student loans, alimony, child support or debt incurred through fraud, among others. Chapter 13 will not discharge certain taxes, child support, alimony, student loans, fines and restitution, or debt incurred through fraud, among others.\n* * *\n#### 36\\. What Will be Your Gameplan if You Were to Proceed with my Case?\n*   BAD ANSWER: Like I always do - I will wing it.\n*   GOOD ANSWER: Much like question #31, this answer is very subjective. The most important thing to listen for is a plan of some kind relative to the specifics of your case.\n* * *\n#### 37\\. Will you be Doing all the Work on my Case, or Will you Assign it to Someone Else?\n*   BAD ANSWER: As long as we get your case settled, what difference does it make?\n*   GOOD ANSWER: I will be doing most of the work on your case. However, we do have other attorneys in the office who may help, as well as paralegals and other support staff who will assist as necessary.\n* * *\n#### 38\\. Will you be my Main Point of Contact for Updates, Questions, or Concerns Regarding my Case?\n*   BAD ANSWER: You can talk to whoever is free.\n*   GOOD ANSWER: Yes, I will be your main point of contact.\n* * *\n#### 39\\. How Many People on your Staff Will be Working on my Case?\n*   BAD ANSWER: However many it takes.\n*   GOOD ANSWER: Myself or another attorney with the firm will be handling the bulk of your case. However, we do have paralegals and other support staff who will assist as necessary.\n* * *\n#### 40\\. Who Will Accompany me in Court?\n*   BAD ANSWER: One of our paralegals.\n*   GOOD ANSWER: If not me, then another one of the attorneys with the firm. If indeed, another attorney does accompany you in court, you will have an opportunity to meet with him or her prior to the hearing.\n* * *\n#### 41\\. How Often Will you Keep me Updated About the Progression of my Case?\n*   BAD ANSWER: You don't need to worry about updates. We've got it handled.\n*   GOOD ANSWER: We'll let you know anytime there is a development in your case and, of course, you are welcome to contact us anytime you want to check its status.\n* * *\n#### 42\\. What will be Your Primary Mode of Contact?\n*   BAD ANSWER: We'll find a way to get a hold of you, if the need arises.\n*   GOOD ANSWER: We usually do a combination of phone and email, just to be sure we're both getting all the information we need to move your case forward in as timely a manner as possible.\n* * *\n#### 43\\. What are my Responsibilities, as the Client, in Helping to Strengthen my Case?\n*   BAD ANSWER: I think you've done quite enough already, don't you?\n*   GOOD ANSWER: The most important thing you can do is respond fully and promptly to our requests for the information we need to build your case.\n* * *\n#### 44\\. What Information do I Need to Provide you, Now and Throughout the Bankruptcy Process?\n*   BAD ANSWER: Don't worry about it today. We'll let you know what we need, when we need it.\n*   GOOD ANSWER: We do have a pretty comprehensive interview process. We'll be asking you a number of questions - verbally and\/or in writing - covering details about your income, assets and financial situation.\n* * *\n#### 45\\. What Should I do\/Not do Before my Bankruptcy Case is Completed?\n*   BAD ANSWER: Just go about your life as usual.\n*   GOOD ANSWER: Do not apply for any new credit, make any major purchases or withdraw large sums of money from your bank account. Under bankruptcy law, certain luxury purchases over $1,000 within 60 days of the bankruptcy filing are presumed non-dischargeable. And cash advances aggregating $1,000 within 60 days of the bankruptcy filing are also presumed non-dischargeable.\n* * *\n#### 46\\. How Long Before I Can Expect my Case to be Resolved?\n*   BAD ANSWER: You never know. These things are complicated.\n*   GOOD ANSWER: A typical Chapter 7 bankruptcy case is open for approximately 4 months. Chapter 13 is much more lengthy, as it involves a payment plan spanning up to 5 years.\n* * *\nPost Bankruptcy Procedures\n--------------------------\n#### 47\\. How Will my Credit Score be Impacted by a Bankruptcy Filing?\n*   BAD ANSWER: Bankruptcy shouldn't affect your credit score much at all.\n*   GOOD ANSWER: The higher your credit score before bankruptcy, the harder the hit you'll take. If your score is already poor, you probably won't see as dramatic of a drop.\n* * *\n#### 48\\. Will Filing Bankruptcy Affect my Ability to Get a Job?\n*   BAD ANSWER: Well, a bankruptcy doesn't look good.\n*   GOOD ANSWER: Bankruptcy law prohibits discrimination based upon a debtor filing for protection under bankruptcy law. That said, an employer is within their legal right to request a copy of your credit report. So a current or potential employer may know you have a bankruptcy. Legally, however, a bankruptcy cannot impact the employer's decision to retain or hire you for employment.\n* * *\n#### 49\\. How May my Spouse's Personal Property and Credit be Affected by my Bankruptcy? (if not filing jointly)\n*   BAD ANSWER: Isn't getting your debts discharged what really matters most?\n*   GOOD ANSWER: Your spouse should not be affected, provided you do not jointly own any of the personal property included in the bankruptcy.\n* * *\n#### 50\\. What Sort of Follow-Up Support do You Offer Your Clients?\n*   BAD ANSWER: After your bankruptcy case is settled, you're pretty much on your own.\n*   GOOD ANSWER: We offer six months to a year of support after the date of your bankruptcy filing. We can also be helpful in giving you advice regarding the rebuilding of your credit and the creation of a budget.\n* * *\nThough it is not necessary you ask these questions word-for-word, this list is at least a good place to start. Make notes from it or simply print out the entire list and take it in with you to the initial consultation. If you sense any hesitancy or judgment on the part of the attorney in response to these questions, move on. Any reputable bankruptcy attorney worth his salt should be ready and willing to answer any questions you may have in order to win your business. You may be at the mercy of the judge in the courtroom, but in the client-attorney relationship, you are the boss. END
 TITLE: Help Finding a Good Bankruptcy Attorney CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Learn How to Handle the Stress of Being in Debt CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 10, 2017_\nYou are not a bad person if you are facing the sobering fact that you can't pay your bills. Life happens. It's a common tale these days to hear people talk about the tough times they've faced during the recent recession. However, financial crisis can occur just about any time. The three major causes of bankruptcy are still medical bills, divorce and loss of job. It's rare you hear about someone who refuses to pay bills \"just because.\"\nYou Are Not Alone\n-----------------\nWith so many people out of work, a large population of Americans have to choose between starving their families and charging groceries on their credit cards. Try not to be so hard on yourself — after all, you are the only person judging you. No one else has to know the circumstances you are facing, and if some one does find out and is judging you negatively, they probably don't know the whole story.\nThe Rules Regarding Financial Security Have Changed\n---------------------------------------------------\nBefore the crisis, every financial expert in the U.S. proclaimed that having 6 month's of day-to-day expenses as savings in the bank would protect you from financial disaster. Unfortunately, people who followed this advice still had lots of trouble keeping their heads above water after finding themselves out of work for a year or more. As of February 2015, the average duration of unemployment hit 37.1 weeks. Going into debt can be seen as the only survival mechanism left.\nDealing With the Stress of Overwhelming Debt\n--------------------------------------------\nIt's easy to say and much tougher to do, but you need to stop worrying about the situation you are in. Worrying and ruminating will not help. Obsessing about your situation only adds a new problem to the serious ones you already face, stress and depression.\nProlonged stress and\/or depression are known to cause and excess release of the hormone cortisol which can cause the following health problems:\n*   Impaired cognitive performance.\n*   Suppressed thyroid function.\n*   Blood sugar imbalances such as hyperglycemia.\n*   Decreased bone density.\n*   Decrease in muscle tissue.\n*   Higher blood pressure.\n*   Lowered immunity and inflammatory responses in the body, slowed wound healing, and other health consequences.\n*   Increased abdominal fat, which is associated with a greater amount of health problems than fat deposited in other areas of the body. Some of the health problems associated with increased stomach fat are heart attacks, strokes, the development of metabolic syndrome, higher levels of \"bad\" cholesterol (LDL) and lower levels of \"good\" cholesterol (HDL), which can lead to other health problems.\nTry relaxation techniques to help you deal with the stress you are facing. The Mayo Clinic recommends several relaxation techniques for dealing with stress:\n*   Yoga\n*   Tai chi\n*   Listening to Music\n*   Exercise\n*   Meditation\n*   Hypnosis\n*   Massage\nDealing with Guilt\n------------------\nMany people feel guilty about \"hurting\" the credit card companies because they can not repay their credit card debt. Don't look at things this way. This is a business deal and there is no person being personally hurt here.\nThe reality is that credit card companies are making record profits. In addition, if you don't repay your debt, credit card companies are going to write it off as a business deduction.\nAs a matter of fact, the credit card companies, with their past unethical practices (there is not other way to categorize it) probably gave you a credit card you couldn't afford. This is why the Credit Card Accountability Responsibility And Disclosure Act was passed in 2009. While consumers are ultimately responsible for applying for and making purchases on credit cards, the credit card companies are somewhat at fault for their own losses should a person default on their debts.\nDon't Let Your Emotions Fall Prey to Debt Consolidation Vultures\n----------------------------------------------------------------\nWhile there are still some good debt consolidation firms out there, highly questionable firms are still lurking about. Before you try a firm that charges any fees, you should try your local Consumer Credit Counseling Service (CCCS) office. Located in every major town and city in the U.S., they can help you deal with your credit card debt and come up with a debt settlement plan you can afford.\nIf you do decide to go with a commercial debt consolidation company, review our blog post on new rules regarding the debt consolidation company disclosure requirements. Once you receive information in the disclosure, don't sign the contract right away. Read the information carefully so you know what you are getting into.\nTry Self Help Debt Settlement Techniques\n----------------------------------------\nYou are really capable of negotiating your debts on your own. Numerous readers have told me of their success in dealing with credit card companies and even collection agencies. We offer a complete free debt settlement guide on this site. Even if you go with a local CCCS or a debt consolidation firm, it's worth a read so you know what is going on with your finances.\nConsidering Bankruptcy\n----------------------\nSometimes bankruptcy can seem like the only solution. Have you carefully considered all the alternatives? For example, borrowing from your 401K, selling some personal items, negotiating with creditors? We have a complete article on bankruptcy alternatives that you might want to read.\nSometimes, believe it or not, the best route is to just not pay your bills if you're not in a position negotiate your debt or file a bankruptcy. Many people are afraid of this option because they might be sued or just don't know what will happen. If you'd like to know exactly what will happen if you just stop paying your bills, you can read our article, \"I'm in Credit Card Debt, I Can't Pay and Don't Qualify for Bankruptcy\". This article tells you exactly what will happen and when. It's definitely worth a read.\nIf you've weighed all the options and decided to go the way of bankruptcy, read up on our article about doing a Chapter 7 bankruptcy or a Chapter 13 bankruptcy.\nBeing in debt is highly stressful. Hopefully, this article gave you some tools to help you deal with it. Remember:\n*   You are not a bad person.\n*   Try not to worry. Use relaxation techniques.\n*   Don't feel guilty — the credit card companies share some of the responsibility.\n*   Don't do anything hasty and sign up with a debt consolidation firm without doing some research.\n*   Consider handling debt settlement on your own.\n*   Don't rush into bankruptcy without considering all the alternatives. END
 TITLE: What If You Don't Qualify for Bankruptcy CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: October 2, 2017_\nWe respond to questions on our discussion forum from people who are $75,000, $100,000, or more in debt. Due to the changes in bankruptcy law in 2005, many people who could have filed for Chapter 7 bankruptcy in the old days are now out of luck. They don't qualify for CH 7 bankruptcy because they can't pass the bankruptcy Means Test. If you have found yourself in this situation, we have some ideas for you that just might help you settle and\/or pay off your debts.\nUse Equity in Your Home to Pay Off Debts\n----------------------------------------\nCan you refinance your home and pull cash out to pay off your credit cards? This assumes good credit and enough equity to make the refinance worthwhile to you and your family. If the answer is no, then go to our next tips. If the answer is yes, then contact your lender to see if you can refinance your home to pay off your debts.\nUse Saved Cash to Settle Your Debts\n-----------------------------------\nYou would be amazed how many people do have some cash to settle their debts, but want to hang on to it instead of paying off credit cards. This is a mistake as the interest on your credit cards can be as much as 30 percent. You should run the numbers to see if it makes sense.\nLet's say the numbers are overwhelmingly in favor of paying off cards versus keeping money in a savings account. There may be another reason to hold off spending your cash: emergency reserves. If you don't want to use your cash because you want it as an emergency fund, this might be a good idea. If you're unemployed or your employment situation is shaky, having reserve cash can get you through some tough times.\nHere are a few questions you should be asking yourself:\n*   Your savings accounts are paying what interest rate per month?\n*   What is the interest on your credit cards? How much in finance charges are you paying per month?\n*   Do you feel more secure having a little cash saved?\nIf the answer is no, you don't have cash, or no, you don't want to use it, then go to the next tip. If the answer is yes, you have cash and want to use it, then you may be able to settle your debts with the credit card companies. Read our article on How to Negotiate Your Debt With the Original Creditor to learn how to negotiate and settle your debts for a fraction of the amount owed.\nUtilize a 401K or a Retirement Fund\n-----------------------------------\nAccessing your 401K or retirement funds is sometimes a route people may want to take. You must be careful about this, though, especially if you are near retirement age. Taking out money from 401K or investment mutual funds makes the temporary (we hope) loss in your portfolio permanent. Why is this? If you hold on to your mutual funds portfolio, they have a chance to recover. If you withdraw money now, you are essentially selling at the low point of your mutual funds. Here are other things to consider when pulling funds out of your 401K or IRA.\n**If you cannot do any of the above, you have no choice but to......**\n### Stop Making Credit Card Payments\nThis might sounds ridiculous, but really, what other option do you have? You are really backed into a corner here. Stopping the payments to your creditors is what happens when you file for bankruptcy, so you are creating your own bankruptcy status. If you create your own \"bankruptcy\" by not paying your cards, you are doing so without the hassle of the court system, but also without the protection of the court system.\nLet's say you did qualify for a bankruptcy - what are the advantages and disadvantages to filing a BK Chapter 7?\n**Filing Bankruptcy Chapter 7**\n*   You don't have to make payments on your credit cards.\n*   All of your debts are wiped out, your creditors will not be contacting you.\n*   Your credit is ruined for 10 years, you will have a tough time getting an unsecured credit card, and it's tough to get a bankruptcy off your credit report.\n**By Not Paying Your Credit Cards**\n*   You don't have to make payments on your credit cards.\n*   All of your debts are not wiped out and your creditors will start hounding you.\n*   Your credit is ruined for seven years. Late payments and any corresponding collections only stay on for 7 years from the date of first delinquency. You will have a tough time getting any credit for a while.\n*   It's possible to fix your credit before the 7 year reporting time is up.\n### Not Paying Your Debts vs. Filing Bankruptcy\nYour strategy should be:\n1.  Stop paying your bills.\n2.  Put aside the money you were paying the credit card companies into a separate saving account. This will be used for possible settlement with collection agencies later.\n3.  Save all correspondence from credit card companies and collection agencies.\n4.  Don't answer the phone unless you want to talk to the credit card companies or collection agencies. Talking to them is not recommended.\n5.  Once you get a letter from a collection agency, send them a debt validation letter IMMEDIATELY.\n6.  Once you have enough money saved, you should attempt to settle your debts with the collection agency. You can settle for 10 to 25 percent on the dollar.\n### If You Stop Making Payments on Your Credit Cards, What Happens?\nTime From Last Payment\nAction Taken Against You\nWho is Holding Debt\n0-30 days late\nNothing\nCredit Card Company\n30-60 days late\nPhone call from credit card company or letter reminding you to pay.\nCredit Card Company\n60-90 days late\nIncreasingly urgent phone calls from credit card company or letters reminding you to pay.\nCredit Card Company\n90-120 days late\nIncreasingly urgent phone calls from credit card company or letters reminding you to pay. Possible settlement offer letters.\nCredit Card Company\n120-150 days late\nPhone calls and letters, possible settlement offers, possible charge off.\nCredit Card Company\n150-180 days late\nPhone calls and letters, possible settlement offers, possible charge off.\nCredit Card Company\n180+ days late\nCharge Off\nNo One\n6-8 months late\nSold\/Assigned to Junk Debt Buyer or Collection Agency\nJDB\/CA\n8-12 months late\nFirst contact made by CA\/JDB, either by phone, letter or mark on credit report. Possible lawsuit.\nJDB\/CA\n12 months until Statute of Limitation expires\nletters, calls, possible lawsuit\nJDB\/CA\n### Frequently Asked Questions\n**Q.** Do credit card companies sue you?  \n**A.** No. First of all, let me define a credit card company as any financial institution that issues a credit card, which could include your independent small bank or a credit union. Credit card companies either sell or assign bad debts to collection agencies or junk debt buyers. Credit card companies write off the bad debt and take the tax benefit.\nIt is a collection agency or junk debt buyer that could sue you. In some cases, the collection agency or junk debt buyer will name the credit card company as the plaintiff in the lawsuit, which is not quite legal, but gives them advantages.\n**Q.** Do you know which collection agency will get your account once it is charged off?  \n**A.** No. It is impossible to guess which collection agency will get your account after it is charged off. Bad debt paper is sold on the junk debt market to the highest bidder. In some cases, your credit card account will NEVER be sold or assigned to a collection agency.\n**Q.** Do collection agencies ALWAYS sue?  \n**A.** No. In some cases, even if a collection agency is known for filing a large amount of lawsuits, they may not sue you. It is impossible to predict whether or not a collection agency will sue you.\n**Q.** Can a collection agency or credit card company seize my house, garnish my wages or get into my bank accounts?  \n**A.** No one can ever seize your home - most states have homestead exemptions protecting your home from creditors. Since credit card companies do not sue - your credit card company would never seize your assets.\nIf a collection agency sues you, you can beat them in court. If they do win a judgment against you (another big if), yes, they can garnish wages and get into your checking account.\n**Q.** When am I \"safe\" from lawsuits or when can I stop worrying about my debts?  \n**A.** You will be \"safe\" from lawsuits when the statute of limitations on your debt is up or you settle with the collection agency. END
 TITLE: Who is at Fault for Your Personal Debt CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 6, 2017_\nEvery day we hear about how the cost of higher education is soaring, car prices increase each year, the value of our dollar is shrinking, so it is no wonder no one can save any money. Not being able to save money, and higher cost of goods and services, leads one right down the path of overwhelming debt. Is it really your fault you have a mound of personal debt and no savings to speak of? Not entirely. Now we are not saying you can blame all your debt on someone or something else, you do have to take responsibility for your spending and saving actions. But what we are going to point out, is the fact there are some circumstances beyond your control that are driving you and thousands of other Americans, down the road of crippling debt and ultimately into bankruptcy.\nDifficulty Saving Money\n-----------------------\nIf you are lucky enough to have a job, how discouraging is it when you have deposited your paycheck into your savings or checking account, only to see a near zero balance by the end of a week or two. A student loan payment, cell phone, rent, car payment, these are all just a few of the monthly expenses the normal person has to pay with their measly paycheck. After all of these expenses are paid, it does not leave much in the bank to even try to put aside the recommended 10 percent into a retirement account. Why is it so hard to save money these days when your parents or grandparents were able to put aside money?\nCompounded interest, that is the missing ingredient in today's banking environment. With the Federal Reserve's zero interest rate policy, this causes decreased savings and the ability to grow your savings. Even if you saved the same amount each month as say your grandparents did, without compounded interest, the money in your savings account is not growing as it did back then. Your grandparents were earning interest on their money, you are not.\nBorrowing Money is Cheap\n------------------------\nOn the flip side of saving money is the aspect of borrowing money. Today, the Federal Reserve has made borrowing money extraordinarily cheap by any historical comparison. When the cost of borrowing money is too low, it becomes too irresistible and lures people into debt. For example, that annual tuition to Yale of $63,000 doesn't seem so bad when your monthly payment is only $650 and deferred until after you graduate. Sounds great now, but when you can't find a job because the economy is faltering and the dollar does not buy as much as it used to, that $650 seems like a heavy burden in the real world.\nAlso, when credit is too cheap, people buy what they want even if they really don't need it. This pushes price points up on goods and services making things more expensive. More expensive purchases equates to borrowing money, which brings us to overwhelming debt. It is a vicious cycle and one that is hard not to get caught up in.\nWho is To Blame For Your Personal Debt?\n---------------------------------------\nIf you asked your parents or grandparents this question, they would probably say your debt is your own fault and yours alone. They may also try to offer you advice or make you feel guilty, which is not really helpful nor does it really address the underlying issue of why more and more young adults are finding themselves in debt up to their eyeballs, so to speak. Can young adults really control the cost of a college education or how much a car will cost or what AT&T is going to charge for cell phone service? Not really. With the Federal Reserve's zero interest policy, the low cost of borrowing money, and the false sense of security of our dollar, there is not much young adults or any person can do about the growing personal debt in America. Until we start to back our currency with gold and get out from under the control of the central bank of the Federal Reserve, there is not much we can do but ride the tide of growing debt until we eventually fall off the cliff. END
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 TITLE: Use a Personal Loan to Pay Off Your Debts CONTENT: Using a Personal Loan to Pay Off Debt Is a Great Idea\n-----------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 16, 2017_\nWe have a lot of articles on our site offering advice on how to pay off your debts and become debt-free. We know that finding yourself over your head in debt eventually leads you down the road of missed payments, repossessions, and foreclosures — not to mention the endless phone calls and letters from collection agencies. The three basic steps to paying off your debts are to stop accumulating more debt, pay off high interest loans first, and put as much money as you can toward paying down your outstanding balances. \nGetting out of debt, particularly consumer debt, is the cornerstone of financial freedom. It frees up cash for saving and investing. It enables us to get off the treadmill of living month-to-month. And being debt-free just feels great and we have a great way to help you pay off your debt — personal loans.\nTips When Using a Personal Loan to Pay Off Debt\n-----------------------------------------------\nUsing a personal loan as a debt payoff tool is often overlooked and it may seem odd to use new debt to get out of old debt. OK, yes, there are some risks to this approach, but if used correctly personal loans can lower your interest payments and shorten the time it takes to become debt-free. Here are some tips when considering using a personal loan to pay off your outstanding debt.\n**1) Check the Interest Rate.** Refinancing your debt at a lower interest rate is like hitting the lottery. A lower interest rate reduces the amount of interest paid and, assuming the term of the loan is the same, also reduces the monthly minimum payment. Refinancing existing debt with a lower-rate personal loan is a smart way to accelerate debt repayment. If you are able, try consolidating all of your high interest rate debt into one lump sum loan at a lower interest rate - this not only lessens the amount you will be paying in interest but it gives you just one payment to make each month. And, having one monthly payment can help when planning your budget and it prevents payments from being forgotten or missed.\n**2) Check the Term of the Loan.** Care and planning must be taken to make sure the term of a personal loan is consistent with your budget and financial goals. If a personal loan has a shorter term than the existing debt, your monthly payments may be more than your budget and\/or income can support. On the flip side, extending the term of a loan can result in more interest paid over time. Both of these factors need to be carefully considered when you are thinking about taking out a personal loan to pay off existing debt. \n**3) Does the Loan Need Collateral.** Typically, personal loans are a type of unsecured debt. However, there are some instances where lower interest rates can be obtained through secured loans, such as a home equity line of credit. While this is a reasonable option in some cases, it’s important to understand that failure to pay a home equity line of credit could result in the foreclosure of your home.\n**4) Weigh the Benefits of Consolidation.** We touched on briefly the notion of consolidating your debts but the key to using personal loans as a tool to getting out of debt is achieving lower interest rates (as noted above). While this can include consolidating multiple debts into a single new loan, consolidation by itself is not beneficial. It may reduce the number of monthly payments that must be made, but if the new loan comes with a higher interest rate, the added convenience may not be worth the cost. So, if you are thinking about combining all of your debts, make sure the interest rate of the personal loan is lower than the rate of all of your other debts.\nBottom line, if you are looking for a way to pay off your debts, consider using a personal loan. But before you apply for a personal loan, it helps if you know where you stand, credit-wise, so you can look for the best rates within your credit range. Just like getting a credit card, when it comes to getting a personal loan, having a higher credit score will get you access to lower interest rates. Make sure you shop around for the best rate because if you are not lowering your overall interest rate, there is no point in going down this road in the first place. END
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 TITLE: Mistakes Made When Filing Ch 7 or CH 13 Bankruptcy CONTENT: Common Mistakes and Errors Made When Filing Bankruptcy\n------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 2, 2017_\nBankruptcy does happen to good people — so don't beat yourself up if you are thinking about filing Chapter 7 or Chapter 13 bankruptcy. Bankruptcy was designed to help those facing insurmountable debt and financial hardship, get a fresh start and eliminate most if not all of their debt. You should never enter into filing bankruptcy lightly and hopefully you have extinguished all other options first.\nBefore you file bankruptcy, make sure to get competent advice from a competent bankruptcy attorney. If you cannot afford to hire an attorney, do your homework first and make sure you know all the ins and outs of filing bankruptcy. Below are a few of the common mistakes people make when they are filing bankruptcy. As you can see from reading them, one little misstep could lead to your bankruptcy being dismissed. So, make sure you dot all of you i's and cross all of your t's and you will come out of bankruptcy with a clean slate.\nNot Telling the Truth\n---------------------\nThe first step in the bankruptcy process is taking the means test, which is a series of financial questions used to determine if you have the capacity to pay your creditors. The majority of people who file for bankruptcy will qualify but those who don't, generally will have other options available to them. By leaving out assets or income on your means test just so you qualify, could result in getting your case dismissed down the road. Even worse, lying and being caught lying could get you banned from filing on those particular debts ever again.\nOmitting a Source of Income\n---------------------------\nYou might think that part-time job does not really count as income but in fact it does in eyes of the bankruptcy court. What you might think is an insignificant means of income, is still plain and simple — income — so you need to report it.\nAnd this goes for ALL household income. If you have a child, who still lives with you and you claim him or her as a dependent in your bankruptcy, and this child has a part-time job, you have to include his\/her income. Failure to do so will result in getting your case dismissed.\nLeaving Out Cars or Car Loans\n-----------------------------\nWhen you think of bankruptcy, the first thing that may come to mind is, \"I don't want to lose my car.\" If you have a car with a loan on it, you must list it as one of your liabilities. And, if you own it outright, you have to list it as an asset in your bankruptcy paperwork. Failure to do so, or transferring it to another family member right before you file for bankruptcy, is a sure fire way to lose your car.\nWhen it comes to the loan on your car, you have to notify the lender you have filed for bankruptcy. Usually, the lender will work some type of agreement with you so you can keep the car.\nLeaving Out Some Creditors\n--------------------------\nFace it, you can't hide from your creditors so don't leave any of them off of your bankruptcy filing. With everything now computerized, most credit card companies have centralized their information so they will know if you have filed for bankruptcy protection. It is better just to come clean and list them all than to try to hide one and get caught. Leaving out creditors may get your case dismissed.\nTransferring Assets Out of Your Name Prior to Filing Bankruptcy\n---------------------------------------------------------------\nThis is a big no-no and it is illegal. Transferring any assets for the purpose of protecting them from being taken is not the right way to go about protecting them. Talk to your bankruptcy attorney about how to legally protect assets that might otherwise be at risk.\nFailing to List all Potential or Pending Lawsuits You Have Against Anyone\n-------------------------------------------------------------------------\nThis is an area that is frequently overlooked by people filing for bankruptcy. If you are in the process of suing anyone for anything, that is considered an asset and must be listed as such in your bankruptcy paperwork. You may be able to continue with these cases, but the court-appointed bankruptcy trustee must know about any and all lawsuits or potential lawsuits.\nRunning Up Credit Card Balances Before Filing Bankruptcy\n--------------------------------------------------------\nMany potential filers say that they are going to use up all their available credit before filing for bankruptcy. This usually does not work for the filer. The creditor will review your credit card charges after receiving the bankruptcy notification. If the creditor believes you ran up your credit card balances before filing, it has the right to challenge your request to eliminate some or all of your balance. You could end up owing money on your credit cards after your bankruptcy is over.\nBankruptcy does not have to be a difficult procedure. As long as you adhere to the laws and regulations, your bankruptcy will go smoothly and quickly. We always recommend you talk to an attorney before filing bankruptcy. You need to understand all of your options and alternatives to bankruptcy before you file. END
 TITLE: What if You Can't Afford to File Bankruptcy? CONTENT: What if You Can't Afford a Bankruptcy Attorney or the Fees?\n-----------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 3, 2017_\nIt is not uncommon for people who have been struggling for years to make minimum payments on their debts to suddenly find out they are too broke to pay a lawyer or pay the bankruptcy filing fees. As a result, people filing bankruptcy without the help of an attorney rose from 6 percent of Chapter 7 and Chapter 13 filings in 2015 to 8 percent of Chapter 7 filings and 10 percent of Chapter 13 filings in 2016. Some might think that is because people do not like lawyers but we tend to think this is a way for people to try to save what little money they have left.\nThe bankruptcy filing fees effective January 1, 2017 are as follows:\n*   Chapter 7 — $335\n*   Chapter 13 — $310\nThe most common type of bankruptcy, a Chapter 7 filing, erases most consumer debts and typically costs anywhere between $1,500 to $3,000 with an attorney. Chapter 13 filing, which involves a debt repayment or reorganization plan, can cost from $3,000 to $4,000 with an attorney.\nAfter the passing of the 2005 Bankruptcy Reform Act, costs for both types of bankruptcy filings rose considerably. This increase in cost was due to the imposed Means Test and other limitations on filing, which was a direct result of the 2005 Bankruptcy Reform Act.\nShould You Use an Attorney to File Bankruptcy?\n----------------------------------------------\nNow that you have finally made the decision to file bankruptcy, can you afford an attorney? If you can't, does it really matter if you don't use one? Well, like anything, having some expertise in something goes a long way in getting a project done correctly. A poorly filed bankruptcy can be dismissed, which means you will not get any relief from your creditors. On top of that, filing your bankruptcy incorrectly could leave some of your property and assets unprotected which could lead to you losing a lot of things you could have kept after the bankruptcy is finalized.\nIf you can somehow scrape the money together, it is always a good idea to seek expert advise. But before you go out and hire any Tom, Dick, or Harry Esquire, read our article on the 50 Questions to Ask When Looking for a Bankruptcy Attorney. This way, the little money you do have to pay an attorney, will not be wasted on some incompetent fly-by-night attorney who will do nothing for you except get you further into debt.\nAlternative Options to Use\n--------------------------\nBefore you start bankruptcy proceedings on your own, here are a few things to consider that will go a long way in saving your assets and some money.\n1.  **Figure Out If You Are Judgment-Proof.**  If you are judgment-proof, you may not need to file bankruptcy and you can just send your creditors a letter telling them to stop contacting you. You are judgment-proof if:\n    *   Your income and property are legally protected from creditors.\n    *   You own very little and have no income.\n    *   All of your income is from Social Security - Social Security payments are legally protected.\n    *   The list of property you own is only clothing, household items, and a car worth $2,000 or less.There is a hitch in being judgment-proof. If your creditors go to the trouble to sue you and get a court judgment, they may be able to collect from you if your circumstances improve in the next 10 years. A bankruptcy filing, by contrast, would legally erase the debt.\n2.  **Think of Ways to Raise the Money Needed.**  Your bank account might be empty, but there are some ways you can quickly raise the money you need to file bankruptcy and hire an attorney.\n    *   Cancel some luxuries such as cable TV, cell phone, or eating out. This will free up some money instantly.\n    *   Sell some items you are likely to lose in a bankruptcy, like a second car, expensive artwork, or jewelry, on eBay or Craigslist.\n    *   Stop making payments on debts you are hoping to erase in the bankruptcy - what's the point of paying on these if they are going to be discharged in your bankruptcy.\n    *   Get a loan from a friend or family member. The loan would be legally wiped out in the bankruptcy filing, but that wouldn't prevent you from repaying them later.\n3.  **Look For Low-Cost Bankruptcy Help.**  Many bankruptcy attorneys offer discounted initial sessions. Use this session to explore whether or not filing bankruptcy is going to be right for you and what you will need to do to proceed with a bankruptcy filing.\n    If your income is below the poverty level (currently $18,530 for a family of three), you may be eligible to receive free help from your local legal-aid society. There are also a few bankruptcy courts that have \"pro se help desks\" (pro se means filing without an attorney) so contact your local court and ask if they are offering this type of service.\nGiven how complicated today's bankruptcy procedures are, you should at least read as much as you can before you decide to file bankruptcy. Our website is loaded with information on Chapter 7 and Chapter 13 filings and the most popular questions asked regarding filing either one. We also have a Bankruptcy Forum where you can read questions and answers from other members and you can ask your questions for free. Doing you homework before jumping into filing bankruptcy will give you a much better chance for a successful filing and a brand new start . END
 TITLE: What if You Can't Afford to File Bankruptcy? CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
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 TITLE: Voluntary and Involuntary Bankruptcy Dismissal CONTENT: Dismissal of Your Bankruptcy Petition — Voluntary or Involuntary\n----------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 3, 2017_\nA bankruptcy petition can be either **discharged** or **dismissed** after it has been filed. Should your bankruptcy be discharged, this means that you have met the terms of your agreement, and your bankruptcy has been completed. A dismissal, however, occurs when the petitioner does not meet the terms of the bankruptcy. Bankruptcy dismissal may be either voluntary or involuntary.\nVoluntary Dismissals\n--------------------\nA voluntary dismissal occurs when an individual decides that filing for bankruptcy was a mistake. You may wish to request a voluntary dismissal if the court informs you that the primary debt you wished to discharge is not dischargeable or you find employment that will permit you to successfully pay off your debts without the aid of the bankruptcy court.\nIf your bankruptcy case was filed under Chapter 13, you may secure a voluntary dismissal merely by filing a formal request for dismissal with the court. Should you choose to stop making payments to the bankruptcy trustee, this will also result in your Chapter 13 bankruptcy being dismissed.\nUnfortunately, if you file under Chapter 7 of the U.S. Bankruptcy Code you may not have the same freedom to be granted a dismissal at any time. Once a Chapter 7 case is filed, it is up to the judge in the case as to whether or not to grant you a voluntary dismissal.\nInvoluntary Dismissals\n----------------------\nAn involuntary bankruptcy dismissal occurs if you fail to meet the requirements of the court. This can be as simple as neglecting to file paperwork with the bankruptcy court or pay a fee. Your bankruptcy may also be dismissed if you fail to seek government approved credit counseling or have neglected to file any of your tax returns over the previous four years.\nWhen you stop making payments to the bankruptcy trustee on your Chapter 13 bankruptcy repayment plan, the court will issue an involuntary dismissal. Your decision to stop making payments, however, is a voluntary one.\nReinstating Your Dismissed Bankruptcy\n-------------------------------------\nIf your bankruptcy was involuntarily dismissed, you may have the option to have the bankruptcy reinstated. When working to get your case reinstated, it is vital that you move quickly. Depending on your state of residence, you will have a very limited amount of time in which to plead your case before the dismissal becomes permanent.\nYour first step should be to find out why the bankruptcy was dismissed. If the reason is not present on the formal notice of dismissal you were sent by the court, visit the courthouse and inquire about the reason the bankruptcy was dismissed. In the majority of cases, a bankruptcy is dismissed due to a simple oversight on the part of the debtor or his attorney. This is known as an administrative dismissal. To combat an administrative dismissal, you or your attorney must file a Motion to Reconsider with the bankruptcy court. You must also provide the court with any missing paperwork or fees.\nIf your bankruptcy dismissal occurs due to information provided by your creditors, you may have a more difficult time having your bankruptcy case reinstated. At this point, you will be required to present new evidence to the court formally contesting your creditors' statements. Should the bankruptcy court decide in your creditors' favor, you have the option to file an appeal and request a hearing on the case. Unless you are positive that you no longer wish to pursue a bankruptcy, it is important that you adhere to all of the requirements of the bankruptcy court to prevent your bankruptcy from being dismissed. Once your bankruptcy is no longer in effect, you will lose the court's protection from creditor lawsuits, foreclosure, and repossession.\nFiling a Second Bankruptcy After Dismissal\n------------------------------------------\nIf you are unable to have your bankruptcy reinstated or change your mind after requesting a voluntary dismissal, you have the right to file for bankruptcy again. Federal restrictions state that you must wait 180 days after your bankruptcy dismissal before attempting to file for bankruptcy a second time. It is irrelevant whether your initial bankruptcy was filed under Chapter 7 or Chapter 13, if it was dismissed prior to being discharged.\nYou must remember that a bankruptcy is recorded on your credit report as soon as it is filed with the court. The bankruptcy filing then may appear on your credit report for the full duration of the federal reporting period even if it was dismissed. Filing a second bankruptcy will result in yet another bankruptcy record being placed on your credit report and your credit score will drop by a significant amount. END
 TITLE: How to Handle Debts Before and During a Divorce CONTENT: How to Handle Jointly Held Debt During a Divorce\n------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 13, 2017_\nUnless you were still in the dating stage, chances are you and your ex share in some debt. While it's no easy feat discussing financial matters before, during, or even after a break-up, it simply must be done — for the sake of your sanity, your bank account, and your credit score. It may help to have a third-party's advice in this trying time, in which case you may want to refer to this checklist, of sorts.\nTransfer Lease Agreements\n-------------------------\nOne of the first steps in taking care of outstanding debts and obligations is to transfer lease agreements, utilities, and the like into one responsible party's name. If one of you will continue to live in your previously shared home, take the other party's name off of the lease agreement and transfer the utilities accordingly.\nRevoke Authorized User On Credit Card Accounts\n----------------------------------------------\nIf you added your spouse or partner as an authorized user on your credit card, or checking account for that matter, contact the bank and have the authorization revoked immediately.\nClose Joint Credit Card Accounts\n--------------------------------\nProvided they are at a zero balance, close joint credit card accounts. Should you have a balance due, both parties should share in paying it down to zero so that the account can be closed.\nFreeze Joint Credit Card Accounts if You Cannot Close\n-----------------------------------------------------\nIf the balance due is greater than both parties can afford to pay, at the very least, freeze the account so that nothing more can be charged.\nAgree to a Payment Plan for Joint Accounts With a Balance Due\n-------------------------------------------------------------\nWhile you may agree to make payments on one credit card, and your ex agrees to make payments on another, you are still at the mercy of someone else. That's never a good feeling, particularly when it's an ex. One solution may be for both of you to make equal monthly payments on each joint account. This amount should be at least the minimum amount due, for each of you, so that if your ex ever misses or is late with their monthly payment, yours will prevent any late payment fee and, worse, hit to your credit score.\nKeep Tabs on Payments Your Ex is Responsible For on Unresolved Joint Accounts\n-----------------------------------------------------------------------------\nWhatever payment arrangements you make on joint accounts that cannot be closed, agree that each of you can (and should) check in on your jointly-held accounts on a monthly basis to be sure the other is upholding their part of the deal. Ideally, this is something that can be checked via an online account, or you can simply call the creditor directly and check payment history. While this may sound like the last thing you need on top of all your other responsibilities, protecting your credit is well-worth this extra effort.\nSell House and\/or Car or Refinance Into One Party's Name\n--------------------------------------------------------\nIf you own a home together, or a car, the simplest solution is selling it. But if one of you is intent on keeping it, said party should refinance in their name. Of course, this is often easier said than done depending on the borrower's credit score. The borrower should take a look at their credit report and see how they may be able to raise their score. It may be the credit utilization ratio bringing the score down, in which case credit accounts should be brought to zero (or as low as possible). Or it may be old debt that's to blame, in which case the debt validation process can be invaluable, as it's likely this debt has been sold to collection companies that do not have the necessary documents to prove liability.\nHelp Pay Your Ex's Share of the Debt, if Needed\n-----------------------------------------------\nIt may not be equal, and it may not be fair, but sometimes it pays to take on your ex's share of the debt if they're struggling, irresponsible or, worse, vindictive. You very well could end up paying more in the long run for a credit score that takes a tumble due to late payments, missed payments, defaults, charge-offs, a repossession, or a foreclosure. Certainly seek legal advice if it comes to this, but be prepared to bite the bullet and protect your credit at (almost) any cost.\nGoing through a divorce is never easy and it can be difficult to face some tough decisions head on. But, if you don't take care of some of the little things during a divorce, like closing credit card accounts, they can turn into much larger problems down the road. The best advise is to be pro-active and try to work together to end the marriage, and your joint debt, in a civilized manner — all will win in the end. END
 TITLE: Overwhelming Debt for Newly Married Couples CONTENT: Debt Can Be a Problem for Newlyweds\n-----------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 18, 2017_\nWhen you walked down the aisle with your significant other to finally tie the knot you heard the preacher say, \"for richer or for poorer,\" and did not even think twice about that statement. Fast forward a few months and now that phrase has taken on a whole new meaning. Student loans and credit card debt now seem a far bigger issue now that two people are contributing to the bottom line amount of what is owed and what needs to be paid on every month.\nToday, as many Americans struggle with massive debt, younger adults are in even worse shape when you figure in the ten of thousands of dollars owed in schools loans, auto loans and credit card balances. What in the world can these poor newlyweds do about this compounding problem?\nBe Honest With Your Spouse About Your Debt\n------------------------------------------\nDuring your courtship, who had the time or the desire to talk about finances let alone how much money you owed in loans or credit card debt. Well, now is the time to start being honest with your spouse. Both of you need to lay it all out on the table, so to speak, and divulge to the other just exactly how deep you are in debt. Make a list of all your creditors and the balances due to date. Next, itemize out the minimum monthly payments due on each loan and when each payment is due.\nHaving this heart-to-heart discussion will not only get everything out in the open, it will alleviate any misunderstandings down the road. For say, when you are trying to buy a house and the lender pulls your credit only to find a bunch of outstanding loans and then denies your loan.\nWork Together to Form a Payment Plan to Get Out of Debt\n-------------------------------------------------------\nAfter the two of you had your heart-to-heart talk about how much debt each of you have, now is the time to work out a payment plan to pay down your debts. Eventually, you will want to buy a house and to qualify for a decent mortgage loan rate, you have to have pretty good credit. Making sure your payments are up to date and your credit card balances are low, are the biggest factors when evaluating your credit scores.\nThe best way to tackle this is to list out all the outstanding balances with the minimum payments due on each. Add them all up. Now, figure out what you take home each month in combined salaries and subtract the total payments from your net income. Do you have enough left over for rent? Food? Gas? If so, then start paying down your loans. If not, look into possibly consolidating a few of the debts or negotiating a settlement with your creditors. See our article on Settling Your Debts for more information.\nNow that you have all the debt payments figured out, put one of you in charge of making the payments every month. This way, one person is in charge of paying on all the loans so that nothing will be overlooked. This person should also try to pay a little bit extra on some of the debts each month, if you can. This will save you money in interest payments and pay a few of the debts off quicker. Every six months or so, sit back down together and review the balances to see if anything needs to be readjusted. You will see that in no time, debts will start to be paid in full freeing up a little bit more money to pay on something else.\nOrder Copies of Your Credit Reports\n-----------------------------------\nAfter you get married, it is a good idea for both of you to order copies of your credit reports and check them over closely. This will help to identify any negative items that may be dragging down your credit scores. You may want to work with a credit repair company to fix your credit or you can do it yourself. Either way, if you do have inaccurate or negative marks on your credit, now is the time to work to get them off and get your credit back on track.\nDetermine Your Future Financial Goals\n-------------------------------------\nProbably one of the most important things you can do as a couple is to write out your future financial goals. To make it easy, break your goals up into increments of say two years. When you write out your goals, make sure to be as specific as possible. For example, your first goal could be in one year and then the next goal could be two years later.\nYour first year's goal could be to cut down your debt by 50 percent and your goal for two years later could be to purchase your first home. Then, in a year, when you sit down with your spouse to review your goals, you will need to evaluate if you achieved your goals. If you didn't, talk about what you can change to make those goals a reality.\nYou will always need to adjust your goals — which is fine — but you always want to have some goals so you know where you are headed financially.\nThe most important thing you, as a young newlywed, can do is to make sure you are honest with your partner about the financial realities you face, and to formulate the best possible plan to deal with your debts together. Working together to pay down your debts will help to realize a better financial future for both of you. END
 TITLE: Bankruptcy Fraud is Rarely Caught and Prosecuted CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: October 3, 2017_\nBankruptcy fraud is a white-collar crime and there are four distinct methods of committing bankruptcy fraud:\n1.  Concealment of assets\n2.  Intentionally filing incomplete or false forms\n3.  Filing multiple times using false or real information in several states\n4.  Bribing a court-appointed Trustee\nIn the United States, bankruptcy fraud is a federal crime punishable by a fine of up to $250,000 and\/or up to five years in prison. But even with these harsh consequences, bankruptcy fraud is not frequently prosecuted. Let's find out more about the different types of fraud and then why the majority of people get away with it.\nBankruptcy Criminal Referrals Submitted\n---------------------------------------\nAccording to the United States Courts, bankruptcy cases filed in federal courts for fiscal year 2016 (12-month period ending June 30, 2016) totaled 819,159, down 6.9 percent from fiscal year 2015, which saw 879,736 bankruptcy filings. (all-time high was 2010 with over 1.6 million bankruptcy filings)\nAccording to a report by the U.S. Department of Justice, in fiscal year 2016, the United States Trustee Program (USTP) filed 2,158 bankruptcy and bankruptcy-related criminal referrals, a 1.3 percent increase over the 2,131 criminal referrals made during fiscal year 2015. The five most common allegations contained the following:\n1.  Tax fraud\n2.  False oath or statement\n3.  Concealment of assets\n4.  Bankruptcy fraud scheme\n5.  Identity theft or use of false\/multiple Social Security Numbers\nOutcomes of Criminal Referrals\n------------------------------\nOut of the 2,158 criminal referrals made in fiscal year 2016, 887 referrals remained under investigation or review, 16 referrals resulted in formal charges, 723 referrals were declined for prosecution, and three were administratively closed.\nIs Bankruptcy Fraud on the Rise?\n--------------------------------\nThe United States Department of Justice estimates that one in every ten bankruptcy filings has an element of fraud associated with it and 25 percent of cases were found to contain \"material misstatements of income or expenditures.\" The USTP does not publicly disclose what specifically constitutes a material misstatement but the term may refer to an understatement or omission of a debtor's assets or income.\nAccording to an article in The Wall Street Journal, the arm of the Justice Department that monitors corporate and consumer bankruptcy filings has \"indefinitely suspended\" audit proceedings due to budget cuts. According to Mr. Talbot, a senior VP for the Financial Services Roundtable, \"The audits are designed to catch and prevent abuse. The absence of the audits could lead to more instances of abuse of the Bankruptcy Code.\"\nReasons for Bankruptcy Fraud\n----------------------------\n**Criteria For Asset Detection Absent.**  The agency claims, \"detecting and combating bankruptcy fraud is a U.S. Trustee Program priority.\" The trustees appointed by the Justice Department to oversee almost every bankruptcy filed in the U.S. are not required by law or regulation to have any expertise in tracing or recovering concealed or stolen assets. Indeed, criteria that individuals seeking appointment as a U.S. Trustee are required to meet contain no mention of the sort of asset tracing and recovery skills that would enable a trustee to detect the signs of fraud.\n**Professional Qualifications.**  According to the Code of Federal Regulations, there are relatively few professional qualifications required for appointment to the panel of trustees charged with overseeing filings under Chapter 7 of the bankruptcy law or to appointment as a standing trustee. Attorneys admitted to practice before the highest court of a state or the District of Columbia are eligible, as are Certified Public Accountants.\nHowever, those without such professional qualifications can still be eligible for appointment if they graduated from a four-year college and earned at least 20 credit hours of \"business-related courses.\"\nWhat Experts Say About Bankruptcy Fraud\n---------------------------------------\n\"The numbers don't surprise me terribly,\" the article quotes James W. Boyd, a Traverse City, Michigan attorney, currently president of the National Association of Bankruptcy Trustees.\n\"I think the USTP system is very aggressive in its pursuit of these matters, and I think most trustees are quite aggressive when they see what they believe is an intentional fraud committed on the system by the debtor, they are referring them to USTP,\" he said.\nHowever, Mr. Boyd stated that asset \"mistakes\" or \"mis-statements\" about assets have to be viewed in context. Many personal bankruptcies involve individuals with little education in legal matters and little ability to hire experienced counsel. (Bankruptcy trustees are barred from providing advice to filers.)\nReally?  People don't know that they should report that they have three cars?  Report they own lots of gold jewelry, boats or stocks?  What about their bankruptcy attorneys? The trustees may not be able to advise filers but don't the attorneys explain to their clients what has to be included as assets?\nIf you are hiding assets from trustees during your Chapter 7 bankruptcy proceedings, you have a one in one thousand shot in not being detected in the current system of trustees. We are not sure how much press this has gotten or if the public cares. \nStatistical Data — Bankruptcy Fraud\n-----------------------------------\n**FY 2016**\n**FY 2015**\n**FY 2014**\nInvestigations Initiated\n29\n28\n44\nProsecution Recommendations\n19\n29\n25\nIndictments\/Informations\n17\n24\n12\nSentenced\n18\n11\n8\nIncarceration Rate\n61.1%\n63.6%\n75.0%\nAvg. Months to Serve\n17\n16\n53\n_For an in depth look at bankruptcy prosecution, read the white paper by Emory Law._\n* * * END
 TITLE: Rebuild Your Life After Filing For Bankruptcy CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: October 3, 2017_\nIf you are reading this article, chances are you took the plunge and filed for bankruptcy. Hopefully, this decision was made with a lot of thought and advice from a competent financial and legal professional. Rebuilding you life after bankruptcy, including your credit rating, finances and your emotional well-being, can sometimes feel like an overwhelming task. But it needs to be seen as the first step toward a more financially sound future. Don't feel like it is the end of the world, take the view you will be better off down the road and there is indeed life after bankruptcy.\nTypes of Bankruptcy Protection\n------------------------------\nJust to get everyone up to speed, there are two types of bankruptcy protection, Chapter 7 and Chapter 13.\nChapter 7 Bankruptcy is the most widely used and it for those who have few assets and no ability to work out a repayment plan with their creditors. These people turn over their assets to repay their debts and whatever cannot be repaid is wiped clean. The debtor comes out of this bankruptcy fairly quickly and debt free.\nChapter 13 Bankruptcy is for those individuals who have a lot of assets, such as cars, homes, stocks, and want to keep the majority of their assets. They are willing and able to work out a payment plan with their creditors because they have an ongoing and possibly substantial income — they are just looking for help in restructuring the debts in order to pay them off or negotiate them down. This type of bankruptcy can last for years until the debts are paid off.\nWhile both types of bankruptcies last for 10 years on your credit report, a Chapter 7 filing can have a more detrimental effect on your credit score.\nRebuilding Your Credit and Your Life After Bankruptcy\n-----------------------------------------------------\nThe first goal for someone emerging from a Chapter 7 or during a Chapter 13 bankruptcy, is to begin to rebuild your credit. There is no quick and easy way to do this so don't think it is going to happen overnight. It will takes years to get your credit score back to where it once was but if you follow these steps, you will see the rewards of your hard work.\n1.  **Get and Use a Secured Card Card.**  If your credit score has taken a severe hit, you will more than likely not be able to get an unsecured credit card. A secured credit card will require you to make a deposit up front before they will issue you a card. The benefit of using one is that they will report your activity to the credit bureaus so you will begin to build up a new credit history. Eventually, you might be able to convert this secured card into an unsecured card, as long as you pay your bills on time and show the bank you are becoming a good credit risk.\n2.  **Manage Your Credit Post-Bankruptcy.**  Filing bankruptcy affords you a fresh new start in your financial life, so avoid at all cost falling back into the same mess you just came out of! You are going to need to manage every dollar that comes in and goes out to make sure you are not falling into debt again. Get on a budget plan and stick to it — even it that mean slimming down your lifestyle. An over zealous lifestyle is probably what got you into this mess in the first place so don't repeat the process again.\n3.  **Build Up a Savings Account.**  After you have worked out a manageable budget, make sure to factor into your budget saving money and putting it into some type of savings account. Have a set amount you are going to sock away every month. Before you know it, you are going to have a nice nest egg built up, which you can use for an emergency or just let is grow for retirement. This will show lenders you are capable of saving money, not spending it.\n4.  **Pay Your Bills on Time.**  You are going to need to show future lenders that you are becoming a more desirable credit risk and the only way to do this is to pay your bills on time. Don't come out of bankruptcy and fall back into your old habits — this will not get you any new credit down the line. Lenders want to see that you corrected your mistakes and are now able to control your financial life and spend within your means and pay your bills on time.\nHaving a Life After Bankruptcy\n------------------------------\nFiling for personal bankruptcy is the last resort for those who cannot carry their current debt load, but it often comes with further financial damage and emotional strain. Understanding the reasons for your crushing financial picture and slowly rebuilding your credit history are critical steps in surviving the process. There is life after bankruptcy but you will need to take the necessary steps to make sure you do not fall into debt again. You now have a fresh start with some new challenges so keep your chin up and all of your hard work and determination will pay off in the end. END
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 TITLE: Millennials or Generation Y Adults Have a Lot of Bad Debt CONTENT: Why Do Millennials Have So Much Bad Debt?\n-----------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 18, 2017_\nThough Americans of every generation carry bad debt, one generation seems to be at the top of the class. Millennials, those born between the late 70s and the early 2000's (also know as Generation Y), seem to be particularly susceptible to overwhelming bad debt. While some contend there is no \"good\" debt, mortgages and student loans are considered in this category. While Generation X tends to excel on the good debt front, Gen Y has far more in the way of \"bad\" debt, including credit cards, other lines of credit and car loans. The question is, why?\nConstant Engagement\n-------------------\nParents of Millennials were particularly attuned to the importance of giving their kids every opportunity to further themselves — socially, intellectually and artistically. From play groups; to tutoring; to music, dance and art classes, Gen Y was raised to stay busy, not with just any run-of-the-mill activities, but those equated with social and\/or cultural status. As adults, this may translate into a chronic need for Millennials to keep their schedules full of more engagements than they can afford, be it brunch, lunch and\/or dinner with friends; near-nightly entertainment; or trips abroad.\nAccording to a recent study by the Department of Agriculture, parents now spend over $40,000 more on each child compared to child rearing costs back in 1960. Of course you have to factor in inflation, but, two income families seem to spend a lot more on the \"needs\" of their children than they did when just dad went to work every day and mom stayed home to entertain and take care of the kids.\nInstant Gratification\n---------------------\nUsing the Internet as children taught Generation Y-ers early on, what they want is just a mouse click away...right now. Instead of the prolonged shopping experience of planning a shopping trip, physically visiting different stores — perhaps over a period of days or even weeks to find the perfect (affordable) thing — Millennials may condense the same into less than hour's time online. This heightens impulse-buy behavior, as any sudden desire to have something can be realized immediately. Unfortunately, this deprives Gen Y of good-old-fashioned second-guessing that helps keep the best of budgets in check, as there may be no lag time between desire and realization. Add to that the tendency of Gen Y parents to provide for their kids' every want and whim, and it's no wonder Millennials tend to live above their means.\nTighter Job Market\n------------------\nConventional wisdom has always held that a degree gives college graduates a leg up, particularly during tough economic times. But in the wake of The Great Recession, the experience of Millennials proves there is no guarantee in the job market. Since the number of qualified applicants far exceeds the number of job openings, Gen Y college grads are forced to take positions that may have no degree requirement at all, which almost always means earning far less than their education presumably deserves.\nSo, after spending four years in college to obtain a college degree, Gen Y-ers now have all of that student loan debt to contend with. Thinking they would be getting a job right after graduation making a nice income, when in actuality they are making just over minimum wage, makes it difficult to keep up with the monthly payments that need to be made on that now useless college education.\nContinuing Education\n--------------------\nTo better themselves (and their position amongst the competition), Millennials tend to enroll in advanced degree programs. While this will hopefully translate into higher earnings down the road, today it means higher student loan payments. For many, it's tough enough covering student loan debt incurred via a bachelor's degree. Tack onto that a master's, then maybe a doctorate, and it's no wonder Gen Y is drowning in debt. While student loans may be considered \"good\" debt, as it's an investment in future money earned, often covering the cost of student loans means charging up credit cards (bad debt) to make ends meet.\nSo what is the Millennial Generation to do? Budget, budget, budget (i.e., spend less, save more). If you can't afford to cover it with cash by the end of the month, you can't afford to charge it today. While this may mean holding off on something you want now, you may be surprised at how much more gratifying it is to wait for something you want until you've saved enough to have it. END
 TITLE: Predatory Lending Hurting Military Personnel in Debt CONTENT: Predatory Lending Practices Are Hurting Our Troops\n--------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 19, 2017_\nMillions of Americans have financial difficulty, but for men and women in the service, trouble making ends meet is compounded by a direct threat to their work. Finances for many military personnel are a month-to-month struggle. Deployments, relocations, and more can make this situation much worse for military families. Even by cutting corners, buying only necessities, and carefully budgeting income and expenses, many households are just one emergency or expense away from a financial crisis.\nPayday loans can be a quick solution to this need for short-term financial assistance. However, the high fees and structure of these loans can turn them into a debt treadmill. One loan often turns into multiple rollovers, and you find yourself paying hundreds or thousands of dollars more than expected. In the end, they are often a more serious problem than the one they were meant to solve.\nThe security clearance that millions of military personnel need to do their jobs is revoked if they fall into delinquent or excessive debt. That's because it is in direct violation of the Uniform Code of Military Justice, which requires military members to pay their debts. Thus, payday loans and title loans are particularly attractive to service men and women, as they offer immediate, discreet solutions for trouble making ends meet. \nWhat is the Military Lending Act?\n---------------------------------\nThe Military Lending Act was passed in 2006 to protect service men and women from predatory lending practices. In particular, the law caps the annual percentage rate at 36 percent for military personnel who take out payday loans and car title loans (as well as tax refund anticipation loans).\nHow Have Lenders Responded to the Military Lending Act?\n-------------------------------------------------------\nRather than discontinuing loans to service men and women, payday and title loan lenders have simply tweaked the specifics of their loan terms so as to fall within the legal limits of the Military Lending Act. Since the legislation only applies to payday loans 91 days or less and title loans six months or less, lenders have simply extended the length of their loans accordingly.\nWhat is the APR Charged For Payday Loans and Title Loans?\n---------------------------------------------------------\nThough it varies by state, the annual percentage rate for payday loans and title loans can be as high as 400 percent. Again, the Military Lending Act was intended to limit this rate to 36 percent on payday loans and title loans, but lenders have found ways around this simply by extending the length of their loans. Unbelievably, this means a loan of just a few hundred dollars can end up costing thousands to pay back.\nWhat Alternatives do Military Members Have to Payday Loans and Title Loans?\n---------------------------------------------------------------------------\nThe military offers financial assistance at low interest rates to those in need, but considering the potential for revocation of security clearance, service men and women are understandably leery of pursuing this option. Another alternative is a third-party financial counselor, such as VeteransPlus, a non-profit that offers advice and resources to military personnel. END
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 TITLE: Delinquent Debt Stats - How to Avoid Falling into Debt CONTENT: Delinquent Debt Statistics and What to do About Them\n----------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 15, 2017_\nFalling behind on your monthly payments can be a pretty powerless feeling. The good news is, there is always something you can do to get control of your debt and not to become another delinquent debt statistic. Below are four common debt scenarios along with what you can to do avoid getting further and further into debt.\n### 1 out of 20 people are at least 30 days late on a credit card or other non-mortgage account (e.g., automobile loan, student loan).\nBeing late on a credit card payment is one thing. Being 30 days late (or more) is quite another. That’s when you get reported to the credit bureaus and your credit starts taking a hit.\nSo, if you’re in the habit of paying late – on credit cards or anything else — it’s time to snap out of it.\nIt’s not only costing you in the form of late fees, but also in a lowered credit score that means higher interest rates going forward or the inability to qualify for new credit at all.\n**What to Do About It**\n*   Pay the bill as soon as you get paid, even if that means sending it in _before_ the due date. This way you cannot be tempted to divert those funds toward something else.\n*   Revisit and revise your budget so you can stop spending more than you earn.\n### Among people with debt past due, the average amount they need to pay to become current on that debt is $2,258.\nYou need not have over $2,000 in delinquent debt for it to feel too intimidating to tackle. It’s all relative to how much you have left over to put toward your debt at the end of the month, which may be nothing at all.\n**What to Do About It**\n*   Look at your budget, red pen in hand, and start slashing everywhere you can. Can you cancel cable? Cut your food budget in half? Move into a cheaper place?\n*   Look at your work. Could you be making more money somewhere else? Could you take a part-time job or side hustle? Start looking around.\n*   Put all extra money saved and earned toward your debt…period.\n*   Communicate with your creditors, letting them know you’re taking steps to get caught up.\n### 35 percent of people with credit files have debt in collections reported in these files.\nOnce a debt goes into collections, your problem is compounded. You’re not only behind on your debt payments; you’re also being hounded for them by unrelenting debt collectors.\n**What to Do About It**\n*   Confirm you actually owe the debt and not a scam.\n*   Confirm you are still legally required to pay the debt via debt validation and the statute of limitations (for details, see #4 below).\n*   Don’t ignore them. The problem will only get worse and could result in a lawsuit.\n*   Do the math to figure out how much you can afford to put toward the debt every month.\n*   Work out a payment plan with the debt collector. Just be sure not to agree to anything you know you cannot swing. Otherwise, you’re sure to fail.\n*   Know your rights. There are a number of things that debt collectors cannot legally say or do.\n### Among people with a report of debt in collections, the average amount owed is $5,178.\nIf you have thousands of dollars of debt in collections, it may seem insurmountable. But people climb their way out of debt every day, and there’s no reason you cannot be one of them.\n**What to Do About It**\n*   Try debt validation. This can be an especially effective tactic for old credit card debt. And more time your debt has been sold from one collector to the next, the less likely they have supporting documents to prove you owe the debt at all.\n*   Check the statute of limitations in your state. Once it passes, you’re no longer legally required to pay the debt. Debt collectors won’t let you know this though. It’s up to you to know your rights.\n*   For any debts that cannot be eliminated via debt validation or the statute of limitations, negotiate a payment plan to wipe the slate clean once and for all.\nRead the Urban Institute’s Delinquent Debt in America in its entirety. END
 TITLE: Delinquent Debt Stats - How to Avoid Falling into Debt CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
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 TITLE: Reasons for Increasing Debt in Older Americans CONTENT: Why is Debt Increasing Among Older Americans?\n---------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 14, 2017_\nOnce upon a time, the older we got, the less debt we owed. Today, it seems just the opposite. According to the Employment Benefit Research Institute (EBRI):\n*   8.3 percent of households 65 to 74 have debt that represents more than 40 percent of their income.\n*   41 percent of households 65 to 74 have debt tied to their home.\n*   24 percent of households 75 and over have debt tied to their home.\n*   38.5 percent of households 75 and over carry debt overall.\nWhat gives? After a lifetime of hard work and penny-pinching, why are Americans reaching retirement age with more debt than their younger counterparts? In 2016, the average household headed by someone age 55 or older had $73,211 in debt, according to the EBRI. That is staggering!\nTough Time Saving For Retirement\n--------------------------------\nIdeally, it's in our 20's when we start setting aside 10 to 15 percent of our income for retirement savings. The longer we wait -- into our 30's, 40's, or 50's-- the greater that percentage must grow to ensure there's enough in savings to support the cost of living by the time we reach retirement age. Some experts differ on just how much we need, but the safest bet is that whatever your current annual living expenses, assume they'll remain about the same in your retirement years. Yes, some expenses drop off the radar, but you can bet others will crop up to take their place.\nUnfortunately, saving for retirement is far easier said than done. For millions of Americans, it's all they can do just to make ends meet for current living expenses. While setting aside money every month for a retirement fund sounds like a grand idea, it's far more attractive to put that money toward the food they need to put on their tables today.\nLosing Work or Trouble Entering the Job Market\n----------------------------------------------\nIn recent years, as the job market has tightened, older Americans have suffered the consequences. While college graduates may have trouble finding work, older Americans have trouble keeping it. They're then doubly-challenged, as it takes older Americans much longer to re-enter the job market than it does their younger counterparts.\nMedical Expenses\n----------------\nWhile health care insurance and government financial aid programs may help cover most medical expenses, older Americans are still likely to pay something out-of-pocket. For those living on a fixed income, even what sounds like the most negligible of costs can be disruptive to a household budget.\nPaying the Debt of Family Members\n---------------------------------\nNearly 25 percent of Americans 50 and older say they have given money to relatives, or paid relatives' debts directly. And we're not just talking about the most fundamental of living expenses, like rent or food. Older Americans are footing the bill for relatives' student loans, weddings, and down payments on homes. Older Americans are also co-signing for credit cards, which they often end up being held responsible for paying.\nWhile anyone of us can appreciate the generosity of parents, grandparents or other relatives who offer help, it's only a responsible gift to accept from those who have a wealth of resources from which to draw from. Unfortunately, most do not, in which case their financial generosity compromises their own ability to look out for themselves, now and in the future.\nIncreasingly Relying on Credit Cards\n------------------------------------\nLiving off credit cards is nothing new to Americans, but it's a disturbingly increasing trend among the older demographic. Those 50 and older owe an average of $8,278 in credit card debt compared to an average of $6,258 of those under 50.\nJust what are older Americans charging onto these cards?\n*   Medical expenses\n*   Home repairs\n*   Car repairs\n*   Rent\/mortgage\n*   Groceries\n*   Utilities\n*   Insurance\n*   Debts of family members\nSo, at a time in their lives when they should have the luxury of relaxing into retirement, older Americans are stressing over credit card bills instead.\nHow Can Older Americans Get Out Of Debt?\n----------------------------------------\nIf you're 50+ facing a mountain of debt, or know someone who is, take heart. There are steps that can help:\n*   Do not offer financial help to relatives. It does your entire family a disservice when you divert your resources to others at your own expense.\n*   Tighten your budget. This certainly seems like a no-brainer, but we all have little expenses here and there that go unchecked. Go through your budget with a fine-tooth comb and cut where you can.\n*   Think about career longevity and job security. The fact is, you may need to work past traditional retirement years. Your best chances of doing so depend on career objectives that strengthen a long-term plan. Look into growing fields, such as healthcare, education, and non-profits. Get tech savvy. And network, as you never know when and where the next best job op could come from.\nAs for the money you do have in retirement savings, be mindful of who you entrust with its management. While there are many financial advisors who specialize in senior finances, all training and expertise is not created equal. Research carefully what your potential financial adviser's \"senior designation\" title really means (i.e., training time, testing, etc.). If you're satisfied with its requirement, ask for verification of training completion and certification. END
 TITLE: Reasons for Increasing Debt in Older Americans CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Is it True that Women Have More Debt Than Men? CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 16, 2017_\nBack in 1992, a quirky book entitled \"Men Are From Mars, Women Are From Venus\" became a hit and it could not have been more spot on when it comes to the differences between men and women. Not only are the sexes different when it comes to relationships but they also view money differently. Men and women have different ideas when it comes to handling debt as well as spending and saving money. In a recent survey by a consumer credit counseling service, it is estimated that there are more women in debt counseling but men have more trouble repaying what they owe. It was found 6 out of 10 defaults on payments were done by men.\nEven though men and women manage money matters differently, it is important when in a relationship to know that these differences may cause conflicts down the road. To keep a relationship healthy, it is a good idea to help one another and work together as a team. If you are single, then here is your chance to realize your shortcomings and get your financial matters under control - especially your debt.\nHow the Different Sexes View Debt\n---------------------------------\nWomen, in general, tend to be more optimistic with respect to their financial situation. In a poll done by Citigroup of women over the age of 40, a whopping 82 percent believed their financial situation was on the upswing. Was this do to women being \"out to lunch\" on the seriousness of their predicament? According to Lisa Caputo, CEO of Citibank's Women & Co. business, \"When people are optimistic, it's because they've taken the steps to make sure that their own personal financial situation feels good to them.\" Women are more likely to seek out help via credit counseling or using a credit repair company to get them out of debt.\nMen, on the other hand, were found to be more likely to default on payments which could be a result of rising unemployment or decrease in income. Even though, 65 percent of men earn more than women. It is also a known fact that more women than men will seek out professional help when dealing with debt so it seems a man's ego tends to get in the way of him getting the help he may need to get out of debt.\nReasons Women Have More Debt Than Men\n-------------------------------------\nWhen making efforts to deal with credit card debt, women seem to have more difficulties than men. There are a number of factors found to contribute to this:\n*   **Women Carry Balances on Their Credit Card Accounts.** In all, 60 percent of women said they carried a balance from one month to the next compared to 51 percent of men.\n*   **Women Pay Only the Minimum Payment Due.** According to a recent study, 42 percent of women make a habit of paying only the minimum payment on their credit card accounts, compared to 38 percent of men.\n*   **Women Pay Higher Interest Rates on Credit Cards.** When is comes to looking for a new card, just 31 percent of women go rate shopping to get the best deal on a credit card. As a consequence, women pay more in interest than do men.\n*   **Women Lack in Paying Off Their Balances Every Month.** Forty-five percent of men tended to pay their balances in full every month, compared to 39 percent of women.\n*   **Women Can't Resist a Sale.** According to a study published in the Journal of Financial Planning, 23.7 percent of women and only 4.5 percent of men agree they can't resist a sale.\n*   **Women Buy More Unplanned Items.** Noted in that same study, twice as many women as men agreed they buy unplanned items and buy without any true need. Women spend more on impulse.\nBesides those statistics given above, another reason women may have more debt than men is pure math - men make more money than women. Study after study clearly shows there is still a wide gap between the salaries men and women earn. There may be legislation in some states to prohibit this practice but it still does happen. Also, if a woman has to take care of children and work, she really has two jobs and one of them she does not get paid for.\nWhat Can Women Do To Get Out Of Debt\n------------------------------------\nSince we all know that women like to shop, I would strongly suggest you stay away from the mall. Going shopping only tempts you into making purchases you really don't need to make. You will be tempted to put those purchases on your already so-close-to-the limit credit card which is really not helping to pay down your debt.\nAnother suggestion would be to make a list of the monthly expenses that are truly necessary, such as gas for your car, food, utilities, rent\/mortgage payment, car payment and insurance. Any money from your monthly salary that you have left over after paying for these necessities put that money toward paying off the balance on your credit cards. You will be amazed at how quickly you will be able to pay these cards off.\nSeek out professional credit counseling if you feel you cannot go it alone. There is no shame with seeking out moral and expert support from this kind of organization and it just may the thing you need to get you back on your feet.\nJust because you are a woman, does not mean you have to have more debt. If you work hard at saving money and not spending frivolously, you will be able to get out of debt in no time at all. END
 TITLE: Is it True that Women Have More Debt Than Men? CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
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 TITLE: Bankruptcy Abuse Prevention and Consumer Protection Act CONTENT: Bankruptcy Abuse Act Changed Bankruptcy Attorney Liability\n----------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 3, 2017_\nThe Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) opened a new era in the history of bankruptcy law and practice. It was passed by Congress and signed into law by President Bush on April 20, 2005.\nOctober 17, 2005 was the day the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 went into full effect, lowering the curtain on the previous era in bankruptcy law. The irony is that when that curtain came down, it crash-landed on the backs of perspective filers and bankruptcy attorneys alike.\nWhat Did the Act Provide?\n-------------------------\nThe BAPCPA gave the U.S. Trustee Program new responsibilities such as:\n*   Implementing the new means test to determine whether a debtor is eligible for Chapter 7 (liquidation) or Chapter 13 (repayment plan).\n*   Supervising random audits and targeted audits to determine whether a Chapter 7 debtor's bankruptcy documents are accurate.\n*   Certifying entities to provide the credit counseling that an individual must receive before filing bankruptcy.\n*   Certifying entities to provide the financial education that an individual must receive before discharging debts.\n*   Conducting enhanced oversight in small business chapter 11 reorganization cases.\nThe U.S. Trustee Program welcomed the opportunity to further enhance the integrity, effectiveness, and efficiency of the nation's bankruptcy system. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 represented an important development in the Program's efforts to improve bankruptcy procedures.\nHow Did the Act Come About in the First Place?\n----------------------------------------------\nThe new law was the brainchild of such non-legal eagles as lobbyists for credit card companies, and was riddled with hundreds of errors according to Corinne Cooper, professor emerita of law and author of \"Attorney Liability In Bankruptcy (American Bar Association, 2006).\" Ms. Cooper called the law, **\"Death by a Thousand Cuts\"** because there were so many changes that increased a bankruptcy attorney's obligation, which ultimately increased liability.\nHow the Act Affected Bankruptcy Attorneys\n-----------------------------------------\nThe first of these changes is one that puts the attorney on the spot before a perspective client walks in the door. Any attorney with a bankruptcy practice is required to advertise him or herself as a debt relief agency. The language is specifically spelled out in the statute: We are a debt relief agency. We help people file for bankruptcy relief under the bankruptcy code. This verbiage is not only for print ads, but must be included anywhere the general public may read about the attorneys services including his\/her web site.\nOn the surface, this appears to be a good thing. However, the scarlet letter advertisement, as Cooper refers to it, is every bit as devastating in its effects as the letter Hester Prynne wore. It's ensnaring grasp lies in the definition of debt relief agency. The statue has redefined the term so broadly, that it now includes attorneys who don't have regular bankruptcy practices. A classic example of this is the Family Law attorney who has just represented a woman in a divorce proceeding. The client's ex-spouse is filing for bankruptcy and the woman goes to her attorney to find out how the bankruptcy will affect her. If the attorney counsels the client, s\/he becomes a debt relief agency and is required to add the advertising verbiage to all print and electronic materials publicizing the practice. To avoid the trap, the attorney would have to direct the client to find a bankruptcy attorney to counsel her. Dollars and cents, it means two attorney fees instead of one.\nThe next minefield that attorneys worked to sidestep was the failure to comply with the new certification and debt relief provisions. There are provisions that must be stated in the contract and forms that must be given to clients by specific times. Failure to comply with these means sanctions and penalties. In some cases, the sanctions are so ambiguously written, as with the debt relief provisions, that no one seems exactly sure when a penalty is triggered. In other instances, the sanction is incredibly harsh. A contract between an attorney and client could become unenforceable because of failure to comply. What's more, there is an additional threat that a trustee may have the power to come after the fee the attorney was paid before the contract became unenforceable.\nHowever, the most abusive part of this anti-abuse law is that attorneys are now prohibited from making certain statements to their clients that they would have made in the past because of an ethical obligation. Cooper points to the instance in which a perspective client doesn't have the money to pay a bankruptcy attorney. In the past, the attorney would have instructed the client that it was perfectly legally to borrow the money to pay for representation as long as the client paid the debt and didn't attempt to discharge it. Under the new statute, an attorney is barred from giving this information to a client or risk being sanctioned.\nThe certification provision for a reaffirmation agreement would be laughable if it were written into a Saturday Night Live skit. But since it's a reality that attorneys must live with, it is far from a laughing matter. Under this provision, when a bankruptcy filer reaffirms a debt after the initial filing, the new statute assumes that the debtor is unable to pay the debt. However, even though that may be the case, the statute still obliges the debtor's attorney to certify that the debtor can pay. Obviously the law assumes that bankruptcy attorneys have the power to predict the future. And we all know what happens when you assume.\nThere were several cases that challenged the law's constitutionality, but all had been dismissed but one. END
 TITLE: Who Gets the Debt After Someone Dies CONTENT: Who Pays Credit Card Debt After Death?\n--------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 10, 2017_\nDealing with credit card companies is never a welcome experience, but particularly so regarding the debt of a deceased loved one. Yet, at a time when you need to mourn their death, and deal with other practical matters, credit card debt often rears its ugly head. The key to getting through it is to know the facts and communicate with the credit card companies accordingly.\nDo Family Members Inherit Credit Card Debt After a Loved One's Death?\n---------------------------------------------------------------------\nIt depends, but generally speaking, no. Provided you are not a co-signer on the account, family members cannot be held responsible for credit card debt that a loved one leaves behind. However, in some community property states, debt passes on to spouses. So the rules may vary if you live in Alaska, Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington or Wisconsin.\nAlso, the indirect impact of leftover credit card debt can be costly. Provided there is an estate with assets, credit card companies will be paid before any inheritances are paid to named beneficiaries of the estate. In some cases, this means there is little if anything left after all debts are paid by the estate.\n### What if There Are Not Enough Assets in the Estate to Pay Off Outstanding Credit Card Debt?\nIn that case, credit card companies are out of luck. This is a common scenario, as credit card debt is unsecured debt, forcing it to play second fiddle to secured debts that must get paid off first, such as mortgages.\n### Am I Responsible For Debt on a Deceased's Credit Card For Which I Am An Authorized User?\nNo. After the death of the cardholder, authorized users on credit cards are not legally responsible for the debt. That said, you could be in trouble if you continue to use an authorized card after the cardholder's death. Or, if you use the authorized card knowing the debt will not be paid off.\n### Am I Responsible For Debt on a Deceased's Credit Card For Which I Co-Signed As a Joint Account Holder?\nYes. After the death of the joint cardholder, legal responsibility for the debt passes on to you, the co-signer on the account. This is yet one more very good reason to minimize your number of joint accounts. While acting as a co-signer for family or friends may help them qualify for credit they may otherwise not receive, be mindful of how their spending and subsequent payment habits could end up hurting your credit in the long run. A joint cardholder could maintain good standing on the account simply by making the minimum payment each month. But they could simultaneously maintain a balance of thousands of dollars for which you will be fully responsible for at their death.\nWho's Responsible For Debt on a Credit Card Left Behind by an Ex-Spouse?\n------------------------------------------------------------------------\nIt depends. If you were a joint account holder on a credit card, and the divorce settlement included their agreement to pay off the balance on that credit card, let's hope they followed through. Otherwise, if that spouse dies before the credit card is paid off, then you are legally responsible for the debt.\n### After the Cardholder's Death, Can Credit Card Companies go After IRA's, 401(k)'s, Brokerage Accounts or Insurance?\nNo, as these are generally not considered part of the cardholder's estate. Instead, they should go to whomever the deceased named as the beneficiary. That said, it is possible the credit card companies could go after said beneficiary. That should not be the case for 401(k)'s and insurance policies, but beneficiaries of IRA's and brokerage accounts could be affect depending on the rules of the state.\n### Should I Contact the Credit Card Companies After a Loved One's Death?\nYes. You may be able to avoid future hassle and confusion by notifying credit card companies of your loved one's death. Granted, there are a number of difficult emotions to deal with and practical matters to take care of, so this may not be the priority at the top of the list. But it should be something that is addressed sooner than later, before payments are missed and fees accumulated on debts that may come out of the estate.\n### Can Credit Card Companies Continue to Allow Fees and Finance Charges to Accumulate on Credit Card Accounts While the Estate is Being Settled?\nNo. That is one more reason why it is important to notify credit card companies of your loved one's death.\nHow to Handle Collection Calls from Credit Card Debt Collectors After a Loved One's Death\n-----------------------------------------------------------------------------------------\nIf and when you start receiving calls regarding collection of the deceased's credit card debt, first ask for proof of the debt. Once you have received this validation, determine whether the creditor is still within its statute of limitations to collect on the debt (which varies by state). Finally, determine whether you, or anyone else, is legally responsible for the debt. If you are not responsible for the debt, but the creditor continues to hound you, you may file a complaint with your state Attorney General's office and the Federal Trade Commission. You may also consider consulting an attorney. END
 TITLE: Manage Federal Student Loan Debt CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 16, 2017_\nStudent loan debt is now greater than credit card debt for the first time in U.S. history. But did you know, student loans may not be charged off in bankruptcy. So, one way or another, you must find a way to pay them off, or otherwise live with the big hit your credit will take as a result of non-payment. Fortunately, if yours are federal student loans, you're in luck, as they offer more protections and options than their private student loan counterparts.\nWhat is a Federal Student Loan Deferment?\n-----------------------------------------\nDeferring a federal student loan means that, under certain circumstances, you are approved to postpone payment of the debt for a specified amount of time. Your federal student loan may be deferred if:\n*   You are in graduate school or the military.\n*   You are unemployed.\nWhat is a Federal Student Loan Forbearance?\n-------------------------------------------\nA federal student loan forbearance is similar to a deferment, in that you are approved to postpone payment of the debt, under certain circumstances, for a specified amount of time. However, unlike a deferment, a forbearance will continue accruing interest during the forbearance period, for which you will ultimately be held responsible. A forbearance should only be sought if and when you do not qualify for a deferment. Forbearances are common for those who are sick and unable to work, during which time the debt may be postposed for up to 12 months.\nWhat is the Pay-As-You-Earn Plan?\n---------------------------------\nIf you are unable to make your monthly federal student loan payments, you may qualify for the pay-as-you-earn plan. This may lower your monthly payment, as it is based on a presumably more affordable percentage of your income. If the loan is not paid off within 20 to 25 years, then pay-as-you-earn forgives the remainder of the debt.\nCan I Extend the Life of My Federal Student Loan?\n-------------------------------------------------\nIf you are having trouble making your monthly student loan payment, and have already exhausted your deferment options, you may consider changing your payment schedule. While you are probably currently scheduled to pay your loan within 10 years time, you may be able to extend repayment another 15 years. Just keep in mind that, as with loan consolidation, extending the life of your loan to 25 years means compounding interest rates. So while your monthly payment may decrease, what you're paying in the long run may increase considerably.\nCan I Consolidate My Federal Student Loans?\n-------------------------------------------\nYes, you may consolidate your federal student loans. However, while this may have the benefit of lowering your monthly payment, in the long run you'll end up paying more, as consolidating your debt into one loan, while simultaneously lowering your monthly payment, means extending the life of your debt and, in turn, compounding interest fees. So, if possible, you are better served finding a way to pay your student loans as they stand now. However, the last thing you want is for your student loans to go unpaid, as it hurts your credit and, should it come to this, you cannot include student loans in a bankruptcy. In other words, while you will pay more in the long run by extending the life of your loan, it may be a price you are willing to pay in exchange for protecting your credit.\nCan I Pay Off My Federal Student Loan Early, Without Penalty?\n-------------------------------------------------------------\nYes, unlike some other types of loans, you can pay off your federal student loan debt early, without penalty.\nUnder What Circumstances May a Federal Student Loan be Forgiven?\n----------------------------------------------------------------\nOnce you have made 120 payments, forgiveness of federal student loans may be possible if you are in any one of the following fields: law enforcement, early-childhood education, public health, emergency management, the military, school-based services and other public service jobs.\nAre Federal Student Loan Payments Tax Deductible?\n-------------------------------------------------\nYes, you are not required to pay taxes on income that goes toward paying down your federal student loan.\nWhere Can I Get More Information About Managing My Federal Student Loan Debt?\n-----------------------------------------------------------------------------\nYou should have been provided with loan counseling before and after receiving your federal student loan. For additional information and\/or questions about options specific to you, contact your loan servicer. You may also find helpful the National Student Loan Data System at www.nslds.ed.gov. END
 TITLE: Debt Collection After You Have Moved Out of United States CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 10, 2017_\nWe do get this question from time to time, and it was the subject of a recent discussion forum thread: \"What happens to debts when I leave the country?\"\nThe first issue that should be addressed is whether or not a contract for debt is enforceable outside of the the United States. The simple answer is \"No.\" Period.\nReturning to the U.S. With Outstanding Debts\n--------------------------------------------\nWe know that when you're out of the country, you leave your debts behind. But what if you decide to return to the U.S. after a number of years? There could be several situations.\n*   You have unpaid credit card, auto or mortgage debt and cease payments before or after leaving the country.\n*   You have unpaid debt in collection.\n*   You are sued for an unpaid debt after leaving the country.\n*   You get a judgment against you while out of the country.\n*   You already have a judgment against you prior to leaving the country.\nCan a Creditor Sue You When You're Out of the Country?\n------------------------------------------------------\nThere are all kinds of problems with a company suing you while you are out of the country. In some cases, depending on the loan agreement and local laws, the process server might have to serve you in the county where the contract was signed. In some cases, a the loan agreement might specify in which state legal arguments and court cases must be settled.\n**One issue trumps all others**. Technically, it's illegal for a creditor to sue you in a county or state in which you do not currently reside. Why is this illegal? In most cases, a state court rules state the creditor must sue in the county and\/state of the Defendant's current residence.\nWhat if a Creditor Sues Me Even Though It's Illegal?\n----------------------------------------------------\nEven though it may be illegal for a creditor to sue you while you're out of the country, it doesn't mean it won't happen. If a lawsuit goes uncontested, even if it shouldn't have been filed in the first place, the creditor can win and get a judgment entered against you.\nIf a creditor sues you where you no longer live and wins the case, you can appeal the judgment based on this fact. The gotcha here: most court rules only allow you to appeal or vacate a judgment within a certain time after the judgment is granted.\nIf you know you have unpaid debts and\/or defaulted debts, and you plan to return to the U.S., it would be worth your while to keep tabs on what is happening with those debts. You don't want to come home to the hassle of dealing with a judgment, even if it was technically granted illegally. END
 TITLE: Credit Card Debt Lawsuits - Robo-Signing Documents CONTENT: Handle a Credit Card Debt Lawsuit\n---------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 13, 2017_\nJust when you thought big banks had learned their lesson during the mortgage crisis, now comes the news some lenders are now using the \"robo-signing technique\" to collect on credit card debts. During the big push to foreclose on houses and displace millions of Americans, some banks were falsifying and mass-producing forged, unverified documents to use in their foreclosure lawsuits. In the autumn of 2010, major lenders such as JP Morgan and Bank of America were forced to suspend foreclosure proceedings. Eventually, a $26 billion settlement was reached between these banks and the aggrieved borrowers due to the fact they were \"robo-signing\" documents and were not properly documenting their foreclosure cases.\nNow, credit card companies like American Express, Citigroup, and Discover are filing lawsuits and going to court trying to collect money they say is owed to them by their borrowers. But, it has been discovered their legal processes are just as faulty and fraudulent as their predecessors, Bank of America and JP Morgan. Will these banks ever learn?\nAccording to a recent article in the _New York Times_, the same problem that plagued the foreclosure process is now emerging in the debt collection practices of credit card companies. Lenders are churning out lawsuits in record numbers without any regard to accuracy and validity. A judge in Brooklyn, who presides over as many as 100 such cases a day, says 90 percent of these credit card lawsuits are flawed. He claims, \"the lenders are not proving to the court who owes the debt nor are they able to document how much is really owed.\"\nThis article goes on to state that interviews with dozens of state judges, regulators, and lawyers indicate this incomplete and flawed documentation is becoming more and more common in credit card lawsuits. In total, borrowers are behind on $18.7 billion of credit card debt and credit card companies are scrambling to come up with ways to start collecting on this debt.\nRobo-Signing and Robo-Testimony\n-------------------------------\nRobo-signing is one of those terms that emerged out of nowhere and instantly became the buzz of the Internet. As a result of a federal investigation, it was confirmed that employees of Bank of America, Wells Fargo, JP Morgan, and two other banks were signing foreclosure documents without verifying the information was accurate or complete. Stacks and stacks of documents were signed or notarized without anyone reading the documents beforehand to make sure what they were signing was indeed true. Hence the term \"robo-signing\" was born.\nThis same disregard to verifying credit card debt has surfaced with a new cast of characters. Not only are employees of major lenders just signing whatever documents are set before them, but they are testifying in court on hundreds of cases without knowing anything about each case. These employees have been found to be giving robo-testimony, or the same generic testimony given in numerous cases. This was actually documented where a judge saw the same witness in several cases, saying the same thing.\nThere have been cases where lenders are going after customers who's bills have already been paid or the lenders are just tacking on bogus fee and interest charges. All of this is just a matter of employees being instructed not to verify anything and to just apply fees and charges across the board without looking at each account individually.\nHow to Win Against the Credit Card Companies\n--------------------------------------------\nFirst and foremost — don't ignore the lawsuit. Credit card companies are betting you will not show up to court and they will be awarded a default judgment. It is estimated that about 95 percent of these lawsuits are resolved by default judgment in favor of the credit card company because the borrower did not show up for the hearing. Show up to court — you never know how weak your lender's case against you might be.\nIf you feel a bit overwhelmed with the lawsuit process, hire an attorney. There are plenty of consumer advocate attorneys out there who love to help out the little guy. More and more attorneys know these cases are a slam dunk because the lenders can not prove their case nor are they willing to make any effort to provide any supporting documentation. When push comes to shove, if you make the lender work to prove you owe the debt chances are they will not be able to and the lawsuit will be dismissed.\nLastly, amid the surge of lawsuits being filed by the credit card companies, there is a rise in the investigations being done by the Office of the Comptroller of the Currency against larger banks such as JP Morgan. With more and more employees becoming whistle-blowers, more attention is being drawn to these lenders to make sure what they are presenting to the court is accurate and valid information. Make the lender prove their case and make sure they are able to prove the debt is yours and the amount owed. If they can't — YOU WIN! END
 TITLE: Tips for College Grads to Minimize Debt CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 13, 2017_\nAfter spending four challenging years earning a college degree intended to maximize your financial future, there is nothing more discouraging than starting out your brand new life with a big pile of student loan debt. While much of this may be unavoidable, depending on the size of your student loans, there are certainly steps you can take to effectively manage and minimize your debt going forward.\nMinimize Debt During School\n---------------------------\nCollege graduates are leaving school with a collective $1 trillion in student loan debt, so it is imperative students exhaust every possibility for minimizing debt. Explore all your options for scholarships and financial aid, even if you don't think you'll qualify, as you may be surprised. Work a part-time job during the school year; full-time in the summers. Avoid credit cards (at least until your senior year). And if you have any unused student loan money, avoid the temptation to spend it on extras and return it to the lender instead.\nApply For a Credit Card\n-----------------------\nCredit cards in your name can help establish the kind of money-saving credit history you will need after graduation, from renting an apartment, to turning on utilities, to getting insurance. However, it can be tempting for college students who are pinching pennies to max out cards, racking up debt that haunts them way beyond graduation. Avoid this trap by waiting until your senior year to get a credit card in your name, as it only takes six months to establish credit. If you have trouble qualifying for an unsecured credit card, get a secured credit card, which can help build credit equally well. Once you've proven to be a responsible borrower, you should have no trouble upgrading to an unsecured version with the same lender.\nUse Your Credit Card Wisely\n---------------------------\nThe only way to prove yourself responsible with credit is to use it. So while you don't want to max out a credit card, neither do you want to let it gather dust in your wallet. Get in the habit of using your credit card, but only on essentials so as to avoid buying things you don't need. Paying your regular monthly bills, like the phone bill or the electric bill, with a credit card are a good way to go.\nPay Off Credit Card Balances Every Month\n----------------------------------------\nTry to avoid paying interest fees by making it a habit of returning your credit card balance to zero every month. This means, of course, only charging as much to the card as you can turn around and cover with cash.\nObtain Student Loan Payment Details\n-----------------------------------\nBefore you graduate, find out the precise date you are expected to start making your monthly student loan payments, as well as the amount. If yours is a federal loan, you will automatically be entered into a 10-year payment plan. While you can extend the length of this loan term, do your best to manage it over 10 years time. Though an extension will lower your monthly payments, it will also increase the interest, increasing how much will actually pay in the long run.\nCreate a Monthly Budget\n-----------------------\nSit down and do the math on your ratio of monthly income to expenses. Factoring in your student loan, rent, utilities, food, and other necessary expenses, subtract that from your paycheck, and you'll know how much you have left over for savings and extras.\nPay Your Bills Early\n--------------------\nLiving expenses are large enough without tacking onto them fees for making late payments, on anything from rent and car payments, to utilities and credit cards. So instead of waiting until the last minute and potentially missing a payment by as little as a day's time, get in the habit of paying your bills early -- if you can swing it, as early as the day the bill arrives.\nLive on the Cheap After Graduation\n----------------------------------\nIf you're already in the habit of pinching pennies in college, it's not too much of a stretch to continue doing the same once you graduate. Certainly, you want to acquire nice things, but that can wait a year or two while you get into a new groove of living, experiencing firsthand exactly what things cost, what you can afford, and what's really important to you in terms of future financial investments.\nStart to Save Money\n-------------------\nThe emphasis on this point is not so much about quantity as it is about quality. Starting out, the benefit of saving is more about growing the habit than any big stack of cash. As long as it's a behavior built into your financial life, the size of your savings will naturally grow as does your income.\nMonitor Your Credit Reports\n---------------------------\nThe better your credit score, the better terms you'll be able to secure from lenders. The last thing you want to do is assume that just because you are making on-time payments to your creditors, your credit reports are in tip-top shape. The credit reporting bureaus do make mistakes, and it's your responsibility to catch them. And while you may not be thinking about buying a home or a car anytime soon, it's still important to manage the credit history now that will affect you for many years to come. You are entitled to one free annual report from each of the credit agencies. Request your copies via AnnualCreditReport.com. END
 TITLE: How to Deal with Medical Debt and Pay Medical Bills CONTENT: How to Deal with Medical Debt Caused by Overwhelming Hospital Bills\n-------------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: July 19, 2017_\nHospital bills are the number one reason for filing for Chapter 7 bankruptcy in the United States. Even if you are not forced to the brink of bankruptcy, you don't have to end up plowed under by excessive medical debt. There are many options and resources available to get help with your hospital bills. Some of these methods will work even if the hospital bill is already in collections.\n**Note:** Keep in mind that medical bills wind up in collections very quickly, and collection agencies handling these accounts usually have good records. Debt validation does not usually work with a medical collections firm. Do everything you can to keep accounts out of collections.\nContact Hospital Financial Assistance\n-------------------------------------\nMost hospitals have a financial assistance expert on staff. Sometimes this expert can set you up with a payment plan right at discharge, and so long as you follow the plan the hospital will basically leave you alone. The expert can also offer help with insurance. He can, for example, often set you up with a county or state insurance plan that you've never even heard of. He can sometimes get those plans to retroactively pay the bill, too.\nThis person is also the gatekeeper for the hospital charity application. If a charity application gets approved then a portion of your bills, maybe even all of your bills, will wind up forgiven.\nVictims of Crime Programs\n-------------------------\nThese programs are only available to those who get injured because of someone else who is committing a crime. Note that you can't have been committing a crime yourself at the time! These programs will pay your hospital bills, but you have to file the claim correctly and in the proper fashion. Ask the police or the hospital for help with contacting the Victim of Crimes department. If your bill is in collections already the agent may be able to get this information to you as well, provided the statute of limitations on filing has not already expired.\nWorkman's Compensation\n----------------------\nIf your trip to the hospital is the result of a workman's comp case, you should be prepared for events to slow to a crawl. It takes a lot of time to resolve these cases and a lot of conversations, so make sure you keep all of your case information handy at all times. Many of these cases do wind up at the collection agency before they end up getting paid. Since the collection agency knows the workman's comp insurance provider has bigger pockets than you do, they will typically want to push it with the insurance provider instead. You just need to make sure the bill in question relates, directly, to the workman's comp injury. Be sure you give the agency all of the information they ask for.\nAutomobile Accidents\n--------------------\nThere's a hierarchy of responsibility when it comes to automobile accidents, as multiple insurance companies and individuals are typically involved. A lot of \"who has to pay what\" depends on the circumstances of the accident. Make sure the hospital or collection agency has all of the information they need to resolve the problem. That information includes the contact information and car insurance information for everybody involved in the accident. They will also need your medical insurance information. If any attorneys are involved, the hospital or collection agency will need that information too.\nCharitable Programs\n-------------------\nIf you can't turn anywhere else, there are several charities that help out with medical bills. Try the Access Project, the CancerCare Co-Payment Assistance Foundation, Children's Health Fund, Catholic Charities and Free Medical Camps, just to name a few. There are also charities that target prescriptions, diapers, and other needful things.\nDouble Check Your Insurance Company\n-----------------------------------\nSometimes, insurance refuses to pay the bills for reasons that are easily fixed. The most common fixable problem is a co-ordination of benefits, where the insurance company believes you might have a second health insurance company. If you do, they need that information so the two insurance companies can decide who has to pay what. Usually a simple fax that outlines your insurance situation will solve the problem. Sometimes it can even be done through an automated system phone call. Some insurance companies ask for co-ordination of benefits information every year as a matter of policy. Make sure you read everything that comes from your medical insurance company to avoid this problem.\nGoing bankrupt over hospital bills should always be a last resort, after every other option and resource has been exhausted. If you're sick right now, know that the financial troubles can eventually be solved one way or another. Concentrate on healing for now, and worry about the price tag later. END
 TITLE: How to Negotiate and Settle Medical Debt CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 18, 2017_\nWe are hearing more about people who are getting into debt because of exorbitant medical bills and no way to pay them. The **_New York Times_** recently wrote an article about a laid-off New Jersey supermarket executive who received a $171,569 medical bill for a six-day hospital stay due to a heart attack. Since he was unemployed, he did not have health insurance and one has to wonder, what in the world is this guy going to do? Better yet, what can any of us do if we get a medical bill such as this?\nNegotiating hospital and doctor fees is not an easy task, but it can be done. The most important thing to keep in mind is to not bury your head in the sand and think these bills are going to magically go away on their own. You must apply for help or try to negotiate these bills within 90 days of incurring the bills. Any longer, and you run the risk of these bills going to a collection agency. If that does happen, fear not — we will discuss tips on negotiating medical bills with collection agencies later in this article.\nSteps to Negotiate and Settle Your Medical Bills\n------------------------------------------------\n### **Step 1: Organize and Review Your Medical Bills**\nYou will be surprised how many bills you will receive from a stay in the hospital. From the ambulance ride to the hospital, to the lab tests, to the prescription drugs, you will receive a multitude of bills in the mail. Make sure to keep track of them and putting them all into a spreadsheet would be the best idea.\nNext, you will want to review each and every bill to make sure there are no errors such as overcharges or double-charges. Keep a look out for these common billing mistakes:\n*   If you are discharged in the morning, protest if you're billed for a full daily-room rate for the date you left the hospital.\n*   If you brought your medications with you, make sure you weren't charged for them by the hospital.\n*   Dispute any additional fees on your bill for routine supplies, like gowns, gloves or sheets. These items should be factored into the hospital daily-room charge.\n### **Step 2: Negotiate Bills With the Original Creditors Once You Know How Much You Can Afford to Pay**\nNow that you have all of your bills, you need to see how much will be paid by your insurance carrier (if you have one) and how much will be your responsibility. If you have medical insurance, you should see an amount that was paid by your carrier deducted from the total amount due. If you do not see this, immediately get on the phone with your insurance company to make sure you get this corrected.\nIf you do not have any medical insurance, the balance will have to be paid by you. Either way, you now will have a total amount that you are responsible for. Next, how much can you afford to pay? If you only have so much money saved or money left over after your monthly bills are paid, you need to know this amount.\nCall each provider and explain to them you only have so much money to pay on this bill and what can they do to try to discount this bill for you. More often than not, a provider would rather get some money than no money so they will be more inclined to work out something with you. If not, there are a lot of medical bill negotiators that call handle this dirty deed for you.\n### **Step 3: Negotiate Bills With Debt Collectors**\nSometimes getting everything together takes longer than you thought, and now some or all of your medical bills have been sent or sold to a collection agency. There are a few things to consider first and foremost before you start to deal with a collection agency:\n1.  Determine if the bill is past the Statute of Limitations. The Statute of Limitations varies from three to six years so you will have to check your state laws to verify the exact time limit. And, the SOL starts when an account becomes delinquent or when you last made a payment - not the date of service.\n2.  A collection agency may try to \"re-age\" the debt by having you make a small payment on it. If you make a payment on the debt, it will restart the SOL clock so be very careful on what you say and agree to with a collection agency. Make sure you come to a full and final agreement before you make any payments. Refer to our article on dealing with collection agencies for more info.\n3.  If you want to settle your debt with a collection agency, offer them 25 percent of the original amount. They can afford to settle these debts for far less than the original amount because they buy these debts from the hospitals and doctors for pennies on the dollar. What they get from you is pure profit so make sure to stick to your guns when negotiating an amount. And, make sure to get everything in writing!\n4.  After you settle with a collection agency, a \"debt settled for less than the full amount\" will appear on your credit report. Fear not - it will fall off after seven years. It might not be a perfect solution, but it stops the phone calls and letters and the worry of this bill hanging over your head.\n5.  You will get a Form 1099-C from the collection agency. If you were insolvent prior to settlement of the debt, you can file a Form 982 to claim an exclusion to paying the tax on the canceled debt.\nAs we stated earlier, the worse thing you can do is to ignore your medical bills as they will not go away. You don't have to let them lead you down the path to bankruptcy - you can negotiate your bills with the original creditors or with collection agencies. All you need is some guidance and you can settle your medical debts for far less than you thought possible. Make sure to take advantage of any financial assistance and the help of numerous medical bill advocates who can help you get your medical bills under control. END
 TITLE: How to Negotiate and Settle Medical Debt CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: How to Negotiate and Settle Medical Debt CONTENT:    |  |  |  | \n: . END
 TITLE: How Thieves Can Steal Your Identity CONTENT: 11 Ways a Thief Can Steal Your Identity\n---------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: April 19, 2017_\nThough countless things make up the whole of your identity, thieves may only need a single piece of information to steal it away from you. It could be a social security number or a credit card number, but it could also be something far less-guarded that you share openly, and often, without a second thought. Like your birthdate. Your address. Your phone number.\nWhat's worse is that identity thieves have so _many_ means of collecting your personal data. They know them all. Do you?\n#1 - Purse and Wallet Theft\n---------------------------\nIt's a little old-school, but when it works, it works _wonders_. A thief who manages to get their hands on your purse or wallet gains access to your driver's license, credit cards, debit cards, checks, and possibly even your passport. With this wealth of resources, they can do just about anything.\n**Tips:**\n1.  Never leave your purse or wallet in the car, even if you're just running into the store for a minute. In fact, never leave your purse or wallet unattended anywhere but in your own home. The only exception is in the homes of family and close friends (provided it's not a social gathering of people you do not know).\n2.  Only carry in your purse or wallet things you absolutely need. Why carry all your credit cards when you only need one? Why carry your checkbook when you only write checks to pay bills once or twice a month? And though it can probably go without saying, here it is just in case, never carry your social security card or birth certificate.\n#2 - Mail Theft\n---------------\nThink you get exited about checking your mail? Imagine the excitement thieves feel at the prospect of discovering in your mailbox boxes of checks or pre-approved credit card offers. Then there's all the information they can piece together from phone bills, bank statements, and tax documents.\n**Tips:**\n1.  Go paperless. As much as possible, request from your utility companies, bank, credit card issuers, and the like that your bills and statements be sent to you via email.\n2.  Check your mail as soon as possible, every single day, to limit potential accessibility.\n3.  Take outgoing mail directly to the post office. Even a secured drop box in your apartment complex or the like can be broken into. And never, ever, no matter what, put outgoing mail into an unlocked mailbox. That red flag you put up to catch the postal person's attention does the same for identity thieves on the prowl.\n#3 - Dumpster Diving\n--------------------\nWhat you're good and done with may be just the beginning for identity thieves from bank statements, to credit card offers, to tax documents.\n**Tips:**\n1.  Shred everything. Well, everything that has your name and other personally identifiable information on it, be it a mailing address, phone number, account number, social security number, etc.\n2.  If in doubt, shred it anyway.\n#4 - Copying Card Information at Checkout\n-----------------------------------------\nEvery time you hand your credit or debit card over to a stranger, you're handing them a key to your life. Granted, these days we're the ones doing the swiping much of the time, meaning our cards never leave our hands, but that's not always the case, particularly at restaurants where servers disappear with our cards for stretches of time plenty long for them to copy down our card info.\n**Tips:**\n1.  Pay with cash at restaurants. This may take some getting used to, but as inconvenient as it may be to stop for cash before dinner, it pales in comparison to the worst-case alternative. If cash isn't an option (it's always an option), choose credit over debit. You can only be held responsible for $50 of fraudulent credit card charges, whereas for debit cards it's $500.\n2.  For those times when you hand your card over to cashiers, be mindful of them turning their back to you and taking longer with the transaction than seems normal. Identity thieves have been known to use this opportunity to take a picture of cards with their smartphones.\n3.  After getting your card back from a payment transaction, always double-check to be sure it's yours. Identity thieves have been known to swap it out with a fake one, and you're none-the-wiser until the next time you try using it.\n#5 - Cell Phone Calls\n---------------------\nWho's not guilty of eavesdropping on someone else's cell phone conversation? Often, it's hard not to, especially when they're talking in a cafe or while standing in line, well, just about anywhere. For most of us it's just an annoyance or a guilty pleasure. For identity thieves, it's an opportunity.\n**Tips:**\n*   Never conduct personal business over a cell phone in public. This includes calls to your bank, utility companies, or any person or organization with whom you may be asked to share personal information. You know what it's like trying to access an account over the phone -- it's one query after another, from your address and phone number, to PINs and security questions.\n#6 - Skimming\n-------------\nAt best, outdoor ATMs and payment kiosks at gas stations and parking lots are a convenience. At worst, they are a magnet for identity thieves who use \"skimmers\" — devices surreptitiously attached to the ATM or payment kiosk so as to steal information from your credit or debit card.\n**Tips:**\n1.  Do not use outdoor ATMs. Either use an ATM inside your bank or make your transaction with a teller.\n2.  Do not use your credit or debit card in an outdoor payment kiosk. Use cash instead. Of course, this isn't an option when leaving a parking structure (if you forgot to pay before getting into your car). In that case, your only payment option is a card. In this case, user credit over debit, as you can only be held responsible for $50 of fraudulent charges on a credit card, whereas it is $500 for debit.\n#7 - RFID Readers\n-----------------\nThanks to the RFID smart chips now available in credit and debit cards (radio frequency identification chips) it is now possible to make payments via a contactless card reader that makes swiping unnecessary. Unfortunately, this new feature is especially attractive to identity thieves. Anyone can purchase an RFID reader, place it near your pocket or purse, and steal your credit card number, expiration date, and other info without a thief ever gaining physical access to your wallet.\n**Tips:**\n1.  If you don't know already, find out if your credit or debit cards are embedded with smart chips. Simply call the number on the back of each card and ask.\n2.  If one or more of your cards are embedded with smart chips, invest in RFID-protective card sleeves or wallets which will protect you from identity thieves using RFID readers.\n#8 - Phishing\n-------------\nWe're all pretty practiced at weeding out spammy, suspicious-looking email. But that's no deterrent for identity thieves who are still finding ways for their email \"phishing\" scams to trick us into believing theirs are the real deal (i.e., emails from people and organizations we can trust and share information with).\n**Tips:**\n1.  Do not open (or click on links inside) spammy, suspicious-looking email, even if it says it's from someone you know or normally do business with.\n2.  Do not respond to email with personal information. Legitimate businesses will never ask you to verify any personally identifiable information in this manner.\n#9 - Spyware\n------------\nIt seems we're always being encouraged to download one new program after another. Unfortunately, some programs are not all that they seem, as you may end up downloading \"spyware\" that identity thieves use to track your online activity and, in turn, steal your personal information.\n**Tips:**\n1.  Be careful what you download.\n2.  Invest in trusted anti-spyware software, like Norton or McAfee.\n#10 - Social Media Sites\n------------------------\nThe danger of over-sharing via social media is not limited to random thoughts, overzealous opinions, or sorted details of your life. Identity thieves are counting on you to over-share the seemingly boring details of your life too.\n**Tip:**\n*   Never post to a profile or update your full birthdate, address, or phone number.\n#11 - Data Breaches\n-------------------\nRetailers are at the mercy of identity thieves who manage to breach their point-of-sale security systems, taking your personal information with them.\n**Tips:**\n1.  Pay with cash whenever possible (it is always possible).\n2.  When you do pay with a card, choose credit over debit. Again, you can only be held responsible for up to $50 of a fraudulent credit card purchase, whereas it's up to $500 for debit.\nOther Ways to Protect Yourself\n------------------------------\n*   Don't sign blank credit card receipts.\n*   Change your online passwords frequently. Make them as strong as possible, using at least one capital letter, as well as non-alphanumeric characters. Avoid passwords that include your name (or the names of loved ones), birth dates, etc. And the more non-sensical the better, meaning you're best-served avoiding real words that can be found in the dictionary.\n*   Only make online purchases via credit or debit card on websites that are clearly secure (i.e. displaying the lock icon or \"https\" in the domain name.\n*   When making purchases with your card over the phone, only do so if you made the call.\n*   Remove your name from mailing lists.\n*   Check your checking and credit card activity daily via your online accounts.\n*   Check your credit reports at least once a year to be sure there are new accounts that you didn't open. Go to AnnualCreditReport.com to request your free copies from the three major credit reporting agencies, Experian, Equifax, and TransUnion.\nFeeling Overwhelmed?\n--------------------\nBreak it down to what's at the heart of every tip on this list: common sense. In every aspect of your life, make choices that limit how you treat, and with whom you share, personally identifiable information. END
 TITLE: How Thieves Can Steal Your Identity CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: How to Detect Phishing and Internet Fraud CONTENT: Beware of Phishing Cyber Scams and ID Theft\n-------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: April 19, 2017_\nPhishing is the act of attempting to acquire personal information such as usernames, passwords, and credit card details by masquerading as a trustworthy entity in an email communication. Phishing emails may contain links to websites, which are infected with malware so when the unsuspecting person clicks on the link, their financial information and passwords, that may have been saved on their computer, are stolen.\nThe sender may ask you to \"confirm\" your personal information for some made-up reason; your account has been closed, an order for something has been placed in your name, your information has been lost due to a computer error, etc. A phishing email will contain a concocted story designed to lure you into taking an action such as clicking a link or button in the email or perhaps calling a phone number and providing or confirming personal information.\nHistory of Phishing\n-------------------\nThe phishing technique was first described back in 1987 and the term \"phishing\" was established in 1995 as a play on the word fishing. A cyber-thief uses \"bait\" to \"lure\" his victim into clicking on a malicious link to which their private information was stolen. Hence, the beginnings of Phishing.\nHow to Spot a Phishing Email\n----------------------------\nThere are many telltale signs, but here are some of the most common:\n*   **Generic Email Greeting.**  A typical phishing email may address you in a generic fashion, such as \"Dear User:\"\n*   **Sender's Email Address.**  The address that the email is \"From\" may include an official looking one (possibly copied from the genuine business or entity). Be aware that email addresses can be easily altered and are not necessarily indicative of the validity of the sender.\n*   **It Requests a Quick Response.**  Most phishing emails are written with a false sense of urgency attempting to convince you that your account will be \"in jeopardy\" if you don't perform a particular action immediately.\n*   **A False Link or Website.**  Many of these phishing emails contain a link that looks valid to connect you to the \"Subject\" site, but directs you to a fraudulent site that may or may not have a URL different from the link provided. Even though the email looks like the \"real deal\", complete with authentic logos and working web links, it may well be just a clever disguise. See below for help in identifying a false website link.\n*   **Attachments.**  Only open attachments if you are expecting them and know what they contain. Even if the message looks like it came from someone you know, they could be from phishers and contain programs that may steal your personal information.\nHow to Avoid Being a Victim of Phishing\n---------------------------------------\nRemember, when it comes to phishing, you are in control. To protect your financial and identity information, simply ignore all email requests for information. Other tips include:\n*   **Keep Your Security Software Current.**  Protect your computer with spam filters, anti-virus and anti-spyware software, and a firewall and keep them up to date. A spam filter can reduce the number of phishing emails you get. To learn more about Internet security measures, go to OnGuard Online or StaySafeOnline.\n*   **Password Smarts.**  Be smart about choosing your passwords; change them often, and choose uncommon passwords that include numbers, letters and symbols.\n*   **Go to Actual Websites; don't use links.**  If you think the email message is legitimate, do not click on the link provided in the email to get to the website. Instead, go to the actual Web site by entering the URL for the home page, and look for the supposed legitimate Web page within the site to confirm.\n*   **Report Phishing Emails.**  Many of the companies that phishers commonly use to attempt to obtain your information will investigate emails forwarded to them from targeted victims. EBay and PayPal are good examples, and this will benefit all intended victims and helps stop identity theft. You can also report the problem to law enforcement agencies through the National Fraud Information Center\/Internet Fraud Watch at 1-800-876-7060.\n*   **Security Freeze Placed on Account.**  Look into having a security freeze placed on your credit files to help prevent credit information from being disclosed to open a new account without your explicit consent.\n*   **Never Enter Personal Information in a Pop-Up Screen.**  Legitimate companies, agencies and organizations don't ask for personal information via pop-up screens. Install pop-up blocking software to help prevent this type of phishing attack.\n*   **Phishing Also Happens by Phone.**  Be suspicious if you get a call from someone pretending to be from a company or government agency, and asking for personal information. Particularly if you are contacted out of the blue; it's a sign something is \"phishy\".\n*   **Ask Yourself if it Makes Sense.**  If this company already has your personal information, they would not request what they already have on file.\nTips on Identifying a False Website Link\n----------------------------------------\n**Hold your mouse over the link** in your email, but **DO NOT CLICK ON IT**. You will see where the link goes in the left bottom corner of the browser or your email software window.\nFor example, if the email were regarding a PayPal matter (though PayPal RARELY sends out email with a link back to their website), a SAFE link to PayPal would be:\n_something.paypal.com_\nWhy is this safe? Because the \"paypal\" part of the link is located immediately next to the \".com\" part of the link and \"paypal.com\" are the last letters in the link.\nAn unsafe link is something like:\n_something.paypal.com.add-me.net_\nWhy is this unsafe? Even though the \"paypal\" part of the link is located immediately next to the \".com\" part of the link, the \"paypal.com\" are NOT the last letters in the link. This means that the link is going to the website of \"add-me.net\" where most likely malicious code resides, or there is a form which mimics a form on PayPal requesting your information. END
 TITLE: How to Detect Phishing and Internet Fraud CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
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 TITLE: Recent Statistics on Identity Theft and Fraud CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 4, 2017_\nThe **Identity Fraud Report** released by Javelin Strategy & Research in February 2017, showed identity fraud reached new highs in 2016. Overall fraud incidents rose 16 percent to affect 6.15 percent of U.S. consumers, up from 5.30 percent in 2015 —  the highest on record. The study also found that there were two million more victims than 2015 and the amount the fraud thieves took was one billion more raising losses to $16 billion.\nIdentity Theft Trends\n---------------------\nThe 2017 Identity Theft Fraud Study found these significant identity theft trends:\n*   **Record high incidence** — In 2016, 6.15 percent of consumers became victims of identity fraud, an increase by more than 2 million victims from the previous year. \n*   **Card-not-present (CNP) fraud rises significantly** — The growth of e-commerce fraud is a result of increased online purchases which dramatically increased the prevalence of CNP fraud by 40 percent. Fraud at the point-of-sale (POS) remained essentially unchanged from 2014 and 2015 levels.\n*   **Account takeover bounces back** — After reaching a low point in 2014, both account takeover incidence and losses rose notably in 2016. Total ATO losses reached $2.3 billion, a 61 percent increase from 2015, while incidence rose 31 percent. Account takeover continues to be one of the most challenging fraud types for consumers with victims paying an average of $263 out of pocket costs and spending a total of 20.7 million hours to resolve it in 2016 — 6 million more than in 2015.\n*   **New-account fraud continues** — As EMV cards and terminals continue to permeate the point of sale environment, fraudsters shift to fraudulently opening accounts that allow them. At the same time, fraudsters have become better at evading detection, with new-account fraud (NAF) victims being notably more likely to discover fraud through review of their credit report (15 percent) or when they were contacted by a debt collector (13 percent).\n### Top Ten States for Identity Theft Complaints per 100,000 Population in 2016 \n**Missouri**\n364.3\n**Connecticut**\n225.0\n**Florida**\n217.4\n**Maryland**\n183.2\n**Illinois**\n158.7\n**Michigan**\n158.1\n**Georgia**\n149.1\n**Texas**\n144.3\n**New Hampshire**\n142.0\n**California**\n141.3\n* * *\nSource: 247wallst.com\n* * *\n### What is the best protection against identity theft?\n*   Shred sensitive documents that display personal information, such as pay stubs, bank statements, credit card statements and pre-approved credit card offers.\n*   When making online purchases, only share your credit card information on secure websites that display the yellow padlock icon in the bottom margin of your browser (below the web page area).\n*   Create strong passwords that are ideally at least 8 characters long with one lowercase letter, one uppercase letter, one number and one non-alphanumeric character. Change them often.\n*   Check your credit card and bank statements for unauthorized transactions.\n*   Check your credit report regularly so you can quickly catch and resolve any unauthorized accounts or activity.\n### Conclusion\nThe dramatic increase in identity theft last year can be dishartening but don't let those sobering statistics keep you from being proactive when it comes to preventing ID theft. We are our own best defense, before and after the fact. Protect your personal information and keep close watch on your financial statements and credit reports. END
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 TITLE: Information on Data Theft at ATMs CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: April 19, 2017_\nOver the last fews years, we have been hearing more and more stories about how sensitive information is being stolen from department store computers. Two big stories that come to mind are Target and Neiman Marcus where hackers made off with tens of millions of pieces of customer information including credit card numbers, expiration dates and the like. All of this information can be used by hackers to make duplicate credit cards and sell them on the black market. An unsuspecting person would not even know about the I.D. theft until either they were called by their bank or they pulled their credit report to find unauthorized credit accounts opened in their name. When these two things happen, it is too late and the damage has been done. You need to arm yourself with information and become proactive in the fight against identity theft so you do not become the next victim.\nATM Debit Card Data Theft on the Rise\n-------------------------------------\nAccording to a recent article in _The Wall Street Journal_, criminals are stealing card data from U.S. automated teller machines at the highest rate in two decades, preying on ATMs while merchants crack down on fraud at checkout. FICO data reveals that debit card theft at ATMs on bank property soared 174 percent from Jan. 1 to April 9, compared with the same time period in 2014. Successful debit card information theft at nonbank ATMs jumped by 317 percent. \"These tremendous spikes in fraud are unprecedented,\" John Buzzard, manager of FICO’s card-alert service.\nHow Do Thieves Steal Debit Card Data in the First Place\n-------------------------------------------------------\nYou can find an ATM just about anywhere - at your bank, in the mall at a kiosk, or at moveable stations at outdoor events. Having all of these ATMs does make it easy for us to get at our money, but it also makes it easier for someone to eavesdrop on your debit card information when no one is looking.\nIt seems the main way is the use of devices to fraudulently \"skim\" data from ATM cards so crooks can drain your bank account. Skimmers have evolved, and the new devices are so small and thin, they’re pretty easy to miss. The new skimmers sit within the throat of the ATM card reading slot, making them difficult to detect. The skimmers are used in conjunction with hidden cameras, which record consumers’ personal identification numbers as they type them in.\nThis type of hacking device is very easy to use at ATMs which are not located at a banking location. Which is why, it is always smart to use only ATMs that are located in or around a bank where security is much tighter, than the random ATM found at a golfing event.\nHow to Avoid Having Your Debit Card Data Stolen\n-----------------------------------------------\nThe first tip is, as we stated above, use ATMs located in or around banks. These machines have better security cameras around and if you are going inside to use the ATM, chances are there is a security guard around. This added security deters the would be thieves from installing a skimmer into the machine. It also deters someone from standing too close behind you and using a hand held type of skimming device.\nSecondly, we suggest when you do use any type of card reader or ATM, make sure to use your hand to cover the keypad. That way no one standing behind you can look at the PIN you are entering. Thieves have been known to watch a person type in their PIN and then follow them outside to steal their purse or wallet. Having this PIN enables the thief to empty out your account before you can place a hold on it.\nUnfortunately, with identity theft on the rise and more high-tech devices being used to steal your information, being well informed is the best way to not become a victim. Also, be careful about where you do your banking and always look around you when going to an ATM, especially if it is an area you are not familiar with. Taking these extra precautions will help keep your private information, private, and keep you finances safe. END
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 TITLE: Familiar Fraud and ID Theft Among Family and Friends CONTENT: Identity Theft Among Family Members and Friends Can Happen To You\n-----------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: April 19, 2017_\nHaving your identity stolen is a very disheartening and often terrifying experience — knowing that some complete stranger is posing as you and opening credit card and\/or bank accounts in your name. What if the thief was someone you knew and trusted? A Javelin Strategy & Research report in 2014 noted there were 550,000 reports of ID theft perpetrated by someone the victim knew. Familiar fraud cases can be traced back to family members, friends, coworkers, and in-home employees.\nThink this can't happen to you? Here are some tips to identify and protect yourself against family or familiar fraud and identity theft.\nWhat is Familiar Identity Theft?\n--------------------------------\nWhen identity fraud victims know their imposters, it can tear through both relationships and financial well-being. \"Familiar fraud\" or \"Family Fraud\" occurs when a friend, extended family member or even a parent uses a close relationship for their own financial gain. The thief takes advantage of bonds of trust, making the crime emotionally devastating. The perpetrator already knows the victim's personal information or has very easy acces to it.\nMany cases of familiar fraud go undetected for years. For example, when parents use the financial identities of their children, the fraud often goes undiscovered until the children attempt to build their own credit.\nWhat to do if You are a Victim of Familiar Fraud\n------------------------------------------------\nRemember, bank fraud is a federal offense. Unfortunately, if you have had a family member or friend use your Social Security Number to fraudulently obtain credit, you have two options:\n1.  Turn them in to the creditor. The credit card company will absolutely press charges against them.\n2.  Pay off the debt yourself, if they can't. If you can't afford the debt your relative has racked up, your credit will take a hit.\nMost of the people who wrote to us about relatives whose identity had been stolen were absolutely distraught because they couldn't pay the debts opened in their names and refused to turn over a member of their own family to the creditors; they were facing an unsolvable problem.\nWe've seen every possible kind of family member act as a thief: father, mother, son, daughter, parents, grandparents, grandchildren, in-laws, sisters, brother. Don't let this happen to you. Take the steps necessary to protect your identity and your credit. END
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 TITLE: Strong Passwords Prevent Identity Theft CONTENT: Strong Passwords Protect You From Identity Theft\n------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: April 19, 2017_\nThe importance of picking a secure password can't be emphasized enough. Your password is the only way to verify that someone logging into a particular account is really you. In the scheme of preventing identity theft, this is at the top of the list.\nBesides making sure you shred sensitive documents, store your information safely, review your credit reports and make sure you don't give out your credit card information insecurely, you need to have proper password management in order to be safe from identity theft. Identity thieves can hack into your accounts pretty easily and gain access to your identity information if you pick easy passwords.\nWe've seen some simply horrendous password choices: \"password\" and \"abc123\" being the most common passwords. On some level, people know that they should pick good passwords. Conflicting with this precaution is the knowledge that good passwords are hard to remember and they can't be troubled to write them down. They become lazy and pick passwords that are easy to remember — and crack. They also use that same password for every account. This is just human nature, but human nature is known for getting people in trouble.\nMany people think that having your account hacked due to a bad password simply can't happen to them. Wrong. Password cracking software, even the most crude, can crack the majority of poorly chosen passwords in seconds. Sophisticated cracking software is often available online for free, and many hackers exchange cracking routines often online.\nWhat Makes a Strong Password?\n-----------------------------\n1.  Your password should be at least 8 characters long, use one lowercase letter, one uppercase letter, one number and one non-alphanumeric character. Example: \"**39F@rever**\", which meets all of the rules. See? That wasn't bad, and not too hard to remember.\n2.  You've probably heard this before, but it's worth mentioning. Don't use anything that someone could easily guess. Avoid using birthdays, anniversaries, children's or pet's names, Social Security Numbers, or anything like that.\n3.  Do not use a password that can be found in the dictionary. It will be easily cracked. Also, anything that is sequential on your keyboard will be used by password crackers. In other words, \"QWERTY123\" is another example of a bad password.\nManaging Your Passwords\n-----------------------\n1.  Use a different password for network account, computer access account, email account, credit card account and banking account. Make sure they are absolutely unique and non-hackable.\n2.  Low security passwords are fine if you have accounts which will not compromise important information. Using these in multiple accounts are also ok.\n3.  Write down all of your passwords on a sheet of paper. Do not store them on your computer. Keep them stored away from your computer.\n4.  Must we say it? Do not store passwords on a public internet site.\n5.  Change your passwords at least every 6 months. Yeah, this is a pain, but trying to recover your identity is a bigger pain.\nOther Tips on Creating Strong Passwords\n---------------------------------------\nYour username is one half of the keys that an identity thief needs to get into your account. You can further protect your name by picking a username that a thief can easily guess.\n1.  Don't use your own name as your username.\n2.  Just as you don't want to use the same password for multiple sites, don't use the same username for all accounts.\n3.  Sometimes online services want your to use your email address as your username. If this is the case, all identity thief needs is your email address to start a systematic attack on your online accounts. Create a different email address to use as a username for each account especially banking accounts. Yahoo has disposable email accounts which are based on your base email account. All of these email accounts will be directed to your Yahoo base account. You can also set up free email accounts at many sites.\nSee the list of the top 500 worst passwords of all time. Approximately one out of every nine people uses at least one password in the list on that page, and one out of every 50 people uses one of the top 20 worst passwords. Don't be a statistic. END
 TITLE: Strong Passwords Prevent Identity Theft CONTENT:    |  |  |  | \n: . END
 TITLE: Protect Credit Card Information Shopping Online CONTENT: How to Protect Your Credit Information When Shopping Online\n-----------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: April 19, 2017_\nLet's face it, shopping online has never been easier or more convenient than it is now. The bargains are there, shipping is fast, returns are pretty easy, and you don't have to get in your car and drive around for hours looking for that perfect gift or outfit for your next party. You can't beat shopping in your p.j.'s while drinking a cup of coffee.\nShopping online does carry some risk and it could lead to identity theft. You can be reasonably sure you'll have a safe experience shopping online as long as you follow some basic guidelines.\n### **Use Familiar Websites When Shopping Online**\nStart at a trusted site rather than shopping with a search engine. Search results can be rigged to lead you astray, especially when you drift past the first few pages of links. If you know the site, chances are it's less likely to be a rip off. We all know Amazon.com and that it carries everything under the sun; likewise, just about every major retail outlet has an online store, from Target to Best Buy to Home Depot.\n### **Look For Secure Lock Logo on a Website**\nNever ever, ever buy anything online using your credit card from a site that doesn't have SSL (secure sockets layer) encryption installed - at the very least. You'll know if the site has SSL because the URL for the site will start with HTTPS:\/\/ (instead of just HTTP:\/\/). An icon of a locked padlock will appear, typically in the status bar at the bottom of your web browser, or right next to the URL in the address bar. And, NEVER give your credit card number over email.\n### **Don't Give Out Personal Information**\nNo online shopping store needs your social security number or your birthday to do business. However, if crooks get them, combined with your credit card number for purchases, they can do a lot of damage. The more they know, the easier it is to steal your identity. When possible, default to giving up the least amount of information.\n### **Check Your Credit Card or Bank Statements**\nDon't wait for your bill to come at the end of the month. Go online regularly and look at electronic statements for your credit card, debit card, and checking accounts. Make sure you don't see any fraudulent charges. If you do, call the financial institution immediately so they can put a freeze on your account.\n### **Install Antivirus Software on Your Computer**\nThieves and hackers don't just sit around waiting for you to give them data; sometimes they give you a little something extra to help things along. You need to protect against malware with regular updates to your anti-virus program.\n### **Use Strong Passwords to Access Accounts**\nWe like to beat this dead horse about making sure to utilize uncrackable passwords, but it's never more important than when banking and shopping online. See our tips for creating a strong password.\n### **Privatize Your Wi-Fi Connection in Your Home**\nIf you do decide to go out with the laptop to shop, you'll need a Wi-Fi connection. Only use the wireless if you access the Web over a virtual private network (VPN) connection.\nBy paying attention to these tips, the odds of your being victimized by online fraud are pretty low. Here's to a happy and safe online shopping experience! END
 TITLE: Using Social Media Sites to Steal Identity and ID Fraud CONTENT: Avoid ID Theft - Never Share Personal Information on Social Media\n-----------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: April 19, 2017_\nSocial media outlets are more popular than ever and not just with adults, but with teenagers as well. With the digitization of personal information and the popularity of social media, your privacy is at risk more than ever. Internet stalkers are just waiting for some unsuspecting person to share information on FaceBook, Twitter, Pinterest, or Google +, where they can steal it and use it for identity theft or fraud. You or your child may feel that posting trivial information on FaceBook is innocent, but you will be surprised on what little information an ID thief really needs to cause complete havoc in your financial life. The following pieces of information should never, or very sparingly, be shared on any social media outlet.\nNever Share Your Driver's License Information\n---------------------------------------------\nPosting this type of information may be more germane to your teenager. Your child may want to boost to their \"friends\" that they now have a driver's license or maybe they want to share that silly ID photo with all of the world. Unbeknownst to them, a driver's license or any form on I.D. contains more than just a funny picture, it contains date of birth, address, and sometimes even a social security number. One or more of these bits of information, in the wrong hands, is more than enough to steal your child's identity. Access to this information could allow identity thieves to open a new line of credit, like a credit card, and ruin your kid's credit in the process. \nDo Not Post Vacation Itinerary and Location Information \n--------------------------------------------------------\nWe all know how excited we are to share photos of the beach you are visiting or maybe the winery where you are going wine tasting, but this kind of information can be used by thieves. Not only does a burglar know you are not home, but they may know when you will be back since you have posted all of this information on FaceBook. Using all of this information, they can plan the robbery of your home or maybe your place of business, if you own a small business. If you use geotagging for your posts to show your location or list the city where you live, burglars can use this information, along with your personal information, to find out exactly where you live and target your home. We can't think of anything worse than coming back from a wonderful vacation to find your house has been robbed.\nNever Share Bank Account Information\n------------------------------------\nThis really should go without saying, but apparently it needs to be said - never, ever post any kind of financial information on a public forum such as FaceBook, Twitter, Pinterest or Google Plus. But imagine this, your child who just got their first job, is so excited about their first paycheck that they post a picture of the check AND they add #myfirstpaycheck to it. Need we say more? Any low-life identity thief can access that hash tag, or similar, and pull up all those posts from overly excited employees posting way more information than they should. A paycheck contains a lot of personal information, your name, address, where you work, banking information, which is more than enough to get your ID stolen. Not only is your child putting themselves at risk, but they are also exposing their place of business as someone could use the check information to create fake checks and steal from the business. \nLimit the Amount of Personal Information on Social Media Profiles\n-----------------------------------------------------------------\nLet's face it, most of us use one or more social media platforms to stay connected to our friends and family by way of sharing pictures, thoughts, and experiences with each other. Knowing that you want to share your info with only those people, you need to make sure you are adjusting your privacy settings on each forum. You are able to limit access to just your \"friends\" and you should make sure these people are really your friends. Limiting access is a great way to control who sees what when you are sharing information. You should also limit \"what\" you give out as personal information. Does everyone really need to know where you work, who you are married to, or what your birthdate is? If you are worried about ID theft, the less information you share the better and less chance your ID will be stolen.\nWith the increased global use of social media, comes the greater opportunities for ID theft and ID fraud to happen online. Social networking sites have the greatest potential for abuse due to the fact anyone can access them from anywhere in the world. Keep in mind the less personal information you share, the less chance you will fall victim to ID theft. Leave off sensitive personal information and only give out general information when it comes to posting activities and personal info. It is also a good practice to change passwords regularly and make sure your password is not your pet's name - which you posted on FaceBook. \nLastly, as we have recommended in other identity theft articles, pull your credit at lease once a year to make sure there is no fraudulent information on your credit. END
 TITLE: Protect Your Personal Information While Online CONTENT: How to Shield Your Online Activity and Protect Your Identity\n------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: April 19, 2017_\nWith the growth of online government surveillance and prevalence of cybercrime, people are increasingly concerned about protecting their privacy on the Internet. Fortunately, there are a number of simple things you can do to shield your online activity, all of which are legal and recommended:\n*   Hide Your IP Address\n*   Encrypt Your Email Connections\n*   Encrypt the Content of your Emails\n*   Protect Your Email Address\n*   Encrypt Instant Messages\n*   Shield Your Credit Card Number When Making Online Purchases\n*   Encrypt Your Connection With Every Website You Visit\n*   Protect Your Anonymity When Downloading From a File Hosting Site\nHow Do I Hide My I.P. Address?\n------------------------------\nAn IP address, or Internet Protocol address, is a number unique to your computer or any other connectivity device. Online activity and geographic location is most easily traced through this number, thus the importance of masking it if you are interested in online anonymity.\nThere's more than one way to shield your IP address. Take a look at your options, try one or more out, and go with the one you're most comfortably using:\n*   **Use a Proxy Server.** Your connection gets re-routed through a different server than the one you're actually on. An online search for \"free proxy servers\" should turn up plenty of options, though you may want to start with the proxy server extensions offered by whatever browser you use.\n*   **Use a VPN.** A VPN, or Virtual Private Network, connects remote sites\/users together, masking individual IP addresses. Suggestions for providers include BolehVPN, Astrill VPN, Hamachi, Private Internet Access, Witopia, and AnchorFree's Hotspot Shield or Easy-Hide-IP.\n*   **Use the Underground Internet.** TOR, or The Onion Router, is a network that utilizes hundreds of proxies to mask the identities of its users. As stated on its website, TorProject.org, the network prevents anyone from learning your location or browsing habits.\nHow Do I Encrypt My Email Connection?\n-------------------------------------\nWhen checking your email in a web browser, make sure the URL includes 'https' as opposed to 'http' (minus the 's' at the end). The 's' indicates that Secure Socket Layer (SSL) and Transport Layer Security (TLS) encryption is active. If you do not see the 's' at the end of 'http,' add it. This should work if your email provider supports SSL\/TLS encryption. (If not, think about switching providers.) So that you don't have to type an 's' into the browser every time you check your email, search the settings of your email account for a default encryption option going forward. As for desktop client email or email apps on your phone, look for encryption default options in the settings menu.\n### How Do I Encrypt the Content of My Emails?\nBeyond any encryption already built into your email provider's service, you can further encrypt by downloading PGP (Pretty Good ) software.\n### How Do I Protect My Email Address?\nFor communication with people or organizations that you don't want having your email address, you may want to try setting up a new email address used exclusively for such purposes. Keep it indefinitely or delete it after it has served its purpose.\n### How Do I Encrypt Instant Messages?\nTry TOR Chat or Cryptocat, both of which encrypt IM content.\nShield Credit Card Number When Making Online Purchases\n------------------------------------------------------\nFirst of all, only provide your credit card information to websites displaying 'https' in the web browser, an indication that that Secure Socket Layer (SSL) and Transport Layer Security (TLS) encryption is active. For added protection, however, you may want to try shopping with a virtual or single-use credit card number. Check with your bank to see if they offer such a service. If not, as of this writing, Bank of America and Citibank reportedly do.\nEncrypt Connection With Every Website You Visit\n-----------------------------------------------\nIf you use Firefox or Chrome, you can encrypt your communications with all websites by downloading **HTTPS Everywhere** software. As stated on its website: \"Many sites on the web offer some limited support for encryption over HTTPS, but make it difficult to use. For instance, they may default to unencrypted HTTP, or fill encrypted pages with links that go back to the unencrypted site. The HTTPS Everywhere extension fixes these problems by using a clever technology to rewrite requests to these sites to HTTPS.\"\nProtect Anonymity When Downloading From a File Hosting Site\n-----------------------------------------------------------\nWithout taking steps to hide it, your IP address is made visible when you download from file hosting sites. Protect yourself by using a proxy server or VPN (as explained above in how to hide your IP address). If you are using BitTorrent, BT Guard is specifically recommended.\n**Note, none of the suggestions outlined above eliminate the need for anti-virus, anti-spam, and anti-phishing software.** END
 TITLE: Protect Your Personal Information While Online CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Protect Your Personal Information While Online CONTENT:    |  |  |  | \n: . END
 TITLE: Shred Documents to Protect Yourself From ID Theft CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: April 19, 2017_\nThe only thing worse than having an out-of-control pile of receipts, statements, and other personal documents is getting rid of something you should have held on to. Or worse, not shredding something that dumpster-diving thieves use to steal your identity. Why take chances? Here's what to shred, and when.\nBanking Documents You Should Shred\n----------------------------------\n*   **Bank Statements.**  Shred monthly statements after 1 year. Hold on to annual statements related to your taxes. Or, better yet, switch to online statements. You'll receive them via email which makes for improved fraud protection, as well as quick and easy filing and accessibility.\n*   **Cancelled Checks.**  Shred immediately. Scrawling VOID across the front may prevent that particular check from being used, but it doesn't stop thieves from stealing your account and routing numbers.\n*   **ATM and Debit Card Receipts.**  Since these display only the last four digits of an account number, many people choose to simply throw them away. However, if you are more comfortable shredding them, by all means do.\nRegardless of whether you shred them or not, hold on to these receipts for up 45 days (or until after you have made sure they match up against your monthly statements). Exception: Hold on to receipts that show proof of payment for tax-related transactions.\nCredit Card Documents You Should Shred\n--------------------------------------\n*   **Credit Card Monthly Statements.** Shred after 45 days. Exception: Hold on to them if they show proof of payment for tax-related transactions. As with bank statements, you should be able to opt in to online statements\/billing.\n*   **Credit Card Receipts.** Shred after 45 days (or until after you have made sure they match up against your statements). Exception: Hold on to credit card receipts that show proof of payment for tax-related transactions.\n*   **Credit Card Offers.** Shred immediately if you do not plan on applying for the card.\n*   **Cancelled Credit and Debit Cards.** Shred immediately. If your shredder can't handle plastic, cut them into quarters and throw the pieces away in separate trash bins. Granted, they should be unusable, but some experts advise erring on the side of caution and shredding them anyway.\n*   **Credit Card Convenience Checks.** Unless you plan to use them, shred immediately.\n*   **Credit Reports.** Shred when you receive a more recent version.\nOther Documents We Recommend Shredding\n--------------------------------------\n*   **Utility and\/or Phone Bills.** Shred after the bill is paid (and you have seen proof of such via a receipt or draft from your bank account.) Exception: Hold on to them if they qualify as tax-related transactions.\n*   **Pay Stubs.** Shred after 1 year (or after making sure they match up against income reported on your W-2).\n*   **Old Tax Returns.** Shred after 7 years, or not at all.\n*   **IRS Has Three Years to Audit a Filed Return.** That is unless they suspect you have under-reported your income, in which case they have 6 years, or if they suspect you filed a fraudulent return, in which case they can audit you at any time. For this reason, many suggest holding on to your tax returns indefinitely. At the very least, you may want to hold on to your W-2s and 1099's.\n*   **Social Security Statements.** Shred when you receive an updated version.\n*   **Old Photo IDs.** Shred when expired.\n*   **Medical Documents.** Shred physician statements and receipts after 1 year. Hold on to medical histories, prescription information, and physician contact information. Don't take any chances with this one. Medical identity theft is the fastest-growing crime in America. So if you're throwing a medical document out, shred it. Otherwise, you are giving thieves access to information that could be used to obtain prescription drugs, healthcare services, or even to collect money through fraudulent claims against your health insurance policy. What's worse, it could compromise your medical history and, in turn, your health.\n*   **Insurance Documents.** Shred after the life of the policy, plus 5 years. Hold on to hospital bills and receipts, prescription information, and car repair receipts.\n*   **Retirement Plan Statements.** Shred quarterly statements after 1 year. Hold on to your annual statements until you retire.\n*   **Brokerage Statements and Investment Records.** Shred monthly statements after 1 year. Hold on to annual summaries for as long as you own the security, plus 7 years.\n*   **Mortgage Documents.** Shred 6 years after the sale of the property.\n*   **Junk Mail.** If it's addressed to \"Current Occupant,\" you can just trash it. As for junk mail addressed to you, experts advise shredding it.\nOf course, the best way of dealing with junk mail is to stop it. To opt out of credit card offers, go to optoutprescreen.com.\nTo opt out of other junk mail write: Mail Preference Service, Direct Marketing Association, P.O. Box 9008, Farmingdale, NY 11735. And call 1-800-407-1088. Include your complete name, name variations, and mailing address.\nShredding Options\n-----------------\nIf you're still using the old-school strip-cut shredder, think about switching to a cross-cut. The strip-cut shredder is less secure than the cross-cut as, theoretically, a thief could take the painstaking time to paste all of those thin strips of paper back together. Unlikely, yes. Impossible, no.\nThe cross-cut shredder is a great alternative, as it cuts paper into confetti-size pieces. Unfortunately, this does make the paper more difficult to recycle. Therefore, many people who use the cross-cut get creative with their confetti, using it in compost, as packing material, or as a fireplace starter.\nWhile all of this may seem like a lot to remember and do, the learning curve is worth it. Just remember, if it's a document you're not sure you should get rid of, hold on to it. And if it's a document you know you can throw out, but aren't sure you need to shred, shred it anyway. END
 TITLE: Shred Documents to Protect Yourself From ID Theft CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Using a Password Manager to Prevent Identity Theft CONTENT: Do You Need a Password Manager?\n-------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: April 19, 2017_\nWe already have so many accounts we’re signed up for — do we really need to throw a password manager into the mix? Well, as you might have already guessed, the more accounts you have, the _more_ you need a password manager. This is just one tool to help prevent identity theft and one of many ways you can protect yourself online. \n**Why You Need a Password Manager**\n-----------------------------------\n**1)** **You need a strong, unique password for every single account.**\nEven if you take the time to create a strong, unique password yourself, it may not be as strong as one randomly generated by a password manager.\nWhat’s worse is taking the time to create a strong password only to use it on every single one of your accounts. You can be sure that if a hacker manages to get a hold of that username\/password combo from _one_ of your accounts, they are going to try it on your other accounts, too.\nBottom line, you need a different password for every login, and all of them need to be strong. Granted, you could keep your own list of unique, hard-to-remember passwords, but that’s a lot of time spent referencing the list multiple times a day.\n**2)** **You only have to remember one master password.**\nWith a password manager, the only password you need to remember is the master you set up to login to your password manager account. Of course, your password manager still has to learn whatever credentials you already have set up. So, when you’re first getting started, you will still need to login to each account so that the password manager can store the information.\n**3)** **A password manager can generate new passwords for you.**\nIf the password manager sees weak or duplicate passwords, it can alert you that changes need to be made. The password manager can generate these changes for you, ensuring you have a strong, unique password for every single account.\n**Choosing a Password Manager**\n-------------------------------\nNot all password managers are created equal. Fortunately, _PC Magazine_ reviewed the best password managers of 2016.\n**_Free password managers_**\nLastPass looks to be the best way to go, with a perfect five-star rating. LogMeOnce Password Management Suite comes in a close second. The only thing on _PC Magazine_’s list that LastPass and LogMeOnce don’t do is store application passwords.\n**_Paid password managers_**\nLastPass ranks highest on this list, too, with another five-star rating. In this case, what you’re paying for is to store the application passwords that the free version does not do. Dashlane gets five stars, too, but does not cover application passwords or have a portable edition.\n**The Security of Password Managers**\n-------------------------------------\nAs secure as password managers may be, they are not immune to hacks. We learned that when the top-rated LastPass was hacked in 2015. While stored passwords for other sites were not breached, master passwords were stolen, as well as emails and other data.\nIn response to the breach, LastPass encouraged customers to use its multifactor authentication feature.\nAs stated on the LastPass website:\n\"Multifactor authentication refers to a device that can be enabled for use with your LastPass account, and requires a second step before you can gain access to your account. Multifactor authentication devices help protect your account from keyloggers and other threats – even if your Master Password were captured, someone would be unable to gain access to your account without this second form of authentication.\"\nFor instance, if you have multifactor authentication set up on your cell phone, then every time you login to your LastPass account, your phone receives a notification. You have to click the button on your phone or you can’t login to LastPass at all. Should you lose your phone, then you can disable the multifactor authentication, which requires verification through email.\nDashlane and LogMeOnce also offer multifactor authentication, as do most other passwords managers. END
 TITLE: Early Warning Services LLC Prevents Financial Fraud CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: July 12, 2010_\nEarly Warning Services,LLC was formed to help eliminate fraud in the financial systems. The roots of this company were formed over 20 years ago and is currently owned by Bank of America, JPMorgan Chase, and Wells Fargo. This bank ownership offers openness and sharing of information between these institutions to help fight fraud.\nEarly Warning Services is based in Scottsdale, Arizona. Employees might be described as playing a role of \"risk detectives,\" seeking to keep their clients (banks, brokerages, credit unions) from losing money in ID theft scams or bad checks. According to their website, employees use collective knowledge and best practices in fraud management from leading financial services organizations to fight identity, deposit, and payment fraud. This intelligence is delivered through a suite of Early Warning fraud solutions, and may result in billions of dollars in annual loss avoidance.\nAccording to Paul W. Finch, Early Warning Services chief executive officer, the company estimates it is saving it's financial services clients more than $1 billion annually in fraud losses. Their website, www.early-warning.com, indicates that in 2006 they have screened 42.3 million identities and processed over 2.1 billion inquires. According to Finch, banks want to be more open with each other about the internal and external frauds they face. By joining forces, openness in information sharing is facilitated, and efforts to thwart frauds are more quickly recognized. As fraud continues to reach new levels of sophistication, the speed which current and accurate information is integrated in the processes that detect, prevent and deter fraud becomes critical.\nThe financial service industries that might benefit as Early Warning Services clientele would include financial institutions (retail banks\/savings and loans\/thrifts), brokerages, mutual fund companies, credit card issuers, check acceptance companies and others. Early Warning Systems has specific solutions that are tailored for each industry, but in general attempts of fraud will fall into one of three categories; deposit, payment, and identity fraud.\nEarly Warning Services promises to provide solutions to prevent each of these three fraud methods using a database provided by \"various organizations\" which shares their most current information on accounts, transactions, and identities. The following are the four major \"Solutions\" or programs that they offer clients:\n1.  **DEPOSIT CHEK:**  For physical and online items presented for deposit or payment at financial institutions. Performs validation and status verification of the payer's checking account. Responses help detect fraud, prevent losses and expedite funds availability decisions.\n2.  **IDENTITY CHEK:**  Distinguishes high-risk individuals from profitable customers with the end goal of opening more \"good\" accounts and reducing costly write-offs. This service identifies applicants with a prior history of fraud and\/or account abuse while also performing identity verification and compliance list screening.\n3.  **PAYMENT CHEK:**  Identifies high-risk credit card remittance payments made from checking accounts. For both physical and online items, this service validates an account's existence, reports it's status and whether the payer's name, address and other elements match the account.\n4.  **INTERNAL FRAUD PREVENTION SERVICE:**  Available to financial services organizations, it provides notification of job applicants and employees that have been released by another institution because they knowingly caused or attempted to cause financial loss.\n### What Does This Mean to Consumers?\nWell, provided the data in their system for an individual consumer is accurate, this seems a positive (for responsible individuals without negatives in their past financial account history). If it helps them save money, perhaps it will be passed on to us as consumers somewhere down the road. Ownership and control of this company by the banks themselves will no doubt encourage sharing of information for fraud control, bridge some of the competition gaps and perhaps ultimately reduce costs for all consumers.... END
 TITLE: Early Warning Services LLC Prevents Financial Fraud CONTENT:    |  |  |  | \n: . END
 TITLE: How to Remove Fraudulent Accounts Opened in Your Name CONTENT: How to Remove Fraudulent Accounts Found on Your Credit Reports\n--------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: April 19, 2017_\nAs we all move toward doing just about all of our financial transactions over the Internet, the incidence of identity fraud is increasing. We have all heard the news stories of hackers gaining access to customer data information from big companies such as Target and HomeDepot. We have also heard reports about how a person's information was hacked from their personal computer. Unauthorized access to our personal information leads to identity theft and identity fraud. Once a thief has a few pieces of your personal information, he or she can then open credit accounts in your name. This is a sure fire way to trash your credit and lower your credit score. In this article, we will talk about how to remove any fraudulent accounts that might have been opened in your name and how to repair your credit.\nMonitoring Your Credit Is the First Line of Defense\n---------------------------------------------------\nYou may never know, or you may find out way too late, that someone has stolen your personal information and opened credit accounts in your name. The only way you will find this out is if you monitor your credit very carefully. Continuous monitoring of your credit files will immediately alert you to any identity fraud. Here are two ways to keep a close eye on your credit:\n1.  Pull your credit reports once a year and review everything with a fine tooth comb. Look for any unauthorized credit inquiries, recently opened credit accounts, or incorrect personal information. You are able to get your credit reports for free once a year from AnnualCreditReport.com.\n2.  Sign up for a credit monitoring service. This requires a monthly fee to keep it going but they will immediately send you a notification if any accounts or inquiries are posted to any of your credit files. We have put together an article summarizing all of the most popular credit monitoring offers.\nSteps to Take if a Fraudulent Account Had Been Opened in Your Name\n------------------------------------------------------------------\nIf an imposter has opened fraudulent credit accounts in your name, you will want to act fast to protect your identity and your credit. First, you need to immediately place a 90-day fraud alert on your credit file. This can be done by calling one of the three major credit reporting agencies and inform them that a thief has compromised your credit accounts. Our article Placing a Security Freeze on Your Credit File will give you more information on how to do this.  Once you contact one of the bureaus, they will contact the others and notify them of the fraud alert.\nHaving this fraud alert in place tells lenders to take extra steps to verify that you are the one who is seeking the request for new credit. It also entitles you to receive a free copy of your credit report from each of the three major credit reporting agencies. Again, review these reports carefully making sure to note any and all accounts that you do not recognize as your own.\nNext step is to file a complaint with the Federal Trade Commission (FTC). Print off a copy of the complaint and use it to file a police report with your local law enforcement agency. Additional information on doing this can be found in our article What to Do if You are a Victim of Identity Theft.\nThis next step is probably the most time consuming but is the most important — dispute all fraudulent accounts found in your credit file. Contact the financial company where the thief has opened the account and talk to their fraud department. Inform them you are a victim of identity theft and follow-up the conversation with a certified letter. Be sure to ask them if there is any paperwork you need to fill out for them, and if so, keep copies of all correspondence for your records.\nYou will also need to send a dispute letter to each of the credit reporting agencies informing them of the fraudulent accounts opened in your name. Request that the fraudulent accounts be removed from your credit file. It is a good idea to send all of these dispute letters certified mail with a return receipt and keep copies of all letters for your records. The credit reporting agencies have 30 days to investigate your dispute. If these bogus accounts are not removed after the first round of letters, keep sending the dispute letters until the accounts have been completely removed. Since this process may take a few months, you might need to place a second 90-day fraud alert on your credit files.\nMonitoring your credit scores is another good way to catch identity fraud. If you monitor your scores regularly and you notice a large, unexpected change, it is time to pull your credit reports. Chances are you will find some unauthorized activity in your credit files and you will need to act quickly. Keeping a constant watch on your credit reports and scores will notify you of any fraud and will give you the opportunity to act quickly and repair your damaged credit. END
 TITLE: Steps to Take If You Are a Victim of Identity Theft CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: April 19, 2017_\nA recent survey from Bankrate.com found that 41 million Americans had been victims of identity theft in 2015, which equates to about two in five people who were victims. Knowing that sobering fact should make you even more alert to the potential of it happening to you, if it has not happened to you already.\nIt is important that you act quickly if you suspect you are a victim of identity fraud. In addition to reporting your identity theft to the following agencies, you may want to start a log of your efforts to protect yourself. This information could prove invaluable later in proving you are not responsible for false debts or even crimes associated with the identity theft. You may also want to read this article, The Tale of a Waylaid Wallet. Below are some suggested courses of action you should follow if you are a victim of identity theft.\nContact the Authorities\n-----------------------\nReport the crime to all police and sheriff's departments with jurisdiction in your case. Credit card companies and banks may require you to show the report in order to convince them of your innocence, and if they don't believe you, they may hold you responsible for bounced checks, charges made in your name, etc. If you can get it, it is an important piece of documentation.\nGive the police\/sheriff's department as much documented evidence as possible, and get a copy of your police report. Make sure to take note of your detective's (or the official taking the report\/handling your case)'s direct phone number. It will make it easier for creditors\/banks to carry out their own investigation.\nSome police departments have been known to refuse to write reports on such crimes. In a report issued by the FTC based on the identity theft hotline it set up (see below), the police took reports in 67 percent of the cases. If you can't get them to take a report, at least document your call and who you spoke with.\n**The FTC's Identity Theft Toll-Free Hotline:  1-877-IDTHEFT or 877.438.4338.**\nPull Your Credit Reports\n------------------------\nIn most cases, it is difficult to obtain a mortgage or car loan using someone else's identity, typically the thieves go for credit cards. Pull your credit report immediately to make sure no one has opened up new accounts in your name. Be aware, though that new accounts may not show up for quite a while (6 months or more), so be sure and check frequently for the first year. It might be a good idea to sign up for a credit monitoring program such as one of these listed.\nIf accounts have been opened up in your name, contact the creditors immediately with whom your name has been used fraudulently. Credit card companies have whole departments which handle nothing but fraud.\nPlace a Fraud Alert on Your Credit Reports\n------------------------------------------\nImmediately call and\/or write the the three credit reporting agencies (CRAs) listed below. Report the theft of your credit cards or account numbers, and ask to have your account flagged with a fraud alert. Typically, fraud alerts remain on your credit report for two years, and will prevent anyone (including yourself) from opening accounts without additional verification.\nToll-Free Report Fraud Hotlines:\n*   Experian: 1-888-EXPERIAN (888-397-3742)\n*   Equifax: 1-800-525-6285\n*   TransUnion: 1-800-680-7289\nIf your credit report has already been damaged (inquiries you did not make, accounts you did not open have been placed on your report), go through the normal credit repair procedures to have these items removed. Point out that you have already placed a fraud alert on your report to strengthen your case. For items you cannot immediately remove, you may want to ask the credit bureaus to change the status of disputed accounts to \"disputed.\"\nCall Your Creditors\n-------------------\nIf your credit cards have been stolen, it's important that you act quickly to prevent as much responsibility for fraudulent charges as possible. Call your creditors on the phone and follow up your call with the facts in writing. Most creditors will issue replacement cards with new account numbers for your own accounts that have been used fraudulently with no trouble, if you act immediately. If fraudulent charges have been made to your accounts, at the very most you will be responsible for no more than 50 dollars.\n**Important Note:**  Ask that old accounts be processed as \"account closed at consumer's request.\" This is better than \"card lost or stolen\" because when this statement is reported to credit bureaus, it can be interpreted as blaming you for the loss. \nFinally, carefully monitor your mail and credit card bills for evidence of new fraudulent activity, in case your thief comes back to haunt you.\nNotify Your Banks\n-----------------\nIf you have had your ATM card, bank checks stolen or bank accounts set up fraudulently, close your accounts immediately. It is also wise to report it to any of the the following check verification companies your bank uses. **Don't** rely on them to do this.\nCheckRite: 1-800-766-2748  \nChexSystems: 1-800-428-9623 (closed checking accounts)  \nCrossCheck: 1-800-552-1900  \nEquifax: 1-800-437-5120  \nNational Processing Co. (NPC): 1-800-526-5380  \nSCAN: 1-800-262-7771  \nTeleCheck: 1-800-710-9898\nMost banks use ChexSystems, and you may want to have an in-depth conversation with your bank about anything it may have reported to ChexSystems. Any negative items reported to ChexSystems will prevent you from opening up a checking account anywhere else for 5 years. If your bank has reported anything to ChexSystems as a result of your identity fraud, insist that it remove the listing immediately.\nAs a further stop-gap measure, put stop payments on any outstanding checks that you are unsure of, although this can cost you a pretty penny ($15\/check or more). Give the bank a secret password for your account _other_ than mother's maiden name (this is an easy piece of information for a thief to obtain).\nFraudulent Change of Address\n----------------------------\nNotify the local Postal Inspector if you suspect an identity thief has filed a change of your address with the post office or has used the mail to commit credit or bank fraud.  To obtain the phone number of your local Postmaster, call 1-800-275-8777. To find out where fraudulent credit cards were sent, notify the local Postmaster for that address to forward all mail in your name to your own address. You may also need to talk with your mail carrier.\nCall the Social Security Administration\n---------------------------------------\nIf your Social Security number has been misused, call the Social Security Administration (SSA) to report fraudulent use of your Social Security number. As a last resort, you might want to try to change your number. Because of the many people trying to escape their bad credit by getting a new SSN, the SSA will only change your number if you fit their fraud victim criteria.\nYou may also be facing the possibility that someone is using your SSN number for employment to avoid paying taxes. To ensure this is not happening, you may order a copy of your Earnings and Benefits Statement and check it for accuracy.\nWeb: ssa.gov  \nPhone: 1-800-772-1213\nNotify the Passport Office\n--------------------------\nIf you have a passport, notify the passport office in writing to be on the lookout for anyone ordering a new passport fraudulently. (Web: U.S. Passports & International Travel)\nCheck if Your Driver's License Number Has Been Misused\n------------------------------------------------------\nYou may need to change your driver's license number if someone is using yours as identification on bad checks. Call the state office of the Department of Motor Vehicles (DMV) to see if another license was issued in your name. Put a fraud alert on your license. Go to your local DMV to request a new number. Also, fill out the DMV's complaint form to begin the fraud investigation process. Send supporting documents with the completed form to the nearest DMV investigation office. END
 TITLE: Signature Loans Are A Great Alternative to Credit Cards CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: October 16, 2017_\nA signature loan is a loan to which no collateral is needed and it simply requires your signature as a guarantee that you will repay the loan. Because this type of loan requires no collateral to back it up, it is referred to as an unsecured loan.\nSignature loans can help you reach your goals and bring you the finer things in life. In fact, even if you have bad credit, you can still obtain a personal loan to get the things that you want. Signature loans can help you avoid exorbitant credit card fees, overdrawn checking accounts, and costly interest fees. They can even help you rebuild your credit. The credit scoring model gives favorable heavy weight to timely payments made on a signature loan.\nWhere Can You Get a Signature Loan?\n-----------------------------------\nThe first place to shop for signature loan is where you normally bank. If you have a relationship with your bank or credit union, you might find they have exceptional values as far as fees and interest rates. Absolutely do not consider a payday loan — the fees on these types of loans can range up to 450 APR. Signature loans allow consumers to spread the payments out over the course of several years.\nHow Do Signature Loans Work?\n----------------------------\nA personal installment loan or signature loan works just like an auto loan or mortgage. The borrower makes regular monthly payments, equal in value, to repay the loan. Just like a mortgage, with each additional payment, the principal balance of the loan decreases and the amount of interest due that year decreases as well. The amount of interest paid throughout the course of the year is defined in the APR or annual percentage rate.\nAsk questions when applying for your loan. In some cases, automatic payment might reduce the interest rate that you are charged on the balance of the loan. Paying the loan off early or making extra payments is always a good idea and can dramatically decrease the amount of interest overall.\nEven if you have a good relationship with your bank or credit union, some restrictions might apply in order to obtain a signature loan such as you might need to have a good credit rating or a credit score above 450. Typically, a minimum amount must be borrowed up to a maximum cap on the borrowed amount.\nAfter You Get the Loan\n----------------------\nMost signature loans feature a coupon book for payments that will be mailed in while those that are set up for automatic withdrawal from a checking account do not. In most cases, loans of this type require a monthly payment that remains the same throughout the entire term of the loan. This still requires effort on your part to remember the payment and mail the check. For the ultimate lazy man's way, online banking not only saves you the cost of a stamp, but you can have the money automatically drawn from your account.\nIn summary, personal signature loans beat credit cards, store financing and payday loans as the means to get that new shiny toy you are desperate to have. You need to make sure, of course, that you can afford it, as the terms are anywhere from 3 to 5 years. END
 TITLE: Waylaid Wallet Tale of a Stolen Credit Card CONTENT: The Woeful Tale of a Waylaid Wallet\n-----------------------------------\n###### Written by: Kristy Welsh\n_**Things to think about before you lose yours.**_  \nby Maureen Rooney\nI can't say for sure whether my wallet was lost or stolen. All I do know for certain is that whoever \"found it\" helped themselves to the contents.\nThis tale begins with an early morning call from my credit card company. It continues through a week of my life, calling and visiting everyone remotely related to the contents of my wallet. It starts like this:\n\"Ms. Rooney? This is Julio from MBNA fraud detection. Did you buy gas with your credit card last night?\"\n\"Huh?\" I responded brilliantly, not fully awake yet.\n\"You don't normally buy gas on your Visa. I'm calling to make sure you have it in your possession.\"\nI mumbled something, hopefully \"Hold on a minute,\" and went in search of my purse.\n\"My wallet is missing,\" I told Julio, as I began a mental inventory of its contents:\n*   Credit cards (one Visa; one MasterCard)\n*   Debit card\n*   Driver's license\n*   Health insurance card\n*   Library card\n*   About 50 dollars in cash and a phone card (kissed goodbye)\n**Cancel your credit cards.**  \nApparently, it is not uncommon for credit card thieves to try a stolen (or found) card at a gas pump to see if it is active, so the fraud detection folks watch for that. I last had my wallet in my hands at 7:00 pm and just 12 hours later, I was chatting with Julio. Fraud detection has gotten good.\nJulio ran through recent charges with me, identifying the last one that was mine, and then closed my Visa account. I asked him to check my MasterCard (also with the same company) and he found a gas charge on that one, too. He closed it.\nI only carry two credit cards in my wallet. My department store cards are filed safely away until I need them. I recommend you do the same. The fewer cards you have in your wallet, the fewer you'll need to cancel and reopen should you encounter a thief.\nJulio told me that my new cards would arrive in 5 days and recommended that I add password protection to the accounts. (The password would replace the standard mother's-maiden-name since a thief with a few research skills could uncover that with just a bit of patience.)\n\"What else was in your wallet?\" Julio asked me.\n**Shut down your debit card as soon as possible.**  \nI live on my debit card, so canceling my card was going to be a major inconvenience, I thought. But my credit union was great. When I called to tell them the card was stolen, they closed it, and told me that I could come into the branch office and get an immediate replacement. I let out a sigh of relief.\nThey checked for the last transaction. Luckily, it was mine. If it hadn't been, I would have been liable for the first $50 of the fraud spree as long as I reported it missing within 48 hours. Don't delay in reporting a missing debit card or the stakes get higher. It could also be a nightmare to get your account back in order if your thief has enough time to shop until he's debited your account balance down to zero.\nI asked to have password protection added to all bank accounts, including my new debit card, replacing my mother's maiden name with a word that no thief would be able to find. (Don't use the last 4 numbers of your social security number, your phone number, your birthday, or anything else that might be obvious to a thief.)\n**Put a fraud alert on your credit files.**  \nJulio recommended that I place a fraud alert with the three credit reporting agencies. Since the new FACT Act went into effect this year, it has gotten easier to do this. The Federal Trade Commission offers helpful step-by-step information by phone or online:\nFTC ID Theft toll free Hotline: 1-877-438-4338\nI called the first Credit Reporting Agency (CRA) on the list of numbers Julio provided. By calling any one of the CRAs and providing your SS number, date of birth, street address, zip code and home phone number, you can place an immediate alert on all your credit files. The one you call will share the report with all the others.\nCRA toll-free 24-hour fraud assistance hotlines:\nEquifax 1-800-525-6285  \nExperian 1-888-397-3742  \nTrans Union 1-800-680-7289\nA fraud alert makes it harder for thieves in possession of your personal information to open new credit in your name. New credit won't be granted until the creditor calls the number you provide to verify that it's really you opening accounts. This will make it a bit harder for you to open new credit on the spot, too (but that's not entirely a bad thing. If the urge to impulsively open new credit strikes, it will be squelched by the fraud alert. And by the time you get home to confirm by phone, perhaps the urge will have passed!)\nAll three CRAs will send free credit reports when you place an alert on your file so you can check to see that nothing unseemly has already transpired. (Mine were in my mailbox just 5 days later.) It is recommended that you pull your reports every three months for a year, then once a year in the future. Why? Because accounts may take a while to appear on your reports. And smart thieves will file your information away for a while, then use it in the future to open fraudulent accounts once you've forgotten all about it.\n**File a police report**  \nIt's wise to report the theft to your local police and get a copy of the police report, Julio advised. Hopefully, you'll never need it. But it will make it easier to prove that future credit card charges are not your liability should your thief decide to use your identity in the future.\n**Your driver's license**  \nNot long ago, Arizona used my Social Security number as my driver's license number. When they offered the option to use a different number, I jumped on it. If your driver's license includes your SS number (in addition to your birthday and address), a thief has everything he needs to help himself to your credit.\nIf your state still uses SSNs as the drivers license number, ask for a different number. If the clerk says no, ask for a supervisor. Sometimes the first person you talk to just answers by rote. If the answer is still no, Xerox your diver's license, black out the SSN, and carry the copy. Leave your original filed away in a safe place.\n**Your Social Security card**  \nI assured Julio that my social security number wasn't in my wallet. \"Good,\" he said, \"You should never carry your Social Security card in your wallet.\" A Social Security number makes it easier for a thief to apply for credit or otherwise fraudulently use your identity. My Social Security card has never been in my wallet, but my number-I now realize-was in my wallet. In several places.\n**Health insurance cards**  \nIf your health insurance plan uses your Social Security number as a member ID number, it's probably on your insurance card. Mine, unfortunately, was. When I called to get a replacement card, the representative was stumped by my request for a different ID number. She couldn't even fathom why I might care.\nCalifornia, as is often the case, is leading the way with a recently enacted law barring health care providers from requiring SSNs for access to products or services, from printing SSNs on cards, or from printing SSN on any materials that are mailed. In April 2004, Arizona passed new legislation (HB 2116 and HB 2382) that will similarly restrict the use of SSNs for all Arizonans beginning January 1, 2005 \"on any card required for the individual to receive products and services.\" I had to point this out to my membership rep before she would send me the necessary form to request a different number. Be patient and persistent.\nIn the meantime, if you are unable to get your insurance plan to change your number, photocopy your card, black out your SSN, and carry the copy. You can then give a health care provider your number separately.\n**Student IDs**  \nI haven't been a student in years, but I clearly remember how often I had to provide my Social Security number when I was in school. Back then, it served as the ID number on my student ID card. Before my freshman year was out, my SSN was indelibly etched in my memory.\nThe state of New York already limits the use of SSNs in schools and colleges. Arizona legislation now provides similar protections in this state. If your school prints your SSN on your student ID or posts grades by SSN, get vocal, and get that practice changed. It's a bad practice that makes you a mark for opportunistic identity thieves.\nI didn't have a student ID in my wayward wallet, but I did have a \"guest library card\" from my alma mater. It never even occurred to me that my library card was emblazoned with my SSN.\n**Library cards**  \nMy replacement \"guest library card\" from the university will not have my Social Security number on it, thanks to new Arizona legislation. If yours does, ask for one that doesn't.\nClose your library card account. Heaven forbid your clever thief checks out expensive art books on your card to sell at the swap meet. This does happen, according to my librarian, although it is more often CDs, DVDs and videotapes that go missing from the library shelves this way.\n**Be smart. Take precautions.**  \nIf you don't have a passport filed safely away somewhere, make a copy of your drivers license to keep in your secured files. You will need photo ID to replace your missing drivers license, debit cards, etc.\nGuard your personal information jealously. If anyone asks for your social security number, say you'd prefer not to give it. Oftentimes, that is a good enough answer. In addition, many credit cards and the new passports issued by the US this year (2008) will contain an RFID (radio frequency ID) chip, making it easy for a thief to steal your info without laying hands on your wallet. For more info, read this post on RFID chips.\nSome businesses (health insurance and auto insurance, to name just two) will not do anything for you without your SSN. To get their coverage, you have to provide it. But ask them not to use it on membership cards and not to print it on anything they mail to you.\nIf you suspect someone is fraudulently using your Social Security number, call the Federal Trade Commission's Identity Theft Hotline toll-free at 1-877-IDTHEFT (438-4338) or go online to the FTC Web site and fill out an identity theft affidavit.\nI sincerely hope your wallet never goes wandering like mine did. But on the off chance that it could, be smart about the information you will be sharing with your thieves. END
 TITLE: Unsecured Loans - Personal Loans Do Not Need Collateral CONTENT: Unsecured Personal Loan — Make Sure to Read the Fine Print\n----------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 11, 2017_\nAre you thinking about making a large purchase in the near future but don't have the cash on hand to pay for it all up front? Then, think about taking out an unsecured loan from one of your local banks or credit unions. Unsecured personal loans allow you to borrow money for almost any purpose.\nAn unsecured loan is a loan that is not backed by collateral. These loans are also referred to as personal loans or signature loans. An unsecured loans is based solely on the borrower's credit rating, so as a result, they are much more difficult to obtain than a secured loan. But, before you get an unsecured loan, make sure you understand how they work and what the alternatives are.\nTypes of Unsecured Loans\n------------------------\nThere are several types of unsecured personal loans available, each one has it's pros and cons. It is best to pick the one the best meets your needs while minimizing cost to you.\n*   **Signature Loans** — This is most basis type of unsecured loan and they are secured by nothing other than your signature. You can use this type of loan for just about anything and they are available at banks and credit unions. If you have good credit, you will get a relatively low interest rate. If you have bad credit, this type of loan will help you rebuild your credit.\n*   **Credit Cards** — Credit cards are another way to borrow money. Credit cards may be easy to get but make sure to look at the interest rate before you sign up - you could pay as much at 24% if you have bad credit. Looks for low interest cards and ones with no annual fees.\n*   **Student Loans** — Another unsecured loan is a student loan which is designed to fund your education. Look for features such as flexible repayment options, grace periods, and subsidies. The only hitch with this type of loan is that you have to be a student.\nWhat to Look For When Shopping for an Unsecured Loan\n----------------------------------------------------\nIf you are currently shopping for an unsecured personal loan, you should know that other than the interest rates, you should also be looking into the documents you will have to sign when you finally get your loan. Most contracts for unsecured loans contain provisions in small print that many borrowers take for granted and do not bother to read at all. Learn what you should be looking for in the small print provisions and do review the loan documents while you're still shopping and not when you're ready to sign them before the loan release. This way, you can be assured that you're getting the best possible terms for your loan. Lenders usually include in the small print their provisions covering loan insurance, penalties on prepayments, and adjustments on APR (annual percentage rate).\n### Penalties on Prepayment\nThe means the lender will charge you a fee if you pay off your loan before the agreed term. While this is not especially common for unsecured loans, it is a requirement on secured mortgage loans. The fee is basically a penalty for your prepayment and is meant to compensate the lender for the additional interest income it would have earned had you kept the loan outstanding until the agreed term.\nSome lenders may not be clear about their policy on prepayment but try to look for it in the small print section of the loan contract. You can always look for a loan provider that does not charge prepayment penalties or at least go with the lender that charges the least in penalties.\n### APR Adjustments\nAnother common policy in small print is the adjustment on APR. This type of loan was dubbed a \"sub prime\" loan in the mortgage industry and is one of reasons the housing market blew up.\nMany lenders advertise a certain APR but this is usually given only to highly favored customers. So if your credit is less than perfect, expect a higher APR for your loan and any adjustments on your interest rate are customarily written in small print. By law, lenders are required to inform borrowers about their APR before signing any loan documents and by practice, lenders do so by putting them down in the small print section of the contract. Your signature on the same document signifies your knowledge of the APR you will have to pay. Therefore, you must read the small print to know how much they are charging you.\n### Loan Insurance\nLoan insurance is not common on unsecured personal loans, but it does occur. In rare occasion lenders require loan insurance to cover your payments in case you cannot pay your loan because of injury or loss of employment. The insurance premiums are usually added to the loan payments you have to make.\nThere is no doubt that loan insurance will help protect your credit in case of adverse developments but you need to be concerned about its added costs to you. Know that lenders and the insurance company they endorse are normally affiliated and the insurance they're tacking in your loan is usually not the best offer you can get. Know also that you are not required to buy your insurance through the lender. You can shop around so you can get the best loan insurance deal you can find. However, you should shop for your insurance before getting your loan so you won't be forced to accept the lender's insurance when the time comes.\nThe only way you can avoid the usual small print tricks lenders use on unsecured personal loans is by asking lenders for a copy of their loan contract when you're still shopping. It should not be a problem for lenders to provide you with a copy of their standard contract. Do remember that the APR a lender will charge you is not going to be in the contract yet. You will get that information before you sign the document but at least, you'd know where to look for it. END
 TITLE: Information on Peer-to-Peer Lending and P2P Loans CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: October 5, 2017_\nAre you in the market for a personal loan but having trouble qualifying through a traditional bank? Are you an investor looking for an alternative to traditional investments? If so, it’s worth looking into peer-to-peer-lending. Find out what it is, how it works, and whether it’s right for you.\nWhat is Peer-to-Peer Lending?\n-----------------------------\nPeer-to-peer lending is pretty much what it sounds like — individuals (investors) lending money to individuals (borrowers). There is no brick-and-mortar bank involved. Instead, the middleman is an online platform that matches investors with borrowers. The same platform services the loans, too.\nPeer-to-peer lending is also known as person-to-person lending or P2P.\n**What Are the Peer-to-Peer Lending Platforms?**\n------------------------------------------------\nLending Club and Prosper are by far the two leaders in the peer-to-peering lending marketplace.\nLending Club finances both personal and business loans. Prosper only finances personal loans, but you can use the money for business expenses.\n**What Can Borrowers Finance Through Peer-to-Peer Lending?**\n------------------------------------------------------------\nYou can finance pretty much anything. For instance, Prosper’s drop-down menu of loan purposes includes debt consolidation, home improvement, medical\/dental, business \\[expenses\\], large purchase, household expenses, auto\/motorcycle\/RV\/boat, taxes, baby & adoption, other. (They also list special occasion and vacation, but those aren’t purposes for which we recommend taking on debt; save up for those instead.)\n### **How Much Can Borrowers Finance Through Peer-to-Peer Lending?**\nIt depends on the platform. For instance, Prosper offers personal loans from $2,000 to $35,000. Lending Club offers personal loans from $1,000 to $40,000 and business loans from $5,000 to $300,000.\n### **What Fees Are Involved With a Peer-to-Peer Loan?**\nBoth Lending Club and Prosper charge borrowers interest fees and origination fees that vary depending on credit rating and length of the loan.\n### **How Long Do I Have to Pay Back a Peer-to-Peer Loan?**\nLoan terms for personal loans through Lending Club and Prosper are 3 or 5 years. Loan terms for business loans through Lending Club are 1 to 5 years.\n**What Are the Benefits of Peer-to-Peer Lending?**\n--------------------------------------------------\n### **Benefits for Borrowers**\n*   Application and approval process is fast and easy – apply online, receive an answer within minutes, and receive funding (if qualified) within days.\n*   May be easier to get approved for a loan than through the traditional banking systems.\n*   If the platform reports payment history to the credit bureaus, borrower is able to build good credit.\n*   The same consumer protection laws apply as through traditional banking systems.\n### **Benefits for Lenders**\n*   Lenders can choose the loans they want to finance.\n*   A lender is able to earn interest higher than what can be earned through other types of traditional investments, like savings accounts and CDs.\n*   Risk-adjusted returns, as investors can spread their investment over a number of different loans.\n### **What Are the Drawbacks of Peer-to-Peer Lending?**\nSince peer-to-peer loans can be easier to get than traditional loans, borrowers may be tempted to take on debt they don’t really need or can’t afford. Borrowers will also be charged a loan origination fee as high as 5 percent.\n**What’s the Difference Between Peer-to-Peer Lending and Crowdfunding?**\n------------------------------------------------------------------------\nPeer-to-lending is a loan that must be paid back in its entirety, plus interest. Crowdfunding is donations that do not need to be paid back. That said, crowdfunding may require recipients to provide something to donors\/investors in return for donations, like shares of their business or rewards\/prizes.\n### **How Do Borrowers Qualify For Peer-to-Peer Loans?**\nSpecifics depend on the platform but, in general, a number of factors determine eligibility, including credit score, income, and debt-to-income ratio.\n### **What if a Borrower Defaults on Their Peer-to-Peer Loan?**\nAs with traditional loans, peer-to-peer loans in default enter into the collection process, which is handled by the lending platform (e.g., Lending Club, Prosper).\n**Learn about consumer protection in the peer-to-peer lending market.** END
 TITLE: Advantages to Using a Personal Loan CONTENT: Advantage of Using a Personal Loan to Pay Down Debt\n---------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 1, 2017_\nWhen you are knee deep in debt, you are always looking for ways to pay off or pay down those high interest credit cards or high interest loans. If you have a credit card or loan that has an interest rate of 25 percent or more, it seems that the balance due never seems to go down — no matter how much you pay each month. But what if you wanted to make a large purchase or go on a vacation, where will you get the money to pay for such an expense? Not on that maxed out credit card — that's for sure! How about getting a personal loan or a line of credit. Here are some advantages to using this type of financial tool. \nPersonal Loans Are Flexible\n---------------------------\nPersonal loans are usually multipurpose, unlike a car, home or student loan which can only be used for one purpose. You can use a personal loan for travel, medical expenses, home remodeling, or financing your wedding. There may be some lending institutions which require you to specify what you are using the money for so it is important to read the information very carefully. \nFast Money with a Personal Loan\n-------------------------------\nDepending on where you go to apply for your personal loan, sometimes you can get the money you need the same day you fill out your application. Because getting a personal loan can usually happen pretty quickly, the faster you can make payments on debts you might be late in paying.\nCompetitive Rates and Low Monthly Payments\n------------------------------------------\nDifferent lenders offer different rates for personal loans, so shop around to get the best deal. If you have a bank with which you already have a relationship, go to them first as they may offer you the best deal. Credit unions or local banks are usually the best place to get this type of loan. Along with a good rate, some banks may offer variable or fixed rate so make sure the rate you choose does not leave you with payments higher than you can afford.\nAnother advantage of using a personal loan to pay off other debts is the lower monthly payment. Not only are you paying off a high interest debt, but your monthly payment will be lower which frees up some cash for you each month. Instead of being strapped each month to make sure you can make ends meet, you will have a little bit of extra money left over which can be put into an investment account.\nLittle to No Collateral Needed For a Personal Loan\n--------------------------------------------------\nA personal loan does not usually require as much documentation, like a mortgage or a car loan, which makes the processing time of this loan much quicker. You also don't typically need any collateral or security to put against the loan.\nWe think this goes without saying, but we will say it anyway, anytime you are borrowing money it is important to make sure you are making a good financial decision based on your current situation and goals. It is also important to make sure your monthly payment will be affordable and you don't take on more debt than you need. While taking on a personal loan can help you build your overall wealth, it is a good idea to weigh in whether or not you will be getting your money's worth and you aren't paying too much in interest. END
 TITLE: Everything You Need to Know About Payday Loans CONTENT: Payday Loans — Predatory Lending, Payday Advances, Cash Advance\n---------------------------------------------------------------\n###### Written by: Kristy Welsh\nBeware of Payday Loans\n----------------------\nIn recent years, it seems as though there is a \"Check Cashing\" or \"Payday Loan\" outlet springing up on every street corner. These predatory lending outlets tend to cluster in low-income neighborhoods, their billboards exclaiming, \"Get fast cash until payday!\". There are ads on television, the internet, radio, newspaper, bulk mailers... everywhere we turn we see this seemingly fantastic offer to provide us with modest amounts of quick cash that will carry us over until our next paycheck arrives. Another disturbing trend involves utility companies, many of which are turning to these retail outlets to take payments for them: click here to read more about this.\n### What is a Payday Loan?\nPayday Loans are small-dollar, short-term, unsecured loans that the borrower commits to repay out of their next paycheck. These loans are made by storefront lenders, check cashers, pawn shops, even on the internet. The borrower is given cash in exchange for a personal check, which is held for future deposit by the lender. Known also as deferred deposit advances, check or cash advance loans, or post-dated check loans, they have become an incredibly popular method for consumers to obtain quick cash.\nTypical loans are for amounts ranging from $300-$700, due on the borrower's next payday, at a cost of $15 to $30 per $100 loaned. This equates to in incredibly outrageous interest rate: 390 to 780 percent annual percentage rate (APR)! Under the Truth in Lending Act, the cost of payday loans (like other types of credit) MUST be disclosed to you in writing (this includes the dollar amount of the finance charge and the APR). So, one might ask, who in their right mind would knowingly agree to a fee this high?\n### How Payday Lending Works\nAll a consumer needs to qualify for a payday loan is a source of income and bank account. The borrower then writes a personal check payable to the lender for the amount desired, plus the 15-30% fee. The check will be held for one to four weeks, until the borrower's next payday. At that time the borrower may redeem the check by paying the face value, or simply allow the check to be cashed. If the borrower cannot come up with the money at the end of the term and extends or \"rolls-over\" the loan, he\/she will be responsible for double the fees (or beyond).\n### Why Would Anyone Choose a Payday Loan?\nBorrowers who obtain payday loans generally have credit or cash flow difficulties, and limited other alternatives for low-cost loans. According to industry experts, paying late utility bills, making rent and buying groceries are the top reasons consumers use payday loans. They are easy to obtain, widely available, and appear to be a quick solution for needy consumers. Most payday lenders perform only minimal analysis of the borrower's ability to repay the debt; they generally do not obtain or analyze information regarding the borrower's total level of indebtedness or information on credit history from the three major credit bureaus (Equifax, Experian, TransUnion). Sadly, the ultimate result is that many low-income earners unwittingly take on more debt than they can handle.\n### What is the Future of Payday Loans?\nThe payday loan business has exploded exponentially in the last ten years, and it is becoming painstakingly clear that without increased regulation, will continue to proliferate debt in our society. According to the investment firm Stephens Inc., there are approximately 24,200 Payday Loan outlets in the United States, with the industry generating $47 billion in annual fees, including $5.65 billion (or 14%) online. According to sources at the Arizona Department of Financial Institutions (the \"home state\" for Creditinfocenter), there are 98 different payday loan companies operating 720 branches throughout the state; up from 615 sites only 18 months ago. Add to this equation the online lenders, many of which are based offshore (such as Costa Rica). These lenders are even more difficult to regulate, and may not follow federal or state laws.\nPayday lending is currently regulated in 37 states and the District of Columbia. Many states are in the process of attempting to enact legislation that would impose interest rate caps or other restrictions on payday loans. The Federal government has capped interest rates on loans offered to active duty military personnel at 36%. Although this is a step in the right direction, it only helps one subgroup of \"victims\" of this lending practice. In Arizona, the \"sunset\" law that permits Payday lending stores to do business expires 7\/1\/2010. Local Lawmakers recently deadlocked on a Bill (HB 2224) governing payday lending stores in Phoenix, which proposed restrictions such as limiting borrowers to one loan at a time; requiring that lenders utilize a database to confirm applicants don't have existing loans; requiring internet lenders to be licensed by the state; and, giving borrowers the right to repay the loans over a longer period than the original agreement. Although this particular proposal failed, many states are pursuing similar legislation to implement limitations and controls on the payday lending industry.\nThe payday lending industry has a national trade group called the Community Finance Services Association of America (CFSA). The Community Financial Services Association of America (CFSA) was established in 1999, and according to their website, CFSA is the only national and exclusive advocate for the payday advance industry and its customers. It is comprised of more than 150 member companies representing over half of the estimated 22,000 payday advance locations nationwide. Their site contains information for the consumer, including their (industry) view of the pros and cons of payday advance loans.\n### Alternatives to Payday Loans\nClearly, the first thing to do is to do your research\/shop around carefully when you need a loan!\n*   Consider credit unions or small loan companies; many credit unions are now offering low-cost short term loan programs as an alternative to payday loans.\n*   Consider a loan from a friend or family member\n*   Inquire about getting an advance on your paycheck from your employer, if possible.\n*   If you have debt, ask your creditors for more time to pay your bills; be sure to ask what fees if any they might charge for an extension.\n*   Consider a cash advance on a credit card (but ensure you've done your research first).\n*   Take inventory of your assets, sell something of value you don't feel you need any longer.\n*   Obtain overdraft protection on your checking account (if you don't already have it) but ensure you read and understand the terms associated with this protection.\n*   Consider contacting a local consumer credit counseling service if you need help working out a debt repayment plan; many of these services are free or very low cost.\n*   Compare the APR and the finance charge (including ALL fees) for each credit offer to find the lowest alternative.\n*   If you absolutely feel you have no alternative but to borrow from a payday lender, ensure that you borrow ONLY what you can afford to pay with your next paycheck and still have enough money to get to the next pay day!! END
 TITLE: Everything You Need to Know About Payday Loans CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Use the Financial Aid Shopping Sheet to Breakdown College Costs CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: October 11, 2017_\nWhen you're shopping around for the right college, how much it's going to cost you ranks right up there at the top of your priority checklist.\nUnfortunately, what college really costs isn't always made crystal clear, leaving many students and their parents surprised by just how much they end up spending by the time it's all said in done.\nThis is particularly frustrating, and downright damaging, when it comes to accumulation of student loan debt.\nThe _Financial Aid Shopping Sheet_ is proving a helpful remedy.\nWhat is the Financial Aid Shopping Sheet?\n-----------------------------------------\nDeveloped by the Consumer Financial Protection Bureau (CFPB), the Financial Aid Shopping Sheet is a standardized breakdown of information that every college in the country has been asked to provide to prospective students.\nThis tool not only enables students to quickly see what one particular college is going to cost, but also to easily compare one college to another.\n### What Information Does the Financial Aid Shopping Sheet Include?\nAimed at making the cost of college as straight-forward as possible, the Financial Aid Shopping Sheet provides a detailed breakdown of the following:\n*   **Estimated Cost of Attendance**, including tuition and fees, housing and meals, books and supplies, transportation, and other educational costs.\n*   **Grants and Scholarships**, including school grants, federal Pell grants, state grants, and other scholarships that may be available to you.\n*   **Net Cost** (i.e., cost of attendance minus grants and scholarships).\n*   **Payment Options**, including work-study programs and loans, as well as the family's contribution based on what was reported on the FAFSA (i.e., payment plan options, Parent or Graduate PLUS Loans, military and\/or National Service benefits, and non-federal private education loans).\n*   **Other School-Specific Information**, including:\n    *   Percentage of full-time students who graduate within 6 years,\n    *   Percentage of students who default on their student loans, and\n    *   Median borrowing rate for Federal loans\nBe sure and pay special attention to the median borrowing section, as this tells you 1) how much the school's students typically have to borrow, and 2) how much this median amount's monthly payments would be over 10 years time.\n### Do All College and Universities Provide the Financial Aid Shopping Sheet?\nNo. Currently, use of the Financial Aid Shopping sheet by colleges and universities is voluntary. If a college you're considering is not among the participants, ask why and consider instead other schools that are on board.\n### How Was the Financial Aid Shopping Sheet Developed?\nIn its development of the Financial Aid Shopping Sheet, the CFPB sought the input of those who know the challenges of the college application process best — students, parents, school guidance counselors, and college officials. Thousands of them shared their thoughts on the most important information to include, and how.\nIn 2012, every college and university in the nation was asked to adopt this tool. As of April 2015, over 2,900 institutions have voluntarily adopted the Shopping Sheet.\n### Where Can I See a Copy of the Financial Aid Shopping Sheet?\nEvery participating college or university will provide a Financial Aid Shopping Sheet containing information unique to you and their school. However, to get a feel for the format, which is standardized, here you can see the Financial Aid Shopping Sheet template. END
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 TITLE: Military Payday Loan Protection CONTENT: Payday Loan Protection for Military Personnel\n---------------------------------------------\n###### Written by: Kristy Welsh\nPayday lending among military personnel is rampant and many payday loan offices are set up as close to military bases as possible. With military personnel feeling the crunch even more than most consumers, this industry seems to be preying on service people. Some of the main reasons military personnel use payday loans is because they are on a fixed income with no other way to obtain additional income. This makes more and more military personnel victim to living paycheck to paycheck.\nPayday loans (and certain other financing) offered to service members and their dependents must include certain protections, under Federal law and a Department of Defense rule. For example, for payday loans offered after October 1, 2007, the military annual percentage rate cannot exceed 36 percent. Most fees and charges, with few exceptions, are included in the rate. Creditors also may not, for example, require use of a check or access to a bank account for the loan, mandatory arbitration, and unreasonable legal notices. Military consumers also must be given certain disclosures about the loan costs and your rights. Credit agreements that violate the protections are void. Creditors that offer payday loans may ask loan applicants to sign a statement about their military affiliation.\nEven with these protections, payday loans can be costly, especially if you roll-over the loan. You instead may be able to obtain financial assistance from military aid societies, such as the Army Emergency Relief, Navy and Marine Corps Relief Society, Air Force Aid Society, or Coast Guard Mutual Aid. You may be able to borrow from families or friends, or get an advance on your paycheck from your employer. If you still need credit, loans from a credit union, bank, or a small loan company may offer you lower rates and costs. They may have special offers for military applicants, and may help you start a savings account. A cash advance on your credit card may be possible, but it could be costly. Find out the terms for any credit before you sign. You may request free legal advice about a credit application from a service legal assistance office, or financial counseling from a consumer debt counselor, including about deferring your payments.\nMilitary consumers who are having financial difficulties can contact the Department of Defense, toll-free 24 hours a day, 7 days a week, at 1-800-342-9647, or at Militaryonesource.mil. Information on the Department of Defense rule, alternatives to payday loans, financial planning, and other guidance is available.\nSource: ftc.gov END
 TITLE: Military Payday Loan Protection CONTENT:    |  |  |  | \n: . END
 TITLE: Tips to Avoid Being Denied a Signature Loan CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: October 11, 2017_\nAre you planning to take out a personal loan to meet a pressing need for funds? If the thought of having your loan request denied has you upset, here are some steps you can take steps to avoid having your signature loan application denied. You will never know exactly when you will be in need of a personal loan, so be sure to closely monitor your credit report and promptly correct any erroneous entry you find. It takes a while to get your credit report corrected and you may not have the time to do so when applying for a personal loan. Know your credit score and be aware of the acceptability of your credit to lenders.\n### Provide Accurate Information on Loan Application\nWhen you are applying for a signature loan, make sure to provide only correct and accurate information. Submit the required documents including verifiable proofs of residence, income, and employment. Should your credit report include unfavorable items related to circumstances of which you have no control, it may be a good idea to attach a short but direct self-explanatory letter. It is important for you to show your credit responsibility and offer evidence on your efforts to resolve the situation. The information you provide can be of big help to the account officer and loan underwriter in obtaining approval of your loan application.\n### Offer Collateral to Secure the Loan\nWhile the best type of loan to obtain is the unsecured personal loan, there are some cases when the lender would require some form of security or collateral to ensure repayment. If it is the only option available, you can offer any valuable asset that you legally own like vehicle or real estate. However, be aware of the risk this entails. You could lose your property in case you default on your loan or if you do not fully pay it back.\n### Get a Co-Signer\nAnother alternative to obtain approval for your personal loan is to present a co-signer, someone who will act as a co-borrower and assume the same legal responsibility of paying back the loan. When you ask a friend or relative to co-sign your loan documents, you are effectively putting him at financial risk if you fail to satisfactorily pay down your loan obligation. Whoever agrees to co-sign your loan trusts you very much and you must exert every effort to keep that trust. Therefore, give priority to religiously meet the monthly payments on that loan to avoid ruining your relationship with your co-signer.\n### If You Have Poor Credit, Consider a Bad Credit Loan\nIt is not advisable to file loan applications with different lenders at almost the same time but if your application was rejected by one lending institution, it may be a good idea to seek other potential creditors. Lenders use different methods in evaluating and approving loan requests. If your credit rating is less than good, you may want to apply for a \"bad credit\" loan with specialized lenders. However, do make sure that you are dealing with a legitimate financial institution and not some scammer who take advantage of people with the same circumstances as you have. Although this type of personal loan carries higher rate of interest, you can be assured of being granted credit. Treat this as an opportunity for you to do some credit repair work primarily by making prompt monthly payments.\nIt can be very frustrating to have your application for a personal loan be rejected. Try your best to obtain credit approval during your first filing. Be truthful in your personal loan application. Lying can and will only get you in trouble. An honest explanation of issues in your credit history can help the lender understand better your particular circumstances. Take your credit seriously and do keep a good credit standing so that \"poor credit\" will never again be an issue in your future loan applications.\nNeedless to say, you will have to give top priority to repaying your personal loan once you get one. Promptly paying your monthly amortizations will ensure you that when the time comes you will again be in need of financing, you won't have much difficulty in finding a lender. Much weight is given to borrowers who have shown ample credit responsibility. Securing your personal loan with collateral or co-signer makes it more imperative for you to make timely repayments. END
 TITLE: Checklist Before You Co-Sign For a Loan CONTENT: Co-Signer’s Checklist - Answer Before Signing on the Dotted Line \n-----------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 1, 2017_\nWhether you feel honored or cursed by a request to co-sign on a loan, the key to making the right decision is in asking the right questions of **yourself**. It should never come down to whether you **_should_**, but whether you **_want_** to in light of the facts.\nIn many of our articles regarding ways to rebuild your credit, establishing new credit may mean finding a person (with good credit) who will be willing to co-sign on a loan — and that person just may be you. If you are approached by someone who is trying to rebuild and re-establish their credit, and they ask you to co-sign on a loan, we have these five questions you need to ask yourself before you go down that road.\n**1) Do You Know the Person VERY Well?**\n----------------------------------------\nUnder just about any circumstance, the length of a relationship is less important than its quality.\nOn the one hand, you have family members you’ve known all your life and friendships that go back years. But considering how reluctant most of us are to discuss money matters, you may find you know relatively little about their financial history.\nOn the other hand, you may have a newer friendship with someone who you feel you’ve gotten to know very well indeed – someone who talks openly about past financial mistakes and, hopefully, how they’ve changed their ways.\nEither way, make it a point of sitting down with the person and covering the following points:\n*   If you don’t know already, ask them what circumstances led them to have the financial difficulties that make it hard for them to get a loan on their own.\n*   Ask to see financial documents (e.g., personal financial statement, bank statements, pay stubs).\n*   Ask them to sign a statement of intent to refinance the loan in their own name as soon as possible (unless a co-signer release comes first).\n*   Let them know you will be keeping monthly tabs on the loan to be sure payments are being made in full and on-time.\n**2) Are You Prepared to Take Full Responsibility For the Loan in the Event the Borrower Cannot Make the Payments?**\n--------------------------------------------------------------------------------------------------------------------\nShould the borrower be unable to make their payments, you will be held fully responsible for loan. This includes payments not made due to the borrower’s filing of bankruptcy or death.\n**3) In the Event of Default, Are You Prepared For the Co-Signed Account to Negatively Impact Your Credit Score?**\n------------------------------------------------------------------------------------------------------------------\nShould you be unable or unwilling to make good on payments, are you prepared for your credit score to take the hit? Note, this will include a negative listing on your credit reports, as well as demands from creditors and\/or collection agencies.\n**4) Do You Have an Exit Plan?**\n--------------------------------\nJust because you are co-signing on a loan today in no way binds you to it for the life of the loan. You can (and should) plan to request a co-signer release as soon as you are eligible to do so, which may be after a period of 2 years of timely payments.\nIn lieu of a co-signer release, the borrower may apply for refinancing of the loan. Make sure this is part of the plan from the beginning, recorded in writing and signed by both of you.\nIf it’s a credit card account, transferring the balance to a different card may also be a practical option.\n**5) Are You Doing it For the Right Reasons?**\n----------------------------------------------\nNever allow obligation or guilt to talk you into co-signing on a loan. In fact, if you are experiencing any negative feelings or doubt, it is probably best to pass on the co-signing request.\nIn fact, the only time to co-sign on a loan is if everything about it feels good and looks right. This includes the borrower’s ability and intention to repay the loan, of course. But also a genuine desire to help this person – a desire so strong and sure that you are willing to bet your own money and good credit on it. END
 TITLE: PayDay Loans vs PrePaid Debit Cards CONTENT: Payday Loans Cheaper than Checking Overdraft Fees or PrePaid Debit Cards?\n-------------------------------------------------------------------------\n###### Written by: Kristy Welsh\nWe've written articles and blog posts roiling against the payday loan industry. But, can payday loans can be cheaper than checking account fees or prepaid debit cards?\nAccording to a study by the consulting firm Bretton Woods Inc, U.S. banks recognize the fact that middle income customers present the greatest potential to harvest fees. The bulk of these fees are checking account overdraft fees, accounting for over 90 percent of all bank fees.\nThree quarters of banks automatically enroll consumers in their \"overdraft protection\" programs without formal permission, and more than half of banks manipulate the order in which checks are cleared to trigger multiple overdraft fees.\n**Fee Income**\n--------------\n*   Bank and credit union income from non-sufficient funds (NSF) and overdraft program (ODP) fees exceed $34.7 billion.\n*   NSF\/ODP fee income by state ranges from nearly $40 million in Wyoming to $3.2 billion in Texas.\n**NSF\/ODP Cost per Household**\n------------------------------\n*   The national annual NSF cost per household with checking accounts is approximately $343.\n*   Active households (defined as the 20.2 million households with bank or credit union accounts who write the majority of NSF items) pay $1,374 in annual NSF fees.\nPayday Loans vs Overdraft Fees\n------------------------------\nHere is a fact that might be hard to swallow — overdraft fees can be more expensive than payday loans. Here are the calculations:\n$100 advance incurs an $18 fee.  \n$100 bounced check incurs a $35 overdraft fee.\nPretty easy to see which is cheaper. Now we are not encouraging the use of payday loans!! You can get into very serious trouble taking out a payday loan. Loan fees often make it impossible for them to pay off their loans with upcoming paychecks.\nPrePaid Card Fees vs Overdraft Fees\n-----------------------------------\nA better alternative to payday loans would be a prepaid debit card. These cards typically cost $70 to $80 a year ($10 upfront with a $5 monthly fee). Users direct-deposit their paychecks onto the cards (the money is FDIC-insured) and can do point-of-sale transactions and pay bills online. There are no overdraft fees; the purchase is declined if the card is empty.\nPrepaid cards may also help you if you have a black mark in ChexSystems, the \"credit score\" of checking accounts. Prepaid cards do not check you out via ChexSystems, so you cannot be turned down.\n**Please Note**: We only mentioned the alternatives to checking accounts to give you an idea of actual costs. If you absolutely can't manage your checking account, maybe you should consider one of them. Of course, if you already have a checking account, you can prevent overdraft fees by just keeping better track of your account balances.\nOverdraft Fees by Bank\n----------------------\nBank\nFees\nComments\nBank of America\n$25 each item. Beginning February 9, 2009, $35 each item\nCharges apply to a maximum 5 items per day or $175 per day\nUS Bank\n1 occasion $19.00 per item; 2-4 occasions $35.00 per item; 5 or more occasions $37.50 per item\nFees are subject to a daily maximum of 6 overdraft items paid and 6 overdraft items returned - a maximum total of 12 per day or $424 per day\nCitibank\n$34 per item\nNo daily limit\nWells Fargo\n$33 for every overdraft fee and $28 for every NSF fee\nThere are overdraft protection transfer\/advance service fees depending on which account is linked to the Checking Account for Overdraft Protection:\n*   Savings accounts. A daily fee of $10 applies for all overdrafts that occur in a single day.\n*   Credit Card. $10 if the total of Overdraft Protection advances for the day is less than $25.00. $12.50 if the total of Overdraft Protection advances for the day is $25.01 - $100.00. $15.00 if the total of Overdraft Protection advances for the day is $100.01 - $500.00. $20.00 if the total of Overdraft Protection advances for the day is more than $500.00.\nSunTrust\n$35 per item\nNo daily limit\n_(Table data is taken from web site survey conducted by Bretton Woods, Inc, on December 15, 2008)_\nWhat You Can Do to Avoid Overdraft Fees\n---------------------------------------\n*   Keep track of how much money you have in your checking account by keeping your account register up-to-date. \n*   Make sure there are extra funds in your checking account to cover any checks or fees you might have forgotten. Just an extra $50-$100 in your account at all times can save you hundreds of dollars in overdraft fees.\n*   Pay special attention to your electronic transactions. Record your ATM withdrawals and fees, debit card purchases, and online payments.\n*   Don't forget about automatic bill payments you may have set up for utilities, insurance, or loan payments. END
 TITLE: PayDay Loans vs PrePaid Debit Cards CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: PayDay Loans vs PrePaid Debit Cards CONTENT:    |  |  |  | \n: . END
 TITLE: Borrowing Money From Your IRA or 401(k) CONTENT: Borrow From Your IRA or 401(k) With Caution\n-------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 1, 2017_\n401k's, IRAs and other pretax retirement savings accounts are now the most common ways to save for retirement, and millions of Americans pour money into them every year. In some cases, people commit too much money into their IRAs, without saving enough readily available cash for a rainy day. With economic conditions making it harder to borrow money these days, plenty of individuals are finding themselves searching for creative and sensible ways to finance life's wants, needs, and emergencies. Unfortunately, millions more take early withdrawals from these accounts due to hardship, loss of a job or other money woes. Is it a good idea to borrow money from your IRA or 401(k) account? Read on and get more information before you make this important decision.\nIs it a Good Idea to Borrow From Your IRA?\n------------------------------------------\nThe answers can be \"yes\" and \"no\" depending on various factors, but financial planners and tax professionals typically will offer virtually the same advice: If you can avoid it, don't tap into your retirement funds before your turn 59 years old, the age the U.S. government says is OK to begin withdrawals without incurring a 10 percent hit.\nAdditionally, it is important to understand the differences between borrowing and taking early distributions from an IRA versus a 401(k), as they are distinctly different animals. Both the IRA and the 401(k) are vehicles to save money for retirement, or occasionally for major purchases such as a child's college education or a down payment on a house. The principle difference between the two is that 401(k)s are retirement saving plans offered through your employer, and the IRA is a plan you set up on your own, with the help of a bank, or other financial agency. We'll look at each of these separately to help clarify these differences and hopefully help you understand the ramifications of borrowing, or taking early distributions, from either.\nInformation You Need Before Borrowing From an IRA\n-------------------------------------------------\n**What is an IRA?**  An IRA is an Individual Retirement Account, and provides either a tax-deferred or tax-free way of saving for retirement. There are many different types of accounts within the world of IRAs, depending on the financial goals and circumstances of each individual, though traditional and Roth IRAs are the most common types. An individual is allowed to contribute up to a maximum value established by the IRS each year into the account(s). In return, you are required to wait until you are at least 59 years old to begin distributions. The penalty for withdrawal prior to this is 10 percent, so it's definitely not a good idea to withdraw early.\nThere are a number of exceptions to the rule that penalties apply to distributions before age 59. You'll want to visit the IRS website to obtain detailed regulations for each situation, but a summary of these exceptions is as follows:\n*   The portion of unreimbursed medical expenses that are more than 7.5 percent of adjusted gross income.\n*   Distributions to buy, build, or rebuild a first home. ($10,000 lifetime maximum)\n*   Distributions that are not more than the cost of medical insurance while unemployed.\n*   Disability which is defined as not being able to engage in any substantial gainful activity.\n*   Distributions in the form of an annuity, called substantially equal periodic payments.\n*   Distributions that are not more than the qualified higher education expenses of the owner or their children or grandchildren.\n*   Distribution due to an IRS levy of the plan.\n*   Amounts distributed to beneficiaries of a deceased IRA owner.\nAll of the above information deals with distributions, or withdrawals, from your IRA that can be done without penalty (but you will still be responsible for any income tax due).\n**Can You Take Out a Short-Term Loan?**  If you're only looking for a short-term source of money, and you can repay those funds within a 60-day period, then it can be done. It's called an IRA rollover, and the rules that govern it apply to both traditional and Roth IRA accounts. It's a relatively simple way to get your hands on a considerable amount of money without having to fill out a bunch of forms or pay any additional loan fees or other expenses, and you don't have to pay interest on the loan during that 60-day period. During that 60-day period, you'll need to ensure that you are able to secure a loan (or other source of permanent financing) in order to make the repayment, if necessary; the IRS is very strict regarding the 60 day window. Additionally, you can move funds from one IRA account to another, but not more than once in a 12- month period.\nNevertheless, the law allows you a 60-day grace period in which to move the funds. And, as it turns out, you aren't required to actually move the funds to another account; they can be redeposited back to the original IRA account and still satisfy the rollover provisions. Another key benefit to it is important to understand and be aware of is that you can elect to take these funds without the mandatory 20 percent withholding. It's the best of all possible worlds, as long as you get the money back into another (or the same) IRA account within the required 60-day period.\nInformation You Need Before Borrowing Money From Your 401(k)\n------------------------------------------------------------\n**What is a 401(k)?**  A 401(k) plan is a type of employer-sponsored defined contribution retirement plan under section 401(k) of the Internal Revenue Code (26 U.S.C.401(k)). A 401(k) plan allows an employee to save for retirement while deferring income taxes on the saved money and earnings until withdrawal. The employee elects to have a portion of his or her wage paid directly, or deferred, into his or her 401(k) account.\nUnlike IRAs, borrowing funds from a 401(k) can be arranged for periods longer than 60 days, but you are going to pay to do it. Not everyone's 401(k) plan will have a borrowing option, but the majority do. If it seems as though borrowing from your plan is your only option (and it should be your last option; not your first!), it is a relatively quick and easy type of loan to arrange, given that you are tapping into your own account, and therefore do not need to qualify for credit. Rules typically allow borrowing up to 50 percent of the vested account balance or $50,000, whichever is less. A consumer usually has a maximum of five years to repay the loan, unless the funds are earmarked for borrowing for a first home, in which case a longer payback will be allowable.\nAdvantages of borrowing from your 401(k):\n1.  **It's easy.**  Loan approval may be just a phone call away.\n2.  **No credit check.**  Given you have sufficient funds, the money is yours without worry.\n3.  **Relatively low interest rate.**  Usually lower than other types of loans, plus the interest is tax-sheltered.\nDisadvantages of borrowing from your 401(k):\n1.  **It's easy.**  Yes, it may be too easy, and affect your attitude and ability to save in the future.\n2.  **If you quit or lose your job.**  The loan usually becomes payable in full, within 90 days maximum.\n3.  **Tax obstacles if you default.**  A default turns the borrowed sum into a 401(k) distribution, thus ordinary federal and state income taxes would apply plus the 10 percent penalty for those under age 59.\n4.  **You are losing investment interest.**  The net effect is that you have less money to invest and to earn interest. The money you borrow or take out of your retirement plan no longer appreciates in value from interest, dividends and\/or capital gains in conjunction with the rest of your investment portfolio.\n5.  **It is not tax sheltered money anymore.**  Whether you repay the 401(k) loan out of your salary or from a bank account, those payments are all made back into the 401(k) with after-tax dollars.\nBut let's go right back to the big question: **Is it a good idea to tap into your retirement funds?** Unless you absolutely have no other recourse, the answer is **NO**. However, we hope that if you do find yourself needing to do so, the information above will help guide you to make an informed, wise decision. END
 TITLE: Borrowing Money From Your IRA or 401(k) CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: How to Use Federal Student Aid or FAFSA to Pay For College CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: October 11, 2017_\nCollege tuition grows by leaps-and-bounds every year. So if you or a loved one is college-bound, take advantage of every opportunity for securing financial aid, starting with FAFSA.\nWhat is FAFSA?\n--------------\nFAFSA stands for Free Application for Federal Student Aid. Financial aid for college students granted through this program may be in the form of grants, student loans or work-study programs.\n### How Much Aid Can I Expect to Receive From the FAFSA?\nThe Department of Education does not reveal how it determines the amount of aid for which you qualify nor, in turn, the amount of your \"expected family contribution.\" This formula is intentionally withheld so as to prevent people from \"gaming\" the system. In other words, the only thing within your control is answering every question in the application as honestly and thoroughly as possible.\n### What is the Best Strategy for Filling Out an FAFSA Application?\nBecause the formula for determining the amount of FAFSA aid is not revealed, the best strategy you have is that of being truthful and thorough. Of course, as with anything else as important as this, do not wait until the last minute. Rushing the process is no strategy at all. In fact, beware of questions that seem like ones you can breeze through with little thought. The easier they seem, the more important they may be.\n### Should Student Income be Included in the Family Income Section?\n**Absolutely not.** Unfortunately, this is a mistake many families make in the FAFSA application process. If you make this mistake, you are claiming the same income twice. Student income is student income and family income is everything else.\n### Are Tax Documents Required for the FAFSA?\nYes, you are required to submit federal income tax documents during the FAFSA filing process. For this reason, try to file your taxes early, and electronically. The application system is set up so that electronically-filed taxes can easily be merged into the FAFSA application, thus expediting the process.\n### Does it Help to File the FAFSA Early?\nThere is a limited amount of funds available via FAFSA, so conventional wisdom says the sooner you submit, the better. However, it is not worth rushing the process. What's more important than filing early is making sure you are filing it correctly. Double-check, triple-check, then quadruple-check your forms. The only exception to this advice is if you are expecting a big change in your financial situation — on the positive side of things — before the filing due date. That would mean having to include this information in your application, thus lowering the amount of financial aid for which you qualify.\n### What is the Deadline for Filing an FAFSA?\nEach state has a different filing deadline for the FAFSA. Beyond that, there are as many as 30 supplemental forms that colleges may request, any number of which could have different filing deadlines. So it is imperative you check with the schools you are considering, not only for the FAFSA filing deadline, but also to determine what other forms may be required, and by what date.\n### What if I Miss the FAFSA Filing Deadline?\nIf you think you may miss the deadline for filing the FAFSA, contact the school to see about getting an extension. Though it may be out of the question, it is certainly not unheard of and worth a try. That said, try to make this request before the deadline has passed. The school may respond more favorably in this regard.\n### How Do I File the FAFSA?\nIt is recommended that you file your FAFSA via the online application. However, you also have the option of downloading and printing a PDF version that you mail in for submission. A third, and least appealing option, is you may request that a hardcopy be sent to you via snail mail (i.e., the USPS). For details about all of these options, go to FAFSA.ed.gov.\n### Should I Accept an Offer of FAFSA as Soon as Possible?\nNo. When a school offers you FAFSA aid, the last thing you want to do is respond immediately. Why? Because then they will know that their school is probably your top pick and you will be ill-equipped to negotiate a higher offer. That's right! There is room for negotiation in the FAFSA. It's something colleges expect and accept. END
 TITLE: Understand Different Types of Federal Student Loan CONTENT: Types of Student Loans — Federal Loans, Federal Family Education Loan\n---------------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 3, 2017_\nMany parents are finding it harder and harder to pay for their child's higher education. If you have children in high school who are just about ready to graduate, you are probably already thinking about how you are going to pay the tuition. Tuition rates seem to go up every year and no longer is it cheaper to have your child attend an in-state college. Applying for scholarships and grants is great, but not all students will get money this way. Applying for and taking out a student loan may be your only course of action.\nBuried deep in the bowels of the health care reform package that was passed in 2010, are provisions that were meant to shake up the student loan industry. In a nutshell, this reform is cutting out the middleman (banks and lending institutions) and all colleges must arrange for students to take their federal Stafford loans directly from the government. What does this mean to you?\n*   Undergrads can continue to be eligible to borrow Stafford funds of at least $5,500 and up to $12,500.\n*   Interest rates cannot exceed 6.8 percent a year.\n*   Graduate students can continue to borrow their full cost of attendance through the Grad PLUS program at an interest rate of no more than 7.9 percent a year.\n*   Starting with federal loans taken out in 2014, future grads will be able to sign up for an \"income-based repayment\" plan that will cap their monthly payments at 10 percent of their income.\n*   The reform will also enable the federal government to raise more money to fund bigger Pell Grants.\nLike any other loan, student loans are borrowed money that must be repaid with interest. Both undergraduate and graduate students may borrow money. Parents may also borrow to pay education expenses for dependent undergraduate students. Maximum loan amounts increase with each year of completed study. There are three main types of federal loans:\n*   **Federal Stafford Loans**\n    1.  **Subsidized Federal Stafford Loan.** This loan is long-term and need-based, with a low-interest rate. The term \"subsidized\" means that the government will pay the interest on the loan while a student is in school or when the student requests a grace period or deferment.\n    2.  **Unsubsidized Stafford Loan.** This loan is long-term, non-need-based, with a low-interest rate. This type of loan is best for students who don't qualify for other types of financial aid, or who still need more money in addition to other forms of financial aid. Almost all household incomes qualify, and \"unsubsidized\" means that the interest on the loan is the responsibility of the borrower.\n*   **Federal Plus Loans.** These loans are available to parents whose children are attending college as full or half-time undergraduate students. They are awarded based on credit history and cost of attendance. The interest is low on this type of loan, but repayment usually begins within 60-90 days after full disbursement of the loan, or after the student graduates.\n*   **Federal Perkins Loans.** Perkins loans are awarded to students based on extreme financial need, and usually have very low interest rates. The total funds available to be disbursed for these loans is limited, however, which means that the amount of the loan will likely be relatively low.\nYou must meet these requirements to receive aid from any Federal Student Financial Aid programs:\n*   Be a U.S. citizen or eligible noncitizen of the United States with a valid Social Security Number;\n*   Have a high school diploma or a General Education Development (GED) certificate or pass an approved \"ability to benefit\" test;\n*   Enroll in an eligible program as a regular student seeking a degree or certificate; and\n*   Register (or have registered) for Selective Service, if you are a male between the ages of 18 and 25.\nHow to Apply for a Student Loan\n-------------------------------\n**1.**  Complete the FAFSA (Free Application for Federal Student Aid). The FAFSA lists deadlines for federal and state aid. Check deadlines! Schools and states may have their own deadlines for aid.\nYou must fill out a new FAFSA for each year you plan to be enrolled in school. The best time to apply for aid is between January 1 and March 1, since most schools award aid on a first-come, first-served basis. About six weeks after you submit your FAFSA, you will receive a student aid report that will give you an opportunity to correct previously reported 'incorrect information' before the form goes from the Department of Education to your school.\nYou may get a FAFSA from:\n*   a high school guidance office;\n*   a college financial aid office;\n*   a local public library;\n*   the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243); or\n*   you can apply online at: fafsa.ed.gov.\n**2.**  One to four weeks after you submit your FAFSA, you will receive a Student Aid Report (SAR). The report confirms the information reported on your application and will tell you your Expected Family Contribution (an amount you and your family are expected to contribute toward your education, although this amount may not exactly match the amount you and your family end up contributing).\n**3.**  Contact the school(s) you are interested in attending and talk with the financial aid administrator. They will review your SAR and prepare a letter outlining the amount of aid (from all sources) that their school will offer you.\n**4.**  Figure out what other forms you need to complete:\n*   Some colleges have their own institutional forms, in addition to the FAFSA.\n*   Some colleges require the CSS\/Financial Aid Profile to apply for non-federal aid. You can apply online and learn more at CollegeBoard.com.\n### When in Doubt, Fill Out the FAFSA Anyway\nEven if you don't think you're eligible for federal assistance, definitely fill out the form, because the FAFSA is used by many non-government aid programs in order to determine your eligibility for the scholarships, loans, and other programs they offer.\nHere are the items you need to help you fill out the application:\n*   Social security card and driver's license.\n*   W-2 Forms or other records of earned-income along with your federal income tax return (and your spouse's, if you are married). You'll need IRS Form 1040, 1040A, or 1040EZ and any 1099 forms you received.\n*   Your parent's federal income tax return. (unless you are filing as independent)\n*   Records of other untaxed income you received, including AFDC or ADC, child support, welfare benefits, social security benefits, TANF, veteran's benefits, and military or clergy allowances.\n*   Current bank statements, mortgage information, and records of stocks, bonds, and other investments.\n*   Medical and dental expenses for the past year that weren't covered by health insurance.\n*   Your business or farm records, if applicable.\n*   Your alien registration card (if you are not a U.S. citizen).\n### Expected Family Contribution\nThe EFC is a measure of your family's ability to pay for college based on student and parent income and asset information, your state of residence, household size, and number of household members in college. You can request a free copy of the EFC Formula by calling 1-800-4FED-AID and requesting the current SFA Handbook.\nSince you most likely don't have a copy of the above booklet in your hands, we will attempt here to briefly explain how the EFC is calculated. The EFC is the sum of the student contribution and the parent contribution. Some schools (mostly private) expect both natural parents to contribute to their children's educational expenses, regardless of a divorce or any court orders to the contrary. In cases of divorce where the custodial parent remarries, the financial information for both the custodial parent and the step-parent must be included on the FAFSA as well as any child support and\/or alimony received from the non-custodial parent.\nThe calculation of the expected student contribution is generally 35 percent of the student's assets and 50 percent of the student's prior year (including summer) earnings. (The federal calculation is 50 percent of the net earnings above $2,200 and 35 percent of the student's reported assets.)\nA few things to note about the needs assessment formula: (1) student assets are assessed more heavily than parent assets; (2) student income is assessed more heavily than parent income; and (3) in most cases the EFC will go down when the number of family members in school goes up.\nThe school you attend establishes a Cost of Attendance (COA). The school's COA will include tuition, fees, room and board, books and supplies, travel, and personal and incidental expenses. In many cases there is a standard fixed budget amount for some of these categories. But the budget amount for travel may vary depending on the student's home state. Likewise, room and board expenses may be reduced and travel expenses increased for commuter students.\nHow to Qualify as an Independent Student\n----------------------------------------\nIf you are classified as an independent student, only your (and your spouse's) income and assets are considered. To qualify as an independent student, you must meet at least **one** of the following criteria:\n*   be at least 24 years old;\n*   be an orphan;\n*   have a dependent other than a spouse;\n*   be a graduate or professional student;\n*   be a veteran of the Armed Forces;\n*   be married;\n*   be a ward of the court.\nEligibility for Student Loans\n-----------------------------\nAs you can see from the definitions given above, the COA and the EFC may be different for every school. However, once these are calculated, every school uses the same formula to determine how much Federal financial aid to award to students:\nCOA - EFC = Financial Need\nIn order for you to receive need-based aid, your COA must be greater than your EFC.\nAs you probably have guessed, most schools only have money to help out the most needy of students. The financial aid office at your school will use the need-based resources they have available to try to meet your Financial Need.\nStudent Loan Default Information\n--------------------------------\nUnfortunately, many students find themselves in the terrible position of defaulting on their student loans. Because of this, student loan borrowers in default now have more options than ever before to repay their student loans.\n### When is a Loan Considered in Default?\nFor student loans authorized under Section 435(i)Title IV of the Higher Education Act, default occurs on a FFEL loan after a default has persisted for 270 days in the case of a loan repayable in monthly installments or 330 days in the case of a loan repayable in less frequent installments. The change is effective for loans for which the first date of delinquency occurred on or after October 7, 1998. During the delinquency period, the lender must exercise \"due diligence\" in attempting to collect the loan; that is, the lender must make repeated efforts to locate and contact you about repayment. If the lender's efforts are unsuccessful, it will usually take steps to place the loan in default and turn the loan over to the guaranty agency in your state. Lenders may \"accelerate\" a defaulted loan, which means that the entire balance of the loan (principal and interest) becomes due in a single payment.\nIf the loan is placed in default, the loan is then turned over to the U.S. Department of Education (ED).\n### Which Type of Loan Do You Have?\n**Federal Family Education Loans (FFEL) -** These include Federal Stafford and Federal PLUS loans. When placed in default, these loans are first assigned to a guaranty agency (an organization that administers the FFEL Program for your state) for collection. Periodically, guaranty agencies assign loans to ED for collection.\n**Direct Loans -** Federal Stafford and PLUS loans are also offered through the William D. Ford Direct Loan Program. When placed in default, these loans are assigned to the ED's Debt Collection Service.\n**Federal Perkins Loans** - When placed in default, Perkins Loans may remain with the school or be assigned to ED for collection.\nIf you are not sure what type of loan you have, check your promissory note. If your loan is not one of the loans listed above, the information listed above does not apply to you.\n### Repaying Student Loans Held by the U.S. Department of Education\nIf you default on your student loan, the maturity date of each promissory note is accelerated making payment in full immediately due, and you are no longer eligible for any type of deferment or forbearance. However, all guaranty agencies and the ED will accept regular monthly payments that are both reasonable to the agency and affordable to you.\nIf your defaulted student loan is held by ED, you should establish a repayment arrangement with Debt Collection Service or the collection agency currently administering your account on behalf of ED. Failure to repay the loan may lead to several negative consequences for you:\n*   The U.S. Treasury may withhold your payments toward repayment of your loan.\n*   You may have to pay additional collection costs.\n*   Also, you may be subject to Administrative Wage Garnishment, whereby the Department will require your employer to forward 10 to 15 percent of your disposable pay toward repayment of your loan.\n*   Federal employees face the possibility of having 15 percent of their disposable pay offset by the Department toward repayment of their loan through the Federal Employee Salary Offset Program.\n*   The Department may take legal action to force you to repay the loan.\n*   Finally, credit bureaus may be notified, and your credit rating will suffer.\nIn addition, you may not receive any additional Title IV Federal student aid if you are in default in any Title IV student loan.\nStatute of Limitations on Student Loans\n---------------------------------------\nBy virtue of section 484A(a) of the Higher Education Act, statute of limitations of no kind now limits ED's or the guaranty agency's ability to file suit, enforce judgments, initiate offsets, or other actions, to collect a defaulted student loan. Regardless of the age of the debt, statutes of limitation are no longer valid defenses against repayment of a student loan.\n### Online Information\nTo obtain more information and to download student loan default forms, go to the website ed.gov.\n### Contact Sallie Mae\nFax: 800-848-1949\nP.O. Box 9500  \nWilkes Barre, PA 18773-9500 END
 TITLE: Finding Scholarship Money for College and Financial Aid CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: October 11, 2017_\nAs you may know, student loan debt now exceeds credit card debt for the first time in U.S. history. Though a number of factors play a part in this, key among them is the rising cost of tuition. So consider these 10 tips for finding FREE scholarship money for college, thus minimizing debt and the years-long stress of paying it off.\n### 1\\. Start Looking for Scholarships Your Junior Year\nMany high school students and their parents don't start looking for scholarship opportunities until their senior year of high school. However, this can be a disadvantage, as deadlines are looming and the pressure is on to not only find all the scholarship opportunities out there, but also to apply in a timely, effective manner. Instead, start looking before January 1 of your junior year. This will give you plenty of time to get a feel for the field and start a master list of scholarships you definitely want to apply for, including deadlines you don't want to miss. Of course, continue looking into your senior year, as you never know what new opportunities may arise.\n### 2\\. Consult With Your High School Guidance Counselor About Scholarship Opportunities\nOne of the most important roles fulfilled by a high school guidance counselor is help that extends beyond graduation — scholarship recommendations. After all, it's their job to not only know you well, but also to know of scholarships best-suited to your personal aptitudes and achievements.\n### 3\\. Consult With Your College Financial Aid Officer\nWhether you've already applied and\/or been accepted, do not hesitate to make an appointment to see the financial aid officer at the college(s) you have in mind. Ask about scholarship opportunities available to all students, as well as those that are program-specific.\n### 4\\. Apply to Colleges Early\nOften, colleges will only share all of their scholarship opportunities with students who have already been accepted into one of their programs. For this reason, do not wait to apply. Plus, if and when you apply and are accepted to multiple schools, availability of scholarship opportunities may prove a determining factor in where you go.\n### 5\\. Look Online for Scholarship Opportunities\nThere are a number of websites devoted to matching up students with scholarship money. Though you may browse these options on your own, be sure to avoid any site that asks you to pay a fee for this information. There are plenty of reputable sites that provide this service for free, such as Scholarships.com and FastWeb.com.\n### 6\\. Bury Your Nose in a Book\nThough the internet is an invaluable resource, sometimes it's nice to have a good-old-fashioned book at your fingertips. Some of the most reputable ones for scholarship listings include _The College Board Scholarship Handbook_; Kaplan Scholarship Books; and _The National Research Service's Guide to Private-Sector Scholarships, Fellowships, Grants, and Loans for the Undergraduate_.\n### 7\\. Check for Scholarships Offered by Local Businesses and Organizations (the closer to home the better)\nThe Chamber of Commerce is a great place to start, as if your employer and that of your parents. Often times these are relatively small scholarships — starting at $1,000 — but every dollar makes a difference, especially if you were to be awarded multiple scholarships of this size.\n### 8\\. Fill Out Scholarship Applications to the Best of Your Ability\nThis means reading instructions carefully, answering questions as fully and accurately as possible, and, of course, submitting your application before the deadline date. And if there is an essay portion, don't let that intimidate you. In most cases, the eloquence of your writing is less important than your sincerity and attention to detail.\n### 9\\. Don't Limit Your Scholarship Search to Your High School Years\nWhether you're already in college or haven't been in school for years, there are plenty of scholarship opportunities for you to explore. Talking to a college financial aid officer is a great place to start.\n### 10\\. Never Give Up Before You Try\nMany students and their parents assume only straight-A students or star athletes win scholarship money. Nothing could be further from the truth. There are many types of scholarships out there, each with their own specific list of qualifications, of which grades and athletic ability are not given top priority. END
 TITLE: Payday Loans and Legal Loan Sharks CONTENT: Payday Loans - Check Cashing, Payday Advances\n---------------------------------------------\n###### Written by: Kristy Welsh\nBy Maureen Rooney\nOkay kids. It's quiz time!\nWhat is the most expensive legal form of credit available to you?\nIf your answer is a secured credit card at 24% APR, you are off by a mile. Try getting a payday loan.\nPayday loans, also known as deferred presentment, are currently available in 20 states plus the District of Columbia. They are short-term loans, generally 7 to 14 days, against a post-dated check. In Arizona, this loan against the paycheck you haven't yet earned carries a 15% fee. On the average payday loan of $300 for eight days, this 15% fee equates to an APR of 459%!\nCheck cashing and payday loan shops are popping up like mushrooms in plaza storefronts around my downtown neighborhood in Phoenix, Arizona. Signs announcing \"Cash King coming soon\" appear at 7th Street and McDowell next to the Starbucks and at Central and Thomas between the florist and the dry cleaner.\nWill people take an advance on next week's pay to buy a Mocha Frappuccino, I wonder? Will they borrow to retrieve their dry cleaning or to buy flowers for their girlfriend? As Cash King joins Cash One, CheckMate, EZLoans, Money Mart, --there are more than 250 shops in the state of Arizona with one-third in the City of Phoenix--I have to wonder. Is there a need for payday loans?\nAccording to the payday loan propaganda, everybody needs a payday loan. It's a quick, no hassle way for consumers to secure small, emergency loans, with little or no red tape. They claim payday loans serve an under-served market because neither consumer finance companies nor banks are interested in originating $100 to $500 non-secured loans.\nYes. A payday loan is quick and relatively hassle-free. You write a check to the payday loan people for the loan amount plus fees. (In Arizona the loan can be from $50 to $500 and the maximum fee is 15% of the loan amount.) You postdate the check to the date of your next payday. They give you cash for the loan amount. You agree to either bring in the cash in exchange for your check or allow them to automatically debit your bank account on your next pay day.\nThere are several problems with this arrangement.\n*   First, the fee you pay for the use of this money is exorbitantly high. Think of it this way: by borrowing your pay in advance, you are settling for a 15% cut in pay.\n*   Second, if you can't make it through to the next payday without a loan, and you're already spending next week's pay, how will you ever make it through next week without another loan? This can be a vicious, and very expensive, cycle.\n*   Thirdly, it is considered fraud to knowingly write a bad check in many states (including Arizona). This means that on the off chance that you don't reclaim your check on the agreed date, they will deposit it anyway. \"Bad check\" laws in many states (including Arizona) allow them to take you to civil court for three times the amount of the check plus court fees.\n*   And, if your check bounces, they will charge you an NSF fee of up to $30. Don't forget that our own bank will also charge you an NSF fee.\n*   Can it get any more expensive? Unfortunately, it can. They can also prosecute you for fraud, if they are so inclined.\nHow can they legally lend money at such exorbitant interest rates? By simply not calling it \"interest.\" Payday loans charge a \"fee\" which makes them exempt from the standard usury laws that cap interest rates. In Arizona, the legalize reads like this: \"The fee charged by the licensee is not interest for purposes of any other law or rule of this state.\" Arizona (along with 19 other states and the District of Columbia) has given the green light to loan sharking.\nPayday loans take advantage of clients who lack financial savvy--who never stopped to think about the \"cost of money\" or who, quite simply, don't budget well enough to have $300 in the bank in the event of an unexpected expense.\nSpending money before you earn it, the enticement offered by payday loan companies, is diametrically opposed to anything you will learn in any financial planning book or class. The commonsense rule is this--earn money, pay yourself first (by putting a percentage into savings or some other investment vehicle), then spend. The initial pain of budgeting will quickly be replaced by the good feeling you'll get from reaching a goal.\nAlthough budgeting and saving defers spending a little, it costs much less in the long run to buy needed items with cash from your savings. Instead of paying 15% (at an APR of 459%) for the privilege of purchasing something today, you earn interest on the savings until you are ready to buy. In effect, you will have more money to spend by the time you get around to spending in the future.\nContrary to what they say, payday loan shops are not in business to help you through a one-time financial emergency. The payday loan propagandists claim that this unexpected expense is their reason for existence, but, in reality, the regular customer is their bread and butter.\nOne Web site touting the advantages of opening a loan shop claims an annual return of 805% for investors! Their best estimates of the average returns possible for one payday loan store:\nMonthly volume for 1 store: 575 checks  \nAverage loan: $300  \nAverage fee: $15 per $100 advanced  \nTotal monthly loan volume: $172,500 ($300 X 575)  \nTotal monthly fee income of one payday loan store: $25,875 ($172,500 X 15%)\nWho's fooling whom? If the payday loan shop operator is winning that big on their investment, it's because the rest of us are losing just as big.\nHeed some sage advice, paraphrased from the Consumer Federation of America:\n*   Make a realistic budget and live it. You will have savings so you will never need to borrow small sums to meet emergency expenses. (By not paying the fee on a typical $300 payday loan for seven paydays, you will have your own $300 savings for a financial emergency.)\n*   Shop for the lowest cost credit available from cash advances on credit cards, small loans from your credit union or a small loan company, an advance on your pay from your employer, and loans from friends or family.\n*   If you need money to pay a utility bill, ask the utility company for an extension. Look into the late fee they charge. Is it less than the 15% fee from the payday loan folks?\n*   Consider getting overdraft protection on your checking account. My credit union charges nothing for this service if used only once a month. If your bank has an overdraft fee, find out what it costs. If it is less costly than the payday loan, use it.\n*   If you must use payday loans, borrow only as much as you can afford to pay with your next paycheck and still have enough to make it to the next payday. Otherwise, you will become the payday loan industry's dream client--returning every payday for a loan.\n*   If you have on-going financial problems, seek help. Budgeting and debt management counseling is available from credit unions and local non-profit agencies.\nIn closing, I am asking you all to help rid my neighborhood and yours of payday loan shops and all their lovely neon. Use your credit options wisely. Budget and build your savings. Don't use these expensive services. If no one ever steps inside their doors, they'll go away. END
 TITLE: Payday Loans and Legal Loan Sharks CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Utility Companies Using Payday Loans CONTENT: Paying Utilities with Payday Loans\n----------------------------------\n###### Written by: Kristy Welsh\nA disturbing trend appears to be growing amongst the providers of our utilities. Across the country, as well as locally in the Phoenix area, many utility companies have closed the doors on a significant number of their on-site customer service centers. As a purported cost-savings measure, they are replacing these local service centers with chain-style retail outlets whose primary business typically includes check-cashing and payday loans. This forces consumers who need to make a payment in person to be exposed to and utilize the services of these predatory lending facilities.\n### Why is This a Disturbing Trend?\nUnfortunately many of the consumers that are so strapped for cash that they have to pay their utilities late (or at the last minute) are also primary targets for the predatory lending products that are sold at these retail outlets. High-cost check-cashing services and short-term, high-interest payday loans are typically the brunt of the business at these retail stores; a business that seems to prey on lower income consumers who may be under financial stress. Given these circumstances, requiring these people to go to these locations to pay their utility bills exposes them to these \"expensive products\" and may result in them utilizing a service they otherwise may not have considered using, such as a payday loan. But of course, the advantage to the check-cashing storefronts is obvious as their potential customer base is increased with no advertising whatsoever!\nWidespread use of check-cashing outlets didn't attract much attention until lately, presumably due to the fact that only recently have these businesses branched into high-interest payday loans. In California, about 2500 retail locations are licensed to make payday loans. According to the California Department of Corporations (who licenses payday lenders in the state), 952,000 payday loans were made in the state last year, with an estimated value of approximately $2.5 billion dollars.\nA nonprofit research organization entitled the \"National Consumer Law Center\" issued a report in June that identified 650 payday loan companies that accept payments for 21 utility companies across the United States. The report stated the these payday lenders were pushing their other products on the consumers who pay bills in person; who typically were \"low-income, minority, female, elderly\". It stated that they are \"prime targets for payday lenders\", and it urged utilities to sever those arrangements.\nThe utility companies will justify the shift to these storefront centers as a \"convenience to the consumer\". Don't buy it; they are also saving money, but do you think it is being passed on to the consumer? When is the last time the utility company lowered rates? We all know the answer to that one.\nArizona statutes regarding payday lending are available on-line at . For other states, look for your state legislature online under \"deferred presentment.\" For kicks, read what the payday loan industry has to say at: www.paydayandpaycheckloans.com\/\nIn Phoenix, Financial Fitness training is available at no cost from NHS Phoenix, Inc. Call 602-258-1659. END
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 TITLE: Find the Best RV Loans and Motor Home Loans CONTENT: How to Finance a Recreational Vehicle\n-------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 11, 2017_\nThe cost of gas and the economy have a direct effect on the sales of RVs. Why? Because a recreational vehicle is just that, recreational. And if you don't have the money to pay for expensive gas, you won't want to buy an RV. Even so, sales are still going on, even when the market bottom has dropped out.\nRecreational vehicles \"are at the swing end of discretionary spending because no one needs an RV, and certainly no one needs a new RV,\" said Ron Muhlenkamp, whose Muhlenkamp & Co. fund manages about $1.8 billion including shares of Winnebago, the biggest motor-home maker, and Thor, the maker of Airstream trailers. \nRegardless of your reasons for wanting to buy a motor home, you will probably need to take out a loan to help with your purchase. Even a used motor home can cost as much as $100,000. There are many different motor home loan options out there and in order to choose the best one, you should weigh the advantages and disadvantages of each one very well.\n### What are My Loan Choices?\nPurchasing your very own motor home can be an exciting experience, but this should not stop you from being as careful as possible when choosing from the many available motor home loans today. Just as with selecting a mortgage loan, you should also be very well-informed before making a decision on which motor home loan you want to use. For instance, you should know what the current interest rates are, so you can be sure you are being offered a good deal or not.\n### Motor Home and RV Loans\nIf you want the best deal on a motor home loan, it is recommended that you go to a professional motor home lending company. These companies are likely to know more about motor home loan options than other regular lending companies. It is easy to find these specialized lending companies if you make an online search. The loan programs can probably be explained to you at the RV dealership. Another good source of a loan is a credit union.\n### Home Equity Loans\nAnother way of gathering funds for your motor home is to apply for a home equity loan. With this loan, you will essentially be borrowing money equal to the amount of equity that you have built on your home.\n### The Application Process for Motor Home Loans\nApplying for any type of loan may take some time, especially if you do not take time to do the proper preparations. The best way to speed up the approval of your motor home loan application is to have your loans pre-approved. If this has been taken care of, you will just have to worry about choosing a good deal.\n### In Summary\nSelecting the best loan need not be difficult — all you have to do is make a side-by-side comparison of the interest rates and the APRs of each package. You should keep in mind that the loans with the lowest rates are not always the best choice because these rates might increase as the months go by. On the other hand, some loans may come with higher interest, but these could be fixed rates, which will not change even after many years.\nAs you can see, it is important to consider all factors when making your choice. If you are able to make the right decision, then you can enjoy your new motor home all the more. END
 TITLE: Information on Student Loans and College Degrees CONTENT: Student Loan and College Guide\n------------------------------\n###### Written by: Kristy Welsh\n### Article Series to Help You Navigate Through Student Loans and Help Choose a High Paying College Degree\n_Last Updated: October 3, 2017_\nMany college graduates find themselves deep in debt after they graduate. Never in our history has student loan debt surpassed credit card debt and it is not getting any better. Faced with a tough job market, lower starting salaries, and high unemployment, many of these recent grads will be paying off their college education for years and years and years.\nOur new article series, targeting student loans and college degrees to pursue, provides information to up and coming college students and their parents and hopefully will help you navigate through the maze of loans and grants that are available to college students.\n*   Types of Student Loans — It is stressful enough applying to a college but the big hurdle is finding the money to pay for tuition, room and board, and books. Get all the information you need on types of student loans available and how to apply for a student loan.\n*   Scholarship Money for College — One way to help pay for a college eduation is a scholarship. Here are 10 ways you can find FREE scholarship money for college, and minimizing debt and the years-long stress of paying it off.\n*   Federal Student Aid (FAFSA) — FAFSA is the largest federal student loan program offering grants, student loans, and work-study programs to help students pay for college. Get the facts.\n*   Avoid Student Loan Debt — Student loan debt has surpassed credit card debt in the U.S. and it is growning every year. There are ways to minimize student loan debt.\n*   Avoid Student Loan Default — After graduating from college, you now face a large student loan bill that needs to be paid on each and every month. Poor job market and low incomes have seen student loan defaults skyrocket. Learn how to avoid loan default.\n*   Public Servant Student Loan Forgiveness Program — Wipe out your student loan debt by volunteering or working as a public servant. Learn how this may work for you.\nCollege Degrees to Pursue and Help Finding a Job\n------------------------------------------------\n*   Best and Worst College Degrees by Salary — A higher starting salary equals paying off your student loan faster. See which college degrees have the highest and lowest salaries.\n*   College Degrees Worth the Student Loan Debt — Thinking about getting a college degree or maybe a master's degree? Make sure the degree you pursue will actually be worth the money you are going to spend. END
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 TITLE: Title Loans Turn Into a Costly Cycle CONTENT: Information on Title Loans — High Interest and Costly Title Loans\n-----------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 5, 2017_\nWhen you're in a pinch with nowhere to turn for help, title loans can seem a saving grace. Unfortunately, the nature of the beast is one that can prove your worst nightmare. Before you, or anyone you care about, takes out a title loan, get the facts and reconsider.\nWhat is a Title Loan?\n---------------------\nA title loan allows you to borrow money against the equity in your car. The lender, in turn, holds onto your title until you pay back the loan in full.\n### How Long Do I Have to Pay Back a Title Loan?\nThough most title loans come with contracts requiring you to pay the loan back within 30 days, it is remarkably easy to renew your contract. In other words, you could have an indefinite period of time to back the loan (i.e, an indefinite period of time for the lender to continue making money off you).\nHow is a Title Loan Different From a PayDay Loan?\n-------------------------------------------------\nA title loan is secured, whereas a payday loan is not. The only thing a lender holds against you with a payday loan is the post-dated check they will cash on the due date (unless you pay with cash prior to or on the due date). While that is disturbing enough, with a title loan, if you fail to pay on time, they can do more than cash a check; they can repossess your car. Many payday lenders in states where payday loans have been outlawed are now focusing their efforts on title loans instead. Unfortunately, this sends mixed messages to consumers, implying that payday loans are bad, but title loans are okay. On the contrary, they can be equally costly and predatory.\n### How Much May Be Borrowed Through a Title Loan?\nThe amount of your title loan is based on a percentage of the value of your car — a percentage that varies by lender.\n### What Are the Interest Rates on Title Loans?\nThough it varies by states, title loans can have annual interest rates of up to 300 percent.\n### Are There Any Other Fees Charged For Title Loans?\nIn addition to interest charges, title loans may include fees for initiating the loan, extending the loan, or late payments.\n### Can a Title Loan Be Renewed?\nYes, as mentioned above, title loans may be renewed indefinitely. While this may seem an attractive option in the moment, when you are struggling to pay back the loan, the long-term consequences of title loan renewal are quite costly. If you get caught up in this cycle of renewal, paying only the minimum required for extension, you could spend hundreds of dollars on interest fees in just a few months time with none of it ever going toward paying down the balance.\n### Can I Pay Off a Title Loan Early?\nThough you may be able to pay back your title loan early, you will probably still be required to pay the full interest rate for the full length of your contract.\n### How Much Will I Really End Up Paying For a Title Loan?\nBeyond the principle balance that must be paid back, your title loan will include interest charges and may include other fees. So, how much you end up paying depends on the amount of your loan, the interest rates and fees charged by your particular lender, and how long you have the loan. If you pay the loan off right away, and do not renew (or go back for more), your charges may be minimal in the grand scheme of thing. However, if you extend the loan, you could end up paying many times more for the loan than the original loan amount. For example, CreditSlips.org shares the story of a man who extended a title loan 40 times, paying over $10,000 in interest on a title loan of just $1,500.\n### Can a Title Loan Lender Really Repossess My Car?\nYes, they can repossess your car if and when you are late with your payment. It's estimated that as great as 10 percent of title loan borrowers lose their cars to repossession, an especially disturbing repercussion considering that 15 percent of borrowers take out the loan on their only means of transportation to and from work. END
 TITLE: Pros and Cons of Student Loan Consolidation CONTENT: Pros and Cons of Consolidating Your Student Loans\n-------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 3, 2017_\nWith student loan debt standing at over $1 trillion (yes, you read that right), just about anyone you talk to has taken out more than one student loan to pay for their college education. Having all of these different loans, different payments, different payment due dates to contend with, it is no wonder some of these payments get lost in the shuffle and wind up being late. Not only does this affect your credit score, but it also increases your overall interest payments.\nOne way to manage all of these loans is to consolidate them into one bill. Not only could this simplify your life, but it could reduce your overall monthly payment. But it is a good idea? Will combining them or refinancing them be beneficial for you? Below we have put together the pros and cons of consolidating private and federal student loans.\nTypes of Student Loans\n----------------------\nOur advice is going to differ between Private Loans and Federal Loans. Private student loans cannot, in general, be consolidated WITH federal student loans. The low interest rates on federal consolidated loans are not available to private education loans. On a private loan, you are really \"refinancing\" the loan instead of consolidating it.\nAdvantages to Consolidating Federal Student Loans\n-------------------------------------------------\nThe biggest advantage to consolidation is to simplify your repayments. If you have a student loan for each school year (freshman, sophomore, junior, senior years), putting these all together into one lump sum will have you making one payment each month — instead of four. This makes bill paying at the end of the month much easier and you are less apt to forget to pay on one of these loans.\nAnother advantage to consolidation is decreasing your monthly payment. When you consolidate, you restart the length of your loan, which means you can repay your debt over a longer time. This will reduce your monthly minimum payment, but it will extend the length of time your are paying on this loan. If you are struggling with meeting all of your monthly payments, having a lower one will surely help your budget.\nDisadvantages to Consolidating Your Federal Student Loans\n---------------------------------------------------------\nJust as with the advantages of consolidating your federal student loans, it is important to understand the potential disadvantages to consolidation. For example, you will have an option of taking longer to repay your loans, so a consolidation loan could cost you more over time since interest keeps adding up until you are done paying.\nAlso, if you consolidate your loans while you are still in school, you will lose your grace period. Therefore, it is important you weigh the pros and cons of consolidation carefully and to make sure consolidating your loans is in your best interest and worth the effort.\nConsolidating Private Student Loans\n-----------------------------------\nA private student loan is very different from a federal student loan. These types of loans are either categorized as a home equity loan or a private education loan. The interest charged on these loans is based on your credit score and the market place. So, if you are thinking of putting all of your private student loans together, you are basically refinancing your loans and will have to go through the entire loan process all over again.\nPrivate education loans tend to have interest rates that are in the same ballpark as home equity loans. If your private education loan has a variable interest rate, you might consider using a fixed rate home equity loan to pay off the private education loan, effectively locking in the interest rate.\nYou should not consolidate your federal student loans together with your private education loans. They should be consolidated separately, as the federal consolidation loans offer superior benefits and lower interest rates for consolidating federal student loans.\nStudent loan consolidation is a great opportunity to organize your financial life and allow you to focus on debt elimination. You must be disciplined and focused. Student loan consolidation typically makes good sense for most people. Research your options and dedicate yourself to paying off your debt, and you will be on your way to a healthy financial future.\nHere is more information regarding student loans. END
 TITLE: How to Avoid Student Loan Debt CONTENT: Student Loan Debt — Don't Be Fooled Into Thinking This is Good Debt\n-------------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 3, 2017_\nRecent statistics released show the average student loan debt for the class of 2016 was $37,172 — up 6 percent from the previous year. The average cost of tuition and fees for the 2020-2021 school year was $37,200 at private collages, $9,650 for state residents at public colleges, and $27,437 for out-of-state residents attending public universities. Soaring student loan debt is not really a great way to start off a seemingly bright college graduate future. A lot of families sign whatever kind of loan is put in front of them just so they can get their child a college education, without thinking about how in the world they are going to pay it back. But don't worry, a student loan is \"good debt\" — right? Not really.\nIf you are a parent reading this article, you need to seriously think about how you are going to pay off this student loan which could amount to $10,000, $50,000 or even as much as $100,000 by the time your child graduates. If you are a student thinking about taking out a student loan, are you prepared to be paying on this loan when you are well into your 40's? Below are some suggestions which may help both parties and give you some ideas on how you can forgo or minimize the amount of debt you will incur in student loans.\nAttend Community College First\n------------------------------\nOk, so all your friends are heading off to an out-of-state college this fall and you don't want to be left out. You also don't want to keep living with your parents knowing all of your friends will be living on some campus, enjoying the freedom of dorm life. But think of all the money you will be able to save living at home and attending a local college for the first two years. Take all of those basic requirements at half the cost and then transfer to a larger university to complete your degree. This can save upwards of $50,000 in tuition and room and board. You will be further ahead of your classmates when you graduate from college.\n### Plan Ahead Before Taking Out a Loan\nPrior to taking out a student loan, think about how long you are going to be paying on this loan and how much it is going to cost you per month in payments. Let's say you graduate from that prestigious college at the age of 21 with a student loan hanging over your head for $100,000. You can count on paying at least $1,000 a month toward that loan. If your starting salary at your new job is $30,000 a year, once you make your student loan payment, that does not leave you a lot left for living expenses. On top of that, think about all the interest you are paying — you are paying back a lot more than you borrowed — lots more!\nBesides the amount you will be paying back each month, think about how long you are going to be making these payments. You could be almost into your 40s before you have paid off your student loan. That is a long time to be making monthly payments on a student loan.\n### Supplement Your Education\nYou don't have to be in college — or even physically on campus — to earn college credits. You can take College Level Examination Program (CLEP) tests, such as AP exams, and community college classes while you are still in high school. By doing this, you might be able to complete your undergraduate degree in three years saving a whole year of tuition. You can also take online courses and exams from many colleges. This may lower your per-credit cost and reduce your tuition dramatically.\nAs stated before, living at home while you are going to college, instead of on campus, can save a lot of money. Room and board can typically add up to about half of your yearly tuition so why pay for this expense years down the road when you can live at home for free. Living at home may also facilitate getting a part-time job to supplement your college expenses. Earning a few hundred dollars a week and putting that into a savings account, can help pay off that student loan after you graduate.\n### Make Smart Choices\nImagine you are holding two college acceptance letters, and one of them if offering you a full ride. Which one do you choose? This may go without saying but let's hope you go to the school offering the full ride. Maybe it is not the college you were hoping to attend, but, in the long run will it really matter? You can graduate debt-free or graduate $100,000 in debt, which scenario sounds better - that is a no brainer!\nProbably one of the most important things to consider prior to heading off to college is, \"What kind of degree am I going to pursue\" and \"Will there be jobs for me once I do graduate from college?\" Be prepared prior to entering college so you won't waste time and money taking classes you won't need or pursuing a degree where there are not going to be many jobs available once you get out. Of course nothing is for sure, but you can at least do some research on a vocation so you can be reasonably sure there are going to be jobs available. No sense spending four years in college and getting $75,000 in debt to find out there is no demand in the market for your type of degree. It is always a good idea to talk to a job counselor or read a few articles relating to job trends.\nIn this tight economy, you have to make sure you make smart choices, understand what you are getting into when taking out a student loan, and plan ahead by doing some research on the job market before you head off to undergraduate or graduate school. A little due diligence will pay off in spades. END
 TITLE: How to Avoid Student Loan Debt CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Frequently Asked Questions About Small Business Loans CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: October 17, 2017_\nIf you're planning to start a business or if you are an owner of a small business, you know how difficult it is to raise working capital for day to day expenses and expansion. In order to grow your business, you need to expand, and to expand, you need money. It is a vicious cycle — but if it works out, you can reap the rewards of a thriving company.\nThere are a lot of options available to business owners but knowing what are the good ones and which are the bad ones, can make or break your business. Below are some questions we have received from our readers — hopefully these will help you in your decision making for your business.\nWhat is an SBA Loan?\n--------------------\nSBA loans are government-backed loans available through commercial lenders who follow SBA guidelines. SBA works with lenders to provide a partial guarantee for loans, reducing lenders’ risk, increasing small business lending, and helping expand small business economic activity. The SBA does not make direct loans to small businesses, except for the disaster loan program, to repair physical and economic damage caused by a declared disaster. \n### What are the main reasons small businesses seek financing?\nSmall businesses borrow for four principal reasons: 1) starting a business, 2) purchasing inventory, 3) expanding the business, and 4) strengthening the firm. Firms choose different means of financing depending on the intended purpose. \n### How much can I borrow?\nSBA does not set a minimum loan amount. The average loan extended to U.S. businesses in 2016 ranged from $671,000 to $850,000, according to data from the Federal Reserve. Depending on the type of loan and the lender, averages may range from $13,000 to $1.2 million.\n### What are the fees and interest rates associated with an SBA loan?\nLoans guaranteed by the SBA have fees bases on the loan's maturity and the dollar amount guaranteed, not the total loan amount. On loans under $150,000 made after October 1, 2013, the fees will be set at zero percent. On any loan greater than $150,000 with a maturity of one year of shorter, the fee is 0.25 percent. On loan with maturities of more than one year, the normal fee is 3 percent on loans $150,000 to $700,000 and 3.5 percent on loans of more than $700,000. There is also an additional fee of 0.25 percent on any guaranteed portion of more than $1 million.\nThe actual interest rate for a 7(a) loan guaranteed by the SBA is negotiated between the applicant and lender and subject to the SBA maximums. The maximum rate is a base rate and an allowable spread.\n### Aren't SBA guaranteed small business loans only for businesses that are not creditworthy by traditional banking standards?\nOn the contrary, SBA financing will not be extended to any business that does not demonstrate the ability to repay debts. The longer terms allowed with SBA financing can enable your company easier debt qualification based on lower payments.\n### What else do I need to know?\n*   Debt to worth ratio should generally not exceed 4:1\n*   Sufficient cash flow to meet proposed debt service\n*   Personal guarantees are required\n*   Life and hazard insurance is required\n*   Current appraisals are required on real estate collateral\n### What are some common myths about SBA financing?\n*   It does not take 6 to 9 months to get funded. On average, it takes 45 to 60 days to process an SBA loan from submission to final funding.\n*   You do not have to be turned down by a bank prior to applying for an SBA loan.\n### Can SBA loans be used to refinance existing business debt?\nYes, in most cases.\n### Can SBA financing be used for construction?\nYes, as long as the business will occupy at least 67 percent of the new building. The construction loan will convert to a fully amortized loan at the end of the construction. If an existing building is financed or refinanced, your business must occupy at least 51 percent of the facility.\n### Are there any special 7(a) loans available?\nSBA offers several special purpose 7(a) loans to aid businesses that have been impacted by NAFTA, provide financial assistance to Employee Stock Ownership Plans, and help implement pollution controls. Here is a list of the special programs available. For more detailed information, go to SBA.gov.\n*   CAPLines — This program is designed to help small businesses meet their short-term and cyclical working capital needs.\n*   SBA Export Loan Program — SBA is helping small business exporters by providing a number of loans designed to help develop or expand export activities.\n*   Advantage Loans — SBA guarantees three types of 7(a) business loans; Small\/Rural Lender Advantage Loan, Community Advantage Loan, and Small Loan Advantage. END
 TITLE: Best and Worst Starting Salaries by College Degree CONTENT: Best and Worst Bachelor's Degrees by Starting Salary\n----------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 1, 2017_\nThere’s no getting around it — college education is expensive. A four-year degree at a public university costs, on average, $37,343, while an education at a private school will set you back $121,930. While statistics show that a college degree will undoubtedly open doors and increase your earning potential, you need to choose your degree carefully to ensure you’re making a wise investment.\nEver wonder which college degree can get you the best salary the minute they hand you the diploma? The answer lies within the realms of engineering and technology. College graduates in the class of 2016 starting salaries were low- to mid-$60,000s for engineers and the mid-$40,000s for humanities majors.\nWhile many factors contribute to job satisfaction, key among them is monetary compensation. This is especially true if you spent four years of your time, and money, in college studying for your chosen field. Hopefully, the work is rewarding in and of itself, but if you struggle to maintain a comfortable standard of living for you and your family, you may regret the trade-off. So if you or someone you know is weighing college degree options, the following list of the best and worst degrees by starting salary may be worth a browse.\n_Information from the graduating class of 2016 as reported by Forbes Magazine_\n**TOP 10 BACHELOR'S DEGREES**\n**STARTING SALARY**\nChemical Engineering\n$  63,389\nComputer Engineering\n$  63,313\nElectrical Engineering\n$  61,173\nSoftware Design\n$  60,104\nMechanical Engineering\n$  59,681\nComputer Programming\n$  58,995\nComputer Science\n$  56,974\nCivil Engineering\n$  55,879\nManagement Information Systems\n$  51,690\nConstruction\n$  49,672\n**WORST BACHELOR'S DEGREES**\n**STARTING SALARY**\nHistory\n$38,361\nEnglish\n$38,303\nPsychology\n$38,079\nSpecial Education\n$38,002\nElementary Education\n$37,803\nAnthropology\/Sociology\n$37,672\nSocial Work\n$37,115\nPre-K Education\n$35,626\nKindergarten Education\n$35,626\nIs the degree of your dreams among the worst by salary? By all means, do not allow that to dissuade you. The truth is, the more passionate you are about a subject, the more adept you will probably be at its mastery. And the better you are at what you do, the greater your opportunities for advancements in all sorts of unforeseen, lucrative directions. On the flip side, if you're up in the air about your field of focus, why not consider a degree program that is the most lucrative among them? END
 TITLE: Best and Worst Starting Salaries by College Degree CONTENT:    |  |  |  | \n: . END
 TITLE: Automating Your Student Loan Payment Right For You? CONTENT: Automate Student Loan Payments: Direct Debit vs Recurring Bill Pay\n------------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 17, 2017_\nMost of us forget to pay a bill now and then, but that’s not a risk worth taking with student loans that are already so stressful and expensive. Fortunately, you can eliminate this risk by automating your student loan payments. You have two choices. Here they are, including the pros and cons of each.\nUsing Direct Debit to Make Student Loan Payments\n------------------------------------------------\nWhen you set up direct debit, you are authorizing your student loan servicer to automatically withdraw your payment from your bank account every month.\n### _Pros_\n1) Most student loan providers offer a .25 percent interest rate reduction when you make payments via direct debit every month.\n2) You’ll never forget to make a payment. You can pretty much set it and forget it.\n3) You can choose a recurring payment amount that is more than your minimum. Even as little as an extra $5 or $10 a month can add up over the life of the loan.\n### **_Cons_**\n1) It’s hard to cancel. You will likely find it requires a written request several business days prior to the scheduled transaction. Check with your student loan servicer for the policy specific to them.\n2) If you want to pay a _different_ amount every month — sending in extra when you can — you’ll find that you can’t adjust the direct debit with your servicer. Your regular debit will come out as scheduled and whatever extra you want to pay will have to be sent separately.\n3) While you won’t forget to make the payment, you could forget to make sure the money is in there to cover it.\n**Using Recurring Bill Pay**\n----------------------------\nWhen you set up recurring bill pay, you do so through your bank, authorizing them to make your payment to your student loan servicer every month.\n### **_Pros_**\n1) You’ll never forget to make a payment. As with direct debit, you can set it and forget it.\n2) Recurring bill pay gives you more control over your payments.\nThe last thing you want to do is cancel a student loan payment, but if you find yourself in a tight spot, it’s nice to know you have the option to make a change last minute. For instance, Wells Fargo gives you up until 7 pm on the Send On date to cancel or change it. Check with your bank for the cancellation policy specific to them.\nOn the flip side, you may realize last minute that you have a little _extra_ to put toward your loan one month, in which case you can go in and increase the payment accordingly.\n### **_Cons_**\n1)  You won’t qualify for the .25 percent interest rate reduction available if you set up direct debit auto pay through your student loan servicer. So you could be missing out on hundreds of dollars in savings over the life of your loan.\n2)  As with the direct debit option, while you won’t forget to make the payment, you could forget to make sure the money is in there to cover it.\n### **How to Set It Up**\nTo set up direct debit, go to your student loan servicer’s website and look for the direct debit option. If you don’t see it, give them a call. If, however, you decide to go with the bill pay option through your bank, you should be able to set that up through your online account.\n### **Bottom Line**\nIt’s hard to see the benefits of bill pay outweighing the money-saving .25 percent interest rate reduction of auto pay. Again, it could cut your student loan debt down by hundreds of dollars over the life of the loan. END
 TITLE: Master's College Degrees Worth the Student Loan Debt CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: August 1, 2017_\nLet's get the obvious out of the way first — any bachelor's degree is better than none. A high school graduates earns 67 percent of what a college graduate will earn. The tougher question, and the one that will be addressed here, is it worth going on to pursue an advanced degree? Though conventional wisdom holds that a master's degree will equate to a higher salary, that is not always the case.\nOn average, those with master's degrees earn more than $72,000 a year — about $20,000 more than an undergrad but it is degree specific. For instance, if you go back to school for a master's in meteorology, it will only earn you an average of 1 percent more than you were making with your undergrad degree. That said, a master's degree in health and medical preparatory programs could garner you a 190 percent salary increase after graduation.\nIf you are considering going back to school for your master's, peruse the following list of top-earning degrees and see if anything catches your eye. They are listed in order of return on the investment, including a percentage of how much more you can expect your salary to increase after graduation. This is information based on an analysis of census data collected by Georgetown University's Center on Education and the Workforce, as outlined by Loans.org.\nMaster's Degrees Worth the Debt\n-------------------------------\n1.  Health and Medical Preparatory Programs, 190 percent salary increase\n2.  Social Sciences, 134 percent salary increase\n3.  Zoology, 123 percent salary increase\n4.  Molecular Biology, 115 percent salary increase\n5.  Public Policy, 107 percent salary increase\n6.  Biology, 106 percent salary increase\n7.  Biochemical Sciences, 101 percent salary increase\n8.  Chemistry, 93 percent salary increase\n9.  Pre-Law, 81 percent salary increase\n10.  Physiology, 78 percent salary increase\nMaster's Degrees NOT Worth the Debt\n-----------------------------------\n1.  Meteorology, 1 percent salary increase\n2.  Studio Arts, 3 percent salary increase\n3.  Petroleum Engineering, 7 percent salary increase\n4.  Oceanography, 11 percent salary increase\n5.  Mass Media, 11 percent salary increase\n6.  Advertising\/Public Relations, 12 percent salary increase\n7.  Pharmaceutical Sciences, 13 percent salary increase\n8.  Forestry, 15 percent salary increase\n9.  Computer Engineering, 16 percent salary increase\n10.  Miscellaneous Education, 16 percent salary increase\nIf you do not see your area of interest listed above, here are some steps you can take to determine if the degree you have in mind is worth the debt:\n*   Find out how much graduates with this particular degree usually make their first year.\n*   Find out how much it will cost you to complete the degree program.\n*   To complete the degree program, determine if you only need to borrow as much money as you will earn your first year after graduation. This is key, as most student loan payment programs last 10 years. This means you will need to set aside 10 percent of your yearly income to pay off the loans. If you borrow more, you could run into trouble, as it will be tough to put more than 10 percent of your income toward paying off student loan debt. This is precisely what, unfortunately, leads to so many graduates going into student loan default.\nAll of that said, if you have your heart set on a graduate degree program that has a very little return on your investment, go for it. Just find a way to fund tuition in other ways, be it scholarships or grants. But do your best to follow the 10 percent rule — again, only take out as much student loan debt as you can pay off within 10 years, i.e., the amount you expect to earn your first year after graduation. END
 TITLE: Master's College Degrees Worth the Student Loan Debt CONTENT:    |  |  |  | \n: . END
 TITLE: Can You Qualify for a Small Business Loan? CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: October 11, 2017_\nThe U.S. Small Business Administration, SBA, offers varied programs to small business owners. These programs provide financial assistance and help owners obtain the working capital they need to start or expand their business. The SBA does not make direct loans to small businesses, rather, it sets the guidelines for loans, which are then made by its lending partners. The SBA guarantees these loans will be repaid, thus eliminating some of the risk to the lending partners.\nThe following are the guidelines set by the SBA to determine whether your business is considered an eligible small business.\nEligible Businesses\n-------------------\n*   Operate for profit.\n*   Be small, as defined by SBA.\n*   Be engaged in business in the United States or its possessions.\n*   Have reasonable invested equity.\n*   Use alternative financial resources before seeking financial assistance.\n*   Be able to demonstrate a need for the loan proceeds.\n*   Use the funds for a sound business purpose.\n*   Not be delinquent on any existing debt obligations to the U.S. government.\nIneligible Businesses\n---------------------\nThe following list of business types are not eligible for assistance because of the activities they conduct:\n*   Financial businesses primarily engaged in the business of lending, such as banks, finance companies, payday lenders, some leasing companies and factors (pawn shops, although engaged in lending, may qualify in some circumstances).\n*   Businesses owned by developers and landlords that do not actively use or occupy the assets acquired or improved with the loan proceeds (except when the property is leased to the business at zero profit for the property's owners).\n*   Life insurance companies.\n*   Businesses located in a foreign country (businesses in the U.S. owned by aliens may qualify).\n*   Businesses engaged in pyramid sale distribution plans, where a participant's primary incentive is based on the sales made by an ever-increasing number of participants.\n*   Businesses deriving more than one-third of gross annual revenue from legal gambling activities.\n*   Businesses engaged in any illegal activity.\n*   Private clubs and businesses that limit the number of memberships for reasons other than capacity.\n*   Government-owned entities.\n*   Businesses principally engaged in teaching, instructing, counseling or indoctrinating religion or religious beliefs, whether in a religious or secular setting.\n*   Consumer and marketing cooperatives (producer cooperatives are eligible).\n*   Loan packagers earning more than one third of their gross annual revenue from packaging SBA loans.\n*   Businesses in which the lender or CDC, or any of its associates owns an equity interest.\n*   Businesses that present live performances of an indecent sexual nature or derive directly or indirectly more 2.5 percent of gross revenue through the sale of products or services, or the presentation of any depictions or displays, of an indecent sexual nature.\n*   Businesses primarily engaged in political or lobbying activities.\n*   Speculative businesses (such as oil exploration).\nSBA Loan Terms\n--------------\nSBA loan terms are calculated based on your use of proceeds. The following list shows what loan terms are available based on your use of proceeds.\n*   **New building purchase:** 25 years\n*   **Building improvements:** 20 years\n*   **Mortgage refinance:** 20 years\n*   **Machinery and equipment purchase:** 10 years\n*   **Leasehold improvements:** 10 years\n*   **Other debt refinance:** 7years\n*   **Inventory:** 7 years\n*   **Working capital:** 7 years END
 TITLE: Can You Qualify for a Small Business Loan? CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Can You Qualify for a Small Business Loan? CONTENT:    |  |  |  | \n: . END
 TITLE: Rural Business Loans - B & I Guaranteed Loan Program CONTENT: What is a Business & Industry Loan and Does Your Business Qualify?\n------------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 1, 2017_\nIf your business is located in a rural community, you may qualify for a special type of loan. The U.S. Department of Agriculture (USDA) maintains a Business and Industry (B&I) Guaranteed Loan Program. The USDA provides guarantees of up to 80 percent of a loan made by a commercial lender.\nThe Rural Business-Cooperative Service (RBS) is one of three agencies within USDA responsible for administering various economic development programs to rural communities in the United States. Because these three agencies are closely aligned, they are commonly referred to as the USDA Rural Development, Business & Cooperative Programs.\nThe mission of the RBS is \"to enhance the quality of life for rural Americans by providing leadership in building competitive businesses including sustainable cooperatives that can prosper in the global marketplace.\"\nThey meet these goals by:\n*   Investing financial resources and providing technical assistance to businesses and cooperatives located in rural communities.\n*   Establishing strategic alliances and partnerships that leverage public, private, and cooperative resources to create jobs and stimulate rural economic activity.\nIn addition to supporting rural business, economic, and cooperative development, the Agency has become increasingly involved in renewable energy and value-added agriculture since the enactment of the 2002 Farm Bill. Here are the guidelines set by the Rural Business Cooperative Service (RBS) to determine whether your business is considered an eligible small business for a Business & Industry (B & I) loan.\nHow is Rural Area Determined?\n-----------------------------\nNormally, projects seeking a B&I guaranteed loan need to be located in eligible rural areas, which include all areas other than cities or towns larger than 50,000 people and the contiguous and adjacent urbanized area of such cities or towns.\nImpact on Local Jobs\n--------------------\nRBS begins determining eligibility for a B & I loan based on your loan request’s impact on jobs in the rural community. RBS priorities are, in order from highest to lowest, as follows:\n*   Saving existing jobs.\n*   Expanding existing businesses.\n*   New plant location or new business start-up.\n*   Business which will generate little or no permanent employment other than the entrepreneur.\nQuality of Loan\n---------------\nRBS looks for quality loans that will support a stable employment source. The factors that RBS reviews to determine loan quality include:\n*   **Equity:**  10 to 25 percent down may be required at the loan closing, depending upon the risk factors presented by your request.\n*   **Profitability:**  Your application should show historic cash flow adequate to service the debt.\n*   **Management:**  Management must demonstrate experience in the industry and competence in production, marketing, finance and personnel management.\n*   **Collateral:**  Collateral must be sufficient to secure the loan.\n*   **Guarantees:**  Personal guarantees from owners, major stockholders and\/or partners are required.\nUse of Proceeds from a B&I Loan\n-------------------------------\nThis loan can be used for:\n*   Working Capital\n*   Machinery and Equipment\n*   Buildings and Real Estate\n*   Certain Types of Debt Refinancing\nYour B & I loan request will be considered _**ineligible**_ if you intend to use proceeds to:\n*   Relocate jobs or expand a business where an excess of supply of the goods or services already exists.\n*   Pay any distribution to an owner or beneficiary who will continue in the business.\n*   Transfer the ownership of a business unless the transfer is necessary to keep the business from closing, or if it will expand job opportunities.\n*   Pay off creditor in excess of value of collateral.\n*   Assist government employees and military personnel owning 20 percent or more of the business.\n*   Finance any illegal business activity.\n*   Finance any line of credit.\n*   Finance agricultural production with the exception of specialized crops such as forestry, commercial nurseries, aquaculture, hydroponics, mushrooms or commercial custom feed lots.\nBusiness Type\n-------------\nIf your business falls within one of the following categories, it is _**ineligible**_ for a B & I loan.\n*   Lending and investment institution or insurance company.\n*   Charitable or educational institution.\n*   Church, church-sponsored or fraternal organization.\n*   Community antenna television service or facility.\n*   Business establishment when more than 10 percent of annual gross revenue comes from legalized gambling activities, such as a racetrack.\n*   Golf course.\nLike all SBA loans, you will need to go to through your local bank or financial institution to apply for a B&I loan. If you have any questions, go to the SBA.gov website. END
 TITLE: Rural Business Loans - B & I Guaranteed Loan Program CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Rural Business Loans - B & I Guaranteed Loan Program CONTENT:    |  |  |  | \n: . END
 TITLE: Options Available to Avoid Defaulting on Student Loans CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: October 11, 2017_\nAs recently as the early 1990s, most students did not take out college loans. Today, nearly 71 percent of all college students borrow money to pay for college. The typical student borrower graduating with the class of 2016 left college with an average debt of $37,172. And, according to a recent study, recent college graduates are defaulting on federal student loans at the highest rate in nearly two decades — one in seven borrowers defaulting within the first three years.\nIf you are buried deep in student loan debt, you are not alone, and there are things you can do to avoid defaulting on your loans. Try any one of the tips outlined below before you throw in the towel and default on one or more of your student loans. Your credit score will thank you.\nOptions to Avoid Defaulting on Your Student Loans\n-------------------------------------------------\nBefore you call it quits, here are some ways you can avoid defaulting on your loans:\n*   **Pay the loan in full.** Call and get payoff amounts on your loans and pay them off in full, if you can.\n*   **Discuss a repayment plan with your lender**. You have several ways to repay your loan by making monthly installment payments on your account.\n    *   Standard Repayment — fixed monthly payments of at least $50 with up to 10 years to repay in full.\n    *   Graduated Repayment — monthly payments will begin low and increase gradually over time.\n    *   Extended Repayment — lowers monthly payments over a longer period of time and has a predictable payment schedule.\n    *   Income Contingent and Income-Sensitive Repayment — monthly payments are calculated as a percentage of your income.\n*   **Consolidate your student loans**\n*   **Rehabilitate your student loans**\n*   **Determine if you qualify for payment relief**\nWhat is Student Loan Consolidation?\n-----------------------------------\nStudent loan consolidation pays off the outstanding combined balances for one or more federal student loans and creates a new single loan with a fixed interest rate. One lender holds the loan and you make one monthly payment. The repayment terms depend on the amount consolidated, the type of payment plan you choose, and the length of the loan term. The following loans can be consolidated:\n*   Stafford Loans\n*   PLUS Loans\n*   Perkins Loans\n*   Health Professions Student Loans (HPSL)\n*   Health Education Assistance Loans (HEAL)\n*   Nursing Student Loans (NSLP)\n*   National Direct Student Loans (NDSL)\n*   SLS Loan (formerly ALAS Loans)\n*   Federal Insured Student Loan (FISL)\nHow to Rehabilitate a Loan\n--------------------------\nUnder the loan rehabilitation program, you and your loan holder (or the Department of Education if you have a defaulted Direct Loan) agree on a reasonable and affordable payment plan for nine payments over a ten-month period. In most cases, you sign a rehabilitation agreement specifying payments and responsibilities. A loan is rehabilitated only after you have voluntarily made the agreed-upon payments on-time and the loan has been purchased by a lender. Outstanding collection costs may be added to the principal amount. Loan rehabilitation offers the following:\n*   The nine voluntary on-time payments you make while rehabilitating your loans will be subtracted from the maximum repayment term of your loan.\n*   Rehabilitating your loan(s) removes the default status of previously defaulted loans at completion of the process. National credit bureaus are notified when the loan is no longer considered in a default status.\n*   After the loan has been rehabilitated, you regain the balance of all benefits of the Title IV loan program, including any remaining eligibility for deferment or forbearance, from the date of the rehabilitation.\n*   Repayment plans available to other borrowers with the same loan type may be available to you, depending on your qualifying status.\nPlease keep in mind:\n*   The amount of your monthly payment after rehabilitation may be more than the amount you paid while you were rehabilitating your loans.\n*   Any _interest_ outstanding at the time your loan is rehabilitated will be added to your current outstanding principal balance, increasing the total amount you owe. Collection costs may also be added to your principal balance, increasing the total amount you owe.\n*   Delinquencies reported before the loan(s) defaulted will not be removed from your credit report.\nMake sure that you understand the differences in loan rehabilitation for the different loan programs. For questions on rehabilitation of Perkins loan, please contact your school directly to establish an agreement. For FFEL loans, at the completion of the schedule of rehabilitation payments, a participating lender must agree to purchase the defaulted loan and assume _servicing_ of your loan. You must continue making payments during this time.\n### How to Determine if You Qualify for Payment Relief\nIf you have trouble making your student loan payments, contact your loan servicer immediately. You may qualify for some form of payment relief. And it's important to take action before you incur late fees or your credit is affected.\n### Types of Payment Relief\n*   A deferment is a temporary suspension of loan payments for specific situations such as returning to school, unemployment, disability, or military service. You have a right to defer repayment for certain defined periods.\n*   Forbearance is a temporary postponement or reduction of payments for a period of time, as you and the lender or holder of your loan may agree, because you are experiencing financial difficulty.\n*   Graduated payment plans provide short-term relief through low, interest-only payments followed by standard principal and interest payments.\n*   Income-sensitive or income-contingent payment plans offer payment relief with payments that are a specific percentage of your gross monthly income.\n### Federal Interest Subsidies\nThese options will provide you with payment relief and help you maintain a good credit rating. If you qualify and apply for federal interest subsidies on your loan during deferments, you loan balance will not increase during the deferment period because the government will be making interest payments on your behalf. However, if you do not qualify for federal interest subsidies on your deferment, or if your loan is in forbearance, your loan balance will increase by the amount of unpaid accrued interest.\n### Problems with Obtaining Payment Relief\nIt is import to act quickly if you find your student loan payments hard to handle. If you default, or fail to make your loan payments as scheduled, you risk very serious consequences. Your school, the financial institution that made or owns your loans, your state education loan guarantor, and the federal government can all take action to recover the money you owe. They may notify national credit bureaus of your default, negatively affecting your credit record. You could find it difficult to borrow money to buy a car or a house, and you would be ineligible for additional federal student aid if you decided to return to school. The financial institution that owns your loans may ask your employer to deduct loan payments from your paycheck (garnish your wages), and your state and federal income tax refunds could be withheld (tax offset) and applied toward the amount you owe. Also, delayed payment and collection activities could increase the cost of your loan. END
 TITLE: Options Available to Avoid Defaulting on Student Loans CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Options Available to Avoid Defaulting on Student Loans CONTENT:    |  |  |  | \n: . END
 TITLE: Student Loan Public Service Forgiveness Program CONTENT: Do You Qualify for the Public Service Loan Forgiveness Program?\n---------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 11, 2017_\nThe College Cost Reduction and Access Act (CCRAA) created a loan forgiveness program for borrowers who hold public service jobs. Borrowers who meet the requirements outlined in the law may be eligible to have a portion of their student loan debt forgiven. The CCRAA, which went into effect in October 2007, provides for the cancellation of the remaining balance due on eligible student loans after the borrower has made 120 monthly payments on those loans, while employed in specific public service fields.\nPresident George W. Bush signed the CCRAA into law on September 27, 2007. The legislation was enacted to make college more affordable for low- and moderate-income students by phasing in a number of positive changes. The benefits added by the CCRAA take many forms, including increased grants, lower interest rates, and loan forgiveness for public servants. The Act was generally effective October 1, 2007; however, specific provisions of the Act have later effective dates.\n### The Provisions of the Act\n**Effective Dates —** Borrowers must have made 120 monthly payments after October 1, 2007 in the Ford Federal Direct Loan Program. Effectively, this means that loan balance cancellations will not be granted until October 2017 at the earliest.\n**Eligible Loans —** Any non-defaulted loan made under the Direct Loan Program, which includes the following types of loans:\n*   Federal Direct Stafford\/Ford Loans (Direct Subsidized Loans)\n*   Federal Direct Unsubsidized Stafford\/Ford Loans (Direct Unsubsidized Loans)\n*   Federal Direct PLUS Loans (Direct PLUS Loans); for parents and graduate or professional students\n*   Federal Direct Consolidation Loans (Direct Consolidation Loans)\n**NOTE:**  Borrowers may have to meet additional eligibility requirements to consolidate these loans into a Direct Consolidation Loan. To determine the type of loan you have, you can access the National Student Loan Data System.\n**Eligibility of Other Federal Loans —** Although loan cancellation is only available for loans made and repaid under the Direct Loan Program, borrowers with loans made under other federal student loan programs may be eligible if they consolidate those loans into the Direct Loan Program. Loans that are eligible for consolidation into the Direct Loan Program include:\n*   Federal Family Education Loans (FFEL) (includes Stafford, PLUS, and Consolidation Loans).\n*   Federal Perkins Loans.\n*   Certain Health Professions and Nursing Loans.\n**Eligibility Requirements\/Repayment Plans —** To be eligible to have remaining balances cancelled, the borrower must not be in default on the loan(s) and must have made 120 monthly payments on the eligible loan(s) beginning after October 1, 2007. (Earlier payments do not count toward meeting this requirement). Payments must have been made under any one or a combination of the following Direct Loan Program repayment plans:\n*   Standard Repayment Plan with a 10-year repayment period.\n*   Income Contingent Repayment (ICR) Plan.\n*   Income Based Repayment IBR Plan.\n*   Other Direct Loan repayment plans, but only payments that are at least equal to the amount that would be required under the 10 year Standard Repayment Plan may be counted toward the required 120 payments.\n**Eligibility Requirements for Employment in a Public Service Job —** To be eligible to have remaining balances cancelled, the borrower must:\n*   Have been employed in a public service job during the (entire) period in which the borrower made each of the 120 monthly payments.\n*   Must be employed in a public service job at the time of loan forgiveness.\n### What Constitutes an \"Eligible\" Public Service Job?\nThe act defines eligible public service jobs as those full-time jobs in these fields:\n*   Government\n*   Military service\n*   Public health\n*   Public library sciences\n*   Public education\n*   Public child care\n*   Public service for the elderly\n*   Public service for individuals with disabilities\n*   Public interest law services\n*   Emergency management\n*   Public safety\n*   Law enforcement\n*   School based library sciences\/other school based services\n*   Certain tax-exempt organizations\n*   Faculty teaching in high-needs areas (TBD by the Secretary)\n*   Faculty member at a tribal college or university (full-time)\n### Additional FAQs  \n**If my loans are held by a private loan company, I won't qualify for this program — right?**\nThis is true, however, beginning July 8, 2008, the law allows students with Federal student loans with private companies to consolidate or reconsolidate into the Direct Loan Program in order to qualify for the public service loan forgiveness.\n**I do not qualify for either income contingent or income based repayment. Will I qualify for this program?**\nBorrowers who remain in the standard repayment plan will have no need for forgiveness after 10 years of payments because their loan will have been paid in full. Payments made under extended repayment plans will be ineligible if they are less than the amount calculated under the standard 10 year repayment plan. The law only allows public servants with salaries low enough to qualify for income based or income contingent payment plans to be eligible for forgiveness of debt (over and above the amount that can be paid off in 10 years).\nIn summary, only borrowers with a high debt-to-income ratio or consistently low income will qualify for loan forgiveness under this program. It is not designed to bail out those with the means to pay their debt responsibly. And, with all new legislation, there may certainly be tweaks and further clarification provided as time goes on. For more information, you can visit the National Association of Financial Aid Administrators or any of the sources linked within this article. END
 TITLE: A-Paper Loan or Prime Mortgage Loans for Excellent Credit CONTENT: Could You Qualify for An \"A\" Paper or Prime Loan?\n-------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 14, 2017_\nPlease Note: We are not a bank nor do we give out loans. Each bank has its own set of rules to decide whether or not to give a person a loan. The criteria given below is meant to be used as a guideline only.\nAn \"A paper loan\" is another term for a prime loan. This type of loan is for a person with a credit score of 680 or higher, can fully documents his\/her income and assets, their debt to income ratio does not exceed 35 percent, has two months of mortgage payments in reserves after closing, and can injects at least 20 percent equity into the transaction.\n**\"A\" Credit**\nThis means:\n*   You have not been late on a mortgage or rent payment in the last two years.\n*   You have not been late on a car payment in the last two years.\n*   You have not been more than 30 days late on a credit card payment more than twice in the last two years.\n*   You have had no collections (other than a small medical collection) or any judgments in the last two years.\n*   Your credit score is good to excellent, perhaps 680 or better.\n*   An A paper borrower must have at least two months mortgage payments in \"liquid reserves.\" This can be in a checking, savings, investment, or even retirement accounts at any financial institution.\nSee more details on deciding if you have A credit.\n**Sufficient Income**\nThis means:\n*   Your total mortgage payments per month are equal to 30 percent or less of your gross monthly income.\n*   Your total payments per month (not including insurance, utilities, food) are equal to or less than 36 to 41 percent of your gross monthly income.\n*   You must be able to prove your income. Examples: tax returns, bank statements, pay stubs.\n*   In order to count your full income, you must have been employed in the same line for work for the last two years.\n**Stability**\nAlthough credit and income are the biggest two deciding factors on whether or not to give someone a loan, stability plays a part. Good stability means:\n*   You have been in the same line of work and\/or job for 2 or more years.\n*   You have lived in the same house or apartment for more than 2 years.\n**Down Payment**\nYou cannot buy a house without making a down payment. Typically you need to have saved up an amount equal to 3.5 percent of the price of the home at the minimum — and this is for an FHA loan to qualify. Some loan programs even allow the down payment and\/or closing costs to be paid for through a monetary gift from a relative, such as the FHA program.\nThe decision whether or not to give you a loan is not dependent on any one of the above factors alone, but on all three. For instance, if you have excellent credit, but no verifiable income, no one will give you an A type loan on a new home (and perhaps no loan period, in today's market). You may still be able to get a loan with less than A credit, but the application process will be harder and the interest rate and points will probably be higher. More at Brokers vs. Bankers. END
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 TITLE: What is a Loan Modification and Can it Help You? CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: August 14, 2017_\nWhether it's called a loan modification, mortgage modification, restructuring, or workout plan, it's when a borrower who is facing great financial hardship, having difficulty making their mortgage payments and is facing foreclosure, works with their lender to change the terms of their mortgage loan to make it affordable. The workout plan varies by lender, but changes could include temporary or permanent changes to the mortgage rate, term and monthly payment of the loan, the past due amount could be rolled into the loan, and the new balance re-amortized.\nHome Affordable Modification Program\n------------------------------------\nIn January of 2009, President Obama unveiled the \"Making Home Affordable Program\" which is comprised of two programs: one for loan modifications and one for refinancing loans. The loan modification program is called the Home Affordable Modification Program (HAMP). It is designed to reduce mortgage payments homeowners pay per month to sustainable levels. The refinance plan is called the Home Affordable Refinance Program (HARP).\nWho is Eligible for a HAMP Loan?\n--------------------------------\nTo qualify, you must:\n*   Originated your mortgage before Jan. 1, 2009.\n*   Your property has not been condemned.\n*   You owe up to $729,750 on your primary residence or one-to-four unit rental property.\n*   You are struggling to make your mortgage payments due to financial hardship.\n*   You are delinquent or in danger of falling behind on your mortgage.\nWho is Not Eligible for a HAMP Loan?\n------------------------------------\nThose of you who bought homes for investment purposes. All homes must be owner\/occupied. Also, if you cannot afford the home due to job loss or a complete inability to pay, you will not be eligible. Also, mortgages with amounts above the conforming loan limits would not be eligible.\nAre There Other Loan Modification Programs Out There?\n-----------------------------------------------------\nHAMP, HAFA (for short sales) & 2MP (2nd mortgages) are not the only programs available to homeowners, so just because you get rejected for these programs does not mean that you cannot get a modification. There may be some internal programs that are private modifications made available by your lender and these are offered on a case by case basis. So what are these mysterious \"internal\" programs? They are privately negotiated loan modifications where terms are approved or disapproved by the lender on a case by case basis. The lender could range from Freddie Mac, Fannie Mae to some other major lender - you just need to know who servicees your loan and that is the entity you will be negotiating with.\nIf you going to work directly with your lender on a loan modification, make sure you do your homework first and that you know what you are talking about. Arrange your finances and have a effective hardship letter ready. The better prepared you are, they better chances you will have at negotiating the loan modification you want.\nWill a Loan Modification Help You?\n----------------------------------\nIf you are facing a foreclosure on your home, then yes, a loan modification will help you. As with anything, the more research you do on the subject and the better educated you are about the entire loan modification process, the better your results will be in the long run. There are government as well as private programs available and you will need to investigation the pros and cons of each to see which is a good fit for your financial situation. The internet is loaded with information on the subject but it doesn't hurt to seek professional advise as well.\nThe bottom line is, if a loan modification keeps you from losing your house, all of the effort you put into your research and preparation will be worth it. There is light at the end of the tunnel — just getting there can be hard work. END
 TITLE: What is a Loan Modification and Can it Help You? CONTENT:    |  |  |  | \n: . END
 TITLE: Understanding What is a Reverse Mortgage CONTENT: What is a Reverse Mortgage and is it Right For You?\n---------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 15, 2017_\nIf you are an older American living on a fixed income, a reverse mortgage might be a good idea if you need additional retirement income, to pay for medical expenses, or to finance a much needed home improvement. In essence, a reverse mortgage allows people who are 62 years of age or older, house-rich yet cash-poor, to cash in on the equity in their homes without having to sell the home or take on a second mortgage.\nHow Does a Reverse Mortgage Work?\n---------------------------------\nIn a conventional mortgage, you make regular monthly payments to a mortgage lender for the principal and interest owed on your house. In a reverse mortgage, you actually receive money back from the lender based on the principal that is already in your house. This money does not need to be repaid for as long as you remain in your home and use it as your primary residence. Instead, the loan will be repaid upon your death or sale of your home, or if you no longer use your home as your primary residence.\nWho Qualifies for a Reverse Mortgage?\n-------------------------------------\nIn order to qualify for a reverse mortgage, you must be 62 years of age or older, own your home outright, or have a low mortgage balance that can be paid off at closing with proceeds from the reverse loan, and you must live in the home. Your home must be a single family home or a 1 to 4 unit home with one unit occupied by the borrower. HUD-approved condominiums and manufactured homes that meet FHA requirements are also eligible.\nTypes of Reverse Mortgages\n--------------------------\nThere are two basic types of reverse mortgages: single-purpose and federally-insured reverse mortgages.\n*   **Single purpose reverse mortgages** are offered by state and local government agencies (and some non-profit organizations). The costs of obtaining a single-purpose loan are quite low; however, the loan itself is not available in all states and regions. Single-purpose loans must be used for a legitimate purpose (specified by the lender), like payment of property taxes. The loan is also, as its name states, for a single purpose only.\n*   **Federally-insured reverse mortgages**, also known as Home Equity Conversion Mortgages (HECMs), are backed by the U.S. Department of Housing and Urban Development (HUD). Proprietary reverse mortgages are private loans sponsored by individual corporations. Both of these loan types are more expensive but are also more widely available. They have no income or medical requirements and can be used for any and multiple purposes.\n    HECMs require that you first meet with a house counselor who is government-approved. This counselor will explain the costs and benefits of the loan as well as other alternatives (such as other government or even nonprofit programs). The total amount of money that you can borrow will be calculated based on your age, the appraised value of your home, your home's location, and current interest rates. You will also decide how the HECM is paid out to you- whether as a series of fixed cash advances, as a line of credit, or both.\n    The downside to obtaining an HECM is that, because it is government sponsored and regulated, oftentimes the cost of obtaining one will be the same no matter where you go. All HECM lenders must follow HUD rules, so the payout percentage, fees, and interest rates may be preset to certain values. Therefore, if you live in a higher-valued home or have a good amount of home equity, it may be better to shop around for a private company for a reverse mortgage loan.\nThings to Look for When Thinking About Getting a Reverse Mortgage\n-----------------------------------------------------------------\n1.  **Find Out What Index the Loan Uses.** Reverse mortgages have typically based their interest rates on the Constant Maturity Treasury, or CMT, index, which is based on treasury bonds. However, other loans base their interest rates on other indices, such as the London Interbank Offered Rate, or LIBOR index. Using the LIBOR index often allows for lower interest rates; however, there can be higher initial fees for securing a lower interest loan. If you are able to secure a fixed rate low interest loan, that higher initial fee may be worth it.\n2.  **What are the Fees?** Earlier this year, the Federal Housing Administration began reducing their fees by about 40 percent and other banks have followed suit. Prior to this, the fees for securing a loan could be as high as 5 percent of the home's value. Fees can be paid upfront or financed into the loan and are usually dependent on the amount borrowed. If you are seeking just a lump-sum payout and have a home with high equity, some lenders are willing to reduce fees or even eliminate them altogether.\n3.  **Check Out the Types of Fees Being Charged.** There are many types of fees, as well as costs, associated with obtaining a reverse mortgage loan. Lenders can charge an origination fee for obtaining the loan and there are the usual closing costs to consider. Sometimes a lender will also charge a servicing fee for the duration of the loan. Many lenders are now waiving some of their fees - make sure to ask.\n4.  **Be Aware of Pitfalls.** Keep in mind that getting a reverse mortgage means that you will owe more money over time. While this may seem obvious, what some people forget is that, as the principal on a house diminishes, interest increases. This interest is added to the total amount owed and is not tax-deductible. Thus, a reverse mortgage could potentially use up all the equity in your home and even leave you with a higher debt than you started with when first purchasing your home. Fortunately, most reverse mortgages contain a non-recourse clause which prevents you or your heirs from owing more than the value of the home when the loan is finally repaid.\n5.  **Cancellation Clause.** Finally, a reverse mortgage, regardless of reason, can be canceled up to three business days after the signing of the documents without penalty. You must cancel in writing, and the lender is obligated to return all the money you paid for the actual financing.\nIn conclusion, a reverse mortgage is a good way for senior citizens to obtain cash without losing their homes. However, it pays to be aware of the fees and interest rates associated with these loans. Be sure to consider all your options first before starting a reverse mortgage loan. The AARP Foundation and the U.S. Department of Housing and Urban Development may also be contacted for additional information. END
 TITLE: Understanding What is a Reverse Mortgage CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Understand ARMs and Is it Right For You? CONTENT: Understanding Adjustable Rate Mortgage or ARMs\n----------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 10, 2017_\nIf you are in the market for a house, you will want to choose the right type of home mortgage loan that will fit your needs and financial situation. Banks and mortgage brokers offer a wide variety of home loan products and finding the right one can be tricky as some loans carry some good options and some carry some very bad options. Now that you've scoured the housing market for the perfect house, you now need to scour the mortgage loan industry for the perfect home loan. One such type of home loan product is an adjustable rate mortgage or what is more commonly referred to as an ARM. Is this home loan right for you? Read on to find out more about this loan and if it will be a good fit for your home buying needs.\nWhat is an Adjustable Rate Mortgage or ARM?\n-------------------------------------------\nAn adjustable rate mortgage is pretty much what it sounds like - a home loan with an interest rate that can adjust periodically. A fluctuating interest rate means your monthly payments can go up or down, which makes it difficult to predict what your payments will be in the future. Today, when you take out an ARM, it is not a purely adjustable rate but a sort of hybrid ARM. That means, it starts out with an initial fixed-rate period and then changes into a pure adjustable rate. The most popular adjustable rate mortgage is the 5\/1 ARM, which means:\n*   The first 5 years are at a fixed interest rate. (That's the \"5\" in 5\/1.)\n*   After that, the interest rate can change every year. (That's the \"1\" in 5\/1.)\nLenders also offer 3\/1 ARMs, 7\/1 ARMs, and 10\/1 ARMs. Picking the right ARM depends on how long you plan to stay in the home you are buying and your financial situation.\nDetails You Need to Understand About ARMs\n-----------------------------------------\nAs with anything, the more informed you are about a topic the more you understand the ins and outs on that subject and the better decision you will make. This could not be any truer than with an adjustable rate mortgage. The most important aspects of an ARM you need to understand is index, margin, and caps. So, let's dig into each one so you will be able to make a well informed decision when it comes to using an ARM or not.\n**What is an index?**  After the fixed-rate period of your loan is over, your interest rate adjusts based on the index the lender uses. There are several indexes used with the most common ones being Constant Maturity Treasury, 11th District Cost of Funds Index (COFI), and the London Interbank Offered Rate, or LIBOR.  The value of these indexes change from month to month and can be found in the financial pages of most newspapers or online.\n**What is a margin?** Lenders add a margin, which is a fixed percentage rate, on to the index. The margin is set at the start of your loan, and it never changes. You will need to know what the margin is to determine whether you can handle the payments when your loan adjusts. For example, say your index is LIBOR, which has a value of .86 on the day your loan adjusts. You have a margin of 2.25. Your new interest rate is going to be 3.11 percent and you will be jumping for joy if your loan had started at 3.625 percent.\n**What are caps?** To keep your ARM from shooting out into the stratosphere, financial institutions put caps into place: the initial cap, the annual cap, and the life cap. The caps on your loan will be displayed like this 2\/2\/6, for example. Using this example, the first number (initial cap) is the maximum the interest rate can go up on the first adjustment. So, if you started at 3.25 percent, the max it would go up to would be 5.25 percent. The second number (annual cap) is the cap for every subsequent adjustment the rate can increase by above the rate during the previous period. Let's say your rate adjusted to 3.75 percent from 3.25 percent during the first adjustment. When your ARM adjusts in the next year, it is capped at 5.75 percent. The third number (life cap) in our example, 6, means the rate can never go higher than 6 points above the start rate. So if your starting rate was 3.25 percent, your rate will never go any higher than 9.25 percent.\n**How often can your loan adjust?** To know this, you need to look at the type of ARM loan you have on your house. If, for example, you took out a 5\/1 ARM, that would mean your loan will be fixed for 5 years and would adjust every year thereafter. If you took out a 5\/6 ARM, your loan would be fixed for 5 years but adjust every 6 months.\nHow Will an ARM Benefit You in the Long Run?\n--------------------------------------------\nThe most obvious benefit of taking out an ARM rather than a fixed-interest rate loan is the lower starting interest rate. Looking at rates as of the writing of this article, a 30-year fixed mortgage rate was 3.45 percent and a 5\/1 ARM was 3.13 percent. If you are not planning to live in this house for longer than 5 years, taking out an ARM will save you money with a lower monthly payments. You can get ARMs in 5, 7 or 10 year increments so if your plan is to sell your house within that time frame, an ARM is the better way to go. If you are planning on staying in the house until you die, taking out a fixed-interest rate loan is the better choice.\nIf you stay in your house longer than the initial fixed-interest rate period, you run the risk of your interest rate going up and your monthly payments increasing. On the flip side, your interest rate could decrease hence lowering your monthly payments. If you are a gambling type of person, this roll of the dice might appeal to you. But be warned, your luck may only last for a short while so you will need to be prepared if the rates suddenly shoot up due to catastrophic economic circumstances - remember 2008?\nBuying a house is exciting and exhausting. Our advice to you during this busy time is to take the time and research all the available home loans and make sure you are getting the mortgage loan that is best for you. Putting as much effort into getting the best loan as you did into finding the perfect house, will pay off for you financially in the long run. END
 TITLE: Understand ARMs and Is it Right For You? CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Information on VA Home Loans for Military Personnel CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: August 15, 2017_\nThe VA (Veteran Affairs) Home Loan program was designed to help veterans finance the purchase of a home with favorable loan terms and at a rate of interest which is competitive with the rate charged on other types of mortgage loans. For a VA housing loan, a veteran is defined as a member of the Selected Reserve, active duty service personnel and certain categories of spouses established by the Servicemen Readjustment Act or the GI Bill of Rights. The Bill of Rights was enacted under President Franklin D. Roosevelt in 1944. The objective of the legislation was to help veterans achieve a life of security and comfort after serving their country.\nSince the law was passed after World War II, many soldiers and other military personnel have benefited from it. Its timeliness provided the much needed hope that these people needed after fighting the war. It expressed the country's appreciation of their valor and efforts to restore peace. The housing and financial assistance these heroes received allowed them to rebuild their lives.\nWhat are the Benefits of a VA Loan?\n-----------------------------------\nThese loans are often made without any down payment at all, and frequently offer lower interest rates than ordinarily available with other kinds of loans. The veteran is informed of the estimated property value through an appraisal and there is a limitation on closing costs. Lastly, they can opt for longer repayment terms and they have the right to prepay with penalty.\nEligible VA Loan Purchases\n--------------------------\nA veteran may use a VA loan to finance the following:\n*   To buy a home, including townhouse or condominium unit in a VA-approved project.\n*   To build a home.\n*   To repair, alter, or improve a home.\n*   To simultaneously purchase and improve a home.\n*   To improve a home through installment of a solar heating and\/or cooling system or other energy efficient improvements.\n*   To refinance an existing home loan.\n*   To refinance an existing VA loan to reduce the interest rate and add energy efficiency improvements.\n*   To buy a manufactured (mobile) home and\/or lot.\n*   To buy and improve a lot on which to place a manufactured home which you already own and occupy.\n*   To refinance a manufactured home loan in order to acquire a lot.\nVA Loan Process\n---------------\n1.  Apply for a Certificate of Eligibility. A veteran who doesn't have a certificate can obtain one easily by making application on VA Form 26-1880, Request for Determination of Eligibility and Available Loan Guaranty Entitlement, to the local VA office.\n2.  Decide on a home the buyer wants to buy and sign a purchase agreement.\n3.  Order an appraisal from VA. (Usually this is done by the lender.) Most VA regional offices offer a speed-up telephone appraisal system. Call the local VA office for details.\n4.  Apply to a mortgage lender for the loan.\n5.  While the appraisal is being done, the lender can be gathering credit and income information. If the lender is authorized by VA to do automatic processing, upon receipt of a VA-approved appraisal, the loan can be approved and closed without waiting for VA's review of the credit application. For loans that must first be approved by VA, the lender will send the application to the local VA office, which will notify the lender of its decision.\n6.  Close the loan and the buyer moves in.\nService Requirements for VA Loans\n---------------------------------\nA person is eligible for VA financing if military service falls within any of the following categories:\n*   **Wartime Service** — Must have served at least 90 days on active duty and been discharged or released under other than dishonorable conditions.\n*   **Peacetime Service** — If service in the military fell between periods of wartime and one must have served at least 181 days of continuous active duty.\n*   **Active Duty Service** — If you are now on active duty, you are eligible after having served on continuous active status for at least 90 days.\n*   There is a two year military service requirement for enlisted veterans who enlisted and served in the military after September 7, 1980. Officers must have started their service after October 16, 1981.\n*   For national guards and selected reserves, the required period to have been in service is six years. There are, however, other criteria for pre-qualification that must be met.\n*   In case the military person eligible for the VA loan is dead, the surviving spouse (provided he or she must not have remarried) can avail the loan benefits upon compliance with the other requirements.\nLimitations on VA Loan Benefits\n-------------------------------\nIf you are qualified under the VA loan program, you can be assured of a loan amounting to 25 percent of the total value of your home so all you need to secure financing for is the balance of the the total value. If you need to borrow for the mandatory funding fee, you will have to apply for it separately as it is not included in the automatic eligibility provisions under the program.\nThe Veteran's Benefit Improvement Act of 2008 passed in October 10, 2008 allows veterans to purchase a home without any down payment in certain pre-approved home loan counties as stipulated by the Federal agency. The new law was signed by former President George W. Bush and it increased the maximum VA loan amount to nearly $1 million.\nIt is best to consult with a VA loan agency if you want to confirm your pre-qualifications under the VA loan program. These VA loan agencies are knowledgeable on the various cut-off dates that affect the required minimum periods of service. They can establish your eligibility and help you improve your chances to receive VA loan benefits.\nFor more information on VA Loans, go to the government website. END
 TITLE: Information on VA Home Loans for Military Personnel CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Information on VA Home Loans for Military Personnel CONTENT:    |  |  |  | \n: . END
 TITLE: Information on How to Apply For a Loan Modification CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: August 10, 2017_\nA loan modification can offer plenty of benefits for anyone struggling with financial obligations. When a bank considers modifying the original conditions of the mortgage loan, they can also create a way to stop your home from going into foreclosure. After all, if the bank agrees to work with you to find a more affordable way for you to get back on track financially, then they're not making moves to take your home.\nNot only is it possible to get your mortgage payments reduced with a successful loan modification, but you may even get your bank to agree to reducing your interest charges and waiving some of your penalty fees too.\nLoan Modification Application\n-----------------------------\nMost banks and lenders require that you submit your application for a loan modification in writing. This is called a letter of hardship and should include your reasons for being in such financial difficulty, as well as your request for a modification to your existing loan to help ease the pressure while you get back on your feet.\nThe unfortunate part about this requirement is that the majority of people who attempt to write their own hardship letter get the basics wrong. This can mean your application is declined and people can frequently find their bank unwilling to help them at a time when they need it most.\nBanks can be much easier to negotiate with than most people believe. After all, if they can help you catch up your delinquent payments and get back on the right track, they get to keep a customer that keeps paying them interest. Banks really don't want to take your house, but they do want to know that you're going to pay back the money you borrowed from them eventually.\nWriting a Hardship Letter\n-------------------------\nBefore you sit down to write your modification request, you will need to think about what you want to ask the bank to do for you. Most people believe that telling the bank all about how difficult their situation is and how hard it is to find a job in this economic climate will help the bank feel more sympathy for their situation.\nUnfortunately, the banks aren't in business to feel sympathy. They're in business to lend you money that you promised to pay back to them when you signed your credit contract. That's how they make their profits and pay their own staff. Keep this in mind when you fill a loan modification letter with a spiel about how upset you are about losing your home or how you were made redundant for your job and can't find new work. They simply don't want to hear it.\nThe bank's loan mitigation officer only wants to know what your plan is to get back on your feet financially. This means you should work out a clear and rational plan for what you're going to do about catching up your overdue payments. If the person reading your modification letter can see that you're trying hard to find a realistic solution to getting back on your feet, they're more likely to approve your application.\nHow Much Modification Do You Need?\n----------------------------------\nYou can't write a hardship letter asking the bank to modify your loan if you don't specify how much modification you need. If your financial situation has changed and your income is much lower than it used to be, then you'll need to write out an accurate budget.\nWrite down all of the income coming into the household each month and then make a list of your current monthly expenses. Tally up the figure at the bottom and make a note of how little you have left over each month to pay for living expenses and other necessities.\nThen write a second list of expenses, showing a lower mortgage payment amount and tally up the new figure. This should show the bank that approving a loan modification request could be exactly what you need to help get you back on track again.\nWriting a Loan Modification Letter\n----------------------------------\nOnce you have thought through your plan to catch up your past due payments and created a budget showing how a loan modification can help you, it's time to write your letter.\nRemember, the bank's loss mitigation officer receives a lot of calls and letters from upset, hurt, angry customers every day who are not being rational about helping themselves. You don't want to be one of those customers. Keep your writing tone light and positive and you'll find that the staff member will be far happier to deal with you than with the less-friendly customers.\nNo matter how bad you think your financial situation is right now, always remember to point out to the bank that it's a temporary problem and you're doing everything in your power to put it right. They want to know that you're looking for any ways at all to bring in some income and meet your financial obligations until you can find a replacement job.\nIf you can keep your application letter positive and make it very clear how and why a loan modification will be beneficial to your current situation, then you stand a much better chance of having your application accepted. END
 TITLE: Information Regarding FHA Loans CONTENT: Everything You Need to Know About FHA Loans\n-------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 14, 2017_\nIn the wake of the housing bubble's collapse in 2008, FHA loans have taken on a renewed importance for today's mortgage borrowers. An FHA loan is a mortgage insured by the Federal Housing Administration, a government agency within the U.S. Department of Housing and Urban Development. Borrowers with FHA loans pay for mortgage insurance, which protects the lender from a loss if the borrower defaults on the loan.\nBecause of that insurance, lenders can offer FHA loans at attractive interest rates and with less stringent and more flexible qualification requirements.\nSeven Facts About FHA Loans\n---------------------------\n**1\\. Less Than Perfect Credit is OK** - A borrower needed a credit score of 580 or better to qualify for a loan.\n**2\\. Minimum Down Payment is 3.5 Percent** - This is a fraction of what a typical loan would require. Borrowers can use their own savings or a gift from a family member.\n**3\\. Closing Costs May Be Covered** - FHA allows home sellers, builders and lenders to pay some of the borrower's closing costs.\n**4\\. Lender Must Be FHA Approved** - Because FHA is not a \"lender,\" but rather an insurance fund, borrowers need to get their loan through an FHA-approved lenders.\n**5\\. Borrower Must Carry Mortgage Insurance** - There are two mortgage insurance premiums required by FHA: 1) an upfront premium of 1.75 percent of the loan amount and 2) an annual premium based on the length of the loan.\n**6\\. Extra Cash Can Be Available For Repairs** - FHA has a special loan product for borrowers who need extra cash to make repairs on their home.\n**7\\. Relief Allowed for Financial Hardship** - If a borrower has suffered a serious financial hardship, an FHA-insured loan can offer some type of temporary relief to help the borrower make their payments.\nWho Can Benefit From an FHA Loan?\n---------------------------------\nBy serving as an umbrella under which lenders have the confidence to extend loans to those who may not meet conventional loan requirements, the FHA program allows individuals to qualify who may have been previously denied a home loan through conventional underwriting guidelines. FHA loans are designed for individuals who would like to purchase a home but may not have been able to save enough money for the purchase, such as recent college graduates, those still pursuing education, or a young couple starting out. It also allows individuals to qualify for a FHA loan whose credit has been marred by bankruptcy or foreclosure, as FICO (credit) scores can typically be lower than those for a conventional loan. At the current time, it is our understanding that the minimum FICO score for qualification for an FHA Loan is 580, but with extenuating circumstances variations to this limit may be possible — always discuss this with your mortgage professional.\nUnderwriting Guidelines for FHA Loans\n-------------------------------------\nCredit guidelines have been revamped for FHA loans as well as most other types of loans, and even the minimum FHA credit standards are harder to meet in the current market.\n1.  A stable 2-year employment record is required.\n2.  Monthly debt-to-income has to fall within certain parameters. Your monthly mortgage payment cannot be more than 29 percent of your gross monthly income.\n3.  Money for the downpayment should be yours and in your account for at least 6 months, but gift money is allowable.\n4.  FHA mortgage loan underwriting guidelines require property appraisal and it must appraise for at least the purchase price.\n5.  If you've had a foreclosure, you need to have re-established credit and it must be over 3 years since the date of foreclosure.\n6.  If you've had a bankruptcy, you need to wait 2 years and have clean credit.\n7.  The applicant cannot have any outstanding civil judgements or delinquencies on federal debts such as taxes or student loans.\nDifferent Types of FHA Loans Available\n--------------------------------------\n*   FHA fixed-rate mortgages, or Section 203(b) loans, are the most common and popular type of FHA mortgage. The interest rate does not change with a fixed-rate mortgage. A fixed-rate FHA mortgage insures the lender for the total amount of the mortgage in case the buyer defaults. Fixed-rate mortgages can be taken out for periods of 10, 15, 20, or 30 years.\n*   The FHA Renovation Mortgage, or 203(k), allows homeowners to borrow money for the purpose of renovating their home. Up to 110 percent of the cost needed to repair and renovate a home can be financed under this program. There are, however, restrictions regarding the types of renovations that will be allowed, and the minimum amount of the 203(k) is $5000.\n*   FHA adjustable-rate mortgages, or Section 215, have interest rates that vary contingent on the current federal index. An adjustable-rate mortgage, or ARM, may be attractive under certain economic conditions as the interest rates are initially lower than interest rates on a fixed-rate mortgage. Typically, an ARM will be most beneficial to homebuyers who don't intend to stay in the home for more than a few years, as interest rates tend to increase over time.\n*   FHA Bridal Registry Program allows a married couple to \"register\" with a lender, much like the namesake department store bridal registry. Relatives or friends can make gift payments into an interest-bearing account in the couple's name, which can later be used as a down payment towards a FHA mortgage.\n*   Officer and Teacher Next Door Program. Typically, the homes which qualify for this program are located in areas of revitalization, or in moderately low-income neighborhoods that may have many vacant houses that have been identified as good candidates for redevelopment efforts. Through HUD and FHA, qualified teachers and law enforcement officers are able to purchase houses at a 50 percent discount and are required to make only a $100 down payment if the house is financed with a FHA mortgage.\nFHA loans are available to anybody but are used most often by first-time home buyers and low- to moderate-income buyers. The decreased down payment and lack of set income limit qualifications makes this type of mortgage even more desirable for many people, particularly first-time homebuyers and those with blemished credit. For more information, visit the HUD website at . END
 TITLE: Information Regarding FHA Loans CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Information Regarding FHA Loans CONTENT:    |  |  |  | \n: . END
 TITLE: Costs and Fees Associated with Getting a Home Loan CONTENT: Detailed Descriptions of Mortgage Loan Fees and Costs\n-----------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 14, 2017_\nDuring the process of buying a house, becoming educated and aware of the fees and costs associated with a mortgage loan is good idea. According to an annual survey by Bankrate.com in 2016, the state of New York had the highest average closing costs of $2,648 and Pennsylvania was the lowest with $1,734. These number were based on a $200,000 mortgage with a 20 percent down payment. Some fees can be negotiated down during the buying process but first you need to understand what these costs are and why some of them are needed.\nTitle Costs\n-----------\nThird-party costs are expenses paid to others such as attorneys, title companies, escrow companies, inspectors or insurance firms.\n_**Recording Fees for Deed**_  - These are paid to the county clerk to record the deed and mortgage and change the property tax billing.\n**_State and Local Fees_** - These fees can include mortgage taxes levied by states as well as other local fees.\n**_Pro-Rated Taxes -_**  Taxes owed such as school taxes, municipal taxes may have to be split between you and the seller because they are due at different times of the year. For example, if taxes are due in October and you close in August, you would owe taxes for 2 months while the seller would owe taxes for the other 10 months. Prorated taxes usually are paid based on the number of days (not months) of ownership. Some lenders may require you to set up an escrow account to cover these bills. If your lender does not require an escrow account, you may want to set up a special account on your own to make sure you have money set aside for these important, and large, bills.\n**_Title Search Costs -_** Usually your attorney or title company will do or arrange for the title search to make sure there are no obstacles (liens, lawsuits) to your owning the home.\n**_Homeowner's Insurance -_** Most lenders require that you prepay the first year's premium for homeowner's insurance (sometimes called hazard insurance) and bring proof of payment to the closing. This insures that their investment will be secured, even if the house is destroyed.\n**_Owner's Title Insurance -_** You may want to purchase title insurance for yourself so that if problems arise, you are not left owing a mortgage on a property you no longer own. A thorough title search (going back to 1900 if necessary) is often assurance enough of a clear title.\n**_Land Survey -_** Most lenders will require that the property be surveyed to make sure that no one has encroached on it and to verify the buildings and improvements to the property.\nFinance and Lender Charges\n--------------------------\nMost people associate closing costs with the finance charges levied by mortgage lenders. The charges you pay will vary among lenders, so it pays to shop around for the best **combination** of mortgage terms **and** closing (or settlement) costs. You may have to pay the following charges:\n**_Origination or Application Fees -_** These are fees for processing the mortgage application and may be a flat fee or a percentage of the mortgage.\n**_Credit Report -_** If you are making a small down payment (usually less than 25 percent), most lenders will require a credit report on you and your spouse or equity partner. This fee often is a part of the origination fee.\n**_Points -_** A point is equal to 1 percent of the amount borrowed. Points can be payable when the loan is approved (before closing) or at closing. For FHA and VA mortgages the seller, not the buyer, must pay the points. Even if you are not using an FHA or VA mortgage, you may want to negotiate points in the purchase offer. Some lenders will let you finance points, adding this cost to the mortgage, which will increase your interest costs. If you pay the points up front, they are deductible in your income taxes in the year they are paid. Different deductibility rules apply to second homes.\n**_Lender's Attorney's Fees -_** Lenders may have their attorney draw up documents, check to see that the title is clear, and represent them at the closing.\n**_Document Preparation Fees -_** You will see an amazing array of papers, ranging from the application to the acceptance to the closing documents. Lenders may charge for these, or they may be included in the application and\/or attorney's fees.\n**_Preparation of Amortization Schedule -_** Some lenders will prepare a detailed amortization schedule for the full term of your mortgage. They are more likely to do this for fixed mortgages than for adjustable mortgages.\n**_Appraisal -_** Lenders want to be sure the property is worth at least as much as the mortgage. Professional property appraisers will compare the value of the house to that of similar properties in the neighborhood or community.\n**_Lender's Mortgage Insurance -_** If your down payment is less than 20 percent, many lenders will require that you purchase private mortgage insurance (PMI) for the amount of the loan. This way, if you default on the loan, the lender will recover his money. These insurance premiums will continue until your principal payments plus down payment equal 20 percent of the selling price, but they may continue for the life of the loan. The premiums usually are added to any amount you must escrow for taxes and homeowner's insurance.\n**_Lender's Title Insurance -_** Even though there is a title search for any obstacle (liens, lawsuits), many lenders require insurance so that should a problem arise, they can recover their mortgage investment. This is a one-time insurance premium, usually paid at closing; it is insurance for the lender only, not for you as a purchaser.\n**_Inspection Required by Lender -_** If you apply for an FHA or VA mortgage, the lender will require a termite inspection. In many rural areas, lenders will require a water test to make sure the well and water system will maintain an adequate supply of water to the house (this is usually a test for quantity, not a test for water quality).\n**_Prepaid Interest -_** Your first regular mortgage payment is usually due about 6 to 8 weeks after you close (for example, if you close in August, your first regular payment will be in October; the October payment covers the cost of borrowing money for the month of September). Interest costs, however, start as soon as you close. The lender will calculate how much interest you owe for the fraction of the month in which you close. For example, if you close on August 25, you would owe interest for 6 days. In some cases this is due at closing.\n**_Inspection Fee -_**  In addition to inspections required by the lender, you may make the purchase offer contingent on satisfactory completion of some other inspections. You and the seller will need to negotiate these fees.\n**_Appraisal Fee -_** You may want to hire your own appraiser, either before you sigh a purchase offer or after seeing the results of the lender's appraisal. END
 TITLE: Find Out the Real Costs of a Home Loan CONTENT: Costs Associated with a Home Loan When Using a Mortgage Broker\n--------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 15, 2017_\nIn this article, we will show you how a mortgage broker makes his\/her money on a mortgage loan transaction. Pay close attention as and you will see there are many ways one can skim money off the top of a deal. The following are the real costs associated with _every_ loan has ones where the broker makes no money on.\n*   Appraisal\n*   Title fees — title insurance, recording fees, title paperwork preparation\n*   Processing fee — cost of hiring employees to process the loan\n*   Mortgage insurance — for loans over 80 percent of the property's worth\n*   Pre-paid interest\n*   Credit report fees\n*   Inspection fees — generally termite inspection\n_(For a more detailed description of these costs, see our detailed cost section.)_\nThe rest of the fees are split by the mortgage broker and the loan officer. No, we didn't forget about the origination fee.\nMortgage brokers buy loans from a bank and sell them to customers. Every bank has a _par_ rate, that is, a mortgage rate at which the broker does not have to pay a fee in order to buy the loan. An interest rate lower than the _par_ rate would cost the broker money; an interest rate higher than the _par_rate would pay the broker a commission.\nFollowing so far? If a mortgage broker gave you a loan at the _par_ rate, and only charged you appraisal, processing fee, title and credit report fees, he or she wouldn't make a dime from the deal. Remember, a broker collects no interest from the loan, or the _servicing fees_. The broker only collects a commissions from the mortgage which actually lends the consumer the money.\nSome brokers have limitation on how much a loan officer can charge in fees — the loan application fee, the origination fee and the points. However, most brokers split the profit earned from every loan with the loan officer. Can you see how it is in the interest of a loan officer to charge you more points and fees? It's money in their pocket.\nOf course, the brokers should be paid something for their services. The normal fees in the industry are an origination fee (1 _point_) plus one additional _point_. What's a _point_? A _point_ is 1 percent of the total loan amount. For example, one point on a loan amount of $50,000 is $500 dollars.\nThe terms of a loan when dealing with a mortgage broker are very flexible. To illustrate this point: Don't want to\/can't pay a lot of loan fees? Will it keep you from getting your loan? As a solution, the broker can raise the interest rate on your loan. How does this help? If the loan officer sells you a loan above the _par interest rate_ (the interest rate at which a loan costs nothing and pays the broker no fees), he will receive a commission from the bank selling him the loan. He still gets his money and you pay no loan fees. You will, however be paying these points in the form of extra interest for the life of the loan, which is much more expensive than paying the points up front at closing.\nOkay. You can pay a higher interest rate in lieu of points on your mortgage if you can't afford the up-front costs at closing.\nIn the reverse situation, if you wanted a loan at an interest rate which was **lower** than the par rate, the bank selling the loan charges the broker extra money for it, a cost he\/she passes on to you in the form of _points_. You will pay higher costs up-front at closing and less over the life of the loan due to a lower interest rate.\nWhen a broker receives _points_ from the bank for charging a higher interest than the _par_ rate, this is called _getting points on the backside_.\nThe reverse situation is paying extra points for a lower interest rate. This is called _buying down the interest rate._\nWhat if you suspect that your loan officer jacked up your interest rate to get more commission (_he received points on the back_) and didn't tell you about it? It does happen.\nAsk him or her. If you're not satisfied with the answer you can always figure out how much extra money the broker received by looking at your closing statement from the title company. Your title officer will gladly point it out. However, at this stage of the game, you're usually signing loan documents and it's too late to do anything about it short of canceling the deal. If you notice your mortgage company is getting three points on the back — meaning the interest rate you're getting is much higher than the par rate — you can always walk out on the deal. Some loan officers count on the fact that the moving van containing all your worldly possessions is parked outside and you won't do that.\nFees to Watch Out For\n---------------------\n*   **Points** — Keep in mind, some brokers won't let their loan officers charge less than one point origination plus one point (known in the industry as _one and one_). But some do. Shop around, especially if you have A credit. Some loan officers will charge you less if they know your loan will be a piece of cake to put through the system.\n*   **Application fees** — Application fees are non-refundable and they are 100 percent pure profit for the mortgage broker. Walk out if they ask for an application fee up front. The only exception to this rule: if you have tough credit. In this case, the loan officer will have to do a lot of work before they can tell if your loan will go through. Time is money and they want to be paid for this effort. If your loan gets denied without an application fee up front, the loan officer put in a lot of hours for nothing. END
 TITLE: What is a Balloon Loan and Is It Right For You? CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: August 10, 2017_\nA balloon loan is a mortgage loan that requires a larger than usual one-time payment at the end of the term. This means your payments are lower in the years before the balloon payment is due. The problem with a balloon loan is that at the end of the term, you may be required to pay tens of thousands of dollars to pay off the remaining balance in full. Keeping that in mind, you have to make sure you will be prepared to make this very large payment at the end of the term of the loan.\nHow Does a Ballon Loan Work?\n----------------------------\nInterest rates on balloon loans may be either fixed or adjustable. You can also have interest-only loans. Nonetheless, the interest rate is lower and therefore payments smaller, since the bank will not have to service the loan for the full 30 years and get its money back in say 7 to 10 years instead. Another reason the payments may be lower is that the principal is only partly paid monthly, since there will be a big balance due at the end of the term.\nTo illustrate, compare a 7-year balloon loan of $100,000 at 6 percent interest and a 30-year traditional home loan of the same amount at 7 percent interest. With the balloon loan, you could make a monthly payment of only $520 and at the end of seven years, there will be a balance of $46,000 remaining in the principal amount, which you must pay in full. In contrast, for the traditional home mortgage loan, the monthly amortization is $665 for the next thirty years after which, the loan balance will be zero.\nWhat if You Can't Pay the Balloon Payment?\n------------------------------------------\nThe majority of borrowers are not likely to meet the required balloon payment at maturity, so balloon loans usually carry the reset option where the borrower can seek refinancing for their home. The new loan can also be another balloon loan or a traditional home mortgage loan with a longer term.\nThe lender may recommend or the borrower may choose the type of loan to be availed of for the refinancing, depending on the borrower's ability to repay the loan and his overall financial situation by then. As can be expected, the borrower chooses the type that charges the cheapest interest with the least monthly payment over the shortest period of repayment.\nARMs vs. Balloon Loans\n----------------------\nDo not be confused with a balloon loan and an adjustable rate mortgage (ARM) loan. Ballon loans deal with the manner of repayment and that your final payment is for one big amount. The classification of an ARM loan is based on how the interest is charged. ARM loans are usually availed of under the more conventional home mortgage loans. With adjustable rate mortgage loans, your initial interest is typically low but the rate is adjusted each year or two depending on the terms of your loan. When the interest on your loan is adjusted, your monthly payments also change as a result of the adjustment.\nYou are at an advantage with an ARM loan when the interest rate goes down. We are in one of those rare times when the mortgage rate is going down, definitely not the normal case. On the other hand, the advantage with a balloon loan is the flexibility to shop for a better rate when the time comes the loan has to be refinanced. While you may not be able to control the fluctuations of interest rate under ARM loans, there is no need for refinancing. This convenience is what attracts many borrowers to the ARM loan product.\nBalloon loans grew in popularity during the last surge in the housing market around 2006. Many home buyers sought 15-year balloon loans secured by second mortgages to pay for the down payment of their homes. This helped them avoid having to buy mortgage insurance. If you are in the market for a new house or a new loan, you may want to learn more about balloon loans. It might just be the type of loan you need.\nIs a Balloon Loan Right for You?\n--------------------------------\nIf you are planning on moving within the next 5 to 7 years, a balloon mortgage might be right for you, since you will be selling the home and closing out the loan at this time. Studies show most 30 year loans never make it to maturity, but are refinanced or paid off. If you are not planning on moving before your loan matures, you may be caught in a situation where your loan matures, but interest rates are high at the time of refinance, you may find yourself in a mortgage with a crippling interest rate. END
 TITLE: HIdden Costs That Increase Your Home Purchase or Refinance CONTENT: Beware of the Hidden Costs of Your Home Loan\n--------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 15, 2017_\nIf you have gone through the home buying process, then you know there are lots of fees associated with a home loan. If you have not, this article will be an eye opener for you prior to jumping into a mortgage loan. The majority of the closing costs and fees are an integral part of every loan and can not be altered by the loan officer or mortgage company. But, there are fees and hidden costs that the loan officer is in complete control over. These fees are just gravy for the officer and mortgage company. Unfortunately, the typical consumer is unaware of these costs because they are hidden in the loan paperwork and closing documents.\nProfitable Fees For a Mortgage Company\n--------------------------------------\nThe following fees determine the profit on a loan and are in complete control of the loan officer or mortgage broker. There is no standard for these fees so the unscrupulous loan officer will try and make as much as possible from you with these fees.  Most loan officers are not paid a salary, they are paid through commissions from every loan they originate that closes. This puts the pressure on them to make as much money as possible, wherever possible. Loan officers typically split the profits (usually 50\/50) for each loan with the company for which they work. Therefore, every dollar they can squeeze out of you is 50 cents into their pocket. To originate a loan, the loan officer merely gets a client to fill out a loan application.\n*   **Origination or Application Fees —** These are fees for processing the mortgage application and may be a flat fee or a percentage of the mortgage. They usually are equal to one point. In fact, they are just a point called by a fancy name so the loan officer can charge more for the loan.\n*   **Points —** A point is equal to 1 percent of the amount borrowed. For example, one point on a loan amount of $50,000 is $500. Points can be payable when the loan is approved (before closing) or at closing. For FHA and VA mortgages, the seller-not the buyer-must pay the points. Even if you are not using an FHA or VA mortgage, you may want to negotiate points in the purchase offer. Some lenders will let you finance points, adding this cost to the mortgage, which will increase your interest costs. If you pay the points up front, they are deductible from your income taxes in the year they are paid. Different deductibility rules apply to second homes.\n*   **Application Fees —** Application fees are non-refundable and 100 percent pure profit for the mortgage broker. Walk out if they ask for an application fee up front. The only exception to this rule is if you have tough credit. In this case, the loan officer will have to do a lot of work before he can tell if your loan will go through. Time is money and he will want to be paid for this effort. If your loan gets denied without an application fee up front, the loan officer has put in a lot of hours for nothing.\n*   **Points On the Back End —** These are fees and commissions earned by the mortgage broker by selling you a loan whose interest rate is above the going rate. \nThe normal fees in the industry are an origination fee (1 point) plus one additional point. Some brokers have a limit on how much a loan officer can charge in fees-the loan application fee, the origination fee, and the points, but not all. However, there is no absolute hard and fast rules.\nGetting Points on the Back End\n------------------------------\nAlso known as _yield-spread fees_, these points on the back end are one of the ways a loan officer makes more funds available to the total loan \"kitty.\" It is essentially a kick-back from the mortgage bank the loan officer is buying the loan from, earned by selling a customer a loan at an interest rate that is above the going rate.\nEach day, loan officers receive rates from banks for all of their loan programs. Listed for each program is the par interest rate. The par interest rate is the interest rate at which the broker does not have to pay a fee to buy the loan and then sell it to you, nor does he receive a commission for selling you the loan at this rate. You might say that the par rate is loan equilibrium. The table below shows an example of the types of rates a bank might publish to their subscribing mortgage companies every day.\n**EXAMPLE RATE SHEET ON A 30-YEAR LOAN**\n**6.5**\n**6.75**\n**7.0**\n**7.25**\n**7.5**\n15-day lock\n.50\n.25\n0.00\n(.5)\n(1.5)\n30-day lock\n.75\n.50\n.25\n0.00\n(.25)\n45-day lock\n1.50\n.75\n.50\n.25\n0.00\n60-day lock\n2.50\n1.00\n.75\n.50\n.25\nIn the above example, the par value for a 15-day lock is 7.0 percent. The numbers in parentheses are the points returned to the loan proceeds as additional funds to offset the costs of the loan (or as a commission for loan officer). Why would anyone knowingly pay this higher rate? To get a no-cost loan, which we will go over later in this article.\nFor example, if you wanted a $150,000.00 loan, but didn't have enough to cover the loan costs, you could bump up your interest rate to 7.5 percent, giving you: $150,000.00 x 1.5%\/100 = $2,250.00.\nThis money will be credited to the loan proceeds at closing. What does this mean? It means that if your closing costs are $2,250.00, you won't have to lay out a dime to do the loan. Keep in mind, though, that if you are purchasing a home, you can't just up the interest rate to get your down payment. You must have enough money for the down payment.\nAnd if you didn't know that the rate you were getting was higher than the par rate (meaning you paid full loan costs)? The loan officer gets that $2,250.00. Do some loan officers conveniently forget to tell you about this little loan surplus? Unfortunately, yes; it is one of the most profitable methods used by loan officers.\nNo-Cost Loans\n-------------\nYou've heard of those no-cost refinance loans? Forget it. There is no such thing. A broker must make money on every loan. Many well-intentioned loan officers honestly believe they are giving you a loan for free, but this simply is not the case.\nIn the example above, we showed you how you could get a loan at an interest rate above the par rate and get points on the back. The points on the back translate to extra funds available to pay the cost of the loan plus pay the loan officer a commission. So what's wrong with this? Nothing, but you are financing the \"free cost\" of the loan over the term of the loan (usually 30 years), which can double or triple the closing costs (by way of additional interest) as compared to pay the closing costs in cash.\nHow Do You Know if the Loan Officer is Increasing the Interest Rate?\n--------------------------------------------------------------------\nIt bears repeating that it is the loan officer who picks the interest rate he is going to sell you and, consequently, the commissions he will earn on the loan. If he is competing with another loan company to get your loan, he may not be greedy and not jack up the rate. But if you don't shop around, don't trust him to be honest. Some loan officers are completely up-front with you, but some aren't. Always shop around, especially if you have \"A\" credit. Some loan officers will charge you less if they know your loan will be a piece of cake to put through the system.\nTake extra caution if you have less than stellar credit and must get a non-conforming loan, as these are typically the biggest target of shady loan officers. Desperate people have been known to have swallowed higher interest rates and 5 points in fees. This definitely is gouging. END
 TITLE: HIdden Costs That Increase Your Home Purchase or Refinance CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Understanding What is in a Truth in Lending Statement CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: August 15, 2017_\nOne document that is very important when it comes to a mortgage loan, is a Truth in Lending statement.  A Truth in Lending disclosure statement is designed to help borrowers understand their borrowing costs in their entirety. Federal law requires that lenders provide a Truth in Lending (TIL) document to all loan applicants within three business days of receiving a loan application, disclosing all costs associated with making and closing the loan.\nThe Real Estate Settlement Procedures Act requires lenders to give you an information booklet, **Settlement Costs and You**, written by the U.S. Department of Housing and Urban Development, which discusses how to negotiate a sales contract, how to work with various professionals (attorneys, real estate agents, lenders), and your rights and responsibilities as a home buyer.\nWhat Information is Found in a Truth in Lending Statement?\n----------------------------------------------------------\nA truth in lending (TIL) statement contains information regarding the annual percentage rate, the finance charge, the amount financed, and the total payments required. Your lender is required to provide you with a \"good faith estimate of settlement costs,\" or TIL, within three days of the time you apply for the mortgage. This estimate should give you a good idea of how much cash you will need at closing to cover pro-rated taxes, first month's interest, and other settlement costs.\nThe TIL statement may also contain information on security interest, late charges, prepayment provisions, and whether the mortgage is assumable. If you have an adjustable rate loan, it may outline the limits on the adjustments (annual and lifetime caps) and give an example of what your next year's payment might be, depending on interest rates.\nWhat a TIL Statement is Not\n---------------------------\nYou should note a couple of things about this document. It is the most misunderstood of all the paperwork and generates the most panic calls to the loan officer.\n1.  **The APR listed on the paperwork is not the rate you applied for.**  The APR calculates the interest rate in some complicated formula which takes into account your closing costs and fees, and is generally much higher than the agreed upon interest. Ignore this number. The actual loan interest rate should also be listed on the TIL, clearly marked. Most people don't get this far because the APR is the first number they see.\n2.  **This TIL doesn't mean a thing.**   It is not an agreement between you and the broker. The bank can change the interest rate and terms at any time. The TIL just indicates the initial estimate by the loan officer. If you want to guarantee your interest rate, lock your loan.\nBuying a home is a huge decision. If you have any questions about your Truth in Lending disclosure statement, be sure to ask your lender for clarification on any items you do not understand. END
 TITLE: Understanding What is in a Truth in Lending Statement CONTENT:    |  |  |  | \n: . END
 TITLE: Private Mortgage Insurance and Points Increase Home Price CONTENT: The Additional Cost of PMI and Mortgage Points to Home Buying\n-------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 15, 2017_\nAccording to a recent study, buying a home is the number one most stressful experience in life. Can you believe buying a house beats out divorce, getting fired, or filing for bankruptcy? The U.S. Census calculated that the average person in the United States can expect to move 11.7 times in their lifetime. You would think with all of that moving we would get used to it — guess not.\nProbably the most stressful part about buying a house is the lack of understanding when it comes to all the costs that add up in the mortgage loan — over and above the actual cost of the home. After you finally come to an agreement on the price with the seller, you think that is it but guess again, there are all kinds of different expenses that will come into play. The more you know about these fees, the less stress you will feel during this whole transaction. So, let's go over some of these costs and give you the much needed information regarding PMI and mortgage points. \nWhat is Private Mortgage Insurance or PMI?\n------------------------------------------\nPrivate mortgage insurance, PMI, is designed to protect the mortgage company should you default on your loan. When you apply for a mortgage, the lender wants to make sure your home will have enough equity to pay off the loan balance should you default and go into foreclosure. Private mortgage insurance is an actual insurance policy issued by an insurance company that benefits the lender. If a home goes into foreclosure and the lender is not able to recoup the outstanding balance by selling the home, the insurance company that issued the PMI will pay the lender the difference.\nPMI is called \"private\" because it is only offered to private companies and not government agencies such as FHA or VA mortgage programs. Government backed loans have their own version of PMI.\nTo determine whether or not you will be required to have PMI when you buy a new home, the lender looks at the amount of your down payment compared to the sales price to determine your loan to value (LTV) ratio. So if you purchase a home for $200,000 and put $20,000 down, your loan to value ratio is 90 percent. Typically, if your loan to value ratio is more than 80 percent, you will be required to pay PMI. You may also be required to carry PMI if you have poor credit, even if your LTV is 70, 60 or 50 percent.\nNow, once you have reached a loan balance of 80 percent, don't think the PMI is going to magically disappear. You have to actually request a cancellation in writing and you have to be in good standing with your payment history. In addition, you may also have to pay for an appraisal to substantiate the current value of the home and submit proof you do not have any liens on the house.\nThe good news is if you have reached 78 percent LTV and your payments are up to date, your lender must automatically cancel the PMI.\nMortgage Points — Buying Down a Lower Interest Rate\n---------------------------------------------------\nHere is another monkey wrench that gets thrown into the entire home buying process - mortgage points. You will hear real estate agents and loan officers toss around terms like \"discount points\" and \"origination points\" as a matter of fact when you have no idea what in the world they are talking about. Before you venture down the road of home ownership, make sure you have a clear understanding what these words mean and what they will mean to you financially. Discount points and origination points are both equal in value - one point equates to one percent of the loan amount.\n### Discount Points\nDiscount points are a way of prepaying the interest on your loan. As the borrower, you have the option of paying these additional points to lower your monthly payment. If you plan to stay in this house for a number of years, buying these points is a great way to lower your monthly payment. Word to the wise, it is important to calculate when you will break even and begin to recoup the cost of this upfront cost. You might also want to consider if maybe the money would be better used as a larger down payment to possibly eliminate PMI payments.\n### Origination Points\nOrigination points might also be known as origination fees and are used to pay the administrative costs for acquiring a loan. The number of points assessed depends on your credit score and they usually are around one point or one percent, depending on the lender. Discount points are tax-deductible because they cover the interest on the loan. Origination points are only tax-deductible if they are used to obtain the mortgage and not to cover other closing costs.\nThe bottom line is that there is more to consider when getting a mortgage than just the down payment. The first hurdle to clear is getting a loan with a great interest rate but once you get over that, there are still plenty of other mortgage costs to consider. It is imperative you understand all the possible costs that could be thrown at you during the closing process of a loan. And, you need to make sure you have funds available to cover any of these unexpected costs. Make sure you are talking to your loan officer and getting as much information as you can before you sign on the line. This little bit of extra work on your part will pay off in the long run by saving you money in interest and fees when you buy a house. END
 TITLE: How to Apply For a Mortgage Loan with Bad Credit CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: August 10, 2017_\nOne of the top reasons people turn to this website is to find credit repair information. The number one reason people want to fix their credit is to buy a home. But how \"fixed\" or \"repaired\" must one's credit be to apply for a mortgage?  In a competitive housing marketing, waiting until your credit is squeaky clean could mean losing the house of your dreams. You can apply for a loan cost even if you pay more for a loan due to bad credit.\nThe logic behind encouraging people with bad credit to hold off from applying for a mortgage is that a person with bad credit could find it more difficult to get an application approved due to having a low credit score. Subprime customers may also find they're charged a higher rate of interest, which can make repayments higher and therefore less affordable.\nWhile these seem like logical arguments on the surface, there is a deeper reasoning beneath that could indicate several good reasons why people with bad credit should consider applying for a mortgage sooner rather than later.\nApply for a Home Loan\n---------------------\n**You Don't Know Until You Apply**  \nIt's human nature to fear the unknown. Many people think their credit is way worse than it actually is. Why not apply for a loan in advance so you know how you rate?\n**Don't get Stuck on the Interest Rate**  \nDo the actual numbers, rather than reject a potentially high sounding interest rate. Can you afford the payment? Have you found a home you like that fits the loan amount you qualify for at that payment? Then don't worry about the interest rate presented. You can continue to work on your credit and refinance at a later date.\n**Buy at a Low Price and Build Equity**  \nRight now, the real estate market is low. While all real estate markets go through down times, they also have periods of growth too. These cycles have been happening for decades. While I wouldn't begin to be crazy enough to guarantee you that real estate prices will be going up, historically, real estate prices have steadily increased through the entire history of the US. Like the stock market, you just have to buy and sell at the right time.\nBuying a home sooner and applying for your mortgage even with bad credit could potentially save you tens of thousands of dollars as the real estate market begins to recover and homes become more expensive.\n**It's a Lifestyle Choice**  \nOwning a home isn't always the best financial choice. The average American homeowner never actually pays off their home, but either refinances or buys a new one numerous times over the years. If you were renting during the last crisis, your investments could have been somewhat insulated from the crash.\nHowever, if you're tired of noisy neighbors in an apartment complex and love doing home improvements, owning a home can be the way to go. While renting a house is just fine, sometimes it just doesn't feel like home unless it's yours.\nRebuild Your Credit\n-------------------\nOnce you have been approved for your bad credit mortgage, you have several opportunities to work on increasing your credit score. Every repayment you make on time is reported as responsible financial behavior, so this action alone can help to improve your score.\nMortgages are a type of an installment loan, meaning it is loan with fixed repayment time period. An other example of an installment loan would be an auto loan. A \"Paid as Agreed\" mortgage loan is given the most weight by Fair Isaac in calculating your FICO score.\nRe-Negotiate Your Loan\n----------------------\nOnce you've managed to improve your credit score a little with your regular mortgage repayments, you should find that your bank will suddenly be more willing to negotiate with you for a reduction in your interest charges.\nAs your credit steadily improves, you'll be able to negotiate for even further rate reductions, which should in turn reduce your repayment amounts and make your budget even easier to manage.\nBuild Equity\n------------\nOnce you're in your own home, you have the opportunity to begin building equity. Your equity is the amount between the value of your home and the balance outstanding on your mortgage. There are two primary ways to build equity; increase the value of your home or decrease the balance of your loan.\n**Paying Extra Principal**  \nNo matter what your minimum repayment is, try to find even a couple of dollars each month to round your payment up to the nearest $10. For example, if your minimum repayment is $813 per month, round this figure up to $820 and make sure to pay this little bit extra whenever you can. If you do pay extra over the set mortgage payment, make sure your bank knows the extra amount goes towards principal, not interest.\n**Refinance at a Later Date**  \nAs your level of equity increases, you might find your bank is willing to help you consolidate some of your other outstanding debts into your mortgage. This can help you to pay off any personal loans, student loans, store cards or credit cards that you have, which can also have a follow-on effect of helping to improve your credit score even further. END
 TITLE: Reason Why Banks Sell Mortgage Loans CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: August 15, 2017_\nA notice arrives from your mortgage company advising you they are selling your loan to another company. Why did this happen?\nTypes of Lenders\n----------------\nFirst we need to distinguish between the two types of lenders: Mortgage Banks and Depository Institutions.\n*   **Mortgage banks** are state-chartered temporary lenders who must sell the loans they originate because they do not have the long-term funding needed to hold them permanently. While mortgage banks always sell the mortgages they originate, they may retain the servicing under contract with the buyer.\n*   **Depository institutions** are commercial banks, savings and loan associations and credit unions. They are chartered by both the Federal and State governments. They have the capacity to hold mortgages permanently in their portfolios.\nSelling Mortgages - Why Does This Happen?\n-----------------------------------------\nSo, why are you getting this notice that your loan has been sold to another institution?\n1.  They need to keep a large enough pool of money on hand to make loans to other people. For example: If they lent out 50 million dollars over a period of 10 years they would need to have started out with a half a million dollars of cash. How will they keep on lending? Most mortgages are for 30 years, effectively tying up that money for this amount of time.\n2.  They make more money this way. Mortgage bankers make a commission when they sell your loan to another company. If a banker makes a point on a package of loans worth a million dollars, he makes $10,000 dollars (1 percent of $1,000,000) in immediate profit by selling them. The banker then has freed up one million dollars which he can re-loan to other customers. If he writes $1,000,000 in new loans this month, he (or she) can make another $10,000 dollars in points by selling those next month.\nSo, if $1,000,000 worth of loans are sold each month, the banker would net $120,000 for the year on those points alone. Compare this to holding onto the loans. If he keeps that same $1,000,000 in loans and earned interest at say 8 percent, he would earn $80,000 in a year on that same million. It becomes clear that selling loans is more profitable.\n**Selling off the loans every month: 12 x ($1,000,000 x .01) = $120,000**\n**Keeping the loans and collecting the interest paid: $1,000,000 x .08 = $80,000**\nWho is Buying and Selling These Mortgages?\n------------------------------------------\nThese mortgage loans are sold on the secondary market, which mainly consists of two organizations, Fannie Mae and Freddie Mac. The secondary market is the place where mortgages are bought and sold by various investors. Secondary market investors include Fannie Mae, Freddie, various pension funds, insurance companies, securities dealers, and other financial institutions. All of the loans sold to Fannie Mae and Freddie Mac must meet certain guidelines for credit worthiness and repayment likelihoods.\nThe secondary mortgage market exists as a source of money for banks to lend out to home buyers in every state. This is done in two ways:\n*   Pay cash for mortgages that purchased from lenders and hold those mortgages in Fannie Mae's investment portfolio. The lenders, in turn can use that money to make more mortgages for more home buyers.\n*   Second the secondary market issues what are known as Mortgage-Backed Securities (MBS) in exchange for pools of mortgages from lenders. These MBS provide the lenders with a more liquid asset to hold or sell. MBS are highly liquid investments and are traded on Wall Street through securities dealers. END
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 TITLE: Understanding a Uniform Settlement Statement CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: August 15, 2017_\nA uniform settlement statement, or HUD-1 form, unlike the truth in lending statement, is the document to which you want to pay close attention. This document is intended to accurately reflect your true interest rate and costs and is the final mortgage settlement statement. If a loan officer neglects to tell you a few things (like the fact that you are not getting a par interest rate), it will show up in this statement.\nWhat is a HUD-1 Form?\n---------------------\nThe HUD-1 settlement statement is a standard government real estate form used to itemize all charges imposed upon a borrower and seller for a real estate transaction. \nWhen is a HUD-1 Form Required?\n------------------------------\nHUD stands for the Department of Housing and Urban Development. Then Congress enacted the Real Estate Settlement Procedures Act (RESPA), it authorized HUD to prepare and implement a uniform settlement statement. Recently, this form was updated with the intent of assisting potential homebuyers in fully understanding their costs. The HUD-1 must be used in any transaction where a federally regulated mortgage is involved.\nIf you applied for a mortgage on or before October 3, 2015, you should have received a HUD-1 statement. After October 2015, borrowers began receiving a form called the Closing Disclosure instead of a HUD-1 for most kinds of mortgage loans as a response to TILA RESPA Integrated Disclosures or simply TRID, which overhauled the way mortgages are now processed and closed.\nWhere Are HUD-1 Used Today?\n---------------------------\nThe HUD-1 settlement statement is still used today but only for reverse mortgages.\nWhen is a HUD-1 Provided to the Borrower?\n-----------------------------------------\nPrior to October 2015, RESPA stated that a borrower should be given a copy of the HUD-1 at least one day prior to closing. In actuality, changes to the HUD-1 could be done just hours before closing. Most buyers review this document with their real estate agent to make sure there are not any errors. When it comes to both the HUD-1 and the Closing Disclosure, don't assume the figures are correct. Mistakes happen and errors can be found at the last minute. Make sure all information and figures are accurate prior to signing the closing documents. END
 TITLE: Find Out if You Have Tier One Credit CONTENT: What is Tier One Credit?\n------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 10, 2017_\nIf you are in the process of buying a house, you may be hearing about Tier one credit or \"A\" type credit. This is one of the highest rankings issued by the nation's credit rating services. In general, it is applied to a consumer with a FICO score of 700 to 740 and above. A score of 660 to 699 would be considered average, or Tier 2 credit.\nAn excellent credit score can open doors for a consumer as well as save them money on interest and fees. When a consumer has a  Tier 1 rating, lenders can offer them low-interest loans with favorable terms. Ever see those car commercials that speak about \"well-qualified buyers?\" Chances are they are speaking about a Tier one scorer. Credit tiers are commonly used when negotiating car lease or loan terms. Excellent credit is seen as a positive indicator of the ability to pay obligations on time and live within one's means.\nCriteria For a Tier One Credit Rating\n-------------------------------------\nTier one credit has different meanings across various credit rating services. Fair Isaac considers its highest tier a credit score of 700 or above. Mortgage lender Freddie Mac rates 760 or above an A+. SmartMoney.com and PBS's \"Frontline\" show reports 760 or above as excellent.  The bottom of Tier one seems to change with the times so check the most recent minimum scores with your lending institution.\nBenefits to Tier One Credit\n---------------------------\nHaving high credit brings many benefits, not the least of which are discounts and savings on loans. Tier one credit holders have almost limitless access to credit, so there's little that they can't obtain. However, with increased credit comes increased risk. Excellent credit holders know that a key to keeping a good credit score is on-time payment of debts and a good debt-to-income ratio. As long as financial commitments are met, there are many opportunities to use the increased mobility to grow personal fortunes and invest for the future.\nWhat Goes Into Your Credit Rating\n---------------------------------\nThere are four types of credit items on your report: Mortgage loan, auto loans, credit card and other non-secured loans, and collections\/judgments. Here is an explanation of each.\n1.  Mortgage Loan.  A mortgage loan is considered secured loan, that is, the loan is secured through an asset (in this case, a piece of real estate). When you are applying for a mortgage, the lender needs to be sure that paying your mortgage payment is important to you. You should not have any late payments in the last two years.\n2.  Auto Loans.  An auto loan is another type of secured loan. Lenders consider your payment history on auto loans almost as important as mortgages. You should not have any late payments in the last two years.\n3.  Credit Cards or Unsecured Debt.  When it comes to these loans, lenders are much more forgiving. If you were late on making one of these payments, more than 30 days late but less than 60 days late, you should still be fine in the eyes of a lender. If you have a lot of credit lines showing up on your credit report, and you have two 30-day late payments, you should still be all right.\n4.  Judgments and Collections.  Judgments are usually an automatic loan turn down unless you have a really good explanation and proof to back it up. Collections are generally regarded the same way, unless it is a medical collection. Mortgage companies are extremely sympathetic about medical collections. They know that the medical profession often turns over unpaid accounts to a collection agency immediately, and often without notifying you.\nIf you have a bankruptcy. You may be considered to have \"A\" credit, even with a bankruptcy if:\n*   You have a good explanation for why you filed bankruptcy.\n*   You have re-established at least three new lines of credit since the dismissal of bankruptcy.\n*   Your bankruptcy was at least three and preferably four years ago.\n*   You have perfect credit since the discharge of bankruptcy. END
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 TITLE: Differences Between a Mortgage Broker and a Bank CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: August 10, 2017_\nThere was a time when most homebuyers obtained their mortgage loans through their local bank or their credit union. Today, there are a number of home-financing options available which make it hard for a first-time buyer to know which route to take. Knowing which lender is the right fit for you and your financial situation is imperative to be approved and getting a home loan. Which is right for you? Let's take a look at the difference between using a mortgage broker or using a bank (also called a direct lender) to secure your mortgage loan.\nWhat is a Mortgage Broker?\n--------------------------\nA mortgage broker is a type of middleman who represents many lenders and all of their loan products. The broker's goal is to match the loan product that best meets your needs at the best possible price. Once your loan is approved, you will usually deal directly with the loan originator or their mortgage service provider.\nWhat is a Bank or Direct Lender?\n--------------------------------\nBanks, mortgage banks, and credit unions are all considered direct lenders. That means, employees of that institution review your application and make the decision on whether or not they are going to lend you the money to buy a house. Typically, the bank will eventually sell your loan on the secondary market after a few month of closing.\nBenefits of Using a Bank or Direct Lender\n-----------------------------------------\nNo matter what people will tell you, your best deals usually found using a direct lender. This is because there aren't a lot of add-on fees and middlemen who touch your loan and get paid for it. Plus, these guys do a volume business and therefore can cut corners on costs. The employees generally don't get a commission, just an hourly rate, so they aren't looking for ways to charge you extra. They also may lend out their own money, making money through the servicing of a loan, not in charging origination fees.\nOne of the reasons that a bank is cheaper: Banks don't give out loans to anyone without 'A' credit, job stability, long-time residence and good income. If you fit their criteria, giving you a loan is practically automatic and follows the same procedure every single time, without extra work or effort on the part of the bank.\nAs we stated, the banks make money by processing a cookie cutter type of loan. If you don't fit the 'A' profile in job, credit, and income, forget it: why should the loan officer do any extra work if and not be paid for it? Your loan gets pitched in the reject pile automatically. It's not that you're not a good loan risk, but look at it from the loan officer's point of view.\nBenefits of Using a Mortgage Broker\n-----------------------------------\nIn the mortgage broker world, you usually pay higher fees\/interest rate for getting your loan through. The sharp loan officer can take a look at your application and know in advance how much effort it will be to get your loan through the system. Not every broker handles difficult loans, most prefer handling 'A' clients. Again, it's easier, like the guys working in the banks: they'd rather make a lower commission for less hassle and go for volume.\nSo why would an 'A' client go to a broker? The reasons are numerous: clients may not have tried the bank, the broker actually has a better deal, either in interest or fees, or their realtor recommends them. Usually the broker, if they're good and have been in the business a while, has a regular clientele consisting of real estate agents or referrals by past satisfied customers. Buying a house is very stressful; a competent, hand-holding professional may be a service worth paying for. Keep this is mind, it's one of the things you should consider for when shopping for a loan.\nRisks of Using a Direct Lender\n------------------------------\nThe only risk that comes to mind when dealing with a direct lender is the limited choice of products. Direct lenders only offer their own programs so if you don't fit into their criteria, you won't get a loan from them.\nRisks of Using a Mortgage Broker\n--------------------------------\nSome mortgage brokers attempt to increase their profits by writing in hidden costs into your loan. The best tip we can give you to avoid getting taken to the cleaners on closing costs is to know the loan process and ask a lot of questions about the fees and charges.\nWhich Lender is Right For You?\n------------------------------\nHere is a simple breakdown into what kind of borrower are you and what will be the best fit for your lending needs.\n*   Excellent credit, access to financial documents, long employment history - Bank or Mortgage Broker\n*   Self-employed, don't want to share data about income or assets - Mortgage Broker\n*   ARM shopper, relationship customer with many accounts at 1 institution - Bank\nTips for Working with Lenders\n-----------------------------\nIf you are still trying to figure out which lender fits your needs, here are some tips for finding and working with a lender.\n1.  Get recommendations by asking friends and neighbors for suggestion, especially if they've recently obtained a loan.\n2.  Check credentials of the mortgage bankers. These are regulated by either your state's department of banking or division of real estate. Check with the agency to see if a lender is in good professional standing.\n3.  Do your homework on the mortgage loan processes and learn about typical mortgages and ask questions when something does not look right. END
 TITLE: Yes You Can Buy a Home with Bad Credit CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: August 14, 2017_\nFor millions of families, the American dream of owning a home has been hijacked by the American nightmare — bad credit. What’s worse is that many people in this situation see only see two options — 1) accept their fate and give up on the dream completely, or 2) use their subprime credit score, _as is_, to take out a high-interest mortgage that ends up costing more than they can practically afford.\nFortunately, there is a third option for homebuyers with bad credit — a combination of initiative and patience to improve your credit _before_ buying a home.\nFind Out Your Credit Score\n--------------------------\nYou may already have some idea of where your credit score stands, but keep in mind that it fluctuates constantly. As you may already know, there are a number of different credit scores out there, from the official FICO score to the Vantage scores used by the three major credit bureaus.\nIt’s a good idea to track each of these.\nYou’ll have to pay for your FICO score at MyFICO.com. But the process of cleaning up your credit could be a lengthy one and you don’t want to have to pay to see your FICO score every time you want to check in on your progress. For that, you can rely on your Vantage scores, all of which can be accessed for free.\n*   Experian VantageScore through Credit.com and CreditSesame.com\n*   Equifax VantageScore through Quizzle.com\n*   TransUnion VantageScore through CreditKarma.com\nWhile your Vantage scores will not be the same as your FICO score, they should at least reflect improvements, giving you some indication that your efforts are paying off.\nIn other words, your Vantage scores are ones you can easily track for free on a monthly basis, while you may just want to check your FICO score every 3 to 6 months.\nObtain All Three Credit Reports\n-------------------------------\nAgain, you may have some idea of what’s on your credit reports, but it’s time to go through them with a fine-tooth comb.\nIf it’s been more than a year since you’ve seen them, you are entitled to a free copy from each of the major credit bureaus — Experian, Equifax, and TransUnion. And yes, you need all three, as there could be things on one credit report that aren’t on another.\nSpend Six Months Working to Improve Your Credit Score\n-----------------------------------------------------\nOnce you have your credit reports, mark erroneous or negative items. Then dispute these listings with the appropriate credit bureau.\nThis can be an especially effective tactic for old credit card debt.\nThe older it is, the more times your old credit card debt has probably been sold to a new debt collector. But when the debt changes hands, documentation supporting your responsibility for the debt often doesn’t get included in the transfer.\nThis means that, through the debt validation process, collectors may not be able to prove you owe the debt, in which case it must be removed from your credit reports.\nBeyond cleaning up negative listings already on your credit reports, be sure to:\n*   Pay all your bills on time, _every_ time.\n*   Rework your budget to pay down any existing debt.\n*   Only charge as much to your credit cards as you can afford to pay off within 30 days.\n*   Avoid using more than 30 percent of your available credit.\n*   Avoid applying for additional lines of credit.\nOf course, if you don’t already have active credit cards, it may be in your best interest to apply for a _secured_ credit card. Just be sure of two things:\n1.  It is one that reports to the credit bureaus, and\n2.  You only charge as much to the card as you can pay off by the end of every month.\nMeet With Lenders and Shop Around for the Best Loan\n---------------------------------------------------\nWhile you may need up to a year to see a significant improvement in your credit score, meeting with lenders after 6 months of credit repair will inform your efforts going forward.\nYou’ll not only find out what kind of loan you qualify for, but lenders should be able to advise on the most effective means of improving your credit score faster.\nJust how good does your credit score need to be? At the very least, work to get your score above 660, though 700 and above would be more ideal.\nThough this process may seem a lengthy, it’s nothing compared to the life of a home loan. Taking the time and making the effort to do it right is something you’ll thank yourself for every time you make a mortgage payment you can afford. END
 TITLE: Foreclosure Alternatives and How to Avoid Foreclosure CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: August 14, 2017_\nA press release issued by RealtyTrac in January of 2017 stated there were 933,045 properties with foreclosure filings in 2016, which was down 14 percent from 2015 to a new 10-year low. Since its peak of 2.9 million properties with foreclosure filings in 2010, it seems there has been a slow downward trend. Counter to the national trend, 12 states posted an increase to overall foreclosure activity in 2016 compared to 2015, including Deleware (up 45 percent); Rhode Island (up 29 percent); Massachusetts (up 21 percent); Connecticut (up 21 percent); and Hawaii (up 20 percent). Foreclosure is financially and psychologically devastating to families and affects the stability of their lives but there are ways you can avoid going through a foreclosure.\nPossible Reasons for Foreclosure\n--------------------------------\nMany homeowners who cannot afford their house payments simply walk away because they don't realize that banks and mortgage companies may be willing to work with them in an effort to avoid foreclosure. Foreclosures are costly and time-consuming for financial institutions, and depending on the state in which you live, the process can take months. Besides valuable time, foreclosure costs a considerable amount of money, and lenders would much rather keep the lines of communication open and work with those who can't pay their house payments to find a mutually beneficial solution. They may not be aware of the alternatives, but there are some alternatives available for those who qualify.\nAlternatives to Foreclosure\n---------------------------\n**FORBEARANCE PLAN:**  Forbearance means you are allowed to delay or reduce mortgage payments on a temporary basis with the agreement that another option will be used at the end of that time to bring your account to current status. Most lenders have a forbearance program available, but you need to be diligent and immediately contact the lender to report a temporary loss, hardship and\/or reduction in income and to request a forbearance agreement. Your lender, if in agreement, will then temporarily cease legal actions, or not proceed initially, whichever the case may be.\nLenders may agree to combine your forbearance with a reinstatement or a repayment plan if you can provide adequate assurance that you can raise the needed funds to bring your account current by a specified date. Be sure you are provided this agreement in writing. Forbearance programs are best for people who have experienced sudden unexpected income loss or debt, and simply need some extra time to readjust their spending and recover financially.\n**SHORT SALE:**  Those who can't afford to pay their house payments and know they can't afford to keep their home can request a short sale. A short sale is when a lender accepts a discount or shortage on a mortgage balance to avoid a possible foreclosure auction or bankruptcy. Depending on your particular situation, this could be one of the best alternatives to foreclosure. Mortgage companies and banks that offer a short sale as a option are sometimes willing to take less than the amount owed on the home.\nDepending on circumstances, lenders are often willing to completely forgive the homeowner of the debt. In many cases, the homeowner and lender have certain provisions that must be adhered to when transacting a short sale. For instance, many lenders require the home to be on the market for a minimum of 90 days, have established maximum commission levels for any real estate agents involved, and may require the broker be a member of the Multiple Listing Service (MLS). A hardship letter explaining the reasons for financial problems as well as a list of debts and income are required, as well as any other bank-specific paperwork and forms. If you can't pay your house payments and can prove financial hardship, a short sale could be one of the most viable alternatives to your financial problems.\n**DEED IN LIEU OF FORECLOSURE:**  As a last resort, you may be able to voluntarily \"give back\" your property to the lender. This won't save your house, but may increase your chances of qualifying for a mortgage loan in the future. A deed in lieu of foreclosure may be a viable option for individuals who can verify they are incapable of paying their mortgage payments due to financial hardship. This option may save lenders the time and expense caused by homeowners who abandon their homes, and it can be one of the best long-term solutions for all concerned.\nBefore most lenders will offer a deed in lieu of foreclosure, a typical requirement is that the house must be listed for sale at fair market value. The homeowner needs to demonstrate that they are trying to find a solution, therefore lending credibility to the homeowner through the action of actively trying to sell the home. If the market is stagnant and the home doesn't sell, and you qualify for a deed in lieu of foreclosure, the lender may allow you to sign off on the house and walk away without owing on the mortgage.\nThe deed in lieu of foreclosure offers several advantages to both the borrower and the lender. The principle advantage to the borrower is that it immediately releases him\/her from most or all of the personal indebtedness associated with the defaulted loan. The borrower also avoids the public notoriety of a foreclosure proceeding and may receive more generous terms that he or she would in a formal foreclosure.\nThe alternatives above are the three most common situations utilized to avoid foreclosure. Contingent on the type of mortgage loan you have, there may be others. Specifically: if you have a Federal Housing Insured (FHA) loan, you will want to contact HUD\/FHA for guidance. The Department of Housing and Urban Development (HUD) has been instrumental in establishing guidelines to assist homeowners experiencing financial hardships. The goal is to offer financial alternatives to foreclosure, while allowing lenders to make determinations based on certain risk criteria.\nAdditionally, here is a link to a website which provides guidance applicable to homeowners with FHA Insured loans.\nHow Will These Alternatives Affect My Credit?\n---------------------------------------------\nWe went right to the myfico.com \"Credit Education Center\" to ask that question. Here is the answer verbatim:\n_\"The common alternatives to foreclosure, such as short sales, and deeds-in-lieu of foreclosure are all \"not paid as agreed\" accounts, and considered the same by your FICO score. This is not to say that these may not be better options for you from a financial perspective, just that they will be considered no better or worse for your FICO score.\"_\nIf you are considering bankruptcy as an alternative to foreclosure, that may have a greater impact to your FICO score. While a foreclosure is a single account that you default on, declaring bankruptcy has the opportunity to affect multiple accounts and therefore has potential to have a greater negative impact on your FICO score. END
 TITLE: Foreclosure Alternatives and How to Avoid Foreclosure CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Taxes on a Mortgage Settlement Payment CONTENT: Will You Owe Income Tax on a Mortgage Settlement Payment?\n---------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 15, 2017_\nIf you are one of the millions of borrowers affected by illegal mortgage loan servicing from January 1, 2009 to December 31, 2010, you deserve compensation for your loss and suffering. To that end, eligible borrowers will receive a cash settlement. Unfortunately, the size of the payments pale in comparison to the scope of the inflicted damage. And it doesn't help matters that _**these payments are considered income for which borrowers are, indeed, expected to pay income tax**_.\nWhat is the Independent Foreclosure Review (IFR) Settlement?\n------------------------------------------------------------\nThe IFR settlement ceases the review process of individual mortgage loan files that was instigated upon discovery of deficient practices in mortgage loan servicing and foreclosure processing. Settling and ceasing the review process is intended as a means of providing financial compensation more quickly to eligible borrowers.\nWho is Eligible For An IFR Settlement Payment?\n----------------------------------------------\nThose eligible for an IFR settlement payment include 4.2 million borrowers whose primary residences were in foreclosure between January 1, 2009, and December 31, 2010.\nWhat Size Payment Can You Expect to Receive in An IFR Settlement?\n-----------------------------------------------------------------\nThe amount of each eligible borrower's settlement payment will vary, but may be as high as $2,000, the size of which cannot be subject to borrower dispute.\nWill You Be Notified If There Are Taxes Owed on an IFR Settlement?\n------------------------------------------------------------------\nIf you receive a settlement payment of $600 or more, your loan servicer is required to file a form with the IRS, a copy of which you should receive in the first quarter of 2014. Though loan servicers are not required to file any such form for payments of less than $600, you are still required to pay taxes on the payment.\nWhich Loan Companies Are Participating in the IFR Payment Agreement?\n--------------------------------------------------------------------\nAccording to the Office of the Comptroller of the Currency, loan servicers participating in the IFR payment agreement include:\n*   America's Servicing Company\n*   Aurora Loan Services\n*   BAC Home Loans Servicing\n*   Bank of America\n*   Beneficial\n*   Chase\n*   Citibank\n*   CitiFinancial\n*   CitiMortgage\n*   Countrywide\n*   GMAC Mortgage\n*   HFC\n*   HSBC\n*   MetLife Bank\n*   National City Mortgage\n*   PNC Mortgage\n*   Saxon Mortgage\n*   Sovereign Bank\n*   U.S. Bank\n*   Wachovia Mortgage\n*   Washington Mutual (WaMu)\n*   Wells Fargo Bank, N.A.\n*   Wilshire Credit Corporation\nIf You Receive an IFR Settlement Payment, Will Your Mortgage Loan File Still Receive a Third-Party Review?\n----------------------------------------------------------------------------------------------------------\nNo. The IFR settlement stops the review process for participating servicers. Therefore, there will be no determination of wrongdoing on individual loans.\nDoes That Mean You Cannot Take Any Other Legal Action Against Your Loan Company?\n--------------------------------------------------------------------------------\nNo. The IFR settlement in no way prevents you from taking other legal action against your loan servicer.\nWill The Foreclosure Process Cease?\n-----------------------------------\nNo. However, you may continue to pursue foreclosure alternatives with your servicer. If you are already pursuing other options, such as a loan modification, receiving IFR settlement money will in no way affect that process. In fact, in addition to the IFR settlement cash payments, participating loan servicers are required to provide $5.7 billion in foreclosure prevention, which may include loan modifications, short sale and forgiveness of the remaining balance of the loan after the short sale or foreclosure is completed. That said, there is no guarantee your loan will be one that qualifies for relief.\nWill Your Credit Improve If You Receive an IFR Settlement Payment?\n------------------------------------------------------------------\nNo. However, you can and should dispute any and all negative listings on your credit report. END
 TITLE: Alternative to Foreclosure May Be a Short Sale CONTENT: ###### Written by: Kristy Welsh\n**Ingredients Needed**\n1.  Homeowner with a mortgage balance that's higher than the current value of their home (a.k.a. \"underwater\")\n2.  Case of financial hardship (loss of income, loss of renter, balloon payment looming, medical emergency, etc, etc)\n3.  A sprinkling of sage advice (from a lawyer or tax professional)\n4.  Large dollops of persistence and perseverance (from you and your realtor)\n5.  Generous pinches of patience (from you, your realtor, and your potential buyer)\nClearly I've been watching too much TV this winter, because I'm tempted to mix the Food Channel with HGTV, and toss in Lost, to suggest a new reality show called Short Sale Stories.\nPicture it. Nice people. Faceless villains (the banks). Home threatened. Future uncertain. Hopefulness alternates with despair, week after week, until the final episode when the bank approves the short sale. Or, the bank forecloses.\nWhat is a Short Sale?\n---------------------\nA short sale is a viable option for homeowners who find themselves owing more on their mortgage than their house is now worth. The process is slow and aggravating and paperwork intensive, and the outcome is never certain until the deal closes, but the banks seem to be getting better at it. They have to. Many owners who bought at the height of the market are upside-down on their mortgages in today's economy. If they need to sell now, chances are it will be a short sale.\nA short sale is generally less hurtful to your credit than a foreclosure would be. Though the credit scoring model is a black box and no one can accurately predict the effect of any one item, according to the National Association of Realtors, a foreclosure can lower your credit score by 200 points or more, and remains public record (and on your credit history) for 7 years. A short sale, on the other hand, could lower your credit score by as little as 50 points if you are current with other payments. Your lender can report the short sale as Paid in full - Paid as Agreed, or Paid - Settled in Full for Amount Less than Owed, or Paid - Unrated. True, this less than perfect mark will also remain on your credit report for 7 years as well, but it's better than a foreclosure.\nHow to Pursue a Short Sale\n--------------------------\n*   First talk to your lawyer or tax advisor so you understand what a short sale will mean to your financial future.\n*   There are other choices on the menu you might consider:\n    *   Handing your house keys back to the bank (deed-in-lieu); or,\n    *   foreclosure which can offer anti-deficiency protection in some states such as Arizona.\n*   If a short sale is the best answer in your particular situation, then talk to your bank and explain your hardship. They should send you paperwork to get things started.\n*   Finally, find a good realtor to list your home for sale and to help you find a buyer who is patient enough to stick with you through the bank negotiations. It can take several months.\nFind a Knowledgable Realtor\n---------------------------\nYour realtor will be the point of contact between you, the bank, and potential buyers. You will want one who is patient, persistent, and knowledgeable about short sales. Choose wisely for the most palatable result.\nYou can read our article about the other side of the fence — **buying** a short sale property. END
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 TITLE: Subprime Mortgage Crisis and HOPE Now Inititative CONTENT: Find Help Through the \"Hope Now\" Initiative\n-------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 15, 2017_\nYou found the home of your dreams, perhaps a few years back, when the housing market was sizzling red-hot. Your realtor and mortgage broker or banker were eager to help and getting a loan was a snap. At that time, there were so many lenders willing to hand out money to home buyers — no need to verify their income in many cases — what a trusting bunch we were. How short sighted \"we\" were, those people who signed on for loans that they knew they could not afford over the long term. The dream home has since transformed into a nightmare, with unaffordable payments due to the adjustable rates \"we\" didn't really pay attention to or just ignored while signing on the dotted line. You can't sell it, because everyone else is trying to unload their nightmares as well, and you either need a miracle or will facing a short sale, foreclosure, and possible bankruptcy if you don't do something quick. What to do?\nHistory on the Housing Market Crash\n-----------------------------------\nThe crisis began in the United States with the bursting of the housing bubble and high default rates on \"subprime\" and other adjustable rate mortgages (ARMs). Subprime lending is a generally defined as the practice of making loans to borrowers who may not qualify for \"A-grade\" market interest rates because of problems with their credit history or the inability to prove that they have enough income to support the monthly payment on the loan for which they are applying. A long-term trend of rising housing prices and misleading loan incentives encouraged investors and homebuyers to take on new or additional mortgages, with many believing they would be able to sell quickly at a profit or refinance at more favorable terms later. However, once housing prices started to slide downward starting around 2006 in many parts of the country, refinancing became more difficult. Defaults and foreclosure activity increased dramatically as ARM interest rates reset higher. During 2007, nearly 1.3 million U.S. housing properties were subject to foreclosure activity according to a realtytrak.com report, up 79 percent versus 2006. \nHelp for Troubled Borrowers\n---------------------------\nWith so many people in our country who faced unmanageable mortgage payments due to their subprime mortgages resetting to higher rates, on December 6, 2007 President George W. Bush announced the \"Hope Now Alliance. This was a cooperative effort between the United States government, counselors, investors, and lenders to help homeowners who could not pay their mortgage due to escalating interest rates or other reasons. The most significant aspect of the initiative was an interest rate freeze that gave some borrowers the ability to cope financially with adjusting interest rates and the timee needed to work out a solution.\nThe most important thing you need to do if you are facing similart issues, is to acknowledge the problem as quickly as possible and start the process of seeking a solution immediately, before it is too late. The following steps and recommendations provides some useful guidance for troubled borrowers who may be able to take advantage of the \"Hope Now\" initiative and gain the necessary assistance to prevent foreclosure or bankruptcy.\n*   Call the National Hotline established by the Hope Now Initiative immediately at 1-888-995-HOPE! The hotline is staffed 24\/7 with HUD-approved counselors affiliated with the non-profit Homeownership Preservation Foundation.\n*   The counselor will gather information regarding the callers specific financial situation, in order to determine their eligibility to participate in the Hope Now initiative. (more on eligibility below). Be prepared to provide income verification and monthly expense information or you may have to make multiple calls.\n*   Based on the information provided, the counselor will explain what options are available and make a recommended course of action for the individual seeking assistance. Typically, this involves having the borrower call their mortgage servicer to initiate a workout plan.\n*   In some cases, the counselor may refer the individual to another counselor local to the borrower for in-person assistance. In other cases, the counselor will actually contact your mortgage servicer directly for you, providing you agree and provide written authorization for the counselor to act on your behalf.\n*   The loan servicer\/lenders are more likely to negotiate and be flexible with market conditions as they are; the last thing they want is your property back. \n*   Servicers then determine the borrowers eligibility for refinancing based on credit history, FICO score, current loan amount and loan-to-value ratio. Although the initiative does not preclude it, servicers try to help borrowers avoid prepayment penalties in a refinancing.\n*   Some borrowers with ARM's who are current on their mortgage, but don't have the financial ability to stay current once their interest rate resets (and can't qualify for refinancing using traditional methods) may be eligible for an interest-rate freeze. This freeze does not necessarily apply to those who are having difficulty meeting their mortgage commitments due to job loss or medical reasons; however, loan servicers may still be willing to consider a workout plan for these circumstances, it is just not covered under the \"Hope Now\" initiative.\n*   The initiative also has provisions to assist homeowners unable to meet payments regardless of interest rate reset issues. In these cases, counselors look to find the least painful loss mitigation strategy, such as a short sale (selling at a deficiency) or deed in lieu of foreclosure (giving the property back to the bank, essentially).\nEligibility\n-----------\nThe initiative applies ONLY to homeowners with purchase-money mortgages; NOT home equity loans. In other words, if you refinanced since your original home purchase, you are out of luck. Additionally, borrowers must have secured their financing during the \"height\" of the housing boom, defined by the initiative as between January 1, 2005, and July 31, 2007. Home owners are eligible for the initiative if they are current and expect to stay current after the rate resets, but are looking for a more appropriate loan; if they are current but face possible default due to the rate reset; or, if they are in default prior to the rate reset.\nIn Summary\n----------\nThe Hope Now initiative was not designed to simply bail out those who irresponsibly took out a mortgage they could not afford. According to President Bush, \"There are some responsible home owners who can avoid foreclosure with some assistance\". While clearly many of these problems may have been \"self-inflicted\" by people who were looking to make a fast dollar or given misleading information, the effect of the entire subprime fiasco on our economy is a problem that affects us all. Understanding what you can do to minimize the fallout while learning from your (or others) mistakes is certainly valuable information. If you feel you are in jeopardy of being able to meet your mortgage payment commitments, the most important thing is to be proactive, and start the process of seeking a solution as soon as possible; there is help out there!\nFor more information, visit www.hopenow.com END
 TITLE: Subprime Mortgage Crisis and HOPE Now Inititative CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Signs You Could be a Victim of a Mortgage Relief Scam CONTENT: Don't Become a Victim of a Mortgage Relief Scam\n-----------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 14, 2017_\nThere are few things more stressful than the threat of losing your home. So it's no wonder so many people fall victim to mortgage relief scams. While the claims may sound too good to be true, those facing the alternative (monthly payments they cannot afford or, worst case, foreclosure) suspend disbelief.\nFederal and State officials filed lawsuits accusing dozens of companies of ripping off struggling homeowners by falsely promising help in avoiding foreclosures or lowering mortgage payments while collecting millions of dollars in illegal upfront fees. Don't fall victim to one of these companies!\nTips to Avoid Mortgage Relief Companies\n---------------------------------------\n*   **Make guarantees.** Only your lender can offer a guarantee of any kind regarding your loan, be it a loan modification or stopping the process of foreclosure. Even a money-back guarantee should be avoided at all cost. You'll never see that money again.\n*   **Ask for an upfront fee.** The Mortgage Assistance Relief Services (MARS) Rule makes it illegal for any mortgage relief company from asking you for money to be paid prior to services provided. In fact, they may only collect fees from you in the event that a mortgage relief offer is made from your lender, and only after agree to accept it.\n*   **Require that you make payments via wire transfer, cash, or cashier's checks.** You can be sure they're up to no good.\n*   **Claim to have a special relationship or affiliation with the lender or the government.**  Mortgage relief companies do not have special relationships with your lender, period.\n*   **Claim to be lawyers or to have some affiliation with a law firm.**  While lawyers may offer mortgage relief services, verify that they are, indeed, members of the bar association via the National Organization of Bar Counsel.\n*   **Make fantastic claims of success rates among clients.**  Common are success rate claims of 90 to 99 percent.\n*   **Ask you to make your monthly mortgage payments directly to them.**  The only place to send your monthly mortgage payments is directly to your lender. No reputable company would ask to serve as a third-party collector of this money. It's safe to say your mortgage lender will never see any of those payments.\n*   **Say they want to do a _forensic audit_.**  A forensic audit is a process of reviewing your mortgage papers to be sure your lender made no violations of the law. However, forensic audits almost never turn up such information and, in which case it in no way affects a lenders modification of your loan or foreclosure actions.\n*   **Ask you to surrender the title of your home to them so they can rent to you.**  They may offer for you to buy back the home, but it's usually too expensive for you to do so. Or, they may raise the rent on you over time until it is too much for you to afford.\n*   **Ask you to sign over the deed to your home so they can find a buyer for you.**  In this scenario, they rent out the home until the lender finally forecloses on the property.\n*   **Ask you to sign papers so as to make your mortgage current.**  Buried in this paperwork is likely verbiage surrendering the title of your home.\nTalking to your lender is always a better alternative to a mortgage relief company. Your lender doesn't want you foreclosing either, so you may be surprised at what they may be able to work out. You may also find help through the Homeownership Preservation Foundation, a nonprofit that offers assistance with the loan modification and foreclosure prevention process.\nIf you feel you may have fallen victim to one of the above scams, call your local State Attorney General office immediately. They will assist you in any legal action you may have to take against this company. END
 TITLE: Signs You Could be a Victim of a Mortgage Relief Scam CONTENT:    |  |  |  | \n: . END
 TITLE: Locking the Interest Rate on a Mortgage Loan CONTENT: When is the Best Time to Lock a Mortgage Loan Interest Rate?\n------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 14, 2017_\nYou have been house hunting for months and you finally found the perfect house. Now comes the mortgage loan application and finding a good lending institution. But all the while, you have been watching the mortgage interest rates fluctuate up and down and you are wondering what will the rate be when your loan closes? What if it goes up a percent? That could cost you thousands of dollars in interest! What can you do?\nLoan Lock and Locking Your Interest Rate\n----------------------------------------\nA loan lock is securing a specified interest rate on a mortgage loan that is in the process of being approved. A loan lock establishes the interest rate that a borrower will pay as long as the loan closes before the end of the lock period. Lock periods typically last from 30 to 60 days, though in markets where the loan approval process is slow, the lock period can last as long as 90 days.\nThings to Look for When Locking Your Interest Rate\n--------------------------------------------------\nWhen deciding to lock a loan, there are 3 things to consider:\n1.  Interest rate\n2.  Points\n3.  Length of the lock period\nSome borrowers can pay extra for an extended loan lock. The interest rate will be a bit higher or the points will reflect the loan lock fee. That's because the lender is taking on the risk that rates could go up while the transaction is processed, so the lender could end up losing money if the loan is funded at a lower-than-market interest rate. But locking the loan gives the borrower peace of mind and real estate experts recommend that borrowers lock their loans.\nAre You Committed to the Loan Once You Lock It?\n-----------------------------------------------\nLocking your interest rate down does not mean the borrower is married to that lender. If the rates do go down, the borrower is free to go elsewhere prior to the loan closing — but they won't tell you that up front! Chances are, if the borrower did try to pull out on the loan, the lender would more than likely meet the demanded interest rate. Think about it, why would they want to lose the business?\nAre There Any Disadvantages to a Loan Lock?\n-------------------------------------------\nThere is rarely a reason you would NOT want to lock in your loan. The main reason to lock your loan is to protect yourself against the volatility of the marketplace, and, it's a good idea to lock your rate once you are satisfied with the rate so there are no surprises in the end.\nHow Are Loan Lock Rates Calculated?\n-----------------------------------\nIt all depends on the lending institution. Let's say for example, one lender may have a 30-day rate lock which might cost the borrower one-half of a point; and a 60-day rate lock might cost one full point. These fees are not paid up front but are paid at closing. So, if the loan never closes because the borrower has changed their mind or gone elsewhere, the fees are never paid. If a borrower doesn't want to pay for the loan lock through points, the fee can be computed into the interest rate. END
 TITLE: Underwriting Guidelines for Mortgage Loans CONTENT: Underwriting Guidelines for the Average Mortgage Loan\n-----------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 14, 2017_\nUnderstanding mortgage underwriting guidelines will help you understand your loan options when purchasing or refinancing a home. Now that you have found your dream house, you are going to need to apply for a mortgage loan. Your realtor will either recommend a banking institution or you may already have one in mind. You will be dealing with a loan officer who will be compiling all the data on you to see if you qualify for a loan to pay for this house. All lending institutions have different Underwriting Guidelines set in place when reviewing a borrower's financial history to determine the likelihood of receiving on-time payments. The primary items reviewed are listed below.\nType of Income\n--------------\nIncome is one of the most important variables a lender will examine because it is used to repay the loan. Income is reviewed for the type of work, length of employment, educational training required, and opportunity for advancement. An underwriter will look at the source of income and the likelihood of its continuance to arrive at a gross monthly figure.\n**Salary and Hourly Wages —** Calculated on a gross monthly basis, prior to income tax deductions.\n**Part-time and Second Job Income —** Not usually considered unless it is in place for 12 to 24 straight months. Lenders view part-time income as a strong compensating factor.\n**Commission, Bonus and Overtime Income —** Can only be used if received for two previous years. Further, an employer must verify that it is likely to continue. A 24-month average figure is used.\n**Retirement and Social Security Income —** Must continue for at least three years into the future to be considered. If it is tax free, it can be grossed up to an equivalent gross monthly figure. Multiply the net amount by 1.20 percent.\n**Alimony and Child Support Income —** Must be received for the 12 previous months and continue for the next 36 months. Lenders will require a divorce decree and a court printout to verify on-time payments.\n**Notes Receivable, Interest, Dividend and Trust Income —** Proof of receiving funds for 12 previous months is required. Documentation showing income due for 3 more years is also necessary.\n**Rental Income** — _Cannot_ come from a primary residence roommate. The only acceptable source is from an investment property. A lender will use **75 percent of the monthly rent** and subtract ownership expenses. The Schedule E of a tax return is used to verify the figures. If a home rented recently, a copy of a current month-to-month lease is acceptable.\n**Automobile Allowance and Expense Account Reimbursements** — Verified with 2 years tax returns and reduced by actual expenses listed on the income tax return Schedule C.\n**Education Expense Reimbursements —** This type of reimbursement is not considered income. Only viewed as slight compensating factor.\n**Self Employment Income —** Lenders are very careful in reviewing self-employed borrowers. Two years minimum ownership is necessary because two years is considered a representative sample. Lenders use a 2-year average monthly income figure from the **Adjusted Gross Income** on the tax returns. A lender may also add back additional income for depreciation and one-time capital expenses. Self-employed borrowers often have difficulty qualifying for a mortgage due to large expense write offs. A good solution to this challenge used to be the **_No Income Verification Loan_**, but there are very few of these available any more given the tightened lending standards in the current economy. NIV loan programs can be studied in the Mortgage Program section of the library.\nDebt and Liabilities\n--------------------\nAn applicant's liabilities are reviewed for cash flow. Lenders need to make sure there is enough income for the proposed mortgage payment, after other revolving and installment debts are paid.\n*   All **loans, leases, and credit cards** are factored into the debt calculation. Utilities, insurance, food, clothing, schooling, etc. are not.\n*   If a loan has **less than 10 months remaining**, a lender will usually disregard it.\n*   The minimum monthly payment listed on a credit card bill is the figure used, not the payment made.\n*   An applicant who co-borrowed for a friend or relative is accountable for the payment. If the applicant can show 12 months of on-time cancelled checks from the co-borrower, the debt will not count.\n*   Loans can be paid off to qualify for a mortgage, but credit cards sometimes cannot (varies by lender). The reasoning is that if the credit card is paid off, the credit line still exists and the borrower can run up debt after the loan is closed.\n*   A borrower with fewer liabilities is thought to demonstrate superior cash management skills.\nCredit History\n--------------\nMost lenders require a residential merged credit report (RMCR) from the 3 main credit bureaus: **Trans Union**, **Equifax**, and **Experian**. They will order one report which is a blending of all three credit bureaus and is easier to read than the individual reports. This \"blended\" credit report also searches public records for liens, judgments, bankruptcies and foreclosures. See our credit report index.\nCredit report in hand, an underwriter studies the applicant's credit to determine the likelihood of receiving an on-time mortgage payment. Many studies have shown that past performance is a reflection of future expectations. Hence, most lenders now use a national credit scoring system, typically the FICO score, to evaluate credit risk. If you're worried about credit scoring see our articles on it.\nThe mortgage lending process, once very forgiving, has tightened lending standards considerably. A person with excellent credit, good stability, and sufficient documentable income to make the payments comfortably will usually qualify for an \"A\" paper loan. \"A Paper\", or prime loans, make up the majority of loans in the U.S. and are loans that must conform to the guidelines set by Fannie Mae or Freddie Mac in order to be sold by the lender. Such loans must meet established and strict requirements regarding maximum loan amount, downpayment amount, borrower income and credit requirements and suitable properties. Loans that do not meet the credit and\/or income requirements of conforming \"A-paper\" loans are known as non-conforming loans and are often referred to as \"B\", \"C\" and \"D\" paper loans depending on the borrower's credit history and financial capacity.\nHere are some rules of thumb most lenders follow:\n*   12 plus months of positive credit will usually get you into an \"A paper\" loan program, depending on the overall credit. FHA loans usually follow this guideline more often than conventional loans.\n*   Unpaid collections, judgments and charge offs must be paid prior to closing an A paper loan. The only exception is if the debt was due to the death of a primary wage earner, or the bill was a medical expense.\n*   If a borrower has negotiated an acceptable payment plan, and has made on time payments for 6 to 12 months, a lender may not require a debt to be paid off prior to closing.\n*   Credit items usually are reported for **7 years**. Bankruptcies expire after 10 years.\n*   Foreclosure — 5 years from the completion date. From the fifth to seventh year following the foreclosure completion date, the purchase of a principal residence is permitted with a minimum 10 percent down and 680 FICO score. The purchase of a second or investment property is not permitted for 7 years. Limited cash out refinances are permitted for all occupancy types.\n*   Short Sale — 2 years from the completion date and there are no exceptions or extenuating circumstances.\n*   Deed-in-Lieu of Foreclosure — 4 year period from the date the deed-in-lieu is executed. From the fifth to the seventh year following the execution date the borrower may purchase a property secured by a principal residence, second home or investment property with the greater of 10 percent minimum down payment or the minimum down payment required for the transaction. Limited cash out and cash out refinance transactions secured by a principal residence, second home or investment property are permitted pursuant to the eligibility requirements in effect at that time.\n*   Chapter 7 Bankruptcy — A borrower is eligible for an A paper loan program 4 years after discharge or dismissal, provided they have reestablished credit and have maintained perfect credit after the bankruptcy.\n*   Chapter 13 Bankruptcy — 2 years from the discharge date or 4 years from the dismissal date.\n*   Multiple Bankruptcies — 5 years from the most recent dismissal or discharge date for borrowers with more than one filing in the past 7 years.\n*   The good credit of a **co-borrower** does not offset the bad credit of a borrower.\n*   Credit scores usually range from 400 to 800. Changes to lending standards are occurring on a daily basis as a result of tightening lending standards, and can vary from lender-to-lender, so this information should be considered simply a guideline. For conforming loans, most lenders will lend down to a **FICO of 620**, with additional rate hits for the lower-end credit scores and loan-to-values. When you are borrowing more than 80 percent, they typically will not lend if you have a **FICO below 680**. The FHA\/VA program just changed their minimum required FICO to 620, unless you are qualifying a borrower with non-traditional credit. The few non-conforming loan programs that are still available typically require 30 percent down payment with a minimum FICO of 700 for self-employed and 650 for W-2 employees, and the loan-to-value will change with the loan amount.\n*   A credit score below 600 may require an Alternative Credit mortgage program.\nSavings and Checking Accounts\n-----------------------------\nLenders evaluate checking and savings accounts for three reasons.\n1.  The more money a borrower has after closing, the greater the probability of on-time payments.\n2.  Most loan programs require a minimum borrower contribution.\n3.  Lenders want to know that people have invested their own into the house, making it less likely that they will walk away from their life's savings. They analyze savings documents to insure the applicant did not borrow the funds or receive a gift.\nLenders look at the following types of accounts and assets for down payment funds:\n**Checking and Savings** — 60 days seasoning in a bank account is required for these funds.\n**Gifts and Grants** — After a borrower's minimum contribution, a gifts or grant is permitted.\n**Sale of Assets** — Personal property can be sold for the required contribution. The property should be appraised and a bill of sale is required. Also, a copy of the received check and a deposit slip are needed.\n**Secured Loans** — A loan secured by property is also an acceptable source of closing funds.\n**IRA, 401K, Keogh & SEP** — Any amount that can be accessed is an acceptable source of funds.\n**Sweat Equity and Cash On Hand** — Generally not acceptable. FHA programs allow it in special circumstances.\n**Sale Of Previous Home** — Must close prior to new home for the funds to be used. A lender will ask for a listing contract, sales contract, or HUD 1 closing statement.\nDebt vs Income Ratio\n--------------------\nThe percentage of one's debt to income is one of the most important factors when underwriting a loan. Lenders have determined that a house payment should not exceed approximately 30 percent of Gross Monthly Income. Gross Monthly Income is income _before_ taxes are taken out. Furthermore, a house payment plus minimum monthly revolving and installment debt should be less than 40 percent of Gross Monthly Income.\n**Example**\nAn applicant has $4,500 gross monthly income. The maximum mortgage payment is:\n$4,500 X .30 = $1,350\nTheir total debts come to:\n$500 Car  \n$20 Visa  \n$30 Sears  \n$75 MasterCard  \n\\----------------  \n$625 per month\nRemember, their total debts (mortgage plus other debts) must be less than or equal to 40 percent of their gross monthly income.\n$4,500 X .40 = $1,800\n$1,800 is the maximum debt the borrower can have, debts and mortgage payments combined. Can the borrower keep all their debts and have the maximum mortgage payment allowed? **NO!**\nIn this case, the borrower, since they have high debts, must adjust the maximum mortgage payment downward, because:\n$625 debts  \n$1350 mortgage  \n\\--------------  \n$1,975 - which is more than the $1,800 (40 percent of gross income) we calculated above.\nThe maximum mortgage payment is therefore:\n$1,800 - $625 (monthly debt) = $1,175\nSee our calculators to avoid doing these calculations by hand. END
 TITLE: Underwriting Guidelines for Mortgage Loans CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: How to Pay Off Your Mortgage Early CONTENT: Pay Off Mortgage Loan and Save Thousands\n----------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 15, 2017_\nHave you ever thought how nice it would be to not have a mortgage payment every month? Second only to the dream of buying a home is actually paying it off. It takes most of us 30 years, during which time we end up paying more in interest than we pay on the home's actual purchase price. So the sooner you can pay off your mortgage, the more money you'll save — thousands, if not tens-of-thousands, of dollars over the lifetime of your loan.\nWeigh All Your Mortgage Options Before Buying a Home\n----------------------------------------------------\nYour ability to pay off your mortgage starts well before your first payment is due; before you sign on the dotted line; even before you find the house you want to buy. If you're in the market for a home, the time is now to start thinking about paying off your mortgage:\n*   **Live Within Your Means.** If the purchase price on your home is so high relative to your income that it hampers your monthly cash flow, you won't have any money left over to make extra payments toward the principle on your home. Look for a lower priced home that will free up your money, not only for making extra payments on your home, but also so you have funds available to set aside for emergency living expenses.\n*   **Adjustable vs Fixed-Rate Mortgage.** The reason buyers choose adjustable rate mortgages is because interest rates start out low. Buyers often talk themselves into believing that by the time their interest rate goes up, they'll be making more money to help cover the difference. That is rarely the case. Homeowners with adjustable interest rates all too often find themselves in over their heads. In fact, paying off their mortgage becomes the least of their worries, instead struggling to make their mortgage payments at all. With fixed rate mortgages, there are no surprises. You know your payments will always stay the same. And if rates do fall, you can always refinance to take advantage of the savings.\n*   **No Penalty For Prepayment.** Under the terms of many mortgages, homeowners are penalized for making payments early, which is imperative to paying off your mortgage. So be sure to choose a mortgage that does not assign penalties for early payments. Also check to see how many extra payments are allowed per year, as this too may be limited.\nMake Extra Payments\n-------------------\nIt sounds simple enough because it is — the way to pay off your mortgage is make more payments toward the principle balance. Not only does this reduce the length of the terms of your loan but, as the principle shrinks, so does the interest. The complication, of course, is figuring out how to make extra payments works for you:\n*   **The Dollar-a-Month Plan.** Let's say you have a $150,000 fixed-rate mortgage at 6 percent. By adding an extra dollar to your $900 payment each month - one dollar the first month, two dollars the next month, three dollars the next month, and so on, you will pay your mortgage off quicker and save a lot of money in interest.\n*   **Make Bi-Weekly Payments.** Instead of making one monthly mortgage payment, say $900, break that amount into into bi-weekly payments of $450 each which will be 26 payments per year. So by the end of the year, you've made one full extra payment toward your mortgage. Add this up over a 30 year period and you will have paid off your mortgage quicker and saved money in interest.\n*   **The 15-year Switch.** Since interest rates on 15-year fixed-rate mortgages are generally lower than on 30-year loans, you might want to consider refinancing to pay off your loan faster. Keep in mind your monthly payment will go up so make sure this is affordable for you.\n**Extra Payment Plan**\n**Mortgage & Interest Rate**\n**Total Interest Saved**\n**Reduced Payments**\nThe Dollar-a-Month Plan\n$150K at 6% Fixed\n$52,000\nPaid Off in 22 years\nBi-Weekly Payments\n$150K at 6% Fixed\n$37,000\nPaid Off in 24 years\n15-Year Switch\n$150K at 5.5% Fixed\n$103,000\nPaid Off in 15 years\n*   **Send in Lump Sums.** We all want to do something special with that bonus from work, that tax refund, that family inheritance. Well, what could be more special than putting it toward ownership of a home?\n*   **Prioritize Making Extra Payments at the Beginning of Your Mortgage.** You'll be charged the most interest the first few years of your loan, as that is when your principle is its highest. So make it a priority to, one way or another, make extra payments toward the principle the first 5 to 7 years of your loan — a period of time in which you may otherwise pay in thousands, but only see a reduction of hundreds.\nMake Sure Your Extra Payments are Going Toward the Principle\n------------------------------------------------------------\nWhen you send in more money than is due for your regular monthly mortgage payment, lenders may not know what to do with it. Instead of putting it toward the principle, they may simply apply it to next month's mortgage payment. It's your job to specify, in the memo line of your check for example, that you want the extra money to go toward the principle of your loan. Then, equally important, is follow-up, making sure your extra payments are being applied accordingly.\nDetermine Whether You Need to Refinance\n---------------------------------------\nThe terms of your mortgage could make paying it off difficult. Consider refinancing if:\n*   **Yours is an Adjustable Rate Mortgage.** Refinance for a fixed rate so you're guaranteed the same payment throughout the length of your loan. As with any other expense, knowing what to expect helps you budget better, including extra payments.\n*   **You'd Like to Switch From a Long-Term Loan to a Short-Term Loan.** Over the course of a 30-year mortgage, homeowners typically pay more for the interest than the actual price of the home. If you can swing higher payments each month, you could refinance to a 15-year mortgage that would cut your overall interest paid in half. Of course, with this option you have no choice but to pay more toward your loan each month. Whereas if you opt to simply send in extra payments on an existing 30-year mortgage, there's room for adjustments depending on the dynamics of your financial situation.\nWhether you're already years into a mortgage, or in the market for your first home, the time is now to take control. With a little resourcefulness and discipline, you can pay off your mortgage sooner than later - saving money and buying peace of mind. END
 TITLE: How to Pay Off Your Mortgage Early CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
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 TITLE: Real Estate Information on Buying or Selling Your House CONTENT: Articles About Real Estate and Real Estate Agents\n-------------------------------------------------\n###### Written by: Kristy Welsh\nAt some point in your life, you are going to either buy or sell a house, condo, townhouse, or plot of land, and knowing how to go about this is not a small feat. There are lots of laws governing a real estate transaction and these laws vary state to state and country to country. Along with knowing all the legal ramifications of selling or buying real estate, you also have to be astute in the art of negotiating and closing a deal.\nWe have put together some articles designed to help you get your house ready to sell and find funding to pay for a new one. And with real estate getting harder and harder for the average person to afford, we also have an article addressing renting. Hopefully, this information will help you during your next real estate transaction.\nHow to Sell Your Home in a Slow Market — This article offers some great tips on how to sell your home quickly. From setting the right price to staging your house, all of this goes into selling your house fast.\nRelocation Tips — If you are moving to a new city or state, here are some helpful relocation tips to get you through this stressful time.\nHousing Recovery Act\nInformation on Buying Real Estate\n---------------------------------\nTips for Buying a Home \"As-Is\" — If you are thinking about buying a property that went into foreclosure, follow our tips to get the most out of an \"as-is\" property.\nIs Buying a Home Cheaper Than Renting? — You have to look at the current housing market and what that is doing to rental prices. The pendulum is swinging again, so read our article to see which way it has swung.\nUsing a Lease Purchase or Rent-to-Own Agreement to Buy a Home — As lenders make it harder and harder to get a loan, home sellers need to find creative ways to sell their house. A lease purchase agreement may be just the ticket.\nUsing Self-Directed IRAs to Purchase Real Estate — If you are thinking of buying an investment property, and want to use your IRA to pay for it, read this article to understand all the ins and outs of the IRA laws.\nUsing a Real Estate Agent or Internet to Buy or Sell Your House\n---------------------------------------------------------------\nHow to Find a Good Real Estate Agent — Buying or selling a house is stressful enough and finding a good realtor to get you through it is priceless. Here are some tips on finding a good real estate agent.\nUsing the Internet to Buy or Sell a Home — More and more people are browsing the Internet for their new home. See how to buy or sell a home on the Internet and get the most bang for your buck.\nGlossary of Real Estate and Home Buying Terms — Sometimes all that legal jargon can be a bit overwhelming to the average person. We have made a list of the most commonly used real estate terms and broke them down into easy to understand definitions. END
 TITLE: Manage Your Personal Finances and Save Money CONTENT: Manage Your Personal Finances — Save Money and Get out of Debt\n--------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 8, 2017_\nIf your money could talk, what would it be saying to you? If your money is saying \"bye-bye\" to you as it disappears casually out of your bank account, it might be time for you to manage your personal finances. In this article you'll find some great tips on whipping your money into shape and making it work for you, not the other way around. You will learn how to start saving money and using this money to get you out of debt. Managing your personal finances is the start to financial freedom.\nWhat is Personal Finance?\n-------------------------\nTo understand personal finance, take a step back and look at the big picture. Businesses have strict guidelines for managing their money and we expect them to do a proper job. We need to see ourselves as treasurers of our own little empire — and hold ourselves accountable for keeping our empire in the black. If that sounds daunting, don't worry, it's not that hard. You don't need an accounting degree to manage your personal finances. All you need is a bit of time to sit down and work out where your money is going. Read on to see how to do this.\n### #1: Keep Track of Your Money\nMoney is a bit like time — if you don't keep track of it, it seems to just disappear.\n**_\"Americans have an average cash spend of $233 per week, but can't account for at least 9 percent ($21) of that cash. That's more than $1,000 per year.\"_**\nAs you can see, it is all too easy to lose track of what you are spending. A coffee here, a magazine there, it all adds up. So if you're serious about managing your money, one of the best ways to start is to _**write down every single expense for a week**_. That includes coffees, lunches, shopping trips, groceries — everything. Each night when you get home, write down that day's expenses. Or better still, carry a notebook around with you and write down each spend as it happens (you could also use your mobile phone's note feature). That way you're less likely to forget something. This is a really empowering tip because you start to feel the beginnings of control over your money.\n### #2: Budget Your Money\nOnce you've got your weekly cash spending written down, it's time to whip your money into shape by using the dreaded \"B\" word — budget. The nice people over at mint.com have developed a free online budget planner. All you do is enter in your income and your expenses — including things like insurance, rent, car payments, and the cash expenses that you added up during the week. Most of these cash expenses will come under the heading of \"Entertainment\/Eating Out.\" The program will calculate your total income and total expenses and give you a final amount. If this is a negative amount, it means you are spending more than you are earning — ouch!\nIf you find you are in the red, you're going to need to do some work with your money to get it into shape. But before you launch into a full-on assault of your spending habits, try the following ideas to ease yourself into your new disciplined money regime.\n### #3: Change Your Spending Habits\nDon't rush in and make big changes all at once or you'll soon give up and go back to your overspending ways. Personal finance writer, Charles A. Jaffe, has been quoted as saying, \"It's not your salary that makes you rich, it's your spending habits.\" The first place to make changes is those daily cash spends that you wrote down in the first week. When you do the budget, you enter in the weekly amounts and it calculates the annual amount for each expense. You'll see that if you spend $4 a day on coffee, that equates to $1,040 per year. A $7 daily lunch purchase costs you $1,820 a year. Its incredible how these little amounts add up over time.\nIf all you do is reduce your coffee and lunch purchases to only every other day, you'll have $1,430 extra at the end of the year to spend on a holiday or pay off your credit card. And that's just the tip of the iceberg. You'll be sure to find other little expenses that you can cut back on.\n### #4: Manage Your Credit Cards\nCredit cards are like alcohol — used responsibly they are great — but it doesn't take much to lose control. If you carry a large credit card balance, you should find a credit card that offers zero percent interest on both balance transfers and purchases for a certain period of time. And never use your credit card for cash advances, because as soon as you withdraw the money you are charged huge interest rates (up to 25 percent, in some cases).\nIf you are really having problems managing your money, once you have transferred your balance to a zero percent APR card, try not to use the credit card at all until you have paid off the amount owing. Yes, you will miss out on frequent flyer points and other rewards, but the benefits of these programs are far outweighed by the satisfaction you'll feel when you start to get your money under control. Many banks offer prepaid or debit MasterCard and Visa cards, which allow you to use your own funds from your savings account for online purchases which require a credit card. They are a great idea. If you can only spend what you have in your bank account you'll be much less likely to splurge on something that you can't afford.\n### #5: Secret to Successful Saving\nOnce you've cut back on your spending and used those savings to pay off your credit cards, you can start thinking about saving and investing. Many financial planners and wealthy people will tell you the secret of successful saving is to _pay yourself first_. This concept was first introduced back in the 1920's by George Classon in his book, _\"The Richest Man In Babylon.\"_  Paying yourself first means setting aside 10 percent of your take-home pay in a separate savings account. The theory is that if you don't put aside this amount first, then it will be gobbled up by the daily expenses of living. Once your credit cards are under control, factor this amount into your budget and you'll soon see a very tidy nest egg developing. Whether you want to save for your first home, pay off your mortgage sooner or invest in shares and property, paying yourself first is a guaranteed way to achieve your financial dreams.\n### #6: Traps to Avoid\nOne of the biggest traps to avoid in personal finance are the \"No Interest, No Payments for 24 Months\" type of offers touted by the furniture and big box stores. These offers sound great at first, but there are often hidden monthly administration costs. Plus, if you don't repay the full amount within the time limit you will start to pay exorbitant interest rates on the remaining balance. If you do decide to take up one of these offers, don't just pay the minimum amount suggested on the monthly balance report you will receive. Take out your calculator and divide the total amount owing by the number of interest free months and pay that amount each month to ensure you have a zero balance at the end of the agreement.\nAnother trap to avoid is using your mortgage's redraw account for non-essential items. You should never use the extra money you've paid off your mortgage for things such as holidays or Christmas presents. Start a separate account for these types of things and keep your redraw amounts in place to help pay off your mortgage sooner, or use it for things that will add value and equity to your home — such as renovations.\n### #7: Plan for Future Life Events\nOnce you have your budget in place, you'll need to make adjustments as your life situation changes. Getting married or setting up house with your partner will require you to work on a combined budget, and if you are thinking of starting a family you will need to work out how much extra you'll need to raise a child. You'll find a handy calculator at babycenter.com\/baby-cost-calculator to help you with this.\nAn important element of any personal financial plan is life and income protection insurance, particularly if you have a family. If for some reason you are unable to work, income protection insurance will pay you a certain percentage of your income (up to 75 percent) for up to 3 years. There are also various other types of life insurance such as accident and serious illness cover which provide lump sum amounts. An insurance broker will help you to work out the best cover for your needs.\nSo there you have it. Money management tips that will help you turn your personal finance into a lean, mean money machine. END
 TITLE: Change Your Money Mindset and Think Differently About Money CONTENT: Money Mindset 101 — Change the Way You Think About Money\n--------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 8, 2017_\nIf managing money is a mystery to you, clue yourself in to this: Change your money mindset and you’ll likely be surprised at how money starts working for you.\nGive your negative beliefs attention \n-------------------------------------\nThe more you try ignoring a thought, the more persistent it becomes. It’s there for a reason — to get your attention. So give it what it wants and move on.\nThink you don’t have negative beliefs about money? See if any of these ring a bell:\n*   There’s never enough money.\n*   I don’t make enough money.\n*   I’m bad with money.\n*   If only I had more money, then...\n*   I can’t afford...\nIf any or all of the thoughts on this list ring true for you, write them down. Add to the list any others that come to mind. If you’re still having trouble coming up with anything, try remembering any negative beliefs your parents had about money, as communicated to you via their words or actions growing up. What you may discover is that your parents passed their negative beliefs about money on to you.\nCounter your negative beliefs with positive affirmations \n---------------------------------------------------------\nOnce you’ve made your list of negative beliefs about money, it’s time to counter them with positive ones. Granted, they’ll be just thoughts to start, but think them long enough and they’ll eventually grow into beliefs.\nTake another look at the list above of examples of negative beliefs about money.\nThen take a look at the list below, countering each negative belief with the opposite (i.e., positive) thought:\n*   There’s always an abundance of money.\n*   I make more than enough money.\n*   I’m good with money.\n*   I have all the money I need.\n*   I can afford everything I want.\nFinally, for every negative belief you wrote down on your own list, write beside it your counter response. Yes, it might feel like a lie. That’s perfectly normal considering you’ve spent a lifetime believing the opposite is true. Just keep in mind it takes time for the mind to adopt something new.\nExercise your new money mindset \n--------------------------------\nYou’ve done the digging (for negative beliefs) and you’ve planted new seeds (positive affirmations). Now it’s time to nurture the new money mindset that cannot grow on its own.\nEvery 30 days:\n*   Choose one of your positive affirmations to work with.\n*   Write it down and post it somewhere you’ll see it every day, multiple times a day.\n*   Every time you find yourself having a negative thought about money, think or say aloud your positive affirmation instead.\n*   Every time you engage in a financial transaction, from buying gas to taking money out of the ATM, think or say your positive affirmation aloud.\nOnce you’ve cycled through all of the positive affirmations on your list (spending an entire month with each one as you go), start over again from the beginning.\nYou can also strengthen your money mindset via:\n*   **Journaling.**  Every time you have a negative thought about money, write it down. Then ask yourself the following series of questions. What if it’s true? What’s more likely true? How can this truth inform change?\n*   **Vision boards.**  The more clearly you can see your financial goals, the more within reach they will feel. So make your goals as crystal clear as possible via vision boards. On a bulletin board or poster board, collage together whatever images and words support one or more of your financial goals.\nFor more in-depth ideas on changing your money mindset through journaling and vision boards (as well as positive affirmations), see 3 Creative Ways to Mind Your Money. END
 TITLE: Change Your Money Mindset and Think Differently About Money CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Change Your Money Mindset and Think Differently About Money CONTENT:    |  |  |  | \n: . END
 TITLE: How to Recognize the Signs of Too Much Debt CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\nYou know things have been tight financially in your household, but just how bad are things really? Most of us want to believe the lack of cash and the ever increasing mound of debt will only stay with us momentarily — that we will be able to dig ourselves out of this hole. But, if you can agree with most of the following statements, it is time to make some major changes along with a few minor ones in your spending habits.\nSigns You May Be Carrying Too Much Debt\n---------------------------------------\n1.  You have been late paying your bills more than once.\n2.  You never pay the full amount billed to your credit card accounts.\n3.  You are starting to take out cash advances to cover basic living expenses are these loans are becoming more frequent.\n4.  Late fees are beginning to appear on such a regular basis that you are surprised when they aren't listed.\n5.  Bank charges for insufficient funds have begun to eat into your disposable income.\n6.  Making the payments on your installment loans, including your car payment, is becoming difficult.\n7.  Each new expense including appliance repairs, home repairs, dental bills, prescriptions, unexpected doctor visits, or car repairs is a major expense that you cannot afford.\n8.  You've gone through all of your emergency cash reserves, or worse yet, your retirement funds.\n9.  Your spending habits seem compulsive.\nIf you don't have any cash reserves to cover unexpected costs, no matter how minor, weathering a recession or even a simple slowing down of the economy is going to take its toll on your financial situation. It is time to attempt a personal debt reduction by developing a personal debt reduction strategy that includes an increase in savings, a decrease in spending, and a reduction in debt.\nHow to Stop Accumulating More Debt\n----------------------------------\nHopefully you have honestly looked at your financial situation and realized you are drowning in debt. Don't feel bad — you are not alone! Now that you know the problem, time to fix it. Here's some articles that will help you stop the bleeding:\n*   Reduce Your Expenses — Yes, no matter how tight things are, you can do this.\n*   Eliminate Your Debt — This article offers step-by-step ideas to eliminate your debts.\n*   Manage Student Loan Debt — Learn how to manage the seemingly un-manageable student loan debt.\nIt it never too late to begin the process of trying to stop accumulating more debt. It may take a bit of will power, but once you start seeing the rewards of spending less and saving more, you will wonder why you did not start down this road to recovery much sooner. END
 TITLE: How to Recognize the Signs of Too Much Debt CONTENT:    |  |  |  | \n: . END
 TITLE: Disposable Income - Set Up an Automatic Savings or 401K Account CONTENT: How Disposable is Your Income?\n------------------------------\n###### Written by: Kristy Welsh\nwritten by Bonnie Conrad\nI don't know about you but I have never cared much for the term \"disposal income.\" That term seems to imply that there is all this extra money just floating around out there waiting to be put to use. While I'm sure there are some people out there who are awash in cash they have no way to spend, that is certainly not the case for most of us. From my perspective it seems that more and more workers are having to work harder and harder just to stay even. Getting ahead often seems like a distant dream, and it can be difficult just to make ends meet. The idea of disposable income can seem quite remote to most of us.\nEven though the term may be misleading, however, there are some important lessons to be learned from the concept. Even if it seems that every penny is needed and there is simply nothing left to save, in many cases it is possible to eke out some savings from even the most modest income. There are some tried and true techniques that workers can use to maximize their income and their savings. While these techniques may not create mountains of so-called disposable income, they can at least help you find some money to put away for the future.\nWhat to do With Your Tax Refund\n-------------------------------\nMany workers are thrilled at the dawn of every year when they do their taxes and find that they are due a big refund. While the idea of getting a big check from the government is understandably attractive, a big refund simply means that you have been loaning money to the government, interest free, for the past 12 months. While this is certainly a good deal for the U.S. Treasury, it is not such a good deal for you. Even in a low interest rate environment like the one we find ourselves in now it would have been possible to earn some interest on those extra funds.\nOne of the best things workers can do to boost their savings is to adjust their withholding to even things out. This change in withholding will typically result in more take home pay — and a smaller refund the following year. This strategy works best if the \"found money\" in the paycheck is directed to a high yield savings account. If you follow this strategy for the entire year the balance of that account should be larger than any anticipated refund. You will have stopped lending interest free money to the government and started to pay yourself instead.\nMake Your Savings Automatic\n---------------------------\nThe above strategy works so well because it is automatic — the \"extra\" funds recovered through the change in withholding is automatically directed to a savings account. It never reaches your hands, and therefore the temptation to spend it all is reduced. This automatic savings program can be used to direct other funds to savings and investments as well, and many workers have used this technique as the basis of their retirement plan.\nWith more and more employers abandoning the traditional defined benefit pension plan in favor of 401(k) programs, this automatic savings has become easier than ever before. Most workers in large companies already have access to a 401(k) program, and many smaller employers are following suit with programs of their own. A 401(k) program allows those workers to direct a percentage of their income to fund their future retirement, and this has a number of important benefits.\nOne of the most significant benefits is that the money placed in a 401(k) program is not subject to current taxes. This allows the worker to keep more of his or her money by reducing his or her tax liability. Participating in a 401(k) program also helps to make retirement savings automatic. The money is invested week after week, year after year, with no further action required on the part of the employee. As the savings grow over time, workers can see the benefits of compound interest and investment returns.\nAutomatic savings plans like 401(k) programs can also give workers the fiscal discipline they will need to grow their savings over time. Many people find it difficult to get started on a savings program, especially since that so-called \"disposable income\" can be so hard to find. The beauty of a forced savings program is that the money is removed from the worker's paycheck just like taxes and other deductions. This can allow the individual consumer to learn to live on less than they make — a key foundation for financial success. END
 TITLE: Stop Living Paycheck to Paycheck CONTENT: Stop Living Paycheck to Paycheck in Ten Steps\n---------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\nMany of us live paycheck to paycheck without saving any money in between pay periods. It turns into such a common experience that living paycheck to paycheck feels like the norm. If you're sick and tired of the struggle — week after week, month after month, year after year — it's time to find a new normal. Here are ten steps to help you save money, budget your money, and change the way you think about money so you can stop the cycle of living paycheck to paycheck and start saving money.\n### 1\\. Change your mindset\nWhen you're living paycheck to paycheck, it doesn't feel like you have much choice. And while that may be true today, if you change the way you think about your money, it doesn't have to stay that way.\nYou are in charge of the money you make and how you choose to spend it. The longer you've been struggling to make ends meet, the more difficult it will be to accept this truth. But like it or not, there is no way around it. The only way to stop living paycheck to paycheck is to believe you have the power to change it.\n### 2\\. Get others on board\nAll too often, living beyond your means is perpetuated by relationships. You may be ready tighten your belt, but it's tough to say no to family and friends who don't know just how important it is for you to change the way you manage your money. Call a family meeting and have the agenda be all about financial goals and how to get there.\nAs for friends, be upfront and tell them you need to spend less and save more. What you'll likely find is that they would love to do the same, and together you can plan more affordable fun accordingly.\n### 3\\. Visualize your financial goals\nYou probably have a pretty good idea of what you'd like to accomplish with your money, but a concrete visual will get you there faster. Start with a list then, if you're so inspired, turn it into a vision board which is a fun, creative exercise for the whole family.\nThere's no one right way to make a vision board, but you can start with a stack of magazines relative to your financial goals from real estate, to travel, to investing. Clip pictures, words, and phrases, then collage them onto a piece of poster board. Feel free to incorporate drawings, paint, and odds and ends that help flesh out your goals. \n### 4\\. Track your spending for 30 days\nWe all think we know where our money goes. Then we track it, and we see our money going places we never would have imagined.\nDesignate a small notebook to record every penny you spend. Keep it in your purse or pocket so you can write down every transaction as it happens so that you don't forget. Of course, you will forget now and then, so save every receipt too.\nAt the end of the 30-days, check your receipts against your spending log to be sure they match up. Also, take the time to check your log against your debit and credit card accounts. In this manner, not much is going to slip through the cracks.\n### 5\\. Create or modify your budget\nSubtract what you're spending from your income, then cut where you can.\nEntertainment is an easy place to start. For instance, it's a pretty safe bet that we can all stand to sacrifice cable television and Netflix. Your local library likely has an impressive collection of DVDs you can rent for free instead.\nWhere you can really make a dent, though, is in a couple of places you will resist at nearly all cost — housing and transportation. Look at moving to a smaller place or getting yourself into a cheaper car.\nOf course, look at other areas as well; just be practical. The food budget may be ripe for cutting if you eat out a lot, but it could be tougher if you already make all your meals at home.\nWhatever you do, do not skip this step. It's the only to way to ensure success of the rest.\n### 6\\. Start saving money\nBe sure to include in your budget money to go toward savings. If it seems ludicrous to think you could set aside anything when you're living paycheck to paycheck, you can always set aside something. As little as $5 to $25 a month will add up, and is a great way to get you into the savings habit.\n### 7\\. Stop making late payments\nIf you pay your rent, utilities, car and other bills past the due date, you're just throwing money away on late fees. Of course, it's tough when you're living paycheck to paycheck. But once you cut your expenses, you should have less trouble paying your bills on time, if not early.\n### 8\\. Pay down your credit cards\nWhen you're living paycheck to paycheck, credit cards can feel like your best friend. This is a fallacy, and a dangerous one. Unless it is an absolute necessity, like keeping the electricity on, do not charge another thing to your credit cards.\nIf you're already carrying a balance on one or more cards, and only making the minimum payment, you're wasting money on interest fees every month. Start sending in more than the minimum, even if it's just an extra $5 to start.\n### 9\\. Increase your income\nThis one comes late in the list only to avoid scaring you off from this process. While there is nothing scary about earning more money, advice like \"increase your income\" can sound a little ridiculous because it never seems that easy. Only...it is. There is always a way for you to make more money than you do.\nMaybe it's time to ask for that raise you know you deserve. Or to get another job working nights or weekends. Or to start doing odd jobs when and where you can find them — TaskRabbit is a great place to start.\n### 10\\. Keep yourself inspired\nSteps one through nine won't be easy, and they won't be quick. You'll feel discouraged and you'll want to quit. So it is imperative you do all you can to stay inspired.\nLook at your vision board and read your list of goals every single day. Call monthly family meetings to track your progress. Confide in friends for support. Read inspiring books and blogs. Post inspiring quotes on the bathroom mirror, the refrigerator, and your desk. More than anything, be grateful for what you already have. END
 TITLE: Sales Tactics and Sneaky Tricks Used by Retailers CONTENT: Sneaky Sales Tactics Used by Retailers to Spend Your Money\n----------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 8, 2017_\nIn our budgeting section of articles, you will find information on retirement, managing your personal finances, how to save money, and where to put your saved money. But when you think of budgeting, you probably think about spreadsheets where you have to keep track of all your spending only to find out you are spending your money in the wrong places. No one likes to be on a budget, and no one likes to have to curtail their spending habits. But one major way to keep your budget in line is to watch your spending, which can be hard with all the land mines laid before you as soon as you walk into a store. Every time you walk into the mall, grocery store, or big-box retailer, remember it's you against them — them being the marketers, CEOs, and sales professionals who are bound and determined to help you spend your money. We have uncovered some sneaky tricks they may use on you as soon as you step into their stores.\nFree Shipping Offers\n--------------------\nShopping online is booming and who doesn't love shopping from their home computer while wearing p.j.'s and drinking coffee? Online shopping is so convenient, but paying for shipping can be expensive and a real downer. Web retailers know many of us have an aversion to paying shipping costs, so they often offer free-shipping deals. But these may come with a catch — spend so much or buy so many items in order to get free shipping.\nBefore you fall into the free shipping trap, think about how much you are going to pay for that item (the one you really don't need) so you can meet the requirement. When in actuality, you could have just paid the $5 for shipping instead of the $35 for that useless item. \nMultiple Item Discounts\n-----------------------\nThis sales tactic is rampant in grocery stores. How often have you gone into your local grocery store to see all kinds of signs offering \"10 for $10\" or mix-and-match 10 items for a set price? Who doesn't need 10 bottles of ketchup — really? We are not saying all of these multiple discount offers are bad, it is just why spend $10 on 10 items (when you really only needed one) and you could be saving yourself money. Unless you really need multiples of something, it is best just to buy the number you really need and save the money for something else in the store.\nBOGO Deals\n----------\nNo, we are not talking about a dice game (that's Bunko). We are talking about the Buy-One-Get-One free sales. BOGOs work similarly to multiple purchase pricing because retailers are trying to get you to buy more than you normally would. Now, if you are already planning to make a purchase and a second one is free, then score for you. But, if you find yourself justifying the purchase of un-needed new shoes because of a BOGO ad, then score one for the retailer. Before you make that BOGO purchase, think long and hard if you really need to make the purchase in the first place. Don't just emotionally buy something because you are getting something for free.\nCoupon Savings\n--------------\nWe love using coupons and we devoted an entire article about how to use coupons to save money. That said, coupons have a sneaky way of making you buy items you would never purchase at full prices, or even sale price. Word of warning; coupons make it feel like you are getting a deal even if you aren't. Double check and make sure the after coupon price is in fact a bargain.\nRewards Programs and Loyalty Cards\n----------------------------------\nOpen your wallet and we bet you have at least two reward or loyalty cards in there. Many grocery stores offer loyalty cards which afford you money off gas for your car — or you have a card to Sam's Club or CostCo — or maybe you have a rewards card from Sears or Kohl's. All of these are how a retailer gets you to keep coming back to their store when you have other options. Having these cards makes you stop \"comparison shopping\" and just head off to the store where you have the loyalty card from. Word to the wise — make sure you are getting the best deals at your \"loyalty\" store and make sure it is worth your while to continue to shop there. If not, find a different store where you could be saving money instead of just racking up loyalty points.\nPsychological Pricing\n---------------------\nYou would think by now we would be savvy enough not to be tricked by seeing the number 9 at the end of a price. And yet, we continue to think that something priced $19.99 is a better deal than an item prices at $20. Who knew we could be so manipulated by a price tag? Known as \"charm pricing,\" ending sales tags with a \"9\" is one way businesses use psychological pricing to their advantage. They may also trick you into spending more by dropping the dollar sign, using small font, bundling items together, or reducing the left digit by one (1.99 instead of 2.00). Not surprisingly, if you Google this topic, there are countless articles on the psychology of pricing and the many ways to price items to affect a customer's buying urge. Our advice is to try to not let your emotions get in the way of a purchase because an emotional purchase equates to spending more money.\nPoint-of-Sale Add-Ons \n----------------------\nGrocery and big box stores are great at this sneaky tactic, just take notice of all the display items on either side of you as you are checking out at the sales register. Gum, candy, batteries, little flash lights, are all things we really did not go into the store to buy, but man they look pretty good as you are standing in line waiting to check out. Who hasn't snuck in that snickers candy bar or pack of gum into your grocery cart as you wait to unload all of your groceries on to the conveyor belt.\nBesides the stores who shamelessly put all of these goodies right in your face, what about the sales clerk who promotes the monthly deal just before she hits the \"total\" button on her register. One store\/restaurant that is so good at this is Cracker Barrel. You are paying for your meal when the cashier hits you with all kinds of \"specials\" they are having on candy, jams or jellies.  Don't be tempted to make this type of emotional purchase. Do you really need 10 candy bars or a jar of homemade jelly?\nIf you noticed a common thread here, it is to not make purchases based on emotion. Marketers are betting they can trick you into making an emotional purchase luring you into buying too much or buying something you really don't need. All of these tactics mean one thing for you — you will spend too much money. Budgeting means cutting back spending and not spending money on items and things you don't really need. If you have to stop and think about whether or not to buy something, chances are you should not buy it. Keeping your emotions in check while shopping will save you a lot of money in the end. END
 TITLE: Sales Tactics and Sneaky Tricks Used by Retailers CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Sharing Economy - Collaborative Consumption CONTENT: Sharing Economy 101 — The Basics on Sharing\n-------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 18, 2017_\nHave you ever bought or sold something on Craigslist? Booked a place to stay through Airbnb? Donated to a Kickstarter campaign? Then you are part of the _sharing economy_, a cultural phenomenon that is changing the way we go about our daily lives, both personally and professionally.\nThe sharing economy, also known as _collaborative consumption_, is a socio-economic system in which people make money, save money, and promote sustainability by doing business with their peers.\n**Reasons the Sharing Economy is Becoming Popular**\n---------------------------------------------------\nThe concept of sharing with our peers is not a new one. But in recent years a trio of factors have converged to create the perfect climate for a sharing economy explosion:\n1.  _**The Internet** —_ We can connect with anyone, anywhere, so we are no longer challenged to find other people who have what we want (or vice versa), and no longer limited to sharing with those in our local communities.\n2.  _**The Recession** —_ The sharing economy has proven a lifesaver for those struggling to make ends meet post-recession, as the job market has been slow to recover.\n3.  _**Anti-Consumerism** —_ As we grow more sensitive to the wastefulness of our consumer economy, sharing with one another what already exists is increasingly attractive.\n**What is \"Shared\" in the Sharing Economy?**\n--------------------------------------------\nThe sky is the limit when it comes to what can be bought, sold, rented, borrowed, traded, or otherwise acquired in the sharing economy:\n1.  Goods, both new and used, through sites like:\n*   eBaby\n*   Craigslist\n*   Etsy\n*   Yerdle\n*   Quirky\n*   Threadflip\n*   Poshmark\n*   Rent the Runway\n*   CarDaddy\n3.  Services, both personal and professional, through sites like:\n*   TaskRabbit\n*   Fiverr\n*   Elance\n*   Freelancer.com\n5.  Space, for lodging, business, and storage, through sites like:\n*   Airbnb\n*   Couchsurfing\n*   Peerspace\n*   ShareDesk\n*   Cubbyhole\n7.  Transportation, both local and long-distance, through sites like:\n*   Uber\n*   Lyft\n*   Sherpashare\n*   Getaround\n*   Scoot\n9.  Food, through sites like:\n*   KitchenSurfing\n*   Shareyourmeal\n*   LeftoverSwap\n*   EatWith\n*   Feastly\n11.  Money, both loaned and fundraised, through sites like:\n*   Kickstarter\n*   Indiegogo\n*   Kiva\n*   Lending Club\n*   Prosper\nAnd that’s just a sampling. There are thousands of sharing economy websites that help match people who want something with those who have it to offer.\n**Can You Make a Living Off the Sharing Economy?**\n--------------------------------------------------\nThat depends on what kind of living you need to make relative to your quality of life.\nWhile the money-making opportunities in the sharing economy are pretty much infinite, your resources are not. The more specialized your skill or valuable your product, the more money you can expect to earn in less time. But unless you work every waking hour, you could be hard-pressed living off earnings from TaskRabbit jobs, for example, or Craigslist sales.\nThat’s not to say it cannot be done, but it’s probably wise to treat sharing economy opportunities as _supplemental_ income, at least in the beginning.\n**Where to Start Sharing**\n--------------------------\nVisit any one of the reputable sharing economy websites listed in this article or browse the directories at CollaborativeConsumption.com and CompareandShare.com. END
 TITLE: Sharing Economy - Collaborative Consumption CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
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 TITLE: Financial Awareness Year Long Campaign CONTENT: Financial Awareness Calendar: 12 Campaigns for Families and Educators\n---------------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 8, 2017_\nIt’s not easy keeping ourselves or our kids motivated to get smarter about money. Financial awareness campaigns are a great way to learn, and stay inspired, all year long. Mark your calendar for these important dates when thousands of organizations rally to raise awareness, share resources, and host activities and events nationwide.\n**January**\n-----------\n### **EITC Awareness Day — January 26, 2018**\nSo many Americans miss out on the Earned Income Tax Credit (EITC) that the IRS has a day dedicated to raising awareness. If you made $53,267 or less last year, _you_ might qualify. Use the EITC Assistant interactive tool to find out.\n**February**\n------------\n### **America Saves Week — February 26 - March 3, 2018**\nSixty-two percent of Americans have less than $1,000 in savings. Needless to say, we need at _least_ a week devoted to raising awareness about this shortcoming. Since 2007, America Saves Week has been doing just that — a campaign involving more than 1,000 non-profit, government, and corporate organizations encouraging consumers to save up! Learn more at AmericaSavesWeek.org.\n**March**\n---------\n### **National Consumer Protection Week — During the first full week of March 2018**\nDo you know how to protect yourself from identity thieves? Do you know what to do if you suspect you have been a victim of fraud? Do you know what debt collectors can and can’t do when trying to collect a debt from you? Do you know how to dispute errors on your credit reports?\nEveryone needs these consumer rights basics under their belts, thus the organization of National Consumer Protection Week. Thousands of organizations participate, including AARP, BBB, FTC, the Consumer Financial Protection Bureau, and the National Cyber Security Alliance. Learn more at NCPW.gov.\n### **World Consumer Rights Day — March 15 Every Year**\nOn March 15, 1962, John F. Kennedy outlined his vision of consumer rights in an address to Congress:\n“Consumers by definition, include us all. They are the largest economic group, affecting and affected by almost every public and private economic decision. Yet they are the only important group…whose views are often not heard.”\nSince 1983, consumer organizations worldwide have observed March 15 as World Consumer Rights Day, working to further the development of eight basic consumer rights that grew from President Kennedy’s vision - 1) the right to satisfaction of basic needs, 2) the right to safety, 3) the right to be informed, 4) the right to choose, 5) the right to be heard, 6) the right to redress, 7) the right to consumer education, and 8) the right to a healthy environment. Learn more at ConsumersInternational.org.\n### **Global Money Week — March 12-18, 2018**\nAccording to an OECD proficiency test of 15-year-olds in 18 countries, U.S. students rank 9th in financial literacy. Global Money Week presents U.S. educators and parents with an opportunity to join the international community in the financial education of our kids.\n**April**\n---------\n### **Financial Literacy Month**\nDo you have a budget that works? Do you know how to improve your credit score? Do you know how much you need to save for retirement? Do you know the smartest investments to get you there? Wherever there’s a hole in your financial education, April is the time to fill it -- Financial Literacy Month, designated as such by the Senate Resolution 316 in 2004. Learn more at FinancialLiteracyMonth.com.\n### **Money Smart Week — April 21-28, 2018**\nIn 2002, the Federal Reserve Bank of Chicago created Money Smart Week — a campaign aimed at helping consumers learn how to better manage their finances. You’ll find all sorts of great resources at MoneySmartWeek.org, including an interactive map that lets you check for events by state.\n### **Teach Children to Save Day — April 20, 2018**\nIf we want our kids to be better savers than us, we need to start teaching them early. You don’t save what’s left over. You save first, then spend the rest. Teach Children to Save Day — sponsored by the American Bankers Association (ABA) — is aimed at spreading messages like these to our kids. Try one or more of these four fun saving ideas.\n**May**\n-------\n### **National 529 College Savings Day — May 29 Every Year**\nStudent loans should be a last resort, not a given. And one of the best ways of staving them off is through a 529 college savings plan, thus the day dedicated to its benefits. For instance, while you do have to pay income tax on contributions, all earnings are tax-free. Learn more about 529 college savings plans.\n**October**\n-----------\n### **Get Smart About Credit Day — October 19, 2017 & October 18, 2018**\nLearning about credit shouldn’t start when we get our first credit cards. That’s a sure way to mismanage them. Unfortunately, we tend to underestimate our kids and how soon the concept of credit can and should be understood. On Get Smart About Credit Day — sponsored by the American Bankers Association — volunteer bankers visit local classrooms to help get them credit-educated early.\n### **National Save for Retirement Week — 3rd Week of October Every Year**\nOne in four workers don’t make the most of their 401(k) match. It’s oversights like this that inspire National Save for Retirement Week, established in 2006 to encourage Americans to participate as fully as possible in their employer-sponsored retirement plans. Are you making the most of _your_ 401k?\n**November**\n------------\n### **National Scholarship Month**\nMany students and their families wait too long to start looking for scholarship money. Or they don’t look in the right places. Or, worse, they don’t look at all because they assume you need straight A’s to qualify. National Scholarship Month is aimed at getting the facts straight. END
 TITLE: Learn How to Discuss Money with your Romantic Partner CONTENT: Romantic Ways to Talk About Money with Your Partner\n---------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\n_Romantic: \"Conducive to or characterized by the expression of love.\"_\nIf there is any conversation with your partner that could benefit from a greater expression of love, it’s the money talk.  No matter how close you are with your partner, talking about money doesn’t come easy to most of us. The good news is, it’s not the money talk that is to blame. It’s the approach.\nFear fuels anger. Anger fuels blame. Blame fuels defensiveness. The key? Instead of starting from fear, try starting from love.\n### **1\\. Talk to your partner about the money talk.**\nThe time to talk about money is not when a concern or problem comes up. That’s not to say you should ignore concerns or problems, only that (unless they’re urgent) they are best left discussed at a scheduled time and place when you are both prepared for the conversation, mentally and emotionally.\n### **2\\. Share with your partner how you believe talking about money can improve your relationship.**\nWhen you talk about money with your partner on a regular basis, you will:\n*   Grow closer\n*   Reduce conflict\n*   Achieve financial goals faster\nAny others you’d add to the list?\n### **3\\. Suggest that the money talk be ongoing.**\nAs with every other aspect of your relationship, your financial intimacy needs nurturing too. Checking in with one another on a regular basis will not only help you stay on track with financial goals, but also adjust them in light of new information, challenges, or feelings. \n### **4\\. Schedule regular times to talk.**\nHow often you talk is up to you, just keep it consistent and easy to remember:\n*   Every Saturday morning?\n*   Every other Sunday?\n*   The first of every month?\nAs for time of day, choose carefully. Early is best unless it’s a day when neither of you have a lot going on and an evening money conversation, for example, won’t be colored by a long, stressful workday.\nFinally, be sure and set a length of time to talk. You can adjust this going forward depending on what feels right to you, but try starting with a 2-hour time block.\n### **5\\. Talk in a positive, comfortable environment.**\nWhere do you and your partner seem to have the best conversations at home? The kitchen table? The patio? The living room floor? Wherever it is, that’s where you should have your money talk. Set out some of your favorite refreshments, and you’re good to go.\n### **6\\. Make separate lists of what you want to discuss.**\nThis means taking some time beforehand, _individually_, to get clear on what issues matter to you most. This should probably include:\n*   Financial goals, both short- and long-term.\n*   Coming clean about your own money mistakes.\n*   Concerns about your partner’s money behavior.\n### **7\\. Bring relevant numbers and documents.**\nThe more you can bring the better, especially if it’s information you’ve never shared with your partner before, like:\n*   Account balances\n*   Credit reports\n*   Credit scores\n### **8\\. Take turns talking.**\nGo back-and-forth, each of you talking about one item on your list at a time. Note, it is probably best to lead with items relative to your own money mistakes before addressing any concerns you may have with theirs.\n### **9\\. Practice reflective, non-judgmental listening.**\nAfter listening to your partner share an item on their list, reflect back to them what you heard, as in “What I’m hearing you say is….” It’s then your partner’s turn to clarify things as they deem necessary.\n### **10\\. Recap what (if anything) each of you plans to do before the _next_ talk.**\nDid you agree to spend less on food this week? Pay off a credit card bill this month? Cancel cable? Open a savings account? Send a dispute letter to a credit bureau?\nWhatever the tasks you’ve agreed to, recap them all, sure to state who’s doing what, and when.\n### **11\\. Do something romantic afterward.**\nIn keeping with the theme, make it something frugal. Take a walk. Go to lunch. Catch a matinee.\n### **12\\. For your next talk, keep a running list of ideas, observations, concerns, and tasks completed.**\nWhether it’s on your computer, smartphone, or good-old-fashioned notebook paper, keep a record of what you’re thinking and feeling, money-wise, going forward. While you may not share all of this with your partner, it can prove an invaluable resource for getting to the heart of what you really need to be talking about. END
 TITLE: Tips on When to Start Talking to a Financial Advisor CONTENT: Times When You Need to Talk to a Financial Advisor\n--------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\nHere is an article on how to find a good financial planner, which is all well and good, but when should you start talking with a financial advisor? That is the million dollar question — quite literally. Of course, the first step is to find a reputable financial consultant and once you do, it is time to start talking to them about saving and investing your money. This article addresses the times when you need to talk to a financial advisor. While you don't always need to work with a financial planner on an ongoing basis, there are times when it makes sense to pop in for a consultation and\/or a financial check-up.\nWhen You Get Your First Job\n---------------------------\nAfter you get your first job is a good time to make your first visit to a financial advisor. It doesn't matter if you are making $20,000 or $200,000 a year, this is a point in your life when you need to start saving for retirement. Retirement you say? Yes, retirement! Wouldn't you like to be able to retire early and not have to worry about money when you do retire. Then, the only way to accomplish this goal is to start saving for it right from the beginning. Now, you might not agree with this initial advise and you can always change your goals years down the road to meet your changing needs.\nWhen You Get Married\n--------------------\nThis seems like a natural progression in life — you get a job then you get married. Let's say you saw a financial advisor when you got your job but now you need to see him or her again and this time, you will need to bring along your new spouse. If your spouse has never been to a financial planner, it is great time to get them on the bandwagon with you. If they have been to a financial planner prior to getting married, then this is a perfect time to bring both of your \"plans\" together. Your advisor will be able to make sure you both are on the right path and they can help combine your assets, if needed. With the two of you now planning ahead for retirement, and possibly children, your planner can make sure you are putting aside enough income and in the right places to maximize your returns.\nWhen You Receive a Large Sum of Money\n-------------------------------------\nReceiving a large amount of money, such as an inheritance, lottery winning, lawsuit award, bonus, buyout or a big raise, can create a surge in your financial health. Unfortunately, most people tend to squander this new found wealth instead of putting it to good use. A recent study showed that most people only save **half** of an inheritance they receive and one-third of those interviewed saw their **overall wealth remain the same or decline**! Now that is some poor financial decision making. Furthermore, the majority of people polled thought they needed at least $1 million in order to work with a financial advisor — which could not be further from the truth. No matter how much money you receive, you should always talk to a financial expert before you blow it all on bad investments or frivolous purchases.\nWhen You are Preparing to Pass on Your Wealth\n---------------------------------------------\nWe all can't live forever and at some point you are going to have to part with your money. If you have been vigilant at saving and investing, chances are you have socked away a nice nest egg and a pretty large portfolio of wealth. When you die, you do not want all of this going to the state via probate court. This is when you need to start thinking about estate planning and talking to a professional about how to set up your beneficiaries and your living will. Hiring a professional to set up your estate will help navigate through complex laws and investments strategies that apply to high income people. Once you have over $500,000 in assets (which isn't really that hard to do if you own a home and a couple cars), you need to make sure your wealth is protected and set up so your children and\/or grandchildren can enjoy what you worked so hard building up.\nAs we mentioned before, the first step to investing in your future is to find a reputable and competent financial planner. The next steps, as listed above, need to be followed so your money can work for you and increase as you get older. Start planning now for college educations, retirement, and passing your wealth to your family once you are gone. END
 TITLE: Tips on When to Start Talking to a Financial Advisor CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Tips on When to Start Talking to a Financial Advisor CONTENT:    |  |  |  | \n: . END
 TITLE: Using a Financial Planner to Invest Your Money Wisely CONTENT: Hire a Competent Financial Planner to Help Invest Your Money\n------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 8, 2017_\nFinancial planners are practicing professionals who help people deal with personal financial issues through proper planning and management of cash flow, saving for higher education, investing money, tax planning, estate planning, and business planning. Now that you've started to save money, you will need a professional to help you make the most of this money.\nWe all know how important it is to save for our financial futures, staying out of debt and credit history, but few of us have the time, knowledge, and resources it takes to invest our money wisely. Since we already hire professionals to do our gardening, shopping and other chores, it only seems natural to turn to a professional for financial planning advice. While hiring a financial advisor can certainly make sense, it is important to understand what a financial advisor is, and more importantly, how he or she is compensated. After all, you worked hard to get your savings plan going, you want to make every penny count!\nWhen looking for a financial planner, you want to make sure this person is a certified financial planner which means this person has taken high-level training programs to stay current in the marketplace. There are three basic types of financial planners in the marketplace — commission based, fee based, and fee only. The differences between the three flavors of financial planners are vast, and it is vital for any would be investor to understand how the choice they make can impact their financial future and that of their families.\nCommission Based Financial Planners\n-----------------------------------\nA commission based financial planner is compensated based on the investments he or she sells, typically earning a commission on each product he or she sells. This is similar to a mortgage broker. While it is certainly possible for a commission based financial planner to be knowledgeable and honest, it is important for clients to understand the potential conflicts of interest that can arise.\nClients of commission based financial planners must make doubly sure that each recommended investment truly meets their own needs. It is important to consider factors such as age, financial experience and years before retirement when making an investment choice, and it is vital that any commission based financial planner respect these needs and cater to them.\nFee Based Financial Planners\n----------------------------\nA fee based financial planner is basically a combination of a traditional commission based financial planner and a fee only financial advisor. Even though these financial planners may charge an hourly or set fee for their services, they are also compensated through commissions on the investments they sell. It is important for every investor to understand the difference between a fee based advisor and a fee only advisor and act accordingly.\nAs with a commission based financial advisor, it is important for clients of fee based financial advisors to be sure that the advice given is sound and directed toward their own needs. Those who are in search of truly independent and impartial advice may want to consider a fee only financial advisor instead.\nFee Only Financial Planners\n---------------------------\nThe third type of financial advisor is known as the fee only advisor, and the compensation structure of these advisors is designed to ensure impartiality, honesty and independence. Unlike fee based and commission based financial advisors, a fee only advisor is compensated only through the fees he or she charges clients.\nClients pay for the services of a fee based financial advisor in a number of ways, including hourly fees, yearly charges and fees for money management. Fee only advisors derive none of their income from commissions on the products chosen by their customers, eliminating the conflicts of interest that can arise with the other two types of financial professionals.\nHow to Find a Financial Planner\n-------------------------------\nThe Financial Planning Association website is a good place to start. This website lets you search for planners by location or specialty. Seek out financial planners who have a CFP (Certified Financial Planner) credential from the Certified Financial Planner Board of Standards.\n**Word of Caution.** The Financial Planning Association does not verify credentials; it just lists planners. You'll next have to verify a planner's CFP status and background with the CFP Board of Standards.\nYou can also find a good financial planner by looking for a good certified accountant. CPAs are licensed, and should know the ins and outs of tax savings, a crucial part of your financial planning strategy. In addition, some CPAs have earned Personal Financial Specialist certification from the American Institute of CPAs.\nCheck out registries with professional associations like the National Association of Personal Financial Advisors or Garrett Planning Network to locate advisers in your area that have gotten training and agreed to the organizations' ethical standards. END
 TITLE: Generation Y Kids Need Good Financial Advice CONTENT: Gen-Y Guide to Finding Financial Advice You Can Trust\n-----------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 8, 2017_\nAccording to a Fidelity Investments survey, nearly a quarter of Millennials trust no one for financial advice. As though that’s not disheartening enough, 39 percent of them worry at least once a week about their financial future. And with good reason. The average age of Generation Y is 30 years old, a pivotal time for setting in motion a financial plan for the future.\nUnfortunately, without anyone to rely on for advice, many Millennials are uncertain about how best to budget, save, and invest toward their financial goals. If you have yet to find financial advice you can trust, try this.\n**Ask Your Parents For Financial Advice**\n-----------------------------------------\nOne-third of Millennials say they trust their parents more than anyone else for financial advice. It’s not so much their expertise that Gen Y counts on (though that may certainly be the case), but their parents’ agenda: looking out for the best interests of their children.\nMillennials tend to turn to their parents on the subject of finances because they know they have their best interests at heart. This combined with a lifetime of trial-and-error makes Gen Y parents a great go-to for advice on basic financial decisions, from managing credit cards to buying a home.\n**Read Books on Financial Advice**\n----------------------------------\nYou don’t need an expensive or lengthy financial education to learn all you need to know about managing your money. The world’s foremost experts turned authors have got you covered. Once you start reading, you’ll find your own unique path to learning, but this list is a good place to start:\n_Rich Dad, Poor Dad_ by Robert Kiyosaki\n_The Wall Street Journal Guide to Starting Your Financial Life_ by Karen Blumenthal\n_Get a Financial Life: Personal Finance in Your Twenties and Thirties_ by Beth Kobliner\n_The Money Book for the Young, Fabulous & Broke_ by Suze Orman\n_The Only Investment Guide You’ll Ever Need_ by Andrew Tobias\n_Your Money or Your Life_ by Vicki Robin\n_The Millionaire Next Door_ by Thomas Stanley and William Danko\n_A Random Walk Down Wall Street_ by Burton Malkiel\n_Buffett: The Making of an American Capitalist_ by Roger Lowenstein\n_The Essays of Warren Buffet_ by Warren Buffet\n_The Four Pillars of Investing_ by Dr. William Bernstein\n_The Bogleheads’ Guide to Investing_ by Larimore, Lindauer, & LeBoeuf\n_The Richest Man in Babylon_ by George Clason\n**Consult With a Financial Planner**\n------------------------------------\nIf and when you want to take things to the next level, you may consider consulting with a financial planner. Should you do so, be sure to do your homework first.\nWhen choosing a financial planner, be mindful of the following:\n*   What is their background, education, and employment history?\n*   Are they certified (as you only want to do business with a Certified Financial Planner)?\n*   Do they take the classes necessary to fulfill the continuing education requirement?\n*   Do they charge a flat rate (preferable to a commission-based fee)?\n*   Do they have impressive referrals?\n**Trust Yourself**\n------------------\nNo matter what anyone else advises, only you know what is right for your financial future.\nYes, you need to find people you can trust, be it your parents, expert authors, or a financial planner. But after gathering all the information you can on the subject, defer to yourself first and foremost when it comes time to make any financial decision. END
 TITLE: Valentines Day on a Budget CONTENT: Making Valentines Day Affordable - How to Say I Love You on a Budget\n--------------------------------------------------------------------\n###### Written by: Kristy Welsh\nCelebrate Valentine's Day On a Budget\n-------------------------------------\n_Last Updated: April 18, 2016_\nAccording to a recent survey, Valentine's Day is the second most expensive holiday of the year — Christmas being number one. It is the holiday where you are suppose to say \"I Love You\" to your significant other, which to some means spending a lot of money on a gift. This does not have to be the case for the cash strapped individual trying to get out of debt. Don't let Valentine's Day be another expense that keeps you from getting ahead in your personal finances.\nWhen is comes to Valentine's Day spending, Americans spent over $18 billion in 2017 on candy, flowers, jewelry, cards, and dining out. The average person spent $136.57, which was down 96 cents from 2016. The biggest expense was candy, 49.7 percent, followed by greeting cards at 46.9 percent.\nTips for Valentines Gifts on a Budget\n-------------------------------------\nIf you are on a tight budget, looking to get out of debt, or just plain fed up with the commercialization involved with Valentine's Day, here are a few gift ideas that say \"I Love You\" without putting you further in debt. They may even improve your love life!\n1.  Write a poem or intimate message to your sweetheart and include it in the card you give him or her. You would be amazed at the reaction you get when the words you present are your own. Of course this will require you to sit down for a while, dedicate some time, any really put you thoughts to paper.\n2.  Put together a box of personal favorites, such as a favorite candy bar, magazine, or some other little item that will show them you are attuned to their smallest desires.\n3.  Give them a back rub. This intimate gift will do wonders for your relationship!\n4.  How about writing and including a song with your greeting? Again, because the words and the sentiment are your won, they are guaranteed to get a positive response.\n5.  Cook them their favorite meal at home. This is more intimate and far less expensive than going to a crowded, overpriced restaurant.\nIf you really feel the need to spend money and buy something, here are a few ideas for inexpensive alternatives to the normal Valentine's Day gift giving:\n1.  Give your significant other a plant instead of a dozen roses that will die in a couple of weeks. Plants can be purchased inexpensively and dressed up real nice with ribbons, bows, and balloons. A simple or homemade card with your personal feelings can top the whole thing off.\n2.  How about giving a small teddy bear with some candy attached? This is sentimental gift that is sure to please.\n3.  A cake from the local bakery is a great idea, very inexpensive, and a great gift if your sweetheart has a sweet tooth.\n4.  How about giving a break from cooking? Bring home dinner home instead of having to cook, and don't forget the inexpensive wine; many wines now rate highly at a lower price.\nValentine's Day does not have to cost a fortune. It actually has more meaning when gifts are from the heart. These inexpensive and free gifts are especially great if both you and your sweetheart are on the same page financially.\nSo take a step to turn around what would otherwise be another expensive holiday, and you just might find an emotional boost that strengthens your relationship! END
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 TITLE: Information on Target Date Retirement Funds CONTENT: Target Date Retirement Funds: Pros and Cons\n-------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 18, 2017_\nThe target date mutual fund is a new investment tool that has emerged within the last decade, designed to help investors make sense of the jumble of funds offered by their retirement plans. These new choices are known as target date funds (TDF), and chances are your 401(k) or 403(b) plan contains at least one of these unique investment vehicles. Target date funds are typically named for the year you plan to retire, i.e., Target Date 2020, Target Date 2030 and so on.\nSet It and Forget It\n--------------------\nThe idea is that these funds will change their mix of stocks and bonds as time goes on, helping younger investors capture more of the stock market's historically high returns while shielding older workers from a potentially catastrophic bear market. The actual track record of these funds has been somewhat of a hit or miss affair, so it is important for workers to research the funds they are offered thoroughly before investing.\nGood Choice for Hands Off Investors\n-----------------------------------\nSome workers love nothing more than tracking their investments on a daily basis, while others would rather have a root canal than read the financial section of the newspaper. If you fall into the latter category, it may make sense to invest at least some of your retirement money in a target date fund. The managers of these funds make all the investment decisions for you, from the proper mix of stocks and bonds for your age to which stocks and bonds to buy.\nProblems with the One-Size Fits All Approach\n--------------------------------------------\nOne of the potential downsides of these target date retirement funds is that they by necessity take a one-size fits all approach to investing. In order to do their job the fund managers who oversee these mutual funds need to assume that every 40 year old has the same needs, and that every 60 year old pre-retiree will need the same type of portfolio. The problem is that the reality is rarely that simple - every investor will have different needs and a different tolerance for risk. Investors who dislike the cookie cutter approach to planning for retirement may be more comfortable investing on their own.\nIn addition, some target date retirement funds charge fees that are higher than the industry average, so it is important for workers to read the fund prospectus carefully before making a commitment. High fees can easily eat into investment returns, especially over the 20 or 30 years that these funds may be invested. Target date retirement funds can be a good choice for some investors, but it is still important for every investor to due plenty of homework.\nYour 401(k) May Already Include These Funds\n-------------------------------------------\nAssets held in target-date funds, also called life-cycle or age-based funds, crossed the $500 billion threshold in 2013, according to fund tracker Morningstar. Demand for such products, especially among 401(k) plan participants, shows no signs of slowing, according to financial experts.\nWhich Funds Should I Choose?\n----------------------------\nFor more information, you can talk to your investment plan advisor to see what programs your investment plan offers and see if these funds are a good option for you. END
 TITLE: Using Self-Directed IRAs for Retirement Investing CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\nRecently, there has been skyrocketing growth in the number of self-directed retirement accounts opened by individuals. Although statistics are not formally tracked, the Securities and Exchange Commission estimated that about 2 percent of all IRAs are self-directed, which works out to be more than $100 billion. Firms such as Millennium Trust and Pensco Trust have seen come crazy growth in self-directed IRAs since 2005. But is this a good thing or is this type of IRA too risky for the average person to control.\nWhat is a Self-Directed IRA?\n----------------------------\nA Self-Directed Individual Retirement Account (SDIRA) is an IRA that requires the account owner to make investment decisions and investments on behalf of the retirement plan. IRS regulations require that either a qualified trustee, or custodian hold the IRA assets on behalf of the IRA owner. Generally the trustee\/custodian will maintain the assets and all transaction and other records pertaining to them, file required IRS reports, issue client statements, assist in helping clients understand the rules and regulations pertaining to certain prohibited transactions, and perform other administrative duties on behalf of the self-directed IRA owner for the life of the IRA account.\nSelf-directed IRA accounts are typically not limited to a select group of asset types (e.g., stocks, bonds, and mutual funds), and most truly self-directed IRA custodians will permit their clients to engage in most investments, if not all, of the IRS permitted investment types (an almost unlimited array of possibilities including foreign real estate). Some of the additional investment options permitted under the regulations include, but are not limited to, real estate, stocks, mortgages, franchises, partnerships, private equity and tax liens.\nWhat Types of Transactions Are Prohibited?\n------------------------------------------\nYou cannot invest in collectibles, S-Corporations or life insurance contracts. There are also certain transactions in which you cannot participate when using IRA funds, designated as \"prohibited transactions.\" Prohibited transactions are defined in IRC § 4975(c)(1) and IRS Publication 590. These transactions were established to maintain that everything the IRA engages in is for the exclusive benefit of the retirement plan. Sometimes professionals refer to these as \"self-dealing\" transactions. Self-dealing occurs when an IRA owner uses their individual retirement funds for their personal benefit instead of benefiting the IRA. If you violate these rules, your entire IRA could loose its tax-deferred or tax-free status. There is more detail on prohibited transactions at the end of this article.\nSelecting and Setting Up a Self-Directed IRA\n--------------------------------------------\nCreating a self-directed IRA is easy. In order to own these special assets in a retirement account, you'll have to find a firm that offers a self-directed IRA. You can't buy real estate or other special assets with a basic IRA, so the first step will be to open a self-directed IRA. A number of financial institutions such as banks, insurance companies and brokerages can assist you in opening a self-directed IRA, but most likely your investment options will be limited to the products they sell and service. To buy these special assets with your IRA you will most likely have to find an independent administrator to serve as a trustee or custodian, and you must do your homework in this selection as well. Here is an explanation of the different types of administrators that you may encounter:\n*   **Fee-Based Administrators.**  A set fee is charged for each transaction you request the administrator to perform.\n*   **Asset-Based Administrators.**  A set percentage of your total asset value is charged annually regardless of the tasks performed. The percentage will typically be 1.5 percent or lower, contingent on total asset value, the commission percentage decreasing as asset value increases.\n*   **Hybrid-Based Administrator.**  This type of management involves a combination of asset and fee, and seems to be the most predominant method used currently according to our research.\nSome examples of well-known established companies that handle this sort of IRA include; Entrust, Equity Trust, Guidant Financial or Pensco Trust. When selecting a company to administer the IRA, consider that experience is key. You'll want to ensure you fully understand the fees involved, but ask hard questions to ensure they are well-versed in the requirements involving the type of investment you plan to utilize. Many companies\/administrators do not even take on real estate contracts, as the complexities are numerous.\nDecide on the Type and Funding of the Account\n---------------------------------------------\nYou can either setup a new account and deposit the IRA contribution limit or you can rollover an existing IRA, 401(k) or other qualified retirement plan. You do not have to rollover all of your existing IRA or retirement account. For example, you may want to experiment with this method by moving a portion of your retirement into a self-directed plan. Decide on the type of account that will work best for your needs. An example would be a Roth IRA, traditional IRA, solo 401(k) or others. Your administrator should be able to assist you in choosing the appropriate type of account.\nContribution Limits and Types of Self-Directed IRAs\n---------------------------------------------------\n*   Contribution limits for 2017 are $5,500 if you're under 50 and $6,500 for those age 50 and older.\n*   A traditional IRA comes in two flavors: deductible and nondeductible.\n*   To qualify for a deductible IRA, which lets you deduct all or part of your contributions from your taxable income, use the following guidelines:\n    *   If you have no retirement plan at work and you're under 70-1\/2, you can invest in a deductible IRA and deduct the entire amount from your taxes.\n    *   If you have a 401(k) or other retirement plan at work, you may fully or partially deduct your contribution only if your adjusted gross income (AGI) qualifies. For 2017, your AGI cannot exceed $72,000 if you're single or head of household, or $119,000 if you're married and filing jointly.\n    *   If you're not covered by a retirement plan, but your spouse is, you may qualify for a full or partial deduction if you file jointly and your AGI is below $194,000. (The same rule applies if you're a non-working spouse of someone covered by a retirement plan at work.)\n*   If you're not eligible to contribute to a deductible IRA, you may be eligible to contribute to a Roth IRA. If your AGI is below $133,000 (single individuals) or $196,000 (married, filing jointly).\n*   The above contribution limits can be found in Publication 590 at www.irs.gov.\nI've Set Up My Self-Directed IRA — What's Next?\n-----------------------------------------------\nYou've selected an administrator to act as the trustee of your account and facilitate investments on your behalf. They keep the books, disburse money, and collect profits for the IRA, but they may not give investment advice. So now comes the real work: you must go out and find the asset to invest in. You are completely responsible for the due diligence involved; once you've selected the property, business or asset, your administrator can assist you in the transaction. The key is, all income or proceeds from the investment are returned to the IRA. Transactions that can be interpreted as providing immediate financial gain to self-directed account or other disqualified persons holders are not allowed.\nA disqualified person in accordance with (IRC 4975(e)(2)) is defined as:\n*   The IRA owner.\n*   The spouse of the IRA owner.\n*   Lineal descendants (such as daughters, sons, grandchildren) of the IRA owner.\n*   Spouses of lineal descendants (such as a son or daughter-in-law) of the IRA owner.\n*   Lineal ancestors (Mother, Father, Grandparents) of the IRA owner.\n*   Fiduciaries (those providing services to the plan) to the IRA owner.\n*   Investment advisors.\n*   Any business entity in which any of the disqualified persons as defined above has a 50 percent or greater interest.\n**Prohibited Transactions:** Defined in IRC 4975(c)(1) and IRS Publication 590, these rules were established to maintain that everything the IRA engages in is for the \"exclusive benefit of the retirement plan.\" Often referred to as self-dealing transactions, this section of the code identifies prohibited transactions to include the following (either direct or indirect):\n*   Lending money or other extension of credit between a plan and a disqualified person. For example, you cannot personally guarantee a loan for a real estate purchase by your IRA.\n*   Selling, exchanging, or leasing, any property between a plan and a disqualified person. For example, your IRA cannot buy property you currently own from you.\n*   Dealing with income or assets of a plan by a disqualified person who is a fiduciary acting in his own interest or for his own account. For example, you should not loan money to your Financial Advisor.\n*   Furnishing goods, services, or facilities between a plan and a disqualified person. For example, you cannot use furniture from your primary residence to furnish your IRAs rental property.\n*   Transferring or using by or for the benefit of, a disqualified person the income or assets of a plan. For example, your IRA cannot buy a timeshare condo you or your family intends to use.\n*   Receiving any consideration for his or her personal account by a disqualified person who is a fiduciary from any party dealing with the plan in connection with a transaction involving the income or assets of the plan. For example, you cannot pay yourself income from profits generated from your IRAs rental property.\nIn summary, the use of a self-directed IRA is an excellent method to diversify your retirement accounts, if you do your due diligence effectively as well as utilize informed, effective advisors. Real estate and other special investments have a potential higher rate of return through the combination of cash flow and appreciation, potentially accelerating the value of the IRA quicker than some traditional methods. Due to the complexities of the IRS rules and regulations regarding this type of investment vehicle, it is also a necessity to be diligent and informed. Following this advice, the self-directed IRA as an investment can be a very good choice. END
 TITLE: Using Self-Directed IRAs for Retirement Investing CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Don't Waste Money - Learn to Spend Your Money Wisely CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\nThe dollar does not go as far as it once did when it comes to paying for goods and services. According to a recent study by the Census Bureau, the typical American family's income, after adjusting for inflation, is roughly back where it was in 1996. That is a staggering statistic but one that may not be too surprising to most of us. A lot of Americans lost their high paying jobs and need to think about adjusting their spending habits accordingly. Learn how to stop wasting your hard earned money and start spending your money more wisely.\nStop Paying ATM and Overdraft Fees\n----------------------------------\nIt is not bad enough that when we use a bank that is not ours, we get charged an ATM fee, but then our own bank turns around and charges us a fee. These little fees every month add up to hundreds of dollars in a year, which is a lot of wasted money. To avoid these fees, become more ATM savvy and use only ATM's that are in your network. And, talk to your banking professional about ways to eliminate fees by maybe opening a different account or keeping a balance in an account. Just a little more attention to your banking habits can mean a big savings in ATM fees.\nThe same holds true for overdraft fees. This is a fee which can be completely avoided by keeping a \"cushion\" in a savings account, having your employer use direct deposit for your payroll, and taking advantage of internet access to your accounts so you can monitor them better. You might also want to consider signing up for some type of overdraft protection program with your bank.\nWhy Buy New When Used Will Do\n-----------------------------\nFrom cars to clothes there is nothing you can't buy used. There are numerous websites, such as EBay and Craigslist, just to name a few, who specialize in selling used stuff. You can even barter for things. In this economy, there are a lot of people trying to get rid of their \"stuff\" either because they need the money or they are losing their home to a foreclosure. Look for local garage sales in the weekend newspaper and visit local thrift stores like GoodWill. You can get gently used furniture, clothes, toys, or appliances for a fraction of the cost of buying new.\nNegotiate a Better Deal and Save Money\n--------------------------------------\nOne of the easiest ways to save money is to simply ask for a better deal. You are not going to go into a car dealer and pay sticker price, right? So why not apply your negotiation skills to other vendors, such as, doctors, lawyers, that lady selling purses on the street corner, or the person in charge of the garage sale. All they can do is say \"No\" and if they do, you can always take your business elsewhere. There are a lot of companies and people out there who need the revenue and will be willing to make a deal with you.\nBuy Generic Brands\n------------------\nWhy pay for name brands when generics will do? Have you ever noticed all the store brands when you are walking down the grocery store aisle — they look just the same as the name brand items but at a fraction of the cost. Does it really matter if you use Heinz ketchup? Why not use the store brand and save a buck or two.\nThe same can be said for prescriptions. Most medications come in a generic brand and are far less expensive than the name brand. Just make sure to check with your doctor first before you use the generic brand just to make sure there are no side effects.\nBuy a Smaller House\n-------------------\nRight now, the average American house is twice the size it was 50 years ago. It seems as family size got smaller, the houses got bigger. Now that makes sense! Not! Anyway, a bigger house means more furniture, higher utilities, more upkeep, and more \"stuff\" to buy to put in it. Ever notice the more room you have the more you buy — whether you need it or not. Three car garage, why not fill the one space with more junk you don't need. You will be a garage sale waiting to happen.\nDon't Pay Interest on Credit Cards — Pay With Cash\n--------------------------------------------------\nUsing someone else's money, like a bank or credit union, costs you more money in the long run in interest payments. Learn to pay with cash when you can and pay off the balances on those charge cards if you do happen to use them. If you have to make a large purchase, such as an appliance or car, make sure to get the lowest interest rate you can. This comes back negotiating a better interest rate or tell them you will take you business elsewhere. You will be surprised how accommodating a vendor can be!\nUsing some of these helpful tips will make your hard earned money stretch a little further. You are already working too hard to make money, so don't blow it on frivolous purchases when there are cheaper alternatives available. END
 TITLE: Save Money Through Automatic Savings Accounts CONTENT: Best Way to Save Money — Automate Your Savings\n----------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 8, 2017_\nLike all things that are good for us, we know how important it is to save and invest for the future, but most Americans are not saving enough. Despite the importance of saving for a rainy day, the devil is in the details, and finding the money to start a savings plan can be difficult, especially in the current era of high unemployment, rising gas prices and increased costs of living. Studies show that once we do set money aside, we are likely to leave it there. But how to get started? Automate!\nWays to Automate Your Savings\n-----------------------------\nWhen it comes to saving money, it may be helpful to take a hint from Uncle Sam. Most workers in this country have their taxes automatically withdrawn from their paychecks, and as a result many of us never realize exactly how much we are paying into the federal kitty. The money is gone before it ever reaches our hands or our bank accounts, and over time we have simply learned to make do with what's left.\nSavers can use this same principle to put aside money for emergencies, large purchases and even retirement. By dedicating a portion of each and every paycheck to savings and investments, workers can learn to live on the remaining funds while building up a significant nest egg.\n### Direct Deposit\nOne of the simplest ways to get started is through direct deposit. Ask your employer to have your paycheck deposited directly into your bank account, thus avoiding the hassles of long lines at the bank and the risk of lost or misdirected checks. Many employers will allow workers to split their direct deposits between two or more financial institutions, making it easy for workers to dedicate a portion of their paychecks to a savings account or money market fund. Even in today's low interest rate environment it is possible to find some accounts with attractive rates, and dedicating a portion of each check to savings that can help that emergency fund get off to a good start.\n### Keep the Change\nAnother easy method to start putting money into a savings account is to sign up for a \"keep the change\" type of service at your bank. Many banks offer a service that will round up purchases and put the extra change into a savings account. You never know you are missing the money and one day you look at your savings account and there is lots of money in there! What a nice surprise.\n### Set Up a Dedicated Savings Account\nThose same workers can help fund their emergency accounts even faster by dedicating any \"extra\" money they receive to their favorite savings account. From cash birthday and holiday presents to bonuses and incentive payments, workers can build up their rainy day funds without impacting their lifestyle or that of their family.\nThe same is true with annual raises, and many workers will want to dedicate a portion of their annual raise to the savings portion of their direct deposit arrangement. Ramping up the percentage devoted to savings is a great way to grow a significant nest egg with a minimum of hassle and hardship.\nLearning to live on less than we make is definitely a learned behavior, but it is one of the most important lessons we will ever learn. No matter what your current salary, chances are you can set aside at least a few dollars from each paycheck. While that may not seem significant, those dollars can add up quickly, and a well funded emergency fund is a great way to cushion the blow of an unexpected financial setback. END
 TITLE: Information on Rolling Over a 401K Account CONTENT: How and Why to Roll Over a 401(k)\n---------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 18, 2017_\nWhen you leave an employer, it is advisable that you take your 401(k) funds with you. This gives you a clean break from your former employer, not to mention lower fees and more control over your investment options if you choose to roll over to an Individual Retirement Account (IRA).\n**Why should I roll over my 401(k) to an IRA?**\n-----------------------------------------------\nWhile you certainly can roll over your current employer-sponsored 401(k) to that of your new employer’s, it is probably in your best interest to open an IRA instead.\nIRA’s have fewer fees than 401(k) accounts, as well as more opportunities for you to pick and choose your investments (e.g., via stocks, bonds, mutual funds).\nThis is not to say you should avoid setting up a 401(k) account with your new employer, as you do not want to miss out on the employer match. You’ll simply have two retirement accounts working for you – the IRA you rolled over from your former employer’s 401(k), as well as your new employer’s 401(k) account.\n**Should I close out my current 401(k) before opening a new one?**\n------------------------------------------------------------------\nNo. The last thing you want to do is have your 401(k) funds turned over directly to you.\nEven if you immediately use the funds to open your new retirement account, the fact that you touched the money means the IRS will require the withholding of 20 percent of the funds. In order to get those funds back, you must file accordingly at tax time and wait for the funds with your return. You then have 60 days to return he funds to your new account, otherwise you will be taxed on it.\nYou’ll also be charged a 10 percent penalty fee for early distribution of the funds (unless you are at least 59 1\/2 years old).\n**What steps should I take to roll over my 401(k)?**\n----------------------------------------------------\nBefore initiating changes to your 401(k) account:\n*   Make sure you know the details of your current 401(k), including how much is in the account, how much you have contributed, how much your employer has contributed, how much the fund has grown, and fees associated with the account.\n*   Decide which type of retirement account you want to roll over to. Again, you may roll over to your new employer’s 401(K), but an IRA is likely your best bet. Then it’s a matter of deciding between a traditional or Roth IRA.\n*   If you decide to go with an IRA, shop around for the best fees and investment options.\n*   Before closing out your old account, set up the new one first. Plan on scheduling a phone call with the custodian of your new account so they can walk you through the set-up process and smooth transfer of the funds.\nLearn more about IRA’s. END
 TITLE: Information on Rolling Over a 401K Account CONTENT:    |  |  |  | \n: . END
 TITLE: How to Save 500 Dollars In Time For Christmas CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\nWould you like to build up your holiday gift budget in just a few short months? Would an extra $500 or more in your pocket in December make a big difference to your Christmas shopping? By making a few adjustments to your budget now, you could save enough money to be able to buy the things you want for your family and friends.\nThe following tips are easy ways to save money, and cut expenditure from your daily budget. Start off by opening a separate savings account and deposit $50 into it right away. This account will only be used for your Christmas fund. Then, by following these tips, you will quickly be able to save at least $500 before Christmas.\nEliminate One Meal Out Each Week\n--------------------------------\nMany people purchase their lunch every day at work. This cost ranges from $5 to $6 per day, or between $25 and $30 per week. Cutting back to just **one** restaurant lunch per week can save you up to $260 in a year.\nReduce Your TV Service for Two Months\n-------------------------------------\nIf you reduce your cable package by $25 a month or cut out a premium channel or two, that might save another $25 to $50 a month. You could save even more if you get rid of cable all together! What's so wrong with watching just the local channels.\n### Coffee\nThe daily coffee can be quite an expense, especially if you have two or three cups a day from the local Starbucks. Try limiting yourself to one cup a day as a treat, or even not buying a coffee every single day. If you can save just $2.50 per day on coffee, you will save $10 a week. If this is a sacrifice you could commit to for a short time, it could make a real difference to your Christmas this year.\n### Groceries\nWhen budgeting for groceries, you can work out how much you are generally spending per meal by dividing the total cost of your normal weekly grocery shop by the number of meals for your family in the week. If you currently spend $10 per meal on average, try reducing this to $8 per meal.\nYou may try a cheaper cut of meat, or limit the amount of extras you purchase at the grocery store. Try not to shop when you are hungry because you tend to put more in your shopping cart at those times. If you can just save $2 per main meal, you could save about $14 a week.\n### Entertainment at Home Instead of Going Out\nInstead of eating out or going out to the movies, try to find cheaper entertainment options for the next couple of months. There are usually free activities in every council area every month. Find out what they are and have fun free.\nGoing to a museum can be a cheap day out for the whole family, rather than paying for movie tickets. If you do go to the movies, try to go on the cheaper day or use a movie deal voucher. Avoid the expensive food in the movie snack bar and bring in your own snacks from home.\nIf you would normally spend $100 on entertainment in a month, reduce it to $75 or $50. The more you save, the better your December will be!\n### Savings Add Up\nBy making some simple changes to your budget NOW, you can plan to have a terrific Christmas. There are plenty of other ways to save money. Just look at what you are currently spending on any one item and try to reduce it by a few dollars each week. Those dollars add up quickly.\nUsing the examples above, a family could save $25 a week on work lunches (and $50 if both parents work) by cutting $5 a day from their lunch budget. This will put between $250 and $500 into your Christmas account, if you can make the savings for 10 weeks in a row.\nSaving $10 a week on coffee is another $100, and cutting the grocery bill by $14 per week is another $140. Families can save $100 on fuel between now and Christmas and could save another $100 or so on entertainment. Adding these savings together, an average family could save about $690 between now and Christmas. This will make your Christmas a very merry one indeed. END
 TITLE: Limits for Retirement Savings Plans CONTENT: Retirement Savings Plan Limits: Using 401(k) and IRA Savings Plans\n------------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 18, 2017_\nLooking into retirement savings plans can leave your head swimming in numbers. Don’t let that distract from the all-important task at hand — determining your investment eligibility and contribution limits. Here’s to breaking it down.\n**401(k) — Employer Sponsored Retirement Account**\n--------------------------------------------------\n### **How Much Can I Contribute to My 401(k)?**\nYou can contribute up to $18,000 per year to your 401(k). Unless you are at least 50 years old, in which case you can contribute an additional $6,000 “catch up” amount, for a total up to $24,000 per year.\n**IRA — Individual Retirement Account**\n---------------------------------------\n### **How Much Can I Contribute to an IRA?**\nYou can contribute up to $5,500 annually to your traditional IRA. Unless you are at least 50 years old, in which case you can contribute an additional $1,000 per year, for a total up to $6,500 per year.\n### **How Many Times Per Year Can I Roll Over my IRA?**\nYou can roll over your IRA every 12 months. An additional roll over before a year has passed could result in income tax due on the rolled over amount, as well as an early withdrawal penalty and an excess contributions tax.\n### **Under What Circumstances am I Eligible for the Saver’s Credit?**\nThe AGI (adjusted gross income) maximum to qualify for the Saver’s Credit in 2016:\n*   $30,750 for singles and married individuals filing separately\n*   $46,120 for heads of household\n*   $61,500 for married couples\n**ROTH IRA**\n------------\n### **What Are the Contribution Limits for a Roth IRA?**\nIf you file as an individual (single or head of household), you can contribute:\n*   The maximum allowable amount ($5,500; $6,500 if you are at least 50 years old) if your adjusted gross income is less than $116,000 per year.\n*   A reduced amount if your adjusted gross income is $116,000 to $131,000 per year.\n*   Nothing if your adjusted gross income is more than $131,000 per year.\nIf you file as a married couple, you can contribute:\n*   The maximum amount if your combined adjusted gross income is less than $183,000 per year.\n*   A reduced amount if your combined adjusted gross income is $183,000 to $193,000 per year.\n*   Nothing if your combined adjusted gross income is more than $193,000 per year.\nWhat is the difference between a traditional and Roth IRA?\n**MyRA**\n--------\n### **Under What Circumstances am I Eligible for a MyRA Account?**\nIf you file as an individual (single or head of household), you may contribute to a MyRA account if you have an adjusted gross income of less than $129,000 per year.\nIf you file as a married couple, you may contribute to a MyRA account if you have a combined adjusted gross income of less than $191,000 per year.\n### **How Much do I Need to Open a MyRA Account?**\nYou can start a myRA account with an initial deposit of as little as $25.\n### **What is the Minimum I Must Contribute to a MyRA Account on a Regular Basis?**\nYou may contribute as little as $5 per payroll deduction.\n### **How Long Can I Contribute to a MyRA Account?**\nYou may contribute up to 30 years or $15,000, whichever comes first.\nWhat is MyRA, and is it right for me? END
 TITLE: 401(k) Investing For a New Employee CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: August 18, 2017_\nCongratulations on landing that new job. Before you begin celebrating, you still have some work to do before your first official day on the job. It is important to review your employer's benefits package so you can decide on the health insurance plan that's right for you among other things like: Should you add life insurance? What is a flexible spending account and should you elect to have it? And, finally, the scariest part, creating your 401(k) account.\nHow Do You Put Together a 401(k) Account?\n-----------------------------------------\nWhen you are considering how to go about putting your 401(k) account together, all of the investment data can be mind boggling when trying to figure out where to put your money. In the old days, employees were left to do their own research before investing, which sometimes discouraged people from starting up their retirement accounts. Lucky for you, most companies are adopting all sorts of options aimed at simplifying your experience.\nMost folks entering the work force for the first time are in their twenties and the thought of saving for retirement is about as exciting as watching paint dry, but it is something that should be taken seriously. It doesn't really matter how old you are, once you start saving, you've started on the right track towards a better retirement. Even if you're in your forties and have never had a savings or retirement account, you can still do this. It's never too late to begin saving.\nSome people believe they'll have to work the rest of their lives so what's the point in saving? The truth is you never know what life will throw your way. It's fun to say you like to live life on the edge but in reality, do you? Taking the time to get your future financial house in order will be well worth it. Heck, even if you do work your entire life, wouldn't it be great to receive a \"bonus\" check every month from your 401(k) account while you are in your golden years?\nWhy Should You Save Money in a 401(k) Account?\n----------------------------------------------\nIf you need some more convincing as to why you should start a 401(k) account, hopefully the following facts will entice you a bit. Contributing to your 401(k) lessens the taxes you pay annually. Let's do the math.\nLet's say you live in Wisconsin, are single and earn $26,000 per year with bi-weekly paychecks. The taxes taken out of your paycheck are set at: Federal (15%), state (% varies by state), FICA (4.2%), and Medicare (1.45%). Broken down, you earn $1,000 per paycheck minus taxes: Federal = $150, state (6.5%) = $65, FICA = $42 and Medicare = $14.50 for a total of $271.50.\nWhen you contribute 3 percent to your 401(k) (which equates to $30\/paycheck), your Federal tax is reduced to $144.50, state to $58.20, FICA to $41.74 and Medicare to $14.06 for a total of $258.50 in taxes. **You've saved $16.50.** Over a year's time, you would save $429 in taxes because you invested in your retirement. Your retirement account would have $360 in it not counting change in value or interest and dividends you've earned.\nAlso, by electing to participate in your company's Before-Tax Employee Insurance Benefits and Health Care or Dependent Day Care Reimbursement deductions, you save even more in taxes every year.\nThere is also the matter of compounding your earnings. If you were to continue contributing 3 percent over the lifetime of your career, your nest egg is on the fast track for growth with little effort on your part. If you always contributed 3 percent and your employer matches 100 percent of your contributions, you get decent annual increases, say 4 percent, and your annual rate of return averages 5 percent, after 30 years, you would have contributed $43,000 to your account, but your account would be worth $180,000.\nHow to Set Up a 401(k) Account\n------------------------------\nWhen you're ready to dive in and get your account set up, we've listed a few options below that could make your experience relatively quick and easy. Like most people, you may not like the thought of tracking and\/or managing your 401(k) account. Fortunately, there are options to take care of all this, too! Below are three options that can help make your experience a good one.\n1.  **Automatic Enrollment —** Some companies automatically enroll new employees in their 401(k) plans. Typically, they elect to defer 1 or 2 percent of your salary into your 401(k). Your contributions are \"pre-tax\" and are invested into a default fund. The default fund is normally low-risk, like a money market fund. The investment return on money market funds is pretty low, but it's a pretty safe bet and is going towards your retirement. If the company offers a match to your contribution, you'll also get a free chunk of cash contributed to your account by your employer without having to lift a finger. You can always change your deferral percentage or redirect your contributions to other funds at any time if you wish.\n2.  **Automated 401(k) Investment Management —** Some companies offer the opportunity to turn control of your 401(k) investing over to an automated management system. This takes a little bit of effort up front as you will need to fill out a (sometimes lengthy) questionnaire to identify the sort of investor you are. Based on the information you provide, the system will understand how to invest your money.\n    How does the system figure out what's right for you? Well, it first determines if you are an aggressive, moderate or conservative investor. From there it determines how to diversify your investments. The multitude of investment options (funds) available to you are grouped by asset class. Asset classes are a way to categorize funds. Some of these are: large-, mid- and small-cap funds, guaranteed, balanced and bond funds among others. The system selects the appropriate funds within some or all of these classes and distributes your 401(k) contributions between them.\n    On a periodic basis (usually quarterly), your fund performance is evaluated and your account may be rebalanced to keep you on track with your investment goals. This means that on your behalf, the system may redistribute your money between various funds, in your best interest, of course. This management service comes with a price. Typically the fee is based on your account balance. Be sure you weigh in the cost when making your decision whether to opt for the service.\n3.  **Target Date Funds —** If you really have no idea what to do with the flood of investment information that's available and just want to invest your money somewhere decent and forget about it, you're in luck! You may want to consider target date funds.\n    Target date funds are the 'set it and forget it' funds that investors can choose based on their retirement year. For example, the target date investment options for investors in their twenties tend to be more aggressive. As these individuals move closer to retirement, the investment options adjust within the fund, becoming more conservative as they approach retirement.\n    It's easy to choose which target date fund is right for you as the retirement year is included in the name of the fund. Someone in their thirties would probably select a fund that contains 2030 or 2035 in the name. If you are in your forties, choose funds containing 2020 or 2025 in the name. You can actually pick any target date fund, meaning you're not restricted to picking a fund associated with your retirement year. If you're a typical investor however, you'll want to stick with the funds geared towards your age group.\nHowever you choose to get your retirement account going, the most important thing is to get it going. Good luck and happy investing. END
 TITLE: 401(k) Investing For a New Employee CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Estimate Your Fuel Costs and Save Money CONTENT: Trade a Gas-Guzzler for One With Better Fuel Economy — Will You Save Money?\n---------------------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated:  July 13, 2010_\nIt's the million dollar question many of us are facing with gas costs prices hovering around $3 to $4 a gallon — will trading in my gas guzzler save me money in the long run?\nTake me for example - I drive a 3\/4 ton Chevy Silverado with a towing package and it is my only vehicle and did I mention it gets 12 mpg.  Ouch.  And, given my lifestyle includes a wide array of outdoor activities requiring a truck, it is not an option for me to not own some type of pick up truck. Does it make sense for me to buy a fuel efficient car and sell my truck, simply park my 10 year old truck aside for monthly camping or hauling trips and invest in a second fuel-efficient car, or does it make more economic sense to continue as a \"one truck\" family?\nFor many of our readers, their situation is fairly similar. I paid cash for my truck initially, so I do not have to account for depreciation or money owed on it, so some of you may have a slightly different scenario. If you've purchased your SUV or truck in the past several years and have a outstanding loan balance, it is likely you owe more than the vehicle is worth, considering the high depreciation that comes with the first few years of ownership, combined with the fact that these gas guzzling vehicles are just not in demand right now. In fact, according to a recent article in the Wall Street Journal, a 3 year old large SUV today is worth about $2,000 to $3,000 less at trade-in than a three-year-old large SUV would have been, before gas prices began to soar. A three-year old Chevy Tahoe that might have fetched $19,700, may only be worth $16,400 at trade-in. This equates to an additional loss of approximately 16 percent, on top of \"typical\" depreciation.\n### Where Do You Start This Analysis?\nAfter reading a lot of articles on the internet, I think the most helpful and easiest strategy to understand is to use a concept called \"True Cost to Own,\" or TCO. This is all of the ownership and operation costs for a given vehicle for five years, including depreciation, financing, insurance, taxes and fees, fuel, maintenance and repairs. We found several automobile websites that used this or similar analysis tools to help consumers compare these costs for different vehicles, circumstances, etc. These sites include Kelley Blue Book, Consumer Reports, and Edmunds. You can define your situation and needs and using these or other online tools, and make some useful comparisons.\nFirst, let's define each of the variables that need to be considered in calculating the cost of ownership of any given vehicle:\n*   **Depreciation -** Depreciation is the decline in a car's value over the course of its useful life. The standard rule of thumb for used cars is that they lose approximately 15 percent to 20 percent of their value each year. This is the largest ownership cost and according to Consumer Reports, a typical new vehicle depreciates about 65 percent over five years.\n*   **Fuel Costs -** No need to stress the fact that these have become extremely significant; and are probably the second largest cost for an average driver. Calculations will vary based on the annual mileage traveled, typical assumptions are 12 to 15 thousand miles per year.\n*   **Interest -** Interest accounts for about 12 percent of five-year ownership costs. It is typically calculated based on a five-year loan, with a 15 percent down payment, because that is how many people buy cars.\n*   **Insurance:**Insurance costs vary depending on many factors, including your age, location, and driving record. And they can dramatically boost the ownership costs of models that otherwise would seem affordable.\n*   **Maintenance -** Maintenance and repair costs make up 4 percent of ownership costs over (the first) five years on average, according to data from Consumer Reports.\n*   **Sales Tax and other fees -** Sales tax costs owners an average of 4.83 percent.\n### What is Next?\nIf you want to compare the cost to own of any vehicle,  the website tools we listed above are easy to use and you just have to input your specific information such as the zip code you drive\/live in, and the statistics about your existing (or desired) vehicle. You will be provided a \"TCO\" figure, an estimate of all of the ownership and operation costs for five years. Additionally, a \"cost to own\" detail giving a breakdown of how the car's expenses change over the five-year period. With these tools, you can compare similar vehicles or a new versus used vehicle. Surprisingly, you may find that the purchase cost of a particular car appears to be a bargain, while the ensuing costs make it prohibitive for your budget.\nEdmunds also gives a nice comparison statistic in it's \"cost per mile\" to drive value. For example, it may be common knowledge that a Honda Civic is a good value for the money. With TCO, you can confirm this: The cost per mile is about 28 cents (I presume this is for a newer model), one of the lowest of any vehicle.\nWell, I'm still trying to decide whether it's beneficial to replace my old truck. There is not a \"canned\" program out there that is going to clarify this for me easily. Seems maybe I'll just have to do old fashioned math with my own assumptions to figure this out. I think I'll use the Honda Civic as my proposed replacement\/second car.\nSo for a used Honda Civic in my zip code (I chose a used 2003, did not specify a model) the TCO was 38 cents a mile and $28,182 for the next 5 years. If I don't finance, or my mileage is different than the 15,000 a year they estimate, I can modify the numbers accordingly (manually, just remove financing costs completely and increase or decrease gas costs accordingly). Also, if you don't buy from a dealer, you can reduce your sales tax as well.\nSo, the TCO for continuing to use my 1999 Chevy Silverado the next 5 years that has $140,000 miles on it is as follows. I'm going to have to use actual figures or manually calculate as the sites I've found don't look back that far:\n*   **Depreciation:**  Not sure it's worth much of anything now, but according to KBB used car tool it's value is approximately $6500. So, 10 percent a year for the next 5 years averages out to about $600\/year.\n*   **Fuel Costs:** 15,000 miles per year at 12 mpg and gas I'm going to use $4\/gallon (I'm not sure the websites have factored in recent jumps into their algorithms yet) thus $5000\/year for fuel.\n*   **Interest:**  Zero, the car is paid off.\n*   **Insurance:**  Pretty low, older vehicle, good driving record, I'll estimate an average of $600 a year based on what I now pay.\n*   **Maintenance:**  This is probably not going to be good. I could not find anyone giving estimates on a vehicle this old, so I'll use my records from the last several years on this and say $1500\/year.\n*   **Taxes and other fees:**  Vehicle license tax and emissions fees are approximately $75\/year average for my older vehicle.\n### Conclusion\nHow did I come out? Estimated TCO for my paid off gas guzzler is **$38,875 or 52 cents a mile.**  At the end of the 5 years, I don't think there is any value left on the vehicle, either. Yikes, the Honda Civic estimate gave me **38 cents a mile and $28,182, a difference of close to 30 percent**, not to mention it is still estimated to be worth about $5,000 after driving it 5 more years.\nNow my analysis is unique, remember, I used a highly rated economy car to compare, and my truck gets the worst mileage possible I think. If you have an earlier model SUV particularly if you are in the first several years of the depreciation curve, the figures may look completely different. The purpose of the article is simply to point out the variables that you need to consider when evaluating your own specific situation, and to share links to sites that can provide easy calculating tools and information to help you. Good luck!\nSo what to do? I've some ideas. RENT a truck when you need it. Hey, how about a joint venture with multiple families where you cost-share in a truck? Maybe find a boyfriend\/girlfriend who owns a truck? Might be tricky, but just some thoughts... Clearly, there needs to be some answers especially with single and 1-car families that must make a choice between economy and need.\nFor information from the FTC regarding Facts for consumers when buying and researching a used car, click here. END
 TITLE: Estimate Your Fuel Costs and Save Money CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: What to Do if Your Pension Plan is Terminated CONTENT: What Happens When Your Pension Plan Terminates?\n-----------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: April 14, 2015_\nPension plans are set up to provide people with income when they are no longer earning a regular income from employment. There are three main types of pensions plans; Employment-Based Pensions (Retirement Plans), Social and State Pensions, and Disability Pensions. In the normal course of events, most pension plans meet their objectives and pay out benefits as envisaged. However there are some situations when pension plans are terminated by either the employer or the Pension Benefits Guarantee Corporation (PBGC).\nContributions made by an employee to a pension plan are automatically vested. In contrast, employer contributions are usually subject to a period of partial or full vesting. When a pension plan terminates, all participants are automatically considered fully vested irrespective of what their vesting status was prior to termination.\nIn the majority of cases, the rules of an individual pension plan determine how employees receive benefits. Refer to the Summary Plan Description provided during enrollment for details. Federal laws relating to employee benefits also affect such distributions. The PBGC normally insures defined benefit contribution plans. Termination benefits also depend on whether the pension plan is fully funded or under funded.\nTermination of a Funded Pension Plan\n------------------------------------\nIn a **standard termination**, an employer decides to terminate a plan that is fully funded. If the plan is a defined benefits plan, the employer provides proof to the PBGC that there are sufficient assets to provide the benefits promised. The plan administrator purchases an annuity from an insurance company or provides a lump sum payment, if allowed, to provide the agreed benefits. Any guaranty provided to the plan by the PBGC ends at this stage.\nIn a standard termination, the plan administrator is required to send a _Notice of Termination_ to each participant at least 60 days before the termination. This is followed up with a _Notice of Plan Benefits_ no later than 6 months after the proposed date of termination providing pay out details.\nIf the pension plan is a defined contribution plan, the plan fiduciaries and trustee are responsible for the distribution of assets. The PBGC does not guarantee benefits for defined contribution plans.\nTermination of an Under Funded Pension Plan\n-------------------------------------------\nA defined benefits plan can also be terminated due to employer distress such as bankruptcy. In a **distress termination**, the employer has to satisfy either a bankruptcy court or the PBGC that it cannot continue in business unless the plan is ended. The PBGC may also decide to terminate a defined benefit plan to protect employees and to safeguard its guarantees due to under funding.\nIn both the above situations, the PBGC takes over as the trustee of the plan. It informs the plan administrator and also publishes a notice in the newspapers to this effect. The participants thereafter receive a general letter from PBGC detailing insurance program and guarantees. A more specific notice is issued once PBGC completes its review of plan assets and funding requirements.\nThe benefits due to each employee are based on plan assets and funds guaranteed by the PBGC for this purpose. The PBGC guarantees benefits to participants at normal as well as most early retirement stages. Plan survivors continue to receive annuity benefits. Participants who claimed disability benefits before the plan terminated are also honored.\nThe PBGC does not guarantee a monthly pension that is greater than what a participant was originally promised. The Employee Retirement Income Security Act sets limits on the maximum benefits that the PBGC can guarantee for each year based on a participant's and beneficiary's age on the plan termination date. If not currently receiving benefits, the relevant date will be when a participant is eligible to claim benefits.\nThere have been situations when employers abandon individual account plans such as 401(k) plans without appointing a fiduciary to manage them. To ease employee uncertainty and worry in such cases, the Department of Labor has issued rules to create a voluntary process of plan termination. The plan custodian then handles the distribution of assets and winding up of the plan.\n### Mergers\nPension plans can also terminate when the employer is subject to a merger or acquisition or if a division of a company closes down. The plan may merge with another or continue to operate under the former employer. When a pension plan is merged with another, the accrued benefits for participants in a defined benefit plan cannot be reduced. They are entitled to the benefits accrued in the earlier plan. For defined contribution plans, the value of benefits may be more or less depending on the performance of merged assets.\n### Participant Responsibilities and Compliance\nIrrespective of the situation under which a plan terminates, it is in the interest of the participant to comply with all requests for information by the plan administrator or the PBGC.\n*   Maintain a file with all relevant plan information.\n*   Inform the benefits administrator of any address or beneficiary changes.\n*   If the former employer is still responsible for plan administration following a merger, stay tuned to what other changes are contemplated.\nContact the plan administrator or the Department of Labor at 1.866.444.3272 for questions relating to your pension plan. To read more about the Pension Benefits Guarantee Corporation, visit their website: PBGC.gov. END
 TITLE: Facts on a 60 Day IRA Rollover Loan CONTENT: 5 Things You Need to Know About 60-Day IRA Rollover Loans\n---------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: May 24, 2018_\n_Written by: Rick Pendykoski_\nIf you’ve been saving retirement money in an IRA, you really shouldn’t be looking at this account as a source of emergency funds. Between the tax bill and penalties for early withdrawal, it’s best to just leave your IRA savings alone until retirement.\nIn times of dire need, you can use the 60-day rollover option to borrow against your IRA. Before you jump in, however, it’s important to carefully understand the IRA rollover rules and have a repayment plan in place. If you fail to follow the correct steps, you might end up losing a significant amount of money!\n**How Does a 60-Day IRA Rollover Work?**\n----------------------------------------\nA 60-day rollover allows you to make IRA withdrawals without penalty, and use the funds as a loan for 59 days. You will not be charged taxes or penalties as long as you repay the funds within 60 days, into the same account from which you made the withdrawal or another IRA.\nA certain amount may be withheld as income tax, which will be refunded after you file your returns. However, you will need to pay this amount out of your own pocket when you repay the loan, otherwise it will be treated as taxable income.\nLet's take for example — If you make a withdrawal of $50,000 and are charged $10,000 as income tax, the amount you receive will be $40,000. The $10,000 will be refunded at tax time, but you need to repay the full amount of $50,000 within 60 days. If you don’t, the IRS will treat the withheld amount as an early distribution and levy penalties and taxes on it.\nWhat Are the 5 IRA Rollover Rules to Remember?\n----------------------------------------------\nHere are 5 things you need to keep in mind before borrowing from IRA savings:\n**1\\. Reporting Rollovers while Filing Taxes** — Despite being tax-free, a 60-day IRA rollover needs to be reported as a nontaxable IRA distribution using a Form 1040 or Form 1040A. Fill in ‘0’ as the taxable amount if you repaid the entire withdrawal within 60 days, and write ‘rollover’ next to it.\n**2\\. Rollovers Aren’t Revolving Loans** — After a rollover, you cannot take another tax-free withdrawal through the account from which you took the 60-day loan or any other IRA, for a period of 12 months. The only exception is when you convert a traditional IRA to a Roth IRA.\n**3\\. You CANNOT Go Over 60 Days** — There are no extensions given for a 60-day IRA loan for any reason at all, even if the last day falls on a weekend or national holiday. To avoid taxes and penalties, make sure you don’t lose track of time and make the repayment as early as possible.\n**4\\. Watch Your Annual Contributions** — Along with keeping track of repayment deadlines, you also need to check your IRA contributions before performing a rollover. If your 60-day rollover causes you to exceed the annual IRA contribution limits, you will pay a penalty for excess contributions.\n**5\\. Rollover Errors Will Cost You** — Be very careful with a 60-day IRA rollover to avoid being hit with extra taxes and penalties. Mistakes such as accidentally requesting a second rollover within 12 months of the first or rolling over more than the annual contribution limit, cannot be corrected or reversed.\nProceed with caution when you’re considering a 60-day loan from your IRA, and arm yourself with knowledge about the rules and restrictions involved. To keep your withdrawal from being treated as a taxable distribution, make sure you can repay it within 60 days before applying for a rollover!\n* * *\n**Author Bio:**\nRick Pendykoski is the owner of Self Directed Retirement Plans LLC, a retirement planning firm based in Goodyear, AZ. He has over three decades of experience working with investments and retirement planning, and over the last 10 years has turned his focus to self-directed accounts and alternative investments. Rick regularly posts helpful tips and articles on his blog at SD Retirement as well as Business.com, SAP, MoneyForLunch, Biggerpocket, SocialMediaToday and NuWireInvestor. If you need help and guidance with traditional or alternative investments, email rick(at)sdretirementplans.com. END
 TITLE: Teach Money Value to Your Children CONTENT: Teaching Your Kids How to Save and Spend Money Wisely\n-----------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 8, 2017_\nIt is never too early to teach your kids about money. Instilling good habits regarding spending and saving should start as early as possible. An online study conducted by mint.com, showed that over half the respondents claimed they earned money while in or before elementary school. And, most of the respondents claimed they did not feel prepared to manage their money after high school and one in three ran into early credit card problems.\nBy the time your kids are teenagers, they will most likely have a rather large list of perceived needs ranging from iPhones to the latest fashion. Particularly if you as parents indulge yourselves regularly in the latest of electronic gadgets and luxury items, your teen is witness to your spending habits and will likely assume that these things are essential as well. Observation and repetition are two important ways children learn: if they see that you stick to a budget and spend money wisely, they are much more likely to adapt the same skills and attitude. To help give your children a responsible start in the financial arena, here are some tips for instilling saving-savvy life skills in your child:\n1.  **As soon as children can count, introduce them to money.**  Share with them regularly what the cost of items are: at the grocery store, happy meals at McDonalds, etc. Make comparisons such as \"if we wash our own car today instead of paying the carwash, we save $10; we can buy three happy meals with that!\" They will be able to relate to the savings and how this choice benefits them.\n2.  **When giving children an allowance, give them the money in denominations that encourage saving.** For instance, give them five $1 bills instead of a $5 bill, and suggest that at least one dollar be set aside in savings.\n3.  **Give them the tools to save.**  Initially, a simple piggy bank will do the trick. When they are old enough, open an account for them at your local bank; many banks offer incentives for kids to save, such as free monthly stickers, toys and treasures, etc.\n4.  **Help children learn the differences between needs, wants, and wishes.**  Use examples they can relate to; look around the house and discuss your family's choices and the things that you could live without. This will assist them in making wiser spending decisions in the future.\n5.  **Combine the value of instilling good work habits with financial ones.**  Give them extra money for specific household or work-related chores. These should be separate from the items that they are required to do as contributors for the household or their individual chores.\n6.  **Help your children set saving goals.**  Write them down; people rarely reach goals they haven't set in writing. Start with toys when they are young and create a plan on how to finance the purchase. Such goal-setting helps children learn to become responsible for themselves.\n7.  **Take the opportunity to teach children about how credit cards work.**  Explain to your child how to verify the charges, how to calculate a fair tip, and how to guard against credit card fraud.\n8.  **Encourage saving for college.**  If your teenager is already earning money from summer jobs or part-time work, you can have them save a portion of their paycheck for their college tuition. Having contributed something towards their college education will give them a sense of pride.\n9.  **Allow young people to make spending decisions.**  Test the adage of \"live and learn\" at an age when the learning is perhaps less expensive when their spending choices are less than desirable. Contingent on their choices, initiate discussion of spending pros and cons prior to the next spending spree. Show them through example the benefits of doing research before making major purchases, waiting for the right time to buy (during sales) and the use of coupons.\n10.  **Warn children about product marketing and advertising tricks.**  We are deluged with commercial messages about cool toys and fad products; will a product really perform and do what the commercials say? Is this really a good deal or is it too good to be true? Share the value of your vast experience with them.\n11.  **Teach them to share with others.**  An important part of teaching kids to be financially and socially responsible includes showing awareness they have a responsibility to other less fortunate people outside themselves and their family. Show them this through example by giving and volunteering to charity as a family.\nThese practices, when started while the kids are young, will help them grow into teens and young adults who know the value of hard-earned money. Remember that a solid education in money matters taught through example is one of the best tools you can give your kids, as it will aid them the rest of their lives. END
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 TITLE: What to Know About Investing In Stocks CONTENT: How to Invest in Stocks — The Basics\n------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 18, 2017_\nFortunes can be made or lost investing in the stock market. Investing in stocks in one of the best ways to create financial security and generate wealth. Whether you are beginning to save or already have a nest egg for retirement, your money should be working for you. Buying and selling stocks is one way to increase your wealth, but you need a solid understanding of how the stock market works and how to invest wisely. This article covers only the tip of the iceberg, but it should give you a general idea of using stocks as an investment tool.\nTo put it simply, a stock is a share in the ownership of a public company. Stocks represent a claim on a company's assets and earnings. When you buy a stock, you are in essence buying ownership in a company and these stocks are called \"equities.\"\nWhy Would a Company Issue Stock or Shares of their Company?\n-----------------------------------------------------------\nStocks are sold by the original owners of a company to acquire additional funds to help the company grow. This is called the Initial Public Offering (IPO) and the owners are basically selling control of their company to the stockholders. After the IPO, the shares are then resold on the stock market.\nWhat Determines the Price or Cost of a Certain Stock?\n-----------------------------------------------------\nStock prices are driven by the expectations of a corporations earnings, or profits. If traders think a company has high earnings or maybe their earnings will increase in the future, they bid up the price of the stock. So, if you buy a stock at $2 and say this company has a record year in earnings and now their stock is selling for $10, you can sell you stock and make a nice profit. But beware, the opposite can happen, too, and you will lose money.\nHow Do Stockholders Make or Lose Money?\n---------------------------------------\nA stockholder will make money on a stock as indicated above, buy the share at a low price and sell it later at a higher price. Another way stockholders can make money on a stock is through dividends. A dividend is a quarterly payment distributed to the stockholders based on the profits made by the company. The company's board of directors pays dividends out of earnings as a way to reward the stockholders for their investment.\nOn the flip side, a stockholder can lose money if they bought a stock at certain price and now that stock is selling for a price lower and they sell the stock at this lower price. A stock price will go down if a company is not doing well financially or maybe the products\/services offered by this company are no longer needed and this company has fallen out of \"favor\" by the public.\nTypes of Stocks\n---------------\nThere are two types of stocks; common stocks and preferred stocks. The stocks you see tracked by the Dow Jones or S&P 500 are common stocks. The value of these stocks depend on how they are traded at any given time.\nPreferred stocks can be issued by a corporation and these have the properties of both common stocks and bonds. Their values rise and fall along with the company's common stock prices, but they are like bonds in that they always make a fixed payment. It is for this reason most preferred stockholders do not sell their shares.\nWhat Kind of Investor Will Use Stocks in Their Portfolio?\n---------------------------------------------------------\nIn a recent article published by Forbes, 43 percent of Millenials identify themselves as conservative investors, whereas 27 percent of Gen-Xers and 31 percent of Boomers do. Also, 43 percent of Millenials said they would never be comfortable investing in the stock market. It seems that Millenials are more likely than any other generation to be \"risk-adverse\" and keep 52 percent of their savings in cash. So, the older the investor, the more likely that person is to invest in stocks.\nTerms to Be Familiar With Before You Start Investing in Stocks\n--------------------------------------------------------------\nBefore you jump into the world of stock buying and selling, you need to become familiar with some commonly used terminology.\nNYSE, SEC, NASDAQ — These are stock exchanges and act as a clearinghouse of sorts for buying and selling stocks. Each exchange buys and sells certain stocks and each one plays a major role in our global economy.\nStockbroker — A stockbroker is a regulated professional who is usually associated with a brokerage firm, who buys and sells stocks for clients. In return for his\/her services, a stockbroker is paid a fee or commission. In the U.S., a stockbroker must pass both a Series 7 and either a Series 63 or 66 exams in order to be properly licensed.\nCommissions — Before you open up an investment account, you need to consider the costs you will incur from buying and selling stocks. There are a lot of investment companies out there so do your homework and find out all their costs associated with trading stock. You will be paying a commission to the firm or stockbroker when you buy and sell stocks.\nDiversify — Diversification means investing in a wide range of assets so you reduce the risk of losing all of your money based on one company's performance. To coin an old adage; \"Don't put all of your eggs in one basket.\" Buy stock in different companies that offer totally different products. For example, maybe buy stock in Apple and then buy stock in a Utility company. Completely different products with completely different markets.  \nAre Stocks a Good Thing to Have in Your Investment Portfolio?\n-------------------------------------------------------------\nAs we stated before, diversity is a good thing when it comes to investing and having different types of investment tools in your portfolio. The best advice we can give it to talk to a financial professional before you risk a lot of money in any one investment. And, always do your homework and be an educated and informed investor — don't leave it all up to others since it is YOUR money they are dealing with. END
 TITLE: Using Certificates of Deposit as an Investment Option CONTENT: 17 Things to Know About Certificates of Deposit (CD's)\n------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 19, 2017_\nThough certificates of deposit are among the most basic of investment options, that’s not to say they should be entered into blindly. As with any place you plan to put your hard-earned money, the more you know about CDs, the better. Here’s a good place to start.\n**1)**  **What is a certificate of deposit (CD)?**\n--------------------------------------------------\nA CD is a certificate you receive from a bank or credit union in exchange for an interest-earning deposit you’ve made with them – and agreed to keep there – for a specified period of time.\n**2)**  **What are CD terms?**\n------------------------------\nA CD term is the amount of time you agree to keep your deposit account open. These terms vary, from as little as 1 month up to 20 years. The availability of terms depends on the institution from which you choose to open your CD account. The most common terms are 6 months to 5 years.\n**3)**  **Which is the best CD term to choose?**\n------------------------------------------------\nIt varies according to circumstance.\nFor instance, you typically see higher interest rates on longer term CDs. However, you’re probably better served choosing a shorter term (i.e., one with lower interest rates) if you know you may need to access the cash sooner than later.\nThat said, even if you know you won’t need the money for years to come, signing on to a shorter term CD may be more lucrative in the long run.\nFor instance, interest rates may rise while your money is tied up in a fixed-rate CD. The shorter the term, the sooner you can cash out that CD and open a new one at the higher interest rate.\n**4)**  **Are there different types of CD options?**\n----------------------------------------------------\nYes. There are several types of CD options to choose from, like:\n*   Traditional, fixed-rate CDs\n*   Variable-rate CDs\n*   CDs with low or no penalty for early withdrawal (but at lower interest rate)\n*   Callable CDs, the terms of which the bank can change at any time (but at higher interest rate)\n*   Bump-up CDs allowing you to “bump up” to a higher rate once per term (but at lower initial interest rate)\n*   Indexed or structured CDs, which are linked to other types of investments\n**5)**  **Can I take my money out of a CD before the term ends?**\n-----------------------------------------------------------------\nYes, you can, but for a price. You’ll pay a penalty for early withdrawal and, in some cases, you may even lose part of your initial deposit.\n**6)**  **Are CDs federally insured?**\n--------------------------------------\nYes. CDs issued by a bank are FDIC-insured; CDs issued by a credit union are NCUA-insured.\n**7)**  **Why would I choose a CD over other types of investments?**\n--------------------------------------------------------------------\nCDs are low-risk investments that allow you to earn more than you normally would through a regular savings account.\n**8)**  **Why should I think twice about putting my money into CDs?**\n---------------------------------------------------------------------\nCDs are low-_return_ investments that may barely earn enough to keep up with inflation.\n**9)**  **What is a CD ladder?**\n--------------------------------\nBuilding a CD ladder means investing in a number of CDs with varied term lengths, ranging from 1 to 5 years, for example. This way you can take advantage of higher interest on a 5-year-term CD while spreading the rest of your investment over shorter terms. In this way, you always have money coming available to you, either for cashing out or reinvesting into a longer-term CD.\n**10)**  **How do I open a CD account?**\n----------------------------------------\nYou may go through your current bank or credit union, but it’s a good idea to shop around, compare rates, and read the fine print. Be sure to include local banks and online banks in the mix. You may also go through a “deposit broker,” but they will still be opening the CD account with a financial institution.\n**11)**  **Is it a good idea to open a CD account through a deposit broker?**\n-----------------------------------------------------------------------------\nDeposit brokers are brokerage firms or independent salespeople who open CD accounts on your behalf. You may find that these options offer higher interest CDs, but it may also be more costly, for example, to close your CD account early, as you may lose part of your principal.\nBefore going with a deposit broker, ask for and read carefully the terms of the agreement and, most importantly, compare it to others offered directly through a bank or credit union.\n**12)**  **Where can I go to compare CD interest rates?**\n---------------------------------------------------------\nThere are a number of online websites where you can compare the best CD interest rates on any given day, like Bankrate and NerdWallet.\n**13)**  **What do I need to be looking at when shopping around for a CD?**\n---------------------------------------------------------------------------\nBefore you sign on the dotted line, do your homework. That means comparing CD options across multiple banks and\/or credit unions. Be sure to look at:\n*   Disclosure statements\n*   Interest rates\n*   Term lengths (make sure you see the maturity date in writing)\n*   Early withdrawal penalties\n*   How you’re paid interest\n*   How _often_ you’re paid interest\n**14)  Should I always choose the highest interest CD option?**\n---------------------------------------------------------------\nNot necessarily. The CDs with the highest yields are typically those with the longest terms. Unless you are certain you will not need access to that cash until the CD has reached maturity (i.e., the length of the term), go with a lower-interest, shorter term option.\n**15)**  **Why do CDs pay higher interest rates than regular savings accounts?**\n--------------------------------------------------------------------------------\nBanks and credit unions pay higher returns on CDs because you are guaranteeing them use of your money for a guaranteed period of time. Savings accounts offer these institutions no such guarantee.\n**16)**  **How often is a CD’s interest compounded?**\n-----------------------------------------------------\nInterest on your CD may be compounded daily, monthly, quarterly, or yearly depending on the bank or credit union.\n**17)**  **What happens to my CD once it reaches maturity?**\n------------------------------------------------------------\nYou may have the CD renewed for the same term length, open a new CD under new terms, or cash it out. Just be sure to make your decision before the renewal date. Otherwise, the CD may be automatically renewed for you. END
 TITLE: Save for Retirement or Pay Off Loans CONTENT: Save For Retirement or Pay Off Loans — Which is Better for You?\n---------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\nOf all money matters, the question of saving for retirement or paying off debt is a common one, primarily because it's such a tough question to answer. In fact, it seems there is no right or wrong answer in general, only what seems like a right or wrong answer for _you_.\nReasons to Pay Off Your Loans First\n-----------------------------------\n1.  Your loans have you paying a higher percentage in interest rates than you can earn through investments. As you know, the longer you keep yourself in debt, the more you pay for it. So if the interest you can earn on investments is less than what you could save by paying off debt, it's a no-brainer. Focus on your highest-interest debt first. If much of your debt is in credit cards, you may try transferring your balance to a lower-interest credit card instead. Here at CreditInfoCenter.com, we have a number of tips on debt settlement, debt negotiation and debt consolidation.\n2.  Your employer doesn't match your 401(k). Stock options don't count. If you're not getting matched with cold-hard-cash, put the money you would otherwise invest into the 401(k) into your debt pay-off plan.\n3.  Once paid off, all of the money that previously went toward your loans can go into your retirement savings. Of course, this requires that you stick to your guns, creating and following a plan-of-action in terms of paying down your debt in a timely manner. The faster you're able to do it, the sooner you'll stop paying interest and earning it instead.\nReasons to Save for Retirement First\n------------------------------------\n1.  The sooner you start setting aside money for your retirement, the less stress you'll feel later when you realize the big day is just around the corner but you're a long way from what you need to make it happen. No matter how aggressive our saving habits, most of us underestimate how much we need to retire. What's equally disturbing, though, is that even if we do accurately predict how much we need, most of us don't have enough extra income to save that much anyway. In other words, the sooner you can start saving something, the longer it will accumulate interest, increasing exponentially over the years.\n2.  Saving for retirement affords you tax breaks that add up to a significant amount over several years time. If you wait to save for retirement, or take a break from it to focus on paying down debt, you could miss out on cumulative tax breaks too lucrative to miss.\n3.  Your employer provides a 50 percent or more match for your 401(k). If you are in the fortunate position of having an employer that contributes significantly to your 401(k), by all means, take advantage of it!\nReasons to do Both at the Same Time\n-----------------------------------\n1.  You're trying to pay off your debt first, but not aggressively enough to pay it off any time soon. The longer it takes you to pay down your debt, the more you're ultimately paying in interest. So if you're only paying a little above your minimum payments due, it's worth setting some aside for retirement too.\n2.  You're saving for retirement first, but accumulating debt for regular and\/or unforeseen living expenses. What's the point of putting money away in savings if you're only losing money on interest charged for debt needed to cover living expenses? Yes, it feels good having a chunk of change earmarked for retirement savings, but it feels even better to take part of that money and setting it aside for your regular living and\/or emergency fund.\n3.  The interest you're earning in savings is greater than the interest you're accumulating on your debt. Yes, you could take advantage of this by putting all your extra money into savings, but consider setting some aside for paying down debt at the same time, even if it's just a little more than your minimum monthly payments.\nStill not sure? Go with your gut. Which feels better — getting debt-free faster, aggressively building your nest egg, or doing a little bit of both, though more slowly, at the same time? Only you can be the judge. END
 TITLE: Save for Retirement or Pay Off Loans CONTENT:    |  |  |  | \n: . END
 TITLE: How to Set Up Your Saving Goals for Retirement CONTENT: Can You Say \"Yes\" to These Retirement Questions?\n------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\nWhether you're already saving for retirement or you haven't a clue where to begin, ask yourself these six essential questions about your retirement savings goals. In some cases it may surprise you, but every one of these questions needs a \"yes\" from you.\n### 1\\. Do you expect your annual living expenses to stay about the same?\nMost people assume their living expenses will fall in retirement. After all, when you're retired, you're no longer saving for retirement. Plus, you've likely paid off the mortgage and college for the kids. However, other expenses inevitably creep in to take their place.\n**Healthcare.** The older you get, the more health issues you are going to face. This means increased premiums, deductibles, co-pays, and prescription drug costs.\nAlso, consider that Medicare does not cover long-term care (e.g., assisted living, nursing home care), dental care, eye care related to prescription glasses, dentures, hearing aids and exams to fit them, or routine foot exams.\nPlus, there is always the possibility you could have a costly medical expense before you qualify for Medicare (at age 65), which could take a big chunk out of your retirement savings for costs not covered by health insurance. This could also mean more serious, costly complications down the road.\n**Travel.** When you think about your retirement goals, travel likely ranks close to the top of the list, if not number one. The last thing you want to do is forego trips you've waited your whole life to take, but making them happen won't come cheap.\n### 2\\. Are you planning to live to 100 years old?\nAccording to the Social Security Administration, a man who turns 65 today can expect to live, on average, until 84. A woman who turns 65 today can expect to live, on average, until 86. However, life expectancy is only going to increase going forward. So the younger you are today, the more years you should expect to add to your lifetime and, in turn, your retirement funding needs. Many experts advise projecting your life expectancy to age 100, just to be safe.\nIn the simplest of terms, let's say, when you retire, you're living on $50,000 a year. Presume you'll need the same every year you are in retirement. If you retire at 65, and live another 20 years, that means you need $1 million in retirement savings (or income). However, if you retire at 65 and live another 35 years, that means you need $1.75 million in retirement savings (or income).\n### 3\\. Are you saving 15 to 40 percent of your income?\nThe older you are when you start saving for retirement, the larger the percentage of your income you need set aside each year.\nGenerally, if you start saving in your:\n*   20s, save 15 to 20 percent of your income\n*   30's, save 25 to 30 percent of your income\n*   40's, save 35 to 40 percent of your income\n*   50's, save 45 to 50 percent of your income\nDo the math and find the percentage that works for you. Just remember to subtract from your savings goal anything you already have coming to you in social security benefits and pension.\n### 4\\. Are you investing your retirement savings?\nSocking away retirement savings into a regular savings account or money market funds won't cut it if you want to reach your retirement goals. You simply must take advantage of investment opportunities that stand to give you a decent rate of return, including:\n*   401(k) contributions\n*   Individual Retirement Accounts (IRA's)\n*   Annuities\n*   Stocks and bonds\nYour annual rate of return will depend on a variety of factors, but provided you're exhausting all of your investment options, you should safely be able to expect 5 to 6 percent.\n### 5\\. Have you considered retiring in a place with lower living expenses?\nWhile this may not be a desirable choice for everyone, it's certainly worth considering. The higher the cost of living where you are now, the more you stand to save by retiring in a city where housing, food, and other expenses cost less. See our list of the top 20 Most Affordable Places to Retire.\n### 6\\. Are you planning to work past your retirement years?\nWhile the prospect of never having to work another day in your life may sound like a dream come true, consider the benefits of the alternative. The longer you can generate income — be it through a part-time job or your own business — the longer you can preserve your retirement savings. You just may find yourself embarking on a second (or third) career that not only supports your retirement years, but enhances your overall quality of life. END
 TITLE: Information on Investing in Money Market Accounts CONTENT: 14 Things to Know About Money Market Accounts\n---------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 18, 2017_\nIf you want more than a typical savings account can offer, but don’t want to tie your money up in a CD, a money market account could be the answer. Just be sure to do your homework first, as all money market accounts are _not_ created equal, and certain terms and conditions do apply.\n1) What is a money market account?\n----------------------------------\nA money market account (MMA) — also known as a money market deposit account (MMDA) — is a type of savings account that typically offers higher interest rates than regular savings, but with special requirements and limitations.\n2) Is a money market account the same thing as a money market _fund_?\n---------------------------------------------------------------------\nNo. A money market _fund_ is a low-risk investment vehicle that is not federally insured. A money market _account_ is a risk-free savings option that _is_ federally insured.\n3) Why choose a money market account over a regular savings account?\n--------------------------------------------------------------------\nTypically, a money market account offers higher interest than a regular savings account. This is not always the case, however, so be sure to shop around for the best rate you can find.\n4) Why choose a money market account over a certificate of deposit (CD)?\n------------------------------------------------------------------------\nThough a certificate of deposit typically offers a higher interest rate than a money market account, the CD option has stricter terms. Even short-term CDs prevent you from accessing your money for months at a time (though you may do so with a penalty). Money market accounts, on the other hand, allow a certain number of withdrawals every month, penalty-free.\n5) Why should I put my money into a money market account?\n---------------------------------------------------------\nEven though a money market account typically offers higher interest than a regular savings account, the difference is not always that substantial. So if you’re looking to maximize your earning potential, and you can tolerate some risk, you may want to consider other investment options.\n6) How do I open a money market account?\n----------------------------------------\nYou can open a money market account through a bank or credit union.\n7) Are money market accounts federally insured?\n-----------------------------------------------\nYes. If you open your money market account with a bank, it is FDIC insured. If you open your money market account with a credit union, it is NCUA insured.\n8) Is there a minimum balance requirement for a money market account?\n---------------------------------------------------------------------\nOften there is a minimum balance requirement, but not always. You will likely find, though, that the higher the minimum balance required, the higher the interest rate.\n9) Can I take money out of my money market account?\n---------------------------------------------------\nThe number of withdrawals you are allowed on your money market account depends on the terms of the particular bank or credit union through which you opened your account.\n10) How much interest is earned on a money market account?\n----------------------------------------------------------\nIt varies. Interest earned is typically higher than that of a savings account, but not always.\n11) How often is interest compounded and paid on a money market account?\n------------------------------------------------------------------------\nInterest on a money market account is usually compounded daily.\n12) Can checks be written from a money market account?\n------------------------------------------------------\nIt depends on the terms. Some money market accounts allow check-writing (as well as debit card use), and some don’t.\n13) Where can I go to compare money market account options?\n-----------------------------------------------------------\nThere are a number of online websites where you can compare the best money market terms on any given day, like Bankrate and NerdWallet.\n14) What to look for when shopping for a money market account\n-------------------------------------------------------------\nIn your comparison of money market accounts, be sure to look at:\n*   Interest rate\n*   Monthly fee and how to avoid i.\n*   Minimum balance required\n*   Number of withdrawals you are allowed per month\n*   Restrictions on the amount you can withdraw at any one time\n*   Fee for excess withdrawals\n*   Number of checks you are allowed to write per month\nLearn more about other investing options, including 17 things to know about CDs. END
 TITLE: Find Unclaimed Money and Property State by State Listing CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 8, 2017_\nThere are many types of loss we experience in our lifetime. But a lost life insurance policy, forgotten bank account, safety deposit box, or land deed, are just a few of the losses one can not afford to lose. Did you know that one out of every 600 people are the beneficiaries of unclaimed life insurance policies, and they are due nearly $1 billion in unclaimed benefits? You could have money waiting for you to claim. There are a lot of websites out there claiming to be able to find this lost fortune for you — for a small fee. But, you don't need a professional service, you can do it yourself.\nTypes of Unclaimed Property and Money\n-------------------------------------\nThere are all types of ways you could be owed money that you forgot or don't know about:\n*   Utility deposits, credit balances, store refunds\n*   Un-cashed dividend, payroll or cashier's checks\n*   Stock certificates, bonds, or mutual fund accounts\n*   Life insurance policy\n*   Undistributed wages\n*   Checking and\/or savings accounts\n*   Gift certificates\n*   Traveler's checks\n*   Safe deposit boxes\n*   Royalty payments\n*   Court payments\nWhy Does Property and Money Go Unclaimed?\n-----------------------------------------\nWhy do people actually not claim money or property owed to them? Here is a list of reasons:\n*   They moved \n*   They changed job status due to layoff, retirement or reassignment\n*   Their bank account has been inactive for more than three years\n*   They may have stopped making payments on an insurance policy\n*   There are un-cashed checks older than three years\n*   They regularly throw away mail without reading it \n*   An estate was settled for a deceased relative \nState by State Directory — Where You Can Find Unclaimed Money and\/or Property\n-----------------------------------------------------------------------------\nA | B | C | D | E | F | G | H | I | J | K | L | M N | O | P | Q | R | S | T | U | V | W | X | Y | Z\n**A**\n**Alabama  \n**Unclaimed Property Information and Search\n**Alaska  \n**Unclaimed Property Information and Search\n**Arizona  \n**Unclaimed Property Information and Search\n**Arkansas  \n**Unclaimed Property Information and Search\n**C**\n**California  \n**Unclaimed Property Information and Search\n**Colorado  \n**Unclaimed Property Information and Search\n**Connecticut  \n**Unclaimed Property Information and Search\n**D**\n**Delaware  \n**Unclaimed Property Information and Search\n**F**\n**Florida  \n**Unclaimed Property Information and Search\n**G**\n**Georgia  \n**Unclaimed Property Information and Search\n**H**\n**Hawaii**  \nUnclaimed Property Information and Search\n**I**\n**Illinois  \n**Unclaimed Property Information and Search\n**Indiana  \n**Unclaimed Property Information and Search\n**Iowa  \n**Unclaimed Property Information and Search\n**K**\n**Kansas  \n**Unclaimed Property Information and Search\n**Kentucky  \n**Unclaimed Property Information and Search\n**L**\n**Louisiana  \n**Unclaimed Property Information and Search\n**M**\n**Maine  \n**Unclaimed Property Information and Search\n**Maryland  \n**Unclaimed Property Information and Search\n**Massachusetts  \n**Unclaimed Property Information and Search\n**Michigan  \n**Unclaimed Property Information and Search\n**Minnesota  \n**Unclaimed Property Information and Search\n**Mississippi  \n**Information and Unclaimed Property Search\n**Missouri  \n**Unclaimed Property Information and Search\n**Montana  \n**Unclaimed Property Information and Search\n**N**\n**Nebraska  \n**Unclaimed Property Information and Search\n**Nevada  \n**Unclaimed Property Information and Search\n**New Hampshire**  \nUnclaimed Property Information and Search\n**New Jersey  \n**Unclaimed Property Information and Search\n**New Mexico  \n**Unclaimed Property Information and Search\n**O**\n**Ohio  \n**Unclaimed Property Information and Search\n**Oklahoma  \n**Unclaimed Property Information and Search\n**Oregon  \n**Unclaimed Property Information and Search\n**P**\n**Pennsylvania  \n**Unclaimed Property Information and Search\n**R**\n**Rhode Island  \n**Unclaimed Property Information and Search\n**S**\n**South Dakota**  \nUnclaimed Property Information and Search\n**South Carolina**  \nUnclaimed Property Information and Search\n**T**\n**Tennessee**  \nUnclaimed Property Information and Search\n**Texas**  \nUnclaimed Property Information and Search\n**U**\n**Utah  \n**Unclaimed Property Information and Search\n**V**\n**Vermont  \n**Unclaimed Property Information and Search\n**Virginia  \n**Unclaimed Property Information and Search\n**W**\n**Washington State  \n**Unclaimed Property Information and Search\n**West Virginia  \n**Unclaimed Property Information and Search\n**Wisconsin  \n**Unclaimed Property Information and Search\n**Wyoming  \n**Unclaimed Property Information and Search END
 TITLE: Plan Now For an Early Retirement and Retire Early CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 8, 2017_\nThe mere idea of an early retirement may be pure fantasy for many Americans. Recent surveys suggest a good many of us are convinced we will never be able to retire early — if at all. That is not a very reassuring thought if you are just starting your career, family, and adult life.\nIn the simplest of terms, you can retire as soon as you have enough money saved to live on for the rest of your life. Determine your life expectancy based on your family history and personal health. Then multiply the number of years you expect to live in retirement by the annual amount of money you are personally responsible for covering. Obviously, there is no way of knowing with certainty how many years you will live but, in this day-and-age, it is probably a safe bet to plan for 85 to 90 years, or more.\nHow is a Plan For Retiring Early Different From Retiring at 65?\n---------------------------------------------------------------\nThe only difference between retiring early and retiring at 65 is the amount of money you need to make it happen. Of course, this implies two key imperatives:\n1.  You start saving sooner\n2.  You start saving more\nHow Soon Should You Start Saving For Retirement?\n------------------------------------------------\nThose who retire early typically start saving at 25, as opposed to 30. That said, anything is possible. No matter when you start saving for retirement, you can retire early if you have the determination, discipline, and aggressive savings plan to back it up.\n### How Much Money Will You Need to Retire Early?\nAs is the case at any age, how much you need for retirement depends on how much your annual expenses are now, and how much you expect that to change by the time you reach your retirement years.\n### What Expenses May Drop Off During Retirement Years?\nThough the list varies for everyone, you may expect to lose expenses like mortgage payments, college tuition, student loans, and (dare I say it?) credit card debt.\n### What Expenses May Appear During Retirement Years?\nAgain, this list is dependent on individual choices and circumstances - from housing to travel - but you can be certain health care will play a prominent role.\n### How Often Should You Assess Your Retirement Investments?\nIt's a good rule of thumb to assess your retirement investments every 6 to 12 months to see where may want to pull back, and where it may be worth the risk to get more aggressive.\n### Is It Smarter to Pay More on My Mortgage or Put Some More Money Into a Retirement Savings?\nThough paying off your home is certainly something to aspire to, never do so at the expense of your retirement savings plan. In fact, in the long run, you'll come out one-to-eight percent ahead putting a hundred more dollars toward your retirement savings as opposed to your mortgage.\n### Do You Need to Have All of Your Retirement Money \"In-Hand\" on the Day of Retirement?\nTheoretically, you should have all of your retirement money saved by the big day. However, this does not apply to money you have in the stock market. In other words, don't panic and sell in a volatile market because you're afraid you're going to lose it all. As long as you don't need that money in the next 10 to 15 years, ride it out. Of course, this implies the necessity of having your the majority of your retirement funds in \"safe\" investments, like IRA's and annuities. END
 TITLE: What to Know About Investing in Mutual Funds CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: August 18, 2017_\nThough they’re the most popular investment vehicle among small investors, mutual funds should not be entered into blindly or lightly. Get the basics down first.\n1) What are mutual funds?\n-------------------------\nMutual funds allow multiple small investors — or shareholders — to pool their money for investing in stocks, bonds, and other securities.\n2) Why choose a mutual fund over other investment options?\n----------------------------------------------------------\nYou don’t need a lot of money to invest in mutual funds. Minimum requirements vary, but typically range between a few hundred to a few thousand dollars. Mutual funds also offer a simple way to diversify your investment portfolio, and you can buy and sell your shares with relative ease.\n3) Why should I think about a mutual fund?\n------------------------------------------\nUnlike investments in individual securities, a mutual fund gives you no control over your portfolio. You also have to pay capital gains taxes on distributions, even if the fund’s share price has fallen. Plus, fund fees can eat away at returns.\n4) What do I need to consider when looking for a mutual fund?\n-------------------------------------------------------------\n**_Fund Category._**  Your choice will depend on your goals. Options are numerous, but some of the most common mutual fund options include:\n*   Bond funds\n*   General equity (stock) funds\n*   Balanced funds (stocks and bonds)\n*   Global\/international funds\n*   Sector funds, representing investments in one sector of the economy\n*   Index funds, replicating the components of a particular market index\n**_Risk._**  Is your tolerance high or do you need to be more conservative?\n**_Turnover._**  What percentage of the fund’s holding has changed over the past year. The lower the turnover, the better.\n**_Fees._**  You’ll have to pay standard fund management fees (be sure to look at the fund’s “expense ratio”), but “load fees” can be avoided.\n**_Taxes._**  Expect to pay them on capital gains distributions. One way to minimize them is to find out when distributions are made and time your investment after the fact so that you aren’t hit with tax bill right off the bat.\n**_Time Horizon._**  Are you in it for the long haul? If so, you may want to invest in a more volatile, and potentially more lucrative, long-term capital appreciation fund.\n**_Past Performance._**  Look at whether it has been consistent with market returns and whether there have been significant fluctuations in performance over the course of a year. Also, consider that you won’t get as comprehensive a picture of a newer fund as you will one that’s been around a while. And be sure to ask about any operational changes of late, such as a new fund manager or strategy.\n**_Prospectus and Shareholder Reports._**  Read them. Period.\n5) How is an index fund different from other mutual funds?\n----------------------------------------------------------\nIndex funds replicate the components of a particular market index, such as Standard and Poor’s 500 index. Other mutual funds are run by a fund manager whose job it is to implement the fund’s strategy and make trading decisions accordingly.\n6) What is a prospectus?\n------------------------\nA prospectus is a document that outlines the goals, strategies, past performance, managers, and other details of the fund. This is an essential tool for comparing the pros and cons of various mutual funds. Do not make a decision without it.\n7) Is there a minimum required investment in a mutual fund?\n-----------------------------------------------------------\nThe minimum required to invest varies, but typically ranges from $500 to $3,000.\n8) What are the fees for investing in a mutual fund?\n----------------------------------------------------\nMutual funds make money off of fees paid by investors. However, fee types and amounts vary across mutual funds, so choose wisely.\nSome mutual funds include load fees, or sale charges, tied to your purchase or selling off of your shares. These may be front-end load fees (paid at the time of your investment) or back-end load fees (paid when you sell your shares). While the law allows funds to charge load fees as high as 8.5 percent, most range from 3 to 6 percent.\nFortunately, not all mutual funds have load fees. Instead, they make money off of management, administration, and other types of fees.\nIdeally, you want to choose a mutual fund with no load fees.\n9) How do I find and invest in a mutual fund?\n---------------------------------------------\nYou can invest in mutual funds directly through fund companies, such as The Vanguard Group and Fidelity Investments. You may also go through a discount broker.\nLearn more about Money Market Accounts. END
 TITLE: Is Investing in Gold a Good Idea? CONTENT: Is Investing in Gold Good for Your Portfolio?\n---------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 18, 2017_\nNo investment has shined as brightly as gold over the last fifteen years. If you had invested $10,000 in gold bullion back in January of 2001, your 37 ounces would be worth almost $45,000, as of the day of this writing. But, when the economy is good, gold prices tend to drop, as evident during the economic boom of the 80's and 90's. But as soon as the world market began to take nose dive, gold prices started to soar and experts believe the price of gold will continue to climb in the coming years.\nUnlike other investments, you cannot expect gold to earn you monetary dividends. However, many think of buying gold as an insurance policy, of sorts, providing a safe place to store your wealth and hedge against inflation, as it is a commodity that is almost certain to continue to be in high demand in the future.\nWhat Determines the Value of Gold\n---------------------------------\nGold is a volatile commodity and its value tends to go through long stretches of highs and lows; years at a time, in fact. In addition to the impact of supply and demand, the value of gold is also impacted by the cost of production. And, in recent years, mining costs have been on the rise, thus raising the price of gold. Some of this evidently has to do with new environmental regulations requiring safer, and presumably more expensive, mining practices. \nBesides the obvious factors of supply and demand and mining costs, the economy also affects the price of gold. The value of gold tends to move in the opposite direction of stock prices. When the stock market was at its all time high in the 80's and 90's, gold was $300 to $500 an ounce. Now, an ounce of gold costs about $1,274 an ounce (as of the date of this writing).\nWill Your Money Will Be Safe if the Dollar Loses Value?\n-------------------------------------------------------\nOne of the greatest arguments for gold investments these days comes from the camp of people who believe it is the only way to protect your wealth if world currencies lose their value. What this implies is the assumption that the world would subsequently start trading in gold instead of currency. However, most governments with large supplies of gold don't necessarily have much power. On the flip side, the most powerful governments aren't necessarily gold-rich nations.\nWhat Percentage of an Investment Portfolio Should Be in Gold?\n-------------------------------------------------------------\nGold is a good portfolio diversifier because its price tends to move in the opposite direction of stock prices, and often against bond prices, too. Gold does not produce income and it really offers more of a psychological value to investors. Having gold in your portfolio gives one a downside protection if the stock market crashes.\nYou should limit investments in any one sector to 20 percent. If you are an aggressive investor, you may opt for the full 20 percent in gold. On the conservative side, though, shoot for no more than 5 to 10 percent.\nHow to Buy Gold\n---------------\nThe best choice to buy gold varies from person to person and depends on the amount of money you have to invest, your investment objectives, the amount of risk you can absorb, and the length of time you intend to hold on to your gold. Having said that, here are the four ways to invest in gold:\n1.  **Buying Gold Bullion.** Though it can certainly be satisfying to be in possession of gold bars 7 inches long, weighing over 27 pounds a piece, storage can be an issue. For someone just getting into gold, buying gold coins or gold jewelry is a great way to start and it is much easier to store than a load of gold bars.\n2.  **Buying Gold Futures.** Those willing to absorb a bit more risk may decide to invest with gold futures. However, it is important to note that it isn't so much \"investing\" and it is \"speculating.\" As explained by Bankrate.com, \"A futures contract is an agreement to buy or sell a set amount of a specific commodity at a stated price on a specified future date. Futures contracts can be bought and sold on exchanges.\"\n3.  **Buying Gold Stocks.** Purchase your gold shares in a publicly traded company that is involved in gold mining and related enterprises. This appears to be the least attractive of your options, as the price of their stock is subject to fluctuations in that specific company's business practices and production costs. As explained by Canadian entrepreneur and author Kevin O'Leary, \"There is no reason to own the miners. If your cost to actually mine an actual ounce keeps going up, why would I ever buy the stock?\"\n4.  **Buying Gold Exchange-Traded Funds (ETF's).** According to Bankrate.com, this is \"the easiest way to buy into gold fever.\" However, it is one to enter into with caution, \"as investors around the world use gold ETFs to hedge their investments or speculate on gold prices, and the ETFs themselves can be more volatile than might be expected.\"\nBottom line, gold is by no means a must-have, but its representation of 5 percent of your portfolio seems a safe bet (i.e., it can't hurt). END
 TITLE: Is Investing in Gold a Good Idea? CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Retirement Savings Gap Between Women and Men CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\nIt is hard enough to save for retirement in today's struggling economy but add to that the challenge of the sexes and now we have a full blown crisis. While both men and women face retirement savings challenges, the hurdle is even higher for women. Learn why there is a retirement savings gap between men and women and how to overcome these obstacles if you are a woman.\nSalary Gap\n----------\nAccording to a recent study, in 2015 women earned 83 percent of what men earned — based on median hourly earnings of both full- and part-time U.S. workers. But for adults ages 25 to 34, the 2015 wage gap is smaller. Women in this group earned 90 cents for every dollar a man in the same age group earned. So it is no wonder women have a harder time saving for retirement — they have less salary each month.\nWith the exception of social workers, the top 10 jobs with the smallest wage gaps had median weekly earnings below the overall median for both male and female workers — $791 per week. Male social workers had weekly earnings of $892, while the median weekly earnings for the profession as a whole were $844.\nWhile women complete college and graduate school at higher rates than men; they earned 47 percent of all law degrees in 2011 and 47 percent of all medical degrees in 2014, this has helped shrink the salary gap but it is not enough to close it. A recent survey on salaries showed a male surgeon earns 37.76 percent more per week than his female counterpart. In real terms, this means a female surgeon earns $756 less per week, which adds up to nearly $40,000 over a year.\nIn the area of lower paying jobs, women are 94.6 percent of all secretaries and administrative assistants. \nWoman Need More Retirement Savings\n----------------------------------\nHere are a few \"fun\" facts: 1) Out of the top 49 oldest people alive today, only 2 are men. 2) A woman born today can expect to live 79.8 years - five years longer than a man. On average, women live longer than men which means women will need their retirement money to last longer.\nTherefore, adding to the wide gap of salary differences, is the differences in life expectancy and health care costs for men and women in their retirement years. Financial Fitness, which provides financial education programs to more than 600 organizations, examined median income, retirement savings, life expectancy, 401(k) salary deferral rates, and projected health-care costs for a woman and a man, each 45 years old. They wanted to find out how much each person would need in order to retire at 65 and live on 70 percent of his or her pre-retirement income. What emerged was that a man would need to save an additional $277,000 and a woman would need $522,000. Why? Because women have lower social security benefits, longer life expectancy and lower retirement savings in general due to lower-paying jobs. \nWomen Need to Start Saving Early\n--------------------------------\nIf you are a woman reading this article, you now know you may outlive your husband and you are probably earning much less in the way of a salary than him. This means you are going to need more in the way of retirement savings to live out your golden years in comfort and you are going to have to work harder to get there.\nThere are many ways to combat the gender wage gap and a lot of companies are enacting policies that will help women balance work and family commitments - such as paid sick days, paid family leave, equal pay protections, and pay transparency practices. Women are also pursuing advanced degrees at the same or slightly higher levels than men.\nHaving said all of this, it is imperative women start saving for retirement early in their careers and concentrate on putting a bigger portion of their salary into a retirement savings account. Check to see if your employer offers a 401(k) match and if so, put in the maximum amount so you meet that 100 percent match. You can also start putting money in IRA's, gold, or the stock market. The sooner you start to utilize these savings options, the more money you can realize over the years. Don't sit back and rely on your spouse's retirement savings because if you live longer than him it may not last long enough for you. END
 TITLE: Retiring Alone Means Different Savings Strategies CONTENT: Saving for Retirement If You Are Retiring Alone\n-----------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\nHere is a staggering statistic we found in a 2014 Gallup Poll — 64 percent of 18 to 29-year-olds report being single and living alone. Gallup also found the percentage of young adults not in a committed relationship has jumped from 52 percent a decade earlier. In light of this growing trend, we found it odd that there is not a lot of information out there addressing the different retirement savings needs of a single person. Single, unmarried people planning for retirement face a lot of different challenges compared to a typical married couple. If you are single, and plan to stay that way, you need to read this article so you can plan for your retirement accordingly.\nLife Insurance and Long-Term Care Insurance\n-------------------------------------------\nThis is probably not in the fore front of your planning, but it is something that is going to be very important to you once you hit your golden years — life insurance and long-term care insurance. Living alone, with or without the support of extended family members, means you are completely independent of any help from a spouse or partner. If you get sick and can not work, there is no one in your household to pick up the slack so you need to make sure you have an outside source of supplemental income. Furthermore, if you become so ill that you can not live on your own, you need a way to pay for long-term care.\nThe biggest struggle for a single person is the cost of these types of insurance and trying to fit this expense into your budget. On the whole, a single person's income is very limited and it might be hard to find the extra money to pay for life and\/or long-term insurance. The upside of insurance is if you start it when you are young, the premiums are lower and usually you can lock yourself into this amount. You can also start off with a bare minimum policy and increase the coverage as you get older and are making more money. We suggest you find a good financial planner and schedule meetings with him or her every few years to re-evaluate your insurance coverages and needs.\nContribute to Tax-Deferred Accounts\n-----------------------------------\nTalk to any good financial planner, and he or she will tell you single people need to make sure they save a greater amount to their tax-deferred accounts and to start early. Reason being, they need to build a larger emergency savings account than that of a two-person income household. They do not have anyone to lean on should they lose their job. If you are single, and are lucky enough to work at a place that offers a 401(k) matching program, join it and contribute the maximum amount that will be matched. This is a great way to increase your savings and lower your taxable income. Make sure you can take this 401(k) with you if you ever have to leave this employer and make sure you can roll it into another account. \nIf we can offer one piece of advice, try not to dip into this account prior to your retirement. When you turn 65, you will be glad your account is still in tack and you will really be happy with the nice nest egg you have saved up.\nHousing and Cost of Living Expenses\n-----------------------------------\nThe biggest expense for most people is housing, and single people still have to pay rent and mortgage bills on a residence that could house two. Fact is, married people in their late 20's spend about $7,200 less per person. That means a single person has much less left over to put into their savings accounts. \nThe up side to living alone is the fact that a single person can save or spend their money on whatever they want and they don't have to ask for any input. The down side is, whether or not a single person is a spender or a saver, having a lack of \"dependents\" makes the over all savings plan very different from singles to married couples. Case in point is life insurance. Why have life insurance if there is no one to pass it on to? But, as for long-term care insurance, without a spouse to help out in the case of declining health, this is a very important option to have if you are single.\nAnother factor is Social Security. A married, divorced or widowed retiree can opt to get benefits based on a current or former partner's lifetime earning record, which may allow for a higher Social Security payment. Those who are not married can only receive benefits based on their income record. This means they will need more planning on when to retire and when to start taking Social Security benefits.\nSaving Plan Based on Self-Reliance\n----------------------------------\nResearch confirms that a single person tends to save less for retirement than a married couple. This makes perfect sense since a single person is already at a disadvantage with only one income. With only one income, all expenses and investments must be funded from that one source making it more difficult to compound and grow a retirement savings account.\nBut, it can be done if you start saving early and if you are willing to cut out some expenses to save more money each month. A single person has to really budget their money and stick to a budget so they have money to put aside into a savings\/retirement plan or pay for life and\/or long-term insurance. The more planning done when you are young, the better off you will be in your golden years. \nLiving as a single person does not have to be a bad thing, and many singles live a more happy fullfilling life. Just make sure to think far enough ahead and plan for the unexpected because being single means being self-reliant. And being self-reliant can be a powerful thing. END
 TITLE: Can You Afford to Retire Abroad CONTENT: Retiring Abroad on the Cheap? Money Matters to Consider First\n-------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\nIf you want to stretch your retirement dollars, there are plenty of places to retire abroad on the cheap. But before you have your heart set on it, do your homework first. One or more of the following factors could change your mind.\nExamine Your Current Cost of Living\n-----------------------------------\nWhen you start looking into affordable retirement destinations overseas, don’t bet the bank on cost of living estimations. Certainly, they’re a good way to narrow down your search, but _your_ cost of living could vary depending on your personal preferences and expectations.\nYour best bet? Before blindly deciding on a retirement spot, spend a good chunk of time there to get an idea of just how much _you_ will likely spend to maintain the lifestyle you want, in terms of housing, food, entertainment, and other cost of living expenses.\n**How Much Do You Have in Savings and\/or Retirement Income**\n------------------------------------------------------------\nIn order to acquire a retirement visa, most countries require proof of retirement savings and\/or retirement income. Look into the specific requirements of your destination country.\n### **Healthcare Needs**\nMedicare won’t cover healthcare abroad, which is not to say you shouldn’t keep it.\nWhile you will want to find an alternative for basic medical needs within your new home country, you can always return back to the U.S. and use your Medicare for major procedures.\nAs for basic medical coverage you can use in your destination country, look into the public healthcare system. Will they allow you to pay into the system for healthcare access? Or is healthcare so cheap there that you can afford to pay everything out of pocket?\n### **Taxes Required to Federal Agencies**\nNo matter where you retire, as long as you are a U.S. citizen, you’re required to file federal income taxes. This includes any income you earn from work in your retirement years, as well as income made off of investments.\n### **Travel to and From the U.S.**\nHow often will you want to visit family and friends back in the States?\nLook into the cost of round-trip flights and do the math on what it will cost you to travel back and forth. And remember to factor in hotel accommodations (if applicable), as well as the cost of food and entertainment while you’re here.\nLooking to retire on the cheap without leaving the States? Check out our top 20 list of the most affordable places to retire in the U.S. END
 TITLE: College Grads Today Retiring Later in Life CONTENT: Today's College Grads May Not Be Able to Retire at 65\n-----------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\nRemember when you were growing up, your grandparents or maybe even your parents retired at the age of 65 and they had a nice monthly retirement income to live off of during their golden years. Well, that stress free retirement living has pretty much come to an end as our country is seeing more and more pensions and retirement accounts depleted by bad investment choices and a poor economy. Add to that the overwhelming debt being accrued by the average person, and you have a recipe for pushing the retirement age well into the 70's. The college graduates of today will most likely not be able to retire until they are well over 70 years of age due to the fact they will not be able to afford to retire at 65. Let's explore why this is happening and what you can do about it now so you can retire at 65 and not 75.\nStudent Loan Debt\n-----------------\nA recent study by Student Loan Hero revealed a very dismal financial outlook for today's average college graduate. The class of 2016 graduated with $37,172 in student debt on average, which is not really ideal conditions for starting to sock away money into a retirement fund. It all translates to about $125,000 less in your retirement fund by the time they reach the typical retirement age of 65. But how does $37,000 of college debt turn into $125,000 later? In party due to interest on the loan and opportunity cost of future savings.\n\"\\[A\\]lthough the median college graduate leaves with a seemingly manageable $37,000 debt load, 7 percent of a student's earnings go toward yearly loan payments of $3,200 for the first ten years of his or her career,\" writes NerdWallet analyst Joseph Egoian. \"This prevents any meaningful contributions toward retirement.\"\nNow, if that $37,000 was put into a plain-vanilla retirement account averaging a 5 percent annual return for 30 years, it would become almost $160,000. But it won't, and as a result, the typical debt-laden graduate won't be well situated to retire until he or she is 75, 10 years later than the current average age of retirement.\nOut Living Your Money\n---------------------\nLater retirements seem somewhat inevitable as we are living longer, which means you need more money saved for retirement. In the 80's, a lot of companies moved from traditional pension plans to 401(k) savings plans. The thinking was these accounts would grow so big that making money to last well into retirement would be fairly simple. But, it did not work out that way. The economic crash of 2008 depleted most 401(k) accounts, which meant the money that would have been there to live on, was now gone. The guaranteed lifetime income, once a staple of old age for many American, has now become an elusive grail.\nOne way to combat the poor performance of 401(k)'s, is to convert your savings into a fixed annuity. While 84 percent of Americans say lifetime income is important, only 14 percent have bought an annuity. Annuities come in many varieties so make sure to check the fees before you buy into one.\nThe best thing for recent college grads to do is to not get too far into debt with college tuition. Try going to a cheaper community college first, then transfer to a 4-year school. Also, working while going to school can help lessen the need to borrow more and more money to get through school. With less debt after graduation, you can put money into a retirement account so you won't be working after your turn 65 years old. Doesn't that sound better than working well into your 70's? We think so! END
 TITLE: College Grads Today Retiring Later in Life CONTENT:    |  |  |  | \n: . END
 TITLE: Affordable Cities to Retire to 2013 CONTENT: Most Affordable Places to Retire — Best Retirement Cities\n---------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\nWhether you're at, near, or just thinking about retirement, take a moment to browse through the following list of cities found to be the best places to retire in 2017, as listed by Forbes Magazine. There are a number of factors to consider when it comes to retirement and housing and cost of living are top on the list. Each city listed below has that information along with pros and cons of retiring in this city. Everyone has different needs so there is more to choosing a retirement city than financial considerations.\n1\\. Bethleham, Pennsylvania\n*   **Population:** 75,000\n*   **Median House Price:** $152,000\n*   **PROS:** Cost of living 6% below national average, highly walkable, and good air quality.\n*   **CONS:** Cold winters\n*   **Population:** 32,000\n*   **Median House Price:**  $157,000\n*   **PROS:** Good economy, cost of living 4% below national average. Good climate.\n*   **CONS:** Not very walkable and lackluster air quality.\n*   **Population:**  120,000\n*   **Median House Price:**  $161,000\n*   **PROS:** Good economy, cost of living 8% below national average, low serious crime. Good walkability and warm climate.\n*   **CONS:** None\n*   **Population:**  28,000\n*   **Median House Price:**  $160,000\n*   **PROS:** Cost of living 13% below national average, good economy, low crime, good air quality, warm climate.\n*   **CONS:** Not very walkable.\n5\\. Harrisonburg, Virginia\n*   **Population:**  53,000\n*   **Median House Price:**  $162,000\n*   **PROS:** Good air quality, low crime rate, cost of living 4% below national average.\n*   **CONS:** So-so ecomony, brisk winters.\n6\\. Clemson, South Carolina\n*   **Population:**  15,000\n*   **Median House Price:**  $129,000\n*   **PROS:** Good economy, good state tax, low crime, good air quality, warm weather, and very walkable.\n*   **CONS:** Cost of living at national average.\n7\\. Brevard, North Carolina\n*   **Population:**  8,000\n*   **Median House Price:**  $198,000\n*   **PROS:** Good economy, cost of living at national average, good climate, low crime, good air quality.\n*   **CONS:** Not very walkable.\n*   **Population:**  205,000\n*   **Median House Price:**  $206,000\n*   **PROS:** Strong economy, cost of living 3% below national average, low crime, good air quality, and good weather.\n*   **CONS:** Not very walkable.\n*   **Population:**  30,000\n*   **Median House Price:**  $215,000\n*   **PROS:** Good weather, low crime, good air quality.\n*   **CONS:** Not very walkable and cost of living is 2% above national average.\n10\\. Colorado Springs, Colorado\n*   **Population:**  455,000\n*   **Median House Price:**  $242,000\n*   **PROS:** Good economy, very bikeable, and good air quality.\n*   **CONS:** Cost of living 5% above national average, not very walkable and weather is very cold in the winter.\n11\\. Jefferson City, Missouri\n*   **Population:**  43,000\n*   **Median House Price:**  $138,000\n*   **PROS:** Strong economy, cost of living 10% below national average, and good biking. \n*   **CONS:** Extreme weather and not very walkable.\n*   **Population:**  75,000\n*   **Median House Price:**  $183,000\n*   **PROS:** Cost of living at national average, low crime, good air quality, and strong economy.\n*   **CONS:** Cold winters.\n*   **Population:**  120,000\n*   **Median House Price:**  $192,000\n*   **PROS:** Top-ranked economy, good air quality, somewhat walkable, and high ranking volunteering culture.\n*   **CONS:** Cold winters, cost of living 2% above national average.\n*   **Population:**  185,000\n*   **Median House Price:**  $171,000\n*   **PROS:** Booming economy, cost of living 3% below national average, good air quality, warm climate, and low serious crime. \n*   **CONS:** Not very walkable.\n*   **Population:**  94,000\n*   **Median House Price:**  $172,000\n*   **PROS:** Strong economy, cost of living 4% below national average, low crime, and good air quality.\n*   **CONS:** Cold winters.\n*   **Population:**  36,000\n*   **Median House Price:**  $179,000\n*   **PROS:** Cost of living 5% below national average, low crime, good air quality. \n*   **CONS:** Cold winters, poor state tax.\n*   **Population:**  277,000\n*   **Median House Price:**  $156,000\n*   **PROS:** Decent economy, cost of living 8% below average, low crime, great air quality.\n*   **CONS:** Poor state tax climate for retirees and severe weather extremes.\n*   **Population:**  12,000\n*   **Median House Price:**  $215,000\n*   **PROS: G**ood air quality, low crime, mild climate, very bikeable.\n*   **CONS:** Cost of living 5% above national average.\n19\\. Ocean Pines, Maryland\n*   **Population:**  10,000\n*   **Median House Price:**  $126,000\n*   **PROS:** Cost of living 8% below average, good weather and air quality, and very walkable.\n*   **CONS:** So-so economy, average serious crime rate and fair state tax climate for retirees.\n*   **Population:**  167,000\n*   **Median House Price:**  $240,000\n*   **PROS:** Low serious crime, good economy.\n*   **CONS:** Cost of living 9% above national average, hot climate. END
 TITLE: Affordable Cities to Retire to 2013 CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Get the Basics on Investing in Cryptocurrency CONTENT: Bitcoin and Beyond: The Basics of Cryptocurrency\n------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 7, 2017_\nIf you’re looking for investment ideas, cryptocurrency might be looking pretty good right now. On August 27, 2017, the total market capitalization of cryptocurrencies reached $158.5 billion, an increase of 795 percent for the year. What doesn’t look so good is jumping into an investment before you understand it. At least get the basics down first.\n**How cryptocurrency works**\n----------------------------\nCryptocurrency is a decentralized digital currency, with no single governing body issuing it or regulating the market. There are hundreds of cryptocurrencies in circulation, which can be acquired in a few different ways:\n*   They can be bought through an exchange\n*   They can be paid to you by an employer\n*   They can be _mined_\nMining is done by participating in the processing of cryptocurrency transactions. A good explanation comes from The Economist in its description of mining Bitcoin:\n\"Every ten minutes or so mining computers collect a few hundred pending bitcoin transactions (a ‘block’) and turn them into a mathematical puzzle. The first miner to find the solution announces it to others on the network. The other miners then check whether the sender of the funds has the right to spend the money, and whether the solution to the puzzle is correct. If enough of them grant their approval, the block is cryptographically added to the ledger and the miners move on to the next set of transactions (hence the term ‘blockchain’).\"\nIt is this _mining_ activity that earns you cryptocurrency. (Though not all cryptocurrency can be mined.)\nOnce it is in your possession, you can hold on to your cryptocurrency in hopes of it rising in value. You can sell your cryptocurrency. Or you can spend it in places that accept cryptocurrency as payment.\n**How to trade cryptocurrency**\n-------------------------------\nYou buy and sell cryptocurrency through an exchange. To get started, you will need to sign up for an account, verify it, and add your preferred payment methods. One of the most popular exchanges is Coinbase. But there are many other trusted exchanges, Bitstamp, Gemini, and Kraken among them.\n**When to buy (and sell) cryptocurrency**\n-----------------------------------------\nThough cryptocurrency is not a stock, some conventional stock advice does apply — buy low, sell high. Also, consider the advice of Credit Info Center owner Jared Ericksen who trades on Coinbase:\n\"Buy and hold until you absolutely need to withdraw the money. I have played around with trying to guess the valleys and peaks. I have also just bought and held and the latter has performed much better.\"\nBut make no mistake about it — there is nothing safe or predictable about cryptocurrency. \"I would classify it as a risky investment for sure,\" says Ericksen. \"Only invest money that you can afford to lose.\"\n**Buy and sell limits**\n-----------------------\nThough cryptocurrency is not regulated by any single governing body, the exchanges do have their own internal rules, buy and sell limits among them. Take Coinbase, for example, the most popular cryptocurrency exchange.\nAs stated on the Coinbase website, \"Your account has a weekly limit for buying and selling as well as separate credit \/ debit card limits, applicable to certain payment methods.\"\nThese limits can increase relative to 1) how long you’ve had your Coinbase account, 2) your buying history and activity, and 3) account verification.\n**What cryptocurrency to invest in**\n------------------------------------\nThere are hundreds of cryptocurrencies out there, so deciding on one can feel a little overwhelming. On the other hand, your options may be very limited depending on which cryptocurrency exchange you use. For instance, Coinbase only trades in Bitcoin, Ethereum, and Litecoin.\n**Where to spend cryptocurrency**\n---------------------------------\nIf you want to spend your cryptocurrency on goods or services, you can use Bitcoin through a few name brand sources, including Overstock, Expedia, Shopify, DISH Network, Microsoft, Intuit, and Paypal.\n**How cryptocurrency is taxed**\n-------------------------------\nDespite its name, cryptocurrency is not considered _currency_ by the IRS. It is instead considered property, meaning cryptocurrency is subject to capital gains taxes. Federal income taxes may also apply. Specifically, the IRS website states that:\n*   Wages paid to employees using virtual currency are taxable to the employee, must be reported by an employer on a Form W-2, and are subject to federal income tax withholding and payroll taxes.\n*   Payments using virtual currency made to independent contractors and other service providers are taxable and self-employment tax rules generally apply. Normally, payers must issue Form 1099.\n*   The character of gain or loss from the sale or exchange of virtual currency depends on whether the virtual currency is a capital asset in the hands of the taxpayer.\n*   A payment made using virtual currency is subject to information reporting to the same extent as any other payment made in property.\n**Who created cryptocurrency**\n------------------------------\nBitcoin was the first cryptocurrency, created in 2009 by an inventor who goes by the pseudonym, Satoshi Nakamoto. However, the system that cryptocurrency is based on was used during World War II, when _cryptography_ was used to encrypt communications.\n### **When to think twice**\nBefore jumping into the cryptocurrency market, ask yourself these questions first:\n1) Do you already have traditional investments for your retirement?\n2) Have you paid off all outstanding credit card debt?\n3) Have you saved the money you need for your financial goals? College, a car, a home?\n4) Is the money you would invest in cryptocurrency money you can afford to lose?\nIf you can answer yes to all of these questions, go for it. If not, think twice. Instead of making a risky investment, why not use the money to accomplish things you _know_ to be within your reach? END
 TITLE: Manage Your Retirement Savings With 401(k), IRA and Roth IRA CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\nWhether you've been saving for retirement for years, or you've yet to save a dime, it's a good idea to review the basics. This is a good place to start, providing a general overview of the smartest, safest ways to make the most of your retirement savings.\nHow Much Income Should be Set Aside Into a Retirement Savings?\n--------------------------------------------------------------\nDo the math. Determine your life expectancy based on your family history and personal health. Then multiply the number of years you expect to live in retirement by the annual amount of money you are personally responsible for covering. Obviously, there is no way of knowing with certainty how many years you will live but, in this day-and-age, it is probably a safe bet to plan for 85 to 90 years, or more.\nThough conventional wisdom holds you will need less to live on per year in retirement than you do now, the truth is most people underestimate how much they really need. (Yes, some expenses fall off, but others rear their ugly heads.) To be on the safe side, assume you will need as much income per year as you need now.\nSo, after deducting income you expect to receive via social security and, if you are so lucky, your pension, divide how much you personally need to contribute to your retirement by the number of years you have left to get there. This will tell you how much you need to save per year between now and then.\nWhere Should I Invest My Retirement Savings?\n--------------------------------------------\nThe wisest investments for your retirement savings include 401(k) plans and IRA's.\n### What is a 401(k) Savings Account?\nA 401(k) is a retirement savings plan offered by employers to their employees.\n### What is a Deferred 401(k)?\nA traditional deferred 401(k) allows you to deposit income into the savings plan without paying taxes on it. Instead, these taxes are deferred, meaning you pay them later, on the date of withdrawal.\n### What is a Roth 401(k)?\nA Roth 401(k) requires you to pay taxes on income when it is deposited into the account. Then no taxes are due at the time of withdrawal.\n### How Do I Choose Between a Traditional Deferred 401(k) and a Roth 401(k)?\nIf it's early in your career and you are making less than $40,000 a year, you may opt for the Roth 401(k). You are probably in a lower tax bracket now than you will be at retirement. So it will save you money in the long run to pay taxes upon deposit via a Roth 401(k). However, once you start making more than $40,000 a year, switch to a traditional deferred 401(k), as your tax bracket at retirement will probably be less than the height of your career.\n### When Should I Enroll in a 401(k) Plan?\nAs soon as possible, as the sooner you start saving, the bigger returns you'll see from interest earned, over the years, in the long run. Some employers automatically enroll their employees into the plan. If you're not sure, check with human resources and get it done!\n### How Often Should I Deposit Money Into My 401(k)?\nYou probably should set up an automatic withdrawal from every paycheck, if your employer has not done so already.\n### Do I Have to Deposit the Full Amount of My Employer's 401(k) Match?\nYou are by no means required to deposit as much of your income as your employer is willing to match, but it's certainly the smartest thing to do. For as long as your employer offers the match, do your best to deposit the full amount, as you re doubling your money.\nWhat is an IRA?\n---------------\nAn IRA is an Individual Retirement Account that may diversify your money into various investments, such as a mutual fund or retirement annuity. This is something you can, and probably should, have in addition to your work's 401(k).\n### What is a Deferred IRA?\nA deferred IRA allows you to deposit income into the savings plan without paying taxes on it. Instead, these taxes are deferred, meaning you pay them later, on the date of withdrawal.\n### What is a Roth IRA?\nA Roth IRA requires you to pay taxes on income when it is deposited into the account. Then no taxes are due at the time of withdrawal.\n### Is It Permissible to Make Withdraws Early From My 401(k) and\/or IRA?\nWhile you are legally entitled to be able to make withdrawals from your retirement savings, it is never advisable to do so, as you will pay in penalties. That is why it is imperative that your regular savings plan not only includes savings for retirement but also for an emergency fund, just in case. END
 TITLE: What is my Social Security Account? CONTENT: my Social Security Account: What It Is and Why You Need It\n----------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 8, 2017_\nAs you may or may not have noticed, the Social Security Administration doesn’t mail out yearly statements anymore. Instead, they mail out statements every 5 years — 3 months prior to workers turning 25, 30, 35, 40, 45, 50, 55, and 60. Still, that’s an improvement over the period between 2011 and 2014 when no statements went out at all, regardless of age, due to budgetary constraints. Fortunately, you need not wait 5-year intervals to see your estimated Social Security earnings.\nGet yourself a my Social Security account and you can check the status of your benefits online anytime. Just keep in mind that, once you sign up for a my Social Security account, you will no longer receive paper statements at all. The same is true once you start receiving Social Security benefits.\n**What You Can Do With a my Social Security Account**\n-----------------------------------------------------\n**1) View Your Estimated Benefits**\nDo you have any idea of how much Social Security you will receive when you retire? my Social Security breaks it down for you, including how much you can expect to receive per month if you retire at 62, 67, or 70.\nNote, this is based on your _current earnings rate_, meaning the estimate can change according to your income going forward. If you make less than your current income going forward, your estimate will be lower; if you make more than your current income going forward, your estimate will be higher.\nYou can also see the estimated benefits for disability and survivor benefits. These numbers are estimates for _now_ — how much you would receive if you became disabled today and how much your survivors would receive in the event to of your death today.\n**2) See Your Earnings Record**\nThis is a pretty impressive document, as you can see a breakdown of your earnings for every year you have worked over the course of your lifetime. Make sure it’s accurate, though, as your earnings and taxes you’ve paid on them is what determines your benefits. If you don’t have records that go back that far, verify what you can.\n**3) Get a Copy of Your Social Security Statement**\nWould you like your own copy for easy reference? You can get a copy of your full Social Security statement. This includes all of the same information you can view on the website but in a PDF format that you can save and print right from your own computer. Our suggestion is that you save these documents to an external hard drive or on to a flash drive so you do not lose them. Saving them on to an flash drive will ensure you have this information even if your computer crashes. And, it makes this information safe from hackers. \n**4) Download Your Statement Data as an XML File**\nAre you using a software program to help with your financial and retirement planning? The XML file format can be useful for quickly and easily importing your Social Security data into say, QuickBooks. Also, this format is helpful if you are sending this information to your accountant.\n**5) Request a Replacement Social Security Card**\nThis is a secure 3-step process: 1) background information, 2) identity verification, 3) confirmation.\n**6) Get Proof You Do Not Receive Social Security Benefits**\nWhen you select this option, you’ll be redirected to a page that displays this letter immediately, with an option for you to print or save it.\n**7) Use the Help Center For All Sorts of Related Issues, Such As:**\n*   Changing or correcting the name on your Social Security card.\n*   Getting Social Security cards for newborns and children.\n*   Applying for retirement.\n*   Applying for disability.\n*   Applying for Supplemental Security Income.\n*   Applying for Medicare.\n**Security of Your Account**\n----------------------------\nAre you concerned about hackers accessing your online account? So are they, thus Social Security’s integration of Equifax verification into its authentication system.\n**Make Sure You’re In the Right Place**\n---------------------------------------\nIf you’re ready to create a my Social Security account, make sure you’re on the right website. Here’s a direct link to my Social Security and here is the address: END
 TITLE: Medical Savings Account - Saving Money for Medical Expenses CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: September 8, 2017_\nIf you're like most Americans, you're lacking in two key areas that a medical savings account (MSA) may help you with; saving money, and paying out-of-pocket medical expenses. MSA's can help with both, though only if you meet the qualifiers established when health savings accounts (HSA's) were signed into law. Think of HSA's as an expansion of the MSA program, clearing the way for even more people to take advantage of this tax deferment opportunity for qualifying medical expenses.\nWhat is a Medical Savings Account (MSA)?\n----------------------------------------\nA medical savings account, or MSA, is an opportunity to cover your medical expenses with tax-free income. An MSA may only be established for individuals covered by a high-deductible health plan (HDHP). Whatever amount you (or your employer) contribute to the MSA throughout the year is considered tax-free income. It remains tax-free if and when you withdraw said funds to pay for qualifying medical expenses. These withdrawals count toward the HDHP deductible. Once this deductible has been reached via qualifying MSA withdrawals, the HDHP covers any additional medical expenses incurred the remainder of the year.\nMSA's were signed into law in 1996 under the Kassebaum-Kennedy bill during President Bill Clinton's administration. They were made available only to self-employed individuals or businesses with 50 or fewer employees. Because of these limitations, HSA's (health savings plans) were signed into law in 2003 — the same concept as an MSA, but clearing the way for anyone to take advantage of this tax-deferment program.\nWhat is a High-Deductible Health Plan (HDHP)?\n---------------------------------------------\nAn HDHP is a health insurance plan that comes with a higher deductible than most insurance plans. However, because the deductible is so high, the premiums are relatively low. MSA's must be set up in conjunction with an HDHP.\nWhat Are the Pros and Cons of an MSA?\n-------------------------------------\n**PROS:** Any out-of-pocket medical expenses you incur with a high-deductible health plan are tax-free, meaning you will not be taxed on whatever contributions\/withdrawals you make with your MSA throughout the year. If you are a relatively healthy person with few medical expenses, MSA's are a great way of saving tax-free money that you can access without tax or penalty once you reach retirement age.\n**CONS:** If you incur medical expenses on a regular basis, MSA's can be costly, as you are required to carry the HDHP. Your premiums may be low on the HDHP, but the deductible is so high that, even with tax-deferred payments via the MSA, you will have a hefty out-of-pocket expense. In other words, if you do have serious medical issues, you may be better served by a regular insurance plan with a higher premium, but with a lower deductible.\n### How Can I Qualify for an MSA?\nTo qualify for an MSA you must have been an active participant in the program prior to January 1, 2008. You may qualify from that date forward if, and only if, you became a participant in a high-deductible savings plan through a participating employer. The new alternative for individuals is the HSA (health savings account).\n### What is an Archer MSA?\nAn Archer MSA is simply a reference to the sponsor of the bill that established MSA's in 1996 — Congressman Bill Archer of Texas.\n### Who Makes Payments Into My MSA?\nIf your participation in an MSA is through your job, your employer makes contributions to the account. If your employer does not make such contributions, or you are self-employed, you make the contributions. However, at no time in a given year may and your employer both make contributions to your MSA.\n### Is There a Maximum Amount That May be Contributed to an MSA in a Given Year?\nYes, contributions to your MSA cannot exceed 75 percent of your HDHP's annual deductible. Contributions also cannot exceed the total income you received from the employer through whom you have your HDHP.\n### What if I Contribute More Than the Allowable Amount into my MSA?\nYou will be taxed for the excess contributions.\n### Under What Circumstances May I Withdraw Tax-Free Funds From my MSA?\nMost medical expenses qualify under the MSA guidelines, including basic medical care, dental care, vision care and long-term care needs. This excludes over-the-counter drugs not prescribed by a physician.\n### Must I Itemize my Deductions on my Tax Return in order to Receive Deductions for MSA Contributions?\nNo, you need not itemize your deductions in order to claim tax-deferred contributions to an MSA. However, you must report your contributions on Form 8853.\n### If I Change Employers, Do I Lose the Contributions I Have Made to my MSA?\nYour MSA is mobile so you will not lose the funds you have contributed with an employer, whether you change employers or simply leave the work force. That said, you cannot make further contributions to the MSA unless you go to work for an employer that has a qualifying MSA program.\n### What Happens to my Contributions if I do not Withdraw the Funds for Use by the End of the Year?\nUnused MSA contributions roll over to the next year.\n### Can I Withdraw MSA Contributions from the Account for Non-Medical Expenses?\nYes, you may withdraw MSA funds at any time. However, you will be taxed and penalized if the funds are used for non-qualifying medical purposes.\n### What Happens to my Contributions Once I Reach Retirement Age?\nOnce you reach age 65, any funds you have in your MSA may be withdrawn, tax-free. Any non-qualifying withdrawals made before that time (for non-medical expenses) result in taxes and penalties.\n### What Happens to the Funds in my MSA in the Event of my Death?\nYour MSA is automatically transferred to your named beneficiary. If it is your spouse, it becomes his or her MSA. If it is not your spouse, the MSA is dissolved and the funds are made available to the beneficiary, but as taxable income.\n### What is a Medicare Advantage MSA?\nA Medicare Advantage MSA is simply an MSA plan available to Medicare participants. Medicare makes the contributions to this type of MSA account. END
 TITLE: Health Savings Account - Tax-Advantaged Medical Savings Account CONTENT: Health Savings Account (HSA) — Tax-Free Account for Medical Expenses\n--------------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 8, 2017_\nIf you are a relatively healthy person looking for a way to help you save money for retirement, a health savings account (HSA) may be for you. It's not only a great way to claim tax-free income, but also to set aside a nice chunk of change for coverage of unforeseen medical expenses, as well as a safety net of support for your retirement years.\nWhat is a Health Savings Account (HSA)?\n---------------------------------------\nA health savings account, or HSA, is an opportunity to cover your medical expenses with tax-free income. An HSA may only be established for individuals covered by a high-deductible health plan (HDHP). Whatever amount you (or your employer) contribute to the HSA throughout the year is considered tax-free income. It remains tax-free if and when you withdraw said funds to pay for qualifying medical expenses. These withdrawals count toward the HDHP deductible. Once this deductible has been reached via qualifying HSA withdrawals, the HDHP covers any additional medical expenses incurred the remainder of the year.\nHSA's were signed into law in 2003 under the Medicare Prescription Drug Improvement and Modernization Act under President George Bush. They were created to expand upon medical savings accounts (MSA's).\nWhat is a Medical Savings Account (MSA)?\n----------------------------------------\nMSA's were signed into law in 1996 under the Kassebaum-Kennedy bill during President Bill Clinton's administration. They were made available only to self-employed individuals or businesses with 50 or fewer employees. Because of these limitations, HSA's (health savings plans) were signed into law in 2003 — the same concept as an MSA, but clearing the way for anyone to take advantage of this tax-deferment program.\nWhat is a High-Deductible Health Plan (HDHP)?\n---------------------------------------------\nAn HDHP is a health insurance plan that comes with a higher deductible than most insurance plans. However, because the deductible is so high, the premiums are relatively low. HSA's must be set up in conjunction with an HDHP.\nWhat Are the Pros and Cons of an HSA?\n-------------------------------------\n**PROS:** Any out-of-pocket medical expenses you incur with a high-deductible health plan are tax-free, meaning you will not be taxed on whatever contributions\/withdrawals you make with your HSA throughout the year. If you are a relatively healthy person with few medical expenses, HSA's are a great way of saving tax-free money that you can access without tax or penalty once you reach retirement age.\n**CONS:** If you incur medical expenses on a regular basis, HSA's can be costly, as you are required to carry the HDHP. Your premiums may be low on the HDHP, but the deductible is so high that, even with tax-deferred payments via the HSA, you will have a hefty out-of-pocket expense. In other words, if you do have serious medical issues, you may be better served by a regular insurance plan with a higher premium, but with a lower deductible.\n### How Can I Qualify for an HSA?\nYou qualify for an HSA if you are covered under a high-deductible health plan (HDHP), either by your employer or through a plan you pay into yourself.\n### Who Makes Payments Into My HSA?\nIf your participation in an HSA is through your job, your employer makes contributions to the account. If your employer does not make such contributions, or you are self-employed, you make the contributions. Unlike an MSA, an HSA allows both you and your employer both to make contributions to your HSA in the same calendar year.\n### Is There a Maximum Amount That May be Contributed to an HSA in a Given Year?\nYes. The IRS recently announced the new 2018 Health Savings Account index figures. Maximum contribution levels to your HSA are:\n*   $3,450 for a single person\n*   $6,900 for a family\n*   $1,000 for 55+ (HSA catch-up contributions)\n### What if I Contribute More Than the Allowable Amount into my HSA?\nYou will be charged income tax for the excess contributions.\n### Under What Circumstances May I Withdraw Tax-Free Funds From my HSA?\nMost medical expenses qualify under the HSA guidelines, including basic medical care, dental care, vision care and long-term care needs. This excludes over-the-counter drugs not prescribed by a physician.\n### Must I Itemize my Deductions on my Tax Return in order to Receive Deductions for HSA Contributions?\nNo, you need not itemize your deductions in order to claim tax-deferred contributions to an HSA. However, you must report your contributions on Form 8853.\n### If I Change Employers, Do I Lose the Contributions I Have Made to my HSA?\nNo, your HSA is mobile, meaning you do not lose the funds you have contributed with an employer, whether you change employers or simply leave the work force. That said, you cannot make further contributions to the HSA unless you go to work for an employer that has a qualifying HSA program.\n### What Happens to my Contributions if I do not Withdraw the Funds for Use by the End of the Year?\nUnused HSA contributions roll over to the next year.\n### How do I Make Withdrawals From my HSA?\nWithdrawal methods vary depending on your HSA, from debit cards, to checks, to a reimbursement process. And there is no approval system for withdrawals. You simply take out what you need when you need it. However, for the funds to be considered tax-free, the withdrawals must be for qualifying medical expenses, for which you must retain and provide verifying documentation.\n### Can I Withdraw HSA Contributions from the Account for Non-Medical Expenses?\nYes, you may withdraw HSA funds at any time. However, you will be taxed on the income and charged a 20 percent penalty if the funds are used for non-qualifying medical purposes.\n### What Happens to my Contributions Once I Reach Retirement Age?\nOnce you reach age 65, any funds you have in your HSA may be withdrawn, tax-free. Any non-qualifying withdrawals made before that time (for non-medical expenses) result in taxes and penalties.\n### What Happens to the Funds in my HSA in the Event of my Death?\nYour HSA is automatically transferred to your named beneficiary.\n### How are HSA's Similar to MSA's?\nHSA's are very similar to MSA's in that both enable you to contribute tax-free funds to a savings account - funds that may be deposited and withdrawn tax-free if spent on qualifying medical expenses OR may be withdrawn tax-free at retirement age. Both also allow you to roll over unused funds from year-to-year.\n### How are HSA's Different from MSA's?\nWhile an MSA was only made available to small businesses of 50 or fewer employees, or the self-employed, HSA's are available to anyone who also carries a high-deductible health plan (HDHP). Also, unlike MSA's, HSA's allow for both you and your employer to make contributions to the account within the same calendar year. The contribution limits for HSA's are also higher than that of MSA's.\n### Can I Switch From an MSA to an HSA?\nYes, you may roll over the funds in an MSA into an HSA.\n### Can I Roll Over the Funds in my HSA to a Different HSA Account?\nYes you can.\n### Can I Roll Over my HSA Funds into an IRA?\nThe Tax Relief and Health Care Act of 2006 does allow for a one-time rollover of your HSA funds to an IRA, allowing you to fund up to one entire year's worth of your maximum allowable HSA contribution. END
 TITLE: Why Parents Can Not Save For College Education CONTENT: Why Parents are Not Able to Save for College and Ways to Help\n-------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\nLack of disposable income is the main reason given for why parents are saving less for their child's college education. According to a recent study by Sallie Mae, parents who are saving money for college are saving less than ever before. The average amount of money being socked away fell to $10,040 in 2015 from $13,408 in 2014 and of these parents who are able to save some money, 61 percent of them blame the low amount of savings on lack of money.\nDecreasing salaries, increasing cost of utilities, gas, and food are all contributing to the lower disposable income for mom and dad and the reason why they are putting less into a saving account for college. We will discuss some strategies you can use to help jump start a savings plan for your child's college education.\nReasons for Decline in College Savings\n--------------------------------------\nSaving for college is a simple matter of dollars and cents and very often it is one of the hardest things to get started. Often times parents get overwhelmed with having to pay for day to day expenses and when it comes time to think about putting away 10 percent of their income into a saving account, it just doesn't get done. If that sounds like you, then change your goals to be more reasonable and attainable based on your current circumstances. If you can only save 2 percent of your income a month, then start with that amount and you can always adjust it later. Lowering your expectations a bit can lessen the stress you may be putting on yourself to save as much money as possible.\nSetting unreasonable goals is the first reason for the decline in college savings, the other is finding the money to put into the account in the first place. If you have worked up a budget so you know where all of your money is going each month, look for some places where you can cut back to make a little extra money available. For instance, do you really need to spend $200 on cable TV each month, $80 a month for a pool maintenance person, or $100 month on Starbucks coffee? Making some little adjustments to your spending habits can put a little extra money into a college savings account. You will be surprised at places you can cut back and you will not even miss these things once they are gone.\nWhere to Put Your Money \n------------------------\nNow that you have a reasonable goal for your monthly contribution, you now need to put the money into a place where it will grow the fastest. Recent statistics show about half of American families that are saving for college use a general savings account. Just 27 percent utilize a tax-advantaged account, like a 529 college savings plan. Let's go over some options you have when it comes to saving money for college tuition.\n### 529 Plans\nThe 529 plans are a great way to save for college for the same reason your 401(k) plan is a great way to save for retirement. Namely, income tax savings. Like a qualified retirement plan, earnings in these plans grow tax-free. Every state offers some type of 529 plan, either a college savings plan, prepaid tuition plan, or both.\nUnlike your 401(k) at work, there’s no federal tax deduction for 529 contributions. But two-thirds of states offer a state tax deduction for residents and these six states, Arizona, Kansas, Maine, Missouri, Montana and Pennsylvania, offer a tax break for any state’s plan.\n### College Savings Plans\nThese plans are very similar to tax-advantaged retirement plans, such as 401(k)s. You put in as much as you’re allowed, choose an investment option, then hope your contributions earn enough to meet your needs when college rolls around. Earnings are tax-free if used for any qualified college expense, including tuition, fees, and room and board. If one kid ends up skipping college, you can substitute a sibling, or even use the money for yourself if you go back to college.\n**Drawbacks**: If you end up not using the money you put away in a 529 plan, you won’t lose it. But you will pay a 10 percent penalty and income taxes on the earnings (not the principal) for any non-education withdrawal. So you want to be fairly sure someone in the family will ultimately go to college.\nAnother drawback is that these plans also not very flexible. Investment options are limited and can typically only be changed or transferred to another plan once a year.\n**Tips**: If you live in a state with income taxes, you’ll obviously want to use your state’s plan if it offers a state tax deduction. If you’re able to shop around among various states, however, look for plans with low expenses. As with your 401(k), low expenses mean higher earnings.\n### Prepaid Tuition Plans\nA college savings account is simply a tax-advantaged place to accumulate money for a specific purpose. Also like retirement plans, there’s no guarantee that when the date arrives to use those savings, they’ll be enough. But, a prepaid tuition program eliminates that doubt by guaranteeing that if you deposit today’s tuition, it will pay the future tuition, no matter what happens.\nThere are two types of prepaid tuition plans: those offered by states, designed to pay the tuition of in-state public universities, and those offered by private colleges.\n*   State plans are designed to pay the tuition for public schools within a specific state.\n*   Prepaid tuition plans sponsored by specific private universities, you can check them out at here.\n### Roth IRA\nWhat does a Roth IRA have to do with funding an education? Another provision of these accounts is that you can withdraw your original investment before retirement age without incurring a penalty. Roth rules allow you to withdraw your original investment to pay for your child's education without penalty.\nOne potential drawback: For tax year 2017, you can only contribute the maximum to a Roth if your modified adjusted gross income is less than $118,000 for singles and $186,000 for joint filers.\n### Summary\nWhen it comes to which of these savings options is best, each one has advantages and drawbacks. They all depend on factors such as where you live, your income and your ability to save. No matter what you decide, the most important thing you can do is start early and make your contributions automatic. That’s the way to both increase your odds of saving enough and getting there as painlessly as possible. END
 TITLE: Individuals Who Are Unbanked and Underbanked CONTENT: No Checking or Savings Account? How to Survive Without Using a Bank\n-------------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\nIn a press release issued by the FDIC (Federal Deposit Insurance Corporation) in October 2016, the number of U.S. households without a bank account fell significantly in 2015 to seven percent — the lowest in the survey's history. Even with this good news, not all demographic groups saw a decrease. Unbanked rates for Asian households increased from 2.2 percent in 2013 to 4 percent in 2015. Why are there still so many people without bank accounts? Because too many people still do not have a credit score and access to financial services necessary to buy a home, build a business, or send children to college. Many studies have given credence to the theory that checking and savings accounts are not right for everyone. At the end of this article, we will give you some tips on how to find the best services for operating without a bank account.\nUnbanked and Underbanked Consumers\n----------------------------------\nWhat do the terms **_Unbanked_** and **_Underbanked_** mean? An **unbanked** person is someone with no bank account of any kind: no checking, savings or credit card. **Underbanked** means a person who has some sort of bank account but still uses services like check cashing, money orders and payday loans.\nThese unbanked and underbanked consumers represent a considerable market opportunity for financial services companies. The unbanked and underbanked bought upwards of $3 trillion of goods and services with cash and money orders. Too often, these consumers pay a premium to get access to their funds at fringe financial outlets.\nWho is Likely to be Unbanked or Underbanked?\n--------------------------------------------\nGenerally low income people do not have checking accounts, while low to middle income people are more likely to fall into the underbanked segment.  Job loss, income decrease or loss, lower education, and younger Americans seem to be the demographic composition of those who fall into the unbanked or underbanked categories.\nWalmart has been adding financial services designed to cinch its relationship with the unbanked by recently offering a new prepaid debit card for its \"credit-challenged\" customers. Walmart is providing a one percent cash back bonus for consumers who use its prepaid Visa to buy gasoline, another step in its long, concerted effort to build loyalty among lower income consumers.\nReasons Why People are Underbanked or Unbanked in the U.S.\n----------------------------------------------------------\n*   Distrust of the banking system.\n*   Cannot maintain sufficient balances to avoid high monthly fees.\n*   Write too few checks to need a checking account.\n*   Have too little income to justify a savings account.\n*   The decline of bank branches in many lower-income and inner-city neighborhoods has made a banking relationship inconvenient for many consumers.\n*   Have no Social Security Number. Believe it or not there are 20 million adults in this country who do not have a Social Security Number.\nTips for Using Un-banking Services\n----------------------------------\nIf you are one of the millions of Americans not tied into the banking system, you can do business using other methods. Just be careful as there are a lot of businesses willing to prey on you and others so keep these helpful tips in mind:\n1.  **Need a Loan** — You can use Peer-to-Peer lending sites, which require no credit. Some of the big ones: Prosper.com and VirginMoney. There's also GreenNote, which provides alternative student-loan funding sources such as friends, family and alumni.\n2.  **Check Cashing** — Walmart offers check cashing for a $3 per check flat fee. If you compare this with checking account fees of $10 per month and you are paid twice a month, check cashing may be a cheaper alternative to banking. There are many check cashing stores around that will charge mush higher fees. Make sure to know the fees up front before you cash your checks.\n3.  **Alternatives to Credit Cards** — A great alternative to a credit card is a prepaid card. Shop around online to find a card with the lowest setup fee (yes, there is a setup fee involved.) You can get one online and reload it, or buy one from a store. This way, you can use plastic instead of cash.\n4.  **Debit Cards** — There are debit cards tied to non-banking financial institutions, such as PayPal. This may be a good option for those who buy and sell online.\n5.  **Secured Cards** — Secured credit cards are available from various banks. Your credit limit depends on your deposit (any bank will give you a savings account as long as you have 2 IDs — it's a checking account which is difficult to get).\n6.  **Checking Accounts** — You can find a list of non-ChexSystems banks listed on the internet. This just means these banks will not pull a ChexSystems report on you before giving you a checking account. That may be a good thing if you have had a rough time with another bank.\nBanks and credit unions are rapidly addressing the problem of unbanked and underbanked households in the U.S. by developing checking and savings accounts targeted towards low-income households. These new products will hopefully help these consumers and save them money in the long run by offering financial services with lower fees. END
 TITLE: Individuals Who Are Unbanked and Underbanked CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
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 TITLE: Free Banking - Banking Without Fees CONTENT: If You Pay to Bank, Here's Ways to Bank For Free\n------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 8, 2017_\nThink free banking is hard to find these days? Not according to a survey conducted by the American Bankers Association. They found the majority of Americans — 61 percent — pay nothing at all for bank services such as checking account maintenance and ATM access. Most bank customers (72 percent) spend $3 or less in monthly fees. If you are paying to bank, learn how to eliminate banking fees and bank for free.\nGet The Best Deals\n------------------\nHow do you normally choose your bank? The one with a branch closest to your house? The one your best friend uses? The one you’ve been using since you opened your first account as a teenager? If you answered yes to any one of these questions, it’s time to shop around.\nBig banks (e.g., Wells Fargo, Chase, Bank of America) have higher fees than smaller community banks and credit unions, or online banks. That’s not to say you cannot find free banking at big banks across the board. It just means you need to shop around for the best deal.\n**Sign Up for Direct Deposit**\n------------------------------\nMany checking accounts are free when your paycheck or benefits check is automatically deposited each month into your account. What is even better than the free checking account is the fact your money will be available immediately. No waiting for a check to clear — which could take upwards to 5 business days.\nKeep a Minimum Balance and Multiple Accounts \n---------------------------------------------\nJust about every bank will offer you a free checking account if you keep a minimum balance in a savings account. Doing this helps avoid monthly fees and accidental overdrafts by linking your checking and savings accounts together. What is even better is to set up a monthly transfer of funds from your checking into your savings. This is a great way to start to save up a nest egg or a small emergency fund.\nUse Only Your Bank's ATMs\n-------------------------\nThis is biggest reason for bank fees is using an ATM from a bank that is not affiliated with your bank. If you can, avoid using ATMs not owned by or affiliated with your bank. If you do have to use an ATM from another bank, take out enough so that you will not have to go back and use it again. Prime example of this is when you are on vacation. You might not be able to find an ATM which is affiliated with your bank. If so, take out a large enough sum so you won't have to go back multiple times.\nSign Up for Email or Text Alerts\n--------------------------------\nKeeping track of transactions and account balances will help you avoid bounced checks and overdraft fees. This can be easily done now-a-days using your smart phone. You can easily download your banks app on to your phone and from there you set up email and text alerts. You can also set up reminders to pay bills or transfer money through your bank's app. If you are not technology savvy, we are sure a banking associate will be more than happy to walk you through setting it up.\n**Read the Notices You Receive From Your Bank**\n-----------------------------------------------\nWhat’s free today may not be so tomorrow. Fortunately, your bank is legally required to let you know if and when they make changes to your account. So don’t toss or delete notices from your bank without taking the time to read them. If the rules have changed outside of your comfort zone, give your bank a call to see about other options and\/or start shopping around again for a new bank altogether.\nUsing one or more of the above tips will ensure you will never have to pay banking fees again. Join the thousands of smart people who know how to bank for free and avoid bank fees. END
 TITLE: Online Checking Account and Online Banking CONTENT: Is It Time to Switch Your Checking to an Online Bank?\n-----------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\nJust because your traditional bank offers online banking services doesn’t mean you’re reaping the benefits of a bank that operates **_exclusively_** online. But are you really ready to say goodbye to the tradition of brick-and-mortar banking?  Since online banks do not have the overhead associated with running brick-and-mortar locations, they can afford to pass on the savings to customers.\nWhere Online Banks Save You Money\n---------------------------------\n**Fewer\/Lower Fees.**  While you may still expect certain fee-free requirements, overall they are easier to avoid. For instance, the monthly minimum balance required for fee-free checking through an online bank is typically lower than that of a traditional bank. Also, most online banks have arrangements with ATM networks that enable them to waive or reimburse you for ATM withdrawals.\n**Higher Interest Rates.**  While traditional banks offer interest-bearing checking accounts, you should expect the interest rate to be considerably higher through an online bank.\n**Where Online and Traditional Banks Break Even**\n-------------------------------------------------\nJust like your traditional bank, its online counterpart should be FDIC insured, meaning you are protected for up to $250,000. (Note, **never** do business with any bank – online or off – that is not FDIC insured.)\n**Where Online Banks Cannot Compete**\n-------------------------------------\nIf you love the physical aspect of the banking experience, you may have a hard time saying goodbye to your traditional bank. While an online bank representative may be just a phone call away, it’s not the same as being able to exchange a smile or look the teller in the eye. And there is something comforting about being able to walk into “your bank,” especially if it’s one of the big ones with locations you can visit pretty much anywhere in the country.\n**Tips for Choosing an Online Bank**\n------------------------------------\n*   Shop around. There are a number of online banks to choose from, but some of the most popular include Ally Bank, USAA, and Capital One 360 (formerly ING Direct).\n*   Make sure it is FDIC Insured.\n*   Find out how check deposits are handled. For instance, can you deposit checks via your phone? Or do you have to physically mail in the check, which will mean waiting for it to arrive before you have access to the funds?\n*   Find out potential fees associated with the account, and how to avoid them For instance, what is the minimum balance required? How many debit card transactions must you log monthly? And what other potential fees do you need to know about?\n*   Check the ATM coverage to be sure you have access to conveniently located fee-free locations.\nStill not sure? Take it slow. Hold on to your traditional bank account while you give an online bank a go. END
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 TITLE: Non-Bank Banking - Credit Unions, Cash Management Accounts CONTENT: The Pros and Cons of Non-Bank Banking\n-------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: September 11, 2017_\nBanks aren’t the only ones in the “banking” game. Besides using one of the big-box banks, you can choose to park your money at a credit union, money market mutual fund, or a cash management account. But is it worth the switch? You decide.\nIf you’re less-than-thrilled with your bank’s checking and savings options, consider the alternatives, which is not to say consider another bank. Credit unions not only offer more attractive checking and savings accounts than your bank. They also tend to be more customer (or in this case, _member_) friendly.\n**Pros**\n*   Non-profit, member-owned. You reap the benefits via lower interest rates on loans and higher interest rates on savings.\n*   Lower fees across the board. Another benefit of credit unions’ non-profit status.\n*   CO-OP ATM network. Many credit unions have joined forces to provide more ATM access to members, sharing ATMs with one another at no additional cost to customers.\n*   Bad credit not so bad. At least relative to a traditional bank’s take on the issue. Credit unions are far more accepting of less-than-stellar credit when it comes to extending loans to members.\n*   Insured up to $250,000 by the National Credit Union Share Insurance Fund (NCUSIF).\n**Cons**\n*   Eligibility requirements. You cannot just walk into any credit union and open an account. You must join first and doing so requires meeting certain eligibility requirements. Find one you’re eligible for via the credit union locator of the National Credit Union Administration.\n*   Fewer bells and whistles. Expect to see the biggest difference in rewards programs and online account services.\n*   Rising fees. Though credit union fees are still lower than banks, that’s not to say fees will not go up in the future. Keep an eye out.\n**Money Market Mutual Funds**\n-----------------------------\nIf you’re considering, or already have, a money market _deposit account_ with your bank, you may want to opt for a money market _mutual fund_ instead, offered by mutual fund companies.\n**Pros**\n*   Typically higher returns on investments than a money market deposit account (or savings or checking account, for that matter).\n*   Investments are relatively low-risk (e.g., CDs, Treasury Bills, etc.)\n*   Money is easy to access, as you can write checks and make withdrawals on the account.\n**Cons**\n*   Minimum opening balance required.\n*   Minimum daily balance required.\n*   May limit checks and withdrawals.\n*   You will pay fees.\n*   Not usually FDIC-insured.\n**Cash Management Accounts**\n----------------------------\nIf you have a nice chunk of money to invest but aren’t ready to tie it up in a long-term, difficult-to-liquidate investment, consider a cash management account through a brokerage firm. This allows you to combine the best of banking and investing options.\n**Pros**\n*   Money in the account earns money market rates.\n*   Write checks and make deposits, as you would with a regular bank account.\n*   Use an ATM debit card, as you would with a regular bank account.\n*   Insured up to $100,000 by the Securities Investor Protection Corporation.\n**Cons**\n*   Requires a minimum opening deposit.\n*   You will pay fees.\nIf the change you’re ready for isn’t quite as drastic as all that, consider mobile banking or online-only banking via sites like Ally and iGOBanking. END
 TITLE: Non-Bank Banking - Credit Unions, Cash Management Accounts CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
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 TITLE: How Lawsuits Work - Navigate Civil Litigation CONTENT: Basic Overview of the Litigation Process\n----------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 21, 2017_\nBeing served a lawsuit can be a scary event for most of us, but it doesn't have to be. If you understand the three basic phases and the two intermediate steps associated with a lawsuit, you will feel more comfortable handling a lawsuit or filing a lawsuit against someone else.\nBasic Elements of a Lawsuit\n---------------------------\nThe three main components of a lawsuit are:\n1.  **Complaint —** Plaintiff is stating all the facts regarding his case and the laws that are going to back up his case against the Defendant.\n2.  **Answer —**  Defendant has an opportunity to address each of the Plaintiff's allegations by either admitting, denying, or claiming no knowledge of them and providing no additional information — other than simply denying what the Plaintiff is claiming.\n3.  **Trial —**  If the case is not settled through arbitration, mediation, or settlement conference, the case will then proceed to trial to be heard by a jury of their peers.\nThe two intermediate phases of a lawsuit are:\n1.  **Motions —** These are made by the Defendant to either dismiss, to strike, or request more information from the Plaintiff to prove his complaint is legitimate.\n2.  **Discovery —** This is where both sides attempt to make a record of the truth through interrogatories, depositions, production of documents, and request for admissions to the court. This is a very important aspect of a lawsuit and should be very thorough and comprehensive, winnable cases have been lost due to insufficient or inadequate discovery.\nLawsuits are won by making a record of the Facts and Law during each of the five phases. To win as a Plaintiff, you must meet your burden of proof that the facts and the law in your case agree. To win as a Defendant, you have to prove that the Plaintiff's facts and law DO NOT agree, so that the Plaintiff will not be able to meet his burden of proof.\nIn a nutshell, the Plaintiff is trying to meet his burden and proof and the Defendant does all that he can do to shoot holes in the Plaintiff's case.\nSteps to Take When Navigating Through a Lawsuit\n-----------------------------------------------\nSTEP 1:  \nAn incident occurs and a **Summons and Complaint** is filed by the Plaintiff. The Defendant is served this Summons via a Process Server.\nSTEP 2:  \nAn Answer needs to be filed by the Defendant. Does the Defendant admit to the allegations?\n**Yes** - Default judgment is granted to Plaintiff. Case is over.  \n**No** - A Motion to Dismiss is filed by the Defendant.\n* * *\nSTEP 3:  \nWas the Motion to Dismiss, that was filed by the Defendant, granted by the court?\n**Yes** - If Motion to Dismiss was granted, case is dismissed. Case is over.  \n**No** - A Motion for Judgment on the pleadings or a Motion for Summary Judgment can then filed by either the Plaintiff or the Defendant.\n* * *\nSTEP 4:  \nWas the Motion for Judgment on the pleadings or the Motion for Summary Judgment granted by the court?\n**Yes** - The Judgment was granted to the moving party. Case is over.  \n**No** - Proceed on to next step.\n* * *\nSTEP 5:  \nNow we are in the Discovery phase of litigation. Depositions are taken, interrogatories obtained, and production of any documents are completed during this period. A pretrial conference is held. At this conference, was a settlement reached?\n**Yes** - Settlement agreement is drafted. Case is over.  \n**No** - Proceed on to next step.\n* * *\nSTEP 6:  \nCase now moves to trial and a date is set. At trial, jury selection takes place and the Plaintiff then presents his case. After the Plaintiff rests, the Defendant can file a Motion for Directed Verdict. Was this motion granted by the court?\n**Yes** - Court grants Defendant the Judgment on Directed Verdict. Case is over.  \n**No** - Proceed on to next step.\n* * *\nSTEP 7:  \nNow the Defendant can present their case to the court. After the Defendant rests, the Defendant can once again file a Motion for Directed Verdict. Was this motion granted by the court?\n**Yes** - Court grants Defendant the Judgment on Directed Verdict. Case is over.  \n**No** - Proceed on to next step.\n* * *\nSTEP 8:  \nThe judge now gives the jury their instructions and the jury is then excuse to begin deliberations. Once the jury has come to a decision, the court is notified and all the parties return to the courtroom. One person from the jury is chosen to read the verdict. The verdict is read to the court and it is recorded.\n* * *\nSTEP 9:  \nLosing Party makes a motion for a new trial. Does the court grant this motion?\n**Yes** - Go back up to Step 5 and start all over again.  \n**No** - Case is over.\n* * *\nNow obviously, we have made the above steps very short and sweet and easy to understand. There are so many other nuances within each step we could go on for pages, but, the purpose of this article is to give you a bare-bones understanding of the litigation process.\n_Please note: **WE ARE NOT ATTORNEYS**. If you are being sued, it's always a good idea to hire an attorney or get some legal assistance. If you cannot afford an attorney, a lot of people have handled their cases pro per or without a lawyer. Our articles are meant to provide basic information on handling litigation._ END
 TITLE: Pretrial Discovery - Gathering Evidence in a Lawsuit CONTENT: Pretrial Discovery - Tools Used to Uncover the Facts of a Lawsuit\n-----------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 21, 2017_\nThe early stages of a lawsuit involve the disclosure of evidence by each party which is known as pretrial discovery. Discovery is meant to eliminate surprises and to clarify what the lawsuit is about, should either party realize they should settle or drop the lawsuit.\nGenerally, most civil cases in the U.S. are settled right after discovery. After discovery, both sides are often in agreement regarding the strengths and weaknesses of the case and this results in a settlement which eliminates the expense of a trial.\nTypes of Discovery\n------------------\nHere are the different types of formal discovery tools that are frequently used in lawsuits.\n*   **Requests for production of documents.** This is generally how discovery will take place in anything you might do. You will be asking for any proof that a creditor has regarding the debt. Requests for production are usually used to gather pertinent documents, such as contracts, employment files, billing records, or documents related to real estate.\n*   **Depositions.** In a deposition, the parties meet face-to-face and answer questions under oath. The questioner can be either the party taking part in the lawsuit or the party's lawyer. The questions and answers are recorded and used as evidence. The deposition can be submitted in the form of a written transcript, a videotape, or both. In most states, either of the parties may take the deposition of the other party, or of any other witness. Both sides have the right to be present during oral depositions. Typically, in consumer credit lawsuits, depositions are not used.\n*   **Interrogatories.** An interrogatory is a written list of questions which must be answered. In some states, an interrogatory is sent to a consumer along with a summons to trial. They are used exactly like depositions, any answers to questions in an interrogatory can and will be used against you.\n*   **Requests for admission.** In a request for admission, one party asks the other party to admit, under oath, that certain facts are true or certain documents are genuine. The request for admission is also usually sent along with the summons and is required to be filed along with an answer.\n*   **Sharing information about expert witnesses, and the expected testimony**. If an expert witness is to be called or submit testimony, this bit of discovery shares the background of the witness and what areas of expertise they will be testifying on.\n*   **Physical or mental examinations of a person.** In general, the court where the action is pending may order a party whose mental or physical condition is in controversy to submit to a physical or mental examination by a suitably licensed or certified examiner. The court has the same authority to order a party to produce for examination a person who is in its custody or under its legal control. This discovery is rarely used in civil debt cases.\nIf allowed by your state or county rules of civil procedures, you should always ask for discovery at the minimum in the forms of requests for production of documents. You can also send your own interrogatories and requests for admissions. The only exception would be if you are sending a bill of particulars (only certain jurisdictions allow this), which can sometimes serve as all the discovery you need.\n_Please note: **WE ARE NOT ATTORNEYS**. If you are being sued, it's always a good idea to hire an attorney or get some legal assistance. If you cannot afford an attorney, a lot of people have handled their cases pro per or without a lawyer. Our articles are meant to provide basic information on handling litigation._ END
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 TITLE: What to Say to a Judge in Court CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: October 26, 2017_\nPeople are often scared out of their wits when faced with having to go to court. They don't know how to act or what to say when the judge asks them questions. Yes, it can make or break your case if you say the wrong thing, but you don't need to speak legalese or be experienced in court.\nHere are some general guidelines on what to say and do in court:\n*   If you are not in the process of formally presenting your case, don't say ANYTHING unless judge asks you a question.\n*   Don't EVER interrupt the judge.\n*   Call the judge \"Your Honor\" if addressing the judge directly. At other times, you can refer to the judge as \"Your Honor\" or \"the Court\".\n*   Stand when you are speaking.\n*   If the judge asks you to go out in the hall to discuss a settlement with the Plaintiff's attorney, politely tell them you don't want to settle. Insist on moving forward with the case, even if that means going to trial.\n### How to Answer Distressing Questions Truthfully, but in Your Favor\n**Judge:** Is this your debt?  \n**You:** Your Honor, the Plaintiff has provided no proof of this debt. To the best of my knowledge and evidence provided, this is not my debt.\n**Judge:** Did you ever have a card with Bank A?  \n**You:** Yes, I did Your Honor, but to the best of my recollection, this card was paid off. In addition, the Plaintiff has provided no proof the debt is unpaid or even that this PARTICULAR debt is mine.\n### Plaintiff's Attorney Introduction of Evidence\n**Spoken Statements:**  \nIf the Plaintiff is a collection agency or junk debt buyer, object to anything the attorney says as hearsay. The attorney and the plaintiff do not have intimate knowledge of the creation of the debt.\n**Written Evidence:**\n1.  If the Plaintiff's attorney shows anything that wasn't included in the original summons\/complaint package, or wasn't provided in discovery, object on the basis that it wasn't included in discovery and cannot now be submitted. You can also object if the evidence is not authenticated, meaning that the evidence cannot absolutely be substantiated as a true copy of an original document.\n2.  If any evidence isn't authenticated, object to it as hearsay. \"Authenticated\" means there is a letter from the issuing company stating that these are true copies of the original.\nIf you want an excellent example of what to say and what not to say to the judge in court, read one of our reader's experiences in court. You'll be glad you did! END
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 TITLE: Pretrial Conference - Settling a Lawsuit Before Trial CONTENT: Should You Settle Your Case During a Pretrial Conference?\n---------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 21, 2017_\nIn our website, you can find numerous articles about credit repair, debt settlement, and bankruptcy. But what happens when you open your front door one sunny day to find a process server handing you a lawsuit. As part of our coverage on legal matters, this article covers that point in litigation just before your case is set to go to trial, the Pretrial Conference.\nPre-Trial and Case Management Conference\n----------------------------------------\nIn some courts these terms basically mean the same thing. California in particular uses the term Case Management Conference.\n### What is a Pretrial Conference?\nA pretrial conference is a scheduled meeting between the Defendant, Plaintiff, and their attorneys, conducted prior to trial. The conference is held before the actual trial judge or a magistrate (a judicial officer who possesses fewer judicial powers than a judge). A pretrial conference may be held prior to trial in both civil and criminal cases.\n### What is the Purpose of a Pretrial Conference?\nThe purpose of the pretrial conference is to assure that all parties are prepared to go on to trial, and to discuss the possibility of settling the case prior to going to trial. This conference is ordered by the court and is held in the courtroom to facilitate a face-to-face discussion. If the parties agree that all or a portion of the debt is owed, then those specific issues are not in dispute and can be settled by agreement without going on to trial.\nA pretrial conference may be held for the following reasons:\n*   Settle the case before going to trial.\n*   Help the court establish control over the case.\n*   Discourage wasteful pretrial activities.\n*   Improve the quality of the trial with thorough preparation.\n### What Do You Bring to a Pretrial Conference?\nWhen you come to a pretrial conference, you should bring the original Summons and Complaint, your Answer, and any other motions or legal documents you received from the court or the Plaintiff's attorney. If you have kept any type of personal log regarding the progression of the case, bring that along with you as well. You will not bring any witnesses to the pretrial conference - the only one attending is going to be you and your attorney.\nMost importantly, come to the conference prepared and with a game plan. Think hard and long about what will this lawsuit cost you if you go to trial versus what it will cost you to settle it at the conference. You may have to swallow your pride but in the long run, eating a little crow is better than spending a fortune in a legal battle.\nSettle or Not to Settle, That is the Ultimate Question\n------------------------------------------------------\nThe majority of those reading this article are probably going it alone, without the help of an attorney. We recommended that you go to the pretrial conference with an open mind and be ready to compromise and possibly settle. You need to be prepared and you need to analyze the Plaintiff's case against you. Do they have a strong case or do they have one based only on a Complaint with no backing documentation such as payment history or a contract. Since you are not paying an attorney at this point, it might be worth your while to see just what the Plaintiff might have against you.\nIf you are being represented by an attorney, then you will need to weigh the cost of your attorney with what can you settle this case for and end it quickly.\nRemember, the sole purpose of a pretrial conference is to settle the case before it goes to court. Judges want to settle as many cases as possible and they will try their hardest to get your case to settle. But, some cases are not settled at the pre-trial conference and a trial will need to be set. This is the last option that should be considered because of time and possible costs to one or both parties. If a case is set for trial, the Judge, at the pre-trial, will set a schedule of events, including dates to comply with discovery, motions, and subpoenas.\n_Please note: **WE ARE NOT ATTORNEYS**. If you are being sued, it's always a good idea to hire an attorney or get some legal assistance. If you cannot afford an attorney, a lot of people have handled their cases pro per or without a lawyer. Our articles are meant to provide basic information on handling litigation._ END
 TITLE: Legal Tool Kit to Handle a Litigation Case CONTENT: Legal Tool Kit — Everything You Need to Handle Litigation\n---------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 21, 2017_\nIf you have been looking through this website, you most likely see that we advocate do-it-yourself credit repair. But, can one handle their own debt litigation? Of course! Besides the wealth of free information on our site, there is a lot of free information on the Internet regarding litigation and how to handle your own lawsuit.\nLet's say you are taking on the legal firm of \"You Owe & Pay Now\" hired by one of those evil collection companies. You are going to need a set of tools to keep it all the documents and information in order and easy to find. Most of the materials are cheap and some you may already own. If you get these materials together and keep them in one place, it will be much easier to navigate the legal process. Being organized is half the battle and the better organized and prepared you are, the better your chances are for success.\nSupplies You Will Need to Handle a Lawsuit\n------------------------------------------\n1.  A two-drawer filing cabinet or a cardboard file drawer to keep all of your papers organized and safe.\n2.  File folders.\n3.  Office supplies such as a stapler and staples, pens and paper, highlight pens, and yellow sticky pads.\n4.  Legal size privacy envelops.\n5.  Certified mailing cards and slips, which can be picked up at your local post office. It is easier to fill these out at home and bring the completed forms to the post office for mailing. You can also send things certified by printing your own labels at the USPS website.\n6.  Recorder for your phone.\n7.  Clipboard for your pre-printed log form to keep track of phone calls.\n8.  A printer that can scan documents so you can e-mail them.\n9.  Computer and printer. If you can not afford one, you can use a public computer at a local library or college campus.\n10.  Flash drive or a data stick that you can save files to if you are using a public computer. This is also a great way to back up all your information in the case of a computer crash.\n11.  A journal or diary to record how the collection calls have affected your ability to sleep, concentrate, and work. How it has affected your personal life and relationships. How it impacts your health. Feelings of loss, hopelessness, depression, thoughts of suicide. This journal can be for you, but it can also serve as a record for a potential claim of damages in addition to anything else claimed.\n12.  Several three-ring binders and dividers in which to put the following:\n    *   State Rules of Evidence\n    *   Other court topics divided into separate sections. I had my binder organized with all documents from day one, with anticipated actions by the Plaintiff and my responses and a section on case law, and one with motions written up in advance with citations to keep me on task.\nSources for Free Legal Information\n----------------------------------\nBesides having all of the necessary supplies on hand, you will also need access to some free information regarding litigation. Here are some sites we have found and highly recommend:\n*   Legal Forum — Our legal discussion group is a great place to see what others have gone through as well as a great place to ask questions.\n*   Law Guru — This site has a search function for past legal questions, free legal advice, and other legal research tools. END
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 TITLE: FACT Act Changes and Changes to the FCRA CONTENT: Fair and Accurate Credit Transactions Act — Changes to the FCRA\n---------------------------------------------------------------\n###### Written by: Kristy Welsh\nThe FACT Act (HR 2622) was signed into law by President Bush in December 2003. Officially titled the Fair and Accurate Credit Transactions Act of 2003, the FACT Act incorporates and extends the Fair Credit Reporting Act (FCRA), which had preemption provisions that expired in December 2003. The new act is aimed to:\n*   Prevent identity theft\n*   Improve the resolution of consumer disputes\n*   Improve the accuracy of consumer records\n*   Make improvements in the use of, and consumer access to, credit information\nPreventing Identity Theft\n-------------------------\nThe fraud provisions of the FACT Act do, thankfully, make it easier for a consumer to deal with fraud when it does occur. Unfortunately, they don't do much to prevent identity theft from happening, apart from:\n*   Allowing military personnel to place blocks on their accounts while serving overseas.\n*   Preventing merchants from printing credit and debit account numbers on receipts in their entirety.\nFraud provisions in the FACT Act include:\n*   Simplified requirements for consumers to report any suspected fraud or identity theft.\n*   A requirement that the credit bureau receiving such a consumer report share the information with other major bureaus, so the consumer need only make one call.\n*   A credit bureau receiving an initial fraud\/identity theft report is required to advise the consumer of the right to receive 2 free credit reports in the 12 months immediately following the receipt of the information from the consumer.\n*   Provides that individuals filing fraud\/identity theft information may not be included in lists provided to third parties who wish to solicit insurance or credit business for a period of 5 years, automatically opting out of their sell lists.\n*   Stipulates that when a fraud or identity theft alert is in a credit report obtained by a user, the user must have policies and procedures in place to guard against establishing any new credit plans or credit extension, issuing additional cards or increasing credit limits for such customers unless they verify the true identity of the consumer making the request.\nThe credit bureaus have been providing free credit reports to those who report they may be a target of fraud. One call allows an initial block on the account for 90 days. Once a fraud victim confirms the ID theft has occurred by obtaining and providing a copy of a police report to one CRA within 90 days, all CRAs will place extended blocks on the victim's files.\nImproved Consumer Dispute Resolution\n------------------------------------\nThe old FCRA had no provision that allowed you, the consumer, to dispute inaccurate information directly with the furnisher of the credit. Rather, you'd dispute the item with a credit reporting agency. You could always challenge the original creditor for reporting inaccurate information, but this was largely based on case law and required court action in most cases.\nThe new FACT Act allows you to contact the furnisher directly for a reinvestigation. The furnisher must investigate the dispute and report the results back to you in the same time frame allowed agencies for reinvestigation. Credit reporting agencies have 45 days to conduct reinvestigations of disputed items resulting from free report requests, compared to 30 to 45 days for all other reinvestigations.\nIf they find the information to be inaccurate, they must correct the information with each credit reporting agency they've shared the incorrect information with.\nNote however that reinvestigation responsibility will not be initiated by a notice that comes from a credit repair organization, and that credit furnishers need not respond to frivolous disputes. If they do determine your dispute to be frivolous, they must notify you within 5 business days, tell you why they consider your dispute frivolous, and also tell you what information you must provide to convert the dispute into one that will start a reinvestigation.\nAnd any financial institution that submits negative information to a national credit reporting agency about you must send you a written notice that they have done so.\nAccess to Your Credit Information\n---------------------------------\nAll consumers, regardless of the state they call home, will now have the right to receive one free credit report annually from the national CRAs. The same will be true of all national specialty credit reporting agencies, a newly designated group of credit reporting agencies that collect information such as landlord-tenant, employment, or insurance information. Credit scores and how they are determined must be disclosed to consumers for a reasonable fee, as determined by the FTC. Consumers must be notified of this right.\nMortgage lenders must provide credit scores (along with information on key factors lowering a consumer's score) to those who apply for mortgage loans at no fee.\nPatriot Act Provisions Also Included\n------------------------------------\nThe USA Patriot Act stands for Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001. That's a mouthful!\nThe Patriot Act has been incorporated into the new FACT Act in Section 627, allowing disclosure to governmental agencies for counterterrorism purposes. A confidentiality clause requires the consumer not be notified and that no note be made in the files that information was sought and obtained by the government.\n### Provisions Effective March 31, 2004\n(A) Section 111, concerning the definitions;  \n(B) Section 156, concerning the statute of limitations;  \n(C) Sections 312(d), (e), and (f), concerning the furnisher liability exception, liability and enforcement, and rule of construction, respectively;  \n(D) Section 313(a), concerning action regarding complaints;  \n(E) Section 611, concerning communications for employee investigations; and  \n(F) Section 811, concerning clerical amendments.\n**_All other provisions became effective December 1, 2004._**\nThese include procedures to enhance the accuracy and integrity of information furnished to consumer reporting agencies, improved disclosure of the results of reinvestigation, and the duty to conduct a reasonable reinvestigation. These provisions should help to clear up many of the problems consumers have been encountering under existing law. END
 TITLE: Types of Damages Awarded in Debt Lawsuits CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: October 21, 2017_\nCivil law deals with disputes between individuals, as opposed to criminal law which deals with a crime and legal punishment as a result of a criminal offense. Lawsuits are filed in civil law and damages are awarded to a person as compensation for a loss or injury.\nA person or company can sue another person or company for damages as set forth in the Fair Debt Collection Practices Act (FDCPA). The FDCPA allows someone to sue for \"actual damages\" which arise due to actions taken by a collection agency. Another term for actual damages is compensatory damages. There are other kinds of damages which can be awarded in these types of cases.\nCompensatory Damages\n--------------------\nCompensatory damages, also referred to as actual damages, is money that covers the actual injury or economic loss. Compensatory damages are intended to put the injured party in the position he was in prior to the injury. Compensatory damages typically include medical expenses, lost wages and the repair or replacement of property.\nGeneral Damages\n---------------\nGeneral damages are intended to cover injuries for which an exact dollar amount cannot be calculated. General damages are usually composed of pain and suffering, but can also include compensation for a shortened life expectancy, loss of the companionship of a loved one and, in defamation cases (libel and slander), loss of reputation.\nNominal Damages\n---------------\nNominal damages is a term used when a judge or jury finds in favor of one party to a lawsuit — often because a law requires them to do so — but concludes that no real harm was done and therefore awards a very small amount of money. For example, if one neighbor sues another for libel based on untrue things the second neighbor said about the first, a jury might conclude that although libel technically occurred, no serious damage was done to the first neighbor's reputation and consequentially award nominal damages of a dollar.\nPunitive Damages\n----------------\nPunitive damages are sometimes called exemplary damages, awarded over and above special and general damages to punish a losing party's willful or malicious misconduct. Punitive damages are not awarded in order to compensate the Plaintiff, but in order to reform or deter the Defendant and similar persons from pursuing a course of action such as that which damaged the Plaintiff.\nSpecial Damages\n---------------\nSpecial damages is an award that covers the winning party's out-of-pocket costs. For example, in a vehicle accident, special damages typically include medical expenses, car repair costs, rental car fees and lost wages.\nStatutory Damages\n-----------------\nStatutory damages are required by statutory law. For example, in many states if a landlord doesn't return a tenant's security deposit in a timely fashion or give a reason why it is being withheld, the state statutes give the judge authority to order the landlord to pay damages of double or triple the amount of the deposit.\nTreble Damages\n--------------\nTreble damages are lawyer speak for triple damages. To penalize lawbreakers, statutes occasionally give judges the power to award the winning party in a civil lawsuit the amount it lost as a result of the other party's illegal conduct, plus damages of three times that amount.\n_Please note: **WE ARE NOT ATTORNEYS**. If you are being sued, it's always a good idea to hire an attorney or get some legal assistance. If you cannot afford an attorney, a lot of people have handled their cases pro per or without a lawyer. Our articles are meant to provide basic information on handling litigation._ END
 TITLE: Information on the Consumer Credit Protection Act CONTENT: Consumer Credit Protection Act: What You Need to Know\n-----------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: February 5, 2018_\nWhat if you didn’t know what credit was going to cost until you got the bill? What if errors could stay on your credit reports with no dispute process? What if debt collectors could use whatever means they wanted to collect from you? What if they could garnish as much for your wages as they saw fit? What if credit repair companies could lie to you about what they’re able to do? Well, you’d be in a real financial mess with your credit repair options limited, if not non-existent. This is what makes the Consumer Credit Protection Act so groundbreaking and essential.\nSince 1968, the Consumer Credit Protection Act (CCPA) has been protecting consumers against credit abuses. This law includes many others, broadening credit protections through the Truth in Lending Act, Fair Credit Reporting Act, Wage Garnishment Law, Equal Credit Opportunity Act, Fair Debt Collection Practices Act, Electronic Funds Transfer Act, and Credit Repair Organizations Act.\nAs stated in the CCPA, “it is the purpose of this title to assure a **meaningful disclosure** of…\n“**Credit terms** so that the consumer will be able to compare more readily the various credit terms available to him and avoid the uninformed use of credit, and to protect the consumer against inaccurate and unfair credit billing and credit card practices…\n“The **terms of leases of personal property** for personal, family, or household purposes so as to enable the lessee to compare more readily the various lease terms available to him, limit balloon payments in consumer leasing, enable comparison of lease terms with credit terms where appropriate, and to assure meaningful and accurate disclosures of lease terms in advertisements.”\n### **Finance charges and annual percentage rates**\nThe CCPA states that finance charges may include:\n*   Interest, time price differential, and amount payable under a point, discount, or other system of additional charges\n*   Service or carrying charge\n*   Loan fee, finder's fee, or similar charge\n*   Fee for an investigation or credit report\n*   Premium or other charge for any guarantee or insurance protecting the creditor against default or other credit loss\n*   Borrower-paid mortgage broker fees, including fees paid directly to the broker or the lender (for delivery to the broker) whether such fees are paid in cash or financed\nAs for annual percentage rates, the CCPA outlines:\n*   Computation of rate of finance charges for balances within a specified range\n*   Allowable tolerances for purposes of compliance with disclosure requirements\n*   Use of rate tables or charts having allowable variance from determined rates\n*   Authorization of tolerances in determining annual percentage rates\n### **Exempted transactions**\nSome exceptions do apply. For instance, the CCPA does _not_ apply to credit transactions involving the extension of credit for business, commercial, agricultural, governmental, or organizational purposes.\nRead the CCPA in its entirety.\n**Other Acts Included Under the Consumer Credit Protection Act**\n----------------------------------------------------------------\n### Truth in Lending Act\nThe TILA requires lenders to make certain disclosures before extending credit to you. This applies to both _open end_ and _closed end_ credit, also known as _revolving_ and _non-revolving_ credit, respectively. \nThis law covers what must be disclosed to you: \n*   About finance charges\n*   In your billing statements\n*   In ads and applications for credit cards\n*   In open end credit secured by a home\n*   About payment schedules for closed end credit\nLearn more about the TILA.\n### **Fair Credit Reporting Act**\nThe FCRA requires that credit reporting agencies and data furnishers provide accurate and fair reporting on your credit history. It also covers consumer privacy.\nSpecifically, the FCRA says: \n*   You have the right to see your consumer reports and credit scores\n*   Data furnishers must ensure accuracy of reported information\n*   You have the right to dispute consumer report errors\n*   Consumer reporting agencies must investigate disputes and correct inaccuracies\n*   Not just anyone can see your consumer reports\n*   You must be notified if something in your consumer reports results in adverse action\n*   You can opt-out of prescreened offers\n*   Negative information can only stay on your consumer reports for so long\n*   You have the right to place fraud alerts on your consumer reports\nLearn more about the FCRA.\n### **Wage Garnishment Law**\nAlso known as Title III of the CCPA, the Wage Garnishment Law limits how much of your wages can be garnished to pay a debt. It also prohibits employers from firing you simply because your wages are being garnished (unless they are being garnished for multiple debts).\nLearn more about the Wage Garnishment Law. \n### **Equal Credit Opportunity Act**\nThe ECOA prohibits credit discrimination based on race, color, religion, national origin, sex, marital status, or age. Creditors are also prohibited from denying you credit if public assistance represents some or all of your income.\nThat said, creditors can ask questions _related_ to marital status, children, age, and income under certain circumstances. For instance, they can ask about your spouse if the two of you are applying for a joint account of if you live in a community property state.\nYou could also be asked to volunteer information about your race, sex, and national origin, but only as a means of helping the government detect discrimination.\nLearn more about the ECOA.\n### **Fair Debt Collection Practices Act**\nThe FDCPA requires debt collectors to follow a set of standards for collecting on debts owed by you. Specifically, this law covers:\n*   Locations where they are prohibited from contacting you\n*   Times when they are prohibited from contacting you\n*   The type of statements they are prohibited from making\n*   The type of language they are prohibited from using\n*   What they can say to third parties about your debt\n*   Unfair practices \nLearn more about the FDCPA. \n### **Electronic Funds Transfer Act**\nThe EFTA requires that electronic funds transfers generate receipts so that you have a record of your transactions, an essential reference in the event of an error. This covers receipts for each individual transfer, as well as periodic statements and disclosures.\nLearn more about the EFTA.\n### **Credit Repair Organizations Act** \nThe CROA protects consumers from abuses in the credit repair industry. It covers what credit repair companies are prohibited from doing, like making untrue or misleading statements or demanding upfront payment for services they haven’t completed. But it also covers what credit repair companies _must_ do, like providing with you a written contract outlining the services you are paying them for, as well as the allowance of 3 business days to cancel your contract.\nLearn more about the CROA. END
 TITLE: Information on the Consumer Credit Protection Act CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Account Stated vs Contract Defenses in Credit Card Lawsuits CONTENT: Account Stated and Written Contract — Defenses in a Lawsuit\n-----------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 21, 2017_\nBefore the Internet and e-mail, a credit card agreement was signed by the consumer and sent into the issuing bank for approval. However, these days most credit cards are issued online where there is no signature needed on a contract. This lack of a written signed contract comes into play during lawsuits on defaulted credit card debt.\nIf you are being sued for credit card debt, there are two different ways the Plaintiff can say you, the Defendant, entered into a contractual agreement with the original creditor. This is crucial because if they say you became indebted via a contract, they will have to provide one in court in order to win.\n**Your method of answering the complaint will be different based on whether or not the Plaintiff is claiming \"Account Stated\" or \"Entered into a Contract.\"**\nAccount Stated Basis of a Lawsuit\n---------------------------------\nMost credit card companies cannot produce a contract with your signature, digital or other wise, as part of their case against you. This can get the case tossed out immediately. The easiest thing for a Plaintiff to do when suing you is to declare the contract is _**account stated**_. If they use account stated as the contractual agreement, no written contract is required as evidence. This makes it much easier to win their case.\nThe other big advantage to establishing an account as account stated is that the cause of action is the account stated aspect of the contract itself. If the Plaintiff is basing their claim on a contract, many times you can get the case thrown out because **no cause of action was stated**. If their case is based on account stated, the cause of action is built in.\nDifference Between a Written Contract and an Account Stated Contract\n--------------------------------------------------------------------\nTo answer this question, we have to give you a mini legal lesson.\nClassic contract law in general gives the definition of a purchase contract as: one party buys at an agreed-upon price and pays per the terms of the contract. From there, should a default occur, it's all a matter of how well the terms of the contract can be proven:\n*   The most enforceable contract is the one where both parties sign a witnessed, signed written agreement.\n*   A signed but not witnessed contract is the next best thing.\n*   The least enforceable contract is an oral contract, since what exactly was agreed upon is difficult to prove.\n*   Somewhere in the middle between a signed contract and an oral contract is the account stated contract. It assumes the _use_ of an issued credit card means the consumer agrees to the credit card contract terms.\nIt should be noted, that once proved, all of the above contracts are equally legally binding. It's the difficulty of proof that distinguishes them.\nHow Does One Know if the Plaintiff Maintains the Contract is Account Stated?\n----------------------------------------------------------------------------\nYou ascertain what type of contract the Plaintiff is alleging by reading the allegations in the complaint. Remember, an allegation is every separate action the Plaintiff claims you did to harm them. The allegations are usually presented in a numbered list. The type of contract the Plaintiff is claiming is usually in the top three allegations. Based on the above information, let's see if you can tell which kind of contract is indicated in each of these allegations.\n### Quiz: What Type of Contract?\n(answers below)\n1.  Defendant is indebted to Plaintiff for goods and services plus contract interest purchased on an open account on a theory of account stated.\n2.  The Defendant owes a sum of $XXXX.XX dollars to Plaintiff for charges and\/or cash advances incurred on a credit account as evidenced by the affidavit.\n3.  The defendant was indebted to Providian Bank and failed to make payments.\n4.  The defendant entered into a contract with the Plaintiff.\n### Answers\n1.  Account stated.\n2.  Most likely it would be an account stated, but without looking at the affidavit it's tough to know. Here's a typical affidavit of debt. It's usually possible to get the affidavit thrown out. If the affidavit is thrown out, then the Plaintiff must produce the contract.\n3.  No method of contractual indebtedness was stated, so this would most likely be assumed to be a written contract.\n4.  This assumed a written contract.\nHow to Approach an Account Stated Lawsuit\n-----------------------------------------\n**Here is the full Account Stated Doctrine.**  \nGenerally, an account stated is \"an agreement based upon prior transactions between the parties with respect to the items composing the account, and the balance due, if any, in favor of one of the parties.\" To achieve an account stated, the agreement must amount to a recognition of a debt by a party, with a promise, express or implied, to pay the debt. This recognition can be established by a creditor delivering to a debtor a statement regarding the account and the amount owed. The receiver\/debtor is bound to examine the statement, and if he admits it to be correct, a binding account stated is established. Once an account stated is established, it acts as an admission by both parties that the amount is due.\nStated simply, an account stated is generally established when a debtor fails to object to a bill from his creditor within a reasonable time.\nQuestions to Ask When Considering Defenses You Can Use to Attack the Validity of Account Stated Cases\n-----------------------------------------------------------------------------------------------------\n*   How can the Plaintiff prove that the statement was held by the consumer without objection?\n*   How can the Plaintiff prove that the consumer received the statement?\n*   Is it sufficient for the Plaintiff to claim that a statement was mailed, but not paid?\n*   The most common way to defeat an action for account stated is to show that the debt claimed is new, i.e., that there was no prior course of dealing between the parties or, at best, only a very short period with very few transactions. Therefore, the contract AND the statement of account are required (proof of the length of the debt).\n_Please note: **WE ARE NOT ATTORNEYS**. If you are being sued, it's always a good idea to hire an attorney or get some legal assistance. If you cannot afford an attorney, a lot of people have handled their cases pro per or without a lawyer. Our articles are meant to provide basic information on handling litigation._ END
 TITLE: Account Stated vs Contract Defenses in Credit Card Lawsuits CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Understanding the Equal Credit Opportunity Act CONTENT: Equal Credit Opportunity Act: What Creditors Cannot Do\n------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: November 30, 2017_\nWhether you’re trying to repair your credit, or maintain the good credit you already have, you need to know your rights when it comes to credit approval. The Equal Credit Opportunity Act is a 1974 law that protects consumers from credit discrimination. It’s pretty straightforward, prohibiting discrimination based on race, color, religion, national origin, sex, marital status, or age. But there’s plenty of fine print that requires a deeper understanding. Here’s a summary of what you need to know.\nWho must comply with the ECOA\n-----------------------------\nGenerally speaking, any entity or person that extends credit must comply with the Equal Credit Opportunity Act. More specifically, the FTC states that the law applies to \"banks, small loan and finance companies, retail and department stores, credit card companies, and credit unions. Everyone who participates in a decision to grant credit or in setting the terms of that credit, including real estate brokers who arrange financing, must comply with the ECOA.\"\nIn this article, those who must comply with the ECOA will be referred to as _creditors_, with the understanding that it refers to all of the specific entities (or individuals) listed above.\n**What the ECOA says creditors _cannot_ do**\n--------------------------------------------\nCreditors **cannot deny you credit** — or **determine credit terms** — based on:\n*   Your race, color, religion, national origin, sex, marital status, or age (unless you are under 18, as you cannot legally enter into a signed contract)\n*   The fact that public assistance represents part — or even all — of your income\nThat said, the ECOA makes clear that these topics are not completely off-limits to creditors, meaning _inquiries_ may still be made under certain circumstances.\n### **In the fine print**\n### **Race, sex, and national origin**\nThe FTC says you may be asked your race, sex, and national origin to help the government detect discrimination. However, you are not required to answer and, if you do, this information cannot be used to discriminate against you.\nNote, national origin should not be confused with immigration status, as a creditor can use that information to determine whether the length of time you will be in the U.S. will be sufficient to pay off the debt.\n### **Marital status**\nThe ECOA can ask about marital status if you:\n*   Apply for a joint account\n*   Apply for credit secured by property\n*   Live in a community property state\nNote, wording is very important. They cannot ask if you are _divorced_ or _widowed_; their only options are _married_, _unmarried_, or _separated_. You also cannot lose credit accounts just because your marital status changes.\n### **Spouse**\nThe ECOA can ask about your spouse if you:\n*   Are applying for a joint account together\n*   Want your spouse to be able to use the account\n*   Depend on your spouse’s income (including alimony or child support from a _former_ spouse)\n*   Live in a community property state\n### **Children**\nThe ECOA cannot ask about your plans for future children, but can ask about expenses specific to the dependent children you already have.\n### **Age**\nThe ECOA says creditors can ask your age, but may only use it as a determining factor if:\n*   You are under 18, meaning you are too young to sign contracts\n*   You are 62 or older and it will mean more favorable credit terms\n*   You are about to reach retirement age and it will affect your future income\nYou also cannot lose a credit account just because you reach a certain age or retire.\n### **Income**\nObviously, creditors are going to consider your income. But what creditors cannot do is discriminate about the following _types_ of income they will consider.\nCreditors cannot refuse to consider income from:\n*   Public assistance\n*   Part-time employment\n*   Social security\n*   Pensions\n*   Annuities\n*   Alimony\n### **Credit assistance programs**\nCreditors may refuse to extend credit if you are enrolled in a credit assistance program \"if such refusal is required by or made pursuant to such program.\"\n**What the ECOA says creditors _must_ do**\n------------------------------------------\nAfter you submit an application for credit, the creditor must:\n*   Let you know the status of the application within 30 days\n*   Provide you with reasons why you are not approved for credit\n*   Provide you with reasons for why you are offered less than favorable credit terms (note, this does not apply if you _accept_ the terms)\n*   Provide you with reasons why an existing credit account is cancelled — or terms are downgraded to less favorable terms (note, this does not apply if the account is inactive or you haven’t been making your payments)\n*   Provide you with an appraisal report (if requested by you) \"used in connection with the applicant's application for a loan that is or would have been secured by a lien on residential real property.\"\nYou have the right to get credit:\n*   In your birth name or your married name (which can be just your spouse’s last name or a combination of your birth and spouse’s last name)\n*   Without a co-signer (if you qualify)\n*   Using a co-signer who is not your spouse\n### **Red flags**\nAccording to the Consumer Financial Protection Bureau (CFPB), credit discrimination isn’t always easy to spot, or even intentional. But there are red flags that the CFPB says to be on the lookout for:\n*   You are treated differently in person than on the phone\n*   You are discouraged from applying for credit\n*   You hear the lender make negative comments about race, national origin, sex, or other protected groups\n*   You are refused credit even though you qualify for it\n*   You are offered credit with a higher rate than the one you applied for, even though you qualify for the lower rate\n*   You are denied credit, but not given a reason why or told how to find out why\n*   Your deal sounds too good to be true\n*   You feel pushed or pressured to sign\n**What creditors _can_ consider**\n---------------------------------\nWhen deciding whether to extend credit to you – and the _terms_ of that credit — creditors can consider your credit, income, expenses, debt, debt-to-income ratio, and whether you have collateral necessary to secure a loan (if applicable).\n### **How to file a complaint**\nDo you believe a creditor has discriminated against you based on your race, color, religion, national origin, sex, marital status, age, or income source? The FTC and Consumer Financial Protection Bureau want to hear about it. Submit a complaint to the [FTC here](;panel1-1) and the CFPB here. END
 TITLE: Understanding the Equal Credit Opportunity Act CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Wage Garnishment Law - Info on Title III of CCPA CONTENT: Wage Garnishment Law: What You Need to Know About Title III\n-----------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: March 1, 2018_\nIf you are in default on one or more debts, the prospect of wage garnishment is terrifying. You’re not paying your debts because you cannot _afford_ to pay your debts; wage garnishment gives you no choice. (You’ll also end up in serious need of credit repair.) Get the facts about Wage Garnishment Law, better known as Title III of the Consumer Credit Protection Act (CCPA). Find out when your wages can be garnished, how much they can take, and how you may be able to avoid it through a Wage Garnishment Judgment Exemption.\n**When Your Wages Can Be Garnished**\n------------------------------------\nWhen you default on a debt, the creditor can sue you for the unpaid balance. Assuming the debt is accurate, and the court finds in the creditor’s favor, your employer can be ordered to garnish your wages for payment. Of course, if the creditor is the IRS, they need not go through a judge or court proceeding at all; they can order the garnishment directly through your employer.\n### **Types of wages that can be garnished**\nAny “compensation for personal services” can be garnished:\n*   Wages\n*   Salaries\n*   Commissions\n*   Bonuses\n*   Other (e.g., payments from a pension or retirement program or an employment-based disability program)\nTips are an exception. As explained by the U.S. Department of Labor:\n“The cash wages paid directly by the employer and the amount of the tip credit claimed, if any, by the employer are earnings for the purposes of the wage garnishment law. Tips received in excess of the tip credit amount or in excess of the wages paid directly by the employer (if no tip credit is claimed or allowed) are not earnings for purposes of the CCPA.”\n### **How much can be garnished**\nThere are limits to how much can be garnished from your paycheck. And garnishment can only come from your _disposable earnings_ — that is, how much is left after meeting your obligations for taxes, Social Security, Medicare, etc.\nFrom your disposable earnings, the amount that can be garnished is the lesser of:\n*   25 percent OR\n*   Amount that exceeds 30 times the federal minimum hourly wage ($7.25)\nFor instance, if you get paid weekly, and your disposable earnings are:\n*   $217.50 or less, nothing would be garnished\n*   $217.51-289.99, anything above $217.50 would be garnished\n*   $290 or more, maximum 25 percent would be garnished\nIf you get paid every 2 weeks, and your disposable earnings are:\n*   $435 or less, nothing would be garnished\n*   $435.01-579.99, anything above $435 would be garnished\n*   $580 or more, maximum 25 percent would be garnished\nThat said, there are exceptions.\n### **Spousal and child support**\nYour disposable earnings can be garnished by up to:\n*   50 percent for spousal or child support if you have _another_ spouse or child you are supporting (i.e., those in addition to whoever is named in the order)\n*   60 percent for spousal or child support if that is the _only_ spousal or child support you are providing\n### **Federal taxes**\nIf you owe back taxes, the federal government is not limited by the aforementioned percentages, but must leave you with enough to cover basic living expenses. The way the amount is determined depends on your number of dependents and deductions.\nConsider this example from TurboTax:\n“During 2017 for example, a single parent with two children who files as head of household can be left with as little as $413.46 per week. This means that if you earn $1,000 per week, the IRS takes $586.54 of it, and if you earn $2,000 per week, it can take $1,586.54. However, the amount of your garnishment will depend on how much tax you owe.”\nAgain, unlike other debt collectors, the federal government does not need a judgment to garnish your wages; they can do it directly through your employer.\n### **State taxes**\nLaws will vary by state but the amount garnished cannot exceed that of the federal limit.\n### **Non-tax federal debt**\nOther laws govern garnishment specific to non-tax debts owed to the federal government:\n*   The Debt Collection Improvement Act allows federal agencies (or collection agencies they have hired) to garnish up to 15 percent of your disposable income\n*   The Higher Education Act allows the Department of Education’s guaranty agencies to garnish up to 10 percent of your disposable income for student loans in default\nA court order is not necessary in either case.\n### **Bankruptcy**\nWhen you are in the middle of bankruptcy proceedings, wages cannot be garnished from your paycheck (with the exception of spousal or child support). After bankruptcy, creditors cannot garnish wages that were discharged, but any debt that was _not_ discharged is fair game again.\n### **Voluntary wage assignments**\nIf you grant a creditor the right to take money out of your paycheck, it is called a voluntary wage assignment (which we do not recommend). This is different from wage garnishment, in that there was no judgment against you. It was simply a contract entered into by you and a creditor.\nUnfortunately, Title III does not cover voluntary wage assignments, so you are not protected by any restrictions. That said, some states do have such laws on the books, so check with your State Attorney General’s office for information specific to where you live.\n### **Employer responsibilities**\nWhen your employer is ordered to garnish your wages, they must provide you with a Wage Withholding Order. Unless you are able to stop it (see _Wage Garnishment Judgment Exemption_ below), the employer is required to begin the wage garnishment 30 days from then.\nTitle III also prevents your employer from firing you for wage garnishment…unless you have more than one. If you have multiple garnishments coming out of your paycheck, your employer is free to let you go.\n### **Prioritization of multiple garnishments**\nTitle III does not cover the order in which multiple garnishments should be satisfied; that’s a decision left up to the court or enforcing agency.\n### **The impact of state law on garnishment limits**\nThe law that applies — state or federal — will be the smaller garnishment amount of the two.\n### **How wage garnishment affects your credit**\nA wage garnishment will not show up on your credit reports, so it will not affect your credit score directly. However, the defaulted debt that led to the garnishment can stay on your credit reports for up to 7 years, as can the public record of any judgment against you.\n**How to avoid wage garnishment**\n---------------------------------\nThe most obvious way of avoiding wage garnishment is to avoid defaulting on your debts. If that is not possible, the next best thing is keeping an open line of communication between you and your creditors so that some sort of payment plan can be worked out. If it’s too late for that, and you have already received the Wage Withholding Order, try filing a Wage Garnishment Judgment Exemption.\n**What happens if your rights are violated**\n--------------------------------------------\nIf you believe your Title III rights have been violated, file a complaint with the Wages and Hours Division. END
 TITLE: Truth in Lending Act States What Lenders Must Tell You CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: November 2, 2017_\nHow can you be expected to open a credit card or take out a loan if you aren’t told all the terms of the agreement? You can’t, which is why we have the Truth in Lending Act. Enacted in 1968, this law requires lenders to make certain disclosures before extending credit to you. It’s a long list of requirements, but we’ve summarized the basics for you here, including what lenders must state in ads and applications, and what must be included in your billing statements.\nOpen End Credit\n---------------\nThis is also known as _revolving_ credit, meaning there is no end date for it. This includes **credit cards**, **home equity lines of credit**, and **personal lines of credit**.\nBefore you are extended open end credit, the lender must disclose the following:\n*   How long you have to pay before finance charges will be imposed on charges you make\n*   How they will determine the balance that you are assessed finance charges on\n*   How they will determine the amount of the finance charge itself\n*   Other types of charges that may be assessed\n*   In the case of secured credit cards, acknowledgement of the deposit received\nThe lender must also provide you with a **statement** each billing cycle, which should include:\n*   Your balance at the beginning of the statement period\n*   Breakdown of each transaction during the period (date, description)\n*   Amount credited to your account during the period\n*   Finance charges imposed during the period\n*   Balance on which the finance charge is based\n*   Your balance at the _end_ of the statement period\n*   When you must pay the end balance in order to avoid finance charges\n*   Where you can mail inquiries about your bill\n*   A minimum payment warning that reads something like this: \"Making only the minimum payment will increase the amount of interest you pay and the time it takes to repay your balance.\"\n*   How long it would take you to pay off the balance if you only make minimum payments on the balance, and how much that would cost you\nIn **ads and applications for credit cards**, lenders must disclose:\n*   Annual percentage rates\n*   Annual fees and other fees\n*   Grace periods for avoiding finance charges (or statement that there is no grace period)\n*   How balances are calculated\n*   Refer to temporary annual percentage rates as \"introductory\"\nFor **open end credit secured by a home**, lenders must disclose:\n*   Fixed annual percentage rate\n*   Variable percentage rate\n*   Other fees\n*   Repayment options\n*   Statements addressing balloon payments, negative amortization (if applicable), and tax deductibility\n**Closed End Credit**\n---------------------\nThis is also known as _non-revolving_ credit or _installment_ credit — credit that ends once it is paid off. This includes **auto loans**, **student loans**, **mortgages**, and **personal loans**.\nBefore you are extended closed end credit, the lender must disclose the following:\n*   Amount financed\n*   Finance charge\n*   Total of payments (amount financed + finance charge)\n*   Payment schedule\n*   If secured, acknowledgement of the security received\n*   Late payment fee\n*   Additional disclosures specific to mortgages\nLearn more about the difference between revolving and non-revolving credit.\n### **More on these disclosures**\nAgain, the required disclosures listed here are summarized. To see the specific language of each — as well as more detailed information — you can take a look at the [Truth in Lending Act](;edition=prelim) yourself. It’s a lengthy document, but we can at least tell you where to look so you don’t have to weed through the whole thing.\nYou can scroll through the Act to find the following sections, or you can click the links to go straight to them via Cornell Law School’s website.\nFor more on:\n*   Open end credit, see Section 1637\n*   Open end credit secured by consumer’s principal dwelling, see Section 1637a\n*   Closed end credit, see Section 1638\n### **Other laws you need to know**\nCredit reporting agencies and debt collection companies have strict laws to follow, too. Get the facts in our Quick Guide to the Fair Credit Reporting Act and FDCPA Violations: What Debt Collectors Cannot Do. END
 TITLE: Truth in Lending Act States What Lenders Must Tell You CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Truth in Lending Act States What Lenders Must Tell You CONTENT:    |  |  |  | \n: . END
 TITLE: File a Motion to Strike Plaintiff's Affidavit of Debt CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: October 21, 2017_\nIf you are in the middle of a lawsuit, hopefully you have already read our articles explaining how to answer a summons and complaint and how a lawsuit works. Having digested all of that information, you are now ready to move on to the next phase of your lawsuit, filing a Motion to Strike because part of what you received along with your Summons and Complaint is an Affidavit of Debt from the Plaintiff.\nWhat is an Affidavit of Debt?\n-----------------------------\nLet's start at the beginning so you fully understand what you are reading as you flip through all the legal pages contained in that lovely lawsuit a process server just handed you. It is bad enough he just spoiled your day, but now you have to read all of this mumbo-jumbo and make some sense of it all.\nAn affidavit is a sworn statement in writing, so therefore, an affidavit of debt is a sworn statement from an employee of the Plaintiff (i.e., collection agency) stating they are intimately familiar and\/or aware of the methods of record keeping at the original creditor concerning the debt in question, and they can certify the information in the complaint is true. They also usually state that they've examined the sale or assignment records that establish the relationship between the original creditor selling\/assigning to the collection agency or junk debt buyer.\n**Note:** These affidavits are sometimes notarized, but their validity is unchanged whether or not this is the case.\nIf you, the Defendant, do not object to this affidavit, the court will assume the debt is valid and the debt collector will have the right to sue you, and the suit is proper. You will lose if this happens. Fortunately, most of the time these affidavits are fraudulent or contain false evidence, but you must file a motion to strike so that this evidence can get thrown out of court.\nHere is an example of an affidavit of debt:\n**Plaintiff's Affidavit of Indebtedness and Ownership of Account**\nI am an authorized representative for ACME Collection Agency (hereafter the \"Plaintiff\") and hereby certify as follows:\n1.  I have personal knowledge regarding Plaintiff's creation and maintenance of its normal business records including computer records of accounts receivables. This information was regularly and contemporaneously maintained during the course of the Plaintiff's business. I am authorized to execute this affidavit on behalf of Plaintiff and the information below is true and correct to the best of my knowledge, information and belief based on business records maintained with respect to the account.\n2.  The records provided to Plaintiff have been represented to include information provided by the original creditor. Such information includes the debtors name, social security number, account balance, and identity of the original creditor and account number.\n3.  Based on the business records maintained on account XXXXXXXXXX (hereafter \"account\"), which are a compilation of the information provided upon acquisition and information obtained since acquisition, the account is the result of the extension of credit to \"name\" by original creditor, on or about (date of the origination). Said business records further indicate the account was then owned by ACME Huge Bank. Acme Huge Bank later sold and\/or assigned portfolio 8044 to Plaintiff's assignor which included the defendant's account on (date of assignment). Thereafter, all ownership rights were assigned to, transferred to, and became vested in Plaintiff, including the right to collect the purchased balance owing $1,487.64 plus any additional accrued interest.\n4.  To the best of my knowledge and belief, the Defendant is not a minor or mentally incompetent.\n5.  Based on business records maintained in regard to the account, the above stated amounts are justly and duly owed by the Defendant to the Plaintiff and that all just and lawful offsets, payments, and credits to the account have been allowed. Demand for payment was made more than 30 days ago.\nSigned,  \nClueless Employee  \nACME Collection Agency\nSound scary? Don't worry, we will show you how this affidavit is nonsense and complete hearsay.\n### Court Cases Where Affidavits Were Determined to be False or Fraudulent\nDebt buyers regularly submit affidavits that purport to be made on personal knowledge but in fact are based on reading a computer screen. For example:\n*   Luke v. Unifund CCR Partners, No. 2-06-444-CV, 2007 Tex.App. LEXIS' 7096 (2nd Dist. Ft. Worth Aug. 31, 2007).\n*   Palisades Collection, LLC a\/p\/o AT&T Wireless v. Gonzalez, 10 Misc. 3d 1058A; 809 N.Y.S.2d 482 (N.Y.County Civ. Ct. 2005):\n*   Todd v. Weltman, Weinberg & Reis Co., L.P.A., 434 F.3d 432 (6th Cir. 2006);\n*   Delawder v. Platinum Financial, 443 F. Supp. 2d 942 (S.D.Ohio March 1,2005);\n*   Griffith v. Javitch, Block & Rathbone, LLP, 1:04cv238 (S.D.Ohio, July 8, 2004);\n*   Gionis v. Javitch, Block & Rathbone, 405 F. Supp. 2d 856 (S.D.Ohio. 2005);\n*   Blevins v. Hudson & Keyse, Inc., 395 F. Supp. 2d 655 (S.D.Ohio 2004), later opinion, 395 F.Supp.2d 662 (S.D.Ohio 2004);\n*   Stolicker v. Muller, Muller, Richmond, Harms, Meyers & Sgroi, P.C., 1:04cv733 (W.D.Mich., Sept. 8, 2005).\nIn the **_Palisades Collection, LLC a\/p\/o AT&T Wireless v. Gonzalez_** case, an affidavit was submitted from a Ms. Bergman who claimed to be V.P. of Palisades and familiar with business record keeping practices. Being familiar with records in the course of doing business is one way debt collectors can side-step the hearsay exception:\nMs. Bergmann does not claim to be familiar with AT&T's record keeping practices, but only with the method by which Plaintiff maintains the accounts it purchases from others. _The mere fact the Plaintiff obtained the records from AT&T and then retained them is an insufficient basis for their introduction into evidence._ Therefore, the Court cannot rely on the account statements which Ms. Bergmann proffered to establish Defendant's default.\n### Combat False Affidavits Based on Hearsay Rules\nAttack the authority of the person writing the affidavit:\n1.  Subpoena the Affiant (person writing the affidavit) to appear in court for testimony. Usually this person will be \"unavailable.\"\n2.  File a subpoena for the employment record and resume of the Affiant. There may be some fighting by the Plaintiff's attorney but since they are claiming to be knowledgeable, this is not an unreasonable request.\n3.  Does the employee look like he or she has knowledge of record keeping? If this person has only been employed to contact debtors on the telephone, obviously there is no experience.\n4.  If the Affiant's experience looks questionable, pose the question as to how he\/she can know the original creditor's methods of keeping records.\n5.  What if the Affiant is employed by the original issuer of the credit card? Even if he\/she is an employee of the original creditor, does he\/she have proper experience to be a record keeper?\n6.  Cite the case law given here showing that affidavits are known to be false and misleading.\n7.  Stated in your motion filed with the court that \"the Affiant's employment resume shows he\/she cannot have knowledge of the original creditor's bookkeeping practices, and the fact that she is not available to testify in court - and may not even exist along with the past used of falsified affidavits in other states by this JBD points to this affidavit of being highly suspect and should be stricken.\"\n8.  Does the Affiant have the necessary background to be a record keeper? If so, is there a claim they are familiar with the original creditor's record keeping? What is the proof for their statements?\n9.  Cite cases where affidavits are purported to be made on personal knowledge, but in fact are based on reading a computer screen.\n    *   Luke v. Unifund CCR Partners, No. 2-06-444-CV, 2007 Tex.App. LEXIS' 7096 (2nd Dist. Ft. Worth Aug. 31, 2007)\n    *   Palisades Collection, LLC a\/p\/o AT&T Wireless v. Gonzalez, 10 Misc. 3d 1058A; 809 N.Y.S.2d 482 (N.Y.County Civ. Ct. 2005)\n    *   Todd v. Weltman, Weinberg & Reis Co., L.P.A., 434 F.3d 432 (6th Cir. 2006)\n    *   Delawder v. Platinum Financial, 443 F. Supp. 2d 942 (S.D.Ohio March 1,2005)\n    *   Griffith v. Javitch, Block & Rathbone, LLP, 1:04cv238 (S.D.Ohio, July 8, 2004)\n    *   Gionis v. Javitch, Block & Rathbone, 405 F. Supp. 2d 856 (S.D.Ohio. 2005)\n    *   Blevins v. Hudson & Keyse, Inc., 395 F. Supp. 2d 655 (S.D.Ohio 2004), later opinion, 395 F.Supp.2d 662 (S.D.Ohio 2004)\n    *   Stolicker v. Muller, Muller, Richmond, Harms, Meyers & Sgroi, P.C., 1:04cv733 (W.D.Mich., Sept. 8, 2005)\n10.  File your motion to strike the affidavit of debt with the court.\n11.  At this point, the affidavit should be stricken, and hopefully the case will be dismissed.\n### Sample Motion to Strike Plaintiff's Affidavit of Debt\n**PLEASE DO NOT JUST CUT AND PASTE** as every motion is different. One size does not fit all. If you merely cut and paste, you will lose the case. In addition, you need to review and understand your state\/county Rules of Civil Procedures when filing your motion. Improper filing of your motion will cause it to be denied.\nIN THE JUSTICE COURT OF (City Name)  \nCounty Name, STATE OF\nCase Number: XXXXXXX  \nCollection Agency,  \nPlaintiff\nvs\nJohn Q. Public,  \nDefendant\n**MOTION TO STRIKE AFFIDAVIT OF DEBT IN SUPPORT OF PLAINTIFF'S CLAIMS**\nComes now, Defendant and respectfully states the following:\n1\\. Plaintiff has submitted into evidence an affidavit claiming that the affiant has personal knowledge of business records related to the aforementioned debt. AFFIDAVIT OF DEBT IN SUPPORT OF PLAINTIFF'S CLAIMS (hereinafter referred to as \"EXHIBIT A\").\n2\\. The affiant writing the AFFIDAVIT OF DEBT (Exhibit A) does not explain how the business records came into her possession, only that to the best of her belief they \"represent\" the actual records from the original creditor, Gigantic Credit Card Company.\n3\\. Affiant of AFFIDAVIT OF DEBT does not claim to have personal knowledge of how business records were kept at the original creditor.\n4\\. Affiant of AFFIDAVIT OF DEBT does not claim to have personal knowledge of the sale or assignment of the debt from the original creditor to ACME Collection Agency.\nWHEREFORE, the Defendant prays this Honorable Court that Plaintiff's \"Exhibit A\" be stricken from evidence in the above action.\nI state under penalty of perjury that the foregoing is true and correct.\nDefendant Name.\nBy: \\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_ Date:\\_\\_\\_\\_  \nDefendant Name, Defendant  \nAddress  \nPhone\nI CERTIFY that I mailed \/ delivered a copy of this MOTION to: ACME Collection Attorney  \nAddress  \nPlaintiff's attorney at the above address or Defendant's attorney\nBy: \\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_ Date:\\_\\_\\_\\_  \nDefendant Name, Defendant\nIf you want more help or examples of how to handle your lawsuit, our legal discussion forum is an excellent source of information. It's free so visit it today!\n* * *\n_Please note: **WE ARE NOT ATTORNEYS**. If you are being sued, it's always a good idea to hire an attorney or get some legal assistance. If you cannot afford an attorney, a lot of people have handled their cases pro per or without a lawyer. Our articles are meant to provide basic information on handling litigation._ END
 TITLE: File a Motion to Strike Plaintiff's Affidavit of Debt CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Understanding the Electronic Funds Transfer Act CONTENT: **Electronic Funds Transfer Act: How Your Money is Protected**\n--------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: December 26, 2017_\nAs much as electronic funds transfers have simplified your ability to pay bills and receive money, they lack an essential built-in benefit of paper checks — documentation. Thus, the importance of the Electronic Funds Transfer Act, a 1978 law that requires not only individual receipts for each transfer made, but also periodic statements and disclosures. Errors can be costly — not only to your bank account, but also your credit — so make sure you know your rights.\nIt’s pretty much exactly what it sounds like. An electronic funds transfer is the electronic movement of money (i.e., data as opposed to paper). These types of money transfers come with consumer protections covered by the Electronic Funds Transfer Act, including:\n*   In-store or online purchases made with a debit card\n*   Cash withdrawals made from an ATM with a debit card\n*   Direct deposits into your bank account\n*   Direct debits from your bank account\n*   Electronic checks\n*   Transfers initiated over the phone\nIntentionally omitted from this list are prepaid cards, gift certificates, and store gift cards. Though use of these are technically electronic funds transfers, they are treated differently under the Electronic Funds Transfer Act (see the last section of this article).\n### **Required disclosures**\nWhen you use an electronic funds transfer account or service (e.g., debit card, ATM card, etc.), the Electronic Funds Transfer Act says that the providing financial institution is required to disclose the following to you:\n*   Type and nature of transfers you can make\n*   Your liability for unauthorized transfers\n*   Contact information you are to use if you believe an unauthorized transfer is made\n*   How much you will be charged for transfers\n*   Your right to stop payment on preauthorized transfers\n*   Your right to receive records documenting transfers\n*   Summary of how to resolve errors\n*   The financial institution’s liability to you\n*   When the financial institution can share your account information with third parties\n*   Statement that a fee may be charged to you for using an ATM that doesn’t belong to the financial institution, as well as a fee for “any national, regional, or local network utilized to effect the transaction”\nOnce you already have the account, the financial institution must provide you with 21-day notice of _changes_ to terms and conditions that will increase your cost or liability.\n### **Required documentation**\nFor every electronic transfer you make with your account, the financial institution must provide you with documentation that includes:\n*   Date of the transfer\n*   Type of transfer\n*   How much was transferred\n*   Identity of your account\n*   Identity of the financial institution\n*   Identity of the third-party funds are transferred to or from\n*   Where the electronic terminal used for the transfer is located\n### **Notices regarding preauthorized transfers**\nIf you have a scheduled preauthorized transfer — “from the same payor at least once in each successive sixty-day period, except where the payor provides positive notice of the transfer to the consumer” — the financial institution must let you know when the transfer is made or, conversely, if it was _not_ made as scheduled.\n### **Periodic statements**\nIn addition to the documentation (i.e., receipts) required for each individual transfer, financial institutions are required to provide you with periodic statements, including:\n*   Breakdown of every transfer made during this period\n*   How much transfers cost you during this period\n*   How much you had in the account when the period began\n*   How much you had in the account when the period ended\n*   Contact information you are to use if you see an error on the statement\nAs for frequency, these periodic statements “shall be provided at least monthly for each monthly or shorter cycle in which an electronic fund transfer affecting the account has occurred, or every three months, whichever is more frequent.”\nNote, the provision of documentation varies for consumer passbook accounts.\n### **Preauthorized transfers**\nIf you want to preauthorize a transfer, you must do so in writing. If you want to _cancel_ a preauthorized transfer, your written or oral cancellation must be provided _within 3 business days_ of the scheduled transfer date. Note, financial institutions can require subsequent written instruction be provided within 2 weeks of an oral notification.\nAs for _recurring_ preauthorized transfers, if the amount varies each time, you must be given “reasonable advance notice” of the amount before the transfer is made.\n### **Dealing with errors**\nShould a receipt or periodic statement alert you to an error, you need to notify the financial institution immediately so they can investigate.\nAs outlined in the Electronic Funds Transfer Act, examples of errors include:\n*   Unauthorized transfers\n*   Incorrect transfers\n*   Missing transfers from periodic statements\n*   Mathematical errors made by the financial institution\n*   Incorrect amount of money received from an electronic terminal\n**To initiate an investigation, you must notify the financial institution — orally or in writing — _within 60 days_ of the date on the documentation that reveals the error.**\nThis notification should include:\n*   Your name and account number\n*   Identification of the error\n*   Why you believe it is an error\nWe recommend that you send it in writing, via certified mail, with return receipt. This way you can have proof of the date it was received — an important record to keep as they only have 10 business days from the receipt of your letter to complete their investigation. This time period extends to 45 business days if the financial institution recredits your account the amount in question (within 10 business days of the receipt of your dispute) pending completion of the investigation.\nRegardless, if the investigation determines that there was, in fact, an error, the financial institution is responsible for correcting it within 1 business day of making that determination. Conversely, if they find that no error was made, the financial institution must notify you of such within 3 business of its investigation being complete.\n**Liability**\n-------------\n### **Consumer liability**\nIf an unauthorized transfer is made, your liability shall not “exceed the lesser of $50 or the amount of money or value of property or services obtained in such unauthorized electronic fund transfer prior to the time the financial institution is notified of, or otherwise becomes aware of, circumstances which lead to the reasonable belief that an unauthorized electronic fund transfer involving the consumer's account has been or may be effected.”\n### Financial institution liability\nGenerally, a financial institution is liable “\\[if they fail\\] to make an authorized transaction, in accordance with the terms and conditions of an account, in the correct amount or in a timely manner when properly instructed to do so by the consumer.”\nHowever, a financial institution will not be held liable if the transfer was not made due to:\n*   Insufficient funds in the account\n*   Insufficient funds in the electronic terminal\n*   The transfer being greater than a credit limit\n*   Funds being subject to legal process\n*   An act of God\n*   A technical malfunction \n### Prepaid cards, gift certificates, and store gift cards\nAgain, prepaid cards, gift certificates, and store gift cards do not come with same Electronic Funds Transfer Act protections as other electronic funds transfers outlined above.\nAs the FTC explains:\n“These ‘stored-value’ cards, as well as transactions using them, may not be covered by the EFT Act, or they may be subject to different rules under the EFT Act. This means you may not be covered for the loss or misuse of the card. Ask your financial institution or merchant about any protections offered for these cards.”\nThat said, the Electronic Funds Transfer Act _does_ say that prepaid cards, gift certificates, and store gift cards must conspicuously state:\n*   That an inactivity, dormancy, or service fee may be charged\n*   How much that charge would be\n*   When that charge would be assessed\nAlso, prepaid cards, gift certificates, and store gift cards need not include an expiration date, but if they do, the date cannot be less than 5 years from the date of purchase (or loading of money onto a card).\nWant to know more about your electronic funds transfer rights?\n--------------------------------------------------------------\n[Check out the Electronic Funds Transfer Act in its entirety](;edition=prelim) for details and exceptions. END
 TITLE: Using Affirmative Defenses When Answering a Debt Lawsuit CONTENT: Using Affirmative Defenses in Your Answer to a Debt Lawsuit\n-----------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: January 27, 2021_\nOur article entitled Are You Being Sued? Learn How to Answer a Summons and Complaint explains the mechanics of what to do if you are served a Summons and Complaint. An important part of filing your Answer is to include a list of Affirmative Defenses. Affirmative defenses include any defense, in fact or law, which would prevent the Plaintiff from winning the case. These defenses should be listed at the end of your answer after the section where you have responded to each and every individual complaint made by the Plaintiff. Affirmative defenses should **always** be used when you file your answer with the court. If you do not give them in your answer, you lose the right to bring them up in court later.\nUsing Affirmative Defenses in Your Answer\n-----------------------------------------\nYou need to look up the rules of civil procedure in your state to see if it is proper to use any of these defenses and customize them to be specific to your state's laws. Many of these defenses will not be relevant to your case and some courts may not allow them. Using the entire list is total overkill, and could make you look like you don't know what you are doing. This could really hurt your case. Please tailor your defenses, **DON'T JUST CUT AND PASTE**. If you do not understand fully what a defense means, don't use it. You may be asked in court why you chose a particular defense, so be prepared.\nMost Common Affirmative Defenses\n--------------------------------\nThe following list is by no means an exhausting listing of defenses but rather the most common and useful ones to use in a debt lawsuit. A complete list can be endless and would include any and all defenses you can use which would likely prevent the Plaintiff from winning his case. You need to make sure you not only list your affirmative defense by name but you also add facts to support this defense.\n*   **Statute of Limitations.** Suit was brought on after the statutory limit has passed. Most powerful affirmative defense you can have.\n*   **Lack of Standing.** Lack of standing is a powerful defense to use. It basically means that a debt collector has no legal basis for filing a suit. No legal basis means that there is no clear ownership of the debt or legal assignment of a debt to a debt collector. This can occur when there is no clear paper trail (a.k.a. chain of custody) in the sale or assignment of a debt from the original creditor to the debt collector.\n*   **Failure to State a Claim Upon Which Relief May be Granted.** Either no statute was cited or the complaint fails to state facts sufficient to constitute a cause of action as against this defendant. In general, listing the facts of the case is enough for basis of claim. Use this if the Plaintiff merely says you owe the money and not much else.\nMore Affirmative Defenses You Can Use in a Lawsuit\n--------------------------------------------------\nConsider each of the below affirmative defenses to see if they potentially apply to your case. The vast majority of these may not apply to your specific case, but reviewing these may help you brainstorm and think of some other defenses you may be able to use. Again, these are not a \"one size fits all\" type of defenses; make sure to tailor them to fit your particular case.\n*   Plaintiff admits to purchasing the defaulted debt allegedly owned by the Defendant, causing Plaintiff's injury to its own self, therefore **Plaintiff is barred from seeking relief for damages**.\n*   **Unclean Hands.** If the Plaintiff is giving falsified evidence or producing false witnesses, definitely invoke this defense.\n*   Plaintiff's complaint fails to allege whether or not the purported assignment was partial or complete and there is **no evidence that the purported assignment was bona fide**.\n*   **Plaintiff is not authorized or licensed to advertise or solicit**, either in print, by letter, in person or otherwise the right to collect or receive payment of a claim for another, nor to seek to make collection or obtain payment of a claim on behalf of another. The Complaint fails to allege any exception or exemption to these requirements. The Plaintiff is not any of the following: an attorney at law; a person regularly employed on a regular wage or salary in the capacity of credit men or a similar capacity, except as an independent contractor; a bank, including a trust department of a bank, a fiduciary or a financing and lending institution; a common carrier; a title insurer or abstract company while doing an escrow business; a licensed real estate broker; an employee of a licensee; nor a substation payment office employed by or serving as an independent contractor for public utilities.\n*   Defendant invokes the **Doctrine of Laches** as the Plaintiff or the person or entity that assigned the claim to the Plaintiff waited too long to file this lawsuit, making it difficult or impossible for the Defendant to find witnesses or evidence or that evidence necessary to provide for Defendant's defense has been lost or destroyed.\nThere are also a lot of affirmative defenses regarding a debt collection lawsuit that are absolutely useless that have been floating around for years. Here are some of them.\n_Please note: **WE ARE NOT ATTORNEYS**. If you are being sued, it's always a good idea to hire an attorney or get some legal assistance. If you cannot afford an attorney, a lot of people have handled their cases pro per or without a lawyer. Our articles are meant to provide basic information on handling litigation._ END
 TITLE: Using Affirmative Defenses When Answering a Debt Lawsuit CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
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 TITLE: Damaged Credit Rating - Sue If Your Credit Rating Was Ruined CONTENT: Can You Sue For Damaged Credit?\n-------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 26, 2017_\nIf someone else's actions damaged your credit, you may have a case, but only if the action was illegal, malicious, or infringed upon your rights, including a creditor's willing or negligent provision of inaccurate information to credit reporting bureaus.\n### Examples Where Your Credit May Have Been Wrongfully Damaged\nYou may be able to sue for credit damaged by:\n1.  Erroneous reporting to credit bureaus of balances owed, late payments, etc.\n2.  A creditor's improper handling of an identity theft issue.\n3.  A divorce, wrongful dismissal at work, or personal injury that prevented you from being able to pay your bills, subsequently leading to late payments, missed payments, defaults and\/or charge-offs.\n### When Should I Contact a Lawyer?\nBefore contacting a lawyer to file a lawsuit, it's important to go through the available channels for correcting the credit mistake outside of the legal system. If your dispute results in a negative listing being removed from your credit report, problem solved; no lawsuit necessary. However, if your dispute is dismissed, it proves you tried to resolve the issue on your own, leaving you no choice but to pursue legal counsel. That's when it's time to contact a consumer lawyer, explain your situation, and see if you have a case.\n### How Do I Dispute Erroneous Information on My Credit Report?\nIt's important to try and resolve the matter through the appropriate channels before contacting a lawyer and filing a lawsuit. This means writing letters of dispute to the bank or company that allegedly caused the credit damage, as well as the credit reporting bureaus. Be sure to send these letters via regular mail, certified. This way, there can be no question as to whether your letters are received. Also, it establishes a date of receipt from which they have 30 days to respond to your dispute.\n### My Attorney Says I Don't Have a Case, Should I Just Drop It?\nNo, there are cases in which one or more lawyers turn down a case only to have another lawyer see the possibilities, take the case to court, and successfully win a settlement.\n### How Is The Monetary Award of a Lawsuit For Damaged Credit Determined?\nCredit researchers can review your case and credit history to determine just how much your damaged credit has cost you.\n### What Sort of Damages Are Covered in a Credit Lawsuit?\nWhile every case is unique, damages that may be covered in a credit lawsuit include:\n*   Increased out-of-pocket expenses, such as payments on high interest loans for which damaged credit did not qualify you for lower interest rates.\n*   Loss of credit capacity, such as credit limits lowered.\n*   Loss of credit expectancy, i.e., no longer applying for credit as you did previously, as you know you will simply be turned down.\n*   Aggravation, loss of time, and\/or loss of credit reputation.\n### Can I Sue For Damaged Credit if it Was Already Bad to Begin With?\nWhile you are well within your rights to sue under these circumstances, it's a harder case to prove and win. As a result, you may have a tough time finding a lawyer to take on the case. That said, you never know, so it may be worth seeking counsel to exhaust all possibilities.\n### Are There Any Circumstances Under Which I Can Sue For The Reporting of Accurate Information That Damages My Credit?\nNo, your creditors are well within their rights to report negative information to the credit bureaus provided it is accurate. This includes late payments, defaults, and charge-offs. END
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 TITLE: Suing For Defamation of Character CONTENT: Defamation of Character Lawsuit Against Credit Bureaus\n------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 21, 2017_\nIf you actually have to go to court and sue the credit bureaus or a creditor during a debt validation or credit repair process, you want to do it on the basis of defamation of character or denial of credit. This is a very strong argument based on this court case:\nUnited States Court of Appeals, Fifth Circuit, Case No. 91-7142, John STEVENSON vs. TRW, April 1, 1993.\n### Court Ruling\n*   Section 1681o authorizes a consumer to recover actual damages sustained from the consumer reporting agency's negligent violation of a requirement under FCRA.\n*   Actual damages include humiliation or mental distress, even if the consumer has suffered no out-of-pocket losses.\nIn this case, Stevenson suffered mental anguish over his lengthy dealings with TRW after he disputed his credit report:\n1.  Stevenson testified that it was a \"terrific shock\" to him to discover his bad credit rating after maintaining a good credit reputation since 1932.\n2.  Stevenson was denied credit three times during TRW's reinvestigation: by Bloomingdale's, by Bank One, and by Gabbert's Furniture Company. Stevenson testified that he had to go \"hat in hand\" to the president of Bank One, who was a business associate and friend, to explain his problems with TRW. As a result, he obtained credit at Bank One.\n3.  Stevenson had to explain his credit woes to the president of the First City Bank in Colleyville when he opened an account there. With a new president at First City Bank, Stevenson had to explain his situation again.\n4.  Despite the fact that he was ultimately able to obtain credit, Stevenson testified to experiencing \"considerable embarrassment\" from having to detail to business associates and creditors his problems with TRW.\n5.  Finally, Stevenson spent a considerable amount of time since he first disputed his credit report trying to resolve his problems with TRW.\n**The Verdict:** The district court awarded John M. Stevenson actual damages of $30,000 for mental anguish, punitive damages of $100,000, and attorney's fees of $20,700 for TRW Inc.'s negligent and willful violations of the Act. See, you can fight these guys and win!!\nHow to Prove Defamation of Character\n------------------------------------\n**1\\. Make sure someone other than yourself sees the credit file.** Doing this will help you prove your character was harmed. Apply for credit somewhere and get turned down. There have been some cases in which sums awarded to consumers over inaccurate credit reporting were overturned because only the consumer saw his or her own file. This point is CRUCIAL.\n**2\\. Document if you were denied for employment based on your credit report.** This is a powerful weapon and you need to make sure you document what happened.\n**3\\. Need we say it? Document everything.** Send all letters certified returned receipt. Get copies of their procedural descriptions. Get lenders to send you a letter verifying that the CRA did not contact them.\n**4\\. It never hurts to re-dispute your listings twice.** If they deny you twice, that's even more ammunition proving their harmful actions (or inactions) against you.\nOrder our book, Good Credit Is Sexy, for all the info you'll ever need regarding credit repair. Or, order our eBook entitled How to Sue Your Creditors for more information on how to win money in court.\n_Please note: **WE ARE NOT ATTORNEYS**. If you are being sued, it's always a good idea to hire an attorney or get some legal assistance. If you cannot afford an attorney, a lot of people have handled their cases pro per or without a lawyer. Our articles are meant to provide basic information on handling litigation._ END
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 TITLE: Tips For Suing Credit Reporting Agency CONTENT: Tips When Filing a Lawsuit Against a Credit Reporting Agency\n------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 21, 2017_\nWe came upon these tips from creditnet.com. Hopefully this information will make is easier for you to file a lawsuit against a credit reporting agency. Since so many are trying to trip up the CRAs, here's some hints from all the cases we have read on our discussion forum.\n*   Large award overturned on appeal because file was only seen by consumer, not a lender (def: consumer file is one disseminated to a someone else... you don't count).  \n    **Lesson:** Apply somewhere and let someone other than you see the file.\n*   Get harmed! Get denied somewhere. Apply for employment and have it be an issue. Set up definitive harms to complain about.  \n    **Lesson:** Get denied for each CRA you're suing.\n*   Create a paper trail and document everything. Send all letters certified registered mail. Get copies of their procedural descriptions. Get lenders to send you a letter verifying CRA no contact.  \n    **Lesson:** Trap them in writing. If it's not in writing it doesn't exist.\n*   Good idea to dispute it all and dispute it twice. The CRAs lie so quickly what's the big deal another month? Because a dispute done more than once is SUPPOSED to get more consideration. If they lie to you again, they are violating the higher standard.  \n    **Lesson:** Do it twice but then set up and intend to sue. Anything over two times is a waste of your time.\n*   Dispute directly with the lender, too, because they're supposed to put on your report that the line is in dispute. Rarely, if ever, is this done. Another violation. But you must have a COPY of your report after you contact the lender and dispute it.\n*   READ the FCRA inside and out. Make a list of all the errors they can have. Try to get them to make those errors.\n*   Once you're gathered your case, write one last letter to their legal dept. Site cases, send copies with highlights. Fax them, call them. Be a pain in their assets.\n*   Look for every error and dispute every little one. It makes them look more incompetent and you'll get them all corrected\/ off when you catch them on FCRA violations, etc.\n*   By the way, FCRA is a weak law. Difficult to use as a big hammer. You can use it, but defamation is better and negligent enablement of identity fraud is good. Read up on it all so you know what to say. Use a shotgun approach. If you're right on 2\/5 you're still got them. Use it all and let a judge throw out what does not apply.  \n    **Lesson:** Sue them for it all.\n*   Don't jump the gun. Get it all together then do it right. A threat is one thing, real proof is another. If you say you're filing and they don't fix it all, file. If you're not prepared to at least file in small claims court then you might want to just keep disputing.\n_Please note: **WE ARE NOT ATTORNEYS**. If you are being sued, it's always a good idea to hire an attorney or get some legal assistance. If you cannot afford an attorney, a lot of people have handled their cases pro per or without a lawyer. Our articles are meant to provide basic information on handling litigation._ END
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 TITLE: Using Bill of Particulars in a Lawsuit CONTENT: What is a Bill of Particulars and When Can It Be Used?\n------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 21, 2017_\nIf you live in a state that allows the use of bill of particulars, you have a potentially powerful tool if you are defending against a lawsuit. A bill of particulars can sometimes be used instead of the discovery process. If you live in a state that allows it, one of the first things you and\/or your attorney should do is submit a \"Demand for a Bill of Particulars.\" This is one of the toughest tools you have for defending yourself in court — an opportunity to find out exactly what is alleged against you so you can prepare your defense accordingly. A bill of particulars may be used in either criminal defense or in civil litigation. However, for the purposes here, we will mainly give examples related to defending your self against a debt lawsuit, which is a civil case.\nA bill of particulars is a written statement outlining the reasons a Plaintiff filed a lawsuit against a Defendant. It is a detailed, formal, written statement of charges or claims by a Plaintiff or the prosecutor given upon the Defendant's formal request to the court for more detailed information.\nWhat is the Purpose of a Bill of Particulars?\n---------------------------------------------\nA bill of particulars requests details on everything the Plaintiff states is the meat of the case. This prevents surprises, thus enabling the Defendant to prepare the strongest defense possible. A bill of particulars is also in the best interest of the judicial process overall — the sooner a Plaintiff and Defendant are on the same page about the exact nature of the lawsuit, the more efficiently and effectively the case can move through the system.\nHow is a Bill of Particulars Different from the Discovery Process?\n------------------------------------------------------------------\nIn the discovery process, the Defendant seeks evidence or strategy by which the Plaintiff will build its case. This is the proof the Plaintiff has against the Defendant. A bill of particulars includes no such proof or strategy, but only a list of reasons the lawsuit has been filed.\nWho Can Request a Bill of Particulars?\n--------------------------------------\nThe Defendant requests it to clarify the case, the Plaintiff cannot request it.\n### Under What Circumstances Would a Defendant Provide a Bill of Particulars to a Plaintiff?\nOK, so there is a situation where the Defendant would be asked for a bill of particulars. If you file a counterclaim, the Plaintiff may request a bill of particulars from you.\n### What Should You Ask for in a Bill of Particulars?\nThe nature of the lawsuit determines what should be included in a bill of particulars. For instance, if you are being sued for an unpaid balance on a credit card, your demand for a bill of particulars should request:\n*   Agreement and\/or contract of the relevant account.\n*   Proof the Plaintiff owns the account.\n*   List of items for which payment is being sought.\n*   List of dates associated with each item, transaction or service.\n*   List of charges per item, transaction or service.\n*   Means by which the plaintiff determined amount owed and for what.\n### In What Format Will You Receive the Response Bill of Particulars?\nLocal court rules determine the format for which a bill of particulars must be prepared and submitted.\n### How is the Getting the Plaintiff to Answer the Bill of Particulars Enforced?\nOnce a demand has been received for a bill of particulars, the receiving party should submit it voluntarily. If not, you can file a motion asking the court to force the submission of documentation.\n### Which States Allow the Use of a Bill of Particulars?\nThe bill of particulars was abolished in nearly all U.S. court systems in the 1940s and 1950s due to the widespread recognition that much of the information requested could be obtained more efficiently through the discovery process. Today, only a minority of U.S. states, like New York, Illinois, California (CCP 454), and Virginia, use the bill of particulars.\n_Please note: WE ARE NOT ATTORNEYS. If you are being sued, it's always a good idea to hire an attorney or get some legal assistance. If you cannot afford an attorney, a lot of people have handled their cases pro per or without a lawyer. Our articles are meant to provide basic information on handling litigation._ END
 TITLE: Understand Wage Garnishment Exemptions CONTENT: How to Get a Wage Garnishment Judgment Exemption\n------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 26, 2017_\nIt's stressful enough owing debt you cannot afford to pay. But it's devastating if and when you're forced to pay anyway in the form of wage garnishment. Fortunately, it is not a foregone conclusion that a Wage Withholding Order will stick. The key, of course, is knowing what to do about it.\nWhat is a Wage Garnishment?\n---------------------------\nWage garnishment is a process by which employers are legally required to divert a portion of your paycheck to one or more creditors.\nWhat Type of Debts May Be Garnished?\n------------------------------------\nIf you owe on unpaid student loans, medical bills, credit cards, or state or federal taxes, any of them may be legally obtained through wage garnishment.\n### How Much of My Income Can Be Garnished?\nIf your wages are being garnished by your employer, the amount diverted cannot exceed more than 25 percent of your income. This applies whether it is one or several creditors collecting on your debt in this manner.\n### How Will I Be Notified if My Wages Are Going to be Garnished?\nYou will receive a Wage Withholding Order from your employer. Unless you take action, you can expect the garnishment to start in 30 days.\n### Can My Employer Legally Fire Me For Having My Wages Garnished?\nIf your wages are being garnished by one creditor, no, you cannot be fired. However, if additional creditors seek the same remedy for your unpaid debt, yes, your employer does have the legal right to let you go.\n### How Can I Prevent My Wages From Being Garnished?\nAs soon as you receive the Wage Withholding Order from your employer, file a Wage Garnishment Judgment Exemption with the county clerk's office from which the withholding order originated. Do so immediately, as it can take one-to-two months for a hearing to be set on your behalf.\n### Is It Expensive to File a Wage Garnishment Judgment Exemption?\nNo. On the contrary, filing costs just $8.\n### What Happens After I File a Wage Garnishment Judgment Exemption?\nA hearing will be set for which you must appear to provide relevant documentation. This should include pay stubs of any checks from which wages have already been garnished (if applicable) and a detailed list of your monthly living expenses.\n### Under What Circumstances May I Be Granted or Denied a Wage Garnishment Judgment Exemption?\nIt all depends on your ratio of income vs. your living expenses. If the judge clearly sees that you are living at the bare minimum as it is, and that wage garnishment would prevent payment of necessary bills, such as rent and utilities, you will be granted the exemption. However, if the judge determines that your \"living\" expenses include things considered to be luxuries, the exemption will be denied.\n### Do Creditors Have Any Defense Against a Wage Garnishment Judgment Exemption?\nYes, creditors may file an opposition to the exemption. They may also submit another Wage Withholding Order again after 6 months time, or if your financial situation changes. Note, if a creditor violates this rule and seeks wage garnishment under circumstances contrary to these, they may be fined.\n### Are Wage Garnishment Laws Applicable in All Situations?\nNo, as there may be exceptions in some state and\/or federal tax debt situations, as well as bankruptcy proceedings.\n_Please note: **WE ARE NOT ATTORNEYS**. If you are being sued, it's always a good idea to hire an attorney or get some legal assistance. If you cannot afford an attorney, a lot of people have handled their cases pro per or without a lawyer. Our articles are meant to provide basic information on handling litigation._ END
 TITLE: Pro and Cons of Arbitration vs Court Trial CONTENT: Advantages and Disadvantages of Using Arbitration Over a Court Trial\n--------------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: October 26, 2017_\nAs with just about anything in life, there are pros and cons to using either one of these dispute resolution forums. While some people may prefer arbitration, some may feel a court trial is the only way to handle litigation. Beside having a personal preference, there are some concrete reasons why one forum may be better than the other. Knowing the pros and cons of each will help you to make a decision as to which method is right for your civil case.\nWhat is Arbitration?\n--------------------\nWe all know what a court hearing or trial is all about. So, unless you have been living under a rock, every one of us has either seen a court hearing on television or participated in one. But not everyone is familiar with what arbitration is. By definition, arbitration is a private, judicial determination of a dispute, by an independent third party. In layman's terms, an arbitration hearing is where a dispute between two parties is resolved by an independent person, or arbitrator. An arbitrator hears both sides of a dispute and makes a ruling based on evidence and testimony presented at the arbitration hearing. An arbitration hearing is informal and decided rather quickly.\nPros and Cons of Arbitration Compared to Court Litigation\n---------------------------------------------------------\n**Costs:** Unlike a court trial, it is not necessary to hire an attorney to represent you. This is because arbitration does not involve time-consuming and expensive discovery, subpoenas, and interrogatories. Not hiring an attorney at a cost of over $300 an hour is definitely a money saver. The only draw back of not hiring an attorney, is that you will have to do all the work yourself. So be prepared to put in some time to put your case together.\n**Time:** Arbitration is typically a speedier resolution process than a court trial. An ordinary lawsuit can take upwards of a year or more from initial filing to the trial. In comparison, an arbitration hearing can be over in 3 to 6 months from initial demand. If you want the matter handled quickly, arbitration is the way to go.\n**Flexibility:** Court litigation is controlled by statutory and procedural rules. Judges are very strict in adhering to these rules and if you break one, you can get your case thrown out of court. On the other hand, arbitration rules are established by mutual agreement of both parties as to the submission of evidence, calling of witnesses, and the manner in which the hearing with be conducted.\n**Arbitrator or Judge:** The soundness of any hearing is largely dependent on the quality of the judge or arbitrator hearing the case. In a court hearing, the judge is assigned by the court without any input from either party involved. And, multiple judges may be involved in adjudicating pre-trial disputes. In contrast, in an arbitration hearing, the arbitrator is selected by the parties involved and this arbitrator presides over the entire hearing.\n**Expertise:** Arbitrators are selected from a pool of professionals who typically have experience in the area in which the dispute has arisen. This experience gives an arbitrator a greater capability to comprehend the issues at hand, more so than a trial judge.\n**:** A court hearing is open to the public unless the judge rules for a closed courtroom, which is highly unlikely in matters such as these.  In contract, an arbitration hearing is not open to the public and the parties can agree to keep the proceedings confidential.\n**Right to an Appeal:** Ordinarily an appeal from an arbitration award is permitted only on one of five narrow grounds:\n*   The award was procured by corruption, fraud or other undue means\n*   There was evident partiality, corruption or misconduct by the arbitrator\n*   The arbitrator exceeded his or her powers\n*   The arbitrator refused to postpone the hearing or hear evidence, or improperly conducted the hearing\n*   There was no arbitration agreement\nConsequently, an award in an arbitration proceeding is rarely overturned, even if the evidence does not support the result. In a court trial, the losing party has a right to appeal to a higher court. The basis for the appeal can include alleged errors made by the trial judge as well as alleged mistakes made by the jury, including that the result is not supported by the evidence.\n**Enforcement of the Award:** In an arbitration, the prevailing party can file an application with the local court to confirm the arbitration award and enter judgment. Once a court enters judgment, the award can be enforced just as any other court judgment, including garnishment of bank accounts and execution and seizure of assets. Unlike a court judgment, which usually allows the party to enforce the judgment within 30 days, an arbitration award cannot be enforced until a lawsuit is filed and a court formally confirms the arbitration award and enters a court judgment in conformity with the award. This process usually takes at least 90 days.\nThe decision on whether arbitration is better than a court trial is entirely up to what is important to you in resolving your dispute.  In some cases, arbitration is the only method offered as per a contractual agreement. Either way, if you are heading into an arbitration hearing or a court trial, make sure you educate yourself on the procedures so you can come out the winner in the end. END
 TITLE: Information on Credit Card Arbitration and JAMS CONTENT: How Does Credit Card Arbitration Work?\n--------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: January 3, 2021_\nCredit card arbitration is a form of alternative dispute resolution (ADR). Instead of taking a dispute between creditor and borrower to court, a resolution is sought through a third party, impartial arbitrator. The arbitrator's decision stands, with no opportunity for appeal. Most contractual agreements entered into between credit card companies and consumers include binding mandatory arbitration, in which both parties agree arbitration is the only means through which dispute resolution may be reached (i.e., waiving the right to have a judge or jury decide the case). Either the credit card company or the borrower may initiate arbitration.\nThat said, not all agreements do include a binding mandatory arbitration clause, in which case either party still has the choice to initiate arbitration or sue.\nBenefits of Credit Card Arbitration\n-----------------------------------\nCredit card arbitration costs creditors far more in fees than if they were to go to court. So if you have a choice, and elect arbitration, it is possible that the creditor will simply walk away from collection of the debt. Or, at the very least, it could give you negotiating power in pursuit of a settlement.\nBenefit of Going to Court Instead of Arbitration\n------------------------------------------------\nCalifornia is the only state that requires arbitration companies to publish the results of arbitration cases. So while by no means representative of the U.S. arbitration cases as a whole, it's important to note: the majority of arbitration cases find in favor of creditors. The decision is set in stone, unless you can prove fraud or a significant conflict of interest on the part of the arbitrator. On the contrary, the benefit of going to court is the opportunity to appeal the decision.\n### Choice of Arbitration\nIt's in your agreement with the creditor, so read it carefully. Note, there may be a number of agreements that have been issued between the date you opened the account to the date of default. Look for the agreement that references JAMS (Judicial Arbitration and Mediation Services, Inc.), as this option makes it more costly for the creditor to purse collection of the debt.\nOnce you have found an agreement that references JAMS, look next for a survivability clause within the same agreement. This is important, as newer versions of the agreement may have eliminated the JAMS reference. The survivability clause will read something like, \"this agreement will survive any changes to the agreement in the future.\"\n### When is a Good Time to Elect Arbitration?\nWhen you receive a collection letter, respond with a letter of dispute, requesting that the creditor validate the debt. Do not send in a Motion to Compel unless the creditor initiates a lawsuit. Then you would send in your answer along with the Motion to Compel.\nBefore writing your letter electing arbitration, look for a copy of the contractual agreement entered into between you and the creditor. Look in the dispute resolution part of the agreement for the provision on arbitration, particularly for the mention of JAMS. Make mention in the letter of this provision, and your election of arbitration via JAMS. Failure to make this specification could allow the creditor to initiate arbitration in AAA instead of JAMS, which is far better for the creditor than for you. Also, be sure to mention that, pursuant to the card member agreement, you are requesting the advance of fees to initiate arbitration.\nYou can find a copy of your credit card agreement at. .  \nUnder some agreements, the creditor is required to advance or pay your arbitration fees. Make mention of this in the election of arbitration letter, quoting the relevant text from the agreement.\n### Should You Elect Arbitration if the Statue of Limitations Has Expired?\nAbsolutely not. Every state has different statutes of limitations on different types of debt, so check the specifics of your state. If the statute of limitations has run out, you are no longer legally responsible for the debt.\n### What Happens After a Letter Requesting Debt Validation is Sent?\nThe creditor will either validate the debt, sell the debt to a third-party collector, or simply go away. If your debt is sold to a third-party, be sure to send them the same letters of dispute and election of arbitration. If the creditor sues you, but you included with your debt validation an election of arbitration, then the creditor is in violation. They do not have the right to sue you if elected arbitration first.\n### How to Respond to a Summons and Complaint\nYou will have a deadline for responding to the summons and complaint with your answer and affirmative defenses. At this time, you will also want to file your Motion to Compel arbitration. Note, in some states, you cannot file your answer before your election of arbitration notice; if you do so, you waive your right to arbitrate. Check for rules specific to your state.\nStates also differ in whether you need to file a brief or memorandum in support of your motion. Again, check rules specific to your state.\nBefore sending in your answer\/affirmative defenses, take it to a notary. Only after you have signed in the notary's presence, and they have stamped it, should you file it with your court. Mail a copy to the creditor's attorney, via certified mail with return receipt, and make a copy for yourself. Note, copies of anything you file with the court must be sent to the creditor and their attorney. Be sure to mail these certified mail with return receipt. And, of course, keep copies for yourself.\nInclude a copy of the arbitration agreement with an affidavit. Highlight the arbitration provision. Mention that you have done so, citing the exact page number.\nWhen you file, ask the clerk if you need to request a hearing for your motion. In some courts, there will be no decision on your motion, unless you have scheduled a hearing for it. Other courts will tell you that if it is needed, they will let you know.\n### What to Send to JAMS\nOnce you have received your return receipts proving the creditor's and their attorney's receipt of your election of arbitration, you may send the following documents to JAMS:\n*   The original JAMS demand you sent to the creditor and their attorney.\n*   One copy of the JAMS demand.\n*   Two copies of the complete agreement you entered into with the creditor (highlighting the arbitration provision).\n*   Proofs of service where you sent the JAMS demand to the creditor and their attorney.\n*   A cover letter.\n### How Much Are JAMS Arbitration Initiation Fees?\nJAMS arbitration initiation fees are capped for consumers at $250. You may send in the entire $250, or send as little as $50, asking to make payments on the remainder of the fees. Note, under some agreements, the creditor will advance or pay your fees. In that case, you don't send in any money, but notify JAMS of such, quoting the relevant text from the agreement.\n### What to Do After Sending JAMS Copies and Fees\nYou wait. The creditor may walk away. They might dismiss with the stipulation that you initiate. They might do nothing and then you have to wait for the judge to decide if your MTC will be granted.\nIf it does move forward into arbitration and the initiation fees are paid, then the arbitration is commenced and you will have to file a formal complaint.\n### Difference Between JAMS and AAA\nBoth JAMS and AAA are arbitration services. JAMS (Judicial Arbitration and Mediation Services) is preferable to AAA (American Arbitration Association), as JAMS is most costly to creditors (i.e., increasing the chances they will drop further action). So if you have a choice, elect arbitration via JAMS.\n### Can the Creditor Initiates Arbitration in AAA After Already Initiated in JAMS?\nFile a Motion to Clarify, with which you can state that you initiated arbitration in JAMS before the creditor initiated in AAA. When you do so, it's a good idea to also request a hearing on the motion.\n### When Should You Provide a Copy of the Credit Card Agreement?\nOnly when you file your MTC arbitration with the court must you attach a copy of the agreement. At this time, you would also send a copy of the agreement (and MTC) to the creditor and their attorney as well. Sending the agreement any sooner will be doing yourself a disservice. The longer you can keep the creditor from knowing which agreement you have up your sleeve, the stronger your position.\n### If Dealing with a Junk Debt Buyer, Do You Still Need to Send Copies of Everything to the Original Creditor?\nNo. When a junk debt buyer buys a credit card account, they step into the shoes of the original creditor. So anything referencing the need for you to send copies to the original creditor should be taken to mean the current owner of the debt (i.e., the junk debt buyer).\n### What is a Motion to Compel (MTC)?\nTo initiate arbitration, you do so through a Motion to Compel (MTC) that you file with the court, which should accompany your answer\/affirmative defenses for the summons\/complaint. As with anything else filed with the court, be sure to send a copy of the MTC to the creditor and their attorney.\n### What is a Motion for Summary Judgment (MSJ)?\nA Motion for Summary Judgment (MSJ) is the creditor's request to be awarded the judgment. You need to file an opposition to the MSJ. In it, make sure to point out that you elected arbitration and that you filed your MTC with the court.\n### What if the Judge Rules that Arbitration is Not an Option For You?\nIf you have a hearing scheduled before the judge rules, be sure to point out the arbitration option and survivability clause in your agreement. If the judge rules without a hearing, and your MTC arbitration is denied, you may file a Motion to Reconsider (MTR), in which you will point out the relevant language in the agreement.\n### What if the Creditor Offers to Settle?\nThis is a definite possibility, as the arbitration process is an expensive one for creditors. Use your negotiating power and aim for a settlement the terms of which you can afford to meet. See our comprehensive collection of articles on debt settlement strategy and steps.\n### How to File a Formal Complaint if the Arbitration Moves Forward\nIf arbitration does move forward, with the creditor paying their part of the fees, then arbitration is commenced. From that point, you will need to file your formal complaint within 7 days, unless yours is a case with comprehensive rules (claims over $250,000), in which case you have 14 days.\nYour formal complaint details your claims and looks a lot like a court pleading with you as the _Claimant_ and the creditor as the _Respondent_.\nTo come up with a list of complaints, familiarize yourself with your state's laws, consumer protection laws, fair business practices act, deceptive trade practices, anything that might could be used in addition to possible FDCPA, FCRA, TCPA, Fraud & Misrepresentation, Breach of Contract, and possibly even physical and emotional distress.\n### What is a Forum or a Provider?\nThe _forum_, also known as the _provider_, is an impartial point of contact among all parties involved in the arbitration, including you, the creditor, the creditor's attorney, and the arbitrator.\n### What is the Arbitrator Strike List?\nYou will receive a list of possible arbitrators — usually three to five of them — which you are asked to order according to your preference, though you are allowed to strike one out completely. To make an informed decision, do an online search of each possible arbitrator. Note, try and stay away from ex-bankruptcy judges or anyone tied to the banking industry. Also, try to find out how many times each arbitrator has worked with the creditor. The longer their history together, the less desirable that arbitrator is for you.\nIf you happen to see the creditor's strike list before you submit your own, be sure to strike out on your own list the arbitrator who is the creditor's first choice. It's important to meet your deadline date, but hold off as long as possible before submitting your strike list. The goal is to give the creditor as little time as possible to strike from their list your top choice.\n### What Happens if the Arbitrator Finds in Favor of the Creditor?\nIf the arbitrator finds in favor of the creditor, the creditor must receive a judge's confirmation of the award before they can collect on the debt. Once confirmed, you can expect the creditor to enforce collection measures, which could include garnishment from your paycheck or bank account. Your only alternative option at this time is to dispute the decision if you suspect fraud or conflict of interest on the part of the arbitrator.\n### What Happens if the Arbitrator Finds in Your Favor?\nCelebrate! You won the dispute, forcing the creditor to cease all collection efforts.\n_Please note: **WE ARE NOT ATTORNEYS**. If you are being sued, it's always a good idea to hire an attorney or get some legal assistance. If you cannot afford an attorney, a lot of people have handled their cases pro per or without a lawyer. Our articles are meant to provide basic information on handling litigation._ END
 TITLE: CFPB Financial Education Teaching Consumers About Investing CONTENT: How the CFPB is Furthering Financial Education to the Public\n------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 30, 2017_\nBenjamin Franklin once advised, \"An investment in knowledge pays the best interest.\"\nIn that same spirit, education is one of the chief aims of the Consumer Financial Protection Bureau (CFPB), the national agency tasked with protecting consumers of financial products and services.\nThe Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 mandated that the CFPB’s work include the improvement of financial literacy among American consumers. To that end, the CFPB engages in a long list of initiatives, highlights of which are outlined below.\nFinancial Education Research\n----------------------------\nAs stated in the CFPB’s 2014 Financial Literacy Annual Report:  \n\"According to a 2011 Government Accountability Office (GAO) report on financial literacy: 'Relatively few evidence-based evaluations of financial literacy programs have been conducted, limiting what is known about which specific methods and strategies are most effective.'\"\nThus, the CFPB’s financial education research program that focuses on:\n1.  Determining how to measure financial well-being and identifying the knowledge, skills, and habits associated with financially capable consumers.\n2.  Evaluating the effectiveness of existing approaches to improving financial capability.\n3.  Developing and evaluating new approaches.\n\"The CFPB is taking up this challenge to provide stronger evidence of what works, in order to support and guide efforts to improve the effectiveness and quality of financial education, and therefore improve consumer decision making and outcomes.\"\nAsk CFPB\n--------\nHave a question about a financial product or service? Turn first to the Ask CFPB section at ConsumerFinance.gov, a comprehensive database of information on a wide range of financial products and services, from student loans and banking accounts, to auto loans and mortgages.\nWith this tool, you can:\n*   Search with your own unique question.\n*   Search by category.\n*   Scroll through commonly-asked questions.\nThe system includes a filter for sorting results by most relevant, most helpful, most viewed, or most recently updated.\n### Know Before You Owe\nHow much is that debt really going to cost you? The CFPB wants you to know before you owe, particularly when it comes to some of the most costly of financial decisions – credit cards, mortgages, and student loans.\n#### Credit Cards\nNext time you're considering a credit card offer, take the time to look for the credit card agreement in the CFPB's database of from more than 300 card issuers. Study the agreement carefully to be sure you know the APR, balance transfer fees, cash advance fees, late payment fees, and more.\nThe CFPB has also created a simplified credit card agreement. While its use is not mandatory for credit card issuers, it will at least give you a good idea of what exactly you should be looking for in your agreement comparisons.\n#### Mortgages\nAfter more than 2 years of extensive research, the CFPB created simplified mortgage disclosure forms to help ensure borrowers understand what they’re getting into, particularly relative to risk factors, short-term and long-term costs, and monthly payments.\n#### Student Loans\nThe Financial Aid Shopping Sheet helps students and their families easily compare the cost of college from one school to the next. Though its use is voluntary, thousands of colleges and universities are already on board. So if you you're shopping around for schools, be sure to ask them for it.\nTraining For Housing Counselors\n-------------------------------\nIs your housing counselor up to speed? To ensure housing counselors know all the ins-and-outs of the latest mortgage servicing rules, the CFPB created the Guide to Mortgage Servicing Rules, covering:\n*   The 10-step loss mitigation process.\n*   Foreclosure prohibitions.\n*   Charges and fees that can be imposed on a borrower.\n*   The error resolution process.\n*   Borrower requests for information.\n*   Borrower requests for payoff statements.\nThe CFPB has also provided on-site and virtual training to thousands of housing counselors nationwide.\nFree Credit Score Initiative\n----------------------------\nDo you know your credit score? Since FICO now allows lenders to share credit scores with cardholders at no additional charge, the CFPB has urged the nation’s top credit card issuers to do so. Many of them are (and were even prior to the CFPB’s formal request).\n\"If scores are lower than expected or if they change over time, more consumers may take the initiative to request their credit reports,” says CFPB Director Richard Cordray. “This will allow them to address concerns, dispute errors or fraud-related entries, and improve negative aspects of their credit usage.\"\nPaying For College\n------------------\nIn addition to the Financial Aid Shopping Sheet (referenced above under Know Before You Owe), the Paying for College initiative includes CFPB's creation of Guides to Student Loans and Student Banking.\nLibraries as Hubs of Financial Education\n----------------------------------------\nThe Community Financial Education Project:\n*   Provides librarians with a collection of financial education resources and tools.\n*   Helps libraries identify and connect with local partners in their communities.\n*   Helps libraries build an online community for local financial education librarians.\n*   Provides helpful trainings for library staff and managers.\nOur libraries serve nearly the entire American population — close to 300 million people. That combined with the inherent nature of libraries as hubs of knowledge make them an obvious solution for improving financial education.\nK-12 Curriculum Recommendations\n-------------------------------\nWhat are we teaching our kids about finance? Infamously, the U.S. does not have a national standard for financial education. However, in 2013 the Consumer Financial Protection Bureau recommended K-12 finance education standards for the states.\nSpecifically, the CFPB recommends:\n*   Introducing key financial education concepts early and continue to build on that foundation consistently throughout the K-12 school years.\n*   Including personal financial management questions in standardized tests.\n*   Providing opportunities throughout the K-12 years to practice money management through innovative, hands-on learning opportunities.\n*   Creating consistent opportunities and incentives for teachers to take financial education training with the express intention of teaching financial management to their students.\n*   Encouraging parents and guardians to discuss money management topics at home and provide them with the tools necessary to have money conversations with their children.\nChanges like these seem long overdue. While there are all sorts of reasons Americans find themselves deep in credit card debt or, worse, filing bankruptcy, the state of our nation’s finance education is surely some reflection of that.\nOther Notable Initiatives\n-------------------------\n*   **Workplace Financial Education Program**, seeking to address key life events and decision points in employees’ financial lives; augmenting tools such as automatic enrollment in retirement plans with training and information sessions for employees and free financial planning assistance.\n*   **Ready, Set, Save!**, encouraging EITC-eligible taxpayers to pre-commit to saving a portion of their refund at the time their taxes are being prepared and they first learn the amount of their EITC credit and expected tax refund.\n*   **Money Smart for Older Adults (MSOA)**, an instructor-led curriculum for the FDIC’s Money Smart program to provide older consumers and their caregivers with information on preventing and responding to elder financial exploitation.\n*   **Military Financial Educator Forums** on consumer financial topics for service providers who deliver financial, educational, or legal counseling to service members and their families worldwide.\n*   **Bridges to Financial Security for Persons with Disabilities**, increasing access to financial education services for individuals with disabilities who are transitioning into the workforce.\n### Publications\nThe CFPB has created dozens of free publications for consumers, including:\n*   **Tips for Homebuyers: Make the Most of the New CFPB Mortgage Rules**, a one-page summary.\n*   **Shopping for a Mortgage? What You Can Expect Under Federal Rules**, an 18-page in-depth booklet.\n*   **Your Money, Your Goals**, a financial empowerment toolkit for social services programs.\n*   **Employer’s Guide to Assisting Employees with Student Loan Repayment:** A Toolkit for School Districts, Non-Profit Organizations, and Other Public Service Employers.\n*   **Managing Someone Else’s Money**, a four-part series that includes Help for Guardians of Property and Conservators, Help for Agents Under a Power of Attorney, Help for Representative Payees and VA Fiduciaries, and Help for Trustees Under a Revocable Living Trust.\n\"We have built the greatest system of economic liberty in the history of mankind,\" says CFPB Director Richard Cordray, \"but it will only endure if we are willing to take the necessary steps to strengthen that system from the bottom up, starting with the individual.\" END
 TITLE: CFPB Financial Education Teaching Consumers About Investing CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: Credit reports and credit scores – USA Credit Repair CONTENT: The score most commonly used by lenders is the FICO score, developed by Fair Isaac.\nWhen you get your reports, check for inaccuracies; the bureaus are required to investigate and correct them once you report them.\nThe bureaus may have different information about your credit history, which means your credit score can vary somewhat from bureau to bureau. So it’s important to view reports from all three.\n_CNNMoney (New York) First published May 28, 2015: 4:07 PM ET_\nGet Your Free Credit Credit and Credit Review Now  \n\\[salesforce form=”5″\\]\n\\[sg\\_popup id=”1″ event=”onload”\\]\\[\/sg\\_popup\\] END
 TITLE: CFPB Protects Bank Services and Products CONTENT: How the CFPB Protects Banking Services\n--------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 29, 2017_\nWhen it comes to your financial well-being, there is nothing more important than protecting and growing your money. You count on your bank to help you do just that, and it is the job of the CFPB to ensure they do it right.\nCFPB Regulates the Banking Industry\n-----------------------------------\nAs the government agency responsible for consumer protection in the financial sector, it is the responsibility of the CFPB to regulate banks and credit unions, including oversight, law enforcement, and the creation of new rules and regulations.\nCFPB Collaborates with Community Banks and Credit Unions\n--------------------------------------------------------\nBefore its official opening in July 2011, the CFPB met with representatives from community banks and credit unions in all 50 states to:\n*   Ensure the CFPB incorporates perspectives of small depository institutions into policy-making.\n*   Communicate relevant policy initiatives to community banks and credit unions.\n*   Work with community banks and credit unions to identify potential areas for regulatory simplification.\nAnd the CFPB continues seeking input from representatives of this industry via its Community Bank Advisory Council and Credit Union Advisory Council.\nCFPB Writes New Rules and Regulations\n-------------------------------------\nAs new issues arise, the CFPB has the authority to address them, writing new rules and regulations as deemed necessary.\nFor instance:\n*   Financial institutions are now required to disclose any and all credit card agreements they have with colleges and universities, the list of which the CFPB makes public in their online database. The CFPB has also asked these financial institutions to voluntarily share on their own websites any such agreements with schools.\n*   The CFPB launched an inquiry into mobile financial services, asking 35 questions of providers, researchers, regulators, and consumers. Specifically, the CFPB is concerned with mobile financial services as they relate to 1) access for the underserved, 2) real-time money management, 3) customer service, and 4) privacy concerns and data breaches.\nCFPB Accepts Banking Account and Services Complaints\n----------------------------------------------------\nDo you have a complaint about the opening, closing, or management of a checking or savings account? What about problems with deposits or withdrawals, debit cards, or fees?\nWhatever the issue relative to your banking account or service, the CFPB wants to hear about it.\nWhen you submit a complaint to the CFPB:\n*   Your complaint and supporting documentation is forwarded to the company for their review.\n*   The company has 15 days to respond to the CFPB and to you.\n*   The CFPB provides you with email updates on your complaint status.\nNote, the CFPB also shares complaints with state and federal law enforcement agencies, and sends a complaint report to Congress twice a year. Your complaint may also be posted to the Consumer Complaint Database (minus any personally-identifying information). END
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 TITLE: CFPB Protects Student Banking and Student Credit Cards CONTENT: CFPB Protects Young Consumers in Banking and Credit Cards\n---------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 30, 2017_\nWe expect colleges to look out for the best interest of their students. This not only includes curriculum and on-campus safety, but also their financial well-being. Unfortunately, many schools are falling short in the financial department, thus the importance of CFPB protection.\n**Conducts Inquiries into On-Campus Student Financial Services**\n----------------------------------------------------------------\nIn 2013, the CFPB conducted a 9-month inquiry into school-affiliated debit cards. What the agency discovered is that arrangements between colleges and banks are not only _confusing_ to college students, but costly too.\nStudents may presume their schools promote a specific bank because their products represent a good deal for them. However, in many cases, the only good deal is the one for schools getting paid to market bank checking accounts and debit cards to their students. Yet, while these schools make millions off the arrangement, expensive fees eat into students’ already limited funds.\nWhat’s worse is, some students don’t realize they have any other choice.\n### **Informs College Students of Their Banking Options**\nRather than settle for what’s most visible and convenient on campus, students are advised to weigh the pros and cons among all of their banking options. The CFPB provides a detailed side-by-side comparison of school-affiliated bank accounts, student checking accounts, and virtual checking accounts.\nFor instance:\n*   **_Virtual checking accounts_** may waive or reimburse ATM fees (even out-of-network), and offer online banking, bill-pay, and lots of mobile apps. However, if and when you want to speak with someone about your account, you have no in-person options.\n*   **_Student checking accounts_** may offer all of the same benefits of a virtual checking account, plus an in-person option. However, you could be looking at a monthly maintenance fee if you don’t meet certain criteria.\n*   **_School-affiliated bank accounts_** may offer all of the same benefits listed above, plus the ability for your debit card to double as your student ID and its use for discounts at local or on-campus businesses. However, you could be charged a whole host of fees, including one every time you use your debit card, as well as monthly maintenance fees and inactivity fees.\nWhat the CFPB most strongly advises is that you look into your options early so you can 1) set up a bank account as soon as possible, 2) avoid as many fees as possible, and 3) set up direct deposit with your school so that you have immediate access to your financial aid funds.\n**Maintains Database of School Credit Card Agreements**\n-------------------------------------------------------\nThough it’s tougher now for college students under 21 to get credit cards, it’s still possible provided you a) have a co-signer, or b) meet certain income criteria. This has drastically decreased banks’ focus on marketing credit card to college students (opting instead to focus on other student financial products, like debit cards).\nHowever, if your school _does_ have an agreement with a bank to market credit cards to its students, you deserve to know about it.\nTo that end, the CFPB maintains an impressive database of credit card agreements, searchable by school, credit card issuer, and location. It also includes the number of open accounts and how much each school received from the bank to market their credit cards to their students.\n**Accepts Student Banking Complaints**\n--------------------------------------\nDo you have a complaint about the opening, closing, or management of a checking or savings account? What about problems with deposits or withdrawals, debit cards, or fees?\nWhatever the issue relative to your student banking account or service, the CFPB wants to hear about it.\nWhen you submit a complaint to the CFPB:\n*   Your complaint and supporting documentation is forwarded to the company for their review.\n*   The company has 15 days to respond to the CFPB and to you.\n*   The CFPB provides you with email updates on your complaint status.\nNote, the CFPB also shares complaints with state and federal law enforcement agencies, and sends a complaint report to Congress twice a year. Your complaint may also be posted to the Consumer Complaint Database (minus any personally-identifying information). END
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 TITLE: Learn How to File a Lawsuit in Small Claims Court CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: October 26, 2017_\nThe procedures of filing a lawsuit in small claims varies from county to county and state to state. Below, are just general guidelines so make sure to check the rules of the court in the area where you are going to be filing the lawsuit. Additionally, in some states like Georgia, small claims court is called magistrate court.  Visit this page for a state-by-state listing.\nFiling a Lawsuit in Small Claims Court\n--------------------------------------\nFirst of all, most courts want to see that you attempted to collect this money before going to court, that is, you have taken all reasonable measures to collect before getting the courts involved.\nUsually, by choosing a Small Claims Court, you waive all right to a jury trial. Furthermore, it is only in very specific instances that you have the right to appeal to a higher court if the Clerk does not find in your favor. Defendants, however, always have the right to appeal.\nYou need to go down to your county courthouse and ask the clerk for the procedure in your county. Fill out the documents they give you. The form may help you clearly outline your complaint. This is a good thing to do, especially if you are nervous about presenting your case or are afraid you might forget important facts. If county will not let you file this form (doubtful), then you can take it with you as your own private notes. You must pay all the filing fees before your paperwork will be processed.\nIn some counties, all you will have to do is sign the form in the presence of the clerk; in others, you will need to get a judge's signature.\nOnce your paperwork is filled out properly, you will be given a hearing date, trial date, or response date will be entered by the clerk. You will either be given the information then or by mail, depending on the court's local procedures.\nIt is the plaintiff's responsibility to accurately identify the defendant, provide a proper address and, if possible, provide a phone number. You must furnish the precise legal name and address of the party you are suing. For example, S & J Construction, Inc. You may sue any individual, business, partnership, or corporation. The legal name of a business which is not a corporation may be determined by contacting the clerk in the city or town hall and requesting business certificate information. Another suggestion is contacting the your state Corporation Commission to find out the exact name.\nHow much does it cost? All states have different filing fees, but generally the cost is between $10 and $50, with some businesses paying a slightly higher fee.\n### Serving the Notice\nIn order for the judgment to be binding, the party being sued must be properly served. Depending on your state, either the court will serve the notice, or leave it up to you. It is vital to make sure the party is served properly.\nIf your state makes it your responsibility to serve the party you are suing, ask for a list of the qualified people or services you can use to serve the paperwork.\n### Preparing For Trial\nAs mentioned in the previous section, you can help yourself by being well prepared.\nTo prepare for the trial, collect all papers, photographs, receipts, estimates, canceled checks, or other documents that concern the case. It may be helpful to write down ahead of time the facts of the case in the order that they occurred. This will help you to organize your thoughts and to make a clear presentation of your story to the judge.\nIt is also a good idea to sit through a small claims court session before the date of your hearing. This will give you first-hand information about the way small claim cases are heard.\n### What Happens At The Trial?\nWhen you arrive at the court, report to the courtroom in which your case has been assigned.\nWhen your case is called in the courtroom, come forward to the counsel table and the judge will swear in all the parties and witnesses.\nDon't be nervous and remember that a trial in small claims court is informal.\nThe judge will ask the plaintiff to give his or her side first, then will ask the defendant for his or her explanation. Be brief and stick to the facts. The judge may interrupt you with questions, which you should answer straight out and to the best of your knowledge.\nBe polite, not just to the judge, but also to your opponent. Do not interrupt. Whatever happens, keep your temper. Good manners and even tempers help the fair, efficient conduct of the trial, and make a good impression.\nAfter both sides have been heard by the judge, he or she will normally announce the decision right then and will sign and hand the parties a judgment.\n### What If My Opponent Does Not Appear For Trial?\nIf the defendant fails to appear for trial, the plaintiff will be granted judgment for the amount of the claim proven in court, plus costs, provided the plaintiff can show proof of service.\nIf the plaintiff fails to appear, the claim is dismissed; however, generally the court will permit the plaintiff to start over, if good cause for the non-appearance is shown.\n### Can You Appeal If You Lose?\nYou can always appeal to a higher court, usually the superior court in your state. If you plan on doing this, there is usually a time limit in which to file, so make sure you file your paperwork in a timely manner. Court fees for Superior Court are different than small claims, again, your county courthouse clerk can answer questions about your filing fees and procedures.\nIf you agreed to arbitration, meaning you did not see a judge, but agreed to mediation by a lawyer (in some states with heavy workloads like California, this happens frequently when you want to expedite the hearing), you ability to appeal may be limited. You need to check out these types of things before proceeding.\n### How Do I Collect My Money?\nA money judgment in your favor does not necessarily mean that the money will be paid. The Small Claims Court does not collect the judgment for you.\nIf no appeal is taken and the judgment is not paid within 30 days, or the time set by the court in the payment plan, that a transcript of the judgment be entered into the civil docket of the court. At that time you may proceed with a method of collection such as garnishment of wages, bank accounts, and other monies of the defendant or an execution may be issued on cars, boats, or other personal property of the judgment debtor. Remember, the clerks cannot give you legal advice. You may need the assistance of an attorney or collection agency at this point.\nWhen the judgment has been paid in full you must send written notice to the district court that the judgment has been satisfied.\n### How Do I Enforce a Judgment?\nIf your judgment calls for the creditor to remove or update a listing to your satisfaction, you can send a copy of it into the credit bureaus as part of supporting documentation when you request them to update your listing. Send in your credit dispute via regular mail to each of the credit bureaus. This should be more than enough to get the listings corrected.\n_Please Note: **WE ARE NOT ATTORNEYS**. If you are being sued, it's always a good idea to hire an attorney or get some legal assistance. If you cannot afford an attorney, a lot of people have handled their cases pro per or without a lawyer. Our articles are meant to provide basic information on handling litigation._ END
 TITLE: CFPB Protects Servicemen from Financial Frauds, Benefit Scams CONTENT: CFPB Helps Servicemembers with Financial Issues\n-----------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 30, 2017_\nEvery single one of us needs consumer protection relative to personal finance products and services. However, those serving in our military not only have unique consumer rights afforded to them, but are also particularly vulnerable to violations of these rights.\nThus, the Consumer Financial Protection Bureau's creation of the Office of Servicemember Affairs.\nAs stated on the CFPB website, the Office of Servicemember Affairs exists:\n*   \"To ensure that military personnel and their families have a voice at the Consumer Financial Protection Bureau. Military life can have some extra challenges that can sometimes have powerful financial repercussions.\"\nHere's how the CFPB aims to help.\nResponds to Complaints About Financial Products and Services\n------------------------------------------------------------\nIf you believe your consumer rights are being violated, the CFPB wants to hear about it.\nThe CFPB accepts complaints on any product or service relative to the financial industry, including debt collection, student loans, payday loans, mortgages, credit cards, credit reporting, auto loans, money transfers, and banking issues.\nOf all the categories, complaints by servicemembers are most often relative to debt collection practices.\nThe CFPB is particularly concerned with debt collectors illegally:\n*   Contacting a servicemember's military chain of command.\n*   Threatening punishment under the Uniform Code of Military Justice (which requires servicemembers maintain good finances).\n*   Threatening to have a servicemember reduced in rank.\n*   Threatening to have a servicemember's security clearance revoked.\nThe CFPB is also concerned about servicemember violations of consumer rights relative to:\n*   Student loans, as servicers frequently provide incorrect information to servicemembers, such as that protections only apply when they are deployed (not true).\n*   Payday loans, as the CFPB believes lenders routinely skirt the Military Lending Act by lending just outside its narrow parameters (which prohibits interest rates above 36 percent).\n*   Mortgages, as servicers routinely fail to provide accurate and timely information about available assistance options when a military family gets Permanent Change of Station (PCS) orders.\nOnce the CFPB receives it, your complaint and any supporting documentation is forwarded on to the company for their review. The company has 15 days to respond to the CFPB and to you.\nDuring this 15-day period, you can expect to receive from the CFPB email updates on your complaint status. You can also check the status online at ConsumerFinance.gov.\n### Links You to Helpful Financial Resources\n**Saving Money**\n*   Personal Financial Management Program — Offering servicemembers personalized financial planning assistance.\n*   Savings Deposit Program — Providing guaranteed 10 percent interest on savings up to $10,000 while deployed.\n*   Thrift Savings Plan — Retirement savings and investment plan offering an annual expected return of 7 percent.\n**Paying for Education**\n*   Montgomery GI Bill\n*   Post 9\/11 GI Bill\n*   VEAP\/REAP\n*   Loans and Grants\n*   Scholarships\n**Emergency Assistance**\n*   Air Force Aid Society\n*   Army Emergency Relief\n*   Coast Guard Mutual Assistance\n*   Navy-Marine Corps Relief Society\n*   American Red Cross Financial Assistance for Servicemembers\n**Other Helpful Resources**\n*   General information on military pay\n*   Tax information\n*   Legal assistance\nThe CFPB also provides numerous links to various external resources on strategic money management.\n### Provides Tips On Protecting Your Finances\n**Avoiding VA Benefit Scams** — If you have yet to sign up for your VA benefits, be leery of anyone offering to help via phone or at your doorstep. They're scammers, as the VA does not participate in telemarketing and rarely makes house calls. What these scammers want is to steal your personal information and, subsequently, your identity, good credit, and money. Sign up for the real deal via the Department of Veteran Affairs.\n**Avoiding High Credit Card Rates** — If you have a credit card balance prior to entering into active duty, your credit card company cannot charge you more than 6 percent on your pre-active duty balance. (Note, the 6 percent cap does not apply to new credit card debt acquired while active.) So let your credit card company know as soon as you enter active duty. If they fail to comply with the 6 percent cap, submit a complaint to the CFPB.\n### Publishes Free Financial Guides\nFind links and details to all of the aforementioned resources at ConsumerFinance.gov. END
 TITLE: Notice of Negative Information in FACT Act CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: October 21, 2017_\nOne of the interesting provisions of the FACT Act is help with identity theft by way of the Notice of Negative Information Provision, which is covered in section 623(A)(7).\nThe FACT Act requires creditors to give an early warning notice, which is to alert you that something is amiss with an account. However, the notice is not a substitute for your own close monitoring of your credit reports, bank accounts, and credit card statements.  A financial institution that extends credit must send you a notice no later than 30 days after negative information is furnished to a credit bureau. Negative information includes late payments, missed payments, partial payments, or any other form of default on the account.\nDoes This Apply Only to Accounts With a Bank?\n---------------------------------------------\nNo. A financial institution has the same meaning as under the Gramm-Leach-Bailey Act. In addition to a bank, this can mean a merchant that extends credit to you or a collection agency that routinely reports information to a credit bureau.\n### Will You Get a Notice Every Time the Account is Delinquent?\nIt's a one-time notice as long as the late payment or other negative information has to do with the same account. After the one-time notice, the financial institution can continue to report negative information about the same account. For example, if you are late on your credit card payment three months straight, you are only entitled to the notice either before or within 30 days after the first late payment is reported.\n### Will You Receive a Separate Notice or Registered Letter?\nYou will almost certainly not receive a registered letter. FACT Act requires the financial institution to give you this notice along with any notice \"of default, any billing statement, or any other materials provided to \\[you\\].\" The one place the notice cannot appear is in the Truth in Lending Act notice you get when you first open an account. The notice must be clear and conspicuous, but need not be in bold or enlarged type.\n### What Does the Notice Look Like?\nThe Federal Reserve Board was directed by Congress to write sample notices for financial institutions. Below are sample notices adopted by the Federal Reserve Board are short and to the point.\n**Notice before negative information is reported.**  We may report information about your account to credit bureaus. Late payments, missed payments, or other defaults on your account may be reflected in your credit report.\n**Notice after negative information is reported.**  We have told a credit bureau about a late payment, missed payment or other default on your account. This information may be reflected in your credit report.\n### If the Original Creditor Does Not Notify You of This Negative Information, Are They in Violation of the FCRA?\nAbsolutely. You may sue the original creditor in court (or negotiate to merely have the negative information removed) for $1,000 per the terms of the FCRA. END
 TITLE: CFPB Protects International Money Transfers CONTENT: How the CFPB is Protecting International Money Transfers\n--------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 30, 2017_\nWhatever your reason for wiring money to another country, it is obviously an important one, particularly in an emergency situation. So the last thing you need to worry about is a confusing or difficult remittance process. Thus, the CFPB's oversight of international money transfers, helping to ensure the process brings you less headache and more peace of mind.\nCFPB Enforces Remittance Transfer Rules\n---------------------------------------\nTo protect consumers of international money transfers, the CFPB created the Remittance Transfer Rule, an amendment to Regulation E in the Electronic Funds Transfer Act.\nThis amendment was one of many financial reform requirements stemming from the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.\nThe CFPB not only wrote the language of the Remittance Transfer Rule, but is also tasked with its enforcement.\nThe Remittance Transfer Rule requires that remittance transfer providers do as follows during the transfer of international money orders.\n1) Disclose to consumers information about:\n*   Exchange Rate\n*   Fees and Taxes\n*   Amount of money that will be delivered \n*   Date the money will be available \n*   Right to cancel the transfer \n*   What to do in the event of an error \n*   How to submit a complaint\n2) Allow consumers at least 30 minutes after payment to cancel a remittance if it has not yet been received, and making good on the money back guarantee regardless of the reason for cancellation.\n3) Investigate and correct errors that are reported within 180 days of the transfer date and taking responsibility for mistakes made by their agents.\n4) Complete the investigation of errors within 90 days of the complaint.\n5) Report the results of the investigation to the consumer.\nNote, institutions that process 100 or fewer money transfers are not subject to these new regulations, as they are not providing transfers \"in the normal course of business.\"\n### CFPB Writes New Rules and Regulations\nAs new issues arise, the CFPB has the authority to address them, writing new rules and regulations as deemed necessary.\nFor instance, relative to money transfers, the CFPB proposed in early 2014 that it should be able to oversee money transfers made by non-banks. Every year, 7 million U.S. households send international money transfers through non-bank entities. This represents 150 million individual transfers totaling an estimated $50 billion.\nThe proposed rule would only apply to non-banks making more than 1 million international money transfers per year, which would affect as many as 25 non-bank entities, including Western Union and MoneyGram.\nCFPB Accepts Money Transfer Complaints\n--------------------------------------\nDid a remittance transfer provider fail to provide you with the proper disclosure information?\nDid they not allow you to cancel a transfer within 30 minutes after payment?\nDid they fail to investigate an error within 90 days of you reporting it?\nWhatever the issue relative to your money transfer, the CFPB wants to hear about it. When you submit a complaint to the CFPB:\n*   Your complaint and supporting documentation is forwarded to the company for their review.\n*   The company has 15 days to respond to the CFPB and to you.\n*   The CFPB provides you with email updates on your complaint status.\nNote, the CFPB also shares complaints with state and federal law enforcement agencies, and sends a complaint report to Congress twice a year. Your complaint may also be posted to the Consumer Complaint Database (minus any personally-identifying information). END
 TITLE: How the CFPB Provides Credit Card Protection CONTENT: Learn How the CFPB Protects Consumers in the Payment Card Market\n----------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 30, 2017_\nIs there any financial product you use more than a credit, debit, or prepaid card? Likely not, thus the importance of strict regulation of the payment card market — one of many financial products regulated by the Consumer Financial Protection Bureau (CFPB).\nAdministers CARD Act of 2009\n----------------------------\nMost notably, the CFPB administers the CARD Act of 2009, enacted to \"establish fair and transparent practices related to the extension of credit,\" regulating both the underwriting and pricing of credit card accounts.\nMajor areas of the CARD Act's focus and, thus, the CFPB's responsibility, are as follows, including examples of each:\n*   **Interest Rate Restrictions.** For instance, credit card issuers cannot raise interest rates retroactively. Also, they cannot raise rates going forward during the first 12 months the account is open.\n*   **Fee Restrictions.** For instance, credit card issuers can only charge over limit fees if the card holder provides prior approval of them. Also, if a due date falls on a weekend or holiday, payment cannot be assessed a late fee as long as it is received by the next business day.\n*   **Student Credit Card Restrictions.** For instance, credit card issuers cannot issue a card to anyone under 21 years of age unless they can a) verify proof or income, or b) get a co-signer on the card. Also, credit card issuers can no longer entice students with free gifts in exchange for a credit card application.\n*   **Gift Card Restrictions.** For instance, gift cards cannot expire for at least 5 years from the date of activation. Also, gift cards cannot be assessed inactivity fees unless it has been a full 12 months since the last transaction.\n*   **Billing Cycle and Payment Allocation Restrictions.** For instance, credit card issuers can no longer calculate interest charges on both the current balance and the previous month's balance.\n*   **Disclosure Statement Guidelines.** For instance, credit card issuers must disclose to borrowers how long it will take them to pay off their balance if they only make the minimum payment.\nIt is the job of the CFPB to not only enforce these rules, but also to track their progress.\n### Design New and Improved Card Agreements and Disclosures\nShopping around for the right credit or prepaid card is challenging enough. But further confusing the process are agreements and disclosures that make side-by-side comparisons difficult.\nThe CFPB's simpler, streamlined credit card agreements and prepaid disclosure forms not only make comparison shopping easier, but also provide a clearer picture in keeping with the CFPB's \"know before you owe\" philosophy.\nThat said, their use is not mandatory. But, at the very least, noting what's included on the CFPB forms will help consumers know the key content to look for in other forms.\n### Maintains Database of Credit Card Agreements\nWhether you already have a credit card in mind, or you're just shopping around, the CFPB credit card database is a great go-to tool.\nAgreements of more than 300 credit card issuers are included in the database, which you can search by issuer or by specific text.\nAccepts Credit Card Complaints\n------------------------------\nDo you have a billing dispute with your credit card issuer? Do you believe an increase in your interest rates is in violation of your rights? Do you suspect fraudulent transactions? Whatever the issue relative to your credit card, the CFPB wants to hear about it.\nWhen you submit a complaint to the CFPB, the complaint and any supporting documentation is forwarded on to the company for their review. Once the CFPB submits your complaint, the company has 15 days to respond to the CFPB and to you. During this 15-day period, you can expect to receive from the CFPB email updates on your complaint status.\nNote, the CFPB also shares complaints with state and federal law enforcement agencies, and sends a complaint report to Congress twice a year. Your complaint may also be posted to the Consumer Complaint Database (minus any personally-identifying information).\nWrites New Rules and Regulations\n--------------------------------\nAs new issues arise, the CFPB has the authority to address them, writing new rules and regulations as deemed necessary.\nFor instance, relative to the payment card market, the CFPB has ruled that:\n1.  Employers cannot require their employees to receive their paychecks via debit cards.\n2.  If colleges and universities are making money off student ID debit cards, they must disclose the school-bank partnership on their website.\n### Seeks Input From Consumers\nBeyond complaints, the CFPB solicits feedback from consumers on the agency's Federal Register notices. The CFPB website maintains an exhaustive list of open notices, where you can leave comments, as well closed notices, where you can read past comments as well. END
 TITLE: How the CFPB Provides Credit Card Protection CONTENT: ### Useful Links\n*   FREE Credit Repair Letters\n*   How to Settle Your Debts\n*   Understanding Debt Validation\n*   What's the Statute of Limitations on Debt\n*   Order Your Credit Reports\n*   FREE Bankruptcy Evaluation\n### Latest Blog Posts\n*   Affirmative Defenses That Don’t Work\n*   New Rules Implemented by The Consumer Financial Protection Bureau (CFPB) Clarify the Way Debt Collectors May Deal with Consumers\n*   How Will Unemployment Affect My Credit? END
 TITLE: CFPB Regulates Payday Loan Industry CONTENT: How the CFPB Protects Consumers Using Payday Loans\n--------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 30, 2017_\nThough they're advertised as a way to help consumers make ends meet until their next payday, cash advances from payday lenders almost always do their borrowers more harm than good. Fortunately, the Consumer Financial Protection Bureau (CFPB) exists to supervise financial products and services, payday loans among them.\nFor 20 years, payday lenders operated with virtually no oversight. That is until January 2012 when the CFPB assumed formal supervision of the payday loan industry.\nIn this role, the CFPB is tasked with ensuring that payday lenders are in line with rules and regulations. If and when they are found in violation, it is the CFPB's job to step in.\nFor instance, the CFPB has taken enforcement action against two of the largest payday lenders in the country:\n*   In November 2013, the CFPB ordered Cash America to refund $14 million to borrowers for the alleged robo-signing of court documents in debt collection lawsuits, as well as violations of the Military Lending Act in loans to servicemembers.\n*   In July 2014, the CFPB ordered ACE Cash Express to refund $5 million to borrowers for the alleged violation of debt collection practices, including excessive phone calls, sharing details of loans with employers and relatives, and threatening to charge collection fees and report to the credit bureaus, both of which company policy states they cannot do.\nBoth Cash America and ACE Cash Express were also fined $5 million each, which goes into the CFPB Civil Penalty Fund.\n### CFPB Conducts Studies of the Payday Loan Industry\nIt's no secret payday loans are an expensive last resort for consumers who can least afford them. But nothing can shock sense into consumers and lawmakers like hard numbers that speak to just how dangerous these debts can be.\nFor instance, the CFPB's March 2014 study found that:\n*   Over 80 percent of payday loans are rolled over or followed by another loan within 14 days (i.e., renewed).\n*   Half of all loans are in a sequence at least 10 loans long.\n*   For more than 80 percent of the loan sequences that last for more than one loan, the last loan is the same size as or larger than the first loan in the sequence.\n*   Monthly borrowers are disproportionately likely to stay in debt for 11 months or longer.\n*   Most borrowing involves multiple renewals following an initial loan, rather than multiple distinct borrowing episodes separated by more than 14 days.\nThis data can be used to educate consumers, as well as to inform the writing of new rules and regulations that can better protect consumers from this too often devastating cycle of debt.\n### Educates Consumers on Payday Loans\nThe CFPB maintains an extensive database of information on all sorts of consumer financial products and services in its Ask CFPB section.\nOn the subject of payday loans, you'll find answers to questions like:\n*   **_\"Is a payday lender required to offer me the lowest rate available?\"_**  \n    Answer: No\n*   **_\"I heard that taking out a payday loan can help rebuild my credit or improve my credit score. Is this true?\"_**  \n    Answer: Payday loans generally are not reported to the three major national credit agencies.\n*   **_\"My payday lender I could be arrested if I failed to pay back my debt. Is that true?\"_**  \n    Answer: No\n*   **_\"Can a payday lender garnish my wages?\"_**  \n    Answer: Your wages usually can be garnished only as the result of a court order.\n*   **_\"A payday lender told me it doesn't make loans to consumers in my state. Aren't payday loans available everywhere?\"_**  \n    Answer: No. Some states have laws against them.\nIf you have a question, go to Consumer Finance Protect Bureau, click on \"Get Assistance\" then select \"Ask CFPB\" and search \"payday loans.\"\nCFPB Accepts Payday Loan Complaints\n-----------------------------------\nHave you had trouble with a payday loan? Unexpected fees or interest? Unauthorized or incorrect charges to your bank account? Payments not being credited to your loan? Problems contacting the lender? Receiving a loan you did not apply for? Not receiving money after you applied for it?\nWhen you submit a complaint to the CFPB:\n*   Your complaint and supporting documentation is forwarded to the company for their review.\n*   The company has 15 days to respond to the CFPB and to you.\n*   The CFPB provides you with email updates on your complaint status.\nNote, the CFPB also shares complaints with state and federal law enforcement agencies, and sends a complaint report to Congress twice a year. Your complaint may also be posted to the Consumer Complaint Database (minus any personally-identifying information).\nWhatever the issue relative to your payday loan, the CFPB wants to hear about it. END
 TITLE: CFPB Protects Student Loan Borrowers CONTENT: How the CFPB Protect Student Loan Borrowers\n-------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 30, 2017_\nTaking on a student loan is one of the biggest financial decisions you will ever make. Don’t do it lightly and never before exhausting every other alternative. The CFPB can help, providing resources aimed at minimizing student loan debt, and ensuring your consumer rights are protected under every applicable law. Here’s how.\nFinancial Aid Shopping Sheet\n----------------------------\nThe CFPB developed the Financial Aid Shopping Sheet as a tool to help students and their families easily compare the cost of college from one school to the next. \nThough its use is voluntary, thousands of colleges and universities are already providing it to prospective students. So if you're shopping around for schools, be sure to ask them for it.\nThe Financial Aid Shopping Sheet provides a detailed breakdown of the school’s:\n*   Estimated cost of attendance\n*   Grants and scholarships\n*   Net cost\n*   Payment options\nThe Financial Aid Shopping Sheet also includes other school-specific information, like the percentage of full-time students who graduate within 6 years, percentage of students who default on their student loans, and median borrowing rate for federal loans.\nCustomizable Tool for Comparing Financial Aid Offers\n----------------------------------------------------\nOnce you’ve compared Financial Aid Shopping Sheets, and narrowed it down to the top contenders, use the CFPB’s customizable online tool for comparing up to three schools in one report, including a side-by-side breakdown of the:\n*   Cost of attendance\n*   Financial aid offer\n*   Debt at graduation\n*   Monthly payments\n*   School’s graduation rate\n*   School’s loan default rate\n*   School’s median borrowing\nClick here to access this interactive tool.\nStudent Loan Options\n--------------------\nBefore applying for a student loan, make sure you know what you’re getting into. To that end, the CFPB addresses key differences among all of your student loan options, like:\n*   Differences between federal loans and private loans relative to repayment options, interest rates, eligibility, and loan limits. \n*   Differences between subsidized and unsubsidized student loans.\n*   Federal loan options (Perkins Loans, Direct Loans, and Parent of Grad PLUS loans).\n*   Private loan options (state agency loans, traditional bank loans, school loans).\n*   How often student loan rates change.\nYou can find answers to other student loan questions in the CFPB’s searchable online database.\nRegulation of Student Loan Industry\n-----------------------------------\nTo ensure that borrowers are protected, the CFPB oversees the student loan industry via studies, reports, investigations, legal actions, and new rules and regulations, as necessary.\nThis oversight includes, but is not limited to, the following.\n#### Predatory Lending Practices\nIn February 2014, the CFPB took action against ITT Technical Institute for predatory lending practices, alleging that ITT set students up for failure with its zero-interest private “Temporary Credit” loans, with terms that were nearly impossible to meet.\n#### Payment Processing Issues\nIn October 2013, the CFPB reported on its investigation into payment processing problems, including poor communication about payment application, snags when making small “good faith” payments, access to payment histories, lost payments, and more.\nThe report also included recommendations for how student loan servicers can do things better, like notifying borrowers when the servicing of their loan changes hands, not only before the transfer, but also afterwards; providing borrowers with timely payoff statements; and processing payments the same day they are made.\nIn February 2014, the CFPB released responses from student loan servicers about how they apply excess payments across multiple student loans. Since then, some servicers have revised their payment allocation procedures. For instance, in the event of an excess payment coming through with no allocation instructions, many more servicers are now automatically applying it to the borrower’s highest interest loan.\n#### Service Member Rights\nIn August 2013, the CFPB investigated complaints from service members that some private student loan servicers were violating the law that says any existing private loans they have for school should be cut to no more than 6 percent upon request. \n#### Affordability of Private Student Loans\nIn May 2013, the CFPB published a report on the affordability of private student loans based on more than 28,000 complaints from borrowers, including too high monthly payments, too high interest rates, no flexible payment options, no refinancing options, and lack of money to put toward housing or a car. \n#### Co-Signer Release Advisory\nIn April 2014, the CFPB advised private student loan co-signers to request a student loan release, as lenders automatically default student loans – _in good standing_ – simply because of a change in the co-signer’s situation.\nStudent Loan Complaints\n-----------------------\nWhether you’re having problems during the student loan application process or with the logistics of paying it back, the CFPB wants to hear about it.\nWhen you submit a complaint to the CFPB:\n*   Your complaint and supporting documentation is forwarded to the company for their review.\n*   The company has 15 days to respond to the CFPB and to you.\n*   The CFPB provides you with email updates on your complaint status.\nNote, the CFPB also shares complaints with state and federal law enforcement agencies, and sends a complaint report to Congress twice a year. Your complaint may also be posted to the Consumer Complaint Database (minus any personally-identifying information). END
 TITLE: Small Claims Court Information by State CONTENT: List of Links to Small Claims Court Information by State\n--------------------------------------------------------\n###### Written by: Kristy Welsh\nSince this information changes periodically, we have found a wonderful legal resource you can use.  We have found a very good website, FreeAdvice, and there is information on each and every state. It shows the maximum amount you can sue for in small claims court, while providing links to the State Attorney General's office and a link to their court website.\nWe hope you find this link useful - END
 TITLE: Case Law Reference - Credit Law Court Rulings CONTENT: ###### Written by: Kristy Welsh\nCase Law Reference and Links to FCRA and FDCPA Information\n----------------------------------------------------------\nDon't know which case to cite when trying to prove your point? This list was provided by a readers on our discussion boards, along with our own through research. Many of these rulings have been used to file a civil complaint against some creditors and the CRAs.\nCornell University Law School\nCalifornia Legislative Information\nLexis Total Research System\nWestlaw\nFindLaw\nGoogle Scholar\nCalifornia Courts\n### Other Case Law Information\nThe following two links list extensive court case rulings regarding credit issues.\n*   Discussion Board Resources - Case Law FDCPA\n*   Discussion Board Resources - Case Law FCRA\n### Specific Case Law\nWhat if someone purchases the debt from the original creditor? Yep, they fall under the FDCPA.\nAn FDCPA claim \"has nothing to do with whether the underlying debt is valid\". An FDCPA claim concerns the method of collecting the debt. Spears v. Brennan\nIs the reporting period extended if  \n(A) the original creditor sells or transfers the account to another creditor,  \n(B) the consumer responds to post charge-off collection efforts by making a payment on the debt, or (C) the consumer disputes the account with a CRA? Does it matter whether the 7-year period has expired when any of these events occurs? **No.**\nYou can sue the creditor who reports inaccurately as seen in Nelson v. Chase Manhattan. Also, this is now part of the newly revised FCRA.\nReporting on your credit report is considered collection activity: Boatley vs. Diem Corporation\nRichardson vs. Fleet, Equifax, Experian, TransUnion and Portfolio Recovery Associates\nRepossession Law: and whether your state has implemented it: .\nOther Case Law  \nDiscussion Board Resources - Case Law\nCourt procedure in your state: USLegal SearchLaw END
 TITLE: How the CFPB Protects Consumers Getting an Auto Loan CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: August 29, 2017_\nIt’s challenging enough getting a good deal on a car under the best of circumstances. But throw into the mix deceptive or discriminatory lending and borrowers don’t have a chance. That’s why the work of the Consumer Financial Protection Bureau (CFPB) is so essential — providing much-needed industry oversight and consumer education.\n**CFPB Regulates Auto Lenders**\n-------------------------------\nWhile the agency has no jurisdiction over auto _dealers_, the CFPB does have the authority to regulate auto _lenders_ (with the exception of non-bank lenders, though proposed regulation is pending). This is an important distinction, as oversight of auto lending enables the agency to guard against discriminatory and\/or deceptive auto lending practices.\nFor instance, in March 2013, the CFPB released a bulletin urging auto lenders to mind their Ps and Qs when it comes to the dealer markup policies associated with indirect auto lending, as it often leads to discriminatory practices. Here’s how it works.\nAuto dealers often finance loans indirectly through third-party lenders. While the indirect lender may quote the dealer one interest rate to finance the loan – known as the buy rate – the dealer may be permitted to markup the interest rate it offers to the borrower. Then both the dealer and the lender make a profit off the marked up interest.\nAs stated in the bulletin, here’s the problem with that arrangement:\n“Because of the incentives these policies create, and the discretion they permit, there is a significant risk that they will result in pricing disparities on the basis of race, national origin, and potentially other prohibited bases.”\nAnd that is a violation of the Equal Credit Opportunity Act (ECOA).\nTo guard against discriminatory lending practices, the CFPB bulletin urges indirect auto lenders to do one of two things:\n1.  Impose controls on dealer markup and compensation policies, or otherwise revise dealer markup and compensation policies, and monitor and address the effects of those policies, or\n2.  Eliminate dealer discretion to mark up buy rates and instead fairly compensate dealers using another mechanism, such as a flat fee per transaction\n**CFPB Takes Enforcement Action**\n---------------------------------\n**_Deceptive Practices_**\nIn June 2013, the CFPB ordered U.S. Bank and Dealers’ Financial Services to pay servicemembers $6.5 million for deceptive marketing and lending practices.\nU.S. Bank finances subprime auto loans to servicemembers. This is known as the MILES program, or Military Installment Loans and Educational Services. Dealers’ Financial Services is the company that handles the customer service arm of the operation, from marketing to loan processing.\nThe problem is that the two companies failed to disclose necessary information to borrowers regarding the military allotment system. While servicemembers understood payments would be deducted from their paychecks, they were not made aware of allotment fees or the correct payment schedule.\nIn response, the CFPB ordered U.S. Bank to pay $3.2 million and Dealers’ Financial Services to pay $3.3 million to more than 50,000 affected servicemembers.\nLearn how the CFPB helps servicememembers with other financial issues.\n**_Discriminatory Practices_**\nIn December 2013, the CFPB took its first enforcement action against an indirect auto lender for discriminatory lending practices.\nAlly is one of the largest indirect auto lenders in the country, financing loans through more than 12,000 auto dealers across the country. Unfortunately, a CFPB investigation found that Ally’s dealer markup policies unfairly discriminated against minorities.\nIn response, the CFPB ordered Ally to pay a $98 million fine -- $80 in restitution, as well as an $18 million civil penalty. Ally was also ordered to take steps aimed at preventing discriminatory lending in the future, such as stricter controls on dealer markup policies, or the elimination of them entirely.\n**CFPB Educates Consumers on Auto Loans**\n-----------------------------------------\nDo you have a question about auto loans?\nCheck out the _Ask CFPB_ section at ConsumerFinance.gov, a comprehensive database that includes a section on auto loans.\nYou’ll find answers to questions like:\n*   What is a buy rate?\n*   What is risk-based pricing?\n*   What is mandatory binding arbitration?\n*   What is forced-play insurance?\n*   What is a loan-to-value ratio?\nYou can scroll through the most commonly asked questions or conduct your own unique search, sorting by most relevant, most helpful, most viewed, or most recently updated.\n**CFPB Accepts Auto Loan Complaints**\n-------------------------------------\nDo you have a complaint about an auto lender’s marketing tactics? Did you have a problem with the application process? Do you believe you were discriminated against? If you already have a loan, have you had an issue with the processing of payments? What about a violation of your rights in the event you were unable to pay?\nWhatever the issue relative to your auto loan, the CFPB wants to hear about it.\nWhen you submit a complaint to the CFPB:\n*   Your complaint and supporting documentation is forwarded to the company for their review.\n*   The company has 15 days to respond to the CFPB and to you.\n*   The CFPB provides you with email updates on your complaint status.\nNote, the CFPB also shares complaints with state and federal law enforcement agencies, and sends a complaint report to Congress twice a year. Your complaint may also be posted to the Consumer Complaint Database (minus any personally-identifying information). END
 TITLE: CFPB Protects Consumers in the Housing Market CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: August 30, 2017_\nOf all the financial decisions you make over the course of a lifetime, deciding to buy a home likely tops the list. For this reason, the Consumer Financial Protection Bureau (CFPB) is particularly invested in oversight of the mortgage market.\n**CFPB Regulates the Mortgage Industry**\n----------------------------------------\nNumerous rules and regulations exist to protect consumers in the mortgage market. If and when these rights are violated, it is the job of the CFPB to step in.\nFor instance:\nIn May 2014, the CFPB fined RealtySouth $500,000 for neglecting to disclose that the company it was recommending for title and closing services one of its own affiliates.\nIn July 2014, the CFPB joined with the FTC in taking action against nine mortgage assistance relief servicers. In what was known as Operation Mis-Modification, the agencies discovered these servicers were engaged in illegal practices, like collecting up-front fees and promising foreclosure prevention.\nIn August 2014, the CFPB took action against mortgage lender Amerisave for deceptive practices, including misleading consumers about interest rates, charging upfront fees before providing a Good Faith Estimate, and neglecting to disclose to consumers that appraisals were being made by one of its affiliates. For these violations, the CFPB fined Amerisave and its affiliate, Novo Appraisal Management Company, $19.3 million, and fined owner Patrick Markert an additional $1.5 million.\n**Proposes and Enforces Mortgage Rules**\n----------------------------------------\n“It is critical that we shed more light on the mortgage market — the largest consumer financial market in the world,” says CFPB Director Richard Cordray.\nTo that end, in January 2014, the CFPB’s new mortgage servicing rules went into effect, including changes relative to:\n*   Loans based on a borrower’s ability to pay\n*   Qualified Mortgages (i.e., mortgages considered by the CFPB to be ones that borrowers have the ability to pay on)\n*   Steering restrictions\n*   Improved loan management\n*   Foreclosure process limitations\nThen, in July 2014, the CFPB proposed new rules governing the reporting of mortgage data, largely to ensure lenders are not engaging in discriminatory lending practices.\nThe proposal called for a number of changes, but most notably for lenders to:\n1.  Report property value, term of the loan, total points and fees, duration of any teaser or introductory interest rates, applicant’s or borrower’s age, and credit score.\n2.  Report more details about underwriting and pricing, including applicant’s debt-to-income ratio, interest rate of the loan, and total discount points charged for the loan.\n**Promotes “Know Before You Owe” Initiative**\n---------------------------------------------\nThe CFPB’s simplified mortgage disclosure forms help ensure borrowers understand what they’re getting into, particularly relative to\n1.  Risk factors\n2.  Short-term and long-term costs\n3.  Monthly payments\n**Offers Mortgage Data Tools**\n------------------------------\nWhat types of mortgages are being approved in your area?\nWhat types of borrowers are being approved these loans?\nWhich lenders are approving them?\nThese are all questions you can answer via the CFPB’s mortgage data tools, an invaluable resource for being as informed as possible before throwing your hat into the housing market.\n**Advises Free Foreclosure Help**\n---------------------------------\nRather than allow the fear and uncertainty of losing a home to foreclosure cloud your judgment, the CFPB advises you to use caution when it comes to mortgage assistance relief companies:\n*   Do not do business with anyone who asks for upfront fees before they have performed a service\n*   Do not do business with anyone that guarantees they can stop the foreclosure process (there is no such guarantee)\nIn fact, instead of _paying_ someone to help you stop a foreclosure, the CFPB says you are far better-served utilizing free resources.\nThe CFPB website links to state agencies and HUD-approved housing counselors that can help.\n**Provides Training for Housing Counselors**\n--------------------------------------------\nIf and when you need to contact a housing counselor for help in avoiding foreclosure, you need them to be up to speed on the latest mortgage servicing rules.\nTo that end, the CFPB created the _Guide to Mortgage Servicing Rules_, covering:\n*   The 10-step loss mitigation process\n*   Foreclosure prohibitions\n*   Charges and fees that can be imposed on a borrower\n*   The error resolution process\n*   Borrower requests for information\n*   Borrower requests for payoff statements\nThe CFPB has also provided on-site and virtual training to thousands of housing counselors nationwide.\n**Accepts Mortgage Complaints**\n-------------------------------\nHave you had trouble with a home loan? Problems applying for a mortgage? Being approved or denied credit? Trouble understanding the loan? Issues with payments? Issues when signing the agreement? Problems resolving things if and when you were unable to pay?\nWhatever the issue relative to your mortgage, the CFPB wants to hear about it. When you submit a complaint to the CFPB:\n*   Your complaint and supporting documentation is forwarded to the company for their review.\n*   The company has 15 days to respond to the CFPB and to you.\n*   The CFPB provides you with email updates on your complaint status.\nNote, the CFPB also shares complaints with state and federal law enforcement agencies, and sends a complaint report to Congress twice a year. Your complaint may also be posted to the Consumer Complaint Database (minus any personally-identifying information). END
 TITLE: CFPB Regulating the Credit Reporting Bureaus CONTENT: CFPB Regulates the Credit Reporting Industry\n--------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 29, 2017_\nFew things affect your financial well-being as much as much as your credit reports and scores. Thus, the importance of the Consumer Financial Protection Bureau’s (CFPB) regulation of the vast, often confusing, credit reporting industry.\n**Enforces the Fair Credit Reporting Act**\n------------------------------------------\nSince 1970, the Fair Credit Reporting Act (FCRA) has been protecting the rights of consumers. It is the job of the CFPB to ensure that it does just that, taking necessary action if and when credit reporting companies are in violation of your rights.\n**Supervises Credit Reporting Companies**\n-----------------------------------------\nIn 2012, the CFPB became the first federal agency with formal jurisdiction over the operations of credit reporting companies. The industry is much bigger than many people realize, not only including the three major credit bureaus — Experian, TransUnion, and Equifax — but hundreds more companies involved in compiling, selling, reselling, and analyzing information on credit reports.\nThat said, the CFPB’s regulation is limited to companies earning more than $7 million in annual receipts. However, this represents 94 percent of the market. This includes around 30 agencies, the three major bureaus among them.\nIn this role, the CFPB is tasked with overseeing the accuracy and proper implementation of:\n*   Reporting accurate information\n*   Dealing with credit reporting disputes\n*   Disclosing credit report information to consumers\n*   Protecting consumers from fraud and identity theft\n#### **_Special Bulletin to Specialty Consumer Reporting Agencies_**\nIn November 2012, the CFPB issued a bulletin to specialty consumer reporting agencies, stressing the importance of providing a free annual credit report to consumers. \nThese specialty agencies are those that compile and\/or sell information specific to consumer medical debt, check writing, tenancy, employment, etc.\nJust like the three major credit bureaus, these specialty agencies must make it clear and easy for consumers to request a copy of their report every 12 months, a point on which some were falling short.\n#### **_Revisions to Credit Reporting Dispute Process_**\nOften, the best way to prove that a listing on your credit report is incorrect is for you to send along supporting documentation. Unfortunately, the credit bureaus were notoriously lacking in their ability to pass this supporting documentation along to the creditor charged with investing your claim. No more.\nAt the CFPB’s urging, the credit bureaus have incorporated into their e-OSCAR program the ability to easily include this supporting documentation for the investigation of disputes.\n#### **_Consumer Advisory on Child Identity Theft_**\nIn May 2014, the CFPB issued a warning on the prevalence of identity theft among foster children. Their information is stored in agency databases and may be shared with numerous people over the years. As a result, foster kids are particularly vulnerable to identity theft.\n**Compiles Reports on the Credit Reporting Industry**\n-----------------------------------------------------\nIn September 2012, the CFPB published _Analysis of Differences Between Consumer- and Credit-Purchased Credit Scores_. This addresses the much-misunderstood reason consumers see different scores than those used by creditors to make lending decisions.\nIn December 2012, the CFPB published _Key Dimensions and Processes in the U.S. Credit Reporting System_, a review of how the nation’s largest credit bureaus manage consumer data.\n**Answers Credit Reporting Questions via Ask CFPB**\n---------------------------------------------------\nGet the facts in the Ask CFPB section of its website, with questions ranging from the basics – like “How do I get a credit report?” and “How do I get and keep a good credit score?” — to more complicated concerns, like:\n*   Should I use a credit monitoring service to protect myself from identity theft?\n*   What should my dispute letter to a credit reporting company look like?\n*   What can I do if I disagree with the results of a credit report dispute?\nTo ask your question, or browse through those most commonly asked, go to ConsumerFinance.gov. Click on Get Assistance, select CFPB, and search the Credit Reports and Scores category.\n**Accepts Consumer Reporting Complaints**\n-----------------------------------------\nIs a dispute of a listing on your credit report going unanswered? Did you receive an answer, but it failed to correct a listing you know to be erroneous? Are you having trouble accessing the free credit reports you are entitled to every 12 months, not only from the three major credit bureaus, but specialty credit agencies as well?\nWhatever the issue relative to credit reporting, the CFPB wants to hear about it.\nWhen you submit a complaint to the CFPB:\n*   Your complaint and supporting documentation is forwarded to the company for their review.\n*   The company has 15 days to respond to the CFPB and to you.\n*   The CFPB provides you with email updates on your complaint status.\nNote, the CFPB also shares complaints with state and federal law enforcement agencies, and sends a complaint report to Congress twice a year. Your complaint may also be posted to the Consumer Complaint Database (minus any personally-identifying information). END
 TITLE: Vacating a Judgment - How to Vacate or Dismiss a Judgment CONTENT: ###### Written by: Kristy Welsh\n_Last Updated: August 21, 2017_\nDid someone file a judgment against you? If they did, there is a chance you can get it dismissed or vacated. Vacating a judgment is basically the equivalent of stamping a big fat red \"VOID\" on the judgment paperwork. When you file a motion to vacate a judgment you are basically filing an appeal to the court on the case.\nWant proof that this method works? Read these two success stories from our Discussion Forum - Success in Vacating Summary Judgment and Default Judgment Vacated.\nBasic Information on Dismissing a Judgment\n------------------------------------------\nFiling a motion to dismiss a judgment is like filing an appeal on the outcome of a jury trial. If the outcome was not fair, and you have good reason why the court should overturn its prior ruling, you should file a motion. Don't be intimidated by the thought that you are challenging a court ruling, it happens all of the time.\nAs with many collection agencies, many people who file lawsuits to collect money from you in court didn't follow the law. You may be asking yourself why the judge didn't know about this improper deviation. As in most professions, judges tend to specialize in one type of case. For the same reason that you can't expect a heart surgeon to know the best psychiatric medications to prescribe to a patient with schizophrenia, a judge doing small claims or injury lawsuits may not be intimately familiar with consumer law. Sure they know the basics, but one person can't know everything. Before deciding on a case, most judges need to look up and study existing statutes and case rulings. In addition, if the person who sues says they followed the correct procedure and the defendant or his lawyer does not dispute it, it's a sure bet they were given the benefit of the doubt.\nAnother thing to look out for is even if the person suing you followed all the right court procedures, you can still win on technicalities. The two biggest reasons a judgment is \"won\" are:\nA) Defendant failed to respond to the court summons with the proper paperwork in the allowed period of time.\nB) Defendant failed to appear for their court date so the Plaintiff won by default.\nIf you receive a judgment or a writ of restitution and you believe you had a good reason for not responding to the eviction summons or appearing at the hearing, there still may be grounds for asking the court to vacate the judgment. If the court agrees you may have had good reasons for not responding or appearing, the court may decide to set a hearing on your motion to vacate the judgment.\nBecoming Familiar with Legal Terms\n----------------------------------\nA **judgment** is the actual court decision stating that the person suing is in the right. It issues the method to \"right the wrong,\" such as fines, the actions you need to take to correct the violation, or the amount of money you need to pay the Plaintiff.\nA **writ of restitution** is generally used only by landlords. It is basically a court order, in writing, that would be given to a sheriff to evict you if your landlord was trying to get you to move based on non-payment.  Below are a few terms you should become very familiar with as they will be used a lot in legal documents and conversations.\n1.  _**Vacate**_ means dismiss.\n2.  _**Plaintiff**_ is the person suing you.\n3.  _**Defendant**_ is the person being sued (you).\nPrepare Your Motion to Vacate\n-----------------------------\n**The first thing you should do before preparing a motion to vacate is to look up your state's rules of civil procedure.** It should spell out exactly what you need to do to file a motion. It will also tell you what reasons are valid, and may include the exact language you need to use. **If you don't follow the procedures, you can get your motion thrown out on a technicality.**\nMotion and Declaration to Vacate Judgment\n-----------------------------------------\nA sample document is included at the end of this article, which can be used as a template to write up your motion. This document tells the court why the judgment against you should be vacated. First, you need to identify the case by name and court reference number and all the persons involved in the judgment.\nNext, explain your reasons for bringing the motion. State your procedural defenses, that is, the reason(s) why you did not respond to the summons and complaint on time or appear at a hearing. For example:\n*   I was not served with a summons and complaint — you need to check your state laws here. Some states say that a non-certified letter delivered by U.S.P.S. is all that is required to properly serve a complaint. Most states, however, require that you be served in person or at least get your summons sent certified, return requested mail. Double check you state and county procedures regarding the proper service requirements.\n*   I responded to the summons and complaint in time, but a judgment was issued anyway without a hearing.\n*   I was not able to answer the summons and complaint or appear at the show cause hearing because.....(fill in the blanks)\nIn the same space, also tell the court about your defense to the judgment or why the case would have been dismissed had you shown up in the first place. For example:\n*   The collection agency never responded to my request for validation, therefore never providing proof that the debt was mine under the FDCPA.\n*   The amount of the debt exceeded the state's usury interest limits.\nPlease note that the court will only respond to violations of existing laws. They won't accept reasons like: \"My insurance company was supposed to pay this debt and never did, therefore I shouldn't have to pay this medical bill.\"\nHow to File the Paperwork\n-------------------------\nMost likely, you will have to file your motion at the same court which granted the judgment in the first place, which means that if the judgment was granted in Anchorage, Alaska, and you now live in Miami, Florida, you will have to fly to Alaska to both file the paperwork and to attend the court trial.\nGo to the courthouse with your typed document and tell the court clerk that you are filing a motion to vacate a judgment. There may be additional forms to fill out at the courthouse, and there will probably be a nominal filing fee. The clerk should know exactly what needs to be done with your paperwork, and can answer all of your questions and even help you fill out the forms.\nOnce your paperwork is in order, the court will notify you of the upcoming court date. The person who originally sued you, the Plaintiff in the original suit, will typically have 35 days to respond.\nNotify The Original Plaintiff\n-----------------------------\nIn some cases, once the paperwork is filed the court will notify the Plaintiff and\/or Plaintiff's attorney. Be sure to ask if the court will serve notice or if you need to, as serving the notice of summons is crucial to winning your case. If it is your responsibility to serve notice, you can hire a third-party professional service company for a nominal fee.\nWhat If They Offer to Settle Out of Court?\n------------------------------------------\nVery often the original Plaintiff in your lawsuit will come back to you and offer to vacate the judgment, especially if they blatantly flouted the laws in winning the case in the first place and have no proof, say that you were properly served, or that they violated the FDCPA, etc.\nIf they offer to settle out of court, you should demand that they themselves file paperwork to dismiss the lawsuit. Also demand that they notify any collection agencies they may have hired to collect money and also notify the credit bureaus of the \"mistake.\" It is also crucial before accepting any settlement offer (in writing, naturally) that they send you copies of any paperwork received from the courts about the judgment vacation or dismissal.\nWhat Happens at Court?\n----------------------\nIn the best of all possible scenarios, the Plaintiff will not show up for the hearing to dismiss and you will win by default. If this happens, you shouldn't have to present anything to the court and should receive your dismissal automatically, especially if the Plaintiff never responded in writing to the summons.\nIn the second best of all possible worlds, they show up to the hearing and are unable to disprove your reason for requesting the dismissal.\n1.  They are unable to show proper documentation that you were properly served.\n2.  They are unable to show that the debt was legal in the first place (unable to show what the correct debt amount should be, if a contract existed in the first place, etc.)\nThis means, of course, that you should have good documentation on the case and have it available to present in court. Read our article Suing your Creditors.\nWhat Happens When You Win?\n--------------------------\nYou should receive a court document showing that the case was dismissed. Send copies of this document to any collection agency that's contacted you about the case and to the credit bureaus so they will remove any mention of the judgment from your credit report. Even though you demanded that the Plaintiff do this, it only takes a few minutes and a few stamps to insure that it gets done promptly by doing it yourself.\n_Please note: **WE ARE NOT ATTORNEYS**. If you are being sued, it's always a good idea to hire an attorney or get some legal assistance. If you cannot afford an attorney, a lot of people have handled their cases pro per or without a lawyer. Our articles are meant to provide basic information on handling litigation._ END
 TITLE: CFPB Protects Against Illegal Debt Collection Practices CONTENT: How the CFPB Protects Consumers in the Debt Collection Process\n--------------------------------------------------------------\n###### Written by: Kristy Welsh\n_Last Updated: August 29, 2017_\nRegardless of any unpaid debt you may owe, there are limits to what creditors and debt collectors are legally allowed to do in collection of the debt. However, these rules are routinely violated by agencies that should (and likely do) know better.\nFortunately, the CFPB is on your side, protecting consumers in the often stressful, confusing, and costly debt collection process. Here’s how.\nOversees Debt Collection Industry\n---------------------------------\nIn October 2012, the CFPB announced its oversight of the nation’s largest debt collectors, which includes those that log annual receipts of more than $10 million through debt collection action. Though this limits the CFPB’s jurisdiction to around 175 agencies, their activity represents more than 60 percent of debt collection activity in the U.S.\nIn July 2013, the CFPB put debt collectors on the alert, producing two separate bulletins stressing the importance of avoiding 1) unfair, deceptive, and abusive collection practices; and 2) misleading consumers about how paying (or not paying) a debt may affect credit reports, credit scores, and creditworthiness.\n**Publishes Annual Fair Debt Collection Practices Report**\n----------------------------------------------------------\nEvery year, the CFPB publishes a report on the landscape of the state of debt collection practices, including an overview of:\n*   Number and type of debt collection complaints received by both the CFPB and the FTC\n*   CFPB responses to debt collection complaints\n*   How the CFPB supervises and enforces debt collection best practices\n*   Community education and outreach on debt collection rights of consumers\n*   How the CFPB conducts research, sets new policies, and writes new rules\n### **Provides Consumers with Sample Action Letters**\nEven when consumers know their rights relative to debt collection, that doesn’t mean they always know what to do about it, particularly when it comes to communication with creditors and debt collectors.\nThus, the CFPB’s provision of 5 sample action letters consumers can customize to fit some of the most common issues, including:\n1.  Requesting more information about a debt (e.g., how much you owe, who the original creditor was, when the account was opened, date when the account became delinquent, etc.)\n2.  Requesting proof that you owe the debt (without which they must cease collection)\n3.  Instructing a creditor or debt collector how you want to be contacted about the debt\n4.  Instructing a creditor or debt collector to _stop_ contacting you about the debt (with the understanding that you are still legally responsible for it)\n5.  Notifying a creditor or debt collector that you have hired a lawyer (through whom all further communication should be directed)\n### **Writes New Debt Collection Rules**\nIn November 2013, the CFPB appealed to the public for feedback before writing new debt collection rules. There were a number of questions asked of participants, covering topics ranging from debt collection litigation to the use of email, texting, and social media for debt collection purposes.\n### **Takes Legal Action Against Shady Debt Collection Practices**\nIn July 2014, the CFPB took action against Georgia-based Frederick J. Hanna & Associates, an agency that files debt collection lawsuits. The CFPB says the agency is guilty of submitting deceptive court filings and\/or providing evidence that was faulty or unsubstantiated, violating the rights of consumers.\n**Ask CFPB**\n------------\nIf you have a question about your rights relative to debt collection, the CFPB website is a great place to turn. The Ask CFPB section includes a debt collection category, with answers to some of the most commonly asked questions, like:\n*   What is harassment by a debt collector?\n*   What information does a debt collector have to give me about a debt?\n*   What is the best way to negotiate a settlement with a debt collector?\n*   Can a debt collector try and collect on a debt that was discharged in bankruptcy?\n*   What should I do if a creditor or debt collector sues me?\nTo search for debt collection information on the CFPB website, go to ConsumerFinance.gov. Click on \"Get Assistance\" and then select \"Ask CFPB\".\n**Accepts Debt Collection Complaints**\n--------------------------------------\nIs a debt collector ignoring your requests for proof you owe the debt? Are they using abusive intimidation tactics in trying to collect? Are they continuing to contact you about the debt despite your formal letter requesting them to stop?\nNote, the CFPB also shares complaints with state and federal law enforcement agencies, and sends a complaint report to Congress twice a year. Your complaint may also be posted to the Consumer Complaint Database (minus any personally-identifying information).\nWhen you submit a complaint to the CFPB:\n*   Your complaint and supporting documentation is forwarded to the company for their review.\n*   The company has 15 days to respond to the CFPB and to you.\n*   The CFPB provides you with email updates on your complaint status.\nWhatever the issue relative to debt collection, the CFPB wants to hear about it. END
 TITLE: Information on Tax Levies, Tax Liens, Wage Garnishment CONTENT: Articles on Taxes, Tax Liens, Tax Levies, AMT\n---------------------------------------------\n###### Written by: Kristy Welsh\nCredit Info Center not only provides information on how to fix your credit and get out of debt, but we also offer information on taxes. Tax codes change all the time but there are some things that remain the same — tax levies, how to avoid an IRS audit, and how to negotiate back taxes with the IRS. All of these topics, and more, are covered in the articles below. \nAlternative Minimum Tax (AMT) — Learn what alternative minimum tax is and if it applies to you. This article explores the history of AMT and how to minimize and plan for this year end tax.\nWhat is a Tax Lien? — A tax lien can be filed by the state or the federal government against you for taxes owed. Find out more about tax liens and how to release one.\nWhat is a Tax Levy? — If you owe the IRS money, they can legally seize your assets to pay off your tax debt. Learn more about tax levies and how to handle a levy from the IRS.\nDifferent Types of Tax Levies — There are three ways the IRS can seize property from you to pay off your tax debt. This article describes all three methods and how to know when an IRS tax levy has ended.\nWhat is an IRS Offer in Compromise? — If you are looking for a way to settle your tax debt with the IRS, and Offer in Compromise might be the best solution for your situation. Learn what an OIC is and if it will work for you.\nHow to Negotiate Your Tax Debt with the IRS — If you owe money to the IRS, there are ways to negotiate a deal to settle your debt.\nTips to Avoid an IRS Audit — With only one percent of all tax files flagged for audit, you want to do all you can to avoid having to go through this painful and time consuming process.\nCollege Grad's Guide to Filing First Tax Return — First job and first paychecks mean having to file an income tax return. If you are a recent college grad, here are some suggestions to get you ready to file your tax return.\nWhat is Taxable and Non-Taxable Income? — You think you know what is taxable income and what is not — you might be surprised.\nCan Unpaid Taxes Affect Your Credit? — The mere fact you owe the IRS money isn't automatically reported to the credit reporting agencies, a tax lien is. If you owe the IRS money, learn if it will it show up on your credit report, and if it does, how to get rid of it. END